Polish Market No. 11 (194) 2012 by Polish Market

Polish Market :: 11/2012

PUBLISHED since 1996 No. 11 (194) 2012 :: www.polishmarket.com.pl

Contents

11/2012

From The President’s Press Office # 6

From The Government Information Centre # 7

Our Guest / PearLs of the Polish economy

Waldemar Pawlak, Deputy Prime Minister and the Minister of theEconomy. # 8

prof. Michał Kleiber, President of the Polish Academy of Sciences; To achieve international success # 8

PearLs of the Polish economy

Prof. Zbigniew Hockuba, Director for Poland/Bulgaria/ Albania at the European Bank for Reconstruction and Development, Polish economy comes out well # 17

Ten years of the Pearls of the Polish Economy

Krystyna Woźniak-Trzosek, Editor-in-Chief of “Polish Market”, Ten years of success # 20

Grand Pearls of the Polish Economy 2012

# 21

Large Pearls of the Polish Economy 2012

# 24

# 18

honorary pearls

Prof. Janusz Lipkowski, Chairman of the Jury; The Honorary Pearls of “Polish Market” # 30

Adam Szejnfeld, Member of Parliament Member of the “Pearls’” Jury, Beautiful people # 31

Maciej Proliński, Honorary Pearls – the personages of Poland’s social life Innovation PROGRESS 2012 # 32

Prof. Jerzy Buzek; Promoting Polish economy # 10

Innovation progress 2012

Piotr Woźniak, Undersecretary of State at the Ministry of the Environment, Chief State Geologist; Driving force of Polish industry # 10

Janusz Lewandowski, Commissioner for Financial Programming and Budget of the European Commission; Brussels provides the big picture # 11

Janusz Steinhoff, Ph.D., former deputy Prime Minister and former Minister of the Economy; Energy policy must be updated # 12

Prof. Maciej Nowicki, Honorary Pearls in economy 2009, Economy and environmental protection – allies or enemies? # 14

Prof. Leszek Jasiński – Director of the Institute of Economics of the Polish Academy of Sciences, Search for Pearls of the Polish Economy # 16

Prof. Jan Macieja, Polish Academy of Sciences, The Pearls’ selection criteria the most important microeconomic engines of economic growth # 16

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Prof. Leszek Rafalski, Director of the Road and Bridge Research Institute, President of the Main Council of the Research Institutes, Catching up or leaping towards innovation? # 36 Innovation PROGRESS 2012

# 37

Jerzy Majchrzak, Director of the Department of Innovation and Industry at the Ministry of the Economy, Supporting new technologies # 38

innovation

Maciej Proliński, SAS Forum 2012 Innovation in Business #44

Jerzy Bojanowicz, Waiting for speeds of 30Mbps and above #50

Bogdan Sadecki, Rapid growth of Polish IT market #56

energy

Maciej Proliński, Plans for development of Polish energy #58

Contents shale gas

finance

Shale gas – the problem of extractability

# 62

global market The world of Polish copper

# 64

Polish Market Round Table

green economy

Prof. Małgorzata Zaleska, a Board member of the National Bank of Poland, Professor at the Department of Banking Warsaw School of Economics, and Vice President of the Committee on Financial Services Polish Academy of Sciences; Importance of financial education # 84

Cezary Tomasz Szyjko, Local energy marketin a run-up to a “soft revolution” # 66

Alternative investment

# 92

International relations commercial real estate

Łukasz Lorencki, Consultant, Capital Market Group, Cushman & Wakefield, Commercial real estate investment market in Poland #72

Libyan chargé d’affaires Bashir Abudher, Closer than ever # 94

Maciej Proliński, Neighbour ‘s talks

# 96

warsaw investments

Warsaw – the leading Eastern-European city in terms of development! # 76

invest in poland

Artur Radwan, President of the Management Board of Koleje Mazowieckie, Railways - more than a passion # 80

Special economic zones issue new licences to investors # 98

Piotr Wojaczek, President of the Katowice Special Economic Zone, talks to “Polish Market”, Successful in promotion # 100

infrastructure

Bogdan Sadecki, Polish roads before and after EURO 2012 - Infrastructure # 82

Culture Cultural Monitor

law

Natalia Kabacińska, lawyer at Chmaj & Partners., Who will benefit from the Common European Sales Law? # 85

Maciej Proliński; Girls with a Pearl Earring

Contributors: Magdalena Szwed, Bogdan Sadecki, Agnieszka Turakiewicz

President: Krystyna Woźniak-Trzosek

Columnists: Małgorzata Zaleska, Maja Sujkowska, Chałas & Partners

Address: ul. Elektoralna 13, 00-137 Warsaw, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: info@polishmarket.com.pl Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl Writers/Editors: Maciej Proliński, Jan Sosna, Sylwia WesołowskaBetkier, Grażyna Śleszyńska, Janusz Korzeń, Jerzy Bojanowicz, Janusz Turakiewicz

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Aleksander Ładysz, a Polish singer endowed with a fine bass voice, The audience is the priority # 104

Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. (RYNEK POLSKI Publishers Co. Ltd.)

Vice-Presidents: Błażej Grabowski, Grażyna Jaskuła

# 102

Photographers: Jan Balana, Łukasz Giersz, Rafał Nowak Polish Market Online Editor-in-Chief: Wiktoria Grabowska Sales: Phone (+48 22) 620 38 34, 654 95 77 Natalia Suhoveeva natalia.s@polishmarket.com.pl Anna Tywonek anna.tywonek@polishmarket.com.pl Public Relations: Joanna Fijałkowska j_fijalkowska@polishmarket.com.pl

# 106

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Editorial

The Polish economy is slowing down sharply. In September 2012, industrial production fell in 27 branches of the economy and rose only in 7, all-in-all decreasing by 5.2% year on year. And it had seemed we can avoid this – the last production slump in Poland came in autumn 2009, when the global tsunami caused by the collapse of Lehman Brothers did not fail to graze our economy. Once more, however, there is no reason to panic. The annual GDP growth remains undaunted and there is no recession looming in next year’s forecasts. It is clearly a slowdown in demand. The recession in the EU makes the demand for Polish exports lower – this is obvious. The stricter credit policy on the part of European banks, introducing general corporate regulations without taking account of the better standing of their Polish daughter companies, is also contributing to lower internal demand, as regards both consumer credit and home-mortgage loans for individuals, and investment loans for companies. The latter coincided with the completion of public projects connected with the European Football Championship, the third-most-popular global event. The picture is bright in the study conducted in September by the National Bank of Poland (NBP) among 1316 companies representing all the sectors of the economy. According to this, the condition of businesses in the third quarter of this year was similar to the one observed over the last three years. What’s more, their ability to settle liabilities increased. And the “last three years” are seen as a good time for Polish companies. The “Prognozy i Opinie” (Forecasts and Opinions) journal published by the Institute of Economics of the Polish Academy of Sciences (INE PAN) even considers 2011 exceptionally good – free of problems with investment self-financing, and with a high level of liquidity indicators. The response to the emergence in 2012 of an output gap, the increase in stocks, and also the rising prices of raw materials, was that the companies restricted their production and investment plans, raised their prices (which allowed them to maintain the nominal income increase), but it saved neither cost level nor profitability indicators. If we exclude from these considerations the construction sector – as a special case of recession – the group of big companies which are crucial to the economy are “sitting it out”, looking for more specific forecasts. What are the signals reaching Polish businesses? It is yet another quarter in a row which has seen a growing pessimism in expectations and short-term forecasts, including, in particular, the demand for products and services. As a result, once more we are going through a quarter of more and more restricted development plans among enterprises. As for exporters (excluding the automotive industry), they are enjoying a little bit more optimism. After all, the German economy is still on the rise – even if not so much as before

– and it is our biggest trade partner. The geographical structure of our exports is slowly changing to give way to more dynamic relations with the countries of Central and Eastern Europe (a 27.4% rise in the first half of this year) and those outside Europe. More and more often, particularly with regard to the Far East, there are signals of the decreasing competitive edge of their production arising from lower costs. Also, the flexibility of Polish monetary policy is contributing to the increased competitiveness of our exports. As for the companies dependent on the internal market, what are they to wait for? The State cannot support them with fiscal expansion, as this has been used to defend them from the first wave of the crisis, and the State budget today must consistently reduce the debt to protect its own credibility. Some support may be expected from the NBP, whose Monetary Policy Council determined that inflation is going to gradually decrease in the coming quarters – if the recession is confirmed to last longer, it will make its monetary policy less restrictive. The most important assistance to the subdued optimists, however, may only come from reliable information about the continuation of major public projects. The first step has been taken – October brought us “the Government’s decade of investment plans”. First the Prime Minister, and then, day after day, the ministers spoke about their specific plans in their respective sectors of utility or social infrastructure. They also outlined the financing mechanisms to be deployed. If they prove to be real and the Government and enterprises are able to draw conclusions from certain past projects which turned out to be unsuccessful, then we are about to begin a period of intensive investments in the sectors of energy, transport, and telecommunications, including the results of the R&D sector’s extension. Can we take advantage of these new Polish chances? Will we ever really get them? The first answers are due very soon, as a substantial part of the projects depends on EU co-financing in the 2014-20 financial perspective. The current negotiations are far from simple, and the answer to whether the Governments of the EU Member States still see Poland as a driver of European economic growth is not that obvious at all. Even if there are not too many rivals who aspire to this role. If we get the green light, it is all in our hands, and Poland has never failed when Europe was going through a difficult time. ::

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

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Polish-Swiss economic cooperation

Bronisław Komorowski and the Prince of Monaco, Albert II

Visit by the Royal Couple of Monaco President Bronisław Komorowski and the Prince of Monaco, Albert II, on his visit to Poland, discussed, mutual relations, the situation in the region, and the contribution of both countries to the processes of promoting democracy in North Africa States, particularly in Tunisia. The visit of Prince Albert II and Princess Charlène to Poland started with an official reception ceremony held in front of the Presidential Palace. The guests were greeted by President Bronisław Komorowski and his wife Anna Komorowska. “When discussing the current situation in the region we have noticed how Monaco and Poland share particular involvement in the processes supporting democracy in the North Africa, with a particular attention to Tunisia,” commented Mr Komorowski. I wish to express hope that we will arrive at such a formula that will allow us to mutually support our individual actions for the benefit of Tunisia and democracy in general,” the President stressed. Prince Albert II expressed satisfaction that he had the opportunity as the Head of the Principality of Monaco to make his first official visit to Poland. Refering to historical events, he said that for many years Poland had to face some very serious challenges. ”However,” said the Prince, “even under those adverse circumstances, the people of Poland never lost their strength and courage. And they were always ready to confront any hardship. We can only look up to the testimony given by Poland to the whole world throughout its history,” underlined Prince Albert II. Nonetheless, nowadays we need to focus our efforts on our common future,” he stated. The Prince also said that the Principality of Monaco and Poland share common values and goals in a number of critical areas. Among some other things, he mentioned Polish involvement in European organisations, and the economic performance of Poland in the face of the European economic crisis. He also brought up the issue of the natural environment and renewable energy sources, vital for both countries. In conclusion, he added that in the harsh times of the economic slowdown, Poland proved its capacity for mobilising the available resources and its aptitude for learning and introducing innovative measures. ::

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“Cooperation between Poland and Switzerland should be based on the economy,” said President Bronisław Komorowski in Bern. This cooperation is rich with potential that can be utilised for the benefit of Europe and the whole international community, he added. The President, together with his wife, Mrs Anna Komorowska, was on an official visit to Switzerland. The first point on their agenda was the opening of an economic forum for the Polish investment market in Zurich. Later, the President headed to Bern, where he attended a meeting with the Federal Council, i.e. the Swiss Government. “Today, the foundation for cooperation and friendship between the states and peoples (of Poland and Switzerland) may and should be on economic grounds,” said Mr Komorowski, addressing the Federal Council. “We are happy that Switzerland, a country with such strong attachment to its sovereignty, and, at the same time, so proud of its heritage of developing its federal political structures, is involved in close and intensive relations with the EU and its

Member States, including Poland,” stated the President. Bronisław Komorowski expressed his conviction that the cooperation between Poland and Switzerland, “based on solid foundations, historical experience, and principled choices,” shows a considerable potential that could be used both for the benefit of Europe and the whole international community. He also noted that Switzerland ranks third among the crucial economic partners of the EU, immediately after the US, outranking such powers as Russia and Japan. The President of the Swiss Confederation and the President of the Federal Council, Eveline WidmerSchlumpf, stressed that Poland and Switzerland have much more in common than only their national colours. She expressed satisfaction that recent years have seen substantial growth and intensification in the relations between our countries, also in economic aspects. She also remarked that they had met President Komorowski before, for instance at the World Economic Forum in Davos. ::

President Komorowski in Switzerland

Meeting with former President of France former President of France Valery Giscard d’Estaing has visited Warsaw to promote his new book “The Victory of the Grand Army”. He met President Bronisław Komorowski in the Belweder Palace. Their conversations revolved around the future of European integration. The former French President used to be the President of the Convention on the Future of the European Union, responsible for devising the draft Treaty on the establishment of the EU Constitution. The book entitled “The Victory of the Grand Army” by this French politician narrates an alternative turn of history and describes the victory of Napoleon over Russia in the War of 1812. The former French President remarked that the Polish nation was the second most prominent group in Napoleon’s army after the French, and that his book pictures Poland as a country that benefited the most from the Napoleonic conquests. ::

Donald Tusk during the Congress of the European People’s Party

In Bratislava, Prime Minister Donald Tusk met the Presidents of the European Commission and of the European Parliament, as well as the heads of government and representatives of several EU countries. The talks covered, the role of cohesion policy in creating jobs and supporting economic growth. The Friends of Cohesion Policy Group comprises countries which advocate the preservation or extension of the role of the cohesion policy in the new EU budget currently drafted for the years 2014-2020. In the declaration adopted at the meeting, the guests underlined that the cohesion policy constitutes “a driving force behind EU economic growth and an instrument for the support of investment and the creation of new jobs at the EU level, as well as structural reforms at the national level. This offers a good opportunity both for the less-developed regions of the Community and EU beneficiaries”. “The Cohesion Policy, or simply those billions, hundreds of billions, of euro usually invested directly in the infrastructure (…) is the EU’s most effective tool for growth stimulation,” PM Tusk had said during the previous, Budapest meeting of the Friends of Cohesion Policy Group. Poland leads in the leveraging of EU funding – under the 2007-2013 Financial Perspective the country has received EUR 32 billion, while Spain EUR16 billion and Germany EUR13 billion. ::

Photos: Maciej Śmiarowski/KPRM

The Friends of Cohesion Policy Group

The congress of the European People’s Party “Do not let hypocrisy prevail in Europe, do not let Europe become an empty slogan,” appealed PM Donald Tusk, during the congress of the European People’s Party (EPP), held in Bucharest. During his visit to Romania, the Prime Minister stated that one of the greatest threats currently faced by Europe is hypocrisy, which manifests itself in, for instance, one day politicians demanding “more Europe”, while the next day they advocate a decrease in the European budget or a division of the EU between the existing and future eurozone members. “Hypocrisy occurs – and I believe Romanians are especially aware of this – when the same politician says ‘more Europe’, and on the next day opposes the idea of all European States joining the Schengen Area,” stressed Donald Tusk. ::

Prime Minister Tusk at the EU Summit in Brussels

The PM talks about nuclear energy during his visit to Finland

Prime Minister Donald Tusk attended a session of the European Council in Brussels. The main topic of this two-day Summit was the strengthening of the eurozone, through joint banking supervision.

Among the issues discussed by Donald Tusk and Finnish PM Jyrki Katainen were the current situation in the eurozone and bilateral cooperation. Also addressed was the partnership within the Baltic Sea region. Donald Tusk found the power industry, and nuclear energy in particular, to be one of the central topics of the talks and the entire visit. “I am looking forward to our cooperation and the opportunity to take advantage of Finland’s experience in project and human resources management, which is required for such a project, and also with regard to technologies and environmental safety,” said the PM. “Our collaboration in respect of renewable energy is also highly promising,” he added

“Financial supervision must guarantee the same rights and obligations to all involved parties, including those from outside the eurozone,” said Prime Minister before the Summit. He added that without clear rules that would provide equal rights and obligations, it will be difficult to decide on any coherent concept. Donald Tusk also addressed the potential budget of the eurozone, concluding that it would not actually be a proper budget. “It is some kind of mechanism serving as a source of aid funds for the States which are fighting the crisis. As of today, however, none of us would be inclined to treat the eurozone budget as an alternative to the actual European budget,” stressed the Prime Minister. Prior to the EU Summit, Mr Tusk met in Brussels Martin Schulz, the President of the European Parliament, and participated in a discussion between the Prime Ministers from the Visegrád Group. Mr Tusk stated that his meetings with the head of the European Parliament, held before the EU Summit, have become a fine tradition. He also emphasised that Poland is trying to form a wide coalition of allies to mobilise sufficiently -large funds for cohesion policy. ::

“Finland, Poland and other States from the Baltic Sea region are becoming a pole of growth and innovation and an area with the most prospects ahead,“ said the Prime Minister, noting that both Poland and Finland derive increasing satisfaction from the partnership within the Baltic Sea basin. At the press conference, the Finnish PM declared the strengthening of bonds between the two countries and announced visits to Poland of four or five of his Ministers. He also underlined the importance of cooperation within the Baltic Sea region and Polish-Finnish partnership in the power sector, especially renewable, biomass and nuclear energy. ::

Meeting with Finnish PM, Jyrki Katainen

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Our Guest

Honorary Patrons of the Gala of the Pearls of the Polish Economy

Pearls of the Polish Economy Remark by deputy Prime Minister and Minister of the Economy Waldemar Pawlak on the 10th anniversary of the Pearls of the Polish Economy ranking of the “Polish Market” magazine.

Polish Economy title – the Pearls are picked by a computer on the basis of an algorithm developed by INE PAN and data submitted by companies. This is how the jury identifies the Grand Pearls and Large Pearls. The ranking highlights the most efficient companies, which may be called the driving forces behind the Polish economy. The companies stand out against their competition on the market in terms of growth, liquidity, profitability, sales and labour efficiency. They are giants, with annual sales of at least PLN100 million or over PLN1 billion. Being awarded the Pearls of the Polish Economy title is a signal for consumers that they have to do with a reliable and efficient company.

This year, the true Pearls of the Polish Economy have been identified for the 10th time. This ranking of the most efficient companies, which perform excellently on the market, has become an economic barometer. I am happy about this initiative and hope that it will be successfully continued in coming years. I wish to thank “Polish Market” and the Institute of Economics of the Polish Academy of Sciences for the research on the condition of Polish companies they have conducted since 2003. The annual Pearls of the Polish Economy ranking shows the findings of this research. Objective criteria are used to award the prestigious Pearls of the

I sincerely congratulate this year’s laureates of this prestigious award and wish them further success. I would also like to express my respect for the winners of Honorary Pearls, a title awarded to outstanding personalities in the fields of science, culture and economy. ::

To achieve international success Remark by prof. Michał Kleiber, President of the Polish Academy of Sciences (PAN).

The success of activities undertaken in the economic sphere depends - to a larger extent than is popularly thought - on the image that a given sector has or is acquiring abroad. Scientific research is no exception. Just the contrary – it is a very good example. Future success depends on what image we will be building for Polish scientists. Readiness to enter into agreements on scientific cooperation and to start innovative undertakings depends on the reputation Polish scientists have among their foreign colleagues and prospective partners. The whole activity of “Polish Market” serves this purpose. And the category of Honorary Pearls, which

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are granted annually to outstanding personalities in the fields of culture and science, definitely contributes to promoting Polish science. Building Poland’s image by showing the achievements of individual people is a very effective method to promote Poland as a modern country. Future success depends on what image Polish science has managed to build for itself. “Polish Market” also contributes to promoting innovative firms. The matter-of-fact and attractive promotion of Polish innovative firms will determine their future international success. And innovative firms have to achieve international success because we now live in a globalized society. ::

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Pearls of the Polish Economy

Promoting Polish economy Prof. Jerzy Buzek was decorated with the Special Honorary Pearl in 2011.

Over the last dozen or so years, all of us - all of Poland have come a long way. Often, this road was steep and winding. However, we believed that it was worth following this road. When I was starting accession negotiations with the European Union, as Prime Minister of the Polish government, in 1998, “Polish Market” had already been promoting Polish economy, culture, and science for two years. While being an important source of information for foreign investors, it also created a positive image of Poland and Poles – in Europe and around the world. Today, Poland has assumed the place it deserves in the European Union and in NATO and is in the small group of countries that have most effectively resisted the economic crisis. This is the effect of the efforts and work of many people - operating on various levels and in different fields, but always with the thought of Poland in mind. One such company is certainly the publisher of “Polish Market,” which celebrated the XV-year anniversary of the magazine last year. I wish the “Polish Market” staff and collaborators further success in the role of ambassador for the Polish economy. ::

Driving force of Polish industry Piotr Woźniak, Undersecretary of State at the Ministry of the Environment, Chief State Geologist, comments on the role of the “Pearls of the Polish Economy” ranking.

The “Pearls of the Polish Economy” ranking, referred to as the barometer of the Polish economy, confirms the good condition of our enterprises – they are rapidly developing, open to new challenges and ready to cooperate with foreign partners. This is the attitude our contemporary Polish economy needs, and I am glad to see the image of Poland as an enterprising country making its way in Europe and the world. As the deputy Minister of the Environment and the Chief State Geologist I would like to give special emphasis to the enormous contribution to the Polish economy of the exploration and

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mining-sector companies, which are currently looking for shale gas. Their investments are stimulating competition on the Polish gas market, which in the long term will bring down the price of this resource. I am convinced that under the current market conditions, the Polish companies’ consistent action and focus on expansion, also on foreign markets, will yield results and will be recognized. I hope that the title of “Pearl of the Polish Economy”, as well as participation in the contest and

presence on the list of candidates, will be an encouragement for the Polish businesses for further effective growth, bringing positive results for the Polish economy. Finally, on the occasion of the ranking’s 10th anniversary, I wish the organizers – the “Polish Market” editorial board and the Institute of Economics of the Polish Academy of Sciences –many more years of fruitful endeavours, while providing further motivation for Polish companies to act and become the driving force behind Polish industry. ::

Piotr Woźniak, Undersecretary of State at the Ministry of the Environment, Chief State Geologist

Pearls of the Polish Economy

Brussels provides the big picture Janusz Lewandowski, Commissioner for Financial Programming and Budget of the European Commission

Honorary Pearl in 2010,

category economy

Internal domestic problems are fading away, bringing out the weaknesses and strengths of individual states within the EU landscape. From the perspective of Brussels, one can see and appreciate the big picture of how the perception of Poland has improved over the years – once persistently considered as a problem child, today it epitomises a successful country. This is especially evident to someone who, like myself, remembers the stereotypes about Poland that once used to be commonplace – for example, the derogatory term of Polnische Wirtschaft (the Polish Economy – coined and perpetuated by the Germans, the term was associated with incompetence and backwardness). And it is not the government that deserves credit for this incredible transformation of Poland’s image, but the Polish people as a whole. If, however, we were to name what has been the major contributor to this development, then it would definitely be the entrepreneurship of the Poles! It is in this area we have seen the largest breakthrough, since Poland’s main concern at the outset of the transformation was its economy.

The big question was whether the brave Poles, having peacefully brought down the Communist government, would be equally adroit in building a free-market economy. As if to crush the prejudice and render the unfair stereotypes irrelevant, the Poles showed what they had got, proving they had both the potential and the ability! Out of the 27 EU member states, Poland is the only one to have not idled away a single year since embarking on reforms. As inconsistent the pace of the reforms may be, we nonetheless keep moving forward! Having defied the 2009 economic crisis to spark international recognition and admiration, Poland no longer needed to be on its way up to changing the country’s imJanusz Lewandowski (born 1951) is an economist and politiage, as the image had already cian. He holds a Ph.D. in economics. He served as an economic adchanged in a largely positive visor to “Solidarity” in 1980 – 1989. He was the minister of privatway. This fact, in turn, put Poland in a stronger position ization in 1990-93, when he participated in creating the Warsaw within the EU and gave rise Stock Exchange and developed the privatization plan. He was a to more foreign investment in Member of European Parliament in 2004 to 2010 until he was apour country. pointed as the UE Commissioner for Financial Programming and Budget in February 2010.

Foreign capital and know-how has helped Poland advance economically, and so have the EU funds, which Poland has received over several years and has made a good use of. What is pleasing to see is that, for some time already, Poland has been more oriented towards becoming an investor itself, rather than just a target for investment. Poles succeed in foreign markets and pursue investments in the countries to the West. Recently, I participated the US-Poland Business Week in New York, where I saw the figures related to Polish investment in the United States. Although these have been small as yet, they are symptomatic of things to come, of an emerging new quality in Poland’s relations with the largest economies of the world. I do not underestimate the challenges that our country is facing in crisis-stricken Europe. However, I do believe that the tough time of reforms it managed to endure made it stronger and therefore capable to deal with the current situation as well. Our entrepreneurs, absorbed by their everyday efforts in coping with difficult economic realities, surely deserve an occasional time-out to celebrate their achievements. The Pearls of the Polish Economy Gala will provide a perfect opportunity to reward and motivate them. Being among the 2010 prize-winners, I wish the best of luck to all the laureates of this year’s edition! ::

Poland has been more oriented towards becoming an investor itself, rather than just a target for investment. Poles succeed in foreign markets and pursue investments in the countries to the West. 11 /2012 :: polish market :: 11

Pearls of the Polish Economy

Energy policy must be updated Janusz Steinhoff, Ph.D., former deputy Prime Minister and former Minister of the Economy

Honorary Pearl in 2008,

category economy

The global economic crisis, including the need to restructure a number of eurozone economies and to tackle the projected slowdown in Poland’s growth, makes it necessary to reconsider the energy policy. The ongoing debate has resulted in new energy-related law proposals and a demand to revise the government’s policy paper entitled “Poland’s Energy Policy until 2030”. The key guideline of this strategic document is to diversify energy sources by breaking an over 90% dependence on solid fossil fuels - coal and lignite. The diversification will be possible thanks to an 8% share of nuclear energy (7,000 MW), and a similar share of renewable energy in the energy mix. However, what will have the actual impact on the energy mix is the cost structure connected with the acquisition of energy carriers, which leaves many unknowns. We do not know, for example, how the gas sector will evolve, what the price of gas will be in Europe and in the world, what the future of the shale gas will be. Nevertheless, the process of diversifying energy sources will be continued, for the sake of

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environmental considerations and the country’s energy security. I am not opposed to environmental protection. On the contrary, I believe this is one of the major challenges for humanity. If I am critical of the EU Climate and Energy Package, it is because of the failure of the consecutive conferences held in Copenhagen, Cancun and Durban. I do understand that environmental protection generates costs, but these costs are expected to translate into certain results. Given that other countries have not adopted the measures proposed by the EU, they will be implemented at the European level only, which is unlikely to produce a worldwide effect other than the reallocation of emissions. Reducing greenhouse gas emissions is a global challenge, and as such it can only be tackled globally. Another issue is the functioning of the mechanism of competition when economies are based on uniform standards, especially with regard to environmental protection and employment. If these standards are violated, we have to reckon with a dark scenario, as pointed out recently by the EU energy commissioner Günther Oettinger. He namely warned that the EU member states will see their energy-intensive industries emigrate to the countries that have not adopted such stringent carbon dioxide emissions standards. Global emissions will not get reduced, and a negative economic effect will be painful for the European economies. Personally, I think that focusing now on the Climate and Energy Package and accelerating the adoption of its new version is definitely the wrong choice. First, we should implement the 3rd EU Energy Package in order to achieve synergy and increase Europe’s energy security, and then we can get on with the implementation of the Climate and Energy Package, which is a very expensive project, heavy in consequences for the European economy, and especially for its competitiveness. The third aspect of the Climate and Energy Package is its impact on the energy mix. Saying that from a technical point of view, the problem with power plants based on coal, oil, natural gas or biomass has been solved is an intellectual abuse. Today we know that the

CCS installations could be cost-effective only with carbon dioxide allowances priced at over EUR60 per tonne, that no country in the world has so far managed to go beyond the stage of a 30MW pilot plant, and that geological problems related to depositing carbon dioxide underground remain unsolved. So what are the real solutions? The easiest one - but requiring large outlays - is to increase the efficiency of our electricity sector. And there is much to be done in this field. Most of Polish power plants have efficiencies of less than 40%. We should therefore build such generating units as the one recently commissioned in Bełchatów, with an efficiency of above 45%. Demand for investments is all the greater as these are needed not only in power generation, but also in its distribution and transmission. New generation capacities will require the development of adequate transmission lines. And much of the existing transmission infrastructure is obsolete – the PSE Operator company will have to spend on its modernization PLN2.5 billion. If we talk about the energy market in Europe, it is also necessary to expand the cross-border networks. The 3rd Energy Package, geared to improve the EU energy security, puts an emphasis on this. In the face of this scale of investment needs, the question arises of whether, in times of crisis, the EU should not revise the adopted policy on emissions reduction, as its postponement would perhaps make it easier for all the European countries to comply with its requirements. ::

Pearls of the Polish Economy

Economy and environmental protection – allies or enemies? Honorary Pearl in 2009, category economy. Maciej Nowicki

Former f Minister of the Environment in the cabinet of Donald Tusk (from 16 November 2007 to 1 February 2010)

Many discussions conducted by politicians, economists or journalists present two extreme views on the role of environmental protection in the social and economic development of Poland. Some claim that, although environmental protection is necessary, only well-off countries can afford it. In other words, we will be protecting the environment once we get richer. Others, on the other hand, believe that disobeying environmental protection rules causes health-related and financial losses to society at large, losses which are great enough to hamper the country’s economic development. Therefore, if we do not care about the environment, we will never become wealthy. In my opinion, only the second approach is appropriate. Under communist rule, we had an opportunity to find out for ourselves about the consequences of a system promoting economic development without paying attention to environmental protection, where the steaming factory chimneys were the symbol of progress. According to the assessments made by economists, in the 1980s environmental pollution caused financial losses in national terms amounting to 5-10% of the national income, excluding intangible health losses, and reduced the lifespan of hundreds of thousands of people. Fortunately, this system is now history and for over 20 years Poland has been a democratic country with a market economy, in which the industrial sector is no longer centrally controlled. The state creates legal norms for business activity and enforces law and order, also in terms of maintaining environmental protection standards by enterprises. It is natural that a conflict of interest may appear at this stage, as there is a clash of the microeconomic thinking of the profit-oriented entrepreneur with the macroeconomic approach, taking into consideration the benefits for the region or the country related to a clean environment. However, these two approaches often converge. This happens when businesses take actions “at the beginning of the pipeline”, such as the modernization of manufacturing lines leading to energy savings and reducing the amount of waste by closing water circulation in industrial plants. These measures evidently contribute to enhancing the competitiveness of enterprises and are beneficial for the environment. Apart from that, actions “at the end of the pipeline” are also necessary, such as the construction of waste-treatment plants or appliances reducing flue gas emissions. For the entrepreneur, their construction and operation mean

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an increase in production costs. However, these installations are necessary due to considerations related to human health and the state of the natural environment. In these cases, compliance with environmental standards must be enforced by government bodies. They act on behalf of society as a whole by issuing permits for the new projects which may have an impact on the state of the environment and human health. Unfortunately, in Poland, as opposed to many other countries, the fact that the environmental-protection sector has recently become one of the crucial economic sectors does not receive sufficient attention. Every year investments in environmental protection amount to several billion zlotys, and the construction and operation of these installations is a source of employment for thousands of people. The lack of informed state policy supporting the development of environmental protection is the reason why Polish industry still has little to offer in this respect, despite large-scale projects carried out in this country. The best example is the energy sector. In Poland we have very liberal standards concerning the required thermal insulation of buildings. It would suffice to make the standards stricter in order to increase the level of trade on the market for construction materials and on the labour market. This simple legislative step would result in a significant reduction in energy use by buildings, which means money savings for their residents, and a reduction in environmental pollution related to energy generation. Another example is stimulating the development of renewable energy sources (RES). By giving them legal privileges, we would enable a fast growth in demand for systems producing clean energy from water, wind, biomass and the sun. Consequently, a market would be created for producers of these systems, mainly small and mediumsized businesses. After all, distributed power generation based on free-of-charge or indigenous energy sources improves the country’s energy security and, simultaneously, is the most radical form of environmental protection in the power sector. The example of Germany shows how much can be achieved in this area. 360,000 people in Germany are employed in the RES sector, while the powerful car industry gives jobs to only 220,000 people. As early as in 2020, 35% of energy in Germany should be produced from renewable sources, and the sector has become (similar to Denmark, for example) one of the crucial export branches. Unfortunately, Poland does not follow the example of its Western neighbour. To recapitulate, it is possible to say that environmental protection, which in fact is the protection of human life and health, and of nature, may be an ally to the economy, but this requires informed State policy. Although the lack of such a policy means lower expenditures incurred by businesses, it is associated with enormous financial and health losses sustained by society as a whole. ::

Pearls of the Polish Economy

Search for Pearls

of the Polish Economy Prof. Leszek Jasiński – Director of the Institute of Economics of the Polish Academy of Sciences

The pearl is the queen of gems. Pearls are pure, uniform, translucent, durable and usually form around a foreign body which got into the clam’s shell. They are so beautiful that they were once referred to as angels’ tears. And what are Pearls of the Polish Economy? They too are precious, pure, sometimes uniform, always transparent, especially to the tax authorities, and often durable, save for some unfortunate exceptions. They always form around a body called equity capital, besides which – as bookkeeping teaches

us – borrowed capital is gathered. And they are good-looking too, but they make no angels cry. As its organizers intended, Pearls of the Polish Economy is a ranking which recognizes the best Polish enterprises. Here, the best does not necessarily mean the largest, which is often the case in other rankings. Therefore, we do not strive to find companies boasting top revenue, profits, exports or assets, but the companies with the highest level of economic efficiency. There are seven efficiency criteria, which serve as the

basis for the calculation of an aggregate, which in turn determines the order of business entities on the list. The oldest ranking of Polish companies, designed around the criterion of company size, was created in the Institute of Economics of the Polish Academy of Sciences in the 1980s. Over time we started to focus on specialized rankings. Aside from the best companies, we are also interested in the most innovative ones – in the whole economy and in selected, important sectors. The creator and manager of the Pearls of the Polish Economy is Professor Jan Macieja. For years he has received support from Michał Baranowski, Justyna Janik and Michał Zajfert. Together, they are on a quest for pearls in the sea of the Polish economy. ::

The Pearls’ selection criteria

the most important microeconomic engines of economic growth Jan Macieja Applied since 2003, the criteria used to assess the companies that compete for the Pearl of the Polish Economy title are the key indicators of microeconomic engines of economic growth. The results we obtain do not differ significantly from the indicators calculated since 2002 by INE PAN for all companies operating in Poland and employing 50 or more people. It is worth emphasizing, however, that the indicators achieved by the Pearls are stronger, which confirms the accuracy of the calculations.

What do both measurements show? :: A significant improvement in all indicators after Poland’s accession to the EU in May 2004;

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:: A very stable debt ratio both with respect to the Pearls and to the entire economy. The stability of this indicator, when it refers to the whole economy and ranges between 30-70%, is of great importance for the economy’s resilience to fluctuations. Likewise, if a company’s debt is less than 30%, it is resistant to fluctuations, but at the same time it has a moderate growth rate because of using not much credit. By contrast, if a company is close to a 70% debt, or exceeds that ratio, its resistance to turbulences is small. During the survey period, the companies meeting the criteria to be qualified as Pearls, as well as other companies with 50 or more employees,

had about 50% of assets covered with their own capital. During the survey period, the debt ratio did not change and amounted to about 50%. This fact explains why Poland’s economy has been so immune to the global crisis. The reason for massive business collapses in Greece, Portugal and Spain is precisely that equity was too small as a proportion of the companies’ assets. On average, Polish companies, especially those classified as Pearls, achieved a high revenue growth rate amounting to 18.2% per year, and more importantly, a high 13% profitability index. The gross return on assets averaged 7.2%, and on equity 9.1%. As long as these microeconomic fundamentals are sustained, it is very probable that Poland will once more avoid the crisis. ::

Pearls of the Polish Economy

Polish economy comes out well Prof. Zbigniew Hockuba, Director for Poland/Bulgaria/Albania at the European Bank for Reconstruction and Development (EBRD), talks to “Polish Market.”

presentation of business rankings produced at our Institute by the team of Jan Macieja, PhD. The reason was that the league tables, apart from promoting the best businesses, contained valuable information on their condition and the extent to which they used available resources of capital, means of production, and labour. Additionally, the team led by Jan Macieja was able to propose a computer algorithm which synthesized several basic indicators used by reputable auditing firms. This has protected our rankings from being subjective, which is a feature of many league tables compiled by juries of experts.

