BizPoland Magazine - March 2014

March 2014 vol. 7 no. 3(41) Price: 20 zł

Kraków’s global aspirations

Advisory:

City News:

Four internal Australian firm scams that could drills for coal near bleed you to death Lublin

Politics: Dusk for Ukraine, dawn for 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

*

Table of Contents March 2014 vol. 7 no. 3(41)

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

Krakow’s global aspirations

Advisory 8

Doom and gloom gives way to … flat taxes

9

Dusk for Ukraine, dawn for Poland?

10

Four internal scams that could bleed you to death

11

Equties News

(11) Eurocash wholesaler posts PLN 74.8 mln Q4 net profit, far below expectations (12) GTC developer back in the development game, with 200 million pln debt placement (13) WSE-operator GPW posts PLN 28.6 mln. net profit in Q4 vs PLN 24.1 mln expected (14) P4 mobile operator records PLN 707 mln EBITDA in 2013 on PLN 3.72 bln revenues (15) MCI buys 20% of O2 portal from Innova Capital

17

FDI News

(17) Poland’s Largest Solar Park; Stora Enso plans to invest Euro 28 million in Murow sawmill (18) ArcelorMittal opens Polish rail production facility (19) Domino’s targets pizza-starved Poles (20) Indian companies looking at Poland (21) Azerbaijanis in Poland (22) New investments in Krakow Zone; New investors in Lodz SEZ

23

City News

(23) Kraków; Łódź (24) Szczecin (25) Trójmiasto (26) Poznań; Wrocław (27) Katowice (28) Lublin

29

Chambers of Commerce News

(29) Spain; Netherlands; Switzerland (30) Belgium; India’ Portugal (31) United Kingdom; Scandinavia (32) United States (34) Germany; Italy

35 Events 35

BCC – Grand Gala of Polish Business Leaders

36

Foundation for Corporate Responsibility celebrates annual dinner dance

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

37

CEE Retail Real Estate Awards

38

Canada’s Winter Reception

39

Gala of the French Chamber of Commerce

www.bizpoland.pl

Cover Story

Krakow’s global aspirations The city didn’t plan it this way. No major initiatives to support the industry. No significant coordination of policy. And certainly no grand vision.

And maybe that’s the reason it happened.

Last month it became official: Krakow is the number one destination in Europe for business services centres, finally displacing dour Dublin in Tholon’s annual global rankings.

4

Krakow’s architectural splendor and rich educational traditions have been key factors in driving massive foreign investment in the city over the last 5 years, from the likes of global giants State Street, Google and PhilipMorris.

Krakow’s continued ascent – it was not in the top 30 just 5 years ago – has got the city’s casually-coordinated business community thinking: how good could it be if we actually worked together to coordinate development, policy and infrastructure?

At the behest of Andrew Hallam, who founded ASPIRE, the association that focuses on Krakow’s shared services sector, issues of infrastructure, planning and policy were centre-stage at the recent conference Made In Kraków in late February, which brought together top executives from Krakow’s biggest sector (shared services) with key city officials including the Mayor Jacek Majchrowski, top tourism and infrastructure chiefs, and the city’s top real estate developers.

The idea behind the conference reflects both the positive potential of the city – it recently surpassed Lodz as Poland’s second-largest city – as well as the palpable feeling that it could all go awry if the city and its business community don’t start cooperating closely to build the city’s infrastructure.

The city is hard at work laying the foundations for the next stage of growth – balanced growth that will not compromise Krakow’s charm.

During the conference, different people presented their visions for the development of Krakow, in areas such as transportation, airport expansion plans, office developments, conference centres and concert halls. Participants included representation from Jagiellonian University, the University of Economics , University of Education, University of Science and Technology and the Technical University of Krakow, all of whom are challenged to keep up with the existing trends in Krakow and provide relevant educational skills to feed these fast-growing industries.

Here below we present details of the multiple initiatives in Krakow that will cement the city’s position on the global map in several key industries and lay the foundations for the next generation of balanced growth:

ICE Conference Centre - to be opened in fall 2014 Krakow is stealing a step on Warsaw with its major investment in the International Conference Exhibition Centre (ICE). While the capital city has dithered and dallyed and debated the need for such a facility, Krakow’s ICE will open in October, firmly putting Krakow on the map for global organizers of large-scale conferences and events.

The ICE will be able to accommodate 3200 guests, with a complex of conference halls with regulated moveable walls, a glazed three-floor foyer with a view of the Wawel Castle, and a multifunctional exhibition hall. With over 36.000 m² of conference space, the Auditorium alone can host 2000 people, and is designed with worldclass acoustics for concerts and musical events – and is capable of hosting conferences for between 1,800 and 2,100 people.

Additionally, plans include an auditorium hall for 600 people, a 1,000 m2 multifunctional space, and 32 meeting rooms.

The building has been designed in such a way as to host various types of congresses, conferences, concerts, theatrical shows, exhibitions and other cultural and social events. The high standard of the building will place it among the most exclusive congress centres in Europe.

Total cost will amount to PLN 357 million.

Of special note is the Theatre Hall, which has been designed with folding seats which allow the floor area to be increased

when being used for banquets or exhibitions. Travelling from the airport takes about 20 minutes, and from the main railway station, it takes barely 15 minutes to get to ICE. “Malopolska is consistently building its image as a leader in the international meetings industry. To support the ICE, the Krakow Film Commission has prepared an advertising spot promoting the most interesting places in Malopolska. Thanks to a coordinated promotional campaign, all of us - ICE Kraków Congress Centre, the Krakow Convention Bureau, and the Malopolska Region – will benefit”, said Dorota Pierzchalska of the ICE. The ICE Kraków Congress Centre project was chosen in an international architectural competition in 2007. The project was created by the Ingarden & Ewý Architekci firm from Krakow and Arata Isozaki & Associates from Tokyo. The project received an award for its spectacular form, gently melding with the bank of the Vistula River. Its facade is constructed with the use of glass and titanium-zinc sheets.

March 2014

www.bizpoland.pl

Moreover, the choice of stone tiles, such as granite, lime and sandstone, is a reference to the typical materials used throughout the architectural history of Wawel Hill.

The Chief Architect of the City of Krakow – Tomasz Bobrowski: “The role of the Chief Architect in a city like Krakow is a huge challenge and responsibility. On the one hand, there is the historic fabric of the Old Town, successfully protected from cultural changes, and on the other there is the obligation to make the current constructions worthy of our city. We have almost no modern, worldclass architectural facilities. However, this year we will witness the opening of the beautiful Congress Centre and the sports and entertainment arena.”

“Krzysztof Penderecki visited the construction site of the Congress Centre near the Grunwaldzkie roundabout. He had been invited to visit the premises of the vigorously constructed structure by the designers from the Ingarden&Ewy Architekci company. However, the composer also revealed that it was his professional

2014 March

Cover Story

curiosity that had drawn him to the construction site as well. After all, the modern ICE Kraków Centre will become home to the largest concert hall in the capital of Malopolska. Today, the stately facility being erected opposite Wawel is the flagship city project. “You cannot approach this structure like you would a stadium, it is a very complex and complicated design.

Each of the three halls is different. The main one is the concert hall, the other two serve artistic and theatrical, as well as conference and congress purposes,” explains Jacek Ewy, its co-designer.

While the Congress Centre still encounters some problems related to the scheduling of a sufficient number of events in order to fund the facility, interest in the facility is high. The first parties eager to book dates at the then non-existent facility turned up already at the construction agreement finalization stage. Today, negotiations are being conducted with regard to events in 2017. The entertainment arena and the ICE Kraków fulfil Krakow’s needs for large facilities.

“Without this facility it would be hard to imagine the development of culture and tourism in Krakow,” said the Mayor Jacek Majchrowski when witnessing the progress of the construction.

Nowa Huta and Technology Park Krakow’s biggest experiment in its glorious socialist past was the massive industrial steelworks of Nowa Huta, set just on the edge of the city. Now an eyesore of epic proportions, the city plans a huge redevelopment of this post-industrial space – with the intention of converting it from an eyesore to an icon of the city’s rebirth. This is an area of approximately 230 hectares located along the railroad tracks.

“Talking about the re-development of Nowa Huta Przyslosci, it can not be seen in isolation from the development of Krakow”, said Elzbieta Koterba, vice president of Krakow. “Already we have begun the search for money that could be spent on land consolidation and the search for investors to develop the area”.

5

www.bizpoland.pl

Cover Story

6

The Nowa Huta Przyslosci (NHP) will be based largely on the lands of the former steelworks. The city plans to spend about 400 million pln on preparation of the land for investors, putting in place infrastructure such as roads and utilities.

Additionally, plans include a logistics centre, which will benefit from the extensive rail connections on this 230 hectare site.

The area also opens up the potential for large-scale office development and mixeduse developments.

Another development project is the science and technology park that stretches south from the railroad tracks, and emcompasses 128 hectares with room for nearly 420,000 sm of leasable space for offices and research centers. Preparation of the land will require investments of about 500 million pln. The third project, named Błonia 2.0, is a redevelopment requiring investment of 165 million pln on 37 hectares.

Another area of the “old” Nowa Huta, to be redeveloped is the “centre” which has been inscribed on the UNESCO World Heritage List. This area will be revitalized and redeveloped, with ample cultural facilities. Krakow authorities said they will invest 135 million pln for its reconstruction.

Hundreds of vacant homes While most of the Krakow authorities cast a positive light on development plans, no one had easy answers for the residential side of Nowa Huta, which is generally derelict.

While Koterba said the area could eventually provide 30000-40000 jobs, the issue of residential renewal seems to be unclear.

Issues such as access to the city centre and lack of retail remain unanswered.

Koterba also fielded questions about the financial costs to the city. While costs to Krakow are estimated at about 2 billion pln, as much as 80 percent of this may come from EU funds. “It will not be a huge money commitment from the city. Private investors may end up investing as much as 4 billion pln in mulitple projects, which will mean robust job creation”, said Koterba.

Shared Services – The Jewel in the Crown While the whispers are constant that the Shared Services sector is fickled and will move wherever costs are lowest, Hallam insisted that not a single Shared Service centre has ever left Krakow. And he aims to keep it that way. According to Hallam, more than 3000 new jobs will come to Krakow in

2014 in the advanced business services sector, bringing the total to 38,000.

“The business services and IT sectors in Poland are large, and Krakow is at the top of the league charts. This year, we surpassed Dublin and we are now number one in Europe”, said Hallam.

In the latest ranking of “Tholons Top 100 Outsourcing Destinations “, prepared every year by consulting firm Tholons, Krakow took 9th place, just behind the Asian giants in the field. While Krakow moved up, Dublin slipped down a slot.

The Mayor of Krakow Jacek Majchrowski stressed that companies in Krakow are specializing mainly in financial services such as accounting, but also advanced IT industry, high-tech, and newly-created centers of research and development.

“Krakow’s business services are increasingly offering more complex services, which also means higher wages for the employees. The city counts on continuation of this trend, and we plan to attract new global companies and help those already here grow further”, said Majchrowski.

Companies in Krakow provide services to 40 countries in 34 languages. “The advantages of Krakow are well-qualified

March 2014

www.bizpoland.pl

young people, fluent in multiple languages. And the development of supporting transport infrastructure, such as the airport and tram routes, are very important.

We also plan to use the new ICE convention center for various meetings”, said Magdalena Wlodek, director of Finance at PMI Service Center Europe.

Wojciech Poplawski, Director of Accenture’s BPO Services Centres in Poland, said that global confidence in Krakow and Poland is growing. “There is increasing confidence that large multinationals can safely set up centers of expertise to serve clients globally”, he said.

According to representatives of companies from the advanced business services, the challenge for the universities is to develop students’ analytical skills and intercultural communications. “The key is to build competencies that will allow our employees to go into higher management ranks, where technical specialization is not so important “, said Poplawski.

Airport traffic breaking new records – backed by EU funding Krakow’s Balice airport continues to break new records, with January continuing

2014 March

Cover Story

the record-breaking trend, with a total of 233,883 passengers, about 9% more than January 2013 – and the best January result in the history of the airport.

“Such good results are a result of increasing the number of connections offered by carriers and their locations, nearly 30,000 on scheduled flights”, said Jan Pamuła, president of MPL Kraków-Balice. Additionally, new flight connections from Alitalia, which was not in the winter season last year, and increased frequency from both airberlin and Aeroflot helped boost traffic.

The best performing carrier was airberlin, which transported 9500 people (an increase compared to January 2013 of 114 per cent). Aeroflot is also growing fast, with an increase of 86 per cent.

For 2014, the airport authorities expect to serve 3.7 million, up from 2013’s number of 3.64 million. However, optimists point out that the number could exceed 4 million if the January strong trend continues throughout the year.

Nearly 21 million pln of funds from the EU will boost the investment plans of the Krakow-Balice Airport, which recently signed an agreement within the framework of the EU’s Malopolska Regional

Operational Programme. The project has been recognized as one of the strategic investments for Malopolska. The total project value is over 44 million pln, so the EU contribution amounts to nearly half. It is the ninth project of the Krakow Airport co-funded from EU funds.

The project consists of three investment projects: the construction and reconstruction of internal transport system, construction of pedestrian walkways linking the passenger terminal to the multi-storey car park, and the construction of a railway station.

The entire project will be completed by early 2015. Then, in 2015, additional investment projects will start, as part of a big expansion of the airport, so that Krakow airport will eventually be able to handle 8 million passengers per year.

“Implementation of this project will provide fast and efficient connections within the airport and on access roads leading to the airport. The new internal communication system will be adapted to handle the growing number of passengers and ensure the integration of different modes of transport, including road and rail”, said the president of Krakow Airport Jan n Pamuła.

7

www.bizpoland.pl

Advisory

Doom and gloom gives way to … flat taxes The Polish tax and social security (ZUS) systems provide incentives for businesses in the form of flat rate tax and ZUS payments. So why do so many business owners not take advantage?

a 19% flat rate of income tax and a combined effective cost of PLN 700 per month for ZUS and health insurance.

An LLP also provides a tax-efficient way of remunerating senior colleagues. The legal control and representation of an LLP rests with the general partner, so by bringing colleagues into the partnership they are able to enjoy the benefits of lower tax and ZUS rates without necessary acquiring any share in the ownership or control of the business.

By Steven Foster

8

The idea is simple. If you are running your own business, you are producing goods or services, doing your bit for the economy and hopefully creating employment. The system recognises that this is well worth encouraging, so both corporations and self-employed businesses pay income tax at the same flat rate of 19% and the selfemployed pay low rates of ZUS and health insurance.

Despite the tax advantages on offer, limited liability companies (Sp. z o. o.) are still the standard vehicle for so many businesses. This is very often an unnecessarily expensive way of generating profits. The effect of a limited company on a Polish resident owner is to convert the 19% flat rate tax into a potential marginal rate of 32% and to trigger full ZUS and health insurance rates if the earnings are paid under employment contracts or most Civil Code contracts. Being a foreigner provides no escape from this, unless you are also non-resident.

Extracting profits by invoicing from foreign companies is fraught with difficulties, not least of which is the requirement to have comprehensive transfer pricing documentation in place and the likelihood that one day the arrangement may be put to the test by the tax authorities. Invoicing from a Polish-registered self-employment is not safe either if the apparent service provider is in fact a part an owner or part of the management team of the business being invoiced.

It’s not all doom and gloom of course.

There is a major benefit of running your business through a company in that, barring extreme misfortune or just plain bad management, the company’s legal status provides a protective screen between its owners and its creditors. In the event of

The self-employment option

insolvency, it is the hapless creditors who will generally be out of pocket. However, there is another vehicle which offers the same protection against creditors without losing the tax and ZUS advantages – the limited liability partnership.

Extracting profits by “invoicing from foreign companies is fraught with difficulties

”

An LLP has limited partners, who have no exposure to creditors, and a general partner who is fully exposed. However, the general partner is usually a limited company, owned and controlled by the business owner, with no assets. Potential creditor claims are effectively locked out in just the same way as for limited companies.

