Powszechny Zaklad Ubezpieczen SA (PZU) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. I would like to give a warm welcome to all those present. My name is Pawel Górecki, and I am Vice President of the Supervisory Board of PZU. In accordance with our agenda, I'm hereby opening the meeting of the Ordinary General Meeting of Shareholders, convened on the 16th of June 2021, to begin at 11 at the seat of the company. Before I move on with the agenda, I would like to ask the representative of the company that handles the voting system to present the instructions how to vote.

My name is Piotr Kaminski, Unicomp-WZA. I will just briefly guide you through the devices that you collected when entering this room. On the first screen, you have two buttons, your data and documents. After you press your data on the tablet, you will see information displayed about the shareholders you represent. And when you press documents, you will see a list of documents published by the company related to our today's meeting. You can review the documents at any time. As regards the voting, after the Chairman of the meeting announces a vote, on your tablets, you will see the buttons: yes, no, abstention. And if you want to vote differently on each, you will also have this option. If you give a uniform voice on all shares, first, you press the button that shows your decision and the vote: yes, no, abstention. And after you press this button, on the next screen, you will see information, what decision you made. And then you will see the button confirm. If that is correct, if that is indeed how you want to vote, please press confirm. Then the vote will be sent to the system and counted. I hope this technique will not give you any problems. Should, however, there be any technical problems, we will be in the room throughout the meeting, and we are ready to help.

Thank you very much. Ladies and gentlemen, let's move on to the item concerning election of the Chairman of the General Meeting of the Shareholders. Please present candidates.

Olivia [indiscernible]. I would like to suggest Radoslaw Kwasnicki.

Does the candidate agree?

Yes.

Ladies and gentlemen, I would like to inform you that the draft resolution on selecting the Chairman of the Ordinary General Meeting of PZU shareholders has been attached to your materials and has been published on the website of the company. Therefore, I will not read it out unless I hear the request to do so from the room. Thank you very much. I would like to inform you that we will vote on personal matters. And it will be a secret ballot. Please insert the name of the candidate into the draft resolution. Certainly, that is being done right now. Now I would like to start the vote on the resolution on election of the Chairman. Please vote. [Voting]

Have you all cast your vote? Have you all exercised your voting right, those who wanted to exercise this right? Maybe I will wait a moment longer before I close the vote in a moment. [Voting]

I hereby close the vote. Let's see the results. And the secret ballot in favor of the resolution, 550,356,457 votes, against -- abstentions, 2. And the resolution has been adopted. Thank you very much.

Good morning, ladies and gentlemen. I would like to give a warm welcome to all shareholders, members of the Supervisory Board of the company, President and members of the Management Board, people who support us technically as well as Mr. Robert [indiscernible]. Before we proceed in accordance with the announced agenda, just a few technical issues. In a moment, I will announce the attendance. Now I'm signing the draft list of attendance. And this is the list. Today's general meeting has been convened formally by the Management Board of the company in accordance with the pertinent regulations on the company's website and current report 9/2021 of 20th of May this year. As regards share capital and the number of votes at present, represented or present, there are 470 shareholders authorized to cast 535,356,459 shares that authorize them to as exactly the same number of votes. Bearing in mind the above as well as Paragraph 15 of the company's Articles of Association, I confirm that this general meeting is capable of adopting any resolutions within the announced agenda. I would like to point out that the company ensures broadcast of the meeting of the general meeting. On the company's website, you can also find relevant information concerning personal data processing. Bearing in mind the customary practice in this company and in other listed companies, I will refer to draft resolutions in the version that have been announced and communicated in current reports without reading them out. However, if during the debate, you have any questions or doubts regarding the content of those resolutions, please raise them. Then I will read out the draft resolution to make sure the doubt is dispelled. As a shareholder of the company, I asked for a secret ballot. And from now on, all resolutions will be voted on in secret ballot to make sure that this is not only formal but also material. Bearing in mind that we have a lot of free seats, those of you who would like to benefit more from the privilege of secret ballot, please consider changing your seat so that you feel comfortable that you can cast your vote secretly, vote formally and materially. I think that brings us to the end of technical points. And now we can move on to Item 4 on the agenda, a vote on resolution #2 on adopting the agenda of the Ordinary General Meeting of PZU SA. The resolution has been announced. It is available on your tablets. The vote is in progress. [Voting]

Have you wanted to exercise a right to vote but have not been able to? If that is not the case, I close the vote. 550,356,458 votes were cast for the resolution, 0 against, 1 abstention. Therefore, I declare that the resolution has been adopted. I move on to Item 5 of our agenda. Items 5 through 9 will be considered jointly in view of the natural interconnection. We are now in Item 5 of the agenda. Let me remind you that this is considering of the financial statements of PZU for the financial year ended on the 31st December and following that result from the agenda. Yes, I can see a raised hand. Please introduce yourself. Please tell us whether you are a shareholder or you represent a shareholder and specify whether it's a formal motion or a substantive matter.

