BizPoland Magazine - March 2012

Warsaw’s property sector pulls ahead of Paris

Food Exports Castration and capons – Poland’s newest food export p. 10

Warsaw Stock Exchange Stock indices up 22% year-to-date as exchange comes back to life p. 17

Annual property expo reveals winners and losers – and why Poland may be the darling of the decade for institutional investors

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Real estate Warsaw’s property sector pulls ahead of Paris Tenants Corner

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Food exports Food exports Castration and capons – Poland’s newest food export GulFood Expo – more than 30 Polish companies attend

News 12–14 Chambers of Commerce News 15–16 FDI News 17

Warsaw Stock Exchange Stock indices up 22% year-to-date as exchange comes back to life

Forbes Richest 100 18–19 Kulczyk tops ranking of richest Poles 20 21 21 22

Events CEE Retail Awards Foundation Dinner Dance Warsaw Business Mixer – top of Marriott Business Calendar

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Real Estate

Warsaw’s property sector pulls ahead of Paris Annual property expo reveals winners and losers – and why Poland may be the darling of the decade for institutional investors

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Nothing unusual happened at this year’s annual MIPIM real estate expo, held during the first week of March in Cannes. And that’s where the story begins.

The flock of blond Russian models faux-pregnant, pushing baby carriages in their stilettos, exaggerating their already exaggerated height, with white T-shirts promoting their … developments – was nowhere to be seen. The flash and hype of 2008 hasn’t yet returned.

And that’s a good thing – said the investors and developers at MIPIM, Europe’s largest annual property trade fair and expo.

It even rained on the first day.

The annual pilgrimage to MIPIM is “de rigueur” for Poland’s international property professionals. All pieces of the ecosystem are present: architects, developers, bankers, fund managers, lawyers, city officials, and brokers. Trading information and telling stories and socializing – everyone agrees that MIPIM is a “must attend” event and in the same breath that “nothing specifically gets done here”. What clearly does get done is networking, from morning til the wee hours of the next morning – and swapping information. The relationship-building is further proof of the adage that it’s more important who you know than what you know.

At MIPIM, real estate brokerage CBRE took occasion to announce big news: that Warsaw has moved into 2nd place Europewide as the destination of choice among institutional investors. The only city that ranked higher than Warsaw was London, and stalwart real-estate investment destinations like Paris and Munich now rank behind Warsaw. “The number two score of the Polish capital presents an optimistic outlook for developers and investors engaged in the Polish market, as well as for those intending to make an entry, and it reflects Poland’s well-deserved perception

Soren Olsen of Cushman&Wakefield said that “the availability of debt is limited, so we are seeing deep-pocketed investors now.”

of a market with strong underlying fundamentals, able to weather global and European economic volatility,” said Colin Waddell, managing director of CBRE in Poland.

Speaking at the Poland investment panel, Michael Kroger of banking behemoth Helaba said that “Warsaw is as attractive now to international institutional investors as London or Paris. More and more institutional funvds are coming to Poland”.

He cited not only the traditional institutional investors, such as German pension funds, but also Asian and Middle Eastern funds.

In late 2011, the Qatar Investment Authority agreed to buy a Class-A office building from Bouygues Immobilier. The building, when completed, will be the future headquarters of Telekomunikacja Polska SA. Navid Chamdia, Head of Real Estate, Qatar Investment Authority, said that “we choose only prime properties and great-covenant tenants. This investment proves that we believe in the Polish economy and its development potential. Poland is coping very well with overall economic slowdown in Europe, which is confirmed by strong economic indicators.”

Kroger also said that a Korean fund is behind a recently-announced deal by a UK property firm to buy a retail project

in Olsztyn. He expects more such deals in the coming years to add fuel to Poland’s property development scene. “Poland has been consistently building a profile of trust and consistency and it is more and more on the radar screen of international investors.”

Winners and Losers While the Polish real estate development landscape is littered with losers from the recent crisis, small fortunes have been in just the last 2-3 years by some developers, particularly those that have been prudent about their financing sources. “Some developers have been devvoured by their debt load”, said one property agent, on the sidelines at MIPIM. Poland’s relative strength coming out of the crisis means that developers can be mostly classified into two camps: those firms that have been weighed down by heavy debt, and are consequently retrenching or resigning; and those firms which are able to self-finance, or access debt markets based on pre-leases.

Soren Olsen of Cushman&Wakefield said that “the availability of debt is limited, so we are seeing deep-pocketed investors now. New deals are being driven by equity; and investors have lowered their return expectations.” He also said that some

March 2012

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Real Estate “it is getting more and more difficult to get permission to develop from local authorities. And a lot of investors are looking to invest in Polish retail, especially city-centre in big cities; but there’s not much to buy”.

He said that the Polish consumer is using “shopping malls as the new “city centre” – they have become the place to go for meetings and for socializing.”

The New Normal

Yann Guen of shopping centre developer Mayland, said that “it is getting more and more difficult to get permission to develop from local authorities.”

Commenting about how the financing landscape has shifted over the last few years, Jeroen Van der Toolen of Ghelamco said that “land financing just does not exist for the last two years. Now financing against a pre-lease is the norm”, while in the boom years of 2006 and 2007, bankers were granting highly-speculative loans to developers to buy land. On the demand Jer oen Van der Toolen of Ghelamco said that “land financing just does not exist for the last two years.

Now financing against a pre-lease is the norm.”

side, Van der Toolen said that “lots of tenants are looking at taking up new space even 2-3 years from now. We are seeing increased interest in top-class office space from the government sector, which is mostly located in very old, inefficient buildings.” He said the demand for modern office space from the government sector will drive the next wave of office demand growth, potentially as much as 1.5 million sm in the coming years.

Ghelamco is clearly betting big on Warsaw, with the 100,000 sm Warsaw Spire in advanced stages of development, as well as several additional major office buildings in Warsaw. According to Van der Toolen, the firm also recently bought three land plots for retail projects, in Warsaw and outside the city. These will be used for retail development, of smaller, street-level retail ranging from 3,000 to 10,000 sm.

“And our most difficult project of all, the residential redevelopment on ul. Foksal, has finally been approved, after a long fight”, he said. “We can now start the residential project. The Minister overruled the Conservator, concerning the façade.”

Bernhard Berg, Managing Director of IVG Institutional Funds GmbH, said that “investors are accepting high prices”, and developers are pushing hard to create more product.

Dr. Manfred Wiltschnigg of Immofinanz said that they “are planning to do more development work ourselves”, including a new shopping centre in Lublin, due to open in the first half of 2012, a new office in Warsaw, and substantial plans to develop retail warehouses. “We have a pipeline of 25 locations, with each about 10 continued on page 6

funds are interested only in “core” products, some others are restricted to Warsaw, yet increasingly some funds are finding value outside of Warsaw. Olsen: “Lodz is seen as a growing BPO/outsourcing centre.

Lodz may not look too good today, but you must look at it considering what it will look like in a few years, with a very short train trip to Warsaw and a newly-redeveloped city centre.”

On the retail side, Yann Guen of shopping centre developer Mayland, said that

2012 March

Dr. Manfred Wiltsvchnigg of Immofinanz said that they “are planning to do more development work ourselves.”

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Real Estate/Tenants Corner continued from page 5

million euro; we have four plots now and are working with major Polish food retailers on these.”

Summing up the mood at MIPIM, Tomasz Trzoslo of Jones Lang Lasalle said that “Poland is not only the flavor of the month, or the year. Poland may even be the ■ flavor of the decade.”

Tomasz Trzosło of Jones Lang Lasalle

Tenants Corner Chopin Airport City seeks investors at MIPIM Polish Airports’ State Enterprise (PPL)’s Filip Czernicki attended the recent MIPIM real estate expo, and unveiled detailed plans for its Chopin Airport City - in a bid to attract potential investors and companies to the project.

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The Chopin Airport City project – the first of its kind in Poland - is already underway, with the business model, planning and architectural stages that began in September last year, almost complete. The estimated project budget is 10 billion pln.

According to PPL, the project envisions 56 acres of land near the airport’s Terminal A transformed into a modern business park open to the public, including 165,000sqm of usable space in 16 ‘Class A’ office buildings.

These facilities will include modern offices, conference rooms as well as a number of retail services, PPL said.

Additionally two new hotels are due to open on the site in 2013, including a fivestar Renaissance by Marriott and a two-star Hampton by Hilton.