Foreigners who are able to own and run a Polish limited company are also able to be limited partners in a Polish LLP. They are treated as self-employed for tax & ZUS purposes, giving them the option of paying

For those of you who are proud owners of a US passport, you may be surprised at how easy it is for you to set up and run a business in Poland. You may have heard that only EU or EEA nationals are allowed to register as self-employed in Poland, but that is not true. Like any foreigners, you can run a business through an LLP and enjoy the tax & ZUS treatment available to the self-employed but, possibly unique among non-EU/EEA nationals, you may also register yourself as self-employed.

This is thanks to a little known treaty on business relations between Poland and the USA signed in 1990.

Registering a self-employed business is a simple online process, which takes no more than about 20 minutes. The REGON number is added automatically, along with a NIP number if required. There could be a couple of weeks of delay whilst the Interior Ministry checks whether the business activity is permitted, but then the business is basically ready to go.

The benefits of the 1990 treaty don’t end with registration of the business. The fact of business registration provides all the justification you need for a residence card.

There is no need for a visa and no need for a work permit. A US national may come to Poland, register a self-employed business and apply for a temporary residence card as soon as the online registration is complete.

All this good news doesn’t means that US nationals should rush to the online business registry and register as self-employed.

As well as the lack of any protection from creditors, the tax advantages are cancelled if the purpose of the self-employment is to invoice another company for managementrelated services. Converting your company into an LLP is likely to be a lot smarter than invoicing it through self-employment. n

March 2014

www.bizpoland.pl

Advisory

Dusk for Ukraine, dawn for Poland?

“May we live in interesting times”, as was once written... and indeed, few, even a couple of months ago, would have expected that all Europeans would be witness to history to the extent we have been in the last few days and weeks in Ukraine. Moreover, however the crisis develops – or resolves itself – there is little doubt that the consequences for Poland, Central Europe and the European Union will be dramatic.

By Marek Matraszek

The intentions of President Putin are in one sense clear – over time, to restore Russian influence in the post-Soviet space on a model that is akin to that of the Soviet Union itself. That involves a loyal Russian core around Moscow, satellite states in the periphery of the old Soviet Union, and then finally – perhaps most challengingly – a buffer of pliant and docile neighbouring countries in the East of the European Union and NATO. In seeking to achieve that goal, Putin must rely on key European Union countries such as France and Germany, and above all the United States, acquiescing in this project, at least tacitly.

This is the first reason why the position of Poland is key in the success or failure of the Putin Project. Poland has led the way in the last 20 years in supporting Ukrainian independence, and then the progress of Ukraine towards the West. Although hampered by the scepticism of some EU countries, with the support of countries such as Sweden and the Baltic States Poland worked hard to persuade key policy makers in Brussels and Washington that a Ukraine permanently linked to the West would be good for regional stability, and also encourage Russia itself to undertake market and democratic reform.

Putin’s violent reaction to the collapse of his influence over the regime in Kiev, paradoxically shows the strength of th at premise: an

2014 March

independent and democratic Ukraine, close to the West, is resisted by Russia precisely because the latter remains an unreformed and regionally ambitious power.

History has many times shown that while there may be temptations to appease dictators, and seek “peace” at the price of surrendering principle to tyrants and aggressors, whatever short-term benefits there seem to be they are quickly overturned by events, and further instability and conflict. Poland, having been a victim of this political philosophy before World War II and in the Cold War, knows only too well that history is on her side. That is why the government of Donald Tusk, and especially Foreign Minister Radoslaw Sikorski, have been so vigorous in arguing within the EU and NATO the need for a far-reaching response to Putin’s aggression.

Although the EU’s reaction has thus far been cautious, the consequence of the Crimea crisis is deep: the premise that Russia is led by a rational leader with whom “one can do business” has been shattered forever. As long as Putin remains in charge of Russia, the ability of the latter to exercise influence in Europe as before is dramatically diminished.

This will have serious consequences. Just one example: in the field of application of energy policy by the EU, the determination to

impose the Third Energy Package on Russian pipeline interests in Europe will increase significantly. Such an application to both Nordstream and South Stream gas pipelines will make those projects financially unviable, undermining Gazprom and weakening the Russian economy.

The other area of evolution will surely be in the conduct of EU foreign policy. The model of the External Action Service led by Baroness Ashton has been exposed by the crisis as woefully inadequate. At a time of new conflict of Europe, the EU needs a more activist foreign service, run by a politician with a personality. Some see current Polish Foreign Minister Radoslaw Sikorski as the ultimate winner, as later this year the EU seeks new leadership in Ashton’s post.

Most dramatic has been the new reengagement by the United States in the Ukraine crisis. Although hampered by the failed principles of the “Russia Reset”, the Obama Administration has been more vigorous than many expected in throwing its support behind the new Ukrainian government and resisting the Putin narrative of the Majdan Revolution being a “fascist plot” led by Nazi hooligans. If the US overturns its policy to Central Europe by re-engaging in the region – and invigorating such projects as Missile Defence – that will be a beneficial change in reasserting not just a stronger EU-US relationship, but also a revived Polish-US one as well.

The final benefit will surely come in Poland, as the domestic political scene unites around concern for the protection of the Polish national and security interest. After years of deep division, there is a chance that Government and Opposition will start to speak with one voice. It remains to be seen how the upcoming election cycle will impact that change, but there is hope that party political divisions will at last be tempered by a common understanding of the national interest.

Once again, how the Ukraine crisis will play out in the weeks and months to come is unclear. But the impact on Poland’s position in relation to the EU, the United States, and also the country’s internal political dynamics, may be deep and fundan mental for years to come.

Marek Matraszek is the Founding Partner of CEC Government Relations. He can be emailed at mm@cecgr.com

9 9

www.bizpoland.pl

Advisory

Four internal scams that could bleed you to death

By Preston Smith

10

Assuming you read last month’s column and now know the definition of “tunneling” in the context of money laundering and Central Europe (and hopefully assuming that you have not had the bad luck to experience this type of theft first-hand), we’ll now move on to more modern incarnations that could threaten your business.

True, old-fashioned, 1990s-style tunneling does exist—this being the insertion of a person with a false identity into your firm with the sole goal of diverting bank transfers—but in the new millennium white-collar criminals have become much more advanced.

This is based primarily on the fact that old-fashioned tunneling is akin to a bank heist. Generally speaking, it is a one-shot, catastrophic event, the severity of which is likely to trigger at least a half-hearted police investigation. Far more effective is to bleed a firm over a number of years while also co-opting members of the company so that an investigation would provoke embarrassment, internal turbulence or worse, multiple convictions.

Thus the following methods are typically used, and CEE Consulting investigators literally see such setups on a monthly basis. Allow me to run through a few, which hopefully will not set alarm bells ringing—but then again, better late than never.

1) T he multi-tasking vice president.

This is perhaps the most common ruse. A vice president or high-ranking manager sets up a number of mirror companies (often sole proprietorships), which are de facto created by his wife, brothers, cousins or anyone else in his family. These will be used for billing purposes even though the actual services performed will still be conducted based on the resources available at his company. If the vice president attained his current status through talented salesmanship, so much the better, as he can easily meet clients on his own, suggest different billing addresses and then throw his own personal projects into the mix. While some companies are more vulnerable to this than others (think manufacturing companies with sale-and-buy back arrangements), a typical red flag is the “boutique marketing

firm” that literally nobody has ever heard of in the company but the vice president himself. Market research or consulting services are then booked and paid for and if the vice president has real independence, he simply signs off the money to himself. Such arrangements can last for years—with secretaries, accountants, employees and even passive CFOs becoming unwillingly coopted along the way. Eventually, if he goes down, so do a slew of key employees. Not so surprisingly, when the vice president is eventually confronted and fired, he is also given a healthy golden handshake to simply keep his dirty secrets to himself.

2) The self-marketer. While this is partially covered above, the number of marketing scams we see is at times astounding. These come in the form of kickbacks to the head of marketing for targeted advertising (i.e. he buys an advertisement in a magazine or on television but is well rewarded off the books); the arrangement of entertainers at company events that just so happen to be working for him; the mystery marketing or consulting study bought through an associate that is paid for but which nobody can ever find - or even dreaded art-auction scam, which we will cover at a later date, as this is more often to sort out bribes for politicians.

3) The valuation scam. This scam hit its prime before the real estate crisis, but it is still sometimes used today, especially in countries with political turmoil but high-value locations (think Ukraine).

Such a trick is relatively more complicated in that it involves the corruption of an approved appraiser who then pushes a valuation far too high in order gain a higher-than-deserved credit

agreement from a lender. Once the loan comes in, the money can be diverted during the developing of the land, the renovation period or even during fitout stages of a property. In worst-case scenarios, the special purpose vehicle (SPV) actually developing the property must declare bankruptcy, and despite the ensuing pain the money is simply gone for good. While this type of tunneling may seem unlikely in this day and age, it does happen, and even in the case of heavy hitters with good lawyers behind them, the embarrassment and potential risk to the reputation of a fund is often enough to get such investigations dropped.

4) T he IT team. There are so many IT scams out there that it would take a series to describe them all, but the worst can be debilitating to the profits of a company. A typical, not-so-smart set up involves two-to-four IT personnel who simply alter products and sell them through their own private companies on the side. These scams are often easily uncovered, as larger companies are always on the lookout for stolen or reverse-programed applications, but just as often the temptation often is simply too much. Look for such scams in companies set up by an “idea-man” type of entrepreneur who really does not have a great deal of understanding about the nuts and bolts behind the IT solutions in his own company. This happens more than you might think.

As you have probably noted by now, none of the above conform to the past, hard-core mafia tunneling jobs of old. In fact, such tunneling attempts often target banks or large private accounts, as there is still the chance of the big score. Yet the four examples above still amount to lost profits, potential humiliation and legal nightmares for small and large entrepreneurs alike—and more frightening, ask any risk consultancy, white-collar crime specialist or detective agency and they will tell you the same n thing: They happen all the time.

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-the-ground investigation and surveillance.

March 2014

www.bizpoland.pl

Equities News

Eurocash wholesaler posts PLN 74.8 mln Q4 net profit, far below expectations Listed wholesaler Eurocash posted PLN 74.8 mln in net profit in Q4 2013, well below the PLN 105.8 mln profit expected, the company`s financial report showed.

Revenues of PLN 4.23 bln were up by 0.5% y/y and were 4.8% above consensus.

However, EBIT dropped 41.3% year on year to PLN 94.4 mln, a full 32.8% below the consensus call for an EBIT of PLN 140.5 mln. EBITDA of PLN 124.1 mln was down 36.2% year on year. Margins suffered y/y in two of the group`s three client segments.

EBIT for distributor Tradis is down nearly 70% year on year following a prior period loss of a key client. Margins in the segment are down to a mere 1.4% from 3.8% a year earlier. Management blamed the margin slide on internal factors tied to the cost of restructuring and integration of Tradis into the group. The independent segment, including cash & carry, saw margins decline to 1.0% from 2.4% a year prior as EBIT was slashed in half. Only the integrated clients segment managed to defend its EBIT margin at 6.4%, vs. 6.5% in Q4 2012. The bottom line benefitted from lower financial costs and lower tax burdens, managen ment added.

Dom Development cuts dividends drastically to PLN 2.2 per share Listed real estate developer Dom Development will recommend paying out PLN 54.5 mln dividend this year or PLN 2.2 DPS, the company said in a market filing.

The sum includes PLN 53.35 mln from 2013 profit and PLN 142k in retained profits from prior year periods. The recommended total sum represents 99.9% of 2013 consolidated net profit and is in line with the dividend policy released in April 2013, the company also said. Dom Development paid n DPS of PLN 3.68 from 2012 profit.

PHN says it will increase its debt ratios Listed real estate firm PHN will spend less than PLN 200 mln on its Domaniewska 37C project in 2014, CFO Wlodzimierz Stasiak told a news conference. - Outlays will be lower than PLN 200 mln, Stasiak said. - We want to conduct this investment resorting also to external financing at the level of 60-70%. The company generally will seek to increase its LTV ratio, the CFO suggested.

2014 March

- Generally we want to systematically increase the level of external financing in our structure, so that it constitutes 30-40% of n the whole portfolio, he said.

Boryszew for strong increase in earnings in 2014 The following are takeaways from the statement of listed industrials group Boryszew CEO Piotr Szeliga during an earnings conference: ON 2014 OUTLOOK: - Boryszew expects a significant increase in the group`s earnings in 2014; ON STRATEGY: Boryszew will target achieving a good debt and cash position under the new strategy to be published in Q2 rather than Q1 as expected earlier; ON SEGMENTS: - Boryszew assumes that the automotive segment will reach 10% EBITDA margin in 2-3 years and become the key division of the group with revenues at some EUR 500 mln; - aluminum segment is likely facing a difficult year, but the outlook for the following several years is very good; - copper segment enjoys high sales growth rate, while lead segment is still deeply below expectations; ON REAL ESTATE PROJECT SALE: - the group

plans to sell its real estate project in Lucka street in Warsaw to avoid freezing PLN 300-350 mln for two years; ON CREDIT AGREEMENTS: - Boryszew has not violated the covenants of the credit agreements in terms of net debt-to-EBITDA ratio as market analysts feared. Taking into account, among others, that the group includes cash inflows from discontinued operations, the indicator measured some 3.5x rather than 4.2x as of end-2013; ON MEXICAN PLANT: - Boryszew will decide on the launch of a car parts plant in Mexico by June and the potential start would take place in 2015.

Echo Investment real estate nets PLN 1.7 mln in Q4 vs. PLN 2.6 mln profit expected Listed developer Echo Investment fell just short of market expectations with PLN 1.7 mln attributable net profit in Q4 2013 versus expectations for a PLN 2.6 mln net gain, Q4 financial report showed.

Property revaluation took PLN 32 mln from the P&L. Revenues of PLN 122.2 mln were down by 17% y/y and 6.8% below consensus. Of the revenues, 57% came from shopping centers, 20% from housing, 20% from the office and hospitality segment. n

11

www.bizpoland.pl

Equities News

GTC developer back in the development game, with 200 million pln debt placement Listed real estate firm GTC wants to keep its net financial debt to assets ratio not exceeding 70% until PLN 200 mln in bonds of a new issue, to be sold in March, mature, the company said in a market filing. `The management board of the Company estimates that until the complete redemption of the New Bonds the net financial debt to assets ratio will not exceed 70%, the filing reads. The company has not disclosed when the new bonds will mature, but the issue number suggests 5Y bonds maturing in March 2019. Earlier the company suggested it would prefer to keep LTV capped at 50%. The company admitted the debt may increase since the company plans to develop additional properties between 2014 and 2016. The company plans to sell the PLN 200 mln bond issue in the first half of March, the company said, in line with the EUR 30-50 mln range suggested earlier. GTC faced PLN 841 mln in outstanding standalone debt at the end of 2013, including PLN 350 mln in short-term debt tied to bonds maturing in April 2014 and PLN 85 mln in other short-term debt, the company said. - In order to prolong the average maturity of the Company`s debt,

Cyfrowy Polsat media beats expectations on PLN 173.1 mln Q4

12

Listed media group Cyfrowy Polsat, with TV broadcast and DTH satellite services in Poland, beat market expectations with a Q4 2013 attributable net profit of PLN 173.1 mln, the group`s Q4 financial report showed. Rising net profit was put largely to higher FX gains on debt and lower financing costs, but gains against the prior period were visible across the P&L, even excluding acquisitions. Revenues were up 6.6% y/y, in part on consolidations, to beat the consensus. Adjusted for purchase of new television assets, revenues would have been up 3.5%, with gains in both retail DTH and television advertising revenues. Revenues on retail DTH ops grew 4.3% year on year.

Rising ARPU - up 2% y/y for overall operations - offset losses in client counts for the higher-shelf Family package. Management also tipped its hat to new revenues from internet television and increased telco revenues. The television segment boasted a 15.0% gain in ad revenue, mostly on consolidations, and said an adjusted measure

on 19 February 2014 the Company delivered proposals to acquire bonds issued by the Issuer to certain, selected institutional investors who have submitted their binding bookbuilding declarations, the company said. The company expects to close the sale in the first half of March. The company

has not disclosed when the new bonds will mature, but the issue number suggests 5Y bonds maturing in March 2019. GTC faces PLN 350 mln in short-term debt tied to bonds maturing in April 2014 and PLN 85 mln in other short-term debt, the company n said of the debt levels at end-2013.

would have been up 3.9%. EBITDA of PLN 275.4 mln was up 11% year on year reflecting profitability from cost cutting in the retail segment to offset rising costs in television.