Yes. Jakub Gogolewski, individual shareholder. I understand there will be no presentation from the Management Board. And now we are going to talk about substantive matters. I have a substantive question.

All materials have been announced in accordance with a relevant resolution. So if you have a substantive question, please ask it.

Climate changes. I'm a shareholder, and I come to those general meetings. I have been coming to for the last 4 years. And my question is about preparation of the company for the realities of contemporary world in the context of climate changes and their implications. Yesterday, General Investment Management, one of major asset management funds from the U.K., announced sale of shares of American Insurance Group, one of major insurers in the U.S., and gave two reasons for this sale. One is that the company does not have a policy that would exclude insurance for energy coal.

Please formulate your question.

I'm just giving you a background. And the second reason was that they do not report insurable emissions, both things that are relevant to PZU. So indeed, financial institutions are taking steps that can affect further business of the company. To completely eliminate coal energy in OECD countries, UN General Secretary calls companies to do so. We should not exceed 0.5 degree increase in average temperatures roughly, which is appealed to the companies to align insurance principles with climate goals so that insurers should stop ensuring not on the coal extraction but also mining of other fossil fuels. As regards the recent months in the context of the changes that have been happening recently, it should be said that International Energy Agency has shown a scenario the calls on companies to discontinue investments.

I would like to ask you again to formulate your question, if you have a question.

We all know that Turów discontinuation on the 21st of May shows how quickly are changes being made in the energy and financial sectors. So my question is, are these related to the changing reinsurance policy in Europe and worldwide and related to the fact that in March of this year, PZU adopted a policy? And questions pertain to last year. What specific steps were taken by the Management Board of PZU to reduce greenhouse emissions or to support the greenhouse emissions and reductions in 2021? The second question, is the total value of premiums from corporate customers lower than the corresponding value in 2019. And if so, by what percentage? Third question, what percentage of investment portfolio of PZU Group at the end of December accounted for investments in coal mining companies? That is one which obtained more than 20% of the revenues from coal extraction. These are the criteria adopted by numerous insurance companies around the world. Is the percentage of the investment portfolio of the PZU Group at the end of 2020 in such companies was lower than the corresponding share at the end of 2019? And if so, by what percentage was it lower? What was the ratio of written premium gross to the revenues from coal mining companies compared with a non-life obtained by PZU in 2021? And what was the value of such premiums in absolute terms? Five, what tools were used in 2020 by the PZU Management Board to manage risk related to litigation linked to climate impact? Do you think that the Management Board thinks that there will be a growing risk of climate litigation? What was the premium from the companies that obtained more than 30% of natural gas LNG or companies that generated more than 30% of energy generation in relation to non-life premium obtained by the group in 2020? And what was the value of the premium paid by those oil-extracting -- gas-extracting companies? And the next question is about the companies which obtained more than 30% of their revenues from processing, extracting or sale of oil in relation to non-life premiums obtained by the group in 2020 as well as absolute value of the premium obtained from companies defined in this manner? Question number eight, how does the Management Board assess the changing business environment, especially with regard to largest reinsurance companies that PZU worked with in the past in the context of mining and energy sector and the impact of such cooperation on further provision of services by PZU to those companies? I have three more questions. To what extent the decision of the largest reinsurance companies affected PZU's decision on financing of mining companies and cost of such financing? Does PZU forecast any increase of such costs in 2021 and the following years? Question number ten, does the Management Board of the company analyze in 2020 the benefits of terminating insurance for certain segments, especially high emissions energy sector versus losses from non-obtaining insurance contracts? What conclusions do the shareholders draw from this decision? And the eleventh, last question, this judgment of the European Court of Justice of 21st of May obliges the Polish government to discontinue mining in total. There is the high risk of underestimation of risks resulting from this decision. What steps does PZU take in this regard? And what does PZU do when companies' services discontinue to apply judgment of the European Court of Justice?

