WBJ #13 2012

Coalition partners PO and PSL finally strike a deal on pension reform

5

3

Foreign Minister Sikorski lays out Poland’s foreign policy strategy 2

WWW.WBJ.PL

Stakes in 300 state-owned companies will be up for grabs in 2012-2013

VOLUME 18, NUMBER 13 • APRIL 2-8, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

REAL ESTATE

Made in Poland COURTESY OF TPS

Lokale Immobilia

A special report on Polish exports 11-14

COURTESY OF EWA MINGE

• Skanska homes • Poznaƒ warehouses • Olivia Business Centre 15-17

Fashion in focus: Ewa Minge The designer talks to WBJ about her new business plans 7

Interview: Ireneusz Krzemiƒski The sociology professor digs into the anxieties of Polish society 8-9

¸UKASZ MAZUREK/WBJ

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Fashion Industry in Focus . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . . . . .10 Made in Poland supplement .11-14 Lokale Immobilia . . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

CIA ‘black sites’

African gas bonanza

Poland charges a former intelligence chief over allowing the CIA to operate a secret detention center on its soil 3, 10

Jan Kulczyk stands to benefit from the discovery of massive gas reserves in Tanzania 5

NEWS

www.wbj.pl

Palikot and Miller won’t cooperate

is the forecast value of Polish food exports in 2012.

65% of Poles think that Poland will profit financially from the Euro 2012 soccer championship.

€0.4 billion

was the amount of money Polish companies invested in Germany during 2011.

6th is Poland’s position in a Bloomberg ranking of the most promising emerging markets in the world.

Quote of the Week

Poland will export about €15.5 billion worth of food products this year, according to Wies∏aw ¸opaciuk of the Institute of Agricultural and Food Economics. This would represent a 2.4% increase on 2011, much lower than last year’s 12% annualized growth rate, reported Rzeczpospolita. ●

RA

“A good terrorist is a dead terrorist” Former PM Leszek Miller responds when asked by Polish Radio what he thought of the allegations that, under his leadership, suspected terrorists were tortured in Poland by the CIA. Mr Miller has denied that he had any knowledge of the CIA detaining and torturing terrorism suspects in Poland.

Figures in focus Waste disposal Percentage of municipal waste that was landfilled in 2010, selected EU27 countries 100 80 60 40 20

ny rm a Ge

Ire

lan

d

ce Fra n

27

UK

EU

ece Po la Cz ech nd Re pu blic

0

Source: Eurostat

Company index Akrikhin ......................12 Global Insight ............11 Polish Investments

On WBJ.pl

There is growing reluctance between Palikot’s Movement and the Democratic Left Alliance (SLD) to cooperate with one another, reported Rzeczpospolita. The parties have now given up plans of any common endeavors, according to the daily.

Food export slowdown

April 10, 2010].”

Regarding Ukraine, Mr Sikorski said it would remain Poland’s most important “non-Atlantic” strategic partner. He said Poland was “ready to support [Ukraine] if it definitively chooses a European destiny.”

Mr Sikorski also talked about Poland’s standing in the world, pointing to a recent Organisation for Economic Co-operation and Development report which shows that Poland has recorded the fastest average economic growth out of all countries in the organization since 2007 (see story, p. 6.).

“Today we are associated with economic growth, modernity and effective management, we have become a partner who it is worth wooing,” he said. “Modern Poland is the best [Poland] we have ever had.”

Gre

plans.” He added that Poland would welcome “with open arms” the first permanent US military unit scheduled to be deployed on Polish soil as part of the defense-shield program.

He reminded parliament, however, that Poland expected the fulfillment of the promise made by President Barack Obama to lift visa requirements for its citizens.

Regarding Poland’s relations with countries located immediately to its east, Mr Sikorski said they are “much worse than we would like but significantly better than they have been in the past and better than they could be.”

He said Poland would continue to strive for “reconciliation” with Russia, adding, however, that the Polish government is “trying to secure the return of our property, the wreckage of the Tu-154 plane in which our leaders and our friends died [in Smolensk, on

ua nia

Addressing parliament early last Thursday, Foreign Minister Rados∏aw Sikorski outlined Poland’s foreign policy priorities for the years 2012-2016, pointing to Germany and the US as the country’s most important allies.

“Our most important partner in Europe, due to trade levels as well as an increasingly similar economic culture and political concept, is Germany,” Mr Sikorski said.

He added that even though Poland’s western neighbor was the strongest country in the EU, it needed more than one partner to allow it to realize its aims. “If you involve us in the decision-making process, you can count on Poland’s support,” Mr Sikorski said.

Regarding the US, the FM said Poland “is ready to realize the Polish-US agreement to build a missile-defense shield, although we know that the Americans could change their

ria

Three months before the Euro 2012 soccer championship kicks off in Poland, barely 64% of investments geared towards the event have been finished or realized according to plan, indicates data from PL.2012, which oversees preparations for the tournament. The value of investments that were supposed to be ready before Euro 2012 amounts to z∏.94.1 billion.

It is already known that investments worth an estimated z∏.13 billion will not be finished on time.

€15.5 billion

Polish foreign policy

Lith

Poland not ready for Euro 2012

Numbers in the News

lga

Poland’s main opposition party, Law and Justice (PiS), has accused Warsaw authorities of obstructing preparations for the second anniversary of the April 10, 2010 Smolensk airplane crash, reported Rzeczpospolita. Activists from PiS have submitted an application for a daylong peaceful demonstration involving approximately 20,000 people. The city council has asked PiS to take care of security and traffic control. PiS reportedly interprets these requirements as “sabotage.”

IN THE SPOTLIGHT

Bu

Smolensk anniversary dispute

APRIL 2-8, 2012

SHUTTERSTOCK

2

European masters As Poland gears up for this summer’s UEFA European Football Championship, WBJ.pl takes a look at some classic moments from the competition’s history.

DATELINE

April 17

REAL GREEN SYMPOSIUM & FAIR

Location:

Warsaw Marriott Hotel

Event:

Web:

ceeqa.com

Web:

Expert presentations, debate, discussion groups, workshops, exhibition and luncheon examining the business case for green building in emerging Europe.

Warsaw Marriott Hotel ceeqa.com/realgreen

17

9TH CEEQA GALA

Event:

The annual CEEQA Gala is firmly established in the sector calendar as the black-tie gathering of the year for real estate business leaders, and one of Europe’s premium real estate events.

Location:

23-25 INTERNATIONAL HR CONGRES & EXPO Event:

The next edition of this event is under the motto “What does HR play?”. The theme is looking at the strategic role of HR within organizations. Invited guests will present the most interesting examples of the implementation of HR projects, as well as sharing knowledge from their years of experience in the sector.

Location:

Warsaw

Web:

kongreskadry.pl

Ammono ....................12 Goyello........................15 Real Estate Holding ..16 AOS ............................15 Home Broker ............16 Polkomtel ....................6 Apricot IMS Health ................12 Capital Group ............15 Inglot ..........................14 Polpharma ................12 Asseco Poland ..........12 Jones Atlas Estates ..............16 Lang LaSalle ........15, 17

PwC ............................15 PZL Mielec ................14

Bayer ..........................15 JSW ..............................5 BG Group......................5 KGHM ..........................6

PZU ..............................5

Budimex ....................15 Kulczyk Investments....5 Redan ..........................7 Bumar ........................11 Libra Project ..............15 Rovio ..........................23 BZ WBK ....................5, 6 LPP ..............................7 SII................................15 CD Projekt..................12 Master Chimpharm ................12 Management Group ..15 Sikorsky Aircraft ........14 Citigroup ......................6 Meritum Bank ............15 Skanska Residential Colliers ......................17 MultiBank ..................16 Development Poland 16 Comarch ....................12 Nasza Klasa ................4 Soraya ........................14 DAX Cosmetics ..........14 Noodlecake Studios ..23 Deutsche Bank ..........16 Nordea Bank ..............16 The Hackett Group ......3 Disney Mobile ............23 Oceanic ......................14 TopGaN ......................12 Dom Development ....16 Open Finance ............16

TPS ............................15

Dr. Irena Eris ..............14 Ophir Energy ................5 Enea ............................5 Peter

Volkswagen ................13

Energa ..........................5 Nielsen & Partners ....6 Wittchen ......................7 Energa Group ............15 PGE ..........................5, 6 WSE ..........................5, 6 Esotiq & Henderson ....7 PKN Orlen ....................6 X-Trade Brokers ........20 Eva Minge Design ........7 PKO BP ............5, 15, 16 FSO ............................13 Polbank ......................16 ZEW Niedzica ..............5 GFKM..........................15 Polfa Warszawa ........12 Ziaja ............................14

NEWS

APRIL 2-8, 2012

www.wbj.pl

CIA ‘black site’ allegations

Former Polish intelligence chief charged in CIA ‘torture’ case The issue of alleged CIA “black sites” in Poland has resurfaced

‘Black sites’ The charges relate to an investigation, launched in 2008, into

A democratic country

EAST NEWS

Zbigniew Siemiàtkowski, head of Poland’s intelligence service (the AW) from 2002 to 2004, has been charged by the Polish Prosecutor’s Office with breaking international law in connection with an investigation into alleged CIA “black sites.” Some of these secret detention facilities, where CIA suspects in the “global war on terror” were allegedly kept and, in some cases, subjected to torture, were reportedly based in Poland.

Specifically, Mr Siemiàtkowski is being charged with allowing prisoners to be illegally deprived of their liberty and with allowing “physical punishment” to be used against them. He will face the charges in a domestic criminal court.

Mr Siemiàtkowski, however, told television station TVP Info that he had “refused to answer the prosecutor’s questions and will continue to do so at every stage of the proceedings, including in court,” citing issues of national security.

former PM told journalists.

Mr Miller has denied that he had any knowledge of the CIA detaining and torturing prisoners in Poland.

Zbigniew Siemiàtkowski headed Poland’s intelligence service between 2002 and 2004 whether Poland hosted CIA detention centers for suspected terrorists during the early years of the “war on terror.” A military base in Stare Kiejkuty, northeastern Poland, was allegedly used as one of the socalled CIA “black sites” between December 2002 and September 2003.

In January this year, Polish prosecutors granted terrorism

suspect Abu Zubaydah “victim status” in an investigation after he claimed to be a victim of secret detention and torture while in Poland.

There are suggestions that the current leader of the Democratic Left Alliance, Leszek Miller, who was prime minister during the period when the black sites were allegedly in use, could be charged in connection

with the sites before Poland’s State Tribunal. However, this had not been confirmed as WBJ went to press.

Mr Miller reacted to the speculation by saying that those responsible for the “leaks” of information were “committing treason.” “This will not end until the prosecutor running to the media [with information] is punished,” the

Meanwhile, Prime Minister Donald Tusk reacted by saying that “there is no doubt Poland is a democratic country. This is a painful but very clear proof that no politician, even if hand in hand with the biggest superpower in the world, can do something that will never see the light of the day.”

“This is not the 19th century and not some Bantu state.

Rulers have to know how to take care of the dignity of the Polish state and so do only what is in accordance with their conscience and the law,” he added.

However, he also said that if he had been the prosecutor, he “would not have formulated the charges,” and that Poland was “in a sense the political victim of the indiscretion of some people in the US administration several years ago.”

Those investigating the case “must rise to the highest standards of concern for state interest” and show the “utmost discretion,” he added.

Remi Adekoya

Pension reform

Ruling coalition comes to an agreement After weeks of political The changes wrangling and In a November 2011 address to moments of nearparliament, the crisis, the leaders of prime minister PO and PSL have announced that he announced a deal planned to in-

COURTESY OF THE EUROPEAN COMMISSION

Prime Minister Donald Tusk and Deputy PM Waldemar Pawlak have agreed to increase the retirement age in Poland to 67 for both men and women, with the possibility of earlier retirement and a partial pension under certain conditions.

The agreement was announced at a press conference last Thursday, after weeks of proposals and counter-proposals between coalition partners the Polish People’s Party (PSL) and Civic Platform (PO) had fueled speculation that PO leader Donald Tusk might be forced to seek support for his flagship reform elsewhere. Many political observers wondered whether the government could survive the internal discord.

because you have financed your earlier retirement from your own accumulated pension capital,” Mr Tusk said last Thurscrease the retireday at a joint ment age in Popress conference land to 67 for both with Mr Pawlak. sexes. Under curThe prime rent law, Polish minister has said men can retire at he will “suggest 65 and women at party discipline” 60. when the vote is PSL, the junior held to pass the coalition partner, reform bill. The reacted skeptically PO-PSL coalito the idea, later tion currently pushing for the has 234 MPs, possibility of earli- PM Tusk (right) and Deputy PM Pawlak have taken a long time to reach an giving it a majorer retirement for agreement ity of just three selected groups.

In the end, the coalition gov- women at 62. However, this tial pension will be financed MPs in the Sejm, Poland’s ernment agreed to fix the will only be applicable to using 50 percent of the capi- lower house of parliament. It retirement age at 67, to be men who have worked for 40 tal a person has accumulated is possible, however, that the introduced by the year 2020 years and to women who through the course of his or third-largest party in parliament, Palikot’s Movement, for men and by 2040 for have worked for 35 years. her working life.

“If you decide to take the could support the move, Both men and women will women.

They also agreed that in have to have paid into the partial pension earlier then since it had suggested earlier certain cases men will be pension pot while they that means you have decided that it might be willing to.

Remi Adekoya able to retire at 65 and worked. In that case, the par- on a lower pension after 67

3

Mobile users to pay less The European Commission, MEPs and EU governments have agreed to reform mobile roaming fees, paving the way for users of mobile devices to pay less for calls, texts and mobile internet services when traveling abroad.

According to the deal the cost of a one-minute call would be capped at €0.29 as of July 2012 and €0.19 as of July 2014, down from €0.35 under current legislation. Meanwhile, an SMS would cost no more than €0.09 as of July 2012 and €0.06 as of 2014, down from €0.11 under the current legislation.

Polish business centers shine According to international consultancy firm The Hackett Group, Poland is the world’s third-most attractive country for finance, accounting and consulting-service centers, reported Rzeczpospolita. Poland was the number-oneranked country in Europe, with only economic powerhouses China and India rated better globally.

Banks earned record profits in 2011 According to calculations by the Financial Supervision Authority, Polish banks ended 2011 with a combined net profit of z∏.15.7 billion, a jump of more than a third year-on-year, reported Bankier. “The results last year were the best in the history of the Polish banking sector,” Krzysztof Pietraszkiewicz, president of the Polish Bank Association, was quoted as saying by the Newseria.pl news agency.

New PPP road project Nine companies have expressed an interest in building a nine-kilometer stretch of highway in southern Poland as part of a public-private partnership, reported Puls Biznesu. The segment would connect Tucznawa with the neighboring Euroterminal logistics terminal in S∏awków and an airport in Pyrzowice. ●

NEWS

Banks targeting micro-firms Small businesses employing fewer than 10 workers, of which there were an estimated 1.4 million in Poland in 2010, are borrowing increasing amounts from banks. In 2011, loans to small businesses amounted to zl.44.2 billion. By 2015, that number is expected to increase to zl.54.6 billion, reported Puls Biznesu.

Nasza Klasa profits rise Though Facebook has overtaken Polish social network Nasza Klasa in terms of number of users in Poland, Nasza Klasa is still enjoying rising earnings, Rzeczpospolita reported. Last year, Nasza Klasa’s revenues increased by 15% to z∏.75.3 million, and its net profit rose by 4% to z∏.17.3 million. Some 47% of the website’s revenue comes from games and other paid products. Nasza Klasa has also introduced new sales channels, and a tool for providing a market analysis of the portal’s members. ●

APRIL 2-8, 2012

Polls

Support slumps for ruling PO-PSL coalition The government has been trying to enact some unpopular reforms in recent months, leading to a drop in popularity Sixty-seven percent of Poles now disapprove of the way the Civic Platform-Polish People’s Party (PO-PSL) coalition is ruling Poland, indicates a survey conducted by pollster CBOS. Only 25 percent think it is doing a good job, according to the poll, which was conducted in late March.

