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(available in the report drop-down bar). New approach allowed to navigate in the two additional
business dimensions of the PZU Group, i.e .:
- strategy (insurance, health, investments, finances);
- sustainable development (sales, employees, social responsibility, natural environment and ethics).
Human capital
Financial capital
Intellectual capital
Natural capital
Social capital
Policies
Health
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Investments
Insurance
BUSINESS
PRACTICES
PRACTICES
Capitals (IIRC)
Business
In the Chapter
GRIs
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GRIs
In the Chapter
List of GRIs
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GRIs
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GRIs
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GRIs
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GRIs
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Operating model
GRIs
- About the report
- Results
- Comment on the financial results for 2020
- Major factors contributing to the consolidated financial result
- PZU Group’s income
- PZU Group’s claims paid and technical provisions
- PZU Group’s acquisition and administrative expenses
- Drivers and atypical events affecting the results
- PZU Group’s asset and liability structure
- Contribution made by the market segments to the consolidated result
- Issuer’s financial results – PZU (PAS)
- Impact of the COVID-19 pandemic on the PZU Group’s results
- Business strategy (2017-2020)
- CSR strategy(2017-2020)
- Supplementary information and notes
- 1. Introduction
- 2. Composition of PZU Group
- 3. Shareholder structure
- 4. Composition of the Management Board, Supervisory Board and PZU Group Directors
- 5. Key accounting policies, key estimates and judgments
- 5.1 Impact of the COVID-19 pandemic on the estimates and assumptions
- 5.2 Changes in accounting policies and estimates, errors from previous years
- 5.3 Amendments to the applied IFRS
- 5.4 Explanation of differences between the 2019 annual consolidated financial statements and these consolidated financial statements
- 5.5 Consolidation principles
- 5.6 Measurement of transactions and balances denominated in foreign currencies and FX rates used
- 5.7 Purchase method
- 5.8 Classification of insurance contracts in accordance with IFRS 4
- 6. Segment reporting
- 7. Risk management
- 8. Equity management
- 9. Fair value
- 10. Gross written premium
- 11. Fee and commission income
- 12. Interest income calculated using the effective interest rate
- 13. Other net investment income
- 14. Result on derecognition of financial instruments and investments
- 15. Movement in allowances for expected credit losses and impairment losses on financial instruments
- 16. Net movement in fair value of assets and liabilities measured at fair value
- 17. Other operating income
- 18. Claims and movement in technical provisions
- 19. Fee and commission expense
- 20. Interest expenses
- 21. Acquisition costs
- 22. Administrative expenses
- 23. Employee expenses
- 24. Other operating expenses
- 25. Income tax
- 26. Earnings per share
- 27. Goodwill
- 28. Intangible assets
- 29. Other assets
- 30. Deferred acquisition cost
- 31. Property, plant and equipment
- 32. Investment property
- 33. Entities carried by the equity method
- 34. Loan receivables from clients
- 35. Financial derivatives
- 36. Investment financial assets
- 37. Receivables
- 38. Impairment of financial assets
- 39.Cash and cash equivalents
- 40. Equity attributable to equity holders of the parent
- 41. Technical provisions
- 42. Subordinated liabilities
- 43. Liabilities on the issue of own debt securities
- 44. Liabilities to banks
- 45. Liabilities to clients under deposits
- 46. Other liabilities
- 47. Provisions
- 48. Deferred income tax
- 49. Assets and liabilities held for sale
- 50. Lease
- 51. Assets securing receivables, liabilities and contingent liabilities
- 52. Contingent assets and liabilities
- 53. Offsetting financial assets and financial liabilities
- 54. Notes to the consolidated cash flow statement
- 55. Disputes
- 56. Transactions with related entities
- 57. Headcount
- 58. Other information
- Financial data (2019-2020)
- Financial data (2016-2020) Focus on: Results - check the highlights of the year!
- Comment on the financial results for 2020
- Market and business
- External environment
- Business model
- Structure of the Group
- Operating model
- Brand management
- Insurance
- Non-life insurance (PZU, LINK4 and TUW PZUW)
- Life insurance (PZU Życie)
- Insurance (international operations)
- Investments
- Investments (PZU TFI)
- Investments (PTE PZU)
- Health
- Health (health companies)
- Banking and strategic partnerships
- Banking (Bank Pekao, Alior Bank)
- Other operating areas
Focus on: Market and business - check the highlights of the year!