The questions in accordance with the Commercial Companies Code was sent to the Management Board before the announced meeting. So the management will have the time to prepare the answers. Thank very much. Bearing in mind my obligations, I would like to inform you and the other shareholders that the subject of the questions and discussions of last year in documents that were submitted for approval. In particular, there are no grounds to provide answers to questions about evaluations, how the Management Board evaluates facts or events. Also the Management Board is not obliged to provide any answers about fact or situation developments that occurred after the 31st December. Do you have any other points that you would like to raise at this time? Please introduce yourself. The gentleman on the left was the first. And please say whom you represent.

My name is [ Patrick Kovalchuk ], I represent [ Patrick Kovalchuk ], individual investor. Mr. Jakub Gogolewski for 4 years has been trying to appeal to the Management Board and highlight certain points of high importance, especially for the young generation. According to the report, we have 9 years to stop climate disaster. 4 years have already been irretrievably lost. My question is how long should we still wait before PZU stops insuring lethal infrastructure? That is my life and the life of my child that I would like to have. The second point. Right now, PZU has record results. It also has incredibly intelligent and creative people who work in this building. Why all this potential is used to ensure, among other things, something that will destroy our future? The world heated by 3 degrees Celsius since the Industrial Revolution age. Will it be impossible to ensure the frequency of droughts, floodings, hurricanes will destroy the insurance market? Please explain to the shareholders why the PZU Group is aiming at destruction of the market in which it operates?

Thank you very much. I will refer to my previous statement. I do not admit those questions. Any other points that you would like to raise, if any? Okay. Items 5 through 9 -- if I do not see someone, please intervene. Yes, we have another person on the...

Marta [indiscernible]. I represent myself, that is Marta [indiscernible]. And I would like to say that it is very irresponsible to shy away from questions that concern the future of all people in the situation in which we are now. And I am extremely disappointed with the answer or, to be more specific, the lack of the answer to the questions asked. I would like to say that PZU Group has the potential to influence Poland's policy with regard to coal. Poland as a member of the European Union has a say and the global policy of getting away from coal. It is about the future of human civilization. Shying away from such questions, fobbing them off, well, it's hard to find an appropriate name for that, unpleasant, to put it mildly. You have the power to change the world, and you say, "No, we are interested in last year's profit." I do not know how this should be called, but this is horrible. Really, a Polish group PZU acts to its own detriment by ensuring coal. We will have to get out of coal in the upcoming 9 years. Now is the moment when the PZU Group has good results and that's an excellent moment to change something in its policy.

Would you like to formulate a question?

And you have to make use of this possibility. We cannot just move forward and then fall off a cliff. Congratulations on this attitude. That's frightening.

Do you have a question?

My question is how does PZU Group intend to change its policy in order to save the world? This is the reality now.

Thank you very much. So far, you also raised your hand. Please turn on your microphone.

[indiscernible], I am an individual shareholder. My questions are the following. What -- how big are the impact on the assets of open insurance funds comes from the competencies of people delegated to the Management Board of those funds? Why the reports do not include data on the loss of value on individual assets?

What do you mean by saying report, annual report?

The annual report. Okay. The next point, what was the decrease in the value of assets from companies in bankruptcy, where PZU had more than 5% exposure in share capital in last year? So three questions altogether. There is one more. That's for a discussion with a purchase of assets in the financial market, couldn't be compared in a literal way to buying a secondhand car with a certificate that it had no accident. But in fact, it is put together from two vehicles. So I'm talking about the transactions that PZU made in the market in previous years. Are you taking any steps related to compensations? Because if I bought a company that shows untrue data, I would seek compensation just as in the case of a vehicle.

The fourth question as evaluation will not be answered. I close the discussion on item 5 of the agenda. Thank you very much for the questions you asked. I give the floor to the Management Board of the company.

Thank you very much. With regard to a series of questions concerning climate, ladies and gentlemen, PZU Group and its activities takes into account not only financial results but above all achieving those results in a sustainable manner. This is our commitment to the shareholders. We provide value, which results not only from a financial result achieved here and now but also the manner in which those results are generated. Fulfilling this commitment is possible, thanks to doing our business in respect of the environment, social practices and in line with the best practices of corporate governance. Financial capital is not the only capital needed to do business and achieve good results. It is just as important as natural, intellectual, human or social capital. The PZU Group is aware that both its direct operations and the insurance products it offers as well as its banking and investment activities are the areas through which the companies can influence client behaviors and consequently also the impact of those behaviors on climate. This year, for the first time in the history of PZU, we prepared ESG strategy, which defines the attitude to management's expected results and plans for the future in a way that reflects environmental, social and managerial issues in a sustainable manner. As regards to the questions that concern climate, I would like to give the floor to Dorota Macieja, who supervises in the PZU Group at the implementation of the ESG strategy.

