WBJ #46 2012

FDI in Focus

The PM’s economic advisor explains the government’s new investment vehicle

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WWW.WBJ.PL

WBJ presents a special supplement on foreign direct investment: Investment outlook • Investment promotion • Special economic zones Biggest foreign investments • Investment of the Year Award 11-14

Interview: Jan Krzysztof Bielecki

VOLUME 18, NUMBER 46 • NOVEMBER 19-25, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Forecast: stability COURTESY OF REED MIDEM

REAL ESTATE

• UBM’s Times II • Poland at MAPIC • WFC sale finalized 16-18

Plus: • Shale gas merger • Latest mobile games • BSH takes over Zelmer • Marilyn Monroe photos • Kulczyk and Qatar Holding • Economic slowdown looms

Though the climate for foreign investment is worsening, the amount flowing in to Poland looks set to remain 11, 13 stable

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . . . .5 Law . . . . . . . . . . . . . . . . . . . . . . . . . .6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 FDI in Focus . . . . . . . . . . . . . . .11-14 The List . . . . . . . . . . . . . . . . . . . . . .15 Lokale Immobilia . . . . . . . . . . .16-19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Budget battle

Shameful display

Donald Tusk made the rounds with EU leaders last week, pushing for more cohesion funds 3

Right-wing protesters marred Poland’s Independence Day celebrations again

4

NEWS

www.wbj.pl

is how much Poland would receive in EU funds from 2014 to 2020 if European Council President Herman Van Rompuy’s proposal is accepted by EU leaders.

z∏.300 billion is how much Prime Minister Donald Tusk promised Poles he would negotiate in EU funds for the 20142020 budget period.

z∏.3.6 billion was energy firm PGE’s net profit in Q3 of this year.

3.4% was Poland’s inflation rate in October.

Israeli Prime Minister Benjamin Netanyahu

Nearly z∏.9.1 billion in profit was generated by companies listed on the Warsaw Stock Exchange’s blue-chip WIG20 – almost z∏.2 billion more than for Q3 2011, Parkiet reported. However, the firms’ results are a mixed bag when looked at individually. While the oil giants, including PKN Orlen, impressed with growing profits, copper miner KGHM noted a sharp drop in its profit. ●

“If there was only France and Poland [in the EU], we would already have a compromise.”

French President Francois Hollande speaking while on a trip to Poland last week to discuss, among other things, the ongoing EU budget negotiations.

Figures in focus Building costs Annual construction cost index for new residential buildings, selected EU27 countries in 2011 10

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1.4

3.4

3.8

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1.6

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Remi Adekoya

Quote of the Week

EU 27 rm an y Lit hu an ia

danger.”

Meanwhile Mr Hollande said he had spoken to Israeli Prime Minister Benjamin Netanyahu on the matter. “I told him that we realize that Israel must protect itself but that it should also avoid provocation, which could lead to an escalation [in violence].”

The violence between the two sides continued even during the visit of Egyptian Prime Minister Hisham Kandil to Gaza, during which Mr Netanyahu had said he was prepared to “suspend” Israel’s military offensive in the Gaza Strip. Israel later said Hamas had not honored the deal, firing rockets into several sites in southern Israel as Mr Kandil was in Gaza.

On WBJ.pl

Despite signs of a weakening economy, energy giant PGE finished Q3 with record-high results. After three quarters of 2012, it revealed a net profit of z∏.3.6 billion – 18% higher than during the same period of 2011.

From January till the end of September, PGE’s EBITDA stood at z∏.6.5 billion.

WIG20 firms on the up

among them both Israelis and Palestinians, as a result of the violence.

“It is with great anxiety that we take the escalation of the conflict in that region whilst we recognize the right of every state and nation to fight the source of real dangers such as terrorism and aggression from neighbors,” said Polish President Bronis∏aw Komorowski at a joint press conference with French President Francois Hollande during his visit to Poland last week.

Mr Komorowski added that he hoped the “violence wouldn’t increase to become the source of new conflicts.”

The Polish president also said he would observe the situation to see if “the measures used are adequate to the existing

Ge

As violence escalated last week between the state of Israel and the Palestinian Islamist organization Hamas, which controls the Gaza strip, fears grew of an imminent fullscale invasion of the enclave by the Israeli army.

Israeli trucks were spotted transporting tanks and armored personnel carriers toward Gaza and buses carrying soldiers toward the border area were also seen. The violence between the two sides escalated when Israel assassinated the Islamist group’s military commander, following up with an air assault meant to cripple Hamas’ ability to launch rockets into its territory.

As WBJ went to press, at least 27 people had died,

UK Po rtu ga l

PGE sees record earnings

€73.9 billion

an d

Florence, Barcelona and Rome are the top picks in the Old Continent according to the readers of Conde Nast Traveler.

However, in the top 10 most attractive European cities, Kraków ranks eighth and is followed by Prague and Salzburg, Puls Biznesu reported.

Tourists and readers of the magazine appreciate Kraków for its friendly atmosphere, but graded it low when it comes to shopping.

The Israel-Hamas conflict

kia

Kraków popular

Numbers in the News

Po l

The first Boeing 787 Dreamliner arrived at Warsaw’s Chopin Airport on Thursday last week.

Its arrival took far longer than expected but the world’s most modern commercial airplane has now joined the fleet of Poland’s national carrier LOT Polish Airlines, which has purchased eight such planes. It is the first airline in Europe to use them. In a short warm-up phase, the Dreamliner was due to fly around Poland, before heading to several European destinations. In mid-January it will finally take off for its first official flight to Chicago.

IN THE SPOTLIGHT

Slo va

First Dreamliner arrives

NOVEMBER 19-25, 2012

COURTESY OF WIKIMEDIA COMMONS

2

Source: Eurostat

Company index

Missing growth multipliers Log on to WBJ.pl to read an article on the perils of economic forecasting, by Ashoka Mody, a visiting professor of International Economic Policy at the Woodrow Wilson School of Public and International Affairs, Princeton University.

ADV Por Property Investment ..17 Estudio Lamela ..........................12 PKN Orlen ..............................2, 20 Agora ............................................5 Europa Capital LLP....................18 PKOBP..........................................5 Allianz Real Estate ....................18 APA Hubka ................................16

Fiat..............................................13 Gazprom ......................................7

PORR Polska..............................16 Pramerica

GetHouse Developer ..................18 Real Estate Investors ................18 AstraZeneca ..............................12 Golub & Company......................18 PwC ............................................12 AT Kearney ................................11 Golub GetHouse ........................18 Quadra FNX..................................5

Calendar

November 6-24 BELGIAN DAYS Event:

Location: Web:

This year’s edition of Belgian Days, organized by the Belgian Business Chamber, will be focused on business more than it has been in the past. It will include conferences, forums and a gala dinner.

Event:

GreenWings Offices ..................18 Bank Pekao ..............................5, 9

ING Securities..............................5

Rank Progress ..........................16 Resolution Property ..................16

Biedecki Biedecki i Partnerzy ....6 Itella............................................12 Rovio ..........................................23 BNP Paribas Real Estate ..........19 JEMS Architekci ........................18

Location: Web:

Amber Room restaurant, Warsaw WBJ.pl

San Leon Energy..........................4 Boeing ..........................................2 Jones Lang LaSalle ..................19 Bosch-Siemens Hausgeraete ....5 KBC Securities ............................5

22-23 IBA EUROPEAN REGIONAL FORUM Event:

Warsaw belgium.pl Location:

20

Aurelian Oil & Gas ......................4

INVESTMENT OF THE YEAR AWARD CELEBRATION Warsaw Business Journal will be hosting a

Web:

celebration where we will award the “Investment of the Year” as part of our Investing in Poland project. The event is held in cooperation with our chamber of commerce partners, PAIiIZ and PwC. Invitation only.

Event:

The aim of the conference is to discuss current economic and legal problems that businesses have to deal with in their own countries and in conducting cross-border investments in the CEE region.

InterContinental Hotel, Warsaw ibanet.org

BPT Asset Management A/S ....18 BZ WBK ........................................7

KGHM ......................................2, 5

Savills ........................................18 Servier ........................................12

Knight Frank ..............................16 Solomon Cordwell Buenz ..........18 KOGAS ........................................10 Tauron ..........................................5

CA Immo ....................................18 LOT Polish Airlines ......................2 Total ............................................10 CBRE ....................................17, 18 Master Management Group ......16 Tristan Capital Partners ............18 CFE Polska ................................18 Colliers International ................19

Mostostal Warszawa..................16

UBM............................................16

MTV Networks............................23 UBM Polska ..............................16

Curzon Capital Partners III ......18 NAI Estate Fellows ....................18 UBM Times ................................16

26-27 NEW EUROPE GRI 2012

Location: Web:

Join the most senior players in CEE real estate in a selection of over 20 interactive discussions covering the recent trends.

Hyatt Regency Warsaw globalrealestate.org/NewEurope2012

Cushman & Wakefield ........17, 18 Noble ..........................................10 Vector Unit..................................23 DeBenedetti Majewski SzczeÊniak Law Firm ..................4 Echo Investment ........................19

OKRE Development ..................18 Peter Nielsen & Partners ..........6 PGE ........................................2, 21

Von der Heyden Group ..............16 Warsaw Stock Exchange ..2, 5, 12

Epstein........................................18 PGNiG ......................................5, 7 X-Trade Brokers ........................20 Ernst &Young ............................11 Pittsburgh Glass Works ............12 Zelmer..........................................5

NEWS

NOVEMBER 19-25, 2012

www.wbj.pl

3

EU budget

Poland makes push for more cohesion funds PM Donald Tusk met with EU leaders last week to convince them to agree to big spending increases in the bloc’s next budget

COURTESY OF MACIEJ ÂMIAROWSK/KPRM

Polish Prime Minister Donald Tusk was on a marathon diplomatic tour last week, trying to shore up support for Poland’s position on the upcoming 2014-2020 EU budget – namely that EU cohesion funds for Poland increase significantly.

During the 2007-2013 budget period, Poland was allocated €67 billion in EU funds and it wants to make sure it receives significantly more this time around.

Mr Tusk met with German Chancellor Angela Merkel, French President Francois Hollande, EU Council President Herman Van Rompuy and European Commission head Jose Manuel Barroso all in the space of a few days last week to discuss the matter.

biggest net payer into the EU budget, has also called for budget cuts, though not ones as deep as the UK is hoping for.

After the meeting however, Mr Tusk said only that his discussion with Ms Merkel “showed that there is goodwill to reach a compromise and that there are different points of view for what that compromise should be.”

Ms Merkel said she would look for a solution that would “take everyone into consideration.” Mr Tusk was due to call UK Prime Minister David Cameron to speak on the issue last Thursday evening, but the content of their discussion was not revealed to the press.

‘Not drastically bad’ As WBJ went to press, the latest deal on the table was EU Council President Herman Van Rompuy’s proposal, which would see Poland receive €73.9

‘I’ll veto’

Mr Tusk and Ms Merkel are striving for a compromise billion – or about z∏.308.6 billion – from 2014 to 2020. That would get Mr Tusk over the z∏.300 billion mark, a figure he had promised Poles he would successfully negotiate.

Mr Van Rompuy’s proposal cuts the European Commission’s proposed €1 trillion budget – one that Britain had insisted

was too big – by about €80 billion. Britain and several other EU members have been pushing for a cut of €100 billion.

Mr Van Rompuy’s proposal makes significant cuts to agricultural spending, something that has drawn significant opposition from France. On the other hand, Nordic coun-

tries such as Sweden want the cuts to go much further.

Describing Mr Van Rompuy’s proposal, Mr Tusk said it was not “dramatically bad for Poland.”

Not good enough However, it remains unclear if the countries fighting for

deeper cuts, especially Britain, will accept Mr Van Rompuy’s proposal. Last Thursday, Donald Tusk flew to Berlin hoping to convince German Chancellor Angela Merkel, arguably the most important figure in the negotiation process, not to support drastic cuts to the budget. Germany, the EU’s

Mr Cameron has vowed to veto the EU budget if it is not in the UK’s interests. London wants to freeze the budget, allowing only for inflation.

There will be a summit this week to decide the final details. If no agreement is reached by the end of next year, the 2013 budget will be rolled into 2014 with a 2 percent rise to account for inflation.

Remi Adekoya

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NEWS

www.wbj.pl

NOVEMBER 19-25, 2012

Civil disorder

Violent scenes mar Independence Day marches Riot police confronted rightwing nationalists on Sunday, November 11, during the biggest of four Independence Day marches in central Warsaw.

Masked rioters threw firecrackers and lumps of concrete at police, with police retaliating by beating marchers with truncheons and firing rubber bullets and tear gas, forcing them to disperse.

A total of 176 people were arrested following the clashes while several officers sustained injuries that required hospital treatment.

Crowds in the tens of thousands took part in the nationalists’ march, but a small group of extremists was enough to start a riot on the streets of Warsaw.

The marchers were channeled along a pre-planned route designed to avoid them clashing with marchers representing groups from across Poland’s political spectrum.

When they tried to change direction, police blocked them and the stand-off began. How-

AFP/FOTOLINK

Several police officers were hospitalized and 176 rioters arrested

Right-wing rioters clashed with police in central Warsaw on November 11 ever, they were eventually permitted to carry on along the alternative route.

At the end of their march, one of their leaders told reporters that they will “bring down the Republic,” adding that they will seek to organize a “conscious” nation. There have even been suggestions in the media that they could be looking to establish a political party situated to the right of the conservative Law and Justice party.

Earlier, some 10,000 Poles took part in a march led by the country’s president, Bronis∏aw Komorowski.

The other two marches – held by socialists and antifascists – were significantly smaller and relatively calm.

Independence Day is observed on November 11 to commemorate the date when Poland became an independent state in 1918, following the end of World War I. Poland had previously

been under the rule of foreign powers for more than 120 years.

Traditionally, the Independence Day march organized by right-wingers has been the most violent and chaotic.

Following some of the worst street violence seen in Poland in years, Polish prosecutors last year filed criminal charges against 46 people suspected of attacking police during the Independence Day marches in Warsaw.

Gareth Price

Foreign shale giants announce merger worth $98 million San Leon Energy bought Aurelian Oil & Gas last week to create the biggest foreign holder of shale exploration licenses in Poland.

Investors received news of the $98 million all-share transaction badly, sending San Leon’s share price tumbling by up to 16.5 percent last Monday.