The airport city will also have recreational and entertainment facilities including

a centrally-located plaza surrounded by a number of restaurants, fitness centres and galleries.

Michał Marzec, general director of PPL, said: “The purpose of our visit to MIPIM was to attract potential investors and establish business relations. This was our first chance to showcase the project to real estate companies and see how it is received.”

PPL hired consultancy firm Ove Arup & Partners in September 2011 to examine how best to turn the land around Warsaw’s Chopin Airport into an ‘airport city’. The company also secured €31.3 million in bonds from Nordea Bank Polska SA in August 2011, to fund initial development stages.

Building Permit: The Warsaw district of Wawer approved the building permission application of ILHO Construcoes PL sp.zo.o. (located at

March 2012

www.bizpoland.pl ul. Ratuszowa 17/19 in Warszawa), to develop a multi-use retail/services project at ul. Bronowska.

Boutique developer gets permission for next niche luxury resi project in Warsaw Warsaw authorities have granted building permission for a new luxury residential development in Warsaw’s Powisle district.

The new project, nee Piano House, is located at the corner of ul. Topiel and Zajęcza, close to the Powisle metro stadion and not far from Mariensztat area.

Work will start on the Project as soon as April, according to the developer Icon Real Estate. The developer is currently in the stages of finalizing choice of general contractor. The architectural project is being done by Grupa5. The six-storey building will incorporate natural stone, sandstone, and granite – i n a classical design style. The project will have 60 apartments, according to Beata Staniak, director of sales.

Icon Real Estate Sp. z o.o. is an experienced developer specializing in boutique and historical renovation developments. The firm’s most recent project is Villa Hel, on the peninsula of Hel, as well as upscale apartments in the mountain town of Zakopane. The firm is currently redeveloping Kamienica Ordynacka on ul. Ordynacka in Warsaw, which contains 9700 sm, and another project on ul. Poznanska, and „Na Sowinskiego” in Warsaw’s Wola district. The firm is also preparing to start sales of its “Villa Icon” project in Warsaw’s Mokotow and another project in Zakopane.

HB Reavis purchases Inflancka development site from embattled Spanish developer HB Reavis Group has purchased the Inflancka development site in Warsaw from Lubasa Polska, the embattled Spanish developer, who bought the site in 2007 at the height of the property bubble.

The property, located at ul. Inflancka 3 in Warsaw with a land area of ca. 28700 sqm, holds a valid building permit.

2012 March

Tenants Corner This is the third large deal in Poland

by HB Reavis Group, a property developer based in Bratislava, following their recent projects in the Warsaw office market - Konstruktorska Business Centre offices - and the Warszawa Zachodnia rail station redevelopment. Construction at Inflancka will start in the first half of 2012 and the first phase will be completed towards the second quarter of 2014.

“The acquisition has been a logical conclusion of our continuing interest in the Polish property market. This prime asset is a desired addition to our already very extensive project pipeline in Poland” said Stanislav Frnka, CEO of HB Reavis Poland, on the sidelines at the recent MIPIM property expo. Frnka told BizPoland Magazine that the plan is to develop 95000 sm of offices on the site.

CBRE assisted the buyer, working together with Ex Novo Consultancy firm based in Barcelona. Financial services were provided by La Caixa.

BBI unveils next major office development project in Warsaw Although previously announced in August 2011, developer BBI Development NFI used the occasion of MIPIM to unveil the architectural design of its newest office skyscraper in Warsaw.

Michał Skotnicki, president of BBI Development’s management board, told BizPoland Magazine that the architectural design is meant “to age gracefully.

It will be distinguished by its elegant form and functionality.” The 180 metre building has a classic design with modern elements, and was designed by Juvenes – Projekt. The building will have 55,000 sm of leasable space, and building approval has already been granted by the City of Warsaw.

The development is in partnership with the Roman Catholic Archdiocese of Warsaw and St. Barbara’s Parish, and is located at the intersection of ul. Emilii Plater and ul.

Nowogrodzka - adjacent to the church. For many years, the site has been used as either a fuel station or parking lot. Frynka said that the building will be complete in late 2015/early 2016.

BBI is also co-developing with Liebrecht & Wood the Plac Unii office tower project in Warsaw, which recently signed a major lease with ING Bank.

Heads roll at GTC, as firm asks investors to put up more capital The long-time chairman of GTC resigned in early March as the Polish real estate developer posted a bigger-than-expected

2011 net loss due to further write-offs on its portfolio in south eastern Europe, particularly in Hungary and Romania.

GTC, which specialises in retail and office buildings, also announced plans to raise at least 100 million euros through a rights issue this year to bolster liquidity and deleverage.

Supervisory board chairman Eli Alroy, who has held this post since 1995, will be replaced by fellow board member Alain Ickovics on April 6. Although unconfirmed, his departure may have been hastened by a recently-announced share buyback plan – now on hold as the firm turns 180 degrees to raise new capital.

The real estate firm, which lost nearly two-thirds of its market value last year, reported an annual net loss of 270 million euros for 2011. Analysts expected a loss of 167 million.

“This is a giant loss,” said Maciej Wewiorski, analyst at broker IDMSA. “Alroy’s departure is a surprise. He was a one-man band, he ran the company with an iron fist. But it shows the market has no mercy even for people like him.”

In Q4, GTC took a 105 million euro write-off on the value of its portfolio, adding salt to the wounds, after writing off 191 million euro in Q2 and Q3 as the euro zone debt crisis hit real estate and credit markets in the region.

The company does around half of its business in relatively strong Poland and the other half in Bulgaria, Romania, Croatia and Hungary, which have been particularly negatively impacted by a toxic mix of economic slowdown and, in the case of Hungary, atrocious political mis-steps.

GTC shares were down in early March to 7.63 pln, the lowest level since the company’s exchange debut in 2004.

GTC gave no precise timing for the rights issue apart from saying it would take place in 2012. It said it had selected Morgan Stanley, UniCredit CAIB, DM PKO BP and Ipopema Securities as bookrunners.

GTC said Amsterdam-listed Kardan, its leading shareholder with a 28 percent stake, would participate in the issue.

75 firms fight for the right to design 250 million pln project The first phase of the architectural competition for the investment project Baltic Park Molo in Swinoujscie - the largest multi-functional hotel complex on Poland’s Baltic coast – is underway, and

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Tenants Corner continued from page 7

the developer has received 75 applications from architectural design firms.

“There is extraordinary interest in the project. Renowned architects from Poland and abroad have submitted proposals, and we can be sure that the final design will be really special”, said Jan Wroblewski, board member of the investor, Zdrojowa Invest. The competition has drawn applications from top architects, including Romuald Loegler, who designed the Lodz Philharmonic, the German RKW and JSK, which has designed many public buildings and hotels, such as in Abu Dhabi, the Austrian Riegler Riewe Architekten; renowned Warsaw architects JEMS, PAG dr. Tomasz Glowacki, BulandaMucha, Grupa5, Polish-French Fisher Atelier 44 and MWM Architects.

Baltic Park Molo is the most ambitious undertaking yet for investment group Zdrojowa Invest. The entire complex will be 50,000 to 55,000 sm, with an estimated project value of approximately 200-250 million pln. It will be implemented in stages, from the years 2013 to 2017.

The complex will consist of two hotels of 4 and 5-stars of different heights - from 7 to 12 floors, as well as shopping and entertainment areas, an arts center, and aquapark and cinema.

The residential part of the complex will house 600-700 apartments, mostly in a “condo” system, overlooking the sea. “The price will range from about 8,000pln to 18,000 pln per sqm”, said Wroblewski.

In addition, it will be a major business center on the coast and one of the largest in Poland. A conference/symposium centre will be able to accommodate 1000 people.

Leaving nothing out, the investment plan envisions a PPP project, to construct the first pier in Swinoujscie.

Delphi Poland leases 60% of new offices in Krakow

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Avestus Real Estate has acquired a new strategic tenant for its Krakow Enterprise Park office complex. It is Delphi Poland, which will lease 8500 sm. This is a record-size deal

for Avestus, and the new tenant will move in in late 2012. The deal represents 60% of the leasable space in the new building, which is the first of a multi-stage development.

“Enterprise Park has met all our expectations - location, technology, working conditions and respect for the environment”, said Jason Gage, head of Delphi Real Estate in Europe.

