Notes

INFORMATION ABOUT THE CAPITAL GROUP AND BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

1. General information about the TAURON Polska Energia S.A. Capital Group and its Parent

2. Composition of the TAURON Capital Group and joint ventures

2.1. Assuming control over companies operating wind farms owned by the in.ventus group

2.2. Other changes in the TAURON Group

3. Statement of compliance

4. Going Concern

5. Functional and Presentation Currency

6. Accounting principles (policy) and material values based on professional judgment and estimates

7. Standards, amendments to standards and interpretations which have been published but are not yet effective

8. Changes in the accounting policies

8.1. Application of new standards, amendments to standards and interpretation

8.2. Other changes in accounting and presentation principles applied by the Group

BUSINESS SEGMENTS

9. Information on operating segments

9.1. Operating segments

9.2. Geographic areas of operations

IMPAIRMENT OF NON-FINANCIAL ASSETS

10. Impairment of Non-Financial Assets

NOTES TO THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

11. Sales revenue

12. Recompensation revenue

13. Cost of goods, products, materials and services sold (cost of sales)

13.1. Expenses by type

13.2. Employee benefits expenses

13.3. Depreciation and amortization charges and impairment losses

14. Other operating revenue and expenses

15. Finance income and costs

16. Costs arising from leases

17.1. Tax expense in the statement of comprehensive income

17.2. Reconciliation of the effective tax rate

17.3. Deferred income tax

18. Earnings (loss) per share

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

19. Property, plant and equipment

20. Right-of-use assets

22. Energy certificates and CO2 emission allowances

22.1. Long-term energy certificates and CO2 emission allowances

22.2. Short-term energy certificates and CO2 emission allowances

22.3. Balance of CO2 emission allowances recorded in the Union Registry

23. Other Intangible Assets

24. Investments in joint ventures

25. Loans granted to joint ventures

26. Other financial assets

27. Other non-financial assets

27.1. Other non-current non-financial assets

27.2. Other current non-financial assets

28. Inventories

29. Receivables from buyers

30. Income tax receivables

31. Receivables arising from other taxes and charges

32. Cash and cash equivalents

33.1. Issued capital

33.2. Shareholder rights

33.3. Reserve capital

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

33.5. Revaluation reserve from valuation of hedging instruments

33.6. Non-controlling interest

34. Dividends paid

35.1. Loans and borrowings

35.2. Bonds issued

35.3. Debt agreement covenants

35.4. Lease liabilities

36. Provisions for employee benefits

36.1. Provisions for post-employment benefits and jubilee bonuses

36.2. Provisions for employment termination benefits and other provisions for employee benefits

37. Provisions for dismantling fixed assets, restoration of land and other provisions

37.1. Provision for mine decommissioning costs

37.2. Provision for restoration of land and dismantling and removal of fixed assets

38. Provisions for liabilities due to CO2 emission allowances and energy certificates

38.1. Provision for CO2 emission liabilities

38.2. Provision for the obligation to surrender energy certificates

39. Other provisions

39.1. Provision for use of real estate without contract

39.2. Provisions for onerous contracts

39.3. Provisions for counterparty claims, court disputes and other provisions

40. Accruals, deferred income and government grants

40.1. Deferred income and government grants

40.2. Accrued expenses

41. Liabilities to suppliers

42. Capital commitments

43. Liabilities arising from other taxes and charges

44. Other financial liabilities

45. Other current non-financial liabilities

EXPLANATORY NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

46. Significant items of the consolidated statement of cash flows

46.1. Cash flows from operating activities

46.2. Cash from/used in investing activities

46.3. Cash from/used in financing activities

FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

47. Financial instruments

47.1. Carrying amount and fair value of financial instrument classes and categories

47.2. Revenue, expenses, gain and loss items included in the statement of comprehensive income by category of financial instruments

47.3. Derivative instruments and hedge accounting

48. Principles and objectives of financial risk management

48.1. Credit risk

48.1.1. Credit risk related to receivables from buyers

48.1.2. Credit risk related to other financial receivables

48.1.3. Credit risk related to cash and cash equivalents and derivatives instruments

48.1.4. Credit risk related to loans granted

48.2. Liquidity risk

48.3. Market risk

48.3.1. Interest rate risk

48.3.2. Currency risk

48.3.3. Raw material and commodity price risk related to commodity derivative instruments and price risk related to units

49. Operational risk

OTHER INFORMATION

50. Contingent liabilities

51. Security for liabilities

52. Related-party disclosures

52.1. Transactions with joint ventures

52.2. Transactions with State Treasury companies

52.3. Compensation of the executives

53. Finance and capital management

54. Fee of the certified auditor or the entity authorized to audit financial statements

55. Other material information

56. Events after the end of the reporting period

Consolidated statement of cash flows