The offer, which values Aurelian 13.3 percent higher than its market price on the business day before the offer was announced, will give San Leon shareholders 66 percent of the company with Aurelian shareholders owning the rest.

The merger is conditional on, among other things, certain approvals by Aurelian shareholders, although Aurelian’s largest shareholders – with a combined 47 percent stake in the company – have already given their assurances.

San Leon expects the merger to be completed in early 2013.

The boards of San Leon and Aurelian believe the enlarged group offers short-term cash flow potential in Poland, San Leon wrote in a statement.

Oisin Fanning, executive chairman of San Leon, said,

“The combination of cash resources and the Polish asset base alone creates an obvious and exciting opportunity to realize substantial growth. Both management teams have built up a tremendous amount of experience and we can now employ that to pursue a best-ofportfolio near term value creation strategy.”

The news will encourage energy officials in the Polish government, which is banking heavily on the country’s shale gas potential in the hopes it will allow Poland to reduce its reliance on Russian gas supplies.

“It’s a vote of confidence in the market in that some of the key existing non-Polish players will remain and combine their strengths to move forward,” said C. David DeBenedetti, a partner at the DeBenedetti Majewski SzczeÊniak Law Firm who specializes in shale gas issues.

“The merger creates the potential for greater economies of scale for the two businesses and will hopefully make it easier for them to drill as their licenses require,” he added.

Gareth Price

BUSINESS

NOVEMBER 19-25, 2012

www.wbj.pl

Banking

Acquisitions

Germany’s BSH launches Bank Pekao not bid to take over Zelmer set to overtake

PKO BP just yet

It has announced a call for shares that values the Polish appliance maker at z∏.608 million

Zelmer makes home appliances investors, which mainly include retirement funds, will react, is unclear as of now.

However, Zelmer seems confident that the takeover is a done deal.

“We can announce with satisfaction that the process, which has lasted for the past several weeks, is now successfully completed. The selected investor offers an attractive price per share for current shareholders and will support us in [our] further development.

sition will strengthen BSH’s presence in Central and Eastern European countries.

Zelmer’s brand name enjoys a high recognition among small domestic appliances and is expected to further accelerate the development of our Consumer Products division.”

The takeover will take place if the German company manages to purchase at least 75 percent of all shares. The private equity fund Enterprise Investors, which owns close to 49 percent of Zelmer’s shares, will sell its stake. How other

GP

The copper miner is eying a concession in Kazakhstan and accelerating work at its mine in Chile to increase production Polish copper giant KGHM saw its unconsolidated net profit fall 65 percent year-onyear in the third quarter of 2012 as a new tax on copper mining weighed heavily on its bottom line.

The company recorded an unconsolidated net profit of z∏.1.12 billion, a result slightly above the market consensus.

The copper miner is eying an acquisition in Kazakhstan to help it hit its long-term target of 700,000 metric tons of annual copper output by 2018, Reuters reported.

“We are preparing to place an offer for a concession in Kazakhstan,” chief executive Herbert Wirth told the TVN CNBC channel. “I think we will place an offer before the end of this year.”

KGHM is also ramping up work at its largest overseas mine – the Sierra Gorda con-

Tauron sees strong Q3 Energy group Tauron’s revenues amounted to z∏.18.2 billion for the first three quarters of 2012 and were 20% higher than for the same period last year. In Q3 alone the company recorded revenues of z∏.5.9 billion, 22% more than in 2011.

Tauron also posted a profit of z∏.420 million in Q3, compared to z∏.290 million a year earlier. Its operational profit came up to z∏.589.5 million.

Agora in the red Agora, the publisher of Gazeta Wyborcza, closed the third quarter of 2012 deep in the red. However, its performance turned out to be slightly better than expected by analysts.

The group had revenues of z∏.264.6 million, while its net loss came in at z∏.8.3 million, compared to a net profit of z∏.5.5 million a year ago.

Agora’s results were significantly worse mainly due to the recent downturn in the advertising market.

PGNiG finds shale gas deposit Poland’s gas monopoly PGNiG has succeeded in discovering yet another deposit of shale gas at the Wejherowo concession. The presence of the resource was confirmed at the Opalino borehole, at a depth of 3,000 meters.

This is not the target depth, so drilling will continue once all the appropriate surveys are conducted.

Car dealers cutting employment COURTESY OF KGHM

holds a stake in consortia extracting oil in Nigeria, gas in Tanzania as well as minerals in Brunei, the Republic of Congo, Ukraine and Latin America.

WBJ contacted Kulczyk Investments, the Polish billionaire’s investment vehicle, but a representative declined to confirm the report. However, Marta Wysocka, deputy director of corporate communications for the firm, also declined to deny the report outright when pressed to do so. Mr Kulczyk is said to be worth roughly z∏.9.7 billion and has topped the list of richest Poles for most of the last RA decade.

Remi Adekoya

KGHM’s profit slumps on copper tax COURTESY OF WIKIMEDIA COMMONS

Mr Kulczyk is worth around z∏.9.7 billion

Marta Czajkowska-Ba∏dyga, analyst at KBC Securities, said PKO BP isn’t about to lose its market leading position just yet.

“The fact that Bank Pekao had a very good quarter is largely due to profits made from bond sales. They can beat out PKO BP in a quarter or two but that doesn’t mean the market will immediately value it more than PKO BP,” she said.

She added, however, that she could not rule out that Bank Pekao will one day become Poland’s top lender.

Piotr Palenik, analyst at ING Securities, also doesn’t expect Bank Pekao to overtake PKO BP in the “short to medium term.”

“They might do better in some selected products, for example they are currently bigger in mortgage lending and mutual funds but when it comes to value of assets they are way behind PKO BP. I think they will also be behind in earnings for some time to come,” said Mr Palenik.

Copper mining

Kulczyk in $700 mln venture with Qatar sovereign fund: report

A group of investors led by Polish investor Jan Kulczyk and Qatar’s sovereign wealth fund are set to invest $700 million in a firm which is to undertake mineral exploration and extraction in Africa and South America, according to the Financial Times.

Mr Kulczyk and Qatar Holding are reportedly expected to invest $250 million apiece, while $100 million each is to come from BTG Pactual, a Brazilian investment bank, and Och-Ziff, an investment fund.

Jan Kulczyk has been investing heavily in energy projects in the past few years. He

Bank Pekao reported a record z∏.798 million net profit in the third quarter of this year, beating market expectations by up to 14 percent. The figure reflected 4 percent year-onyear growth and a 13 percent improvement on the previous quarter.

This means that after three quarters of 2012, the bank has a net profit of z∏.2.2 billion, 4 percent higher than in the same period of the previous year. Polish media were quick to declare that the result brings the bank closer to its stated aim of becoming the number-one bank in Poland, a position currently held by state-controlled PKO Bank Polski.

PKO BP earned a net profit of z∏.912 million in Q3, down from z∏.949 million in the previous quarter and down from z∏.1 billion a year earlier. But

SHUTTERSTOCK

Bosch-Siemens Hausgeraete’s z∏.608 million call for all of Zelmer’s shares electrified the stock market last Wednesday.

The Polish appliance producer’s shares soared by almost 30 percent, to around z∏.40, on news of the offer.

Zelmer, which announced it was looking for a new strategic investor earlier this year, would disappear from the Warsaw Stock Exchange if the call for shares is successful.

“After a purchase of 100 percent of shares, it won’t make any sense to keep the company on the stock market.

The price that we have offered is attractive and we don’t intend on changing it,” said Konrad Pokutycki, president of the board at Bosch-Siemens BSH Sprz´t Gospdarstwa Domowego.

Ralf Fuchs, executive vice president Product division Consumer Products Global, BSH Group, said, “This acqui-

A good Q3 set the media aflutter, but experts say it will remain Poland’s no. 2 bank

5

KGHM hopes to produce 700,000 tons of copper a year by 2018 cession in Chile.

Earlier this year KGHM bought a controlling stake in Canadian rival Quadra FNX for around z∏.9.5 billion, in a transaction that included the purchase of a controlling stake in the Sierra Gorda mine.

In the third quarter of 2012, the KGHM Group continued realization of projects in its mining portfolio, including at Sierra Gorda – its largest project at the pre-oper-

ational stage.

The Sierra Gorda project comprises the construction of an open-pit mine on one of the largest new deposits of copper and molybdenum in the world.

The start of production at Sierra Gorda is planned for 2014. Planned annual production is approximately 220,000 metric tons of copper, 11,000 tons of molybdenum and two tons of gold for over 20 years.

Gareth Price

Car dealers in Poland currently employ a total of 40,000 people, according to current estimates from the automotive sector. But a report prepared by the Automotive Dealers Association (ZDS) shows that during the past 12 months employment in the sector has decreased by about 5 percent, or around 2,000 jobs. The future outlook is not too optimistic either – experts estimate that as many as 3,800 car dealer employees may lose their jobs in the coming year. ●

6

LAW

www.wbj.pl

NOVEMBER 19-25, 2012

Legal Forum

An additional day off for Polish employees Katarzyna Zwierz-Wilkocka Attorney at Biedecki Biedecki i Partnerzy All companies doing business in Poland should review their workplace regulations and make appropriate amendments to introduce a regulation regarding an extra day off. This results from a recent ruling issued on October 2, 2012 by the Constitutional Tribunal which states that rules for settling statutory holidays which fall on a day off from work other than Sunday infringe the Constitution. As a consequence of the above-mentioned ruling, employers and economists have already begun to estimate potential losses that the additional day off may bring to the economy and businesses.

What do the amendments involve?

The above-mentioned judgment is a result of the revision of Labor Code rules regarding statutory holidays. Pursuant to rules in force prior to the Constitutional Tribunal’s ruling, if a statutory holiday fell on

Saturday or on any other day off for a particular employee, excluding Sundays, employees were not entitled to receive an additional day off.

This situation arose from Article 130 § 21 of the Labor Code which was introduced in January 2011, on the occasion of a stormy discussion on whether or not to establish Epiphany as a day off from work. This provision has introduced an exception to the general rule stating that each public holiday which falls on a nonworking day other than Sunday, reduces the amount of working time by eight hours. Such a rule is connected with the principle of a five-day working week applying in Poland, which means that apart from Sunday, employers must guarantee their employees an additional non-working day within a week (not necessarily Saturday).

Shortly after being introduced, Article 130 § 21 was challenged by Trade Union Organization NSZZ

SolidarnoÊç, as being contrary to the constitutional principle of equality and prohibition of discrimination of employees. The Tribunal partially agreed with the arguments of the trade union.

What does the judgment mean in practice?

The discussed judgment of the Constitutional Tribunal means a return to rules which applied before 2011 in the scope of granting an additional day off in exchange for a public holiday that falls on a non-working day. Consequently, employees have regained the entitlement to an additional day off, when a statutory holiday falls on Saturday or on any other day off for a particular employee (excluding Sundays). The day off should be used until the end of a particular settlement period.

For the majority of employees in Poland (for whom Saturday is a day off in an average five-day working

week), this change will be of limited importance in 2012 and 2013, because no statutory holiday falls on a Saturday during these years.

For these employees the “new-old” rules will come in to effect for the first time in 2014, when Constitution Day and All Saints’ Day both fall on Saturdays. Then, employees performing work from Monday to Friday will be entitled to one day off at another time. A similar situation will occur in 2015, when the Assumption of the Virgin (on August 15) and Christmas Day will fall on Saturdays. However, the new judgment of the Constitutional Tribunal may be of particular significance to employees who work on Saturdays and for whom every other day from Monday and Friday is a non-working day.

The Constitutional Tribunal did not decide to postpone the voiding of the challenged provision.

This means that the provision ceased to be binding upon its pub-

lication in the Journal of Laws of the Republic of Poland, which was on October 8 2012.

What are the consequences and potential risks for employers?

Employers should immediately review their workplace regulations and working time schedules for the last three months of this year and make appropriate amendments to bring them into legal compliance. If a company’s workplace regulations state that employees are not entitled to an additional day off when a statutory holiday falls on Saturday (or on any other day off for a particular employee, excluding Sundays), this provision will be deemed to be legally invalid and should be amended. Otherwise, the employer may risk claims by employees for overtime work, as well as for compensation due to unequal treatment in employment. ●

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

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

Legal News Contact: Dorota Zab∏ocka dz@pnplaw.pl

Double advance for income tax to be paid by entrepreneurs in January

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Until last year entrepreneurs had to pay a double advance for income tax – for November and December – until December 20 and this double advance has always amounted to double the advance for November, irrespective of the income actually generated in December. Pursuant to the provisions which are currently in force, entrepreneurs may pay an advance for December until January 20 the following year or may submit an annual tax return by January 20 and settle the annual tax within the same deadline.

The changes in the manner of payment of advances were resolved in 2008 and were to become binding from the beginning of 2010. However, their coming into force was postponed by two years. The change to the provisions will minimize the practice of downsizing revenues and generating simulated costs in November.

Development of telecommunication infrastructure – amendment On November 6, 2012, President Bronis∏aw Komorowski signed an amendment to the law concerning the support for the development of telecommunica-

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

tion services and networks adopted in 2010, and to some other acts. The changes will make investments connected with the construction of telecommunication infrastructure easier and will facilitate the procedure of issuing decisions on situating broadband networks locally. The amendment also introduces new rules concerning the performance by road management bodies of locating technological duct systems (places for optical fiber cables) in case of the reorganization or renovation of roads.

The law was to ensure access to telecommunication services, especially broadband internet, among others by working out legal and economical terms of construction of the new generation network. Some problems occurred while the law was in force, such as problems relating to situating a local broadband network, the possibility of using the existing telecommunication infrastructure or the rules connected with fulfillment of the obligation of locating by road managements of technological duct systems in case of road reorganization.

The amended law will come into force 30 days after its announcement, except for the provisions concerning stock-taking of technological infrastructure which will

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Moody’s positive about Gazprom deal

Economic indicators

Poland faces broad-based slowdown in 2013 This could put inflation “well below” target in 2014 Poland’s economy, now suffering a “harsh downturn,” could slow to a mere 1.5 percent growth rate in 2013 before rebounding in 2014 in a slowdown sufficient to set inflation at the 2.5 percent target within two quarters on its way to a mere 1.5 percent in 2014, central bank researchers said in a November inflation projection report.

Poland, Europe’s post-crisis growth leader, could escape enduring euro-zone problems only so long. Protection provided by such factors as EU funds and related public investments, lingering demand from Germany, a Q4 2011 z∏oty weakening and low real interest rates in the recent period is all “wearing away,” researchers said.

