Warsaw Business Journal November 2023 #81

WARSAW

BUSINESS JOURNAL S i n c e 1 9 9 4 Po l a n d ’ s l e a d i n g

NOVEMBER 2023 ~ No. 6 (81)

business magazine in English

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ADVISORY& LAW FIRMS

SOURCES TO HELP SECURE YOUR BUSINESS

GUIDE

> UKRAINE'S CRISIS: A GLOBAL DOMINO EFFECT ON TRADE AND FERTILIZER > CRACKING THE CODE: POLAND'S UNEMPLOYMENT ENIGMA

NOVEMBER

10 In Review 16 Opinion News

Minimal Wage – Up Again and Biting by Sergiusz Prokurat

19 Lokale Immobilia

News Interview: Svetlana Fedosova, Entralon Event Report: Expo Real By Morten Lindholm Interview: Richard Hallward, CEEQA

27 WBJ Business Guide

Advisory & Law Firms Top 40 Advisory Firms Top 30 Law Firms

38 Features

Feature: Labor shortages by Sean Reynaud

42 Investing in Poland

News Interview: Alireza Shabani Feature: Securing Europe’s food pipeline by Sean Reynaud

51 Tech

News Feature: Space Tech and Quantum Tech by Beata Socha

57 Life + Style Oskar Zieta Rituals Desa Unicum Dock19 Lexus Chaton

57 2

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63 Events

PUBLISHER'S NOTE

The most significant event in Poland during October was the election, which saw the opposition win a majority. However, as of now, Poland is still without an official new government. The potential new premier, Donald Tusk, received significant support from young and urban citizens of Poland. He has already declared his intention to apply for and receive EU funds in 2023 to boost the Polish economy. Despite the political uncertainties, the most recent forecasts from banks and consulting firms provide an overall positive outlook for Poland's economy in 2024. Experts are projecting a GDP growth rate exceeding 3% for 2024, a substantial improvement compared to the expected 0.1% increase in 2023. However, while the economic outlook for 2024 appears positive, there are areas of concern that deserve attention. One pressing issue is the potential increase in consumer electricity costs, which could surge by as much as 70% in 2024. This substantial hike could impact the overall cost of living for ordinary citizens and businesses. Poland is also grappling with persistently high inflation, which reached 8.2% in September. While this is a slight reduction from previous levels, another concerning factor is the ongoing growth in labor costs that could potentially drive inflation up once more. Official statistics for 2022 reported an average increase of 12%. Minimum wages are also set to increase by over 15% in 2024, adding to the cost pressures (for more details, see our expert opinion on pages 16-17). Another factor affecting Poles and companies operating is interest rates. The current expectation for official interest rates in Poland (currently above 5.5%) is that they will remain stable until the end of 2023. However, there is a potential for them to decrease to 4% in 2024 unless external factors adversely impact the Polish economy. In both challenging and prosperous times, we always need valuable advice on optimizing our business. That's why, in this issue, we have devoted time and space to spotlighting the top companies in Poland's advisory and legal services so you can get an overview of where to find support for seizing opportunities in 2024.

MORTEN LINDHOLM

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PORTRAIT BY PIOTR NAREWSKI

POLITICAL CHANGES AND ECONOMIC UNCERTAINTIES

GUESTS

Alireza Shabani A renowned scientist and entrepreneur who has made significant contributions to the field of quantum computing. With a background in top-tier technological firms, he has crafted a remarkable career. Starting as a scientist, Shabani quickly transitioned into entrepreneurship. After over a dozen years of research into quantum computing, he joined Google, and later founded his own startup, Qulab. Later, he joined Cisco Quantum Lab, further showcasing his expertise and leadership in the quantum computing industry.

Morten Lindholm Editor-in-Chief/Publisher mlindholm@valkea.com

Kevin Demaria Art Director kdemaria@valkea.com

Jessica Sirotin Editor Contributors Sergiusz Prokurat Sean Reynaud Beata Socha

Article on page 44 Sales

Irena Pichola Irena is a Partner and Leader of Deloitte's Sustainable Development team in Poland and Central Europe, with 15 years of consulting expertise in stakeholder relations, marketing, and business development. Working with a multi-member team in Central Europe, she advises clients on organizational transformation strategies, reporting, impact measurement, reputation risk management, and environmental protection. Irena has developed sustainable development strategies, stakeholder relations management plans, communication strategies, and numerous non-financial reports. She serves on the Board of the Responsible Business Forum and actively engages in international organizations such as the Global Reporting Initiative, WBCSD, and CSR Europe. She's a lecturer of CSR strategy at Leon Koźmiński Academy and a certified GRI trainer. Expert View on page 30

Izabela Kaysiewicz ikaysiewicz@valkea.com Agnieszka Mańkowska amankowska@valkea.com Katarzyna Pomierna kpomierna@valkea.com Print & Distribution

Krzysztof Wiliński dystrybucja@valkea.com Event Director, Valkea Events

Magda Gajewska mgajewska@valkea.com

Contact: phone: +48 22 257 75 00 fax: +48 22 257 75 99 e-mail: wbj@wbj.pl

WBJ.pl

Magdalena Zalech Magdalena is a Partner in the International Tax Team at the Tax Advisory Department, specializing in international transaction taxation and reorganizations. She advises entities in the consumer goods and retail sectors on complex projects. Magdalena, a licensed tax advisor, focuses on international transaction taxation, including issues related to withholding tax and Mandatory Disclosure Rules (MDR). She handles comprehensive projects involving intra-group reorganizations and asset sales/acquisitions (M&A). Magdalena assists investors entering the Polish market and Polish businesses expanding internationally. She holds degrees from the University of Warsaw, as well as universities in Bonn and Chicago. Expert View on page 34

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

For subscriptions-related enquiries, please email us at wbj@wbj.pl WarsawBusinessJournal @wbjpl All photographs used in this issue are courtesy of partners and companies unless specified otherwise.

Copyright © 2023 by Valkea Media SA All rights reserved. This publication or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher. Published by ul. Jerzego Ficowskiego 15 Valkea Media S.A.01-747 Warszawa Tomasz Opiela, CEO NIP: 525-21-77-350 www.valkea.com To subscribe through RUCH SA: www.prenumerata.ruch.com.pl, prenumerata@ruch.com.pl, 801 800 803

IN REVIEW

Poland has taken the lead as the largest exporter of candles in the EU, with €922 million worth of candle exports in 2022, accounting for 38% of the total candle exports in terms of value (Eurostat). Following Poland, the Netherlands (€246 million) and Germany (€205 million) secured the next positions. The EU members collectively imported candles valued at €2,331 million in 2022, marking a 32% increase from 2021. Nearly three-quarters of this import originated from other EU members (74%, i.e., €1,729 million). Germany led the EU in candle imports, with €609 million, making up 26% of the total. China, the UK, and Vietnam were the primary sources of candle imports from outside the EU.

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SHUTTERSTOCK

POLAND TOP EXPORTER OF CANDLES IN THE EU

IN REVIEW

News BUSINESS

Nobina increases its green fleet with 55 Solaris electric buses Nobina, a leading public transport operator in Sweden, is continuing to invest in sustainable mobility. Solaris has received an order from the company’s Stockholm branch for 55 three-axle Urbino 15 LE electric buses. The vehicles will be homologized in class II and will carry passengers in the suburban areas of the Swedish capital. Deliveries of the vehicles are scheduled for 2024. “We are delighted that we can strengthen Solaris’ position in the Swedish intercity segment thanks to our cooperation with Nobina. This contract is also important to us because it is implementing zero-emission solutions in suburban transport, which is key for the global transformation of transport. We are proud of the trust and responsibility that has been placed in us. Urbino 15 LE electric is a great product. We are very pleased that our buses will provide passengers with comfort on suburban

routes while minimizing the impact on the climate,” said Javier Iriarte, CEO of Solaris Bus & Coach.

RETAIL

Sales in small stores grows 10.5% y/y in September In September of this year, the total sales value in small-format stores increased by approximately 10.5% year-on-year, and the number of transactions rose by 2.5%, according to data from the Polish Chamber of Commerce (PIH) and the Market Monitoring Center (CMR). The growth in transactions was largely attributed to the weather, with high temperatures encouraging outdoor activities and more frequent purchases of ice cream and beverages. Despite slightly smaller purchases compared to September 2022, the average receipt value increased by almost 8%. The month saw significant increases in the sale of impulse and family ice cream packages, functional beverages, isotonic drinks, and other items, while vodka sales declined. Nota-

bly, butter sales increased by 10% due to a substantial drop in prices.

BUSINESS

Grupa Azoty completes investment for PLN 77 mln, part of New Energy Concept strategy In a project valued at PLN 77 million, a new oxygen compressor has been installed at the Ammonia Department of the Azoty Group in Kędzierzyn. This investment, part of the New Energy Concept in the Azoty ZAK Group, contributes to improving process safety and employee well-being. The key task involved replacing old steam turbinedriven oxygen compressors with new electrically powered ones, housed separately for enhanced safety and production continuity. The comprehensive project scope included hall construction, pipeline installation, instrumentation setup, and integration with existing systems. This investment aligns with the New Energy Concept, utilizing heat from ammonia production to generate energy.

BUSINESS QUOTE:

“To be blunt, I would prefer that politicians not interfere in the economy at all. I have 40 years of business experience, starting in 1978, still under communism, and I have never really encountered any respect from politicians for business.” Zbigniew Jakubas Head of the Multico Group and one of the richest Poles, said he did not expect any changes in the business environment after the elections. He expressed concern that, if fulfilled, the election promises will lead to massive handouts, government debt, and inflation.

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Construction and assembly manufacturing grows 11.5% y/y in September In September 2023, construction and assembly production increased by 11.5% y/y and rose by 11.4% compared to the previous month, according to the Central Statistical Office. Analysts surveyed by PAP Business had anticipated a y/y growth of 6.0% and a month-on-month increase of 7.1% in construction and assembly production.

BUSINESS

US Army signs $1.5 bln deal with 9 ammunition producers, including Polish NitoChem The U.S. Army has signed contracts worth $1.5 billion with nine companies, including Nitro-Chem in Bydgoszcz, for

IN REVIEW increased production of 155mm artillery ammunition destined for Ukraine. Bydgoszcz-based Nitro-Chem, part of the Polish Armaments Group, is a major global explosives manufacturer. The deal involves supplying ammunition to the Ukrainian Armed Forces, with trotyl being a key component, supplied by Nitro-Chem. The company aims to expand internationally, targeting markets in Bulgaria, Spain, France, Sweden, Portugal, Finland, Scandinavian countries, and Asia. The contract ensures financial gains, job security, and enhances Nitro-Chem’s position in the challenging global ammunition market.

HIGHLY-SKILLED EMPLOYED PEOPLE, 2022

(%of people employed aged 25-64, by NUTS 2 regions) EU – 44.2 >_ 57.0 48.5 – < 57.0 42.5 – < 48.5 34.0 – < 42.4 29.5 – < 34.0 < 29.5 Data not available

ENERGY

Wholesale energy sales up by 1.1% y/y in Q3 In the third quarter of 2023, electricity turnover on the Polish Power Exchange (TGE) increased by 1.1% y/y, reaching 36,008,257 MWh. However, the futures market saw a 28% y/y decrease to 20,383,692 MWh, while the spot market experienced a 114% increase to 15,624,565 MWh. In the natural gas market, transactions for the third quarter amounted to 27,225,216 MWh, marking a 9.0% y/y growth. In the futures market, transactions reached 24,410,435 MWh, a 12.1% increase, while the spot market recorded 2,814,781 MWh, reflecting a 12.2% decrease. The report provides insights into the dynamics of electricity and natural gas trading on the TGE.

ENERGY

MAP THIS PAGE SHUTTERSTOCK

Coal share in energy mix drops to 49% in September In September, the share of coal in electricity production decreased year-on-year to 49.06% from 51.27% in September 2022, according to data from PSE. Power plants based on brown coal provided 22.23% of total production in August, compared to 28.72% in September 2022. Gas-powered plants contributed 4.38%, up from 3.68% last year. Wind power supplied 9.41%, an increase from 8.08% in September 2022. Hydropower contributed 1.69%,

Source: Eurostat (Labour Force Survey)

compared to 1.48% the previous year. Renewable sources, excluding water and wind, accounted for 13.24% of total energy, a significant rise from 6.78% in September 2022. The data highlights a shift towards renewable energy in Poland’s electricity production.

ENERGY

Polsat and ZE PAK launch hydrogen fuel station under NESO brand Polsat Plus Group and ZE PAK Group have inaugurated the first publicly accessible hydrogen refueling station in Rybnik, Silesia — the second in Poland. Operating under the brand NESO, it can serve hydrogen-powered vehicles, including 20 NesoBus hydrogen buses produced by Polsat Plus and ZE PAK. The NESO network, standing for “Nie Emituję Spalin, Oczyszczam” (I Don’t Emit Exhaust, I Purify), is among Europe’s most advanced hydrogen refueling stations.

