27.1   Cash flows from operating activities

Profit/loss on investment activities

Change in receivables

Change in inventories

Change in liabilities, excluding loans and borrowings

Change in other non-financial assets, prepayments and CO₂ emission rights

Change in provisions

27.2   Cash flows from investing activities

Acquisition of property, plant and equipment and intangible assets

The most significant capital expenditures were incurred by Conventional Generation segment (PLN 5,788 million, of which PLN 3,173 million is related to expenditures on the construction of power units no. 5 and 6 in Opole Power Plant and PLN 663 million is related to expenditures on reconstruction and refurbishment of power units in Bełchatów Power Plant, PLN 434 million related to expenditures on construction of gas and steam units in Gorzów Heat and Power Plant) and by Distribution segment (PLN 1,730 million related mainly to connection of new customers and modernization and development of electric power networks).

Acquisition of financial assets and increase in shareholding in the PGE Group companies

The amount of PLN 467 million concerns mainly investments in Polska Grupa Górnicza (PLN 444 million) described in note 33.2 of these consolidated financial statement, prepayments for BOŚ’s shares and acquisition of shares in an associate ElectroMobility.

Deposits with maturity over 3 months

In the current reporting period PGE S.A. concluded deposits with maturity over 3 months in the total amount of PLN 2,290 million. Additionally, companies belonging to Conventional Generation segment are obliged to hold cash of the Mine Liquidation Fund, which is collected and deposited as required by the Geological and Mining Law Act.

27.3   Cash flows from financing activities

Proceeds from loans

In 2016 the Group has used all of the credits available within the agreements signed in previous years by PGE S.A. with Bank Gospodarstwa Krajowego and Syndicate of Banks in the total amount of PLN 4,630 million.

Repayment of loans, borrowings, bonds and finance lease

This position includes mainly repayment of loans from environmental funds obtained by Conventional Generation segment in the total amount of approximately PLN 203 million.

Dividends paid

On June 28, 2016 the General Shareholders’ Meeting of PGE S.A. resolved to distribute PLN 467 million from the net profit of 2015 as a dividend (which comprises PLN 0.25 per share). The dividend was paid on October 14, 2016. The remaining amount of PLN 4 million is related to dividends paid to non-controlling shareholders.

Interests paid

This position includes interest on loans and borrowing of PLN 34 million, interest on bonds of PLN 79 million and interest on financial instruments (CCIRS and IRS) of PLN 83 million.