The outlook, laid out in a key set of projections published once every four months for the benefit of central bank rate setters, has darkened since researchers last stirred the tea leaves in July.

The good news is hidden in the very fine print: NBP projections are built on the assumption – now entirely unlikely – that official interest rates will not change for the forecast horizon. Polish rate setters have already responded with a 25 bps cut announced earlier this month.

Worsening forecasts The darkening of views at the NBP was motivated primarily by worsening forecasts for growth abroad and a weaker than expected Q2 Polish GDP reading, researchers said. All in all, it took 0.2 pps from average inflation forecasts and 0.6 pps on average from GDP forecasts over the projection’s horizon.

Nearly the full slate of factors will work to slow the economy in 2013 and only net exports should prove supportive, researchers say.

Negatives begin abroad: with falling foreign growth rates and lowered EU fund absorption, reducing the public investments that supported in 2012.

But problems in 2013 have a home-grown character as well, in part as Poland’s ongoing fiscal tightening will bear a price and as the private sector simply succumbs to the downturn.

Household consumption growth will remain positive, although subdued near histor-

ical lows, as wage growth remains low and households can no longer draw down savings.

The investment side of the economy will fare no better, with a 3.4 percent reduction in 2013 and still slipping fractionally in 2014. Companies will react to the slowdown with reduced investments; public investments fall on as Poland’s tightens its own purse and EU fund flows hiccup between funding perspectives; housing is under pressure from all sides.

The 2014 rebound, albeit modest to a 2.3 percent growth rate, will be led by a rebound in consumption and private investments “although growth in these categories will continue below the long-term average,” researchers say.

As GDP growth falls below a potential growth rate estimated at a mere 3 percent, the output gap, which has been negative since Q2 2012, will continue to widen throughout

Worsening outlook Macroeconomic forecasts in November & July projections, for 2013 (in % y/y) Indicator

Nov. 2012 2.5

2.7

Net inflation

1.7

2.2

GDP

1.5

2.1

Domestic demand

0.2

1.2

Private consumption

1.3

1.8

Exports

3.2

3.1

Imports

0.3

1.0 Source: National Bank of Poland

That confirms the likelihood that the RPP will come through on another rate cut at its meeting in December. The council cut the National Bank of Poland’s main interest rate by 25 basis points to 4.5 percent in November, amidst calls from many economists to do so. In May the council raised

Disinflation worries The upshot for Poland’s rate setting Monetary Policy Council: disinflation could arrive in a rush.

In principle, that should be welcome for a rate council that has watched headline inflation sit stubbornly above the upper end of their target range without interruption since late 2010.

But the pace of disinflation could yet worry. Inflation, last measured at 3.8 percent, should hit the central target of 2.5 percent by Q2 2013 on its way to 1.5 percent, the lower threshold of the tolerance range, in 2014.

The decline in core inflation should be even more dramatic: to 1.7 percent in 2013 and 0.9 percent in 2014 on the 1-2-3 punch of low economic growth, stable FX rates and moderation in unit labor cost growth, researchers said.

Beyond those core prices, food price inflation should “remain relatively high” on supply factors, energy price inflation will remain high short-term before succumbing to falling energy commodity prices.

Researchers put the balance of risks to their forecast as roughly balanced over the projection horizon. The main source of risk to the forecast, Europe’s performance vis-a-vis the current forecast, is a coin toss, researchers say.

Word of the increasingly bearish GDP and inflation forecast motivated the rate council to open a long-expected easing cycle with a 25 bps cut, announced in early November.

The cut puts the reference rate at 4.5 percent, back where it was prior to a rate hike in May. The reference rate is still a full percentage point above the post-crisis low of 3.5 percent, in place from mid-2009 to early 2011.

The council accentuated its move with new dovish tones in its collegiate rhetoric.

Throughout the policy statement, the council raised alarms about signs of “considerable” economic slowdown. The council’s own assessment of growth components and drivers lacked even a single positive element.

Glenn Tyrpa, PAP Market Insider

The deal that Polish gas monopolist PGNiG reached with Russia’s Gazprom for a cut in gas-delivery prices to Poland was seen as a positive development by ratings agency Moody’s.

The agency released a statement saying that the agreement – which will reduce the price of gas paid by PGNiG by over 10% – had a positive effect on the Polish firm’s credit rating. The deal will boost the company’s EBITDA by z∏.2.5 billion to z∏.3 billion, increasing PGNiG’s cash flow in 2012 and 2013, Moody’s said.

Unemployment to inch up?

The unemployment rate in Poland crept up by 0.1 percent point in October compared to September, to reach 12.5%, according to estimates prepared by the Ministry of Labor.

Roughly two million poles are now without a job. A higher level of unemployment can be expected in November, said Deputy Minister of Labor Jacek M´cina. ●

July 2012

CPI

Inflation drops to within RPP’s target range Poland’s consumer price index (CPI) inflation rate fell to 3.4 percent in October from 3.8 percent in September, meeting analysts’ expectations and continuing a downward trend that started in July. Inflation is now within the Monetary Policy Council’s (RPP) target range of 1.5 percent to 3.5 percent.

the projection horizon.

7

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interest rates, making Poland the only EU country to do so this year.

“As one could have expected, data on October’s CPI are clearly dovish and show that upward pressure on price growth is weak,” said analysts from BZ WBK in an e-mailed AK statement.

Trade volume down, but current account deficit still rises Poland’s volume of trade in September came in lower than expected.

Exports reached €12.58 billion (versus a market expectation of €12.77 billion), marking a decline of 0.3 percent year-on year. Imports, meanwhile, came to €12.49 billion, against a market forecast of €12.50 billion, a drop of 3.0

percent measured annually.

Poland ended up with a trade surplus of some €84 million – the first since 2005.

The balance of services surprised on the negative side, coming to a surplus of just €338 million (over €200 million less than in August). The balance of incomes proved higher than expected, and

came in at €1.54 billion. The balance of current transfers was negative, at -€17 million, due to a small influx of funds from the European Union.

As a result, Poland’s current account deficit increased to from €609 million in August to €1.137 billion despite the trade-balance surplus.

AK

www.bilans.eu BILANS Accounting and Consulting Company Ltd., 02-729 Warszawa, 195 Rolna st., tel. (+ 48) 22 212 86 27-29, mobile: (+48) 502 057 107 e-mail: Jacek@bilans.eu

8

INTERVIEW

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PiS losing support The recent turmoil following an erroneous article in Rzeczpospolita that said traces of explosives were found on the wreckage of the Tupolev that crashed in Smolensk, killing President Lech Kaczyƒski and 95 others, has not helped the opposition Law and Justice (PiS) party, which loudly supported the report.

According to TNS Polska data, support for PiS has slumped to 30%, compared to 39% in in a poll conducted before the scandal broke.

Gloomy times for businesses Although business owners are not planning layoffs or cuts in investments, they will face a decrease in sales, Puls Biznesu reported.

Entrepreneurs’ moods have not been this bad for two years. The Bibby MSP Index fell to 41 points in October – 13 points less compared to the last analysis, in April.

SMEs believe that the next half year will bring more difficulty. ●

NOVEMBER 19-25, 2012

The economy

Bielecki touts growth through investment Jan Krzysztof Bielecki, chairman of the Economic Council in the Chancellery of the Prime Minister, talks with WBJ about the government’s investment program, its economic policy and the crisis in the European Union Ewa Boniecka: The Polish economy is slowing down, with the European Commission expecting the country’s GDP to grow 1.8 percent next year, while the government predicts 2.2 percent. How will the investment program announced recently by Prime Minister Donald Tusk help boost the economy?

Jan Krzysztof Bielecki: We have been living through the worst financial and economic crisis in 70 years, that is, since the Great Depression. Since 2008, Europe and the world have been dealing with a crisis of such magnitude that it adversely affects growth in the entire global economy. Any discussion concerning remedies and prescriptions for

fighting the crisis must start with an acceptance of this basic truth.

Today everyone around the world is looking for ways to maintain economic growth while introducing necessary austerity measures. Also, in Poland, we are looking for solutions to help sustain what I call the Polish specialty – the ability to stay on a path of economic growth in the past 21 years. There is no question that this is our priority. The “Polish Investments” program is part of this drive. The idea is to support infrastructure investment using existing state assets to generate new sources of financing. The mechanism through which this leveraging can be achieved was described

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in the recommendations of the European Financial Congress, organized in Gdaƒsk in May, and this idea was adopted by the government, which allowed Prime Minister Tusk to announce the plan in a recent speech in parliament.

Some economists, among them Leszek Balcerowicz, are voicing reservations about the direction of the government’s economic policy, claiming that it is a move towards greater intervention of the state in economy and a retreat from liberal to Keynesian economics. How do you react to this criticism?

You cannot call this a dramatic turn in Poland’s economic policy. Let me remind everyone that when Mr Balcerowicz was finance minister, he was instrumental in the creation of the Polish Development Bank (PBR) in order to facilitate investment in Poland at the start of our transformation.

We are talking about a similar idea. In fact, Polish Investments is a way of decreasing the state’s role in the economy, rather than increasing it.

The program will be based on market principles and sound financial management, characteristic of the private sector. For the time being, almost all the main infrastructure investments have been directly financed by the state budget. In contrast, Polish Investments, by definition, will partner with the private sector and invest only in profitable projects. So at the end of the day there will be less, not more, state.

Do you believe that the structure of the investment vehicle – including the appointment of the board of directors and chairman – will be put in place this year, and that the selection process will remain free from political influence?

It was clearly indicated by Deputy Treasury Minister Pawe∏ Tamborski that the ministry intends to set up this fund in line with the best industry standards and practices. It should be relatively easy to find the right person to be in charge because the job requires specific experience and qualities.

By definition it must be someone senior with years of experience in corporate and investment banking. Otherwise it will be impossible to achieve the goal of establishing a wellfunctioning vehicle for sup-

porting key investments in the crucial years of 2013 and 2014, and attracting private capital to participate. The fund must have credibility and conduct its operations based on private sector principles.

Who will decide which investments are to be financed by the Polish Investments scheme?

It will be decided by the board of directors, but the govern-

duction of the government’s economic program?

The best way to improve the standard of living of the Polish people is to maintain economic growth. Economic growth is generated by investment, so the program is one of many measures used by the government to sustain Poland on the growth path. Through investment we hope to create jobs and raise the quality of life for Poles.

“Many countries around the world would be thrilled with a projected growth rate of 2 percent for next year” ment will point to priorities in certain strategic areas, where investments are most needed.

In this time of crisis, countries in the European Union and the US are spending large amounts of budget money to help their respective economies. Is the Polish Investments program simply following this trend?

We are not pouring taxpayers’ money into Polish Investments because we must remain fiscally responsible. Instead, we want to leverage state assets which are already in the hands of the state. They will not be sold off in the foreseeable future but we can use them as capital to multiply our financing firepower, in line with common market practices.

Leveraging is a standard mechanism deployed by private and public financial institutions around the world. So it is not a “new trend,” but a program using proven methods of stimulating investment as a key measure to support growth during this crisis.

How do you look at the political effects of the Polish Investments program? Will it increase support for the government and the ruling Civic Platform party?

My answer is that the program will help the Polish economy weather the effects of the worst crisis since the Great Depression. Growth is essential to the wellbeing of the Polish people.

How and when will the average Pole, who worries about keeping his job, paying the rent and meeting the growing expenses of many commodities, benefit from the intro-

Some economic analysts predict that Poland will experience a recession next year.

What is your view?

I accept that there is a variety of views and opinions, but I am pretty confident that the Polish economy will maintain its unprecedented path of development of the last 20 years and stay in the black in the years to come. Also, the latest European Commission forecasts, pointing to a slowdown and recession in many places in Europe, show that Poland will continue growing, even if at a slower pace. Many countries around the world would be thrilled with a projected growth rate of 2 percent for next year.

In a recent policy speech Prime Minister Tusk said that he is not concerned with romantic visions, but instead has a concrete, matter-of-fact approach towards Poland’s development. Is it not time for grander visions?

I think that Poland has a very clear vision regarding its future and the future of Europe. During the last 20 years we have proven that we manage to reach our goals, which is, in the end, the most important thing in politics. We have established a more confident and prosperous Poland, secure and well-integrated in European and transatlantic structures. The next objective is to further improve the standard of living of the Polish people and create solid foundations for the future.

Do you hope that the EU budget for 2014-2020, which some members want to cut drastically, will finally be

INTERVIEW

COURTESY OF G.ROGI¡SKI-CIR

NOVEMBER 19-25, 2012

Mr Bielecki believes it would be “difficult or naive” to expect a much more generous budget for 2014-2020 than the one currently in place accepted and that we will receive the expected amount of money?

In this time of unprecedented crisis, it would be difficult or naive to expect that the budget for 2014-2020 will be much more generous than the previous one. In a time of austerity it will be good to have a budget at the same level as the previous one. In any case, it will deliver another enormous stimulus to Poland’s convergence with the rest of the EU. Will the EU’s cohesion policy, which is so important for Poland, be saved in the face of such stubborn opposition from some net payers?

During an economic crisis, it is clear for everybody that the negotiation process is not sim-

ple and could be protracted.

But anyway I think that we can expect from the next budget over €70 billion in structural and cohesion funds.

The European Union is dividing between those in the euro zone and those outside. The Polish government signed a fiscal pact integrating members of the euro zone and expects to ratify it in the Polish parliament. How do you evaluate this move?

The government’s position is that even though we are not in the euro zone, the fiscal pact is conducive to sustaining Poland’s development. The prime minister told parliament that the government will soon send this for ratification and the response from some oppo-

sition parties showed that it is likely to gain broad support.

When is Poland going to accept the euro as its currency, thus allowing it to join the group of key decision makers in the EU? During the same debate, this matter was made clear by Prime Minister Tusk and Finance Minister Jacek Rostowski.

Poland will meet the criteria in 2013 but our membership must be timed to have a positive impact on our economy. And the euro zone itself must in the meantime resolve its problems.

By joining the fiscal pact, we serve our economy well and at the same time demonstrate our commitment to the sound financial management of the euro zone in the future. ●

Jan Krzysztof Bielecki Mr Bielecki served as an economic expert to the Solidarity trade union from the end of 1980. During Marshal Law he was involved in underground union activity.

In December 1990, he was appointed prime minister of Poland but after elections in October 1991, he resigned from office, with his resignation being accepted by the Sejm in December 1991. He then served as minister for European integration and foreign assis-

tance in Hanna Suchocka’s government.

