Biz Poland Magazine - April 2014 by BiznesPolska/CEE Business Media

April 2014

vol. 7 no. 4(42) Price: 20 zł

Ready for War? Urgency grips military as tenders put on “fast-track” Advisory: VAT scams, the numbers – and Polish enforcement?

Equities: Orco abandons Złota 44

Real Estate: Bullish mood at MIPIM

Special Focus

Luxury

Brands

in Poland

PolandSpecialty FoodsExpo Connecting international food producers w i t h b u y e r s in Poland

— 11 June 2014, Royal Castle, Arkady Kubickiego, Warsaw — Concept:

Exhibitors:

The Polish market for international food producers is developing quickly as an export destination, as Polish consumers’ purchasing power continues to grow. The Poland Specialty Foods and Beverages Expo (PFEX) aims to connect foreign food producers with Polish food buyers: large and niche retailers, importers, distributors, and major hotels. Organized by media group BiznesPolska, which organizes multiple niche events in Poland as well as publisher of the annual directory Food Exports Poland, the Expo will be accompanied by an evening networking business mixer on 11 June – to further build contacts between Poland-based buyers and foreign producers.

Profile of visitors: • Food and drinks producers, and specialty foods, from western Europe, Americas and Asia • Polish food buyers from large and niche retail networks, importers, distributors, and F&B buyers from Poland’s major hotels. Visitors are mostly from Poland (while Exhibitors are mostly from western Europe). The primary groups attending are retail buyers, including retail networks (large as well as niche) as well as department store buyers, bistros, restaurants, and specialty stores. Visitors are looking for new products to distribute, new products to import and export, and to buy specialty food and beverage products.

Supporting International Chambers of Commerce

For further details about Exhibition or Sponsorship: Thom Barnhardt Wiktor Glinski tb@biznespolska.pl wglinski@biznespolska.pl +48-508-143-963 +48-694-492-067

www.PFEX.pl

Table of Contents April 2014 vol. 7 no. 4(42)

Published by: BiznesPolska sp.z o.o. ul. Długa 44/50, bud. D, lok 704, 00-241 Warszawa tel.: 022 831 7062 General Manager and Editor: Thom Barnhardt (tb@bizpoland.pl) Publisher: Craig Smith (cs@bizpoland.pl) Editorial staff and writers: Leon Paczyński, Monika Tutak Research team coordinator: Magda Adamczyk Advertising Sales: Wiktor Gliński (wglinski@biznespolska.pl) tel.: 022 831 7062 Graphic Design: Sławek Parfianowicz sparfianowicz.wordpress.com Subscribe to BizPoland Magazine Annual subscribers to BizPoland Magazine receive our monthly magazine, as well as five business directories for free: O utsourcing in Poland, CityInvestPoland, Top Offices, Top Shopping Centres, and Wind Power in Poland. 500pln for one year.

Cover Story 4

Ready for War?

Advisory 10

VAT scams, the numbers – and Polish enforcement?

Special Focus: Luxury Brands

(L3) Letter from Editor

KMPG report on luxury goods market in Poland

(L4) Expert on luxury goods (L5) Key Findings (L6) Buyers of luxury goods in Poland (L7) Expenditure on luxury goods (L8) Real estate (L10) Cars (L11) Worldwide success of Polish brands

Brands Profiles

(L12) Leading the Luxury World of Superyachts (L14) Rebellious, Superb, Classy (L16) First in Luxury since 1991 (L18) Copernicus – Polish Spirit, Swiss Precision (L20) Driven by passion (L22) Calendar of events on the Polish market of luxury goods

Energy News

Equities News

(13) Orco abandons Złota 44 luxury real estate project (14) Ukraine: free-trade deal is expected to go into effect on Nov. 1.; Warsaw Stock Exchange with record-high revenues in 2013, up 3.6% (15) Kety metals posts PLN 28-30 mln net profit on PLN 395-400 mln revenues in Q1; Cyfrowy Polsat and mobile operator Polkomtel presented new technology solutions; Enterprise Investors holds EUR 200 mln for investments, to focus on Poland (16) Asseco takes over aquapark; looks at more post-Soviet countries for expansion

Real Estate 17

MIPIM delegates ‘bullish’ about European real estate market in 2014

FDI News

(20) Volkswagen to spend over $1 billion on new Polish van factory (21) Belarus-Poland trade and investment group to meet in Minsk 2 April (22) Launch of Bydgoszcz Regional Development Agency

City News

(24) Tricity (25) Szczecin; Kraków (26) Wrocław (27) Łódź; Katowice (28) Lublin

Chambers of Commerce News

(29) Belgium (30) Canada; Ireland; Japan (31) Netherlands; United States

Events

Details at subs@bizpoland.pl or call +48-22-831-7062

32 33 34 35 36

Business Calendar Poland & CEE Retail Summit 2014 brings in 700 participants Łódź’s First Grand Speed Business Mixer Collegium’s International Career Day Wine Tastings target Polish consumers

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Cover Story

Ready for War? Urgency grips military as tenders put on “fast-track” Poland’s military preparedness has moved to the very top of the agenda. As Russian president Vladimir Putin bares his teeth on the border of Ukraine, Poland’s military forces are in motion. And the business of equipping, supplying and modernizing the Polish military has been given new impetus. Deadlines for military tenders are being “fast-tracked” and Prime Minister Donald Tusk, Foreign Minister Radoslaw Sikorski, and Defence Minister Tomasz Siemoniak are busily shuttling between Washington, Brussels and other NATO partners, seeking assurances and urging urgency in NATO’s reaction to military manoeuvers in Ukraine. With somewhere between 60,000 and 100,000 Russian military troops on Ukraine’s eastern and southern borders, the parallels with the start of WWII are uncanny. This time, Poland plans to be ready.

First up, missile defense.

Poland’s Defense Ministry has announced the country will speed up its efforts for a missile defense system. “The issues related with Poland’s air defense will be accelerated,” Reuters quoted spokesman Jacek Sonta as saying. “Poland plans to choose the best offer for its missile defense in the next few weeks.” Current bidders for the missile defense system include: France’s Thales with European group MBDA and the Polish state defense group; the Israeli government; American Raytheon; and the Lockheed Martin’s MEADS consortium. The spokesman clarified that Poland intends to sign the final agreement for the construction of the missile shield this year. The project is projected to be built by the end of 2022. Military experts estimate that the project will cost up to $13.1 billion. The shield is planned to be completed in stages. The first phase involves eight sets of mid-range interceptor rockets. The bill to ensure funding for the missile shield has already been passed, according to the spokesman.

U.S. Secretary of Defense Chuck Hagel said he is seeking to speed up the timeline for the placement of NATO missile defense systems in Poland, which were to be operational by 2018. Hammond said the “missile defense program is not aimed at Russia” but at “rogue states” such as Iran. “It’s not a counter-Russia policy,” Hammond said. “They know what it’s aimed at and it isn’t aimed at them.” The planned European Interceptor Site for 10 missile silos in Poland was designed to work in conjunction with U.S. midcourse tracking radar in the Czech Republic. The NATO site in Poland was separate from Poland’s efforts to develop its own missile defense shield, which was designed to protect against Russia. At a meeting in Warsaw, Hagel also offered U.S. assistance to Poland for the development of its missile defense system apart from NATO’s. “As Poland explores its options for its own missile defense capabilities, there is an unmistakable opportunity for us to forge even closer cooperation in this area, leveraging cutting-edge technology and enhanced NATO capability,” Hagel told Polish Defense Minister Tomasz Siemoniak. Hagel said the allies would not recognize the Russian takeover of Crimea. Instead, his main concern now was the

buildup of an estimated 60,000 Russian troops on the borders of eastern Ukraine.

F16s and hundreds of U.S. troops immediately arrive Secondly, Poland is immediately receiving more U.S. military presence in country, including 12 more F16 fighter jets and 300 more troops at the F16 air base in Lask near Łódź. Before that decision, there was just a small detachment of US military personnel on the ground in Poland, assisting in the training of pilots. Normally, U.S. Air Force rotations in Poland are about two weeks. It’s not clear how long this rotation will last. “If it needs to be prolonged, it can be prolonged,” said Artur Golawski, a spokesman for the Polish armed forces. “It’s up to the Americans and how much they will spend on this rotation.” The base, located about 100 miles southwest of Warsaw, has been home to a U.S. Air Force aviation detachment since November 2012. The planes and personnel could be moved to several other military bases in Poland that are prepared to receive them. Americans responded very quickly to Poland’s request to expand the military drills, according to a source at the Ministry of Defense. US Congressman Stephen Lynch spoke out in approval of Poland’s decision. “I think the action in Crimea makes it abundantly clear that NATO needs to do more

April 2014

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Cover Story

to upgrade its defenses, not just missile defenses,” he said. A rotation of three C-130s and about 100 personnel from Ramstein Air Base were scheduled to arrive in Poland in early April for joint training, U.S. Air Forces in Europe officials said in late March. A

eastern Europe, that we expect a larger military presence of the US and that this eastern flank of Nato must be strengthened.” Given the crisis in Ukraine, he said, it was “natural” to conclude further talks with the US would also involve the possibility of locating a US base in the region.

Georgia, Moldova, Poland, Romania, Serbia, Turkey, Ukraine and the US, as well as NATO representatives. The US and NATO also announced that the annual Rapid Trident war games won’t be rescheduled and will take place in Ukraine this summer. In addition to US and

spokesman with U.S. European Command on Monday confirmed the U.S. military was working with Poland on increasing activities associated with the aviation detachment but said details were still being negotiated. “It is too early to talk specific aircraft or quantity,” Lt. Col. David Westover said in a statement. “We’re in consultations to determine what they’d like, what the airfield can handle, and what we can provide.” Last year, the Air Force did four rotations in Poland, two of which involved F-16s and two of which involved C-130s. An additional 10 more US F-15C Eagles, instead of a planned four, are to be assigned to NATO operations in the skies over the Baltics. Lynch also spoke of rotating more American ground and naval forces through the Baltic States for training exercises. More than 60 U.S. airmen from RAF Lakenheath, England, have been sent to Lithuania to bolster NATO’s air policing mission over the Baltics. “The US must increase its presence in central and eastern Europe, also in Poland,” Siemoniak said, on RMF FM radio. “We will be talking about the details and I am happy that representatives of the US, the US vice-president are open towards these talks.” During Biden’s visit, Siemoniak said, “there was a clear expectation from our side, and also from all Nato allies in

Britain has sent several Typhoon fighters.

British soldiers, they’ll include units from Armenia, Azerbaijan, Bulgaria, Canada, Georgia, Germany, Moldova, Poland, Romania and Ukraine. Rapid Trident 2014 is designed to promote regional stability and improve interoperability. The objectives for the off site training are in line with the aviation detachment’s original intent, which is to remain ready to operate across the range of military operations with precise, full-spectrum capability, said Maj. Matthew Spears, the U.S. Air Force Aviation Detachment commander. “The aviation detachment consists of a small team of U.S. Airmen, in country, on a prolonged basis to act as a coordinating element for joint training between the U.S. and Poland,” Spears said. “This is why the AvDet is in place and this is why we are an active detachment.”

2014 April

War games initiated The US military are planning large scale war games in Poland, which would involve troops from several eastern European states, the American ambassador Stephen Mull said. Poland, the Czech Republic, Hungary, Slovakia, Bulgaria, Romania and the Baltic states of Lithuania, Latvia and Estonia will be participating in drills, together with the Americans, Mull told Radio ZET. Lask airbase in central Poland has been selected as the venue for the military exercise, the ambassador said, refraining from saying when it was scheduled for. Mull’s announcement came just three days after US Vice President Joe Biden’s visit to Warsaw. Biden’s trip was aimed at reassuring that America remains a “steadfast ally” to Poland and the Baltic States after they expressed anxiety over the events in the Crimea. In late March, the Ukrainian military joined two weeks of multinational military exercises that involve troops from 12 NATO members and partner nations, Reuters reported. The Saber Guardian war games will be staged at the Novo Selo training facility in eastern Bulgaria and will include some 700 troops from Armenia, Azerbaijan, Belgium, Bulgaria,

Assistance to Ukraine Hagel said that the U.S. was still reviewing Ukraine’s urgent request for military assistance. He said that 25,000 cases of Meals Ready to Eat (MREs) were on their way to Ukraine and the U.S. was likely to approve other non-lethal assistance. No decisions have been made on shipments of small arms and communications gear to Ukraine that have been advocated by several members of Congress, Hagel said. However, President Obama said in a speech in Belgium that “we are prepared to do more.”

www.bizpoland.pl

Cover Story Stealth Tank in development Poland has unveiled its concept for the next generation PL-01 stealth tank, which incorporates technology that makes it invisible to enemy thermal imaging. While the PL-01 looks like something out of a futuristic sci-fi movie, it’s actually been slated for full scale production starting in 2018, and will be ready for export in 2022.

Fighter jets – Poland weighs the costs of modernization Poland is scrapping previous plans to buy F-16 fighter jets in five years, but what it will buy instead is up in the air. The Defense Ministry wants to wait and buy fifth-generation jets, which experts say could be F-35 joint strike fighters. The deal would enable a technological leap for the Polish military by replacing its Soviet-designed aircraft with high-end fighters. But analysts say austerity measures could force the ministry to buy secondhand aircraft from a European ally instead, such as older-model Eurofighter Typhoons. A third option could be an order of new Tranche 3B Typhoons. The planned procurement of fifth-generation fighters was announced Feb. 20 by Gen. Tomasz Drewniak and Col. Dariusz Tarkowski, who represented the Defense Ministry at a meeting of the Polish parliament’s National Defense Committee. The acquisition was included in the ministry’s updated Feb. 5 Technical Modernization Plan for the Polish Armed Forces. Deliveries of the fifth-generation fighters are expected to begin in 2022, with two aircraft supplied to the Air Force. The new combat jets would replace Poland’s Sukhoi Su-22 fighters. The strategic document does not specify the model of the aircraft, but the ministry is reportedly considering Lockheed Martin F-35s among other options, reported local news site Defence24.pl. Financing of the program is to begin in six years and it will be gradually increased, Drewniak said. Under the plan, in 2020, the ministry will earmark 170 million zloty for the fighter acquisition, with the annual contribution raised to 330 million zloty per year in 2021 and 2022.

Money – biggest defense budget in history

Poland recently unveiled its largest defense budget in history. This year, the Polish government is planning a defense expenditure of some 32 billion zloty, an increase of about 2 percent compared to the previous year. Under the previous version of the technical modernization plan, the Defense

Ministry aimed to acquire 16 fighters, with deliveries scheduled to begin in 2019. The selected model was the F-16, allowing Poland to expand its fleet of 48 F-16C/D Block 52 fighters. However, the original plan was scrapped. Local analysts say the modification of the plan could mean the Polish government might opt for acquiring secondhand fighter jets from Western Europe. “The ministry is trying to reduce costs by acquiring secondhand armament under various programs … from Western European governments,” an analyst from a government-run think tank said. “The Leopard 2A4 and 2A5 tanks, which were recently purchased from Germany, are a good example of this approach to the technical modernization of the military.”

Helicopters – a 9 billion pln deal in 2014 Poland plans to pick a company soon to build as many as 70 military helicopters in a potential $3 billion deal that’s among

the biggest opportunities on the international rotorcraft market. The defense ministry wants to buy 70 combat support helicopters, including 48 transports for the army to replace the Soviet-era Mi8/17-series, plus 12 maritime versions for the navy and 10 search-and-rescue craft for the air force, according to an e-mailed statement from a government spokesman. The contest has drawn bids from teams led by Sikorsky Aircraft Corp., part of Hartford, Conn.-based United Technologies Corp.; AgustaWestland, part of Rome-based Finmeccanica SpA; and Eurocopter, part of Leiden, Netherlandsbased European Aeronautic Defence & Space Co., according to the statement. Each contractor partnered with a Polandbased firm after Warsaw required that the aircraft be made in the country. Sikorsky is offering the S-70i Black Hawk and Seahawk, AgustaWestland the AW149 and Eurocopter the EC725. Sikorsky featured its S-70i at the last

April 2014

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Cover Story open architecture system. The 18-passenger helicopter in 2011 was offered for sale to the Turkish military, which ended up choosing the Black Hawk instead. Eurocopter’s EC725 was designed for the French air force, first flew in 2000 and can carry as many as 29 passengers. The platform is also used by such countries as Brazil, Mexico and Malaysia.

New Trainer Jets from the Italians Paris Air Show. The S-70i is the export version of the UH-60M Black Hawk, the first model of which entered U.S. Army service in 1979, and costs about $14 million apiece. Like its U.S. counterpart, it can carry four crew and 11 passengers, and has a cruise speed of 150 knots, range of 250 nautical miles and gross weight of 22,000 pounds.

The S-70i is the only version of the helicopter made outside the U.S. Sikorsky since 2007 has invested about $135 million to upgrade a plant in the country that now employs more than 2,100 workers. AgustaWestland’s AW149 is a newer design, unveiled less than a decade ago at the Farnborough Air Show in England. The company bills it as a fully digitized and

The planned procurement of new fighter jets is part of a string of acquisitions designed to modernize the Polish Air Force. In late February, the Defense Ministry completed another aircraft tender by awarding a contract for eight M-346 trainer jets with an option for a further four to Alenia Aermacchi. The Italian manufacturer edged out bids placed by

Move east, NATO NATO’s deterrence needs to be unambiguous. By Edward Lucas - European Voice

NATO is back in business. Even before the Ukraine crisis, Russia was a threat. It put tactical nuclear weapons and other advanced armaments in Kaliningrad and rehearsed a nuclear attack on Sweden. Its huge Zapad exercises in 2009 and 2013 were clearly designed to intimidate. Few now argue that the collapse of the Soviet empire made the NATO alliance redundant. Nor was expanding it eastward a mistake. If Poland, the Baltic states and Romania had not joined NATO when they did, Europe would be far more unstable. The simple principle of Article 5 – that an attack on one member of the alliance is an attack on all – is the ultimate deterrent. But being ultimate makes it vulnerable to pin-prick provocations: the sort of mischief and meddling we now see in eastern Ukraine. Would the United States really risk global thermonuclear war to stop Cossacks storming a provincial police station in eastern Latvia? The big danger for NATO, and the world, is that Vladimir Putin’s Kremlin reckons the answer to that is ‘No’ – and tries to bluff its way to another victory.

