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A Polish film has been nominated for an Oscar

The president promoted Poland in Davos 21

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WWW.WBJ.PL

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The National Stadium got the goahead to hold its first event

VOLUME 17, NUMBER 4 • JAN 30 – FEB 5, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

Since 1994 . Poland’s only business weekly in English

Hacked

COURTESY OF PR PREMIUM

Lokale Immobilia

The storm over ACTA and the vulnerability of Polish websites

3, 11, 12-13

• Z∏ota 44 ruling • UBM and Immofinanz • New Warsaw skyscraper

Kidnapped

COURTESY OF THE KATOWICE POLICE

15-18

Poland searches for a six-month-old ripped from her stroller 2, 11

Still growing strong Poland’s GDP growth for 2011 beats forecasts 9

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Interview . . . . . . . . . . . . . . . . . . . . . .8 Finance & Economics . . . . . . . . . . .9 Opinion & Analysis . . . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . . .14-17 The List . . . . . . . . . . . . . . . . . . .18-19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Oil embargo

Turkish delight

The EU has approved action against Iran – but will Iran act first?

Turkish Airlines has confirmed its interest in Poland’s national carrier

3

5


NEWS

www.wbj.pl

Croatians vote for EU accession In a referendum on January 22, over twothirds of voters in Croatia said yes to their country joining the European Union. Croatia is due to accede to the bloc in July 2013 provided all current member states ratify the country’s accession agreement. Croatia will become the EU’s 28th member. “This is an historic decision … possibly a turning point in our history,” said Croatia’s Prime Minister Zoran Milanoviç. (See Opinion, p. 10.) ●

z∏.1.2 billion was the amount spent on advertising by Polish companies in 2011.

3% is the predicted rate at which Poland's GDP will grow this year, according to Bank of America Merrill Lynch.

z∏.1 billion is how much Poles are expected to spend on computer games in 2012.

Former deputy speaker of the Sejm and current Civic Platform MP Stefan Niesio∏owski explaining why he supports the Polish government's ratification of the controversial ACTA treaty, which is intended to protect intellectual property rights

Figures in focus Life's a beach, for some Estimated percentage change in the number of total holiday trips made by residents, 2011 compared with 2010, selected EU27 countries

35 30 25 20 15 10 5 0 -5 -10 -15 -20

The Republican race rolls on This week on WBJ.pl you’ll find a photo essay on the continuing race for the Republican nomination for US president. See original photos and reporting on the campaigns of Newt Gingrich, Ron Paul, Mitt Romney and Rick Santorum.

DATELINE

February 3-5

MTT WROCLAW 2012

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. Hala Stulecia, Wroc∏aw mttwroclaw.pl/en

Location:

Web:

known artists including some “interesting debuts,” according to organizers. DESA Unicum, ul. Marsza∏kowska 34-50, Warsaw desa.pl/

9

JEWELRY AUCTION

Event:

7

BRITISH-POLISH PPP FORUM

Event:

Web:

14

SHOPPING CENTER BUSINESS FORUM

Web:

Entitled “Wroc∏aw for partnership – experience, plans and prospects for cooperation” this event will feature several discussion panels on public-private partnership in Poland and around the world. Hosted by economist Robert Gwiazdowski. Hala Stulecia, Wroclaw ppp.gov.pl

More than 70 unique items from past eras, among them rings with diamonds and “timeless art deco jewelry,” say organizers. DESA Unicum, ul. Marsza∏kowska 34-50, Warsaw desa.pl/

7

YOUNG ART AUCTION

Location:

Event:

An auction of works by young and well-

Web:

Location: Web:

Location:

Location:

Event:

Now in its 14th edition, this event is an opportunity to meet tenants and developers of commercial real estate. The organizer provides access to web-based business appointments between participants. Hilton Warsaw Hotel scbf2012.retailnet.pl

* ly* Ita

an y Po lan d Est on ia

EU

Ge rm

m

*Highest in EU27 ** Lowest in EU27

lgiu

On WBJ.pl

“The internet is a jungle when it comes to copyright.”

Be

Adam Zdrodowski

Quote of the Week

ng ary

missing persons has been set up to deal with the case. Wellknown Polish private detective Krzysztof Rutkowski is also involved in the search efforts. Reward money has been offered by the police and the local authorities to those who would provide information on the missing baby. A number of companies and individuals have also donated money to the cause. Despite the incentives and calls for help from both Magda’s family and the police, at press time there had been no reports of any eye witnesses who would have seen the kidnapping or would have information about the circumstances of the incident.

Hu

the case was a difficult one as there was little data and no detailed identity profile of the alleged perpetrator could be composed. The mother was not able to give any specific description of the man who had followed her and is suspected to have kidnapped the baby. Nor did the footage from surveillance cameras prove to be of any real help. The motive for the kidnapping remains unknown, with no one having so far contacted Magda’s parents and demanded ransom. The family did not have any enemies and was not in debt, the father of the missing girl told Polish media. A special police task force composed of officers with ample experience in finding

Lat via

Many were shocked last week by the story of Magda, a sixmonth-old baby who was apparently kidnapped from her stroller last Tuesday while out with her mother in the center of Sosnowiec, in Silesia voivodship. According to the mother’s report, she had been followed by a tall hooded man before the incident took place. All she remembers is that she was then assailed from behind and left unconscious for some time; after regaining consciousness, she found out that her baby was gone. A police hunt for the missing baby kicked off immediately but as WBJ went to press no trace of Magda had been found. The police were saying

vak ia

Poland’s state gas monopoly PGNiG has announced it will cooperate with fellow state-owned firms, energy producers PGE and Tauron, as well as mining giant KGHM on exploration and development of shale gas resources in Poland. Exploration for shale gas is a top priority for PGNiG, the firm said in a statement, and it is “open to all initiatives allowing it to intensify work in that area.”

is the number of foreign tourists expected to visit Poland during this summer's European soccer championships.

lic*

State firms to work together on shale gas

1 million

Slo

Residents of KoÊcierzyna, a small town in northern Poland, were shocked last week to see blood streaming out from under manhole covers. The police were alerted and later explained that the incident was due to a blocked drain at a nearby meat-processing plant.

Baby Magda

ub

Blood in Polish streets

Numbers in the News

Re p

Last Friday police arrested a 22-year-old man from Wroc∏aw on charges of hacking the prime minister’s website, TVN24 reported. The arrest came after a group of hackers called the “Happyninjas” revealed the personal details of the man, ¸ukasz S., who they said was behind the hacking of several government websites, including that of the prime minister. ¸ukasz S., whose full name cannot be revealed for legal reasons, was allegedly protesting against the government’s plan to sign the controversial ACTA treaty.

IN THE SPOTLIGHT

Cz ech

Polish ACTA hacker arrested

JANUARY 30 – FEBRUARY 5, 2012

COURTESY OF THE KATOWICE POLICE

2

Source: Eurostat

Company index Alpine ....................................................3 KGHM ................................................2, 6 Animex ..................................................6 Lot ..........................................................5 Antal International ................................8 Lubelski W´giel Bogdanka....................5 APA Kury∏owicz & Associates ............14 LuminoGlow Lingerie ..........................23 Biazet ..................................................15 Morliny ..................................................6 BRE ......................................................20 BZ WBK ............................................9, 14 Oknoplast ............................................21 Campofrio ..............................................6 Opek ......................................................5 Ceva Logistics ......................................15 Orco Property ......................................17 Colliers International ..........................15 Orlen ....................................................12 Credit Suisse..........................................4 PGNiG ....................................................2 Dago ....................................................14 PKO BP ................................................20 Deloitte ..................................................6 Deutsche Bank ......................................4 PKP ......................................................14 DHL ........................................................5 Pramerica ............................................14 Disney ..................................................11 Quadra FNX............................................6 DSV Group ............................................15 Tauron ....................................................2 EMI ......................................................11 TNT ........................................................5 Enea ......................................................5 Turkish Airlines......................................5 FedEx......................................................5 GLS ........................................................5 UBM......................................................15 Hardwick Housewares ........................23 Universal ..............................................11 HB Reavis ............................................14 UPS ........................................................5 Helios ..................................................14 Valkee ..................................................23 IKEA......................................................17 Warsaw Stock Exchange ......................3 Immofinanz Group ..............................15 W∏odarzewska......................................14 ING ........................................................4 Jones Lang LaSalle ................14, 15, 17 X-Trade Brokers ..............................9, 20 JP Morgan..............................................4 Zdrojowa Invest....................................17


NEWS

JANUARY 30 – FEBRUARY 5, 2012

www.wbj.pl

Intellectual property rights

Poland signs ACTA treaty despite outcry, cyber attacks Poland signed the international copyright treaty known as the Anti-Counterfeiting Trade Agreement (ACTA) last Thursday despite nationwide protests, the hacking of government websites and the threat of cyber warfare by internet users who oppose the deal. Critics of ACTA argue that the bill, which aims to create international standards for protecting intellectual property, will stifle freedom of expression on the internet, pointing to a clause in the treaty which suggests that internet service providers (ISPs) would be obliged to give up data about users who were being accused of copyright infringement.

Human Rights. Protests against Poland’s planned signing of the ACTA treaty were held in a number of cities across the country last week, with the biggest being held in Kraków, where over 15,000 people turned up, many holding placards with slogans such as “stop censorship” and “we want freedom of speech.” Moreover, messages were sent to the government via Twitter from user@AnonymousWiki, who claimed responsibility for the hacking of the government websites and warned that there would be further attacks if Poland signed the ACTA treaty. User@AnonymousWiki also claimed that it had obtained “leaked documentations on many Poland officials,” and that if the treaty were passed it would leak those documents.

by hackers. The technique works by overwhelming a website by directing streams of bogus traffic to it. At first government spokesperson Pawe∏ GraÊ attempted to deny that the increased traffic was due to attacks. However, after unauthorized images were posted on the websites of the prime minister and the Ministry of Defense, it was clear the government was experiencing a cyber attack (see Cover Story, pp. 12-13). NGOs in Poland, meanwhile, have complained that the government did not consult them on the issue of signing the treaty, despite earlier promises to do so. “Last May we met the prime minister. He assured us that we would be consulted regarding ACTA, but unfortunately that never happened,” said Dominika Bychawska-Siniarska, head of the Observatory for Media Freedom in Poland at the Helsinki Foundation for

A1 highway doubts There is a strong likelihood that a segment of the A1 highway will not be finished before the start of the Euro 2012 soccer championships because of damage to a bridge, reported Dziennik Gazeta Prawna. Austrian consortium Alpine, which is building the 20km segment, noticed cracks in a critical segment of the bridge and says that despite repair work, the damage has not been fixed. But according to Poland’s roads authority and A1 investor GDDKiA, the bridge remains safe.

WIG20 rises 2.3%

COURTESY OF FLICKER / KPRM

A takeover of government websites and protests across the country were not enough to stop Poland from signing the controversial agreement

3

EU-Iran relations

The Warsaw Stock Exchange’s blue-chip WIG20 index rose by 2.33% last Thursday, the highest increase since November, reported Parkiet. At one point during the session, the index had even gained 3.3%. The gains were largely the result of news that ratings agency Fitch could upgrade Poland’s credit rating. Another factor impacting the markets was positive news from the US, where better financial results from listed companies, as well as an increase in demand for durable goods, were recorded.

Iran, EU in power struggle over oil

Polish food exports a hit

Cyber attacks Starting on Sunday, January 22, the websites of the prime minister, parliament and other government offices were unreachable or sluggish, the hallmarks of a distributed denial-of-service attack (DDoS)

But Prime Minister Tusk said the government “would not submit to blackmail” and that the treaty would be signed. He added, though, that “only when the government is sure that Polish law guarantees freedom on the internet, will we send the bill for ratification

Last week showed that increasing pressure on Iran could prove a double-edged sword for the EU, especially its southern members. On Monday, EU foreign ministers announced they had

COURTESY OF WIKIMEDIA COMMONS

The EU announced it would ban imports of Iranian oil starting July 1, but Iran retorted it could cut supplies much earlier

A decision has been made

Iranian President Mahmoud Ahmadinejad said the West “needs” Iran

approved a package of sanctions on Iran, including a full ban on Iranian oil exports, starting on July 1. The block imports 20 percent of Iran’s oil exports. In a statement issued by the White House, US President Obama acclaimed “actions by our partners in the EU to impose additional sanctions on Iran in response to the regime’s continuing failure to fulfill its international obligations regarding its nuclear program.” But last Thursday Iran replied that it could stop exports much earlier, thus undercutting the six-month buffer time designed to give EU countries such as Greece, Italy and Spain the opportunity to seek new oil contracts. The three countries, which are already facing financial strain, are the biggest importers of Iranian oil inside the EU. “It is the West that needs Iran and the Iranian nation will not lose from the sanctions,” Iranian President Mahmoud Ahmadinejad said on Thursday in a speech broad-

Mr Tusk said he “would not submit to blackmail” to parliament.” The treaty would also need to be signed by the president before becoming law. “ACTA was accepted by countries who, like it or not, are the backbone of freedom in the whole world,” said the prime minister, pointing to the EU, the US, Australia, New Zealand, Canada, South Korea and Mexico as examples. As WBJ went to press, protests were continuing all over

cast on state radio. As WBJ went to press, the Iranian parliament was scheduled to discuss whether to immediately stop oil sales to EU countries on Sunday. Tension has been mounting between the US and Iran, and several experts warn that military confrontation between the two states is now a possibility. Some take the fact that French and UK warships accompanied a US aircraft carrier to the Gulf on January 22, despite Iranian warnings, as an indication that key US allies in Europe could also be dragged into a potential conflict. Following the adoption of EU sanctions against Iran, German Chancellor Angela Merkel, UK Prime Minister David Cameron and French President Nicolas Sarkozy wrote in a joint statement, “We have no quarrel with the Iranian people. But … we will not accept Iran acquiring a nuclear weapon.” Poland, which imports most of its oil from Russia, has so far kept a low profile

Poland, but no major disturbances were reported on official websites. According to a SMG KRC poll released on Friday, 64 percent of people polled disapproved of the government’s decision to sign ACTA, and 21 percent approved. Meanwhile, 60 percent said they did not think ACTA would help fight piracy online, and 29 percent said they though it would. Remi Adekoya

on the issue. In mid-January Roman Kuêniar, an advisor to President Bronis∏aw Komorowski, told Polska The Times that Poland would not be actively involved in the “unlikely” event of a conflict in Iran, and that sending Polish troops to Iran was out of the question. Alice Trudelle

In the first 11 months of 2011, Polish companies sold €13.8 billion worth of food products abroad, according to data from the Economy Ministry. That is an increase of 12% from the same period of 2010 and a three-fold increase from 2004, the year when Poland joined the EU. ●

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4

NEWS

www.wbj.pl

JANUARY 30 – FEBRUARY 5, 2012

Oscar nominations

“In Darkness” has been nominated for best foreign-language film at the 84th Academy Awards Acclaimed Polish director Agnieszka Holland’s latest film “In Darkness” has been nominated as one of five movies that could win the Oscar for best foreign-language film at this year’s awards ceremony, scheduled to take place on February 26. The film, which is based in part on Robert Marshall’s book “In the Sewers of Lvov,” tells

the true story of Leopold Socha, a Polish former criminal who risked his own life to shelter Jewish citizens in Lviv (now a city in Ukraine, but then a part of Poland) during its occupation by the Nazis. The plot is also based in part on Krystyna Chiger’s autobiographical account “The Girl in the Green Sweater” which recalls the 14 months Ms Chiger and her family spent in the city’s sewers after being rescued by Mr Socha in May 1943. After viewing the movie for the first time, Ms Chiger told

Newsweek Polska that “In this little girl sitting in the sewers, I saw myself. Everything came back … I felt like I went back to the darkness, to the sewers, to the stench.” This is the second time one of Ms Holland’s films has been nominated for best foreign-language Oscar, following the nomination of “Angry Harvest” in 1985. That film told the story of a Jewish family during Poland’s wartime occupation by the Nazis. The director’s Jewish grandparents on her father’s

side died in the Warsaw ghetto. Other notable films by Ms Holland include “The Secret Garden” and “Total Eclipse,” while she also directed three episodes of the acclaimed American TV series “The Wire.” Other films to make it on to the foreign-language shortlist for the 84th Academy Awards are: Iranian drama “A Separation,” Belgian cattle farming film “Bullhead,” Canada’s “Monsieur Lazhar,” and the Israeli film “Footnote.”