From December 1993 to September 2003, he represented Poland in the European Bank for Reconstruction and Development, before becoming president of Bank Pekao’s management board and company CEO. Since March 2010 Mr Bielecki has been chairman of the Economic Council, which advises Prime Minister Donald Tusk.

Source: premier.gov.pl

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9

10

NOVEMBER 19-25, 2012

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Advertorial feature

Investments – Business – Services in Cyprus Discover a new business destination at the crossroads of the EU, Middle East and North Africa Cyprus’ modern, service-based economy continues to attract business as financial and corporate services draw foreign investors to the island. Polish business circles can find in Cyprus a safe and reliable investment environment for realization of their investment plans.

Current performance Cyprus remains an attractive investment destination by offering a unique basket of advantages for conducting business in the European and Middle East region. In the recently published World Bank “Doing Business 2012” report, Cyprus ranked 40th out of 183 countries. In another ranking for the competitiveness, Cyprus is ranked 47 out of 142 countries.

However, like all countries in the eurozone, Cyprus faces a challenging time in 2012. In June 2012 the Cypriot government requested assistance from the European Financial Stability Facility (EFSF), the EU’s financial support mechanism, primarily to support the banking sector, which needed recapitalisation after the 75% write-off of Greek government debt earlier in the year. Currently, the Cypriot authorities are negotiating with the Troika (the International Monetary Fund, European Central Bank and European Comission) about the amount of the loan and its conditions.

Why Cyprus?

Foreign investors choose Cyprus because of its favourable tax system, (with a uniform corporate rate of 10% – the lowest in the EU), advanced business infrastructure, stable socio-economic environment, and its highly qualified labor force. They also benefit from a business environment that is favourable to international trade and a regulatory environment that is transparent and welcoming towards foreign investments.

Attracted by a wide network of double taxation treaties, a state-of-the-art telecommunications and world-class business services, the island hosts over 260,000 registered companies from Cyprus and across the world. For companies and individuals looking for the ideal location from which to structure their investments in Russia, the EU, the Middle East, North Africa and beyond, Cyprus offers specific benefits that have already attracted thousands of investors. Official statistics show that international business structures in Cyprus are already generating more than €857 million a year.

Holding companies Cyprus is an ideal location for establishing holding, trading and investment companies.

Such companies enjoy numerous benefits, including a low tax rate, repatriation provisions (which allow payment of dividends), interest and royalties without payment of withholding tax, the exemption from tax of

trading gains and capital gains made by Cypriot holding companies from the sale of shares in a foreign subsidiary, and many others.

plant which would utilize natural gas as raw material. It is expected that all these undertakings will create about 4.000 jobs.

Energy – the prospects for the economy after discovery of natural gas in Cypriot waters

Tourism

The breakthrough for Cyprus came in December 2011 when American company Noble Energy announced that it had discovered natural gas in Cyprus’ Exclusive Economic Zone Block 12 (the “Aphrodite” gas field), 180 kilometers to the south of the island. Aphrodite’s reserves are estimated at around 7 trillion cubic feet (198 billion cubic meters) – enough to meet Cyprus’ domestic gas demand for around 100 years. Noble will carry out more appraisal drilling in early 2013. The company estimates that production will begin 38 months after a final investment decision has been taken.

The success in Block 12 caught the attention of energy companies across the world and created huge interest in Cyprus’ second licensing round, in which 33 bids from 15 companies/consortia were submitted. On the 30th of October the Council of Ministers decided to grant exploration licenses for four more blocks of the Cypriot EEZ: two for French company Total (with Russian participation in one block) and two for Italian company Eni with participation of Korean KOGAS. This discovery opens new possibilities and prospects for Cyprus. The use of its own energy supply will not only provide local industry with an economic boost, it will also stimulate rapid technological development within the manufacturing sector. The energy sector appears to be paramount for attracting foreign investment, especially as the Republic of Cyprus plans to build a plant for the production of Liquefied Natural Gas (LNG) and a pipeline for supply of gas to Cyprus. Discussions are also ongoing about a potential manufacturing

After slow but steady growth in recent years, 2011 saw a phenomenal 10% increase in the number of visitors to the island. This trend seems, as statistics show, to have continued in 2012. For the period January-September 2012, the number of tourists that visited Cyprus was 2,064,118, which is 4.6% more than the same period of 2011. The revenues from tourism for 2012 are expected to reach €1.9 billion, which is the highest in eleven years.

For the first part of the 20th century Cyprus was not well known as a tourist destination, but that changed when the island was promoted as a “sun and sea” destination, with around 340 days of sunshine a year – this continues to be a crucial element in the Cypriot tourism product. But government efforts to bring diversity into the industry and attract high-spending visitors to the island throughout the year are also beginning to bear fruit. This, coupled with the strengthening of links with major tour operators, a significant expansion in the number of flight destinations and the astute development of niche tourism in Cyprus, all indicate that the sector will continue to flourish in the years ahead.

International Business Forum Cyprus-Poland, 22nd of November 2012 In order to learn more about all of the advantages and possibilities Cyprus has to offer your business, its attractive tax system and ease of company registration, we warmly invite all interested parties to the

BROUGHT TO YOU BY CYPRUS TRADE CENTRE

International Business Forum Cyprus – Poland, which will take place in Wroc∏aw, on Thursday 22nd of November in Mercure hotel. Organizers of the Forum are the Cyprus Chamber of Commerce and Industry and the Cyprus Trade Centre in Warsaw, in cooperation with the Western Chamber of Commerce from Wroc∏aw and under the umbrella of the Ministry of Commerce, Industry and Tourism. There will also be the possibility to meet with representatives of Cypriot business circles: lawyers, tax advisors, business consultants etc. The entrance for the event is free. For more information, please visit the website of the Western Chamber of Commerce at www.zig.pl, or 71 795-0656 We assure you that companies from Poland will be more than welcome to explore Cyprus and discover the advantages that it offers. The Cyprus Trade Centre is keen to provide all businesspeople information about the opportunities offered and the necessary contacts to establish their business or to invest in Cyprus.

For further information regarding investments in Cyprus and registration of companies you can contact the following institutions: Cyprus Investment Promotion Agency Tel: +357 22 441 133 Fax: +357 22 441 134 e-mail: info@cipa.org.cy www.cipa.org.cy One-Stop Shop Ministry of Commerce, Industry and Tourism 13-15 A. Araouzos Str. 1421 Nicosia, Cyprus Tel: +357 22 409 328 Fax: +357 22 409 432 e-mail: onestopshop@mcit.gov..cy Cyprus Trade Centre ul. Plicka 4 02-629 Warsaw, Poland Tel: 22 854 01 77 Fax: 22 854 01 80 e-mail: ctc@cyprustrade.pl www.cyprustrade.pl

The economy minister wants to extend the lifespan of Poland’s SEZs

How does Poland attract FDI? 13

12

FDI IN FOCUS

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

NOVEMBER 19-25, 2012

Foreign investment outlook

FDI inflows to remain stable despite crisis Investor confidence is waning along with the economic outlook, but Poland’s stability and the investment opportunities it affords are such that FDI is not expected to fall by much.

AT Kearney’s 2012 FDI Confidence Index shows Poland has plummeted to 23rd from 6th in the preceding (2010) index, indicating a significant fall in the country’s attractiveness perception among foreign investors.

Poland was in 22nd place in 2007, suggesting that its stock rocketed in the intervening years due to its stand-out economic performance during the height of the crisis, before coming back down to earth as the afterglow started to fade and its economy hit slow-down mode.

Outlook stable Nevertheless, Marek ¸y˝wa, vice president of the Polish Information and Foreign Investment Agency (PAIiIZ), said that despite the economic

slowdown, FDI into Poland will likely not be lower this year than in it was in 2011. He added that he expects it to remain at a similar level next year.

Pawe∏ Tynel, a director at Ernst &Young in Poland, said that while while the number of FDI projects is likely to remain stable, their value will, on average, probably fall.

“This is the result of firms being more cautious about undertakings,” he said.

“Investors are now analyzing business cases more thoroughly before investing – they are trying to be as precise as possible,” he added, explaining that they have become less creative and are taking fewer risks, meaning they need to be sure there is demand for their products and the investment location is suitable before they commit.

Advantage Poland PAIiIZ is responding to these more cautious attitudes, but is being helped by Poland’s relatively stable political and economic situation, and the strength of its workforce.

Continued on p. 13 ➡

SHUTTERSTOCK

Poland’s fundamentals remain strong despite the fall in investor confidence

Investment in Poland’s aviation industry has remained strong

Investing in Poland project

WBJ to hand out Investment of the Year Award this week at special event As part of our Investing in Poland project, we are recognizing companies that make big, longterm, innovative and sustainable impacts with their investments Warsaw Business Journal is very excited to be giving out

our first Investment of the Year Award at a celebration in the Amber Room restaurant in Warsaw this week. The award ceremony is part of our Investing in Poland project, which has grown out of our Investing in Poland series of annual publications.

The project has an important aim: to encourage and raise awareness of foreign

investment in Poland, and to promote Poland’s potential as an investment location. We hope that recognizing great investments in Poland with this award each year will help us achieve that goal.

This initiative comes at a critical juncture for foreign investment in Poland. Several years after it was touted as a “green island” in a sea of red

(that is, recession-bound) countries in Europe, Poland’s economy is slowing down. The indicators have investors worried that although the country’s fundamentals remain strong, outside factors could derail the success of foreign direct investments (see article, above).

So it is important to remind investors that with growth set

to come in at well over 2 percent this year, Poland’s economy remains one of the fastestgrowing in Europe. While it can’t control outside factors, internally, Poland still boasts a huge, growing domestic market hungry for better goods and services. It also possesses a large, young, well-educated workforce that will serve business process outsourcing and

research and development investments well.

Continued on p. 12 ➡

In this supplement FDI outlook . . . . . . . . . . . . . . . . . .11,13 Investing in Poland project . . . .11-12 Investment incentives . . . . . . . . . . .12 Special economic zones . . . . . . . . .13 Biggest foreign investments . . . . .14

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

PUBLISHER VALKEA MEDIA SA COLUMNISTS

MANAGING EDITOR

GARETH PRICE (GPRICE@WBJ.PL) POLITICS EDITOR

REMI ADEKOYA (RADEKOYA@WBJ.PL) REAL ESTATE EDITOR

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL)

JOURNALIST

ADAM NARCZEWSKI ANDREW NAWROCKI

E. BLAKE BERRY EWA BONIECKA DAVID INGHAM

MARKETING &SALES

(ABREJWO@WBJ.PL) PRODUCTION MANAGER

PIOTR WYSKOK

MANAGING DIRECTOR MONIKA STAWICKA

EWA BROGOSZ-KORYCKA (EBROGOSZ-KORYCKA@WBJ.PL)

AGNIESZKA BREJWO MARKETING &SALES DIRECTOR

IZABELA DEPCZYK (IDEPCZYK@VALKEA.COM) CONTRIBUTORS

EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL)

MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL)

¸UKASZ MAZUREK

AGNIESZKA KUCZY¡SKA (AKUCZYNSKA@WBJ.PL)

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

PR & MARKETING SPECIALIST

KATARZYNA MAREK (KMAREK@WBJ.PL) SUBSCRIPTIONS MANAGER

GRAPHIC DESIGNER

PRINT & DISTRIBUTION COORDINATOR

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

BOOK OF LISTS SPECIALIST

MONIKA BRYSIAK (MBRYSIAK@VALKEA.COM)

12

FDI IN FOCUS

www.wbj.pl

NOVEMBER 19-25, 2012

Investment incentives

Attracting investment with tax breaks and a national brand Poland uses its reputation and SEZs to woo investors Poland is attractive to investors because of its geographic location, a well-qualified workforce and an economy that’s still growing despite a global economic crisis. Also, the country is stable politically and receives billions of euros in EU funds every year to improve its infrastructure.

In 2011, Poland received roughly €13.6 billion in FDI,

according to the National Bank of Poland. By contrast, the Czech Republic, the CEE’s second-largest economy (although with a much smaller population than Poland’s), saw €3.8 billion in FDI last year, according to its National Bank.

There are currently 14 special economic zones in Poland, which offer a variety of attractive incentives including tax exemptions, close proximity to suppliers and customers, and investment sites already developed

with infrastructure and utilities.

The SEZs are scheduled to operate until 2020 although the Ministry of the Economy is making efforts to extend that period. According to its calculations, investors in the SEZs saved well over €1 billion thanks to tax breaks between 2007 and 2010.

An investor needs to agree with the specific authorities on how many jobs will be created in an SEZ through an investment and must later fulfill this

agreement. The minimum value of an SEZ investment is usually €100,000.

Poland also has several industrial and technology parks, well suited, especially, for SMEs. Certain parks focus on one particular industry, while others are open to almost any business proposition. But they all exist to support entrepreneurship and innovation. They also provide services such as IT and accounting.

So how important are these incentives for investors?

“The most important thing is the brand of a country.

Today, Poland has quite a good brand, especially after being the only EU country to have GDP growth in 2009,” said Jerzy Kwieciƒski, development expert at the Business Center Club. “It’s like with a product, if it has a good brand then people want to buy it, if not, then it’s difficult to sell even if you offer good deals,” he added.

Mr Kwieciƒski said the SEZs have worked well for

Poland and should be extended beyond 2020. He added, however, that in his opinion, it is time for Poland’s regions to build their own specialist brands “just as small EU countries do.”

“When you mention, say, Ma∏opolska, people should think, aha, Kraków, IT. Each region needs to market its own specialty. They have the funds to do this, it’s a matter of creating the proper institutions,” he added.

Remi Adekoya

WBJ to hand out Investment of the Year Award this week at special event ➡ Continued from p. 11 The investments that have been nominated for the Investment of the Year Award put those advantages into sharp focus. To come up with our nominees, we asked our partners at various international chambers of commerce in Poland to survey investments made by their members, and offer up nominations.

Investments were evaluated on amount invested, number of jobs created, innovativeness, sustainability and

Publication partners:

long-term impact. Since this was our first time deciding on the award, qualifying projects had a two-year window: they must have been initiated between the beginning of 2011 and the end of 2012.

The final five investments that made the shortlist were carried out by AstraZeneca (an R&D center), Estudio Lamela (design of a stadium in Lublin), Itella (a shared services center), Pittsburgh Glass Works (a production facility) and Servier (its combined investments in Poland).