You took part in producing the first Pearls of the Polish Economy rankings. Apart from its prestige dimension, is this undertaking helpful in assessing the condition of Polish businesses? Indeed. Ten years ago, when I was director of the Institute of Economics Polish Academy of Sciences (INE PAN), I decided in conjunction with “Polish Market” Editor-inChief Krystyna Woźniak-Trzosek to give a more ceremonial form to the

You are now looking at the Polish economy from the perspective of an expert working for an international financial institution. Is this picture different? When I was director of INE PAN my perspective - as a researcher or someone responsible for organizing research - was more scientific. Now, as Poland’s representative at EBRD, I am looking at the Polish economy from the outside, from London, and I am paying more attention to practical matters. At EBRD, we have to decide which investment projects we should choose and fund – fully or partially. The bank supports reconstruction and transformation not only in Europe. We have recently been also active in North Africa and the Middle East. How does the Polish economy come out from this perspective and in these comparisons? It comes out well. In London, it is spoken of

We can see that the Polish economy is faring quite well in the macroeconomic sphere – there are no problems with borrowing, interest on Polish bonds is low, and we hope this situation will continue despite a noticeable slowdown. But when we look deeper into individual sectors and markets, the microeconomic picture is not that favourable. The Polish economy does have a chance to avoid recession.

in favourable terms. Everyone knows that it went through the crisis without sliding into recession, in contrast to other European economies. But, of course, from this distance one can only see the broad outlines - it is the helicopter view. We can see that the Polish economy is faring quite well in the macroeconomic sphere – there are no problems with borrowing, interest on Polish bonds is low, and we hope this situation will continue despite a noticeable slowdown. But when we look deeper into individual sectors and markets, the microeconomic picture is not that favourable. And we still have a long way to go to catch up with the highly developed economies. It is true that our growth rates in recent years may be regarded as impressive, but one should remember that our GDP is still at 60% of the European Union’s average. We are contending with unemployment and an economic slowdown caused mainly by the eurozone crisis. There are many uncertainties about the future. According to the projections Poland has presented to the European Commission and international institutions, the Polish economy will come out of the current slowdown and return onto a path of accelerated growth. Are these projections considered to be reliable? Yes, the Polish economy does have a chance to avoid recession. All projections made by the National Bank of Poland (NBP), and by EBRD as well, indicate that Poland’s GDP will grow by 2%-2.5% this year and next year. If we are not satisfied it is because these hard-earned results do not quite measure up to our aspirations. The low rate of growth does not allow us to fulfil our aspirations, but it allows us to maintain macroeconomic equilibrium, which is also important these days. :: 11 /2012 :: polish market :: 17

Pearls of the Polish Economy

Ten years of the Pearls of This year, the Pearls of the Polish Economy ranking has its jubilee. Ten years ago, the editorial board of the “Polish Market” magazine and the Institute of Economics Polish Academy of Sciences decided to run a league table different from others, with specially designed criteria, which have remained unchanged despite the changing economic conditions and financial situation. This proves that they have been chosen well and can be called timeless. Pearls of the Polish Economy are companies with sales exceeding PLN100 million. They are ranked according to the following criteria: growth in revenues, return on sales, return on assets, return on equity, labour efficiency, the productivity of human, material and financial capital and the debt ratio. The number of Pearls included in the rankings is not predetermined and differs from year to year depending on how many companies meet the criteria. This is what puts the Pearls of the Polish Economy ranking apart from other league tables and lists of the best companies.

Pearls 2007 - 5th edition Grand Pearls 1

BSH Sprzęt Gospodarstwa Domowego Sp. z o.o.

KGHM Polska Miedź S.A.

Stalprodukt S.A.

Large Pearls 1

Huta Batory Sp. z o.o.

Dom Development S.A.

J.W. Construction Holding S.A.

Manufacturing, extraction, energy and service sector 1

BSH Sprzęt Gospodarstwa Domowego Sp. z o.o.

KGHM Polska Miedź S.A.

Stalprodukt S.A.

Infrastructure sector 1

Polkomtel S.A.

Operator Gazociągów Przesyłowych Gaz-System Spółka Akcyjna

P.P. Porty Lotnicze

Financial sector 1

Amplico Life Pierwsze Amerykańsko-Polskie Towarzystwo Ubezpieczeń na Życie i Reasekuracji S.A.

TU Allianz Polska S.A.

Commercial Union Polska - Towarzystwo Ubezpieczeń na Życie S.A. Pearls 2008 - 6th edition

Grand Pearls 1

Stalprodukt S.A.

Grupa Żywiec Spółka Akcyjna

Polkomtel S.A.

Large Pearls 1

Dom Development S.A.

Cyfrowy Polsat S.A.

Zakłady Górniczo-Hutnicze Bolesław S.A.

Manufacturing, extraction, energy and service sector 1

Dom Development S.A.

Cyfrowy Polsat S.A.

Zakłady Górniczo-Hutnicze Bolesław S.A.

Infrastructure sector 1

Polkomtel S.A.

Operator Gazociągów Przesyłowych Gaz-System S.A.

Multimedia Polska S.A. - Group

Banking and insurance sector 1

Commercial Union Powszechne Towarzystwo Emerytalne BPH CU WBK S.A.

AIG Powszechne Towarzystwo Emerytalne S.A.

AIG Bank Polska S.A.

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Over the 10 years, we have awarded the Pearl of the Polish Economy title to several hundred, if not several thousand, firms. On the occasion of the 10th anniversary, we would like to present some of the businesses which in the past five years topped the league tables. In 2007, BSH Sprzęt Gospodarstwa Domowego Sp. z o.o. ranked first in the Grand Pearls category. BSH is a global manufacturer of household appliances. It opened its first office in Poland in 1993 to become the leader on the Polish household appliances market in the following years. The company produces high-quality washing machines, dishwashers and tumble dryers in its Polish plants and distributes appliances of the Bosch, Siemens and Gaggenau brands. BSH is such a large and well-performing company that every year it has consistently ranked high in the Pearls of the Polish Economy rankings. In the same year, developers Dom Development and J.W. Construction were among the top three companies in the Large Pearls category. Additionally, Dom Development ranked first in this category in 2008 as well. Dom Development has operated on the real estate market since 1996. It carries out residential projects and helps its clients to acquire funding. The latter activity earned the company many awards. Thanks to its high-quality products and commitment to growth, Dom Development is still one of the top developers.

J.W. Construction Holding S.A. is the largest Polish developer listed on the Warsaw Stock Exchange. It has either completed or has ongoing projects in the Polish cities of Warsaw, Katowice, Gdynia and Poznań. It has also carried out projects abroad. Established in 1993, the company is the leader on the Warsaw residential real estate market. J.W. Construction has been awarded many prizes, including QI order (high quality management), Laur Konsumenta, Top Marka 2011 and Polski Herkules 2011. It was also the winner of the Eurobuild CEE ranking of the largest developers in Central and Eastern Europe. Being the general contractor for a majority of its own projects, its portfolio also comprises commercial and luxury segments, including the Hotel 500 chain, the luxury Czarny Potok Resort&Spa, as well as commercial offices Hanza Tower in Szczecin and Jerozolimskie Point in Warsaw. In 2008, Stalprodukt SA ranked first in the Grand Pearls category. The company started its activity in the steel sector 20 years ago. It is now a reputable and leading producer and exporter of highly processed steel products, including transformer sheets, steel sections and road barriers. In the same year, Grupa Żywiec SA and Polkomtel SA ranked second and third in this category. Grupa Żywiec SA has operated on the market for 14 years. It is one of the largest beer producers in Poland, offering a wide range of products. The group has five breweries, each using

Pearls of the Polish Economy

the Polish Economy state-of-the-art production processes and high-quality equipment. Polkomtel SA, is a telecom company set up in 1995. It is one of the largest operators on the Polish market, offering a variety of innovative services to a large group of clients. In the Large Pearls category, the winners in 2008 were Dom Development SA, Cyfrowy Polsat SA and ZGH Bolesław SA. ZGH Bolesław SA deals with zinc and lead mining and processing and is the main company in the ZGH Bolesław Corporate Group. It has a very long history dating back to the 12th century. Nowadays, it has a high position among producers of top quality zinc. The company’s priority is to expand by modernizing its production processes. Cyfrowy Polsat, an operator of the satellite television platform, deserves special attention. It ranked several times in the top places in the Pearls of the Polish Economy ranking. It was in first place in the Grand Pearls category in 2009 and 2010 and in second place in the same category in 2011. Dominik Libicki, president of Cyfrowy Polsat SA, said: “We are happy that for several years now we have occupied top places in this prestigious ranking. We care for our company’s steady expansion. Being a market leader, we try to set new trends and we are glad that the activities we undertake are reflected in the company’s revenues and receive recognition from the opinion-forming community. Our largest projects carried out in recent months – launching the high-speed LTE Internet service as the first operator in Poland, creating with Telewizja Polsat Poland’s largest media group and launching a channel package as part of the digital terrestrial television and mobile television service - are aimed at building a basis for the further expansion of our group.” The Koksownia Przyjaźń Sp. z o.o. coking company was among the top three Grand Pearls in 2011. Edward Szlęk, president of the company, said last year: “I accept the prize awarded by “Polish Market” as an endorsement of this modern company from a panel

of leading economists, bearing in mind its position on the European market of coke manufacturers. Koksownia Przyjaźń is part of the Jastrzębska Spółka Węglowa Group, which is one of the leading European producers of quality coke and coal-derivative products. A couple of years ago, we made the challenging decision, in conjunction with the owners, to commence a broad-based development strategy for our company. Since 2005 – despite the period of global economic recession – we have been consistently following the plan of the thorough modernization of the company.” The Amplico insurance group has ranked several times among the winners in the banking and insurance category. Amplico Life SA was set up in 1990 as the first foreign life insurer on the Polish market. It offers a wide range of insurance products: life insurance, accident insurance and health insurance. The company manages assets worth PLN9 billion. Łukasz Kalinowski, president of Amplico Life, said: “MetLife Amplico has been present on the Polish market since the 1990s, that is from the introduction of the free market economy. During this period we have been awarded with many prestigious prizes for our business accomplishments and dynamic and effective development. However, the distinctions that we find the most significant are the ones awarded by the Institute of Economics of the Polish Academy of Sciences. The companies recognized as the Pearls of the Polish Economy are, in fact, leaders among Polish companies, and their financial standing is subject to in-depth analysis and assessment by the experts of the Institute. Finding ourselves among the most efficient and dynamic enterprises in Poland constitutes a very precious recognition for MetLife Amplico companies. It is an award showing appreciation of all our employees and agents, and our achievement on the Polish market. It is also a great piece of news for our clients, since it indicates our efficiency and credibility.” ::

Pearls 2009 - 7th edition Grand Pearls 1

Cyfrowy Polsat S.A.

Grupa Żywiec S.A.

TVN S.A.

Large Pearls 1

Wałbrzyskie Zakłady Koksownicze Victoria S.A.

Young Digital Planet S.A.

Pfizer Polska Sp. z o.o.

Manufacturing, extraction, energy and service sector 1

Cyfrowy Polsat S.A.

Wałbrzyskie Zakłady Koksownicze Victoria S.A.

Young Digital Planet S.A.

Infrastructure sector 1

Polkomtel S.A.

Vattenfall Trading Services Sp. z o.o.

PGNiG S.A.

Banking and insurance sector 1

Aviva Powszechne Towarzystwo Emerytalne Aviva BZ WBK S.A.

Bank Pekao S.A.

AIG Bank Polska S.A. Pearls 2010 - 8th edition

Grand Pearls 1

Grupa Kapitałowa Cyfrowy Polsat S.A.

Elektrownia Rybnik S.A.

BSH Sprzęt Gospodarstwa Domowego Sp. z o.o.

Large Pearls 1

Aviva Powszechne Towarzystwo Emerytalne Aviva BZ WBK S.A.

Mennica Polska

Amplico Powszechne Towarzystwo Emerytalne S.A.

Manufacturing, extraction, energy and service sector 1

Grupa Kapitałowa Cyfrowy Polsat S.A.

Elektrownia Rybnik S.A.

BSH Sprzęt Gospodarstwa Domowego Sp. z o.o.

Infrastructure sector 1

Elektrociepłownia Kraków S.A.

ZEW Kogeneracja S.A.

Przedsiębiorstwo Ekspoloatacji Rurociągów Przyjaźń S.A.

Banking and insurance sector 1

Aviva Powszechne Towarzystwo Emerytalne Aviva BZ WBK S.A.

Amplico Powszechne Towarzystwo Emerytalne S.A.

CardifAssurances Risques Divers S.A. Pearls 2011 - 9th edition

Grand Pearls 1

KGHM Polska Miedź S.A.

Grupa Kapitałowa Cyfrowy Polsat S.A.

Koksownia Przyjaźń Sp. z o.o.

Large Pearls 1

PPUiH Agrobex Sp. z o.o.

Avio Polska Sp. z o.o.

3M Poland Sp .z o.o.

Manufacturing, extraction, energy and service sector 1

KGHM Polska Miedź S.A.

Koksownia Przyjaźń Sp. z o.o.

PPUiH Agrobex Sp. z o.o.

Infrastructure sector 1

Grupa Kapitałowa Cyfrowy Polsat S.A.

Mazowiecka Spółka Gazownictwa Sp. z o.o.

Polkomtel S.A.

Banking and insurance sector 1

Amplico Powszechne Towarzystwo Emerytalne S.A.

Provident Polska S.A.

First Data Polska S.A.

11 /2012 :: polish market :: 19

Pearls of the Polish Economy

Ten years of success Krystyna Woźniak-Trzosek, Editor-in-Chief of “Polish Market”

Sixteen years ago, when I decided to establish “Polish Market,” the market for economy-oriented publications was only in its infancy. In creating this company I was devoted to creating a magazine that would promote Poland worldwide, one that would pride itself on the accomplishments of the Polish economy, science and culture. Since its inception, the magazine has been compiled in compliance with the highest editorial standards. In creating a

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positive image for our country worldwide, we were assisted by Government authorities, perfectly aware of the importance of making Polish brands and businesses known. Our efforts resulted in many meetings, conferences, and rankings, with the Pearls of the Polish Economy Gala being the prime undertaking. I could not be more proud that it is already the tenth time we have the pleasure to award the “Pearl of the Polish

Economy” title. The ranking draws on the expertise of economists from the Institute of Economics of the Polish Academy of Sciences. Currently, there are about 2 million businesses operating in Poland. Although this figure may be impressive, of which I am very happy, regrettably, we cannot afford to analyse the whole universe. This is why it was necessary to employ a criterion of revenue. What is more, the “Pearl of the Polish Economy” award can only be given to a business which satisfies at least the minimum of the remaining efficiency criteria, as adopted in international audit practices. Here, I would like to stress that the number of companies awarded the “Pearls of the Polish Economy” is not pre-determined. This honourable title is awarded to every company that makes it into the ranking, regardless of its place. That’s true, Dear Pearls, you are our Pearls and the whole world should know it! As in previous years, information on the award-winning companies and ranking lists will be published in “Polish Market” and communicated to foreign diplomatic posts subordinate to the Ministry of the Economy, agencies of EU institutions, Government and local-Government authorities, and – most importantly – to business representatives. The Pearls of the Polish Economy are the crowning achievement of my mission, the mission that accompanied my adventure with “Polish Market,” the mission to promote our country. Each winner is an ambassador for our economy. However, in promoting entrepreneurs we cannot forget about the people and institutions whose efforts do our country credit. We kept this objective in mind when awarding the Honorary Pearls for the seventh time to honour outstanding businesses in categories such as economics, science, culture, and the promotion of patriotic and social values. I am deeply touched that it is already the tenth time we can award the Pearls of the Polish Economy and the seventh to present the Honorary Pearls. I am impressed by the companies which succeeded in satisfying our strict economic criteria and have become Pearls of the Polish Economy in such difficult times. ::

Pearls of the Polish Economy

Grand Pearls of the Polish Economy 2012 Name of company

Based in

Core business

Score

KGHM Polska Miedź S.A.

Lubin

metal mining and processing

1459

Synthos S.A. GK

Oświęcim

chemical industry

1432

LPP S.A. GK

Gdańsk

clothing - design and sales

1408

PESA Bydgoszcz SA..

Bydgoszcz

rolling stock production

1407

Zakłady Azotowe Puławy S.A.

Puławy

chemical industry

1350

CNH Polska Sp. z o.o.

Płock

agricultural machines

1344

Mondi Świecie S.A.

Świecie

paper industry

1315

Jastrzębska Spółka Węglowa S.A.

Jastrzębie-Zdrój

coal, coke

1281

Zakłady Chemiczne Police S.A.

Police

chemical industry

1242

International Paper-Kwidzyn Sp. z o.o.

Kwidzyn

paper industry

1233

ZAK S.A.

Kędzierzyn-Koźle

chemical industry

1225

Węglokoks S.A.

Katowice

coal sales

1194

Provident Polska S.A.

Warsaw

finance

1189

Polska Grupa Energetyczna S.A. GK

Warsaw

energy sector

1186

Santander Consumer Bank S.A.

Wrocław

bank

1181

Grupa Kapitałowa Azoty Tarnów

Tarnów

chemical industry

1168

Emperia Holding S.A.

Lublin

FMCG - wholesaler and retailer

1154

Rossman Supermarkety Drogeryjne Polska sp. z o.o.

Łódź

cosmetics, household chemicals retailer

1152

Ronal Polska Sp. z o.o.

Wałbrzych

automotive industry

1148

Getin Noble Bank S.A.

Warsaw

bank

1146

GDF Suez Energia Polska S.A.

Połaniec

energy sector

1138

Polkomtel S.A.

Warsaw

telecommunications

1128

Getin Holding GK

Wrocław

financial services

1120

Cyfrowy Polsat S.A. GK

Warsaw

telecommunications

1119

Valeo Polska

Skawina

automotive industry

1112

BSH Sprzet Gospodarstwa Domowego Sp. z o.o.

Warsaw

household appliances

1106

ABC Data S.A.

Warsaw

computer hardware distributor

1100

3M Poland Sp. z o.o.

Nadarzyn

innovative products

1098

Sitech Sp. z o.o.

Polkowice

automotive industry

1096

Enea S.A. GK

Poznań

energy sector

1074

PGL Lasy Państwowe

Warsaw

forestry

1070

Bilfinger Berger Budownictwo S.A.

Warsaw

construction

1054

PZU S.A. GK

Warsaw

insurance

1053

GK Żywiec S.A.

Żywiec

beer

1037

Nordea Bank Polska S.A.

Gdynia

bank

1021

Osadkowski S.A.

Bierutów

trade in agricultural supplies

1019

ThyssenKrupp Energostal S.A.

Toruń

distributor of steel products

1011

HDI Asekuracja TU S.A.

Warsaw

insurance

1007

PKO Bank Polski S.A.

Warsaw

bank

1007

Volkswagen Poznań Sp. z o.o.

Poznań

automotive industry

987

Eurocash GK

Błonie

FMCG distribution

977

Kombinat Koksochemiczny Zabrze S.A.

Zabrze

coking

976

ABB Sp. z o.o.

Warsaw

power equipment

971

Amplico Life PAP TUnŻiR S.A.

Warsaw

insurance

970

Bank Zachodni WBK S.A.

Wrocław

bank

969

Inter Cars S.A. GK

Kielce

car parts distributor

968

Brenntag Polska Sp. z o.o.

Kędzierzyn-Koźle

chemical materials distributor

965

NG2 S.A. GK

Polkowice

footwear production and distribution

962

Action S.A.

Warsaw

computer hardware distributor

959

Bank Polska Kasa Opieki S.A.

Warsaw

bank

952

Echo Investment S.A.

Kielce

construction and real estate

944

Firma Oponiarska Dębica S.A.

Dębica

automotive industry

941

11 /2012 :: polish market :: 21

Pearls of the Polish Economy

Grand Pearls of the Polish Economy 2012 Name of company

Based in

Core business

Solaris Bus & Coach S.A.

Owińska

automotive industry

941

Polski Koncern Mięsny Duda S.A.

Warsaw

food

930

ING Bank Śląski S.A.

Katowice

bank

928

PCC Rokita S.A.

Brzeg Dolny

chemical industry

917

Bank Polskiej Spółdzielczości S.A.

Warsaw

bank

906

Grupa Lotos S.A.

Gdańsk

petrochemical industry

906

AB S.A. GK

Wrocław

computer hardware distributor

904

Energa S.A. GK

Gdańsk

energy sector

888

Tauron Polska Energia S.A. GK

Katowice

energy sector

886

Orange Polska

Warsaw

telecommunications

883

Bank Millennium

Warsaw

bank

882

Operator Gazociągów Przesyłowych Gaz-System S.A.

Warsaw

gas transmission and storage

880

Grupa Kęty S.A.

Kęty

aluminium construction materials

878

Kredyt Bank S.A.

Warsaw

bank

870

Boryszew S.A.

Sochaczew

automotive industry

868

Budimex S.A.

Warsaw

construction

862

Warbud S.A.

Warsaw

construction

853

Impexmetal S.A.

Warsaw

distribution of coloured metals

845

Bank Handlowy w Warszawie S.A.

Warsaw

bank

839

Farmacol S.A. GK

Katowice

pharmaceutical industry

815

PKN Orlen S.A.

Płock

petrochemical industry

806

Grupa Can-Pack S.A.

Kraków

packaging

804

Bank Gospodarki Żywnościowej S.A.

Warsaw

bank

804

Miejskie Przedsiębiorstwo Wodociągów i Kanalizacji S.A.v

Warsaw

municipal services

801

Polskie Górnictwo Naftowe i Gazownictwo S.A.

Warsaw

oil and gas extraction and sales

778

Stalprodukt S.A.

Bochnia

production and distribution of steel products

775

Nowa Itaka Sp. z o.o.

Opole

tourist sector

769

Credit Agricole Polska S.A.

Wrocław

bank

746

Orlen Gaz Sp. z o.o.

Płock

petrochemical industry

741

Lubelski Węgiel Bogdanka S.A.

Puchaczów

coal mining

738

Toyota Motor Manufakturing Poland Sp z o.o.

Wałbrzych

automotive industry

737

Kompania Węglowa S.A.

Katowice

coal mining

725

GK Rovese

Kielce

bathroom equipment

706

Bank BPH S.A.

Kraków

bank

700

GK NFI Empik Media & Fashion S.A.

Warsaw

distributor: media, entertainment, clothing, footwear, toys and accessories for children, cosmetics, language courses

693

GK Impel SA

Wrocław

business services

676

SM Mlekovita GK

Wysokie Mazowieckie

food

675

Rafako S.A.

Racibórz

energy sector, boilers

673

Kolporter Sp. z o.o. S.K.A.

Kielce

FMCG and press distributor

662

Kopex S.A. GK

Katowice

coal mining machines

622

ArcelorMittal Poland S.A.

Dąbrowa Górnicza

steel industry

614

TRW Polska Sp. z o.o.

Częstochowa

automotive industry

597

Tele-Fonika Kable Sp. z o.o. Sp.KA

Kraków

cables

594

Selena FM S.A.

Wrocław

construction chemicals

515

Pelion S.A. GK

Łódź

distribution of pharmaceuticals

501

PKP Energetyka S.A.

Warsaw

energy sector

483

Polimex - Mostostal S.A. GK

Warsaw

construction

481

100

Neuca S.A.

Toruń

distribution of pharmaceuticals

441

101

CF Cefarm S.A.

Warsaw

distribution of pharmaceuticals

426

102

Fiat Auto Poland S.A.

Bielsko-Biała

automotive industry

393

103

Budmat Bogdan Więcek

Płock

construction materials

316

22 :: polish market ::

11 /2012

Score

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On December 5th, the companies which form our group will start operating under a new brand. That day Polish chemistry will reveal its new face.

Find out more

Pearls of the Polish Economy

Large Pearls of the Polish Economy 2012 Based in

Core business

Score

1. Avio Polska Sp. z o.o.

Name of company

Bielsko-Biała

aircraft engines

1393

2. Faurecia Gorzów Sp. z o.o.

Gorzów Wlkp.

automotive industry

1294

3. Stalprofil S.A.

Dąbrowa Górnicza

steel distribution

1277

4. BZ WBK-Aviva TUO S.A.

Poznań

insurance

1263

5. Wawel S.A.

Kraków

confectionery production

1260

6. SGL Carbon Polska S.A.

Racibórz

coal processing

1256

7. Petrax Sp. z o.o.

Warsaw

petrochemical imports

1244

8. Compensa TUnŻ S.A.

Warsaw

insurance

1229

9. Cardif Polska TUnŻ S.A.

Warsaw

insurance

1188

10. OLPP Sp. z o.o.

Płock

transport and storage of liquid fuels

1181

11. Aluprof S.A.

Bielsko-Biała

aluminium products for construction

1157

12. PPUiH Agrobex Sp z o.o.

Poznań

residential developer

1153

13. Amplico PTE S.A.

Warsaw

pension fund

1148

14. Famur S.A.

Katowice

mining equipment

1138

15. Grupa Alumetal

Kęty

aluminium foundry

1130

16. AC S.A.

Białystok

automotive industry

1121

17. ZCh Alwernia S.A.

Alwernia

chemical semi-products

1116

18. Cementownia Warta S.A.

Trębaczew

cement production

1111

19. Dom Development S.A.

Warsaw

residential building

1110

20. Tenneco Automotive Polska Sp. z o.o.

Rybnik

automotive industry

1103

21. Huta Łabędy S.A.

Gliwice

steel products

1102

22. Paged S.A.

Warsaw

carpentry products, furniture

1078

23. KDPW S.A.

Warsaw

financial services

1075

24. PWPW S.A.

Warsaw

banknotes, secured documents

1073

25. First Data Polska S.A.

Warsaw

systems and services for banks

1062

26. Atal S.A.

Cieszyn

residential developer

1058

27. Mennica Polska S.A.

Warsaw

coins and medals

1053

28. Radpol S.A.

Człuchów

heat shrink polyethylene products

1051

29. DS Smith Polska S.A.

Kielce

packaging

1049

30. BZ WBK-Aviva TUnŻ S.A.

Poznań

insurance

1044

31. HJ Heinz Polska S.A.

Krobia

vegetable preserves

1032

32. Trasko Inwest Sp z o.o.

Ostrzeszów

industrial building

1030

33. Amitech Poland Sp z o.o.

Gdańsk

construction plastics

1021

34. Elektrociepłownie Wybrzeże S.A.

Gdańsk

energy sector

1020

35. Pekaes S.A.

Błonie

transport and forwarding

1018

36. Apator S.A. GK

Toruń

measurement equipment

1011

37. Arhelan Burzyńscy Sp. J.

Bielsk Podlaski

FMCG stores

1008

38. Deutsche Bank Polska S.A.

Warsaw

bank

1006

39. Work Service GK

Wrocław

head hunting

1003

40. Koelner S.A. GK

Wrocław

anchoring and fixing systems

987

41. CPP Toruń - Pacific Sp. z o.o.

Toruń

breakfast food

976

24 :: polish market ::

11 /2012

Pearls of the Polish Economy

Large Pearls of the Polish Economy 2012 Based in

Core business

42. Luvena S.A.

Name of company

Luboń

fertilizers

974

43. Zarząd Morskiego Portu Gdynia S.A.

Gdynia

transport

953

44. ZAP Sznajder Batterien S.A.

Piastów

batteries

930

45. Sarantis Polska S.A.

Piaseczno

production and distribution of cosmetics

928

46. Bank Pocztowy S.A.

Bydgoszcz

bank

908

47. AMS S.A.

Warsaw

outdoor advertising

886

48. Gdańskie PEC Sp. z o.o.

Gdańsk

heat production and distribution

881

49. ZUE S.A. GK

Kraków

transport infrastructure building

869

50. InterRisk TU S.A. Vienna Insurance Group

Warsaw

insurance

866

51. Poszukiwania Nafty i Gazu Kraków S.A.

Kraków

oil and gas mining

847

52. INEA S.A.

Poznań

telecommunications

837

53. JAS-FBG S.A.

Katowice

transport and forwarding

836

54. Unibep S.A.

Bielsk Podlaski

construction

836

55. Fota S.A. GK

Gdynia

automotive industry

835

56. Ekoinstal Jan Klusko i Partnerzy Sp. J.

Katowice

distribution of steel products

829

57. Zelmer S.A. GK

Rzeszów

household appliances

826

58. Energoinstal S.A.

Katowice

construction services for the energy sector

815

59. Faurecia Automotive Polska S.A.

Grójec

automotive industry

814

60. PSO Maskpol S.A.

Konieczki

protective equipment

814

61. Mirbud S.A.

Skierniewice

general construction

794

62. Albo Sp z o.o.

Radom

sales of meat and cured meat

793

63. ComArch S.A.

Kraków

786

64. BSK Return S.A.

Zawiercie

steel industry, trade in scrap metal

786

65. Orbis S.A. GK

Warsaw

hotel industry

773

66. Fabryka Mebli Forte S.A. GK

Ostrów Mazowiecka

furniture production

751

67. PBK PeBeKa S.A.

Lubin

construction services for the mining sector

745

68. Enesta Sp. z o.o.

Stalowa Wola

trade in electricity

738

69. Górnośląska Spółka Gazownictwa Sp. z o.o.

Zabrze

gas distribution

708

70. Wielton S.A.

Wieluń

trailers and semi-trailers

708

71. Pronar Sp. z o.o.

Narew

agricultural machines

701

72. Adecco Poland Sp. z o.o.

Warsaw

HR services

700

73. ZG-H Bolesław S.A.

Bukowno

zink mining and processing

692

74. Elektrobudowa S.A.

Katowice

construction services for the energy sector

684

75. J.W. Construction Holding S.A.

Ząbki

residential building

676

76. Exatel SA

Warsaw

telecommunications

675

77. Adamed Sp. z o.o.

Czosnów

pharmaceutical sector

667

78. KWB Adamów S.A.

Turek

lignite mining

666

79. Szynaka Meble Sp. z o.o.

Lubawa

furniture production

660

80. Compensa TU S.A. Vienna Insurance Group

Warsaw

insurance

651

81. Zakłady Magnezytowe Ropczyce S.A.

Ropczyce

refractory materials

651

82. Hochtief Polska S.A.

Warsaw

construction

649

26 :: polish market ::

11 /2012

Score

Pearls of the Polish Economy

Large Pearls of the Polish Economy 2012 Based in

Core business

83. Mazowiecka Spółka Gazownictwa Sp. z o.o.

Name of company

Warsaw

gas distribution

648

84. ZPC Mieszko S.A.

Warsaw

confectionery products

635

85. MPWiK S.A. Kraków

Kraków

municipal services

634

86. ATM S.A.

Warsaw

telecommunications

624

87. Europejski Fundusz Leasingowy S.A.

Wrocław

financial services

609

88. Grupa INCO

Warsaw

household chemicals

606

89. PP Porty Lotnicze

Warsaw

air transport

597

90. Serwistal Sp. z o.o.

Ełk

steel sheets and products

592

91. Mostostal Zabrze Holding S.A. GK

Zabrze

construction

582

92. Awbud S.A.

Fugasówka

construction

577

93. ATS S.A.

Toruń

steel structures

569

94. Regis Sp. z o.o.

Kraków

technologies for food industry

562

95. Sipma S.A.

Lublin

agricultural machines

558

96. Pfizer Polska Sp z o.o.

Warsaw

pharmaceutical sector

555

97. Polski Holding Farmaceutyczny S.A. GK

Warsaw

pharmaceutical sector

549

98. Prochem S.A. GK

Warsaw

construction of chemical plants

547

99. Atrem S.A.

Złotniki

construction project engineering

544

100. Mostostal Puławy S.A.

Puławy

construction

538

101. Sygnity S.A. GK

Warsaw

IT systems and services

536

102. Fugo S.A.

Konin

production of mechanical equipment

527

103. Przedsiębiorstwo Handlowe A-T S.A.

Krotoszyn

distributor of electrical, chemical and pharmaceutical products

521

104. PHUP Gniezno

Gniezno

FMCG distributoir

512

105. Hutmen S.A.

Warsaw

copper products

501

106. Nowy Styl Sp. z o.o. GK

Krosno

office furniture production

500

107. Colian S.A. GK

Opatówek

food production

490

108. Wojas S.A. GK

Nowy Targ

footwear production

487

109. DFM Zanam - Legmet Sp. z o.o.

Polkowice

mining machines

471

110. PHP Mercus Sp. z o.o.

Polkowice

electrical products

461

111. KPPD S.A.

Szczecinek

wood industry

453

112. MZA Sp. z o. o.

Warsaw

municipal transport

444

113. Koleje Mazowieckie Sp. z o.o.

Warsaw

transport of passengers

413

114. Agora S.A.

Warsaw

media

404

115. PS Trade Trans Sp. z o.o.

Warsaw

transport and forwarding

388

116. Cronimet PL Sp. z o.o.

Inowrocław

scrap metal purchase and processing

373

117. GPW S.A.

Katowice

municipal services

358

118. Espersen Polska Sp. z o.o.

Koszalin

fishing and fish processing

345

119. Delko S.A. GK

Śrem

distribution of household chemicals and cosmetics

333

120. Marbet Sp. z o.o.

Bielsko-Biała

innovative products

323

121. Infovide-Matrix S.A.

Warsaw

IT services

306

122. MPK - Łódź Sp. z o.o.

Łódź

municipal transport

297

123. Metro Warszawskie Sp. z o.o.

Warsaw

municipal transport

276

28 :: polish market ::

11 /2012

Score

Pearls of the Polish Economy Pearls in the manufacturing, extraction, energy and service sector Name of company

Pearls in the infrastructure sector

Based in

Score

Based in

Score

1. KGHM Polska Miedź S.A

Lubin

1459

1. Polska Grupa Energetyczna S.A. GK

Warsaw

1186

2. Synthos S.A. GK

Oświęcim

1432

2. GDF Suez Energia Polska S.A.

Połaniec

1138

3. LPP S.A. GK

Gdańsk

1408

3. Polkomtel S.A.

Warsaw

1128

4. PESA Bydgoszcz S.A.

Bydgoszcz

1407

4. Cyfrowy Polsat S.A. GK

Warsaw

1119

5. Avio Polska Sp. z o.o.

Bielsko-Biała

1393

5. Enea S.A. GK

Poznań

1074

6. Zakłady Azotowe Puławy S.A.

Puławy

1350

6. Elektrociepłownie Wybrzeże S.A.

Gdańsk

1020

7. CNH Polska Sp. z o.o.

Płock

1344

7. Zarząd Morskiego Portu Gdynia S.A.

Gdynia

953

8. Mondi Świecie S.A.

Świecie

1315

8. Energa S.A. GK

Gdańsk

888

9. Faurecia Gorzów Sp. z o.o.

Gorzów Wlkp.

1294

Katowice

886

Jastrzębie-Zdrój

1281

Warsaw

883

10. Jastrzębska Spółka Węglowa S.A.

Name of company

9. Tauron Polska Energia S.A. GK 10. Orange Polska

Pearls in the financial sector (banking ad isurace) Name of company

Based in

Score

1. BZ WBK-Aviva Towarzystwo Ubezpieczeń Ogólnych S.A.

Poznań

1263

2. Compensa TU na Życie S.A. Vienna Insurance Group

Warsaw

1229

3. Provident Polska S.A.

Warsaw

1189

4. Cardif Polska TUnŻ S.A.

Warsaw

1188

5. Santander Consumer Bank S.A.

Wrocław

1181

6. Amplico Powszechne Towarzystwo Emerytalne S.A.

Warsaw

1148

7. Getin Noble Bank S.A.

Warsaw

1146

8. First Data Polska S.A.

Warsaw

1062

9. PZU S.A. GK

Warsaw

1053

Poznań

1044

10. BZ WBK-Aviva Towarzystwo Ubezpieczeń na Życie S.A.

11 /2012 :: polish market :: 29

Honorary Pearls

The Honorary Pearls of “Polish Market” Janusz Lipkowski The Pearls of the Polish Economy competition, run by the “Polish Market” in conjunction with the Institute of Economics at the Polish Academy of Sciences (INE PAN), has achieved great success and is still developing. In the times of economic transition in our country, such initiatives played and still play a crucial inspirational and motivational role. Observing Polish companies as they achieve success is a very rewarding activity. From the perspective of someone who has observed this initiative, I would like to express how impressed I am with the sheer magnitude of this campaign and its success in the past decade. Last year’s anniversary celebrations, which took place in the splendid halls of the Grand Theatre, showed how successful the initiative was. Nothing more, nothing less! From the economic classification spawned the idea of presenting Honorary Pearls in recognition for outstanding services to the country in the fields of culture, science, art, and patriotic values. I believe it is an exceptionally successful and well-justified concept. Emphasizing our contribution to the world economy and innovation, we do not forget about the values which, though only indirectly connected with the economy, are extremely important from the point of view of the general impression our country makes on its current and future partners. We do not limit ourselves to honouring people or teams operating exclusively in Poland – after all many of our outstanding compatriots are associated with foreign centres to a larger or smaller extent, and their services to Poland do not necessarily have to be related to their permanent residence here. Krystyna Woźniak-Trzosek, the creator of the concept of Honorary Pearls, has ensured that the selection of candidates and winners is made by an independent team of experts, and appointed the Honorary Pearls Jury to this end. It has been joined by specialists in the fields of politics and economy - Janusz Steinhof, Tadeusz

30 :: polish market ::

11 /2012

Donocik, Adam Szejnfeld, Krystyna Woźniak-Trzosek - but they have never been in the majority. The jury is made up of professors specialized in diverse disciplines, from art history and ethnology (Ksawery Piwocki, rector of the Academy of Fine Arts and Andrzej Rottermund, director of the Royal Castle in Warsaw), through physical chemistry (the undersigned) to chemical engineering (Jerzy Buzek, former Polish prime minister and former president of the European Parliament) and technical sciences (Andrzej Wiszniewski, former president of the State Committee for Scientific Research). I was invited to participate in the work of the Jury when I was the first Vice-President of the Polish Academy of Sciences (PAN). I would like to stress this, as PAN has always been the strategic partner of “Polish Market” in the Pearls of the Polish Economy programme (through the fundamental role in it of the Institute of Economics) and in the Honorary Pearls programme, of which PAN is an honorary patron.