Moreover, 45 percent describe themselves as opponents of Prime Minister Donald Tusk’s government while only 31 percent say they support it. This is the lowest level of support for the PO-PSL coalition since it started ruling in 2007.

Mr Tusk himself is not faring much better, with 57 percent of surveyed Poles saying they are unhappy that he is heading the government. Only 33 percent say they are happy with that fact.

Respondents to the survey are also critical of the government’s economic policies, with

only 25 percent saying the coalition’s plans will improve the country’s economic situation and 65 percent saying they will not.

The ruling coalition, and in particular its senior partner, PO, and leader, Donald Tusk, have seen their popularity plummet in recent months, partly due to an unpopular reform program.

“PO had problems at the beginning of the year due to the Anti-Counterfeiting Trade Agreement protests and the prescription-drug reform and right now ... problems are con-

tinuing, with the strong opposition to raising the retirement age to 67 for both men and women,” said Sergiusz Trzeciak, a political analyst at Collegium Civitas.

“It is likely that PO’s support will drop even lower, to the level of 20-25 percent in the next few weeks. That will cause many PO MPs, who feel frustrated at their marginalization in their party, to start to challenge the ruling party’s leadership, which would further weaken Mr Tusk and his party,” he added.

Remi Adekoya

Only 33 percent of Poles are happy with PM Tusk, a survey indicates

New conservative party in Poland Zbigniew Ziobro, the former deputy head of the Law and Justice (PiS) party and onetime justice minister, announced the official launch of his new political party, Zbigniew Ziobro’s Solidarity Poland (Solidarna Polska Zbigniewa Ziobro), in late March.

“Today we start our march to the victory of the Polish right. We want to represent ordinary people and be a party that is credible, that Zbigniew Ziobro is the leader of keeps its word,” said Mr Solidarity Poland Ziobro at the inaugural congress, adding that his party remove the ruling Civic Platwould focus on achieving form party and its “terrible government.” “social justice” in Poland.

Solidarity Poland currently Mr Ziobro, who was expelled from PiS in Novem- has a parliamentary caucus ber 2011, reminded listeners which boasts 20 MPs, largely that he was the campaign head ex-PiS members. The new of PiS co-founder Lech party is expected to position Kaczyƒski’s successful presi- itself to the right of PiS, which dential campaign in 2005. He is already considered very added that Ludwik Dorn, who conservative in Poland.

A Homo-Homini opinion was in charge of PiS’s one and only parliamentary victory to poll taken after Solidarity date, also in 2005, is part of Poland’s congress had them with 6 percent support, which Solidarity Poland today.

“They didn’t believe in our is above the threshold needed victory then,” Mr Ziobro said, to get into parliament.

RA adding that his party aims to COURTESY OF THE EUROPEAN PARLIAMENT

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BUSINESS

APRIL 2-8, 2012

www.wbj.pl

Gas

Privatization

Kulczyk to tap massive gas reserves in Africa?

Treasury plans sale of energy stakes on WSE

Ophir has discovered major recoverable gas reserves off the coast of Tanzania

The Polish billionaire holds a stake in Ophir, which discovered gas reserves in Tanzania that are potentially much larger than Poland’s shale gas resources Ophir, an oil and gas exploration company in which Polish billionaire Jan Kulczyk holds a 10.2 percent stake, said last week that results from its Jodari-1 exploration well off the coast of Tanzania indicated gross recoverable gas of around 3.4 trillion cubic feet.

The findings from the well, which Ophir owns jointly with BG Group, coupled with results from all four wells the two firms have drilled in Tanzania, brings the total amount of recoverable gas to around 7 tcf (over 2 trillion cubic meters).

That’s more than the total amount of shale gas the Polish Geological Institute (PIG) expects to lie beneath Poland.

In a recently-published

report, PIG said that Poland’s shale gas reserves amount to between 0.35 trillion and 0.77 trillion cubic meters. The lower limit is, however, about 10 times less than the 5.3 tcm estimated by the US Energy Information Administration in April 2011.

Through his investment vehicle Kulczyk Investments, Jan Kulczyk purchased a 13 percent stake in Ophir in 2006 for around z∏.400 million, Puls Biznesu wrote. Company spokesperson Justyna Kobos declined to confirm the value of the original investment, but said Mr Kulczyk now holds a 10.2 percent stake.

Based on Ophir’s stock price, which leaped on last

week’s news from Tanzania, the Polish tycoon’s stake was worth around z∏.1.2 billion as WBJ went to press.

And the future looks set to get even brighter for the company.

“The result from Jodari-1, at 3.4 tcf recoverable, has materially exceeded pre-drill estimates and represents the largest discovery in Ophir’s history,” Nick Cooper, CEO of Ophir Energy, said in a statement. The discovery is “a major step closer to the second LNG train,” he said in reference to the possibility that the company could build a twotrain liquefied natural gas plant which would export to global markets.

Aside from his stake in Ophir, Jan Kulczyk also owns a stake in Oil Mining License 42, a large oil concession in Nigeria.

Gareth Price

SHUTTERSTOCK

Analysts say the government could earn more by selling to strategic investors Stakes in a total of 300 stateowned companies stand to be sold off under the Polish government’s privatization plan for 2012-2013. The plan also envisions the flotation of stakes in a number of power companies, a strategy which analysts say could lead to the Treasury earning less than if it sold to strategic investors.

The Treasury, which oversees state assets, hopes to sell stakes in utilities Energa, Enea and hydropower firm ZEW Niedzica through the Warsaw Stock Exchange, it said in its 2012-13 privatization plan, released last week. It also plans to sell shares in the country’s

largest utility, PGE. “Selling these companies through the WSE is not a strategy that maximizes the potential earnings they could bring the state,” said Pawe∏ Puchalski, an analyst at DM BZ WBK. Mr Puchalski suggested that strategic investors would pay more for the companies than buyers on the bourse.

While the Treasury, which hopes to make around z∏.15 billion from the asset-sale program, said it would prefer to sell the energy companies via the stock exchange, it has not ruled out the possibility of selling to strategic investors.

“In my opinion, at least one of the energy companies is likely to be sold to a strategic investor,” said Mr Puchalski.

Some analysts have said the plan could lead to an oversup-

5

ply of energy companies on the bourse, especially given the current, unstable investment environment.

“The plan is for the next two years, so the Treasury will spread the sale of energy assets out into next year – I would definitely not expect z∏.15 billion within 2012’s IPOs / SPOs within the utility segment,” said Mr Puchalski.

The Treasury also hopes to sell stakes in coal-miner JSW, bank PKO BP and insurer PZU. Final decisions will be made based on prevailing market conditions. The IPO of Bumar, a producer of military equipment, is also planned for next year. However, this might be difficult, since the firm is heavily unionized and is undergoing a complicated restructuring process.

Gareth Price

Government set to reveal plans for shale gas tax Poland will present the first draft of a new tax on shale gas production in April, Deputy Environment Minister Piotr Wozniak announced last week.

Changes to the law governing hydrocarbon extraction are “necessary to improve conditions for investment and to reduce the risk borne by the state associated with long-term mining activities on a significant scale in the country,” Mr Wozniak said in a statement. The levy “will not be high, because it takes into account the capital intensive nature and investment risks of the extraction of hydro-

carbons,” he added.

Mr Wosniak also said revenues from the future tax will be payable to the Treasury and to authorities of areas where production takes place.

Deputy Finance Minister Maciej Grabowski told the Polish Press Agency that the new tax will not come into effect until industrial-scale production of shale gas begins. The government hopes to launch annual shale gas production of 0.5 to 1 billion cubic meters at the turn of 2014/2015.

Some analysts warn that Polish officials should be espe-

cially careful not to weaken their negotiating position when it comes to potential taxes and royalties on natural resources.

“On the one side the government is talking about spending cuts and raising the retirement age, and at the same time, it quite happily creates a background for losing billions of dollars of potential tax revenue,” said Grzegorz Pytel, an energy expert.

“The government is damaging Polish long-term financial interest enormously,” he added.

Alice Trudelle

BUSINESS

www.wbj.pl

The combined profit of Warsaw Stock Exchange-listed companies from 12 key sectors amounted to a record z∏.12.9 billion in Q4 2011. A year earlier, that figure was z∏.3.7 billion lower, reported Parkiet. However, these impressive results were influenced to a considerable degree by one-off events, such as the sale of Polkomtel shares by KGHM, PGE and PKN Orlen, for some z∏.6 billion.

Gold market booming The gold market for individual investors in Poland saw major growth last year, reported Dziennik Gazeta Prawna.

In 2011, 30,000-40,000 investors bought three metric tons of gold billets and coins. This figure was a 100% higher than a year earlier, according to experts from the Mint of Wroc∏aw. In 2012, sales are expected to grow by 87% to around 5.6 metric tons. “More people recognize that [gold] prices are rising steadily, regardless of what happens in the real economy.” said the mint’s president, Mariusz Malec ●

Copper

Economic growth

KGHM forecasts lower net profit for 2012

OECD praises Poland but sees GDP slowdown

The company’s 2012 profit predictions are much lower than the z∏.4.3 billion forecast by most analysts The supervisory board of Polish copper miner KGHM announced last week that the company’s net profit for this year is expected to amount to z∏.3.8 billion. This is compared to a net profit of z∏.11.08 billion in 2011, when the company sold its 24 percent stake in telecom Polkomtel for a pretax profit of z∏.2.31 billion.

Analysts had expected KGHM’s net profit to amount to z∏.4.3 billion for this year, with only two of 11 financial institutions polled by Polish daily Parkiet predicting a net profit of below z∏.4 billion.

KGHM expects to make a z∏.3.8 billion profit in 2012 According to KGHM’s management board, profits will be significantly lower than last year due to a new tax on copper and silver extraction which comes into force in May, and also due to an unfavorable macroeconomic situation. In addition, the firm also

Back to earth KGHM’s annual net profit 2007-2012 (z∏. billions) 12

11.08

10 *forecast 8 6 4.6 3.8 4

3.8* 2.8

Source: KGHM

Record WSE profit in Q4

APRIL 2-8, 2012

COURTESY OF KGHM

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2012

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

Special economic zones expanding Special economic zones (SEZs) are still highly popular among investors. To meet Polish SEZs’ recent need for land, the Council of Ministers adopted decrees concerning SEZs. Land located in Koszalin, Wa∏cz, S∏upsk and Ustka has been included in the S∏upsk SEZ, whereas the Warmia and Mazury SEZ has been expanded to include land in Olsztyn, Elblàg and Nidzica. The Ministry of Economy estimates that the inclusion of these areas will result in the creation of around 1,600 new workplaces in companies operating in the zones and about 400 workplaces in the zones’ neighboring areas.

Amendment to a tax treaty with Cyprus On March 22, 2012, representatives of Poland and Cyprus signed a protocol amending the Polish-Cypriot Double Taxation Avoidance Agreement.

The most important change to the agreement is the removal of the so-called “tax sparing” clause. This clause enabled

investors to benefit from a tax advantage related to tax that had not actually been paid in the country where the income in question was earned.

Since this method has led to the abuse of law, the Ministry of Finance has been committed to removing the tax sparing clause from the treaty signed by Poland.

Moreover, the protocol introduces changes governing how the incomes of management board members are taxed.

Under the change, incomes of management board members will only be taxed in the country of residence of the member in question.

New Renewable Energy Department at Economy Ministry Following a motion put forward by Deputy Prime Minister Waldemar Pawlak, a Renewable Energy Department has been created in the Ministry of Economy. Thus, renewable energy has become an independent sector when it comes to government administration. The first task of the new department is to continue working on the draft law on renewable energy sources. ●

does not expect any major one-off financial gains, such as the one it got from the sale of Polkomtel in 2011.

“The substantial decrease in profit versus 2011 is mainly due to: recognition in the result for 2011 of the sales of telecom assets, a change in the valuation of exchange differences, effects of the introduction of the minerals extraction tax and the deterioration of macroeconomic conditions,” KGHM wrote in a statement.

The company did confirm, however, that it would be monitoring its numbers and would publish an updated forecast if the actual figures deviate significantly from those it has so far predicted.

David Ingham

The Polish economy was the fastestgrowing among the 34-country group throughout the crisis Poland’s economy has been the best performer within the Organisation for Economic Cooperation and Development (OECD) during the global economic crisis, according to the OECD’s “Economic Survey of Poland 2012,” unveiled in Warsaw last week.

Since 2007, Polish cumulative real GDP growth was higher than that of all other countries in the 34-country OECD. Moreover, Poland’s economy made impressive steps toward reducing the income gap with its European Union partners, the report noted.

“Poland’s strong economic performance in recent years is proof that appropriate macroeconomic policy combined with prudent regulation pays off,” OECD secretary general Angel Gurría said while presenting the report in Warsaw with Deputy Prime Minister Waldemar Pawlak.

Mr Gurría added that it was now time for Poland to “promote innovative and green sources of growth and implement structural and social

February unemployment at five-year high Retail sales growth is still strong, but the situation on the labor market could soon change that Registered unemployment in Poland crept up to 13.5 percent in February, a rise of 0.3 percentage points over the previous month, according to Central Statistical Office data.

The reading was the highest since 2007, with more than 2.16 million Poles registering as jobless.

Despite the weakening labor market, retail sales came in higher than expected, growing 13.7 percent y/y in February, slightly less than in January (14.3 percent y/y). The market consensus had predicted growth of around 9.8 percent.

Factors that contributed to

Another peak Unemployment rate in Poland, February 2011 to February 2012 (%)

14.0 13.4 12.8 12.2 11.6 11.0

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

reforms,” so the country continues to catch-up with the rest of Europe and consolidates financial markets’ confidence in its economy.

The picture presented by the OECD for Poland looked distinctly less bright for 2012, however.

With Poland’s planned fiscal retrenchment and the European economy continuing to grind to a halt, real GDP growth is projected to slow from 4.3 percent in 2011 to 2.75-3 percent in 2012.

Moreover, in order to ensure Poland achieves a similar level of GDP growth in 2013, the Polish government will need to make further reforms, including reforming the social security system for farmers and improving the public healthcare system and public-sector efficiency over the long term.

And despite the positive assessment of Poland’s ability to weather what the financial crisis has thrown at it so far, the country is not immune from the risk of contagion from its European trading partners, warned Mr Gurría.

Quoting Polish writer Stanis∏aw Jerzy Lec, he said that Polish success left no room for complacency because, “On every summit you are on the brink of an abyss.”

DI

Macroeconomics

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'11 Se p.

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

'11 Jan . '1 2 Feb . '1 2

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Source: Central Statistical Office

the strong result included growth in sales at general stores, including supermarkets, and acceleration of fuel sales, according to a Citigroup Global Markets report.

Nevertheless, high unemployment is expected to take its toll on consumer spending in the next few months.

“The situation on the labor market in coming months will not support an increase in households’ spending,” Bank Zachodni WBK analysts wrote in a research note. Citigroup, meanwhile, expects that further weakening of the labor market will negatively affect retail sales growth and private consumption in the next few quarters.

However, in the early stages of the summer retail sales could rebound, albeit temporarily.

“We may see still relatively high growth in retail sales, especially June, which will be supported by the Euro 2012 [soccer] championships,” Citigroup wrote.