- Capitals (IIRC)
- Strategy and outlook 2021+
- Risk and ethics
- Objective of risk management
- Risk management system
- Risk appetite
- Risk management process
- PZU Group's risk profile
- ESG risks
- Risk vulnerability
- Reinsurance operations
- Capital management
- Ethical foundations of doing business
- Preventing corruption and conflicts of interest
- Whistleblowing System
- Transaction security
- Tax transparency
- Cooperation with suppliers Focus on: Risk and ethics - check the highlights of the year!
- Corporate governance
- Application of corporate governance rules
- System of control in the process of preparing financial statements
- Audit firm auditing the financial statements
- PZU's share capital and its shareholders
- Rules for amending the Company's Articles of Association
- Shareholder Meeting and shareholder rights
- Supervisory Board and Management Board
- Compensation paid to members of supervisory and management bodies
- Diversity policy Focus on: Corporate governance - check the highlights of the year!
- Shares and bonds
- Equity and bond market
- PZU's share price
- Banking sector on the Warsaw Stock Exchange
- PZU's investor relations
- Analysts' recommendations regarding PZU's shares
- PZU Group's Capital and Dividend Policy
- Debt financing of PZU, Bank Pekao and Alior Bank
- Rating
- Calendar of PZU's major corporate events in 2021 Focus on: Shares and bonds - check the highlights of the year!
31. Property, plant and equipment
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31.1 Accounting policy
Property, plant and equipment components are measured at purchase price or production cost less accumulated depreciation and impairment losses.
All property, plant and equipment components and their important components are depreciated, with the exception of land and property, plant and equipment in construction. Depreciation of an asset begins when it is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the intended manner.
Annual depreciation rates for material assets are presented below:
| Asset category | Rate |
| Cooperative ownership rights to apartments, cooperative rights to commercial premises | 2.5% |
| Buildings and structures | 1.5% - 10% |
| Machinery and technical equipment | 10% - 40% |
| Means of transport | 14% - 33% |
| IT equipment | 14.3% - 40% |
| Other non-current assets | 7% - 20% |
Assets held under a finance lease contract are depreciated over their useful life, provided that there is rational certainty that they would be purchased or ownership transferred. Otherwise, they are depreciated for a period no longer than the term of the lease.
The principles for recognizing impairment losses are the same as those applicable to intangible assets that are described in section 28.1.
As at 31 December 2020, analyzing impairment symptoms, the PZU Group took into account the potential impact of the COVID-19 pandemic on potential impairment losses on property, plant and equipment. As a result of the analyses, no need has been found to recognize impairment losses on property, plant and equipment.
31.2 Quantitative data
| Movement in property, plant and equipment (by type groups) in the year ended 31 December 2020 | Plant and machinery | Means of transport | Property, plant and equipment under construction | Real estate | Other property, plant and equipment | Total property, plant and equipment |
| Gross value at the beginning of the period | 1,227 | 267 | 257 | 3,982 | 599 | 6,332 |
| Changes: | 232 | 20 | (28) | 289 | 58 | 571 |
| - purchases and in-house production | 86 | 22 | 441 | 21 | 25 | 595 |
| - increase in right-of-use assets | - | 10 | - | 284 | 4 | 298 |
| - change in composition of the group | - | - | - | 1 | - | 1 |
| - sale and liquidation | (123) | (19) | (1) | (17) | (33) | (193) |
| - decrease in right-of-use assets (termination of agreements, sales) | - | (4) | - | (39) | - | (43) |
| - transfers to categories held for sale under IFRS 5 | - | - | - | - | - | - |
| - transfers to/from investment property | - | - | - | - | - | - |
| - transfers | 281 | 9 | (456) | 103 | 63 | - |
| - foreign exchange differences and other | (12) | 2 | (12) | (64) | (1) | (87) |
| Gross value at the end of the period | 1,459 | 287 | 229 | 4,271 | 657 | 6,903 |
| Accumulated depreciation at the beginning of the period | (677) | (88) | - | (968) | (260) | (1,993) |
| Changes: | (132) | (26) | - | (388) | (46) | (592) |
| - depreciation for the period | (201) | (20) | - | (126) | (57) | (404) |
| - amortization of right-of-use assets | - | (14) | - | (269) | (2) | (285) |
| - sale and liquidation | 69 | 8 | - | 7 | 16 | 100 |
| - transfers to categories held for sale under IFRS 5 | - | - | - | - | - | - |
| - foreign exchange differences and other | - | - | - | - | (3) | (3) |
| Accumulated amortization at the end of the period | (809) | (114) | - | (1,356) | (306) | (2,585) |
| Impairment charges at the beginning of the period | (9) | - | - | (93) | (8) | (110) |
| Changes charged to other operating expenses | (6) | (1) | - | (18) | (2) | (27) |
| Changes charged to other operating income | 2 | - | - | 1 | 1 | 4 |
| Other changes | - | - | - | 4 | (1) | 3 |
| Impairment losses at the end of the period | (13) | (1) | - | (106) | (10) | (130) |
| Net value of property, plant and equipment – at the end of the period | 637 | 172 | 229 | 2,809 | 341 | 4,188 |
| - including net value of right-of-use assets | - | 21 | - | 973 | 4 | 998 |
The value of right-of-use assets is presented in section 50.
