Polish market No. 11 218/2014 SPECIAL EDITION

PU B LISHED SIncE 199 6 No. 11 (218) /2014 :: www.polishmarket.com.pl

HERBERT

WIRTH pResIdenT of KGHM polsKa MIedź

sPEciAL EDiTion

PEARL PoLish Economy

of the

Pearls of the Polish

economy Gala nov. 7, 2014 Royal Castle Ballroom

12

th edition of

Pearls of thE economy

9

th edition of

Honorary

4

Pearls

th edition of

Photo: Marta Smolińska

Pearls of innovation

Honorary Patrons: Deputy Prime Minister and Minister of the Economy – Janusz Piechociński President of the Polish Academy of Sciences – Prof. Michał Kleiber Rector of the Warsaw School of Economics – Prof. Tomasz Szapiro Organizer – “Polish Market”

SPIS TREŚCI CONTENTS

5. Janusz Piechociński, deputy Prime Minister, Minister of the Economy 6. Prof. Michał Kleiber, president of the Polish Academy of Sciences 7. Prof. Tomasz Szapiro, Rector of the Warsaw School of Economics

28. Prof. Leszek Rafalski, president of the Main Council of the Research Institutes, member of the Progress award committee 29. Progress Pearls of Innovation 32. Honorary Pearls 42. Songs from heart to heart, Maciej Proliński

8. Methodology of the Pearls of the Polish Economy, Prof. Tomasz Kuszewski, Prof. Tomasz Szapiro 10. Pearls of the Polish Economy 17. A global company of the future, Herbert Wirth, president of KGHM Polska Miedź SA 20. Dynamically and successfully, Konrad Pokutycki, president of BSH Sprzęt Gospodarstwa Domowego

44. The Nobilatum 2014 46. Good service is the most important thing, Marcin Kręglicki,owner of prestigious restaurants 48. Success based on promotion, Janusz Rodziewicz, president of the Association of Polish Butchers and Meat Processors (SRWRP) 50. Polish Ecology grows in strength, Maciej Bartoń

22. Leader focused on clients’ needs, Łukasz Kalinowski, president of MetLife 24. Polish companies. Their way to increase R&D spending, Magdalena Burnat-Mikosz and Krzysztof Senger, Deloitte

Cover: Herbert Wirth Photos on issue: www.shutterstock.com

November /2014

Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o.

(RYNEK POLSKI Publishers Co. Ltd.) President: Krystyna Woźniak-Trzosek Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła Address: ul. Elektoralna 13, 00-137 Warszawa, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: info@polishmarket.com.pl

Managing Editor: Rita Schultz rita.schultz@polishmarket.com.pl Writers/Editors: Maciej Proliński, Jan Sosna, Sylwia Wesołowska- Betkier, Grażyna Śleszyńska, Janusz Korzeń, Jerzy Bojanowicz, Janusz Turakiewicz Contributors: Agnieszka Turakiewicz Graphic design: Agnieszka Andrzejczak-Charuba, Joanna Wiktoria Grabowska - Lili Projekt

Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl Marcin Haber m.haber@polishmarket.com.pl

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REGON 011915685, NIP 526-11-62-572 Published articles represent the authors’ personal views only. The Editor and Publisher disclaim any responsibility or liability for their contents. Unso licited material will not be returned. The editors reserve the right to edit the material for length and content. The editors accept no responsibility what soever for the content of advertising material.

Reproduction of any material from this magazine requires prior written permission from the Publisher.

special edition

From the publisher

and co-organizer of

the Pearls of the Polish Economy Gala For the 12th time the editors of “Polish Market” invite their guests to the hospitable interiors of Warsaw’s Royal Castle for the annual Pearls of the Polish Economy Gala. It is the most important event in Poland designed to promote the Polish economy, successful businesses and people from the world of culture and science.

As usual, the honorary patrons of the event are the deputy prime minister and minister of the economy, Janusz Piechociński, and the president of the Polish Academy of Sciences, Michał Kleiber. The third patron this year is the Warsaw School of Economic (SGH).

T

he findings of the annual Pearls of the Polish Economy ranking reflect the condition of Polish companies, their activity, efficiency and financial results. The ranking is compiled in conjunction with experts, who analyse the survey questionnaires returned by companies. It is divided into several parts: Large Pearls, made up of companies with annual revenues of between PLN100 million and PLN1 billion, Grand Pearls, Financial Institutions and Company Ratings, which we present in this issues.

The Pearls of the Polish Economy ranking is undoubtedly an objective barometer of the Polish economy. This year, it was prepared by the Decision Support and Analysis Unit at the Institute of Econometrics Warsaw School of Economics.

Economy and development have to go hand in hand with innovation. This is why for three years now we have granted our Pearls of Innovation Progress awards to innovative companies and projects. We run the competition together with the Main Council of the Research Institutes, which represents 116 research and development centres.

But Poland can be proud not only of efficiently operating businesses and innovative solutions. In promoting our country, “Polish Market” goes further and highlights outstanding scientists, artists and philanthropists. Nine years ago there emerged the idea to present also Honorary Pearls at the gala. “Polish Market” gives this award to the most outstanding personalities and institutions in the sphere of economy, culture, science, and for promoting social and patriotic values. Thanks to their achievements, experience, prestige and undisputable personal values, these individuals may be called ambassadors for the highest Polish values.

I hope you will get to know this year’s laureates with interest.

Krystyna Woźniak-Trzosek Editor-in-Chief President Rynek Polski Publishers Co. Ltd.

November 2014 polish market

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4 polish marketspecial edition 2014

atrons

onorary

To build the future of a competitive Europe and ensure a strong and lasting economic growth it is indispensable to create favourable conditions for the development of business.

special edition

Janusz Piechociński, Deputy Prime

I

Minister, Minister of the Economy

t gives me great pleasure to have an opportunity again to be an honorary patron of the Pearls of the Polish Economy rankings. The event honours the most efficient companies with annual revenues of at least PLN100 million.

Supporting enterprise is one of the key tasks of the Ministry of the Economy. We take numerous legislative initiatives to make it easier to run a business, strengthen the business environment and improve the economic situation of our entrepreneurs.

To build the future of a competitive Europe and ensure a strong and lasting economic growth it is indispensable to create favourable conditions for the development of business. We support entrepreneurs and thanks to our activities want to enhance the potential of firms for competing on the domestic and foreign markets.

I wish to thank the organizers of the Pearls of the Polish Economy rankings for appreciating the companies which stand out on the market in terms of growth, financial liquidity, profitability, sales and labour efficiency.

Congratulations to this year’s laureates. I wish you further success in the activity you conduct and satisfaction with the results you achieve. I am convinced that your hard work will be an example and inspiration for others. I also wish to express my respect for the winners of Honorary Pearls, which are granted to outstanding personalities in the sphere of economy, culture and science, and for • promoting social and patriotic values.

November 2014 polish market

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T

his year the Pearls of the Polish Economy ranking, a wellknown and highly valued initiative of the editors of “Polish Market,” is organized for the 12th time. It is a prestigious promotional undertaking, which has been improved over the years and occupies an important place not only in the programme of this monthly magazine, but also among national media initiatives aimed at promoting the Polish economy, science and culture.

It differs from other quite numerous rankings and polls organized in our country in terms of the methods used to select winners and the scale of the undertaking. This ranking is based on the creative and fruitful relationship of the financial and economic world with the scientific community. This is mainly because the tools used to position companies entering the competition and select the winners of honorary titles are scientific, which means the tools are the most coherent, objective and guarantee functionality, but also because the competition methodology is developed by highly prestigious scientific institutions – for many years by the Institute of Economics of the Polish Academy of Sciences and this year by the Warsaw School of Economics.

The methodology is based on analysis of indexes reflecting a company’s financial condition. Four aspects are taken into account: financial liquidity, business efficiency, profitability and debt. This choice of indicators makes it possible to analyse a company’s current situation (statistical analysis), assess its potential for growth in the near future (dynamic analysis), and analyse how the company uses the resources that are aviailable to it. The authors of the methodology have divided the numerous companies taking part in the ranking into groups representing the following sectors: agricultural and food sector; industrial sector based on raw materials; consumer industrial sector, financial sector and services.

Winners of the Large Pearls award are selected from among companies whose annual revenue is at least PLN100 million. Winners of the Grand Pearls award are selected from among companies which have generated more than PLN1 billion in annual revenue.

I regard it as a special value of the undertaking that it includes granting Honorary Pearls to outstanding personalities of public life, people devoted to cultural and scientific activity, and those committed to promoting social and patriotic values. This format of the ranking reflects its central idea the best: rewarding and promoting all activities that contribute to building a positive and full picture of our country’s contemporary life.

For many years, as president of the Polish Academy of Sciences, the biggest corporation of Polish researchers, I have had the honour to perform the duties of an honorary patron of the Pearls of the Polish Economy ranking. I have observed with satisfaction its growth, a rise in its prestige and rapid increase in the number of its participants. Another source of my satisfaction is the conviction that science, by providing tools, formulating criteria and classifying measures, makes it easier to organize the world and gives the quality of objectivity and reliability to all prestigious assessments introduced into public life.

6 polish marketspecial edition 2014

Honorary

Prof. Michał Kleiber, president of the Polish Academy of Sciences

This ranking is based onthe creative and fruitful relationship of the financial and economic world with the scientific community.

As a person representing the world of science, who at the same time takes an active part in public life and promotes the idea that scientists should carry out civic duties, I am proud that the Polish Academy of Sciences is an honorary patron of a competition with such a precise and universal format, which enables rewarding activities born from talent, imagination, ardent passion, • enterprise and persistent hard work.

patrons

special edition

E

Prof. Tomasz Szapiro, Rector of the warsaw school of economics

xperts are agreed – and this rarely happens with specialists that assessments of businesses should be multifaceted. They should take into account partial criteria and include various elements, like a company’s mission, international orientation, innovation and the needs of the region where it operates. The assessment also has to be transparent – it has to be understandable to its users and should enable them to make corrections on their own. To be able to make the corrections, the users have to know the assessment methodology so as to introduce their own preferences to individual assessment components.

However, there is less agreement when it comes to widely-held opinions about rankings, which is one of the assessment methods. There are seven persistent opinions, which I would call myths, about rankings. It is a myth that rankings are objective, have only one user, are simple or extremely complicated, do not cost anyone anything, are not a business to be done, and that the ranking is the end rather than beginning of a road.

A moment of thought is enough to realize that these opinions are myths, that they have an excessive tendency towards absolutizing.

A solution to the problem is rating - classifying companies according to how they meet some standards of decency or high professionalism. A rating can tell us that a group of companies which have been classified similarly achieves results which allow us to regard them, for example, as decent, highly professional or as champions in their field of activity. It is a race against excellence standards rather than against rival companies.

We are destined to rely on rankings and ratings. They will not replace us in making decisions. However, by pointing to leaders and their good practices, they significantly reduce the likelihood of a wrong decision being taken and help companies streamline their management and correct their strategies. They enable stakeholders to assess the activity of companies, objectivizing to some extent the assessments which give them access to some entitlements and funding.

Participation in evaluation processes brings many benefits to companies.

It is an image-building instrument, which influences demand. It is also an opportunity for getting an independent assessment according to the ranking’s criteria. Such an assessment, be it a rating or ranking, makes it possible to identify the areas of activity which require improvement, and some imperfections which the managers may not notice or fully appreciate in their daily work.

A ranking is also an important instrument for customers, who have to choose a product or service, and for whom it is often difficult to assess them.

In the case of leaders, companies which have a big advantage over others and are regarded as the best, no ranking is needed. But if a company is outside the leading group, then it has to improve its image or even create it. In this case, presence in rankings is enormously important as it makes it possible for the company to stand out and for the client to notice an attractive choice.

We live in a time of rankings. And the natural question is which rankings are the most important. Of course, the most important ones are those which are widely known, read and awaited. The criteria used by rankings differ, which means the rankings are not comparable. A company’s position differs depending on the ranking. Companies usually strongly emphasize the ranking in which they come out well. And they are interested in taking part only when the assessments resulting from the ranking’s criteria are useful for them and apply to such characteristics which the company is able to control and, by doing so, is able to improve its position in the ranking. A ranking is important if the number of companies taking part is large. Rankings which shape the opinion of a company’s prospective target group are also important.

What can a company do to move up and improve their position in rankings? It has to monitor and analyse the results of activities which have had an impact on its position in previous rankings and use it to guide its development strategy.

Are rankings good or bad, then? It depends on their method because the goal is always the same – provide information to stakeholders as a result of a factually correct process of collecting, processing, systematizing and communicating data about different companies. This is why the media and academic institutions are ideal partners for this task as they complement each other in processing data about companies and communicating the assessments. •

November 2014 polish market

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12

th edition of the Pearls of the Polish Economy

competition

Prof. Tomasz Kuszewski, Prof. Tomasz Szapiro

T

he Pearls of the Polish Economy competition is already 12 years old. Its goal is to identify companies with the highest growth and business efficiency figures. The goal defined in this way presents two main difficulties to an analyst. Firstly, it is necessary to compare companies operating in different sectors of the economy while remembering that different indicators have to be taken into account in individual sectors to determine a company’s growth and business efficiency. Secondly, even in the same economic sector, organizations have to be assessed in a different way depending on their size. This is why the Pearls of the Polish Economy competition is run on the basis of three types of

8 polish marketspecial edition 2014

questionnaire surveys: for banks, insurers and non-financial companies. Additionally, there are separate classifications for companies of different sizes and fields of activity. They lead to identifying Grand Pearls and Large Pearls.

In the 12th Pearls of the Polish Economy competition, two classifications have been made: Grand Pearls and Large Pearls.