To avoid that, and all the dangerous miscalculations and potential accidents that might be involved (I am hearing worried speculation about how to handle a ‘Baltic Missile Crisis’ centring on the Swedish island of Gotland), the alliance needs to move swiftly and decisively to build up its presence in the region. Commendably, NATO has already drawn up contingency plans, and last year started on exercises. But the imbalance between threat and capability is still shocking. I have been working on a think-tank report (available at cepa.org) which notes that of 66,217 US forces in Europe, 66,081 are located in Western Europe, as are all of NATO’s major installations. This dates from the ‘three Nos’ principle established when the alliance expanded eastwards: that it has ‘no intentions, no plans and no reason’ to place significant military assets in the new member states. Russia’s behaviour has turned ‘No’ into ‘Yes’. For a start, our report argues that the United States should move a ground unit to the region, for example the anti-armour troop of the 2nd Stryker Cavalry Regiment, which is now in Vilseck in Germany. It should also develop air defences and build up ammunition, fuel stores and other defensive infrastructure in the Baltic states and Poland. It should develop a permanent presence in Poland’s Lask airbase and use it as a hub for regional training with the

Visegrád (Czech, Hungarian, Polish and Slovak) and Romanian air forces. Space is plentiful and land cheap in the eastern part of Europe. So the US could save money by moving the 52nd Fighter Wing to Romania, instead of Aviano in Italy as currently planned. The Joint Multinational Readiness Centre should also move from Germany to Poland, as should Land Command (now based in Izmir in Turkey). Secondly, NATO should play to areas of strength and concern in the new member states. The development of Estonia’s cyber-defence Centre of Excellence after the 2007 Russian cyber attacks sent a clear message of commitment on the digital battlefield. Similar backing is needed for Lithuania’s efforts to develop expertise in energy security and Latvia’s in ‘strategic communications’ (or information-warfare). Thirdly, a co-ordinated squeeze on Russian intelligence activity across all EU and NATO countries is long overdue. Non-NATO countries such as Sweden and Finland have plenty to offer here. Provocative? Yes. I expect such moves to provoke howls of protest from Moscow. But showing weakness will be even more dangerous. Trying to soothe and pacify the Kremlin did not work before the attack on Ukraine. It is certainly n not going to work now.

2014 April

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Cover Story BAE Systems with its Hawk, and the T-50, developed by Korea Aerospace Industries with Lockheed Martin. The 1.17 billion zloty contract was signed Feb. 26, finalizing the ministry’s effort, which dated back to 2010 and the relaunch of the tender in 2013. The acquired aircraft will replace Polish TS-11 Iskra trainers manufactured by Sikorsky’s local subsidiary, PZL Mielec. Deliveries of the M-346s are scheduled from 2016 to 2017, according to the ministry.

Drones – 3 billion pln deal For Poland, the developments on the Crimean peninsula are a solid reason to accelerate some of the acquisition programs for the country’s military, said senior government officials. These include the plan to modernize the Polish Air Force by expanding its fleet of UAVs. “We initially planned that key decisions relating to this program would be made on the turn of 2014 and 2015, but I don’t see any reason why we shouldn’t be able to accelerate it,” Polish Defense Minister Tomasz Siemoniak said in mid-March. Poland’s Defense Ministry is planning to acquire several hundred combat and reconnaissance drones by 2022. The program is estimated to be worth up to 3 billion zloty, reported news agency PAP. The country’s drone program runs in parallel to the Russian military’s acquisition plans. In February, Russian Defense Minister Sergei Shoygu announced a program to fit the Russian Armed Forces with $8.8 billion worth of new drones in combat and reconnaissance variants by 2020.

Submarines NCSS experts Tomasz Szatkowski and Jacek Bartosiak testified in the Polish Parliament in January on the new generation of submarines for the Polish Navy. During the testimony Jacek Bartosiak

underlined the significance of geographical environment of the Baltic Sea for the operation of modern submarines and the necessity to determine the required combat performance for future submarines. Tomasz Szatkowski argued that the current stage of submarine procurement analysis is ostensibly lacking the sound defence resources management. Further,

he emphasised that the submarines could effectively increase deterrence capabilities of the Polish Navy. He also elaborated on the importance of proper coordination between the economical, industrial and defence policies.

Urgency on all fronts Poland’s military urgency means deals and tenders that earlier were debated inside the government and at Parliament level will be finalised as soon as possible, many during 2014. While governmentinsiders and advisers might earlier have debated the theoretical threat of Russia, recent developments on Poland’s eastern border (and NATO’s eastern border) have provided clarity and removed some of the naivete in some circles about the source of threats to Poland’s security. While Poland is clearly not ready today for a major military engagement, the government is moving with urgency on all fronts – military, economic and political – to shore up its defenses and n deterrents.

April 2014

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Advisory

VAT scams, the numbers – and Polish enforcement? For a change of pace, I thought this week we would leap away from tunneling just a hair and focus on VAT fraud—simply because the numbers are huge.

By Preston Smith

While those “in the know” may expect me to write about various twists such as the Bulgarian “wafer mafia” or Slovak building materials (or alcohol), perhaps it would be best to take a quick look at the numbers.

Polish numbers.

Over the course of 2012, the Polish budget may have lost as much as PLN 1.8 bln due to VAT tax fraud connected with the mobile phones market, according to the Polish daily, Gazeta Wyborcza, which just happened to be citing international law firm DLA Piper. Now if that sounds like a big number, it is. But notice two things: First, this covers only the mobile phone sector and second, this is Poland, which when compared to problem countries such as Bulgaria, Romania and Slovakia looks as secure as Ft. Knox. And oddly, the size of the scam should not come as any surprise, with the value of mobile phone imports to Poland running about EUR 1 billion, but the combined declarations putting the figure at EUR 1.4 billion… well what can you say? Something is wrong, and it’s definitely not in Denmark. Or at least not in the Czech Republic or Germany. Detailed data revealed that Czech mobiles import declarations to Poland came to EUR 67.3 mln, while according to Poland’s declaration the value was only EUR 33.1 mln. Germans declared imports to Poland of EUR 300.7 mln, while Poland reported only a value of EUR 180.3 mln. The comparison of data submitted by the UK and Poland also shows this discrepancy. The UK reported imports as EUR 185 mln and Poland only as EUR 13.8 mln. These are big-time numbers, and the loss of VAT comes at a time when each and every country in the EU could use the money.

This fact has not been lost on Maciej Szczurek, Poland’s newly-appointed finance minister, who has said he will focus on VAT fraud with proposed changes due out next month. Yet most critics want to see not just Szczurek but anyone in the government walk the walk before they take the talk to heart. Especially as whitecollar criminals in Poland will soon benefit from still more changes that may make convictions all but impossible. In fact, new revisions to the Polish Penal Code of Conduct, due to come into force in July 2015, will dramatically favor wealthy defendants who will then be allowed to liberally call “expert witnesses”

“

Over the course of 2012, the Polish budget may have lost as much as PLN 1.8 bln due to VAT tax fraud connected with the mobile phones markets – according to Gazeta Wyborcza

”

in their defense—which will likely create battles of “my expert witness is smarter than your expert witness,” as prosecutors will also be expected to call their own. As VAT scams traditionally are a large percentage of white-collar crime prosecutions, expect long court delays and far fewer successful prosecutions in general. This will be damaging, partly because a well-run VAT scam is difficult to prosecute as it is. Scammers have come up with a multiple of tactics to clean up on government VAT reimbursements, with these running the gamut of sending empty trucks to the

border to working with companies that no longer exist (not even on paper) to the old stand-by, VAT carousel fraud. The last not only is commonplace in Poland and other countries of the CEE, but it also plagues the “old EU” and even the UK. In fact, a well-run carousel is extremely difficult to prosecute simply because it is multi-jurisdictional by definition, but also because innocent bystanders can often be used, which effectively throws a veritable school of red herrings into the mix. Although we’ll get into the ins-andouts of carousel fraud in forthcoming issues, a teaser of what is to come can be summed up as follows: A fraudulent mobile phone wholesaler buys a shipment of phones from another EU country. This means no VAT is paid on the purchase. He then sells the phones to another wholesaler or customer charging VAT. However, he never pays the VAT and disappears without sending it to the taxman. If he closes his company quickly and if he has thought the scam through, it will be very difficult to prosecute. Such one-offs are a headache to be sure, but more complex agreements can see a series of such middlemen selling from one to another before the musical chair stops with a legitimate customer. The catch is that the government may have to reimburse all or most of the VAT to the legitimate player at the end of the series of transactions. This not only costs the taxman, but also it racks up investigation costs, as such scams must be investigated whether or not they will likely be successful. This is not to say that there are not techniques to bust such scams—or even preventative strategies that could greatly inhibit VAT scams altogether. There are, and possibly this is what Poland’s new finance minister has in mind. That said, just as with a number of CEE countries, including Romania and Bulgaria, showing a more lenient attitude toward corruption, until the talk matches the walk, I n wouldn’t hold my breath. Preston Smith is the managing director of CEE Consulting Group, a regional risk consultancy and licensed detective agency specializing in pre- and post-transaction due diligence, multi-jurisdictional asset trace investigations, FCPA checks and on-theground investigation and surveillance.

April 2014

Luxury Brands Spring 2014

in Poland

Class A Offices building in Wilanow

SPACE FOR YOUR BUSINESS RETAIL SPACE OFFICE SPACE FOR SALE OR LEASE

FIRST STAGE COMPLETE: Space from 150 sm to 1500 sm

Luxury Brands Poland

Table of Contents

In the 25 years since Poland’s return to a free market economy, the number of wealthy people in Poland, as compared to Western Europe, able to afford topshelf luxury goods remains relatively low. Nevertheless, this figure is growing dynamically.

Letter from Editor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L3 KMPG report on luxury goods market in Poland. . . . L4 Expert on luxury goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L4 Key Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L5

The Luxury goods market in Poland is estimated to be worth ca. PLN 11 billion in 2013, and is projected to grow to almost PLN 13 billion in 2016.

Buyers of luxury goods in Poland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L6

The wealthiest echelon of society is looking to buy superb, classy and prestigious luxury goods more than ever before. Fine quality and superbly-designed brands are a mark of success and enhanced social status.

Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L8

Luxury Brands in Poland, a biannual supplement to BizPoland Magazine, is aimed at promotion of companies, either of Polish origin, or available in Poland, from the luxury goods sector which have proved to be successful in this highly competitive and tough market.

Brands Profiles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L12

Luxury Brands in Poland, with distribution at key business events attended by top management, aims to share the stories of luxury goods with their potential clients.

Copernicus – Polish Spirit, Swiss Precision . . . . . . . . . . . . . . L18

Expenditure on luxury goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L7 Cars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L10 Worldwide success of Polish brands . . . . . . . . . . . . . . . . . . . . . . . . . L11

Leading the Luxury World of Superyachts. . . . . . . . . . . . . . . . . L12 Rebellious, Superb, Classy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L14 First in Luxury since 1991. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L16 Driven by Passion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L20 Calendar of events on the Polish market of luxury goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L21

Materials on pp. 5-8, 10-11 and 22-21 comes from Luxury goods market in Poland 2013 Report by KPMG in Poland and are used courtesy of KPMG in Poland.

Wiktor Gliński Project Manager, Luxury Brands Poland

Apartments

Luxury Brands Spring 2014

in Poland

Profiles of Polish Brands

Cars Fashion Top Hotels and SPAs

Advisory Articles

Yachts Jewellery Perfumes

Tests of Products

Interior Design

Published Bianually

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Expert on luxury goods The Polish luxury goods market must be kept in a context. One should remember that Poland is a country with just 25 years of market economy and remains in the phase of wealth accumulation. In 2013 we had almost 800 thousand of rich and wealthy individuals with total net income over PLN 130 billion. There were also over 2 million of those aspiring to wealth with another PLN 100 billion of income, Although their income as compared to the rest of population was impressive, their wealth was still small in relation to their peers in other parts of Europe. Polish citizen possessed seven times less assets than an average in the European Union and eleven times less than an average Frenchman. Poland would need nearly 50 years to catch up with the current EU average in terms of the value of assets held.

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When it comes to the wealthiest, only 45 thousand of Poles owned liquid assets in excess of USD 1 million giving them entrance to the “so called” High Net Worth Individuals club. Countries with similar population like Italy, UK, Germany or France, each have more than a million of such individuals. This clearly indicates that in the category of wealth Poland has still a long way to go.

We are not surprised that over 40% of the spent on luxury goods goes to car dealers, mostly to the premium segment. Pure luxury cars sales are still less than 100 vehicles a year, however premium cars are still a symbol of the material status. Changes in VAT regulations will likely provide a stimulus for a further growth of this segment, at least in 2014.

Author: Tomasz Wiśniewski, Partner, Head of Valuation and Modelling Team, Corporate Finance Group KPMG in Poland

Value of luxury goods market in Poland experienced stable, high growth in excess of 10% per year from 2010 despite turmoil in the world economy and slowdown in Poland. Our forecasts for next three years remain positive, we believe however the market will start to enter into a more mature phase and resulting growth will be approximately 6%. This is still twice as much as the expected growth of the overall Polish economy.

This relatively low level of wealth is increasing year on year. In addition Polish medium class is building its image also through buying luxury goods that give them that so much desired touch of a class. This is one of the reasons why value of luxury goods market in Poland experienced stable, high growth in excess of 10% per year from 2010 despite turmoil in the world

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economy and slowdown in Poland. Our forecasts for next three years remain positive, we believe however the market will start to enter into a more mature phase and resulting growth will be approximately 6%. This is still twice as much as the expected growth of the overall Polish economy.

Second category in terms of money spent was designer clothing and accessories while hotel and spa services ranked third. Almost 70% of global luxury brands are already available in showrooms and boutiques across Poland with important new entrants in 2013 like Louis Vuitton, Maserati or Rolls-Royce just to name a few. We can expect selected new players establishing presence on the Polish market however due to customers’ mobility and growing importance of internet we will not be flooded by the new brands. Majority of distributors on the Polish luxury goods market expressed positive opinions about their sectors and were optimistic about the future. It is also worth noting that both sellers and buyers of luxury goods believe that quality is of utmost importance and brand recognition and prestige are also important decision factors. Although most of the luxury brands come from Italy, France or Switzerland we can observe international success of selected Polish brands in cosmetics or designer clothing segments or even in yachts market that due to very small demand on domestic market focuses mostly on exports. |

Key Findings The value of the luxury goods market amounted to PLN 10.8 billion in 2013. According to our estimates, the value of the luxury goods market in Poland amounted to PLN 10.8 billion in 2013, which represents growth by as much as 5.9% in comparison with the previous year. Based on the forecasts formulated by our respondents, we foresee that the value of the market will increase by 20% to PLN 12.9 billion by 2016. The fastest growth will be experienced by luxury real estate (by 29%) as well as hotel and SPA services (by 28%).

Luxury and premium vehicles represent the largest segment of the luxury goods market in Poland.

As much as 69% of global luxury brands are already available in Poland, with most of them coming from Italy and France. Luxury brands have expanded their presence in Poland in recent years, yet the growth rate has been weakening due to the gradual market saturation. After the entry of Louis Vuitton, Maserati and Rolls Royce, Polish consumers already have access to 69% of key global luxury brands. The largest group of brands come from Italy (22%) and France (17%). As regards the market structure by origin, considerable shares are also held by Swiss, American, English and German brands.

Positive growth prospects. Luxurious and premium vehicles are the largest of the analyzed categories, with an estimated value of PLN 4.5 billion. Luxury clothes and accessories are the second largest segment, with a value of PLN 1.8 billion. Further positions are occupied by hotel and SPA services – PLN 1.2 billion, luxury real estate – PLN 900 million, luxury alcohol and cigars – PLN 714 million, and furniture – PLN 580 million.

The number of rich and wealthy consumers has been rising. In 2013, Poland had 786 thousand rich and wealthy individuals, i.e. those with an annual gross income exceeding PLN 85 thousand. Their total net income was estimated at PLN 130.9 billion.

The survey respondents are optimistic about the future: 94% of them believe that the number of their clients will rise within the next three years, whilst 68% believe that transaction value will also rise.

Quality is the key factor taken into consideration by buyers of luxury goods and services. In the opinion of the surveyed companies selling luxury goods and services, their customers pay most attention to high quality (80%). Other important factors include appearance and aesthetic aspects (58%) and the prestige of the brand (54%). Nearly one in two companies (46%) believe that their customers seek unique goods and services.

The number of the wealthiest Poles is estimated at nearly 45 thousand.

Three quarters of all surveyed companies report barriers which limit the growth of their business in Poland.

The wealthiest individuals (HNWI – high net worth individuals) are traditionally defined as those who own liquid assets exceeding USD 1 million. Based on the 2013 Global Wealth Databook data published by Credit Suisse, in 2013 there were almost 45 thousand people in Poland who could be classified into the HNWI segment. The individual assets owned by most of them (89%) are estimated at USD 1 to 5 million. Two hundred Poles own assets with a total value exceeding USD 50 million.

A considerable majority (75%) of companies operating on the Polish market of luxurious goods claim that they experience barriers limiting their further growth. The greatest problem lies in the insufficient number of buyers with the right level of income as well as fluctuating forex rates. These barriers have a significant impact on the business of 66% of the respondents. Nearly every other company also experiences problems with legal, tax-related and administrative barriers and the high costs of adequate commercial premises.

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Buyers of luxury goods in Poland Low GDP growth, stagnation of real pay levels, and growing unemployment – these developments, which affect the whole economy, have little influence on the financial status of rich and affluent Poles. In 2013, the aforementioned group expanded and its total net income rose again, as it did in previous years. The richest Poles (HNWI) have the highest importance for the market of luxury goods, their number estimated at 45 thousand. In 2013, Poland had 768 thousand residents who could be described as wealthy or rich, i.e. with an annual gross income exceeding PLN 85 thousand. We estimate that their total net income amounted to PLN 126.8 billion this year.

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In comparison with 2011, there has been an increase in the number of rich and affluent Poles in hired work (i.e. paying taxes in accordance with the general tax scale) and in their income levels. On the other hand, the situation looked considerably worse among entrepreneurs and self-employed individuals. The number of such individuals had not changed yet their income shrank. There was also a decline in taxpayers–income earned from the sales of securities or derivative financial instruments. Even though 2013 saw no economic rebounding, this should not have any significant effect on the number of rich and affluent individuals or their income. In the worst case scenario, the growth will be slower than in 2012. We estimate that the group of rich or affluent Poles will increase by 18 thousand (up to 786 thousand) throughout 2013, and their net income will rise to PLN 130.9 billion. It is likely that the growth rate will pick up after 2013. In 2016, Poland might have as many as 1 million rich and affluent residents, with a total net income reaching PLN 172 billion. Rich and affluent individuals constitute the major target group for companies operating on the luxury goods market. However, the HNWI group (high net worth individuals), i.e. the richest consumers, play the key role there. The traditionally adopted classification criterion in the case of this group is the possession of liquid assets exceeding USD 1 million in worth (for instance, cash, stocks and shares etc.). According to the 2013 Global Wealth Report Databook, published by Credit Suisse, there are 45 thousand Polish residents who may be classified as HNWI. In comparison with Western Europe, the total number of HNWI in Poland

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is not high. For instance, there are 2.2 million of such individuals in France, 1.7 million in Germany, and 1.5 million in the UK. The total number HNWI in Poland is comparable to countries such as Portugal (65 thousand), Finland (66 thousand) or the Czech Republic (28 thousand), i.e. much less populated countries.

