Warsaw Business Journal Sept - Oct 2024 #85

DRIVING GROWTH

8

16

Cover Interview

Wojciech Szafran, General Director of Raben Logistics Polska

Interview by Morten Lindholm

22

Interview

Risk Management at ING Hubs Poland – Paweł Holnicki-Szulc, Konrad Wypchło, Aneta Ptak-Chmielewska, Łukasz Światowski

Interview by Morten Lindholm

28 Poland: Europe’s Future

Karolina Borkowska of Gardens by Fort – in Fort Mokotów

Interview by Kevin Demaria

Robert Golnik, IT Senior Development Manager with FP&A expertise

Enduring Confidence in Central Europe

36

Feature

Poland's Rising Purchasing Power By Sean Reynaud

41

Lokale Immobilia

News

Monika Szelenberger, Head of Leasing & Asset Management and Robert Włoszek, Operational Director at Adgar

Interview by Beata Socha

New ESG regulations Colliers 51

Tech

News

Data Walk’s Paweł Wieczynski

Interview by Sean Reynaud

Olga Adamkiewicz, CEO of Artgeist

Interview by Sean Reynaud 59

+ Style

Kasia Baumiller, Architect

Interview by Kevin Demaria

PUBLISHER'S NOTE

THE LEADER

3 personal reflections and learnings from 2024 so far

1. Work-Life Balance: Economic growth in urban Poland has led to a stronger emphasis on work-life balance, with employees increasingly prioritizing quality of life. The tight labor market empowers workers to demand better conditions, reflecting the country’s maturing economy.

2. Foreign Investment: Poland's strong economic performance attracts significant foreign interest. Affluent Poles are key targets for lifestyle brands offering opportunities abroad, while global corporations invest in Polish talent, driven by the country’s steady GDP growth and EU fund benefits.

3. Technological Adoption: Despite the hype around digitalization, AI, and robotization in 2024, the anticipated revolution is progressing slowly. Poland’s technological adoption remains gradual, with the full impact likely delayed as infrastructure and investment catch up.

It’s great to be optimistic about Poland, but let’s also consider what might slow down this momentum.

About a year ago, Warsaw Business Journal launched the section ‘Poland: Europe’s Future.’ We are pleased to see that our predictions seem to be coming true.

It’s particularly rewarding to meet and interview business leaders from prominent companies in Poland and hear how ‘Created in Poland’ is gradually replacing the ‘Produced in Poland’ era. In this issue, we feature several interviews with remarkable Polish leaders who have built great teams and achieved success for their companies in recent years.

Poland's economy is showing strong resilience and growth, positioning it as a leader among EU countries. In the second quarter of 2024, Poland's GDP increased by 1.5% quarter-on-quarter, the highest growth rate among EU countries, according to Eurostat. Year-on-year, GDP grew by 3.2%, surpassing expectations.

This growth is notably higher than in the first quarter and stands out compared to major EU economies, including Germany. Poland's labor market also reflects the strength of its economy, with the unemployment rate dropping to a historic low of 2.6% in June 2024. This low unemployment rate, among the lowest in the EU, is driven by increased demand across sectors like manufacturing, construction, and services. However, this tight labor market presents challenges, particularly with skilled labor shortages, which could constrain future growth if not adequately addressed.

Credit Agricole Bank forecasts that Poland's inflation rate will remain above 3.5% until at least August 2025, driven by persistent economic pressures such as strong domestic demand, wage growth, and ongoing supply chain disruptions. The core inflation rate remains particularly stubborn, with a more significant decline expected in the latter half of 2025.

Additionally, Poland's economic outlook for 2024-2025 has been revised downward by Credit Agricole, with GDP growth for 2024 now expected at 2.3%, down from 2.8%. This revision reflects external factors, including a deteriorating economic environment in the Eurozone and declining investment levels. The forecast for 2025 has also been lowered from 4.6% to 3.5%, with inflation and slow wage growth anticipated to dampen economic activity.

We are entering a very exciting and important second half of 2024, and we will be closely covering all the major ups and downs in the economy and business. We update our website www.wbj.pl daily with news and insights, so don’t miss a chance to stay informed. We also highly recommend subscribing to our daily newsletter, Poland AM. Please contact us for an offer for your company.

We wish you the best of luck with the rest of 2024 and would be happy to hear from you about story ideas or your company’s successes.

MORTEN LINDHOLM

ON THE COVER

Wojciech Szafran

General Director of Raben Logistics Polska

A graduate of the Poznań University of Technology and MBA studies in Logistics & Supply Chain Management at Poznan School of Logistics (WSL). He began his adventure with the Raben Group in 2004 as an intern. From an apprentice, he quickly became a specialist and then a sales department coordinator. In the following years, he gained experience in managerial positions, including international distribution, before becoming Regional Director in 2016. Since 2023, he has been the General Director and Vice-President of the Board of Raben Logistics Polska. He is also responsible for Raben Group companies in the Baltic States. Privately, he is a happy husband and father of three children, and is very interested in football.

Exclusive Interview on page 18

Robert

Włoszek

Monika Szelenberger

Head of Leasing & Asset Management

Monika Szelenberger is Head of Leasing & Asset at Adgar Poland, overseeing leasing, commercialization, and marketing for the company’s portfolio. She contributes to Adgar’s long-term investment strategy, including property acquisitions and the development of new concepts like BeYourself and Flexi Lease. With 15 years of experience in commercial real estate, Monika previously worked at Cushman & Wakefield and DTZ, advising office tenants on relocation, lease renegotiation, and space optimization. She has also guided global corporations in establishing operations in Poland.

Interview on page 44

Operations Director of Adgar Poland

Robert Włoszek is the Operations Director at Adgar Poland, where he oversees facility management, maintenance, and the expansion of the company’s buildings. With over 12 years of experience in commercial real estate, he previously worked at Colliers as Technical Quality Manager, providing technical support and auditing. Robert also served as a Facility Manager at Adgar Poland, leading technical services. He holds an engineering degree from Warsaw University of Technology and a postgraduate degree in Real Estate Management. Robert is experienced in LEED and BREEAM building certification processes.

Interview on page 44

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

Kevin Demaria Art Director kdemaria@valkea.com

Editor Sean Reynaud

Contributors Beata Socha

Sales Katarzyna Pomierna kpomierna@valkea.com

Print & Distribution Krzysztof Wiliński dystrybucja@valkea.com

Event Director, Valkea Events Magda Gajewska mgajewska@valkea.com

e-mail: wbj@wbj.pl WBJ.pl

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WarsawBusinessJournal @wbjpl

SEP 3-5 2024 | KARPACZ

Times of New Leaders: Shaping the Future Together

IN REVIEW

MARRIOTT ENDS LICENSING AGREEMENT WITH WARSAW'S LIM CENTER

Marriott International has ended its licensing agreement with LIM Center, the iconic skyscraper opposite Warsaw Central Station, where its logo has been displayed since 1989. Despite the brand change, LIM Center assures that the hotel will continue to operate under the same standards and conditions.

The LIM Center features two underground levels, a three-story podium, and a 42-story tower totaling 86,000 sq. m. The building houses office space, retail areas, and a hotel with about 520 rooms in the upper tower.

Marriott operates around 20 hotels across Poland under various brands. The reasons for Marriott's decision remain undisclosed.

ECONOMY

Poland’s Economy Currently the Fastest-Growing in the EU

In the second quarter, Poland's GDP increased by 1.5 percent, the highest growth among EU countries for which data was collected by Eurostat. This positions Poland as the undisputed leader in terms of accelerating economic growth.

But it’s not just the seasonally adjusted data that is surprisingly strong. According to GUS (Statistics Poland), GDP in the second quarter increased by 3.2 percent compared to the same period last year. This is higher than in the first three months of the year and significantly exceeds market expectations, which government representatives commented on.

“Everyone is surprised by the growth of the Polish economy in the second quarter of this year. It was supposed to be 2.7 percent, but it's 3.2 percent. We are outperforming all major EU countries, and we're beating the Germans by a wide margin,” Prime Minister Donald Tusk wrote on the X platform.

LABOR Confederation Lewiatan Warns of Impacts of Equalizing Contracts

Poland’s labor market is facing potential major changes as the government proposes to equalize the legal status of various employment contracts, including full-time and civil contracts. The aim is to ensure fair treatment for all workers by addressing disparities in job security, social benefits, and taxation.

However, the Confederation Lewiatan, an employers’ association, warns that this could increase labor costs, particularly for SMEs, reduce market flexibility, and potentially lead to job losses or deter investment in Poland due to the higher costs and reduced flexibility.

INSURANCE

Audits at PZU revealed significant scope of irregularities

The audits of PZU and PZU Życie revealed significant irregularities, according to PZU’s press office. These audits, covering various business, investment, marketing, HR, and legal aspects, are internal documents initially for company officials' review. Allegedly, PZU Group’s bank, Pekao, sponsored entities linked to PiS with PLN 23 million. Other irregularities included high consultancy costs. The Ministry of State Assets highlighted that not all state-influenced company audits are complete, focusing on outsourcing, legal proceedings, and cybersecurity.