To enter the qualification process in the Grand Pearls category a company has to have generated net revenue from sales and equivalent revenue of at least PLN1 billion in the previous fiscal year. And for a company to enter the qualification process in the Large Pearls category it has to have generated at least PLN100 million in net sales and equivalent revenue. The objective of the

special edition

competition is to determine whether a company, assessed according to its growth and business efficiency, can be included in the champion’s, professional, standard or promising class. To take part in the competition, companies had to express their intention to participate and had to submit their data for two successive years - 2012 and 2013. On the basis of these data, index values reflecting growth and efficiency were defined. The selected indexes are widely used in company assessments. Four interpretable quantities, used in assessing every company, were built by means of the indexes. The quantities were then called aggregate indexes. The scale A,B,C and D was built for the purpose of this assessment, with A chosen as the highest grade. The remaining grades – B, C and D - denoted successively less satisfactory values of indexes describing a company’s activity. The selection rule is best illustrated by means of an analogy with the choice of a new car from among a set of potentially considered models. Let us assume that the price, maximum speed, size of the boot and fuel consumption are the criteria used to assess the cars. If there was a car which would be the cheapest and at the same time would have the highest speed, biggest boot and lowest possible fuel consumption it would receive four grades A and would be assigned to the champion’s class. But with practical decision-making problems it is difficult to find a situation where the decision rule works in such an obvious and clear way and with easily assigned points.

The surveys for the 12th edition of the competition were designed to collect data for two successive years – 2012 and 2013.

On the basis of the data obtained, values were defined for efficiency indexes widely used in company assessments. Each index was divided into four groups to better interpret the results of the rating process. The companies’ operational efficiency, profitability, financial liquidity and debt were analysed. Additionally, from two to four indexes were defined for each group. The analysts took into consideration the fields of activity of individual companies. For example, one of the indexes defined for companies conducting production and service activity is growth in net revenue from sales and equivalent revenue, and for banks it is growth in net banking income. For companies from the nonfinancial sector business efficiency indexes were defined. They reflect growth in net revenue, labour productivity, productivity of fixed assets, return on sales, gross return on assets, return on equity, financial liquidity, cash in hand and at bank, overall debt and debt-service coverage ratio. After completing the process of assigning grades to each of the companies, we obtain the number of final ranking points and four grades for each company. A grade may be A, B, C or D. The Pearls of the Polish Economy rating is compiled on the basis of ranking points. The process leading to determining rating classes and then company rankings is composed of several successive steps. Firstly, the number of ranking points is determined for each company taking into account each of the efficiency indexes. The company for which the value of an index is the highest receives 100 points. Companies for which the values are lower receive proportionally a smaller number of points.

Secondly, the values of aggregate indexes for business efficiency, profitability, liquidity and debt are calculated and standardized. The values of aggregate indexes, which are positive numbers lower than 100, are added up to obtain the final values of ranking points.

12

The company rating is created on the basis of aggregate index values. Three threshold values are determined for each aggregate index, which enables assigning one of the grades - A, B, C or D – to each company depending on the value of the aggregate index in one of the analysed areas: business efficiency, profitability, liquidity and debt. For example, grade A is given when the value of the aggregate index for profitability is between the highest value and the first threshold; grade D is given when the value of the aggregate index is between the value of the third threshold and the lowest value of the index in a group of companies.

Each company belongs to one of the four rating classes: champion’s, professional, standard and promising. The champion’s class is made up of companies which have received at least three grades not lower than grade A. The professional class is made up of companies with at least three grades not lower than grade B. The standard class is made up of companies with at least three grades not lower than grade C. The remaining companies belong to the promising class. For example, a company which has received grades A, A, B, D belongs to the professional class.

The number of final ranking points is the basis for compiling the league tables of Grand Pearls and Large Pearls. The higher the number of points, the higher a company’s place on the list. • Decision Support and Analysis Division, Department of Applied Econometrics, Warsaw School of Economics

The objective of the competition is to determine whether a company, assessed according to its growth and business efficiency, can be included in the champion’s, professional, standard or promising class.

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Pearls of the Polish Economy No.

Name of company

Score

Grand Pearls 1

PGE POLSKA GRUPA ENERGETYCZNA S.A.

192

2

MIEJSKIE PRZEDSIĘBIORSTWO WODOCIĄGÓW I KANALIZACJI W M.ST. WARSZAWIE S.A.

118

3

TOTALIZATOR SPORTOWY SP. Z O.O.

113

4

LPP SA

95

5

MONDI ŚWIECIE S.A.

95

6

PROVIDENT POLSKA S.A.

90

7

3M

85

8

BUDIMEX S.A.

85

9

BRENNTAG POLSKA SP. Z O.O.

83

10

CNH INDUSTRIAL POLSKA SP. Z O. O.

82

11

FAMUR S.A.

82

12

GRUPA KAPITAŁOWA CCC S.A .

81

13

ACTION SPÓŁKA AKCYJNA

79

14

KGHM POLSKA MIEDŹ S.A.

79

15

POLSKIE SIECI ELEKTROENERGETYCZNE S.A.

79

16

LUBELSKI WĘGIEL BOGDANKA S.A.

76

17

CYFROWY POLSAT S.A.

75

18

SITECH SP. Z O.O.

75

19

GRUPA KAPITAŁOWA AB S.A.

71

20

SYNTHOS S.A.

69

21

FAURECIA WAŁBRZYCH S.A.

68

22

P4 SP. ZO.O.

68

23

BSH SPRZĘT GOSPODARSTWA DOMOWEGO SP. Z O.O.

66

24

ENERGA S.A.

66

25

SPÓŁDZIELNIA MLECZARSKA MLEKPOL

66

26

GRUPA MLEKOVITA

65

27

GRUPA POLSKIE SKŁADY BUDOWLANE S.A.

64

28

PELION S.A. - GRUPA KAPITAŁOWA

64

29

GK PCC ROKITA

63

30

GRUPA KAPITAŁOWA SPECJAŁ

63

31

FIAT AUTO POLAND S.A

61

32

OSADKOWSKI S.A.

61

33

TAURON POLSKA ENERGIA S.A.

58

34

PKP CARGO SA

55

35

GRUPA AZOTY

54

36

POLSKI KONCERN NAFTOWY ORLEN S.A.

54

37

GRUPA KAPITAŁOWA LOTOS

50

38

TVN S.A.

40

Large Pearls 1

GRUPA GPEC

201

2

PETRAX SP. Z O.O.

180

3

AC S.A.

145

4

ZARZĄD MORSKIEGO PORTU GDYNIA S.A.

123

5

ADECCO POLAND SP. Z O. O.

110

6

NOVOL SP. Z O.O.

105

7

FAURECIA GORZÓW S.A.

104

8

PRZEDSIĘBIORSTWO EKSPLOATACJI RUROCIĄGÓW NAFTOWYCH PRZYJAŹŃ S.A.

102

9

POLSKA WYTWÓRNIA PAPIERÓW WARTOŚCIOWYCH S.A.

97

10

FESTO SP. Z O.O.

95

11

ZAKŁADY AUTOMATYKI KOMBUD S.A.

92

12

SBS SP. Z O.O.

91

13

FAURECIA LEGNICA S.A.

90

14

RAMB SP. Z O. O.

90

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No.

Name of company

Score

15

WAWEL S.A.

90

16

METRO WARSZAWSKIE SP Z O. O.

89

17

ECHO INVESTMENT SA

88

18

DPD POLSKA

87

19

RADPOL S.A.

78

20

EURO-TRADE SP. Z O.O. SPÓŁKA KOMANDYTOWA

77

21

PROMAG S.A.

76

22

GRUPA KAPITAŁOWA LEASINGTEAM

74

23

TRAMWAJE WARSZAWSKIE SP. Z O.O

74

24

SPOŁEM POWSZECHNA SPÓŁDZIELNIA SPOŻYWCÓW

73

25

GRUPA ALUMETAL

73

26

ALUPROF

71

27

ATM SA

70

28

PHU AGRO-AS Z.BEDNARSKI & A.SAJDUTKA SP.J

70

29

SZYNAKA MEBLE SP. Z O. O.

69

30

KARMAR S.A.

69

31

MIEJSKIE PRZEDSIĘBIORSTWO WODOCIĄGÓW I KANALIZACJI S.A. W KRAKOWIE

69

32

CONBELTS BYTOM S.A.

68

33

ENERGOINSTAL S.A.

67

34

REGIS SP. Z O.O.

67

35

ATAL S.A.

66

36

PRZEDSIĘBIORSTWO HANDLOWE A-T S.A.

66

37

FABRYKA FARB I LAKIERÓW ŚNIEŻKA SA

65

38

GRUPA KAPITAŁOWA PROCHEM S.A.

65

39

HOCHTIEF POLSKA S.A.

65

40

COMARCH S.A.

64

41

PRZEDSIĘBIORSTWO BUDOWY KOPALŃ PEBEKA S.A.

63

42

LUVENA S.A.

62

43

MOSTOSTAL PUŁAWY

62

44

ALSTAL GRUPA BUDOWLANA SP. Z O.O. SP. K.

61

45

GK PCC EXOL

61

46

GRUPA INTEGER.PL SA

61

47

JAS-FBG S.A.

61

48

INFOVIDE-MATRIX S.A.

60

49

MIEJSKIE ZAKŁADY AUTOBUSOWE SP. Z O.O.

60

50

CEZ GROUP W POLSCE

59

51

NTT SYSTEM S.A.

59

52

PRZEDSIĘBIORSTWO WIELOBRANŻOWE EBUD -PRZEMYSŁÓWKA SP. Z O.O.

59

53

GRUPA KAPITAŁOWA DECORA

58

54

TENNECO AUTOMOTIVE POLSKA SP. Z O.O.

57

55

KOLEJE MAZOWIECKIE - KM SP. Z O.O.

56

56

DECORA S.A.

53

57

FAURECIA AUTOMOTIVE POLSKA S.A.

53

58

ERGIS S.A.

52

59

EUROPEJSKI FUNDUSZ LEASINGOWY SA

52

60

ZUE SA

49

61

GEFCO POLSKA SP. Z O. O.

46

62

ORZEŁ BIAŁY S.A.

38

Financial services 1

METLIFE TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE I REASEKURACJI S.A.

332

2

COMPENSA TU S.A. VIG

314

3

SANTANDER CONSUMER BANK S.A.

274

4

BANK BGŻ

271

5

BANK ZACHODNI WBK

263

6

BANK GOSPODARSTWA KRAJOWEGO

244

7

CREDIT AGRICOLE POLSKA, EUROPEJSKI FUNDUSZ LEASINGOWY, CREDIT AGRICOLE CORPORATE & INVESTMENT BANK

242

8

POWSZECHNA KASA OSZCZĘDNOŚCI BANK POLSKI

237

9

COMPENSA TU NA ŻYCIE S.A. VIG

231

10

BANK POLSKA KASA OPIEKI SA

225

11

ALIOR BANK

205

12

BANK POCZTOWY S.A.

177

12 polish marketspecial edition 2014

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November 2014  polish market

13

No.

Name of company

Rating class

Production and services – rating 1

GRUPA GPEC

champion’s

2

PGE POLSKA GRUPA ENERGETYCZNA SA

champion’s

3

ZARZĄD MORSKIEGO PORTU GDYNIA SA

champion’s

4

3M

professional

5

PETRAX SP. Z O.O.

professional

6

AC S.A.

professional

7

MIEJSKIE PRZEDSIĘBIORSTWO WODOCIĄGÓW I KANALIZACJI W M.ST. WARSZAWIE S.A.

professional

8

TOTALIZATOR SPORTOWY SP. Z O.O.

professional

9

NOVOL SP. Z O.O.

professional

10

FAURECIA GORZÓW S.A.

professional

11

PRZEDSIĘBIORSTWO EKSPLOATACJI RUROCIĄGÓW NAFTOWYCH PRZYJAŹŃ S.A.

professional

12

POLSKA WYTWÓRNIA PAPIERÓW WARTOŚCIOWYCH S.A.

professional

13

FESTO SP. Z O.O.

professional

14

LPP SA

professional

15

MONDI ŚWIECIE S.A.

professional

16

FAURECIA LEGNICA S.A.

professional

17

WAWEL S.A.

professional

18

METRO WARSZAWSKIE SP Z O. O.

professional

19

DPD POLSKA

professional

20

BRENNTAG POLSKA SP. Z O.O.

professional

21

FAMUR SA

professional

22

KGHM POLSKA MIEDŹ S.A.

professional

23

POLSKIE SIECI ELEKTROENERGETYCZNE S.A.

professional

24

EURO-TRADE SP. Z O.O. SPÓŁKA KOMANDYTOWA

professional

25

LUBELSKI WĘGIEL BOGDANKA S.A.

professional

26

PROMAG S.A.

professional

27

CYFROWY POLSAT S.A.

professional

28

SPOŁEM POWSZECHNA SPÓŁDZIELNIA SPOŻYWCÓW

professional

29

GRUPA ALUMETAL

professional

30

ALUPROF

professional

31

ATM SA

professional

32

MIEJSKIE PRZEDSIĘBIORSTWO WODOCIĄGÓW I KANALIZACJI S.A. W KRAKOWIE

professional

33

SYNTHOS S.A.

professional

34

CONBELTS BYTOM S.A.

professional

35

FAURECIA WAŁBRZYCH S.A.

professional

36

SPÓŁDZIELNIA MLECZARSKA MLEKPOL

professional

37

GRUPA KAPITAŁOWA PROCHEM S.A.

professional

38

HOCHTIEF POLSKA S.A.

professional

39

COMARCH S.A.

professional

40

LUVENA SPÓŁKA AKCYJNA

professional

41

ALSTAL GRUPA BUDOWLANA SP. Z O.O. SP. K.

professional

42

GRUPA INTEGER.PL SA

professional

43

INFOVIDE-MATRIX S.A.

professional

44

CEZ GROUP W POLSCE

professional

45

TAURON POLSKA ENERGIA S.A.

professional

46

PKP CARGO SA

professional

47

GRUPA AZOTY

professional

48

ADECCO POLAND SP. Z O. O.

standard

49

ZAKŁADY AUTOMATYKI KOMBUD SA

standard

50

SBS SP. Z O.O.

standard

51

PROVIDENT POLSKA S.A.

standard

52

RAMB SP. Z O. O.

standard

53

ECHO INVESTMENT SA

standard

54

BUDIMEX SA

standard

55

CNH INDUSTRIAL POLSKA SP. Z O.O.

standard

56

GRUPA KAPITAŁOWA CCC SA

standard

57

ACTION SA

standard

58

RADPOL S.A.

standard

59

SITECH SP. Z O.O.

standard

14 polish marketspecial edition 2014

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COMPREHENSIVE LOGISTICS SOLUTIONS

25 years

*

There is much to boast about…

Transport Forwarding Warehousing Logistics Customs Service Co-Manufacturing Contract Manufacturing Steel Structures

* Since 1989

November 2014 polish market www.deltatrans.pl

15

No.