Every year, the Honorary Pearls Jury is faced with the very difficult problem of choosing candidates to be awarded an Honorary Pearl. The procedure has several stages and is not difficult to imagine: the recommendation of candidates by the members of the Jury, the collection of material and substantiations, and finally an in-depth e-mail discussion preceding the Jury’s meeting, at which the decisions are made. The procedure does not end at this: one condition for granting an Honorary Pearl is the consent of the candidate to arrive at the “Polish Market” Gala in person. If no such consent is given, the Jury usually changes the decision, which is made by e-mail based on the results of the discussion during the meeting. However, this is very rare, which is a source of satisfaction to me! In our work, we pay particular attention to making decisions which are free of any current political considerations. I think that we have succeeded in that and we can be proud of the previous results of our activities. The list of winners consists of names recognised in the country and abroad, but also outstanding individuals, who avoid publicity, but were found in our analyses. I encourage you to take a look at the list of winners of the Honorary Pearls for 200612 and see for yourself that it was a good choice. It goes without saying that the Honorary Pearls is unable to produce an exhaustive list of outstanding Poles in the categories listed in the table. It is, however, an important element in the nationwide system of highlighting people whose creative initiative, incredible consistency in action, and personal dedication to the common good are worthy of particular merit. I would like to congratulate “Polish Market,” and personally President Krystyna Woźniak-Trzosek, on the excellent concept and success in putting it into practice. ::

The Author is Chairman of the Jury

Honorary Pearls

Beautiful people We are a nation full of beautiful people whom we often do not appreciate enough, and they do so much good. Sometimes even their activity, and success in particular, is for others a thorn in the eyes, an object of envy. We need to get rid of these national vices, learn to love other people and appreciate those who add to the prestige of our country and our society.

When I think about the “Polish Market’s” “Pearls of the Polish Economy”, the first association I have in connection with the proceedings of the Jury is a variety and diversity of wonderful, beautiful in spirit people who all deserve a special distinction. However, should it keep its unique value, only selected nominees can be awarded. As far as I am concerned, my favourite in the Business category was Wojciech Inglot, president of Inglot Cosmetics. In a relatively short time, this man, a native to Przemyśl, conquered the whole world. He has hundreds of stores in all major locations worldwide, such as Sydney, Cape Town or New York, and he still opens new ones. In the Science category, I thought, for example, about professor Marek Krawczyk, thanks to whom the first successful liver transplant from a living donor was made in Poland in 1999. Ever since, more than 800 life-saving liver transplants have been performed in his clinic. There is a great deal of beautiful people is the Culture category. Here, I thought, for example, about the Poznań Philharmonic Orchestra, which has accompanied, since 1952, the finalists of the International Henryk Wieniawski Violin Competition, or about Wojciech Smarzowski, a great film director of the young generation, who has created such fascinating films as “The Wedding”, “The

Dark House” and “Rose”. Noteworthy is also the return of the Television Theatre to the public television or the Incubator of Functional Arts, an initiative which aims to promote young Polish designers creating unique and innovative utilitarian objects. What is, however, extremely important in the development of the civil society is the promotion of social values. In this area, an absolutely exceptional person is Bożena Kazanowska, originator of the Polish Tactile Books Library. Through its branches all over the country, the library offers

unique, tactile books for children who are blind, partially sighted, physically disabled and in wheelchairs. The strong should help the vulnerable, that is something worth remembering. As for the Promotion of Patriotic Values, the candidacy of Professor Władysław Bartoszewski came to me as obvious. This insurgent, soldier, diplomat and politician is the most beautiful man of our time. It is not a place here to dwell on his life and accomplishments, as not even a voluminous collection of books would render his colourful and above all deeply patriotic life. Fortunately, in almost every utterance or publication Professor Bartoszewski teaches us a modern philosophy. Let us hope he will instil it in as many Poles as possible. It is wonderful that we have in Poland such extraordinary, beautiful people, and that they undertake such interesting projects. Therefore, they are worth talking and writing about, celebrating with the widest audience possible, and of course rewarding. On the one hand, “you do not plant a forest to rest in the shade of the trees...”, but, on the other hand, the great civic and social activity of the beautiful people should not and must not be unknown. They are bound to serve as an inspiration and role models for others. In this context, it is worth emphasizing that this task should be fulfilled not only by businesspeople, the public administration, diplomats or NGOs. It is also a very important challenge ahead for the media, especially those specialized in promoting Poland, its achievements in the fields of culture, art, science, technology and economy. In this catalogue, one of the most distinguished and most effective propagators of knowledge about Poland’s successes is the “Polish Market” monthly. Its publishers undoubtedly deserve a credit for having created the “Pearls of the Polish Economy” and the “Honorary Pearls”, both meant to enhance the promotion of our country and countrymen. ::

Adam Szejnfeld Member of Parliament Member of the “Pearls’” Jury www.szejnfeld.pl

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Honorary Pearls

Honorary Pearls – the personages of Poland’s social life For seven years the Pearls of the Polish Economy Gala has been the scene for presenting the Honorary Pearls of the “Polish Market” magazine, a distinction awarded to outstanding personalities and institutions in the fields of economy, culture, science, and for fostering social and patriotic values - people whose legacy, experience, prestige, and unquestionable personal virtues make them the ambassadors for the finest Polish values. So far, nearly 50 people have been awarded an Honorary Pearl – and they are already one-person institutions of Polish social life. Maciej Proliński describes the rationale behind the distinction and the most significant award winners. Maciej Proliński

prof. Alicja Chybicka, Honorary Pearl, year 2007, category Science

The Pearls are selected by a Jury composed of Prof. Jerzy Buzek, former Prime Minister and former President of the European Parliament; Tadeusz Donocik, President of the Chamber of Commerce and Industry in Katowice; Grażyna Jaskuła, Vice-President of Oficyna Wydawnicza Rynek Polski (“Polish Market’s” publisher); Prof. Janusz Lipkowski, Chairman of the Jury, member and long-time

Vice-President of the Polish Academy of Sciences; Prof. Ksawery Piwocki, former Rector of the Academy of Fine Arts in Warsaw; Prof. Andrzej Rottermund, Director of the Royal Castle in Warsaw; Adam Szejnfeld, Chairman of the Sejm Treasury Committee; Janusz Steinhoff, former deputy Prime Minister and Minister of the Economy; Prof. Andrzej Wiszniewski, former President of the State Committee for Scientific

prof. Bogdan Marciniec, Honorary Pearl, year 2009, category Science

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Research, former Minister of Science and former Rector of the Wrocław University of Technology; and Krystyna Woźniak-Trzosek, President of Oficyna Wydawnicza Rynek Polski. “The Pearls of the Polish Economy” are awarded according to objective criteria prepared by the Institute of Economics at the Polish Academy of Sciences. When it comes to the Honorary Pearls of “Polish Market” I have only one thing to say: just read the list of winners and you will know how important those distinctions are,” said Prof. Michał Kleiber, President of the Polish Academy of Sciences (PAN).

Economy first We can all recall the time when Poland was flush with the propaganda of success, while actually being stuck in the rough world of Europe’s backwater, the time when Poles were afraid of success. Today we are living in a country where ambition, competition, and success are a respected pattern of activity, both in private and professional life, including business. The first Honorary Pearl in the field of economy was granted in 2006 to Andrzej Strzelecki. The founder of Henry Lloyd was awarded for the worldwide promotion of the company’s brand and for fostering moral values in business. “This contest shows that the economy is not only about money and macroeconomic indicators. Success achieved in business should also have strong support in moral values,” said Elżbieta Wilczyńska, the then Minister of the Economy, while handing over the award. A year later the award in this category went to the Warsaw Stock Exchange and its creators – Wiesław Rozłucki, Jacek Socha, and Ludwik Sobolewski, its current president. In the following years this economically-strong team was joined by Prof. Maciej Nowicki, who received the Honorary Pearl for his lifetime achievement in the field of environmental protection and for finding the way to reconcile the interests of the coal-based Polish economy with the global strategy of

Honorary Pearls counteracting climate change; economist and EU Commissioner for Budget and Financial Programming Janusz Lewandowski for his contribution to the Polish transformation and building Poland’s position in the EU, and Prof. Marek Belka, president of the National Bank of Poland (NBP) and the leading representative of the “Polish school of economics,” made up of specialists with the highest professorial degrees, who are not satisfied with being consultants, so they plunge into politics, trying to implement their ideas under their own names. Last year, it was the first time that the “Special Honorary Pearl” was awarded. It was granted to Prof. Jerzy Buzek, former President of the European Parliament, a man whose knowledge and esteem have contributed to the fact that today Poland is spoken of in Europe with great respect. The turmoil in the global economy demands special skills on the part of people who manage finance in business. In these very uncertain times, we should also remember about promoting corporate social responsibility and social values. After all, the economy and values should not be mutually-exclusive concepts. It is worth mentioning at least several of our Laureates who combine their everyday, consistent activities with a moving solidarity with those in need of support. These include Janusz Sobieraj and the Radex Corporation, Małgorzata Żak and the Polsat Foundation, Jerzy Owsiak and the Great Orchestra of Christmas Charity Foundation, the TVN “Nie jesteś sam” (“You Are Not Alone”) Foundation. They are all winners of the Honorary Pearls in the field of fostering social values. These institutions have undoubtedly contributed to setting a certain standard in social activity and they have retained it to this day!

talented. We are holding a good artistic dialogue with the world. The idea of perceiving art, especially music, as the best showcase and ambassador for Poland, has for years determined the activity of the “Polish Market” magazine. It should be noted that the distance between the economy and culture should not be too great, as culture needs continuous support and attention from the economy, and the economy will always benefit from a bit of cultural inspiration. “These days we sometimes forget that, although we’re going through a crisis, however serious it is, we are achieving successes – greater or lesser, but in 50, 100 years’ time, actually, the thing that will most likely remain is what we are doing in Polish culture. That is why I wish to extend my greatest thanks to the “Polish Market” editorial board, who, by promoting the Polish economy, also promotes Polish culture,” said Prof. Jerzy Buzek at last year’s “Polish Market” Gala. The first Honorary Pearl for culture went to Wojciech Kilar – one of the best Polish composers, the artist who so characteristically displayed the beauty of Polish melody. This is true of his symphonic work inspired by Polish folk music, his religious and national works, and his film music. In the following years, many outstanding Polish musicians deserved the Pearl award – people who

professionally and creatively promote Poland worldwide - from Japan, New Zealand, and Europe, to the USA and even Africa. An Honorary Pearl has already been awarded three times to a great opera singer – Małgorzata Walewska (mezzosoprano), Marek Torzewski (tenor), and Marcin Bronikowski (baritone). Among the representatives of classical music who have received the award are Janusz Olejniczak, one of the best-known, recognized, and valued Polish pianists, and Prof. Henryk Wojnarowski, the director of the Warsaw Philharmonic Choir. The Professor has had a lot of success with the Choir in recent years both in this country and abroad. Jazz has always been a showpiece in Poland. This is well reflected in

Ryszard Kaczorowski (19192010), Honorary Pealr, year 2007, category Fostering Patriotic Values

Tadeusz Mazowiecki, Honorary Pealr, year 2009, category Fostering Patriotic Values

Polish culture is replete with great people. This elite is Poland’s showcase for the world. Poland has always been a country with a wonderful culture. In particular, Polish music has its significant place in the world and especially in Europe. We have been continuously represented on the international scene. There are excellent Polish bands, vocalists, and composers. New concert halls are being built and our young people are very

prof. Norman Davis, Honorary Pearl, year 2008, category Fostering Patriotic Values

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Honorary Pearls Both jazz singers – Urszula Dudziak and Anna Maria Jopek – have received the Pearl award for their artistic achievements and for promoting Polish music outside Poland. This list of outstanding names – the great ambassadors for Polish culture who have received the Pearl award – would not be complete without Krystyna Janda, a prominent actress, director and head of the Polonia Theatre in Warsaw, and Jerzy Skolimowski, a director and actor of international renown. This year, the Pearl holders will be joined by Jerzy Stuhr, one of the most popular Polish stage and film actors, and director, lecturer and long-term rector of the Theatre School (PWST) in Kraków.

A new role for Poland’s academic community is to offer its own intellectual potential, using the language of business and contemporary challenges. Krystyna Janda, Honorry Pearl, year 2011, category Culture

Jerzy Owsiak, Honorary Pearl, year 2009, category Fostering Social Values

the figure of Urszula Dudziak, a versatile vocalist and long-term musical partner of Michał Urbaniak. She has worked in the studio and on the stage with such jazz giants as Herbie Hancock, Marcus Miller, and Krzysztof Komeda. One of the largest projects in the history of Polish jazz and all Polish music was “Upojenie” (Intoxication) – the joint album of worldrenowned guitarist Pat Metheny and Polish vocalist Anna Maria Jopek.

In Poland we are still learning the principles of free market, venture capital funds are still “in nappies,” and many Polish scientists do not realize how big the commercial potential of their knowledge is. The Honorary Pearls in the field of science not only represent an opportunity to highlight our great scientists, who can be role models for our young adepts of science, but also to reflect on the conditions for scientific

Małgorzata Walewska, Honorary Pearl, year 2008, category Culture

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development. Our winners show that there is nothing impossible in this field. They prove that intellect, passion, and perseverance in pursuing one’s goals are decisive contributors to success. They also bring a broader context with them. With our Pearls we remind Europe and the world about the contribution of our scientists to the development of global science, but we primarily demonstrate that we wish to actively participate in the growth of 21st-century science. We also want to show Europe that the investments in Polish science made in the recent years, those in research, equipment, and human resources, are making it increasingly competitive, and also an attractive place for conducting scientific activities. A significant fact: the first Honorary Pearl in this field was granted in 2006 to Prof. Henryk Skarżyński – an outstanding surgeon and otolaryngologist, the originator of cutting-edge diagnostic and treatment methods for hearing disorders and the rehabilitation of patients with such disorders. Prof. Skarżyński is the founder of the World Partial Deafness Centre in Kajetany near Warsaw. His initiatives not only influence the quality of life, but also release an extraordinary energy in the social and economic sphere. Prof. Skarżyński is undoubtedly a role model for contemporary civic attitudes. Our other winners are also such models. They include Prof. Alicja Chybicka, the Head of the Clinic of Paediatric Oncology, Haematology and Bone Marrow Transplantation at Wrocław Medical University, Prof. Maria Siemionow, a Polish transplant surgeon working in the USA, who received a Pearl for her outstanding achievement in plastic surgery; Prof. Karol Myśliwiec, an archaeologist awarded for his impressive archaeological discoveries during Polish excavations in Egypt; and Prof. Marian Zembala, a cardiologist recognized for his activity in the field of transplant and cardiac surgery.

We may also be happy with the fact that the world of business also feels how the economy connects with patriotism. In the Communist times, Poles felt somewhat ashamed of their heritage. Today they have learnt from

Honorary Pearls their European peers that they can be proud of their legacy, remembering that the everyday lives of Poles – both social and political – especially in the 19th and 20th centuries – had to be led in extremely turbulent times in world history. The memory of the Warsaw Rising, which was deliberately omitted by Communist propaganda, passed on from generation to generation, had lived on to see Poland regain its independence in 1989. The importance of those heroic developments of 1944 for Poland’s identity and for the place we live in today cannot be overestimated. The Warsaw Rising Museum is a great example of a modern museum and research establishment targeted at young people. Its Director, Jan Ołdakowski, received our first Honorary Pearl for fostering Polish traditions and patriotic values. In 2007, a Pearl in this category was granted to Ryszard Kaczorowski, the last President of Poland in Exile. Kaczorowski, born in 1919, who was arrested by the Soviets in 1940 for organizing an underground scouting movement, had his death penalty eventually reduced to 10 years in a labour camp. He was to be taken to Kolyma, a place nobody returned from alive. The SikorskiMayski Agreement saved his life. After amnesty, he got out of the camp and joined the Polish Armed Forces of Gen. Anders, travelling the entire combat route with him. He never came back to Poland and lived in London until the end. Still, he took part in all the important historical occasions and performed representative functions. On 22 December 1990, on the day when Lech Wałęsa was sworn in as President of the Third Republic of Poland, Ryszard Kaczorowski passed onto him the presidential insignia. He died a tragic death on 10 April 2010 in the crash of the Polish government plane near Smolensk, Russia, on the way to the ceremonies marking the 70th anniversary of the Katyń massacre. History affects the economy, as it determines the place we find ourselves in, how we have arrived at that point, what the sources of this situation are, and why there is such a situation in the country. The economy is a significant element in shaping the future,

Honorary Pearls YEAR 2006 :: ECONOMY :: SCIENCE :: CULTURE :: FOSTERING SOCIAL AND PATRIOTIC VALUES

Henryk Strzelecki Henryk Skarżyński Wojciech Kilar

Jan Ołdakowski

:: CULTURE Anna Maria Jopek Łukasz Kuropaczewski Marek Torzewski :: FOSTERING PATRIOTIC VALUES Tadeusz Mazowiecki :: FOSTERING SOCIAL VALUES Jerzy Owsiak :: SPECIAL HONORARY PEARL Sławomir Skrzypek

YEAR 2007 :: ECONOMY Wiesław Rozłucki Ludwik Sobolewski Jacek Socha :: SCIENCE Alicja Chybicka :: CULTURE Urszula Dudziak :: FOSTERING PATRIOTIC VALUES Ryszard Kaczorowski :: FOSTERING SOCIAL VALUES Zespół Partita Fundacja ProOmnibus

YEAR 2008 :: ECONOMY dr Janusz Steinhoff :: SCIENCE prof. Jan Lubiński :: CULTURE Małgorzata Walewska :: FOSTERING PATRIOTIC VALUES prof. Norman Davies :: FOSTERING SOCIAL VALUES Bożena Walter prof. Włodzimierz Kuźmierkiewicz

YEAR 2009 :: ECONOMY :: SCIENCE

prof. Maciej Nowicki prof. Maria Siemionow prof. Bogdan Marciniec

which will be the continuation of history. Just as the economy needs some vision and strategy, in the case of our national heritage we need to think about what we would like Poland to be like in, say, 25 years, from the point of view of that heritage. And in this area, the voice of a “witness to history” is always significant. Obviously, you always need to choose those voices, as they are not always equally reliable. Polish historiography has long been marked by a somewhat German tradition – of facts, dialectics, attempts at “synthesis which is not a synthesis”. Fortunately this is over now. Polish historians have now

YEAR 2010 :: ECONOMY Janusz Lewandowski :: SCIENCE prof. Karol Mysliwiec prof. Marian Zembala :: CULTURE Janusz Olejniczak Marcin Bronikowski :: FOSTERING PATRIOTIC VALUES Adam Stefan Zamoyski :: FOSTERING SOCIAL VALUES Janina Ochojska :: ART Ewa Gołębiowska

YEAR 2011 :: ECONOMY Marek Belka :: SCIENCE Krzysztof Matyjaszewski Witold Rużyłło :: CULTURE Chór Filharmonii Narodowej w Warszawie

Krystyna Janda

Jerzy Skolimowski :: FOSTERING PATRIOTIC VALUES Jerzy Woźniak :: FOSTERING SOCIAL VALUES Fundacja “Polsat” :: SPECIAL HONORARY PEARL Jerzy Buzek :: ART Michał Stefanowski

adopted a different approach to our history, and also to the reader. They simply know that nobody will publish their books if they are unreadable. They have learned a lot in this respect from Western historians. In 2008, the Pearl award went to Norman Davies, the great British chronicler of contemporary Polish history, and a scholar and popularizer of our history. A one-man institution, accessible to everyone who has any interest in history. And two years ago, the Pearl was awarded to Count Adam Zamoyski, a British historian of Polish descent, the Chairman of the Czartoryski Foundation. :: 11 /2012 :: polish market :: 35

Innovation PROGRESS 2012

Catching up or leaping towards innovation? Prof. Leszek Rafalski Speaking of innovation, we need to be aware of how broad and ambiguous a concept it is. Innovation does not mean solely the production of technologically advanced novelties, which mobile telephones once were, for instance. It also means new applications, as those recently embedded in non-technical creative fields, such as methods of treatment, plant cultivation or administrative systems. Polish research institutes comprise human resources for science and technology, resources which are present in industry, construction, agriculture, medicine, ICT, military science, security, meteorology, environmental protection, veterinary medicine, geology and other areas. Hence, innovation may be understood as bringing about more effective functioning and development of the scientific research sector. Research institutes are responsible for implementing new solutions in the Polish economy. They should play a leading role because by conducting applied research they transfer findings of scientific research into the marketplace. The Polish economy is trying to catch up with other highly-developed countries through an extensive technology transfer. In this regard, the strategy of catching up does not preclude Poland from becoming a leader in the future, provided that suitable niche markets are selected. However, innovation requires bringing together capacities and resources for the development of research infrastructure, while at the same time monitoring their economic efficiency. Because of this, the measures now taken to stimulate innovation in Poland are largely targeted at small and medium-sized enterprises, which may become active actors in innovation and innovation development. Effective since 2010, the new law on research institutes gave our community a number of new opportunities, including the establishment of science and industry centres, whose main objective is to apply research findings in practice and take part in major international projects to achieve greater competitiveness on the international market. Our effectiveness in the “Horizon 2020” programme, for which EUR 80 billion has been earmarked, including for measures to

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enhance innovation, will be a test and challenge for research institutes in the near future. That is why, within the framework of science and industry centres, the research institutes of the Polish Academy of Sciences and the research units of higher education institutions should both work together with businesses. The combined potential of all Polish research units gives us a chance to take advantage of the programme and implement new and interesting projects. The “Horizon 2020” programme will be the main pillar of what is called Innovation Union – one of the most important initiatives of the “Europe 2020” strategy, whose main aim is to improve Europe’s competitiveness in the world. Another objective of the programme is to support international cooperation in order to improve the EU’s effectiveness in scientific research and in tackling global problems. One of the current priorities of the Polish government is to improve and develop the country’s road infrastructure. Thus, the Road and Bridge Research Institute (IBDiM), of which I am director, promotes the development of innovative infrastructure. Unfortunately, the development and implementation of new solutions is met with a number of obstacles, particularly formal and legal ones, which makes it difficult to improve innovation. Despite those obstacles, Polish institutes have conducted and continue to conduct research on, and implement, new solutions used in road infrastructure.

Below is a list of several innovations developed and implemented with the involvement of the Road and Bridge Research Institute: :: Underpinning by grouting of the subsoil below the bases of piles – after the hole for the pile is drilled and before concrete its foundation, there is the grouting system made of a U-shaped pipe installed within the reinforcement. The horizontal part of the pipe features openings is covered with rubber sleeves. Cement grouting under pressure causes the subsoil directly below the pile to be filled. The pile’s loadbearing capacity is thus increased by up to 50%. :: Active Intelligent Road and Bridge Restrain Systems (AIBDiM) – a “smart” barrier is a modern device which actively reacts to the vehicle hitting it, and then adjusts the level of impact energy absorption to the vehicle’s weight. After the collision, it directs the vehicle back to the correct driving path and notifies emergency services. :: Silent surfaces featuring a granulated rubber and asphalt mixture – new types of mixtures for wearing course layers have been prepared and implemented. These are characterized by lower noise emissions during vehicle movement. :: ISKIP - Intelligent Comprehensive Vehicle Identification System – this allows the automatic recognition and identification of vehicles based on their registration plate, type, make, model, and colour. It takes advantage of the solutions that have come about for using neural networks to collect and process personal data from national and European databases. When these are integrated with vehicle weight measuring systems, it can precisely determine all the parameters of an overloaded vehicle. :: New generation of the variable message sign. A consortium of Polish scientific bodies, allied with a contracting company, has developed and implemented a new solution for electronically-controlled signs and information boards with customizable content. ::

The author is Director of the Road and Bridge Research Institute, President of the Main Council of the Research Institutes

Innovation PROGRES 2012

In-

Innovation PROGRESS 2012 novation is an extremely popular word that you come across all the time these days. Every company innovates, implements new technologies and provides state-of-the-art services. Innovation is the ability of businesses to create and implement innovations, as well as the actual ability to introduce new and improved products, new or enhanced technological or organizational processes. The crucial thing is to pick the best ones out of all these groundbreaking solutions. The task was undertaken by “Polish Market” that has organized since 2011 the annual “Progress” competition for the best innovative businesses. “Progress” awards companies and institutions considered the most innovative in a given year. The winners are the entities whose activities and

achievements enable their recognition as ambassadors for innovation. The laureates of the previous edition were the pearls in the crown of innovation: Integer.pl, TP Group, Hydromega, Unikkon Integral, Exatel, Alior Bank, TFP, Ecotech Poland, Ferro and mis24.pl. The title “Progress 2012” has been awarded by “Polish Market” monthly magazine together with the Main Council of the Research Institutes (RGIB), represented by Krystyna Woźniak-Trzosek and prof. Leszek Rafalski respectively. The leading theme of this year’s edition was “New Prospects for Business.” The second edition of the “Progress” awards was combined this year with the jubilee gala of the “Pearls of the Polish Economy”. ::

Innovation PROGRESS 2012

Supporting new technologies Jerzy Majchrzak, Director of the Department of Innovation and Industry at the Ministry of the Economy

W hat is the current state of innovation among Polish business? Since Poland’s accession to the European Union in 2004, the index of expenditures for innovative activities in relation to GDP has been on a continuous increase. This index amounted to 0.56% in 2003, 0.74% in 2010, and the forecast for 2011 is 0.8%.The total value of expenditures for R&D activities has been rising on a yearly-average basis by ca. PLN1 billion. Over the last 5 years, expenditures on R&D have undergone an impressive 76% growth, whereas in the 5 years before that period their level was only 16.2%. Although Poland’s outlays for R&D in relation to GDP are still lower than the EU average of 2%, the growth rate of this index is higher. The average yearly growth rate of the index measured in quota terms in EUR, on a year-to-year basis, amounts to 14.6% for Poland, with the EU’s average at 3.2%. The Innovation Union Scoreboard 2011 has classified Poland in the group of moderate innovators, i.e. countries characterised by a lower Summary Innovation Index as compared to the average in EU Member States, but exceeding the EU average (0.85%) in the growth rate of this index (1.79%). Continued growth in expenditures for R&D activities in Poland can be observed in all categories (companies’ own, from the

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national budget and higher-education expenditures). Outlays from the national budget and spending by private companies have been rising equally, which is contributing to a steady proportion of 2:1 between public and private outlays. The low proportion of private resources in the structure of expenditures for R&D is characteristic of lessdeveloped countries. In the EU15 countries, the ratio between private and public outlays for R&D amounts to 1:1. The situation looks different in the case of expenditures for investments, understood both as outlays for R&D and for the purchase of patents, licences, know-how and advanced machines and equipment. The majority of expenditures for innovations are incurred by companies alone – as much as 70% in the industrial sector and 90% in the services sector. In 2010, the outlays for innovations went up both in industrial (by 4.5%) and service companies (by 30%), with the largest increase recorded in companies’ internal expenditures for research – by 50.6% in industrial and by 84.1% in service companies. At the same time, the purchase of know-how from external sources rose by a notable 240% in the industrial sector and by 34.4% in the services sector. The above data indicate the effectiveness of support granted under governmental programmes and based on the distribution of structural funds for research, development and innovation purposes. This assistance stimulates enterprises to systematically increase private outlays for research and the incorporation of research results into economic practice, hence to boost their innovation. Particularly worth mentioning are the results of projects implemented under the Innovative Economy Operational Programme 2007-2013. Public intervention has facilitated the emergence of new, previously unavailable, instruments of financial engineering, including the National Capital Fund and the subsidies from the Polish Agency for Enterprise Development for business angels. Around PLN15 billion has been allocated to support new technologies and PLN2 billion

to develop a network of business-related institutions fostering innovations in the sphere of pre-incubation. This in turn has solidified the sphere of financial support for companies’ early development stages. The chief challenges we are facing at the moment involve the need to strengthen cooperational and cluster bonds and to persuade entrepreneurs to leverage support for the protection of intellectual property. More efforts should also go into the fostering of collaboration between the scientific and business circles. Do such rankings as the Pearls of the Polish Economy mobilise enterprises to improve their innovation performance? Contests and rankings which promote the most competitive companies mobilise entrepreneurs to learn from the best and to seek opportunities for the creation of new product and process solutions, in order to stand out in the market. When entrepreneur’s hard work is publicly appreciated and awarded with a prestigious distinction, he or she feels encouraged to keep on devising novel solutions. Receiving a coveted business award enhances the company’s prestige and acts as an incentive to retain the position of innovation leader. The Pearls of the Polish Economy ranking takes such criteria into account as high revenues from all company’s operations (at least PLN100 million) and business efficiency. Based on these aspects, it is possible to determine which companies, over the last three years, have made the most substantial progress in the utilisation of the three production factors - capital, tangible property and labour. Only entrepreneurs employing innovation in their activities can meet these three, very demanding, criteria. At the same time, what’s important is that they do not focus exclusively on the efficiency of financial management, but also attach importance to the optimum use of employees’ intellectual capital. Becoming the leader in the efficient management of property, financial and human capital can only be achieved through constant upgrades to the management and production processes, as well as improvements in personnel qualifications. All businesses listed under the Pearls of the Polish Economy, especially those at the top, have truly earned their names as innovative entities, and deserve distinction in this prestigious ranking. ::

Innovation

Innovation on a global scale Professor Henryk Skarżyński, creator and founder of the World Hearing Center.

The World Hearing Center is a unique institution, the first one of its kind in the world. Its establishment is of great importance for the development of science, for the search for new ways of diagnosing and treating defects of the senses, but also for the integration of the scientific community around the interdisciplinary problems that have a significant impact on the development of a modern information society, based on knowledge and communication. All the activities of the Center fit within the scope of the process of communication. They are not specific to Poland, nor are they specific to Europe. These are the challenges facing the contemporary world. When creating the guidelines and the action plan for the Center, I took in consideration the aspects concerning various scientific areas, not only medicine. I wanted this institution to encourage - through its scientific activity - building a new image of Polish science and medicine abroad, and to open up new directions for action. The Center is not meant to compete with anyone. We simply intend to take up challenges that do not fit into the strategies of today’s more or less hierarchically structured science and medicine. I can see similar initiatives being pursued elsewhere in the world. This means that we initiated a new network of the so-called Reference Centers which, by performing the underlying research, clinical and teaching tasks, will be able to accelerate the use of the latest technologies for the sake of a particular person, a specific population or the whole society. Foreign scientists already visit the Center to learn and complete together the most challenging tasks. Something that seemed in the past (and to our mentality) absolutely unrealistic becomes available at your fingertips. The challenge ahead for me and for my team, as well as for a number

of our collaborators is not to squander this great opportunity. The innovation of the World Hearing Center consists primarily in the use of telemedicine. The world’s first National Network of Teleaudiology includes 20 stations located across the country which enable telerehabilitation, telediagnostic visits and

telefitting (remotely controlled selection of parameters of electrical stimulation of the auditory nerve in patients with cochlear implants). Another reason why the Center can be considered innovative is that it develops, on an internationally unprecedented scale, a number of research programs for diagnosis, treatment and rehabilitation of various disorders affecting hearing, voice, speech, balance and breathing. Another example worth mentioning is the Bioimaging Research Center, the first center in Poland, established three years ago, to conduct research and clinical studies using advanced imaging methods such as functional magnetic resonance imaging. The World Hearing Center was created as a result of years-long systematic work both in Poland and internationally, including building partnership relations with scientists from various fields. The Center emerged as an independent project that made use of what had already existed and gave excellent results. Its creation met the needs of the Institute of Physiology and Pathology of Hearing, by for example enhancing its scientific potential and clinical infrastructure, as well as the huge social demand for the development and implementation of new medical and IT solutions. How to achieve such a success in innovation? You have to identify the need, the problem, and believe in what you are doing. Only determination and hard work guarantee success. When you love your work, as I do, you take pleasure in it. A short answer is like a camera flash, but there is a great organic multidimensional work behind it, performed in various conditions, which sometimes are favourable and sometimes are not. If I emphasize the importance of this work, it is to make you realize that it is not a miracle, it was not created out of nothing, and will not keep going without a good action plan. It is in five, 10, or preferably 15 years’ time that it will be possible to assess the value of these efforts and their importance for the further development of science and medicine both in Poland and internationally. :: 11 /2012 :: polish market :: 39

Innovation

Big Data – Quick Start Guide

Patryk Choroś, Senior Account Executive, SAS Institute What is Big Data? The world of analytics has coined a new term, a new trend – Big Data. This term describes the exponential growth, availability and business use of information, both structured and unstructured. Data today comes in all types of formats – from traditional databases and financial transactions to text documents, email, video and audio. By some estimates, 80% of an organization’s data is not numeric! But it still must be included in analyses and decision making. Big data is often found in areas previously not classified as sources of information relevant to gaining competitive advantage, such as social media. This is a natural consequence of the on-going digital revolution and a development which, in fact, could have been expected. Still another consequence is that organizations have started to seek the business value embedded in ever-growing data volumes, bringing into play the concept of High-Performance Analytics. All in all, thanks to the combined power of high-performance computing technologies and advanced analytics, big data has turned into a critical source of meaningful information of unprecedented business value.

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In the past, organizations used to strive for operational excellence. They attempted to create business advantage through well-structured processes (e.g. production processes), implementing ERP systems and operational reporting. The next logical step was to analyze the causes of ongoing events and seek insight from existing data sets – this is how Business Intelligence systems and the first Data Warehousing solutions emerged. Enterprises took pride in their database platforms and analytical tools capable of identifying existing data patterns, such as standard or ad hoc business reports, OLAP or alerts and notifications based on analytics. Later on, we began competing on analytics: predicting customer behaviour (e.g. through churn forecasting) and optimizing, especially supply chains, marketing actions and price lists. This involved predictive modelling, regression analysis and other advanced methods for proactive decision making. However, nowadays those advanced software solutions supporting forward looking decisions no longer suffice. New trends are emerging as advanced analytics ventures into the unstructured data

space using such technologies as text mining or sentiment analysis. More and more organizations wish to be at the forefront of analytic innovation and feed their predictive models with the depth of insight buried in emails, call center notes and even social conversations. At the same time the complexity of business models in which the largest companies operate causes the value chain delivered to customers to lengthen considerably. Simple product promotions are no longer enough. We constantly hope to rise higher up the pyramid of “experience economy”1, heading in the direction of delivering not just products and services, but a complete experience spectrum which allows us to expect higher margins and increased customer loyalty. Such expansion of the value chain augments the scope of information which must be addressed on a daily basis throughout the decision-making process. On top of that, products and services that go to the market are increasingly complex, strongly customized and the result of cooperation of numerous stakeholders. A complex, customized “Experience economy” by Joseph Pine II and James H. Gilmore

Innovation product or service additionally increases the number of related information. In addition, we must bear in mind that such information comes not only from within our own organization (where we can theoretically control it, affect its structure and acquisition), but also from the outside. This often implies having to adjust to it.

directly it should translate into execution of the company’s strategy and growth. It should also be in synch with user needs and expectations.

Let us sum up this new business environment: :: high data volume resulting from complex processes, customization and a tendency to adjust our products and services to individual customer groups, :: unknown origin, structure and content of data we want to use in our analyses, :: high variability in time due to the dynamics and complexity of economic models in which enterprises operate.

First, a business issue or hypothesis is formulated. Then data is identified and prepared for analytic purposes and the analytic model is constructed. Later the model is assessed and implemented. Finally the conclusions are drawn, which may lead in turn to the formulation of further hypotheses, as shown in the example above.

One more phenomenon may be worth pointing to – access to reports and data is an increasingly common practice within organizations. At all decision-making locations, individual stakeholders expect to be empowered to analyze vast data sets and be proficient in the use of advanced analytics. Is it worth it? Yes it is, most definitely. Let us consider a hypothetical conclusion-drawing process – embedded in a standard flow from problem formulation through collection of necessary data to preparation of an analytic model and evaluation of the resulting conclusions. As can be seen in the above example, an efficient conclusion-drawing process, supporting the solution of a predefined business problem, involves various pieces of information, requires the ability to search for correlations among data sets that have not been crossed before and is a process that often modifies the initial hypotheses and requires frequent preparation of new data sets supporting the analysis of a given scenario.