The individual assets held by the majority (39.7 thousand) of Polish HNWI are estimated at USD 1 to 5 million. Only a very small group has significantly greater assets. However, potential consumers of luxury goods are not only the HNWI, and even not only rich and affluent citizens. Apart from them, Poland has a large group of people aspiring to wealth, with higher-than-average income (PLN 3.7–7.1 a month gross) which allow them to make occasional purchases of luxury goods of smaller value. Based on our estimates, in 2013 there were slightly more than 2 million of such Poles, with their total annual income amounting to about PLN 97 billion. The total number of such citizens as well as their income will most likely grow more slowly than in comparison with the group of rich and affluent individuals, yet growth could also be expected within this group.

Expenditure on luxury goods In 2013, the value of the luxury goods market in Poland increased by 5.9%, reaching an estimated level of PLN 10.8 billion. This sum comprises luxury consumer goods (clothing, accessories, alcohols, cigars, jewelry and timepieces, cosmetics and perfume, consumer electronics, stationery goods), premium- class and luxury cars, deluxe real estate (apartments and residencies), yachts, hotel and spa services as well as furniture and interior decor. The segment of premium-class and luxury cars is largest of the aforementioned categories (ca. PLN 4.5 billion in 2013). Luxury clothing and accessories is another very important segment, with total sales reaching PLN 1.8 billion. This is followed by hotel and spa services (PLN 1.2 billion), real property (PLN 900 million), alcohols (PLN 684 million) and furniture (PLN 580 million).

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The forecasts of market participants surveyed by KPMG as well as Euromonitor International data indicate that the value of the Polish luxury goods market will reach nearly PLN 12.9 billion in 2016. This will represent a 20% growth versus 2013. The most significant growth figures are to be expected in hotel and spa services (28%), real estate (29%) and furniture (25%). A dynamic growth rate will also be observed in the segments of premium-class and luxury cars (17% growth), luxury clothing and accessories (17%) as well as alcohol and tobacco products (13%).

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Real estate The primary and secondary market of luxury real estate is worth about PLN 0.9 billion per annum. The available investments may be classified as luxurious or super-luxurious. To date, no investment in Poland could be classified (based on global standards) as ultra-luxurious. The market of luxurious residential real estate in Poland is relatively little known or studied. While the market of new premises, especially apartments, is regularly reviewed by market monitoring companies, information from the second hand market is indicative only whereas information on new stand-alone residencies is hardly available at all.

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Based on the data from REAS, the value of the primary market (apartments and residences) is approximately PLN 250-260 million annually. The primary is dominated by developers who erect luxurious apartments (80% in terms of value). Such premises erected mostly in Warsaw, Krakóww, Poznań, Wrocław and the Tri-city. The primary market of residences is nearly four times smaller, with the average transaction price for resi-

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dences falling significantly below those of luxury apartments. This means that the most affluent individuals prefer to invest in apartments, whereas they prefer to build residences in an independent manner, based on individual designs. The secondary market is almost twice as big and its value may be estimated at PLN 600 million annually. This comprises transactions involving apartments of a total value exceeding PLN 1 million and a price per square meter of over PLN 20 thousand, as well as luxurious residences priced over PLN 2.5 million. Whereas sale of apartments is the main type of transaction on the primary market, the respective share on the secondary market is merely 12%. Contrary to the primary market, the average prices of residences on the secondary market are significantly higher than the average prices of apartments. The total value of annual sales of luxurious apartments and residences in Poland nears PLN 900 million. If we add the value of new residences based on individual designs to this figure, the value of expenditure on luxurious real estate in Poland would significantly exceed of PLN 1 billion.

Cars The market of premium and luxury cars is among the strongest segments of the Polish automotive market.

The segment of luxury goods in Poland is still at in this segment an early stage of development. […] It is not only about age but, first and foremost, about the fact that this is not the ‘old money’ generation but the first generation. The second generation is just entering the game and

Despite some turbulences in recent years, the number of registrations of top class vehicles continues to grow, even with stagnation experienced on the market of passenger cars as a whole. In 2012, there were 22,400 registrations of cars classified as premium brands. Sales volumes in the luxury segment are considerably lower and more volatile, with only 33 registrations in 2012, that is by 21 vehicles fewer than in 2011. Both segments of the market are likely to experience growth in 2013. The available data for Q1-Q3 of 2013 indicate that the number of registrations has increased by 7.7% year-on-year.

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The highest growth (as a percentage) has been recorded for Lexus, BMW and Mercedes. A strong rebound is seen in the luxury segment: the number of registrations has increased by 86% compared to first three quarters of 2012. Registrations of Ferrari, Maserati

joining parents’ businesses. Thus, one can hardly invoke consumer behaviour patterns or preferences that are observable on mature Western European markets. […] However, the Polish market is important […] mostly due to its growing potential. We are the first market in Europe to enjoy product launches which is the best proof that global brands are interested foreign-based customers domestic customers in Poland.

— Marcin Dąbrowski, Vice-president of Board/CEO,

Jaguar Land Rover Polska, Aston Martin Warszawa, Lotus Warszawa

1) As the scale of re-exports is hard to assess, it must be assumed that approx. 10–15% of registered cars are not, in fact, obtained by Polish consumers.

and Bentley are particularly prominent (regarding the segment as a whole). in the premium segment to up to 24,000 premium cars and up to 60 luxury vehicles. We estimate that the total sales in both segments will exceed PLN 4.5 billion1.

April 5 & October 18, 2014 Pure Sky Business Club Warsaw, Poland Pure Sky Club 22nd Floor address: Złota 59

• 14.00 Exhibition doors open • 18.00 fashion Show • 19.00 cocktail party www.luxbrandexpo.com

Orgaznized by:

Pure Sky Club & EuropaProperty.com are very pleased to announce that we are again to host Poland’s only Luxury Brand Exhibition on 05.04.2014. Lux Brand Expo will feature global brands from fashion, jewelry, music, art, yachts, super cars, real estate and travel.

For further information contact: Craig Smith, +48 604 144 769, craig@europaproperty.com / Julianna Ozga, +22 250 11 08 , j.ozga@pureskyclub.com

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Worldwide success of Polish brands Despite the fact that the global and European market of luxury goods is highly competitive, some Polish brands have been able to succeed. International expansion coupled with excellent quality of products should guarantee a robust marke t position of Polish brands on the international market of luxury goods in future. Along with the increasing affluence of the society, Polish luxury and premium brands enjoy a growing popu-

In the case of luxury brands originating from Poland, each segment struggles with the negative impact of the geographic origin, which makes it difficult for companies to make a presence on global markets. Nevertheless, the visible success of domestic brands prove that it is, indeed, possible to make a Polish brand international. The most important factors here include a long term vision of growth, high quality and a carefully crafted expansion strategy.

larity on the domestic market, while making efforts to expand outside Poland. In the last few years, some Polish brands have achieved global or European success. In the beauty segment, Dr Irena Eris may boast an exceptional success. In 2012, it was invited to join the prestigious Comité Colbert, an association established by J.J. Guerlain. The success is even greater considering that Dr Irena Eris is one of very few members from outside of France and the only member from Poland. The fact that Dr Irena Eris products are to be found amongst such brands as Chanel, Dior or Louis Vuitton indicates that their exceptionality is also appreciated abroad. The clothing segment has also experienced dynamic growth in Poland. New boutiques of Polish designers pop up in numbers in the most renowned Polish commercial streets. Some labels are also recognizable on the international market. These include Twins from Wrocław, offering exclusive men’s clothing, the rel-

atively new La Mania, which recently opened its own stand in London’s Harrods, or well-known Polish designers such as Eva Minge, Maciej Zień or Gosia Baczyńska. In 2013, Eva Minge received the prestigious International Star Diamond Award from the American Academy of Hospitality Sciences, awarded to companies which stand out on the luxury goods market. Apart from the Polish designer, only Louis Vuitton was honored with the same award. The yacht market has somewhat different characteristics, featuring such Polish companies as Sunreef Yachts, Galeon and Delphia Yachts. Considering the very small demand in Poland, yachts had to expand into foreign markets. Each company operating in that segment has adopted a different growth strategy. Galeon specializes in manufacturing luxury motor boats, Sunreef concentrates on the niche market of luxury catamarans while Delphia Yachts, which manufactures sail boats, decided to invest in further development through takeovers, and in 2012 it took over the renowned Swedish shipyard Maxi Yachts . Each of those companies is highly successful on the international market. Takeovers are also recorded on on the market of watches and jewelry. Apart recently purchased the brand of the Swiss watch manufacturer Albert Riele and relaunched production. The takeover of the Swiss brand may help this Polish company raise its international profile. Another effective method for Polish brands to make a global presence is through a merger with a global corporation. This is how the Belvedere vodka brand from Żyrardów, owned by LVMH, has managed to win international acclaim. Moreover, the market of luxury and premium vodkas has also witnessed the success of other brands which originate from Poland, such as Chopin. In the case of luxury brands originating from Poland, each segment struggles with the negative impact of the geographic origin, which makes it difficult for companies to make a presence on global markets. Nevertheless, the visible success of domestic brands prove that it is, indeed, possible to make a Polish brand international. The most important factors here include a long term vision of growth, high quality and a carefully crafted expansion strategy.

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Leading the Luxury World of Superyachts Behind every global brand stands a great story, and above all a unique personality. So is the case of Sunreef Yachts. Francis Lapp â&#x20AC;&#x201C; CEO and Founder of the shipyard originates from France, but has lived in Poland for over 20 years. It was here that he found the love of his life, started a family and developed a passi on for sailing. The passion which had been the engine to build the empire of luxury and tailor-made catamarans which now can be found in almost every place in the world.

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Within a few trips to the Zegrzynski Lake near Warsaw, Francis Lapp decided to purchase his own yacht. At the Paris Boat Show, he bought his first catamaran and had it shipped to Madagascar. Next, he opened Sunreef Travel, a travel agency specialising in yacht rentals on the Indian Ocean. The company grew quickly as clients demanded more comfortable and larger catamarans. While trying to source such boats, Lapp discovered that there were no suitable yachts available on the market.

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To the right: Francis Lapp â&#x20AC;&#x201C; CEO and Founder of Sunreef Yachts

Below: Sunreef 80 Carbon Line LEVANTE

in the design and construction of large, customized luxury catamarans. Even though annual production steadily increases, Lapp remains focused on build quality rather than quantity. Innovation, at the very core of Sunreef’s vision, motivates the construction of two new models each year. 2010 was a very special year for the company with the launch of two superyachts exceeding 100 feet LOA: IPHARRA and CHE. These stunning yachts have certainly made an indelible mark on the superyacht world, and prove that catamarans are a fantastic alternative to super and mega yachts.

Franciss Lapp with Sunreef Yachts Management Team

This inspired him to get involved in building large, custom, luxury multihulls. His flourishing company, HTEP POLSKA, provided financial resources that allowed him to invest in his new business and start his lifelong adventure in yachting. He opened a shipyard in Gdansk, a city with ancient traditions in naval construction and with an experienced workforce. Charmed by the city’s rich history and splendour, he dropped his anchor on the Polish Baltic coast. In 2002, construction halls were leased in the famous

Revolutionary 210 Power Trimaran Concept

Gdansk shipyard, with construction work commencing soon afterwards. The first, highly innovative, luxury catamaran, Sunreef 74, was launched in 2003, and became the shipyard’s ticket to all major yacht shows in Cannes, Monaco, Miami, Fort Lauderdale, Palm Beach and Genoa. Sunreef 74 debuted as the world’s first oceangoing catamaran with a flybridge equipped with a centralized helm station adding a deck level that considerably expanded living space. Today almost 70 yachts, sailing and power, are cruising worldwide and spreading the unique Sunreef touch around the globe. The company is now the world leader

In 2011, Sunreef Yachts introduced a new cruising catamaran model, the Sunreef 58, and two new models completed in 2012: the 60 Sunreef Power and Sunreef 82 Double Deck. In 2013, the shipyard introduced a new sailing superyacht model based on light displacement, performance and speed, the Sunreef 80 Carbon Line and “ready-to–sail” vessel Sunreef 60 LOFT. Moreover, the company unveiled two revolutionary superyacht concepts – 210 Power Trimaran and ultramodern sailing catamaran 165 Ultimate. The key to the company’s spectacular success is due to a combination of several factors: activity in a niche market sector, locating the design office and production facility under one roof, availability for client meetings at all times, high quality custom finishes, and innovate solutions for each client. Sunreef also has a wide range of support services

that are highly appreciated by owners: yacht charter, yacht management, and after sales service with technical support. Currently, the company based in Gdansk has also representative offices in Miami, Shanghai and Dubai. Having spent almost half his life in Poland, Lapp has been able to create a strong and motivated team to carry out his innovative vision with unstoppable passion. The Sunreef shipyard is his big dream, and every, single yacht launch is a powerful moment for him. He likes to stress that he is proud of his adopted country and proud to sign his creations MADE IN POLAND. |

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Rebellious, Superb, Classy Rage Age by Czapul is a Polish luxury brand for people conscious of the importance and the power of clothes, who are unafraid of challenges and following the compass of their own, unique style.

male horizon last season. The vision of an arrogant rebel was accompanied by suggestions for the fair sex. Strong personality, self confidence, and most of all a natural stubbornness - these are the characteristic traits of the woman that Rafał Czapul designs for. Moreover, since its first collection, the rebellious avant garde of Rage Age has been accompanied by quality and care about details. Rigid selection of fabrics and high expectations are the distinctive traits of Czapul, who took his first designing steps at Vistula. This is where he met Rafał Bauer, the president of the company at that time, with whom, at the end of 2008 he was to create the first brand in Poland addressed to niche customers who are uninhibited in experimenting with fashion.

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Rage Age boutiques can be found in Warszawa, Łódź, Poznań and Katowice. March 2014 witnessed the creation of the first Rage Age Woman salon in Poland located in the already cultic Old Brewery (Stary Browar) in Poznań, and in this way the brand has marked its presence in the sector of women’s fashion. The brand of Rage Age by Czapul appeared on the market when the fashion industry was suffering from a major crisis. The year 2009 was favourable for the creation of new businesses. All you needed was experience and determination and most of all a strong vision that left no room for illusions, and that the undertaking would address the niche market of luxury goods for men in Poland. ‘After a number of years spent in management positions in Vistula and Wólczanka I acquired experience in working in the clothing industry. When I left the company I wanted to continue my development strategy believing that it is possible to create an exclusive Polish brand. Rafał Czapul was of the same opinion’ -says Rafał Bauer, founder of the brand, investor, and the President of Próchnik S.A. that Rage Age recently became a part of. Rage Age was created from a connecting of the business intuition of Rafał Bauer and the talent of Rafał Czapula, a brand’s shareholder and a designer who, since the early beginnings of the brand was persistent in creating a vision of an open man who enjoys the comfort of high quality suits, jackets and coats, a man who is not horrified by a bit of rage in casual wear. At the beginning the offer of Rage Age was addressed exclusively to men. However the brand, famous for its rebellious style, moved beyond the

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Therefore, from the beginning the quality was of key importance to Rafał Czapul and it is still treated in an uncompromising way at Rage Age, with respect to both details and finishing as well as fabrics from the best international producers such as Albini, Pontoglio and Honegger. The following seasons bring surprises when it comes to materials such as the unique pony leather used in the production of winter boots, or the difficult to find raccoon dog fur adorning jacket collars in the autumn/winter 2013 collection. Waxed cotton, sheepskin - the designer definitely does not limit his choices to standard solutions. The product mastered by Rafał Czapul required an unusual setting, and that is why the concept of the brand was formed in a way the stresses its exclusivity on several independent levels. Limited, appearing in short series collections, unavailable for on-line sale - these are the caprices that, in times of a consumption glut, can be afforded only by luxury brands. The proverbial dot over the ‘i’ and the last constituent of the

Rage Age is the story of the brand and particular collections introduced to the market. ‘We started with some historical context which today no longer matters. Each of our collections has a distinctive story, we pay considerable attention to detail, and we believe that our product speaks for itself. What is the horse like, everyone can see – you can see it, you can confront it directly, and the Rage Age brand by Czapul comes away from the confrontation completely unscathed. This practise shows that if someone buys our product, he becomes our devoted customer,’ Rafał Bauer concludes. Every season Rage Age takes its customers to a different, unusual place. There has been a military ‘Gibraltar Base’ (spring/summer 2011), an arctic ‘Spitsbergen Experience’ (autumn/winter 2012), and a ‘Voo Doo Touch” collection photographed in the tropics (spring/summer 2013). In the season spring/summer 2014 it is time for an expedition to the Californian Palmdale. We captured the modern, rock spirit of Rage Age in the Joshua Tree national park.

lance. Recalling Lady Rolling Stones, as this was the name of the exceptional woman, shows that irrespective of the season and gender, the fierceness characteristic of the Rage Age brand becomes a tangent for all collections. From season to season Rage Age by Czapul keeps on strengthening a demonstration of rock inspirations and each time it perfectly matches the taste of the brand’s customers. It is good that a player treating the fashion industry in an uncompromising way has appeared on the Polish fashion market. Courage, persistence, perseverance—these may be the keys to the success of this original brand. |

It would not be an exaggeration to say that the most recent collection RAGE ROCK STARS is a fashion alley of fame. The characteristic styles of Keith Richards from the Rolling Stones, Iggy Pop, or Sergio Pizzorno from Kasabian, became a direct inspiration for the collection, in which rock is also a women’s thing. After all, it is women who stand behind the success of the rock men recognised all around the world. Let’s take, for example, the extraordinary partner of Richards, Anita Pallenberg, whose style balances on the edge between hippie and rock noncha-

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First in Luxury since 1991 Quality Missala Perfumery is the family business founded in 1991. Its founder, Stanisława Missala, together with the beginning of democratic changes in Poland, decided to create a unique place in Warsaw, a place which has previously not existed: exclusive, luxurious and offering only top quality products. She signed the contracts with selective cosmetic and perfume brands such as Chanel, Dior, Guerlain, Kanebo, Lancôme and La Prairie and named her boutique Quality. A few years later Stanisława Missala opened a perfumery in Warsaw Marriott Hotel. The boutique became a flagship of the company, a symbol of the new reality and the new way of life. This place has gained the popularity very quickly with a wide offer of luxurious cosmetic and perfume brands. Stanisława Missala assured her customers not only attractive, sophisticated products, but also unique atmosphere and superior service standards, for example by organizing regular concerts of classical music in her perfumery.