COURTESY OF SONY PICTURES CLASSICS

Polish film on WWII receives Oscar nomination

David Ingham

“In Darkness” tells the true story of Leopold Socha

The World Economic Forum

President Komorowski promotes Polish interests at Davos The president said Poland stood out among EU states during a time of “weakness” Polish President Bronis∏aw Komorowski attended the Davos World Economic Forum in Switzerland last week with the goal of promoting Poland to potential investors during meetings with key businesspeople and world

leaders. At a meeting of industry leaders and representatives of financial institutions including Credit Suisse, Deutsche Bank, ING and JP Morgan on Thursday, Mr Komorowski stressed the economic, political and social stability of Poland at a time when other European countries were in both financial and political turmoil. “I said during the previous [World Economic] Forum that

Poland is a strong economy, and my optimism has been clearly confirmed: Poland’s GDP rose four percent in 2011, the budget deficit is on the decline and as many as 426 companies are now listed at the Warsaw Stock Exchange,” Mr Komorowski said. “Poland stands out positively among other EU member states and has grown stronger at a time of Europe’s weakness,” he added, also highlighting the healthy state

of the country’s banking sector. On Friday, Mr Komorowski also spoke about the planned European fiscal treaty, saying Poland would not agree to new measures if they appear detrimental to the country’s interests. However, he stressed that “The EU as a whole is not going to move forward again … if the trust of the markets, the economy and the citizens towards the EU is not rebuilt.”

German Chancellor Angela Merkel had earlier officially opened the event last Wednesday with strong words regarding the euro zone. Ms Merkel said the region currently lacks the necessary political structures to ensure the workability of the single currency. She did, however, stress her determination to protect the common European currency, but at the same time brushed aside the possibility of increas-

ing the crisis bailout fund and warned against overburdening the German economy. “We guarantee the euro, but we do not want to make a promise we cannot keep,” she said. Mr Komorowski was due to conclude his stay in Davos on Saturday with his last official engagement, a meeting with members of the local Polish-Swiss community at the Polish Museum in Rapperswil. David Ingham

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BUSINESS

JANUARY 30 – FEBRUARY 5, 2012

www.wbj.pl

5

Airlines

Investor meetings regarding the potential takeover have already taken place

the remaining shares belonging to the company’s employees. The Treasury plans to sell the carrier after Lot finishes restructuring, but the process of privatizing the airline has been ongoing for some 11 years now. Ms Kobos said the privatization is “really complicated, and we’ve spent years trying to sell the asset. But this is not a simple market. The financial situation is demanding because of the crisis and because of the airline market, as we see

identity of the second potential buyer. Magdalena Kobos, a spokesperson for the Treasury Ministry, confirmed to WBJ that talks with two investors have taken place recently. “We have two potential investors – not only Turkish Airlines – which have different communication strategies,” Ms Kobos said, adding that the unnamed company wishes to remain anonymous. The state currently owns a 93 percent stake in Lot, with

After holding informal talks in December of 2011, Turkish Airlines has formally announced its interest in buying Poland’s state-owned airline, Lot. Another player has also expressed interest in the airline, but as of yet no details have been released as to the

COURTESY OF WIKIMEDIA COMMONS

Turkish Airlines to acquire Poland’s Lot?

Turkish Airlines is the eighth-largest airline in the world a lot of consolidation in the airline industry.” “Right now, we have no special agenda, no more meetings scheduled. It will depend on the talks that took place,” she added.

Ms Kobos did specify that the Treasury would like to finish the process by the end of 2012. Turkish Airlines recently won the title of “Best Airliner in Europe” at the 2011 World

Airline Awards held by Skytrax, a UK-based consultancy firm specializing in the airline industry. The airline currently ranks as the eighth-largest in the world. Ella Pa∏ka

Courier services

FedEx to purchase Polish courier for z∏.100 million: daily The US company reportedly wants to finish the acquisition by the end of H1

COURTESY OF FEDEX

US logistics and courier services company FedEx is set to purchase Opek, a family owned Polish courier company

FedEx wants to strengthen its presence in Poland

for z∏.100 million, according to Polish daily Dziennik Gazeta Prawna. The newspaper reported that FedEx wants the Polish firm to join its international operations by the first half of 2012. The company’s owners, Henryk Opiƒski and his family, established Opek in 1994. It currently operates services throughout the country. Already, Opek handles a reported 7.2 million shipments a year, but only 0.01 percent of those are directed outside of Poland. The takeover then holds potential for FedEx to significantly strengthen the firm’s international capabilities. Opek has said in the past

Polish utility Enea’s reported public declaration of interest in buying a stake in coal miner Lubelski W´giel Bogdanka could have seriously handicapped the company’s chances of making an investment at a reasonable price, according to analysts. Enea’s deputy CEO reportedly said last week – in a statement which the company later denied was ever made – that the firm is considering investing in the coal miner in order to gain direct access to coal used for energy production. “We are considering such an idea and we are running a deep analysis of it now,” deputy CEO Krzysztof Zborowski reportedly said in an interview for TVN CNBC. “We have also thought about that before.” “This is in a study phase, but privately I think that creating a line from extraction, through production and sale, does make a lot of sense.” The majority of analysts

COURTESY OF BOGDANKA

Enea too eager to buy Bogdanka?

Bogdanka headquarters polled by Parkiet said in reference to the reported comments that public statements in which company officials express an interest in a certain investment can give the potential buyer a weaker bargaining position, thus forcing it to pay a higher price than it might

otherwise have done. Also last week Bogdanka announced that it has signed a 19-year coal supply deal worth z∏.11.2 billion with Enea. Deliveries to Enea’s planned 1,000 megawatt power block are due to start in Q1 2017. Gareth Price

that the rise of e-commerce presents a significant challenge. Cooperation with FedEx could potentially give it a leg up. Jacek Bàkowski, assistant director of sales at Opek, recently told Dziennik Gazeta Prawna that, “the e-commerce market in Poland is just beginning to take shape and it is a big challenge for shipping companies. One has to meet the needs of customers who

require quick deliveries and low prices.” He added, “This market will expand very quickly in Poland in the nearest years, up to the level that it exists in Western Europe.” As it stands, courier services in Poland cost 20 to 25 percent more than in the rest of the European Union, the daily reported. The move by FedEx to take over Opek could also

pave the way for more competitive pricing, analysts said. International courier firms that already operate on the Polish market include UPS, DHL, GLS and TNT. Some of these firms have been in Poland for close to 20 years. When contacted by WBJ, neither Opek nor FedEx could be reached for comment on the proposed deal. Ella Pa∏ka


6

BUSINESS

www.wbj.pl

JANUARY 30 – FEBRUARY 5, 2012

Emerging markets

KGHM

Deloitte: Poland ranks #2 in region for revenue opportunities

Treasury to block KGHM’s Quadra takeover?

Adapt to the market But success in emerging markets is not just a matter of companies setting up shop and selling existing goods from their home markets. Foreign companies should adapt to the market, determine customer needs, design products for the local market and make them

affordable, said Deloitte. The report found that a key ingredient to success was to establish company-owned production, service, distribution, R&D, and other operations in emerging markets “to become closer to customers and part of the local business community.” However, the most important method identified for expanding in emerging markets was organic growth, according to 60 percent of the executives surveyed. In Eastern Europe the main obstacles preventing investment include protectionist policies or government bureaucracy, the need to provide products and services that meet customer needs at affordable prices, and difficulties related to creating brand awareness in the Ella Pa∏ka market.

Headed for success Top 10 strategies for succeeding in emerging markets 1. Use local sales/service support centers 2. Design products/services specifically for emerging market country or region 3. Employ company-owned sales and/or distribution 4. Offer different value proposition for customers/consumers 5. Employ company-owned supply chain 6. Use marketing/promotional efforts to increase awareness 7. Employ local vendors to provide sales, distribution, or marketing 8. Conduct customer/consumer research locally 9. Conduct R&D locally 10. Form joint ventures with local companies Source: Deloitte “Emerging market growth strategies, practices and outlook”

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

Possible tax on copper and silver extraction On January 17, 2012 the government approved the draft Act on Tax on Extraction of Certain Minerals. The tax is to be applicable to copper and silver. Tax rates are to be established separately for one ton of extracted copper and one kilogram of extracted silver. The rates are to amount from 0.5 percent (minimum rate) up to about 35 percent (maximum rate) of the price of the metal and the final rate is to depend on the prices of copper and silver in the world markets and the gold-dollar rate. The head of the customs office is to keep the record of entrepreneurs who extract copper and silver ores and the tax is to be paid monthly. The draft act will now to be referred to the Sejm.

Certificate on arrears of the seller of an enterprise In the opinion of the Supreme Court (the resolution of January 17, 2012), upon the request of a purchaser of (a part of) an enterprise, the Social Insurance Office

should issue a certificate on the sellers’ arrears in payment of premiums connected with the business activity conducted by the seller and accrued until the date of sale of the enterprise. In such a case a consent of the party selling the enterprise is required.

New provisions to penalize illegal employment of foreigners On January 11 the first reading of the Act on Consequences of Entrusting Work to Foreigners Staying Illegally in Poland took place. The purpose of the act is to implement the EU Directive 2009/52/WE into Polish law. The major aims of the new legislation are to counteract employment of third countries’ citizens staying in Poland contrary to the law; to penalize legal persons that commit transgressions in connection with illegal employment of foreigners, but also to make it easier for illegally employed citizens of third countries to pursue claims for remuneration. The Act has been passed on for further procedural stages in the Sejm. ●

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The Treasury says it wants to conduct an analysis of the z∏.10 billion deal – but some say the state is just looking to protect its cash cow Poland’s Treasury Ministry will take a closer look at state-controlled copper miner KGHM’s plans to buy Canadian miner Quadra FNX, ministry spokesperson Magdalena Kobos told the media last week. The announcement prompted speculation that the government could move to block the planned z∏.10 billion deal. Blocking the Quadra takeover, the thinking goes, could ensure healthier dividend payments for the state further down the line due to more money being available to the firm for this purpose. The ministry, which controls KGHM through a 32 percent stake, blocked management’s plans for a z∏.3 billion share buyback earlier this month. Less money spent on a share buyback means more that can be paid out to shareholders – including the Treasury – in dividends. The government has also passed a new tax on companies that extract minerals, which will also hit KGHM hard and could bring in as much as z∏.1.8 billion to the budget in 2012. Explaining the Treasury Ministry’s decision to analyze the Quadra takeover, Ms Kobos said that the Quadra takeover was an “interesting project, which doesn’t mean it shouldn’t be thoroughly analyzed, as is [usually] done in

COURTESY OF KGHM

Strong and stable growth in emerging economies is increasing opportunities not only for existing players already operating in those markets, but for new ones as well, advisory firm Deloitte found in a report published last week. When it comes to the best opportunities, Poland ranks high – in second place, behind Russia, in the Eastern European region in terms of revenue opportunities – according to the report. In the Eastern European region, 45 percent of executives surveyed believe Poland would offer the greatest opportunities for revenue over the next three years. Russia was ranked in first place with 66 percent, while the Ukraine and the Czech Republic were the region’s third- and fourthranked countries, with 28 and 25 percent, respectively. Executives were able to choose more than one country in each region. According to the findings, emerging markets now offer more opportunity for growth than developed economies. Emerging markets are expected to account for 58 percent of growth in global GDP from

2010–2015, compared to 32 percent for the advanced economies of the G7. Companies not yet active in emerging markets identify Eastern Europe as a good choice to locate an investment, and 27 percent of European companies without emergingmarket revenues are expected to begin generating revenues from Eastern Europe and Russia over the next three years, the report said.

KGHM is one of the largest copper producers in the world transactions of such a caliber.” Ms Kobos told WBJ that the market should not “read between the lines” when it comes to the Treasury’s analysis of the takeover. She said current Treasury Minister Mikolaj Budzanowski had assumed his position four days after KGHM’s board agreed to the deal, and wanted to use the analysis to understand the specifics of the transaction. A representative of KGHM told WBJ that the copper firm “does not require any additional approval from the Polish side (government or shareholder) for the Quadra transaction to be concluded,” that the agreement signed by the two parties is a “binding offer,” and that KGHM therefore has “clear contractual obligations related to the agreement signed, to which it remains fully committed.” If the transaction were to

go through, it would be the biggest foreign takeover by a Polish firm in post-World War II Poland.

President stays Ms Kobos also denied rumors that KGHM’s president, Herbert Wirth, could be on his way out. Over the past few weeks, KGHM shareholders have replaced half of the firm’s supervisory board. Some analysts saw this as a move by Mr Budzanowski to reassert the state’s influence over the company and eventually replace Mr Wirth. But Deputy Treasury Minister Zdzis∏aw Gawlik echoed Ms Kobos’s message, telling journalists last Wednesday that the president of KGHM “has achieved much success,” and that he didn’t see why the board “would make any decision about a management change at KGHM.” Remi Adekoya

Animex to end production of beef Polish meat producer Animex is ending beef-production operations at its plant in Morliny, in the Warmiƒsko-Mazurskie voivodship, as part of a restructuring plan that will see 230 employees lose their jobs. Animex, one of Poland’s biggest producers of fresh and packaged meats, has decided to trim some of its fat, and beef was judged to be its weakest segment. “Beef proved to be an unprofitable product despite numerous attempts to keep this sector of our operations going,” said Animex spokesperson Andrzej Pawelczak. “The restructuring involves the liquidation of the Morliny beef production department, and thus a halt to the slaughter of cattle and the production of beef, which in turn requires a corresponding ad-

justment of employment levels,” he added. Animex will now concentrate on the production of pork and poultry products. The company bought the

meat production plants in Morliny in 2005 from Spanish company Campofrio. Just over 1,000 workers are employed at the facilities.