Gareth Price

FASHION INDUSTRY IN FOCUS

APRIL 2-8, 2012

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Fashion and business

Esotiq & Henderson to take over Eva Minge Design Esotiq & Henderson, a Polish lingerie company listed on the Warsaw Stock Exchange’s alternative market, NewConnect, is taking over a 51 percent stake in Eva Minge Design, a fashion

COURTESY OF MYSPACE.COM/EVAMINGE

The companies plan to build a fashion house in Poland and launch salons offering designer clothing, furniture and jewelry

Designer Ewa Minge aims to create and export a new group of luxury goods

house owned by Polish designer Ewa Minge. Together, they will expand the range of clothing collections designed by Ms Minge, and also promote a number of other brands, operating in sectors including clothing and interior furnishing.

“The aim of the project is to build a house of fashion as well as salons which will offer clothes, home furnishings and jewelry, designed mainly

by Ewa Minge,” Adam Skrzypek, chairman of Esotiq & Henderson, said in a statement.

He added that, independently, Esotiq & Henderson will develop a chain of its own salons.

Eva Minge Design is planning to build 15 salons offering upmarket women’s clothing collections and 15 salons dealing with interior furnishings. It also plans to enter the jewelry segment.

“With our new partners, who are successfully developing the Esotiq & Henderson company … we aim to build a group of luxury goods without restricting ourselves only to the fashion market,” Ewa Minge told WBJ. The company will also expand globally by promot-

ing other fashion brands.

“Eva Minge Design house of fashion is planning to build a portfolio of strong brands, which will use the house of fashion’s system of distribution and production, as well as its financial and accounting background so that they can develop on a larger, European scale and ultimately worldwide,” the company wrote in a statement.

Polish market tough on fashion “The Polish market is incredibly chaotic, and in the fashion sector, it is very unprepared for competition with world fashion

“Despite Poles’ low purchasing power, demand for luxury products is growing in Poland” leaders … Even if the market reacts spontaneously to newly emerging products, manufacturers are usually not consistent in building brands which will bring long-term clients,” said Ms Minge.

The designer added that the company is planning to design products that appeal to a wide range of customers.

Ultimately, the aim of the project is to create a multi-generational brand.

Ms Minge said that although Poles’ purchasing power is much lower than that of customers in Western countries, demand for luxury products is growing in Poland.

“We do have an expanding group of buyers who are willing to spend a little extra money on buying a ... topshelf product,” Ms Minge added.

Izabela Depczyk

Polish clothiers’ international success Polish clothiers are not only expanding into the higher-end segment of the market, but are also increasingly looking for opportunities abroad.

According to Katarzyna Twardzik, retail analyst at market research firm PMR, Polish LPP, which owns brands such as Reserved, Mohito, Cropp and House, has the strongest presence abroad. LPP’s clothes are sold in Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Romania, Russia and Ukraine. Overall, there are 102 Reserved stores, 71 Cropp stores and 36 House stores in locations outside of Poland.

Redan, a major Polish clothier which owns brands including Top Secret, Top Secret & Friends and Troll, is another Polish firm that has established a presence in Eastern Europe, mainly in Ukraine and Russia.

A classic example of Polish success in the clothing sector is Wittchen, a luxury leather goods maker established in 1990. The firm’s exports are concentrated in Eastern Europe, with a total of 36 Wittchen shops outside of Poland, mainly in Belarus, the Czech Republic, Lithuania, Russia and Ukraine.

Remi Adekoya

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INTERVIEW

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Social mood

Kaczyƒski: Smolensk not an accident

German president visits Poland Joachim Gauck visited Poland last week for his first foreign trip as president of Germany. The fact that Mr Gauck chose Poland shows the strong alliance between the two nations, said Jaromir Soko∏owski, a minister in the Chancellery of the Polish President, TVN24 reported. Mr Gauck met with Polish President Bronis∏aw Komorowski last Monday, and with PM Donald Tusk the following day.

Komorowski most trusted A recent survey by CBOS indicates that President Bronis∏aw Komorowski, with a 68% trust rating, is the most trusted politician in Poland, reported Dziennik Gazeta Prawna. PM Donald Tusk’s trust rating stood at 36%. ●

An anxious society

COURTESY OF IRENEUSZ KRZEMI¡SKI

Jaros∏aw Kaczyƒski, the Law and Justice party leader and twin brother of former President Lech Kaczyƒski, has appealed to the EU to investigate the April 10, 2010 Smolensk airplane tragedy. He has suggested that foul play helped cause the incident, which claimed the lives of 96 people, including that of his twin. He even implied that the Polish government could have been involved in helping to kill his brother. “If there were explosions, if this catastrophe is starting to look more and more like an assassination, then we have a new era in politics,” he said.

APRIL 2-8, 2012

Poles feel that the state does not act for the public good, says Mr Krzemiƒski

Ireneusz Krzemiƒski, professor of sociology at the University of Warsaw, talks with WBJ about the social mood in Poland, communication issues between government and society and the difficulty Poles have in identifying with the state Ewa Boniecka: How do you assess the present social mood in Poland?

Ireneusz Krzemiƒski: I would describe it as a mood of social anxiety. The symptoms of such a mood were already exposed by the findings of pollster CBOS at the end of last year, and we have entered this year with even stronger feelings of social uneasiness and anxiety.

This led to the strengthening of the movement which protested against the government’s medical prescriptions list [for reimbursement] and the AntiCounterfeiting Trade Agreement (ACTA). I have no doubt that the mood was also fueled by the bad start made by Prime Minister Donald Tusk’s second government. The government

did not recognize the power of the social protests and had forgotten about the necessity of building a strategy for communicating with the people, especially when they are protesting.

This shows a general lack of preparation and it resulted in a situation where the mood of anger and anxiety among people was strongly activated.

What worries me even more, not only as a scholar but as a citizen, is the general mistrust of Poles towards the state, and of course towards the government, the prime minister and politics. It is very disturbing, looking beyond the current mood of frustration, because it concerns a fundamental value – the identification with one’s own state, with

one’s own country. What is surprising is that two years ago, all research showed that social satisfaction and people’s assessment of the state was good, despite the financial crisis that surrounded us. And now, suddenly, that positive identification with the state and the pride in the results of building an independent, democratic Poland appear to be much weaker.

What are the reasons for that social anxiety and mistrust towards the state?

There are a few reasons, and not all of them simple. I would point to two things. First is the disillusionment towards Donald Tusk’s government due to its bad start to its second term.

Many people expected a show of energy and moves towards efficiently tackling problems in their lives, and became angry at the aloofness of the government’s ministers towards them.

The second and more pro-

found reason for Poles’ mistrust towards the state is the feeling that state institutions are functioning badly. People feel that the administration’s organs, the state’s various functionaries and clerks are not acting for the public good and do not serve citizens effectively, and, instead, act against them.

Poles have named hundreds of examples of that: the obligation to fill in dozens of papers [in order] to be admitted by doctors; bureaucratic barriers everywhere, the arrogance and nonchalance of bureaucrats, ineffective railway services, and so on. It is not an entirely new perception; it has been present for years, but suddenly people have had enough of it.

They do not want to be treated like unwanted inquirers … or to live in an atmosphere in which they feel that “this state is not ours.” I am presenting an exaggerated picture here, but I believe that the

common perception is that there has been an accumulation of many problems that started during the terms of various governments in the past.

The consequences of this neglect are now starting to appear.

Of course, blaming Donald Tusk’s government for all these problems, which the opposition is doing, is not logical or right. But the government, by ignoring the social mood and showing complacency, is not helping to restore trust in ruling politicians and the state.

In my opinion, what is lacking, but which is badly needed, is an open and matter-of-fact discussion with society about all our serious problems. In other words, the government, the prime minister and ministers should talk much more with people and inform them much earlier and with greater clarity about the decisions they plan to make.

Do you think that this mood of social anxiety can be overcome?

I think that there are some paradoxes in the Polish situation, because in comparison to some other members of the EU our economy is in quite good shape and, according to statistics, the situation of the poorer groups of society has improved in the last four years.

And in the previous term, the government reformed the part of the retirement system that deals with private pension funds (OFEs), and is now considering equaling the retirement age for men and women and prolonging it gradually.

Yet the government’s false start to the beginning of the present term has put it in an extremely difficult position. So now, when putting forward proposals for serious reform, it first has to restore people’s confidence. You cannot carry out reforms without develop-

INTERVIEW

APRIL 2-8, 2012

ing a strong, informative campaign. Let me remind you that when Jerzy Buzek’s government introduced the first reforms to the retirement system, its communication was excellent. So there is a precedent for implementing tough reforms [with good communication]. The problem is that while there are strong arguments for increasing the working age, these need to be associated with an effective campaign that convinces people that such a move is necessary.

And along with this, concrete efforts to improve the functioning of the social system need to be made, as well as measures to remove parts of the state administration that have failed. This is the only way for the government to regain the political initiative.

Yet the political scene is changing and new political parties are springing up. Do Poles identify themselves with the ideological positions of these parties, or are they disillusioned with the whole political scene?

There are significant groups of society who have strong ideological and political views.

There is no doubt that the [opposition] Law and Justice (PiS) party is based on a very strong nationalist-Catholic ideology. And such a stand is important for people who support that party. … PiS’s ideas concern not current problems but abstract ones, and that shapes the party’s views of the role of the state, which is currently perceived by PiS as being “not ours.”

On the other hand, there are groups of people with liberal views, center-right views, moderate-conservative views, who identify themselves with the ruling Civic Platform’s (PO) modernizing position.

What bothers me is that the debate between the government and PiS still omits some problems that are very important to people. Moreover, it lacks content-based arguments; their political confrontation takes place in a somewhat abstract domain.

First of all come the problems of values, moral standards and how to be a “good patriot,” as well as the Smolensk plane catastrophe … And these debates, conducted on the level they were, have allowed the new, populist Palikot’s Movement to enter parliament, and also contributed to the splitting of PiS. Now, Palikot’s Movement is trying to introduce a new language and new issues to the debate. I think that the presence in the lower house of parliament of Palikot’s Movement could become a very good stimulus for PO politicians to wake up and begin to fight for political support. And they should do so in a concrete way that is understood by Poles, and not allow themselves to be

involved in the senseless “Polish-Polish War,” which is concentrated around the “Smolensk mythology” introduced by PiS. You said once that younger generations of Poles exhibit very little identification with Poland. Do you see this as part of a general disillusionment towards the state, or do young Poles have their own, specific reasons for having such an attitude?

Polling carried out in the 1990s showed that the young generation had a good knowledge of our history, including the history of World War II, as well as a generally positive attitude towards Poland. Now, my students who are obtaining Erasmus scholarships funded by the EU for studies in various European universities define themselves as Poles and, at the same time, as Europeans. Of course this is a natural and pos-

“Poles feel that the state’s organs are not acting for the public good. It is not new, but suddenly people have had enough” itive outcome of Poland’s entry into the EU. But since so many young Poles not only study but also work, at least temporarily, in Western countries, they have started to compare their own conditions and the state of Polish administrative institutions with the situation in other countries. And those observations, drawn from their daily life experiences, have led to a more critical approach towards the functioning of our state and its institutions. Those young people have a realistic assessment of the Polish economic condition and the country’s economic distance from the West, but what makes them angry and frustrated is the malfunctioning of our state’s organs, the arrogant treatment of people by the administration’s officials – they cannot find an excuse for it. On the other hand, we should remember that Poles are critical and easily start protests against the government, but they are not oriented enough toward social activity and cooperation ... to realize their goals.

How much does the gap between Poland’s economic development and that of countries in the West, bother the ruling party and motivate it to speed up the modernization of Poland?

I think Civic Platform’s politicians are well aware of this and they are trying to accelerate our modernization and at the same time fight against the bad stereotypes of Poland held by some abroad. My thesis is that

what Donald Tusk wanted to achieve during our presidency of the EU was to show how much Poland is involved in the European Union’s response to crises, that we really and deeply belong to the Western part of Europe and that Poland is not some kind of remote and strange Eastern country.

In my opinion he succeeded fully and many stereotypes of Poland, still present in some countries, were abolished. The present European crisis demonstrates how much we are concerned with European matters and how much we care for the future of the EU. Yet anti-establishment attitudes and fears about the future are also fueling protests among young people in other EU states …

Yes, and I see in Poland and in some other EU countries, especially among young generations, a tendency for turning towards the left, and at the same time being more disillusioned with capitalism. The neo-liberal economic ideas which worked so well at the end of last century now seem to be questioned and are in some cases being replaced by increased state intervention in the economy.

Yet those feelings and a leaning towards the left in some countries does not mean that there is a wish to undermine the rules of the freemarket economy. … Social anxiety is [now] more profound, because there are no answers for how to deal with the new economic and social situation. There are no new and comprehensive ideas on the horizon. It is a problem for all European societies and for many political parties. At the same time these new signs of social fears and anxiety could lead to a rise of populism and challenges to democratic institutions.

But in Western countries, protesters have not rejected their identification with the state, like some PiS-inspired protesters are doing in Poland, for example ...

Some protests in the West are associated with demands for changes to the political and economic system, while protesters are not questioning the validity of their state. In Poland, the protests against ACTA were spontaneous reactions against a violation of people’s rights and freedoms on the internet, and were not associated with a challenge towards the existing system.

Poles are deeply attached to their country, they value our hard-won democratic system.

What differentiates us from other countries is that there is rooted in our national conscience a distrust of political institutions, which results from our history. That mistrust is making our politics weaker than it could be. ●

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OPINION & ANALYSIS

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APRIL 2-8, 2012

A call for accountability Alice Trudelle

L

ast week, Poland became the first EU country to charge one of its officials over participation in the CIA’s Rendition, Detention and Interrogation program.

Zbigniew Siemiàtkowski, head of Poland’s intelligence service from 2002 to 2004, was charged in connection with his alleged role in helping

“Now is the time for Polish politicians to uphold the highest standards of transparency and accountability” to establish an infamous CIA “black site” in Poland and will have to defend his actions in front of a domestic criminal court.

More charges may come, with indications that Mr Siemiàtkowski’s deputy at the time, Andrzej Derlat-

(approximately 183 times in a single month).

ka, as well as Leszek Miller, former prime minister and current head of the Democratic Left Alliance party, might also face charges.

According to several reports, secret detention facilities were set up in several European countries in the early 2000s, as part of the US-led “global war on terror” following the 9/11 terrorist attacks. A European Parliament report in 2007 said the CIA carried out over 1,000 rendition flights to Europe using airports in 14 member states. In several EU countries, including Lithuania, Poland and Romania, CIA suspects were allegedly kept and, in some cases, subjected to torture.

In a 2004 “Special Review” of black sites undertaken by the CIA Inspector General, detailed information was given on operations at the Polish detention facility, including the repetitive use of waterboarding on alleged 9/11 conspirator Khalid Sheik Mohammed

Constitutional violation The charges brought against Mr Siemiàtkowski last week are part of an investigation launched in 2008 by the Polish government. This attempt to look into the country’s potential involvement in a program that could reveal serious violations of the Polish Constitution and international human rights treaties, is more than has been done by several other countries allegedly involved in the same program.

But human rights organizations have voiced concerns about the effectiveness of the investigation, arguing that political pressure has likely played a role in the sluggishness of the Polish investigation. The absolute refusal of both Mr Miller and Mr Siemiàtkowski to cooperate, invoking state security as their rationale, indicates that there is like-

ly some truth in these accusations.

Another important roadblock is the fact that the United States has refused to provide legal assistance in the case, on the grounds of national security and state interest.

Nevertheless, the charges brought last week, together with comments from the Polish prime minister, seem to indicate that the Polish government might at last be willing to truly support the investigation. “There is no doubt Poland is a democratic country. This is a painful but very clear proof that no politician, even if hand in hand with the biggest superpower in the world, can do something that will never see the light of the day,” PM Donald Tusk said last week.