The Rybnik station is largely energy self-sufficient, with 19 kW solar panels and 60 kWh energy storage. This initiative reflects the green transformation of Rybnik and marks a positive shift in air quality.

DOMESTIC

Wages grow 10.3% in September, below expectations In September, the average salary in businesses with over 9 employees rose by 10.3% annually, reaching PLN 7,379.88. Employment remained unchanged from the previous year, as reported by the Central Statistical Office (GUS). Monthly, the average wage increased by 0.1%, while employment decreased by 0.1% to 6.496 million posts. The market consensus anticipated a 10.8% yearly wage growth and zero employment growth. Despite a slowdown in some manufacturing sectors, demand for labor remains high in services, and the mini-

>>> WBJ.PL

IN REVIEW

News

However, the bill proposes restrictions on the list of persons entitled to benefit from credit holidays. According to the bill, credit holidays will be available for people with loans under PLN 400,000. It will also be possible for loans between PLN 400,000 and PLN 800,000, but only for borrowers whose ratio of expenses related to servicing the monthly principal and interest installment of the loan to the average monthly income of their household exceeds 50%. Buda said that approximately 1 million people could benefit from the program.

PESA to deliver 62 electric trains to Romania worth PLN 3 bln Polish rolling stock manufacturer, Pesa Bydgoszcz, secured its largest contract to date, winning a record-breaking PLN 3 billion tender to supply Romania with 62 electric multiple units (EMUs) for regional railways in Bucharest, Cluj, and Iasi. Pesa’s offer encompasses both vehicle delivery and a 15-year maintenance service, extendable for an additional 15 years, including the construction of three maintenance centers for all 62 EMUs. This milestone aligns with Pesa’s 2030+ strategy for international expansion. The company is also actively participating in Romanian city tenders for tram purchases, contributing to its strategic development plan. Pesa has been present in Romania since 2012 and recently delivered trams to Craiova and Iasi. The final decision on the Alstom appeal against Pesa’s selection in a previous tender for 29 EMUs is expected later this year.

mum wage increase is putting pressure on lower-income earners’ wages. The Post Bank anticipates a return to higher wage growth dynamics in the coming months, linking it to a slowdown in inflation. ING specialists note weakening labor demand in certain manufacturing sectors but highlight sustained demand in services.

ECONOMY

WSE will pay PLN 2.7 mln in inflation benefits after a dispute with unions The Warsaw Stock Exchange has announced the signing of an agreement that resolves the collective dispute with

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

trade unions. Under this agreement, the stock exchange will disburse PLN 2.7 million gross as inflation benefits to its employees. The benefit for each employee will vary based on their annual gross basic salary, resulting in approximately 5.7% of their salary. These inflation benefits will be distributed on October 18.

BANKING

Government approves credit holiday extension for 2024 The government has adopted a bill extending the loan holidays into 2024, the head of the Ministry of Development and Technology, Waldemar Buda, said.

DOMESTIC

General government deficit grows to PLN 192 bln in 2023 - Eurostat Poland’s general government deficit will increase to PLN 192.109 billion in 2023 from PLN 112.833 billion in 2022, according to Eurostat. The initial April notification projected a deficit of PLN 162.99 billion. The subsector of central government institutions is expected to have a deficit of PLN 158.43 billion in 2023 compared to PLN 98.863 billion in 2022. The subsector of local government institutions is projected to have a deficit of PLN 18.826 billion compared to the previous PLN 12.989 billion. The subsector of social security funds is anticipated to have a deficit of PLN 14.853 billion.

DOMESTIC

The population of Poland at the end of September decreased by 130,000 Poland's population decreased by 130,000 at the end of September, as reported by the Central Statistical Office. At the end of September, the population amounted to 36.68 million. The Central Statistical Office reported that the actual loss rate over the three quarters was about 0.24%, meaning that for every 10,000, Poland’s population decreased by 24 people compared to 26 people a year ago.

THIS PAGE UNSPLASH, OPPOSITE PAGE SHUTTERSTOCK

BUSINESS

IN REVIEW

News in Numbers

Entertainment market up

6.6%

Poland’s entertainment and media market growth projection in 2023 (PwC)

Job market still going strong Salaries increase PLN 6,362.90 79.7% average salary in 2022, an increase of 12.0% y/y

Average monthly salary increase over 10 years

(GUS)

…but fewer vacancies

17.8%

Promising GDP growth forecasts 0.1% 2023 3.3% 2024/25 (EY)

decrease in number of job offers in September (Grant Thorton/Element)

Inflation tamed

8.4%

y/y drop in core inflation in September from 10% in August (National Bank of Poland)

0.5% 2023 3% 2024 (Bank Gospodarstwa Krajowego)

High spending

PLN 35 bln Budget deficit after September (Ministry of Finance)

Consumers remain cautious

55.1%

39.5%

67%

of Poles keep their savings in cash

of Poles keep savings in bank deposits

of Poles fear the return of high inflation

(Association of Financial Enterprises in Poland – ZPF)

(UCE Research)

WBJ.PL

OPINION

MINIMAL WAGE – UP AGAIN AND BITING The minimum wage in Poland will see a significant increase in 2024, making it the highest in comparison to the average salary in the European Union, at 55% of the average wage. This change marks a phenomenon of global significance, representing an experiment that may prove challenging for some small entrepreneurs and a triumph of economic statism.

n Poland, there has been a dynamic increase in the minimum wage in recent years. From 2015 to 2023, the minimum wage rose by PLN 1850, representing a 105% increase from PLN 1750 in 2015 to PLN 3600 in 2023. Over the same period, the average salary in the national economy increased by just over half of this minimum wage increase. Starting in January 2024, the minimum wage for employment contracts will be PLN 4242, further increasing to PLN 4300 gross in July. This adjustment will benefit 3.6 million full-time employees, which accounts for 27% of the total workforce of 13.5 million individuals. For comparison, three years ago, this number was 1.5 million people.

POLAND COMPARED TO THE EU AND THE US

In Poland, as many as 27% of people earn the minimum wage, representing a striking contrast with the United States, where the level is approximately 2%, and Europe, where it's about 6% to 7%. The rapid year-to-year increase in the minimum wage over many years may pose significant challenges to the labor market because companies, especially small and medium-sized ones, may struggle to manage the wage pressure from all employees who compare their earnings with the minimum wage.

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

This situation implies that individuals with lower competencies or those who have not pursued additional education, taken courses, or obtained specialized qualifications are now earning almost as much as lower-level management staff. There is a flattening of wages in an increasing number of professions. As the minimum wage continues to rise, people with higher qualifications want to earn more, leading to additional wage demands. The main factor that may restrain these demands is the realization that they could risk losing their jobs if their companies go bankrupt. If more businesses face bankruptcy and the number of unemployed individuals begins to rise, a significant portion of those affected will likely be individuals with fewer qualifications. Traditionally, the rapid growth of the minimum wage was expected to bring about a different distribution of profits: less for company owners and more for their employees. On the other hand, proponents of the minimum wage, especially from the government's perspective, argue that it can enhance work efficiency within companies. While this claim may

SHUTTERSTOCK

BY SERGIUSZ PROKURAT

Relying predominantly on consumption-driven growth, which is facilitated by higher wages, is not a stable long-term strategy. It can also trigger inflation when wages increase at a faster rate than productivity, creating a self-perpetuating cycle of wage and price hikes. When productivity outpaces wage growth, it's entirely justified for workers to seek higher wages, as a reward for their efforts. But for productivity to flourish, businesses must make investments. In Poland, entrepreneurs have been hesitant to invest for several years now. This has led to rising prices without a corresponding increase in the availability of more affordable goods and services. What's more, the situation is expected to worsen as export orders decline, making the economy less competitive.

AN EVEN LESS COMPETITIVE ECONOMY

hold some truth, measuring its impact can be challenging. If companies cannot achieve savings through improved efficiency and are forced to increase wages due to labor market conditions, this may ultimately lead to higher prices for customers. This outcome can be seen as a setback in terms of improving work efficiency. Ultimately, the impact of minimum wage increases depends on various factors and contexts. It's important to note that governments also have an incentive to raise the minimum wage because it leads to higher revenues for the budget. Each minimum wage increase results in increased contributions to the Social Insurance Institution (ZUS) and related contributions, such as those for night work, the calculation basis for sickness and maternity benefits, and higher income tax payments.

THE VORACIOUSNESS OF MINIMAL SALARY INCREASES

The seemingly enticing notion of increasing the minimum wage is a topic that resonates with many workers, experts, and politicians. The government, for instance, sees it as a way to stimulate domestic demand. However, the challenge lies in the fact that genuine prosperity does not emerge from political mandates for higher wages; it results from sustainable economic development.

The trajectory of increasing the minimum wage in Poland resembles a paradox where, with each step taken (wage increases), the ultimate goal of real income growth seems to move further away. Instead of pursuing real actions aimed at fostering true prosperity, such as promoting professional activity, implementing a thoughtful migration policy, encouraging investments and innovations in the private sector, enacting stable and well-considered legislation, enhancing the education system, and ensuring efficient courts and independent institutions, the simple approach of mandated minimum wage increases is employed. This approach creates an illusion of wealth growth for many. In a worst-case scenario, elevating the minimum wage for work could inflate labor costs to a point where some employers may decide to curtail their workforce, potentially impacting those with lower qualifications and increasing unemployment. While Poland hasn't reached that point yet, increasing the minimum wage for work could have a general effect on the competitiveness of companies, including their international competitiveness, particularly in labor-intensive industries. This may, in turn, hinder the gradual accumulation of wealth for all citizens. Politicians in Poland who unquestioningly argue that the country should cease being a source of cheap labor risk pushing Poland in precisely the opposite direction with their policy of continually raising the minimum wage.

WBJ.PL

CEE, SEE & summit Baltics summit in London CEE & SEE in London in association with EBRD (6-7 February, 2024, London) in association with EBRD (6-7 February, 2024, London)

Spea kers Dr Marcin Piatkowski Lead Economist at World Bank, Professor at Kozminski University, author of "Europe's Growth Champion: Insights from the Economic Rise of Poland

David Inskip EMEA Head of Research at CBRE Investment Management

Economic outlook for 2024 (keynote, by David Inskip, EMEA Head of Research, CBRE IM)

ESG and decarbonisation: How do investors find value out of this high investment?

Founders’ round table: “Dealflow and diversification for sustainable business”

Green lending: Including impact principles in underwriting and pricing

Investment landscape in CEE RE market: Balancing between opportunities and challenges

Logistics: Fundamentally strong or challenged by pricing adjustment?

Fireside chat with Dr Marcin Piatkowski, Lead Economist of World Bank, Author of Poland: Europe’s Growth Champion

PRS in core CEE: Reaching balance in maturity, supply and pricing?

Agenda

SEE and Baltics markets: What do niche markets have to offer? Urban regeneration: Cities of opportunities

Future Offices: What's the new recipe for success? AI and digitision in RE: When and how is it going to change the game for real estate?

Founders De bate Arvi A. I. Luoma

Hadley Dean

Omar Koleilat

Co-Founder & CEO, Blackbrook Capital

Founder & CEOM, DC2

Co-FounderCrestyl, Group

Dorota LatkowskaDiniejko

Eric Assimakopoulos

Peter Noack

Co-Founder & Managing Director, REINO Partners

MD & Founding Partner Revetas, Capital Advisors LLP

Co-Founder & Managing Director, Zeitgeist Asset Management

www.entralon.club/ceelondon Lead Partner

Sponsor

Media Partner WORLD WOMEN IN REAL ESTATE

LOKALE IMMOBILIA

OFFICE

Diuna office scheme in Warsaw’s Służewiec completes revitalization The Diuna office complex in Warsaw’s Służewiec district has undergone a comprehensive modernization, transforming its courtyard from a concrete car park into a green park with 50 trees and 96 species of shrubs. The revitalization includes enhanced building systems, energy-efficient measures, and eco-friendly solutions, resulting in an expected 31% reduction in carbon dioxide emissions. The project eliminates the urban heat island effect, creating a sustainable, nature-friendly space with amenities like a misting system, educational pavilion, and cycling infrastructure. Diuna’s commercialization has increased to nearly 75%, demonstrating the success of the revitalization strategy in attracting and retaining tenants.

REAL ESTATE INDUSTRY NEWS

Find more daily at wbj.pl/real-estate

PRESS MATERIAL (2)

(covering)

Hospitality, Investment Market,Logistics , Mixed-use, Office, Residential, Retail

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LOKALE IMMOBILIA NEWS INVESTMENT

Real estate investor activity expected to pick up in H2 2024

Apartment prices in Kraków grow 28% in a year Real estate prices in Kraków have been growing at a record pace compared to other cities. In just one year, prices have surged by 28%, bringing them closer to the prices in Poland’s capital, Warsaw, where the average price per square meter is around PLN 17,000. Experts from RynekPierwotny.pl and GetHome.pl anticipate that real estate prices will continue to rise during the autumn. They attribute this price growth to the government’s low-interest mortgage program and the interest rate cuts made by the Monetary Policy Council. According to data from GetHome.pl, prices in the secondary market have increased in all cities. In September 2022, the average rate per square meter was PLN 8,986, while in September, it had already reached PLN 10,000.

