WBJ #35 2012

Is Mexican tycoon Carlos Slim planning on entering Poland’s telecoms market?

6

Opinion: Barroso on European integration

8

WWW.WBJ.PL

Special Krynica Economic Forum Edition

VOLUME 18, NUMBER 35 • SEPTEMBER 3-9, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Finding the funding COURTESY OF HB REAVIS

REAL ESTATE

• HB Reavis’ new Warsaw offices • Developers’ H1 profits • Real estate financing 15-19

Interview: Tomasz Siemoniak

WBJ presents a special section on investment financing, including: • EU funds • Private equity • EBRD-funded projects 10-13

Poland’s defense minister talks army modernization and Poland’s place in NATO 20-21

In this issue

Fool’s gold Opposition parties have turned the Amber Gold saga into a political issue 3, 8

Adieu, Carrefour?

The company’s new CEO says its presence in Poland “needs reflection” 5

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Opinion & Analysis . . . . . . . . . . . . .8 Investment Financing . . . . . . .10-13 Lokale Immobilia . . . . . . . . . . .15-19 Interview . . . . . . . . . . . . . . . . . .20-21 The List . . . . . . . . . . . . . . . . . . .22-23 Markets . . . . . . . . . . . . . . . . . . . . . .24 Sports . . . . . . . . . . . . . . . . . . . . . . .25 Lifestyle . . . . . . . . . . . . . . . . . . . . .26 Last Word . . . . . . . . . . . . . . . . . . . .27

NEWS

www.wbj.pl

2012. The country scored 0.3 on a scale of 0 to 1, where 1 is the most innovative.

z∏.60.2 million was the net profit earned by the Warsaw Stock Exchange in the first half of 2012, down 15.7% yearon-year.

6 that’s by how many years longer the average Pole lives than he did 20 years ago, according to Central Statistical Office data.

Between September 4 and 6, European politicians and business leaders will gather at the 22nd Economic Forum in the spa resort town of Krynica Zdrój, in southern Poland.

Under the title, “New Visions for Hard Times – Europe and the World Confronting the Crisis,” leaders will discuss current models of integration, the economic system, and the substantial reforms required to tackle the ongoing economic crisis.

This year, Polish President Bronis∏aw Komorowski is set to open the forum, while Prime Minister Donald Tusk will close the event. Mikulas Dzurinda, the former Prime Minister of Slovakia, will also be in attendance, as will for-

Textbooks still paper

so far done a good job of putting the spotlight on Poland’s informal leadership of the CEE region, and providing a forum for discussion of regional economic issues.

Despite complaints in the past about the conference being both difficult to access and it being located too far away from Warsaw for a twoday conference, organizers have stuck with Krynica as the venue. The town itself is a picturesque resort located in the Beskidy Mountains.

To access detailed information regarding the times, dates, and places of particular discussion panels, forums, and lectures, see forum-ekonomiczne.pl.

Izabela Depczyk

z∏.300 million is the amount by which Poles’ savings fell in the first quarter of 2012, according to the National Bank of Poland.

Quote of the Week “The atmosphere has changed.”

President of the National Bank of Poland Marek Belka, explaining that the interest-rate setting Monetary Policy Council, which he heads, is now considering cutting rates rather than raising them. The comments followed a raft of woeful macroeconomic data. In May the council raised interest rates in response to high levels of inflation.

Figures in focus Purchasing powers Adjusted net disposable income in purchasing power standard* per capita, selected countries 30,000 25,000 20,000

On WBJ.pl Rating Poland

DATELINE ECONOMIC FORUM

20

POLISH OUTSOURCING FORUM

Event:

Event:

Organized by Roadshow Poland and Aspire, the Polish Outsourcing Forum will present the latest trends in the outsourcing market in Poland and abroad and will feature representatives from business, government and media.

Hyatt Hotel, Warsaw roadshowpolska.pl

Web:

The Economic Forum in Krynica, Poland, is one of the most important economic conferences in Central and Eastern Europe. Each year the forum is attended by some 2,500 guests – including leaders in the fields of politics, economics and society.

Krynica Zdrój forum-ekonomiczne.pl

30

34TH WARSAW MARATHON

9

DANONE NATIONS CUP

Event:

Event:

Some of the best young (U-12) soccer players from 40 countries will play on the pitch of the National Stadium in Warsaw for the 13th edition of the World Final of the Danone Nations Cup. The international ambassador of the event, Zinedine Zidane, will also be present. All ticket sales proceeds will go to the “Share Your Meal” program.

National Stadium, Warsaw danonenationscup.pl

The annual Warsaw Marathon will raise funds for the Bátor Tábor Polska Foundation, an organization that offers therapeutic camping opportunities to children with chronic diseases in Central and Eastern Europe.

Organized by Kompania Wra˝eƒ, the marathon route will travel through Warsaw’s key landmarks, including the Old Town.

Warsaw kompaniawrazen.pl

Web:

US

an y Lu xe mb ou rg

nc e

0

Source: Eurostat

*Note: The purchasing power standard (PPS) is the name given by Eurostat to the artificial currency unit in which the purchasing power parities and real final expenditures for the EU 25 are expressed – namely, euros based on the EU 25 (Source: OECD).

Acanthus ....................................12 Fiat..............................................13 Peakside Polonia

4-6

Location:

5,000

Company index

September

Location:

15,000 10,000

In times of high volatility on global markets, credit ratings agencies’ opinions of national economies can make the difference between prosperity and bankruptcy. What kind of impact do credit rating agencies have on the Polish economy? Log on to WBJ.pl to find out.

Wave of Ukrainian immigration?

The Ukrainian government is concerned that a new law on citizenship which took effect in Poland on August 15 may result in a wave of emigration, reports Rzeczpospolita.

The law allows dual citizenship and simplifies the procedure of acquiring Polish citizenship by foreigners.

According to assessments made by authorities in Kiev, there are around 30,000 Ukrainians legally working in Poland who could apply for Polish citizenship. ●

mer President of the European Parliament Jerzy Buzek, former President of Ukraine Viktor Yushchenko, current Lithuanian President Dalia Grybauskaite and the high representative of the Alliance of Civilizations at the UN, Jorge Sampaio.

Launched in 2000 by the Foundation Institute for Eastern Studies, the Krynica Forum brings together decision makers to address economic issues with a focus on Central and Eastern Europe and its relationship with the European Union. It offers indepth analysis of regional trends made by leading businesspeople, as well as top-tier networking opportunities.

The Economic Forum has

Ge rm

Despite numerous announcements during the past year regarding e-books for schools, this year textbooks will still be made of traditional paper. The Ministry of Education is having a hard time selecting a partner to prepare 18 etextbooks for which it has put aside z∏.45 million, reports Puls Biznesu.

th 44 was Poland’s position in the Global Innovation Index

UK

Health Minister Bartosz Ar∏ukowicz has approved the financial plan of the National Health Fund (NFZ) for 2013. The Fund’s revenues will total z∏.66.7 billion, of which 96% will come from state-run social security fund ZUS and health premiums from the Agricultural Social Insurance Fund (KRUS). The NFZ will allocate z∏.63 billion for health services across the country. In 2013, the regional branches of the Fund will have more money available than last year.

22 Economic Forum in Krynica Zdrój

Fra

NFZ budget approved

Numbers in the News

nd

tvi a Gr ee ce Hu ng ar y Po lan Cz ec d hR ep ub lic

Poles live on average six years longer than 20 years ago, according to data from the Central Statistical Office. Men now live up to 72.4 years and women 80.9. That’s respectively 6.5 years and 5.8 years longer than in 1991. Life expectancy varies according to regions, with residents of the eastern Podkarpackie voivodship, one of the poorest in the country, living longer than their compatriots.

IN THE SPOTLIGHT

La

Poles live longer

SEPTEMBER 3-9, 2012

COURTESY OF THE ECONOMIC FORUM

2

Location: Web:

Agora ..........................................13 GD&K Group ..............................15 Management ..............................15 AgustaWestland ..........................4 Globe Trade Centre....................16

Peter Nielsen & Partners ..........6 Allied Irish Banks ......................15 HB Reavis ..................................15 Amber Gold ..............................3, 8 America Movil ..............................6 Apple ..........................................27 Asseco ..........................................6

Location: Web:

Pekao..........................................16

AIB PPM ....................................15 Hawe ............................................6

Aston Martin ..............................26

PKO BP ......................................16 HB Reavis Poland ......................15 Hermanowicz

Play ..............................................6

Rewski Architekci ......................15 PMR ..............................................5 Hilton ..........................................16 PNO Consultants Poland ..........13 Isuzu ..........................................13 Polimex ........................................3

Bank Zachodni WBK..........3, 7, 12 Jones Lang LaSalle ..................16 BBI Development NFI................15

Polish State Railways ................15

Keralla Research ........................5 Polonia Property Funds ............15

Biedecki........................................7 KPMG..........................................10 Brand Finance, America..............3

Robyg..........................................17 KPN ..............................................6

Brand Poland ..............................3 Liebrecht & Wood ......................15

Russian ViS Construction Group 3

BRE Bank ....................................3 Carrefour......................................5 Carrier ........................................15 CBRE ..........................................15 Citi Handlowy ..........................3, 7 Citibank ........................................7

Marvipol......................................15 Samsung ....................................27 Maserati ....................................26 Sikorsky Aircrft ............................4 Mercedes....................................26 Syntaxis Capital..........................12 Mokate........................................13

TK Telekom ..................................6

Nordea........................................16 Union Investment Real Estate ..19

Cushman & Wakefield ..............16 OLT Expres ..................................3

Correction: The article “Charity volleyball event a fundraising success” published on August 20, 2012, incorrectly stated that the Friends of Litewska Children’s Hospital Foundation received z∏.4,000 of the money raised during the event. The foundation actually received a total of z∏.74,000 (z∏.72,000 of which came directly from the event).WBJ regrets the error.

UTC Group..................................15 DGA ............................................13 Opel ............................................13 Dom Development ....................17 OTIS ............................................15

Virgin Group ................................6

Euro Styl ....................................16 Partners Group ..........................15 Virgin Mobile Polska ....................6 Famur ........................................13 Peakside Capital ........................15 X-Trade Brokers DM ..................24

NEWS

SEPTEMBER 3-9, 2012

www.wbj.pl

Politics

Amber Gold saga becomes political issue In an address to Poland’s parliament last week, Prime Minister Donald Tusk criticized prosecutors who had ignored warnings from the Polish Financial Supervision Authority about Amber Gold, a now infamous “parabank,” that had attracted clients with promises of high returns on investments in gold-indexed instruments.

Amber Gold went bankrupt in August, and its president faces seven different charges, including fraud.

Poland’s financial authority had issued warnings as early as 2009 on the firm, now thought to have been a Ponzi scheme.

“We need to look into all those [legal] institutions, into all their commissions, and we need to take definitive steps to reprimand all those people who failed at carrying out their job correctly,” Prime Minister Tusk said.

Mr Tusk added that the Prosecutor General’s position needs to be strengthened. “We will equip the Prosecutor Gen-

eral or another institution, maybe a court, with instruments that will be able to effectively discipline prosecutors and force them to behave properly.”

His comments came after Prosecutor General Andrzej Seremet criticized prosecutors in the city of Gdaƒsk, where Amber Gold was headquartered, who failed to react despite numerous complaints about the company and its business activities.

The affair also took on additional political overtones when it emerged that the prime minister’s son, Micha∏ Tusk, had held a position at OLT Express, a low-cost airline that declared itself insolvent in July and which was backed by Amber Gold.

Amber Gold’s owner, Marcin P. (Polish law forbids the release of the full names of those against whom charges have been brought), was arrested on August 30 and will remain in detention for three months. The arrest followed a

request made by the Gdaƒsk district prosecutor’s office.

Marcin P. was charged with defrauding nearly 3,000 customers of at least z∏.180 million last week, in addition to the previous list of six charges of financial wrongdoing (including illegally providing banking services) brought against him earlier in August.

According to prosecutors, instead of investing customer’s savings in gold, as Amber Gold claimed it was doing, the company used funds from new clients to pay off previous clients.

You’re just fudging Jaros∏aw Kaczyƒski, leader of Poland’s largest opposition party Law and Justice, wasn’t satisfied with Mr Tusk’s take on the matter. He said the prime minister didn’t answer the most important questions regarding Amber Gold and tried to “fudge” the affair, insisting that a special parliamentary commission be established to investigate the matter.

“It is obvious that there should be a parliamentary commission and those who are against will have simply admit-

The economy

Slowdown begins to take hold A series of negative data, including Q2 GDP growth well below expectations, signals bleak prospects for Poland's economy The Polish economy has started showing signs of a sharp slowdown, with most economic indicators offering plenty of reason for worry. Perhaps the most troubling sign came with the release of second-quarter economic growth figures on August 30, which showed Polish gross domestic product grew at an

Ugly figures Second-quarter indicators (year-on-year growth)

2.4% GDP growth

-0.2% Individual consumption

1.9% Fixed investments Source: Central Statistical Office

annualized rate of only 2.4 percent between April and June this year.

The number was well below the market consensus forecast of 2.9 percent, and represented the worst reading since GDP grew by just 1.6 percent back in Q3 of 2009. Poland’s economy grew 4.3 percent in 2011 before slowing to 3.5 percent y/y in Q1 2012.

Domestic demand, fixed investments and individual consumption, also released on August 30, all confirmed a slowdown that looks set to bite hard.

Citi Handlowy chief economist Piotr Kalisz said he expected economic growth of below 2 percent in the last quarter of the year, and saw full-year growth coming in at 2.6 percent.

Economists at BRE Bank were more pessimistic, forecasting GDP growth below 1.5 percent in Q4, and just 2 percent for the whole year.

The bleak Q2 data confirmed that surprisingly high figures for retail sales and manufacturing output in July were not representative of a trend toward higher economic growth.

“In July the higher number of working days was important.

It was probably the best month

in Q3. August data will confirm a slowdown, and September will be worse,” said Bank Zachodni WBK chief economist Maciej Reluga.

Similarly, the positive performance of the Warsaw Stock Exchange since June is not indicative of an upcoming recovery, analysts said.

“The WSE is not a local story. The markets have switched to what is happening in Europe. It doesn’t reflect the strength of the Polish economy,” said BRE Bank chief economist Ernest Pytlarczyk.

“There are no real growth engines and we will not escape a slowdown,” he added. As wage increases stay below the rate of consumer price inflation, the z∏oty picks up and German exports slow down, the engines that sustained Polish growth in 2010 and 2011 are lacking this time around. Also, unlike in 2009, there is no room for [the government to stimulate the market], said Mr Pytlarczyk.

Greece leaving the euro zone – a scenario which seems to grow increasingly likely – would also have a hugely negative effect on the Polish economy, economists said.

Alice Trudelle

Polish brand strong According to a global ranking of the top 100 national brands prepared by consulting firm Brand Finance, America, China and Germany are the countries perceived as being the best brands when it comes to finance, production and tourism.

Poland is gaining importance and has been classified in the top 20, while enjoying eighth position in Europe.

Poland also recorded the highest increase in brand value in the world – by 75%.

Investors interested in Polimex

COURTESY OF KPRM

The scandal surrounding the “parabank” has forced the prime minister to address parliament and given the opposition new tools to criticize his government

3

The opposition has put the heat on Mr Tusk over the Amber Gold affair ted guilt,” said Mr Kaczyƒski.

