Search results
Sorry, nothing was found
No notes
Your basket is empty
Send to printer
delete
Export table to Excel Zoom
Note Year ended
31 December 2016
Year ended
31 December 2015
Cash flows from operating activities
Profit (loss) before taxation   508 861 (2 187 771)
Share in (profit)/loss of joint ventures   (60 040) (7 933)
Depreciation and amortization   1 668 726 1 832 780
Impairment losses on property, plant and equipment, intangible assets
and goodwill
44.1
44.1. Cash flows from operating activities
Impairment losses on property, plant and equipment, intangible assets and goodwill

Impairment losses of PLN 867 109 thousand, which adjust the Group’s profit/loss before tax, have been discussed in more detail in Note 11 to these consolidated financial statements.

Changes in working capital

Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Change in receivables (46 280) 118 806
Change in receivables from clients in statement of financial position (64 032) 87 065
Adjustment related to acquisition of orgnanized part of the enterprise (ZCP Brzeszcze) and inclusion of new companies in consolidation 12 496 13 200
Other adjustments 5 256 18 541
Change in inventories (55 731) 90 497
Change in inventories in statement of financial position (52 841) 94 317
Adjustment related to transfer of invetories to/from property, plant and equipment (4 347) (4 502)
Other adjustments 1 457 682
Change in payables excluding loans and borrowings 156 247 (180 636)
Change in liabilities to suppliers in statement of financial position 39 023 (126 038)
Change in payroll, social security and other financial liabilities (1 536) (74 211)
Change in non-financial liabilities in statement of financial position 27 257 (3 649)
Change in liabilities due to taxes excluding income tax 64 280 2 174
Adjustment related to acquisition of orgnanized part of the enterprise (ZCP Brzeszcze) and inclusion of new companies in consolidation (24 610) (9 395)
Adjustment of VAT change related to capital commitments 50 570 33 574
Other adjustments 1 263 (3 091)
Change in other non-current and current assets 341 335 (104 176)
Change in other current and non-current non-financial assets 176 026 95 543
Change in receivables due to taxes excluding income tax 47 050 (94 481)
Change in non-current and current emission allowances (8 727) (157 717)
Change in non-current and current energy certificates 218 347 47 037
Change in advance payments for property, plant and equipment and intangible assets (84 372) (49 172)
Reclassification to/from assets held for sale 39 758
Other adjustments (6 989) 14 856
Change in deferred income, government grants and accruals (140 063) (73 962)
Change in deferred income, government grants and accruals (82 746) (2 891)
Adjustmet related to property, plant and equipment and intangible assets received free of charge (18 919) (21 348)
Adjustment related to subsidies received (29 220) (41 941)
Other adjustments (9 178) (7 782)
Change in provisions (28 173) 141 843
Change of short term and long term provisions in statement of financial position (169 061) 127 291
Adjustment related to actuarial gains/losses from provisions for post-employment benefits charged to other comprehensive income 204 597 64 523
Adjustment related to acquisition of orgnanized part of the enterprise (ZCP Brzeszcze) (92 454)
Adjustment related to change of provisions for disassembly of fixed assets and land restoration booked in correspondence with property, plant and equipment 33 415 10 699
Reclassification to/from assets held for sale (59 375)
Other adjustments (4 670) (1 295)
Total 227 335 (7 628)

Income tax paid

Income tax paid in the amount of PLN 394 792 thousand results mainly from the Tax Capital Group’s payment of advance income tax for 2016 totaling PLN 300 054 thousand in the year ended 31 December 2016 and advance income tax for the fourth quarter of 2015 totaling PLN 88 784 thousand.

867 109 3 595 895
Interest and commissions   249 719 273 502
Other adjustments of profit before tax   (2 703) 329
Change in working capital 44.1
44.1. Cash flows from operating activities
Impairment losses on property, plant and equipment, intangible assets and goodwill

Impairment losses of PLN 867 109 thousand, which adjust the Group’s profit/loss before tax, have been discussed in more detail in Note 11 to these consolidated financial statements.

Changes in working capital

Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Change in receivables (46 280) 118 806
Change in receivables from clients in statement of financial position (64 032) 87 065
Adjustment related to acquisition of orgnanized part of the enterprise (ZCP Brzeszcze) and inclusion of new companies in consolidation 12 496 13 200
Other adjustments 5 256 18 541
Change in inventories (55 731) 90 497
Change in inventories in statement of financial position (52 841) 94 317
Adjustment related to transfer of invetories to/from property, plant and equipment (4 347) (4 502)
Other adjustments 1 457 682
Change in payables excluding loans and borrowings 156 247 (180 636)
Change in liabilities to suppliers in statement of financial position 39 023 (126 038)
Change in payroll, social security and other financial liabilities (1 536) (74 211)
Change in non-financial liabilities in statement of financial position 27 257 (3 649)
Change in liabilities due to taxes excluding income tax 64 280 2 174
Adjustment related to acquisition of orgnanized part of the enterprise (ZCP Brzeszcze) and inclusion of new companies in consolidation (24 610) (9 395)
Adjustment of VAT change related to capital commitments 50 570 33 574
Other adjustments 1 263 (3 091)
Change in other non-current and current assets 341 335 (104 176)
Change in other current and non-current non-financial assets 176 026 95 543
Change in receivables due to taxes excluding income tax 47 050 (94 481)
Change in non-current and current emission allowances (8 727) (157 717)
Change in non-current and current energy certificates 218 347 47 037
Change in advance payments for property, plant and equipment and intangible assets (84 372) (49 172)
Reclassification to/from assets held for sale 39 758
Other adjustments (6 989) 14 856
Change in deferred income, government grants and accruals (140 063) (73 962)
Change in deferred income, government grants and accruals (82 746) (2 891)
Adjustmet related to property, plant and equipment and intangible assets received free of charge (18 919) (21 348)
Adjustment related to subsidies received (29 220) (41 941)
Other adjustments (9 178) (7 782)
Change in provisions (28 173) 141 843
Change of short term and long term provisions in statement of financial position (169 061) 127 291
Adjustment related to actuarial gains/losses from provisions for post-employment benefits charged to other comprehensive income 204 597 64 523
Adjustment related to acquisition of orgnanized part of the enterprise (ZCP Brzeszcze) (92 454)
Adjustment related to change of provisions for disassembly of fixed assets and land restoration booked in correspondence with property, plant and equipment 33 415 10 699
Reclassification to/from assets held for sale (59 375)
Other adjustments (4 670) (1 295)
Total 227 335 (7 628)

