BizPoland Magazine - April 2012 by BiznesPolska/CEE Business Media

April 2012 vol. 4 no. 3(27)

Poland looks East Dubai, Doha, Riyadh and Mumbai are top destinations for high-level business and political delegations in April and May, as Poland broadens its search for investment partners, capital and trade networks

Equities:

EU Budget:

Real Estate:

Proﬁts up 44% in Q4

“Big money” expected – 68-80 billion euro for Poland

IVG to raise another Euro 100-200 million to invest in Poland

p. 4–5

p. 7

p. 8–9

April Equities 4–5

Profits up 44% in Q4

Warsaw exchange remains Europe’s IPO leader 7

EU Budget “Big money” expected – 68-80 billion euro for Poland under next EU budget period

Property/Tenants Corner 8–9

IVG fund manager sees long-term strength in Poland’s commercial real sector

8, 10–11

Real Estate Briefs News 12–14 FDI News 15–17 Chambers of Commerce News Car Review 18–19 BMW’s 525d – Energy regeneration and James Bond features

20 22

Events Business Calendar Nearly 500 retailers and FMCG sector guests at Poland & CEE Retail Summit

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Equities

Proﬁts up 44% in Q4 Warsaw Stock Exchange companies report aggregate profit of 15.5 billion pln – but results skewed by one-off events. The relatively good economic situation in Poland meant that about 75% of companies listed on the Warsaw Stock Exchange recorded revenue growth in 2011. The largest companies fared the best, and yet the overall numbers were strongly influenced by a number of one-off events. As financial numbers of WSE-listed firms have been published recently, the aggregate net profit of enterprises listed on the Warsaw Stock Exchange for Q4 2011 was 15.5 billion pln, an improvement of 4.7 billion pln from the previous year’s period. The largest companies (included in the WIG20 index) earned 11 billion pln in the fourth quarter, an increase of 44% (or 3.4 billion pln more) than the previous year’s period. The financial results for last quarter were affected by a number of significant oneoff events. Three companies (PKN Orlen,

Banks healthy but need financing Banks in Poland have a “comfortable situation in these market conditions” as they have a capital surplus, with their combined solvency ratio at 13 percent, or more than the required 8 percent, said Wojciech Kwasniak, head of the banking regulator, said. Many Polish banks remain vulnerable in part because of their reliance on funding from capital-squeezed parent banks in western Europe. Consequently, Poland’s biggest banks are turning to the bond market for the first time in years to make up for the potential shortfall. The regulator will try to protect banks from a “sudden decrease” in funding from foreign parents and encourage lenders to seek long-term financing, Kwasniak said. The watchdog will work on changes to current regulations to make access to such financing easier, Kwasniak said. For example, Commerzbank AG, the parent company of BRE Bank SA, has loans outstanding of 27 billion pln at year-end 2011 – which is equal to 2.2 times BRE Bank’s total market value. Similarly challenged is Belgium’s KBC Group, which has provided 12 billion pln

KGHM and PGE) accounted for more than 6 billion pln profit as a result of the sale of Polkomtel, and Emperia recorded a more than 600 million gain on the sale Tradisu, a significant part of their business. These factors meant that the aggregate net profit growth of companies listed on the Stock Exchange was significantly higher than the growth of operating profit (up just 1 percent) and revenues (up 23 per cent).

The banking sector had another good quarter and a record year. Banks, led by state-controlled PKO Bank Polski SA and UniCredit SpA’s Bank Pekao SA, increased their total profit 37 percent to 15.7 billion zloty for the full year 2011 on stronger demand for loans, the bank’s main source of income. Total loans, driven by lending to companies, jumped 15 percent to 800 billion pln in 2011, after a 9 percent increase in 2010, according to the financial regulator. Polish banks’ combined profit in 2012 will probably be near the 2011 record as the country’s expanding economy spurs loan growth, Wojciech Kwasniak, head of the banking regulator, said.

in financing to its subsidiary Kredyt Bank SA, or 3.7 times Kredyt Bank’s market value. BRE may issue Eurobonds for the first time in eight years. Banco Santander SA’s Bank Zachodni WBK SA may also tap the Eurobond markets in 2012. Banks’ margins have also been squeezed by being forced by the regulator to reduce their foreign-currency loan portfolios. Banks have had several years of strong profits on the back of the spreads offered by their mortgage portfolios, which have been stuffed with Swiss franc- denominated mortgages. That came to a halt in 2011 as the Swiss currency strengthened dramatically in summer 2011 and regulators moved in to reduce the risks to the Polish banking sector. The Warsaw WIG Banking Index was down 22% in 2011, but has recovered about 8% in 2012. The financial regulator PFSA also said that most banks in 2012 plan to increase the scale of operations, by increasing total assets by around 5 percent. Of the banks surveyed, only eight plan to pay dividends for a total of 5.14 billion pln, meaning that retained capital in the banking sector will increase by about 8 percent by the end of 2012. ■

“The Polish banking industry faces a good and stable year,” Kwasniak said. “Banks are well-capitalized and will have a chance to continue steady growth after retaining all profits or a substantial part of last year’s profits.” The banking industry’s total assets may climb about 5 percent this year after a 12 percent jump in 2011, said Kwasniak. Corporate credits surged 20 percent in 2011, while loans to individuals increased 12 percent. “We’re seeing a shift of the industry’s activity to providing more financing for companies than for individuals,”Kwasniak said.

Construction sector still weak On the other hand, the largest construction companies had a bad quarter, and most of them presented results worse than the previous year. Polimex-Mostostal booked a net profit of 60 mln pln, mainly due to one-off accounting and tax events. Adjusted profits for the group of about only 3 million pln were a negative surprise and disappointed investors. PBG, struggling to restructure, earned 31 million pln in Q4, as expected, but this was down more than 60 percent from the previous year. Mostostal fared worse, reporting a 111 million pln net loss, more than 40 million pln worse than expected. Some firms bucked the trend, including Budimex, booking 67 million pln net profit, ahead of analysts expectations, and better by 11% than its 2010 numbers.

Mining and Extraction - 180-percent increase in net proﬁt Mining companies had a great year, reporting aggregate profits up 180 percent, to 4.7 billion pln. The biggest mining firm in Poland, KGHM, had a bumper year, increasing net profits by nearly 200% to 3.5 billion pln. The company benefited from its one-off sale of mobile telecoms firm Polkomtel, and got a profit kicker from high global prices of copper and silver. JSW reported a 1 billion pln net profit, up 170% from 2010, but relatively flat revenue numbers and build-up in inventories has hurt the stock. Also, the firm’s results were skewed by one-off profits, related to tax credits and reduction of debts related to an employee shareholding position. Bogdanka booked 133 million pln net profit (around 60 million from the reversal of provisions, as in the case of JSW),

April 2012

www.bizpoland.pl with very good production volumes in the fourth quarter of 2011 and analysts expect positive production volumes for 2012.

