Projects of the Group with associated entities

Information on associates and joint ventures

The Group holds the following associates and joint ventures:

No.NAME OF ENTITYREGISTERED OFFICE% SHARE IN EQUITY* 
   31.12.201731.12.2016
 Joint ventures of PKO Bank Polski SA   
1Centrum Elektronicznych Usług Płatniczych eService Sp. z o.o.Warsaw3434
 1 EVO Payments International Sp. z o.o.Warsaw100100
 2 EVO Payments International s.r.o.Prague, Czechia100100
 Joint venture of NEPTUN - fizan   
 3 „Centrum Obsługi Biznesu" Sp. z o.o.Poznań41,4441,44
 Associates of PKO Bank Polski SA   
1Bank Pocztowy SABydgoszcz25,000125,0001
 1 Centrum Operacyjne Sp. z o.o. w likwidacji1Bydgoszcz100100
 2 Spółka Dystrybucyjna Banku Pocztowego Sp. z o.o.Warsaw100100
2„Poznański Fundusz Poręczeń Kredytowych" Sp. z o.oPoznań33,3333,33
3FERRUM SAKatowice22,1422,14
 3 FERRUM MARKETING Sp. z o.o.Katowice100100
 4 Zakład Konstrukcji Spawanych FERRUM SAKatowice100100
 5 Walcownia Rur FERRUM Sp. z o.o. w likwidacji2Katowice100-

* share in equity of the direct parent
1 In July 2017, the Extraordinary Shareholders’ Meeting adopted resolution on dissolving the company.
2 In June 2017, the Shareholders’ Meeting adopted a resolution on dissolving the company.

note_41_table_1_pko_pb.xlsx

Name of joint ventures and associatesCore business
Centrum Elektronicznych Usług Płatniczych eService Sp. z o.o.The company offers services which consist of processing transactions involving payment instruments conducted both through POS terminals in Poland and abroad and online, lease of POS terminals, top-ups of mobile phone cards and servicing of gift cards. PKO Bank Polski SA, together with the company, offer comprehensive services which involve attracting and servicing entities which use POS terminals and settling transactions conducted with payment instruments using such terminals.

Both entities jointly participate in tenders, and the cooperation is governed by agreements on, among other things:

  • servicing cashless transactions concluded using payment instruments for bilateral agreements with merchants; 
  • marketing cooperation in respect of services of fundamental importance to the functioning of the products and services offered both by the Bank and the company;
  • the provision of services relating to withdrawals of cash in the Bank’s agent and branch offices and in post offices using Visa and MasterCard payment cards using POS terminals;
  • cooperation in providing services associated with attracting retail outlets which accept payment instruments. 

The company has two direct subsidiaries and exerts full control over these subsidiaries.  
“Centrum Obsługi Biznesu” Sp. z o.o.A joint project of PKO Bank Polski SA, Buildco Poznań SA and the City of Poznań which consists of building a hotel in Poznań. The Bank is a member of a syndicate of banks which granted the company an investment loan for the execution of the said project. The hotel was completed and began operating in 2007. The operating results generated by the company are insufficient to ensure the current, full servicing of the liabilities arising from the loan agreement. At the company’s request, as part of the restructuring of the loans, the syndicate modified the repayment schedule of principal and interest instalments. The schedule is valid until June 2018. From June 2015, the company’s shares are in the portfolio of NEPTUN – FIZ AN – a subsidiary of the Bank.  
Bank Pocztowy SABank Pocztowy SA specializes in standard banking products offered to retail clients and a supplementary offer for micro-businesses and institutional clients. It also operates in the segment of settlements and treasury. As part of the strategic partnership with Poczta Polska SA (a shareholder with 75% minus 10 shares of the company) it uses the potential of a shareholder and develops a range of products in collaboration with stakeholders across the Poczta Polska Group. The company has two direct subsidiaries in which it exercises full control, whereas one of them has been put into liquidation.
“Poznański Fundusz Poręczeń Kredytowych” Sp. z o.o.The company specializes in supporting the development of small- and medium-sized enterprises by providing guarantees and various types of services for business. The company grants guarantees for loans and advances extended by banks, including PKO Bank Polski SA, as well as bank guarantees, lease and factoring transactions, and bid bond guarantees. The entity cooperates with PKO Leasing SA. The company’s offer also includes guarantees for small- and medium-sized enterprises, under the JEREMIE (Join European Resources for Micro to Medium Enterprises), which are re-underwritten mutually at 70% or 80% from the Wielkopolski Regionalny Program Operacyjny, managed by Bank Gospodarstwa Krajowego.

As part of its services for businesses, the company, among other things, prepares business plans, feasibility studies, recovery and restructuring programmes, prepares financial documentation and seeks appropriate forms of financing enterprise operations.
FERRUM SAThe Company’s operations comprise manufacturing welded steel tubes, hollow profiles and insulating tubes. The company has three direct subsidiaries in which it exercises full control, whereas one of them has been put into liquidation.

The company’s shares were taken up under the debt recovery actions (foreclosure of collateral). The company is a public company whose shares are listed on the Warsaw Securities Exchange.