SHUTTERSTOCK

Emerging markets offer more opportunity for growth than developed markets, a new report finds

Beef is off the menu at Animex

Gareth Price


8

INTERVIEW

www.wbj.pl

JANUARY 30 – FEBRUARY 5, 2012

Business strategies

Tony Goodwin, founder, chairman and CEO of Antal International, an executive recruitment firm present in 33 different countries including Poland, talks with WBJ about the thin line between success and failure in business Following a stint in London as a chartered accountant – a career path he says he chose to please his mother – Tony Goodwin swapped over to recruitment, launching his own company, Antal International, in 1993. Antal now has a presence in 33 different countries and is firmly established in the devel-

oping markets of Central and Eastern Europe. However, the early stages were by no means a walk in the park, according to the firm’s founder and CEO. “With it came a list of business mistakes longer than the entire works of William Shakespeare,” Mr Goodwin said. Antal’s CEO has since developed something of an

interest in the reasons for success and failure in business, and spoke with WBJ about both this and his experiences of growing a business in Poland.

Commons pitfalls Through a recent survey Antal conducted of 240 business executives in Poland, it identified two major types of pitfalls that commonly face businesses in the country, although the findings could apply to most business environments. First are hazards which threaten entrepreneurs who

Antal and Poland’s recruitment market Antal International, Mr Goodman said, has developed in the Polish market by “applying global solutions locally.” “We have know-how [and] necessary tools worked out based on international cooperation and these are implemented in every country,” Mr Goodman said. But what differentiates Poland from most other markets in the region where Antal operates is that the personal characteristics of job candidates are starting to take on an increasing level of importance, Mr Goodman said. “In Poland there are a lot of great specialists and managers, so very often we have to focus on the characteristics of candidates. Skills and education is no longer a differentia-

tor for a company. In many cases the key to a successful recruitment project it the ability to find a candidate who fits perfectly to a company’s organizational culture.” The ongoing crisis, Mr Goodman added, has barely been felt by Antal Poland thus far. “Polish companies still hire a lot of specialists and managers. Our operation in Poland has rapidly developed,” he said. “In Poland there is a problem connected with deficiency of talents, so it is hard to find highly qualified candidates with experience in less popular areas of business. In case of the most desired candidates such as IT specialists or engineers, I can say that there is definitely a candidate market in Poland.” ●

are just starting out. These include laziness (57 percent ), a lack of belief in one’s own ability (43 percent) and a dearth of personal skills (43 percent). However, says Mr Goodwin, the single biggest threat to success in the early stages is a loss of the emotion that first inspired an entrepreneur. “The most common pitfall is a loss of passion to do business,” he said. The second group identified by Antal involves perils that result from success. “The most common pitfall in this group is conceit. Sometimes we start to think that we are so successful, we are so clever, and we have excellent intuition. This is the first step to failure,” said Mr Goodwin. “What threatens as well, is disrespect to our competitors. We need to remember that Poland is still a developing market and one moment of lack of control can [mean] that we will be a step or more behind our rivals.” In his book, “How they blew it,” Mr Goodwin highlights how sudden the fall from grace can be in business, pointing to examples of entrepreneurs who were once considered some of the most success-

COURTESY OF ANTAL INTERNATIONAL

How not to blow it

Tony Goodwin says that in Poland, a single slip-up can see a business lose ground to a rival ful in their fields, such as Christopher Foster, Reuben Singh and Mark Goldberg, who – almost overnight – became symbols of business catastrophe. At the moment an entrepreneur starts to become hubristic, they need to “focus on the basics and remember about [them] each day,” Mr Goodwin said.

Adapt to succeed In today’s environment, Mr Goodwin believes the ability to adapt is the key to achieving success in Poland, with this criterion considered vital to success by around half of the respondents to Antal’s survey. We currently live “in a huge communication mess – we have lots of information which

we have to analyze very quickly and make rapid decisions. [A very small] delay can provide catastrophic effects,” he said. Unsurprisingly, a strong and effective leader was also considered vital. “Besides determination, intelligence or creativity, a very important soft skill in a leader is an ability to effectively cooperate with a team,” Mr Goodwin said, explaining that an effective leader should listen to people, observe the market and be vigilant at all times. “I used to say that regardless of our market position we need to concentrate on the ‘main day’ because the basic, common activities often are crucial and they affect our success or failure,” he added. Gareth Price


FINANCE & ECONOMICS

JANUARY 30 – FEBRUARY 5, 2012

Economic growth

GDP growth for 2011 beats forecasts The Polish economy grew at a rate of 4.3 percent last year, beating most analysts’ predictions Preliminary data released last week by Poland’s Central Statistical Office (GUS) showed that Poland’s economy grew by 4.3 percent last year, a result equal to or better than most analysts’ forecasts. The result also beats Poland’s growth of 3.9 percent in 2010. Gross fixed capital formation grew by 8.7 percent in 2011, while domestic demand rose 3.8 percent, according to the GUS data. “Flash data on GDP growth in 2011 were in line with our estimates and above market expectations. It means that in Q4 the pace of economic growth stayed above 4 percent,” BZ WBK said in a statement commenting the results. It also noted that private consumption grew by 3.1 percent in 2011, indicating clearly a deceleration in last three months of the previous year. But on the other hand, investment growth surprised on the upside as it accelerated by

over 8 percent, with BZ WBK’s estimates showing it grew over 10 percent in Q4 2011. Prime Minister Donald Tusk expressed his satisfaction with the results. “I am very happy … the result is better than expected but very close to what we had planned a year ago,” adding that the results showed Finance Minister Jacek Rostowski has correctly been interpreting the economic signals from Poland and Europe. Mr Rostowski had earlier predicted that Polish GDP would grow by more than 4 percent in 2011.

But BZ WBK analysts do not expect Poland to maintain that level of growth in 2012. “Amid tendencies observed on the labor market, we sustain our forecast of a lower pace of consumption and GDP growth (2.3 percent),” they said, adding that from the point of view of Poland’s interest ratesetting Monetary Policy Council, the released data “is not that unambiguous.” “The pace of GDP growth is high, but consumption is clearly decelerating. Thus, interest rates will probably remain stable in H1 2012,” the statement read. Remi Adekoya

Making a comeback? Poland's GDP growth in 2007-2011 8 7

6.7 *preliminary data

6 4.9 5

4.3* 3.9

4 3 1.8 2 1 %

2007

2008

2009

2010

2011 Source: GUS

Currency market

Z∏oty gaining strength The Polish currency has been making up for lost ground in recent weeks Over the past three weeks, the z∏oty has strengthened against the euro by almost 7 percent. The last week in particular gave cause for optimism regarding the Polish currency in 2012. An important piece of good news for the z∏oty was the decision by the US Federal Reserve to hold interest rates in that country at 0-0.25 percent until the end of 2014. The Fed also lowered its GDP projections for US growth in 2012, which the markets view as a possible precursor to more quantitative easing in the US. This in turn could increase inflationary pressure in the US, making other currencies, such as the z∏oty, more attractive. The Polish currency was also helped by comments from National Bank of Poland president Marek Belka, who said the bank is concerned about inflation and is prepared to hold interest rates at over 4 percent.

Delightful decline Euro-z∏oty exchange rate, over the last month

Source: stooq.com

Headline inflation came in at 4.8 percent in November 2011 and fell to 4.6 percent in December – still well above the bank’s 2.5 percent target. Partly on the back of this, and news from the US, the z∏oty strengthened to around z∏.4.25 to the euro, z∏.3.24 to the dollar and z∏.3.52 to the Swiss franc last Friday. But Przemys∏aw Kwiecieƒ, chief economist at X-Trade Brokers, thinks better-thanexpected data from Europe probably played a bigger role. “Purchasing Managers Index

readings for France and Germany showed that after a weak autumn, the beginning of the year looks more hopeful.” “In the last few weeks, the appreciation of the euro has come with the reduction in credit risk and it seems that some investors now consider Europe’s problems to be over. But there was a similar mechanism in October until it quickly turned out that the optimism was misplaced – and that situation could repeat itself again,” stated Mr Kwiecieƒ. Remi Adekoya

www.wbj.pl

9


10

OPINION & ANALYSIS

www.wbj.pl

JANUARY 30 – FEBRUARY 5, 2012

Find baby Magda

COURTESY OF THE KATOWICE POLICE

D

ear readers, it is rare that I take the opportunity as editorin-chief to address you directly. As a newspaper, we like to keep to the standard Western newspaper profile, with simple news and opinion sections, and no weekly comment from the editor, which many weekly magazines have. This week we break from that tradition for a very important reason – a missing little girl. Six-month-old Magda was kidnapped on Tuesday, and so far no trace of her has been found. Some might ask why we, a business newspaper, would carry this story at all, much less place it in one of our most important sections (see “In the Spotlight,” p. 2), as well as deviate from our standard opinionpage format. Unlike our usual coverage of politics, current events or economics, this story can in no way be construed to have any relevance to business, our main area of interest. But we also have a very clear sense of community. Poland is our home as well, and the citizens who live and work here are members of a society to whom we feel a sense of responsibility. We cannot shirk this responsibility, with the resources we have at hand, to tell this story in the hopes that we may be able to contribute to bringing this saga to a happy end. Therefore, not only are we devot-

ing two pieces in this week’s paper to Magda and her story, but we will also be following this story closely on our website and in future issues. There may be those who will

accuse me – as a father of two children under three years of age – of emotional attachment to this story. I plead guilty. Magda’s story has touched me, as it has touched many

Andrew Kureth

in Poland. But as a journalist covering this community, I see nothing wrong with emotional attachment to that community, as long as we hold to our honest coverage of the news. In covering Magda’s plight, I see no way in which we have deviated from that mission. We therefore include a picture of Magda here. She is six months old, and according to the police she is between 60-70 cm (23-28 inches) in height, with olive eyes and short, dark-brown hair. Her front bottom tooth has just erupted. She was last seen at 6 pm last Tuesday in Sosnowiec, in Poland’s southwestern Silesia voivodship. She was wearing a pink hat with a white triangle in the front, a beige plush jacket-and-pants set with a zipper and white gloves. She was in a pink blanket and holding a multicolored teddy bear. Police say that anyone who may have information regarding Magda’s whereabouts should call the Sosnowiec Police at +48 (32) 296-1255, or the nearest police unit. In Poland, these can be reached by simply dialing 997. As WBJ went to press there was already a reward of z∏.130,000 (€30,000, $40,000 £25,000) being offered for information that leads to Magda. We understand that among our

readership there is little chance that someone may have such information. But there is a chance – and we know that it can’t hurt to spread the word. As we go to press on Friday evening, we also know that there is a chance that Magda could be found before we even reach our readers on Monday. We can only hope that will be the case. In the meantime, as long as she has not been found, we must do what we can to help bring her home. Our sense of community and morality demands it. ● Andrew Kureth is editor-in-chief of Warsaw Business Journal

Magda Hair: dark brown Eyes: olive green Height: 60-70 cm Clothes: pink hat, beige two-piece plush suit, pink blanket Last seen: around 6 pm, January 24, 2012, Sosnowiec Distinguishing features: One bottom front tooth Those with information should call: +48 (32) 296-1255

A new star in the European sky: Croatia Ivan Vejvoda

S

trange as it may seem to some, there are those who wish to join the European Union, in spite of all its current flaws.

Glimmer of hope? Croatian voters gave a resounding yes to becoming the 28th EU member state in a referendum held on January 22. The country is slated to join as a full member on July 1, 2013, after the parliaments of all 27 current member states ratify the treaty of accession to the EU that Croatia signed in December 2011. The European model of interstate cooperation, the successful European peace project, the single market, and the principle of solidarity and mutual support: all these continue to exert the power of attraction to outsiders wanting to join. The European Union, founded in 1957, is currently fighting one of its deepest crises: It is struggling to salvage the joint currency of 17 of its 27 member states. Chancellor Angela Merkel of

Germany and other EU leaders have equated saving the euro with saving the Union itself. There is a growing re-nationalization of politics in European countries, and fear of “others” is on the rise. Despite all this, a European country, Croatia, has decided through a democratic procedure that it wishes to join this European Union.

With reservations Croatian leaders have hailed this victory as “a great day for Croatia,” and “finding a haven guaranteeing security and peace.” But they also underlined that the dilemmas and concerns of those who voted against entry or abstained from voting have to be given due consideration. The low turnout and the third of voters voting against entry were disappointing for many in Croatia, but also to a degree understandable. The crisis of the EU, the fear that sovereignty is being taken away – after what has been perceived as a hardfought war for national independ-

ence – the worry that now Croatia might also have to help bail out countries such as Greece, and the deep concern that a country that represents 0.8 percent of the population of the EU and 1.6 percent of EU parliamentarians will have no effective say in the affairs of the EU – all this created a relevant euroskeptic movement and led more than half of the eligible voters to abstain. The turnout was 43.5 percent and was, to date, the lowest turnout in an EU accession referendum. Why did Croatian voters decide to enter the EU? And why did they do it with somewhat less conviction than their predecessors?

Still attractive The common wisdom of the Croatian public and those of other countries in the western Balkans, where there are majorities for accession, is that it is better, as small and economically weak countries, to join a still very prosperous Union of 500 million peo-

ple and 27 member states, than to stay outside of it. A Europe that has seen 67 years of post-war peace makes for an inviting haven for the successor states of the former Yugoslavia, who went through a harrowing conflict in the 1990s. For them, entry into the EU is still, above all, a guarantee of security, stability, and peace. In this stricken corner of Europe, the EU’s soft power is very real. Enlargement of the EU, one of its greatest successes, continues despite “fatigue” – and despite long waiting times. (Croatia handed in its formal application for EU membership in 2003.) The next members in line, apart from Iceland, which is on a fast track, will probably do so at the earliest toward the end of this decade. Montenegro is a formal candidate for EU accession, with a date set for talks; Macedonia is a candidate; Serbia is awaiting candidacy in March. Bosnia and Herzegovina has signed a Stabilization and Association Agree-

ment. Kosovo’s case is the most complicated, since it remains unrecognized as a state by Serbia, Bosnia and Herzegovina, and five EU member states, and has as yet no formal relationship with the EU. And then, of course, there is Turkey.

