323
These amount to Euro 33,620 thousand, compared with Euro 31,911 thousand at 31 December 2011.
The following table reports the movements in these provisions during the period:
The net increase of Euro 1,709 thousand in the provision for
contractual and legal risks includes Euro 589 thousand in
increases and Euro 1,003 thousand in utilisations for legal fees
relating to the Antitrust investigations in progress in various
jurisdictions. More specifically, the European Commission 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. During 2011, the Canadian antitrust
authority also started an investigation into a high voltage
submarine project dating back to 2006. The investigation in
Japan has ended without any sanctions for Prysmian S.p.A..
The other investigations are still in progress.
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 S.p.A. has taken steps to present its
preliminary defence.
At the start of July 2011, Prysmian S.p.A. 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 S.p.A. 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 S.p.A.
has decided to estimate the risk relating to the antitrust
investigations underway in the various jurisdictions, except
for Brazil. At 31 December 2012, the Company’s share of the
provision recognised in respect of these investigations is
around Euro 31 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.
These amounts have not been discounted because the related
outlay is expected to occur in the next 12 months.
10. PROVISIONS FOR RISKS AND CHARGES
(in thousands of Euro)
Contractual and
Other risks
Total
legal risks
and charges
Balance at 31 December 2011
31,874
37
31,911
Increases
2,712
-
2,712
Utilisations
(1,003)
-
(1,003)
Releases
-
-
-
Total movements
1,709
-
1,709
Balance at 31 December 2012
33,583
37
33,620
