195
The following table reports the movements in these provisions during the period:
(in millions of Euro)
Restructuring Contractual and Environmental
Tax Contingent
Other risks
Tolal
costs
legal risks
risks inspections
liabilities and charges
Balance at 31 December 2012
40
272
11
12
10
48
393
Business combinations
-
-
-
-
-
1
1
Increases
22
21
4
9
-
8
64
Utilisations
(41)
(21)
-
-
-
(19)
(81)
Releases
(1)
(18)
(9)
(4)
(4)
(12)
(48)
Currency translation differences
-
(5)
-
-
-
(2)
(7)
Other
(1)
9
-
(1)
-
2
9
Total movements
(21)
(14)
(5)
4
(4)
(22)
(62)
Balance at 31 December 2013
19
258
6
16
6
26
331
The provision for restructuring costs reports a net decrease of
Euro 21 million.
In particular, Euro 22 million has been recognised in the period,
mainly for projects to restructure certain plants in Italy, Spain,
Germany, France and The Netherlands; Euro 41 million of
this provision has been utilised, mostly in connection with
restructuring projects carried out in Germany, France, The
Netherlands, Spain, Italy, and Finland.
At 31 December 2013, the provision for contractual and legal risks
reports a net decrease of Euro 14 million:
• increases and releases, totalling Euro 3 million, relate to:
a) the risk regarding antitrust investigations underway in various
jurisdictions, which has decreased by Euro 6 million, mainly
due to exchange adjustments to the portion of the provision in
foreign currency; this decrease has taken the total provision to
around Euro 199 million at 31 December 2013. More specifically,
the European Commission, the US Department of Justice and
the Japanese antitrust authority started investigations 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. 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. has filed its objections and presented its
preliminary defence.
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. During the month of December 2013, the company ABB
and one of its senior managers signed an agreement with the
Brazilian antitrust authority, under which they admitted the
conduct alleged by the authority and pledged to cooperate with it
and to each pay an agreed fine.
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 contained the Commission’s preliminary position on
alleged anti-competitive practices and did not prejudge its final
decision. Prysmian subsequently submitted its defence which
it was also able to present at the hearing before the European
Commission held during the month of June 2012. In July 2013,
Prysmian submitted information, at the Commission’s request,
about its 2004 sales in the high voltage underground and
submarine cables businesses. In addition, a state of play meeting
was held between the Company and the European Commission
at the start of October 2013. Subsequently, in February 2014, the
Commission requested the figures for the Group’s consolidated
sales at 31 December 2013 which, together with the length of
time elapsing since the investigation’s start, could indicate that
a decision may be issued soon.
As at 31 December 2013, the amount of the provision for the
risks relating to the investigations underway in the various
jurisdictions, except for Brazil, is approximately Euro 199 million.
