WBJ #5 2011

City Hall is getting ready to sell one of the world’s largest heating networks

Petrolinvest’s stock rocketed last week, leading regulators to investigate

A new law will see more women on candidate lists, but will that change anything?

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VOLUME 17, NUMBER 5 • FEBRUARY 7-13, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

REAL ESTATE

Storm over Egypt

Lokale Immobilia

X

How will the turmoil in North Africa affect the Polish economy?

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• Business parks • Plac Unii contractor • ProLogis merger 15-18

Whetting appetites Agriculture Minister Marek Sawicki discusses Poland’s “modern traditionalism” and the task of marketing its food abroad 12

Tax advisory companies 20-21

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . . . .5 Listed Firms . . . . . . . . . . . . . . . . . . .6 North Africa & Poland . . . . . . . . .7-9 Business Environment . . . . . . . . .10 Opinion . . . . . . . . . . . . . . . . . . . . . .11 Interview . . . . . . . . . . . . . . . . . . . .12 Business Community . . . . . . . . . .13 Lokale Immobilia . . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Entertainment . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

SHUTTERSTOCK

In this issue

Empty smiles

Financial fusion

Ukraine’s president had a fine time in Warsaw last week, but little of substance was accomplished 3

Raiffeisen’s purchase of Polbank will give rise to Poland’s sixth-largest bank

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NEWS

www.wbj.pl

Journalists pulled from Egypt

FEBRUARY 7-13, 2011

Bogdan Klich

IN THE SPOTLIGHT

4.3% is how much the economy grew in Q4 of 2010, according to the Economy Ministry

Due to increasing instances of attacks on journalists, Polish public television network TVP has decided to withdraw all employees from Egypt. The Polish Foreign Ministry urged Polish media to avoid downtown Cairo until the situation in the region became calmer. According to Gazeta Wyborcza, journalists from TVN and Polsat, Radio Zet, Gazeta Wyborcza and Rzeczpospolita remained in Egypt last Friday.

Poland ranked a mere 22nd in an economic innovation ranking published by the European Union. Only Lithuania, Bulgaria, Latvia, Romania and Slovenia, which registered the fewest new patents in the EU, fared worse in terms of innovation. Poland invests little in research and development compared to some other member states, and its companies invest the least in the development of new products.

Nord Stream route talks Talks were underway last week between Polish authorities and representatives of the Nord Stream consortium.

The purpose of the talks is to end a conflict over the path of the German Northern European Gas Pipeline, which could potentially block the development of the Polish LNG terminal in ÂwinoujÊcie. Some argue that the blockage may be deliberate, as the LNG terminal could constitute competition for the Russian-German pipeline.

Monitoring for hooligans Poland’s Justice Ministry has announced a new bill which proposes that convicted hooligans should be electronically monitored. The bill is designed with an eye to the Euro 2012 soccer tournament. Offenders would be required to stay home, and their whereabouts during sporting events would be monitored electronically. ●

89% is how much Petrolinvest’s share price grew early last week after the firm announced it had possibly found oil reserves totaling 100 million barrels in the Szirak 1 oil field

z∏.4.84 is currently the average price for a liter of E95 gasoline in Poland

z∏.1 billion is how much Poles may end up spending to participate in John Paul II’s beatification on May 1

COURTESY OF GRZEGORZ ROGI¡SKI/CIR

Poland lags in innovation

Numbers in the News

Quote of the Week

Poland’s Defense Minister Bogdan Klich last Friday survived a no-confidence motion filed by the opposition Law and Justice party. He hung on to his job by a comfortable margin – 234 against 194 – as Civic Platform (PO) and Polish People’s Party (PSL) MPs jointly voted to dismiss the motion. Whether he retains the position until the autumn elections remains to be seen, though.

Mr Klich arguably owes his job to the PSL votes and there have apparently been differing opinions in that party as to whether it pays politically to support the minister. Only after PSL’s leaders enforced party discipline last Friday did it become clear that Mr Klich would hold on to his position.

Earlier last week, the Sejm saw a heated debate regarding the no-confidence motion. The opposition blamed Mr Klich for inadequate preparations before the president’s ill-fated flight to Russia on April 10 last year.

Opposition politicians also deemed him partly responsible for a number of military airplane crashes which have taken place in Poland since he took up his post. Moreover, they lambasted the minister for failing to modernize the Polish Army.

Defending himself, Mr Klich talked about the professionalization of the military in recent years and recent changes in the army’s command system. For his part, Prime Minister Donald Tusk argued that the minister had

made decisions which his predecessors had not dared to make. With regard to the Smolensk crash, Mr Tusk said that the time for potential dismissals would come after the publication of the Polish report on the matter.

Born in 1960 in Kraków, Mr Klich studied medicine at the Medical Academy in Kraków (today the Jagiellonian University Medical College) and philosophy and the history of art at Jagiellonian University. In the 1970 and 1980s, he was active in Poland’s democratic opposition.

In PO since 2001, Mr Klich was member of the Sejm from 2001-2004 and of the European Parliament from 2004-2007.

Adam Zdrodowski

“He won’t leave today, but it will be a pyrrhic victory like it was with [Infrastructure] Minister Grabarczyk. Maybe he’ll also get flowers, eliciting the laughter of all thinking people” Speaking before the no-confidence vote, Marek Siwiec, a Democratic Left Alliance MEP, foretold Defense Minister Klich’s future

Figures in focus Growth spurts Annual GDP growth in Poland, 2000-2011 8 7

* Estimated ** Finance Ministry forecast

6 5 4 3 2 1 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011** Source: Central Statistical Office, Finance Ministry

On WBJ.pl

Company index Advadis..............................19 Grupa Lotos ......................19 Pollena-Ewa ....................19 AMB

A man’s world no longer?

WBJ.pl sits down with Jan Filip Stani∏ko, an expert on political economy at the Sobieski Institute, to assess how much the recently introduced gender quotas could change Polish politics

HBI Polska ........................12 Polnord..............................17

Property Corporation ......16 Hochtief Polska ................15 PolRest..............................19 American Chamber HSBC ................................10 Polskie Górnictwo Naftowe i of Commerce ....................10 Inditex Group ....................17 Gazownictwo ....................19 Audytel ................................6 Intesa Sanpaolo ..................5 Powszechny Zak∏ad Automotive Components Ipopema Securities ............5 Ubezpieczeƒ......................19 Europe ..............................19 Itaka ....................................9 Banco Comercial Jones Lang LaSalle..........15 PPUH Prosper ..................12 Portugues ..........................5 KGHM..................................6 ProLogis............................16 Bank BPH ........................10 KMG Investments ............15 Rafamet ............................19

DATELINE

February/March FEBRUARY 15-18 FURNITURE FAIR Event:

18 Event:

MARCH 1 CEEQA GALA & AWARDS Event:

MEBLE POLSKA Furniture Fair.

Location: Poznan International Fair. meble.mtp.pl/en

TOURISM FAIR Mi´dzynarodowe Targi Turystyki, Rekreacji i Wypoczynku (International Tourism, Recreation and Leisure Fair) INTOUREX 2011.

Location: Expo Silesia. www.exposilesia.pl/intourex/pl

8th Annual CEEQA Gala. Annual industry awards for business performance & achievement in Central & Eastern European real estate in 2010. Preceded by Forum & Panel Debate GREEN DEBATE 2 Location: Warsaw Marriott Hotel. www.cee-insight.com

1-5

CEBIT 2011

Event:

CeBIT 2011.

Location: Hannover, Germany. /www.cebit.de/home

Bank Millennium ................5 Kulczyk Oil Ventures ........19 Raiffeisen Bank Belneftekhim ......................3 lima-Gerber ......................12 International ......................5 BNP Paribas ......................5 Lot ......................................3 Rainbow Tours ....................9 BRE Bank......................2, 19 Lotos ..................................6 Realkapital........................16 BZ WBK ..............................5 Markit................................10 Ronson ..............................15 CB Richard Ellis ..............17 Meat Plant Biernacki ......12 Rossmann ........................18 Ciech ................................19 Merlin..................................3 Citibank Handlowy..............7 Metro Warszawskie ............4 Segro ................................16 Cyfrowy Polsat ..................19 Mewa ................................19 Siemens ..............................4 Dialog ..................................6 Neinver..............................17 Sony ..................................23 DM BZWBK ........................6 Newag ................................4 SPEC ..................................5 DTZ Polska........................18 NFI Empik Dun & Bradstreet ........9, 12 Media & Fashion ................3 Echo Investment ..............16 Niza Travel ........................15 Euro Styl............................15 Petrolinvest ..............2, 6, 19 Eurobank ............................5 PGNiG ................................5 Exim Tours ..........................9 PKN Orlen ........................19

Storteboom Hamrol..........12 SuperDrob ........................12 Tauron Polska Energia ..6, 19 Triada ..................................9 TUI Polska ..........................9

Futurestep ........................17 PKO BP ............................18 TVN....................................19 Getin Bank ........................19 Polbank ..............................5 Warbud..............................15 Grajewo ............................19 Polimex-Mostostal ......6, 19 Warsaw Stock Exchange ....3

NEWS

FEBRUARY 7-13, 2011

www.wbj.pl

Poland and Ukraine

EM&F’s Merlin deal barred

Almost a year after assuming office, Ukrainian President Viktor Yanukovych arrived in Warsaw last week for his first official visit to Poland. President Bronis∏aw Komorowski welcomed his Ukrainian counterpart, calling the visit “a confirmation of a mutual effort towards maintaining and developing the strategic partnership between the countries.”

Mr Yanukovych agreed.

“We can say with certainty that today Ukraine and Poland have entered a new stage; we can achieve the highest degree of closeness in history,” he said. “History connects us much more than it divides us.”

Talk of cooperation A face-to-face meeting followed the customary diplomatic pleasantries. The two leaders talked about Ukrainian integration with the EU and preparations for agreements on a free trade zone and a free-visa system. Mentioning

Poland’s upcoming takeover of the EU Presidency, Mr Yanukovych emphasized that integration with the EU is a priority for his country and acknowledged Poland’s “consistent and stable support” in this sphere.

Mr Komorowski, for his part, assured Mr Yanukovych of his backing for Ukraine’s ambitions.

Other topics included the Odessa-Brody-Gdaƒsk oil pipeline, the acceleration of the formation of a PolishUkrainian-Lithuanian military brigade, and preparations for the Euro 2012 soccer championship, with the presidents touring the construction site of Poland’s National Stadium.

Mr Yanukovych expressed his conviction that the countries would be successful in these large-scale international projects.

The presidents also signed a roadmap of Ukrainian-Polish Cooperation for 20112012. The bilateral document includes both short- and longreaching goals concerning European integration and humanitarian cooperation, as well as preparations for Euro 2012.

COURTESY OF THE WSE

Pony diplomacy Viktor Yanukovych’s first state visit to Poland included much good will, but little true substance

The Ukrainian president (left) opened last Friday’s trading session at the WSE Down to business Last Friday the presidents of Poland and Ukraine opened the trading session on the Warsaw Stock Exchange. They then took part in discussions at the 10th Poland-Ukraine Economic Summit.

Talks covered the growing number of Ukrainian firms on the WSE – five at present, with more “preparing themselves” – and the possibility of a special index for them opening before the end of the first half.

Other items on their agen-

da last Friday included a trip to Gdaƒsk and a visit to the Naftoport oil terminal.

President Yanukovych was also given an unusual present – a pair of Hucul ponies.

Examples of a regional breed, the ponies are ultimately intended as a gesture of good will from Polish breeders to their Ukrainian counterparts.

well, handshakes and ponies.

“President Yanukovych’s visit to Poland won’t bring a breakthrough in mutual relations,” wrote KommersantUkraine, as reported by TVN24. The Ukrainian daily noted that few concretes will come of it, and that the roadmap signed by the presidents includes no mention of strategic partnership or of specific dates for the extension of the Odessa-Brody pipeline to Natalia Kazik, Poland.

A lack of concretes Despite the positive atmosphere, there’s little sign that last week’s visit was more than,

Poland leads effort to raise millions for Belarusian opposition standard-bearer for international aid to Belarus, and there are signs that “Europe’s last dictator” is anxious about

his diminishing support levels and about growing support for the opposition.

Mr Sikorski warned that

AFP/EAST NEWS

The conference “Solidarity with Belarus” held in Warsaw on February 2 put the spotlight on Belarus’ democratic opposition and drew representatives from 36 countries.

The conference raised millions of euro in support for Belarusian democracy activists.

But the question remains as to whether that aid will be effective, given President Alexander Lukashenko’s relatively strong position.

The conference successfully got countries to put money where their mouths had been.

According to Polish Foreign Minister Rados∏aw Sikorski, international donors pledged a total of €87 million at the

conference. The European Commission alone offered to increase its aid to Belarus four-fold, from €4 million to €15.6 million.

Poland has been at the forefront in reacting to the post-election violence in Belarus, unilaterally imposing a travel ban on Belarusian officials and announcing measures to promote democratic ideals. The EU and the US followed suit last week by implementing asset-freezes and visa bans on Belarusian President Alexander Lukashenko and Belarusian officials.

The US also blocked transactions with two subsidiaries of Belarus’ largest state-owned petroleum and chemical conglomerate, Belneftekhim.

According to ¸ukasz Adamski from the Polish Institute of International Affairs, Poland is a credible

Though contested, Mr Lukashenko’s position is still strong

Consumer watchdog UOKiK last week ruled against NFI Empik Media & Fashion’s planned acquisition of Merlin, citing the threat of limiting competition in the online book and music markets. UOKiK stressed that decisions of this kind are very rare and only made in situations when concentration would certainly have a negative impact on the market. It added that it had reached its decision after the largest market research in its history. EM&F expressed surprise at the move, saying that its own analysis had ruled out any risks. The group’s lawyers are now analyzing UOKiK’s justification for the ruling and could soon appeal.

Budget signed into law

E Blake Berry

International

Last week’s donor’s conference raised €87 million, but the opposition has few options

3

Mr Lukashenko could soon face a popular uprising similar to those gripping North Africa, but that was perhaps premature.

“If the post-election demonstrations had numbered 100,000 or 200,000 people instead of 15,000 or 20,000, Lukashenko, like Mubarak in Egypt and Ben Ali in Tunisia, would have been forced to talk with protesters, possibly make some concessions, and it is not excluded that he would have had to step down,” said Mr Adamski.

But that wasn’t the case, and for the time being Mr Lukashenko’s position remains relatively strong, he added. Belarusian democracy activists and their supporters in Poland and in the West have few options left, other than biding their time.

Alice Trudelle

President Komorowski has signed legislation ratifying the 2011 budget.

The budget foresees Poland’s deficit reaching a maximum of z∏.40.2 billion. State spending should amount to z∏.313.4 billion, and the government expects to raise z∏.273.2 billion in taxes. The budget assumes an average inflation rate of 2.3% and economic growth of 3.5%.

Losses for Lot Polish national carrier Lot reported z∏.160 million in operational losses for 2010, a z∏.50 million improvement over 2009.

Rzeczpospolita reports that, according to CEO Micha∏ Piróg, the loss for this year is forecast at around z∏.54 million. The company hopes that its restructuring activities and new strategy will lift the airline out of the red in 2012. ●

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NEWS

www.wbj.pl

FEBRUARY 7-13, 2011

Politics

COURTESY OF KPRM

President Bronis∏aw Komorowski said that the law will “deepen democratic participation”

A new law will force parties to field more female candidates, but will it bring more women into the game?

President Bronis∏aw Komorowski has signed a law requiring at least 35 percent of party candidate lists to comprise women candidates. The new legislation

affects elections for parliament, the European Parliament, municipal councils and districts and provincial assemblies.

Upon signing the bill into law, Polish President Bronis∏aw Komorowski described it as “a mechanism to deepen democratic participation in the functioning of the state.”

The original proposal put

forward by the Polish Women’s Party demanded that the proportion be set at 50-50.

According to Barbara Grabowska, director of strategic litigation at the Helsinki Foundation for Human Rights, the effects will be visible in this October’s elections. “The last parliamentary election list counted around 25 percent of women candidates, and the current Sejm is composed of 20 percent of women,” she said.

Another feature of the new law is that at least one woman must feature among each list’s first three candidates. This new rule, according to Jan Filip Stani∏ko, an expert on political economy at the Sobieski Institute, could be a game-changer in regional leadership contests, “Because usually these three places guarantee a place in the parliament.”