“Why did the prosecutors, the financial institutions, not do their jobs? Was it an amazing coincidence or maybe something else is behind it?” said Mr Kaczyƒski.

The ruling coalition, headed by Mr Tusk, has already voted down a proposal for a parliamentary commission investigation.

Meanwhile, Prosecutor

General Seremet has admitted that the prosecution made mistakes regarding Amber Gold.

“We are all aware that this should have never happened, we all know today that many people won’t be able to get back what they put into Amber Gold. It is only natural to ask what state authorities can do to prevent this from happening again in the future.”

Remi Adekoya

A number of entities are reportedly showing interest in buying a stake in troubled Polish construction company Polimex. Interested firms include Russian ViS Construction Group, Sopot-based developer NDI, and, unofficially, investor Roman Karkosik.

Two other construction companies – one from France and the other from Turkey – are also said to be considering the deal. ●

4

NEWS

www.wbj.pl

SEPTEMBER 3-9, 2012

Defense spending

Military spending

Army to spend z∏.3 bln on helicopters The aircraft will be “just enough” to meet the army’s needs, experts say

COURTESY OF PZL MIELEC

The Polish army is planning to strengthen its aviation capabil-

ities by purchasing 26 helicopters for the price of z∏.3 billion.

The tender for the new helicopters will be held this autumn.

At least three major players intend to bid for the con-

Sikorsky Aircraft will bid for a contract to provide 26 helicopters for the Polish army

tract: American firm Sikorsky Aircraft, Italian-British AgustaWestland and the French-German Eurocopter.

The firms control about onethird of the market worldwide.

The army plans to order an additional 100 helicopters after 2018, and experts say that the winner of this autumn’s tender would be in a strong position to provide those as well.

Grzegorz Sobczak, editorin-chief of Skrzydlata Polska, an aviation magazine, said the 26 helicopters will be “just enough to deal with the Polish army’s current needs.”

He said the army needs “much more” and hopes some of those needs will be

addressed during the next round of acquisitions.

As to who will win the contract for the 26 helicopters, Mr Sobczak said it depends on the binding criteria.

“If the Defense Ministry is bent on the helicopters being produced in Poland, then Sikorsky Aircraft and Agusta-Westland will be favorites, since they have factories in Poland, while Eurocopter has a minimal presence in Poland.”

He added that Sikorsky Aircraft’s Black Hawk helicopter was the best known and the “most tested” of the helicopters, but that AgustaWestland’s AW149 boasted a “more modern” construction.

The ministry also

Capital investment in Poland's defense budget, 2009-2012 8 7 * Planned 6 5 4 3 2 1 zł.bln

2009

2010

2011

2012* Source: Ministry of Defense

announced early this year that it intends to spend around z∏.1.5 billion on additional engines and equipment, plus ammunition for its F-16s.

The purchase of the new helicopters is part of the government’s plan to modernize the armed forces. Defense Minister Tomasz Siemoniak

told WBJ (see interview, pp.2021), “The Polish Armed Forces are in the process of comprehensive transformation and modernization. Our aim is to make them modern and ready to respond to the challenges of today and tomorrow.”

Remi Adekoya

PZPN elections

Roman Kosecki enters PZPN election race The former international player is aiming to replace Grzegorz Lato as head of the Polish Football Association Civic Platform politician and

former Polish national soccer team striker Roman Kosecki has entered the race to become the new president of the Polish Football Association (PZPN).

“I’m going to claim the seat of the president of the Polish Football Association,” Mr Kosecki said at a press confer-

ence last week.

The former Legia Warszawa player scored 16 goals for Poland during a successful career that also saw him play for Galatasaray, Osasuna, Atletico Madrid and the Chicago Fire. But commenting on the footballing ability of the man

currently in charge of PZPN, Grzegorz Lato, Mr Kosecki was happy to concede that the current PZPN president was by far the better player.

“He [Mr Lato] was my idol as a player, I always wanted to imitate him. It did not work out, because he was a better soccer

player. But the image of what he created at the Football Association I do not want to [imitate], I’ll try to improve on it,” he added.

In order to compete in the presidential elections which take place on October 26, Mr Kosecki will need to collect 15 votes

from members of the association by September 25, when the final shortlist will be decided.

“I have had many meetings and it is unlikely to be a problem. I have a plan that I will present … if I get the required support,” Mr Kosecki added.

David Ingham

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BUSINESS

SEPTEMBER 3-9, 2012

Retail market

Carrefour to ‘reflect’ on its future in Poland: CEO

Carrefour CEO Georges Plassat said the company will review its position in Poland, as it thinks of ways to reduce its costs and debt.

At a press conference last Thursday during which he presented the firm’s results, Mr Plassat said that while Carrefour, the world’s secondlargest retailer, must defend its positions in mature markets, as well as in China and Latin America, the business in Poland, among others, will “need reflection,” due to the high levels of competition that the company faces from several other large retailers. He added that in Poland eight retailers had about the same market share.

“We’re keeping the mature countries, we’re going to defend them, other important countries are Brazil and China,” Mr Plassat said. “In certain countries, like Poland, we could adjust our positions.”

Later that same day however, Mr Plassat issued a statement that seemed to run counter to his previous comments, saying “Poland, where the company has a very strong position, will be one of the countries in which [the company] will intensify its presence in different formats.”

WBJ contacted Carrefour to clarify the company’s position regarding the future of its Polish operations.

“The latest statement by Mr Plassat reflects the company’s plans with regards to Poland, so yes, Carrefour will intensify its

presence in Poland,” the company’s spokesperson confirmed.

However, Dominika Kubacka, retail analyst at market research firm PMR, said that it is very possible that Carrefour will leave Poland.

“Carrefour has halted its development in Poland recently, the only thing that it has been investing in is Carrefour Express which is more of a franchise network,” she said. “We haven’t seen any new super- or hypermarkets, so it wouldn’t be such a big surprise if they decided to exit Poland,” Ms Kubacka Izabela Depczyk said.

SHUTTERSTOCK

The retailer later released a statement saying it would intensify its presence in Poland

Carrefour is sending mixed signals regarding its strategy for Poland

Euro 2012

Report finds Polish firms did not benefit from Euro 2012

The expected financial benefits of Euro 2012 did not materialize for many businesses in Poland. In most cases the tournament did not have an influence on businesses’ profits, and, when it did, in many cases this influence was negative, according to a new survey of business owners by Keralla Research.

The tournament did not have an effect on 78 percent of Polish SMEs, while Euro 2012 improved the results of only 10 percent, according to the poll.

The championship caused 11 percent to incur losses, the research institute found.

“Before the tournament, entrepreneurs announced that they expected a strong financial impetus from the tournament. Unfortunately, it turns out they were disappointed,” Izabella M∏ynarczyk, development director at Keralla Research, told Puls Biznesu.

In addition, 60 percent of

respondents said that they did not expect the aftereffects of Euro 2012 to have a beneficial impact on their future export levels. The same proportion also thought the economic situation in Poland had worsened in the last three months.

Katarzyna Pydych, the general director at Keralla Research, said that the disappointment is the result of a three-year-long campaign led by the Polish government, which unduly raised SME owners’ expectations.

“For the past three years,

small, micro and mediumsized businesses have been repeatedly told that the tournament would be an amazing opportunity for growth. In reality many of these enterprises remained unaffected by the tournament, and some even noted losses, due to many locals leaving their cities and towns for the duration of Euro 2012,” she said.

Some 4.7 percent of surveyed business owners said that they remained positive about the current economic situation in Poland.

Izabela Depczyk

COURTESY OF WIKIMEDIA COMMONS

The majority of SMEs failed to see the windfalls that were predicted before the tournament

The tournament had no effect on 78 percent of Polish SMEs

www.wbj.pl

5

6

BUSINESS

www.wbj.pl

SEPTEMBER 3-9, 2012

Telecommunications

The Mexican billionaire could be about to join British tycoon Richard Branson, whose Virgin Mobile service launched in Poland this August The world’s richest man, Mexican businessman Carlos Slim, could be set to enter Poland’s telecommunications market by investing in Polish telecoms infrastructure firm Hawe, as well as mobile company P4.

Mr Slim’s firm, America Movil, is one of four potential investors in Hawe, Puls Biznesu reported in August, citing unnamed sources. The other investors are said to be a second telecommunications company and two private equity firms.

Hawe has stated that it plans to issue between 50 to 100 million new shares in order to raise funds to finance a takeover of state-owned rival TK Telekom, which is currently being privatized.

America Movil has recently purchased stakes in Telekom

Austria and Dutch company KPN as it looks to increase its influence in European markets. The telecommunications firm is also reported to be interested in P4, Poland’s fourth-largest mobile network, which operates services under the Play brand.

If Mr Slim were to make a move into the Polish market he would be the second highprofile foreign businessman to enter the country’s telecoms market this year.

In August, Britain’s Richard Branson, who heads the Virgin

Contact: Miros∏aw Stefanik ms@pnplaw.pl

On August 17, the Polish president signed a protocol amending the Double Taxation Avoidance Agreement between Poland and Cyprus. The protocol is aimed at removing from the agreement provisions relating to so-called tax sparing, namely tax incentives which are disadvantageous from the point of view of Polish national interests. The mechanism of tax sparing is widely used by Polish taxpayers in order to decrease the tax they pay on received dividends.

Moreover, the protocol decreases the level of tax charged on interest at source from 10 percent to 5 percent, introduces pro rata deductions on profits earned by businesses, and changes the taxation rules applicable to the remuneration of Cypriot companies’ directors who, until

David Ingham

Carlos Slim could be about to make a move for Polish telecommunications firms Hawe and P4

IT market

Legal News

Double taxation between Poland and Cyprus

Group, launched his phone service Virgin Mobile in Poland. Virgin Mobile Polska is currently offering prepaid services only, but the company has plans to extend this service in the future as it looks to gain a foothold in Poland.

Mr Slim has an estimated net worth of $69 billion, ranking him at the top of the 2012 Forbes rich list, ahead of Bill Gates and Warren Buffett.

This fortune dwarfs that of Mr Branson, estimated at $4.2 billion.

POLARIS/EAST NEWS

Carlos Slim to enter Polish telecoms market?

now, have paid taxes in Cyprus only. After the protocol comes into force, those directors who are not residents of Cyprus will be taxed in their country of residence.

The changes will become binding from September 8.

Electronic confirmation of right to health care benefits On August 27, the president signed into law an amendment to the Act on Healthcare Benefits Financed with Public Funds. The new legislation introduces a rule under which the basic method of confirming a patient’s right to health care benefits will be carried out electronically, based on the PESEL personal identification number. The new rules will release a patient from the obligation of providing a document confirming his/her health insurance. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Asseco Poland eyes Russia takeover target The Polish IT giant is suspending plans to list in the US in favor of breaking into the Russian market Polish software maker Asseco Poland said it intends to shelve plans to list on the Nasdaq stock exchange until next year, and has instead set its sights on taking over an entity in Russia.

The Polish firm will complete the acquisition of a majority stake in an unnamed Russian company by October, Asseco’s founder and chief executive, Adam Góral, told a press conference in late August. He did not disclose the potential value of the deal, but said it should not require

all of the company’s free cash reserves.

Asseco, Europe’s seventhlargest software vendor by 2010 sales, had hoped to raise between $200 million and $300 million from its Nasdaq debut, but financial-market volatility and the complexities of a foreign listing have forced it to look for other expansion options.

“Works are ongoing, we need at least a year more. It has to be prepared carefully,” Mr Góral said.

Polish firms are almost non-existent in Russia’s €14.3 billion IT market but there is significant room for expansion there, since the market has an annual growth rate of roughly 18 percent.

“We have signed a letter of

intent [with the Russian firm] after months of negotiations,” Mr Góral said.

“We target a majority stake in one of Russia’s biggest players on the finance and banking IT market, operating also around the former Soviet Union,” he added.

Also in late August the Asseco Group (of which Asseco Poland is a part) reported a better-than-expected 11 percent annualized increase in second-half net profit, posting a bottom line of z∏.204 million. Sales revenues over the period reached z∏.2.68 billion, growing 14 percent year-on-year thanks to takeovers in Israel and the US, and a weaker z∏oty.

Gareth Price

FINANCE & ECONOMICS

SEPTEMBER 3-9, 2012

Interest rates

Following a worsethan-expected GDP reading for Q2, all eyes are now on Poland’s monetary policy makers Following the announcement by the Central Statistical Office that the Polish economy grew by 2.4 percent year-on-year in the second quarter of this year, compared to 3.5 percent in the first quarter, economists have started suggesting that an interest-rate cut could be in the cards. “[The] economic outlook for the upcoming quarters is deteriorating, so it seems that the Monetary Policy Council should not wait with monetary easing and may withdraw from May’s controversial rate hike as early as in

September,” Bank Zachodni WBK wrote in a statement after the GDP announcement.

Citi Handlowy analysts meanwhile wrote in a report that the GDP and other recent negative data could lead to a “gradual softening of the [Monetary Policy Council’s] tone and it could even possibly allow the Council to change its official statement by signaling a shift towards neutral (or easing) bias as soon as in September.”

The bank added that the change in the bias wouldn’t imply imminent rate cuts but would make them “more likely,” adding that it expected the first cut to be delivered in January with a risk it could happen “as soon as in November-December.”

It also predicts rates will fall by around 100 basis points over

7

Retail sales rise, but slowdown looms COURTESY OF THE INTERNATIONAL MONETARY FUND

Pressure intensifies for rate cut

www.wbj.pl

Marek Belka the next 12 months.

Marek Belka, the president of the National Bank of Poland, said in late August that a reduction in interest rates was more likely than an intervention in the currency market, which has also been suggested.

“The atmosphere has changed, as has the attitude of the Monetary Policy Council … today we are talking about a possible lowering and not an urgent need to raise interest rates,” said Mr Belka.

On the matter of the z∏oty,

Mr Belka said the Polish currency was “nearing its fundamentals” and that there would be no intervention on its behalf in the near future. But it is unclear for how long the NBP head will maintain this stance since the situation on the ground has changed fast, with the z∏oty depreciating in value rapidly after the GDP numbers were announced.

On August 31, the Polish currency was worth 4.16 against the euro at the close of trade.

Remi Adekoya

Retail sales in Poland increased by 6.9 percent year-on-year in July. In real terms sales advanced 3.4 percent y/y versus an increase of 2.6 percent y/y in June. Analysts expect a slowdown in retail sales and consumption in the coming months due to the deterioration in labor market conditions.

“In July, wage growth fell below zero in real terms and employment has not changed.

In addition, both the Financial Supervision Authority and the

banks have tightened credit requirements, limiting the potential positive impact of lending on consumption. Taking into account a negative savings rate of households and the fact that some members of the [rate-setting council] attach more importance to the savings rate and macroeconomic stability than GDP growth, we expect a further decline in consumption in the next quarter,” Citibank analysts wrote in a Alice Trudelle statement.

Savings shrink Poles’ savings fell by z∏.300 million in the first quarter, as they took money out of the bank to use on everyday spending needs. This is the first time Poles have faced such a situation since 2000, according to a report by the National Bank of Poland.