INVESTMENT

RESIDENTIAL Cyfrowy Polsat buys 50% stake in The average value Port Praski from of a “safe loan” for housing is almost HB Reavis Pantanomo Limited, a subPLN 400,000 sidiary of Cyfrowy Polsat,

acquired a 50% stake in Port Praski City II and Port Praski Medical Center from HB Reavis Holding CZ for €21.09 million, subject to price adjustment mechanisms. Additionally, agreements were reached confirming the expiration of the joint venture agreement between PPCII, PPMC, Pantanomo, and HBR, which was initially signed on July 21, 2022. The decision to repurchase shares and terminate the joint venture agreement is attributed to changes in HBR’s strategy, reflecting a reduction in development activities in Poland. Cyfrowy Polsat and Polkomtel form an integrated media-telecommunications group controlled by Zygmunt Solorz, listed on the GPW since 2008.

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

The average value of a mortgage under a government program with a fixed interest rate of 2% is PLN 400,000. The total value of contracts concluded under the program is PLN 9.7 billion. Subsidized family housing loan installments can be used for 10 years, and the maximum loan amount is PLN 500,000. In the case of a household jointly managed by spouses or when the household includes at least one child, the maximum amount can go up to PLN 600,000.

PHOTOGRAPHS THIS PAGE BOTTOM PRESS MATERIAL, TOP UNSPLASH

RESIDENTIAL

Investors anticipate increased investment activity in the commercial real estate market in the second half of 2024, driven by a decline in inflation and a reduction in interest rates in the Eurozone, according to a statement by JLL. Some institutional investment funds express less optimism, facing lower inflows of new funds, impacting their appetite for new purchases. Opportunistic and value-add investors remain active, seeking pricing opportunities. The Private rental sector (PRS) is experiencing a slowdown due to NBP interest rate hikes, leading to increased financing costs. Family offices and high-net-worth individuals show interest in diverse asset classes, with varying risk profiles. Central European investors continue to dominate interest in the Polish market, but Western European entities are also exploring opportunities, particularly in the office and logistics sectors. The residential sector remains attractive, but high financing costs are a hurdle.

LOKALE IMMOBILIA INTERVIEW

TWO QUESTIONS FOR SVETLANA FEDOSOVA In a recent conversation with Svetlana Fedosova, founder of Entralon Club and a Board Advisor of Entralon, the Warsaw Business Journal discussed recent announcements by the Advisory Board of Entralon regarding the upcoming CEE Summit.

In conjunction with our partnership with Entralon, the Warsaw Business Journal is conducting exclusive interviews with distinguished real estate professionals to exchange valuable insights and explore investment strategies that pave the way for a more prosperous future. www.entralon.club

What was the Advisory Board’s recent commitment to promote the impact of women real estate professionals in the upcoming CEE Summit? The Advisory Board has announced its commitment to ensure a 50/50 gender balance among speakers at the forthcoming CEE Summit, presented by Entralon Club in collaboration with EBRD, scheduled for February 6-7, 2024.

What makes this commitment significant and exciting for you and other female real estate professionals attending the summit? Can you share a sneak peek of some of the speakers who will be speaking at the event? What is inspiring and particularly exciting for me personally, for my team, and hopefully our clients, too, is that we are focusing on a practical and useful component. Yes, we can gather women together and talk about the realities of being a woman in a male-dominated industry. Or we can endlessly talk about the barriers that women face throughout the world when trying to advance their careers. But I see little value in this as we can’t change our society and social norms immediately. So, what can we do differently? What can we do right now? We can provide our peers with the opportunity to learn from the best international executive coaches and equip female real estate professionals with new tools to advance their careers and expand their influence. This is why we are including an internationally recognized coach and TEDx speaker with 10 million views on YouTube. The aim is to inspire our colleagues and peers to take control of their careers by finding their voices and improving their self-branding. An interactive session is on the agenda. By the end of this, we hope everyone will take away a broader skill set on self-presentation, public speaking and, crafting an impactful elevator pitch—a 30-second “audio business card.” It will be a new experience, a new skill, and a new tool in their toolkit!We shall see how this will be taken by our female attendees of the summit and based on the feedback we will develop strategy for our next events. I would be thrilled if we could make it a tradition to incorporate such inspiring and practical sessions at all our events!

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LOKALE IMMOBILIA EVENT REPORT

EXPO REAL 2023: INSIGHTS FROM POLAND'S REAL ESTATE CHALLENGES AND OPPORTUNITIES POLAND'S REPRESENTATION AT EXPO REAL IN MUNICH UNVEILS THE RESILIENCE OF ITS REAL ESTATE MARKET AMIDST ADVERSITY, SHOWCASING ATTRACTIVE INVESTMENT PROSPECTS AND A STRONG COMMITMENT TO ESG PRINCIPLES. BY MORTEN LINDHOLM

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

xpo Real, held annually in Munich, Germany, is renowned as one of Europe's premier real estate expos. This event serves as a prominent platform for cities, regions, real estate firms, and advisors to showcase their real estate projects, network with industry professionals, and discuss key trends and challenges within the real estate sector. In the context of Poland's involvement in Expo Real, below is a summary of the key subjects and highlights from the event: •A Challenging Investment Year: The Expo Real in Munich in early October featured discussions regarding the challenges faced by the Polish real estate market. It was noted that Poland had experienced a tough year for real estate investment, marked by high interest rates and geopolitical uncertainties. These factors had limited the appetite for risk in the market. (However it was worth noting that although it has been a tough year in Poland, which saw a 50% decline in investments, it is a much better scenario compared to Western European countries like Germany where the decline has been closer to 90%.) •A ttractive Opportunities in Polish Cities and Regions: Despite the challenges, Poland's major cities and regions continued to offer attractive investment opportunities for international investors. The country's urban centers and regions presented various schemes and projects with the potential to attract foreign investment. •E SG (Environmental, Social, and Governance) Focus: Expo Real also emphasized the growing importance of ESG principles in the real estate sector. Developers, investors, and banks were highlighted as having a joint responsibility to address ESG issues in their projects and operations. Polish companies demonstrated their commitment to these ESG principles, signalling a strong focus on sustainability and responsible business practices. Expo Real serves as a valuable platform for industry players to assess the current state of the real estate market, exchange ideas, and explore new investment opportunities. The topics discussed at the event reflect the broader trends and challenges in the Polish real estate sector, as well as the industry's increasing focus on sustainability and responsible investment.

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PHOTOGRAPHS BY MORTEN LINDHOLM

CEEQA 2024 AWARDS: A FRESH OUTLOOK ON REAL ESTATE founder and chairman Richard Hallward shares insights EXCELLENCE CEEQA into the revamped CEEQA 2024 Awards program, including new award categories and a memorable 20th-anniversary gala featuring Atomic Kitten.

PHOTOGRAPH COURTESY OF CEEQA

Apart from these adjustments, the market can expect more of the tried-and-tested formula that has been the hallmark of the CEEQA awards in the 2024 edition. We’re confident that it will maintain its position as the premier industry recognition in the sector.

What new ideas can people expect in the CEEQA 2024 Awards program? It’s no secret the investment market is very static at the moment and we’re probably looking at an equally slow 2024. However, the past few years have seen slight shifts in the balance of asset classes in the sector, particularly the rise of the private rented sector (PRS) and mixed-use developments. We are incorporating these changes into our award categories for the 2024 campaign. The first change is the introduction of a ‘Mixed Use Development’ category. When CEEQA began 20 years ago, we had such a category, but it was put on hold due to a lack of entrants. The entries we received back then were essentially office or retail projects with one or two minor components. However, this situation has evolved in recent years, with many proper, ambitious, and game-changing mixed-use projects coming onto the market in most of the major cities of the CEE and SEE regional sectors. So, this is certainly a good moment to bring this category back. The other significant change involves adjusting our longstanding 'Hotel, Leisure & Residential' category. We are splitting it into two separate categories: ‘Residential Development,’ and ‘Hotel & Leisure Development of the Year.’ The surge in residential investment has been a prominent feature of the market over the past few years, both in our sector and on the international stage, notably due to the impact of PRS.

It’s CEEQA’s 20th anniversary CEEQA Gala next year, and we understand you’ve already booked the band Atomic Kitten. How do you think they will go appeal to the gala guests, and are there any other plans already in place people can look forward to? We’re quite excited to have Atomic Kitten perform at CEEQA24. They’re one of the UK’s top bands of the recent past, known for at least 10 international hit songs that our guests will certainly recognize. They are already confirmed for the event and are looking forward to it. In fact, they're also planning a concert tour of Poland in 2024, so our audience is incredibly fortunate to have the opportunity to see them up close in an intimate club-style setting, just as we've had with other renowned artists like Macy Gray, Morcheeba, Bonnie Tyler, and M People in recent years. Let's not forget the unforgettable performances by Kim Wilde, Bananarama, and Sister Sledge in years gone by. We occasionally receive questions about the importance of having a "major band" concert as part of the CEEQA experience. The short answer is you bet. We do like to keep a few surprises up our sleeve, but rest assured, all the bars, features, and activities that are essential to the CEEQA Gala's reputation and overall experience will be there. Our visual design concept is "time," and we'll be incorporating it into everything we present in creative ways. It's definitely an event you'll want to invite your most valued clients and client prospects to, that’s for sure.

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SHUTTERSTOCK (2)

Advisory & Law Firms

In the face of economic turbulence, changing legislation and geopolitical uncertainties, businesses in Poland, whether large or small, are grappling with the intricacies of the Polish New Deal, Slim VAT, and E-Invoicing. This shifting landscape means companies are increasingly searching for sound business and tax advice. In response to this need, large advisory companies have been shifting focus towards advisory services, and away from auditing, which carries significantly more legal exposure. This shift is why another trend has emerged: middle-of-the-pack auditors have been gaining ground, coming ever so close to the big four. Whether looking for business insights, tax optimization, legal audit, or any other assistance, trust is crucial, and a recommendation from a reliable source goes a long way, which is why we present you with these two lists: one of legal firms and one of advisory and auditing companies. All companies listed here are well-established in the Polish market and possess the legal and business acumen many organizations require. We looked into their size, revenues, and scope, as well as how satisfied clients have been with their services. Here are our recommendations.

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WBJ Business Guide Advisory & Law Firms (1-19)

Name of advisory firm

Advicero Nexia

TOP

Alto Tax

Arena Tax

ASB Tax

ATA TAX

BDO

ADVISORY FIRMS

BTTP

Crido Taxand

Deloitte

Domański Zakrzewski Palinka

Advisory and auditing firms have had a lot of work helping companies navigate the challenging economic landscape, amidst strong inflationary pressures, high energy costs and subdued domestic demand. The growth is evidenced by the fact that thirty-two of the forty companies on our list increased their revenue from advisory services from 2021 to 2022. Interestingly, as many as 25% of the companies reported double-digit growth over that period, which went a long way towards helping mid-sized firms to close the gap with the “big four.” Additionally, audit services have become even more arduous in uncertain times, due to the increased legal risk and exposure, making tax and business consulting all the more attractive by contrast.

EY Polska Gekko Taxens Doradztwo Podatkowe Grant Thornton Grupa Instytutu Studiów Podatkowych Modzelewski i Wspólnicy Grupa Kancelarii Prawnych Skarbiec

Polska

Grupa PKF GWW Ladziński, Cmoch i Wspólnicy HWW Hewelt Wojnowski i Wspólnicy Kancelaria Ożóg Tomczykowski

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

Emp (excl loyees inv uding o adminlved in au istrat dit ser vices ion)

Audit licen ors with ses Polis h

Reve 2022 nue from (thou t sand ax audit PLN)

Num (annuber of tax al av erageadvisors )

Reve nue 2 021 ( mln P LN)

Reve nue 2 022 ( mln P LN) 12.6

10.2

–

15.2

13.