Income tax paid

Income tax paid in the amount of PLN 394 792 thousand results mainly from the Tax Capital Group’s payment of advance income tax for 2016 totaling PLN 300 054 thousand in the year ended 31 December 2016 and advance income tax for the fourth quarter of 2015 totaling PLN 88 784 thousand.

227 335 (7 628)
Income tax paid 44.1
44.1. Cash flows from operating activities
Impairment losses on property, plant and equipment, intangible assets and goodwill

Impairment losses of PLN 867 109 thousand, which adjust the Group’s profit/loss before tax, have been discussed in more detail in Note 11 to these consolidated financial statements.

Changes in working capital

Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Change in receivables (46 280) 118 806
Change in receivables from clients in statement of financial position (64 032) 87 065
Adjustment related to acquisition of orgnanized part of the enterprise (ZCP Brzeszcze) and inclusion of new companies in consolidation 12 496 13 200
Other adjustments 5 256 18 541
Change in inventories (55 731) 90 497
Change in inventories in statement of financial position (52 841) 94 317
Adjustment related to transfer of invetories to/from property, plant and equipment (4 347) (4 502)
Other adjustments 1 457 682
Change in payables excluding loans and borrowings 156 247 (180 636)
Change in liabilities to suppliers in statement of financial position 39 023 (126 038)
Change in payroll, social security and other financial liabilities (1 536) (74 211)
Change in non-financial liabilities in statement of financial position 27 257 (3 649)
Change in liabilities due to taxes excluding income tax 64 280 2 174
Adjustment related to acquisition of orgnanized part of the enterprise (ZCP Brzeszcze) and inclusion of new companies in consolidation (24 610) (9 395)
Adjustment of VAT change related to capital commitments 50 570 33 574
Other adjustments 1 263 (3 091)
Change in other non-current and current assets 341 335 (104 176)
Change in other current and non-current non-financial assets 176 026 95 543
Change in receivables due to taxes excluding income tax 47 050 (94 481)
Change in non-current and current emission allowances (8 727) (157 717)
Change in non-current and current energy certificates 218 347 47 037
Change in advance payments for property, plant and equipment and intangible assets (84 372) (49 172)
Reclassification to/from assets held for sale 39 758
Other adjustments (6 989) 14 856
Change in deferred income, government grants and accruals (140 063) (73 962)
Change in deferred income, government grants and accruals (82 746) (2 891)
Adjustmet related to property, plant and equipment and intangible assets received free of charge (18 919) (21 348)
Adjustment related to subsidies received (29 220) (41 941)
Other adjustments (9 178) (7 782)
Change in provisions (28 173) 141 843
Change of short term and long term provisions in statement of financial position (169 061) 127 291
Adjustment related to actuarial gains/losses from provisions for post-employment benefits charged to other comprehensive income 204 597 64 523
Adjustment related to acquisition of orgnanized part of the enterprise (ZCP Brzeszcze) (92 454)
Adjustment related to change of provisions for disassembly of fixed assets and land restoration booked in correspondence with property, plant and equipment 33 415 10 699
Reclassification to/from assets held for sale (59 375)
Other adjustments (4 670) (1 295)
Total 227 335 (7 628)

Income tax paid

Income tax paid in the amount of PLN 394 792 thousand results mainly from the Tax Capital Group’s payment of advance income tax for 2016 totaling PLN 300 054 thousand in the year ended 31 December 2016 and advance income tax for the fourth quarter of 2015 totaling PLN 88 784 thousand.

(394 792) (111 716)
Net cash from operating activities   3 064 215 3 387 458
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets 44.2
44.2. Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets
Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Purchase of property, plant and equipment (3 590 348) (3 877 348)
Purchase of intangible assets (127 446) (117 145)
Change in the balance of VAT-adjusted capital commitments 214 984 138 635
Change in the balance of advance payments 84 372 49 172
Costs of overhaul and internal manufacturing (99 017) (180 912)
Other 1 159 14 088
Total (3 516 296) (3 973 510)
Public aid refund

Payments to refund public aid of PLN 131 077 thousand are related to the refund made by Nowe Brzeszcze Grupa TAURON Sp. z o.o. under the public aid refund agreement, which has been discussed in more detail in Note 32 to these consolidated financial statements.

Acquisition of financial assets

Payments to acquire financial assets in the year ended 31 December 2016 in the amount of PLN 36 621 thousand include mainly the Parent’s purchase of units of PLN 25 000 thousand.

