WBJ #6 2011

Bank Millennium isn't officially on sale (yet), but buyers are already lining up

Polish F1 driver Robert Kubica faces a year of recovery after a major crash

Techeye makes the best of it with dicycles, dual-screen phones and Big Ass Fans

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23

WWW.WBJ.PL

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VOLUME 17, NUMBER 6 • FEBRUARY 14-20, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

Since 1994 . Poland’s only business weekly in English

The z∏oty’s muscle COURTESY OF MYSQUARE

Lokale Immobilia

• Miasteczko Ursus • Rondo 1's certificate • Naruszewicza contractor 15-17

Invested in good relations South Korea's ambassador to Poland, Joon Jae Lee, talks political, trade and cultural ties 9

Moving and relocation companies 21

In this issue The Polish currency is expected to remain strong this year, but external factors remain a worry

SHUTTERSTOCK/¸UKASZ MAZUREK/WBJ

News . . . . . . . . . . . . . . . . . . . . . . .2-3 Politics . . . . . . . . . . . . . . . . . . . . . . .4 Banks in Focus . . . . . . . . . . . . . . . . .5 Industry News . . . . . . . . . . . . . . .6-7 Interview . . . . . . . . . . . . . . . . . . . . . .9 Business Environment . . . . . . . . .10 Opinion . . . . . . . . . . . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . . .15-17 Listed Firms . . . . . . . . . . . . . . .18-19 Markets . . . . . . . . . . . . . . . . . . . . . .20 The List . . . . . . . . . . . . . . . . . . . . . .21 Arts & Culture . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

12-13

Weimar reborn

Egyptian caller?

A summit in Warsaw last week revived the Weimar Triangle and set the stage for some weighty politicking. Or did it?

3,11

The list of potential bidders for mobile telecom Polkomtel is growing fast – Egypt's Orascom is the latest name being whispered

A GUIDE TO POLISH EXPORT will hit shelves in March 2011!

For advertising and promotion opportunities contact: Agnieszka Brejwo: abrejwo@wbj.pl; (+48) 639-85-68, ext. 226

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NEWS

www.wbj.pl

WSE watching bourse tie-ups closely

Exports surge Polish exports amounted to €117.4 billion in 2010, a rise of 19.5% on the previous year, Poland’s statistics office reported.

Imports amounted to €130.9 billion, rising 21.7% y/y. That means Poland saw a trade deficit of €13.5 billion.

Among the 10 main destinations for Polish exports, the biggest increases were seen in Slovakia and Russia (both countries saw growth slightly higher than 40%). Germany remains Poland’s largest trading partner, with Poland enjoying a trade surplus of more than €2 billion.

Janusz Lewandowski

IN THE SPOTLIGHT

Numbers in the News

62% is the percentage of Poles that gave money to charity at least once in 2010

€117.4 billion

was the value of Polish exports in 2010, up 19.5% y/y

€130.9 billion

is how much imports amounted to in 2010, up 21.7% y/y COURTESY OF FLICKR/JANUSZ LEWANDOWSKI

The future regional market position of the Warsaw Stock Exchange is hanging in the balance.

Analysts say the WSE will be watching the planned merger of Deutsche Boerse and NYSE Euronext (a key WSE partner) very closely.

Officials will be looking to see what transaction system would be preferred by the new transatlantic operator that could be formed from the merger of the two giants. Deutsche Boerse currently uses the Xetra platform, which is also the flagship system used by the WSE, as well as stock exchanges in Vienna, Prague, Budapest, Ljubljana and Sofia. NYSE Euronext runs its exchange on the UTP system.

FEBRUARY 14-20, 2011

Quote of the Week “We can forget about gay men, but I would gladly watch lesbians” Civic Platform backbencher Robert W´grzyn, an MP from Opolskie voivodship, gives TVN24 his opinion on the legalization of same-sex marriage

When Janusz Lewandowski was chosen to head the European Union’s DirectorateGeneral for Budget, the news was well received in Poland.

The budget portfolio is less powerful than, say, the internal market or competition posts, but given the imminent negotiations for the EU’s 2014-2020 budget, the installation of a Pole in the position was seen as recognition of Poland’s growing influence.

That minor victory was called into question last week when daily Rzeczpospolita published part of a letter purportedly sent to European Commission Secretary-General Catherine Day by EC President José Manuel Barroso’s office. The contents of the letter suggest that Mr Lewandowski will have less involvement in drafting the 2014-2020 budget than his portfolio would suggest, and will instead work as part of a team under the EC president.

Mr Lewandowski quickly denied Rzeczpospolita’s version of events, however.

“Regarding my role, the level of freedom and independence in shaping the vision of European finances after 2013 exceed my expectations,” he told Wprost. He also described the Rzeczpospolita article as “unfortunate” and “highly untrue.”

Regardless, the contention that the budget commissioner could be sidelined makes some sense given the sensitive negotiations surrounding the drafting of the 2014-2020 budget. Countries such as France, Germany and the UK are reticent to continue the generous funding received by the new member states and are looking for ways to curb spending.

Thus, even if he has a strong hand in shaping the budget, the EC’s budget commissioner may be constrained in how he allocates funds.

Janusz Lewandowski was born on June 13, 1951, in Lublin, Lubelskie voivodship.

He attended the University of Gdaƒsk, earning a master’s degree and teaching at the university until earning a doctorate.

In the 1980s, he was associated with the SolidarnoÊç labor movement and in 1990 he formed a short-lived party called the Liberal-Democratic Congress together with Donald Tusk and Jan Krzysztof Bielecki.

Mr Lewandowski had a stint as privatization minister in 1991 and, serving in that function, was a co-signator of the April 1991 act establishing the Warsaw Stock Exchange. He later served again as an MP and was a member of the European Parliament between 2004 and 2010, losing the post when he assumed the office of budget commissioner last February.

“You’d have to be a total f@#%ing cretin [to say that]. And, worse, the twit was laughing” Leszek Korzeniowski, head of Civic Platform’s Opolskie branch, gives his opinion on Robert W´grzyn

Figures in focus Going viral Internet security and use of IT security in selected EU countries (in the past 12 months*, % of respondents) Caught a virus or other computer infection

Use of any kind of IT security

100

80

60

40

20

%

Estonia

Bulgaria

Poland

EU27

Hungary

Austria

Germany Netherlands

*Survey done in Q2 2010; responses concern previous 12 months

E Blake Berry

On WBJ.pl

Source: Eurostat

Company index Advadis ......................................20 Exim Tours ..................................9 Orascom Telecom ........................6 Allied Irish Bank ..........................5 Farutex ......................................17 Orbis Travel ................................18

Book on Holocaust stirs controversy A month before its publication in Poland, the book Golden Harvest is causing a stir. The main thesis of PolishAmerican historian Jan Gross’s new book is that ordinary Poles actively profited from Jewish suffering during the Holocaust. Mr Gross, a history professor at Princeton University, told the Associated Press that he wished to tell the story of the war as it happened.

“Alongside the heroism there was also malfeasance, and one finds that these stories run in parallel.” ●

AmerBrokers..............................18 Genfer ........................................17 Orlen ..........................................19

Eros in Warsaw This Valentine’s Day, WBJ.pl takes you on a tour of the capital’s newest museum, the Erotic Museum in Warsaw. The adventurous can log on to see a slide show of some of the museum’s curious collection of 2,000 erotic objects.

APA Hubka ................................17 Genworth Financial....................10 PBG ............................................20 Apax Partners ..............................6 Getin Noble Bank ................16, 20 PGE ..............................................6 Asseco Poland............................20 Globe Trade Centre....................20 PKN Orlen ..............................6, 20 Banco Santander ........................5 Goldman Sachs..........................18 PKO BP ........................................5 Bank BPS ..................................16 Goodman ....................................17 Polenergia ..................................15 Bank Gospodarstwa Krajowego ..13 Grupa Lotos ..............................20 Polish Airports State Enterprise ....6 Bank Millennium....................5, 10 Hochtief ......................................15 Polkomtel ....................................6 Bank Pekao..................................5 ING..............................................18 Pollena-Ewa ..............................20 Bank Zachodni WBK ..5, 10, 12, 20 Intesa............................................5 Polskie Górnictwo Naftowe i Belgravia Polska ........................17 Intrall Rus ....................................7 Gazownictwo ..............................20 Blacksheep ................................17 Irena ..........................................20 Praktycy.com................................6

DATELINE

BPG Motor..................................23 Kaniewski ¸uszczyƒski Architekci ..16 SB Granit......................................3

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

MEBLE POLSKA Furniture Fair. Poznan International Fair. meble.mtp.pl/en

TOURISM FAIR

Event:

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

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

MARCH 1 CEEQA GALA & AWARDS Event:

8th Annual CEEQA Gala. Annual industry

Raiffeisen Bank............................5

Bomi ..........................................18 Jones Lang LaSalle ..................16 Renault ........................................3

FEBRUARY 15-18 FURNITURE FAIR

18

BNP Paribas ................................5 John Paul II International

Bogdanka ..................................18 Airport Kraków-Balice ................6 Rainbow Tours ..........................18

February/March Event:

Blackstone Group ........................6 Irlandzka Grupa Inwestycjna ....17 PTI ..............................................20

BRE Bank ..............................5, 20 Karmar ......................................16 Societe Generale........................18 British Polish

KGHM ..........................................6 Sto∏eczne Przedsi´biorstwo

Chamber of Commerce ............12 Knight Frank ..............................17 Energetyki Cieplnej....................15 Bytom ........................................20 Kredyt Bank ................................5 Sto∏eczne Przedsi´biorstwo Celtic Property Development ....15 Kulczyk Oil Ventures ............19, 20 Energetyki Cieplnej (SPEC) ........7 Citi Handlowy ........................5, 18 LG Electronics..............................9 Szaroszyk & Rycerski Architekci ....16 Clean & Carbon Energy ............20 London Stock Exchange ..............5 Techmex ....................................20 Commerzbank ............................5 Merlin ..........................................6 TeliaSonera ..................................6

1-5

CEBIT 2011

Credit Suisse ..............................18 MGPA Europe Fund II ................15 Tesco ..........................................17

Event:

CeBIT 2011. Poland will be an official partner of the event in 2012. Location: Hannover, Germany. www.cebit.de/home

CVC Capital Partners ..................6 Millennium Banco

TNS OBOP ....................................4

Cyfrowy Polsat ..........................20 Comercial Portugues ..................5 TPG ..............................................6 Deutsche Bank ..........................18 Mitsubishi Motors Poland ..........7 TVP ..............................................3 Deutsche Bank Securities ..........5 Modzelewski & Rodek ..............15 UBS ............................................18 Deutsche Boerse ........................2 NDI ..............................................3 UniCredit ....................................18

3

ACCESS MBA TOUR

DM BZ WBK ................................6 NFI Empik Media & Fashion ......6 Waimea Holdings Limited ........16

Event:

Access MBA Tour in Warsaw. Location: Mamaison Hotel Le Regina, Warsaw. www.accessmba.com

DM PKO ......................................19 Nomura ......................................19 Warner Turbo Systems Poland 15 Dolcan ........................................15 NYSE Euronext ............................2 Wasko ........................................20 Echo Investment ........................15 Oasis Tours ..................................9 WSE ..............................................2 Emerson Process Management ....17 Olympus ....................................23 X-Trade Brokers ........................12 Energa ..........................................7 Optimus ......................................20 ZPC Ursus ..................................15

NEWS

FEBRUARY 14-20, 2011

www.wbj.pl

3

The Weimar Triangle

Three’s company, again ceive the country as a more serious partner which plays a significant role in the European Union.

The leaders of Germany, France and Poland discussed some weighty issues in Warsaw last week

COURTESY OF THE CHANCELLERY OF THE PRESIDENT

The heads of Poland, France and Germany gathered in Warsaw last week under the aegis of the Weimar Triangle grouping. They discussed European defense partnership, social and cultural policy, Poland’s forthcoming presidency of the EU and the response to the financial crisis in Europe.

Mr Sarkozy and Ms Merkel expressed their strong support for one of Poland’s priorities during the EU Presidency – namely, making progress on a common European security and defense policy. The German chancellor said Poland would receive support from Germany during its tenure at the helm of the EU, which begins in July.

When asked about inviting Russian President Dmitry Medvedev to the next Weimar Triangle meeting, Polish President Bronis∏aw Komorowski said that “it would be highly recommended.” Mr Sarkozy approved of Poland’s attitude towards Russia, describing it as “intelligent and courageous.”

The heads of state also discussed plans for the common training of diplomats and cooperation between their countries’ science institutes and television broadcasters.

The potential for partnership between Poland’s state-owned TVP and the French-German ARTE network is being given careful consideration.

Reviving good relations

It takes three to tango A divisive pact The agenda item which earned the most press in Poland was an invitation extended by French President Nicolas Sarkozy and German Chancellor Angela Merkel for Poland to join an EU Pact for Competitiveness.

Ms Merkel stirred a hornet’s nest earlier this month by proposing the pact during a European summit. Paris and Berlin want countries entering into the pact to have debt level limits written into law, to increase retirement ages, to end inflation-indexed wages

“Mr Sarkozy described Poland’s attitude towards Russia as ‘intelligent and courageous’” and to introduce a minimum corporate tax rate.

According to Marcin Menkes of the Polish Institute of International Affairs, the Pact for Competitiveness is consistent with Franco-German aspirations to coordinate and integrate economic governance in the European Union.

According to the two countries, this strategy would make the EU a consolidated unit, strong and competitive in the global perspective. They say it would also protect the community from financial crises.

Asked about the controversy which followed the initial presentation of the pact, Mr

Menkes acknowledged that it could cause considerable changes in some countries. For example, establishing a minimum corporate income tax (CIT) would probably force Poland and Ireland to raise their own CIT rates, which currently amount to 19 and 12.5 percent, respectively. By comparison, CIT amounts to 33.33 percent in France and 29.83 percent in Germany.

In Mr Menkes’ opinion, the invitation for Poland to join the Pact for Competitiveness may mean that France and Germany have started to per-

The last summit, scheduled in 2006, was canceled when then-President Lech Kaczyƒski declined to attend, citing health reasons. There were suspicions at the time, however, that the move was a reaction to an article in the German daily Die Tageszeitung which lampooned the president.

Last week’s meeting was therefore described in the Polish press as a “revival” of the Wiemar Triangle. Mr Menkes described the “revival” as Poland showing a strong will to strengthen ties with its stronger European peers, while also maintaining good relations with countries which don’t belong to the euro zone.

Other observers have noted that France and Germany share responsibility for the Weimar Triangle’s five years of dormancy. The countries were none too eager to press for more tri-lateral cooperation.

The countries’ relations also came under strain in 2003, when Poland supported the US War in Iraq. Other points of contention have included the Nord Stream gas pipeline project, which bypasses Poland, and relations with Russia.

Despite the disagreements, Mr Komorowski has expressed his desire to continue strengthening the partnership between the three European countries.

Katarzyna Piasecka

Racing

Highway builders Injury takes Kubica out of F1 season want out of A4 deal The Renault driver is out of intensive care, but faces a long road to recovery

Mr Kubica’s co-driver, Jakub Gerber, suffered only minor injuries in the crash.

So serious were Kubica’s injuries that it was initially feared his hand might require amputation. But after emergency surgery had been completed his surgeon was more

optimistic that the hand could be saved.

“The operation went well,” surgeon Mario Igor Rossello said at the time. “He should recuperate fairly quickly and have full use of his hand within a year.”

