Consolidated statement of financial position

Note As at
31 December 2014
As at
31 December 2013
ASSETS
Non-current assets
Property, plant and equipment 18

18. Property, plant and equipment

Year ended 31 December 2014
Land Buildings, premises and civil engineering structures Plant and machinery Other Assets under construction Property, plant and equipment, total
COST
Opening balance 114 112 17 385 870 14 909 785 738 450 1 213 948 34 362 165
Direct purchase 107 32 2 818 951 2 819 090
Transfer of assets under construction 4 511 1 409 386 1 208 791 96 797 (2 719 485)
Sale, disposal (615) (6 231) (13 159) (13 421) (37) (33 463)
Liquidation (44 419) (196 767) (9 842) (251 028)
Received free of charge 10 14 620 748 72 15 450
Transfers to assets held for sale (80) (488 270) (793 781) (868) (21 192) (1 304 191)
Contribution (179 107) (298 531) (2 773) (60 296) (540 707)
Overhaul expenses 205 12 612 91 867 104 684
Write-off of discontinued investments (1 733) (1 733)
Items generated internally 47 445 47 445
Cost of disassembly of wind farms and
decommissioning of mines
86 061 3 145 89 206
Other movements (796) 17 341 (13 863) 154 (5 205) (2 369)
Foreign exchange differences from translation of foreign entities 4 6 10
Closing balance 117 142 18 195 456 14 819 091 808 607 1 364 263 35 304 559
ACCUMULATED DEPRECIATION  
Opening balance (645) (4 360 059) (4 490 207) (377 855) (5 760) (9 234 526)
Depreciation for the period (802 467) (840 332) (85 093) (1 727 892)
Increase of impairment (135) (50 575) (32 172) (2 115) (22) (85 019)
Decrease of impairrment 322 12 794 20 064 1 164 459 34 803
Sale, disposal 2 427 11 361 11 608 25 396
Liquidation 33 287 190 786 8 890 232 963
Transfers to assets held for sale 45 919 43 679 836 90 434
Contribution 70 684 136 587 1 989 209 260
Other movements (1 673) 2 769 (129) 967
Foreign exchange differences from translation of foreign entities (2) (1) (3)
Closing balance (458) (5 049 663) (4 957 467) (440 706) (5 323) (10 453 617)
NET CARRYING AMOUNT AT THE BEGINNING OF THE PERIOD 113 467 13 025 811 10 419 578 360 595 1 208 188 25 127 639
NET CARRYING AMOUNT AT THE END OF THE PERIOD 116 684 13 145 793 9 861 624 367 901 1 358 940 24 850 942
  Year ended 31 December 2013
Land Buildings, premises and civil engineering structures Plant and machinery Other Assets under construction Property, plant and equipment, total
COST
Opening balance 72 024 15 389 230 12 633 180 641 240 2 034 339 30 770 013
Direct purchase 28 344 3 499 017 3 499 389
Transfer of assets under construction 38 834 1 961 089 2 374 464 112 884 (4 487 271)
Sale, disposal (62) (3 598) (17 135) (10 214) (47) (31 056)
Liquidation (12) (60 393) (94 406) (7 505) (162 316)
Received free of charge 28 793 126 28 919
Transfers to assets held for sale (4 104) (146) 33 197 (4 020)
Received for use under rental, lease or similar agreements 36 169 139 36 308
Overhaul expenses 200 2 221 130 063 132 484
Write-off of discontinued investments (7 014) (7 014)
Items generated internally 39 408 39 408
Cost of disassembly of wind farms and  decommissioning of mines 39 471 4 600 44 071
Other movements 3 328 (987) 6 730 1 695 5 256 16 022
Foreign exchange differences from translation of foreign entities (16) (27) (43)
Closing balance 114 112 17 385 870 14 909 785 738 450 1 213 948 34 362 165
ACCUMULATED DEPRECIATION     
Opening balance (645) (3 596 281) (3 558 914) (306 975) (6 555) (7 469 370)
Depreciation for the period (770 276) (804 655) (83 292) (1 658 223)
Increase of impairment (39 191) (227 181) (1 473) (267 845)
Decrease of impairment 94 225 29 795 1 143
Sale, disposal 785 14 809 7 837 23 431
Liquidation 41 704 87 327 6 257 135 288
Transfers to assets held for sale 2 683 132 (15) 2 800
Other movements 423 (1 959) (224) (1 760)
Foreign exchange differences from translation of foreign entities 9 1 10
Closing balance (645) (4 360 059) (4 490 207) (377 855) (5 760) (9 234 526)
NET CARRYING AMOUNT AT THE BEGINNING OF THE PERIOD 71 379 11 792 949 9 074 266 334 265 2 027 784 23 300 643
NET CARRYING AMOUNT AT THE END OF THE PERIOD 113 467 13 025 811 10 419 578 360 595 1 208 188 25 127 639
  Recognition and derecognition of impairment losses for property, plant and equipment had the following impact on operating segment performance.  
Year ended 31 December 2014 Year ended 31 December 2013
Generation Distribution Other Total Generation Distribution Other Total
Increase of impairment (72 441) (12 556) (22) (85 019) (262 396) (5 449) (267 845)
Decrease of impairrment 33 865 929 9 34 803 208 932 3 1 143
Total impact on the profit for the period (38 576) (11 627) (13) (50 216) (262 188) (4 517) 3 (266 702)
  In the year ended 31 December 2014 the Group has purchased  property, plant and equipment in the amount of PLN 2 819 090 thousand. Major purchases were related to investments in the following operating segments:  
Purchase of property, plant and equipment by segment Year ended 31 December 2014 Year ended 31 December 2013
Distribution 1 883 562 2 031 472
Generation 298 733 392 425
Heat 288 933 154 594
Mining 185 682 251 268
Renewable sources of energy 115 938 606 915
  Największe zadania inwestycyjne realizowane przez Grupę w roku obrotowym 2014 opisane zostały w punkcie 1.4.3.2. Sprawozdania Zarządu z działalności Grupy Kapitałowej za rok 2014.   Key investment projects carried out by the Group in the financial year 2014 have been presented in Section 1.4.3.2. of the Management Board’s Report on the activities of the Capital Group for 2014. The carrying amount of plant and machinery used as at 31 December 2014 based on finance lease and hire purchase contracts was PLN 45 126 thousand (as at 31 December 2013, it was PLN 51 677 thousand). Assets used based on lease and hire purchase contracts are pledged to secure related liabilities due to finance lease and hire purchase contracts or are property of the lessor. The carrying amount of buildings and structures used as at 31 December 2014 based on finance lease and hire purchase contracts was PLN 50 857 thousand (as at 31 December 2013, it was PLN 55 786 thousand). Assets used based on lease and hire purchase contracts are pledged to secure related liabilities due to finance lease and hire purchase contracts or are property of the lessor. In 2014, the Group capitalized interest in the value of fixed assets under construction and intangible assets not commissioned for use, of PLN 46 275 thousand (as compared to PLN 73 138 thousand in 2013). Lower capitalization results from commissioning major investment projects in the second half of 2013: regaining full production capacity in Elektrociepłownia Bielsko-Biała and construction of Wicko and Marszewo wind farms. As a result, the capitalization of borrowing costs on these investments has been discontinued. Impairment tests Taking into account the indications that the market value of the Company’s net assets has recently been below their carrying amount as well as the general situation in the power sector, the Group tested its property, plant and equipment for impairment as at 31 December 2014. The tests required estimating the value in use of cash generating units, based on their future cash flows discounted to the current value with the discount rate. The impairment test for property, plant and equipment was carried out the level of individual companies, except for:
  • TAURON Wytwarzanie S.A. – where cash generating units were identified based on the cost nature and analysis of the applied methods of contracting and allocating generation from particular generation units. Consequently, the test was performed for cash-generating units understood as generation units or groups of generation units;
  • TAURON Ekoenergia Sp. z o.o. – where water power plant and wind power plants were tested for impairment separately, and
  • TAURON Ciepło Sp. z o.o. – where the activities related to generation of heat and electricity in professional and systemic thermal-electric power plants were separated as well as transmission and distribution of heat (former thermal energetics companies)..
Key assumptions made to estimate the value in use of property, plant and equipment:
  • The adopted price path of power coal, other coal sizes and gaseous fuels;
  • The adopted electricity wholesale price path for the years 2015 - 2024, taking into account such factors as the effect of the balance of the market supply and demand for electricity, costs of fuel as well as costs of acquiring CO₂ emission allowances;
  • Emission limits for generating electricity specified in the regulation of the Ministry of Economy, adjusted by capital expenditure incurred and the limits for heat generation compliant with the regulation of the Council of Ministers, adjusted by the level of operations, i.e. generation of heat;
  • Green, red and yellow energy production volumes depending on the production capacity, along with the price path for individual energy certificates;
  • Regulated revenue generated by distribution companies, ensuring coverage of reasonable costs and a reasonable level of return on capital. The return on capital is conditional on the Regulatory Asset Value;
  • The adopted electricity retail price path based on the wholesale price of black energy, taking into account the costs of excise duty, the obligation to surrender energy certificates as well as an appropriate level of margin;
  • Sales volumes taking into account GDP growth and increased market competition;
  • Tariff revenue generated by heat companies, ensuring coverage of reasonable costs and a reasonable level of return on capital;
  • Maintenance of the production capacity of the existing non-current assets as a result of replacement investments;
  • The level of the weighted average cost of capital (WACC) during the projection period, as used in the calculations, ranges from 7.70% to 10.03% in nominal terms before tax.
    The impairment test of assets carried out as at 31 December 2014 showed that a portion of assets in the Generation segment related to Elektrownia Stalowa Wola, covering in particular shared assets, will not be used as much as planned, becasue the planned extention of the unit generating electricity using renewable sources has not been carried out, hence an additional impairment loss of PLN 54 901 thousand should be recognized. The recoverable amount for this group of assets corresponds to the value in use, which was estimated using an after-tax discount rate of 7.37%. Impairment loss has been charged to cost of sales. As at 31 December 2013 the impairment loss on property, plant and equipment in ineffective generation units amounted to PLN 262 187 thousand.
24 850 942 25 127 639
Goodwill 19