Strength in Retailing Within the strong retail sector, LPP SA reported exceptionally strong numbers. In the fourth quarter of 2011 LPP achieved a net profit of 129 million pln, about 44 percent more than in 2010, on the back of

Dairy Export Records While Polish food exports continue to grow at a healthy pace, it was another record year for Poland’s dairy producers. Polish dairy exports amounted to 1.36 billion euros, due to increased world prices of dairy products. Dairy imports also increased - by 23 percent - to 474.3 million euros. The balance of trade in dairy products remained positive for Poland – up to 888 million euros versus 800 million euros in 2010 a year earlier, according to the Foundation of Assistance Programmes for Agriculture (FAMMU / FAPA). The good results were positively impacted by global price increases for dairy products and high demand. While the value of Polish

Equities strong same-store sales, expansion of its retail network, and continued cost controls, as it continues to source in low-cost countries such as China. Synthos, a producer of synthetic rubber, had a surprisingly strong Q4 also, reporting profit of 274 million pln. In summary, for the fourth quarter of 2011, Polish listed companies delivered good financial results. It is encouraging

dairy exports increased by 15 percent in 2011, volume declined by 1.9 percent. Polish dairy products were sold mainly to European Union countries. But due to the increased demand for dairy products in Asia, the Middle East and Africa, Poland has signiﬁcantly increased sales of milk powder and whey to Algeria, China, Indonesia and Malaysia. Last year, the most important export item remained cheese and curd, and the value of exports increased by about 10 percent to over 483 million euros. Their share in exports of dairy industry fell from about 37 percent to 35.5 percent in value terms. The second most important export product of the dairy sector was mainly skimmed

that about 75 percent of them reported increased revenues, but only 41 percent managed to increase their operating profits. The net results were strongly affected by a number of one-off events. While generalizations are usually prone to error, we can say that the aggregate net profit results of the listed companies are disappointing, given the relatively strong condition of the ■ Polish economy.

milk (SMP), which reached 250 million euro in exports, an increase of 13 percent from the previous year. While volume of liquid milk and cream in fact declined, revenue increased by 18 percent, to 190 million euros. The value of exports of yogurts and keﬁrs decreased by 2 percent, to 122 million euros, while exports of whey increased more than 32 percent. By far the largest increase in exports was recorded in the case of butter, with volumes up 25 percent, reaching a total export value of 133.5 million euros, and export value surging 55 percent. In 2011, the share of total exports of dairy products within the agri-food sector rose to 9 percent compared to 8.7 percent in 2010. ■

An annual investment guide to Warsaw Stock Exchangelisted companies for foreign investors. » In English language. » Proﬁles of the Top 250 WSElisted ﬁrms. » The publication targets foreign institutional investors, as well as large private investors. » Distribution at CEE IPO Summit, 30-31 May, Warsaw. 5

2012 April

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Equities

Warsaw exchange remains Europe’s IPO leader 25 IPOs in Q1 tops London; IPO value in 4th place According to the latest quarterly report PwC IPO Watch Europe, which covers the number and value of initial public offerings (IPOs) on European exchanges, the Warsaw Stock Exchange once again ranked #1 in Europe by the number of IPOs. There were 25 IPOs on the WSE in Q1 2012, including 4 IPOs on the Main Market and 21 IPOs on NewConnect. By the value of IPOs in Q1 2012, the Warsaw Stock Exchange with EUR 14 million ranked #4 in Europe after NYSE Euronext (EUR 975 million), the Swiss Exchange (EUR 681 million) and the London Stock Exchange Group (EUR 621 million). The number of IPOs on the WSE’s two markets decreased sharply compared to both Q1 2011 (45 IPOs: 7 on the Main Market and 38 on NewConnect) and Q4 2011 (42 IPOs: 4 on the Main Market and 38 on NewConnect). The total value of IPOs on the WSE in Q1 2012 was similar to the value reported in Q4 2011 (EUR 15 million) but it was more than nine times lower compared to Q1 2011.

The biggest IPO on the WSE in the first quarter of 2012 was the IPO of Grupa Nokaut on the Main Market worth EUR 7.5 million (new technologies sector), followed by IPOs on the alternative market: Korporacja Budowlana Kopahaus (EUR 1.0 million, construction and construction materials sector) and Modecom (EUR

0.7 million, new technologies sector). The average value of an IPO on the WSE in Q1 2012 was EUR 700,000. More than half of all IPOs in Q1 2012 were companies active in the new technologies sector, followed by the real estate sector and the industrial products and ser■ vices sector (4 IPOs each).

Table 1. Number and value of IPOs on European exchanges in Q1 2012 (both alternative and regulated markets) Exchange

Number of IPOs

Value of IPOs (EUR mln)

WSE

London Stock Exchange Group

621

NYSE Euronext

975

Spain (BME)

Nasdaq OMX

SIX Swiss

681

Luxembourg

Deutsche Boerse

Oslo

Wiener Boerse

Borsa Italiana

Source: PwC, IPO Watch Europe, Q1 2012 report

Table 2. Number and value of IPOs on European exchanges in Q1 2012 v. Q4 2011 and Q1 2011 (jointly alternative and regulated markets, ranked by the number of IPOs). Q1 2012 Exchange

Q12011

Number of IPOs

Value (€ mn)

WSE

LSE Group

NYSE Euronext

Exchange

Q4 2011 Number of IPOs

Value (€ mn)

Exchange

Number of IPOs

Value (€ mn)

WSE

121

WSE

621

LSE Group

1971

LSE Group

806

975

Luxembourg

110

Nasdaq OMX

Spain (BME)

NYSE Euronext

Deutsche Boerse

Nasdaq OMX

Deutsche Boerse

244

Oslo

SIX Swiss

681

Oslo

468

NYSE Euronext

Luxembourg

Nasdaq OMX

Luxembourg

Deutsche Boerse

SIX Swiss

Wiener Boerse

Oslo

BME

SIX Swiss

Wiener Boerse

366

BME

Source: PwC, IPO Watch Europe, Q1 2012, Q1 2011, Q4 2011 reports

April 2012

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EU Budget

“Big money” expected – 68-80 billion euro for Poland under next EU budget period The new EU budget for the seven-year period 2014-2020 is under intense negotiations, and Poland’s portion will likely be in the range of 68 to 80 billion euro, according to Elżbieta Bieńkowska, the Minister for Regional Development.

She stressed that the government wants to prepare businesses and local governments as best possible to absorb these funds. In late June of 2011, the European Commission proposed that the next 7-year EU budget be raised 5% from the prior period, to 972 billion euro. Key priorities for the EU budget negotiators are agricultural policy funds (371.7 billion euro) and cohesion funds (376 billion euro), increases in research and innovation, and integration of neighboring regions and immigration. ■

“Poland can expect big money from the next budget”, she said at a meeting in early April. While the recent turmoil within the EU has led skeptics to expect substantially less funds, Bienkowska’s comments suggest that the amount of funds available to Poland in the next period will actually increase rather than decrease. In the last seven-year EU budget, which ends 2013, Poland was allocated 68 billion euro.

Budget negotiations are underway in Brussels, and are expected to continue til the end of 2012. Bienkowska cautioned, however, that subsidies from the European Union are likely to end after this budget period. “It will likely be the last significant subsidies from the EU for the Polish budget”, she said.

2012 April

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Property/Tenants Corner

IVG fund manager sees long-term strength in Poland’s commercial real sector Speaking on the occasion of the presentation of a new study of the Polish commercial real estate market, Dr. Thomas Beyerle laid out the reasoning for IVG Immobilien’s focus on Warsaw. IVG’s Warschau Fonds was set up in the second quarter of 2011 to invest in topquality office buildings in Poland’s capital. The fund has raised 100 million euro so far, mostly from institutional investors such as pension and insurance funds, and intends to expand further to 200-300 million euro, according to Maciej Zajdel, Managing Director of IVG Poland. “Warsaw was one of the most liquid European markets in 2011, with nearly 2 billion euro of commercial real estate deals done, which is just behind Berlin”, said Beyerle. “There is a high acceptance of Poland real estate by international

Real Estate in Brief German retailer launches ﬁrst of 100 planned stores in Poland German discount clothing and non-food retailer KIK opened its ﬁrst store in Poland on 15 March 2012 in Sroda Wielkopolska near Poznan. The company intends to open 15-20 stores in Poland by the end of 2012, and the chain is to open 100 locations in the coming years. KIK’s stores are to be opened in cities with populations of at least 10,000 and will have between 500 and 2,000 sm. Logistics in Poland will be serviced by the company’s central warehouse in Bonen, Germany. KIK’s entrance into Poland is part of its overall European expansion strategy, which includes a long-term goal of 4,000 stores across Europe within four years.