Kubica was released from

COURTESY OF WWW.KUBICA.PL

All eyes were on Polish Formula One driver Robert Kubica last week as doctors battled to save his hand following a horrific rally car accident in Italy.

Mr Kubica, who drives for Renault, sustained several severe injuries when his car crashed into a metal barrier during the Ronde di Andora rally.

He suffered multiple fractures to his right leg and arm before being airlifted to Santa Corona hospital in Pietra Ligure, where he was put into an induced coma and underwent over seven hours of surgery.

Robert Kubica is a national hero in Poland

the intensive care unit at the Italian hospital last Thursday and transferred to its accident and emergency unit. He underwent a further operation last Friday and, as WBJ went to press, was due for surgery on his upper arm and foot.

The Pole, who was well enough to speak to the press by the end of last week, told Gazzetta dello Sport, as reported by the UK’s Telegraph, ‘’I want to return this year,” adding that, “I am really determined to reduce the recovery time with a very defined program.’’

Mr Kubica is expected to be out of action for between six months and a year. Gareth Price

The consortium comprising Poland’s NDI and Macedonian firm SB Granit has informed the General Directorate for National Roads and Motorways (GDDKiA) that it intends to cease work on a 21-km section of the A4 highway. The stretch of road in question is located in Ma∏opolskie voivodship.

Pawe∏ Mazur, a spokesperson for NDI, told WBJ that the decision stemmed from a conflict with GDDKiA. According to him, GDDKiA hadn’t held up its end regarding financial commitments made to the consortium.

Marcin Hadaj, a spokesperson for GDDKiA, confirmed that his organization had received a letter in which the consortium revealed its plans to withdraw from the agreement.

In the document, the contractor has demanded com-

pensation of z∏.58 million. It says this figure accounts for 10 percent of the total price of the undertaking and compensation for work already performed by the consortium.

The parties now have less than two weeks to reach an agreement. If they fail to do so, GDDKiA will hold a tender to find a contractor to complete the work. The case may end up in court as well, since GDDKiA could demand over z∏.100 million in compensation for what could be a sixmonth delay in construction, Rzeczpospolita reports.

The completion of the 21km fragment of A4 highway was initially scheduled for spring 2012. Any delay in construction will mean it will not be ready in time for the Euro 2012 soccer championship.

Katarzyna Piasecka

4

POLITICS

www.wbj.pl

FEBRUARY 14-20, 2011

Politics

Internal conflict and an aggressive opposition are taking a toll on the prime minister’s party

Meanwhile, its main rival, Law and Justice (PiS), has made small but steady gains in recent months. According to TNS OBOP figures, it gained two percentage points between January and February, arriving at 26 percent support.

The last few weeks have not been easy for Prime Minister Donald Tusk and his ruling Civic Platform (PO) party. Support for the party dropped by 13 percentage points between early January and early February, according to the latest TNS OBOP poll.

That marks a three percentage point improvement on late January figures, but a poor result compared to the party’s 2010 poll numbers.

In search of support The figures are certainly disquieting for Civic Platform, but are they a sign that Poland’s dominant party is really losing the backing of voters?

If history is any judge, yes.

PO traditionally fares better in polls than at the ballot box, while the opposite is true for its main rival, PiS. Sinking poll numbers mean PO’s popularity

Unstable platform Poll numbers for early January and February

Breeding discontent

60 Jan 7-10

Feb 3-6

50 40 30 20 10 %

PO

PiS

SLD

PSL

is really taking a nose dive.

Meanwhile, smaller parties have made gains – the Democratic Left Alliance (SLD) registered 13 percent support in the poll, the Polish People’s Party (PSL) had seven percent and the recently created Poland Comes First (PJN) had six percent (the threshold to enter parliament is five percent). The latter two parties are definitely polling better than they have in recent months.

However, none of these entities are a natural fit for Civic Platform’s young, urban, educated electorate. So where has its support gone? There’s speculation that some former supporters of SLD who turned to PO in the last few elections have now returned to the leftist party.

PJN

Source: TNS OBOP, Gazeta Wyborcza, PAP

There appear to be several sources of voter frustration with PO. Internal conflict – namely a rift between Prime Minister Tusk and Sejm Speaker Grzegorz Schetyna – is one problem, but this is also tied to public bickering over the controversial Russian report on last year’s air tragedy in Smolensk.

“The [PM’s] reaction to the MAK report was slow ... that was a mistake,” said Mr Schetyna in January, eliciting unin-

COURTESY OF KPRM

That sinking feeling

The past few weeks have been tough for Prime Minister Donald Tusk and his party tended support from PiS leader Jaros∏aw Kaczyƒski.

At a February 2 meeting of PO’s executive council, Mr Schetyna was reportedly scolded for his remarks by Mr Tusk and others on the council. The PM told reporters afterward that there had been “a frank discussion.”

“Platform will not tolerate Êa situation in which elementary solidarity within the party is not abided. No one can have any doubts now about how to behave, especially when very important debates are ongoing

such as the one concerning Smolensk,” Mr Tusk stated.

According to Wawrzyniec Konarski, a political expert at the Warsaw School of Social Sciences and Humanities, internal conflict is certainly among the issues affecting Civic Platform’s poll numbers.

“PO is a typical cartel party with no ideology holding together its members, but a lot of individual competition for power and influence among them,” he said, agreeing with those who say the PM is showing signs of strain

these days.

Mr Konarski commented that the PM had been very resistant to stress in the past three years, especially considering constant attacks from the right, but that it might be getting difficult for him to maintain his cool.

“However, it is in the interest of all in the party that he remains as the leader, because he is the only one popular enough among the public to lead PO to election victory,” said Mr Konarski.

Remi Adekoya

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BANKS IN FOCUS

M&A

COURTESY OF BANK PEKAO

Several banks say they would be interested if Millennium were put on the block Will Portugal’s Millennium Banco Comercial Portugues sell its controlling stake in Poland’s sixth-largest lender, Bank Millennium? So far the bank is keeping mum, but that hasn’t kept a number of banking bosses from voicing interest in the asset.

“Market sources” told Reuters last week that the bank is thinking about selling its Polish unit. The bank recently sold assets in Turkey and the US, and if it were required by the Portuguese regulator to raise capital quickly, it could be driven to sell Bank Millennium, experts say.

If it is eventually put up for sale, Poland’s second-largest

lender, Bank Pekao, will consider making a bid, chief executive Alicja Kornasiewicz told Radio PiN last week.

Zbigniew Jagie∏∏o, the chairman of Poland’s largest bank, PKO BP, has also expressed interest in the transaction, albeit obliquely. “We will thoroughly analyze every potential acquisition that might lead to the increase of our assets and provide a boost to PKO BP’s standing,” he told Rzeczpospolita.

During the tumult of the last few years, Poland’s banks proved surprisingly stable, raising their stock in the eyes of potential buyers.

“If Millennium goes up for sale, I would expect it could attract a decent price,” Deutsche Bank Securities analyst Marcin Jab∏czyƒski said.

He explained that Raiffeisen Bank’s recent purchase

of a 70 percent stake in Polbank had attracted a high price and lots of attention during the bidding stage. “[Millennium’s] asset quality is superior.”

French BNP Paribas and Italian Intesa, both of which recently tried to enter the Polish market, have both been touted by analysts as possible bidders. But the bank would likely be most valuable to a fellow Polish lender, experts say.

“Millennium would have a greater value for a Polish bank because of the cost synergies it would create,” Mr Jab∏czyƒski said. He added that Millennium would be most interesting to a mid-sized bank – one which would increase its market share to 10-12 percent if it combined with Millennium.

Natalia Kazik, Gareth Price

Banking results

BRE’s net profit beats forecasts A drop in loan loss provisions and income growth helped the bank to earn a strong profit Poland’s BRE Bank, a unit of Germany’s Commerzbank, revealed last week that it had made an above-forecast net profit of z∏.195.5 million in the fourth quarter. The result represents nearly a five-fold y/y increase – the bank netted z∏.40.7 million in Q4 2009.

The figure also bettered the z∏.173 million average estimate which Rzeczpospolita compiled based on a survey of analysts. For full-year 2010, BRE’s net income equaled z∏.641.6 million.

The “return to high profitability is an effect of both the improvement on the income side as well as a significant drop in loan loss provisions,” BRE wrote in a statement.

The lender booked z∏.1.8 billion from net interest income for the full year, and z∏.503 million in Q4 alone.

Earnings from net fees and commissions increased by 25 percent in 2010 because of an increase in cross-selling in retail banking and an expansion in customer numbers.

Earnings from net fees and commissions equaled z∏.200 million in Q4, exceeding estimates by around z∏.8 million.

On the loss side, while the market expected BRE’s net

impairment losses to total z∏.142 million, in the end they amounted to z∏.126 million in the final quarter of 2010.

Despite the bank’s return to form, it has chosen not to pay out a dividend this year.

Instead, it intends to begin paying them again next year, chief executive Cezary Stypu∏kowski said last Wednesday.

Natalia Kazik, Gareth Price

Moving beyond the crisis BRE Bank's net profit (in z∏. millions), Q1 2009-Q4 2010 250

206.4 200 150 100

115.4 77.2

195.5

124.2

72.4 40.7

50 0 -50

-61.5 -100

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Source: BRE Bank

Spain’s Banco Santander has put forward an offer to buy a 100 percent stake in Poland’s third-largest lender, Bank Zachodni WBK. The offer values the bank at around z∏.16.6 billion and, according to a London Stock Exchange regulatory communique, it works out to z∏.226.89 per share.

“The Tender Offer will be open for acceptance from 24 February 2011 to 25 March 2011 and it is expected to be settled on 1 April 2011,” the communique reads.

The Spanish bank had already agreed to buy Allied Irish Banks’ 70 percent stake in BZ WBK for z∏.11.66 billion last year in a deal made public

Citi Handlowy made a profit of z∏.755 million in Q4 of 2010, a 50% jump y/y, according to figures revealed last week. That was slightly better than the z∏.744 million the market was expecting. In Q4 alone, the bank made z∏.195 million, a 92% jump year-on-year. Citi has focused on retail customers since its most recent restructuring, and the bank is looking to open 100,000 new personal accounts this year.

in September 2010. But Polish banking regulations stated that any bidder buying over 66 percent of a banking asset must bid for the remaining amount. Santander was thus obligated to bid for the full 100 percent of BZ WBK. Santander’s offer now has to be accepted by the Polish Financial Supervision Authority and the Warsaw Stock Exchange, where BZ WBK is listed. It also has to satisfy conditions laid out in the tender offer document, which includes gaining the approval of those who hold more than 70 percent of all outstanding shares in the Polish lender.

Kredyt Bank beats Q4 expectations

Katarzyna Piasecka

Santander is obligated to bid for 100 percent of BZ WBK

5

Citi Handlowy reports 2010 profit up 50%

Santander launches tender for full stake in Bank Zachodni WBK

Pekao mulls Millennium

Bank Pekao would consider a bid for Millennium if it were to come up for sale

www.wbj.pl

COURTESY OF WIKIMEDIA COMMONS

FEBRUARY 14-20, 2011

Kredyt Bank reported z∏.57 million in Q4 2010 net profit, and a full-year net profit of z∏.185.9 million. Its operational profit for the full year reached a recordbreaking z∏.703 million.

However, the bank had only z∏.111 million in reserves in Q4, according to Puls Biznesu, in contrast to the z∏.373 million it had a year earlier. ●

6

INDUSTRY NEWS

www.wbj.pl

FEBRUARY 14-20, 2011

E-commerce

Regulator UOKiK blocks e-tailer tie-up Retailers NFI Empik Media & Fashion and Merlin have expressed surprise at the Office of Competition and Consumer Protection’s (UOKiK) decision to block the merger of their online divisions. EM&F has not excluded the possibility of appealing, and could make its decision this week.

In reporting its decision, UOKiK underlined that it takes such actions rarely, noting that this was only the sixth such case since 2004.

Technically, the merger would give the new entity (owned by 60-40 by Empik and Merlin) a 40 percent share in the online book and music markets. Although this would not represent an outright monopoly, UOKiK argued that it would lead to dominance.

“The entity would be able to act independently of book suppliers, publishing houses and other online shops offering music discs or nontechnical publications,” UOKiK said in a statement.

Empik’s market share, sales network, brand and promotional activities are important

Polish auction-market leader Allegro, even if the latter sells more books,

enough to decide a book’s success or failure, according to

UOKiK’s research.

Meanwhile Merlin.pl, on the market for a decade, has much greater know-how and resources than, for example,

Telecoms

Egyptian bidder for Polkomtel?

Cairo-based Orascom Telecom is the latest on the list of possible suitors The list of potential bidders for Polkomtel, Poland’s biggest mobile phone operator, continues to grow. The local media were abuzz with the news that Egyptian telecoms giant Orascom could be interested in a 100 percent stake.

Other names allegedly in the race include Londonbased CVC Capital Partners and Apax Partners, Swedish TeliaSonera, Polish businessman Zygmunt Solorz-˚ak and a joint bid by American firms TPG and Blackstone Group.

“I think all the companies

mentioned are serious bidders, but when it comes to opening envelopes, in my opinion a strategic buyer usually offers a higher price than a financial investor, so I believe that the highest bids will come from purely telco companies,” said Pawe∏ Puchalski, an analyst at DM BZ WBK. No official offer has surfaced yet, but the suspense could end soon. Managers of the three Polish companies which together hold a majority share in Polkomtel (PKN Orlen, PGE and KGHM) have said that the deal could be completed by the end of the first half.

Should that be the case, it would be reasonable to expect indicative offers in the coming

weeks and a selection of potential buyers to conduct due diligence in March, said Mr Puchalski.

In his opinion, although a Polish offer could be given preference, as state-controlled companies together own 76 percent of Polkomtel, there is no clear front-runner and the final decision will be made according to price.

Polkomtel, which operates the Plus mobile network, has been valued at €4 billion. The long list of interested companies and Polkomtel’s leading position in Poland could yield higher bids, however Mr Puchalski expected the decelerating growth of the mobile segment may trim the final Alice Trudelle price.

explained Piotr Krawiec, CEO of PR and marketing agency Praktycy.com.

Merlin and Empik argue that the authority’s research is

outdated. “The market has been assessed based on data from 2009, which, in the case of such a fast-changing industry such as e-commerce, is no longer relevant,” Merlin.pl CEO Anna Bogdaƒska said in a statement.

The Polish market needs a merger in order to grow and prepare for the potential entrance of big foreign competitors, said Agata Czarnowska, a communications and PR specialist at Merlin.pl.

Mr Krawiec, who agreed with the authority’s decision, was skeptical of any threat from potential foreign investors. “The only foreign

company leading in the emarket is Google. AOL and eBay both failed. In other cases, Polish companies lead and I wouldn’t be afraid,” he said.

Merlin and Empik have said that the verdict does not alter their strategic orientations. An appeal could be in the works, and the z∏.130 million which Empik has reserved for the transaction will still be devoted to an unspecified investment in ecommerce.

Merlin.pl, for its part, has already resumed talks with other potential investors.

Alice Trudelle

Kraków Airport privatization soon A large stake in John Paul II International Airport KrakówBalice is to be put up for sale this year in what would be Poland’s biggest airport privatization so far, daily Dziennik Gazeta Prawna reported last week.

“We want to finalize the transaction this year,” Kraków Airport CEO Jan Pamu∏a told the newspaper.