19. Goodwill

As at the acquisition date the goodwill acquired is allocated to each cash-generating unit that derive benefits from synergy effects. Operating segment, as defined in IFRS 8 Operating Segments, is the lowest level in the Group with attributable goodwill and with goodwill monitored for internal management purposes in the Group.
Goodwill in segment As at 31 December 2014 As at 31 December 2013
Mining 13 973 13 973
Renewable sources of energy 51 902
Distribution 25 602 25 602
Heat 155 580 155 580
Total 195 155 247 057
  As at 31 December 2014, a carrying amount impairment test was performed for the net assets increased by goodwill for individual operating segments: Mining, Renewable Sources of Energy, Distribution and Heat. Goodwill in the Renewable Sources of Energy segment of PLN 51 902 thousand was reclassified in relation to the planned disposal of wind farms to a disposal group, classified as held for sale in line with IFRS 5 (detailed information available in Note 29). The recoverable amount in each segment was determined based on the value in use. The key assumptions affecting the estimated value in use of the tested segments are: Mining
  • The adopted price path of power coal and other coal sizes;
  • The adopted electricity retail price path based on the wholesale price of black energy, taking into account the costs of excise duty, the obligation to surrender energy certificates as well as an appropriate level of margin;
  • Maintenance of the production capacity of the existing non-current assets as a result of replacement investments.
Renewable Sources of Energy
  • Green energy generation volume in line with generation capacity and a price path for electricity selected based on the wholesale price for black energy from the preceding year and prices of certificates in accordance with regulations in force;
  • Maintenance of the production capacity of the existing non-current assets as a result of replacement investments.
Distribution
  • Regulated revenue generated by distribution companies, ensuring coverage of reasonable costs and a reasonable level of return on capital. The return on capital is conditional on the Regulatory Asset Value;
  • Maintenance of the electricity distribution capacity of the existing non-current assets as a result of replacement investments.
Heat
  • Tariff revenue generated by heat companies, ensuring coverage of reasonable costs and a reasonable level of return on capital;
  • Green, red and yellow energy production volumes depending on the production capacity, along with the price path for individual energy certificates;
  • Emission limits for generating electricity and heat in line with regulations of the Council of Ministers;
  • Maintenance of the heat generation, distribution and sales capacity of the existing non-current assets as a result of replacement investments.
The assumptions were also used to estimate the value in use of other intangible assets. The test was performed based on the present value of estimated operating cash flows. The calculations were based on detailed projections for the period from 2015 to 2024 and the estimated residual value. The basis for cash flow calculations is the planned EBIT for 2015-2024 and depreciation/amortization for this period. The EBIT value results from the long-term plan of the Group companies covering the period until 2024. For purposes of the impairment test in the Renewable Sources of Energy and Heat segments detailed projections covering the whole period of their operations were used and the residual value was not determined. Using projections longer than five years results in particular from the long-term nature of investment processes in the power industry. The macroeconomic and sector assumptions serving as the basis for projections are updated as frequently as any indications for their modification are observed on the market. Projections also take into account changes in the legal environment known as at the date of the test. The values determined reflect the past experience and are consistent with information from external sources. The discount rate used for calculation reflects the weighted average cost of capital (WACC), taking into account the risk-free rate determined by reference to the yield on 10-year treasury bonds (4.3%) and the risk premium for operations appropriate for the power industry (5.5%). The growth rate used for extrapolation of projected cash flows beyond the detailed planning period is at the level of 2.5% and it corresponds to the estimated long-term inflation rate. Discount rates used for calculation of the value in use for each segment, before tax:
  • Mining:03 %
  • Renewable Sources of Energy:91 %
  • Distribution:26 %
  • Heat:87 %
Sensitivity analyses conducted reveal that the projected wholesale prices of electricity and the adopted discount rates are the key factors exerting an effect on the estimated value in use of cash generating units. According to the Company’s forecasts, no rationally possible and highly probable change in any key assumption made in the analyses will decrease the recoverable amount of the net assets plus goodwill to a level below their carrying amount. The results of the test did not indicate the necessity to recognize any impairment losses on goodwill of any of the cash generating units.
195 155 247 057
Intangible assets 20

