Toto S.p.A. Costruzioni Generali

The “Claims” recorded are broken down overall as follows:Client Amount €/000ANAS 26,000Autostrade per l'Italia Spa 58,000Strada dei Parchi 3,000Other 2,800Total 89,800TOTO SPA COSTRUZIONI GENERALIThe main claims recorded are the following:€ 25,000,000 for claims relating to the contract awarded by ANAS for themodernisation of the A-3 SA/RC Motorway. The lot is situated in the municipality ofContursi (SA).An initial arbitration procedure has already been concluded in relation to this contractwith the issue of an award sustaining the claims made by the company sentencingthe organisation to pay a sum higher than that recorded in the accounts at the time.The conclusion of the second arbitration procedure is pending which shouldconclude positively, given the nature of the claims in question which are in no waydifferent to those already settled by the previous judgment and considering theresults of the Expert’s Report filed by the expert witness appointed by the Arbitrators.€ 3,000,000 for claims made in relation to 2 contracts awarded by Strada dei ParchiSpa, operator of the A24 and A25 motorway routes. For both contracts the Clientwas requested to start proceedings for an amicable agreement pursuant to art. 240of Italian Leg. Dec. 163/2006, which should be concluded by 2012.€ 50,000,000 for “Claims” made relating to work under the contract awarded byAutostrade per l’Italia involving the upgrading of the Apennine section of the Milan –Naples Motorway lots 6-7. As described in the Directors’ Report, work carried out onthe Val di Sambro tunnel showed that the material (rock) being excavated has worsegeomechanical characteristics than that forecast in the executive design. In fact, itwas found that the rock, classified as a “dormant landslide” in the RegionalGeographical Map and in the project, was instead affected by “active” landslidemovement. As a consequence, from 2010 Project Management has imposed certainchanges to the project, ordering precise changes to the works being carried out,having a negative impact on forecast production and increasing construction costs.Finally, in December 2011 work was suspended after notice was given and theworks were made safe.Claims amount to approximately € 138 million and, in this respect, an amicablesettlement procedure will begin soon pursuant to art. 240 of Italian Leg. Dec.163/2006.€ 8,000,000 for “Claims” made for work under the contract awarded by Autostradeper l’Italia S.p.A. regarding the upgrading of the Apennine section of the Milan –Naples Motorway lot 13. For this tender, in 2008 and 2010 two amicable agreementswere entered into between the company and the client, resulting in the recognitionand payment of increased fees totalling € 32 million. The carrying amount consists ofincreased charges accrued after the date the second amicable settlement wasentered into. Claims amount to approximately € 24 million and, in this respect, legalproceedings will soon begin.€ 2,500,000 for “Claims” made for increased costs and charges borne by Toto S.p.A.due to delays caused by the Lebanese Government in completing construction workon Lot A2 of the Haddath – Syrian Border Motorway, Saoufar – Mdeirij Section,which links Beirut to Damascus.In 2007, Toto S.p.A. filed a petition for arbitration in Paris in accordance with theNotes to the financial statements as of 31/12/2011 Page 44