In September this year, the first phase of the project will be completed. The A and B buildings will have a total of over 15,000 sm. The general contractor is Eiffage Construction Mitex, and construction finance is being provided by Raiffeisen Bank Poland.

Deeply-indebted firm says it will sell more than 60 projects, seeks strategic investors Sebastian Bedekier, on the sidelines at MIPIM, told BizPoland Magazine that he was in MIPIM to “find buyers for properties”. PBG, mostly a construction company, and occasional developer, wants to sell real estate and investment projects worth several hundred million to reduce debt, the company said in official statements. “The strategy is to sell select assets not related to our core business and reduce involvement in areas that require significant capital expenditures.” The firm plans to sell nearly 63 real estate investment projects, with a total area of more than 700,000 sm.

Debt reduction will also be achieved by selling new equity, and partnering with strategic investors. At the end of 2011 the group’s net debt rose to 1.459 billion pln versus just 740 million pln at year-end 2010.

The ratio of net debt / EBITDA rose to a racy 3.0x versus 2.2x from the year-earlier.

Developer cuts skyscraper building height by 50% - but not for economic reasons Jan Kulczyk, Poland’s richest man, said that the planned 280 metre skyscraper Chmielna Tower, can not get building permission for such a tall height. The building’s planned height would pose a risk to airplanes landing at Warsaw’s Chopin airport. Although the plan is to halve the height, it is not clear that even 130 metres’ height would be approved by authorities, and it may consequently be scaled back even further to just 80 metres. “This zone is adjacent to the air corridor”, said Kulczyk, whose Kulczyk Development, in partnership with the New York-based Silverstein Properties, is actively planning several office building developments.

The office site is at the intersection of Chmielna and ul. Miedziana. It was planned to be the tallest building in Warsaw, and to have started in 2013.

Kulczyk said that the final height may be the same as the nearby Warta Tower, which is 82 metres high, and has 22 floors.

Iconic hotel in Zakopane put up for sale Orbis Hotel, continuing with its strategy to be “asset-light” and sell non-performing hotels, has said that it has put up for sale its Hotel “Giewont’ located in the center of Zakopane.

According to unofficial information, a local entrepreneurs is interested to buy and restore the reputation of the old hotel.

In Lodz, next shared services centre sets up Bosch’s BSH opened its new office building last week in Lodz, where it plans operate a “shared-services” operation for the Bosch group. The centre will serve BSH subsidiaries around the world. The project cost is 10 million pln.

Business Service Center-Purchasing is an organization created within the BSH Group, which will be responsible for purchasing materials and services for all branches of non-production located in Europe, the Middle East and Africa.

As announced by president of Bosch Home Appliances, Konrad Pokutycki, the centre’s tasks will include negotiating terms, prices and delivery of materials and services, including IT equipment, furniture, media, airline tickets, hotels, cars, office supplies and some advertising services. The new centre in Lodz will serve more than 20 countries.

In addition to business services center, the newly-built office building will also house part of the group’s IT services, which were established in Poland in 2009 and since then has increased employment by 50 percent. Both structures will eventually employ approximately 200 highly skilled workers. Company officials stress that employees are expected to have not only experience in purchasing and IT, but also foreign languages.

According to the company, these two new units will help optimize costs within the BSH world-wide branch network.

The Polish subsidiary of German company BSH Bosch und Siemens Hausgeräte GmbH is owned by BSH Home Appliances.

The company has three factories in Lodz, manufacturing washing machines, dishwashers, clothes dryers - and distributing home appliances brands of Bosch, Siemens and Gaggenau. Also in Lodz, the firm operates the Center for Research and Development and Dryers Service Centre.

BSH employs more than 2,000 people in Poland, and the total value of its investment to date is more than 275 million euro.

March 2012

www.bizpoland.pl City of Toruń lands major Scandinavian BPO client The city of Toruń, long a laggard in the race

by Polish cities to secure BPO/outsourcing investment, has landed Finnish firm Itella Information, which plans to open a Financial Outsourcing and IT Competence Center. Itella has commited to invest 5 million euro during the next three years and create 140 jobs.

“Within three years Itella Information Torun will invest in the center almost 5 million euro, creating at least 140 new jobs for professionals in finance and accounting, and computer science”, according to Jukka Alho, president of Itella.

The Outsourcing Center Financial Information Itella will centralize services from Itella’s financial and accounting services, and will also be open to serving external clients, providing ‘nearshoring’ services.

The Itella group operates in the field of postal services, logistics information and logistics in northern and central Europe, as well as in Russia. The group employs 31700 workers. In 2011, net revenues were $ 1.9 billion. Services related to the movement and logistics information are supplied under the brand name Itella, and postal services operating under the brand name Posti (Finland Post). Last year, President Jukka Alho in an interview that Itella considers Poland a key market and plans to increase employment here.

In November 2010 Itella Information acquired a 100% stake in the Polish company Outsourcing Solutions from Poznan, one of the leading national companies in outsourcing business processes, finance and accounting, and payroll.

Tenants Corner the former department store Neptun, the building will have 15300 sm of office space on 18 floors.

Katowice developer does deal with Treasury, plans to redevelop project GC Investment, a Katowice-based developer which is listed on the NewConnect stock exchange, has signed a contract with the Ministry of the Treasury to buy shares, representing 51 percent, of PKS (the bus station operator) in Katowice.

The contract is for 5.42 million pln, and obliges both parties to buy/sell a further 34% of shares by 31 December 2012. The sale of the Treasury’s 161,500 shares in PKS Katowice was announced in June 2011, at an offer price of 10pln.

PKS, in addition to transportation services, runs the rental of office space, warehouse and parking spaces; near the bus station in the center of Katowice.

According to the Treasury, in 2010 the company recorded 4.3 million pln sales and 620,000pln profit. PKS in Katowice employs over 60 people.

Second time lucky? Agency drops price 50% on iconic property in summer tender AMW, the Polish Military Property Agency, will try again this summer to

find a buyer for its highest-profile property, the Modlin Fortress. According to Krzysztof Michalski, president of the agency, who spoke to Property.BizPoland. pl at the recent MIPIM expo, two reasons mean that this time the sale is more likely to go through. First of all, in accordance with Polish law, the tender price has been reduced by 50%, since the earlier tender was unsuccessful, to 25 million pln. He expects a sale at around 30 million pln.

Secondly, the AMW, recognising the hesitancy of investors to get involved with a huge building that is regulated by the Historical Conservator’s office, has successfully pre-approved the Modlin Fort for specific uses. Michalski said that this means that the buyer will be able to quickly commercialise the building, avoiding delays caused by the need to get the Conservator’s approval for development.

He said that the tender will likely be issued in July, and he hopes that the deal will be completed by year-end 2012.

Also, in July, the new Modlin airport is due to open, with Wizzair planning to use Modlin as its base for Poland. The airport is located about three kilometres from Modlin Fortress.

Next American financial firm may take up 6,000 sm for major sharedservices centre According to informal talks at MIPIM, the American fund manager Brown Brothers Harriman will soon set up a major sharedservices operation in Krakow. According to BizPoland Magazine’s sources, Brown Brothers is considering taking between 5,000 to 6,000 sm, and is in talks with developer Buma about their new offices ■ Quattro.

Next office project in Gdansk signs 77 million pln deal with contractor Budimex construction company has signed a deal with Hines Development (SPV is Krakow Development) for the construction of the Office Center Neptune in Gdansk. The contract is worth 18.69 million euro, and work is expected to be completed by September, 2013.

To be located in the Wrzeszcz district at al. Grunwaldzka 107/109 on the site of

2012 March

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Food Export

Castration and capons – Poland’s newest food export Waldemar Birk no longer flinches when he talks about castration.

He’s become the leading advocate for caponization in Poland, as he pursues his ambition to build a network of ten capon farms over the next three years, and find export markets in Germany, Austria and Switze rland for roosters that are castrated at a young age. Capon meat is more tender and tasty than standard chicken meat, and commands a price premium in the marketplace.

“So far in Europe, capon are only produced in France”, said Birk, who is in the process of setting up “Kaplon Polski”, which is intended to be a cooperative production network for capons in Poland.

“Chicken prices are so low that producers are looking for high-end niches with better margins”, he said.

Birk, with a background in computer science, is backed up by his wife Agnieszka Mróz, a veterinarian, who is driving the business forward on a daily basis. They have developed technology for feeding and castration, paying particular attention to the feeding stages. The most important of the three stages is the last – just two weeks before slaughter.