20. Non-current intangible assets

Year ended 31 December 2014
Development expenses Perpetual usufruct Software, concessions, patents, licenses and similar items Energy certificates Greenhouse gas emission allowances Other intangible assets Intangible assets not made available for use Intangible assets,
total
COST
Opening balance 4 030 810 712 379 236 20 250 34 528 109 979 84 633 1 443 368
Direct purchase 175 152 946 226 566 118 198 497 885
Transfer of intangible assets not made available for use 5 452 105 783 43 677 (154 912)
Sale, disposal (1 389) (1 389)
Liquidation (77) (7 504) (240) (7 821)
Produced internally 50384 50 384
Reclassifications (16 183) 4009 (12 174)
Contribution (22 178) (3 704) (25 882)
Transfers to assets held for sale (2 837) (173) (3 010)
Other movements 640 (13) 1293 527 5515 7 962
Foreign exchange differences from translation of foreign entities 12 2 14
Closing balance 4 670 789 670 475 291 207 397 265 103 153 770 53 436 1 949 337
ACCUMULATED AMORTIZATION                
Opening balance (3 442) (14 449) (242 012) (23 460) (283 363)
Amortization for the period (380) (56 304) (12 411) (69 095)
Increase of impairment (3 083) (88) (3 171)
Decrease of impairment 2235 116 2 351
Sale, disposal
Liquidation 7454 236 7 690
Contribution 2051 2 051
Other movements (1 158) (1 158)
Foreign exchange differences from translation of foreign entities (8) (8)
Closing balance (3 822) (15 297) (289 949) (35 635) (344 703)
NET CARRYING AMOUNT AT THE BEGINNING OF THE PERIOD 588 796 263 137 224 20 250 34 5 28 86 519 84 633 1 160 005
NET CARRYING AMOUNT AT THE END OF THE PERIOD 848 774 373 185 342 207 397 265 103 118 135 53 436 1 604 634
  Year ended 31 December 2013
Development expenses Perpetual usufruct Software, concessions, patents, licenses and similar items Energy certificates Greenhouse gas emission allowances Other intangible assets Intangible assets not made available for use Intangible assets, total
COST                
Opening balance 3 898 812 667 345 194 95 874 91 351 39 048 1 388 032
Direct purchase 20 250 235 139 108 135 363 524
Transfer of intangible assets not made available for use 5 043 38 196 18 103 (61 342)
Sale, disposal (2 286) (2 286)
Liquidation (382) (5 878) (12) (6 272)
Reclassifications (296 200) (296 200)
Transfers to assets held for sale (889) (889)
Other movements 132 (3 441) 1779 (285) 537 (1 200) (2 478)
RForeign exchange differences from translation of foreign entities (55) (8) (63)
Closing balance 4 030 810 712 379 236 20 250 34 528 109979 84 633  1 443 368
ACCUMULATED AMORTIZATION                
Opening balance (3 263) (573) (189 764) (12 176) (205 776)
Amortization for the period (155) (57 711) (11 329) (69 195)
Increase of impairment (24) (13 877) (231) (14 132)
Decrease of impairment
Sale, disposal
Liquidation 5539 5 5 544
Other movements 1 132 40 173
Foreign exchange differences from translation of foreign entities 23 23
Closing balance (3 442) (14 449) (242 012) (23 460) (283 363)
NET CARRYING AMOUNT AT THE BEGINNING OF THE PERIOD 635 812 094 155 430 95 874 79 157 39 048 1 182 256
NET CARRYING AMOUNT AT THE END OF THE PERIOD 588 796 263 137 224 20 250 34 528 86 519 84 633  1 160 005
  Impairment tests Taking into account the indications that the market value of the Company’s net assets has recently been below their carrying amount as well as the general situation in the power sector, the Group tested its intangible assets for impairment as at 31 December 2014. The value in use of intangible assets was estimated using the assumptions adopted to goodwill testing, as described in Note 19.
1 604 634 1 160 005
Investments in joint ventures 21

