WBJ #20 2012

Growth on the menu:

The NBP and Finance Ministry intervene after the z∏oty hits multi-month lows

Polish restaurants are digging in to more business 6

WWW.WBJ.PL

7

VOLUME 18, NUMBER 20 • MAY 21-27, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Dawn in the east

COURTESY OF MEDIADEM CONSULTING

REAL ESTATE

Opportunities and challenges for attracting investment to Poland’s less-developed eastern regions

• New Warsaw mall • Construction woes • Unidevelopement offices 13-18 COURTESY OF THE EUROPEAN PARLIAMENT

10-11

Lech Wa∏´sa has called for a union leader to be “beaten” 4

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Cover Story . . . . . . . . . . . . . . . .10-11 Opinion & Analysis . . . . . . . . . . . .12 Lokale Immobilia . . . . . . . . . . .13-18 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

SHUTTERSTOCK

In this issue

Emergency Grexit?

The possibility of Greece’s exit from the euro roiled markets. Will new elections help?

3

Unstable mixture Russian firm Acron has launched a takeover bid for Azoty Tarnów, raising questions about business and geopolitics

5

2

NEWS

www.wbj.pl

PO ahead in polls

Euro 2012’s ‘Barcelona effect’ During a period of just three weeks, soccer fans and tourists who come to Poland for the Euro 2012 soccer championships will spend an estimated z∏.700 million, said Andrzej Bogucki, member of the board at PL.2012, wyborcza.biz reported.

Mr Bogucki also added that he is counting on the so-called “Barcelona effect,” meaning that soccer fans will return to the country after the championships as tourists. That would bring in an additional z∏.4 billion, he estimated.

IN THE SPOTLIGHT

Numbers in the News

Poland’s Euro 2012 preparedness

COURTESY OF FLIKR/ KANCELARIA PREMIERA

Despite pushing through a hugely unpopular reform to raise the retirement age, Prime Minister Donald Tusk’s ruling Civic Platform (PO) party is still the most popular in Poland with 28% support, according to a TNS Polska poll. Second is the conservative Law and Justice (PiS) party, which is backed by 25% of Poles.

According to various surveys, anywhere from 80% to 90% of Poles were opposed to raising the retirement age.

MAY 21-27, 2012

Prime Minister Donald Tusk declared last week that with less than three weeks to go before the start of the Euro 2012 soccer championships the country is now ready to host the event.

“All the preparations necessary for Euro 2012 have been 100 percent accomplished,” Mr Tusk said at a press conference after being briefed by various ministers, the tournament’s organizing committee and the police.

“Everything that is fundamental to holding a European soccer championship, that is required by the organizers of such an event and that is essential to the comfort and security of visiting football fans has been

duly fulfilled,” Mr Tusk added.

The prime minister went on to say that although great strides have been made regarding infrastructure improvements such as new stadiums, roads, railway lines and improvements to airports, the real benefit to the country will be Poland’s ability to change its image in the world.

“We’ll be showing the whole of Europe and the entire world that Poland is a good place, a place where great things happen, great people live and where it’s worth coming back to,” he said.

And with the eyes of the world set to be firmly fixed on Poland and co-hosts Ukraine

this June, the tournament certainly offers a huge opportunity for both nations to change perceptions.

Earlier in the week, Interior Minister Jacek Cichocki had also declared Poland’s uniformed services ready to deal with numerous potential threats, ranging from problems related to adverse weather conditions to hooligan or even terrorist threats.

But despite Mr Tusk and his ministers’ protestations that Poland is ready, the fact remains that while much progress has been made, one major project remains unfinished – road construction.

Of particular significance is the country’s inability to replace a stretch of the A2 highway that connects Warsaw with the German border. However, Polish newspapers reported last week that the stretch of highway may actually be finished on time, with the government wanting to delay any announcement until they are certain it will be complete.

“I know that everything will be done … to complete the unfinished sections of motorway as fast as possible,” Mr Tusk said.

David Ingham

z∏.15 billion was the amount stock market investors lost when the WIG index slumped on May 17.

4% was the year-on-year inflation rate in April, a slight increase from the 3.9% reported in March.

z∏.397 million was the total amount of fines imposed on businesses by the competition regulator for wrongful or illegal conduct last year. A total of 431 companies were fined.

2.6% was the annual rate of inflation in the euro zone in April, lower than the 2.7 percent seen a month earlier.

Quote of the Week “If I were in Prime Minister Tusk’s position, I would order an attack on the demonstrators to pay them back.”

Nobel Peace Prize laureate and former Polish president, Lech Wa∏´sa tells Radio Zet how he would have dealt with recent protests outside parliament.

Figures in focus High fliers Air passenger transport, 2010, annualized growth in passenger numbers, selected EU27 countries 30 20

On WBJ.pl

10 0

Donald Tusk has criticized his colleague, Civic Platform (PO) party politician Stefan Niesio∏owski, for pushing a journalist’s camera out of the way at a time when the Solidarity labor union was blocking parliament’s exits in a show of opposition towards the controversial reform to the pension system.

Last Thursday was the worst day for Polish stock market investors so far this year, with the bluechip WIG20 index losing nearly 3% on the day due to worries Greece could leave the euro zone, Parkiet reported. As a result the index dropped to its lowest level since August 2009 and approached the psychological barrier of 2,000 points. ●

May/June

Location:

At this conference regional and international entrepreneurs and investors will share their views and experience on building teams, growing companies and going beyond borders.

Warsaw ceed-global.org

28

TRADE & INVESTMENT CONFERENCE

Event:

This conference brings together British and Polish business leaders to discuss the prospects of enhancing investment flows between the two countries and will mark the 20th anniversary year of the British Polish Chamber of Commerce.

Warsaw bpcc.org.pl

Location: Web:

Location: Web:

The forum provides independent, professional and reliable knowledge about the processes that occur on the property market in

Poland. This unique event aims are to share insights and opinions on the functioning of the market over the past year.

Sopot nowyadres.pl

JUNE 1-3 WALLSTREET

Gr ee ce Ire lan d

UK

Company index Acron ..................................5 GDF SUEZ APA Wojciechowski ..........13 Energia Polska ................11

PKP ..................................21 PMR Research..................16

Arla......................................9 Generali ..............................5 AS BioEnergy ....................11 Georyt Solar......................11

PowiÊlaƒski Bank

AXI IMMO ..........................13 Grill & Co. ..........................6 Spó∏dzielczy ......................13 Azoty Tarnów ......................5 Grundfos ............................9 PZL Mielec ..........................6 Bank Handlowy ................10 Hedeselskabet....................9 Real ..................................13

Web:

The conference is the largest meeting of investors in Central and Eastern Europe. This year will mark the event’s 16th consecutive edition and will take place in Zakopane, nestled in the Polish Tatra Mountains.

Zakopane wallstreet.org.pl

11

GEWINN

Carlsberg ............................9 KGHM..................................4 Syntea ..............................11

Event:

The GEWINN Real Estate Conference is a platform for commercial real estate and investments in Central, Eastern and Southeastern Europe – including Russia, CIS and Turkey.

Vienna gewinn.com

Castorama ........................13 LM Glasfiber ......................9

Event:

Location:

28-29 POLISH REAL ESTATE FORUM Event:

ain

Source: Eurostat

ABM Solid ........................16 Fitbit ..................................23 PKO Bank Polski ................6

MAY 24-25 GROWING UP & OUT Event:

Sp

an ia De nm ar k Po lan d Ge rm an y Fra nc e EU 27

-20

DATELINE

Web:

Indices plummet on Greek worries

-10

hu

There is an unfortunate tendency for residents or frequent visitors to Warsaw to visit the Old Town upon their arrival, tick it off their to-do list and then forget about it. Before Euro 2012 tourists invade it for the summer, Warsaw Insider shows why the capital’s Old Town is worth a second look.

Lit

Rediscover the Old Town

PM: Niesio∏owski should apologize

Location: Web:

Bank Polskiej

IKEA ..................................11

Rockwool ............................9

Spó∏dzielczoÊci ................18 Impress ............................13 BASF China ........................5 ING Bank Âlàski ..............10

Selena ................................5

BOSE International ..........13 Jones Lang LaSalle..........16 Sikorsky Aircraft ................6 BZ WBK ..............................7 JYSK ....................................9 SKY Park ..........................13

Termo-Klima MK ..............11

China Development Bank ..5 Meble Agata ......................13 Danfoss ..............................9 Media Markt......................13

Tesco ................................13

Danish Crown ....................9 Neinver Polska ................13 Unibep ..............................18 Decathlon..........................13 Netto ..................................9 Unidevelopment................18 Dong Energy ......................9 Nike ..................................23 Velux....................................9 Eclipse Aerospace ..............6 PBG ..................................16

Vestas..................................9

Energa ................................5 PEPCO ..............................13 Europejskie Centrum

Correction The article “Investing in Central Europe proves attractive for Gulf investors” published on April 30, 2012, misspelled the name of co-author Izabella Szadkowska. WBJ regrets the error.

Peter Nielsen & Partners 6

Warsaw

Gospodarcze ....................16 PGE ....................................5 Stock Exchange ............7,10 First Property Group ........15 Pilkington..........................11 X-Trade Brokers ..........7, 20

NEWS

MAY 21-27, 2012

www.wbj.pl

3

Euro-zone crisis

Greece again takes Europe to the brink The country has called for elections in June amidst fears its plight will lead to the collapse of the euro zone

“Europe will not sink that easily” – Wolfgang Schäube

the determination to keep Greece in the euro zone,” and that if Greece is looking for “stimulus to be pursued for growth in the euro Much will be at stake when Greeks go to the polls on June 17, both for their country and zone, Germany is open to the euro zone this.”

“We want Greece to ‘No more blackmail’ the fact that some two-thirds Many Greek voters seem of Greeks had voted for par- remain in the euro zone. But Alexis Tsipras, the leader of to share Mr Tsipras’s confities who campaigned against it also has to want this and to the Coalition of the Radical dence that Europe cannot the country’s austerity pro- fulfill its obligations. We can- Left, which came in second in afford to allow Greece to go gram. Her Finance Minister not force anyone. Europe the May election with roughly bankrupt and exit the euro Wolfgang Schäuble was will not sink that easily,” he 17 percent of the vote, has dis- zone for fear of a domino more blunt, saying the euro said. The euro zone has missed the German threats. effect. Polls show that more zone would survive if Greece “learned a lot and built Greeks have “already been so than 70 percent of Greeks defenses,” he added. left it. sorely tested that they cannot want to keep the common cur-

SHUTTERSTOCK

New Greek elections scheduled for next month look set to be a test of wills between the country’s anti-austerity forces and the European powerhouse, Germany, which is insisting that Greece fulfill its debtreduction obligations. The June 17 vote could also determine if the country’s future lies in the euro zone or outside, with worrying implications for the currency union itself.

A judge, Panagiotis Pikrammenos, has been appointed as caretaker prime minister of Greece but he will have no power to make political decisions, only to carry Greece into the election.

German Chancellor Angela Merkel’s first reaction to the inconclusive May 6 election in Greece, in which no party won enough support to form a government, was that Greek austerity measures must continue. This despite

be blackmailed further,” said Mr Tsipras.

Ms Merkel is now striking more conciliatory tones, saying in an interview with CNBC that she has “the will,

rency despite their support for the anti-austerity parties. Mr Tsipras is arguing that they can dump austerity and still keep the euro.

Meanwhile, Europe’s volatile financial markets are showing that the risk of contagion from a Greek exit is real, with Spain’s borrowing costs rising last week.

Commenting on the situation, Polish Finance Minister Jacek Rostowski said that “if Greece goes back to the drachma, the European Central Bank should do everything to avoid a domino effect, including buying limitless amounts of the bonds of countries in danger of the market virus.”

Mr Rostowski admitted that such actions might be formally at odds with the ECB’s statute but the unprecedented situation might need “more than standard” actions.

He also voiced doubts about Europe’s readiness for a Greek exit of the currency union. When asked if Europe was ready for such a scenario he replied, “Not yet. And that’s my greatest fear.”

Remi Adekoya

Corruption

Currency

Former PO MP convicted of bribe-taking

Rift in government over euro adoption?

Beata Sawicka, a former MP in the ruling party, has been sentenced to three years in prison for corruption

Ms Sawicka was convicted for accepting bribes to facilitate a real estate deal tions in 2007, a move which was interpreted by some as being motivated by the political calculations of the then-ruling Law and Justice (PiS) party.

That party, many observers said at the time, wanted to discredit its main rival, PO. Many political commentators believe though that the move in fact backfired as Poles sympathized with Ms Sawicka who, in tears, claimed her innocence, saying she had been seduced and manipulated by a CBA agent. Some in PO even accused PiS of fabricating evidence against Ms Sawicka.

PiS spokesperson Adam Hofman is now demanding that PO apologize for the accusations it made. He suggested the apology should read “we apologize to PiS for using [the Sawicka case] politically and changing the result of the 2007 elections with Sawicka’s tears.”

Prime Minister Donald Tusk responded that the only people who deserve an apology are Poles for the fact that “in PO there were people who should never have been in politics as they were not able to abide by elementary ethical standards.”

RA

Polish Prime Minister Donald Tusk and his deputy, Polish People’s Party (PSL) leader Waldemar Pawlak, appear to have differing views on the country’s plans to join the troubled euro zone.

Mr Pawlak, who is also Poland’s economy minister, said at the European Economic Congress in Katowice last week that, “It is worth considering whether or not to go back to the concept of creating a new euro, a transaction currency which would be based on national currencies.”

“That would be half a step backwards and two steps forward as all the EU countries would be covered by the transaction currency,” he added.

The deputy PM added that Poland had weathered the crisis well due to its national currency, which made its exports competitive.

These statements from the number-two man in the Polish

COURTESY OF THE EUROPEAN PARLIAMENT

REPORTER

A Warsaw court ruled last week that former Civic Platform (PO) MP Beata Sawicka accepted z∏.100,000, a diamond-encrusted pen and alcohol in 2007 in exchange for facilitating a real estate deal that was staged by agents from Poland’s anti-corruption agency (CBA). The court said that in return for the bribes she had agreed to assist a company in securing land worth z∏.3 million in Hel, a Polish town on the Baltic coast.

Hel’s mayor, Miros∏aw Wàdo∏owski, received a twoyear suspended sentence for accepting z∏.150,000 in bribes over the deal. The court said that since he “didn’t demand the bribe” he should receive a lighter sentence.

Ms Sawicka and Mr Wàdo∏owski were approached in 2007 by two men from CBA posing as businessmen interested in land.

They were arrested just before the parliamentary elec-

Prime Minister Donald Tusk and his deputy Waldemar Pawlak are sending mixed signals

Donald Tusk government raised questions about whether Poland is still interested in joining the euro zone.

The prime minister addressed the issue while on a trip to Canada.

“Poland is still ready to join the euro zone despite the fact that its reputation has been strained. When we acceded to the European Union, we declared our readiness to adopt the common currency,” he said.

He added that in his government’s opinion, the EU

Waldemar Pawlak “must continue economic and political integration and one of those elements of integration should decidedly be a common currency.”

