Consolidated statement of cash flows

 

Note Year ended
31 December 2014
Year ended
31 December 2013
Cash flows from operating activities
Profit before taxation   1 498 215 1 683 621
Adjustments for:
Share in (profit)/loss of joint ventures 936 2 709
Depreciation and amortization 1 796 917 1 727 069
(Gain)/loss on foreign exchange differences 7 257 847
Interest and dividens, net 286 733 220 283
(Gain) / loss on investing activities 44 543 317 714
Change in receivables 111 716 924 417
Change in inventories (43 868) 186 768
Change in payables excluding loans and borrowings (234 014) (328 877)
Change in other non-current and current assets (178 409) (492 481)
Change in deferred income, government grants and accruals (67 333) (115 596)
Change in provisions (295 463) 423 730
Income tax paid (308 393) (466 637)
Other (930) (4 485)
Net cash from operating activities 2 617 907 4 079 082
Cash flows from investing activities
      Proceeds from sale of property, plant and equipment and intangible assets 47 800 29 785
      Purchase of property, plant and equipment and intangible assets 43.1

43.1. Cash flows from investing activities

Purchase of property, plant and equipment and intangible assets Expenditure on purchase of property, plant and equipment and intangible assets of PLN 3 464 578 thousand were mainly related to the purchase of property, plant and equipment of PLN 2 819 090 thousand in the year ended 31 December 2014, which has been presented in detail in Note 18 hereto and the change in prepayments for the purchase of property, plant and equipment and intangible assets of PLN 298 027 thousand. Sale of other financial assets Proceeds from sale of other financial assets of PLN 38 264 thousand include mainly the proceeds from sale of shares in PŚZiPZ Elvita Jaworzno III Sp. z o.o. for the total amount of PLN 34 359 thousand by Group companies.
(3 464 578) (3 933 673)
Proceeds from sale of other financial assets 43.1

43.1. Cash flows from investing activities

Purchase of property, plant and equipment and intangible assets Expenditure on purchase of property, plant and equipment and intangible assets of PLN 3 464 578 thousand were mainly related to the purchase of property, plant and equipment of PLN 2 819 090 thousand in the year ended 31 December 2014, which has been presented in detail in Note 18 hereto and the change in prepayments for the purchase of property, plant and equipment and intangible assets of PLN 298 027 thousand. Sale of other financial assets Proceeds from sale of other financial assets of PLN 38 264 thousand include mainly the proceeds from sale of shares in PŚZiPZ Elvita Jaworzno III Sp. z o.o. for the total amount of PLN 34 359 thousand by Group companies.
38 264 4 237
Advance payments for acquisition of shares in a subsidiary (232 500)
Purchase of other financial assets (6 684) (4 920)
Dividends received 3 931 18 323
Interest received 1 068 40
Repayment of loans granted 11 700 46 800
Loans granted (18 050) (108 800)
Other (184) 220
Net cash used in investing activities (3 386 733) (4 180 488)
Cash flows from financing activities
Payment of finance lease liabilities (20 622) (14 911)
Proceeds from loans and borrowings 452 325
Repayment of loans and borrowings 43.2

43.2. Cash flows from financing activities

Loans and borrowings repaid Expenditure on repayment of loans and borrowings of PLN 169 971 thousand disclosed in the consolidated statement of cash flows result mainly from repayment of PLN 132 818 thousand of the loans granted by the European Investment Bank by the Parent. Issuance of debt securities Proceeds from issue of debt securities of PLN 3 653 234 thousand result from the issuance of long-term unsecured bonds in the amount of PLN 1 750 000 thousand by the Company in 2014 under the Bond Issue Scheme of July 2013, the issue of Tranche E short-term bonds in the amount of PLN 300 000 thousand and long-term bonds issued under the Company’s agreement with Bank Gospodarstwa Krajowego in the amount of PLN 900 000 thousand. Moreover, in December 2014, TAURON Sweden Energy AB (publ), a subsidiary, issued long-term bonds with the par value of EUR 168 000 thousand and the issue value of EUR 166 572 thousand (PLN 703 234 thousand). The above transactions have been described in detail in Note 35.2 hereto. Redemption of debt securities Expenditure on redemption of debt securities of PLN 1 148 200 thousand result from the Parent’s early redemption of Tranche A bonds in the amount of PLN 848 200 thousand in 2014 and redemption of Tranche E short-term bonds in the amount of PLN 300 000 thousand, as discussed in detail in Note 35.2 to these consolidated financial statements. Interest paid During the year ended 31 December 2014 the total value of interest paid by the Group in relation to loans, borrowings, debt securities (along with the hedges realized from IRS) and finance leases amounted to PLN 319 667 thousand. The Group’s consolidated statement of cash flows discloses borrowing costs capitalized in the current period for asset financing as expenditure for acquisition of property, plant and equipment and intangible assets in cash flows from investing activities. Acquisition of non-controlling interests Expenditure on acquisition of non-controlling interest of PLN 125 402 thousand resulted primarily from the Parent’s payment of a portion of the price, i.e. PLN 77 500 thousand, for the acquisition of shares in a subsidiary TAURON Wydobycie S.A. from Kompania Węglowa S.A., as discussed in detail in Note 34 to these consolidated financial statements and allocation of PLN 26 897 thousand for redemption of treasury shares by TAURON Ciepło Sp. z o.o.
(169 971) (141 226)
Issue of debt securities 43.2