“We want to spread out a renewed tradition of capons in Poland, and secondly we

want to develop the business”, said Birk, whose initiative was recently featured on TVP. They are currently educating veterinary doctors about the delicate task of castration. In France, the process of castrating young roosters costs 15 euro each.

Birk said that the process is not easily automated, and that a dexterous hand can castrate between 12 to 20 per hour. “We have even designed better castration tools, and have trained 7-8 doctors in this process.”

He said 195 people, mostly small farmers, have requested information about raising capons.

“Our costs are 4 times lower than in western Europe, and our capons have a slightly different taste. Capon liver – for example, wow, what a taste”, said Birk. He also said that capon has other advantages over farm-raised chickens: eggs that have lower cholesterol, capon are better for children with allergies, and capon must be “free-range” as a condition for their development.

While the US market produces about 1.5 million capon per year and the eastern Asian market of Taiwan produces more than 1.5 million capon, Birk aims for production of 110,000 capon per year in Poland within the next three years.

“We will produce capons based on slowgrowing birds of native Polish breed – Green-Legged Partridge, and we continue to carry out scientific studies on this rare

breed, to figure out the optimum diet.

We’ve been researching for three years, and in the spring will start research on next races”, said Birk. The birds will be marketed under the name “Royal Capon”, and will eventually have three different sub-brands ■ with three different price points.

History of capon Capon is a castrated rooster, ecologically bred specifically to achieve the juicy, delicate and delicious meat. Capons of Kaplon Polski are slow-growing birds of a native Polish breed – Green-Legged Partridge, which are reared in natural environmental conditions to the best of Polish tradition coming from the 16th century.

Capons Green-Legged Partridge have a unique taste of “venison”, and are fed only with natural, non-genetically modified feed.

The Romans are credited with inventing the capon. The Lex Faunia of 162 BC forbade fattening hens in order to conserve grain rations. In order to get around this the Romans castrated roosters, which resulted in a doubling of size. European gastronomic texts of the past dealt largely with capons, as the ordinary chicken of the farmyard was regarded as peasant fare.

Caponization must be done before the rooster matures, so that it develops without the influence of sex hormones.

Capons, due to the lack of sex hormones, are not as aggressive as normal roosters.

This makes capons easier to handle, and allows capons to be kept together with other capons since their reduced aggressiveness prevents them from fighting. The lack of sex hormones results in meat that is less gamy in taste. Capon meat is also more moist, tender, and flavorful than that of a hen or rooster, which is due not only to the hormonal differences during the capon’s development but is also because capons are not as active as roosters, which makes their meat more tender and fatty.

Capons develop a smaller head, comb, and wattle than that of a normal rooster.

The birds are well-fed for about 16 weeks until they weigh 8-10 lbs. This is double the life span of conventional chickens, adding to the cost, but making the birds more of a special dinner centerpiece.

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Food Export

GulFood Expo – more than 30 Polish companies attend GulFood, the world’s largest annual Food Expo, in Dubai, attracted more than 30 Polish food companies as exhibitors and attendees. The expo has more than 1 million square metres of exhibition space and over 30,000 food buyers and other professionals from the sector. Polish firms are increasingly finding markets in the Middle East and Asia, for foods ranging from meat that is prepared according to Halal methods, and sweets and honeys that cater to the sweet-toothed consumers in the Middle East. While alcohols have no market in the Middle East, private label drinks producers see potential in the market. ■

Exhibitors from Poland at Gulf Food, February 2012 AGUS Baltima Sp. z o.o.

Bartex Sp. z o.o.

Dr Gerard Sp. z o.o.

Eltar, Elzbieta Tesna Healthy Food Production SA Indykpol SA Instanta Sp.Z.O.O. Kazeina Polska Ltd Krynica Vitamin Sp. z o.o.

Kupiec Sp. z o.o.

Majami Sp. z o.o.

Mlekoma Sp. z o.o.

Mokate Sp. z o.o.

Stovit Group Sp. z o.o.

Zaklad Przemyslu Miesnego “Biernacki” Sp. z.o.o.

ZPC Milanowek

2012 March

Additional delegation from Poland (part of PAIZ’s Eastern Poland mission) Zakłady Mięsne (Meat Plant) ŁMEAT-ŁUKÓW Łuków Spółdzielnia Mleczarska (Dairy Cooperative) SPOMLEK, Radzyń Podlaski Lactima Sp. z o.o., Morąg Przetwórnia Owoców i Warzyw (Fruit & Vegetable Processing Plant) R. Kowalkowski, Lubawa Spółdzielnia Pszczelarska (Apiary Cooperative) APIS, Lublin Indykpol S.A., Olsztyn KASOL J. A. Kazberuk, Białystok Allnet Sp. z o.o. – Cukiernia Zaniewicz (Zaniewicz Confectionery), Międzyrzec Podlaski UNICO Import-Export A. Jasiński, Łomża Pszczelarz Kozacki (Beekeeper) Pasieka T. Kozak, Łukowa

11

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Chambers of Commerce News

France

Portugal The Polish Portuguese Chamber of Commerce celebrated its 4th Anniversary on the 8th of March. The PPCC started its activity in 2008 with twenty two founding members. After four years, its Membership has grown to 140 companies, and is now the largest Portuguese Chamber of Commerce in the CEE region. The Chamber aims to reach 200 member companies in 2012.

Ireland The Irish Chamber of Commerce annual Flavours of Ireland event was held on

February 2nd, in the Sheraton Hotel, attended by 155 people, and guests sampled various flavours of Ireland and Poland throughout the evening’s gala event.

The Irish Chamber is also hosting two events: the annual St Patrick’’s Day Business Mixer on 13 March at the Hyatt, in association with the American Chamber of Commerce; and the St Patrick’’s Day Charity Ball, on 17 March at the Hilton Hotel, with more than 400 guests expected. Details at Fundacja Imienia Świetego Patryka at fisp@irishball.pl .

Jerzy Buzek, in appreciation of his activities in the international arena as the President of the European Parliament, was awarded the Grand Prix by the French Chamber of Commerce at their annual February Gala. Maciej Witucki, President of the CCIFP, handing the statuette to Professor Buzek, emphasizing his great contribution to building a common Europe. “The Presidency of the European Parliament was one of the most difficult periods in the history of the EU, and has shown that representatives of the countries in the community are well prepared to work together”, said Witucki. The jury also appreciated Buzek’s commitment to the Eastern Partnership and the creation of a European Energy Community. This year’s gala was attended by nearly 400 guests. One point of the evening was the charity auction for the Children’s Fantasy Foundation, through which the CCIFP managed to collect nearly 40 000 PLN, towards fulfilling the dreams of terminally ill children. The highlight of the evening was a concert by Krystyna Janda.

Gras Savoye Polska The French insurance broker has opened a subsidiary in Ukraine. In Warsaw, Gras Savoye Polska has three locations in Warsaw, as well as offices in Katowice,

12

March 2012

www.bizpoland.pl

Chambers of Commerce News 19 March – Meeting with Deputy Prime Minister and PHIG members Meeting with Deputy Prime Minister of Poland, Minister of Economy Mr. Waldemar Pawlak and Polish-Spanish Chamber Members. The subject of the meeting will be the development of economic exchange between Poland and Spain, and the situation on the Polish market.

29 March – Tarde de Sabores Tarde de Sabores – Evening of Tastes. The Polish-Spanish Chamber invites you to a meeting in the Polish - Spanish group with a culinary theme. The last Thursday of every month.

26-29 March, Barcelona

Krakow, Poznan and Wroclaw – all led by MD Alexander Konopka.

Spain Banco Santander and KBC Bank announced that they have entered into an investment agreement to combine their Polish banking subsidiaries, Bank Zachodni WBK S.A. and Kredyt Bank S.A..

Jan Vanhevel, KBC Group CEO, welcomed the transaction, commenting as follows: “This transaction is another major milestone in implementing the updated strategy we agreed with the European Commission.

Even in an extremely challenging macroeconomic environment and in very volatile market circumstances, we have succeeded in reaching agreement on one of our most important divestment files.

Taking the decision to divest Kredyt Bank and to leave the Polish banking market was a very difficult one but difficult times have forced us to make difficult choices. We believe in the potential of the Polish market and of Kredyt Bank, in the professionalism of its management and employees and in the good service they deliver to their customers.

