WBJ #1 2012

A review of Jerzy Buzek’s term as president of the European Parliament

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Tensions between Iran and the West are rising. What’s Poland’s stance?

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WWW.WBJ.PL

WBJ asks the analysts to name their top stock picks for the first quarter of 2012

VOLUME 18, NUMBER 1 • JANUARY 9-15, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Bear-ly understood

Since 1994 . Poland’s only business weekly in English

Artful investment SHUTTERSTOCK

A maturing market means investment in Polish artwork can bring tidy returns 12-13

Professor Stanis∏aw Bieleƒ argues that Poland should take a more objective look at Russia 8

REAL ESTATE Lokale Immobilia • Theme parks • Skanska offices • Notus interview 15-18

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . . .8 Europe . . . . . . . . . . . . . . . . . . . . . . .9 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Prescription for disaster

Tusk the euroskeptic

New regulations on prescription-drug reimbursements have both doctors and patients up in arms

The prime minister raised eyebrows with his “euroskeptic” comments. Is he just trying to pander to the electorate?

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NEWS

www.wbj.pl

Numbers in the News

Bartosz Ar∏ukowicz

z∏.1 billion was the average daily turnover on the Warsaw Stock Exchange in 2011.

z∏.250.6 billion was the total annual value of shares traded on the Warsaw Stock Exchange in 2011, z∏.20 billion higher than in 2010.

z∏.56.6 million is the fine PZU will have to pay after the Office of Competition and Consumer Protection ruled that its agreement with Maximus Broker harmed competition.

48.8 points

Poland’s Oscar candidate

Prime Minister Donald Tusk changes tack regarding his pro-EU mentality, in light of the increasing problems in the euro zone.

Figures in focus Internet noobs Percentage of individuals aged 16-74 who have never used the internet, selected EU countries in 2011 60 50 40 30 20 10

Ita ly Gr ee ce Ro ma nia

ny hR ep ub EU lic 27 av era ge Po lan d

0

Cz ec

icz studied medicine at the Pomeranian Medical University in Szczecin. He subsequently worked in a number of public health-care facilities and also set up his own practice.

Mr Ar∏ukowicz has been active in politics since the early 2000s, having been elected to Szczecin’s City Council (with support from the Democratic Left Alliance) in 2002 and the Polish Parliament (from the Left and Democrats coalition list) in 2007.

In May 2011, Mr Ar∏ukowicz became a secretary of state in the Chancellery of the Prime Minister and PM Tusk’s plenipotentiary for tackling social exclusion. He joined the ruling Civic Platform party’s parliamentary caucus after being elected to parliament on the party’s platform in October 2011.

Source: Eurostat

Company index

Adam Zdrodowski

A.T. Kearney ..............................16 Deutsche Bank ..........................13 Mermaid Properties ..................16

On WBJ.pl

Abbey House ..............................12 Dom Kredytowy Notus ..............17 Mieszko ........................................6 Alior Bank ........................6, 12, 13 DTZ ............................................16 Millennium ................................12 Amber Room ..............................22 Echo Investment ........................16 Millennium Dom Maklerski ........6

Inside Zach´ta Gallery Anna Tomczak, a curator at one of Poland’s most renowned art galleries, the Zach´ta National Gallery of Art, offers a glimpse of what’s happening on the Polish art scene. Find out what’s hot and what’s not while Ms Tomczak explains the inner workings of the gallery and which Polish artists we should watch out for in the future.

Regiment disbanded

DATELINE

Poland’s 36th Special Air Transport Regiment was officially disbanded last Tuesday following the ceremonial lowering of the regiment’s flag at the Warsaw-Ok´cie military airport. The decision was made after the release of the official Polish report into the Smolensk tragedy, which occurred when a Polish Air Force Tupolev Tu-154M aircraft crashed in bad weather, killing 96 people. ●

motion of no confidence concerning Mr Ar∏ukowicz. As WBJ went to press, however, it was not yet entirely clear whether such a motion would have any chance of success.

Meanwhile, it emerged that the reimbursement issue may not be the only major problem on the health minister’s plate.

Media attention has recently focused on a planned IT program for the health-care services that may fall flat.

The z∏.712 million project was expected to revolutionize Poland’s health-care system by enabling patients to register online and by giving doctors online access to patients’ medical data. However, implementation has been delayed and investigators have found irregularities in the tender procedure.

Born in 1971, in Resko, Northern Poland, Mr Ar∏ukow-

UK

Jerzy Kluger, a Polish Jewish friend of the late Pope John Paul II, died in Rome last week at the age of 92. Mr Kluger and John Paul II (then Karol Wojtyla) were schoolmates in Wadowice but lost touch following the outbreak of WWII. After the war Mr Kluger moved to Rome and was eventually reunited with the future Pope in 1965.

He was present in Rome’s synagogue in 1986 when Pope John Paul II called Jews “our beloved elder brothers.”

Polish Health Minister Bartosz Ar∏ukowicz, whose term in office began in November, has gotten off to a rather unfortuitous start.

At the beginning of the year a new law governing prescriptions and medication reimbursement came into force. The law has resulted in widespread confusion among patients, doctors and pharmacists.

The law requires that a patient’s eligibility for receiving state reimbursements for medication be verified. But a lack of agreement on how the verification process is to work has meant that many patients have been forced to pay the full price for drugs they would normally receive at a discount. Some of the medications can cost thousands of z∏oty.

The opposition Law and Justice party has already announced it will submit a

“I’m a common-sense euroskeptic, without any unhealthy fascinations.”

ma

JPII’s Jewish friend dies

Quote of the Week

EAST NEWS

“In Darkness,” a Polish, German and Canadian production and Poland’s pick for best foreign language film at this year’s Academy Awards, premiered in Poland last week. The Polish president and first lady were in attendance, as well as the minister of culture and famous Polish film director Andrzej Wajda. This is director Agnieszka Holland’s third feature film on the Holocaust, and also her third Oscar nomination.

was the PMI index for December 2011, lower than the 49.5 points recorded in November.

Ge r

Andrzej Sobiepan, a student at the Academy of Art and Design in Wroc∏aw, decided to hang up one of his paintings at the National Museum in Wroc∏aw, taking advantage of a moment of inattention from the museum’s security team.

Mr Sobiepan told TVN24 he did not want to “wait 30 or 40 years” before his work was displayed in such places. It took the museum staff three days to notice that a new piece of artwork had been displayed on their walls.

IN THE SPOTLIGHT

ed en Ne the rla nd s

Shortcut to success

JANUARY 9-15, 2012

Sw

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January/February

Artur Jasiƒski i Wspólnicy

Echo Investments ........................6 Noble Bank ................................12

Biuro Architektoniczne ..............16 Eiffage Budownictwo Mitex ......16 Peter Nielsen & Partners ..........6 Auchan Polska ..........................18 Emperia........................................6 Polswiss Art ..............................13 Azoty Tarnów ................................5 Enea..............................................6 PwC ............................................16 Bank BPH ....................................6 Erbud ..........................................18 PZU ......................................2, 5, 6 Bank Gospodarstwa Krajowego ..7 Fortuna ........................................6 Qumak-Sekom ............................6 Bioton ..........................................6 Galeria Art NEW media ......12, 13 Raiffeisen Bank Polska ............16 Blackstone ................................16 Helios ........................................16 Samsung Electronics ................16 Bose International Planning and

HSBC ............................................7 Shogun Bros ..............................23

Architecture................................16 ICIS ..............................................5 Skanska Property Poland..........15 Bouygues Immobilier ................16 IKEA ............................................18 Unidevelopment ........................15

JANUARY

FEBRUARY

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TAXATION AND ACCOUNTING CONGRESS

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MTT WROCLAW 2012

Event:

This event aims to deepen participants’ knowledge on recent developments in the field of tax and accounting, as well as to create a platform for a comprehensive exchange of views on the practice of implementing the provisions.

Location: Hotel Hilton, Warsaw kpmg.com/pl

Event:

This event bills itself as the largest trade exhibition in Poland devoted to the travel and tourism industry. It will feature a wide range of products and services relating to the industry as well as major industry players including tourist boards, resorts, travel clubs, airlines, travel agencies, and many more.

Location: Hala Stulecia, Wroclaw mttwroclaw.pl/en

BPT Optima ................................15 IVG Immobilien ..........................16 Union Investment ......................16 BRE ............................................12 Jones Lang LaSalle ..................15 Warsaw Stock Exchange ......2, 16 British Telecom ..........................16 KBC Securities ............................5 Wicked Audio..............................23 Budimex ......................................6 KGHM ..........................................5 WSE ..............................................6 Budizol........................................16 KPMG..........................................12 X-Trade Brokers Catalyst Capital ..........................15 Las Palm ....................................18 Dom Maklerski ..........................19 Concept Development Group ....15 LG ..............................................23 Xelion..........................................12 Cushman & Wakefield ........15, 18 Master Management Group ......16 Yareal Polska..............................16 Deka Immobilien........................16 Maximus Broker ......................2, 5 Zak∏ady Azotowe Pu∏awy ............5 DESA Unicum ............................13 Màka Sojka Architekci ..............16 Zelmer..........................................6

NEWS

JANUARY 9-15, 2012

www.wbj.pl

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Prescription-drug laws

Changes to prescription-drug laws have led to protests, confusion and frustration among patients and doctors alike New regulations introduced at the start of the year concerning reimbursements for prescription drugs have caused anger among doctors, confusion among pharmacists and frustration among many patients.

The new legislation requires doctors to verify and then note on any prescription they issue the precise level of reimbursement to which a particular patient is entitled, as well as to verify that the patient is indeed insured. Previously, doctors had taken patients at their word.

According to the new rules, doctors can be fined if they fail to follow the regulations or miscalculate a patient’s level of reimbursement. But many doctors say verification of insurance is too difficult, since there is no centralized database containing information on who is insured.

In protest, thousands of doctors across the country declined

to fill out prescriptions according to the new regulations, choosing instead to issue them with a stamp stating: “reimbursement level to be determined by the National Health Fund.”

Thus began what the media has now dubbed “the stamp protests.”

‘Someone screwed up’ “The obligation to check insurance in a country where almost everybody is insured, the requirement to check the level of reimbursement for drugs … the fact that our annotation has no influence on the price level but still we can be fined for not putting it there – these all indicate bad intentions or the fact that someone screwed up writing the new law,” Konstanty Radziwi∏∏, vice president of the Supreme Medical Council (NIL), the main professional association for Polish doctors, told radio station Tok FM. The doctors’ protest prompted numerous pharmacies to demand that patients pay the full cost of some drugs.

A number of chemotherapy patients, for example, were required to pay z∏.3,000 for a drug which they had previously

Corruption allegations

been able to buy for z∏.3 thanks to the National Health Fund’s reimbursement policy.

Doctors say they don’t have ready access to information about who is or is not insured and that the National Health Fund should therefore issue documents to patients which would allow doctors to verify the patient’s insurance status on the spot. At present, doctors say, they have been given an extra layer of bureaucracy, which eats into time they could be using to treat patients.

The crisis had escalated to such a scale last Wednesday that Prime Minister Donald Tusk himself felt compelled to address the situation. The prime minister said that he was willing to suspend the policy of fining doctors who miscalculate reimbursement levels until a centralized system is introduced that gives them prompt access to the necessary information about patients.

After a meeting between the Supreme Medical Council and the Ministry of Health last Wednesday night, the Council announced that it would appeal to doctors to end their protests.

However, on Thursday morning, Krzysztof Bukiel from

REPORTER

Health-care chaos marks start of new year

Polish media have dubbed doctors’ maneuver “the stamp protests” OZZL, a doctors’ labor union, said the protest was still on, adding that the NIL could only “recommend” that doctors suspend the action. In the end, he said, it was the doctors’ unions which have the power to call off the strike.

The NIL is due to hold an emergency meeting on January 13 to discuss the matter.

The chaos has prompted politicians from the country’s largest opposition party, Law and Justice, to announce that they would initiate a vote of noconfidence in parliament against Health Minister Bartosz Ar∏ukowicz, who took up his post in November.

The parliamentary caucuses of political groupings Solidarity

Poland and Palikot’s Movement have said they will support the no-confidence motion in parliament. Nevertheless, as WBJ went to press, it seemed unlikely to pass since the coalition government, which has a majority in parliament, was expected to defend Mr Ar∏ukowicz.

Remi Adekoya

Iran

Europe moves towards ban on Iranian oil Former Moscow between prosecutor arrested AsIrantensions and the West

Aleksandr I., a former deputy prosecutor for the Moscow region, was arrested in the Polish mountain resort of Zakopane on New Year’s Day. He is facing charges of corruption and fraud, allegedly committed on Russian territory.

Under Polish law, only the first name and the first letter of the surname of a suspected criminal may be written out in full in an article appearing in the press.

Aleksandr I.’s arrest was carried out by police officers working in cooperation with Poland’s counterintelligence bureau (ABW), after the supect’s name had been placed on an international Interpol list of suspected criminals. It is alleged that Aleksandr I. helped protect illegal casinos operating in Moscow while they were being investigated.

“Officers of the criminal division of the Zakopane police, cooperating in this matter with the ABW, had already suspected that he

[Aleksandr I.] was staying in Zakopane,” Dariusz Nowak, a spokesman for the police, told the Polish Press Agency (PAP) last week.

An arrest warrant for Aleksandr I. was issued on July 13, 2011 by a district court in Moscow, after he had gone missing a month earlier. It was originally believed that he may have been hiding in Ukraine or Belarus.

Following his detention it emerged that he had been carrying a Lithuanian passport, although Polish prosecutors believe the document may have been forged. According to the head of the Foreign Affairs Committee of the Lithuanian parliament, Emanuelis Zingeris, when questions were directed to the appropriate institutions in Poland it was revealed that the arrested man had no other Lithuanian documents.

Following a hearing at the district court in Nowy Sàcz on January 4, a judge ruled that the suspect would remain in custody until February 9, during which time Russian authorities can make a formal extradition request.

David Ingham

increase, Poland keeps a low profile European diplomats agreed in principle last week to impose an EU-wide embargo on oil imports from Iran. This marks a new turn in European policy toward Iran, and would add to recent heightened US sanctions that have elicited combative responses from Tehran.

At issue is Iran’s controversial nuclear program, which Teheran claims is for civilian purposes. A November 2011 United Nations report expressing concern over the possible military dimension of Iran’s nuclear program is giving a new urgency to the matter.

Meanwhile, Poland has kept silent on the issue. When contacted by WBJ, the Ministry of Foreign Affairs issued a statement saying that although Poland “would prefer that the further sharpening of sanctions against [Iran], for example by an eventual embargo on the import of Iranian oil, were not necessary … Poland supports the actions of the international community in reaction to Iran’s policies regarding its nuclear program. But the key to preventing the realization of such a scenario lies in Teheran and not in Warsaw.”

SHUTTERSTOCK

Aleksandr I. was detained by Polish police on charges of fraud and corruption

Is the sun going down on Iran’s oil exports to Europe?

A final decision is expected at a meeting of EU foreign ministers on January 30.

According to Witold Waszczykowski, an expert at the Sobieski Institute think tank, who is also an MP from the main opposition Law and Justice party, a former undersecretary of state for Foreign Affairs and a former ambassador to Iran, the current Polish government doesn’t consider the Middle East as central to Polish interests.

“I don’t expect them to be very active, they will want to stay away from this issue,” he said.

While the EU as a whole accounts for 18 percent of Iran’s oil exports, according to the US Energy Information Administration, the overwhelming majority of Polish oil imports come from Russia.

Greece, Italy and Spain, which rely to a greater extent on Iranian oil imports, had been concerned about the possible effects of an embargo on their economies. They have reportedly dropped their objections.

When the embargo would take effect, as well as other possible sanctions against Iran’s Central Bank, are still being discussed.

Iran’s finance minister said last Tursday that the possible EU embargo on oil amounted to “economic war” against Iran.

Since the turn of the year Iran has test-fired mediumrange missiles, warned an American aircraft carrier not to return to the Persian Gulf, and threatened to shut the Strait of Hormuz, through which 20 percent of the world’s oil is shipped.

Meanwhile the Iranian currency, the rial, has lost 40 percent of its value against the dollar since the beginning of December 2011.

Alice Trudelle

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NEWS

www.wbj.pl

JANUARY 9-15, 2012

Poland and the EU

Deputy interior PM surprises with ‘euroskeptic’ comment minister dismissed Donald Tusk says he’s Deputy Interior Minister Adam Rapacki was dismissed last week, following rumors that he was unable to get along with his superior, Interior Minister Jacek Cichocki. Mr Rapacki was due to be in charge of Poland’s security arrangements for the Euro 2012 soccer championships – to be hosted jointly

by Poland and Ukraine – now just six months away.

The dismissal followed an announcement by Mr Rapacki himself that he was resigning.