IVG’s team: Maciej Zajdel, Dr. Thomas Beyerle, and Przemyslaw Lachmaniuk

banks and lending margins are lower here than in the UK. German banks view the Warsaw office market as a market that it is not a problem to their credit exposure limits”, he said. Zajdel cited IVG’s sale of Horizon Plaza at the depths of the financial crisis in 2009 as proof of IVG’s focus

on highly-liquid, core properties in capital cities. Beyerle also said that the classification of Poland as “CEE” is “out-of-date - Poland is a much more dynamic market and larger than other countries in the region.” Beyerle said that “Poland is the

after obtaining from the Cooperative, ownership or perpetual usufruct right to the property. It’s about an area of nearly 0.9 hectares, located in Warsaw at ul. Grojecka 95/95a, currently occupied by two pavilions with an area of 2874 square meters, and 2939 sqm. “The parties have agreed that within 60 days of receipt by the Cooperative of the right of

perpetual use of property, we will enter into a preliminary agreement on the transfer at market value for BBI Development NFI SA the right to the property.”

continued on page 10

Developer to change the face of iconic open-air shopping area

Hala Banacha, one of the oldest markets in Warsaw, will change its face. BBI Development entered into a cooperative agreement with a Warsaw “spoldzielnia” to overhaul the complex. The plan is to construct a building with office and retail components, and residential,

April 2012

www.bizpoland.pl only country amongst CEE that is in the pool of allowable investments from large institutional investors.” Further evidence of Warsaw’s office market reaching a level of maturity is the recent interest in investment from several major sovereign wealth funds from the Gulf States. IVG plans to expand its target investments from offices into retail investments, including retail parks, shopping centres, and other types of retail assets). Warsaw has plenty of room for more Class A office space, according to Beyerle, who is Managing Director of Corporate Sustainability & Research at IVG Immobilien AG, and based in Bonn. “We saw a very strong recovery in 2010 and 2011, after the sharp downturn in 2009, on the Warsaw office market, leading to a clear reduction in vacancies and a strong recovery in rent levels. The market might become more balanced in 2012 and 2013 as several skyscrapers hit the market to absorb strong demand.” He also sees opportunities outside the capital in cities such as Wroclaw and Krakow, citing the fast-growing BPO/ Outsourcing sector as a major factor in office space occupancy. Following are key highlights of IVG’s indepth research on the Polish commercial real estate market:

Property/Tenants Corner Poland highly favoured by international investors Poland has diverged significantly from its neighbours in the south and east in terms of market trends and size. The prospects that the success story will continue are good, considering the moderate national debt, essential improvements to the transportation infrastructure and the large pool of cheap and skilled labour. At present, many investors believe that investments in the Polish real-estate market are justified by the pace of growth of the country’s economy and, consequently, its commercial real-estate markets. Other investors cite stability as a major reason for a buy recommendation.

Warsaw office rental market experiencing a steep upswing Since mid 2010, recovery has led to a clear reduction in vacancies and a strong recovery in rent levels. Measured in terms of rental trends, the Warsaw market remains highly cyclical by European standards. According to a forecast by IVG Research, the rental market is set to return to a more stable situation in the next two years: the expected high demand for office space in 2012 and especially 2013 will possibly be met by a large number of new construction projects.

BPO Outsourcing driving demand for office space beyond Warsaw Rising outsourcing of processes by international companies to Polish subsidiaries or specialised service providers has contributed to the increasing maturity of other office rental markets in large cities other than Warsaw. The limited, albeit dynamically increasing capacity of these office locations means market development volatility is very pronounced. “However,

IVG Immobilien AG – by the numbers: In the fund segment IVG is the leading provider of tailored property funds for institutional investors. 22 billion euro under management. Number 5 ranking among all European Asset Managers. Largest investors are insurance funds and pension funds. Property – Investment Purchase, value optimization, and sale of ofﬁce buildings. Development of office buildings in selected European growth regions, such as Munich, Berlin, Paris, and Warsaw. Portfolio ﬁgures: • Number of Properties: 234, including Place Vendôme in Paris • Market Value (€): 4 billion

2012 April

• • • •

Space (sqm): 2,068,500 Annual Rental Income (€): 246 million Occupancy Rate (%): 89.1 NOI yield (%): 5.2

Property – Development Selected development of office properties, with strong focus on “Green Building” developments; Strategic property repositioning; Risk mitigation by forward purchase / pre-letting; Ongoing integration within the platform as supplier for fund products. Portfolio ﬁgures: • Number of Developments: 6, including THE SQUAIRE in Frankfurt (the largest ofﬁce building development in Europe) • Lettable Space (sqm): 199,700 • Occupancy Rate (%): 68 • Market Value (€): ca. 810 million

entry is made more attractive to property investors through high initial yields for prime properties from 7.25% to 7.5%”, adds Beyerle. Consequently, there will continue to be a number of suitable investment opportunities on the market in 2012.

Non-green buildings face loss of value in next 5-10 years Buildings who fail to upgrade to “green” will depreciate at a faster rate in the coming years, as investors – and tenants – insist on green buildings with renewable and low-cost energy solutions that also are attractive to their employees. Beyerle predicted that the Warsaw office market will become a rather “boring” market in the coming years, hastening to add that this is a major complement and testament to the growing security, depth and stability of the market for international ■ institutional investors. Property – Funds Management IVG Institutional Funds is the leading provider and manager of “Immobilien-Spezialfonds” in Germany. Market leader for institutional investors funds in Germany with market share of about 23%. Management of nearly 40 funds with more than 100 investors. Focus on core/+ properties and infrastructure (caverns) IVG Private Funds one of the largest closedend real estate funds initiator in Germany, with 12 funds with about 60,000 private investors. Recent fund initiatives: 1 IVG Protect Fund Q2 2009 2 IVG Premium Green Fund Q2 2010 3 IVG Paris Fund Q1 2011 4 IVG Warschau Fonds Q2 2011 5 Silberturm Q4 2011 ■

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Property/Tenants Corner continued from page 8

32000 sm development on postindustrial land near airport JS Invest is planning to build a mixed-use complex, between ul. Łopuszańska and ul. Porcelanowa in Warsaw on an area of more than 32,000 sqm. The project calls for seven buildings with parking facillities, garages and hotels. The decrepit site is currently occupied by a vehicle body shop, warehouses, and a motorbike and boat repair shop. The plots are not included in the local zoning plan. JS Invest is being advised by the Gardocki i Partnerzy Adwokaci i Radcowie Prawni law ﬁrm. The regional director for environmental protection in Warsaw has ruled that the environmental impact assessment need not be carried out.

Olsztyn gets upscale apartment development OPB Development will build apartments at ul. Armii Krajowej in Olsztyn, with prices starting at 5200pln/sm. The developer plans more than 150 apartments ranging in size from 38 to 96 sqm. (two to four rooms), eight retail and service units. OPB Development Company was founded in 1989 in Ostroda, and focuses on the areas of Warmia and Mazury.

Bank to build HQ in Gdansk for 80 million pln Gdansk will be the location of Bank BPH’s new headquarters, which it plans to move into in January 2014. The 80 million pln complex will consist of three buildings, and a total of 20,000 sm. “We made a decision on the selection of

the new office, because we’re currently working in ﬁve different locations. This new office will allow everyone to congregate in one location”, said BPH’s VP Krzysztof Nowaczewski.