–

10.2

8.1

–

5.4

–

3.6

3.2

–

41,864.20

146

6.1

5.1

–

74.9

63.1

–

347.2

301.6

199

81,723.00

617

9.1

7.6

–

373

306.5

135

117,834.12

929

7.4

4.6

–

24.8

19.4

–

27.5

24.7

–

5.9

–

5.4

18,116.00

152

28.3

23.1

–

4.5

1.4

–

21.3

16.1

–

Sources: Rzeczpospolita, Dziennik Gazeta Prawna WBJ.PL

WBJ Business Guide Advisory & Law Firms (20-40)

Name of advisory firm

Kancelaria Podatkowa Skłodowscy KNDP Kolibski, Nikończyk, Dec i Partnerzy KPMG

Expert Opinion

ESG Challenges for the Financial Sector The financial sector faces unique challenges related to integrating the Environmental, Social, and Governance (ESG) framework into its operations. Financial institutions have an obligation to assess to what extent the projects they finance meet the ESG criteria, as well as the level of maturity in strategic ESG management. Developing a unified approach to reporting and access to credible sources of qualitative data has become an urgent market need. In cooperation with BIK (Credit Information Bureau), we are working on developing a sector-specific tool for collecting and managing data related to sustainable finance. This tool will be used by both banks and companies seeking green financing. The platform under development has the potential to be a unique solution in Poland and Europe, setting standards for the banking sector and other market stakeholders. The platform will establish data exchange and reporting standards, greatly aiding banks in complying with regulatory requirements. Additionally, its goal will be to monitor and aggregate indicators related to the composition of banks' portfolios in the context of sustainable development, preparing financial institutions for the obligations arising from current and future ESG guidelines. The platform will use data from 2022, with progressive updates in subsequent years. Irena Pichola Partner, Leader of Deloitte's Sustainable Development team in Poland and Central Europe

LTCA Zarzycki Niebudek Kubicz Mariański Group Kancelaria Prawno-Podatkowa MDDP Michalik Dłuska Dziedzic i Partnerzy Paczuski Taudul Doradcy Podatkowi PwC Rödl & Partner RSM POLAND AUDYT Russell Bedford Poland Rymarz, Zdort, Maruta, Wachta, Gasiński, Her i Wspólnicy Sendero Spółka doradztwa podatkowego Sołtysiński Kawecki & Szlęzak Sowisło Topolewski Kancelaria Adwokatów i Radców Prawnych SSW Pragmatic Solutions Taxeo Komorniczak i Wspólnicy Thedy & Partners TLA Smoczyński Koniewski Doradztwo Podatkowe TPA Poland UHY ECA

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

Audit licen ors with ses Polis h

Emp (excl loyees inv uding o adminlved in au istrat dit ser vices ion)

–

11.1

11.3

–

262.3

234.9

139

105,180.24

108

729

5.7

4.4

–

5.4

5.9

–

75.6

65.2

12,495.10

14.2

12.9

–

285.2

255.2

129

135,570.00

111

637

33.4

29.4

2,350.01

9.5

–

12.9

12.1

–

11.3

10.4

–

3.7

3.9

–

18.8

19.2

37,006.00

208

3.3

2.9

–

10.1

9.2

–

11.7

14.4

–

12.2

10.4

–

4.2

3.9

–

34.4

29.6

–

3.1

2.8

12,817.17

120

Reve audit nue from 2022 ta (PLN x )

Reve nue 2 021 ( mln P LN)

Num averaber of tax ge) advis ors (a nnua l

3.8

Reve nue 2 022 ( mln P LN), 4

Sources: Rzeczpospolita, Dziennik Gazeta Prawna WBJ.PL

WBJ Business Guide Advisory & Law Firms (1-15)

TOP

30 LAW FIRMS

Despite inflationary pressures, legal services are very much in demand, as evidenced by the growth of legal firms. The legal services market in Poland clearly has room both for the largest international players, as well as medium-sized and smaller, local, and specialized law firms. Below we have selected thirty of the largest law firms in Poland, located in multiple cities and covering a variety of legal specializations. The law firms in our list are active in a wide range of commercial and corporate law, including mergers and acquisitions and intellectual property law, as well as industry-specific branches of the law, including energy, real estate, banking, and finance.

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

Name of law firm

City

Allen & Overy, A. Pędzich

Warsaw

Baker McKenzie Krzyżowski i Wspólnicy

Warsaw

Bird & Bird Szepietowski i Wspólnicy

Warsaw

BSJP bnt Brockhuis Jurczak Prusak Sroka Nilsson Zamorska

Warsaw

Clifford Chance, Janicka, Krużewski, Namiotkiewicz i Wspólnicy

Warsaw

CMS Cameron McKenna Nabarro Olswang Pośniak i Bejm

Poznań, Warsaw

Deloitte Legal, Ostrowski, Gizicki i Wspólnicy

Gdańsk, Katowice, Kraków, Łódź, Poznań, Rzeszów, Szczecin, Warsaw, Wrocław

Dentons Europe Dąbrowski i Wspólnicy

Warsaw

DLA Piper Giziński Kycia

Warsaw

Domański Zakrzewski Palinka

Poznań, Warsaw, Wrocław

DWF Poland Jamka

Warsaw

Filipiak Babicz Legal

Kraków, Poznań, Warszawa

Gałczyński Osowiecki Banasik

Warsaw

Gessel, Koziorowski

Warsaw

JDP Drapała & Partners

Warsaw

• • •

151

• • •

•

111

• • • •

211

• • • •

106

•

240

• • • •

• •

193

•

129

•

• •

•

• •

•

• •

•

• • •

• •

•

• •

•

Preve nting mono polis tic pr Priva actic es te eq uity & ventu re ca pital Real estat e Dispu te res olutio n Tax la w Tech Telecnology, m omm e unica dia, tions White (TMT -colla ) r crim e

Empl oyme nt law Ener gy an d nat ural r esou Envir rces onme ntal p rotec tion/ plann Healt ing hcare & nat ural s cienc Insol es venc y and restr uctur Insur in g ance

Num ber o f law yers Adm inistr ative and p ublic Bank law ing a nd fin ance Capit al ma rkets Comm ercia l law Cons truct ion a nd in frast Corp ructu ortat re e law

Intell ectua l prop erty Merg ers a nd ac quisit ions Labo r law

• • • •

• •

• • •

•

• •

•

• •

•

• •

• • •

• •

•

• • •

•

Sources: Rzeczpospolita, Dziennik Gazeta Prawna

WBJ.PL

WBJ Business Guide Advisory & Law Firms (16-30)

Name of law firm

City

Jedliński, Bierecki i Wspólnicy

Gdynia

Kochański & Partners

Kraków, Warsaw

KPMG Law Bajno Stopyra

Warsaw

Kubas Kos Gałkowski – Adwokaci

Kraków, Warszawa

Olesiński i Wspólnicy

Gliwice, Kraków, Warsaw, Wrocław

PwC Legal Żelaźnicki

Warsaw

Rödl Kancelaria prawna (grupa Rödl & Partner)

Warsaw

Rymarz, Zdort, Maruta, Wachta, Gasiński, Her i Wspólnicy

Warsaw

SMM Legal Maciak Mataczyński Czech

Warsaw

Sobota Jachira

Wrocław

Sołtysiński Kawecki & Szlęzak

Katowice, Poznań, Warsaw, Wrocław

Sowisło Topolewski

Poznań

SSW Pragmatic Solutions Spaczyński, Szczepaniak, Okoń

Warsaw, Kraków, Poznań

T. Studnicki, K. Płeszka, Z. Ćwiąkalski, J. Górski (''SPCG'')

Kraków, Katowice, Warszawa, Wrocław

WKB Wierciński, Kwieciński, Baehr

Warsaw, Poznań

Expert Opinion

The Withholding Tax Regime and Its Challenges The term “withholding tax” (WHT) refers to flat-rate income taxes (from individuals and legal entities) collected by payers who reside, have their registered offices, or so-called foreign establishments in the country where the income is generated. In the case of Poland, withholding tax is collected by payers who reside, have their registered offices, or foreign establishments in Poland. This tax is levied on specific types of income, including dividends, interest, and licensing fees. One of the most substantial recent changes has been the introduction of the pay and refund mechanism, which had been previously postponed multiple times through regulations by the Minister of Finance. With the implementation of the pay and refund mechanism, payers lost the ability to apply preferential taxation rules when making cross-border payments exceeding PLN 2 million in the taxpayer’s tax year. This means that standard withholding tax rates (19% for dividends, 20% for licensing fees, and interest) must be applied by payers once the statutory threshold is exceeded. Analyzing documents and confirming the conditions for applying reduced withholding tax rates or exemptions from withholding tax are just some of the areas that require attention when complying with new obligations or preparing for them. Magdalena Zalech Partner in the International Taxes Team of the Tax Advisory Department

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

130

•

137

171

•

• •

•

125

• •

•

108

• • •

• •

•

• •

•

• •

•

• •

•

• •

•

• •

•

• • •

•

• •

•

• •

•

133

•

• •

•

• •

•

108

WBJ.PL

•

• •

• • •

• •

•

Sources: Rzeczpospolita, Dziennik Gazeta Prawna

Preve nting mono polis tic pr Priva actic es te eq uity & ventu re ca pital Real estat e Dispu te res olutio n Tax la w Tech Telecnology, m omm e unica dia, tions White (TMT -colla ) r crim e

Intell ectua l prop erty Merg ers a nd ac quisit ions Labo r law

Empl oyme nt law Ener gy an d nat ural r esou Envir rces onme ntal p rotec tion/ plann Healt ing hcare & nat ural s cienc Insol es venc y and restr uctur Insur in g ance

Num ber o f law yers Adm inistr ative and p ublic Bank law ing a nd fin ance Capit al ma rkets Comm ercia l law Cons truct ion a nd in frast Corp ructu ortat re e law

HR TRends

a foundation upon which companies can enhance their efficiency.

At the HR Best Practices Conference, held on October 17 at Villa Foksal in Warsaw, top experts and HR professionals convened to tackle pressing topics and discuss developing trends in human resources.

Mental health, blue collar workers, and equal opportunities Understanding neurodiversity, mental health issues, and women’s physiology tops the list of priorities occupying employees’ thoughts today. They seek to have their ideas heard, emotions understood, and family situations respected. They also expect equal treatment, regardless of their age and position in the company. Individual development and generational dialogue One thing is certain – companies that invest in the development of

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

their employees, regardless of their age or tenure, stand to gain significantly. Take for instance, onboarding programs for new employees, which helps new employees swiftly adapt to their new work environment. In today’s world, fostering positive relationships among employees of varying age groups is also incredibly important. Creating an environment where experienced individuals can introduce innovative approaches to work and provide support to younger colleagues holds immense value. Intergenerational exchange is a priceless asset for any organization and serves as

Neurodiversity During the panel discussion, representatives from various organizations, including the Razem dla Różnorodności w Biznesie Foundation, Angelini Pharma Polska, DHL Parcel Poland, and BNP Paribas Bank Polska S.A., shed light on the most critical aspects of this issue. It’s important to emphasize that many individuals are not aware of their neurodiversity or may not feel safe discussing it openly. Therefore, fostering a workplace atmosphere of openness and acceptance is crucial, allowing every employee to be their true selves without having to hide. However, for this to be successful, the entire management team must be involved. Additionally, raising awareness among recruiters is vital. Providing training and addressing the formation of stereotypes can help prevent discrimination and ensure that promising candidates are not unfairly rejected.

PHOTOGRAPHS THIS SPREAD PRESS MATERIAL

INNOVATIVE APPROACHES FOR WORKPLACE CHALLENGES

Managing blue collar workers While it might appear that there is limited room for modifications and improvements in this category best practices and experiences in human resource management can yield substantial benefits for a company. During the conference, representatives from Mleczarnia Turek, Saint-Gobain Glass, C.H. Robinson, and ANWIL S.A. revealed that embracing employee-initiated initiatives can lead to significant cost savings for the company. Changes in the daily work system, such as implementing modifications (e.g., dedicating Fridays solely to the company’s development) or introducing electronic signatures, resulted not only in improved financial outcomes but also led in time savings.

Expert View

THREE KEY STEPS FOR EFFECTIVE IMPLEMENTATION OF KSEF

Tomasz Balcerak Partner, Tax Advisor, Rödl & Partner

he National e-Invoice System (in Polish: Krajowy System e-Faktur, usually abbreviated to: KSeF) is an electronic tool opening new possibilities for businesses in issuing and sharing structured invoices. From July 1, 2024, all active VAT taxpayers in Poland are obligated to use KSeF. How can financial and accounting systems be efficiently adapted to comply with new regulations? Ongoing discussions have revolved around the challenges faced by entrepreneurs. Therefore, it’s crucial to prepare for upcoming changes to avoid potential errors and difficulties. Here are three key steps to effectively implement KSeF in your company.

STEP 1

Identify existing processes and designate people responsible for e-invoicing Before implementing KSeF, you need to understand current procedures related to invoicing at your company. Verify what information will be transmitted to KSeF. This analysis allows you to recognize all mechanisms related to invoice processing as well as the systems and people involved in this process. Ensure a clear division of duties and assign responsibilities in the company.