Thank you very much. And thank you very much for the questions. I hope they will allow us to show you how much PZU is changing and how much we have done in the last months. The first question about the specific steps that were taken by the Management Board to reduce emissions of greenhouse gases and the insured gas companies, reduction of greenhouse gases is mainly the task of those companies. PZU has no legal possibility to force its customers to do something that is not legally required. However, whenever the customer asks us for assistance in this regard, we will always help. So we decided to set an example and start with ourselves. Last year, for the very first time, we measured greenhouse gases generated as a result of the activity of our group. As one of the major sources of certain emissions is electrical energy, PZU decided to buy most of its energy from renewable sources. By 2024, we will be climate neutral, meaning that we will use fully green energy. We'll also release other emissions. And where that is impossible, we will compensate those emissions. The first compensation has already taken place that was for emissions last year. We offset almost 12,000 CO2 emissions, thanks to cooperation with national forest agency. And we will renew about 10 hectares of forest destroyed by hurricanes in 2017. At the same time, we started work on reduction of CO2 in the value chain. We will help those who collaborate with us to become climate neutral by 2024. Partners, first, an insurance-class alliance [indiscernible] by 2015. These activities are consistent with the Polish plan of climate neutrality and European commitments. The second question, whether the total value of insurance premiums from corporate customers from high emissions industries has declined compared with 2019. Yes, last year, PZU Group recorded in high emissions industry a decrease in written premium by 29%. We are particularly happy that there was a greater premium from renewable energy sources. We understand that in order to stop climate change that it is necessary to move to low emissions economy. We want to be partnered to companies, enterprises that are undergoing energy transformation. That is why we are developing our products that will present climate changes and will contribute to reduction of the negative environmental impact, taking into account Polish economic specifics. We promote renewable energy sources, among others, through such products as [ PZU Wind ], [ PZU Sun ] for wind and photovoltaic installations. Question number three, what percentage of the investment portfolio of the PZU SA Group corresponded to investments in coal mining companies. Ladies and gentlemen, we report what is required by the applicable regulations. This is a marginal share in the investment portfolio of the group. And that is comparable in 2019 and 2020. At the same time, it is worth noting that the ESG strategy of the group for 2020 through 2024 assumes engagement in renewable energy sources projects. We have already signed the first contracts for wind farms in Grajewo and over PLN 100 million for a wind farm in Potegowo. Fourth question, what was, in 2020, the ratio of gross written premium from the companies that had more than 20% of the revenues from sale of coal to the gross written premium of non-life insurance? All these details will be announced only when applicable regulations are in place and allow us to do so. In the ESG strategy, the group has committed to support its clients responsibly and in a sustainable manner on the way to green energy. We'll be the partner in green transformation. It is our aim to make sure that more than half of the largest insurance companies are analyzed in terms of ESG factors. We'll encourage our key customers to develop a plan of reaching climate neutrality and reducing carbon footprint. Fifth question, that was about litigation. In 2020, we did not identify any materialization of such risks. We will not give you any forecast. We have an excellent risk management office, which considers various scenarios. And now questions that were very similar, question number six was about the ratio of gross written premium from companies that gained their profits from sale of natural gas. And the seventh question was about the same in the case of oil. In view of legal and formal constraints, we'll only be able to disclose such data when the regulations allow us to do so. Question number eight concerns the Management Board's assessment of the changing business environment and change of policies of large financial institutions, including in particular, the largest reinsurance companies around the world whose services were used by PZU in the past. The Management Board understands the changing business conditions and takes steps on an ongoing basis in order to adjust the company to the current market situation, the regulatory requirements. First of all, it consists in securing insurance needs of our clients who have been our long-standing partners. In this context, we are open to cooperation with new reinsurers who are ready to secure our risks. At present, all needs of PZU with regard to reinsurance of the aforementioned risks can be considered as guaranteed. Question number nine was about the extent to which the decisions of the largest reinsurance companies around the world influenced the access of companies to reinsurance services in Poland, especially with regard to mining, coal mining companies. Does PZU expect an increase in such costs? Management Board of PZU acts with due diligence in developing the best solutions aimed at securing reinsurance needs. In spite of a reduction of exposure of some reinsurance, the company does not identify the risk of limited access to reinsurance companies. At present, it is difficult to specify exactly to what extent the changing market environment will translate into increased cost of reinsurance. Cost of the reinsurance program in 2021 are comparable with the costs of 2020. Tenth question, as a Management Board -- did the Management Board of PZU Group analyze the benefits of discontinuing insurance for some sectors? The basis for the operations of PZU is to ensure insurance security for companies that operate in accordance with the legal regulations applicable in Poland. Work done on the ESG strategy included also analysis of our client portfolio. Clients from high emissions energy sector, apart from the traditional operations that relies on fossil fuels, also develop their activities in the area of energy from renewable sources. The process of transformation of Polish economy towards zero emissions will require involvement and investments from the entities that currently operating in the energy sector. So that the transformation takes place in an orderly manner, availability of financial product is necessary, including funding insurance for entities from this sector. And PZU Group sees a role for itself in supporting those customers in energy transformation. Of course, it should borne in mind that sustainable development is not only about the environment. It is also about the society. Social matters are very important for PZU today. The pandemic determines our situation. That is why we are taking steps to support health and safety of our employees and collaborators. In the future, hopefully, our future will be determined by such factors as aging of the society or technological revolution. The group will actively support Polish society on its way towards stable, sustainable development. And the last question was about judgment of the Court of Justice of the European Union. The role of PZU is not to comment on litigation on disputes considered by courts. If necessary, we will analyze such things in accordance with legal regulations. Now insurance secret applies.

