Financial results of other segments

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Companies in the remaining segments are very diversified in their operations. They include companies supporting the core business and others of an equity investment nature, as well as companies playing an important role in fulfilling the policy of corporate social responsibility. The segment in addition includes closed-end non-public investment funds and their portfolio companies (including those forming the Polska Grupa Uzdrowisk).

Financial results of other segments (prior to consolidation adjustments)

  2021 2020 Change
(%)
4Q’21 3Q’21 2Q’21 1Q’21
Sales revenue 10,329 7,881 +31.1 2,839 2,506 2,612 2,372
including from external clients 2,468 1,926 +28.1 686 589 633 560
Profit/loss on sales (39) (96) (59.4) (76) 18 28 (9)
PROFIT/LOSS FOR THE PERIOD (140) (37) ×3.8 (217) 12 52 13
Depreciation/amortisation recognised in profit or loss (258) (241) +7.1 (67) (65) (64) (62)
Adjusted EBITDA* 346 211 +64.0 118 83 93 52
*Adjusted EBITDA = profit/(loss) on sales + depreciation/amortisation (recognised in profit or loss) + impairment loss (-reversal of impairment losses) on non-current assets (recognised in cost of sales, selling costs and administrative expenses) z tytułu utraty wartości aktywów trwałych ujęte w kosztach podstawowej działalności operacyjnej

In 2021, other segments recorded a loss on sales, prior to recognition of consolidation adjustments, in the amount of PLN 140 million, or a deterioration as compared to 2020 by PLN 103 million (the loss for 2020 amounted to PLN 37 million). The significant increase in the loss for the period was mainly due to impairment losses recognised on the assets of the companies Energetyka Sp. z o.o. and WPEC S.A. (impact on the result on sales in the amount of PLN 129 million) and impairment losses recognised on the shares of the company WPEC S.A. in the amount of PLN 106 million. At the same time impairment losses on shares of the company CENTROZŁOM WROCŁAW S.A. in the amount of PLN 20 million were reversed.

Best practice

KGHM takes the President of Poland’s Economic Prize in the category International Success

In November 2021 KGHM received the President of Poland’s Economic Prize in the category International Success – Marcin Chludziński, the copper giant’s President of the Management Board, received this distinction directly from Andrzej Duda during a gala in Rzeszów. The company was recognized among other things for advancing a positive image of Poland abroad. The International Success category applies to businesses or institutions that achieve sustainable growth, adhere to the principles of corporate social responsibility and act as a role model for other companies. The Employers’ Organization of Polish Copper nominated the copper company for this award.

I do not hesitate to state that this was a very good year for KGHM. We continue to be one of the top mining industry companies in the world. For the first time in history, half a billion PLN flowed to Poland directly from our international assets, mostly from the Sierra Gorda mine. We are tapping into new technologies and we are boldly facing transition-related challenges. This is the outcome of the entire staff’s hard work. We reign in the rankings while maintaining and strengthening the Group’s robust value. In this marathon we do not intend to surrender the leader’s jersey. New projects await us, such as small modular reactors. The President’s Prize confirms the significant positive impact we have on the Polish and global economy alike,” says Marcin Chludziński, President of the Management Board of KGHM Polska Miedź S.A.
The Employers’ Organization of Polish Copper nominated the copper company for this award. In the justification the organization emphasized that “by doing business on four continents KGHM is an excellent ambassador of the Polish economy. Knowledge and collaboration, sustainable development and CSR are the business pillars thanks to which the company has achieved international acclaim.”

The President of Poland’s Economic Prize is conferred by the head of the state once a year. It is a valuable and prestigious distinction for Polish businesses and scientific research institutes. Businesses that contribute to developing the national economy, adhere to the rules of corporate social responsibility, advance a positive image of Poland and act as a role model for other businesses can receive this prize. This prize is also awarded to research teams and units involved in implementing a product or technology-related innovation.

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