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Starting its cooperation with Amouage in 2004, Quality Perfumery became the precursor of elite niche brands in Poland, which are available only in the most luxurious and carefully selected sites in the world. This concerns both fragrances, skin care and make-up products. Thanks to involvement of the entire Missala family, more than 70 unique brands were brought to Poland such as Annick Goutal, Bellefontaine, Clive Christian, Creed, Kilian, L’Artisan Perfumeur, Maison Francis Kurkdjian, Menard, Montale, Nasomatto, Puredistance, Roja Parfums, Visoanska, Xerjoff and many, many others.

To the right: Ms. Stanisława Missala, the founder of Quality Missala Perfumery and the creator of Missala Qessence perfume

Below: Quality Missala Perfumery located in KLIF Fashion House in Warsaw

In 2011, celebrating the 20th anniversary of its foundation, Quality Missala Perfumery created its first fragrance, Missala Qessence. Qessence – the first and the only luxurious perfume created by the Pole - is the result of many years of Stanisława Missala’s relations with an extremely beautiful and immensely rich world of perfumes. That is why Qessence is the essence of her thoughts, explorations and values that she professed while creating the Quality brand. “For years, I have been watching as fragrances change people and their approach to life. They help shape their image and achieve success in love, personal life, at work. I discovered that perfumes are not only a simple set of fragrance notes – there is something more concealed beneath. While dreaming about my own perfume, my intention was to create a rich and deep fragrance that will help people be bold enough to pursue their dreams and achieve what they desire the most.” – said Stanisława Missala. Today, Quality Perfumery is one of the most important perfumery in Europe and the distributor of niche brands in Poland. |

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25 x Personal training sessions 2 x Dietetician appointments Free towels and water Training diary Before & after report Two months duration and club membership Concierge service

FOR MORE INFORMATION WE CORDIALLY INVITE YOU TO CONTACT Corporate Wellness Executive Paula Stamm tel: + 48 502 677 360, paula.stamm@jatomi.com and Corpoline tel: +48 22 250 22 25, corpoline@jatomi.com

Copernicus – Polish Spirit, Swiss Precision Firstly, it was a passion. Passion for watches, as mechanical devices – beautiful, intricate and slightly magic, as masculine jewellery items, being one of very few in men’s wardrobe, defining status, personality and sense of aesthetics. The idea of creating a Polish watch brand stemmed from observation that such a brand does not exist and there is a niche for it. Unfortunately, Poland is not a country having strong watchmaking traditions. The creators of the company decided to produce the watches they would like to wear themselves and to fill a certain market gap, as there are plenty of potential customers interested in watches labelled “Made in Poland”. Products from our country are rarely perceived as luxurious. It would be interesting to contradict the prevailing opinion and, on the principle that exception proves the rule, to prove that production of watches may not be necessary Swiss or German domain.

The patron of the brand, Nicolaus Copernicus symbolizes

phire glass. What is worth attention is that digits placed on dial of the watch are identical to the ones in date window, which is rare and tells about special attention devoted to details. The watch comes in several colour versions. “Flagship” series uses well known Swiss movement with manual winding Unitas 6498 in top finishing, visible through transparent case-back. Steel case is 44 mm in diameter and is equipped with two-sided sapphire glass. Typical hands of the watch add its charm, as they portray ship’s instruments, especially depth meters of the submarine. Case, dial, hands and crown were made according to authorial design of Copernicus. Flagship series consists of three models: slightly extravagant “Mono”, with single hour-minute hand, “Regulator”, based on astronomical and scientific clocks with large minute scale and separate small hour dial, and “Triple” model with more standard pattern of dial and hands.

turning point,

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scientific discoveries, independence of thought and broad interests. A watch should not be impersonal. Many other companies offer “only” watches, while brand names The patron of the brand, Nicolaus Copernicus symbolizes turning point, scientific discoveries, independence of thought and broad interests. A watch should not be impersonal. Many other companies offer “only” watches, while brand names stylized into surnames tell nothing and do not associate with anything. Company name, referring to famous Polish astronomer is supposed to emphasize Polish but also international and timeless nature of the brand, which is related to internationally recognized figure, whose contribution to the development of science is beyond doubt. We offer watches belonging to two series: suit watches “Copernicus Atlas Classic” and casual watches “Copernicus Flagship”. For the needs of watches “Atlas Classic”, a Swiss automatic movement ETA2824-2 in top finishing was applied. Case of this watch is 40 mm in diameter. Its charm lies in its typical digits, associating with decade of sixties. Movement of the watch can be observed by sap-

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stylized into surnames tell nothing and do not associate with anything.

Every model of the watch has certain Polish inspirations. “Copernicus Atlas Classic” refers by its name and design to the “Atlas” watches, manufactured in Poland in 60. Thus his popular design in the “vintage” style. Copernicus is addressed to those who have some knowledge on watches and expect originality, uniqueness, and want to feel proud of wearing w Polish watch. The company is guided be the maxim: “You don’t buy the watch, you buy the story”. As we are Polish company, we to tell Polish stories. We want to tell a story through design of our watches but also reawaken memories and connotations, even provoke. We want to show that Poles are able to create high quality and elegant products. We intend to promote interests in Polish things which are considered to be luxurious. We would like to encourage Polish people to pay more attention to mechanical watches. Our ambition is to become one of the representatives of manufacturers producing goods “from the top shelf”, which promote our country in the international area. I

Driven by Passion

Journey in Bentley is a time you want to last forever. There’s nothing in automotive luxury you won’t find in this engineering piece of art. I like the Breitling watch in the middle of the dashboard as well as the retro-looking aluminium air vents. I would call it an experience you’ve got to pass through if you want to recognize yourself a person that cut his teeth on supercars. We’re arriving at a lovely manor at the Vistula river shore. A healthy, three course lunch at the patio gives us an opportunity to rewind and share the experiences. Other drivers seem like true sport cars enthusiasts – everyone has something interesting to say.

I adore my Porsche. 400 bhp, all-wheel-drive, timeless look. Although, it’s my dream car, there’s always a temptation to try something else. To find out what, I decided to take part in Supercar Day organised by Supercar Club Poland.

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We’re leaving the Warsaw Hilton’s garage. There are two Ferraris, Lamborghinis and Chevy Corvette in front of me and 911 Turbo, Bentley and roaring Maserati MC Stradale behind. Rolling through the streets of Warsaw, we’re attracting everybody’s attention. This city got used to exotics but not nine of them at the same time! Motorway sign releases exhaust explosions. Nissan GT-R. I chose it for the beginning as, according to the press, it’s supposed to be the Porsche alternative. Such statement could only be formed by someone who didn’t spend much time in “Godzilla”. Apparently, GT-R turns out to have racer’s guts in everyday shell. It’s extremely quick, but not as half polished and enjoyable to drive as Porsche. It’s my turn to tame the raging bull - Lamborghini Aventador. Lambo gives the impression of a living muscular organism. It’s a constant fight with it, even on a straight line, even with its’ four-wheel-drive. Going down to the creek in the forest. A wolf or falcon - everything I would expect at this point, but not waiters and trays filled with steaming espresso. I’m sold! Now Corvette Cabrio. Compared to claustrophobic Aventador the unlimited headroom, wind in my hair and lazy soundtrack of muscle car encourages to laid-back journey. Perfect preparation for 911 Turbo which, for a change, sounds like a vacuum cleaner, but when it comes to performance it holds your blood circulation. I often wondered if that “Turbo” badge is worth the 50% price difference comparing to standard 911. Yes. It is.

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Back behind the wheels. Starting with digital Ferrari Italia which eight cylinder symphony overwhelms me. Such a fantastic car to drive but not my type though. Now it’s time for Maserati Granturismo MC Stradale. A standard Granturismo is a kind of predictable car, but Stradale is a roaring beast astonishingly beautiful and surprisingly comfortable at the same time. Alternative for Porsche? Switching to Lambo Gallardo is a watch-out-what-youwish-for experience. Even though it has always been my dream car, I’ve found it a twelve minutes car – after that time you beg for a halt. But for those 720 seconds – God, you feel alive! Finally a party cracker – Ferrari F12 Berlinetta. With its’ 740 bhp it’s the most powerful car I’ve ever driven, I struggle to describe how much fire power there is coming out from this V12-engined beast. And then it all translates to road through rear wheels making it as effective as GT-R and Porsche. My reflections after Supercar Day? I’ll never buy a supercar after a short test drive. Secondly, I will think twice before I buy a supercar at all – there are much more effective ways to enjoy it. Last but not the least, I love supercars! Phil (Brit living in Warsaw)

Calendar of events on the Polish market of luxury goods

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ÂŠ Courtesy of KPMG in Poland

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Luxury Brands Fall 2014

in Poland

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To advertise contact: Wiktor GliĹ&#x201E;ski at wglinski@biznespolska.pl, or call (+48) 694 492 067, or Thom Barnhardt at barnhardt@biznespolska.pl, or call (+48) 508 143 963

www.bizpoland.pl Poland’s government drafts law to support shale gas exploration Poland’s government has adopted a draft law designed to speed up shale gas exploration and reduce dependence on Russian supplies, the prime minister said on 11 March. Donald Tusk said that Ukraine’s conflict with gas supplier Russia adds to the importance of the legislation. Put on fast track, it could take effect this year. “The idea behind the draft law is to make possible intensive exploration and extraction of shale gas,” Tusk said. Tusk said the draft law will simplify and accelerate license procedures for companies. Taxes on exploration will begin in 2020 and should not be higher than 40 percent. A number of major international exploring firms have given up on shale gas in Poland in the past due to tough licensing terms and lack of sufficient data on deposits. Because of the country’s geological make-up, exploring in Poland is also more technically demanding than in the United States, where shale gas industry boomed in the 1990s, bringing gas prices down. Early estimates by the U.S. Energy Information Administration that put

Energy News Poland’s shale gas reserves at 5.3 trillion cubic meters were revised down sharply by Poland’s geology experts to below 800 billion cubic meters. Poland and Britain are the only countries in Europe actively exploring for shale gas.

Tauron in cold storage deal Listed power group Tauron signed an agreement with PSE power grid operator for allocating three power blocks of 378 MW capacity for the so-called cold reserve, Tauron said in a press statement. Tauron`s offer was picked by PSE in early March. Tauron`s unit Tauron Wytwarzanie submitted capacities of blocks #3 and #6 of Siersza plant as well as block #8 of Stalowa Wola plant, the statement read. The deal will allow Tauron to extend the lifespan of these units to 2017 and even until 2019, CEO Dariusz Lubera said as cited in the statement. Poland wants to secure a reserve of power generation capacities as it expects that domestic power production may fall short of demand as of 2016 due to insufficient investments in new capacities and the need to shut down older power blocks, PSE CEO Wojciech Majchrzak said in a statement

in late December. Tauron wants to launch 3,200 MWe of new generation capacities by 2020, the CEO said in the statement citing the firm`s strategy.

Poland to increase natural gas storage capacity to 2.4 bcm in 2014 Poland is working to increase natural gas storage capacity to 2.4 bilion cubic meters (bcm) in 2014 and to 3.3 bcm in 2023 from 2.1 bcm at end-2013, listed natural gas giant PGNiG deputy CEO Jerzy Kurella said during an energy summit in Gdańsk. “We have investment projects of increasing storage capacity to 3.3 bln cubic meters in 2023, Kurella said, citing end-2013 capacity of 2.1 bcm and expected 2014 capacity of 2.4 bcm. Poland will be able to achieve full energy independence around 2017 or 2018”, Poland`s natural gas infrastructure operator Gaz-System CEO Jan Chadam said. “Full energy independence will be around 2017 and 2018 when - as far as natural gas is concerned - we will achieve a state in which we will be able to buy any volume of gas on the European or global market via the LNG terminal, bring it to Poland and deliver any place”, Chadam said.

2014 April

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Energy News Bogdanka miner nets PLN 104.7 mln in Q4 vs. PLN 75.4 mln expected Listed coal miner Bogdanka recorded net profit of PLN 104.7 mln in Q4 2013, above expectations for PLN 75.4 mln profit and up from PLN 35.1 mln recorded in the year-prior period. The operating profit amounted to PLN 117.2 mln, as it jumped from PLN 48.4 mln in the prior-year period and exceeded the consensus by nearly 20%. Q4 EBITDA came to PLN 206.6 mln, up from PLN 120.2 mln in the prior-year period. Bogdanka achieved a considerable reduction of overhead costs, which fell to PLN 23.6 mln in Q4 2013 from PLN 63.6 mln in Q4 2012. Costs of sales were roughly flat at PLN 10.3 mln. Group revenues came in at PLN 481.5 mln, 4.4% below expectations and up 8.6% y/y. Coal sales volume in the period amounted to 2.06 mln tons, slightly below production at 2.11 mln, resulting in a 26.1% increase in inventories to 216.4k tons at end-2013 from 171.6k at end-Q3.

EU behind Mazovia solar power project Some 94.2 million zloty are being invested in the project, with 63 million zloty provided by the EU. At present, 15 municipalities in the region have signed contracts with the Mazovia Regional Board, and another four are due to follow. Solar panels are being installed on both public and private buildings across the region. The first wave of solar investment, which took place in a number of municipalities in western Mazovia in October, already appears to be yielding favourable results. “The solar panels mounted in the municipality on public buildings provide annual savings on energy costs of up to 30 percent,” commented Andrzej Skolimowski, mayor of Przesmyki. “Similar savings can be expected by individual residents who have solar panels on their roofs.” The EU funds were granted under the auspices of the Regional Operational Programme for Masovia 2007-2013 ( ROP WM). The remainder is being subsidized by the municipalities themselves, and individual households typically pay about 1300 zloty, if they want to take part in the programme.

3Legs Resources ready to start drilling next well

Poland-focused oil and gas group 3Legs Resources said that it is ready to start drilling the third and most important well in this year’s drilling programme.

The AIM-listed firm said that logs from drilling of the second well, the Slawoszyno LEP-1 vertical well, confirmed its earlier modelling. The well encountered a Sasino section of similar thickness to that seen in the Strzeszewo LE-1 vertical well, and a Piasnica horizon which is slightly thinner than the same formation encountered at the Strzeszewo LE-1 vertical well. 3Legs said it has agreed with its partner ConocoPhillips to select the Lublewo LEP1 well as the location for the planned long lateral well, Lublewo LEP-1ST1H. The new well “will incorporate the significant amount of knowledge which we have acquired, in relation to our target formations, since we drilled and tested our first vertical well in 2010 and our first two long lateral wells in 2011”, said Chief Executive Kamlesh Parmar. “We continue to work with ConocoPhillips on finalising the completion and testing programme for the lateral well and are satisfied that our 2013/14 drilling programme is proceeding according to plan.”

San Leon Energy agrees Polish partnership with TransAtlantic Petroleum San Leon Energy has struck a farmout deal with America’s TransAtlantic Petroleum, which will see the new partner pay 100% of the cost for a six well programme in Poland. TransAtlantic will earn a 50% stake in nine concessions in Poland’s Permian basin, and it will become the operator. The new partnership is aiming to achieve commercial production from the Permian Main Dolomite and Rotliegendes formations, as well as proving what is described as “huge upside” in the Carboniferous tight gas play. San Leon will also receive cash payments from TransAtlantic as part of the deal. It will be paid US$5mln of back costs, and a further US$5mln once a total of 150,000 barrels oil equivalent has been sold. It is expected that the first well under the joint venture will get underway in June. It will test the Rawicz field, which has been estimated to contain 57bn cubic feet of ‘high quality’ methane gas. “This is a great step forward in quickly bringing our Permian/SW Carboniferous Basin plays to commercial production,” San Leon chairman Oisin Fanning said. “TransAtlantic brings the experience of a proven North American operator with a track record of successfully proving and producing unconventional oil

and plays in Turkey and Bulgaria. The joint venture with TransAtlantic and Hutton will accelerate our activities in Poland while reducing our risk exposure going forward. This transaction further proves San Leon’s long term commitment to Poland and is further validation of our technical and financial commitment to unlocking the significant reserves that exist across our extensive acreage position.” The latest deal is San Leon’s second significant tie-up with an international partner in Poland, and follows last month’s partnership agreement which sees Baker Hughes fund and develop the Siekierki gas field.

Pakistan asks Poland for assistance in coal mining Polish trade delegation headed by Mr Tomasz Tomczykiewicz deputy Minister of Commerce and Secretary of State Poland, held talks with high ups of Punjab Board of Investment and Trade and Finance Department about exploring iron ore. Dr Andrzej Ananicz Polish Ambassador in Pakistan was also present on this occasion. Dr Ali Naveed Pirzada Director General Projects PBIT and Mr Arshad Mehmood Secretary Mines represented their departments in the meeting. DG PBIT Ali Naveed Pirzada briefed the Polish delegates about the working and facilitation provided by PBIT to foreign and local investors. Secretary Mines Mr Arshad Mehmood informed Polish delegates about coal deposits in the Salt Range, where roughly 800 mines are operational. He pointed out few shortcomings in the coal mining process which are primitive mining techniques, small entrepreneurs and low demand of lignite. Secretary Mines also apprised the participants about the bidding procedure for exploring iron ore in the region. The Polish delegates were told that Punjab could have its own steel mill if iron ore is extracted from the Salt Ranges near Chiniot. A 200 MW coal fired power plant was also proposed to power the steel mill. Polish delegation was requested to provide technical and financial assistance in moving ahead with coal/iron ore mining, and also invest in proposed steel mill. The delegation was requested for coal and ore samples for testing. DG PBIT Dr Ali Naveed Pirzada requested the Polish Ambassador to suggest companies which would test and explore the area to estimate n the size of coal and iron ore deposits.

April 2014

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Equities News

Orco abandons Złota 44 luxury real estate project Will sell Złota 44 to … Orco management, who was just fired. Bankruptcy of group on horizon Real estate developer Orco Property Group intends to sell its central-Warsaw luxury residential project Zlota 44 in the coming months as part of the restructuring of its Central European portfolio, the firm said in comments to 2013 results in late March. The luxury residential project Zlota 44 was exposed as a major financial failure for the Group in the fall of 2013, Orco said citing lack of bank financing, termination of the general contractor and unsuccessful sales re-launch on the local Warsaw residential market. Therefore, late in 2013 the Board of Directors decided to terminate this strategy, suspend the works and later to sell the entire project as is and not to complete the development. Orco granted a short term option to OTT Properties (related entity to the former management) to acquire the project. Over 2013 Orco recorded a total of EUR 252 mln provisions, impairments and valuation adjustments, with the impairment on the Zlota 44 representing more than half of that amount. Orco’s liquidity challenged; SPV assets sold in Germany, Hungary, Poland and Croatia • Generally the individual SPVs holding assets are ring-fenced in such a way as the group`s loss is limited to its invested capital and intercompany loans, however due to exposures of OPG relating to parent company guarantees provided to subsidiaries involved in development (principally Zlota) the stability of the group has been substantially challenged. This challenge has necessitated the Board of OPG to seek liquidity through the further sale of shares in Orco Germany and other assets. • On 18 March 2014, the Company`s Board of Directors decided to dismiss and to terminate the executive contracts of Jean-François Ott, Nicolas Tommasini, Ales Vobruba and Brad

2014 April

former management to transfer the Pachtuv Palace hotel in Prague and the Hakeburg property in Berlin (with their related assets and liabilities) at the net asset value as of 31 December 2013 of EUR 8,400,000 including all related shareholders’ loans granted by the Group. As a result of the settlement agreement, Jean-François Ott, Nicolas Tommasini, Ales Vobruba and Brad Taylor resign from all their Board positions and particularly from OPG and OG boards. • The financial difficulties not only generated non-cash impairments but also triggered high liquidity risks as described in the going concern note of the financial statements. Management is particularly concerned by the potential guarantee calls from the banks financing the Zlota 44 projn ect and the Budapest portfolio.