Loans granted

Payments to grant loans result from the loans disbursed by the Parent to Elektrociepłownia Stalowa Wola S.A., a jointly-controlled entity, in the total amount of PLN 23 575 thousand under agreements entered into in November 2015 and in the year ended 31 December 2016, which has been discussed in more detail in Note 23 to these consolidated financial statements.

Dividends received

Proceeds from dividends received in the amount of PLN 29 728 thousand concern mainly the dividends received by the Company from a jointly-controlled entity, TAMEH HOLDING Sp. z o.o., in the amount of PLN 24 000 thousand.

(3 516 296) (3 973 510)
Public aid refund 44.2
44.2. Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets
Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Purchase of property, plant and equipment (3 590 348) (3 877 348)
Purchase of intangible assets (127 446) (117 145)
Change in the balance of VAT-adjusted capital commitments 214 984 138 635
Change in the balance of advance payments 84 372 49 172
Costs of overhaul and internal manufacturing (99 017) (180 912)
Other 1 159 14 088
Total (3 516 296) (3 973 510)
Public aid refund

Payments to refund public aid of PLN 131 077 thousand are related to the refund made by Nowe Brzeszcze Grupa TAURON Sp. z o.o. under the public aid refund agreement, which has been discussed in more detail in Note 32 to these consolidated financial statements.

Acquisition of financial assets

Payments to acquire financial assets in the year ended 31 December 2016 in the amount of PLN 36 621 thousand include mainly the Parent’s purchase of units of PLN 25 000 thousand.

Loans granted

Payments to grant loans result from the loans disbursed by the Parent to Elektrociepłownia Stalowa Wola S.A., a jointly-controlled entity, in the total amount of PLN 23 575 thousand under agreements entered into in November 2015 and in the year ended 31 December 2016, which has been discussed in more detail in Note 23 to these consolidated financial statements.

Dividends received

Proceeds from dividends received in the amount of PLN 29 728 thousand concern mainly the dividends received by the Company from a jointly-controlled entity, TAMEH HOLDING Sp. z o.o., in the amount of PLN 24 000 thousand.

(131 077)
Purchase of financial assets 44.2
44.2. Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets
Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Purchase of property, plant and equipment (3 590 348) (3 877 348)
Purchase of intangible assets (127 446) (117 145)
Change in the balance of VAT-adjusted capital commitments 214 984 138 635
Change in the balance of advance payments 84 372 49 172
Costs of overhaul and internal manufacturing (99 017) (180 912)
Other 1 159 14 088
Total (3 516 296) (3 973 510)
Public aid refund

Payments to refund public aid of PLN 131 077 thousand are related to the refund made by Nowe Brzeszcze Grupa TAURON Sp. z o.o. under the public aid refund agreement, which has been discussed in more detail in Note 32 to these consolidated financial statements.

Acquisition of financial assets

Payments to acquire financial assets in the year ended 31 December 2016 in the amount of PLN 36 621 thousand include mainly the Parent’s purchase of units of PLN 25 000 thousand.

Loans granted

Payments to grant loans result from the loans disbursed by the Parent to Elektrociepłownia Stalowa Wola S.A., a jointly-controlled entity, in the total amount of PLN 23 575 thousand under agreements entered into in November 2015 and in the year ended 31 December 2016, which has been discussed in more detail in Note 23 to these consolidated financial statements.

Dividends received

Proceeds from dividends received in the amount of PLN 29 728 thousand concern mainly the dividends received by the Company from a jointly-controlled entity, TAMEH HOLDING Sp. z o.o., in the amount of PLN 24 000 thousand.

(36 621) (29 067)
Loans granted 44.2
44.2. Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets
Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Purchase of property, plant and equipment (3 590 348) (3 877 348)
Purchase of intangible assets (127 446) (117 145)
Change in the balance of VAT-adjusted capital commitments 214 984 138 635
Change in the balance of advance payments 84 372 49 172
Costs of overhaul and internal manufacturing (99 017) (180 912)
Other 1 159 14 088
Total (3 516 296) (3 973 510)
Public aid refund

Payments to refund public aid of PLN 131 077 thousand are related to the refund made by Nowe Brzeszcze Grupa TAURON Sp. z o.o. under the public aid refund agreement, which has been discussed in more detail in Note 32 to these consolidated financial statements.

Acquisition of financial assets

Payments to acquire financial assets in the year ended 31 December 2016 in the amount of PLN 36 621 thousand include mainly the Parent’s purchase of units of PLN 25 000 thousand.

Loans granted

Payments to grant loans result from the loans disbursed by the Parent to Elektrociepłownia Stalowa Wola S.A., a jointly-controlled entity, in the total amount of PLN 23 575 thousand under agreements entered into in November 2015 and in the year ended 31 December 2016, which has been discussed in more detail in Note 23 to these consolidated financial statements.

Dividends received

Proceeds from dividends received in the amount of PLN 29 728 thousand concern mainly the dividends received by the Company from a jointly-controlled entity, TAMEH HOLDING Sp. z o.o., in the amount of PLN 24 000 thousand.

(23 575) (26 100)
Total payments   (3 707 569) (4 028 677)
Proceeds from sale of property, plant and equipment and intangible assets   33 260 36 554
Repayment of loans granted   14 500
Redemption of debt securities   21 732
Dividends received 44.2
44.2. Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets
Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Purchase of property, plant and equipment (3 590 348) (3 877 348)
Purchase of intangible assets (127 446) (117 145)
Change in the balance of VAT-adjusted capital commitments 214 984 138 635
Change in the balance of advance payments 84 372 49 172
Costs of overhaul and internal manufacturing (99 017) (180 912)
Other 1 159 14 088
Total (3 516 296) (3 973 510)
Public aid refund

Payments to refund public aid of PLN 131 077 thousand are related to the refund made by Nowe Brzeszcze Grupa TAURON Sp. z o.o. under the public aid refund agreement, which has been discussed in more detail in Note 32 to these consolidated financial statements.