“Entry into the EU is still, above all, a guarantee of security, stability, and peace” The “Yes” of Croatia’s citizens is a historical watershed: for the country itself, for a formerly war-torn region, and for the EU. It is another step towards the completion of an integrated Europe, free, democratic, and at peace. ● Ivan Vejvoda is the German Marshal Fund’s vice president for programs. Copyright: German Marshall Fund of the United States

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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OPINION & ANALYSIS

JANUARY 30 – FEBRUARY 5, 2012

www.wbj.pl

Protect intellectual property, but don’t gut the internet

If

there were ever an issue that showed how technologically uninformed our politicians are, it must be the recent proposed legislation to protect intellectual property on the internet, including SOPA and PIPA in the US, and ACTA in Poland and internationally. With social networking sites used by literally billions of people around the world for sharing information, you would think that politicians would be paying attention to the subtleties and ambiguities contained within these proposals. But even a cursory look at the legislation shows that is clearly not the case.

Too much stealing To be sure, intellectual property on the internet needs to be protected better. Too much outright stealing of music, film and other work goes on, despite governments’ best efforts to shut down the biggest purveyors of pirated material. As journalists we are well aware of how easily our content – produced at great effort – can be lifted and used on someone else’s website without our permission and sold or presented along with advertising, providing revenue for the thief and ourselves with no compensation whatsoever. But governments must be careful not to create laws that cut the lines that link information with information – as journalists we also benefit

greatly from sources on the internet that link to other sources, allowing us to find better, more reliable information. Such tools are invaluable not only for journalists (whose plight politicians and the public may or may not be sensitive to), but also for students, researchers, businesses and, perhaps most importantly, consumers.

Dangerous ambiguities But some of the proposed legislation would force websites to shut down, or remove links that may link to copyrighted material, putting the burden of proof on the accused, rather than the accuser. By all means, a website that distributes unauthorized or illegal content should be shut down – but punishing sites that link to those sites in the era of the “wiki” – websites that gather information generated by thousands or millions of users – is short-sighted and dangerous. What if one of Wikipedia’s thousands of contributors were to upload an offending link? Would a crucial source of information for millions around the world be taken out at the accusation of EMI or Universal? The ambiguities go further. Imagine you upload a darling video of your child to Facebook. On the television in the background, a Disney video plays. Is this copyright infringement? The recent legislation doesn’t seem to make that clear. But accord-

ing to some of these proposals, it’s at least theoretically possible that in such a situation your personal data – including your IP address – could be collected, stored and potentially disclosed upon demand of Disney. Could all of Facebook be shut down as a result? Opponents think the legislation would make this a real possibility. These are the stakes we are dealing with – entire networks of valuable information-sharing shut down at the command of a powerful vested interest. It’s the equivalent of neutering all of the empowering aspects of the internet in one fell swoop.

ators therefore stand to benefit greatly from laws allowing them to better protect their intellectual property. So the intentions of those who want to protect content creators ought to be commended. Protecting intellectual property will spur innovation and creativity, as well as boost economic performance. It’s a noble goal. But politicians must pay closer attention to the details of the legisla-

11

Editorial

tion. Otherwise they risk gutting the internet, or – at the very least – being replaced in the next election by those who better understand modern technology and the reasons for keeping it easy to share information. ● WBJ’s editorial board comprises editor-in-chief Andrew Kureth, co-managing editors Gareth Price and Alice Trudelle, and politics editor Remi Adekoya.

Over their heads All of this seems to have been lost on this generation of politicians. It’s not hard to imagine why: the most interaction many of them have with the internet is infrequent use of standard e-mail. Their assistants are in charge of making sure their YouTube and Twitter accounts are maintained, they have no time or interest in using them themselves. It’s no wonder that there has been such an outcry. Interestingly, Polish protesters in numerous interviews have repeated their support for laws that would protect intellectual property. After all, another advantage of the internet is that it makes it so easy for those with few financial resources to create and share content. These content cre-

The euro zone’s strategy of pain Jean Pisani-Ferry

F

or the third year in a row, the euro zone is the weakest link in the world economy. In 2010, attention was focused on responses to the crisis on the euro-zone periphery – Greece, Portugal, and Ireland. In 2011, the crisis moved to the core, with Italy and Spain feeling the heat, and concerns mounting about the viability of the euro zone itself. The question for 2012 is whether those tensions will abate or reach a new climax.

“The depth of Greece’s woes should not obscure the fact that it is a special case” Once again, the Greek crisis is the focus of attention and epitomizes Europe’s failings. Once again, hard decisions have to be made about debt restructuring and the provision of further assistance to Athens. And once again, the Europeans have to accept that the situation is more serious than they thought.

But the depth of Greece’s woes should not obscure the fact that it is a small economy and, in many respects, an extreme, special case. No other country flouted the European Union’s budget rules the way Greece did, or has accumulated as large a public-debt burden, and no other EU country combines to the same extent a dysfunctional state and an uncompetitive private economy.

The key battleground The real battle is being fought in Italy and Spain. Both countries’ borrowing conditions deteriorated in the second half of 2011. Both are so large – accounting for 17 percent and 11 percent of euro-zone GDP, respectively – that financing them through multilateral assistance would strain, if not exhaust, the resources of the euro zone and the International Monetary Fund. Both recently installed new, reform-minded governments. And both are struggling to rebuild competitiveness, foster growth, restore fiscal soundness, and clean up banks’ balance sheets. If they succeed, the euro will survive; if they fail, it won’t, at least in its present form. That is why discussions over the last few months have largely, if implicitly, been about how to support

adjustment and reform in Italy and Spain. Europe is currently putting in place a new fiscal compact to ensure that all euro-zone countries adopt and implement stringent budgetary rules. These choices partly reflect pragmatic concerns: all of the financialengineering schemes that have been proposed to protect Italy and Spain from aggravated borrowing conditions raise legal, political, or governance difficulties. But there is a principle at issue as well: it is thought (particularly in Germany) that protection from market pressure would only impede adjustment and reform.

No pain, no gain Indeed, the perception in Northern Europe is that only serious strains provide the required incentives to overcome domestic political and social obstacles to slashing public spending and reforming labor markets. For Southern Europe, no pain means no gain: a deep recession and a sharp increase in unemployment may be the price of lasting improvements in productivity and competitiveness. This reasoning is not without justification. Soon after the ECB began

buying Italian bonds last August, then-Prime Minister Silvio Berlusconi’s government backtracked on its commitments to tax reform. Even though it later reversed its stance, the episode was widely regarded as clear evidence of the moral-hazard effect of ECB support. Only after the bond market turned on Mr Berlusconi again was he replaced by the reformminded Mario Monti. But the strategy is a high-risk gamble. Governments may need incentives to act, but they also need to be able to show their citizens that reform pays. If, after a few quarters of fiscal adjustment and painful reform, output is lower, unemployment higher, and the outlook darker, governments may soon lose public support and reform may stall, as we have seen in Greece. Reform-minded teams may lose power to populists. Furthermore, a degraded macroeconomic and financial environment increases the likelihood of bank failures, with immediate consequences for public finances and economic confidence. These risks are compounded by the need for reform in several countries at once. Indeed, there is a “fallacy of composition” in the current approach: the countries in need of

serious adjustment and improved competitiveness include the whole of Southern Europe and France, and jointly account for more than onehalf of euro-zone GDP. True, competition for investment is an incentive to act. But macroeconomic and financial interdependence may render success elusive if reforming countries face an adverse regional environment of stagnating or falling demand. It is one thing to believe that governments act only under pressure, and that societies accept reforms only if they believe that there is no other alternative; it is quite another to believe that adjustment and reform will proceed if all of Southern Europe is struggling with recession. Keeping Southern Europe on a short leash would be a more credible strategy if accompanied by a growth program for the entire euro zone. And, at this stage, such a program is nowhere in sight. ● Jean Pisani-Ferry is director of Bruegel,an international economics think tank,professor of economics at Université Paris-Dauphineand a member of the French prime minister’s Council of Economic AnalysisCopyright: Project Syndicate, 2012.project-syndicate.org


COVER STORY

www.wbj.pl

Bleak retirement prospects Given that the value of Poles’ total retirement assets barely increased in 2011, the future appears dismal for Polish retirees, Rzeczpospolita reported. Poles’ total retirement assets amounted to z∏.2.35 trillion in 2011, up only slightly from z∏.2.26 trillion in 2010. A large portion of the savings, some z∏.2.1 trillion, lies in social insurance fund (ZUS) accounts, but some economists say that the deposits are merely state promises to retirees in the future and not real money.

High airport fuel prices in Poland The cost of refueling planes at Polish airports is higher than it is in airports in major Western European cities such as Frankfurt, London and Paris, according to Dziennik Gazeta Prawna. In Europe, only Ukraine and Russia have more expensive fuel prices. In Paris, for example, Lot Polish Airlines can pay $30-40 less for a metric ton of fuel than in Warsaw. As a result, many airlines are now buying fuel abroad in order to avoid having to fill their tanks at Polish airports.

Disappointing profit for Orlen Polish fuel giant Orlen revealed last Thursday its estimated operating profit for Q4 2011 was approximately z∏.100 million, while analysts had been expecting at least z∏.700 million. Orlen attributes the disappointment to low refinery and petrochemical profit margins and a low Ural/Brent differential. Another factor is write downs on foreign investments, mainly in the Czech Republic and Lithuania. ●

JANUARY 30 – FEBRUARY 5, 2012

Cyber security

Hacker attacks highlight Polish vulnerabilities Alice Trudelle, Remi Adekoya Poland’s government websites have been compromised – will this be a wake-up call or will the warning go unheeded?

against Poland’s support for ACTA came days after coordinated opposition in the US to the Stop Online Piracy Act (SOPA) and Protest Intellectual Property Act (PIPA). Like SOPA and PIPA, critics of ACTA argue that the bill will stifle freedom of expression on the internet and endanger users’ right to privacy. The SOPA and PIPA legislation now appear unlikely to pass, but despite this and the cyber attacks on Polish sites, Prime Minister Donald Tusk refused to budge over ACTA, announcing that Poland would sign the agreement and would not “submit to blackmail.” The agreement was signed in Tokyo on January 26 (see story, p. 3). The prime minister added, however, that “only when the government is sure that Polish law guarantees freedom on the internet, will we send the bill for ratification to parliament.”

No one was seriously harmed by the cyber attacks unleashed on several Polish government websites last week. The attacks did, however, expose the inexplicably low level of security protecting those sites, and at the same time brought into question what would happen if more malevolent hackers were to target, for example, IT systems operating the country’s infrastructure.

ACTA opposition The hackers and online “activists” attacked Polish government websites in protest against government’s plans to sign the Anti-Counterfeiting Trade Agreement (ACTA), launching a distributed denialof-service (DDoS) attack against the websites of the president, prime minister, parliament, Internal Security Agency (ABW) and other government offices. According to Poland’s Computer Emergency Response Team (CERT Polska), a government body tasked with reacting to internet security breaches, apart from DDoS attacks, there were at least two confirmed “defacements” of government

VERONIKA JOY/WBJ

12

ACTA protesters took to the streets of Warsaw last week websites: those of the prime minister and the Ministry of Defense. At first, the government attempted to deny what was going on, with government spokesperson Pawe∏ GraÊ saying the problems were “just the result of huge interest in the sites of the prime minister and parliament.” After the truth of the incidents became apparent, these comments

“The hackers are always one step ahead of us” quickly became a source of ridicule on Facebook and other social networking sites. A Twitter account using the name “AnonymousWiki” claimed responsibility for the

hacking and warned the government of further strikes if Poland signed the ACTA treaty. It also claimed it had “leaked documents on many of Poland’s officials,” and that if the treaty were passed, the group would not hesitate to make those documents public. These acts of “hacktivism” (the act of breaking into a computer system for politically or socially motivated purposes)

Security breach The apparent ease with which hackers brought down government websites raised serious security concerns in Poland, after hackers indicated that the login and password for the prime minister’s website were “admin” and “admin1”, respectively. These words tend to be place holders when a new system is installed, so website administrators can

Anonymous and Operation AntiSec Computer hacker group Anonymous has claimed responsibility for recent attacks on Polish government websites, including those of President Bronis∏aw Komorowski, Prime Minister Donald Tusk, the Polish parliament and the Foreign Ministry. The Anonymous organization, sympathizers of which often wear Guy Fawkes masks (popularized in the film “V for Vendetta”), claims to have no specific leader, but operates instead as “a collective of people who come together online, commonly to stage a protest” according to the group’s Facebook page. The organization is opposed to both censorship of the internet and the fight

against internet piracy. Operation AntiSec is a series of hacking attacks performed by Anonymous and related groups, with LulzSec being the most prominent. The “operation” has targeted governments and private interests, including the Arizona Department of Public Safety, the UK’s Serious Organized Crime Agency, AT&T, Sony, Viacom, Disney, EMI and NBC Universal. The groups have hacked into servers, taken over websites and made mountains of data – including credit card numbers and e-mail addresses – available to the public. LulzSec announced it was disbanding in mid-2011, but

more attacks within the operation have been undertaken by Anonymous and other “hacktivists.” “The Polish Revolution” as Anonymous dubbed the attacks on Polish government websites in late January, does not appear to be part of Operation AntiSec, and instead seems to have been specifically related to Poland’s intention to sign ACTA. Regardless of the motivations however, hackers have made their presence felt in Poland. How the government will react remains to be seen. VJ, AK


COVER STORY

JANUARY 30 – FEBRUARY 5, 2012

enter a proper login and password later on. Last Monday Foreign Minister Rados∏aw Sikorski even casually thanked the hackers via his Twitter account, for testing his ministry’s website. “Thank you to the hackers for the test of the Foreign Ministry’s website. Another attack repulsed after a few minutes. Only through practice can we improve our procedures,” Mr Sikorski wrote. Others were less sanguine, however. “These events showed us that we are not prepared to counter potential cyber threats,” said Joanna Âwiàtkowska, who is responsible for the project “Target: Cyber Security” at the Kosciuszko Institute, a think tank. “The poor login and password of the Prime Minister’s website are just embarrassing. And the same with the websites of entities that are supposed to take care of Poland’s cyber security: the ABW’s web page was shut down. The statements of the Polish Ministry of Foreign Affairs show us that our decision makers have played down the problem. These are symptoms of deeper problems, and Poland needs to face them,” she added.

Critical infrastructure Arguing that cyber security is not high enough on the government’s agenda, the Kosciuszko Institute has been carrying out a comprehensive analysis of Poland’s defense measures against cyber threats, with results scheduled to be published in the next few weeks. According to Ms Âwiàtkowska, the attacks against government websites fall in the category of hacktivism, were a manifestation of people’s opposition to ACTA, and were not aimed at destroying the government’s IT systems. But the possibility that those systems could be endangered in the future is what has security experts so worried. With the global financial system and critical national infrastructure (such as the energy grid, the supply of water and gas, the health care system and telecommunications) all based on the use of ICT solutions, cyber security has become a fundamental element of national security policy.