However, on Wednesday, Interior Minister Jacek Cichocki confirmed that Mr Rapacki had

been removed from his position.

The news came as a surprise due to the importance of security at the upcoming tournament this summer. Interior Minister Cichocki said new blood was needed.

“The ministry needs a new perspective to carry out new tasks. This is why I decided to invite new, competent ministers. This is also the reason why, after four years, I decided to let Mr Rapacki take a rest,” Mr Cichocki said at a press conference.

Izabela Depczyk

Mr Tusk said that he is not a euro enthusiast with “unhealthy fascinations” significantly in Poland.

Even so, Sergiusz Trzeciak, a political scientist at Collegium Civitas, said that he does not think Mr Tusk’s words signal a change in government policy towards Europe.

“This is more an attempt to speak to the soft electorate, which is increasingly distrustful of Europe – to let them know that he is not a fanatical euro-enthusiast,” Mr Trzeciak said.

“Notice that he does not call himself an outright euroskeptic, rather he says he is a rational, ‘common-sense euroskeptic,’ in order to separate himself from the – pardon my expression – ‘crazy euroskeptics,’” he added.

The prime minister added that it is in Poland’s interest for the EU to hold together.

“I do not think that 2012, as some may want it to be, will be a year of disintegration of the

EU. On the contrary, increasingly there are signals [from leaders] of understanding the need for reintegration,” Mr Tusk said.

Moreover, officially at least, Poland is still aiming to adopt the euro at some point.

Poland’s PM also said that the country’s just-finished term at the helm of the Council of the EU could be seen as a source of national pride.

Izabela Depczyk

COURTESY OF THE EUROPEAN PARLIAMENT

In a comment that caught many by surprise, Prime Minister Donald Tusk said at a recent press conference that he is now a “common-sense euroskeptic.”

Mr Tusk’s pronouncement raised eyebrows since he has backed the European project strongly in recent months and is head of a party known for its pro-European policies.

But his words reflect growing doubt among the country’s electorate about the future of the euro and the European Union.

“I’m not a euro-enthusiast of the sort that has eyes only on the yellow stars on the blue background, forgetting the white-and-red flag,” Mr Tusk said in reference to the flags of the EU and Poland.

“I’m a common-sense euroskeptic, without any unhealthy fascinations.”

With debt troubles in the euro zone threatening to break the currency bloc apart, public support for the euro has fallen

COURTESY OF FLICKR/PLATFORMARP

a euroskeptic. Does this signal a change in policy, or is he just playing to the electorate?

Mr Rapacki had earlier announced his resignation

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INDUSTRY NEWS

JANUARY 9-15, 2012

www.wbj.pl

Metals tax

Government lowers controversial metals tax rate Copper giant KGHM argues that the new rate could still limit its capacity for future investments Poland’s Finance Ministry has modified a planned copper and silver tax that was proposed by Prime Minister Donald Tusk in November of last year. When introduced the new tax will mainly affect KGHM, Poland’s sole producer of copper and silver.

Under pressure from other ministries, as well as KGHM’s management and labor unions, the Finance Ministry announced last week that the tax would be charged at a minimum of z∏.130 per metric ton of copper extracted when the price of copper per ton is below z∏.13,000, and a maximum of z∏.20,000 per ton if the price exceeds z∏.52,000. The original proposal had set the

maximum price at z∏.32,000 per ton.

Treasury Minister Miko∏aj Budzanowski said the first proposal had been “out of sync with global standards,” while Deputy PM and Economy Minister Waldemar Pawlak said it endangered KGHM’s future ability to make investments.

However, in an interview with TVN last week, KGHM CEO Herbert Wirth said the new proposal is still unsustainable, adding that the firm might have to limit investment and takeover plans if it is introduced.

According to Robert Maj, an analyst at KBC Securities, under the new version of the tax KGHM would likely pay around z∏.1.7 billion in 2012, z∏.330 million less than it would have paid under the first draft.

After 2013, KGHM would pay close to z∏.2 billion a year,

which is “still very high, and would eat up a large portion of the company’s cash flow, likely making new investments and modernization difficult in the future,” Mr Maj added.

The Finance Ministry has also raised its copper price forecasts. It predicts an average price of z∏.25,500 per metric ton in 2012, meaning the amount it expects to gain from the tax in 2012 was left unchanged from its original forecast, at z∏.1.8 billion. Copper prices have risen to exceptionally high levels in recent months, allowing KGHM to bring in record profits. In December 2011, KGHM’s management estimated that the company’s net profit for full-year 2011 would reach z∏.11.19 billion.

With signs of economic slowdown coming thick and fast from Europe, the Polish government is trying to maxi-

mize the inflow of revenues to the public purse. But the Treasury, which owns a controlling 32 percent stake in KGHM, argues that the proposed tax, even in its revised form, is set at an unsustainable level.

The announcement and ensuing negotiations around the planned tax have sent

KGHM’s stock price spiraling downwards – it has fallen by over 30 percent since midNovember 2011.

The government plans to implement the new tax on March 1 of this year. The draft is expected to be discussed in parliament later this month.

Alice Trudelle

Mining the depths KGHM stock price at closing, October 1, 2011-January 3, 2012

Oct.

Nov.

Dec.

Jan. Source: Stooq.pl

Warm weather benefits construction industry this ability to continue to work will give the sector a major boost at the start of 2012. Construction is expected to slow down in the second half of this year following the end of the 2012 European soccer championships and the completion of many road-building projects related to the event.

In addition to the continuation of work, a lack of snow and ice on the roads has also helped GDDKiA save some z∏.128 million, due to the fact that roads have not needed to be salted as often as in previous years.

“The prices for salt are cheaper in the summer, so we have already purchased our winter quantity. At the moment, all of our salt warehouses are full and … next winter we won’t have to

Favorable weather conditions this winter have helped Polish road builders make up for lost time spend as much money,” said Mr Mrugasiewicz.

Veronika Joy, David Ingham

Investments in China

Polish chemical firms plan to build production plant in China Zak∏ady Azotowe Pu∏awy and Azoty Tarnów have signed a preliminary agreement concerning the proposed joint venture Polish chemical companies Zak∏ady Azotowe Pu∏awy and Azoty Tarnów are due to meet later this month to discuss plans to build a caprolactam production plant in China. The two firms have already signed a preliminary agreement concerning the

possibility of establishing a joint venture.

Caprolactam is a raw material used in the production of a wide variety of products including carpets, engineering plastics and cars. Locating in China would give the companies access to commodities and energy as well as a ready local market.

Grzegorz Kulik, a spokesperson for ZA Pu∏awy, told WBJ that “every car is made up of at least 25 kilograms of caprolactam. ...

There is a shortage of 500,000

[metric] tons per year of caprolactam in China and 300,000 tons in Taiwan.”

If the Polish chemical firms do end up launching the investment in China, it will be at least another three to four years before the facility is built.

ZA Pu∏awy is no stranger to the Asian market, since almost 90 percent of its caprolactam output already goes to Asian countries, including Thailand, India and Indonesia.

Mr Kulik said that the planned investment is part of

Poland’s largest insurer, PZU, has been fined z∏.56.6 million by the Office of Competition and Consumer Protection (UOKiK) for entering into an agreement with Maximus Broker that, according to the regulator, restricted competition. The latter firm, meanwhile, has been fined z∏.61,800. The agreement in question regards group-accident insurance policies for school children and employees in the education sector within the Kujawsko-Pomorskie voivodship.

The Export Credit Insurance Corporation (KUKE), which provides insurance services to Polish entrepreneurs, predicts that in 2012 Poland’s export market will grow by some 11.5%, to approximately €153.7 billion. KUKE estimates that last year exports totaled €137.8 billion, 10.2% up on 2010, reported Parkiet.

According to the Ministry of Finance, in the first three quarters of 2011 exports to CIS countries grew by 22.4% year-onyear.

Gambling sector suffers

SHUTTERSTOCK

Despite the disappointment of many at the lack of snow in Poland this winter, unseasonably high temperatures have spelled good news for the construction sector. This is particularly true when it comes to road building, as a lack of snow and cold conditions enabled construction to continue unhindered at the end of 2011.

This year Poland’s General Directorate for National Roads and Motorways (GDDKiA) estimates that 530 km of motorway and 450 km of expressway will be

completed, compared to just 240 km of motorway and 76 km of expressway in 2011.

And with many of the current road projects having a May deadline, the favorable conditions have enabled construction workers to catch up on delays caused by flooding and bad weather in 2010. “[In 2010], winter started around October and almost every building project had to stop. Right now, all construction has continued,” said Artur Mrugasiewicz, a spokesperson for GDDKiA. “Not only are we able to work through our projects this [winter], but we are able to make up some of the time lost due to the floods two years ago,” he added.

And according to Bart∏omiej Sosna, senior construction analyst at PMR,

PZU fined z∏.56.6 million

Exports grow 11.5%

Construction sector

Unseasonably high temperatures and a lack of snow have helped give Poland’s construction sector a boost going in to the new year

5

the firm’s strategy to become more directly active in the Asian market.

In 2012, there will be a 3 percent global increase in demand for caprolactam, while demand from China alone will grow by up to 8 percent, according to ZA Pu∏awy.

ICIS, a market intelligence group that covers the chemical, energy and fertilizer industries, forecasts a tight supply of the chemical due to expected high demand.

“Caprolactam imports to China are likely to remain

strong in 2012, despite increased domestic capacity expansions, according to producers and buyers,” said Junie Lin, an editor at ICIS who covers the Asian caprolactam market.

“China is expected to double its [domestic] caprolactam capacity to 1.21 million tons a year,” she added.

ZA Pu∏awy board member Marek Kap∏ucha was among the Polish businesspeople who accompanied President Bronis∏aw Komorowski on his official state visit to China last Veronika Joy month.

In 2011, Poles spent z∏.14.3 billion on gambling. That’s z∏.6 billion less than in 2009, the year when stricter laws were introduced as a result of the infamous gambling scandal which rocked the Polish government, Puls Biznesu reported.

Moreover, the majority of firms in the gambling sector did worse in 2011 than in the previous year.

Shale gas to heat homes By the end of 2012, around 3,500 residents of small towns and villages within the Pomorskie voivodship will be able to use shale gas to heat their homes, reported Dziennik Gazeta Prawna.

The change will save them around z∏.100 to z∏.200 per year on their normal fuel costs.

It is estimated that shale gas will be about 20% cheaper for consumers than conventional gas. ●

BUSINESS

www.wbj.pl

Fin Min wants NBP help with budget gap Polish Finance Minister Jacek Rostowski has proposed that the National Bank of Poland buy back government bonds on the secondary market as a “short-term measure” to help bridge the budget gap. In response, the NBP published a note on its website saying its responsibility is to promote the stability of the domestic financial system, and that the purchase of bonds on the secondary market could take place only in exceptional situations of deep crisis.

WSE lists bonds on Catalyst market The Warsaw Stock Exchange issued z∏.170 million in bearer bonds through its Catalyst bond-trading system last week. The bonds, which have been newly listed, are the first of two series of WSE debt instruments to be listed on Catalyst. ●

JANUARY 9-15, 2012

Stock market

Hot Polish stocks in Q1 2012 A new feature from WBJ asks the experts which firms they think will be top performers on the WSE each quarter With Warsaw solidifying its place as the financial hub of the region and interest in stocks on the Warsaw Stock Exchange growing, WBJ introduces a new feature in which we ask several analysts to reveal which stocks they think will be the best performers on the WSE each quarter.

Participating in our analysis for the first quarter of the year are Marcin Materna from Millennium Dom Maklerski and Zbigniew Obara from Alior Bank.

A look at their selections (see boxes) shows there are opportunities in a variety of sectors. Largely absent on their lists are financial stocks, except for Bank BPH, which Mr Materna explained is the cheapest banking stock on the WSE and is showing improving results, though it has underperformed over the past several months.

Two real estate firms, Budimex and Echo Investments, were chosen by Mr Obara and Mr Materna respectively. Budimex, which represents an undeservedly depressed construction sector in Poland, has a high dividend yield and strong bidding power in prospective tenders, said Mr Obara. Developer Echo Investment, which controls 300,000 sqm of commercial space in Poland, is a good deal, since it is quoted at two thirds of its net asset value, according to Mr Materna.

Mr Obara also named sports betting firm Fortuna, retailer Emperia, insurer PZU and biotech firm Bioton as stocks he expects to perform well this quarter.

Fortuna should benefit from increased wagering on sports due to the Euro 2012 soccer championships and the Olympics in London, Mr Obara said. Emperia, which recently sold off its distribution group Tradis for z∏.926 million, is cash rich, offers an attractive dividend and has strong prospects for M&A possibilities in the future, he added.

PZU, Poland’s largest insur-

Contact: Miros∏aw Stefanik ms@pnplaw.pl

From January 1, 2012, commune heads, mayors and city presidents have ceased to be registration authorities for natural persons who are entrepreneurs. As a result, municipalities will no longer keep their own registers of entrepreneurs.

These registers have now been replaced by a single database called the Business Activity Central Register and Information Record (Centralna Ewidencja i Informacja o Dzia∏alnoÊci Gospodarczej – CEIDG), which contains data on natural persons who conduct business activities.

Registration of data with CEIDG by an entrepreneur is free of charge. The data gathered by CEIDG is open to the public, which means that anyone can access information about their business partner or associates through the CEIDG’s website.

Increased legal protection for animals On January 1, 2012, changes to the act on animal protection came into force. The aim of the amendments is to increase the legal protection of animals. Among other things the act provides more details concerning bans on killing animals, specifies the exact definition of animal cruelty and also introduces new terms regarding taking animals away from persons who abuse them, as well as provisions defining the places of sale for pets. In addition, the

declining prices of cocoa and sugar. He added that Enea has the lowest EV/EBITDA in the energy sector, and the resumption of its privatization may trigger an upward trend in its stock price.

Disclaimer: The analysts’ picks presented above do not constitute investment advice or recommendations to buy or sell any securities on the Warsaw Stock Exchange, and are presented for informational purposes only.

Ella Pa∏ka

The experts' picks Expected top performers in Q1 2012 Marcin Materna, Millennium Dom Maklerski Stock

Closing price 04.01.2012

52-week high

52-week low

Bank BPH

z∏.32.20

z∏.77.55

z∏.29.32

Echo Investment

z∏.3.40

z∏.5.60

z∏.3.00

Enea

z∏.18.50

z∏.23.98

z∏.14.21

Mieszko

z∏.3.06

z∏.4.62

z∏.2.45

Qumak-Sekom

z∏.8.49

z∏.16.20

z∏.6.82

Zbigniew Obara, Alior Bank Stock

Closing price 04.01.2012

52-week high

Bioton

z∏.0.07

z∏.0.19

52-week low z∏.0.06

Budimex

z∏.77.00

z∏.109.70

z∏.62.00

Emperia

z∏.116.50

z∏.124.80

z∏.84.00

Fortuna

z∏.16.24

z∏.23.86

z∏.12.01

PZU

z∏.312.50

z∏.398.60

z∏.283.10 Source: Warsaw Stock Exchange

Household appliances

Legal News

Entrepreneur registration changes

For his part Mr Materna listed IT firm Qumak-Sekom, confectioner Mieszko and electricity producer Enea as the other stocks he expects to be top performers in Q1.

Qumak-Sekom’s stock, he said, has underperformed due to poor Q3 results, but has an inexpensive valuation and a strong backlog for 2012. Mr Materna pointed out that Mieszko is the cheapest confectionery producer on the WSE, and added that its margins are expected to improve due to

er, has a large dividend on the horizon and operates in a much better regulatory environment than other sectors such as banking and utilities, according to Mr Obara. He added that Bioton, a global producer of insulin, despite its struggles with overinvestment and a heavy debt burden, should benefit from regulatory changes and attractive currency rates for its exports. The company is also in the process of an “interesting” merger with a producer of veterinary medicines, he said.

new provisions introduce a prohibition on letting dogs loose in cases where the dog in question would become impossible to control or lack identification tags that would enable the owner or guardian to be traced.

Act on transport of dangerous goods The act on transport of dangerous goods came into force on January 1, 2012. The act is aimed at adjusting Polish legislation with regards to the transportation of dangerous goods, so that it is in line with new regulations included in a directive introduced by the European Parliament and Council on September 24, 2008. The act defines the conditions under which dangerous goods can be shipped on national and international roads, railroads, and inland shipping routes.

Information on auctions published on the National Bailiffs Council’s website On January 6, 2012, an amendment to the code of civil procedure came into force. In accordance with the change, announcements concerning bailiffs’ auctions will have to be made on the website of the National Bailiffs Council. The previous legal provisions stipulated that the auctions were to be announced only in the court building, in the premises of the municipal authority and in a newspaper. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Zelmer expects slower market growth in 2012 The crisis in Western Europe is expected to weigh on its home appliances markets this year Zelmer, a Polish household goods manufacturer, expects the markets it operates in to grow at a slower rate this year than in 2011, due to the economic crisis and turbulence in Western markets.

