WBJ Observer May, 2015

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MAY 2015

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VIDEO GAMES

Power Up!

How Polish video games are conquering the world MAY 2015

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• C o m m e n t a r y • R a n k i n g • C i t y s c a p e • N ew s • L i fe st y le

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MAY 2015 • WBJ OBSERVER

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lll COMMENTARY 12 Law Start-ups 15 IT Outsourcing 18 Interview

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VIDEO GAMES 33 45-70 40

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lll ENTREPRENEURS 40-42 NeuroOn Helping you sleep 72-73 Cityscape Opole 74-75 Ranking Technology Parks

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INTERVIEW WITH MATEUSZ SZCZUREK

76

lll LIFESTYLE

76-78 Gadgets 80-81 Events European Executive Forum 83-84 Events European Economic Congress 86-87 Food Farmers’ Markets 88 Nowak On the joy of food

WBJ OBSERVER • MAY 2015

3

NEWS

lll INREVIEW News highlights from the past month

Władysław Bartoszewski

F

ormer Polish Foreign Minister and Auschwitz survivor, Władysław Bartoszewski passed away on April 24. He was one of the first to write a detailed report of what was happening in Auschwitz after he was released from the camp in 1941. He saved many Jewish lives throughout World War II and fought in the Warsaw Uprising. He was imprisoned by the communist regime twice. First, after the end of WWII, on fabricated espionage charges, he spent nearly seven years in prison before a court

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MAY 2015 • WBJ OBSERVER

finally ruled in 1955 that he had been unfairly arrested.

He also spent four months in jail during martial law for being involved with the opposition.

Despite his experience during the war, he spent a large part of his life working for Polish-German reconciliation. After the fall of communism, he was Poland’s ambassador to Austria, senator and Minister of Foreign Affairs twice. “This is a huge loss; a great Pole has left us,” President Bronisław Komorowski wrote on his twitter account.

Bartoszewski’s funeral was attended by a number of highranking officials, including PM Kopacz

Images: Shutterstock, KPRM Flickr

Władysław Bartoszewski dies at 93

Let’s discover the most beautiful corners of the world together

NEWS

Use your Hertz Discount Card to rent a car. In Poland and abroad.

For business and leisure.

Book a car at www.hertz.pl or contact us: +48 22 50 01 620, 800 1 43789

WBJ OBSERVER • MAY 2015

5

NEWS

Shorts LOT WITH NET PROFITS FROM PRIMARY ACTIVITY

F

ENERGA SETS EYES ON UK

P

oland’s second-largest statecontrolled energy group, Energa has been analyzing the British market, Puls Biznesu daily reported. The firm did not confirm the news.

The energy market in the UK is the world’s most competitive and Energa is the first Polish energy company to be interested in foreign expansion further than in its neighborhood, the daily pointed out. Energa was to hire a British consulting company to work out an electricity sales strategy on the market. According to the daily, the experts recommended Energa establish its British brand and prepare offers for selected segments.

6

Nuclear power plant pushed back by two years?

R

euters reported that the plans to build Poland’s first nuclear power plant will be delayed by at least another two years, according to anonymous sources. The delay is due to a decision made by state-run utility PGE to do on-site research itself and cancel a consultancy contract.

PGE’s canceled the PLN 250 million contract with Australian WorleyParsons in December. “This alone delays the program by at least two years,” a person familiar with the program told Reuters. “PGE would now have to conduct all the studies, including those on environmental impact, on its own, which could take additional time given their lack of expertise.”

The project, expected to cost between $10 billion and $15 billion, was to be completed by 2035.

BSH acquires FagorMastercook H

ousehold appliance production group BSH (Bosch und Siemens Hausgeräte) will acquire bankrupt FagorMastercook, as the German company signed a preliminary deal with Fagor’s receiver, Polish Radio Wrocław reported. Chinese Haier’s offer had not been taken into consideration.

The deal is valued at PLN 90 million, with PLN 5 million to be committed to severance pay for the employees.

The factory will restart its production within 18 months. BSH has vowed to invest PLN 120 million into the production plant and employ 500 people. There are now 800 employees at the bankrupt firm, they will be officially let go at the end of the month.

FagorMastercook has been in bankruptcy for two years.

MAY 2015 • WBJ OBSERVER

Images: Shutterstock

or the first time in seven years, state-owned LOT recorded net profits from its primary activity (carrying passengers) in 2014.

Profits were valued at PLN 99 million, the airline informed.

The amount is higher by nearly PLN 30 million (i.e. 40 percent) than was assumed in the firm's restructuring plan.

“Due to receiving state aid, in 2014, we had to conduct nearly 8 percent less flights than a year before. Despite that, we serviced 2 percent more passengers and we increased our revenue in comparison to 2013, maintaining the costs at the same level,” Sebastian Mikosz, LOT CEO said in a press release.This year we need to, at least, repeat the financial success, because our goal is to achieve permanent profitability,” Mikosz added.

EBITDA stood at PLN 291 million, whereas it totaled PLN 156 million a year before and amounted to minus PLN 346 million in 2012.

LOT estimates that it will achieve PLN 124 million net profits this year, the press release also informed.

Poland buys Patriots and French helicopters

A

ccording to Polish daily Gazeta Wyborcza, Poland has decided to buy surface-to-air Patriot missile systems produced by American firm Raytheon. The company announced on its web page that “it has been awarded a contract worth over $2 billion to deliver the combat-proven Patriot Air and Missile Defense System to an undisclosed international customer.”

Raytheon will be responsible for delivery of six Patriot missile systems equipped with GEM-T missiles in the next three years, and then, with newer PAC-MSE missiles. The total value of the contract stands at PLN 26 billion.

Additionally, the Ministry of Defense has selected French Eurocopter Caracal EC725 manufactured by Airbus to be “further verfied.” It means that Poland will probably buy 50 helicopters from the French producer, rather than the British-Italian AgustaWestland AW149 or American Black Hawk S-70i.

The Ministry’s decision may be seen as controversial, as two Polish entities were involved in the competition: PZL Mielec, owned by American Sikorsky and PZL Świdnik, owned by AgustaWestland. Their applications

were declined due to “formal reasons.” These two global companies suggested that, in the case of not winning the tender, they will decrease their production level in Poland.

Technical tests for the helicopters are scheduled on May 12. Labor unions at PZL Mielec, agreed with the defense minister to send representatives to observe the tests.

Within a few days of the media report regarding the possible winners of the tender, Airbus announced that it is planning to create 1,250 “direct” and 2,500 “indirect” jobs in Poland until 2020. Guillaume Faury, the chief executive of Airbus Helicopters said at a press conference.“We are committed to being in Poland in the long-term, this is not an offset-like approach, we are in a home country,” he added.

According to the the company’s representatives, if it wins the tender, Airbus will launch a servicing line for H225M helicopters in Łódź. Pierre Buhler, French ambassador to Poland believes that the Polish defense sector will benefit from choosing Airbus, as the vehicles will be manufactured using supplies from Polish firms.

Poland will spend PLN 35 billion on the army modernization program in 2013-2022.

fill the moment The first whisky magazine in Poland

www.whiskyquarterly.com

WBJ OBSERVER • OCTOBER 2014

7

NEWS

MF DENIES INTRODUCTION OF MINIMUM ALCOHOL PRICING The Ministry of Finance has said that nobody had consulted it with regard to the introduction of minimum alcohol pricing, according to Polish daily Gazeta Wyborcza.

“The Ministry of Finance, that is the ministry responsible for alcohol taxation, is not carrying out any projects which may result in the price increase of alcohol,” said Jarosław Neneman, deputy Minister of Finance.

“We are not foreseeing any alcohol and cigarette excise tax increases,” he also added.

Dziennik Gazeta Prawna reported recently that the Polish government had supported the introduction of a common alcohol strategy during a meeting of European ministers of health in Riga. The decision would result in a price increase, as the cheapest beer would cost around PLN 4 (currently around PLN 2), and a bottle of vodka would be sold at approximately PLN 32 (currently some PLN 20).

Third UN Global Road Safety Week

8

MAY 2015 • WBJ OBSERVER

Images: Shutterstock

T

he Third UN Global Road Safety Week – Save Kids’ Lives took place on May 4-10. The Week drew attention to the urgent need for better protection of children and initiated prevention measures. Previous editions took place in 2007 and 2013.

The Week featured hundreds of events hosted by governments, international agencies, civil society organizations, and private companies worldwide.

Subaru, under the auspices of Poland's National Council (KRBRD) of Road Safety and the National Police Headquarters, initiated the “3maj się bezpiecznie. Zwolnij” (“Hang on safely.

Slow down”) action. The automotive company took care of the educational part of one of the events held on May 9 in Warsaw.

As of 2014, Poland took the fourth from last spot in the EU when it comes to the road accident fatality rate with 84 deaths per million inhabitants. This is far below the EU average (52 deaths). Whereas, Sweden, had the lowest reported road fatality rate, less than 30 deaths per million inhabitants, according to data published by the European Commission.

WBJ Observer is a media patron of the event.

NEWS

EM&F TO SELL SMYK?

E

mpik Media and Fashion Group (EM&F) has been preparing to sell the Smyk clothing chain, according to Puls Biznesu daily which cites several anonymous sources.

“The company is choosing an advisor. There are two investment banks in the game, the agreement is expected to be signed within a month,” said one of the sources.

“We are not selling our company right now. We do not want to comment on rumors and speculative information regarding Smyk’s plans. Systematically, we have been preparing the asset to be sold, we have been improving the results. There is a huge interest among potential buyers, but we do not want to hurry,” Krzysztof Rabiański, the CEO of EM&F said.

“Likely, we will present the offer next year and the completion of the transaction will possibly take place in 2017,” Rabiański added. Smyk is to be ready for sale within six months, according to the daily’s information.

Smyk is valued at PLN 800 million to 1 billion.

Such private equity funds as Mid Europa Partners, Enterprise Investors, Innova Capital, Bridgepoint, Montagu, Oaktree and companies like Toys “R” Us, Mamas & Papas are among the potential investors, Puls Biznesu reported.

EM&F has over PLN 700 million of debt, the daily reminded.

Poland welcomed in AIIB

P

oland was accepted as one of the founding members of the Asian Infrastructure Investment Bank (AIIB) established upon China's initiative, Polish Radio reported.

China published a list of 57 founding members, including Poland.

“Taking part in these operations will allow Poland and the Polish economy a maximization of benefits as a result of establishing a new international financial institution,” said Artur Radziwiłł, the deputy minister of finance.

Poland’s Ministry of Finance sent a so-called endorsement letter to the newly established Secretariat of the AIIB on April 3, the last day of submitting applications.

A memorandum regarding the creation of the bank was signed by 21 Asian countries in October last year.

I n t e r n a t i o n a l C o n f e re n c e f o r P ro m o t i n g A r b i t ra t i o n

2015 Dispute Resolution in M&A /JV Transactions The biggest M&A conference in the region, a truly unique event

3rd edition

Tactics, Challenges, Defences

SAVE THE DATE:

28-29 May 2015, Warsaw, Poland

MORE INFORMATION: arbitrationcourt.org.pl WBJ OBSERVER • MAY 2015

9

NEWS / ECONOMY

CALENDAR

MAY/JUNE MAY

12

AREAS OF THE FUTURE – INNOVATION DISTRICTS IN POLAND AND EUROPE Event:The aim of the conference is to show European and Polish areas of innovation – how they function, how they were created, how they are connected with local government, universities and business and also how to finance them.

Location: Warsaw University of Technology Web: kreatywnemazowsze.pl/en/konferencja

MAY CLUSTER OF SCIENCE, TECHNOLOGY AND INNOVATION

MAY

20-22

Event: The conference will center on the broad notion of technology transfer as well as the process of the formation of new, innovative companies. Presentations will be given by experts from the US, Finland and Germany.

Location: Poznan Science and Technology Park Web: 2015.konferencja-sooipp.pl/en/

29-31

MAY

15

Event: Over 150 leaders in the real estate industry, from both public and private sectors, will discuss important trends and factors in what shapes a competitive city, and what city authorities, investors and developers are doing to enhance Poland’s regional and global competitiveness.

Location: Intercontinental Hotel, Warsaw Web: europe.uli.org/event/uli-poland-save-datecompetitive-cities-conference/

DISPUTE RESOLUTION IN M&A/JV TRANSACTIONS

MAY

28-29

Event: Leading experts in the field will be discussing current trends in, and practical aspects of, arbitration in M&A/JV transactions. The specific conference topics include: hot topics in M&A/JV arbitration from the perspective of ICC, AAA, DIS and SIAC; settlement in M&A/JV arbitration: voluntary, contractual, or induced by the arbitrators; evidence problems in M&A arbitration.

Location: Royal Castle, Warsaw Web: sadarbitrazowy.org.pl/en/Conference-program

PRIVATE EQUITY FORUM & AWARDS GALA

WALLSTREET KARPACZ

MAY

EUROPEAN ECONOMIC FORUM

Event: The WallStreet Karpacz conference is the biggest meeting of individual investors in Poland. This year's edition foresees more than 20 lectures and 3 discussion panels on the current economic situation in Poland.

Location: Hotel Gołębiewski, Karpacz Web: sii.org.pl/8304/edukacja-i-analizy/wallstreet/konferencjawallstreet-19.html#ak8304

JUNE

8

Event: This year, the conference which is held by the Executive Club will discuss, among others, the significance of PE funds in supporting innovation in business. The event will end with a gala, where awards in various categories, such as “Fund of the year,” “Bank of the year,” and “Legal advisor of the Year”will be granted.

Location: Intercontinental Hotel, Warsaw Web: executive-club.com.pl31

EUROPEAN ECONOMIC FORUM Event: European Economic Congress is a three-day series of debates and meetings with the participation of six thousand guests from Poland and other European countries who talk about issues of greatest importance to the economic and social development of Europe.

Location: Katowice Web: eecpoland.eu/en

Competitive cities: attracting human 20-22capital, investment and business • I International Conference entitled “Competitive cities: Attracting human capital, investment and business” and held on 15 May in Warsaw by the Urban Land Institute – an organisation with 33,000 members worldwide • 6 representatives of Polish cities (including Warsaw and Wrocław), who will take part in a debate on the competitiveness of cities • 3 mayors and representatives of European cities (including Barcelona and Turin), who will share their experience and practices in the field of competitiveness • 13 experienced speakers and experts among other things in the field of planning and design of a vision of development for cities, infrastructure and communications, higher education and innovation, visual identity and internationalisation • Nearly 200 leaders from the real estate sector (including developers, investors, consultants) • Debates, discussions, lectures and comments on trends in competitiveness of cities

The registration form can be found here: poland.uli.org

Main media patron

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MAY 2015 • WBJ OBSERVER

Other media patrons

Data source: Warsaw Stock Exchange, Central Statistical Office

15 May, Hotel Intercontinental, Warsaw

NEWS

/ ECONOMY

FACTS AND FIGURES Dataoverview overviewMarch March Data Dataoverview overview March Data Data overview MarchMarch

WARSAW STOCK EXCHANGE WARSAW STOCK EXCHANGE

ASWARSAW OF APRIL 2015 STOCK EXCHANGE STOCK EXCHANGE WARSAWWARSAW STOCK EXCHANGE AS OF APRIL 2015 AS OF APRIL 2015 2015 OF APRIL AS OF APRIL AS 2015

473 473 473 473 473

3.2% 3.2% 3.2% was World Bank’s 3.2%was3.2% World Bank’s

Number of listed companies Number of listed companies Number of listed companies Number of listed companies

Number of listed companies

was World Bank’s

recent forecast for was World Bank’s was Worldrecent Bank’s forecast for recent forecast for Poland’s GDP growth recent for recent forecast forforecast Poland’s GDPGDP growth Poland’s growth in 2015.

GDP growth Poland’s GDP growth inPoland’s 2015. in 2015. in 2015. in 2015.

8.8% 8.8% 8.8% was the was the 8.8%

Tradevolumes volumes Trade Trade volumes volumes Trade Trade volumes

-1.5% -1.5% -1.5% -1.5% -1.5%

8.8%y/ywas the y/ywas industrial industrial the

Shares Shares Shares

PLN Shares 74.19 billion PLN 74.19 billion PLN 74.19 billion

Shares

WAS POLAND’S CPI WAS POLAND’S CPI INFLATION WAS POLAND’S CPI INFLATION INFLATION WAS POLAND’S CPI WAS POLAND’S CPI

y/y industrial output growth was the output growth output growth y/y industrial y/y industrial output growth output growth

Bonds PLNbillion 74.19 billion PLN 74.19 Bonds

Bonds250 million PLN PLN 250 million Bonds Bonds PLN 250 million

INFLATION INFLATION

3% 3% 3%

Futures 250 million PLN 250PLN million Futures Futures

PLN 70.44 billion PLN 70.44 billion PLN 70.44 billion Futures

3% 3%

was the was the the y/ywas retail y/ysales retail y/y growth retail was thegrowth was the sales growth sales

Futures

Growth70.44 of main index (WIG), ytd 70.44 billion PLN billion GrowthPLN of main index (WIG), ytd 9.84% Growth of main index (WIG), ytd

9.84% 9.84%

of main Growth of mainGrowth index (WIG), ytdindex (WIG), ytd

y/y retail y/y retail sales growth sales growth

9.84% 9.84%

11.7% 11.7% 11.7%

The average monthly gross salary in the Polish business sector amounted to PLN 4,214.14 in March, an increase of 4.9 percent year-on-year, the Central Statistical Office (GUS) reported.

The data applies only for companies with employment exceeding nine people. In February, the average monthly salary was lower and totaled PLN 3,981.75.

Employment grew by 1.1 percent y/y, GUS also informed.

said Minister of Labor and Social Policy Władysław Kosiniak-Kamysz.

(ISBNews)

Mar. '15

Mar. '15

Jan. '15

Feb. '15

Mar. Feb. '15 '15 Jan. '15

Mar. '15 Feb. '15

Dec. '14

Jan. '15 Feb. '15 Dec. '14

Oct. ‘14

Nov. ’14

Nov. ’14 Dec. '14 Oct. ‘14

Jan. Dec. '15 '14 Nov. ’14

Sep. '15 ‘14 Mar.

Oct. ‘14 Nov. ’14 Sep. ‘14

Aug.'15 '14 Feb.

Sep. Aug. ‘14 '14 Jul. '14

Aug. Jul. '14 '14 jun '14

Sep. ‘14 Oct. ‘14 Aug. '14

Jul. '15 '14 Jan.

jun '14 '14 Dec.

May. ’14 '14 Nov.

Jul. jun '14 '14 May. '14

Apr. ‘14 '14 Oct.

May. Apr. '14 '14 Mar. '14

11 Jul. '14

11 jun '14

12 11.5

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12 11.5

jun May. '14 '14 Apr. '14

12.5

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11

Aug. '14

Mar. '14

Apr. Mar. '14 '14

11

1213.5

11 11.5 13

12.5

Mar. '14

Mar. '15

13

Mar. '15

Mar.Feb. '15 '15 Jan. '15

Feb. Jan. '15 '15 Dec. '14

Mar. '15 Feb. '15

Feb. '15

Jan. '15

Dec. '14

Dec. Nov. '14 ’14 Oct. ‘14

Jan. Dec. '15 '14 Nov. ’14

Nov. ’14

Oct. ‘14 Nov. ’14 Sep. ‘14

Oct. ‘14

Sep. '15 ‘14 Mar.

Sep. Aug. ‘14 '14 Jul. '14

Aug. Jul. '14 '14 Jun. '14

Jul. Jun. '14 '14 May. '14

Sep. ‘14 Oct. ‘14 Aug. '14

Aug.'15 '14 Feb.

Jul. '14

Jun. '14

May. '14

-2 Mar. '14

-1.5

-2

Apr. '14

-1.5

11.5

Jul. '15 '14 Jan.

-1

12 11.5

13.5

Jun. '14 '14 Dec.