But we are also convinced that, by taking this step, both KBC and Kredyt Bank have a clearer view of the future. This proposed merger offers opportunities for Kredyt Bank’s customers and employees alike.”

Emilio Botin, Chairman of Banco Santander, said: “With this transaction, Banco Santander will significantly strengthen its presence in Poland, one of the most dynamic economies in Europe, obtaining the critical mass we seek in our core markets. The transaction also underlines the flexibility and other advantages of Banco Santander’s model of stand-alone subsidiaries. From the outset, we will generate value for the shareholders of Banco Santander as well as those

2012 March

of the merged bank, and will create a more powerful institution for customers and employees in Poland.”

Santander has committed to help KBC to lower its stake in the merged bank from 16.4% to below 10% immediately after the merger. For this purpose, Santander will seek to place a stake with investors. In this regard, Santander has also committed to acquire up to 5% of the merged bank to assist KBC. Furthermore, KBC intends to divest its remaining stake, with a view to maximising its value.

With this transaction, Santander will increase its presence in Poland, one of its ten core markets, underlining its long-term commitment to Poland. The proposed merger will consolidate the merged bank’s position as Poland’s third largest bank by all measures, with a market share of 9.6% in deposits, 8.0% in loans and 12.9% in branches (899).

With more than 3.5 million retail customers, the merged bank will also be Poland’s third in terms of revenues and profit, significantly closing the gap to the leaders.

Under the investment agreement, Santander has also committed to acquire 100% of Zagiel, the consumer finance arm of KBC in Poland.

Additionally, the existing cooperation between Kredyt Bank and KBC TFI (KBC’s Polish asset management company) will remain in place for the foreseeable future.

The merged bank will distribute KBC TFI’s funds under a non-exclusive distribution agreement for a minimum term of two years from the proposed merger transaction.

The transaction is expected to close in the second half of 2012, subject to the registration of the merger between Bank Zachodni WBK and Kredyt Bank and to obtaining regulatory approval and relevant competition clearance.

Alimentaria 2012. International Trade Fair for food and drink in Barcelona.

Department of Trade and Investment Promotion of the Polish Embassy in Madrid and Polish - Spanish Chamber of Commerce are pleased to invite you to participate in the International Fair of Foodstuffs and Beverages, Internacional Saloon of Food & Beverage, which will be held in Barcelona on 26-29 March 2012 . ALIMENTARIA is the largest food fair in Spain and one of the most important in the world.

Canada KGHM - C$2.87billion acquisition of BC-based QuadraFNX KGHM has received approval of QuadraFNX shareholders as well as the Supreme Court of British Columbia on the terms of the purchase arrangement.

The C$2.87billion transaction will represent the largest Polish foreign investment abroad and will diversify KGHM’s asset base beyond it’s current Lubin-based operations, as well as boost its current declining reserves.

WSK-PZL Rzeszów (Pratt Whitney Poland) gets PLN 81m EU grant for R&D centre WSK-PZL Rzeszów has been awarded a PLN 81 million grant by the Polish Agency for Enterprise Development (PARP) toward its project to build a PLN 213 million R&D centre to develop new drive systems for aircraft. The project is a milestone not only for the company but also for the entire Polish aerospace sector. Construction work will commence later this year and complete in 2015.

continued on page 14

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Chambers of Commerce News Trinity strengthens its Warsaw Board of Directors Pawel Świst was appointed to the management board of Trinity Corporate Services.

He is to be Director of TCS Poland responsible for business development. Pawel has seven years experience at Trinity, during which he has been based in Warsaw and was responsible for the day-to-day management of client services and projects within the Accounting Department.

Trinity expands shelf company services with new Limited Joint-Stock Partnerships.

Trinity is adding Limited Joint Stock Partnerships to its growing portfolio of shelf company services. The new service was launched in February 2012 and complements its existing stock of Limited Liability companies and Limited Partnerships.

Belgium O.R. Systems opens office in Warsaw O.R. System, a software publisher for counterparty risk management, financial analysis and internal rating, announced the opening of a new office in Warsaw.

This European expansion is part of O.R. Systems’ international development plan.

Speed Business Meeting The Belgian Chamber, in cooperation with the Scandinavian-Polish Chamber of Commerce, the British-Polish Chamber of Commerce, the French-Polish Chamber of Industry and Commerce and the SwissPolish Chamber of Commerce. held a Speed Business Meeting in Poznan on 7 March.

United Kingdom

Annual Trade and Investment briefing at the British Embassy in Warsaw confirmed Poland’s position as the leading British export destination in Central Europe and the EU’s highest potential growth market.

The release of the annual 2011 trade figures between the UK and Poland reflected total bilateral trade up 16%, demonstrating solid growth over 2010. At an event chaired by Ambassador to Poland Robin Barnett, presentations were given

by BPCC Chairman Alan Jarman (the CEO of HSBC Polska) and from leading British investors in Poland, GlaxoSmithKline and Tesco Polska. This was the first time businesses, policy makers and journalists have come together to discuss the potential for UK companies in Poland.

Poland is a Top 6 EU market; British Polish trade has grown 350% since EU accession; the country has sustainable, strategic growth potential as it continues to rapidly converges with established EU peers.

‘Driving growth through increased trade and investment is a priority shared by both Britain and Poland,’ said Ambassador Robin Barnett. ‘At this year’s event we presented a strong case for improving British businesses’ presence in this growing location, and heard from British businesses that have been a huge success here.

Helping British business – of all sizes – is what we’re going to be doing a lot more of in the future.’

United States No more green island The February AmCham Monthly Meeting panelists lukewarm about Poland’s economic performance in 2012. The implications

of the economic crisis in the eurozone for Poland in 2012 were on the agenda of the AmCham Monthly Meeting held in February. According to panelists, Monika Kutek, chief economist at Bank Pocztowy, and Janusz Jankowski, chief economist of the Polish Business Roundtable, 2012 is going to be another year of GDP growth for Poland although the it will not be as dynamic as it was in 2011 and earlier. They said that while Poland will generally feel the negative effects of the economic slowdown in the West, relatively high domestic consumption is going to work as a bumper to external shocks. Another panelist, Krzysztof Rybiński, rector of the Vistula University in Warsaw, expressed a more sombre assessment of the economic situation for Poland by saying that 2012 is going to be a transition year from “good times to bad time”. Rybiński said that Poland’s economic growth this year is going to be 0%, and that the country will descend into recession in 2013 for the first time since the start of the political and economic transformation in 1989.

Unlike Kutek and Jankowski, Rybiński was sure that in 2012 foreign banks in the Polish market will start to see troubles and many of them will be up for sale. This notion was strongly doubted by Jankowski who noted that rumors about banks being about to sell out had been around for a long time but none of them materialized. Member of the AmCham Board of Directors Thomas Kolaja moderated the discussions. He said that the Polish government should have a plan to differentiate Poland from the CEE region, “so people start to think of Western Europe as the UK, France, Germany, Poland, the Benelux countries and other countries,” ■ Kolaja said.

20th Anniversary publication The BPCC plans to publish a special 20thyear 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 the “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.

UKTI and BPCC release 2011 trade figures – Poland and UK

14

The joint UK Trade & Investment and British Polish Chamber of Commerce

March 2012

www.bizpoland.pl Czech NWR invests 500 million euro in Polish mine Despite a 44 percent drop in profits in 2011, the Czech Republic’s largest cokingcoal company, New World Resources, will go ahead with a 500 million euro investment in the Dębieńsko coal mine project in southern Poland.

NWR head Zdeněk Bakala said he is still committed to carving out a brandnew mine from scratch, a project he says is in line with the company’s expansion strategy.

NWR’s net income for 2011 was 312 million euro, compared with 232 million euro a year earlier. The significant decrease in the company’s profits a result of stagnating demand for steel and its raw materials, according to Marek Hatlapatka, head of research at Cyrrus.

Exceptional gains of 60 million euro from the sale of an energy unit and a tax refund of 23 million euro also inflated the company’s profit margin in 2010.

The decline of coking-coal prices has had a significant impact on NWR, which has fixed costs that are higher than most other companies in the world, Hatlapatka said. Since NWR mine their coal from 1,000 meters below the surface, their operating costs are much higher than those of companies that mine from the surface, and they don’t know what quality of coal to expect.

“Their last quarter of 2011 showed low profit, and it will likely be the same for 2012,” Hatlapatka said.

