13. Information on operating segments
The Group presents information concerning segments for the current and comparative reporting periods in accordance with IFRS 8 Operating Segments.
The organization and management of the Group is carried out on a segment basis, taking into account the type of products and services offered. Each segment constitutes a strategic business entity offering different products and operating on different markets.
The Group applies the same accounting principles (policy) to all operating segments. The Group accounts for transactions between segments as if they referred to unrelated parties, i.e. using current market prices. Revenue from transactions between segments is eliminated in the consolidation process.
After elimination of costs arising from intercompany transactions, general and administrative expenses of the Parent Company are presented under unallocated expenses. General and administrative expenses of the Parent Company are incurred for the benefit of the entire Group and cannot be directly attributed to the specific operating segment.
Segment assets do not include deferred tax, income tax receivables or financial assets, except for receivables from buyers and other financial receivables, assets relating to gain on measurement of commodity financial derivative instruments as well as cash and cash equivalents, which represent segment assets.
Segment liabilities do not include deferred tax, income tax liability or financial liabilities, except for liabilities to suppliers, capital commitments and payroll liabilities as well as liabilities relating to loss on measurement of commodity derivative instruments, which represent segment liabilities.
The Group’s financing (including financial revenue and costs) and income tax are monitored at the Group level and they are not allocated to segments.
None of the Group’s operating segments has been combined with another segment to create reporting operating segments.
The Management Board separately monitors operating results of the segments in order to take decisions concerning allocation of the resources, to assess the effects of the allocation and to evaluate performance. The evaluation of performance is based on EBITDA and operating profit or loss. The Group defines EBITDA as EBIT increased by depreciation, amortization and write-offs for non-financial assets. TAURON Group recognizes write-downs on non-financial assets of entities consolidated using the full method and share in write-downs on non-financial assets of entities measured using the equity method as write-downs on non-financial assets. EBIT is defined by the Group as the profit/(loss) before tax, financial income and costs, i.e. operating profit/(loss).
In addition to the key operating segments listed above, the TAURON Group also conducts operations in quarrying stone (including limestone) for the power industry, metallurgy, construction and highway engineering industry as well as in the area of production of sorbents for use in wet desulphurisation installations and fluidised bed boilers (Kopalnia Wapienia Czatkowice Sp. z o.o.). The operations of TAURON Obsługa Klienta Sp. z o.o., Finanse Grupa TAURON Sp. z o.o., Bioeko Grupa TAURON Sp. z o.o., Usługi Grupa TAURON Sp. z o.o. and Polska Energia-Pierwsza Kompania Handlowa Sp. z o.o. are also treated as other operations of the Group.
In connection with the disposal of 100% of shares in TAURON Wydobycie S.A., which is described in more detail in Note 3 of consolidated financial statements, the operations of the above company, previously classified within the Mining operating segment, were classified as discontinued operations of the Group.
| Operating segments | Core business | Subsidiaries / Companies accounted for using the equity method |
|---|---|---|
| Generation | ||
 
|
Electricity generation in conventional sources, including cogeneration.
Production, distribution and sales of heat |
TAURON Wytwarzanie S.A. TAURON Ciepło Sp. z o.o. TAURON Serwis Sp. z o.o. Łagisza Grupa TAURON Sp. z o.o. Energetyka Cieszyńska Sp. z o.o. TAURON Inwestycje Sp. z o.o. 1TAMEH HOLDING Sp. z o.o.2 TAMEH POLSKA Sp. z o.o.2 TAMEH Czech s.r.o.2 Elektrociepłownia Stalowa Wola S.A.2 |
| Renewable Energy Sources | ||
 |
Generation of electricity in renewable sources | TAURON Ekoenergia sp. z o.o. TEC1 Sp. z o.o. TAURON Zielona Energia Sp. z o.o. TEC1 spółka z ograniczoną odpowiedzialnością Mogilno I sp.k. TEC1 spółka z ograniczoną odpowiedzialnością Mogilno II sp.k. TEC1 spółka z ograniczoną odpowiedzialnością Mogilno III sp.k. TEC1 spółka z ograniczoną odpowiedzialnością Mogilno IV sp.k. TEC1 spółka z ograniczoną odpowiedzialnością Mogilno V sp.k. TEC1 spółka z ograniczoną odpowiedzialnością Mogilno VI sp.k. TEC1 spółka z ograniczoną odpowiedzialnością EW Śniatowo sp.k. TEC1 spółka z ograniczoną odpowiedzialnością EW Dobrzyń sp.k. TEC1 spółka z ograniczoną odpowiedzialnością EW Gołdap sp.k. TEC1 spółka z ograniczoną odpowiedzialnością Ino 1 sp.k. WIND T1 Sp. z o.o. AVAL-1 Sp. z o.o. Polpower Sp. z o.o. „MEGAWATT S.C.” Sp. z o.o. WIND T4 Sp. z o.o. WIND T340MW Sp. z o.o. FF Park PV 1 Sp. z o.o. Windpower Gamów Sp. z o.o. TAURON Inwestycje Sp. z o.o. 1 |
| Distribution | ||
 |
Distribution of electricity | TAURON Dystrybucja S.A. TAURON Dystrybucja Pomiary sp. z o.o. |
| Sales | ||
 |
Wholesale of electricity as well as trading in CO2 emission rights and property rights of energy origin and sales of electricity to domestic end consumers or entities re-selling electricity | TAURON Polska Energia S.A. TAURON Sprzedaż Sp. z o.o. TAURON Sprzedaż GZE Sp. z o.o. TAURON Czech Energy s.r.o. TAURON Nowe Technologie S.A. |
2 Companies accounted for using the equity method.