Ex-acquisitions, EBITDA of PLN 265.1 mln was up 7.3% y/y. Q4 production costs were n up 17%, or 14% ex-consolidations.

last year payout, Weglowski said. Orbis paid a PLN 64.5 mln dividend from 2012 profit, which translated into PLN 1.4 DPS. Also from 2011 profit Orbis paid a PLN 1.4 DPS. Also, Orbis Listed signed a franchise agreement for an 80-room hotel under construction in the city of Grudziadz, Orbis said in a press statement. The hotel will be operating n under the Ibis Styles brand.

Orbis posts revenues in 2013 of PLN 683 million, down nearly 4% The company attributes the fall to increased revenue in 2012 due to the Euro 2012 football championships. In Q4 of 2013 the company recorded a 49.2 pct increase in its EBITDA (PLN 44 mln in 2012). High operating profits in Q4 and cost cutting measures resulted in an EBITDA of PLN 199.1 mln for 2013, above the forecasts published by the company in September. In 2013 the company signed eight new franchise agreements resulting in the addition of 700 new rooms to its chains. Orbis will recommend a dividend payout from 2013 profit at least equal to the 2013 payout, deputy CEO Ireneusz Weglowski said. - We will be recommending a dividend payout this year no lower than

Stalprodukt steel sells 99% stake in Gradir Montenegro for PLN 153 mln Listed steel group Stalprodukt saw its unit ZGH Boleslaw sign a conditional deal to sell 99.35% stake in Gradir Montenegro lead and zinc for PLN 153 mln to Balkan Mining Group, Stalprodukt said in a market filing. The proceeds from the sale will be allocated above all to the realization of new investment projects by ZGH Boleslaw, the filing read. The parties will also sign a 5-year agreement for Stalprodukt to buy 15k tons of zinc concentrates from Balkan Mining Group worth PLN 160.1 mln, following the finalization of the current n transaction, the filing added.

March 2014

www.bizpoland.pl

Equities News

WSE-operator GPW posts PLN 28.6 mln. net profit in Q4 vs PLN 24.1 mln expected The Warsaw Stock Exchange operator GPW posted a net profit of PLN 28.6 mln in Q4 2013, slightly above expectations for PLN 24.1 mln gain and up by 35% year on year, PAP calculations against the group annual report and 9M figures showed. The Q4 net profit was boosted by the settlement of a technological tax break related to the UTP platform license, GPW said in comments to results. Total revenues met the consensus at PLN 70.8 mln in Q4, with PLN 51.5 mln generated on the financial market and PLN 18.8 mln on the commodity market, PAP calculations showed. The operating profit measured PLN 26.4 mln, 7.4% above expectations and down 1.8% y/y. WSE alone recorded PLN 16.7 mln EBIT, commodity market TGE posted PLN 10.6 mln, while BondSpot - an unimpressive PLN 0.3 mln.

Operating costs edged up by 13.6% y/y to PLN n 45.1 mln, GPW said.

Energa power to take 51.7 mln Foreign investors hold 47% hit on 2013 net profit share in WSE equity trade in Listed power group Energa will suffer some 2013 PLN 51.7 mln hit on its 2013 consolidated net profit due to non-cash one-offs - a reserve on missing CO2 emission allowances and an asset impairment on the Ostroleka power plant, Energa said in a market filing late Tuesday. - Creating a reserve for CO2 allowances in the Generation Segment will impact (a) the EBITDA result by some negative PLN 35.7 mln and (b) the net profit of the Energa Group by some negative PLN 28.9 mln, the filing reads. - Creating an asset impairment at Energa Elektrownia Ostroleka unit will impact (a) the EBITDA by some negative PLN 28.2 mln and (b) the net result of the Energa Group by some negative PLN 22.8 mln. The reserve was created as Energa has not yet received free CO2 emission allowances for 2013 to which it is entitled, the fim explained. The asset impairment, in turn, is a result of an impairment test conducted as at November 30, the firm said. - The test demonstrated the need to conduct an asset impairment of PLN 151.6 mln, of which PLN 123.4 mln was booked in Q1 2013 and PLN 28.2 mln was booked in Q4., the filing reads. All the above figures are subject to change as the group`s 2013 financial statement is currently being audited, Energa stressed. The group will publish its FY2013 on March 10. Similar reserves pertinent to missing CO2 emission allowances have already been made by Energa`s peers: n PGE, Tauron, & ZE PAK.

2014 March

Foreign investors saw their share in equity trade on the Warsaw Stock Exchange main market edged down to 47% in 2013 from 48% in 2012, WSE operator GPW said in its FY2013 results presentation. Polish institutional investors increased their share in equity trade to 38% from 34% last year, while the share of individual investors fell to 15% last year from 18% in 2012, the pren sentation showed.

Central bank says real estate sector healthier Polish developers enjoy improvement of their situation as the number of unsold apartments is declining, construction costs are falling and new housing projects are becoming more profitable, NBP said in a report on the housing market in Q4 2013.

DEVELOPERS: The condition of developers sector is improving thanks to a slowdown of housing price decline trend, lower construction costs, a decline in the number of unsold apartments and higher demand. - As the number of apartments awaiting buyers is gradually declining, developers` financial costs of their maintenance are falling, and the above-mentioned factors should lower costs of finishing the already launched investments as well as increase profitability of new investment projects. As a consequence developers are launching new investments.

NEW PROJECTS, PRICES OUTLOOK: If the number of newly launched housing projects continues to increase y/y as was the case in H2, in two years there will be more apartments on the market and price increases will be moderate. APARTMENTS STOCK: Stock of unsold apartments continued to decline in 2013 with the level of unsold flats heading towards equilibrium. PRICES IN Q4: Growing demand and declining oversupply of apartments on the primary market in the six biggest cities resulted in taming the declining price tendency on the primary market in these cities. It also translated into stabilization of housing prices on n the secondary market of these cities.

IT firm Asseco South Eastern Europe expects to record similar results in 2014 as in 2013 IT firm Asseco South Eastern Europe, a unit of large-cap Asseco Poland, expects to record similar results in 2014 as in 2013, CEO Piotr Jelenski said during a press conference.

- Our goal is to maintain results from 2013, Jelenski said. - There are no greater chances for the macro situation in the region to boost our results in any way. The only chance for growth is entry into new markets and crossselling. Also of note: Asseco SEE could pay EUR 3-4 mln dividend from 2013 profit, CEO Piotr Jelenski said. - We`ll want to allocate all free cash resources to dividend, Jelenski said. - That will probably be between EUR 3 n and 4 mln, likely closer to EUR 4 mln.

13

www.bizpoland.pl

Equities News

P4 mobile operator records PLN 707 mln EBITDA in 2013 on PLN 3.72 bln revenues Mobile telecom P4, the Play network operator, recorded PLN 707 mln EBITDA in 2013, up from PLN 562 mln in 2012, with revenues growing 4% y/y to PLN 3.72 bln and the number of clients up to 10.7 mln, P4 representatives said during a press conference. In Q4 alone, EBITDA reached PLN 211 mln as it grew 4% q/q, while revenues reached PLN 979 mln, up by 4.5% q/q, officials said.

The company expects further revenue growth in 2014 after deceleration last year caused by reduction of wholesale Mobile Termination Rates (MTR). The number of clients of the Play network in 2013 rose by 24% y/y to 10.7 mln, a 19% market share at end-year, the firm said.

Post-paid clients accounted for 44.4% of the total number at end-2013 versus

IT distributor ABC Data enters Romanian market, wants top 5 place by 2017

14

Polish IT distributor ABC Data, has recently announced it has entered the Romanian market, where it plans to make it to the top 15 players within the first year of activity. The company hopes to enter in top five vendors by 2017. Between 2010 and 2013, ABC Data had a stake in local Scop Computers, which went insolvent. ABC Data offers a portfolio of 36,000 products from over 200 international producers, targeting customers among local companies in all market segments, namely IT integrators, resellers, IT and consumer electronic stores, as well as store chains. It plans to build a team of 20 staff in Romania by mid-2014.

- We intend to include local manufacturers in our offer as soon as possible, always being open to the prospect of new partnerships, said Alexandru Gheorghiu, Sales Manager ABC Data Romania. - The market in Romania has a huge growth potential and is extremely competitive, which is why we are aware that a modern distributor has to exceed traditional business models and to provide suppliers and partners with extensive support in logistics, promoting sales and developing complete IT solutions, said Norbert Biedrzycki, CEO and Chairman of the Board, ABC Data SA. On average, the company has a 30 percent share on the markets where it has been active for several years, namely Poland, the Czech Republic, Slovakia, Lithuania, Latvia, Estonia and Hungary. At the moment, ABC Data focuses on developing projects in countries

44.6% at end-2012. P4 became a net payer of interconnect costs for the first time last year due to the introduction of symmetrical fees as of the beginning of

2013, the firm said. The firm incurred interconnect costs of PLN 133 mln last year versus a positive net balance of n PLN 89 mln in 2012.

with high potential, such as Romania and Germany. The InterLink platform, developed by the company, is available in all markets where the company is present. Over 90 percent of orders are currently generated on the InterLink platform, available for partners in Romania on ABCData.com.ro. In 2010, the company launched its own brand Colorovo, the product portfolio including tablets and mobile device accessories, office supplies and equipment, as well as computer accessories.

ABC Data has been listed on the Warsaw Stock Exchange since 2010. For 2013, the group estimates a turnover of some EUR 1.2 n billion.

onwards, the firm said in its 2013 financial report. - Management maintains its stated policy objective of making distributions at the level of PLN 0.42 per share from 2014 onwards, subject to no major M&A transactions taking place, the report read. - Financial leverage may grow towards 1.0x Adjusted EBITDA over the medium-term as necessary to meet this distribution objective, the firm also said.

Back in February 2013 Netia said it intended to recommend a roughly PLN 128 mln (PLN 0.35 per share) payout to shareholders through buyback in 2013 and some PLN 145 mln (ca.

PLN 0.40 per share) to shareholders in the form of dividend, buy-back or capital redempn tion as of 2014.

Netia forecasts PLN 1.735 bln revenue Telco Netia expects to post PLN 75 mln adjusted EBIT, PLN 505 mln adjusted EBITDA and PLN 1.735 bln revenues in 2014, while spending PLN 200 mln on investments and recording PLN 305 mln in adjusted operating free cash flow, the firm said in a market filing. The guidance presented does not take into account the impact of one-off operating costs or investment outlays tied to the integration process, estimated at PLN 8 mln and PLN 14 mln respectively, Netia said. The firm withdraws its mid-term financial goals under review since the publication of Q3 2013 financial results, the filing also stated. The decision to release new mid-term guidance will be made based on the results of the next planning round. Netia stands by its profit-sharing objective of PLN 0.42 per share from 2014

Bioton biotech posts PLN 3.9 mln net loss in Q4 2013 Listed biotech firm Bioton posted a Q4 2013 attributable net loss of PLN 3.9 mln, as compared to a PLN 15.1 mln loss in the prior-year period, the firm`s financial report out Friday post-session showed. Bioton recorded a gross operating profit of PLN 4.1 mln, up from PLN 1.9 mln in the year-prior period, the report showed. Group revenues in Q4 amounted to PLN 93.1 mln, up slightly from PLN 88.8 mln in Q4 2012. Also, Bioton signed a letter of intent on selling its 50% stake in medical equipment producer Copernicus to the firm`s other shareholders for PLN 25 mln, the firm said in a market filing. The transaction conclusion, subject to a number of conditions, is expected by March n 31, 2014.

March 2014

www.bizpoland.pl

Equities News

MCI buys 20% of O2 portal from Innova Capital Listed firm MCI said it bought 20% of 02 from Innova Capital, and analysts speculate that this is a first step in 02`s listing on the Warsaw Stock Exchange.

Shares in MCI moved up 1/2% to 10.3 pln on Friday after the news. 02 bought WP.pl from Orange Telecom last week, in a move that further consolidates Poland`s portal market. The combined 02/WP is now the n biggest portal in Poland.

PGNiG natgas plans drilling 10-11 wells in search of shale gas in 2014 Listed natural gas group PGNiG plans to drill 10 to 11 wells in its shale gas exploration effort this year, PGNiG`s exploration works director Maciej Nowakowski said during a debate hosted by PAP. - PGNiG alone has 10 or possibly 11 wells planned for 2014, Nowakowski said. - We are concentrating works in the Pomorze basin.

If PGNiG alone can drill 10 wells, then all companies searching for shale gas in Poland should be able to meet the expected goal of 40 wells, Nowakowski believes.

- I think that all companies together are able to drill this number of wells, he said.

Poland expects some 40 shale gas exploration drillings in 2014 and hopes the first commercial drilling to take place at the end of the year, Environment Minister n Maciej Grabowski said.

PGE power to take PLN 875 mln net profit hit in 2013 on additional reserve and asset impairment Listed power group PGE will suffer a negative impact of some PLN 875 mln on its 2013 net profit due to non-cash one-offs in the shape of a reserve for CO2 emission allowances and an asset impairment, the firm said in a market filing. The additional reserve was tied as PGE did not receive free CO2 emission rights it is entitled to by end-2013, the firm explained. The asset impairment, in turn, will be booked as PGE Group recognized the loss of value in property, plant and equipment in Pomorzany CHP, Zgierz CHP and Dolna Odra power plant, the filing read. WOOD&CO ANALYST

2014 March

BRAM BURING: The news of PGE’s 2013 CO2 provision, following similar announcements from Tauron (PLN 270 mln) and ZE PAK (PLN 122 mln), is not unexpected (and is already reflected in some brokers’ 4Q estimates), but further asset impairments at the ZEDO plants and the Zgierz CHP are, in our view, unexpected and are likely to put concerns about the dividends back in focus. Including provisions and impairments, we see 4Q net profit at PLN 211 mln and full-year net profit at PLN 3.94 bln, implying a dividend at the top of the payout range of PLN 1.05/share (a 5.7% yield) and, according to the Bloomberg consensus, the market was expecting a DPS of PLN 1.12/share (a 6.0% yield), or a payout of 53%; given that this is the last “decent” dividend expected before the Opole costs start to bite (next year’s consensus DPS is PLN 0.8/share, or 30% lower), we recommend switching at these levels into CEZ where there is both a FCF argument for higher sustainable payouts (e.g., capex peaking this year and should fall by 35% in 2015E), as well as a political one (the new FinMin is eager to bring down the budget deficit, whereas the government in Poland has already received its windfall from the n conversion of pension assets).

Lotos fuel expects 550k ton crude output in 2014, maintains 1.2 mln ton annual goal for 2015-2016 Listed fuel refiner Lotos wants to extract 550k tons of crude oil in 2014 and maintains its goal of 1.2 mln ton annual production in years 2015-2016, CEO Pawel Olechnowicz told a news conference.

- This year we should achieve the level of 550k tons of crude, Olechnowicz said.

Lotos also maintains its goal of achieving 1.2 mln tons annually in 2015-2016, the CEO assured. - I`m sure we will meet that goal, he said. To achieve that goal and to get back all the money invested in the Yme deposit, Lotos will seek to purchase another project in Norway, the CEO added. Lotos concluded a deal to buy production assets on the Norwegian Continental Shelf from Centrica for USD 175.8 mln on December 30. The purchase will allow Lotos to take advantage of a tax shield linked to the investments Lotos made on the Yme field. In Lithuania, production is expected to remain stable at 90-100k tons, Olechnowicz also said. n

LPP fashion predicts 57-58% gross margin on sales in 2014 Listed fashion retailer LPP expects to record a gross margin on sales at 57-58% and a single-digit like-for-like (LfL) sales growth y/y in 2014, deputy CEO Dariusz Pachla told a news conference. - I think that the gross margin on sales may amount to 57-58% this year, Pachla said.