Mar. '14

-1

Apr. Mar. '14 '14

-0.5

-0.5

13 13.5

Poland’s 13 registered unemployment rate, 13 12.5 February12.52014 – February 2015

-1

0.5

Mar. ‘14 '14 Sep.

0

13.5

Apr. '14

-1.5

-1.5 -2 -1.5 -2 0 -2

unemployment rate decline means that an employer's market is being gradually replaced by an employee's market. It must lead to an increase in salaries."

12 12.5

May. Apr. '14 '14 Mar. '14

0.5

registered unemployment registered unemployment rate rate

-1 -0.5

Jun. May. '14 '14 Apr. '14

-1

Apr. ‘14 '14 Oct.

-0.5

11.7%"The 11.7%

Decreasing

0 0.5 Year-on-year CPI inflation in Poland, 0 -0.5 February 2014 – February 2015

May. ’14 '14 Nov.

0

registered unemployment registered unemployment rate registered rate unemployment rate

13.5

Deeper down 0.5

0.5

Aug. '14

Image: Ministry of Labor Data source: Warsaw Stock Exchange, Central Statistical Office

Unexpected growth

WBJ OBSERVER • MAY 2015

11

COMMENTARY / START-UPS

AGNIESZKA WIERCIŃSKA-KRUŻEWSKA LAWYER, SENIOR PARTNER AT WKB WIERCIŃSKI, KWIECIŃSKI, BAEHR

Start-up. But where to start?

M

ost business ideas never leave our heads.

Some pass after being shared with family or friends. And only very few of them reach the execution phase, not to mention, successful market exposure. What are the most common problems and obstacles: lack of faith, no support, lack of financial resources and confusion about where to start!

The first question that pops up when people think of business ideas is: how can I protect it? Can someone else copy my idea? How can I start discussing my business idea if I don’t trust my potential business partners, who can easily do the business without me, because they have money or some other necessary resources? The simple answer is “No, a business idea (as any other idea) is not protected.” In general, it is free to be copied. Therefore one must take some measures to protect the idea from being used by someone else.

The idea can be protected contractually – we agree (in writing), with people to whom we disclose the idea, that the information is confidential and disclosing it without our consent constitutes a breach of the contract between us. The lawyers call such an agreement – a confidentiality undertaking or NDA (non-disclosure agreement). If we are thinking seriously about our future business, we can provide for contractual penalties (a fixed amount of money) for any unauthorized disclosure.

The idea, if nicely described (if such description is of individual and creative character), may become a copyrightable work and therefore protected against copying based on the copyright law. For example, many companies “codify” manuals on how to do business. These manuals provide for details on how the idea must be implemented (for example franchise chains), name the idea and protect (register) the name. Many ideas become popular and distinctive

12

MAY 2015 • WBJ OBSERVER

because of a catchy name they are given. The idea is associated with a brand. It is recommended to register such a name and all complementary necessities (domain, logo) in advance.

The above is relatively easy when the idea comes from one person and this one person is able to obtain proper financing. One person can operate as a sole entrepreneur (registration is necessary) or as a wholly owned limited liability company (often owned and governed by the same person). But in many cases, either the idea comes from a group of persons or such group of persons (entities) is necessary to start the business. In this case, we need to think about creating a “partnership.” As long as individuals cooperate with each other to achieve a certain goal, they most likely operate as a civil law partnership. This form is very flexible, however, in case of failure, partners are responsible for all debts with their own assets and it is also difficult to separate (define) their contributions.

This is why the most common form used for a start-up firm is a limited liability company (Polish: sp. z o.o.). Such a company, in order to be registered, must have the so-called Articles of Association. In case of start-ups, it’s worth considering a shareholders’ agreement where the owners agree on how they want their business to be run. Unfortunately, many businesses wither because their owners (partners) disagree on the day-by-day operations or the strategy of the business. The shareholders agreement should serve as a guideline for such an operation, but also as a solution agreed upon in good times for the bad moments.

All of the above steps are important but they are irrelevant if the idea does not “come out.” For starters, we should believe that some ideas grow into businesses and it’s worth trying the one we have! u

COMMENTARY / IT

DARIUSZ JĘDRZEJCZYK KEY AND CORPORATE ACCOUNTS SEGMENT ORANGE POLSKA

Outsourcing means predictable, low costs

F

rom its onset, the development of modern technology brought with itself the necessity of joining technological resources in order to manage better, as well as simplify workers’ activities. What is the main challenge within IT outsourcing today?

It began with...

New technologies appeared piecemeal. In the mid-90s, the average office had a personal computer and telephone for each worker, as well as an available connection with the net and fax. Gradually, mobile phones started appearing; along with them, e-mail connectivity, and the ability to use online data and services. The onset of of the 21st century brought with it new challenges and costs. Yet most early providers imposed their own conditions, including pricing. It was difficult for managers to commit time and attention to manage IT functions that were essential to operations, yet did not translate directly into development of the firm.

Current uncertainties Dealing with repetitive and relatively simple functions is just one of the problems connected with IT outsourcing.

Solving difficulties connected with the management of modern technologies, which require specialist knowledge, is a much more complex challenge. For example, the employers of a meat processing plant or a clothing distributor may not necessarily know how to configure private access to a company cloud, where each employee’s access rights are dependent on the position they hold. Furthermore, they may be ill-prepared to resolve possible system failures – an outside specialist is indispensable in such cases.

Small and medium enterprises do not require a lot of services, hence they seldom decide to sign long-term contracts with IT providers. Instead they prefer to rely on

the services of independent experts, who are all too often focused on a very specific field of knowledge and cannot offer a firm the undivided attention that company owners would like.

On the other hand, larger firms and corporations do not put any more confidence in IT outsourcing than the smaller firms. Some of them, in connection with their own activity in modern technology, decide to implement their own independent solutions. Others, who need technology solely for development and management streamlining, often complain that providers do not give their problems enough contemplation.

Benefits in unity How to manage such doubts and problems? How to reconcile everyday maintenance of IT infrastructure with the resolution of special problems? In addition, how to simplify the delivery of various media, while saving money at the same time?

Some companies, including Orange, deliver technological solutions that consolidate services and products necessary for the management of a firm. Suggested offers cater to the needs of various clients – from small companies that require basic solutions, as well as corporations searching for specialist and customized services and products. Such services guarantee ample care in the daily use of equipment and programming, as well as a specialist help desk in the event of more serious crises.

Besides caring for computers and their proper functioning, telecommunications services, cloud and data backup are among the offered solutions. A single contract is easier to manage, requires less attention, and is less expensive than sourcing services from multiple providers.

Furthermore, such an offer provides cost predictability and a professional standard of services. u

WBJ OBSERVER • MAY 2015

15

INTERVIEW / MATEUSZ SZCZUREK

To save or to spend?

MATEUSZ SZCZUREK, MINISTER OF FINANCE, TALKS WITH WBJ OBSERVER ABOUT POLAND’S BUDGET AND FISCAL POLICY, HIS POSITION ON CLAUDE JUNCKER’S (CHAIRMAN OF THE EU COMMISSION) PROPOSAL FOR ESTABLISHING A REVIVAL FUND FOR STRATEGIC INVESTMENTS IN THE EU. WE ALSO INQUIRED ABOUT GUIDELINES FOR POLISH TAX SYSTEM REFORM PREPARED BY THE MINISTRY OF FINANCE

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MAY 2015 • WBJ OBSERVER

Image: Jan Malinowski/WBJ

I N T E R V I E W B Y E WA B O N I E C K A

INTERVIEW / MATEUSZ SZCZUREK

WBJ Observer: The budget for 2015 has been approved and there is a deficit of PLN 46.08 billion. How do you assess the current condition of Polish finances?

Mateusz Szczurek: In the creation of budget and fiscal policy, we take into consideration the deficit of the entire general government sector. The central budget deficit is at the level you have mentioned, but to conduct responsible fiscal policy, the deficit of the whole sector of public finances is important. The overall deficit in the general government sector is linked to the level of public debt. The EU principle is that this deficit should be maintained within a limit of 3 percent of a member country’s GDP. From 2009, which was the peak of economic and financial crises in European Union, the deficit in the general government sector in many EU member states was and still is far above the limit of 3 percent of GDP. In Poland, in spite of our steady economic growth, we also have a general government sector deficit above 3 percent of GDP. Our goal is to keep the deficit of the whole public finance sector within the limit of 3 percent.

Does the approved state budget guarantee the fulfillment of all social promises, presented by Prime Minister Ewa Kopacz ?

The ambitious elements of our social policy, like the new shape of family tax incentives, indexation of retirement pay and other social promises of Prime Minister Kopacz were taken into account while preparing the state budget, so there are no reasons to worry about their feasibility.

Image: Jan Malinowski/WBJ

Your predecessor, Jacek Rostowski, was known for being parsimonious in spending public funds, especially on social programs. Are you more flexible?

My predecessor and myself have both acted in accordance with the rule that policy, whether it is public spending, general government deficit or tax policy,

should be adjusted to cycles of economic performance. In other words, there is time for austerity measures and there is time for more expansionary fiscal policy.

The time for looser fiscal policy was in 2009, at the peak of the economic crisis in the EU. The problem at that time was the lack of private sector expenditure, a decline in investments, a substantial slowdown in consumption, so there was a need to compensate it with higher government spending. When the economic environment improves and the companies begin to invest more, then naturally, public spending should be pulled back.

This is one way of approaching budget policy. The second approach posits that the level of public spending is constrained by tax revenue. Poland is a country where the share of taxes in the GDP is relatively low. There are not many countries in Europe, where that proportion is smaller. This requires a reduction in Polish public expenditures. So, if we do not want to overburden the private sector with higher taxes, we have to limit our budget expenses, sometimes also in social spending, which are lower in Poland than the average in Europe.

Yet in spite of economic growth in Poland, Poles do not feel there is an improvement in their living standards. On the contrary, they complain about low incomes and low pensions.

Some economists point out, in a recently prepared report (issued by the Kościuszko Institute), that the natural assets of our economic growth based on low costs of production and low pay are vanishing. What is your comment in light of this?

Using the World Bank definition, Poland has left the middle-income area and has started moving into high income territory a long time ago. With regard to the matter of catching up with rich Western countries, let me point out that incomes measured in Poland per head amount to 70 percent of the average for the European Union and have never been so close to Western Europe as they are now. In the last 25 years, the GDP has more than doubled.

WBJ OBSERVER • MAY 2015

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INTERVIEW / MATEUSZ SZCZUREK

The period of global crises did not bring recession in Poland. The rate of catching up with the West has been spectacular in the last 8-9 years. It does not mean that we do not have economic problems, but worries that our model of economic development is in danger are unfounded. Poland has not based its economic growth in the last years on frantic credit taking and dependence on external financing is being reduced. Our country is making use of all the possibilities the market economy and free trade have to offer.

What about the very low wages of Poles?

They are lower than in rich Western countries, but the real wage increase in Poland during last few years was one of the highest among EU countries. Whether it means that it’s possible in the next 3-5 years to build such national wealth as was created in some other Western nations, which were not ruined by war, deserves a realistic answer, and not some wishful thinking. Such processes require many years of effort, but we have not wasted the last decade and the economic facts are a good prognosis for the future.

Preparing the new Tax Code is a fundamental task, crucial to our financial and economic activity for years to come. The Tax Code should be a non-partisan document. The Codification Commission, which has already been set up by the Ministry of Finance, is manned by the best experts. The chairman of the Codification Commission is professor Leonard Etel, the president of the University of Białystok and outstanding specialist in tax law and financial matters.

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MAY 2015 • WBJ OBSERVER

“THERE IS TIME FOR AUSTERITY MEASURES AND THERE IS TIME FOR MORE EXPANSIONARY FISCAL POLICY.

Image: Shutterstock

One of the crucial problems which is ahead of us, is the preparation of a new Tax Code. Poles expect that it will facilitate their relations with tax offices, protect the rights of taxpayers and create a more transparent and effective system of tax collecting. The Ministry of Finance has presented its postulates for the new Tax Code. What will be the general direction of the changes?

INTERVIEW / MATEUSZ SZCZUREK

Preparation of a new Tax Code requires time and I expect that the presentation and approval by parliament will take around two years. In the postulates prepared by the Ministry of Finance, there are regulations which will protect the taxpayer in his relations with tax offices.

There will be a limitation on the period for executing former tax obligations, and also less controls will be conducted by workers of tax offices. There will be the possibility of legal settlement in the course of proceedings with tax offices and greater effectiveness of the whole tax collecting process is expected. Also available will be an electronic system providing information about tax issues.

Let’s remember that the present Tax Code comes from 1997. The economic and financial conditions in Poland have changed greatly since then. We are now a member of the European Union, which implies new obligations, so the need for new tax regulation is obvious.

There is no consensus regarding the European Commission chairman Claude Juncker’s plan for building mechanisms to revive strategic investment in the European Union. What is your position on the subject?

Juncker’s proposal is very interesting.

There is no doubt that the EU needs to push up strategic investments in many sections of the economy and infrastructure, as many member states are still in an economic crisis or suffer from a slowdown. Juncker proposed the establishment of a €300 billion fund including EU, EIB contributions leveraged by private investments.

At the meeting of finance ministers in Brussels, I appealed to the other members to contribute some money from national budgets to those mechanisms.

I told them that Poland would be ready to do so. The final approach was to make use of “national platforms,” co-funded by national promotional banks. In Poland, Bank Gospodarstwa Krajowego and Polskie Inwestycje Rozwojowe will be the basis for such a platform, providing up to €8 billion to fund Polish investments.

This money can be augmented by the European Fund for Strategic Investments.

WBJ OBSERVER • MAY 2015

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INTERVIEW / MATEUSZ SZCZUREK

An international journalistic investigation has shown that 350 companies – including Apple and Amazon – have agreements with authorities in Luxembourg allowing them to pay low taxes and avoid them in the countries in which they operate.

Some of those firms are also present in Poland. At the meeting in Brussels you said that such activity should be strongly condemned. How do you want to prevent such practices?

This situation is a side effect of globalization. Even when there is a clear case of tax avoidance, many tax mechanisms are defensible within the present legal environment in Poland. Yet, I want to underline that the majority of

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MAY 2015 • WBJ OBSERVER

“THE EU NEEDS TO PUSH UP STRATEGIC INVESTMENTS IN MANY SECTIONS OF THE ECONOMY AND INFRASTRUCTURE. the international companies operating in Poland do pay taxes here. It is the state’s duty to ensure that the field of economic competition is equal for all entities.

You have rejected recommendations of the European Union for establishing a new institution called the Fiscal Council in Poland. It has been said, that the Fiscal Council could ensure long-term strategy in the domain of financial stability. What is your comment on that matter?

Poland has not rejected this recom-

mendation of the European Council.

The essence of the matter is that we already have independent institutions in Poland, responsible for monitoring compliance with fiscal rules. These are the Supreme Audit Office (NIK), the Regional Audit Chambers, and the tripartite commission. On top of this, the Monetary Policy Council of the NBP previews the budget draft. NIK is monitoring the entire process and execution of the state budget. These independent institutions are firmly established in Poland’s Constitution, so I do not see any place for establishing a new body, which would be redundant. u

Image: Shutterstock

I think that a common investment in energy infrastructure and in other strategic economic fields in many European regions would be useful, especially because Juncker’s plan includes participation of the private sector.

C O M M E N T A RNY E /W IST

WBJ OBSERVER • NOVEMBER 2014 WBJ OBSERVER • APRIL 2015

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COVER STORY / VIDEO GAMES

PLA Y THE GAME WHEN IT COMES TO POPULAR CULTURE, POLISH VIDEO GAMES ARE AMONG THE MOST WELL-REGARDED WORLDWIDE. WHILE MOVIES LIKE “IDA” OR MUSIC COMPOSED BY PENDERECKI OR PAWLIK ARE RECOGNIZED BY CRITICS AND PEERS, THEY’RE NICHE PRODUCTS. MEANWHILE, POLISH VIDEO GAMES ARE PLAYED BY MILLIONS WORLDWIDE

THE

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history of Polish video games wouldn’t be the same if proper intellectual property laws existed here during the communist era and the first few years after its fall. The humble origins of the sector were in copying others. Homemade clones of the Pong video game were popping up left and right. Popular magazines dedicated to home electronics published whole schematics on how to make such a machine in your home.

The first Polish video game consoles, made in the 1970s and 80s were mostly carbon copies of the Magnavox Odyssey machine.

Lack of intellectual property laws did not only mean copying others, but learning from them as well. Anyone that had a computer at home in the late 80s and early 90s, flocked to a special market in Warsaw where hardware and software was sold. Just like the one on ul. Grzybowska in Warsaw, where each

Images: Shutterstock

B Y JAC E K C I E S N OW S K I

Fortnite (Epic Games Poland)

COVER STORY / VIDEO GAMES

BIGGEST POLISH GAMES

OF 2015

A NUMBER OF HUGE POLISHMADE BLOCKBUSTERS HAVE BEEN RELEASED WITH OTHERS STILL IN THE PIPELINE.

FORTNITE

(EPIC GAMES POLAND) DESCRIBED AS A CO-OP SANDBOX SURVIVAL. PLAYERS WILL WORK TOGETHER TO SCAVENGE FOR ITEMS THEY CAN USE TO BUILD THEIR FORT BY DAY AND TO DEFEND IT FROM THE ZOMBIES BY NIGHT.

THE WITCHER 3: WILD HUNT

(CD PROJEKT RED) THE FINAL INSTALLMENT OF THE WITCHER SAGA. IT’S THE BIGGEST AND MOST EXPENSIVE POLISH GAME SO FAR.

CYBERPUNK 2077

(CD PROJEKT RED) AN ACTION ROLE-PLAYING VIDEO GAME THAT WAS ANNOUNCED IN 2012, BASED ON THE CYBERPUNK SERIES OF TABLETOP ROLE-PLAYING GAMES.

DYING LIGHT

(TECHLAND) AN OPEN-WORLD SURVIVAL HORROR WITH ZOMBIES IN THE FOREGROUND.

GET EVEN

(THE FARM 51) A FIRST-PERSON SHOOTER THAT IMPLEMENTS THORSKAN TECHNOLOGY WHICH ALLOWS TO SCAN EXISTING ENVIRONMENTS AND RECREATE THEM IN THE DIGITAL WORLD.

WBJ OBSERVER • MAY 2015

23

COVER STORY / VIDEO GAMES

weekend hundreds of future coders and developers flocked to get the latest piece of software. Only thanks to piracy games, could they be up to date with the current trends, as legal software was either absent or too expensive.

Out of the underground The gaming scene, remained underground for most of the 90s. A number of Polish games were released during that period, but the vast majority of them were only published locally. Probably the first Polish-made game distributed worldwide was a real-time strategy title, Earth 2140 released in 1997. Fast forward to the present day. The Polish video game market is valued at $280 million and is the second biggest market in CEE (behind Russia) and the 23rd worldwide. Over 13 million Poles are gamers according to Newzoo.

Of the currently operating game developers, the best-known, and one of the oldest, is CD Projekt RED, founded

Dying Light (Techland)

24

in 1994. Like most of current developers it started as a distributor of foreign titles and their biggest competitors were pirates. “A pirated computer game worth £15 was being sold for £3, roughly 48 hours after its release,” said CD Projekt co-founder Maciej Iwiński. The company’s lucky break came in 1998, when they distributed a popular role-playing game – Baldur’s Gate, which sold 100,000 copies, an astounding result for the Polish market. Thanks to its success, the company was asked to distribute one of the games sequels – Baldur’s Gate Dark Alliance. The only problem was that it was a console game and those were not popular in Poland at the time, so the producers asked CD Projekt to convert the game into a PC version. And, although ultimately the deal fell through, they caught the bug and decided to start developing games. “We realized that we are just the middle man, selling someone else’s games,” said Adam Kiciński, CD Projekt

CEO. They were afraid that they are an easy takeover target and expanding their portfolio could prevent them from being aquired. So they decided to make their first game. “We devoted all the money we had and then some [to reaching this goal],” Iwiński said.