STEP 2

Ensure access to KSeF – choose a handling system The key to success lies in selecting the right e-invoicing system that seamlessly integrates with KSeF. Begin by checking if your current tool processes documents in XML format, in accordance with the Ministry of Finance requirements. If your existing system doesn't support structured invoices, you'll need to make the necessary modifications. Additionally, prioritize security – ensure that the software guarantees the protection of data contained in the invoices. User authentication in KSeF is mandatory, whether your company employs commercial solutions or the application provided by the Ministry of Finance. To access KSeF, authentication is required through a qualified electronic signature or a trusted profile. It's also an option to use a qualified electronic seal.

STEP 3

Plan implementation training Training employees in e-invoicing is crucial. It’s not just about understanding the invoicing process but also grasping the context and specifics of your organization. This is especially important for larger enterprises dealing with more complex transaction documentation. Employees need to be well-prepared for various scenarios, including how to handle situations where KSeF rejects an invoice.

Expert Support At Rödl & Partner, we offer comprehensive KSeF implementation solutions. Our experts will support you in both granting and rescinding permissions to use the system, as well as fulfilling obligations arising from using KSeF. We also provide implementation training, user manuals, and essential materials related to KSeF usage.

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LABOR SHORTAGE OR

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

HIDDEN UNEMPLOYMENT? Amidst inflation and less-than-satisfactory growth figures in 2023, one could expect unemployment figures to increase. Yet, Poland maintains low unemployment figures, sparking discussions as to why. Is the labor market healthy at its core, or is something masking its problems? BY SEAN REYNAUD

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FEATURE UNEMPLOYMENT

FROM BAD TO WORSE

According to Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, who collaborates with S&P Global on the PMI index, “In the eurozone, the situation is deteriorating.” According to the PMI index, Germany is already deep into a recession, with flat output in the second quarter indicating a significant struggle. This situation spells trouble for countries like Poland, which counts Germany as their biggest trade partner. The European Central Bank (ECB) in October held off on raising interest rates for the first time in 15 months. As it is, the benchmark interest rate for the euro holds at 4%, the highest rate since launching the currency in 1999. The 20 countries using the euro have seen an annual inflation of 5.3%, well above the ECB’s 2% target. Meanwhile, the National Bank of Poland cut its benchmark reference rate by 25 bps to 5.75% in October, after a surprising cut of 0.75 points in September. As the NBP head pointed out, despite inflation, the economy needs room to breathe, and keeping rates above 6% might result in freezing the economy while combating inflation. Poland’s inflation rate sits at 8.2%, down from 10.1% in August.

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

“UNLESS IT IS UPSET BY MAJOR GEOPOLITICAL EVENTS, UNEMPLOYMENT WILL SEE A SLIGHT UPTICK IN 2024”

This isn’t the first time Poland went against the grain, economically speaking. The 20082011 downturn comes to mind. Poland maintained positive growth, while all other EU economies slumped. This time, the country’s economic independence and flexibility have allowed it to weather economic turbulence to some extent, but currency independence will stave off the inevitable only so long. The OECD forecasts a slowdown in Poland’s real GDP growth to 0.9% in 2023, citing uncertainty, high inflation, and tighter monetary policy. Economic challenges include weak private consumption, slowed investment, and inventory growth. However, a recovery to a 2.1% GDP in 2024 is expected, partly driven by EU funds. Inflation is predicted to decrease, averaging 12.4% in 2023, influenced by moderated energy prices. Domestic inflationary pressures will likely ease in 2024, leading to a gradual decline to 4.8%. Despite the EU’s economic downturn, Poland appears to be weathering the storm for now.

WHERE IS THE UNEMPLOYMENT?

From January to August, the unemployment rate consistently held steady, fluctuating only between 2.7% and 2.8%, according to the European statistics office. GUS also reported a steady unemployment rate, although at a reported rate of 5.0% in September. The reason for the disparity between Eurostat and GUS data lies in their methodologies. Eurostat uses the International Labor Organization (ILO) definition of unemployment, which includes people without work, available for work, and actively seeking employment. GUS

PREVIOUS SPREAD SHUTTERSTOCK

he specter of unemployment is something most people have grown accustomed to. Whenever the US economy faces a downturn, companies usually respond with employee layoffs. EU economies have different rules for cutting employment, but the fact remains: when companies cut costs, at least some employees will lose their jobs. It follows that when times are hard, as in the EU and Poland this year, businesses look for savings by furloughing or cutting ties with employees. The unemployment rate must, according to the laws of classical economics, go up. But that has yet to happen in 2023, at least not in Poland, raising the question as to why. Are the unemployed not seeking new jobs as they live off of savings? In these inflationary days, that seems unlikely for most Poles. It may be that the truth is out there but is being covered up by political hijinks, sleight of hand, or maybe even an error in calculations. What is the cause of this paradox, and where is the labor shortage most acute?

uses a different definition that includes people registered as unemployed with the labor office. Their definition may exclude some people who are not registered as unemployed but are still looking for work. Self-employment also affects unemployment rates, and accounts for approximately three million in Poland. Amendments to the tax laws, which reduced the fiscal burden on entrepreneurs, encouraged sole traders to avail themselves of the opportunity to work for themselves. In Poland, the unemployment rate is calculated based on the number of unemployed individuals as a percentage of the labor force. The labor force includes both employed and unemployed individuals but does not typically include self-employed individuals like sole traders. The unemployment rate does not capture the full complexity of the labor market, like the underemployed – where individuals work fewer hours than they would like.

TALENT SHORTAGES

The Polish economy rebounded strongly after COVID. This was in part driven by a diversified economic base, EU funds utilization and a robust financial sector. There remains a need for private investment, innovation, and regional value chain improvement for enhanced productivity. A lot is going right with the direction of corporate investment and handling of expenditures. However, some cracks are beginning to show, and no matter how one manages the economy, the problem of demographics, salary expectations, willingness to work in manual labor or even the ability to find the right candidates inhibits economic growth. According to the World Bank, around 75% of Polish companies in IT and technology declare that it’s difficult to find the right job candidates. Up to 83% of communications services jobs go unfilled because of a shortage of talent. Construction workers, steel fixers and concrete placers, sheet metal workers, roofers, pavers, carpenters, masons and plasterers, HVAC/Gas fitters, heavy equipment operators, and finishing process engineers are in high demand, yet few young people are willing to fill those jobs. Immigration helps, but immigrants are in no way a silver bullet for the issue of labor shortages in so-called “dirty jobs.”

MIGRATION POLICY NEEDED

Immigration has eased labor shortages in low-skilled jobs in Poland since 2014. Although beneficial, the lack of a migration strategy lim-

its the full potential of immigration to address shortages. A well-planned migration and integration policy could enhance the impact on labor shortages. As Poland’s economy grows, an expected increase in migrants may further alleviate shortages. Government must analyze the economic, political, and cultural implications of its migration strategies. Poland is at the edge of the Schengen area and feels the full brunt of northward migration. The need for a sound immigration policy to absorb workers is not only smart, but a necessary part of maintaining a strong economy in Poland. On top of that, Poles themselves are not opposed to moving out of the country for better work opportunities. Around 18 percent of Poles were considering economic emigration in 2022, according to Statista. The people who often go abroad are manual workers, the prevailing reason for leaving being higher wages than at home. Germany, the UK, and the Netherlands were the most popular destinations for working abroad in 2022. This migration obviously affects reporting on the unemployment rate.

WHAT’S NEXT?

Again, the declining and rapidly aging population, mixed with the eventual end of the Ukrainian war, will alter the labor pool dramatically. Of the native population, there is a strong desire for work-life balance and less willingness to sacrifice for employers. Highly educated Millennials and Gen Zs are far less likely to tolerate what they consider unfair working conditions. This trend is a phenomenon not only in Poland but also in much of the developed world. The rise of labor unions in the US and elsewhere indicates that labor is aware of its rising power. However you slice it, the unemployment rate and economic downturn do align, in part because of the fluidity of labor into and out of Poland, the soundness of economic policy, and a well-diversified economy. The future is something else. Statista is projecting a rising unemployment rate by 2025. Statista does not explain why, however, a weakness in domestic demand, particularly consumption and high consumer prices for most goods and services, is slowing the economy even as unemployment rates remain steady. According to the European Commission, Poland’s GDP is expected to rise even as growth heads down in the EU and the euro area in 2023 and 2024. Unless it is upset by major geopolitical events, unemployment will see a slight uptick in 2024.

WBJ.PL

INVESTING in Poland

IKEA increased revenue in Poland by 9% to over PLN 6 bln in the financial year 2023

IKEA Retail Polska increased revenues by 9% y/y to over PLN 6 billion in the financial year 2023 (from September 1, 2022 to August 31, 2023), the company announced. The online channel accounted for 30% of total revenues. Currently, every fifth product sold in IKEA stores around the world comes from Polish factories. In addition, Poland is one of the first markets where IKEA introduced the Planning Studio format, smaller stores dedicated to kitchen, bedroom, and living room planning.

>>>

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

OPPOSITE PAGE SHUTTERSTOCK, THIS PAGE UNSPLASH (4)

Jeronimo Martins plans to allocate 45% of investment to Poland

Data4 secures €2.2 bln in financing, €500 mln slated for Poland

Jeronimo Martins, the owner of brands such as Biedronka and Hebe, plans to allocate approximately 45% of this year’s investment expenditure to its operations in Poland, according to the company. The statement emphasizes the company’s commitment to long-term goals, maintaining previously disclosed plans for each business, with a focus on prioritizing investments. The investment program for Q1-Q3 2023 reached €790 million, with around 44% invested in Biedronka. As of the end of Q3 2023, the Biedronka network had 3,473 locations, and Hebe had 328 locations. The company aims to align investments with the 2022 spending level of around €1 billion.

Data4 Group has secured funding of €2.2 billion, extendable to €3.2 billion for further expansion in Europe. The company aims to quadruple its sales to €800 million within seven years, with €500 million allocated for investments in Poland. After launching operations in Poland in 2021 and Germany earlier this year, Data4 plans to consolidate its European presence, providing clients with a highly connected digital platform targeting over 1 GW by 2030. Investment plans include €2 billion in France, nearly €1 billion in Germany, €1 billion in Italy, over €500 million in Spain, and €500 million in Poland by 2029. The funding will also refinance existing debt and acquire new locations for data centers. Data4’s first Polish campus is in Jawczyce near Warsaw, featuring four facilities with a total capacity of 60 MW.

AstraZeneca opens innovation space in Warsaw

Deutsche Telekom opens “5G Testing Lab” at the Hubraum campus in Kraków

Leading innovator in the biopharmaceutical industry in Poland, AstraZeneca has launched Forum, a unique space designed to develop and promote cutting-edge technological solutions in various socially important areas. “Innovation and creative thinking require social capital, a creative atmosphere, and an open environment where ideas, opinions, and insights can be exchanged, confronted, and blended in an uninhibited way at a very early stage,” said Wiktor Janicki, president of AstraZeneca Pharma Poland, during the opening of Forum.

Deutsche Telekom has opened the “5G Testing Lab” at the Hubraum campus in Kraków, T-Mobile Polska reported. This marks the first laboratory of its kind for Deutsche Telekom in Central and Eastern Europe and the third worldwide, with previous laboratories in operation in Berlin and Seattle. Hubraum connects Deutsche Telekom, startups, and developers with the goal of accelerating innovations and creating new business opportunities.

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INVESTING in Poland

POLISH SUCCESS STORIES ARE WAITING TO BE TOLD

WBJ: How did Silicon Valley’s success come

about? Alireza Shabani: What facilitated the construction of the world’s most important technological center in California was the concentration of money, talent, and experience within a 30-minute drive from San Francisco. As a result, strong networks of local scientists, practitioners, and entrepreneurs were formed. Unlike the center in Massachu-

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

setts (MIT), which enforced stringent non-competition clauses, Silicon Valley had more flexible rules, allowing the easy movement of employees between companies working on breakthrough technologies. Researchers and engineers from countries where scientific activity faced impediments for various reasons also migrated to Silicon Valley, where they encountered a welcoming culture for newcomers. I myself am of Iranian origin.

PRESS MATERIAL

Alireza Shabani, a scientist and entrepreneur working for top technology companies, sees many similarities between Poland and California during the early days of the technological revolution. He has decades of experience in quantum computing, working at Google, founding his own startup (Qulab), and later joining Cisco Quantum Lab. WBJ interviewed Alireza during Innovation Night at IDEAS NCBR, where he gave the inaugural lecture.

INTERVIEW BY BEATA SOCHA

What financing model did Silicon Valley adopt and why? Under the conditions in California, entrepreneurs immediately tapped into the vast American market, ultimately conceiving of large-scale solutions that would reach over 200 million customers. For this reason, the “venture-backed” model, characterized by financing from venture capital funds, dominated the first decades of the evolution of this technological hub. Companies that developed in this environment became the engines of the economy, accounting for most of the research and development expenditures in the US. What opportunities do you see for creating a “Polish Silicon Valley”? For one, there is a Polish diaspora in practically all developed countries. The decades-long emigration of professionals to foreign markets, especially Western

have a Polish IT sector with a reputation as one of the best in the world. What about concentration in the market? Poland has several tech hubs including Kraków, Wrocław and Warsaw, but they are not within a 30-minute drive of each other. Extensive adoption of remote communication by Polish companies and institutions removes the necessity of the "30-minute drive," a crucial factor in California half a century ago. Warsaw, Kraków, and Wrocław can still serve as hubs for IT, but technological companies can be more dispersed while effectively cooperating with foreign partners. The Polish VC market is nowhere near as developed as in the US. Where should Polish startups look for financing?