The standard process of analysing users expectations remains unchanged and consists of subsequent steps which add up to a closed cycle:

The primary need and aim of business users is to embed the on-going iterations into the model and to draw conclusions from the model (i.e., on the above chart, to shift the focus of activities from the right-hand side to the left-hand side of the cycle). It is at this stage of the analytic cycle that a significant portion of the business value resides and employees acquire unique, innovative knowledge about business operations and the relevant phenomena and factors that must be taken into account in the future. Analysts expect to be able to test their hypotheses without any limitations, and to have access to a broad range of analytic functions and tools. They expect to see a shift in focus from data work onto conceptual work – this idea underlies the construction of big data environments. What they are hoping for is unrestricted freedom of data analysis. There is one more trend emerging in the business world which should be addressed – users expect access to information and analyses at any place, Identify/Formulate Problem

Data Preparation

Medicaid usage is on the rise. Why?

Data Exploration

any time. This is due to the popularization of mobile access to computer networks and mobile devices (smartphones, tablets). If we want users to be satisfied with their analytic environment we should take good care of that aspect and select tools that ensure the synergies of access to analysis irrespective of the equipment used: a PC, laptop, tablet or telephone.

Components of Big Data Environments There is yet another perspective worth examining: that of an IT Department responsible for keeping the big data environment up and running efficiently. IT is emerging as equal partner to frontline business departments in the creation of competitive advantage and ensuring that new undertakings remain profitable. Owing to cost-saving optimization measures, the efficiency of systems and services, far-reaching plans of hardware and system infrastructure development and staff expertise, the IT department is no longer a service unit, but rather a strategic resource in an increasingly competitive market. As for analysts, the issues and aspects illustrating their expectations may be structured to produce four main roles in the analytic process loop: :: Business Area Manager – takes decisions on the basis of conclusions drawn from the analyses, assesses the processes and specifies the potential for business advantages, :: Data Explorer – is responsible for the process of providing data for analysis, possibly enhances the data with additionally calculated measures, defines the correlations between data sets, thus allowing their correlation during analysis, :: Business Analyst – formulates and tests business hypotheses; is responsible for building, launching Transform & Select

Build Model

We should pull all of the claims data from the EDW.

Validate Model

Deploy Model

Source: SAS Institute

Evaluate/Monitor Results

We should analyze population changes and see if general growth is the cause,

User Expectations Actions aimed at upgrading the IT environment should always be carried out with a clear picture of future benefits in mind. Indirectly, it should affect business processes and users, and

Perhaps unemployment rates are related to an increase in program benefits?

Are local strong benefits influencing population move?

Does the access index provide any insight into why medicaid is on the rise?

Are the cost of the claims processed the underlying issue?

Are they any catastrophic events that could have had an impact?

Does the recession impact employment?

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Innovation

IDENTIFY/ FORMULATE PROBLEM

EVALUATE/ MONITOR RESULTS

DATA PREPARATION

DATA EXPLORATION

DEPLOY MODEL

VALIDATE MODEL

TRANSFORM & SELECT BUILD MODEL

Source: SAS Institute

and assessing the operation of the analytic model or statistical survey carried out on the basis of the data; draws conclusions on the basis of acquired knowledge, :: Analyst Developer – prepares visualizations and reports facilitating the generation of required information from analyses, uses the results obtained by business analysts, creating cyclical analyses for business support purposes. Let us point out that the role of the Data Explorer may be successfully pursued by the organization’s IT department. Actually, more and more often IT experience and knowledge of data transformation and storage, enhanced with knowledge of source systems, proves to be crucial in this class of tasks. The construction of an IT system compatible with big data should be executed in consideration of the above roles. The analytic system should be equipped with tools addressing the above roles and meeting their specific needs. In terms of technology, solutions currently available in the market are based on one of the following three concepts: :: in-memory processing :: in-database processing :: grid computing Each of the above processing options makes it possible to take advantage of the latest technology advancements by way of focusing on a specific aspect of infrastructure architecture.

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In-Memory Analytics divides analytic processes into easily manageable pieces with computations distributed in parallel across a dedicated set of blades. This allows for concurrent, inmemory and multiuse access to structured and unstructured data, making it possible to run new scenarios or complex analytical computations blazingly fast. You can instantly explore, visualize and analyse data and tackle problems you never before considered due to computing constraints. In-Database technologies use a massively parallel processing (MPP) database architecture for faster execution of key data management and analytic development and deployment tasks. Relevant tasks are moved closer to the data, and computations are run inside the database to avoid time-consuming data movement and conversion. Grid Computing lets you create a managed, shared environment for processing large volumes of data and analytic programs quickly using dynamic, resource-based load balancing. You can split individual jobs and run each piece in parallel across multiple symmetric multiprocessing (SMP) machines using shared physical storage. This enables IT to build and manage a lowercost, flexible infrastructure that can scale to meet rapidly changing computing requirements. The strengths and weaknesses of all the three computational models mentioned above deserve a close look, which unfortunately exceeds the scope of this article. To give an example, in-memory processing potentially delivers higher efficiency and shorter periods of task and model calculation, while in-database analytics (especially in the case of dedicated database appliances) ensures optimal use of hardware power both in data processing and data analysis. At this point it may be worth mentioning that many providers of big data solutions offer their products in conjunction with specific hardware, and sometimes serve as single source for both. The construction of an analytic system on the basis of such a match is a strategic decision making the organization dependent on one hardware provider and preventing the utilization of existing infrastructure. This must

also involve the assessment of the environment’s scalability and total cost of ownership. SAS combines the advantages of all of the above technological strategies, enabling the user not only to leverage the power of servers for in-memory calculations, but also to use in-database analytic functions offered by the servers. As regards SAS solutions, one additional aspect is worth mentioning: the possibility of constructing grid computing systems. This enables flexible scaling of the solution in line with changing business needs and boasts an additional advantage of platform reliability. All these strategies have been combined into one coherent architecture, so that the end users are presented with one analytic system that adequately builds on the strengths of each processing strategy to enhance platform efficiency.

Solid bridge spanning IT and business All the issues presented above must be taken into account when formulating the strategy for providing organizations with an environment supporting big data analytics. The IT department is welcome to take an active part in defining this strategy, building on the experience gained from existing analytic systems. The newly created platform should complement existing solutions. Their logical architecture, tools used in their construction and business processes related to change management require an intelligent blueprint that would help them make the transition to big data analytics and ultimately meet expectations. Integrated big data platforms have all it takes to permanently alter the decision making landscape and take existing analytics capabilities to new functional levels. Their early enactments are already in place at organizations, in the form of simplified repositories created directly by analysts. Now the timing seems perfect to support them with state-of-the-art big data solutions so that they can utilize their hidden potential to create next generation business opportunities. IT can successfully deliver that quality, forming a unique bridge between technology and business, and expanding the existing data warehouse architectures with big data components. ::

Innovation

SAS Forum 2012

Innovation in Business Maciej Proliński Alicja Wiecka, managing director of SAS Institute Polska, opens the conference

The conference “Digital Economy – Opportunities and Solutions,” held in October by SAS Institute, a global leader in business analytics and business intelligence, as part of the traditional SAS Forum meetings provided an opportunity to talk about the challenges and opportunities brought about by the era of big data and the digital economy. The business part of the conference, called Business Day and held at Warsaw’s Marriott Hotel on October 9, was devoted to key issues associated with information management at a time of the rapid growth of the digital economy. The second part of the conference, Technology Day, held at the SAS Innovation Hub on October 10-12, was an opportunity for the participants to get to know the latest SAS technologies. More than 350 participants representing firms and institutions from the banking, insurance, telecom and energy sectors, took part in the business part of SAS Forum 2012. The programme featured presentations on the innovative strategies and solutions

which open quite new business opportunities and are translated into business success in the age of the digital economy. Simon Torrance, a world-class expert and the founder and CEO of STL Partners, a British firms specializing in business model innovation and the coordination of the Telco 2.0 and Digital Commerce 2.0 initiatives, addressed the opening session. He spoke about the innovative strategies and business models which create new trends and inspire businesses to build innovative product and service lines, which give them a competitive advantage. Later in the day, the conference was divided into four thematic sessions held simultaneously: Business Analytics for Marketing, Big Data Analytics, Business Analytics for Fraud & Risk and Data Governance. The sessions offered participants an opportunity to get familiar with the best practices on the Polish market associated with the use of SAS solutions in various business sectors and areas. SAS customers spoke about their experiences: T-Mobile made a presentation on the

Photos: SAS Institute Polska

Technology Day at SAS Forum 2012: Presentation by Rob Stephens of SAS

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Special guest of SAS Forum 2012 Simon Torrance, CEO of STL Partner

efficient use of data mining in marketing, PZU SA presented its analytical project for customer relationship management (CRM) and data governance as an element of its information management strategy, and the Central Statistical Office (GUS) spoke about transforming administrative registers into statistical data sets. Also presented was a system for identifying and verifying insurance offences using data collected by the Insurance Guarantee Fund (UFG). The programme of the Technology Day included presentations of changes made to SAS tools and solutions in the past year, and new solutions to be offered by the latest version of SAS®9.4 software. Two specialist thematic sessions were held for more advanced users of SAS solutions: Coders’ Corner for programmers and developers and SAS Solutions Administration for administrators responsible for SAS systems and for developing the SAS environment at organizations. Additionally, live programming shows were held during the PowerPoint Free session. During the Forum, SAS Institute offered its customers a modern multimedia conference and training centre, SAS Innovation Hub. It is mainly intended to enable efficient knowledge transfer and the development of skills in the area of leading business analytics and business intelligence solutions and technologies. It is a perfect venue for business conferences and seminars, training sessions and workshops, meetings and presentations. ::

Innovation

O&S Computer-Soft

– designs for the 21st century The ICT market in Poland is now in its Golden Age. The industry is developing, and the companies involved in it are intensely competing for clients, which results in more and more modern business support solutions. Our only task is to choose to whom we commit the responsibility for the development and support of our interests. In this situation, it is worth focussing on knowledge and experience. These are the values which, in connection with such terms as new technologies, innovation and development, best describe the O&S Computer-Soft company. O&S Computer-Soft has unique competence enabling comprehensive customer services in terms of implementing IT, electronics and ICT projects. Its extensive experience and a strong team of IT and electronics specialists guarantees the completion of even the most complex projects - from the design to the completion stage. Each project implemented by O&S Computer-Soft is tailored to the Customer’s expectations. The company creates the product together with the Client, accompanying them at the stage of establishing requirements and system design, then in creating solutions, and finally in maintaining and developing the system. O&S Computer-Soft is distinguished in the fact that it implements its project based on its own intellectual resources. Thus, a team of IT, ICT and electronics specialists is tasked with completing the whole project from start to finish. Due to this fact, short completion deadlines, low costs and the highest quality can be ensured. The year 2012 is a special year for O&S Computer-Soft. This is the year of the 20th anniversary of the company’s operation on the Polish IT market. “When I founded this company in 1992, the ICT market in Poland was still in its infancy. Today, after twenty years, this is a dynamically-developing industry, among others, thanks to O&S

Computer- Soft. From the very beginning, we‘ve had the words of Lord Kelvin in mind: “To measure is to know - if you cannot measure it, you cannot improve it.” Thus, our inspirations were high. Today, after twenty years, I can say that we have managed to rise up to the challenge. This can be confirmed by the numerous awards and distinctions we have gained - and – what makes us most content – the trust and satisfaction of our Clients,” says Eugeniusz Orłowski, President of the Board of O&S Computer-Soft Sp. z o.o. For the twenty years of its operation, the Company has introduced many innovative solutions to the Polish market. Their value has been confirmed by the numerous awards and distinctions granted to O&S Computer-Soft, for instance, achieving the 45th position out of 3779 entries in the “Gazelles of Business” ranking, being twice nominated to the Chapter of the “Teraz Polska” Foundation, receiving an award of distinction in the “Polish Product of the Future” competition and receiving the “Kruszec Biznesu” statuette three times. “Quality has always been a priority in the company’s activity. I am glad that the distinctions which we have received confirm that this activity is at

Eugeniusz Orłowski, President of the Board of O&S Computer-Soft Sp. z o.o.

the highest possible level. This is owing to our company’s entire team of specialists who contribute to their work, not only knowledge and skills, but also passion and enthusiasm,” President Orłowski comments. The company specialises in creating systems and programs for ICT networks. Since 2011, within the Innovative Economy Operational Programme 2007-2013, work is being carried out on the newest project entitled Pegasus. This is a device which will considerably rationalise and improve the quality of operation of ICT networks in terms of broadband access to the Internet. The project is an innovative solution, not only in Poland, but also in Europe. It was created due to cooperation with a group of scientists from the Silesian and Wrocław Universities of Technology, as well as numerous research and scientific centres from all over Poland, including Orange Labs. Apart from this, the company is developing its activity in other areas of the ICT industry. Its portfolio includes a number of applications created to support corporate management. O&S Computer-Soft is not only a reliable and trustworthy business partner; it is also a group of people aware of the challenges faced by 21st-century business. Putting the principle of corporate social responsibility into practice, O&S Computer-Soft supports local cultural, social and sports initiatives. “People are our priority. It’s them whom we create for and whom we give opportunities to. We know that today’s business is not only about making money. We are also aware that investment in human capital is the best investment we can make, so we organise training and internship programmes for young, ambitious people who wish to develop their skills. We also support local sports teams and we actively participate in the cultural life of the communities in which we live. This is how sensible business should be like in our times,” recapitulates President Orłowski. :: 11 /2012 :: polish market :: 45

Innovation A presentation of the Husar locomotives in the colours of national teams participating in Euro 2012 on the Warszawa Stadion station

Intercity growing wings One of the pearls among the railway companies within the PKP Group is PKP Intercity. It owes its strong position to the effective introduction of innovative organizational solutions and investment in state-of-the-art rolling stock and devices.

Since its inception, the railway has been a driver of economic growth and a symbol of progress. This is still its role in the 21st century – the achievements of TGV in France and the highspeed rail in China, Japan, Spain, and Germany are impressive and worthy of recognition. It is these exemplary solutions that PKP Intercity draws upon when implementing innovative solutions in all fields of its activity.

36 million passengers PKP Intercity is the largest Polish rail operator, providing long-distance passenger connections with over 300 trains in the domestic network and over 50 operating internationally. Last year its trains carried 36.6 million passengers, and 1.8 million took advantage of international connections. This year saw particularly large numbers of football fans travelling by train. Organizing an efficient rail transport between the host cities of the European Football Championship was a great challenge for PKP Intercity. As many as 1,060 scheduled and additional trains were launched, and there were also

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extra trains and information points. The test that was UEFA Euro 2012 was passed by PKP Intercity with flying colours. The poll carried out by the PL.2012 company confirmed that 76% of fans were satisfied with the way the railways operated during the country’s largest sporting event. They had at their disposal modernized stations and comfortable, faster trains. The fastest locomotives operated by PKP Intercity are the Husars, which were painted in the colours of Eeuro 2012 national teams during the championships. During the tests run in 2009 on the Main Railway Line, the Polish Husar reached a speed of 235 kilometres per hour. The highest maximum velocity achieved by new PKP Intercity trains was 200 kilometres per hour. Such speeds are achieved on certain rail sections outside the borders of Poland by the EuroNight, Jan Kiepura and EuroCity Wawel trains. There are more and more modernized lines in the country, allowing PKP Intercity fast trains to run at speeds of 160 kilometres per hour. Such speeds are achieved by trains running between Warsaw and Poznań, Kraków,

and Katowice, which makes travelling to these cities a matter of less than 3 hours. An asset of PKP Intercity is its extended network of domestic and international connections and a variety of ways to spend travel time effectively. The cars of Express Intercity (EIC), Express (EX) and international EuroCity (EC) trains - fully bookable, with air-conditioned interiors and a restaurant car with a varied menu provide an excellent environment for work, preparation for an important meeting, and leisure. You can book a special comfortable manager’s compartment or even a conference wagon for training and multimedia presentations en route.

More speed and more comfort “In our activities we give priority to investing in rolling-stock and developing modern sales channels. All this to ensure that passengers travel at the highest possible standards and that they can buy a ticket at any time anywhere. Passengers are always our focus,” states Janusz Malinowski, president of the Board of PKP Intercity. This year PKP Intercity will spend nearly PLN2.3 billion on rolling-stock. May 2011 saw the signing of a contract for the purchase of 20 Pendolino high-speed multiple units. According to predictions, they will allow trains to get from Warsaw to the seaside in 2 hours 30 minutes, to Kraków in 2 hours 15 minutes, and from Kraków to Gdańsk in 4 hours 55 minutes. The contract provides for the delivery of 20 trains which (on some sections) can reach speeds of 220

Innovation PKP Intercity invites all children to the Young Traveller’s Zone

EuroNight Jan Kiepura connects the capitals of Central and Eastern Europe

kilometres per hour, the construction of technical facilities in Warsaw and the technical maintenance of the units for 17 years. The first trains will start regularly operating in mid-2014, but they will be seen on Polish tracks in mid-2013, when they are going to be tested for certification. The technical acceptance will coincide with the end of modernization work on railway tracks. There are also other projects implemented with EU funding. For the first time since 2008, the company is going to purchase 25 new classic passenger cars. The value of this contract will amount to PLN175 million. Over PLN178 million will be the cost of the modernization of 68 PKP Intercity cars, which will run at speeds of 160 kilometres per hour. They will be equipped with facilities for people with disabilities, special racks for carrying bicycles and air-conditioning. The renovated cars will operate on railway lines from Szczecin to Przemyśl, Gdynia and Wrocław. In 2012, a total of 1,000 cars and 150 locomotives will be repaired and renovated.

Passenger-friendly “In my view the Intercity brand and products are much stronger today than they are perceived by the market. PKP Intercity is often identified with the broadly-understood railways. That is why it is key to highlight Intercity on the market. Our actions must be based on business conditions, but if we are to be perceived as a carrier of choice, we have to adjust to the needs of all client segments,” says Marcin Celejewski, member of the Board for Commercial Affairs at PKP Intercity.

The image of PKP Intercity as a modern and well-performing carrier is bolstered by the organizational and technological solutions introduced to increase passengers’ comfort and to meet their expectations and demands. When planning a journey, they may take advantage of a number of bargains and special offers. It is also easier for them to purchase tickets, as modern ticket sales channels - via the Internet and ticket machines - are being dynamically developed, and also thanks to the BILkom service for mobile phones. Our relationship with clients is kept close through modern communication channels, such as Facebook, newsletters, the “W podróży” onboard journal and, naturally, an active website on which you can buy

Customer Service Centre at the railway station in Wrocław

tickets or get updated on the news and see the available bargains. Rafał, the electronic ticket inspector has become particularly popular on the web, as well as an application allowing you to listen to all the information provided on the site. An important element of building a positive image is still the direct and friendly service provided by the employees of ticket offices, information points and train staff. Their smart clothes and kind smile are the best recommendation of the company. While constantly improving the quality of services, PKP Intercity gives a lot of attention to connecting with its clients, also the potential ones, who will have to wait a dozen or so years to

make their own decisions. That is why the company initiated a promotional package for children. Family tickets are sold with colouring books and crayons for children, and also books about railways, which encourage them to learn English and German words which might be of use in travelling across the world. The youngest travellers can also take advantage of special cars with a separate fun zone. The special cars are available on trains running to the mountains, and, during the summer holidays, also those going to the seaside. The company also engages in a number of cultural projects. It supports such institutions as the National Museum in Warsaw, various events and festivals, including the Orange Summer Cinema and Plus Camerimage, and also interesting music albums and books. The diverse and innovative promotional campaigns which are supported by the constant improvement in service quality make PKP Intercity passenger-friendly. :: 11 /2012 :: polish market :: 47

Innovation

Even more innovative,

even more competitive “The Directions and Principles of Cluster Policy in Poland until 2020. The Recommendations of the Working Group for Cluster Policy” is a report as part of an undertaking devised by the Polish Agency for Enterprise Development, “Polish Clusters and Cluster Policy”. It was drafted for future cluster policy with reference to the guidelines of administrative documentation, including Poland 2030. The Third Wave of Modernity, the National Strategy of Regional Development and the National Reform Programme Europe 2020. Ewelina Janczylik- Foryś These documents point to the need for accelerated growth and increased competitiveness in the Polish economy and the necessity to support economic growth based on regional and local specialisations, especially within the framework of cluster initiatives. The aid for clusters should be implemented in the following areas: research and development (R&D), international expansion of Polish businesses, improving the quality of human capital, stimulating industrial cooperation and creating new businesses. Nevertheless, the clusters with the highest competitive potential should be aided in the first place. Therefore, bolstering the innovativeness and competitiveness of the Polish economy should be the main goal of future cluster policy. Already existing and emerging clusters should be supported by financing so-called cluster coordinators, which are entities responsible for activating cooperation within a cluster. Through such action, it would be possible to maintain the functioning of the institutions which are vital

The cluster policy entails the integration of the available public support, focussed on the selected clusters, which are of pivotal importance, and the competitive potential of the economy of the country and respective regions, as well as part of an intelligent domestic and regional specialisation.

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for the development of cooperation, interaction, and the flow of knowledge within the borders of various business clusters, and subsequently increase their competitiveness and innovation level. The cluster policy also entails the integration of the available public support, focussed on the selected clusters, which are of pivotal importance, and the competitive potential of the economy of the country and respective regions, as well as part of an intelligent domestic and regional specialisation.

The question is: how do we select these most important clusters? It seems that the advisory groups have covered this topic. It is recognised that the choice of clusters should be made, at the domestic level, with the help of the ministries and agencies which later would fund the projects implemented by the entities in the cluster and their consortia. The number of the so-called, key clusters should be restricted. We cannot create an economy competitive in every field. It is more beneficial to select specific, competitive and innovative aspects of the economy and then specialise in those. The starting point for choosing the key clusters should be their substantial economic potential, which could be further developed by technological and non-technological innovations, and their substantial scientific and technical potential,

with the chance for prospective technology advancement and the transfer of knowledge. The selected clusters would receive financial support from public funds, through the implementation of concentration, coordination and integration mechanisms of publicdevelopment support. Concentration would consist of selecting the key clusters, both at the national and regional levels, whereas coordination and integration would provide the assessment of the projects submitted to various support and operational programmes. The presented principles differ somewhat from those currently-applying, as, through cluster coordination and concentration, they create a more complex model of the cluster policy. Moreover, they stimulate the appearance within clusters of new cluster initiatives of substantial economic and research-and-technological potential. The advisory group recognised that cluster development consists mainly of the development of existing business and the creation of new companies. The cluster development also entails the inflow of capital and human resources, as well as the creation of educational institutions training the personnel with specific skills and qualifications, and research facilities generating knowledge and conducting research, whose results can be utilised by the cluster’s businesses. The report estimates that the Polish economy can steadily develop on the basis of clusters till 2020. The competitiveness and innovativeness of the economy will bring about a boom. New intelligent technologies and specialisations will develop, due to intercluster cooperation, which in turn will attract foreign investors. All we have to do is hope for the implementation of the principles of the report, thanks to which Poland will become an investment-friendly region for new entrepreneurs. ::

Innovation

Waiting for speeds of 30 Mbps and above At the end of 2011, nearly 6.7 million Polish people had fixed Internet access while over 3.3 million had mobile access. This translated into Internet penetration of 74.4% for households and 26% per 100 population, according to the “Report on the State of Telecommunications Services in Poland in 2011” published in June by the President of the Office of Electronic Communications (UKE). Jerzy Bojanowicz Unfortunately, although in 2011 the penetration rate increased year on year by 2.9 pct. points per 100 population and by 8.1 pct. points for households, the percentage of people with fixed Internet access was equivalent to the EU average for the second half of 2007 and was by 10.4 pct. points below the EU average for 2011. In terms of Internet connections per 100 population, Poland was ahead of only Bulgaria and Romania. One of the priorities of the Digital Agenda for Europe is to ensure

access to fast and ultra-fast Internet of 30Mbps or more to all EU households by 2020 and speeds of at least 100Mbps for at least 50% of EU households. Meanwhile, according to the European Commission’s annual report on the implementation of the Digital Agenda published in June, broadband Internet is available to 76.7% of the Polish population. This percentage is the lowest in the EU and much below the EU average of 95.3%. In poorly urbanized areas in Poland, broadband Internet is available to only 58% of the local population, compared to the EU average of 82.5%. In this respect, Poland ranks ahead of only Slovakia and Bulgaria. However, demand for Internet access is steadily growing in Poland as is the number of high-speed connections. Around 73.8% of all connections offer speeds of 2Mbps or more.

Internet access Access to the Internet is mainly provided by means of 2G/3G modems, xDSL connections, modems of cable television operators, LAN-Ethernet networks and wireless WLAN connections. The largest number of broadband Internet users have mobile access, which has become the most popular form of using the service. The remaining technologies – mainly CDMA, WiMax and FWA – were used by around 2.7% of the Polish consumers.

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Thanks to the high popularity of mobile Internet, in 2011 Poland was one of the countries with the highest mobile Internet penetration rates. With a penetration rate of 8.3%, 0.2 pct. points above the EU average, Poland was in ninth place among the EU countries. Finland topped the league table, with a penetration rate of 52.8%. 2G/3G modems, which were used by over 3.33 million users, an increase of nearly 19.5%, became the most popular form of access to the Internet, superseding the previously dominant xDSL connections. The service was provided first of all by four mobile operators, who held 95.6% of the clients between them, and the Cyfrowy Polsat company, which on August 30, 2011 started to sell long term evolution (LTE) services. The service enables users to receive data at a speed of up to 150mbps (ultimately up to 326Mbps) and send data at a speed of up to 50Mbps (ultimately up to 86Mbps). On August 20, 2012, the Office of Electronic Communications invited tenders for 1,800MHz frequencies designated for mobile and fixed telecom services. The frequencies may be used to render mobile data transmission and fast Internet services. One should remember that in Poland, in contrast to many other European countries, mobile Internet does not complement a fixed service, but is the only opportunity for most users - because of technical reasons - to get access to the Net. In 2011, over 1.96 million users, almost 0.16 million more than in 2010, used Internet access services provided by cable television operators. The operators offered high speeds at attractive prices, especially in comparison to xDSL, with 70.9% of their connections having speeds of 10Mbps or more.

The world’s fastest mobile internet at Cyfrowy Polsat! We have sped LTE Internet up to 150 Mb/s. It has never been so fast!

LTE up to 150 Mb/s

www.cyfrowypolsat.pl

Promotional offer for new Customers, limited geographically to areas with the Cyfrowy Polsat network coverage. Detailed information can be found in the Terms and Conditions and the Promotion Terms and Conditions available at www.cyfrowypolsat.pl and in Cyfrowy Polsat Authorized Retail Points. Detailed information is available in the Terms and Condition of the “Internet dla Każdego – Trafny Wybór” [“Internet for Everyone – Good Choice”] Promotion.

Innovation

Catching up with Europe Such countries as Bulgaria, Romania, Poland and Slovakia are catching up in terms of Internet penetration very slowly and the process may take longer than previously expected, according to the European Commission’s report. Unfortunately, only 3.5% of all Internet connections in Poland are next-generation access (NGA) connections, compared to the EU average of 11.8%. Also, the percentage of the fastest connections with speeds from 30Mbps to 100Mbps or more is five to seven times lower than the EU average. But data published by the Organization for Economic Cooperation and Development (OECD) on July 18 are heartening. They indicate that Poland has the fastest rate of growth in fixed broadband Internet access among highly industrialized nations, with more than five in 100 people having gained access to fixed broadband Internet in the period from June to December 2011. As regards Internet access via radio, including through mobile networks, Poland is among the world’s top 15 nations. Britain, Switzerland and Holland are at a similar level. EU funding designated for the development of the Broadband Network in Eastern Poland, Europe’s largest ICT project worth PLN1.2 billion, offers hope for improving Internet availability in Poland. A backbone network will be built in the five provinces of eastern Poland to enable local telecom operators to offer broadband services. The development of the telecom infrastructure will contribute to gradually reducing digital divide in these parts of Poland. Participants in the conference of the National Broadband Forum held on April 26, 2012 under the slogan “Next Step” talked about the implementation of this project and similar projects carried out by other province

In 2010, almost 9 million Poles had access to the Internet and it contributed 4.8%, or PLN68 billion, to Poland’s GDP. Under the most optimistic scenario, in 2020 Internet may contribute 13.1%, or PLN345 billion, to Poland’s GDP, with 28 million Poles having access to high-speed Internet.

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governments. The conference, attended by around 250 people representing the telecom sector, local governments and non-governmental organizations, was opened by Magdalena Gaj, president of the Office of Electronic Communications. She said that a special law designed to streamline investment processes in the telecom sector had been in force for two years and time came to look at what worked and what did not. According to Magdalena Gaj, a major problem of all broadband infrastructure programmes in Poland funded by the EU is the lack of coordination among them. “It is necessary to make the next step and coordinate these programmes, which means coordinating the construction of regional backbone and distribution networks with last-mile projects (Operational Programme Innovative Economy, Measure 8.4) and then coordinate these with projects carried out under Measure 8.3 of the Operational Programme so that local governments applying for EU funding for counteracting digital exclusion could use infrastructure developed thanks to Measure 8.4 of the Operational Programme.” Iwona Wendel, deputy minister of regional development, spoke about effects of EU support at a conference entitled “Broadband Networks. Regional Backbone and Distribution Networks – Planning, Implementation and Operators’ Activity. Last Mile – Funding and Implementation” held on August 28, 2012. “Under the Regional Operational Programmes and the Programme for the Development of Eastern Poland, there is a plan to build more than 18,000 kilometres of broadband Internet networks providing Internet availability to 4.8 million people. But contracts already signed indicate that at least 24,000 kilometres of networks will be built, with more than 6.5 million people gaining an opportunity to access the Internet. Thanks to last-mile projects carried out under Measure 8.4 of the Operational Programme Innovative Economy, nearly 130,000 units will gain access to broadband Internet.”

Internet and GDP The use of Internet in business may contribute to a significant increase

of Poland’s GDP by 2020, according to the July report prepared by experts of the professional services firm Deloitte for the Polska Telefonia Cyfrowa company. In 2010, almost 9 million Poles had access to the Internet and it contributed 4.8%, or PLN68 billion, to Poland’s GDP. Under the most optimistic scenario, in 2020 Internet may contribute 13.1%, or PLN345 billion, to Poland’s GDP, with 28 million Poles having access to high-speed Internet. In its report, Deloitte identifies 82 categories of business activity which largely depend on the Internet. In 2010, they generated 31% of value added in the Polish economy. Among the businesses depending to a large extent on the Internet are those dealing with manufacturing, transport, tourist, telecom, insurance and media activity – both giant companies and small Internet stores and portals. According to Deloitte, the Internet is now at the start of the second phase of its development, a phase which began with the emergence of broadband and mobile access technology and the rapid development of devices that use it, like for example laptops, smartphones and tablets. As a result, the fast application of the innovative technology for mobile access to the Internet, one meeting the requirements of the Digital Agenda for speeds above 30Mbps, may raise our GDP by PLN106 billion in the coming eight years. Additionally, the Ministry of Administration and Digitization has drafted regulations to ensure that every newly constructed multi-family residential building in Poland is provided at the construction stage with infrastructure enabling access to digital services, including terrestrial and satellite television and first of all broadband Internet. The ministry says the requirement will not contribute to a significant increase in costs of new residential buildings. The draft regulations are now examined by the European Commission. ::

Innovation

Orange Polska

is the best partner in building broadband infrastructure in Poland

Piotr Muszyński, Vice President of TP

The economic development of each and every country is largely dependent on Internet access. Information and communication technologies are responsible for 25% of GDP growth and as much as 40% of the productivity increase in the EU. Broadband networks are becoming a fundamental part of the infrastructure, just as railways or electrical grids once were. The latest report by the Broadband Commission, an ITU (International Telecommunications Union) body, and UNESCO, shows that the greater the Internet access the greater the economic development (an increase in service density by 10 pct. points contributes to a 1.4 pct. points GDP growth). Countries and regions with welldeveloped networks are competitive on global and regional markets. Their citizens take advantage of such modern facilities as e-health and e-administration. As investment rate in the area of advanced technologies is increasing,new jobs are starting to appear. Broadband is a type of infrastructure which provides a boost to all local communities and business environments. It is fundamental to the development of innovative ICT e-services, which spur economic growth and innovation in all areas. Krzysztof Witoń, representative of the Board of Orange Polska, on broadband issues: “This is about providing equal chances and about counteracting the exclusion of some people caused by the lack

of internet access. To put it differently, it is about really fighting the phenomenon we call digital exclusion, so that people who previously lived in the blank spots could have the same opportunities for development as all the others.”

Orange takes up the gauntlet Constructing fast and ultra-fast Internet infrastructure in Poland is a costly endeavour, requiring an estimated PLN25 billion of capital expenditure. Such an expensive task calls for a consistent policy on the part of the Government – to support investments by, e.g., using EU funding and promoting selected business models. For Orange Polska, the key challenge is to fight digital exclusion and to develop the information society. This entails the extension of the present network and the creation of simple and clientfriendly technologies, which directly translates into the entire country’s rapid growth. Piotr Muszyński, Vice President of TP, thus describes Orange Polska’s participation in the digitisation of Poland: “Orange Polska is dedicated to building the network with the use of EU funds wherever the opportunity arises, and wherever it is viable.” Krzysztof Witoń adds that there are no doubts about the significance of Orange Polska’s undertaking: “I believe that from our country’s standpoint it is a truly historic project. The notion of equal opportunities relates not only to individuals. We need to take into account both

broadly-understood society and Poland’s economic growth and international competitiveness.”

An agreement with UKE We are building new infrastructure within the framework of an agreement with the Office of Electronic Communications (UKE), and also in cooperation with Local Governments. Concluded in 2009, the agreement with UKE assumed the construction or modernisation of 1.2 million broadband connections in an area covering 387 districts, nearly 2.3 thousand communes (including 68 communes situated in blank spots), and over 13.2 thousand places. The TP Vice President Piotr Muszyński gives a sense of the project’s scale: “We have over 11 thousand broadband nodes in the country, half of which are elevated ONU cabinets (fibre in the loop technology). After the investment agreement with UKE has been implemented the number of broadband nodes will increase to over 12 thousand.”

Investments with EU co-financing Under Regional Operational Programmes, managed by the Marshal’s Offices, Orange is implementing two major projects partly financed with EU funds, aimed at eliminating the Internet blank spots. Orange’s projects have been singled out for implementation following open tenders for telecommunications companies. In the Lubuskie and Pomorskie Provinces, Orange is building an optical-fibre network with a total length of over 3,000 km, to provide broadband to the residents of nearly 600 towns and villages. The total value of these projects was estimated at PLN300 million, 87 million of which is subsidies from the Regional Operational Programmes. ::

Contact: The Team of the Representative of the Board of Orange Polska for Broadband Development Krzysztof Witoń – Representative of the Board, krzysztof.witon@orange.com Hanna Kontkiewicz-Chachulska, hanna.kontkiewicz@orange.com Monika Machnio, monika.machnio@orange.com Piotr Cebula, piotr.cebula@orange.com

11 /2012 :: polish market :: 53

Innovation

Innovation wins it all! The 6th International Warsaw Invention Show IWIS 2012 was held in the main building of the Warsaw University of Technology on 1619 October 2012.

The official opening

The event was held under the honorary patronage of President of Poland Bronisław Komorowski, the substantive patronage of the Polish Agency for Enterprise Development, the Main Council of the Research Institutes, the Chief Technical Organisation of the Polish Federation of Engineering Associations, Women’s Business Angels networks, Supraregional Business Angels networks – Innovation, the Association of European Inventors (AEI) and the International Federation of Inventors’ Associations (IFIA). The strategic partners in the event were the Ministry of the Economy and the Ministry of Science and Higher Education. The official opening took place on 16 October in the small lecture hall of the Warsaw University of Technology. Among the participants were Polish exhibitors, foreign guests and representatives of major Governmental institutions. The following persons made their speeches: the Vice-Rector for Development from the Warsaw University of Technology Professor Stanisław Wincenciak, PhD, Eng., President of the Patent Office of the Republic of Poland Alicja Adamczak,

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PhD, Secretary of State in the Presidential Chancellery Olgierd Dziekoński, Director of the Department of Innovation and Industry Jerzy Majchrzak, PhD, Under-Secretary of State in the Ministry of Science and Higher Education Professor Jacek Guliński, PhD, and Deputy Chairman of the Innovation and New Technologies Commission of the Parliament of the Republic of Poland Wincenty Elsner. The opening speech was given by President of the Association of Polish Inventors and Rationalisers Michał Szota, PhD, Eng. Professor Stanisław Sołtysiński delivered his opening lecture on industrial ownership. Representatives of thirteen countries participated in the exhibition: Saudi Arabia, China, Canada, Korea, Malaysia, Moldova, Poland, Russia, Romania, Serbia, the United States, Taiwan and Ukraine. For four days the main building of the Warsaw University of Technology changed into an international forum for exchanging information and experience. The event not only featured the presentations of fascinating innovative solutions, but also many new valuable contacts were made.