As regard to the question about this very broadly understood area of investment activities, please send your questions in writing. After the meeting, we will give you the answers in writing. I would like to draw attention to the fact that the group is a capital group, which includes our associated entities. Sometimes, our exposure is 100%. Sometimes, it's less. These values change dynamically. And sometimes they change throughout the year. The person who asked the question mentioned this threshold of 5%, so answering this question in a complete manner without the previous preparation is -- might be misleading. And I wouldn't like to give you incomplete and misleading information. So please send me your questions in writing, and I will answer them in writing as well. Thank you very much. So the company will answer those questions in statutory term. As for the last question, it was just an example of the last judgment of the Court of Justice of the European Union. But my point was more general whether the company uses clauses in its contract. That clauses thus allow its exit from a cooperation with such companies are not fulfilling claims of the company if those companies do not apply judgments of such courts. And this question has been answered, the company cannot disclose contractual secrets. And the point that you have just raised concerns the content of contracts that were concluded by the company. So I cannot provide you an answer to this question.

Ladies and gentlemen, we had a series of questions and answers. Some questions will be answered by the company within the statutory term. Now I would like to move on to Item 10 of the agenda. Management Board's report on representative expenses on public relations and the public communication as well as advisory and consulting services for the last year, along with the Supervisory Board's opinion on this report, is published on the company's website at Investor Relations section. It is also available on the voting tablets that you have. Given the adopted agenda, I would like to announce vote on trust resolution number three on Management Board report on expenses on representation, legal services, marketing services, human relations, public relations and advisory services related to Management Board. The vote is open. All votes are secret ballots on request of the shareholder. And the devices for voting are active at the moment when I announce the vote on resolution of a certain number. In the room, we have representative of the financial institutions, which sometimes have various set of instructions. And they evolve differently on different set of shares. That is why we need some extra time on some points. [Voting]

Have you managed to exercise your right to vote? I close the vote then. And I will announce the results. In favor of the resolution, 503,302,513; against, 28; abstentions, 47,053,918 votes. Therefore, the resolution has been adopted. Now I move on to Item 11 of the agenda, vote on draft resolution #4 on approval of the financial statements of PZU for the year ended on 31st of December 2020. [Voting]

Have you been able to vote? If so, I close the vote. And let's see the results. In favor of the resolution, 548,490,613; 0 against; abstentions, 1,865,846. Therefore, the resolution has been adopted. That brings me to Item 12 of the agenda, secret ballot of draft resolution #5 on approval of the consolidated financial statements of the PZU SA Group for the year ended 31st of December 2020, prepared in accordance with International Financial Reporting Standards. [Voting]