However, Mr Tusk added that such a currency union “makes sense only when there are also common rules and when those rules are observed by all members of the union.”

Poland has said that it will have fulfilled all the criteria required to join the euro zone by 2015, without giving a specific date as to when it would actually join. Remi Adekoya

4

NEWS

www.wbj.pl

MAY 21-27, 2012

Foreign affairs

Polish Prime Minister Donald Tusk was in Canada for a threeday visit last week, during which he and his counterpart agreed to expand their countries’ energy partnership, with a particular focus on shale gas.

“As responsible governments we must care for energy security from the strategic perspective of both Canada and Poland,” Mr Tusk told reporters after a private meeting with Canadian PM Stephen Harper in Ottawa. “The exploration and production of shale gas seems to be absolutely crucial.”

Canadian firms’ technical know-how in extracting shale gas, missing in local companies, is of particular interest to Poland. Among the companies that have obtained a concession for exploring shale gas deposits in Poland are Canadian firms, noted Mr Tusk.

But the agreement is much broader and encompasses unconventional oil and gas resources and their regulation, low-emission technologies,

nuclear and renewable energy, as well as energy efficiency.

“Among other things, we can expect this to mean intensified work together over the coming months in support of the accelerated and responsible development of unconventional oil and gas resources in Poland,” Canada’s ambassador to Poland Daniel Costello told WBJ. “Our visit to KGHM International’s recently acquired Craig Mine near Sudbury offered a clear look at the concrete benefits of such closer economic cooperation that may well serve as an example for expanded two-way trade and investment in days ahead,” he added.

In order to boost bilateral investment and trade, Canada and Poland also signed a new tax agreement that will lower the maximum rate of withholding tax imposed on dividends paid between companies and on interest payments. Trade between the two countries is already growing, reaching nearly 1.7 billion Canadian dollars in

2011, an almost 40 percent yearly increase.

The expected signature of the Comprehensive Economic and Trade Agreement between Canada and the EU this year is also set to further facilitate investment, services, regulatory cooperation and mobility.

Travel for Poles has been greatly expedited with Canada’s decision in 2008 to abolish visas, a move for which Mr Tusk also thanked Mr Harper. Exclusion of Polish nationals from the US Visa Waiver Program continues to be a major sticking point for Poles in their relations with Canada’s southern neighbor.

Mr Tusk seemed deeply touched by his visit to Wilno, the site of Canada’s first Polish settlement in 1858. Original settlers there were Kashubian Poles from the region around the PM’s own hometown of Gdaƒsk, and he later said his visit “made me want to cry.”

The visit was the first by a Polish prime minister to Canada in over two decades, as Mr Tusk’s original plans to visit in 2010 were disrupted by the Smolensk disaster.

Alice Trudelle

DAILY EXECUTIVE DIGEST Poland A.M. gives you the biggest Polish stories of the day.

Have the most valuable news delivered to your inbox each weekday morning.

Prime Minister Donald Tusk (right) visited KGHM’s recently acquired mine in Canada

Wa∏´sa: Solidarity union leaders ‘deserve a beating’ Lech Wa∏´sa, one-time leader of the Solidarity trade union and winner of the Nobel Peace Prize, has said that members of the trade union deserve to be beaten for holding a protest outside the Polish parliament earlier in May. Solidarity members gathered outside the Polish parliament over a period of several days in protest at a law to increase the retirement age to 67 for men and women. On the last day of the picketing, when the law was passed in the lower house of parliament, Solidarity members prevented some politicians from leaving the building and a scuffle broke out.

“If I were in Prime Minister [Donald] Tusk’s position, I would order an attack on the demonstrators to pay them back,” Mr Wa∏´sa, a former president of Poland, said in an interview with Radio Zet. “Authority must be respected and chosen wisely. You should go to the polls, organize yourself. But once lawmakers are chosen, they must be respected.”

COURTESY OF THE EUROPEAN COMMISSION

Bilateral trade should also get a boost from a new tax agreement and an upcoming comprehensive economic treaty between Canada and the EU

COURTESY OF KPRM

Poland, Canada to cooperate on energy

Nobel Peace Prize laureate Lech Wa∏´sa Monika Olejnik, the journalist interviewing Mr Wa∏´sa, asked, “A Nobel Peace Prize laureate, a former leader of Solidarity, would beat the leader of Solidarity?”

“As a prime minister, I would have the right to do it,” Mr Wa∏´sa replied.

He also added that he would single out current Solidarity leader Piotr Duda for a beating.

“I would do it myself. I would beat him for not being able to wisely arrange political relations in a free Poland.”

Gareth Price

Polish health system in poor shape: report

S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l

The Polish health-care system ranks a lowly 27th out of 34 in Europe, according to the latest European Consumer Health Index.

The organization based the ranking on a number of criteria, including: patient rights and access to information, waiting times for treatment, effects of treatment, prevention and scope of serv-

ices and access to medication.

“Poland definitely needs a complete reform of its health sector,” Arne Björnberg, head of the team that prepared the report, told Puls Biznesu.

He pointed to the medical insurance system and a deficit of modern drugs as being two key problem areas that need to be tackled immediately.

Poland fares most poorly when it comes to time spent waiting for treatment and access to drugs.

In total, Poland scored 577 points out of 1,000, falling one place since last year’s ranking.

In the CEE region, the Czech Republic received the best ranking, coming in 15th place out of the 34 countries.

RA

BUSINESS

MAY 21-27, 2012

Polish business in China

Russian firm makes bid for Azoty Tarnów

But China won’t wait, and to cash in on this unique opportunity, Poland must act fast, said experts and business leaders who gathered at the Europe – China Economic Cooperation Forum at the European Economic Congress in Katowice last week.

“We are dedicating a $10 billion credit facility to support investment projects. We hope the Polish government and enterprises present projects

COURTESY OF FLIKR/PREZYDENT.PL

But Azoty shareholders were unimpressed with the offer

Bronis∏aw Komorowski (left) and Hu Jintao, general secretary of the Communist Party of China pean Union Chamber of Commerce in China, leading Joerg Wuttke, chief representative of BASF China and chairman of the Business and Industry Advisory Committee to the OECD for the China Task Force, to say that “European business platforms in China are completely underutilized

by Polish companies. It’s like they want to reinvent the wheel.”

There is a “before and after” President Komorowski’s visit to China, and it’s important to get traction and not lose momentum, he added.

“The Polish business community must get its act together, because China is an absolute must for an engineer-based economy like Poland.”

that will meet interest of Chinese companies and we can finance that,” said Lu Zhongqiang, commissioner at the China Development Bank.

“China will not wait for anyone because all companies are going there,” said Krzysztof Domarecki, president of the supervisory board of Selena, a Polish manufacturer and distributor of construction chemicals which has been present in China since 2009.

Challenges for Polish companies to establish themselves in China are no different from those faced by other European firms. The difference is rather between big and medium-sized companies, Mr Domarecki explained, with Polish companies mostly falling into the second category.

Selena is currently the only Polish member of the Euro-

Alice Trudelle

Log on to WBJ.pl for an extended version of this article.

Court upholds decision to block PGE-Energa merger rejected on the grounds that it would increase PGE’s already dominant position in the power generation market. The government has not said whether it would walk away from the deal.

PGE also reported last week that its first-quarter net profit rose 27 percent on the

COURTESY OF ENERGA

A court has rejected a request from Poland’s largest utility, state-owned PGE, to overturn a decision by the competition regulator to block its z∏.7.5 billion takeover of smaller statecontrolled rival Energa.

The tie-up, which the state had hoped to complete as part of its privatization plan, was

Energa remains out of reach for state-owned giant PGE

year to z∏.1.53 billion. The firm said in a statement that the commissioning of a new 858 MW power generation unit in the Be∏chatów Power Plant helped it generate 10 percent more energy than in the corresponding period of 2011. Overall electricity generation in the Polish market grew by just 0.5 percent.

The company also recorded a 9 percent rise in revenues to z∏.7.91 billion and a 23 percent increase in operating profit to z∏.1.82 billion.

PGE, which is overseeing Poland’s nuclear energy program, announced last week that it plans to launch a tender for the technology supplier for Poland’s first nuclear power plant before the end of June.

Construction on the first of Poland’s planned two nuclear plants should start at the turn of 2015 and 2016. The combined operational capacity of the plants will be 6,000 MW. Gareth Price

Russian fertilizer maker Acron has bid to buy up to 66 percent of Polish chemical firm Azoty Tarnów for z∏.36 a share.

Jerzy Marciniak, president of Azoty Tarnów and a shareholder in the firm, said that in his opinion, the offer is too low.

“Having creditworthiness of z∏.1.5 to z∏.2 billion and revenues of z∏.7 billion, we can afford to develop independently,” he was quoted by Reuters as saying.

Poland’s Treasury also has shares in Azoty and Deputy Treasury Minister Rafa∏ Baniak told the Polish Press Agency that the offer is “below expectations.” Pawe∏ Wróbel, the representative of another shareholder, the Generali pension fund, said “the price proposed is not attractive from our point of view.

“The offer is a surprise and such an acquisition would have a significant effect on the mar-

ket,” said Jerzy Majchrzak, a director at the Polish Chamber of Chemical Industry (PIPC).

“Can our fertilizer producers – which are very dependent on gas prices – be sold to the Russians? This is an issue not just for our market but for the whole EU market.”

Mr Majchrzak said the chances were “less than 50 percent” that the offer would be accepted, and that he expected a better offer could be made, if not by Acron then by another

firm from the east.

Regarding specific effects of the potential takeover on the Polish chemical and fertilizer market, Mr Majchrzak said it depended on the strategy of the buyer and if a Russian owner would gain preferential gas prices, for example.

The offer runs from June 6 through June 22. Acron said in a statement that its offer price is 12.1 percent above Tuesday’s close.

Remi Adekoya

SHUTTERSTOCK

Polish firms must get their act together to take advantage of the momentum created by two recent high-profile visits by Polish and Chinese leaders

Get to work

5

Chemicals

A small window of opportunity

Following a visit by Polish President Bronis∏aw Komorowski to China last year and a return trip by Chinese Premier Wen Jiabao to Poland, significant momentum has been generated for the development of Polish-Chinese business ties.

Bilateral trade and business opportunities abound, as well as potential funding for new initiatives and investments.

And although entering the Chinese market is expected to be more difficult than the other way around, Polish firms can count on an established support network for European businesses.

www.wbj.pl

Azoty Tarnów is a major fertilizer producer

6

BUSINESS

www.wbj.pl

MAY 21-27, 2012

Aviation

Polish restaurant sector turning the corner

PZL Mielec to produce parts for Eclipse 550 jet aircraft

The food-service market is set to grow by 4.6 percent in 2012

SHUTTERSTOCK

Poland’s restaurants are set for strong growth this year, according to a new report. But even though that may mostly be due to the Euro 2012 tournament this summer, restauranteurs say the beginning of the year has already turned out better than average.

The report, by research firm PMR, estimates growth

of some 4.6 percent for the industry this year.

“Significant network investments in hospitality and catering, along with the improved [financial] situation have slowly brought the first signs of an economic upturn,” wrote PMR analyst and author of the report, Jaros∏aw Frontcza.

Promotional campaigns, along with the large numbers of supporters, visitors and tourists, will have a significant

impact on the amount of people eating and drinking at Poland’s restaurants, the report found.

Anna Krasowska, manager of Warsaw restaurant Grill & Co., said her restaurant has already seen things pick up, with a particularly good first quarter of the year. “Indeed, we noticed an increase in turnover of around 15 percent.

This is certainly due to the good weather,” said Ms Krasowska.

“We also expect to increase turnover from the sale of beer and alcohol during Euro 2012,” she added.

Last year proved to be a breakthrough year for Poland’s food-service sector, which saw growth for the first time since the start of the financial crisis. In 2011 the sector grew by 0.8 percent and was valued at z∏.18.3 billion.

“Factors that positively influenced the growth in turnover were improving consumer sentiment, especially in the first half of 2011, more favorable weather conditions than in 2010 and no adverse sales issues (floods), which strongly affected retail trade in Poland the year before,” Mr Frontcza added in the report.

The food-service sector was worth z∏.18.3 billion in 2011

David Ingham

COURTESY OF AOPA.ORG

Gastronomy

The Eclipse 550 jet can reach speeds of 700 km per hour

The first Eclipse 550 with Polish components will be ready in 2013 Poland’s biggest aircraft producer, PZL Mielec, has signed a contract with Eclipse Aerospace, Inc., to produce components for the Eclipse 550 jet.

PZL Mielec, which is owned by Sikorsky Aircraft, is to produce components including the fuselage, empennage and wings for the jet.

The components will be manufactured in Poland and then shipped to Eclipse’s facilities in Albuquerque, New Mexico, where they will be assembled and delivered to customers.

“Sikorsky is proud of our ability to utilize world class

facilities such as PZL to lower the overall cost of supply chain components and manufacturing for the Eclipse Jet,” Shane Eddy, vice president, global supply chain for Sikorsky Aircrafts, said in a statement.

Micha∏ Tabisz, a spokesperson for PZL Mielec, told WBJ that Eclipse Aerospace chose PZL Mielec due to the “high quality” of its products.

Mr Tabisz added that other reasons included PZL’s long experience with aircraft production, its modern factory and relatively low costs.

“The signing of the PZL Eclipse 550 airframe contract is another major milestone in our production path,” Mason Holland, CEO of Eclipse Aerospace, said in a statement.

“Utilizing the world class facilities of PZL Mielec in the production of our airframe components is huge for Eclipse.

Their proven facilities and experience will further accelerate our efforts while reducing production start up risk,” Mr Holland added.

Eclipse 550 is a light, twinengined civilian jet aircraft which can reach speeds of up to 700 km per hour.

Mr Tabisz said that the company will start production this year.

“The first components of the Eclipse 550 will be produced before the end of this year,” he said. “Eclipse Aerospace plans the first deliveries of the Eclipse 550 in 2013.”

Izabela Depczyk

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

Immigrants may have their Polish citizenship reinstated

Speeding up criminal proceedings

On May 15, certain provisions of the new Act on Polish Citizenship became binding.

The entire Act will become binding on August 15. The Act stipulates the rules, conditions and procedures for acquiring and losing Polish citizenship, its confirmation and confirmation that it has been lost.

It also states which authorities are competent on these issues.

The Act allows for the reinstatement of Polish citizenship at the request of Polish immigrants who lost their Polish citizenship before January 1, 1999. Moreover, the Act significantly changes and strengthens the institution of the recognition of a person as a Polish citizen.

In the process of acquiring Polish citizenship, it won’t be possible to request that a foreign applicant surrender his or her previous citizenship. As to recognition of a person as a Polish citizen, the provisions of the Act considerably broaden the possibilities of acquiring Polish citizenship by virtue of a voivod’s decision, since it introduces a new list of cases under which foreigners can be recognized as Polish citizens.

On May 9, the government accepted the draft Act on Changes to the Criminal Procedure Code Act which is designed to speed up and improve criminal proceedings. The proposed changes limit the conditions under which persons can be arrested temporarily, reduce the number of documents that need to be delivered to a court in relation to criminal cases and shorten certain court proceedings.