| Movement in property, plant and equipment (by type groups) in the year ended 31 December 2019 (restated data) | Plant and machinery | Means of transport | Property, plant and equipment under construction | Real estate | Other property, plant and equipment | Total property, plant and equipment |
| Gross value at the beginning of the period | 1,109 | 226 | 198 | 2,780 | 485 | 4,798 |
| Posting of right-of-use assets as at the time of application of IFRS 16 | 76 | 3 | - | 1,168 | 3 | 1,250 |
| Changes: | 42 | 38 | 59 | 34 | 111 | 284 |
| - purchases and in-house production | 107 | 37 | 295 | 21 | 18 | 478 |
| - increase in right-of-use assets | - | 40 | - | 168 | - | 208 |
| - change in composition of the group | 4 | 1 | 1 | 33 | 63 | 102 |
| - sale and liquidation | (84) | (55) | - | (55) | (18) | (212) |
| - decrease in right-of-use assets (termination of agreements, sales) | (57) | - | - | (78) | - | (135) |
| - transfers to categories held for sale under IFRS 5 | (25) | (1) | - | (82) | (4) | (112) |
| - transfers to/from investment property | - | - | - | (3) | - | (3) |
| - transfers | 102 | 44 | (231) | 43 | 42 | - |
| - foreign exchange differences and other | (5) | (28) | (6) | (13) | 10 | (42) |
| Gross value at the end of the period | 1,227 | 267 | 257 | 3,982 | 599 | 6,332 |
| Accumulated depreciation at the beginning of the period | (576) | (88) | - | (617) | (233) | (1,514) |
| Changes: | (101) | - | - | (351) | (27) | (479) |
| - depreciation for the period | (172) | (23) | - | (139) | (45) | (379) |
| - amortization of right-of-use assets | (19) | (13) | - | (264) | (1) | (297) |
| - sale and liquidation | 66 | 36 | - | 21 | 16 | 139 |
| - transfers to categories held for sale under IFRS 5 | 24 | 1 | - | 30 | 3 | 58 |
| - foreign exchange differences and other | - | (1) | - | 1 | - | - |
| Accumulated amortization at the end of the period | (677) | (88) | - | (968) | (260) | (1,993) |
| Impairment charges at the beginning of the period | (4) | - | - | (85) | (11) | (100) |
| Changes charged to other operating expenses | (5) | - | - | (5) | (1) | (11) |
| Other changes | - | - | - | (3) | 4 | 1 |
| Impairment losses at the end of the period | (9) | - | - | (93) | (8) | (110) |
| Net value of property, plant and equipment – at the end of the period | 541 | 179 | 257 | 2,921 | 331 | 4,229 |
| - including net value of right-of-use assets | - | 30 | - | 994 | 2 | 1,026 |
“Transfers to and from investment property” items include amounts corresponding to those explained in section 32.
Investor Relations Team
e-mail: IR@pzu.pl
Magdalena Komaracka, IR Director, tel. +48 (22) 582 22 93
Piotr Wiśniewski, IR Manager, tel. +48 (22) 582 26 23
Aleksandra Jakima-Moskwa, tel. +48 (22) 582 26 17
Aleksandra Dachowska, tel. +48 (22) 582 43 92
Piotr Wąsiewicz, tel. +48 (22) 582 41 95