The shareholders want to increase the airport’s capital by z∏.250-300 million, which means that the new investor could acquire a stake of up to 30 percent in the airport. The money obtained from the privatization would be spent on investments, such as the expansion of the passenger terminal.

Plans running to 2013 see close to z∏.1 billion being spent on the airport’s development.

COURTESY OF WIKIMEDIA COMMONS

EM&F and Merlin beg to differ with the anti-monopoly authority-

Shareholders want to raise z∏.250-300 million But its current shareholders – Polish Airports State Enterprise (owner of a 76.19 percent stake), Ma∏opolskie voivodship (22.73 percent) and the Kraków and Zabierzów municipalities (1.08 percent combined) do not have the funds.

Hence the need for the selloff.

The privatization of Kraków Airport would be the third to have occurred in Poland – Bydgoszcz’s and Szymany’s airports have already AS been sold off.

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

Sale via online auctions The Supreme Administrative Court has decided that sales conducted by natural persons via online auctions may be treated as economic activity (case file no.: II FSK 1016/09). In order to classify this as economic activity, the tax authorities investigate (among other things) the circumstances of the transaction, bank accounts and information about the owners of the website.

Whether sales via online auctions are classified as economic activity is decided primarily on the basis of the number of transactions as well as how they are organized. The prerequisites indicating the conduct of economic activity include consistent performance of the activity and the pursuance of profits. The sale of used goods which are personal property is not subject to taxation.

In cases when the tax authorities decide

that the taxpayer’s activity should be taxed but there are no tax records, the tax authorities estimate the amount of income. It is the taxpayer who has to prove the nature of the transaction made via online auctions.

are known to the companies and the amount of the fixed rate of the insurance may be divided by the number of persons which were covered by the agreement during a given period.

Insurance premiums constitute revenues

Notarial activities – new judicial practice

Pursuant to the tax authorities’ standpoint, a company which insures its management staff (including the members of management boards, supervisory boards and directors) against civil liability for their work is obliged to calculate, withhold and pay an advance payment for the income tax to the relevant tax office (individual interpretation of the Tax Chamber in Warsaw, IPPB4/415-825/10-2/JS), irrespective of whether the insurance agreement is concluded anonymously.

The tax authorities have explained their standpoint by pointing out that the insured

Entrepreneurs often have to conclude agreements or perform other acts in the form of a notarial deed. Thus it is worth looking closer at the results of one the Supreme Court’s latest resolutions, as it has shed light on certain ambiguities.

In its judgment of November 19, 2010 (court file no. III CZP 82/10), the Supreme Court decided that when certifying a signature on a document, the notary is not obliged to check whether the contents of the document are in conformity with the law. This means that in situations involving

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

doubt, the notary should not make any corrections to the text of an agreement if the notary’s task is only to certify the signature.

Moreover, if the document has been prepared in a foreign language, then it is not necessary to present a translation of the document for this notary to certify the signature.

Administrative proceedings facilitated On April 11, amendments to the Code of Administrative Procedure and the act on procedure before administrative courts will come into force. The changes are to facilitate administrative proceedings through the elimination of the existing limitations, which will, among other things, make it possible to complain if the public administration authority is prolonging the proceedings as well as if the lack of progress in the case is solely due to the authority. ●

INDUSTRY NEWS

FEBRUARY 14-20, 2011

www.wbj.pl

Municipal heat

Warsaw to set privatization record Heat provider SPEC could be worth z∏.1.5 billion The City of Warsaw has invited investors to submit bids for heating company Sto∏eczne Przedsi´biorstwo Energetyki Cieplnej (SPEC). This will be the largest privatization process ever conducted by a local government authority in Poland.

SPEC manages a heating

system which is 1,650 km long, making it one of the biggest in the world, according to its own estimates. The company provides for about 80 percent of Warsaw’s heating needs, supplying heat to some 19,000 buildings. In 2009, it had z∏.1.3 billion in net sales revenue and a net profit of z∏.36 million.

Moreover, the city authorities expect its 2010 results to be even stronger.

“SPEC’s results for last year will be significantly better than those of 2009,” Deputy Mayor Jaros∏aw Kochaniak told the press last week. SPEC is fully owned by Warsaw City Hall, which plans to sell an 85 percent stake.

Robert Zajdler, an energy expert at the Sobieski Institute, expects a lot of interest in the sale.

“It’s not the pipelines that

are SPEC’s greatest asset, but its market share. It has about two million customers and that number is growing. Due to EU regulations, the energy market is becoming increasingly integrated and such big firms are becoming more and more important,” he noted.

Commenting on fears that a private investor having a monopoly on the market could increase heating prices signifi-

cantly, Mr Zajdler said the heating sector had fallen under strong regulation by the Energy Regulatory Office. “Its the job of the regulators to keep an eye on energy prices,” he stated.

In the city’s 2011 budget it has z∏.750 million earmarked as revenue from the sale, but some analysts are estimating the value of the firm at up to z∏.1.5 billion.

Remi Adekoya

Automotive manufacturing

Intrall Rus returns to Poland Four years after shutting down its Lublin factory, the Russian firm is planning a comeback Russian car maker Intrall Rus has signed a letter of intent to build a research center and a factory in Poland. Construction should start in late 2011 and the facilities should be operational by 2014.

The total investment is valued at €270 million.

The letter of intent was

signed last week between Intrall Rus CEO Anatoly Leyrikh and representatives of the Polish Information and Foreign Investment Agency and Zachodniopomorskie voivodship.

Although the location of the planned investments has not been officially decided upon, Mr Leyrikh admitted that Szczecin was particularly attractive since it has a large pool of skilled labor, several universities and a seaport, as well as the willingness of local authorities to create favorable

conditions for investors.

The interest was mutual.

“The project does not focus on production but on research and development processes, which create employment for engineers who graduate from local higher education institutions,” said Jan Krawczuk, a member of Zachodniopomorskie’s management board.

Intrall Rus intends to produce commercial vehicles, light trucks and SUVs in Poland. The research center will develop prototypes, while

the manufacturing facility will assemble a limited number of models, producing an estimated 2,500 to 5,000 cars a year. Both are linked to a bigger car factory planned for construction this year in Stavropol, Russia.

The improvement in Polish-Russian relations over the last few years seems to have played an important role in Intrall Rus’ decision to return.

According to Mr Leyrikh, the closing of Intrall’s subsidiary Intrall-Polska, which

produced cars in Lublin from 2004 to 2007, was due to a large extent to tension in Polish-Russian relations.

“That is sad,” he told Gazeta Wyborcza. But, he added, it seems that PolishRussian relations have evolved from confrontation to cooperation.

Russian investments in Poland have fallen steadily over the last few years (totaling just €29.7 million in 2008), and there is hope that Intrall’s renewed interest could lure Alice Trudelle more.

7

Energa profit up over 50% Energa, Poland's fourthlargest utility, registered a z∏.655 million net profit in 2010, various media outlets reported last week. That's a 54% increase on its 2009 profit. The company’s sales also increased, jumping to z∏.9.5 billion from z∏.8.4 billion in 2009.

Roman Szyszko, the group’s vice president for financial affairs, credited restructuring with the improved performance.

First electric cars in Poland The first mass-produced electric cars will were delivered to customers in Poland last week. Four Mitsubishi i-MiEVs will soon be part of the fleet at energy firm Fortum, Rzeczpospolita reported.

This week another 20 cars will reach an as-yet unnamed receiver, and yet another shipment has already been placed with the company. “We're looking to sell some 100 of the cars in Poland before the end of the year,” Kinga Lisowska from Mitsubishi Motors Poland told the daily. ●

coming in february

2011

Over 2,500 firms from all major sectors of the Polish market get exposure in Book of Lists Is your company one of them?

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To get listed contact: Joanna Raszka: jraszka@wbj.pl tel: +48 22 639 85 68 ext. 119

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INTERVIEW

FEBRUARY 14-20, 2011

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Poland and South Korea

Investing in the center of Europe

How would you, in a sentence, describe the present character of our mutual relations?

I would describe our relations as very close, friendly and cooperative. Let’s look at some figures – when our diplomatic relations began in 1989, our mutual trade volume was $125 million. In 2009 it reached $4.4 billion.

What lessons you have drawn from East Asian crises?

At the time of the 1997 crisis, our government took drastic measures, freezing salaries of government officials and cutting public spending. It did not bailout private companies or banks, leaving them to survive or go through bankruptcy proceedings.

People experienced real hardship and some companies collapsed, while others restructured and survived. Our companies became stronger and better prepared for financial hazards. So, despite the recent global financial crisis, Korea recorded a positive growth of 0.4 percent of GDP in 2008. Last year our economic growth rate reached 6.1 percent.

What sorts of investments have Korean firms made in Poland?

Around 120 Korean companies

What are the main incentives for a Korean firm to choose Poland?

First, Poland is located in the center of the European continent, which makes it easy to export our products made here to other European countries.

Second, [Poland] provides a very good and reliable work force. You also have many highly qualified specialists in electronics, which is our main investment field. Equally important is the Polish government’s positive attitude to our investors, as is local governments’ assistance.

All taken together, we cooperate very well economically, while our friendly political relations provide a framework for this. And Poland, as a member of the European Union, also plays an important role in strengthening our ties with the EU. How are your relations with the EU developing?

We consider the European Union to be a very important economic and political partner and our relations with the EU are well advanced. The EU is Korea’s second-largest trading partner after China. Our trade and investment will be further

COURTESY OF THE EMBASSY OF THE REPUBLIC OF KOREA

have invested in Poland. The volume of their investment amounts to $1.5 billion. Among these is LG Electronics, which has built huge manufacturing bases in the M∏awa and Wroc∏aw areas which produce hi-tech LCD television sets. In particular, the LG companies operating in the Wroc∏aw area are called the “LG cluster” and 80-90 percent of their production is exported to the European market.

Korean companies in Poland import spare parts and machinery from Korea to produce their goods. In 2009, the import of Korean products to Poland reached $4 billion – with major parts and machinery accounting for more than 80 percent. The value of Polish export to Korea was a modest $254 million as of 2009, but this imbalance is partially compensated by including the value of Polish goods produced by Korean companies which are exported abroad.

According to the Polityka weekly, LG Electronics M∏awa and Wroc∏aw were the fifthand sixth-largest exporters in Poland and their export volume was recorded at $3.2 billion in 2009. In addition, Korean investors make an important contribution to the Polish economy by employing 15,000 people in their factories.

Polish children exposed to internet dangers

Relations have developed remarkably since 1989, says Ambassador Joon Jae Lee enhanced after the Korea-EU Free Trade Agreement, which was signed in 2010, takes effect on July 1 this year.

Among EU member states, the Republic of Korea does not invest only in Poland, but also in other Central European countries like the Czech Republic, Slovakia and Hungary.

In political terms, Korea maintains close relations with the EU, which is an important world power. As such, the EU is vitally interested in maintaining peace and stability on the Korean Peninsula, which is a primary goal for the Republic of Korea.

How have your security and foreign policy been affected by the recent acts of North Korean military aggression and its general hostility?

North Korea’s nuclear weapons development program poses a serious threat not only to the Korean Peninsula, but to all of Northeast Asia.

The world is worried about this and political and diplomatic steps are needed to resolve the North Korean nuclear issue.

Our policy is focused on maintaining peace and stability in the Korean Peninsula. We want to solve this issue in a peaceful manner, through dialogue and negotiation. We also want to develop inter-Korean relations through talks and various channels, but North Korea does not respond well.

What about relations with other neighbors?

To secure peace and stability on the Korean Peninsula, cooperation with our neighbors is very important. After the end of the Cold War, we were able to

Brussels to Warsaw: curb spending Brussels wants Poland to cut its public finance deficit from 7.9% to 3% of the country’s GDP in the next three years. The government must therefore cut some z∏.100 billion or find new sources of income.

Already, salaries of public servants have been frozen and a number of road and highway improvements and new construction projects have been axed.

However, it’s possible that Poles could also expect a drop in benefits and another hike in VAT rates.

Joon Jae Lee, the Republic of Korea’s ambassador to Poland, sits down with WBJ to talk bilateral trade and strengthening relations Ewa Boniecka: What has had the greatest influence on the development of relations between the Republic of Korea and Poland?

Joon Jae Lee: The history of our diplomatic ties is not that long – it dates back to 1989, when the communist regime collapsed in Poland. During those 22 years our relations have developed remarkably in the economic, political, technical, scientific and cultural domains.

This progress was possible thanks to political will on both sides, which led to practical actions. There have been exchanges of state visits at the highest level. In 2004, Korean President Roh Moo-hyun visited Poland and in December 2008 President Lech Kaczyƒski paid a visit to my country.

The two governments have signed various agreements on cooperation in the fields of economy, science, culture and other areas. And when we celebrated the 20th anniversary of diplomatic relations, our President Lee Myung-bak visited Warsaw and talked with President Lech Kaczyƒski and Prime Minister Donald Tusk about the further development of our relations.

9

develop relations with our former enemy – China – who was on the opposite side in the Korean War. We established formal relations in 1992 and since then our economic exchange has developed remarkably. Now China is our largest trading partner.

We also maintain good relations with Russia, which in the Soviet era was a strong supporter of communist North Korea and was involved in the Korean War. In the past, Koreans would not even think of visiting Moscow, yet they do visit now.

“[Poland] provides a very good and reliable work force” Japan is our main partner historically, politically and economically. It is our third-largest trading partner.

The US is our most important partner and ally. We have a mutual defense agreement and close cooperation with the US is crucial for our national security. The US is also a very important economic partner for us.

Coming back to relations between South Korea and Poland – how are they in terms of culture and education?

On the occasion of the 20th anniversary of diplomatic relations between Korea and Poland [in 2009], we opened the Korean Cultural Center in Warsaw, which plays an active role in introducing Korean culture to Poland. To celebrate its first anniversary, the Cultural Center held an exhibition of

Korean calligraphy. Polish people are not familiar with Korean culture, and vice versa, although through various efforts the situation is gradually improving.

At Warsaw University there is a Korean Language Department supported by the Korea Foundation, which is a government organization. The Korean language is also taught at the Adam Mickiewicz University in Poznaƒ.

And in Korea, the Hankuk University of Foreign Studies in Seoul runs a Polish Language Department. Many of its graduates are working in Poland. These universities make a great contribution to successful promotion and mutual understanding.

In conclusion, I’d like to ask a personal question – what is your personal impression of living in Poland?

I am very satisfied with my life in Poland. I take private lessons in the Polish language, which is very difficult for us, but I am making some progress.

The Republic of Korea has a relatively small territory and a dense population, so Poland seems a big country in comparison. Korean cities are crowded and there is little space for green areas in them. In Poland there are lots of trees even in the cities.

When it comes to Polish people, when I meet them in the street their facial expressions seem stiff and inhospitable, but when we have a chance to talk or get together they are very friendly. On the other hand, Korean people are rather timid and composed at first, but in fact they are no less emotional than Poles! ●

Only 5% of Polish parents use filtering software to prevent children from accessing inappropriate websites, significantly less than the European average. The findings come from a new report from Eurostat, launched in connection with Safer Internet Day on February 8. Use of parental control software remains limited in the EU27 in general (14% on average), but is comparatively much higher in Western and Northern Europe than in Eastern and Southern Europe.

Tunisia safe for Polish tourists Despite the political instability in North Africa, Poland has declared Tunisia to be a safe destination for tourists looking to spend their holidays abroad. Exim Tours plans to fly its first charter to Tunisia at the beginning of March.