“Unlike MIT, Silicon Valley had more flexible rules, allowing the easy movement of employees between companies working on breakthrough technologies” ones, allows Polish entrepreneurs to gain new footholds thanks to active connections with their home country. It enables both the transfer of know-how back to Poland and investments by private individuals, who have achieved financial success abroad, into Polish startups. You mentioned America’s 200-million population. Is Poland’s domestic market large enough to provide startups with sufficient momentum? Poland’s 38-million internal market is large enough to make it worth developing businesses on a larger scale. Poland’s presence in the EU facilitates expansion to neighboring countries, and there is no need to accumulate as much capital as with global companies. Another crucial aspect is the large number of people with a technical education. Poland ranks fourth in Europe in terms of graduates in STEM fields (science, technology, engineering, mathematics). Add to this the high quality of education in Poland, and you

Polish entrepreneurs can seek support for their projects from both state institutions and private capital. Importantly, due to Poland’s favorable and stable international and economic situation, sources of funding can also be sought in distant and unconventional places, and the still relatively young Polish market provides funds with a satisfying rate of return. How important are unicorns in creating a Silicon Valley? Polish success stories are waiting to be told. While in the world of technology, Spotify is associated with Sweden, and Skype and Bolt with Estonia, the stories of Polish companies that have conquered the world (e.g., CD Projekt or Allegro) are not yet widely known and are waiting to captivate the imagination of investors in this industry. Stories of successful initiatives that began in Poland could become the showcase of a new Silicon Valley on the Vistula and complement the “hard” competencies with a narrative of Polish success.

WBJ.PL

INVESTING in Poland

SECURING EUROPE’S FOOD PIPELINE The Russo-Ukrainian war was always going to have far-reaching consequences. Ukraine, the Breadbasket of Europe, became a political football as the West imposed sanctions on Russia. The ripple effect on oil production costs and its derivatives – fuel, plastics, clothing, car parts, etc. – led to some uncomfortable conclusions. At the same time, food production, especially fertilizer, came under threat as well. Poland’s fertilizer producers have been tasked with striking a fragile balance in an unstable environment.

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

BY SEAN REYNAUD

PLN 1.7 billion

Is the cost of Anwil’s nitrogen fertilizer production line in Włocławek, the company’s largest investment to date

PLN 3.9 billion

was given in subsidies to farmers to compensate for high fertilizer prices in October 2022

SHUTTERSTOCK

oland, a prominent EU agri-food producer and exporter, annually exports agri-products worth €32 billion, primarily to other EU nations. The government is committed to supporting farmers and fertilizer producers and has contemplated measures such as capping fertilizer prices to ensure food production sustainability. In 2021, nitrogenous fertilizers held the largest share in Poland’s production of mineral and chemical fertilizers. In October of 2022, PLN 3.9 billion was given in subsidies to farmers to compensate for high fertilizer prices. A proposal in December of 2022 to aid fertilizer plants was discussed by the Ministry of Agriculture’s Henryk Kowalczyk. The conclusion was that the threat of a disruption to the food supply, and Poland’s economic well-being, was a clear and present danger. Grupa Azoty has recently inaugurated a Biofertilizer Research and Development Center at its Fosfory plant in Gdańsk. Positioned as a key competence hub for the company, the center will concentrate on advancing biofertilizers tailored for sustainable agriculture. As the second-largest producer of nitrogen and compound fertilizers in Europe, Grupa Azoty aims to leverage its expertise in developing environmentally friendly fertilizer formulas. The Gdańsk center will collaborate with other research units within the company, sharing infrastructure and engaging in joint projects. It aspires to set new benchmarks in creating effective and environmentally sound fertilizer formulations. Anwil recently launched its largest investment in history with PLN 1.7 billion for the construction of its third nitrogen fertilizer production line in Włocławek. The aim is to increase Poland’s food security and to help comply with EU regulations.

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INVESTING in Poland A DISTURBED SYSTEM

Before the Russia-Ukraine conflict, Russia supplied up to 45% of the EU’s natural gas imports. By October 2022, due to sanctions and the mysterious ruptures of the Nord Stream 1 and 2 gas pipelines, Russian supply to Europe was reduced to 7.5%, with three out of four pipes were rendered inoperable. The pipeline incidents coincided with the opening of the Baltic Pipe, connecting Poland and Norway through Denmark and bringing in North Sea gas. Western suspicions were that Russia had sabotaged the pipelines, especially given Russia’s history of weaponizing energy. Others pointed fingers at the US. Regardless of the cause, Poland found itself in the midst of another crisis. The conflict between Russia and its neighbor not only disrupted the already unstable global economy but also added another layer of complexity to a world seeking normalcy post-pandemic. The ill-planned invasion had repercussions beyond Ukraine, affecting global trade dynamics. As a result, Ukrainian grain ex-

sizing the importance of “maintaining food security.” Ironically, it was Azoty that had at one time cautioned Anwil, in June 2019, that construction of its third nitrogen fertilizer line in Włocławek in central Poland had the potential to spark a price war in the country. However, neither Azoty nor Anwil could have foreseen the unsettling convergence of the global pandemic and Russia’s invasion of Ukraine back in the relatively tranquil days of 2019. The most recent financial data confirm what market analysts have expected: Grupa Azoty reported a consolidated net loss of PLN 743 million in the third quarter of 2023, compared to a loss of PLN 79 million a year earlier. The company cited energy prices as the main factor behind the alarming figures. Yet, investment projects are being completed on schedule, including a new oxygen compressor valued at PLN 77 million that has just been installed in the Ammonia Department of the Azoty Group in Kędzierzyn. Clearly the stakes are greater than just poor quarterly results.

“Neither Azoty nor Anwil could have foreseen the unsettling convergence of the global pandemic and Russia’s invasion of Ukraine, back in the relatively tranquil days of 2019” ports decreased, and the soaring cost of fertilizer sent ripples through an interconnected, global system.

PRIORITIZING FOOD SECURITY

The squeeze on fertilizer production hit hard. On August 23, 2022, Grupa Azoty S.A. temporarily shut down nitrogen fertilizer production at its largest plant in Puławy in eastern Poland because of a surge in the price of natural gas. Gas prices almost quadrupled in six months, climbing from €72/MWh on February 22, 2022, to €276/MWh by August 22, 2022. Grupa Azoty attributed the temporary suspension of its nitrogen fertilizer production to the unprecedented surge in natural gas prices, following similar moves by its competitor Anwil in August 2022. Oil giant Orlen’s Anwil subsidiary shut down production in August of 2022, stating that gas prices were affecting not only Poland but all of Europe. However, a week later, Anwil resumed production, empha-

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

A GLOBAL PROBLEM

In 2022, per the Independent Commodity Intelligence Services (ICIS), surging natural gas prices in Europe led to the shutdown or reduced operation of at least 13.5 million tonnes of fertilizer and chemical capacity. This decline accounted for up to 63% of regional capacity for the most severely affected products. However, the impactful reduction proved to be shortlived. By October 12, Grupa Azoty had resumed operations at the Tarnów nitrogen fertilizer plant. Still, it soon became apparent that price stability would be challenging, highlighting the need for swift and decisive actions. Economic indicators signaled continued global challenges and an imminent downturn. It became imperative for Poland to implement decisive measures, including planning for a future independent of Russian gas. As per the World Food Program, fertilizer prices

have more than doubled in 2023 in countries like Nigeria, where almost two-fifths of the 90 million population experience “insufficient food consumption.” The New York Times reported that the crisis, initiated by the COVID-19 pandemic, elevated the cost of transporting fertilizer ingredients. The war in Ukraine and climate change have exacerbated the situation. In addition, the US Federal Reserve has raised interest rates in order to curb domestic inflation in the last 18 months, resulting in the increased value of the American dollar against many currencies. As fertilizer components are priced in dollars, they have become significantly more expensive in countries like Nigeria. This begs the question, How secure is our food supply if it depends on oil, natural gas and potash?

THE FERTILIZER TRIO

There are three types of fertilizer: nitrogen, phosphate (usually sourced from bird or bat guano), and potassium. Not all plants require all types of fertilizers, but several (corn, wheat, potatoes, tomatoes, cotton, rice, and soybeans) require a combination or all types of fertilizers for optimal growth. As we have seen, nitrogen is made through a process involving natural gas, which can sometimes be pricey. Potassium, however, requires potash or a complex series of other chemical processes to obtain potassium from wood ash or the recycling of agricultural residues and byproducts. Most crops need potassium and a lot of it. On the other hand, most farmers have been overfertilizing their fields with potassium for decades, which has, in turn, led to potassium-saturated soils. Because of this saturation, it is possible to sow crops without potassium for years, although eventually, farmers will need potassium-based fertilizers. Potassium comes from potash sourced from places like Jordan, Israel, Germany, Russia, Belarus, and Canada. Of those countries, Canada is the least problematic with regard to the acquisition of potash. Mining potash is a major industry in Belarus, but as Poland’s eastern neighbor is closely allied with Russia and faced sanctions even before Russia’s invasion of Ukraine, buying from Belarus is problematic. Most potash from Belarus flowed through Lithuania, but geopolitical factors have disrupted this supply chain. With control shifting, Russia now oversees the transportation of potash from Belarus. This strategic control provides Russia with a considerable influence over a significant portion of the global potash supply, marking a shift in the dynamics of the industry.

Phosphorus fertilizers are under threat worldwide due to several factors. There is an increasing demand for phosphorus, and, according to the US Geological Survey, estimates are that global phosphorus consumption has increased from 47.0 million tons in 2018 to 50.5 million tons by 2022. Supply disruptions also affect phosphorus supplies as China and Morocco are the top phosphate-producing countries, and China has placed restrictions on exports of phosphate to drive down domestic prices. And if this wasn’t enough, The Frontiers of Agricultural Science and Engineering journal has raised the alarm, declaring an impending crisis in the sustained provision of phosphate fertilizers crucial for worldwide food production. Over the last three years, the projection for the remaining years of rock phosphate supply has dwindled from an estimated 300 years to 259 years, a decline attributed to the surge in demand during this period. If demand continues to rise, we may see the end of supplies by 2040, however unlikely.

EU COMPLICATIONS

Add to all these issues the complications of EU regulation. The EU Fertilizing Product Regulation (Regulation (EU)2019/1009) came into effect on July 16, 2022. It established rules for the free movement and product requirements of EU fertilizing products, obligations of economic operators/manufacturers and authorized representatives, the inclusion of recycled and organic materials, and efficiency requirements. Like many new regulations, implementing the EU rules on fertilizing products has encountered challenges. While fertilizer manufacturers generally endorsed the regulations, they expressed the need for an adaptation period due to the complex and technical nature of the rules. Various obstacles impeded the immediate application of the regulation in 2022, and some are still struggling. Issues include a shortage of accredited Notified Bodies, incomplete harmonized standards, challenges in obtaining detailed information on component materials from global suppliers, and delays in finalizing legal provisions for certain amendments. Despite many problems plaguing the fertilizer industry, the Polish government seems clear on one issue: food security is a top priority for any country, and maintaining a solid fertilizer production base will go a long way towards achieving this goal. And amidst global shortages, Polish fertilizer producers may turn their current precarious position into a market advantage.

WBJ.PL

AI/ENERGY

NASK and Energy Institute to implement AI-powered renewable energy optimization

SHUTTERSTOCK

NASK and the Institute of Power Engineering are joining forces to apply artificial intelligence (AI) in configuring and optimizing energy systems, emphasizing hydrogen technologies and renewable energy sources. Their collaboration extends to cybersecurity, addressing threats and compliance with the NIS2 directive. They plan to modify cybersecurity policies, conduct training and audits, aligning with current energy security requirements. Additionally, the focus on renewable energy includes using AI algorithms to optimize energy systems in emergencies. NASK, specializing in internet security, collaborates with the Institute of Power Engineering to address the transformation needs of the Polish energy sector and EU climate goals through research and development projects.

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ENERGY

Google Cloud will buy green energy from Polsat Plus Group Google Cloud and the Polsat Plus Group (GPP) announced a strategic partnership under which Google will sign its first contract in Poland for the purchase of green energy, which will be produced by the Przyrów wind farm. The target capacity of the wind farm consisting of 14 wind turbines is 50.4 MW, which will allow for the annual production of approximately 105 GWh of energy.