They set their eyes on the Witcher series of fantasy books written by Andrzej Sapkowski, often called the Polish Tolkien. His books are immensely popular in Poland, so there was great cross-over potential locally. “He’s in a league of his own.

If you say ʻSapkowski’ it means top-class – there is nobody else like him,” Iwiński said. Worldwide it was a different story, Sapkowski’s name was not well-known abroad, so in order for the product to be successful globally, it had to be good.

This was not an easy task, especially for a company with no developing experience under its belt. Five years and PLN 20 million later, the Witcher hit the shelves and placed CD Projekt RED on the map.

COVER STORY / VIDEO GAMES

The second installment solidified CD Projekt as a top video game developer and to this day, both Witcher games have sold over 6 million copies worldwide, won over 300 awards and are being used on every occasion as a flagship example of an innovative Polish export product.

Analysts expect Witcher 3, set to hit the shelves by the end of May, to sell 4 million copies. The studio is also developing another game – Cyberpunk 2077, which will be the first CD Projekt game without Witcher in the title, with a planned release date in 2015.

Right now, with two games in the Witcher series and a third just around the corner, WSE-listed CD Projekt is a two-headed beast. One branch is the game development business (CD Projekt RED), the other is an online distribution service GOG.com (formerly Good Old Games), which brought the company PLN 73.6 million in revenue in 2014.

Witcher 3: Wild Hunt (CD Projekt RED)

Cyberpunk 2077 (CD Projekt RED) From dictionaries to zombies Another major game developer is Techland. Founded in 1991, it’s even older than CD Projekt RED and just like its more famous peer, it started as a distributor. Soon after, the studio started publishing their own simple games, translators and other educational software. Revenue from these products helped fund their more ambitious gaming projects, first of which was Crime Cities released in 2000, a game that was in production for

six years. “Back in those days, making video games was not our main source of income, although it was definitely our main expenditure. Educational software was what brought us the cash needed to develop games. This was always a lengthy process,” said Techland founder Paweł Marchewka.

Eventually, the company developed its own game engine (Chrome in 2013) to be used in their own productions as well as sold to other developers. This put the

WBJ OBSERVER • MAY 2015

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COVER STORY / VIDEO GAMES

INDIE HEAVEN

company on the map as a serious game developer, at least locally at first. Its first major global success was in 2006 when Call of Juarez was released and sold 1 million copies. Its sequels sold even better. This year, the studio has released its biggest blockbuster so far – Dying Light.

Released in January, it sold over 3 million copies so far. It was even the top selling video game in the US in January, outselling such franchises as Grand Theft Auto or Call of Duty. In 2013, the company opened its branch in Canada. “Starting a studio in Canada opens up a wide range of new opportunities in the realm of game development,” said Marchewka, adding that it gave the company access to “a deep talent pool of educated employees.”

It’s education, stupid This last aspect (education) has been the sector’s problem for years. While there were always video game enthusiast who would give an arm and a leg to

26

work in the industry, they had no place to learn the craft. The companies, run by self-taught people as well, often had to hire internationally, because it’s hard to make highly-acclaimed games with enthusiasm only, you need skills as well.

This is slowly changing as more schools and universities offer game development courses and majors.

The last of the major game developers is Warsaw-based CI Games (formerly, City Interactive). Founded in 2002, the company, just like Techland and CD Projekt RED, is listed on the Warsaw Stock Exchange. The company started developing budget games for the first few years of its existence, with the big break coming in 2010 with the release of Sniper: Ghost Warrior, which, along with its sequel, has sold over 5.5 million copies worldwide. The third installment is currently in the works. However, the company’s most ambitious project was Lords of the Fallen. Its budget reached PLN 42 million and CI has sold nearly

1 million copies so far. The game was made by German studio Deck13 and produced by the Polish company and it won numerous awards for both, German and Polish, game of the year. CI Games and Deck13 recently parted ways due to unspecified complications and the Polish company has developed an internal team to work on the sequel.

The video game sector in Poland is truly unique. There aren’t that many Polish-made products that are this popular worldwide. The studios that formed years ago in someone’s garage or a spare room are now listed on the WSE and they’re still being run by the same people and not by multinationals. What’s most important is that they’re all innovative companies – something that is lacking in the Polish economy. u

All images: CD Projekt RED, Techland, 11 bit studios, Epic Games Poland

This War of Mine (11 bit studios)

While the game developers described in this article make mostly AAA titles (industry term used to describe highly budgeted games, equivalent to a movie blockbuster), there is a strong independent scene here as well. These smaller games usually attract gamers with a unique idea or story. Thanks to digital distribution, they can also be sold by the studios themselves. In recent months, two important Polish indie games have been released. This War of Mine (11 bit studios) differs from most war-themed video games by focusing on the civilian experience of war rather than frontline combat. Players have to make ethical choices in order to survive the siege. The second game is The Vanishing of Ethan Carter (Astronauts), a horror adventure game produced by Adrian Chmielarz, veteran of the Polish video game scene.

Both have been well received critically and commercially. This War of Mine covered the cost of its development in just two days of sales, while The Vanishing of Ethan Carter sold 100,000 copies in the first three months of its release.

COVER STORY / VIDEO GAMES

UNLOCK THE WORLD

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27

INTERVIEW / ANDRZEJ KLESYK

LOOKING FOR OPPORTUNITIES 28

MAY 2015 • WBJ OBSERVER

INTERVIEW / ANDRZEJ KLESYK

WBJ OBSERVER SAT DOWN WITH ANDRZEJ KLESYK, CEO OF THE BIGGEST INSURANCE COMPANY IN THE CEE REGION. HE TALKED ABOUT HIS UNUSUAL PAST, HOW SECRETIVE HIS NEGOTIATIONS WITH EUREKO WERE AND WHAT HIS PLANS FOR THE FUTURE ARE I N T E R V I E W B Y JAC E K C I E S N OW S K I

WBJ Observer: You had a rather unique professional start.

Andrzej Klesyk: I studied free-market economy in the 1980s and I knew that I wouldn’t find a job in my field, as there was no such thing as a free-market economy under communist rule. I had two choices, either become a taxi driver or professional dancer. I chose the latter. My wife was my dance partner, we won many competitions and we were teaching classes as well.

So how come you ended up in business after all?

Then, 1989 happened and we finally got to build a free-market economy in Poland. I started working at the Ministry of Finance thanks to Lesław Paga (economist, co-founder of the Warsaw Stock Exchange), whom I had met at university. Together we were working on the founding of the Securities Commission (now the Financial Supervision Authority – KNF). I’m sure that many people curse me to this day, because I cocreated the first exam for stock brokers, which I think no one passed and I’m sure I wouldn’t pass it today either.

Image: Lewiatan

When you became the CEO of PZU you had a very difficult task, resolve the conflict the insurer and the State Treasury had with Eureko.

I met with then Treasury Minister Aleksander Grad who complained to me that both sides can’t reach an agreement and are very far from it. We discussed how we can change it and somehow resolve the issue. I decided that the best way would be to involve Rabobank (Eureko’s shareholder) in the negotiating process. I met with its CEO in Davos and that’s how negotiations started. Although, during the whole process, our (PZU) involvement was top secret. Even official documents published at the time by the ministry did not have my signatures. Originals had them, but versions released to the public had them removed.

You’re known for having used very original methods of communication. I heard that, in order to explain your idea and calculations to the other side, you used napkins at one point.

Yes, we had to use some tools which are not common in the digital age, like faxes for example. Minister Grad told me that we can’t have anything in writing, which I thought was weird back then, but now I know it was a good decision. We wanted to write the whole thing on paper, but only after both sides reached an agreement.

WBJ OBSERVER • MAY 2015

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INTERVIEW / ANDRZEJ KLESYK

Let’s move to the present time. PZU is the biggest insurer in Poland, with 30-40 percent market share depending on the type of insurance. There is little room to grow, especially with the various antimonopoly regulations which prohibit anyone from getting too big of a share of the sector. Is this why you’ve decided to branch out into health care?

We’ve decided to split our business into three pillars. We want to maintain and even increase our position in the insurance sector. The second one is asset management, our investment fund (PZU TFI) is already one of the biggest such funds in our region. Such businesses are a logical step for many insurance companies. The third one, and it’s a new one, is health care.

It’s a huge sector that is in dire need of changes. In its current shape, the sector will not be able to sustain itself. Nearly 50 percent of adults in Poland are insured in PZU, giving us a huge advantage over the competition. There is huge potential for synergy.

The company has very ambitious plans. By 2020, PZU wants to have PLN 650 million in revenue from its health care services. The sector leader, Lux Med currently has some PLN 700 million in revenue, but it has been building its position for over 20 years and you want to achieve a similar result in only five.

When someone asks me if this is possible, I always bring up my time at Inteligo bank, which was one of the first internet banks in Poland. Back then, there were around 20,000 Poles using the internet for banking. I was saying that within 12 months we will get over 100,000 new customers. Everyone was calling me insane, but after a year, we gained 160,000 clients, while mBank had another 120,000 customers. Together, we created the market. The same thing will happen here, I hope.

But the health care market is not new and according to market researcher PMR, it is already saturated. It won’t be easy for a new company to enter it, let alone become one of the biggest providers in just five years.

The difference between a company like PZU and, for example, Lux Med is that the latter with its PLN 700,000 million revenue doesn’t even get 1 percent of the money Poles spend on health care each year (which is around PLN 100 billion). So, with all due respect it’s a marginal market share. I don’t want to take away their share, I want to create a new one.

Which is what exactly?

I’ve told my team, that they have the right to experiment, so we’ll see which ideas will become popular and which won’t. For example, a few years ago, when the drug reimbursement was a hot topic, we came up with the idea for an insurance which would protect you from the increas-

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MAY 2015 • WBJ OBSERVER

“HEALTH CARE IS A HUGE SECTOR THAT IS IN DIRE NEED OF CHANGES. IN ITS CURRENT SHAPE, THE SECTOR WILL NOT BE ABLE TO SUSTAIN ITSELF. NEARLY 50 PERCENT OF ADULTS IN POLAND ARE INSURED IN PZU, GIVING US A HUGE ADVANTAGE OVER THE COMPETITION. THERE IS HUGE POTENTIAL FOR SYNERGY.

ing price of medicine. I was sure that this would be a huge success. It wasn’t. But my employers decided to tinker with the idea and we implemented a product called “antybiotyk,” which works in a very simple way – if a doctor prescribes you an antibiotic, we will reimburse you 80 percent of its price. It’s a huge hit.

PZU is the biggest insurer, not only in Poland, but in the whole CEE region. But except for Poland you’re mostly present in small markets such as the Baltics. Do you have any plans for further international expansion in countries with larger internal markets?

I’d very much like that, but the problem is that we’re a few years behind when it comes to privatization. Our peers in Hungary or the Czech Republic have already been sold and my predecessors did not use such opportunities back than to purchase a stake in the insurance market. Now it’s too late.

You recently had the opportunity to acquire Croatia Osiguranje, which was being sold by the Croatian treasury in 2013.

Yes, but our final competitor outbid us by 30 percent. Although, I can hardly call them a competitor, because Adris Group, which bought Cro-

Images: Executive Club

That was understandable, both sides were involved in a legal battle.

Every piece of paper could be used in court.

That was a very interesting process. After both sides reached an agreement we had to pass the details to the lawyers so they could weigh in. But how to do it if you can’t write anything down? Since I was the only one who had an overview of everything, I arranged a meeting between both sides and their lawyers. On one side was Minister Grad and his lawyers and advisors and on the other side was an eight-person team representing Eureko. I was in the middle and was working out the details as an uncommitted intermediary. The lawyers would write down the information only after both sides nodded in agreement on an issue.

INTERVIEW / ANDRZEJ KLESYK

atia Osiguranje, deals in the tourism and tobacco sectors and it decided to try its luck in the insurance business.

Privatization is one thing. On the other hand, in the Baltics you have acquired companies from the private sector.

Today, no one wants to leave the insurance market. The RSA (from which PZU bought businesses in the Baltics and in Poland) had some problems, they changed their management and a rare opportunity had presented itself. We’re waiting for others, but this could take a while. We have enough capital, a few billion złotys to spend on acquisitions, so money is not a problem for us.

What about banks then? Whenever someone in Poland announces that it wants to sell a bank, you are always saying “we’ll look into this” and that’s the end of it.

The banking sector is very interesting, but in our strategy there is no place for a bank. There’s no insurer in the world who profited from owning a bank. This applies the other way around as well. There’s no synergy between those sectors.

Still, as a company which has a significant amount of money, we could act as a market consolidator.

We can invest our capital in a bank, wait a while and sell it for profit, we’re not looking into having a PZU Bank.

“AS A COMPANY WHICH HAS A SIGNIFICANT AMOUNT OF MONEY, WE COULD ACT AS A MARKET CONSOLIDATOR.

Aren’t you afraid that as a state-controlled company you might be forced into buying a bank? After all, there is strong sentiment in Polish politics to have more banks controlled

by Polish entities.

A shareholder cannot force a company into doing something. The Treasury has a 35 percent stake in the company. There are many intelligent people on our board. Currently, our shares are valued very high, we’re among the biggest insurers in the world, when it comes to price-to-book value.

And if anyone acted in a way that would be economically hurtful to PZU, its shares would plummet and so would its value. Would it be something that the Treasury would want to happen?

I think that (the current) Minister Włodzimierz Karpiński and his advisors are very intelligent people.

It all sounds logical, but please remember when the CEO of another state-run company – PGE, Krzysztof Kilian had to resign. He was against the expansion of the Opole power plant, while PM Donald Tusk was for it.

Any decision which would be negative for the value of our shares, would not only hurt us and our shareholders, but every other company, that the state has shares in. u

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COMMENTARY / START-UPS

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}

FEATURE / LABOR

POLAND – A WORKAHOLIC NATION? B Y S E R G I U S Z P R O K U R AT

P

Poles also lead the way in working on weekends. Data provided by the Polish Main Statistical Office (GUS) also show that Poles are working far beyond normal limits. The GUS report finds that nearly one million Poles work above 12 hours a day, and close to 1.2 million people have more than one workplace. Additionally, as much as 82 percent of workers put in overtime hours. The side effects include illnesses, failed relationships and a low quality of the work itself.

Image: Shutterstock

WORKING TWO JOBS, SEEKING ADDITIONAL PROJECTS AFTER WORK, STAYING AT WORK UNTIL 9 PM, NO PAID OVERTIME. THIS IS THE REALITY OF WORKING IN POLAND. HOWEVER, QUANTITY DOESN’T TRANSLATE INTO QUALITY

oles have grown fond of the observation of the famous economist Adam Smith, who said that human labor is the primary source of all goods. The amount of time Poles dedicate to work on an annual basis is 1,969 hours/worker.

In the European Union they are no match for anyone else.

The average Pole works much more than the inhabitants of many much richer countries. Americans for instance work 179 hours per year less (1,790), but even they can envy the French (1,479 hours) or German workers (only 1,379 hours). Similar information can be found from a report published a few months back by Eurostat. Meanwhile, according to the same institution, the average Pole works 41.6 hours a week.

This is well above the average for the continent. Workers in the Netherlands are on the other extreme of the spectrum: they only spend an average of 30.5 hours a week in the factory or office. In Western countries, part-time work is widespread.

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FEATURE / LABOR

Why is this happening? There are many reasons for overwork. The most often cited is the workers’ opinion that without additional work they may not get a promotion or may even lose their job. Another cause is the urge of getting ahead, buying a home or car. However, in comparison with Western European countries, Poland has lower labor productivity, meanwhile its inhabitants feel an urgent need to buy the same products as their western counterparts.

European products are within reach, but the average Pole cannot always afford them.

“If we look at experiences of other countries then it turns out, that in Poland we have a low rate of investment. In quickly-developing countries like China, it’s definitely higher, and among other reasons, it’s also due to low savings. Poles can’t save much, because they spend a lot on consumption, while funds that might be later invested mostly go to the state budget to fill the public finance deficit,” claimed Wiktor Wojciechowski, chief economist of Poland’s Plus Bank. He added that when other, western countries were at the same level of economic development, their public spending wasn’t so excessive.

Nevertheless, after communism, Poland started from a very low level of economic development and according to

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The Conference Board Total Economy Database 2014, the average value of production per hour per person was only $11 in 1993. “Now it is $26 and it’s still comparable to figures from the 1960s in the US,” said Wojciechowski.

Meanwhile, workers’ productivity does not solely depend on work time but also on other factors. The main issue is the technology employed at work.

Modern tools increase productivity. It is precisely the technological gap which is responsible for the low productivity of Polish farmers, which is still, in order of magnitude, lower than in the case of their Western European or American peers (see the box Polish farming vs. agriculture in chosen countries for more).

POLAND HAS LOWER LABOR PRODUCTIVITY, MEANWHILE ITS INHABITANTS FEEL AN URGENT NEED TO BUY THE SAME PRODUCTS AS THEIR WESTERN COUNTERPARTS.

Nevertheless, productivity is only partly due to the worker on the job. It is largely due to how this work is organized. So the fault for low productivity can also be traced to those who organize work, to Polish business.

It is no coincidence that Poles have come to love international corporations in the last decade. There is no better paid and quality workplace, because international business has high work standards and technologies, thanks to which productivity skyrockets. A Pole employed by a local company works at a workplace which is managed at lower standards, and it is also technologically

FEATURE / LABOR

Polish farming vs. agriculture in selected countries Country

United Kingdom Germany United States France Italy Czech Republic Poland Greece Hungary

Share of added value of farming in the GDP

Percentage of workforce employed in farming

Added value per worker in thousands USD, 2005 prices

2004 0.9 1.0 1.3 2.0 2.6 2.5 3.7 4.8 5.1

2004 1 2 2 4 4 4 18 13 5

2004 25.3 32.8 48.3 52.2 36.6 7.2 2.6 13.8 11.9

2013 0.7 0.9 1.3 1.7 2.3 2.6 3.2 3.8 4.4

2012 1 2 2 3 4 3 13 13 5

2013 28.2 35.2 63.3 75.1 50.5 7.2 3.3 13.3 11.5

Source: World Bank [1], data for the US concerns 2012, 2010 and 2012 instead of 2013, 2012 and 2013 respectively.

Images: Shutterstock

outdated. The lack of adequate education of workers means that small companies are no match for their international peers, which scoop up the best talent.

The basis of efficient work is a good education and a well-organized workplace, and the basis of adequate organization is prioritizing specific tasks and respecting your time and that of others. Planning work requires much discipline and engagement, but thanks to this, you do not have to repeatedly stay late at work. Unfortunately in Poland, there is still a strong conviction that the more you work the more important and indispensable you are to the company. Meanwhile, what really matters is efficiency in action, and not the workload per se. Effectiveness builds our feeling of self-worth. Firms are increasingly aware that they have to systematically support improved worker productivity. Thus employers should ensure the functionality of offices – from the provision of adequate social support services to setting aside a place for resting. Some companies offer their workers medical services and sports packages, together with flexible work options, which this is supposed to boost worker productivity.

Can you be an efficient worker if you are a tired person, who is exhausted due to additional gigs? Workers are

SMALL COMPANIES ARE NO MATCH FOR THEIR INTERNATIONAL PEERS, WHICH SCOOP UP THE BEST TALENT.

then without time to pause and think about the process – what to do so that our work can have more value?

Also, employers are still reluctant to approach the subject in a Western way, where it is better to have a worker come back on the next day with the desire for effective and innovative work during seven hours than an exhausted and sleepy person who is just looking for ways to leave work. The problem is serious, because without time for reflection and processes, with which workers think and support companies in creating value, it is difficult to survive the vicious cycle where Poland competes on low labor costs, and not the quality of products or the high level of customer service.