For full-year 2011, Zelmer forecasts annualized market growth of around 7 percent for Poland, and in the case of Ukraine and Russia – about 20 percent.

“With 2012, we approach the situation of demand across the region with caution,” company president Janusz P∏ocica told PAP. “The CEE region in which we operate has not reacted to the crisis like Western Europe has, but in general the prevailing pessimism and the situation in the West will also reflect on the economies in this part of Europe. Therefore, we expect a slight slowdown in growth in demand [this year],” Mr P∏ocica said.

For Russia and Ukraine, he said, Zelmer expects growth of

SHUTTERSTOCK

6

Zelmer hopes its Q4 2011 results will beat the previous year’s record closer to 10 percent than 20 percent, while in the case of Poland, the Czech Republic, Slovakia and Romania growth of just a “few percent” is forecast.

The company relies heavily on markets to Poland’s east, with sales to those countries accounting for 74 percent of its total exports last year. Russia and Ukraine are expected to account for the largest share of the company’s export revenues in 2012, said Agnieszka Grabowska, the company’s investor relations manager.

Vacuum cleaners and

kitchen equipment are Zelmer’s most popular export items.

In the fourth quarter of 2011, meanwhile, the company says it may have achieved record sales results.

“We have not yet fully summarized sales data for December, but if the last month of the year closes well, as we hope, Q4 2011 results may be higher than those achieved in the same period a year earlier.

And remember, the fourth quarter of 2010 was a record for Zelmer, in terms of sales,” said Ms Grabowska.

Veronica Joy

FINANCE & ECONOMICS

JANUARY 9-15, 2012

Public debt

Currency interventions help Poland avoid austerity measures Three interventions at the close of 2011 helped keep public debt below a key legal threshold Eleventh-hour currency market interventions by two state institutions helped Poland avoid breaching the 55 percent debt-to-GDP threshold, which would have triggered legally mandated budget cuts.

Deputy Finance Minister Dominik Radziwi∏∏ said last week that the debt-to-GDP ratio amounted to 54 percent, keeping it just below the 55 percent limit.

The exchange rate used in Poland’s debt calculation is decided on the final trading day of the year, which in

2011 fell on Friday, December 30. The government was keen to ensure that the z∏oty was not too weak on that day since around a third of Poland’s debt is denominated in foreign currencies.

A total of three interventions were carried out by Polish state institutions, with Bank Gospodarstwa Krajowego (BGK) and then the central bank intervening on December 29 to push the z∏oty to around z∏.4.40 against the euro, from z∏.4.46 earlier in the day.

The following day saw BGK intervene once again in the morning, allowing the central bank to fix the exchange rate used to calculate debt at 4.4168. In the end, Poland’s debt crept under the limit.

The Finance Ministry expects public debt to fall to 52.4 percent this year, and then to 47.4 percent in 2015.

In order to protect against speculators who play the market on expected interventions, and to avoid a tight finish each year, in the future the ministry hopes to use an annual average euro/z∏oty rate to calculate debt instead of the exchange rate on the last day of the year.

Moreover, a number of experts say that the z∏oty is one of the most undervalued currencies in the world (see accompanying box), with Mr Radziwi∏∏ saying he expects the euro to cost z∏.4 by the end of the year.

Gareth Price

Big Mac index: z∏oty undervalued by 43% According to The Economist’s Big Mac index, the z∏oty is undervalued against the dollar by approximately 43 percent. This is the most in 18 months and the second-largest discount in Europe, after the Russian ruble.

McDonald’s Big Mac to compare the values of different currencies.

The index is based on the theory of purchasingpower parity and uses the price of the

In Poland, the cost of the McDonald’s sandwich is z∏.8.80. That price translates to about $2.55, which means the cost of the burger is some 43 percent lower in Poland than in the US. This in turn suggests that the z∏oty is undervalued by about 43 percent against the dollar. ●

Manufacturing sector contracts anemic when compared to 2011 as a whole.

Employment also dropped in the manufacturing sector for the first time since July 2010.

“The input prices index rose sharply, but this was not true of the output prices index. That, together with the falling employment index, points to a benign medium-term inflation pic-

ture and constitutes an argument against central bank interest rate hikes despite a high CPI inflation reading,” Agata Urbaƒska, an economist for Central and Eastern Europe at HSBC, said in a statement.

“On balance the data point to slowing economic activity, both domestic and external,” she added.

Gareth Price

Further contraction Poland’s manufacturing PMI, December 2010 – December 2011

*Indicates improvement on the previous month

58 57 56 55 54 53 52 51 50 49 48

2010

2011

mb er nu a Fe ry br ua ry Ma rch Ap ril Ma y Ju ne Ju ly Au g Se ust pt em be Oc r tob No er ve m De ber ce mb er

* Ja

De ce

Poland’s manufacturing sector is continuing to show signs of weakening, with the purchasing managers’ index (PMI) indicating that activity fell at its fastest rate in over two years in December.

The country’s PMI reading came in at 48.8 last month, and therefore below 50 for the second month running. Scores above 50 indicate expansion while scores below that number suggest contraction. The December reading was the lowest since October 2009.

Total new orders received by manufacturers fell for the second straight month, with the rate of decline the fastest since June 2009. Moreover, business generated by export orders declined for the seventh consecutive month, although at a slower rate than in November.

Although new orders fell, production output still grew – even exceeding November’s level. However, the pace of expansion remained

Source: Markit

www.wbj.pl

7

8

INTERVIEW

www.wbj.pl

JANUARY 9-15, 2012

Russian relations

Know thy neighbor

Ewa Boniecka: You are coauthor and editor of the recently published book, “International images of Russia” which analyzes European and US views of Russia, and the character of Russia itself.

What is your assessment of the recent demonstrations held there in protest against the alleged fraud in the latest parliamentary election?

Stanis∏aw Bieleƒ: Russia is a geographical and civilizational phenomenon which invokes many dramatic feelings due to the events which occurred there in the last century. In my view, in order to understand Russia we have to look at it from the perspective of centuries and not from the perspective of days, weeks or months. What is happening now in Russia is a consequence of the political and economic transformation that is still going on there.

The latest events in Russia – the protests on the streets of Moscow and some other major cities – are the direct consequence of a parliamentary election whose results, according to the majority of assessments, were fabricated, with vote-counting carried out under the political dictate of the Kremlin and the two men whose rule shapes Russian politics – [Prime Minister Vladimr] Putin and [President Dmitry] Medvedev.

The scale of the protests demonstrates the political awakening of Russian society, especially of younger generations, and its determination to fight for democratic rights. It is a sign that Russians are maturing towards becoming a civil society, that they are not willing to accept the arrogance and abuses of those in power.

Yet they are aware of the enormous problems of the country and the difficulties of promoting democratic standards there, so in my view the protesters do not want, or are not prepared, for radical changes to the political system. Instead, they want the authorities to treat them as mature citizens

and to act under the control of the people.

So I think that Western and also Polish media overrate the role of democratic opposition in Russia, because there is not an organized opposition there, and because democratic standards as they are understood in the West do not fit the present conditions in Russia. All kinds of people took part in the demonstrations, not only liberals, but communists, nationalists and anarchists.

This means the protests against Mr Putin’s rule could [potentially] lead to an even worse aggressively nationalistic, anti-Western and anti-liberal political establishment than the one currently in place.

Yet I do not predict that it will lead to any meaningful changes in the functioning of the present political system – not yet.

Russia has been seen throughout history as being very different to Europe and the West.

Is it still perceived as such?

Russia is a transcontinental country, which due to its location in Eastern Europe and on the huge territory of Asia, is a structural phenomena linking in many ways the political patterns and traditions of two continents. Yet Russia is mentally and culturally a European country, and from its beginning was perceived as being part of Europe. Of course there were periods in Russian history when its European character was emphasized and there were others when Russia exposed its Asian connections, helping to shape the image of Russia as a mysterious and exotic country in the minds of outsiders.

But I see the transcontinental character of Russia not as part of its burden but as an asset, because it can play the role of a bridge between European and Asian civilizations, in the framework of understanding that Russia is first of all a European country. On the other hand, due to its transcontinental character, historical experiences and Asian influences, Russia has developed its own political tradition which is very different than the Western one.

So in my opinion it is not possible to implement all Western political rules in Russia, even though it is a capitalist country and – formally at least – democratic. This is

because Russia sticks to its own version of democracy, which is defined and controlled by the authorities and linked with the special position of the top man in the Kremlin.

Do Russia and the West still see themselves as being ideological enemies?

No, the time when Russia was perceived as the ideological enemy of the West and acted as its main adversary ended with the collapse of the Soviet Union. Today’s Russia does not conduct ideological crusades against the West, even though there are still some groups and parties there that have anti-Western attitudes.

And the West, while often criticizing violations of democratic standards in Russia, looks at that huge country as an important partner, cooperating over and dealing with global problems. Russia remains a difficult partner, exposing longestablished prejudges, imperial inclinations, and often conflicting interests with other countries, but after its economic and political transformation it is a part of the Western world.

So I think that it is more important than ever for scholars to come forward with objective analysis of Russian affairs in order to help policymakers and the general public to understand Russia and get rid of many stereotypes, mythologies and false opinions which make it difficult to conduct relations with Russia.

Russia and the European Union are linked by a strategic partnership and many Europeans are conscious of the fact that Russian history has always been a part of European history. How would you describe the images of Russia held by members of the EU? There are no universal perceptions and images of Russia among EU members, as there is not in practice a common EU policy towards the country. Big, medium-sized and small members all have their own, often very different, positions in relations with Russia.

Also, Russia conducts a different policy towards old, Western EU members than it does towards members in Central and Eastern Europe.

Due to close economic cooperation which is profitable for both sides, Germany practices Realpolitik towards Russia, while France and Italy also have a generally positive attitude towards Russia. The most influential base of scholars studying Russian affairs is located in Germany and France, and they have shaped

SHUTTERSTOCK

Stanis∏aw Bieleƒ, professor of political science and a specialist on Russian affairs at the University of Warsaw, talks to WBJ about recent political developments in Russia and the lack of Polish expertise in Russian matters

Professor Bieleƒ doesn’t expect a major power shift in Moscow just yet Western European opinions about that country. Their reports expose many aspects related to Russian problems, with some being very critical, some saying that Russia is an essential element of security and peace on our continent.

So a strong Russia, rather than an unstable and weak Russia, is in the interest of Europe.

We present in “International images of Russia” a very interesting report drawn-up in 2007 by the European Council on Foreign Relations, which divided the members of the EU into five groups depending on their attitudes towards Russia. France, Germany, Italy and Spain were qualified as “Strategic Partners,” while Austria, Belgium, Bulgaria, Finland, Hungary, Luxembourg, Malta, Portugal, Slovakia and Slovenia were grouped as “Friendly pragmatists.” Meanwhile, the Czech Republic, Denmark, Estonia, Ireland, Latvia, the Netherlands, Romania, Sweden and the United Kingdom were called “Frosty Pragmatists.”

Cyprus and Greece were termed “Trojan Horses,” while Poland and Lithuania were deemed “‘New Cold Warriors.”

Since the report was published, do you think that Poland’s perception of Russia has changed, with its foreign policy towards that country becoming more pragmatic?

Polish perception of Russia is shaped to a great extent by our tragic historical experiences with the country. However understandable this stance is, we now have to build

our relations with Russia, as other EU members are doing, without historical reminiscences and overgrown emotions. Yet among many analysts, politicians and certain groups of our society there are deep rooted anti-Russian phobias. And Poland, due to its geographical location, has to maintain many bilateral contacts with its Eastern neighbor, but also look at Russia – as the West does – in a global context, in which it is an important player.

And our scholarly basis for analyzing Russia is very tiny in comparison with some other European countries. We did not manage to develop research on Russia immediately after the 1989 political transformation and later changes in that country, so we lost a lot of time needed to prepare new generations of scholars dealing with Russian affairs.

Only in recent years have I seen a growing interest in Russian studies: there is now the state-financed Center for Eastern Studies and a growth in the number of new scholarly publications about Russia.

But what worries me is that scholars’ reports are usually drawn-up for the current political order, while there is a lack of independent and alternative findings from other researchers. Yet ambitious universities’ Russian research centers are short of money and are therefore unable to develop properly. I am also concerned that so many of our politicians show such little interest in scholarly findings about Russia.

Yet many Poles like to claim that Poland is a leading expert on Russia, that we understand it better that the West. You seek to challenge that assertion in your book.

Yes I do, because this popular claim about our expertise concerning Russia is not merited, either in our foreign policy, or in the behavior of many Poles, who constantly repeat old stereotypes about Russia as being a backwards, wild country, which wants to destroy Poland and is a threat to our independence. We want Russia to be weak because it makes us feel stronger. This attitude contradicts the stance of our European and American friends, who want Russia to be a strong partner in the international field.

Most importantly, our one-sided, negative image of Russia goes against our own interests, because as long as we ignore the fact that Russia is building a strong international position based on cooperation with the West, we will give ourselves only a marginal role in overall European policy towards the country. And in that situation we would also be in a weak position in our bilateral relations with Russia.

I hope that the younger generation of scholars, many of whom have collaborated in preparing the book, look at Russia objectively, without old complexes and prejudices, because this is the only way to provide Poles with the kind of knowledge that would allow for a better understanding of the country we have to live with as our neighbor. ●

EUROPE

JANUARY 9-15, 2012

www.wbj.pl

9

European Parliament

During his farewell speech, the EP president summed up the achievements of the European Parliament under his tenure Polish politician Jerzy Buzek officially steps down as the president of the European Parliament on January 17, after two-and-a-half years at the helm.

In his farewell speech in December, Mr Buzek outlined what he felt were his own and the EP’s successes during the period of his tenure, saying: “We achieved a lot, but this is a fight we need to continue.”

Lisbon Treaty and EC accountability The Lisbon Treaty, which came into force in December 2009, led to an increase in power for both the European Parliament and the EU Council, and as a result it is viewed

by Mr Buzek as particularly significant. It “changed the way our European Union

functions,” he said.

“For me, the most important was Parliament’s place in EU decision making,” Mr Buzek added.

He said that although there was initially a risk that the Lisbon Treaty might not be ratified by all EU members, in the end he was successful in convincing the doubters. Eventually, “the parliament we always wanted to be” was created, he said.

Mr Buzek also talked about his efforts at pushing for greater EC accountability.

“The candidate for the president of the EC came for the first time to our political groups to discuss his five-year manifesto. We established a monthly questions hour with the president of the EC and commissioners. We used our powers to shape the new European External Action Service so that it was more accountable and representative for the community as a whole,” he said.

Fiscal measures Mr Buzek also spoke about

the global financial crisis, which hit Europe hard and resulted in the current sovereign debt crisis in the EU. “When you elected me as president of the European Parliament, we all thought that the international banking crisis was coming to an end.

Instead it came to our shores,” he said.

Referring specifically to the so-called “six-pack” of fiscal measures that was thrashed out by EU leaders to help prevent another EU economic crisis in the future, Mr Buzek said, “It is a new economic anti-crisis shield making closer economic cooperation a reality. Thanks to our firmness, attempts to weaken this shield were not successful.”

Stability and democracy Mr Buzek also expressed the view that the EP has always yearned for stability, but he stressed that stability is not possible without democracy and without active engagement in the defense of human rights. “We European parliamentarians were always strong

defenders and supporters of all people fighting for freedom, democracy and human dignity,” he said.

“When I spoke to protesters in Tahrir Square in Cairo, and freedom fighters in Martyrs’ Square in Tripoli, they told me, ‘Thank you Europe – thank you for believing, and being with us.’”

Positive, but not spectacular But what do the experts think of Mr Buzek’s time at the helm of the European Parliament?

Leszek Jesieƒ, the EU program coordinator at the Polish Institute of International Affairs, told WBJ that Mr Buzek “was a good leader, he was visible, though only time will give a real evaluation. Of all the recent European Parliament presidents, I think he is one of the best, though there is always space to do more, to be even better.”

However, Mr Jesieƒ said that out of all the achievements listed by Mr Buzek, the one that the European Parlia-

COURTESY OF THE EUROPEAN PARLIAMENT

Jerzy Buzek: ‘this is a fight we need to continue’

Mr Buzek will officially step down on January 17 ment had handled least successfully during his term in office was the economic crisis, noting that the crisis is still ongoing and that the euro is still at risk of falling apart.

Rafa∏ Dymek, the director of the Robert Schuman Foundation, a non-governmental organization which works to engage Polish citizens in the process of uniting Europe, agreed with Mr Jesieƒ’s over-

all assessment.

“This was a good presidency. The issues on which he took a stance made him a very visible EP leader. Aside from the achievements mentioned in his speech, he also strengthened the position of Poland in Europe. So overall, although he did not achieve anything spectacular, he left a positive impression,” Mr Dymek said.