Euro MPs from KO accused PiS of using PZU funds for political campaigns, calling for audit results to be forwarded to law enforcement.

INDUSTRY

Possible cuts at Grupa Azoty as PLN 10 bln debt grows

Grupa Azoty has established a team to optimize employee compensation costs, aiming to standardize solutions across the company, according to CEO Adam Leszkiewicz. Unions fear the company, with nearly PLN 10 billion in debt, may go bankrupt. Currently, different labor agreements apply in each subsidiary, and the goal is to create unified solutions to adapt costly provisions to the financial situation. Initial cost-cutting measures targeted management, reducing organizational units, and managerial positions.

Intense negotiations with unions are ongoing to possibly suspend certain costly compensation elements. The company faces significant financial challenges, reporting over PLN 4 billion in losses over six quarters.

MEDICAL ZUS inks PLN 43 million IT deal

The Social Insurance Institution (ZUS) has signed a PLN 43.5 million contract with Comarch for software maintenance of its Comprehensive ZUS IT System. The deal covers service for Oracle Tuxedo and Oracle Salt software for two years, with an option to extend for an additional year at PLN 21.5 million.

According to ZUS spokesman Paweł Żebrowski, the contract is vital for maintaining the security and functionality of ZUS’s core IT systems. The agreement includes handling service requests, providing updates, and ensuring system reliability. The updated IT system will support new services, such as the ability for entrepreneurs to apply for social insurance contribution exemptions starting November 1.

ECONOMY

Rapid Growth of pawnshops in Poland highlights economic struggles

The number of pawnshops in Poland is growing rapidly, with a new establishment opening every three days, according to a report by Business Insider Polska. The surge in pawnshops is driven by increasing demand for quick cash solutions amid economic uncertainty and rising living costs. As traditional banks tighten their lending criteria, more people are turning to pawnshops as a convenient, albeit expensive, way to access short-term loans.

The popularity of pawnshops is also fueled by the fact that they do not require a credit check, making them accessible to individuals with poor credit histories. However, the high interest rates and fees associated with pawnshop loans have raised concerns among financial experts, who warn that these quick cash solutions can lead to a cycle of debt.

The rapid expansion of the pawnshop industry highlights the financial struggles many Poles are facing, with a growing number of citizens unable to meet their financial needs through conventional means.

ECONOMY NBP management board member: GDP growth not to exceed 3% y/y in ‘24

Artur Soboń, a board member of the National Bank of Poland (NBP), expects the economic growth rate to be around 3% of GDP this year. He attributes the potential failure to exceed this growth rate to household spending caution. Soboń highlighted that Polish households are rebuilding savings and that geopolitical situations, such as the war in Ukraine and the Middle East conflict, are dampening consumer demand.

According to the NBP's inflation projection, GDP growth will reach 3%

in 2024, accelerate to 3.8% in 2025, and slow to 3.1% in 2026. Year-onyear growth rates are projected to be 2.9% in Q2 2024, 3.1% in Q3, and 4% in Q4. The Central Statistical Office will release the quick GDP estimate for Q2 2024 on August 14, with market consensus predicting a 2.8% y/y increase.

REAL ESTATE

Housing prices outpace wages in Poland

Wage growth in Polish provincial cities has not kept pace with rising housing prices, worsening housing affordability. In the past year, the price of real estate in Poland increased by 18%—a rate unmatched in any other EU country. Major

cities like Warsaw, Olsztyn, Kraków, and Toruń have seen the greatest decline in housing affordability.

The rise in housing prices, driven by factors like the Kredyt 2% program which boosted demand amid limited supply, has led to significant increases in market prices while construction activity has slowed. As a result, average wages are insufficient to purchase even a single square meter of property in many cities. In Warsaw, for example, buying a 50-square-meter apartment would require almost eight years of gross salary, highlighting the severe affordability crisis in the housing market.

ENERGY

EY: Poland dropped to 18th place in attractiveness for renewables investments

Poland dropped to 18th place in the EY RECAI ranking for renewable energy investment attractiveness, with the energy sector transformation estimated to cost PLN 1.25 trillion by 2050. Despite global green energy investments of $1.8 trillion and 507 GW of new capacity, the world is far from the COP 28 goal to triple renewable energy by 2030. Europe's energy networks need significant investment, doubling to €67 billion annually by 2025-2050. Poland must modernize its power sector and enhance energy storage.

EY predicts a fourfold increase in global battery storage by 2030, making early energy storage investments in Poland particularly attractive due to market conditions and EU funds.

ECONOMY

Goldman Sachs: inflation lower than expected by NBP, despite energy costs

Goldman Sachs predicts that consumer inflation in Poland for this year and 2025 will be lower than the National Bank of Poland's (NBP) forecasts. They expect the CPI inflation to be around 4% y/y at the end of this year and 3% at

BANK PROFIT

27.6%

profit rise for Polish banks from January-June 2024, or PLN 20.12 bln (KNF) [Polish Financial Supervision Authority]

PLN 2.936 billion

net profit of Bank Pekao SA in first half of 2024

4% y/y net profit

19.9%

bank Pekao’s return on equity

USED AUTOS

PLN 9,500 m/m

price drop in July

PLN 31,400

average price of used cars

248,950

number of available used cars for sale

165,000 km median mileage

10 years

median age of used cars sold (AAA auto report)

LABOR

PLN 4,626 gross and 30.2 PLN hourly

council of Ministers draft proposal for minimum wages starting in January 2025 (300gospodarka.pl)

EXPORTS/IMPORTS

-6% y/y or €27.1 billion

drop in exports (y/y)

€191 million, down from €447 million

deficit in trade balance in June compared to May (NBP) 0.2% or €27.4 billion drop in imports

the end of next year.

Goldman Sachs notes that household energy price increases were lower than expected, though risks remain for future increases. They forecast inflation of 4% at the end of 2024 (compared to NBP's 5%) and 3% at the end of 2025 (compared to NBP's 4.1%). The Central Statistical Office (GUS) reported July consumer inflation at 4.2% y/y. NBP's July projection estimates consumer inflation to peak at 6.3% in Q1 2025 before decreasing to 3% in Q1 2026.

FINANCE

Loan fraud attempts worth PLN 79.6 mln occurred in Q2

In Q2 2024, attempts were made to fraudulently obtain 3,230 loans totaling PLN 82.9 million using stolen identities, as reported by the Polish Bank Association (ZBP) in their 58th InfoDOK report. Statistically, 35 attempts were made daily, with the highest occurrences in the Dolnośląskie, Śląskie, and Mazowieckie regions.

During this quarter, 44,418 documents were flagged in the Documenty Zastrzeżone system, bringing the total to 2.56 million. The total amount of attempted loan frauds was PLN 79.6 million, a 58% increase from the previous year but still below the 16-year average of PLN 90.1 million. Despite a record number of attempts, only 6 cases involved amounts over PLN 1 million. Daily, PLN 875,000 was targeted in identity theft.

The Documenty Zastrzeżone system is a national database of stolen and lost documents, protecting against identity fraud.

DEFENSE

Huta Stalowa Wola signs $1.2 bln agreement to produce 48 missile launchers

On August 12, 2024, Huta Stalowa Wola signed a contract with American defense giant Raytheon for the production of 48 M903 missile launchers. The agreement, valued at $1.23 billion, is part of the second phase of Poland's Wisła air defense program.

The M903 launchers will enhance Poland's Patriot air and missile defense systems. The deal signifies increased collaboration between Poland and the U.S. in defense technology. This production, set to begin in 2027 and extend through 2029, underscores Poland's growing military capabilities and strengthens NATO's eastern flank. Polish officials and U.S. Ambassador Mark Brzezinski highlighted the significance of this partnership and the advanced technology involved.

ENERGY

PGNiG TERMIKA to modernize, increase natural gas consumption

PGNiG TERMIKA S.A. is implementing a transformation plan to achieve full

Quote of the month

climate neutrality by 2050, driven by strategic goals and increasing legislative requirements. Key actions include modernizing the Siekierki plant to use more natural gas, building new gas and heat pump facilities, and reducing coal dependency. The company plans to invest PLN 9 billion by 2030 to cut CO2 emissions by at least one-third compared to 2019 levels. Collaboration with government and stakeholders is crucial for navigating regulatory challenges and securing necessary approvals.PGNiG TERMIKA also aims to enhance the use of renewable energy and biomass in its operations.

HEAVY INDUSTRY

President of PKP Cargo buys company shares, increasing rates

Marcin Wojewódka, acting CEO of PKP Cargo, has recently purchased more shares of the financially troubled company, as reported in an obligatory announcement. Over the past month, PKP Cargo’s stock increased by 25%, with Wojewódka buying 1,000 shares at PLN 19.2 each. He previously acquired 6,000 shares in July, 12,000 shares in June, and 2,000 shares in May at lower prices. Despite the recent stock rise, PKP Cargo is still struggling financially, with a 34% year-to-date increase but a 40% decline over five years. The company faces significant challenges, including political disputes and planned layoffs affecting up to 30% of its workforce.