Have you managed to cast your vote? Thank you very much. Let's see the results. In favor of the resolution, 548,490,613; 0 against; 1,865,846 votes abstentions. Therefore, the resolution has been adopted. That brings me to Item 13 of the agenda. And I announce a vote on draft resolution #6 on approval of the Management Board report on the activities of PZU Group and PZU SA for the financial year ended on 31st of December 2020 and the report on nonfinancial data of PZU and PZU Group for 2020. [Voting]

Has any of you wanted to exercise your right to vote and been unable to do so? Then I close the vote. And let's see the results. For the resolution, 548,490,613; against, 29 votes; abstentions, 1,865,817. Therefore, the resolution has been adopted.

Jakub Gogolewski. I would like to declare that I voted against the resolution. And I would like this to be stated for the record. I believe that last year, the Management Board did not take sufficient action to meet the challenges faced by the company.

Thank you very much. And the clerk, who is taking minutes of -- will take all details from you to keep that in the -- on the record. Now we move on to draft resolution #7 on distribution of net profit of PZU for the year ended on the 31st of December increased by the amount from reserve capital from net profit for the year ended on December 2019. [Voting]

Has any of you wanted to exercise your right to vote and been unable to do so? Then I close the meeting. And let's see the results. For the resolution, 549,998,370 votes; against, 358,088 votes; abstentions, 1. Therefore, the resolution has been adopted. That brings me to Item 15 of the agenda regarding the vote on discharging the Management Board from the fulfillment of the duties. We have restrictions resulting from Commercial Companies Code, namely these concern in individuals concerned by the draft resolutions. I will read out the name of the person who's discharging of the fulfillment of duties is subject to the vote. Draft resolution #8, concerning Aleksandra Agatowska, discharging her from correct fulfillment of her duties on the Management Board of PZU SA. [Voting]

Has any of you wanted to exercise your right to vote and been unable to do so? Then I close the vote. And I will read out the results now. For the resolution, 546,729,247 votes; against, 20,373 votes; abstentions, 3,614,839 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #9, concerning Ernest Bejda on fulfillment of his duties on the Management Board of PZU SA. [Voting]

Has any of you wanted to exercise your right to vote and been unable to do so? Then I close the vote. And let's see the results. For the resolution, 546,714,247 votes; against, 27,374 votes; abstentions, 3,614,838 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #10, concerning Mr. Adam Brzozowski, discharging of Adam Brzozowski from the fulfillment of the duties on the Management Board of PZU SA. [Voting]

Has any one of you wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 546,729,247 votes; against, 20,374 votes; abstentions, 3,614,838 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #11, concerning Mr. Marcin Eckert, discharging of Marcin Eckert from fulfillment of his duties on the Management Board of PZU SA. [Voting]

Has any one of you who wished to exercise the right to vote and been unable to do so? If not, then let's see the results. For the resolution, 546,729,247 votes; against, 20,373; abstentions, 3,614,838 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #12, on discharging Elzbieta Häuser-Schöneich. That is a secret ballot, please exercise your right to vote. [Voting]

Has any one of you who wished to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 546,729,247 votes; against the resolution, 12,374; abstentions, 3,614,838 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #13, on discharging Malgorzata Kot from the fulfillment of her obligations on the Management Board of PZU SA. [Voting]

Has any one of you who wished to vote and been unable to do so? I close the vote. Let's see the results. For the resolution, 546,729,247; against the resolution, 12,373; abstentions, 3,614,838 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #14, on discharging Beata Kozlowska-Chyla from the fulfillment of her obligations on the Management Board of PZU SA. [Voting]

Has any one of you wished to vote and been unable to do so? If not, I close the vote. Let's see the results. For the resolution, 546,729,247 votes; against the resolution, 12,401 votes; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. At this point, I announce a vote on draft resolution #15, on discharging Tomasz Kulik from the fulfillment of his obligations on the Management Board of the company. [Voting]

Has any one of you who wished to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 546,729,247 votes; against the resolution, 12,374 votes; abstentions, 3,614,838 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #16, on discharging Maciej Rapkiewicz from the fulfillment of his duties on the Management Board of PZU SA. [Voting]

Has any one of you wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 546,729,247 votes; against the resolution, 12,374 votes; abstentions, 3,614,838 votes. Therefore, the resolution has been adopted. At this point, I announce a vote on draft resolution #17, on discharging of Malgorzata Sadurska from the fulfillment of her duties on the Management Board of PZU SA. [Voting]