Unfair termination of an employment contract On May 16, the Supreme Court adopted a resolution relating to the unlawful termination of an employment contract connected with the dismissal of a management board member at an unnamed company. The employee had been dismissed from the board on the basis of relevant provisions of the Commercial Companies Code. In the opinion of the court, it was unlawful that the employee was dismissed from the company at the same time and for the same reasons as he or she was dismissed from the board. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Banks

PKO BP’s net profit grows in Q1 But uncertainties surrounding Greece mean the lender won’t be making a forecast for full-year 2012 Poland’s largest bank, PKO Bank Polski, reported a net profit of just over z∏.1 billion for the first quarter of 2012, a year-on-year rise of 15.4 percent. Although the growth was impressive, it is slightly lower than analysts polled by Reuters had expected.

The result was earned primarily on the back of an increase in assets and interest margins, the bank said in a statement. The value of its assets increased by 9.9 percent y/y.

Analysts are expecting PKO to generate a profit of over z∏.4 billion for the whole year. However, PKO itself is not releasing full-year forecasts due to uncertainties in the euro zone and weakening demand for loans.

“We will have the best

result in the Polish banking sector, but whether this will be X or Y, we will see in several weeks,” chief executive Zbigniew Jagie∏∏o said last week, Reuters reported.

“In a few weeks we will see events that may have a significant impact.”

Demand for consumer loans at Poland’s largest bank has fallen sharply, with growth in a number of loan segments expected to slow this year (see graph).

“Now we can be concerned about the worsening situation

in the small and mid-size corporate sector,” said deputy chief executive Bartosz Drabikowski. “In the remaining segments we can speak about stabilization. The pace in corporate loans and mortgages determines credit growth.”

According to Parkiet, which cites unnamed sources, PKO BP is getting ready to sell its eService subsidiary, which has an estimated value of between z∏.512 million and z∏.683 million. The bank itself declined to comment.

Gareth Price

Softening loan demand PKO BP's loan growth, 2009-2012 (in %) 20

Total Loans

15

Institutional entities Retail Mortgages

10

Consumer Loans 5

* Forecast

0 -5

2009

2010

2011

2012* Source: PKO BP

FINANCE & ECONOMICS

MAY 21-27, 2012

www.wbj.pl

7

Currency

Turmoil in Greece is roiling currency markets – and the country’s exit from the euro zone could make things worse Poland’s Finance Ministry stepped into currency markets last Wednesday, selling foreign currency after the z∏oty fell sharply earlier in the week.

“After selling some currencies at the National Bank of Poland, we’re taking advantage of the z∏oty’s weakening to sell currencies in the market,” the Wall Street Journal quoted Piotr Marczak, the ministry’s debt department director, as saying.

An official from the NBP said later in the week that the bank is able to step into the z∏oty market at any time. Events in Greece have hit the z∏oty hard. Last Monday, it hit its

lowest point against the euro since January, dropping 1.4 percent. It also fell 2 percent against the dollar. Moods were still sour on Tuesday and Wednesday, though they improved somewhat Wednesday afternoon after positive current account data for Poland was released. Though the z∏oty weakened to as much as z∏.4.4 to the euro on Wednesday, it had recovered somewhat to z∏.4.344 by Thursday morning.

Greece in turmoil Relatively good recent macroeconomic data and the previous week’s interest-rate rise by Poland’s Monetary Policy Council would normally have contributed to z∏oty strength.

But analysts agreed the main factor behind the fall was the political turmoil in Greece, which drove up risk aversion and dampened appetite for emerging-market currencies.

COURTESY OF THE EUROPEAN PARLIAMENT

Z∏oty tumbles, Finance Ministry steps in

Mr Rostowski said Greece’s pullout from the euro zone would cause the z∏oty to weaken significantly but only temporarily “As an emerging-market currency the z∏oty is always more affected by external factors than major global currencies,” said Adam Narczewski, an analyst at X-Trade Brokers.

Poland’s current account, trade deficits narrowed in March Poland’s current account deficit shrank significantly in March, from €1.516 billion in February to just €228 million, marking the lowest current account deficit since May 2011. The market had expected a decrease, but on a much smaller scale – the median forecast had been about €1 billion.

A higher level of exports and lower imports led to a nar-

rowing of the trade deficit to €399 million, a key factor behind the narrower c/a deficit.

Exports reached €12.9 billion, showing growth of 5.9 percent y/y. That was only a small slowdown from February, surprising analysts after a significant slowdown in industrial production in March.

Imports were lower than expected (€13.3 billion against a median market forecast of

€13.5 billion), with growth decelerating from 6.9 percent y/y in February to just 3.3 percent in March, likely reflecting weakening domestic demand.

“In coming months we expect further deceleration of exports and imports amid weaker demand from the EU and weaker condition of Polish consumers amid slower pace of employment growth,” said AK BZ WBK analysts.

“Because of increased chances of Greece leaving the euro zone, risk aversion has increased dramatically and capital is escaping from riskier markets,” he added.

Concerning Greece’s possible pullout from the euro zone, Finance Minister Jacek Rostowski waded into the fray, telling TVN24 that an uncontrolled exit would cause the

z∏oty to weaken “significantly,” but only temporarily. The z∏oty would rebound once investors’ concern wanes, he said.

Mr Narczewski agreed that the z∏oty could lose significantly on a Greek exit from the euro zone, “even to the 4.50 level against the euro,” but expected the resulting weakness could be a longer-term problem.

“Since the recovery from such an event will take time, I do not think the z∏oty would regain value quickly. … If Greece exits the euro zone, it will be an event that has never happened before and it is very difficult to judge or predict what will happen – not only to the z∏oty but also to other financial markets and economies,” he said.

By press time Friday the z∏oty had lost more ground, to z∏.4.37 against the euro and z∏.3.44 against the dollar.

Andrew Kureth

CPI sees slight rise The year-on-year CPI inflation rate in April increased to 4 percent from 3.9 percent in March, coming in slightly above the market consensus.

Even though the market had expected no change, analysts had also kept in mind that recent gas-price hikes could push the inflation rate up.

“Energy prices increased sharply in April (by 1.3 percent

m/m) due to implementation of a new gas tariff, fuel prices rose significantly as well (by 1.2 percent m/m),” Bank Zachodni WBK analysts wrote in a report.

Clothing and footwear prices also came in higher than expected, though there was a significant drop in food prices.

Earlier this month the National Bank of Poland raised the headline interest

rate by a quarter-point to 4.75 percent, citing stubbornly high inflation. According to the Ministry of Economy, the year-on-year inflation rate in May is expected to reach 3.8 percent, returning below the 4 percent mark.

Analysts expect CPI to slow down in May, but come back to around 4 percent during the GP, AK summer.

More for less Consumer Price Index inflation rate y/y, April 2010-April 2012 (%)

Media patronage

6.00

WallStreet Conference – a perfect opportunity to meet capital market investors and analysts

4.75

3.50

2.25

The WallStreet Conference is the biggest meeting of individual investors in Central and Eastern Europe. This year marks the 16th edition of the WallStreet Conference, which will be held from June 1 to 3 in the Hotel Mercure Kasprowy in Zakopane.

The event has gained in popularity every year, and this is reflected in the everincreasing number of attendants. This year’s conference will have over 800 participants.

As most guests are active capital market investors who are fascinated with the market, the conference is a perfect opportunity to discuss the Warsaw Stock Exchange with fellow investors and analysts. It also allows participants to learn about the current trends in the market as well as to answer questions such as whether the WSE is suitable for earning fast money, what to invest in this year, whether daily tracking of the

WSE translates into higher profits, or how to invest safely in the WSE. The conference is also a perfect opportunity to participate in a number of lectures and panel discussions, which will cover the financial market, investment risk, the stock exchange and the perspective for future growth.

Additionally, this edition will host a special guest, world-famous stock trader Birger Schäfermeier, who will lead the “How to earn €50,000 risking just €600” lecture.

Preceding the conference there will be an event called the New Market Day, which will be devoted to NewConnect, the WSE’s alternative exchange. It will include a presentation of companies which are planning to debut on the NewConnect. For those who are not able to participate in the meeting, the event will be broadcast online. ●

Ap r. '1 0 Ma y '1 0 Jun . '1 0 Jul . '1 0 Au g.

'10 Se p.

'10 Oc t. ' 10 No v. ' 10 De c.

'10 Jan . '1 1 Feb . '1 1 Ma r. '1 1 Ap r. '1 1 Ma y '1 1 Jun . '1 1 Jul . '1 1 Au g.

'11 Se p.

'11 Oc t. ' 11 No v. ' 11 De c.

'11 Jan . '1 2 Feb . '1 2 Ma r. '1 2 Ap r. '1 2

1.00

Source: Central Statistical Office

Wages and employment growth disappoints Private sector wages and employment grew by less than expected in April, pointing to softening economic activity in Poland.

Average employment in the private sector rose 0.3 percent year-on-year, and fell 0.1 percent month-on-month. Analysts polled by Reuters had forecast annualized growth of 0.5 percent. Average wages in the private sector meanwhile

also disappointed the market, slowing to 3.4 percent y/y and falling 1.3 percent m/m. The market had expected annualized growth of 3.9 percent.

“These figures confirm the deterioration of domestic labor market conditions, probably reflecting stalling economic activity in [the private] sector,” Bank Zachodni WBK analysts wrote in a report.

They expressed particular

disappointment at the monthly fall in employment, since an improvement is usually seen in April due to seasonal factors.

The “lower pace of personal income growth will support … the weakening of private consumption and will further diminish the risk of future inflation. Data confirm that any further tightening of monetary policy is unjustiGP fied,” BZ WBK wrote.

8

INTERVIEW

www.wbj.pl

MAY 21-27, 2012

Denmark in the EU

Thomas Østrup Møller, Denmark’s outgoing ambassador to Poland, talks to WBJ about the priorities of the Danish presidency of the Council of the European Union, the debate over the EU budget and economic relations between Denmark and Poland Ewa Boniecka: Denmark started heading the Council of the EU at a time of financial crisis in Europe. Do you think that the euro zone could collapse?

Thomas Østrup Møller: Theoretically anything is possible but I do not believe it will happen. So far the EU has proved to be able to agree and proceed with a number of measures aimed at overcoming the crisis. The gloomy picture when we took the presidency was brightened by the fact that euro-zone members have shown themselves to be capable of working together. By this I mean that we agreed on the fiscal pact in record time and it now only remains to be ratified. I believe that it will be ratified and it needs 12 members of the euro zone to do this before it enters into force. This has been a good signal to the markets. We have also managed to build an aid package for Greece. However, we can

observe that the situation in Greece is rather dynamic.

Now with the uncertainty following the elections the situation is again becoming more challenging.

As president, Denmark is also charged with overseeing the crucial issue of the next EU budget. Why are you demanding that some of your payments to the 2014 -2020 budget be reduced?

I think that you refer to comments made by some of my colleagues in Brussels about our wish to obtain some reductions to our payments to the EU budget. However, at this stage, as holders of the presidency, our job is to reach compromises over the budget. We do have a Danish position but we are not going to raise that matter now.

As president we are now doing whatever we can to push forward the budget proposed

by the EU Commission. This will be presented to Europe’s governments and heads of state in June. At that time we, as president, want to present a package of negotiations concerning the most important issues. We do not know how it will be received, but we are giving it a very high priority in our work schedule. And I want to stress that the fact we are holding the presidency means that we are not promoting Danish interests, but instead looking at the budget from the perspective of every member.

Do you think that at this time of crisis, current cohesion and structural policies will be maintained?

Yes, because we have not reached a situation where the budget would be drawn only in black or white colors. I think that we will have a very substantial structure dealing with cohesion policy in the next budget.

But concerning the amount of money provided for the EU budget, there are two schools of thought. One says that we have to think about imposing austerity through the EU budget, because we were using

funds beyond our means. So if all national budgets are to be cut, the same must be applied to the EU budget. The argument goes: Why should domestic tax payers be under pressure from some governments who demand that the EU budget be increased.

The other school says that the EU budget should not be compared to national budgets.

The EU budget is used to invest in countries’ futures and to keep the political process of European integration running.

Those who support these two schools of thought are now negotiating within the EU to find a compromise between them. I will say that while the cohesion policy will be preserved, I don’t know the amount of money that will go into the budget.

How do you see the chances for reaching a compromise on the EU Commission’s proposal to reduce CO2 emissions by 30 percent by 2020?

The climate policy is a horizontal issue and it has been discussed for a long time. A green Europe is one of the priorities of the Danish presiden-

COURTESY OF LARS GRUNWALD

A challenging presidency

Ambassador Møller says climate policy is a “crucial” issue cy and we had hoped that we would all be able to agree on the conclusions of the EU Commission to significantly reduce CO2 emissions by 2020.

But it has not been a suc-

cess. Poland decided not to join the other 26 members on that matter. But I want to point out that nobody expected a decision on emissions reductions to be reached the

SUBSCRIBE FOR 1 YEAR AND SAVE UP TO 50% OFF THE COVER PRICE Choose one option by checking the box

❏ WBJ IS NOW AVAILABLE IN DIGITAL FORMAT. READ WBJ AS A PDF OR E-ZINE.

OPTION 1

WBJ Electronic

Wa Warsaw Business Journal PDF version and a link to view WBJ in e-zine format delivered to your e-mail address each week for 12 months. for Everywhere: zł.424

❏

OPTION 2

WBJ Print

ENQUIRIES A M IC HA L I K @ VA L K EA .C OM, O R C A L L +4 8 ( 2 2 ) 6 7 8-9912

In Europe: €297

OPTION 3

Outside Europe: €374

WBJ Premium

Warsaw Business Journal print edition delivered each week to your address for 12 months, plus WBJ PDF version and a link to view WBJ in e-zine format delivered to your e-mail address each week.

Also receive Investing in Poland 2012 (zł.78 value) and Book of Lists 2012 (zł.100 value).

In Poland: zł.691

Warsaw Business Journal print edition delivered each week to your address for 12 months, plus receive Investing in Poland 2012 (zł.78 value) and Book of Lists 2012 (zł.100 value).

In Poland: zł.550

❏

In Europe: €330

Outside Europe: €407

Please fax this form to: +48 22 639 85 69 or mail it to our office: Subscriptions Warsaw Business Journal Valkea Media S.A. ul. Elblàska 15/17, 01-747 Warsaw, Poland

CLIENT DETAILS

PAYMENT OPTIONS (please check one)

Name ......................................................................................................................

Company ......................................................................................................................

Address ......................................................................................................................

Postal code ......................................................................................................................

City ......................................................................................................................

Country ......................................................................................................................

Telephone/Fax ...................................................................................................................... e-mail ......................................................................................................................

NIP (Poland)/EU VAT number (EU countries) ......................................................................................................................

❏ Pre-payment by bank transfer upon receipt of a pro-forma invoice. The pro-forma invoice will be sent to you immediately upon receipt of your order.