Acquisition of financial assets

Payments to acquire financial assets in the year ended 31 December 2016 in the amount of PLN 36 621 thousand include mainly the Parent’s purchase of units of PLN 25 000 thousand.

Loans granted

Payments to grant loans result from the loans disbursed by the Parent to Elektrociepłownia Stalowa Wola S.A., a jointly-controlled entity, in the total amount of PLN 23 575 thousand under agreements entered into in November 2015 and in the year ended 31 December 2016, which has been discussed in more detail in Note 23 to these consolidated financial statements.

Dividends received

Proceeds from dividends received in the amount of PLN 29 728 thousand concern mainly the dividends received by the Company from a jointly-controlled entity, TAMEH HOLDING Sp. z o.o., in the amount of PLN 24 000 thousand.

29 728 4 684
Other proceeds   17 123 9 085
Total proceeds   80 111 86 555
Net cash used in investing activities   (3 627 458) (3 942 122)
Cash flows from financing activities
Redemption of debt securities 44.3
44.3. Cash flows from financing activities
Repurchase of debt securities

Payments to repurchase debt securities result from the Company’s repurchase of Tranche C bonds in the total amount of PLN 3 000 000 thousand in the year ended 31 December 2016 and the early repurchase (on 30 September 2016) of a Tranche of PLN 300 000 thousand issued in March 2016.

Loans and borrowings repaid

Payments to repay loans and borrowings of PLN 140 331 thousand disclosed in the consolidated statement of cash flows result mainly from the Parent’s repayment of installments of a loan obtained from the European Investment Bank in the amount of PLN 132 818 thousand in the year ended 31 December 2016.

Interest paid
Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Interest paid in relation to debt securities (296 949) (286 692)
Interest paid in relation to loans and borrowings (53 183) (57 536)
Interest paid in relation to the finance lease (955) (1 237)
Total, of which: (351 087) (345 465)
financing cash outflows (255 116) (276 305)
investing cash outflows (95 971) (69 160)

The Group’s consolidated statement of cash flows presents incurred borrowing costs which were capitalized in the current period in the value of assets as payments to acquire property, plant and equipment and intangible assets in cash flows from investing activities.

Issue of debt securities

Proceeds from the issue of debt securities in the year ended 31 December 2016 are related to:

  • the Company’s issue of bonds with the total par value of PLN 2 950 000 thousand under a bond issue scheme of November 2015, which has been discussed in more detail in Note 33.2 to these consolidated financial statements;
  • the Company’s issue of bond tranches under the agreement with Bank Gospodarstwa Krajowego in the total amount of PLN 490 000 thousand.
  • the Company’s issue of subordinated hybrid bonds of PLN 844 607 thousand.
(3 300 000) (450 000)
Repayment of loans and borrowings 44.3
44.3. Cash flows from financing activities
Repurchase of debt securities

Payments to repurchase debt securities result from the Company’s repurchase of Tranche C bonds in the total amount of PLN 3 000 000 thousand in the year ended 31 December 2016 and the early repurchase (on 30 September 2016) of a Tranche of PLN 300 000 thousand issued in March 2016.

Loans and borrowings repaid

Payments to repay loans and borrowings of PLN 140 331 thousand disclosed in the consolidated statement of cash flows result mainly from the Parent’s repayment of installments of a loan obtained from the European Investment Bank in the amount of PLN 132 818 thousand in the year ended 31 December 2016.

Interest paid
Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Interest paid in relation to debt securities (296 949) (286 692)
Interest paid in relation to loans and borrowings (53 183) (57 536)
Interest paid in relation to the finance lease (955) (1 237)
Total, of which: (351 087) (345 465)
financing cash outflows (255 116) (276 305)
investing cash outflows (95 971) (69 160)

The Group’s consolidated statement of cash flows presents incurred borrowing costs which were capitalized in the current period in the value of assets as payments to acquire property, plant and equipment and intangible assets in cash flows from investing activities.

Issue of debt securities

Proceeds from the issue of debt securities in the year ended 31 December 2016 are related to:

  • the Company’s issue of bonds with the total par value of PLN 2 950 000 thousand under a bond issue scheme of November 2015, which has been discussed in more detail in Note 33.2 to these consolidated financial statements;
  • the Company’s issue of bond tranches under the agreement with Bank Gospodarstwa Krajowego in the total amount of PLN 490 000 thousand.
  • the Company’s issue of subordinated hybrid bonds of PLN 844 607 thousand.
(140 331) (140 585)
Dividends paid to equity holders of the Parent   (262 882)
Interest paid 44.3
44.3. Cash flows from financing activities
Repurchase of debt securities

Payments to repurchase debt securities result from the Company’s repurchase of Tranche C bonds in the total amount of PLN 3 000 000 thousand in the year ended 31 December 2016 and the early repurchase (on 30 September 2016) of a Tranche of PLN 300 000 thousand issued in March 2016.

Loans and borrowings repaid

Payments to repay loans and borrowings of PLN 140 331 thousand disclosed in the consolidated statement of cash flows result mainly from the Parent’s repayment of installments of a loan obtained from the European Investment Bank in the amount of PLN 132 818 thousand in the year ended 31 December 2016.