Each of the investments were profiled by WBJ over the past several weeks.

In early November, a jury of 11 members of the business community with knowledge of foreign investment in Poland met to decide on a winner, who will be an-nounced when the award is handed out at the celebration this week.

The jury included: • Lidia Adamska – Member of the Management Board, Warsaw Stock Exchange • Dorothy Dabrowski –

•

•

•

•

Executive Director, American Chamber of Commerce Marcin Grodzki – Vice Director, Polish-Spanish Chamber of Commerce Bertrand Jannet – Vice President, French Chamber of Commerce and Industry in Poland Michael Kern – General Director, Polish-German Chamber of Industry and Commerce Pawe∏ Kotowski – Director, Department of the Americas, Ministry of Foreign Affairs

Conference partners:

• Agnieszka Kowalcze – Director, ScandinavianPolish Chamber of Commerce • Andrew Kureth – Editorin-Chief, Warsaw Business Journal • S∏awomir Majman – President, PAIiIZ • Jacek Socha – Deputy Chairman of PwC in Poland.

• Joe Tunney – President, British Polish Chamber of Commerce Though this is the first year for the Investment in Poland

Media patronage:

w w w. b i l a n s . e u

Award, Warsaw Business Journal has been carrying out its Investing in Poland initiative for four years. Along with the award, this year the project includes the Investing in Poland 2013 publication – the first in the series to be translated into both Spanish and Mandarin Chinese.

In September, WBJ also held a conference on investing in Poland to mark the launch of the latest edition in the series.

Andrew Kureth

For more information, or to download the publication, visit WBJ.pl

Strategic partner for Spanish & Chinese editions:

FDI IN FOCUS

NOVEMBER 19-25, 2012

www.wbj.pl

13

FDI inflows to remain stable despite crisis ➡ Continued from p. 11

He pointed out that Poland’s investment climate can always be improved by introducing legislation concerning matters such as labor costs, incentives and infrastructure. “There is no quick win in this last area,” he warned.

we draw up proposals,” said Mr ¸y˝wa, adding that, in his opinion, Poland has the highest cost-production ratio in Europe. “The workforce is not the cheapest, but it is the best labor for the price,” he said.

Mr Tynel cautioned that Poland’s investment authorities should be aware of the international dimension – that Poland is competing for FDI in an unforgiving environment.

“We should not be complacent as regional leaders, since we’re now starting to compete with countries outside of our region,” he said.

Project pipeline

COURTESY OF FIAT

“There have been lots of improvements for those wanting to invest in Poland,” said Mr ¸y˝wa. “Our strength is our location in Europe, our political and economic stability, and the high potential of our human capital,” he added.

In particular, he touted the fact that over 50 percent of Poles are below 35 years of age, and that Poland boasts the largest number of students in Europe. According to the OECD, it also the hardest working nation in Europe, and second only to South Korea

globally.

Asked whether he had observed an increase in caution among foreign investors, Mr ¸y˝wa said, “yes and no.”

“We are improving our approach,” he said, explaining that every year PAIiIZ draws up a document it sends to the government pointing out barriers to investment. The investment body also works with regional officials to promote Poland’s voivodships.

“The Polish economy is slowing … but we are still receiving a large number of inquiries and visits from potential investors for whom

Foreign car producers in Poland have been suffering from low demand

Special economic zones

Ministry of Economy wants to prolong life of SEZs

Special economic zones have attracted a significant number of investments in Poland in recent years but the law governing them only provides for their operation till 2020. The Ministry of Economy hopes that the entities could be kept in existence for longer.

A proposal to extend the lifespan of the zones was discussed in the Polish parliament earlier this year. There was talk of extending the operation period till 2026, with Economy Minister Waldemar Pawlak having recently come out in favor of an indefinite extension.

The issue, however, is still subject to discussions within the government. The finance minister’s opinion on the matter is different from that of the Ministry of Economy, Mr Pawlak told journalists in September.

Meanwhile, a 2011 report

by Ernst & Young pointed out that special economic zones are

now becoming less and less attractive for new investors since new investments are not able to take full advantage of all tax breaks if SEZs are to cease operating in 2020.

It added that more than half of the current investors were not planning new investments in the zones if these were to only operate till 2020. “Prolonging the functioning of the special economic zones is a factor that directly decides about their attractiveness,” the report said.

Similar conclusions were reached by KPMG experts, who, in their 2011 report on special economic zones said that “a six-year extension may

... lead to an increase in capital expenditures by even as much as z∏.40 billion.”

Special economic zones, of which 14 currently exist in Poland, have operated in the country since 1995. According to Ministry of Economy data, 1,507 business permits had been issued in the zones by the end of the second quarter of this year.

By that time, the ministry estimates, special economic zones in Poland had attracted z∏.82.243 billion worth of investments and accounted for the creation of over 183,500 new jobs, of which 58,780 had been maintained.

Adam Zdrodowski

COURTESY OF THE EUROPEAN PARLIAMENT

The move would be crucial for the investment attractiveness of the entities, experts say

Economy Minister Waldemar Pawlak favors extending the lifespan of Poland’s SEZs

PAIiIZ has 132 strategic projects in the pipeline worth around €4.23 billion and with the potential to create 26,000 jobs. Most projects – some 25 – are in the BPO/SSC sector, followed by automotive (21), R&D, ICT and electronics.

The US, Germany, the UK and China, in that order, are the main sources of the nascent projects.

“BPO is definitely proving to be pretty strong,” said Mr Tynel. “It is not cooling down and there is now a critical mass of these centers in Poland, meaning a culture of working in this sector is developing,” he added.

In line with Poland’s aim of boosting innovation, strategic sectors – meaning those given the most support and financial incentives – include R&D, SSC and aviation, with the US, Germany, the UK, France, Japan and South Korea all belonging to the list of strate-

gic countries. China, India, Russian and Brazil comprise the long-term strategic countries.

Mr ¸y˝wa pointed out that so far this year foreign investors have been particularly active in the BPO/SSC, automotive and aerospace industry sectors.

Aviation Valley in Podkarpackie, southeastern Poland, boasts over 100 foreign investors making aircraft parts, and has seen significant investor activity of late, as have less well-known clusters in Bielsko-Bia∏a and Kalisz.

However, not all sectors are doing as well, with the car production industry in partic-

ular going through a lean time of late. Italian giant Fiat announced recently that it will cease producing the Fiat Panda Classic at its plant in Tychy, in the Silesia voivodship.

“Car producers are struggling, but car parts suppliers who export goods elsewhere are doing well,” said Mr Tynel.

“However, regardless of the difficult economic situation, the interest generally among foreign investors in Poland has remained at a similar level for the last 18 months and we’re not expecting a dramatic change up or down,” he added.

Gareth Price

Investment returns FDI inflow to Poland, 2006-2011, in € billions

20 15 10 5 0 2006

2007

2008

2009

2010

2011

Source: NBP, PAIiIZ

14

FDI IN FOCUS

www.wbj.pl

NOVEMBER 19-25, 2012

Biggest foreign investments The biggest 50 foreign investments aided by the Polish Information and Foreign Investment Agency (PAIiIZ) in 2011* (Ranked by amount invested)

Country

Sector

Investment value (€ mln)

Employment

Location

France

Tobacco products

8

200

Lublin, Krasnystaw

United States

Automotive

7.5

20

Gorzyce

Sweden

Energy

6.5

320

Ryki

29. Fortitech

United States

Food

6

20

Buk

30. MESERA

Finland

Metals

5

8

Wysogotowo

31. Haoneng Packing Co.

China

Packaging

4

60

Kraków

Denmark

Machinery

4

150

Ostrowiec Âwi´tokrzyski

33. BNP Paribas

France

BPO

3

300

Warsaw

34. State Street

United States

BPO

2

600

Kraków

India

BPO

2

200

Warsaw

36. Nordea Bank

Sweden

BPO

1.8

250

¸ódê

37. X-Yachts

Denmark

Shipbuilding

1.6

50

Go∏dap

Investment value (€ mln)

Employment

Location

Italy

Automotive

353.75

0

Tychy

2. Pilkington

Japan

Automotive

96

400

Chmielów

27. Federal-Mogul

3. Uflex

India

Packaging

65

130

WrzeÊnia

28. Theofinance

4. Liu Gong

China

Machinery

62.5

500

Stalowa Wola

5. Volkswagen Motor Polska

Germany

Automotive

62.5

151

Polkowice

6. Creaton Polska

Belgium

Construction

60

151

Widziszewo

United States

Chemicals

42

250

Wroc∏aw

Japan

Energy

41.5

182

˚arów

United States

Automotive

40

295

Czechowice – Dziedzice

Japan

Food

38

100

Âwidnica

11. Exide Technologies

United States

Electronics

35

67

Poznaƒ

12. P&G

1. (Would Not Disclose)

7. 3M 8. Bridgestone 9. TRW Automotive 10. Lotte

Rank

Sector

Rank

Country

Name of company

Name of company

26. Biosyntec

32. Weiss

35. (Would Not Disclose)

United States

FMCG

32.5

50

Nowy Józefów

13. Ter Beke and Stefano Toselli

Belgium/France

Food

27

142

Opole

38. Akamai Technologies

United States

R&D

1.5

50

Kraków

14. Hamilton Sundstrand

United States

Aviation

21.5

268

Rzeszów

39. Dong-A Hwa Sung Co.

Ltd.

South Korea

Electronics

1

30

Kobierzyce

Germany

Automotive

20

40

Nowa Sól

40. Infusion

United States

ICT

1

60

Kraków

16. CSM Global

Netherlands

Food Technology

15

200

Nowa Sól

41. Intel

United States

R&D

1

60

Gdaƒsk

17. Nifco

South Korea

Automotive

15

200

˚ory

United Kingdom

BPO

1

200

¸ódê

18. BriVictory TPV/AUO

China

Electronics

14

1,978

Gorzów Wielkopolski

Finland

R&D

0.82

90

¸ódê

19. Kosmepol

France

Chemicals

11

0

Kanie

United Kingdom

ICT

0.8

70

¸ódê

South Korea

Electronics

10

220

Strzelce Opolskie

United States

BPO

0.6

250

Katowice

21. (Would Not Disclose)

China

Electrical

10

150

Kobierzyce

Japan

Automotive

0.6

10

Wa∏brzych

22. (Would Not Disclose)

United Kingdom

Chemicals

10

120

Szczecin

47. Credit Suisse

Switzerland

BPO

0.5

250

Wroc∏aw

23. Hispánica de Aviación

Spain

Aviation

9

107

Âwidnik

48. Stefanini

Brazil

ICT

0.5

50

Kraków

Ireland

Polyethylene foam materials

9

300

Olszyna

49. Bridgestone

Japan

BPO

0.3

120

Poznaƒ

South Korea

Chemicals

9

30

Kobierzyce

United States

R&D

0.2

40

¸ódê

15. GEDIA Gebrüder

20. Pearl Stream

24. Novostrat Ltd 25. (Would Not Disclose) *Most recent data available

42. Tate & Lyle 43. Pöyry 44. Rule Financial 45. PwC 46. (Would Not Disclose)

50. Bankruptcy Management

Solutions (BMS)

Source: PAIiIZ

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THE LIST

NOVEMBER 19-25, 2012

www.wbj.pl

15

Financial Services

Pension Funds Ranked by total net assets (as of October 31, 2012)

Rank

www.bookoflists.pl

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

Total net assets (z∏. mln) / Number of participants (as of October 31, 2012)

Equity (z∏. mln) (as of December 31, 2011)

Date fund license obtained / Activity start date

Fund Manager

Ownership: Polish / Foreign

Top local executive / Title

1

ING Powszechne Towarzystwo Emerytalne SA ING Otwarty Fundusz Emerytalny ul. Topiel 12, 00-342 Warsaw 801-203-040/22 522-1111 info@ing.pl www.ing.pl

60,691.4 3,008,677

528.4

Jan. 26, 1999 May 20, 1999

Piotr Bieƒ; Grzegorz Ch∏opek; Ewa Radkowska-Âwi´toƒ; Kamil Sobolewski

ING Bank Âlàski - 20% ING Continental Europe Holdings - 80%

Grzegorz Ch∏opek; Ewa Radkowska-Âwi´toƒ; Józef Proƒ

Aviva Powszechne Towarzystwo Emerytalne Aviva BZ WBK SA Aviva Otwarty Fundusz Emerytalny Aviva BZ WBK ul. Domaniewska 44, 02-672 Warsaw 801-888-444/22 557-4039 bok_ofe@aviva.pl, www.aviva.pl

57,520.6 2,673,918

376.3

Powszechne Towarzystwo Emerytalne PZU SA Otwarty Fundusz Emerytalny PZU “Z∏ota Jesieƒ” Al. Jana Paw∏a II 24, 00-133 Warsaw 801-102-102/22 582-2905 poczta@ptepzu.pl www.pzu.pl

34,260.0 2,223,591

277.2

Amplico Powszechne Towarzystwo Emerytalne SA Amplico Otwarty Fundusz Emerytalny ul. Przemys∏owa 26, 00-450 Warsaw 22 523-5555/22 622-1666 pteinfo@metlifeamplico.pl www.metlifeamplico.pl

20,197.8 1,270,241

342.2

AXA Powszechne Towarzystwo Emerytalne SA AXA Otwarty Fundusz Emerytalny ul. Ch∏odna 51, 00-867 Warsaw 801-200-200/22 555-0500 emerytury@axa-polska.pl www.axaofe.pl

15,994.2 1,162,539

115.7

Generali Powszechne Towarzystwo Emerytalne SA Generali Otwarty Fundusz Emerytalny ul. Post´pu 15B, 02-676 Warsaw 801-343-343/22 543-0899 centrumklienta@generali.pl www.generali.pl

12,820.6 1,006,370

243.8

NORDEA Powszechne Towarzystwo Emerytalne SA Nordea Otwarty Fundusz Emerytalny Al. Jana Paw∏a II 27, 00-867 Warsaw 801-306-306/22 541-0001 info@nordeapolska.pl www.nordeapolska.pl

11,369.3 888,549

54.0

AEGON Powszechne Towarzystwo Emerytalne SA Aegon Otwarty Fundusz Emerytalny ul. Wo∏oska 5, 02-675 Warsaw 801-300-900/22 847-4640 pte@aegon.pl www.aegon.pl

10,928.0 950,757

565.4

PKO BP BANKOWY Powszechne Towarzystwo Emerytalne SA PKO BP Bankowy Otwarty Fundusz Emerytalny ul. Pu∏awska 15, 02-515 Warsaw 801-101-010/22 580-2380 bok@bankowy.pl, www.bankowy.pl

8,929.1 658,131

240.4

Powszechne Towarzystwo Emerytalne Allianz Polska SA Allianz Polska Otwarty Fundusz Emerytalny 10 ul. Rodziny Hiszpaƒskich 1, 02-685 Warsaw 801-102-030/22 567-4649 info@allianz.pl www.allianz.pl

7,734.1 553,782

193.6

Pocztylion – Arka Powszechne Towarzystwo Emerytalne SA Otwarty Fundusz Emerytalny Pocztylion 11 Pl. Pi∏sudskiego 3, 00-078 Warsaw 801-101-801/22 529-0095 www.pocztylion-arka.pl

4,816.5 596,290

47.0

Pekao Pioneer Powszechne Towarzystwo Emerytalne SA Pekao Otwarty Fundusz Emerytalny 12 ul. Domaniewska 41A, 02-672 Warsaw 801-222-022/22 874-4609 poczta@pekaopte.pl, www.pekaopte.pl

3,811.6 342,998

53.6

Powszechne Towarzystwo Emerytalne WARTA SA Otwarty Fundusz Emerytalny WARTA ul. Chmielna 85/87, 00-805 Warsaw 13 801-366-366/22 582-8950 info@ofewarta.pl www.ptewarta.pl

3,412.1 311,659

37.1

Powszechne Towarzystwo Emerytalne Polsat SA Otwarty Fundusz Emerytalny Polsat Al. Stanów Zjednoczonych 61A, 04-028 Warsaw 14 801-080-040/22 516-2417 ptepolsat@ptepolsat.com.pl www.ptepolsat.com.pl

2,233.0 301,021

105.0

2

3

4

5

6

7

8

9

Notes: Data for The List was provided by Analizy Online SA, ul. Hrubieszowska 6A, 01-209 Warsaw, tel. 22 431-8298, www.analizy.pl Footnotes: (1) Permission of Polish Financial Supervision Authority required.