Your subscription will start within one week of payment. ❏ Credit card: ❏ American Express

❏ Visa

❏ Mastercard

Cardholder name ......................................................................................................................

Number ......................................................................................................................

CVV2/CVC2/CID

Expiration date

....................................................... ............................................................

Signature ......................................................................................................................

INTERVIEW

MAY 21-27, 2012

next morning, so we are open to further talks with all members. The matter is crucially important because it is about the course we want to take in Europe in the long term. So we need a common agreement to be reached because when we have to take decisions about investment in the field of energy in Europe, we need predictability.

The energy industry is asking for predictability. Investments in energy infrastructure are very expensive and it is the kind of investment for which you have to be sure of what you are doing. There are many factors involved: controlling the supply of energy, making Europe less dependent on supplies from outside the EU, developing renewable sources of energy and fulfilling international obligations concerning climate policy.

So I do recognize that there will be lots of issues which need to be discussed. We have to take into account that we have different structures of energy production and supply in different EU countries and I understand that Denmark and Poland are not alike in this sense. I know that it is a big problem for Poland to shift to a carbon-neutral economy when 90 percent of its industry is dependent on coal. Yet as holders of the presidency we are convinced that we have to put together an energy policy and I am sure that eventually we will be able to reach a set of common conclusions.

I do not see the present confrontation as a clash of philosophies and I think that we would all agree that we have to accept a mixture of energy production processes, but with an emphasis on reducing pollution and developing a cleaner and greener Europe.

Following Poland’s veto, how do you see the situation developing?

Our presidency will last for six months, so all we can do during that time is to push forward the discussion about developing cleaner energy and introducing green standards.

But I have to correct one misunderstanding displayed in the Polish press after the outcome of the EU Council meeting concerning the reduction of emissions. There were no decisions taken there; we have no law on the table. Instead, the Council just came to a number of conclusions and a political signal was given about the direction we are heading in with regards to energy.

So the Polish veto did not oppose any particular law, it was just a statement of your position. Now all conclusions will go to the Council, which will decide on how to proceed.

It is the beginning of a long process of deliberating about how to fulfill the EU’s aims of reducing pollution, developing

new energy sources and linking the reduction of pollution with investments in renewable energy technology and economic progress. If we all looked at the situation from such a broad perspective I am sure that finally we would be able to find a formula which suits all members and in which everybody could participate – including Poland.

How, as president, is Denmark dealing with discussions in some countries that call for the system of open internal borders to be ended, as part of a more restrictive immigration policy?

It is a sensitive issue but we should try to maintain the Schengen Area because it is a good system, and we are working on that as president. If we have immigrants inside the EU, we should agree that they be treated properly. And this is also an issue of solidarity and it is a very tricky question, because each member state has its own specific problems in this area.

Yet in spite of our different circumstances we should work on the issue of immigration together – this is something we want to promote through our presidency. We have to look at it in a visionary way because in the long term, let’s say in 20 years, Poland will also have its own immigration problems. It will then not be only a problem for rich Western members, but for all European countries. So a common immigration policy has to be worked out for the whole of the European Union, but I am not saying that this is going to be easy.

Has the financial crisis exposed divisions within the EU? As holders of the presidency we look at the problems we are facing in terms of the 27 members and common solutions. But as we proceed, I see that there is a huge imbalance in dealing with conflicts. In order to explain the situation, some observers and some in the media need to apply certain models, and it is convenient for them to talk of the old east-west and newly emerging north-south divisions.

Yet in reality the pattern is not that simple. Those elements that appear to be different are linked to the various interests of particular members and those interests are shifting in various directions.

So the old and newly invented models of divisions do not fit the present situation. But the debates which are now going on are leading to preliminary common steps to fight the crisis. So are decisions which lots of countries are taking to fight the crisis. … So in spite of differences in approaches it all confirms to me that there is a willingness to work for a cohesion policy throughout

Europe, including in the south.

Let’s turn to Danish-Polish economic relations, which were developing very well prior to the crisis. What is your perception of the current situation?

It is only natural that global trade went down during the financial crisis, and this applies to trade between Denmark and Poland. Yet now it is picking up and in 2011 the trade between our two countries amounted to around €4 billion. The trade surplus is on the Polish side, and I think it is good. It is an expression of a very mature approach to the international division of labor.

You have to look at the Danish trade balance globally and we have had a huge surplus for decades. Yet trade figures do not give the whole picture of our mutual economic relations because we have significant investments in Poland.

What are the most significant Danish investments in Poland?

Denmark holds the ninth or tenth place among foreign investors in Poland. We have Danish investments in a lot of sectors. Companies like Arla, Carlsberg, Danfoss, Danish Crown, JYSK, Netto and Velux are some of the bestknown.

Being a giant in the production of renewable energy, why does Denmark not concentrate on investing in that field?

All investment decisions are taken by businesses themselves. But I don’t agree with you, because we have quite a lot of energy-related companies investing in Poland. I can name here a few like Danfoss, Dong Energy, Grundfos, Hedeselskabet, LM Glasfiber, Rockwool, Velux and Vestas.

Yet while we talk about investing in energy we are not only talking about producing energy – it is also very important to deal with energy efficiency. We have focused on this for several years in Denmark and we have excellent technology in that field. I think we are predominant in that area in Poland.

Are you satisfied with the structure of our mutual trade and investment?

My job is to promote Danish interests, but it is powerful Danish businesses which shape these relations by searching for a profit. But I want to add that I am very satisfied that Poland has started to invest in Denmark. It is a sign of [Poland’s] mature economy and the expansion of its businesses. So I think that our mutual economic and trade relations will be even more dynamic in the future, and the climate for it is very good on both sides ●

www.wbj.pl

9

10

COVER STORY

www.wbj.pl

Top earners There were 10 women in management boards of Warsaw Stock Exchangelisted companies who earned over z∏.1 million last year, Parkiet reported. With earnings of z∏.2.3 million, CEO of ING Bank Âlàski Ma∏gorzata Ko∏akowska was the highest-paid among them, followed by former deputy CEO of Bank Handlowy Sonia W´drychowiczHorbatowska, who made z∏.1.8 million.

Fitch praises Poland According to ratings agency Fitch Ratings, the recent successful passage of pension reform legislation through the lower house of the Polish parliament is positive for the country. This is “both because of the long-term contribution that pension reform can make to fiscal consolidation, and as an indication of the broad political consensus in support of structural and fiscal reform,” the agency said in a statement.

Unions plan Euro 2012 protests Members of Polish labor union Solidarity want to protest against the government’s decision to raise the retirement age during Euro 2012, which start on June 8.

Rallies are scheduled to be held in all cities hosting the games: Gdaƒsk, Poznaƒ, Warsaw and Wroc∏aw, reported Rzeczpospolita. ●

MAY 21-27, 2012

Eastern Poland

On the rise Poland’s east-west divide is being bridged, but it’s not an easy task Perhaps less well-known to foreigners, the divide that has split Poland between east and west for decades is nevertheless measured in very concrete terms, such as income levels, higher in the center and west than in the east of the country.

With concerted efforts from the Polish government at all levels and support from EU funds, it looks as if growing investments in Poland’s eastern regions are on their way to level things out.

The west, center and south of the country are often referred to as Poland A, while the east – sometimes referred to as the “Eastern Wall” – is frequently termed Poland B. The division is mainly the result of the geographical position of eastern Poland – further away from the heartland

of European commerce and trade than the rest of the country – as well as the suitability of its soil for agriculture.

During communist times disparities deepened, with industrial development and the introduction of modern farming methods concentrated in the western voivodships.

Even following the post-1989 transformation, the initial focus was on modernizing the country’s existing industrial base in the west. At the time of Poland’s accession to the European Union in 2004, eastern voivodships were the poorest regions in the then 25country bloc.

Fortunately, Poland joining the EU gave an important impetus to their development.

But disparities still persist to the extent that Jacek Wódz, a sociologist at the University of Silesia, quoted by Money.pl, described the difference between eastern Poland and the rest of the country as being

Eastern Poland’s shifting borders What is now eastern Poland was very much central Poland prior to the border changes that took place following the Potsdam Conference in the aftermath of World War II. Following independence in 1918, Poland had extended eastwards into territory held today by Lithuania, Belarus and Ukraine. In 1945 the victorious Stalin was able to negotiate a westward shift for

the country, which suited his expansionist aims.

From being an inlying region, albeit an under-developed one, present-day eastern Poland suddenly became an outlying region – its position today at the eastern border of the EU underlines this sense of the region being at the extreme, and, unfortunately, in the minds of some, at the margins. ●

Brendan Melck

WARMI¡SKO - MAZURSKIE Olsztyn PODLASKIE Bia∏ystok

Warsaw

LUBELSKIE Lublin Kielce ÂWI¢TOKRZYSKIE

equivalent to the difference between Poland and developed countries in the West.

GDP per capita in Poland’s 16 voivodships illustrate the point well. The most recent figures from Poland’s Central Statistical Office show that in 2009, while the Mazowieckie voivodship (where the capital is situated) enjoyed an average GDP per capita 60 percent higher than the national average, the country’s five eastern voivodships ranked last.

Lubelskie was at the very bottom of the list, with an average GDP per capita 32.8 percent lower than the national average – and a shocking 92.8 percent below that of Mazowieckie.

Rzeszów PODKARPACKIE

Bridging the gap Significant steps have been taken in recent years to narrow the gap between eastern Poland and the rest of the country. An operational program entitled “Development of Eastern Poland,” approved by the EU in October 2007 and covering the period 20072013, allocated z∏.10 billion for this purpose. Based on the most recent reports, around two-thirds of the the sum have already been distributed.

The voivodships included in the program are: Lubelskie, Podkarpackie, Podlaskie, Âwi´tokrzyskie and Warmiƒsko-Mazurskie.

An important vehicle for boosting investments in eastern Poland has been the creation of special economic zones, which offer investors tax breaks, among other incentives. Centers for such zones include Tarnobrzeg in the Podkarpackie voivodship and Suwa∏ki in the Podlaskie voivodship. These zones have taken on a great deal of importance in the economic life of their regions.

COVER STORY

MAY 21-27, 2012

Glossary Marsza∏ek województwa – Voivodship Marshall The voivodship marshall is one of the two heads of a voivodship. He or she heads the executive board of the voivodship and is elected by the Voivodship Council (Sejmik Województwa). Among other things, the voivodship marshall has the power to act in individual matters and within matters of public administration.

Wojewoda – Voivode The voivode is one of the two heads of a voivodship. He or she is appointed by the Council of Ministers and acts as its (and the Treasury’s) representative in the voivodship.

“Companies in the Suwa∏ki Special Economic Zone (SSEZ) have invested z∏.1.6 billion. That level of investment has a major influence on the region, in terms of partners cooperating with these companies and suppliers of services, and so on,” Robert ˚yliƒski, chairman of the board at the SSEZ, told WBJ. Farming and forestry have been the dominant industries in the region for a long time, but the SSEZ has attracted a wide range of companies, including producers of building materials, plastics and yachts.

“I think that the SSEZ will continue to be characterized by the variety of our investor companies. I see a great potential in yacht producers, a sector in which the region could have a competitive advantage,” said Robert ˚yliƒski.

A problem of perception Nevertheless, on the whole it still remains harder to attract investments to eastern Poland. One important reason for this is the fact that

Among other things, the voivode has the power to act in matters of legal oversight concerning local government authorities.

Województwo – Voivodship Voivodships are the largest administrative divisions in Poland. Each voivodship also has a popularly elected Voivodship Council, which holds four-year terms. The number of councilors on each voivodship council varies by voivodship. There are 16 voivodships in Poland today, the outcome of a 1999 reform. Between 1975 and 1998 Poland comprised 49 voivodships. ● Poland’s main trading partners are EU countries located on Poland’s western flank, with Germany the most important among them. A number of high-profile political spats between Poland and its most powerful eastern neighbor, Russia, have also negatively affected trade between them.

There is also the question of perception. The deeplyrooted stereotype of backwardness that sticks to eastern Poland has proven a disincentive to invest, particularly for Polish companies.

“I think that this disparity in the willingness to invest in eastern Poland ... comes from the perceptions of residents of other regions, of eastern Poland as a poor region, barely out of communism, far behind the rest of the country,” said Agnieszka ¸ukaszewska-Wojnarowska, director of the Regional Development Department at the Polish Information and Foreign Investment Agency (PAIiIZ).

“This perception of the provincialism of these five voivodships has been stuck in

Regional divide

said Mr Jarubas.

Ranking of Poland's voivodships by average GDP per capita (in z∏.), 2009

Location matters

Rank

Voivodship

GDP per capita (in z∏.)

1

Mazowieckie

56,383

2

Lower Silesia

38,395

3

Silesia

37,761

4

Wielkopolskie

37,424

5

Pomorskie

34,267

6

¸ódzkie

32,162

7

Zachodniopomorskie

30,939

8

Ma∏opolskie

30,220

9

Lubuskie

30,068

10

Kujawsko-Pomorskie

29,834

11

Opolskie

28,761

12

Âwi´tokrzyskie

27,333

13

Warmiƒsko-Mazurskie

25,970

14

Podlaskie

25,951

15

Podkarpackie

24,131

16

Lubelskie

23,651 Source: Central Statistical Office

the consciousness of Poles for generations.”

However, many non-Polish companies do not share these preconceptions. “They see Poland as a whole, not as it is often presented in the media here, as Poland ‘A’ and Poland ‘B.’ They receive the same investment support as in other regions, and have access to a brilliant workforce – there are still issues with the

Polish IT education and consulting company Syntea. Also deserving of a mention are the numerous firms involved in the aviation sector clustered around Rzeszów and Mielec.

Adam Jarubas, marshal of the Âwi´tokrzyskie voivodship, when asked the same question, focused on the energy sector. “The power station in Po∏aniec, owned

“It still remains harder to attract investment to eastern Poland” transport infrastructure, but this is changing,” said Ms ¸ukaszewska-Wojnarowska.

Model investors Asked to give examples of the most successful investors in eastern Poland, Ms ¸ukaszewska-Wojnarowska cited Swedish furniture giant IKEA and British glass producer Pilkington, as well as

Tourism in eastern Poland The ‘Pi´kny Wschód’ (‘Beautiful East’) program, which is being managed by the Polish Tourist Organisation under the auspices of the Development of Eastern Poland operational program, is seeking to change people’s perceptions of the region.

Here, the lack of development in many parts of eastern Poland becomes a strong selling point for those seeking unspoiled natural beauty not too far from the beaten track. One example among many is the primeval forest of Bia∏owie˝a in the Podlaskie voivodship, a UNESCO World Heritage Site.

www.wbj.pl

In terms of cities, meanwhile, the visually impressive Lublin is doing well at attracting visitors. “From a marketing perspective, for the last few years we have been developing the ‘Lublin – city of inspiration’ brand, which is focused chiefly on increasing weekend and short-break tourism,” explained Anna Jurys from the Department of Strategy and Investor Assistance at Lublin City Hall.

“Thanks to our initiatives and the growing number of good-quality accommodation facilities, the number of tourists reached one million in 2011.” ●

and operated by GDF SUEZ Energia Polska, is a good example; [later] in 2012, a new biomass block with a capacity of 190 megawatts will be put into operation. It will be the biggest biomass power plant in the world.”