The company expects strong demand for thermal coal for 2012, but intends to increase the proportion of coking-coal sales to more than 50 percent over the next few years; for 2012, coking coal and thermal coal make up 48 percent and 52 percent, respectively, of external sales.

“NWR have been mining much more thermal coal, which is less expensive, and sales are depressed as a result of this,” Hatlapatka said.

Two years ago, NWR started expanding outside of Europe, investing as far off as Mozambique, Australia and Southeast Asia. Hatlapatka says all mining companies are looking to expand globally now.

2012 March

FDI News “NWR has got quite a large amount of free cash and is able to buy smaller mines,” he said.

In recent years, the company has expressed interest in assets in Central and Eastern Europe, including Poland and Ukraine, Hatlapatka said.

“Its first priority is the Poland project and to improve results in Czech projects. I don’t think we can expect any big acquisitions by NWR in the next four to six years.”

final well in an initial three well programme. The project is operated by joint venture partner Talisman Energy.

The well is testing deep unconventional gas potential of targets in the Lower Silurian, Ordovician and Upper Cambrian age rocks. Szymkowo-1 is the southernmost and deepest penetration of the Paleozoic section in the Baltic Basin, San Leon said.

Spanish contractor buys Danish wind turbines Danish turbine manufacturer Vestas has received a wind energy order from Iberdrola Engineering and Construction in Poland for 41 wind turbines with a combined wind “As we continue to understand the geology of the Paleozoic section in the Baltic Basin we are excited to move to the southern portion of the basin and test the deeper zone which we believe to have very high potential for gas,” said chairman Oisin Fanning.

San Leon has a 40 per cent free carried stake in the project. The firm listed on the London Stock Exchange’s AIM in 2010, raising more than 100 million euro. power capacity of 82 megawatts. The turbines will be installed in Marszewo, 20 km northwest of Slupsk/Zajaczkowo. Delivery of the turbines is scheduled to start at the end of 2012 and to be completed in 2013.

The contract includes supply, installation and commissioning of the turbines, as well as a three-year service and maintenance agreement.

Iberdrola Engineering and Construction Poland Sp. z o.o., the engineering and construction contractor/ tenderer, is one of the key players worldwide in the wind energy sector. Tauron Polska Energia S.A. is the end-owner of the Marszewo project and the second largest utility in Poland.

“We are very pleased with the confidence Iberdrola and Tauron are showing us by choosing Vestas as partner on the 82 MW Marszewo project. It is a sign of Vestas’ continued expansion in Poland, one of our main markets in Northern Europe. We look forward to a close partnership with both Iberdrola and Tauron,” said Klaus Steen Mortensen, President of Vestas Northern Europe.

Shale gas exploration drilling continues…

San Leon Energy announced the spudding of the Szymkowo-1 well in the Szczawno concession in the Baltic Basin. It is the

… yet shale gas potential may be lower than expected Poland’s estimated shale gas reserves, believed to be the largest in Europe, may be cut once data is analyzed from the country’s first wells, the Polish Geological Institute said.

“Core logs from Polish wells are being analyzed with the hel p of U.S. technology,” Miroslaw Rutkowski, a spokesman for the institute, said. “As result, we’re expecting that our estimates will be lower than those of the EIA,” he said, in a reference to the Energy Information Administration.

Drilling horizontal wells and using so-called hydraulic fracturing to open fissures in shale rock has made the U.S. the world’s largest gas producer. While Poland was identified as the European country with the best shale-gas potential, initial results from drillers including Exxon Mobil Corp. and 3Legs Resources Plc have disappointed.

Poland, seeking to reduce its reliance on Russian gas, may hold 5.2 trillion cubic meters of gas, or enough fuel trapped in shale to meet its needs for 300 years, the U.S. Department of Energy said in April. The estimate was made by applying recovery

continued on page 16

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FDI News continued from page 15

rates from shale areas producing in the U.S. The Polish institute and the U.S. Geological Survey are working to analyze drilling results and will publish an estimate of technically recoverable resources of shale gas in Poland on March 21. The revised estimate won’t be definitive as only about a dozen exploration wells have been drilled in Poland so far, Rutkowski said.

“The USGS approach is to assess undiscovered, technically recoverable resources using data from the assessed area augmented by data from producing basins that are geologically similar to those we are assessing,” Alex Demas, public affairs specialist at USGS’ Office of Communications, said in an e-mailed response to questions from Bloomberg News.

Producers including Exxon Mobil, Chevron, PGNiG, Poland’s dominant gas distributor, and refiner PKN Orlen SA have more than 100 licenses to explore for shale gas.

On Jan. 31, Exxon Mobil said two exploration wells drilled in Poland’s shale formations weren’t commercially viable because of insufficient flow. In November, 3Legs shares fell the most in London trading since listing in June after saying flow rates from its second shale-gas well in Poland were low Treasury Minister Mikolaj Budzanowski in January urged state-controlled energy companies to boost drilling with the aim of starting commercial exploration as soon as 2014 or 2015.

(Bloomberg)

Weber invests 24 million pln into Special Economic Zone

16

Weber-Hydraulika Ltd. will invest 24 million pln in the Kamienna Góra Special Economic Zone. This year, the zone’s Management Board has already issued its second permission for new businesses to expand in the Zone.

Weber operates in the Nowogrodziec subzone. It is the leading producer of customer-specific solutions for hydraulic drives and control engineering. The company equips, for example, the fire services and rescue teams with highly efficient rescue equipment.

According to the zone’s President, Iwona Krawczyk, the investor received permission for further investment which is connected with the planned expansion of the hydraulic components production. The company committed also to maintain the employment of at least 204 employees.

Automobile exports break record in 2011 Last year, auto exports rose to more than 19 billion euro, exceeding the 2010 levels, with Germany accounting for 30% of all exports, including 41% in exports of parts and accessories. Export growth of parts and accessories has been strong, and the difference between their value and the value of export of passenger vehicles and cargopassenger vehicles fell to EUR 383 million, from the previous year of EUR 676 million.

Companies from Germany were still their main customers, who bought 39.5% of all the components shipped abroad. The exports results are the highest in the history of the automotive industry in Poland.

German plastics firm buys land for expansion Coroplast Fritz Müller GmbH., the German plastics tapes and automotive cable systems manufacturer, plans to launch a wiring harness plant in Poland.

The family-owned Wuppertal-based company has bought land in Strzelce Opolskie and intends to set up a new plant

- its fifth production unit in that area, according to PAIZ investment agency.

Group subsidiary Coroplast Spólka already employs more than 3,000 at its four existing Polish plants. Its cables assembly facility at Dylaki won the award for best supplier to the nearby Volkswagen assembly plant for 2010.

The old established supplier produces a wide range of adhesive and insulating tapes in PVC, thermoplastics and elastomers for a variety of applications. Today, most of its output is focused on the production of cables and wire assemblies. It has its own compounding plant as well as foil calendaring and wire extrusion.

Coroplast operates other plants in Tunisia, Mexico and China.

FDI surges up in 2011 The National Bank of Poland published its preliminary report on FDI inflow to Poland.

The results reported are much higher than in 2010. According to NBP, in 2011 the inflow of foreign direct investments to Poland amounted to EUR 9.9 billion, an increase of 47% in comparison to the previous year. In 2010, FDI ■ inflow amounted to EUR 6.7 billion.

March 2012

www.bizpoland.pl

Warsaw Stock Exchange

Stock indices up 22% year-to-date as exchange comes back to life The Warsaw Stock Exchange continued its new-year rise, with strong numbers posted by the WIG Index, up nearly 11% this year, and the smaller-cap sWIG80 up more than 22%.

Below are some of the highlights from the month of February.

Xelion. Both companies will supply WSE and NewConnect data feeds, and Notoria will also supply Catalyst data feeds. The number of WSE data vendors grew to 59 companies, including 39 domestic and 20 foreign companies (UK, USA, Switzerland, Germany, France, Austria, Sweden, Denmark, Norway, and Slovakia).

New Connect - Key Statistics – Changes (in percentages)

Warsaw Stock Exchange Indices – Changes (in percentages)

Highest growth in stock prices in February – New Connect

February

On 9 February, the Warsaw Stock Exchange published the new portfolios of the indices WIG20, mWIG40, sWIG80 and WIG-Plus effective after 16 March 2012. As a result of the March revision, GETIN and PBG will be replaced by BORYSZEW and SYNTHOS in the WIG20 index portfolio. *** On 20 February, WSE series B bonds were newly listed on the bond market Catalyst.