“Poland has one of the highest wholesale rates for electricity in the EU, which is mainly due to our dependence on coal”

Robert Tomaszewski, head of energy department of Polityka Insight.

Cover

Interview:

Wojciech Szafran

Driving Forward

Wojciech Szafran, General Director of Raben Logistics Polska, emphasizes innovation, sustainability, and team-driven growth, expanding infrastructure, improving processes and meeting environmental goals to maintain a competitive edge in the logistics industry.

INTERVIEW BY MORTEN LINDHOLM

WBJ: Can you provide an overview of Raben Logistics Polska and share your journey within the company?

Wojciech Szafran: Raben Logistics Polska is the largest company within the Raben Group and a leader in the logistics industry in Poland. With 3,800 employees, various warehouses covering an area of 560 thousand m², and approximately 5,000 modern means of transport at our disposal, the company offers services in domestic and international distribution as well as comprehensive logistics services, including value-added services and e-commerce logistics.

My journey at Raben began 20 years ago when I was looking for student internships. Raben accepted me as an apprentice, and I must have done well because I was offered a full-time job shortly after the internship. So, I started in the sales department as a specialist and later as a coordinator. Then, I moved to the international distribution department, where I worked with my teammates on developing international groupage connections, first as a manager and later, after a few years, as regional director.

It was nice to see Raben Logistics Polska, and the entire Raben Group, growing and entering new markets. It was even nicer being a part of this growth and helping achieve milestones. For me, one such milestone was, in 2016, getting promoted to Regional Director of one of the largest operational regions in our company. This new position brought new responsibilities and challenges that prepared me for the next big steps–becoming General Director and then Vice-President of the Board in 2023. Now, I do my best to meet expectations and continue developing the company.

Given your history with Raben Logistics Polska, how has your experience shaped your approach to leading the company, and what achievements are you most proud of?

As I mentioned before, my journey at Raben was from internship to head of the company. I had the opportunity to get to know various departments from the inside. Because of my experience, I know firsthand about many of the everyday problems logistics companies face. I was also very lucky to meet people on my professional path who were willing to share their knowledge and experience with me. Perhaps this is also specific to Raben. We have “People with Drive” everywhere, no matter if they’re a warehouse worker, a driver, an accountant, a manager or a director. It’s true that I wouldn’t be here without these passionate people whose support, wisdom, and inspiration were and still are invaluable. Together with them, I want to continue developing our company by introducing innovative solutions, improving processes and building a competitive advantage for our customers.

I’m proud of the fact that this year we managed to finalize several important investments. For instance, extensions of our cross-dock terminals in Cholerzyn and Kalisz, a brand new cross-dock terminal in Bialystok and two new contract logistics centers. One investment is a warehouse we opened in Poznan in July with an area of approximately 44,000 m². The second, even larger investment, was in Wiskitki, with 110,000 m² of warehouse space that we’ll manage. Both are modern and environmentally friendly facilities with sustainable solutions, meeting the requirements for an excel-

Cover Interview: Wojciech Szafran

lent BREEAM certification level, as well as FM Global's stringent sustainable construction requirements.

I’m also proud of our ability to fulfill Raben Group’s ESG strategy. We work in a business sector responsible for almost 20% of global CO2 emissions, so we’ve set ourselves goals that revolve around two commitments. Firstly, in 2021, Raben Group signed a five-year loan agreement linked to sustainable development (Sustainability Linked Loan—SLL) for EUR 225 million, coordinated by seven banks. The SLL loan margin depends on Raben meeting conditions determined by five key performance indicators (KPIs) in the areas of ESG for the road transport and logistics sector.

Three of these indicators are strictly environmental. The first is

a 30% reduction in emissions at our warehouse and office infrastructure over the next four years, i.e., mainly Scope 2 of the carbon footprint. Our company has already achieved a 67% reduction.

The second goal is to reduce CO2 emissions resulting from transportation by 10% by 2025. However, by 2023 we had already seen a 7% reduction.

The third goal concerns the replacement of the fleet; we have committed to meeting Euro V and VI standards by 2025. About 96% of our fleet (our own and the carriers we cooperate with) exchange our fleet last year, which was a significant investment. Now we are replacing Euro V with Euro VI.

The fourth commitment concerns diversity and the presence of

“It’s our ‘People with Drive’ who fuel our success and innovation at Raben”

women in management positions, which has also been achieved. The fifth goal, verifying our approach to sustainable development in all other aspects, is to undergo the EcoVadis assessment.

What external and macroeconomic factors have the most significant impact on the logistics industry, and how is Raben adapting to these influences?

After slowing down in 2023, economic growth is expected to gradually rebound this year, supported by strong consumption and investment. This should positively impact our industry. On the other hand, while inflation is forecast to decline, price pressures will remain elevated because of growing domestic demand, rising labor costs and the unfreezing of energy prices. Rising costs pose a challenge to every company and industry.

It is worth remembering that our industry operates on low margins and requires high investment outlays. High labor costs and new burdens affecting transport and logistics companies mean that companies such as Raben are strongly focused on cost optimization. We are constantly looking for solutions to provide services even better and more efficiently. One of our company's values is entrepreneurship. Additionally, we place great emphasis on process improvement. For years, we have successfully changed our culture to be more engaging and lean: “Better every day.” This encourages each employee to try to improve their workplace by using resources wisely. Ideas for improving the quality of services and optimizing processes, and therefore costs, for both us and the customer, often come from the “first line” of warehousing and transportation.

We also work with our customers individually whenever possible, e.g., organizing joint lean management workshops and seeking optimization together. We believe that through such cooperation, we can achieve better results and greater satisfaction for both our clients and employees.

Raben Group is taking a number of actions aimed at saving energy and reducing costs to deal with rising operating costs. For instance, at the design stage for warehouses, we think about energy efficiency. The solutions currently used by Raben include, among others, the use of energy from renewable sources, the use of energy-

saving LED lighting, more efficient heating, ventilation and air conditioning (HVAC) systems, and the implementation of intelligent sensors and automated lighting, heating and cooling systems, which allows for better control and optimization of energy consumption. There are many more solutions I’ve not outlined here.

How would you describe the current state of the logistics market in Poland, and what are the main competitive challenges you face?

The logistics industry is characterized by enormous dynamics of change and significant unpredictability. In recent years, we have faced numerous challenges, from decreasing driver availability to global supply chain disruptions. Our industry must consider further cost increases in 2024, especially in terms of wages. At the beginning of this year, the minimum wage increased, but the wage increase had already been forced by the Mobility Package. And that's not the end of expenses. Further increases are also noticeable in road tolls, for example, in Germany, which increased by 83% due to the inclusion of the CO2 emission fee. We’ll therefore continue to operate in a competitive environment. However, it’s worth looking at these challenges as opportunities to develop and improve our services.

Some things are beyond our sphere of influence, but at the same time, we have full control over how we react to them. Our decisions, innovations, flexibility, and adaptability are crucial to our success and that of our customers. Whether we are facing economic hardship, market changes, or other challenges, our actions and approach make a huge difference. Effective planning, appropriate adjustment of business strategy, investments in employee development, and responses to changing customer needs allow us to shape our future even in a dynamic and unpredictable environment. Despite many challenges, Raben sees more opportunities than threats currently. For us, the key is to ensure high quality and stability. We strive to be a logistics partner for our clients with a flexible approach that responds quickly to changes and on which they can always rely.

Naturally, in the context of constant change, the importance of automation, digitalization, and continuous process improvement

is undeniable. This is especially important in logistics where each consignment relies on an intricate web of people, tariffs, constantly shifting costs, and dynamic market conditions. With so many variables, it’s no wonder that Raben explores automation and RPA, thanks to which, in a year, automation has completed the work equivalent of 302 full-time employees within a month. In the same period, automation saved the entire Raben Group 78,815 days of time and over EUR 6 million a year. It’s clear that these initiatives have helped us achieve greater operational efficiency and optimal costs.

Moreover, the role of sustainable development cannot be underestimated. We’re all aware of the impact that our industry has on the environment, hence the need to take action to protect it. For Raben, ecology is also very important. By saving natural resources, measuring, reporting, and reducing greenhouse gas emissions, we work for the common good, the future. Out of concern for the natural environment, we’re gradually eliminating paper from our processes through projects such as Order-2-Cash or Paperless. We’ve also invested in modern means of transport (as I mentioned before), and have we engaged our suppliers and carriers in this modernization.

What are some key factors that have contributed to Raben Logistics Polska's growth and success over the years?

Raben is a stable organization, independent of changes in the capital markets. The family nature of our company allows for quick decision-making as well as the ability to build long-term development plans that are not dependent on the composition of the Management Board. We also strive to attract the most talented employees, retain them, and provide them with various opportunities for personal growth.

