39. Investments in associates and joint ventures
2019
Selected information on associates and joint ventures
The Group holds the following associates and joint ventures.
| NO. | ENTITY NAME | REGISTERED OFFICE |
BUSINESS ACTIVITIES | % SHARE IN CAPITAL* | |
| 31.12.2019 | 31.12.2018 | ||||
| Joint ventures of the PKO Bank Polski SA | |||||
| 1 | Operator Chmury Krajowej sp. z o.o.** | Warsaw | cloud computing services | 50 | – |
| 2 | Centrum Elektronicznych Usług Płatniczych eService sp. z o.o. | Warsaw | activities supporting financial services, including processing transactions concluded using payment instruments |
34 | 34 |
| 1 EVO Payments International s.r.o. | Prague, the Czech Republic |
activities supporting financial services | 100 | 100 | |
| EVO Payments International sp. z o.o.*** | Warsaw | activities supporting financial services | – | 100 | |
| Joint venture of NEPTUN – fizan | |||||
| 2 „Centrum Obsługi Biznesu” sp. z o.o. | Poznań | Property management | 41.4455 | 41.4455 | |
| Associates of PKO Bank Polski SA | |||||
| 1 | Bank Pocztowy SA | Bydgoszcz | Banking activities | 25.0001 | 25.0001 |
| 2 | „Poznański Fundusz Poręczeń Kredytowych” sp. z o.o. | Poznań | sureties | 33.33 | 33.33 |
*Share in equity of the entity exercising joint control / having a significant impact / the direct parent
**From 5 September 2019, a joint venture of PKO Bank Polski SA; previously a subsidiary with 100% interest in the Bank’s equity.
***On 1 October 2019, a business combination of EVO Payments International sp. z o.o. as the target company and Centrum Elektronicznych Usług Płatniczych eService sp. z o.o. as the acquiring company took place.
A summary of the financial data separately for each joint venture and each associate of the Group is presented below. The amounts presented are derived from the financial statements of the specific entities prepared in accordance with IFRS or Polish Accounting Standards (PAS). In the case of companies which have subsidiaries, the presented data is derived from the consolidated financial statements of these companies The data for 2018 is derived from audited financial statements.
| Centrum Elektronicznych Usług Płatniczych eService sp. z o.o. (in accordance with IFR) | 31.12.2019 | 31.12.2018 |
| Current assets | 291 | 270 |
| Non-current assets | 197 | 219 |
| Current liabilities | 202 | 207 |
| Non-current liabilities | 22 | 20 |
| 01.01-31.12.2019 | 01.01-31.12.2018 | |
| Revenue | 557 | 519 |
| Profit/(loss) for the period | 107 | 87 |
| Other comprehensive income | 2 | 2 |
| Total comprehensive income | 109 | 89 |
| Dividend received from an entity classified as a joint venture | 36 | 22 |
| “Centrum Obsługi Biznesu” Sp. o.o. (in accordance with PAS) | 31.12.2019 | 31.12.2018 |
|---|---|---|
| Current assets | 8 | 10 |
| Non-current assets | 77 | 79 |
| Current liabilities | 38 | 32 |
| Non-current liabilities | 39 | 51 |
| 01.01-31.12.2019 | 01.01-31.12.2018 | |
| Revenue | 26 | 25 |
| Profit/(loss) for the period | – | (1) |
| Bank Pocztowy SA (in accordance with IFRS, data as published by the Company) | 30.06.2019 | 31.12.2018 |
|---|---|---|
| Total assets | 7,884 | 7,565 |
| Total liabilities | 7,280 | 6,963 |
| 01.01-30.06.2019 | 01.01-30.06.2019 | |
| Revenue | 220 | 439 |
| Net profit/(loss) for the period | 11 | 7 |
| Other comprehensive income | (8) | 12 |
| Total comprehensive income | 3 | 19 |
| Poznański Fundusz Poręczeń Kredytowych” Sp. z o.o. (in accordance with PAS) | 31.12.2019 | 31.12.2018 |
|---|---|---|
| Current assets | 31 | 28 |
| Zobowiązania Current liabilities | 4 | 4 |
| Non-current liabilities | 8 | 5 |
| 01.01- 31.12.2019 |
01.01-31.12.2018 | |
| Revenue | 2 | 1 |
| Profit/(loss) for the period | – | – |
| Operator Chmury Krajowej sp. z o.o. (in accordance with IFRS)* | 31.12.2019 | 31.12.2018 |
|---|---|---|
| Current assets | 61 | – |
| Non-current assets | 65 | – |
| Current liabilities | 17 | – |
| Non-current liabilities | 12 | – |
| 01.01-31.12.2019 | 01.01-31.12.2018 | |
| Revenue | 11 | – |
| Profit/(loss) for the period | (23) | – |
*From 5 September 2019, the company is classified as a joint venture. As at 31 December 2018, the company was a subsidiary
Financial information
| JOINT VENTURES | 31.12.2019 | 31.12.2018 |
|---|---|---|
| „Centrum Obsługi Biznesu” sp. z o.o. | – | – |
| Purchase price | 17 | 17 |
| Change in the share in net assets | (14) | (14) |
| Impairment allowances | (3) | (3) |
| The Centrum Elektronicznych Usług Płatniczych eService sp. z o.o. Group | 250 | 256 |
| Value of shares as at the date of obtaining joint control | 197 | 197 |
| Change in the share in net assets | 53 | 59 |
| Operator Chmury Krajowej sp. z o.o. | 39 | – |
| Value of shares as at the date of obtaining joint control | 43 | – |
| Change in the share in net assets | (4) | – |
| Total | 289 | 256 |
| ASSOCIATES | 31.12.2019 | 31.12.2018 |
|---|---|---|
| Bank Pocztowy SA | 88 | 88 |
| Purchase price | 184 | 184 |
| Change in the share in net assets | 78 | 73 |
| Impairment allowances | (174) | (169) |
| „Poznański Fundusz Poręczeń Kredytowych” sp. z o.o. | – | – |
| Purchase price | 2 | 2 |
| Change in the share in net assets | 4 | 4 |
| Impairment allowances | (6) | (6) |
| Total | 88 | 88 |
| CHANGE IN INVESTMENTS IN JOINT VENTURES | 2019 | 2018 |
|---|---|---|
| Investments in joint ventures as at the beginning of the period | 256 | 244 |
| Reclassification of interests in subsidiaries to joint ventures | 43 | – |
| Share in profits/ (losses) | 26 | 34 |
| Dividend | (36) | (22) |
| Investments in joint ventures as at the end of the period | 289 | 256 |
| CHANGE IN INVESTMENTS IN ASSOCIATES | 2019 | 2018 |
|---|---|---|
| Investments in associates as at the beginning of the period | 88 | 149 |
| Share in profits/ (losses) | 5 | 3 |
| Net impairment allowance | (5) | (32) |
| Share in the change of other equity components | – | (13) |
| Reclassification of shares from associates to financial assets | – | (19) |
| Investments in associates as at the end of the period | 88 | 88 |
As at 31 December 2019, and as at 31 December 2018, the parent entity did not have any share in contingent liabilities of the associates acquired together with another investor.
| IMPAIRMENT ALLOWANCES – RECONCILIATION OF MOVEMENTS | 2019 | 2018 |
|---|---|---|
| As at the beginning of the period | 178 | 146 |
| Recognized during the period | 5 | 32 |
| As at the end of the period | 183 | 178 |