The group`s gross margin on sales rose to 58.5% in 2013 from 56.7% in 2012. In Q4 2013 alone it stood at 60.6%. LPP maintains plans for a single-digit LfL sales growth, but sees repeating the nearly 8% growth recorded in 2013 as challenging, the official also indicated. - We assume a several percent growth of LfL sales, Pachla said, adding that recording an almost 8% growth would be a big challenge. In 2013, the group recorded a 7.7% LfL sales growth, including a 7.6% n growth in Q4 alone.

15

www.bizpoland.pl

Equities News KGHM copper expects strong 2014 Listed copper giant KGHM will surprise the market positively with a 2014 net profit guidance to beat the current market consensus, CEO Herbert Wirth told reporters referring to the PLN 2.26 bln consensus.

- We will deliver a positive surprise, Wirth said. KGHM is yet to present its 2014 budget after the supervisory board requested additional analyses of the firm financial plan before approving it, and will hold another sitting to get acquainted with the material at the end of March, KGHM press officer Sylwia Rozkosz told PAP mid-February.

Analysts surveyed by PAP expect KGHM to guide for PLN 2.255 bln net profit, PLN 3.211 bln EBIT, PLN 4.144 bln EBITDA and PLN n 16.821 bln revenues in 2014.

Famur wins first deal in Indonesia Mining machinery maker Famur signed a PLN 31-40 mln deal on delivery of mining equipment to Indonesia`s PT Pesona Khatulistiwa Nusantara, the company said in a market filing. The final value of the deal depends on detailed terms of the contract, to be presented by the client. The contract marks Famur`s entry to the Indonesian market, which the company calls prospecn tive, the filing read.

Polimex-Mostostal lawsuit claims 177 million pln in damages from the state Listed builder Polimex-Mostostal and its consortium partners in A1 motorway stretch deal filed a lawsuit against state road authority GDDKiA seeking payment of PLN 177 mln in contractual fines for the contract, Polimex said in a market filing. Contractual fines attributable to Polimex amount to PLN 79 mln. The company claims the contact was terminated by consortium members, due to failure on the part of GDDKiA to present payment n guarantees.

Polish power firms will invest PLN 30 bln to 2020 in new generation capacity

16

Polish power firms will put PLN 30 bln to 2020 in new generation capacity Polish power firms will invest PLN 30 bln to 2020 in new generation capacity, Treasury Minister Wlodzimierz Karpinski said Saturday. - To 2020 these firms will invest PLN 30 billion, Karpinski said, naming Poland`s largest power utility PGE which just launched construction of a plant in Opole, as well as other firms with plans in Tychy, Stalowa Wola, Legnica, Wloclawek

and Turow. Bringing new capacity online will also require some PLN 10 bln in investments to the grid, Karpinski added.

Together with PLN 18 bln in planned gas system investments, Karpinski claims Poland is on track to have very modern generation capacity, very efficient and effective transit and very secure connections to the power and gas networks of the EU. - It radically increases energy security and simultaneously makes power more available and cheaper which will increase our n economic competitiveness.

Advertising market seen growing less than 1% in 2014 after 4.5% decline in 2013 The advertisingmarket is expected to grow by 0.5-0.9% y/y in 2014 after a 4.5% annual decline in 2013 as the market is slowly exiting the period of slowdown, media house Starlink said in a statement. - Despite the signs of growth acceleration in the Polish economy the media market is exiting the slowdown period very slowly, therefore Starlink forecasts the annual growth rate of the advertising market in 2014 in 0.5% - 0.9% range, the statement reads. In 2013 the advertising budget declined by PLN 328.5 mln or 4.5% to an estimated net spending of PLN 6.995 bln, the report said.

TV ad spending declined by 3.6% in 2013 as a whole, but the last quarter of 2013 recorded a 0.3% annual increase, the first such increase in ten quarters, Starlink estimates.

Thematic channels increased their ad revenues by 4.6% last year and their share in the TV ad market to 21.5% from 19.8% in 2012, the statement reads. Radio broadcasters recorded flat ad revenues y/y in 2013, while internet was the only medium which recorded an annual increase, of 7.5%, in revenues, Starlink said. In-stream internet advertising was the strongest internet ad segment (42.6% annual growth) along with internet advertising for mobile devices, the statement showed. The 2013 decline in overall ad spending was influenced by a 20% annual cut in advertising budgets by telecom companies, Starlink also noted. n

JSW CEO on planned acquisition and financings Following are highlights from coal miner JSW CEO Jaroslaw Zagorowski interview for daily Parkiet. ACQUISITION OF KNOROW-SZCZYGLOWICE MINE - We are working with advisor (PwC) that we chose alongside with Kompania Weglowa management. It is aimed at guiding us towards the optimal price of the transaction. Afterwards, negotiations will be held with KW management over the final

price. - We assumed that we should make it (the decision on the acquisition) by mid2014. We have to make sure it will be beneficial to JSW. . Based on strategic plans, we are convinced about sensibility of the transaction. I am convinced to [make] the transaction but I have to have economic justification for it. - We do not know the valuation yet. It has to be satisfactory to both parties. It has to be remembered that optimization of the output structure and modernization of the mine in order to increase coking coal output will be costly. In total, it will be several hundred million PLN within several years. We will take it into consideration during price talks with Kompania Weglowa. - The acquisition will be partly financed from own means and partly via debt in order to have a safety cushion in the form of cash. We do not know yet what we will put greater pressure on. DEBT - We are running talks with the market on financial support in order to be ready not only for the acquisition of Knurow-Szczyglowice mine but also for financing growth-oriented investments.

- The amount will depend on the price we will pay for Knurow-Szczyglowice.

Therefore talks on the financing are general. We do not assume a share issue. We are not indebted. We have good balance sheet and we may incur debt. However, we are not thinking of eurobonds. The amount we want to garner is not so high to start a costly eurobond issue. OTHER ACQUISITIONS - Our strategic plan assumes continuous increase of resources, but currently we are focusing on organic growth. If opportunities appear on the market, we will analyze them, but not at any price. COAL PRICES - Looking at economic situation in Poland and Europe, the nearest future may bring slow coking coal prices increase and we should gain better prices on the market than the benchmark would suggest. I have an impression that we are past the worse, but a return to the levels of USD 200 per ton within a year is impossible. OUTPUT We produces 13.6 mln tons of coal in 2013, by 2015 output should rise to 14 mln. If we launch the sixth day of work after 2015, the output will increase by 10% and we will reach 15.5 mln tons. Adding the acquisition we could reach even 19 mln tons in about 2018.

STOCK PILES - Some 800,000 tons of coal is in stock piles currently versus some 1.5 mln last year, but their structure changed and now steam coal makes up a majority of it. At the end of the year, the total size of inventories should be close to the current level or slightly lower. Steam coal will n continue to prevail. Source: GPW

March 2014

www.bizpoland.pl

FDI News

Poland’s Largest Solar Park Polish renewable energy company AMB Energia has launched the first phase of a project designed to be the country’s largest solar park.

The photovoltaic farm in Lipsk was fitted with an installed PV capacity of 0.3MW, and it is part of the company’s Podlasie Solar Park. The firm says its investment will consist of six PV farms with a total solar energy capacity of 7MW. AMB Energia says the solar park will have a total space of some 140,000 square metres, making it what the company said is the largest investment in photovoltaics in Poland.

The farm will provide the solar energy to local energy utility PGE Dystrybucja.

The Lipsk farm was fitted with PV panels supplied by Renesola and inverters acquired from Refusol, a subsidiary of USbased Advanced Energy. It was fitted with a 15 kV collection system.

In addition to the facility in Lipsk, which consists of a total of 1120 PV panels, the remaining five PV farms will be located in Jedwabne, Kolno (two farms), Lękowo and Zagroby Zakrzewo. The five municipalities are located in the country’s eastern Podlaskie region.

Construction began in mid-2013. Under the plan, the opening of the facility in Lipsk is to be followed by the launch of three

other PV farms. “In the first half of 2014, we are planning to complete a further three investments of the Podlasie Solar Park and increase the on-grid installed PV capacity in Poland by about 200%,” AMB Energia said.

Set up in 2010 and headquartered in Warsaw, AMB Energia says its fields of activity include solar and wind energy projects. Its investment portfolio includes renewable energy projects with an aggregate capacity of more than 100MW, according to data released by the Polish company.

The company says it develops PV projects in two models, build-own-operate (BOO) and build-own-transfer (BOT).

According to data released by the staterun Office of Energy Regulation (URE), by the end of 2013, Poland’s photovoltaic farms had a total installed and connected capacity of some 1.9MW, an increase from less than 1.3MW a year earlier. This means that photovoltaics were the country’s fourth largest renewable energy source, preceded by wind, biomass and hydro energy, as shown by figures from the URE. The highest number of photovoltaic investments is currently located in Poland’s northern Warminsko-Mazurskie and Kujawsko-Pomorskie region, and also in the region of Lubelskie, in the country’s southn east, the IEO said in a market report.

Stora Enso plans to invest Euro 28 million in Murow sawmill Stora Enso plans to invest €28 million in modernising and developing its Murow sawmill to increase its capacity and improve its competitiveness. Stora Enso is rethinking its geographical mix as part of its transformation into a renewable materials company.

The investment in Murow sawmill will develop Stora Enso’s wood product offering in the growing Central and Eastern European markets. Stora Enso will also utilise the platform in Poland to support growth in selected overseas markets. “Stora Enso already has a well-established position in wood markets

2014 March

and is seen as a reliable partner. This investment in a strong growth market will enable us to serve existing and new customers even better in the future,” says Karl-Henrik Sundström, Executive Vice President, Stora Enso Printing and Living. The investment in Murow sawmill will increase Stora Enso’s consumption of Polish saw logs. The production capacity of the sawmill will rise to 140,000 m³/shift/year. Over the next five years, Stora Enso plans to increase the sawmill’s output gradually to 400,000 m³ per n year.

Sweden trade mission backed

by Invest in Pomerania The Pomerianian Development Agency has announced a competition for small and medium-sized ICT firms from the region. The winners will take part in a trade mission to Sweden on 1- 4 April 2014. The mission is part of the “Invest in Pomerania” initiative to boost trade with Nordic countries and Germany, particularly in the ICT sector, specialised sciences, technology parks and R&D centres.

Targban takes over Del Monte’s banana ripening facility Targban has agreed to acquire the banana ripening facility from Del Monte Poland, a subsidiary of Fresh Del Monte Produce Inc., a global manufacturer and distributor of fresh fruits and vegetables. The facility will let Targban increase the operational capabilities of one of its flagship products - bananas.

The acquisition will also help the company to strengthen the position of a leading supplier of fresh fruits and vegetables from around the world (South America, Africa, US, New Zealand) in Central Europe.

Business Mission to Turkey Ministry of Economy, Polish Chamber of Commerce and PAIiIZ in cooperation with the Polish-Turkish Chamber of Commerce, Deloitte and Dentons invite Polish companies to participate in the Polish-Turkish Business Forum in Istanbul. The event will take place on 6 March. The Business Forum in Istanbul is one of the highlights of the Polish president Bronislaw Komorowski’s official visit to Turkey that takes place on 5-6 March.

South Africa – Poland Economic Forum Ministry of Economy, PAIiIZ and Trade & Investment South Africa invite you to participate in the Poland - South Africa Economic Forum. The meeting will be held on 14 March at 2 pm, in Hyatt Hotel in Warsaw. Poland - South Africa Economic Forum coincides with the official visit of the vice-president of South Africa to Poland, Mr. Kgalema Motlanthe. After the official part of the meeting, B2B talks for Polish and South African companies will be arranged. The application is available at http://www. paiz.gov.pl/ Polska-RPA by 12 March.

17

www.bizpoland.pl

FDI News New jobs in Euro-Park Mielec Euro-Park Mielec has issue its third new permit this year. It was received by foil producer, Effect Plus. The investor will purchase comprehensively equipped production lines to manufacture innovative stretch foil.

The total value of investment reaches PLN 35 million.

Cities and Regions Rankings show Poland top of charts Wroclaw in 2nd place, Katowice in 3rd and Poznan in 7th. In the FDI Strategy in Eastern Europe category, more than half of the Top 10 cities are in Poland: Katowice (1), Wroclaw (2), Poznan (3), Lodz (5), Lublin (8) and Krakow (10). In addition, Katowice, Wroclaw and Poznan were listed among the FDI’s best cities in the whole of Europe (respectively 2nd, 7th and 10th position). Among the Top 10 major cities in Europe in terms of business friendliness, Warsaw took 6th place in the list of all the major cities of the continent. Wroclaw obtained the same position in the large cities category. Wroclaw and Katowice were also listed in the general ranking, presenting the most attractive large cities in Europe (8th and 9th place respectively). In the Top 10 regions of Eastern Europe, Poland is represented by: Malopolska (5th), Slask (6th), Wielkopolska (8th) and Mazowsze (10th).

ArcelorMittal opens Polish rail production facility ArcelorMittal’s Dąbrowa Górnicza long rail installation in Poland – one of three in the world capable of producing 120m rails for the railway industry – was officially opened on 24 February by Poland’s deputy prime minister, Janusz Piechociński.

The opening of the new installation is timely as ArcelorMittal Europe has announced its selection by Deutsche Bahn to supply 129kt of rails to the German railway company in 2014, together with ArcelorMittal’s Gijón site in Spain.

Both parties also agreed an option to deliver a further 129,000 tonnes in 2015.

Manfred Van Vlierberghe, CEO of ArcelorMittal Poland, said that the production of long rails is a project of significant strategic importance for the company as many companies are planning major investment in rail infrastructure. “We are pleased that the opening of the installation

has taken place just days before the tenth anniversary of our presence in the Polish market. In the past decade, ArcelorMittal has invested more than US$1.6bn in the modernisation of its plants in Poland,” he said.

Augustine Kochuparampil, CEO for long products at ArcelorMittal Europe, said the company was very pleased to be working with Deutsche Bahn having just completed such a major investment in rail production facilities in Poland (enabling the company to produce 120m rails). The rails will support Deutsche Bahn’s network renewal and expansion programmes.

Dr. Bernd Striegel, head of procurement and sites at DB Netz AG said: “Deutsche Bahn invests extensively in its railway network every year. In 2014, we aim to renew more than 3,000km of rails, 2,350 track switches, more than two million railway n sleepers and about 4Mt of gravel.”

New Investments in Zator Economic Zone

18

Two companies Plastmot and Suneko will invest in ZEAZ. Together, both investors plan to spend nearly PLN 10m. Plastmot specialises in manufacturing of plastic components for automotive, horticulture, electronics and household sectors that are exported to Germany, France, Spain, China, US and Mexico.

Components made by Plastmot for the automotive sector will be used by such brands as BMW, Mercedes-Benz, Fiat, Peugeot, Porsche, Renault and Rolls-Royce.

The investor intends to create eight new jobs. Suneko produces intermediate metal parts for automotive manufacturers. The business will create 10 new jobs.

March 2014

www.bizpoland.pl

FDI News

Domino’s targets pizzastarved Poles “The joy of pizza is that bread, sauce and cheese works fundamentally everywhere.”

Domino’s Pizza CEO J Patrick Doyle has a simple explanation for his company’s success.

There are pizza places in many towns around the world, but not many have had as much success as Domino’s Pizza worldwide. And Domino’s success isn’t just about bread and cheese. Domino’s sold 61 million pizzas in Britain last year, because of its franchise business model.

Essentially, Domino’s uses other people’s capital to grow its business. In return for using the brand, the franchisee pays a royalty to Domino’s on his sales. When he starts up, he invests his own capital in opening a store. And on a daily basis he also buys his raw materials, pizza boxes and the rest from Domino’s. In return, he has the support of the brand behind him.

It’s a good arrangement. Domino’s gets royalties from franchisees, and in exchange, it maintains a strong brand. As the store system grows, so the advertising pot gets bigger and there is a virtuous circle.

The franchise model has worked here in the UK, so why not in Poland? DP Poland listed on AIM in London in 2010 as the owner of the rights to Domino’s in Poland.