43.2. Cash flows from financing activities

Loans and borrowings repaid Expenditure on repayment of loans and borrowings of PLN 169 971 thousand disclosed in the consolidated statement of cash flows result mainly from repayment of PLN 132 818 thousand of the loans granted by the European Investment Bank by the Parent. Issuance of debt securities Proceeds from issue of debt securities of PLN 3 653 234 thousand result from the issuance of long-term unsecured bonds in the amount of PLN 1 750 000 thousand by the Company in 2014 under the Bond Issue Scheme of July 2013, the issue of Tranche E short-term bonds in the amount of PLN 300 000 thousand and long-term bonds issued under the Company’s agreement with Bank Gospodarstwa Krajowego in the amount of PLN 900 000 thousand. Moreover, in December 2014, TAURON Sweden Energy AB (publ), a subsidiary, issued long-term bonds with the par value of EUR 168 000 thousand and the issue value of EUR 166 572 thousand (PLN 703 234 thousand). The above transactions have been described in detail in Note 35.2 hereto. Redemption of debt securities Expenditure on redemption of debt securities of PLN 1 148 200 thousand result from the Parent’s early redemption of Tranche A bonds in the amount of PLN 848 200 thousand in 2014 and redemption of Tranche E short-term bonds in the amount of PLN 300 000 thousand, as discussed in detail in Note 35.2 to these consolidated financial statements. Interest paid During the year ended 31 December 2014 the total value of interest paid by the Group in relation to loans, borrowings, debt securities (along with the hedges realized from IRS) and finance leases amounted to PLN 319 667 thousand. The Group’s consolidated statement of cash flows discloses borrowing costs capitalized in the current period for asset financing as expenditure for acquisition of property, plant and equipment and intangible assets in cash flows from investing activities. Acquisition of non-controlling interests Expenditure on acquisition of non-controlling interest of PLN 125 402 thousand resulted primarily from the Parent’s payment of a portion of the price, i.e. PLN 77 500 thousand, for the acquisition of shares in a subsidiary TAURON Wydobycie S.A. from Kompania Węglowa S.A., as discussed in detail in Note 34 to these consolidated financial statements and allocation of PLN 26 897 thousand for redemption of treasury shares by TAURON Ciepło Sp. z o.o.
3 653 234
Redemption of debt securities 43.2

43.2. Cash flows from financing activities

Loans and borrowings repaid Expenditure on repayment of loans and borrowings of PLN 169 971 thousand disclosed in the consolidated statement of cash flows result mainly from repayment of PLN 132 818 thousand of the loans granted by the European Investment Bank by the Parent. Issuance of debt securities Proceeds from issue of debt securities of PLN 3 653 234 thousand result from the issuance of long-term unsecured bonds in the amount of PLN 1 750 000 thousand by the Company in 2014 under the Bond Issue Scheme of July 2013, the issue of Tranche E short-term bonds in the amount of PLN 300 000 thousand and long-term bonds issued under the Company’s agreement with Bank Gospodarstwa Krajowego in the amount of PLN 900 000 thousand. Moreover, in December 2014, TAURON Sweden Energy AB (publ), a subsidiary, issued long-term bonds with the par value of EUR 168 000 thousand and the issue value of EUR 166 572 thousand (PLN 703 234 thousand). The above transactions have been described in detail in Note 35.2 hereto. Redemption of debt securities Expenditure on redemption of debt securities of PLN 1 148 200 thousand result from the Parent’s early redemption of Tranche A bonds in the amount of PLN 848 200 thousand in 2014 and redemption of Tranche E short-term bonds in the amount of PLN 300 000 thousand, as discussed in detail in Note 35.2 to these consolidated financial statements. Interest paid During the year ended 31 December 2014 the total value of interest paid by the Group in relation to loans, borrowings, debt securities (along with the hedges realized from IRS) and finance leases amounted to PLN 319 667 thousand. The Group’s consolidated statement of cash flows discloses borrowing costs capitalized in the current period for asset financing as expenditure for acquisition of property, plant and equipment and intangible assets in cash flows from investing activities. Acquisition of non-controlling interests Expenditure on acquisition of non-controlling interest of PLN 125 402 thousand resulted primarily from the Parent’s payment of a portion of the price, i.e. PLN 77 500 thousand, for the acquisition of shares in a subsidiary TAURON Wydobycie S.A. from Kompania Węglowa S.A., as discussed in detail in Note 34 to these consolidated financial statements and allocation of PLN 26 897 thousand for redemption of treasury shares by TAURON Ciepło Sp. z o.o.
(1 148 200)
Dividends paid to equity holders of the parent 33