Name of company

Rating class

60

GRUPA KAPITAŁOWA LEASINGTEAM

standard

61

TRAMWAJE WARSZAWSKIE SP. Z O.O

standard

62

GRUPA KAPITAŁOWA AB SA

standard

63

PHU AGRO-AS Z.BEDNARSKI & A.SAJDUTKA SP.J

standard

64

SZYNAKA MEBLE SP. Z O. O.

standard

65

KARMAR S.A.

standard

66

P4 SP. Z O.O.

standard

67

ENERGOINSTAL SA

standard

68

REGIS SP. Z O.O.

standard

69

ATAL S.A.

standard

70

BSH SPRZĘT GOSPODARSTWA DOMOWEGO SP. Z O.O.

standard

71

ENERGA SA

standard

72

PRZEDSIĘBIORSTWO HANDLOWE A-T S.A.

standard

73

FABRYKA FARB I LAKIERÓW ŚNIEŻKA SA

standard

74

GRUPA MLEKOVITA

standard

75

GRUPA POLSKIE SKŁADY BUDOWLANE S.A.

standard

76

PELION S.A. - GRUPA KAPITAŁOWA

standard

77

GK PCC ROKITA

standard

78

GRUPA KAPITAŁOWA SPECJAŁ

standard

79

PRZEDSIĘBIORSTWO BUDOWY KOPALŃ PEBEKA S.A.

standard

80

MOSTOSTAL PUŁAWY

standard

81

FIAT AUTO POLAND S.A.

standard

82

GK PCC EXOL

standard

83

JAS-FBG S.A.

standard

84

OSADKOWSKI S.A.

standard

85

MIEJSKIE ZAKŁADY AUTOBUSOWE SP. Z O.O.

standard

86

NTT SYSTEM S.A.

standard

87

PRZEDSIĘBIORSTWO WIELOBRANŻOWE EBUD-PRZEMYSŁÓWKA SP. Z O.O.

standard

88

GRUPA KAPITAŁOWA DECORA

standard

89

TENNECO AUTOMOTIVE POLSKA SP. Z O.O.

standard

90

KOLEJE MAZOWIECKIE - KM SP. Z O.O.

standard

91

POLSKI KONCERN NAFTOWY ORLEN S.A.

standard

92

DECORA S.A.

standard

93

FAURECIA AUTOMOTIVE POLSKA S.A.

standard

94

ERGIS S.A.

standard

95

EUROPEJSKI FUNDUSZ LEASINGOWY SA

standard

96

GRUPA KAPITAŁOWA LOTOS

standard

97

ZUE SA

standard

98

GEFCO POLSKA SP. Z O. O.

standard

99

TVN S.A.

standard

100

ORZEŁ BIAŁY S.A.

standard

Pearl for a Polish global company

T

he company has 50 years of experience on the Polish market.

Over these years it grew from a single mine to become a global producer of copper, silver and gold. KGHM is Poland’s first global company. It operates on four continents. Thanks to the acquisition of the Canadian company Quadra FNX, KGHM has joined the first league of global players. KGHM International is a brand name recognizable across the world.

•

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A global company of the future

Herbert Wirth, president of KGHM Polska MiedĹş SA, a major copper and silver producer, talks to Rita Schultz.

November 2014  polish market

17

KGHM is a global company listed on the stock market. Is it more difficult to cater to Polish shareholders or foreign ones?

We regard dialogue with stakeholders, among which shareholders play a special role, as key to the efficient operation of the company. As a global company active on four continents, KGHM’s priority is to enable equal access to information for all participants of international capital markets. Our activities are aimed at ensuring systematic communication and transparent dialogue with present and future investors to provide them with information about the company’s current operational activity and strategic goals. Every shareholder and prospective investor matters for us and we apply an open-doors policy to them. We reply to questions asked by every investor, Polish or foreign, on a current basis. We communicate with the investors’ community by means of current and periodical reports, our website, individual meetings, our participation in investors’ conferences, roadshows and meetings with analysts and fund managers. pm

Certainly, it is not easy, especially as we operate in different cultures and are now present on four continents. When building the mine in Chile we had to cope with this problem as different ways of thinking - Japanese, Anglo-Saxon and Latin American – met on this project. I have to admit that we still have to learn a lot. The Polish mentality – distrust and negating new things – are often an obstacle for ourselves. We have to overcome the barriers we have in ourselves. On the other hand, our chief qualities are openness and enterprise. We are not afraid of challenges.

We may often lack trust at home but young Polish people living abroad behave quite differently. They have no barriers like “this will be a failure,” the mind-set is “I believe this will be a success.”

The Japanese are a demanding partner, but we are able to work with them to good effect, as the Sierra Gorda mine we have opened in Chile shows. Despite these barriers, we have consistently demonstrated that a Polish company can take a step towards a major global expansion and do it very successfully. I have to mention here the Polish engineers who work in Sierra Gorda and are doing an excellent job. These young people do not have these barriers in themselves and are truly citizens of the world. A Pole is the chief of the project and Poles also hold many key posts. In the future, I would like KGHM to have a team of people able to manage further projects in various countries.

future In Poland, you are associated with copper, if only because it is part of the company’s name. But you are also the third largest producer of silver in the world. What is your market share? Is this a stable position?

KGHM has been a leader for many years. In 2013, we produced 1,163.7 tonnes of silver, ranking in third place. It is worth adding that, according to estimates made by GFMS (Gold Fields Mineral Services – ed.), the global mined silver output totalled 820 million ounces, or 25,613 tonnes. This shows we have a big piece of this pie. At present, around 75% of metallic silver is obtained as a by-product in copper ore mining. KGHM’s extractable resources in the mining areas for which it has concessions, including the new field Głogów Głęboki – Przemysłowy, are estimated to exceed 1.1 billion tonnes of copper ore, with the average content of copper at 2.08% and 58 grams of silver per tonne. Receipts from the sale of this metal account for around 17% of our total revenue. pm

KGHM has many projects/mines which are still in preoperational phase. You have exploratory projects even in Greenland. You already produce copper in six mines, most of them located at the other side of the Atlantic. Does that mean that you want to move up from the eighth position in the world you now hold to become a leading copper and molybdenum producer?

My goal, is first of all, to diversify the portfolio of metals we mine. By 2020, the main metals will be copper and silver, noble metals such as platinum, palladium and gold, but also critical metals, which are necessary in the development of modern technologies, on which an increase in consumption and security depends. We want to produce raw materials which, with the use of materials engineering, will be turned into products meeting the needs of humankind. After we have launched the production of molybdenum we will become its leading producer in the world. In the first five years of its operations the Sierra Gorda mine will be producing 50 million pounds of molybdenum a year. In the first years, receipts from molybdenum sales will account for around one third of the mine’s total revenue, which illustrates the scale of molybdenum production. pm

pm

How is KGHM able to conduct mining operations in so many different places and in such different conditions? How are you able to manage the company, considering that it is such a complex process, demanding extensive knowledge and understanding of production processes.

18 polish marketspecial edition 2014

For five years now you have managed a company set up 50 years ago. Is it difficult or easy to manage a company with such a long history?

Over these 50 years the company has evolved, growing from a single mine (ZG Lubin – ed.) to a global producer of copper, silver and gold ranked for years among the top ten. At KGHM, we are all building the company we are proud of. The workers strongly identify with KGHM. Over the decades we have developed great trust in the company from its employees and external stakeholders. pm

How much does KGHM spend on research and development?

Is the expenditure high enough, in your view?

In 2013, KGHM spent more than PLN53 million on research and expert assessments. Expenditures on investment in innovation run into hundreds of millions of zlotys. It is impossible to answer in a simple way whether the spending is sufficient. What we spend is a result of analysing the challenges that KGHM faces. Our research and innovation activity is part of the process of managing our global organization. It determines to a large extent our competitive position on the market and enables us to maintain the economic efficiency of our operations in the long run. Research and innovation is of high priority to KGHM. The company has taken up the challenges involved in the exploitation of deposits which have special characteristics and are located at great depths. This means that in many cases there are no readily available technological solutions that we could use because we are a pioneer in the specific field in terms of mining operations, ore processing and the metallurgy of non-ferrous metals. pm

In your view, what impact spending on innovation can have on the development of Polish companies?

For many years innovation has been seen as a priority source of competitiveness, economic growth and job creation. Contemporary companies can achieve a high level of development if they take an active part in creating broadly-understood innovation. If a company is not flexible enough in this sphere its development may come to a standstill. Innovation is the product pm

special edition

A Pole is the chief of the project and Poles also hold many key posts.

In the future, I would like KGHM to have a team of people able to manage further projects in various countries.

of many activities in the area of education, research, technology, economy and economic policy. In the case of KGHM, the activities include the development of its geological and mining assets in Poland, exploratory activity abroad, greater involvement in ore processing or the recovery of useful components and the implementation of technological operations in keeping with sustainable development principles. In the long run, all these activities are to enable us to raise our mining output to 1 million tonnes, increase the value of our assets, and expand our resources and product portfolio.

Do you see a chance for Polish companies in competition for foreign markets?

Of course. One should not hide away from the world. What is more, I think this is no longer possible at the present time. KGHM helps this chance. Sierra Gorda is an excellent opportunity for the international expansion of Polish companies. Some products used in Sierra Gorda have been delivered by Polish companies.

For example Telefonika Kable delivered cables and Sempertrans Bełchatów delivered belts for conveyors. We have set up a thinktank, Poland, Go Global!, as a form of discussion with companies about how to exploit our presence in Chile, Canada and other pm

countries. It is a kind of ticket for a journey beyond our country.

I hope as many companies as possible will benefit from it.

What challenges will KGHM be facing in the near future?

I would like KGHM to diversify the portfolio of metals it produces. The company plans to focus on copper and silver, noble metals, such as platinum, palladium and gold, but also critical metals such as molybdenum and rhenium. We have applied for a concession for the extraction of unconventional gas and are actively involved in the Polish project for the development of nuclear power stations. We also want to invest in photovoltaics. But first of all we want to produce materials which enable the development of modern technologies. We are testing a technology which will make it possible to withdraw people from the most dangerous areas. In a few years’ time, I see KGHM as a leader pursuing the vision of “intelligent mine.” It is a project designed to automate the whole mining process. This is KGHM’s future. Over these 50 years the company has evolved, growing from a single mine (ZG Lubin – ed.) to a global producer of copper, silver and gold ranked for years among the top ten. At KGHM, we are all building the company we are proud of. The workers strongly identify with KGHM. Over the decades we have developed great trust in the company from its employees and external stakeholders.

• pm

November 2014 polish market

19

Dynamically& successfully Konrad Pokutycki, president of BSH Sprzęt Gospodarstwa Domowego, a daughter company of Bosch and Siemens Household Appliances, talks to Rita Schultz.

A global company – is it an advantage or drawback?

When we look at the world which is changing around us, the answer is obvious – it is definitely an advantage. Of course, as with every economic phenomenon, there are pluses and minuses here. However, from the perspective of a company’s expansion, we see much more positives than drawbacks. The global market is huge and enables great flexibility in production planning, sales and cost distribution. If a company is dependent on a single market or region it has to be prepared for fluctuations in its results, as they depend on the local economic climate and a narrow business environment. The global market allows risk management and, consequently, minimizing the adverse effects of economic fluctuations, also those caused by cataclysms and armed conflicts. And there are savings for consumers. Costs involved in developing and launching new products on the market are usually fixed and high, especially in the case of technologically advanced products. Global sales of large batches of products make it possible to spread the costs across them, which means the products may be cheaper. It should be added, at the same time, that the global market is not the only solution for every company. There are many businesses, especially in the services sector, which operate locally and very successfully. There is enough room on local markets for many businesses. But speaking about global companies, I would like to point to one more special aspect, which is often brought to the foreground. The growth of a global company involves such challenges as corporate social responsibility and sustainable development. Global companies, by virtue of their size and range, have an enormous impact on the development of local and regional communities.

They have to be an example for others to follow. pm

How do you assess the development of BSH in Poland?

BSH Sprzęt Gospodarstwa Domowego, a subsidiary of one of the world’s leading manufacturers of home appliances, has been present in Poland for 22 years now. The period was very dynamic and successful for the company, which began its operations with a staff of only several people. At present, we have four manufacturing sites in Poland and shared services centres.

We provide employment to 3,500 people and have already invested more than EUR500 million in the country. In terms of sales value, we have first place on the market. But the beginnings pm

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were difficult - if only because we did not have yet an appropriate sales chain or service centres for our appliances. We were a pioneer in investing in the manufacture of household appliances in Poland after the country had opened to the world. We launched our first Polish plant with a simple SKD production system in 1994 and proved that in Poland it was possible to manufacture products of top world-class quality. Then in 1996, 2002 and 2005, we successively opened very modern plants to manufacture washing machines, dishwashers and tumble dryers. We also encouraged our suppliers to invest in Poland. Our activity was watched closely by our rivals on the international market.

I think I can rightly say that it was partly thanks to us that they dared to invest in Poland. As a result, the country is now the biggest manufacturer of household appliances in Europe. Most of this output is exported. The year 2013 was very important for BSH. Our company bought the stake in the Zelmer company offered for sale by its previous owner – an investment fund company. Both we and the management board of Zelmer thought that an investor from the same industry would be the best solution for the company’s future. We can promise that we will be expanding production in Zelmer’s plant in Rogoźnica and developing the Zelmer brand. At present, we already sell the full range of large and small home appliances of the Bosch, Siemens, Gaggenau and Zelmer brands under the single BSH roof.