But he was less enthusiastic regarding the effect of the new law on national politics. “I am quite skeptical because at the national level, the world of party politics is really a man’s world, composed of closed, personal circles,” he commented.

Alice Trudelle

Log on to WBJ.pl for a longer interview with Mr Stani∏ko on the significance of the new law

COURTESY OF SIEMENS

Gender quotas introduced

The Warsaw Metro

Next stop: modernity The Warsaw Metro is spending over a billion z∏oty on new subway trains A consortium comprising Siemens and Newag has won a tender to deliver 35 trains for Metro Warszawskie, operator of the Warsaw Metro. The contract is worth z∏.1.69 billion.

The Polish-German consortium is scheduled to deliver the first of the six-car Inspiro trains in Q4 of 2012. The last train will be delivered a year later. The deal will be partly financed using EU funds.

“Today the Metro joins the group of transportation companies which, benefiting from multi-year contracts for the supply of services signed with the City, will increase and modernize its rolling stock,” Warsaw Mayor Hanna Gronkiewicz-Waltz said at the signing ceremony.

According to information from Newag, the first 10 trains will be produced in Vienna by Siemens, with the remainder made in Nowy Sàcz, Ma∏opolskie voivodship.

The contract is part of a larger plan to expand and modernize the Metro. Some of

the new trains will eventually serve the future east-west line, on which preliminary construction work began last autumn. But the first of the new trains will be deployed on the existing north-south line, increasing the frequency of departures.

“We plan for the first delivery – of 12 to a maximum of 15 vehicles – to serve the first line [of the Metro], which will allow us to offer passengers a train frequency of 120 seconds,” Jerzy Lejk, general director of Metro Warszawskie, said at the ceremony.

Katarzyna Piasecka

coming in february

2011

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INDUSTRY NEWS

FEBRUARY 7-13, 2011

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5

Banking

Bank Millennium, for one, smashed forecasts last week with its 2010 earnings report On the back of Poland’s strong economic performance last

year, the country’s banks are expected to show large profit increases in their fourth-quarter 2010 earnings reports.

Poland’s banking and financial regulator, the Financial Supervision Authority (KNF), expects banks to net a total of

Bouncing back The combined net financial results of Polish banks (in z∏. billions), 2005-2011* 15

13.6

12 9

14

13.7

10.7

10

9.1

8.7

6 3 0

2005

2006

2007

2008

2009

2010*

2011*

*Forecast Source: Financial Supervision Authority

z∏.10 billion in 2010 and z∏.14 billion this year. For full-year 2009, Poland’s banks earned a combined z∏.8.7 billion.

Bank Millennium, a unit of Portugal’s Banco Comercial Portugues, kicked off the latest earnings season in positive fashion last week by revealing it had made an above-forecast net profit of z∏.326 million for 2010. In Q4 alone the bank made z∏.112 million – well above the z∏.75 million average forecast made by a Rzeczpospolita poll of analysts.

By contrast, the lender booked a profit of just z∏.1.5 million in 2009, highlighting just how far its fortunes have swung.

“The bank presented lower provisions, which was a positive surprise,” said Tomasz Bursa, an analyst at Ipopema Securities.

“But the question is if it is sustainable,” he added, explaining that the bank’s CFO has said market sentiment cannot be expected to remain the same in 2011.

Poland’s economy, which expanded by 3.8 percent in 2010, according to preliminary forecasts, helped the bank boost its revenues.

“There was a big gain on financial activity,” said Mr Bursa. For one thing, the bank made z∏.275 million in Q4 from net interest income alone.

Similarly to other Polish banks, much of Millennium’s success has been down to its ability to book solid returns on risky foreign-currency denominated loans, and particularly those given in Swiss francs.

Despite seeing the value of their loans rise and fall dramatically, Millennium’s cus-

KASIA MARCINKIEWICZ/WBJ

Polish banks buoyed by economy

Millennium touted a z∏.326 million net profit for 2010 tomers have been consistent in paying back what they owe, say analysts.

Rumors that the KNF wanted to officially limit these profitable foreign-currency loans outright now seem to be a little premature, providing a further boost to the market.

“The probability that the KNF would change [loan regulations] in the short term is limited,” said Mr Bursa.

He added that despite rumors of new loan-regulation changes, altering banking law takes a long time. “It will not happen in 2011,” he said.

Gareth Price

Warsaw City Hall to announce tender for heating supplier SPEC The firm that supplies some 80 percent of Warsaw’s heat is set to be sold. Warsaw City Hall will announce a call for bids for Sto∏eczne Przedsi´biorstwo Energetyki Cieplnej (SPEC) within two

weeks, city officials told Warsaw Business Journal.

BZ WBK will lead a consortium that will advise on the transaction.

Several media outlets have reported that the city plans to

sell 85 percent of shares in SPEC, but Magdalena Jadziewicz, a spokesperson for Warsaw City Hall, was unable to confirm that figure.

According to the city’s budget for 2011, it hopes to

Banking M&A

Raiffeisen buys Polbank for €490 million Austrian bank Raiffeisen Bank International (RBI) has beat out the competition to purchase a 70 percent stake in Polbank, a unit of beleagured Greek lender EFG Eurobank Ergasias. The cost of the acquisition amounts to €490 million.

The sale is expected to be completed in Q4 of this year or Q1 of 2012.

“With its clear focus on retail banking, Polbank is an ideal complement to Raiffeisen Bank Polska. We are creating a broad basis to develop successfully in one of the most solid and most strongly growing economies in Central and Eastern Europe,” RBI CEO Herbert Stepic said on the occasion of the signing.

When the asset was first put up for sale, Polbank reportedly intended to sell at most half of its stake, keeping control for itself. Later this was raised to 51 percent and finally to 70 percent. Italy’s Intesa Sanpaolo and France’s BNP Paribas competed with Raiffeisen for the stake.

COURTESY OF WIKIMEDIA COMMONS

The merged entity will be Poland’s sixthlargest bank

Polbank has a network of around 350 outlets The Austrian bank’s Polish subsidiary – Raiffeisen Bank Polska – will be merged with Polbank. According to Raiffeisen, the resulting entity will be the sixth-largest bank in Poland in terms of assets (estimated at around z∏.48 billion), and fourth in the customer loan market. It will have a client base of over one million.

Polbank is mainly a retail bank, with a broad mortgage

portfolio and a network of around 350 outlets. It has reportedly been trying for a few months to build a corporate banking business, a sector in which Raiffeisen’s Polish unit is relatively strong. For its part, Raiffeisen, with 123 outlets, has been trying to build its retail business for years.

Both Raiffeisen and EFG Eurobank saw their stocks rise E Blake Berry on the news.

receive some z∏.750 million for the sale.

As for buyers, Slawomir Hinc, deputy CEO of Poland’s natural gas monopolist PGNiG, told the Polish Press Agency that his firm may be interested.

“We do not rule out interest in the privatization of SPEC,” Mr. Hinc was quoted as saying. “If the privatization process starts, we will analyze this firm.”

SPEC manages some 1,650

km of heating pipes, supplying around 19,000 buildings in Warsaw. That makes its heating network one of the largest in the world, according to the company’s website.

KP, AK

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LISTED FIRMS

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WSE’s top 2010 firms The most successful firms on the Warsaw Stock Exchange in 2010 were coal miner LW Bogdanka and television provider Cyfrowy Polsat, according to a poll of analysts commissioned

by Puls Biznesu. The company which runs the exchange, GPW, came in third and bank BOÂ was fourth. Refiner Lotos and copper miner KGHM shared fifth place.

Mobile internet growth Demand for wireless mobile internet will help drive the Polish telecommunications market, according to analysts at audit and advisory company Audytel. Investments by mobile operators in highspeed networks will also require media providers to offer content adapted to the requirements of mobile equipment.

Audytel estimates that in five years, over eight million people in Poland will be using mobile internet and that the telecoms industry will be worth z∏.53.16 billion. ●

FEBRUARY 7-13, 2011

Oil exploration

Copper & silver

Petrolinvest fuels speculation

KGHM to invest over z∏.10 billion this year

The firm’s stock saw a record jump, triggering controversy Shares of Petrolinvest, an oil and gas sector firm controlled

by Polish business mogul Ryszard Krauze, jumped by a whopping 89 percent during last Tuesday’s trade. This came after Bertrand Le Guern, the company’s president, announced that it might have found large reserves of oil and gas.

“We have every reason to state that we have struck very large reserves of oil and gas.

We are currently at a depth of 5,030 meters [100 meters away from the target depth]. We estimate the size of the reserves which we can exploit to be about 100 million barrels of oil,” Mr Le Guern said in Tuesday’s Puls Biznesu. The revelation concerned exploration in Kazakhstan.

At the current price of $104 dollars a barrel, that would mean reserves worth over $10 billion.

On this news, Petrolinvest’s share price shot up from Monday’s closing price of z∏.5.03 to z∏.9.50 at the end of Tuesday’s session. The trading turnover

for the firm’s shares was z∏.84 million as 11 million shares changed hands. The situation caught the attention of the Financial Supervisory Authority (KNF), which is investigating the possibility of shareprice manipulation.

“The fact is that the market reacted to an article. But investors should learn to read carefully, because it was not stated clearly in the article that there is oil, just that they are close to it,” KNF spokesperson ¸ukasz Dajnowicz told the press, adding that it would take a week or two to verify the information.

Meanwhile, earlier in the week analysts from DM BZ WBK brokers had predicted in a report that Petrolinvest, along with Ukrainian agriculture sector firm Kernel Holding and energy company Enea, are likely candidates to replace Cyfrowy Polsat and construction firm PolimexMostostal on the blue-chip WIG20 index in March.

At the end of Friday’s trading, Petrolinvest shares were worth z∏.7.20, up 39 percent on the week.

Remi Adekoya

Analysts say the metals miner could be looking to help the state out with its privatization plan State-controlled copper and silver producer KGHM has revealed that it wants to spend around z∏.9.05 billion on equity investments this year.

KGHM is also looking to spend a further z∏.1.89 billion on mines and other assets within Poland, the company wrote in a statement.

The metals behemoth was clear that it will look to acquire foreign mining assets with its equity capital as part of a strategy to achieve annual mine production of 700,000 metric tons of copper. But that would still leave plenty of cash spare, according to analysts.

“It is not easy to spend z∏.9 billion on copper alone,” said Pawe∏ Puchalski, an analyst at BZ WBK. “We could imagine a scenario where KGHM would support the Treasury’s privatization plan,” he added.

Other analysts were more specific, suggesting it would make sense for KGHM to purchase 10 percent in stateowned utility Tauron, for about z∏.1 billion, or shares in electricity producer Enea.

A representative from KGHM declined to comment on whether the company was looking to get involved in Poland’s asset-sale program.

To achieve its equity investment goal, the company wrote that it would need to secure

buyers for its stakes in telecoms operators Polkomtel and Dialog.

“The difference between the two companies is that huge profits can be made from Polkomtel, but this is not necessarily the case with Dialog,” Mr Puchalski said.

“It is not easy to spend z∏.9 billion on copper alone” KGHM has invested heavily in Dialog, and while the telecoms operator’s book value amounts to over z∏.800 million, it is likely the firm will receive bids below this amount.

“They have been trying to sell it for four or five years but have got nowhere,” Mr Puchalski explained.

The Polkomtel sale, by contrast, is reportedly almost

inked, and KGHM is expected to receive about z∏.4 billion for its 24.4 percent holding.

The metals miner also announced that it expects its 2011 net profit to nearly double y/y to around z∏.8.35 billion. If this comes to pass, KGHM will have made the highest net profit ever seen in Polish corporate history.

Rising metal prices, which helped the company’s stock price to increase by 60 percent last year, will continue to drive the company forward. KGHM itself predicts an average annual copper price of $8,200 per metric ton this year, which seems a little on the conservative side.

The average copper price for the last three months stood at $9,920.00 per metric ton and analysts expect it to continue rising as the global economy continues to pick up Gareth Price steam.

Driving growth The average monthly price of copper for the past seven months (US $ per metric ton)

10 9 8 7 6

August 2010

September October 2010r 2010r

November December 2010 2010

January 2011

Sources: The World Bank, London Metal Exchange

Legal News Contact: Miros∏aw Stefanik ms@pnplaw.pl

Withdrawing consent to process personal data On March 7, an amendment to the Act on Personal Data Protection will come into force. One of the changes refers to the definition of “the consent of a person to whom data relate” to the processing of their data. The definition has been made more precise by allowing the possibility to withdraw consent at any time. Until now, the matter of possible recalling (withdrawal) of the consent had been questionable.

Evaluation and depreciation of in-kind contributions in a partnership As of January 1, amended provisions of the Act on Corporate Income Tax have been in force, relating to the depreciation of property items contributed in-kind to

partnerships. Now the principle of continued evaluation and depreciation of property items is applied in evaluation and depreciation.

This means that if a contribution was previously recorded in a partner’s records of fixed and intangible assets, now the partnership has to include write-offs made by the partner in the books kept by the partnership. If the contribution was not depreciated in the partner’s own books, its value for depreciation purposes in the company is the value of expenses borne by the partner for purchasing or manufacturing the property item contribution.

The above provisions apply to income earned since January 1, 2011. For taxpayers whose financial year started before January 1, 2011, the provisions binding until December 31, 2010, apply. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

NORTH AFRICA & POLAND

FEBRUARY 7-13, 2011

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7

The protests in Egypt

Watching and waiting The protests which started in Egypt on January 25 are the largest and deadliest seen in the most populous Arab country in decades. After almost 30 years of rule by former Air Force Commander Hosni Mubarak, hundreds of thousands of Egyptians took to the streets to demand the president step down.

The demonstrations were started by a group called the April 6 Youth Movement and began with protesters marching in Cairo and other Egyptian cities, chanting anti-government slogans and demanding an end to Mr Mubarak’s rule. This just weeks after the Tunisian Jasmine Revolution began and the many Egyptian protesters carrying Tunisian flags was an indication of where they had received their inspiration.

The US reaction The international community (most importantly the US) reacted lukewarmly to the

protests at first, with Secretary of State Hillary Clinton saying the US was not looking “for any specific outcome.” But a week later President Barack Obama called on Mr Mubarak to “begin the transition now.”

In the meantime, Mr Mubarak announced that he would not run for another presidential term this September, but refused to leave office immediately.

This did not satisfy the protesters and as WBJ went to press, there were violent clashes going on between them and supporters of Mr Mubarak, whom many witnesses say were paid by the regime to provoke the anti-government protesters.

Don’t go to Egypt The Polish Foreign Ministry has warned Poles not to travel to Egypt now, although Foreign Minister Rados∏aw Sikorski admitted there were no legal grounds under which he could prohibit people from traveling to Egypt.

“I appeal to you once again: don’t do it [travel to Egypt], it is really dangerous there,” he stated. For the Poles who decided to stay in Egypt, Mr Sikorski advised them to keep to their hotel surround-

ings.

“There is a crisis team in the Foreign Ministry. We have raised the alert in the Consulate in Cairo, the consuls have traveled to the resorts, but despite that some of our countrymen have traveled to Egypt in the last few days. If something bad happens to someone, we will know who to blame,” Mr Sikorski said on Radio Trójka last Thursday.

Fallout for Polish presidency?

Asked if the calls for Mr Mubarak to leave now would be fruitful, Marcin Zabrowski of the Polish Institute of International Affairs (PISM) was skeptical.

“It will have some impact, but I think things have now reached a threshold and it is a matter of the survival for the regime. News of CNN and BBC journalists being beaten up in Egypt by pro-Mubarak forces shows an anti-Western sentiment starting within the regime,” said Mr Zaborowski.

As for how the events could affect things in Europe, including the Polish presidency of the EU later this year, Mr Zaborowski said it could have an effect on energy policy issues.

COURTESY OF MONA/WIKIMEDIA COMMONS

The violence in Egypt has the Foreign Ministry worried for travelers and others eyeing energy security issues

Protests in Egypt weren’t letting up as WBJ went to press “Oil prices are rising rapidly due to the crisis. Energy security has always been high up on the Polish agenda for the European presidency, I

think what is going on now will add even more urgency to the issues of a European energy policy,” he added.

As WBJ went to press,

approximately 400 were reported killed in the Egypt protests, with a further 3,000 injured.

Remi Adekoya

The economy

Will trouble in Egypt hit Poles’ pocketbooks?

The turmoil in Egypt could affect Poland, but analysts are keeping calm Days of massive protests and political uncertainty in Egypt last week effectively paralyzed the local economy and provoked somber predictions for the country and the region.