According to a 2011 study by

pollster TNS OBOP, almost half of surveyed Poles do not have any savings at all.

Poles aren’t able to save for the simple reason that they aren’t earning enough, and prices are high. Although wages are growing, they are not keeping up with inflation, which is GP now at 4 percent.

Legal Forum

Chilling effects of environmental regulation on small businesses Jaros∏aw Szewczyk, Associate Just a quick look at existing environmental regulations is sufficient to show that current ecological requirements place unreasonable burdens on small businesses. Irrespective of the size of an enterprise, whether it is a dentist or a large steel mill, almost the same requirements apply to both.

Notwithstanding, only a tiny group of small-scale entrepreneurs is aware of their ecological duties. If knowledge of these obligations was more widespread, the chilling effects on small businesses would certainly be even more significant.

them. Others deliberately avoid reporting. They just cannot afford to waste their time on calculating amounts of pollution and fees which they could be charged (minus exemptions, in certain cases).

It should be added that the duty of reporting encumbers an entity even if it benefits from an exemption and thus, does not have to pay any fees. It is one of the absurdities of the ecological regulatory system that even if a calculated fee is minimal, the penalty for not reporting it can be large indeed.

Bureaucratic overreach

What to report, and who to address

The desire of Polish authorities to protect the environment has led to the adoption of solutions which are neither reasonable nor worth the cost. Some obligations levied on entrepreneurs seem to be even more burdensome than those concerning settlements with the tax office.

Since the rules are often unclear and the drafting of reports requires the use of complex formulas, entrepreneurs have huge problems with abiding by the environmental rules.

In a great number of cases, entrepreneurs learn about their duties for the first time when fines are imposed on

Entrepreneurs must determine on their own which out of several reports they are bound to submit to the relevant authorities. The most important, and applicable to almost all entities, are those concerning: •waste materials management (listing of waste products and measures undertaken to dispose, recycle or neutralize them), and • environmental user’s fees (statements on ways in which an entity utilizes the natural environment).

There are also reports concerning the introduction of packaging

to Poland (products’ fee), statements on substances affecting the ozone layer, and reports on IT equipment purchased abroad.

By and large, the reports are sent to the Voivodship Marshall’s Office, but sometimes they should also be addressed to the Environmental Inspectorate, the Chief Inspector of Environment or the Central Statistical Office.

Reports on waste materials management Reporting on waste materials management does not result in any obligation to pay. Even so, it is important to prepare the report and file it with the relevant Voivodship Marshall’s Office. Failure to report often results in a fine of z∏.500. Together with the fine, the Voivodship Marshall’s Office issues a decision in which it demands submission of the report. Failure to comply with the decision results in a fine of up to z∏.2,000. The fine can be administered several times, although the aggregate amount of all fines cannot exceed z∏.10,000.

The reports must be submitted by all waste holders who are obliged to conduct waste reporting. This includes nearly all waste holders. The reporting must be

carried out in line with information contained in the waste catalog and the list of hazardous waste.

Excluded from the obligation of reporting are those who: • produce municipal waste (e.g. waste products from households); • remove vehicles from use, but only if a vehicle is transferred to an entrepreneur who runs a business for dismantling vehicles; • are not entrepreneurs and use waste products for their own purposes; and • benefit from some qualitative and quantitative exemptions determined by the Minister of Environment in a special regulation (some types and amounts of waste do not require reporting).

Each company is obliged to account for light bulbs, used toner for printers and all sorts of batteries. Those items are deemed to be hazardous to the environment and therefore no exceptions apply to them. The reports should be filed with the relevant authorities

by March 15 of each year.

Environmental user’s fees The report concerning the environmental user’s fee should be submitted by the end of January. The

Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market.

The content is created in consultation with Warsaw Business Journal's editorial staff.

report should include, among other things, statements on the emission of air pollutants, the amount of water consumed and sewage disposed of. Emissions to the air include fumes from cars and heating furnaces.

Each user of the natural environment is obliged to calculate the fee by themselves. The fee should be calculated on the basis of the report which is submitted to the Voivodship Marshall’s Office. The fees are payable by all users of the environment except for those whose fees do not exceed z∏.400 (for half a year).

A vexing situation Undoubtedly, environmental regulations are imprecise and the level of knowledge about them is low even among officials. Authorities can help only in the most obvious cases. In others, entrepreneurs have to meander among regulations on their own, which is obviously laborious and time consuming.

Ecological burdens are especially taxing for small businesses, which do not have adequate tools or sufficient number of employees to take care of these duties. Unfortunately all they have left right now is to wait for changes to be made to the regulations. ●

8

OPINION & ANALYSIS

www.wbj.pl

SEPTEMBER 3-9, 2012

Europe’s necessary union COURTESY OF THE EUROPEAN COMMISSION

José Manuel Barroso

T

he consequences of Europe’s debt crisis are all too present throughout much of the European Union, as distressed economies attempt to stabilize and grow at the same time. Notwithstanding the important decisions taken over the last couple of years, the reality is that we need to do more to tackle the challenges facing the euro zone.

Reform and consolidation measures are being implemented across the EU. Joint financial backstops have been put in place. And the European Central Bank has consistently shown that it will stand by the euro. Yet experts and partners often underestimate our determination.

All of the steps taken so far have resulted in more European integration, not less. It is true that sometimes decision-making in our democratic system takes time. But do not misjudge us: the negotiations are about the

arrangements, not about the final outcome. There is sufficient political will in the EU to do whatever is necessary to protect the euro, because the future of the single currency will determine that of European integration.

so far – to rescue banks weakens governments’ budgets, while increasingly risk-averse banks stop lending to businesses that need funds, undermining the economy further.

Single rulebook Unfinished business

Europe can stop this negative dynamic now with bold action. A single rulebook for financial services is being put in place for the single market.

Building on this, a single European banking-supervision authority would open the way to direct recapitalization of banks through the European Stability Mechanism, as well as to common deposit insurance and a single resolution framework.

On September 12, the Commission will present its proposals for a Single Banking Supervisory Mechanism based on three key principles: Single supervision: Within the euro zone, coordination between national supervisory bodies is no longer enough. Risks that emerge in one country can affect the entire currency area. Common banking supervision is needed for strengthening confidence among countries using common financial backstops.

Credibility: The euro zone’s new banking-supervision mechanism will have the ECB at its heart. The choice of tasks to be entrusted to the ECB will ensure rigorous, high-quality, and equal prudential supervision of euro zone banks, thereby contributing decisively to maintaining confidence

The additional measures that Europe needs must be firmly rooted in a commitment to deeper integration. High levels of sovereign debt, together with the behavior of parts of the financial sector, have amplified the crisis in the euro zone and raised important issues of confidence that now require a systemic answer.

That is why we must complete the unfinished business of economic and monetary union – and why the European Commission has long argued for the creation of a banking union as an indispensable step toward that goal. The Commission’s upcoming proposals are part of a broader package leading to economic, fiscal, and political union that will redefine the boundaries of European integration.

The crisis has starkly revealed the insufficiencies of existing banking supervision. We must go beyond cooperation and establish an EUwide supervisory authority, particularly in the euro zone. The link between sovereign debt and bank debt has to be broken once and for all. We must end the vicious circle whereby the use of taxpayers’ funds – more than €4.5 trillion ($5.7 trillion)

between the banks – and thus increasing financial stability throughout the euro zone. Close cooperation with national supervisors will be built into the framework.

The ECB’s supervisory role will be fully separated from its monetary-policy responsibilities. In parallel, the European Banking Authority will continue to perform its existing tasks, namely developing the single rulebook for the entire single market and ensuring convergent supervisory practice throughout the EU. Broad coverage: All banks in the euro zone will be covered by the new European supervisory system. And we will need to bridge the gap between euro zone members and EU members that remain outside the monetary union, some of which may want to participate in the new supervisory mechanisms.

The road that we have decided to follow will allow for swift action. The Single Banking Supervisory Mechanism does not require a treaty change and should be in place by January 2013.

Common and more integrated supervision is the first step towards a banking union. Next, the Commission will build on our current proposals for deposit-guarantee schemes and bank resolution mechanisms to move toward a single resolution fund and a single resolution authority. Once these proposals are

implemented, the banking union will be complete.

No magic wand Establishing a banking union by 2013 will not give Europe a magic wand with which to wave away the economic crisis overnight; but it is a major and crucial step to restoring the confidence of Europe’s citizens, international partners, and investors. It will ensure financial stability, increase transparency, make the banking sector accountable, and protect taxpayers’ money.

“All of the steps taken so far have resulted in more European integration, not less” Moreover, it is the start of something much bigger. Once again, I would like to stress that the euro zone is drawing lessons from the past and defining a way forward, not backwards, in terms of integration. That is good news not only for the euro, but also for the global economy.

José Manuel Barroso is President of the European Commission.

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

Has the Polish state failed its citizens?

Remi Adekoya

T

he scandal surrounding the “parabank” Amber Gold, a business which now seems to have been little more than a Ponzi scheme, has once again brought to the forefront the debate over the role of government in the lives of ordinary Poles.

“The same rules need to be applied to all businesses, big and small” The arguments have been made along predictable lines. Some say the Polish state failed its citizens by insufficiently warning them about Amber Gold and not telling them to keep away from its promise of unusually

high returns.

They say the affair proves that the Polish state is weak, or worse, simply does not care enough about its citizens to protect them from financial predators.

Others say all that is hogwash spouted by lefties yearning for a Polish nanny state. They say that Amber Gold’s clients are to blame – they were either too greedy or too stupid not to realize that an offer of 14 percent interest on savings is, by definition, suspicious.

They believe Amber Gold’s clients, of whom some 7,000 have lost well over z∏.100 million, should now face the consequences of their folly.

Risk, reward and failure People should have the freedom to do dumb things with their own money, but others shouldn’t have to pay for their mistakes. Three key ele-

ments in capitalism are risk, reward and failure. Unfortunately, these elements have too often been skewed recently, as governments bail outs banks that are “too big to fail.”

National Bank of Poland president Marek Belka made a good point when he said Polish prosecutors “are afraid to act in such cases [as Amber Gold] because they are wary of being accused of limiting the economic freedom of entrepreneurs who are the engine of progress. And they are – but there are also cheats among them.”

Unfortunately, all too often, small and medium-sized businesses are harangued by bureaucrats for the smallest possible discrepancy in their documents, while those same officials quiver before big businesses even when they openly break the rules.

That needs to change: the same rules need to be applied to all busi-

nesses, big and small.

The prosecutors who were asked by the Polish Financial Supervision Authority to investigate the scheme Amber Gold was running, and didn’t do so, clearly failed at their jobs.

Government officials need to learn, just like ordinary people, that all that glitters is not gold.

The idea that the government can eradicate all such scams is fantasy, but the notion that all people are capable of making the best choices for themselves is fantasy as well.

When it comes to financial decisions, most people simply don’t understand the market to a sufficient degree, and can be easily bamboozled by a smooth-talker in a smart suit.

To those who say the government should never interfere in such matters: Would they maintain that opinion if, say, 50 percent of depositors in

traditional banks suddenly withdrew their savings and put them in shoddy institutions offering sky-high returns, thereby risking a collapse of the whole financial system?

As a result of the Amber Gold affair, Poles will surely become more skeptical of institutions offering high returns now, at least for a while. But after some time, they likely will forget, and another slick operator will tell them he can make big money for them in no time.

And the state will have no business telling Poles whether they should or should not take that risk.

But it does have a role to play: namely, to make sure all businesses play by the rules. G Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl

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

PUBLISHER VALKEA MEDIA SA CO-MANAGING EDITOR

GARETH PRICE (GPRICE@WBJ.PL)

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ADAM NARCZEWSKI ANDREW NAWROCKI

ALICE TRUDELLE (ATRUDELLE@WBJ.PL)

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IZABELA DEPCZYK POLITICS EDITOR

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(ABREJWO@WBJ.PL) PRODUCTION MANAGER

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MARKETING &SALES

MARKETING &SALES DIRECTOR

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EU funds: businesses should start preparing right away for the next wave of money coming from Brussels 13

INVESTMENT FINANCING W a r s a w B u s i n e s s J o u r n a l ’s s p e c i a l s e c t i o n o n s o u rc e s o f c a p i t a l a v a i l a b l e t o b u s i n e s s i n P o l a n d

EBRD in Poland

The EBRD in Poland

Strategic investments

Lucyna Staƒczak, director for Poland at the European Bank for Reconstruction and Development (EBRD), tells WBJ about her bank’s strategy for the country Alice Trudelle: Before the global financial crisis hit in 2008, the EBRD was in the process of decreasing its funding to Poland. With the crisis threatening to set back the Polish economy’s transition process, in the following years EBRD investment in Poland went up sharply, growing to unprecedented levels of €900 million in 2011. What is the EBRD’s current strategy for Poland?

Lucyna Staƒczak: Our wider strategy across the region is to

shift gradually away from more advanced countries, such as Poland, to less advanced ones, such as Ukraine and countries in Southeastern Europe.

Poland has always been considered a well-developed country in our region, but the financial crises across the region changed this picture. As a result the EBRD has substantially increased its business in Poland and for this year we still plan to invest between €500 million and €600 million.

Do you see another wave of the European financial crisis, and therefore a renewed need for EBRD financing in Poland, as probable?

The influence of the euro zone financial crisis continues to have an impact on our region.

In Central Europe it may result in the further slowdown of growth. This year there will be a visible slowdown, also in Poland, with the EBRD forecasting GDP growth for 2012 at 2.9 percent. This is largely linked with external factors, a sign of the continued recession in the EU. This year we have a slowdown in investment and in

internal demand, and one might say Poland’s trade links with the euro zone are not so strong, but the relationship is there and the Polish economy is not immune to the ongoing recession. The euro zone crisis may also further impact the Polish banking sector. One of the key risks is lower appetite for credit, in particular credit to industry, and this has a direct impact on growth.

The EBRD is seeking to help Poland reduce its dependence on foreign private financing.

What risks does too much reliance on foreign financing

SEPTEMBER 3-9, 2012

Cumulative number of projects

299 Total project value

€28.7 billion Net cumulative business volume

€5.5 billion Private portfolio sector

89% Portfolio

€2.4 billion entail, and what are possible solutions?

This is a conclusion that dates back to 2010, when the global crisis exposed weaknesses in the economy, such as banks and consumer exposure to mortgages denominated in Swiss francs, uncertainty regarding the strategies of foreign banks in Poland and stronger volatility of non-FDI

capital flow in the region.

These factors created strong vulnerabilities and risk for borrowers, consumers and the real economy, and they are still valid concerns.

We believe that in countries such as Poland, the local currency capital market should constitute a safe alternative where you are not so exposed Continued on p. 12 ➡

Private equity

Back in action?

Fundraising for the region has been strong so far this year, and attractive opportunities for PE deals continue to present themselves Despite clear signs the Polish economy is losing steam, evidence is building that the CEE private equity industry is about to swing back into action after a post-2008 lull.

Recent figures from the Emerging Markets Private Equity Association (EMPEA) show strong growth in the amount of private equity capital raised by Emerging European funds in the first half of this year. Some $2.59 billion was generated over the period, significantly more than the $1.75 billion raised during the whole of last year, and the most raised since 2008.