It has a great product and the business model has been successful before. Can it repeat the trick?

Royalties in, advertising spending out Domino’s is one of those rare companies that’s achieved strong growth, while at the same time throwing off cash, in the form of dividends and share buybacks. The secret ingredient is the franchise model.

2014 March

Domino’s owns very few of its stores, the vast majority are run by franchisees. But the company doesn’t simply sit back and watch the franchise royalties roll in. It has to hold up its end of the bargain. The big cost is the advertising and marketing support that Dominos provides centrally.

In the UK, this has included expensive sponsorship of The Simpsons on TV to raise general brand awareness in addition to more focused support such as developing smartphone apps for ordering.

To work, this plan needs scale It’s easy to see the appeal of the Polish market after Domino’s great success in the UK. The founders of DPP also have experience in developing consumer food outlets in Poland. They rolled out the Aim-listed Coffeeheaven chain in Poland, which was ultimately bought out by Costa Coffee.

Unfortunately, it hasn’t worked out as hoped. The shares rose to over 100p in the first months after the initial public offering (IPO), but after further fund raisings, they currently trade around 15p. What’s gone wrong?

There’s a minimum efficient scale needed before you get the accelerating profits and cash generation that Domino’s UK has enjoyed. This takes time and effort to achieve – bear in mind the UK business was trading for over a dozen years before it floated.

Once you do get the system beyond a certain size, you cover central costs and are able to spend increasing amounts on advertising the brand. This makes you an attractive proposition to potential franchisees looking to start a business.

DPP was a start-up with overly ambitious targets. Selling Domino’s pizzas is also harder in an economy where the brand

isn’t well-known, and where people have less discretionary spending than the UK and less of a convenience food habit.

This can work – but it needs time The stores’ original break-even target of six months has been adjusted to 18 months. Store maturity is now seen as taking three years. Even then, profits will only be about half the level of a good UK outlet.

The store format has been improved and the first franchised store has now opened.

It looks like the emphasis will be on proving this format over the next year or so before expanding the chain. The board has been significantly strengthened with Chris Moore coming on as a non-exec. He was CEO of Domino’s UK, so his experience should be invaluable. He’s also been joined by Gerry Ford, chairman of the Caffè Nero chain.

The bottom line is that it’s going to take time. Early investors no doubt looked greedily at the UK profits and didn’t think hard enough about the scale of the challenges.

The UK business itself had plenty of growing pains before it became a cash machine.

So DPP is one to keep on the watch list. But it’s also one that needs some patience. n

19

www.bizpoland.pl

FDI News Armenian Minister of Economy visits Poland Representatives of the Armenian Ministry of Economy visited Poland in mid-February, under the European Commission Technical Assistance and Information Exchange Programme (TAIEX). The main aim of the meeting lead by PAIiIZ was to acquaint Armenian partners with the Polish system of Special Economic Zones as well as to present local instruments of support for investments. They discussed the possibilities of cooperation between both institutions. Armenian delegates also visited Krakow, where they met representatives of regional technoparks: Krakow Technology Park, LifeScience cluster and Jagiellonian Centre of Innovation.

Polish Aviation companies welcome to Angola

20

Angola – one of the fastest developing African countries - encourages Polish companies to take part in its aviation investment projects. By 2016, the Angolan government plans to spend over 1,6m on that purpose.

Currently, Angola is carrying a huge project of civil aviation infrastructure development. Ultimately, 30 airports, including 16 completely new ones, will operate throughout the country. The construction of the international airport in Luanda - the capital of Angola - is expected to be finished by 2016. It will be the most modern airport in this part of Africa that will provide services for 15 million passengers every year.

Additionally, the government has begun the process of modernization of the 4 already existing international airports: Aeroporto 4 de Fevereiro in Luanda, Nova Lisboa in Huambo, Aerpoporto da Catumbela in Benguela and Welwitschia Miriabilis in Namibe. The project is managed by state-owned corporation ENANA. Implementation of the new investments requires the development of new express roads in the country. Over the next three years, Angola is going to build about 10,000 km of such roads. According to Domingos Culolo, Angola’s ambassador to Poland, this is an additional opportunity for Polish companies.

Indian companies looking at Poland The Polish Chamber of Commerce held an Economic Forum in early February as a part of the 60th anniversary celebrations of Polish-Indian relationships. During the meeting, representatives of Polish and Indian governments discussed issues related to mutual economic and diplomatic cooperation. It was also an opportunity for bilateral talks between business leaders from both countries. Under-secretary of state in the Ministry of Foreign Affairs, Katarzyna Kacperczyk, opened the discussion, underlining the great potential of the two countries. However, she argued, this capacity is still not fully utilised. She pointed out that India is seen in Poland as

Katarzyna Kacperczyk podsekretarzem stanu w MSZ

an important economic partner, especially in terms of the R&D sector.

Secretary of state in the Ministry of Economics, Jerzy Pietrewicz talked about the growing interest of Poland among renowned Indian companies, mainly from the private sector. “Indian firms locate business service centres in Poland. In addition, companies representing IT, new technologies and packaging industries have already started doing business here”, he said. He also added that also Polish companies are increasingly interested in cooperation with the Indian market. “We have much to offer to Indian partners in such areas as defence, pharma or energy sectors. We also count on the cooperation in the aerospace sector”, said the deputy minister. Aleksander Libera, advisor to the board for Polish investments abroad from PAIiIZ, listed the sectors in which Poland is able to invite Indian investments. Among them there are: BPO, IT, R&D and chemical industries. Mr Libera stressed the strategic role of Indian business counterpart. To prove it, he reminded the audience of the number of completed investment projects from India between 2011-2013. According to PAIiIZ, the total value of the projects reached PLN 72.3m and the total number of expected new jobs is 1,245. Four new investments in Legnica SEZ Four companies: Viessmann Technika Grzewcza, Uzin, C+P Meble and S&L, have received permits to conduct business in Legnica SEZ. Between them, the companies will invest nearly PLN 13 million.

Viessmann Technika Grzewcza is planning to launch production of cables for condensing wall-mounted boilers. The company will increase its workforce by 10 new employees. German company Uzin will invest PLN 1m to develop the product range and increase the volume of sales. The new investment of C+P Meble has been estimated at PLN 8m. The company plans to expand the production hall and increase employment to 123 workers. The Legnica plant produces sheet steel furniture to be delivered to the Tropical Island aqua park in Germany as well as to foreign factories. S&L will spend PLN 4m and employ five new people to offer supply services, including road freight transport, selected land support services, storage, as well as financial audit and accounting services. n

March 2014

www.bizpoland.pl

FDI News

Azerbaijanis in Poland Azerbaijan and Poland discussed prospects for development of bilateral relations in the future. Azerbaijan’s Deputy Foreign Minister Khalaf Khalafov and Deputy Economy and Industry Minister Niyazi Safarov paid a visit to Poland on February 12-14.

The Azerbaijani officials, whose visit was aimed at participation in the intergovernmental political consultations, met with Poland’s Deputy Prime Minister Janusz Piechociński, Economy Minister Katarzyna Pełczyńska-Nałęcz, Deputy Economy Minister Andrzej Dycha, and other officials.

The two sides discussed regional developments, cooperation in political, economic and humanitarian spheres, as well as prospects for the development of bilateral relations. Preparations for the next meeting of the joint intergovernmental commission in Baku were also discussed.

Addressing the event, Janusz Piechociński said Poland sees broad prospects for economic cooperation with Azerbaijan. “Dynamic development of Azerbaijan is a good indicator for the development of a favorable trade and investment cooperation between the two countries,” he said.

Niyazi Safarov, in turn, said Azerbaijan is planning to diversify its economy and to

develop the non-oil sector of the economy.

“Thus, we urge the Polish entrepreneurs to get acquainted with our suggestions in the chemical industry, agriculture and the construction industry,” he added.

Polish Embassy and the Economy Ministry organized a round table, which brought together representatives of more than 40 companies from various industries. The meeting held a presentation on Azerbaijan prepared

by Azerbaijan Export and Investment Promotion Foundation (AZPROMO). The meeting was also attended by Azerbaijan’s Extraordinary and Plenipotentiary Ambassador to Poland Hasan Hasanov.

Detailed proposals on trade and investment will be discussed in the next meeting of the Polish-Azerbaijani intergovernmental commission on economic cooperation scheduled for April 2014. Poland reconized the independence of Azerbaijan in December 1991. Diplomatic relations between the two countries were established in February 1992.

The Azerbaijani State Statistics Committee has said the trade turnover between Azerbaijan and Poland amounted to $24 million in the first six months of 2013.

Azerbaijan mainly exports agricultural and chemical products to Poland.

JWT acquires Lemon Sky WPP announced that its wholly owned operating company JWT, the global marketing communications agency, has agreed to acquire Lemon Sky, a leading creative digital marketing company in Poland. Founded in 2000 and employing around 70 people in Warsaw and Wroclaw, the agency specialises in producing a broad range of digital advertising and campaign services. Clients include Nestle, Orange, Tesco and Leroy Merlin. Lemon Sky’s unaudited revenues for the year ended December 31, 2013 were EUR 2.7 million. Following the deal, Lemon Sky will join JWT Warsaw to create one integrated communications agency for Poland. This investment continues WPP’s strategy of developing its services in important markets and sectors and strengthening its capabilities in digital media. In Poland, the group (including associates) generates revenues of around US$150 million and employs over 1,000 people. Across the Central and Eastern European markets collectively, WPP companies generate revenues of around US$700 million and n employ over 6,000 people.

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 March

21

www.bizpoland.pl

FDI News New investments in Krakow Zone Krakow SEZ has issued three new permits to conduct business. They were received by Can-Pack Food and Industrial Packaging, Can-Pack Metal Closures and SGL Lindner.

Together, all companies plan to invest PLN 112.5m and create 132 new jobs. Can-Pack Food, Industrial Packaging as well as CanPack Metal Closures operate under CanPack Group, the company producing metal packaging from over 20 years. Can-Pack Metal Closures plans to implement the production of crown crocks and the easyopen ends called “CP-CAP “. Moreover, the company will invest in the process of automating, receiving, packaging and storage of finished products. SGL Lindner is a joint venture company of Lindner and SGL Carbon. Under the new projects, both companies have been cooperated with the Academy of Mining and Metallurgy in Krakow. SGL Lindner plans to build a new manufacturing plant in Nowy Sacz where production of expanded graphite for cooling and heating systems will be implemented. The value of investment has been estimated at the level of PLN 40m.

Investor plans to hire at least 70 new employers. Starachowice SEZ expands Starachowice SEZ is growing by 31 hectares. On 25 February, the government

issued new regulations which changes the SEZ borders. Due to the increase of SSEZ and acquiring new investments, over 1,000 new jobs may be created. The expected value of the incoming investments has been estimated at the level of PLN 233 million.

New plots incorporated to Starachowice SEZ include areas of Konskie and Pulawy and municipalities of Kielce and Polaniec.

The incoming investments in the expanded zone not only should help to create new jobs in the SEZ area, but also will increase employment in zone’s surroundings. The governmental regulation has been implemented to increase the capabilities of SEZ in terms of investment development as well as to strengthen the competitiveness of Polish economy and the employment policy.

New investors in Lodz SEZ Twelve companies have received permits to do business in the Lodz SEZ. Together, they plan to invest over PLN 184 million and create 241 new jobs. Permits has been received by Elfa Pharm, BSH Sprzet Gospodarstwa Domowego, Wirthwein Polska, Quick-Mix, Poprawa Producent Opakowa, Tekturowych, Thermica, Sponcel, Weidenhammer Polska, VPK Packaging, Star Fitness, Huta Szkla Anewal, and Hapam Poland.

For some companies this is the next permit in Lodz SEZ. In a newly purchased plant in Chociw, Elfa Pharm will produce cosmetics and sanitary- hygienics.

Cost of the investment is PLN 8 million.

The company will employ at least 30 new employees. Thermica will spend of PLN 2.1m to build a plant to produce styrofoam boards and chemistry for real estate market. The company will hire at least 15 new employees. Sponcel will run a plant producing cellulose sponge for household products making. In Kutno subzone, Weidenhammer Polska will build a plant producing pasteboard packaging. The company will spend at least PLN 25m and employ more than 31 new employees.

Cardboard packaging is also the specialty of VPK Packaging. The company will invest PLN 58.8m and employ 30 new members of staff. Star Fitness, specialising in fitness facilities production, will invest at least PLN 8m in this are of production and hire over 20 employees. Huta Szkla Anewal will produce jars, candles and decorative glassware. Hapam Poland, a manufacturer of high voltage disconnections, intends to expand its factory as well as purchase new technological lines and equipment. For that purpose, the inn vestor will pay at least PLN 5m.

CEE Shared Services and Outsourcing Awards Gala

EE

O utsourc

i

ng

ed

Ser vices 22

r

A

w

and Sha

ards • C

5th February 2015, Intercontinental Hotel, Warsaw

www.CEEOutsourcingAwards.com March 2014

www.bizpoland.pl

City News

Kraków Kraków to host global travel conference Meeting Professionals International will hold its annual conference in Krakow on 1-3 February 2015, at the ICE Congress Centre, which is currently being built and slated to open in October 2014.

“We look forward to holding EMEC in Krakow for the first time next year,” said Pierre Fernandez, senior director of European Operations at MPI. “The historic city is centrally located within Europe and will be an excellent location for our annual European conference, which offers premier industry education and features distinguished presenters from the region.”

MPI’s partners for EMEC 2015 include the Poland Convention Bureau Polish Tourist Organization, the Ministry of Sport and Tourism of the Republic of Poland, ICE Krakow Congress Centre, Krakow Convention Bureau, and MPI Poland Club.

Around 300 event professionals were in Istanbul in mid-February for the EMEC 2014 event.

Łódź Slovenia’s Adria Airway is heading to Łódź Slovenia’s Adria Airways will launch flights from Munich to Łódź, as the Slovenian carrier continues to expand its business outside of its country’s borders. Flights to Łódź will operate up to six times per week with the service to be inaugurated on March 30. Tickets will be put on sale in early March. It will be the first time Adria will operate scheduled flights to Łódź, its second destination in Poland as the national carrier will launch services from Ljubljana to Warsaw on April 1.

Adria’s latest choice of destination continues to fuel discussion it will be feeding the network of its Star Alliance partner Lufthansa yet again. There are currently no flights between Łódź and Germany. In addition to Ryanair operating flights to three destinations out of the city, there are no other airlines flying into Łódź. On April 2 Adria will launch services from Tirana to Frankfurt, providing transit passengers to Lufthansa. The flights complement Adria’s existing services out of Pristina to both Frankfurt and Munich, as well as Ljubljana.

2014 March

Kraków Central Station goes underground Poland’s Deputy Prime Minister, Elżbieta Bieńkowska, has opened the newly-refurbished Kraków central station – Poland’s first underground railway interchange. The ceremony on February 14 marked the end of a 130 million zł project to relocate the existing station’s concourse underground,

Last year Adria announced it would open a base at Verona Villafranca Airport in Italy.

The Slovenian carrier will initially feed the bases of airlines owned by the Lufthansa Group with flights to Vienna (Austrian), Zurich (Swiss International Air Lines) and Brussels (Brussels Airlines). The airline has been awarded rights to operate routes from Verona which have been previously dropped by Italian airline Air Dolomiti, which is owned by Lufthansa. Adria also discussed the possibility of opening a base in Klagenfurt in Austria this summer. Łódź is the latest destination in the Slovenian carrier’s major network expansion this summer which will see it launch flights from Ljubljana to Prague, Warsaw and Kiev in addition to the Tirana - Frankfurt service.

Łódź railway station reworked by robot Polish concrete specialist Konkret is using two Brokk demolition robots on what is currently the single largest infrastructure project in Poland, the construction of a new transport hub and the redevelopment of Lodz city centre. The two robots are working on the redevelopment of Lodz Fabryczna railway station where the larger Brokk 260 is being used to remove concrete foundations and diaphragm wall, while the

connecting it with the city’s tram and bus networks.