Another major energy investment gathering pace in the Âwi´tokrzyskie voivodship, also worthy of remark because of its innovativeness, is the establishment of a renewable energy cluster in Rz´dów. Local authorities have been heavilly involved in the project’s conception and development.

“The construction of a z∏.165 million bio-power plant will be carried out by Termo-Klima MK; a solar farm will be implemented by Georyt Solar and a z∏.100 million wind farm consisting of six windmills will be built

by AS BioEnergy. This is going to be the largest green energy area in our country,”

A strong growth area for Âwi´tokrzyskie, and its capital Kielce in particular, is its trade fairs, managed by Targi Kielce, a company owned by the city’s local government.

Such is the company’s success that it has become the third-largest operator of trade fairs in the Central and Eastern Europe region.

“The expansion of the Targi Kielce exhibition center, and as a result, the trade fairs held here, has benefited the whole region – from the hospitality and catering sectors to the construction sector,” said Mr Jarubas.

Kielce has benefited from its location at the crossroads of the main economic centers in Poland – Warsaw, Kraków and Silesia. Lublin, one of the largest cities in eastern Poland, is doing the same.

“Lublin is a perfect spot for east-bound trade and logistics,” said Anna Jurys, project manager BPO at the department of strategy and investor assistance at Lublin City Hall. “Service sector companies can cater to their Eastern European partners, while industrial firms can trade their products. Logistics companies are also becoming increasingly interested in the city.”

The poorly developed transport infrastructure in eastern Poland is perceived as a disincentive for investors, although matters are improving, and Lublin is a good example of this.

The lack of a local airport has been a barrier which had so far discouraged both investors and tourists from coming to Lublin. But a new airport scheduled to open in October, coupled with intensive work taking place on the northern ring road and express roads linking Lublin with Warsaw and with the Ukrainian border, should help. Hopefully, these improvements will “banish the impression of Lublin as an inaccessible city,” said Ms Jurys.

The development of eastern Poland continues to lag behind other regions in the country, and, as a consequence, economic and social divisions persist. However, there are many signs that indicate a more dynamic and enterprising future for this diverse region. ●

11

Poles to go on vacation during Euro As many as one-third of Poles will go abroad on vacation during the Euro 2012 soccer championships, according to a report from internet travel agency eSKY.pl. “This is the first time we have seen such huge interest in vacations abroad in June,” Piotr WoÊ from eSKY.pl told Rzeczpospolita. At least half a million soccer fans are expected to come to Poland, which could cause a lot of disruption to city life, the daily wrote.

Polish steel production grows Polish steel mills produced a total of 2.4 million metric tons of raw steel during Q1 2012, 15% more than during the same period of last year, Puls Biznesu reported.

However, analysts predict that such strong growth levels will not persist for the remainder of 2012. An expected slowdown in the economy, along with high import levels of steel will most likely lead to a reduction in domestic production.

Germany attracts Polish entrepreneurs Tax rebates, cheaper rental costs, and the likelihood of higher profits are attracting Polish entrepreneurs to do business in Germany.

According to German data, some 28,000 Polish businesses operated in Germany in 2011, Dziennik Gazeta Prawna reported. Some 94% of them were registered in Berlin and in the eastern parts of the country. In one county – BeckerRandow, located near the Polish-German border – half of all registered businesses are backed by Polish capital. ●

To order a print copy or digital version of the publication, e-mail kwilinski@valkea.com or call +48 (22) 639 85 67, ext. 208

12

OPINION & ANALYSIS

www.wbj.pl

MAY 21-27, 2012

Hollande or insurrection?

Zaki Laïdi

“Will it take a military coup to acknowledge that the situation is untenable?” many’s uncompromising stance?

The prospect of reducing public deficits to less than 3 percent of GDP is unrealistic in both the Netherlands and Spain. Unless it is ready to take punitive measures now, the EU will have to give these countries additional leeway – mindful that the European public tends to respond negatively every time it is consulted. In Greece, the recent election has not yielded a majority coalition capable of taking ownership of the austerity plan, leading to yet another popular vote.

Ireland is fortunately less worrying, but the odds that the fiscal pact will be approved in a popular referendum are becoming longer. Granted, the removal of the unanimity clause provides a way to avoid this

would slow its own economic recovery.

Germany has historically never benefited from isolation. It is probably on the basis of this historicalpolitical argument that Mr Hollande will be able to bring about a German shift.

obstacle and allow for the pact’s implementation. But this solves nothing, because neither France nor Italy will ratify the pact. Even Germany’s Social Democrats, whose support Chancellor Angela Merkel needs to secure ratification in the Bundestag, appear to have granted only conditional support.

Germany is accused of monetarist dogmatism and of being responsible for accentuating the economic asymmetry between it and its euro-zone neighbors. Its relatively good economic health allows it to finance its debt at less than the rate of inflation, while other European states finance theirs at rates that are three points higher than inflation.

COURTESY OF FLICKR/FRANCOIS HOLLANDE

F

or better or worse, Europe is now engaged in an insurrection against the fiscal pact condemning European Union member countries to austerity without growth. Will it take a military coup to acknowledge that the situation is untenable?

Or will the election of Francois Hollande as French president shift Ger-

enough of a realist to see that this relationship is significantly unbalanced, owing to France’s economic decline, and that Mr Sarkozy’s endorsement of German preferences was not worth the appearance of being at the heart of the decision.

Mr Hollande’s victory has already sharply redefined European politics.

Almost all European governments are counting on him to change the balance of power. Rarely has a French election had such repercussions in Europe. Will he succeed?

Merkel lacking support With Mr Hollande’s defeat of Nicolas Sarkozy, Ms Merkel has virtually no support in the euro zone besides that of Finland. The tandem with Mr Sarkozy was very useful to the Germans in advancing their views, while Mr Sarkozy accepted his role in “Merkozy” in order to maintain France’s key role in Europe’s crisis management. In terms of form, traditionally pro-federalist Germany thus aligned with France’s longstanding insistence on a Europe of governments. But, in terms of substance – austerity versus urgently needed economic growth – France lost.

Mr Hollande is determined to change course. He believes deeply in the centrality to Europe of the Franco-German relationship. Yet he is

Consensual proposals The four proposals that Mr Hollande has put forward are so consensual that it would be difficult for Germany to oppose them: use of non-disbursed resources from the EU Structural Funds, recapitalization of the European Investment Bank, creation of

project bonds, and taxation of financial transactions. Significantly, two proposals that were most likely to meet German opposition – eurobonds to pool risk and the transformation of the European Stability Mechanism into a bank that could borrow from the European Central Bank – were removed from his draft memorandum to European leaders.

Despite the gravity of the situation, Mr Hollande has three advantages: excessive austerity is unrealistic, given growing social opposition; public deficits are only a small part of Europe’s problems (and are not necessarily the source of the crisis); and a strong consensus has emerged outside of Germany to change tack.

Moreover, during the upcoming G-8 summit, Mr Hollande will enjoy the support of the United States, which worries that deflation in Europe

Rare and powerful alliance Of course, one might argue that the emerging European consensus is quite ambiguous. Some favor stimulating growth through investment projects, while others emphasize structural reform. Furthermore, there is no guarantee that Mr Hollande’s proposals will quickly revive moribund economies. Indeed, it is blatantly obvious that in a country like France, reduction in public spending – especially the state’s often-unproductive operating expenditures – is a prerequisite for recovery.

Yet Europe’s problems, by definition, cannot be solved simultaneously. And what is not at all ambiguous is the public’s rejection of austerity – or, for that matter, financial markets’ increasing concern that long-term growth could suffer. That is a rare and powerful alliance, and one that Europe’s political leaders ignore at their peril. ● Zaki Laïdi is Professor of International Relations at the Institut d’études politiques de Paris.

Copyright: Project Syndicate, 2012. project-syndicate.org

Polish politics hits new low

It

is difficult to think of any major European country where there is as much polarization and hatred between political parties and their supporters as there is in Poland today.

Even though the recent French presidential campaign was a heated affair, almost immediately after the vote the loser and now former president, Nicolas Sarkozy, invited his nemesis Francois Hollande to attend a ceremony with him.

In Poland, when Law and Justice (PiS) leader Jaros∏aw Kaczyƒski lost the presidential election to Bronis∏aw Komorowski in 2010, he refused to attend his inauguration (or even shake his hand) and said Mr Komorowski had been elected “by mistake.”

After the 2010 parliamentary elec-

tions in the UK, there was talk of a grand coalition between arch-rivals the Labour Party and the Conservatives, something unimaginable between Poland’s two biggest parties today, the ruling Civic Platform (PO) and PiS. In Germany one can also easily imagine Ms Merkel ruling with the Social Democrats.

We don’t expect love, but ...

Nobody is saying Poland’s two biggest parties should be sending flowers to each other but the level of crass, primitive behavior from politicians on both sides is appalling.

During a recent debate in parliament over the government’s pension reform bill new lows were reached.

While Jaros∏aw Kaczyƒski was making a speech, saying his brother, the late President Lech Kaczyƒski,

hadn’t supported increasing the retirement age to 67 as Prime Minister Donald Tusk was claiming, one or more MPs shouted “why don’t you call your brother and ask him?”

Mr Kaczyƒski lost his cool and accused Mr Tusk of fanning the flames of hatred. “This terrible crassness is on the level of what Adolf Hitler would have wanted for Poles, this is all your fault,” he said.

After this Janusz Palikot, the leader of Palikot’s Movement (RP), which is part of the anti-PiS camp, stepped up to the podium and again referred to the PiS leader’s dead brother saying he wasn’t surprised that “someone who was willing to send his brother to his death would say such things.”

After this a recess was called to cool emotions. Also later that day a

female journalist associated with proPiS views (Polish journalists today are divided into the pro-PiS and pro-PO camps) tried to interview former deputy parliamentary speaker Stefan Niesio∏owski from PO. Mr Niesio∏owski refused, telling the journalist that she should go back to her “PiS ass-lickers” and that she should “piss off.” He then lashed out at the journalist’s camera trying to knock it to the ground.

As could be expected, many of the immediate reactions to the incident reflected political sympathies. PiS politicians and their supporters think what Mr Niesio∏owski did was reprehensible and he should be punished or ejected from politics. Meanwhile many PO politicians and their supporters think Mr Niesio∏owski was provoked and that the journalist in

Remi Adekoya

question is after all a “PiS propagandist.”

To his credit though, the prime minister is trying to stay above the fray and act the grown-up. Mr Tusk has said publicly that he thinks Mr

“The level of crass, primitive behavior from politicians on both sides is appalling” Niesio∏owski should apologize to the journalist “without reserve.”

But that’s the exception to the rule it seems. Given the lack of respect between the parties, it is only a matter of time before the mudslinging in the Polish parliament starts again. ●

Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. 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.

PUBLISHER VALKEA MEDIA SA CO-MANAGING EDITOR

GARETH PRICE (GPRICE@WBJ.PL)

REAL ESTATE EDITOR

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL)

COLUMNISTS

ADAM NARCZEWSKI ANDREW NAWROCKI

SPORTS & LIFESTYLE EDITOR CO-MANAGING EDITOR

ALICE TRUDELLE (ATRUDELLE@WBJ.PL) POLITICS EDITOR

REMI ADEKOYA (RADEKOYA@WBJ.PL)

DAVID INGHAM (DINGHAM@WBJ.PL) JOURNALIST

IZABELA DEPCZYK CONTRIBUTORS

E. BLAKE BERRY EWA BONIECKA BRENDAN MELCK

PRODUCTION MANAGER

PIOTR WYSKOK

EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL) MARKETING &SALES

MARTA CZESZEJKO-SOCHACKA (MCZESZEJKO-SOCHACKAKA@WBJ.PL)

AGNIESZKA BREJWO

KAROL KOSIOREK (KKOSIOREK@WBJ.PL)

MARKETING &SALES DIRECTOR

(ABREJWO@WBJ.PL)

PR & MARKETING SPECIALIST

GRAPHIC DESIGNER

MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL)

CARTOONS

AGNIESZKA KUCZY¡SKA (AKUCZYNSKA@WBJ.PL)

¸UKASZ MAZUREK

MANAGING DIRECTOR MONIKA STAWICKA

NATALIA ROGACZEWSKA (NROGACZEWSKA@WBJ.PL) SUBSCRIPTIONS MANAGER

PIOTR WYSKOK

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

PRINT & DISTRIBUTION COORDINATOR

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

BOOK OF LISTS SPECIALIST

JOANNA RASZKA (JRASZKA@VALKEA.COM)

Two of Poland’s largest construction companies are now restructuring their debts

A Unidevelopment representative talks about the company’s plans for the office market 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

MAY 21-27, 2012, LI 17/20

Shopping centers

New Warsaw retail project announced furnished by Marek Tryzybowicz from the BOSE International architectural studio. Mr Tryzybowicz has previously worked on other retail projects in Poland including Silesia City Center in Katowice and Bonarka City Center in Kraków.

In its first phase the Galeria Sky Park investment will provide space for a 2,000-sqm food store and 25 other retail units whose sizes will range from 100 sqm to 600 sqm. Almost 300 parking spaces will also be delivered.

The first and the second phase of Galeria Sky Park will

A new shopping center project called Galeria Sky Park will be developed on ul. Szyszkowa in Warsaw’s W∏ochy district. The scheme, whose investor is a company named SKY Park, will be built in two phases and will comprise a total of 17,000 sqm of retail space.

The architectural concept of the single-storey mall has been

each deliver a total of 9,000 sqm of space. Construction on the investment is scheduled to launch in Q4 this year, with the first phase of the mall expected to open towards the end of 2013.

The location around the Al. Krakowska road in which Galeria Sky Park will be developed already features a number of major retail projects including Castorama and Decathlon stores, as well as a center housing a Real hypermarket and Media Markt and Meble Agata stores.

Adam Zdrodowski

Cornerstone laid for Neinver’s second Warsaw outlet

The first phase of Galeria Sky Park is scheduled for completion in 2013

COURTESY OF NEINVER POLSKA

Developer Neinver Polska last week held a cornerstone-laying ceremony at the construction site of its Factory Warszawa Annopol retail project in Warsaw, the company’s second outlet scheme in the Polish capital.

Factory Warszawa Annopol is being built in Warsaw’s Bia∏o∏´ka district and is scheduled to open in the first quarter of next year. The investment, which is currently more than 50 percent leased out, will deliver 19,700 sqm of space and will be the largest scheme of its kind in Warsaw.

“Ten years after opening the first Factory in Warsaw’s Ursus [district], we are coming back to the capital with another, even larger investment,” Barbara Topolska, general director of Neinver Polska,

The scheme will deliver 19,700 sqm of space said in a statement.

The Factory Warszawa Annopol investment is valued at €35 million. The outlet center, which will feature

BREEAM certification, was designed by the APA Wojciechowski studio and its general contractor is Budimex.