“Poland’s cyber security is insufficient and rudimentary. A lack of a strategic approach is very visible” Following last week’s attacks, the ABW stated that the security of classified information had not been at risk, primarily because confidential information is subject to special control and is stored in separate networks that are not accessible through the internet. But networks that are isolated in this way are still vulnerable. The most famous case in which such systems were attacked occurred in 2010 in Iran. The country’s factories, power plants, oil pipelines and military installations were targeted by the Stuxnet worm. While that program was subsequently described as one of the most sophisticated pieces of malware ever detected, it made clear that even the most heavily guarded networks could be compromised.

Cyber defense So where does Poland stand when it comes to cyber defense? The country participates or plans to participate in several cyber defense systems, including NATO’s Cooperative Cyber Defence Centre of Excellence. Poznaƒ University of Economics’ Department of Information Systems and Polish IT solutions provider Sygnity are piloting the Semantic Monitoring of the Cyberspace (SMC), as part of the EU’s Coordination of the European Future of Internet Forum of Member States (ceFIMS) project. The SMC aims to create a prototype to monitor various internet sources in order to detect cyber threats. CERT Polska, as part of the IT security Department of the Polish Internal Security Agency (ABW), is tasked with ensuring and developing the capabilities of public administration units to protect themselves against cyber threats, “in particular against attacks aimed at the infrastructure involving IT systems and networks the destruction or disturbing of which may considerably threaten the lives and health of people, existence of national heritage and the envi-

Most common cyber threats Phishing: Attempting to acquire sensitive information such as user names, passwords, and credit card details by imitating a trustworthy entity Distributed Denial of Service (DDoS): An attack in which a multitude of systems swamp a single target with traffic, thereby causing denial of service for users of the targeted system Flooding: Attack designed to bring a network or service down by flooding it with huge amounts of information. Hacking: Breaking into a system as a result of finding a security gap in the access to confidential information ●

ronment or lead to considerable financial loss or disturb the operation of public authorities.” CERT is responsible for coordinating responses to cyber attacks, but when contacted by WBJ, a spokesperson at the ABW said the situation was fluid and declined to comment on its assessment of CERT’s response to the latest attacks on governments websites. Kosciuszko Institute experts argue that the systems Poland has in place do not amount to a cohesive system of cyber defense. “There is no piece of legislation designed to exclusively address cyber crime and consequently it is next to impossible to define one institution or agency which would be exclusively responsible for the country’s cyber security. As a result, all undertaken actions are insufficiently coordinated and less effective,” according to the institute’s policy brief “Cyber Terrorism – A new threat to international security in the 21st century.” “The solutions that Poland applies for cyber security are insufficient and rudimentary. A lack of a strategic, holistic approach in this area is very visible,” commented Ms Âwiàtkowska.

Missing link? Contacted by WBJ, Poland's incumbent telecoms operator TP said the firm has a its own CERT which monitors IT security incidents 24/7, and is in constant contact with other IT security teams within the country and worldwide. Both Polish gas infrastructure operator Gaz-System and Poland's biggest bank PKO BP declined to comment on their cyber protection systems, saying the information was too sensitive. According to all the experts contacted by WBJ, Polish businesses are actually better prepared than government institutions to counter potential cyber attacks. But according to Marcin Geroch, director of the center of security and data protection at Polish IT provider Comarch, more work needs to be done, as many firms and institutions still fail to see cyber assaults as a real, immediate threat. “More and more companies and institutions are better protecting themselves against possible attacks from hackers, however, knowledge about these threats is still average,” he said. “Poland is a country that has a well-developed information system, a lot of business is handled via the internet and a

lot of sensitive data is transmitted in this way. Unauthorized access to certain information could be extremely costly, [and involve] severe financial losses, loss of customer confidence, and also serious legal consequences.” Security experts also note that while businesses might be better prepared than the government because they are more acutely aware of the financial consequences of poor cyber security, the potential for public-private cooperation in this area is still underestimated in Poland. This is a problem in the sense that from a national cyber security point of view, both public and private institutions are often linked. “Cyber security knows no borders, therefore solutions regarding solely the state level hardly work. Technology is ahead of politics, that is why public-private cooperation is so important,” said Andrew Nagorski, vice president of the New York-based think tank EastWest Institute at a debate on cyber security at the 2011 Economic Forum in Krynica.

Possible solutions So what does Poland need to do? According to the Kosciuszko Institute’s Joanna Âwiàtkowska, the answer is threefold. The first step would comprise a review of Polish legislation related to cyberspace. Strengthening publicprivate partnerships on cyber security comes next, and should include a security audit of the ICT systems of firms responsible for critical infrastructure. Last but not least, awareness of the importance of cyber security must be raised among internet users and people responsible for operating critical infrastructure, she said. Another challenge, according to Comarch’s Marcin Geroch, is for firms and institutions to constantly update the security systems in place, which is sometimes neglected because it is expensive. “Security procedures require a considerable investment, and the results are not directly tangible. Unfortunately, most institutions are beginning to defend themselves after the fact,” he said. “This weekend’s attack showed that there are straightforward ways [for hackers] to get into some of the most important government websites. It is difficult to defend against hackers, because they always are one step ahead of us,” added Mr Geroch. It remains to be seen whether last week’s attacks will have decision-makers turning their attention to cyber security, although some experts are doubtful. “I am a little worried that this won’t occur until something more serious happens,” said Ms Âwiàtkowska. ●

www.wbj.pl

13

Legal Eye

Analyzing ACTA Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners. fogo@pl.millercanfield.com Last week Poland witnessed several street demonstrations throughout the country, together with the hacking of numerous government websites in protest against the Polish government’s decision to sign the Anti-Counterfeiting Trade Agreement (ACTA) treaty in Tokyo, Japan. Despite the protests, Poland’s Ambassador to Japan signed the treaty on January 26 on behalf of Poland. Most other EU member countries also signed the treaty. Supporters of the agreement argue that its adoption will create an international standard for intellectual property rights, thereby ensuring a minimum set of protections to be enforced by all signatory countries. Opponents argue, however, that the treaty will have a chilling effect on freedom of speech and expression.

What’s the fuss? The treaty seeks to combat the cross-border trade in counterfeit goods (think fake Gucci bags) as well as online piracy. Supporters and opponents alike generally agree that governments should do more to protect intellectual property rights, and specifically the cross-border trade in counterfeit goods. Where they disagree, however, is on how to protect intellectual property rights on the internet. ACTA seeks to broaden the scope of activities on the internet subject to criminal prosecution as opposed to civil prosecution. Opponents argue that ACTA will subject internet service providers to criminal prosecution for their customers’ online activity. Moreover, “non-commercial” file sharing will now potentially be subject to criminal prosecution. The treaty, opponents fear, is not clearly written, leaving many key provisions subject to interpretation by individual governments.

Private vs commercial A key issue open to interpretation regards just what constitutes “commercial” use versus “private” use. ACTA criminalizes the illegal “commercial” downloading of copyrighted material, but fails to define what is meant by “commercial.” At issue is where to draw the line between commercial and pri-

vate use. Both are illegal – however, until now the illegal downloading of material from the internet for personal use has been subject to the imposition of a monetary fine, not imprisonment. ACTA leaves it to individual countries to decide where to draw line, which opponents argue will lead to a patchwork of enforcement actions from country to country, thereby undermining the treaty’s stated goal to bring uniformity to the global protection of copyrights.

Is it legal? As written, ACTA is legal in Poland. To begin with, Poland’s constitution provides that any international treaty entered into by the Polish government shall trump local law. In the lead-up to signing the treaty, Poland’s Minister of Culture and National Heritage declared that ACTA did not conflict with any Polish regulations currently in effect, nor would it require the amendment of any existing laws. Enforcement of ACTA, however, is another story. Strict enforcement of every provision of the Treaty could run afoul of both Poland’s and the EU’s personal data protection laws and directives. Specifically, the need to collect, store and potentially disclose personal data of an individual internet user upon demand of the owner of an infringed copyright (as opposed to the current requirement to first obtain a court order to seek such personal data) would appear to violate Poland’s personal data protection law and the EU’s Directive on Electronic Commerce. Moreover, toward the end of 2011, the Court of European Justice ruled in Scarlet v. Sabam that internet service providers are not obligated to filter electronic communications or to block such content in order to protect intellectual property rights. Nor can the service provider be held accountable for the illegal activity of individual users. Poland will need to be very careful in how it interprets many parts of ACTA and how it enforces the anti-piracy provisions of the treaty if it wishes to avoid being brought before the Court in Strasbourg. ●


Developers UBM and Immofinanz Group will soon open malls in Gdynia and Lublin

The building permit for the Z∏ota 44 tower in Warsaw has been confirmed by a court

15

17

LOKALE IMMOBILIA

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

Helios in Galeria Pomorska A Helios multiscreen movie theater will open in the Galeria Pomorska shopping center in Bydgoszcz later this year as part of the ongoing refurbishment and development program currently taking place at the mall. “Helios are a leading Polish multiplex cinema operator and their presence in Galeria Pomorska will transform the center’s leisure offer,” Shane Scott, director of Galeria Pomorska owner Resolution Property, said in a statement. ●

In this issue New Warsaw skyscraper . . . . .14 Warszawa Zachodnia . . . . . . . .14 UBM/Immofinanz malls . . . . . .15 Retail park in Białystok . . . . . .15 Retail report . . . . . . . . . . . . . . . .15 Property-related stocks . . . . . .15 Złota 44 permit upheld . . . . . . .17 Zdrojowa’s seaside homes . . .17 Inter IKEA in Lublin . . . . . . . . . .17

W∏odarzewska plans super thin skyscraper in the Polish capital The tower will be less than 10 meters wide but the final height is yet to be determined Developer W∏odarzewska is planning the construction of a new high-rise building in central Warsaw which will sit on a tiny plot located at the intersection of the capital’s Al. Jana Paw∏a II and ul. Sienna. The skyscraper project, whose architectural design is being furnished by the renowned APA Kury∏owicz & Associates (APAKA) studio, will stand out due to its unusual dimensions: the small size of the plot means the tower will be just seven meters wide at the ground-floor level. Higher up, the building will be slightly wider and will hang over the adjoining pavement and historical tenement house, once the necessary administra-

The new Warsaw skyscraper could be up to 120 meters high tive permits are secured. The final height of the tower is yet

to be determined: 85- and 120meter variants are both being

considered. For now, just a preliminary

architectural concept of the planned tower exists with work on the design having been impacted by the tragic death of APAKA chief architect Stefan Kury∏owicz in a plane crash last year, said Ewelina Szymeczko from the press office of W∏odarzewska. “It is too early to tell what the building will ultimately look like,” Ms Szymeczko said, adding that the developer had secured a planning decision from Warsaw City Hall that allows for a structure with up to 52 floors and 30,000 sqm of space. “At the moment, other planned investments including shopping malls and a hotel building are the priority for our company. [The skyscraper on ul. Sienna] belongs to the future, but not to the nearest future,” Ms Szymeczko said. Adam Zdrodowski

Regulator allows HB Reavis and PKP to team up on €110 million investment in Warsaw The Office of Competition and Consumer Protection (UOKiK) has agreed to international developer HB Reavis and Polish State Railways (PKP) jointly carrying out their planned railway station and office complex investment in Warsaw. The two entities have been allowed to co-control a company called West Station Investment, which is expected to develop a new Warszawa Zachodnia (Warsaw West) railway station in the Polish capital, as well as build commercial space on the adjoining plots. “After carrying out an antimonopoly procedure the president of the Office decided that the [teaming up of HB Reavis and PKP] will not lead

to a major limitation of competition,” reads a statement posted on UOKiK’s website. The HB Reavis-PKP investment was announced in June last year after the two companies had reached an agreement concerning the development of a 1,250 sqm railway station and a complex of seven office buildings comprising a total of 54,000 sqm of space. The whole project, whose total value is estimated at approximately €110 million, is expected to be built in a number of phases with the railway station scheduled to be completed by the end of 2014 and the office complex three years later. Adam Zdrodowski

COURTESY OF HB REAVIS

Jones Lang LaSalle has become property manager of the Atrium International Business Center office project in Warsaw. The scheme comprises 12,000 sqm of office space and was recently acquired by Rockspring Property Investment Managers. The Atrium International Business Center development is located at the intersection of Al. Jana Paw∏a II and ul. Grzybowska in Warsaw’s Central Business District. Its tenants include Pramerica, Reuters, Dago and BZ WBK.

JAN 30 – FEB 5, 2012, LI 17/04

Skyscrapers

COURTESY OF APA KURY¸OWICZ & ASSOCIATES

JLLS manages AIBC scheme

The project will include an office complex with 54,000 sqm of space

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


JANUARY 30 – FEBRUARY 5, 2012

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Shopping centers

DSV Group stays at Teresin

COURTESY OF UBM POLSKA

Polish retail UBM and Immofinanz Group to open two Polish market back on malls in upcoming weeks track: report

Galeria Szperk will provide 23,000 sqm of retail space

Both companies are planning further investment in retail projects in the country Austrian real estate investors UBM and Immofinanz Group will open their Galeria Szperk shopping center project in Gdynia on the Baltic coast in mid-February. The scheme will provide 23,000 sqm of retail space, as well as parking spaces for 960 cars. The second phase of an investment which also includes a 7,000 sqm NOMI DIY store that opened in 2010, Galeria Szperk will house 60 stores and points of service. Tenants that have already been secured include a number of major clothing brands and a 2,000sqm Alma Market deli-

catessen store. At the beginning of March, UBM and Immofinanz Group will also open their FMZ Lublin retail project in Lublin, southeastern Poland. Construction on the facility, which will provide almost 14,000 sqm of space, has been underway since May last year. The development will include a 8,925 sqm building occupied by a Praktiker DIY store and a 5,030 sqm shopping passage housing a number of individual outlets. Rossmann and Jula will respectively take up 407 sqm and 2,983 sqm and there will also be a large electronics and home appliances store. “Galeria Szperk and FMZ Lublin are not the only retail projects in which UBM is

involved. Our plans for the near future include the development of a shopping center in Sosnowiec,” said Peter Obernhuber, member of the management board of UBM Polska. He added that construction on the mall is scheduled to launch in Q1 or Q2 2013 and that the company is now looking for other interesting retail locations, especially in cities with populations of more than 100,000. Immofinanz Group is currently planning another major shopping center in Lublin which it wants to deliver by the end of next year. In the near future, the company will also focus on the development of its STOP. SHOP retail park concept across Poland. Adam Zdrodowski

First retail park investment in Bia∏ystok to open in 2014 Colliers International is in the process of commercializing the Kwadrat Retail Park project in Bia∏ystok, Podlaskie voivodship. Located on ul. Andersa, approximately two kilometers from Bia∏ystok’s downtown, the scheme will be the first retail park in the city. The planned development will be built by domestic-appliances provider Biazet, whose production plant currently sits on the land earmarked for the investment.

