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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 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. 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. This amount has been determined on the basis of
partly subjective considerations and is only an estimate since
the outcome of the investigations in progress is still uncertain.
It is therefore not possible to rule out that the Group could be
required to meet liabilities not covered by the provisions for
risks should such litigation have an adverse outcome, with a
consequently negative, even material, impact on its business,
results of operations and financial condition.
PLANNING AND REPORTING RISKS
Planning and reporting risks are related to the adverse effects
that irrelevant, untimely or incorrect information might have
on the Group’s strategic, operational and financial decisions.
At present and in view of the reliability and effectiveness of
internal procedures for reporting and planning, these risks are
not considered to be relevant for the Group.