Developer in major Lodz mixed-use revitalization Piotrkowska 96 is the newest project of Verity Development, which will redevelop one of the houses on the most-famous street of Lodz. The project will be a mix of residential, office and commercial. The original design was to be over 1800 square meters of offices and 17 apartments ranging from 40 to 140 sqm. The investor is now moving to sign a new contract with the architect. The historic house will contain retail services on the ground level and first floor, and offices on upper floors. The plan also will have apartments ranging from 56 to 277 sqm. “The investment at 96 Piotrkowska will probably begin next spring”, said Bartłomiej Tomiczek. “Although there was interest in apartments, we decided to add offices to the mix, thereby reducing the risk”, he added. Permission to revitalize the historic building was granted years ago, in December 2008. The house is located on one of the most famous streets in Lodz, once a lively venue day and night, now somewhat impoverished because of its proximity to the modern and popular Manufaktura shopping centre.

Global IT giant opens 2 new offices, plans several more IBM, which this week announced the opening of two regional sales offices in Katowice and Wroclaw, plans further openings in the coming months, according to statements by the

company. “In recognition of the continued importance of the Polish market for IBM and to ensure the highest level of service to our customers and partners, we intend to strengthen our network of branches in many strategic locations. This week we opened a new regional sales offices in Katowice and Wroclaw, and we plan to open similar facilities in other Polish cities in the coming months”, said Marcin Gajdziński of IBM Poland. IBM announced the opening of a regional office in Katowice, which will cover the operating region of Silesia. A day later, IBM announced the commercial launch of a regional office in Wroclaw.

Sports company to invest 100 mln zł in hotels and offices on the Vistula

The Tides company, established by the Warsaw Rowing Association (WTW) and a closed-end fund, within two years plans to develop a hotel and office building and a modern kayaking base at Warsaw’s Wisłostrada, which runs parallel and adjacent to the Wisla river. The complex is to consist of two buildings - the headquarters of WTW and a six-ﬂoor office-hotel, to contain 11,000 sm of office space. The estimated cost is 100 million pln. Architectural design work has been done by Kurylowicz & Associates, and DTZ is the leasing agent.

Developer to build new headquarters of the Jewish Theatre - and offices In place of the Jewish Theatre in Warsaw at ul. Grzybowska, a new 80-meter office building will be built, according to Gazeta Wyborcza. The owner of the building, Socio-Cultural Association of Jews in Poland (Towarzystwo Społeczno-Kulturalne Żydów w Polsce) is just after negotiations with the developer, is said to be Ghelamco. The project will be built in two stages so as not to interrupt the work of the theater. Ghelamco will ﬁrst construct the new headquarters of the Jewish Theatre, and only after that will proceed with implementation of an office building. build a theater seat, which is intended to absorb tens of millions zł.

Ministry in privatization deal, retail development planned

In the last week of March, the Treasury Ministry signed an agreement with Retail Provider Wrocław for the sale of 85% of coach operator

April 2012

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Property/Tenants Corner Decrepit section of Warsaw gets boost from major residential development The factory area Ursus may soon be getting a facelift. Victoria Dom plans to build 99 apartments on ul. Skoroszewska, at average price per sqm of 6500. The developer has planned just one building, with two connected wings surrounding the courtyard. The smallest apartment in this project will have 34 sqm., the largest - 79 square meters. Construction will begin in April. The premises are to be ready by the end of 2013. To date, Victoria Dom has developed mainly on the right side of the river - in Wawer and Białołęka, and has developed a total of 1400 homes and ﬂats with a total ﬂoor area of about 130,000 sqm.

Wroclaw lands high-tech and highproﬁle research laboratory

PKS Siedlce. The ﬁrm won the public tender to buy PKS – at a price of 9.14 million pln - and intends to build a bus station in Siedlce with a retail area of 4,000 sqm. Additionally it is planning to develop a further 15,000 sqm of retail space on ul. Partyzantów in Siedlce. The company also has a similar investment in the city of Olsztyn.

Bank BPH employs 2800 people in Gdansk The office complex – to be called Euro Office Park - will be built seven kilometers from the center of Gdansk, in the district Jasień, which connects to the Tri-city ring road. The new center will consist of three ﬁvestorey buildings with 600 parking spaces, half underground. The ﬁrst two office buildings will be completed in July 2013, and the last in January 2014. The develop is EuroStyl, which has been on the market since 2007.

Embattled ﬁrm PBG scrambling to pay down its debts CEO Jerzy Wisniewski said that PBG is talking both to investors interested in core assets and potential buyers of non-core assets: “We are in talks with strategic investors about possibilities of entering the company. Also about the sale of companies which will not be our core business” such as PBG Erigo, Hydrobudowa, Aprivia”, he said. The firm plans to outline a new strategy for its supervisory board. “We will complete the construction of those motorways which we have in our portfolio but we aren’t competing for new contracts. The assets the group has in this area will be put on sale or used in some other form enabling debt reduction,

2012 April

and by the end of the year or in early 2013 we are planning to exit this sector”, said Wisniewski. He also said that the firm is in talks about consolidation of its debts. PBG considers its current problems “a period of temporary turbulence,” while outlook for the coming years is “good. I am sure we will reach an agreement with the banks, and I am sure that the company will be able to quickly improve cashflows after reaching settlements over select contracts.” PBG is counting on results of a new convertible bond issue to help resolve its capital constraints. Regarding it gas terminal in Swinoujscie, Wisniewski said that “this is our most important investment, we have no cash ﬂow or technical problems on this project. It will be delivered on time.” PBG is not just in “advanced talks” for select units, it has also pocketed the ﬁrst PLN 20 million of an estimated sale price of 125-130 million pln for a shopping mall Galeria Kujawska. But analysts have different opinions: “I’m betting on a strategic investor entering PBG rather than non-core assets sale because PBG Erigo, Hydrobudowa and Aprivia are quite unattractive assets, not to mention mutual guarantees at Hydrobudowa in which creditors would demand really attractive offer,” DI BRE’s equity analyst Maciej Stoklosa said. “If I were an investor I would prefer to put some EUR 100 million more on the table and buy the whole PBG, which might be an attractive takeover target for some European strategic investors,” he added. PBG is also preparing for the sale of the Skalar office building in Poznan and has already noted interest in the property.

High-tech ﬁrm Dolby Laboratories announced plans to build a new center for research and engineering art and audiovisual technology in Wroclaw. This will be another location in Europe, where experts from the sound sector will work on improvements in audio technologies. “The site selection was very difficult, because we took into account many criteria”, said Mike Rockwell, vice president of Product Technology at Dolby. “In particular it was important to ﬁnd the best engineers, but also to check the prospects of cooperation with potential partners and clients. We also discovered that Wroclaw is an important business and cultural center in central Europe and has good transport infrastructure. Thanks to these advantages, many leading technology companies have already set up operations in Wroclaw. It is undoubtedly the right choice for Dolby, thanks to access to talented engineers and growing R & D sector, which supports a number of technology leaders, including some of our partners.” ■

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FDI News Top Foreign Investors target BPO, automotive and machinery sectors In March PAIZ Polish Investment Agency closed three investment projects and started negotiations with 12 new investors. Currently PAIiIZ is running 153 investment projects jointly worth EUR 528 million that aim to create more than 35000 new jobs. In first place among the biggest investors is the United States, and this is in terms of three key metrics: the number of projects (37), the investment value (EUR 1,069 million), and employment (7233 new jobs). The United Kingdom is in second place, with16 projects worth EUR 252 million, and Germany is in third place with 15 projects worth EUR 524 million. China (10 projects), France and Japan (8 projects each) remain top investors in Poland. There are no significant changes in the list of the hottest sectors. The most popular is still the services sector: BPO accounts for 34 projects worth EUR 32.94 million, and 8087, followed by the automotive industry with 28 projects (however, in terms of investment and planned employment, automotive ranks first with EUR 1834 million and 11828 jobs). The machinery sector remains in third position with 13 projects, and expected investment of EUR 656 million. R&D projects are fourth on the list, and the chemicals sector accounts for a planned seven projects.