How important is innovation for the company’s development?

Apart from sound finances, innovation is of key importance for the development of a company. Technological progress is made in all economic spheres and customers always expect new solutions. However, the most important thing in the race for winning the hearts and minds of consumers is BSH’s goal to set development trends for the industry. I think we are successful in doing so. We are a reference point for others. Without research and development centres, and investment in new products, no one has a chance of becoming an important player on the market. This is the reason why BSH invests intensively in research and development, setting aside for this purpose more than EUR300 million annually to be distributed among its sites across the world. In Poland, we have a research and development centre for tumble dryers. pm

proposed adopting a Code of Good Practices for Selling Home Appliances. BSH was the first to sign it and put into practice.

The objective of this Code was to create standards to which all producers and distributors of home appliances would adhere to increase consumers’ confidence and make purchases more secure. The practices apply to on-line and in-store sales, promotion and associated services.

...the most important thing in the race for winning the hearts and minds of consumers is BSH’s goal to set development trends for the industry. I think we are successful in doing so.

successful

What do clients appreciate about your products?

The most important thing for us is clients’ trust in our brands and products. BSH has a tradition of paying special attention to quality, functionality and timeless design. This is what consumers value the most and what has earned us so much recognition. We know that the purchase of home appliances is an important expenditure in a household budget and this is why all our products are designed to work reliably for many years. To make our clients fully satisfied, we have been the first to offer them our own service where clients may call round the clock. pm

Is it difficult to compete for clients on the Polish market?

The home appliance market is probably among the most competitive ones. It is exceptionally demanding. We make every effort to ensure that this competition is fair and always to the benefit of the consumers. As a member of the CECED Polska association of employers in the home appliance sector, we have pm

What plans does the company have for the near future?

As I mentioned, we have completed a period of great change and intensive investment in development. We spent over PLN100 million annually to modernize our manufacturing plants.

I hope I will soon be able to present further plans for BSH’s development in Poland. A new goal of the BSH group by 2025 is to double its global sales. I am convinced that our Polish daughter company, BSH Sprzęt Gospodarstwa Domowego, will also contribute to achieving this goal. pm

For many years BSH has been a leader of the Pearls of the Polish Economy ranking. What does this mean to you?

We have quite a lot of rankings, distinctions and awards in Poland. Of course, the most important reward for us is when consumers choose our products. However, one of the key elements in building confidence on the part of consumers is the manufacturer’s strong and sound foundations, especially in a sector making products which should work reliably for many years. Thanks to its insightful and objective research criteria, the Pearls of the Polish Economy ranking gives you an opportunity to test and compare yourself with others on the market. Something which we value especially highly is that the ranking is a product of independent experts. This is why being among the Pearls is so important and incentivizing for us. It crowns our activity and is a distinction for all our employees, who contribute their commitment, time and passion to their work every day. We are happy that the Pearls awards win more and more recognition with each passing year.

• pm

November 2014 polish market

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Leader focused on clients’ needs Łukasz Kalinowski, president of MetLife, talks to Rita Schultz.

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A global company – is it an advantage or drawback?

I am absolutely convinced it is an advantage. MetLife is a strong and well-known brand name in the United States, but in Poland its recognition is not sufficient yet. In May this year, we assumed the name MetLife – previously we had operated as MetLife Amplico.

The decision resulted from our global strategy. The change of the name and brand marked for us the beginning of a new chapter in the history of our company in Poland. The company has been present on this market since 1990. Now, we operate under the brand name denoting specific values – respecting and caring for the client, improving our standards of operation, proposing new solutions to clients tailored to their needs, diversity and openness to what is new. We also exploit MetLife’s experience of 145 years on different markets across the world. This shows who we are and by what we are guided as a global company.

We operate in keeping with our global strategy, which is applied on all MetLife markets. In Poland, we have pursued this strategy very successfully, winning more and more clients and an increasingly large share in the market. As MetLife, we base our success on diversity and cooperation, which produces many benefits, like for example an improvement in financial results, efficiency and first of all a better understanding of our clients’ needs. A global company means an opportunity to use the best practices from other markets in every area of its activity. It is also an opportunity for the employees to acquire experience by working with colleagues from other countries on international projects. A global company also creates an opportunity for vertical and horizontal promotions, including an opportunity to work in another country where MetLife is present. pm

How do you assess MetLife’s development in Poland? You have worked on the Polish insurance market since the early 1990s when the market opened to foreign investors. How do you assess these 25 years of the insurance market?

Our history in Poland is long and eventful. We received licence no. 1 for the sale of life insurance in Poland, which means we have been present here since the beginning of the economic and political transition. Having operated for almost 25 years, we can say confidently that we have contributed to spreading knowledge about life insurance among Polish people.

We have educated a large number of well-qualified staff and insurance agents. We focus in our activity on our clients’ needs. It is the clients that inspire us to change so that we are able to meet their expectations better. MetLife has a strong and stable business in Poland. We are the third biggest insurer in terms of premium and for two years our share in the market has been consistently growing – from 4.7% in 2012 to 7.2% in the second quarter of 2014. It is worth noting that the market as a whole recorded drops in this period. This shows that the strategy we have adopted is effective. pm

How important is innovation for the company’s development?

Innovation is the basis of the company’s activity. On the basis of opinions collected among clients, we not only create our products but also improve the process of relations with the clients. These activities are also designed to enhance their knowledge about the scope of coverage and the rules of the contract.

The experience we have gathered so far shows that insurers are still facing enormous challenges associated with educating the market and building confidence so that insurance products are not perceived as difficult and complicated but rather as friendly and helpful to clients at every stage. Being innovative means for us not only pm

using new technologies but first of all changing the paradigm of thinking in relations with the client to ensure that every level of contact with them is useful and possibly pleasant to them.

Is it difficult to compete for clients on the Polish market? What do clients appreciate about your products?

Since the beginning of the company’s operations the key element in our strategy has been to provide a sense of financial security to the insured in case of unexpected developments and situations in their life. Focusing on service quality and building long-term relations with clients are gaining in importance in expanding our product line, as the needs and expectations of our existing and future clients are changing. Correctly identifying the clients’ expectations and, consequently, meeting them halfway is what helps us in broadening the product line. We offer products which the clients need. We continue to invest in the development of competencies of the staff members responsible for customer service, introduce modern services making access to information easier, simplify and modify sales materials and correspondence addressed to clients, and attach great importance to service quality. We also attach special importance to ensuring that the people we employ are professional and represent high ethical standards.

We demand that they behave in a responsible and loyal manner. pm

We offer products which the clients need.

L

What plans does the company have for the near future?

We want to remain a market leader. We will continue to develop direct sales, expand distribution channels and increase the sales of insurance products. In the health and accident insurance sector, we have a considerable competitive edge. Our goal is to raise the sales of this kind of products through our all distribution channels.

We also exploit our good international relations to develop the worker benefits sector in Poland, while at the same time improving our product and service line. We are also expanding the range of our products. This year, we have introduced a number of new solutions, such as a child insurance product (Secure Child) and a new insurance and savings programme (MetLife Invest). We plan many more new and attractive solutions. Each of them will be based on the key elements of our product strategy: examining the needs of the client and the market, ensuring easy access to services and • making procedures simpler. pm

November 2014 polish market

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their way Polish companies

to increase Research & Development (R&D) spending and including innovation in their

strategies 24  polish marketspecial edition  2014

special edition

Magdalena Burnat–Mikosz, Deloitte partner

W

hat will shape a favorable environment for corporate R&D activity in Poland in the coming years is a steady increase in expenditure and the transformation of the Polish economy into more knowledge intensive. In order not to be trapped on average growth level Poland should base its economy on R&D and innovation. As results of Deloitte Corporate R&D report 2014 show, there is a positive sign in Corporate R&D spending. This trend correlates with the biggest amount EU dedicated to R&D. There has been a decrease in the number of companies not planning any spending on R&D in the next few years (down from 9.8% to 4.2%) and more companies than in 2013 are planning to increase their spending (up to 47.2% from 36.6% over the next one to two years, and to 61.1% from 51.2% over the next three to five years).

On one hand, there is a common understanding that R&D and innovation are important for a long term growth of companies. Innovation should be seen as a platform and not only in terms of products or services but also should concern all aspects of business, such as business model, clustering, cooperation with other companies and research entities, delivery chain, and many more. Polish companies that concentrate more on R&D and include innovation in their strategies can think of new ventures and markets. The low labor cost may no longer

be an advantage, and entering new markets will require more knowledge-intensive products. Companies that want to stay competitive on the market constantly improve their products, staying connected to customers. This also helps them to make a shift in thinking of R&D as a breakthrough search activity.

As Deloitte Corporate R&D Survey 2013 and 2014 show – leading definition is Changes / improvements of existing products / processes / services leading to better performance / characteristics of products / processes / services (chosen by 55.6%). This replaces the Development of new products / processes / services, which was selected this year by 48.6% (down from 78.0%).

On the other hand, R&D activity has higher risk, both in terms of the commercialization process, and its impact on future profits. For that reason Polish firms seek external financing, namely grants and tax reliefs, which could decrease costs of capital and lower risk. What they would prefer is a balanced system of grants and tax reliefs, because the later gives more stable conditions to plan R&D activities. There are elements of that kind of support system. However, tax reliefs for companies that have R&D center status or tech tax credit have a small impact on their R&D activities. Furthermore, a stable system, preferably involving a mix of R&D grants and tax incentives to reduce the dependence upon R&D funding from EU funds would add up to a better environment for R&D activities. Deloitte Corporate R&D Survey 2014, indicates to what extent the external factors mentioned below would influence the increase of company R&D spending in the coming 1-2 years. The most important factor for companies was availability of more types of benefits – 2.35 (on a scale of 0 – 3, where 0 is a factor with no influence and 3 is a factor with the biggest influence).

The increase in companies’ R&D activity not only has a huge influence on how innovative the country is but also on the growth of the economy as a whole. Battelle Memorial Institute data show that each dollar spent on R&D activity implies an increase of the country’s GDP by 2.9 dollars1, and as OECD research shows the increase in BERD as a share of GDP by 0.1% implies its growth by 0.2%2.

Poland’s economy will be innovation-driven if all necessary factors are in place, namely a system of incentives (with tax reliefs available), competitive advantage based on R&D low but not cheap cost of labor, and last but not least companies’ with strong strategic focus on innovation.

• Magdalena Burnat-Mikosz, Partner R&D and Government Incentives Krzysztof Senger, Senior Manager R&D and Government Incentives

1 Battelle Memorial Institute, 2014 Global R&D funding forecast 2 The Sources of Economic Growth in OECD Countries, OECD, 2003

November 2014 polish market

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The importance of CSR in the development of an international company

“

The growing public, environment and consumer awareness of societies has an increasingly strong impact on business.

Clients expect facts from companies rather than merely declarations associated with their activity. Financial data are no longer the only source of information about the condition of companies and their potential. Non-financial data and a company’s attitude towards its environment have started to determine its reputation to an increasingly great extent.

At the FTSE 250-listed International Personal Finance (IPF) group, of which Provident Polska is a member, we use a strategic approach to corporate social responsibility (CSR) and look at all our activities through the prism of ethics. This means we

are well prepared to support our clients and the communities they live in.

Ever since its establishment in Poland, the priority for Provident Polska has been to do business in a responsible and ethical manner. Business success means not only financial profits and a rise in the number of clients. It is something more – satisfied employees and business partners, the local communities which we know and respond to their needs, and being aware that we identify our impact on the environment and gradually minimize it. Our CSR activities are a natural part of our operations and the strategy of the whole IPF group.

This year, we created and implemented a comprehensive CSR strategy for the years 2014-2016. It will be supporting our business in pursuing its goals, building the value of the brand on the Polish market, strengthening our reputation and improving relations with stakeholders. Aware of the growing need for dialogue with the community in which we are active, we published this year the company’s first social report. It was prepared in compliance with the GRI G4 standard at the core level and checked by an independent auditing firm.

We are convinced that our professional approach to corporate social responsibility will be reflected in our clients’ loyalty and will be appreciated by the whole market.” • Maria Sieklucka Specialist for Corporate Social Responsibility at Provident Polska

global market

“

The global market is not homogenous. Large corporations making up the Fortune500 list are best visible on the market. Poland’s Orlen is among them, but joining the club is very difficult for most companies from the “catching-up markets” - I personally do not like the phrase “emerging markets” because they did exist in the past and are still there. And it is them that are catching up with the leaders. Market niches offer a chance for “the globalized average,” as I call companies with a big potential for growth through exports and global expansion if they get the support they need to expand faster. I have identified around 2,000 such companies on the Polish market. I write about them in the book entitled “Przedsiębiorczość, polityka, rozwój” (Enterprise, Politics, Development), which is now coming onto the market. The publisher is the Sedno publishing house.

Prof. Herman Simon has found similar companies in Germany and elsewhere. He pointed out that, although the Fortune500 list includes a relatively small number of German and Chinese companies, the economies of the two countries are growing rapidly.

The credit goes to “the globalized average.” Simon calls them “hidden champions.” Even if only some of these dynamic Polish companies conquer the global market this will have a positive impact on the whole Polish economy. And this prospect is quite realistic.”

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Prof. Jerzy Cieślik, Kozminski University

PROGRESS

THE PEARLS OF INNOVATION

Pearls of Innovation

laureates

F

or 12 years now creative and successful firms have been identified in the Pearls of the Polish Economy ranking. It is worth stressing that scientific tools are used to compile this league table. They make it possible to honour leading businesses in an objective way.

Pearls of Innovation will be awarded for the third time. In this category, the award committee, of which I have the honour and pleasure to be a member, grants awards to the businesses, institutions, scientific centres and inventors who can be regarded as innovation ambassadors thanks to the results of their work, research and innovative solutions. The award is aimed at promoting, presenting and popularizing innovation in the economy.