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OPINION & ANALYSIS

JANUARY 9-15, 2012

www.wbj.pl

11

Emerging markets’ decade of disruption Javier Santiso

O

ver the past decade, emerging markets have become the global economy’s main growth engine. According to HSBC, 19 of today’s emerging-market countries will be among the world’s 30 largest economies in 2050, and they will be more important than the current OECD countries.

Emerging markets have already captured 40 percent of world GDP and 37 percent of global foreign direct investment. And, while OECD countries continue to stagnate in 2011, emerging markets are growing strongly. China last year jumped ahead of Japan as the world’s secondlargest economy, while India attracted a record $80 billion in FDI, double that of 2010. Brazil’s Petrobras, already one of the world’s largest petroleum companies, had a recordsetting $67 billion IPO last year.

These economies’ growing wealth is attracting a rising number of OECD multinationals. In Asia, the middle class now represents 60 percent of the total population (1.9 billion people).

China became the world’s top car market in 2010. The world’s richest person is from Mexico. And rapid economic growth is occurring in an environment of small deficits, low debt, and controlled inflation.

Disruptive innovation

tated. India’s Tata sells cars for 75 percent less than its European competitors. China’s Mindray has developed medical equipment at 10 percent of the cost of its Western competitors. Kenya’s Safaricom is transforming the market with its M-Pesa mobile-banking service, just as Indian outsourcing multinationals such as TCS and Wipro have done.

But there is another, quieter revolution bringing companies from OECD countries to emerging markets: disruptive innovation. On one hand, emerging-market multinationals are excelling even in high-value-added and technology-intensive sectors; on the other hand, firms from OECD countries are increasingly re-importing innovation from emerging-market companies.

According to the United Nations, there are roughly 21,500 multinationals based in emerging markets. Some, such as the Mexican cement company Cemex, the Indian IT outsourcing firm Infosys, and the Chinese battery manufacturer BYD, are already leaders in their sectors. The main suppliers to the world’s telecoms companies are found in China, where Huawei is now head to head with Sweden’s Ericsson. In 2008, Huwaei registered more patents than any other company in the world, and finished second to Japan’s Panasonic in 2009.

In the telecommunications sector, there are now a half-dozen emergingmarket multinationals in the global top 10. Brazil’s Embraer revolutionized airplane manufacturing with a business model that others have imi-

Digital disruption Even the digital world is being affected by emerging-market growth. Facebook could have been Latin American: one of its founders is Brazilian.

The Chinese internet group Tencent Holdings is the world’s third largest in terms of market capitalization ($45 billion in 2011). Its top financial shareholder is another emergingmarket multinational, South Africa’s Naspers. The two companies invest in start-ups together – not in California, like Google, but in emerging markets. In 2010, they invested $700 million in Russian Internet giant Mail.ru. Russian Digital Sky Technologies (which owns Mail.ru) is present in key US internet start-ups such as Facebook, Zynga, and Groupon.

These emerging-market multinationals are not only disruptively

innovative; they are also massively frugal, making them lethal competitors. And they are rapidly climbing the value chain: in 2010, according to Booz & Company, South Korea’s Samsung became one of the world’s top 10 companies in terms of R&D investment.

Israel has launched more than 4,000 start-ups – ranking second in the world in the number of companies quoted on the Nasdaq.

As a result, reverse innovation by OECD multinationals is now common practice. Indeed, the OECD Fortune 500 multinationals now have nearly 100 R&D centers based in emerging markets, mainly in China and India. GE’s R&D center in India is the company’s biggest worldwide.

Cisco spent a billion dollars on another one in India. Microsoft’s largest outside of the US is in Beijing. IBM now employs more people in India than in the US, and Germany’s Siemens has based 12 percent of its 30,000 R&D engineers in emerging Asia.

Rebalancing act To grasp the speed of this global rebalancing, consider that in 1990, more than 95 percent of R&D was carried out in developed countries; a

decade later, the developed countries’ share had dropped to 76 percent. Today, emerging markets account for 40 percent of the world’s researchers. As a report from UNESCO recently highlighted, China, which now spends more than $100 billion annually (2.5 percent of GDP) on R&D, is on the verge of surpassing the US and Europe in terms of the number of researchers.

In 2010, 40 percent of all Chinese university students were studying for science or engineering degrees, more than double the share in the US. Emerging-market countries will not only claim the lion’s share of global growth in the coming decade; they will also increasingly be the source of disruptive and frugal innovation. By 2020, the geography of innovation, in addition to that of the wealth of nations, will have undergone a massive rebalancing process. ● Javier Santiso is Professor of Economics at ESADE Business School and Director of the ESADE Center for Global Economy and Geopolitics (ESADEgeo).

Copyright: Project Syndicate, 2011. project-syndicate.org

The decline and fall of the euro?

Daniel Gros

G

reat empires rarely succumb to outside attacks. But they often crumble under the weight of internal dissent. This vulnerability seems to apply to the euro zone as well.

Key macroeconomic indicators do not suggest any problem for the euro zone as a whole. On the contrary, it has a balanced current account, which means that it has enough resources to solve its own publicfinance problems. In this respect, the euro zone compares favorably with other large currency areas, such as the United States or, closer to home, the United Kingdom, which run external deficits and thus depend on continuing inflows of capital.

In terms of fiscal policy, too, the euro-zone average is comparatively strong. It has a much lower fiscal deficit than the US (4 percent of GDP for the euro zone, compared to almost 10 percent for the US).

Debasement of the currency is another sign of weakness that often precedes decline and breakup. But, again, this is not the case for the euro

zone, where the inflation rate remains low – and below that of the US and the UK. Moreover, there is no significant danger of an increase, as wage demands remain depressed and the European Central Bank will face little pressure to finance deficits, which are low and projected to disappear over the next few years. Refinancing government debt is not inflationary, as it creates no new purchasing power. The ECB is merely a “central counterparty” between risk-averse German savers and the Italian government.

Much has been written about Europe’s sluggish growth, but the record is actually not so bad. Over the last decade, per capita growth in the US and the euro zone has been almost exactly the same.

The root of the problem Given this relative strength in the euro zone’s fundamentals, it is far too early to write off the euro. But the crisis has been going from bad to worse, as Europe’s policymakers seem boundlessly capable of making a mess

out of the situation.

The problem is the internal distribution of savings and financial investments: although the euro zone has enough savings to finance all of the deficits, some countries struggle, because savings no longer flow across borders. There is an excess of savings north of the Alps, but northern European savers do not want to finance southern countries like Italy, Spain, and Greece.

That is why the risk premia on Italian and other southern European debt remain at 450-500 basis points, and why, at the same time, the German government can issue shortterm securities at essentially zero rates. The reluctance of Northern European savers to invest in the euro periphery is the root of the problem.

So, how will northern Europe’s “investors’ strike” end?

The German position seems to be that financial markets will finance Italy at acceptable rates if and when its policies are credible. If Italy’s borrowing costs remain stubbornly high,

the only solution is to try harder.

The Italian position could be characterized as follows: “We are trying as hard as humanly possible to eliminate our deficit, but we have a debtrollover problem.”

The German government could, of course, take care of the problem if it were willing to guarantee all Italian, Spanish, and other debt. But it is understandably reluctant to take such an enormous risk – even though it is, of course, taking a big risk by not guaranteeing southern European governments’ debt.

The ECB could solve the problem by acting as buyer of last resort for all of the debt shunned by financial markets. But it, too, is understandably reluctant to assume the risk – and it is this standoff that has unnerved markets and endangered the euro’s viability.

An unresolved conflict Managing a debt overhang has always been one of the toughest challenges for policymakers. In antiquity, the

conflicts between creditors and debtors often turned violent, as the alternative to debt relief was slavery.

In today’s Europe, the conflict between creditors and debtors takes a more civilized form, seen only in European Council resolutions and internal ECB discussions.

But it remains an unresolved conflict. If the euro fails as a result, it will not be because no solution was possible, but because policymakers would not do what was necessary.

The euro’s long-run survival requires the correct mix of adjustment by debtors, debt forgiveness where this is not enough, and bridge financing to convince nervous financial markets that the debtors will have the time needed for adjustment to work. The resources are there.

Europe needs the political will to mobilize them.● Daniel Gros is director of the Center for European Policy Studies.

Copyright: Project Syndicate, 2011. project-syndicate.org

Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

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COVER STORY

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JANUARY 9-15, 2012

Art as investment

A picture of potential Ella Pa∏ka

Art as an investment is a relatively new phenomenon in post-communist Poland, but one that is slowly beginning to take hold. With this market’s potential far from fully realized, opportunities for growth abound. A number of market players have already started responding to an expanded potential client base, while higher purchasing power in Poland is expected to lead to an increase in demand for Polish art in the future. For now, however, Poland’s art market remains limited to a niche group of investors who fall into the country’s highest income brackets. The success of Poland’s art investment market, experts say, will therefore depend on increasing awareness of art in general.

Steep costs Collecting art has long been a favorite pastime of the wealthy. According to Pawe∏ Makowski, founder of NewConnect-listed Abbey House, the only Polish fine art auction house to go public, “people buy art when they’ve reached a certain standard of living. It’s a form of snobbery.”

The cost of this particular hobby can be steep indeed, and can also play a role as a

status symbol for many. “Art has always been something to boast about, something to show off,” added Mr Makowski. Nevertheless, it still remains a marginal activity among Poland’s high-networth individuals, few of whom purchase art, he said.

According to KPMG, there are close to 900 galleries and antique stores in Poland, and 10 auction houses selling fine art – including paintings, drawings, sculptures and photography. Despite this promising start, Poland’s art market is still underdeveloped compared to many in the West. Poland’s recent history takes much of the blame for this. Looting of artwork during World War II, most of which never found its way back to Poland, means there is now little older art in the country. Following the war, decades of communist rule also served to impede the market’s development.

A lack of development of the contemporary art segment, low demand due to comparatively lower levels of wealth, low internationalization of the Polish art market, and a lack of foreign capital are other factors which have helped limit the growth of the

Masterpiece market Percentage of sales of contemporary art in Poland, H1 2011, by auction house Abbey House

0.5%

Desa Unicom

7.6% 7.7%

Polswiss Art

8.6% 43.1% 16.1%

Sopocki Aucion House Rempex

16.4%

Rynek Sztuki Others

Source: Art & Business Magazine

country’s art market, according to KPMG.

account for no more than 10 percent of clients’ investment portfolios.

But it is not just younger Poles who are investing in Polish art in growing numbers.

According to Mr Kokoszka, more and more foreigners coming to visit Poland buy art

Signs of change But although the foundations for a strong art investment market are still being built, its potential is significant, not least because of Poles’ increasing wealth, said Jakub Kokoszka, vice president of Abbey House and president of the board at Art & Business magazine.

The value of Poland’s art market is estimated at just z∏.300 million, with 30 percent of this generated through sales at auction houses. Poles spent close to z∏.28.3 billion on luxury goods in 2009, and an estimated z∏.34.8 million on fine art at auctions in 2010, according to KPMG. So why isn’t more already being spent on art? Experts say the main problem is a lack of knowledge about the art market. The key to growth may lie with the younger generation which, in recent years, has helped to transform Poland’s art market.

According to Zuzanna Sokalska, director of Galeria Art NEW media in Warsaw, the most typical buyer of art is a young businessperson living in the capital. “Before, it used to be people in their 50s, and now they’re 30plus,” she said.

Mr Kokoszka from Abbey House said that younger buyers have also brought about a change in tastes in Poland. “A couple of years ago it used to be a very closed target group of Polish art collectors who were focusing mainly on old Polish masters. … Now the trend has turned to [Polish] contemporary and modern art.”

Today, Abbey House’s average client is a male entrepreneur aged between 30 and 55 who lives either in Warsaw, Kraków or Wroc∏aw, and dedicates €10,000100,000 for art investments, said Mr Kokoszka. These investments, he added, are normally made for a minimum of two years and

net-worth clients can take advantage of art banking services. “We offer art banking, but not for every client. Private banking clients interested in such a service need to have at least z∏.1 million in assets,” said ¸ukasz Myszka, a PR representative from BRE.

make investing in art more attractive for clients who may not have the knowledge to do so on their own. So far, the strategy is working, said Mr Kokoszka, and the company plans to offer another round of subscriptions to its art fund in the first quarter of 2012.

COURTESY OF ZACH¢TA

Investing in art is becoming increasingly popular among wealthy Poles, but it still has plenty of room for growth

“Painting CXCIII” (1965) by Stefan Gierowski, whose “Painting XCIII” (1960) is the most expensive piece of contemporary art ever sold in Poland in the country because “the artistic level is really high and the level of prices really low.”

It is not uncommon to hear stories about German buyers coming to galleries in Poland and buying 20 pieces of art, he added.

Banking and art Several firms have picked up on this new interest from buyers and have started offering specialized services. At BRE Bank for example, some high-

Adam Che∏stowski, art gallery director at DESA Unicum, a company which arranges auctions for art work and antiquities, said the firm cooperates with a number of banks, including Millennium and Noble Bank, as well as BRE Wealth Management and financial advisors Xelion.

Another option for investors could be a closed art investment fund, such as the one recently launched by Abbey House, which aims to

Investors can also choose a lease-to-own option, which allows them to purchase art through monthly installments.

But the concept of helping high-net-worth clients invest in alternative assets such as art, vintage wine and antiques is still in its infancy in Poland, and services related to these investments are not widely available. Alior Bank is one institution to have considered entering the market, although it hasn’t done so yet.

COVER STORY

JANUARY 9-15, 2012

www.wbj.pl

13

Legal Eye

High prize Top 10 most expensive contemporary paintings sold at auction in Poland, 2009 – 2010 Artist

Title

Year

Price

Auction house

Stefan Gierowski

“Painting XCIII”

1960

z∏.470,000

Rempex

Andrzej Wróblewski

“Garbuska-Garbata we wn´trzu”

1955

z∏.390,000

Rempex

Tadeusz Kantor

“Zosta∏em porwany przez dziewczyn´”

1988

z∏.335,000

Polswiss Art

Jerzy Nowosielski

“Porwanie Europy,”

1976

z∏.295,000

Polswiss Art

Wojciech Fangor

“M53”

1968

z∏.232,000

Polswiss Art

Henryk Sta˝ewski

Untitled

1963

z∏.180,000

Rempex

Kazimierz Mikulski

“Pi´knie zaczyna sie dzieƒ”

1983

z∏.138,000

Agra-Art

Jan Tarasin

“Przedmioty III”

1965

z∏.120,000

Rempex

Jerzy Tchórzewski

“Syn”

1958

z∏.120,000

Polswiss Art

Teresa Pàgowska

“Kolumny z cyklu Figury magiczne”

1983

z∏.100,000

Artfully legal Judith Gliniecki is a Partner with Wierzbowski Eversheds judith.gliniecki@eversheds.pl Beauty is in the eye of the beholder. With art, ultimately it doesn’t matter whether your notion of “beauty” is based on aesthetic taste or potential investment value. With a good eye and maybe a little luck, you could have both.

However, before you invest you may want to consider the legal and tax implications.

Polswiss Art Source: Galeria Art NEW media

While choices are still limited for individual investors, experts say corporate buyers are almost completely absent from the Polish art market.

Many banks in the West actively engage in investing in art, with Germany’s Deutsche Bank being one notable example.

Echoing a sentiment that appears commonplace in Poland, Artur Maliszewski, vice president of Alior Bank, said his firm was not knowledgeable enough about the art market to invest its money in it just yet.

“We have to understand the things we invest in and we really don’t understand this market,” he told WBJ. Nevertheless, Tatiana Rasa∏a, an art history scholar and critic at the Polswiss Art auction house, said that three or four banks and several investment firms in Poland do purchase art as an investment, although she declined to state which ones.

She added that “approximately 70 percent of those purchasing art do so as an investment in order to make money in the future.” She said that some people buy during a crisis

because art prices tend to be cheaper. Adam Che∏stowski, meanwhile, said that “some” buyers at DESA Unicum are purchasing art as an alternative investment as security against the crisis.

Doing your homework Any investment carries risk, and art, although one of the most stable long-term alternative investments, is no exception. Investing in younger, less well-known artists is one lower-budget option, said Galeria Art NEW media’s Ms Sokalska. She added, however, that this kind of investment does not guarantee success.

“It’s more of a lottery than an investment, because the artists could stop working in the field altogether,” she added.

Another option is to buy wellknown artists’ smaller works or their works on paper.

For those who can afford it, investing in the works of established artists can yield sizable profits. According to Mr Che∏stowski, “exceptional works of art sell well even during times of crisis.” A number of works by Polish contemporary artist Wil-

helm Sasnal, for example, which sold for around z∏.2,000 10 years ago, were valued at z∏.400,000 in 2009. Paintings by artist Stefan Gierowski, which sold for z∏.50,000 five years ago, now sell for around z∏.90,000.