“Nevertheless, the state should care about attracting foreign investment, as it provides not only capital, but also technology and knowledge diffusion,” reminded Wojciechowski. He added that we shouldn’t forget that investments do not always seek cheap labor, but also places where people are educated and the conditions of doing business are stable and secure.

In recent years, the concept of “free Wednesdays” has been gaining traction in Poland. It aims to force the introduction of a new day off during the week. As John Maynard Keynes postulated, Poles will work less, once they become more productive. u

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FEATURE / FOOD DELIVERY PORTALS

e h t f f o t ho e t a l p TOO BUSY TO EAT A PROPER MEAL? ORDERING FOOD DOESN’T HAVE TO BE BORING, BLAND OR UNHEALTHY. THERE ARE PLENTY OF OPTIONS – YOU JUST NEED THE RIGHT INFORMATION PLATFORM FOR PUTTING IN AN ORDER

T

Mobility With the increased use of smartphones, restaurants have come across a new medium for reaching customers. According to dlahandlu.pl, an industry portal, three out of five Poles connected to the internet via smartphones at the beginning of 2014 and one out of every four restaurant clients used mobile apps. An average order in 2014 amounted to PLN 43.

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Images: Shutterstock

B Y M AT T H E W C Z A J A

here’s nothing more idyllic than picking up vegetables and fresh cuts of meat at a farmer’s market, checking out a good recipe and fixing a splendid meal at home. The problem is that very few people have time for such an escapade these days. On the other hand, the amount of restaurant delivery options (especially in Warsaw) are growing. Kitchens have been delivering an ever-increasing range of tastes and quality (Asian, Mediterranean or Polish cuisine is available for delivery).

Convenience is tops among younger consumers. The “Polska na talerzu 2014” Report (English: Poland on the Plate) shows that 64 percent of people aged 18-24 use the services of eateries, of which many offer delivery options. Homo Homini research institute claim that 64 percent of Poles ordered meals to home or office locations at least once over the past year.

There are many players on the food delivery portal market in Poland including: Pizzaportal.pl, Pyszne.pl, Foodpanda.pl or Roomservice.pl (Warsaw only), to name a few.

There is currently considerable foreign investment flowing into this market niche in Poland according to Gazeta Wyborcza.

>>

FEATURE / FOOD DELIVERY PORTALS

POLISH CULINARY PREFERENCE MAP

Source: Pyszne.pl

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FEATURE / FOOD DELIVERY PORTALS

Piotr Czajkowski of Wrocław-based startup Pyszne.pl is keen on reaching out to smartphone users. “We are seeing a huge increase in orders coming from our mobile application (over 30 percent month-on-month). This is why development of our mobile application is our top priority for 2015.”

Pyszne.pl offers 3,000 restaurants in its online network and has 200 new locales coming on board every month. The company has experienced 100 percent growth in the

+ PIOTR CZAJKOWSKI

– COUNTRY MANAGER POLAND AT PYSZNE.PL Piotr Czajkowski graduated from Dresden University of Technology.

Together with two colleagues, he co-founded Pyszne.pl in Wrocław in 2009. In 2010, Pyszne.pl received a grant from Polish Agency for Enterprise Development (PARP), which enabled the company to successfully test its business model. After two years, Lieferando, an online food ordering platform active in five countries, bought Pyszne.pl. This transaction ensured further financing for Pyszne.pl and Czajkowski stayed at the company as its country manager.

In April 2014, Pyszne.pl became a part of Takeaway.com group that is the largest online food ordering company in continental Europe.

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last year. “Most clients can point to about five restaurants in the area, but when they try our portal, they can see that there are literally tens of options available. This encourages them to try out something new,” Czajkowski explained.

According to Lech Kaniuk, the co-founder of the OnlinePizza Group, including the Polish branch of Pizzaportal.pl, there is a lot of room to grow in the mobile application order niche. In South Korea, 95 percent of food orders are placed via mobile apps, while 40 percent of the orders in Western Europe are made this way. Poles seem to still be more comfortable with the traditional telephone order.

An international affair Little might you know that the delivery portal trend is an international, or even global, affair. Kaniuk’s career with Pizzaportal.pl started thanks to OnlinePizza Norden AB of Sweden. After an acquisition

by Delivery Hero, the company became part of the world’s largest online food ordering network. “We use our Holding as a facilitator for best practice and a channel to share things globally. Headquarters does part of our administrative tasks, letting us focus on the local business,” commented Kaniuk.

In the case of Pyszne.pl, the storyline is homegrown. Getting their start in Wrocław, which has its share of start-up incubators, the company secured EU funds. Competition in this sector has been big and soon after, they began the search for a strategic investor and found out that a foreign partner was the best solution. Lieferando of Berlin entered the picture in 2012. Two years later, an even bigger company, Takeaway.com took over the group, hence becoming the leader in Europe, with activities in 11 countries. Pyszne.pl is part of a single system in Europe.

Innovative solutions There are plenty of interesting tools and options on the delivery market that spice up user experience. For example, Pyszne.pl has created a “Polish Culinary Preference Map” (see previous page). It shows that pizza is still tops, but Polish cuisine is the dinnertime favorite. “At the beginning, the majority of our customers seemed to use the same two or three restaurants, but we have noticed that after about five months they start experimenting with new restaurants,” said Czajkowski. Needless to say, the wide-reach and diversity of restaurant options certainly helps clients experiment with their tastes,

+ LECH KANIUK

– PARTNER AT DELIVERY HERO HOLDING AND MANAGING DIRECTOR OF PIZZAPORTAL.PL Having grown up in Sweden, Lech Kaniuk graduated from Lulea University of Technology. There, at an academic start-up incubator, he met his current business associates. Since 2006, he has cooperated with OnlinePizza Norden and in 2009, he decided to open up a company branch in Łódź, Poland. Within two years, Pizzaportal.pl acquired Netkelner.pl and Szama.pl. The 2012 sale of the brand to German investor Delivery Hero earned Kaniuk and his co-founders a hefty sum of PLN 120 million. especially in larger cities. The company’s income comes from a commission on orders – there are no adverts on its pages.

On the other hand, plain delivery sometimes won’t do for company that needs to stay on top of the market – innovation can lead to new market niches and increased sales. In the case of Pizzaportal, smart algorithms rank better restaurants higher.

“Better” is defined by many parameters and opinions are only a small part of the sorting algorithm, according to Kaniuk. Furthermore, the company wants to build its own delivery fleet to optimize and improve deliveries. A pilot in Poland is currently delivering food from McDonald’s in Warsaw. Like their peers in the sector, Pizzaportal earns 98 percent of its revenue from commissions on orders transmitted online. u

Images: Pyszne.pl, Pizzaportal.pl

>>

FEATURE / FOOD DELIVERY PORTALS

+

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ENTREPRENEURS / NEUROON

ENTREPRENEURS / WEGIRLS

GETTING YOUR BEAUTY SLEEP I N T E R V I E W B Y M AT T H E W C Z A JA Recently named finalist in Red Herring Magazine’s Top100 European start-up ranking, the NeuroOn sleeping mask can make it to the big leagues soon. We caught up with Kamil Adamczyk and Janusz Frączek of Intelclinic in their tranquil Żoliborz office to talk about sleep, medicine and their dreams

WBJ Observer: When did the light bulb go off in your heads?

Kamil Adamczyk: It started 2-3 years

ago, when we met. I was involved in the association of neurosurgery students at the Warsaw University of Medicine.

Janusz was finishing his studies at the Warsaw University of Technology. My area of interest was “the brain” and Janusz was concerned with measuring brain waves. Therefore, it quickly became apparent that there was some chemistry between us and we decided to cooperate.

As students, we naturally suffered from irregular sleep patterns.

Janusz Frączek: Our discussions led to a conclusion that it’s worthwhile to connect the world of medicine and engineering. It’s oftentimes the case that these two worlds don’t cooperate. We generated so many ideas that it was only a matter of time before we made something good happen.

Your idea won over many contributors via Kickstarter. You received almost half a million dollars to develop your project.

KA: In the beginning we received seed

capital from HardGamma Ventures. The

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ENTREPRENEURS / NEUROON

Janusz Frączek

Kamil Adamczyk

>Sleep matters

Images: Shutterstock, Jan Malinowski/WBJ

investor help was crucial in allowing us to develop our young business. “Bootstrap” start-ups [new companies not receiving outside help] often operate on a limited scale. With seed capital, we were able to plan our entry onto Kickstarter over a period of nine months. What Kickstarter did for us is validate our idea, our brand – it helped us find out if there is demand for this product. From the beginning we targeted the global market. We knew it could be sold in Silicon Valley, in Japan or in Western Europe.

JF: It was important for the investor to verify our prototype as soon as possible.

We were able to receive positive feedback relatively quickly, among others, from doctors at the Henry Ford Medical Center in Detroit. The scientific underpinnings of our project is what gives it added value.

It has real utility, instead of just being an engineering exploit.

So is the guiding principle of your product simplicity or complexity?

How much tinkering is optimal?

JF: The idea is relatively simple. People

have slept with masks on their eyes for ages. We didn’t want to build something that is a total offshoot from this culturally accepted accessory. On the other hand, we wanted to cleverly incorporate sensors and modern analysis into a sleeping mask. Our main goal was to take from the lab and

A sleep cycle lasts between 90-110 minutes. Rapid eye movement sleep accounts for about 25 percent of sleep and it is the time when most dreams happen.

During non-rapid eye movement sleep muscle tension, blood pressure, heart rate and metabolism of the brain all decrease.

Ever feel that you are staying up too late into the night? This may be a circadian rhythm disorder called “free-running.”

Free-runners often have a 25-hour daily cycle, causing them to procrastinate going to sleep (and feel sleepy at work). Exposure to light in the evening hours may be one of the factors responsible. Synchronization with environmental conditions (and sleep hygiene) may help counter the effect.

NeuroOn’s blog on all matters connected with the physiology of sleep can be used for further study (neuroon.com/blog).

make available the electronic and analytical utility of this product to an everyday consumer.

KA: In general, the idea is very simple: we wanted to create a device that helps people sleep.

People have always needed sleep.

KA: Indeed. Hence, the goal is straight-

forward. Although, the method through which the device helps people sleep better isn’t so simple. The mask first learns the user’s sleep pattern by measuring their brainwaves as well as biological rhythms.

Melatonin, the sleep hormone, is the determiner of such rhythms. In the end, we have an idea of how the user sleeps and what their day is like.

Through a light that is embedded in the mask we can trigger certain biological rhythms in the human body. It seems like a simple premise but behind this is a huge biological effect, as we are able to control the release of the sleep hormone. The analysis and calculations involved in this must be very reliable.

In today’s fast-paced world, many people use caffeine or energy stimulants to make it through the day. Is NeuroOn supposed to help increase the energy of users, or is it more for the health-conscious user?

JF: It should help in both areas. Of course it concerns the user’s health, improving sleep effectiveness. Instead of drinking five cups of coffee during a work day, it may be more efficient and healthy to simply take a power nap. It has been shown that polyphasic sleep (multiple naps in a 24-hour period) can be very beneficial.

Many people could simply benefit from learning to sleep better.

KA: Truthfully, this device influences

the quality of our sleep greatly. If we have

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ENTREPRENEURS / NEUROON

a problem with sleeping, this device will help us fall asleep more quickly. The emission of an artificial light modifies the release of melatonin. This is called “light therapy.” It does not work like sleeping pills. We won’t feel an immediate effect.

But if we allow it some time, the mask will allow us to fall asleep sooner through light therapy.

The same therapy can be used to deal with jet lag. Thanks to melatonin modulation we are able to adjust better to new time zones.

Studies have shown that waking up with light (this is called “artificial dawn”) helps reduce sleep inertia (grogginess and nausea upon waking). Another benefit that we can offer is sleep analysis. We measure sleep, divide it into phases of REM (rapid eye movement) and NREM (non-rapid eye movement) sleep. As we learn personal sleep patterns, we program the mask to the needs of the user, such as power napping.

You also have an office in San Francisco. Why California?

KA: The product is considerably more

popular in the States than in Poland, but this could simply be due to the purchasing power differences between the two countries. San Francisco is at the center of the technology start-up world. In order to achieve global success, which we are thinking about, it is necessary to be present there, to talk to people, to consumers.

It is where one-third of the world’s capital interested in new technology firms operates. On the other hand, early investments often depend on interpersonal factors.

JF: Every investor we talk to emphasizes that they want to invest in a team.

Of course, the product is important and the return on investment weighs in. Some tech ideas, such as web applications, can

>What is NeuroOn?

“WHAT [POLES] SEEM TO LACK IS AN ENTREPRENEURIAL CULTURE. ALSO, WE LACK THE OFTEN UNDERESTIMATED SOFT SKILLS NEEDED FOR PROJECT MANAGEMENT. peter out within a few months to a year.

Therefore, investors prefer to invest in a good team, even if the product isn’t fully matured yet, because they know that a good start-up ecosystem, for example in San Francisco or the one that is currently developing here in Poland, is conducive to new ideas and will yield results in the future. The publicity events that are organized here give dynamic feedback opportunities.

We’ve noticed that the atmosphere in the US is more conducive to the development of new investments. The European market has more procedures and verification criteria, which takes time. The philosophy in the States is different, although it’s not like investment money comes out of nowhere. A lot of talking and getting to know each other is necessary. Once trust is established, such a relationship can last a long time.

Taking an example from your startup, we can see that innovation (as is often said) is a driving force in our economy. Although, many specialized tech niches have already been filled.

NeuroOn acquires bioelectrical signals from your head using skin-friendly, dry electrodes, created with certified, electroconductive materials. Captured biological signals are transmitted to a microprocessor embedded into the mask and analyzed using artificial intelligence methods.

The NeuroOn gathers data, and with the help of the native app’s algorithms, delivers personalized recommendations to the user. Those include optimization of sleeping times (whether the sleep is monophasic, biphasic, or polyphasic) and durations in order to use the time available most effectively.

The NeuroOn mask can be pre-ordered for $299

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How do you see the development of Polish innovation in the 21st century?

KA: We have a lot of talented engineers,

IT specialists. Our human resources in this area are enormous. What we seem to lack is an entrepreneurial culture. Also, we lack the often underestimated soft skills needed for project management.

Poles are very modest and concerned about the opinion of others. Meanwhile, what is needed in business sometimes is unbridled enthusiasm in order to spread one’s idea. Oftentimes, our ideas are better than the ideas of our Western peers, but we don’t publicize them well enough.

Also, we must have a connection with western investors, because ultimately without them we won’t get our projects off the ground.

JF: Sometimes, inventors are mistrustful, they prefer to keep their ideas to themselves. In business, you need trust. Surveys show that in Scandinavian countries public trust (also in business relations) is at a level of 70 percent, while in Poland it hovers at about 20 percent. This often impedes the development of our projects.

The idea itself needs to be complemented with a business model: a comprehensive plan that can extract value out of an invention, whether it be an application for the use of Graphene or measuring brainwaves.

It is important that consumers understand what a given products’ utility is and that it is not just a simple fad, something that looks cool and passes with time. At least, that’s not what we’re interested in. u

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C O N G R AT U L AT I O N S A N D T H A N K Y O U Our warm congratulations to all of this year’s award winners and nominees. We take this opportunity to thank all the judges, sponsors, partners, speakers, guests and facilitators of another successful CEEQA programme for their participation and support, we wish you all a prosperous and enjoyable year ahead.

This Year’s Special Guest

HOT CHOCOLATE

Since 2003 CEEQA has played a vital role working with market leading organisations and commercial real estate professionals to highlight the achievements and opportunities of the New Europe market place to the international investment arena in association with the Financial Times.

The story has just begun.

THERE’S ONLY ONE.

May 2015

25 pages of real estate content

SECTION PARTNER

LOKALE IMMOBILIA / NEWS

>LOKALE IMMOBILIA

NEWS

l INVESTMENTS

Hines buys office scheme in Warsaw

l INVESTMENTS

l C O M PA N I E S

GTC to sell Kazimierz Office Center for €42 mln

DTZ may acquire C&W for $2 billion

G

TC GK Office, a subsidiary of Globe Trade Centre (GTC), has signed a preliminary agreement with GLL Real Estate Partners, to sell the Kazimierz Office Center project in Kraków for €42 million (PLN 171.74 million).

The final deal will be signed when certain conditions are met, including the submission of documents from the financing bank confirming the repayment of a loan.

The GTC Group, founded in 1994, is a major real estate developer in CEE and SEE, operating in Poland, Romania, Hungary, Croatia, Serbia, Bulgaria and Slovakia. u

46

Finishing work in the offices is currently under way.

The building is located on ul. Domaniewska, near a subway station. Companies from the Nestlé group will be the scheme’s largest tenants. The other major tenants are Warbud group companies and IMCD. Hines was represented by JLL on the transaction, and Kronos Real Estate was advised by CBRE. Legal representation was handled by Dentons and Góralski & Goss Legal. u

MAY 2015 • WBJ OBSERVER

D

TZ has made a bid to purchase Cushman & Wakefield (C&W), one of the world’s largest consulting companies, according to media reports from several US business journals, including Washington Business Journal.

The acquisition is to be valued at $2 billion.

The acquisition would make DTZ the second-largest real estate consulting company, right after CBRE. The transaction is to be financed mainly by a consortium of such lenders as Credit Suisse, Bank of America, Merrill Lynch and others. Their contribution would amount to $1.3 billion. u

Images: Hines, GTC, JLL

H

ines Poland Sustainable Income Fund has acquired from Kronos Real Estate the Nestlé House office building (formerly known as the Pacific Office Building), located in Warsaw’s Mokotów district. The value of the transaction has not been disclosed.

Hines has been managing the building since January of this year. Nestlé House offers over 16,400 sqm of office space and over 1,400 sqm of commercial space across eight storeys.

LOKALE IMMOBILIA / NEWS

l C O M PA N I E S

Lone Star to acquire GTC

G l INVESTMENTS

Aviva sells CH Focus Park Aviva Investors has finalized the transaction of the sale of the Focus Park shopping mall in Rybnik to Union Investment for an undisclosed sum, real estate consultancy JLL informed.

Focus Park was constructed in 2007 and has 17,850 sqm of total space. It houses 74 stores with key tenants including Alma, Bershka, C&A, CCC, Cropp, Empik, House, Mohito, New Yorker, Reserved, Stradivarius, Rossmann and Pepco.

JLL, Linklaters and Deloitte advised Aviva Investors in this transaction. u

€1.44 billion

was the real estate investment volume in CEE in Q1 2015, according to JLL estimates. The Czech Republic accounted for nearly half of the sum, €731 million, followed by Poland (€458 million) and Romania (€140 million).

lobal private equity fund Lone Star Funds applied to Poland’s antimonopoly watchdog, the UOKiK, for a purchase of 33 percent of shares in real estate developer Globe Trade Center (GTC), UOKiK informed. The acquisition will raise Lone Star’s stake in GTC to 66 percent. Lone Star said it would pay PLN 6.1 per share from May 18 until May 22 and PLN 5.5 after that period. The fund also said it does not plan to increase its stake in GTC beyond 66 percent. The deal will depend on GTC shareholders’ approval of the company’s planned share issue. u l R E TA I L

Bata exits Poland

C

zech footwear manufacturer Bata has closed all of its stores in Poland, the media reported. At the beginning of last year, Dziennik Gazeta Prawna daily informed that the firm might leave the Polish market.