Taylor. Following negotiations and approvals from the Board of Directors of 26 March 2014, the Group and the former management agreed on 27 March 2014 on a confidential settlement and mutual general release agreement by which the Group settled all the existing and future potential obligations and claims arising from the termination and the holding of warrants by the former management. Under this settlement agreement, the former executives will receive EUR 7,150,000 in cash. In addition, settlements in kind (non-core assets) were agreed with the

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Equities News

Ukraine: free-trade deal is expected to go into effect on Nov. 1. This decision has yet to be adopted by the European Parliament in April and then by the European Council. “It is 100 percent that it will be adopted,” David Stulik, the EU spokesman in Kyiv, said. The EU is the final destination for 38 percent of Ukraine’s agrarian exports, while its share in the overall country’s exports reaches 27 percent and is worth €14.6 billion. As a key sector in the Ukrainian economy that brings in hard currency, agriculture accounted for 10 percent of last year’s gross domestic product. Mironivsky Hliboproduct, the nation’s biggest poultry producer, stands to benefit, foresees Dragon Capital’s senior analyst Tamara Levchenko. “The current tariffs for poultry are between €29 and €128 for 100 kilograms, depending on the sort of the poultry. But it’s difficult to predict precise figures, because the European Commission has not provided any details on quotas on these goods.” MHP’s major shareholderYuriy Kosyuk in June said that the company exports more than 30 percent of its poultry production. Moreover, he announced plans to

have exports account for 50 percent of sales. Currently 25 countries purchase MHP products and Kosyuk wants to add five more countries to this list. “External markets are becoming more and more interesting,” he emphasized. Agromars, the nation’s second biggest poultry producer, received EU certification for exports at the end of the last year and is now negotiating with European distributors to initiate sales. Tariff reductions will also be profitable for Kernel, largest sunflower oil producer in Ukraine, and for grain traders. The tariff for sunflower oil is 6.2 percent of the deal price and for grain it is €13 per ton. Cancelling these fees will have a positive impact on local agricultural businesses, concludes Ukrainian Agribusiness Club chairman Volodymyr Lapa. Although welcoming news, Lapa said the European Commission’s statement stops short of liberalizing trade. Several experts pointed out that Europe will not change the most important issue of levying quotas for Ukrainian goods. “The announced measures will lead only to the increase of profits for several companies that were the most prepared for entering the EU market, but the overall amount of Ukrainian agricultural exports will remain the same,” adds Mykola Vernitsky, an analyst at Pro Agro, an agricultural news portal.

Sugar producers will hardly be touched by any EU trade stimulation measures, because inner market prices are 50 percent higher than export prices. Dairy products will not get too many chances from this deal because Ukrainian dairy companies have not received full EU certification yet – they still need to invest a lot on modernization. “The certification process for milk and dairy products, according to EU standards, will continue for two years”, explains Lapa of the Ukrainian Agribusiness Club. For the sunflower oil market the upcoming reduction of EU tariffs also remains unclear. Ukraine exports around 4.2 million tons of sunflower oil annually and only 15 percent of this amount goes to Europe, while India buys 30 percent. “Traders will change destinations only if prices in Europe will be higher than in India. But it strongly depends on quotas which the EU is currently not disclosing,” says Dragon Capital’s Levchenko. Still, the outlook for Ukraine’s agricultural sector is quite optimistic among investors. Since March 11, when the EU announced its plans to cut the tariffs, Ukrainian Exchange Agro Index grew significantly by 27 percent. It’s a composite index that reflects the dynamics of share price changes of the eight largest local agn riculture companies.

Warsaw Stock Exchange with record-high revenues in 2013, up 3.6%

Warsaw Stock Exchange Group generated record-high revenues of PLN 283.8 million in 2013. This represents a year-on-year increase of PLN 9.9 million (+3.6%) as a result of an increase in revenues on the commodity market, which stood at PLN 76 million (+21.3% YoY) accounting for 26.8% of the Group’s total revenues. Management: “In spite of uneasy market conditions and the changing market environment, WSE managed to generate a higher net profit and higher sales revenues at Group level last year. Importantly, this was done without affecting the investment programme; quite the opposite: throughout the year, we were actively implementing new concepts which will contribute tangible benefits to WSE in the future, also in the financial dimension.

We also put a strong emphasis on the diversification of our business with a clear focus on the commodity market. As a result, the share of revenues on the commodity market increased from 22.9% at the end of 2012 to 26.8% of the WSE Group’s total revenues. Despite a significant reduction of transaction fees on the equities and derivatives market introduced in early 2013, the WSE Group’s revenues on the financial market decreased only modestly by 1.4% to PLN 205.3 million. This was mainly attributed to the growing value of session transactions in equities which stood at PLN 220.2 billion in 2013, an increase of more than 17% year on year. WSE’s share in trading in equities in the region of Central and Eastern Europe was 58.5% in 2013 compared to 54.3% in

2012. The year 2013 was a time of continued focused diversification of WSE Group’s activities, including the acquisition of stake in Aquis Exchange by WSE. The net profit of WSE Group was PLN 113.5 million in 2013, an increase of 6.9% year on year. WSE reported a historical volume of trading in structured certificates at 632,791 on 26 February 2014. The previous record of 610,252 certificates was reported on 27 June 2013. The volume of trading in structured products was also record-high on that day at 633,388. The previous record of 610,252 products was also reported on 27 June 2013. WSE held 20 trading sessions in February 2014, the same number n as in February 2013.

April 2014

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Equities News

Kety metals posts PLN 28-30 mln net profit on PLN 395-400 mln revenues in Q1 Listed metal company Kety generated some PLN 28-30 mln group net profit, PLN 43-45 mln EBIT, PLN 62-64 mln EBITDA and 395400 mln revenues in Q1 2014, the company said in a market filing on Tuesday citing preliminary estimates. Kety estimated consolidated EBIT grew by 70% y/y, which the company attributed to margins supported by dynamic recovery on the domestic market and continuous export growth, the filing stated. The net profit estimate translates into a 65-80% annual increase. The firm estimated PLN 395-400 mln top line would constitute an 18% annual increase, the firm also said. All of the group segments enjoyed revenue growth in Q1, with the

construction services and flexible packaging segments up around 10%, the extruded products segment up 22%, the aluminum systems segment up 25% and the construction accessories segment up around 35%, Kety stated calling Q1 a very favorable quarter for all segments of the capital group. Net debt at end-March will amount to around PLN 200 mln, Kety estimated. Net financial position is expected to have amounted to a negative PLN 5 mln in Q1 2014, Kety said. The estimates were based on the assumption of an average EUR/ PLN rate of 4.19, average USD/PLN rate of 3.05 and an average quarterly aluminum price of USD 1750/ton, the filing stated. n

Cyfrowy Polsat and mobile operator Polkomtel presented new technology solutions Listed media group Cyfrowy Polsat and mobile operator Polkomtel presented new technology solutions, including LTE-Advanced mobile internet and mobile TV, the firms said in a joint press

statement. LTE internet with 225 Mb/s speed will be available to regular users if Poland decides to build a single LTE network for all operators, the firms said in n the statement.

Enterprise Investors holds EUR 200 mln for investments, to focus on Poland Private equity firm Enterprise Investors has some EUR 200 mln to spend on investments and could float some of the companies from its portfolio on the WSE, CEO Jacek Siwicki told PAP in an interview. “We currently have some EUR 200 mln in the Polish Enterprise Fund VII, Siwicki said. Enterprise Investors is looking at several potential transaction”, he told PAP. “A clear two-thirds of our capital is invested in Poland and I think we could exceed this level in connection with the situation in the East”, Siwicki said. “The realistic assumption is that we will rather conduct transactions in Poland than elsewhere. The company could float some enterprises from its portfolio on the WSE”, the CEO also said. “In May we will review our portfolio firms ... and depending on the state of the market and their situation we will decide whether and how many companies could hold an IPO”, n he told PAP.

FDI Poland Investor Awards 16 October 2014, Hotel Intercontinental, Warsaw A Black-tie Awards Gala and Forum recognizing top foreign direct investors in Poland.

www.FDIPolandAwards.pl 2014 April

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Equities News

Asseco takes over aquapark; looks at more post-Soviet countries for expansion LIsted IT group Asseco Poland settled its accounts with former shareholder Prokom Investments as of March 18 and became an owner of 98.33% in a Sopotlocated aquapark as a result of this settlement, the company said in an annual report. Also of note: Asseco wants to build up its position in Russia and other post-Soviet countries and eyes African markets, mostly Ethiopia, Nigeria and Angola, CEO Adam Goral wrote in a letn ter to shareholders.

PHN real estate developer signs deal with contractor for PLN 106 million Listed commercial real estate developer PHN signed a PLN 106.8 mln contract for building a 36.8k square meter class A office building in Warsaw with listed builder Unibep, both firms said in market filings. The construction is to be finalized in Q2 2015, PHN said.

Polimex-Mostostal builder hopes to carry out new share issue in summer

The troubled builder Polimex-Mostostal hopes to follow through with a new share issue in the summer, after setting terms of financial restructuring in April, deputy CEO Maciej Stanczuk told PAP. "If everything goes well, it should happen in the holiday period, before September", Stanczuk said of the new share issue under preparation. The process of preparing the new issue will take some more time, the deadlines do not depend only on us, as it`s also a matter of preparing an issue prospectus, filing it with the financial regulator KNF, he said. Issue terms are yet being forged. "We are at the stage of agreeing these matters with our owners, shareholders, as well as financial creditors", the official said. Polimex wants to issue shares for its creditors as part of financial restructuring whose terms should be determined in April. "Debt conversion is inevitable", Stanczuk said. "The burden of debt is too big for us to service today or in the future. I am an optimist and believe that we will be able to reach an agreement on the matter in the coming weeks. I hope that in April we will be able to agree the rules of financial restructuring of which the issue is a part of. Polimex-Mostostal secured

shareholders approval for a conditional issue of up to 430 mln Q-series shares which will be offered to the firm`s creditors midJanuary. The issue price was set at PLN 0.3. Thanks to the issue the firm hopes to convert up to PLN 129 mln of debt into equity.

Midas touch in telecom auction Listed telecom services provider Midas, a sister firm in Zygmunt Solorz-Zak`s media-telco empire encompassing listed DTH operator Cyfrowy Polsat and mobile telco Polkomtel, is mulling participation in the auction of 800 and 2600 MHz frequencies and will make the final call after the auction documentation is published, Midas officials said Tuesday. Midas is also withholding publication of financial guidance for 2014 until the auction question is solved, the firm said.

Multimedia Polska cable plans IPO and return to WSE in Q2 Cable provider of TV, internet and telecom services Multimedia Polska intends to offer up to 49.2% of existing shares in an IPO planned for Q2 2014, the firm said in a press statement. The IPO will consist of shares offered by existing shareholders: M2 Investments Limited, Tri Media Holdings Limited, Dunaville Trading Limited and Collegium Anetta Kolasinska i Wspolnicy, the statement reads. The offering will be carried out in Q2 2014, depending on market conditions, the firm said. The shares will be offered to institutional and retail investors in Poland as well as to qualified institutional investors in the US and other institutional investors outside the US. UBS acts as global coordinator and co-bookrunner, UniCredit acts as co-bookrunner and manager, while Raiffeisen Centrobank acts as co-manager.

Multimedia Polska is one of Poland`s top three cable operators with around 826k clients at end-2013, the press statement reads. In 2013 the group generated PLN 355.5 mln adjusted EBITDA, PLN 70.7 mln net profit and PLN 699.2 mln revenues. M2 Investments Ltd. holds a 51.9% stake in the company, another 46.5% belongs to Tri Media Holdings Ltd., while Dunaville Trading Ltd. and Collegium Anetta Kolasinska i Wspolnicy hold 1% and 0.5% stakes respectively. The firm was previously listed on WSE from 2006 to 2011.

Boryszew to buy plastics firm Industrials group Boryszew signed a letter of intent to buy 80% of Tensho Poland Corporation for EUR 10.6 mln in cash and debt, the company said in a market filing. Tensho Poland Corporation produces plastics elements for consumer electronics and automotive industry.

Ukrainian ag firms rebound as EU cuts customs duties The European Commission has decided to slash custom duties for 82-95 percent of Ukraine’s products. The measure, which could come into force on June 1, was passed on March 11 and is expected to provide a big boost to the sector. “The annual value of this support measure will be nearly €500 million in tariff reductions with almost €400 million accruing to the agriculture sector,” reads the official statement. Adopted ahead of the free-trade agreement that Ukraine is expected to sign with the European Union after the May 25 presidential elections, the new rules will benefit 82 percent of Ukraine’s agriculture exports, 83 percent of food products, and 95 percent of industrial exports. n

April 2014

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Real Estate

MIPIM delegates ‘bullish’ about European real estate market in 2014 The mood at the annual commercial real estate investment fair MIPIM 2014 was overwhelmingly positive with 85 percent of property professionals declaring that they are feeling ‘bullish’ about the European commercial real estate market, according to a recent opinion poll by CBRE. CBRE surveyed more than 300 property professionals at MIPIM 2014 to discover current sentiment in the European commercial real estate market. The survey reveals that of the respondents polled the majority are feeling ‘bullish’ about the European commercial real estate market in 2014. This sentiment compares favourably with 2013, with more than three

quarters (77 percent) describing their current mood as either ‘more positive’ or ‘about the same’ as last year.

Are you feeling bullish or bearish about the European CRE market in 2014? The CBRE survey revealed that the much stronger tone and sentiment in the European commercial real estate investment market is returning to the levels seen in 2007 before the global financial crisis. More than half (53 percent) of respondents stated that they were either ‘more positive’ or felt ‘about the same’ as in 2007.

How would you rate the mood of MIPIM in 2014 compared with 2007? Jonathan Hull, Managing Director, EMEA Capital Markets, CBRE, commented: “The positive feeling was palpable at MIPIM 2014; there is certainly less caution and more confidence. During the first half of

2013, investors were focused on core markets and assets, and the big change we have seen coming into 2014 is that investors are now looking for growth. We have moved away from crisis and investors are beginning to feel much more positive about the eurozone. Where we had a significant divide between the north and south of Europe, we are now seeing recovery and growth.” Respondents were also asked what types of property assets (by sector and market type) were most attractive to purchase in 2014. The spread of answers was varied with a significant majority stating a preference for Offices (40 percent), followed by Retail (32 percent) and Industrial (28 percent) assets. While it is clear that there is still substantial demand for core markets such as the UK, Germany and France (40 percent), those viewing ‘recovering’ (34 percent) and ‘emerging’ (26 percent) as most attractive reflects increased confidence among investors and a desire to move up the risk curve in 2014.

2014 April

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Real Estate If you had to invest in one market type and one sector in 2014, which would it be? The report revealed that investor confidence in Western Europe is up sharply compared with last year, with the market chosen by 71 percent as the most attractive global region for investment. This report revealed significant shifts in geographical preferences, with a strong rise in the proportion (19 percent) of investors seeing Spain as most attractive for purchases in 2014 – up from 6 percent from 2013. Madrid is now in second place to London as the most attractive city for investment, a dramatic change from last year, with Barcelona also in this year’s top ten choices. Investor appetite for opportunities in ‘recovery markets’ is further evidenced by the inclusion of Amsterdam and Dublin among the top ten. Mike Atwell, Head of CEE Capital Markets at CBRE, said: “According to Real Estate Investor Intentions’ Survey, Warsaw ranks in the top 8 destinations of Europe, which real estate investors plan to target in 2014. It shows that CEE real estate investment will continue to focus on Poland, but we see also growing investors’ appetite for other markets in the region.” The report also revealed that offices were the most attractive sector in 2014, recording a notably higher share of the vote (39 percent) than in 2013 (29 percent).

“Heard in the halls of MIPIM” Tomasz Zemla, architect, deputy Director, City of Warsaw “From our perspective it was a fruitful week in Cannes. Warsaw has become for investors the most important city in this part of Europe, for international and Polish as well. We see our local developers as professionals who are able to be competitive partners for international funds - so it means that Warsaw together with them and with international companies - has potential to be a strong player on the real estate market. The residential sector is getting better, which we observe with satisfaction and is again as important as commercial.”

Mateusz Skowroński, City of Katowice

“The city of Katowice exhibited its investment offer on a joint stand with the Metropolia Silesia and the Marshall Office of the Silesian Voivodeship. City representatives held a series of business meetings with investors, property developers, operating and consulting companies i.e: Bouygues Polska Property Development,

Colliers, Cushman&Wakefield, Harpen Holding, Point Park Properties, Dell, Warimpex, Echo Investment, Skanska Property. MIPIM gives the unique opportunity to meet, in a relatively short period of time and in one place, with key private investors for Katowice to discuss many important issues. The city has been promoting its project regarding the transformation of the Roundabout-Market Square Area that is zoned for hotel, office or commercial space as well as other city investment offers including: residential and services space but also manufacturing, warehouse and storage space.

It is thanks to the participation of the city in previous editions of the fairs in Cannes that Ghelamco company constructed in Katowice their office building Katowice Business Point, located in the vicinity of SCC, and Warimpex company constructed Hotel Angelo, located at Sokolska Street. On 12 March during the awards ceremony organised by fDi Magazine English - language bimonthly magazine of the Financial Times Group specializing in the Foreign Direct Investment issues, the Deputy Mayor of KatowiceMr. Marcin Krupa collected the award for the City of Katowice. The ranking “European Cities and Regions of the Future” systematizes every 2 years the European cities by evaluating their perspectives for Foreign Direct Investment development. In the overall ranking for large European Cities Katowice ranked 9th place. “Katowice is seeing strong momentum in our rankings and has improved its position over the past two years,” says Courtney Fingar, editor-in-chief of fDi Magazine. “We have been trying to attract foreign investment to Katowice for years. And I am pleased that our endeavours have been noticed by such a prestigious magazine as fDi Magazine of the Financial Times Group. We have been repeating over and over to the potential investors that by investing in Katowice they get a chance to reach over 2 million people living in our Metropolis,” says Marcin Krupa, Deputy Mayor of Katowice. “This ranking will get worldwide attention from the potential investors and leading consulting companies which, in turn, will lead to the overall increase of interest in Katowice. I highly appreciate and rely on the prognostic value of fDi rankings. We were ranked already high 2 years ago when the fDi experts noticed the investment attractiveness of Katowice as well as the quality of our FDI promotion strategy well before IBM decided to invest in Katowice,” says Mateusz Skowroński, Plenipotentiary of the Mayor of Katowice City for Strategic Investors.