Adam Zdrodowski

Financing secured for Centrum Kowale mall Impress, the investor behind the Centrum Kowale convenience shopping center project in the Tri-city agglomeration,

In this issue New Warsaw mall . . . . . . . . . . . . .13 Centrum Kowale financing . . . . .13 New Neinver outlet . . . . . . . . . . .13 First Property Group . . . . . . . . . . .15 Construction woes . . . . . . . . . . . .16 Construction market prospects .16 Property-related stocks . . . . . . . .16 Unidevelopment interview . . . . .17

COURTESY OF MEDIADEM CONSULTING

The Galeria Sky Park scheme will deliver 17,000 sqm to the capital’s W∏ochy district

has signed an almost z∏.30 million deal with PowiÊlaƒski Bank Spó∏dzielczy concerning construction financing for the scheme.

“The credit agreement just signed is another factor in the success of Centrum Kowale, especially since the commercialization of the site is enjoying a lot of interest from tenants,” Krzysztof Zaremba, managing director of Impress, said in a statement.

The Centrum Kowale development, whose total

value is estimated at approximately z∏.34 million, will deliver 6,000 sqm of retail and office space, as well as a total of over 160 parking spaces in under- and aboveground parking lots.

The commercialization of the investment, which is scheduled to open in the last quarter of this year, is being carried out

by AXI IMMO. Already secured tenants include a Tesco hypermarket and a PEPCO discount store.

Adam Zdrodowski

Maybe social

media

is just a fad.

But these companies don’t think so. *

Combining the most in-depth social media knowledge with the sophisticated insights of consumer behavior

www.valkea-attention.com *Attention USA clients

MAY 21-27, 2012

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

15

Property funds

First Property Group plans acquisitions

Commercial property fund manager First Property Group, whose Poland portfolio includes the Oxford Tower and the Blue Tower high-rise buildings in Warsaw, is planning new acquisitions in the Polish market.

The company is currently looking at a number of real estates across the country, in the office, retail and industrial sectors. “We are interested in offices in the central business districts of the major Polish cities,” said Ben Habib, founder and CEO of First Property Group.

The company is also eying retail properties in Poland.

While it sees some potential risks involved in investment in regional shopping centers, it is interested in the discount-store end of the market. “This is a very interesting niche. Poles are generally cost-conscious people,” Mr Habib said.

First Property Group, which already owns a number of industrial properties in Poland, could acquire some additional warehouse buildings in the country as well. The firm is less interested in hotel facilities since its strategy involves reliance on stable rent-based incomes.

enough to house another tower.

An administrative permit for the planned project is first being procured, with Mr Habib expecting construction to launch in a few years’ time.

The company has not yet decided if it will cooperate with a developer on the development of the scheme.

Towering ambitions Meanwhile, First Property Group is working on its first major development project in Poland. The scheme will involve the refurbishment of the Oxford Tower skyscraper in Warsaw and the construction of a new high-rise office building nearby.

First Property Group bought the Oxford Tower building in 2007. Although Mr Habib did not reveal the value of the transaction, he said he regarded the deal as one of the best investments he had made in his career.

Rents in the property have increased significantly since the acquisition and the company has now come to the conclusion that the prime site, located in downtown Warsaw, not far from the capital’s Warsaw Central railway station, is large

Marathon runners Some of the other properties that First Property Group owns in Poland could be redeveloped too, Mr Habib said.

He added that future development projects could include the extension of a regional shopping center, as well as the development of a housing scheme in Warsaw’s Mokotów district.

However, he pointed out that the primary business of First Property Group, which he founded in 2000, is securing stable long-term profit coming from income-generating property, rather than seeking quick capital gain. Over the long term the total returns earned from investment property are very largely determined by income, not capital gains (or losses,) he added.

According to Mr Habib, this “marathon-running” strategy has so far worked out for First Property Group, which has avoided investing in development sites and focused on existing income-generating real estate.

In 2005, after commercial property prices rose sharply in the UK, the company’s home market, First Property Group shifted its attention to Poland.

Since then, the funds managed by the firm have been ranked

by Investment Property Databank as the best performing in the Central and Eastern Europe region, Mr Habib said.

Poland potential He added that the choice of Poland was a fortunate one and that in his view the country continues to offer good prospects for the commercial property market. While property values may have dropped following the global economic crisis, income from real estate has actually risen in recent years. This income return has more than cushioned the effect of the capital value reductions. As a result, all of the funds managed by First Property Group are recording

COURTESY OF FIRST PROPERTY GROUP

The commercial property fund manager is now also working on its first major development project in the Polish market

Mr Habib sees continued potential in the Polish market profits, over four years into the credit crunch.

Back in 2005, Mr Habib said, First Property Group, whose investors include British pension funds, found Poland the most promising

market in CEE due to factors including the size of the economy. Today it remains happy with the economic resilience and political stability of the country, he said.

Adam Zdrodowski

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

High retail investment levels in Q1 In contrast to Europe at large, where retail investment decreased from €9.9 billion to €3.8 billion y/y in Q1 2012, Poland saw its retail investment turnovers increase significantly in the period, according to a recent report by Jones Lang LaSalle. “The first quarter of 2012 recorded incredibly high investment turnovers totaling €728 million, which was over two times more than in the corresponding quarter of 2011 (€312 million),” stated Agnieszka Ko∏at from the company’s retail investment department.

New retail park near ¸ódê

Debt restructuring

Construction

PBG and ABM Solid restructure debt Construction sector to grow in 2012: report Construction-sector problems started soon after Euro 2012 announcement Polish builders PBG and ABM Solid are in the process of negotiating loan restructuring deals with their lenders, following financial problems.

PBG spokesperson Kinga Banaszak-Filipiak told Lokale Immobilia that PBG is negotiating a bridge loan worth approximately z∏.200 million.

She added that the negotiations should be finalized soon.

The company announced last week that president of the management board Jerzy WiÊniewski had lent the com-

pany z∏.50 million, z∏.36 million of which has already been transferred to the company.

The remaining z∏.14 million will be paid by June 15.

ABM Solid announced last week that it had already reached a restructuring deal which will allow the conversion of debt into company equity, extend the repayment period and lower interest rates.

“Reaching a debt-restructuring agreement is a key step towards ameliorating the current financial situation of ABM Solid,” Marek Pawlik, president of ABM Solid, said in a statement.

The problems that PBG, ABM Solid and other construc-

Construction market on the decline The reading of the WIG Budowlany construction companies index on the Warsaw Stock Exchange, 2007 to May 2012

12,000 10,000 8,000 6,000 4,000 2,000

ua ry 2 Jun 007 e 2 Jan 0 ua 07 ry 2 Jun 008 e2 Jan 00 ua 8 ry 2 Jun 009 e2 Jan 00 ua 9 ry 2 Jun 010 e2 Jan 010 ua ry 2 Jun 011 Jan e 20 ua 11 ry 2 Ma 012 y2 01 2

0

Jan

A new retail park called Centrum Mroga and sized approximately 6,000 sqm will be developed on an over 1.8 ha plot located in the town of G∏owno near ¸ódê. The investor behind the scheme is Europejskie Centrum Gospodarcze, which is planning to start construction on the investment at the beginning of 2013. ●

MAY 21-27, 2012

tion companies have been facing started soon after Poland was announced as Euro 2012 co-host back in 2007.

Jaros∏aw J´drzyƒski, an analyst at the real estate portal RynekPierwotny.com, said that contrary to expectations, soon after the news that Poland was to host the Euro 2012 soccer championship the construction market in Poland began to experience a gradual decline.

“The problems that construction companies were facing were mainly due to the poor quality and profitability of infrastructure contracts.

These contracts did not secure the companies’ interest adequately, which resulted in big financial losses,” Mr J´drzyƒski said.

He added that one of the biggest mistakes made in the contracts were to dismiss the possibility of raising prices for building materials, as these went up during the course of the construction by as much as 50 percent.

Mr J´drzyƒski said that government representatives chose companies that offered cheaper services for Euro 2012 contracts, regardless of whether they were capable of completing the projects.

This will be followed by a slowdown caused by a drop in road construction projects

impact on the Polish construction sector,” Bart∏omiej Sosna, PMR’s chief analyst for the construction sector, wrote in a statement.

He added that in the years 2013-14, investments in the energy and railway sectors will play a leading role, and will partially offset the lower number of road construction contracts.

However the long-term outlook for the construction sector is good, according to the European Union. Preliminary versions of EU forecasts for 20142020, suggest that by 2020 Polish construction companies will be doing well.

Poland’s construction market will grow by 5 percent in 2012, according to a new report from PMR Research. However the report also predicted that there will be a slowdown in the years 2013-2014.

The main reason for the predicted slowdown is a decreasing number of investments being made in the road construction sector.

“The decreased number of new investments in road construction will have a negative

Izabela Depczyk

Construction breakdown Composition of the Polish construction sector, by market share, 2006-2011 (in %) Residential

Non-residential

120 100 80 60 40 20 %

2006

2007

2008

2009

Izabela Depczyk

Source: Warsaw Stock Exchange

Civil engineering

2010

2011

Source: PMR Research

Property-related stocks Security

Closing price on May 17

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

64.00

-20.99

63.90

102.80

-37.13

25,530,098

1,633.93

CELTIC

12.76

0.00

12.95

22.70

-24.94

34,068,252

434.71

DOMDEV

31.40

-11.30

23.50

50.80

-32.31

24,670,397

774.65

ECHO

3.81

1.60

3.05

5.55

-25.29

420,000,000

1,600.20

ELBUDOWA

102.90

-3.56

87.00

165.00

-35.45

4,747,608

488.53

ENERGOPLD

1.78

-1.11

1.78

4.00

-55.28

70,972,001

126.33

ERBUD

15.47

0.52

14.15

30.94

-45.14

12,644,169

195.61

GANT

7.00

-4.76

5.85

13.33

-46.48

20,499,953

143.50

GTC

5.92

-12.56

5.92

19.99

-66.42

219,372,990

1,298.69

HBPOLSKA

0.41

-19.61

0.51

2.35

-80.29

210,558,445

86.33

JWCONSTR

4.57

-13.45

4.36

15.40

-70.11

54,073,280

247.11

LCCORP

1.32

-8.97

0.85

1.56

-10.20

447,558,311

590.78

MARVIPOL

8.19

6.92

6.20

9.95

10.53

36,923,400

302.40

MIRBUD

0.99

-15.38

0.99

4.07

-75.56

75,000,000

74.25

MOSTALWAR

13.15

0.92

11.30

36.05

-61.09

20,000,000

263.00

MOSTALZAB

1.10

-9.84

1.07

2.89

-56.69

149,130,538

164.04

ORCOGROUP

10.93

-9.59

10.93

37.40

-69.97

17,053,866

186.40

PBG

20.05

-18.16

22.05

154.80

-85.24

14,295,000

286.61

PLAZACNTR

2.35

-8.20

1.80

5.09

-54.01

297,174,515

698.36

POLAQUA

5.79

0.17

4.53

18.81

-65.94

27,500,100

159.23

POLIMEXMS

0.97

-14.91

0.78

3.53

-67.23

521,154,076

505.52

POLNORD

12.40

-10.14

11.03

28.95

-55.23

23,798,439

295.10

RANKPROGR

9.68

-18.86

8.60

16.97

-25.25

37,145,050

359.56

ROBYG

1.37

-2.84

1.04

2.05

-27.51

257,390,000

352.62

RONSON

0.92

-5.15

0.77

1.49

-35.66

272,360,000

250.57

TRAKCJA

1.05

-8.70

0.65

3.22

-61.11

232,105,480

243.71

ULMA

43.15

-22.60

43.15

83.70

-48.63

5,255,632

226.78

UNIBEP

4.68

-6.21

4.47

7.00

-26.88

33,927,184

158.78

WARIMPEX

3.94

-2.96

2.95

9.85

-60.95

54,000,000

212.76

ZUE

7.00

-2.78

5.07

11.55

-40.17

22,000,000

154.00

18

www.wbj.pl

LOKALE IMMOBILIA – REAL ESTATE

MAY 21-27, 2012

Developers

Office opportunities

Adam Zdrodowski: Unidevelopment is one of a number of residential developers in Poland that have entered the commercial market of late.

What’s the reason for the move?

Piotr Maciàg: We made the decision to enter the commercial market in 2010 and that decision was influenced by both the situation in the property market and the objective of diversifying our revenue sources.

We continue to be active in the residential market and are planning new projects in that sector. However, we also want to capitalize on opportunities in the office market in which there is now solid demand and in which new investments are seen as relatively safe.

Does the diversification strate-

gy mean that you are also going to focus on other types of commercial projects, including shopping centers?

Two years ago, we signed two preliminary agreements concerning the acquisition of commercial development projects. These were an office project on ul. Grzybowska 81 in Warsaw and a retail scheme in Kutno.

In 2011, we signed a preliminary agreement for the sale of the building that we are developing on ul. Grzybowska 81 to its future occupier, Bank Polskiej Spó∏dzielczoÊci. We also decided to focus, in the commercial market, solely on offices and skipped the retail project in favor of an investment fund that will develop the scheme on its own.

You have just acquired your second office project in Warsaw. The Wola House scheme will be built in an area that has so far not been associated with modern offices.

We strongly believe in the potential of the area around Al. Prymasa Tysiàclecia, which offers good transportation links and lies not far from downtown Warsaw. Wola House is a speculative project,

its commercialization is yet to launch.

We think that the development will be an attractive investment product for investment funds which are interested in the diversification of their portfolios. Many investment funds are no longer interested in buying more buildings in the Mokotów district.

Are you planning further office site acquisitions and if so, what kind of projects are you most interested in?

Currently, we are mostly focused on Wola House, construction on which should start in the fourth quarter of this year, but we are looking at other sites as well. For now, at least, we are mostly interested in the Warsaw market.

As far as the size of the projects that we are looking for is concerned, we are interested in up to 20,000 sqm of leasable space in a single building and from 25,000 sqm to 40,000 sqm of leasable space in the case of schemes that feature more than one building.

Both office project acquisitions that you have made so

far involved development sites with ready designs and building permits. Is this part of your strategy?

We are looking for both development sites, with or without a planning decision, and ready projects with building permits but of course the latter are more convenient in that construction can start soon after the acquisition.

There are now a number of prepared projects with building permits in the market which their original investors failed to carry out because of the global financial crisis. The problem is that many of those projects, often controlled by banks, still feature prices that are not in accordance with the market level.

Would you say that new players in the office sector are facing an uphill battle when it comes to securing bank financing and attracting tenants?

Generally speaking, banks use the same criteria while evaluating the credit worthiness of every single project. Key aspects refer to the quality of the project, the situation in the market, as well as the level of the investor’s equity involvement in the project and the

level of preleases. Brand recognition may play some role but, in fact, banks are now adopting a more personal approach and are also looking at the experience of the persons in charge of a particular company and a given scheme.