21. Shares in joint ventures

Elektrociepłownia Stalowa Wola S.A.                  Elektrociepłownia Stalowa Wola S.A. is a special purpose vehicle set up in 2010 on the initiative of TAURON Polska Energia S.A. and PGNiG S.A. As a joint venture it is accounted for using the equity method in the consolidated financial statements. TAURON Polska Energia S.A. holds an indirect interest amounting to 50% in the share capital of this company and 50% in its governing body through TAURON Wytwarzanie S.A. Under the agreements of 20 June 2012 among PGNiG S.A., TAURON Polska Energia S.A. and Elektrociepłownia Stalowa Wola S.A., TAURON Polska Energia S.A. granted loans to Elektrociepłownia Stalowa Wola S.A. with a view to satisfying the necessary conditions for provision of funding to Elektrociepłownia Stalowa Wola S.A. by the European Bank for Reconstruction and Development and the European Investment Bank. The outstanding amounts of these loans as at the balance sheet date have been presented below:  
As at 31 December 2014 As at 31 December 2013
Principal Interest Principal Interest
Subordinated loan 177 000 21 331 177 000 12 310
VAT loan 5 850 12
Total loans granted to Elektrociepłownia Stalowa Wola S.A., of which: 182 850 21 343 177 000 12 310
Non-current 177 000 21 331 177 000 12 310
Current 5 850 12
  As at the end of the reporting period, the amount disbursed under the subordinated loan agreement was PLN 177 000 thousand, i.e. the maximum contractual amount. The loan with interest due is to be finally repaid no later than by the end of 2032. In the year ended 31 January 2014, the interest income due to loans granted reached PLN 9 139 thousand. The Group presented interest income due to loans granted of Elektrociepłownia Stalowa Wola S.A. in the portion corresponding to unrelated investors’ interests in the joint venture in the consolidated financial statements. Elektrownia Blachownia Nowa Sp. z o.o. On 5 September 2012 TAURON Wytwarzanie S.A., subsidiary, and KGHM Polska Miedź S.A. established a special purpose vehicle named Elektrownia Blachownia Nowa Sp. z o.o. with the registered address in Kędzierzyn Koźle. The Company was set up to perform a comprehensive investment project including preparation, construction and operation of a combined cycle gas and steam unit with the capacity of ca. 850 MWe on the land of TAURON Wytwarzanie S.A. – Oddział Elektrownia Blachownia. As a joint venture Elektrownia Blachownia Nowa Sp. z o.o. is accounted for in the consolidated financial statements using the equity method. TAURON Polska Energia S.A. holds an indirect interest amounting to 50% in the share capital of this company and 50% in its governing body through TAURON Wytwarzanie S.A. On 30 December 2013 TAURON Polska Energia S.A., KGHM Polska Miedź S.A. and TAURON Wytwarzanie S.A. concluded an agreement, based on which the construction of gas and steam power unit in Elektrownia Blachownia Nowa Sp. z o.o. has been suspended. The decision resulted from the current situation in the electricity and gas market entailing higher investment risk, which made the entities review and optimize the project. In the year ended 31 December 2014 no further developments in the project implementation occurred. The parties undertook to ensure further business operations of Elektrownia Blachownia Nowa Sp. z o.o., securing deliverables provided thus far, in particular updating project documentation and ensuring on-going monitoring of the energy market and regulatory environment in view of the possibility to restart project performance as soon as possible.  The parties agreed that the decision to recommence the project will be adopted in the form of a separate agreement which is expected to be concluded by 31 December 2016.   TAMEH HOLDING Sp. z o.o. and subsidiaries On 9 July 2014, TAURON Polska Energia S.A. established TAMEH HOLDING Sp. z o.o. and TAMEH POLSKA Sp. z o.o., both companies registered in Dąbrowa Górnicza. The entities were set up to carry out a shared project of the TAURON Group and ArcelorMittal Group. On 11 August 2014, the TAURON Group entered into an agreement with the ArcelorMittal Group. The shareholders agreement states that TAMEH HOLDING Sp. z o.o. will carry out investment and operational projects related to industrial power sector. The agreement was concluded for the period of 15 years with possible term extension. On 26 November 2014 a resolution concerning an increase in the issued capital of TAMEH POLSKA Sp. z o.o. was adopted. 96.83% of shares in the increased capital of TAMEH POLSKA Sp. z o.o. was taken by the Company and covered with a contribution-in-kind of an organized part of the following enterprises: TAURON Wytwarzanie S.A. (Elektrownia Blachownia) and TAURON Ciepło Sp. z o.o. (Zakład Wytwarzania Nowa). The remaining portion of shares was taken up by companies from the ArcelorMittal Group and covered with a contribution-in-kind in the form an organized part of the enterprise of ArcelorMittal Poland S.A. (Elektrociepłownia Kraków). On 10 December 2014, the spin-off of TAURON Wytwarzanie S.A. and TAURON Ciepło Sp. z o.o. in the form of separation of organized parts of enterprises contributed to TAMEH POLSKA Sp. z o.o. was registered. As a result, the issued capital of TAURON Ciepło Sp. z o.o. was reduced from PLN 1 375 226 thousand to PLN 1 098 349 thousand, i.e. by PLN 276 877 thousand. The spin-off of TAURON Wytwarzanie S.A. did not entail a reduction in the issued capital. On 11 December 2014, the Company sold 50% of shares in TAMEH HOLDING Sp. z o.o. with the value of PLN 41 thousand to ArcelorMittal Poland S.A. On the same day, the Extraordinary Shareholders’ Meeting of TAMEH HOLDING Sp. z o.o. adopted a resolution to increase the issued capital of the entity from PLN 5 thousand to PLN 658 681 thousand. On 19 December 2014, the increase in the issued capital of TAMEH HOLDING Sp. z o.o. was registered. TAURON Polska Energia S.A. took up 50% of shares in the increased capital of TAMEH HOLDING Sp. z o.o. in return for contributing shares held in TAMEH POLSKA Sp. z o.o. At the same time, ArcelorMittal Group companies took up 50% of the shares, having contributed shares held in TAMEH POLSKA Sp. z o.o. and ArcelorMittal Energy Ostrava s.r.o. (currently: TAMEH Czech s.r.o.) The value of shares in TAMEH HOLDING Sp. z o.o. was PLN 374 883 thousand. The purchase price for shares taken up was increased by acquisition costs of PLN 873 thousand. The net assets transferred by the Group amounted to PLN 335 918 thousand. Following the transactions concluded, each capital group holds 50% of shares in TAMEH HOLDING Sp. z o.o.. TAMEH HOLDING Sp. z o.o. holds 100% of shares in TAMEH POLSKA Sp. z o.o. composed of: Zakład Wytwarzania Nowa, Elektrownia Blachownia, Elektrociepłownia in Kraków (EC Kraków) and 100% of shares in TAMEH Czech s.r.o. Investments in joint ventures measured using the equity method as at 31 December 2014 and for the year ended 31 December 2014 have been presented below:  
Elektrociepłownia Stalowa Wola S.A. Elektrownia Blachownia Nowa Sp. z o.o. TAMEH HOLDING Sp. z o.o.* As at
31 December 2014
Non-current assets 973 128 27 351 985 875 1 986 354
Current assets 53 283 36 920 319 756 409 959
Non-current liabilities (-) (900 635) (34 085) (934 720)
Current liabilities (-) (92 570) (59) (433 758) (526 387)
Total net assets 33 206 64 212 837 788 935 206
Share in net assets 16 603 32 106 418 894 467 603
Elimination of transactions with Group companies (11 127) (11 127)
Invetment in joint ventures 5 476 32 106 377 002 414 584
Share in revenue of joint ventures 54 490 17 446 17 990
Share in profit/(loss) of joint ventures
(2 183) 42 1 205 (936)
  * The above information about TAMEH HOLDING Sp. z o.o. and its subsidiaries are of a preliminary nature, because the acquisition of subsidiaries by TAMEH HOLDING Sp. z o.o. has not been finally accounted for.   The investment in joint venture TAMEH HOLDING Sp. z o.o. differs from the share in net assets owned by the Group, as a result of the fact that the purchase price of shares in TAMEH HOLDING Sp. z o.o. was calculated considering fair value of the assets contributed to the joint venture by the companies of ArcelorMittal Group.   Investments in joint-ventures measured using the equity method as at 31 December 2013 and for the year ended 31 December 2013 have been presented below:  
Elektrociepłownia Stalowa Wola S.A. Elektrownia Blachownia Nowa Sp. z o.o. As at

31 December 2013

Non-current assets 728 455 27 710 756 165
Current assets 9 588 36 624 46 212
Non-current liabilities (-) (697  185) (697 185)
Current liabilities (-) (3 203) (64) (3 267)
Total net assets 37 655 64 270 101 925
Share in net assets 18 786 32 064 50 850
Elimination of transactions with Group companies (6 452) (6 452)
Invetment in joint ventures 12 334 32 064 44 398
Share in revenue of joint ventures 110 540 650
Share in profit/(loss) of joint
(2 383) (326) (2 709)
414 584 44 398
Other financial assets 22

22. Other financial assets

As at

31 December 2014

As at

31 December 2013

Shares in unlisted and listed companies 112 396 125 303
Advance payment for acquisition of shares 232 500
Bonds, T-bills and other debt securities 23 622 1 890
Loans granted 35 823 30 831
Other long-term receivables 198 331 189 310
Other long-term receivables 30 530 20 747
Other 4 220 2 463
Total 404 922 603 044
Non-current 377 383 587 166
Current 27 539 15 878
  A decrease in other financial assets results mainly from the settlement of the amount paid to Kompania Węglowa S.A. for the shares acquired in TAURON Wydobycie S.A. in December 2013 (i.e. PLN 232 500 thousand) due to the acquisition of non-controlling interest, in relation to meeting the conditions precedent for the transfer of the title to acquired shares in TAURON Wydobycie S.A.
377 383 587 166
Other non-financial assets 23

23. Other non-current non-financial assets

As at 31 December 2014 As at 31 December 2013
Prepayments for assets under construction and intangible assets 407 845 109 818
Other prepayments 6 564 46 322
Costs of preparing production in hard coal mines 243 534 198 564
Total 657 943 354 704
  The increase in other non-financial assets of PLN 303 239 thousand in the year ended 31 December 2014 results mainly from the fact that TAURON Wytwarzanie S.A. transferred the prepayment of PLN 321 819 thousand for construction of a power unit with the capacity of 910 MW in Elektrownia Jaworzno.  
657 943 354 704
Deferred tax asset 17.3