But the PM also said that if he had been the prosecutor, he “would not have formulated the charges,” and that Poland was “in a sense the political victim of the indiscretion of some people in the US administra-

tion several years ago.”

Polish politicians should know that regardless of their own attitudes, the affair will not be left to rest easily. The European Parliament, citing new information since its 2007 investigation, is preparing a follow-up report. And insiders might blow the whistle at any moment on what has been described as a “global spider’s web.”

Now is the time for Polish politicians to uphold the highest standards of transparency and accountability, and help its courts determine the truth behind the very serious allegations that torture might have been conducted on Polish territory.

Anything short of this would be a potential blow to the democratic principles that all governments in post-communist Poland have been elected to preserve. ● Alice Trudelle is Warsaw Business Journal ’s co-managing editor.

The geopolitics of Poland’s evolving relationships STRATFOR

At

the end of March, the foreign ministers of Germany, Russia and Poland met in Berlin. It was the second annual meeting, part of a framework in which the three countries decided to meet every year to assess their tripartite relationship. Given that many important European actions must wait until the completion of the French elections in May, nothing substantive was expected to come from the meeting itself. But the fact that these three nations have made it a point to meet regularly is interesting and worth considering.

That consideration begins with Poland, historically caught between Germany and Russia, and at times swallowed by one of them. For Poland, these two countries have been an existential threat throughout its history. Poland has three strategic options: one is to find a powerful and capable outside force prepared to guarantee its existence. The second is to try to reach some accommodation with at least one of these countries in order to deflect the other, while making sure that its defender does not become Poland’s occupier. The third is to try to create a military force that can deter Russia and Germany.

Changing times Historically, none of these strategies have worked particularly well for Poland. But membership in the European Union, as well as in NATO, allowed the country to undertake a new strategy. For Poland, as for other countries, having post-war Germany contained in these multinational entities has eliminated the German threat. At the same time, the end of the Cold War meant that Russia was no longer asserting its power over Poland and, in fact, had lost the ability to do so. In response, Poland developed a strategy that strengthens its relationship with the rest of Europe, allies itself with Germany and immunizes itself against Russia – both because of Europe’s strategic value and due to the fact that Russia no longer has the power to threaten Poland.

But Poland’s current problem is that Europe is changing. The structural integrity of the European Union is under intense pressure from the financial crisis. Its future is unclear and the European Union’s utility as an anchor for Poland is therefore less certain. More important is the fact that Germany’s place

in the European Union has also become uncertain. The Greek crisis revealed a dual problem for Germany: the first is Germany’s dependence on a free trade zone for at least part of its exports. The second is that the free trade zone might not be financially able to absorb those exports. In addition, countries like Greece might become a burden to Germany.

Germany is not making any dramatic shifts in its relationships, but it is searching for alternatives. The most important is Russia, which supplies energy to Germany. Russia also needs German technology and can use German entrepreneurial energy. Germany, with a declining population and a growing aversion to immigration, is looking for locations with low labor costs for factories. Russia’s population is also declining, but it still has surplus labor that is unemployed or, more often, underemployed. Theirs is not a potential relationship but an existing and intensifying one. Germany’s ties with Russia may not replace the German bond with the European Union, but a cornerstone relationship could develop between Moscow and Berlin.

Missile shield Today, Russia is a strong regional power with a particular issue with the United States – the Ballistic Missile Defense (BMD) deployment in Europe – which Russia considers a threat to its national interest. The Russians are threatening to respond to this deployment with one of their own in Kaliningrad, the soon-to-beactive S-400 strategic air defense system. Russia has also threatened to deploy the Iskander mobile shortrange ballistic missile system.

The BMD system – which is slated to host US BMD interceptors in 2018 – is as much symbolic as it is defensive for Poland. It does not guarantee the country’s security, but it is an indicator of US interest in Poland’s security. Poland is uncertain of US commitments, and the US is equally unsure of what it intends. But the BMD system provides Poland a glimmer of an alternative to being sandwiched between the growing collaborative interests of Russia and Germany. The BMD issue will be on the table at a NATO summit scheduled in Chicago in May, and it has some significance in the foreign affairs equation.

The Polish, German and Russian

FM meeting therefore is more than simply another diplomatic get together. Conditions might be changing in Europe in a manner that would change relations between Russia and Germany. Any shift in that equation increases Polish insecurity or at least makes it necessary for Poland to find an independent place at the German and Russian table – something that is never easy for Poland. That introduces the question of a traditional relationship with an outside power, namely the United States, even though this strategy hasn’t worked well for Poland in the past.

Poland’s official position is that it has no problems with Germany or Russia – or with the evolving relationship that is taking place between them. It is not clear whether this is the reality or the hope of Poland.

Still, when the foreign ministers of these three countries meet, it is useful to remember that while relations are sometimes friendly, they are never casual. ● “The geopolitics of Poland’s evolving relationships” is reprinted with permission of STRATFOR STRATFOR.com

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

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Polish firms are exporting technology “Made in Poland”

The automotive industry keeps its sights on Europe’s troubled markets

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MADE IN POLAND 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 p re v i e w o f i t s a n n u a l p u b l i c a t i o n o n P o l i s h e x p o r t s

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APRIL 2-8, 2012

Exports

Healthy exports despite trade gap part to strong consumer demand for imported goods and to the country’s development needs. Machine tools, chemicals and engine parts are all required from neighboring Germany and other nearby countries to drive Poland’s economy out of the development phase and towards convergence with its wealthier neighbors to the west.

Poland’s z∏.59.65 billion trade deficit for 2011 compared to z∏.55.16 billion in 2010 and z∏.37.72 billion in 2009, reflecting the economy’s growing appetite.

SHUTTERSTOCK

Exports strong

A weak z∏oty helped Polish exporters in 2011

The strength of German exports still remains key for Polish companies For years, Poland has imported more than it exports.

According to preliminary fig-

ures from the Ministry of Economy, that trend continued last year, with the country’s trade deficit standing at a preliminary z∏.59.65 billion for full-year 2011.

The perennial trade deficit is due in significant

Contrary to many developed economies currently experiencing widening deficits, Poland’s trade gap is not seen as reflecting a lack of competitiveness, or weak export growth. In 2011, total Polish exports denominated in z∏oty grew by 15.3 percent year-onyear to z∏.554.77 billion, on the back of a weak z∏oty and strong German exports in the first half of the year.

The strength of Germany’s exports, and therefore the state of the global economy, is

key for Polish companies since many components and raw materials used in German exports are sourced from Poland. Around 40 percent of Polish automotive components, for example, are sent to Germany, according to the European Automobile Manufacturers’ Association. That figure appears even more significant considering that roughly 98 percent of the Polish car industry’s output is exported.

Luckily for Poland, German exports were healthy in the first half of last year, meaning producers in that country filed large numbers of orders with Polish suppliers. A weakened z∏oty, which fell by roughly 15 percent against the euro in H2 2011, also aided Polish exporters by making Polish products more price-competitive for those buying in euro.

The importance of Germany to Poland’s exporters is underlined by trade data for 2011, which show that 26.1 percent of all Polish exports headed to Germany. In second place was the UK, where just 6.4 percent of Polish exports were sent.

Important commodities Products of the chemical industry, mineral products, and plastics and rubber are all Polish-sourced commodities that end up in Germanmade goods. Ready-made products including transport equipment and articles made from metal are also important. Meanwhile, machinery and mechanical appliances, electrical and electrotechnical equipment was the most important commodity for Poland in 2010 (latest data available), earning the coun-

Exports by commodity type in 2010 (in 2010 prices, € billions) Commodity type

Mineral products

15.5

Transport equipment

13.8

Products of the chemical industry

13.5

Plastics and rubber, and articles thereof

9.8

Textiles and textile articles

6.0

Prepared foodstuffs

4.5

Pulp of wood, paper, paperboard and articles thereof

3.7

Live animals; animal products

2.9

Vegetable products

2.9 Source: GUS

Gaining ground

Beauty boom

More than 20 years after the fall of communism, the Polish defense industry is still coping with major restructuring and a complete reorientation of its production. And despite Polish defense firms successfully landing deals to provide an increasing number of (mainly Asian) countries with military equipment, much remains to be done before Poland can compete with many major Western countries.

No records of actual exports from the Polish defense industry are available, and so figures pertaining to the value of export licenses issued serve as a rough estimate. In 2006, the value of

January 2012 when it signed a z∏.1 billion contract to supply the Indian army with 204 WZT-3 Armored Recovery Vehicles.

This is the largest contract the Polish defense industry has seen in years. In recent times, Bumar has also sold PT-91 M tanks to Malaysia and Grom rockets to Indonesia. “We have also delivered 48 MBT PT-91Ms to Malaysia and short-range air-defense systems (KOBRA) to Indonesia,” said Bumar spokesperson Tomasz Badowski.

The company’s plan for 2011 was to earn z∏.2.9 billion in revenues, of which z∏.530 million was expected to come from exports.

Success in sight

Black Hawk up

By far the largest player in the Polish market is the Treasury-owned Bumar Group, which received a big boost in

But Poland’s defense industry offer isn’t only restricted to Bumar. Poland also does reaContinued on p. 14 ➡

Polish cosmetics firms, resilient during the crisis, are looking to expand to emerging markets The export of Polish cosmetics is a multi-billion-dollar business, and it’s going rather well. Indeed, despite the European financial crisis, Polish cosmetics exports are continuing to climb steadily. But while countries in Europe remain Polish firms’ largest trading partners, many now plan to expand to other regions, including emerging markets.

Stellar growth Poland’s cosmetics industry experienced an impressive boom at the turn of the 2000s.

According to a 2007 study by research firm Global Insight, the size of Poland’s cosmetics export market grew by an

2010

Machinery and mechanical appliances, electrical and electrotechnical equipment 32.8

Cosmetics

such licenses issued was €275 million. By 2008 that number had grown to €368 million and in 2009 it leaped up to €1.4 billion. However, the jump in 2009 was mainly due to cooperation between Polish firms, which jointly delivered components to US and Canadian defense manufacturers. By 2010, the figure had dropped back to €457 million.

These numbers place Poland far behind not only major European countries like France, which boasted defense export sales of €12.6 billion in 2009, Italy (€6.6 billion) and Germany (€5 billion), but also behind the relatively tiny Austria, whose defense exports stood at €2.2 billion that same year.

Gareth Price

Top Polish exports

Defense industry

Poland’s defense industry is slowly getting back on its feet following the end of the Cold War

try’s exporters some €32.75 billion.

Of increasing importance for the future of Poland’s export competitiveness are value-added goods such as high-tech and pharmaceuticals, the development of which is explored in Made in Poland. These and other value-added goods are sectors that Poland will grow to rely on more to help it narrow its trade deficit in the long term, once internal demand begins to cool.

astonishing 400 percent between 1999 and 2005, making Poland one of the fastest growing suppliers of cosmetics in the world during that period.

And growth hasn’t stopped since, with the value of Polish cosmetics exports reaching z∏.8.1 billion in 2010, according to Poland’s Central Statistical Office. This represents an increase of around z∏.1.5 billion from 2009. According to 2010 figures from industry body Cosmetics Europe, Polish cosmetics exports were in sixth place in Europe in terms of value, after giants France, Germany Italy, the UK and Spain.

This success is due in part to the fact that Poland’s cosmetics industry, overwhelmingly composed of SMEs (Global Insight counts 795 such firms, which form 98 percent of companies in the sector), remains innovative. Nev-

ertheless, Polish cosmetic companies are facing an increasingly saturated Western European cosmetics market.

Competition in the European cosmetics industry will no doubt be made more intense as the euro-zone debt crisis shrinks European consumers’ budgets.

Many Polish cosmetics companies wishing to protect themselves from a downturn in Europe are looking to sell their products elsewhere.

Continued on p. 14 ➡

In this supplement Exports . . . . . . . . . . . . . . . . . . . . . . . .11 Defense . . . . . . . . . . . . . . . . . . . . .11,14 Cosmetics . . . . . . . . . . . . . . . . . . .11,14 High-Tech . . . . . . . . . . . . . . . . . . . . . .12 Food . . . . . . . . . . . . . . . . . . . . . . . . . .12 Pharma . . . . . . . . . . . . . . . . . . . . . . . .12 Made in Poland . . . . . . . . . . . . . . . . .13 Automotive . . . . . . . . . . . . . . . . . . . .13

12

MADE IN POLAND

www.wbj.pl

APRIL 2-8, 2012

High-tech

Polish companies are making high technology

and Poland hasn’t fared well in this regard. The country had the fifth-lowest expenditure on R&D in the OECD as of 2009 (latest data available).

In practice however, the Polish economy is home to a respectable and growing volume of high-tech manufacturing. Manufacturing of medical, optical and precision instru-

“Made in Poland” is not something you might expect to see written on a bleeding-edge product. Indeed, innovation is often closely linked with a country’s expenditure on research and development,

Room for growth High-technology exports (as % of total global high-tech exports), selected EU27 member states in 2008 10 8.2 8 6 4.7

4.5

4

3.2 1.9

2

1.0

1.0 0.3

0.3 y No rwa

nd Po la

ry Re pu blic

Hu ng a

Cz ech

nce Fra

UK itze rla nd Sw

Ne

Ge rm a

ny the rla nd s

0

Source: Eurostat

ments involves dozens of modestly innovative local SMEs, for instance. Meanwhile, production volume in the electronics sector is far greater but also largely dominated by multinationals. LG Display, Toshiba and TPV Electronics all have major production manufacturing centers in Poland that export throughout the region.

Some of Poland’s most important high-tech exporters don’t manufacture anything at all. They design, code and service their products.

Polish software developers – and video-game makers in particular – have earned international recognition. CD Projekt has built a strong reputation with its “Witcher” role-playing games, and has another four game titles in the pipeline between now and 2015. Techland’s “Dead Island” sold a remarkable three million copies between its early September 2011 debut and the end of the year, while City Interactive sold

COURTESY OF CITY INTERACTIVE

Next-gen, today

Polish video-game makers and software producers are aiming for international success over two million units of its “Sniper” game between mid2010 and the end of 2012.

Many other software producers are headquartered in Poland, such as IT-solutions giant Asseco Poland, which has subsidiaries throughout Europe and posted consolidated sales revenues of over €871 million for the first nine months of 2011. Or Comarch, a rival of Asseco with a similar business profile, which earned sales revenues of €124 million for Q1-Q3 2011.

There are plenty of other high tech firms and niches. Military and security robots are being created by the Industrial Research Institute for Automation and Measurements. Gallium nitride-based blue lasers and substrates are being produced by TopGaN and Ammono, respectively. And new players appear regularly in different sectors. “[Polish] firms are innovative,” said Sebastian Christow, director of the Electronic Economy Department at the

Polish Economy Ministry. But, he admitted, “our internal market is big enough that producers don’t always look outward.”

There’s reason to be optimistic, though. Even if Polish expenditure on R&D remains woefully inadequate, there’s been an upward trend in spending since 2006. The number of international patent applications filed from Poland has been rising since 2005. And foreign perceptions of Poland are slowly changing, for the E Blake Berry better.

Food

Pharmaceuticals

A record year in the face of adversity

Searching for new opportunities

Poland used its presidency of the EU to successfully promote Polish agricultural produce

Polish membership of the EU (starting in 2004) has helped open up new export possibili-

Minister Sawicki (right) showcased Polish delicacies in Brussels during Poland’s EU presidency ties, since many barriers to foreign trade have been removed.

This is evidenced by a sizable rise in the value of Polish food exports since accession, from €4 billion in 2003 to an estimated €14 billion in 2011.

According to preliminary data from Poland’s Central Statistical Office, the value of agri-food exports during the first 11 months of last year exceeded the value of export sales in the same period of 2010 by almost 14 percent.