The bonds were sold in a public offering addressed only to individual investors.

Individual investors placed 1,777 subscriptions for the WSE’s debt instruments.

According to the prospectus, the WSE reduced the subscriptions in proportion to demand, by more than 25 percent. *** On 20 February, the WSE published information about the share of investors in financial instruments trading in 2011.

According to the survey, foreign investors had the dominant share on the Main Market and generated 47% of equities trading in all of 2011. Domestic financial institutions maintained the second position in equities trading and generated 35% of turnover in all of 2011. Individual investors generated 18% of trading in all of 2011.

Individual investors played the dominant role on NewConnect and generated 75% of trading in 2011. Domestic individual investors generated 46% of trading in derivatives. *** On 24 February, the WSE acquired shares of the Polish Power Exchange for nearly PLN 180 million. The Warsaw Stock Exchange now holds shares representing 82.66% of the share capital of the Polish Power Exchange. *** WSE signed market data distribution agreements with Notoria Serwis and

2012 March

Year to date

February

3.51

2.79

NCXLIFESCI (Life-Sciences)

8.4

13.32

Company

MDEVELOP WIG20

-.65

8.05

MWIG40

5.02

13.72

SWIG80

10.28

22.26

WIG

1.55

10.55

WIGPOLAND

1.31

10.54

Year to date

NCINDEX

Price at 29.02.2012

Price at 31.01.2012*

% change

0.45

0.15

200.00

M10

0.28

0.10

180.00

IGORIA

0.43

0.19

126.32

The value of trading in shares and allotment certificates on NewConnect was PLN 167.5 million, up by 140% month on month.

New Listings in February

CATALYST

Mobile Factory (2 February) The company specialises in the development of mobile applications for smartphones and tablets.

M10 (6 February) The issuer is a start-up. It operates a research, development and licensing business of investment algorithms and automatic investments based on proprietary investment algorithms.

Fachowcy.pl (15 February) The issuer operates an internet portal for individual users who are looking for reliable professional providers and vendors.

Partner-Nieruchomości (16 February) The issuer’s business is to lease office space and warehouses and to lease industrial properties (land, production facilities).

Korporacja Budowlana KOPAHAUS (17 February) The company’s core business includes services, trade and production in the segment of comprehensive construction projects.

Playmakers (23 February) The issuer’s core business is to produce and broadcast online advanced audio-visual materials (including 3D productions).

Aduma (24 February) The issuer produces interactive (movement-sensitive) and tactile (touch-sensitive) technologies.

Modecom (28 February) Modecom is an importer and distributor of computer components.

The highlight of February on Catalyst was the new listing of WSE series B bonds sold in a public offering addressed to individual investors. The bonds were introduced to the main market operated by the WSE and to the ATS on BondSpot.

As a result, individual investors who acquired WSE bonds can trade in and cash the instruments at any time even before maturity.

New Listings – CATALYST Bond Market - February 3 February – TIMBERONE Value of issue: PLN 1.855 million Yield: 12% *** 9 February 2012 - EAST PICTURES SA. Value of issue: PLN 0.735 million Yield: 14% *** 20 February – Warsaw Stock Exchange Value of issue, series A: PLN 170,000,000 Value of issue, series B: PLN 75,000,000 Yield: WIBOR 6-month + margin of 1.17 bp. *** 21 February- e-Kancelaria Grupa Prawno-Finansowa Value of issue: PLN 1.95 million Yield: 13% *** 23 February - ODRATRANS Value of issue: PLN 60 million Yield: WIBOR 6-month + margin 4.00 bp. ■

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Forbes Richest 100

Kulczyk tops ranking of richest Poles Once again, Polish energy mogul Jan Kulczyk remains Poland’s richest man, according to this year’s ranking by Forbes magazine.

In spite of lots of talk about a crisis, it seems to have been a good crisis for Poland – as the Top 100 businessmen mostly increased their wealth in 2011.

Kulczyk, for example, has seen his fortune rise by 20 percent over the last 12 months, in spite of set-backs in certain of his overseas operations, including war-torn Syria, and stuttering progress

Nr

in both shale gas and real estate. His current fortune is estimated at 8.9 billion zloty (2.1 billion euro). His ex-wife, Grazyna Kulczyk, ranks at number 21, and increased her wealth by nearly 46%, according to the ranking.

Zygmunt Solorz-Zak, the media and telecommunications entrepreneur, has increased his wealth by 18 percent,

Position in 2011

Assets (mln pln)

Change (%)

Sector

1 Jan Kulczyk

1

8900

20.3

beverage industry, infrastructure, automotive

2 Zygmunt Solorz-Żak

2

8500

18%

3 Michał Sołowow

4

5500

0%

Name

maintaining his ranking at number two, with a net worth of 8.5 billion zloty.

The newest figure in Forbes’ top ten is industrialist Boguslaw Cupial, whose fortune has risen by 26.9 percent. Only one woman features in the top ten, Anna Woźniak-Starak, who is listed jointly with her husband Jerzy Starak, main■ taining 5th position.

Position in 2011

Assets (mln pln)

Change (%)

Sector

17 Andrzej Czernecki

19

890

-

medical industry

media, telecommunications, finance

17 Zbigniew Jakubas

20

890

1,1%

investment

chemical industry, construction

19 Małgorzata i Maciej

23

860

13,1%

pharmacy

20 Robert Kamiński

-

855

-

food industry

21 Grażyna Kulczyk

-

850

46,5%

real estate

22 Solange i Krzysztof

26

840

20%

automotive

Nr

Name

Adamkiewiczowie

4 Leszek Czarnecki

3

4300

-27.1

finance

5 Anna Woźniak-

5

3250

10.2

pharmacy, food industry

6 Roman Karkosik

6

2400

-11.1

chemical industry, metallurgical industry

7 Tadeusz Chmiel

7

1750

0%

furniture

8 Bogusław Cupiał

11

1650

26.9

industry

23 Heronim Ruta

15

800

20%

media

9 Jarosław Pawluk

8

1600

0%

transport

24 Henryk Stokłosa z

22

780

-

food industry

25 Aleksander

25

770

4%

fuel, finance, trade

26 Tomasz Gudzowaty

23

760

-

fuel

27 Zbigniew

31

730

28,1%

food industry

28 Jakub Zabłocki

27

690

-

finance

Starak, Jerzy Starak

Olszewscy

rodziną

10 Dariusz Miłek

9

1550

0%

footwear industry

Gudzowaty

11 Tomasz D. z rodziną

12

1200

-

investment

11 Ryszard Krauze

13

1200

9%

investment

13 Krzysztof

17

1050

12.9

engineering industry

14 Józef Wojciechowski

10

1000

-28.6

construction, real estate

15 Mariusz Świtalski

16

950

-

real estate, trade

28 Rodzina Likusów

76

690

13,2%

hospitality, trade

16 Rodzina Wejchertów

13

900

18,2%

media

30 Marek PiechockiV

29

670

1,5%

clothing industry

Jędrzejewski

Komorowski z rodziną

18

March 2012

www.bizpoland.pl

Forbes Richest 100

Position in 2011

Assets (mln pln)

Change (%)

Sector

31 Marek Majewski

-

615

-

trade

32 Edgar Łukasiewicz

27

610

11,6%

miscellaneous

Nr

Name

33 Arkadiusz Muś

70

575

105,3%

industry

34 Przemysław

44

570

29,5%

metals industry

Sztuczkowski

Position in 2011

Assets (mln pln)

Change (%)