President; Vice President; Board Member

Aviva Towarzystwo Ubezpieczeƒ na ˚ycie - 51.1%; BZ WBK - 10% Aviva Inetrnational Insurance - 38.9%

Pawe∏ Pytel; Marcin ˚ó∏tek, Pawe∏ Klimkowski

Jan. 26, 1999 May 20, 1999

Pawe∏ Klimkowski; Marcin ˚ó∏tek

Jan. 26, 1999 May 20, 1999

Marek Jezierski; Andrzej So∏dek; Marek Sojka; Arkadiusz Julke

PZU ˚ycie - 100% None

Jan. 26, 1999 May 20, 1999

Krzysztof Madej; Rafa∏ Mikusiƒski; Tomasz Stankiewicz

Amplico Life - 50% Alico - 50%

Rafa∏ Mikusiƒski; Marek Lisowski, Gabriel Borg, Tomasz Stankiewicz

Jan. 29, 1999 May 20, 1999

Robert Garnczarek; Adam Kurowski; Konrad Maniak

None Société Beaujon - 100%

Robert Garnczarek; Pawe∏ Michalik, Jaros∏aw Hermann

Jan. 29, 1999 May 20, 1999

Rafa∏ Markiewicz; Marcin Wojcik; Tomasz Bilecki; Micha∏ Ferenc

Generali T.U. - 100% None

Piotr Pindel, Jacek Smolarek, Rafa∏ Markiewicz

Feb. 2, 1999 May 20, 1999

Pawe∏ Wilkowiecki

None Nordea Life Holding - 100%

Piotr Królikowski; Pawe∏ Wilkowiecki, Agata Kulas, Maciej Kloze

President; Board Members

Andrzej So∏dek; Marek Sojka; Hubert Drà˝kiewicz President; Vice President; Board Member

President; Board Members

President; Board Members

Board Members

President; Board Members

Feb. 5, 1999 May 20, 1999

Sergiusz Fràckowiak

Jan. 26, 1999 May 20, 1999

Tomasz Rak; Wojciech Labryga

May 4, 1999 Aug. 11, 1999

Rafa∏ Trzop; Grzegorz Zubrzycki

Feb. 5, 1999 May 20, 1999

Andrzej Bàk

Apr. 19, 1999 Jul. 19, 1999

Kamil Kosiƒski; Wojciech CieÊlak

None AEGON Woningen Nova - 100%

Dorota Dziugie∏∏, Jacek Kuczewski, Marcin HadyÊ(1)

PKO Bank Polski - 100% None

Ewa Ma∏yszko; Marzena Koczut, Wojciech Rostworowski

TUiR Allianz Polska - 58.3% Allianz - 41.7%

Agnieszka Nogajczyk-Simeonow; Grzegorz Zubrzycki; Jerzy Nowak

Poczta Polska - 33.3%; Konferencja Episkopatu Polski - 4%; BNP Paribas Assurance - 33.3% Invesco Holding Company - 29.3%

Bank Pekao - 65% Pioneer Global Asset Management - 35%

Board Members

President; Vice Presidents

President; Vice President; Board Member

Tomasz Frontczak(1); Adam Gola, Mariusz Wnuk President; Board Members

Tomasz J. Baƒkowski; S∏awomir M. Kolarz, Marek Sakowski President; Vice Presidents

Jan. 29, 1999 May 20, 1999

Tadeusz Gacyk; Grzegorz Ja∏tuszyk; Ludomir Zalewski; Bartosz Stryjewski; Tomasz Markowski

None KBC Verzekeringen - 100%

Feb. 24, 1999 May 20, 1999

Robert Woêny

PAI Media - 84%; Invest-Bank - 14%; Totalizator Sportowy - 2% None

Marek Jandziƒski; Tadeusz Gacyk; Konrad Biedul President; Vice President; Board Member

Anna Horsecka; Katarzyna Jakóbiƒska, El˝bieta Ziarkowska President; Vice Presidents

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

The sale of the Warsaw Financial Center office tower has been completed

Developers discussed mall expansion and modernization at MAPIC last week 18

19

LOKALE IMMOBILIA The scheme will deliver over 15,300 sqm of office space

Construction has finished on the Andersia Business Centre office project in Poznaƒ, in western Poland. A joint venture between Von der Heyden Group and the City of Poznaƒ was the investor behind the €33 million scheme. The development, whose general contractor was PORR Polska, has delivered 11,200 sqm of office space and 2,300 sqm of retail areas. Knight Frank is the exclusive leasing agent of the investment.

UBM Times, a special purpose vehicle of Austrian developer UBM, is planning to build a new office project called Times II in Wroc∏aw, Lower Silesia.

The scheme will provide over 15,300 sqm of office space and 1,580 sqm of service areas.

The development will sit on plots totaling approximately 0.5 hectares, which the company has recently purchased from municipal authorities.

The land is located in the area of ul. Ruska, ul. Êw. Miko∏aja and ul. Grabarska in the city’s Old Town neighborhood.

“Being aware of the very specific location of the project and its unique neighborhood, we will do everything we can to make the planned buildings complement the destroyed urban fabric and add a business character to the plots,” UBM Polska board member

Real estate investor Resolution Property is planning to start expanding the Galeria Pomorska shopping center in Bydgoszcz in mid-2013. The area of the mall will grow from the current 29,950 sqm to over 43,000 sqm and the number of stores will increase from over 100 to 130. Galeria Pomorska opened for business in April 2003. The extension process is scheduled to finish in the autumn of 2014. ●

In this issue New UBM offices . . . . . . . . . . . .16 Brama Mazur mall . . . . . . . . . . .16 Galeria Aviator land . . . . . . . . . .16 High streets . . . . . . . . . . . . . . . .17 City Outlet Lublin . . . . . . . . . . . .17 Property-related stocks . . . . . .17 WFC sale . . . . . . . . . . . . . . . . . . .18 GreenWings cornerstone . . . . .18 New Warsaw tower . . . . . . . . .18 MAPIC 2012 . . . . . . . . . . . . . . . . .19

COURTESY OF UBM POLSKA

UBM unveils Times II office project in Wroc∏aw

Andersia offices completed

Galeria Pomorska in for extension

NOVEMBER 19-25, 2012, LI 17/46

Office

The design of Times II was made by the APA Hubka studio Peter Obernhuber said in a statement.

The developer plans to launch construction on Times II, whose design has been fur-

nished by architects from the APA Hubka studio, at the turn of the second and third quarters of next year. The investment is expected to be com-

Brama Mazur mall gets permit Retail space developer Master Management Group has secured a building permit for the planned Brama Mazur shopping center project in E∏k in northeastern Poland. Construction on the scheme, whose general contractor is Mostostal Warszawa, is expected to launch later this month.

Master Management Group has already started demolishing existing structures sitting on the land on which the development will be constructed. The investment is scheduled to be completed in the first quarter of 2014.

Brama Mazur, which will entail the revitalization of a pre-war army storage facility, will deliver 16,250 sqm of leasable space. The facility’s

COURTESY OF QUESTIA

COURTESY OF VON DER HEYDEN GROUP

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

Brama Mazur is scheduled for completion in Q1 2014 tenants will include a hypermarket and a four-screen movie theater.

“The commercialization of the Brama Mazur shopping center is moving forward swiftly,” stated Micha∏ Masz-

takowski, leasing and development director at Master Management Group, adding that many potential tenants recognize the potential of E∏k and want to enter the market.

Adam Zdrodowski

pleted 20 months later.

UBM has been active in Poland since 1993 and is present in both the country’s commercial and residential prop-

erty markets. The company is currently involved in projects including the Poleczki Business Park complex in Warsaw.

Adam Zdrodowski

Rank Progress acquires land for Galeria Aviator mall in Mielec Warsaw Stock Exchange-listed developer Rank Progress has finished buying plots of land for its planned Galeria Aviator shopping center project in Mielec, in southeastern Poland. The scheme will deliver over 26,000 sqm of leasable space.

The development is in the final stage of the design process, with the investor planning to submit a building permit application in the near future. Rank Progress hopes to launch construction in spring next year and finish it in the autumn of 2014.

The investment will feature

tenants including a DIY hypermarket, a grocery supermarket, a consumer electronics retailer and the first multiscreen movie theater in the region. A parking lot with spaces for 1,200 cars will also be provided.

“Galeria Aviator is another important step in our expansion and development. We decided to develop the project in Mielec because the purchasing power in the region much exceeds the national average,” Jan Mroczka, president of the management board of Rank Progress, said in a statement.

Adam Zdrodowski

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

LOKALE IMMOBILIA – REAL ESTATE

High streets

CBRE has announced that a new outlet project called City Outlet Lublin will be developed in Lublin in southeastern Poland by the end of 2013. The company is the exclusive leasing agent of the scheme.

The development, whose investor is ADV Por Property Investment, will be built on Lublin’s ul. Me∏giewska, one of the main thoroughfares in

COURTESY OF CUSHMAN & WAKEFIELD

The rents on most high streets in Poland have remained unchanged or recorded only minor decreases over the last year, according to a recent report by Cushman & Wakefield. Warsaw’s Nowy Âwiat is still the most expensive location of this kind in the country, the study said.

The average annual rent on ul. Nowy Âwiat, which came in 43rd in Cushman & Wakefield’s “Main Streets Across the World” report, now amounts to €1,020 per sqm and has not changed since last year.

Kraków’s ul. Floriaƒska and Warsaw’s ul. Chmielna and ul.

Marsza∏kowska are the next most expensive high streets in Poland, with their average annual rents reaching €948, €852 and €732 per sqm, respectively.

The largest rent decreases have been recorded in ¸ódê (by 6.9 percent), Gdynia (5.7 percent) and Wroc∏aw (4.3 percent). On Al. Niepodleg∏oÊci in Szczecin the rents have actually

risen by three percent.

“Despite an economic slowdown in Europe, high streets in Europe continue to attract tenants, vacancies are rare and the rent levels are stable,” Katarzyna Michnikowska, senior consultant in the valuation and advisory department of Cushman & Wakefield, said in a statement.

She added, however, that in Poland the high street tenant mix is varied and frequent changes of tenants are being seen, an indication of the immaturity of this segment of the retail market in the country.

Restaurants, cafes, as well as health and beauty and financial sector companies are the main tenants in high street locations in Poland. “The shortage of high-standard spaces of the right size is the barrier in the expansion of clothes retailers in those locations,” Ms Michnikowska said.

According to the Cushman & Wakefield report, Causeway Bay in Hong Kong (€22,307) and Fifth Avenue in New York (€21,204) are the two most expensive high street destinaAZ tions in the world.

17

New outlet center project to be developed in Lublin

High street rents in Poland remain stable Warsaw’s Nowy Âwiat is still the priciest location in the country

www.wbj.pl

the city, and will be the easternmost located outlet center in Poland.

The facility will comprise 11,500 sqm of leasable space and house more than 100 stores. It is expected to attract both Polish and Ukrainian visitors, with CBRE saying there is already major tenant interest in the investment.