Interest paid
Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Interest paid in relation to debt securities (296 949) (286 692)
Interest paid in relation to loans and borrowings (53 183) (57 536)
Interest paid in relation to the finance lease (955) (1 237)
Total, of which: (351 087) (345 465)
financing cash outflows (255 116) (276 305)
investing cash outflows (95 971) (69 160)

The Group’s consolidated statement of cash flows presents incurred borrowing costs which were capitalized in the current period in the value of assets as payments to acquire property, plant and equipment and intangible assets in cash flows from investing activities.

Issue of debt securities

Proceeds from the issue of debt securities in the year ended 31 December 2016 are related to:

  • the Company’s issue of bonds with the total par value of PLN 2 950 000 thousand under a bond issue scheme of November 2015, which has been discussed in more detail in Note 33.2 to these consolidated financial statements;
  • the Company’s issue of bond tranches under the agreement with Bank Gospodarstwa Krajowego in the total amount of PLN 490 000 thousand.
  • the Company’s issue of subordinated hybrid bonds of PLN 844 607 thousand.
(255 116) (276 305)
Other payments   (29 697) (44 059)
Total payments   (3 725 144) (1 173 831)
Issue of debt securities 44.3
44.3. Cash flows from financing activities
Repurchase of debt securities

Payments to repurchase debt securities result from the Company’s repurchase of Tranche C bonds in the total amount of PLN 3 000 000 thousand in the year ended 31 December 2016 and the early repurchase (on 30 September 2016) of a Tranche of PLN 300 000 thousand issued in March 2016.

Loans and borrowings repaid

Payments to repay loans and borrowings of PLN 140 331 thousand disclosed in the consolidated statement of cash flows result mainly from the Parent’s repayment of installments of a loan obtained from the European Investment Bank in the amount of PLN 132 818 thousand in the year ended 31 December 2016.

Interest paid
Export table to Excel Zoom
Year ended
31 December 2016
Year ended
31 December 2015
Interest paid in relation to debt securities (296 949) (286 692)
Interest paid in relation to loans and borrowings (53 183) (57 536)
Interest paid in relation to the finance lease (955) (1 237)
Total, of which: (351 087) (345 465)
financing cash outflows (255 116) (276 305)
investing cash outflows (95 971) (69 160)

The Group’s consolidated statement of cash flows presents incurred borrowing costs which were capitalized in the current period in the value of assets as payments to acquire property, plant and equipment and intangible assets in cash flows from investing activities.

Issue of debt securities

Proceeds from the issue of debt securities in the year ended 31 December 2016 are related to:

  • the Company’s issue of bonds with the total par value of PLN 2 950 000 thousand under a bond issue scheme of November 2015, which has been discussed in more detail in Note 33.2 to these consolidated financial statements;
  • the Company’s issue of bond tranches under the agreement with Bank Gospodarstwa Krajowego in the total amount of PLN 490 000 thousand.
  • the Company’s issue of subordinated hybrid bonds of PLN 844 607 thousand.
4 284 607 310 000
Proceeds from contracted loans/borrowings   914 295 000
Subsidies received   29 884 43 139
Total proceeds   4 315 405 648 139
Net cash from (used in) financing activities   590 261 (525 692)
Net increase / (decrease) in cash and cash equivalents   27 018 (1 080 356)
Net foreign exchange difference   1 283 1 169
Cash and cash equivalents at the beginning of the period 29
29. Cash and cash equivalents
Export table to Excel Zoom
As at
31 December 2016
As at
31 December 2015
Cash at bank and in hand 368 274 353 428
Short-term deposits (up to 3 months) 16 450 10 722
Other 157 762
Total cash and cash equivalents presented in the statement
of financial position, of which:
384 881 364 912
restricted cash 144 404 206 254
Bank overdraft (15 156) (10 206)
Cash pool (16 095) (29 377)
Foreign exchange 1 103 2 386
Total cash and cash equivalents presented
in the statement of cash flows
354 733 327 715

The difference between the balance of cash presented in the statement of financial position and the one in the statement of cash flows results from overdrafts, cash pool loans granted by entities not subject to consolidation due to the overall immateriality and exchange gains and losses on measurement of cash on foreign currency accounts.

As at 31 December 2016, the balance of restricted cash included mainly cash on the accounts for bid bonds of PLN 79 227 thousand and cash on the accounts used for the settlement of electricity and emission allowances traded on the Polish Power Exchange, i.e. Towarowa Giełda Energii S.A., of PLN 49 000 thousand.

327 715 1 408 071
Cash and cash equivalents at the end of the period, of which: 29
29. Cash and cash equivalents
Export table to Excel Zoom
As at
31 December 2016
As at
31 December 2015
Cash at bank and in hand 368 274 353 428
Short-term deposits (up to 3 months) 16 450 10 722
Other 157 762
Total cash and cash equivalents presented in the statement
of financial position, of which:
384 881 364 912
restricted cash 144 404 206 254
Bank overdraft (15 156) (10 206)
Cash pool (16 095) (29 377)
Foreign exchange 1 103 2 386
Total cash and cash equivalents presented
in the statement of cash flows
354 733 327 715

The difference between the balance of cash presented in the statement of financial position and the one in the statement of cash flows results from overdrafts, cash pool loans granted by entities not subject to consolidation due to the overall immateriality and exchange gains and losses on measurement of cash on foreign currency accounts.

As at 31 December 2016, the balance of restricted cash included mainly cash on the accounts for bid bonds of PLN 79 227 thousand and cash on the accounts used for the settlement of electricity and emission allowances traded on the Polish Power Exchange, i.e. Towarowa Giełda Energii S.A., of PLN 49 000 thousand.