17.3. Deferred income tax

Deferred income tax results from:  
As at
31 December 2014
As at
31 December 2013
Deferred tax liability
– difference between tax base and carrying amount of fixed and intangible
assets
2 037 038 2 030 622
– difference between tax base and carrying amount of financial assets 21 505 21 551
– different timing of recognition of sales revenue for tax purposes 59 105 36 847
– recognition of estimated revenue from sale of power distribution services 8 326 40 294
– difference between tax base and carrying amount of property rights arising from energy certificates 47 490 29 688
– other 14 487 16 469
Deferred tax liability 2 187 951 2 175 471
Deferred tax assets
– difference between tax base and carrying amount of fixed and intangible
assets
5 620 7 317
– difference between tax base and carrying amount of inventories 5 130 2 748
– power infrastructure received free of charge and received connection fees 62 177 67 401
– provisions 667 464 672 754
– difference between tax base and carrying amount of financial assets 27 323 29 594
– difference between tax base and carrying amount of financial liabilities 20 680 6 239
– valuation of hedging instruments 34 377 30 354
– different timing of recognition of cost of sales for tax purposes 38 632 35 149
– other accrued expenses 3 467 17 647
– tax losses 12 758
– other 15 274 13 250
Deferred tax assets 892 902 882 453
After setting off balances at the level of individual Group companies, deferred tax for the Group is presented as:
Deferred tax asset 62 108 46 039
Deferred tax liability (1 357 157) (1 339 057)
As at 31 December 2014 and as at 31 December 2013 deferred tax asset and deferred tax liability of companies from the Tax Capital Group, described in detail in Note 9.25 hereto, were netted off due to the fact that as of 1 January 2012 these companies have filed combined tax returns. Change in deferred tax liability  
Year ended
31 December 2014
Year ended
31 December 2013
Opening balance 2 175 471 2 160 699
Change in the balance:
corresponding to profit/loss 42 968 14 579
contribution (12 397)
reclassification to disposal group classified as held for sale (18 910)
other changes 819 193
Closing balance 2 187 951 2 175 471
  Change in deferred tax asset  
Year ended
31 December 2014
Year ended
31 December 2013
Opening balance 882 453 817 147
Change in the balance:
corresponding to profit/loss (31 347) 75 084
corresponding to other comprehensive income 68 172 (10 495)
contribution (16 627)
reclassification to disposal group classified as held for sale (11 585)
other changes 1 836 717
Closing balance 892 902 882 453
62 108 46 039
28 162 749 27 567 008
   
Current assets
Intangible assets 24

24. Current intangible assets

Year ended 31 December 2014
Energy certificates Greenhouse gas emission allowances Current intangible assets, total
COST      
Opening balance 695 427 461 123 1 156 550
Direct purchase 554 863 22 794 577 657
Generated internally 269 290 269 290
Cancellation (838 186) (463 362) (1 301 548)
Reclassification 43 524 (12 425) 31 099
Closing balance 724 918 8 130 733 048
ACCUMULATED AMORTIZATION      
Opening balance
Closing balance
NET CARRYING AMOUNT AT THE BEGINNING OF THE PERIOD 695 427 461 123 1 156 550
NET CARRYING AMOUNT AT THE END OF THE PERIOD 724 918 8 130 733 048
   Year ended 31 December 2013
Energy certificates Greenhouse gas emission allowances Current intangible assets, total
COST      
Opening balance 649 473 61 626 711 099
Direct purchase 613 145 173 566 786 711
Generated internally 168 419 168 419
Cancellation (888 413) (70 269) (958 682)
Sales (8 354) (8 354)
Reclassification 161 157 296 200 457 357
Closing balance 695 427 461 123 1 156 550
ACCUMULATED AMORTIZATION      
Opening balance
Closing balance 
NET CARRYING AMOUNT AT THE BEGINNING OF THE PERIOD 649 473 61 626 711 099
NET CARRYING AMOUNT AT THE END OF THE PERIOD 695 427 461 123 1 156 550
733 048 1 156 550
Inventories 25

25. Inventories

As at
31 December 2014
As at
31 December 2013
Historical cost
Raw materials 285 135 337 940
Semi-finished goods and work-in-progress 123 228 117 257
Finished goods 117 798 18 509
Goods for resale 707 1 479
Property rights arising from energy certificates 20 055 84 800
Emission allowances 1 761
Total 548 684 559 985
Write-downs to net realisable value
Raw materials (7 305) (4 829)
Finished goods (12) (169)
Goods for resale (21)
Property rights arising from energy certificates (13 750) (45 763)
Total (21 088) (50 761)
Net realisable value
Raw materials 277 830 333 111
Semi-finished goods and work-in-progress 123 228 117 257
Finished goods 117 786 18 340
Goods for resale 686 1 479
Property rights arising from energy certificates 6 305 39 037
Emission allowances 1 761
Total 527 596 509 224
Movement in write-downs to net realisable value
Opening balance (50 761) (93 313)
Recognition (21 441) (47 868)
Reversal 5 633 90 409
Utilization 45 763 11
Other (282)
Closing balance (21 088) (50 761)
  The key write-downs on inventories cover energy certificates. Recognition and utlisation of write-downs of energy certificates have been discussed in Note 6 to the consolidated financial statements.
527 596 509 224
Corporate income tax receivable 17.4

17.4. Income tax receivables and payables

As at 31 December 2014 the Group had the following income tax assets and liabilities:
  • income tax receivables of PLN 26 489 thousand, where PLN 8 390 thousand is income tax receivables of the Tax Capital Group;
  • income tax liabilities of PLN 13 518 thousand, where the entire amount does not relate to the Tax Capital Group companies.
Moreover, the Tax Capital Group has a receivable of PLN 22 250 thousand related to filing the application to acknowledge tax excess payment and tax return correction for the year 2013, fully covered with an impairment allowance resulting from pending court proceedings. The receivable in question results from adjustment of component repairs recognized by Group companies, as discussed in detail in Note 45 to the consolidated financial statements.
26 489 31 890
Trade and other receivables 26

26. Trade and other receivables

Current trade and other receivables as at 31 December 2014 and 31 December 2013 have been presented in the table below.  
As at
31 December 2014
As at
31 December 2013
Trade receivables 1 664 191 1 862 717
Receivables from sales of fixed and intangible assets 483 8 355
Receivables claimed at court 20 328 20 342
Loans granted 6 368
Other receivables 277 799 243 227
Total 1 969 169 2 134 641
    As at 31 December 2014 long-term trade and other receivables disclosed as other financial assets under non-current assets in the statement of financial position amounted to PLN 30 530 thousand and included long-term trade receivables of PLN 38 thousand and other long-term receivables of PLN 30 492 thousand. As at 31 December 2013 long-term trade and other receivables amounted to PLN 20 747 thousand and included long-term trade receivables of PLN 434 thousand and other long-term receivables of PLN 20 313 thousand (as described in Note 22 to the consolidated financial statements).
1 969 169 2 134 641
Other financial assets 22

22. Other financial assets

As at

31 December 2014

As at

31 December 2013

Shares in unlisted and listed companies 112 396 125 303
Advance payment for acquisition of shares 232 500
Bonds, T-bills and other debt securities 23 622 1 890
Loans granted 35 823 30 831
Other long-term receivables 198 331 189 310
Other long-term receivables 30 530 20 747
Other 4 220 2 463
Total 404 922 603 044
Non-current 377 383 587 166
Current 27 539 15 878
  A decrease in other financial assets results mainly from the settlement of the amount paid to Kompania Węglowa S.A. for the shares acquired in TAURON Wydobycie S.A. in December 2013 (i.e. PLN 232 500 thousand) due to the acquisition of non-controlling interest, in relation to meeting the conditions precedent for the transfer of the title to acquired shares in TAURON Wydobycie S.A.
27 539 15 878
Other non-financial assets 27

27. Other current non-financial assets

As at
31 December 2014
As at
31 December 2013
Costs settled over time, including: 87 478 108 103
Property and tort insurance 16 795 15 962
IT, telecom and postal services 18 624 18 605
Costs of preparing production in hard coal mines 38 079 38 847
Other costs settled over time 13 980 34 689
Other current non-financial assets including: 266 511 162 326
Prepayment for intangible assets 40 475
Prepayments for deliveries 116 299 1 238
Receivables from input VAT 106 629 55 883
Receivables from excise duty 22 138 55 534
Other tax receivables 4 188 104
Surplus of Social Fund assets over Social Fund liabilities 5 212 2 822
Other current assets 12 045 6 270
Total 353 989 270 429
  Prepayments for deliveries increased because TAURON Wytwarzanie S.A. purchased coal for PLN 115 344 thousand deposited at the premises of the supplier - Kompania Węglowa S.A.
353 989 270 429
Cash and cash equivalents 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.
1 420 909 636 909
Non-current assets and assets of a disposal group classified
as held for sale
29