Has any one of you wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the result. For the resolution, 546,729,247 votes; against the resolution, 12,374 votes; abstentions, 3,614,838 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #18, on discharging Pawel Surówka from the fulfillment of his duties on the Management Board of PZU SA. [Voting]

Has any one of you wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 546,714,247; against the resolution, 27,374 votes; abstentions, 3,614,838 votes. Therefore, the resolution has been adopted. I announce vote on draft resolution #19, on discharging Krzysztof Szypula from the fulfillment of his duties on the Management Board of PZU SA. [Voting]

Has any one of you wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 546,729,247; against the resolution, 12,374; abstentions, 3,614,838. Therefore, the resolution has been adopted. Congratulations, Madam President, Members of the Management Board and Management Board members who served on the Management Board. Item 16 of our agenda, draft resolutions on discharging from the fulfillment of the duties of Supervisory Board members. Vote on draft resolution #20, on discharging Marcin Chludzinski, member of the Supervisory Board, discharging him from the fulfillment of his duties on the Supervisory Board of PZU SA. [Voting]

If -- should the number of shareholders change, should the number of shares represented here change, please inform me thereof immediately, I will announce this information officially and will proceed. Now I would like to ask you whether you wish to exercise your right to vote and been unable to do so? Then I close the vote on resolution 20.

I think it's a scandal that you hide behind formal issues. Please keep in mind, the good practices -- to use those good practices in public statements. Thank you very much for respecting those rules, especially in public.

[ 518,700,000 ]; 28,040,000 against the resolution; 3,614,810 votes, abstentions. Therefore, the resolution has been adopted. Do we have any modifications concerning as represented in the room? That was before the vote on draft resolution #21. I will give you updated details on those present here. Shareholders present in the room are 467 shareholders authorized to cast votes for 550,356,429. That is the number of shares and votes. I announce a vote on draft resolution #21, on discharging Pawel Górecki from the fulfillment of his duties on the Supervisory Board of PZU SA. [Voting]

Has any one of you wished to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 518,707,722 votes; against 28,040,897; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #22, on discharging Agata Górnicka from the fulfillment of her duties on the Supervisory Board of PZU SA. [Voting]

Has any one of you wished to exercise your right to vote and been unable to do so? Then I close the vote. And let's see the results. For the resolution, 518,700,722 votes; against the resolution, 28,040,897; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. I announce vote on draft resolution #23, on discharging Robert Jastrzebski from the fulfillment of his duties on the Supervisory Board of PZU SA. [Voting]

Has any one of you who wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 518,700,772 votes; against, 28,040,897 votes; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #24, on discharging Tomasz Kuczur from the fulfillment of his duties on the Supervisory Board of PZU SA. [Voting]

Has any one of you who wished to vote and been unable to do so? Then I close the votes. Let's see the results. For the resolution, 518,700,722 votes; against, 28,040,897 votes; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #25, on discharging Maciej Lopinski from the fulfillment of his obligations on the Supervisory Board of PZU SA. [Voting]

Has any one of you wished to exercise your vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 518,700,722 votes; against 28,040,897 votes; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. I announced a vote on draft resolution #26, on discharging Elzbieta Maczynska-Ziemacka from the fulfillment of her duties on the Supervisory Board of PZU SA. [Voting]

Has any one of you wished to exercise your right to vote and been unable to do so? I close the vote. Let's see the results. For the resolution, 518,700,722 votes; against 28,040,897 votes; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #27, on discharging Alojzy Nowak from the fulfillment of his duties on the Supervisory Board of PZU SA. [Voting]

Has any one of you wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 518,700,722 votes; against, 28,040,897 votes; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #28, on discharging Krzysztof Opolski from the fulfillment of his duties on the Supervisory Board of PZU SA. [Voting]

Has any one of you who wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 518,700,722 votes; against, 28,040,897 votes; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #29, on discharging Robert Snitko from the fulfillment of his duties on the Supervisory Board of PZU SA. [Voting]

Has any one of you who wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 518,700,722 votes; against the resolution, 28,040,897 votes; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #30, on discharging Józef Wierzbowski from the fulfillment of his duties on the Supervisory Board of PZU SA. [Voting]

Has any one of you who wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the results. For the vote, 518,700,722 votes; against the resolution, 28,040,897 votes; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. I announce a vote on draft resolution #31, on discharging Maciej Zaborowski from the fulfillment of his duties on the Supervisory Board of PZU SA. [Voting]