“After about five years, fund managers are back to market: 2008 was the tail-end of the last cycle, this is now the start of a new cycle,” said Jacek Korpala, co-managing partner at Arx Equity, a midmarket private equity firm focused on CEE.

Slow climb Emerging Europe private equity fundraising totals, 2007-H1 2012 (billion $) 15

12

9

6

3

$bln

2007

2008

2009

2010

2011

H1 2012

Source: Emerging Markets Private Equity Association

“If the fundraising figures are accurate, it is very positive for the region,” he added.

Although much of the capital raised is earmarked for Turkey, EMPEA says Poland is a co-leader in the Emerging Europe region. It is also the undoubted leader in CEE, where investment activity is expected to pick up following the latest round of fundraising.

Consultancy KPMG found in a recent poll that 18 percent of surveyed CEE private equity funds expect “to focus most of their time on raising new funds – one of the highest pro-

portions in the history of the survey.” This “suggests that many professionals are planning to build a war-chest for heightened investment activity in years to come.”

This is especially welcome news since completed investments were only at $973 milContinued on p. 12 ➡

In this supplement EBRD Interview . . . . . . . . . . . . . . .10-12 Private Equity . . . . . . . . . . . . . . . .10-12 EU Funds . . . . . . . . . . . . . . . . . . . . . . .13

12

www.wbj.pl

INVESTMENT FINANCING

SEPTEMBER 3-9, 2012

Strategic investments

Back in action?

➡ Continued from p. 10

see a strong commitment from the government to continue privatizing key sectors, such as energy, chemicals and others and we are open to provide our support for those.

➡ Continued from p. 10

Energy efficiency and renewables are another important sector of EBRD involvement in Poland. How do you view the government’s latest draft bill on renewable energy, which sees significant cuts in funding for renewables starting from next year?

The draft law remains to be analyzed, but we are happy the legislation has been defined and investors have new material for revisiting their investment decisions. Over the last year we have seen a substantial slowdown, if not a halt, in investments in the renewable energy sector, because investors were cautious, not knowing the future regulatory framework. Anything that leads to stability in this area is welcome.

It is too early for us to make a judgment, but we expect to have a stable scheme that will unblock investments, and an approach that is more economic-oriented to promote a wider variety of renewable energy sources. ●

Buyers’ market?

to external shocks and exchange risk.

In 2012, the EBRD helped consolidate the Polish banking sector when we invested z∏.332 million in Bank Zachodni WBK to back its merger with Kredyt Bank. However the key EBRD objective in Poland is to support the development of the local currency capital market. The bank would like to support the Polish banking sector in fundraising on local capital markets, such markets being important alternatives for addressing banks’ medium-term liquidity needs (either in the form of unsecured bonds, cover bonds or securitization).

Another of the EBRD’s proposed solutions is to engage local institutional investors such as pension funds, mutual funds and insurance companies in the private equity industry.

In particular, private equity in our region could act as an important source of capital for small and medium-sized enterprises (SMEs) and these are SMEs that provide a large contribution to the real economy in countries like Poland. During the financial crisis they saw credit availability slow down, and although we saw some

recovery, funding is not back to pre-crisis levels yet.

The EBRD has been active in Poland’s privatization process, notably participating in the landmark privatization of telecoms operator Polkomtel.

What are the next privatizations and restructuring processes in which the bank plans to be involved?

Private sector involvement remains the EBRD’s priority, and therefore privatizations continue to be at the top of our agenda in Poland. Our equity investment of €200 million to facilitate the privatization of Polkomtel in the fall of 2011 was the EBRD’s largest equity investment in Poland at the time.

We also invested in the first stage of the privatization of Enea in 2008, and at the time the government declared that the company would be fully privatized. Of course the market will have an impact on the right time and the strategy for further privatization, but we believe this will happen soon.

Any privatization decision, particularly today, is dependent on several factors: the macro environment, rights valuation, investors’ appetite and many others. They are also not immune from politics, but we

lion in Emerging Europe H1 this year, compared $3.48 billion for the whole last year, according EMPEA data.

in to of to

Przemek Szczepaƒski, a partner at Syntaxis Capital, a provider of mezzanine finance in CEE, said his company is becoming increasingly active.

“Our second fund is now being put to work in a muchimproved investment environment,” he said. “We have closed three deals and there are more coming.”

With attractive deals having been hard to come by in the years following the start of the crisis, market players

say opportunities are being created by entrepreneurs who established businesses 15 or 20 years ago and now want to cash out of their investments.

“There are now some strong local leaders,” said Mr Szczepaƒski, adding that firms in the health care, manufacturing and business services sectors are particularly attractive at present.

Mr Korpala said that his company is preparing to make investments in the Czech Republic and Poland. He added that prices are now much more “realistic” than they were just before the crisis.

Many other firms are heavily indebted or operating in slowing sectors, also offering

opportunities for good deals.

“If you want to purchase and improve a business there are a number of interesting opportunities out there,” Mr Korpala said.

However, market players that spoke to WBJ offered words of caution, saying that confidence had not returned to pre-crisis levels.

“It is easier to invest when the economy is booming … in a slowing economy one needs to become more careful,” Mr Korpala said.

Mr Szczepaƒski said that “although there has been an uptick compared to the last two years, confidence levels are not as strong as they were in the peak years.”

Gareth Price

CEE part of the ‘basket case’?

Many investors now group CEE, and especially Poland, together with Emerged Europe, since the performance of many of its constituent economies is strongly linked to the fate of the rest of Europe.

“For US investors, being part of Europe, CEE is also a part of the basket case,” said Przemek Szczepaƒski, a partner at Syntaxis Capital.

“They are looking elsewhere, in regions where there is still strong GDP growth.”

Nevertheless, being put in a basket with Western European countries is not necessari-

ly bad news for Poland, the CEE’s preeminent destination for PE investment.

“Poland being increasingly viewed as part of Western Europe can be seen as a good thing,” said Kanika Kumar, a principal at Acanthus, an advisory firm focused on private equity fund placement.

“LPs tend to levy a risk premium on emerging markets, so benchmarking Poland against Western European countries is probably fairer in light of the risk/reward potential there,” she added. ●

INVESTMENT FINANCING

SEPTEMBER 3-9, 2012

www.wbj.pl

13

EU funding

Start preparing now WBJ looks at the changing impact of EU funds and how businesses can best acquire them in the 2014-2020 financial period Poland has benefited greatly from European Union funding since its accession to the bloc in 2004. The current EU

order to bring itself up to speed with many of its European counterparts.

Other sectors which have been successful in gaining financing in recent years are those concerning innovative technologies and the “e-economy,” according to Miros∏aw Marek, vice president at DGA, an EU funds consultancy.

“Highly innovative projects have the best chance to receive financing, regardless of the sector,” he said.

financial framework for the period 2007-2013 will see a total of €67.3 billion made available for businesses and entrepreneurs in Poland, the majority of which has already been allocated.

During this seven-year period significant amounts of money have been spent on infrastructure projects as Poland continues to modernize its roads and railways in

SHUTTERSTOCK

Changing climate

Small solar energy projects are expected to benefit from the next wave of EU funds

But with the 2014-2020 budget currently under consideration, it is still uncertain how Poland’s funding could be affected in the future. Draft regulations for the new cohesion policy after 2013 – approved by the European Commission in 2011 – presume the allocation of some €336 billion to cohesion policy in the next EU budget. For Poland, this could translate into an inflow of EU subsidies worth €80 billion in 2014-2020.

In terms of advice for businesses looking to gain funding in the 2014-2020 period, the experts that WBJ spoke with predict that significantly less money will be available for infrastructure and construction projects. However, sectors such as renewable energy and R&D are expected to see an increased allocation of funds.

It has been suggested that EU funds allocated to wind farm projects could increase as Poland looks to reduce its reliance on coal as its main source of energy, and meet EU targets of producing 20 percent of its energy from renewable sources by 2020.

However, Tomasz Hoffmann, country manager for PNO Consultants Poland and managing partner for PNO CEE, which advises companies on acquiring EU funds, said that while wind technology may receive a boost, other renewable energies are likely to see the most benefits.

“We expect the budget for renewable energy to be enlarged. But this increase

will most probably go in the direction of small-sized biogas and photovoltaic [solar] energy projects,” he said.

And for businesses looking to cash in on the next EU windfall, the advice from Poland’s consultancy companies is to start preparing now.

“Although EU financing is programmed on multi-annual basis, in practice there are only short windows of time for the

companies to submit their applications.

Companies should not wait with preparation of their development projects until the window is opened, since usually it will be too late to prepare a good project,” Mr Marek said.

“I think right now is a good time to start preparation of projects for the 2014-2020 period.”

David Ingham

EU funds 2007-2013 As part of the EU’s financial framework for the period 2007-2013, €67.3 billion was made available for businesses in Poland.

“EU funds allow Poles to find a job, start their own business, participate in training and develop professionally,”said Poland’s Minister of Regional Development El˝bieta Bieƒkowska in August.

And in comparison to the other Visegrad Group countries, the Czech Republic (€26.7 billion,) Hungary

(€25.3 billion) and Slovakia (€11.6 billion), Poland will have received significantly more funding over this sevenyear period by the end of 2013.

So far, a total of 75.3 percent of the 2007-2013 funds have been allocated, with the value of the more than 73,000 agreements amounting to z∏.312.6 billion of eligible expenditure, according to figures from the Ministry of Regional Development. ●

Advertorial Feature

Silesia’s genes for success The Silesia Voivodship (Âlàskie) is Poland’s most attractive investment location. The Katowice Special Economic Zone, with 50,000 jobs and €4.4 billion in investments, a working-age population of over 3 million, nearly 200,000 students at 45 universities and colleges, excellent connections to other parts of Poland and Europe, and a strong work ethic prove that we have the genes for success.

For the seventh time in a row Silesia has been ranked as the most attractive investment location in Poland (that's according to the report “Investment Attractiveness of Polish Provinces and Subregions,” by the Gdaƒsk Institute for

Market Economics, 2011). The Katowice Special Economic Zone has created tens of thousands of new jobs in 35 cities in the voivodship. Opel, Fiat, Isuzu, Agora, Famur and Mokate, among other investors, have come to value Silesia's human resources, attractive labor costs, as well as its best-in-the-country transport connections and social infrastructure. The region, inhabited by 4.6 million people, has the highest population density in Poland and is the most urbanized area in Central Europe.

A traditional work ethic is the hallmark of the people who have worked here in industry for generations. Silesia has a working-age population of over 3 million.

The voivodship's active business networks and dynamic market are the product of true teamwork. The 45 universities and colleges of Silesia tutor almost 200,000 students, with 60 percent of

them studying for degrees in engineering and economics.

Silesia is one of Poland’s leading centers for R&D. The first artificial heart, as well as numerous design initiatives are the showpieces of our creative potential.

An innovative approach to business contributes to the success of the firms that operate in the region. There are 18 industry and technology parks operating in the energy, automation, electronics and construction sectors. Over 2 million creative people living in 14 cities of the so-called Silesia Metropolis create the region’s positive energy.

Silesia’s densest network of expressways and motorways in Poland completes the offer. The cities of the conurbation are interconnected by a multi-lane transit road. Katowice Airport is the largest regional airport for cargo traffic in Poland.

The railway terminal in S∏awków is the

westernmost point of the broad-gauge railway line, which connects Silesia to the Asian and Far Eastern transport system.

The Silesia Voivodship has always been a strong pillar of Poland's economy. Make use of the potential of the region! Thirty attractive sites for investment are waiting for you: invest-in-silesia.pl ●

Despite being more cautious, banks are still financing real estate projects in Poland

Two of Poland’s largest residential developers have published good H1 results

16-17

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

Galeria Miejska, the retail section of the underconstruction Plac Unii mixed-use complex in Warsaw, has obtained a BREEAM certificate of energy efficiency and environmental performance. In May this year, BREEAM certification was also given to the office section of the investment. The Plac Unii project is being developed by Liebrecht & Wood and BBI Development NFI and is scheduled to be completed in the autumn of 2013. It will offer 41,300 sqm of office space and 15,500 sqm of retail areas.

CBRE leases Carpathia offices Developer GD&K Group has appointed CBRE as a leasing agent for its planned Carpathia office building in Warsaw. The project will be located in the capital’s PowiÊle neighborhood and will provide approximately 4,700 sqm of office space.

GD&K has already obtained a building permit for the scheme, construction on which is expected to launch in the last quarter of this year and finish at the beginning of 2014. The company is now in the process of selecting a general contractor for the investment. ●

In this issue HB Reavis offices . . . . . . . . . . . .15 New Marvipol homes . . . . . . . .15 Peakside acquisition . . . . . . . . .15 Property financing . . . . . . . .16-17 Property-related stocks . . . . . .16 Residential results . . . . . . . . . . .17 Lipiński Passage building . . . .19

Office

HB Reavis Poland plans new office project in Warsaw The 33,000-sqm scheme will be located in the capital’s Mokotów district Developer HB Reavis Poland is planning to build a new office project in Warsaw that will be developed on approximately one hectare of land which the company acquired from OTIS earlier this year, said the company’s CEO Stanislav Frnka.

The acquired plot is located at the intersection of ul.

Marynarska and ul. Post´pu in the capital’s Mokotów district and currently houses a building occupied by OTIS and Carrier, both of which belong to the UTC Group.

The entities have already leased space in the under-construction Konstruktorska Business Center development that HB Reavis is now building in the same area. Once that investment is completed, the building on ul. Post´pu will be demolished and construction

COURTESY OF HB REAVIS

Galeria Miejska BREEAMcertified

SEPTEMBER 3-9, 2012, LI 17/35

Construction on the scheme is expected to launch in Q2 2013 on the new scheme will commence.

The planned office building has been designed by the

Hermanowicz Rewski Architekci studio and will deliver approximately 33,000 sqm of leasable office space.

Work on the project, which will be BREEAM-certified, is expected to launch in Q2 2013, Mr Frnka said.

Meanwhile, HB Reavis is continuing preparation work on an office complex located near the Warsaw West railway station, details of which will be revealed in upcoming weeks.

“We hope to obtain all the administrative permits for this investment by the end of 2013,” Mr Frnka said.

By the end of this year, HB Reavis should also be able to present the architectural concept for an investment that will be developed on ul. Chmielna in downtown Warsaw, on land which the company won in a public tender from Polish State Railways in November last year.

Mr Frnka expects construction on that development, which will include high-rise buildings, to launch in 2014.

The company is now also looking for other office sites in Warsaw and is interested in the development of retail space, both in the Polish capital and in regional cities, Mr Frnka said.

Adam Zdrodowski

Peakside acquires AIB’s Marvipol plans to launch Polish property-fund new large-scale project in Warsaw’s Bia∏o∏´ka district management business Warsaw Stock Exchange-listed developer Marvipol plans to launch construction and sales of apartments in the first phase of a new large-scale residential project in Warsaw later this, or early next year, said S∏awomir Horbaczewski, vice president of the company’s management board.

In July, Marvipol announced the signing of a preliminary purchase agreement valued at z∏.37 million net and concerning approximately eight hectares of land

located on ul. Marywilska in the Polish capital’s Bia∏o∏´ka district.

Marvipol acquired the land along with a planning decision that allows for the development of more than 70,000 sqm of usable residential space and a building permit for the first phase of the planned scheme.