Edyta Fila, Department of Investor Services, City of Poznań “This year at MIPIM we’ve met many new potential partners. Our main priorities are: selling city plots, showing new investment areas, city promotion, and meeting new partners. Next year, we will try to show Poland at MIPIM as an important location by having all of the cities in one

April 2014

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place. This year MIPIM was more interesting and crowded. More than 20.000 paticipants shows that the MIPIM crisis from past years is averted. We hope that with every year it will get better and better. Of course Poznań is focused on selling city plots, finding new partners but also city promotion. One of our key goals is to increase the number of our investors.

Marta Kasperska, Partner & Director, New Business Solutions sp. z o.o. “The first concrete results from MIPIM are two submitted proposals which are being negotiated at the moment and a meeting with another potential client scheduled for next week. The other tangible outcome is a database of direct contacts which in my personal opinion would be impossible to build outside an event like MIPIM, certainly not over just a couple of days. This was my first MIPIM, so I am not really able to compare versus previous years, but I can say I was overwhelmed with positive energy and pleasantly surprised by the general openess in discussing everyone’s business. We are an independent provider of comprehensive outsourcing solutions combining accounting and general business administration services to investors

2014 April

Real Estate

pursuing business operations or holding financial interests in Poland.

Marek Waszkowiak - City of Konin Deputy Mayor “City of Konin is undergoing a period of change. For decades it has been a major centre for heavy industry, brown coal mining and power plants that supplied the whole region with the energy. Recent years show dynamic development in other branches: i.e. construction, RES services or food and agro business. Therefore, the city authorities offer three greenfield areas both for the domestic and incoming companies. Total area is about 69 hectares. On the other hand, local council passed the law that gives various incentives for the companies which create new jobs within the city. Considering the fact that Konin has well-educated, qualified staff there may be the factors that will change the landscape of local economy in the near future. The current major investments, worth nearly 100 milion Euro, focus on the new road network, mainly the 7-kilometer-long part of national road number 25. As it was our first time in MIPIM we focused on showing the city’s potential in areas like transport and logistics or renewable energy source and showed our

greenfield offer. Poland still has a lot of potential and to some of the players it is still relatively unknown market. Konin’s main goals for 2014 are: Selling greenfield areas for incoming investments; Making it easier to invest and make business in Konin; Using effective tools of promotion and lobbying which may result in increasing number of new investors.

Aleksander Czechowski, Marshal Office of Lubelskie Voivodship Department of Economy and Innovation. “In last three months few significant changes had place in our unit. Department of Economy and Innovation has new Director- Mr. Artur Habza and Lublin Investors and Exporters Assistance Centre (COIE) is managed now by Ms. Monika Banka. Further develop of political situation in Ukraine might open new opportunities for warehouse market in eastern Poland. We participated first time in MIPIM and we’ve received very good feedback from most of participators which visited our space. We intend to further extend areas of the Special Economic Zones, and attract more companies from n the BPO/SSC sector.

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FDI News

Volkswagen to spend over $1 billion on new Polish van factory Volkswagen will spend nearly 3.4 billion zlotys on a new factory to build the Crafter delivery van in Poland, moving output out of high-cost Germany in the company’s biggest-ever commercial vehicle project. With construction due to start at the end of 2014, the new plant in Wrzesnia will employ more than 2,300 people and start assembling the Crafter model in the second half of 2016, VW said in mid-March. Production of the Crafter is currently based at two German plants of rival Daimler which have been making the van since 2005 under a co-operation accord with VW that is due to expire at the end of 2016. “By taking the decision to build the Crafter in Poland, we are setting the course for the strategic realignment of our light commercial vehicles,” Leif Oestling, head of VW’s trucks business, said in a statement. Shifting production to Poland will allow the German group, which already makes the Caddy and T5 commercial vehicles near Poznań, to significantly reduce its production costs. Labour costs in Poland’s manufacturing industry amounted to an hourly 6.65 euros per worker in 2012, about a sixth of the 36.98 euros in Germany, according to the Cologne-based IW economic institute.

IFC targets municipal infrastructure in Poland

The International Finance Corporation (IFC), the private-sector investment arm of the World Bank, is returning to investments in Poland with its offer of longterm loans designed to finance development projects, local press reported on Friday. The IFC was active in Poland between 1993 and 2003, before the country received vast amounts of European funding following its EU accession in 2004. Now the IFC will co-finance large projects worth at least 25 million U.S. dollars, including investments in municipal infrastructure. The institution also aims to support entities operating in such sectors as education, private schooling, health protection, agriculture, the automotive industry and energy.

The impact on employment in Germany, if any, was unclear as Daimler intends to use the capacity so far devoted to making the Crafter to expand production of its own equivalent model, the Sprinter, and that was the reason for it to discontinue its agreement with VW. Europe’s biggest automaker has been adding capacity abroad, especially in lucrative Chinese and North American markets, to beef up its network of over 100 plants world-wide.

VW’s two Chinese joint ventures will invest 18.2 billion euros in new plants and products through 2018 while luxury division Audi is spending over 1 billion euros on facilities in Mexico and Brazil as it aims for the first time to build more cars outside Germany than within its home country in 2014. Separately, VW said it will expand production of the Tiguan compact SUV to its commercial-vehicle plant in Hanover n from 2016.

Poland’s presence at EXPO 2015

“Poland” as a brand. The Expo runs from May til the end of October 2015.

The Polish government adopted the “Concept Programme of Polish participation at EXPO 2015 in Milan”. Polish Pavilion, Polish exhibition, Polish National Day and various events will be designed to present Poland as one of the most important members of the EU. PAIiIZ participates in the organisation of the Polish exhibition. President of the Agency Sławomir Majman will be the general commissioner of the Polish Pavilion in EXPO 2015 in Milan. “Feeding the planet, energy for life” is the official motto of EXPO 2015. This year’s EXPO is dedicated to the agrifood sector that is considered as Polish export specialty. Therefore, the Polish offer presented during the event will focus on the latest Polish solutions in organic farming, food processing, biotechnology and environmental protection. The main aim of Poland’s participation in EXPO 2015 is building a solid position of

International Mediation Centre set up to resolve disputes Chambers of commerce and industry which connect foreign companies and Polish partners established a joint initiative – the International Mediation Center (MCM). The mission of MCM is to promote the highest standards of nonjudicial resolutions for litigation in business. MCM is a non-judicial platform of resolving issues and it is available to all parties especially for members of chambers. Declaration of the establishment of the International Mediation Center was signed by: Belgian Business Chamber, British Polish Chamber of Commerce, French Chamber of Commerce and Industry, Italian Chamber of Commerce and Industry, and the Polish Spanish

April 2014

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FDI News

Belarus-Poland trade and investment group to meet in Minsk 2 April The Belarusian-Polish working group on trade and investment will meet in Minsk on 2 April, according to Spokesman for the Foreign Ministry of Belarus Dmitry Mironchik. The group makes part of the joint Belarusian-Polish commission on economic cooperation. The Belarusian delegation will be led by Deputy Foreign Minister Alexander Guryanov. The Polish part of the working group is headed by Deputy Economy Minister Andrzej Dycha. The working group will consider the current bilateral trade and economic cooperation, including in the industry, transportation, financial and insurance fields. A business forum is scheduled for 3 April with the participation of Belarusian and Polish businessmen. In 2013 the trade between Belarus and Poland totaled $2.371 billion. Poland is Belarus’ seventh biggest trade and export partner and its fifth in terms of imports. n

Chamber of Industry. The project is also supported by the Ministry of Economy.

Automotive factory opens in Euro-Park Mielec Industrial Development Agency (ARP) has issued a permit to Kirchoff in Euro-Park Mielec SEZ. The investment in the expansion of automotive body components’ factory will cost PLN 24.5m. The company plans to create at least 12 new jobs. It is the third time when Kirchoff receives an investment permit in Euro-Park Mielec. The new investment project will include expansion of the existing hall, and implementation of new equipment that allows launching production of a new range of car body components for such brands as GM, Ford, VW, Daimler, BMW or Audi. Kirchhoff Poland belongs to the international concern Kirchhoff Automotive. The company has been operating in Euro-Park Mielec SEZ for 15 years.

Zhejiang – Poland Matchmaking Forum On 27 May Regent Hotel in Warsaw will host the Zhejiang (China) - Poland Matchmaking Forum. Zhejiang Provincial Governor and the Polish Ministry of Economy took patronage over the event. The programme of the Forum includes session of individual

2014 April

business meetings of Polish and Chinese entrepreneurs from Zhejiang. Companies interested in participating in the event should register until 14 April at www.gochina.gov. pl/Zhejiang_forum. China Council for the Promotion of International Trade (CCPIT), PAIiIZ and the Embassy of China are the organizers of the Forum.

South Africa – Gateway to Africa “While planning to invest in Africa, you can’t omit investing in South Africa”, argued deputy Minister of Economy Ilona Antoniszyn-Klik, during the Poland-South Africa Economic Forum held in mid-March in Warsaw. Vice-president of South Africa Kgalema Motlanthe was the guest of honour of the event. He paid a visit to Poland together with South African entrepreneurs. Mrs Antoniszyn - Klik told the audience that for Polish businessmen South Africa is the most important economic partner in Africa. Comparing to the region, the country has a well-developed business culture and advanced automotive, legal and financial sectors. South Africa has also one of the leading stock markets in the world. Moreover, it is also a regional logistics hub. Business opportunities are waiting for Polish investors in the automotive industry,

tourism, renewable energy, biomedicine, jewellery industry and even in the fashion business. For Poland, South Africa is “the gateway to Africa”, argued Johannes Hlongwane representing the National African Federated Chamber of Commerce and Industry (NAFCOC). He also said that for South African entrepreneurs, Poland is an attractive market. “Poland is in a group of 50 countries with which we have the biggest trade relations”, said Yunus Hoosen, director of Investment Promotion & Facilitation, Trade and Investment South Africa. The guest of honour of the Forum, vice-president of South Africa, Kgalema Motlanthe said that signing a tripartite agreement between South Africa, Poland and another African country is also planned. Mr Motlanthe also stated that South Africa is interested in the know - how exchange, especially in maritime transportation that Poland is advanced in. After the official part of the Forum, B2B meetings were held. They were attended by over 160 representatives of the Polish business and more than 50 representatives of South African business. Poland - South Africa Economic Forum has been arranged by the Ministry of Economy, PAIiIZ and TISA. The Agency was represented by PAIiIZ president Sławomir Majman, who opened

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FDI News

Launch of Bydgoszcz Regional Development Agency Bydgoszcz Regional Development Agency (BARR) that was established in November 2013 has been officially opened on 12 March. BARR aims to promote the city of Bydgoszcz, to support business activities and to attract new investment projects that will lead to the creation of new jobs. The Agency’s mission is to provide all actions that will contribute to the economic development of Bydgoszcz. Thus, BARR will provide comprehensive services for investors, cooperate with companies, business organizations and support SME sector. The Agency will also play a role of economic think-tank centre in the city and the region, cooperating with academic centres, consulting agencies, PAIiIZ and local government and business represenn tatives.

the event. One day before the event representatives of TISA and South African entrepreneurs visited Solaris Bus & Coach, CenturyLink Technology, General Motors, Farmur, Kopex and Izodom 2000, which operate in Poland. They also paid a visit to the Katowice Special Economic Zone and the Łódz Regional Development Agency.

Special Economic Zones expanding

On 18 March, Polish government issued a regulation extending the boundaries of two Special Economic Zones: the Pomeranian SEZ and KostrzyńskoSłubicka SEZ. Due to that Pomeranian Special Economic Zone will cover 1,452 hectares, while Kostrzyńsko - Słubicka will increase to 1,715 hectares. Changes of boundaries in Pomeranian SEZ should lead to the creation of over 270 new jobs in the area and to maintaining the existing 1386. In the increased by 151 hectares Kostrzyńsko-Słubicka SEZ, it is expected that the number of new jobs will grow even by 4400 during next years. Moreover, the value of all new investments in KSSEZ area should reach about PLN 1292.50m. Private plots in Krosno Odrzańskie and Wągrowiec will also enter the zone to support two, incoming investment projects. The first one is Homanit Krosno that is a fiberboard manufacturer. The company plans to invest PLN 211,60m and create at least 20 new jobs. Under the second new investment, worth PLN 93.10m, Polinova Poland an upholstered furniture plant in KSSEZ will be introduced.

Diagnostics investment in Kraków Technology Park Radionka received a permit to operate in the Kraków Technology Park. The entrepreneur will invest nearly PLN 10 million and create at least 4 new jobs. Under the project, an office building will be built. The company will also buy diagnostic equipment and introduce R&D programmes. Radionka is a manufacturer and supplier of radio communications equipment for railways. The investor cooperates with AGH University of Science and Technology in Kraków. This partnership allows the company to implement modern and advanced technical solutions.

Tunisia and Algeria in cooperation deal with Poland Signing a Memorandum of Understanding and participating in B2B talks were the main highlights of a business mission of Polish companies from Eastern Poland to Tunisia and Algeria. On 6 March, Tunisia held a meeting on the economic potential of Eastern Poland. During the event, in the presence of the Tunisian Minister for Industry, Energy and Mining, Kamel Bennaceur, PAIiIZ deputy president Bożena Czaja signed the MoU with the Foreign Investment Promotion Agency – the Tunisian counterpart of PAIiIZ. The agreement was designed to strengthen the exchange of economic experience and to increase trade relations between the two countries. Among the attendees of the business trip to Africa there were 10 entrepreneurs representing the food, furniture

and agricultural machinery sectors from Eastern Poland. Polish businessmen also took part in B2B meetings. The business mission to Tunisia and Algeria was organised as part of the Eastern Poland Economic Promotion Programme by PAIiIZ.

Ursus in agricultural technology quest The Ursus tractor factory has signed a cooperation agreement with the Military University of Technology in Warsaw (WAT) and FON-SKB in Radomsko, extending its existing cooperation. The aim of the agreement is to extend cooperation on the development of a technology programme for building modern agricultural equipment, as well as transferring know-how between experts from WAT , Ursus and FON-SKB. Cooperation between the three bodies will accelerate the process of construction and launch of a new series of products such as transmissions for medium-power range tractors, used in Ursus machines. FON-SKB owns the most modern iron casting plant in Poland, along with processing centres, which will help its partners carry out common R&D projects quickly and efficiently.

Automotive investor in Kamiennogórska SEZ Kamiennogórska SEZ has issued its 106th permit to do business. It went to CM-3 Polska, which will invest nearly PLN 6.5m there. CM-3 Poland will build a production and warehouse hall and equip it with modern machinery. The company operates in the automotive sector, producing storage

April 2014

www.bizpoland.pl containers used in the transportation of components for further manufacturing process.

Films and Movies – the newest FDI opportunity? Central and Eastern Europe has a great chance to attract a new kind of foreign direct investments – film blockbusters, according to new research from PAIZ. Revenues of the international film industry are growing and Hollywood is looking for cheaper places to produce under$100-million budget movies. The world’s film industry is experiencing a time of prosperity. In 2012, total revenues of cinemas around the world amounted to $34.7 billion, 6% growth year-on-year. However, due to rapidly rising costs, the production of blockbusters in the American “factory of dreams” has become unprofitable. Thus the film industry has started to search for new, attractive and cheaper locations and found them in the CEE region. Central Eastern Europe can offer not only beautiful, historic surroundings and lower cost of filmmaking, but also good investment incentives. Among the most popular film destinations there is Hungary, Bulgaria and the Czech Republic. The last one is considered as the Hollywood’s “back office” in this part of the world. In 2010, Poland’s southern neighbour introduced a special system of incentives for foreign film investors. In 2013 the Czech government invested $25m in the programme. Recently, Poland has been chosen by filmmakers, mostly from Bollywood, while the last American blockbuster - Steven Spielberg’s “Schindler’s List” was made in Poland 20 years ago.

“INVEST-PARK” brings in new jobs A further PLN 14m are to be invested by Electrolux and Sacher in Wałbrzych SEZ. Under new investment, Electrolux’s factory in Świdnica that employs 800 people to produce gas, gas-electric and electric stoves, will be expanded and equipped with new machinery. The company also plans to create 30 new jobs. The value of Electrolux’s investment will reach PLN 11m. For Sacher this is the next investment permit. The company has been in the market for 15 years. Since the beginning of its activity under the SEZ programme, Sacher has increased employment by 50%. The new investment will be worth nearly PLN 3m and will cover the costs of the expansion of the factory in Bolesławiec as well as of a new machine park.

2014 April

FDI News Automotive components in Legnica Voestalpine Rotec, a supplier of piping components for global automotive manufacturers, will invest PLN 6m in the Legnica Special Economic Zone. The firm will build a new factory in the LSEZ. Voestalpine Rotec already owns a plant in Komorniki near Środa Śląska, where since 2001, it has been producing metal parts for shock absorbers used by Ford, Mercedes, Skoda, Volvo, Nissan, Renault and Peugeot cars.

Three companies expand in Pomerania Three companies have been given permits to operate in the Pomeranian Special Economic Zone. MMP Neupack Poland, specialising in the production of offset packaging made of cardboard, and Gemalto and PanLink from the electronics sector will invest PLN 75m and create 60 new jobs.

and vegetable industry. The announcement was made by Prime Minister of Poland Donald Tusk at the meeting with his Moldovan counterpart Iurie Leanca.

Philips lights up Warmia-Mazury Philips Lighting has received permission to operate in the Warmia-Mazury Special Economic Zone. The project will see Philips’ factory modernised and ready to produce lighting fixtures and energy-efficient LEDbased flash. The company plans to invest PLN 50m and create 70 new jobs. The Philips Lighting factory in Kętrzyn specialises in the production of street, commercial and industrial facilities’ lighting.

German social-lending platform enters Poland

Delphi Technology Park Poland has been created in Ostrów Wielkopolski to carry out R&D activities by the Delphi company and other local parties. In the new facility, innovative technologies and heat exchange products for the automotive sector will be developed. Delphi Technology Park Poland was designed to encourage local entrepreneurial activity in the Wielkopolska province. It is aimed at organisations working within the business environment, such as incubators, chambers, training and consultancies. The cost of the investment is PLN 24m. The opening of the R&D centre is planned for the second quarter of this year.