Some 50 people have already bought tickets for the first flight and company officials believe the plane will soon fill up. Oasis Tours is another travel agency renewing its trips to that country. Travel agencies across Poland are also getting ready to renew their trips to Egypt. Many firms have postponed flights until the end of April, but Poles can already buy Egyptian holiday packages for the coming summer. ●

10

BUSINESS ENVIRONMENT

www.wbj.pl

Household finance

Greek tragedy

Poles financially insecure Feeling vulnerable Percentage of financially vulnerable households in Poland, 2008-2010

50

40

30

20

10

% 2008

2009

2010

Source: The Genworth Index 2010

FEBRUARY 14-20, 2011

Just two percent of Polish households feel financially stable Poles are some of the least financially secure among people surveyed in 18 North American and European countries in the 2010 “Genworth Index,” prepared by Bristol University and financial security giant Genworth Financial.

The survey measures the level of financial difficulty experienced by households (a proxy for over-indebtedness) and households’ financial expectations for the future.

Thirty-six percent of Polish households are described as “financially vulnerable,” na-

mely those that often or regularly experience financial difficulty and who feel that their situation is unlikely to improve. This was an improvement on 2009, when 46 percent of Polish households were considered vulnerable, but worse than in 2008, when the figure stood at 27 percent.

Out of the 18 countries surveyed, only the Portuguese (51 percent) and Greeks (65 percent) were less confident in 2010.

In comparison, the number of financially vulnerable households in Germany in 2010 was 25 percent, according to the survey, while in crisis-ridden Spain it was 32 per-

cent. Countries that scored least vulnerable were Norway, Denmark and Sweden, where only three, five and six percent of households were described as vulnerable.

“Poles are rather pessimistic by nature and that’s probably one of the reasons why the number is so high.

The fundamentals of the economy are not so bad and wages are increasing slightly,” said Grzegorz Maliszewski, chief economist at Bank Millennium.

“However, on the downside there is volatility in the currency market. Many Poles have loans in Swiss francs and the fact that the franc is strengthening,

Percentage of financially vulnerable households in selected nations, 2010 80 70 60 50 40 30

Average for 18 countries: 24%

20 10 %

Greece

Portugal

Poland

Great Britain

US

thereby increasing their monthly payments, is definitely worrying for many,” he said.

Nevertheless, Mr Maliszewski doesn’t expect consumption to slow in Poland this year.

Only two percent of Polish households consider themselves financially secure, down from three percent in 2009 and five percent in 2008, according to the survey.

Remi Adekoya

Inflated expectations

Wage pressures high, salaries continue to rise

Gross wages and inflation rates (for 2010)

The average monthly gross wage in Poland in the fourth quarter of 2010 was z∏.3,438.21, a six percent y/y increase, the Central Statistical Office (GUS) reported last week.

However, wages in the corporate sector grew by a considerably slower 4.3 percent in the final three months of last year.

“These figures indicate that wage pressures in the Polish economy are stronger than the monthly data from the corporate sector suggested,” Bank Zachodni WBK wrote in an analysis.

Indeed, wage figures may be significant for the rate-setting Monetary Policy Council (RPP), especially if subsequent data confirm the persistence of high wage growth, analysts say. Last month, the RPP raised interest rates for the first time since June 2008 on inflationary fears, but the latest data seem to suggest wages

could be starting to align with inflation.

“Members of the [RPP] had repeatedly emphasized the importance of labor market data,” BZ WBK wrote.

The average monthly wage increased by 1.5 percent for the full-year 2010, to stand at z∏.3,224.98.

Gareth Price

Norway

Source: The Genworth Index 2010

Wages Poland’s interest-ratesetting body will be keeping an eye on wage pressures

Canada

February March April May June July August September October November December

Average gross wage

CPI rate (y/y percentage change)

in enterprise sector (in z∏.)

3,288.29 3,493.42 3,398.67 3,346.61 3,403.65 3,433.32 3,407.26 3,403.68 3,440.22 3,525.67 3,847.91

3.1 2.7 2.4 2.1 2.2 2.0 2.0 2.5 2.8 2.7 3.1

Source: Central Statistical Office, National Bank of Poland

OPINION

FEBRUARY 14-20, 2011

www.wbj.pl

11

Egypt and the mirage of European unity Joanna Wóycicka

N

The Baroness speaks

Deserting paradise

My faith in EU diplomacy perished in Egypt. A year and two months ago the first head of EU diplomacy was appointed – the Briton Catherine Ashton. She was an uninspiring choice, mildy put, and even the British press was critical at the time: “She is the best-paid female politician in the world, but she would be better suited to running a parish council than an EU institution,” the tabloid Daily Mail thundered.

either the financial crisis nor the heated debates over the budgetary frameworks for the coming years ever undermined my faith in the European Union.

However, the events in Egypt have clearly and quickly shown that the economic projects of Jean Monnet and Robert Schuman have not, in practice, created political unity on the continent.

There is no such thing as a citizen of the European Union.

When the events in Egypt began to spiral out of control, American diplomats took the speedy decision to evacuate US citizens. At the same time, a chaotic exodus of Europeans from the Red Sea tourist resorts got under way. Individual national governments appealed to their citizens to return home, created their own evacuation plans and sent additional planes for their citizens.

Meanwhile, the institutionally bloated EU was unable to create a rapid reaction team or to coordinate events so that all of its citizens would feel that Brussels was looking out for them, just as Washington was for Americans. The EU working group for consular co-operation felt that there was no need to carry out action on such a scale. Maybe it was even right.

Nevertheless, it could have treated the situation in Egypt as a good testing ground, carrying out such an action in order to test EU efficiency and logistics. Even if “Operation Egypt” had not been a total success, it would have provided valuable experience and shown how to

behave in such critical situations in the future.

“There is no such thing as a citizen of the European Union” Kinder commentators described Ashton as a great unknown, suggesting that it would take time to get to know her as she constructed the EU’s office of foreign affairs.

Unfortunately, after many months in the role, we know enough about Ashton to call her appointment a terrible mistake. It was just last December that the European External Action Service, a several-thousand-strong army of diplomats with a network of around 150 embassies, began to function. Ashton has not made a single speech in which she has sketched out Europe’s political strategy towards key international partners such as Russia, the US or China.

Indeed, three full days passed after the bloody suppression of demonstrations in

Cairo before Ashton issued a stolid statement in which she appealed to all sides in the conflict to exercise self-restraint and keep calm.

Her most resolute phrase was: “I also reiterate my call upon the Egyptian authorities to urgently establish a constructive and peaceful way to respond to the legitimate aspirations of Egyptian citizens for democratic and socioeconomic reforms.” Ashton could have equally well kept silent.

The bureaucrats in Brussels have precisely fixed the length of herrings that may be caught and calculated how bent a commercially sold cucumber may be, but they have not created a common security policy.

They prescribe common legislation, but cannot create a diplomacy which speaks unanimously or, gasp, sensibly.

This is in total contrast to the US, which so efficiently managed the evacuation of its citizens from Egypt. The country’s federalist system allows states to have varying legislation (e.g. in the question of applying the death penalty), but national security and the diplomatic service remain in the management of one central point.

Thus it seems that one of Egypt’s many lessons is that the United States of Europe remains little more than a mirage. ● Joanna Wóycicka is the former head of the foreign sections of the ˚ycie Warszawy and ˚ycie newspapers and the former head of the foreign department at the Polish Press Agency (PAP). j.woycicka@hotmail.com

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.

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

POLITICS EDITOR

E. BLAKE BERRY (BBERRY@WBJ.PL)

REMI ADEKOYA (RADEKOYA@WBJ.PL)

ALEKSANDRA SLABISZ RICHARD WERNICK JOANNA WÓYCICKA

ONLINE & NEWS EDITOR

INTERNATIONAL EDITOR

GARETH PRICE (GPRICE@WBJ.PL)

ALICE TRUDELLE

INTERNS

REAL ESTATE EDITOR

CONTRIBUTORS

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL)

EWA BONIECKA ANTHONY CASEY

(ATRUDELLE@WBJ.PL)

PAUL FOGO JUDITH GLINIECKI TOMASZ JERZYK ADAM NARCZEWSKI PRODUCTION MANAGER

CARTOONS

GRAPHIC DESIGNER

PIOTR WYSKOK

¸UKASZ MAZUREK

PIOTR WYSKOK

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

ALEX HAYES NATALIA KAZIK KATARZYNA PIASECKA

WBJ SALES & ADVERTISING

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

Beware the Weimar Quadrangle

The illusion of common diplomacy

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

BOOK OF LISTS SPECIALIST

JOANNA RASZKA (JRASZKA@VALKEA.COM)

M

uch was made last week of Poland’s new chumminess with France and Germany, as French President Nicholas Sarkozy and German Chancellor Angela Merkel seemed at pains to fawn and offer platitudes of partnership. Some interpreted the pledges to support Polish initiatives during its EU presidency in the second half of this year, and the invitation for Warsaw to join their “Pact for Competitiveness,” as signs that Poland has finally joined the EU’s big leagues.

This newspaper, however, saw it a little differently. The Franco-German flattery was carefully calculated, and the underlying motives are not necessarily aligned with Poland’s long-term interests.

Warsaw must therefore be wary.

Playing the third wheel Poland’s stature has indeed grown in the EU since its 2004 accession, and cooperation with the country would give policy initiatives powered by the Franco-German engine a greater chance of success. But the Polish wheel on this wobbly tricycle is obviously the smallest of the three. An uncooperative Poland would make it harder – but not impossible – for France and Germany to reach their goals.

Consider the steep price Poland might have to pay for its “greater influence” in EU affairs. The jury’s still out on the recently proposed Pact for Competitiveness, but early assessments suggest that France would be its main beneficiary, while Poland stands to lose out.

Though some elements of the proposed pact are desirable – such as raising retire-

ment ages and ending the indexing of public sector wages with inflation – Poland must not agree to harmonized CIT rates. Its low, flat rate of 19 percent is one of its most important investment incentives, and one of the key ways in which it “competes” with other countries in the region.

This is not lost on Germany and France, with their CIT rates of 29.83 percent and 33.33 percent, respectively.

Budget bust-up Then there is the crucial EU budget for 2014-2020. Net contributors such as France and Germany will look to restrict payouts to their less-

“Poland must strive for greater influence in EU affairs, but not at the cost of its own interests” developed eastern neighbors.

But Poland needs to keep the EU funds flowing, or it risks losing momentum in the process of catching up to its Western peers, economically speaking.

Reports last week surfaced that suggested EU Budget Commissioner Janusz Lewandowski, a Pole, could be sidelined during the drafting of the budget. This has admittedly been contested by Mr Lewandowski himself, but it may not matter much – with the UK siding with France and Germany in this matter, the budget commissioner will likely be hamstrung anyway.

But Poland will, and should, fight hard for more EU funding. If the French and

Germans think a pat on the back and a bit of cozying up will win Poland’s acquiescence for EU funding cuts, they will likely be disappointed.

Russian roulette Finally, there’s foreign policy, and President Bronis∏aw Komorowski struck a telling note when he said that it would be “highly recommended” if Russia were to sit in at the next meeting between the three EU countries. While this newspaper favors a cautious warming of relations with Russia, Germany and France have too often – and too eagerly – capitulated when it comes to the Kremlin’s designs in Europe. Germany’s murky partnership with Russia on the Nord Stream pipeline is an excellent example of this.

Mr Komorowski’s statement doesn’t bode well for the future of the grouping, which risks becoming a FrancoRusso-German forum, with diminutive Poland in the center. Though it risks sensationalizing the issue, it must be said that Poland has played the middle ground before, and it hasn’t brought profit.

Better to preserve the triangle and consult with Russia on relevant matters than to form an unwieldy Weimar Quadrangle. Four’s a crowd, as they say.

Poland must strive for greater influence in EU affairs, but not at the cost of its own interests. Franco-German support for Polish initiatives is welcome, but the government must play the game of European geopolitics carefully, making sure that its key priorities remain unswayed.

If it puts platitudes before economic growth, its “greater influence” in the bloc will be worthless. ●

COVER STORY

www.wbj.pl

Crash compensation breakthrough A breakthrough in talks over compensation for the relatives of the victims of the January 2008 CASA military airplane crash in Miros∏awiec has been reached, Rzeczpospolita reported. The CASA plane crash occurred on January 23, 2008 in northwest Poland. Highranking military officials were among the 20 victims of the air accident.

Food exports see big jump Experts estimate that last year the value of Polish food products exports increased by as much as 16% and exceed €13 billion. Some 10% of that total was sold to Germany. In the first 11 months of 2010, the value of confectionery sales grew by 14%, while poultry and meat exports each grew by about 20%. Butter exports jumped more than 100% and milk, cream and ice cream sales were up 30%.

However, analysts predict the z∏oty’s strengthening could curb the trend.

Stagnation in regional job markets Recent analyses of regional job markets show that many Polish firms are still waiting for better times and are stalling on hiring new workers, Rzeczpospolita reported. Economists are troubled by reports of unemployment trends throughout Poland, which say that 2010 saw virtually no regional job market where the situation drastically deteriorated or improved.

That is in contrast with previous years, in which it was common to find regional markets with declines or increases that significantly deviated from the national average. ●

FEBRUARY 14-20, 2011

Currency

The z∏oty rising Anthony Casey Forecasts expect the z∏oty to strengthen this year, but the specter of a sudden depreciation remains worrying At the end of last year, analysts were decidedly bullish regarding the prospects for Poland’s currency. A December survey of analysts by Bloomberg saw the z∏oty as having the greatest potential among Central and Eastern European currencies, and Parkiet predicted that it would gain 7.2 percent against the euro in 2011.

Then came the turmoil in North Africa, as Tunisia and then Egypt fell into chaos, with smaller protests springing up elsewhere in the region. The z∏oty wobbled, notably in the last week of January and the first week of February. Recovery was swift, but these events served as a reminder that any foreign exchange market is at the mercy of forces majeures.

Risk factors “Global events are the main factors that affect the Polish currency. The z∏oty is still considered an emerging market currency, and despite favorable domestic news, any global turmoil or stock market decrease causes an immediate sell-off of the z∏oty,” said Adam Narczewski, a currency specialist at X-Trade Brokers and managing director of its Hungary office.

But, he added, the past three years have also seen the z∏oty gain a degree of independence, especially in relation to other Central and Eastern European currencies.

“When Hungary dramatically increased interest rates in 2008, the z∏oty tumbled.

Recent events in the same country have not affected the z∏oty so much,” said Mr Narczewski.

Piotr Bujak, a senior economist with Bank Zachodni WBK, noted the influence of the euro zone on the Polish currency, as well as echoes of monetary policy in major markets.

“Persistently high uncertainty regarding debt problems

SHUTTERSTOCK

12

in the euro zone periphery, Japan and the US, and increasing concerns about rising inflationary pressures and the need for aggressive monetary tightening in major emerging markets, notably in China, have a significant impact on the level of global risk appetite. This in turn is the main factor determining the z∏oty’s performance,” he stated.

Thus, Mr Bujak suggested, the z∏oty could rapidly depre-

ciate if global risk aversion were to spike on euro-zone debt woes or policy tightening in major emerging markets.

Michael Dembinski, strategy and policy director at the British Polish Chamber of Commerce, agreed that the z∏oty’s performance is linked to that of other currencies, but said that the picture, regionally at least, is improving. Like Mr Narczewski, he believes there is evidence of a growing

distinction between the z∏oty and other regional currencies.