When it comes to tenants,

they certainly pay close attention to the developer that will build their future offices. Our big asset here is the fact that our main shareholder and general contractor, WSE-listed Unibep, is a well-known firm that has previously built offices for other developers in Poland. ●

COURTESY OF UNIDEVELOPMENT

Lokale Immobilia sits down with Piotr Maciàg, commercial market director at developer Unidevelopment, to talk about the company’s activities in the office sector

Mr Maciàg said that when it comes to offices, his company is mostly interested in the Warsaw market, for now

THE LIST

MAY 21-27, 2012

www.wbj.pl

19

Corporate Services

HR Companies – Temporary Work Agencies Ranked by number of temporary employees converted to FTE in 2010

Type of contracts: Employment contract / Mandate contract / Specific task contract

Selected clients

Number of temporary work consultants / Number of temporary work field representatives

Total number of own employees in Poland / Year founded in Poland

WND 9,694 7,587

WND 5,452 4,922

WND 4,242 2,665

WND 439.1 330.3

WND WND WND WND

WND WND WND

WND

3,085 52

123 WND

391 1994

None Randstad Holding - 100%

2

WORK SERVICE SA ul. Ruska 51, 50-079 Wroc∏aw 71 371-0900/71 371-0938 work@workservice.pl www.workservice.pl

WND 8,600 WND

WND 3,354 WND

WND 5,246 WND

WND 305.5 WND

WND WND WND WND

54% 45% 1%

Volkswagen Poznaƒ; TP; Canal+; AmRest

8 15

113 WND

399 1999

Supernova IDM Fund - 16.1%; HMS Best Management Idea LTI - 10.3% Prologics UK - 36%

3

Adecco Poland Sp. z o.o.

Al. Jana Paw∏a II 19, 00-854 Warsaw 22 376-0900/22 376-0901 biuro.hq@adecco.com www.adecco.pl

WND 7,234 5,613

WND 4,702 3,929

WND 2,532 1,684

WND 282.0 214.0

WND WND WND WND

97% 3% -

WND

5,500 51

44 WND

238 1994

None Adecco - 100%

Anna Wicha

4

Manpower Polska Sp. z o.o. ul. Nowogrodzka 68, 02-014 Warsaw 22 504-0715/22 504-0717 manpower@manpower.pl www.manpower.pl

WND 7,160 WND

WND 6,073 WND

WND 1,087 WND

WND 287.0 WND

2.5% 97.5% -

90% 10% -

WND

3,900 50

87 WND

212 2001

None Manpower France Holding 100%

Iwona Janas

5

Sanpro Job Service Sp. z o.o. ul. Ruska 3/4, 50-079 Wroc∏aw 800-190-911/71 711-0001 cc.info@impel.pl www.stacjarekrutacja.pl

7,000 4,500 3,700

5,900 3,600 2,900

1,100 900 800

WND WND WND

4% 1% 95% -

70% 30% -

WND

12 12

15 10

150 2003

WND

6

Trenkwalder ul. Czerwona 22, 96-100 Skierniewice 46 811-3091/46 811-3097 infopoland@trenkwalder.com.pl www.trenkwalder.pl

5,268 4,236 3,032

WND WND WND

WND WND WND

180.0 147.5 99.7

0.1% 99.8% 0.1%

90% 10% -

WND

350 34

WND WND

WND 2000

None Trenkwalder International 90%; Jeroen van der Weijde 10%

7

Start People Sp. z o.o. ul. Piotrkowska 111, 90-425 ¸ódê 22 661-5902/22 661-5902 mwieczorkowska@startpeople.pl www.startpeople.pl

3,640 3,762 WND

3,323 3,472 WND

317 290 WND

143.9 135.0 WND

1.3% 0.7% 98% -

92.6% 6.4% 1%

Knauf; Faurecia; Ferrero; Wedel; Tchiba

WND 27

44 6

169 1997

WND USG People

Marek Jurkiewicz

8

WADWICZ Sp. z o.o. ul. Karczewska 18, 04-112 Warsaw 22 345-6601 biuro@wadwicz.pl www.wadwicz.pl

2,100 2,350 2,000

280 750 600

1,820 1,600 1,400

33.0 40.0 32.5

15% 85% -

95% 5% -

WND

8 8

50 6

WND 1992

Jaros∏aw Adamkiewicz - 90%; S∏awomir Adamkiewicz - 10% None

Jaros∏aw Adamkiewicz

9

Grupa Job - Job Impulse Polska Sp. z o.o. ul. Sielska 8, 60-129 Poznaƒ 61 662-3479/61 662-3479 atokarewicz@grupajob.pl www.grupajob.pl

3,000 2,300 1,800

2,000 2,000 1,500

1,000 300 300

WND WND WND

WND WND WND WND

WND WND WND

WND

30 15

120 WND

60 2003

WND

10

INTERKADRA Sp. z o.o. ul. Wielicka 50, 30-552 Kraków 12 290-2244/12 290-2245 info@interkadra.pl www.interkadra.pl

1,932 1,345 761

1,900 1,300 750

32 45 11

60.0 37.0 18.0

8% 92% -

55% 43% 2%

Carrefour; Tesco

11 11

62 62

78 2005

Krzysztof Jakubowski - 33%; Marcin Smoroƒ - 33% None

Krzysztof Jakubowicz; Marcin Smoroƒ

11

GP People Sp. z o.o., Sp.k. ul. Mickiewicza 83A, 87-100 Toruƒ 56 651-0468/56 621-0211 kontakt@gppeople.pl www.gppeople.pl

1,370 1,055 525

1,100 938 509

270 117 16

12.9 9.5 2.4

0.8% 99.2% -

71.1% 28.9% -

Bacha Polska; Energa Obs∏uga i Sprzeda˝; Rug Riello; Sohbi Craft Polska; Stomil; Stovit; Wienerberger

3 3

5 -

13 2002

WND None

Rafa∏ Dyla

12

Grafton Recruitment Polska Sp. z o.o. ul. Sienna 39, 00-121 Warsaw 22 654-4646/22 654-4333 grafton@grafton.pl www.grafton.pl

778 694 2,000

117 210 600

661 484 1,400

13.5 11.2 9.6

34% 66% -

90% 10% -

WND

70 7

6 -

61 1997

WND

13

Hays Poland Sp. z o.o. ul. Z∏ota 59, 00-120 Warsaw 22 584-5650/22 584-5651 info@hays.pl www.hays.pl

170 140 30

-

170 140 30

WND WND WND

WND WND WND WND

100% -

WND

255 7

WND WND

150 2002

None Hays Specialist Recruitment 100%

14

Stegmann Polska Sp. z o.o. ul. Opolska 1, 40-084 Katowice 32 609-0550/32 609-0559 stegmann@stegmann-personal.pl www.stegmann-personal.pl

111 110 104

23 23 21

88 87 83

5.0 4.9 4.5

5% 1% 94% -

100% -

WND

Over 200 4

4 4

15 2004

WND

15

Devonshire Sp. z o.o.

Al. Jerozolimskie 56C, 00-803 Warsaw 22 820-9360/22 820-9328 biuro@devonshire.pl www.devonshire.pl

130 100 65

-

130 100 65

WND WND WND

20% 57% 20% 3%

92% 8% -

WND

5 2

3 -

20 2006

None Devonshire Recruitment Holdings - 100%

Daniel ¸upiƒski

16

CPL Jobs Sp. z o.o.

Al. Jerozolimskie 81, 02-001 Warsaw 22 488-6500/22 488-6530 warsaw@cpljobs.pl www.cpljobs.pl

WND 6 WND

WND WND

WND 6 WND

WND WND WND

80% 15% 5% -

WND WND WND

WND

20 2

1 WND

27 2006

None CPL Resources - 100%

Gracjan Góêdê

Rank

Income breakdown: S&R / Executive Search / Temporary work agencies / Other

www.bookoflists.pl

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

Total number of temporary workers converted to FTE

Number of manual workers

Number of office workers

Revenue from temporary work services (z∏. mln)

2011 (forecast) / 2010 / 2009

1

Grupa Randstad Al. Jerozolimskie 56C, 00-803 Warsaw 22 462-2500/22 462-2600 firma@pl.randstad.com www.randstad.pl

Number of offices: Worldwide / In Poland

Ownership: Polish / Foreign

Top local executive / Title

Kajetan S∏onina General Director

Tomasz Hanczarek President

General Director

WND

Grzegorz Tyszka President

Jeroen van der Weijde Managing Director

Managing Director

President

Maciej Kozicki President

WND

Proxy

Aleksandra Iwicka Country Manager

Micha∏ M∏ynarczyk Managing Director

Aleksandra Knapczyk Country Manager; Proxy

General Director

Country Manager

Due to an error in data submitted by companies, some incorrect information appeared in Book of Lists 2012 ’s HR Companies – Temporary Work Agencies ranking. The total number of temporary workers converted to FTE in 2010 in Manpower Polska was in fact 7,160, the number of manual workers was 6,073 and number of office workers was 1,087. The list above reflects the corrected ranking.

Notes: Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was conducted in October 2011. Number of employees and ownership structure are as of September 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

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 2011, 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.

20

MARKETS

www.wbj.pl

MAY 21-27, 2012

Stocks report

world stock indices DJIA

NASDAQ

12,442.49 (May 17 close)

S&P500

2,813.69 (May 17 close)

-3.21% (for the week)

FTSE100

1,304.86 (May 17 close)

-4.09% (for the week)

DAX

5,338.40 (May 17 close)

-3.91% (for the week)

-3.71% (for the week)

Greece leads heavy declines

NIKKEI225 6,308.96 (May 17 close)

8,876.59 (May 17 close)

-3.21% (for the week)

-1.48% (for the week)

CHANGE: 0.36%

CHANGE: 6.23%

CHANGE: 2.18%

CHANGE: -6.34%

CHANGE: 3.84%

CHANGE: 3.70%

(year to May 17)

(year to May 17)

(year to May 17)

(year to May 17)

(year to May 17)

(year to May 17)

52-week high: 13,359.60

52-week high: 3,134.17

52-week high: 1,422.38

52-week high: 6,084.10

52-week high: 7,523.53

52-week high: 10,255.20

52-week low: 10,362.30

52-week low: 2,298.89

52-week low: 1,074.77

52-week low: 4,791.00

52-week low: 4,965.80

52-week low: 8,135.79

Andrew Nawrocki WBJ market analyst Last week was a crushing one for Polish stocks, with heavy losses across all indices in Poland. Greece’s inability to form a government caused panic throughout Europe, hitting economically sensitive energy and financial stocks hard.

Last Monday, Greek socialist leader Evangelos Venizelos scared investors by openly admitting that the creation of a government is highly unlikely. Not helping was news that China’s economy may be softening more than previously thought.

Both the overall WIG and blue-chip WIG20 closed 2 percent lower.

Stocks extended losses on Tuesday. Despite relatively strong GDP figures coming out of Germany, markets continued to slide on fears of Greece. The WIG lost 0.89

Major indices WIG

37,228.88 (May 17 closure)

WIG20

2,057.12 (May 17 closure)

17.05

16.05

15.05

14.05

11.05

10.05

09.05

08.05

07.05

04.05

02.05

30.04

27.04

17.05

16.05

15.05

14.05

11.05

10.05

09.05

08.05

07.05

2,000

04.05

37,000

02.05

2,060

30.04

37,800

27.04

2,120

26.04

38,600

25.04

2,180

24.04

39,400

23.04

2,240

20.04

40,200

19.04

2,300

18.04

41,000

26.04

52-week low: 2,057.12

25.04

Change year to May 17: -6.24%

24.04

52-week low: 36,549.47

23.04

52-week high: 2,903.61

Change year to May 17: -2.84%

20.04

Change for the week: -5.96%

19.04

52-week high: 50,025.61

18.04

Change for the week: -5.52%

Top 5 DREWEX FERRUM ZAMET WARFAMA SKYLINE

Closing 0.50 10.39 2.09 1.48 2.36

% change (week) 52-week high 78.57 1.36 22.67 15.08 15.47 2.17 13.85 2.06 13.46 5.01

52-week low 0.16 6.48 0.97 0.66 1.60

Top 5 CEZ CYFRPOLSAT BZWBK PGNIG PGE

Closing 119.80 13.48 235.00 3.91 18.01

% change (week) 0.67 0.22 0.00 -2.25 -3.02

52-week high 154.00 17.69 240.00 4.65 25.07

52-week low 116.10 11.60 190.10 3.25 15.98

Bottom 5 ATLANTIS AGROTON POLJADLO ALTERCO ATM

Closing 0.28 10.46 0.43 16.00 5.67

% change (week) -34.88 -30.87 -29.51 -28.67 -28.05

52-week low 0.28 10.46 0.43 16.00 5.67

Bottom 5 PBG POLIMEXMS GETIN GTC TVN

Closing 20.05 0.97 1.97 5.92 7.91

% change (week) -18.16 -14.91 -12.83 -12.56 -11.12

52-week high 156.00 3.55 14.20 20.10 17.45

52-week low 20.05 0.77 1.97 5.72 7.73

52-week high 1.21 36.13 1.36 47.98 5.81

Currency report

The Greek tragedy continues

Other indices sWIG80

9,182.64 (May 17 closure)

NewConnect

38.89 (May 17 closure)

52-week high: 12,779.22

WIG-Banki

5,289.09 (May 17 closure)

SOURCE: WSE

17.05

16.05

15.05

14.05

11.05

10.05

09.05

08.05

07.05

04.05

02.05

30.04

27.04

17.05

16.05

15.05

14.05

11.05

10.05

09.05

08.05

07.05

04.05

5,200

02.05

38.0

30.04

5,340 27.04

38.8

26.04

5,480

25.04

39.6

24.04

5,620

23.04

40.4

20.04

5,760

19.04

41.2

18.04

5,900

26.04

52-week low: 4,944.19

25.04

Change year to May 17: -4.58%

24.04

52-week low: 38.89

23.04

52-week high: 7,112.78

Change year to May 17: -6.27%

20.04

Change for the week: -6.08%

19.04

52-week high: 57.46

18.04

Change for the week: -3.16%

42.0

Adam Narczewski X-Trade Brokers DM SA

17.05

16.05

15.05

14.05

11.05

10.05

09.05

08.05

07.05

04.05

02.05

52-week low: 8,218.71

26.04

25.04

17.05

16.05

15.05

14.05

11.05

10.05

09.05

08.05

07.05

9,000

04.05

2,200

02.05

9,220

30.04

2,260

27.04

9,440

26.04

2,320

25.04

9,660

24.04

2,380

23.04

9,880

20.04

2,440

19.04

10,100

18.04

2,500

24.04

Change year to May 17: 6.72%

23.04

52-week low: 2,076.52

20.04

Change year to May 17: 3.72%

19.04

Change for the week: -5.15%

18.04

52-week high: 2,959.86

30.04

2,271.74 (May 17 closure)

Change for the week: -4.98%

27.04

mWIG40

percent, while the WIG20 lost 1.22 percent. Wednesday brought some much-needed relief, after solid macroeconomic data from the US and encouraging words from the European Central Bank propped up market sentiment. The WIG20 did particularly well, gaining 0.41 percent.

On Thursday, investors were spooked once again by the prospect of Greece leaving the euro zone. Adding to downward pressures were concerns about the health of Spain’s banks. The fear of contagion sparked widespread sell-offs through Europe, with the WIG losing 2.5 percent, while the WIG20 lost close to 3 percent.