Bata owned 14 stores in Poland, all of them were closed during the last several weeks, retailnet.pl reported. In 2012, the company conducted a restructuring process in its Polish business and shut down some of its outlets. u

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LOKALE IMMOBILIA / NEWS

SAMSUNG will occupy 14 floors in the tower

l OFFICE

Ghelamco’s Warsaw Spire with record-high lease also worth noting that a flexible transaction structure is highly important when it comes to large lease contracts like this one,” said Karol Patynowski, associate director, Tenant Representation, JLL. Warsaw Spire will feature a total of 100,000 sqm within three buildings and will reach a height of 220 meters upon completion, making it the second highest building in Warsaw. Building B of the complex was delivered in September 2014. The second of the two smaller buildings is nearing completion, while the main tower, which has recently been topped out, is slated for April 2016 (see interview on p. 64). u

l OFFICE

Business Garden Poznań delivered

V

astint Poland has delivered 42,000 sqm within four buildings to the Poznań market in the first phase of the Business Garden office complex. The entire development will consist of nine buildings, located at the intersection of ul. Marcelińska and ul. Bułgarska in Marcelin, a western district of Poznań. In addition to office space, the complex will offer conference rooms and a number of services, including a post office, a bank, a dry cleaners, retail stores and a canteen. u

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OFFICE

170,000 SQM WAS THE GROSS TAKE-UP IN Q1 2015 IN THE WARSAW OFFICE MARKET, A 30 PERCENT INCREASE Y/Y, ACCORDING TO THE POLISH OFFICE RESEARCH FORUM.

Images: Ghelamco, Vastint, Prologis, Grupa Waryński

D

eveloper Ghelamco has signed a lease agreement with Samsung for a record 22,000 sqm in Building A of its Warsaw Spire complex, currently under construction in Warsaw’s Wola district. The lease was signed for seven years. The tenant will occupy 14 floors of the main tower (floors 11 through 24) with an option to further expand within the building. The deal makes the entire complex 50 percent leased. JLL advised the tenant on the transaction.

“The agreement is the biggest lease transaction on the office market in downtown Warsaw. … It involves consolidating the company’s R&D functions from three different locations around the city. ... It is

LOKALE IMMOBILIA / NEWS

l WAREHOUSE

Prologis to develop 6th investment in Prologis Park Wrocław V

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rologis, industrial real estate developer will construct a speculative facility totaling 18,500 sqm at Prologis Park Wrocław V. The project is scheduled for completion in the third quarter of the year.

The facility is the sixth scheme to be built at the Prologis Park Wrocław V industrial park and Prologis’ 22nd in the Lower Silesia market. The level of occupancy in the existing portfolio of 21 facilities is 99 percent.

“High demand combined with one of the lowest vacancy rates in Poland has motivated us to continue investing in the Wrocław market,” said Paweł Sapek, Prologis senior vice president and country manager for Poland.

Prologis Park Wrocław V consists of four build-to-suit facilities totaling more than 90,000 sqm and one 27,000 sqm speculative building. It offers 141,500 sqm of additional development potential. u

l RESIDENTIAL

Apartment sales highest since 2007 In the first quarter of 2015, the number of transactions in the housing sector in Poland’s top six cities grew by 2.2 percent quarter-on-quarter, and reached 11,500, according to data compiled by residential real estate consultancy REAS. This is the highest quarterly result since Q1 2007.

Kraków saw the largest increase in apartment sales in Q1 2015, amounting to 34 percent q/q. Over the past four quarters (since April 2014), 43,500 units have been sold, 20 percent more than in 2007 and 2013, when sales reached record highs and totaled about 36,000 apartments. The report includes data from Poland’s six largest residential markets: Warsaw, Kraków, Wrocław, the TriCity, Poznań and Łódź. u

TALKING POINT

“Today, investors are interested in land used for developing office space in regional cities, land for constructing warehouses is being bought speculatively, hoteliers are also seeking attractive locations.”

Emil Domeracki, senior associate at Colliers International

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l WAREHOUSE

Jysk leases warehouse in Piotrków Trybunalski

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Numbers in the News Investments

€430 mln

was the real estate investment volume in Q1 2015 in Poland, a 52 percent drop y/y, according to Cushman & Wakefield.

Office

5.5 mln sqm

of office space will be added to the Polish market in 2015-2020, 4 million sqm of which will be delivered in Warsaw and the main regional cities, according to PMR, a research agency.

Office

300,000 sqm

of office space was leased in Poland and regional cities in Q1 2015, according to JLL. Office

15.5%

was the office vacancy level in Warsaw’s two central districts at the end of Q1 2015, up from 10.9 percent a year earlier.

Meanwhile, the vacancy rate in non-central zones decreased from 12.9 percent last year to 12.4 percent, according to the Polish Office Research Forum.

Retail

€1.39 bln

is JLL’s projected value of investment transactions in the retail segment for 2015. The retail deal volume in Q1 stood at €130 million.

Retail

642,000 sqm

of new shopping center space will be added to the Polish market in 2015-2016, which places Poland fifth in Europe, after Russia, Turkey, France and Italy, according to Cushman & Wakefield.

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THE PROJECT is valued at €700 million upon completion

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Immofinanz selected for Warszawa Główna scheme

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oland’s state-owned railway group PKP chose Immofinanz Group to further negotiate redevelopment of the former Warszawa Główna station.“We have a preliminary idea regarding the development plan for Warszawa Główna. We will be negotiating with Immofinanz exclusively,” said Jarosław Bator, PKP’s board member.

The value of the project may reach PLN 3.6 billion (€700 million). PKP will commit PLN 400-500 million from its own budget towards the investment. The investment agreement will be signed in a few months, informed Maciej Król, the CEO of PKP’s real estate subsidiary, Xcity Investment.

Warszawa Główna comprises a total

of 10 hectares of land. It is located 1.5 kilometers west of the Warsaw city center. Construction is estimated to be launched at the end of 2017/beginning of 2018. The complex will consist of 150,000 sqm of office and retail space.

PKP also plans to reopen the former railway station to passenger traffic and integrate it with the public transport system.

In September 2014, PKP shortlisted five companies in its tender for the redevelopment of the Warszawa Główna station in Warsaw: ECE Projektmanagement Polska, Europejskie Centrum Inwestycyjne ECI, a consortium of HB Reavis Poland and Polcom Investment XIII, Neinver Polska and Karam Enterprise from the Immofinanz Group. u

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l R E TA I L

Stokrotka and Polomarket join forces

Czerwona Torebka dissolves discount store chain

olish retailer Stokrotka, a subsidiary of Emperia, and Polomarket reached an agreement to establish a capital company, named Polskie Supermarkety, Emperia informed in a press release.

A joint sales department responsible for shopping policy coordination and development of a common brand as well as organization of direct import of goods will be created within Polskie Supermarkety, the press release also read. Each of the firms will have a 50 percent stake in the new entity. The merger needs to be approved by the anti-monopoly watchdog UOKiK before it is implemented.Currently, Stokrotka and Polomarket include 535 stores with an annual turnover of around PLN 4 billion. u

he Czerwona Torebka retail group has decided to withdraw from the discount store segment and dissolve its Dyskont Czerwona Torebka subsidiary. The decision was made due to “a discrepancy with economic projections.”

Market analysts say that the chain was unable to offer prices as low as its segment competitors: Biedronka, Lidl, Netto and Aldi. In April, a representative basket of 50 goods (an index measured by industry portal dlahandlu.pl) was 12.4 percent more expensive in Czerwona Torebka than in Lidl, which had the lowest prices, and 10.5 percent above the average of the four other discount chains. Unlike its competitors, Dyskont Czerwona Torebka did not offer its own branded products. u

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T

Image: Immofinanz

etailer JYSK has leased a 40,500 sqm warehouse at Logistic City – Piotrków Distribution Center, located in Piotrków Trybunalski (Łódzkie voivodeship), dlahandlu.pl web portal informed.

BNP Paribas Real Estate Poland operated as JYSK’s sole agent negotiating the deal.

Such companies as Dino, FM Logistics, ID Logistics and Logista Polska have also been leasing space in the center. u

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B Y B E ATA S O C H A

The story of Złota 44, a luxury residential high-rise right smack in the middle of Warsaw, can be told as a cautionary tale against setting your goals too high, an example of bad luck and misguided decisions or as a tale of great opportunities and success where others have failed. What chapter are the new owners of the iconic tower about to write?

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BBI Development together with its partner Amstar have recently relaunched sale of apartments at the Złota 44 building. With prices between PLN 24,000 and PLN 40,000 per sqm (average price PLN 28,000 per sqm) the new owners of the distinctive residential tower in the center of Warsaw hope to sell the entire property within the next couple of years. This is the third time the project, designed by renowned architect Daniel Liebeskind, has been put on the market.

The scheme has a long and troubled history. It was first launched in 2007, but after two years, construction and apartment sales were halted, in the wake of the global financial crisis. In 2011, when the first wave of the slowdown was over, developer Orco resumed construction of Złota 44 and topped out the 52-storey building a year later.

In July 2013, the then owner decided it was time to re-launch the sale of units in the project, but at new price levels since the hiatus: at PLN 25,000-65,000 per sqm in place of the former brackets of PLN 18,000-40,000. The price bump would have offset the extra cost accrued by the developer during the halt, had it been successful. But the new marketing strategy of placing Złota 44 above any other luxury residential project in Warsaw backfired. Not only was the price point way above any other comparable project, but the building itself, particularly the scheme’s facade, was met with hefty criticism for

Images: BBI Development

Third time’s the charm

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sqm, large, 140-200-sqm three-bedroom apartments as well as “tailor-made” penthouses of 250 sqm and above. The most attractive apartment is a 400-sqm penthouse on the top three floors of the tower.

The scheme will offer top-notch amenities, including a 25-meter swimming pool, a spa, a gym, a small private cinema with a golf simulator and a wine cellar. The residents will also have a full concierge service, which will allow them to order dry cleaning, shopping, a hot meal or baby-sitting service.

Time will tell The level of luxury is beyond question.

The only thing that remains to be seen is whether the prices set by the new owners are in tune with the market. “We believe our prices are adequate. We’ve researched the market and set the prices at market level,” said Szczepański.

Market experts are cautious, given that some 160-170 luxury apartments are sold in Poland each year, according to data compiled by residential advisory REAS for KPMG, and that a competitive project, the Cosmopolitan, was delivered in mid-2014 less than a kilometer away from Złota.

“Lowering the price was a good move.

But time will tell whether it was lowered

deviating from original visualizations.

After only six months, the developer terminated its deal with the general contractor and a few months later put the entire tower up for sale to a new investor.

“There was a number of coinciding factors that led to the project’s problems.

But the atmosphere that arose around it is a minus,” said Bartosz Turek, real estate analyst at Lion’s Bank. “The biggest problem was with the facade. The developer released visualizations where the facade was fully glazed. When it turned out it wouldn’t be, some of the buyers were disappointed,” he added.

White knights Faced with a deteriorating financial situation (a €227 million net loss in 2013), Orco was determined to cut its losses. That’s where BBI Development, backed

by US giant Amstar swooped in. The two partners purchased the tower, which had cost over €150 million to construct, for €50 million (after renegotiating the original deal of €65 million). Now, after reestablishing cooperation with the former general contractor, Inso, the project is back on track. It’s facade is nearly completed, and work is progressing on the interior.

“We want to finish construction work next year and sell over the next two to three years,” said Rafał Szczepański, vice president of BBI Development. “It’s not a bakery. It’s a limited series and you must remember that there will be no such apartments available on offer for years to come,” he added.

Złota 44 offers studio apartments of 62-70 sqm, medium-sized units of 90-120

“IT’S NOT A BAKERY. IT’S A LIMITED SERIES AND YOU MUST REMEMBER THAT THERE WILL BE NO SUCH APARTMENTS AVAILABLE ON OFFER FOR YEARS TO COME. enough. Keeping prices above those seen in the Cosmopolitan is risky. Particularly given the myths about the project that arose over time and are not always favorable,” Turek explained.

“The Złota project will likely sell over time, but whether as quickly as the Cosmopolitan remains to be seen. We should have some signals within a month or two of the sales that will allow us to make further projections,” he added. u

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Doing it right Złota 44 is Amstar’s first investment in Poland. Why this project?

We’d been looking at Poland for several years. We identified Poland as a market we wanted to be in, primarily because of its strong economic growth. No doubt, Poland is one of the strongest performing countries in the EU, evidenced by its ability to avoid a recession during the 2008-2009 global financial crisis. For us, that was a clear sign of economic stability. Poland also has growing wealth trends: a certain population base that is looking for amenities and services.

We are all human, and of course we all like nice things.

So we looked at this opportunity and we thought, “wow, this is a great concept.” The prior marketing and management of the project had simply not been properly executed. The previous price point was clearly too high and the communication with the market was not transparent. So for us to acquire it for a third of what the original investor put into it – we purchased it for €50 million – allowed us to reset the price point, but still execute the original concept, which is a high-quality, luxury residential tower.

How do you want to improve execution and communication with the market?

I think that a lot of potential buyers felt isolated before. There was no transparent communication with the market. We want to be much more open with the market, keeping it updated with the progress of the project. We also want the offer to appeal to a larger buyer pool.

I think the message before was that you can only buy an apartment here if you are among the wealthiest people in Poland.

The top one percent.

Exactly. And that’s not the case any longer. Obviously, we’ve reset the price point to be more in line with the market, making it much more affordable now.

How do you visualize the client who buys an apartment at Złota?

Do you expect clients to be mostly Polish or foreign?

It’s going to be both, but we expect 80 percent of our buyers to be Polish. That’s a combination of people located in Warsaw and throughout the country. These are professionals who are in Warsaw for business (e.g. every week), so it makes sense for them to have a second home here in the city. Many buyers will use this as their primary residence, but we anticipate some of these apartments will be second or third homes, investments, or even units for children going to university in Warsaw.

How many buyers normally purchase an apartment in a project of this class as an investment?

I think all buyers will ultimately look at this as an investment given that the long-term value of it is there. You have a stable asset, and the units will only go up in price in the long term. So it’s inherently a good investment. Some people will buy it purely as an investment asset and some will buy it as an investment to be used as a primary or secondary home. And then the other 20 percent of our buyers will be international: either US, UK, European or even Middle Eastern citizens. These are buyers who either travel to and from Warsaw and would like to have a unit here, or buyers who just see the inherent value. You’re buying a part of a world-class tower, the likes of which you see in New York or London, at a fraction of the price.

How much more expensive are such properties in New York?

At least ten times.

What about Złota 44’s competition?

There are other nice projects here, but the lifestyle Złota 44 provides

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Jeffrey E. Stonger is a vice president at Amstar, which has purchased the Złota 44 project together with BBI Development in August 2014

does not currently exist on the Polish market, and we believe the local community deserves the same level of amenities and services that other primary markets in the world have enjoyed for years.

You plan to complete apartment sales in Złota 44 within the next 2-3 years. Where do you think the luxury residential market will be then?

When I look around and assess the high-end, luxury properties, there really isn’t that much available supply. And when you compare that to a high-rise, there’s nothing on the horizon in the foreseeable future that could match this building. Thus, I think that the luxury residential market will continue to get stronger. When I compare the various offers of luxury residential buildings in Warsaw, I believe Złota 44 is at the top of its class.

What are Amstar’s plans for Poland? Any new projects on the horizon?

Nothing in the short term, as we are focused on ensuring Złota 44 is a success, but in the longer term, we are looking to build a platform here over the next three to five years. We’re a patient investor. We’re looking for the right opportunity. We’d rather do a few great deals than a large number of average deals. We do everything through local joint ventures, so for us it’s about identifying the best possible local partners first, and then finding the right deal.

Which markets are you looking at? Residential or maybe something commercial?

Amstar is a global investor, with half of its portfolio in Europe and the largest footprint in Turkey. But we have now entered Poland through our investment in Złota 44, and we will be looking to grow throughout the region, across all property sectors: office, logistics, retail and residential, either through ground development or through distressed acquisitions.

What do you think about the office market then? Isn’t Warsaw a little overcrowded?

For us, the market is indeed a bit oversupplied at the moment. We’re rotational investors, so we rotate in and out of asset classes and markets throughout a cycle. The Warsaw office market isn’t our fit right now, but we are finding interesting offices in Kraków.

What is Amstar’s usual term of investment?

It depends on each investment’s business plan. It tends to be between three and seven years. Our goal is to buy, develop or reposition, stabilize and sell. So once we execute our business plan, we look to exit the investment.

You said you were looking across the region. Which other countries are you considering?

Poland is the primary focus at the moment, given that it’s the largest and strongest performing country in CEE. However, we’ve looked at opportunities in the Czech Republic, Hungary and Romania. I think in the longer term there is an opportunity to do something in those countries as well.

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B Y B E ATA S O C H A

Open space 2.0 IT’S DIFFICULT TO SELL OPEN SPACE AS A NOVEL IDEA. WHO STILL DOESN’T WINCE AT THE IMAGE OF AN OPEN-PLAN ROOM WITH ROWS AND ROWS OF CUBICLES, EACH EQUIPPED WITH A COMPUTER, A PHONE AND AN L-SHAPED DESK? YOU WANT PIECE AND QUIET? PUT ON HEADPHONES. YOU WANT TO MAKE A PHONE CALL? COVER YOUR OTHER EAR WITH YOUR HAND AND TURN THE VOLUME UP ON YOUR PHONE. IN SUCH AN ENVIRONMENT, PRIVACY BECAME A FOREIGN CONCEPT, AND SELF-EXPRESSION WAS LIMITED TO PUTTING UP CUSTOMIZED “MOTIVATIONAL” POSTERS ON THE CUBICLE WALLS. WHY, THEN, IS OPEN SPACE BACK IN AND WHY IS MARK ZUCKERBERG BOASTING ABOUT FACEBOOK MOVING INTO THE “LARGEST OPEN FLOOR PLAN IN THE WORLD?” >> WBJ OBSERVER • MAY 2015

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Nowy Świat 2.0

O

pen space started to flourish in developed countries in the 1970s and 80s and the idea started to spread to developing economies. Proponents of the open office predicted that it would produce better inter- and intra-team communication, which would lead to increased sharing of taskrelevant information, reduce workplace conflicts and, in turn, increase job satisfaction and motivation. Psychologists studying office arrangement and its effects on productivity have indeed found that employees working in openplan offices spend far less time in formal meetings – most of their interchanges are ad hoc and informal, without decreasing efficiency.

Still, over years of implementation by most large corporations across the globe, openplan offices earned a good deal of criticism.

They were lambasted for increasing noise and stress levels, the frequency of uncontrolled and unproductive interactions, thus impeding employees’ cognitive processes and lowering

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efficiency. “Cube farms” started to be seen as dehumanizing, while people working in this environment earned the unflattering moniker of “corporate drones.”

Do it like Facebook

Now, after a decade or two of being mocked as a hive-like contraption, open space is making a come-back. But it is a completely different space than what Mike Judge’s cult comedy “Office Space” ridiculed. It is no longer regularshaped, monochromatic and boring. It has nothing in common with its 1980s counterpart. Open space is now colorful, interesting, environmentally-friendly and promotes individuality as well as interaction. The term “open space” has also undergone a major re-branding and repositioning to be associated with creativity, fun and teamwork.

As is often the case, the trend came from US tech giants the likes of Apple, Google and Facebook. In the case of the world’s top-earning IT firms, cost-cutting is likely a secondary matter,

as evidenced by the 3.5-hectare park planted on the rooftop of Facebook’s new HQ. These firms’ primary concern is to make their employees, some of the top brains in the industry, as comfortable as possible to coax out their creativity and genius. And they seem to strongly believe they can achieve that through modern and flexible open space. Facebook’s founder has even gone as far as to boast that it created “the largest open floor plan in the world.”

Skeptics could argue that the reason why the tech business may be so much in favor of open-plan offices is that their predominantly male workforce runs a very low risk of overindulging in gossiping. Tech people are known for their professional zeal – there are few other topics they find equally interesting than their work, and often work-related hobbies. And that is exactly why open space is an ideal breeding ground for tech innovation.

A general makeover

But it isn’t just tech businesses that have

LOKALE IMMOBILIA / OFFICE

“The areas we’ve designed support various types of activity.Those who need to concentrate, can use the quiet work area.”