“Back in 2008, it was enough for countries not even bordering Poland, such as Latvia and Hungary, to have problems for the z∏oty to nosedive,” said Mr Dembinski.

He added, “The ‘green island’ phenomenon of 2009 has persuaded at least some trigger-happy FX dealers that ‘Eastern Europe’ is not one homogenous zone, but not all

International trade

Striking a balance Any shifts in the value of the z∏oty will have an effect on Poland’s trade balance. So, what can businesses relying on international trade expect this year?

According to Bank Zachodni WBK’s Piotr Bujak, the expected moderate appreciation of the z∏oty should not hurt Polish exports much since, according to BZ WBK’s estimates and other research, these are driven to a greater extent by external demand than by exchange rate developments.

“However, a stronger z∏oty will have some limited negative impact on exports – and at the same time a positive effect on imports, making imported goods cheaper and more competitive compared with domestically pro-

duced goods. One should expect a widening of Poland’s trade deficit, which should in turn constrain appreciation of the z∏oty.”

The BPCC’s Michael Dembinski, meanwhile, predicted a continuation of “positive trends” in Poland’s foreign trade.

But, he added, “The value of imports last year, whether denominated in z∏oty, euro or dollars, grew faster than exports. Should the z∏oty gain in value, this trend is likely to continue.”

A weaker z∏oty against the euro would be good news for exporters, industrial production and the balance of trade, he said, and a slight depreciation of the z∏oty would be beneficial for GDP growth. ●

of them; the backwash from the recent FX flusters occasioned by Greece and Ireland also hit the z∏oty, so I’d say that the z∏oty is still vulnerable to exogenous shocks – but not to the same degree as it has been in the recent past.”

Designed intervention So, if the z∏oty is indeed at the mercy of external factors, what can be done in Poland in order to minimize risk?

State intervention is one tool which can be – and has been – employed. Last spring, for example, Poland’s Monetary Policy Council (RPP) backed the National Bank of Poland’s intervention in the foreign exchange market, allowing it to buy foreign currency. The move pushed the z∏oty down almost one percentage point against the euro.

This was, according to BZ WBK’s Piotr Bujak, the first time since the late 1990s that the RPP had seen the need for such intervention.

And it’s a good thing if such events remain rare, stressed Adam Narczewski.

“There are situations in which the government has intervened and will intervene.

From experience we know that

COVER STORY

FEBRUARY 14-20, 2011

www.wbj.pl

13

Legal Eye

The z∏oty’s ups and downs Average exchange rate on 10th of every month (or nearest date) of the z∏oty against the US dollar, euro, Swiss franc and British pound, January 2010-February 2011 1 GBP

1 CHF

1 EUR

1 USD

Currency and mortgages

6

5

Judith Gliniecki is a Partner with Wierzbowski Eversheds judith.gliniecki@eversheds.pl

4

3

01 0 ,2 Feb

01 0 10 2 Jan

De c,

20

10

01 0 No

v, 2

10 20 Oc t,

01 0 ,2 Se p

10 20 g, Au

01 0 Jul ,2

01 0 ,2 Jun

Ma

y, 2

01 0

01 0 r, 2 Ap

Ma r, 2 01 0

01 0 ,2 Feb

Jan

,2

01 0

2

Source: National Bank of Poland

such transactions might have short-term effects, but will not change the situation,” he commented. The government’s limited currency reserves mean it cannot act on the z∏oty without risk, he said, noting that this should be done only in cases of real danger to the economy, such as a very weak or very strong z∏oty.

Evidently the Polish government felt real danger more than once last year. At the tail end of 2010, state-owned Bank Gospodarstwa Krajowego sold off €2 billion. Reports at the time suggested that the purpose of the sale was to keep public debt below 55 percent of GDP in order to avoid legally mandated budget cuts.

The debt indeed seems to have fallen below that threshold – the latest estimate put it at 53.5 percent – but there’s no clear consensus on whether the intervention actually assisted in this.

According to Piotr Bujak, the sale had an impact on the performance of the z∏oty, but even without it the public debt wouldn’t have passed the threshold. X-Trade Brokers’ Adam Narczewski agreed, not-

ing that there was little risk by the time BGK made the sale.

He posited, “Certainly, the €2 billion sale by BGK helped, but it was not the deciding factor. The sale was, rather, a ‘normal’ transaction, with an additional, positive effect.”

A franc debate A matter which could have a significant impact on the z∏oty this year is the limiting of “high-risk” foreign currency

risk is practically unmanageable for ordinary, non-professional borrowers. The high share of foreign currency loans generates an additional increase of risk of an individual customer’s insolvency in the event of a depreciation of the z∏oty.”

Put simply, the KNF is concerned that a sudden drop in the value of the z∏oty would lead to a situation in which a large number of lenders would

“The z∏oty is still vulnerable to exogenous shocks – but not to the same degree as it has been in the recent past” loans. Marta ChmielewskaRac∏awska of the Financial Supervision Authority (KNF), Poland’s financial watchdog, noted that foreign currency loans currently comprise 63 percent of all household mortgages in Poland at present, with the Swiss franc a common choice.

“This is very high in comparison with mature markets,” she added. “We are deeply convinced that the currency

be put at risk.

Ms Chmielewska-Rac∏awska added, “In order to protect the banking sector against that risk, the [KNF] has prepared and adopted an amendment to the recommendation regarding managing risk associated with granting mortgages. We hope that the amendment will mitigate the risks mentioned above.”

The BPCC’s Michael Dembinski, however, believes

The year ahead

What lies ahead for the z∏oty?

Piotr Bujak, a senior economist at Bank Zachodni WBK, predicted an appreciation to around z∏.3.75 against the euro, driven by stronger risk appetite globally and rising interest rates in Poland, both of which will stimulate the inflow of capital to Poland.

“However, the domestic currency may remain volatile, as the trend of appreciation is likely to be temporarily interrupted by waves of heightened risk aversion due to debt problems in the euro zone and/or concerns about monetary tightening in major emerging economies, mainly in China,” he stated.

In his opinion, events which could influence the z∏oty include stronger global appetite for risk (due to improving prospects for global economic growth and/or the resolution of debt problems), privatization, or interest rate hikes that are higher than expected.”

Michael Dembinski of the British Polish Chamber of Commerce suggested that this autumn’s parliamentary election could have a marked effect on the performance of the z∏oty.

A decisive victory by any party or coalition seen by the market as having the will to force through reforms and public spending cuts,

however unpopular, would be good news, he added. On the other hand, a populist victory might signal a forthcoming lack of fiscal restraint, which, combined with further “wobbles” in the euro zone, could be dangerous.

“Barring any unknown unknowns, I’d like to think that 2011 for the z∏oty will be more like last year than a 2009 or a 2008 – stability is key,” Mr Dembinski stated.

Meanwhile, Adam Narczewski of X-Trade Brokers said, “I expect a relatively good year for the z∏oty, mainly due to favorable domestic factors. It is difficult to forecast year-end figures at this time, but the EUR/PLN should be in the z∏.3.77–3.80 range and the USD/PLN in the z∏.2.73–2.75 range.

According to Mr Narczewski, the strengthening of the z∏oty should be a stable process, with minor corrective swings. Negative influences could include public debt rising too quickly or the government being unable to keep debt below 55 percent of GDP. Major dangers, meanwhile, could arise from the debt problems of the PIIGS – Portugal, Ireland, Italy, Greece and Spain – or if stock markets experience a major corrective movement. ●

that borrowers ought to be able to make up their own minds, without the KNF’s interference.

“I think the Polish consumer who considers taking out a foreign-currency denominated mortgage is generally very well aware of the risks of doing so,” he said. “Personally, I’m in favor of a caveat emptor approach here, rather than limiting people’s freedom as to the currency in which they wish to finance the purchase of their house.”

Adam Narczewski went further, saying that the KNF’s warning would have little effect on the economy as a whole.

Indeed, in his opinion, banks will be the ones losing out.

“This decision is a strong reaction to the [global economic] crisis and the currency exchange risks that unaware clients take. The impact will be negative on banks, which will lose the fees from foreign currency loans,” he stated.

“Clients will complain about the lack of choice, but the effect on the overall economy will be unnoticed.”

The interest rate factor Interventions and tighter controls on the flow of foreign currency are not the only means of defending the z∏oty against external risk. Piotr Bujak said that interest rate differentials had recently become a more important influence on exchange rates.

“The Polish central bank may use interest rate changes in order to influence the z∏oty,” he suggested. “However, the goal is not to protect the z∏oty, but to contain inflationary pressures. Experience shows that the exchange rate channel is very effective in affecting inflation.”

Adam Narczewski agreed that interest rate hikes could have a short-term effect on the currency, but he warned that such actions were not a practical long-term solution in the event of problems.

“Interest rates hikes by the RPP are not aimed at strengthening the z∏oty, but are a reaction to the changing conditions of the Polish economy. If the currency is tumbling, an interest rate hike will not save it.” ●

It’s easy to forget how far Poland has come over the last 20 years. In 1995, I paid cash for an apartment in Warsaw.

Yes, it was carried in a briefcase. No, I was not wearing a pin-stripe suit or a fedora.

By 2003, my next apartment was financed by a bank credit secured by a mortgage. Even then, there was a choice of currency. However, the gauntlet of credit checks and other procedures required to prove sufficient household income was daunting.

By 2011, such mortgages are commonplace, and the Financial Supervision Authority (KNF) has updated one of its many Recommendations on best practices for consumer lending and mortgages, including loans denominated in foreign currencies.

Foreign currency limits Although Poland has not suffered anything like the mortgage market crises seen in other countries, Poland’s own twist was the difficulties created by the jump in the foreign currency rates in late 2008. Originally adopted in 2006, Recommendation S addresses best practices for bank loans used to finance the purchase of real estate and mortgages. The KNF issued a new and improved Recommendation S in January. Banks have until the end of the year to embrace this new version.

Despite the relative stability of the z∏oty over the past couple of years, the KNF is still concerned about consumer loans indexed against a foreign currency. Although the new Recommendation S does not place any limits on the amount of foreign currency loans in a bank’s overall credit portfolio, it does require stricter credit checks.

For a foreign currency loan, the monthly payment is not supposed to exceed 42 percent of a person’s income.

For z∏oty-based consumer loans, Recommendation T allows monthly payment amounts of up to 50 percent of income (or 65 percent for those in higher income brackets).

Spreads Since April 2000, when the Polish z∏oty was allowed to float freely, the market has determined exchange rates.

While this sets the foundation for normal business transactions in Poland, it does mean that the rates can vary dramatically, such as the creeping rise of the z∏oty in 2007-2008, followed by its plummet in late 2008.

In its Recommendation S (II), the KNF expressed its concern that individuals might not be fully aware of the potential risks of taking out mortgage-backed bank loans indexed to foreign currency. Recommendation S (II) was adopted in December 2008 and came into force in July 2009.

Above all, banks are required to educate individuals about the exchange rate spread, that difference between a bank’s buy and sell rates. Each bank is allowed to set its own spread. Ultimately, banks make money by buying low and selling high. In accordance with Recommendations S (II), however, banks should use the same exchange rates for customers making payments on mortgage-backed foreign currency loans as they offer to other customers.

Additionally, Recommendation S (II) requires banks to allow their customers to repay a mortgagebacked foreign currency loan in the currency to which the loan is indexed. In other words, if my loan is in Swiss francs, I could decide to pay in francs, and not z∏oty.

While the intention was good, the practical effect has been meager. In order to change the method of payment, an amendment to the loan agreement is needed, and banks typically charge a (sometimes substantial) fee for this favor.

Best practice The “S” series of Recommendations are technically only a set of best practices.

However, the KNF has the authority to audit Polish lenders, and it’s not likely to be pleased if a lender fails to implement applicable recommendations.

Finally, not every lender in Poland must comply with the KNF’s Recommendations. For example, branches of foreign banks must comply with their home country’s financial supervision authority’s rules, and not Polish rules. ●

Construction is about to launch on MySquare’s luxury property in Mokotów

Belgravia’s boutique residential project has received the green light

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

Konik Polny’s preschool Warsaw-based developer Dolcan is getting ready to launch work on its Konik Polny investment in Warsaw’s district of Bia∏o∏´ka. The firm has the building permit and construction is scheduled to start in spring. In the meantime, Dolcan has decided to include a preschool in the development in order to better cater for parents with young children, although the facility will also be open to children living elsewhere. Delivery of the first units should take place in Q1 2012. In total, the project will comprise 600 units. ●

In this issue Miasteczko Ursus . . . . . . . . . . .15 Rondo 1’s certificate . . . . . . . . .15 Naruszewicza contractor . . . . .16 Korczowa Dolina funded . . . . .16 Office take-up in 2010 . . . . . . . .16 Property-related stocks . . . . . .16 Villa Saska permit . . . . . . . . . . .17 Puro Hotel number two . . . . . .17

Celtic states its case in Ursus The investor wants a new zoning plan adopted in order to build its mega-project, Miasteczko Ursus Faced with delays to its largescale Miasteczko Ursus project, investor and developer Celtic Property Development has launched a PR offensive.

“A modern, green Ursus or a second Skorosze?” the firm asked at a recent event, referencing a nearby neighborhood as an example of poor urban planning.

At issue is the zoning plan for the 50-plus ha which Celtic owns, through a subsidiary, in Warsaw’s Ursus district. The post-industrial property previously belonged to tractor-maker ZPC Ursus, but a draft plan to re-zone the area, allowing residential and commercial development, has yet to be adopted by City Hall.

“We urgently need a development plan for this area,” said Wies∏aw Krzemieƒ, head

Miasteczko Ursus would bring some 10,000 apartments to the market of the public administration in Ursus.

The plan to re-zone the area has met with resistance from local industrial ventures, which have publicly complained that it would harm their enterprises and require expensive investment in new infrastructure.

Contacted on the issue,

Warsaw City Hall stated that no decision had yet been made and that there is no deadline for adopting the zoning plan.

The Miasteczko Ursus project would bring around 10,000 apartments to the local market, which would equate to over 30,000 residents, according to Celtic’s

estimates. There would also be office and retail investments.

Meanwhile, Polenergia, an energy sector firm belonging to Polish tycoon Jan Kulczyk’s business empire, wants to build a cogeneration plant at the location. The plant would be capable of generating 150 MW of electrical energy and

200 MW of heat, supplying not only Miasteczko Ursus, but also the western and southwestern suburbs of Warsaw.

Artur Zdybicki, the chairman of Polenergia, said that the planned investment could exceed €100 million and added that his firm would be able to cover the total amount. Polenergia would, however, need to sign an agreement with Warsaw heating provider Sto∏eczne Przedsi´biorstwo Energetyki Cieplnej to be able to distribute heat.

This cogeneration plant investment may be partly responsible for local opposition to the zoning plan, however. Speaking to TVN Warszawa, Waldemar Majewski, a representative of the investor, suggested that adding another energy provider to the district had raised hackles.

“Competition isn’t welcomed in any sector,” he said, adding, “That’s probably true of electricity too.”

Katarzyna Piasecka

Green buildings

Rondo 1 earns LEED Gold MGPA’s office building has new green credentials Warsaw’s Rondo 1 skyscraper has been awarded a LEED Gold certification by the US Green Building Council (USGBC). It is the first already built, multi-tenant edifice in Europe to attain this rating.