Adam Zdrodowski

Ul. Nowy Âwiat in downtown Warsaw Streets ahead Most expensive high streets in Poland City

Street

Annual rent (€/sqm)

Warsaw

ul. Nowy Âwiat

1,020

Change y/y (%) 0.0

Kraków

ul. Floriaƒska

948

0.0

Warsaw

ul. Chmielna

852

-2.7

Warsaw

ul. Marsza∏kowska

732

-1.6

Poznaƒ

ul. Pó∏wiejska

696

0.0

Katowice

ul. 3 Maja

696

0.0

Warsaw

Plac Trzech Krzy˝y

660

-3.5

Warsaw

A. Jerozolimskie

576

-4.0

Wroc∏aw

ul. Âwidnicka

540

-4.3

Szczecin

Al. NiepodlegÊoÊci

408

+3.0

Gdynia

ul. Âwi´tojaƒska

396

-5.7

¸ódê

ul. Piotrkowska

324

-6.9 Source: Cushman & Wakefield

Property-related stocks Security

Closing price on Nov 15

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

55.70

-2.19

45.85

88.35

71.55

25,530,098

1,422.03

CELTIC

4.20

-14.29

4.20

19.38

19.01

34,231,466

143.77

DOMDEV

30.40

-1.94

23.51

42.80

25.04

24,715,272

751.34

ECHO

4.95

3.56

3.05

4.95

3.44

420,000,000

2,079.00

ELBUDOWA

110.00

0.09

87.00

120.00

100.00

4,747,608

522.24

ENERGOPLD

0.25

-28.57

0.17

2.40

2.45

70,972,001

17.74

ERBUD

13.95

-4.45

11.33

23.20

19.60

12,677,956

176.86

GANT

2.91

8.58

2.68

9.85

7.35

20,120,000

58.55

GTC

7.79

0.13

5.20

11.40

10.98

319,372,990

2,487.92

HBPOLSKA

0.02

0.00

0.01

1.43

0.75

210,558,445

4.21

JWCONSTR

3.40

-5.82

3.37

8.40

6.10

54,073,280

183.85

LCCORP

1.00

-4.76

0.85

1.48

0.98

447,558,311

447.56

MARVIPOL

8.99

0.00

6.20

11.00

7.25

36,923,400

331.94

MIRBUD

1.27

-1.55

0.98

2.68

2.41

75,000,000

95.25

MOSTALWAR

12.00

-4.23

11.30

22.35

21.00

20,000,000

240.00

MOSTALZAB

1.18

-2.48

0.81

1.80

1.14

149,130,538

175.97

ORCOGROUP

9.50

-2.86

6.36

19.55

17.90

107,840,962

1,024.49

PBG

4.18

0.00

3.36

83.90

62.00

14,295,000

59.75

PLAZACNTR

1.96

-5.77

1.93

2.94

1.88

297,181,703

582.48

POLAQUA

4.42

2.79

3.30

8.18

7.50

27,500,100

121.55

POLIMEXMS

0.60

1.69

0.48

2.04

1.60

521,154,076

312.69

POLNORD

11.05

-4.82

10.49

19.85

11.03

25,048,122

276.78

RANKPROGR

11.05

3.27

7.10

16.97

9.60

37,145,050

410.45

ROBYG

1.36

-0.73

1.08

1.75

1.10

257,935,500

350.79

RONSON

0.80

3.90

0.61

1.15

1.00

272,360,000

217.89

TRAKCJA

0.77

-9.41

0.65

1.44

1.39

232,105,480

178.72

ULMA

40.45

-0.74

37.20

74.80

62.90

5,255,632

212.59

UNIBEP

5.12

-1.35

3.60

6.28

6.08

34,021,684

174.19

WARIMPEX

3.77

1.89

2.64

4.62

5.43

54,000,000

203.58

ZUE

6.96

-2.38

5.07

8.50

8.98

22,000,000

153.12

COURTESY OF CBRE

NOVEMBER 19-25, 2012

City Outlet Lublin will deliver 11,500 sqm (visualization)

18

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

NOVEMBER 19-25, 2012

Office

WFC tower acquisition

Investor GreenWings Offices held a cornerstone laying ceremony at the construction site of its eponymous office project in Warsaw earlier this month.

CFE Polska is the general contractor of the scheme.

The development is located on ul. 17 Stycznia in Warsaw’s W∏ochy district, close to the capital’s international airport.

The seven-floor building will comprise more than 10,800 sqm of leasable area and its underground parking lot will provide spaces for 270 cars.

The GreenWings Offices

The building changed hands for €210 mln

The WFC building was completed in 1998 another blockbuster office deal, the sale of the Twarda Tower office skyscraper in downtown Warsaw, was announced. The high-rise building was acquired by real estate fund management firm Europa Capital LLP from a fund managed by BPT Asset Management A/S.

The project will deliver over 10,800 sqm of GLA investment has been designed by the Warsaw-based JEMS Architekci studio. OKRE Development is managing the

investment process, while Cushman & Wakefield and NAI Estate Fellows are the leasing AZ agents of the facility.

Savills appointed leasing agent for new office tower in Warsaw

COURTESY OF CBRE

A consortium of Allianz Real Estate and the Curzon Capital Partners III fund, advised by Tristan Capital Partners, has completed the acquisition of the Warsaw Financial Center office skyscraper in the Polish capital.

CBRE represented the buying party in the transaction in which the sellers were CA Immo and international investment manager Pramerica Real Estate Investors and which was first announced in August.

The deal is valued at €210 million. “It is undoubtedly the highest-profile office transaction in 2012,” Przemys∏aw Felicki, an associate director at the capital markets department of CBRE, said in a statement.

He added that Warsaw remains the focus for international capital and this acquisition reinforces the international appeal of the city for real estate investors. “The current lack of stock continues to drive competition for good quality assets,” Mr Felicki said.

In September this year,

COURTESY OF KOSTRZEWA PR

GreenWings Offices Allianz and Curzon complete cornerstone laid

Completed in 1998, the Warsaw Financial Center skyscraper is located at the intersection of ul. Emilii Plater and ul. Âwi´tokrzyska in the capital’s central business district and stands 144 meters tall.

The facility comprises 50,000 sqm of leasable space.

Adam Zdrodowski

Real estate advisory firm Savills has been appointed the exclusive leasing agent for the planned Grzybowska Corporate Center high-rise office building that developer Golub GetHouse wants to build in Warsaw’s Wola district.

The project will be located on Warsaw’s ul. Grzybowska and will offer over 20,100 sqm of office space over its 23 floors. It is being designed by Epstein and Solomon Cordwell Buenz architects.

Construction on the scheme, which is expected to meet BREEAM certification requirements, is scheduled to launch in mid-2013 and finish after approximately 22 months. Tenants will be able to move into the property three months later.

“Grzybowska Corporate Center will be the first project carried out by Golub GetHouse Property Fund FIZ, a property fund managed by Golub GetHouse,” Czarek Jarzàbek, co-owner and presi-

dent of Golub GetHouse, said in a statement.

“We focus on specific details of the design including rich interiors, elegant common areas and a range of amenities that add value for tenants. We expect our effort will position this development for great success,” Mr Jarzàbek added.

Golub GetHouse is a joint venture between Chicagobased Golub & Company and Warsaw-based GetHouse DeAdam Zdrodowski veloper.

NOVEMBER 19-25, 2012

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

19

MAPIC 2012

Poland in for a wave of mall modernization and expansion Enlarging and upgrading existing shopping center projects was a much-discussed topic during this year’s MAPIC retail property fair in Cannes, France. Retail developers active in Poland pointed out that it is becoming increasingly popular for established shopping centers to expand and modernize.

“Retail real estate market analyses show that it is increasingly popular for established, older shopping centers to modernize and expand,” said Katarzyna Zapa∏a, marketing specialist at Echo Investment.

“It is good to expand shopping centers which are well-located,” she added.

She said that shopping centers are becoming more than just places where several shops are brought together under one roof, and that these days shopping centers must offer the customer a whole enter-

tainment experience.

“We are currently expanding a shopping area in Jelenia Góra, where the majority of the services were just shops, and now we are going to add a whole entertainment part to it, including a multiscreen cinema. We are also thinking about expanding Galaxy in Szczecin,” Ms Zapa∏a said.

Rafa∏ Grzeszek, deputy head of property management Poland at BNP Paribas Real Estate, agreed with Ms Zapa∏a’s assessment.

“Older shopping centers should certainly be modernized, since that is the only way for them to be able to compete against the new modern shopping centers which offer a much wider range of services,” Mr Grzeszek said.

Location, location, location He added that the advantage of many old shopping centers is their location.

“These old shopping centers already have the advantage of being located better

tional, agrees that modernization is the current trend in Poland.

“Modernization of shopping centers is a natural consequence of the development of the Polish retail market. An increasing number of existing shopping centers require fundamental changes, upgrading and even rebuilding,” Ms J´drak said.

Room for new malls COURTESY OF REED MIDEM

There is also still room for new shopping center projects in the country, developers say

The biggest players in the world of real estate gathered in Cannes last week to talk shop than the new shopping malls.

To have a realistic chance of competing against the new ones, however, they need modernization,” he said.

According to a Q3 2012 market report by Jones Lang LaSalle, Poland’s older shopping centers are indeed going through a wave of modernization and extensions.

To date, one-third of the existing shopping centers, that is around 2.5 million sqm of leasable retail space, has been put under some kind of revitalization program, and there are even more revitalization projects in store.

“We estimate that by the end of 2014 at least 20 new shopping centers (in addition

to 74 already modernized) are planned for revitalization,” Jones Lang LaSalle wrote in the report.

These projects include a few Warsaw-based centers such as Klif, Blue City, Promenada and Galeria Mokotów.

Dominika J´drak, director research and consultancy services at Colliers Interna-

On the other hand, developers at this year’s MAPIC also stressed that there is still a lot of space for new retail projects in Poland.

“Poland is an emerging market, it is growing up and still there is space in Poland for new projects,” said Tomasz Szypu∏a, member of the supervisory board at the Ptak shopping center.

Agnieszka Mielcarz, director of the Forum shopping center in Gliwice, agreed. “We are a developed market, but we are also still booming, and we still have big potential,” she ID said.

20

MARKETS

www.wbj.pl

NOVEMBER 19-25, 2012

Stocks report

world stock indices DJIA

NASDAQ

12,542.38 (Nov 15 close)

S&P500

2,836.94 (Nov 15 close)

-2.10% (for the week)

FTSE100

1,353.33 (Nov 15 close)

-2.03% (for the week)

DAX

5,677.80 (Nov 15 close)

-1.76% (for the week)

-1.70% (for the week)

WIG20 proves resilient

NIKKEI225 7,043.42 (Nov 15 close)

8,829.72 (Nov 15 close)

-2.24% (for the week)

-0.08% (for the week)

CHANGE: 1.17%

CHANGE: 7.11%

CHANGE: 5.97%

CHANGE: -0.39%

CHANGE: 15.93%

CHANGE: 3.15%

(year to Nov 15)

(year to Nov 15)

(year to Nov 15)

(year to Nov 15)

(year to Nov 15)

(year to Nov 15)

52-week high: 13,661.90

52-week high: 3,196.93

52-week high: 1,474.51

52-week high: 5,989.10

52-week high: 7,478.53

52-week high: 10,255.20

52-week low: 11,231.40

52-week low: 2,441.48

52-week low: 1,158.66

52-week low: 5,075.20

52-week low: 5,366.50

52-week low: 8,135.79

Andrew Nawrocki WBJ market analyst Last week was a lackluster period for most stock indices in Western Europe, as well as overseas. Concerns that the United States could fall back into recession due to looming spending cuts had investors worried throughout the week. Despite these fears, Monday started off well for Polish stocks, with better-than-expected financial results released by PGNiG pushing blue-chips higher. The WIG20 outperformed all indices in Europe, closing 0.48 percent higher, while the WIG gained 0.37 percent.

Tuesday saw Polish stocks once again remain resilient, despite most of Europe closing in the red. A public clash between Greece’s lenders over how Athens is handling the debt crisis had investors worried. The WIG20 closed the day with a 0.83 percent rise, closing second highest in

Major indices WIG

43,845.94 (November 15 close)

WIG20

2,371.77 (November 15 close)

15.11

14.11

13.11

12.11

09.11

08.11

07.11

06.11

05.11

02.11

31.10

30.10

29.10

15.11

14.11

13.11

12.11

09.11

08.11

07.11

06.11

05.11

2,200

02.11

40,000

31.10

2,260

30.10

41,000

29.10

2,320

26.10

42,000

25.10

2,380

24.10

43,000

23.10

2,440

22.10

44,000

19.10

2,500

18.10

45,000

26.10

52-week low: 2,035.80

25.10

Change year to November 15: 8.10%

24.10

52-week low: 36,653.28

23.10

52-week high: 2,417.32

Change year to November 15: 14.43%

22.10

Change for the week: 1.44%

19.10

52-week high: 44,550.12

18.10

Change for the week: 0.96%

Top 5 ERGIS TFONE PEMUG ZELMER AVIASG

Closing 3.02 1.61 1.15 39.11 47.90

% change (week) 52-week high 36.04 3.27 30.89 2.88 29.21 1.69 24.28 39.33 23.55 48.90

52-week low 1.32 1.13 0.75 19.35 23.85

Top 5 PKNORLEN ASSECOPOL BOGDANKA BRE LOTOS

Closing 44.91 42.90 124.3 306.50 34.25

% change (week) 7.57 5.67 5.34 4.07 3.79

52-week high 46.30 55.45 130.60 329.20 34.47

52-week low 31.44 38.80 103.80 233.00 21.30

Bottom 5 ENERGOPLD ATLANTIS CEDC EFH BBIZENNFI

Closing 0.25 0.16 5.24 0.19 0.19

% change (week) -28.57 -27.27 -27.22 -20.83 -20.83

52-week low 0.16 0.15 5.15 0.16 0.13

Bottom 5 SYNTHOS JSW BRS PKOBP TPSA

Closing 5.22 83.75 0.52 35.45 12.09

% change (week) -5.09 -3.74 -3.70 -1.53 -0.49

52-week high 6.78 112.50 0.89 39.50 18.56

52-week low 3.78 82.50 0.48 30.10 11.90

52-week high 2.50 1.21 21.20 0.73 0.69

Currency report

Other indices sWIG80 Change for the week: 0.63%

Change year to November 15: 9.01%

52-week low: 2,076.52

Change year to November 15: 13.27%

52-week low: 8,218.71

WIG-Banki

15.11

14.11

13.11

12.11

09.11

08.11

07.11

06.11

05.11

30.10

29.10

26.10

25.10

24.10

23.10

22.10

19.10

Adam Narczewski X-Trade Brokers DM SA

18.10

15.11

14.11

13.11

12.11

09.11

08.11

07.11

34.10 (November 15 close)

52-week high: 10,536.29

6,235.68 (November 15 close)

15.11

14.11

13.11

12.11

09.11

08.11

07.11

06.11

05.11

02.11

31.10

30.10

29.10

15.11

14.11

13.11

12.11

09.11

08.11

07.11

06.11

05.11

5,900

02.11

33.0

31.10

6,020

30.10

33.6

29.10

6,140

26.10

34.2

25.10

6,260

24.10

34.8

23.10

6,380

22.10

35.4

19.10

6,500

18.10

36.0

26.10

52-week low: 5,163.30

25.10

Change year to November 15: 12.49%

24.10

52-week low: 33.85

23.10

52-week high: 6,495.06

Change year to November 15: -17.81%

22.10

Change for the week: 0.15%

19.10

52-week high: 43.83

18.10

Change for the week: 0.09%

SOURCE: WSE

NewConnect

06.11

05.11

9,200 02.11

2,200

31.10

9,400

30.10

2,260

29.10

9,600

26.10

2,320

25.10

9,800

24.10

2,380

23.10

10,000

22.10

2,440

19.10

10,200

18.10

2,500

Low volatility on the market

9,746.20 (November 15 close)

52-week high: 2,561.94

02.11

2,387.51 (November 15 close)

31.10

mWIG40 Change for the week: -0.62%

Europe. Shares of PKN Orlen gained for the second straight day, up nearly 5 percent.