Apartments in the project will be priced below z∏.6,000 per sqm, Mr Horbaczewski said.

Meanwhile, preparation work is underway on another large-scale residential scheme

in the Polish capital that Marvipol plans to develop on 11 hectares of land located in the area of ul. K∏obucka in the Ursynów district.

The investment, for which the company has already secured a planning decision, will deliver some 140,000 sqm of usable residential space.

Construction on the first phase of the development is expected to launch in the first quarter of 2013, Mr Horbaczewski said.

Adam Zdrodowski

Real estate private equity firm Peakside Capital has completed the acquisition of Allied Irish Banks’ (AIB) Polish property fund management subsidiary, AIB PPM. Moreover, in a 50:50 joint venture with Partners Group, it has snapped up AIB’s 9.87- and 7.5-percent stakes in two Polonia Property Funds.

Following the acquisition of PPM, Peakside added over €600 million in gross assets under management (AUM) to its business, with the company’s total AUM now amount-

ing to over €2 billion. PPM will be renamed Peakside Polonia Management and its team is now being integrated into Peakside.

“We have long identified Poland as a market of strategic importance for Peakside … and the completion of the acquisition of PPM is a significant step towards fulfilling our ambitious and long-term plans for growth in this vibrant core CEE market,” Stefan Aumann, partner at Peakside, said in a statement.

Adam Zdrodowski

www.wbj.pl

Opera Office occupancy permit The Opera Office project in Gdaƒsk has obtained an occupancy permit. The class-A development has delivered approximately 7,600 sqm of office space, over 95% of which has already been commercialized. Tenants are expected to move into the property in September. Euro Styl is currently involved in four commercial projects, including Euro Office Park in Gdaƒsk, Centaurus in Olsztyn and an office building on ul.

Woronicza in Warsaw.

New Hilton Garden Inn opened The Hilton Garden Inn hotel brand has opened its second facility in Poland. The hotel is located in Rzeszów, in Podkarpackie voivodship, and offers 101 rooms, as well as over 650 sqm of conference space. The brand was introduced into the Polish market last year with the opening of Holiday Garden Inn in Kraków. ●

LOKALE IMMOBILIA – REAL ESTATE

SEPTEMBER 3-9, 2012

Real estate financing

More cautious, still active Banks in Poland have continued to provide financing for highquality developer projects Bank real estate financing has been harder to come by in Poland in recent years, but market analysts and developers alike claim that lending institutions have continued to be active in providing credit for prime assets.

“While banks remain cautious and highly selective, they have been actively lending [this year] and we anticipate that they will continue to lend in the coming months,” said Rory Mepham, head of corporate finance, Central and Eastern Europe, at Jones Lang LaSalle.

“In particular, a number of Polish banks have relatively high liquidity ratios, when compared to some of their international counterparts, meaning that they have a greater capacity for taking on new business,” Mr Mepham added.

Erez Boniel, member of the management board and financial director of developer Globe Trade Centre (GTC), stressed

COURTESY OF BBI DEVELOPMENT

16

Development financing has been largely limited to the best-quality assets such as the under-construction Plac Unii complex in Warsaw, for which investors obtained a €105-million loan earlier this year that the situation in Poland is positive in comparison with other European countries, but added that even in Poland financial security is playing an increasingly important role.

Conservative lending Jones Lang LaSalle’s Mepham

said that when it comes to highquality, income-producing assets, both domestic and international banks have been active, in Warsaw and regional cities. Levels of leverage remain conservative, with banks reluctant to lend more than 65 percent of a project’s value.

“In terms of development financing, perceived with a greater degree of risk by the banks, the majority of lending has been carried out by the Polish domestic banks. Development financing has been more limited and banks have generally chosen to fund only

the best-quality assets,” he said.

Boles∏aw Ko∏odziejczyk, from the valuation and advisory department of Cushman & Wakefield, pointed out that developers can mostly count on obtaining financing from commercial banks, the most

Property-related stocks Security

Closing price on Aug 30

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

47.51

-6.57

45.85

88.35

-33.41

25,530,098

1,212.93

CELTIC

10.25

-5.62

7.02

22.70

-38.99

34,231,466

350.87

DOMDEV

25.69

6.95

23.50

42.80

-14.37

24,670,397

633.78

ECHO

3.70

5.71

3.05

4.40

1.65

420,000,000

1,554.00

ELBUDOWA

94.50

1.72

87.00

126.70

-22.29

4,747,608

448.65

ENERGOPLD

0.24

-7.69

0.21

3.05

-92.68

70,972,001

17.03

ERBUD

11.75

-8.49

11.75

23.30

-27.24

12,644,169

148.57

GANT

4.96

-0.80

4.79

9.85

-50.70

20,120,000

99.80

GTC

6.34

2.26

5.20

12.49

-44.34

319,372,990

2,024.82

HBPOLSKA

0.06

0.00

0.05

1.43

-94.92

210,558,445

12.63

JWCONSTR

3.96

0.25

3.86

8.70

-53.79

54,073,280

214.13

LCCORP

0.93

-12.26

0.85

1.48

2.20

447,558,311

416.23

MARVIPOL

10.52

-0.66

6.20

11.00

19.00

36,923,400

388.43

MIRBUD

1.08

3.85

0.98

2.69

-58.30

75,000,000

81.00

MOSTALWAR

13.00

-2.11

11.30

25.88

-44.44

20,000,000

260.00

MOSTALZAB

0.88

7.32

0.81

1.80

-46.67

149,130,538

131.23

ORCOGROUP

9.18

9.94

8.00

23.98

-65.49

35,415,406

325.11

PBG

5.71

-8.64

5.30

93.00

-94.07

14,295,000

81.62

PLAZACNTR

2.03

0.00

1.80

2.94

-27.76

297,174,515

603.26

POLAQUA

3.89

-1.02

3.60

13.10

-73.68

27,500,100

106.98

POLIMEXMS

0.48

-22.58

0.48

2.04

-75.13

521,154,076

250.15

POLNORD

12.50

-1.96

10.49

19.85

-17.55

23,798,439

297.48

RANKPROGR

7.24

-10.84

7.10

16.97

-30.98

37,145,050

268.93

ROBYG

1.24

-4.62

1.04

1.75

-0.80

257,935,500

319.84

RONSON

0.64

-7.25

0.69

1.15

-43.36

272,360,000

174.31

TRAKCJA

0.65

-2.99

0.65

1.87

-64.09

232,105,480

150.87

ULMA

38.15

2.55

37.20

74.80

-40.85

5,255,632

200.50

UNIBEP

4.40

7.32

3.60

6.61

-6.38

34,021,684

149.70

WARIMPEX

2.97

12.50

2.64

6.00

-50.91

54,000,000

160.38

ZUE

5.79

-2.85

5.07

10.00

-31.88

22,000,000

127.38

SEPTEMBER 3-9, 2012

active of which now include PKO BP, Pekao and Nordea.

In the case of commercial projects, banks mostly lend for schemes whose business plans indicate the possibility of achieving a developer yield (the ratio of the revenues from the sale of a project to that project’s development cost) of more than nine percent.

Higher requirements Property market experts and developers say that in recent years banks have instituted higher requirements for financing the construction of new buildings. They have been more selective and have demanded higher equity and pre-lease levels of real estate developers.

“Banks have been prepared to lend up to 70 percent of the projected development budget for projects but, as with income-producing assets, have a preference for lower levels of leverage,” Jones Lang LaSalle’s Mepham said.

He added that the level of pre-leasing that a bank is prepared to accept as a condition for providing development finance varies between the sectors and also depends on the location and market positioning of the asset. It ranges between 30 percent and 70 percent.

“Assets located in the core locations with either a track record or potential to be a

LOKALE IMMOBILIA – REAL ESTATE dominant asset in its respective location, continue to be substantially easier to finance than assets in fringe or noncore locations,” Mr Mepham said.

Unpromised land Cushman & Wakefield’s Ko∏odziejczyk said that it is difficult to say in which sectors financing is easier or more difficult to obtain. It all depends on the particular project’s ability to generate profit and this, in turn, depends on factors including location, project size and the developer’s experience.

However, he added that bank financing for developers’ purchases of investment land has become almost nonexistent.

GTC’s Boniel agreed, saying that if such financing takes place at all, it is subject to numerous restrictions and involves high margins.

Wojciech Zbigniew Okoƒski, president of the management board of Robyg, one of the largest residential developers in the Polish market, said that under the current circumstances, financing the purchase of land is very difficult, and only selected developers are still able to do so.

However, he added that in June this year his company had managed to get a bank loan that refinances the acquisition of a plot in War-

saw’s Bemowo district at a level of 60 percent.

Financing alternatives With bank financing harder to obtain than in the boom years, some developers have been trying to turn to alternatives.

Cushman & Wakefield’s Ko∏odziejczyk pointed to corporate bonds as a popular, but relatively expensive option, good for companies with a stable financial situation.

He also mentioned mezzanine funds as another alternative, while GTC’s Boniel said that the establishment of a special-purpose vehicle with another entity, for example with one that has land to build on, has become more popular of late.

Robyg is an example of a developer that has used corporate bonds to finance its projects in the past. In the first half of this year, the company completed the issue of bonds in the amount of z∏.30 million that will help finance land purchases and other activities of the firm, Mr Okoƒski said.

He added that Robyg would consider another bond issue if an attractive offer to buy land appeared. GTC mostly relies on bank loans and equity, but has also recently raised €100 million due to the issue of new shares, Mr Boniel said.

Adam Zdrodowski

www.wbj.pl

17

Company results

Residential developers report positive results Dom Development and Robyg, two of the largest residential developers in Poland, both did well in H1 Warsaw Stock Exchange-listed residential developer Dom Development recorded z∏.308 million in revenue and z∏.30.2 million in net profit in the first half of 2012, increases of 85.4 percent and 360 percent respectively, over the same period of last year.

In H1 2012, the developer sold a total of 741 apartments, compared to 826 homes offloaded in H1 last year.

Despite the drop, board president Jaros∏aw Szanajca stressed that sales have been stable in recent months and that the company has won a record 15.3 percent share of the Warsaw market.

“Despite a difficult market situation, we have seen stable monthly sales of about 100 apartments and I hope that [the level] can be maintained until the end of the year,” Mr Szanajca said. He added that Dom Development could launch sales of up to four new projects

by the end of 2012.

As of the end of H1 2012, Dom Development had 2,262 apartments on its offer, while construction was underway on 2,939 of its homes. New projects could add a total of between 500 and 650 units by the end of the year, Mr Szanajca said.

Meanwhile, another Warsaw Stock Exchange-listed developer, Robyg, reported z∏.207.6 million in revenue and z∏.20.8 million in profit for the first half of 2012, up 232 percent and 526 percent, respectively, on the same period of last year.

In the first two quarters of this year, Robyg sold 552 apartments, compared to 530 and

287 housing units offloaded in the same periods of 2011 and 2010. In H2 2012, the developer plans to launch construction on approximately 900 homes.

“Robyg’s plans provide for the sale of approximately 1,000 apartments per year and we believe that this [level] can be achieved,” Oscar Kazanelson, president of Robyg’s supervisory board, said in a statement.

“The position of a vice leader in the segment in terms of the number of apartments sold and very good financial results allow us to think positively about the results for the whole year,” Mr Kazanelson said.

Adam Zdrodowski

Building ‘stability’ Dom Development apartment sales, Q1 2011-Q2 2012 500 375 250 125 0 Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Source: Dom Development

SEPTEMBER 3-9, 2012

LOKALE IMMOBILIA – REAL ESTATE

Historical property

COURTESY OF S+B GRUPPE

Lipiƒski Passage hopes to attract tenants with mix of history and modernity

The Lipiƒski Passage is one of few historical buildings in central Warsaw that offer modern office space

Lokale Immobilia talks to Volker Noack, member of the management board of Union Investment Real Estate, about the company’s Lipiƒski Passage building in Warsaw, which is now in the process of being commercialized Adam Zdrodowski: When did Union Investment acquire the building and what was the transaction price?

Volker Noack: Union Investment acquired the historical building in 2010 for its institutional fund DIFA-Fonds Nr. 3.

As the property forms part of an institutional fund the purchase price is confidential.

The building recently underwent renovation. When did the process finish?

After having received an occupancy permit, the Lipiƒski Passage on Aleje Jerozolimskie was opened in October 2011. In March 2012 we took over the building into the portfolio of one of our special property funds.

How much did the Lipiƒski Passage change during the renovation process?

Under the aegis of Union Investment, the building underwent complete refurbishment and is now operating as a high-class office and retail scheme with some 6,000 sqm of leasable area. The property originally comprised two residential buildings with a joint courtyard.

During the process of reconstruction the residential space was converted into perfectly visible retail space, premium office space and restaurant facilities with an internal patio. The facade was only slightly changed.

The facade on the street side, including balconies and decoration elements, was restored to the original prewar state. The facade in the courtyard was largely preserved and restored. The balconies and staircases had to be adapted to the new glass roof.

It was very important for us to restore the fin-de-siècle charm of the building and, at the same time, to deliver a high-quality modern office project.

COURTESY OF S+B GRUPPE

How much leasable space does the Lipiƒski Passage offer?

At the Lipiƒski Passage some Mr Noack sees ample tenant interest in 1,950 sqm of office space and the building

889 sqm of retail space are available. The leasable office space ranges in size from 60 sqm to 560 sqm, while the retail units are sized from 60 sqm to 570 sqm.

The Lipiƒski Passage offers the unique possibility in the Warsaw market to lease 60 sqm of office space in an office building of the highest standard – most office buildings offer spaces sized from 250 to 300 sqm.

At what stage is the process of commercializing the building?

The Lipiƒski Passage is more than 50 percent leased out, which is quite a good occupancy rate. Especially companies from the financial sector, lawyers, tax advisors and consultancies are interested in office space in the building.

We are also targeting European oil and gas companies.

These kinds of premium clients particularly appreciate the discretion and comfort of work in smaller and prestigious office buildings such as the Lipiƒski Passage.

Is there a lot of demand for this kind of office product in Warsaw, a city where there is not much office space in renovated historical buildings?

There are not so many addresses in Warsaw that combine high-class office space with the character of a historical building, and most of the existing buildings of this kind are located in the city’s Old Town area.

Lipiƒski Passage provides tenants with office space in a building with a truly historical character that is located in the central business district, right next to the Warsaw Central railway station, the Z∏ote Tarasy shopping mall and the Marriott Hotel. ●

www.wbj.pl

19

20

INTERVIEW

www.wbj.pl

SEPTEMBER 3-9, 2012

Defense

An active ally Tomasz Siemoniak, Minister of National Defense, talks with WBJ about the condition of the Polish Armed Forces, the meaning of NATO’s Smart Defense initiative, the realization of the missile defense system in Europe and Poland’s security September this year. It is however not possible to undertake all these problems at the same time, thus we sometimes face difficult choices.

Do you think that in the world today a state’s security depends mostly on its participation in a strong military alliance or rather on having its own large army with advanced equipment?

Currently, countries like Poland cannot protect their security as sole players. The “defense autarky” is not an option for us. This is not affordable – and not necessary.