“Biazet is planning to build a factory in another location due to the insufficient development potential of the present production plant,” Miros∏aw Newel, president of Biazet’s management board, said in a statement. Kwadrat Retail Park will offer 55,000 sqm of leasable space located on the project’s single floor. The investment is scheduled to open for business in March 2014. “The aim is to create the

first retail park with a significant leasable area in the city with international, domestic and local brands,” stated Marcin Gudz, senior associate at Colliers International Poland. He added that Colliers is now in the middle of negotiations with an international grocery store chain, as well as with a DIY store. “A planning decision has already been granted to the investor,” Mr Gudz said. Adam Zdrodowski

Poland’s retail property market saw a recovery in terms of the provision of new shopping center space in 2011, at 487,000 sqm – a y/y increase of 17 percent – delivered last year, according to a recent report by Jones Lang LaSalle. The largest share of the new space, some 31 percent of the total stock, was built in small cities with populations of fewer than 100,000 individuals, the study said. Demand for space in large cities remained stable. Smaller and saturated markets however, were carefully scrutinized by potential tenants, leading to some of them seeing downward pressure on rent levels. Nevertheless, this did not apply to the best schemes, for which there is now high demand and which often see long waiting lists, the report said. Currently, there is approximately 707,000 sqm of retail space under construction in Poland, of which 496,000 sqm is scheduled to be completed this year. Cities with popula-

15

Logistics and transportation company DSV Group has prolonged its lease of 35,600 sqm of warehouse space at the Panattoni Park Teresin logistics park in central Poland. Following a deal brokered by Colliers International, the tenant will stay in the facility for another five years. “We chose this development in 2007 due to its good location and the competitive rental rates offered. Both factors again played a key role in our decision to extend the contract,” Thomas Jansson, CFO at DSV Poland, said in a statement.

tions below 100,000 are expected to increase their share in the total volume to over 45 percent of the 2012 pipeline. “Poland is now frequently perceived as separate from the rest of the CEE basket,” Edyta Potera, retail department director at Jones Lang LaSalle in Poland, said in a statement. “International brands monitor the economic situation in Poland and see confirmation of their belief that it is stable and has good prospects for growth,” she added. She pointed out that because of the size of the Polish population, business development opportunities are not limited only to Warsaw but are also offered by a number of smaller markets outside the capital. “This factor enables particular brands to optimize their development strategy and makes the Polish market more attractive for many groups of tenants,” Ms Potera said.

Ceva Logistics at PointPark Poznaƒ Logistics services provider Ceva Logistics has leased 8,270 sqm of storage space and 360 sqm of office space at PointPark Properties’ Point Park Poznaƒ logistics park in western Poland. Colliers International brokered the transaction, which helped raise the park’s occupancy to 90 percent ●

Adam Zdrodowski

Property-related stocks Security

Closing price on Jan 26

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

80.00

2.56

64.00

109.20

-19.60

25,530,098

2,042.41

CELTIC

15.70

-4.91

15.55

24.89

-17.15

34,068,252

534.87

DOMDEV

31.60

6.97

23.50

50.80

-32.77

24,560,222

776.10

ECHO

3.85

1.32

3.05

5.55

-12.90

420,000,000

1,617.00

ELBUDOWA

101.90

-0.10

87.00

168.60

-38.84

4,747,608

483.78

ENERGOPLD

2.01

1.01

1.81

4.10

-47.11

70,972,001

142.65

ERBUD

18.45

-0.54

14.65

52.60

-64.31

12,644,169

233.28

GANT

8.26

0.98

5.85

16.63

-51.33

20,499,953

169.33

GTC

10.15

14.82

7.91

21.79

-52.24

219,372,990

2,226.64

HBPOLSKA

0.93

-2.11

0.70

2.79

-66.06

210,558,445

195.82

JWCONSTR

7.65

11.52

4.36

15.50

-45.47

54,073,280

413.66

LCCORP

1.12

10.89

0.85

1.69

-25.33

447,558,311

501.27

MARVIPOL

9.45

3.50

7.22

9.95

-4.55

36,923,400

348.93

MIRBUD

2.25

-0.44

1.94

4.75

-49.66

75,000,000

168.75

MOSTALWAR

19.50

13.97

15.40

49.79

-60.15

20,000,000

390.00

MOSTALZAB

1.65

3.12

1.07

3.00

-39.56

149,130,538

246.07

ORCOGROUP

15.50

0.13

14.00

40.00

-45.42

17,053,866

264.33

PBG

80.50

1.26

56.05

207.00

-61.30

14,295,000

1,150.75

PLAZACNTR

2.53

1.20

1.80

5.15

-41.57

297,174,515

751.85

POLAQUA

5.50

8.91

4.53

20.60

-71.85

27,500,100

151.25

POLIMEXMS

1.73

0.00

1.23

3.86

-55.53

521,154,076

901.60

POLNORD

17.13

11.23

11.03

33.55

-46.95

23,798,439

407.67

RANKPROGR

10.30

3.10

8.60

13.60

-2.28

37,145,050

382.59

ROBYG

1.27

6.72

1.04

2.13

-33.16

257,390,000

326.89

RONSON

0.90

-2.17

0.77

1.58

-36.62

272,360,000

245.12

TRAKCJA

1.22

-0.81

0.65

3.87

-68.31

232,105,480

283.17

ULMA

60.60

1.00

57.00

88.00

-27.43

5,255,632

318.49

UNIBEP

6.26

4.86

4.47

9.94

-35.79

33,927,184

212.38

WARIMPEX

3.80

10.14

2.95

10.89

-61.15

54,000,000

205.20

ZUE

7.37

2.93

5.07

14.54

-48.10

22,000,000

162.14


JANUARY 30 – FEBRUARY 5, 2012

LOKALE IMMOBILIA – REAL ESTATE

Z∏ota 44 skyscraper

www.wbj.pl

17

New Inter IKEA Centre Group Poland project in Lublin

Court rules in favor of Z∏ota 44 developer

49,000-sqm shopping gallery and a 11,000-sqm hypermarket. A parking lot for 3,500 cars will also be part of the investment. According to Jones Lang LaSalle, Lublin is now undersupplied with retail space and has recently been on the radars of shopping centers developers. The company expects the planned IKEA investment to be welcomed by

Inter IKEA Centre Group Poland is planning a new shopping center complex in the southeastern Polish city of Lublin. The project, which will be commercialized by Jones Lang LaSalle, is scheduled to be completed in spring 2014. The planned development will comprise a total of approximately 80,000 sqm of GLA on its two floors and will include an IKEA store, a

retailers and the local community. Inter IKEA Centre Group Poland deals with the development and management of shopping centers in which IKEA is the main partner. The company is currently involved in projects including the extension of Park Handlowy Bielany in Wroc∏aw, Lower Silesia voivodship. Adam Zdrodowski

Z∏ota 44, which is located in downtown Warsaw, is almost ready for topping out

Legal risks relating to the project’s building permit no longer pose a threat to construction, developer Orco has said The Voivod Administrative Court in Warsaw has rejected claims made by neighbors of the under-construction Z∏ota 44 skyscraper that a number of mistakes were made at the administrative stage of the project and that work on the scheme should be suspended. The court’s decision has reaffirmed the validity of the luxury residential develop-

ment’s building permit and means all outstanding proceedings related to the case have been closed, Orco Property Group, the developer behind Z∏ota 44, said in a statement. Orco says that construction is no longer threatened by any legal risk relating to the scheme’s building permit. In a series of court cases starting in 2008, several neighbors of the project challenged the legality of the development’s building permit and other paperwork, leading to work on the scheme being suspended on a number of different occasions. “While it remains possible

for the neighbors to – again – file a cassation appeal to the Supreme Administrative Court, we are absolutely convinced that any further complaint would be dismissed,” Mariusz LeÊniewski, head of Orco’s Legal Department in Poland, said in the statement. Orco announced in January that the 53rd floor of the Daniel Libeskind-designed building had been completed and that the project would receive full bank financing. “We are just one floor away from topping out the building,” said company representative Alicja KoÊciesza. Gareth Price

Developer Zdrojowa Invest has launched construction on a new residential resort project located 10 km east of the city of Ko∏obrzeg, in the Zachodniopomorskie voivodship. Called Boulevard Ustronie Morskie, and valued at z∏.22 million, the development will overlook the Baltic coast. It is expected to be completed in autumn 2013 and be ready for tenants in the spring of the following year. In total the development will offer 54 three-storey luxury apartment units located on a 350-meter cliff-side stretch of coastline. Two passageways will connect the site to the beach. The residences will provide tenants with views of the sea, with all units due to be fitted with their own balconies and top-level apartments with their own terraces. Owners will also be given the option of having a jacuzzi installed and having their units fully furnished. The site will feature 20 retail service centers.

Renata Sobczyƒska, communications director for the developer, said that “buyers have the option to purchase these properties for their own use or sign an agreement with us to rent out their units which we would then manage for them. The latter option is one which the majority of buyers are choosing.” She added that, “for the first two years, we guarantee a

rate of return of 6.5 percent and then afterwards a share in revenues.” Zdrojowa Invest’s plans for 2015 include “five additional investments, in the mountains, by the sea and in the Masurian Lake District which will amount to z∏.420 million,” Jan Wróblewski, a member of the board at Zdrojowa Invest, said in a statement. Ella Pa∏ka

COURTESY OF ZDROJOWA INVEST

COURTESY OF PR PREMIUM

Zdrojowa Invest begins construction on luxury Baltic Sea residences

The whole development will offer 54 three-storey units


18

THE LIST

www.wbj.pl

JANUARY 30 – FEBRUARY 5, 2012

Travel & Leisure

Five-Star Hotels in Poland Listed alphabetically

www.bookoflists.pl

Rates including breakfast: Single / Double / Suite

Number of restaurants / Number of bars, cafaterias and pubs

Indoor swimming pool / Outdoor swimming pool

Sauna / Tanning facilities

Business center / Currency exchange

Newsstand / Souvenirs / Beauty parlor

Non-smoking rooms / Air conditioning

20 1 3

4 80 60 -

€85.0-130.0 €120.0-155.0 €165.0-280.0

2 WND

✓ -

✓ -

✓ -

✓ ✓

City Park Hotel & Residence ul. Wyspiaƒskiego 26A, 60-751 Poznaƒ 61 221-8400/61 221-8402 kontakt@cityparkresidence.pl www.cityparkresidence.pl

WND WND 88

4 250 100 300

From €84.0 From €95.0 From €84.0

2 WND

✓ -

✓ -

✓ ✓

-

✓ ✓

Crown Piast Hotel & Park ul. Radzikowskiego 109, 31-342 Kraków 12 683-2600/12 683-2665 recepcja@hotelpiast.pl www.hotelpiast.pl

179 2 15

9 780 300 100

€50.0-160.0 €60.0-180.0 WND

3 WND

-

✓ -

✓ -

✓ -

Grand Hotel Kraków ul. S∏awkowska 5/7, 31-014 Kraków 12 424-0800/12 421-8360 hotel@grand.pl www.grand.pl

55 1 9

9 365 130 574

WND WND WND

4 1

-

✓ -

✓ -

Holiday Inn Kraków City Center ul. Wielopole 4, 31-072 Kraków 12 619-0000/12 619-0005 BC@hik.krakow.pl www.hik.krakow.pl

154 2 30

5 210 50 206

WND WND WND

1 1

-

-

Hotel Dwór Oliwski ul. Bytowska 4, 80-328 Gdaƒsk 58 554-7000/58 554-7010 hotel@dworoliwski.pl www.dworoliwski.pl

57 2 13

2 240 140 145

z∏.349.0-619.0 z∏.409.0-679.0 z∏.849.0-1,059.0

1 1

✓ -

Hotel Rezydent Pl. Konstytucji 3 Maja 3, 81-704 Sopot 58 555-5800/58 555-5801 rezerwacja@hoterezydent.com.pl

64 1 3

20 80 80 WND

WND WND WND

1 2

Hotel Rialto ul. Wilcza 73, 00-670 Warsaw 22 584-8700/22 584-8701 info@rialto.pl www.rialto.pl

33 1 11

2 50 40 -

€90.0-260.0 €110.0-295.0 €547.0

Hotel SPA Dr Irena Eris Wzgórza Dylewskie ul. Wysoka WieÊ 22, 14-100 Ostróda 89 647-1111/89 647-1000 wzgorza@hotelspa.pl www.drirenaerisspa.com

90 1 7

5 230 100 300

Hotel Stary ul. Szczepaƒska 5, 31-011 Kraków 12 384-0808 /12 384-0809 stary@hotel.com.pl www.stary.hotel.com.pl

46 1 7

Hyatt Regency Warsaw ul. Belwederska 23, 00-761 Warsaw 22 558-1234/22 558-1235 warsaw.regency@hyatt.com www.warsaw.regency.hyatt.com

Internet Access: LAN / Internet Access: Wi-fi

Number of conference rooms / Total number of seats in all meeting rooms / Number of seats in largest meeting room / Maximum exhibition area (sqm)

Guarded parking / Underground parking

Total number of rooms / Wheelchair accesible rooms / Number of suites

Amenities

Other

Number of employees / Year founded

Manager / Title

✓ -

✓ ✓

Hairdresser; terrace with jacuzzi; limo lease; transport to/from the airport; car rental; cigar room; safe; luggage storage; child care; cleaning shoes; laundry services; concierge

WND 2008

J. J. Franczak

✓ ✓

Wellness and fitness center; sauna; jacuzzi; gym; cardio room

50 2008

Magdalena Strój

✓ ✓

✓ -

✓ ✓

WND

50 1991

Aneta Konopczyƒska

✓ -

✓ ✓

✓ -

✓ ✓

WiFi in the business center, restaurant, cafe and at reception

WND 1887

Robert Mrzyg∏ód

✓ ✓

✓ -

✓ ✓

✓ ✓

✓ ✓

Internet access included in the room; free access to MiniGym

WND 2001

Shmariahu Yossef Wircer

✓ -

✓ -

✓ ✓

✓ ✓

✓ -

WND ✓

Wine store; “s∏oneczna pla˝a”; jacuzzi; fitness room; steam; garden

70 2002

Izabela Wilczyƒska

-

-

-

✓ ✓

✓ -

✓ ✓

WND

WND 2001

Maciej Miazek

1 WND

-

✓ -

✓ -

-

✓ ✓

✓ -

Exercise equipment; CD/DVD access and library

WND 2003

Jacek Szcz´sny

€143.0 €157.0 €340.0

2 2

✓ ✓

✓ -

✓ -

✓ ✓

✓ ✓

✓ ✓

✓ ✓

WND

160 2006

Krzysztof Kaczmarek

2 190 160 180

€130.0-200.0 €150.0-225.0 €260.0-570.0

2 WND

✓ -

✓ -

✓ -

-

✓ ✓

✓ -

Wellness & SPA free access; massages

WND 2006

Danuta Barcik

229 3 19

13 697 352 120

WND WND WND

2 1

✓ -

✓ -

✓ -

✓ ✓

✓ ✓

✓ ✓

Hairdresser; florist

WND 2002

Heddo Siebs

InterContinental Warszawa ul. Emilii Plater 49, 00-125 Warsaw 22 328-8888/22 328-8889 warsaw@ihg.com www.warsaw.intercontinental.com

