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CONSOLIDATED FINANCIAL REPORT | EXPLANATORY NOTES
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Prysmian, Pirelli & C. S.p.A. and The Goldman Sachs Group Inc. have all been accepted by the General
Court of the European Union. Prysmian has not incurred any financial outlay as a result of this decision
having elected, pending the outcome of the appeals, to provide bank guarantees as security against
payment of 50% of the fine imposed by the European Commission (amounting to approximately Euro 52
million) for the alleged infringement in both periods. As far as Prysmian is aware, Pirelli & C. S.p.A. has also
provided the European Commission with a bank guarantee for 50% of the value of the fine imposed for the
alleged infringement in the period 18 February 1999 - 28 July 2005. Pirelli & C. S.p.A. has also brought a
civil action 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 its decision and for any
expenses related to such implementation. Prysmian Cavi e Sistemi S.r.l. started legal proceedings in
February 2015, requesting that the claims brought by Pirelli & C. S.p.A. be rejected in full and that it should
be Pirelli & C. S.p.A. which holds harmless Prysmian Cavi e Sistemi S.r.l., with reference to the 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 made 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.
Following detailed and careful analysis of the European Commission's ruling, and given the fact that this
ruling has been appealed and so could be submitted to second-instance judgement, as well as the fact that
the investigation initiated by the Canadian Antitrust Authority had ended without any sanctions for Prysmian,
it was decided already back in 2014 to release part of the existing provision.
Furthermore, during the last few months of 2015 the US Department of Justice formally closed its previously
initiated investigation without charges against Prysmian.
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 & C. S.p.A. 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.
The above events have resulted in a reassessment of the risks associated with the investigations in progress
and the consequent recognition in the 2015 income statement of a net release for Euro 29 million.
Western HVDC Link Contract (UK)
Over the course of 2015, the Group's income statement benefited from Euro 30 million in connection with the
Western HVDC Link (UK) contract. This was the net effect of several factors such as the increased efficiency