Financial capital

The sources of finance for TAURON Group are the shareholder’s equity, cash generated from its business activity and its debt. The Group is pursuing a number of capital-intensive investments, mainly in the area of distribution. In 2022, the value of investments exceeded PLN 3.96 billion.

TAURON Group consistently increases the range of sources of finance that it takes advantage of to support projects driving the TAURON Group Stategy and the Green Transition.

In 2022, TAURON signed a new syndicated loan facility of PLN 4.0 billion – the funds can be used to refinance existing facilities, finance TAURON Group’s capital expenditures (including RES) and provide funding to its general and corporate spending (except for coal asset expenditures).

The signed syndicated facility is linked to certain sustainability indicators, such as the RES capacity growth rate and the CO₂ emission reduction rate.

The transition towards a low-carbon economy and related investments in the electricity sector are supported by European Union funds, such as certain earmarked funds, research programmes and other instruments supporting modern and sustainable investments.

As the Group pursues a responsible environmental and climate policy and addresses ESG factors, it is able raise further external financing.

TAURON achieves financial results that allow further development and implementation of strategic projects. Despite the changes in the business environment, both the continuous growth in revenue and the cost optimisations allow it to maintain a stable result overall and keep the net debt-to-EBITDA ratio at an acceptable level.

Key data on TAURON Group financial assets in 2020-2022

Key information	2022	2021	2020
Shareholder’s equity (PLN m)	16 614	16 524	16 727
PP&E (PLN m)	35 053	33 855	33 585
Regulatory Asset Value of Distribution area (PLN m)	20 499	18 988	18 255
Net debt (multiple)	2.9x	2.4x	2.5x
Capital expenditures (PLN m)	3 962	2 932	4 039

Financial assets management

At TAURON Group, financial assets are managed through:

financial stability maintained using measures that optimise expenditures and the asset structure;
consistent implementation of the financing optimisation programme;
cooperation with banks and financial institutions;
procurement of optimal sources of finance;
preferential loans towards investments that have a positive environmental impact;
financial risk hedging;
effective management of group liquidity.

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2020-2022 impact of TAURON Group’s measures in the area of financial assets management

Area of impact	2022	2021	2020
Sales revenue (PLN m)**	37 341	25 614	20 850
EBITDA (PLN m)	4 016	4 152	4 226
EBITDA margin (%)	10,8%	16,2%	20,3%
Cash flow from operating activities (PLN m)	2 775	4 955	4 042
Net debt/EBITDA (multiple)	2.9x	2.4x	2.5x
Net profit (loss) (PLN m)**	(134)	385	(2 173)
Long-term rating*	BBB-	BBB-	BBB-

* on 18 October 2021, Fitch confirmed TAURON Polska Energia's long-term ratings in local and foreign currencies at 'BBB-' with a stable outlook.
** from continuing and discontinued operations

Financial assets in the context of other assets and capital

In the Group Strategy for 2022-2030, financial assets play a crucial role. Emphasis has been put on the stable financial situation that supports an efficient and effective organisation. TAURON Group is going to focus on procuring finance for its investments and operations, also using strategic and capital partnerships. One of the key directions is to maximise the use of funds that are dedicated to energy transition programmes. This approach results from both the defined goal of efficiency improvement (as measured by EBITDA growth rate per employee) as well as the need to implement the ambitious investment path. Investments will be carried out mainly in the area of electricity distribution and renewable energy sources, with over 80% of the planned expenditures, and in the area of district heating, which will be allocated over 8% of TAURON Group’s expenditures that are planned for the heat source decarbonisation and the district heating upgrading.

TAURON Group's transition requires a stronger distribution infrastructure that can be achieved through expansion and modernisation, new consumers connected and digitisation. Being the priority, these efforts will have the project finance secured. Likewise is the case of the increase in RES capacity which will also require a significant financial investment.

As the largest supplier of heat to the greater metropolitan area of Silesia and Dąbrowa, TAURON needs to ensure a stable heat supply for companies and households that will be economically efficient. Increasing environmental requirements, climate expectations and the increasing demand for district heating also require significant investments.

The 2030 investment programme will allow TAURON Group to remain the leader in the area of electricity distribution and a key player in the electricity and heat generation market in Poland.

For more information on financial assets, please refer to TAURON Group Financial Results.

Key data on TAURON Group financial assets in 2020-2022

Financial assets management

2020-2022 impact of TAURON Group’s measures in the area of financial assets management

Financial assets in the context of other assets and capital

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