Sector

66 Maciej Nawrocki

62

340

2,8%

chemical industry

66 Zbigniew Juroszek

70

340

17,6%

bookmaking, real estate

69 Roman Kluska

64

335

1,4%

science, food

70 Zenon Ziaja z rodziną -

330

-

cosmetics industry, pharmacy

71 Janusz i Elżbieta

57

325

10,9%

IT

72 Rafał Brzoska

92

315

34,3%

services

Nr

Name

Filipiakowie

34 Józef Koral z rodziną

34

570

12,3%

food industry

36 Krystyna i Ryszard

45

545

20,2%

building materials

Florkowie

72 Barbara i Jan Kolańscy 54

315

17,1%

food industry

65

310

3,1%

building materials

37 Jerzy Malek

21

530

37,6%

food industry

74 Roman Rojek

38 Krzysztof Klicki

93

525

60,9%

trade

74 Andrzej i Artur

-

310

-

cosmetics industry, trade

39 Adam Góral

32

505

1%

IT

74 Adam i Jerzy

68

310

8%

furniture

40 Jerzy Wiśniewski

18

500

45,3%

architecture

41 Andrzej Walczak

62

495

29,3%

building materials

77 Gerard Kolanowski

50

300

25%

food industry

41 Sobiesław Zasada

37

495

7,1%

automotive, home appliances, tourism

77 Irena Szołomicka-

70

300

6,6%

cosmetics industry, hospitality

43 Grzegorz Grzelak

37

490

6,1%

building materials

44 Teresa i Kazimierz

47

480

12,5%

food industry

79 Jerzy Gajewski

-

295

-

architecture

80 Piotr Voelkel

96

285

29,8%

45 Witold Anyszka

36

470

-

real estate, construction

furniture, construction materials

39

460

2,2%

83

240

-

food industry

81 Andrzej Raubo z

interior

46 Jerzy Kasperczyk 46 Sławomir Rusinek

39

460

2,2%

food industry

81 Wiktor Gryko

90

240

12,5%

fuel trade

Mokryszowie

Trawińscy

Krzanowscy

Orfinger i Henryk Orfinger

rodziną

46 Krzysztof Pawiński

39

460

2,2%

food industry

81 Adam i Mikołaj Placek -

46 Józef Szczur

39

460

2,2%

food industry

84

240

-

building materials

Alina i Józef Dzielińscy

70

220

21,4%

gambling industry

84 Przemysław

74

220

20%

industry, construction

90

210

-

food industry, real estate

46 Zdzisław Stuglik

39

460

2,2%

food industry

51 Wiesław Włodarski

47

455

5,5%

food industry

52 Krzysztof Oleksowicz

53

450

14,4%

automotive

52 Krzysztof Pruszyński

55

450

15,5%

building materials

86 Dariusz Wojdyga 86 Krzysztof Domarecki

46

210

51,2%

chemical industry

54 Krzysztof Grządziel

52

390

-

metal industry

88 Marek Tymiński

87

205

7%

IT

54 Bogdan Szewczyk z rodziną

61

390

7,7%

furniture

88 Wojciech Pluta-

-

205

-

industry, commerce, real estate

z rodziną

i Radosław Koelnerowie

Plutowski z rodziną

56 Mariusz Książek

49

380

7,3%

real estate, construction

88 Adam Banaszczyk

-

205

-

services

56 Adam i Piotr

-

380

-

jewelry

91 Stanisław Tyczyński

93

200

2%

media

56 Jerzy Lubianiec

-

380

-

clothing industry

91 Zbigniew i Katarzyna

96

200

-

real Estate

59 Mieczysław Ciomek

57

370

1,3%

real estate, furniture

91 Leszek Gaczorek

83

200

16,6%

footwear industry

59 Jacek Sarnowski

57

370

1,3%

real estate, furniture

94 Tadeusz

65

195

39%

food industry

59 Romuald Stachowiak

57

370

1,3%

real estate, furniture

62 Zyta i Andrzej

35

365

25,5%

pharmacy

94 Jerzy Mazgaj

99

195

-

trade, investment

62 Dorota i Sylwester

51

365

7,5%

finance, catering

94 Kazimierz Herba

87

195

11,4%

pharmacy

94

-

195

-

trade, shipping and logistics

Rączyńscy

Olszewscy Cackowie

64 Kazimierz Pazgan

81

350

25,7%

food industry

65 Mariusz Walter

67

345

9,5%

media

66 Zbigniew Bojanowicz

55

340

8,1%

food industry

2012 March

Niemczyccy

Niewiadomski z rodziną

Artur Toronowski z rodziną

98 Wojciech Wajda

76

190

28,3%

IT

98 Stanisław Rosnowski

-

190

-

agricultural processing, fuel

98 Wojciech Mróz

-

190

-

agricultural production, food industry

19

Events

www.bizpoland.pl

CEE Retail Awards The 4th annual CEE Retail Real Estate Awards, organized by EuropaProperty, highlighted the best commercial retail real estate companies, retailers, projects and people in the CEE region for 2011, and welcomed over 450 top real estate professionals to this year’s event. The awards, held on February 9th at the fivestar Intercontinental Hotel Warsaw, were selected by an international academy of jurors, comprised of senior industry professionals. King’s Street Retail, funded and actively asset-managed by Blackstone, was recognised by the jurors for its investment success over the past year. The company won two awards, including Overall Company of the Year as well as Project of the Year (in the medium category) for Galeria Twierdza Zamosc in Poland. Other winners for the retailer specific awards included: Yves Rocher, Sephora, Kazar, ■ Deichmann, Reserved and Carrefour.

20

March 2012

www.bizpoland.pl

Events

Foundation Dinner Dance The Foundation for Corporate Social Responsibility’s eighth Annual Dinner Dance was held 13 February at the Hilton.

More than 60 tables were sold to Foundation members and over 600 guests attended. The dinner was accompanied by a musical production by the Foundation’’s “PromiseKids”. (The Foundation is a network of 90 international corporate CEOs actively working in Pola nd to affect positive social change through corporate philanthropy. Collectively, FCSR has fed over 4 million hot meals to some of Poland’s most needy children.)

In addition to the presence of American Ambassador Lee Feinstein, more than 100 ■ corporate CEOs attended.

Warsaw Business Mixer – top of Marriott The Warsaw Business Mixer entertained guests at the 40th floor Panorama Bar of the Marriott Hotel. Hosts Christopher Garner and Katarzyna Wisniewska organize these monthly business mixers at top ■ destinations throughout the city.

21

2012 March

www.bizpoland.pl

Business Calendar March Clean Energy Expo - Warsaw 12–14 March 2012, Warszawa Green and clean energy expo, as well as “Small Windfarms” conference Warszawskie Centrum Expo XXI http://www.cenerg.pl/strony.strona.84.0.html

Warmia Mazury investment conference 20 March 2012, Warszawa PAIZ hosts this briefing about investing the Warmia Mazury region of Poland PAIZ www.paiz.gov.pl

LightFair 2012

EuroGastro-Expo for Catering and Restaurant Sectors

12–14 March 2012, Warszawa Annual Lighting expo Warszawskie Centrum Expo XXI http://www.lightfair.pl/

21–23 March 2012, Warszawa Expo for the Food and Restaurant industries MT Polska http://www.halamtpolska.pl/kalendarium.html

Packaging Innovations expo

Rotary Club of Warsaw – Annual Charity Ball

14–15 March 2012, Warszawa Warszawskie Centrum Expo XXI

St. Patrick’s Day Charity Ball 17 March 2012, Warszawa Annual charity ball, organized by Irish-Polish chamber, in association with British Chamber Hilton hotel

British-Polish Chamber of Commerce 20th Anniversary Business Mixer 20 March 2012, Warszawa British-Polish Chamber of Commerce 20th Anniversary Business Mixer Pure Sky Club www.bpcc.org.pl

Polish-Spanish Chamber of Commerce event www.phig.pl

April AmCham-American Chamber monthly meeting 4 April 2012 Warszawa Monthly meeting of American Chamber of Commerce - Members only Hotel Intercontinental www.amcham.com.pl

Fashion Week Poland 18–22 April 2012, Łódź

24 March 2012, Warszawa 17th Annual Warszawa-Wilanów Rotary Club’s Gala Ball Hotel Intercontinental

CrimeLab and Criminology – Expo 28–30 March 2012, Warszawa, MT Polska http://www.halamtpolska.pl/kalendarium.html

Office and Facility Management Market in Central Europe 28 March 2012, Warszawa OFFICE and FM Market in CEE. Special focus on Croatia Hotel Intercontinental www.eurobuildcee.com

Tarde de Sabores – Evening of Tastes.

29 March 2012, Warszawa For the sixth time in Lodz, 18-22 April 2012 will be held FASHIONPHILOSPHY FASHION WEEK POLAND. The idea of the project is to present premiere collections of Polish deisgners. April edition will reveal trends for Autumn and Winter 2012/2013.

Andels Hote

Annual Investment Meeting – AIM – Dubai

22

30 April – 3 May 2012 2nd annual Investment Forum, connecting Gulf States with emerging markets worldwide www.aim2012.com ■

March 2012