AI/AUTOMOTIVE

Smartlink Partners invests in AI vehicle recognition tech Smartlink Partners, a fund co-founded by Polish entrepreneurs, has invested in Vumo, a company specializing in AI-driven vehicle analysis products. Vumo uses AI-powered robots for vehicle imaging and control processes, serving clients such as dealership networks, car rental companies, and insurers in the US, Canada, and the UK. In 2023, Vumo doubled its Monthly Recurring Revenue (MRR).

provider, has acquired its largest Polish competitor, LiveCall, solidifying its position as the leader in the native contact widget market. The acquisition makes CallPage the leader in automatic callback tools, with 1500 clients across 50+ countries, including major brands like InPost and Docplanner. The LiveCall purchase expands CallPage’s portfolio to include brands like Booksy and Itaka. Despite AI developments, CallPage’s revenue grew 10% in the last year, reaching 35% across 50 markets. The company is eyeing further international expansion, particularly in the US, and doesn’t rule out additional acquisitions. RETAIL

Sescom with a PLN 11 mln deal for RFID inventory tracking system in Biedronka

CUSTOMER SERVICE

SHUTTERSTOCK

CallPage acquires main rival in Poland CallPage, an online customer-business solutions

Sescom has signed a contract with Jeronimo Martins Polska to implement an inventory service using RFID technology and Sescom’s proprietary SES Matic software in Biedronka discount stores. The estimated value of the contract is around PLN 11.5 million net. The contract involves providing services for 3,435 stores

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

and is expected to be completed by March 31, 2024. Services include building an asset database, supplying and tagging fixed assets and designated asset elements with RFID tags, conducting inventory using RFID readers, and utilizing SES Matic software for inventory process management. CLOUD COMPUTING

Percentage of companies using cloud services grows to 55.7% in 2023 In 2023, the number of businesses purchasing cloud services increased by 27 percentage points y/y, reaching 55.7%, according to the Central Statistical Office (GUS). Simultaneously, the percentage of businesses utilizing social media rose by 2 percentage points y/y to 47.6%. The report “Information Society in Poland in 2023” reveals that 36% of businesses utilized ERP software, 28.5% used CRM programs, and 10.5% employed Business Intelligence solutions. 18% of businesses conducted data analytics, primarily focusing on transaction data (16.6%). 67.3% had a website, while 4.1% provided customers with a downloadable smart-

phone application. Additionally, one-fifth of businesses invested in online advertising, with content-based or keywordfocused internet ads being the most popular choices. The percentage of businesses with internet connections exceeding 500 Mbit/s increased by 2 percentage points y/y to 25.3%, with the largest growth seen among large entities (5.6 percentage points).

Candidates in IT say it’s harder to find a job A substantial 47.6% of job seekers in the IT industry find it more challenging to secure a job than they did a year ago, according to a report conducted by No Fluff Jobs. Nevertheless, 40.2% of respondents believe that the situation remains

unchanged compared to the previous year. The most critical information for IT candidates in job advertisements includes the technologies used and developed by the company (70.4%) and salary transparency (64%). Notably, 45.5% of respondents do not submit their CVs for job offers that lack information about the proposed salary.

ing behind. The reluctance and concerns of employees toward AI implementation are cited as a significant factor hindering AI investments for Polish managers. The report emphasizes the need for education and guidelines in the rapidly developing generative AI space.

55.7%

percentage of companies using cloud services in 2023, an increase by 27 percentage points y/y

Almost half of Poles notice changes related to the use of AI at work In Poland, 48% of employees notice changes related to the use of artificial intelligence in the workplace. However, more than 40% of employees are not afraid of losing their jobs due to these changes. “In the face of these changes, it is important for both employees and employers to adopt a flexible strategy,” said Marta Szymańska, a recruitment manager at Manpower. At the same time, 52% of Polish employees do not notice changes in their industry related to process automation and the use of AI. AI

ALL IMAGES THIS SPREAD SHUTTERSTOCK

Polish companies use AI for marketing, customer service and e-commerce Polish companies most frequently utilize AI in marketing (45%), customer service (42%), and e-commerce (38%), according to a report by SAP titled “Digitally Driven Business: Development in the Face of Industry 5.0.” Surprisingly, 42% of respondents claim that AI supports their business in making strategic decisions. The majority (59%) expects AI investments to increase in the next two years, and organizations not investing in this technology risk fall-

TECH NUMBERS

(GUS)

TELECOMS

5G auction concluded The Polish National Regulatory Authority for Electronic Communications (UKE) has concluded the auction of frequency bands from 3400 to 3800 MHz. Each of the four participating operators secured a 100 MHz block. The total revenue for the state budget is over PLN 1.9 billion. The winning bids for 100 MHz blocks are as follows: A (3400-3500 MHz) – Polkomtel for PLN 450 million. B (3500-3600 MHz) – P4 for 487.095 PLN million. C (3600-3700 MHz) – Orange for 487.095 PLN million. D (3700-3800 MHz) – T-Mobile for 496.837 PLN million. UKE President Jacek Oko announced the initiation of proceedings for reservation decisions, expected to conclude in early December. Winners must make payments within 14 days of receiving decisions. They can immediately utilize frequencies and apply for radio permits.

47.6%

of job seekers in the IT industry find it more challenging to secure a job than they did a year ago (No Fluff Jobs)

42%

of Polish companies claim that AI supports their business in making strategic decisions (SAP)

40%

of employees are not afraid of losing their jobs due to AI (Manpower)

WBJ.PL

reotech Instruments, a space and quantum tech company from Piaseczno outside Warsaw, has recently reached a market cap of PLN 450 million. While still not a unicorn, the company seems to be going from strength treotech Instruments, a space and quantum tech company from Piaseczno outside Warsaw, has recently reached a market cap of PLN 450 million. While still not a unicorn, the company seems to be going from strength to strength, securing contracts with the European Commission and the European Space Agency for satellite and quantum tech. The company’s revenue for the first six months reached PLN 19.8 million, a 31% increase y/y and its product sales recorded a 30% increase y/y, reaching PLN 11.9. In the commercial space segment alone, the company has identified the potential for orders of some 150 satellites, currently exceeding the firm’s production capabilities. To meet the growing demand, the firm has been investing heavily in new production facilities, covering an area of 2800 square meters. The heavy investments explain the firm’s negative EBITDA for H1 at PLN -2.7 million.

REACHING FOR THE STARS Space tech has stopped being the exclusive domain of academic science and government agencies. Or more accurately, it has risen above proof of concept and prototype stages to commercial and widespread applications. One Polish company has seen a meteoric rise in recent years, from a local engineering firm to one of EU’s top suppliers of satellite components and quantum technology. BY BEATA SOCHA

NOVEMBER 2023 WARSAW BUSINESS JOURNAL

BECOMING AN EU LEADER Creotech is indeed aiming high. Apart from serving commercial clients, Poland’s top space firm is involved in developing satellite components and defense systems: in May, the firm signed a contract with the State Treasury’s Armament Agency to do a feasibility study for a constellation of optoelectronic microsatellites. The company’s expertise in satellite systems has been well recognized in Europe, too. In July, Creotech became the leader of the EU’s satellite segment in the REACTS project. In this role, Creotech coordinates the efforts of a group of world leaders, including OHB and Airbus. The company’s CEO, Dr. Grzegorz Brona, admitted that the REACTS contract “puts us in a completely different position on the global stage of satellite producers, systems, and satellite components compared to a year ago.” He added that the company’s goal is to become the leading supplier of microsatellite technology in the European Union for defense and commercial projects. The benefits of becoming a leading space company in Europe can potentially be pretty significant, considering Poland’s contribution to the European Space Agency has increased to €295 million for 2023-2025. “Our current and future actions will be focused on implementing this plan to fully utilize Creotech’s development opportunities and ensure that potential projects worth approximately €300 million translate into actual contracts and orders for the

company,” commented Dr. Grzegorz Brona. As per the European Space Agency's contribution mechanism, a substantial share of this sum is expected to circulate back to Poland through projects and orders for domestic companies. Creotech plans to participate in many of those. “Over the past 10 years, we have jointly implemented more than 25 projects with ESA, with the latest being the JUICE probe, which began its journey towards the Jupiter system in April,” said Paweł Górnicki, deputy CFO of Creotech. Apart from the European Space Agency, the firm regularly delivers its solutions to the most advanced research institutions globally, including the European Organization for Nuclear Research CERN in Geneva, MIT, Oxford University, the University Of California, Berkeley, and the GSI Helmholtz Centre for Heavy Ion Research in Germany. Key projects of the company include EagleEye, aimed at developing an Earth observation microsatellite, which will be launched into orbit in 2024, and the PIAST constellation, which plans to place three observational small satellites in orbit in 2025, all based on the HyperSat platform. One of the ESA projects that Creotech is a part of involves the development and manufacturing of prototypes of large-surface detectors using superconducting nanowire technology. The detectors will serve two purposes: supporting quantum key distribution (QKD) networks for receiving keys from satellites and facilitating optical communication. The project is expected to conclude in September 2025.

GOING QUANTUM While still in its nascent stages, quantum technology has immense growth potential, and Creotech has already secured its place in the emerging market. The Polish company has been tasked with co-implementing the first large quantum computer for the European Union in an international consortium led by the University of Innsbruck. In April, the company signed a contract with the European Commission, whose first phase is valued at €20 million. Creotech’s cut is estimated at around €2.2 million. The project aims to create a 100-qubit computer, and Creotech Instruments will be responsible for developing and delivering the control system for ion traps based on an entirely new concept of an integrated circuit that is ultimately compatible with cryogenic conditions. The integrated circuit will be crucial for the scalable management of the quantum processor, something that has thus far proved elusive for quantum computer designers, making them not only more reliable but also able to interface with classic computers. Once the consortium manages to build the 100-qubit computer, the second phase will involve the creation of 1,000 qubits. Creotech is the only representative from Central and Eastern Europe in the project.

WHY IS QUANTUM TECH NECESSARY? To understand the gravity of the task Creotech is endeavoring to accomplish in the quantum computer project, we must understand the differences between classical and quantum computers. Due to the quantum nature of the technology, the architecture of quantum computers is entirely different from microchip ones. It is three-dimensional and requires highly specialized facilities to build. We could, for instance, compare the two to cars and ships. Classical computers, like cars, are versatile and can perform a wide range of tasks. They handle tasks sequentially, similar to how cars operate on roads, following a predefined path. No water or air vessel can do what cars can: get us from point A to B on land with perfect precision and at a reliable speed. However, classical computers have limitations, much like cars do. They can only process a certain amount of data simultaneously, creating bottlenecks for complex calculations and simulations. Neither can they travel on water or fly – they weren’t built for water or air travel. But, like ships, quantum computers have the potential to explore hitherto uncharted territories of computation. They harness the principles of quantum mechanics to perform complex calculations at speeds unimaginable for classical computers. Quantum computers can potentially solve problems practically unsolvable by classical computers, like climate models on a large scale, which could prove instrumental in managing and solving the challenges of climate change. They excel at tasks like factoring large numbers, optimizing complex systems, and simulating quantum physics phenomena. Quantum computers are likely to usher in another breakthrough in cryptology, as their potential to break encryption is incomparable with classical computers. Once that becomes a reality, cryptocurrency developers (provided they are still around) would need to adopt quantum-resistant cryptographic algorithms to remain secure. If successful, the feat that Creotech is attempting (creating an integrated circuit for quantum computers) would be the equivalent of a ferry: capable of both housing multiple cars and traversing waters, a crucial link between land and another medium altogether. If done poorly, however, it would be like shooting the car into space. Flashy, but ultimately of little use.

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Life + Style

ZIETA STUDIO: LIGHTS, SHAPES, & COLORS Oskar Zieta is fascinated by the properties of metals, which he transforms into furniture and sculptures that captivate the senses, blurring the line between what's possible and what's merely imaginary through a proprietary method of metalworking that offers infinite possibilities for manipulating the material without sacrificing the authenticity and naturalness of the craft.

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ECOLOGY, TECHNOLOGY, AND ECONOMY When Cassina began producing the Superleggera chair, designed by Gio Ponti, in 1957, experiments with structural strength and lightness belonged primarily to architecture. In their designs, creators like Buckminster Fuller and Jean Prouvé emphasized the primacy of construction quality over form. In 2019, Oskar Zieta decided to take on the challenge of lightness again in a project involving a functional object that fascinated the entire world. The result of his exploration is ULTRALEGGERA, a chair that astonishes with its weight and mesmerizes at first sight.