This can be supported by the fact that Professor Victor Covaliov from the Moldova State University awarded the Honorary Diploma to President of the Association of Polish Inventors and Rationalisers Michał Szota, PhD, Eng. for outstanding performance in the innovation domain and promoting cooperation between inventors from the Republic of Moldova and Poland. One of the successes of the IWIS 2012 exhibition was acquainting students with the subject matter of innovation and enhancing their interest in this issue. Many of them, walking through the main hall of the Warsaw University of Technology, stopped and asked about the presented solutions. The booth of the Chief Technical Organisation, presenting the effects of young innovator’s work, enjoyed particular interest. The goal of creating innovative attitudes among young people was achieved. This year’s exhibition presented 361 inventions and innovative solutions, which were evaluated in 20 thematic categories. As many as 45 (29 Polish and 16 foreign) were awarded Gold Medals with Distinction. Special Awards, according to the decision of the International Jury, were given in categories of adolescent and adult inventors, and were received by representatives of Poland (13), South Korea (4), Taiwan (4), Moldova (4) and Saudi Arabia (2). The main award - the Grand Prix IWIS 2012, went to Chiu, Sheng-Shiung (Taiwan) for the invention ”ZERO NOUGHT No.1 – a Treatment for Diabetes.” Professor Leopold Jeziorski was awarded the WIPO gold medal for his long-standing work in the field of science, inventions and their practical application. The IWIS 2012 exhibition was an international success, and most exhibitors and people visiting the exhibition had a similar impression to that of Andreas Vedreas, President of the International Federation of Inventors’ Associations (IFIA), which brings together organisations from 82 countries. They said that IWIS 2012 was the best exhibition of inventions in 2012. This success was undoubtedly connected with the new location of the exhibition, which guaranteed large numbers of visitors, and with the series of seminars accompanying the event organised by the Patent Office of the Republic of Poland concerning intellectual property protection. The seminars enjoyed popularity so great that the small lecture hall of the Warsaw University of Technology could not hold all the interested. The preparations for the next edition of the exhibition, which will be held on 22-24 October 2013, have already started. ::

Innovation

Rapid growth of Polish IT market The value of the Polish IT market increased in 2011 to over PLN30 billion, with hardware sales growing the fastest. Poland moved up five places in the global IT Industry Competitiveness Index, scoring one of the best results among the countries in our region. Analysts project that the Polish IT industry will continue to expand in 2012, with spending on IT expected to increase by 7.8%. Bogdan Sadecki

IT experts’ views on the Polish market Jacek Namysło, MSc President of Vidcom.pl Sp. z o.o. I have operated on the broadly understood IT market, in particular in the area of technological innovation, for over 10 years. I think my experience is broad and practical enough for me to share with the readers my opinion that the biggest problem of most innovative undertakings is the inability to properly finance the activity in its initial stages, which are often the most difficult. As a nation, we really have a huge potential in understanding knowledge, creativity and inventiveness. It is no secret, for instance, that Polish IT specialists and programmers are counted among the most gifted.

Wiesław Wolny, PhD University of Economics in Katowice The Polish IT market is growing steadily. This expansion was somewhat disturbed during the crisis in the recent several years but the improvement in the market situation last year and the partial data for this year indicate that the market has a potential to grow further. Despite the optimistic projections for the situation of the IT market in Poland, its position in the world and even in the European Union is low. It seems that despite our large potential in the form of scientific research and business environment, the results achieved do not measure up to our expectations.

Bartosz Pleban, MSc Member of the Polish Information Processing Society, licensed ECDL examiner The barrier to making a full use of IT tools and developing an information society in Poland is the weakest link, the human factor. Conservatism and the distrust of modern technical solutions means the lack of courage to apply them. Another problem in Poland is that its workers have a low level of IT culture and do not have sufficient knowledge about the tools and applications they use in their daily work. One example is the Office package. It is estimated that the workers use only around 10% of its capabilities. To remedy the situation, the training process should be standardized in compliance with the computer literacy certification program ECDL (European Computer Driving Licence). It ensures high standards of competence and skills in terms of word processing, spreadsheet applications, database management and management graphics. To enhance the role of information technology, it would also be advisable to introduce an ID card doubling as the electronic signature and to reduce the circulation of paper documents, which should be replaced with electronic documents. The Polish authorities have to step up efforts aimed at standardizing databases and documents, and making public office workers more confident about these technologies.

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In 2010 the Polish IT market was making up for the losses it sustained in the crisis year of 2009. Small and medium enterprises (SME) were among the sectors recording a heightened demand for IT solutions. The value of the Polish IT market rose to PLN25.9 billion, or by 5.8% in yearon-year terms. The number of people employed in the IT industry exceeded 400,000. Wages in the sector are among the highest in Poland. In 2010 the average monthly wage of an IT specialist amounted to PLN4,500. In 2011 there were around 8,500 businesses associated with the IT market in Poland. The structure of the market did not change much from the previous year. Small businesses still account for more than 90% of IT firms in Poland. The market leader is the Asseco group. In 2011 the value of the Polish IT market reached over PLN30 billion, with year-on-year growth of around 5%. It was the result of a rise in the output of computer hardware and the growing production of software, which accounts for over 20% of the market. The development of the sector is driven by exports. New innovative products offered by Polish companies often perfectly meet the needs of foreign consumers. Until recently, Poland’s highly reputable IT specialists and programmers were the main “export product” of the Polish IT industry. At present, demand for computer hardware and modern software produced in Poland is on the increase. In 2010 computer hardware exports were worth EUR2.4 billion, which represented a rise of 90% compared to two years earlier. Poland recorded a surplus of EUR330 million in its trade in computer hardware.

Considering that in the previous years it had noted a deficit in this trade of EUR1 billion, the improvement was significant. Smaller Polish businesses operating on foreign markets play an increasingly important role. The key to their success is the production and export of software used to manage the operation of highly specialized enterprises. These dedicated solutions find buyers on foreign markets because of their high quality and lower prices compared to products offered by Western producers. In 2011 Poland moved up five places to 30th place in the global IT Industry Competitiveness Index, scoring one of the best results among the countries in our region. The league table is produced by the Economist Intelligence Unit for BSA. There are six criteria used in the index: overall business environment, IT infrastructure, human capital, R&D environment, legal environment and support for IT industry development. The Polish technology sector is changing for the better, according to the authors of the report. They gave Poland high marks for its R&D, legal and business environment.

Erste Group projects solid growth of the Polish IT industry in 2012. Virtually no changes in investment in IT have been recorded, despite fears that the crisis will spread, Erste Group analysts say. In 2012 spending on IT should grow in Poland by 7.8%. Higher efficiency, cost reductions, a rise in demand for mobile solutions and the flexibility of infrastructure, with the growing popularity of smartphones and tablets coupled with the development of mobile networks and cloud computing, will contribute to strengthening the performance of the Polish IT industry. EU funding will continue to support IT investment in the country. Poland

Innovation Top 10 of Deloitte Technology Fast 50 Company name

Country

Sector

www

Vola.ro

Romania

Internet

www.vola.ro

Growth (%) 6,219

LiveSports.r.o.

Czech Republic

Internet

www.livesport.eu

5,820

Internet Shop s.r.o.

Czech Republic

Internet

www.parfums.cz

3,995

Netmedia S.A.

Poland

Internet

www.netmedia.com.pl

3,640

Inwestycje.pl S.A.

Poland

Internet

www.inwestycje.pl

2,719

Teamnet International S.A.

Romania

Software

www.teamnet.ro

2,136

Datera S.A.

Poland

telecommunications/ www.datera.pl telecom networks

2,011

Kompan.pl Sp. z o.o.

Poland

Internet

1,584

TechnitelPolska S.J. Poland

10 Ideo Sp. z o.o.

Poland

www.kompan.pl

telecommunications/ www.technitel.pl telecom networks

1,526

Internet

1,423

www.ideo.pl

Source: www.crn.pl/news/wydarzenia/badania-rynku/2011

Rising Stars Company name

Country

Sector

www

Growth (%)

Selvita S.A.

Poland

Biotechnology

www.selvita.com

2,623

Prezi.com Kft

Hungary

Internet

www.prezi.com

1,380

Tequila Mobile S.A.

Poland

Software

www. tequilamobile.com

Focus Telecom Polska Sp. z o.o.

Poland

Telecommunications/ www. telecom networks focustelecom.pl

929

Redefine Sp. z o.o. Poland

Internet

www.redefine.pl

857

FRU.PL S.A.

Poland

Internet

www.fru.pl

796

i3D S.A.

Poland

Software

www.i3d.pl

794

Incube Sp. z o.o.

Poland

Software

www.incube. com.pl

412

Elephant Orchestra a.s.

Czech Republic

Internet

www.elephantorchestra.com

389

Bitgear Wireless Design Services d.o.o.

Serbia

Hardware and semiconductors

www.bitgear.rs

387

938

Source: www.crn.pl/news/wydarzenia/badania-rynku/2011

is the largest beneficiary of financial aid from the Cohesion Fund. In the EU’s 2007-2013 budget, a total of EUR65 billion has been set aside for Poland, including around EUR1 billion for IT projects.

raise productivity and operational and strategic excellence will be driving this growth. As the amount of data is increasing so is demand for faster wireless telecom networks.

IT companies – rapid expansion According to Erste Group, the expansion of the IT industry in the Central and Eastern Europe is a long-term trend because the new EU countries are catching up with the old members. As a result, demand for IT solutions is growing in the CEE region. Thanks to the convergence process, businesses and public institutions in the region will soon be able to raise spending on IT. Cloud computing and the need to

The 2011 Deloitte Technology Fast 50 league table of 50 most rapidly expanding IT firms in Central Europe includes an exceptionally large number of companies from Poland. The 2011 table is made up of companies from Poland, the Czech Republic, Hungary, Bulgaria, Lithuania, Romania, Serbia and Slovakia. Companies were classified according to growth in operating revenues over the previous

five years – 2006-2010. The higher the growth, the higher the company’s ranking. To be eligible to take part in the competition, companies had to have operating revenues of at least EUR50,000 each year. Twenty companies from Poland, more than from any other country, were ranked in the Technology Fast 50 main category. The number was almost two times higher than a year earlier. The Czech Republic ranked second, with nine companies in the table. The Romanian company V ola ro, which sells plane tickets online, topped the league table. Its revenue went up by 6,219% over the five years. Interestingly, two Poles have contributed to its success: Michał Wrodarczyk, one of the founders of Vola.ro and the twin service Fru.pl in Poland, and Jarosław Adamski. Six Polish companies are among the Top 10. Netmedia, which specializes in IT systems and e-commerce, is in fourth place, the highest among Polish companies. Its revenues increased by 3,640%. Inwestycje.pl is in fifth place, with a 2,719% growth in revenues. The Technology Fast 50 table is dominated by software companies (22) followed by Internet companies (21). Seven of the 10 fastest expanding firms represent the Internet sector. Polish companies were ranked high in the Big Five and Rising Stars categories. The Big Five includes companies which have operated on the market for at least five years. The leader in this category is Netmedia, ahead of Integer, with a growth in revenues of 352%, and Slovak companies: ESET (software), Tempest (computers, peripheral devices) and Soiron (telecommunications/telecom networks). Among the Rising Stars are almost exclusively Polish companies – seven among the Top 10. Ranked in this category are companies which have operated on the market for a minimum of three years but less than five years and have operating revenues of at least EUR30,000. The leader in this category is the Polish company Selvita based in Kraków, which provides solutions in the area of biotechnology and bioinformatics for research and development units. :: 11 /2012 :: polish market :: 57

Energy

Plans for development of Polish energy “Polish Market” was a media patron of the debate: “How to achieve an efficiently functioning energy market and obtain power for which there is demand, that is, innovative mechanisms of the competitive European energy market”, organized by the Social Council for Development of a Low-emissions Economy and the Efficiency Society (ETA). Maciej Proliński reports on the event, which took place in Warsaw on October 24.

Krzysztof Kilian, President of PGE

The purpose of the undertaking was to initiate public discussion on actions that could be taken to balance the electric energy system by the year 2015. Talks were centred around matters of ensuring energy supply to the largest energy consumers from the year 2015 and of creating a regional energy market with the involvement of Poland, Russia, Ukraine, and Belarus. “What is going on right now is the effect of the EU’s influence, that is, climate policy and legislative changes in Poland. At the same time, there

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are a number of programmes that are involved with energy security. We are present, as an entity, in the midst of these changes through nuclear energy or shale gas. And here I make a minor digression – these two programmes cannot be successful. One excludes the other. It is not possible to have, at the same time, left- and right-hand traffic on a street, because this results in serious consequences” stressed Krzysztof Kilian, CEO of the Polska Grupa Energetyczna(PGE energy group).

Mr. Kilian’s opinion was shared by Prof. Krzysztof Żmijewski, the secretary general of the Social Consulting Council of the National Emissions Reduction Programme. “There is no possibility for us to have both nuclear energy and shale gas. First of all, both require major investments and the Polish energy sector cannot afford to carry out both projects at the same time. The Polish energy system will not need as much energy as will be produced if both these projects were to be carried out. If we produce energy in gas-fired power plants, then there will be no need to produce energy from the atom. If we build one and the other, then they will both operate at half capacity, and a nuclear power plant that operates at half capacity means bankruptcy. It cannot operate 4 thousand hours per year, a good nuclear power plant must operate 8 thousand hours a year,” observed Prof. Żmijewski. The common energy market after the year 2014 and development of trans-border connections can be the panacea for the lack of investments in new generating technologies in Poland. Most of the planned in trans-border connections are to be on the border with Lithuania and Germany. Considering current conditions, more attention should be paid to the possibility of transferring electricity from our eastern neighbours and increasing funds for projects in this scope. In the future, the energy market of these countries is to operate within the framework of a single European energy market. The development of inter-system connections can be an excellent way to purchase electricity at lower prices for Poland. There potentially exists a possibility to import electricity into Poland from Ukraine and Belarus, which both have a surplus of produced power and offer a lower price for 1 MWh of energy by at least PLN20-40. As a result of the financial crisis, demand for electricity from industrial customers has fallen drastically, especially in Ukraine. Thus, all of these factors favour increasing energy imports from the East, according to certain experts on the energy market in Poland. Konrad Purchala, director of the Energy Market Development Office at PSE Operator, spoke about launching connections with Poland’s Eastern

{ On 1 October 2012 took place registration of the merger of three mining machinery manufacturing companies belonging to the Kopex Group: ZZM, Wamag and Ryfama.

www.kmsa.com.pl

Innovative Mining Equipment

Photos: Procesy Inwestycyjne

Energy

Panelists during the discussion

neighbours. “If we needed energy to close our energy balance, then it would be easiest for us to bring energy into our system from the East. Of course, this requires reconstruction of the connections that once existed, and this mainly includes work directed towards activating 750kV connections with Ukraine,” said Konrad Purchala. “There are different variants of the method by which such a connection could be realized, and we are talking with the Ukrainian side on the matter. It seems that a realistic prospect is that energy could flow from the Ukraine via this connection in the year 2015,” Purchala emphasized. The potential possibility for importing energy from the Ukraine, Belarus, and Russia was presented by Jan Chlebowicz from the Foresight Strategy Advisors company. He indicated, among other things, the possibility of imports from Ukraine, which exports approx. 6.5 TWh annually and intends to develop the Khmelnitsky nuclear power plant by 2000 MW. “Investments in generation are also being prepared or realized by Russia and Belarus, which, after several years, will have the effect of significantly increasing the export potential of these three countries. By investing in the inactive eastern lines, a significant exchange can be achieved in the upcoming years. If we summarize

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the possibilities, under the condition that we would increase investment in two lines – Rzeszów – Khmelnitsky and Narew – Ros, then we could see, that the balance of transfer power is at the level of import of 2770 MW of nominal power, which gives large possibilities of exchange,” said Chlebowicz. Jacek Brandt, director of International Cooperation at the Polish Power Exchange (TGE), talked about the changes in the trade of electricity in bygone years. He spoke of “market coupling” – a crucial concept for the energy market. Market Coupling is defined by combining the available power on all national markets of EU member countries into an integrated system and energy purchase through several strong regional exchanges, on which uniform, transparent, and reliable transaction prices are set on the basis of supply and demand. “Market Coupling is already known and has been implemented for over a dozen years in Europe. At the end of 2010, this mechanism combined the Polish Power Exchange and the Scandinavian power exchange, Nordpool Spot. The members of these exchanges are already making use of the transfer capabilities off the Polish-Swedish connection. The third legislative package accepted by the European Commission is to ensure, for all citizens of the

European Union, numerous advantages resulting from the implementation of a fully competitive energy market in Europe. The possibility for selection of an energy supplier by consumers, fair energy prices, cleaner energy, and security of supply are the key goals that constitute the essence of the third legislative package. Within the framework of this mechanism, national power exchanges - apart from their basic market services, such as: establishment of energy prices, anonymity of transactions, and financial security – also render the additional service of effective allocation of trans-national transfer capabilities. The target market model for trans-national allocations of transfer capabilities within the framework of the Intraday Market is implicit continuous allocation. In reference to the Forward Market, market instruments in the form of long-term transfer, physical, or financial rights that give participants in the energy market the capability of managing long-term commercial risk related to the costs of grid limitations, are significant. It is planned to create the appropriate codes for allocations of transfer capabilities and for management of limitations, containing a harmonized set of rules for trans-national connections,” said Jacek Brandt. ::

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Shale gas

– the problem of extractability “Until we come to know how much of shale gas is extractable, and this can be done only through exploratory activity within individual licences and on the basis of production tests and by examining fracturing efficiency, our calculations will be just projections,” Prof. Jerzy Nawrocki, Director of the Polish Geological Institute National Research Institute (PIG PIB), tells “Polish Market’s” Jerzy Bojanowicz.

What is the scientific basis for the “gas rush” in Poland? Are geologists already able to estimate the size of the new reserves? The Polish Geological Institute (PIG) has drilled horizontals from a few dozen sites which may contain unconventional hydrocarbon deposits, defined their extent, thickness and the content of inorganic matter. However, this knowledge is very limited. Now, we have the exploratory phase - with over 30 new wells drilled to define parameters important for the ability to generate shale gas. And it has been determined that the shales do contain gas. But it is something we have known since the early 1960s when Prof. Stanisław Depowski of PIG published a report on the presence of gas in Polish shale deposits in the “Kwartalnik Geologiczny” journal. The problem is to find places in shale gas formations where one can get high productivity and, which is even more

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important, to develop technologies making it possible to extract as much gas as possible. So far, shale gas recovery rate has been put at the lowest level, one adopted by the United States Geological Survey (USGS) - around 4% of geological reserves. This level is highly unsatisfactory compared to the 15%25% achieved for the deposits now exploited in the United States. Apart from defining the limits of the deposits and determining their potential, any deposit estimates should take into account the extractability of shale gas. It is still a big unknown in Poland, because the unsatisfactory results of the first hydraulic fracturing operations do not prove anything. In fact, we have to do with a sort of “bidding” for recoverable reserves because one essential parameter is still unknown. Blind bidding! It is not blind because we know the maximum gas recovery rates from a single well and a whole deposit area in the United States, for instance. Until we get more satisfactory results than those for the first fracturing operations, we have to adopt for our calculations the lowest rates achieved in the United States or Canada. This is why the report published by PIG in March is quite cautious. We estimated the reserves at 346-768 billion cubic metres, which is the most probable bracket, by adopting a moderate recovery rate from a single well. A report published by the USGS is even more cautious (38.1 billion cubic metres). Meanwhile, the estimate of over 1.9 trillion cubic metres has been

made by adopting the highest recovery rate achieved in the United States. However, one should remember that these are only projections. Companies involved in exploratory work have to drill much more wells and do deposit tests for us to be able to determine the gas recovery rate from Polish shale formations. Once we know the findings of their work, we will be able to revise our projections and reach more specific results. The PIG report indicates that shale gas deposits may be present in other parts of Poland, outside the Baltic, Podlasie and Lublin areas where exploratory activity is now conducted, that is in the region of Wielkopolska, in the northern and eastern part of Lower Silesia, in Upper Silesia, and in coal deposits – mainly in Upper Silesia and the Lublin basin. The report points to the likelihood of petroleum deposits. Is the knowledge we now have on this subject sufficient enough to take business decisions? I think it is. Let us remember that some licences have been issued for areas on the border between the provinces of Lower Silesia and Wielkopolska, where Carboniferous formations definitely also contain unconventional gas deposits. I think they are at least as promising as the Early-Paleozoic formations, located between the cities of Gdańsk in Pomerania and Tomaszów Lubelski in the Lublin region, on which most companies have focused. In the case of the Carboniferous rock formations, which are a bit younger, the problem is their tectonic deformations. It is much more difficult to effectively plan horizontal drilling in folded rocks. However, good seismic surveys may solve this problem. There are two types of unconventional gas is these rocks: shale gas and tight gas. I think that after the geological formations of this area have been defined in detail it will turn out that it is at least as promising as the shale belt running from Pomerania to the Lublin region.

Shale gas The third area identified by PIG, though not fully examined yet, is the Baltic Sea. The Danish are among those who think it has a big potential. Unfortunately, off-shore drilling is more expensive than on-shore drilling. But, of course, it will be economics - the ratio of the gas price to the cost incurred – that will determine activity in this area. Is it possible to determine the profitability of a deposit? In the case of unconventional deposits, the problem is much more complex than in the case of conventional ones because the question of supply, demand and price/cost is coupled here with great uncertainty associated with gas production. The reason is that shale gas is distributed within rock formations very unevenly, in what is called sweet spots. Consequently, in many cases, only few wells are highly productive while many others have poor parameters. It is a lottery to some extent. Of course, the risk may be reduced by applying geophysical methods, which is cheaper than drilling wells. In the case of conventional gas, one first defines the rock formation using geophysical methods, then a well is drilled and one can see whether or not the gas is there. The second problem is that the features of rock formations differ depending on location. The fracturing method chosen to extract gas depends on the properties of the rock. The mechanical properties of the whole rock formation and lithology may have a radical impact on the rate of gas recovery. In one location, for instance, most of the gas may be contained in mesopores or macropores, in which case it is relatively easy to extract using a hydraulic fracturing method adapted to local conditions. But in another location most of the gas may be contained in nanopores. And in this case, the conventional fracturing method is not very effective. I am afraid that many of the scientists who have dealt with conventional deposits still do not understand what unconventional deposits are all about. The Americans were also slow in accepting that. Geologists were very sceptical about the first attempts to extract shale gas on an industrial scale. Success was only possible thanks to the commitment of private business and a strong determination

on the part of a few people from the sector. You said that geophysical surveys are carried out apart from drilling wells. Have any other methods been developed thanks to scientific and technological progress? Drilling operations combined with high-definition seismic are still the main methods used to determine the amount of reserves. The seismic defines the structure of the rock and the thickness of the gas-bearing rock stratum. The data is checked by drilling wells. Reports published by PIG on mineral resources exported and imported by Poland show that last year Poland recorded a deficit of over PLN50 billion. Is this a lasting trend? Poland is rich only in some resources – mainly coal, copper and silver. We also have large deposits of zinc, lead and salts. As regards natural gas, we now satisfy around one third of our consumption needs from our indigenous conventional resources. Our indigenous production of petroleum is much, much smaller. We have to import many raw materials. And I do not expect the situation to change radically, except for natural gas. When it comes to hydrocarbons, we see quite intensive exploitation of conventional deposits, coupled with a drop in their reserves in recent years. This is why we should also intensify conventional gas exploration activity. But our radio and television equipment, and household appliances are increasingly energy efficient while our cars consume less and less fuel. Is it likely then that demand for natural gas and oil will go down? Energy consumption in the “old” EU countries is much higher than in Poland. If we want to reach their development level - and energy is an important factor in this respect - we have to be prepared that demand for energy will grow. At the same time, its use will be increasingly efficient. Let us “stay underground,” but closer to the surface. Was it possible to avoid disasters while building the second line of the metro in Warsaw? As every scientist, I can say that I am unable to answer this question

without analysing the whole investment project and the process of its implementation in detail. I am somewhat surprised that PIG - which performs the role of the national geological service, has studied Warsaw’s geology for 90 years and has the most extensive knowledge about what there is under our feet - has not been asked to conduct the geological supervision of the project, in contrast to the Finnish geological service, which is supervising the construction of the Helsinki-Espoo metro stretch. I regret that this happened on such a large-scale project where mistakes may affect thousands, or perhaps hundreds of thousands, of residents. This project involves work in geological formations. Therefore, apart from having knowledge about them, it would also be helpful to contact our staff who worked on designing the first metro line and people who know what there is underground in densely built-up areas. Geophysical methods are not reliable in a large part of Warsaw because it is so densely developed. The experience of our staff, passed down from generation to generation, is invaluable. PIG also performs the role of the national hydrogeological service, which constantly monitors ground water levels, a factor which contributed considerably to the disasters on the metro construction site. We have been asked to give our opinion on the disaster which took place during the construction of the Powiśle metro station. The metro tunnel was drilled through the inundation terrace of the Vistula river, in the places where old water systems, ground waters and the present Vistula river-bed communicate with each other. Miocene clays are better for building a metro tunnel than, say, sand with water, as is the case near the city of Łódź. In this respect, Warsaw has better conditions than many other cities on the Polish Plain. However, its geology is varied. In one place along the tunnel you have clays, in another one quicksand or other postglacial sediments. And the whole formation is strongly deformed. It seems the builders lack detailed knowledge about it. We have to understand the processes taking place underground to be able to predict what may happen and what should be done to prevent it. :: 11 /2012 :: polish market :: 63

Global market

The world of Polish copper KGHM Polska Miedź is a state-of-the-art enterprise which has been a leader of the Polish economy for over 50 years. It is one of the largest companies listed on the Warsaw Stock Exchange and a global player on the market for nonferrous metals - in fact one of the leading companies on the global copper and silver markets. Its international expansion is of strategic significance, not only to the company, but also to the Polish economy, as its boosting its position on the global market. Polska Miedź is a company focusing on sustainability, responsibility, and development.

The company was established in 1961 as a state run firm under the name “Kombinat Górniczo-Hutniczy M iedzi” (Copper Mining and Metalworks Industrial Complex). In 1991 it was transformed into a jointstock company. Since 1997 the company’s stocks have been listed on the Warsaw Stock Exchange. KGHM exploits its own deposit of copper ore. It has its own integrated production structure, which is composed of three mines, three copper works and auxiliary branches supporting the basic operations. The resource base for KGHM is Europe’s largest and one of world’s largest copper deposits. Its area is nearly 468 sq. km. The deposit is situated at a depth of 600 to 1380 metres. The copper ore from the mining facility is transported to processing plants, where it is enriched to produce copper concentrate. The ore enrichment plants produce about 2 million tonnes of concentrate containing 24% copper. Then, it is supplied to

The most important and valuable project of KGHM International is Sierra Gorda. It belongs to a joint venture, 55% of the shares of which are held by KGHM International and 45% by the Japanese company Sumitomo.

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metal works, where it is smelted and fire-refined to obtain anode copper. This, in turn, is electro-refined to produce copper cathodes. The cathodes are used to manufacture copper wire rod and round billets. The yearly output of KGHM’s mines is about 30 million tonnes of copper ore, containing 1.64% copper, and significant amounts of silver. Rock salt is extracted from above the copper resources. KGHM plants employ over 18,500 workers, and its daughter companies, making up the KGHM Group, employ about 10,500 people. The latest methods of excavation and processing copper ore and the modern organisation and management systems used by KGHM allow the safe production of top-quality copper, silver and other resources, without which the development of modern technologies would not be possible. KGHM Polska Miedź S.A. creates future by producing the traditional resources for state-of-the-art purposes. The copper produced by KGHM in the form of cathodes is registered on the London Metal Exchange and Shanghai Metal Exchange. It’s refined silver holds the certificates of London, Dubai, and New York exchanges.

KGHM Polska Miedź S.A. as a global player on the market for nonferrous metals All KGHM Polska Miedź S.A.’s projects connected with acquisitions in the mining sector comply with the essential profitability criteria, while having an acceptable risk level. The company prefers projects in

politically- and economically-stable countries with foreign-investor and mining-friendly legislation. In March 2012 the KGHM Polska Miedź S.A. Capital Group purchased 100% of Quadra FNX stocks from the stockholders of the Quadra FNX Mining Ltd. Company. The name of the new company will be KGHM International. The transaction value was CAD2.9 billion, making it one of the largest acquisitions in the history of the Polish economy. Concluding this agreement is in line with the KGHM Polska Miedź Group’s strategy, which aims at increasing the resource base and copper production. The acquisition will allow the KGHM Polska Miedź Capital Group to achieve an increase in copper production by more than 100 thousand tonnes a year, starting from 2012. In 2018 the increase will exceed 180 thousand tonnes annually, which means a 25% increase. The most important and valuable project of KGHM International is Sierra Gorda. It belongs to a joint venture, 55% of the shares of which are held by KGHM International and 45% by the Japanese company Sumitomo. Sierra Gorda is a world-class deposit containing more than 1.2 billion tonnes of ore and more than 8million tonnes of copper, 3.5 million ounces of gold, and over four 450,000 tonnes of molybdenum. The KGHM Group holds a diversified asset portfolio in countries with low investment risk and a portfolio of projects providing for the development of the current production base. It comprises 9 mines in Poland, Canada, the USA, and Chile, and 5 projects in the investment and pre-investment stage: Sierra Gorda in Chile, Głogów Głęboki Przemysłowy in Poland, Afton Ajax and Victoria in Canada, and Malmbjerg in Greenland. It also includes exploratory projects in Waisswasser (Germany), Wartowice, Szklary, Gaworzyce-Radwanice (Poland) and Kirkwood, Falconbridge, Footwall, Foy (Canada).

KGHM is a socially-responsible company One of the pillars of corporate social responsibility (CSR) in KGHM

Global market

Polska Miedź S.A. is charity activity implemented by the Polska Miedź Foundation, established in 2003. The initiative for establishing the Foundation stemmed from KGHM’s prosocial policy. Its creation constituted a continuation of the charity activities of the company, which from the emergence of the copper industry in Lower Silesia has supported numerous regional and national projects using the funds obtained. The most important of the KGHM Foundation’s areas of focus is healthcare. Donations make it possible to buy state-of-the-art equipment and medical appliances for hospitals and rehabilitation centres. In the field of healthcare, the Foundation has also supported individuals, helping in their treatment and rehabilitation, eliminating architectural barriers, and buying medicines and orthopaedic and rehabilitation equipment. The foundation’s statutory tasks include actions for the benefit of children and young people, which is why

funds are directed to add equipment to educational workshops, organise scientific conferences and summer camps and school trips. The foundation also allocates funds for projects popularising sports and physical culture and the development of the sports and leisure facilities. Building positive relations between KGHM and its employees and the local community is also possible thanks to the Foundation, which annually supports projects connected with the mining and metal works tradition. Over its 10-year-long activity, funds have gone to institutions promoting Lower Silesia’s regional culture and organising conferences and scientific congresses – also those organised by national minorities. The Foundation’s donations support cultural and artistic events and the organisation of stage performances and exhibitions, and they also help purchase the necessary equipment for cultural centres. The funds spent contribute to the improvement in the

state of many historical buildings, often saving them from falling into complete disrepair. Financial support also makes it possible to buy modern emergency equipment and appliances for the local volunteer fire departments, water emergency units and the police. The Foundation also responds to society’s needs resulting from natural disasters. Over the 10 years of its activity, the Foundation has given a total of PLN105 million worth of donations to institutions and individuals. The excavation of copper ore and its processing are inseparably linked with environmental impact. KGHM Polska Miedź does not want to - and cannot - evade responsibility for the natural environment. Complying with strict environmental standards arising from the law is possible thanks to the consistent modernisation and construction of new installations for environmental protection. :: 11 /2012 :: polish market :: 65

Green economy

Local energy market

in a run-up to a “soft revolution” The 4th Earth Summit, a three-day U.N. Conference on Sustainable Development that was first held twenty years ago, ended on June 22, 2012 in Rio de Janeiro. The talks were focused on the idea of building a “green economy” in order to achieve sustainable development. The Rio +20 conference was yet another historic opportunity to lay down a new roadmap for a sustainable future: a future that will offer more clean energy sources, a future that will be more secure in terms of living conditions thanks to combining social requirements with those of the local economy. The leading role in the realization of sustainable development priorities is to be played by local self-governments, local authorities and regional entrepreneurs. Cezary Tomasz Szyjko

The author is PhD, lecturer at the J. Kochanowski University in Kielce

The EU’s new financial perspective (2014-2020) provides for the developed regions (with the GDP higher than 75% of the EU’s average GDP) to spend up to 20% of the resources under the Cohesion Fund on activities supporting the transformation, i.e. building a low carbon economy, promoting sustainable development, energy efficiency and renewable energy sources. In Poland, all provinces except for Mazovia have the status of developing areas. Mazovia has been qualified as a region at a socalled transition stage. Political decisions made in the next few years will be crucial for the implementation of energy efficiency projects which involve reducing energy intensity and economic modernization. By comparison, in the previous financial framework (2007-2013) only 1.2% of the Cohesion Fund’s budget was allocated for activities related to energy efficiency, cogeneration and energy management.

Towards the “green side of the power” Polish local self-government units are going through a period of unprecedented change. Polish regions have no choice but to turn to the „green side of the power”, which means making a transition to a low carbon economy. Such a reform will no doubt be a real challenge. Unfortunately, there is very

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little time to carry out restructuring, because Poland’s energy balance for 2016 is about 5,000 MW short. What is most important, however, is that the transformation proceeds in an orderly and effective manner. The target for Poland is to adopt the provisions of the EU climate-energy package. One way to achieve this is to implement the proposals by the Social Council of the National Emission Reduction Program set out at the International Conference NEUF 2012 last June. Developed by a panel of experts in energy and economy, the White Paper presents a realistic program of emissions reduction in Poland. It will also be a starting point to create the National Program for Development of Low-Carbon Economy. Economic development is the driving force of every society, with energy being its essential factor. Energy management at the communal level is not an isolated task. Thus, a comprehensive approach is needed in order to ensure the energy security for the local businesses and communities, to protect the natural environment locally, to stimulate economic development and guard the locals against excessive energy costs. The energy supply planning within communes is primarily a locally managed issue, but it also affects other administrative levels: regions - the regional

energy supply systems, the country the country’s energy security and its energy balance, the continent and the world - the countries’ shared problems with regard to the emissions reduction and the climate change. The rapid growth of demand for fuel is the principal factor influencing the market development. Energy is indispensable for all economic processes and for the consumption, which makes it a „public good”. It is also a strategic challenge for each region to streamline its production costs and supply chain. Improving the efficiency of the energy networks should result in a relative decrease in fuel prices, while maintaining the safety and security of supply. The experience of the European countries (i.a. Italy, Germany, Norway), which are radically reforming their gas sectors, shows that the most effective way of improving the efficiency is to implement leading-edge technologies at a local level.

Friendly law The energy law is favorable to local self-governments. It states that while making their business development plans, energy companies must take into account the local land-use planning as well as the communal policies. They are also bound to inform the local authorities on the activities planned within the area of the commune. On the other hand, the minister of economy as the supreme authority of the state administration competent in energy-related issues, is supposed to collaborate with local self-governments with regard to energy supply systems. This rule has been reaffirmed in the strategic document „Polish Energy Policy until 2025”, adopted by the Ministry of Economy, which gives local self-governments greater powers with respect to energy and a stronger position in relation to energy companies. But the energy law imposes on local self-government responsibilities too. Communes are tasked with planning and organizing the supply of heat, electricity and gas on its territory.

Green economy Furthermore, they are supposed to plan and ensure the lighting of public places and streets. In carrying out its energy policies, local authorities must act in accordance with the government energy guidelines, local landuse planning and urban management. According to the “Polish Energy Policy until 2025”, the communal authorities are responsible for ensuring local energy security, using renewables and recycled wastes. Under the project “Energy planning at the local level with the use of renewable energy sources”, three counties: Lidzbark, Tarnogora and Dzialdowo have since 2002 implemented the ecostrategy. The latter is supported by the Consultative Council of Polish Counties (ZPP) and the Information and Consultation Committee for the Communal EcoEnergy (OPI-K). Communes are also offered assistance by the Association for the Cooperation on Regional Energy (SWER).

Social dialogue More and more Polish communes join the EU pilot programs aimed at building a climate for energy investments that improve the quality of life. These programs raise social awareness of environmental issues, thus making people satisfied that their hometown develops in a sustainable way. In a joint action for the rational use of energy, 25 Polish communes and one Lithuanian created the Association of Communes: Polish Network “Energie Cités”, a branch of the European Network “Energie Cités” based in Besançon, France. The member communes are involved in the promoting a rational and efficient use of energy, as well as renewable energy sources. In their activities, they focus on sharing information and experiences, lobbying and supporting local energy efficiency policies. Particularly important is the communication with inhabitants. Municipalities (communes) create conditions that encourage people to save energy and give an example to follow by making efficiency savings in public facilities. For example, a project called MODEL is co-funded by the Intelligent Energy Europe program and by ADEME - the French Environment and Energy Management Agency. MODEL offers urban professionals assistance in a wide range of energy-related

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issues, i.a. modernization of buildings, renovation of heating systems, enhancement of the energy efficiency, sustainable technologies, including cogeneration. The experience and knowledge gained by the pilot cities will be valuable to all other European municipalities that are willing to attract energy-efficient investments, in the residential construction sector. But investing in green energy solutions, such as wind farms, solar panels or hydro power plants has a positive impact not only on the environment. It also benefits the economic development of the region, and thus the life quality of its inhabitants. “Ecological investments at a communal level help reduce spending on energy, and use the saved money for other purposes, such as investments, schools, cultural facilities, events and the integration of the local community. It all contributes to the sustainable development of the region and people living there,” says Andrzej Halasiewicz, Ph.D., expert in this field, assistant professor at the Institute of Sociology, Nicolaus Copernicus University in Torun.