The organization is constantly developing, improving its procedures and investing in modern technologies. The company is aware that investments in the transport network and warehouse infrastructure are inextricably linked with activities aimed at optimizing processes and IT systems, which translates into high-quality customer service.

“Raben’s commitment to innovation and sustainability drives our leadership in logistics”

For many years, we have offered our customers logistics with a human face, and we try to be consistent in this. Our experienced and committed team is focused on exchanging experiences and achieving goals together. One of our goals is to support customers and take care of the entire logistics process. Therefore, regardless of the innovations implemented, we continue to use the solution that has worked well at Raben since the company was founded. We have close, daily contact between customers and our service representatives. People with passion, who, by taking care of customers' needs, proactively solving their problems or simply answering the phone, have become the hallmark of Raben. And this is what sets us apart. Partnership and trust are part of this style of cooperation, which in many cases has been going on for years. In business, we are guided by, among others, a fair play approach, because we believe that relationships based on integrity build a better tomorrow.

We also care about our subcontractors and drivers. Since 2019, we have been a member of the CSR Europe Responsible Trucking initiative. This initiative brings together the main representatives of the TFL industry in Europe with the goal of improving working conditions for truck drivers. The outcome of our work is the “Social Standards in Transport,” which outlines healthier working conditions for drivers. In 2021, this standard was officially communicated and we declared that by the end of 2024 we will have established a safer working environment. In addition, we run an internal “Drive the Driver” program, which includes many initiatives for both promoting driving as a profession and improving the daily life of drivers working for Raben.

What are your strategic goals and aspirations for Raben Logistics Polska in the near future?

Comprehensive services are important to us. From the storage of goods through VAS production (co-packing, co-manufacturing) to timely delivery. All this is to make it easier for our customers to manage their goods and ensure proper and quick distribution. One of our priorities is to provide service at the highest possible level. To achieve that, we plan further investments in new warehouses

as well as cross-dock facilities, fleet exchange and further automation and digitalization of our processes. However, reacting to the economic situation and customer needs, and considering Raben Group acquisitions and our investments, we will continue to focus heavily on developing international connections and systematically launching new lines. Currently, Raben offers over 600 international groupage connections in Europe, including over 120 between Poland and Germany, where we also have our own groupage network. We’re also developing connections with the Czech Republic and other CEE countries, as well as with other European countries. Through investments in new lines, Raben reaches more places in Europe, not only to large but also smaller economic centers. Our

customers appreciate this because such comprehensiveness and scale of operations mean not only better distribution options but also time savings and the ability to focus on the development of their own business while Raben, their logistics partner, takes care of the rest.

I need to emphasize again that what distinguishes us, and allows us to be even more competitive, is our team, our People with Drive. It’s an apt description that defines their attitude. This drive is energy and a passion to act. It is the sum of the unique qualities each of us has and the teamwork that makes us stronger. And it is thanks to them that we are where we are—ready for future challenges. Together we create the future of logistics.

BUILDING THE INTERNATIONAL CENTRE OF KNOWLEDGE

The Risk Hub at ING Hubs Poland drives growth in risk management through regulatory modelling, AI, data solutions, and ESG models, setting industry benchmarks in innovation, sustainability, and global collaboration.

INTERVIEW BY MORTEN LINDHOLM

Łukasz Światowski

Konrad Wypchło

Paweł Holnicki-Szulc

Aneta Ptak-Chmielewska

Paweł Holnicki-Szulc:

Cross location collaboration, milestones, hot topics

Reflecting on five transformative years, ING Hubs Poland’s Risk Hub has grown from a small project to a thriving international hub. It now excels in end-to-end risk solutions, data management, and modeling.

It has been five years since the launch of Risk Hub at ING Hubs Poland. Can you tell us about the journey, the development, and the challenges over the years?

We initially started mid 2019 with 50 people and an exploratory project. ING Hubs Poland at that moment were mostly technology focused, having limited risk modelling experience.

Before we started, we investigated various global locations to determine where such services could be developed. Through market analysis, we made sure we were well-prepared. But our primary goal was to build trust by demonstrating our capabilities, by recruiting the right talent and delivering on services that met with internal partners’ needs within regulatory requirements.

Since then, we’ve grown rapidly, and now boast a workforce close to 400 and from over 30 countries, creating something that’s truly international. We’ve diversified our services to encompass data management, tooling, modeling and validation. One of our key strengths is our ability to provide end-to-end solutions, which I think sets us apart.

We’ve built strong relationships with our Headquarters in the Netherlands, but also with various global units, which is reflective of our reputation overall. What’s more, the expansion has made it necessary to restructure, to organize in a way that is both effective and fast-evolving.

It’s our fifth anniversary this year, and so when I look back the recognition we’ve received, the eagerness of other global units, who were happy to work with us, it is obvious we were doing it right. The quality of our people and the

services has just been outstanding.

Looking forward, what is your vision for the future of the Risk Hub and the business you will develop, especially in the context of a fast-changing external environment?

Our primary goal now is to take more ownership of the services and products we develop. Our aim is to increase our influence over both what we do and how we do it.

We’re also expanding our collaborative efforts with teams in the Philippines and Turkey, which aligns with ING's global sourcing strategy.

For us it’s important to become a center for knowledge transfers. With our international experience and diverse operations, we are well-positioned to provide training and development programs across ING worldwide. This includes ensuring high-quality models and well-structured data, but also sharing knowledge and leadership within the organization.

In the future, we plan to boost our global mobility by increasing short and long-term assignments to different locations. That way we can enable local talent and improve our global skills.

How does Risk Hub align its strategic vision with the broader objectives of the ING Group? Is innovation driven from within the Risk Hub or does it primarily come from requests by the Group?

The risk domain is crucial for any organization, especially financial ones, and every employee at Risk Hub plays a part in risk management. Large projects, such as developing and validating rating systems, are key focuses.

Risk Hub is essential to this process, meeting the expectations of stakeholders, the management board, and regulators.

Innovation is driven both internally and through group requests. As one of the largest modeling centers, Risk Hub demonstrates significant scale and impact within ING. We continue to grow (although at a lower tempo), transitioning from simple, labor-intensive tasks to knowledge and expertise intensive work. This shift emphasizes our investment in talent and expert knowledge, which will drive our future development.

You employ many experts from different nationalities. Is it still feasible to find the necessary talent in Poland, and what type of work model do you apply?

Finding the right talent is challenging, especially as we seek individuals with strong data skills and an understanding of financial regulations. Our international aspect aids in this, as we employ colleagues from Asia, South America, and Africa. The reputation we’ve built over five years helps attract talent willing to make bold moves to join us in Poland.

International employees bring diverse perspectives and cultures, enriching our team and offering new ways of working. Integration is key. We ensure all employees feel part of the organization and have a platform to voice their needs through different initiatives. We have, for example, our dedicated Diversity Group – Culture Group, which implements initiatives aimed at supporting employees from other countries during the onboarding process and throughout their career journey in Poland.

Overall, our employee value proposition centers on creating a truly international environment in Poland, where diverse talents can thrive and contribute effectively.

Konrad Wypchło:

Data quality assurance: Risk Hub’s five year journey

From exceeding initial team size predictions to coordinating global teams, the Risk Hub at ING Hubs Poland has achieved a remarkable growth. Embracing rigorous data regulations and leveraging AI for enhanced security and efficiency, the Hub sets benchmarks in the financial sector. The development of ESG models further demonstrates its commitment to innovation and sustainability.

You were part of the opening of the Risk Hub. How have your ambitions and visions for the project been fulfilled over the past five years?

We exceeded everyone's expectations, including mine. Initially, we expected a team of about 80-100 people, but now we have more than 400. This growth was driven by our successful project deliveries. Over the years, we’ve taken on a more global role, not just acting as an outsourced contractor. We now have product and expert leads in Poland, and we coordinate between international teams, including those in the Philippines, Turkey, and central ING Hubs.

We expect even more global roles in the future, including Global Tribe Lead for the entire Risk Data domain. This progression underscores our significant contributions and the successful fulfillment of our initial ambitions.

Banks and financial institutions are under stringent compliance regulations to ensure data quality and protection related to customers and systems. How does Risk Hub ensure it meets these demands and adapts to evolving regulatory requirements?

Risk Hub operates within a rigorous regulatory environment, particularly focused on credit risk and regulatory capital models, where 80-90% of our work is driven by regulation. Our approach to compliance is multifaceted and begins with robust data governance frameworks. We ensure comprehensive understanding and management of data handling steps, supported by strong data quality controls. These controls are continuously evolving in order to meet changing regulatory expectations, particularly those from the European Central Bank (ECB), which emphasizes data quality and correction of issues that need remediation.

We structure our teams to integrate regulatory compliance seamlessly into our operations. This involves designing processes that embed regulatory requirements by default, rather than as an afterthought.

Investment in our team's skill set is crucial. We employ individuals who not only have technical expertise but also a deep understanding of regulations. These experts can translate complex regulatory requirements into practical steps we can follow within the Risk Hub. Furthermore, it is essential to have the ability to communicate well in our field, particularly in interactions with regulators. Concise and precise communication helps prevent misunderstandings and ensures we comply without issue in our operations.