Speaking about innovation, one should remember that this notion is very broad. It does not mean only a new technologically advanced product. Innovation also means every new practical application, not necessarily technological one,

Innovation also means every new practical application, not necessarily technological one, like administration systems, treatment methods or methods of plant cultivation.

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Prof. Leszek Rafalski, president of the Main Council of the Research Institutes, member of the Progress award committee

like administration systems, treatment methods or methods of plant cultivation.

The Pearls of Innovation award, which perfectly fits in with the format of the ranking, underlines the inextricable connection between the scientific community and business. The smart growth of our economy and social development require activity and cooperation of scientific research units, which have a scientific research potential and laboratories, with businesses and institutions operating in the business environment, which absorb new technologies.

The development of innovative solutions is more effective if it is managed and implemented in conjunction with business. So far the involvement of private capital in the R&D sector in Poland has been insufficient. But in the 2014-2020 financial period, there are numerous programmes designed to address this problem. Their goal is to increase the contribution of businesses to the process of developing new technologies in the R&D sector. In the European Union’s framework programme for research and technological development Horizon 2020, there are contests intended for scientific units and research and industrial consortia, but also small and medium businesses (SME) operating independently. An important role in the process of bringing research findings to the marketplace has been assigned to businesses, especially those in the SME sector. A new financial instrument and a separate budget has been created for this purpose. These measures are aimed at stimulating cooperation between the business and scientific research sectors.

As I represent 116 scientific research institutes, which conduct mainly applied, but also basic, research to enhance innovation in the Polish economy and improve health care, agriculture, defence, and environmental protection, I am aware of the huge potential of the Polish research institutes.

Looking at the research work conducted in our laboratories and at the inventions, discoveries, solutions, research methods, and improvements to existing materials and technologies, which have won awards in various international competitions, one may reach the conclusion that the situation is not that bad when it comes to the Polish creative potential leading to an improvement in the innovation index. This is why the best and most creative should be appreciated and encouraged.

It is worthwhile to award Pearls of Innovation in recognition of talent, creativity and research passion because they are indispensable in the development of the new technologies and innovative solutions which are so important for the Polish • economy and society.

special edition

Progress

Pearls of Innovation

P

rogress – Pearls of Innovation is an award granted since 2011 for the most innovative businesses and projects.

The competition is run by “Polish Market,” an economic magazine published in English with the aim of world-wide promotion of Polish economy, culture and science, and by the Main Council of the Research Institutes.

The competition is intended for businesses, research units, Polish-based institutions and inventors. Entries may be submitted independently or though businesses or institutions. The entrants are evaluated on the basis of what they have achieved over the previous three years. The award committee takes into account the innovation of the projects entered for the competition, the way in which they are put into practice and their impact on the economy and society.

Progress – Pearls of Innovation are awarded for the most innovative projects in a given year. The winners are businesses and institutions which deserve being called ambassadors for innovation thanks to their work and achievements.

Winners of the Progress –

Pearls of Innovation award 2014 Category: Innovative Research Unit National Centre for Nuclear Research (NCBJ) has been actively and successfully involved in developing innovative technologies and effectively bringing them to the marketplace. One of the best examples is the use of the Maria reactor to produce November 2014 polish market

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molybdenum-99, an isotope indispensable in many medical procedures. Last year, NCBJ produced as much as 18% of the world’s total output of the isotope, which is quite a phenomenon in the context of the position of the Polish economy and high-technology products. Working for 20 weeks, the reactor provided molybdenum-99 for 2 million medical procedures.

NCBJ’s innovative activity is not limited to research associated with the Maria reactor. One should mention here the recently-completed Accelerators and Detectors project funded under the Operational Programme Innovative Economy. The result of the project is the development of specialized systems using accelerators and ionizing-radiation detectors in medical therapies and for detecting dangerous materials and toxic waste. Solutions enabling the effective checking of loads at border crossings were also developed as part of the project. In September 2014, NCBJ received a patent for such solutions. The list of projects on which NCBJ intensively cooperates with Polish industrial partners includes such different sectors as the electronics, mining and construction industries.

NCBJ not only carries out research projects but also actively encourages its employees to conduct innovative activity. Its inhouse regulations on the management of intellectual property rights support motivational mechanisms at the institute while at the same time securing public interest. The Świerk Science and Technology Park, a project carried out as part of the Regional Operational Programme for Mazowieckie Province, will make it possible to provide public aid – including research services – to small and medium businesses.

Also noteworthy - especially in the context of the EU’s Horizon 2020 programme for funding research and development, which is focused on strengthening cooperation among research institutions and businesses - is NCBJ’s extensive cooperation with foreign centres. It enables it to receive the latest technologies and solutions complementing the concepts developed by NCBJ.

Category: Inventor/Scientific Personality Assoc. Prof. Danuta Ciechańska is a graduate of the Faculty of Biotechnology and Food Sciences Łódź University of Technology. She received a PhD, Eng. degree in 1996 and a post-doctoral degree in 2013. Since 1990 she has worked at the Institute of Biopolymers and Chemical Fibres in Łódź. In 2002-2005, she was scientific secretary of the institute and since 2005 has been its director. She has an experience of over 20 years in implementing and managing Polish and international research projects, and projects carried out for industrial partners in such areas as materials engineering, biotechnology, chemical technology, polymer processing and textile studies. She has experience in managing research laboratories accredited by the Polish Centre for Accreditation (PCA) and OECD. Among the areas of research she specializes in are bioprocesses of polymer and textile synthesis and modification, biodegradation of polymer materials and textile products, biomaterials and bioplastics.

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She is the author and co-author of over 100 publications in scientific journals, and 32 patents and patent applications. According to the Web of Science database, the total number of citations of her publications in the years 1998-2014 was 179. If selfcitations are excluded the number was 166. The Hirsch Index for her publications in 1998-2014 is 6.

She has taken part in applying technologies and research procedures in Polish and foreign companies, including the launch of the production of loud-speakers with membranes made of modified bacterial cellulose at the Tonsil SA company, the production of a biomedical chitosan preparation in an American company, and the production of the Tromboguard haemostatic dressing in the Tricomed SA company.

She is an expert for the European Euratex platform, vice-president for innovation at the EPNOE association, vice-president of the Polish Chitin Society and a member of many other scientific organizations. She is one of the initiators and originators of the Supra-Regional Science and Industry Centre (Bio)-Polymers-Materials-Technologies for Economy (Polintegra).

Category: Enterprise The LfC company was set up 25 years ago, in 1989, the year which marked the beginning of building a free Poland. The company undertook a task, which was almost unfeasible at that time. Under conditions of an emerging democracy, during the country’s economic and social transition, LfC based its success on developing modern surgical methods for treating spine diseases. The founding vision of Lechosław F. Ciupik, supported by passion and consistent efforts to achieve the goal set for the company, enabled LfC to become established on the demanding spine implant market. Today, in 2014, after 25 years of development, LfC enjoys recognition from world-class experts, has a well-established place among the market rivals and enjoys their respect.

Over 40,000 patients have already been cured thanks to LfC implants. The company continues to develop world-class innovative methods for the surgical treatment of spine diseases and systematically conquers new markets. Its methods are protected by numerous patents. LfC works under cooperation agreements with more than 10 medical centres, several technological centres and several foreign centres. The company has won enormous trust from its partners.

Thanks to its cooperation with Polish inventors, Eco-Sol SA shows Poland to the world as a place where modern technological solutions are being developed and where people are not indifferent to the fate of the earth. On September 6, 2014 Eco-Sol gave an international presentation of a Polish-designed vertical-axis power station. The original design, not modelled on any of the existing solutions or technologies, has a great chance of revolutionizing the wind power sector. The vertical-axis power station is environment-friendly. It does not harm animals or birds and the turbines are very quiet. Irrespective of how strong the wind is, the noise produced by the turbine’s directional steel nozzles and vertical steel panels does not exceed 40 decibels. The operation period of a vertical-axis turbine is estimated at 50 years. After that time, almost all of its parts can be recycled. What is more, the turbine can be located in places which are not accessible for conventional wind power turbines. Vertical-axis turbines can be used by both industry and households.

•

special edition

LUX

November 2014  polish market

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honor ary pearls

Pearls which make up a beautiful necklace

“

It all started 12 years ago when the editorial board of “Polish Market” started to grant annual awards to individuals and institutions who have rendered special services to our country’s economy. At the end of each year a few dozen people received beautiful statuettes for outstanding activity in individual spheres of economic life. The choice of the laureates was based on clear and measurable criteria. They were expressed by millions and zlotys, tonnes of products made and customer numbers. The winners fully deserved the recognition that they received in the form of the Pearls awards. But there was a sense that perhaps even more respect should go to persons whose achievements were not reflected in dry figures and that there were people without whom the social life of the Third Republic of Poland would have been meagre. And it was then, nine years ago, that the irreplaceable head of “Polish Market,” Ms Krystyna Woźniak-Trzosek, initiated the Honorary Pearls awards granted to individuals for special services to science, economy, culture and for promoting patriotic and social values. In each of these categories, one or two individuals, or sometimes institutions,

What do the Honorary Pearls awards mean to you among the numerous national awards granted in Poland every year?

What sets them apart from others? What is their strength?

Firstly, their strength is the choice of laureates. At the award committee, we try to select outstanding persons - people from the business community and economic activists, scientists and artists. The composition of the award committee is also diversified. It includes scientists, economists, economic practitioners, politicians and people from the world of culture. I am convinced that, among many other distinctions, the Honorary Pearls granted by the “Polish Market” magazine are very important awards, highly valued in many communities. pm

Who are this year’s Honorary Pearls laureates to you?

I have known Jerzy Koźmiński, an Honorary Pearls laureate in the promotion of patriotic values category, for years. As Polish ambassador to the United States, he greatly contributed to Poland becoming a member of NATO. He has exceptional ethical and professional competencies and has made a significant contribution to the 25-year process of transformation in Poland.

are awarded with Honorary Pearls. The 10-member award committee is responsible for selecting the laureates. It is composed of people with unblemished reputation, including five professors, entrepreneurs and politicians. Among them is Jerzy Buzek, former prime minister and president of the European Parliament.

Of course, the initiator of the awards, the editor-in-chief of “Polish Market,” is also a member of this body. Each of the committee’s members presents their candidates and explains the choice.

Then, decisions are made through discussion. The process is fully democratic, which is especially important in cases when one has to rely on intuition rather than measurable criteria. The result of the process is a consensus, which is not always easy to reach. But finally, the laureates are selected and once a year Honorary Pearls – which are very beautiful statuettes, by the way – are granted at a grand gala event, which is usually held in Warsaw’s Royal Castle. This year, the laureates have been chosen for the ninth time.

They will join the group of several dozen persons who received the award in the previous years. It seems the persons may be called genuine pearls of our social life – that they “make up a necklace,” which is becoming longer and richer every years.

Let me congratulate this year’s laureates who have joined such a distinguished circle. But I also wish to congratulate the editorial board of “Polish Market” because the family of individuals who have won the award has grown. Ladies and Gentlemen, I am proud that I had an opportunity to take part in creating the Honorary Pearls’ history.”

• Prof. Andrzej Wiszniewski, former Minister of Science and former Rector of the Wrocław University of Technology

jury Cardinal Henryk Gulbinowicz, a winner of the Honorary Pearl in the same category, is a great patriot, cardinal and archbishop of Wrocław. He was one of those who shaped Poland’s Catholic Church in the difficult times of communist Poland, a person who supported the effort towards a sovereign and democratic Poland.

Prof. Michał Kleiber, the laureate of the Special Honorary Pearl award, is a scientist with outstanding achievements, a person enjoying wide respect and an undisputable authority. For years he has held the prestigious post of president of the Polish Academy of Sciences and, also as a minister of science, has made a significant contribution to the development of Polish science through his commitment and determination in carrying out the tasks he has un• dertaken.

pm

Janusz Steinhoff, former deputy Prime Primer and Minister of the Economy, Chairman of the Council of the Polish Chamber of Commerce

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“

This year, it is for the fifth time that I take part in the work of the Honorary Pearls award committee. It is a great honour for me that the editorial board of “Polish Market” has asked me to be a member of this distinguished body. My role is to present to members of the committee outstanding artists and activists whose achievements contribute to promoting Polish art and culture. It is not about compiling a ranking. Our goal is different. We highlight outstanding personalities who have an influence on how our country’s importance is perceived, not only in the area of culture. International successes of Polish artists directly contribute to Poland being perceived as a modern country whose development progress in all its aspects has been noticed not only in Europe but also beyond it.

This potential is produced by a sum of activities in all spheres of the economy. But this would not have been possible without the

Pearls

The publisher of “Polish Market” has defined the mission of this English-language economic magazine as the promotion of Polish economy, regions, science and culture in Poland and beyond. Among the readers of this monthly magazine are presidents and board members of firms operating in every sector of the economy. “Polish Market” is also delivered to diplomats and government agencies dealing with the promotion of Poland in the international arena. All this makes the monthly an important vehicle for the promotion of our country. But it also determines the importance of non-publishing projects of this publisher. One of them is the Pearls of the Polish Economy competition.

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Prof. Ksawery Piwocki, former Rector of the Academy of Fine Arts in Warsaw

jury

among Polish pearls

“

remarkable and internationally noticeable artistic achievements, which promote our country. This kind of promotion is the most effective method for our products and services, our companies’ reputation and all our achievements in the sphere of material culture to be built on the basis of knowledge about Poland, a country associated by opinion-forming communities with important artistic developments and the names of the most eminent artists from all disciplines of art.”

•

The annual ceremony of awarding the Pearls of the Polish Economy is undoubtedly one of the most significant developments for those for whom Polish success is an important thing.

The Pearls competition has been organized annually for 12 years now. Its methodology deserves special attention. The Pearls list is made up of the most resilient Polish companies. They are assessed in terms of growth in revenue, return on sales, debt, gross return on assets, return on equity and labour productivity.