The country’s recent sixmonth presidency of the Council of the EU also provided Poland with a golden

opportunity to promote Polish produce.

Under the motto “Polska … Tastes Good!” the ministry showcased Polish produce at various formal and informal meetings during the presidency, which finished at the end of 2011.

“Polish food produce were widely discussed in Strasbourg and Brussels while we were promoting Kashubian strawberries, ¸àck apples or the Saint Martin croissants. ... This promotion has been very effective,” said Mr Sawicki.

David Ingham

Looking east Polish pharma company Polpharma has focused on exporting its generic medicines to Russia and the Commonwealth of Independent States, as well as to countries in Central and Eastern Europe. In 2011, the firm made several acquisitions, with the aim of becoming a leading generics producer in CEE. Among other acquisitions, it purchased Kazakhstani drugmaker Chimpharm and a majority stake in Russia’s Akrikhin.

In October last year, Polpharma won a tender to purchase Polfa Warszawa. Like Polpharma, Polfa is focused on the Russian market, where it has a strong, established presence, and on emerging CIS countries, where it has suc-

SHUTTERSTOCK

EU impact

Polish pharmaceutical producers, heavily involved in making inexpensive versions (generics) of drugs, have recently ridden the crest of a wave, as Polish authorities strove to bring affordable medicines to as many people as possible.

With this goal more or less achieved and the government anxious to reduce expenditure on pharmaceuticals to balance the budget, Polish drugmakers are increasingly on the lookout for markets where expansion is taking place – or alternatively, where cost-containment is forcing payers to find evercheaper treatment options.

COURTESY OF THE EU COUNCIL

Last year proved to be a successful one for Poland’s agricultural market. This was despite testing times that saw adverse weather affecting crops, and a costly outbreak of E.coli bacteria in neighboring Germany that lead to a Russian embargo on EU fruit and vegetables.

“Last year was a very hard year for farmers. The harvest was one of the worst for the past 40 years,” Poland’s Minister of Agriculture, Marek Sawicki, told WBJ. Despite the difficulties encountered, 2011 was a record one for Poland in terms of the performance of agrifood exports, which were up €3 billion on 2010, to just over €14 billion, according to the Ministry of Agriculture.

“When it comes to the agrifood market, what proves that it was not a bad year are the sales results for foreign trade of agri-food goods,” Mr Sawicki said.

Polish firms are expanding abroad as government spending falls in Poland

EU countries are proving increasingly attractive for Polish firms

ceeded in boosting its sales in recent years.

“Russia is an attractive market for Polish pharma companies ... but only for those producers which have factories there,” said Monika Stefaƒczyk, chief pharmaceutical analyst at research firm PMR. Others, she explained, may face difficulties with getting their medicines on local reimbursement lists.

No such potential regulatory obstacles exist, however, in the single market of the EU.

Going west EU countries offer increasingly attractive export opportunities for Polish producers, with the euro-zone debt crisis forcing consumers to reduce their outgoings and look for cheaper drugs.

“Polish firms are already attempting to take advantage of this opportunity,” said Maciej Kuêmierkiewicz, director of consulting at the Polish branch of consulting firm IMS Health.

Indeed, cash-strapped Western nations have implemented a wave of major health care cost-containment legislation, and governments and regulators across the EU are seeking to boost the use of generics.

Polish pharma producers are therefore well positioned to take advantage.

Brian Davies

MADE IN POLAND

APRIL 2-8, 2012

www.wbj.pl

13

Comment

WBJ supports Polish business through Made in Poland, Polish Export Promotion Program focused-upon factor is growing exports. Poland’s economy is much less dependent on exports than its smaller neighbors. According to the World Bank, exports make up about 30 percent of Poland’s gross domestic product, whereas in Hungary and the Czech Republic, the figure is closer to 80 percent.

That has proven an advantage as the global economy slowed down – as other countries curtailed imports sharply, Poland was able to fall back on strong domestic consumption.

But it also represents a tremendous opportunity. In Germany, the economic powerhouse to Poland’s west, exports account for some 47 percent of GDP, proving that Poland could do more. More importantly though, as anyone familiar with the top-quality products and services that Polish firms offer could tell you, Polish firms simply aren’t making the most of their export potential. The country’s low production costs combined with increasingly modern technology mean that Polish prod-

This week’s supplement offers readers a sneak-peak of Made in Poland 2012, the second edition of our annual publication on Polish exports As Poland looks to keep economic growth churning, it needs to concentrate on several things. Becoming more innovative by encouraging more investment in research and development, is one of them. Another is making the business environment as attractive as possible, so as to lure more foreign investment.

But another, often less

ucts offer excellent value. But still, a relatively small number of companies venture to sell their products abroad.

Export promotion For that reason, Warsaw Business Journal has joined with the Polish Chamber of Commerce to create the Polish Export Promotion Program, which aims to showcase the best of Polish products to the world. Part of the initiative is our annual publication, Made in Poland, which delves into detailed analysis of Poland’s top export sectors, profiles trade relationships with important international partners and provides information on Poland’s economy and resources. The aim is to give potential importers of Polish goods all the information they need to find the right Polish product and partner to help their business.

This year’s edition – our second after last year’s inaugural publication – will publish at the end of April. In this supplement, we are giving you a sneak-peak at what’s inside.

We’ve highlighted some of the best content, but there will be so much more. All of the stories you are reading here are abridged from the versions that will be found in Made in Poland, as is the list of top exporters.

You’ll also find an entire section anal y z i n g Po l a n d ’ s macroeconomics, and comment a r y from the chambers of commerce of countries that are some of Poland’s most important trading partners. It will also include commentary from Poland’s Agriculture, Economy and Foreign Affairs Ministries. It’s a must-have for anyone wanting to know more about Poland’s exports and its export market.

But along with that publication, the Polish Export Promotion Program includes the Mister and Junior of Export competition, under the leadership of the Polish Chamber of Commerce. The competition will award several companies in various sectors

for export products that show a particular quality and econ o m i c value. The awards will culminate in a gala that will take place this summer. All of the details, as well as a submission form for entering the competition, will be available in the Made in Poland 2012 publication.

Polish exporters have a lot to offer, and more people and businesses around the world need to know that.

We hope that through this program we can help make that happen.

Andrew Kureth

Automotive

After a good year in 2011, the Polish automotive industry, heavily reliant on exports to the euro zone, is holding its breath

Polski Fiat, the Polonez, the Warszawa and the Fiat 126, known affectionately as the ‘Maluch’ (‘the small one’), dominated the country’s roads.

Today, the country’s automotive industry is firmly geared towards exports, with a staggering 98 percent of Polish automotive products destined for foreign markets.

Relatively low labor and production costs still entice multinational companies to manufacture vehicles in Poland, with three major foreign-owned manufacturing

Poland has a long tradition of manufacturing vehicles and spare parts for the automotive sector. Italian giant Fiat has produced cars in Poland since 1920, and throughout the years of the People’s Republic of Poland, models produced

by Polish firm FSO such as the

The top five Five most important destinations for Polish automotive exports (2010, € billions) 30 25 Value of exports

20 Percentage of total exports

15 10 5

lic

m

Re p Cz ech

Kin g ite d Un

ub

do

nce

ly Ita

Fra

Ge

rm a

ny

0

Source: AutomotiveSuppliers.pl, Eurostat

plants currently in operation: Fiat Auto Poland in Tychy, Opel (owned by General Motors Manufacturing Poland) in Gliwice and Volkswagen in Poznaƒ.

By any standards, 2011 was good to Polish automotive exporters. Rafa∏ Or∏owski, an analyst at AutomotiveSuppliers.pl, estimates the total value to be somewhere between €18.7 billion and €19.1 billion, which would be the highest in the history of Polish automotive exports, he said.

The feat is even more impressive considering the sector’s heavy reliance on exports to the euro zone, which was blighted by economic troubles through much of 2011.

But some fear that 2012 might be the year when the industry starts to truly feel the pinch.

An important factor is that Austria, Germany and Italy have decided to halt their fleet renewal schemes, a big driver of Polish production in 2009 and 2010. The programs, which encouraged motorists to trade old cars for new ones by giving them a financial incentive, are

COURTESY OF FIAT AUTO POLAND

Looking to Europe

Last year may just have been one of the best in the history of Polish automotive exports expected to be a big loss for Poland.

Exporters of spare parts and components are also forecast to see demand fall since Germany, France, Italy and the Czech Republic, currently the main markets for Polish suppliers, are expected to reduce their own car production levels.

Still, as long as the situa-

tion in Europe remains stable, 2012 should see comparable production levels to 2011, according to experts.

Wojciech Drzewiecki, head of automotive research firm Samar, also pointed to Opel’s production of the new Astra GTC IV model and the production of the Caddy model

by VW in Poznaƒ, which he said should ensure that Euro-

pean and German demand for Polish automotive imports remains high.

This year may not be as exceptional as 2011 was for Polish automotive exports.

But whatever it brings, the industry will undoubtedly be forced to keep a watchful eye on economic developments in the euro zone.

Liam Nolan

14

MADE IN POLAND

www.wbj.pl

APRIL 2-8, 2012

Cosmetics: Searching for growth markets

Defense: Gaining ground

➡ Continued from p. 11

COURTESY OF WIKIMEDIA COMMONS

Major Polish cosmetics firms including DAX Cosmetics, Dr. Irena Eris, Inglot, Oceanic, Soraya and Ziaja have engaged, or are planning to engage, new markets.

PZL Mielec produces Black Hawk S-70i helicopters for export ➡ Continued from p. 11 sonably well with assault-rifle sales, mostly due to exports to the US. In 2010, 2,000 7.62mm AKMs were exported there, 4,000 7.62 mm AK-47s and 1,400 7.62 mm DPMs. PZL Mielec is the biggest Polish aircraft manufacturer.

Today, it manufactures both civilian and military aircraft, including the S-70i Black Hawk helicopter (Sikorsky aircraft, owner of the Black Hawk brand, is a sister company). The company plans to build 20 of these machines annually from 2012, all slated for export sales.

In December 2011, Sikorsky Aircraft signed a contract with Brunei’s Ministry of Defense to

provide 12 S-70i Black Hawk helicopters with associated spare parts, training and ground support equipment.

The aircraft will all be built in Mielec. The contract also contains an option for 10 additional helicopters.

Further potential But while Polish firms are encountering more and more success abroad, these markets are not easy to navigate and require a certain level of political support. “In markets such as Asia and Africa, strong political support is required to do business,” said Jakub Jaworski, director of the international cooperation office at the Polish Chamber

of National Defense Manufacturers.

“In those countries they ask two questions: does your own army use this equipment and do you have the support of your government,” he added.

According to him, countries like the US and the UK actively support and lobby for their defense firms abroad, which is not always the case with the Polish government.

Poland’s defense industry still has much work to do in order to compete with the world’s best, but an increase in political support from the government and continued innovation by its firms would likely herald many better days ahead.

Remi Adekoya

Global expansion Polish cosmetics products are already well-known in Russia, the top destination for Polish perfumes, perfumery products, make-up, skincare and hair treatments in 2010. One reason for this popularity may be that cosmetics are cheaper to produce in Poland than, for example, in Western Europe, which results in lower retail prices.

Oceanic, which attributes most of its success to the good price-to-quality ratio of its products, already exports to 25 countries and has plans to enter more countries in Western Europe and also markets in North Africa. Polish DAX Cosmetics also has a strong presence in emerging markets including Egypt, Hong Kong, Jordan, Labanon, Saudi Arabia, South Korea, Turkey and UAE. The firm, which saw its export sales increase by 29 percent in 2011, now plans to expand to Russia, South Africa and Spain .

Meanwhile, Dr. Irena Eris,

one of the best-known brands on the Polish market, will soon enter the Chinese and Malaysian markets. The firm is already active in Hong Kong, South Korea and Taiwan. Company co-owner Henryk Orfinger recently told Puls Biznesu that he expects foreign markets to help drive a 30 percent increase in sales in 2012.

Of course, trying to enter foreign markets is not without its challenges. According to Lidia Ziaja, export manager at skincare company Ziaja, the process of entering the Chinese market can be long and costly, as each product

Raw materials and fuel

Automotive

12,552,021

3 KGHM Polska Miedê SA

Raw materials and fuel

12,023,922

4 Volkswagen Poznaƒ Sp. z o.o.

Automotive

7,367,324

5 LG Electronics M∏awa Sp. z o.o.

Electrical and electronic goods

5,746,303

Metals

5,234,913

2 Fiat Auto Poland SA

6 ArcelorMittal Poland SA

7 LG Electronics Wroc∏aw Sp. z o.o.

Electrical and electronic goods

5,128,044

8 Philips Lighting Poland SA

Electrical and electronic goods

3,734,970

9 GK Grupy Lotos SA

Raw materials and fuel

3,675,842

10 GK GlaxoSmithKline Pharmaceuticals SA

Pharmaceuticals and costmetics

3,376,259

11 Volkswagen Motor Polska Sp. z o.o.

Automotive

3,064,015

12 W´glokoks SA

Raw materials and fuel

2,721,125

13 BSH Sprz´t Gospodarstwa Domowego Sp. z o.o.

Electrical and electronic goods

2,719,579

Company

Top 10 destinations for Polish beauty preparations, skin-care products and other similar products (2010, € million)

Position 1 2 3 4 5 6 7 8 9 10

Country Russian Federation United Kingdom Germany Ukraine The Netherlands France Spain Italy Turkey Romania

Transport and logistics

15 Faurecia w Polsce

Automotive

2,641,403

16 TRW Polska Sp. z o.o.

Automotive

2,465,679

Metals

2,336,729

18 GK Ciech SA

Chemicals

2,276,135

19 Fiat Powertrain Polska Sp. z o.o.

Automotive

2,186,487

20 Toyota Motor Manufacturing Poland Sp. z o.o.

21 Grupa Tele-Fonika Kable Sp. z o.o. S.K.A.

Automotive

2,177,351

Electrical and electronic goods

2,119,940

22 Polska ˚egluga Morska PP

Transport and logistics

2,106,921

23 Indesit Company Polska Sp. z o.o.

Electrical and electronic goods

2,088,313

24 Electrolux Poland Sp. z o.o.

Electrical and electronic goods

1,928,725

Automotive

1,800,762

E-mail/website

ul. Chemików 7 09-411 P∏ock tel: (+48) 24 365 00 00 fax: (+48) 24 365 40 40 Al. WyÊcigowa 6 02-681 Warsaw tel: (+48) 22 607 4732 ul. M. Sk∏odowskiej-Curie 48 59-301 Lubin tel: (+48) 76 747 82 00; fax: (+48) 76 747 85 00 ul. Warszawska 349 61-060 Poznaƒ tel: (+48) 61 876 17 81 fax: (+48) 61 876 14 73 ul. LG Electronics 7 06-500 M∏awa tel: (+48) 23 654 74 04 fax: (+48) 23 654 3259 Al. Józefa Pi∏sudskiego 92 41-308 Dàbrowa Górnicza tel: (+48) 32 776 66 66 fax: (+48) 32 776 82 00 ul. LG Electronics 1-2 55-040 Biskupice Podgórne tel: (+48) 71 792 94 00 fax: 48 71 792 94 05 ul. Kossaka 150 64-920 Pi∏a tel: (+48) 67 35 13 000 ul. Elblàska 135, 80-718 Gdaƒsk tel: (+48) 58 326 43 00 fax: (+48) 58 301 88 38 ul. Rzymowskiego 53 02-697 Warsaw tel: (+48 ) 22 576 90 00 fax: (+48) 22 576 90 01 ul. Strefowa 1 59-101 Polkowice tel: (+48) 76 848 3000 fax: (+48) 76 848 34 00 ul. Mickiewicza 29 40-085 Katowice tel: (+48) 32 258 24 31 fax: (+48) 32 251 54 53 Al. Jerozolimskie 183, 02-222 Warsaw tel: (+48) 22 572 76 00; fax: +48 (22) 572 66 00

zarzad@orlen.pl www.orlen.pl

14 PLL LOT SA

www.fiat.pl www.fiatgroup.pl ir@kghm.pl www.kghm.pl

Sector

www.volkswagen-poznan.pl 17 Grupa Can-Pack SA www.lg.com/pl/

www.arcelormittal.com/poland/

www.lg.com/pl/

www.lighting.philips.pl

lotos@grupalotos.pl www.lotos.pl

www.gsk.com.pl

vwmp@vwmp.pl www.vwmp.com.pl

info@weglokoks.com.pl www.weglokoks.com.pl

www.bsh-group.pl

25 Grupa Valeo Automotive

Value 310 226 167 134 82 73 69 67 64 59 Source: GUS

Revenues from export in 2010 (in z∏. mln) 2,648,545

Address

Rank

1 PKN Orlen SA

Revenues from export in 2010 (in z∏. mln) 24,635,025

Rank

Sector

Ella Pa∏ka

Mirror, mirror

Top 25 Largest Polish Exporters (2010) Company

has to be registered, tested and approved by Chinese authorities. But she said her company is working towards this goal.