“Clearly the real economic pain at

this time is affecting the Egyptian population, whose economy is in turmoil, and not Polish consumers or Polish businesses,” commented World Bank senior economist Kaspar Richter.

Yet he and other experts agreed that the events rocking Egypt could reach

Poland in two ways.

In the short term, uncertainty could increase volatility on the Polish financial market, including perhaps the currency. In the medium term, a sustained increase in energy prices, and that of oil in particular, may trigger some increases for Polish consumers and companies as well.

“There are many investors holding Polish assets, especially Polish government bonds, so the risk of reduction of exposure of foreign investors in Poland is considerable in my view,” said Piotr Kalisz, chief economist at Citibank Handlowy in Warsaw.

Indeed, some sentiment of flight to safety in financial and commodity markets was seen last week. And investors on

the Polish market could also decide to cash in some of the gains made in recent weeks and months, agreed Mr Richter.

But Tomasz Jerzyk, a technical analyst with DM BZ WBK, argued that the unrest in Egypt had had a limited impact on Polish stocks. “Of course Poland, just like Egypt, is considered an emerging market economy, but it’s more likely that other countries in Middle East region could be more affected,” he commented.

A fluid situation The price of crude oil rose steadily last week in response to the uncertainty in Egypt.

The Middle-Eastern region represents about two-thirds of global oil reserves and about half of global gas reserves, and the oil market is considered the key link between instability in the Middle East and the global economy.

Mr Kalisz noted that an increase in energy prices would add to already existing commodity price pressure.

Oil Trouble OPEC basket price*, US dollars, selected dates since the beginning of unrest in Egypt

100 99 98 97 96 95 94 93 92 91 90

* The OPEC Basket price is a weighted average of prices for petroleum blends produced by OPEC countries. It is used as a benchmark for crude-oil prices.

January 25 January 26 January 27 January 28 January 31 February 1 February 2 Source: OPEC

“In the past month we have noticed a substantial increase in food, but also in fuel prices, and the current situation only makes the whole price pressure stronger,” he commented.

Citi Handlowy’s current scenario, which does not yet include an impact of higher oil prices, sees inflation between 3.5 and four percent in the first half of the year.

However, Poland’s longterm gas contract with Russia offers the country protection from any immediate volatility in energy prices. According to

the World Bank’s Kaspar Richter, a couple of months would be necessary before any price increase on the global market would actually affect domestic prices in Poland.

All of the experts contacted for this article described the situation in Egypt and the region as extremely fluid and were reticent to make any predictions. However, the general mood was that Poles need not be concerned about their wallets taking a hit, at least not yet.

Alice Trudelle

8

NORTH AFRICA & POLAND

www.wbj.pl

FEBRUARY 7-13, 2011

Currency

Timeline

The turmoil’s impact on the z∏oty Significant short-term weakening may be in the cards When one emerging market sees instability, markets and currencies in others typically suffer. That was the case over the past couple of weeks, as turmoil in North Africa spread, sending jitters throughout emerging markets as investors lost their appetite for risk.

The z∏oty saw a significant amount of volatility, especially around January 26 and February 2, but as WBJ went to press, the currency was enjoying a relatively steady recovery. Analysts by and large held to predictions that in the 12month perspective, the z∏oty would continue to strengthen,

backed by global economic recovery, a strong Polish economy and interest-rate hikes from the National Bank of Poland’s Monetary Policy Council (RPP).

Still, analysts said that in the near-term it would be very difficult to to predict what was in store for the z∏oty.

“Obviously the risk aversion channel is very important for the z∏oty and, yes, I think some stronger correction on the global markets is in the cards – actually it’s overdue – with a negative impact on the z∏oty,” said Przemys∏aw Kwiecieƒ, chief economist at X-Trade Brokers.

“The question is what will be the trigger? African turmoil

could have been one, but markets are quickly returning to normalcy so I think we’ll need to wait for something else,” he added.

But if things got worse in North Africa, could the RPP raise rates more sharply than expected to shore things up?

“Frankly speaking that wouldn’t be smart,” said Mr Kwiecieƒ. “Reacting with long-term tools to short-term market developments rarely works. … If we see some stronger setback on the global markets and the zloty declines, rate hikes will not help.”

Both the government and the NBP have intervened in the past year to keep the z∏oty in a range that would keep the economy moving along health-

ily. Is there the potential of that happening if the z∏oty weakens enough?

“The government’s FX transactions may have some short-term effect under certain circumstances but it’s not a game-changer either,” said Mr Kwiecieƒ.

“Basically, we do expect a relatively good year for the z∏oty as a combination of still relatively benign global factors and favorable domestic factors. But if a correction on the global markets occurs – be it due to the Egypt, Portugal or Chinese inflation, you name it – the z∏oty is bound to temporarily decline as well and local authorities cannot do much about it.”

Andrew Kureth

Events which have rocked North Africa and the Middle East in recent weeks DECEMBER 17, 2010 Tunisia:

JANUARY 2011 Tunisia:

Average NBP exchange rates for USD/PLN (in z∏oty)

4.00

3.0

Tunisia:

JANUARY 6 Algeria:

Protests due to unemployment and a jump in food prices. The Algerian government pledges to cut taxes and import duties on staple foods.

JANUARY 14 Tunisia:

Yemen:

President Zine El Abidine Ben Ali flees the country; PM Mohammed Ghannouchi assumes the role of interim president.

Protestors demand a change of government.

JANUARY 16

Tunisia:

Protests in Cairo against President Hosni Mubarak.

Protests against the new government announced by Mohammed Ghannouchi.

JANUARY 21

2.9

Tunisia:

3.90

Mohammed Ghannouchi pledges to quit politics after elections to be held as soon as possible.

JANUARY 25

2.8 3.85

Egypt:

Jan 24 Jan 25 Jan 26 Jan 27 Jan 28 Jan 31 Feb 1 Feb 2 Feb 3

Mohamed Bouazizi dies of his burns. Protests against unemployment and repression spread.

JANUARY 18

3.95

zł.

Tunisia’s Jasmine Revolution sparks popular protests around the Middle East and North Africa.

JANUARY 5

Egypt:

Average NBP exchange rates for EUR/PLN (in z∏oty)

Street vendor Mohamed Bouazizi sets fire to himself. Daily demonstrations and clashes with security forces ensue across the country.

Thousands of protesters demand an end to President Hosni Mubarak’s almost 30-year rule. Start of daily protests.

JANUARY 27

zł.

Jan 24 Jan 25 Jan 26 Jan 27 Jan 28 Jan 31 Feb 1 Feb 2 Feb 3

Source: Bankier.pl, NBP

Yemen:

Biggest demonstration since the start of protests.

Source: Bankier.pl, NBP

JANUARY 28 Egypt:

The Polish-Egyptian connection Direct trade links between the Poland and Egypt are tenuous.

According to figures from the Economy Ministry, in the period from January to November 2010, turnover amounted to $246.5 million, a decrease of 14.4 percent compared to the first 11 months of 2009. This figure includes Polish exports valued at $202.2 million and imports valued at $44.3 million.

Meanwhile, Polish FDI in Egypt was estimated at €8.3 million in 2008, while Egyptian capital investment in Poland in the same year amounted to €1.7 million. According to the Economy Ministry, most Polish businesses investing in Egypt are active in the sectors of tourism, commercial brokerage, construction, science, exploration and exploitation of natural resources (oil, natural gas), as well as modernization and expansion of rail infrastructure.

Sectors with potential for greater cooperation, according to the ministry, include the oil and gas, rolling stock and automotive industries. ●

Jordan:

Shifting sands (and other goods) Structure of trade between Poland and Egypt in 2009, % of total exports/imports

19.1%

30.8%

Wheat

5.4%

Mechanical and electrical equipment

7.4%

Mineral products (petroleum oils, coke)

15.9%

21.4%

Chemicals and drugs Other

13.9%

Pharaoh and balanced figures?

29.2%

4.5%

2005

2006

2007

2008

2009

Turnover

150.5

197.3

196.7

287.7

321.1

Exports

125.9

164.7

149.9

224.2

275.6

Imports

24.6

32.6

46.8

63.6

45.6

Balance

101.2

132.1

103.1

160.6

230.0

Source: Ministry of Economy

Egypt:

Plant-based products (dried fruits, citrus, potatoes) Chemical products

13.4% 16.5%

22.5%

Hosni Mubarak names intelligence chief Omar Suleiman vice president. It is the first person appointed to the position under Mr Mubarak’s rule.

JANUARY 31 Egypt: Algeria:

Yemen:

The army says it will not use force against protesters.

More than 10,000 protesters dispersed peacefully in the northern town of Bejaia.

Thousands of protesters gathered in two rural areas of the country to voice opposition to President Ali Abdullah Saleh’s ruling party.

FEBRUARY 1 Egypt:

Imports from Egypt Textiles

Trade between Poland and Egypt (in $ millions)

JANUARY 29

Exports to Egypt Articles from base metals

Hosni Mubarak pledges to dismiss his cabinet and forms a new government Thousands of protesters demand political reform, better economic conditions and the resignation of the prime minister.

Jordan:

President Mubarak announces he will not seek another term as president. Hundreds of thousands of protesters demand he step down immediately.

King Abdullah II fires his government and appoints Marouf alBakhit prime minister, asking him to make political reforms.

FEBRUARY 2 Yemen:

President Ali Abdullah Saleh announces he will not seek reelection at the end of his term in 2013.

Plastic products

FEBRUARY 3

Ready-made foods (coffee and tea)

Egypt:

Other

FEBRUARY 4 Yemen:

Violent clashes between opponents and supporters President Mubarak.

“Day of Rage” protests.

NORTH AFRICA & POLAND

FEBRUARY 7-13, 2011

www.wbj.pl

Outbound tourism

Legal Eye

Change of destination

Holidays and civil unrest

The situation in North Africa is straining Poland's outbound tourism industry

Holiday hazards So, how badly will the events in North Africa hurt the outbound tourism industry?

“Everything depends on how long the problem lasts,” answered Józef Ratajski, deputy president of the Polish Chamber of Tourism. “It’s not a tragedy yet.”

As of last week, many larger travel agencies had canceled trips to Egypt, including Rainbow Tours and Exim Tours (until February 14), TUI Polska and Itaka (March 1), as well as Triada (April 1).

Others, particularly the small-

Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners. fogo@pl.millercanfield.com On Monday, January 31, Poland’s Foreign Ministry warned Polish citizens not to travel to Egypt.

While Poland has not taken the decision to evacuate its citizens from Egypt, other countries have, including the US. In response to the travel warnings most holiday tour operators have since canceled their holiday packages to Egypt through the end of February or March, citing the current civil unrest as an event of force majeure.

But what exactly does force majeure mean? And more importantly, what recourse does a holder of a canceled travel package have against the tour operator in such a case?

SHUTTERSTOCK

It’s hard to imagine feeling relief at being in Warsaw in the midst of the dark, snowy winter, yet that’s exactly how tourists returning from Egypt last week described it. Compared with the violence and uncertainty pervading the streets of Egypt and the chaos at Cairo International Airport, the dull grey of Poland’s capital was, for those travelers, a respite.

There’s little relief in sight for the tourism industry, however. According to data from business intelligence provider Euromonitor International, Egypt was the seventh most popular tourist destination for Poles last year, and the top destination outside the EU. Tunisia, meanwhile, is the second most important North African market for tour operators.

So regime change in the latter and ongoing protests in the former – which have led the Polish Foreign Ministry to warn against travel to both nations – pose major obstacles for the industry.

Moreover, the industry is already coming off a tough year. Hamstrung by disasters such as the April tragedy in Smolensk, nationwide flooding and the volcanic ash from Iceland, outbound tourism figures in 2010 showed only slight growth on 2009. Data released

by Dun & Bradstreet last September indicated that many travel agencies were in dire financial straits, and two well-known firms – PBP Orbis and Selectours – went belly up, stranding tourists.

9

Force majeure

Headed for the airport? er firms, continued to offer travel packages, but demand was reportedly much lower.

According to Mr Ratajski, the situation is more serious

Last-minute offers Should the crises in North Africa continue to affect travel, it will take time for the industry to adapt.

“[Small family firms] will be the first to exit the market because they’ll have no way to earn a living” for small agents who sell offers for the North African market than for tour operators.

“Annually, Egypt is the number-one destination for Poles, about half a million people. With Tunisia the total is about 700,000 people. It’s not big tour operators selling to them, it’s small, family firms spread throughout Poland,” he stated. “And these will be the first to exit the market because they’ll have no way to earn a living.”

Meanwhile, stock-listed travel firms have taken a hit.

And, according to the Economy Ministry, there has been a growing number of small, Polish-funded travel firms appearing in Egypt over the past few years – these too are feeling the heat.

it’s a global tourism problem.

It’s not just us standing in line,” Mr Ratajski stated.

Nadejda Popova, an analyst at Euromonitor, suggests that Turkey, for one, may benefit from the situation during the Easter and summer holidays. EU markets too stand to gain.

“Mediterranean destinations such as Spain, which had lost share to these less expensive, non-euro zone countries, may be able to woo European tourists back to their beaches with promises of political stability,” she said.

Weather and price are the most important factors for tourists, according to Mr Ratajski. “That which is offered by the North African market – by E Blake Berry Tunisia and Egypt – won’t be easy to find a substitute for.”

South for the winter Morocco is one Stock performance of travel industry alternative which firms, full-year 2010 and January 2011 Triada and other big firms have suggestFull-year 2010 January 2011 ed. But, assuming 80 the country remains stable, there’s the 60 question of whether 40 it can even handle an explosion of 20 tourists.

“We have to 0 take into consider-20 ation that this pheInterferie Rainbow Tours Travelplanet nomenon doesn’t Source: Warsaw Stock Exchange affect just Poland,

Contrary to what some lawyers may think, force majeure does not have one meaning. In its simplest form, force majeure translates into “superior force.”

Polish law does not provide for a unified definition.

Rather, it is up to the author to define what is meant by force majeure in each and every contract.

Generally, however, force majeure is commonly understood to mean the occurrence of an event beyond the control of the parties to a contract, such as war, civil unrest, strike, riot, or an act of God (think earthquake, volcanic eruption, flooding) that prevents performance of a contract.

The current civil unrest in Egypt falls within the common meaning of force majeure. Regarding canceled holiday packages to Egypt, a tour operator is able to avoid performance due to a force majeure clause in each of their holiday travel contracts. This doesn’t mean, however, that a tour operator escapes all liability

toward its clients.

I want a refund At the same moment that most tour operators canceled their travel packages to Egypt, they also offered to provide those affected with comparable holiday packages to other destinations, such as Morocco and Cyprus, or alternatively a full refund.

Polish law does not require a tour operator to offer an alternative travel package, but most operators have done so in an effort to satisfy their clients. If a client does not accept another holiday package in lieu of their canceled trip to Egypt, the tour operator is required to refund the purchase price to the client, based in part on the legal doctrine of “unjust enrichment.”

Additional compensation?

What about penalties? Is a tour operator required to pay a monetary penalty to a holiday package ticket holder in case of a lastminute cancelation by the tour operator? After all, an airline is obligated to pay a penalty to a passenger who is involuntarily bumped from a plane, as well as arrange an alternative flight for the passenger. Shouldn’t the same apply to a client who is “bumped” from a holiday package to Egypt?

In short, the answer is no. EC Regulation 261/2004 states that an airline is not required to pay any penalty in the case of a flight delay or cancellation due to an extraordinary circumstance which could not have been avoided even if all reasonable measures had been taken. In other words, an event of force majeure. The same principle applies to holiday packages. ●

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10

BUSINESS ENVIRONMENT

www.wbj.pl

FEBRUARY 7-13, 2011

Manufacturing

Economic growth

PMI falls in January

Increased investment ahead?

Large increases in new export orders helped to drive Poland’s manufacturing Purchasing Manager’s Index score to 55.6 in January. By falling short of December’s nearrecord 56.3, however, the figure represented the first month-on-month decrease since July 2010.

The PMI – produced by HSBC and Markit – reflects the percentage of surveyed purchasing managers who reported an improvement in operating conditions on the previous month. A score above 50 suggests overall improvement in the business climate, while a figure below 50 suggests contraction.

Poland’s PMI has now stayed above the 50-point-mark for 15 consecutive months.

“Poland’s industry at the beginning of this year is still good. And as long as the economic situation in Germany does not deteriorate, Polish producers should not have reasons to be worried,” said Monika Kurtek, senior economist at Bank BPH.

