101 / 278
PRYSMIAN GROUP | DIRECTORS’ REPORT
101
alleged infringement in the period 18 February 1999 - 28 July 2005, for all claims made by the European
Commission in implementation of its decision and for any expenses related to such implementation. The
proceedings have since been stayed by order of the court concerned in April 2015, pending the outcome of
the appeals brought against the European Commission's decision by both Prysmian and Pirelli in the
European Courts. Pirelli has challenged this decision before the Court of Cassation, Italy's highest court of
appeal.
It also noted that the Australian and Spanish antitrust authorities have respectively initiated proceedings to
verify the existence of anti-competitive practices by local cable manufacturers and distributors, including the
Group's foreign subsidiaries based in these countries. As regards the proceedings initiated by the Australian
antitrust authorities, the hearing began at the end of November 2015. The Directors are of the opinion not to
make any provision for the risks arising from these proceedings.
Also in 2015, National Grid and Scottish Power, two British operators, filed claims in the High Court in
London against certain cable manufacturers, including Prysmian Group, to obtain compensation for
damages purportedly suffered as a result of the alleged anti-competitive practices condemned by the
European Commission in the decision adopted in April 2014. The Group companies concerned were notified
of this initial court filing during the month of May 2015 and presented their defence early in October 2015,
along with the summons of other parties censured in the European Commission's decision. Among the
parties involved in this action, Pirelli & C. S.p.A. has requested the London High Court to decline its
jurisdiction or nonetheless to stay the proceedings in its regard pending the outcome of the civil action
previously brought by Pirelli against Prysmian Cavi e Sistemi S.r.l. in the Milan Courts, in which it demands
to be held harmless for all claims made by the European Commission in implementation of the latter's
decision and for any expenses related to such implementation.
As at 31 December 2015, the amount of the provision is approximately Euro 143 million. Despite the
uncertainty of the outcome of the investigations in progress and potential legal action by customers as a
result of the European Commission's decision, the amount of this provision is considered to represent the
best estimate of the liability based on the information now available.
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, 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.