It’s too early to tell whether Polish cosmetics companies will defy the European downturn and continue to push their exports with the same impressive growth levels that have characterized the last decade. But with competitive prices and a healthy dose of innovation, Polish cosmetics firms seem well prepared to venture far away from their traditional markets.

Source: “100 Largest Exporters in 2010.”

Reprinted with permission of Polityka

Address

E-mail/website

ul. 17 Stycznia 39 03-906 Warsaw tel: (+48) 22 577 61 11 ul. Spó∏dzielcza 4, 05-600 Grójec tel: (+48) 48 665 01 13 fax: (+48) 48 665 03 03 ul. Rolnicza 33 42-200 Cz´stochowa tel: (+48) 34 343 10 03 fax: (+48) 34 369 34 30 ul. Jasnogórska 1, 31-358 Kraków tel: (+48)12 662 34 03 fax: (+48) 12 662-34-19 ul. Pu∏awska 182, 02-670 Warsaw tel: (+48) 22 639 10 00; fax (+48) 22 639 14 51 ul. Gra˝yƒskiego 141, Bielsko-Bia∏a, 43-300 tel: (+48) 33 8132 100 fax: (+48) 33 8132 451 ul. Uczniowska 26, 58-306 Wa∏brzych tel: (+48) 74 888 80 00 ul. Wielicka 114, 30-663 Kraków tel: (+48) 12 652 5000; fax: (+48) 12 652 5156 Pl. Rod∏a 8, 70-419 Szczecin tel: (48) 91 359 4333; fax: (+48) 91 359 4288 ul. J. Dàbrowskiego 216, 93-231 ¸ódê tel: (+48) 42 645 51 00; fax: (+48) 42 645 51 91 ul. Kolejowa 5/7, 01-217 Warsaw tel: (+48) 22 568 98 67 fax: (+48) 22 434 73 03 ul. Przemys∏owa 3, 32-050 Skawina tel: (+48) 12 299 80 00; fax: (+48) 12 299 80 04

lot_info@lot.pl www.lot.com www.faurecia.pl

www.trw.pl

canpack@canpack.eu www.canpack.eu

ciech@ciech.com www.ciech.com

www.fiat-gm-pwt.pl

www.toyotapl.com/walbrzych

www.tfkable.com/pl

www.polsteam.com.pl

service.pl@indesit.com www.indesit.pl

www.electrolux.pl

valeo@valeo.com www.valeo.pl

Skanska Residential Development Poland will soon launch its first project

The Poznaƒ region looks set to be a vibrant logistics location in the upcoming years

16

17

LOKALE IMMOBILIA

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

Galeria Warmiƒska closer to getting permit Finishing work is underway on a zoning plan in Olsztyn, Warmiƒsko-Mazurskie voivodship, which covers the area in which Libra Project wants to build its Galeria Warmiƒska shopping and entertainment scheme.

The zoning plan is expected to be ready in April. Once it is adopted by the Olsztyn City Council, Libra Project will be able to apply for a building permit for the Galeria Warmiƒska mall.

“We expect the investor to be able to start construction by the end of this year,” Olsztyn Mayor Piotr Grzymowicz said in a statement. ●

Cornerstone for Olivia Point and Olivia Tower projects in Gdaƒsk TPS is building new phases of its Olivia Business Centre in the city’s Oliwa district Developer TPS last week held a cornerstone laying ceremony at the construction site of the second and third phases of its Olivia Business Centre office complex in Gdaƒsk. The connected structures are scheduled to be completed in the last quarter of this year.

The Olivia Business Centre investment is located on Al. Grunwaldzka in Gdaƒsk’s Oliwa district. The phased development will sit on 3.5 hectares of land and will comprise a total of almost 120,000 sqm of office space, when completed.

The first building in the complex – Olivia Gate – opened for business in November last year delivering more than 17,000 sqm of GLA. Its tenants include Goyello, PwC, Meritum Bank,

The latest phases of Olivia Business Centre will be ready by the end of this year SII, AOS, GFKM, Energa Group companies and PKO BP.

The company acquired the plot, which is located at the intersection of E∏k’s ul.

Dàbrowskiego and ul. KoÊciuszki, from the E∏k City Hall in a tender procedure. It plans to apply for a building permit for the Brama Mazur scheme in AZ the next few months.

In this issue Olivia Business Centre . . . . . . .15 Żoliborz One offices . . . . . . . . .15

Skanska homes . . . . . . . . . . . . .16 Foreign currency mortgages . .16 Property-related stocks . . . . . .16 Poznań warehouses . . . . . . . . .17 Green buildings . . . . . . . . . . . . .17

COURTESY OF QUESTIA

Brama Mazur mall . . . . . . . . . . .15

Brama Mazur will provide 16,250 sqm of space

result of the success of the first building in Olivia Business Centre,” said Maciej Grabski,

Adam Zdrodowski

˚oliborz One offices underway

MMG acquires land for Brama Mazur mall in E∏k Retail space manager and developer Master Management Group has acquired 1.85 hectares of land in downtown E∏k, Warmiƒsko-Mazurskie voivodship, on which it plans to develop a 16,250-sqm shopping and entertainment center called Brama Mazur.

“The construction of the second and the third office buildings in Oliwa is a natural

the investor behind the Olivia Business Centre complex.

“Practically all the space in the first office building has already been taken up by tenants and the interest in our investment on the part of companies looking for office space remains high,” Mr Grabski added.

Called Olivia Point, the second phase of Olivia Business Centre will be a sevenfloor building offering 9,600 sqm of leasable space. It will be connected with the third phase, which is called Olivia Tower, up to the height of the fifth floor.

Olivia Tower will be a 12floor office building comprising 14,200 sqm of leasable space. The ground floors of both the second and the third phase of Olivia Business Centre will house service space and both structures will feature connected two-floor underground parking lots.

Developer Apricot Capital Group has launched construction on its ˚oliborz One office project in Warsaw. The scheme is the first phase of an investment that will in the future also include a housing estate comprising 350 apartments.

Located on ul. Szamocka in the capital’s ˚oliborz district, close to the planned extension of the district’s ul. Krasiƒskiego, the ˚oliborz One project will be a nine-storey building offering more than 8,700 sqm of class-A office space.

The development is scheduled to be completed in May next year and open for business in mid-July. Budimex is the general contractor of the project.

Adam Zdrodowski

COURTESY OF APRICOT CAPITAL GROUP

Jones Lang LaSalle is looking for office space in the Tri-city area that will accommodate a finance and accounting shared service center whose creation in the agglomeration has recently been announced

by Bayer. The center, which will service the CEE region, is expected to be ready for use by the end of this year. It will employ over 200 people and take up approximately 2,500 sqm of space.

APRIL 2-8, 2012, LI 17/13

Office

COURTESY OF TPS

JLLS looks for offices for Bayer

•

The project will deliver over 8,700 sqm of office space

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

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

APRIL 2-8, 2012

Developers

Warsaw Stock Exchangelisted developer Dom Development has launched sales of apartments in its M∏yny Królewskie multifamily residential project in the Polish capital. The scheme is the third new housing development for which the company has launched sales this year. The investment will be built in Warsaw’s Wola district and will comprise four buildings housing a total of 294 apartments. The first units in the scheme are scheduled to be turned over in Q4 of 2013.

Atlas Estates’s 1,000th Warsaw home Warsaw Stock Exchangelisted developer Atlas Estates has announced the sale of its 1,000th apartment in the Polish capital. The company has been present in the Polish market for six years. It is now building the Concept House Mokotów and Apartamenty przy Krasiƒskiego schemes in Warsaw. ●

Skanska Residential Development Poland set to launch first project in Q2 The developer wants to become a leading player in the Polish housing market Developer Skanska Residential Development Poland plans to launch construction on its first investment in Warsaw by the end of the second quarter of 2012. The project will be located near ul. Ostrobramska in the capital’s Praga Po∏udnie district and will comprise approximately 1,600 apartments, when completed.

The scheme will sit on almost seven hectares of land that the firm acquired from Polish Investments Real Estate Holding in autumn last year.

Along with the land, Skanska also purchased the design of the planned development and a building permit.

The whole investment will be built in approximately six to seven phases, each of them comprising two to four buildings. The first phase of the project will deliver 300 units, said Micha∏ Melaniuk, vice president of Skanska Residential Development Poland.

Meanwhile, the company is

already looking for other plots in Warsaw on which it wants to build large-scale multifamily residential projects. “We are in negotiations concerning the acquisition of a plot of land in the Mokotów district which we expect to finalize in the next few weeks,” Mr Melaniuk said.

He added that some 1,000 units will be built in the location with construction expected to launch next year. “In the second half of this year, we’ll probably start looking for plots for other new projects in Warsaw,” Mr Melaniuk said.

Ambitious plans Skanska Residential Development Poland was formally launched in May last year and has since been preoccupied with the organization of its business in the country. The establishment of the firm, Mr Melaniuk said, was a natural step in the development of Skanska’s operations in Poland.

He pointed out that internationally the Skanska Group is involved in four basic types of operation – general contractor services and the develop-

ment of commercial, residential and infrastructure projects.

Until last year, only the construction and commercial space divisions of Skanska had been active in Poland. The group had previously built some apartments in Warsaw, but the creation of a separate residential arm means the group now wants to be more seriously involved in the sector.

Mr Melaniuk admitted that the residential market may currently be perceived as less promising than the commercial sector, but said that the market is cyclical and that it is better to start new residential projects when the housing market is less heated than during a development boom.

In the long run, Mr Melaniuk sees Skanska Residential Development Poland as one of the largest residential developers in Poland. The company wants to focus on large-scale projects and ultimately to record annual sales results comparable to those of the current market leaders.

Green homes How is Skanska Residential

COURTESY OF SKANSKA RESIDENTIAL DEVELOPMENT POLAND

M∏yny Królewskie on sale

Mr Melaniuk said his company’s apartments will be characterized by green solutions Development Poland going to reach that stage? According to Mr Meleniuk, the company’s projects will be characterized by high quality and functionality. They will also be built in locations with welldeveloped transportation links and other infrastructure.

Perhaps not surprisingly, the developer is also going to focus on green solutions in its residential schemes. Sustainable building is a much-cherished value in the Skanska

Group and the company is already well known for the use of green solutions in its office buildings, Mr Melaniuk said.

As far as the standard of the planned Skanska homes is concerned, they will not belong to either the low-end, or the luxury segments of the market. “We expect that the prices will be very close to the average apartment price in Warsaw,” Mr Melaniuk said.

Adam Zdrodowski

Mortgages

Property-related stocks Security

Closing price on March 29

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

85.30

-2.40

64.00

109.20

99.50

25,530,098

2,177.72

CELTIC

15.50

-12.48

15.00

22.70

20.50

34,068,252

528.06

DOMDEV

34.66

-8.79

23.50

50.80

47.00

24,670,397

855.08

ECHO

4.35

1.64

3.05

5.55

4.87

420,000,000

1,827.00

ELBUDOWA

117.40

4.82

87.00

168.00

159.50

4,747,608

557.37

ENERGOPLD

1.96

0.51

1.81

4.10

4.10

70,972,001

139.11

ERBUD

16.40

-13.23

14.65

40.00

40.17

12,644,169

207.36

GANT

7.95

-0.63

5.85

14.20

14.00

20,499,953

162.97

GTC

6.60

8.20

6.10

21.79

21.10

219,372,990

1,447.86

HBPOLSKA

0.93

13.41

0.70

2.44

2.49

210,558,445

195.82

JWCONSTR

6.21

1.80

4.36

15.50

14.47

54,073,280

335.80

LCCORP

1.44

5.11

0.85

1.62

1.57

447,558,311

644.48

MARVIPOL

8.90

-7.29

7.22

9.95

9.05

36,923,400

328.62

MIRBUD

1.97

-3.90

1.94

4.54

4.56

75,000,000

147.75

MOSTALWAR

15.65

-1.39

15.40

45.00

44.65

20,000,000

313.00

MOSTALZAB

1.52

7.80

1.07

2.89

2.74

149,130,538

226.68

ORCOGROUP

15.80

-1.37

14.00

40.00

37.99

17,053,866

269.45

PBG

38.45

11.94

34.35

188.00

184.30

14,295,000

549.64

PLAZACNTR

2.63

-4.36

1.80

5.15

4.20

297,174,515

781.57

POLAQUA

6.40

0.95

4.53

18.99

17.20

27,500,100

176.00

POLIMEXMS

1.35

2.27

1.23

3.64

3.50

521,154,076

703.56

POLNORD

14.76

-2.96

11.03

33.55

31.72

23,798,439

351.26

RANKPROGR

13.95

-0.36

8.60

16.97

11.20

37,145,050

518.17

ROBYG

1.66

-2.35

1.04

2.13

2.05

257,390,000

427.27

RONSON

1.01

-0.98

0.77

1.58

1.41

272,360,000

275.08

TRAKCJA

1.13

-9.60

0.65

3.72

3.51

232,105,480

262.28

ULMA

69.65

-0.50

57.00

88.00

82.30

5,255,632

366.05

UNIBEP

5.85

5.60

4.47

7.75

7.85

33,927,184

198.47

WARIMPEX

4.05

-2.41

2.95

10.89

10.06

54,000,000

218.70

ZUE

7.90

1.28

5.07

13.29

13.60

22,000,000

173.80

Swiss franc mortgages disappear from the market The availability of mortgages denominated in euro is steadily decreasing too Nordea Bank stopped lending mortgages denominated in foreign currencies last month.

The bank was the last lender offering Swiss franc-denominated mortgages in Poland, which means the availability of that type of loan has now effectively ended in the Polish market.

Swiss franc-denominated mortgages were highly popular in Poland from 2006 to 2008, according to a recent report by real estate advisory Home Broker. According to Polish Bank Association data, such mortgages accounted for 69 percent of the total value of mortgages granted in 2008.

By 2011, however, the amount had decreased to seven percent as banks, prompted by regulators and worried by instability in the financial markets, gradually removed Swiss franc-denominated loans from their offers.

Last year, the move was

made by banks including MultiBank, PKO BP, Deutsche Bank and Polbank, the Home Broker report said. Meanwhile, both that study and a recent report by financial consultancy Open Finance, show that the number of euro-denominated mortgages being offered has been shrinking as well.

Currently, 10 banks in Poland offer such mortgages, three of which require that the mortgage-taker has a salary paid in the common European currency. Most of the remaining banks have special restrictions concerning credit worthiness as far as euro-denominated loans are

concerned.