January export orders rose at the fastest rate in the history of the survey, Markit analysts wrote in their latest report.

Overall new orders received by Polish manufacturers, meanwhile, increased at the secondfastest rate since May 2004.

Experts are, however, concerned that the soaring prices of those commodities used in production may soon start to be reflected strongly in output prices. “Inflationary pressures surged in January,” the report’s authors wrote.

“The input price index soared by an eye-popping 11.9 points to 78.0 in January – the highest level in series history,”

Dr Murat Ulgen, HSBC’s chief economist, Central & Eastern Europe and sub-Saharan Africa, said in the report.

“This sharp increase most likely reflects the recent rally in global commodity prices as well as the [January] VAT hike,” he explained.

Mr Ulgen added that, moving forward, these manufacturing-cost pressures could start to impact output prices across the economy.

Indeed, they may already be doing so, as manufacturers’ January output prices rose at the fastest rate since June 2004.

Gareth Price

Losing confidence?

Poland’s PMI score for the last eight months 57 55.6

56

55.9

56.3

55.6

54.7

55 54

53.8

53.3

53 52

52.1

51 50 49

* June 2010

July

August

September

October

November

December January 2011

* Anything above 50 indicates improvement on the previous month Source: HSBC and Markit’s Purchasing Manager's Index

The PM’s chief economic adviser expects GDP growth of at least four percent this year and a return to investment growth Jan Krzysztof Bielecki, the head of Prime Minister Donald Tusk’s Economic Council, has predicted Poland’s GDP will grow by four percent or more this year and that investment will also pick up after a two-year lull. Mr Bielecki made the comments at a meeting with members of the American Chamber of Commerce last week.

While domestic consumption, exports and public investments have remained strong in Poland for the last year or so, private investment has so far failed to pick up.

“The investment cycle in the Polish private sector is short. We usually see two to three years of investment growth and then two to three years when it hardly grows.

After the drop in investments which began in 2009 … this year will be the first in which investments in the private sector will grow,” said Mr Bielecki.

His optimism is backed up

COURTESY OF C.ROGI¡SKI - CIR

Export orders rose dramatically, but inflation is starting to worry economists

Private sector investment will grow this year, said Mr Bielecki, the Prime Minister’s top economic advisor by history. “According to the data, which go back to 1996, Mr Bielecki is right about the investment cycle in Poland.

The lows usually last roughly nine quarters and taking into consideration the fact that the latest drop started in Q1 of 2009, it should be coming to an end this quarter,” said Urszula Kryƒska, economist at Bank Millennium.

“The National Bank of Poland analyzes business trends each quarter and its most recent findings confirm that firms plan to increase outlays, although these don’t

seem to be new investments but rather expansions of existing ones or those made to offset losses during the crisis,” Ms Kryƒska added.

A February report published by the Gdaƒsk Institute for Market Economics (IBnGR) also seems to indicate a positive trend. Although investment outlays in Poland dropped by two percent through the whole of 2010, the last quarter did see an increase of 1.1 percent, the first quarter of growth recorded since the beginning of 2009.

Remi Adekoya

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OPINION

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11

Obstacles to the Polish-led Western Efforts in Belarus

P

oland hosted the “Solidarity with Belarus” conference February 2 in Warsaw. Representatives from around 40 countries, including officials from the European Union, United States and Canada, attended the conference, which was organized by Polish Foreign Minister Rados∏aw Sikorski.

The conference was meant to shore up financial support for Belarusian opposition groups, independent media and civil society. The European Commission has offered to quadruple its aid to Belarus from €4 million to €15.6 million, and Poland has expanded its development aid to the country to €10 million. According to Sikorski, Belarusian opposition groups won pledges totaling €87 million from donor nations at the conference.

Ultimately, this donor conference – and EU and Polish-led efforts to form political links with Belarus – will have negligible effects on the Belarusian political scene in the short-term. However, the conference sets the scene for a longer-term political tug-of-war among various players over the strategically located country – a contest that Poland and the West will be unlikely to win.

Western interest in Belarus grew ahead of the country’s highly anticipated presidential election in December 2010.

However, after the re-election of incumbent President Alexander Lukashenko and the subsequent crackdown, Belarusian opposition is quite weak. There is no unified leadership, and now that Lukashenko has won re-election and does not have to worry about his international legitimacy, he has cracked down on the opposition leaders and groups even harder using his favorite tool: the KGB and the security apparatus.

In this context, the pledges made at the conference are not as important as the interests and constraints of the major players, including Europe, Russia and the United States, regarding Belarus.

Poland Warsaw has taken the leading role on behalf of the West in pursuing political ties with Belarus. As evidenced by Poland’s hosting the donor conference and, along with Sweden, being an initiator of the Eastern Partnership program, as well as by the high-profile visits Sikorski made to Belarus just before

the election, all initiatives pertaining to Minsk go through Warsaw.

Poland (also along with Sweden) is advocating tougher sanctions against Belarusian leadership and is giving more support to the various opposition, democratic and pro-Western groups in Belarus.

It hopes other powers in Europe and the United States follow suit.

But Poland faces several obstacles, not least of which are Russia’s entrenching its influence in Belarus, and an unassertive Germany that is cozying up to Russia. Poland also has internal issues to deal with: Polish Prime Minister Donald Tusk and President Bronis∏aw Komorowski have been pretty quiet on Belarus, letting Sikorski push the issue.

This raises the question of whether they are truly behind the issue, or whether this is part

“Berlin has not taken the more assertive approach that Poland favors” of a strategy to take votes away from the opposition Law and Justice Party (PiS) before parliamentary elections in late 2011.

The criticism leveled at Tusk and his party is that they are too close to, or unwilling to confront, Moscow, a criticism PiS will no doubt exploit. So Tusk and Komorowski have allowed Sikorski to champion the Belarus issue in order to show that Poland can stand up to Moscow, while maintaining sufficient distance from the issue themselves to avoid inviting retribution from Moscow.

The Polish government, aside from Sikorski, has not really thrown its full weight behind the Belarusian initiatives, and if Poland is playing domestic politics, then the issue could lose much of its steam after elections.

Germany As STRATFOR has written, Germany’s support for the Belarusian opposition only goes as far as voting for the travel and visa restrictions for Lukashenko and other authorities at the recent European Union meeting on the issue.

Berlin has not taken the more assertive approach that Poland favors, and instead is playing a cautious role as it builds economic and political links with

Russia, whose interest is that of limiting Western ties with Belarus.

Lithuania Lithuania has an important and potentially pivotal role regarding Minsk, as it has the closest political and economic ties to Belarus of all the Baltic states. There were reports of an unscheduled meeting between Lithuanian President Dalia Grybauskaite and Uladzimir Makei, head of the Belarusian presidential administration and a member of Lukashenko’s inner circle, just before the European Union voted on sanctions. It was the Baltics, and particularly Lithuania, that pushed against economic sanctions at the EU meeting in order to avoid hurting ordinary Belarusian citizens, showing the Belarusian public that its voice was heard on the issue.

Meanwhile, Russia is trying to boost its influence in the Baltics, but has been rebuffed more by Lithuania than any other country. Relations between Poland and Lithuania have also been tense, and although the Belarus issue seems as though it could unite them, it does not appear to have done so yet.

Russia According to STRATFOR sources in Moscow, no one in the Kremlin is even talking about Belarus anymore.

Lukashenko’s re-election and the ensuing crackdown on the opposition suited Russia. Russia showed its support for Lukashenko by implicitly backing him just days before the elections with an energy and customs deal. As long as the West does not make major moves or gains with the Belarusian opposition, Minsk is simply not a high priority for Moscow right now. Russia is just fine with the status quo.

The United States Like Germany, the United States has not taken a leading role regarding Belarus. While Washington, along with the European Union, applied travel sanctions and an asset freeze against Belarusian authorities, the United States does not have the time or energy to build any meaningful ties with Belarusian groups, other than providing cash. ● This edited version of “Obstacles to the Polish-led Western Efforts in Belarus” is reprinted with permission of STRATFOR

Solidarity in North Africa

T

he recent upheaval in North Africa has led some to compare this to events in Poland 20 years ago, when shipyard workers led by Lech Wa∏´sa initiated strikes that reverberated through the nation and the region.

Especially because the events in Egypt were preceded by a successful revolution in Tunisia, there is talk of the possibility of a new era in the Arab world, reminiscent of the revolutions of 1989. The hope, of course, is that the events currently dominating international news outlets will usher in democracy and greater freedom for the citizens of Arab countries, who have been suffering under the yokes of dictatorships for decades.

But will it actually turn out that way? Or will the region fall into a morass of instability and a safe haven for militants and terrorists? Or something in between?

Those are the $64 billion questions these days.

Falling dominoes?

What we know with certainty is that the Tunisians and Egyptians are not alone in their disillusionment and fatigue. The Jordanians, the Yemeni, the Moroccans and the Algerians have all taken to the streets to protest against their governments in

recent weeks.

The future of Tunisia is relatively clear – the president has abandoned his fiefdom and those who remain will vie for power for some time. As WBJ went to press, Egypt’s path was less clear. President Hosni Mubarak has clung tenaciously to power, and, in the event of his departure a power-sharing arrangement would take time to hammer out.

As for the other countries, whether their demonstrations result in regime change will depend in part on Egypt’s fate.

Judging by the state of affairs today, the analogy of dominoes falling throughout a region is apt enough, although time will tell if it proves out.

In need of opportunity There are other similarities.

Both cases involve populaces exhausted by repression and economic malaise. Communism was a system which ostensibly eradicated unemployment, but only by saddling people with meagerly paid jobs and low living standards. With the exception of certain apparatchiks, society was almost uniformly underprivileged.

Meanwhile, the Egyptian economic system – like those of its peers – is riven by social and economic inequality.

Making history One further similarity: in both situations, protestors comprise(d) people of many social groups. The young and the old, the educated and the uneducated, the rural and the urban – all of these demonstrating together. Solidarity, in other words.

Does the analogy truly work though? In part, though not in whole. Time will tell how close it comes in the end.

Twenty years from now, historians may well look back and snort with derision at attempts to compare the end of communism with the events in North Africa in 2011. But it would be a fine thing if they didn’t. ●

EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL) MANAGING DIRECTOR MONIKA STAWICKA DEPUTY EDITOR

POLITICS EDITOR

E. BLAKE BERRY (BBERRY@WBJ.PL)

REMI ADEKOYA

ONLINE & NEWS EDITOR

INTERNATIONAL EDITOR

GARETH PRICE (GPRICE@WBJ.PL)

ALICE TRUDELLE

REAL ESTATE EDITOR

CONTRIBUTORS

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL)

EWA BONIECKA ANTHONY CASEY

(RADEKOYA@WBJ.PL)

(ATRUDELLE@WBJ.PL)

RICHARD WERNICK JOANNA WÓYCICKA INTERNS

ALEX HAYES NATALIA KAZIK KATARZYNA PIASECKA CARTOONS

PIOTR WYSKOK

WBJ SALES & ADVERTISING

Unless otherwise noted, the opinions here are those of Warsaw Business Journal Readers’ comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

Unemployment in the country is estimated at anywhere between 20 to 30 percent and the worst-off are the young, who have unsurprisingly taken part in the protests with zeal.

But the lack of economic prospects lies at the heart of both situations – that of Poland of 1989 and the Egypt of today. Poles 20 years ago were keenly aware that the West, so tantalizingly close, was a place of prosperity and opportunity. The majority of Egyptians, meanwhile, have seen both of these things monopolized by their autocratic state.

PAUL FOGO JUDITH GLINIECKI TOMASZ JERZYK ADAM NARCZEWSKI PRODUCTION MANAGER

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¸UKASZ MAZUREK PRINT & DISTRIBUTION COORDINATOR

MARKETING &SALES

PR & MARKETING MANAGER

AGNIESZKA BREJWO (ABREJWO@WBJ.PL)

KATARZYNA DRAGAN (KDRAGAN@WBJ.PL)

KATARZYNA PINKIEWICZ (KPINKIEWICZ@WBJ.PL)

SUBSCRIPTIONS MANAGER

JOWITA MALICH (JMALICH@WBJ.PL)

COLUMNISTS

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

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BOOK OF LISTS SPECIALIST

JOANNA RASZKA (JRASZKA@VALKEA.COM)

INTERVIEW

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Polish poultry in China Chinese veterinary authorities have granted permission for the import of Polish poultry.

Companies authorized to export their products to China include SuperDrob, Alima-Gerber, PPUH Prosper, Storteboom Hamrol and Meat Plant Biernacki from Jarocin, Puls Biznesu reports.

Small shops disappearing Small shops are disappearing from the Polish market, reports Dziennik Gazeta Prawna.

In 2010, around 7,000 closed their doors.

According to research conducted by Dun & Bradstreet, 364,000 small shops are currently registered in Poland.

Fast e-store growth Although Poles spend three times less than the European average on internet purchases, the size of the Polish emarket grew by 35% last year. It is now valued at around €4.5 billion. ●

FEBRUARY 7-13, 2011

Food exports

A taste of Poland Agriculture Minister Marek Sawicki talks to WBJ about successes and obstacles in promoting Polish food in Europe, Asia and Poland’s eastern neighbors Alice Trudelle: What is the outlook for Polish food and agriculture exports in 2011?

Minister Sawicki: Exports of Polish agri-food products have maintained their pace of growth, even during the worst phase of the global crisis, being the only Polish foreign trade sector with a positive balance during the slowdown.

In 2010, the surplus in trade of agri-food products amounted to €2.5 billion. I am convinced that growth will continue in 2011 and the result should be even better, as intensifying promotion is one of my priorities.

We started off with a very strong appearance at the Green Week in Berlin in January. This year Poland had the honor of holding the title of Partner Country. We proposed a culinary journey across Poland entitled “The Flavours of Poland”. We hit the jackpot.

The interest in our food prod-

ucts turned out to be very high, which will definitely have an impact on the results of foreign trade.

And what products have drawn the most interest lately?

Interest in individual products varies, depending on the destination of exports. Our meat and dairy products sell well, but there are destinations where fruit and vegetables are preferred. It is hard to single out any particular product.

The volume of exports depends to a great extent on the efficiency of entrepreneurs, as well as on promotion.

It is not a secret that advertising helps to boost sales, and that marketing has a very strong impact on consumers.

This year, EU and national promotion funds will also play a significant role.

What trends could influence the export of Polish food and

COURTESY OF THE AGRICULTURE MINISTRY

12

Agriculture Minister Marek Sawicki believes the taste of its traditional products gives Poland an advantage agricultural products in 2011?

Not everything can be predicted. Today, we cannot be certain what the situation will be by the end of the year. Looking at global markets, we have to take account of the huge floods in Australia and in Brazil – both large players on the agricultural market, especially, but not exclusively for corn.

New offers have a comparative advantage, if only they are properly promoted. In the longer perspective, however, it is important to maintain this competitive advantage by offering a regular supply of products of unchanging taste and quality. Poland is renowned for these qualities.

We have perfect raw materials. Our agriculture is based on tradition. We may be labeled modern traditionalists.

We have kept a traditional way of farming, not using chemicals excessively and taking care of the environment. Thus, the products we offer meet the demands of contemporary consumers.

Today, we are witnessing a trend of moving away from fast food, and consumers are increasingly looking for traditional products.

This is what we offer. Polish ham tastes and smells like ham, and Polish bread tastes and smells like bread. Moreover each product has its own character, and is produced in very modern plants which guarantee not only high qual-

ity, but also the highest level of food safety.

Technological novelties are interesting, but should not run counter to what consumers expect.

Today, wealthy European consumers look for natural products which are tasty and safe, free of artificial additives and preservatives.

What are the most promising markets for Polish food and agriculture?

Currently, the EU market is dominant, and within the EU Germany is the biggest importer of Polish agri-food products. This trend will surely continue.

Nevertheless, the hard work of myself and the Ministry staff has brought us access to new, very attractive, although extremely demanding markets, such as Japan.

Our prospects for other Asian markets, such as China, South Korea and Vietnam also look very promising.

Our participation in Expo 2010 in Shanghai was a great success, and the Polish stand attracted much interest. The promotional activities undertaken and the efforts made with the intention of gaining access to Asian markets will soon begin to bring results.

The above is true not only about pork which enjoys great popularity. Our potential partners are also interested in Polish poultry and dairy products. We offer excellent goods, and although the Asian market is demanding,

we are capable of fulfilling its demands.

What about other markets?