33. Dividends paid and proposed

Year ended 31 December 2014 Year ended 31 December 2013
Dividends paid in the period
Dividends paid throughout the year by subsidiaries (1 233) (8 047)
Final dividends paid by the parent (332 984) (350 510)
Total dividends (334 217) (358 557)
  By the date of approval of these consolidated financial statements for publication, no decision had been taken concerning dividend payment from profit for 2014 for the Parent. Dividend payment restrictions are described in Note 31.4 to these consolidated financial statements. On 15 May 2014, the Ordinary General Shareholders’ Meeting of the Company adopted a resolution to allocate PLN 332 984 thousand to dividend payment to the Company’s shareholders (PLN 0.19 per share). The dividend was paid out from the net profit generated by the Company in 2013, which amounted to PLN 1 688 972 thousand. The record date was set at 14 August 2014 and the payment date at 4 September 2014. On 16 May 2013, the Ordinary General Shareholders’ Meeting adopted a resolution to allocate PLN 350 510 thousand to dividend payment to the Company’s shareholders (PLN 0.20 per share). The dividend was paid out from the net profit generated by the Company in 2012, which amounted to PLN 1 435 188 thousand. The record date was set at 3 June 2013 and the payment date at 18 June 2013. Dividend per share paid out by the Parent for individual years was the following:  
Year ended

31 December 2014

Year ended

31 December 2013

Dividend paid per share (PLN) 0,19 0,20
   
(332 984) (350 510)
Dividends paid to non-controlling interests 33

33. Dividends paid and proposed

Year ended 31 December 2014 Year ended 31 December 2013
Dividends paid in the period
Dividends paid throughout the year by subsidiaries (1 233) (8 047)
Final dividends paid by the parent (332 984) (350 510)
Total dividends (334 217) (358 557)
  By the date of approval of these consolidated financial statements for publication, no decision had been taken concerning dividend payment from profit for 2014 for the Parent. Dividend payment restrictions are described in Note 31.4 to these consolidated financial statements. On 15 May 2014, the Ordinary General Shareholders’ Meeting of the Company adopted a resolution to allocate PLN 332 984 thousand to dividend payment to the Company’s shareholders (PLN 0.19 per share). The dividend was paid out from the net profit generated by the Company in 2013, which amounted to PLN 1 688 972 thousand. The record date was set at 14 August 2014 and the payment date at 4 September 2014. On 16 May 2013, the Ordinary General Shareholders’ Meeting adopted a resolution to allocate PLN 350 510 thousand to dividend payment to the Company’s shareholders (PLN 0.20 per share). The dividend was paid out from the net profit generated by the Company in 2012, which amounted to PLN 1 435 188 thousand. The record date was set at 3 June 2013 and the payment date at 18 June 2013. Dividend per share paid out by the Parent for individual years was the following:  
Year ended