ING adheres to the highest global regulatory standards, including those of the ECB, Polish standards (KNF), and all requirements from markets like the US. This means our operations must meet or exceed all applicable standards. Risk Hub ensures effective risk management and upholds all regulatory standards across jurisdictions.

What are your observations regarding the development of data and cyber security over the past five years? Are AI tools and systems enhancing the bank's ability to manage these aspects more effectively? Data and cyber security have become increasingly important, particularly regarding data leakage protection and data access controls. While Risk Hub primarily deals with anonymized or non-personal data, there has been a significant emphasis on tightening rules for accessing data, even extending to internal documentation and preventing

insider trading. This heightened scrutiny ensures that sensitive information about performance and client data remain protected.

AI tools, especially in cybersecurity, have seen a bump in interest. However, the broader application of AI, particularly generative AI, is more complex. Generative AI is treated as anew model type, introducing unique risks that need to be integrated into the bank's overall risk management framework.

We are exploring several AI-driven initiatives to enhance our data management capabilities. One promising area is using AI to understand and map data structures, data flows, and attribute definitions, helping our experts build a complete knowledge base. This can streamline data sourcing and transformation processes.

In summary, while we have implemented stricter data security measures and are leveraging AI for internal efficiencies, we are also mindful of the risks posed by new AI models. Our focus is on carefully integrating these technologies.

What are the newest models and systems you are developing, and how will they benefit both the bank's customers and the company itself?

ESG is gaining significant attention from business, regulatory, and those companies with socially responsible business practices. We are currently developing models related to ESG (Environmental, Social, and Governance). A key area of interest is a client’s environmental risk, particularly as it is linked to a client’s physical location, and their collateral. When making decisions on credit risk, it is crucial to know about these threats to physical infrastructure and assets as well.

Recently, the ECB conducted an inspection into ESG practices at ING. We were the first bank inspected for ESG. The inspection, completed a few weeks ago, concluded that we maintain a strong performance when it comes to ESG reporting and model building. ING's reputation for offering green loans, and our proactive stance on ESG compliance, have set benchmarks for the European banking industry.

Aneta Ptak-Chmielewska:

Educational

leagues

aspects

(sharing knowledge with ING col-

and students, and a Risk Modelling Challenge)

Aneta Ptak-Chmielewska discusses ING Risk Hub’s role in risk management, educational initiatives, future growth, and attracting top talent.

How is Risk Hub helping ING ensure robust risk management practices?

Risk Hub plays a crucial role in ensuring robust risk management practices by overseeing the entire model life cycle. This cycle includes preparing data, developing a model, validating data independently, implementing solutions, and a process of continuous monitoring. By managing all these phases within a Risk Hub, we maintain a cohesive perspective, allowing us to identify and address any issues effectively.

We work closely with the headquarters, participating in leadership teams and collaborating on global guidelines, policies, and methodologies. This collaboration ensures that our practices align with and contribute to the broader ING group’s standards.

Being part of a global team, we help develop and refine methodologies and guidelines that benefit the entire organization. This integrated, cross-location teamwork enables us to maintain high standards in risk management, providing a comprehensive view and constant control over the entire process, ensuring effective risk management practices for ING.

What initiatives does Risk Hub undertake to ensure continuous education, knowledge sharing both internally and externally? What does promotion of innovation look like within the organization?

As the creator and leader of education and knowledge-sharing initiatives at Risk Hub, my responsibility is to foster an environment of continuous

learning and innovation. One key initiative is the Boot Camp, which we launched in 2020 to quickly and efficiently onboard our young talent.

This three-week intensive training program, led by our experts, helps new joiners integrate smoothly into the organization. Its success led to the expansion of the boot camps, with five to six editions in 2021, training over 60 new hires across various locations, during the pandemic.

The Boot Camp focuses on technical skills, particularly business modeling, and has become a regular service with several groups trained each year. We have expanded our offering to include soft skills training, recognizing the importance of these skills for those professionals who usually focus more on hard data. Currently, we provide three to four training sessions per month, covering a wide range of topics, and train hundreds of employees annually.

We organize events like the Lion’s Den hackathon to promote knowledge sharing and attract new talent. We also collaborate with universities to ensure we stay updated with the latest theoretical knowledge and research, which we then apply practically within the company. These initiatives help us maintain a dynamic and innovative environment, ensuring that our team is wellequipped with both the technical and soft skills needed to excel.

As I mentioned, we also focus on partnering with universities that align with our expertise in finance, statistics, econometrics, and AI; particularly in Poland.

How do you envision the development of Risk Hub in the coming years? What will be the key challenges, and do you anticipate further growth in the number of talented employees joining the hub? We have very high expectations for the talent we recruit, and we do face some challenges in attracting new talent. Aside from our attractive reputation, we are actively addressing shortfalls by organizing our annual Risk Modeling Congress, which pulls in over 200 participants, including industry experts. Although the growth of our employee workforce may not be as rapid as in the previous years, we are committed to expansion and retention. We focus on internal career development, and helping employees advance from junior to expert positions within four to five years. Overall, our goal is to maintain and build up this talent pipe-line, while at the same time adapting to market conditions and fostering career growth and stability within the Hub.

As one of the leaders on Polish market in expertise for risk modeling and control, how do you perceive the situation on the workforce market in this area? What are the main challenges?

The talent pool for risk modeling and control is limited, making it crucial to offer attractive and flexible working conditions. We aim to stand out as a top employer by providing excellent working environments and benefits. Our Risk Hub is located in a prime area in Warsaw, which enhances our appeal as a desirable workplace.

Łukasz Światowski

The role of risk models in the banking industry

In banking, risk models streamline decision-making and risk management. They enhance precision, enable process automation, and ensure regulatory compliance. Staying ahead involves leveraging internal expertise, external partnerships, and academic collaborations.

Can you please describe what you understand by a model, and the role of risk models in the banking industry?

In banking, a model streamlines decisionmaking by using assumptions, scientific methods, and data. For clients, getting a loan seems straightforward, but for ING, it involves complex processes. Risk models help us decide, for example, on loan approvals or determine necessary capital for exposures. Models automate decision-making on a large scale, allowing banks to process numerous clients efficiently and allocate assets optimally. This benefits both the bank and clients, ensuring loans are granted only when sustainable. This automation represents a new industrial revolution. Models also remove biases inherent in human decision-making, leading to more objective and honest business decisions. Models enhance precision in comprehensive tasks like pricing complex instruments, relying on data and statistical techniques. They also offer transparency, enabling result reproduction and compliance. Additionaly, models ensure appropriate capital levels that are crucial for sector's financial stability.

Your colleague mentioned ESG modeling, can you describe your ESG model in detail and its purpose?

Our ESG strategy focuses on environmental, social, and governance-related risks. The ESG model we developed covers specifically climate risk. It materializes through severe weather events, and transition risks arise from clients shifting away from fossil fuels due to regulations, consumer preferences, investor expectations, or social pressures. These transitions can be costly, creating risk.

Together with our colleagues from ING Bank Śląski, we developed a transition risk model for ING Bank Śląski’s business banking portfolio, including SMEs and sole proprietorships. This data-driven model offers a precise risk assessment, replacing heat maps that

broadly assigned risk levels by sector. Now, we can better differentiate between high and low-risk clients.

The model generates a numerical score that can be incorporated into the decision-making process, helping ING manage its transition risk exposure. This development positions us as a front-runner in transition risk management using advanced modeling.

We utilize Polish market data, including emissions data from the National Centre of Emissions Management, and information from the Polish Statistical Office. Combining and analyzing this data was challenging, but the experience gained will be shared with other ING units globally to support their efforts.

ING has a key role to play in the transition of our clients to more sustainable business. We are taking the steps to fund more and more sustainable deals but still the majority of the portfolio is not yet sustainable enough.

What ideal profiles do you seek for your team, and how do you find this talent both in Poland and internationally?

The ideal candidate holds a PhD in statistics or a quantitative field like mathematics, physics, or econometrics. They should understand regulations and banking products, aiding in data analysis and model building. This ensures models meet regulatory criteria and accurately capture risks.

Finding talented people is challenging. We build a community outside ING to stay connected with domain experts and are open global hiring, diversifying our team.

Internally, we are investing in

university talent. We offer tailored courses for young professionals to prepare them for modeling challenges. Experienced team members train and mentor less experienced colleagues. Additionally, we need good managers with banking sector experience, risk management background, and understanding of model lifecycle management. These leaders combine content expertise with management skills to inspire and facilitate knowledge sharing within teams.

How do you stay ahead with knowledge of new developments and innovations?

We leverage both internal and external sources of knowledge. Internally, ING's vast pool of expertise is crucial. We facilitate knowledge flow between departments. We interact with various units within ING, including the head office in Amsterdam and other locations.