Both Home Broker and Open Finance said that the relative attractiveness of mortgages denominated in the Polish currency is growing, with some of the cheaper loans in z∏oty now able to compete with those denominated in euro. “[Our] analysis leads us to conclude that a ‘cheap’ mortgage denominated in the z∏oty is slowly becoming a competitive solution for the more and more expensive mortgages denominated in the euro,” the Home Broker report said.

Adam Zdrodowski

SHUTTERSTOCK

16

Swiss franc-denominated mortgages were highly popular in the Polish market from 2006 to 2008

APRIL 2-8, 2012

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

17

Warehouses

Sustainable building

Poznaƒ-area market in for years of growth: report

What is the green hype all about?

The region was third in Poland last year in terms of warehouse space leasing activity

of which is located along the A2 motorway. The most important locations in the region include Sady, Komorniki and Gàdki.

Almost 60,000 sqm of warehouse space were under construction at the end of last year. More than 200,000 sqm of industrial space were leased in 2011, which made the Poznaƒ region the third-most active area in Poland, the Jones Lang LaSalle report said. Ahead of it were Warsaw and Silesia.

Adam Zdrodowski

SHUTTERSTOCK

The industrial space market in the Poznaƒ area will experience intensive growth in the upcoming years, driven by both the area’s economic strength and its developing road infrastructure, said a recent report by Jones Lang LaSalle.

Poznaƒ’s prospects have been boosted by the completion of a stretch of the A2 motorway that links the city with Ger-

many. Completion of the under-construction StrykówWarsaw stretch of the same motorway is expected to further strengthen Poznaƒ’s position.

Proof of this is the fact that all the largest industrial developers operating in Poland have land for new projects in the region, with some having already announced plans to go ahead with their investments in the area within the next few months, the study said.

Currently, there are nearly one million sqm of warehouse space in the Poznaƒ area, most

The construction industry takes a closer look at the costs and benefits of green buildings

More warehouse space will appear in the Poznaƒ area in the next few years

Zacznij.biz is a business plan competition organized by Lewiatan Business Angels. There are two editions of this competition: Zacznij.biz “Science – the hidden potential of business” and Zacznij.biz “A new face of your business”.

The purpose of the contests is to promote entrepreneurship, as well as to assist entrepreneurs in preparing their business plans and to help them attract investors – business angels.

The jury selected 80 participants out of 100 applications. Szymon Kurzyca, an investment expert from Lewiatan Business Angels (LBA), noted that the participants showed great understanding for the purpose of business angels, as well as specific aspects of private investment. Business projects taking part in the competition have a real potential for entering the market and give opportunity for an attractive return on investment for the business angels.

Selected contestants were invited to take part in the Innovatorium I. The purpose of this workshop was to deliver the knowledge of business angels expectations regarding marketing aspects, competitors or financial projections and valuations. The workshops were conducted by Szymon Kurzyca and Maciej Strz´bicki, a marketing expert cooperating with LBA.

In recent years developers, building owners and some major tenants in Poland have started paying closer attention to sustainable building.

This is attested to by a steep rise in the number of greencertified buildings both in the country and the wider Central and Eastern Europe region.

But all over the world, green attitudes still have some way to go before they become entrenched in the building industry’s ways. “Consider this: 40 percent of landfill waste globally comes from the building industry, while new buildings make up only 2 percent of the world’s real estate stock and a large share of construction waste is recyclable,” said Devin Saylor, head of Colliers’ green certification services for the CEE region.

The industry will be given a chance to stop and reflect on the costs and benefits of energy saving, emissions reduction and work-place enhancement this month at the first edition of the Real Green Symposium

& Fair. The full-day symposium, which will be followed by the 9th Annual CEEQA Gala in the evening, will feature presentations, case studies and panel discussions devoted to examining “the hard-edge business case for green building.”

For the occasion, Ms Saylor and her team have prepared a short survey based on the four most frequently asked questions they receive about green buildings. They hope that turning around and asking the market these questions will help to dispel misconceptions about green buildings and generate discussion among developers, building owners and major tenants who will attend the conference. “We want to get people questioning what green is, why it is becoming popular, and the real economic bene-

Real Green Symposium & Fair April 17, 9 am – 4 pm Warsaw Marriott Hotel For more information, log on to ceeqa.com fits of it,” said Ms Saylor.

The survey, reprinted here, will also be posted on the website of CEEQA, organizer of the Real Green Symposium & Fair. Attendees will also be able to answer onsite at the conference on April 17. An in-depth article on the state of sustainable building, based on the results of Collier’s survey, will be published in Lokale Immobilia following the conference.

Alice Trudelle

WBJ is a media partner of the Real Green Symposium & Fair and of the 9th Annual CEEQA Gala

Green building survey 1. Green buildings cost significantly more to build than conventional buildings T/F 2. Green building materials are difficult to find in Eastern Europe and are more expensive T/F 3. Green buildings can cost less to operate and maintain T/F 4. Green buildings transact/sell for more than non-green buildings T/F

After Innovatorium I, which took place on February 14-15, 2012, participants were then voted on by the jury. Members of the Zacznij.biz jury include: Jacek B∏oƒski, Szymon Kurzyca, Tomasz Grzybowski, Edward Kozicki, Piotr Pajewski and Maciej Strz´bicki. The jury chose 23 projects to take part in the semi-final phase of the competition.

The purpose of Innovatorium II (which took place on March 30, 2012) was to prepare the participants for the pitch, i.e. presentation of their ideas to the potential investors – business angels. The most promising ideas will be then presented to the business angels at the Final Gala on 17th May 2012.

Members of Jury of Honour of the Zacznij.biz competition are: Bo˝ena Lubliƒska-Kasprzak, President of the Polish Agency for Enterprise Development; Henryka Bochniarz, President of the Polish Confederation of Private Employers Lewiatan; Professor W∏odzimierz Kurnik, Rector of the Warsaw University of Technology; and Professor Micha∏ Kleiber, President of the Polish Academy of Sciences. They will help to choose the winners. Soon we will get to know the most valuable and interesting projects for business angels. www.zacznij.biz.pl

info.colliers.pl/realgreen

THE LIST

APRIL 2-8, 2012

www.wbj.pl

19

Construction & Real Estate

Warehouse Space Developers Ranked by investments completed in 2010

Rank

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

1

Panattoni Europe (Panattoni Poland Sp. z o.o.) ul. Emilii Plater 53, 00-113 Warsaw 22 540-7171/22 540-7170 plinfo@panattoni.com www.panattoni.pl

130,000 230,000 100,000 500,000

1,460,000

2

MLP Group ul. 3 Maja 8, 05-800 Pruszków 22 738-3010/22 738-3019 info@mlp.pl www.mlp.pl

52,100 68,000 WND 44,350

WND

MLP Pruszków I (Pruszków, 2011, 7,542); MLP Pruszków II (Brwinów, 2011, 5,000); MLP Tychy (Tychy, 2011, 3,000)

Class A warehouses with freezer areas; production areas

Build-to-suit

✓ ✓

WND 1999

Michael Shapiro

3

CA IMMO Real Estate Asset Management Poland Sp. z o.o. ul. Emilii Plater 53, 00-113 Warsaw 22 540-6540/22 540-6541 warsaw@caimmo.com www.caimmo.com

WND 39,000 32,000 21,960

WND

WND

Logistics parks; class A warehouses with freezer areas; high storage

Warehouses leasing; build-to-suit

✓ ✓

45 2002

Andrzej Miko∏ajczyk

Platan Group Sp. z o.o. ul. Poleczki 23, 02-822 Warsaw NA 22 545-0245/22 545-0246 platangroup@platangroup.com.pl www.platangroup.com.pl

WND -

WND

WND

High storage

Build-to-suit

✓ -

46 1995

Karolina Kaim

PPMB Promont ul. Metalowa 3, 43-100 Tychy NA 32 720-5300/32 217-0567 promont@promont.eu www.promont.eu

WND 29,000

72,700

Office building/Budynek biurowy (Tychy, 2010, 750)

Logistics parks; freezer areas; high storage

Logistics; warehouses leasing

✓ -

100 1996

Sylwester Baradziej

Problem Sp. z o.o. ul. Przasnyska 6B, 01-756 Warsaw NA 22 866-4444/22 866-4440 info@problem.com.pl www.problem.com.pl

8,000 -

WND

WND

WND

WND

✓ ✓

WND 1988

Andrzej Pazera

51,890 124,000 119,000

WND

Tulipan Park Gliwice DC1 (Gliwice, 2011, 9,550); SEGRO Business Park ¸ódê SBU (¸ódê, 2011, 3,400); SEGRO Industrial Park Tychy DC01 (Tychy, 2011, 15,860)

Logistics parks including freezer areas and high storage

Build-to-suit

WND WND

WND 2006

Torus Sp. z o.o., Sp.k. ul. Arkoƒska 6/A4, 80-387 Gdaƒsk NA 58 764-6376/58 764-6311 torus@torus.gda.pl www.torus.gda.pl

523 1,257

WND

K6 office/biuro (Kowale, 2011, 1,359); K6 warehouse/magazyn (Kowale, 2011, 523)

WND

Build-to-suit

✓ -

40 2002

S∏awomir Gajewski

AIG/Lincoln Polska Sp. z o.o. ul. Grzybowska 5A, 00-132 Warsaw NR 22 564-5000/22 564-5085 office.warsaw@aiglincoln.com.pl www.aiglincoln.com.pl

WND WND WND 48,000

WND

WND

WND

WND

WND WND

WND 1997

Brian Patterson

Prologis ul. Z∏ota 59, 00-120 Warsaw NR 22 218-3600/22 218-3601 info-pl@prologis.com www.prologis.com

WND WND 364,840 416,945

WND

Prologis Park Wroc∏aw V DC1 (Wroc∏aw, 2011, 19,000)

✓ ✓

57 1997

SEGRO Poland Sp. z o.o.

Pl. Andersa 5, 61-894 Poznaƒ NA 61 850-5300/61 850-5301 poland@SEGRO.com www.SEGRO.pl

Investments completed Largest investments (sqm) - Warehouses: Investments completed recently (name, 1st half of 2011 / (sqm) - Warehouses: location,completed completion year, 2010 / Overall usable area - sqm): 2009 / 2008

www.bookoflists.pl

Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for the list was conducted in November 2011. Number of employees is as of October 2011. All information pertains to the companies' activities in Poland. Companies not responding to our survey are not listed.

Warehouse construction: For lease / For sale

Number of employees / Year founded

Top local executive / Title

Gas heating system; skylights and smoke vents; ESFR sprinkler Panattoni Tesco BTS (Gliwice, 2010, systems; light intensity in Warehouse leasing and selling; real 57,000); Panattoni Zelmer BTS accordance the law; clear estate management; asset (Rzeszów, 2011, 32,000); Panattoni height of 10 m;with concrete structures; management; free development Park Toruƒ (Lubicz/Gr´bocin, 2010, column grid 12 m / 22.5 m; transactions; build-to-suit projects; 30,000); Panattoni Park O˝arów jointless floors; 5 t/sqm load floors; buildings commercialization (O˝arów, 2010, 20,000) mechanical ventilation; steel roof structure

✓ ✓

60 2005

Robert Dobrzycki

Type of warehouses constructed

Services offered

BTS building; class A warehouses; light industry space; high storage; 5 Land selection and purchase; buildt/sqm floors; ESFR sprinkler systems; ground floor loading docks; to-suit; real estate management 35 m deep maneuverable areas

Regional Partner

President

Managing Director

President

President

General Director

Magdalena Szulc Business Unit Director Central Europe

President

Managing Director

Ben Bannatyne Managing Director CEE

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

20

MARKETS

www.wbj.pl

APRIL 2-8, 2012

Stocks report

world stock indices DJIA

NASDAQ

13,145.82 (Mar 29 close)

S&P500

3,095.36 (Mar 29 close)

0.76% (for the week)

FTSE100

1,403.28 (Mar 29 close)

1.05% (for the week)

DAX

5,742.03 (Mar 29 close)

0.75% (for the week)

-1.77% (for the week)

Bears gain ground

NIKKEI225 6,875.15 (Mar 29 close)

10,114.79 (Mar 29 close)

-1.52% (for the week)

-0.12% (for the week)

CHANGE: 6.04%

CHANGE: 16.86%

CHANGE: 9.88%

CHANGE: 0.74%

CHANGE: 13.16%

CHANGE: 18.16%

(year to Mar 29)

(year to Mar 29)

(year to Mar 29)

(year to Mar 29)

(year to Mar 29)

(year to Mar 29)

52-week high: 13,289.08

52-week high: 3,095.36

52-week high: 1,414.00

52-week high: 6,103.73

52-week high: 7,600.41

52-week high: 10,207.91

52-week low: 10,404.49

52-week low: 2,298.89

52-week low: 1,074.77

52-week low: 4,791.01

52-week low: 4,965.80

52-week low: 8,135.79

Andrew Nawrocki WBJ market analyst

Major indices WIG

41,028.06 (March 29 close)

WIG20

2,271.36 (March 29 close)

29.03

28.03

27.03

26.03

23.03

22.03

21.03

20.03

19.03

16.03

15.03

14.03

13.03

29.03

28.03

27.03

26.03

23.03

22.03

21.03

20.03

19.03

16.03

15.03

2,200

14.03

2,240

40,000

13.03

40,600

12.03

2,280

09.03

41,200

08.03

2,320

07.03

41,800

06.03

2,360

05.03

42,400

02.03

2,400

12.03

52-week low: 2,089.84

09.03

Change year to March 29: 3.52%

08.03

52-week low: 36,549.47

07.03

52-week high: 2,932.62

Change year to March 29: 7.07%

06.03

Change for the week: 0.42%

05.03

52-week high: 50,371.74

02.03

Change for the week: 0.47%

43,000

Top 5 ABMSOLID PEMUG REINHOLD PBOANIOLA EDINVEST

Closing 3.92 1.69 1.40 5.00 5.68

% change (week) 52-week high 100.00 15.10 37.40 1.69 37.25 4.50 34.05 7.70 23.48 6.83

52-week low 1.49 0.86 0.90 3.10 2.32

Top 5 PBG GTC ASSECOPOL PZU POLIMEXMS

Closing 38.45 6.60 49.13 323.50 1.35

% change (week) 11.94 8.20 4.47 2.37 2.27

52-week high 188.00 21.79 55.45 398.60 3.66

52-week low 33.70 6.01 34.50 283.10 1.19

Bottom 5 RESBUD INTAKUS SADOVAYA ONE2ONE IFCAPITAL

Closing 33.30 0.48 6.63 1.70 6.60

% change (week) -42.59 -26.15 -24.05 -22.73 -21.15

52-week low 2.88 0.44 6.11 1.70 0.45

Bottom 5 KGHM CYFRPOLSAT BRE PKNORLEN PGE

Closing 139.10 13.80 282.50 37.71 19.08

% change (week) -3.94 -0.72 -0.53 -0.53 -0.16

52-week high 200.30 17.69 357.90 58.85 25.07

52-week low 102.40 11.60 203.30 30.33 15.98

52-week high 70.00 1.52 13.68 5.95 8.99

As the first quarter of 2012 comes to a close, it’s clear that indices across the globe have experienced one of their best quarters in recent years. For Poland’s major indices, the main WIG and the blue-chip WIG20, however, fears over the financial situations of Spain and Portugal could have a major impact on their movements in Q2.

The IBEX 35 in Madrid fell on both Monday and Tuesday of last week as fears mounted over the country’s ability to deal with a climbing deficit. Aside from some profit taking after a strong quarter, the Iberian peninsula is slowly catching the attention of market bears.