Thanks to our membership in NATO, Poland and other members do not have to build their own autonomous defenses. We use NATO as a system that connects allies’ forces and makes them much more effective and cheaper. That is why so much emphasis is nowadays put on improving multinational cooperation in the Alliance.

From this perspective, NATO membership is a matter of a rational choice. It gives us reasons to believe that our allies would be ready to effectively assist us, if such an assistance is required.

At the same time we need to do our homework and ensure a substantial contribution to NATO. We have to find a balance between relying on others and counting on ourselves. The principle of a “fair burden-sharing” obliges every ally to contribute to the common goals of the Alliance. If we want to be an important member of the Euro-Atlantic community we have to possess modern and effective armed forces. To this aim, Poland is investing z∏.29 billion annually in its defense – we acquire new equipment and capabilities, transform structures and train forces. Furthermore, we show solidarity with other allies’

COURTESY OF THE MINISTRY OF NATIONAL DEFENSE

Ewa Boniecka: How would you describe the condition of the Polish army?

Tomasz Siemoniak: The Polish Armed Forces are in the process of comprehensive transformation and modernization. Our aim is to make them modern and ready to respond to the challenges of today and tomorrow. For the last two decades we have made significant progress in this regard. But this is a long-term commitment, requiring a standing engagement and overview from the political level, as well as a predictable financial perspective.

As to the latter, we have been able to secure (since 2001) in our state budget the steady proportion of 1.95 percent of GDP annually for defense. This achievement places us among those few NATO and EU member states that keep their defense spending at a level which allows [them] to increase [their] military capabilities.

Looking at the shape of our armed forces, I would say that there are domains in which our army is relatively modern, up to the NATO standards.

Our F-16s, onshore anti-ship missiles or the ROSOMAK armored personnel carriers are certainly positive examples. But there are domains where we still have to undertake serious efforts to catch up. This applies first and foremost to our air defense and our navy. The expectation to modernize these capabilities was expressed by President Komorowski and Prime Minister Tusk. We are in the process of consolidation of specific plans [concerning] how to develop [or] acquire these capabilities till 2030. A new modernization plan for the years 2013-22, partially responding to these challenges, should be finalized by

Poland needs to ensure a “substantial contribution to NATO,” says Mr Siemoniak efforts around the world. That is why we were in Iraq, and still are in Afghanistan. This is also a visible sign of our commitment to NATO. During its latest summit in Chicago, NATO formally adopted the doctrine of Smart Defense. What does this mean in practice?

It is an expected response to our common needs in the time

work and use its potential to the full. But it certainly provides prospects for some new quality in capability development. Poland perceives it as a possibility to engage further in multinational cooperation and get access to required capabilities. That is why we have volunteered to join a dozen projects with new options in sight.

We have to, however, be realistic and should not expect

“We have to find a balance between relying on others and counting on ourselves” of financial austerity. The initiative provides for more multinational cooperation, specialization and prioritization. This means that certain military projects oriented at acquiring new capabilities could be realized jointly, in groups of interested members, supporting the needs of the whole Alliance.

Such cooperation requires, of course, a high level of political confidence.

This is a new model. The Alliance is still struggling to finalize its conceptual frame-

miracles. Although this way of increasing military capabilities is important for us this should be perceived as complementary for our routine planning activities. Some aspects still have to find clarity. For example, the issue of availability of capabilities acquired in this way for other allies and the Alliance is still to be defined.

Also the European Union continues with a similar initiative called Pooling and Sharing.

There is an obvious need to ensure consistency between

these efforts.

You recently paid a visit to the US where you conducted extensive talks about the missile defense program to be built in Europe. Are you convinced that regardless of the outcome of the US presidential election, that program will be realized and that the interceptor base will be installed in Poland in 2018?

The legal agreement on the anti-missile interceptor base between the governments of Poland and the US came into force last September. Thus this is a legally binding commitment.

The preparations for the work on the ground are also progressing. Hence I expect this project to continue. After my talks in Washington, among others with the Secretary [of Defense Leon] Panetta and the Head of the Missile Defense Agency, I am confident that the program is not in doubt.

The initial stage of the missile shield in Europe has been recently accomplished – there is an early warning radar located in Turkey and the anti-missile AEGIS systems installed on ships in the Mediterranean Sea. There is a timetable for the completion of the second

stage of the system, which will be located on the ground, in Romania. The following stage, on Polish soil, is expected to be realized in 2018. All these stages have financial support from the US Congress.

Furthermore, the whole program of missile defense in Europe is realized within the framework of NATO, with the decisive participation of the US and the political decisions about the missile defense system in Europe have been taken jointly by all allies.

As to the context of the American presidential election, let me say that the current plan rests on the decisions of President Obama. One should bear in mind, however, that the Republicans always wanted to develop a similar program and went even further in shaping the content of this project.

Thus I do not expect the program of missile defense to be directly dependent on the results of the presidential election in November. I believe the last stage of the system could pose a political challenge in the future, providing the ability of preventing attacks from intercontinental ballistic missiles.

Yet I am also optimistic about the possibility of finding a com-

INTERVIEW

SEPTEMBER 3-9, 2012

promise on the issue.

There is already firm Russian opposition to building the NATO missile defense system in Europe. How do you see this situation?

The issue of NATO’s missile shield is a NATO decision and no other country should have a right of veto in this regard. This is a matter of principles for allies. Since this is a defensive system we continue to believe that the shield should be developed regardless of any objections by other countries.

By all means, there is a space for cooperation with third partners, especially Russia, on the issue. As agreed during the previous NATO summit in Lisbon, NATO and Russian MD systems could be interconnected and could both contribute to the security of a broadly understood Euro-Atlantic area.

Poland supports such an option.

We believe a compromise is possible and desired.

This should not, however, be seen as a precondition for the development of an allied system – the work on NATO’s part should continue despite the political difficulties in the discussion with the Russian side.

How is the process of establishing an American aviation base in Poland progressing? It has also aroused Russian protests.

The process is on the right track. This project is being realized on the basis of a PolishAmerican bilateral agreement.

According to the schedule an American contingent, including F-16 multirole fighters and military personnel will be deployed on a rotational basis in Lask aviation base. From my perspective it is a symbolic and important event. For the first time US troops will be present on Polish soil “almost permanently” serving as evidence of close cooperation and a real alliance between our countries.

I want to underline that the presence of the American Aviation Detachment should be perceived only in that way. This is a relatively small contingent.

As such it cannot pose any threat to any country.

One of the biggest tasks you are facing is connected with the end of the NATO operation in Afghanistan and the withdrawal of troops by 2014.

Poland accepts this end date and is obligated to organize the withdrawal of Polish soldiers and equipment. What steps have to be taken by the Ministry of Defense?

At the beginning of this year the General Staff of the Polish Armed Forces prepared the concept of the withdrawal of our forces from Afghanistan.

As to the equipment, some of it will return to Poland. The rest, due to high transport costs, will be utilized or donated to the Afghan forces. We are conducting negotiations to

do this safely and efficiently in cooperation with our allies. In addition, thanks to multinational initiatives that Poland participates in, we have access to some specific transport capabilities. Of course we will also use our own logistics [capabilities]. Given this, I don’t expect to face significant problems with the withdrawal of the equipment and personnel.

Earlier this year, a bill concerning veterans was enacted into law. It concerns soldiers who serve outside our country. It is a desired step but I’ve come across many opinions claiming that your Ministry is not efficiently applying the act and that the experience gained by veterans during their missions is not properly used by our army.

How do you respond to this?

We have prepared two big informational campaigns about this [act] in which the president and prime minister were engaged. But of course more can always be done.

What is important for me is that veterans who were injured in missions and operations can enjoy significant benefits, such as rehabilitation and easier access to hospital treatment.

These 500 to 600 veterans are our priority and we try to reach them in the first place.

We do quite a lot to help them and their families. We also want to help as many of them as possible to return to our armed forces. I must say I do not agree with the opinions expressed by some media that the experience and abilities of veterans are not adequately used. Thousands of our officers and soldiers were participating in operations outside of our territory: in Afghanistan, Iraq or Chad. Many of them were promoted and entrusted with important duties. They are changing our forces which are now significantly different than 10 years ago.

There are also critical opinions expressed by some military experts, even generals such as Roman Polko, that we have very outdated structures of command. According to some American officers serving in Afghanistan, middle level commanders are tied by bureaucracy and are afraid of

taking decisions during their combat duties. Could you comment on this?

I agree with this opinion to some extent. Since 1989 we have reduced 400,000 soldiers to 100,000 and we have changed the profile of the armed forces from a conscription-based force to a professional one.

However certain structures of command and control at the strategic level remained unchanged. We are aware of the problem. A couple of weeks ago legal amendments that effect the central command system were presented.

They refer to the problem of adjusting the command structures to the size of our forces, reducing bureaucracy and improper proportion between the number of senior positions at headquarters and in units deployed. It applies also to the model of the military career.

My intention is to promote real professionals in all structures.

We assume that the whole reform will start to be implemented from January 2015.

Your tenure comes during the second term of the Civic Platform-Polish People’s Party government and it has been one year since you were appointed to the position of Minister of National Defense.

Which decisions, taken so far, do you consider to have been the most difficult?

Certainly the decisions I made in reaction to the Miller Commission’s report on the Smolensk catastrophe were very difficult. I decided to dissolve the 36th Special Air Transport Regiment and dismiss senior officers in the Air Force. I did it in a very difficult political climate. I also made decisions concerning transport means for top politicians and other VIPs, replacing military planes with planes and crews hired from Polish Airlines. ●

Editor’s note: This interview, originally conducted in Polish, has been heavily redacted by Poland’s Ministry of National Defense. WBJ therefore chose only to make light edits, meaning it doesn’t read as smoothly as it might. The decision to publish the text as it stands was made due to the significance of the issues it addresses.

Defense spending Structure of Poland’s military budget, 2012 Expenses on military and civilian personnel 4.0% 8.3%

3.3% Capital Investment 26.3% Pensions

12.9%

Other O&M expenditures O&M Central Support 20.8%

24.4% Subsidies Other services

Source: Ministry of Defense

www.wbj.pl

21

22

THE LIST

www.wbj.pl

SEPTEMBER 3-9, 2012

Top Investors in Special Economic Zones Listed alphabetically by name of zone

www.bookoflists.pl Company name Address, Tel./Fax, E-mail, Web page

Capital invested in SEZ (z∏. mln)

Activity

Selected investments

Employment in SEZ / Year founded in Poland

Country of origin

Top local executive / Title

EURO-PARK MIELEC SEZ Kronospan Mielec Sp. z o.o. ul. Wojska Polskiego 3, 39-300 Mielec, 17 582-2200 /17 582-2300 mielec@kronospan.pl, www.kronospan.pl BRW Sp. z o.o. ul. Wojska Polskiego 3, 39-300 Mielec, 17 788-0600/17 788-0616 marketing1@brwmielec.net, www.brwmielec.pl Kirchhoff Polska Sp. z o.o. ul. Wojska Polskiego 3, 39-300 Mielec, 17 788-5600/17 788-5640 www.kirchhoff.pl Polskie Zak∏ady Lotnicze Sp. z o.o. ul. Wojska Polskiego 3, 39-300 Mielec, 17 788-7921/17 788-7829 pzl@pzlmielec.com.pl, www.pzlmielec.pl MTU Aero Engines Polska Sp. z o.o.

Taj´cina 108, 36-002 Jasionka, 17 771-0482/17 771-0240 www.mtu-polska.com

968.1

Timber industry

WND

440 1997

WND

Tomasz Jaƒczak

434.1

Furniture production

WND

1,204 1996

WND

Tomasz Ostrowicki

266.4

Automotive industry

WND

777 1998

WND

Janusz Soboƒ

251.3

Production of aviation equipment

WND

2,102 1999

WND

Janusz Zakr´cki

248.5

Production of components for aircraft engines

WND

418 2009

WND

Krzysztof Zuzak

President

President

President

President

Board Member

KAMIENNA GÓRA SEZ BDN Sp. z o.o., Sp.k. ul. Motorowa 1, 04-335 Warszawa, 22 517-0123

WND

Printing house

WND

405 2006

Germany

WND

POLCOLORIT SA ul. Jeleniogórska 7, 58-573 Piechowice, 75 754-7310

WND

Ceramics

WND

125 2006

Poland

WND

TAKATA-PETRI PARTS POLSKA Sp. z o.o. ul. Betlejemska 16, 58-405 Krzeszów, 75 744-9110

WND

Safety belts

WND

459 2002

Japan

WND

TBAI POLAND Sp. z o.o. ul. Wyzwolenia 56, Wykroty, 59-730 Nowogrodzieniec, 75 647-9900

WND

Automotive industry

WND

100 2010

Japan

WND

WEPA PROFESSIONAL PIECHOWICE SA ul. Tysiàclecia 49, 58-573 Piechowice, 75 754-7800/75 754-7855 www.fpp.com.pl

WND

Paper industry

WND

306 2007

Germany

WND

KATOWICE SEZ General Motors Manufacturing Poland Sp. z o.o. ul. A. Opla 1, 44-100 Gliwice

2,832.0

Automotive industry

WND

2,862 1996

US

Andrzej Korpak

1,353.0

Automotive industry

WND

843 2006

Italy

Emanuele Lorenzin

961.3

Automotive industry

WND

1,195 2003

Japan

Matsuda Hiroto

Fiat Powertrain Technologies ul. Gra˝yƒskiego 141, 43-300 Bielsko-Bia∏a

821.3

Automotive industry

WND

305 2008

Italy

Emanuele Lorenzin

Isuzu Motors Polska Sp. z o.o. ul. Towarowa 50, 43-100 Tychy

648.5

Automotive industry

WND

595 1997

Japan

Grzegorz Buchal

Fiat Powertrain Polska Sp. z o.o. ul. Gra˝yƒskiego 141, 43-300 Bielsko-Bia∏a, 33 813-5766/33 813 24 51 www.fiat-gm-pwt.com.pl NGK Ceramics Polska Sp. z o.o. ul. Gutenberga 6, 44-109 Gliwice, 32 780-7000 k-hama@ngk.com.pl, www.ngk.com.pl

Board Member

Vice President

KOSTRZYN-S¸UBICE SEZ Barlinek Inwestycje SA ul. Przemys∏owa 1, 74-320 Barlinek, 95 747-1300/95 747-9301 office@barlinek.com.pl, www.barlinek.com.pl ICT Poland Sp. z o.o. ul. W∏oska 3, 66-470 Kostrzyƒ nad Odrà, 95 733-6800/95 733-6801 www.foxy.com.pl Homanit-Polska Sp. z o.o., Sp.k. ul. Ko∏obrzeska 17-19, 78-230 Karlino, 94 310-0400/94 310-0405 karlino@homanit-polska.pl, www.homanit.pl Faurecia Gorzów Sp. z o.o. ul. Szczeciƒska 31, 66-400 Gorzów Wielkopolski 95 721-9300/95 721-9309, www.faurecia.com TPV Displays Polska Sp. z o.o. ul. Z∏otego Smoka 9, 66-400 Gorzów Wielkopolski, 95 739-1005