We gain insights from our independent model validation function, which offers fresh perspectives. New joiners contribute new ideas, enhancing our knowledge base. Feedback from regulators like the ECB and KNF provides precise, often critical, input, deepening our understanding. Externally, we collaborate with consulting firms on regulatory changes, new technologies, and methods. For example, we've partnered with a quantum computing firm to explore this technology and with a consulting company to integrate geospatial data into our credit risk models.

We maintain strong ties with universities like the Warsaw School of Economics and the University of Warsaw, where our experts lecture and exchange ideas. We also organize events like the Risk Modeling Congress to discuss the latest developments in risk management, including ESG and AI impacts.

Lastly, our culture of openness and feedback ensures we continuously improve and develop new ideas by following the “Radical Candor” approach, which encourages open challenge and collaboration.

BIOS

Paweł Holnicki-Szulc

Business and Risk Solution Cluster Lead at ING Hubs Poland

For over four years Paweł has worked with ING Hubs Poland as Director of the Business & Risk Solutions Area. He is the creator of new services such as KYC (Know Your Customer) and modeling, risk validation for ING Group units. He has over 20 years of interna-

Konrad Wypchło

Data & Tools Tribe Lead at ING Hubs Poland

Konrad’s specialty is building effective teams from scratch and quickly. He combines business knowledge, technical expertise and management skills to design and deliver solutions for international clients. He plans and executes business strategies

tional experience in business development, sales and services in financial and insurance institutions. He is a valued speaker and panelist at various international events and conferences.

with developing businesses to help design and build agile organizations. He helps create relationships, build and lead teams, and helps supervise and manage products and projects.

Aneta Ptak-Chmielewska

Risk Management Tribe Lead at ING Hubs Poland

Aneta has been working for ING Hubs Poland since 2020 and is currently Director of Risk Management. She is also a professor at the Warsaw School of Eco-

nomics (since 2018). Other work experience includes Bank BPH, Toyota Bank Polska and BGK.

Łukasz Światowski

Risk Hub Model Development Tribe Lead at ING Hubs Poland

With over a decade of experience at ING, Łukasz began his journey in risk management and model development across various ING units, including HO Amsterdam, ING Spain, and ING Bank Śląski. In 2019, he joined Hubs Poland to establish risk modelingfocused services. Prior to his time at ING, he worked in assurance services at PwC.

Currently, he leads a team of model developers specializing in credit, market, and operational risk modeling. His responsibilities include defining team strategy, shaping organizational structure, managing key stakeholders, and overseeing team and service development.

HOW GARDENS BY FORT – IN FORT MOKOTÓW BLOSSOMED

Named for Fort Mokotów's greenery, Gardens by Fort – in Fort Mokotów overcame challenges from the pandemic to bring consistent quality, and unique, from-scratch dishes. Here Karolina Borkowska, director of Fort Mokotów, talks about bringing business acumen to a new venture.

Interview by Kevin Demaria

WBJ: What inspired you to enter the restaurant industry, and how did you get started?

Karolina Borkowska: It wasn't inspiration, rather a coincidence and my ambitions that led me to take on opening a cool spot in Warsaw. I knew very little about running a restaurant from the beginning. In fact, I learned by doing. I developed my competencies that way. Looking back now, I see this as an advantage because I had a completely different, fresh perspective.

Can you share the story behind the name and concept of your restaurant?

My thoughts always revolved around Fort Mokotów and the greenery here. I don't know of any other place in Warsaw that creates such an atmosphere close to the city center and has so many old, preserved trees. With trees and greenery, this restaurant had

to be called Gardens. The "by Fort" addition comes from Fort Mokotów. Please note that we have several names at the Fort using this word too, like Gardens by Fort, B’Fort, and Fort Photography Institute. The common denominator was Fort Mokotów, which linked together various establishments in the area. It was my idea to promote them this way.

What previous experiences or roles have most prepared you for running your own restaurant?

The business experience I gained comes from managing projects in large corporations. I approached opening the restaurant as a new project, believing that it couldn't fail. With a clear goal, selecting the right tools, and securing financing options, success was inevitable. I am a task-oriented person, and achieving the goal was only a matter of time.

What are the biggest challenges you face in day-to-day operations, and how do you overcome them?

The biggest challenge was opening a restaurant during the COVID-19 pandemic. The hospitality industry lost many good employees, making it difficult to recruit a team for a newly opened restaurant, especially when everyone feared another lockdown. Finding the right head chef was a significant challenge. The chef needed to not only cook well but also manage the team, as well as be humble enough to accept feedback. The location of the restaurant, while close to the city center, is somewhat off the beaten path. It required a lot of work and energy to find the right marketing channels to effectively promote the place.

How do you ensure consistent quality and service across all aspects of your restaurant?

This is one of the more challenging aspects of running a restaurant. Today's guests are increasingly discerning, paying attention not only to taste but also to service. Unfortunately, the role of a waiter is not treated with the same respect as it is in the West. Most people see it as a temporary job. Being aware of this, we strive to meet our employees' needs by motivating them in various ways, such as offering additional earning opportunities. We also make an effort to maintain a friendly and family-like atmosphere.

What role does technology play in your restaurant’s operations?

It is essential. We are digitalized to the extent that the industry allows. We have a very advanced control system where we monitor, among other things, sales and inventory levels. This enables us to take appropriate actions almost in real-time.

How do you manage your restaurant's finances, and what are your strategies for maintaining profitability?

Part of the answer is covered in the previous question. This also stems from my approach to work. I am someone who naturally likes to stay up-to-date with all activities impacting the business. Constant monitoring of employee costs and raw material costs, which constitute the lion's share of the company's expenses, is also natural for me.

What marketing strategies have been most effective in attracting and retaining customers?

I believe that effective management of SoMe (Social Media), which in my view is the primary channel for marketing, is crucial. Additionally, implementing unconventional strategies that stand out in the market is important. And of course, word-of-mouth marketing is invaluable, as it remains the best form of service recommendation.

What steps do you take to build and maintain your restaurant's brand identity?

Every opinion, especially negative ones, is valuable to us as it helps us continuously improve the quality of our services.

Consistency in marketing and maintaining a high standard of cuisine. Guests should return knowing they enjoyed their previous visit and can expect the same high quality each time.

How do you handle customer feedback, both positive and negative?

A restaurant is fundamentally a place created for people. We always strive to meet our guests' expectations, whether in positive or negative situations, aiming to make Gardens by Fort a place they are eager to return to. Every opinion, especially negative ones, is valuable to us as it helps us continuously improve the quality of our services.

What unique elements do you incorporate into the dining experience to stand out from competitors?

We strive to avoid using semi-finished products; every ingredient is created from scratch by our Head Chef Kamil Dąbrowski.

How do you approach menu development, and what factors influence your culinary decisions?

As I mentioned earlier, seasonality is key for us. I occasionally provide some directions, but the Head Chef is the expert in his field, and I have no intention of undermining that. Of course, we organize tastings where we ultimately evaluate the dishes and share our opinions with the team, but Kamil is entirely responsible for the whole creation.

What is your signature dish, and what makes it special?

Definitely the beef tartare with Grana Padano, served in an unconventional way. I won’t reveal more, but I invite you to visit the restaurant and experience it for yourself.

What innovations or changes are you most excited about implementing in your restaurant in the near future?

Thanks to our rapid development and strong team, we provide catering services for larger events at our event space, B’Fort, as well as implement various improvements in the restaurant that make work easier for our coworkers.

Are there any sustainability practices or initiatives you’ve implemented in your restaurant?

We strive to prepare dishes in a way that minimizes product waste. For larger events, we use biodegradable tableware. Additionally, the restaurant’s garden space and the impressive B’Fort venue contribute to the "Pollinators" project with the Bee Must Be Foundation, which creates suitable conditions for insects through the planting of specific plants, as they play a crucial role in the environment. It’s also worth mentioning that we surround ourselves, inside and outside, with living plants.

If you could go back and do one thing differently, what would it be and why?

I don't think I would change anything. Every failure or small success along the way taught me lessons that helped me draw the right conclusions and use them later on. This long, challenging journey has also greatly strengthened my resilience.

Władysława Szpilmana 6, gardensbyfort.pl

As Poland's business services sector matures, the focus shifts from headcount to high-value, knowledge-driven processes. The ABSL 2024 report reveals how digitalization, hybrid work, and a push for productivity are reshaping the industry.

POLAND'S BUSINESS SERVICES: FROM RAPID GROWTH TO STRATEGIC EVOLUTION

BY ROBERT GOLNIK

Each year, the Association of Business Service Leaders (ABSL Poland) hosts a summit focused on the transformation of the shared services sector. This past June, Krakow welcomed more than 1,500 industry professionals who gathered to exchange ideas, explore emerging trends, and hear from an impressive lineup of over 150 speakers. Notable voices included Jacinda Ardern, former Prime Minister of New Zealand, Jacek Siewiera, Head of Polish National Security, and Leszek Balcerowicz, the esteemed economist and former Prime Minister of Poland, among others.