Conclusions for Poland The environmental and energy-related activities will gain in significance, because it is communal authorities that should be most keen to guarantee their inhabitants adequate living conditions. These efforts are welcomed by the Polish National Energy Conservation Agency that holds an annual competition for the most energy-efficient commune in Poland. Rewarding pro-environmental attitudes is yet another additional factor motivating local-self governments. Still, Polish communes need more educational programs on the leading-edge energy solutions and their role in reducing CO2 emissions. In many less-developed Polish communes, which do not modernize infrastructure and supply systems, energy is wasted. When clerks lack relevant skills and a willingness to act, when residents and councilors do not show initiative, as it is often the case in Poland, there is no choice but to turn to private companies. Local selfgovernments can use their services to implement investment projects aimed at reducing energy consumption. After the amortization period, all elements of the investment become the

commune’s property and work to its advantage. In case the commune is for some reasons unable to carry out investments on its own, the way is open to have a recourse to this type of partnership, especially that such contracts are gaining in popularity. The priority for Polish regions should be innovative investments in smart power infrastructure. The interest in distributed energy resources at the local level is fully justified. The potential harbored by the renewable energy sources has been best described by J. Pabis: “If we accumulated all the fuels available worldwide, i.e. coal, wood, gas, oil, and burn it with 100% efficiency, we would obtain the energy output equivalent to the amount of sunlight the Earth gets for four days”. If we want local self-government to be able to develop activities in the field of energy and the environment, the process of decentralization must continue, covering not only tasks and responsibilities, but most of all the financial and legal framework. Nongovernmental organization still fight for local self-governments to be allowed greater funds and freedom. The government says it will soon introduce new bills. For example, in July 2012, a draft law on waste management was adopted, introducing a number of changes in line with the European Waste Framework Directive. Time will tell how the parliament and the government will tackle theses issues which are so important in the context of sustainable development. However, it is so much the legislation, but rather some flexible elements which can largely be controlled that will be determinant for the sustainability of Polish regions. It is therefore possible to design and pursue the regional development in such a way so as to make it more sustainable. The key to combining social requirements with those of the local economy can be the RES-based concept of EVENs (ecological energy nodes), developed by Wojciech J. Kuczkowski. EVENs do perfectly fit into the idea of sustainable development and can greatly contribute to the restructuring of the Polish power generation sector. This might, in turn, lay the regional groundwork for the “soft revolution” in the Polish energy sector, as put it professor Krzysztof Zmijewski. ::

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Commercial Real Estate

Wiśniowski door, gates and fences – Clients are our inspiration It has been already 23 years since WIŚNIOWSKI company produced its first door. Today the company is the largest Polish manufacturer of doors, gates and fences which close our premises when we build home, housing estate, company or factory. These products provide a feeling of safety and constitute the end of your activities - crown your investment.

norms, and their workmanship must be perfect in every detail.” Since its foundation, WIŚNIOWSKI puts a very strong emphasis on the development of particular products for a considerably diversified group of recipients. The company’s portfolio is prepared both for clients oriented at economical solutions and for those wishing to invest in more advanced technologies which substantially increase the comfort of use. “Creating such a broad range of products would not be possible without a thorough analysis of market tendencies”, notes Andrzej Wiśniowski. “Clients are our inspiration, and our goal is to provide them with products which they can enjoy for many years. Each element of the development of technological processes and the products themselves is, on one hand, a result of consumer needs, and, on the other, the necessity to anticipate them.

Andrzej Wiśniowski, the founder and proprietor of the Wiśniowski company

When Wiśniowski launched its activity in 1989, Poland, for political reasons, was still a land without access to up-to-date technologies. Modern technological thinking had only emerged and the boom was yet to happen. “This was a perfect moment and we had to take the best of it,” says Andrzej Wiśniowski, “the appearance of radio-activated gate door meant that the comfort associated with the West European countries, or the more distant United States, became available”. During a relatively short period of time, doors and fences made WIŚNIOWSKI® company have reached a very high level of quality, becoming serious competition for the largest producers from the westin Polish Border. “Quality control of all production processes in such a large enterprise is a necessity. We also must remember that the doors produced by us, especially the automatic ones, are the largest appliances in our houses, and therefore must meet the strictest

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The construction department alone consists of 40 engineers who design, analyse and constantly improve the company’s products. The trade portfolio includes hundreds of products in the field of garage doors, industrial doors, fencing systems and steel, aluminium and fire-rated joinery. The entire product range is purchased by clients both in Poland and in the whole of Europe. The company is constantly developing. The dynamicity of its development is visible, for instance, in the recent rebranding process, which results from caring for the brand and its position on the market, and from noticing the necessity to adjust our image to the clients’ expectations. “We wanted to create a more modern, innovative and dynamic image, adequate to the high quality of products which we make. We wished also to expand on the national and international market. We would like to continue our expansion - not only with the products, but also with a more attractive logo, which will be remembered,” states the company’s proprietor.

At this year’s Stuttgart 2012 construction fair, the products from WIŚNIOWSKI which were presented, inspired great interest due to the technologies applied and the modern design. “Our intention was to present the efforts of the previous year’s work brought to fruition by our construction engineers and designers. The booth included our flagship products, but in a completely different form. Among them were new designs of fences incorporating perforated sheet, which give an extraordinary visual effect. The technological novelties which can also be mentioned are anticipatory photocells and lowered thresholds in automatic sectional doors. We also demonstrated a sectional door with a regulated doors frame and a V-profiled door, already very popular in industrial construction. A very important segment of our activity is industrial products. These include both the industrial doors and gates as well as fencing systems. I would like to pay special attention here to our sliding gates which are among the world top quality products. Our one cantilever gate may close the driveway of 18 metres clear width, and gate unit allows to close as wide as 24 metres driveway. Many years of experience and state-ofthe-art technologies applied by Wiśniowski company contribute to the top quality, durability and safety of the company products. Due to sustainable development, the company proves the effectiveness of the Integrated Management System according to ISO 9001 and OHSAS 18001. ::

To Crown Your Investment

Commercial Real Estate

Commercial real estate investment market in Poland

Łukasz Lorencki, Surveyor, Capital Markets Group, Cushman & Wakefield

Persistent concerns over the eurozone have weighed heavily on Poland’s commercial property investment market. At the top of financial institutions’ agenda are protecting capital and maintaining a high level of liquidity, practices that guarantee financial flexibility during challenging conditions. Although investing in real estate is evidently more profitable than investing in bonds of even the strongest eurozone economies, the sector’s relatively low liquidity is an impediment to investment. The transaction volume in the first half of 2012 reached around EUR 946m, a level comparable with the level for the same period last year. Of this, EUR 475m was Unibail-Rodamco’s acquisition of a 77% stake in office and retail complex Złote Tarasy in Warsaw. The remainder, EUR 471m, was produced by 12 deals, down from 19 deals over the whole of last year, reflecting a drop in investor confidence over the past 12 months. The retail sector accounted for 57% of all deals, with offices taking 31% and warehouses 12%. The investment growth will depend on an improvement in the eurozone’s health. Continuing economic uncertainty will discourage long-term investment. Many European banks, having made risky investments in the sovereign bonds of troubled eurozone countries, are threatened with bankruptcy, and are unlikely to expand lending. This constraint on finance will lead to further risk aversion in investment property market.

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Office market The transaction volume in the first half of 2012 stood at around EUR 294.5m, a decline of more than 44% from the total for the same period last year. Few large transactions took place – the average deal size over the period was more than half of last year’s figure, and there was no single mega-deal such as the sale last year of Europolis’s portfolio. Foreign investors remained cautious about investing in the office regions other than Warsaw because of the low liquidity of these markets. This created opportunities for local investors, such as PZU Asset Management, which acquired phase II of Arkońska Business Park in Gdańsk for EUR 25m. Widening price differences between the centre of Warsaw and its suburbs and other urban areas were reflected in yield levels. They were stable in the city centre at 6.25% for prime assets, but rose for comparable facilities in the last halfyear by around 25 basis points to 7% in Warsaw’s Mokotów district and by around 25-50 basis points to around 7.5% in Krakow and Wrocław. The largest deal in the first half of 2012 was Unibail-Rodamco’s acquisition of a 77% share of the Lumen and Skylight offices in Warsaw, part of the Złote Tarasy complex. Two other office schemes also exchanged hands: the Renaissance Building, purchased for around EUR 27m by investment fund GLL and the Harmony Office Center II, bought

Commercial Real Estate Investment deals on industrial market 12%

10%

200

8% 150

Prime Yield

Transaction volume (million EUR)

250

6% 100 4%

Retail market

0% 2007

2008

2009

2010

Transaction volume

2011

2012 M1–M6

Prime Yield

Investment deals on retail market 12%

1600 10% 1400 1200

1000

Prime Yield

Transaction volume (million EUR)

1800

6% 800 600

400 2% 200 0

0% 2007

2008

Single transactions

2009

2010

2011

Portfolio transactions

2012 M1–M6

Prime Yield

Investment deals on office market 12%

1200

10%

1000 8% 800 6% 600 4%

Prime Yield

Transaction volume (million EUR)

1400

400 2%

200 0

0% 2007

2008

2009

2010

2011

2012 M1–M6

Warsaw CBD

Warsaw NCL

Regional Cities

Warsaw CBD

Warsaw NCL

Regional Cities

Total Investment Deals 3,5 3,0

Transaction volume (bn EUR)

by Spanish firm Azora for EUR 54m. Evidence of market activity included Allianz’s signing of a preliminary agreement to buy Platinium Business Park and the approval of the Office of Competition and Consumer Protection (UOKiK) of Heitman’s acquisition of the Marynarska Business Park. These prospective deals bode well for the future of the investment market.

2,5 2,0 1,5 1,0

In the first half of 2012 an estimated EUR 540m was transacted across five deals in the retail investment market. Unibail-Rodamco’s acquisition of a 77% stake in Złote Tarasy accounted for most of the volume. Other deals included UK fund Rockspring’s acquisition of Alfa in Olsztyn for EUR 84m and US fund Blackstone’s purchase of Galeria Tęcza in Kalisz for EUR 37m. In tough market conditions, deal completions are often delayed. This was the case in the above-mentioned deals, for which negotiations started as early as 2011. The second half of the year is expected to see the completion of transactions commenced in the first quarter of 2012. The number of modern retail schemes in Poland is growing steadily. Strong competition and high market saturation combined to slow the rate of tenant turnovers and reduce footfall. As a result of these factors, and of reduced price expectations that were not met, investor appetite for retail projects dwindled. Yields for the few established retail properties in large urban areas were at the same level as last year at around 6%. Demand for these assets remains strong and investors immediately seize any opportunities that arise. In case of secondary properties, whose supply rose significantly over the past few months, yields softened in the first half of 2012 by nearly 50 basis points to 7.25% or higher depending on the attractiveness of the scheme.

Warehouse market A deal volume in the industrial market in the first half of 2012 reflected the sector’s relative stability. Total sales stood at EUR 111.8m against EUR 129m in the same period last year and EUR 109m in the opening two quarters of 2010. Investment activity in the second half of 2012 is expected to remain at its current level. Of the three transactions closed in 2012, the largest was US fund Hines Global REIT’s acquisition of Prologis’s four logistics parks for $130m (EUR 97.45m). Hines’ principal business activity has been property development but with this transaction it made its investment market debut in Poland. The deal is also notable because it reflected the decision of Prologis, which owns one of the largest industrial portfolios in Poland, to sell part of its local asset to a non-related company for the first time. The two remaining transactions were the Polish fund BPH FIZ Sektor Nieruchomości 2’s acquisition of phase II of Ideal Idea Park in Warsaw for EUR 9.36m and the acquisition of a BTS production facility in Legnica by a private investor for EUR 5m.

0,5 0 2007

Office

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Retail

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2009

2010

Industrial

2011

Other

2012 M1–M6 Volume

Warehouse prime yields remained at the same level as that of the previous six-month period, 7.75%. For production facilities the level was much higher – at around 9.5% for new schemes let to an established tenant on long lease. ::

Budujemy najwyższą jakość Warto budować. I warto robić to dobrze. Bo dobrze wykonana praca zawsze procentuje. Dzięki tej filozofii od lat znajdujemy się w czołówce największych koncernów budowlanych w Polsce. W ciągu blisko dwudziestoletniej działalności zrealizowaliśmy ponad 400 nowoczesnych inwestycji, uchonorowanych licznymi nagrodami. Potwierdzeniem najwyższej jakości naszych usług jest niesłabnące zaufanie Klientów, dzięki któremu możemy sięgać chmur.

www.warbud.pl

Warsaw investments

Warsaw – the leading Eastern-European city in terms of development! Total Investment Volumes (Excludes development sites)

Source: Cushman & Wakefield, Real Capital Analytics

Metro

Q3 2011 - Q2 2012 (US$)

GROWTH (compared to previous 12 months)

New York Metro

$34 684 213 620

London Metro

$29 313 332 246

17.5% 2.4%

Tokyo

$23 921 608 806

-7.6% 12.3%

Paris

$19 434 399 700

Los Angeles Metro

$16 965 881 654

-0.4%

Hong Kong

$16 811 979 810

-4.6%

San Francisco Metro

$15 385 083 694

15.0%

Washington DC Metro

$13 794 705 826

-4.7%

Chicago

$10 572 543 045

13.2%

Toronto

$8 031 490 550

26.4%

Shanghai

$7 897 026 601

42.8% 19.0%

Dallas

$7 885 963 922

Boston

$7 522 593 126

32.1%

Houston

$7 298 762 891

39.0%

Singapore

$7 298 373 016

-48.8%

South Florida (Miami)

$6 516 306 270

-1.3%

Sydney

$6 410 910 527

0.2%

Stockholm

$6 355 892 918

-1.9%

Seoul

$5 996 745 546

-26.9%

Seattle

$5 935 710 980

41.6%

Atlanta

$5 912 171 681

19.4%

Berlin

$5 782 419 407

34.0%

Moscow

$5 174 307 361

-14.9%

Phoenix

$5 035 919 942

12.9%

Denver

$4 596 494 788

44.3%

San Diego

$4 494 492 859

8.3%

Rhine-Ruhr

$4 470 273 069

-12.6%

Taipei

$4 323 586 548

86.0%

Frankfurt/Rhine-Main

$3 975 268 207

-20.0%

Munich

$3 847 639 580

69.4%

Amsterdam/Randstad

$3 646 524 629

-18.0%

Melbourne

$3 395 416 258

-38.7%

Brisbane

$3 258 666 162

37.2%

Guangzhou

$3 199 131 764

184.3%

Beijing

$3 077 463 375

-51.3%

Hamburg

$2 946 634 521

-34.6%

Osaka

$2 894 319 724

-4.7%

Philadelphia Metro

$2 852 038 122

15.7%

Baltimore

$2 847 416 303

110.8%

Austin

$2 841 471 491

45.7%

Oslo

$2 796 591 646

44.6%

Charlotte

$2 723 398 102

130.5%

Vancouver

$2 276 361 934

4.0%

Calgary

$2 227 557 803

25.4%

Raleigh/Durham

$2 166 275 962

59.8%

Nashville

$2 071 822 052

120.0%

Minneapolis

$2 064 840 102

7.5%

Orlando

$2 008 767 617

-4.3%

Warsaw

$1 957 339 403

3.4%

Stuttgart

$1 910 581 699

163.3%

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A report by Cushman & Wakefield, entitled “Winning in Growth Cities”, presented at the EXPO REAL International Trade Fair, Munich, shows that New York has been recognised as the largest investment market worldwide for the second consecutive time – in the 12 months up to 2012 Q2 its investment volume in commercial estates increased by 18.9%, reaching USD 34.7 billion.

The report shows that low interest rates and the continuing risk have prompted investors to put their money in commercial venues located in major global locations, with New York being the leader in such investments over the last 12 months. As regards investment trends in the respective market segments, the majority of capital was invested in office space (43%), then in commercial facilities (20.8%), residential units (18.1%), warehouse space (10.3%) and hotels (7.2%). Next to indicating the largest cities in respect of investments in commercial facilities, and showing variations in prices and demand, the “Winning in Growth Cities” report also listed the crucial factors influencing the success of a city, such as a skilled workforce, innovation, and quality of life.

numerous investment opportunities, both in respect of buying high-quality assets in emerging- and secondtier cities, and increasing the value of top-asset potential.” The interest of investors in emerging markets is a positive sign, especially that the efforts of the developing capital of Poland have also been recognised in the ranking. Warsaw won the first place among Mid-Eastern European countries in terms of the overall volume of investment transactions and ranked 49th globally. It can also boast the high 12th position in the trans-border investment ranking. David Hutchings noted: “Warsaw can still exhibit high potential for growth as a key business centre in the region. Thanks to its relative resistance to the effects of the financial crisis, it is perceived as a low-risk market.” ::

Cushman & Wakefield has also tested investment activity in different regions. Greg Vorwaller, Director for Capital Markets Global in Cushman & Wakefield, commented: “This year seems virtually identical to the previous one. The unrelenting economic and geo-political uncertainties urged investors to value the safety of investments in top real-estates located on the most attractive markets. Along with the return of a moderate trust in and revitalisation of global markets, investors will tread carefully when it comes to taking risks against

Warsaw won the first place among Mid-Eastern European countries in terms of the overall volume of investment transactions and ranked 49th globally.

(The Warsaw Metro Ltd.) Metro Warszawskie Sp. z o.o., 5 Wilczy Dół St., 02-798 Warszawa, www.metro.waw.pl The Warsaw Metro: - 1 line with 21 stations, - over 500 thousand passengers daily and over 140 million passengers annually, - over a billion passengers since 1995, - 240 cars making up 40 six-car trains, - over 90% favourable opinions in yearly surveys of passenger satisfaction in recent years - the safest means of public transport, always on schedule. The central section of the second metro line

The central section of the second metro line: 6.3 km long; from the Rondo Daszyńskiego Station to Dworzec Wileński Station Stations: Daszyńskiego Roundabout, Rondo ONZ, Świętokrzyska, Nowy Świat, Powiśle, Stadion, Dworzec Wileński

Metro’s new rolling stock

Connection with line 1 The two-level Świętokrzyska Station The central part of the metro line will allow passengers to conveniently switch from rail to other forms of transport. Dworzec Wileński Station and Stadion Station will be connected to the rails.

On 2 February 2011 an agreement was signed to supply 35 six-car trains

INFRASTRUCTURE AND ENVIRONMENT THE NATIONALl COHESION STRATEGY

THE EUROPEAN UNION

THE COHESION FUND

The “The Second Warsaw Metro line Project – the preparatory work, design, and construction of the central section, along with the purchase of rolling stock”, are co-financed by the European Union with funds from the Cohesion Fund within the framework of the Infrastructure and Environmental Operational Programme.

Warsaw investments

Warsaw Chopin Airport – a good place to take off It has already been more than 78 years since Warsaw’s Chopin Airport started providing domestic and international flights. Right from the beginning, it has been the leading airport in Poland, with the largest number of passengers and the most flights operated. It is currently used by 10 million people a year. In order to provide satisfactory comfort and safety of travel, the facility continues to develop. Indeed, the coming years will see the airport complete more than PLN1.2 billion worth of investment projects. Agata Kraczek Available services and cherished values Warsaw’s Chopin Airport provides its passengers with safe and comfortable travel. It sees to it that customers can choose from the widest possible range of airlines and routes. The company has a deep commitment to making passengers feel relaxed while waiting for their flight. Indeed, within the airport there is a wide choice of shops, restaurants and bars. Those whose priority is travel comfort can always unwind in one of the four available Executive Lounges: the Bolero, the Ballada, the Preludium and the Polonez. What is more, the airport has a VIP Premium lounge. Aware of the needs of children, the company has also provided Placyki Fryderyki, designated areas where

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kids can play with the Airport’s mascot, a female elephant by the name of Frederica. In addition to this, an ecumenical chapel has been put in place for those who want to enjoy a moment of quiet reflection. Non-aviation activities are centred around commercial facilities, including shops, restaurants, bars, and service venues located within the terminal and piers.

Innovations and promotions The airport’s notable promotional offer includes an innovative tariff system, including a system of airport charge discounts and a programme of marketing cooperation with aircraft carriers, which has already been implemented in the previous years. In terms of innovation, the Airport implements, under the patronage of the

EU, the Airports Council International, EUROCONTROL and IATA, a policy of cooperation between its users which takes advantage of the Advanced Surface Movement and Guidance System (A – SMGCS), an advanced system providing ground routing, guidance and surveillance of aircrafts and vehicles. The device has been developed for the currently-used systems, procedures and practices to address the increasing air traffic, as well as the multifunctional nature of the Warsaw Chopin Airport and the need to ensure the best quality of services. It has been four years since the Airport first provided Common Use Self Service (CUSS) facilities in the departure lounge of the terminal. These represent an alternative to the traditional check-ins, allowing the passenger, after his/her identification (including the identification of flight number), to choose the seat number and print out the boarding pass. The passenger can be identified using a credit card, a Miles&More card, a passport or an ATB card. With the printout of the boarding pass one can directly go to the security check-point. Another notable check-in facility used at Warsaw Chopin Airport is the mobile boarding pass, which was introduced in 2008 by some of the airlines. This allows the passengers to check in by receiving the boarding pass on a mobile device via SMS/MMS, The boarding pass is equipped with a bar code containing all the information which is provided on the traditional boarding card. The fact that such cuttingedge technology has been so quickly implemented in the Airport is proof of its advanced terminal infrastructure.

Investing in the future 2011 saw the launch of the Chopin Airport City project aimed at developing the area directly surrounding Terminal A. This will include the development of the Airport’s business and leisure space, both for travellers and for Warsaw residents. While being a commonplace project implemented in other parts of the world, in Poland it is the first project of this kind. Presented at the real property shows in Cannes and Munich, the Chopin Airport City project and its architectural design were extremely popular with potential business partners. ::

The numbers that describe us: Buses –1300 low-floor buses including 950 high-capacity vehicles Buses used in traffic – 1090 Daytime routes – 147 Every day, our buses travel approximately 250 thousand kilometres. · T he Municipal Bus Company (Miejskie Zakłady Autobusowe) is the largest municipal transport operator in Poland and one of the biggest in Europe. · F or 92 years we have provided our Passengers with transportation in buses of top global brands, including Chausson, Chevrolet, Mercedes, MAN and Solaris

Hybrid bus – one of the four in the fleet of Company

· T he top quality of services has always been our priority – we were among those who pioneered the use of air-conditioned buses (the latest batch of our buses is equipped with “Mediterranean” air-conditioning), next stop voice announcement, a passenger information system available on and outside of the bus, and an information system for people with visual impairment. · O ur rolling stock is among the newest in Poland – in the last five years we have procured 775 brand-new buses. · W e operate four hybrid combustion buses and have run traffic tests of alternatively fuelled buses, including electric ones.

The 1500th Low floor bus

Warsaw investments

Railways – more than a passion Artur Radwan, President of the Management Board of Koleje Mazowieckie - KM Sp. z o.o. talks to Alicja Krajewska.

travel comfort through sensitizing passengers to the needs of young mothers or pregnant women.

I n January 2013, it will be eight years since the establishment of Koleje Mazowieckie, the first railway carrier in Poland owned by a local self-government. Has the company gone a long way ever since? Yes, even a very long way. In 2005, the company was owned jointly by PKP Przewozy Regionalne and Mazowieck ie Province, while currently its sole owner is the local selfgovernment. Today it is a common practice that individual provinces take over regional railway carriers, but at that time it was an experiment on a national scale. Many did not believe in its success, and it turned out that this skepticism was unfounded.

Many economists expect that the economic crisis will deepen in 2013. “Bloomberg Businessweek Polska” has recently placed you among twenty top managers who are doing best in recession. Do such pessimistic forecasts make you fear? You cannot downplay such warnings, but the crisis should not be an excuse for idleness either. From the very beginning, Koleje Mazowieckie has pursued the process of modernization of rolling stock. Thanks to the Mazowieckie Province self-government as well as the EU funds we can provide passengers with more and more new and upgraded trainsets. Travel comfort is steadily improving, although of course there is still much to be done. Our priorities - modern solutions for travelers’ convenience remain unchanged regardless of the economic situation.

So today, almost eight years since it was established, Koleje Mazowieckie is... ... Poland’s second railway carrier in terms of the number of passengers and the undisputed leader in respect of modern rolling stock. High ratings make us feel proud, but they also mobilize us for further action. Last year, for example, we successfully carried out an issue of Eurobonds in the international market in London. Another noteworthy achievement is building a team of people with extensive experience and in-depth expertise, for whom railway is not only a profession but also a passion. So the team is the key to success, isn’t it? It is certainly one of its essential prerequisites. The ability to work as part of a team plays a huge role in such a specific and complex industry as railways. Difficult and stressful situations are commonplace, which makes good cooperation necessary. Railroaders consider their work as public service, closely linked to the best traditions of the railway solidarity.

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How does Koleje Mazowieckie see its role as a regional carrier? I reckon it is not limited to - forgive me the simplification - providing trainsets? Of course it is not. For many years, we have been undertaking a number of activities in the field of corporate social responsibility. Let me mention here our cooperation with the Warsaw Railway College. Following a proper training programme, graduates of this school are employed by Koleje Mazowieckie as train operators. This initiative was recognized in the ranking of the most interesting CSR projects published by the “Wprost” weekly last October. In addition, we are committed to improving

Are modern carriers, such as Koleje Mazowieckie, able to change a rather poor image of railways which still prevails among the Poles? It is worth looking into the reasons why, despite the changes that have occurred over the past two decades, the voices of discontent are still heard. Many of the critical opinions are due to the lack of knowledge about the current situation and developments in the railway sector. Stereotypes dominate that unfortunately, or maybe fortunately, are not reflected in reality. You have been heading the company for almost three years. Have you ever regretted having accepted this task? Managing a railway company is a great challenge, but it is something very inspiring and rewarding at the same time. Of course, it does involve some risks. This said, I like the job and I appreciate working with a team of professionals. That is why I have never regretted this decision. ::

Infrastructure

Polish roads before and after EURO 2012 - Infrastructure Poland has not seized the momentum created by the UEFA Euro 2012 European Football Championship. The government failed to fulfill the promise to improve the road and rail infrastructure. Another opportunity to make such progress will not appear soon. There are still very few motorways and good roads in Poland. The current state of the transportation infrastructure in Poland is not only a barrier to development, but also a real threat to the country’s territorial cohesion. The plan to construct 1,700 kilometres of new roads has been only one-third completed. Bogdan Sadecki Until not long ago, Polish roads were considered the most dangerous in the European Union. A few years passed, and you can see almost everywhere roads being built and repaired. And, obviously, you ask yourself what has changed or what has improved. Drivers are still plagued with holes, cracks and ruts, especially when moving around the country. The fact is that almost 50% of Polish roads require repairing or upgrading (including expressways and motorways). The worst situation is in Malopolskie and Kujawsko-Pomorskie provinces. The overall poor condition of roads is typical of the so-called Poland “B” - the eastern part of the country. The cost of making repairs to the most damaged roads has been estimated at approx. PLN 3 billion. And removing all the existing faults would require an outlay of almost PLN 8 billion, estimates the General Directorate for National Roads and Motorways (GDDKiA). The problem, as usual, is money. Repairing 1 kilometre of road involves spending around PLN 1 million, something hardly anyone is aware of. Therefore, it is necessary to start co-financing renovations from the National Road Fund. This, in turn, requires changes in the existing legislation and the consent of the Minister of Finance.

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In Poland, roads are built with cheap materials, and, as we all know from experience, they leave much to be desired. The national road system in Poland, including motorways and expressways, is overseen by the General Directorate for National Roads and Motorways. It performs the task of managing the national roads and implementing the state budget for national roads. Other responsibilities of the General Directorate for National Roads and Motorways include: participating in the implementation of the road transportation policy, data collection and releasing information on the public road network, supervising the construction of road infrastructure for the needs of the defence sector. National roads in Poland have a total length of 18,368 km, which accounts for approx. 5% of all public roads in Poland (the data is constantly changing, source: siskom.waw.pl). In the past 5 years, Poland has made investments worth almost PLN 100 billion in connection with EURO 2012. About 5% of this amount was allocated for the construction of stadiums, and as much as 70% went for road infrastructure (which covers, aside from motorways, other national and local roads and access roads between airports and train stations, urban ring roads etc.). By way of comparison, Ukraine spent about PLN

50 billion on the organization of the championship. Since EURO 2012, Poland has been connected by motorwayswith Lisbon. Polish drivers have now (data as of spring 2012) 1,609 km of roads more than four years ago. So far, 412 km of motorways, 481 km of expressways and 169 km of road rings have been built. Additionally, 547 km of national roads have been upgraded. 1,358.2 km of roads are still under construction, including: 528.8 km of motorways (28 sections), 738.7 km of expressways (48 sections), 70.1 km of ring roads and 20.6 km of repairs and upgrades. In the period from autumn 2007 to spring 2012, contracts were signed for the construction of 2,096 km of national roads, including 783 km of motorways and 1,313 km of expressways, ring roads and major upgrades. Contracts for the construction of 615 km of motorways were signed in the traditional system and for 168 km under public-private partnership. According to the budget bill for the next year, the government intends to allocate nearly PLN 3 billion for the implementation of the national road construction programme, which provides for more than 263 km of expressways and motorways to be built and for almost 22 km of roads to be modernized. The government estimates that the total cost of the national road construction programme in the years 2011-2015 will exceed PLN 70.5 billion (including the funding from the National Road Fund). “It is expected that by the end of 2013 the programme will result in commissioning approx. 810 km of motorways, approx. 690 km of expressways, as well as approx. 200 km of ring roads,” says the website of the Ministry of Finance. Aside from the money for the construction and repair of national roads,

Infrastructure roads that need immediate repair is in Wielkopolskie (24.4% of the entire national road network), Lubelskie (22.5%), Małopolskie (22.4%) and Warmińsko-Mazurskie (21.2%). The rapid deterioration of roads is mainly caused by a very large increase in heavy truck and trailer traffic. In 2005-2010, truck traffic in Poland increased by 43%, and the number of trucks passing through Poland is growing from year to year. Polish roads are completely unprepared for the movement of vehicles with the load capacity of 115 kN per axle. Although the proportion of roads that meet this standard increased from 5.1% of the total national road network to over 31% (approx. 5.9 thousand km) in the period from Poland’s accession to the European Union till the end of 2010, the mismatch in load capacity of the remaining two thirds of the national road network continues to generate additional costs.

next year’s budget bill assumes PLN 0.5 billion in funding for the upgrade of local roads. The government intends to build, overhaul and upgrade approx. 5 thousand kilometers of local roads in 2013. Infrastructure projects carried out under the national road construction programme in 2012-2015 are financed according to the following scheme: 30% from the national budget and 70% from local governments’ own resources. Needless to say that good road infrastructure is a major asset for the regions willing to attract investors. According to a report by Ernst & Young presented at the European Economic Congress in Katowice last year, more than 3.5 thousand kilometres of national roads, i.e. 18.9% of the whole road network, needed immediate repair, while 22% were in very bad condition. We should spend about PLN 4 billion each year on road maintenance, but we actually spend much less. In the years 2008-2011, the average annual expenditure on the maintenance of national roads was only PLN 2.3 billion. Last year,

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public spending on road repairs hit a record low of PLN 1.5 billion, covering barely 40% of the needs. In 2009, it was twice as much, though still insufficient. There is no denying that the problem of rising costs will persist and even get worse with the opening of new sections of motorways and expressways that, now under construction, will soon require day-today maintenance service. The increase in the number of cars has a bearing on the state of Polish roads. According to the traffic count data from 2010, the average daily traffic on national roads was 9,888 cars and was 22% higher compared to the previous survey in 2005. On international roads, daily car traffic averaged 16.6 thousand, and on other ones 7 thousand. Compared to past figures, the highest growth (over 30%) was recorded in Śląskie, Pomorskie and Opolskie, while the lowest (about 15%) in Zachodniopomorskie, Warmińsko-Mazurskie and Lubuskie. According to a report based on the data from GDDKiA, the highest percentage of the national

The main reason for this is of course the constant shortage of funds for road repairs and upgrades. Another negative factor is an unstable and changing GDDKiA’s budget for road maintenance. With the amount of allocations changing every year, a long-term maintenance planning is compromised. As a result, some of the most urgent works drag on and build up costs. Some analysts say that GDDKiA’s activity is not very effective, namely because of protracted roadworks and the lack of a comprehensive system of quality assessment. Decision-makers should be absolutely sure that public money is spent effectively, and this can be achieved by improving the management of the entire process of road maintenance in Poland. Poland is pursuing infrastructural projects that involve construction, modernization and maintenance of industrial facilities and transportation infrastructure. After the completion of these large projects, the time will come for municipal and county roads. Along with the road infrastructure, we cannot neglect another huge challenge - the railway modernization. The EU funds are guaranteed until 2020, which means that there are only 8 years left. ::

Law

Who will benefit from the Common European Sales Law? Natalia Kabacińska

The author is a lawyer at Chmaj & Partners.

In October 2011 the European Commission issued a proposal for a Regulation on a Common European Sales Law (CESL) that is now being discussed in the European Parliament. The overall objective of the proposal is to improve the establishment and functioning of the internal market facilitating the expansion of cross-border trade for business and cross-border purchases for consumers. This objective, according to the Commission, can be achieved by making available a selfstanding uniform set of contract law rules including provisions to protect consumers. As a result, the need for traders to find out about the national laws of other Member States would be significantly limited. The differences in national contract laws are belived to be detrimental to business, as they create additional transaction costs. Such costs may have various dimensions: costs of information about the law (legal advice) in various national markets, costs of negotiating applicable law, costs of enforcement, etc. They are usually resulting from the different rules on formation, performance and enforcement of contracts, as well as differing levels of consumer protection (under the current law, as set

out in the Rome I Regulation, a trader which directs its activities to an EU member state must comply with the mandatory consumer protection laws of that state). The legal uncertainty may discourage producers from expanding into markets of other Member States and consequently hamper the realization of four freedoms in the EU. The deterrent effect of cross-border transaction costs is particularly strong for small and medium-sized enterprises for which the costs of entering multiple foreign markets are often particularly high in relation to their turnover. That was probably the reason why the Commission decided that the Common European Sales Law is to be applicable to B2C (businessto-consumer) contracts or B2B (business-to-business) contracts where at least one party is a small or medium enterprise (SME). The scope of application of the CESL is further limited to cross-boarder contracts only, although Member States will have an option to make it applicable to purely domestic agreements. The Commission explains that as a direct consequence of introducing the CESL, traders could save on the additional contract law related

Barriers to cross-border trade Currently involved in cross-border trade Contract law related obstacles

Practical obstacles

Tax regulations Formal requirements

Interested in being involved in cross-border trade

10 11

Contract law related obstacles A great barrier A medium barrier

A small barrier

An unimportant barrier

Q2. What impact do the following potential obstacles have on your decision to sell / purchase across border to / from businesses from other EU countries? Base: all companies, % EU27

transaction costs and could operate in a less complex legal environment on the basis of a single set of rules across the EU. However, from a law-and-economics perspective, the European Commission’s proposal has been criticized for being likely to yield even more costs than benefits. First, there would be a need to adapt to the CESL – a new legal regime that has not been so far subject to any interpretation. Yet, all legal changes generate some initial additional costs that are tolerated in the interest of the perceived benefits. What is more important, a closer examination of CESL shows that the proposed Regulation will not effectively cover all aspects of the sales contract. That requires to apply national legal regimes (that would govern the contract if the parties would not have opted into CESL) to fill the unregulated “gaps”. Consequently, the aim to introduce a “uniform set of contract law” may be undermined. Moreover, the CESL itself contains extended information duties that are likely to add to the trader’s costs. In particular, sellers would be obliged to serve a Standard Information Notice to consumers and obtain an additional written permission to apply CESL to each consumer contract. Finally, the opponents of the harmonization underline that legal and regulatory diversity will not disappear as a consequence of introducing the CESL. The law in action, especially the legal procedure as well as the legal culture, will still differ. Therefore, any activity within the foreign markets will require some legal research. Adding to that the typical costs that arise from the need to adapt to local market conditions, it may turn out that the reduction of general transaction costs as an outcome of harmonization will be close to negligible. :: 11 /2012 :: polish market :: 85

Finance

15 years of Provident in Poland Interview with the President of the Management Board, David Parkinson.