One of Mr Gierowski’s paintings, “Painting XCIII,” also currently holds the record for the most expensive contemporary art work ever sold in Poland, at z∏.470,000, said Ms Sokalska.

Most experts agree that being represented by major art galleries and museums in Poland, as well as exposure on the international market, have the most significant positive impact on the future value of an artist’s work.

According to former tennis player, art collector and gallery owner Wojciech Fibak, the sum of opinions from critics, curators, dealers and collectors is what really drives prices up.

Judging which artists are likely to become successful requires no little expertise, but that is not the only issue to consider before buying. For example, anyone wishing to sell an artwork within six months of making a purchase must pay a capital gains tax

(the tax does not apply after this period). However, those ready to sell will also need to pay a service fee of around 20 percent of the price to the gallery or auction house that handles the transaction.

Often, the fee is negotiable.

Anyone wishing to purchase older works should also bear in mind export restrictions on works created 50 or more years ago, and on works created by artists who are deceased.

Ultimately, while there is a great deal involved in understanding art as an alternative investment, for those willing to learn, the rewards can be large indeed. One thing that all experts highlighted was that exceptional artwork by wellregarded artists always sells, and at high prices. The fundamental question, then, is how much you can afford to pay ●

Taxing matters Taxes are an inevitable part of modern life and do not make an exception for objects of beauty. When you buy a work of art, various taxes may be due. If that art costs more than z∏.1,000, you, as the buyer, will need to pay a 2 percent civil transaction tax (formerly known as “stamp duty”). You may also need to pay VAT on your purchase.

When you sell that work of art, tax may also be due.

You will need to include the amount of the profit from the sale when calculating your income tax, unless you are merely a hobby collector and have held the art for more than 6 months.

Log on to WBJ.pl to read an extended interview with Anna Tomczak, curator at the Zach´ta National Gallery of Art, for an inside look at one of the most highly regarded galleries in the country.

COURTESY OF CULTURE.PL

Age matters

Polish contemporary artist Wilhelm Sasnal’s painting “Kacper and Anka” (2009)

While it may be uncouth to ask a lady about her age, it is a crucial question with art. If a painting is over 50 years old, you may need to obtain a permit if you ever want to take it out of Poland.

It’s not just about art.

With so much having been destroyed or carried off during the last few centuries, but particularly during World War II, Poland is sensitive about keeping its remaining older art, antiques and other items of cultural heritage.

Poland’s Law on Preservation and Conservation of Relics protects a broad spectrum of “relics.” The definition of a “relic” includes anything that “stands as witness to a bygone era or event, the preservation of which lies in interest of society because of its inherent historical, artistic or scientific value.” Even as a lawyer who is good at splitting hairs, I’m not quite sure

what wouldn’t qualify as a relic. The legal commentaries on the issue also do not provide much clarification. As to artistic value, it has been suggested that it relates “in essence to an individual feeling about and perception of beauty.”

To be safe, you should assume that anything that was created more than 50 years ago and could be remotely considered art could be a protected relic.

Worth matters In 2010, the Law was amended to allow a key set of exceptions for low-value relics. This is not a revolution, but more of a move to debureaucratize. Unofficially, before 2010 it was assumed that it should not be a problem to obtain an export permit for lowvalue items.

The thresholds of low value depend on the type of art. The general threshold for artistic works is z∏.40,000. However, the Law lists different amounts for different techniques.

As examples, the low value threshold for watercolor is only z∏.16,000. For a photograph, this amount drops to z∏.6,000.

Fifty years is also a rule of thumb, and longer periods apply to some categories. For example, the threshold for a map is 100 years old and a value of more than z∏.6,000.

You don’t have an additional argument if the work of art is in poor condition. Older works of art are protected regardless of their condition.

Permits If your investment plans involve art of a higher value and you want to consider taking it outside of Poland, whether for sale on a different market or for your own personal use, you will likely need a permit. When in doubt, you should visit the local Voivodship Conservation Office to apply for an export permit. ● The author gratefully acknowledges the assistance of Karolina Stawowska, the head of our tax practice, in preparing this article.

14

JANUARY 9-15, 2012

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German real estate company IVG Immobilien has acquired another office building in Warsaw 16

Investors and experts are optimistic about the prospects for planned theme park developments in Poland

18

LOKALE IMMOBILIA

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

Skanska receives permits for offices Developer Skanska Property Poland has obtained a building permit for its Atrium 1 office project in Warsaw. Located near the capital’s ONZ Roundabout, the 15-storey class-A investment will deliver 18,000 sqm of leasable space once it is completed at the turn of 2013 and 2014.

According to the company, Atrium 1, which has already been LEED-precertified, will be the most sustainable office building in Poland. The development is to feature pioneering energy-saving and environment-friendly solutions, including a geothermal heating and cooling system which is currently used in just a few office buildings in Europe.

“I am very proud that we are starting the construction of a unique office building which is going to be a pioneer project on the Polish market. I am happy that once again it is Skanska that sets new trends in green office development,” Waldemar Olbryk, president

Concept Tower commercialization Cushman & Wakefield has become the exclusive leasing agent for office space in the under-construction Concept Tower office project in Warsaw.

Located at the intersection of ul.

Grzybowska and ul.

Karolkowa in the capital’s Wola district, the scheme is set to be completed in the fourth quarter of 2012. The Concept Tower project, whose investor is the Concept Development Group, will be a 15-storey class-A investment offering more than 9,000 sqm of leasable office space. ●

COURTESY OF QUESTIA

The company has also launched construction on the second phase of its Green Corner scheme in the capital

The BPT Optima real estate investment fund, managed by BPT Asset Management, has sold the Moniuszki Tower office building in Warsaw to European asset manager Catalyst Capital.

The value of the transaction has not been disclosed. Jones Lang LaSalle advised BPT in the sale of Moniuszki Tower while CBRE acted on behalf of Catalyst Capital. The Moniuszki Tower high-rise is located in downtown Warsaw and comprises almost 11,600 sqm of space.

Atrium 1 is set for completion at the turn of 2013 and 2014 of Skanska Property Poland, said in a statement.

The company has also received the go-ahead to

New Skanska offices . . . . . . . .15

Echo Investment malls . . . . . . .16 Property-related stocks . . . . . .16 Notus interview . . . . . . . . . . . . .17 Theme parks in Poland . . . . . . .18

COURTESY OF MADE IN PR

Wola House scheme . . . . . . . . .15

Młodziejowski Palace . . . . . . . .16

develop Malta House, an office development in Poznaƒ, Wielkopolskie voivodship, which is expected to be

the first LEED-certified office property in the city. Construction on the scheme, which will deliver 15,700 sqm

of leasable space, will launch later this month and finish in Q3 2013.

In related news, Skanska Property Poland has launched construction on the second phase of its Green Corner office complex in the Polish capital. Building B in the complex, which just like the other Skanska schemes will be a sustainable project, will comprise 13,000 sqm of leasable space.

The Green Corner complex, which is located at the intersection of ul. Wronia and ul. Ch∏odna in Warsaw’s Wola district, has been under construction since February 2011 and is scheduled to be completed by the end of this year. Skanska has recently signed the first two deals for space in Green Corner’s building A, leasing a total area of 7,300 sqm.

Skanska Property Poland has been operating since 1997. The company’s completed office investments include Poland’s first EU GreenBuilding-certified developments – the Deloitte House and Marynarska Point projects in Warsaw and the Grunwaldzki Center scheme in Wroc∏aw, Lower Silesia voivodship.

Adam Zdrodowski

Unidevelopment plans another office building in Warsaw

In this issue

IVG buys

JANUARY 9-15, 2012 LI 17/01

Office

Moniuszki Tower changes hands

Wzorcownia project sold . . . . .16

•

The Wola House scheme will comprise almost 33,900 sqm of total space

Developer Unidevelopment, which is currently building Grzybowska 81 in Warsaw, the first office project in the firm’s history, is planning another office investment in the Polish capital. The company has signed a preliminary conditional agreement concerning the acquisition of a special purpose vehicle which will build the Wola House office scheme in Warsaw’s Wola district.

The planned development, which will be located on Warsaw’s Al. Prymasa Tysiàclecia, has already received a building permit.

Unidevelopment’s acquisition of the Wola House project is contingent on the company commercializing a satisfactory amount of space in the investment.

The Wola House scheme will be a class-A facility offering nine above-ground and three underground floors with a total of almost 33,900 sqm of space, of which more than 19,100 sqm will be devoted to office space. The development’s parking lot will offer parking spaces for 248 cars.

“We see the development of projects in the office sec-

tor as a permanent part of our firm’s activities. This year we started the first investment of this kind and had great success selling the building to Bank Polskiej Spó∏dzielczoÊci, before construction even launched,” Zbigniew GoÊcicki, president of Unidevelopment’s management board, said in a statement.

“The diversification of the offer is our way of efficiently developing our activities in challenging market conditions,” Mr GoÊcicki added.

Adam Zdrodowski

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

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

JANUARY 9-15, 2012

Shopping centers

Three major tenants of the International Business Center I and II office buildings in Warsaw – Union Investment, Bouygues Immobilier and British Telecom, which occupy a total of 2,800 sqm – have extended their agreements for leasing space in the buildings.

Two other tenants in the IBC project – PwC and Samsung Electronics – have leased additional space, which combined amounts to more than 1,800 sqm. The IBC scheme is owned by Accession Fund SICAV.

Mokotowska Square building sold Developer Yareal Polska has sold its Mokotowska Square office and retail building in central Warsaw to German real estate fund Deka Immobilien. The value of the transaction has not been revealed. The seven-floor Mokotowska Square facility offers over 8,600 sqm of office space and almost 1,300 sqm of retail space. ●

Echo Investment launches Galeria Amber project in Kalisz The developer has also secured financing for its Galeria Veneda mall scheme in ¸om˝a Warsaw Stock Exchange-listed developer Echo Investment is launching construction on its Galeria Amber shopping center project in Kalisz, Wielkopolskie voivodship. The company has just selected Eiffage Budownictwo Mitex as the general contractor of the mall.

The value of the companies’ agreement amounts to over z∏.162 million. The Galeria Amber development, which will be located at the intersection of Kalisz’s ul.

GórnoÊlàska and Trasa Bursztynowa, is scheduled to be completed in the second quarter of 2013.

The four-floor investment will offer 33,500 sqm of leasable space housing 140 stores, including a hypermarket, and points of services. A multi-screen movie theater operated by Helios will also be part of the scheme. Visitors will have approximately 1,100 parking spaces at their disposal.

A preliminary architectural

concept for Galeria Amber was provided by Bose International Planning and Architecture. The Artur Jasiƒski i Wspólnicy Biuro Architektoniczne studio furnished the design of the mall.

In related news, Echo Investment has signed an agreement with Raiffeisen Bank Polska concerning a €14.35million loan that it will use to help finance its Galeria Veneda shopping center project in ¸om˝a, Podlaskie voivodship.

“I am glad that the bank has recognized the potential of the investment which is being built in a small, well developing urban center,” Grzegorz Iwaƒski, director of the financing department at Echo Investment, said in a statement.

Galeria Veneda will be located at the intersection of ¸om˝a’s ul. Zawadzka and ul.

Sikorskiego and is expected to become the largest mall in the region. The project will offer 16,000 sqm of leasable space, 75 percent of which has already been commercialized.

The design of Galeria Veneda was furnished by

Property-related stocks Security

Closing price on Jan 5

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

77.00

0.65

64.00

109.20

-24.88

25,530,098

1,965.82

CELTIC

17.52

0.11

15.55

24.89

-26.94

34,068,252

596.88

DOMDEV

29.41

-0.31

23.50

50.80

-29.12

24,560,222

722.32

ECHO

3.40

3.34

3.05

5.55

-31.31

420,000,000

1,428.00

ELBUDOWA

96.00

-1.03

87.00

169.90

-43.20

4,747,608

455.77

ENERGOPLD

1.81

-3.21

1.81

4.10

-51.60

70,972,001

128.46

ERBUD

17.40

18.37

14.65

57.00

-69.20

12,644,169

220.01

GANT

6.22

-3.57

5.85

17.60

-62.42

20,499,953

127.51

GTC

8.77

-5.70

8.64

24.60

-63.98

219,372,990

1,923.90

HBPOLSKA

0.81

10.96

0.70

3.01

-73.36

210,558,445

170.55

JWCONSTR

5.78

7.24

4.36

15.70

-62.71

54,073,280

290.91

LCCORP

0.88

1.15

0.85

1.69

-40.54

447,558,311

393.85

MARVIPOL

8.9

-0.56

7.22

10.34

-14.01

36,923,400

328.62

MIRBUD

1.99

0.51

1.94

4.75

-51.11

75,000,000

149.25

MOSTALWAR

16.30

1.88

15.40

59.30

-72.51

20,000,000

326.00

MOSTALZAB

1.33

3.91

1.07

3.00

-55.22

149,130,538

198.34

ORCOGROUP

15.15

4.63

14.00

40.00

-45.39

17,053,866

258.37

PBG

75.85

6.83

56.05

212.00

-63.53

14,295,000

1,084.28

PLAZACNTR

2.04

4.62

1.80

5.15

-58.20

297,174,515

606.24

POLAQUA

5.14

11.98

4.53

20.60

-70.89

27,500,100

141.35

POLIMEXMS

1.66

0.00

1.23

4.02

-58.60

521,154,076

865.12

POLNORD

13.47

-0.96

11.03

33.59

-58.17

23,798,439

320.56

RANKPROGR

13.47

-0.96

11.03

33.59

-58.17

23,798,439

320.56

ROBYG

1.10

0.00

1.04

2.13

-40.86

257,390,000

283.13

RONSON

0.82

0.00

0.77

1.58

-44.22

272,360,000

223.34

TRAKCJA

0.71

4.41

0.65

4.00

-82.47

232,105,480

164.79

ULMA

64.40

-0.77

57.00

88.00

-20.20

5,255,632

338.46

UNIBEP

5.99

0.67

4.47

10.00

-40.10

33,927,184

203.22

WARIMPEX

3.23

9.49

2.95

10.89

-67.21

54,000,000

174.42

ZUE

5.40

-3.05

5.07

14.54

-62.66

22,000,000

118.80

Galeria Amber will offer 33,500 sqm of leasable space the Warsaw-based Màka Sojka Architekci studio, in cooperation with Echo

Investment’s architectural team. The mall is being built by Instal Bia∏ystok and

is scheduled to be completed in November 2012.

Adam Zdrodowski

Blackstone buys Wzorcownia mall The Blackstone real estate fund has acquired the Wzorcownia shopping center in W∏oc∏awek, Kujawsko-Pomorskie voivodship, from Polish investor and developer Budizol. The value of the transaction has not been disclosed.

The Wzorcownia mall has joined King’s Street Retail, a collection of shopping centers funded and asset-managed by Blackstone that currently also includes Magnolia Park in Wroc∏aw, Galeria Twierdza in K∏odzko, Galeria Twierdza in ZamoÊç and Galeria Pestka in Poznaƒ.

“Wzorcownia is a unique project, both in terms of its excellent location in the heart of W∏oc∏awek and an appealing architectural design,” said Paul Kusmierz, president of Master Management Group, which

manages Wzorcownia and the other King’s Street Retail malls.

He added that the company sees great capacity for growth and improvement in the mall.

“Our immediate objective is to increase the profile of Wzorcownia through an active marketing and branding strategy to further grow footfall and sales for the mall’s tenants,” Mr Kus-

mierz said.

The Wzorcownia shopping center was developed through the revitalization of a 19th-century pottery factory. The mall comprises 25,500 sqm of GLA and 400 parking spaces. Apart from stores, it offers entertainment and leisure facilities including a cinema and a bowling center. Adam Zdrodowski

COURTESY OF QUESTIA

IBC lease renewals

COURTESY OF ECHO INVESTMENT

16

Wzorcownia mall is located in a 19th-century factory

IVG acquires M∏odziejowski Palace in central Warsaw German real estate company IVG Immobilien recently acquired the M∏odziejowski Palace office project in Warsaw from a firm managed by developer Mermaid Properties. The value of the transaction was approximately €22.4 million.

Located in central Warsaw, the historical building was refurbished last year, becoming a class-A office property offering almost 7,000 sqm of leasable space.

Tenants include Poland’s Ministry of Foreign Affairs and consulting

company A.T. Kearney.

“It is one of the most highprofile transactions of last year and we are pleased to add M∏odziejowski Palace to our growing office portfolio,” Maciej Zajdel, managing director of IVG Poland, said in a statement.

“Warsaw remains the focus for international capital and this acquisition reinforces the international appeal of Warsaw for real estate investors [who recognize] the long-term strength of the Polish capital’s office market,” Mr Zajdel added.

