Annual Report 2017

Assets [PLN k]	As at:		Change	% change
Assets [PLN k]	31 December 2016	31 December 2017	Change	% change
Fixed assets	19 486 599	22 080 914	2 594 315	13.30%
Property, plant and equipment	18 382 498	20 416 867	2 034 369	11.10%
Perpetual usufruct of land	74 899	105 571	30 672	41.00%
Intangible assets	370 638	418 248	47 610	12.80%
Investment real estates	28 020	26 981	-1 039	-3.70%
Investments in subsidiaries, affiliates and jointly controlled entities	2 518	355 152	352 634	14004.50%
Assets due to deferred income tax	403 257	501 945	98 688	24.50%
Financial assets available for sale	42 482	40 698	-1 784	-4.20%
Financial assets at fair value through profit or loss	112	33 364	33 252	29689.30%
Derivatives	40 267	29 553	-10 714	-26.60%
Trade and other receivables	30 690	30 729	39	0.10%
Funds accumulated as part of the Mine Liquidation Fund	111 218	121 806	10 588	9.50%
Current assets	5 049 920	6 232 080	1 182 160	23.40%
CO₂ Emission allowances	417 073	595 533	178 460	42.80%
Inventories	448 941	846 187	397 246	88.50%
Trade and other receivables	1 824 488	1 903 568	79 080	4.30%
Receivables due to current income tax	9 541	149 859	140 318	1470.70%
Financial assets held to maturity	478	478	-	-
Financial assets at fair value through profit or loss	4 852	49 329	44 477	916.70%
Cash and cash equivalents	2 340 217	2 687 126	346 909	14.80%
Fixed assets held for sale	4 330	-	-4 330	-100.00%
Total assets	24 536 519	28 312 994	3 776 475	15.40%

Change factors for fixed assets (increase by PLN 2 594 million):

an increase in property, plant and equipment by PLN 2 034 million mainly due to the acquisition of EEP assets, the commissioning of unit No. 11 and increased expenditure on network assets - in the distribution segment
the increase in investments in subsidiaries by PLN 353 million mainly due to the acquisition of new shares in the increased share capital of Polska Grupa Górnicza sp. o.o., acquisition of shares in Polimex-Mostostal SA and Elektrownia Ostrołęka SA
increase in financial assets at fair value through profit or loss - PLN 33 million is mainly related to the valuation of call options for shares in Polimex-Mostostal SA

Change factors for current assets (increase by PLN 1 182 million):

an increase in inventories by PLN 397 million mainly due to greater inventories of coal, certificates of origin, biomass and spare parts for unit No. 11
an increase in cash and cash equivalents by PLN 347 million results mainly from the acquisition of EEP assets and investment and financial activities
an increase in the value of CO₂ emission allowances by PLN 178 million is mainly due to the acquisition of EEP (acquisition of new CO₂ emission allowances for redemption in 2018)
an increase in financial assets at fair value through profit or loss - PLN 45 million results from the valuation of forward contracts for the purchase of electricity and gas and property rights

Liabilities [PLN k]	As at:		Change	% change
Liabilities [PLN k]	31 December 2016	31 December 2017	Change	% change
Total equity	13 011 729	13 999 669	987 940	7.60%
Share capital	588 018	588 018	-	-
Capital from the surplus of the issue price over the nominal value	3 632 464	3 632 464	-	-
Capital from the revaluation of financial instruments	744	741	-3	-0.40%
Other equity	-25 652	-27 101	-1 449	-5.60%
Reserve capital from the valuation of hedging instruments	33 826	25 967	-7 859	-23.20%
Profits retained	7 946 612	8 858 130	911 518	11.50%
Non-controlling shares	835 717	921 450	85 733	10.30%
Liabilities	11 524 790	14 313 325	2 788 535	24.20%
Long-term liabilities	8 606 757	10 063 012	1 456 255	16.90%
Short-term liabilities	2 918 033	4 250 313	1 332 280	45.70%
Total liabilities and equity	24 536 519	28 312 994	3 776 475	15.40%

Change factors for long-term liabilities (increase by PLN 1 456 million)

PLN 1 444 million increase in loans, borrowings and debt securities - mainly due to the launch of subsequent loan tranches in the EIB for the financing of a multi-annual investment plan to modernize and expand Enea Operator's energy networks, issue new bonds under the „Scheme Agreement up to PLN 700 million" and new bonds - under the „Scheme Agreement up to PLN 3 000 million ". In addition, in the reporting period there was a buyout of bonds by LW Bogdanka and repayment of the EIB loan capital instalments and the "Program Agreement up to PLN 700 million"
PLN 52 million decrease in liabilities due to employee benefits results mainly from the release of the coal allowance provision for future and current pensioners of LW Bogdanka
PLN 53 million increase in the deferred tax liability mainly relates to the reversal of the impairment loss on non-current assets and the change in provisions for LW Bogdanka (in particular due to the coal allowance)

Change factors for short-term liabilities (increase by PLN 1 332 million)

PLN 909 million increase in trade and other liabilities results, for instance, from the EEP acquisition, higher liabilities under fixed assets under construction resulting from the construction of unit No. 11 and compensation for termination of contracts for the purchase of certificates of electricity origin
2PLN 294 million increase in provisions for other liabilities and other encumbrances results mainly from the change in provisions for CO₂ emission allowances and potential claims regarding the termination of contracts for the purchase of certificates of origin of electricity
PLN 90 million increase in loans, borrowings and debt securities results from classifying to the short-term liabilities parts of the EIB loan tranches drawn during the reporting period and issuance of new bond series

Activities
of the group