Th is year, Provident Polska celebrates its 15th anniversary; it’s a good time to sum up from a longer-term perspective the company’s achievements on the Polish market. In your opinion, what were the greatest achievements in the recent years and what challenges does the company have to face in the future? Yes, my first memory of the Polish business was on a visit here in 2001

Facts about Provident :: Provident is a leader in the segment of quick cash loans issued at the Customer’s home. :: The Company builds the business on the basis of close, long-term relations with Customers, Employees and Representatives, its business partners and communities in which it operates. :: Provident is one of the largest British employers in Poland. :: 71% of adult Poles know the Provident brand. :: 9 out of 10 Customers in Poland awarded the highest score for the service provided by Provident. :: Provident has over 1,000 active volunteers among the Provident Polska Employees who have organized 300 volunteering events. :: During the 15 years of Provident’s activity in Poland the company has spent over PLN 5 million for social programs.

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when I visited several branches in the North of the Country, as well as the HO here in Warsaw. I was very impressed with the business then and I remain impressed today. Undoubtedly the main achievements are continued success of the business and it’s ability to adapt to the changing external environment and changing needs of our customers. This is down to the capability of our workforce, many of whom have been with us for 10 years and more. We have incredibly high brand awareness and exceptional customer service ratings. I think the key challenge for many financial services businesses are to remain relevant to existing and potential customers at a time of increased expectations and new possibilities. Providing outstanding service and a first class customer experience is essential and we at Provident were thrilled to win the Customer Friendly Award earlier this year. A continued focus on customer centricity is a key part of our strategy. Provident is currently one of the largest lenders in Poland and over 3.5 million Poles have already used its services. How have this market

changed from the moment the company issued its first loan over 15 years ago? When in 1997 we started our operation in Poland the concept of small cash loans with home service was practically unknown. We proved that we are a stable and responsible company owing to which our customers always know they can rely on us. We have built our position and good relations with our customers broadly based on trust – we have always been a friendly lender who offers simple and transparent agreements, in line with the applicable law. Loan market in Poland is becoming increasingly more mature and customers more demanding and aware of their rights. Many new loan providers have appeared and the market became more fragmented and diversified, with increasing interest in it. I personally respect competition however only on the condition that like us they apply fair rules and operate in line with the applicable law. How do you perceive the general macroeconomic situation from the perspective of the development of the company throughout the next few months? I agree with the opinion of many economists that this time Poland will be affected more than in 2008/9. However, it seems that we will see slower economic growth rather than a recession. We know we have a business model that is resilient to macroeconomic turbulence and we are able to respond rapidly to any changes in the external environment. For these reasons we continue to plan for growth. What are the most important plans for the next dozen or so months? We’ve recently developed our strategy for growth, at the heart of this is customer centricity and the further development of the Provident brand. We’re planning to introduce new roles in the organisation to enhance our capability in these areas. It’s very exciting! ::

Finance based on confidence Professionalism built over 15 years of our presence on the Polish market 3.5 million Customers have trusted us* 90% of Customers are satisfied with our services**

Recently we received many prestigious distinctions and awards:

*The number of Customers who used Providentâ&#x20AC;&#x2122;s offer between 1997 and 2012. **Standardised periodic customer satisfaction survey on the group of 44,000 respondents in 2010.

Finance

Importance of financial education Prof. Małgorzata Zaleska

The author is a National Bank of Poland Board Member, a full Professor in the Department of Banking at the Warsaw School of Economics, and Vice-President of the Finance Committee at the Polish Academy of Sciences.

As a result of the contemporary global crisis, financial knowledge in Polish society has improved. However, it is still insufficient in some cases. This is due to low expenditures on science and education in Poland as well as the public’s limited interest in that area of knowledge. Meanwhile, the effects of the unfortunate investing or borrowing of money and being charged usurious interest rates are known to be potentially deplorable. Therefore, it is certainly necessary to subsidize Polish science and education and also aim to increase the public’s financial literacy. Polish science and education have been underfunded for years. Expenditures on research and development as a percentage of GDP are almost three times lower in Poland than the EU average. The share of the private sector in financing expenditures on research and development in Poland is very low as well - twice as low as in the Czech Republic and almost three times lower than in Finland. What is more, the share of the private sector in financing research work has been decreasing steadily in Poland. On the basis of the above, one may draw the hasty conclusion that the issue of science and education is not appreciated by anyone. Reading an interview with one of this year’s Nobel Prize in Medicine winners, one may have an impression that this problem concerns not only Poland. Prof. John Gurdon says that there are many people who do not want to pursue science as their career: “They don’t want a career in science.” Possibly, this stems from the challenges that scientists are faced with in today’s world - challenges with regard to overcoming formal obstacles and scientific achievements not being appreciated. Fortunately, different kinds of non-governmental and public institutions, including the National Bank of Poland, are trying to support the development of financial education and science. One of the recent initiatives has been to disseminate information on how to use financial services

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and not fall victim to one’s own ignorance. It seems that everyone should know that: :: there is no risk-free investment; moreover, the higher the potential gain, the greater the risk, :: contracts and other financial documents should be read prior to signing, :: documents with the content one cannot understand should not be signed, :: not all entities offering financial services are subject to institutional supervision; moreover, not all of the funds that they hold are guaranteed by deposit guarantee schemes, compensation schemes or insurance guarantee schemes. It seems that the above-mentioned minimum rules may protect many people against mistakes in managing their personal finances. This is important, since learning from one’s mistakes is usually very costly. The public’s financial ignorance is also often used by dishonest financial market players to make money from it. It must be noted that employees in financial institutions have, by definition, a better and more extensive knowledge than their clients. It also needs to be emphasized that the lesseducated client is less demanding on financial institutions than a person with a good basis of financial knowledge. The advantage of financial institutions is very often shown by them in the provisions of agreements (for example loan agreements), whose texts are difficult to understand for a client. The obscure language of financial agreements certainly does not help in understanding them and improving the public’s knowledge. Until recently, a big problem was presented by the lack of sources of information on the mechanisms and the functioning of financial markets that would introduce this issue in a way that would be accessible and understandable to a wider section of society. Fortunately, this situation is now changing. Increasingly often, authors

of publications are attempting to present the issues in multi-threaded terms. They apply to them not only the short-term and one-sided approach. For example, they do not perceive foreign-exchange reserves only as a potential source for financing a country’s current financial needs, which is an incorrect approach, but point to their significance in ensuring the country’s financial security. We should also remember that publications alone are not everything. An opportunity to get to know the workings of financial institutions personally is very important, including “touching” the legendary Warsaw stock market floor, seeing the inside of an ATM or holding a bar of gold worth approximately PLN2 million and weighing 12.5 kilograms. These are only some of the ways to disseminate financial knowledge in an accessible and pleasant way, for instance during open days organized by the Warsaw Stock Exchange and the National Bank of Poland. By observing recent events and behaviour, one may see an increase in the financial literacy among the public in Poland. Experiences from the contemporary global crisis certainly also contributed to this increase. At the same time, the public’s financial knowledge needs to be improved constantly, not only due to its insufficient level in some cases but also due to the constantly-changing environment. It should also be remembered that not everyone necessarily cares that we should be educated, since an uneducated society is easier to manipulate in financial markets. Therefore, investing in knowledge certainly pays off, and it is a secure and risk-free investment. ::

„Gazeta Bankowa” ma zaszczyt organizować kolejną w tym roku debatę z udziałem ekspertów. Tym razem tematem dyskusji będzie:

„Modernizacja systemów informatycznych w branży ubezpieczeniowej po 20-stu latach ich funkcjonowania na rynku” Debatę poprowadzi Maciej Goniszewski, redaktor naczelny „Gazety Bankowej”.

Spotkanie odbędzie się 21 listopada 2012 r. Po debacie zapraszamy na uroczystość rozdania nagród w organizowanym przez „Gazetę Bankową” konkursie:

Przyjazna Firma Ubezpieczeniowa 2012

Partner merytoryczny: PRZYJAZNA FIRMA

2012 UBEZPIECZENIOWA

MIESIĘCZNIKA

Instytucje zainteresowane udziałem w debacie prosimy o kontakt telefoniczny: 22 370 23 43.

Finance

Technology in banking - Will computers, not people, soon be managing our finances? Mariusz Grendowicz

It was not that long ago, when a bank for which I worked at the time, then the largest foreign bank operating in India, embarked on a project of replacing paper ledgers with computers. I recall the tremendous fear and concern with which the employees were welcoming the new element, which was to accompany them forthwith. Gone are the days when customers of banks in the UK with unease inserted their first ATM cards, fearing that “the hole in the wall” will clean their accounts dry without dispensing anything in return. Banks and their customers have, since those days, embraced technology and noone would ever question the sense of implementing these fundamental, from today’s perspective, technological innovations. Even these initial, infrastructural, applications of technology in banking, however, brought about momentous changes in banks’ business models. The replacement of a paper-based ledger with a computer server enabled providing services

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to banks’ customers away from their home branch and laid foundations for branch networks, which did not make as much sense in an era of paper-based ledgers, where each customer’s signature facsimile was available at their branch only and any service to be rendered at any other branch required an advance arrangement. Bank branches in those days were nothing more than mini-banks, each with their own customer base. ATMs, apart from pushing even further the concept of “away-fromhome services”, represented a significant change for a bank branch’s organisation. Bank employee’s primary function shifted from teller service, mostly cashing people’s cheques, to sales oriented activities. Ever since these early days technology has permeated the world of banking with a continuous stream of innovative tools. Risk management scoring systems, anti-money-laundering systems and, most recently, fraud prevention tools based on telephone interviews carried out with

potential customers (there is talk of such systems, based on earlier antiterrorist applications, being offered), are the examples of tools aimed at reducing banks’ risk profiles, while at the same time dramatically reducing the headcount by assigning these tedious tasks to machines, and increasing the efficiency of processes. These tools are being continuously improved in a war waged by banks on fraudsters and money launderers, whose methods grow more and more sophisticated. The vast amount of data in banks’ possession lays ground to very sophisticated CRM systems, which enable banks to tailor-make services being offered and improve the efficiency of sales processes. Examples of their potential applications in retail banking include the targeting of customers who regularly purchase petrol with their credit cards for car loans and car insurance, or offering wealth management products to people who reasonably regularly purchase luxury goods. One’s imagination can run wild developing similar combinations. Needless to say, making such targeted offers improves efficiency of the sales processes and builds customer loyalty by reducing the risk of banks’ communications being assigned spam status. It is a pity that banks are so poor at utilising this data. My bank regularly sends me consumer loan offers, despite the fact that I have never used this product and my expenditures’ profile suggests that I will never use it in the future. This is by far the biggest area of future development for banks, one which will undoubtedly raise many issues of privacy and data processing. Perhaps we are not heading towards the world as portrayed in “Minority Report”, but we can expect that, privacy concerns permitting, banks will become a constituent part of our lives, delivering offers of services, as we shall need them, and at the point at which we shall need them. Most of the technological applications described earlier have been in

Finance banks’ use for quite some time, frequently unbeknown to the banks’ customers. The extension of banking technology on a large scale to the customer himself is a relatively new phenomenon and related to the advent of the internet. The internet enabled us to communicate with the bank first from our home, and then, thanks to the use of “thin client” philosophy and cloud computing, from anywhere in the world. The early internet banking applications provided customers with the most basic, but also most important, functionalities – those of payments and account enquiry – and were intended, even in the “thin client” configuration, as an add-on to the more traditional sales channels – branches and call centres. The main impact on banks was the dramatic reduction of processing costs in comparison with payments processed in a bank branch. This was enabled by the implementation of the so called “straight through processing” (or STP), where the customers’ input is fed through to the core systems of the bank without any additional human intervention. The combination of internet

banking and STP is probably the single most important cost-reducing technological development. The most recent development, the so called “Internet Bank 2.0”, is revolutionising the world of banking again. The early functionalities are giving way to multi-product single window platforms, through which a whole range of financial products - insurance, investment products, or mortgages – can be purchased. In addition, the function which, in the opinion of the most traditional bankers, may never be served satisfactorily by the internet – that of advice – is being enabled through the use of virtual branch functionality. The virtual branch is a Skype-like functionality, though more secure, more stable and capable of online negotiation of documents and their signing with the use of qualified electronic signature. Bearing in mind that banking is one of the very few sectors of the economy, whose products are 100% virtual, it is my strong belief that with the most recent technological advances already in place, there can be no convincing

argument for any other distribution of banking products than virtual. Bankers who insist that physical branches will continue to serve as the principal channel for the distribution of high value added products are living in denial. The question is when, rather than if, the branches will cease to act as an effective distribution channel. They may continue to perform a strictly marketing function, similar to that of billboards of advertisements, but nothing can beat the virtual office staffed by the top 20% of a given bank’s customer advisers working a two shift day. The end game scenario will, therefore, be the closing of most of banks’ branches and significant downsizing of the banks’ staff. The current debt crisis may become a catalyst for these impending changes. ::

The author is the former CEO or board member of several banks in Poland and abroad, chairman of the Banking Forum Programme Council and a member of a number of supervisory boards. ADVERTISEMENT

11 /2012 :: polish market :: 91

Photos: Rafał Nowak

Polish Market Round Table

Alternative investment This year’s edition of the Your Money Trade Fair hosted a conference entitled Alternative Investment, moderated by representative of “Polish Market” Magazine and BCC expert, Jan Mazurek.

Each of the invited guests presented different forms of investment, other than, for instance, the so-called aggressive investment in shares. The panellists did not discourage aggressive investment, but outlined different, perhaps competitive, possibilities, which they assured to be safer. The debate came down to one statement: for the investment to be safe, the portfolio must be diversified. As was put by Jan Mazurek: “Alternative investment is the response to fluctuations on capital markets.” The con ference on investment in precious metals was opened with a presentation on “Ethical Gold” by Jacek Jakóbczak, Skarbiec Koronny SA, International Coin House AG. In Poland, this subject is nearly unknown. The financial market established regulations preventing money laundering a long time ago. Unfortunately, the gold market lacks such mechanisms. The “ethical gold”

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keyword refers only to clean, not dirty, gold. The international community strives to avoid gold of unknown origin being introduced into the financial system. Therefore, it is vital to stay away from gold coming from countries tormented by political or military conflicts. Secondly, gold stained with human rights infringements and gold produced in disregard of the environment should not be traded in. Several of these criteria, forming the foundation for gold produced in a “responsible” manner (as defined in the new standards), may prove difficult to be satisfied collectively. Nevertheless, members of the London Stock Exchange who fail to meet the criteria will be dismissed from the Exchange. Since these are new regulations, introduced no later than a month ago, first audits to assess compliance with requirements are to be carried out in the following year. My company, in cooperation with Rand Refinery (one of the largest gold producers worldwide), proposes the introduction of the so-called “ethical” gold standard. Please remember that gold “produced responsibly” may include recovered (re-melted) gold

additions. In the case of “ethical” gold, however, Rand and our company do not accept recovered gold. The definition of “ethical gold” employed by our company narrows down the London definition. Each purchaser, whether a business owner or an investor, will have the opportunity to confirm its origin and track all the way our gold product came through (on the basis of an enclosed certificate and code). The time is always right for investing in gold, regardless of whether gold goes up in value. Gold should form part of a wide portfolio, also including other elements, such as shares. Adopting a strategy involving portfolio diversification may not produce a huge profit but is bound to stabilise the value of the whole available portfolio of assets in the long-term. When considering long-term investment in gold, it is advisable to choose ethical gold, with a guaranteed origin, and without additions derived from re-melted products. Investment diamonds were discussed by Tomasz Sobczak, the Polish Gemmological Society. It is unquestionable that this topic is currently on top. Diamond has the highest hardness of any bulk material. Why is investing in diamonds worthwhile?

Polish Market Round Table It is a universal currency. Diamonds continue to grow in value and are extremely resistant to acids and temperature. Investment in diamonds produces a return in the form of a real-value stone. This way your investment is exempted from tax. The added value of such a solution is the possibility to transfer it by way of a gift or a bequest. With diamonds there is no room for “chance” as in the case of gold. All diamonds are worth their price. “The gold market in Poland – market analysis and investment capacity” – this topic was explored by Piotr Wojd a and Rafał Wojda, Vice-Presidents, Mennica Wrocławska. There is no better option but to invest in gold. Why gold? Firstly, gold is a completely independent investment. This means that gold cannot be printed in extra copies, as it is a natural resource, restricted in its worldwide volume, and its price is determined by the market, not banks or politicians. Another benefit is that gold is a physical product you can take home, or deposit in the so-called land bank, which, again, gives us freedom from the system and its supervision, thus ensuring that no one will take our gold away. Thirdly, I would like to refer to the fiscal advantages, namely that gold is exempt from VAT, and after six months you are also exempt from income tax. In 2002 the stock value of gold, expressed in USD, was approx. $300 per ounce. Today it amounts to $1,7601,770, but it obviously is not fixed. The last year saw a record in this respect, between Q3 and Q4 2011, when gold reached nearly $1,900. The Polish market was divided among at least three players. Mennica Wrocławska was one of them. We are a company established in 2010. We have at least three main areas of activity, i.e. selling, storing and buying investment gold. Today, Mennica Wrocławska is the leader in sales and in growth, as it has the largest network of its own offices. Currently, there are nine of them. Why it is worth investing in wine was explained by Maciej Bombol, Wealth Solutions. Investment in wine is a valuable add-on to one’s investment portfolio and a method for its diversification.

Wine needs to be purchased in a specified number of crates and stored in wine repositories until sold. Obviously, not all alcoholic beverages can be used for this purpose. The most renowned winemaking region worldwide, producing beverages with a considerable investment potential, is Bordeaux. This region uses the oldest official wine classification, and products included in it constitute the backbones of multiple-investment portfolios in the world. However, Bordeaux wines are not the only ones suitable for capital investment. Portfolios can be successfully complemented with Burgundy, Champagne, or Tuscany tipples, as well as selected American and Australian wines. It is important to keep in mind that wine is a long-term investment with a recommended term of about 5 years. An assessment by the Wine Asset Managers LLP indicates, however, that, during the last 25 years, investments in wine have been characterised by a significantly-higher return rate, calculated for the subsequent 5-year terms, than the share or gold markets. To put that in perspective, an average 5-year return rate for investment in wine was 111%, for S&P500 index – 49%, for DAX – 61%, and for gold 49% as well. The subject of investing in art in Poland in the last 20 years was addressed by the artmarket specialist, Paweł Bernaś. Art is currently one of the assetmanagement components. World market revenue, foreign investor interest, and recently also buoyant demand in China, prove that we are talking here about enormous volumes of assets. The West perceives art as one of the important risk diversification elements. The art market in Poland can be considered official since 1989 when some small auction houses started to appear. What are the characteristics of investment in art? Low or negative correlation with traditional

share markets. Art is neutral in terms of inflationary pressure, with the return rate increasing along with investment-term length. In addition, such investments are secured with an underlying instrument and have no substitutes. When investing in art it is advisable to go towards diversification to some extent in this area as well, i.e. to invest in ancient, contemporary or young art, as each of these is governed by different parameters that need to be taken into account when making decisions. Finally, investment in high-yield bonds, as an alternative to the share market was examined by Jarosław Dąbrowski, Mana g i n g Pa r t ner, Dąbrowski Finance Sp. z o.o. Corporate bonds, which I would like to touch on today, are not yet popular among individual investors in Poland. Despite the overall development of non-treasury bonds, including corporate bonds, and an increase in their popularity with institutional investors, the retail-investor sector of the market has been neglected. At the time there has been no institution, which would be successful at providing corporate bonds as an element in the investment package. It has also been connected with lack of supply and demand for this type of notes on the individual-investor market. At the present, the situation is changing, due to the growing supply for corporate bonds, which is a response to the increasingly strict credit requirements on the part of the banks. The advantages behind corporate bonds contributed to a nearly fivefold increase in the capitalisation of non-treasury notes issues in Poland, rising from PLN19,837 million at the end of 2002, to PLN 97,539 million at the end of 2011. In Poland, corporate bonds are purchased chiefly by businesses and banks which jointly hold approx. 70% of all issued corporate bonds. The primary benefits of bonds include regular cash flows, stable revenue rates, a clearly-defined investment horizon, and the independence of the return rate from stock exchange conditions. :: 11 /2012 :: polish market :: 93

International relations

Closer than ever Libyan chargé d’affaires Bashir Abudher talks to Ewelina Janczylik- Foryś.

How could you describe cooperation between Libya and Poland. From the beginning the relations between Libya and Poland have been very strong. Poland has had a good reputation in Libya, especially in the time of the revolution. Poland supports the aspirations of the Libyan people for freedom. Not everyone knows that Radosław Sikorski, Polish minister of foreign affair visited Libya twice. On November 5, 2011 he was in Benghazi as the first minister of foreign affairs of the EU countries, which has made a declaration of recognition as the sole legitimate PRN partner contacts in

Polish companies declare a lot of interest back to the Libyan market, as well as a reference to the location of new business contacts. Despite the fact that the unstable situation in Libya is not conducive to the intensification of economic relations, Polish companies have already made preparations for the commencement of activities on site as soon as conditions permit.

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place of the Gaddafi regime. And on October 24, 2011 he visited Benghazi and Tripoli. Is it hard to start everything over. Absolutely. Libya right now is like a workshop. We need to build new airports, hotels. We need to build new infrastructure. Libya’s location is very attractive. I hope it will be an transit area between Europe and Africa. The first step is very important, and we are ready to make it. So how Libya is going to encourage Polish firms to invest in your country? Well, that is my task to do. We are arranging Economic Forum to show that Libya is a perfect place to make an investments. We need Polish companies to come back and to invest on the Libyan market - in all sectors like infrastructure, construction and energy.

Polish companies declare a lot of interest in coming back back to the Libyan market, as well as a reference to the location of new business contacts. Despite the fact that the unstable situation in Libya is not conducive to the intensification of economic relations, Polish companies have already made preparations for the commencement of activities on site as soon as conditions permit. In October 2011, a group of businessmen went to Libya, accompanying the Minister Sikorski on his visit to Tripoli and Benghazi. Currently on the market there are several Libyan -Polish companies that are taking action in order to fully return - are represented on the site. Libyan-Polish economic cooperation has worsened. In 2011, trade turnover reached USD 12.52 million, including USD10.66 million in exports and USD1.86 million in imports. As a comparison, in 2010 the turnover amounted to USD36.8 million, including reached USD36.53 million in exports and USD0.27 million in imports. We need to change this situation. A nd tighten our cooperation… Yes. Right know we are trying to open straight flights from Warsaw to Tripoli. We are negotiating with PLL LOT and Libyan air (Air of Libyan). I hope this will be a daily connection. We want to encourage not only Poland but also your neighbours to come to Libya. I think that is a good start. Could you tell me something more about the Economic Forum in Libya? We are still planning this Forum. The date depends on the Libyan government and now we have a new government. I hope this Forum will be held in December hosted by Minister of Economy and Minister of Tourism. The idea measure market Australia, Japan, Canada, Germany, Italy and Poland. We don’t want to limited the number of participating countries. This forum is open to all. Please tell me do the Libyans want to study in Poland? Yes, of course. Libyan people are interesting in studying pharmacy, medicine, engineering or rehabilitation. In Poland architecture is also very popular. ::

International relations

Neighbours’ talks The very first Czech Republic-Poland Economic Forum was held on 12 October 2012 in Warsaw. The conference was organised by the PTWP Group, the coordinator of the European Economic Congress (EEC), in conjunction with the Embassy of the Czech Republic and the Ministry of the Economy. This forum is one of the most significant bilateral economic meetings of recent years. The discussions centred primarily on the topics of energy policy, including joint Czech-Polish energy-related projects and investments, as well as on the questions of commercial exchange between the two countries. The conference was attended by representatives of economic sectors and business endeavours in Poland and the Czech Republic. Maciej Proliński The Czech Republic-Poland Economic Forum was officially inaugurated by the presidents of both countries. “The year 2011 was a good one

in terms of Polish-Czech economic cooperation. Trade is thriving in spite of the crisis that has crippled the global economy. During the last year, commercial exchange rates have increased by 16%. This is the quantification of our mutual success, achieved through the efforts of all those rationally-disposed businessmen who are fully aware of the fact that truly good business is done in a propitious political climate,” said President of Poland Bronisław Komorowski. President Komorowski also touched upon the subject of Polish-Czech infrastructure projects. “Those initiatives should be incorporated into the north-south networks throughout the whole of Europe. This is a great opportunity for both Poland and the Czech Republic. The current Forum provides us with an excellent occasion to discuss what else needs to be done in order to strengthen our cooperation for the common benefit. There is nothing that can replace a good neighbour – we know that from our everyday, not necessarily economy-based, experience,” added the president. “Poland’s and the Czech Republic’s perspectives on the problems plaguing Europe are very similar. I will be very glad to see our countries pursue the same stance during international

Bronisław Komorowski

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debates,” stated Vaclav Klaus, the president of the Czech Republic. “In the first seven months of 2012, we forged considerably more trade relations in comparison to the entire pre-crisis year of 2006. My visit to Poland should be regarded as a signal marking the era of closer cooperation between our two countries. The Czech people are carefully watching the ways in which the Polish economy is coping with the crisis. Even though the effects of the crisis are much more severe in the Czech Republic than they are in Poland, both our countries can rely on the strength of having their own currencies, their own instruments of economic policy. Both Poland and the Czech Republic need to expressly assert their common stance and support each other during debates at the international, EU level,” declared the president of the Czech Republic. He also remarked that Poland and the Czech Republic share a certain affinity, a mutual understanding. “I did not even need to use the translated transcription of President Komorowski’s speech. This is why our relations are that much easier,” noted President Vaclav Klaus. “9,000 Czech-based companies are part of the economic cooperation with Poland, a fact that shows the scale of this initiative,” said Minister of Trade and Industry of the Czech Republic Martin Kuba. “Both Poland and the Czech Republic have a history of economic growth built on industry. It is a proven fact that economies with stable industrial sectors fare much better than economies which are based on ‘soft’ service sectors. The policy of emissions reduction promoted by the EU government may produce certain effects, but it will not be favourable for countries such as ours. Our economies rely on similar energy-management systems and therefore we will uphold our common stance on matters concerning this particular sector,” added the minister. According to Waldemar Pawlak, deputy prime minister of Poland and minister of the economy, Czech and Polish companies are

International relations

favourable conditions for running a business while maintaining competitive commercial packages. “Further development of economic cooperation between our countries requires the creation of infrastructure networks, including energy and gas networks. The continued capital commitment of companies from both countries is also of great importance, as proven by the presence of the CEZ Group in Poland and the existence of Orlen in the Czech Republic. We firmly believe in the necessity of forging strong business relations between companies from our countries. That will facilitate the circulation of our products outside our borders, and yet we will keep the workplaces,” asserted the deputy prime minister. Waldemar Pawlak

Vaclav Klaus

better at handling business in times of difficulty, due to their ability to combine innovative methods with orderliness. This trend becomes apparent when we appreciate, for example, the high level of cooperation in joint initiatives of companies from the Czech Republic and southern Poland, which are capable of providing

President of PKN Orlen Jacek Krawiec appealed for improvements to the conditions of conducting business in the Czech Republic. “During a global crisis, demand for petroleum products drops drastically. Since 2009 it has decreased by 20%. Aside from the crisis, we are also forced to compete with the informal economy on the Czech fuel market, which is estimated to range between 15% and 20%. Due to these circumstances, our company - Unipetrol – has had negative net financial results for two years.” Kamil Cermak, the country manager and president of CEZ Poland, noted that Poland is facing the great challenge of introducing electronuclear technologies. “Because the Czech Republic already has two nuclear power plants, we have the experience and the know-how we can share with you. The development of nuclear power is beneficial for both countries, so the decisions regarding this matter should be made by our businessmen and our politicians, not the EU government,” he declared. “We attract approximately 2.5% of Czech investments. Czech businessmen are more and more interested in the Polish market. After the period of fascination with the opportunity to establish economic relations

with Western Europe, we are now starting to notice the potential of the neighbouring markets and attempting to make up for our negligence in this area. Of course, our two countries still compete against each other when bidding for foreign investments but we need to remember that investors perceive Central and Eastern Europe as a whole. The more we do to improve the image of our region, the better off both Poland and the Czech Republic will be,” said Sławomir Majman, president of the Polish Information and Foreign Investment Agency (PAIiIZ). Joint promotion initiatives targeted at the markets located in the further parts of Europe were also regarded as an interesting and stimulating aspect of the Polish-Czech cooperation. “By joining forces, both Poland and the Czech Republic can raise their attractiveness to foreign investors. The potential of Central and Eastern Europe is made up by 200 million consumers. Our countries should also consider joint expansion on the markets neither has yet conquered. We would like to introduce the topic of creating a programme for our countries’ business promotion in the developing countries’ markets during the Visegrad Group meetings. We are thinking of initiating a new programme called ‘Go Africa,’” announced Ilona Antoniszyn-Klik, undersecretary of state at the Polish Ministry of the Economy. ::

The Czech Republic is the sixth most important economic partner of Poland, while Poland is the third trading partner of the Czech Republic. The most intense commercial exchange between the two countries is carried out in such sectors as energy, transport and the food industry. 11 /2012 :: polish market :: 97

Invest in Poland

Special economic zones issue new licences to investors In the ranking of the British fDi Magazine “Global Free Zones of the Future 2012/13”, Polish special economic zones are among the top 50. Polish Zones were placed at the following positions in the global ranking: :: 11 Katowice zone, :: 18 Łódź zone, :: 22 Wałbrzych zone Invest-Park, :: 35 Pomerania zone, :: 37 Starachowice zone. Among the European zones, they ranked first after Latvia. According to the authors of the ranking, the most effective zones are concentrated around a specific sector of the economy and are highly specialized in a specific branch of industry. Such zones invest in infrastructure and offer a number of facilities, even complete factories. Over 600 zones from 120 countries participated in the ranking. Their quantitative and qualitative data, collected according to 7 categories, were subjected to study: investment incentives infrastructure/facilities, profitability/costs, transport, availability, and the quality of staff as well as promotion strategy.

Katowice Special Economic Zone Magna Car Top Systems Poland has already received 3 permits for conducting activity in the Katowice zone. The company will produce roof elements for the Fiat 500 convertible car within the framework of a new project in Tychy. Its target investment is over PLN10 million. Energo Metal Polska will produce heaters and central heating boilers in Gliwice. Its goal is to employ 68 persons and to invest PLN16.7 million.

Łódź Special Economic ZoneThe The Ceramika Paradyż Sp. z o.o.

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company has obtained another permit for conducting economic activity in the Łódź Special Economic Zone - Tomaszów Mazowiecki Subzone. This is the sixth permit for the manufacturer of ceramic tiles. It plans to create a modern Commercial, Logistics, and Sales Support Centre in the Ceramika Paradyż Subzone, with a high storage warehouse and a system for assembling and dispatching finished products. In relation to the new investment, the company intends to spend at least PLN50 million and to create a minimum of 15 new jobs. The first stage of construction is to be realized within 18 months, and the entire project is scheduled for completion in September 2020. An important factor behind the decision to invest in the zone was the favourable location of the site. It is situated in the centre of Poland, at the intersection of the main traffic routes – the central European highways A-1 (Gdańsk - Vienna) and A-2 (Berlina Moscow) and of the express ways S-8 and S-14. It is the most advantageous logistical location in the country and one of the best in Europe.

Wałbrzych Special Economic Zone The Nifco Poland Sp. z o.o. company received a permit for conducting economic activity in the Świdnica Subzone. The company will conduct economic activity based on the production of plastic elements for the automotive industry. The company will invest at least PLN4.5 million and create at least 10 new jobs. The company is planning to complete the project by the end of 2016 at the latest.

Pomerania Special Economic Zone In Sopot, Mr. Jarosław Lapkowski and Mr. Sebastian Banaszek, Board members of HG Solutions sp. z o.o.,

received a symbolic permit for undertaking activity in the Pomerania Special Economic Zone. HG Solutions Limited, with headquarters in Gdynia, intends to build a production floor with administrative and welfare facilities in the Gdynia subzone on the premises of the Baltic Port of New Technologies, in which electrical switchgears and electrical equipment dedicated to the maritime and offshore market will be produced. For this purpose, the company, the majority shareholder of which is the Norwegian Hareid Group, plans to spend at least PLN5,000,000 and to employ at least 10 people in the zone by 31 August 2015.

Starachowice Special Econiomic Zone A new permit was granted for Rebond Sp. z o.o., with headquarters in Kielce, to conduct economic activity in the zone. This company plans to start the production of reflective multi-layered insulating materials - reflective thermal insulation - characterized by a small thickness. The conditions for activity have been specified in the issued permit: :: investment expenditures in the amount of at least PLN2,016,000 by Nov. 30 2015 :: employment of at least 25 new employees by Nov. 30 2015 and maintenance of employment at the level of at least 25 employees until Nov. 30 2018. ::

Invest in Poland

Successful in promotion Piotr Wojaczek, President of the Katowice Special Economic Zone, talks to “Polish Market”.

According to the FT ranking (FDI), the Katowice Special Economic Zone (KSEZ) is the second best zone in Europe and the eleventh globally. What assisted KSEZ to such a high position in that ranking? To begin with, we have already matured. Perhaps we still make imperfect decisions at times, but those are much less common than before. This relates equally to the adopted development strategy, the choice of location for new areas, and the infrastructure. Moreover, our environment, Silesia, has an enormous influence on the way we are seen in the rankings. Our labour resources, location, and infrastructure condition are assets we are trying to utilize as best as possible. This gave you proof that KSEZ is the best of all Polish zones. Modesty aside, we did not really need this proof. Seriously speaking, though, we do not like taking part in “beauty contests,” mainly because my role in shaping the reality of Polish special economic zones is rather significant by virtue of my position as chairman of the Conference of SEZ. It is true, however, that our zone is the leading one, as we boast the highest capital expenditure among all 14 zones - one in four zlotys invested in Polish SEZ is located here - and the largest number of new jobs - one in five jobs created in SEZ is here. It is also, and perhaps primarily, because we have experience in several hundred projects, including a considerable number of major international undertakings. We share our knowledge with our colleagues from other zones. Each zone started on a different level, but we were all forced to cope in difficult, even extremely difficult times. There are a number of zones in which road and rail infrastructure is very underdeveloped, and the authorities of those areas are not to blame for it. That is why I do not like such comparisons, but I am glad someone noticed us.