Industrial investor expands in Kostrzyńsko-Słubicka SEZ The Kostrzyńsko-Słubicka Special Economic Zone said its existing investor, ALUMETAL Nowa Sól Ltd. pland to

expand. The investor will develop its existing facility of scrap and aluminum dross processing and cast alloys production, with futher investment of 25 million pln. Alumetal Group is a producer of aluminum cast alloys, one of the majors in CEE. The facility in Nowa Sól is dedicated as a supplier to strategic contractors of Alumetal Group.

province is located in the middle of the east coast of China.

Go China

On April 10th 2012 the delegation of the business and authorities of Hubei headed by the Vice Governor of the province, Mr Tian Chengzong will visit Poland. PAIZ Polish Investment Agency is organizing an economic seminar and business meeting with Polish companies. Polish entrepreneurs will have the opportunity to establish cooperation with the business representatives from Hubei. Hubei province, inhabited by 60 million people, is located in central China. The population of the province’s capital, Wuhan - an important technology, education, industrial and financial center – has population of 8 million people. The major industry in the province is metallurgy, machinery and textile sector. Important agricultural products are cotton, rice and tea. The meeting will be held from 10.00 am to 1 pm.

In March the strategy supporting PolandChina economic cooperation has been launched. Go China is an initiative encouraging Polish entrepreneurs to develop business relations with Chinese partners. Aware of the huge opportunities arising from China’s dynamic economic growth, the Polish government is taking further measures to strengthen Polish-Chinese relations. Responding to “Go Global” - the concept of Chinese companies expansion abroad - the Polish side has prepared “Go China” - the coherent strategy of development of cooperation with China. The aim of Go China is to encourage the Polish entrepreneurs for expansion on Chinese market and to assist in finding Chinese business partners. The strategy, which is an initiative of the Ministry of Economy will be implemented by Polish Trade and Investment Promotion Sections in Shanghai and Beijing, the Ministry of Agriculture and Rural Development, the Ministry of Sport and Tourism, Polish Information and Foreign Investment Agency, Polish Agency for Enterprise Development and Agricultural Market Agency.

Delegation of Jiangsu province in Poland

Heilongjiang delegation visits Poland

On April 11th, 2012, the delegation of CCPIT and business representatives from the province of Jiangsu will visit Poland. PAIZ is organizing the meeting for Polish entrepreneurs which will be held form 11.30 am to 1 pm at offices of PAIZ. Jiangsu

In March, a 40-person delegation from the Chinese province of Heilongjiang participated in a 2-day economic seminar. Mr Lu Dong from Macro Euro-China Entrepreneurs Club and Mr Fu Yuanfeng from the Department of Commerce of Heilongjiang Province presented investment opportunities in the region. They underlined the analogies with Poland: the similar population and industrial traditions. The most characteristic features of the region is high forestation (unusual in China), large water resources (lakes), agricultural lands (called “the granary of China”) and large industrial plants which manufacture more than a half of all rail wagons produced in China. The direct location of the northern province near the border with Russia gives the opportunity of cooperation with CEE.

Vice Governor of Hubei province in Poland

Japanese metalworking ﬁrm expands

Yamazaki Mazak Technology Centre, a new technology centre, to be built by Yamazaki Mazak Corporation, will be located in Katowice, and will become not only the distribution and service centre for

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FDI News Kuwait, Oman and United Arab Emirates the country forms the Gulf Cooperation Council (GCC), which aims for economic integration of the region. Qatar, which until recently was under the British protectorate, is gradually though rapidly moving towards a diversified economy. Polish-Qatar economic relations can be described as moderate, but have a solid foundation for further development. The breakthrough in mutual cooperation will be in 2014 when the first deliveries of Qatar’s LNG to the Świnoujście terminal are planned. Further investment in Poland is expected. The flagship investment fund Qatar Investment Authority recently announced the purchase of the TP SA office complex in Warsaw, with a total area of almost 44,00 square metres.

400 million pln German investment in propulsion and power the firm’s machine tools, but also a place where the company’s latest technologies in metalworking will be implemented. Polish specialists will get professional training. The value of the investment is PLN 15.7 million. The company will immediately hire 33 employees, mainly electrical engineers, mechanics, mechatronics and machining technologists.

Qatar market The Polish Embassy in Doha, Qatar has prepared a publication “Qatar market. A Guide for Polish entrepreneurs” - a compendium of knowledge about the terms of cooperation with Qatar. Even though Qatar is a small country (11,437 km2), it is one of the fastest growing economies in the Persian Gulf. Together with Saudi Arabia, Bahrain,

MTU Polska, a part of German concern Tognum specializing in propulsion and power solutions, is to invest over EUR 90 million in a new site close to the city of Stargard Szczeciński in northwest Poland. In addition, Tognum is expanding its development capacity. In Stargard, the continued on page 14

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engineers and designers will develop and test engine components and electronic modules manufactured in the new plant that will be earmarked for engine control and automation systems. The facility will be equipped with new technologies - innovative and unique not only in Poland but also on a European scale. From the middle of 2013, production output from the future plant in Stargard Szczeciński will primarily include crankcases, cylinder heads and large-volume parts for Tognum’s MTU brand Series 2000 and 4000 engines. They will be delivered to the assembly lines of the lead plant in Friedrichshafen (Germany) and to the plants in Aiken (USA) and Suzhou (China), where engines, drive and propulsion systems and energy systems are manufactured for the Tognum Group. By the time the plant becomes fully operational in 2015 as scheduled, the Tognum Group will have increased its workforce to over 200 employees. MTU Polska has already purchased a 20 hectare site for the erection of the plant near Stargard Szczeciński. The proximity to logistics hubs, such as major seaports, was a key factor in favour of Stargard as the new location.

Bayer sets up a new Financial/ Accounting Center in Gdańsk

number of R&D and Knowledge Process Outsourcing centers. It is the third BPO/ SSC investment in Tri-City this year.

Europe’s biggest biomass plantation in Poland International Paper has signed an agreement with GreenWood Resources to develop a biomass plantation in Pomerania - the largest of this kind in Europe. Marcin Korolec, Minister of the Environment, said: - I am very proud that Poland was chosen for this flagship investment. I am convinced that it will be a prime example of activities enabling us to meet our ambitious European renewable energy goals and providing biomass for the paper industry. Initiatives like this will create new green jobs and simultaneously contribute to strengthening of the environment and biodiversity. The announcement follows a successful pilot project in fast growing, short rotation hybrid poplar plantations that was managed by GreenWood Resources Poland. The agreement calls for leasing land from local farmers to grow biomass in three and four year rotations. The approach offers local farmers more crop options and can improve the utilization rate of the land while securing jobs in the farming community by providing a welcome financial boost to their existing incomes. Current supplies of biomass in Poland are not sufficient to support the increasing demand from industry due to EU energy policy targets while existing Polish state policy limits the amount of forest fiber than can be used for biomass. Therefore, a new source of sustainable biomass must be developed to insure a stable supply at a reasonable cost to help Poland deliver on its EU renewable energy targets.

20 million euro on new plant in Industrial Park

Pharmaceutical giant Bayer has decided to locate its new Financial and Accounting Center in Tri-City, and plans to hire 200 workers who will be responsible fo r performing advanced financial and accounting services, such as preparing financial reports for Central Eastern Europe. TriCity competed against Tallinn, Vilnius, Wroclaw, Poznan and Katowice to win the investment. One of the key aspects that was indicated by the investor was the long-term availability of highly qualified and experienced personnel. For that reason, the investor deeply researched the Pomeranian BPO market. Special attention was put on Centers of Excellence that perform advanced processes. An additional advantage of Tri-City was the big

at as much as 150. The company has been operating in the Goleniów Industrial Park since 2007. With an area of almost 10,000 square meters, the industrial hall currently employs 60 people. The expansion will increase the space by 6,000 sm, for purpose of manufacturing fully-assembled semitrailers. With the quality confirmed by European certificates, the vehicles manufactured under the MAX Trailer brand will be standardised and compatible with European transport regulations. The semitrailer will not be longer than 13.60 meters and not wider than 2.55 meters. The main purchasers will include construction and haulage companies providing cargo services which do not require any special transport permits.