Kraków central station is now spread across four floors, with the ticket hall and tram platforms now located beneath the main line platforms. The project has been made possible through EU funding and is one of 96 station redevelopment and modernisation projects delivered by operator n PKP since 2010.

smaller 160, equipped with a bucket, is being used to remove rubble. The project will see the complete redevelopment of more than 90 hectares of Lodz city centre at a cost of €500 million.

Mr Konrad Klimkowski, president of Konkret, said of use of the Brokks: “In this case the timesaving, efficient Brokk method is much appreciated. Overall we also value the safety aspect. It is quite a challenge to convince the Polish customers that it is so much safer to use a demolition robot. But the attitude is slowly but surely changing. At Konkret we long ago realised that hand-held equipment is very inefficient and costly.”

Today the Warsaw-based Konkret employs some 50 people working with different demolition techniques. It was established in 2006 and today operates a Brokk fleet of breakers, drum cutters and conn crete crushers.

23

www.bizpoland.pl

City News

Szczecin Huge investments in Szczecin trams Two contractors are bidding for the business to modernize the tramways on streets in Szczecin. A total of 296 tramlines will be reconstructed.

Bidders include: 1. Consortium Track - Kar - SSON Warsaw - Z.U.E. SA Cracow - Strabag Pruszków that offered a bid of 115 million pln.

2. Energopol Szczecin, which submitted an offer of 80 million pln.

Currently, the city is evaluating the bids, and according to the specifications, the contractor will have 9 months to complete all work once the contract is signed.

Reconstruction of the railway tracks between the right and the left banks of Szczecin will significantly improve the functioning of public transport between the two parts of the city and together with the currently constructed route Szczecin Fast Tram will be attractive both in terms of travel time and comfort. The project will be implemented under the project “Construction and reconstruction of tracks in Szczecin” financed under the EU’s Operational Programme Infrastructure and Environment. The value of the project amounts to 273 million pln, of which the EU grant is nearly 50% - at 131 million pln.

North Sea - Baltic Corridor Study conducted for the European Commission The Proximare consortium led by PanBaltic Law Firm TRINITI (Estonia) together with Malla Paajanen Consulting (Finland), Norton Rose Fulbright LLP (UK), IPG Infrastruktur- und Projektentwicklungsgesellschaft mbH (Germany) and Goudappel Coffeng BV (Netherlands) has been commissioned by the Directorate-General for Mobility and Transport of the European Commission (DG-MOVE) with carrying out a study on the North Sea-Baltic Core Network Corridor.

24

After the framework for the new TransEuropean Transport Network (TEN-T) came into force on 1st January, 2014, the European Commission signed contracts with several external consultants to provide analyses and technical assistance to draft work plans for the TEN-T Core Network Corridors.

Based on an increased budget for the TEN-T in the years 2014-2020 totalling EUR 26,3 billion, a new transport network will be developed with nine corridors forming the “Core Network” laying the foundation for a truly European transport network across 28 Member States.

The 3200 km long North-Sea Baltic Corridor will connect the Baltic ports of Helsinki/Tallinn with the North Sea ports of Bremerhaven, Amsterdam, Rotterdam and Antwerp as well as the inland port of Brussels. It starts at the modem harbours on the Gulf of Finland of Helsinki (Vuosaari) and Tallinn (Muuga) passing south through the three Baltic States and North Eastern Poland to Warsaw. From there it follows the traditional East-West corridor to Lodz, Poznan and Berlin continuing to the ports on the North Sea coast and Brussels.

The North-Sea-Baltic Corridor crosses eight Member States and will have branches: to Ventspils in Latvia and another to Klaipeda and Vilnius in Lithuania. The Corridor will for the first time provide modern transport links between Finland, the three Baltic States and Poland, Germany and the countries of the Single Market to the West.

The contracts were signed as a result of open procurement procedures and the consultants will carry out their work during the next 12 months by supplying detailed descriptions of each corridor, identifying the relevant stakeholders and assist DGMOVE in establishing a Corridor Forum.

The consultants will have to produce corridor work plans, to be submitted by the European Coordinators to the Member States for approval by the end of this year.

Information on Proximare Consortium partners: TRINITI is a Pan-Baltic commercial law firm which along with its cross-border practice groups and a combined team of 50 people serves clients in the capitals of Estonia, Latvia and Lithuania. TRINITI is regularly advising clients in projects relating to transport, infrastructure and logistics: completing the Rail Baltic Joint Venture Study for the governments of Estonia Latvia and Lithuania in March 2013; drafting legislative acts required for the development of Riga International Airport; representing a major Lithuanian

road construction company in a tender for a PPP project for the Palanga bypass , and continued advice for the re-structuring of the national airline Estonian Air. Malla Paajanen Consulting specializes in the planning, management and implementation of major international projects since 1999. The consultancy is involved in fund-raising, project design, and management of major international projects in the fields of transport and logistics, tourism, investment promotion, talent attraction and business education.

Goudappel Coffeng - is the biggest (approximately 260 employees) and the oldest (founded in 1963) company for mobility planning in the Netherlands. The company has offices in Amsterdam, The Hague, Eindhoven, Leeuwarden, Deventer and Mechelen (Belgium). The Goudappel Group is fully owned by its employees. The firm’s activities are centred in three main lines of work: advisory services, software solutions and process outsourcing. Goudappel Coffeng has thorough experience and knowledge in data collection, data analyzing, and transport modelling. The company also has knowledge of the European TransTools transport model which can help in analyzing the use of transport systems and can deliver the information needed for defining the bottlenecks for all modalities.

This will also be very helpful regarding the activities for the TENtec information system which will be one of the defined tasks.

IPG Potsdam - IPG Infrastruktur- und Projektentwicklungsgesellschaft mbH services focus on a broad range of infrastructure and transport development: ranging from the reconstruction of railway stations via the revitalization and conversion of industrial contaminated areas up to the development of modern logistics center and freight villages. Based on numerous project developments IPG disposes of welldeveloped networks and cooperation with many important institutions like ministries, banks, research institutions and partners from the transport industry.

In addition to the consortium Partners the Proximare Consortium enjoys the support of seven Sub-Contractors and the following Associate Partners: • City of Helsinki • Port of Helsinki • Port of Hamburg • City of Berlin • City of Kaunas, • Corridor2, EUREGIO • Aalto University School of Business, Centre for Markets in Transition • LogisticsNet Berlin-Brandenburg • Brandenburg Economic Development Board (ZAB) • VDV Association of German Transport Companies • Deutsche GVZ-Gesellschaft (DGG)

March 2014

www.bizpoland.pl “These are very important studies to evaluate the accuracy of the long-prepared investment plans of the EU before major financing will be committed to European infrastructure“, said Tõnis Tamme, partner of TRINITI Estonia adding: “We are extremely proud of the fact our

City News international partners in the Proximare consortium entrusted the experience of TRINITI to act as lead, as it is a great opportunity to implement our know-how gained from previous large transport and infrastructure projects. The North Sea – Baltic Corridor improves dramatically

the accessibility of Finland and the Baltic States as it connects us strategically to the logistic hubs of Central Europe and Europe’s three largest ports Rotterdam, Hamburg and Antwerp. This is a huge business opportunity for all concerned.” n

realistic, taking into account the fact that the airport in Gdansk is not crowded and is just 25 km away. In such a situation, no private operator would have accepted to invest on the same terms.

Given the fact that the airport in Gdansk effectively supports the whole region, using only less than 60 percent of its capacity, the Commission concluded that the aid to the airport in Gdynia is incompatible with the common EU state aid rules for the aviation sector.

Public funding of the Airport Gdynia Kosakowo would lead to an undue economic advantage over the airport in Gdansk.

In order to remove this unfair advantage and remedy the distortion of competition caused by the aid, the airport Gdynia Kosakowo must pay 91.7 million pln. The recovery of the aid granted unlawfully is necessary to ensure a level playing field in the single market of the EU.

Currently, airport operations are primarily of a commercial nature, and the individual ports compete with each other for traffic.

In the past ten years, many former military airfields were converted to civilian airports. This process accelerated with the emergence of low-cost airlines.

Just 20 years ago, incumbent airlines carried more than 65 percent of all passengers, while the low-cost airlines sold just 1.5 % of all tickets. By 2011, however, the share of low-cost airlines exceeded 42.4%, above incumbents 42.2%. In 2012, this trend is still maintained (44.8 % for cheap airlines and 42.4 % for incumbent carriers). A large number of regional airports in some regions of the EU has led to substantial surplus aviation infrastructure capacity relative to demand from passengers and airline needs.

The content of the decision on the airport in Gdynia would not change if the new guidelines , the Commission intends to adopt in effect now .. The non-confidential version of the decision will be made available under the case number SA.35388 in the State aid register on the DG Competition once any confidentiality issues . List of new state aid decisions on the internet and published in the Official Journal are listed in the weekly bulletin online on State aid. n

Trójmiasto Gdynia air port subsidies violate European Commission rules – must repay 100 million zł Brussels has concluded that financial support to transform the Gdynia airport from military into civilian was granted contrary to EU rules. The decision ends more than half-year investigation, which started because Brussels doubted the legitimacy of the whole enterprise. EU experts stressed that the airport in Gdynia - Kosakowo is just 25 kilometers from the existing airport in Gdańsk, which is far from fully exploited.

The EU also questioned the business plans and found estimates of revenues and air traffic in Gdynia to be based on unrealistic assumptions, and that both Gdańsk and Gdynia will suffer. The European Commission has already said that aid can not be transferred to investments that do not have economic justification and are not part of the European development strategy. One of the arguments for a negative decision on Gdynia was that Gdańsk is already on the list of key airports in the European transport network.

In September 2012, Poland notified the Commission of the recapitalization by the local authorities of the Gdynia-Kosakowo company responsible for the construction and operation of the airport Gdynia Kosakowo. The new airport, which is based on the existing infrastructure of the military airfield, was to be the second airport in the Pomeranian province and mainly serve general aviation traffic, charters and low cost airlines. This contribution was to cover capital investment costs and operating expenses of the airport in the initial period.

In line with EU state aid rules, public investment in commercial enterprises can be regarded as constituting State aid, if it is effected on terms which a private investor would have accepted in market conditions.

During the investigation, the Commission concluded , however, that forecasts of air traffic and revenues presented in the business plan of Gdynia airport were not

2014 March

Airport operations are commercial in nature Over the past 20 years the functioning of airports in the EU has undergone a profound change. Earlier airports were treated primarily as infrastructure, whose task was to ensure the accessibility of regions and to enable their territorial development.

25

www.bizpoland.pl

City News

Poznań

begin this spring for scheduled delivery in 2016.

Eiffage team signs to build Polish mega mall

POLARIS Laboratories opens new laboratory in Poznan

Eiffage and Apsys have signed a €140m construction contract for one of Europe’s largest shopping centres. Eiffage Construction and Apsys subsidiary Centrum Lacina will build the Lacina shopping centre in Poznan. The centre will stand on the right bank of the Warta River, a ten-minute walk from the old city centre. The complex will have a gross leasable area of around 100,000m2, comprising more than 300 shops and 3,300 parking places. Twelve cranes will be needed to build the shopping centre’s stone-faced walls and glass facades.

The work will be carried out by Eiffage Construction’s subsidiary, Eiffage Polska Budownictwo, over a period of 26 months, including 15 months for building the shell.

The company will also create the square in front of the main entrance. Work will

POLARIS Laboratories continues to grow its global footprint as it establishes a new laboratory to serve European customers in Poznan. “Our continued expansion into the global marketplace is exciting,” CEO Bryan Debshaw said. “Opening the laboratory in Poznan allows us to grow in the same markets our customers are growing in so we can provide better service to them.”

Poland was chosen for the laboratory location due to its Central European location, educated workforce and market potential. The city of Poznan was selected based on its location, shipping capabilities and available laboratory space. POLARIS Laboratories has acquired space at the Poznan Science and Technology Park, which is designed to help businesses work with students.

Wrocław Test Center for Capgemini in Wrocław

26

A Nearshore Testing Center (NTC) has been established together by Capgemini and Sogeti, both part of the Capgemini Group, in Wroclaw. It is specifically targeted at the needs of the German market and provides software testing offerings such as test automation and mobile testing. Of particular importance with regard to the German market, the new centre will work on testings based on systems of SAP AG. The new test center is built on a pre-existing German testing team of nearshore center Capgemini in Wroclaw, which is now also expanding. The expansion of the nearshore test center is a response to the strong demand for testing services in the German market.

The expert teams in Poland will work with onshore and offshore project teams

in India, which is consistent with the approach of Capgemini to provide services through a global network. Maarten Galesloot , CEO of Sogeti in Germany: “The new NTC is the perfect addition to our offshore test centers in India. Thanks to our best-in-class test solutions and the excellent training of colleagues, we are addressing targeted customers who want a German-language component in the provision of services.”

Capgemini employs more than 5000 people in Poland, in its Centers for IT and Business Process Outsourcing services exist in Wroclaw, Kraków, Katowice, and Opole. The Polish market is served primarily from the office in Warsaw.

Hewlett-Packard expands Global Business Center Hewlett-Packard, based in Wroclaw, is recruiting specialists in the field of finance, particularly financial analysts, and individuals with

“Our award-winning HORIZON application is being well-received in the European market,” Debshaw said. “Our customers value seeing the condition of their fluid analysis program from a 10,000-foot view before diving in close to review the details that form the bigger picture. No one else offers such a complete package of proven impact, uptime and savings in Europe.”

European Territory Sales Manager Gwyn Simmonds joined POLARIS Laboratories to assist existing European customers and seek out new customers who will send their samples to the Poznan facility.

POLARIS Laboratories is an independent fluid analysis company headquartered in Indianapolis, Indiana. The company analyzes oil, fuel, coolant and water-based fluids to provide maintenance recommendations that reduce maintenance costs, improve equipment reliability and minimize unscheduled downtime for companies in the transportation, oil and gas, construction, mining and power generation indusn tries.

experience in accounting and management accounting. Ultimately, employment in the Centre of Financial Excellence will increase by 25 percent.

The Wroclaw center of HP offers a broad cross-section of positions, starting with the financial analyst and ending in managerial positions and directorships. As emphasized by representatives from HP, the Wroclaw Centre of Financial Excellence is developing very intensively.

“We offer experience staff in all financial sectors, including the Department of Audit, Treasury and Tax. These are the roles that are crucial to the decisions taken by our clients”, said Dominika Świerczyńska, director of the Centre of Excellence in the Global Financial Business Centre for Hewlett -Packard .

The Financial Centre of Excellence (CoE) is an organizational unit of Wroclaw HP Global Business Center, which has been n based in Wroclaw since 2008.

March 2014

www.bizpoland.pl

Katowice Fitch affirms Katowice’s rating at AFitch Ratings has affirmed the city of Katowice’s Long-term foreign and local currency Issuer Default Ratings (IDR) at ‘A-’. Fitch has also affirmed the city’s National Long-term rating at ‘AA+(pol)’.

The Outlooks are Stable.

Key Rating Drivers:The affirmation reflects Katowice’s continued good operating performance, albeit weaker than in previous years, but still in line with Fitch’s expectations and the ratings. The ratings take into account Katowice’s high liquidity buffer, which supports debt servicing, and its wealthy economy and tax base. The ratings also factor in the city’s projected moderate direct and indirect debt in 2014-2015. Fitch expects the city’s operating performance to continue its weakening trend in 20142015, although it should remain above the city’s rating peers and provide strong debt coverage. Fitch estimates the city’s operating margin in this period will hover around 9%-10% (2013: 10.7% according to the city’s estimate). This would correspond on average to PLN140m of projected operating balance, which should 2.5x cover debt service (including debt repayment and interest).

In Fitch’s view, opex growth will continue to exceed operating revenue growth.

This will result from the city’s policy, which aims at providing a high level of services to the city’s inhabitants and investment providers. The city’s liquidity buffer will be partially absorbed by capex in 2014-2015, but should remain strong, about PLN200m (PLN390m in 2013), covering the city’s annual debt service, which is projected at about PLN50m on average.