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In the zone-assessment criteria used in the ranking a lot of space was dedicated to zone-promotion policy. How to achieve such marketing success that KSEZ has attained? If I claimed that I can give you a conclusive answer to this question, I would not be telling you the truth. What we are doing these days we are not doing as intuitively as we did once. It is more refined, as it follows from reflection and experience. We consciously choose to stay in the background, while the investors’ stars shine, but their light illuminates us too. It shines brightly and that is why it is easier to notice us. We take advantage of this in all events we hold. We base our promotion on our clients and our successes, while stressing our ancillary function, which is our real role. I believe it is a good way. Another is direct marketing, which is simply the selection of fields, units, and projects we want to reach. Effective promotion is vital. Local governments, from provinces to small communes, play a very important role in this area. We are successful in joint promotions, which raises the efficiency of using funds for this purpose, which are, after all, limited. A re you not concerned that, in seeking funds to fill the national budget deficit, somebody could have a “wonderful” idea to do away with the exemptions granted to companies in the zone? First of all, the exemptions already granted are ring-fenced. Second, I trust in the common sense of decision-makers, which means that even if they have a bad day and say something of this sort, it is only some temporary tactics, and not a serious conclusion with possible consequences. Also, if people treat the regional-development strategy seriously, they cannot achieve it without the zones, as a zone is not just two or three thousand hectares of land in each

province, but, as here, some PLN19 billion invested and 50,000 jobs created over 15 years. There are important assets that cannot be measured and there are results, which cannot be expressed in figures, such as the invaluable implementation of management culture, one with which our clients have approached us. This is their technology and valuable experience. New undertakings in the zone also change the face of our society, giving it a sense of confidence about the future. I intuitively feel how much we owe to our investors in the field of effectively promoting Poland globally. All this would cost big money - billions of zlotys, and I think it is comparable to the amounts of hard cash flowing into local government accounts and the national budget. What lies ahead? The zones will probably assume more complex tasks soon, as they are given an important role in building a cluster-based economy, which means that we should stimulate, coordinate, and also manage cluster structures. Thanks to our exceptional placement between business, local government and central administration, in many provinces the zones show ambitions to be integrators of business communities. Our activities will extend into at least two fields – the labour market and technology development at the pre-competition stage. The zone managers will become active participants in the process of shaping the labour market through the impact on the local and regional education entities in the field of providing balance (in quantity and quality), and the supply of graduates in accordance with the demand of the business community. We should also become coordinators of programmes, pilot programmes for start-ups, serving to rebuild the system of industry practice during studies, which significantly improve the competitiveness of our human resources, which is one of the most important arguments in choosing investment location. Finally, a crucial function – we would like to substantially develop our role as stimulators of closer cooperation between science and business. ::

Events

Tubądzin Group

awarded Exports Champion title Tubądzin Group is one of the First from right Andrzej Wodzyński, co-funder leading Polish manufacturers of and long-time President of Tubądzin Group ceramic tiles. Its first manufacturing plant was set up in 1983 in Bartochów. When production plans exceeded the factory’s capacity, its owners – Andrzej Wodzyński and Zygmunt Kaźmierski – moved it to Tubądzin in 1988, launching a full tile-manufacturing cycle. In 1994, the company introduced a cuttingedge production line based on monoporosa technology for singlefired tiles. With the line launched, the company could boldly enter European markets and establish a secure position among the industry’s elite. 1996 saw the opening of a professional laboratory and a awarded Tubądzin Group twice – in 2000 and so-called vetrosa department which started 2005 – with the Company of the Year title, folto manufacture ceramic tile strips and decolowed by the Firm of Two Decades distinction rative elements, significantly expanding the in 2010. Tubądzin’s “responsiveness to peocompany’s product range. In 2000, Tubądzin Group established another plant in Ozorków, ple’s needs and generosity for those in need” as one of the most advanced European facilhave also been honoured by the Chapter of the Polish Business Club with the Social Face ities specializing in ceramic tiles. Following the acquisition of the German Korzilius Comof Business 2011 title. The Fair-Play Compapany in April 2008, the Group could offer fany of 2002 is another distinction the company received in recognition of its integrity and cade and clinker tiles to its clients. A month later, it opened the sector’s first Logistics Censensitivity to community problems. Tubądzin tre in Cedrowice. From the very beginning, can also take credit for being an active promotTubądzin has continued to broaden its range, er of the Polish economy, a merit which has raise product quality and diversify its designs. earned the company two Cups of the MinisSince 2009 one of the collections has been deter of the Economy, in 2002 and 2004, and the signed exclusively for Tubądzin by Maciej Zień, Exports Leader Award from the Polish Chamthe most renowned Polish fashion designer. ber of Construction Industry and Commerce. Among the distinctions awarded by independent experts, a prominent position is held by the The company’s products enjoy considerable Teraz Polska emblem for Tubądzin wall tiles popularity and recognition, not only in Po(in 2002) and floor tiles (in 2004). The Indusland, but also on the markets of Russia, Belarus, Lithuania, Latvia, Estonia, Ukraine, trial Design Institute granted the Good Design Germany, France, Belgium, the Netherlands, title to the company’s products, emphasizthe United Kingdom, Ireland, Sweden, Noring their exceptional originality. Mosaic tiles way, the Czech Republic, Slovakia, Hungary, turned out to be a gem of sorts, being electRomania, Bulgaria, Austria, Greece, Kazakhed the Pearl of Ceramics in 2004, an accolade stan and Moldova. which later went to the Calle and Homme colIts dynamic growth combined with the lections in 2006, and Alabastrino and Harion continued efforts of the entire staff are apprein 2007. Furthermore, the Lido tiles were recciated by clients, various economic institutions ognized and selected the 2009 EU Pearl of Ceand independent experts alike. For its contriramics and the London collection received the bution to the development of Polish entrepre2009 EU Pearl of Ceramics Distributors. The neurship, the Polish Business Club Association myriad of distinctions is further supplemented

by the Bathroom - Choice of the Year statuettes awarded to the company’s products in 2005, 2007, 2008, 2009 and 2011, for the top quality and design values. Tubądzin’s latest laurel the title of the Polish Company - International Exports Champion – was awarded for the first time by PwC (former PricewaterhouseCoopers), a leading global professional services firm, during the Economic Forum in Krynica. Being the only winner in this category, Tubądzin received the title for success in promoting the quality of a Polish brand on foreign markets, the dynamic increase in sales, also in exports, and the constant fostering of its importance in the region. “This is a great honour for our company and the whole team. I’m so proud that over the nearly 30 years of Tubądzin’s history, we have managed to build an enterprise able to efficiently compete with the largest, global players, both in Poland and abroad. This success shows how to consistently raise a company’s value – starting from a small workshop in the backyard, building one’s own factories, and eventually acquiring foreign plants. Constant growth and focus on quality and international expansion allow us to continuously boost our sales, also on many European and Asian markets,” stresses Andrzej Wodzyński, co-founder and long-time President of Tubądzin Group. This is the first time that PwC has run the Polish Company – International Champion competition. The laureates receive only two awards – the Exports Champion and the Investment Champion – and the contest aims at promoting Polish companies successful in these two areas. Another goal is to present the activities of Polish businesses on the domestic market, with special regard to the resulting benefits, both for those companies and the entire Polish economy. The competition takes place under the following theme: “Polish Companies – The Best Ambassadors for Poland Abroad!” :: 11 /2012 :: polish market :: 101

Cultural Monitor Compiled by Maciej Proliński

Szapocznikow Conquers the World

She is one of Europe’s recognizable artists and exhibitions of her sculptures have been staged by prestigious institutions. But after her premature death, it was not until 2004 that her work was shown to international audiences – the exhibition “Flesh at War with Enigma” at the Kunsthalle in Basel featured some of her sculptures. Then, her works Alina Szapocznikow, were added to the collec“Big Bellies,” 1968 tion of New York’s Museum of Modern Art, one of the most prestigious museums in the world. Although she died at the age of 47, she blazed a trail leading to contemporary developments in world art – to what is called post-pop. She was a predecessor of many big names of contemporary art, like for example Jeff Koons, wrote the prestigious “New York” magazine. After exhibitions in Basel, Kassel and Brussels, Szapocznikow’s sculptures have been on display at New York’s Museum of Modern Art since October 7. The exhibition will then travel to Los Angeles. ::

Norblin Rediscovered

Photo: Poster Museum in Wilanów

The retrospective exhibition of works by Stefan Norblin (1892-1952) at the Poster Museum in Wilanów is entitled “Art Beyond Time.” It is the artist’s first large exhibition in Warsaw since the inter-war period. It will be on until January 31, 2013. Stefan Norblin, a great grandson of Jean-Pierre Norblin de La Gourdaine, a painter, illustrator and poster and interior designer highly valued during his lifetime, is an example of an artist free from stylistic constraints. He was successful at making stage Stefan Norblin, scenery, wall paintings and advertising prints. He “Shoot with a Bullet,” poster made outstanding works for clients from Poland, the United States and India. The exhibition in Warsaw features his works from Polish and foreign collections, including many posters, portraits of well-known personalities, designs for palace interiors and theatre costumes, and a unique religious painting. “The year 2012 marks the 120th anniversary of Stefan Norblin’s birth and the 60th anniversary of his death,” says Maria Kurpik, curator of the Poster Museum in Wilanów. “It is an excellent opportunity to show the work of this outstanding Polish artist, his extraordinary and colourful life, which ended with a tragic death by suicide.” ::

Good Design An exhibition of the best designed products and services, featuring works by the finalists and winners of the Good Design 2012 competition, will be on at the Industrial Design Institute (IWP) until December 9, 2012. The competition, run by the Institute since 1993, is open to the producers, distributors, service providers and design studios whose products and services have been recommended by IWP experts. An international jury, meeting on October 10, selected the winners of the Good Design 2012 competition in four categories: Home Sphere, Work Sphere, Public Sphere and Service Sphere. Additionally, as usual, the minister of the economy granted the Design of the Year award while the IWP president granted the Designer of the Year award. This year, 187 products and services were entered for the competition, of which 91 were selected as finalists. The exhibition features 84 firms, of which 69 are Polish organizations. The special award of the minister of the economy, Design of the Year 2012, in the Public Sphere category went to the Felix 8X8 airport emergency and fire-fighting vehicle produced by the Wawrzaszek ISS Sp. z o.o. company. Its main designer is Agnieszka Fujak. This Polish product costs EUR1 million and interest in it is very high. Very interesting designs were submitted for the competition in the Service Sphere category this year, proving that this segment of the market, as is predicted by economists, is the future of the economy. The Good Design 2012 award in the Service Sphere category went to the InPost parcel-machine service. ::

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Photo: Kino Świat

Photo: Roger Gain

Alina Szapocznikow (1926–1973), one of the most outstanding 20th-century Polish female sculptors, again delights art connoisseurs with her work.

Scene from Jakimowski’s film “Imagine”

Jakimowski’s “Imagine” The long-awaited new film by Andrzej Jakimowski, “Imagine”, has opened two prestigious European festivals: the 56th BFI London Film Festival and the 28th Warsaw Film Festival. “Imagine” is Jakimowski’s third full-length feature film. He has won Polish film awards for his previous films – the Eagle award for “Zmruż Oczy” (Squint Your Eyes) and the Golden Lions award for “Sztuczki” (Tricks) at the Polish Film Festival in Gdynia in 2008. The international co-production “Imagine”, is a story of Ian (Edward Hogg), a charismatic teacher of the blind who comes to a prestigious centre in Lisbon to help young patients acquire a sense of direction. “I wrote the screenplay for ‘Imagine’ after several months of studies on the navigation techniques used by the blind. I think these methods are thoroughly poetic and at the same time are a very good material for a film,” Jakimowski says. “Imagine” will hit the Polish screens in the first quarter of 2013. ::

Cultural Monitor Marek Bieńczyk with the Nike Award

Nike 2012 Award The collection of essays entitled “Książka Twarzy” (A Book of Faces) by Marek Bieńczyk was chosen this year as the Book of the Year in the 16th Nike Literary Award competition. The winner, honoured not only for the diversity of the topics he undertakes, but first of all for the beauty of his literary style, received the Nike statuette designed by sculptor Gustaw Zemła and PLN100,000.

Photo: Agora

In his speech, head of the jury Tadeusz Nyczek praised the special form of Bieńczyk’s text, one which accords value even to trivial and mundane things. In the 400 pages of his book, Bieńczyk presents his literary and existential profile. He simply shows the reader how he writes and what he lives and breathes. Apart from his own face, the book shows tens of portraits of his “friends” - Chandler, Chateaubriand, Baudelaire, Krasiński, Słowacki, Beenhakker and others. The annual competition is open for works of all literary genres, including autobiographies and essays. The award is granted to a single living author writing in Polish. It is funded by the Foundation of the Nike Literary Award and the “Gazeta Wyborcza” daily. Among the previous laureates are Olga Tokarczuk, Dorota Masłowska, Wiesław Myśliwski, Andrzej Stasiuk, Jerzy Pilch, Tadeusz Różewicz and Czesław Miłosz. ::

Here are some of our recommendations of Polish films and music put out on CD and DVD: “Kłopoty to moja specjalność” (Trouble Is My Business) TVP DVD Screen adaptation of a crime short story by Raymond Chandler, a classic of American hardboiled crime fiction writing, directed in 1977 by Polish film director Marek Piwowski. Philip Marlowe, Chandler’s fictional private detective, is intelligent, witty and excels in making surprising comparisons and sarcastic comments, which annoy his adversaries. His attitude towards truth is a bit nonchalant. The unforgettable Jerzy Dobrowolski, a famous Polish comedian and actor, played the part of Marlowe in Piwowski’s film. A gem from the archives of Polish public television TVP – charm, humour surprise and irony of the highest calibre.

“Ferdydurke” TVP DVD

The first screen adaptation of a novel by Witold Gombrowicz directed in 1985 by Maciej Wojtyszko, one of the best Polish theatre, film and television directors, to a script he wrote together with his wife Henryka. The treatise on eternal immaturity shines on the silvers screen with stars, most of them associated with Cracow’s stages. The main part of the narrator-protagonist-Joey is played with bravado by Jan Peszek.

Daniel Bloom “Film Music” Creativemusic 3CDs

“Film Music” is a project summing up the artistic achievement of Daniel Bloom, a specialist in atmospheric music. Bloom, a composer, singer and multi-instrumentalist, is known as the

composer of the soundtrack for the cult films directed by Jacek Borcuch: “Tulipany” (Tulips), “Wszystko, co kocham” (Everything I Love) and others. He calls his music style an electronic freestyle, combining elements of jazz with electrokitschy sounds of 20 years ago. Among the singers are Tomek Makowiecki and Ania Dąbrowska while Leszek Możdżer plays the piano. The two additional discs contain Bloom’s earlier music played with his Physical Love band.

Joanna & The Forests “Jaśniebajka” Creativemusic

Joanna Prykowska is remembered as the vocalist of the Firebirds rock band. She has recorded three discs with the band. After a break of several years, the artist presents her new project – Joanna & The Forests. The music is pervaded with the idea of returning to nature, ballad soft sounds and contact with another human being. Very feminine good Polish rock - mysterious and atmospheric.

Voo Voo “New Album” Agora CD

A new album by a legend of Polish rock, the Voo Voo band. It is a special album – intuitive and conceptual at the same time – combining artistic competence, humour, ease and the joy of playing music together. The quartet with the new percussionist Michał Bryndal, who is much like Voo Voo’s first percussionist Wojciech Morawski, sends a mature and positive message to the oldest, loyal fans of the band and those who still do not know Voo Voo’s multifaceted history.

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Culture

The audience is the priority Aleksander Ładysz, a Polish singer endowed with a fine bass voice, son of Bernard Ładysz, a legendary Polish musician, talks to “Polish Market’s” Maciej Proliński.

This year’s Pearl of Culture, awarded for the fourth time by the “Polish Market” magazine, goes to a great opera voice, Bernard Ładysz. How do you understand the promotion of Poland worldwide through its culture, or, more precisely, by singing? I believe that Polish culture can boast grandeur. And there is no better way Poland could promote itself around the world. Poland has always been a country whose trademark was culture. Polish music has established itself in a prominent position worldwide and even more so in Europe. We continue to enjoy fair representation on the international stage. Polish

bands, vocalists, and composers share the spotlight. New concert halls are emerging. We can be proud of some very talented young people, too. We are in a good artistic relationship with the world. Let me remind you about my father who came to be the only Pole to have a chance to sing with Maria Callas! In 1956 he won the International Vocal Competition in Vercelli and was awarded the most prestigious award, “Il primo premio assolutio”. That event marked the beginning of his great international career. The amazing and very comforting thing is that people recognize his name to this day! But coming back to present times, I think that nowadays our primary concern should be that we, as Poles, tend to think of our art in very local terms, forgetting that even today classical musicians rise to eminence – take Aleksandra Kurzak, Mariusz Kwiecień and Piotr Beczała for example. These are but a few of our contemporary natives accomplished in the craft of vocal artistry. But why do these great names tend to get so little publicity in Poland? This seems to be the case particularly with opera singers, doesn’t it? I am afraid you are addressing the question to the wrong person. I cannot provide you with a satisfactory explanation. Maybe such propositions are simply not made. Possibly, the directors of the relevant establishments in Poland, or our stage managers, believe that if we perform abroad we are short of time to sing in our homeland, which is of course a false assumption. I believe that this comes down to certain transformations. Maybe today Poland speaks the voice of the people who prefer to indulge in rather doubtfully-ambitious entertainment? W hen did music enter your life? How did you come to think about

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singing? Your family name seems to be the rationale, but it also entails great responsibility, doesn’t it? My first experience was rather accidental. I have more of a scientific kind of mind. I did not plan to become a singer. I wanted to go to a university of technology. As a young lad I happened to become acquainted with Ms Katarzyna Zachwatowicz, a vocal teacher and a friend of our family. She was the first to notice that I have a “hell of a voice”. She talked me into applying to a music school. It turned out that I have it! Then it simply happened. I graduated from the Warsaw Academy of Music. I studied singing under the tutelage of eminent Polish singer Michał Szopski. Quite early during my studies, in 1981, I started working at the Teatr Wielki (Grand Theatre) Polish National Opera in Warsaw as a member of the choir, and later on as a soloist. The director of the Theatre was at the time Robert Satanowski, who entrusted me with a number of parts in new opera performances, including Subiekt in “Manekiny” (Mannequins) by Zbigniew Rudziński, adapted from a prose work by Bruno Schulz. This piece was later staged by the Warsaw Opera in multiple theatres in France, Germany, Belgium, Luxembourg and Israel. You met many leading personalities in the world of classical music – which of these meetings and which of the stages are etched on your memory the most? During my numerous artistic voyages I had the opportunity to sing in almost all European countries and to perform on such legendary stages as the Bolshoi Theatre in Moscow, Wiener Staatsoper (the Vienna State Opera), and the Semperoper Dresden. I pride myself in having had the opportunity to perform on these stages. They are all different. Each of these locations represents an individual value. But I believe that the stage or the country are of lesser importance here. The audience is the priority. If we give eight or nine encores it means that they must have liked the show. And this is what stays in your memory.

Culture

You are engaged in a variety of different projects. Several years ago you worked as a singer and manager in the Representative Artistic Ensemble of the Polish Armed Forces. What was the reason behind this choice? That is correct. In 2003 I accepted an offer of cooperation with today’s largest European military musical group, the Representative Artistic Ensemble of the Polish Armed Forces, as a manager and a soloist. Now my professional interests revolve around different music. I continue to be in touch with the group, though – it is our family tradition as well. I always think of that ensemble with sentiment as I associate it with patriotic and military music, which is of great value. And what is important for you, as an opera singer, in a song? For you happen to sing more light-hearted songs as well. It is a very risky combination. Not everyone is fit for making successful attempts at such fusions. Opera means conventions. Stages, songs, patriotic melodies are always about creating something new. There is some kind of improvisation, too, which arouses excitement. It has a sparkle of creativity in it. In the opera you work on your part. In a song you work on the lyrics and interpretation – a new work that emerges. Sometimes you do not even know what kind of outcome you will see in the end. It is always an inspiration. Is there anything in the pipeline we can expect to be published in Poland soon that will involve your work? This year I have made an attempt to create a publishing series called the “Golden Collection of Polish Singers”. I started with an album devoted to my father. This special publication features a CD with arias and performances, including the greatest bas arias recorded by Bernard Ładysz in 1960 with the Warsaw Opera Orchestra, directed by outstanding director Jerzy Semkow. There is also a handful of Scottish, English, Irish, French, and Polish songs, with the accompaniment of an orchestra directed by Antoni Wicherek, and a DVD film on my father, directed by Bohdan Kezik. Also,

the publication offers the most detailed biography ever published on my father, along with the list of his parts, a filmography, and a selection of photographs. Such stories as my father’s artistic journey, are, in my opinion, worth recording. Is it true that Krynica Zdrój has recently become your place on Earth? I have been running an artistic agency called POL CAN Art Management in Canada for several years now. I came to Poland and Krynica Zdrój in 2010 for purely personal reasons. Quickly, I came to the conclusion that this place needs “dusting”. For it is a very magical, enchanting area, the town of Jan Kiepura. This year, in cooperation with the Krynica Żegiestów Health Resort, I have managed to renovate Kiepura’s piano. We plan to organize a series of concerts to be played on this piano, involving not only classical music. Please feel invited to come to the concert by actor Jacek Borkowski and singer Ewa Kuklińska, which is to take place as early as 28 December, and which will feature some songs from the inter-war period. Since last year I have also been the editor-in-chief of “Gazeta Krynicka”. It is rather peculiar that this town did not have its own newspaper until now! That is where the idea originated to introduce a new enriching experience for the residents of Krynica Zdrój and tourists alike. On 16 November you are singing at the “Polish Market” Gala. What can we expect to be treated to? I wish to thank the editorial staff of “Polish Market” for inviting me to the Gala. The Royal Castle in Warsaw is one of the grandest locations in Warsaw, if not in the whole of Poland. Let my repertoire remain a little secret. Suffice it to say that it will reflect my artistic profile over the last 30 years of my career. It will be, of course, only a tiny selection, but I hope that, although modest, it will appeal to the audience. Why is it so modest? Because there is not enough time for a fully-fledged concert. I want to present three pieces from my father’s repertoire, as well. Songs that remind me of him. If my name were “Smith”, it sure would have been much easier. Still, I hope I will manage to rise to the challenge. :: 11 /2012 :: polish market :: 105

Pictures: Narek Avetisjan

Culture

Girls with a Pearl Earring Of late, the Pod Blachą Palace in the Royal Castle Museum in Warsaw has hosted an exceptional exhibition entitled “Metamorphoses of the ‘Girl with a Pearl Earring.’ Simulacrum. 33 Encounters with Vermeer” featuring 33 variations on the 17th Century Dutch painter Johannes Vermeer van Delft’s masterpiece, as reimagined by Narek Avetisjan - an Armenian painter of the young generation. The exhibition is a playful and intellectually-stimulating encounter with the bulk of the European art legacy. The project is composed of a series of variations, each piece containing a manifestation of a different convention – from classic painting to cubism and expressionism, to name but a few. The author’s inspirations boast a stylistic variety spanning over works as different as Hieronymus Bosch’s and Pablo Picasso’s. The exhibition is open until 25 November. You are welcome to visit! Maciej Proliński Narek Avetisjan is the son of a famous Armenian artist, Minas Avetisjan (1928-1975). Born on September 20, 1969, he now lives and works in Yerevan. During the years 1988-92, Avetisjan was a student of painting at the Yerevan Academy of Fine Arts. He describes himself as a practitioner of “art in its pure form.” He represented Armenia at the 48th Venice Biennale in 1999 with his “Earth. Dream. Space.” project. Since 2000 Avetisjan has used computers in his creative process, incorporating videos and large-format printed images into his art. In 2005-2006, he created several light and sound installations as well. Avetisjan is one of the top artists on the Armenian art scene. He likes to mix formalist tendencies with a conceptualist approach. His works were displayed as solo exhibitions in France and other countries, and also at a number of collective art exhibitions: in Spain, Switzerland, Russia, Italy and Iran.

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The project exhibited in Warsaw provides the general public, particularly the younger audience, with an opportunity to confront the traditional perception of art with modern means of expression, while pointing out its multidimensional nature and intertextuality. This artistic experience revolves around the theme of 33 reimagined aspects of the classic “Girl with a Pearl Earring” masterpiece by Johannes Vermeer. It constitutes a projection of famous trends in painting, both global and strictly Armenian, as well as a handful of individual, idiosyncratic techniques. Avetisjan’s exhibition is accompanied and complemented by the orchestral piece of contemporary Armenian composer Wahan Artsruni, written especially to enhance the visual display. The audio aspect of the project, through its sheer immanence, becomes the “33rd modification...” However, the

general theme of the exhibition does not discourage spectators from viewing each piece as an autonomous work of art. We guarantee that you will smile with delight at each individual painting! “The exhibition’s subheading ‘Simulacrum. 33 Encounters with Vermeer’ (the term ‘simulacrum’ is a Latin word for ‘representation’) is a reference to Plato’s dialogue ‘Sophist’ and resembles the complex relations between a model, its representation and the abstract, universal Idea,” says Daniel Artymowski, the Art Curator of the exhibition, and the Curator at the Royal Castle Museum in Warsaw. “Narek Avetisjan’s art has a more expansive context but as an art curator, I find it most fascinating how it enables us to encounter all those creative personalities of European contemporary art. How the artwork smoothly passes from convention to convention associated with – seemingly inimitable – works of the geniuses of painting. This feeling is comparable to the experiences of the protagonist of Woody Allen’s ‘Midnight in Paris’. He got a unique opportunity to travel almost a century back in time and was able to meet the famed personalities of the bohemia – most of whom are coincidentally invoked in Narek Avetisjan’s works. This is not the first instance of European culture being analysed, transformed and glorified by an individual who lives on the outskirts of the Old Continent proving how intriguing a culture it can be when viewed from an outsider’s perspective. We strongly encourage everyone to come and see Avetisjan’s pieces at the exhibition of Far Eastern carpets organised by the Teresa Sahakian Foundation – another proof of the connection between Armenian culture and Polish and global traditions,” ::

Human Capital on the Polish Market Małgorzata Barska In early October she was appointed President of the Board of ING Investment Management (Poland). Her previous responsibilities (for fund sales and marketing) will be extended with additional responsibilities at the level of international cooperation within ING IM B.V. She graduated from the Warsaw School of Economics and completed Mastere de Management Industriel Europeen postgraduate studies organised by Haute Etudes Commercialles (HEC) in Paris. Between 1997 & 2005 she continued her professional development in the automotive industry; initially in Fiat Auto Poland, later with Volvo Auto Poland. She was responsible for sales development in key accounts, and later she led the sales department. Since 2005 she has operated in the financial sector. During her career in Bank

Handlowy (Citibank), she held a number of functions: starting from the Director of the Citigold department, Director for cooperation with strategic partners, Director for Citigold Portfolio Management and Regional Director for sales of investment and insurance products. From 1 June 2008 she was a member of the board of ING Investment Management (Poland) and a member of the Board of ING Towarzystwo Funduszy Inwestycyjnych (Investment Fund Society), where she was responsible for the sales and marketing department. Since 2 October 2012 she has been the President of the Board of ING Investment Management (Poland) and the Vice-President of the Board of ING Towarzystwo Funduszy Inwestycyjnych. ::

Tomasz Raczyński President of the Międzynarodowe Targi Łódzkie Spółka Targowa Sp. z o. o. company (Łódź International Fair Company LLC). He was appointed by the company’s Supervisory Board. The founder and shareholder of Kolporter Expo. After obtaining a market position in the industry of fairs, exhibitions and conferences organisation, the initiator

of building Expo Silesia – currently the largest fair and exhibition centre in southern Poland. Its creator and supervisor of the investment process. He also created a programme of more than 30 industry exhibitions, which, debuting in 2008, gave Expo Silesia third place on the fairs market in Poland with an over-5% share. ::

Andrzej Woźniakowski, President of Futuris SA Since the beginning of his professional career he has been associated with the IT industry, and for several years he has also operated on the capital market. He graduated from the Faculty of Electronics of the Warsaw University of Technology. He started his career in Sekom (currently Qumak-Sekom S.A.), where he worked as a service engineer, and then Technical Director. He was the founder and

(from 1995) President of the Board of Computer Service Support S.A., which he floated on the Warsaw Stock Exchange in 1998. In 2007 he led to the merger between CSS S.A. and Comp S.A, creating one of the country’s largest IT services providers, where he assumed the function of the Vice President of the Board. The new President of Futuris S.A. is also the founder of IT companies. ::

Paweł Wójcik In September 2012 he was appointed Managing Director of the Polish branch of Boiron, the global leader in homeopathic-medicine production. He has long-standing managerial experience in the pharmaceutical industry, in which he has worked since 1992. He has been at Boiron in Poland since 1995, i.e. nearly from the beginning of the company’s operations on the Polish market. He created its sales structures, participated in preparing development strategies, and contributed to the achievement of a stronger position of the company on the Polish market of homeopathic medicines. Recently,

he has held the position of Commercial Manager. He holds a Master of Pharmacy Degree, having graduated in Clinical Pharmacy at the Faculty of Pharmacy of the Medical University of Silesia. He also graduated from the Faculty of Management of the Kraków University of Economics. The new Managing Director of Boiron Sp. z o.o. combines extensive experience in the field of sales management using innovative distribution channels with his knowledge of the pharmaceutical industry. His appointment is an opportunity for Boiron’s further development in Poland. ::

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Events

The 3rd edition of the Luxury Brand of the Year Awards On 28 October the 3rd Luxury Brand of the Year Gala was held at the InterContinental Hotel in Warsaw. The event was organised by Mariusz Pujszo and Excellent Events. At the ceremony, awards were presented to the most luxurious companies and the most exclusive products and services available on the Polish market.

Ewa Kuklińska and Mariusz Pujszo

Katarzyna Niezgoda

prof. Marek Krawczyk

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The originator of the idea to create a special “guide to luxury” and the organiser of the Gala was Mariusz Pujszo, actor, film producer and manager, who was the announcer at the event, together with the beautiful actress Aleksandra Szwed. The official Luxury Brand of the Year 2012 Gala at the InterContinental Hotel featured performances by Nina Nowak, Jerzy Grunwald, Nick Sinckler and others. Apart from that, fashion shows by Moodo, Vera Bags & DI Trevi, Proteas and Folk Design took place. The guests watched fashion shows and a documentary from the “Luxury and Beauty” Gala organised by Ma riusz Pujszo during this year’s Cannes Film Festival. Guests had the opportunity to taste delicious dishes served by the Chef of InterContinental Hotel and enjoyed drinks from all corners of the world. The event was attended by a number of celebrities, among others Katarzyna Niezgoda, Ewa Kasprzyk, Emilian Kamiński, Krzysztof Kasa Kasowski, Marek Włodarczyk, Hanna Bakuła, Aleksandra Woźniak, Jerzy Gruza,

Tomasz Puzon, Karol Strasburger, Władysław Kozakiewicz, Norbi, and Ewa Kuklińska. Guests from the whole Europe arrived, including directors of hotels InterContinental Carlton Cannes and InterContinental Berlin. Accompanied by great music, the event continued into the early hours.

The winners of this year’s Luxury Brand Awards: :: Narzan natural mineral water :: Goko Japanese Restaurant :: Super Premium Cars :: Szisza Majestic Waters :: Elite Group :: The Fenice Company :: Doctor Barbara Jerschina :: Pure Sky Club :: The Company of the Bielsko-Biała Municipal Brewery :: Unique Club & Lounge :: The Pieroth Polska Sp. z o. o. Company :: Moodo :: The Law Offices of Gajewski Trawczyńska Szewczyk :: Poziom 511 Design Hotel & SPA :: M & S Fashions - House Of Tudor :: House Of Tudor :: InterContinental Warsaw :: Sunreef Yachts :: Chopin Vodka :: Audi :: Zamek na Skale Hotel :: Itaka :: Clarena :: Dom Development :: Eva Minge :: Canal+ All laureats

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Food industry

Green passion Sylwia Rybicka, President of Symbio Polska S.A. talks to Ewelina Janczylik- Foryś on social awareness and organic food.

producers who are fraudulently taking advantage of the trend.

It is fashionable these days to eat healthy and organic food. Now, are we really that much into healthy dieting and food? It is true that organic food is “in” these days, and I am very glad about that. From what I see, however, the social awareness of what organic food actually is remains regrettably low. The fact that we buy a product marked as “health food” does not always mean it is actually organic food, that is to say a product certified as being produced by means of organic farming. The first thing to do would be to shed some light on the concept of organic food – which is food produced using natural materials as opposed to synthetic inputs such as pesticides, chemical fertilizers, synthetic hormones used in meat and GMOs. What is more, organic foods are not processed using preservatives or food colouring. Only these foods can be certified and called organic (or bio), and it is of utmost importance that we are aware of the fact. Hence our long-standing involvement in the Polish Ecology Association and cooperation with the Ministry of Agriculture and Rural Development, aimed at increasing the social awareness of what organic food actually is. Rather than promote a specific company, our aim is to support the idea of organic farming, to explain to people what ecology is about and what makes a given product organic. I am very happy about the fact that the Ministry has launched this year the “Organic Food – A Guarantee of Good Taste” campaign, as I believe it will help people recognize the right products, and make life more difficult for those

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The company has been around since 1998. This means it was established before “Eco” products had become trendy in Poland. This is true. We have been on the market for 14 years. We started with delivering organic farming products exclusively to Western European and North American markets, where demand for organic food was already there and would be on the rise. Initially, the company focused on establishing a group of organic food producers which would then be specialized in producing soft fruits such as strawberries, raspberries and cranberries, as well as vegetables. Thanks to the organized supply framework and quality monitoring system, from 1999 onwards the company started to provide organic frozen fruits and vegetables to major producers of formula foods in Europe, and quickly established itself as one of the key players on the market. It would take us several years in this business to decide it was time to try ourselves on the Polish market. Over time, we have succeeded not only in spreading the idea to existing businesses, but in securing new partners and financing for further development as well. This led us in 2005 to launch production and retail sales on the domestic market. Starting with jams and juices, we eventually moved on to cereals such as breakfast cereals, muesli and mixed dried fruit and nuts. Consequently, our product range expanded from several to 150 products. Symbio Polska, I am confident to say, has become the most comprehensive provider of organic-certified products on the Polish market and also, crucially, of products made by Polish farmers. In running our business, we were not responding to the growing market demand at this time. Quite the contrary. I sometimes joke about us being a bit like Steve Jobs, always thinking ahead of the market! We hope that increased social awareness will push the “eco” trend towards becoming a way of life for the major part of society. The more so because the scientists have been providing us with ever-growing evidence supporting organic food, such as the fact that organic tomatoes have a higher lycopene content.

What is it about your products that makes them regarded as “truly” organic? In order to ensure top quality for our products, we painstakingly monitor the manufacturing process at each stage - from sowing and planting, purchasing of inputs and manufacturing to delivering the final product to clients. We want to be sure, in fact we are sure, that our product is organic. Our main operations are situated in south-eastern Poland. All the seeds and seedlings used by the farms we cooperate with are certified as organic. What is more, to encourage specific farms to work with us, we provide farmers with advice and guidance through qualified consultants and cooperation with the Regional Agency for Agricultural Advice (WODR). We conduct ongoing sample testing of the products and soil from our farms to make sure they are free from the chemicals which are prohibited in organic farming, such as pesticides or synthetic fertilizers. All the farms and processing plants working for Symbio Polska are EU-certified by the Polish Society of Organic Farming (PTRE) Eco-guarantee. The certificate is honoured in the United States as well. Symbio Polska is also a holder of the BioSuisse certificate. What is more, it has been two years since we started producing inputs in accordance with the stricter standards set out by Naturaland, one of the major players on the German market. All the certificates we hold are representative of one thing: our dedication to provide top-quality products. When offering our products to clients, we are sure they are made in line with the organic farming rules, to which we adhere. The company has a mission, then. Exactly. With 100% of our products being organic, we may safely say our company is “purely organic”. Our mission is to create the vision of living in harmony with nature. The products we launch are of top quality without exception. The passion and enthusiasm we showed in promoting organic products sparked off a peculiar ecological trend which then in a natural (and healthy) way evolved to become a way of life (healthy and classy). Symbio’s recipe for success is simple: the best a human being can get is in nature. By taking advantage of it, we gain health and vitality – coming from the very source. ::

Food Industry

SRW RP at Polagra Food 2012 It was the 18th time that the Association of Polish Butchers and Producers of Processed Meat (SRW RP) organized the Forum of Butchers and Cured Meat producers as part of Polagra Food - International Trade Fair for Food 2012 in Poznań. This year it also took on itself the preparation of the trade stand “Meat from Poland”. The exhibition area, shared by several organizations, has worked under that slogan for three years and has garnered acclaim from the Management of the Poznań International Fair (MTP), the Ministry of Agriculture and Rural Development and the organizers of contests held at the fair. Bożena Skarżyńska

SRW RP always invites scientists from Poznań’s and Warsaw’s higher education institutions and technologists who work in meat industry companies to the cured meat contest committees

Also this year, the contestants of meat industry competitions have been awarded with a multitude of awards. The most precious of them are the ones presented by The Ministry of Agriculture for the Best Producers of Meat Products

The members of SRW RP (including Konarczak Meat Industry Company and Zyguła Meat Industry Company) received the Poznań International Fair Gold Medals for exquisite meat products, and the “Meat from Poland” stand organisers – the “Acantus Aureus” prize of Poznań International Fair

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This year the “Meat from Poland” stand received the MTP prize Golden Acanthus for the concept of a space dedicated to promoting the Polish meat industry and the method of its implementation. Over 50 members of SRW RP, the Polish Meat Association, the National Poultry Council – Chamber of Commerce, UPEMI (the Union of Producers and Employers of the Meat Industry), and others, promoted their products on about 800 square metres. The stand attracted great interest from visitors to the fair, Polish and foreign guests, and representatives of meatproducing companies participating in Polagra. At the Forum, the Association of Polish Butchers and Producers of Processed Meat presented a film on the industry’s important promotional event, which was Świętomięs Polski (Polish Meat Festival). This two-day event, organized by the Association, took place in September, and this time it was based in Silesia. Despite the extensive involvement of meat-producing companies in the region in the organization of Świętomięs, they also succeeded in getting ready for Polagra. Several of them participated in cured-meat contests, winning awards of product certificates and prizes. It needs to be added that SRW RP was also the organizer of cured-meat contests. This year saw the 15th edition of these. The best-cured meat and meat products were selected, and the 2012 Cured-Meat Producer title was awarded in the categories of small curedmeat producers and large companies.

The work is a painting entitled: “Cured meat more precious than gold” created in the Nowak Meat Industry Company in Gdańsk

The prizes were presented during the Trade Gala, which took place on 9 October and was also organized by the Association. The Gala featured artistic performances and the presentation of prizes to the best companies and distinctions on the occasion of the 90th Anniversary of SRW RP, which were received by representatives of the Ministry of Agriculture and Rural Development and the Poznań International Fair. Polagra-Food is also an excellent opportunity to hold meetings, conferences, symposia, lectures, and consultations. Among the events attended by Association members was the conference on the 10th Anniversary of the Food Economy Council at the Ministry of Agriculture. The Medal of the 90th Anniversary of SRW RP was granted to Bronisław Wesołowski, the Council’s Chairman. The “Meat from Poland” stand featured many meetings in various configurations. One of the participants was Minister of Agriculture Stanisław Kalemba. The stand was also visited by representatives of various offices and institutions acting for the food industry, including the meat industry. Over the course of the four days of the fair, this exhibition area was visited by several thousand people, and several hundred were interested in the promotion of horse meat and its curedmeat products. The stand was organized with cooperation from the Managing Committees of the Pork, Poultry and Beef Funds. ::