Financial data of associated entities

A summary of the financial data separately for each associate of the Group was presented below. The amounts presented are derived from the financial statements of the specific entities prepared in accordance with IFRS or Polish Accounting Standardsa (PAS). The data for 2016 has been derived from audited financial statements.

Centrum Elektronicznych Usług Płatniczych eService Sp. z o.o.
(in accordance with IFRS) (in PLN million)		31.12.201731.12.2016
Current assets198140
Non-current assets228199
Current liabilities161118
Non-current liabilities2632
 01.01-31.12.201701.01-31.12.2016
Revenues477490
Profit (loss) on continuing operations8898
Profit/(loss) for the period8898
Other comprehensive income61
Total comprehensive income9499
Dividend received from an entity classified as a joint venture1211
note_42_table_2_pko_pb.xlsx

„Centrum Obsługi Biznesu" Sp. o.o. (in accordance with PAS)
(in PLN million)		31.12.201731.12.2016
Current assets1011
Non-current assets8285
Current liabilities2418
Non-current liabilities6074
 01.01-31.12.201701.01-31.12.2016
Revenue2823
Profit/(loss) for the period4(2)
note_41_table_3_pko_pb.xlsx

Bank Pocztowy SA (in accordance with INFRS, data as published by the Company)
(in PLN million)		30/06/201731.12.2016
Total assets7 1076 937
Total liabilities6 5726 413
 01.01-30.06.201701.01-31.12.2016
Revenues221469
Profit (loss) on continuing operations23
Profit/(loss) for the period23
   
Other comprehensive income9(21)
Total comprehensive income11(19)
note_41_table_4_pko_pb.xlsx

„Poznański Fundusz Poręczeń Kredytowych" Sp. z o.o.
(in accordance with PAS) (in PLN million)		31.12.201731.12.2016
Current assets2423
Current liabilities43
Non-current liabilities23
 01.01-31.12.201701.01-31.12.2016
Revenues23
note_41_table_5_pko_pb.xlsx

FERRUM SA (in accordance with INFRS, data as published by the Company)
(in PLN million)		30.09.201731.12.2016
Current assets13797
Non-current assets143168
Current liabilities210201
Non-current liabilities5215
 01.01-30.09.201701.01-31.12.2016
Revenues242316
Profit (loss) on continuing operations(30)1
Profit/(loss) for the period(30)1
Total comprehensive income(30)1
note_41_table_6_pko_pb.xlsx

Financial data of joint ventures

A summary of the financial data separately for each joint venture with each associate of the Group was presented below.

Financial information

JOINT VENTURES (in PLN million)31.12.201731.12.2016
„Centrum Obsługi Biznesu" Sp. z o.o.--
Purchase price1717
Change in the share in net assets(14)(16)
Impairment allowance(3)(1)
Grupa Centrum Elektronicznych Usług Płatniczych eService Sp. z o.o.244227
Value of shares as at the date of obtaining joint control197197
Change in the share in net assets4730
Total244227
note_41_table_7_pko_pb.xlsx

ASSOCIATES (in PLN million)31.12.201731.12.2016
Bank Pocztowy SA Group130133
Purchase price184162
Change in the share in net assets8384
Impairment allowance(137)(113)
„Poznański Fundusz Poręczeń Kredytowych" Sp. z o.o.--
Purchase price22
Change in the share in net assets44
Impairment allowance(6)(6)
FERRUM SA Group1926
Purchase price2525
Change in the share in net assets(6)1
Total149159
note_41_table_8_pko_pb.xlsx

CHANGE IN INVESTMENTS IN JOINT VENTURES (in PLN million)20172016
Investments in joint ventures as at the beginning of the period227206
Share in profits/ (losses)3130
Net impairment allowance(2)2
Dividend(12)(11)
Investments in joint ventures as at the end of the period 244227
note_41_table_9_pko_pb.xlsx

CHANGE IN INVESTMENTS IN ASSOCIATES (in PLN million)20172016
Investments in associates as at the beginning of the period159186
Net impairment allowance(24)(32)
Share in profits/ (losses)(9)5
Share in comprehensive income of associated undertakings1(1)
Increase in equity investment in associates221
Investments in associates as at the end of the period149159
note_41_table_10_pko_pb.xlsx
       

Impairment allowances

In 2017, the Group increased impairment allowance on the shares in Bank Pocztowy SA by PLN 24 million, and increased impairment allowances on the shares of “Centrum Obsługi Biznesu” Sp. z o.o by PLN 1.6 million (maintaining a 100% impairment allowance on capital exposure to the aforesaid company).

As at 31 December 2017, and as at 31 December 2016, the parent entity did not have any share in the contingent liabilities of associates acquired together with another investor.

IMPAIRMENT ALLOWANCES – RECONCILIATION OF MOVEMENTS (in PLN million)20172016
As at the beginning of the period12090
Recognized during the period2632
Reversed during the period-(2)
   
As at the end of the period 146120
   
Net - impact on the income statement(26)(30)
note_41_table_11_pko_pb.xlsx