Consolidated Financial Statements >
CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES
228
| 2012 annual report prysmian group
The provision for restructuring costs reports a net increase of
Euro 10 million.
In particular, Euro 38 million has been recognised in the
period, mainly for projects to restructure certain plants in
Italy, Spain, Great Britain, Germany, France, the Netherlands
and Finland; Euro 29 million of this provision has been
utilised, mostly in connection with restructuring projects
carried out in Germany, France, the Netherlands, Spain and
the United States.
At 31 December 2012, the value of the provision for contractual
and legal risks reports a net increase of Euro 2 million:
• total increases of Euro 27 million relate to:
a) Euro 0.8 million for the risk regarding antitrust
investigations underway in various jurisdictions; this
increase has taken the total provision to some Euro
207 million at 31 December 2012. More specifically,
the European Commission, the US Department of
Justice and the Japanese antitrust authority started an
investigation in late January 2009 into several European
and Asian electrical cable manufacturers to verify the
existence of alleged anti-competitive practices in the
high voltage underground and submarine cables markets.
Subsequently, the Australian Competition and Consumers
Commission (“ACCC”) and the New Zealand Commerce
Commission also started similar investigations. During
2011, the Canadian antitrust authority also started an
investigation into a high voltage submarine project
dating back to 2006. The investigations in Japan and New
Zealand have ended without any sanctions for Prysmian.
The other investigations are still in progress.
In Australia, the ACCC has filed a case before the Federal
Court arguing that Prysmian Cavi e Sistemi S.r.l. (formerly
Prysmian Cavi e Sistemi Energia S.r.l.) and two other
companies violated antitrust rules in connection with a
high voltage underground cable project awarded in 2003.
Prysmian Cavi e Sistemi S.r.l. was officially served with
this claim in April 2010. It has since filed its objections
and will now have to defend itself.
In Brazil, the local antitrust authority has started
an investigation into several cable manufacturers,
including Prysmian, in the high voltage underground and
submarine cables market. Prysmian has taken steps to
present its preliminary defence.
At the start of July 2011, Prysmian received a statement
of objection from the European Commission in relation
to the investigation started in January 2009 into the
high voltage underground and submarine energy cables
market. This document contains the Commission’s
preliminary position on alleged anti-competitive practices
and does not prejudge its final decision. Prysmian has
submitted its defence which it was also able to present at
the hearing before the European Commission held during
the month of June 2012.
Already during 2011, in view of the developments in the
European Commission investigation, Prysmian decided to
estimate the risk relating to the antitrust investigations
underway in the various jurisdictions, except for Brazil.
As at 31 December 2012 the amount of the provision
recognised in connection with these investigations is
approximately Euro 207 million. This provision is the best
estimate of the liability based on the information now
available even though the outcome of the investigations
underway in the various jurisdictions is still uncertain;
b) approximately Euro 23 million for contractual risks;
c) approximately Euro 3 million for employment disputes.
• utilisations of Euro 15 million mostly refer to employment
disputes (Euro 3 million), legal costs relating to antitrust
investigations (Euro 2 million) and risks relating to
contractual penalties and guarantees for the remainder;
• releases of Euro 15 million mostly relate to risks connected
with the different business.
The overall increase of Euro 3 million in the provision for
environmental risks relates to risks identified at a US
subsidiary.
The provisions for other risks and charges have seen a
significant increase following the consolidation of onerous
contracts of Global Marine Systems Energy Ltd (Euro 26
million).
The provisions for tax inspections have not reported any
significant changes during 2012.