29. Non-current assets and a disposal group classified as held for sale

A disposal group includes the assets and liabilities of four existing wind farms classified as held for sale in relation to the Group’s implementation of the off-balance sheet asset financing policy aimed at selling (with the buy-back option) of a majority interest in the existing wind farms to a financial investor and refinancing the existing debt allocated to the wind farms using bank debt when the Company becomes a minority shareholder. Funds obtained in the aforesaid procedure may be used for purposes of other investment projects. The majority interest in the wind farm assets is planned to be sold at the end of the first half of 2015.For purposes of the said transaction, the wind farm assets will be transferred from TAURON Ekoenergia Sp. z o.o. to an existing entity, Marselwind Sp. z o.o., 100% of shares in which are held by TAURON Polska Energia S.A. The spin-off of TAURON Ekoenergia Sp. z o.o. will be carried out under Article 529.1.4 of the Code of Commercial Companies through separating and transferring assets forming an organized part of the enterprise (four wind farms) onto Marselwind Sp. z o.o. in return for shares in the acquirer, all of which will be taken up by TAURON Polska Energia S.A. Main categories of assets and liabilities of the disposal group classified as held for sale as at 31 December 2014:  
As at
31 December 2014
Property, plant and equipment 1 208 545
Goodwill and other intangible assets 52 077
Other non-current non-financial assets 36 678
Trade and other short-term 1 937
Other current non-financial assets 21 695
Total assets of a disposal group  1 320 932
Other long-term provisions 58 336
Deferred income tax liability 7 325
Trade and other short-term payables
10 484
Other short-term provisions 1 038
Deferred income and government grants (short-term) 7 787
Total liabilities directly related to the disposal group 84 970
Net assets of a disposal group classified as held for sale 1 235 962
  Non-current assets and the disposal group, classified as held for sale, as presented in the statement of financial position as at 31 December 2014 and 31 December 2013:  
As at

31 December 2014

As at

31 December 2013

Disposal group 1 320 932
Other non-current assets 16 773 33 041
Non-current assets and assets of a disposal

group classified as held for sale

1 337 705 33 041
Liabilities of a disposal group classified

as held for sale

84 970
  A change in the balance of other non-current assets classified as held for sale in the year ended 31 December 2014 is mainly related to completion of the sale of assets of the closed Elektrownia Halemba, which had been classified as non-current assets held for sale as at 31 December 2013. The total proceeds from sale amounted to PLN 12 800 thousand. The carrying amount of the assets sold was PLN 17 866 thousand. Consequently, the Group recognized a loss on sale of assets of PLN 5 066 thousand. At the same time, the provision for Elektrownia Halemba ash pile restoration of PLN 12 791 thousand was reversed following the sale.
1 337 705 33 041
6 396 444 4 788 562
  
TOTAL ASSETS 34 559 193 32 355 570

 

 

 

Note As at
31 December 2014
As at
31 December 2013
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Issued capital 31.1

31.1. Issued capital

Issued capital as at 31 December 2014  
Class/
issue
Type of shares Number of shares Nominal value of one share
(in PLN)
Value of class/issue at nominal value Method of payment
AA bearer shares 1 589 438 762 5 7 947 194 cash/in-kind contribution
BB registered shares 163 110 632 5 815 553 in-kind contribution
Total 1 752 549 394   8 762 747
  As at 31 December 2014, the value of issued capital, the number of shares and the par value of shares did not change compared to 31 December 2013.     Shareholding structure as at 31 December 2014 (to the best of the Company’s knowledge)  
Shareholder Number of shares Value of shares Percentage of share capital Percentage of total vote
State Treasury 526 848 384 2 634 242 30.06% 30.,06%
KGHM Polska Miedź S.A. 182 110 566 910 553 10.39% 10.39%
ING Otwarty Fundusz Emerytalny 88 742 929 443 715 5.06% 5.06%
Other shareholders 954 847 515 4 774 237 54.49% 54.49%
Total 1 752 549 394 8 762 747 100.00% 100.00%
   
8 762 747 8 762 747
Reserve capital 31.3

31.3. Reserve capital

In the year ended 31 December 2014, the reserve capital was increased by PLN 1 355 987 thousand. Pursuant to a resolution of the Ordinary General Shareholders’ Meeting of 15 May 2014 on distribution of profit for 2013, the amount in question was allocated to reserve capital.
10 393 686 9 037 699
Revaluation reserve from valuation of hedging 31.5

31.5. Revaluation reserve from valuation of hedging instruments

Year ended 31 December 2014 Year ended 31 December 2013
Opening balance (126 651) (153 703)
Remeasurement of hedging instruments (21 171) 30 904
Remeasurement of hedging instruments charged to profit or loss 964 2 493
Deferred income tax 3 839 (6 345)
Closing balance (143 019) (126 651)
  The revaluation reserve from valuation of hedging instruments results from valuation of Interest Rate Swaps (IRS) hedging the interest rate risk arising from bonds issued. As at 31 December 2014 the Group concluded hedging transactions subject to specific risk management policy. Pursuant to a decision of the Financial Risk Management Committee of 30 January 2012, in March 2012 the Parent hedged the interest rate risk arising from bonds issued under the Bond Issue Scheme, by entering into an interest rate swap (IRS) transaction for a term of 5 years. The aforementioned transaction was concluded due to fluctuations in the projected future cash flows from interest payments resulting from the issue of bonds in PLN with a floating interest rate based on WIBOR 6M. The Company hedged 80% of such cash flows. Following early redemption of Tranche A bonds carried out on 29 December 2014 and discussed in detail in Note 35.2 to these consolidated financial statements, the Company no longer applied hedge accounting to a portion of IRS contracts hedging the bonds redeemed. The Company applies hedge accounting to the remaining transactions. As at 31 December 2014 the Company recognized PLN (143 019) thousand of revaluation reserve from valuation of hedging instruments. It represents a liability arising from measurement of interest rate swaps as at the end of the reporting period, totaling PLN 180 933 thousand, adjusted by a portion of measurement relating to interest accrued on bonds as at the end of the reporting period, including deferred tax. The profit/loss for the period was charged with PLN 75 699 thousand, where PLN 74 735 thousand was the amount paid in respect of hedges used in relation to closed interest periods and PLN 964 thousand resulted from remeasurement of instruments related to interest on bonds accrued as at the end of the reporting period. The aforementioned costs of hedging IRS transactions increased financial expenses arising from interest on bonds issued in the statement of comprehensive income.
(143 019) (126 651)
Foreign exchange differences from translation of foreign entities   (1 386) (1 631)
Retained earnings/(Accumulated losses) 31.4

31.4. Retained earnings and accumulated losses and restrictions on dividend payment

PLN 1 149 138 thousand composed mainly of the profit of the Company for 2014, which has reached PLN 1 146 443 thousand and has not been distributed by the date of approving these financial statements, is subject to distribution. The item has been presented in detail in Note 32.5 of the separate financial statements of the Company for 2014. Previous year profit/loss arising from settlement of business combinations with subsidiaries and actuarial gains and losses related to provisions for post-employment benefits recognized through other comprehensive income are not distributable. As at 31 December 2014 and as at the date of approving these financial statements for publication no other dividend restriction occurred.
(1 045 580) (344 999)
  17 966 448 17 327 165
    