Finally, on Friday the WIG finished up 0.07 percent. ●

Concerns about the future of Greece and other euro-zone countries (mainly Spain) remain the main determinant of sentiment on financial markets.

A new round of elections in Greece (planned for June 17) could be the most important moment in euro-zone history. If a new pro-European government cannot be formed, the departure of Greece from the monetary union (the so called “Grexit”) could become a certainty.

Although recent polls indicate that the New Democracy and PASOK (socialist) parties could create a coalition government (both parties see the need for the continuation of the austerity programs), risk aversion on currency markets is very high.

In times like this, capital escapes to US dollar-denomi-

nated assets causing the greenback to appreciate. The EUR/USD continued its slide, reaching $1.2640, its lowest since January. A slight rebound brought the EUR/USD rate back over $1.27, but if the support of $1.26 is broken, the main currency pair will be targeting the $1.20 level in the near future.

Emerging-market currencies suffer during such turbulent times, and the z∏oty is no exception.

Macro data showed that inflation in April increased to 4 percent (an argument for hawks) but the negative global sentiment has led the z∏oty to fall, which has depreciated to levels unseen since January. The EUR/PLN reached z∏.4.39 in order to retreat to z∏.4.35 on Friday, while the USD/PLN after reaching z∏.3.46, finished the week at z∏.3.42. ●

currency rates 4.3407 18.05

4.2556 17.05

SOURCE: NBP

4.2752 16.06

4.2023 15.05

14.05

4.1010 11.05

0.1103

0.1097 18.05

4.0

4.1725

PLN-100JPY

4.4

17.05

0.1107

0.1108 16.06

15.05

14.05

0.1087 11.05

3.6210

3.6371 18.05

0.10

0.1101

PLN-RUB

0.12

17.05

3.6371 16.06

3.5932 15.05

14.05

3.5313 11.05

5.4342

5.4356 18.05

3.5

3.5808

PLN-CHF

3.7

17.05

5.4815 16.06

5.2838

5.3970 15.05

14.05

5.20

11.05

3.4431 18.05

3.4194

5.35

5.3676

PLN-GBP

5.50

17.05

3.4353 16.06

3.3579 15.05

14.05

3.2765 11.05

4.3490

4.3683 18.05

3.0

3.3422

PLN-USD

3.5

17.05

4.3682 16.06

4.2413

4.3160 15.05

14.05

4.2

11.05

4.3

4.3000

PLN-EUR

4.4

SPORTS

MAY 21-27, 2012

www.wbj.pl

21

Soccer

American football

Pakistan Embassy gifts symbolic ball to Poland

Eagles lose second game in a row

The Embassy of Pakistan in Poland has found a unique way to offer its support to Poland ahead of the country’s co-hosting of the UEFA European Football Championships this June.

On May 14, Pakistan’s ambassador to Poland, members of the Polish soccer association PZPN, organizing body PL.2012 and Poland’s Ministry of Foreign Affairs were all in attendance as a giant soccer ball, two meters in circumference, was unveiled on Warsaw’s ul. Krakowskie PrzedmieÊcie.

The ball, which was signed with messages of support by all those in attendance, has been

The Warsaw Eagles lost their second game in a row as Seahawks Gdynia were too strong for them in the sixth round of TopLiga American football matches.

The Seahawks flew out to a 34-3 lead late in the second quarter at the game in the capital, giving themselves enough room to hold off a second-half surge by the Eagles in a huge 34-24 victory.

The Seahawks broke a three-game losing streak to Warsaw that included a 52-22 loss earlier this season in Gdynia. It was only their second triumph in nine matches against the Eagles. It also marked the first time Gdynia has beaten Warsaw on the road.

Josh LeDuc opened the scoring on the first play from scrimmage, a play that came after Gdynia recovered their

created to show Pakistani support for the Polish team, as well as to commemorate the 50th anniversary of the start of diplomatic relations between the countries.

“The main objective of this event is to promote Pakistan in Poland. We have very good political relations, good economic cooperation, and this event is to help promote this relationship,” said Pakistan Ambassador H.E. Murad Ali. “The ball with signatures on will be our gift to the Polish fans,” Mr Ali added.

Mr Ali also highlighted that Pakistan is actually the world leader in terms of the manufacture of hand-stitched soccer balls, producing over 70 percent of the balls currently on the market.

David Ingham

COURTESY OF MARCIN WARPECHOWSKI

The giant soccer ball is a display of support from Pakistan ahead of Euro 2012

Warsaw went down 34-24 to Seahawks Gdynia

The Eagles struggled to get past the Seahawks’ defense in the first half own kickoff on the opening play. Kyle McMahon’s rainbow pass arrived at the goal line at about the same time as the wide receiver, who used his size to get position and haul it in for the game’s first points.

The flood gates then opened for the Eagles’ defense

and there was no way back after they went in at half-time 24 points down.

In the weekend’s other games, Koz∏y Poznaƒ beat the Dom-Bud Kraków Tigers 33-12 to extend their winning streak to two, while Devils Wroc∏aw recorded their fourth

shutout in six games with a 59-0 win over the AZS Silesia Rebels. The Devils currently lead the table, level on 10 points with the second placed Seahawks. The Eagles and Koz∏y are currently in the other two playoff spots.

Alex Zarganis

Euro 2012 roundup

Basketball

Lewandowski on fire ahead of Euro 2012 opener

Tri-city derby in PLK decider

keeper Wojciech Szcz´sny is set to be fit for Poland’s campaign, despite his club manager Arsene Wenger claiming the player had been carrying a shoulder injury for a number of weeks. Mr Szcz´sny took a three-day break following the end of the Premier League season but joined up with the Polish squad last week to begin preparations for the tournament, which starts in June.

player’s performances have not gone unnoticed in Europe as his impressive goalscoring record is believed to have attracted the attentions of Premier League giants Manchester United, with the Pole’s agent claiming last week that the English club is now interested in signing the striker.

Meanwhile, Arsenal goal-

Robert Lewandowski

COURTESY OF WIKIMEDIA COMMONS

Wroc∏aw hoteliers concerned about lack of bookings Hoteliers in the Polish host city of Wroc∏aw are worried that Euro 2012 will not have as big an impact on the industry as previously expected, with as many as 30 percent of the city’s rooms still available.

The Carlsberg Fan Camp in the city is also expected to house only 500 tents, compared to the 3,000 which were earlier planned. City authorities said that on match days

most hotels will be full but that on non-match days bookings are lower than expected.

The city will host Russia vs Czech Republic, Greece vs Czech Republic and Czech Republic vs Poland, during the three-week tournament.

PKP Intercity expects bumper June Polish rail operator PKP Intercity is bracing itself for Euro 2012, when it expects to carry some 150,000 passengers a day across the country.

This is compared to the 90,000 passengers it currently transports daily on its EuroCity, Intercity and TLK trains, reported Polish daily Dziennik Gazeta Prawna.

During the upcoming Euro 2012 championships, PKP will run 54 additional domestic and 68 additional international trains.

The company expects to make a z∏.25 million profit this year due to an increase in sales during Euro 2012.

David I n g h a m

Trefl Sopot

COURTESY OF FACEBOOK/TREFL SOPOT

Poland and Borussia Dortmund striker Robert Lewandowski was in inspired form during his club side’s 5-2 German Cup victory over Bayern Munich earlier in May. The 23-year-old scored a hat-trick, securing the Cup for his team, which had wrapped up the Bundesliga title just a few weeks earlier.

The former Lech Poznaƒ

Trefl Sopot will take on Asseco Prokom Gdynia in the best-of-seven series For the first time in the history of the Polish Basketball League (PLK) two teams from the Tri-city region will meet in the final of the end-of-season playoffs.

Asseco Prokom Gdynia and Trefl Sopot, who finished first and second respectively in the regular season table, will begin their best-of-seven series on May 21.

Trefl successfully made their

way to the final after beating PGE Turów 86-63 on the road to securing a 3-1 win in their semifinal round. Asseco Prokom had earlier beaten Zastal Zielona Góra 3-0 to go into the final as favorites.

The first two games will take place in Gdynia, before they move on to the Ergo Arena, located on the border of Sopot and Gdaƒsk. The last time the two sides met over 10,000 fans attended, with pundits expecting even more fans to be in attendance when the third game in the series takes place.

David Ingham

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 or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription

22

LIFESTYLE

www.wbj.pl

MAY 21-27, 2012

Concert

Film

Cover of night

More praise for ‘In Darkness’ Agnieszka Holland’s film won nine awards at the Gdynia Film Festival

COURTESY OF WIKIMEDIA COMMONS

Acclaimed Polish World War II film “In Darkness” won more praise this month when it scooped up nine awards at the 37th Gdynia Film Festival.

The film tells the true story of Leopold Socha, a Polish former criminal who risked his own life to shelter Jewish citizens in Lviv (now in Ukraine, but then part of Poland) dur-

Macy Gray Macy Gray May 30, 8 pm Torwar, ul.¸azienkowskiej 6A Warsaw Multi-award-winning American singer Macy Gray will be in the capital at the end of this month for a concert to promote her latest album “Covered.”

The album, which was released in March this year,

includes the artist’s interpretations of famous songs by other artists including Metallica’s “Nothing Else Matters,” Radiohead’s “Creep,” Yeah, Yeah, Yeahs’ hit “Maps” and “Here Comes the Rain Again,” by the Eurythmics.

In total the Ohio-born singer-songwriter, who is famed for her distinctive raspy voice, has released six

studio albums, with her most popular release being her debut record “On How Life is” which has sold seven million copies world wide. The album, which was released in 1999, contains the smash hit singles “I Try” and “Still.”

David Ingham

For more information, log on to planetedocff.pl

ing its occupation by the Nazis.

It has garnered praise throughout the world, including a nomination at the 2012 Academy Awards, for its realistic and moving account of this period.

At the closing ceremony, which was hosted by Polish actress Magdalena Mielcarz and journalist Tomasz Lis, the Golden Lions prize for best film was awarded to the film's director Agnieszka Holland.

Ms Holland, who was unable to attend the event,

said in a written statement, “We are deeply grateful and happy that our work is appreciated. Thanks, mom, for opening me to human suffering.”

It was Ms Holland's second Golden Lions win. She also received the award in 1981 for her film “Fever.”

Among the film's other awards were Best Director (Agnieszka Holland,) Best actress (Agnieszka Grochowska) and Best Editing (Micha∏ Czarnecki).

David Ingham

National Museum

A journey through art The Exalted. From the Pharaohs to Lady Gaga Until September 23, 2012 National Museum A new exhibition displaying art from different periods of history opened last week to mark the 150th anniversary of the opening of the National Museum in Warsaw.

“The Exalted. From the Pharaohs to Lady Gaga” is devoted to the mechanisms and iconography of power, from ancient civilizations to present-

day society.

The artwork on display aims to show the historical hierarchies of the past, as well as today’s democracy of the will of the people, through different forms of media.

Objects on display include a sarcophagus from ancient Egypt, the coronation dress of King Augustus III of Saxony, as well as a Ferrari.

“The new arrangement is to link many existing narratives into a single universal panora-

ma of art and culture,” said the museum’s director Agnieszka Morawiƒska.

“In this way, we will overcome the old canons and patterns of traditional museology, caused by the periodization of the history of art,” she added.

The National Museum, which was founded in 1862 as the Museum of Fine Arts, is one of the oldest art museums in Poland. It currently houses some 830,000 pieces of art David Ingham work.

LAST WORD

MAY 21-27, 2012

www.wbj.pl

23

Tech Eye

Life-hacking your way to fitness, maybe

The Nike+ Fuelband

ly to and fro, hither and thither, like a hamster. But when you throw in points, pie graphs and performanceover-time charts … well then, that’s not exercise any more. It’s life as a game.

The Nike+ Fuelband (nike.com) is one gadget that embodies this philosophy. It’s an unpretentious blackrubber wrist band with a simple LED display and a single button in the top, and a USB plug hidden in the bottom. The device tracks your activity via an accelerometer and calculates the amount of steps taken and calories burned.

It also awards Nike Fuel points and tracks how many you’ve earned each day, generating a record of past performances which presumably motivates you to beat old scores.

Fuel points are absolutely meaningless in practical terms, but on the other hand they’re points so you just gotta have them.

There’s an app to go along with the Fuelband, allowing you to sync it with your smartphone for access to more in-depth metrics, and there’s social-networking functionality too.

The Nike+ Fuelband comes in three sizes and costs $149. One

caveat, though – if you’re looking for quantum-level accuracy, you’re not going to find it here. The Fuelband’s calculation of steps and calories is more of a guesstimation than a proper scientific The Fitbit Ultra endeavor. The accelerometer is on your wrist, after all, so its measurements are based on hand/arm activity.

If the Nike+ Fuelband is all about tracking and encouraging fitness activity, the Fitbit Ultra (Fitbit.com) is, well, quite similar.

However, it boasts an altimeter as well as an accelerometer, allowing it to count stairs climbed (or trees climbed, if you’re a lumberjack), and clips onto clothes rather than fitting directly to your person.

There’s also a flower (pictured) which “will grow and shrink, depending on how active you’ve been lately.” In other words, if you COURTESY OF FITBIT

handy sometimes. A high school gym coach told us that, so it must be true.

Thankfully there’s a modern alternative to willpower: life hacking. If you’re not familiar with the concept, it’s essentially tricking yourself into being more productive and efficient in daily life.

Let’s take exercise as an example.

Techeye is generally too dignified (lazy) and urbane (fat) to enjoy touching our toes or running witless-

COURTESY OF NIKE

Techeye has always reveled in glorious deficiencies. Among other things, we “suffer” from a delightful paucity of courage, self-restraint, hygiene and self-censorship, and that’s the way we like it. It makes life interesting.

Lack of willpower, however, is perhaps the one character flaw we could do without. Willpower is usually seen in crazy old fogeys, psychopaths and high school gym coaches, yes, but it still comes in

don’t exercise your flower will be pushing up daisies.

Interestingly, the Fitbit can also track sleep patterns, so you can see how long it takes you to fall asleep, how many times you wake at night, etc. There’s a “sleep wristband” involved in this, though the website clearly shows a woman sleeping without a wristband on, suggesting that it’s either a rather lazily purchased stock image or that the device also works when nestled in one’s bosom. We’re hoping it’s the latter, since Techeye has an ample cleavage that’s well suited to gadget nestling.

The Fitbit Ultra costs $99.95. It comes with a mobile app and social networking capability, of course.

Unlike the Nike+ Fuelband, though, it also works with other popular nutrition and fitness apps, like LoseIt!, RunKeeper, Microsoft HealthVault and Endomondo.

Techeye is almost excited about this whole life-hacked exercise thing. Exercise seems so much simpler when there’s technology involved. Now all we need to do is find the willpower to buy some spandex. ●

Ever run hither and thither, hamster-like? Let us know: techeye.wbj@gmail.com

RISTORANTE SAN LORENZO

AL. JANA PAWﾅ、 II 36

TEL. 22 652 1616 WWW.SANLORENZO.PL