According to the USGBC, Rondo 1’s water consumption has fallen by about 30 percent since the start of its certification process, in October 2009, and its use of light bulbs containing mercury has been considerably curtailed. The build-

ing now gets 10 percent of its power from renewable sources and around about 61 percent of its total waste is sorted. Sixty-three percent of employees working in Rondo 1 cycle to work or use public transport.

Rondo 1 was developed by Hochtief and delivered in 2006. It is now owned by MGPA Europe Fund II. “The LEED Gold certificate is an achievement we largely owe to Rondo 1 tenants and their employees.

There are over 70 companies and institutions located in Rondo 1 which employ in total 5,500 people. ... Their daily

help and pro-ecological attitude were crucial for the successful certification [process],” said Karol Bartos, vice president of asset and development management at MGPA. LEED certificates are awarded to buildings whose design, construction and operation meet sustainable development benchmarks.

The first building in Poland to be awarded a LEED certificate was a production-office building near Rzeszów, owned by BorgWarner Turbo Systems Poland, which obtained a LEED Silver rating.

Katarzyna Piasecka

COURTESY OF ADVANCED PR

The buildings of Park Post´pu office complex in Warsaw’s Mokotów district have been awarded GreenBuilding certificates, indicating they use at least 25% less energy than the national standard. Park Post´pu was developed by Echo Investment. It is a complex of four class-A office buildings connected at ground level. In total the complex will host 34,000 sqm of GLA once it is complete.

The fourth and final structure is awaiting fitout and should welcome tenants by the end of Q2.

Modzelewski & Rodek is overseeing construction.

FEBRUARY 14-20, 2011, LI 16/06

Zoning plans

COURTESY OF CELTIC PROPERTY DEVELOPMENT

GreenBuilding for Park Post´pu

•

Rondo 1 is the first building of its kind in Europe to obtain the LEED Gold distiction

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

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Logistics

FEBRUARY 14-20, 2011

Upmarket residential

Korczowa Dolina gets financing Karmar building for MySquare

Korczowa Dolina, the special purpose vehicle developing the Korczowa Dolina Distribution Centre (KDDC), has secured financing for the project. Bank BPS has agreed to back KDDC, which up to now has been developed using Korczowa Dolina’s own funds.

“Securing credit is an important stage in the investment’s overall realization, assuring an appropriate

pace,” stated Andrzej Rosiƒski, president of Korczowa Dolina.

According to the investor, Bank BPS has already paid the first tranche of credit and further funds will be transferred according to an agreed-upon schedule.

The Korczowa Dolina Distribution Centre, a z∏.150 million project located about 2.5 km from the PolishUkrainian border, is being developed to serve cross-border business. It is located in a visa-free travel zone and features trade-facilitating infrastructure, including a tax-free

center, customs agencies, banks and a currency-exchange office.

Construction began last November and the first phase of the project is expected to open this spring.

In total, KDDC will comprise three distribution buildings (named Kiev, Lviv and Donetsk), with a combined GLA of 45,000 sqm. The main shareholder in the development is Waimea Holdings Limited; Brabant is responsible for commercialization and Kaniewski ¸uszczyƒski Architekci designed the project.

COURTESY OF MYSQUARE

The first phase of the z∏.150 million distribution center will open this spring

EBB

Black and white dominate the building’s interiors

COURTESY OF MEDIADEM

Work on Rezydencja Naruszewicza is to start “very soon”

Bank BPS is backing Korczowa Dolina

Property-related stocks Security

Closing price on Feb 10

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

BUDIMEX

95,50

-1.24

76.40

106.10

24.03

25,530,098

2,438.12

CELTIC

18,80

1.13

16.01

72.00

N/A

34,068,252

640.48

DOMDEV

48,00

1.48

38.52

61.00

15.66

24,560,222

1,178.89

ECHO

4,35

-3.12

3.86

5.40

7.67

420,000,000

1,827.00

ELBUDOWA

188,40

11.88

155.00

188.40

12.14

4,747,608

800.45

ENERGOPLD

3,80

-0.26

3.57

4.50

-13.64

11,100,000

104.01

ERBUD

50,10

-2.62

47.00

61.00

-3.93

12,602,711

631.40

GANT

16,49

-0.06

15.69

26.00

-9.74

20,499,953

338.04

GTC

21,05

1.40

20.25

25.00

-9.54

219,372,990

4,617.80

HBPOLSKA

2,55

-2.30

2.54

3.95

-35.11

210,558,445

536.92

JWCONSTR

13,95

-0.14

11.40

18.69

18.22

54,073,280

754.32

LCCORP

1,50

-0.66

1.41

1.73

0.00

447,558,311

671.34

MARVIPOL

9,22

-4.95

8.83

22.31

-42.73

36,923,400

340.43

MIRBUD

4,25

-2.07

2.71

4.60

45.05

75,000,000

318.75

MOSTALWAR

48,20

2.34

47.10

77.00

-23.85

20,000,000

964.00

MOSTALZAB

2,74

4.18

2.63

4.84

-32.84

149,130,538

408.62

ORCOGROUP

32,47

5.08

19.00

34.20

24.45

14,053,866

456.33

PBG

196,40

-5.12

192.00

252.00

-6.03

14,295,000

2,807.54

PLAZACNTR

4,10

0.00

4.10

6.52

-31.44

292,647,720

1,199.86

POLAQUA

20,59

1.48

15.45

22.50

24.04

27,500,100

566.23

POLIMEXMS

3,60

0.00

3.60

5.29

-18.37

521,035,327

1,875.73

POLNORD

31,78

-2.55

30.80

44.00

-3.73

22,242,031

706.85

RANKPROGR

10,20

-1.64

9.59

10.96

N/A

37,145,050

378.88

ROBYG

1,85

1.09

1.70

1.94

N/A

257,390,000

476.17

RONSON

1,40

0.00

1.34

2.22

-15.15

272,360,000

381.30

TRAKCJA

3,65

0.00

3.63

4.97

-10.10

160,105,480

584.39

ULMA

81,80

-0.24

70.00

86.20

-4.88

5,255,632

429.91

UNIBEP

9,56

-2.55

6.34

10.30

53.95

33,927,184

324.34

WARIMPEX

10,35

4.97

7.64

10.44

22.49

54,000,000

558.90

ZUE

14,15

-2.08

13.45

15.19

N/A

22,000,000

311.30

Warsaw-based construction firm Karmar has signed on with MySquare to provide general contracting services for the latter’s Rezydencja Naruszewicza investment in Warsaw.

Construction is to get under way “very soon,” according to MySquare’s president, Micha∏ Orzechowski.

Delivery is scheduled for the turn of Q3/Q4 2012.

Rezydencja Naruszewicza is MySquare’s first investment in the primary market and it is valued at approximately

z∏.28.2 million. The project will be financed from the firm’s own resources and via credit from Getin Noble Bank.

Naruszewicz Residency will be erected on a 1,700 sqm plot in Warsaw’s Mokotów district, on ul. Naruszewicza. It will comprise 76 apartments ranging in size from 58 to 122 sqm.

Prices start at z∏.11,700 per sqm and run to z∏.17,000.

“The sale of the apartments began at the beginning of 2011,” said Micha∏ Orzechowski. “We have noted huge interest in the apartments of Rezydencja Naruszewicza. We estimate that there are already customers for approximately

15-20 percent of our apartments,” he added.

Designed by Szaroszyk & Rycerski Architekci, the building will comprise an eightstorey edifice flanked by two five-storey wings, with an underground garage. It has been designed to provide a modern facade which contrasts with the older architecture of neighboring buildings.

The interior of the apartment block, designed by fashion stylist Maciej Zieƒ, will be dominated by black and white and its décor should draw clear associations with 19thcentury French townhouses.

Natalia Kazik

Office markets

Regional recovery in 2010 Poland’s largest regional office markets more than doubled take-up last year Major regional office markets breathed a sigh of relief in 2010 as recovery from the economic slowdown took place in earnest. Take-up last year illustrated this improvement – the regional markets of Katowice, Kraków, ¸ódê, Poznaƒ, Tricity and Wroc∏aw saw a total of 230,000 sqm leased, according to data from Jones Lang LaSalle (JLL).

In comparison, take up in these markets in 2009 amounted to just 110,000 sqm.

“We noted an increase in corporate demand in all major office markets over 2010.

About 230,000 sqm was leased in regional markets, with Kraków and Wroc∏aw clearly taking a lead in respect to occupier activity,” stated Mateusz Polkowski, a senior research analyst at JLL. Take up, he commented, was generated by newcomers (like IBM in Wroc∏aw or Sony in Tri-city) as well as by companies expanding in cities where they

already operated (like Motorola or Capgemini in Kraków).

At the end of 2010, total modern office stock in the aforementioned markets amounted to 1.82 million sqm, with Kraków and Wroc∏aw jointly comprising 45 percent of that figure. New office stock in those markets totaled 215,000 sqm, compared with 227,000 sqm in 2009. Meanwhile, a further 238,000 sqm of

office space was under construction at the end of last year.

In terms of vacancy, the rate in ¸ódê was the highest as 2010 closed, standing at 21.8 percent. Wroc∏aw had the lowest rate, at 2.8 percent.

Finally, prime headline rents were lowest in ¸ódê, at €11–13.5/sqm/month, and highest in Kraków, Wroc∏aw and Poznaƒ, at €15/sqm/month.

E Blake Berry

Vacancies in ¸ódê Modern office stock and vacancy rates at the end of 2010, selected regional markets Vacancy Rate Planned completions in 2011

Office stock in 2009

Completions in 2010

600,000

25

480,000

20

360,000

15

240,000

10

120,000

5

sqm

Kraków

Wrocław

Tri-city

Katowice

Poznań

Łódź

%

Source: Jones Lang LaSalle

LOKALE IMMOBILIA – REAL ESTATE

FEBRUARY 14-20, 2011

www.wbj.pl

Hotels

Knight Frank’s deals

Second Puro on the way Norwegian capital group Genfer is expanding its chain of “intelligent” Puro Hotels. It has purchased land in Kraków and plans to build its second Puro Hotel at the site.

“We chose Kraków for the second location mainly with an eye to the tourism and business potential which this city conceals,” stated Rune Askevold, CEO of Puro Hotels. The site is about five minutes’ walk from Kraków’s Market Square and it neighbors a well-known park. The hotel will have 140 rooms.

Construction is scheduled to start in the second half of this year.

Over the last three months real estate services provider Knight Frank’s commercial agency team facilitated lease agreements worth 17,500 sqm in Warsaw, Katowice, Kraków and Wroc∏aw. The largest of these was signed with Emerson Process Management, which will take up 4,350 sqm in Warsaw’s University Business Park.

The chain’s “intelligence” is manifested through modern hospitality solutions. These include an electronic check-in kiosk, the ability to connect electronics like laptops and iPhones to a 40-inch TV, a temperature and lighting touchcontrol panel, and the ability to check out without heading to reception.

Meanwhile, Genfer’s first Puro Hotel will open for business on April 1. Located in central Wroc∏aw, the hotel has 102 rooms and, like its future sibling in Kraków, is located near its city’s Old Town. The design for the first Puro location was created by Wroc∏aw’s APA Hubka, with design agency Blacksheep responsible for interiors.

E Blake Berry

Legionowo gets a Tesco COURTESY OF CONTRUST

Genfer has bought land to host its second Puro location

Puro hotels boast “intelligent” solutions

Luxury apartments

Villa Saska gets the green light

COURTESY OF MEDIA EVOLUTIONS

Work on Belgravia’s high-end project will get underway soon Belgravia Polska has obtained the building permit for its luxury Villa Saska apartment building in east-bank Warsaw’s Saska K´pa district. Construction on the project is scheduled to begin this month; completion is due in December.

“Villa Saska is an offer of five luxury apartments in an architecturally exceptional building. In one of the units we’ve applied a rarely proposed solution – a panoramic window in a second-storey room with a mezzanine,” said Anna Hendzelewska, Belgravia Polska’s sales and mar-

Apartments in the development will range from 88 to 211 sqm keting manager. “This is an offer for those who particularly

17

value an appropriately well-lit interior.”

Units in Villa Saska will range from 88 to 211 sqm, with

gross prices of z∏.16,500-17,900 per sqm. Underground parking spaces will be available for z∏.60,000.

Villa Saska will be built in the space where Stefan Momot, a well-known sculptor, once lived and worked. The design for the building is intended to reflect the traditions of pre-WWII architectural modernism.

Belgravia entered the development market in 2007.

It’s other projects are Belgravia Residence, which is also a small, luxury project in Saska K´pa, and Casa del Arte Murano, a 33-unit investment located on the border of the Wola district and downtown E Blake Berry Warsaw.

Tesco has signed with Irlandzka Grupa Inwestycjna (IGI) to join its under construction Galeria Legionowo shopping center. The British supermarket chain has taken up 8,521 sqm. DTZ represented IGI in the negociations.

Galeria Legionowo is scheduled for delivery in H2 2013.

Farutex in KALC Farutex, a firm from the food sector, has signed with industrial property owner, developer and operator Goodman for the lease of 3,500 sqm of warehouse and 350 sqm of office space. The space in question is located in Goodman’s Kraków Airport Logistics Centre (KALC). Construction on the building began in October 2010 and is scheduled for completion in May. This lease brings the building to 75% occupancy. ●

LISTED FIRMS

www.wbj.pl

Rainbow acquires Orbis assets

Bomi rises in Q4

The firm looks to be in decent shape, but its industry’s woes may lead to further consolidation

But the grocer’s fullyear revenues slipped slightly

E Blake Berry

EBB

Supermarket slide Bomi's stock price over the last year 20

15

10

c1 0, Jan 2010 10 ,2 Feb 010 9, 20 10

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10 20

v1

0,

De

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01 1, 2

t1 Oc

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10

10

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Au

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20 2,

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y1

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is resolved. But, aside from the risk factors, he described it as a company with “generally good prospects” and a good balance of payments situation.

“One positive factor [in the industry] is that the market leaders will get stronger – those that have a good balance of payments situation, which aren’t greatly indebted – and Rainbow Tours is currently present among the leaders of this market,” he concluded.

In other words, Rainbow’s latest acquisition may not be the last one the market sees this year.

01

The market is generally waiting for Rainbow Tours’ next financial report, due out in a few weeks, but Mr Kurowski said the firm appears to have fulfilled its 2010 prognosis, give or take three to five percent.

“That’s a good result for such a difficult market as there was in the past year,” he stated.

Asked about Rainbow Tours’ situation, given the difficulties that the travel industry faces due to the crises in North Africa, Mr Kurowski noted that much depends on how quickly the situation there

0,

Rainbow Tours has added 12 new offices

,2

Poland’s largest bourse-listed travel company, Rainbow Tours, has just completed its acquisition of sales points previously owned by now bankrupt Orbis Travel. In total it has taken over 12 new travel offices, which it estimates will boost revenues by z∏.18 million.

In the new offices as well as in some of its existing outlets, the firm plans to offer new corporate services.

“We will offer [corporate clients] complex services for business travel, including the purchase of plane, train and tram tickets, hotel reservations and motivational trips,” company president Grzegorz Baszczyƒski said.

Seven of the locations are already operating under their new brand and the rest will launch in the near future.

According to Robert Kurowski, an analyst with AmerBrokers, the firm was selective in its acquisition of Orbis Travel’s assets, choosing only good locations in good cities.

lion, however. Revenues from retail operations for 2010 dropped about two percent y/y, to z∏.740 million, but distribution and franchising revenues together climbed by 4.6 percent, to z∏.666 million.