308 5 21

13 784 414 1,100

€85.0-130.0 €95.0-140.0 €160.0-220.0

2 2

✓ -

✓ -

✓ -

✓ ✓

✓ ✓

✓ WND

✓ ✓

WND

250 2003

Christian Henkemeier

Le Meridien Bristol ul. Krakowskie PrzedmieÊcie 42/44, 00-325 Warsaw 22 551-1000/22 625-2577 bristol@lemeridien.com www.lemeridien.com/warsaw

174 2 31

10 620 180 WND

NA z∏.1,460.0-1,760.0 z∏.1,960.0-7,500.0

1 2

✓ -

✓ ✓

✓ -

✓ -

✓ ✓

-

✓ ✓

WND

187 1991

Michael Goerdt

Litwor ul. Krupówki 40, 34-500 Zakopane 18 202-4200/18 202-4205 rezerwacja@litwor.pl www.litwor.pl

48 1 5

2 80 60 -

WND WND WND

1 WND

✓ -

✓ -

✓ -

-

✓ ✓

✓ ✓

✓ ✓

WND

WND 1999

Szymon Kukulski

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

Bohema Hotel & SPA ul. Konarskiego 9, 85-066 Bydgoszcz 52 560-0602/52 581-0088 rezerwacja@hotelbohema.pl www.hotelbohema.pl

Director

General Director

General Director

Director

General Director

General Director

Director

Director

General Director

General Director

General Director


THE LIST

www.wbj.pl

19

Number of conference rooms / Total number of seats in all meeting rooms / Number of seats in largest meeting room / Maximum exhibition area (sqm)

Number of restaurants / Number of bars, cafaterias and pubs

Indoor swimming pool / Outdoor swimming pool

Sauna / Tanning facilities

Business center / Currency exchange

Newsstand / Souvenirs / Beauty parlor

Non-smoking rooms / Air conditioning

Guarded parking / Underground parking

Internet Access: LAN / Internet Access: Wi-fi

Amenities

Total number of rooms / Wheelchair accesible rooms / Number of suites

JANUARY 30 – FEBRUARY 5, 2012

Other

Mamaison Hotel Le Regina Warsaw ul. KoÊcielna 12, 00-218 Warsaw 22 531-6000/22 531-6001 reception.leregina@mamaison.com www.mamaison.com/leregina

58 2 3

2 140 100 150

€240.0-294.0 €265.0-319.0 €521.0-1,493.0

1 1

✓ -

✓ -

✓ -

✓ -

-

✓ ✓

Free internet access

WND 2004

Marzanna Rutkowska

Monopol ul. Dworcowa 5, 40-012 Katowice 32 782-8282/32 782-8283 monopol@hotel.com.pl www.lhr.com.pl

105 5 3

3 220 120 214

z∏.490.0-560.0 z∏.580.0-680.0 z∏.960.0-1,200.0

2 WND

✓ -

✓ -

✓ ✓

✓ ✓

✓ ✓

Heated floor in the bathroom; discounts at restaurants for guests; 10% discount on purchases at Vinoteka

WND 2003

Roman Dembek

Radisson Blu Centrum Hotel ul. Grzybowska 24, 00-132 Warsaw 22 321-8888/22 321-8889 info.warsaw@radissonblu.com www.radissonblu.com/hotel-warsaw

284 4 27

8 580 400 588

WND WND WND

2 2

✓ -

✓ ✓

✓ -

✓ ✓

✓ ✓

✓ ✓

First Fitness Centre free access

WND 2002

Olof Karlsson

Radisson Blu Hotel Gdaƒsk ul. D∏ugi Targ 19/ Powroênicza, 80-828 Gdaƒsk 58 325-4444/58 325-4455 info.gdansk@radissonblu.com www.radissonblu.com/hotel-gdansk

125 4 9

6 260 200 165

z∏.320.0-450.0 z∏.360.0-490.0 z∏.750.0-900.0

1 1

-

✓ -

✓ ✓

✓ ✓

✓ ✓

✓ WND

Fitness center

60 2009

Maciek Miazek

Radisson Blu Hotel Kraków ul. Straszewskiego 17, 31-101 Kraków 12 618-8888/12 618-8889 info.krakow@radissonblu.com www.radissonblu.com/hotel-krakow

196 5 19

8 313 150 134

€110.0-220.0 €110.0-220.0 €220.0-320.0

2 1

-

✓ -

✓ -

✓ ✓

✓ ✓

✓ ✓

Free internet access; hotel taxi; two-level underground parking; public transport stops near the hotel; Park Planty near the hotel; view of the Wawel Castle and the Old City from the hotel windows; Buffet Surf&Turf; breakfast Grab&Run; Super Breakfast; bicycles available to guests

80 2003

Nino Rosenlund

Radisson BLU Hotel Wroc∏aw ul. Purkiniego 10, 50-156 Wroc∏aw 71 375-0000/71 375-0010 reservations.wroclaw@radissonblu.com www.radissonblu.com/hotel-wroclaw

157 2 5

9 410 140 126

€65.0-145.0 €70.0-160.0 €170.0-265.0

1 WND

-

✓ -

✓ ✓

✓ -

✓ ✓

✓ ✓

✓ ✓

Free internet access

85 2002

Martin Mante

Sheraton Kraków Hotel ul. PowiÊle 7, 31-101 Kraków 12 662-1000/12 662-1100 krakow@sheraton.com www.sheraton.com/krakow

224 3 8

8 422 300 310

WND WND WND

1 2

✓ -

✓ -

✓ ✓

✓ ✓

✓ ✓

✓ ✓

Link@Sheraton; clubbing floor; concierge

WND 2004

Sheraton Poznaƒ Hotel ul. Bukowska 3/9, 60-809 Poznaƒ 61 655-2000/61 655-2001 gss.poznan@sheraton.com www.sheraton.pl/poznan

167 3 13

6 292 200 416

From z∏.360.0 From z∏.360.0 From z∏.610.0

2 WND

✓ -

✓ -

✓ -

✓ -

✓ ✓

✓ ✓

✓ ✓

Safe in each room; cable TV; coffee and tea set; ironing board; openable windows; Sheraton Fitness free access; laundry services; luggage storage; club floor

WND 2006

Marco Foelske

Sheraton Sopot Hotel, Conference Center & Spa ul. Powstaƒców Warszawy 10, 81-718 Sopot 58 767-1000/58 767-1001 sopot@sheraton.com www.sheraton.pl/sopot/

189 2 7

10 1,209 650 1,000

z∏.950.0 z∏.990.0 WND

2 WND

✓ -

✓ -

✓ -

✓ ✓

✓ ✓

✓ ✓

Safe in each room; cable TV

WND 2008

Iva Trifonow

Sheraton Warsaw Hotel ul. B. Prusa 2, 00-493 Warsaw 22 450-6100/22 450-6200 warsaw@sheraton.pl www.sheraton.pl

326 WND 24

12 WND 650 1,163

WND WND WND

4 2

-

✓ -

✓ -

✓ -

✓ ✓

✓ WND

Safe in each room; cable TV; ATM

WND 1996

Thomas Schoen

Sofitel Grand Sopot ul. Powstaƒców Warszawy 12/14, 81-718 Sopot 58 520-6000/58 520-6099 H3419-AM@sofitel.com www.sofitel-grand-sopot.com

125 2 2

5 440 240 450

€136.0-336.0 €158.0-358.0 €345.0-495.0

1 1

✓ -

✓ -

✓ -

-

✓ ✓

✓ -

✓ -

Casino; safe in each room; free access to wellness center (swimming pool; sauna; gym); MYBed Concept; SPA; ATM; private beach

WND 1927

Patrick Carabin

Sofitel Warsaw Victoria ul. Królewska 11, 00-065 Warsaw 22 657-8011/22 657-8057 H3378@sofitel.com www.sofitel-victoria-warsaw.com

290 3 53

15 1,170 700 800

From €90.0 From €110.0 From €127.0

1 1

✓ -

✓ -

✓ -

✓ ✓

✓ ✓

✓ ✓

WEB Radio; florist; free wireless internet access

200 1976

Warsaw Marriott Hotel Al. Jerozolimskie 65/79, 00-697 Warsaw 22 630-6306/22 830-0311 mail@marriott.com.pl www.marriotthotels.com/wawpl

518 -

11 1,652 700 -

z∏.285.0 z∏.369.0 z∏.525.0

4 3

✓ -

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

-

330 1989

Albert Helms

The Westin Warsaw Al. Jana Paw∏a II 21, 00-854 Warsaw 22 450-8000/22 450-8111 warsaw@westin.com www.westin.com

357 WND 4

11 WND 560 1,294

WND WND WND

1 1

-

✓ -

✓ -

✓ -

✓ ✓

✓ -

Safe in each room; cable TV

WND 2003

Stephan Sieberg

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

Rates including breakfast: Single / Double / Suite

Notes: Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for The List was done in January 2012. Number of employees and ownership structure are as of December 2011 unless stated otherwise. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Number of employees / Year founded

Manager / Title

General Manager

Director

General Director

General Director

General Manager

General Director

Stijn Oyen General Director

General Director

General Director

General Director

General Director

Jean-Michel Lathuilliere General Director

General Director

General Director

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


20

MARKETS

www.wbj.pl

JANUARY 30 – FEBRUARY 5, 2012

Stocks report

world stock indices DJIA

NASDAQ

11,989.83 (Jan 26 close)

S&P500

2,805.28 (Jan 26 close)

-5.02% (for the week)

FTSE100

1,318.43 (Jan 26 close)

0.61% (for the week)

DAX

5,795.20 (Jan 26 close)

0.30% (for the week)

0.94% (for the week)

Stocks edge higher

NIKKEI225 6,539.85 (Jan 26 close)

8,849.47 (Jan 26 close)

1.93% (for the week)

2.43% (for the week)

CHANGE: -3.29%

CHANGE: 5.91%

CHANGE: 3.24%

CHANGE: 1.67%

CHANGE: 7.64%

CHANGE: 3.38%

(year to Jan 26)

(year to Jan 26)

(year to Jan 26)

(year to Jan 26)

(year to Jan 26)

(year to Jan 26)

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

Andrew Nawrocki, WBJ market analyst It was another strong week for most European bourses, with the Warsaw Stock Exchange’s WIG index maintaining bullish momentum from the week prior. Monday saw investors push stock prices higher, with banking stocks continuing their impressive gains, led by BRE (3.3 percent) and PKO BP (2.5 percent). Additional signs of progress on a Greek debt restructuring deal fueled optimism, leading the WIG to close 0.36 percent higher, while the blue-chip WIG20 gained 0.21 percent. Stocks on the WSE closed broadly lower on Tuesday and Wednesday, ending a six-day run. News that euro-zone finance ministers rejected an offer made by private creditors to help restructure Greece’s debt sent shares lower. Shares

Major indices WIG

39,288.13 (January 26 close)

WIG20

2,244.38 (January 26 close)

26.01

25.01

24.01

23.01

20.01

19.01

18.01

17.01

16.01

13.01

12.01

11.01

10.01

26.01

25.01

24.01

23.01

20.01

19.01

18.01

17.01

16.01

2,100

13.01

37,000

12.01

2,160

11.01

37,800

10.01

2,220

09.01

38,600

05.01

2,280

04.01

39,400

03.01

2,340

02.01

40,200

30.12

2,400

29.12

41,000

09.01

52-week low: 2,089.84

05.01

Change year to January 26: 2.29%

04.01

52-week low: 36,549.47

03.01

52-week high: 2,932.62

Change year to January 26: 2.53%

02.01

Change for the week: 3.57%

30.12

52-week high: 50,371.74

29.12

Change for the week: 3.22%

Top 5 ODLEWNIE PRIMAMODA KOMPUTRON DECORA DROP

Closing 2.07 5.70 7.20 11.76 13.00

% change (week) 52-week high 47.86 3.19 38.35 9.33 37.14 10.95 32.58 20.98 25.00 37.20

52-week low 1.12 3.31 3.66 7.01 7.00

Top 5 GTC BRE LOTOS TVN PKOBP

Closing 10.15 295.50 26.04 10.75 34.95

% change (week) 14.82 12.36 7.87 6.97 4.67

52-week high 21.79 357.90 49.50 18.53 46.66

52-week low 7.86 203.30 21.30 8.90 27.95

Bottom 5 NTTSYSTEM ABMSOLID ALTERCO ANTI PEMUG

Closing 0.65 2.33 37.39 0.83 0.93

% change (week) -24.42 -11.07 -10.76 -10.75 -9.71

52-week low 0.41 1.49 29.20 0.76 0.93

Bottom 5 GETIN PGNIG TAURONPE CEZ POLIMEXMS

Closing 2.22 3.74 5.27 128.00 1.73

% change (week) -6.72 -4.35 -1.86 -0.70 0.00

52-week high 15.29 4.65 6.81 155.00 3.92

52-week low 2.01 3.25 4.65 116.10 1.19

52-week high 1.13 15.10 47.98 2.75 1.48

Currency report

The Fed helps the markets

Other indices sWIG80

9,235.92 (January 26 close)

WIG-Banki

5,913.59 (January 26 close)

26.01

25.01

24.01

23.01

20.01

19.01

18.01

17.01

16.01

13.01

12.01

11.01

10.01

26.01

25.01

24.01

23.01

20.01

19.01

18.01

17.01

16.01

13.01

5,200

12.01

40.0

11.01

5,360 10.01

40.4

09.01

5,520

05.01

40.8

04.01

5,680

03.01

41.2

02.01

5,840

30.12

41.6

29.12

6,000

09.01

52-week low: 4,944.19

05.01

Change year to January 26: 6.68%

04.01

52-week low: 40.00

03.01

52-week high: 7,387.49

Change year to January 26: -0.46%

02.01

Change for the week: 4.84%

30.12

52-week high: 61.29

29.12

Change for the week: 0.41%

42.0

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

26.01

25.01

24.01

23.01

20.01

19.01

18.01

17.01

16.01

52-week low: 8,218.71

13.01

10.01

09.01

05.01

26.01

25.01

24.01

23.01

20.01

19.01

41.30 (January 26 close)