354 733 327 715
restricted cash 29
29. Cash and cash equivalents
Export table to Excel Zoom
As at
31 December 2016
As at
31 December 2015
Cash at bank and in hand 368 274 353 428
Short-term deposits (up to 3 months) 16 450 10 722
Other 157 762
Total cash and cash equivalents presented in the statement
of financial position, of which:
384 881 364 912
restricted cash 144 404 206 254
Bank overdraft (15 156) (10 206)
Cash pool (16 095) (29 377)
Foreign exchange 1 103 2 386
Total cash and cash equivalents presented
in the statement of cash flows
354 733 327 715

The difference between the balance of cash presented in the statement of financial position and the one in the statement of cash flows results from overdrafts, cash pool loans granted by entities not subject to consolidation due to the overall immateriality and exchange gains and losses on measurement of cash on foreign currency accounts.

As at 31 December 2016, the balance of restricted cash included mainly cash on the accounts for bid bonds of PLN 79 227 thousand and cash on the accounts used for the settlement of electricity and emission allowances traded on the Polish Power Exchange, i.e. Towarowa Giełda Energii S.A., of PLN 49 000 thousand.

144 404 206 254
White certificates white certificates "White" certificates "white" certificates Certificates confirming the saving of a specific quantum of energy as a result of completing investments to enhance energy efficiency.
Biomass biomass Denotes a biodegradable fraction of products, waste and residue from agricultural and forestry production and related branches of industry, including fishing and aquaculture, and biogas and a biodegradable fraction of industrial and communal waste.
Sub peak power generation units sub peak power generation units Power generation units used during a period when the power system has a higher demand for capacity. Power generation units in this class are used from 2000 to 4000 hours a year.
Peak power generation units peak power generation units Power generation units used only during a period when the power system has the highest demand for capacity. Power generation units in this class are used fewer than 2000 hours a year.
Blue certificates blue certificates "Blue" certificates "blue" certificates Certificates confirming the generation of energy from agricultural biomass.
CAPEX Capital expenditures.
Red certificates red certificates "Red" certificates "red" certificates Certificates confirming the generation of energy in highly-efficient coal co-generation.
Net debt net debt Liabilities for loans and borrowings less cash and cash equivalents.
Dividend dividend Portion of a company’s net earnings per share designated for payment to shareholders.
EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization.
Electromobility electromobility Using electric vehicles, both individual vehicles such as an electric car, electric scooter, electric motorcycle and electric bicycle and public transport means: trams, trolleybuses and trains. The assumptions for the Electromobility Development Plan and the domestic framework for the policy of alternative fuel infrastructure development call for there being one million electric vehicles on Polish roads by 2025. TAURON is conducting research and analyses on developing, promoting and disseminating electromobility among Polish nationals, developing the electromobility industry in Poland and in particular collaborating in launching and implementing the findings of scientific and technical work in this area. Moreover, jointly with PGE, Energa and Enea, TAURON has submitted an application to the Office of Competition and Consumer Protection to receive a permit to establish a company called ElectroMobilityPoland to create grounds for developing electromobility.
EMAS EMAS Eco Management and Audit Scheme, an EU instrument to encourage all types of organizations to improve their environmental protection constantly. Functions on the basis of Regulation (EU) no. 1221/2009 of the European Parliament and of the Council of 25 November 2009 on the voluntary participation by organizations in a Community eco-management and audit scheme (EMAS). The EMAS requirements constitute guidelines for organizations to structure their environmental protection duties, optimize costs and effectively manage energy and resources. EMAS is also a system for reporting an organization’s environmental impact making it easier to conduct dialogue in this area with stakeholders. Registration in the EMAS system means that an organization has satisfied the most rigorous environmental requirements.
Prosumer energy prosumer energy Generation of electricity, chiefly for one’s own needs and on a small-scale in installations harnessing renewable energy sources. Households and businesses that do this are called prosumers, meaning that they simultaneously play the role of energy producer and consumer.
Energy from distributed sources energy from distributed sources energii ze źródeł rozproszonych energetyka rozproszona rozproszone wytwarzanie generacja rozproszona energetyki rozproszonej generacji rozproszonej distributed energy Generation of energy by small generation units or facilities connected directly to distribution grids or located in the user’s electrical energy grid that usually generate electricity from renewable energy sources or non-conventional sources, frequently in cogeneration with the generation of thermal energy (distributed cogeneration). The following parties, for instance, may be part of a distributed generation grid: prosumers, energy cooperatives and municipal power plants.
Purple certificates purple certificates "Purple" certificates "purple" certificates Certificates confirming the generation of energy from methane captured in mines.
grid parity Grid parity Signifies the equivalence of the production costs of renewable energy with the energy generated in conventional power plants.
TGE’s FCM Indices Towarowa Giełda Energii (TGE) is the power exchange running the following markets: electricity (Forward Commodity Market - FCM), Day-Ahead Market - DAM, Intraday Market - IDM) and gas (FCMg, DAMg) and the Property Right Market.
smart metering Smart metering Comprehensive and integrated information system encompassing electrical energy smart meters for users of energy, telecommunication infrastructure, central database and management system. Smart metering systems support two-way communication in real time between information systems and electronic electricity meters installed in customers’ locations. Moreover, they may automate the entire billing process for energy users - from obtaining metering data to processing and aggregating them to issuing invoices.
Stakeholder stakeholder stakeholders Natural or legal entity (individual, community, institution, organization, office etc.) which may affect the company or remain under the influence of its actions.
