26.2 Cash flows from investing activities

Acquisition of property, plant and equipment and intangible assets

In 2023, the largest expenditure on the acquisition of property, plant and equipment as well as intangible assets was incurred by the following segments:

• Distribution – PLN 3,948 million,
• Conventional Power Generation – PLN 1,402 million,
• Heat Generation – PLN 1,374 million,
• Renewable Power Generation – PLN 1,249 million,
• Railway Power Engineering – PLN 937 million
• Other Activities – PLN 783 million

Opening and closing of deposits with maturity of over 3 months

The companies in the Conventional Power Generation segment are obligated to hold funds in the Mine Liquidation Fund, in accordance with the provisions of the Geological and Mining Law.

Acquisition of a fully consolidated entity, net of cash acquired

• Acquisition of the PKP Energetyka Capital Group
  As described in note 32.5 to these financial statements, on 3 April 2023, the transaction of PGE’s direct acquisition of 100% of shares in PKP Energetyka Holding sp. z o.o., and consequently the indirect acquisition of 100% of shares in PKP Energetyka S.A. and shares in other subsidiaries of PKP Energetyka Holding sp. z o.o. by PGE S.A. was completed. The final price paid by PGE S.A. to the seller amounted to PLN 1,873 million. Acquired loan liabilities amounted to PLN 1,546 million and acquired cash of the purchased companies amounted to PLN 387 million.

• Acquisition of LongWing Polska sp. z o.o.
  On 20 September 2023, PGE Energia Odnawialna S.A. acquired 100% of shares in LongWing Polska sp. z o.o. with a value of EUR 17.5 million from Solar Energy Resources S.A. R.L. and Ser WindPark Zalesie GmbH. In these financial statements, the transaction is tentatively shown as an asset acquisition. The combined value of the transaction amounted to PLN 338 million. The amount of PLN 82 million represented the remuneration for the shares, while the amount of PLN 256 million related to the subrogation of liabilities. Acquired cash of the purchased company amounted to PLN 4 million.

In the comparative period, PGE EO S.A. purchased:

• 100% of shares in Collfield Investments sp. z o.o., which holds 100% of shares in three special purpose vehicles (Future Energy sp. z o.o., Radzyn Clean Energy Poland sp. z o.o., Elwiatr Pruszyński sp. z o.o.) operating three wind farms with a total capacity of 84.2 MW. Expenditure on the acquisition of the company amounted to PLN 939 million, while acquired cash amounted to PLN 183 million.
• 100% of shares in the companies Mithra, which own 35 photovoltaic projects with a total capacity of 85 MW. Expenditure on the acquisition of the company amounted to PLN 41 million, while acquired cash amounted PLN 200,000.

Disposal of subsidiary

In the comparative period, the amount of PLN 111 million relates to the proceeds from the sale of the following companies: Elbest sp. z o.o., TFI Energia S.A. and Przedsiębiorstwo Usługowo-Handlowe TOREC sp. z o.o.

Interest received

Interest received on Autostrada Wielkopolska S.A. bonds in the amount of PLN 72 million.