All images: Skanska Property Poland, EY, CBRE, Shutterstock, Xplan

Arkadiusz Rudzki, Skanska

been introducing, or reintroducing, open floor plans. In Poland, the trend is in fact still lagging behind. CBRE estimates that between 3 and 5 percent of tenants in Poland operate in flexible, open office space.

“In the past, all offices were the same.

First, there were only small rooms and long corridors, plus a giant conference room that could seat 50 people. Then open space was introduced and in many buildings almost the entire work area was arranged as open space,” said Łukasz Paryś, Director of Operations, Office Projects at Bouygues Immobilier Polska.

“That is no longer the case. Now, about 20-30 percent of the space is closed. Desk sharing is also increasingly popular. If a company employs a large sales team who arrive at the office at 9 am for a briefing, leave the office and then come back at 4 pm, it’s obvious they don’t need their desks all day long,” Paryś added.

It was the consultancy firms that were first to realize there could be more to open

space than meets the eye. “Advisory firms as well as those with dominant sales departments are those that decide on such solutions. You can’t see the trend taking off among law firms, though,” said Artur Winnicki, MRICS, CCIM, and board member of Reesco, an office construction and fitout firm.

Recently, consulting giant EY unveiled the results of a major makeover of its Warsaw offices. The project, dubbed “Workplace of the Future” was aimed at boosting employee efficiency as well as optimizing company costs, the firm stated. “EY studies showed that about 30-40 percent of the office space remains unused practically at any moment of the work day,” the company said.

Same but different

Naturally, modern open space has little to do with the rows of desks or cubicles in one large room. “Such spaces used to serve a single purpose: to provide working space for employees. Now, open floor plans serve entirely different functions – providing employees with the best possible conditions for spending time at work,” Winnicki explained. There are rows of desks, but there are also quiet work rooms and phone booths for people in need of privacy, meeting rooms of various sizes (for three, five or twenty people), as well as ample recreation areas.

Last year, Skanska moved into its new open-plan office in Atrium 1, a “deep

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green” building it developed in Warsaw.

The company decided to implement an open space with hot desking in its new HQ. “Not assigning individual desks to people lets us limit the number of desks and increase free space that can be arranged in a creative way. The areas we’ve designed support various types of activity. Those who need to concentrate, can use the quiet work area which features the largest number of desks – 50 – as well as stand-up desks with adjustable height.

When we need to organize a teleconference or a formal meeting we can use one of 11 conference rooms of various sizes,” said Arkadiusz Rudzki, leasing and asset director at Skanska Property Poland.

Y-centered

As to how employees see conversion to open space, Winnicki admitted that opinions varied in the polls his firm carried out.

“From a clearly technical standpoint, employees didn’t see open space as superior to individual or two-person offices.” They do, however, see the advantages of open space in increasing efficiency. “The multipurpose nature of offices is an attempt to cater to different types of personalities in the workplace. Many of our clients’ employees see this attempt as successful,” he added.

The concept of employees sharing one desk is an acquired taste, though. “It’s hard to offer a hot desk to an accountant, who deals with a ton of documents each day.

It’s an entirely different story with sales people, who spend their working day traveling and do not need fixed workspace.

But you have to get used to it. Putting your computer and personal things away at the end of the day is something that takes time before it becomes your second nature,”

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Greener and cheaper The race for achieving maximum environmental sustainability, a concept every office developer is acutely aware of in the age of green development, is a great argument in favor of open space and hot desking. CBRE, which introduced its open space office over a year ago, claims desk sharing has managed to reduce its paper consumption by as much as 60 percent.

“When an employee has to collect all their belongings every day and put them in a small locker – it no longer makes sense to print pages that will anyway end up in the trash can at the end of the day,” said Karina Kreja, head of Workplace Consultancy and Design, CBRE. Open space with desk sharing is also increasingly valued by companies that are poised to grow over the next few years, but don’t want an unnecessary increase in their overheads.

“The motivation behind the change of the headquarters was the considerable development of the company’s activity in Poland. We needed a new office which will provide us with additional space for further expansion,” explained Colin Waddell, managing director of CBRE in Poland.

As the largest real estate consultancy worldwide, CBRE has had a unique perspective for learning from decades of experience of their clients to create the most efficient office possible, both in terms of cost-effectiveness and employee productivity.

“The flexible office concept allows companies to increase their team without extra fit-out costs, only by increasing the level at which the space is utilized. For example, flexibility level at 80 percent means a team of 100 people uses 80 desks. If the same team can increase their flexibility to 70 percent, it can create 14 new work places without any changes and fit-out costs,” Kreja explained.

E MI M MIOL BI A I L /I LA O /G IOSFTFI ICCSE L O KLAOLKEA LI M OB

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said Wojciech Kaczmarczyk, partner at Xplan, an office fit-out company.

The often-cited ideology behind the return to open space, apart from cost-optimization, is that Gen-Y employees, who experienced internet from an early age, are much more open to collaboration and teamwork than cutthroat Gen-X individualists.

“The efficient use of our offices is aimed at fostering creativity and at helping employees from different departments integrate and communicate,” said Agnieszka Maciejewska, personnel director at EY. Gen-Y professionals are also far less possessive of their space and don’t mind sharing things such as desks. “People entering the job market mainly care about being able to work from home. They also expect environmentally-friendly offices,” Maciejewska added.

Newfound equality

Sharing the same workspace with coworkers across all company echelons also makes the working environment egalitarian, which does wonders to employee morale.

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Eat, play, talk The kitchen area has definitely gained on importance in new open-plan designs. It is no longer squeezed in between the toilet and a supply closet, with no window and a tiny table for the coffee maker and a microwave. Now it is roomy, well-lit and comfortable. “Such solutions contribute to employees’ comfort and relaxation,” said Kaczmarczyk from Xplan.

“The kitchen is an important part of Skanska’s office. It is a spacious room, designed in a modern way. We all meet there every day for the breakfast our company provides. It is a great integration exercise, because we don’t always sit down with the coworkers from our own department,” explained Rudzki.

The increasing competition between companies to attract and retain talent is becoming well reflected in the non-financial incentives firms offer their employees. Y-generation professionals expect their working environment to be comfortable, green and also fun. “The arrangements we prepare increasingly often feature relaxation areas and sometimes play rooms. In our fit-out for Gdańsk-based Arla Foods we prepared a room equipped with a TV and a game console as well as table soccer. The office also features a relaxation room where e.g. nursing mothers can spend time with their babies,” Kaczmarczyk said.

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“People entering the job market mainly care about being able to work from home.

They also expect environmentallyfriendly offices.”

Agnieszka Maciejewska, EY

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Colin Waddell, the head of Poland’s CBRE office, can often be spotted sitting in a quiet work area sharing the same space with a number of his subordinates.

“Companies also want their space to be increasingly flexible, which corresponds to changes in management styles and company structure. Once, companies wanted to be located in the tallest building possible, now they prefer large horizontal spaces, which is related to the flattening of organizational structures and making them more horizontal these days. Sharing the same floor does wonders to company communication,” Paryś concluded. u

“Putting your computer and personal things away at the end of the day is something that takes time before it becomes your second nature.”

Wojciech Kaczmarczyk, Xplan

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Observer presents

LOKALE IMMOBILIA / RETAIL

Workspace optimization

by Ewelina Adamus, Research & Development Specialist, Nowy Styl Group WBJ Observer: Lately, a lot of attention is being given to workspace optimization. What does that term entail?

Workspace optimization is a multi-dimensional task. It concerns reduction of costs and space usage. On the other hand, it aims to increase the efficiency of workers, improve communication between teams and support project work. As a result, it has a positive effect on worker comfort.

The conviction that current open spaces are not fitting for effective work seems to dominate.

Open space is often associated with a large, loud room equipped with countless workstations. Modern trends seek to evolve this picture into an open space that is adjusted to the needs of the workers. It should be a comfortable office area, divided into sections for common activity types. During the design stage, workspace is divided into three macro-areas: concentration, communication and administration. Within these three, various microareas are arranged, each with its own devoted task. Silent rooms provide a quiet oasis for workers who need to focus. Telephone booths are also available for making calls. Workstations should also be adjusted to the needs of workers from a given department. Bookkeeping has different needs than sales departments.

How to design the ideal office?

There is no universal design for the ideal office. Every organization is different and has its own, specific work style and character, it unites different people, has diverse goals, a unique culture and value system. At Nowy Styl Group, we call this the DNA of an organization. Although the components are the same, their composition is unique, defining the individuality of each person. We can describe office space design similarly – the elements are the same, although the configuration differs with respect to the needs and expectations of various organizations. This is what Nowy Styl Group calls the organization’s Space Code.

The ideal office consummately fits a specific organization. To achieve this, a research process is necessary. It is the basis of all interior office design activity thereafter and has an immense effect on the self-esteem of workers.

What does a proper workspace research process look like?

An honest research process is holistic in its approach to planning office space. It takes into account the functioning of the workforce, as well as perceptions of the office and the needs associated with it. From our experience, the process lasts anywhere between three to six months and should be fulfilled through various data collection methods. Thanks to diversity of the research, our results are trustworthy and can be used to formulate recommendations for the office.

What aspects are you able to measure during the research?

The process helps us gauge the level of satisfaction and efficiency with the current workspace, workers’ level of activity, the type of activity, the particularities of various departments’ tasks, effective use of conference rooms or worker mobility. Project goals usually outline the research methods and range of tools to be used.

How do workers react to new workspace and work organization? What are their concerns and how do you assuage their fears?

Relocation or office rearrangement are felt by the entire organization. In such cases, the surroundings and the work conditions change. This fear is a natural reaction. To counteract this, we have to engage the workers in the change management process. The research process is an ideal method for getting workers involved in their future office arrangement. It’s possible to take into account the workers’ opinions by letting them name the conference rooms, educating them on ergonomics, providing information, etc. in order to gain their acceptance of the new environment. Evaluation surveys, undertaken by our research teams in Poland and the Netherlands, show that the implementation of a workplace optimization strategy provides a considerable increase in the productivity of workers and their satisfaction with their own office.

WBJ OBSERVER • MAY 2015

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No doom and gloom

While Warsaw may never become a developer’s market, the outlook is far from pessimistic for strong players with good projects I N T E R V I E W B Y B E ATA S O C H A WBJ Observer: Ghelamco has recently signed a record lease of 22,000 sqm with Samsung. How did you manage to attract the company?

Jarosław Zagórski: Poland hosts Samsung’s largest R&D center outside Asia, it is third worldwide after Korea and India and it is even bigger than the Samsung R&D center in the US. Naturally, the company was looking for a place to consolidate its three research and development centers located in Warsaw and chose Warsaw Spire, which is a perfect solution for an innovation-driven company: a modern office complex also encompassing unique public functions. It offers a great location, a lot of amenities and allows long-term expansion opportunities for our tenant.

Samsung’s consolidation is in fact quite symptomatic of the current situation in the market. Tenants expect certain guarantees regarding the possibility of expansion of their office space further down the road.

Many companies are willing to increase their employment through organic growth.

Moreover, a number of acquisitions that took place over the past few years in the aftermath of the Lehman Brothers bankruptcy are now influencing the real estate market. The leases that kept these companies in place will soon expire. These companies will tend to consolidate as well. For example, you can see a strong propensity for consolidation in the financial market. Thus, there is a number of large lease transactions planned.

How many floors will Samsung take in the tower?

The company will take fourteen floors of the tower building in the Warsaw Spire office complex: between the 11th and the 24th floor.

That’s a third of the entire tower. There’s been a lot of talk about 2015-2016 being tough years for office developers in Warsaw, but at your current rate, Warsaw

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MAY 2015 • WBJ OBSERVER

“THE CITY HAS BEEN OFFERED A TREMENDOUS OPPORTUNITY TO CREATE A NEW, MODERN CENTER: INTEGRATING PUBLIC, OFFICE AND RETAIL FUNCTIONS, COMPRISING RESIDENTIAL PROJECTS, WHICH ARE BEING DEVELOPED AND PLANNED IN THE AREA. Jarosław Zagórski,

Commercial & Business Development Director, board member at Ghelamco Poland

Spire will be fully leased by the time it is delivered.

I’m generally not in favor of preaching doom and gloom on the market. The market is demanding, there’s room for professionals only. I’m glad the times when everything was easy are over. Now, projects are being carried out by the best developers and thus the projects that come out of the pipeline are the best schemes. There is no more room for opportunists taking up commercial development just because they can, without proper ground work.

As the oversupply is being heralded by the media, I don’t agree with the opinion that there is a major problem on the

horizon. There is a key word missing in such forecasts: “potential space.” Financial institutions require at least 30 percent of the office space to be pre-leased. Thus, a number of projects that are in the pipeline are in fact on hold, looking for tenants before they can start looking for financing.

Warsaw has had some oversupply for as long as I can remember, but it is a “potential” oversupply. I’m confident in the market’s strong self-regulation mechanisms.

I will start worrying when fully finished buildings remain vacant. Now, when a company is looking for, say 10,000-15,000 sqm of space for its office and comes to a broker saying they want to move within six >>

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WBJ OBSERVER • MAY 2015

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LOKALE IMMOBILIA / INTERVIEW

>> months, what they will hear is to renew their

current lease and remain in their location because there are no such schemes available.

Another thing is Warsaw’s specifics.

There’s no other capital in Europe where the investment potential is as big as in Warsaw. Within 2.5 kilometers of the Palace of Science and Culture there are still old warehouses and areas in need of refurbishment. It’s unthinkable in other countries.

Warsaw is the city of great investment potential, and that’s why we will never have a developer’s market in Warsaw, at least not in our lifetimes.

Would you say that it generally takes longer to negotiate a deal with a potential tenant than it did a few years ago?

Yes, it definitely takes longer, but it’s a natural occurrence which should not be perceived as an issue. Tenants are now experienced, well-educated and aware of their needs. We’ve now had some 20 years of the modern office market in Poland. A typical lease lasts between five and seven years, so tenants have already negotiated their deals two or three times. Companies are experienced, better prepared and start negotiating earlier.

For us, as a developer, it is also beneficial.

We deal with people who understand their own needs and know what they want, why they want it and when they need it.

Do you think that given the recent infrastructure development, such as opening of the second subway line (with a station right outside of Warsaw Spire), rent rates in Wola will start inching closer to those in Warsaw’s core CBD? It’s hard to say, because Wola, with its great potential, can’t be too expensive. Yet, I believe that what we understand as the CBD in Warsaw should be completely redefined. Right now it ends at ul. Towarowa.

Here, the city has been offered a tremendous opportunity to create a new, modern center: integrating public, office and retail

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“There is no more room for opportunists taking up commercial development just because they can, without proper ground work. functions, comprising residential projects, which are being developed and planned in the area. The diversity of Wola will help create a healthy city fabric and thus the city center will naturally gravitate here.

Today’s teenagers growing up in Warsaw will no longer remember Wola as the “Wild West,” as it was once dubbed. After these changes happen, Rondo Daszyńskiego will be seen as part of the city center. All the other areas west of the Vistula River have either already been developed, like Powiśle and Al. Jana Pawła II, or pose significant legal problems, like the plots around the Palace of Science and Culture, where no one dares to build in fear of legal claims from the heirs of former owners. Besides, the way Al. Jana Pawła II has been developed leaves a lot to be desired. There are few public areas and open spaces around the buildings and people walk out of the buildings directly onto the street.

The advantage of the Warsaw Spire project lies in a conscious approach towards the surrounding public area. The Plac Europejski will be a place where people will want to stay and come after work for a drink and to eat out.

From what we’ve been told, your work won’t end with the Warsaw Spire complex and the Plac Europejski square in front of it. What else do you have in store at the site?

Ghelamco is also planning on refurbishing the old warehouse beside Plac Europejski square and building a glazed gazebo next to it. The former warehouse will host a grill

bar with a traditional wooden grill, serving breakfast in the morning. There are very few places in Warsaw where you can have dinner and then stay until 2 or 3 am for drinks.

The place that will open here will serve as a restaurant by day and as a bar by night.

The gazebo will house a fine restaurant called Senses: serving fresh seafood and beef from all around the world. In the C building, a sushi place will open. The building will have a retractable glass facade on the ground and second floor, so that the table area will extended onto the square itself.

The Warsaw Spire project was launched eight years ago, the construction itself in 2011. Have you ever had any doubts that it will come to fruition?

I had no doubts. I can say without a hint of arrogance that Warsaw Spire is one of the most coherent projects I have ever worked on. Granted, the beginnings were hard.

When we presented our concept, there were still military buildings here and people shook their heads. Some didn’t believe that we would ever make it, saying our concept was too large for an office building that is not in the city center. Today’s stage of development of Warsaw Spire has changed their perspective.

Many projects have indeed never left the concept stage.

We managed to succeed because we were careful not to make promises we couldn’t keep. We only announced what we were certain of. If you compare the buildings with the original visualizations of our project, they are the same. We never pretended that the Warsaw Spire project was “prestigious” or that it was in the very center. The same goes for pricing: we were very realistic about the rent levels. What we wanted to create is a friendly workplace environment and I think we’ve succeeded. We are certain about the quality of the project.

That’s why Ghelamco Poland is moving into Warsaw Spire next year. u

Observer presents

LOKALE IMMOBILIA / RETAIL

Ahead of a breakthrough Gdańsk and the rest of the Tri-City have yet to become a core market for investors, but change is coming to the northern city. With more nationwide developers getting involved, investors may soon come out of their wait-and-see mode and start scooping up office schemes Interview with Sławomir Gajewski, CEO of Torus, a Gdańsk-based office developer WBJ Observer: There is currently a lot of talk about regional office markets. Kraków and Wrocław are named as the primary locations, but Gdańsk and Poznań are gaining on importance. How does Gdańsk and the entire Tri-City attract companies to locate there?

First, Gdańsk finally has a wide range of office space to offer and its office stock is growing rapidly. Companies investing in the city can now choose from a number of options. Secondly, what distinguished the Tri-City from other regional markets is the way it is perceived: it is a good city to live in. Companies increasingly compete for talent and for the best employees, and the Tri-City has a lot to offer. It is seen as a place where people are willing to relocate for work, due to high quality of life, the closeness to seaside resorts and to other attractive regions, like Kaszuby. Companies see that as an advantage of Gdańsk.

Who builds in Gdańsk?

The city is still dominated by local developers, however that is about to change. We can already see a number of large, nationally-active developers taking up projects in the city. Hines has completed a scheme in Gdańsk. Echo Investment is developing here as well. Still, the space that has already been delivered to the market was built by local developers.

Is Gdańsk an easy market for a developer?

It definitely has its specifics. Unlike Warsaw, where you have the CBD, Mokotów and Al. Jerozolimskie, it doesn’t have one, definite office hub. It is therefore somewhat more difficult to build here. The market is more sensitive, you have to be very careful to locate your scheme well.

We have managed, together with Olivia Business Center, to create a business area of sorts, close to the Przymorze and Oliwa districts of Gdańsk. Some 140,000 sqm of office space has been completed there over the past six years. Another 100,000 sqm is in the pipeline.

You are scheduled to deliver the Alchemia office complex at the end of the year. How is its commercialization going?

At present, we are informing potential tenants that all the office space is currently under exclusive negotiations. So we are already turning new tenants down. We still haven’t signed the deals, but we are on our way. The building could well be fully commercialized six months before it is delivered. This shows how dynamic and balanced the Tri-City market is, because there is no oversupply.

What kind of investors are looking at Gdańsk? It is still seen as a rising market. On the other hand, we’ve seen a number of transactions with international funds in other regional cit-

ies, e.g. Kraków. Is Gdańsk moving towards becoming a core market?

I believe we will see a breakthrough soon. Today, it is still opportunistic capital that is interested in the Tri-City and not portfolio funds. We are waiting for this to change. Right now, portfolio funds say that the market still lacks liquidity and they are right.

There are too few transactions to create this threshold volume.