Nevertheless, Polish stocks began with rises last Monday, largely thanks to German business sentiment improving unexpectedly for the fifth month in a row in March. Both the WIG and

Other indices

Currency report

sWIG80

10,226.94 (March 29 close)

Change for the week: 0.73%

52-week high: 2,987.72

Change for the week: 0.51%

Change year to March 29: 13.82%

52-week low: 2,076.52

Change year to March 29: 18.86%

NewConnect

41.93 (March 29 close)

52-week low: 8,218.71

WIG-Banki

29.03

28.03

27.03

26.03

23.03

22.03

21.03

20.03

19.03

16.03

13.03

12.03

09.03

08.03

07.03

06.03

05.03

Adam Narczewski X-Trade Brokers DM SA

02.03

29.03

28.03

27.03

26.03

23.03

22.03

21.03

20.03

19.03

10,000 16.03

2,400

15.03

10,120

14.03

2,440

13.03

10,240

12.03

2,480

09.03

10,360

08.03

2,520

07.03

10,480

06.03

2,560

05.03

10,600

02.03

2,600

5,891.94 (March 29 close)

SOURCE: WSE

29.03

28.03

27.03

26.03

23.03

22.03

21.03

20.03

19.03

16.03

15.03

14.03

13.03

29.03

28.03

27.03

26.03

23.03

22.03

21.03

20.03

19.03

16.03

57,00

15.03

41.0

14.03

5,800 13.03

41.6

12.03

5,900

09.03

42.2

08.03

6,000

07.03

42.8

06.03

6,100

05.03

43.4

02.03

6,200

12.03

52-week low: 4,944.19

09.03

Change year to March 29: 6.29%

08.03

52-week low: 40.00

07.03

52-week high: 7,387.49

Change year to March 29: 1.06%

06.03

Change for the week: 0.93%

05.03

52-week high: 59.10

02.03

Change for the week: -1.22%

44.0

Polish currency retreats

52-week high: 12,932.00

15.03

2,493.00 (March 29 close)

14.03

mWIG40

WIG20 grew, by 0.77 percent and 0.9 percent respectively.

On Tuesday, stocks were little changed, with moderate gains by the WIG and WIG20 supported by reassuring comments from US Fed chairman, Ben Bernanke.

On Wednesday, sliding oil and metals prices gave investors more reason to sell Polish equities. Commodity-related shares were hit hard, with KGHM shedding over 4 percent. Adding to a poor session for KGHM was the late release on Tuesday of a report showing that 2012 will be worse for the company than last year. The WIG and WIG20 lost slightly over half a percent.

On Thursday, market bears pulled indices even lower, with the WIG losing 1.39 percent. Finally, on Friday, the WIG managed to gain 0.58 percent. ●

The z∏oty appreciated strongly at the start of last week, following the rise of the EUR/USD and the release of positive retail-sales data for Poland. Sales grew 13.7 yearon-year in February and despite the unemployment rate for the same month coming in at a five-year high of 13.5 percent, the z∏oty was buoyed, advancing to reach its weekly lows against the euro (z∏.4.13), the dollar (z∏.3.08) and the Swiss franc (z∏.3.42).

The following days brought worse news for markets. Negative data from the US and the euro zone caused the EUR/USD to dive below the $1.33 level. Emergingmarket currencies reacted,

with the major z∏oty currency pairs retreating.

On Thursday, investors ignored news that Poland’s ruling Civic Platform-Polish People’s Party coalition had agreed to reform the pension system, since most had thought an agreement would eventually be reached.

On Thursday night, markets got some relief when news spread that European debt crisis firewall funds are set to increase to around €800 billion. This was confirmed on Friday. The z∏oty regained some ground towards the end of the week, finishing Friday at z∏.4.15 against the euro and z∏.3.11 against the dollar. ●

currency rates 3.7979

3.7882 29.03

30.03

3.7515 28.03

SOURCE: NBP

3.7357

3.7858 26.03

27.03

3.8011 3.5

23.03

0.1064 30.03

0.1067

0.1066

PLN-100JPY

4.0

29.03

28.03

0.1070 27.03

0.1073 26.03

23.03

0.1071

3.4540 30.03

29.03

28.03

27.03

0.10

26.03

PLN-RUB

0.12

3.4510

3.4415

3.4236

PLN-CHF 3.4360

3.4548 3.3

23.03

4.9908 30.03

4.9710

3.6

29.03

4.9497 28.03

4.9434 27.03

26.03

4.9837 23.03

3.1234

3.1191 30.03

4.8

4.9592

PLN-GBP

5.2

29.03

3.1100 28.03

3.0939 27.03

26.03

3.1417 23.03

4.1600

4.1616 30.03

3.0

3.1348

PLN-USD

3.5

29.03

4.1503 28.03

4.1300 27.03

26.03

4.1649 23.03

4

4.1409

PLN-EUR

5

SPORTS

APRIL 2-8, 2012

www.wbj.pl

21

American football

Soccer

Eagles win Topliga opener

Japan-Brazil match could be called off

The Warsaw Eagles beat Koz∏y Poznaƒ 270 in the first game of the new season

The international friendly match between Japan and Brazil at the Municipal Stadium Wroc∏aw, could be called off.

Last week, the game was no longer on the official list of upcoming international matches on FIFA’s website, which suggested it may have already been canceled. There was, however, no official announcement from the Polish Football

COURTESY OF MARCIN WARPECHOWSKI

The Warsaw Eagles recorded a comfortable 27-0 victory over Koz∏y Poznaƒ in the Polish American Football League (PLFA) Topliga season opener, at the OSiR Bemowo stadium in Warsaw. The Eagles improved to 6-0 all-time against the Koz∏y (Goats), after beating them in the first game of the season for the second consecutive year.

After a poor start from the Eagles’ offense, the team got a lift from its defense when Rafa∏ Brzozowski picked up a Koz∏y fumble and ran 25 yards to the end zone for the game’s opening score. The Eagles then scored a further 10 points in the second quarter, including a 43-yard field goal from Warsaw’s new American special weapon, Brett Petticord, which extended their half-time lead to 17-0.

With no points scored in the third quarter, Warsaw finally put the game away early in the fourth when new Eagles’ quarterback Kevin Lynch threw his first Topliga touchdown, a 15-yard strike to Grzegorz Janiak.

Association (PZPN) regarding the status of the game.

Attracting five-time World Cup winners Brazil, and their star-studded lineup which contains the likes of Ronaldinho, Neymar and Hulk, was a major coup for the operators of the Municipal Stadium. But the move didn’t go down at all well with the PZPN, as firstly the match was organized without their permission, and secondly, the date of the game is the same as Poland’s World Cup Qualifier against Eng-

land, in Warsaw.

“They need to rethink the matter,” said PZPN chief Grzegorz Lato, adding that it was impossible that two international matches could take place at the same time in Poland.

The Municipal Stadium, which has a capacity of 42,771, opened back in September 2011. During Euro 2012 it will host three group matches: Russia-Czech Republic; GreeceCzech Republic and PolandCzech Republic.

David Ingham

Soccer

¸ukasz Piszczek makes Bundesliga team of the week

Warsaw Eagles v Koz∏y Poznaƒ Elsewhere, the Gdynia Seahawks came out on top following a thrilling match against Devils Wroc∏aw.

Sebastian Krzysztofek scored two fourth-quarter touchdowns in a 34-27 win, which saw the Seahawks become only the second team other than the Wroc∏aw Crew (now the Giants) to beat the NAC SuperFinal VI runners up, in more than two years.

In the weekend’s other game, AZS Silesia Rebels, the

The game in Wroc∏aw is due to take place on October 16

team formed from a merger of the Silesia Miners and the Ruda Âlàska Warriors, came out on top against the DomBud Kraków Tigers.

It was the Tigers who started the game brightest, scoring the opening points following a 27-yard touchdown pass from Filip MoÊcicki to Thad Gaebeline. But it was one-way traffic after that as the Rebels scored the next 40 points to start the season with a 40-6 victory.

David Ingham

Polish internationals Robert Lewandowski and Jakub B∏aszczykowski also starred Borussia Dortmund’s ¸ukasz Piszczek was selected for the Bundesliga team of the week

by German magazine Kicker, following another outstanding performance for the league leaders last week.

The Polish defender scored one and set up two in his side’s 6-1 victory over FC Köln, which

saw the defending champions extend their lead at the top of the Bundesliga to five points over rivals Bayern Munich.

The German magazine, which rates each player that makes the team of the week, classified both Mr Piszczek and Japan’s Shinji Kagawy as “world class,” after Dortmund’s demolition of the Billy Goats, as the FC Köln team is known.

Mr Piszczek’s international and club teammates, 23-year-

old striker Robert Lewandowski and current Polish captain Jakub B∏aszczykowski, also played a big part in the win. Mr Lewandowski scored one after being set up by Mr B∏aszczykowski, to take his league tally to 17 for the season.

All of this is good news for Poland’s chances at Euro 2012, with the three Dortmund players and Arsenal goalkeeper Wojciech Szcz´sny set to be Poland’s key players.

David Ingham

22

LIFESTYLE

www.wbj.pl

APRIL 2-8, 2012

Concert

Concert

Latin-American passion

Sound of the 80s

April 11, 7 pm Pasión de Buena Vista Sala Kongresowa Palace of Culture and Science Pl. Defilad 1 Warsaw The influence of the legendary Buena Vista Social Club of Cuban musicians is well known, due to the film of the same name and the numerous albums of famed members of the group, such as Ibrahim Fer-

rer, Juan de Marcos Gonzáles and Compay Segundo.

But with many of the original musicians from the collective having passed away, Pasión de Buena Vista is the next best thing for fans of this style of Latin American music.

The combination of live authentic Cuban music from artists including Pachin Inocente, and the dancing of Caridad Sosa-Varona and Yamilet

Gonzàles-Campusano, among others, provides a spectacle that is not to be missed.

According to the show’s choreographer Francisco Blanco Prada, “This show will introduce you to a new dimension of dance and singing, Pasión de Buena Vista – it’s the purest Cuban fire.”

For more information, log on to kongresowa.pl David Ingham

Art

Da Vinci masterpiece damaged by beetles The painting is housed in Poland’s National Museum in Kraków Leonardo da Vinci’s 15th-century painting “Lady with an Ermine,” has been weakened by both old age and the effect of bark beetles, Janusz Czop, a conservator from the National Museum in Kraków, told journalists last week.

The masterpiece was painted on a chestnut board and over the years bark beetles have damaged the artwork by nibbling on the wood.

However, given the age of the painting it is still in relatively good condition, accord-

ing to Mr Czop.

“The painting is 500 years old and has been subject to all the processes of aging. … Still, all things considered, it is in a very good condition, thanks to the technology that da Vinci used,” Mr Czop said, adding that the Italian artist painted on durable wood.

“Lady with an Ermine” “Lady with an Ermine” is one of only four housed in Poland’s National existing female portraits creat- Museum in Kraków, was comed by Leonardo da Vinci. The pleted around 1490. It is others are the Mona Lisa, the believed to be of Cecilia portrait of Ginevra de’ Benci Gallerani, the mistress of the and La belle ferronnière.

Duke of Milan, Ludovico David Ingham The oil painting, which is Sforza.

COURTESY OF WIKIMEDIA COMMONS

COURTESY OF SALA KONGRESOWA

Back on stage after an absence of more than 20 years, British band Red Box have returned to showcase new material, as well as two new musicians: violin player Emily Maguire and instrumentalist Derek Adams.

The electropop band, who were formed by lead singer Simon Toulson-Clarke in the late 1970s, had a number of hits in the 1980s including

“Lean on Me (AhLi-Ayo)” and “For America.” In total they have released three albums, “The Circle and the Square,” “Motive” and 2010’s “Plenty.”

And although there has been a definite change in Simon Toulson-Clarke musical direction to a more chilled-out style since Tickets for the event are they reformed, fans can still priced from z∏.99. ● expect to hear the distinctive For more information,log sound of their hits at their on to stodola.pl David Ingham upcoming concert in Warsaw.

COURTESY OF REDBOXMUSIC.NET

April 15, 7 pm Red Box Stodo∏a, ul. Batorego10 Warsaw

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 Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl

Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul.

Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl

State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.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 Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl

Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl

Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl

Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl

Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl

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

LAST WORD

APRIL 2-8, 2012

www.wbj.pl

23

Tech Eye

If you don’t have a smartphone, you should get one. According to legitimate scientific research you'll probably never hear of, people who don’t have smartphones are more likely to develop “Complete Anachronism Syndrome” than people who do have them. The have-nots are also more apt to smell like muskrats.

You know what else? There’s no good reason not to have a smartphone. You can give whatever excuse you want, from “I don’t need one” to “a smartphone killed my grandpappy” to “I enjoy smelling like a muskrat.” Whatever your logic, it’s wrong. Scientific research has proven that, too.

Here are some excellent reasons why every sane adult should have a smartphone. One: the digital camera

is extremely useful for documenting the idiocy of your fellow humans.

Two: GPS can get you to and from practically any pub in the world.

Three: there are plenty of apps to distract fidgety kids. And four: smartphones are the new frontier for innovation and awesomeness in the game development industry.

Those last two kind of go together, Techeye has learned the hard way. Our own offspring, who is fast approaching his fifth birthday, is absolutely obsessed with mobile games.

One of his new favorites is “Angry Birds Space” which, as any non-cave dweller should know, is the latest iteration of the unstoppable “Angry Birds” franchise from Rovio (rovio.com).

Released in late March, “Angry

COURTESY OF DISNEY MOBILE

COURTESY OF ROVIO

Birds Space” marks the Finnish developer’s first migration away from the original title’s gameplay. It feels familiar – the pigs still steal eggs, the birds still wreak horrible vengeance – but the game’s new take on physics is refreshing. Levels comprise null-gee environments, mini-worlds with gravity, and entertaining mixes of the two.

The game is also surprisingly useful for explaining the concepts of atmosphere, gravity and orbits to a kid.

It’s available for iOS, Android, PC and Mac. There are two versions: free (with ads) and premium (z∏.3, no ads).

“Where's my Water?”

Another popular title is “Where’s My Water?”, from Disney “Super Stickman Golf” Mobile (disney.go.com).

The game’s thread-bare plot revolves about a sewer-dwelling alligator named Swampy who wants to have a bath.

Unfortunately the water mains in his sewer appear to have been designed by MC Escher.

That’s where the player comes in – you have to create a from Noodlecake Studios (noodlepath for the water to flow to cake.com). Although it isn’t as highSwampy’s bathtub. It quickly gets profile as “Angry Birds Space” or complicated, with elaborate puzzles “Where’s My Water?”, and the graphinvolving purple poison and green ics harken back to the Age of Atari, the game is fun. Don’t expect an authentic acid. And pink duckies.

Impressively, no matter how golf experience – this is a one-club byzantine the puzzles get, the solu- game (hint: it’s not a sand wedge). Still, tion is always fairly intuitive. Even there are dozens of courses and poweryoung Whippersnapper Techeye can ups to offer variety.

“Super Stickman Golf” is availfigure many of them out, although to be honest he’s a weird kid. He’s con- able for iOS and Android. It’s free to vinced that Swampy is a smurf, for play, but you can get power-ups using “golf bux,” an in-game currency. example. An alligator smurf.

Multiplayer is also an option, “Where’s My Water?” is available for iOS and Android. There’s a free apparently, but we haven’t tried it version (with limited levels) and a because our offspring is always gleefully hitting into the water hazards. It paid version (z∏.3).

The last game we’re going to review may be time to get him a smartphone this week is “Super Stickman Golf” of his own soon. ●

Ever lost a grandpappy in a smartphone-related accident? Let us know: techeye.wbj@gmail.com

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

COURTESY OF NOODLECAKE STUDIOS

Smartphone worship and the logic behind it