PGE Polska Grupa Energetyczna S.A. Group („PGE Capital Group”, „PGE Group”, „Group”, „CG PGE”) comprises the parent company PGE Polska Grupa Energetyczna S.A., 51 consolidated subsidiaries, 2 associates and 1 jointly controlled entity. As described in note 33.2, in the current period the Group gained significant influence on Polska Grupa Górnicza sp. z o.o. and consolidates this company under the equity method. For additional information about subsidiaries included in the consolidated financial statements please refer to note 1.3.

These consolidated financial statements of the PGE Group comprise financial data for the period from January 1, 2016 to December 31, 2016 („financial statements”, „consolidated financial statements”) and include comparative data for the period from January 1, 2015 to December 31, 2015.

The financial statements of all affiliated companies were prepared for the same reporting period as the financial statements of the parent company, using consistent accounting principles.

Core operations of the PGE Group companies are as follows:

• production of electricity,
• distrubution of electricity,
• wholesale and retail sale of electricity, energy origin rights, CO₂ emission rights and gas,
• production and distribution of heat,
• rendering of other services related to the above mentioned activities.

Business activities are conducted under appropriate concessions granted to particular Group companies.

Going concern

These consolidated financial statements were prepared under the assumption that the Group companies will continue to operate as a going concern in the foreseeable future. As at the date of the approval of these consolidated financial statements, there is no evidence indicating that the significant Group companies will not be able to continue its business activities as a going concern.