31 December 2014

Year ended

31 December 2013

Dividend paid per share (PLN) 0,19 0,20
   
(1 233) (8 047)
Interest paid 43.2

43.2. Cash flows from financing activities

Loans and borrowings repaid Expenditure on repayment of loans and borrowings of PLN 169 971 thousand disclosed in the consolidated statement of cash flows result mainly from repayment of PLN 132 818 thousand of the loans granted by the European Investment Bank by the Parent. Issuance of debt securities Proceeds from issue of debt securities of PLN 3 653 234 thousand result from the issuance of long-term unsecured bonds in the amount of PLN 1 750 000 thousand by the Company in 2014 under the Bond Issue Scheme of July 2013, the issue of Tranche E short-term bonds in the amount of PLN 300 000 thousand and long-term bonds issued under the Company’s agreement with Bank Gospodarstwa Krajowego in the amount of PLN 900 000 thousand. Moreover, in December 2014, TAURON Sweden Energy AB (publ), a subsidiary, issued long-term bonds with the par value of EUR 168 000 thousand and the issue value of EUR 166 572 thousand (PLN 703 234 thousand). The above transactions have been described in detail in Note 35.2 hereto. Redemption of debt securities Expenditure on redemption of debt securities of PLN 1 148 200 thousand result from the Parent’s early redemption of Tranche A bonds in the amount of PLN 848 200 thousand in 2014 and redemption of Tranche E short-term bonds in the amount of PLN 300 000 thousand, as discussed in detail in Note 35.2 to these consolidated financial statements. Interest paid During the year ended 31 December 2014 the total value of interest paid by the Group in relation to loans, borrowings, debt securities (along with the hedges realized from IRS) and finance leases amounted to PLN 319 667 thousand. The Group’s consolidated statement of cash flows discloses borrowing costs capitalized in the current period for asset financing as expenditure for acquisition of property, plant and equipment and intangible assets in cash flows from investing activities. Acquisition of non-controlling interests Expenditure on acquisition of non-controlling interest of PLN 125 402 thousand resulted primarily from the Parent’s payment of a portion of the price, i.e. PLN 77 500 thousand, for the acquisition of shares in a subsidiary TAURON Wydobycie S.A. from Kompania Węglowa S.A., as discussed in detail in Note 34 to these consolidated financial statements and allocation of PLN 26 897 thousand for redemption of treasury shares by TAURON Ciepło Sp. z o.o.
(273 392) (229 431)
Acquisition of non-controlling interests 43.2

43.2. Cash flows from financing activities

Loans and borrowings repaid Expenditure on repayment of loans and borrowings of PLN 169 971 thousand disclosed in the consolidated statement of cash flows result mainly from repayment of PLN 132 818 thousand of the loans granted by the European Investment Bank by the Parent. Issuance of debt securities Proceeds from issue of debt securities of PLN 3 653 234 thousand result from the issuance of long-term unsecured bonds in the amount of PLN 1 750 000 thousand by the Company in 2014 under the Bond Issue Scheme of July 2013, the issue of Tranche E short-term bonds in the amount of PLN 300 000 thousand and long-term bonds issued under the Company’s agreement with Bank Gospodarstwa Krajowego in the amount of PLN 900 000 thousand. Moreover, in December 2014, TAURON Sweden Energy AB (publ), a subsidiary, issued long-term bonds with the par value of EUR 168 000 thousand and the issue value of EUR 166 572 thousand (PLN 703 234 thousand). The above transactions have been described in detail in Note 35.2 hereto. Redemption of debt securities Expenditure on redemption of debt securities of PLN 1 148 200 thousand result from the Parent’s early redemption of Tranche A bonds in the amount of PLN 848 200 thousand in 2014 and redemption of Tranche E short-term bonds in the amount of PLN 300 000 thousand, as discussed in detail in Note 35.2 to these consolidated financial statements. Interest paid During the year ended 31 December 2014 the total value of interest paid by the Group in relation to loans, borrowings, debt securities (along with the hedges realized from IRS) and finance leases amounted to PLN 319 667 thousand. The Group’s consolidated statement of cash flows discloses borrowing costs capitalized in the current period for asset financing as expenditure for acquisition of property, plant and equipment and intangible assets in cash flows from investing activities. Acquisition of non-controlling interests Expenditure on acquisition of non-controlling interest of PLN 125 402 thousand resulted primarily from the Parent’s payment of a portion of the price, i.e. PLN 77 500 thousand, for the acquisition of shares in a subsidiary TAURON Wydobycie S.A. from Kompania Węglowa S.A., as discussed in detail in Note 34 to these consolidated financial statements and allocation of PLN 26 897 thousand for redemption of treasury shares by TAURON Ciepło Sp. z o.o.
(125 402) (37 021)
Subsidies received 63 139 89 024
Other (8 820) (9 303)
Net cash from (used in) financing activities   1 635 749 (249 100)
Net increase / (decrease) in cash and cash
equivalents
  866 923 (350 506)
Net foreign exchange difference (177) (1 858)
Cash and cash equivalents at the beginning of the period 28

