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PRYSMIAN GROUP | DIRECTORS’ REPORT
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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 led to the recognition of a net release of Euro 29 million in the income statement for
the year ended 31 December 2015.
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
of the production process, in turn permitting faster execution of the project itself, as well as stronger
contractual guarantees and longer project timing agreed with the customer.
Plant closures
On 27 February 2015, Prysmian Cavi e Sistemi Italia S.r.l. informed trade union representatives of the
closure of the Ascoli Piceno plant, employing 114 people, dictated by the need to optimise overall country
manufacturing footprint through improved utilisation of production capacity, as well as overall economic
performance through economies of scale.
After a series of meetings at Italy's Ministry of Economic Development, on 15 May an agreement was signed
with plant union representatives and provincial and national unions that ratified the plant's closure on the
same date and the contents of the social plan.
In addition to the usual voluntary redundancy packages and use of the available social safety nets, the social
plan has offered employees the opportunity to relocate to the plants in Merlino and Arco Felice or,
alternatively, to be included in an outplacement program within the local area, also involving a possible re-
industrialisation of the site. Both these activities are being managed by a specialist advisor.