Siemens 2011 Annual Report Download - page 323

153 D. Consolidated Financial Statements 273 E. Additional information
158 D. Consolidated Statements of Changes in Equity
160 D. Notes to Consolidated Financial Statements
266 D. Supervisory Board and Managing Board
154 D. Consolidated Statements of Income
155 D.2 Consolidated Statements of Comprehensive Income
156 D. Consolidated Statements of Financial Position
157 D. Consolidated Statements of Cash Flow
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der investigation which confirmed that the proceedings
against Siemens Healthcare Diagnostics S.r.l. were closed, but
accused Siemens S.p.A. of having participated in an anti-com-
petitive arrangement. On August , , the Italian Antitrust
Authority fined several companies, including Siemens S.p.A.
for alleged anti-competitive behavior. The fine imposed on
Siemens S.p.A. amounts to €. million. The company ap-
pealed the decision.
In September , the Competition Commission of Pakistan
requested Siemens to present its legal position regarding an
alleged anti-competitive arrangement since  in the field
of transformers and air-insulated switchgears. Siemens is
cooperating with the authority.
In October , the local Antitrust Authority in Rovno,
Ukraine, notified DP Siemens Ukraine of an investigation into
anti-competitive practices in connection with a delivery of
medical equipment to a public hospital in . Siemens is co-
operating with the authority.
As previously reported, in June , the Turkish Antitrust
Agency confirmed its earlier decision to impose a fine in an
amount equivalent to € million on Siemens A.Ş. Turkey
based on alleged antitrust violations in the traffic lights mar-
ket. Siemens A.Ş. Turkey has appealed this decision and this
appeal is still pending.
OTHER PROCEEDINGS
As previously reported, starting in December , the Com-
pany and Qisda Corp. (formerly named BenQ Corp.), a Taiwan-
ese company, were parties in an arbitration proceeding before
the International Chamber of Commerce (ICC) relating to the
purchase by Qisda of the Company ’s mobile devices business
in . The parties subsequently resolved their disputes and,
upon joint request of the parties, the ICC issued an Award by
Consent in March .
On November , , Siemens AG and the insolvency ad-
ministration of BenQ Mobile GmbH & Co. OHG announced
that they had reached a settlement after constructive discus-
sions that began in . In the settlement agreement,
Siemens AG agreed to a gross payment of € million, which
was made in December . As of September , , the
total net payment amounted to approximately € million af-
ter taking into account the payments made by the insolvency
administrator to Siemens.
As previously reported, Siemens AG is a member of a supplier
consortium that has been contracted to construct the nuclear
power plant “Olkiluoto ” in Finland for Teollisuuden Voima Oyj
(TVO) on a turnkey basis. Siemens AG’s share of the consider-
ation to be paid to the supplier consortium under the contract
is approximately %. The other member of the supplier con-
sortium is a further consortium consisting of Areva NP S.A.S.
and its wholly-owned subsidiary, Areva NP GmbH. The agreed
completion date for the nuclear power plant was April ,
. Completion of the power plant has been delayed for rea-
sons which are in dispute. In December , the supplier
consortium filed a request for arbitration against TVO de-
manding an extension of the construction time, additional
compensation, milestone payments, damages and interest. In
June , the supplier consortium increased its monetary
claim; it now amounts to €. billion. In April , TVO re-
jected the claims and made counterclaims against the supplier
consortium. These consist primarily of damages due to the de-
lay amounting to approximately €. billion based on an esti-
mated completion of the plant in June  with a delay of 
months. Since then the estimated time of completion of the
plant has been further delayed, which could increase the
counterclaims. TVO has recently estimated in a press release
that the start of the regular operation of the plant could be
postponed until . The estimated completion of the plant is
currently under evaluation. The final phases of the plant com-
pletion will require the full cooperation of all parties involved.
As previously reported, Siemens AG terminated its joint ven-
ture with Areva S.A. (Areva) in early . Thereafter Siemens
AG entered into negotiations with the State Atomic Energy
Corporation Rosatom (Rosatom) with a view to forming a new
partnership active in the construction of nuclear power
plants, in which it would be a minority shareholder. In April
, Areva filed a request for arbitration with the ICC against
Siemens AG. Areva sought an order enjoining Siemens AG
from pursuing such negotiations with Rosatom, a declaration
that Siemens AG is in material breach of its contractual obli-
gations and a reduction of the price payable to Siemens AG for
its stake in the Areva NP S.A.S. joint venture. The final award
of the arbitral tribunal was notified on May , . Accord-
ing to this award, Siemens had to pay Areva liquidated dam-
ages of € million plus interest. Pursuant to the arbitral
award, the disputed non-compete obligation was reduced to
four years (ending on September , ).
As previously reported, Siemens is involved in a power plant
construction project in the United States in which one of the
other parties to the project filed an arbitration proceeding in