Alongside the event, ABSL released a 200page report that stands as one of the most comprehensive analyses of Poland's business services sector to date. The 2024 edition of the Business Services Sector in Poland report highlights significant trends and changes, offering a detailed, data-driven examination of the sector’s evolution. It compares current

data with previous years to provide insights into the sector’s trajectory.

In this article, we distill the core findings of the ABSL 2024 Report, synthesizing the past year’s developments in the sector. We also examine the scenarios that may shape the industry’s future, shedding light on the evolving landscape of this pivotal sector.

Continued Growth in Employment

A key revelation is the sustained expansion of Poland’s business services sector, a trend that has gained remarkable momentum since the nation’s accession to the European Union. By the close of the first quarter of this year, employment in the sector had reached 457,100—a 3.8% increase from the previous year, though at a slightly moderated pace compared to earlier periods. Over the past decade, the sector has seen an astonishing 259% increase in employment. Nota-

bly, a significant 84% of these jobs are concentrated in foreign-owned centers, with the United States, United Kingdom, and Germany emerging as dominant players in terms of operational scale and workforce.

The rise in employment is largely attributed to the opening of new centers across Poland, including 60 established throughout 2023 and the first quarter of 2024. These centers have not only created fresh job opportunities but have also diversified the range of services offered within the sector. Moreover, established centers have increasingly taken on more complex, knowledgebased processes, moving beyond the repetitive, entry-level tasks that once defined their operations.

Distribution and Nature of Business Centers

The 2024 report also highlights the evolving landscape of business centers across

Poland, with a noticeable shift toward IT processes, which now make up 46.6% of all business service centers in the country. This trend underscores the increasing importance of technology and digital transformation within the sector.

Another key factor contributing to the growing share of IT centers is the impact of regional and global mergers and acquisitions, which have led to some centers closing or being taken over by other companies. This shift reflects a move toward highervalue processes supported by IT, while simpler operational tasks are being streamlined or merged, ultimately adding more value to the business.

The report also notes a maturing market, with the overall number of business centers continuing to grow, albeit at a slower rate than in previous years. This maturation indicates a sector that is stabilizing and evolving, shifting from rapid expansion to a focus on quality, efficiency, and service diversification. The stabilization in the number of new centers suggests that while the sector continues to expand, it is doing so at a more strategic and sustainable pace than before.

Another significant finding in the report is the changes in working models within the sector. The hybrid work model, which gained traction during the COVID-19 pandemic, has now become a permanent fixture. Working from home is no longer just a perk but a standard term embedded in employment agreements. This shift not only reduces costs but also adds value to relocating processes to Poland. The move toward hybrid work reflects the sector's adaptability and its capacity to embrace new working paradigms. Importantly, Polish law will need to evolve to align with these changing employee expectations.

New Measurements of Sector Growth

The ABSL report signals a pivotal shift in Poland’s business services sector, urging a move away from growth metrics centered on headcount to a more refined evaluation of qualitative factors. Key among these is productivity, with export output per worker set to reach $63,500 by the end of 2024—a remarkable 45.2% rise since 2016, underscoring the sector’s growing economic significance.

“

Poland's

business services are evolving from rapid growth to highvalue, knowledgedriven processes

Sophistication is also on the rise, as over 55% of tasks have transitioned to knowledge-intensive activities, reflecting a broader move from routine operations to complex, value-added processes fueled by digitalization and upskilling. Automation continues its advancement, with 98% of business leaders acknowledging AI’s positive impact on talent management, and 86% embracing it as an opportunity rather than a threat. Additionally, the sector’s innovation potential and capacity for intellectual property creation have become increasingly critical, marking a shift from cost-driven operations to high-value, knowledge-driven services that promise sustained competitiveness and long-term growth on the global stage.

Conclusion: A Sector in Transition

The ABSL's annual conference and report highlight a dynamic and evolving business services sector in Poland. Despite a slower expansion rate, employment and export productivity are on the rise, driven by a shift towards IT processes and hybrid work models. There is a noticeable transition in Poland’s business services sector towards measuring productivity and sophistication rather than just headcount. Key trends include a significant rise in export output per worker and a move to more complex, knowledge-intensive tasks driven by automation and digitalization.

Poland’s business services sector remains a crucial part of the national economy, with a promising future ahead. Its strengths in cost

efficiency, skilled labor, and strategic location continue to attract investment. As the sector evolves towards high-value services, it will maintain its competitive edge and drive innovation, contributing significantly to the national economy.

Robert is an accomplished development leader in the shared services industry, with a focus on it data & analytics platforms. With nearly 15 years of experience, he has a deep understanding of how shared service organizations influence business decisions. Robert excels in leading large agile teams and translating business requirements into technical solutions that drive value and achieve strategic goals. His expertise encompasses fp&a, strategic performance management, and digital transformation initiatives. Robert holds a Ph.D. In management and an executive mba, combining technical expertise with strategic leadership.

ENDURING CONFIDENCE IN CENTRAL EUROPE

The latest barometer of deal-doing sentiment in Central Europe shows continued growing confidence, with 84% of respondents feeling 2024 will prove a good year for returns as the Index climbed steadily for the fourth semester in a row.

According to Deloitte, sentiment regarding the economy continues to improve, with 59% expecting conditions to remain the same and a third (31%) expecting conditions to get better. Pessimism has halved again, with just a tenth now expecting a decline, down from a fifth last time and 43% a year ago. The direction of travel is clearly encouraging.

Expectations around market activity are stabilizing, with over half of respondents (51%) expecting activity levels to remain

the same, up from 37% last time. Over twofifths expect an increase, while the proportion expecting a reduction in activity has more than halved to just 6%.

Confidence is back

Investors in Central Europe are vastly more optimistic about liquidity in the region, with a third expecting debt availability to increase (33%) or remain the same (59%) for the rest of this year. This may support larger deals: for the first time in a decade, the Survey reveals no

“

The Index has achieved its longestever continuous climb, rising for a fourth consecutive semester to exceed the Survey’s historical average and land on 118

Longest recovery yet

The Index has achieved its longest-ever continuous climb, rising for a fourth consecutive semester to exceed the Survey’s historical average and land on 118. Other periods of growth also followed dips, such as in 2008, 2012 and 2020, but this recovery is longer and more gradual than the others, suggesting our respondents are more cautious in their optimism. This is unsurprising, given many in the current generation of deal-doers boast a quarter century navigating economic cycles and complex environments.

ESG drivers

ESG continues to play an important role for firms in the region, with over two-fifths (41%) starting to develop future commitments and targets toward climate neutrality and another fifth having already implemented formal decarbonization commitments and targets.

expectations of falling deal sizes. It is also the fourth Survey in a row where fewer expect leverage availability to contract.

“We are greatly encouraged to see the Index surpassing its 20-year average after a period of prolonged uncertainty,” said Jan Brabec, Deloitte Partner and Private Equity Leader. He added that “this recovery in sentiment is more gradual and sustained than those which followed the three other dips, suggesting cautious optimism and reflecting experience gleaned over a quarter century of navigating economic cycles and complex environments.

“Private equity firms across the world increasingly incorporate sustainability and diversity metrics into their decision-making and value creation plans. Central Europe is no exception. With valuations clearly being impacted by success in this important area, we expect private equity to play a leading role in helping businesses in the region continuously progress with their ESG frameworks,” said Julia Patorska, Partner, Sustainability and Climate Portfolio Leader for Deloitte Central Europe.

The Deloitte Central European (CE) Private Equity (PE) Confidence Survey Index has served as a barometer of sentiment for over 20 years and has just achieved its longestever climb to surpass the historical average. It suggests activity levels are set to increase, with a number of successful fundraises a testament to the ability of experienced PE houses to generate strong returns across cycles.

Expanding Horizons

September 2024 is a very significant date in the development of British Primary School of Wilanow (BSW) as it opens its new wings for Preschool and Upper Primary. Tom McGrath, Principal since 2017, reflects with Morten Lindholm on the theme of expansion as the new academic year dawns.

INTERVIEW BY MORTEN LINDHOLM

Morten Lindholm: Congratulations on the latest chapter in BSW’s history. Tom McGrath: The Irish have construction in their DNA and I have been fortunate to conceive and realise many building and renovation projects in my 25+ years in international education. However, this expansion project at BSW is one very close to my heart. Winston Churchill made the wise reflection that “We shape our buildings; thereafter they shape us.” This is a gamechanger in the development of British Primary School of Wilanow. It is not just about additional space, though this is much needed. It allows us to arrange space for the best quality of education. It helps to us to organise the wings to the school into phases of learning and to put our pupils at the heart of everything we do.

Please explain with some examples. Due to the popularity of our school and space pressures, we have, in recent years, been compelled to reduce our intake in our early years. We did this with reluctance as we see the youngest age groups as the key to success. We begin our provision with three year olds and the Early Years Foundation Stage curriculum is a highly effective programme that teaches pupils key skills and meta learning behaviours that gives young children the very best start. We now have a custom-designed preschool of 9 classrooms, attached to the main building but operating independently. The

learning spaces have been designed to deliver our programme, to allow our pupils to learn in a supportive environment with our excellent staff, to have their own dedicated space to play, to eat, to explore, to have fun. This is the facility I am most proud of and I am looking forward to see it in operation.