In the 21st century, a time of a globalized economy, a country’s credibility and attractiveness in the eyes of investors and partners is seen, among others, through the prism of national economic champions – companies which are the most dynamic, innovative and efficient, something which makes them recognizable. But the activity of smaller producers and service providers is also of no small importance. This is why I am so happy that on the map of the world it is increasingly difficult to find a country with no Polish company present. More and more Polish companies, not only the biggest ones, decide to invest abroad and do so on almost all continents.

I wish to sincerely congratulate all the winners of this year’s Pearls competition who have been granted awards for achievements in such areas as research, culture and economy and for promoting Polish traditions, national heritage and social values because they are all ambassadors for Poland in the world.

They are pearls among Polish pearls.

•

Adam Szejnfeld, member of the European Parliament www.szejnfeld.pl www.kobiecastronazycia.pl

honor ary pearls

Honorary Pearls 2014 This year’s Honorary Pearl winners, as usual, are exceptional persons.

It is worth getting to know them better.

In the category: science Prof. Henryk Samsonowicz Prof. Andrzej Pawlak

Prof. Henryk Samsonowicz of the University of Warsaw is a historian and mediaevalist who specializes in the early mediaeval history of Poland in the context of Central and Eastern European history. In 1971, he became associate professor and 10 years later full professor in the humanities. In 1980-1982, he held the post of rector of the University of Warsaw. An active participant in the Solidarity movement, he took part in the Round Table talks with the government in 1989. After the parliamentary elections in the same year, he assumed the post of education minister in the first non-communist government, which was formed by Tadeusz Mazowiecki. He held the post until 1991. He is a member of many academic institutions and bodies, including the Polish Academy of Arts and Sciences (PAU), Polish Academy of Sciences (PAN), Polish Historical Society and Council of the Museum of the History of Polish Jews. He is a winner of the Ryszard Kapuściński Award of the Polish Press Agency, and has been awarded the highest French and Polish decorations – the Legion of Honour and the Order of the White Eagle. He is a member of the chapter of the order. He is also the author of around 800 publications, including 16 books and university textbooks, several hundred articles and more than 200 reviews. Among his best known works is “Późne średniowiecze miast nadbałtyckich. Studia z dziejów Hanzy nad Bałtykiem w XIV-XV w.” (Late Middle Ages of Baltic cities. Studies of history of the Hanseatic League in the 14th and 15th century), “Miejsce Polski w Europie” (Poland’s Place in Europe), “Tysiącletnie dzieje” (A Thousand Years of History), written together with Janusz Tazbir) and “Historia Polski do roku 1795” (History of Poland until

1795). His books were published in Britain, Germany, France, Russia, Slovakia, Hungary and Italy.

“One of the stages in our complex history is associated with the question: How come a state which disappeared from the political map of Europe at the end of the 18th century was at the same time a point of reference for the values that European peoples now have on their banners – freedom, independence and subjectivity? Remember that ‘when we did not exist’ they sang Polish songs in Germany.

And in France during revolutions people in Paris shouted: ‘Vive la Pologne!’ I am convinced that most of these people did not know whether ‘la Pologne’ was a continent or country, or whether it lied on the Black Sea or Red Sea coast. So I think we were able to survive among so many European peoples thanks to this awareness that the ‘nest of freedom’ was here”, Henryk Samsonowicz wrote for the special June edition of “Polish Market” devoted to celebrations of our freedom.

above generated USD5 billion in profits thanks to his solutions. Andrzej Pawlak is also the author of over 50 scientific publications. His book on electromechanics and electromagnetism is one of the most important books used by students at many universities across the world. He has developed an innovative technique for identifying technological niches.

The method enables looking at the problem of innovation globally and finding solutions which at first glance may seem strange. Since 2011 he has given lectures about this technique at Stanford University and recently also at Berkley University. Professor Pawlak is also president of Vortex Innovation Consulting Group, which works with many American and European organizations.

Prof. Andrzej Pawlak is called “a genius of innovation” because companies earn billions of dollars thanks to his patents. A holder of over 100 patents, including for the ABS system and electronically controlled heart valve, he wants to build a Polish Silicon Valley. He has worked for General Motors and Hitachi and won the title of scientist of the year in the United States. His heart valve is considered to be one of the 10 most important heart assist devices. He lectures at the Universities of Berkley and Stanford in California, being one of the few scientists working for two universities of the top five in the United States. He is a specialist in technological information, technology commercialization and intellectual property. After earning a PhD from the Silesian University of Technology, he worked for Hitachi in Poland and Japan. For 28 years now he has lived and worked in the United States in the research and development departments of General Motors and Delphi. The companies mentioned

of Commerce (KIG)

In the category: economy The Polish Chamber

The Polish Chamber of Commerce (KIG) is Poland’s largest independent organization of business. Set up in 1990, it represents the biggest number of businesses, bringing together more than 150 smaller organizations. The Polish Chamber of Commerce promotes social sensitivity among businesses.

Its training sessions and conferences help entrepreneurs in applying ethical standards. The most socially sensitive firms are honoured with awards in the Fair-Play Business programme.

The Polish Chamber of Commerce takes care of Polish businesses in the international arena.

It is a member of the Association of European Chambers of Commerce and Industry Eurochambres and the International Chamber of Commerce in Paris. KIG has signed agreements on cooperation with most of the national chambers

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of commerce in the world. By assuming the post of Eurochambres vice-president in 2008, KIG President Andrzej Arendarski strengthened the position of the Polish Chamber of Commerce in the international arena.

The Chamber works to improve Poland’s international image. If Poland is perceived in a positive way Polish businesses will be faring better on the international market. To this end, KIG has organized international exhibitions for Poland at the world expos in Hanover and Aichi and national expositions for Polish businesses across the world. The Brand Poland Institute, established by KIG, is responsible for promoting Poland’s image internationally.

KIG’s activity is centred in its 20 committees.

Their chairmen and members are outstanding economic practitioners, scientists, local government members and social activists operating in their respective committee’s area of interest. The committees have two basic functions: they advise the KIG Presidium and integrate business communities to solve specific problems. The KIG committees, taking an active part in the work of parliamentary committees, are involved in preparing and giving their opinion on the laws which have a direct impact on business activity.

In the category: Promoting Social Values Irena Koźmińska Irena Koźmińska, the founder and president of the ABCXXI - All of Poland Reads to Children Foundation. In 2001, she initiated the social campaign under the slogan “All of Poland Reads to Children.”

Its main goal was to encourage parents, teachers and other adult people to devote at least 20 minutes a day to reading to children. Research conducted by the Ministry of Culture and National Heritage has confirmed positive changes in the communities in which the Foundation has operated, with children performing better at school, having less behavioural problems at home and at school, and participating to a greater extent in after-school activities. An increase in readership has also been noted by local libraries. The campaign is still continued. It served as a model for a similar Czech initiative, whose patron was Vaclav Havel, and similar campaigns in Slovakia and Lithuania. The campaign “All of Europe Reads to Kids” was initiated in 2011. Irena Koźmińska and Elżbieta Olszewska wrote books entitled “Z dzieckiem w świat wartości” (With a Child into the World of Values) and “Wychowanie przez czytanie” (Upringing through Reading). She published articles on upbringing problems in the “Polityka” weekly and elsewhere. In 2011, Polish President Bronisław Komorowski decorated her with the Officer’s Cross of the Polonia Restituta Order. She has also been awarded with the Order of the Smile, Gloria Artis

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medal for services to culture and Medal of the National Education Commission. “By reading to little kids we help them understand the world better, make it easier for them to communicate and develop in them the reading habit,” she says. “Reading to a child every day for pleasure is a truly magic activity because it meets the child’s all emotional needs, excellently supports his or her mental, intellectual and social development, and is one of the most effective upbringing strategies. Additionally, it makes children happy and leaves them wonderful memories.”

In the category: Promoting Patriotic Values Cardinal Henryk Gulbinowicz Jerzy Koźmiński

Cardinal Henryk Gulbinowicz was ordained as a bishop by Cardinal Stefan Wyszyński in February 1970. In 1976, he was appointed archbishop metropolitan of Wrocław by Pope Paul VI. Earlier, he had served as apostolic administrator of the Vilnius Archdiocese in Białystok. It is from Białystok that he came to Wrocław, the city with which he has been associated until now.

In 1981, after the imposition of martial law in Poland, he founded the Archbishopric Charity Committee in Wrocław. Its task was to take care of the interned people, prisoners and the poor. Oppositionists were hiding and meeting in archdiocesan buildings. And this is where the legendary PLN80 million in membership fees contributed by members of the Lower Silesian chapter of the Solidary trade union were deposited. The unionists had withdrawn the money from a bank in Wrocław in 1981, 10 days before martial law was imposed. This development has inspired Waldemar Krzystek to make the feature film “80 milionów” (80 Million).

The money was withdrawn at the very last moment by three young Solidarity activists. They were asked to do so by Władysław Frasyniuk, who was chairman of the Lower Silesian Chapter of the trade union. On December 13, 1981 the account was blocked by the communist authorities. They considered the withdrawal to be a bank robbery and made a frantic effort to recover the money. But Cardinal Henryk Gulbinowicz guarded the cash in his private rooms in the Bishop’s Palace. The money, miraculously saved from the authorities, was later used to build the underground Solidarity movement in Wrocław.

The cardinal founded many new parishes and completed the construction of the Retired Priests’ House in Wrocław. He also set up two media outlets – the “Nowe Życie” monthly and the Catholic Family Radio. He worked in the Vatican Congregations for the Clergy, for the Evangelization of Peoples and for the Oriental Churches. He is an honorary citizen of Wrocław and a knight of the Order of the White Eagle, Poland’s highest decoration. He is famous

for his exceptional sense of humour and has been awarded the Order of the Smile. Since 2004 he has been a retired archbishop of Wrocław – he is now 91.

Jerzy Koźmiński, an economist with a degree from the Faculty of Foreign Trade at the Central School of Planning and Statistics (now Warsaw School of Economics). Since 2000 he has been president of the Polish-American Freedom Foundation, set up to support building a civil society, democracy and market economy in Poland, and to share experience in changing the political and economic system with other Central and Eastern European countries.

In 1994-2000, he was Polish ambassador in Washington. His mission was centred on efforts for Poland’s becoming a member of NATO and shaping relations between Poland and the United States as allies. Before assuming the diplomatic post in the United States he had taken part in restructuring the Polish state and its economy. Since 1989, as director general and then undersecretary of state in the Government Office, he was the closest associate of deputy Prime Minister and Finance Minister Leszek Balcerowicz, the architect of the programme of stabilising and transforming the Polish economy. For two years he coordinated the work of Balerowicz’s staff. In 1992-1993, as an associate of Prime Minister Hanna Suchocka, he organized and headed analytical and advisory teams for the head of government. In 1993-1994, he was secretary of state at the Ministry of Foreign Affairs. His tasks included preparing a programme to modernize the Polish diplomatic service.

In 2000, he received the Commander’s Cross with a Star of the Polonia Restituta Order from the president of Poland. In 2002, in Vilnius he was decorated with the Order of the Lithuanian Grand Duke Gediminas for supporting the Euro-Atlantic aspirations of Lithuania. He also received the Department of Defence Medal for Distinguished Public Service in Washington in 2000, the Jan Nowak-Jeziorański Award in 2011 and the Kosciuszko Foundation’s medal for contribution to the development of Polish-American relations. In 2004, he was head of the Polish committee organizing the European Economic Summit in Warsaw just before the enlargement of the European Union.

In the category: Culture Sinfonia Varsovia

Prof. Leon Tarasewicz

Sinfonia Varsovia – many cities could envy Warsaw such a showpiece. The world-renowned Sinfonia Varsovia Orchestra is associated mainly with two great musicians: Yehudi Menuhin and Krzysztof Penderecki. Both have exerted a special influence on its development. The legendary violinist Yehudi Menuhin came to Poland in 1984 to give concerts as a soloist and conductor at the

honor ary pearls

invitation of Waldemar Dąbrowski, the then director of the Studio Art Centre in Warsaw, and Franciszek Wybrańczyk, the then director of the Polish Chamber Orchestra. Wind instruments were added to the orchestra for these concerts, which turned out to be a big success. After the concerts, Yehudi Menuhin suggested that the composition of the orchestra should remain the same and said he would like to work with it. This is how the orchestra came into being. “Work with no other orchestra has given me so much satisfaction,” Sir Menuhin said after the concerts. Krzysztof Penderecki was the orchestra’s music director since 1997. And since 2003 he has been its artistic director. The orchestra does not have its own conductor. The musicians give concerts with famous soloists and conductors across the world in the concert halls of the United States, Canada, Argentina, Chile, Brazil, Hong-Kong, Japan, Korea, Australia, New Zealand, Africa and Europe, and of course Poland. The programmes often include pieces written by Polish composers. The orchestra appears at festivals, subscription concerts and concerts given on special occasions. Sinfonia Varsovia has recorded all symphonies of Beethoven, Brahms, Schubert and Schumann. It performs and records baroque, neoclassic, romantic and contemporary music, and also likes making film music.

It contributes sometimes to recordings of outstanding Polish jazz musicians and singers. The orchestra has produced many albums, and recordings for the radio and television. Its discography is composed of nearly 300 award-winning albums. In 2012, Warsaw Mayor Hanna Gronkiewicz-Waltz, Krzysztof Penderecki and Sinfonia Varsovia Director Janusz Marynowski signed a letter of intent to build a concert hall for the orchestra.

Leon Tarasewicz is a professor at the Academy of Fine Arts in Warsaw and one of the Polish painters known outside Poland the best. His art, distinctive and easily recognizable, spans from classic easel paintings to spatial installations shown in museum interiors, urban space, squares and architectural complexes. Landscapes – forests, fields and meadows – are the most frequent source of inspiration for him. The artist also draws on the folk art of the Polish-Belarussian border areas – Leon Tarasewicz is of Belarussian descent, which he often emphasizes – and the art of Polish Colourist painters. He is an ambassador for Polish culture, a distinctive and important person in his community, promoting and creating contemporary visual arts. His works were shown at the exhibition “Side by Side. Poland – Germany. 1000 Years of History in Art” alongside such important and famous works as “Prussian Tribute” by Jan Matejko and sculptures by Veit Stoss. He had many exhibitions in Warsaw’s Zachęta Gallery, Centre for Contemporary Art in Ujazdowski Castle and National Museum. He took part in the Venice Biennial and the International Biennial in Sao Paulo. His works were shown at the most important galleries in Europe and the United States. His

paintings make part of the most important collections on virtually all continents. He is also committed to the promotion and development of the Podlasie region in eastern Poland.