52-week high: 12,932.00

SOURCE: WSE

NewConnect

18.01

17.01

16.01

8,400

13.01

2,100

12.01

8,580

11.01

2,160

10.01

8,760

09.01

2,220

05.01

8,940

04.01

2,280

03.01

9,120

02.01

2,340

30.12

9,300

29.12

2,400

04.01

Change year to January 26: 7.34%

03.01

52-week low: 2,076.52

02.01

Change year to January 26: 6.05%

30.12

Change for the week: 2.95%

29.12

52-week high: 2,987.72

12.01

2,322.79 (January 26 close)

11.01

mWIG40 Change for the week: 3.17%

that saw active trading on both days included those of Bogdanka, fluctuating wildly after rumors surfaced of a possible take-over by Enea, Poland’s leading energy supplier. For the two days, the WIG closed 0.30 percent lower, while the WIG20 shed slightly more than half a percent. On Thursday the bulls attacked once again, sending shares higher throughout Europe, with both the WIG and WIG20 closing more than 2 percent higher. News that the US Federal Reserve would keep interest rates at near-zero levels until the end of 2014 was welcomed by investors. Finally on Friday Polish stocks performed well until mid-afternoon, after data released in the US showed relatively poor GDP growth. ●

Market uncertainty is being caused by Greece’s ongoing talks with private investors to restructure its debt, while Portugal is also facing hard times with bond yields at historic highs. But despite uncertainties, at a time when investors cannot count on the euro zone, the Federal Reserve has come to the rescue. In a statement released last week, the Fed said that US interest rates will remain at historic lows until 2014, thus helping to restore confidence in the markets. This means that lower financing will be available for companies. The reaction of stock markets was immediate, with currencies also getting a boost. The EUR/USD continued its climb, which began in mid-January, advancing all

the way to $1.3175 last week. By the end of the week, the EUR/USD had declined slightly but remained above the $1.31 level. The z∏oty’s appreciation was caused by decreased risk aversion and optimism on financial markets. More comments regarding interest rates emerged when the NBP’s Andrzej Bratkowski said that there will not be any changes in monetary policy in the first half of 2012. On the other hand, the NBP’s minutes showed that in the case of higher GDP growth and inflation, a hike is still possible. The EUR/PLN declined to z∏.4.22, its lowest since September of 2011, at the end of the week while the USD/PLN tested the z∏.3.21 level (lowest since November of 2011). ●

currency rates 4.2234

4.1607

24.01

25.01

26.01

27.01

4.2640

23.01

SOURCE: NBP

4.3442

4.3310

20.01

0.1065

0.1060 27.01

4

4.1801

PLN-100JPY

5

26.01

0.1075 25.01

0.1066 24.01

23.01

0.1068 20.01

3.5147

3.4966 27.01

0.10

0.1067

PLN-RUB

0.12

26.01

3.5453 25.01

3.5819

3.5545 24.01

23.01

3.0

20.01

5.0551 27.01

5.0588

3.5

3.5707

PLN-CHF

4.0

26.01

5.1385 25.01

5.1224 24.01

23.01

5.1839 20.01

3.2233

3.2163 27.01

5

5.1872

PLN-GBP

6

26.01

3.299 0

25.01

3.2970 24.01

3.3353

PLN-USD

23.01

3.3537 3.0

20.01

4.2223 27.01

4.2431

3.6

26.01

4.2855 25.01

4.2885 24.01

23.01

4.3260 20.01

4

4.3111

PLN-EUR

5


SPORTS

JANUARY 30 – FEBRUARY 5, 2012

www.wbj.pl

21

National Stadium

Sponsorship

Polish National Stadium official opening approved

Kraków-based Oknoplast to sponsor Inter Milan

COURTESY OF WIKIMEDIA COMMMONS

As WBJ went to press, Poland’s new National Stadium was set to officially open on Sunday, January 29, after the stadium’s operators secured a mass-event permit from Warsaw City Hall. Earlier in the week there were real concerns that the stadium’s first public event, a free concert, would be postponed due to safety issues. Ewa Gawor, a spokesperson for Warsaw City Hall, had said in a statement that “due to the two negative reviews from the fire and safety inspectors, the decision was made not to conduct this event.”

COURTESY OF WIKIMEDIA COMMONS

The stadium’s operator finally received a safety permit from Warsaw City Hall last Friday

Inter Milan captain Javier Zanetti

The stadium’s first match is meant to be the Polish SuperCup Final on February 11 But last Thursday the fire service declared the stadium fit for use, paving the way for City Hall to issue the permit. Daria Kuliƒska, the National Stadium’s spokesperson confirmed to WBJ that the

event would go ahead. Sunday’s concert, “Here I Am!” was due to be free to the public and was set to feature Polish musicians VooVoo and Haydamaky, Zakopower, Coma, T. Love, and Lady

National Stadium Location: Al. Ksi´cia J. Poniatowskiego 1, Warsaw Capacity: 58,145 Profile: Located on the former site of the 10th-Anniversary Stadium (Stadion Dziesi´ciolecia), in the capital’s Praga district, the National Stadium is the largest of the four Polish Euro 2012 venues, with a capacity of almost 60,000. The stadium’s retractable roof, which unfolds from a nest suspended above the center of the pitch, will ensure events are unaffected by rain and other adverse weather conditions. In addition to hosting five games during next summer’s Euro 2012 tournament, the stadium’s operators have also managed to attract the British band Coldplay, who will perform there on September 19, 2012. Euro 2012 games: Poland v Greece, June 8; Poland v Russia, June 12; Greece v Russia June 16; Quarter-final game, June 21; Semi-final game, June 28 ●

Poland’s handball team failed to make it to the semi-finals of the European Handball Championships in Belgrade last week, despite a dramatic 33-32 win over Germany. The Eagles, who are coached by Bogdan Wenta, widely recognized as one of Poland’s best-ever handball players, had to beat the Germans and hope other results went their way in order to claim one of the top two positions in Group 1 and maintain hopes of a medal. Micha∏ Jurecki scored a last-minute winner for the Poles, but unfortunately the other two games ended with unfavorable results for Poland. The hosts, Serbia, lost to Macedonia 19-22, while in a Scandinavian derby, Denmark beat Sweden 31-24 to finish second in the group behind first-placed Serbia.

David Ingham

Polish window manufacturer Oknoplast has signed an agreement to become a sponsor of Italian Serie A club Inter Milan. The deal with the 20092010 Champions League winners will see the Kraków-based company become a sponsor until June 2013. “I’m a fan of soccer, and the Italian market is Oknoplast’s largest export market,” company CEO Miko∏aj Placek

told journalists, explaining the reasons behind the investment. Mr Placek added that the Polish company beat five other international firms to secure the deal, although he declined to reveal the value of the contract. Oknoplast’s name will not be appearing on Inter Milan’s shirts. “We will advertise during games and on the club’s website,” Mr Placek said. As WBJ went to press, Inter Milan was in fourth place in Italy’s Serie A table, six points behind leader Juventus. David Ingham

CRACOW – “The Lwowska 10 apartments” – the highest rate of return. • “Buy and earn” – exclusive apartments with surface areas ranging from 24 m2 to 121 m2 • Great location near Kazimierz • Guaranteed income from the rental of the apartment in the SUN & SNOW system • Possibility of a VAT refund on the purchase of the apartment • Free-of-charge use of the apartment at any time

COURTESY OF WIKIMEDIA COMMMONS

Wenta’s Eagles fail to make semi-finals

Pank, before culminating in a fireworks display. However, the first soccer match at the new stadium, the Polish SuperCup Final between Legia Warsaw and Wis∏a Kraków, is still under threat. City Hall currently looks unlikely to award the stadium’s operators a permit for the game, scheduled for February 11, due to issues related to the pitch.

The Polish windowmaker will sponsor the Italian soccer giants until June 2013

Micha∏ Jurecki scored the winner against Germany In the end it was a disappointing night for Poland, who eventually finished second to last in its group, level on points with Germany and Macedonia but with an inferior goal difference.

Now, Poland has to wait and hope that Serbia fails to win the tournament, as victory for the Serbs would mean Poland can no longer qualify for this summer’s Olympics. Marcin Lojewski

Seller: Rudnicka&Consulting: ul. Fucika 5, Warsaw tel. +48 530 626 279, e-mail: biuro@lwowska10.pl WWW.LWOWSKA10.PL


22

LIFESTYLE

www.wbj.pl

Musical

JANUARY 30 – FEBRUARY 5, 2012

Concert

Weird science in Ochota Sting’s greatest hits The Rocky Horror Show February 14-17, 7:30 pm Och-teatr ul. Grójecka 65 Warsaw

up meeting a mad transvestite scientist called Frank ‘N’ Furter who subsequently unveils his new creation: a muscle man named Rocky Horror. David Ingham

Tickets for the four day run are priced from z∏.35.

The Rocky Horror Show

COURTESY OF OCH-TEATR

COURTESY OF WIKIMEDIA COMMONS

Premiering in London back in 1973, Richard O’ Brien’s “The Rocky Horror Show” has gone on to become one of the most

successful musicals of all time, with almost 3,000 performances in the UK alone, and numerous interpretations throughout the world. This musical tells the story of a newly engaged couple, Brad and Janet, who, having gotten caught in a storm, end

Sting

Sting: Back to Bass February 15 PKiN Sala Kongresowa Place Defilad 1 Warsaw Sting, the former frontman and bassist for The Police, is coming to Warsaw this February as part of a tour to celebrate 25 years as a solo artist. Sting, whose real name is Bernard Sumner, will per-

form tracks from his full back catalog, including “Fields of Gold,” and “English Man in New York,” as well as classic Police hits such as “Roxanne” and “Every Breath You Take.” Since officially splitting from the band in 1986, Sting has gone on to release 10 solo albums, including 1993’s multi-platinum “ … Nothing

Like the Sun.” Sting’s current tour, which has already been to North America, has received rave reviews, with the Toronto Star referring to the show as “a sonic adventure that revisits past triumphs and explores some lesser-known DI gems.” For more information log on to kongresowa.pl

Concert

Galaxy of sound Poland A.M. gives you the biggest Polish stories of the day. Have the most valuable news delivered to your inbox each weekday morning.

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

French electronic group M83, named after the spiral galaxy Messier 83, was formed back in 2001 by main member Anthony Gonzalez. The group is

COURTESY OF WIKIMEDIA COMMONS

DAILY EXECUTIVE DIGEST

M83 February 19, 8 pm Stodo∏a ul. Batorego 10 Warsaw

M83

coming to Warsaw this February to promote its sixth album, “Hurry Up, We’re Dreaming,” which was released in October 2011. According to Anthony Gonzalez, the group’s latest offering is the fruit of his fascination with such classic albums as The Beatles “The

White Album” and “Mellon Collie And The Infinite Sadness,” by The Smashing Pumpkins. The new album was produced by Justin Meldal-Johnsen who has also worked on records by such diverse artists as Beck, Nine Inch Nails and The Mars DI Volta.


LAST WORD

JANUARY 30 – FEBRUARY 5, 2012

www.wbj.pl

23

Tech Eye

ing wind has drawn all the moisture from Techeye’s trembling frame, afflicting us with a rare condition known as “dry ass,” a torturous chapping of the posterior. No amount of moisturizer relieves it. Not even aloe vera. And so, like a fellow we knew in university who proclaimed himself “god-emperor of Taco Bell,” adorning himself with a crown of refried beans shortly before he was restrained by kindly men in white coats, Techeye is wrestling with depression. Unlike that fool, however, we’re going to self-medicate with something more useful than Mexican-inspired fast food. Something like the Valkee lightemitting earplugs (valkee.com), for example. These are not to be confused with Valkea, publisher of Warsaw Business Journal, which has been scientifically proven to cause melancholy in kittens. No, the Valkee – which is made by a company of the same name – is a curious device that channels bright light into your ears, which, in principle, makes your brain less depressed. Does it work? We have no idea, but the Valkee was designed by a former Nokia engineer, has been clinically tested and is CE-certified as a Class II medical device, so it’s unlikely to fry your brain, provided you stick to the prescribed eight to 12 minutes a day. And its maker claims it works for PMS, job stress and seasonal affective disorder. On the other hand, it seems a bit cheeky to ask €185 for something you can effectively duplicate by strapping a pair of flashlights to your head. Thus we’re looking into other potential cures for the winter blues, such as Steampunk Lamp #6 from Hardwick Housewares (hardwickhousewares.com). Sure, it isn’t CEcertified as a medical device, but neither are jumper cables or car batteries and that’s never stopped Techeye from using them to improve our mood. Besides, steampunk = win.

Hardwick Housewares is an artisan outfit, meaning they work on commission, and we have no idea what their prices are like. It looks like they’re up to #8 and #9 in the lamp series; other projects include a steampunk floor lamp, an iPod dock and an impressively energy-inefficient clock. If you’re interested, contact details are on their website. Last up this week is something that marks a new low first for Techeye – glow-in-the-dark undies. These tantalizing textiles from LuminoGlow Lingerie (luminoglow.com) will not only brighten up the interminable winter nights, but they’re also guaranteed to earn any man a high-five from his mates at work.” We’re not convinced by the company’s claim that “the woman wearing LuminoGlow is sophisticated and

cosmopolitan,” but those aren’t personality traits that men usually look for in a lingerie-clad woman inhabiting a darkened room, so it doesn’t really matter. More interesting is the knowledge that LuminoGlow garments come in silk, lace and microfiber, with prices generally ranging from €16-26 (baby dolls €37). Silken unmentionables that glow in the dark may be a genius concept, but the LuminoGlow line isn’t perfect. There are no plussized options and, in a glaring omission, there are no garments designed for men. In other words, if you’re in the market for a luminescent man-thong, you’re out of luck with LuminoGlow. And that somehow makes the shadow of winter seem that much longer. ●

Ever suffered acute chapping of the posterior? Let us know: techeye.wbj@gmail.com

To advertise in WBJ’s classifieds section, contact Ms Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl

COURTESY OF LUMINOGLOW LINGERIEX

The exquisite bleakness of winter has been weighing on Techeye of late, much as the unborn press ruthlessly down on their mothers’ bladders – save that in our case it’s sanity, rather than urine, which threatens to leak out and stain the couch. Everything appears grim, dreary. Endless oppressive days, lit only in shades of dishwater and granite, are succeeded by stygian nights and dreams of ravens with teeth that gnash and sparkle with lost souls. And the wind! The howl-

COURTESY OF HARDWICK HOUSEWARES

COURTESY OF VALKEE

Darkness, depression and glowing undies



WBJ #4 2012