Core funds are looking at Gdańsk but are still in a wait-and-see mode. We are currently talking about selling the first phases of Alchemia and that is the sentiment I get. But I’m confident the change will come within the next five years and speculative funds will be replaced by core funds.

WBJ OBSERVER • MAY 2015

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LOKALE IMMOBILIA /CEEQA AWARDS

R

Monika Rajska-Wolińska, managing partner at Colliers International, hands the Green Leadership Award to James Piper, managing director Real Estate at Ares Capital; Richard Hallward, founder and managing director of CEEQA, and Monika Zamachowska, TV reporter, hosted the event

ROMANIA TRIUMPHS AT CEEQA

President of the Warsaw Stock Exchange Pawel Tamborski opened the awards ceremony at the CEEQA 2015 Gala

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omania had all other CEE and SEE countries beat at the recent 12th edition of the CEEQA Gala, boasting as many as three building awards: the grand award for the Building of the Year SEE (AFI Park 2 & 3 in Bucharest), as well as two statuettes for the recertification of Floreasca Park in Bucharest: RealGreen Building of the Year and the Green Leadership Award. Floreasca Park, developed by Portland Trust and completed in Q4 2013, is already a major success story. The project was already awarded, back in 2014, the Office Development of the Year award and the Building of the Year SEE, but has been since improved and recertified to the BREEAM Excellent level. This year’s success proves the developer made the right decision upgrading the scheme.

Other countries with trophies included the Czech Republic, Hungary, Poland and Ukraine (each with one statuette). Quadrio, a 16,400-sqm office scheme in Prague, won the grand award for the Building of the Year CEE. The recently refurbished Eiffel Palace in Budapest won Office Development of the Year 2015, while Atrium Felicity in Poland’s eastern city of Lublin was awarded the Retail Development of the Year. Hilton Kiev, a 262-room project completed in Q1 2014 by Saint Sophia Homes, beat out its rivals for the Hotel, Leisure & Residential Development of the Year. This is the second year in a row that a Ukrainian project won the award.

Nearly 700 regional and international real estate leaders from more than 50 countries gathered to celebrate the successes and success stories of the New Europe property sector during the past calendar year, and legendary soul funk band Hot Chocolate lit up the night with outstanding entertainment.

Great professionals The awards ceremony was opened by Paweł Tamborski, President of the Warsaw Stock Exchange. One of the biggest highlights of the evening was a live interview during the awards ceremony with sector legend David Mitzner, the founder and president of Rida Corporation & Apollo Rida. The Holocaust and Russian Gulag survivor, dealmaker extraordinaire turned 100 in April. Mitzner was awarded the CEEQA Lifetime Achievement Award for the first time exactly 10 years ago, in 2005, for his tremendous contribution of bringing international investors to the Polish real estate market. This time around, he was

LOKALE IMMOBILIA /CEEQA AWARDS

Award winners GRAND AWARDS Double Lifetime Achievement Award David Mitzner, founder and president of Rida Corporation & Apollo Rida Company of the Year Griffin Real Estate Industry Professional of the Year Monika Rajska-Wolińska, Colliers International Building of the Year CEE Quadrio, Prague, Czech Republic Developer: CPI Property Group Building of the Year SEE AFI Park 2 & 3, Bucharest, Romania Developer: AFI Europe Green Leadership Award Floreasca Park (recertification), Bucharest, Romania Developer/Owner: Portland Trust BUILDING AWARDS Office Development of the Year Eiffel Palace (restoration), Budapest, Hungary Developer: Horizon Development Retail Development of the Year Atrium Felicity, Lublin, Poland Developer: Atrium European Real Estate Hotel, Leisure and Residential Development of the Year Hilton Kiev, Kiev, Ukraine COMPANY AWARDS Developer of the Year HB Reavis Group Industrial Developer of the Year Panattoni Europe Investor of the Year P3 Logistic Parks Lender of the Year Helaba Legal and Financial Consulting Company of the Year Dentons Development Services Company of the Year Arcadis Property Management Company of the Year CBRE Construction Company of the Year Skanska SA

Images: CEEQA

Rising Star Griffin Real Estate AGENT AWARDS Agent of the Year – office agency CBRE Agent of the Year – retail & leisure agency JLL Agent of the Year – industrial agency Colliers International

Morten Lindholm, publisher of WBJ Observer, hands in the award for the Hotel, Leisure and Residential Development of the Year to Volodymr Tymochko, partner at Dragon Capital for the Hilton Kiev project

Agent of the Year – capital markets CBRE REAL GREEN AWARDS RealGreen Building of the Year Floreasca Park (recertification), Bucharest, Romania Developer Portland Trust RealGreen Developer of the Year Skanska Commercial Development Europe RealGreen Investor of the Year Deutsche Asset & Wealth Management RealGreen Services Provider of the Year Arcadis

WBJ OBSERVER • MAY 2015

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LOKALE IMMOBILIA /CEEQA AWARDS

presented with another unique accolade, the Double Lifetime Achievement Award, which he accepted via a live video conference from his home in Houston.

The Professional of the Year statuette went to Monika Rajska-Wolińska, Colliers International managing partner in Poland.

In good company HB Reavis won the Developer of the Year Award, while Panattoni Europe was named Industrial Developer of the Year.

Interestingly, P3 Logistic Parks, a developer turned proxy investor, was chosen Investor of the Year. Helaba defended its title from last year as Lender of the Year, while Dentons was recognized in the Legal & Financial Consulting Firm category for the third consecutive time.

Arcadis was awarded the statuette in the Development Service Company category for the fourth time running (previously as Arcadis EC Harris). They also snatched up the RealGreen Service Provider award. This year’s RealGreen Investor of the Year was Deutsche Asset & Wealth Management.

Skanska, which scooped up a record seven awards last year, was selected as Construction Company of the Year and RealGreen Developer of the Year. Griffin Real Estate not only scooped up the Rising Star honors, but was also chosen by electronic vote of CEEQA Gala guests as Company of the Year.

The agency that took center stage this year was CBRE, which picked up their first CEEQA awards since 2008, hitting back with a hat trick of Agency of the Year awards for the capital markets and office categories as well as Property Management Company of the Year. JLL was chosen as retail and leisure Agency of the Year, while Colliers International was selected, for the fourth time running, as industrial Agency of the Year.

The sector’s most prestigious industry awards are granted for business performance and achievement across 18 countries in Central & Eastern Europe and Southeast Europe.

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Polish born founder and president of Paul Gheysens, founder and president of Ghelamco accepting the Lifetime Rida Corporation and ApolloAchievement Rida, a previous Awardwinner of the CEEQA Lifetime Achievement Award, received a standing tribute on his 100th birthday and was presented with a Double Lifetime Achievement award sponsored by the Financial Times

LOKALE IMMOBILIA /CEEQA AWARDS

WBJ OBSERVER • MAY 2015

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CITYSCAPE / OPOLE

Did you know?

The city is known for its music festival, which has been held there since 1963, with the only exception being the cancelling of the 1982 edition due to martial law in Poland. The festival is limited to Polish musicians who perform only in Polish. Foreign artists perform at its sister-festival in Sopot.

For years, during the communist era, it was one of the biggest music events of the year. And while its popularity has decreased in the last decade or so, it still is as popular a staple of the summer TV season as it was years ago, all concerts have been shown live on TVP.

Favorite son

All the right notes

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MAY 2015 • WBJ OBSERVER

significant German-speaking minority to this day.

The city’s name is widely recognized around Poland for the National Polish Song Festival, which gathers young Polish artists and gives the audience an opportunity to meet future stars. This festival, however, is not the only that is organized in the city. The Jazz Rock Meeting, the International Percussion Festival and many more give a wide spectrum of the cultural life in the city.

Opole is the first city in Poland in terms of acquiring European Union donations per citizen. Such huge donations have helped in the development of the city’s infrastructure, renovation of the Old Town and modernization of the city’s museums.

Miroslav Klose is a German football player, who holds the record for the most goals in World Cup history (16). He was born in Opole and moved to Germany when he was 8-years old. To confuse opponents, he was known to speak Polish on the field, when playing with another Polish-born German striker Lukas Podolski. Despite being 36 years-old, he is still the top scorer of his current team, Italian side Lazio.

Images: Shutterstock, Wikimedia, um.opole.pl

T

he name “Opole” comes from the old slavic word meaning the smallest governmental unit. As the capital of the Opolskie voivodship, Opole is the central city of the region, providing workplaces, education and research facilities.

Opole was once a rich town in Silesia.

Consequently, it has experienced many memorable moments that form the city’s entangled history. From the 1241 Mongolian invasion to the Second World War, Opole seldom experienced peace. It was plagued by intrigues, sieges and annexations. In spite of this, the city was able to gather enough money to impress today’s tourist with splendid architecture. Furthermore, the area around Opole is home to a

LONDON 1,262 KM PARIS 1,135 KMLONDON 1,283 KM BERLIN 373 KM PARIS 1,226 KM BERLIN PRAGUE 354 KM 256 KM

MOSCOW 1,423 KM MOSCOW 1,265 KM

ROME 1,064 KM

PRAGUE 435 KM

ROME 1,321 KM

MAYOR: ARKADIUSZ WIŚNIEWSKI AREA CODE: 77 AREA: 96,55 SQ KM

MAYOR RYSZARD ZEMBACZYŃSKI

MAJOR AIRPORT WROCŁAW STRACHOWICE

POPULATION (DEC. 2013) POPULATION (DEC. 2012) 120,146 203,447 HIGHWAYS A4

WORKING-AGE POPULATION (DEC. 2012) WORKING-AGE POPULATION (DEC. 2012)

79,106 132,841 UNEMPLOYMENT RATE

NUMBER OF UNIVERSITIES (VOIVODSHIP)

6

NUMBER OF STUDENTS (VOIVODSHIP)

24,994

NUMBER OF GRADUATES A YEAR (VOIVODSHIP)

8,663

(JULY 2014) UNEMPLOYMENT RATE (DEC. 2013)

6.4% AVERAGE9.1% PAY

(DEC. 2013) MEDIAN PAY (2012)

PLN 3,872.66 PLN 3,719.69

MAJOR INDUSTRIES: FMCG, heavy machinery, IT, outsourcing

MODERN OFFICE SPACE MODERN OFFICE 24,400 SQM SPACE OFFICE VACANCY 45,700 SQM RATE 4.6% OFFICE VACANCY RATE PRIME HEADLINE 11.8% RENTS €8.00-€10.00 PRIME HEADLINE RENTS €9.00-€11.00

WBJ OBSERVER • MAY 2015

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OBSERVER RANKING

OBSERVER TOP 10 Technology parks

RANKED BY ROOFED SPACE

T

echnology parks are the most developed centers of innovation and entrepreneurship, whose main task is to support rising technology firms by providing technical infrastructure as well as giving substantive support.

What differentiates technology parks from one another is first and foremost the target group for offered services. The particular clients’ traits also outline a specific range of the offer. The main services offered to clients of technology parks include: operational space suited to the needs of business and research enterprises;business and administrative services; business support services, such as consulting in all matters concerning financial, marketing, law, patent office, organizational and technological issues, services supporting innovation, services helping secure external financing for companies.

In practice, parks display a large diversity in management and the range of services offered. This is mainly due to the environment in which they function. The regional economic factors, industrial traditions and the cultural entrepreneurship conditions exert significant influence on the manner and range of the parks’ functioning. Many parks offer a couple or more specializations in the fields of: IT, energy-efficiency, biotechnology.

1

Wrocław Technology Park Roofed space (sqm):

69,782

Images: Wrocław Technology Park, Shutterstock

Total area (ha): 18.1 Total number of business entities: 160 Total employment: WND Main specialization: Mixed ul. Muchoborska 18, 54-424 Wrocław +71 798-5800/+71 780-4034 wpt@technologpark.pl technologpark.pl

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MAY 2015 • WBJ OBSERVER

OBSERVER RANKING

2

5

8

Roofed space (sqm):

Roofed space (sqm):

Roofed space (sqm):

Total area (ha): 4 Total number of business entities: 82 Total employment: 2,850 Main specialization: ICT/Medical production and services ul. Trzy Lipy 3, 80-172 Gdańsk +58 739-6117/+58 739-6118 i.grajek@strefa.gda.pl gpnt.pl

Total area (ha): 12.5 Total number of business entities: 63 Total employment: 262 Main specialization: Mixed arr.czestochowa.pl

Total area (ha): 6.1 Total number of business entities: 136 Total employment: 837 Main specialization: ICT/Biotechnology/ Creative industry ppnt.pl

Gdańsk Science and Technology Park

26,384

3

Nickel Technology Park Poznań Roofed space (sqm):

24,000

Total area (ha): 33 Total number of business entities: 42 Total employment: 690 Main specialization: ICT/ Production and material services ul. Krzemowa 1, 62-002 Złotniki +61 658-6499/+61 658-5498 biuro@younick.pl younick.pl

4

Life Science Park Kraków Roofed space (sqm):

21,211

Total area (ha): 1.8 Total number of business entities: 31 Total employment: 400 Main specialization: Life science jci.pl

Częstochowa Industry and Technology Park

20,662

6

Poznań Science and Technology Park Adam Mickiewicz University Foundation Roofed space (sqm):

17,313

Total area (ha): 5.3 Total number of business entities: 98 Total employment: 134 Main specialization: ICT/Biotechnology/

Mixed ppnt.poznan.pl

13,000

9

Kielce Technology Park Roofed space (sqm):

12,817

Total area (ha): 18.2 Total number of business entities: 100 Total employment: 241 Main specialization: Mixed technopark.pl

10

Białystok Science and Technology Park

7

Roofed space (sqm):

Poznań Technology and Industry Park Roofed space (sqm):

16,939

Pomerania Science and Technology Park

12,789

Total area (ha): 35.9 Total number of business entities: 29 Total employment: 75 Main specialization: ICT/Mixed bpnt.bialystok.pl

Total area (ha): 1.3 Total number of business entities: 48 Total employment: WND Main specialization: ICT/IT pptp.pl

WND = Would Not Disclose; Collection of selected report data is thanks to cooperation of the Polish Business and Innovation Center Association (SOOIPP - www.sooipp.org.pl).

Research was conducted in February 2015

WBJ OBSERVER • MAY 2015

75

GADGETS WE LIVE IN AN AGE OF GADGETS: some are useful, but most are just a waste of time and money. We sift through the latest tech available to pick those that we believe will help you live your life more comfortably SunJack and confidently.

>>

TECHNOLOGY TO MAKE YOUR LIFE EASIER

Even when the sun isn’t shining, you can power up from the SunJack’s internal battery pack, which fully charges after 5 hours of sun. Each battery pack can power up to 4 smartphones or 1 tablet, and is compatible with any USB device including speakers, cameras or bluetooth devices.

Price:$150

Sunjack.com

The Space Saving Desktop Shredder This is the paper shredder that fits unobtrusively on a desktop and enables convenient disposal of sensitive documents. The shredder requires little space and cross-cuts paper into unreadable scraps.

The unit shreds up to six sheets at once and tears through 7' 7" of paper per minute.

Price $79.95

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MAY 2015 • WBJ OBSERVER

Price: $199.99

Keithmcmillen.com

>>

>>

The QuNexus Smart Sensor Keyboard Controller is a super-durable keyboard with smart fabric under each key which allows complete gestural control, so it also has tilt sensitivity. The keyboard is rubbery and compact, which protects against any accidental spills and dropping. It works with both Mac and Windows computers. The sound may go along with amazing light effects, because the keys light up as you hit them.

Images: Sunjack, Keithmcmillen, Hammacher, Ringly, Epson, Tablift, Wocket Wallet, Bonne O

QuNexus Smart Sensor Keyboard Controller

The base of a Tablift has three slots (10mm deep) which hold your tablet, at a preferred angle. The other side is held by a clip on a stretchy cord to hold it firmly. Then, you just bend the four arms to position your tablet exactly where you wish, as each arm has a rubber tip. Use your tablet whenever you want, without compromising comfort.

Price: $59.99

Tablift.com

Epson EB-W29 The Epson portable projector merges quality of huge installation hardware with ease of use and mobility. Small size and weight makes it a good choice for businesses on-the go. The 10.000:1 contrast along with the highest color fidelity thanks to 3LCD technology provides great picture quality even in ordinary rooms.

The device is ready to stream presentations from multiple mobile devices like smartphones or tablets.

>>

>>

>>

Tablift

Wocket Smart Wallet The Wocket Smart Wallet can store up to 10,000 cards, from credit cards to membership cards, basically every piece of plastic that has a magnetic stripe.

It doesn’t require any apps or internet connection to work. You just swipe your card and all the necessary information is stored in the smart wallet it also supports barcode, QR codes and Bluetooth payments. According to the producer it stores all info on a “tamper-proof, encrypted chip protected by your biometric voice print.”

Price: $150

Wocketwallet.com

Price: PLN 2730

Epson.com

>> Ringly

Home-made carbonated drinks are all the rage. But most of the devices on the market carbonate water with flavor syrups only. Bonne O can add bubbles to all liquids – teas, juices and even cocktails. Fancy a fizzy bloody mary? We have no idea if it’s even drinkable, but thanks to Bonne O, you can check for yourself. The other thing that separates this device from others is that it doesn’t use a CO2 tank to carbonate liquids; however, special tablets are required for the task.

Price: $150

Bonneo.com

>>

The mood rings are a long forgotten craze, but Ringly is trying to breathe new life into it. It’s a ring packed with high-tech that notifies its wearer of incoming messages or calls. It’s currently available in three versions – with onyx, moonstone and emerald stones. With four different vibration patterns, users can personalize the rings, allowing them to trigger specific events to alert you differently from others. It’s perfect for those who keep their phones buried deep inside their purses.

Bonne O

Price: $195

Ringly.com 77

Flapit Counter This counter sits in an office or retail store and can show Facebook likes, YouTube hits, and other data in real-time. It connects over Wi-Fi from a smartphone, tablet, or computer.

>>

The Noteslate SHIRO

Price: $299

Flapit.com

>>

A tablet designed for handwritten notes features a 6.8 inch, 1080 x 1440 pixel E Ink Pearl display with support for 16 shades of grey and a backlight. It consists of 8GB of storage, a microSD card slot, and a custom operating system that lets you use the device as an eReader and a note-taking tablet. It works with a pressure-sensitive pen, thanks to which you can draw pictures or compose handwritten notes.

Noteslate will put it on sale yet this year.

Price: $199

Noteslate.com

Post Modern Skateboard The Sidewinding Circular Skates or The Post Modern Skateboard consist of two 10-inch round wheels with foot platforms inside. The ‘skateboard’ operates more like a caster board in that you can ride without ever having to push off the ground.

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Price: $99.95

>>

Hammacher.com

Price: $99

Flic.io

ZutaLabs Pocket Printer

>>

Flic is a wireless shortcut button that sticks to any surface and can trigger any function on your smartphone, such as your music or calling your friends. It works up to 150 feet (50 meters). Since the button is water and dust resistant, there is no problem with using it outside. You can choose between four colors: black, white, blue and yellow. The battery can last even 5 years, so your button is technically immortal!

This portable printer moves across a sheet layed flat on a table and prints out the scanned document. You connect from your phone or laptop using Wi-Fi. The battery lasts long enough for one hour of printing.

Price: $199

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MAY 2015 • WBJ OBSERVER

Images: Zutalabs, Flic, Hammacher, Noteslate, Flapit

Flic – the wireless smart button

Who’s on top in your market?

A guide to Polish business and industry

To order contact Monika Brysiak: mbrysiak@valkea.com, www.bookoflists.pl 79

EVENTS / MADE IN POLAND

EUROPEAN EXECUTIVE FORUM WARSAW EUROPEAN EXECUTIVE FORUM WARSAW, APRIL 9-10TH 2015: LEADERSHIP CHALLENGES AT A TIME OF CREATING A NEW ORDER IN EUROPE AND IN THE WORLD

On

9th and 10th of April, the third edition of the European Executive Forum, a prestigious forum of leadership in politics and business was held in Warsaw. The main topic of this year’s congress organized by the Executive Club and President Aleksander Kwaśniewski’s ‘Amicus Europae’ Foundation was: New order in Europe and in the world - consequences for business. The Forum brought together a number of eminent personalities from the world of politics, science and economy.