Non-controlling interests 31.6

31.6. Non-controlling interest

Year ended

31 December 2014

Year ended

31 December 2013

At the beginning of period 466 334 493 339
Dividends paid by subsidiaries (1 163) (8 328)
Share in actuarial gains/(losses) related to provisions for

post-employment benefits

(370) 2 683
Acquisition of non-controlling interests by the Group (407 596) (55 772)
Mandatory squeeze-out (32 567) (2 083)
Share in subsidiaries’ net profit or loss 4 667 38 167
Change in non-controlling interests due to mergers 811 (1 672)
At the end of period 30 116 466 334
30 116 466 334
    
Total equity   17 996 564 17 793 499
   
Non-current liabilities
Interest-bearing loans and borrowings 35

35. Interest-bearing loans and borrowings

As at

31 December 2014

As at

31 December 2013

Loans 1 232 032 1 484 643
Bonds issued 6 821 830 4 300 522
Total 8 053 862 5 785 165
Current 631 530 284 633
Non-current 7 422 332 5 500 532
7 422 332 5 500 532
Liability under finance lease 36.2

36.2. Finance lease liabilities

Future minimum lease payments under finance lease and similar agreements and the present value of minimum lease payments as at 31 December 2014 and 31 December 2013:  
As at 31 December 2014 As at 31 December 2013
Minimum lease payments Present value of lease payments Minimum lease payments Present value of lease payments
Within 1 year 15 146 13 461 20 221 17 327
Within 1 to 5 years 48 731 46 420 65 864 61 620
More than 5 years 26 23 23 23
Minimum lease payments, total 63 903 59 904 86 108 78 970
Less amounts representing finance charges (3 999) (7 138)
Present value of minimum lease payments, of which: 59 904 59 904 78 970 78 970
current 13 461 13 461 17 327 17 327
non-current 46 443 46 443 61 643 61 643
  Key finance lease items as at 31 December 2014:
  • Liability of TAURON Ciepło Sp. z o.o. arising from the lease of plant and machinery, and real estate. As at 31 December 2014 the carrying amount of these finance lease liabilities was PLN 24 928 thousand (PLN 38 877 thousand as at 31 December 2013);
  • Liability due to lease of buildings in Katowice in the amount of PLN 33 159 thousand (as at 31 December 2013 it was PLN 35 946 thousand).
46 443 61 643
Trade and other payablese   48 986 7 827
Derivative instruments 37

37. Derivatives

Balance as at 31 December 2014 Balance as at 31 December 2013
 Charged to profit or loss Charged to other comprehensive income Total Charged to profit or loss Charged to other comprehensive income Total
Assets Liabilities Assets Liabilities
CCIRS 258 1 499 (1 241)
IRS (17 746) (176 567) (194 313) (3 403) (156 359) (159 762)
Commodity forwards/futures (250) 312 (562) (6) 34 (40)
Currency forwards (1 129) (1 129)
Total derivative instruments, including:     1 811 (196 116)     34 (160 931)
Short-term 1 811 (102 615) 34 (73 358)
Long-term (93 501) (87 573)
  On 24 November 2014 the Company entered into a Coupon Cross Currency Swap (CCIRS) up to EUR 168 000 thousand. The contract was concluded for the period of 15 years. In accordance with the assumptions, the Company pays interest accrued based on a floating interest rate in PLN and receives fixed interest-rate payments in EUR. Hedge accounting principles do not apply to the transaction in question. Derivatives such as commodity futures and forwards include contracts for purchase and sale of commodities, mainly emission allowances. Derivatives (IRS) include interest rate swap contracts concluded in order to hedge interest cash flows related to bonds issued, as presented in detail in Note 31.5 to these consolidated financial statements.
93 501 87 573
Provisions for employee benefits 38

38. Provisions for employee benefits

Year ended
31 December 2014
Year ended
31 December 2013
Provision for post-employment benefits and jubilee
bonuses
2 044 405 1 605 629
Provision for employment termination benefits 62 872 54 553
Total 2 107 277 1 660 182
Current 158 954 162 368
Non-current 1 948 323 1 497 814
1 948 323 1 497 814
Other provisions 39

39. Other provisions

165 278 141 408
Accruals, deferred income and government grants 40

40. Deferred income and government grants

662 072 668 487
Deferred tax liability 17.3

17.3. Deferred income tax

Deferred income tax results from:  
As at
31 December 2014
As at
31 December 2013
Deferred tax liability
– difference between tax base and carrying amount of fixed and intangible
assets
2 037 038 2 030 622
– difference between tax base and carrying amount of financial assets 21 505 21 551
– different timing of recognition of sales revenue for tax purposes 59 105 36 847
– recognition of estimated revenue from sale of power distribution services 8 326 40 294
– difference between tax base and carrying amount of property rights arising from energy certificates 47 490 29 688
– other 14 487 16 469
Deferred tax liability 2 187 951 2 175 471
Deferred tax assets
– difference between tax base and carrying amount of fixed and intangible
assets
5 620 7 317
– difference between tax base and carrying amount of inventories 5 130 2 748
– power infrastructure received free of charge and received connection fees 62 177 67 401
– provisions 667 464 672 754
– difference between tax base and carrying amount of financial assets 27 323 29 594
– difference between tax base and carrying amount of financial liabilities 20 680 6 239
– valuation of hedging instruments 34 377 30 354
– different timing of recognition of cost of sales for tax purposes 38 632 35 149
– other accrued expenses 3 467 17 647
– tax losses 12 758
– other 15 274 13 250
Deferred tax assets 892 902 882 453
After setting off balances at the level of individual Group companies, deferred tax for the Group is presented as:
Deferred tax asset 62 108 46 039
Deferred tax liability (1 357 157) (1 339 057)
As at 31 December 2014 and as at 31 December 2013 deferred tax asset and deferred tax liability of companies from the Tax Capital Group, described in detail in Note 9.25 hereto, were netted off due to the fact that as of 1 January 2012 these companies have filed combined tax returns. Change in deferred tax liability  
Year ended
31 December 2014
Year ended
31 December 2013
Opening balance 2 175 471 2 160 699
Change in the balance:
corresponding to profit/loss 42 968 14 579
contribution (12 397)
reclassification to disposal group classified as held for sale (18 910)
other changes 819 193
Closing balance 2 187 951 2 175 471
  Change in deferred tax asset  
Year ended
31 December 2014
Year ended
31 December 2013
Opening balance 882 453 817 147
Change in the balance:
corresponding to profit/loss (31 347) 75 084
corresponding to other comprehensive income 68 172 (10 495)
contribution (16 627)
reclassification to disposal group classified as held for sale (11 585)
other changes 1 836 717
Closing balance 892 902 882 453
1 357 157 1 339 057
  11 744 092 9 304 341
   
Current liabilities
Current portion of interest-bearing loans and 35

35. Interest-bearing loans and borrowings

As at

31 December 2014

As at

31 December 2013

Loans 1 232 032 1 484 643
Bonds issued 6 821 830 4 300 522
Total 8 053 862 5 785 165
Current 631 530 284 633
Non-current 7 422 332 5 500 532
631 530 284 633
Current portion of liabilities under finance lease 36.2