Let me start with the CIS countries. Right after becoming the minister of agriculture I was faced with several problems with this market. However, already in 2007 I made an attempt to engage in direct talks and it did not take long to see the results.

Soon, Polish exports to CIS countries resumed – not immediately and not in full, but gradually. I am not discouraged by difficulties, and I continuously strive to improve the dialogue.

Thanks to this, the export to CIS countries is growing.

Poland participates in fairs and exhibitions, we maintain a dialogue with Russian authorities, and we strive to regain our lost position. Anyone familiar with trade understands that the process of returning to a market is hard and complex, but the most important thing is that it is developing.

The prospects for the Arab market are also improving. And we should not forget about the American market.

Our initiatives do not always have an immediate effect or bring about measurable economic results. I am sure, however, that they will bring positive results in the long-term.

Some of today’s efforts to access new markets will bear fruit for my successors, but we will all benefit. In agriculture it is essential to think about the long term, as plans are made years in advance. ●

BUSINESS COMMUNITY

FEBRUARY 7-13, 2011

Chambers of Commerce Corner AmCham Business Mixer in the New Year The American Chamber of Commerce in Poland together with the Nowa La Boheme Restaurant put on the first AmCham business mixer of the new year last month.

Celebrity Beauty & Spa and Royal Unibrew were the supporting sponsors. Warsaw Business Journal and American Investor were the media patrons. ●

COURTESY OF AMCHAM

News

Views Food sector: survival of the fittest from the British Polish Chamber of Commerce blog by Michael Dembinski Times are tough for Poland’s food producers – and they are going to get much tougher.

Many will be squeezed out of business by rising raw materials prices and pressure from retailers. For those who survive, the rewards will be larger market share. This is inevitable – people will never stop eating. Global food price inflation is running at a frightening rate.

In Poland, wheat prices are up nearly 80 percent year-on-year. Australian floods, Russian fires – the global climate is not on the side of food producers. At the same time, retailers are increasing the pressure on their suppliers as never before as they struggle to regain pre-recession levels of profitability and growth. Consumers are becoming evermore demanding, especially when it comes to quality; they are looking for products with fewer additives, while trends such as organic food and fair trade are looking to become more mainstream.

So the entire food production sector is facing unprecedentedly difficult trading conditions. Many firms will go bust, unable to cope with the intense squeeze. But to the victors the spoils. Food is not something that can be replaced by anything else; the highly fragmented Polish agrifood sector – made up of tens of thousands of family-owned smalland medium-sized businesses – will consolidate.

Who will come out on top? What can owners of such firms do to prosper in such tough times? Much of the answer lies in optimizing their processes. Lean manufacturing – which the automotive sector has taken to heart across the entire supply chain – needs to be implemented into food businesses with the same enthusiasm. The lean philosophy, kaizen – continuous bottom-up improvement – relies on the workforce to be totally engaged in the process, taking ownership of the need to improve constantly.

But this is only part of the story. Logistics,

standards, marketing, packaging design, branding – these are all issues that the winners will be addressing. By implementing global best practices across all business areas, the owners of these companies will also be significantly increasing their value.

As the sector is forced to consolidate, strategic investors and private equity funds will be eyeing the market with a view to acquisition targets. Those owner-managers who are ahead of the game when it comes to lean manufacturing, those who have optimized their order-to-delivery cycles and can display a sheaf of implemented standards, will be able to cut a better deal when it comes to selling their business or raising money on capital markets.

Preparing for an IPO, the owner-manager will also need to talk up a good story when it comes to best practice. Shareholders are looking to invest in companies that are well-managed, but also ones that have plentiful upside when it comes to growth potential. Brand value is crucial. Few Polish-owned companies in the food sector have properly valued their brands, optimized their visual effectiveness or considered how to properly extend the brand at home or in export markets.

In all these areas, BPCC members can offer the owners of such firms measurable results when it comes to increasing the value of their business through the implementation of best practice.

So join us on March 17 at the 4th BritishPolish Agrifood Forum, where Polish food producers will come to learn about how to survive and thrive in an extremely tough market and increase the value of their businesses.

The event, organized by the BPCC with Trusted Adviser Group, will be the first in a series of BPCC events aimed at reaching out to Polish owner-managers across business sectors with a view to suggesting to them that they need professional advisory services to optimize the value of their companies. ●

Upcoming events AmCham: The future of railroads in Poland

AmCham: Warsaw City finances meeting

Date and location: Wednesday, February 16 at 9:30 AM in the AmCham Boardroom (Warsaw Financial Center, ul. Emilii Plater 53, 14th floor).

Date and location: Tuesday, February 22 at 9:30 AM. in the AmCham Boardroom (Warsaw Financial Center, ul. Emilii Plater 53, 14th floor)

AmCham will host a lecture entitled “The future of railroads in Poland,” in mid-February.

Marek Pawlik, strategy and development director at PLK, the management company responsible for the railroad network in Poland, will talk about investment plans, railway line modernization and the future of rail infrastructure in Poland.

On behalf of the Financial Services Committee AmCham will host a meeting about Warsaw City finances. Bogdan Nawrocki, deputy director at the Debt and Financial Policy Department, Warsaw City Hall, will speak about the state of Warsaw's finances. He will focus on how financial markets treat municipal bonds and will discuss how the situation in public finances can influence municipal investments in subsequent years.

Please R.S.V.P. to robert.chomik@Amcham.pl Tel: +48 22 520-5997

Please R.S.V.P. to robert.chomik@Amcham.pl Tel: +48 22 520-5997

www.wbj.pl

13

ProLogis and AMB Property Corporation are merging to become a mega-developer

Warsaw’s largest business parks are growing in response to strong demand 16

17

LOKALE IMMOBILIA

W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t

Best Western in Rzeszów Rzeszów, Podkarpackie voivodship, has a new hotel facility. At the end of January, the three-star Best Western Hotel Ferdynand project opened in the city, providing 39 rooms with a total of 70 beds as well as a conference room for 45 people. The hotel is located in a historical building situated on the city’s ul. Grottgera which has been renovated and reconstructed. KMG Investments and Niza Travel are the investors behind the project; the latter company is also managing the property. ●

In this issue Warbud’s Plac Unii deal . . . . . .15 Euro Styl’s Opera . . . . . . . . . . . .15 The lack of REITs . . . . . . . . . . . .16 Echo near Kielce . . . . . . . . . . . .16 New office park in Szczecin . .16 ProLogis-AMB tie-up . . . . . . . . .16 Property-related stocks . . . . .16 Business parks in Warsaw . . . .17 Financing for malls . . . . . . . . . .18

Mixed-use

Warbud chosen for Plac Unii contract The construction firm will lay the groundwork for the z∏.550 million scheme Construction firm Warbud has been chosen to perform underground contracting work on Plac Unii in downtown Warsaw. The firm will earn more than z∏.56 million for its services.

The contract gives Warbud responsibility for four underground floors. It will lay 432 meters of 80-cm thick reinforced concrete diaphram wall, along with a drainage ditch, with work scheduled for completion by April 2012.

“The construction of Plac Unii is being carried out on schedule. We have selected

Warbud as the general contractor for underground work because the firm has a

great deal of experience, which guarantees work of the highest quality, which is in

line with the standards we adopt for any investment project,” stated Marc Lebbe,

COURTESY OF LIEBRECHT & WOOD

Following successful sales in its Gemini residential project in Warsaw’s Ursynów district, developer Ronson is now launching construction on the scheme’s second phase.

The firm will deliver two new buildings, comprising a total of 167 units sized from 40-135 sqm, by August 2012.

Prices range from z∏.8,500-10,500 per sqm. Gemini II will be built by Hochtief Polska, which also served as general contractor of the first phase of the project, as well as of other Ronson schemes in the Polish capital, such as Meridian, Mistral and Lazurowa Dolina.

FEBRUARY 7-13, 2011, LI 16/05

managing director of Liebrecht & Wood Polska, one of the investors.

A general contractor for the rest of the development will be chosen in mid-2011.

Plac Unii is a z∏.550 million office and retail project which will ultimately comprise a 21storey skyscraper skirted by a pair of six-storey buildings.

The complex will offer more than 41,000 sqm of class-A office space and space for around 800 vehicles in a threestorey parking area.

There will also be a 15,500 sqm “City Gallery” comprising restaurants, cafes, banks, laundry services and a supermarket. Plac Unii is scheduled for delivery in mid-2013.

Plac Unii will offer 41,000 sqm of office space

E Blake Berry

Office space

Stage being set for Opera Office Gdaƒsk-based developer Euro Styl is gearing up for its Opera investment Euro Styl is ramping up preparations for its Opera Office project in Gdaƒsk.

The firm has just chosen Jones Lang LaSalle to serve as exclusive leasing agent for the development. And, according to a representative of the firm, construction is expected to launch next month.

Delivery of the building is currently scheduled for H2 2012.

Standing four to five storeys tall, the class-A Opera Office facility will offer some 7,000 sqm of office space. It will be located on Al. Zwyci´stwa, on the boundary of Gdaƒsk’s central and Wrzeszcz districts. A total of around 194 parking spaces will be available.

“I deeply believe in Opera Office’s location,” Magdalena Reƒska, manager of Jones

COURTESY OF JONES LANG LASALLE

Work starts on Gemini II

•

Work on Opera Office should start in March Lang LaSalle’s Gdaƒsk office, stated. She noted that the area in question is currently popular with firms looking for office space in the city, particularly those which cooperate with

municipal entities or need easy access to Gdaƒsk Shipyard.

Gdaƒsk-based Euro Styl is also engaged in a number of other projects across the country. The largest of these is

Centaurus, a 32,000 sqm, mixed-use investment being developed in the northern city of Olsztyn.

In Gdaƒsk, meanwhile, the firm is expected to launch

work on Euro Office Park later this year. Space in the 12,500 sqm project will be offered for sale as well as for lease.

Adam Zdrodowski

Warsaw Business Journal presents Real Estate weekly newsletter • Know about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions • Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate To subscribe: e-mail subscribe@wbj.pl c +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription or call

LOKALE IMMOBILIA – REAL ESTATE

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Real estate investment trusts

Echo Investment launches Osiedle Po∏udniowe scheme

Ready for REITs?

COURTESY OF PARTNER OF PROMOTION

Poland is missing out on a profitable investment vehicle, says advisory The real estate investment trust (REIT), an investment vehicle found in a number of world markets, remains virtually unknown in Poland. And that, according to financial advisory Expander, is a pity.

In recent research, the firm cites an average return rate for the last decade of more than 10 percent. That figure is drawn from Global Property Research’s regional REIT indices.

REITs are corporate entities subject to reduced or no corporate income tax. They can be publicly or privately held and are required to pay out 75 to 90 percent of income in dividends.

To be able to accommodate such entities on the domestic market, Poland needs to implement better regulations, according to Tomasz Go∏yÊ, a financial analyst at Expander.

He notes that this is an issue present even at the EU level and that many member states have REITs which either function under a different name or in a slightly different fashion.

Segro, whose logistics developments include this one in ¸ódê, converted to REIT status in 2007 Among a REIT’s benefits, Expander lists low taxes, stability and relatively low management costs. Moreover, the rate of return can be extremely good.

During the 2001 to H1 2007 period – pre-crisis, in other words – the average return among REITs on the GPR 250 REIT World Index was over 320 percent. The global economic crisis took a big bite out of that, but REITs on the index still recovered to end the decade with an average rate of return of more than 100 per-

FEBRUARY 7-13, 2011

cent compared to 2001.

Although there are no REITs traded on the Warsaw Stock Exchange, they have been active in the country.

British commercial investor and developer Segro is a good example – the company entered the Polish market in 2006 and converted to REIT status in 2007. It owns and operates a number of logistics parks, including Segro Logistics Park Gdaƒsk and Tulipan Parks in Gliwice and Warsaw.

Katarzyna Piasecka

Property-related stocks Security

Closing price on Feb 03

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

BUDIMEX

96.70

-2.91

74.00

106.10

25.58

25,530,098

2,468.76

CELTIC

18.59

-0.05

17.43

60.55

N/A

34,068,252

633.33

DOMDEV

47.30

0.42

38.52

61.00

13.98

24,560,222

1,161.70

ECHO

4.49

1.35

3.71

5.40

11.14

420,000,000

1,885.80

ELBUDOWA

168.40

1.08

155.00

188.40

0.24

4,747,608

799.50

ENERGOPLD

3.81

0.00

3.57

4.50

-13.41

70,972,001

270.40

ERBUD

51.45

-1.81

47.00

61.00

-1.34

12,602,711

648.41

GANT

16.50

-2.08

15.69

26.00

-9.69

20,499,953

338.25

GTC

20.76

-0.95

20.25

25.00

-10.79

219,372,990

4,554.18

HBPOLSKA

2.61

-3.33

2.54

3.95

-33.59

210,558,445

549.56

JWCONSTR

13.97

-3.59

11.06

18.69

18.39

54,073,280

755.40

LCCORP

1.51

0.00

1.37

1.73

0.67

447,558,311

675.81

MARVIPOL

9.70

0.94

8.83

22.31

-39.75

36,923,400

358.16

MIRBUD

4.34

-1.36

2.71

4.60

48.12

75,000,000

325.50

MOSTALWAR

47.10

-3.80

47.10

77.00

-25.59

20,000,000

942.00

MOSTALZAB

2.63

-2.59

2.63

4.84

-35.54

149,130,538

392.21

ORCOGROUP

30.90

10.36

19.00

33.50

18.44

14,053,866

434.26

PBG

207.00

0.29

192.00

252.00

-0.96

14,295,000

2,959.07

PLAZACNTR

4.10

-4.43

4.10

6.52

-31.44

292,647,720

1,199.86

POLAQUA

20.29

2.47

14.94

22.50

22.23

27,500,100

557.98

POLIMEXMS

3.60

-4.51

3.60

2.59

-18.37

521,035,327

1,875.73

POLNORD

32.61

2.23

30.10

44.00

-1.21

22,235,021

725.08

RANKPROGR

10.37

-1.61

9.59

10.96

N/A

37,145,050

385.19

ROBYG

1.83

-1.08

1.70

1.94

N/A

257,390,000

471.02

RONSON

1.40

-2.78

1.36

2.10

-15.15

272,360,000

381.30

TRAKCJA

3.65

-3.95

3.65

4.97

-10.10

160,105,480

584.39

ULMA

82.00

0.99

70.00

86.20

-4.65

5,255,632

430.96

UNIBEP

9.81

-0.10

5.99

10.30

57.97

33,927,184

332.83

WARIMPEX

9.86

1.65

7.64

10.30

16.69

54,000,000

532.44

ZUE

14.45

3.21

13.92

15.14

N/A

22,000,000

317.90

Developer Echo Investment has started the realization of its Osiedle Po∏udniowe residential project in Dyminy near Kielce, Âwi´tokrzyskie voivodship. The project is unusual in that Echo won’t build the homes itself, leaving that to the buyers.

The development will be built in three stages. The first stage comprises 29 plots on which detached houses will be constructed and 40 plots on which terraced houses will be built. Echo Investment’s development packages comprise land, home design and building permit, with prices ranging from z∏.159-225 per sqm of land depending on the size and location of the plot.

Buyers should be able to start construction on their new homes by the end of this year.

“Dyminy is definitely one of the most interesting investment areas. The estate is located near a forest, on the southern side of a hill from which there is a scenic view. It is an ideal place for people who want to

COURTESY OF ECHO INVESTMENT

16

Echo is leaving construction of the homes up to buyers be surrounded by nature and have easy access to the attractions of a town at the same time,” Marlena Romaƒska, sales manager at Echo Investment, said in a statement.

Listed on the Warsaw Stock Exchange since 1996, Echo Investment is one of the

largest Polish real estate investors and developers. To date the firm has completed over 80 projects in 28 cities, totaling some 700,000 sqm of space. The developer is also present in the Hungarian, Romanian and Ukrainian Adam Zdrodowski markets.

Realkapital builds in Szczecin Norwegian developer Realkapital is launching construction on a new business park in Szczecin, Zachodniopomorskie voivodship. Called Piastów Office Park, the investment is valued at €30 million.

The complex will be built on an 8,000-sqm plot located at the intersection of Al. Piastów, Al. Bohaterów Warszawy and ul. Dàbrowskiego. It previously belonged to a since-dissolved cooperative named Meblosprz´t.

“We bought it last sum-

mer,” Realkapital’s Magnus Isaksson told Gazeta Szczecin.

“We planed to invest here because there’s a good climate in Szczecin for this kind of undertaking.”