Among the guests of the two-day conference at the DoubleTree by Hilton Hotel & Conference Centre Warsaw were: the former Austrian Chancellor Alfred Gusenbauer, former Deputy Prime Minister of Slovakia -

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EVENTS / EUROPEAN ECECUTIVE FORUM

change, painting an image of the modern world. The current economic and political situation is determined not so much by change, but the pace of these changes, which significantly affect the growth of the unpredictability of economic and political processes. “The moment in which we live is not easy.

You can call it chaos, the process, which has lead us to a new architecture of the world. The coming years will be full of uncertainty, unpredictability, risks in decision making and stress associated with it,” emphasized Kwaśniewski.

Another topic during the debate was the idea of a European crisis. Business representatives appealed to examples from their environment that the European economy is doing quite well.

Wojciech Szpil, President of Totalizator Sportowy, drew attention to European cultural capital: “Europe will become the place for the wise. It will become the intellectual base for the world.” A

bold idea was brought forth by Tomáš Sedlácek, who in his warmly-received speech presented European skepticism as a result of prosperity and a lack of self-fulfillment. Using a smart metaphor, he depicted Europeans as wanting to milk a cow, which has no more milk.

The final panel: “Primacy in leadership - politics or the economy” led

by Aleksander Kwaśniewski, allowed the participants to organize the key ideas that set the tone for the two-day event. In his last speech, President Kwaśniewski stressed the need to move away from dealing with economics and politics in terms of an axiology of good and evil. Politics and economy should be equal forces participating in the construction of a new order in Europe and in the world. Prof. Dariusz Rosati responded to this thesis, “In the short term, politics tends to dominate the economy, but in the long term perspective it is the economy that dominates the political scene, which is proven by the fall of great empires. The basis of social life is the economy, and politics is the organization of the distribution of economic fruits.”

Where does the future of Europe lie according to Prof. Rosati? In innovation, education and research and in a growing economy, where the dynamics should be governed by strong leaders.

The next edition of the European Executive Forum will take place in March and April 2016 also in Warsaw.

Images: Executive Forum

Ivan Mikloš, President of EY Partners in Poland and former Prime Minister of the Republic of Poland - Jan Krzysztof Bielecki, Prof. Dariusz Rosati - Minister of Foreign Affairs of the Republic of Poland in 1995-1997, Prof. Michał Kleiber - President of the Polish Academy of Sciences, and professors of the IESE Business School - Mike Rosenberg and Santiago de la Cierva, and Tomáš Sedlácek from Charles University in Prague. The panel discussion was also attended by the presidents of the most important and largest companies in Poland, such as PKN Orlen, PZU SA, SAP Poland and Microsoft Poland.

In the opening speech, Aleksander Kwaśniewski - former Polish president and co-host of the forum, drew attention to the particularly important aspect of reflection on modern leadership. As a starting point for the analysis of the role of leaders, President Kwaśniewski presented the concept of

WBJ OBSERVER • MAY 2015

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LOKALE IMMOBILIA / ON INFORMATION TECHNOLOGY

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EVENTS / EUROPEAN ECONOMIC CONGRESS

NEW EUROPEAN DEAL THE 7TH EUROPEAN ECONOMIC CONGRESS WAS HELD ON APRIL 20-22 IN THE NEW INTERNATIONAL CONFERENCE CENTER IN KATOWICE. THE EVENT WAS ATTENDED BY 7,500 PEOPLE INCLUDING: THE PRESIDENT POLAND, EU COMMISSIONERS, POLISH MINISTERS AND SECRETARIES OF STATE, MINISTERS OF FOREIGN GOVERNMENTS AND ALMOST 150 CEOS OF THE LARGEST COMPANIES, ENTERPRISES AND INSTITUTIONS FROM ALL OVER THE WORLD

Images: EEC Katowice

N

kosazana Clarice Dlamini-Zuma, Chairwoman of the African Union Commission, made her first visit to Poland since taking office in 2012, to attend the European Economic Congress.

The discussion on the €300 billion investment program for the European Union was attended by: Elżbieta Bieńkowska, EU Commissioner for Internal Market, Industry, Entrepreneurship and SMEs; Jyrki Katainen, Vice President of the European Commission, EU Commissioner for Jobs, Growth, Investment and Competitiveness; Janusz Lewandowski, Chairman of the Economic Council to Poland’s Council of Ministers, Member of the European Parliament; Markku Markkula, President of the European Committee of Regions; Janusz Piechociński, Poland’s Deputy Prime Minister, Minister of the Economy; Maricel Popa, Secretary

WBJ OBSERVER • MAY 2015

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EVENTS / EUROPEAN ECONOMIC CONGRESS

tive Europe, challenges to the global economy, new markets and new directions. Time was also devoted to sharing views and experiences in areas related to industry and the climate as well as responsible business and young participants in the European labor market.

The agenda of the European Economic Congress 2015 included numerous sessions dedicated to individual sectors of the economy and public life such as: energy and raw materials, infrastructure, transport, technologies and people, mining and metallurgy, healthcare, construction and real estate, investments, regional policies, cities, local government and the leisure industry.

Inter-regional meetings were held during the Congress: The 3rd Africa – Central Europe Economic Cooperation Forum; the 4th Europe – China Economic Forum; the Poland – South Korea Economic Forum; and the 1st Poland – Arab Peninsula Countries Economic Forum.

Among the accompanying events were award ceremonies for: the Polish Agency for Enterprise Development, CEED Institute, Top Municipal Investments and Mieszkam tu! Clever ideas for a smart city.

Ilya Ponomarev, member of the State Duma of the Russian Federation was a special guest on the second day of the Congress. He was the only member of the Duma to vote against the annexation of Crimea on March 20, 2014.

The following persons shared their knowledge and experience during the three-day debate in Katowice: Leszek Balcerowicz, Chairman of the Council of the Civic Development Forum, former Deputy Prime Minister and Minister of Finance, former President of the National Bank of Poland; Jerzy Buzek, Member of the European Parliament, President of the European Parliament in 2009-2012, Poland’s Prime Minister in 1997-2001, Chairman of the EEC Council; Miguel

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Arias Cañete; EU Commissioner for Energy and Climate Action; Vitali Klitschko, mayor of Kyiv, Chairman of the Ukrainian Democratic Alliance for Reform (UDAR) party; Horst Köhler, Germany’s President in 2004-2010, German economist and politician; Lena Kolarska-Bobińska, Poland’s Minister of Science and Higher Education; Jan Kulczyk, Chairman of the Supervisory Board of Kulczyk Investments, founder of the CEED Institute; Włodzimierz Karpiński, Poland’s Minister of the State Treasury; Carlos Moedas, EU Commissioner for Research, Innovation and Science; Ivan Mikloš, Slovak politician, Slovakia’s Deputy Prime Minister and Minister of Finance in 2010-2012 and Lech Wałęsa, President of the Republic of Poland in 1990-1995.

The agenda of the largest business event in Central Europe included the EEC – Leaders of Tomorrow project, which is aimed at creating and promoting active citizenship and increased involvement of young people in public life.

This year’s European Economic Congress in Katowice was attended by representatives of Poland’s largest companies (e.g.

Grupa Azoty, Enea, Lotos, Orlen, PGE, PKP and Tauron) and of global brands (e.g. ArcelorMittal, Fujitsu, Hitachi, ING, Kapsch and Siemens).

Images: EEC Katowice

of State in Romania’s Ministry of the Economy and László Szabó, Hungary’s Deputy Minister of Foreign Affairs and Trade, Secretary of State for Parliamentary Affairs.

The leading subjects and issues of the Congress included: the European Union’s large investment program, the role of the state in the economy, innova-

WBJ OBSERVER • APRIL 2015

84

EVENTS / EUROPEAN ECONOMIC CONGRESS

NEW EUROPEAN DEAL THE 7TH EUROPEAN ECONOMIC CONGRESS WAS HELD ON APRIL 20-22 IN THE NEW INTERNATIONAL CONFERENCE CENTER IN KATOWICE. THE EVENT WAS ATTENDED BY 7,500 PEOPLE INCLUDING: THE PRESIDENT POLAND, EU COMMISSIONERS, POLISH MINISTERS AND SECRETARIES OF STATE, MINISTERS OF FOREIGN GOVERNMENTS AND ALMOST 150 CEOS OF THE LARGEST COMPANIES, ENTERPRISES AND INSTITUTIONS FROM ALL OVER THE WORLD

Images: EEC Katowice

N

kosazana Clarice Dlamini-Zuma, Chairwoman of the African Union Commission, made her first visit to Poland since taking office in 2012, to attend the European Economic Congress.

The discussion on the €300 billion investment program for the European Union was attended by: Elżbieta Bieńkowska, EU Commissioner for Internal Market, Industry, Entrepreneurship and SMEs; Jyrki Katainen, Vice President of the European Commission, EU Commissioner for Jobs, Growth, Investment and Competitiveness; Janusz Lewandowski, Chairman of the Economic Council to Poland’s Council of Ministers, Member of the European Parliament; Markku Markkula, President of the European Committee of Regions; Janusz Piechociński, Poland’s Deputy Prime Minister, Minister of the Economy; Maricel Popa, Secretary

WBJ OBSERVER • MAY 2015

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EVENTS / EUROPEAN ECONOMIC CONGRESS

tive Europe, challenges to the global economy, new markets and new directions. Time was also devoted to sharing views and experiences in areas related to industry and the climate as well as responsible business and young participants in the European labor market.

The agenda of the European Economic Congress 2015 included numerous sessions dedicated to individual sectors of the economy and public life such as: energy and raw materials, infrastructure, transport, technologies and people, mining and metallurgy, healthcare, construction and real estate, investments, regional policies, cities, local government and the leisure industry.

Inter-regional meetings were held during the Congress: The 3rd Africa – Central Europe Economic Cooperation Forum; the 4th Europe – China Economic Forum; the Poland – South Korea Economic Forum; and the 1st Poland – Arab Peninsula Countries Economic Forum.

Among the accompanying events were award ceremonies for: the Polish Agency for Enterprise Development, CEED Institute, Top Municipal Investments and Mieszkam tu! Clever ideas for a smart city.

Ilya Ponomarev, member of the State Duma of the Russian Federation was a special guest on the second day of the Congress. He was the only member of the Duma to vote against the annexation of Crimea on March 20, 2014.

The following persons shared their knowledge and experience during the three-day debate in Katowice: Leszek Balcerowicz, Chairman of the Council of the Civic Development Forum, former Deputy Prime Minister and Minister of Finance, former President of the National Bank of Poland; Jerzy Buzek, Member of the European Parliament, President of the European Parliament in 2009-2012, Poland’s Prime Minister in 1997-2001, Chairman of the EEC Council; Miguel

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MAY 2015 • WBJ OBSERVER

Arias Cañete; EU Commissioner for Energy and Climate Action; Vitali Klitschko, mayor of Kyiv, Chairman of the Ukrainian Democratic Alliance for Reform (UDAR) party; Horst Köhler, Germany’s President in 2004-2010, German economist and politician; Lena Kolarska-Bobińska, Poland’s Minister of Science and Higher Education; Jan Kulczyk, Chairman of the Supervisory Board of Kulczyk Investments, founder of the CEED Institute; Włodzimierz Karpiński, Poland’s Minister of the State Treasury; Carlos Moedas, EU Commissioner for Research, Innovation and Science; Ivan Mikloš, Slovak politician, Slovakia’s Deputy Prime Minister and Minister of Finance in 2010-2012 and Lech Wałęsa, President of the Republic of Poland in 1990-1995.

The agenda of the largest business event in Central Europe included the EEC – Leaders of Tomorrow project, which is aimed at creating and promoting active citizenship and increased involvement of young people in public life.

This year’s European Economic Congress in Katowice was attended by representatives of Poland’s largest companies (e.g.

Grupa Azoty, Enea, Lotos, Orlen, PGE, PKP and Tauron) and of global brands (e.g. ArcelorMittal, Fujitsu, Hitachi, ING, Kapsch and Siemens).

Images: EEC Katowice

of State in Romania’s Ministry of the Economy and László Szabó, Hungary’s Deputy Minister of Foreign Affairs and Trade, Secretary of State for Parliamentary Affairs.

The leading subjects and issues of the Congress included: the European Union’s large investment program, the role of the state in the economy, innova-

WBJ OBSERVER • APRIL 2015

84

LIFESTYLE / NOWY WILANÓW

B Y V E D I K A LU T H R A

FROM FIELD TO FORK Buying produce at a local farmers’ market is a longlasting tradition, one that becomes more established by the day. Mounds of voluptuous looking tomatoes pile up high in a crate next to an array of homemade jams. Stacks of farm fresh eggs are bundled up by the dozen – it’s a feast for the eyes as much as it is for the stomach.

Poland’s agricultural abundance is obvious (just look out of your window when traveling across the country). So, thankfully, it is rich in farmers’ markets as well. Goods aren’t limited to food, items range from household necessities such as cleaning liquids to clothing to

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freshly cut flowers. Nowadays, people constantly emphasize the importance of supporting small-scale businesses that focus on quality as opposed to volume. Buying goods from farmers’ markets is the perfect opportunity to do so.

The typical farmers’ market is ubiquitous – you’ll be able to find at least one in each town. But Warsaw is currently undergoing a food revolution as dietary trends dominate the industry. These ideas are being reflected in markets, particularly those located in Warsaw. These trends give rise to modernized markets that slightly stray from the traditional structure. Young

locals with a passion for food gather at these areas to sell their goods, usually following the guidelines of a health food trend (the gluten-free diet, veganism, etc.). For instance, Biobazar is a purely organic market that sells a range of unique organic produce in addition to cakes and organic beverages.

But regardless of the type of market, the whole idea is to buy produce directly from a farmer or producer, integrate more into the Polish culture and really understand where your food comes from. Today, it isn’t difficult to locate a farmer’s market, there are hundreds.

Here are some of my favorites.

LIFESTYLE / FARMER'S MARKETS

FARMER’S MARKET “BAZAREK NA DOŁKU” IN URSYNÓW UL. BRACI WAGÓW 22 MON-SUN: 8 AM TO 7 PM This is more like your traditional farmers’ market. It appears as if the hustle and bustle of people never stops. At the butcher’s, you’ll be able to find a variety of sausages and hams. Here, you can always count on purchasing interesting produce. Golden raspberries, pearl onions – you name it. At this market, you’ll also be able to buy clothing, antique items and freshly cut flowers.

BAZAR SADYBA UL. KONSTANCIŃSKA 2 MON-FRI: 7 AM TO 6 PM SAT: 7 AM TO 3 PM

MOKOTÓW (APRIL-SEPTEMBER): INTERSECTION OF UL. PUŁAWSKA AND UL. WORONICZA (SKWER GRUPY AK “GRANAT”) SUNDAYS: 9 AM TO 4 PM Warsaw’s breakfast market in Żoliborz has been operating for several years now and due to its popularity, they’ve expanded to a few locations, all situated in parks. The market takes place on weekends during the summer season, while in Żoliborz it operates year-round making use of a local school building. All locations are great for a bike trip. Unlike a traditional farmer’s market, targ śniadanowy takes the fresh ingredients and transforms them into drool-worthy meals. You’ll be able to find food trucks that sell cuisine ranging from Ethiopian to Mexican in addition to traditional food stands that sell fresh produce. It’s also kid-friendly, which is always a bonus when planning a family excursion. Good music, good food, good ambiance.

This market is more popular with the expat community, as it is located in close proximity to the French and British schools. On Saturday, you can count on having to sift through a large crowd. However, on weekday afternoons, it’s nice to do some shopping in a more relaxed atmosphere. We always buy our bread near the Sadyba Bazar entrance. You can identify the store by the scent of freshly baked goods and by the long queue of customers hungrily waiting for their turn.

FARMER’S MARKET AT HALA MIROWSKA PLAC MIROWSKI 1 WEEKDAYS: 7 AM TO 9 PM SATURDAYS: 7 AM TO 6 PM Formerly a bustling trade center, Hala Mirowska was destroyed during the Warsaw Uprising in 1944. The evidence of World War II can still be seen today when examining the bullet-riddled walls of the historic building. Because of its central location, the farmers’ market at Hala Mirowska tends to be the number one place for local restaurants to buy their produce. While it isn’t as picturesque as a farmers’ market in France, Hala Mirowska is authentic to Poland and its culture.

BIOBAZAR UL. ŻELAZNA 51/53 WEDNESDAYS: 10 AM TO 6 PM SATURDAYS: 8 AM TO 4 PM Situated in a crumbling structure that survived the Second World War, Biobazar offers insight into Poland’s rich history combined with a new food trend. At this market, you’ll be able to find freshly baked organic goods, jams, all sorts of foods and seasonal produce in addition to unique goods like butternut squash, gluten-free noodles, kale and tomatillos. If you’re into the whole slow food movement, this is your kind of market.

Images: Shutterstock, Vedika Luthra

“TARG ŚNIADANIOWY” BREAKFAST MARKET SOME OF THEIR LOCATIONS INCLUDE: ŻOLIBORZ (YEAR-ROUND): ALEJA WOJSKA POLSKIEGO 1 SATURDAYS: 8 AM TO 4 PM POWIŚLE (APRIL-SEPTEMBER): INTERSECTION OF UL. ROZBRAT AND UL. SZAREJ SATURDAYS: 9 AM TO 4 PM

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LIFESTYLE / NOWAK ON THE JOY OF FOOD

MACIEJ NOWAK FOOD CRITIC

Coffee rulez

The

Coffee time fever is not new to Poland, because Poles started drinking coffee in the 18th century. There were dozens of cafes and coffee connoisseurs. Warsaw and Poland were at the European forefront of coffee brewing. In Poland, you will find coffee prepared in dozens of ways.

According to the recently published Poland on the Plate 2015 study, the coffee market in Poland still has great potential for development. Within one year, the number of people who have never visited a café decreased from 35.9 percent to 29 percent. New customers are mainly attracted to coffee chains, which are visited by 20 percent of Poles, while a year ago they accounted for only 11 percent of the clients. Local neighborhood cafes’ market share has declined from 74 percent last year to 56 percent today. The rule described by Naomi Klein in No Logo seems to be reaffirmed in practice: coffee chains destroy traditional coffeehouses. This is an unstoppable civilization change. But we can resist the trend and instead of going to corporate venues, enjoy such wonderful oases of old Warsaw gastronomy as the two coffeehouses located across from each other on ul. Nowy Świat – Amatorska and Piotruś. Coffee there is not worse than the one served by the giants, and you can also drink an honest vodka in colorful company! u

Image: Shutterstock

foundation of Polish gastronomy has always been vodka. There was a common belief that income from serving food is just in addition to the real money, which the sale of alcohol ensures. Actually, no one treated and does not treat seriously a premises without an alcoholic beverage license. A fixed image in the minds of professionals, but also in literature, movies, and general public opinion. All of a sudden, about a decade ago, the folk wisdom changed. Coffee chains entered the market, offering a huge variety of coffees and no alcohol. Initially, we looked at it in amazement, not convinced by this western trend.

Pretty soon, Warsaw warmed up to these types of venues. Sociologists began to talk about the latte environment and modern participants of the transformation who were ready for change and mobility, symbolized by the coffee-to-go in a cardboard cup.

Gastronomes also found coffee to be a great deal, maybe even better than vodka. First of all, it is much less troublesome, because it does not require official approvals. In addition, experts say that the cost of one cup of coffee, taking into account the raw materials, employee salaries, rent, and depreciation of equipment is more or less one złoty, while it is sold for about ten złoty. Bingo! Brewing coffee is just great business, like a goose that lays golden eggs.

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