Analysts suggest the company could see significant growth this year if its wholesale performance continues to improve.

At the end of 2010, the Bomi capital group had a total of 1,228 outlets, including 34 upmarket shops and 20 supermarkets. In the distribution segment, it had five distribution centers, two cross-docking warehouses and a cash&carry wholesale outlet.

Polish grocery group Bomi appears to have put the worst of the financial crisis behind it.

While the firm’s full-year sales were slightly down, it finished the year with a strong performance.

For the fourth quarter of 2010, Bomi’s sales of goods amounted to z∏.370 million, up 4.4 percent y/y. Distribution and franchising figures were especially promising in Q4, rising 17.4 percent y/y.

Net profit figures were not released.

Bomi’s 2010 sales were two percent off 2009’s z∏.1.3 bil-

r1

The management of coal miner Bogdanka has decided to increase workers’ wages by 3.5%.

The move was meant to put an end to recent labor unrest at the company, but reports indicate unions are not yet prepared to return to work. The average salary at Bogdanka last year was more than z∏.6,000 per month, but workers are demanding more. ●

Supermarkets

10

Bogdanka labor unrest continues

Tourism

Ma

Goldman Sachs, Societe Generale and UBS will join some of the largest European investment banks in publishing their analytical reports on the Warsaw Stock Exchange, Gazeta Prawna reported. Citi Handlowy, Credit Suisse, Deutsche Bank, ING and UniCredit already publish there.

The reports include analyses of financial reports, banks’ business operations and company share prices.

FEBRUARY 14-20, 2011

Feb

Goldman, UBS to publish WSE reports

COURTESY OF RAINBOW TOURS

18

Source: Warsaw Stock Exchange

LISTED FIRMS

FEBRUARY 14-20, 2011

Oil exploration

KOV sends mixed signals Kulczyk Oil Ventures (KOV), Polish billionaire Jan Kulczyk’s oil exploration firm, opened last week on a disappointing note for investors.

The company reported that drilling at its Lempuyang-1 well in Brunei had resulted in the discovery of “a large amount of water.”

“The test results to date in the lower zone, which indicate high volumes of water being produced, are potentially influenced by poor isolation of a higher pressure zone (potentially water) below the test intervals,” the company’s communique read.

“These are disappointing results from one of two zones of interest at Lempuyang-1.

However, a more informed assessment of the well can be made only after the testing program is completed,” commented Jock Graham, executive vice president of KOV.

COURTESY OF WIKIMEDIA COMMONS

Kulczyk’s oil company “strikes water,” reports larger gas resources

KOV will have been glad to see the sun set on last week Investors reacted badly to the news, with KOV’s share value dropping 16 percent, from z∏.2.10 at the end of Monday’s trading to z∏.1.76 by the end of Wednesday’s session.

On Thursday, KOV reported positive news on its Ukrainian operations, saying that its total “Net Best Estimate Contingent Resource” had increased by 434 percent from 14.6 billion cubic feet of natural gas to 77.9 billion.

“KOV is of course trying to improve investor sentiment after the initial bad news at the beginning of the week,” said Monika Kalwasiƒska, an industry analyst from brokerage DM PKO. But, she said, “News that the actual resources they have in Ukraine are larger than expected is positive, of course.”

At the end of last Friday’s trading, KOV’s stock price was z∏.1.89, down 9.13 percent on Remi Adekoya the week.

Refining

Orlen’s Q4 profit shoots up The refiner is also deciding on a contractor for a z∏.1.5 billion power plant Poland’s largest refiner, stateowned Orlen, saw its fourth quarter net profit rise by 79 percent y/y on the back of widening refining margins, higher crude oil prices and rising volumes.

The refiner made z∏.541 million in the final three months of 2010, the company wrote in its earnings report, outstripping the z∏.516 million average estimate of analysts surveyed by Reuters. In the same period of the previous year, the refiner netted z∏.302 million.

The improved result was partially attributable to macroeconomic factors including the Ural/Brent differential, which increased by 114.3 percent y/y.

Orlen’s revenues are given an enormous boost when the price difference increases between the cheaper Russian oil (Ural) it refines and the more expensive Brent oil used as a yardstick for the products it retails. The group’s refineries, moreover, were operating at maximum capacity in the fourth quarter, turning in a profit of z∏.610 million.

Nevertheless, Orlen’s troubled Lithuanian arm, Orlen Lietuva, continued to be a weak link for the company, reporting an z∏.88 million loss from operations.

The refiner hired Japanese investment bank Nomura last year to evaluate possible scenarios for Orlen Lietuva concerning its reportedly lossmaking Mažeikiai refinery.

“The final decision will be based solely on business grounds. The company’s management board will be presented with Nomura’s recommendation in late February / beginning of March 2011,” Orlen spokesperson Joanna Puškar said in an e-mail.

Konrad Anuszkiewicz, an analyst at Ipopema Securities, said he believed it would be difficult for the refiner to offload its Lithuanian asset.

“We don’t assume the sale of Mažeikiai,” he said.

Looking ahead, Mr Anuszkiewicz said his brokerage has a “buy” recommenda-

tion on Orlen, and forecast a net income of z∏.1.6 billion for this year. Much, experts say, will depend on how much cash the company can make from the sale of its stake in mobile telecom Polkomtel (see article, p. 6).

Orlen wrote in its report that finalization of the sales process is planned in H1 of this year.

Alongside its results, the refiner said it would make a final decision in Q3 2011 on who will build a proposed 400500 MW gas-fired power plant in W∏oc∏awek.

The investment is expected to cost z∏.1.5 billion and building is due to start next year.

Orlen hopes to have the plant up and running in 2014.

Natalia Kazik, Gareth Price

Oil gulfs Brent/Ural differential ($/bbl), Q4 2009- Q4 2010

2.0

1.8 1.5

1.4

1.5

0.9

1.0

0.7 0.5

0.0

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010 Source: Orlen

www.wbj.pl

19

20

MARKETS

www.wbj.pl

FEBRUARY 14-20, 2011

Stocks report

world stock indices DJIA

NASDAQ

12,229.29 (Feb 10 close)

S&P500

2,790.45 (Feb 10 close)

1.38% (for the week)

FTSE100

1,321.87 (Feb 10 close)

1.26% (for the week)

DAX

6,020.01 (Feb 10 close)

1.09% (for the week)

0.68% (for the week)

A negative week despite Friday uptick

NIKKEI225 7,334.39 (Feb 10 close)

10,605.65 (Feb 10 close)

2.10% (for the week)

1.67% (for the week)

CHANGE: 5.63%

CHANGE: 4.25%

CHANGE: 5.11%

CHANGE: 2.04%

CHANGE: 5.18%

CHANGE: 2.45%

(year to Feb 10)

(year to Feb 10)

(year to Feb 10)

(year to Feb 10)

(year to Feb 10)

(year to Feb 10)

52-week high: 12,254.23

52-week high: 2,798.91

52-week high: 1,324.87

52-week high: 6,091.33

52-week high: 7,350.78

52-week high: 11,408.20

52-week low: 9,614.32

52-week low: 2,061.14

52-week low: 1,010.91

52-week low: 4,790.04

52-week low: 5,454.07

52-week low: 8,796.45

The past week saw all of the WSE’s main indices dip. The blue-chip WIG20 lost 0.56 percent on the week, while the WIG fell by 0.52 percent.

Meanwhile, the mid-cap mWIG40 slipped by 0.36 percent and the sWIG80 index by 0.33 percent. Most of last week’s trading sessions were relatively static with low turnovers.

This was due to global sentiment. As inflation creeps up in emerging economies such as China, investors fear these powerhouses could soon cool down. Fears of such a scenario prompted investors to move their assets to mature markets in the US and Western Europe.

These moves to “safe havens” have affected the WSE in the past, although not as badly as stock markets in Asia or South America.

Friday’s session went bet-

Major indices WIG

47,242.10 (February 10 closure)

WIG20

2,706.01 (February 10 closure)

Change for the week: -0.98%

52-week high: 48,371.02

Change for the week: -1.01%

52-week high: 2,794.58

Change year to February 10: -0.85%

52-week low: 37,322.52

Change year to February 10: -1.77%

52-week low: 2,173.25

2,800

48,500 48,000

2,750

47,500

2,700

47,000

10.02

09.02

08.02

07.02

04.02

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

2,600

10.02

09.02

08.02

07.02

04.02

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

46,000

14.01

2,650

46,500

Top 5 ADVADIS BYTOM WASKO OPTIMUS POLLENAE

Closing 0.26 1.40 3.18 5.85 12.10

% change (week) 52-week high 23.81 0.46 18.64 1.73 16.48 3.25 15.84 6.05 15.02 17.30

52-week low 0.21 0.77 1.37 1.15 10.52

Top 5 PGNIG BZWBK BRE GETIN GTC

Closing 3.85 223.20 318.00 12.97 21.05

% change (week) 3.22 2.10 1.76 1.73 1.40

52-week high 3.91 224.20 325.00 13.25 25.00

52-week low 3.16 168.10 220.10 8.75 20.25

Bottom 5 TECHMEX IRENA KOV CCENERGY PTI

Closing 0.20 1.10 1.89 0.85 10.00

% change (week) -31.03 -15.38 -13.70 -13.27 -11.82

52-week low 0.20 0.65 1.47 0.49 6.51

Bottom 5 PBG ASSECOPOL LOTOS PKNORLEN CYRFPOLSAT

Closing 196.40 50.20 40.49 44.91 15.14

% change (week) -5.12 -4.29 -3.6 -3.40 -2.95

52-week high 252.00 59.80 42.06 49.00 17.30

52-week low 192.00 49.24 25.58 31.45 13.36

52-week high 2.30 5.18 2.40 2.35 12.00

Currency report

Z∏oty slides on global worry

Other indices mWIG40

2,839.80 (February 10 closure)

sWIG80

12,606.71 (February 10 closure)

Change for the week: -1.04%

52-week high: 2,904.35

Change for the week: -0.54%

52-week high: 12,725.55

Change year to February 10: 1.14%

52-week low: 2,230.04

Change year to February 10: 2.92%

52-week low: 10,980.45

3,000

13,000

2,900

12,700

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

12,400

2,800

12,100 2,700

NewConnect

59.55 (February 10 closure)

WIG-Banki

10.02

09.02

08.02

07.02

04.02

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

11,500

10.02

09.02

08.02

07.02

04.02

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

11,800 14.01

2,600

6,807.34 (February 10 closure)

Change for the week: -0.10%

52-week high: 64.09

Change for the week: -0.83%

52-week high: 7,262.73

Change year to February 10: -6.09%

52-week low: 54.64

Change year to February 10: -2.22%

52-week low: 5,440.90

65.0

7,100 7,000

63.5

6,900

62.0

6,800 60.5

SOURCE: WSE

10.02

09.02

08.02

07.02

04.02

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

6,600

10.02

09.02

08.02

07.02

04.02

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

6,700 14.01

59.0

ter than the rest of the week, with the WIG and WIG20 gaining 0.65 and 0.78 percent, respectively. Refiner Orlen released good quarterly results on Thursday causing it to gain 2.2 percent in Friday’s trading. Orlen’s impressively large cash reserves, which could enable it to pay out dividends, makes it attractive for investors.

TVN gained 3.3 percent and KGHM 2.36 percent on Friday’s trading. Petrolinvest also rebounded, gaining 12.6 percent.

On news of Hosni Mubarak finally stepping down as president of Egypt, the price of Brent crude dropped from $102 to $100.50 per barrel. If stability returns to the country, oil prices could drop further, helping out under-pressure commodity and financial markets. ●

Despite the lack of any major macroeconomic news last week, the currency market was very volatile. After a period of increases, stock markets experienced a corrective movement causing risk aversion to increase.

No help came from the US Federal Reserve, with Ben Bernanke defending the QE2 program in front of Congress. The Fed’s chairman stated that unless there is a period of sustained employment increases, the Fed cannot conclude that that the economy is bouncing back.

This was the first time Bernanke referred to employment increases, rather than the employment rate itself. The statement weakened the US dollar and caused the EUR/USD to break the $1.37 level. Worse

global sentiment caused it to slide to $1.35 on Friday.

The deteriorating sentiment in global markets and the further weakening of the euro in relation to the dollar had their roots in growing concerns about the situation in Egypt. Financial markets are worried and until the country achieves some stability, we will be experiencing higher volatility.

Increased risk aversion and the sliding EUR/USD had a negative effect on the z∏oty, which lost value throughout the week. The EUR/PLN advanced to z∏.3.93, its highest level in February (from a weekly low of z∏.3.85). The local currency did not depreciate as much against the dollar (from z∏.2.84 to z∏.2.89), but experienced higher volatility. ●

currency rates 3.5128

3.4524

3.4673

3.4613

3.4819

3.4873

07.02

08.02

09.02

10.02

11.02

11.02

10.02

09.02

08.02

07.02

SOURCE: NBP

3.5

3.0

04.02

11.02

10.02

09.02

08.02

07.02

04.02

0.0993

0.0980

0.0974

0.0973

0.0968

0.0974

2.9979

2.9939

2.9652

2.9819

3.0259 04.02

11.02

10.02

09.02

08.02

07.02

PLN-100JPY

4.0

0.08

2.8

04.02

11.02

10.02

09.02

08.02

07.02

PLN-RUB

0.10

4.6702

4.6234

4.5971

4.5892

4.5921

4.6232

2.9116

4

2.8

PLN-CHF

3.2

2.9713

PLN-GBP

5

2.8795

2.8581

2.8471

2.8438

2.8666

2.9

04.02

3.9370 11.02

10.02

09.02

08.02

07.02

3.8

04.02

PLN-USD

3.0

3.9248

3.8993

3.8742

3.9075

4.0

3.8684

PLN-EUR

4.2

THE LIST

FEBRUARY 14-20, 2011

www.wbj.pl

21

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 moving and relocation companies.