In the category: Applied Arts JEMS Architekci The JEMS Architekci architectural practice was set up in 1988, but the team of architects headed by JEMS partners has been active since 1980, being one of the first private architectural design studios in Warsaw.

The firm is managed by Olgierd Jagiełło, Maciej Miłobędzki, Jerzy Szczepanik Dzikowski and Marcin Sadowski, who are architects and the firm’s owners, and Wojciech Zych, president of the Board who is responsible for legal and financial matters.

Architects and partners Paweł Majkusiak and Andrzej Sidorowicz joined the Board in 2003 and Marek Moskal in 2006. Over the years JEMS grew from a small practice to become a team of nearly 50 architects. The partners and architects who lead individual projects are responsible for the whole design process and construction, managing the work of a team of specialists. JEMS Architekci continue the modernistic tradition. Their designs represent the qualities of social and cultural sensitivity. Each design is well thought out and adjusted to the function of the building and the client’s specific expectations. The architects try to find what is specific to individual architectural types. They believe it is very important to define the theme so that it becomes an inspiration for artistic experiments. In their work they draw on the reality that surrounds them and the experience of the past. Of great importance is not only the architectural context of the designed building, but first of all analysis of the multi-layered impression of reality and even being aware of some constraints. This has become a starting point in search for unconventional architectural solutions.

“Form follows function” - this simple statement has been like a credo for several generations of Polish architects. And so it is for the JEMS Architekci team. Among their main projects in Warsaw is the residential complex on Hozjusza Street, Babka Tower, the office building of Agora SA on Czerska Street and the office building of Polpharma on Bobrowiecka Street.

Special Honorary Pearl Prof. Michał Kleiber Michał Kleiber is a full member of the Polish Academy of Sciences (PAN) and its president since 2007.

He is a specialist in mechanics and information

science. The main subject of his work as a researcher and teacher is the application of modern computer techniques in scientific research, technology and medicine, in particular for the modelling, analysis, simulation and visualization of complex phenomena of non-linear thermomechanics. In recent years he has also dealt with the country’s pro-development policy, in particular the strategy for the development of education, science and innovation in the economy.

He is the author or co-author of over 240 scientific publications and seven books published by world-renowned publishers. He is a member of editorial boards of 17 international scientific journals and the editor-in-chief of “Archives of Computational Methods in Engineering,” a prestigious journal of world renown published by Springer. He is engaged in popularizing science, for example as a member of the Scientific Council of the “Wiedza i Życie” monthly. He has received many distinctions, including the award of the Foundation for Polish Science, the most prestigious scientific award in Poland, and a medal awarded by the Kingdom of Belgium for his achievements in innovation. He has received the honorary doctor degree from the universities in Lublin, Kraków and Warsaw, (Poland), Darmstadt (Germany), Mons (Belgium), the Polish University Abroad, based in London, and also holds the title of honorary engineer from Ecole Nationale d’Ingenieurs in Metz (France). He is a foreign member of the Austrian Academy of Sciences, a member of the European Academy of Sciences and Arts in Salzburg (Austria) and a member of Academia Europaea based in London. He is also a full member of the Warsaw Learned Society.

Prof. Kleiber is a member of the Scientific Council of the International Centre for Numerical Methods in Engineering in Barcelona and a member of the International Scientific Committee awarding research scholarships from Microsoft Corporation in Redmond, WA, United States, to outstanding scientist specializing in information science and its applications.

In the years 1998-2001, Prof. Kleiber represented Poland on the Board of Governors of the EU Joint Research Centre and was the Polish delegate to the Sustainable Growth Steering Committee in the Fifth Framework Programme. Between 2001 and 2005 he was minister of science and information technology and head of the Governmental Committee for Offset Contracts. In 2005, he was elected member of the European Research Council in Brussels and chairman of the European Materials Forum in Strasbourg, an organization of European scientific societies dealing with materials science. In 2008-2010, he was a member of the Governing Council Steering Committee of the European Science Foundation in Strasbourg. In 2006-2010, he was an advisor on research and development to the Polish president.

He was also a member of the Council for Education and Scientific Research at the President of Poland • established in 2008.

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Honorary Pearls -

ambassadors for brand Poland The Jury of the Honorary Pearls award Chairman of the Jury: Prof. Janusz Lipkowski, Head of the Department of Physical Chemistry of Supramolecular Complexes Institute of Physical Chemistry Polish Academy of Sciences Prof. Jerzy Buzek,

Chairman of ITRE Committee, former President of the European Parliament and Polish Prime Minister Tadeusz Donocik,

President of the Chamber of Commerce

and Industry in Katowice

Grażyna Jaskuła , Vice-President of Oficyna Wydawnicza Rynek Polski Prof. Ksawery Piwocki,

Honorary Pearls 2006-2013 Honorary Pearls for promoting Polish tradition and patriotic values awarded in 2006 - 2013: Jan Ołdakowski, Ryszard Kaczorowski, Prof. Norman Davies, Tadeusz Mazowiecki, Adam Stefan Zamoyski, Jerzy Woźniak, Franciszek Tomasz Ludwin, György Spiró and Władysław Bartoszewski

former Rector of the Academy of Fine Arts in Warsaw Prof. Andrzej Rottermund

Director of the Royal Castle in Warsaw Adam Szejnfeld

member of the European Parliament Janusz Steinhoff, PhD

former deputy Prime Primer and Minister of the Economy, Chairman of the Council of the Polish Chamber of Commerce Prof. Andrzej Wiszniewski

former Minister of Science and former Rector of the Wrocław University of Technology Krystyna Woźniak- Trzosek, Editor-in-Chief, President of the Rynek Polski Publishers Co. Ltd. Władysław Bartoszewski

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From left: Tadeusz Mazowiecki, Krystyna Woźniak-Trzosek, prof. Michał Kleiber

honor ary pearls

From left: Janusz Steinhoff, Bożena Walter, Ewa Gołębiowska, Małgorzata Walewska, prof. Norman Davies, prof. Jan Lubiński

Honorary Pearls in the Culture category awarded in 2006 - 2013: Wojciech Kilar, Urszula Dudziak, Małgorzata Walewska, Anna Maria Jopek, Łukasz Kuropaczewski, Marek Torzewski, Janusz Olejniczak, Marcin Bronikowski, National Philharmonic Choir, Krystyna Janda, Jerzy Skolimowski, Jacek Sykulski and the Poznań Boys’ Choir, Maryla Rodowicz, Television Theatre, Bernard Ładysz, Jerzy Stuhr, Czesława Frejlich, Jerzy Maksymiuk, Adam Mickiewicz University Choir in Poznań and Prof. Mirosław Bałka

Honorary Pearls in the Applied Arts category awarded in 2010 - 2013: Ewa Gołębiowska, Michał Stefanowski and Adam Spała

Honorary Pearls for promoting social values awarded in 2007 - 2013: Partita music band, Pro-Omnibus Foundation, You Are Not Alone TVN Foundation, Polpharma Scientific Foundation, Jerzy Owsiak, Janina Ochojska, Polsat Foundation, Janusz Sobieraj, Bożena Kazanowska and Jerzy Starak

From left: Adam Stefan Zamoyski, prof. Karol Myśliwiec, prof. Marian Zembala, prof. Ksawery Piwocki, Adam Szejnfeld, Janusz Steinhoff, Janina Ochojska, prof. Jerzy Buzek, Krystyna Woźniak-Trzosek, prof. Michał Kleiber, Grażyna Jaskuła, Marcin Bronikowski, prof. Janusz Lipkowski, Ewa Gołębiowska, prof. Andrzej Rottermund, Tadeusz Donocik

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From left: Adam Szejnfeld, Krystyna Woźniak-Trzosek, Jan Kulczyk, Janusz Steinhoff, Zygmunt Solorz-Żak, Janusz Piechociński

Honorary Pearls in the Economy category awarded in 2006 - 2013: Henryk Strzelecki, Wiesław Rozłucki, Ludwik Sobolewski, Jacek Socha, Janusz Steinhoff, Prof. Maciej Nowicki, Janusz Lewandowski, Prof. Marek Belka, Prof. Zbigniew Hockuba, Paweł Olechnowicz, Herbert Wirth, Zygmunt Solorz-Żak and Jan Kulczyk

Honorary Pearls in the Science category awarded in 2006 - 2013: Prof. Henryk Skarżyński, Prof. Alicja Chybicka, Prof.

Jan Lubiński, Prof. Maria Siemionow, Prof. Bogdan Marciniec, Prof. Karol Myśliwiec, Prof. Marian Zembala, Prof. Witold Rużyłło, Prof. Krzysztof Matyjaszewski, Prof. Marek Krawczyk, Prof. Andrzej Buko, Prof. Bogusław Maciejewski, Prof. Tomasz Dietl and Prof. Stanisław Woś

From left: Krystyna Woźniak-Trzosek, Eugeniusz Grzeszczak, Małgorzata Omilanowska, Janusz Piechociński, Prof. Michał Kleiber, Waldemar Dąbrowski

Special Honorary Pearls awarded in 2008 - 2013:

Jerzy Buzek and Krystyna Woźniak-Trzosek

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National Bank of Poland, Prof. Henryk Skarżyński, Prof. Jerzy Buzek and Waldemar Dąbrowski

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Songs

from heart to heart Maciej Proliński

C

iechocinek, one of the best-known spa towns in Poland, hosts a very special event every year in late July and early August - the Song Festival for Disabled Youth. Called “Artistic Impressions,” it is organized by the Pro-Omnibus Foundation. Eighteen editions of the competition have been held so far. “Polish Market” is a patron of the undertaking and Krystyna Woźniak-Trzosek, president and editor-in-chief of the magazine is head the festival jury.

Marek Michalak, commissioner for children’s rights, was a patron of this year’s festival and graced it with his presence. Present were also local government officials. The laureates of the competition are invited to sing at the annual Pearls of the Polish Economy Gala organized by “Polish Market.” This year, the laureates - Kamil Czeszel, the winner of Grand Prix, and Agata Zakrzewska and Michał Wiśniewski, the joint winners of First Place in the over-16 category – will appear in Warsaw’s Royal Castle on November 7.

The festival in Ciechocinek is the largest event of this kind in Europe. For years it has not only attracted enormous interest from young artists but has also been a great attraction for patients and tourists visiting Ciechocinek and the town’s residents. It has its loyal audiences, who support the young disabled people in their singing with applause. The young people who sing at the festival are disabled but

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exceptionally talented musically. Many of them pay for their successes with great sacrifices, making consistent effort to improve their skills.

There is definitely a huge amount of positive energy at this festival, an energy which comes not only from young persons taking part in the competition but also from people associated with this undertaking. Friendships are made in Ciechocinek and the atmosphere is just fantastic. All those who have ever been present at this festival will always be returning. Quite a few professional artists could learn a lot from these young singers. “Every year we invite entries for the festival,” says Mirosław Satora, president of the Pro-Omnibus Foundation, who was granted “Polish Market’s” Honorary Pearls award in 2007 for promoting social values. “The end of March is the deadline for submitting applications. The application forms are available from many places: the website of our foundation, in the press and on the Internet.

Our goal is to promote genuine talent. And of course, it is a festival, a song competition. And we agree that what we want to prove is that disability is a relative thing. We have two age categories – up to 16 and over 16. Those who want to take part in the festival send us their application forms and their musical proposals recorded on any medium that is available to them. We listen to the submitted recordings and select the most interesting ones to be presented in Ciechocinek.” The awards won at the festival become an inspiration for the young people to develop their talents and to “become completely engrossed in music.”

The festival winners have already appeared many times at the Pearls of the Polish Economy Gala - at the Royal Castle and the Grand Theatre National Opera in Warsaw, places of exceptional importance in Polish culture - always giving a superb performance. It will certainly not be • different this year.

Photos: Maciej Szczurek

There is definitely a huge amount of positive energy at this festival, an energy which comes not only from young persons taking part in the competition but also from people associated with this undertaking.

Participants

Kamil Czeszel

Agata Zakrzewska

Michał Wiśniewski

in the Song Festival for Disabled Youth

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Awards for the best financial

institutions

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obilatum 2014 awards for the best financial institutions in Poland were officially presented on September 29. The awards are granted by the editorial board of “Polish Market.” The editorial board has prepared a questionnaire, in conjunction with the Warsaw School of Economics (SGH), and conducted a survey among businesses and individuals. In late June and early July 2014, the questionnaire was sent to companies from the Pearls of the Polish Economy list, a league table compiled by “Polish Market” for 12 years now.

The Nobilatum award winners are the companies which received the highest marks in the survey. In selecting the best, the editorial board took account of how many times the bank, insurer, insurance broker, or leasing firm had been indicated by those surveyed and how its services had been assessed.