On Wednesday, strong corporate earnings from some of the leading companies on the WIG20 fueled buying in Poland, with the index once again closing in the black, up half a percent.

Lotos closed highest, with a nearly 2 percent rise.

Thursday saw another day of strong corporate earnings, with Asseco gaining nearly 5 percent for the day, after releasing better-thanexpected earnings. Moods remained rather bullish for the day, with the WIG20 only briefly falling into the red during the day. The WIG20 closed nearly a quarter of a percent higher.

On Friday, the WIG and WIG20 both shed 0.17 percent, as investors continued to worry about the “fiscal cliff” in the US. ●

Most of the macroeconomic data published last week for major economies did not move the z∏oty market. The trading world was instead waiting for this week when the Eurogroup will probably accept the transfer of money to Greece and the upcoming US “fiscal cliff” discussions between President Obama and Congress take place.

The EUR/USD remained rather stable despite mixed macro data from the US and the euro zone. The markets got no clear impulse, which is why, after reaching a weekly low of $1.2660, the EUR/USD bounced back and finished last week at $1.2740 (weekly high of $1.28).

Large swings can be expected on the yen market due to the planned early

elections after the country’s prime minister dissolved Japan’s parliament. The leader of the political party expected to win will probably be pushing the Bank of Japan to ease monetary policy even more. The market reacted by causing the yen to depreciate, but that trend could turn around very quickly.

On the z∏oty market there was low volatility with the big players (namely, foreign investment banks) staying out of the market and waiting for an impulse. The EUR/PLN, which advanced during the first part of the week, was unable to break z∏.4.19 and corrected to z∏.4.15. The USD/PLN traded in a z∏.3.23-z∏.3.30 range to finish the week at z∏.3.26. ●

currency rates 4.0333 09.11

SOURCE: NBP

4.0405

4.1556 06.11

08.11

4.1277 05.11

07.11

4.1061 02.11

0.1032

0.102 9 09.11

4.0

4.0977

PLN-100JPY

4.5

08.11

0.1037

0.1036 07.11

06.11

05.11

0.1033 02.11

3.4639

3.4570 09.11

0.10

0.1037

PLN-RUB

0.11

08.11

3.4685 07.11

3.4688 06.11

05.11

3.4418 02.11

5.1794

5.1859 09.11

3.4

3.4565

PLN-CHF

3.5

08.11

5.2059 07.11

5.2378 06.11

05.11

5.2058 02.11

09.11

3.2678

3.2682

5.0

5.2102

PLN-GBP

5.3

08.11

3.2750 07.11

3.2945 06.11

05.11

3.2588 02.11

4.1712

4.1614 09.11

3.0

3.2803

PLN-USD

3.5

08.11

4.1754 07.11

4.1782 06.11

05.11

4.1527 02.11

4.1

4.1661

PLN-EUR

4.3

SPORTS

NOVEMBER 19-25, 2012

www.wbj.pl

Soccer

Basketball

Poland beaten by Uruguay in Gdaƒsk

Gortat secures fifth double-double

field sent Mr Suárez clean through and the Liverpool man rounded Mr Tytoƒ before firing in to an empty net.

After the match Poland’s manager was understandably disappointed with the result telling the press, “We got a humiliating lesson in good football … We have been shown the gap between us and one of the best teams in the David Ingham world.”

Luis Suárez

The Polish basketball star helped fire Phoenix to a win over Denver Marcin Gortat scored 12 points and made 11 rebounds in Phoenix Suns’ victory over the Denver Nuggets in the NBA last week.

The Pole helped inspire a stirring comeback against the Nuggets with his team being 10 points down after the first quarter.

Yet by the time the final buzzer went the Suns had turned the match around, achieving a 110-100 win against their Western Conference rivals.

In their second game of the week the Suns fared less well as they went down 112-106 to the Chicago Bulls at the US Airways Center.

Mr Gortat scored 11 and made 8 rebounds in the match but it was not enough to ensure his team continued its winning streak.

But the Pole’s form this season hasn’t gone unnoticed as he’s one of three Phoenix

COURTESY OF WIKIMEDIA COMMONS

Poland’s national soccer team were taught a footballing lesson last week by 2010 World Cup semi-finalists Uruguay at the PGE Arena in Gdaƒsk.

Waldemar Fornalik’s side had started the match brightly but all their early endeavor was undone in the 21st minute when Polish defender Kamil Glik turned a dangerous cross from Liverpool’s Luis Suárez into his own goal to give Uruguay a one-goal lead.

Mr Suárez almost doubled his side’s lead at the 30-minute mark when his right-foot pile driver crashed against the bar with Poland’s goalkeeper Przemys∏aw Tytoƒ well beaten.

Just four minutes later, Mr Suárez, who was the night’s outstanding performer, turned provider as he tricked his way into the penalty area before playing the ball to Napoli front man Édinson Cavani, who sent Mr Tytoƒ the wrong way to score his 13th international goal.

Following a concerted spell of pressure, Poland then halved the deficit mid-way through the second half with an outstanding strike from Ludovic Obraniak.

The Bordeaux midfielder fired in an unstoppable left-footed strike to send Poland’s fans wild.

But it took only 60 seconds for Uruguay to dull Polish optimism as a long ball up

COURTESY OF WIKIMEDIA COMMONS

Uruguay strikers Cavani and Suárez proved too hot to handle for the White Eagles

21

Marcin Gortat is playing inspired this season players to have been included on the ballot for the NBA’s 2013 All-Star game. Voting for the final roster ends on Jan-

uary 14, with the players who make the squads announced three days later on January 17.

David Ingham

22

LIFESTYLE

www.wbj.pl

Photography auction

NOVEMBER 19-25, 2012

Concert

Marilyn Monroe auction Rock giants raises z∏.2.4 million Muse November 23 Atlas Arena ¸ódê

Over 230 photos of the late film star were on sale at a Warsaw auction house

solo, feeling like a modernday version of some of Queen’s work.

In a show that promises to be bigger and better than anything they’ve done before, fans can also expect to hear the best of the band’s earlier work including “Plug In Baby” and “Supermassive Black Hole.”

David Ingham

For more information, log on to atlasarena.pl

The collection of Milton Greene photographs was put on sale by the Polish Treasury, which obtained them in 1995 as part of a debt settlement with a Polish foreign-debt

management agency. Many of the 4,000 images included in the collection were not put on sale and are still in the possession of the Treasury.

David Ingham

Matt Bellamy of Muse

Something for everyone WBJ’s restaurant review feature Lilla Weneda Warsaw Marriott Hotel Al. Jerozolimskie 65/79 Traditionally speaking, brunch was once a small meal sandwiched between breakfast and lunch, but if WBJ’s visit to the Marriott Hotel is anything to go by, then small certainly wouldn’t be the word we’d use.

Located in the Lilla Weneda restaurant on the second floor of one of Warsaw’s most iconic buildings, this brunch takes place every Sunday from 12:30-4 pm, allowing those in attendance to drink and eat as much as they like, with something for every palate among the hot and cold dishes on offer.

After being seated by the large window, which provides excellent views of the Palace of Culture and Science, we decided to start with the light option of sushi, which is available both ready-made or prepared to order by a trained chef. Having tried some salmon and tuna sashimi we then sought the expertise of the chef and asked

COURTESY OF WARSAW MARRIOTT HOTEL

This photo was sold for z∏.60,000, or just over $18,000

COURTESY OF WIKIMEDIA COMMONS

COURTESY OF FINE ART COMMUNICATIONS

An auction of Marilyn Monroe photos taken by celebrity photographer Milton Greene went on sale in Warsaw this November.

The sale, which took place at the Dom Aukcyjny Desa Unicum auction house, attracted some 600 bidders, with the most valuable photograph being a black and white portrait of a barefoot Ms Monroe posing in a tutu. The photo went under the hammer for z∏.60,000 – significantly above the piece’s asking price.

The second-biggest seller was an iconic photo from a shoot entitled the “Black Session” which raised z∏.50,000.

Other photographs of famous Hollywood legends by Milton Greene, including ones of Liza Minnelli, Marlene Dietrich, Grace Kelly and Audrey Hepburn, were also sold at the auction, which attracted bidders from as far a field as Ecuador and Saudi Arabia.

British rock behemoths Muse are coming to Poland as part of a European tour to promote their sixth album “The 2nd Law.” Since forming back in 1994 the three piece, which consists of Matt Bellamy on guitar and vocals, Christopher Wolstenholme on bass and Dominic Howard on drums, has gone

on to be one of the world’s biggest bands. They have now sold more than 15 million albums world wide and cracked the US market in the process, something that has eluded many British rock outfits in recent years.

Their latest release, which is their first for three years, has seen the band tackle a more eclectic array of sounds with recent single “Madness,” with its Brian May-influenced

for a roll of butter fish maki, which was made in no time at all and tasted exquisite.

This was followed by traditional warm dishes such as roast duck, eggs Benedict with salmon, roasted winter vegetables, as well as a spiced lamb chop from the Indian section, which also includes curry and basmati rice.

Then it was on to the pasta chef, who was more than happy to cook up a dish of our choice, with spaghetti, gnocchi or penne, mixed seafood or meat, and a wide range of other ingredients. We plumped for a seafood penne cooked in white wine, with garlic, onions, and chili. It tasted superb, although it was a little filling considering what we had already consumed.

Following a drinks break which included a second glass of chilled white wine and a

cappuccino, as well as an opportunity to listen properly to a live duo singing and playing Polish and English-language hits on a piano, we took the advice of one of the many helpful staff and went for a small steak cooked by a chef who stood over a hot plate, with chicken and pierogi the other grilled options available.

This left little room to sample the amazing array of deserts, although we did try a miniature creme brulee which was light inside and crisp on top, but unfortunately the hot apple pie and various other sweet treats will have to wait for another day.

And with five-star service, perfect views of the city and beautifully prepared dishes, this is certainly a brunch we’ll be visiting again in the future.

David Ingham

LAST WORD

NOVEMBER 19-25, 2012

www.wbj.pl

23

Tech Eye

Good games for the elevatorpocalypse

The best thing you can do in that situation is find a corner and mark your territory to keep the rat-dog at bay. Then play games on your smartphone for as long as the battery holds out. Games like Angry Birds Star Wars from Rovio.

When this game was announced in early October, there was a great disturbance in the Internet, as if millions of nerds suddenly cried out in e-terror. “Oh noes!” they wailed, “George

Beach Buggy Blitz

without paying a cent.

A word of warning – Beach Buggy Blitz has lovely graphics, but they could tax an underpowered device.

The last game we’re Oscura talking about this week is Oscura, a darkly gorgeous 2D platformer from MTV Networks. (For the uneducated, a platformer is a game with lots of jumping. And, if you’re old and your reflexes suck, like Techeye, lots of dying.) You can get it for iOS or Android devices for around $1.99.

Wait ... did we say darkly gorgeous?

Sorry, we meant lushly gothic, with a tinge of steampunk.

There’s a story to Oscura, something about a lighthouse keeper fending off the minions of darkness, but story takes COURTESY OF MTV NETWORKS

close be with you.” (Sorry, had to be done.)

Anyway, Angry Birds Star Wars is available for iOS, Windows Phone 8 and Android devices with prices ranging from free (Android) to $2.99 (HD version for iPad).

Another fun game to play while you’re waiting to be rescued is Beach Buggy Blitz, a racing title from California-based developer Vector Unit.

It has beaches. It has buggies. And yes, it has blitzes, usually involving collisions with seagulls and crabs. (Seagull blitzing is particularly popular with kids, by the way.)

Beach Buggy Blitz is free to play on iOS and Android devices. There’s a cash shop, where you can buy ingame coins (used for vehicle unlocks, upgrades, power-ups and paint jobs), but you can play the game normally

COURTESY OF VECTOR UNIT

Angry Birds Star Wars

Lucas has turned to the Dark Swine!”

And they were right.

But you know what? The Finnish developer’s marriage of its insanely successful, bird-on-pig physics game with George Lucas’ Disney’s moneyminting multimedia empire ain’t half bad.

Indeed, Techeye has never been a big fan of the original game.

But Angry Birds Star Wars artfully combines the familiar plot of the “Star Wars” films with a mix of core and new gaming mechanics. Levels, of which there are 80+ (spanning the plot of the first film), refreshingly alternate between terrestrial environments and Angry Birds Space’s gravity fields.

Rovio’s practice is to release substantial free updates for its new games, and you can expect the same here. As for performance, the game runs very smoothly, at least on newer devices. To owners of outdated hardware all we can say is: “may the force COURTESY OF ROVIO

If you’re ever trapped in an elevator with a crazy old woman and her psychotic rat-dog of a pet, try not to make eye contact. Fake a sub-par IQ. And never, ever make small talk. It doesn’t end well.

a back seat to art direction and gameplay.

Here’s how it goes when Techeye plays: jump, dodge, jump some more, die, jump, die, jump, die, jump and dodge, die, scream and nearly break the phone in frustration. Is it fun? Sure, but the rich color palate and quirky aesthetics make the game. Without those it’s just an average platformer.

Also, given how often your character in Oscura gets chewed up by gears or impaled on spikes, it might not be the best game to play while imprisoned in an elevator with a pair of insane lifeforms. On the other hand, it’s better than making small talk. ●

Ever turned to the Dark Swine? Let us know: techeye.wbj@gmail.com

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

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

Fibak Gallery ul. Krakowskie PrzedmieÊcie 5 www.galeriafibak.pl

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.

Galeria 022, DAP, Lufcik pl ul. Mazowiecka 11a www.owzpap.pl Le Guern Gallery ul. Widok 8, Galeria 65 www.leguern.pl ul. Bema 65 www.galeria65.com Museum of Galeria Appendix 2 Independence ul. Bia∏ostocka 9 Aleja SolidarnoÊci 62 www.appendix2.com www.muzeumniepodleglo sci.art.pl Galeria Asymetria ul. Nowogrodzka 18a National Museum in www.asymetria.eu Warsaw Al. Jerozolimskie 3 Galeria Foksal ul. Foksal 1-4 www.mnw.art.pl www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

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

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

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