Book of Lists

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

Moving and Relocation Companies Ranked by revenue from moving in 2009 Furniture assembly / Packing / Cleaning / Warehousing

Customs clearance / Cargo insurance / ISO Certificate / Carrier’s insurance

Full time employees / Year founded

Services

Ownership: Polish / Foreign

26

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Relocation services (house and school search; bank account opening; 24h telephone support); immigration services (verification of residence and employment); furniture rental (house, office and event)

46 1990

None Midwest Enterprises International - 100%

Kinga Motyka

4 2

17

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

WND

15 1991

None Interdean - 100%

Bart Behnke

✓ ✓ ✓

54 5

40

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Van rental; relocation packages sale

120 2002

WND - 100% None

Pawe∏ Poradzki

Worldwide

✓ ✓

7 7

21

✓ ✓ ✓ ✓

✓ ✓ ✓

WND

20 1992

Lilla Witasiak - 100% None

Lilla Witasiak

4% -

Worldwide

✓ ✓ ✓ ✓

3 3

6

✓ ✓ ✓ ✓

✓ ✓ ✓

-

6 1997

WND - 100% None

Piotr Grycza

10% 90%

-

Poland and Western Europe

✓ -

3 1

12

✓ ✓ ✓ WND

WND WND WND

-

WND 1995

Tomasz Sidorowicz 100% None

Tomasz Sidorowicz

280 WND WND

55% 35%

10% -

Poland; European Union

✓ -

1 2

5

✓ ✓ ✓ ✓

✓ ✓ ✓

-

8 2008

Katarzyna WandeltBaraniak - WND% WND

Katarzyna WandeltBaraniak

WND WND WND

850 900 950

20% 75%

5%

Worldwide

✓ ✓ ✓

5 1

14

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Relocation services; home search; fine art and antique packing and transport; vehicle registration; office and machine relocation

11 1992

None Mobilitas - 99%; AGS Paris - 1%

Antoine Duquesnay

WND WND WND

WND WND WND

400 445 430

25% 70%

5% -

Worldwide

✓ ✓ ✓ ✓

3 1

8

✓ ✓ ✓

✓ ✓ ✓

The full range of relocation for foreigners (documents, houses and school search, preview trips); transport of pets and vehicles, packing and transport of artwork and antiques

14 1999

None Corstjens International - 100%

Piotr Dmowski

WND WND WND

WND WND WND

WND WND WND

WND WND

WND WND

Worldwide

WND WND WND WND

WND WND

WND

WND WND WND WND

WND WND WND WND

WND

WND 1999

None Crown Worldwide Holdings - 100%

Sherman Pereira

Worldwide

✓ ✓ ✓ ✓

8

✓ ✓ ✓ ✓

✓ ✓ ✓

Door-to-door moves; pet transportation; fine art and antique packing and transportation; work permits; residence permits; visas; orientation visits; house and school search; vehicle registration; document legalization for foreigners

23 2000

WND

Piotr Piekarowicz

WND WND

WND

WND WND WND WND

WND WND WND WND

Pre-relocation visits; school and house express search; work permits; visas; driving licences; bank accounts; 24-hour assistance for clients; registration of vehicles; settling-in services; furniture lease

WND 1999

WND

Anna Buçkowska

5 1

7

✓ ✓ ✓ ✓

✓ ✓

WND

8 1997

WND

Witold Ko∏akowski

Revenue from moving (z∏. mln)

Total Number of revenue relocations (z∏. mln)

2009 / 2008 / 2007

Military / Other

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

Office and industrial / Residential

Rank

Revenue split

Universal Express Relocations Sp. z o.o. ul. Szyszkowa 35/37, 02-285 Warsaw 1 22 878-3500/22 878-3556 office@uer.pl www.uer.pl

10.6 11.4 11.0

12.7 11.5 11.0

1,341 1,215 1,690

WND WND

WND WND

Interdean Sp. z o.o. ul. Geodetów 172, 05-500 Piaseczno 2 22 701-7171/22 701-7177 warsaw@interdean.pl www.interdean.com

6.5 5.7 4.5

WND WND WND

850 770 610

20% 80%

DTS Przyjemne Przeprowadzki Sp. z o.o. ul. Âwiatowa 22, 02-229 Warsaw 3 22 526-1000/22 526-1039 dts@przeprowadzki.pl www.przeprowadzki.pl

6.1 5.4 4.2

11.5 9.3 5.5

1,950 2,080 1,800

Autor Przeprowadzki - Awiator ul. Wysoka 40/42, 90-037 ¸ódê 4 42 678-1611/42 678-1611 biuro@autor.pl www.autor.pl

2.8 2.6 2.7

2.9 2.6 2.7

Alfa & Omega Przeprowadzki ul. Szklarniowa 10, 61-680 Poznaƒ 5 61 863-0001/61 863-0001 przeprowadzki@alfaiomega.pl www.alfaiomega.pl

0.7 0.6 0.4

ZUH Sidor ul. Piastowska 63/7, 50-361 Wroc∏aw 6 71 328-4302/71 328-4302 sidortrans@go2.pl www.sidortrans.com

Areas served

Modes of Own Number transport: vehicles: of moves road / rail / Vans / per week air / sea Trucks

Worldwide

✓ ✓ ✓ ✓

11 2

-

Worldwide

✓ ✓ ✓ ✓

55% 45%

-

Worldwide

1,020 971 989

92% 8%

-

0.7 0.6 0.4

1,400 1,350 1,220

65% 31%

0.2 0.2 0.2

0.5 0.5 0.2

350 400 340

123 Przeprowadzki “Przedsi´biorstwo Transportowe Katarzyna Wandelt-Baraniak” 6 ul. Strzeszyƒska 100, 60-479 Poznaƒ 61 843-9161/61 843-9161 kontakt@123przeprowadzki.pl www.123przeprowadzki.pl

0.2 WND WND

0.2 WND WND

AGS Warsaw Sp. z o.o. ul. Julianowska 37, 02-849 Warsaw NR 22 702-1072/22 702-1077 ags-warsaw@agsmovers.com www.agsmovers.com

WND WND WND

Corstjens Worldwide Movers Group Sp. z o.o. ul. Nowa 23, Stara Iwiczna, 05-500 Piaseczno NR 22 737-7200/22 737-7277 info@corstjens.pl www.corstjens.com Crown Relocations Sp. z o.o. ul. ˚urawia 22, 00-515 Warsaw NR 22 894-5929 warsaw@crownrelo.com www.crownrelo.com Move One Relocations ul. Koszykowa 54, 00-675 Warsaw NR 22 630-8160/22 630-8166 poland@moveonerelo.com www.moveonerelo.com

WND WND WND

WND WND WND

450 420 400

Pro Relocation Sp. z o.o.

Pl. Wilsona lok. 81, 01-626 Warsaw NR 22 839-5338/22 839-0112 office@prorelo.com www.prorelo.com

WND WND WND

WND WND WND

WND WND WND

100% -

-

Poland

✓ ✓ ✓ ✓

Trans-Baga˝ Witold Ko∏akowski ul. Szynowa 27, 03-164 Warsaw NR 22 676-6069/22 676-6069 biuro@trans-bagaz.waw.pl www.trans-bagaz.waw.pl

WND WND WND

WND WND WND

WND WND WND

40% 30%

10% 20%

Poland; Europe

✓ -

5% 90%

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

5% -

3 -

Other

Top local executive / Title

General Director

General Director

President

Owner

Owner

Owner

WND

Director

General Director

Regional Director CEE

Country Manager

Operations Director

Owner

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.

ARTS & CULTURE

www.wbj.pl

Concert

For the love of disco

COURTESY OF GARY MAC

Beginning on Valentine’s Day is a musical performance dedicated to love – the love of music, but also the love of long hair, longer flairs, high notes, towering platform heels and dodgy dance moves.

Now in its 17th year, “Thank You for the Music” is a UK-based show performing ABBA and Bee Gees “magic.”

Take a trip through these acclaimed bands’ hits, including “How Deep is Your Love,” “Dancing Queen,” and “Gimme! Gimme! Gimme! A Man After Midnight.”

You’ll also get a chance to hear songs to which the Bee Gees lay claim as writers, if not with their own pitch-defying

vocals, including “Island in the Stream,” “Heartbreaker” and “Chain Reaction.”

This year the 40th anniversary of ABBA’s formation is being celebrated, and “Thank You for the Music” has accordingly set about to revitalize its production, promising even more by way of the

band’s hits, Travolta-worthy dance moves and a double dose of glitter. ● Tickets can be bought at: www.eventim.pl, www.ticketpro.pl, www.ticketonline.pl, as well as at the box office at Congress Hall and Empik stores. Prices vary.

Photography exhibition

City street through the years

COURTESY OF DOM SPOTKA¡ Z HISTORIÑ

“Krakowskie PrzedmieÊcie from the perspective of Zdzis∏aw Marcinkowski, 1904–1934” Dom Spotkaƒ z Historià through March 6 This photographic exhibition features the most beautiful monuments on one of Warsaw’s most historic thoroughfares, Krakowskie PrzedmieÊcie, as captured by photographer Zdzis∏aw Marcinkowski. Many of the photographs date back to the 20-year interwar period.

Images include the city’s diverse historic palaces, from the Czapski, Radziwi∏∏, Kazimierzowski and Staszic fam-

ilies as well as the churches of St. Anne, Holy Cross and St. Joseph.

Marcinkowski’s photographs present a “subjective, photographic portrait” as well

Imagination jazz mental influences. The band is formed of guitarist Micha∏ So∏tan, Damian Piƒkowski on saxophone, bass guitarist Dariusz Âwitalski and

Art exhibition

Artistic Epiphany You may have noticed the extra day off in January, but you may not have known that it marked the first time in years that Epiphany was observed as a public holiday in Poland. In commemoration of

The Erotic Museum in Warsaw will open its doors on Wednesday, February 9, just in time for Valentine’s Day. “We hope to have around 50 visitors per day,” said Dariusz K´dziora, the museum’s director, who forecasts a surge in popularity around February 14.

A private venture, the museum is entirely comprised of Mr K´dziora’s collection of over 2,000 erotic objects. Although proving reticent when asked to cite specific numbers regarding investment or predicted revenues, Mr K´dziora

and students and seniors are charged z∏.25. Only people above 18 years old will be permitted to enter.

The museum is Poland’s first erotic museum and one of only a few in Europe.

Most of the objects on display are from Africa, Asia and South America.

“Unfortunately there are but few erotic art items in European culture, and in Poland erotic art was completely unknown,” comAT mented Mr K´dziora. said he hoped that revenues from entrance fees should suffice to keep the enterprise afloat.

Regular entrance is z∏.30

Opening hours are every day from 10 am to 10 pm.

For more information: http://muzeumerotyki.com

Concert

Ela D´bska on stage “Ela D´bska Trio” Jazzownia Liberalna Club February 16, 7:30pm Guitarist, actress and acclaimed vocalist Ela D´bska had an early career in opera and film (highlights include work with directors Jan Jakub Kolski and Krzysztof Zanussi) but has since gone on to pursue her latest love: music.

Joining her onstage for her unique mix of original songs and covers are Jacek Kaliszewski (on bass) and Marcel (on drums). Entry is z∏.15. ●

Some content provided by the Warsaw Insider.

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

Museums, galleries and venues in Warsaw

as an intriguing record of the changes undergone in the city.

The exhibition has been made possible through the cooperation of the Warsaw Public Archive. ●

Concert

The Imagination Quartet, with their easy-going style and imaginative melodies, incorporate elements of free jazz as well as more experi-

Erotic museum opens COURTESY OF THE EROTIC MUSEUM IN WARSAW

“Thank You for the Music” Palace of Culture, Congress Hall (Sala Kongresowa) February 14, 7 pm

FEBRUARY 14-20, 2011

COURTESY OF SZYMON ROGIN¡SKI

22

the event, the poetry of T.S.Eliot (his “Journey of the Magi”) and a 14th-century fresco portraying the Three Wise Men in Bethlehem form the centerpiece to an exhibition which also includes works

“Imagination Quartet” Jazzownia Liberalna Club February 15, 7:30pm Maciej Dziedzic on percussion. Their debuit albumn “IQ” is available to sample on iTunes or Amazon.

Entry is z∏.10. ●

“The Journey of the Magi – From Poetry to Visual Arts” Adam Mickiewicz Museum of Literature through March 8 of modern art (including paintings by renowned Polish artist Józef Mehoffer), documentary photography and musical accompaniments. ●

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 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 14-20, 2011

www.wbj.pl

23

Tech Eye

Making the best of bad days

COURTESY OF OLYMPUS

So far we’ve only got four items on our list of bad-day-improving gear, but they’re pretty impressive. The

COURTESY OF BIG ASS FANS

sounding hi-res LCD screen. The SZ-10 launches this March; expect to pay around $250.

Finally, there’s the Isis, which is exactly what it looks like: a mindbogglingly ginormous fan. Its maker, the aptly named Big Ass

The big and the protuberant

first is, quite frankly, the most amazing transforming electric dicycle in the history of Mankind. In case you haven’t guessed already, we’re talking about BPG Motors’ Uno III. While its name is something of a paradox, the Uno III itself makes plenty of sense. At slow speeds, it travels on its two rear wheels; speed up and the middle wheel slips forward, while its vulcanized compatriots shift backward. Some fancy stabilization gear in the bike helps you avoid lunching on pavement as the bike transitions from one mode to the other.

Don’t expect to see t h e

Uno III in a remake of “Easy Rider” – it’s got a top speed of about 35 mph (56 km/h) and a range of maybe 30 miles (48 km). But, don’t forget, it transforms.

The bike will be available next year and pricing isn’t set yet, but we figure it’d be fun to ride around the neighborhood.

Another fancy transformer is the just-announced Kyocera Echo, which appears to be the world’s first dual-screen Android phone.

Honestly speaking, Techeye isn’t sure what to make of it yet. With the exception of the Nintendo DS, we can’t think of a successful dualscreen device.

But naysayers aren’t keeping Kyocera (and its American carrier, Sprint) from touting the Echo’s merits, which include a second-generation Snapdragon processor, a fivemegapixel (rear-facing) camera and its signature 3.5 inch touchscreens, which can be unfolded into one screen or closed up like a normal, single-screen phone.

The final two gadgets on the list are marginally more mundane. Also, don’t try to make them transform, our you’ll end up the proud owner of a broken toy.

On the other hand, Olympus’ new SZ-10 camera, with its protuberant ultra-zoom lens, almost qualifies as a transformer and it’s got sweet technical specs to boot.

Techeye isn’t extremely well versed in camera-speak, but “18x ultrazoom 28-504mm wide-angle lens” sounds pretty impressive and 14 megapixels ain’t too shabby.

The SZ-10 also boasts “new magic art filters” – such as pop art, watercolor and sparkle – which add “special artistic effects in still images and movies directly in the camera.”

Recording a five-year-old’s birthday party?

Why not add some edge to the occasion by throwing on the “punk” filter?

There’s also a 3D function (if you care for that sort of thing), face detection (in case you have trouble detecting faces), in-camera panoramas (meh) and an alright-

Fans, describes it as “the world’s only fan engineered to dramatically improve circulation in large residential spaces such as foyers, lofts, patios, conservatories and great rooms.”

Looking to improve circulation in your aircraft hanger / McMansion / secret volcano base? This is the fan for you.

Isis comes in eight-, nine- and 10-foot diameters and each one costs a few thousand dollars.

They’d be good gifts for corpulent, sweaty types or people looking to cause head trauma to tall relatives.

Techeye doesn’t fall into either category, though. We just think that, after an awful day, it would be amusing to come home and enjoy a Big Ass Fan.

COURTESY OF BPG MOTORS

Two (and III) better than one

The Echo will be available in the US in a few months, at a cost of at least $200 (no news yet on a European release). Even so, we’d suggest waiting awhile after the initial release to see what early adopters think of it.

COURTESY OF SPRINT

Some days make perfect sense. We get up, greet the day with a swig of grandma’s patented breakfast booze, nap at work for a few hours, then head to the local watering hole to convince some wonderfully rich schlep that buying beer for strangers has been clinically proven to cure baldness. (Among conmen, this trick is called “The Hair of the Dog that Drank Me under the Table.”)

But then there are days which make no sense at all, when the phone never stops ringing and somebody steals the cheese out of our cheese sandwich. Or enraged Girl Scouts show up at the door and want us to pay for cookies we ate two years ago. Or Aunt Mertle calls up and says she’s off to Madame Tussauds “to get a Brazilian.”

Lately Techeye has suffered so many days of the latter variety that it seems karmically absurd, even considering all the times we “accidentally” walked our blind cousin into the wall at school. So we’ve decided that for every annoying, senseless day that comes along, we’re simply going to buy a new gadget. Take that, karma.

Ever enjoyed the professional waxing of Madame Tussauds? Let us know: techeye@wbj.pl