426.7

Timber industry

WND

1,422 2004

Poland

WND

414.2

Paper industry

WND

366 1999

Italy

WND

356.6

Timber industry

WND

370 2004

Germany

WND

275.0

Automotive industry

WND

777 2002

Spain

WND

188.5

Electronics

WND

1,187 2007

China

WND

KRAKÓW TECHNOLOGY PARK MAN Trucks Sp. z o.o. ul. Rudolfa Diesla 1, 32-005 Kraków, 12 253-0000/12 253-0001 www.man.eu R.R. Donnelley Poland Sp. z o.o. ul. Igo∏omska 25, 31-983 Kraków, 12 652-6100/12 652-6102 europeinfo@rrd.com, www.rrdonnelley.eu.com ComArch SA Al. Jana Paw∏a II 39A, 31-864 Kraków, 12 646-1000/12 646-1100 info@comarch.com, www.comarch.pl

463.6

Automotive industry

Construction of production plant in Niepo∏omice

428 2007

Germany

WND

248.6

Printing

Construction of printing house

850 2001

US

WND

213.5

Computer software

WND

2,327 2000

Poland

WND

Nidec Motors & Actuators (Poland) Sp. z o.o. ul. Skarbowa 36, 32-005 Niepo∏omice, 12 297-2700/12 297-2702

44.7

Automotive industry

Construction of new facilities

368 2006

Japan

WND

Shell Polska Sp. z o.o. ul. Krakowska 280, 32-080 Zabierzów, 12 378-5000/12 392-0540

21.1

IT

Construction of new facilities

1,348 2001

Netherlands

WND

LEGNICA SEZ Volkswagen Motor Polska Sp. z o.o ul. Strefowa 1, 59-101 Polkowice, 76 848-3001/76 848-3400 vwmp@vwmp.com.pl, www.vwmp.com.pl Sitech Sp. z o.o. ul. Strefowa 2, 59-101 Polkowice, 76 726-7000/76 726-7070 www.sitech-sitztechnik.de.pl/standore/polkowice-po

1,531.5

Car engine production

WND

1,236 1999

Netherlands

Christian Bleiel

845.1

Car seat production

WND

1,478 1999

Germany

Hans Joachim Schreiner

Winkelmann Sp. z o.o. ul. Jaworzyƒska 277, 59-220 Legnica, 76 850-8866/76 850-8905

574.1

Water heater production

WND

1,055 1998

Germany

Heinrich Winkelmann JR

Sanden Manufacturing Poland Sp. z o.o. ul. Fabryczna 11, 59-101 Polkowice, 76 724-9114 /76 724-9107 www.sandensmp.pl

344.1

Air conditioning

WND

481 2004

Japan

Norio Kanikura

Gates Polska Sp. z o.o. ul.Jaworzyƒska 301, 59-220 Legnica, 76 855-1000, www.gates.com

272.1

Belting

WND

527 2000

US

Adam Mrzyg∏ód

President

President

President

President

Board Member

THE LIST

SEPTEMBER 3-9, 2012

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

Capita invested in SEZ (z∏. mln)

Activity

www.wbj.pl

Selected investments

Employment in SEZ Year founded in Poland

Country of origin

Top local executive Title

Ali Ganioglu

23

¸ÓDè SEZ Gillette Poland International Sp. z o.o. ul. Nowy Józefów 70, 94-460 ¸ódê, 22 678-5544/42 272-7230 biuroprasowe.im@pg.com, www.gillette.pl EUROGLAS Polska Sp. z o.o. os. Niewiadów 65, 97-225 Ujazd, 44 719-4000/44 719-4999 ujazd@euroglas.com, www.euroglas.com Procter & Gamble Operations Polska Sp. z o.o. ul. Zabraniecka 20, 03-872 Warszawa, 22 678-5544/22 678-8664 www.pg.pl Indesit Company Polska Sp. z o.o. ul. Dàbrowskiego 216, 93-231 ¸ódê, 42 645-5001 service.pl@indesit.com, www.indesit.pl Ceramika Parady˝ Sp. z o.o. ul. Piotrkowska 61, 26-300 Opoczno, 44 736-4100/44 736-4106 info@paradyz.com.pl, www.paradyz.com

969.7

Electric shaver production

Construction of production plant, packing and distribution center

1,248 1992

Netherlands

832.4

Glassworks

Flat glass plant

310 WND

Germany

616.3

Cosmetic and hygienic goods production

Construction of production plant

1,127 1991

Netherlands

Marek KapuÊciƒski

535.3

Home appliance production

WND

1,702 1999

Italy

Antonio Melone

406.9

Ceramic tiles

WND

1,118 1989

Poland

Pawe∏ ¸uczka

President

Piotr Noga General Director

President

General Director

President

POMERANIAN SEZ Bridgestone Stargard Sp. z o.o. ul. Most Kamienny 7, 73-110 Stargard Szczeciƒski www.bridgestone.pl

WND

Tire production

Construction of production plant

WND 1998

Belgium

Hiroyuki Osaki

International Paper Kwidzyn Sp. z o.o. ul. Lotnicza 1, 82-500 Kwidzyn, www.ipaper.com.pl

WND

Paper industry

WND

WND 1990

France

Marek Krzykowski

Mondi Âwiecie SA ul. Bydgoska 1, 86-100 Âwiecie, info.swiecie@mondigroup.com www.mondigroup.com

WND

Paper industry

Machinery acquisition

WND WND

Netherlands

Maciej Kunda

Sharp Manufacturing Poland Sp. z o.o.

Ostaszewo 57B, 87-148 ¸ysomice, www.sharp.pl

WND

LCD TVs and module production

Construction of production plant

WND 2006

Japan

Nobuo Harada

Zak∏ady Farmacuetyczne POLPHARMA SA ul. Pelpliƒska 19, 83-200 Starogard Graƒski, www.polpharma.com

WND

Pharmacueticals

WND

WND 1935

Netherlands

Jacek Glinka

President

President

President

President

President

S¸UPSK SEZ Jeronimo Martins Dystrybucja ul. Strefowa 9, 75-202 Koszalin, 94 732-2400, www.biedronka.pl Kronospan Polska Sp. z o.o. ul. Waryƒskiego 1, 78-400 Szczecinek, 94 373-0100/94 373-0109 kancelaria.szczecinek@kronospan.pl, www.szczecinek.kronospan.pl Nordglass II Sp. z o.o. ul. Strefowa 3, 75-950 Koszalin, 94 346-5731/94 346-5715 jaan@jaan.pl, www.nordglass.pl Ozen Plus Sp. z o.o. ul. Budowlanych 9, 78-600 Wa∏cz, 67 258-9680/67 258-9072 info@ecwalcz.eu, www.ecwalcz.eu Paula Trans Sp.j. Janina Gojdê & S∏awomir Gojdê ul. Braci Staniuków 18, 76-200 S∏upsk, 59 848-9219 www.paulatrans.pl

WND

Distribution and logistics

WND

WND 2009

Portugal

WND

WND

Timber industry

WND

WND 2005

WND

Joanna Jod∏owska; Tomasz Jaƒczak Board Members

WND

Car windows

WND

WND 2004

Poland

Grzegorz ¸ajca

WND

Green energy

WND

WND 2007

Poland

Andrzej Kowalczyk

WND

Transport

WND

WND 2005

Poland

S∏awomir Gojdê

President

President

Owner

STARACHOWICE SEZ Air Liquide Polska Sp. z o.o. Oddzia∏ w Pu∏awach ul. Josepha Conrada 63, 31-357 Kraków, 12 627-9300/12 627-9333 airliquide.polska@airliquide.com, www.pl.airliquide.com Fabryka Kot∏ów SEFAKO SA ul. Przemys∏owa 9, 28-340 S´dziszów, 41 381-1073/41 381-1110 info@sefako.com.pl, www.sefako.com.pl MAN Bus Sp. z o.o. Oddzia∏ w Starachowicach ul. 1. Maja 12, 27-200 Starachowice, 41 273-4110/41 273-4111 bazyla.miller-surdy@man.eu, www.man.eu R.R. Donnelley Starachowice Sp. z o.o. ul. Bema 2C, 27-200 Starachowice, 41 888-7600/41 888-7602 starachowice.secretaries@rrd.com, www.rrdonnelley.eu.com Starpol II Sp. z o.o. ul. Radomska 39A, 27-200 Starachowice, 41 273-8120/41 273-8144 biuro@starpol.pl, www.starpol.pl

WND

Power engineering

WND

WND 1995

France

Rui Coelho

WND

Metal industry

WND

WND 1974

Poland

Jerzy ¸askawiec

WND

Automotive industry

WND

WND 1998

Germany

Michael Kobriger

WND

Printing

WND

WND WND

US

WND

WND

Electrical engineering

WND

WND 1990

Poland

Edward P∏usa

President

President

President

President

TARNOBRZEG SEZ Dongseo Display Poland Sp. z o.o. ul. Wspó∏pracy 1, Biskupice Podgórne, 55-040 Kobierzyce 71 774-8225/71 774-8279 Heesung Electronics Poland Sp. z o.o. ul. Innowacyjna 1, Biskupice Podgórne, 55-040 Kobierzyce 71 771-1082/71 771-1084 LG Electronic Wroc∏aw Sp. z o.o. ul. LG Electronics 1-2, Biskupice Podgórne, 55-040 Kobierzyce 71 792-9400/71 792-9405, lge.wroclaw@lge.com, www.pl.lge.com LG PHILIPS LCD POLAND Sp. z o.o. ul. LG Electronics 1-2, Biskupice Podgorne, 55-040 Kobierzyce 71 792-9400/71 792-9405, lge.wroclaw@lge.com, www.pl.lge.com UPM RAFLATAC POLSKA Sp. z o.o. ul. Fiƒska 1, Biskupice Podgórne, 55-040 Kobierzyce 71 776-5000/71 776-5001, www.upmraflatac.com

WND

LCD component production

WND

WND 2006

South Korea

Sunhwa Jang

WND

LCD component production

Construction of production plant

WND 2006

South Korea

Jong dae Koo

WND

Electric household equipment production

Construction of production plant

WND 2005

South Korea

Jun Myeon Seong

WND

Electric household equipment production

WND

WND 2005

South Korea

Jung Ung Yeu

WND

Adhesive laminates

WND

WND 2007

Finland

Dirk Von Gehelen

Piotr Freyberg

WA¸BRZYCH SEZ 3M Wroc∏aw Sp. z o.o. ul. Kowalska 143, 51-424 Wroc∏aw

WND

Plastics

WND

WND 2007

US

Electrolux Poland Sp. z o.o. ul. Kolejowa 5/7, 01-217 Warsaw 22 434-7300/22 434-7302

WND

Electric household equipment production

WND

WND 2004

Sweden

Kraft Foods Polska Confectionery Production Sp. z o.o. ul. Smaków 1, 49-318 Skarbimierz

WND

Food industry

WND

WND 2006

UK

NSK Steering Systems Europe Polska Sp. z o.o. ul. Jachimowicza 17, 58-306 Wa∏brzych

WND

Automotive industry

WND

WND 2001

Japan

Ichirou Terakawa

Toyota Motor Manufacturing Poland Sp. z o.o. ul. Uczniowska 26, 58-306 Wa∏brzych, 74 888-8000/74 888-8003 office@toyotapl.com, www.toyotapl.com/walbrzych/

WND

Manual and semi-automatic gearbox and petrol engine production

WND

WND 2006

Japan

Carl Klemm

Notes: Notes: WND = Would Not Disclose. Only the top five investors in every Special Economic Zone are listed here, ranked by amount of capital invested (where possible). Selected report data were provided by each SEZ individually. Investors in SEZs which haven’t disclosed data are listed alphabetically. Research for the list was conducted in February 2012.

President

Adam Cich General Director

Ian O’toole Board Member

President

President

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. Monika Brysiak, 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.

24

MARKETS

www.wbj.pl

SEPTEMBER 3-9, 2012

Stocks report

world stock indices DJIA

NASDAQ

S&P500

FTSE100

DAX

A strong finish

NIKKEI225

13,000.71 (Aug 30 close)

3,048.71 (Aug 30 close)

1,399.48 (Aug 30 close)

5,719.50 (Aug 30 close)

6,895.49 (Aug 30 close)

8,983.78 (Aug 30 close)

-0.43% (for the week)

-0.15% (for the week)

-0.19% (for the week)

-0.99% (for the week)

-0.78% (for the week)

-2.12% (for the week)

CHANGE: 4.87%

CHANGE: 15.10%

CHANGE: 9.59%

CHANGE: 0.34%

CHANGE: 13.50%

CHANGE: 4.95%

(year to Aug 30)

(year to Aug 30)

(year to Aug 30)

(year to Aug 30)

(year to Aug 30)

(year to Aug 30)

52-week high: 13,279.32

52-week high: 3,120.00

52-week high: 1,419.04

52-week high: 5,965.60

52-week high: 7,157.82

52-week high: 10,255.20

52-week low: 10,655.30

52-week low: 2,335.83

52-week low: 1,099.23

52-week low: 4,944.40

52-week low: 5,072.33

52-week low: 8,165.00

Last week started slowly on the Warsaw Stock Exchange, largely due to a bank holiday in the UK and the lack of any major fluctuations in the Asian and European markets. On Monday. both the overall WIG and the bluechip WIG20 lost 0.27 percent, with the turnover having amounted to just slightly over z∏.360 million.

Sentiment improved somewhat on Tuesday, after the publication of the S&P/Case Shiller homeprice index for 20 US cities.

The turnover on the day reached z∏.520 million and the best performing bluechip companies included PKN Orlen, Citi Handlowy, PGE, BRE and Pekao.

Wednesday did not see the publication of any major macroeconomic data except for a revision of US GDP for Q2 which, however, did not

Major indices WIG

41,077.44 (August 30 close)

WIG20

2,227.08 (August 30 close)

30.08

29.08

28.08

27.08

24.08

23.08

22.08

21.08

20.08

17.08

16.08

14.08

13.08

30.08

29.08

28.08

27.08

24.08

23.08

22.08

21.08

20.08

2,100

17.08

39,000

16.08

2,160

14.08

39,800

13.08

2,220

10.08

40,600

09.08

2,280

08.08

41,400

07.08

2,340

06.08

42,200

03.08

2,400

02.08

43,000

10.08

52-week low: 2,035.80

09.08

Change year to August 30: 1.50%

08.08

52-week low: 36,549.47

07.08

52-week high: 2,450.95

Change year to August 30: 7.20%

06.08

Change for the week: -2.24%

03.08

52-week high: 42,408.41

02.08

Change for the week: -1.72%

Top 5 WILBO ONE2ONE OPTEAM PCGUARD KINOPOL

Closing 0.31 0.41 2.58 0.90 9.51

% change (week) 52-week high 55.00 1.07 28.13 4.20 22.86 4.95 21.62 1.72 20.99 10.00

52-week low 0.09 0.21 1.54 0.72 5.00

Top 5 PKNORLEN GTC CEZ BZWBK PGNIG

Closing 38.72 6.34 126.90 232.60 4.05

% change (week) 3.92 2.26 1.52 1.13 0.75

52-week high 41.68 12.75 141.50 237.00 4.39

52-week low 30.33 5.13 111.90 207.80 3.61

Bottom 5 08OCTAVA ECARD BOMI POLIMEXMS EKOEXPORT

Closing 0.57 0.19 0.26 0.48 12.80

% change (week) -83.85 -24.00 -23.53 -22.58 -20.00

52-week low 0.55 0.18 0.25 0.46 4.28

Bottom 5 POLMIEXMS PBG TVN PZU ASSECOPOL

Closing 0.48 5.71 7.06 336.10 44.27

% change (week) -22.58 -8.64 -6.74 -6.09 -5.30

52-week high 2.09 98.30 15.98 372.90 55.45

52-week low 0.46 5.21 7.01 283.10 34.60

52-week high 3.95 0.31 4.65 2.09 24.95

sWIG80

The z∏oty tumbles

9,283.99 (August 30 close)

WIG-Banki

5,943.43 (August 30 close)

30.08

29.08

28.08

27.08

24.08

23.08

22.08

21.08

20.08

17.08

16.08

14.08

13.08

30.08

29.08

28.08

27.08

24.08

23.08

22.08

21.08

20.08

17.08

5,600

16.08

33.0

14.08

5,740

13.08

33.4

10.08

5,880

09.08

33.8

08.08

6,020

07.08

34.2

06.08

6,160

03.08

34.6

02.08

6,300

10.08

52-week low: 4,944.19

09.08

Change year to July 30: 7.07%

08.08

52-week low: 33.90

07.08

52-week high: 6,237.06

Change year to July 30: -17.47%

06.08

Change for the week: -2.38%

03.08

52-week high: 43.99

02.08

Change for the week: -1.18%

35.0

The closer we get to the end of summer, the more interesting the situation on the currency markets becomes.