Has any one of you who wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 518,700,722 votes; against, 28,040,897 votes; abstentions, 3,614,810 votes. Therefore, the resolution has been adopted. I would like to congratulate all the members of the Supervisory Board, people who held those positions last financial year. Item 17 on the agenda. Report of the Management Board on the remuneration of members of the Management Board and Supervisory Board has been published on the company's website and is available on your devices. I announce a vote on draft resolution #32/2021, on the opinion of the report of the Supervisory Board on remuneration of members of the governing bodies of PZU SA for the years 2019/2020. [Voting]

Has any one of you who wished to exercise your right to vote and been unable to do so? Then I close the vote. Let's see the results. For the resolution, 416,228,393 votes; against, 132,585,366; abstentions, 1,542,670 votes. Therefore, the resolution has been adopted. That brings me to Item 18 of the agenda. The Management Board of the company in its current report #12 of 10th of June and then in its current report 13/2021 of the 15th June informed about amendments to this draft resolution originally published together with the announcement of convening of the general meeting. Therefore, I submit to the vote the draft resolution and the wording as proposed by the Management Board of the company and published in the current report #13/2021. There is a raised hand to have a 2-minute -- motion to have a 2-minute break, a technical break. Then I announce a 2-minute technical break. We will resume our debates at 12:22. [Break]

12:22, as announced, I resume the debates. We are in Item 18 of the agenda. And the subject of our vote is draft resolution #33. I announce a vote on this draft resolution. It concerns approval of the rules of committee functioning appropriateness of the Supervisory Board and Audit Committee and confirmation of the evaluations made by the Supervisory Board. [Voting]

Have you wished to exercise your right to vote and been unable to do so? So then if not, then let's see the results. For the resolution, 357,137,488 votes; 0, against; abstentions, 183,218,841 votes. Therefore, the resolution has been adopted. Item 19 of the agenda. On the 7th of June, Maciej Lopinski resigned from his function of the Chairman of the Supervisory Board of the company and from his membership on the Supervisory Board. The company informed of this in current report of the 7th of June. Currently, there are 10 members in the Supervisory Board of the company. Resolution of the General Meeting of 2019 on determining the number of members of the Supervisory Board, it follows that the number of said members was set at 11. On the 15th of June of this year, the company has received the proposal of a candidate of Pawel Karol Mucha to be the 11th member of the Supervisory Board. The candidate was proposed by the State Treasury. The relevant information about the candidate was published on the website of the company and in the materials for today's general meeting in the relevant section. And this is also available on your devices. The Supervisory Board evaluated the appropriateness of the candidate to become a Supervisory Board member. This assessment took place on the 15th of June. And following business, the Supervisory Board presented its opinion. The opinion was published on the 15th of June and the materials for this general meeting at the company's website. It was also announced in the current report 13/2021 of the 15th of June, along with the draft resolution for Item 18 of this meeting. So now we are in Item 19 of the meeting. If there are no other motions, I close the list of candidates, and I submit this draft resolution with minor correction. Now Paragraph 1 reads -- please listen, I exercise my right to make a correction as a shareholder of the company. Paragraph 1 of the resolution, giving a positive assessment to the individual properties of the candidate, Mr. Pawel Karol Mucha is appointed as member of the Supervisory Board of PZU SA. Paragraph 2 of the resolution becomes effective on the day of being approved. It's 12:27. We will have a technical break. We will start resume at 12:37. [Break]

Our debate of the General Shareholder Meeting. We are now in Item 19 of the agenda. Draft resolution has been read out concerning the appointment of Pawel Karol Mucha to the Supervisory Board of the company, modified as I read out. This is where we are in the agenda. I announce a secret ballot. Please exercise your right to vote. [Voting]

Has any one of you wished to vote and been unable to do so? I close the vote. And let's see the results. For the resolution, 310,813,826; votes against, 120,736,255; abstention, 118,806,348. Therefore, the resolution has been adopted. I would like to congratulate the newly appointed Supervisory Board member. In the next item of the agenda, I would like to extend my thanks for excellent preparation of the debate, for active participation in the meeting. My thanks to the Management Board, Supervisory Board and all those who participated in preparing this meeting. Thank you very much. All the best. [Statements in English on this transcript were spoken by an interpreter present on the live call.]