28. Cash and cash equivalents

Cash in bank bears a floating interest rate determined based on interest on overnight deposits. Short-term deposits are made for various periods, from one day to one month, depending on the Group’s current demand for cash and bear interest that is calculated according to applicable interest rates. The balance of cash and cash equivalents disclosed in the statement of cash flows includes:  
As at
31 December 2014
As at
31 December 2013
Cash at bank and in hand 410 082 153 103
Short-term deposits (up to 3 months) 1 009 991 482 206
Other 836 1 600
Total cash and cash equivalents presented in the statement of financial position, of which: 1 420 909 636 909
 restricted cash 116 568 121 129
Bank overdraft (11 918) (93 645)
Foreign exchange and other differences (920) (2 116)
Total cash and cash equivalents presented in the statement of cash flows 1 408 071 541 148
  The difference between the balance of cash recognized in the statement of financial position and that disclosed in the statement of cash flows results mainly from bank overdrafts and exchange gains and losses on measurement of cash on currency accounts. The overdraft balance decreased mainly because as at 31 December 2014 the Group did not use any external financing in the form of cash pool overdrafts, while as at 31 December 2013 the financing amounted to PLN 88 515 thousand. Balance of restricted cash includes mainly cash on the account used for settling electricity trading on the Polish Power Exchange, i.e. Towarowa Giełda Energii S.A., of PLN 37 341 thousand held by the Parent and cash on a bank account for bid bonds and deposits of PLN 72 138 thousand.
541 148 891 654
Cash and cash equivalents at the end of the period, of which: 28

28. Cash and cash equivalents

Cash in bank bears a floating interest rate determined based on interest on overnight deposits. Short-term deposits are made for various periods, from one day to one month, depending on the Group’s current demand for cash and bear interest that is calculated according to applicable interest rates. The balance of cash and cash equivalents disclosed in the statement of cash flows includes:  
As at
31 December 2014
As at
31 December 2013
Cash at bank and in hand 410 082 153 103
Short-term deposits (up to 3 months) 1 009 991 482 206
Other 836 1 600
Total cash and cash equivalents presented in the statement of financial position, of which: 1 420 909 636 909
 restricted cash 116 568 121 129
Bank overdraft (11 918) (93 645)
Foreign exchange and other differences (920) (2 116)
Total cash and cash equivalents presented in the statement of cash flows 1 408 071 541 148
  The difference between the balance of cash recognized in the statement of financial position and that disclosed in the statement of cash flows results mainly from bank overdrafts and exchange gains and losses on measurement of cash on currency accounts. The overdraft balance decreased mainly because as at 31 December 2014 the Group did not use any external financing in the form of cash pool overdrafts, while as at 31 December 2013 the financing amounted to PLN 88 515 thousand. Balance of restricted cash includes mainly cash on the account used for settling electricity trading on the Polish Power Exchange, i.e. Towarowa Giełda Energii S.A., of PLN 37 341 thousand held by the Parent and cash on a bank account for bid bonds and deposits of PLN 72 138 thousand.
1 408 071 541 148
restricted cash 28

28. Cash and cash equivalents

Cash in bank bears a floating interest rate determined based on interest on overnight deposits. Short-term deposits are made for various periods, from one day to one month, depending on the Group’s current demand for cash and bear interest that is calculated according to applicable interest rates. The balance of cash and cash equivalents disclosed in the statement of cash flows includes:  
As at
31 December 2014
As at
31 December 2013
Cash at bank and in hand 410 082 153 103
Short-term deposits (up to 3 months) 1 009 991 482 206
Other 836 1 600
Total cash and cash equivalents presented in the statement of financial position, of which: 1 420 909 636 909
 restricted cash 116 568 121 129
Bank overdraft (11 918) (93 645)
Foreign exchange and other differences (920) (2 116)
Total cash and cash equivalents presented in the statement of cash flows 1 408 071 541 148
  The difference between the balance of cash recognized in the statement of financial position and that disclosed in the statement of cash flows results mainly from bank overdrafts and exchange gains and losses on measurement of cash on currency accounts. The overdraft balance decreased mainly because as at 31 December 2014 the Group did not use any external financing in the form of cash pool overdrafts, while as at 31 December 2013 the financing amounted to PLN 88 515 thousand. Balance of restricted cash includes mainly cash on the account used for settling electricity trading on the Polish Power Exchange, i.e. Towarowa Giełda Energii S.A., of PLN 37 341 thousand held by the Parent and cash on a bank account for bid bonds and deposits of PLN 72 138 thousand.
116 568 121 129

 

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