The first building in the park is expected to be finished by the end of Q3 2012 and the whole scheme is scheduled for completion in Q4 2013.

“This will be a very modern edifice. We’ve already begun the first negotiations with our potential contractors,” Mr Isaksson added.

The design of Piastów Office Park, which was furnished by Warsaw’s Atelier 7 Architektura Marcin Gnich, calls for the delivery of three buildings with a combined area of 20,000 sqm. A threestorey underground parking lot will also be provided. Apart from office space, the buildings will host service areas on their ground floors.

Realkapital is also present in Szczecin’s residential market, with its Park Ostrowska project. Katarzyna Piasecka

ProLogis and AMB join forces to create huge global industrial-real estate firm International industrial real estate companies ProLogis and AMB Property Corporation announced that they are merging, creating a huge global owner, operator and developer of industrial real estate.

The all-stock merger is intended to be a tax-free transaction and is scheduled to be closed in the second quarter of this year.

When merged, the partners will hold common assets of approximately 55.7 million sqm of industrial property located in 22 countries.

“Combined, the companies are expected to have a pro forma equity market capitalization of approximately $14 billion, a total market capitalization in excess of $24 billion, and gross assets owned and

managed of approximately $46 billion,” the companies said in a joint press release.

Under the terms of the merger agreement, each ProLogis common share will be converted into 0.4464 of a newly issued AMB common share. The whole transaction is subject to the approval of ProLogis’ and AMB’s shareholders. After the merger the firm will retain the name ProLogis.

Upon full integration, expected to occur within the 18-month period following the closing, the companies estimate the new firm will save approximately $80 million in general and administrative expenses.

Through December 31, 2012, Hamid R. Moghadam,

AMB’s CEO, and Walter C. Rakowich, ProLogis’ CEO, will serve as co-CEOs of the combined company. After that date, Mr Rakowich will retire, and Mr Moghadam will become sole CEO of the combined company.

The board of directors of the merged firm will consist of six board members designated

by ProLogis and five board members designated by AMB. The combined company’s corporate headquarters will be located in San Francisco and its operations headquarters will be located in Denver.

ProLogis’ portfolio in Poland comprises more than 2.1 million sqm of space located within 25 distribution parks around the country.

Katarzyna Piasecka

FEBRUARY 7-13, 2011

LOKALE IMMOBILIA – REAL ESTATE

Office space

Booming business parks Adam Zdrodowski With demand for office space in Warsaw on the rebound, developers are expanding existing business parks in the city and planning new ones launch on the first phase of SwedeCenter’s Business Garden complex on ul. ˚wirki i Wigury, which is expected to be one of the capital’s largest office projects when completed. Sitting on six hectares of land, the development will comprise seven buildings with a total of 90,000 sqm of leasable office space.

Meanwhile, existing office

COURTESY OF ADVANCED PUBLIC RELATIONS

A host of business park investments have recently been announced or launched in Warsaw, a clear sign that sentiment in the office sector is improving. Experts point out that office projects of this kind have been popular with tenants in the capital and predict more to appear in the market in the near future.

Construction will soon

parks in Warsaw are being expanded. Construction on the second phase of UBM’s and CA Immo’s Poleczki Business Park started last month; by 2018 the property is expected to encompass 15 buildings.

Two new three-storey structures will provide a total of more than 21,000 sqm of office space.

The first phase of Poleczki Business Park, which was delivered in March last year and comprises a total of approximately 45,000 sqm of GLA, is now 82 percent

GTC is planning a fifth phase of its Platinium Business Park

leased out.

“Strong interest in office space in [Poleczki Business Park] and the positive feed-

“Office parks are attractive because they have assets that standalone buildings lack” back from the first tenants of our park enabled us to start implementing the second phase according to schedule.

We plan to finish the second phase of the project in the second quarter of 2012,” said Jacek Luzar, head of sales department at UBM. For its part, Polnord recently started realization of the B3 phase of its Wilanów Office Park project and the B2 phase should launch soon too.

Scheduled for completion in Q1 2012 and Q3 2012, respectively, they will provide over 8,100 sqm and approximately 6,400 sqm of GLA. Once completed, the complex will consist of 18 buildings offering a total of 140,000 sqm of office space.

Globe Trade Centre is also further developing its Ok´cie Business Park – construction is now underway on a third building, called Corius, which is scheduled for completion in December. And the company’s Platinium Business Park complex will get a fifth structure; although no exact date has yet been set for the start of construction, GTC says it will launch within a few months.

Attractive assets ¸ukasz Ka∏´dkiewicz, director of the office department at CB Richard Ellis Polska, admitted that in the Warsaw market projects such as Ok´cie Business Park, Platinium Business Park, Business Garden, Poleczki Business Park and Wilanów Office Park are being very actively commercialized these days.

“Office parks are currently attractive products for tenants due to assets which standalone office buildings sometimes lack,” Mr Ka∏´dkiewicz said. He explained that those included the possibility of expansion within one investment. The consecutive phases of a park may be delivered year after year and a tenant may simply take up more space in the project as the need arises.

Mr Ka∏´dkiewicz also pointed out that office parks tend to have a better-developed service component, including restaurants and newsagents, than stand-alone office buildings. Last but not least, office parks often offer their tenants transportation services, with special shuttle buses plying between the particular office park and the nearest subway station.

No wonder, perhaps, that many other schemes of this kind are now being planned in the Polish capital. Developments which are currently in the pipeline include Europlan’s EuroPark in Warsaw’s Mokotów district, Concept Development’s Concept Business Park in Bielany and Barrington Holdings’ West Park in Wola. ●

www.wbj.pl

17

Futurestep in Adgar Plaza Futurestep, a provider of strategic talent acquisition solutions, will open a Polish office in the Adgar Plaza office complex in Warsaw’s Mokotów district. The company recently took up 360 sqm of space in building B of the scheme.

Inditex brands in Katowicka Fashion brand owner Inditex Group has signed a lease agreement with Neinver for space in the latter’s Galeria Katowicka project in central Katowice. Inditex brands Zara, Pull and Bear, Bershka, Stradivarius, Oysho and Massimo Dutti will occupy a total of 4,000 sqm on the first floor of the mall.

CCC in Leszno, Jantar Footwear retailer CCC has signed a pair of new lease agreements. In Galeria Leszno, a retail center under construction in Wielkopolskie voivodship, the firm will take up 330 sqm. In CH Jantar, meanwhile, CCC has inked a deal to more than double its space.

The shopping center, located in the Pomorskie voivodship town of S∏upsk, will soon launch revitalization work to increase its total leasable area. The footwear company will occupy around 550 sqm in the enlarged CH Jantar. ●

18

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Shopping center financing

Rossmann goes Green

In search of a backer

Zielona Przystaƒ (Green Haven), a shopping center project being realized in the western city of Gorzów Wielkopolski, has added a new tenant. Personalcare products chain Rossmann will occupy 336 sqm on the ground floor near the mall’s main entrance. Zielona Przystaƒ has been valued at z∏.60 million. Upon completion, scheduled for this November, the development will bring 10,500 sqm of GLA to the local market.

Financing for retail developments has improved, but a full recovery will take time Poland’s retail real estate sector had something of a breakthrough last year, with developers finally launching new projects. Banks have loosened their lending procedures somewhat, but maintain a firm hand on the cash tap.

It remains to be seen if acquiring bank financing will

get any easier in the near future, participants at last week’s Shopping Center Forum & Awards in Warsaw concurred.

Need for more financing This year and next, retail space supply in Poland has a chance of considerably exceeding the 2010 level of approximately 500,000 sqm.

As soon as in 2013, the volume of deliveries could possibly reach 1,000,000 sqm, said

Marek Paczuski, an associate director at DTZ Polska.

This, however, will largely depend on banks’ willingness to lend. And banks, Mr Paczuski noted, are greatly preoccupied these days with refinancing loans taken out by developers during the pre-crisis boom.

Financing is now generally available from both domestic and international banks, but the procedures still take longer than they did in better times, Mr Paczuski said. Standard

Logistics services provider JAS-FBG has extended lease agreements with ProLogis. In total, the contracts concern 23,900 sqm of warehouse space at three locations.

JAS-FBG renewed leases for 9,507 sqm at ProLogis Park B´dzin II, 6,313 sqm at ProLogis Park Wroc∏aw, and 6,121 sqm at ProLogis Park Poznaƒ II. The firm signed for a further 1,961 sqm at the B´dzin location. ●

COURTESY OF ADVANCED PUBLISH RELATIONS

JAS-FBG with ProLogis

Wars-Sawa-Junior took home the Grand Prix at the 2011 Shopping Center Awards

FEBRUARY 7-13, 2011

2011 Shopping Center Awards winners and nominees SMALL SHOPPING CENTER CATEGORY

CONCEPT OF THE YEAR CATEGORY

Galeria Rondo, Bochnia Plaza Suwa∏ki, Suwa∏ki Galeria Jastrz´bie, Jastrz´bie

Agora, Bytom Pasa˝ Grodzki, Jelenia Góra Blue Park, PrzemyÊl

LARGE SHOPPING CENTER CATEGORY

GRAND PRIX CATEGORY

Galeria Mazovia, P∏ock Galeria Sanova, PrzemyÊl Galeria Victoria, Wa∏brzych Gemini Park, Tarnów

Wars-Sawa-Junior, Warsaw Molo, Szczecin Promenada, Warsaw

requirements include a relatively high level of commercialization in the project, usually amounting to 50-60 percent.

Meanwhile, the loans eventually granted cover just 60-70 percent of the total development costs.

Banks’ strong negotiating positions often mean that their loan agreements with developers are constructed so that they have a practical influence on how a shopping center is operated, complained Mariusz Kaczmarek, financial director and a member of the management board at Rank Progress.

“Without banks’ consent, it is hard to change leasing conditions or give a tenant a discount,” Mr Kaczmarek said.

The banks’ perspective Speaking from the perspective of the banking sector, Agnieszka Grabowiecka-¸aszek, head

of the sector analysis team in the strategies and analyses department of PKO BP, said that the bank viewed the current situation in the retail property sector as “average” and thus did not see any contraindications to financing.

That’s one place up on its “bad-poor-average-good” scale in comparison to the first half of last year.

So when can shopping center developers expect to see a marked improvement as far as access to bank financing is concerned?

Ms Grabowiecka-¸aszek called for patience, pointing out that the market has just come through a major crisis which was in fact generated by both the property and banking sectors. “Good lending conditions will not return so quickly,” she said.

Adam Zdrodowski

MARKETS

FEBRUARY 7-13, 2011

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

12,063.20 (Feb 3 close)

S&P500

2,755.62 (Feb 3 close)

0.69% (for the week)

FTSE100

1,307.61 (Feb 3 close)

-0.01% (for the week)

DAX

5,979.56 (Feb 3 close)

0.63% (for the week)

0.12% (for the week)

In positive territory

NIKKEI225 7,183.79 (Feb 3 close)

10,431.36 (Feb 3 close)

0.40% (for the week)

-0.45% (for the week)

CHANGE: 4.20%

CHANGE: 2.95%

CHANGE: 3.97%

CHANGE: 1.35%

CHANGE: 3.02%

CHANGE: 0.76%

(year to Feb 3)

(year to Feb 3)

(year to Feb 3)

(year to Feb 3)

(year to Feb 3)

(year to Feb 3)

52-week high: 12,080.54

52-week high: 2,766.17

52-week high: 1,308.60

52-week high: 6,090.50

52-week high: 7,222.13

52-week high: 11,408.20

52-week low: 9,614.32

52-week low: 2,061.14

52-week low: 1,294.82

52-week low: 4,790.00

52-week low: 5,433.02

52-week low: 8,796.45

Tomasz Jerzyk, technical analyst DM BZ WBK SA Polish stocks rose last week, but that conclusion was not foregone at the start of trading on Monday. Investors emptied their portfolios when the US stock market sold off, following weakerthan-expected US GDP data and due to unrest in Northern African countries, especially Egypt. However, bargain hunters entered the market and stocks managed to erase all losses, closing in positive territory.

The blue-chip WIG20 index rose by 1.3 percent on the week, while the overall WIG index gained 1.2 percent. Some more speculative approaches to investment were noticeable, as investors jumped into firms which revealed positive news.

For example, after Petrolinvest said it was

Major indices WIG

47,710.61 (February 3 closure)

WIG20

2,733.73 (February 3 closure)

Change for the week: 0.37%

52-week high: 48,371.02

Change for the week: 0.32%

52-week high: 2,794.58

Change year to February 3: 0.13%

52-week low: 37,322.52

Change year to February 3: -0.76%

52-week low: 2,173.25

2,800

48,500 48,000

2,750

47,500 2,700 47,000

03.02

02.02

01.02

31.01

28.01

27.01

26.01

25.01

24.01

21.01

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

03.02

02.02

01.02

31.01

28.01

27.01

26.01

25.01

24.01

21.01

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

07.01

2,600

07.01

2,650

46,500 46,000

Top 5 Closing PETROLINVEST 7.35 KOV 2.19 GRAJEWO 15.69 RAFAMET 23.00 ACE 11.40

% change (week) 52-week high 41.35 40.00 30.36 2.27 22.58 15.70 22.34 23.00 22.32 12.79

52-week low 5.03 1.47 7.40 16.40 6.60

Top 5 LOTOS PZU PGNIG GETIN BRE

Closing 42.00 357.10 3.73 12.75 312.50

% change (week) 6.92 4.26 3.61 1.67 1.56

52-week high 42.06 417.50 3.91 12.75 312.50

52-week low 25.52 326.00 3.16 8.75 220.10

Bottom 5 POLREST POLLENAE CIECH MEWA ADVADIS

% change (week) -22.22 -18.70 -15.79 -12.90 -12.50

52-week low 0.24 10.52 19.50 0.01 0.21

Bottom 5 POLIMEXMS CYFRPOLSAT TVN PKNORLEN TAURONPE

Closing 3.60 15.60 16.55 46.49 6.16

% change (week) -4.51 -3.11 -2.76 -2.13 -2.07

52-week high 5.29 17.30 19.31 49.00 6.89

52-week low 3.60 13.36 13.50 31.05 5.04

Closing 0.35 10.52 24.00 0.54 0.21

52-week high 1.08 17.30 34.90 0.82 0.46

2,869.68 (February 3 closure)

sWIG80

Z∏oty rides stormy seas

12,675.55 (February 3 closure)

Change for the week: 0.66%

52-week high: 2,870.22

Change for the week: 0.50%

52-week high: 12,700.49

Change year to February 3: 2.21%

52-week low: 2,213.51

Change year to February 3: 3.48%

52-week low: 10,980.45

Adam Narczewski, X-Trade Brokers Dom Maklerski SA Last week was volatile on the currency market. Negative sentiment towards the US dollar meant the EUR/USD reached a three-month high, at $1.3860. The situation turned around on Thursday with the European Central Bank’s decision to keep interest rates unchanged.

The decision was expected, but was nevertheless accompanied by less hawkish statements from the ECB’s president about the direction of euro-zone monetary policy in the near future.

The dollar also regained ground thanks to a betterthan-expected US Institute for Supply Management’s manufacturing index reading, which stood at its highest level since August 2005.

A further decrease of the EUR/USD to $1.3570, however, occurred after news that US unemployment had

13,000

2,900

12,700

2,850

12,400 2,800 12,100 2,750

NewConnect

59.61 (February 3 closure)

WIG-Banki

03.02

02.02

01.02

31.01

28.01

27.01

26.01

25.01

24.01

21.01

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

07.01

11,500

03.02

02.02

01.02

31.01

28.01

27.01

26.01

25.01

24.01

21.01

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

11,800

07.01

2,700

6,864.08 (February 3 closure)

Change for the week: -2.74%

52-week high: 64.04

Change for the week: 0.83%

52-week high: 7,262.73

Change year to February 3: -5.99%

52-week low: 54.64

Change year to February 3: -1.41%

52-week low: 5,440.90

7,100

65.0

7,000

63.5

6,900 62.0 6,800 60.5

SOURCE: WSE

03.02

02.02

01.02

31.01

28.01

27.01

26.01

25.01

24.01

21.01

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

07.01

6,600

03.02

02.02

01.02

31.01

28.01

27.01

26.01

25.01

24.01

21.01

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

6,700

07.01

59.0

close to finding oil in Kazakhstan its stock skyrocketed from z∏.5 do z∏.13 in just two days. It rose by 39 percent on the week, closing at z∏.7.20.

