Siemens 2013 Annual Report Download - page 311

253 D. Consolidated Financial Statements 357 E. Additional Information
254 D.1 Consolidated Statements of Income
255 D.2 Consolidated Statements of Comprehensive Income
256 D.3 Consolidated Statements of Financial Position
257 D. Consolidated Statements of Cash Flows
258 D.5 Consolidated Statements of Changes in Equity
260 D.6 Notes to Consolidated Financial Statements
348 D.7 Supervisory Board and Managing Board
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the release of withheld milestone payments to the supplier
consortium of approximately € million plus interest. As of
September , TVO’s alleged counterclaims amounted to
€. billion based on a delay of up to  months. Based on a
completion in August , TVO estimates that its counter-
claims amount to €. billion. The further delay beyond
 months (beyond December ) as well as the further
slippage in the schedule currently under assessment by the
supplier consortium and TVO could lead TVO to further in-
crease its counterclaims. In October  the supplier consor-
tium increased its claim for an extension of construction time
and its monetary claims to €. billion. The arbitration pro-
ceedings may continue for several years.
As previously reported, Siemens AG terminated its joint ven-
ture with Areva S.A. (Areva) in January . 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 obliga-
tions 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 in May . According to this
award, Siemens had to pay Areva liquidated damages of €
million plus interest. Pursuant to the arbitral award, the dis-
puted non-compete obligation was reduced to four years
(ending in September ).
As previously reported, Siemens is involved in the construction
of a power plant in the United States. Siemens Energy, Inc.,
USA, and Kvaerner North American Construction, Inc., USA
(Kvaerner) are consortium partners in this project, commis-
sioned by Longview Power LLC, USA (Longview). Foster Wheel-
er North America Corp, USA (Foster Wheeler) supplied the boil-
er for the project. Kvaerner filed an arbitration request before
the American Arbitration Association in June , and in Octo-
ber and November , the parties filed claims for monetary
damages against one another. The amounts claimed by
Longview and Foster Wheeler from the consortium partners to-
tal approximately US$ million. Siemens filed claims for
monetary damages of approximately US$ million against
Longview and Foster Wheeler. Kvaerner is claiming approxi-
mately US$. million from Longview and Foster Wheeler.
Longview filed for bankruptcy under Chapter  of the US Bank-
ruptcy Code, which may result in delay to the arbitration pro-
ceeding dealing with the claim and counterclaim.
In July , Hellenic Telecommunications Organization S.A.
(OTE) filed a lawsuit against Siemens AG with the district court
of Munich, Germany, seeking to compel Siemens AG to dis-
close the outcome of its internal investigations with respect to
OTE. OTE seeks to obtain information with respect to allega-
tions of undue influence and / or acts of bribery in connection
with contracts concluded between Siemens AG and OTE from
calendar  to . In May , OTE was granted access to
the public prosecutor’s files in Greece. At the end of July ,
OTE expanded its claim and requested payment of damages by
Siemens AG of at least €. million to OTE for alleged bribery
payments to OTE-employees. While Siemens AG continues to
defend itself against the expanded claim, Siemens AG and OTE
remain in discussions to resolve the matter.
As previously reported, Siemens A.E. entered into a subcon-
tract agreement with Science Applications International Cor-
poration, Delaware, USA, (SAIC) in May of  to deliver and
install a significant portion of a security surveillance system
(the CI project) in advance of the Olympic Games in Athens,
Greece. Siemens A.E. fulfilled its obligations pursuant to the
subcontract agreement. Nonetheless, the Greek government
claimed errors related to the CI-System and withheld amounts
for abatement in a double-digit million € range. Furthermore,
the Greek government is withholding the final payment in a
double-digit million € range, claiming that the system has not
yet been finally accepted. Although Siemens A.E. is not a con-
tractual party of the Greek government, under Siemens A.E.’s
subcontract agreement with SAIC non-payment by the Greek
government also has an economic effect on Siemens A.E. SAIC
has filed for arbitration contesting all the Greek government’s
claims and the withholding of payments. In July , the arbi-
tration court issued the arbitral award ordering the Greek State
to pay € million to SAIC. The Greek State is contesting the
enforcement of the arbitral award. The final resolution of
this dispute has been complicated by public bribery and
fraud allegations against Siemens A.E. in Greece, which have
resulted in extensive negative media coverage concerning the
CI system.
As previously reported, Russian authorities are conducting
widespread investigations regarding possible fraudulent activ-
ities of resellers and governmental officials relating to procure-
ment of medical equipment in the public sector. As is the case
with other providers of medical equipment, OOO Siemens,
Russia, has received numerous information requests and in-
quiries were made on-site by the authorities regarding tenders
in the public healthcare sector. OOO Siemens is cooperating in
the ongoing investigations which also relate to certain individ-
ual employees.