1.3 PGE Group’s composition

During the reporting period, PGE Group consisted of the following subsidiaries, consolidated directly and indirectly:

The table above includes the following changes in the structure of PGE Group companies subject to full consolidation which took place during the period ended December 31, 2019:

• On January 2, 2019, the demerger of PGE GiEK S.A. was entered in the National Court Register. The demerger was effected by transferring the following PGE GiEK S.A. branches to PGE EC S.A.:
• Elektrociepłownia Kielce,
• Elektrociepłownia Gorzów,
• Elektrociepłownia Rzeszów,
• Elektrociepłownia Lublin Wrotków,
• Elektrociepłownia Zgierz,
• Zespół Elektrociepłowni Bydgoszcz.

The transaction did not affect these consolidated financial statements.

• On April 17, 2019 PGE S.A. decided to withdraw from the process of acquisition of shares held by other shareholders of PGE EJ1 sp. z o.o. Thus, PGE S.A’s share in PGE EJ1 sp. z o.o. will remain at 70%.
• On April 24, 2019, PGE Nowa Energia sp. z o.o. acquired new shares in the increased share capital of 4Mobility S.A. The shares acquired account for 51.47% of the increased share capital. Following the accounting for the acquisition, the PGE Group recognised goodwill of PLN 7 million.
• On June 14, 2019, PGE EC S.A. acquired 49.96% of shares in PGE Gaz Toruń sp. z o.o. and became the sole shareholder of this company. Following the transaction, the Group’s equity decreased by PLN 275 million, including PLN 254 million attributable to non-controlling interests.
• On October 2, 2019, PGE EO S.A. established 7 companies: PGE Soleo 1 sp. z o.o. – PGE Soleo 7 sp. z o.o. All shares in the companies were acquired by PGE EO S.A. The companies were entered into the National Court Register in October and November 2019.
• On October 10, 2019 the Extraordinary General Meeting of Shareholders of PGE GiEK S.A. and PGE EC S.A. adopted resolutions on the demerger of PGE EC S.A. (the demerged company) through spin-off pursuant to Article 529 § 1(4) of the Commercial Companies Code by way of transfer to PGE GiEK S.A. (the acquiring company) a part of the assets of the demerged company in the form of an organized part of the enterprise covering the activity conducted by PGE EC S.A. Rybnik Branch related to electricity and heat generation, as well as electricity and heat distribution.
  The demerger was entered in the National Court Register on January 2, 2020.
• On October 18, 2019, PGE EC S.A. acquired all shares in Przedsiębiorstwo Energetyki Cieplnej sp. z o.o. with its registered office in Zgierz from PGE GiEK S.A.
• In November and December 2019, PGE EC S.A. acquired 10.94% of shares in PGE Ekoserwis sp. z o.o. from minority shareholders. Following the transaction, the Group’s equity decreased by PLN 8 million, including PLN 7 million attributable to non-controlling interests.
• In December 2019, PGE S.A. acquired all shares in PGE Ekoserwis sp. z o.o. held by PGE EC S.A. from PGE EC S.A.
• The establishment of the Eko-Inwestycje Fund is described in detail in note 33.4 to these consolidated financial statements.