Lendico, a German social-lending platform, will enter Poland. This is the next project of Rocket Internet, a company known for such Internet start-ups as Zalando and Groupon International. Lendico allows individual clients to take out a loan on the basis of social lending. It also allows users to give loans to other users and invest in the financial sector, that, til recently, has been dominated by traditional banking institutions. Due to an innovative algorithm, users are thoroughly validated. In Germany, repayment rate on Lendico platform is 98%. “We want to become an e-alternative for banks. Our lending marketplace does not only help to lend money, but it connects those who want to raise their cash flow with investors who count on high returns”, says Dominik Steinkühler, Lendico co-founder and MD. Poland is the third country, after Germany and Spain, where Lendico operates.

Moldova-Poland Investment Forum

Freelancer.com acquires largest Polish freelance marketplace

Polish Prime Minister paid an official visit to Chisinau, Moldova in late March. Donald Tusk met with the Moldovan Prime Minister Iurie Leanca and participated in the inauguration of the Moldovan-Polish economic forum where a number of bilateral agreements are expected to be signed. The PM also had meetings with of the President of the Republic of Moldova Nicolae Timofti, as well as with the Speaker Igor Corman. Poland will allocate 132,000 euros for retooling of the National Television’s Studio Nr.1 and to support the opening of a center for rural development in Moldova, as well as to provide a loan for the development of animal husbandry

Freelancer.com announced in mid-March the acquisition of Poland’s largest freelance marketplace dedicated to online work, Zlecenia.przez.net (Work through the Net). Founded in 2004, Zlecenia. przez.net is Poland’s leading marketplace dedicated to a range of online categories of work. The marketplace has grown to over 85,000 users who have sent over 1.1 million proposals to 115,000 projects posted on the site. The marketplace`s founders, Karol Kruzelecki and Slawomir Magdziarz, were pioneers in the online freelancing industry, with the concept being entirely new in central Europe when the first beta version went public on n March 1, 2004.

Delphi in R&D deal in Ostrów Wielkopolski

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Cities News

Tricity

A major international amber fair ended in late March in Gdańsk with rising prices of the translucent fossil resin amber, which has become more popular in recent years. More than 450 exhibitors from 17 countries and regions attended AMBERIF 2014, the 21st International

The AMBERIF fairs are accompanied by many events, including a series of seminars and conferences and competition. This year`s contest for the Amber Business Partner Award and the honorary title was won by Vivian Yang, owner of SAGE Amber Ltd. of China. The Baltic amber has been highly valued since the Roman Empire, when the Amber Road connected the Baltic Sea with regions as far as the Black Sea, Syria and Egypt. The Baltic amber dates back to 44 million years ago and its deposit, estimated at around 105 tons, is the biggest in the world. Amber is a fossilized tree resin, defined by five classes, according to their chemical constituents. Due to high amount of succinic acid, the Baltic amber has unique color and transparency. Apart from aesthetic function, it is well known for its healing power. The biggest amber producers are Poland and Russia. The interest in the Baltic amber in China is recently growing at a fast pace. Some of them tend to buy amber as a form on investment. According to Krzysztof Lalik, a co-owner of Golden Amber company, the prices are about to increase even more, as the demand for the material is constantly growing. “The rocketing prices of gold and silver will have a big impact on the activity of amber companies. ... Taking into

Fair of Amber, Jewelry and Gemstones, presenting their products at the world`s biggest amber fair. Buyers and visitors, most of whom are jewelry store and gallery owners and wholesalers from more than 50 countries and regions, all came to Gdańsk to look for unique amber jewelry. Apart from Baltic amber, the fairs offer included silver, gold and gemstones. The AMBERIF fairs are held in Gdańsk, traditionally connected to amber. Every year, Gdańsk is a host to two big jewelry fairs, the other one, AMBERMART held in autumn.

account the low supply and high demand, especially on the Chinese market, further growth is highly likely”, he said. There are other factors causing the increase of amber prices. One of them is the fact that Polish and Lithuanian manufacturers have no access to Russian material. In the autumn of 2013, Kaliningrad amber plants in Yantarny area on the Sambian Peninsula withheld the export of amber. Therefore, Polish manufacturers were cut off from supply. While the amount of material on the market is declining, the need for amber among the Chinese and Arab buyers is

ThyssenKrupp to hire 800 people in Gdańsk for new Shared Services centre German industrial conglomerate ThyssenKrupp announced plans to open a new Shared Services centre in Gdańsk, with plans to hire 800 people. Gdańsk as the favored location beat out other Polish cities such as Wrocław, Poznań, Katowice and Szczecin. “The company has decided that in Gdańsk we will be “the biggest fish in the pond”. In Wrocław we would not be perceived as the city’s most attractive employer, because many great companies such as Credit Suisse, BNY Mellon and HP already operate there, providing more complex processes”, said Nicola Roettger from the press office of the company.

Amber fair ends in Gdańsk, prices growing

getting bigger, as the more expensive the amber, the more lucrative investment it is for them. According to local media, the whole value of the amber export in Poland is about 300 million U.S. dollars a year. The price of 1 kg of amber suitable to jewelry use is about 6,000 zloty. Nowadays, due to a growing need for amber, the Polish government is considering a possibility of exploring and extracting the underground amber located mostly in Pomerania region.

Port of Gdańsk Authority starts privatization of Port of Gdańsk Port of Gdańsk Authority SA, one of the most rapidly developing ports in the Baltic Sea, has commenced the privatization of Port of Gdańsk Cargo Logistics SA (Port Gdański Eksploatacja SA), its largest multipurpose cargo handling operator, the company said. The Port of Gdańsk is Poland’s largest port designated by the European Union as the core port of the TEN-T Baltic Adriatic Corridor no.1. With 30.3 million tonnes of cargo handled in 2013, being a record figure in a 1000-year long history of the Port of Gdańsk, it ranked seventh in the Baltic Sea and second in terms of the number of containers handled. Another stage of the Port of Gdańsk’s intense development is a decision to sell a block of shares in Port of Gdańsk Cargo Logistics SA, a stevedoring company that provides cargo handling and storage services for goods delivered by sea, road and rail, to one of the largest seaports of Central and Eastern Europe. Port of Gdańsk Cargo Logistics SA is a port operator focused mainly on handling general cargo, including containerized and bulk cargo, that pursues its business on over 90 ha of the Port of Gdańsk’s attractively located plots. The purchase of a block of almost 100% of shares in Port of Gdańsk Cargo Logistics SA (99.1% of shares belong to Port of Gdańsk Authority SA and the outstanding 0.09% is subject to compulsory buyout) is currently one of the most interesting investment options on the maritime market in Central and Eastern Europe. Gdańsk as the largest port located in Poland, is a commercial centre that in 2013 handled in its terminals and quays the cargo worth of roughly EUR 40 billion, which accounts for 50% of Poland’s (the sixth largest European market) income. The deadline for sending bids expires n on 12 May 2014.

April 2014

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Szczecin Big new distribution investment in Szczecin Prologis announced that it has signed two build-to-suit agreements totaling 22,600 sq. m. in Europe. According to the company, the agreements include a 11,400 sq. m. facility at The Bridge in Dartford, U.K., a 264-acre joint venture development between Prologis and the Dartford Borough Council; and a 11,200 sq. m. logistics facility at Prologis Park Szczecin with Prime Cargo which will serve as a distribution center for Prime Cargo’s customers in Scandinavia. Commenting on the agreements, Philip Dunne, President, Prologis Europe, stated, “The limited supply of high-quality logistics facilities is driving build-to-suit requirements in Europe. Our well-located land bank enables us to continue meeting our customers’ immediate distribution needs in a variety of markets across the region.”

LNG terminal in Świnoujście to open in early 2015 Poland has already built the first foundations of its energy security, said Minister of State Treasury Wlodzimierz Karpinski at the 2nd Polish Energy Summit conference in Gdańsk. “The Polish energy industry has changed beyond recognition in recent years,” Karpinski said. “1,700 megawatts in modern conventional and alternative generating capacity has been added since 2007. Installations with a combined capacity of 5,000 megawatts are now under construction, representing ca. 13 pct of national energy needs,” he added.

2014 April

Cities News Capital investments in generating capacity will total 10 billion U.S. dollars and in broadly understood infrastructure and other aspects of energy industry will reach over 20 billion U.S. dollars by 2020, Karpinski said, pointing out that a large part of those projects would be implemented by state treasury companies. A total of 1,200 km of gas pipelines were built in Poland in the last 7 years and this represented “a leap forward since only 90 km of pipelines were built in the years 2004-2007,” the minister noted. “Poland will have a gas storage potential of 2.2 bln cubic meters in 2014, 1 billion more than 7 years ago. “ The LNG terminal in Swinoujscie will start receiving liquid gas shipments next year and “it is an absolutely crucial project for Poland’s energy security because it will secure one third of national consumption,” Karpinski went on. Deputy Minister of State Treasury Zdzislaw Gawlik said at the same conference that the state must have instruments enabling it to “safeguard energy security and influence” state firms to that end. Karpinski explained that “we do not advocate nationalization” (of, for instance, energy companies) “and will continue the process of privatizing state assets, which is slowly nearing completion. The degree of the state’s presence in the economy should be minimal but also indispensable and reasonable, especially in view of recent developments in Europe and the world.” The conference in Gdańsk is devoted to directions of Poland’s energy policy and security of energy supplies. It is attended by over 400 people, including CEOs and top managers of major energy companies and financial institutions.

Kraków Leach & Lang sells trio of plots in Kraków Leach & Lang Property Consultants recently advised one of Poland’s largest residential developers on the acquisition of a piece of land of approximately 0.8ha in size, located on the corner of Masarska and Rzeznicza streets, from Spanish bank, Bankia on which it is expected 200 apartments will be built. They also advised a private Irish client on the sale of an approx 1.4ha riverside plot in Zablocie allowing for 13,000 sq m of residential development to local Kraków-based developer, Newberg. Finally they are in the process of advising a foreign developer on the acquisition of a 1ha residential plot on ul. Cystersow for a 300 apartment development. The sum value of the plots amounts to almost 40 million PLN.

Kraków Mayor calls for referendum on 2022 Winter Olympics The Mayor of Kraków, Jacek Majchrowski has revealed he wants to hold a referendum to gain the consent of locals for the city’s bid to host the 2022 Winter Olympic and Paralympic Games. Despite previously saying there was little need for a referendum Majchrowski said that the consent of locals was important but declared he is confident the city’s bid for the 2022 Winter Games will be backed by the people of Kraków should a referendum be held in the coming months. “Personally, I’m convinced that the organisation of the Winter Olympics would be an important step for the development of our city and region,” said Majchrowski. “Surveys carried out a few months ago showed that there is support for the idea hosting the 2022 Winter Games. But in such an important matter, that’s not enough, which is why I am calling on the City Council to hold a referendum.” Despite recent polls suggesting there is strong support for Kraków’s bid with the city’s bid team claiming that 87 per cent of Polish people back the idea and that under Polish law a referendum is not obliged to be held, it may be seen by many observers as an unnecessary risk by Majchrowski. In November last year, Munich, which was considered by many as the initial outstanding candidate, dropped out of the race for 2022 after local citizens voted against it in a referendum. Swedish capital Stockholm abandoned its bid for the 2022 Winter Games in

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Cities News January following a decision by the ruling Moderate party not to back the campaign because of the potential cost of building new facilities. However, a referendum can be called for by the local authorities in Kraków or at the request of citizens who can demonstrate they have the support of at least 10 per cent of voters. There must be a minimum turnout of 30 per cent of voters for a referendum to be valid. Although the bid is billed as Kraków 2022, alpine skiing events would take place in Zakopane and across the border in Jasna, Slovakia, both of which are located in the Tatra Mountains. Kraków Deputy Mayor, Magdalena Sroka, part of the bid team that presented the city’s Applicant File to International Olympic Committee President Thomas Bach in Lausanne in March, was speaking at the same press conference as Majchrowski and revealed the estimated entire cost of preparing for and hosting the Games could reach 6 billion zloty.

She also forecast that 1.1 billion zloty would have to be invested in sport facilities. But Majchrowski insisted that funding for the Games would be provided by the IOC, the Polish State Treasury and regional authorities on both sides of the Tatra Mountains stating that “this is not Kraków acting on its own” while he also acknowledged the city will be “counting on sponsors”. A period of consultation is now set to take place between Kraków officials and national governing bodies in Poland while no referendum would be held until it is confirmed by the IOC in early July whether Kraków has been chosen to go through to the next phase of the bidding process. Four other cities are bidding to host the 2022 Winter Olympic and Paralympic Games, Almaty, Beijing, Lviv and Oslo. n

Wrocław Wrocław lands 6,000 new workplaces As many as 15 companies decided to invest in the Wrocław agglomeration in 2013. “Last year was quite unique. Compared to previous years, we witnessed more pronounced interest of production companies, visible in the number of new workplaces in this sector. The industry of modern services has also developed dynamically: new projects appeared and some companies already present on this market decided to reinvest. What is important, Wrocław was more welcome as location for service companies. In the Tholons report, out of 100 cities all over the world, Wrocław experienced the biggest leap by 10 places compared to previous years,” said Ewa Kaucz, the VicePresident of the ARAW Management Board. In 2013, ARAW managed 25 investment projects in total. By the end of the year they managed to achieve the decision of 15 companies (5 production companies and 10 services companies) to locate or to develop their operations on the territory of the Wrocław agglomeration. By comparison, the Polish Information and Foreign Investment Agency (PAIIZ), completed 53 investment projects last year. Some enterprises with which ARAW cooperated still remain at the decision-making stage. Amazon unquestionably leads the group of investors in the production-logistics domain. The American internet sale giant will construct two conference-distribution centres in Bielany Wrocławskie, offering 4000 permanent workplaces with additional 6000 temporary workplaces. Moreover, Swiss Nestlé will construct the animal feed factory with the distribution centre, the Irish ID Technology company will invest in self-adhesive labels plant and the American Wabco will expand its operations in Wrocław with a new production plant. The business services industry will gain new centres of the following companies: Parker Hannifin (finance and accountancy), Redknee (IT), Synexus (finance and IT) and Viessmann (R&D). Moreover, the following companies decided to reinvest and expand their operations: BNY Mellon and Nokia Solutions. “The USA dominates in terms of countries from which investments come to the city. The remaining companies represent western Europe, mainly Great Britain and Germany”, according to Kaucz.

Wrocław steps up plans for World Games 2017 As part of its plans for The World Games 2017, Wrocław city councillors decided to establish a special purpose vehicle which objective would be to prepare, carry out, supervise and settle accounts of The World Games 2017. As explained before the vote by the Vice-President

of Wrocław, Wojciech Adamski, the information about the creation of the entity responsible for organising the event was already in the agreement between the Municipality of Wrocław and the International World Games Association (IWGA — the organisation granting the right to host the World Games). “The establishment of the company means the creation of the Organising Committee of The World Games 2017. The company will exist until 31 March 2018, and it will be responsible for investments, infrastructure, preparation and realisation of the event, as well as raising funds. It will also take care of municipality’s image, by i.e. the development of sports and recreational grounds and sports education,” said the vice-president. 3 million zlotys is assigned in this year’s city budget for the organisation of The World Games. The money will be transferred as share capital to the company which will carry out the tasks assigned by the municipality and will not take out any loans. The World Games 2017 is the largest sports event to be held in Poland. Initial estimates show that more than 500,000 guests, 4,000 athletes and at least a few dozens of TV crews showing live coverage of the competitors’ struggle will visit n Wrocław during the games.

April 2014

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Łódź Orange Poland, Integrated Solutions to build Łódź network The Orange Poland and Integrated Solutions consortium has won the tender to construct a fibre-optic backbone distribution network in the Łódź Voivodeship, reports Media2.pl. This is the second stage of the construction of the Łódź Regional Telecommunications Network (LRST). Earlier, the consortium won the tender for the first stage of the LRST. The second stage of the project covers infrastructure construction in the southern part of the voivodeship, where there are many municipalities without access to fast internet. The network connects thirteen county health facilities, among others in Wieruszow, Wielun, Pajeczno, Radomsko and Opoczno. The backbone nodes and distribution nodes will be deployed in the counties, to which local internet service providers will be able connect and provide services to residents. The network will also be used for the purposes of telemedicine and e-health. The first stage of LRST includes the construction of a backbone network connecting nodes in eight cities. The project is co-financed by the European Regional Development Fund and by the Regional Operational Programme of the Łódź Voivodeship for the period 2007 – 2013.

Rwanda and Łódź seek to boost business Poland is seeking ways to boost trade cooperation with Rwanda, due to the country’s favorable business climate. The move is aimed at improving bilateral

2014 April

Cities News cooperation in trade and investment between two countries. Over 30 Polish investors from Łódź held discussions in Poland on March 25, 2014 with Rwanda’s ambassador to Germany Christina Nkurikiyinka to have a gauge of the available investment opportunities in Rwanda. The officials discussed possibilities for both countries to be in business partnership in general, and relationships between both Kigali and Łódźkie region. Both the parties emphasized on the need to expand cooperation to maintain the momentum of development. Nkurikiyinka provided all the necessary details on investment conditions, investments opportunities and the advantages of considering Rwanda as a partner in business. Last year, Rwanda and Poland pledged continued collaboration in sectors like education energy, SMEs and agro-business. Rwanda has set up reforms to make the country business friendly including reducing the period of registration procedures, introducing online registration, easing tax paying and 24 hours to get an investment certificate among others. Rwanda was however ranked the second best place to do business in Africa according to the World Bank’s Doing Business 2014 report. Poland commends the strides made by Rwanda in fostering quality education. The development also encourages Polish government to increase its investment and partnerships in education projects in Rwanda. So far, the partnership is more evident in MBA and PHD scholarships offered by Poland to Rwandan students, as well as establishment of Poland supported school of visually impaired children situated in Kibeho, Nyaruguru district located in the n Southern province.

Katowice Katowice hosts gaming Frag Reel Friday: EMS One Katowice It’s been a huge couple of weeks in gaming, whether you’re a fan of first-person shooters, hardcore competition or just hardcore gaming in general. Dark Souls 2 is finally here, ready to service masochists the world over, while Titanfall aims to satisfy Call of Duty and first-person shooter addicts with its blend of speed, first-person parkour and, of course, mechs. EMS One in Katowice, meanwhile, is one of a regular series of European events hosted by ESL, the league responsible for competitions such as the Intel Extreme Masters tournaments held in Europe, China and South-East Asia. EMS One ties into the yearly Intel Extreme Masters World Championship and will showcase some of the world’s best League of Legends, Counter-Strike: Global Offensive, Hearthstone and Starcraft 2 with some staggering prize pools. While CS:GO doesn’t feature on the main page of the EMS One website, it’s the only event to feature an Australian team this time around - and the US$250,000 prize pool isn’t a bad attraction for a side tournament. There’s been no shortage of gamers happy to show off their own strategies and methods of progressing through the games.

