Annual
report 2020
Annual
report 2020
As at 31 December 2020 and 2019, the amount of expenditures recognised in the carrying amount of items of property, plant and equipment in the course of their construction amounted to PLN 1,393 million and PLN 1,316 million, respectively. Movements in the net book value of property, plant and equipment for the 12 months ended 31 December 2020 were as follows: Movements in the net book value of property, plant and equipment for the 12 months ended 31 December 2019 were as follows: Potential contribution of network assets to jointly controlled vehicle In 2020, Orange Polska initiated a review of options for potential partnership into further development of fibre-to-the-home (‘FTTH’) network through a jointly controlled vehicle (‘FiberCo’). These options assume contribution by Orange Polska of certain existing fibre infrastructure with about 0.7 million of households connectable. Based on the analysis conducted by the Management Board and taking into account the process of preparation of assets to be sold, the assets planned to be contributed to FiberCo are not assets held for sale as defined in IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”. The assets are not ready to be sold at their present condition. Significant noncustomary organizational and operational changes (such as preparation of IT systems and other processes) still have to be made in 2021 to prepare these assets for sale. The sale of assets, if any, will be preceded by negotiations with investors and the outcome of negotiations cannot be reasonably assessed and significant changes to the sale plan might be needed in 2021. Furthermore, the Management Board and the Supervisory Board have not been yet presented with a concrete proposal and they have formed no judgement yet on whether they would approve such a proposal. In 2020, OPL incurred costs to prepare FiberCo for potential disposal, mainly legal and advisory costs in the amount of PLN 5 million, which are presented within external purchases in the consolidated income statement. These costs are excluded from the calculation of EBITDAaL as these costs are directly attributable to the planned disposal of FiberCo. Previous topic Next topic
(in PLN millions)
At 31 December 2020
Cost
Accumulated
depreciationAccumulated
impairmentNet
Land and buildings
2,311
(1,772)
(14)
525
Network
40,204
(31,012)
(80)
9,112
Terminals
1,986
(1,64)
–
346
Other IT equipment
1,272
(1,039)
–
233
Other
294
(207)
(2)
85
Total property, plant and equipment
46,067
(35,67)
(96)
10,301
(in PLN millions)
At 31 December 2019
Cost
Accumulated
depreciationAccumulated
impairmentNet
Land and buildings
2,349
(1,745)
(17)
587
Network
39,583
(30,414)
(58)
9,111
Terminals
1,936
(1,542)
–
394
Other IT equipment
1,254
(1,026)
–
228
Other
286
(202)
(2)
82
Total property, plant and equipment
45,408
(34,929)
(77)
10,402
(in PLN millions)
Land and buildings
Network
Terminals
Other IT
equipmentOther
Total property,
plant
andvequipment
Opening balance net of accumulated amortisation and impairment
587
9,111
394
228
82
10,402
Acquisitions of property, plant and equipment
35
1,256
112
64
29
1,496
Disposals and liquidations
(12)
(1)
–
–
(1)
(14)
Depreciation
(75)
(1,34)
(160)
(62)
(21)
(1,658)
Impairment, net
2
(27)
–
–
–
(25)
Dismantling costs, reclassifications and other, net
(12)
113
–
3
(4)
100
Closing balance
525
9,112
346
233
85
10,301
(in PLN millions)
Land and buildings
Network
Terminals
Other IT equipment
Other
Total property,
plant
and equipment
Opening balance net of accumulated amortisation and impairment
676
8,916
414
213
71
10,29
Acquisitions of property, plant and equipment
46
1,425
144
63
38
1,716
Disposals and liquidations
(48)
(1)
–
–
–
(49)
Depreciation
(92)
(1,255)
(163)
(65)
(23)
(1,598)
Impairment, net
5
(58)
–
–
–
(53)
Dismantling costs, reclassifications and other, net
–
84
(1)
17
(4)
96
Closing balance
587
9,111
394
228
82
10,402
11. Other intangible assets
13. Leases