Japanese com pressor manufacturer in 128 mln pln expansion Sanden Manufacturing Poland received approval to set up in Legnicka Special Economic Zone. The investor will develop the facility in Polkowice and will purchase new equipment and expand the production hall. The plant produces compressors for automotive air conditioning and compressors components using new technologies. Sanden Manufacturing Poland will invest at least PLN 128 million. The Japanese firm operates in Legnicka Zone since 2004. Sanden Manufacturing Poland is the main compressors supplier for Volkswagen, Opel, Ford, McLaren and Aston Martin. Since 2009 every Jaguar is equipped with the compressor from Polkowice. The company manufactures over 40% of the compressors produced in Europe.

EU subsidises waste disposal plant A firm in Lubawka will receive 20 million pln from the European Regional Development Fund (in the framework of the Operational Programme “Lower Silesia” 2007-2013) to develop a waste-disposal plant, having a total cost of 28 million pln. Sanikom and 17 self-governments involved in the project will contribute 8 million pln to the project, which will service the region’s waste-disposal needs in a compost facility equipped with water and sewage pipelines built to ecological standards. Construction will start immedi■ ately.

MAX Trailer is the new brand for Belgian semitrailer producer Faymonville’s fullyassembled specialized trailers. As part of a reinvestment, 5 million euro will be spent on the construction of a new plant, which will provide employment to 36 people in the first year of its operation, with the target level of employment being estimated

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www.bizpoland.pl India Wrocław Technology Park and Technical University Prof. Maciej Chorowski, President of the Board of Wroclaw Technology Park (WTP) invited Ambassador H.E.Mrs. Monika Kapil Mohta, Counsellor Mr.Rajesh Vaishnaw and the IPCCI, represented by J J Singh, to present India and business opportunities in India for Polish companies from Wroclaw and lower Silesia. The seminar was attended by over 60 representatives of various companies from the region and Marshal’s office. H.E.Mrs. Monika Kapil Mohta presented India and the Indian economy in her address and emphasized the importance of the Indian market for Polish businesses. IPCCI president J J Singh made a presentation about the Indian economy, identifying sectors where the two countries can cooperate. In addition to a tour of the Technology Park, the Dean of Wroclaw Technology University met with Madam Ambassador, and received first hand information about the Indian students attending the university and ideas for recruiting more students from India.

Chamber of Commerce News by opening sourcing offices in India, under the leadership of Mr. Harish Lalwani, CEO. Indigo Inc is a sourcing and merchandising company based in Mumbai, Jaipur, Jodhpur and Bhopal in India, and manages global sourcing, buying and quality control, as well as managing the entire supply chain from product design and development, through raw material and factory sourcing, production planning , management, quality assurance, buying, export documentation to shipping control. At present the company is catering to large supermarket chains in Poland, by sourcing products from India, Pakistan and Bangladesh.

Canada Aviation Valley Expo to take place in Rzeszów on 10 May Dolina Lotnicza, the association of aviation enterprises in the Rzeszów region, will hold a one day exposition on 10 May. Both Polish and international firms will be present including Pratt & Whitney and Vac Aero. A delegation from the Quebec Aerospace Mission to Poland will be in attendance with representatives from Altitude Aerospace, CEL Aerospace Test Equipment, ICAM Technologies, Netur and Plafolift. The Poland-Canada Chamber of Commerce (PCCC) will be co-hosting an evening mixer and networking event.

AECOM buys DEGW to expand footprint AECOM has grown to become one of the most respected providers of professional technical and management support services. DEGW is a global market leader in workplace strategy helping their clients align their physical space with their organizational objectives. The existing range of AECOM’s services covers transportation, water & environment, buildings, oil & gas and energy.

Golder Associates brings technical solutions to Polish shale gas sector

Ambassador H.E.Mrs. Monika Kapil Mohta

The upcoming business event in Mumbai , INDIALLIA was promoted by the WTP and IPCCI. So far, seven companies have decided to participate in the Forum, scheduled for 23-25 April.

Golder Associates, working closely with both international and Polish shale gas players, has introduced their proprietary FracMan technology to fractured reservoir modelling to the Polish market. Applying their international expertise to the local environment, Golders will strive to meet the environmental and social requirements that are being drafted as well as public expectations in Poland.

Warsaw expands to Mumbai

Copper exploration gathers momentum

Indigo Global Sp. z o.o is expanding its business to India under the name Indigo Inc.

The Miedzi Copper Corporation group of companies, including Mozów, Zielona

2012 April

Góra, Ostrzeszów, Florentyna, Wilcze and Leszno, have spent over 11 million PLN on exploration work to date. Exploration activities are expanding in 2012, with an expected budget of 20 million USD. Total expected cumulative investment to 2015 by the Miedzi group may total 150 million USD. Miedzi Copper Corporation is lead by Mr. Lyle Braaten as President of the Board, and by Professor Stanisław Speczik as General Director. Mr Speczik is a former president of KGHM Polska Miedź and long serving director of the Polish Geological Institute.

Raben Sea & Air introduce intermodal transport services Raben Sea & Air, a member of the Raben Group, is introducing a new services: intermodal transport, also known as combined transport. The service integrates the carriage of goods that involve at least two different modes (e.g. rail and sea) without the handling of the goods themselves when changing modes. The first project was completed in the automotive sector.

United States US-Poland Business Summit The American Chamber of Commerce (AmCham) has confirmed a mid-June date for its US-Poland Business Summit, to be held in Warsaw. According to the official

statement released by the White House, senior level government officials from the United States and Poland will participate in the roundtable including U.S. Secretary of Commerce, John Bryson, and Prime Minister and Minister of Economy Waldemar Pawlak. Participation of Polish and U.S. business executives will be drawn from AmCham; the U.S.-Poland Business Council and PKPP Lewiatan. Prior to the business summit, the U.S. and Polish private sectors are canvassing their respective business communities to identify and prioritize business opportunities, including the following: energy cooperation: nuclear, shale, renewable; innovation: knowledge sharing, tech transfer, e-business; bi-lateral relations: trade, SME development, promotion; sectors: BPO, aviation, defense, and biotechnology. continued on page 16

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Ireland St. Patricks Day Business Mixer The Irish Chamber of Commerce held its 5th St. Patrick’s Day Business Mixer at Warsaw’s Hyatt hotel. Guests of honor were his Excellency Ambassador of Ireland, Eugene Hutchinson and Ms. Elaine Monaghan, spouse of the US Ambassador to Poland, Lee Feinstein. The US’s AmCham was a partner in the event. The evening featured Irish Dancers, great food including original Irish cheese, Guinness and Jameson whisky and a raffle with luxury prizes. The Gold Sponsor of the event was Orco Property Group, developer of Złota 44 residential tower (designed by Daniel Libeskind). At top: Irish Dancers Right: Ambassador of Ireland, Eugene Hutchinson; Dorota Dabrowski, AmCham; Kenneth Morgan, Irish Chamber of Commerce; Elaine Monaghan, spouse of the US Ambassador to Poland, Lee Feinstein Far right: Martin Drabarek, Orco Property Group; Dorota Dabrowski

Japan KEIDANREN visit to Poland On April 16th 2012 the official delegation of the Japan Business Federation Keidanren will visit Poland. The purpose of the visit is to deepen bilateral relations between Japan and Poland. The Keidanren’s visit to Poland is its first in four years. PAIZ is organizing business seminars and presentions. The seminar will be attended by the participants of the delegation, the representatives of 20 big Japanese companies including Sumitomo Corporation, Toyota Motor Corporation, Kajima and Mitsubishi Chemical Europe.