IoT Internet of Things – concept according to which clearly identified objects may directly or indirectly collect, process or exchange data via computer network.
Emergency Cold Reserve IRZ Mechanism introduced by the transmission system operator in 2016. It involves the TSO paying the owners of generation sources which are planned to be withdrawn for keeping them ready to run in response to the operator’s instruction during the anticipated periods of capacity shortage.
ISO 14001 PN-EN ISO 14001:2005 standard PN-EN 14001 standard One of the ISO standards used in managing environmental protection. This standard designated for all organizations regardless of their type and size defines the requirements whose satisfaction supports the achievement of environmental (for instance preventing the emission of pollutants) and economic objectives.
Covenant covenant Contractual clause, order or ban imposed on a borrower to minimize the risk of its invsolvency. Covenents most frequently constitute protection for sources of debt payment to creditors, e.g. by banning further borrowing or disposing of assets.
Aggregate aggregate Bulk organic or mineral material used mainly to produce construction mortar and concrete and build roads.
HV and MV Lines linii WN i SN sieci WN i SN HV - high voltage grid in which the voltage ranges from 110 kV. This grid is used to transmit electrical energy over large distances. MV - medium voltage grid, i.e. an electrical energy grid in which the electrical voltage ranges from 1 kV to 110 kV. Medium voltage is broadly used in electrical energy grids to transmit electrical energy over medium distances and switch energy. It is used as an intermediate voltage between high voltage and low voltage connected to end-users.
Customer loyalization customer loyalization Strategy to acquire and retain customers in this time of growing competition.
Micro-grid micro-grid Electrical energy micro-grid – set of generation equipment, electrical energy storage and receiver units connected in a joint network to ensure the reliable supply of electrical energy and minimize its cost.
Micro-cogeneration micro-cogeneration Technological process involving the cogeneration of thermal and electrical energy based on the utilization of small-scale equipment and medium capacities. Micro-cogeneration may be employed in all facilities in which there is a concurrent need for electrical and thermal energy. The greatest benefits from employing micro-generation are obtained in facilities in which the demand for these two types of energy does not oscillate much or is constant. That is why individual users, hospitals and educational centers, sports centers, hotels and public utilities are usually the most frequent users of cogeneration systems.
MSCI Emerging Markets Europe 10/40 Index Index comprising key companies listed on emerging markets in Europe.
MSCI Poland Index Index comprising more than 20 key companies listed on the Warsaw Stock Exchange.
Best Available Technology BAT The most efficient and sophisticated level of technology development and methods for conducting a given business. BAT are defined for various branches of industry. In the energy sector BAT forms the basis for determining borderline emission quantities, among others, to eliminate, or if that is not practicable, limit emissions and their overall environmental impact.
Sensitive user sensitive user According to the Act entitled Energy Law, a sensitive user is a person to whom a housing allowance has been awarded and who is a party to a comprehensive agreement or electricity sale agreement and who lives in the place where electrical energy is supplied.
Impairment losses impairment losses Losses because of the impairment of non-current assets taken in accordance with the regulations of international accounting IFRS (MSSF) standard.
Corporate Social Responsibility CSR Corporate Social Responsibility – business philosophy and management strategy calling for an organization to take responsibility for the impact exerted by its decisions and actions on society and the environment. Its foundations are rooted in ethical and transparent conduct, taking into consideration the expectations of stakeholders and cultivating good long-term relations with the overall environment. Corporate social responsibility is one of the key methods of achieving sustainable socio-economic development.
PV cells Photovoltaic cell (PV) – semi-conductor material in which the energy of solar radiation is converted into electrical energy.
omni-channel Omni-channel According to the omni-channel idea, the future of commerce is to conduct online sales while simultaneously encouraging customers to make traditional purchases. Online and offline sales during the digital revolution should fluidly penetrate one another.
Operating Capacity Reserve ORM Mechanism of providing operational reserves by the Centrally Discharged Units (JWCD), where they were able to deliver electricity to the system, but for market reasons were not used. It was implemented in Poland in 2014.
RES Renewable energy sources.
PM-RES Property rights to certificates of energy for electrical energy generated in RES.
Polygeneration polygeneration Parallel generation of energy and chemicals.
RESPECT Index Index consisting of companies listed on the Warsaw Stock Exchange to identify companies managed in a responsible and sustainable manner. It takes into account the quality of reporting, the level of investor relations, corporate governance and liquidity, among others, whereby it simultaneously constitutes a real point of reference to measure the attractiveness of companies as investments.
Balancing market balancing market The balancing market is what is referred to as a technical market. That means it is not a place to sell energy. Its purpose is the physical delivery of the energy purchase/sale agreements executed by participants and balancing the demand for electricity with its generation in real time in the national electrical energy system (KSE). The existence of the balancing market is indispensable for the energy market to function. Entities that buy energy have an obligation to participate in this market.
CATALYST Market Catalyst market Bond market. It is run on the transaction platforms of the Warsaw Stock Exchange and BondSpot.
SAIDI System average interruption duration index in the supply of electricity calculated in minutes per user. It is a reliability index whose value is the sum of the products of interruption duration in energy supply and the number of users affected by the consequences of such an interruption during a year divided by the total number of users connected to a grid.
SAIFI System average interruption frequency index of long interruptions in energy supply. It is a reliability index whose value is the number of users affected by the consequences of all such interruptions during a year divided by the total number of users.