Also, Kulczyk Oil Ventures announced it had found gas zones in its drilling fields in Ukraine. Investors liked the news and its stock went up sharply, gaining 22 percent on the week.

Bank Millennium kicked off Poland’s earnings season with figures bettering market expectations. Its shares benefited from the news and gained more than seven percent on the week.

PGNiG, TP and KGHM were top picks among blue chips. Cyfrowy Polsat lost the most. Its shares lost more than 3.5 percent on the week. ●

Currency report

Other indices mWIG40

19

fallen to nine percent. Much worse-than-expected US Nonfarm Payrolls (NFP) data was also revealed last week (a reading of 36,000 against a forecast 145,000).

Those two labor-market figures come from separate studies, so the question is: which one is correct? It’s difficult to say, but it seems the market was more responsive to the weakness of the euro.

The z∏oty kept gaining against the shaky euro and the EUR/PLN dropped to z∏.3.89. The weakening of the US dollar in the first part of the week caused the USD/PLN to reach a threemonth low, at z∏.2.80, but after the ECB and NFP news, it jumped back to z∏.2.86.

The future of the z∏oty is still bright, but unexpected global factors could cause it to depreciate in the short term. ●

currency rates 3.5090

3.4904

3.4657

3.4813

31.01

01.02

02.02

03.02

3.5128

3.4485 28.01

04.02

04.02

03.02

02.02

01.02

31.01

SOURCE: NBP

0.0974

3.5

3.0

28.01

04.02

03.02

02.02

01.02

31.01

0.08

28.01

PLN-100JPY

4.0

0.0969

0.0974

0.0960

0.0967

0.0960

3.0259

3.0145

3.0188

3.0188

3.0590

3.0138

4.6232 04.02

03.02

02.02

01.02

31.01

PLN-RUB

0.10

2.8

28.01

04.02

03.02

02.02

01.02

31.01

4

28.01

PLN-CHF

3.2

4.6211

4.5749

4.5829

4.5769

4.5257

2.8666

2.8424

2.8230

2.8468

2.8501

3.9075 04.02

03.02

02.02

01.02

31.01

PLN-GBP

5

2.8

28.01

3.8

2.9

2.8845

PLN-USD

3.0

3.9173

3.9019

3.9129

3.9111

4.0

3.9345

PLN-EUR

4.2

20

THE LIST

www.wbj.pl

Book of Lists

FEBRUARY 7-13, 2011

Book of Lists is a comprehensive, detailed and constantly updated guide to more than 2,000 companies operating in the Polish market. Key enterprises are divided by sector into more than 65 ranking lists that include information such as the names of top managers, major clients, activities, the number of employees, completed projects and full contact details. This week’s edition examines tax advisory companies.

For more information about Book of Lists contact Joanna Raszka, tel. 22 639–8567 ext. 119; jraszka@valkea.com

Tax Advisory Companies Rank

Ranked by number of tax advisors (as of September 2010) Company name Address Tel./Fax E-mail Web page

Number of tax Revenue advisors Total from tax September revenue advisory 2010 / 2009 / (z∏. mln) (z∏. mln) 2008 / 2007 2009 / 2008 / 2007

Services offered

Sector specializations

Number of persons Total dealing / with taxes / employees Year Lawyers founded and legal advisors

Ownership: Polish / Foreign

Top local executive / Title

Financial services; energy & utilities; automotive; Tax optimization of income, indirect, employee taxes and social pharmaceuticals; real estate; chemicals, oil & gas; security, transfer pricing, enviromnental taxes; IT-based tax telecoms; media; technologies; transport and logistics; consulting; tax reporting services; tax litigation; mergers and branded consumer products, retail and distribution. acquisitions; international tax planning; tax workshops and Specialized language (national desks) dedicated to seminars; publishing of reports and analysis; Taxonline.pl - an clients from: Germany,teams France, Scandinavia, China, Japan online tax and accounting portal and South Korea

362 9

1,457 1990

WND

WND WND WND

CIT; VAT; PIT; excise; customs; tax proceeding and litigation; transfer pricing; international tax law; tax aspects of mergers and acquisitions; suspended tax; tax risk management; advisory for companies in SEZs; investment grants and incentives; incentives for R&D; IT and technological aspects of Workshop; conferences; tax training; internet publication and gratuitous tax service organizations

Real estate; finance; fuel and energy; mining and metallurgy; automotive; chemicals pharmaceuticals; FMCG and retail; telecoms; IT; technical; transport; forwarding and logistics; specialized language teams (national desks): German, French, Korean, Japanese, Spanish

236 13

Around 1,100 1990

WND

113.0 95.9 80.4

455.0 WND WND

VAT; CIT; PIT; social insurance; mergers and acquisitions; taxpayer defense and financial risk management; bank and financial tax regulations; international tax; transfer pricing; customs and excise; grants and incentives; European Funds; tax and court proceedings

Banking and financial institutions; automotive; building & construction; market for consumer goods; energy; telecoms; pharmaceuticals; chemicals; TSL; public sector

WND 10

WND 1990

WND

Andrzej Âcis∏owski

79 75 80 58

113.5 (1) 108.6 (1) 101.9 (1)

402.0 (1) 423.0 (1) 389.5 (1)

Advisory on: transfer pricing; custom and excise; cargo and service tax; income and international tax; income tax and insurance; tax and litigation; mergers and acquisitions; incentives and grants

IT and new technologies; telecoms; financial solutions; construction and real estate; pharmaceuticals; energy and fuel; FMCG; foreign investments; media; heavy industry; public sector

285 7

1,313 1990

WND

Jacek K´dzior

28 26 26 WND

24.6 23.6 23.0

24.8 24.3 23.7

VAT; CIT; PIT; excise; customs; internetional tax; transfer pricing; tax and court proceedings; social security; tax planning; tax risk management

Real estate; pharmaceuticals; FMCG; finance; media and technologies; automotive; energy

WND 6

62 2004

Tomasz Michalik; Renata D∏uska; Monika M. Dziedzic; Tomasz Olkiewicz; Pawe∏ Mazurkiewicz - WND % None

26 22 22 27

19.1 24.0 11.0

29.5 34.5 21.9

Tax and legal consultation; legal representation; audit and accounting; legislative proceedings; education and publishing

All sectors

70 5

115 1996

Witold Modzelewski; Renata Janiec-Modzelewska; Jerzy Bielawy - WND % None

20 18 15 11

22.0 14.2 11.0

WND WND WND

CIT; PIT; VAT; excise; transfer pricing; international tax; tax and court proceedings; EU consulting; business consulting

Real estate; energy and fuel; FMCG

56 1

65 2005

WND

Roedl, Majchrowicz-Bàczyk Kancelaria Prawna Sp.k.

7 ul. Prosta 51, 00-838 Warsaw 22 696-2800/22 696-2801 Warsaw@roedl.pl, www.roedl.pl

20 18 15 13

10.0 11.8 7.9

17.6 16.7 13.8

Tax assistance; analysis of transformations, mergers, apportionment and liqiudations; assistance on international double-taxation regulations; transfer pricing; tax procedings; consultancy in international matters related with transferred prices (Global Transfer Pricing)

WND

Grupa Gumu∏ka Kancelaria Prawa Finansowego Sp. z o.o.

9 ul. Jana Matejki 4, 40-077 Katowice 32 253-0715/32 201-1765 grupa@gumulka.pl, www.gumulka.pl

18 9 9 8

2.1 1.6 1.2

5.9 5.4 4.3

Tax optimization; transfer pricing; tax audit; mergers and acquisitions; company transformations; legal representation; risk management; services for foreign entities

10

TPA Horwath ul. ˚ydowska 1, 61-761 Poznaƒ 61 851-3860/61 851-3862 office@tpa-horwath.pl, www.tpa-horwath.pl

17 15 13 11

9.3 10.1 8.5

16.7 18.9 12.8

International tax planning; transaction and investment tax service; tax risk managment; tax and court proceedings

11

BDO Sp. z o.o. ul. Post´pu 12, 02-676 Warsaw 22 543-1600/22 543-1601 office@bdo.pl, www.bdo.pl

12 12 10 7

18.7 7.5 8.5

51.6 50.3 45.0

Audit; accounting; tax advisory; mergers and acquisitions; introduction of companies to public trading; business and Investment funds; insurance; chemicals; trade; IT; food; financial advisory; obtaining funding and structural funds; transport; construction; brokerage companies; publishing feedback for lawsuits; IT advisory and audit; risk management; houses; listed firms trainings

Baker & McKenzie Gruszczyƒski i Wspólnicy Kancelaria Prawna Sp.k.

Rondo ONZ 1, 00-124 Warsaw 12 22 445-3100/22 445-3200 warsaw@bakermckenzie.com www.bakermckenzie.pl

10 10 10 12

7.8 9.0 7.9

82.1 77.8 76.7

Indirect taxes (VAT, excise, customs); personal income tax; FMCG; finance; real estate; pharmaceuticals; automotive; corporate income tax; tax planning; tax opimization; mergers, transport and logistics; telecoms and advanced apportionments and liquidations; transfer pricing technologies; energy; technology and media

ECDDP Sp. z o.o. (dawniej Europejskie Centrum Doradztwa i Dokumentacji Podatkowej Sp. z o.o.)

12 ul. Zielony Most 8, 31-351 Kraków 12 622-8600/12 622-8666 ecddp@ecddp.pl, www.ecddp.pl

10 13 11 12

8.0 8.0 8.0

WND WND WND

VAT; revenue tax; tax proceedings; excise; SEZ; tax audit; international tax optimization

12 RSM International - KZWS Spó∏ka Doradztwa

10 8 4 3

3.4 3.0 1.7

5.5 5.2 3.1

Salans D. Oleszczuk Kancelaria Prawnicza Sp.k.

Rondo ONZ 1, 00-124 Warsaw 12 22 242-5252/22 242-5242 warsaw@salans.com www.salans.com

10 9 8 8

4.8 4.4 3.4

9 7 6 5

6.5 6.5 4.9

PricewaterhouseCoopers Sp. z o.o.

Al. Armii Ludowej 14, 00-638 Warsaw 1 22 523-4000/22 523-4040 podatki@pl.pwc.com www.pwc.com/pl

118 108 102 101

115.6 (1) 109,9 (1) 93.2 (1)

399.7 (1) 388.8 (1) 342.4 (1)

Deloitte Doradztwo Podatkowe Sp. z o.o.

Al. Jana Paw∏a II 19, 00-854 Warsaw 2 22 511-0812/22 511-0813 deloittetaxpl@deloittece.com www.deloitte.com/pl/podatki

96 92 88 WND

106.0 97.0 (1) 85.0 (1)

KPMG ul. Ch∏odna 51, 00-867 Warsaw 2 22 528-1100/22 528-1009 kpmg@kpmg.pl www.kpmg.pl

96 85 85 WND

4

Ernst & Young Sp. z o.o.

Rondo ONZ 1, 00-124 Warsaw 22 557-7000/22 557-7001 ernst.young@pl.ey.com, www.ey.com/pl

MDDP Michalik D∏uska Dziedzic i Partnerzy spó∏ka doradztwa podatkowego Sp. z o.o.

5 ul. Ksià˝´ca 4, 00-498 Warsaw 22 322-6888/22 322-6889 biuro@mddp.pl, www.mddp.pl Instytut Studiów Podatkowych Modzelewski i Wspólnicy Sp. z o.o. - Grupa ISP ul. Kaleƒska 8, 04-367 Warsaw 6 22 517-3060/22 870-4178 biuro@isp-modzelewski.pl www.isp-modzelewski.pl

7

Accreo Taxand Sp. z o.o. ul. Grzybowska 5A, 00-132 Warsaw 22 324-5900/22 324-5901 accreo@taxand.pl, www.taxand.pl

Podatkowego SA ul. Stary Rynek 38-39, 61-772 Poznaƒ 61 851-5766/61 851-5786 biuro@rsmi.pl, www.rsmi.pl

16

Grynhoff Woêny Wspólnicy Sp.k. ul. Pi´kna 18, 00-549 Warsaw 22 212-0000/22 212-0001 warszawa@gww.pl, www.gww.pl

Olga Grygier-Siddons President

Piotr ˚arski Managing Partner

Managing Partner

Managing Partner

Tomasz Michalik Partner

Witold Modzelewski President

Jaros∏aw Antosik, Rados∏aw Czarnecki, Micha∏ Gwizda, Andrzej Puncewicz Partners, Board Members

Aneta Majchrowicz Bàczyk

35 14

74 1992

Aneta Majchrowicz - Roedl & Partner Consulting - WND % None

Metallurgy; energy; fuel; mining; construction; TSL; municipal; food industry; R & D

35 5

69 1993

Rados∏aw Gumu∏ka - 99.8% WND

Real estate; construction; energy; municipal services

35 -

106 2005

Wojciech Sztuba - 24.5%; Krzysztof Kaczmarek - 24.5% TPA Horwath Wirtschaftstreuhand und Steuerberatung - 51%

94 3

342 1991

André Helin; Krisof Zorde WND % WND

10 20

Over 140 1992

S∏awomir Boruc; Marcin Gmaj; Jur Gruszczyƒski; Konrad Konarski; Tomasz Krzy˝anowski; Ma∏gorzata Pietrzak-Paciorek; Marek Rosiƒski - WND % None

Logistics; shipping; fuel and energy; finance

WND 2

60 2005

WND

Krzysztof Komorniczak

Tax advisory; transfer pricing; transaction advisory; due diligence; business valuation; financial audit; accounting outsourcing; IAS/IFRS; US GAAP

Real estate; conventional and green energy; IT; trade

30 1

68 1992

WND

Bartosz Mi∏aszewski

91.0 93.4 75.2

Full tax advisory service; tax assistance; transaction advisory; transfer pricing; tax proceedings

Pharmaceuticals; real estate; energy; IT; film; finance and banking

13 66

260 1991

WND Eric Rosedale - WND %

Karina Furga-Dàbrowska; Tomasz Dàbrowski

28.7 37.2 33.0

Complex legal advisory; complicated transaction service (merger, takeover); corporate service; legal consultation for entitles on regulated markets; real estate law and investment process; construction law; intellectual property law

TMT (telecom-media-new technologies); finance; developers sector; TSL (transport, forwarding, logistics); energy and fuel

26 25

91 1996

Stanis∏aw Grynhoff; Piotr Woêny; Andrzej Ladziƒski WND % None

Legal Advisor, General Partner

Rados∏aw Gumu∏ka President

Wojciech Sztuba President

André Helin President

Marcin Gmaj; S∏awomir Boruc Managing Partner; Parter

President

President

Partner; Managing Partner

Stanis∏aw Grynhoff, Piotr Woêny General Partners

THE LIST

Rank

FEBRUARY 7-13, 2011

Company name Address Tel./Fax E-mail Web page

Marciniuk i Wspólnicy Sp. z o.o. Spó∏ka Doradztwa Podatkowego 16 Al. Szucha 13/15, 00-580 Warsaw 22 627-2323/22 627-3033 marciniuk@marciniuk.com, www.marciniuk.com Wardyƒski i Wspólnicy Sp.k.

Al. Ujazdowskie 10, 00-478 Warsaw 16 22 437-8200/22 437-8201

warsaw@wardynski.com.pl www.wardynski.com.pl Andrzej Paczuski, Andrzej Taudul, Piotr Korszla, Maciej Grochulski Doradcy Podatkowi Spó∏ka partnerska 19 ul. Polna 11, 05-075 Warsaw 22 205-2200/22 205-2201 biuro@ptpodatki.pl, www.ptpodatki.pl DLA Piper Wiater Sp.k. ul. Emilii Plater 53, 00-113 Warsaw 20 22 540-7400/22 540-7474

warsaw.recepcion@dlapiper.com www.dlapiper.com Independent Tax Advisers Doradztwo Podatkowe Sp. z o.o.

21 Al. Jana Paw∏a II 15, 00-828 Warsaw 22 697-7288/22 697-7286 biuro@itadp.pl, www.itadp.pl

Number of tax Revenue advisors Total from tax revenue September (z∏. advisory (z∏.