Following investments, Katowice’s debt could peak at about PLN700m at end-2014 (end-2013: PLN600m), but will still account for a moderate 45% of current revenue (43% in 2013). The city has already secured all its debt financing needs for 2014-2015 investments, with PLN105m available under the contracted long-term loans. The direct debt to current balance ratio should remain healthy, at about six years (four years in 2013), which will be well below the city’s average debt maturity (of about 19 years). Rating Sensitivities: An upgrade of the sovereign rating, accompanied by the continued good operating performance, with reducing pressure on debt-funded capex, could trigger positive rating action.

A downgrade could result from a significant deterioration of the city’s debt coverage above nine years due to a sustained

2014 March

City News deterioration in the operating margin or a significant rise in the city’s net direct risk.

CEB Resources To Buy Up To 49% Stake In Carbon Investment CEB Resources PLC said it plans to acquire up to a 49% stake in Carbon Investment Soo, which controls the the rights to the advanced, high grade Mariola Thermal Coal Project in southern Poland.

The firm said the investment in Carbon Investment will be used to fast-track the development of Mariola which is a substantial advanced thermal coal deposit near Katowice.

CEB said for the year ended December 31, 2013 Carbon Investments made a loss of USD 25,000.

The acquisition will be structured as three separate tranches of investment with the future tranches of investment at the election of CEB. The first part comprises an initial stake of 10% of the shares of Carbon Investment for GBP 200,000 in cash plus 20 million CEB shares payable within 30 days of signing the deal. At the closing price of 0.715 pence per CEB share on February 17, this equates to a total consideration of around GBP 343,000.

Within six months of signing the deal, at the election of CEB a further 10% stake in Carbon Investment, totalling 20% for GBP 400,000 in cash plus a further 20 million CEB shares.

Within 12 months of signing the agreement, at the election of CEB a further 5% stake in Carbon Investment, totalling 25%, for GB 500,000 in cash plus those CEB shares to make Carbon Investment a 19.9% shareholder in CEB.

Thereafter, CEB has the right to increase its shareholding in Carbon Investment to 49% on commercial terms to be agreed between the parties.

The maximum total consideration that may be payable by the company under the agreement, including the market value of any CEB shares which form part of the consideration, is capped at GBP 1.4 million.

CEB’s stock traded at 0.700 pence, down 2% on the news.

Silesian company will explore for coal Minister of the Environment issued a license for the diagnosis of coal deposits in the western part of Malopolska.

Previously, the company received a license, which will include the search for deposits in Jaworzna. The company - Hydrotech Carbonia from Rybnik - received a license for the diagnosis of coal deposits in Krzeszowic, Trzebina and La Verna. In December 2013, a similar authorization was issued to Katowice Carbon Investment company, which will explore the bed “Siersza 2” covering 13 km sq and extending into the municipalities of Trzebinia and Jaworzno. After the research work is carried out, the investor will be able to apply for a license to extract coal from the area. “There are more and more hopes and opportunities for the rebirth of coal mining in the area of our community” says the mayor of Trzebina Stanislaw Szczurek.

According to a study performed in 2011 at the request of the municipality Trzebinia by researchers at the Krakow branch of the Polish Academy of Sciences, in the region of Trzebina only lies under the earth about n 227 million tons of coal.

27

www.bizpoland.pl

City News

Lublin Coal hopeful Prairie Downs Metals has started work on the environmental-impact assessment (EIA) at its Lublin coal project. Under Polish law, the EIA had to be completed to provide the government with sufficient information to award an environmental consent decision, which is a pre-requisite for the granting of a mining licence.

The EIA would include a wide range of environmental monitoring programmes, field surveys, ecosystem sensitivity assessments, socioeconomic surveys and a detailed community and stakeholder engagement plan. The assessment would run in parallel with Prairie Downs’ ongoing drilling and mine permitting at Lublin, with the company hoping to complete a scoping study during the first half of the year.

mayor of Lublin, and special Italian dishes were prepared.

Some travelers were going skiing. “ Ultimately, I go to Switzerland, so from Milan I go there by car. I am delighted with this new flight, because so far I had to go to the airport in Warsaw”, said Jarosław Urban, a Lublin entrepreneur.

According to Lublin airport authorities, the connection is primarily for business customers, with flights to benefit employees of AgustaWestland, whose Italian headquarters in Milan is located right next to the airport, as well as PZL Swidnik. Nicola Bianco , Vice President of PZL Swidnik: “We expect

that the employees of the company will occupy several seats in each of the planes”.

But the connection to Milan will also benefit other entrepreneurs. “The connection to Italy will make my life much easier”, says Rafal Stachura, vice president of Agromarina of Kulczyn.

Planes on this route are expected to run three times a week. “We want to have shortrange flights regionally and internationally, including to Wroclaw and towards the east”, says Krzysztof Zuk President of Lublin.

It is also expected that soon the LublinRome will be started. Flights to Milan cost n of about 300 zł one way.

Lublin Airport launches Milan flight About 50 people flew away on the inaugural flight from the Lublin Airport to Milan.

For the first passengers departing from Lublin to Milan, VIP guests included the

March 19-20 2014 Warsaw, Poland

The most important summit of Polish retail & FMCG industry!

The Poland & CEE Retail Summit is the right place to be, indeed!

28

www.retail-conferences.com/en

March 2014

www.bizpoland.pl

Chambers of Commerce News

Spain Minister speaks on foreign investment On the 17th February 2014 the PolishSpanish Chamber of Commerce organized a business lunch meeting with the Vicepresident of the Republic of Poland and Minister of Economy, Mr. Janusz Piechociński, and the Member Companies.

The main topics of discussion were the foreign investment activities in the Polish market, the bilateral commercial relationships of the country and the current economic situation of Europe.

Piechocinski pointed out that Spain is the 14th export market and the 12th import market for Poland. Likewise, he said that Spanish companies find Poland an atractive and interesting country to create a new business in, the Polish market is an appealing invest and entrepreneur market.

In 2013 the Council of Ministers decided to extend the performance of the Special Economic Zones until 2016, which will ease the access to these areas given the moderate incorporation criteria. With this change the Ministry of Economy intends to aid significant investments from the economic standpoint.

Currently, Poland is, in the financial aspects, the major beneficary of the European, stated the Vicepresident. In the years 2014-2020 these funds will be an important asset to increase the competitiveness and innovation of the businesses.

Finally, Mr. Piechocinski mentioned the Renewable Energy Sources bill project. The measure was accepted by the Fix Commitee of the Council of Minsters on the 6th of February 2014, and should soon be passed on to the Government session and then to n the Parliament.

Netherlands Business drinks in Poznan Our representation in the Wielkopolski region made a brilliant start of the year 2014 with a businessdrink on 21 January that was held in hotel Mercure in Poznan.

The event was attended by 60 people which showed that more and more members of the NPCC are finding their way to the businessdrinks in Poznan.

Participants listened to speeches of Tomasz Kayser, deputy Mayor of the city

2014 March

of Poznan, Ambassador Bekkers of the Netherlands Embassy in Warsaw and Chairman Geert Embrechts of the NPCC. We celebrated the presence of many eminent guests. Among them was Ewald Raben, world entrepreneur of the year 2012.

During the evening, outgoing chairman Theo Tiegelaar handed over his position to Christine Colijn, the new Chairperson of the Wielkopolski department of the NPCC, presented the plans and the calendar for the year 2013 in Poznan. Christine Colijn: “We have started the new year with a new and enthusiastic board. The high turnout

is an great support for our chapter and motivates us even more to present an outstanding line-up of events in this region.”

Switzerland Next event is a Breakfast Meeting: Criminal law audit – diagnostics of company management in terms of criminal lin ability, set for 18 March.

29

www.bizpoland.pl

Chambers of Commerce News

Belgium Hotel Bristol, Warsaw; 25.03.2014, at 6:30 pm.

The Belgian Business Chamber has the pleasure to invite you to the Belgian Business Mixer in Warsaw. The meeting will offer a good opportunity to the BBC members, Belgians and other friends of the Chamber to broaden their professional network and spend their evening in a very friendly atmosphere.

Chamber of Commerce, Netherlands Polish Chamber of Commerce. KPMG together with Belgian Business Chamber, the Netherlands - Polish Chamber of Commerce, the Spanish-Polish Chamber of Commerce have the pleasure to invite you to a seminar entitled: “Current opportunities of financing and new state aid rules for 2014-2020”. The speaker - Mr Bartosz Iglewski - Tax Manager in KPMG Poland, has over 7 year experience in the scope of state aid. The seminar is free of charge.

Please register at bb(at)belgium.pl before 4th March (the main organizer has the right to refuse registration for this event).

Free seminar “Current opportunities of financing and new state aid rules for 2014-2020.”

Supporting SME’s on South East Asia Markets: a Belgian know-how useful for Poland

KPMG headquarters, ul Chłodna 51, Warsaw, 16th floor; 11.03.2014, 9.00-11.00 Organizers: KPMG together with the Belgian Business Chamber, Spanish-Polish

PAIIZ Headquarters, ul. Bagatela 12; 24.04.2014, from 9.00 am. to 2.30 pm.

Organisers: Brussels Invest and Export in co-operation with the BBC, the Agency

Belgian Business Mixer in Warsaw

India India to showcase engineering prowess in Poland

30

Seeking newer pastures for the engineering exports in the wake of headwinds in the traditional markets, EEPC India will take a 100-member strong engineering manufacturers to participate in the ITM, Poland - a high tech Innovation and Technology show to be held June 4-6. With the support from the Commerce Ministry, EEPC INDIA will be organising India Show at the ITM, Poland (Innovations, Technology, Machines), 2014 which will have participation of over 1000 global exhibitors from 30 countries.

While addressing a Seminar on “Doing Business with Poland”, EEPC INDIA Chairman Mr Anupam Shah said that “at the India Show at Poznan, engineering manufacturers will showcase our hi-tech capabilities, especially in the areas of energy and transport sectors of railways, shipping and aviation- which are of special interest to the Polish economy”.

The Seminar was held on the occasion of the visit of Ms Katarzyna Kacperczyk, Under Secretary of State, Ministry of Foreign Affairs of the Republic of Poland along with a high level delegation including HE Mr Piotr Klodkowski, Ambassador of Poland in India and Mr Andrzej Arendarski, President of the Polish Chamber of Commerce. The occasion was also graced by Mr Dammu Ravi, Jt Secretary, Dept of Commerce, Ministry of Commerce & Industry, Govt of India.

During the proceedings, Ms Kacperczyk underscored the need for increasing the mutual business engagement between India and Poland. The bilateral trade has been less than USD two billion, very much below the potential. “We can surely increase our exports of engineering goods, especially relating to the railways, shipping etc, the areas where Poland has shown quite a bit of strength, “ Mr Shah said.

He said at the request of the the EEPC India (formerly known as the Engineering Export Promotion Council) the organizing authorities of ITM Poland 2014 have already agreed to invite India to the prestigious international innovation show as a Partner country.

The India Show within the ITM, Poland, is an initiative of Department of Commerce, to promote India’s image and to provide a platform for Indian engineering industry to showcase its strength and capabilities in both emerging and developed markets. “ The show is expected to build awareness about India’s economic strengths and project its attractiveness as a preferred investment destination, as also to enhance our economic engagements with Poland”.

While the Polish economy is one of the key economies of the European Union, the bilateral engagement with India is quite low. In the fiscal year 2012-13, India’s total exports to Poland were $810 million, accounting for just 0.27 per cent of our total exports. Likewise, imports were $863 million, accounting for 0. 18 per cent of India’s imports.

PARP, Embassy of Malaysia, Embassy of Indonesia.

A seminar organised by Brussels Invest and Export in co-operation with the BBC , and the Agency PARP as well as the Embassies of Malaysia and Indonesia, at the Agency PAIIZ Headquarters, ul. Bagatela 12; 9.0014.30. At this occasion, for the first time Poland and Belgium (through the Agency PARP and BIE) will compare the financial and non-financial instruments available for supporting the exporting potential of their SME’s outside the European Union.

The case-study of South East Asia will be detailed thanks to Belgian Lawyers (including a BBC member) working in this region, who will share their knowledge of South East Asia and explain to Polish companies the fantastic (and neglected) opportunities as well as the specific hurdles of this region.

The success stories of 2 Polish companies in South East Asian Countries will conclude the seminar before a networking lunch. n

Since joining the EU in Poland has modernised its transport networks, for which the Indian engineering sector can contribn ute significantly.

Portugal Annual General Meeting elects Board On the 6th March, the Polish-Portuguese Chamber of Commerce is organizing the Annual General Meeting. During the event, there will take place elections to the PPCC Management Board, presentation of the financial statement of the PPCC for 2013 and presentation of the PPCC Business Plan 2014. After the meeting, there will take place a reception on the occasion of the 6th Anniversary of the Polish-Portuguese Chamber of Commerce.

Erasmus On the 7th March 2014, the PolishPortuguese Chamber of Commerce is organizing the 6th edition of the Welcome Dinner for the Portuguese Erasmus Students in Poland. The dinner gives students the opportunity to meet representatives of the Portuguese business community in Poland and Embassy of Portugal in Warsaw. The event is organized on yearly basis and always counts with around one n hundred Portuguese students.

March 2014

www.bizpoland.pl

United Kingdom PolskiBus connects Wrocław and Kraków every hour PolskiBus.com announced that from the 1st of March it will increase the number of connections on the route Wrocław-Kraków as part of the P14 line. Courses between the capital of Dolny Śląsk (Lower Silesia) and the capital of Małopolska (Little Poland) will be performed every hour.

Passengers on the route Wrocław-Kraków receive free refreshments Piotr Bezulski, Managing Director of PolskiBus.com comments: We are increasing the frequency of courses on the P14 line between Wrocław and Kraków in response to the needs of our customers who frequently travel on this route. These are very attractive cities, both in terms of tourism, business and trade. PolskiBus.com offers the residents of Wrocław and Kraków even more convenient connections to reach quickly and comfortably their universities, home, shopping and a variety of cultural events in the city.

PolskiBus.com’s passengers can travel comfortably and safely on board of a luxury, double-deck Van Hool Astromega coaches equipped with reclining, leather seats, free Wi-Fi, air conditioning and toilet. In addition, on the way from Wrocław

Scandinavia Norwegian investor in Gdansk Norwegian investor Powel AS opened its first office in Poland. The new branch will support the development of software for a growing number of customers. Powel AS creates key business software and provides services associated with it for energy companies, local governments and contractors in the engineering sector. The new office is located in the Gdańsk Science and Technology Park, which is an important center for ICT in the region. Software created in Gdansk will serve to optimize the electricity generated in hydroelectric power plants, solar and wind power, and to manage smart grids, water and sewage, as well as supporting the work of companies involved in civil engineering.

Powel AS has offices in Norway, Sweden , Denmark, Switzerland, Turkey and Poland.

2014 March

Chambers of Commerce News to Kraków each passenger receives free refreshments: hot and cold drinks, sweet buns/croissants, cookies and water.

Norton Rose advises on landmark EUR 900 mln Polish telecom highyield bond offering Global legal practice Norton Rose Fulbright has advised J.P. Morgan and Bank of America Merill Lynch as global coordinators on EUR 900 million high-yield bond offering of P4 Sp. z o.o. (Polish Mobile Network Operator MNO operating under the ”PLAY” brand). The funds raised were used for refinancing PLAY’s existing funding arrangements and distribution to PLAY’s shareholders. The debt offering comprised EUR 600 million fixed rate senior secured notes due in 2019, PLN 130 million (EUR 30 million) floating rate senior secured notes due in 2019 and EUR 270 million fixed rate senior notes due in 2019.

The transaction also involved a PLN 400 million revolving credit facility granted to PLAY by Bank Zachodni WBK S.A. (Santander Group) and Alior Bank.

The transaction is one of the largest ever EUR denominated high-yield bond offerings made by a company based in Central and Eastern Europe.

