37 Contingent assets and liabilities

Guarantees and commitments

EUR million 31 Dec 2015 31 Dec 2014
Collateral notes of companies included in inventory * 173.4 194.7




Pledged deposits


For own commitments 0.0 0.3




Guarantees


On behalf of associates and joint ventures 12.4 14.4

On behalf of consortiums and real estate companies 1.8 1.8

On behalf of others** 10.2

24.4 16.2



Investment commitments 1.1 2.1

*Collateral notes for companies included in inventories are given for collateral security for their debts.

**The guarantees have been granted on behalf of the building construction business in Sweden (Rekab Entreprenad AB) which was divested on 1 September 2015. The acquiring parties have set a counter-commitment for part of these guarantees.

In addition, at the reporting date, the company has EUR 2.7 million (3.4) accrued interest liabilities concerning its hybrid bonds which are not recognised in statement of financial position.

Litigation

On 28 November 2013, the District Court of Helsinki issued its decisions concerning damages related to the asphalt cartel. In line with the decisions, Lemminkäinen recorded approximately EUR 66 million in expenses in its 2013 result. Of this, approximately EUR 60 million consisted of damages ordered only to Lemminkäinen, Lemminkäinen’s share of the damages ordered to it and other asphalt industry companies to be paid jointly and severally, as well as interest and legal expenses related to the damages. This amount was paid by the company in January 2014. Lemminkäinen has appealed against all 35 decisions, where the plaintiffs’ claims were upheld partly, to the Helsinki Court of Appeal. In Lemminkäinen’s opinion, there are some judicial aspects in the decisions, where the conclusions of the District Court differ from previous legal practices. Such judicial aspects are related to the questions of prescriptions and value added tax, for example. The main oral hearing in the Court of Appeal will take place during 2015. The Finnish state and 22 municipalities have also submitted their appeals to the Helsinki Court of Appeal. The main oral hearing at the Helsinki Court of Appeal took place on 2 March 2015–1 October 2015, and on the basis of the Helsinki Court of Appeal’s preliminary announcement, decisions are expected during 2016. In addition to the claims decided on by the District Court in November 2013, 21 claims against Lemminkäinen and other asphalt industry companies for damages are waiting for the main proceeding to begin. These damages amount to a total of approximately EUR 26 million and the company has made a EUR 13 million provision for them.

In addition, the company has other individual legal proceedings related to business operations, the outcome of which is uncertain. The company estimates that these legal proceedings will not have a material impact on the company’s financial position.