2010 / 2009 / mln) mln) 2008 / 2007 2009 / 2008 / 2007

www.wbj.pl

Services offered

Sector specializations

Number of persons Total dealing with employees / taxes / Year Lawyers founded and legal advisors

Ownership: Polish / Foreign

21

Top local executive / Title

9 11 10 8

WND WND WND

WND WND WND

Tax advisory; due dilligence

Construction; purchase and sale of companies; trade

19 3

22 1997

Janusz Marciniuk; Iwona Marciniuk - 100% None

9 8 6 7

WND WND WND

WND WND WND

Income taxes; indirect taxes (VAT and excise); customs; international tax planning and tax optimization; mergers, acquisitions and restructuring; tax and tax criminal proceedings

Real estate and construction; private equity; finance; individual customers

9 WND

257 1992

WND None

8 6 6 4

4.0 4.0 2.0

4.0 4.0 2.0

Tax advisory; trainings

PIT; CIT; VAT

18 -

16 2006

WND

7 6 -

3.9 WND WND

WND WND WND

Legal and tax advisory

Energy; finance; food; technology

10 17

70 2007

Krzysztof Wiater; Agnieszka Lachman-Filipiak; Krzysztof Kycia; Marcin Matyka; Patryk Laskorzyƒski - WND% DLA Piper LLD - WND%

6 7 5 4

2.3 2.3 1.9

WND WND WND

Tax advisory

Construction; IT; media; FMCG; pharmaceuticals; automotive; alcohols

11 1

12 2004

Joanna Kanicka-Zió∏kowska 49%; Dorota BaczewskaGoliƒska - 26%; Alicja Kadziƒska - 25% None

6 6 NA NA

2.9 NA NA

WND NA NA

Income taxes; transfer pricing; excise; international taxes; tax proceedings; trainings

Leasing; pharmaceuticals; finance; FMCG; telecoms, media and technology; automotive; real estate; restructuring

12 -

14 2008

Piotr Tryba∏a - 50%; Krzysztof Hejduk - 50% None

Krzysztof Hejduk

Anna Strzelecka

Janusz Marciniuk President

Tomasz Wardyƒski, Dariusz Wasylkowski Partner Chairman, Senior Partner

Andrzej Paczuski Partner

Marcin Matyka The Lead Partner of Tax Services Department

Joanna KanickaZió∏kowska President

21

KPT Doradcy Podatkowi Sp. z o.o. ul. Pu∏awska 182, 02-670 Warsaw 22 203-0220/22 203-0221 office@kptpodatki.pl, www.kptpodatki.pl

21

Taxpoint Sp. z o.o. ul. Pràdnicka 4, 30-002 Kraków 12 626-7310/12 383-2393 biuro@taxpoint.pl, www.taxpoint.pl

6 5 7 6

1.4 0.9 0.8

1.9 2.2 0.8

Tax advisory; public goods solicitation; business consulting

Automotive; metals; chemicals; construction; elctronics; trade; energy; developers; FMCG

8 2

11 2007

WND - 100% None

24

AXON TAX Sp. z o.o. ul. Tr´backa 3, 00-074 Warsaw 22 826-8792/22 826-5415 biuro@axontax.pl, www.axontax.pl

5 3 NA NA

WND NA NA

WND NA NA

Tax advisory; acquisition of EU funds

Developers; real estate; finance; transportation; services; processing

9 1

10 2009

Tomasz Janicki - 75% None

Tomasz Janicki, ¸ukasz Blak

Kancelaria Radców Prawnych i Adwokatów Nowakowski i Wspólnicy Sp.k.

24 Pl. Mickiewicza 18, 13-200 Dzia∏dowo 23 697-2546/23 697-2546 dzialdowo@knw.pl, www.knw.pl

5 3 5 4

2.0 3.1 2.0

9.4 13.8 13.0

Tax audits; due diligence; transfer pricing; risk management; tax optimization; expertises, consultations and analysis; tax and court proceeding

Pharmaceuticals; brewing; fuel; transportation; food; construction

8 23

59 1998

WND

Cezary Józef Nowakowski

White & Case W. Dani∏owicz, W. Jurcewicz i Wspólnicy - Kancelaria Prawna Sp.k.

24 ul. Marsza∏kowska 142, 00-061 Warsaw 22 505-0100/22 505-0400 warsaw@whitecase.com, www.whitecase.pl

5 5 6 6

WND WND WND

WND WND WND

Tax advisory: income tax, VAT, PCC, tax and litigation, international tax; tax and court proceedings; customs; excise

All sectors

8 33

138 1991

WND - 100% None

Dewey & LeBoeuf Grzesiak Sp.k. ul. Ksià˝´ca 4, 00-498 Warsaw 22 690-6100/22 690-6222 woffice@dl.com, www.dl.com

4 4 4 3

WND WND WND

WND WND WND

Mergers, acquisitions and IPO; tax and court proceedings

IT; finance; FMCG; real estate

5 28

111 1991

Jaros∏aw Grzesiak; Lejb Fogelman; D&L Services WND % None

PKF Tax Sp. z o.o. (2) 27 ul. Elblàska 15/17, 01-747 Warsaw

4 4 4 2

0.9 0.8 0.6

1.3 17.7 15.6

Tax advisory; advisoty for activities in the SEZ; tax audits; due diligence; transfer pricing; tax optimization; tax proceedings

Real estate; pharmaceuticals; IT; telecoms; publishing; production and trade

8 -

8 1993

PKF Consult - 100% None

Forystek & Partnerzy Adwokaci i Radcowie Prawni 29 ul. Armii Krajowej 16, 30-150 Kraków 12 622-4511/12 622-4510 kancelaria@forystek.pl, www.forystek.pl

3 2 2 2

0.7 0.5 0.7

4.0 4.8 5.5

Tax optimization

Mergers and acquisitions; real estate; excise

14 14

35 1997

Józef Forystek; Marek Forystek; ¸ukasz Wo∏k; Marek Na∏´cz - WND % None

Tokarczuk, J´drzejczyk i Wspólnicy Kancelaria Prawna GLN Sp.k.

3 4 4 4

WND WND WND

WND WND WND

VAT; CIT; PIT; tax planning; international tax optimalization; transfer pricing; tax audits; tax and court proceedings; prepration of internal tax procedures; tax risk analysis

Food; cosmetics; chemicals; finance; automotive; transport; infrastructure; energy; real estate

5 20

80 1990

Dariusz Tokarczuk; Robert J´drzejczyk - WND % WND

Chadbourne & Parke LLP, Radzikowski, Szubielska i Wspólnicy Sp.k. ul. Emilii Plater 53, 00-113 Warsaw 31 22 520-5000/22 520-5001 warsaw@chadbourne.com www.chadbourne.com

2 2 2 3

WND WND WND

WND WND WND

Inspections, tax and court proceedings; execution proceedings; consulting in tax, financial and corporate structure creation in mergers, acquisitions, real estate tranactions and restructuring; tax advisory (CIT, PIT, VAT; excise) and customs

Construction; real estate; pharmaceuticals; food; mining industry; energy; telecoms; computers and IT; tobacco and spirits; banking; finance and insurance institutions

4 27

WND 1990

WND

POLFINANS Sp. z o.o. Spó∏ka Doradztwa Podatkowego 31 ul. Wàchocka 1S, 03-934 Warsaw 22 590-6400/22 833-2888 office@polfinans.pl, www.polfinans.pl

2 2 2 2

0.8 0.8 0.3

1.8 1.9 1.7

Tax advisory; accounting; HR and payroll

WND

3 1

18 1991

Janusz Tabor - 66%; Maciej Machocki - 21%; Krzysztof Woêniak - 13% None

WND WND WND WND

WND WND WND

41.0 40.0 WND

Tax advisory; transfer pricing

WND

WND WND

160 1992

WND

WND 2 NA NA

0.5 NA NA

0.5 NA NA

Transfer pricing; advisory for investors in SEZ

2 1

5 1

Jaros∏aw F. Mika - WND % None

27

22 560-7650/22 560-7663 podatki@pkftax.pl, www.pkftax.pl

29 Pl. Pi∏sudskiego 1, 00-078 Warsaw

22 344-0000/22 344-0001 gln.warsaw@gide.com, www.gide.com

Mazars w Polsce (3) NR ul. Pi´kna 18, 00-549 Warsaw 22 255-5200/22 255-5299 main@mazars.pl, www.mazars.pl

NR

Taxperience Sp. z o.o. ul. Post´pu 15C, 02-676 Warsaw 22 381-6178/22 381-6001 biuro@taxperience.pl, www.taxperience.pl

Notes: Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for The List was done in October 2010. Number of employees and ownership structure are as of September 2010. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Footnotes: (1) Financial year: July 1 - June 30; (2) Since Jan 1 2009 PKF Tax Sp. z o.o. is a separate company detached from PKF Consult Sp. z o.o.; (3) Group of Mazars & Guérard Audyt Sp. z o.o. and Mazars & Guérard Polska Sp. z o.o.

WND

President

Board Member

Partners

Partner

Witold Dani∏owicz, Janusz Fiszer Partners

Jaros∏aw Grzesiak Managing Partner

Agnieszka Chamera President

Marek Forystek Managing Partner

Dariusz Tokarczuk Managing Partner

W∏odzimierz Radzikowski Managing Partner

Janusz Tabor President

Micha∏ Kiviatkowski; Krystyna Stefanowska Managing Partner; Tax Advisory Department Director

WND

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2010, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

22

ENTERTAINMENT

www.wbj.pl

Cultural exhibition

FEBRUARY 7-13, 2011

Opera

History’s costumes Opera and identity COURTESY OF EDWARD KOPROWSKI

A new exhibition dedicated to folk costumes spanning the 19th and early 20th centuries has opened in Warsaw’s State Ethnographic Museum. Here the dress comes within a colorful chronology of forms, styles and fabrics, reflective of the time period and purpose – many were worn for ceremonial occasions, such as local

religious festivals. There are 40 complete costumes to be viewed in all, from 27 different regions of Poland, all

produced by local experts.

Adding historic context to the exhibition is a specialist weaving display. ●

Art Installation

Fragments of film

In this first retrospective of the work of Miros∏aw Ba∏ka, a well-known painter and sculptor, the artist has pared down his materials to emphasize one element in particular: video installation. Selecting his most important video works from over twelve years

COURTESY OF BARBARA GLADSTONE

Fragment Miros∏aw Ba∏ka Centre for Contemporary Art through April 3

of recording, Ba∏ka’s choice includes the haunting image of deer in present-day Birke-

nau, set to parallel with Disney’s original war-time release of “Bambi.” ●

Get an Insider’s glimpse at all that Warsaw has to offer with the Warsaw Insider!

Director Micha∏ Zadara, the wunderkind of Polish theater, enters the world of opera for the first time with his take on this libretto by Iannis Xenakis. Originally inspired by the text of “Aeschylus,” the work uses elements of contemporary classical music and ancient Greek tragedy. Under Zadara’s direction the story is switched from the beginnings of Greek democracy to the emergence of the postwar People’s Republic of Poland – the theme, however, remains much the same; about a nation and people searching for political identity in the aftermath of war. ●

COURTESY OF KRZYSZTOF BIELINSKI

Oresteia The Polish National Opera at Teatr Wielki February 8, 10, 8 pm February 19, 20, 4 pm

“Folk Costumes in Poland” State Ethnographic Museum

Content provided by the Warsaw Insider. For more information on culture and entertainment in Warsaw this month, pick up the February issue.

Concert

From Brno with love Lettere Amorose Magdalena Kožená with Private Musicke Warsaw Philharmonic February 11, 7:30 pm The Brno-born mezzo-soprano Magdalena Kožená gained international notoriety in 1995 after her success in the 6th International Mozart Compe-

tition in Salzburg. Initially, she was seen as a specialist in Mozart and the music of the Czech Republic, but soon it became obvious that her extremely versatile talent allowed her a wide-ranging repertoire. She has since found great success in Baroque music – especially in the great soprano roles in

operas and oratorios.

In Warsaw, she will perform a set of 17th-century monodies on the subject of love. Their subtle strains will be made all the more powerful by the strings of Austria’s Private Musicke, in a performance rarely seen on the Polish stage.

AK

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com

Warsaw’s most popular Englishllanguage lifestyle lif t l magazine i ffeatures: t : • top shopping reviews and listings • monthly calendar of parties, eventss and exhibitions • latest art, design, fashion and beauty trends • hotel, spa and fitness club reviews • up-to-the-minute resto, bar, cafe and club reviews

Subscribe to the Insider! Contact t t kwilinski@valkea.com k ili ki lk

Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl

Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul.

Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl

State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl

Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl

Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl

Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl

LAST WORD

FEBRUARY 7-13, 2011

www.wbj.pl

23

Tech Eye

OF CO UR TE SY

lesson – we need to respect our better half a little more and think about her needs.

In hindsight, the fight probably even saved us from a divorce. Our original Valentine’s Day present was a trip for two to Japan, where we planned to eat crazy food from vending machines, dress up like a video game character and go dancing, then steal HRP-4C, a fancy robot created by the Japanese National Institute of Advanced Industrial Science and Technology.

This fembot isn’t commercially available yet, but her creators have been working ceaselessly to upgrade her over the past few years. It cost about $2 million to build the prototype, but her eventual retail price should be well under $500,000 (z∏.1,433,305).

HRP-4C sings, dances robotically and has freakishly giant hands, everything Techeye wanted in a woman before we met our wife. We figured she’d be fun to have around the house, a kind of singing coat rack.

On the other hand, HRP-4C is downright creepy to look at and sings like a narwhal in breeding season. So we decided to stay home with the wife and some beer (in plastic cups) this Valentine’s Day. ●

COURTESY OF OPENPANDORA

“You ruined our love, you horrible man-pig.”

That’s the reception Techeye got last Thursday evening, returning home after a long day spent pretending to work.

All we wanted was a beer, our favorite sweatpants and the chance to watch some violent Japanese cartoons.

It was not to be. Our awfully wedded Wench had just read some nonsense article about Valentine’s Day and true love. Foolishly, she then compared the unattainValentine’s card will suffice. able ideal presented in that article to her Techeye has own domestic situation – laundry, child vomit, more laundry and a husband also cunningly decided to buy ourself a who has more in common with Quasi- Pandora handheld device ($350, z∏.1,005). How will that re-ignite the modo than with Romeo.

And so began a long night of wrath, marital romance, you ask? We’ll get to recriminations and tears. Techeye tried to that in a moment. maintain a state of transcendental calm, but around 2 am the wife hurled a whole six-pack at our head and we broke down, weeping 72 fluid ounces worth of tears. At 4:37 am we conceded defeat, swearing to do everything possible to rekindle the lost flames of romance in our marriage. And at 4:39 am we suffered a savage cut while trying to lap up the COURTESY OF THE JAPANESE NATIONAL INSTITUTE OF ADVANCED INDUSTRIAL SCIENCE AND TECHNOLOGY last puddle of beer on our living room floor.

You see, the Pandora is a unique Since the “Night of Much Tongue open-source effort which runs a special Lashing,” as it has since come to be version of Linux. It’s an ambitious cross known, we’ve taken purposeful steps to between a PC and a gaming console save our marriage. For example, we’ve boasting a battery life of over 10 hours learned to make giant origami cranes and an LCD screen which its maker, with donuts hidden inside them. We’ve OpenPandora, optimistically describes as also spent hours studying the greatest “impressive.” As for games, the company love songs of all time, such as Captain & cites a number of older titles, but swears Tennille’s “Muskrat Love” and Meat- that more modern games are on the way. loaf’s “I’d Do Anything for Love (But I Most importantly, the Pandora is ugly.

Won’t Do That).” And, with Valentine’s No offense, OpenPandora, it’s a fact. But Day just around the corner, we’ve got a this lack of modern aesthetic is precisely couple of romantic gadgets up our sleeve why Techeye wants one. Putting the Panto show our beloved ogress just how dora on a table next to the NGP will much we love her. make the latter look very attractive – and much svelter – by comparison.

His and her gaming That, we’re Nothing says love like a shiny new handwill held gaming device, and that’s where praying, our Sony’s next-gen portable comes in. please Codenamed NGP, this just-unveiled Wench on some gadget is purportedly almost as powerful deep psychologias a PlayStation 3, meaning it puts a lot cal level. If it doesn’t, we’ll at of oomph in your back pocket.

The NGP has a bevy of fancy fea- least have sometures, like a five-inch touchscreen, WiFi- thing to play with and 3G-capability, a rear-mounted in our tent on the touchpad, front- and back-facing cam- balcony. eras, and GPS. You know, just in case you get lost while trying to manipulate We, robot the touchscreen and touchpad at the Despite the tragic same time. waste of beer The only downside is that the NGP involved, the row won’t be available until Q4, but we’re over romance hoping a picture of it and an IOU in a taught us a valuable

SO N Y

Romance 2.0

Ever sought romantic inspiration from Meatloaf? Let us know: techeye@wbj.pl

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