Grzegorz Dyczkowski, partner in the Warsaw office of Norton Rose Fulbright, commented: “The issuance of high-yield bonds by PLAY is one of the most significant transactions in the Polish and European debt securities market in recent

Fortum and the City of Plock signed letter for construction of power plants Fortum Power and Heat Poland and the city of Plock signed a letter of intent - a declaration to take action towards building by Fortum power plant in Plock - adapted to the use of clean fuels, including municipal waste. The pre- investment cost is estimated at about 140-150 million euros. Fortum is considering construction of a modern power plant equipped multi-fuelled boiler. In addition, the company plans to launch the installation of heat recovery from the exhaust, which further increases the efficiency of the plant.

“The project fits perfectly into Fortum’s strategy of sustainable development, which involves the construction of high- power plant based on a variety of fuels available locally says Mikael Lemström, President of Fortum Power and Heat Poland. “The planned power plant will be a modern, environmentally friendly heat source for the inhabitants of Plock”, he added.

years. Polish companies are with increasing frequency seeking financing from the international capital markets in addition to or in place of bank financing. We are very pleased that we have, in cooperation with our clients, PLAY Group and other advisers, brought this transaction to a close within an extremely short timeframe and at a price very advantageous to PLAY. This is one of a number of complex debt financing transactions we have advised on in the Technology and Innovation sector in Poland and follows the financing of the acquisition of Polkomtel by entities controlled by Zygmunt Solorz-Żak in 2011 which combined financing arrangements in the form of bank credit facilities, the issuance of high-yield bonds and payment-in-kind, and the partial refinancing of Polkomtel’s debt in 2013, which Norton Rose Fulbright advised the arrangers on.”

The Warsaw team was led by Grzegorz Dyczkowski and Piotr Strawa, assisted by Tomasz Rogalski, Marta Kawecka, Krzysztof Gorzelak, Agnieszka Braciszewska, Joanna Braciszewska-Szarapa, Jan Grochowicz, Michał Błaszkiewicz, Adrian Koziński, Konrad Leszko, Daniel Popek and Aneta Janecka. Latham & Watkins acted as English and New York legal counsel to the global coordinators. PLAY was advised by White & Case. Mandated lead arrangers and agent under the revolving credit facility were advised by CMS Cameron McKenna. Citibank, N.A., London Branch acted as security agent n and was advised by Reed Smith.

The multifuel power plant in Plock is to supply heat to the district heating network and collaborate with the existing, local energy producer. Fortum has started preparatory work on which the investment decision is made. Average time of implementation of similar projects is 2-3 years after the final decision.

“The cooperation with Fortum will improve the energy security of the city and will improve municipal waste management system. We see the possibilities of creating new alternatives sources of energy, but also fully co-operating with the existing local energy producer”, says Andrzej Nowakowski, President of Plock.

The next step, after signing a letter of intent, will be to develop the most optimal solutions: technological and legal implementation of the new investment. It is necessary to include feasibility study of the project and the appointment of a suitable location - away from the center but within the administrative boundaries of Plock. n

31

www.bizpoland.pl

Chambers of Commerce News

United States Minister of Finance at AmCham’s meeting

32

At the beginning of February, the American Chamber of Commerce in Poland organized a conference, whose special guest was the Minister of Finance, Mateusz Szczurek.

During the meeting, the Minister summarized actions undertaken by the department which aimed at reducing the impact of crisis and described biggest challenges of Polish economy.

According to the Minister, one of the priorities is to introduce tax ordinance reforms and tightening up the system, which may unavoidable due to the increasing deficit. Foreign investments are an important factor in economic revival. Szczurek announced the way of disbursing public resources which will not supplant private enterprise.

“Polish businessmen seek for solutions to make Poland an attractive location for investments, not only for foreigners but also for their local partners”, said Tony Housh, a member of AmCham Board.

Guests expressed their conviction that standardization and strictness of tax system along with minimal state interference will significantly contribute to economic indexes improvement and encourage foreign entrepreneurs to locate their capital in Poland.

AmCham Wroclaw celebrates its 10th anniversary The AmCham Office in Wroclaw marked its 10th anniversary. On this occasion, the Office organized a meeting with business and politics representatives during which previous accomplishments as well as plans and chances for future were discussed. Special guests of the meeting were Stephen Mull, the Ambassador of the USA to Poland.

AmCham Wroclaw has been supporting the development of American investments in the region from the beginning, mediating between entrepreneurs and politicians, indicating preferable directions of change or growth. Nowadays, Lower Silesia is perceived as one of the most attractive locations for investment in Poland and American entrepreneurs are considered the most active business group apart from the EU. It is estimated that every fifth capital expenditure is located in our region, and almost 30% of companies registered in Wroclaw have foreign capital share.

According to our calculations, American firms have invested in Lower Silesia over 1,5 billion PLN and created – directly and indirectly- almost 50 thousand jobs. We are glad to say, that AmCham significantly contributed to the growth of the region – said Joanna Bensz, AmCham Wroclaw Office Director.

In order to provide entrepreneurs with the assistance tailored to their needs, AmCham Wroclaw regularly organizes business meetings during which guests may presents their apprehension or reservation concerning particular issues as well as postulate certain solutions. Thanks to the constant contact with the business environment, the Chamber is able to offer support on every level of an investment process.

The anniversary of working for the USEU economic relations improvement was also an opportunity to remind the TTIP agreement. AmCham Wroclaw involved in promoting the Partnership and benefits that will result from it as one of the firsts.

Members of the Chamber believe that the agreement is a great chance of development for Lower Silesia, and may lead to enrichment and profitable exchange of experience between entrepreneurs from the world.

AmCham organized the biggest TTIP conference in Europe The American Chamber of Commerce in Poland actively supports promotion of TTIP among Polish politics and business representatives. In order to present benefits of the Partnership, AmCham organized a conference in which 300 hundred people took part. Among invited guest were: Elena Bryan, Senior Trade Representative at the U.S. Mission to the European Union, Denis Redonnet, Head for Trade Strategy DG TRADE of the EU, , Stephen Mull, the U.S. Ambassador to Poland and Katarzyna Kacperczyk, Undesecretary of State at the Ministry of Foreign Affairs and.

TTIP is the biggest economic agreement in the world, which aims at elimination of custom duties and harmonization of procedures concerning trade exchange between the USA and the UE. Guests accordingly admitted that the Partnership creates great opportunities for both economics and a chance to increase the commerce income. Currently, the course of trade between States and the EU generates 2 billion dollars a day. Stephen Mull stated that the agreement will be of big significance on both sides of the Atlantic, creating new possibilities at such difficult time for the economy.

According to estimations, thanks to the agreement implementation, over 100

000 new job positions will be created and the trade proceeds, including third countries, will increase by around 340 billion EUR. Direct benefits from the Partnership implementation will be noticeable also in Poland. Katarzyna Kacperczyk, claims that TTIP will serve as an impetus for intensification of trade actions between Poland and the US. Our country is already the biggest receiver of American investments in Central Europe. Thanks to standardization of regulations and abolishment of trade barriers, Polish economy may gain even 120 billion dollars a year.

Preliminary analysis indicates that one of the main beneficiaries of the agreement will be small and medium entrepreneurs, for which it is impossible to match current complicated requirements and expensive procedures.

High customs duties, mutual non-recognition of certificates and complicated regulations prevent smaller companies from competing on the international market.

TTIP implementation will allow this sector to develop dynamically - said Joseph Wancer, AmCham Chairman of Directors Board.

Guests emphasized that negotiations concerning the agreement are a great challenge, due to the complexity of issues and the coverage of TTIP. Denis Redonnet noted however, that the work proceeds smoothly, as participants have similar goals. Negotiations are still in progress, but they are held in an open way, engaging all concerned parts, aiming at finding compromise in points of potential dispute. n

Ireland Enterprise Ireland / Irish Chamber of Commerce Saint Patrick’s Business Mixer Thursday, March 20, 2014; 6:00pm – 10:00pm; Warsaw Tortilla Factory Combine business with pleasure and celebrate Saint Patrick’s in an informal setting, with a classic Irish foods and drinks menu. This is an ideal way to say thank you to Polish customers and potential new customers by offering a little bit of Irish hospitality. Invitation only – please contact Agnieszka Michalska agnieszka. michalska@enterprise-ireland.com if you n would like to attend.

March 2014

CEE ENERGY AWARDS

CEE ENERGY AWARDS 2014

May 29th 2014, Warsaw, Poland, Hotel InterContinental www.ceeEnergyAwards.com

www.bizpoland.pl

Chambers of Commerce News

Germany

Meeting with the Speaker Province was a good opportunity to present their proposals, comments or questions on topics related to the support of the region in the new financial perspective for 2014-2020. After questions and comprehensive answers, it was time for the presentation of the Industrial Park Municipal Lizhensk, including the genesis of the park, the current state of real estate development, investment products as well as the further steps that need to be made in order to strengthen the importance of the park on the market. The Park has available 16 hectares of land for production and storage area of 2,000 m2 waiting for investors. n

Meeting with the Speaker of the Sub-Carpathian Region The possible use by local governments and entrepreneurs EU funds available under the new financial perspective 2014-2020 was the subject of the meeting with Marshal of Podkarpacki Wladyslaw Ortyl with local government and businesses in our region. The meeting, initiated by the District of Leżajsk, and councilor Stanislaus Bartnik took place in the Museum of Leżajsk.

Italy The Italian Chamber of Commerce and Industry in Poland (CCIIP) is opening two offices to support Italian companies directly in the most strategic regions. A new

office in Katowice will be headed by Pietro Vinci, lawyer owner at VINCI & VINCI Sp. z o.o. He will enhance CCIIP’s network by connecting Italian businessmen across the region. The next Italian Business Mixer outside Warsaw will take place in Katowice on the April 9th. It will be followed by

Italian Business Mixer in Poznan in May to inaugurate another office. It will be headed by Monika Urbaniak, lawyer owner at Kancelaria Radcy Prawnego dr Moniki Urbaniak. More information about these events will be available on the website: n www.cciip.pl

34

March 2014

www.bizpoland.pl

Events

BCC – Grand Gala of Polish Business Leaders For the twentieth time at the Teatr Wielki (Grand Theatre), the Business Center Club presented nominations and awards and its premier prize Golden Statuette of Polish Business Leader.

The Golden Statuette was awarde to Professor Kleiber, for his involvement in the development of the Polish economy and building bridges between the worlds of science and business, and to Herman Van Rompuy, for his contribution in solving the problems of the European Union, co-creation of the concept of European Monetary Union, and for giving new political impulses to the European Union and EU entrepreneurship.

The annual Social Solidarity Medals awarded to those involved socially in helping the needy, and to promote the idea of corporate social responsibility – went to Urszula Gocał, Joanna Szymana, Donata Krol and Stanislaw Szyszkowski.

Nearly 2,000 guests took part in this year’s Gala, with attendance from Poland’s top entrepreneurs, members of the government, parliamentarians, and diplomats.

Since 1991, the Business Centre Club has given out Golden Statuettes of Polish Business Leader to companies and their CEOs. During this year’s gala 41 companies received Diamonds, from a nomination list of 107 companies.

BiznesPolska.pl and BizPoland Magazine n were media partners of the event.

35

2014 March

Events

www.bizpoland.pl

Foundation for Corporate Responsibility celebrates annual dinner dance Over 400 Foundation members and friends filled the Grand Ballroom of the Warsaw Hilton Hotel in early February for the Foundation’s 11th Annual Dinner Dance, with the theme “Hollywood’s Best Music.”

The Foundation is an international network of corporate CEOs working in Poland to affect positive social change through targeted corporate philanthropy.

BiznesPolska.pl and BizPoland Magazine n were media partners of the event.

36

March 2014

www.bizpoland.pl

Events

CEE Retail Real Estate Awards

EuropaProperty’s 6th annual CEE Retail Real Estate Awards recognised leadership in retail real estate in CEE by awarding a broad spectrum of winners for their continued market success. The awards brought together some 450 top real estate professionals from the major retail market sectors in the CEE region and were selected by an international academy of jurors.

Property developer Mayland Real Estate shone the brightest on the evening picking up three awards. The company received high praise and recognition for their Riviera Shopping Centre, currently Poland’s largest retail development. The centre won the Extended/Refurbished Project of the Year as well as the coveted Overall Project of the Year award. Further emphasising their success in 2013 the jurors also voted Mayland the Developer of the Year.

The recently opened TriGranitdeveloped and managed Poznan City Center won one of the most prominent retail project prizes, Retail Project of the Year in the large category. Poznan City Center, which opened its gates on 25th October 2013, has proven to be a huge

2014 March

success – since its opening it has welcomed more than 5 million visitors.

ECE Projektmanagement collected two project awards. One for their Arkad 2 shopping center in Hungary, highlighting a possible upturn in the country’s fortunes and Maltepe Park in Turkey. The projects were awarded in the Turkey Shopping Center of the Year and Shopping Centre of the Year in the medium category.

Other projects awarded on the night included Plac Unii, Liebrecht & Wood’s popular office and retail development in Warsaw, which won Mixed-use Project of the Year, Neinver’s Factory Annopol in Warsaw for Factory Outlet Centre of the Year, Dekada Grojec in Grojec, Poland won Retail Park of the Year and Fashion House Warsaw was awarded Best Performing Factory Outlet Center of the Year.

Ten key retailers were awarded on the night. Overall Retailer of the Year went to Deichmann, which was recognised for their continued expansion and confidence in the CEE region throughout 2013 and the Newcomer of the Year award was received

by SinSay. Other major winners for the retailer specific awards included: Costa

by Coffeeheaven, Pure Jatomi Fitness, Saturn, Alma, Rossman, CCC, Kazar and Reserved.

BiznesPolska.pl and BizPoland Magazine n were media partners of the event.

37

Events

www.bizpoland.pl

Canada’s Winter Reception In conjunction with the Embassy of Canada, the PCCC held the Winter Reception at the Embassy on 4th February, with the theme Winter Olympic Games.

After a short introductory welcome by Ambassador Alexandra Bugailiskis, the guests were addressed by the Associate Deputy Minister of Foreign Affairs and Canada’s G8 Sherpa, Mr. Peter M. Boehm.

Mr. Boehm briefly covered issues including the new bilateral trade agreement, the Winter Olympic Games, and the bond between Canadian and Polish Governments, business and individuals.

Following Mr. Boehm’s presentation, Mr. Tomasz Lisiecki (President of the PCCC) thanked the sponsors of the event: Apotex, Bireta, Miedzi Copper, Perła and Vac Aero.

Tomasz also recognized new members to the PCCC including Citibank, Dentons, E&Y, Mielżyński Wine, Spirits and Specialties, Redknee, Sandoz and SNC Lavalin Polska.

About 120 guests attended the function and were treated to sumptuous food provided, once again, by “Why Thai” restaun rant.

38

March 2014

www.bizpoland.pl

Events

Gala of the French Chamber of Commerce On February 7, during the Gala organized at the Sofitel Warsaw Victoria hotel, the French Chamber of Commerce and Industry in Poland celebrated its 20th anniversary. More than 450 guests participated in the Gala, including the current and former presidents of the CCIFP, politicians and the presidents of the largest French investors. During the Gala guests could see two fashion shows of French designers - Gerard Darel and Tara Jarmon and a fashion show of the Polish designer Ewa Ciepielewska. The partners of the Gala were: Leroy Merlin, Pierre Fabre Dermo Cosmétiques, EDF, Mazars, SPB, Galéries Lafayette, Pernod Ricard Polska, Servier, AP Uniapol, Société Générale and Sofitel Warsaw Victoria. The partners of the fashion shows were: Desir Paris, Tara Jarmon, Gerard Darel, Ciepielewska Design, Badura and Sisley. BiznesPolska.pl and BizPoland Magazine were media partners of the event. n

39

2014 March

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.

We expect more than 100 exhibitors, grouped by “Country” and “Product”: • Foreign food and beverages producers seeking to expand in Poland • Specialty food producers and distributors seeking to grow in Poland • Beverages and the drinks sector will be also represented by wine producers, and specialty drinks. n Country pavilions: Spain | France | Italy | Germany | Holland | Latin America | US and Canada | etc. n Product pavilions: Specialty Foods | Cheeses | Meats | Chocolates and Sweets | Teas and Coffees | and Wines.

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