Belgium Belgian Escapade in Krakow

The Belgian Escapade is an event organised by the Embassy of Belgium and the Belgian Business Chamber, in collaboration with the Wallonia-Brussels Delegation, the Flemish Representation, and Brussels Invest & Export. This year, the event will take place from 18 - 29 April at the Sheraton Krakow Hotel, and plans include many cultural and business events such as a business mixer accompanied by a tasting of Belgian products; the opening of a René Magritte photography exhibition in the International Cultural Centre; the

presentation of a book about Flemish tapestries in Wawel Royal Castle; a jazz concert by the Steve Houben quartet feat and Mélanie De Biasio; and a Gala dinner at the Sheraton Krakow Hotel.

Netherlands Dueling Dutch chambers merge to combine forces During a well-attended general meeting in the Brovaria bar in Poznan on 27 March, the members of the Netherlands Polish Business Club Wielkopolska voted to join the Netherlands - Polish Chamber of Commerce (NPCC). The board and the management team of the NPCC are convinced this will strengthen both, and members of both organisations may attend events in both Poznan and Warsaw. The merger is part of the strategy of the NPCC to become more active in Poland in other regions than in Warsaw.

Netherlands-Polish Chamber of Commerce: from left to right Kees Jan Nieuwenhuis/Smulders Group, Rob Colenbrander/RCK and Coen Meijer/Zeelandia.

Chambers write open letter to Dutch Minister denouncing racism The Netherlands - Polish Chamber of Commerce, led by Elro van den Burg, Director of NPCC, has written an open letter, co-authored by the Netherlands-Polish Council for Trade Promotion.to Dutch Minister Verhagen of Economic Affairs, to express their concerns about a website set

up by the Dutch Freedom Party (PVV) of Geert Wilders. The site invites people to denounce nationals from central and eastern Europe that are causing ‘’nuisance’’ to Dutch society. According to the NPCC, statistics show that migrant workers do not steal jobs from the Dutch labor force, as

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Chamber of Commerce News

claimed on the PVV site, but contribute to economic growth and income. Dutch trade with Poland has ballooned since barriers to immigration were dropped in 2007 as part of EU integration. Total trade between the two countries jumped 28 per cent in 2010 to 13.8 billion euros, while as many as 2,000 Dutch companies operate in Poland. Multinational Dutch companies including Heineken and Philips have invested 22.9 billion euros in Poland since 1993, making the Netherlands one of the largest foreign investors in Poland. The letter is posted on the website of NPCC (www.nlchamber.com.pl)

Portugal Portuguese Week “Flavours of Portugal” For the third consecutive year, the PolishPortuguese Chamber of Commerce (PPCC) will host “Portuguese Week”, to be held at Warsaw’s InterContinental hotel, from 2127 May. “Flavours of Portugal” is a special culinary journey through the regions of Portugal, with opportunities to taste Portuguese cuisines and wines, each day from a different region of the country.

Moreover, each evening there will be a special live Fado concert and a vivid show of Portuguese students academic music group. Details at: HYPERLINK “http:// www.flavoursofportugal.pl” www.flavoursofportugal.pl

United Kingdom 20th Anniversary publication: “Britain in Poland” The BPCC plans to publish a special 20th-year anniversary edition in May, to

coincide with British Week in late May and the Queens Jubilee celebrations in June. This one-off publication will look back over 20 years at the British Chamber’s development in Poland, and highlight exceptional companies who have been instrumental in building business ties between the UK and Poland. Distribution of “Britain in Poland - 20th Anniversary Special Publication” - after the main events in May and June - includes at several BPCC business mixers and the annual ■ BPPC Gala in October.

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Car Review

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BMW’s 525d – Energy regeneration and James Bond features Some say that BMW has become a victim of its own success. Its ever-burgeoning popularity with drivers, some claim, has somehow diminished its exclusive status and led the famed Bavarian company to rest on its ample laurels. By Matthew Day

But if you happen to have the chance to drive the BMW 525d then you realise that, far from wallowing in past successes, BMW is still striving to produce the high-precision driving machines that have established its role as pace-setter at the luxury end of motoring. At the heart of the 525d lies its diesel engine. Once upon a time a diesel was a noisy clanking machine with all the grace of a Siberian tractor. But get behind the wheel of the 525d and you’ll realise that times and diesels have moved on - significantly. To begin with it’s silent. All the things that once distinguished a diesel such as the rattle, the chug and the clonking sound have all gone; replaced with a gentle hum, which in the cabin is barely audible. Put your foot to the floor and the diesel is a nimble beast, willing to please. The four cylinder turbocharged engine can bring the car to 100kph in a zesty seven seconds and produce 215 horsepower. This gives the 525d a wonderful sense of urgency, and gives one the confidence to nip and dart through traffic, knowing that the engine can call upon plenty of power when the need arises. Accelerate hard, and after just a moment of turbo lag, the car surges forward with enough energy to force you into your seat. Pretty impressive for a diesel, and the whole experience is aided with a responsive eight-speed automatic gear box. The diesel engine also makes for efficient driving with fuel consumption clocking in at a frugal combined cycle of 5-5.3 litres per 100 kilometres. Its capacity to go a long way on little fuel has made the diesel

a popular choice with BMW buyers despite the price of diesel. Handling for such a big car is sharp and refined, and inspires a sense of fun when driving. The 525d comes with the rather grandly named Driving Experience Control that adjusts aspects such as the throttle response and power steering resistance depending whether you want Comfort, Sport or Sport+ mode. Anybody wishing to tone down the testosterone levels can also flick the car to Eco Pro mode, which saves energy by lowering consumption of the air conditioning and other electrical circuits. As part of a general drive to increase efficiency, the 525d also comes with a stop-start feature. This means the engine switches off when the car’s waiting at traffic lights or stuck in traffic. The first time this happens it can catch you unawares, and for a moment you scrabble around thinking that somehow you’ve managed to stall the engine or for some unknown reason the car has given up the ghost altogether. But once you realise all is well, you realise it’s a feature that makes simple sense. Another little green feature on the 525d is what BMW has called Brake Energy Regeneration. In layman’s terms this

April 2012

www.bizpoland.pl means that the energy used in braking is converted into electrical energy that goes into the battery, and so helps keep fuel consumption levels down. Inside the 525d BMW maintains its high standards. The fixtures and fittings are made and stuck together with the style and high build quality that anybody would expect from the company. BMW has also worked to make the iDrive computer system, which allows you to control the sat-nav, climate, audio and other systems, a bit more user friendly. I know people who have been reduced to tears and resort to swearing like a trooper by the once complex peculiarities of the iDrive. But now it is all pretty much straightforward, and only takes a few minutes to get familiar with it. BMW has also included the wonderfully convenient head-up display. Most of the time this just shows the speed but, if the sat-nav has a route planned, it will show junctions with arrows telling you where to go so you never have to take your eyes off the road. In towns it also tells you what road you’re on, which is a nice touch for those with no sense of direction. As with many luxury cars the 525d comes with cameras to assist the driver when reversing or parking. For a more James-Bond

Car Review touch a buyer can opt for an infrared camera mounted in the radiator grill, which scans the way ahead looking for pedestrians and cyclists lurking in the dark. Now all this technology and high quality comes at a price. The starting price for the 525d is PLN 219,900, which is a fair

amount of cash by any standards, but worth it. With the car BMW have managed to combine the sometimes contradictory elements of style, performance, comfort and efficiency into one good package. ■ An impressive achievement.