What has been driving the markets lately is hope that central banks will intervene to provide stimulus to their economies. These hopes lifted the EUR/USD from $1.23 to $1.26 just before the beginning of the US Federal Reserve’s meeting in Jackson Hole. The outcome of the meeting will have a big effect on markets – and emerging markets’ currencies – this week.

The z∏oty market experienced quite a shock last week. Much of this was due to the release of disappointing Polish GDP growth data for the second quarter. At 2.4 percent, it was well below expectations.

More damage was done

by National Bank of Poland president Marek Belka, who

30.08

29.08

28.08

27.08

24.08

23.08

22.08

21.08

20.08

17.08

16.08

14.08

52-week low: 8,218.71

10.08

09.08

30.08

29.08

28.08

27.08

24.08

23.08

34.24 (August 30 close)

Adam Narczewski X-Trade Brokers DM SA

52-week high: 10,536.29

SOURCE: WSE

NewConnect

22.08

21.08

20.08

9,200

17.08

2,200

16.08

9,260

14.08

2,220

13.08

9,320

10.08

2,240

09.08

9,380

08.08

2,260

07.08

9,440

06.08

2,280

03.08

9,500

02.08

2,300

08.08

Change year to July 30: 7.90%

07.08

52-week low: 2,076.52

06.08

Change year to July 30: 0.95%

03.08

Change for the week: -1.18%

02.08

52-week high: 2,561.94

13.08

2,211.09 (August 30 close)

Change for the week: -3.40%

Adam Zdrodowski

Currency report

Other indices mWIG40

have a major impact on the market. In the end, the WIG20 shed 0.79 percent, while the turnover amounted to z∏.680 million.

Thursday saw the release of data which showed that Poland’s economy had grown by 2.4 percent y/y in the second quarter, while analysts had expected an increase of approximately 3 percent. The discrepancy brought some unrest to the market and the WIG20 recorded another drop, of 0.38 percent.

Despite discomforting macroeconomic data from Japan and Germany, the Friday session was unexpectedly marked by increased buyer activity.

The turnover exceeded z∏.1.2 billion, a very high volume considering the levels of activity seen in previous days, and the WIG20 gained 1.4 percent.

stated that the interest-rate setting Monetary Policy Council, which he heads, is changing its approach, and that we should be expecting an interest rate cut rather than an interest rate increase in upcoming months. The z∏oty tumbled, with the EUR/PLN breaking through important resistance levels and reaching z∏.4.20 last Friday. The USD/PLN climbed to z∏.3.36, but the dollar’s depreciation at the end of the week helped the z∏oty to regain some ground.

The market’s reaction to Mr Belka’s words comes as a surprise to me, since all signs were showing a slowdown and a possible interest rate cut would simply be the logical course of action.

The z∏oty’s depreciation will stop if global sentiment improves, and that depends greatly on the decisions made by on central banks. ●

currency rates 4.2460 31.08

SOURCE: NBP

4.2473

28.08

30.09

4.1593

27.08

4.2128

4.1611

4.1385

24.08

0.1033

0.1027 31.08

4.0

29.08

PLN-100JPY

4.5

30.09

0.1028 29.08

0.1023

0.1028

0.1020 28.08

27.08

31.08

30.09

29.08

28.08

27.08

24.08

3.4839

0.105

0.100

24.08

PLN-RUB

0.110

3.4911

3.4592

3.4091

3.4147

5.2756 31.08

30.09

3.3

3.3959

PLN-CHF

3.5

5.2828

5.2321 29.08

5.1558 28.08

27.08

5.1783 24.08

3.3353 31.08

5.0

5.1523

PLN-GBP

5.5

3.3397

3.3081 29.08

3.2685 28.08

3.2570 27.08

31.08

30.09

29.08

28.08

27.08

24.08

3.2680

4.1838

4.1919

4.0950

4.1540

4.0783 4.1012

3.0

24.08

4.0

PLN-USD

3.5

30.09

PLN-EUR

4.2

SPORTS

SEPTEMBER 3-9, 2012

www.wbj.pl

Boxing

Motorsport

Wladimir Klitschko to fight Poland’s Mariusz Wach

Robert Kubica test-drives rally car: reports

The two men will go head to head in Hamburg this November

Polish motorsport driver Robert Kubica has reportedly been involved in secret tests of Ford’s new rally car, leading to speculation that he is preparing to resume his Formula One career.

Ford’s technical director Christian Loriaux said in a statement that Ford rally drivers Petter Solberg and JariMatti Latvala, as well as an unnamed driver who does not want publicity, were involved in testing the new car. The third driver was widely reported to be Mr Kubica, who has been out of motor racing since he was involved in a horrific crash that caused his right forearm to be partially severed while competing at the Ronde di Andora rally, in February 2011.

Speaking about the unnamed driver, Mr Loriaux said, “He arrived at his own expense and worked diligently.

Before the tests, he told me he did not know if he could do it physically, but it turned out that it was not a problem for him.”

COURTESY OF FACEBOOK/WLADIMIRKLITSCHKO

Wladimir Klitschko

prove to be a genuine test.

“The big challenge for me is Wach’s height. It is the first time that I am facing an opponent who is taller than me and has a better reach. He is unbeaten, a big puncher and has an irrepressible will,” Mr Klitschko said.

His elder brother Vitali Klitschko will defend his WBC heavyweight title against Manuel Charr in Moscow, on David Ingham September 8.

The Polish F1 driver has been out of action since February 2011

COURTESY OF WIKIMEDIA COMMONS

Poland’s undefeated heavyweight boxer Mariusz “The Viking” Wach will take on current WBA, IBF, WBO, IBO and The Ring heavyweight champion of the world Wladimir Klitschko (who spells his first name with a W, even in English), in Hamburg on November 10, it was announced last week.

The 32-year-old Pole, who has a record of 27 wins (including 15 KOs) and 0 losses, will face the toughest night of his professional career when he comes up against the man known as Dr Steelhammer.

However Mr Wach’s size, standing as he does at 6 feet 7.5 inches (2.02 meters), compared to Mr Klitschko’s 6 feet and 6 inches, means he is a genuine heavyweight whose height could trouble the champion.

“My fellow countrymen Adamek and Sosnowski did not have what it takes to beat a Klitschko [brother]. I am not a

former cruiserweight but a real heavyweight. Klitschko will take a lot of hard punches before I knock him out,” Mr Wach said.

“I will be the first Polish world heavyweight champion,” the challenger added.

For Mr Klitschko, who has a record of 58 wins and 3 losses, including two victories in 2012 against France’s Jean-Marc Mormeck and American Tony Thompson, the fight could

25

Robert Kubica However even if Mr Kubica did take part in the tests, twotime Formula 1 World Champion Fernando Alonso said he is still unsure if the Polish driver will ever make a comeback.

“It’s very hard to say whether Robert will return to 100 percent fitness and be able to race again in Formula One,” he told September’s edition of F1 Racing maga-

zine.

“Now and again we speak and I know how much it hurts him to be so far away from what has always been his world. He has to keep calm and think first and foremost about recovering total functionality of his body, then he can think again about racing,” he added.

David Ingham

26

LIFESTYLE

www.wbj.pl

Concert

SEPTEMBER 3-9, 2012

Exhibition

Coldplay in the capital The sex symbol and the tortured soul

COURTESY OF WIKIMEDIA COMMONS

“Hollywood Marilyn Monroe” by Milton Greene Until September 7 Stara Galeria ZPAF, Plac Zamkowy 8 Warsaw

Coldplay September 19 National Stadium Warsaw British band Coldplay will become the latest world-class act to play live at the National Stadium in Warsaw this year, with an upcoming concert to promote their new album “Mylo Xylo.”

Since being formed by singer Chris Martin and guitarist Jonny Buckland at

University College London in 1996, the group, which also includes Guy Berryman on bass and Will Champion on drums, have gone on to become one of the biggest bands in the world.

Their debut album “Parachutes” was released in 2000 and the group have since sold more than 55 million records worldwide.

Coldplay’s live performances are known for their use of audience participation, and

those with tickets for the Warsaw gig are set to be handed wrist bands which light up during the performance. And with a back catalog of hits including “Yellow,” “The Scientist,” “Fix you” and “Viva la Vida,” those in attendance can expect a classic set of old and new songs.

David Ingham

Tickets are priced from z∏.165 and can be purchased from livenation.pl

Although “Hollywood Marilyn Monroe” presents just a small fragment of the vast amount of work shot by prolific photographer Milton Greene, the images on display detail the essence of Mr Greene’s talent for capturing the private side

of some of the world's most iconic stars.

Back in the 1960s his images adorned the covers of titles including Harper’s Bazaar and Vogue, with Frank Sinatra, Audrey Hepburn, and Marlene Dietrich among the countless stars to have posed for him.

While this exhibition does feature some of Mr Greene’s other work, the core is anchored around Marilyn

Monroe. The Green/Monroe professional relationship was relatively short-lived, lasting from 1953-1957, but nevertheless still proved extremely fruitful. This groundbreaking exhibition presents two sides of Marilyn Monroe: the international sex symbol and the vulnerable, tortured soul.

David Ingham

For more information log on to zpaf.waw.pl

Street racing

The need for speed Verva Street Racing September 15, 9 am - 6 pm Pl. Pi∏sudskiego Warsaw For speed lovers and fans of some of the world's most expensive cars, this year’s Verva Street Racing event offers the perfect opportunity to see adrenaline-charged action up close and personal on Warsaw’s streets.

This year’s show starts

with a pit party where fans can meet the drivers before a classic racing duel between motorsport legends Andrzej Jaroszewicz and David Piper.

There will also be other racing events with current pro drivers, including former F1 champion Mika Häkkinen who will be showcasing the latest Mercedes A-class model, as well as a celebrity

race featuring movie stars and television personalities.

Added to this is the opportunity to see numerous classic cars such as the Aston Martin Vanquish, and the Maserati MC12 being put to the test at seriously high speeds.

David Ingham

For more information log on to vervastreetracing.pl

LAST WORD

SEPTEMBER 3-9, 2012

www.wbj.pl

27

Tech Eye

Techeye has learned some very important lessons recently. First: when harnessing a team of cats to a toy wagon, you should wear extremely thick gloves. Or sedate the cats. And second: the biggest beneficiaries of today’s patent laws are lawyers.

If you blinked even once in the direction of a news outlet last week, then you’re probably aware of the Apple v. Samsung verdict delivered by a California jury. However, if you’re one of those creepy folk who never blink at anything, then here’s the gist of it: Samsung was found guilty of “willfully” infringing a number of Apple patents, particularly those related to software and design; Apple was found not guilty of infringing Samsung’s patents.

The upshot is that Samsung now owes Apple at least $1 billion (a figure that may rise) and sales of the Galaxy S and SII smartphones will likely be banned in the US. Was it a fair decision? Depends who you ask.

To some, the verdict is proof that intellectual property rights are respected in America. Or American intellectual property rights, anyway.

To others, the verdict is proof that patent law – at least as regards things like software and design – does more harm than good, encouraging litigiousness and stifling innovation, particularly among smaller companies which often fall victim to “patent trolls” (firms that stockpile patents in order to shakedown legitimately innovative SMEs).

Let’s face it, though – consumers are the

COURTESY OF SAMSUNG

Make love and cat pictures, not patent war

clear losers in this patent war, in the short to medium term (admittedly, new features and devices may be spurred in the longer term).

Apple has had a taste of victory and may sue other companies; also, having to pay a tithe to Apple will cut competitors’ margins, forcing them to raise prices.

A richer, smugger Apple might be great for shareholders, but not necessarily for consumers.

The firm already has plenty of money for R&D and new products. And, for all its reputation as an innovator, Apple has a bad record of sticking to cumbersome proprietary standards and technologies long after they are outmoded. The 30pin dock connector is one prime example (though rumors indicate Apple may have finally capitulated on this, giving the iPhone 5 a new connector). The purposely byzantine file organ-

ization system employed by iPods is another.

This week Techeye is featuring one of Samsung’s latest products. It won’t take the sting out of that $1 billion verdict, but the firm can consider this a consolation prize of sorts. A very cheap, hastily written consolation prize.

Know this: the Galaxy Note 10.1 doesn’t infringe any patents. Probably. As its name indicates, this tablet has a 10.1-inch display. Also, it runs Android 4.0 and there’s a quad-core Exynos 4 chip under the hood. There are two storage-size options: 16 GB ($499) and 32 GB ($549).

The Galaxy Note 10.1 differentiates itself from competitors in two ways. First, it’s got a well-designed stylus, recognizing over 1,000 levels of pressure. And second, it offers a competently executed split-screen function, allowing true multitasking for perhaps the first time on a tablet. On the down side, the device costs about the same as an iPad with worse screen resolution and battery life.

Oh, one other thing – don’t expect photos taken with the Galaxy Note 10.1 to win a Pulitzer. The tablet has a 5-MP rear-facing camera and a 1.9-MP camera in the front, and both are underwhelming performers.

So if you’re going to stage elaborate photos to impress your friends on Facebook – photos of, say, a bunch of cats strapped to a little red wagon filled with beer and ice – do yourself a favor and use a real camera. And wear thick gloves. ●

Ever infringed a patent? Let us know: techeye.wbj@gmail.com

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

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

Galeria 022, DAP, Lufcik Królikarnia National ul. Mazowiecka 11a Gallery www.owzpap.pl ul. Pu∏awska 113a www.krolikarnia.mnw.art. pl Galeria 65 ul. Bema 65 www.galeria65.com Le Guern Gallery ul. Widok 8, www.leguern.pl Galeria Appendix 2 ul. Bia∏ostocka 9 Museum of www.appendix2.com Independence Aleja SolidarnoÊci 62 Galeria Asymetria www.muzeumniepodleglo ul. Nowogrodzka 18a www.asymetria.eu sci.art.pl Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

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

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

Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl

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

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

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

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