2011 Annual Report - Italcementi Group

2011 Annual Report
Presentation 4
General information 15
Annual Report Consolidated Annual Report Directors’ report 28
Extraordinary session Italcementi S.p.A. Annual Report Consolidated financial statements 63
20. Provisions
Non-current and current provisions totaled 250,783 thousand euro at December 31, 2011, an increase of 6,006
thousand euro from December 31, 2010, as follows:
December 31, Additions Decreases Reversed Translation Other changes Total changes December 31,
2010
unused differences and reclassifications
2011
(in thousands of euro)
amounts
Environmental restoration 84,896 11,612 (8,140) (948) (244) 4,594 6,874 91,770
Disputes 88,871 15,723 (15,922) (4,139) (1,323) 11,158 5,497 94,368
Other provisions 71,010 13,957 (18,541) (9,759) (178) 8,157 (6,365) 64,645
Total 244,777 41,291 (42,602) (14,846) (1,745) 23,909 6,006 250,783
Non-current portion 241,240 41,034 (39,223) (14,846) (1,590) 22,176 7,550 248,790
Current portion 3,537 257 (3,379) - (155) 1,733 (1,544) 1,993
“Disputes” reflects provisions for fiscal risks deemed probable as a result of tax audits and adjustments to tax
returns, provisions for disputes with employees and provisions for restoration of urban and industrial areas.
“Other changes and reclassifications” refers mainly to Calcestruzzi group provisions after consolidation on
January 1, 2011.
Contingent liabilities
The main contingent liabilities relating to disputes and proceedings pending at December 31, 2011, for which
amounts were not provided, are described below. The Group is not aware of other disputes, legal controversies
or other exceptional facts that might have a material impact on its financial position, results and operations.
Europe
Regarding the investigation begun in November 2008 by the European Commission into some cement
producers, including Italcementi S.p.A. and the subsidiaries Ciments Français S.A., Ciments Calcia S.A. and
Compagnie des Ciments Belges S.A., in December 2010 the European Commission notified the decision for
the formal opening of the proceeding to Italmobiliare S.p.A. (and, indirectly through Italmobiliare, to the abovenamed
Group companies and the Spanish subsidiary Financiera Y Minera).
In April 2011, the Commission served a further formal notice on Italmobiliare of its decision to request extensive
additional economic, financial and commercial information. Italmobiliare provided the information within the
required term and, simultaneously, lodged an appeal with the EU General Court against the decision. Both the
investigation and the proceedings are still underway.
Regarding the proceeding begun in 2009 by the General Directorate of the Belgian Competition Authority
against cement producers (including Compagnies des Ciments Belges (CCB), no further developments have
taken place after the charges were formally notified in April 2010. The parties exchanged briefs and hearings
took place. The Belgian Competition Authority is expected to make a decision in the first half of 2012.
Turkey
As a result of the non-closure of the 2008 agreement for the sale of the Turkish operations (Set Group) by
Ciments Français to Sibcem, a number of proceedings are pending.
Sibconcord, the main shareholder of Sibcem, has begun a proceeding in Russia to annul the agreement. On
September 26, 2011, the ruling annulling the contract obtained in first instance by Sibconcord against which
Ciments Français filed an appeal become effective. After an unsuccessful petition to the regional court of
cassation, Ciments Français filed an appeal with the Russian Supreme Court. In December 2011, on the basis
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