M∏odziejowski Palace is the fifth office building in Warsaw acquired by IVG for its various funds over the last 15 months.

Earlier the company acquired the capital’s Victoria Building, BTC, Ujazdowskie 10 and N21 schemes.

CBRE acted as a commercial advisor to IVG in its acquisition of M∏odziejowski Palace and the Siwek Law Office provided legal services.

DTZ was the exclusive agent for the selling party in the transaction.

Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

JANUARY 9-15, 2012

Mortgage market

COURTESY OF TAUBER PROMOTION

Outlook fair, despite major changes

Lokale Immobilia talks to Robert Pep∏oƒski, president of the management board of financial advisory Dom Kredytowy Notus, about the prospects for mortgage lending in 2012 and the mortgage brokerage market in Poland Adam Zdrodowski: What is the forecast as far as banks’ mortgage-lending activity in 2012 is concerned?

Robert Pep∏oƒski: Despite the turmoil in European markets and the difficulty in forecasting future scenarios, the stable condition of the Polish economy allows us to predict a relatively good situation in the mortgage market in 2012.

The sector still has considerable potential. According to data from a Q3 2011 report by AMRON-SARFiN, the total number of mortgages has increased to 1.6 million and their total volume has already exceeded z∏.300 billion.

This is good news, but there is worse news as well. The same report shows that the number and volume of mortgages granted in Q3 were lower by 4.64 percent than in Q2. It is hard to tell if this is a one-off decline or a trend which will deepen in the future.

Banks were obliged to adopt a new Financial Supervision Authority recommendation by the end of last year. How significant are the changes for future mortgage-takers?

According to the provisions of the recommendation, a monthly installment of a foreign-currency denominated mortgage cannot exceed 42 percent of the mortgage-taker’s revenues.

Additionally, for all currencies, a shorter-than-before period of not more than 25 years is used for the purpose of calculating one’s creditworthiness.

While analyzing a client’s situation, banks also have to take into account a potential decrease in monthly revenues once the client has retired.

These and other provisions of the recommendation have, according to analysts’ estimates, resulted in a decrease of clients’ creditworthiness by 6-9 percent.

How will the end of the government’s Family on its Own subsidized mortgage program for first home buyers affect the market?

Family on its Own mortgages accounted for almost 10 percent of all mortgages granted between 2007 and June 2011. In mid-2011, almost 50 percent of all transactions concerned the used apartments market.

The introduced changes have already resulted in the exclusion of the used apartments market from the program; they will only impact the primary market to a limited extent. The lack of state support will divert the attention of some buyers towards cheaper apart-

ments and, as a result, smaller mortgages.

How popular are mortgage brokerage services in Poland?

The financial services market in Poland is relatively young compared to those in Western Europe but it is developing and growing all the time. Undoubtedly, one of the causes of the growing popularity of financial advisors is the fact that the Polish banking sector is in a very complicated milieu.

The differences in banks’

offers and procedures are huge, which often leads to confusion among clients and a lack of understanding of the requirements made by banks. It is here that financial advisors, who are familiar with and keep a close eye on the changing offers and requirements of banks, can offer their help.

Poles’ interest in mortgage brokerage services is corroborated by the constantly improving results of firms that belong to the Financial Advisory Firms Association (ZFDF). In the

first three quarters of last year members of the ZFDF brokered mortgages valued at a total of z∏.12.94 billion.

Developers themselves are starting to offer mortgage brokerage services in increasing numbers ...

There are many differences between a financial advisory and a mortgage department of a development firm. The main advantage of mortgage advisors at a financial advisory is the fact that they specialize in bank

www.wbj.pl

17

products and base their business on that. Unlike small mortgage departments at development companies, large financial advisories cooperate with the majority of banks in the market.

Financial advisories are characterized by their independence. While calculating a client’s creditworthiness, their advisors do not limit themselves to one particular property, which advisors at a development company do. The latter advisors won’t take properties offered by the competition into account while calculating a client’s creditworthiness and the potential client wants to be shown a wide range of offers. ●

www.wbj.pl

Erbud in Auchan contract Auchan Polska has selected construction company Erbud as the general contractor of the shell and core of a new Auchan hypermarket that will be developed in Bronowice near Kraków, Ma∏opolskie voivodship.

The value of the deal is z∏.179.5 million.

Construction on the scheme has just launched and is expected to be finished in March next year.

IKEA center extension IKEA has opened the extension of its regional distribution center in Jarosty near Piotrków Trybunalski, ¸ódzkie voivodship. Due to the investment, which was launched in December 2009 and cost z∏.160 million, the facility has been expanded by 47,000 sqm of space to reach today’s 150,000 sqm.

“Thanks to the considerable extension of the warehouse space and the employment of modern technological solutions we will be able to serve even more efficiently IKEA stores in as many as six European countries,” Goran Hansson, managing director of IKEA Distribution Services, said in a statement.

Promenady Wroc∏awskie permit The first residential building in Vantage Development’s Promenady Wroc∏awskie mixed-use project in Wroc∏aw, Lower Silesia voivodship, has obtained a building permit. ●

LOKALE IMMOBILIA – REAL ESTATE

JANUARY 9-15, 2012

Theme parks

Rollercoaster to success?

Details of two large theme park investments were announced in Poland last year. Will the developments succeed amid the growing economic worries in the country?

Two large-scale theme park projects are expected to be developed in Poland in the upcoming years. The country has to date not seen similar developments but will the schemes be financially feasible as the economic uncertainty persists?

Last summer a Luxembourg-based consortium of private investors said it would spend €400 million on a theme park called Adventure World Warsaw, located in Grodzisk Mazowiecki, some 40 kilometers from the capital.

The project, which will be be built and managed by a special purpose vehicle called Las Palm, will be divided into five different thematic zones evoking various fairy tales and legends. It will also include cinemas and hotel space. Construction should commence in July.

For its part, Global Parks Poland, a company that belongs to Moshe Greidinger, the co-owner of the Cinema City Poland multiplex chain, confirmed in December it would build an investment called Park of Poland in the Mszczonów municipality in western Mazowieckie Voivodship.

The development, whose first phase is valued at z∏.2.2 billion and is scheduled to be completed in mid-2015, will feature a theme park, a water park, hotels, shops, cinemas and a number of other facilities.

Untapped potential According to Sebastian Barbasiewicz, member of the management board of Las Palm, there is large demand in Poland for the kind of entertainment that his company’s facility will offer, especially

since the supply, when it comes to projects of this scale, is virtually non-existent.

“There is not a single park in Poland on the scale of those which we know from Western Europe: Efteling [in the Netherlands] or Europa Park [in Germany]. Those parks are visited by hundreds of thousands of Poles every year,” Mr Barbasiewicz said.

He added that theme parks are somewhat resilient to economic hardship, and likened this to how Poles tend to spend more and more in the Christmas period every year despite the ongoing economic crisis.

“The spending of time with one’s family in a valuable way is very important for Poles.

Meanwhile, today most families spend their weekends in front of a TV set or in a shopping center,” Mr Barbasiewicz said.

In his view Poland, with its population of 38 million, could house several theme parks. He noted that in the Netherlands, a country that is more than two times smaller than Poland in terms of population, more than 10 such facilities operate.

A prime location Could the fact that both of the recently announced new Polish theme park projects are to be located in the same part of the country be a major problem? Not really, according to Agnieszka Olszewska, an associate in the retail department of Cushman & Wakefield in Poland.

She argued that compared to the rest of Poland, Warsaw and the neighboring locations make up a region with a huge potential for this kind of offer.

She noted that the sheer size of the capital and the number of its households and families

SHUTTERSTOCK

18

The two theme parks will be the first investments of their kind in Poland with children point to the demand for such parks in the area.

“One has to remember that Warsaw does not have such attractions; so far we have mostly seen the development of water parks and ropes courses in the region. The inhabitants of Warsaw definitely need such an offer to avoid traveling to popular European theme parks,” Ms Olszewska said.

She added that the parks would help promote Warsaw and the whole region. Despite the parks’ proximity to each other, their central location, potential and complimentary offers will help them attract visitors, Ms Olszewska said.

“If only the projects prove to be characterized by high quality and sufficient scale I am convinced that both locations will fit perfectly into the entertainment market and

will be successful in the longterm.”

Right time to build?

The potential may be there, but why should two such large investments be announced at a time when the prospects for commercial real estate are, amid the general economic uncertainty in Europe, hard to forecast?

Cushman & Wakefield’s Olszewska pointed out that the projects are in the planning and finance-securing stage and it will therefore take a few more years before the developments can open for business.

“Maybe it is worth starting such investment in less favorable times, so that they can be opened in better times and at a moment when the economic situation will be more conducive to expenditures on all kinds of

entertainment,” Ms Olszewska said.

Las Palm’s Barbasiewicz noted that the company had been preparing the Adventure World Warsaw project for almost three years. In 2011, the firm managed to reach a number of crucial decisions: it signed a letter of intent and discussed land and planning issues with the local authorities.

“The economic slowdown is not a reason for anyone of us to doubt in the success of this investment.

We have a unique, even historic, opportunity in front of us to open the first large thematic park in Poland and the largest one in this part of Europe,” Mr Barbasiewicz said.

Despite repeated attempts to contact the company, Global Parks Poland was unavailable for comment on this story.

Adam Zdrodowski

MARKETS

JANUARY 9-15, 2012

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

12,415.70 (Jan 5 close)

S&P500

2,669.86 (Jan 5 close)

1.62% (for the week)

FTSE100

1,281.06 (Jan 5 close)

2.48% (for the week)

DAX

5,624.26 (Jan 5 close)

1.87% (for the week)

0.93% (for the week)

Signs of a difficult year to come?

NIKKEI225 6,095.99 (Jan 5 close)

8,488.71 (Jan 5 close)

3.35% (for the week)

0.39% (for the week)

CHANGE: 0.75%

CHANGE: -1.23%

CHANGE: 0.75%

CHANGE: -6.02%

CHANGE: -12.26%

CHANGE: -19.47%

(year to Jan 5)

(year to Jan 5)

(year to Jan 5)

(year to Jan 5)

(year to Jan 5)

(year to Jan 5)

52-week high: 12,876.00

52-week high: 2,887.75

52-week high: 1,370.58

52-week high: 6,105.77

52-week high: 7,600.41

52-week high: 10,891.60

52-week low: 10,404.49

52-week low: 2,298.89

52-week low: 1.074.77

52-week low: 4,791.01

52-week low: 4,965.80

52-week low: 8,135.79

The Warsaw Stock Exchange got off to a good start this year with the blue-chip WIG20 index gaining over 2 percent on Monday, January 2. The main WIG index also ended the day almost 2 percent higher. But things took a turn for the worse as the week progressed, as investors were reminded of the problems facing the global economy and, in particular, the fact that the euro-zone crisis has not yet been resolved.

Fears of a strong slowdown in Europe were reflected in most of the continent’s markets, which responded to disappointing bond yields. Thursday saw European bourses lose an average of 1 percent, following rising French bond yields.

Ongoing financial problems in Hungary affected sentiment in Warsaw on Thursday – the final day of

Major indices WIG

37,739.39 (January 5 close)

WIG20

2,157.43 (January 5 close)

05.01

04.01

03.01

02.01

30.12

29.12

28.12

27.12

23.12

22.12

21.12

20.12

19.12

05.01

04.01

03.01

02.01

30.12

29.12

28.12

27.12

23.12

2,000

22.12

36,000

21.12

2,060

20.12

36,600

19.12

2,120

16.12

37,200

15.12

2,180

14.12

37,800

13.12

2,240

12.12

38,400

09.12

2,300

08.12

39,000

16.12

52-week low: 2,089.84

15.12

Change year to January 5: -19.56%

14.12

52-week low: 36,549.47

13.12

52-week high: 2,932.62

Change year to January 5: -19.45%

12.12

Change for the week: 0.60%

09.12

52-week high: 50,371.74

08.12

Change for the week: 0.38%

Top 5 UNICREDIT SOBIESKI NTTSYSTEM PETROLINV SELENAFM

Closing 22.00 310.00 0.59 3.12 6.57

% change (week) 52-week high 570.73 30.70 46.92 285.00 37.21 1.13 36.24 13.00 23.96 22.50

52-week low 2.89 113.00 0.41 2.13 5.05

Top 5 PBG KGHM PGE TAURONPE PZU

Closing 75.85 114.00 21.14 5.45 312.50

% change (week) 6.83 3.07 2.13 1.87 1.13

52-week high 212.00 200.03 25.07 6.81 398.60

52-week low 53.70 102.40 15.98 4.65 283.10

Bottom 5 GETIN INTERBUD INTAKUS REINHOLD PBSFINANSE

Closing 2.60 5.51 1.08 0.96 0.47

% change (week) -63.12 -23.47 -22.30 16.52 -11.32

52-week low 3.37 5.30 0.61 0.93 0.32

Bottom 5 GETIN CYFRPOLSAT GTC LOTOS PGNIG

Closing 2.60 12.70 8.77 22.30 3.93

% change (week) -63.12 -5.93 -5.70 -4.29 -3.68

52-week high 15.29 17.69 24.80 49.50 4.65

52-week low 2.53 11.60 8.56 22.26 3.25

52-week high 8.00 17.39 1.64 6.24 1.53

sWIG80

NewConnect

40.90 (January 5 close)

05.01

04.01

03.01

02.01

30.12

29.12

28.12

27.12

23.12

22.12

21.12

WIG-Banki

5,366.81 (January 5 close)

SOURCE: WSE

05.01

04.01

03.01

02.01

30.12

29.12

28.12

27.12

23.12

22.12

21.12

20.12

19.12

05.01

04.01

03.01

02.01

30.12

29.12

28.12

27.12

23.12

22.12

5,200 21.12

39.0

20.12

5,280

19.12

39.6

16.12

5,360

15.12

40.2

14.12

5,440

13.12

40.8

12.12

5,520

09.12

41.4

08.12

5,600

16.12

52-week low: 4,944.19

15.12

Change year to January 5: -19.11%

14.12

52-week low: 40.15

13.12

52-week high: 7,387.49

Change year to January 5: -34.30%

12.12

Change for the week: -1.00%

09.12

52-week high: 62.08

08.12

Change for the week: -1.73%

42.0

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

52-week low: 8,218.71

19.12

16.12

52-week high: 12,932.00

15.12

14.12

05.01

04.01

03.01

02.01

30.12

29.12

28.12

27.12

23.12

8,200 22.12

2,000

21.12

8,300

20.12

2,040

19.12

8,400

16.12

2,080

15.12

8,500

14.12

2,120

13.12

8,600

12.12

2,160

09.12

8,700

08.12

2,200

13.12

Change year to January 5: -29.75%

12.12

52-week low: 2,076.52

09.12

Change year to January 5: -23.61%

08.12

Change for the week: 1.24%

Remi Adekoya

Bad start for the z∏oty

8,601.73 (January 5 close)

52-week high: 2,987.72

20.12

2,159.73 (January 5 close)

Change for the week: -0.65%

trading on the WSE last week due to a national holiday on Friday – with the market dominated by selling.

Both the WIG20 and mWIG40 lost around 1.2 percent, which effectively wiped out gains made at the beginning of the week. Even surprisingly good data from the US labor market didn’t help improve moods on the WSE on Thursday.

This week is also expected to be a tense one. First of all, there is the possibility that euro-zone members could have their credit ratings downgraded by S&P. In addition, there will be an auction of Spanish and Italian bonds, while the ECB is due to make announcements on monetary policy. All in all, 2012 is shaping up to be no less volatile on the markets than 2011.

Currency report

Other indices mWIG40

19

The EUR/USD started the year on a rebound to over $1.30 but dramatically retreated to $1.28 after a series of unsuccessful bond auctions in European countries including Italy, Hungary and France. This was despite good macro news from the US economy in the form of the ISM index and ADP employment report.

In 2011 Poland did not break the 55 percent threshold for its debt-to-GDP ratio, with the last NBP fixing of the EUR/PLN for 2011 at z∏.4.41 on December 30. From that day on, the z∏oty has been sliding, remaining strongly correlated with the falling EUR/USD and most importantly, with the Hungarian forint.

The Hungarian government approved controversial legislation limiting the cen-

tral bank’s independence, and there is now a danger that a deal with the IMF might not go through. The sell-off of Hungarian assets began, with the EUR/HUF hitting a record high of HUF324.

What is surprising is that investors still have not learned to distinguish Hungary from Poland and continue to treat the countries, along with the Czech Republic, as a single region. The effect on the z∏oty can be seen with the EUR/PLN advancing all the way to z∏.4.52 and the USD/PLN climbing to z∏.3.52.

