2.1. KEY INFORMATION ON THE GROUP AND ITS REPORTABLE SEGMENTS.

The­se con­so­li­da­ted fi­nan­cial sta­te­ments in­c­lu­de fi­nan­cial in­for­ma­tion of the Pa­rent and of:

  • 15 direct subsidiaries of PGNiG, and
  • 8 indirect subsidiaries of PGNiG.

PGNiG S.A. holds 100% of sha­res in the con­so­li­da­ted sub­si­dia­ries, with the excep­tion of PGNiG GAZOPROJEKT S.A., in which PGNiG holds 93.73% of sha­res.

In the ca­se of Pol­ski Gaz To­wa­rzy­stwo Ubez­pie­czeń Wza­jem­nych, PGNiG is that com­pa­ny­’s so­le equ­ity hol­der hol­ding 100% of its sha­re ca­pi­tal, whi­le the re­ma­ining mem­bers hold sha­res in the com­pa­ny­’s re­se­rve ca­pi­tal.

The as­sets and lia­bi­li­ties of com­pa­nies in which the Gro­up holds no­n-con­trol­ling in­te­re­sts are not ma­te­rial.

The Gro­up iden­ti­fies fi­ve re­por­ta­ble seg­ments.

Be­low is pre­sen­ted a clas­si­fi­ca­tion of the Gro­up’s ful­ly­-con­so­li­da­ted en­ti­ties by re­por­ta­ble seg­ment. For mo­re in­for­ma­tion on the Gro­up struc­tu­re, see the Di­rec­tor­s’ Re­port on the ope­ra­tions of PGNiG S.A. and the PGNiG Gro­up.

Fi­gu­re 1 Gro­up struc­tu­re by ope­ra­ting seg­ments 

The re­por­ta­ble seg­ments ha­ve be­en iden­ti­fied ba­sed on the ty­pe of bu­si­ness con­duc­ted by the Gro­up com­pa­nies. The in­di­vi­du­al ope­ra­ting seg­ments we­re ag­gre­ga­ted in­to re­por­ta­ble seg­ments ac­cor­ding to the ag­gre­ga­tion cri­te­ria pre­sen­ted in the ta­ble be­low. The pa­ren­t’s Ma­na­ge­ment Bo­ard is the chief ope­ra­ting de­ci­sion ma­ker (CODM). 

Segment
Description
Operating segments and aggregation criteria
Exploration and Production
The segment’s business focuses on extracting hydrocarbons from deposits and preparing them for sale. It involves the process of exploration for and production of natural gas and crude oil, from geological surveys and geophysical research, through to drilling, development of gas and oil fields, and production of hydrocarbons. The segment sells natural gas to customers outside the Group and to other segments of the PGNiG Group. It also sells crude oil and other products in Poland and abroad.
This reportable segment comprises the operating segments of PGNiG S.A. (the exploration and production business) as well as the Group companies specified in Figure 1.
The key aggregation criteria were similarity of products and services; similar characteristics of the production process and of the customer base; and economic similarities (exposure to the same market risks, as reflected in the correlation of results (margins) generated by the aggregated operating segments).
Trade and Storage
The segment’s principal business activities are sale of natural gas (imported, produced or purchased on gas exchanges), operation of underground gas storage facilities for trading purposes (Mogilno, Wierzchowice, Kosakowo, Husów, Brzeźnica, Strachocina, Swarzów and the storage system in Ukraine), and electricity trading.
This reportable comprises the operating segments of PGNiG S.A. related to the gas fuel and electricity trading business, as well as the Group companies specified in Figure 1.
T
he segment operates seven underground gas storage facilities to ensure Poland’s energy security and to build a gas portfolio that meets the market demand, which is subject to seasonal fluctuations.
The key aggregation criteria were similarity of products and services, similarity of the customer base, and similar economic characteristics.
Distribution
The segment’s principal business activity consists in distribution of natural gas via distribution networks to retail, industrial and wholesale customers, as well as operation, maintenance (repairs) and expansion of gas distribution networks.
This operating segment overlaps with the reportable Distribution, and comprises Polska Spółka Gazownictwa Sp. z o.o. and its subsidiaries specified in Figure 1.
Generation
The segment’s principal business activities consist in generation and sale of electricity and heat.
This reportable comprises the operating segments of PGNiG TERMIKA S.A. and its subsidiary PGNiG TERMIKA Energetyka Przemysłowa S.A.
The key aggregation criteria were similarity of products and services, similarity of the customer base, and similar economic characteristics.
Other segments
This segment comprises operations which cannot be classified into any of the segments listed above, i.e. the functions performed by the PGNiG Corporate Centre, engineering design and construction of structures, machinery and equipment for the extraction and energy sectors, as well as catering and hospitality and insurance services.
It includes PGNiG S.A.’s activities related to corporate support for other reportable segments, and the Group entities which do not qualify to be included in the other reportable segments, specified under Other Segments in Figure 1.