Gangue gangue The rock that is extracted from a deposit of a given mineral that is considered to be unusable waste.
Smart City smart city Smart city is a project involving the implementation of specific solutions exerting a real impact on citizens. One example is supplying tools to urban residents to monitor energy consumption, among others. This is possible thanks to the special platform called eLicznik (eMeter). TAURON supplies smart meters, for instance, under the Smart City Wrocław project.
Smart Home smart home System to control a smart home. SMART HOME technologies control burglar alarms, temperature control and electricity supply systems. This is a real-time power consumption monitoring solution that TAURON offers via a platform to check readings from the smart power meter.
Smart grid smart grid Smart electrical energy grids to facilitate communication between participants on the energy market to supply energy services while cutting costs and enhancing efficiency and integrating distributed sources of energy, including renewable energy.
smart metering Smart metering Smart metering system – electronic system used to measure energy consumption obtaining more information than from a conventional meter, and to send and receive data through electronic communication.
small carbonate sorbent Small carbonate sorbent Fine carbonate sorbent (limestone powder) – is a product derived from the process of dehydrating and profound milling of limestone whose active ingredient is calcium carbonate, CaCO3. Fine carbonate sorbent is used in processes to desulfurize flue gas – to remove SOx.
Enterprise Risk Management System ERM Set of rules, standards and tools to accomplish the fundamental objective of risk management i.e. ensuring the security of the TAURON Group’s operations. This system is regulated by the document entitled Enterprise Risk Management System in the TAURON Group, defining the TAURON Group’s enterprise risk management framework and rules.
Tauronet tauronet TAURON Group’s corporate intranet portal, one of the most important tools of communicating with employees. One of the largest platforms of its type in Poland at the time of publishing this report.
CCS Carbon dioxide capture, transport and geological storage technology.
CCU Capture and use (management) of carbon dioxide, eg. in the the chemical industry.
Smart Technology smart technology Control system in a smart home, among others - it is responsible for the safety and living comfort of residents.
Towarowa Giełda Energii S.A. Polish Power Exchange TGE Towarowa Giełda Energii (TGE) (Polish Power Exchange) is the only licensed power exchange in Poland. Presently, TGE runs the following markets: Day-Ahead Market (DAM), Commodity Forward Market with physical delivery (CFM), Property Rights Market for RES and Cogeneration. TGE also keeps a register of the Certificates of Origin for electrical energy produced in RES and in highly efficient cogeneration sources and the CO2 Emission Allowance Market.
Energy Regulatory Office ERO Government authority regulating the Polish energy market (electricity and gas, among others).
Coal winnings coal winnings The rock material taken from the mine face. It includes the mineral and gangue.
WACC Financial ratio - weighted average cost of capital.
WIBOR Warsaw Inter Bank Offered Rate Warsaw Inter Bank Offered Rate - interest rate used on the Polish interbank market for interbank loans.
WIG Index comprising all the companies listed on the Main Market of the Warsaw Stock Exchange that fulfill the basic criteria for inclusion in its indices.
WIG20 Index comprising the 20 largest and most liquid companies listed on the Main Market of the Warsaw Stock Exchange.
WIG30 Index comprising the 30 largest and most liquid companies listed on the Main Market of the Warsaw Stock Exchange.
WIG-Energy Sectoral index comprising companies participating in the WIG index and simultaneously classified in the energy generation sector.
WIG-Poland National index comprising only the domestic companies listed on the Main Market of the Warsaw Stock Exchange that fulfill the basic criteria for inclusion in its indices.
Underground mining pit underground mining pit Space created as a result of mining works.
Highly-efficient cogeneration high-efficiency cogeneration Generating electrical or mechanical energy and usable thermal energy in cogeneration to save the original energy used in the cogeneration unit in an amount no lower than 10% compared to the generation of electrical energy and thermal energy in separate systems or in a cogeneration unit with an installed electricity capacity under 1 MW compared to the generation of electrical energy and thermal energy in separate systems.
Green certificates green certificates "Green" certificates "green" certificates Certificates of origin, i.e. a document that confirms the generation of electricity with renewable energy sources. The green certificate system has been in force in Poland since 1 October 2005 (and has changed in the new RES Act).
Yellow certificates yellow certificates "Yellow" certificates "yellow" certificates Certificate certifying the origin of energy. Operators of cogeneration units fired with gaseous fuels or with a total installed power source of less than 1 MW may be compensated with yellow certificates.
TPA Third Party Access - TPA is one of the most important principles (besides unbundling) on which the deregulated energy market is founded. TPA gives an energy user the right to buy it from any energy seller of its choosing.
EUA CO2 emission unit.
IFRS International Financial Reporting Standards – standards and their interpretations approved by the International Accounting Standards Board (IASB).
RFX Request for proposal.
Global Reporting Index GRI Independent international organization whose mission is to create a joint global framework for communicating responsibility and sustainable development. The GRI guidelines are an international reporting standard for organizations regardless of size, business sector and venue. Their application gives a guarantee of consistency in terminology and indicators.
International Integrated Reporting Council IIRC The International Integrated Reporting Council is an organization whose purpose is to create globally accepted integrated reporting guidelines based on combining financial, environmental, social and corporate governance reporting in a clear, succinct, coherent and comparable format. It consists of global leaders such as the International Federation of Accountants (IFAC), the International Accounting Standards Board, the United Nations Environmental Program (UNEP), the International Organization of Securities Commissions, the World Business Council for Sustainable Development and the Global Reporting Initiative (GRI).
integrated reporting non-financial reporting standard International integrated reporting standard encompassing financial and non-financial data devised by IIRC.

GRI indicators