Poland’s relatively healthy economic situation stands out among EU states. However, external factors still have a big influence on the z∏oty and as long as the situation in Hungary and the euro zone remains unsolved, the z∏oty is likely to continue to fall. ●

05.01

4.4787 04.01

SOURCE: NBP

4.4786

4.4601 03.01

4.4082 30.12

02.01

4.3853 4

29.12

0.1099 05.01

0.1084

0.1078

PLN-100JPY

5

04.01

03.01

0.1071 02.01

30.12

0.1059 29.12

3.6714

3.7037 05.01

0.10

0.1061

PLN-RUB

0.12

04.01

3.6622 03.01

3.6668 02.01

30.12

3.6167 29.12

5.3712

5.4616 05.01

3.5

3.6333

PLN-CHF

4.0

04.01

5.3394 03.01

5.3480 02.01

30.12

5.2641 29.12

3.4320

3.5081 05.01

5

5.2691

PLN-GBP

6

04.01

3.4277 03.01

3.4126

3.4454 02.01

30.12

05.01

3.0

29.12

4.5135

4.4753

3.5

3.4174

PLN-USD

4.0

04.01

4.4597 03.01

4.4640 02.01

30.12

4.4079 29.12

4

4.4168

PLN-EUR

5

4.5679

currency rates

20

THE LIST

www.wbj.pl

JANUARY 9-15, 2012

Corporate Services

Audit and Accounting Companies Ranked by revenue from auditing and accounting in 2010

Tax consultancy / M&A

5% 35%

22% 37%

✓ ✓

✓ ✓

1st half of 2011 / 2010 / 2009 / 2008

Other

Ernst & Young Rondo ONZ 1, 00-124 Warsaw 1 22 557-7000/22 557-7001 Ernst.Young@pl.ey.com www.ey.com/pl

WND 213.5 200.0 211.0

WND 497.0 424.0 444.0

PricewaterhouseCoopers Sp. z o.o. (1) Al. Armii Ludowej 14, 00-638 Warsaw 2 22 523-4000/22 523-4040 podatki@pl.pwc.com www.pwc.com/pl

242.4 194.9 188.9 165.0

453.7 389.1 399.7 388.8

6.6% 46.8%

22.7% 23.9%

106.8 171.2 176.8 176.6 (1)

230.0 407.0 455.0 440.3 (1)

2% 40%

Deloitte Audyt Sp. z o.o.

Al. Jana Paw∏a II 19, 00-854 Warsaw 4 22 511-0811/22 511-0813 dpoland@deloittece.com www.deloitte.com/pl

68.8 113.6 127.5 125.9

216.2 344.6 340.3 371.8

34%

BDO Sp. z o.o. ul. Post´pu 12, 02-676 Warsaw 5 22 543-1600/22 543-1601 office@bdo.pl www.bdo.pl

24.4 41.0 43.0 40.1

29.3 51.5 51.6 50.2

WND WND

WND WND

✓ ✓

✓ ✓

WND 34.0 34.0 36.0

WND 41.0 41.0 40.0

31% 52%

7% 10%

✓ ✓

✓ ✓

Business advice

Rödl & Partner (Roedl Audit Sp. z o.o.; Roedl Outsourcing Sp. z o.o.)

7 ul. Sienna 73, 00-833 Warsaw 22 696-2800/22 696-2801 warszawa@roedl.pl, www.roedl.pl

21.5 33.9 37.9 35.8

27.4 44.7 62.2 42.5

44.9% 30.9%

1.3% 22.9%

✓ ✓

✓ ✓

Grant Thornton Fràckowiak Sp. z o.o., Sp.k. (1) Pl. Wiosny Ludów 2, 61-831 Poznaƒ 8 61 850-9200/61 850-9201 info@gtfr.pl www.grantthornton.pl

WND 23.9 25.7 23.8

WND 34.1 35.7 31.9

27% 44%

29% -

✓ ✓

Baker Tilly w Polsce ul. Hrubieszowska 2, 01-209 Warsaw 9 22 295-3000/22 295-3001 contact@bakertillypoland.eu www.bakertillypoland.eu

8.0 16.2 19.6 18.1

19.6 37.5 39.9 37.4

32% 9%

4% 55%

Grupa Kapita∏owa PKF Consult ul. Elblàska 15/17, 01-747 Warsaw 10 22 560-7650/22 560-7663 pkfconsult@pkfconsult.pl www.pkfconsult.pl

10.8 14.1 15.3 12.9

13.2 18.8 19.7 17.7

20% 55%

6.1 10.1 8.8 9.0

6.1 10.1 8.9 9.1

WND 10.0 WND WND

Extor Sp. z o.o. ul. Wyrzyska 9A, 02-455 Warsaw 13 22 266-0550/22 266-5088 info@extor.pl www.extor.pl

Selected clients

Total employees / Full time employees / Year founded in Poland

Accountants / Internationally licensed auditors / Poland-licensed auditors

Audit / Accounting

Total revenue (z∏. mln)

Tax consultancy / Other

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

Specialization

Accounting / Audit

Rank

Fee split Revenue from auditing and accounting (z∏. mln)

www.bookoflists.pl

Top local executive / Title

Business consulting; financial advice; IT consulting; effectiveness management; financial risk Asseco Poland; Getin Holding; Grupa Lotos; GTC; ING management; business risk management; abuse Bank Âlàski; Mostostal Warszawa; Tauron Polska risk management; IT risk management; European Energia; Multimedia; Netia; Poczta Polska; PERN; CEDC consultancy; transaction advice

1,585 1,394 1990

259 19 87

✓ ✓

✓ ✓

Reporting and accounting advice; advice on internal audit; audits of business processes, information systems and advice on internal control; risk management advisory; legal, tax and business advice; public subscription offer advice; financial and strategic advice for companies and public sector entities

BRE Bank; TP; PKO BP; ITI/TVN; Polska Telefonia Cyfrowa; Shell; KGHM; Kompania Piwowarska; Samsung Electronics; Volvo; Electrolux; Toyota Motor Manufacturing; RWE; Coca Cola; GlaxoSmithKline Pharmaceuticals

1,765 1,765 1990

148 70 162

Olga Grygier-Siddons

21% 37%

✓ ✓

✓ ✓

Legal, business, financial advice; risk management advisory

WND

1,289 1,149 1990

24 WND 108

Andrzej Âcis∏owski

30% 36%

✓ -

✓ ✓

Consulting; financial advice; risk management

TP; PZU; ArcelorMittal; PGNiG; Fiat; WPP

1,163 1,065 1990

23 63

Marek Metrycki

ACTION; ALTERCO; AMBRA; ARP; AVIVA; Ceramika Introducing co-partnerships into public rotation IPO; NOWA GALA; COMARCH; FAMUR; INDYKPOL; Jupiter business advice; financial advice; finance TFI; JW Construction; KDPW; KOFOLA; Kronospan; acquisition; special audits; advice for trial Laboratorium Kosmetyczne Dr. Irena Eris; PCC; proceedings; IT advice; structural funds acquisition; Petroinvest; POLNORD; Takenaka Europe; implementation of IT systems; risk management Trakcja-Tiltra; UniwersytetPROKOM; Jagielloƒski; YAWAL; X Trade advisory; IT audit; training Brokers

318 293 1991

73 1 26

André Helin

Air Liquide; Alior Bank; AXA; BNP Paribas Bank Polska; Bonduelle; Camaieu; Citroen; DM IDM; Etam; Farmacol; G+J; Hochland; K2 Internet; Konsorcjum Stali; Leclerc; Orze∏ Bia∏y; Publicis; Raiffeisen Investment; Sofrecom; Swissmed

169 164 1992

51 4 13

Michel Kiviatkowski

Legal and tax advisory services; business consulting; IT consulting; training; translation services; HR consulting

WND

289 283 1992

43 2 17

✓ ✓

Economic advice

PBG; MNI; Koelner; Alchemia; Komputronik; LPP; Monini Polska; RWE Dea Polska; Polkomtel; Estneti Osaühing Oddzia∏ w Polsce; Polski oddzia∏ Nordic Gaming; Dutchmed PL

225 225 1993

65 30

Cecylia Pol; Tomasz Wróblewski

✓ ✓

✓ ✓

Services for public limited companies; initial public offerings; due diligence; management consulting; economic and legal analysis; tax advice; payroll service outsourcing; full HR and recruitment services

PL2012; Trilux; World Courier; Samsonite; M&M Aerospace Hardware; Philips & Lite-On Digital SolutionsCorp; Lilium; North Coast; MCI Management; Grupa Caelum Development; Euromark; NFI Midas

269 254 1990

87 6 7

Steven Foster

5% 20%

✓ ✓

✓ ✓

TECH-BUD; Besic; JDSU Polska; Nutriad Polska; Financial advice; IPO prospectus issuing; debuts on ECCO; Capital Group Capital Park; Capital Group Neo BPA; NewConnect and Catalyst; accounting; training Carrefour Polska; Agencja Rozwoju Przemys∏u; Krajowa activities; structural funds; due diligence; valuations Spó∏ka Cukrowa; PKP Intercity

175 128 1993

35 25

Ewa Jakubczyk-Ca∏y

WND WND

WND WND

✓ ✓

✓ ✓

Corporate finance; HR advice

Strabag; Erbud; Union Investment; Point Park; Aberdeen; Deka Immobilien

116 94 2005

28 1 5

Krzysztof Horodko

WND 10.0 WND WND

WND WND

WND WND

✓

✓ ✓

Contract audits; HR and payroll advice; project management; due diligence; controlling; VAT tax collection

WND

100 WND 1999

WND WND WND

Raphael Vieuxmaire

4.5 8.8 7.6 5.6

4.5 8.8 7.6 5.6

95% -

5%

✓

✓

Payroll services

RGA; State Street Bank; SAD; Brunswick Marine; Kingspan Insulation; NWAI Dom Maklerski; Bruckner Polska; Eolos Polska; Hercesa Sagarbe Axial Polska; Vredestein

80 73 1994

60 -

Rafa∏ Strzelecki

System Rewident Sp. z o.o. ul. Rakowiecka 30A, 02-528 Warsaw 14 22 380-0380/22 380-0381 info@system-rewident.com.pl www.system-rewident.com.pl

3.4 7.6 6.7 6.5

4.3 7.8 7.1 6.7

61.5% 35.9%

2.6% -

✓ ✓

✓ ✓

HR and payroll; business consulting; stocktaking; training

FIS Technology Services; UBB Polska; B3System; Stopklatka; SAP Polska; CB Richard Ellis Polska; Grupa Portfolio Real Estate; Soyter; Grupa Heitman; Multico; Grupa Farmy Wiatrowe

76 73 1995

24 12

Jadwiga Szabat

Estelligence Sp. z o.o. ul. I. Krasickiego 35, 02-611 Warsaw 15 22 250-0550/22 250-0550 kontakt@estelligence.com www.estelligence.com

3.5 6.5 2.7 1.5

3.5 6.5 2.7 1.5

65% WND

WND WND

✓

-

WND

WND

53 49 2004

39 -

Agnieszka Szwedowicz

AUXILIUM SA Al. Pokoju 84, 31-564 Kraków 16 12 425-8053/12 425-9147 auxilium@auxilium.com.pl www.auxilium.com.pl

4.1 5.9 5.4 4.1

4.5 6.5 5.8 4.4

35% 56%

5% 4%

✓ ✓

✓ ✓

Stock market advice

Doradcy 24; INBOOK; Liberty Group; TELFORCEONE; INTERSPORT Polska; STI Group; ART NEW MEDIA; Positive Advisor; Odlewnie Polskie; Dom Lekarski; Unima 2000; Makolab; Cementownia WARTA; Wojskowa Agencja Mieszkaniowa; Adesso; Stomil Poznaƒ; Lamda

187 29 1995

22 136

Zofia Podhorodecka

Moore Stephens Central Audit Sp. z o.o. ul. Sienna 82, 00-815 Warsaw 17 22 652-2183/22 323-6550 biuro@centralaudit.pl www.centralaudit.pl

3.2 5.6 5.3 4.7

3.3 5.9 5.8 4.8

39% 54%

4% 3%

✓ ✓

✓ ✓

-

WND

48 42 2005

25 1 3

Janusz Bia∏ecki

Baltic Accountants and Consultants Kurt Iversen 18 Al. Wojska Polskiego 11, 01-524 Warsaw 22 869-0666/22 869-0660 contact.us@baac.com.pl, www.baac.com.pl

2.6 4.9 4.8 4.3

2.8 5.3 5.3 4.9

69% 22%

6% 3%

✓ ✓

✓ -

WND

WND

29 29 1990

17 1 3

Kurt Iversen

KPMG ul. Ch∏odna 51, 00-867 Warsaw 3 22 528-1100/22 528-1009

kpmg@kpmg.pl www.kpmg.pl

6

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

TPA Horwath (3) 11 ul. Murawa 12-18, 61-655 Poznaƒ

61 630-0500/61 630-0502 office@tpa-horwath.pl, www.tpa-horwath.pl Exco A2A Polska Sp. z o.o.

Al. Niepodleg∏oÊci 106, 02-585 Warsaw

12 22 847-6117/22 847-9193

war@exco.pl www.exco.pl

Duleep Aluwihare Managing Partner of Ernst & Young in Poland

CEO/President

Senior Partner

President

President

Partner

Liliane Preußer; Jens Jungmann; Therese Baginski Partner; Managing Partner; Expert Auditor; Partner; Expert Auditor

President; Vice President

President

President

Managing Partner

Board Member

President

President

Board Member

President

President

Director

THE LIST

JANUARY 9-15, 2012

Fee split

www.wbj.pl

Tax consultancy / Other

Audit / Accounting

Tax consultancy / M&A

Accountants / Internationally licensed auditors / Poland-licensed auditors

Top local executive / Title

2.9 4.4 5.6 5.8

3.7 6.5 7.1 7.0

33.3% 34.7%

6.3 25.7

✓ ✓

✓ ✓

Corporate finance; controlling; investment advice; valuations

Mi´dzynarodowe Targi Poznaƒskie; Agencja NieruchomoÊci Rolnych; Kopalnia W´gla Brunatnego “Konin”; Oponeo; WUPRIN˚; Wittchen; Chata Polska; PIECBIOGAZ; Totalizator Sportowy; Polskie Radio; Polskie Jad∏o; Cracow University of Economics

87 52 1989

23 35

Lidia Skud∏awska

2.7 4.3 3.1 WND

2.7 4.3 3.1 WND

70% -

10% 20%

✓

✓ -

Virtual office services; start-up support; business planning and modeling; accounting services by using customers’ IT systems; payroll and HR services; IT services (Extranet and ERP application hosting); legal advice

WND

45 45 2006

40 WND WND

Monika MartynkiewiczFrank; Claus Frank; Roy Heynlein

Grupa Gumu∏ka - Audyt Sp. z o.o. ul. Jana Matejki 4, 40-077 Katowice 21 32 790-2294/32 201-1765 audyt@gumulka.pl www.gumulka.pl

2.6 4.1 3.4 2.8

4.5 8.6 5.8 4.3

9% 39%

38% 14%

✓ ✓

✓ ✓

Evaluation; opinion polls; EU funds acquisition for project development; valuation expertise; NewConnect; Catalyst; Warsaw Stock Exchange

FM Polska; PARP; MRR; GK ZARMEN; Tauron Wytwarzanie; Krajowa Izba Gospodarcza; G∏ówny Instytut Budownictwa; Agencja Rozwoju Przemys∏u; Warsaw City Hall; ZUS FRD; GK K´ty

70 70 2004

9 1 8

Rados∏aw Gumu∏ka

Korycka, Budziak & Audytorzy Sp. z o.o. ul. Solec 22, 00-410 Warsaw 22 22 522-2390/22 522-2391 kba@kba.com.pl www.kba.com.pl

2.0 4.0 4.4 4.2

2.2 4.5 5.1 4.8

53% 37%

9% 1%

✓ ✓

✓ ✓

Accounting advisory; due diligence

Jupiter NFI; Apator; PRI Pol - Aqua; Pekao Fundusz Kapita∏owy; Roto Frank; Uniwheels Production; Gühring

27 23 1992

10 3

Ewa Orkwiszewska

FK Partner Sp. z o.o. ul. Tagore’a 3, 02-647 Warsaw 23 22 242-8511/22 242-8510 warszawa@fk-partner.pl www.fk-partner.pl

1.5 3.8 7.3 5.4

2.6 5.9 7.3 6.9

61.1% -

0.6% 38.3%

✓ ✓

✓ ✓

HR outsourcing; training; IT outsourcing; financial advice

BPH TFI; Miejskie Przedsi´biorstwo Taksówkowe; Lexmark Polska; Aptiv Solutions; Przedsi´biorstwo Miernictwa Górniczego; Grifols Polska

52 17 2002

19 WND WND

Krzysztof ¸ogiewa

WND 2.6 2.6 2.5

WND 2.7 2.9 2.8

18% 61%

7% 14%

✓ ✓

✓ ✓

Economic and financial case studies

Piekarnia Pod Telegrafem Roman Smolarski; Kopalnie i Zak∏ady Chemiczne Siarki Siarkopol; Przedsi´biorstwo Budownictwa Ogólnego Kartel; Grupa Polskie Sk∏ady Budowlane; Zak∏ady W∏ókien Chemicznych Stilon