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Zieta Mirrors are framed in bionic shapes, provoking the observer. In their flexible deformations, they bend light in an unexpected manner, creating extraordinary sensory experiences. Now, the mirror portfolio has been expanded with new gradient finishes inspired by Oskar Zieta's passion for cosmic themes. These mirrors enrich the mirrored surfaces of RONDO objects in Idox and expand the TRANSITIONS collection with a new shape and shade called HELIX NEBULA. The COTTON CANDY collection, in its elaborate arrangements, introduced the steel surface to new perceptual dimensions. ZIETA LUMINARIES, on the other hand, is a perfect fusion of craftsmanship, technology, and fascination with light. The collection is the result of exploring the potential of the proprietary FiDU technology in lamps and its seamless combination with the traditional technique of metal spinning. All objects from Zieta Studio are based on the fundamental value of the "less means less" manifesto: technological research is aimed at optimizing lightweight design, advanced metal expansion technologies, and parametric algorithms. Together, these elements contribute to a narrative of ongoing reduction in material, energy, and data consumption. Oskar Zieta's work is not limited to a detailed narrative about aesthetics and form alone. Simultaneously, it carries an important social message regarding responsible consumption and production aimed at contributing to the well-being of future generations. For more information, visit the website: www.zieta.pl/en

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The Ultimate Christmas Luxury Gift Set Celebrate the joy of giving with a Private Collection Precious Amber gift set from Rituals

t is that special time of the year when we come together with family and friends to show our love and appreciation through thoughtful gifts that leave lasting impressions. The Private Collection Precious Amber large-sized gift set is the epitome of sophistication and an ideal choice for either selfindulgence or gifting a beloved friend or family member. This unique collection exudes a captivating fragrance that lingers in memory. The top notes enchant with juniper and fresh cardamom, creating an invigorating experience. As the heart note unfolds, the enveloping scent of ylang-ylang takes center stage, adding depth and allure. The composition culminates with the harmonious blend of aromatic patchouli, vetiver, and amber, leaving a warm, lasting impression.

Inside this splendid set, you'll discover scented mini fragrance sticks that fill the air with a captivating aroma, an interior fragrance that infuses every corner with its entrancing scent, and a candle that adds an extra layer of warmth and ambiance to any space. This is the perfect gift for individuals with refined scent preferences and those who appreciate intricate and powerful fragrance compositions. The aesthetically pleasing packaging adds a touch of elegance to any environment, making it an exquisite gift choice that will be treasured long after the holidays. Show your loved ones how much you care with the luxurious indulgence of Rituals Private Collection Precious Amber gift set. Price: Rituals Private Collection Precious Amber Gift Set, Large – PLN 309

THE GIFT OF ART FROM DESA UNICUM

hristmas is the perfect occasion to give someone a gift with soul, one that will be remembered for a long time. With a gift card from DESA Unicum, your loved one can fulfill their dream of hanging their favorite artist's painting on the wall or starting their own art collection. Whether it’s a postcard by Zofia Stryjeńska, a porcelain figurine from Ćmielów, or a painting by Edward Dwurnik, DESA Unicum offers a world of artistic possibilities. From sculptures to graphics, and even comics, there's something to captivate every artistic soul. With this gift card, the fulfillment of their dreams is within reach. The recipient can use the funds on the card to acquire any work of art available at DESA Unicum’s auctions or in the gallery sale. You can choose the amount to load on the card (with a minimum of PLN 1000), and your loved one can enjoy it for up to two years. WBJ.PL

EXQUISITE CUISINE AND ARCHITECTURE UNITE AT DOCK 19

In Warsaw's Elektrownia Powiśle, Mateusz Gessler's DOCK 19 blends Asian and European culinary traditions. Designed by Boris Kudlička and Partners, the restaurant offers a modern and inviting atmosphere, perfect for any occasion.

"Our design philosophy is sometimes described as 'sublime comfort,' and we see some truth in that. Escapism takes us, in the case of DOCK 19, from the streets of Powiśle to a slightly different world. Guests on this culinary journey, led by Mateusz Gessler, "sink" into the unforced atmosphere of the place and the fantastic dishes often served by Mateusz himself. The restaurants we designed, such as DOCK 19, Epoka at the Raffles Hotel and Belvedere, are meant to make your stay a culinary and visual feast," said Weronika Libiszowska and Rafał Otłog, architects and co-owners of the Warsaw-based Boris Kudlička studio.

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ock 19's building has a distinctive shape, measuring almost 45 meters in length and a little over 6 meters in width, posed a significant challenge for the architects. During the construction of the space, they drew inspiration from the colors associated with various shades of water. The building itself loosely resembles a ship, inviting guests to embark on a culinary journey with Mateusz Gessler through the unique flavors of two continents. The water motif also played a central role in determining the color scheme of the premises. This is evident in the special glass lampshades, whose structure mimics the reflections of water, as well as the use of corrugated steel with a texture resembling the slightly agitated surface of the sea. "We wouldn't stay true to ourselves if we didn't introduce a touch of surrealism to the interior, deviating from the main theme. In this case, it manifested in an installation inspired by a gateway to a carnival. This installation comes to life in the evenings, creating a more club-like atmosphere during weekends," explained Agata Motyka, the architect overseeing the project.

PHOTOS BY SEBASTIAN RZEPKA

Life + Style

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T ELEVATE YOUR LUXURY TRAVEL WITH THE ULTIMATE "LUXURY MOVER" Lexus has ventured into a new realm of innovation with the all-new Lexus LM, aptly dubbed the "luxury mover." This vehicle defies norms, merging the grace of a limousine with the spaciousness of a minivan.

he eagerly awaited Lexus LM has arrived in the European market, and it's more than a vehicle—it's a revelation in travel. It encapsulates the essence of Lexus' Omotenashi hospitality, redefining comfort, convenience, and well-being. This new LM reflects the diversification of the Lexus product range to address a wider spectrum of lifestyle and mobility requirements. The Lexus LM embodies a human-centered approach, offering both a perfectly relaxing living space and a flexible, mobile office for those who need to work while on the move. Two versions are available: a fourseater model, offering a rear cabin with two large, multi-function seats; and a seven-seat version, designed for VIP transport. The four-seat model is the pinnacle of luxury, with just two multi-function rear seats and a wealth of features to make every journey supremely comfortable and enjoyable. A partition separates the front and rear cabin has a massive 48-inch ultra-widescreen monitor and an adjustable glass panel for privacy. Other amenities include a Lexus Climate Concierge for precise temperature control, and a bespoke Mark Levinson 3D Surround Sound audio system with a dazzling 23-speaker array. Crafted with meticulous engineering, the LM offers an impeccably smooth, quiet, and serene ride. Building on the low center of gravity and high body rigidity benefits of the GA-K platform, Lexus has developed a new Rear Comfort drive mode, adopted new braking and body control systems and refined suspension performance. The LM 350h uses Lexus’ 2.5-litre selfcharging hybrid electric powertrain. The system is well-proven for delivering quiet, refined performance with high efficiency. Acceleration from rest to 100 km/h can be accomplished in 8.7 seconds (9.1 seconds for the FWD model); maximum speed for both models is 190 km/h. In a world that's constantly evolving, Lexus stands firm in its commitment to delivering luxury and quality. The all-new Lexus LM, the "Luxury Mover," redefines opulence on the road, introducing a new era of luxury travel that's bound to leave a lasting impression.

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Life + Style

IT'S SHOW TIME AT CHATON WARSAW

Warsaw’s exclusive dinner show club will deliver a night to remember…

iscover CHATON WARSAW, Restaurant / Live Show & Club - the most exclusive place of its kind in Poland. New, unique concept that combines art, food, beauty, fun and unforgettable emotions. Get ready for amazing experience provided by best artists, musicians and dancers, accompanied by top class cuisine and cocktails. In a 100-year-old historical building, which remembers the banquets and raves from the beginning of the last cen-

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tury, passionate people created a venue that has never been seen in this part of Europe before. Chaton Warsaw quickly became a favorite place of entertainment for business people, celebrities, expats and foreign guests. On four levels of glamorous tenement house, in Foksal St. in the very heart of Warsaw, there is a restaurant, club, dedicated cigar room and Diamond VIP Room. The "Dinner Show" concept, which is a combination of club, restaurant and theater, became very popular in the entertainment capitals of the world such as Barcelona, Miami, Los Angeles, Dubai or Shanghai. Now It's time for Warsaw. Chaton's main weekend attraction is the spectacular show - a feast for the senses - during an exquisite dinner guests will be delighted with a unique artistic program performed by singers, dancers, acrobats, drag queens from around the world. This November Chaton will treat its guests with two Dinner Show programs: „Disco Fever", „Super Bowl" and with two Le Show programs: „Dirty Wednesday" and „Sexy Back".

Nights at CHATON are genuine celebrations of life. Talented bartenders will serve unique signature cocktails, while top DJs will encourage you to dance all the night long. From Tuesday to Saturday from 6:00 PM until midnight, phenomenal Chef Michał Miłoszewski will take you on a culinary journey at CHATON Restaurant, presenting his signature menu that connects Polish and French flavors. Every evening you can expect live music, top cuisine and great vibes. Chaton is an ideal place for romantic date, business meeting or dinner with friends. Unforgettable experience guaranteed! If you're looking for more than just an ordinary night of entertainment and wish to explore new emotions while immersing yourself in a magical atmosphere - Chaton Warsaw is the place that will stay in your memoryfor a long time. For more information visit www.ChatonWarsaw.com

EVENTS

The WBJ relives or looks forward to the most important events in the world of business and economy

EFNI 2023: CHARTING THE FUTURE OF POLAND, EUROPE AND THE WORLD Discussions, late-night talks, and new ideas marked the European Forum for New Ideas (EFNI), organized by the Lewiatan Confederation in cooperation with Business Europe and the city of Sopot. This year’s 12th edition took place from the 11th to the 13th of October.

Roberta Metsola, President of the European Parliament, was a special guest at the opening ceremony. During her remarks, she addressed the challenges confronting democracies in their pursuit of political stability, social progress, and economic growth. Participants were welcomed by Henryka Bochniarz, Chairwoman of the General Council of the Lewiatan Confederation, Maciej Witucki, President of Lewiatan, Leszek Bonna, Deputy Marshal of the Pomorskie Voivodeship, Jerzy Buzek, Chairman of the EFNI Program Council, and Jacek Karnowski, Mayor of Sopot. The 12th edition of EFNI featured six thematic paths: Europe in Global Markets, Green Change of Europe, the Future of Europe, the Digital Transformation of Europe, Open and Diverse Europe, and Poland Before the Election. During EFNI, the Lewiatan Awards were presented to this year’s winners: Jan Polcyn, Dawid Leśniakiewicz, Sebastian Langa, Piotr Pełka, Radosław Kulesza, Jacek Karnowski, Barbara Labuda, the Union of Ukrainian Entrepreneurs and Anita Błaszczak. Additionally, the results of the “EqualWeight” [Balance] Pro-Woman Company of the Year” competition, organized by the Kulczyk Foundation, the Women’s Congress, and the Lewiatan Confederation, were announced. The winning companies were Organon Polska and Standard Chartered Bank. Special prizes were awarded to the Robisz.to Association and the Kraków City Hall. In the Sopot Declaration, the participants emphasized their expectations for the new Polish parliament, government, and president. They called for swift action to repair relations with the EU, uphold EU treaties and court rulings, respect democratic principles, and engage in rational political dialogue. EFNI in Sopot attracted over 1,400 participants from more than a dozen countries.

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EVENTS

The WBJ relives or looks forward to the most important events in the world of business and economy

KEY TAKEAWAYS FROM PRECOP 28, A TWO-DAY CONFERENCE PRECEDING COP28 UAE Fighting climate change means fighting for ourselves because the planet will be fine without mankind. Let's use this kind of egoistic approach to our advantage," said Jerzy Buzek during PRECOP 28. The Member of the European Parliament and Poland's former Prime Minister's opening remarks set the tone for the conference, the second edition of which was co-organized by UN Global Compact Network Poland and the PTWP Group. The on-site event, held at the International Congress Centre in Katowice, attracted 1,300 participants, while 2,500 people attended online. The primary goal of the conference was to deliver Europe's unified statement before COP28 in the UAE. The conclusions, recommendations, and guidelines arising from PRECOP 28 will be incorporated into the "White Book," with its publication serving as a catalyst for initiating a global debate on the subject.

was Sanda Ojiambo, Assistant Secretary-General of the UN and Executive Director of UN Global Compact, who emphasized that the climate crisis is already exerting pressure on economies. Mohamed al Harbi, UAE Ambassador to Poland, underscored the significance of the UAE's transition towards a sustainable and low-emission economy. During the inauguration of PRECOP 28, the floor was also given to Tim Lardner, Director of the Multi-Country Office UNOPS, who asserted that war constitutes a crime against climate and the environment.

A Broad Scope of Subjects

Emission-free World – Time to Accelerate

The agenda of PRECOP 28 encompassed crucial topics pertaining to environmental protection, all built upon the principles of sustainable growth and zero emissions. The panels served as a platform for discussions on energy transition, e-mobility, decarbonization, multi-sectoral sustainable growth, and ESG.

Such was the slogan that marked the beginning of the event's first session. It opened with keynote speeches delivered by special guests. Among them

To learn more about the findings of PRECOP 28, go to www.precop.pl

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