Britain in Poland 20th Anniversary Special Publication – May 2012 Editorial Content:

Distribution and Print details:

Page Count: About 48 pages A4, with Print Run: Total of 4,000 copies. heavy-cover. • British Week (Warsaw) – 28th May til • Lead story - BPCC’s development since 1st June – 1500 copies • 5 events: Britit started • Focus on leading British in- ish Trade; British Isles Food; CEO Mixer; dustries in the world • profiles of some of “Founding Partners” Breakfast briefing; BPCC’s first members • List of 20 Found- British Innovation Day • British Moing members + those that have been Mem- tor Show – May – (Warsaw and Krakow) bers for 10+ years • Ambassador Profile/ – 500 copies • Direct Mail distribution Interview • Interview of first Chairman to all BPCC member firms – 600 copies • of BPCC – and newest Chairman of BPCC Queens Jubilee celebrations – June – 500 • Poland/UK trade flows/statistics • List copies • Annual British Gala event – Octoof Largest UK investors in Poland and ber – 500 copies • Various BPCC business Largest Polish investors in UK • Profiles mixers; UK TI; PAIZ, etc. – 400 copies of BPCC members (Advertorial Profiles) • Top Events Pictures (“Then and Now”) Contact: - pictures from 1992/1993 events • Thom Barnhardt: Paweł Siwecki: Around the UK’s regions – England’s 9 re- barnhardt@biznespolska.pl pawel.siwecki@bpcc.org.pl gions, plus Scotland, Wales and Northern mobile: 508 143 963 Ireland. • Policy groups – how UK best practices can improve the functioning of Poland’s business environment.

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Events Calendar April 16 April KEIDANREN visit to Poland Official delegation of the Japan Business Federation Keidanren will visit Poland. Organized by PAIZ. 17 April CEE Quality Awards Industry awards for business performance & achievement in real estate in 2011 http://www.ceeqa.com/ CEDEP Residential Conference CEE Warsaw, Hotel Intercontinental www.ciijournal.com 18-22 April Fashion Week Poland Łódź www.fashionweek.pl 25-27 April Baltic Business Forum 2012 Świnoujście The economic forum, held for the fourth time now in Świnoujście and neighboring Heringsdorf invites experts to discuss conditions and barriers in exchange of goods, services and capital between the West and the East, and strategies for the Baltic region. www.bbf2012.pl 26 April Business Opportunities in Angola PAIiIZ and the Embassy of the Republic of Angola to Poland invite to the Seminar on Business Opportunities in Angola. April 26th, 2012 from 1.30 pm at the PAIiIZ Information Centre, Bagatela Street 12, Warsaw. This seminar has been organized to connect the representatives of Polish businesses with key decision makers in the Angolan government and strategic economic sectors. Warsaw Details: karolina.dresler@paiz.gov.pl

May 1-3 May AIM Annual Investment Meeting, Dubai

AIM is an initiative from the UAE Ministry of Foreign Trade to be held in Dubai, United Arab Emirates from May 1 - 3, 2012 at the Dubai International Convention and Exhibition Center. AIM is the region’s ﬁrst Emerging Markets FDI-focused event to offer a blend of trade fair and intellectual features aimed at connecting Institutional, corporate and individual investors with high growth regions. www.aimcongress.com

30-31 May PGA Polska Cup Warsaw

8-10 May GREENPOWER 2012 International Renewable Energy Fair. The show, organised in cooperation with the Polish Economic Chamber of Renewable Energy, is held under the honorary auspices of the the Ministry of Economy. Poznan (Poznan Fairgrounds) Details: http://greenpower.mtp.pl/en/ 8 May Food Exports Poland VIP Business Mixer Warsaw

Second annual PGA Golf Cup Tournament. Organized by Europaproperty.com 19 May BMW Cup of Nations

By invitation only, for Polish food producers and international food buyers. Details: madamczyk@biznespolska.pl 7-9 May Organic Marketing Forum, Warsaw (MT Expo) 7TH International Meeting on Processing and Marketing of Organic Products and Raw Materials www.organic-marketing-forum.org

Warsaw, Warsaw Polo Club http://warsawpoloclub.pl/ 22-23 May PSEW Polish Wind Energy Association Poland’s largest annual conference and expo dedicated to the development of the wind energy sector. Warsaw www.pwea2012.pl ■

14-16 May European Economic Congress Katowice The leading theme of this year’s fourth edition of the Congress will be “Europe 2020”, EU energy policy, innovation, The European Union and Central European countries as well as the cooperation between Europe and China. Three days of the Congress. Previous edition of ECC was attended by 6,000 guests, and nearly 1,000 speakers. 28 May – 1 June British Week 5-7 major business events. Details: www.bpcc.org.pl

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Events

Nearly 500 retailers and FMCG sector guests at Poland & CEE Retail Summit In late March, the 3rd edition of Poland & CEE Retail Summit, organized by Blue Business Media, was held in Courtyard by Marriott hotel in Warsaw.

The Retail Summit, generally recognized as the most important meeting of FMCG and retail sectors in Poland, brought in 449 participants, representing 259 companies from such countries as Poland, Slovakia, Romania, United Kingdom, Australia, Austria, Switzerland, Portugal, Holland and France. This year the Retail Summit hosted representatives of 42 European retailers. The agenda was organized into 2 plenary sessions and 4 parallel sessions devoted to speciﬁc topics from areas such as: best practices in the shopper marketing and category management area; purchasing, sales, and private labels; logistics and supply chain management; future trends and perspectives of retail and FMCG sector.

lasting relationships and long-term cooperation between partners, in contrast to short-term perspectives. Results of the „RETAILER OF THE YEAR 2011. Suppliers’ Choice” survey were announced during the evening award ceremony. This year winners of this prestigious award, given in 6 categories, were chosen by FMCG suppliers during independent surveys conducted by ACNielsen. Among the winners were: Selgros, Aldik Nova, Chata Polska, E.Leclerc Poland, Netto and Rossmann Drugstores. The survey, in which 268 respondents took part, representing FMCG sector only, was conducted between January and February 2012. The importance of the Retail Summit to the FMCG and retail sector was suggested by the presence of top executives, CEOs and Board Members of retailers present, including: Pedro

During the summit speakers, who represented the retail side, raised the issue of concentration in the Polish retail sector, the dominant position of discount stores on the market (especially Biedronka was a point of reference for many statements regarding this point), development, remodeling and customization of store formats according to expectations of current and future customers. Participants had a chance to listen to the novel speech of the CEO of Tesco Poland who presented Tesco’s ﬁrst conclusions after the introduction to the market of their new store concept called “Tesco Extra”. Mr Tomaszewski introduced also areas of future development of Tesco in Poland in coming years. Representatives of the modern retail and leading FMCG manufacturers emphasized the need for ever-closer cooperation for mutual beneﬁts. And the smaller market players pointed out the need for long

Pereira da Silva, COO Jeronimo Martins Group and Country Manager Jeronimo Martins Poland, Ryszard Tomaszewski, CEO Tesco Poland, Jacek Roszyk, CEO Żabka Poland, Ireneusz Ozga, CEO Eurocash Franszyza, Wojciech Kruszewski, CEO Lewiatan Holvding, Krzysztof Tokarz, CEO Specjał Group, Kent Petersen, General Manager Netto Poland, Krzysztof Gradecki, CEO Eko Holding, Jerzy Sikora, Managing Director MMT Supermarket – Chata Polska, Jean Philippe Magre, CEO E.Leclerc, Barbara Wagner-Kołodziejczak, CEO Polish Group of Supermarkets, Paweł Musiał, General Manager Proﬁ Rom Food Romania, Paweł ChodakowskiMalkiewicz, CEO Interchem, Sławomir Chłoń, CEO Organic-Farma Zdrowia, Tomasz Śpiewak, CEO Grupa MPT, and Board Members of Carrefour, Piotr i Paweł, EM&F Group, SCA PR Intermarche, Kauﬂand, Selgros, Neonet, Lekkerland, Pepco. ■

April 2012