52 23 1991

10 33

Andrzej Mucha

1.4 2.5 1.4 1.3

1.5 2.5 1.6 1.4

WND WND

WND WND

✓ ✓

✓ ✓

Verification of valuations

Idea TFI; Opoka TFI; Ipopema TFI; Noble Funds TFI

35 11 1993

10 5

Rados∏aw Âwiderski

0.9 1.8 1.5 1.3

0.9 1.8 1.5 1.3

100% -

-

✓

-

MSR/MSSF; controlling; outsourcing; shelf companies; accounting advice; HR and payroll; legal and customs services; liquidations; management reporting; accounting for EU projects

WND

23 21 2005

19 -

Monika Zaluska

Staniszewski & Richter Sp. z o.o. ul. Lwowska 10/21, 00-658 Warsaw 27 22 622-4198/22 621-2719 sr@auditors.pl www.auditors.pl

0.7 1.5 1.4 1.3

1.1 1.8 2.1 1.9

32% 51%

10% 7%

✓ ✓

✓ ✓

-

First Property Group; Ceraco Group; Polfrost; EZO; Richter Med

20 20 1993

2 2 2

Marzena Richter

Agencja Bieg∏ych Rewidentów Badex Sp. z o.o. ul. Reymonta 45, 45-072 Opole 28 77 454-5410/77 454-0898 badex@badex.com.pl www.badex.com.pl

1.4 1.3 1.6 1.6

1.5 1.4 1.7 1.6

WND WND

WND WND

✓ ✓

✓ ✓

WND

WND

30 4 1992

1 26

Adam Karcher

TBR Kowalczyk Sp.j. ul. Indiri Gandhi 11, 02-776 Warsaw 29 22 647-2002/22 644-4346 tbr@tbr.pl www.tbr.pl

0.5 0.9 0.8 0.7

0.5 0.9 0.8 0.7

100% -

-

✓

-

WND

APS; Magnolia Polska; AWT International Polska; Papilart

12 8 1997

6 -

Arkadiusz Kowalczyk

Optant Sp. z o.o. ul. Berezyƒska 39, 03-908 Warsaw 30 22 617-2233/22 616-2487 biuro@optant.com.pl www.optant.com.pl

0.4 0.8 0.8 0.8

0.4 0.8 0.8 0.8

99% -

1%

✓

✓

-

Fleishman Hillard; Vivarto; Fastpoland; Apli Polska; Navitor

8 8 2004

5 -

¸ukasz Kaliƒski

THOMAS Sp. z o.o. ul. Cicha 5, 00-353 Warsaw 31 22 862-8800/22 862-8810 thomas@thomas.pl www.thomas.pl

0.3 0.6 0.6 1.2

0.4 0.9 0.9 1.3

WND WND

WND WND

✓

✓ ✓

WND

WND

6 4 1993

3 -

Tomasz Wikliƒski

ANG Poland Sp. z o.o. ul. Z∏ota 59, 00-120 Warsaw NR 22 222-3355/22 222-3366 asbpoland@asbpoland.com www.asbpoland.com

WND WND WND WND

WND WND WND WND

WND WND

WND WND

✓

-

Shelf companies; back-office services; administration services

WND

WND WND 2008

WND WND WND

Przemys∏aw Oleksy

Calan ul. Ch∏odna 29, 00-867 Warsaw NR 22 455-2555/22 455-2666 info@calan.pl www.calan.pl

WND WND WND WND

WND WND WND WND

WND WND

WND WND

✓

✓ ✓

WND

WND

124 115 1997

WND 1 6

Process Solutions Sp. z o.o.

Al. Jerozolimskie 81, 02-001 Warsaw NR 22 695-0295/22 695-0299 info-pl@ps-bpo.com www.ps-bpo.com

WND WND WND WND

WND WND WND WND

80% -

20%

✓

-

Bookkeeping and tax compliance; statutory and international reporting; HR and payroll; fiscal representation; start-up support; business planning and modeling; corporate administration

British Telecom; Caterpillar; Gefco; Hutton Energy; Interserve; Toro; Turbomach; WizzAir

20 20 2007

18 1

Tomasz Tàkiel

TMF Poland Sp. z o.o.

Pl. Pi∏sudskiego 1, 00-078 Warsaw NR 22 456-4500/22 456-4599 poland@tmf-group.com www.tmf-group.com

WND WND WND WND

WND WND WND WND

70% -

30%

✓

-

HR and payroll; domiciliary and management services; corporate secretarial services (including shelf companies); banking services; international VAT registration; VAT recovery for non-Polish businesses; fiscal representation for non-EU businesses; structured finance services

WND

102 102 1996

62 -

Miko∏aj Pluciƒski; Isidro Peralta Pena, Juraj Gerzeni

Trinity Corporate Services Sp. z o.o.

Al. Jerozolimskie 56C, 00-803 Warsaw NR 22 379-9440/22 379-9441 trinity@trinitycs.com www.trinitycs.com

WND WND WND WND

WND WND WND WND

70% -

HR and payroll; management reporting; market entry; corporate secretary; domicile address; shelf companies & SPVs; copartnership registration; liquidations; special projects; asset valuation

WND

181 173 2004

WND 2 -

Thomas Ravensdale

Rank

Accounting / Audit

Specialization

21

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

Revenue from auditing and accounting (z∏. mln)

Total revenue (z∏. mln)

1st half of 2011 / 2010 / 2009 / 2008

Morison Finansista Audit Sp. z o.o. ul. G∏ówna 6, 61-005 Poznaƒ 19 61 654-4102/61 875-2950 biuro@morison.pl www.morison.pl getsix Group ul. Szwedzka 5, 55-040 Bielany Wroc∏awskie 20 71 388-1300/71 388-1310 office@getsix.pl www.getsix.pl

Zespó∏ Us∏ug Finansowo-Ksi´gowych BilansServis Sp. z o.o. Grupa Finans-Servis ul. Zagnaƒska 84, 25-528 Kielce 24 41 368-6669/41 368-6070 audyt@bilans-servis.com.pl www.bilans-servis.com.pl Mac Auditor Sp. z o.o. ul. Obrze˝na 5, 02-691 Warsaw 25 22 649-2765/22 649-2765 macauditor@macauditor.pl www.macauditor.pl MK CONSULTING Sp. z o.o., Sp.k. ul. Mariensztat 8, 00-302 Warsaw 26 22 538-9160/22 538-9161

mk@mkconsulting.pl www.mkconsulting.pl

30%

✓

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

Footnotes: (1) Financial year: July 1-June 30; (2) Financial year: September 1-August 31; (3) TPA Horwath consists of TPA Horwath Accounting Sp. z o.o. and TPA Horwath Horodko Audit Sp. z o.o.

-

Other

Selected clients

Total employees / Full time employees / Year founded in Poland

President

Partners

President

President

President

President

President

President

Board Member

President

Managing Partner

Managing Partner

President

Managing Director

Arnaud Tual Managing Partner

Manager

President; Board Members

CEO

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

22

LIFESTYLE

www.wbj.pl

JANUARY 9-15, 2012

Performance

Acrobatic extravaganza Cirque du Soleil January 19-25, 8 pm Ergo Arena ul. Gospody Gdaƒsk

The Australian Pink Floyd Show

the Super Bowl. However, despite performing for more than 100 million people across the globe, this is Cirque du Soleil’s first visit to Poland.

Tickets for the event are priced from z∏.125 for adults DI and z∏.100 for children.

For more information log on to ergoarena.pl

COURTESY OF WIKIMEDIA COMMONS

Describing its own performances as a “dramatic mix of circus arts and street entertainment,” Cirque du Soleil has been entertaining crowds

with daredevil stunts and circus acts for more than 30 years.

Founded by Guy Laliberté and other street artists in Montreal, Canada, the company now employs more than 1,200 artists and has performed at major events including the Academy Awards and

Concert

The Australian Pink Floyd Show January 21, 8 pm Torwar ul. ¸azienkowska 6a Warsaw Since being formed in 1988 by original members Steve Mac and Jason Crawford, The Australian Pink Floyd Show (TAPFS) has gone on to become the foremost Pink

Floyd tribute act in the world, and the only act actually endorsed by the original group.

Pink Floyd guitarist David Gilmour even had the band play at his 50th birthday and when asked to rate them he remarked, “In fact, they are really very, very good.”

The group has sold more than three million tickets worldwide so far and has played at

COURTESY OF WIKIMEDIA COMMONS

Shine on you crazy tribute numerous events and venues including the Glastonbury Festival and the Royal Albert Hall.

The band’s show in Warsaw will be the third of four consecutive nights in Poland, with TAPFS also set to appear in Wroc∏aw, Katowice and Poznaƒ as part of the “Exposed in the light” DI tour.

For more information log on to torwar.cos.pl

Opera

A Mozart masterpiece The Marriage of Figaro (Le Nozze di Figaro) January 14 National Theater Pl. Teatralny Warsaw

Cre`me de la cre`me

Amber Room Al. Ujazdowskie 13 kprb.pl/amber There are few restaurants in Warsaw where you can eat among the country’s movers and shakers and there are even fewer where you can do so without making a deep hole in your pocket. But Amber Room, located in the historical Sobaƒski Palace on Aleje Ujazdowskie, is one such place.

The restaurant draws its distinguished clientele from the surrounding embassies, the nearby parliament and the 400 members of the exclusive Polish Business Roundtable club, which owns Amber Room.

Founded by the late Polish businessman and media mogul Jan Wejchert, the club’s restaurant, which once served members only, was opened to the public in 2009.

With a brasserie and several meeting rooms closed to the public, members can still maintain their privacy while other visitors can now enjoy

surprisingly reasonable price, for lunch at least.

During the week Amber Room offers a three-course lunch menu, which changes daily, for just z∏.79.

And judging by the homely Ukrainian borscht, the fresh halibut served with avocado and tomato salsa and the decadent meringue toped with whipped cream and cherry jelly, the food is still of the highest quality, despite its moderate price tag.

First performed in Vienna in 1786, Wolfgang Amadeus

Mozart’s masterful opera buffa is a continuation of the story of the “Barber of Seville,” and tells the tale of a single day of madness in the palace of Count Almaviva.

This interpretation will see

famed director Keith Warner produce his first Mozart opera after making his name producing a number of Wagner’s most famous compositions.

DI

For more information, log on to teatrwielki.pl

Media patronage

President of the European Parliament Jerzy Buzek receives AmCham Award

Alice Trudelle

EP President Buzek was honored for developing entrepreneurship and a free market economy in Poland

Reservations: 22 523 66 64, recepcja.palac@twe.com.pl Jan Wejchert

Amber Room

COURTESY OF AMBER ROOM

WBJ’s restaurant review feature

the luxurious atmosphere and elegant cuisine of the Amber Room restaurant.

Chef Robert Skubisz’s menu is Polish “with a modern twist,” and greatly influenced by seasonal and local produce.

The restaurant also bakes its own bread, as well as sending a driver to get fresh fish from the Mazurian Lake District or Baltic Sea several times a week.

While the quality of the food and service is good enough to satisfy the restaurant’s high-profile guests (which recently included the king of Sweden and the Polish prime minister), it comes at a

Cirque du Soleil

At the end of December, the American Chamber of Commerce in Poland awarded the President of the European Parliament Jerzy Buzek for his contribution in developing Poland’s entrepreneurship and a free market economy.

When presenting the AmCham Award, the chairman of the American Chamber of Commerce, Joseph Wancer, said that Mr Buzek has combined his passion and skills to serve Poland.

“We are proud to honor Professor Jerzy Buzek with our award in recognition of the significant role he played in the transformation of Poland and his exceptional accomplishments on political, social and scientific grounds,” said Mr Wancer.

Upon receiving the award, Mr Buzek said he hoped that the ties between the US and Poland grow stronger.

“The United States of America is the home of modern democracy and a second motherland to millions of Poles. Those two simple facts made it clear that when we tore down the Iron Curtain, our two countries were swiftly connected by strong economic and political ties,” said Mr Buzek.

He added, “the award I’m receiving tonight is a great honor. I take this award not only as an acknowledgment of my work, but also as an inspiration for future tasks.”

Mr Buzek posed for pictures and talked to AmCham members, guests and journalists after the official part of the ceremony.

The AmCham Award has been given out by the Chamber of Commerce since 2003. Last year’s recipient was Professor Leszek Balcerowicz, a former Finance Minister and former president of the National Bank of Poland. ●

LAST WORD

JANUARY 9-15, 2012

www.wbj.pl

23

Tech Eye

Of mice and man lip revealed what that price point is.

Still, OLED is clearly the new hotness. It might also be the new delicateness – LG’s 55-incher is just four mm thick and weighs a meager 7.5 kg, suggesting it may be more fragile than its lower-tech counterparts and easier to tip over. Also, it will definitely make you look fat.

CES 2012 will also mark the debut of Wicked Audio’s Solus headphones (wickedaudio.com), which are being touted as “aesthetically

COURTESY OF SHOGUN BROS

organic light emitting diode (OLED) technology – which boasts smaller displays, faster response times and more brilliant colors than regular LED TVs – is going to shine this year.

Of course it’s not the first time we’ve heard that (that’s right, CES 2009, we’re looking at you), but it looks like some big companies are betting on OLED. Like LG (lg.com). The South Korean tech giant is debuting the “world’s largest OLED TV” at CES. We have to admit, with a strapping 55-inches of virile display area, this is a dauntingly well-endowed TV. Moreover, LG claims the device will generate “the most natural colors of any TV set at a much lower price point than could have been achieved using a standard manufacturing process.” But before you get too excited, keep in mind LG hasn’t COURTESY OF WICKED AUDIO

our upper lip.

Waking up with massive hangover and a tiny mammal attached to your face is no way to start a morning, let alone a new year.

But here’s the thing – after some aspirin, a nibble of cheese (for each of us), and a large dollop of depilatory cream, Techeye started thinking.

Aside from a bruised pride and the awkward fact that a (now furless) pygmy mouse has developed amorous feelings for our lip, nothing bad happened. And 2012 is quickly starting to look up. The Consumer Electronics Show starts this week, after all.

Judging by the pre-show press, COURTESY OF LG

Techeye likes to ring in the new year with panache – zany crime sprees, gratuitous consumption of riboflavin, masterpieces of debauchery that would scandalize Bacchus himself, things like that. And, as the old saying goes: “the more goats, the better.”

To our everlasting shame, 2012 began with no goats and a distinct lack of panache. In fact, we didn’t even last until midnight, having fallen asleep while an acquaintance described his attempts to breed a cactus that smells like herring. Then it got worse: to ensure that Techeye would never forget this ignominious start to the new year, some “friends” glued an African pygmy mouse to

appealing” headphones with the “most impeccable sound yet.” They have a DJ switch, allowing you to turn the sound off in one or the other

ear if you’re into that sort of thing.

Price: $100.

Then there’s the Chameleon X-1 wireless gamepad mouse from Shogun Bros (shogunbros.com).

This actually came out last year, but the company is hawking new gray and white versions (not pictured) at CES. The Chameleon is a jack-of-allgadgets, but master of none. At first glance it’s a regular old mouse, but flip it over and it’s suddenly an odd little gamepad. If you’re feeling frisky you can even use it as a remote control. But when it comes down to it, the Chameleon X-1 is adequate but unexceptional in all of its roles.

Shogun Bros’ quirky marketing technique, on the other hand, is best described as exceptional but not quite adequate. “Sophisticed” [sic] Norway Nordic chip system? Check.

Three million times switch press test? Check. One press change mode? Check, baby.

Anyway, if you’re interested in a gadget that’s clearly suffering an identity crisis, you can buy the Chameleon on Amazon for $60. It’s not the greatest mouse we’ve ever seen, but on the plus side it’s unlikely to befoul anyone’s face. ●

Ever depilated a tiny mammal? Let us know: techeye.wbj@gmail.com

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

Galeria 022, DAP, Lufcik Królikarnia National ul. Mazowiecka 11a Gallery www.owzpap.pl ul. Pu∏awska 113a www.krolikarnia.mnw.art.

Galeria 65 pl ul. Bema 65 www.galeria65.com Le Guern Gallery ul. Widok 8, Galeria Appendix 2 www.leguern.pl (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglo sci.art.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl

National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl

Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl

Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl

Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Pracownia Galeria Wilanów Palace ul. Emilii Plater 14 Museum and Wilanów www.pracowniagaleria.pl Poster Museum ul. St Kostki Potockiego Rempex Art and 10/16 Auction House www.milanow-palac.pl ul. Karowa 31 www.postermuseum.pl www.rempex.com.pl Royal Castle Pl. Zamkowy 4 www.zamekkrolewski.com.pl

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

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