2013-vinci-annual-report

ˇˇEurovia CS, a subsidiary of Eurovia in the Czech Republic, together with a number of non-Group companies, are the subject of several claims
made by the Czech Republic’s Road and Motorway Directorate (RMD). These claims relate to works carried out between 2003 and 2007 in
the context of construction of the D47 motorway. At the end of 2012, the RMD initiated arbitration and court proceedings challenging (i) the
inflation coefficients used for the purposes of reviewing the price of the works; and (ii) the payment of various sums in respect of defective
workmanship which, according to the RMD, affected the roads and engineering structures built. Several arbitration awards have been issued
that very substantially reduce the amount of the original claims concerning the inflation coefficients. One such claim, in the amount of
137 million Czech koruna, is still being arbitrated. The RMD’s current claim in respect of defective workmanship amounts to 3.35 billion Czech
koruna (of which Eurovia CS’s share is about 75%). Repairs have been carried out and will continue in 2014 at a substantially lower cost.
In view of the current situation, the Group considers that this dispute will not have a material effect on its financial situation.
ˇˇSoletanche Bachy France has submitted a request for arbitration to the International Chamber of Commerce after ACT (Aqaba Container
Terminal) terminated a contract for the construction of an extension to a container terminal in the port of Aqaba in Jordan. Soletanche Bachy
is disputing the grounds for terminating the contract, and is claiming $10 million in damages. ACT contends that it had valid grounds for
terminating the contract and that it incurred additional costs in completing the works, and is counter-claiming $50 million in damages. In
view of the current situation, the Group considers that this dispute will not have a material effect on its financial situation.
ˇˇOn 13 June 2013, the French Rugby Federation (FFR) sued Consortium Stade de France (CSDF) in the Paris Court of First Instance (Tribunal
de Grande Instance), alleging substantial contractual inequality in the rights and obligations arising from the stadium availability agreement
entered into for a period of 15 years on 20 April 1995. The FFR asserts that, from the outset, there was an inherent inequality in the structure
and manner of conclusion of this agreement, which was accentuated in the context of its performance. The FFR alleges a loss quantified at
€164 million representing amounts improperly received by CSDF. It also complains that CSDF profited from the fame of the French rugby
union team by promoting and selling its products through promotional activities, the organisation of games or the use of the FFR’s image,
and that this caused it a loss of €50,000. In other proceedings, the FFR is claiming compensation from CSDF for the loss, which it estimates
at €756,000, allegedly caused by the cancellation of the France-Ireland rugby match on 11 February 2012 and its postponement until 4 March
2012. The decision to cancel this match was made because the pitch was frozen. CSDF disputes the merits of all these claims. Both these
proceedings are still in progress: an application for an adjournment has been made in the first case while a final decision is awaited in the
action brought by the FFR in the Administrative Court; the second case has been adjourned for the same reason. In view of the current situation,
the Group also considers that this dispute will not have a material effect on its financial situation.
The following litigation ended during 2013:
ˇˇIn March 2010, the Seine-Maritime département applied to the Rouen Administrative Court to order Eurovia Haute-Normandie to pay
€70.7 million, corresponding to the value of tenders awarded in 1988, 1993 and 1998, which the département asked the Court to declare
null and void on the grounds of anti-competitive practices preceding their award. By an order dated 21 June 2012, the chairman of the Conseil
d’Etat’s disputes division referred the matter to the Orléans Administrative Court. This action by Seine Maritime followed a decision made
by the Rouen Court of Appeal on 14 December 2009, confirming a judgment of the Rouen Criminal Court dated 11 September 2008, in which
the companies were ordered to pay €4.9 million to compensate for the material damage suffered by the département. These decisions were
themselves consecutive to a decision of the Conseil de la Concurrence (*) of 15 December 2005 imposing sanctions on six companies, including
Eurovia Haute-Normandie, for anti-competitive practices committed between 1991 and 1998 with respect to tenders for the supply and
application of bitumen coatings, which was confirmed on appeal by the Paris Court of Appeal on 30 January 2007. This dispute was ended
in July 2013 through an out-of-court agreement that has no material impact on the Group’s financial position.
To the Company’s knowledge, there are no other disputes or matters submitted to arbitration (including any proceedings known to the
Company, pending or with which it is threatened) that are likely to have, or have had in the last 12 months, a material effect on the business,
financial performance, net assets or financial situation of the Company or Group.
(*) Now known as the Autorité de la Concurrence.
CONSOLIDATED FINANCIAL STATEMENTS 277