Katowice football club to accept Bitcoins In a bid to boost its popularity and endorse the cryptocurrency in the process, Polish soccer club GKS Katowice has announced plans to enable bitcoin payments for tickets and club-related merchandise. The club’s supporters can now make donations to their favourite side in the digital currency, GKS Katowice said in a statement. “We are open to new technologies. We want to be innovative and show our fans that we have great ambitions,” said Wojciech Cygan, chief executive of GKS Katowice. Under the plan, the fans will be able to pay in the digital currency through customized bitcoin wallets. Maciej Ziółkowski, an expert from local news site Satoshi.pl, was quoted in the statement saying that GKS Katowice is the first professional soccer club in the world to endorse the digital currency. “In Poland, there are now sixty outlets which accept payments in bitcoin. This area is rapidly developing.”

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Cities News Ziółkowski pointed to the experience of US basketball team Sacramento Kings which in January became the first NBA team to accept bitcoin for products sold online and at its home stadium. According to Marcin Ćwikła, the club’s press officer, the next step for GKS Katowice will be to sell match tickets and club-related merchandise such as squad jerseys and gadgets with the use of cryptocurrency payments. Set up in 1964 and based in Katowice, in Poland’s Silesia region, GKS Katowice has a significant following in the country’s south-west. The club is currently celebrating the 50th anniversary of its establishment. Some of the major achievements of GKS Katowice include three Cups of Poland in 1986, 1991 and 1993, as well as two Super Cups of Poland in 1991 and 1995.

initiatives designed to bolster the club’s media presence and lure new supporters. After the first half of the 2013/2014 season, GKS Katowice is currently ranked third out of the 18 clubs which play in Poland’s I Liga. This means that the club still has a chance of being promoted to the Ekstraklasa, which will accept the top two squads of the I Liga to its ranks in the next season. GKS Katowice’s last season in the top tier of Poland’s professional soccer league ended in 2005. The supporters of the Katowice-based side can now show appreciation of their club’s efforts to return to the Ekstraklasa with donations made with the cryptocurrency. GKS Katowice’s stadium has a seating capacity of more than 10,000. The city of

Katowice is its majority shareholder, with a 52.78% stake in the Polish club.

Bitcoin in Poland Despite the lack of official recognition of bitcoin by the Polish government, Poles trade digital currencies on local platforms. The question of bitcoin’s legal status was addressed in a policy document signed by the country’s Deputy Minister of Finance Wojciech Kowalczyk and released in July 2013, as earlier reported. Under the current regulatory framework, all transactions made in bitcoins are to be considered as a result of two parties agreeing contractually to use the digital currency in settling their dealings, according to the n document.

Marketing strategy After its rise to prominence in the early 1990s, the soccer club experienced a downfall which resulted in its relegation from the Ekstraklasa to the I Liga, the second tier of Poland’s professional soccer league. Despite this, the club has remained highly popular both in Katowice and a number of neighbouring municipalities, and maintains a budget which matches those of some of the clubs which compete in the country’s top soccer league. The latest move to introduce digital currency donations is one of a wide range of

Lublin Lublin lands large BPO investment, bringing 250 jobs

US-based Convergys announced in late March that it will hire German-speaking staff in Lublin to service its German telecom client Telefonica. The service centre will be a customer service centre for subscribers of their telecoms services, such as voice and Internet. Collections will also be handled from Lublin. Convergys employees will move into a new Class A office building Nord Office Park. Convergys will be hiring only Germanspeaking employees, with a level B2 or C1 grade, said Cormac Twomey, managing director of Convergys. The first group of 50 workers will start in May, with plans to hire throughout the year, targeting 250 employees by December 2014. At the beginning of their employment, employees will be trained in customer service and n German cultural differences.

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Belgium Belgian Business Mixer at hotel Bristol Guests gathered at the regularly-scheduled Belgian Business Mixer in March, with catering provided by the Bristol, including Belgian beers and mussels.

Chambers of Commerce News Upcoming Events Polish-Belgian Business Forum on Investments at Ministry of Economy 9.04.2014. The Polish-Belgian Business Forum, with the participation of Deputy Prime Minister and Minister of Economy Janusz Piechocinski, will give the opportunity to entrepreneurs and officials from both countries to establish contacts as well as to exchange views and experiences

about investing in Belgium and Poland. Registration online at the website of Ministry of Economy. New members in 2014 of BBC: Orbis S.A Hotel Sofitel Victoria, Bekaert Poland Sp. z o. o., C-Wind Polska Sp. z o. o., Francuski Instytut Zarzadzania, Hanza SC, Fulcrum Partners BVBA, and Willemen Polska.

2014 April

Chambers of Commerce News

Canada CAE to provide flight simulator to the Polish air force CAE Inc. has won a series of contracts in the United States, Poland, Germany and Malaysia worth more than $140 million in total. The Montreal-based company says one of the contracts is to provide four simulators for the Boeing P-8A longrange patrol jet used by the U.S. navy for warfare, reconnaissance, intelligence and surveillance. CAE will also provide an full flight simulator to the Polish air force. The SW-4 simulator will be used to train pilots to fly a light utility helicopter developed by PZL-Swidnik, an AgustaWestland company.

Ireland St. Patricks Day The Irish business community celebrated its annual St. Patricks Day festival, with a

dinner dance and gala at Warsaw’s Hilton hotel, and more than 400 guests.

Japan Energy investment from Japan On 19th of March Japan External Trade Organization JETRO, Warsaw office in cooperation with JETRO’s London office organized a seminar on Europe and Poland’s energy policy and projects. Seminar was held at JETRO London premises and was attended by over 40 participants from Japanese companies representing such industries such as energy, electronics, trading etc. During the seminar JETRO London representatives, Mr. Yuki Sadamitsu and Yohei Saito presented EU’s energy policy and energy policies and industries in European countries respectively. Situation in Poland was explained by JETRO Warsaw Director General, Mr. Naofumi Makino, while Mr. André Schuurman of KPMG Poland explained about current and planned projects in Poland.

www.bizpoland.pl According to participants of the event, it was an opportunity to learn about the energy policy of Poland and the region, as well outlines of specific projects. The sector is of strong interest to Japanese companies. Other fields of interest in Poland and Central-Eastern Europe mentioned by participants were shale gas, nuclear power, waste management, as well as water facilities, infrastructure and railways. Japan External Trade Organization JETRO Vienna Office in cooperation with JETRO Offices in the CEE, including JETRO Warsaw, organized a seminar on business opportunities in Central Eastern Europe and Russia. The event was organized on 7th of March in Vienna and was attended by over 80 representatives of Japanese companies. During the seminar current situation and business opportunities in given country was presented by each JETRO office located in the CEE region and Russia. Poland was particularly praised as not only a good location for potential investment but also an attractive consumer market. Speakers included representatives of The Vienna Institute for International Economic Studies as well as n Raiffeisen bank.

April 2014

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Chambers of Commerce News

Netherlands Speed Business Meeting in Warsaw 15.04.2014. Location: Winkolekcja Winebar, ul. Olkuska 7. NetherlandsPolish Chamber of Commerce and Belgian Business Chamber are pleased to invite you to a Speed Business Meeting, an outstanding formula that offers possibility to establish new business contacts and gain business opportunities in a friendly ambience of the Winkolekcja winebar. n

United States AmCham Agri & Food Summit in Warsaw AmCham, along with the US Embassy, organized the Agri & Food Summit on 18th March in Warsaw. The European Union and the USA are currently negotiating the terms of the Transatlantic Trade and Investment Partnership (TTIP). One of the most important areas of the agreement is the food and agriculture sector, struggling with nontariff barriers to trade that generate up to 60-80% of supplementary production costs. The discussion topics of the event included recent agricultural policies in Poland and in the US, as well as issues related to production and commercialization of agricultural products. The main purpose of the event was to share

Apartments

expertise on agriculture in both countries, and to look at new business opportunities across the Atlantic in the context of current TTIP negotiations. Among invited guests there were: Andrzej Dycha, Undersecretary of State at the Ministry of Economy, Krystyna Gurbiel, Undersecretary of State, Ministry of Agriculture and Rural Development, Don Norton, President of the Illinois Agricultural Leadership Foundation (IALF) and Michael T. Henney, Counselor of Agricultural Affairs Eastern Europe, US Embassy. With more than 60 participants, including high level officials from the Polish Ministry of Agriculture and Rural Development and representatives of the Illinois Agricultural Leadership Foundation, the intent of the event was to strengthen commitment to dialogue between the Polish government and American agricultural investors, said Dorota Dabrowski, AmCham Executive Director. The Partnership aims to facilitate the exchange of goods and services between the two economies on both sides of the Atlantic. Although the EU and the US are systematically liberalizing access to mutual markets, current regulations are significantly slowing down, and often even blocking, trade.

The process of relaxing regulations on both markets runs at different paces depending on the type of goods: regulations concerning consumer and industrial goods are changing faster than the ones related to agricultural products. The outcome of those efforts is that the level of customs burdens of the US and the EU is relatively low. The average level of MFN rates in 2011 equaled 5,3% for the EU and 3,5% for the USA. In view of low customs rates, what mostly impedes the US-EU trade level are nontariff barriers (including different positions on GMO, pesticides, and food safety). Subsequently, this is the area where the greatest benefits coming from the TTIP negotiations are to be expected, adds Dorota Dabrowski Director of AmCham. Poland will be a beneficiary of TTIP. Despite a certain progress in the economic relations in the last couple of years, as well as the stable growth of Polish export to the US (in the years 2010-2012 it grew from 2,8 to 3,6 bn USD), bilateral relations are still less extensive than they could potentially be. According to AmCham report, the highest level of Polish export can be seen in the aircraft industry, whereas the level of domestic food and agriculture products export is considerably lower. The agreement will boost European exports to the US by as much as 28%, which translates to 187 bn EUR worth of additional export of European, that means also Polish, goods and services.

Upcoming Events: 9th Regional Tax Conference, by American Chambers of Commerce in Central and Eastern Europe. 9th of April 2014; Hotel Westin. â&#x20AC;&#x153;Ten years in the European Union: Impact on taxation in Central and n Eastern Europeanâ&#x20AC;?.

Luxury Brands Spring 2014

in Poland

Profiles of Polish Brands

Cars Fashion Top Hotels and SPAs

Advisory Articles

Yachts Jewellery Perfumes

Tests of Products

Interior Design

Published Bianually 31

2014 April

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Business Calendar April

11 April 2014

28 May 2014 German Wine Festival Warsaw

VII Banking Forum Warsaw

Wrocław Agglomeration Real Estate Forum www.bpcc.org.pl Wrocław

4–6 April 2014

15-16 April

Warsaw Fashion Weekend Warsaw

5 April 2014

Europower http://konferencjaeuropower.pl Organize: MMC polska Location: Warsaw, Hotel Westin

LuxBrand Expo Warsaw

24 April 2014

8 April 2014

SPCC 10th Anniversary in Kraków Kraków

2–3 April 2014

Conference on investment sites The First National Conference on Investment Sites in Poland, under the patronage of PAIiIZ, will be held on 8 April at the Business Centre Club in Warsaw. Warsaw III Forum of Meat Industry Warsaw

May 6 May 2014 Aviation Valley Expo Day Rzeszów

7–9 May 2014 European Economic Congress Katowice

9 April 2014 Polish-Belgian Business Forum on Investments Warsaw Business Forum Poland - Latvia Warsaw

9–11 April 2014

9–10 May 2014 VI Women Congress Warsaw

22–24 May 2014 5th ABSL Conference Poznań

World Food 2014 Warsaw

27 May 2014

10 April 2014 SPCC 10th Anniversary in Tricity Sopot

10–11 April 2014 European Executive Forum 2014 Executive-club.com.pl Warsaw, Hotel Sheraton

Zhejiang - Poland Matchmaking Forum www.paiz.gov.pl Warsaw

27–28 May 2014

29 May 2014 CEE Energy Awards 2014 www.CeeEnergyAwards.com Warsaw Made in Italy Fair Warsaw AmCham Business Mixer Poznań

29 - 30 May 2014 Economic Forum Poland - Tunisia Poznań

June 11 June Poland Specialty Foods and Beverages Expo The Poland Specialty Foods and Beverages Expo (PFEX) aims to connect foreign food producers with more than 100 Polish food buyers: large and niche retailers, importers, distributors, and FnB managers from major hotels. Food and wine producers from more than 20 countries have signed up to exhibit. The Polish market for international food producers is developing quickly as an export destination, as Polish consumers purchasing power continues to grow. Organized by media group BiznesPolska, which organizes multiple niche events in Poland as well as publisher of the annual directory Food Exports Poland, the Expo will be accompanied by an evening networking business mixer (closed - only for food producers and buyers) on 11 June to further build contacts between Polandbased buyers and foreign food and beverages producers.

PWEA 2014 Wind Conference and Exhibition Serock (Warsaw) www.psew.pl

PolandSpecialtyFoodsExpo Connecting international food producers w i t h b u y e r s in Poland

1 1 J u n e 2 0 1 4 , R o ya l C a s t l e , A r k a d y K u b i c k i e g o , Wa r s a w

www.PFEX.pl April 2014

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Events

Poland & CEE Retail Summit 2014 brings in 700 participants The largest and most important meeting of the retail sector and FMCG sector in Poland, which this year brought together more visitors than a year ago - more than 700 participants - has traditionally been a platform to exchange experiences and analyze trends and challenges facing the Polish trade and FMCG manufacturers. Targeting retailers and related companies, the Congress addressed a tighter economic climate, uncertainty about the future and the problem of unemployment which affects the purchasing power of consumers. These factors are putting pressure on general retailers and food retailers, since the consumer is demanding lower costs. The growing challenges facing the FMCG market meant that this year guests and speakers focused especially on challenges of the next few years. Issues that are most important: flexibility and quick response to market changes, careful observation of the needs of increasingly educated and demanding consumers, further development of

“private-label” brands that build loyalty, and supply chain integration. Constantly present in this year’s discussions was the issue of technological change, as mobile technology allows greater choice for the consumer. At the Congress’s evening Gala, “Retailers of the year” were awarded. Prizes were awarded to the best retail chains in 7 categories based on the results

of a survey conducted by research firm Nielsen - this year covering more than 250 representatives of FMCG producers - and the only Awards event in Poland awarded by the suppliers of FMCG retail and wholesale networks. Awards Winners included: Hypermarket – Auchan, represented by Dorota Patejko, Director of Communications at Auchan Poland. Supermarket - Intermarché (second consecutive year). The award was received by Marek Feruga, Member of the Board of ITM Enterprises. Discount – Netto, picked up Daniel Grabka, Director of Purchasing at Netto. Convenience and Regional Trade Networks - Zabka (second year in a row) picked up by Roman Roszyk, Head of Commercial at Zabka Poland. Wholesalers and Distributors - Selgros (for the fourth time in a row). The award was received by Michał Gidaszewski , Regional Sales Director Selgros Cash & n Carry.

CEE Shared Services and Outsourcing Awards Gala

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5th February 2015, Intercontinental Hotel, Warsaw

Ser vices

www.CEEOutsourcingAwards.com 2014 April

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Events

Łódz’s First Grand Speed Business Mixer The first Łódź Grand Business Mixer was held on 6 March in the newly-refurbished Grohman Factory. The meeting, organised by construction company MCKB, logistics group Raben and the Łódź Special Economic Zone, with media support from BiznesPolska.pl and BizPoland Magazine, was an opportunity to establish news business contacts. The First Grand Speed Business Mixer was based around a series of face-to-face meetings that allowed each participant to meet new business partners: contractors, suppliers and clients. Establishing new contacts between entrepreneurs and advisory experts continued during a networking mixer and banquet later that evening. “Łódź is a city that combines the best business traditions with modernity, it’s a city we can see flourishing at every turn,” said Piotr Grabowicz, President of the Board of MCKB. “It’s a place of a great, inexhaustible potential and a

place that allows companies to co-operate successfully and realise far-sighted initiatives.” Over 300 guests took part in the event. These included representatives of municipal and voivodship authorities, banks, investment funds, the ICT sector, e-commerce, logistics, BPO, construction, along with international manufacturers and developers. “We met with much interest from representatives of various sectors, and the response from our guests was very positive,” – says Tomasz Sadzyński, president of the Łódź Special Economic Zone. “The Grand Speed Business Mixer brings together creative, enterprising people, passionate about their work, and willing to do something constructive for Łódź.” Partners of the First Grand Speed Business Mixer included also the American Chamber of Commerce in Poland, the British Polish Chamber

of Commerce, the French Chamber of Industry and Commerce, Indo - Polish Chamber of Commerce & Industry, the Japan External Trade Organization – JETRO, the Netherlands-Polish Chamber of Commerce, the Polish Canadian Chamber of Economy, the Polish-German Chamber of Industry and Commerce, the Polish-Turkish Chamber of Economy and the Scandinavian-Polish, the Italian Chamber of Commerce and Industry as well as Alliance Française Łódź and the Łódź Chapter of the Business Centre Club. Sponsors of the First Grand Speed Business Mixer were KPMG; Athlon Car Lease; Bank BPS; foreign language school, British Centre; heating network operator Dalkia; brokerage firm Donoria; the Association of Commerce, Industry and Services of the Mazowieckie Voivodship; Fortak & Karasinski Legal Advisors; Supremis; and a producer of sanitary inn stallations – Vesbo.

April 2014

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Events

Collegiumâ&#x20AC;&#x2122;s International Career Day The biggest companies recruiting Englishspeaking specialist s presented their job-offers during the first such international career fair, organized by Collegium Civitas. Language, knowledge and involvement were key issues on the agenda. During International Career Day, the representatives of companies answered questions concerning the recruitment process, experts trained participants to present themselves well during a job-interview, and career consultants advised students on finding their best career path. During the opening ceremony the President of Collegium Civitas Prof. Jadwiga Koralewicz welcomed the guests, together with Tony Housh from the American Chamber of Commerce, Cristiano Pinzauti from the Italian Chamber of Commerce, and Abdulcadir Gabeire Farah from Foundation for Somalia. The organizers of the event were the American Chamber of Commerce, Italian Chamber of Commerce, Foundation for Somalia, International Students Club, Collegium Civitas â&#x20AC;&#x201C; and BiznesPolska. pl and BizPoland Magazine were Media n Patrons.

2014 April

Events

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Wine Tastings target Polish consumers With the annual ProWein wine expo in late March, several wine tastings in Warsaw took part just ahead of the Dusseldorf event. Chilean wineries hosted professional wine buyers at the hotel Sheraton, and featured more than 40 Chilean wine producers. Chilean wines have carved out a strong presence in Poland, and producers hope to expand their market-share in Poland in the coming years. Likewise, Californian wines were featured at a special closed event in late March, with both large and niche wine producers present. While many producers already have distribution and sales in Poland, others were in Warsaw seeking out new wine importers, retailers and disn tributors.

April 2014

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