36.2. Finance lease liabilities

Future minimum lease payments under finance lease and similar agreements and the present value of minimum lease payments as at 31 December 2014 and 31 December 2013:  
As at 31 December 2014 As at 31 December 2013
Minimum lease payments Present value of lease payments Minimum lease payments Present value of lease payments
Within 1 year 15 146 13 461 20 221 17 327
Within 1 to 5 years 48 731 46 420 65 864 61 620
More than 5 years 26 23 23 23
Minimum lease payments, total 63 903 59 904 86 108 78 970
Less amounts representing finance charges (3 999) (7 138)
Present value of minimum lease payments, of which: 59 904 59 904 78 970 78 970
current 13 461 13 461 17 327 17 327
non-current 46 443 46 443 61 643 61 643
  Key finance lease items as at 31 December 2014:
  • Liability of TAURON Ciepło Sp. z o.o. arising from the lease of plant and machinery, and real estate. As at 31 December 2014 the carrying amount of these finance lease liabilities was PLN 24 928 thousand (PLN 38 877 thousand as at 31 December 2013);
  • Liability due to lease of buildings in Katowice in the amount of PLN 33 159 thousand (as at 31 December 2013 it was PLN 35 946 thousand).
13 461 17 327
Trade and other payables   1 866 865 2 023 537
Derivative instruments 37

37. Derivatives

Balance as at 31 December 2014 Balance as at 31 December 2013
 Charged to profit or loss Charged to other comprehensive income Total Charged to profit or loss Charged to other comprehensive income Total
Assets Liabilities Assets Liabilities
CCIRS 258 1 499 (1 241)
IRS (17 746) (176 567) (194 313) (3 403) (156 359) (159 762)
Commodity forwards/futures (250) 312 (562) (6) 34 (40)
Currency forwards (1 129) (1 129)
Total derivative instruments, including:     1 811 (196 116)     34 (160 931)
Short-term 1 811 (102 615) 34 (73 358)
Long-term (93 501) (87 573)
  On 24 November 2014 the Company entered into a Coupon Cross Currency Swap (CCIRS) up to EUR 168 000 thousand. The contract was concluded for the period of 15 years. In accordance with the assumptions, the Company pays interest accrued based on a floating interest rate in PLN and receives fixed interest-rate payments in EUR. Hedge accounting principles do not apply to the transaction in question. Derivatives such as commodity futures and forwards include contracts for purchase and sale of commodities, mainly emission allowances. Derivatives (IRS) include interest rate swap contracts concluded in order to hedge interest cash flows related to bonds issued, as presented in detail in Note 31.5 to these consolidated financial statements.
102 615 73 358
Provisions for employee benefits 38

38. Provisions for employee benefits

Year ended
31 December 2014
Year ended
31 December 2013
Provision for post-employment benefits and jubilee
bonuses
2 044 405 1 605 629
Provision for employment termination benefits 62 872 54 553
Total 2 107 277 1 660 182
Current 158 954 162 368
Non-current 1 948 323 1 497 814
158 954 162 368
Other provisions 39

39. Other provisions

1 081 415 1 563 019
Accruals, deferred income and government grants 40

40. Deferred income and government grants

245 520 239 639
Corporate income tax payable 17.4

17.4. Income tax receivables and payables

As at 31 December 2014 the Group had the following income tax assets and liabilities:
  • income tax receivables of PLN 26 489 thousand, where PLN 8 390 thousand is income tax receivables of the Tax Capital Group;
  • income tax liabilities of PLN 13 518 thousand, where the entire amount does not relate to the Tax Capital Group companies.
Moreover, the Tax Capital Group has a receivable of PLN 22 250 thousand related to filing the application to acknowledge tax excess payment and tax return correction for the year 2013, fully covered with an impairment allowance resulting from pending court proceedings. The receivable in question results from adjustment of component repairs recognized by Group companies, as discussed in detail in Note 45 to the consolidated financial statements.
13 518 79 035
Other non-financial liabilities 41

41. Other current non-financial liabilities

As at
31 December 2014
As at
31 December 2013
Taxes, customs, social security and other payables,
of which:
342 118 569 654
Excise 45 640 70 783
VAT 37 772 211 588
Social security 164 780 163 942
Personal Income Tax 47 696 48 381
Environmental charges 43 629 61 607
Real Estate Tax 8 459
Other 2 601 4 894
Other non-financial liabilities, of which: 277 571 245 160
Payments from customers relating to future periods, of which: 266 053 244 650
     prepayments for connection fees 26 100 34 085
     amounts overpaid by customers 224 510 192 457
     other 15 443 18 108
Other 11 518 510
Total 619 689 814 814
619 689 814 814
Liabilities of a disposal group classified
as held for sale
29

29. Non-current assets and a disposal group classified as held for sale

A disposal group includes the assets and liabilities of four existing wind farms classified as held for sale in relation to the Group’s implementation of the off-balance sheet asset financing policy aimed at selling (with the buy-back option) of a majority interest in the existing wind farms to a financial investor and refinancing the existing debt allocated to the wind farms using bank debt when the Company becomes a minority shareholder. Funds obtained in the aforesaid procedure may be used for purposes of other investment projects. The majority interest in the wind farm assets is planned to be sold at the end of the first half of 2015.For purposes of the said transaction, the wind farm assets will be transferred from TAURON Ekoenergia Sp. z o.o. to an existing entity, Marselwind Sp. z o.o., 100% of shares in which are held by TAURON Polska Energia S.A. The spin-off of TAURON Ekoenergia Sp. z o.o. will be carried out under Article 529.1.4 of the Code of Commercial Companies through separating and transferring assets forming an organized part of the enterprise (four wind farms) onto Marselwind Sp. z o.o. in return for shares in the acquirer, all of which will be taken up by TAURON Polska Energia S.A. Main categories of assets and liabilities of the disposal group classified as held for sale as at 31 December 2014:  
As at
31 December 2014
Property, plant and equipment 1 208 545
Goodwill and other intangible assets 52 077
Other non-current non-financial assets 36 678
Trade and other short-term 1 937
Other current non-financial assets 21 695
Total assets of a disposal group  1 320 932
Other long-term provisions 58 336
Deferred income tax liability 7 325
Trade and other short-term payables
10 484
Other short-term provisions 1 038
Deferred income and government grants (short-term) 7 787
Total liabilities directly related to the disposal group 84 970
Net assets of a disposal group classified as held for sale 1 235 962
  Non-current assets and the disposal group, classified as held for sale, as presented in the statement of financial position as at 31 December 2014 and 31 December 2013:  
As at

31 December 2014

As at

31 December 2013

Disposal group 1 320 932
Other non-current assets 16 773 33 041
Non-current assets and assets of a disposal

group classified as held for sale

1 337 705 33 041
Liabilities of a disposal group classified

as held for sale

84 970
  A change in the balance of other non-current assets classified as held for sale in the year ended 31 December 2014 is mainly related to completion of the sale of assets of the closed Elektrownia Halemba, which had been classified as non-current assets held for sale as at 31 December 2013. The total proceeds from sale amounted to PLN 12 800 thousand. The carrying amount of the assets sold was PLN 17 866 thousand. Consequently, the Group recognized a loss on sale of assets of PLN 5 066 thousand. At the same time, the provision for Elektrownia Halemba ash pile restoration of PLN 12 791 thousand was reversed following the sale.
84 970
4 818 537 5 257 730
  
Total liabilities   16 562 629 14 562 071
  
TOTAL EQUITY AND LIABILITIES   34 559 193 32 355 570

 

 

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