Sańpruch, editor-in-chief of Capital24.tv. Taking part in the debate were: Prof. Małgorzata Zaleska, member of the Board, National Bank of Poland (NBP), who represented the SGH, the honorary patron of the event Alicja Wiecka, executive managing director, SAS Institute, a patron of the event Maciej Woźniak, member of the Supervisory Board, Lampart Detektywi (Lampart Investigations), a patron of the event Aleksandra Łukasiewicz, adviser to the Management Board of Expander Advisers and adviser to the Management Board of the Association of Financial Advisory Firms

Honorary patron of Nobilatum: SGH

Patrons of Nobilatum: SAS Institute, Lampart Detektywi

The Nobilatum 2014 award went to:

Laureates

The Nobilatum 2014 awards and honourable mentions were granted in the following categories: Bank for large enterprises Bank for micro-enterprises Bank for small and medium enterprises Bank for retail clients Life insurer Property insurer Credit union Leasing firm Insurance broker The official awarding ceremony was held in Skwer on Krakowskie Przedmieście Street in Warsaw. The debate “Security of Financial Services” was held as part of the event. The moderator was Tomasz

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Leasing firm: Europejski Fundusz Leasingowy Life insurer: Aviva Towarzystwo Ubezpieczeń na Życie Property insurer: TUiR Warta Insurance broker: AON Polska Credit Union: SKOK Wołomin Bank for retail clients: PKO BP Bank for micro-enterprises: Idea Bank Bank for large enterprises: ING Bank

Honourable mentions: Leasing firm: BZWBK Leasing Life insurer: PZU Życie Property insurer: InterRisk TU Vienna Insurance Group Insurance broker: Gras Savoye Polska Bank for retail clients: Alior Bank Bank for small and medium enterprises: Raiffeisen Polbank Bank for large enterprises: Bank Handlowy w Warszawie

Good service is the most important thing

Marcin Kręglicki, owner of prestigious restaurants (together with his sister Agnieszka), talks to Marcin Haber.

To begin with, I would like to ask you about the attitude of Polish people towards culinary novelties. Are we a people open to new tastes? How has the trend changed since 1989 when you started out?

I will probably surprise you – in 1989 Polish people craved for new tastes. They wanted something more than having only broth, pork chops, sour rye soup and cabbage and meat stew. Some people were already able to go abroad where they had an opportunity to taste Greek, Italian, Spanish or French cuisine. Back in Poland, they wanted to bring these new tastes to their homes, but the right ingredients were still not available on the market. Starting out with a Chinese restaurant, we worked with the Vietnamese who had come to Poland to study. They brought for us from Vietnam cellophane noodles, rice noodles, dried ear fungus and mung bean for sprouts. We made tofu by ourselves. It was a pioneering period because demand was high. None of the restaurants that I opened later paid for itself as quickly as this first one. The Chinese restaurant was a harbinger of something new on the Polish restaurant market. It turned out suddenly that you did not have to be limited to a meat patty with cabbage, but could show something different, something which at the same time was an excellent magnet attracting people. The Chinese restaurant attracted crowds of people. It paid for itself in three or four months. Something like that is no longer possible. At present, competition on the market is very strong and you can find these tastes everywhere. Going to a restaurant means not merely going out to eat something. It also means having a nice time. No one comes to a restaurant alone, just to eat their fill. People usually come in pairs or in groups. Compared to the situation 20 years ago, it is much more difficult to operate a restaurant today pm

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– guests have much more to choose from now while their numbers have not increased that much.

You have started out with a Chinese restaurant. And now you have six restaurants, which serve cuisines from various parts of the world.

This was changing over the 25 years. We had a Spanish and French restaurant, but we still operate two Greek ones, and a Mexican and Italian one. We were known as the owners of ethnic restaurants. One of the journalists coined the saying that if the Kręglickis are returning from holidays there will probably be a new eating place at the market. We followed these diverse new tastes to show them to Polish people. But this ceased to be such a big attraction when Polish people started to go abroad freely and when they started to grow affluent and could afford to travel. Of course, it will always be a pleasure for us to go to a Greek restaurant with friends to talk about our holidays in Greece, past or future, have a look at holiday photos, in the company of Greek cuisine and Greek music. But this no longer is such a strong magnet as in the past, there is nothing special about it anymore. When I wonder what is needed to achieve success on the market now – when sushi is already a bit passé – it seems to me there is less and less room for an instant success. Recently, I have been thinking about a true Argentinean steakhouse, seeing how steakhouses operate today and having seen the great success of the Butchery and Wine restaurant two or three years ago. Several other such places opened later, but there is still no Argentinean steakhouse in Warsaw while it is Argentinean beef that is the best in the world. The atmosphere of such a place is casual, with skins, benches and an open barbecue where the meat is cooked. If combined with Argentinean Malbec, a red wine which goes well with pm

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steaks, and Argentinean tango in the background, this could be a success. However, not on a big scale because this would be a niche.

How would you describe what you offer now? These are cuisines from different parts of the world, but is there any room here for Polish accents?

Yes, absolutely. The cuisines we serve are very distinct and we want them to adhere to their roots, that is Greek, Italian, Mexican cuisine and so on. Except that they have to be better than the original.

We are more Greek than restaurants in Greece. We have a Mexican chef, an Italian chef and are looking for a new Greek chef. We always remember to make sure that what we serve is truly authentic. At the same time, we are opening new restaurants, each with a theme, because an indefinite restaurant will always be less competitive than one which is distinct for some reason. This is where the idea of the Piąta Ćwiartka restaurant has come from. It serves variety meats.

Out of respect for animals, we use here each of their edible parts. pm

Is this an inspiration from Greece?

Yes, Greece has had a big influence on Piąta Ćwiartka. But we also know that in Rome’s district of Trastevere there are restaurants specializing in variety meats. We know that such restaurants can be found in London. Variety meats – kidneys, brains, stomachs, livers and tongues - have always been seen in Poland as dishes suitable for cheap fast-food bars. But this attitude is slowly becoming a thing of the past. To preserve this culinary tradition and use these products, which are available on the market and are very tasty, we have decided to open the Piąta Ćwiartka restaurant. It will be reviving the tradition and showing that recipes for offal dishes can be found in many cuisines.

We also have Opasły Tom, a restaurant which is actually a brainchild of our chef Agata Wojda. As a musicologist by education, she is a bit of an artist and we gave her carte blanche. The way she transfers her sensitivity onto the plate, making it a feast for the eye and palate, is our flagship at the moment. pm

You have been present on the restaurant market for 25 years now. It was a very special period for our country. Do you think there is still room for development and new inspirations? Or do you think that time has come when one should only cherish what has been achieved?

I think there is room on every market for new ideas, and a steady and fast growth. Commitment to the restaurant business means being fully dedicated to it and treating it as one’s passion. From my point of view, if someone does so with full dedication they will certainly succeed. If someone likes the hospitality business, likes people and likes to have guests - I mean service is the most important thing for success in the restaurant business. Also important is food, the atmosphere of the place and its location. There are four factors determining success in the restaurant industry. If someone meets at least three of these conditions and pays special attention to them, with an accent on service, I am convinced they will achieve success.

In contrast, one can hardly achieve success if their service is not perfect in some respect, if it is treated as a secondary issue, and if relations with the staff are not good enough to be translated into positive opinions from the guests.

Have you ever thought: “I have six restaurants, I would like to open more, but I would not be able to control this business”?

At present, the scale of the business is already quite big. Apart from the six restaurants, there is the second arm – catering, which is a very serious activity and could be expanded. We sometimes receive proposals and ideas for opening a new restaurant. But it seems to me it is not the opening of successive restaurants that is important but making sure that the ones you already have are kept to a high standard so as not to lose in this drive for expansion what you have already achieved and what happens to be functioning well.

This is why we are not eager to do something new, but neither do we say “no”. If it turns out that we have a nice and attractive place somewhere for a new restaurant, that the conditions are favourable, that we have the right staff and people with whom to carry out the project we will do so. The choice of people - managers, cooks, waiters, staff members who work with us and whom we have had an opportunity to get to know over the years – is what I consider to be one of my most important successes. Some of these people have been with us since the beginning. Many have progressed along the whole career path to become managers. These people have adopted our philosophy of restaurant service, but also contributed a breath of fresh air and their own way of doing things. The most important thing is the perception “Oh, this is the guy to turn to. He knows how to come and recommend some dishes.” But sometimes this is not enough to satisfy our guests.

We always remember to make sure that what we serve is truly authentic.

pm

pm

Do you think then that there is a limit on the number of projects to which a restaurant owner could be fully committed?

What was the most important event in your career as a restaurant owner? Was it perhaps President Barack Obama’s visit in June this year?

It was certainly a very important event. But I remember that during one of the first visits to Poland by Pope John Paul II we catered for the whole papal entourage. As the Italian restaurant Chianti with an Italian chef, we were taking our food to the curia to feed several dozen people, including the pope. We still have the photos that the pope had taken with our manager and our chef. It was very nice and important for us. Many outstanding guests visited our restaurants but once we entered the catering business it turned out that it offered us so much opportunity to learn and do great things.

The most important event was probably the visit of President Obama and other heads of state in June this year. At the Royal Castle, we served around 500 guests, including the table of the 44 most important VIPs. We are speaking at the moment when the Museum of the History of Polish Jews is being opened. The opening ceremonies will last for three days and we are catering for several hundred people every day. We have been chosen to do so. We prepare kosherfriendly food, because kosher food is not required by everyone. This kind of events stay in the memory forever.

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Success based on promotion

Janusz Rodziewicz, president of the Association of Polish Butchers and Meat Processors (SRWRP), talks to Bożena Skarżyńska.

The year 2014 is drawing to a close. It was not an easy time for the Polish and European meat sector. The recent months have brought an especially great amount of bad news.

The Polish meat sector was hit by at least four embargoes.

The first one is the embargo imposed by the Customs Union (of Russia, Kazakhstan and Belarus – ed.) on all pork meat from the European Union because of cases of African swine fever. The second embargo, very painful to our exporters, is the one imposed for the same reason by third countries. The third one is the Russian embargo on almost all foodstuffs, including all varieties of meet and ready-to-eat products. Luckily, the remaining countries of the Customs Union – Kazakhstan and Belarus, the biggest importer of pork so far – have not joined this embargo.

This is where we see an opportunity for exporters. The fourth embargo is a result of the ban on ritual slaughter in Poland. But a chance to change this disastrous situation has also appeared.

We hope that the parliamentary law banning ritual slaughter will be amended, which will enable resuming meat exports. pm

The association has put great emphasis on the promotion of meat and meat products on new markets.

In the European Union, there is an overproduction of food and the Russian embargo is one of the reasons. This is why it is necessary to look for new markets. Our promotional programme “European Meat – Tradition, Quality, Taste” is targeted at these markets. Let me add that it is now the seventh year that this EU programme has been conducted in third countries.

In connection with the Russian embargo, we are intensifying our activities on Asian and Arab markets. Minister of Agriculture Marek Sawicki has very interesting proposals and has already organized many trade meetings. In their course, we have identified directions in which to go to improve the existing situation. One of them is seeking new markets in third countries together with shopping chains. I am convinced that the integration of the meat sector is a condition for change, also in terms of exports. And the best results may be achieved if we work out pm

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promotional programmes in which not only the meat-processing industry but also several other food sectors will be taking part.

However, your basic task is promoting meat products on the domestic market. This year’s summer abounded in mass promotional events.

I have to admit that these were exceptionally creative and busy months for the association. We carried out big and smaller campaigns, like for example “Meat from Pomerania. A Feast at Neptune’s” in Gdańsk, “Holiday Cuisine with Pork” in Kołobrzeg, Świetomięs in Lublin, “Get down to Eating Beef” in several Polish cities, “Meat Arena” in Zielona Góra, “Presidential Harvest Festival” in Spała and many other smaller events. The campaigns were subsidized from Meat Promotion Funds. They included culinary shows and tastings of dishes prepared from various kinds of meat, lectures given by specialists on the value of meat and the meat-based diet, and numerous attractions and stage shows by well-known bands and artists. pm

Promotion is the main task of the association. Another one is education. Several conferences and training workshops were held this year. Do you still carry out these tasks?

In summer, we initiated a series of training courses in small meat-processing businesses in the region of Pomerania for the managerial staff and workers responsible for production and sales. The programme is partially funded by the European Union from the European Social Fund. The programme will be completed in May 2015. pm

Will next year be equally rich in your promotional events in Poland and abroad and training meetings for your members?

We will certainly not change this course of activities. We will be expanding the campaigns we have carried out so far and adding new events in Poland, on the EU market and in third • countries. pm

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Polish Ecology grows in strength T

Maciej Bartoń

he Polish market for organic products is growing very rapidly – at an annual rate of around 20%. Analysts project that in less than 10 years the market will be worth EUR750 million. The organic food market is the fastest expanding sector of food production in the world. Its expansion is driven by the growing affluence of societies, and consumers’ increased awareness about food quality and safety, and the impact of food on human health.

Demand for organic food has been growing consistently for 20 years due to positive consumer trends as a result of consumers’

The quality of organic food is the key source of its competitive edge over food produced by conventional methods. growing awareness and focus on quality. The quality of organic food is the key source of its competitive edge over food produced by conventional methods.

Organic farming is one of the world’s fastest expanding agricultural sectors, especially in the European Union. In recent years, Poland witnessed a steady growth in agricultural land held by organic farms and their number. The development of the organic farming sector is also reflected in the number of

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food-processing plants and the range of organic products available on the market. According to data for December 31, 2014, Poland had 27,000 certified producers of organic food, including 26,600 farms occupying almost 670,000 hectares. Compared to the end of 2012, the area of the land increased by around 1% and the number of farms by around 3%. In 2013, there were more than 400 organic food processors in Poland.

Polish organic food exports are also growing every year.

When looking for trade partners it is worth contacting associations, which bring together many organic food producers. The Polish Ecology Association is one of the dynamic organizations which support organic farming in Poland. The main goal of the association is the development and promotion of Polish organic food. One method for doing so is active participation in national and international fairs, including BioFach, the world’s largest trade fair for organic food. The product line offered by the Polish Ecology Association is very wide, ranging from breads, cakes, flours and grouts to juices, deep-frozen products, jams, meat and cured meats. It is worthwhile to emphasize the originality of the products offered by Polish Ecology. The association brings together producers from across Poland. Their products reflect what is special about the regions they come from and what sets them apart from others. Additionally, every member of the association cares about the quality of the products they offer.

The Polish Ecology Association has submitted to the European Commission its organic food promotion programme, “EkoEuropa – Quality and Tradition.” The target markets for the promotional campaign will be Japan, Singapore and the United States. We hope that Polish organic food will soon enter these markets.

To learn more see the website www.polskaekologia.org. Polish organic food means not only the highest value for money but also care about health and discovering a unique taste. •

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Nasza branża to ludzie 70% produkcji Teva w Polsce trafia na rynki eksportowe

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November 2014 polish market

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