Can you put some figures on the expansion?

The campus now comprises three wings. The original building that has also undergone refurbishments and reorganisation, a new preschool building with 9 classrooms, specialist teaching spaces, offices, cloakrooms and dining room; I am delighted that all the preschool classrooms have built-in, age-appropriate bathrooms. The final wing is for our Upper Primary school. Our school operates up to the age of 14 and we have added 7 full-sized classrooms, two smaller teaching spaces, a new library and changing rooms for our sports facilities. The new sports hall is also nearing completion and will be ready to operate in Term 1.

Your school population is also expanding?

Indeed, we will exceed 400 enrolments. For the first time, we have the capacity to add further growth as the international-minded community in Warsaw learn more about our facilities and offering. We enjoy a reputation for quality education and we now have the facilities to match this reputation. As part of the International School Partnership group of schools in Poland we focus on two key criteria: improving quality and expanding offering. The reorganisation of the space allows us to provide more specialist teaching spaces. We have a new library space, an enlarged drama facility, a new Music room, an expanded canteen and a new teaching space for science. We are also able to bring our excellent administration team back into the building so we can provide an improved level of service to our community.

We also plan to have more opportu-

We shape our buildings; thereafter they shape us...

nities to develop community with our newly formed Parent Teachers Association and we now have more spaces to welcome both the parent and wider community into the school.

So an exciting start to the new school year?

Every year when I have my wonderful staff back in late August for training and preparation I say we are starting anew. This is especially true this year as we have a totally different facility with very little left where it was in June. Starting a new academic year is a new voyage of discovery with many seasoned sailors but also some new hands on deck. We are also looking forward to celebrating the 10th anniversary of the school’s foundation and so plenty of fun ahead.

Any other expansion plans or projects to share?

The first year of operation of this amazing facility will be a major occupation and we still have further enhancements planned to the sports facilities, exterior spaces and play facilities. We were the first school in Poland to join International Schools Partnership (ISP) in early 2023 and we can see the result of their investments in the delivery of this significant construction project. ISP is keen to develop further projects in Poland and now has three schools, all in Wilanów. I am sure they will not be resting on their laurels…

British Primary School of Wilanow Prymasa Augusta Hlonda 12, bsw. com.pl

POLAND’S RISING

PURCHASING POWER

The World Bank predicts Poland’s GDP-adjusted income will surpass Japan’s, a remarkable shift from its "Iron Curtain" past, reflecting Poland’s rising economic potential and growth.

BY SEAN REYNAUD

The World Bank made economic predictions about Poland this July that few skeptics would have thought possible even ten years ago.

According to the World Bank, Poland’s GDP-adjusted income is poised to surpass that of Japan. The IMF echoed this sentiment in April 2024, noting that Poland is rapidly closing the gap with Japan in terms of per capita income (PPP). For many, particularly those who remember Poland’s days behind the “Iron Curtain,” this development might seem astonishing. However, the data on modern Poland tells a compelling story. A growing number of analysts are recognizing Poland’s rising potential, perhaps for the first time, as they acknowledge that the stifling era of the Polish People’s Republic (PRL) is firmly in the past.

ON STAGE

On May 7th of this year, Ursula von der Leyen appeared at the Katowice International Conference Center and proclaimed, “Today, I can say it: Poland is back.” This is the same official who, in 2022, faced censure because of her support for the disbursement of RFF funds, to the Polish government. At the time, the previous (PIS) government refused to recognize several ECJ judgements on the freedom of press and the independence of judiciary. In other words, von der Leyen sent funds to a government that was then very unpopular within the EU. She continued to disperse funds to Poland, including February of this year, with €137 billion for Poland’s National Reconstruction Plan (KPO). However, these payments came with a few caveats: Poland must reform its judiciary, allow for more freedom for the media, and reform and maintain the rule of law. This time, the current (Civic Coalition-led) government was ready to comply.

As Ursula von der Leyen stood on the stage in Katowice for the 20th anniversary of Poland’s EU accession, she wasn’t just recounting history—she was affirming her faith in Poland’s potential. Twenty years ago, Poland’s GDP per capita stood at just 48% of the EU average (at PPP); by 2024, it had climbed to 82%, matching that of Portugal. Unemployment, once a daunting 20%, has now plummeted to 2.6% by Eurostat metrics. While millions of Poles once emigrated, with estimates reaching 2.5 million, the tide has turned since 2018. Investment is flowing in, people are returning, and as Poland’s fortunes rise, Prime Minister Donald Tusk could proudly state, “Dear Ursula, your presence here is a powerful signal. Poland has indeed become a leader in Europe.”

Donald Tusk has never been one to hold back when it comes to boasting about Poland. Back in 2008, during his first term as Prime Minister, he boldly predicted that Poland would be "richer" than Britain by 2020. Fast forward to 2024, and Tusk is making the same claim, now

extending the timeline to 2030. Citing World Bank forecasts that predict higher income in Poland compared to the UK by 2025, he confidently asserted that Poles will soon outpace Britons. And with a subtle twist of the dagger, he added, "it’s better to be in the EU."

He’s not wrong about it being better in the EU. Poland’s history with its neighbors has been fraught with conflict, to put it mildly, so it seems only fair that it now benefits from its strategic location. Germany has transformed from an erstwhile invader to a key trading partner. While Russia and Belarus remain threats, Warsaw secured its defense by joining NATO on March 12, 1999—a move deeply ironic given NATO’s origins in countering the Russian-led Warsaw Pact. With the security of NATO and the economic opportunities of EU membership, Poland finally had the stability needed to focus on economic growth.

Poland’s transition to democracy in 1989, and its gradual embrace of a more open, free market economy, was a slow process. It took a few decades, but eventually, the world began to recognize Poland’s potential. By retaining the złoty as its currency, Poland kept labor costs relatively low, making the country an attractive destination for foreign direct investment (FDI).

Investments poured in from countries like the US, Germany, and the UK. With a highly educated, skilled, and mobile workforce, Poland also attracted interest from further afield, including South Korea and Japan.

Yet, much work remains to be done, particularly in expanding Poland’s infrastructure. Significant improvements are needed in the road network, and the country has only begun to move away from coal as a primary energy source.

IN NUMBERS: GDP per capita (PPP)

Poland: USD $49,464

UK: USD $58,906

Japan: USD $50,206

Source: World Bank, 2024

“

Today, I can say it: Poland is back.” Ursula von der Leyen, at the Katowice

International Conference Center in 2024 ”

PPP IS ANOTHER THING ALTOGETHER

What Donald Tusk means is that Poles will be wealthier than Brits is in terms of Purchasing Power Parity (PPP), rather than GDP. PPP accounts for the relative cost of living and currency flow between countries, reflecting Poland's lower cost of living compared to the UK. According to the World Bank, Poland’s GDP per capita (PPP) is around USD $49,464, while the UK’s is approximately USD $58,906. Japan’s PPP GDP per capita is USD $50,206. This indicates that Poland is rapidly closing the gap and is on track to surpass Japan, highlighting its swift economic progress.

When looking at GDP alone, the comparison shifts. Poland’s GDP stands at $750 billion, while the UK’s is $3.2 trillion, making the UK’s GDP 4.27 times larger than Poland’s. Japan’s GDP, at $4.7 trillion, is 6.3 times larger than Poland’s. Thus, while the prediction that Poles will be wealthier is optimistic, it does not imply that Poland will achieve GDP parity with the UK or Japan. Unless Poland experiences unprecedented growth over the next six years, this scenario is as unlikely as Russia suddenly behaving benevolently— essentially, it’s not going to happen.

BUT HOW EXACTLY IS PPP MEASURED?

In economic theory, Purchasing Power Parity (PPP) adjusts GDP to reflect the relative cost of living and inflation rates between countries. It measures how much a standard set of goods and services costs in different currencies, like the Polish złoty or the Japanese yen, providing a view of economic productivity relative to living costs.

For Poland, the złoty makes products and labor cheaper, affecting economic productivity assessments.

Despite Poland’s 8.5% inflation rate, higher than the UK’s 6.5%, and a surge in real estate prices in Poland, which outpaced salaries, the PPP adjustment helps gauge relative costs.

However, PPP does not account for income inequality, where Poland’s Gini coefficient of 30.5 is lower compared to the UK’s 35.6, Japan’s 32.1, not to mention the US’s 41.4, indicating relatively better income distribution in Poland.

LOOMING SHADOWS

Despite an optimistic outlook, Poland faces significant demographic and economic challenges. The country’s population is declining due to low birth rates, with a median age of 42 years and a birth rate of just 1.4 children per woman, below the replacement level. This demographic shift, combined with minimal immigration, could lead to a future with fewer Poles.

Economically, Poland is feeling the impact of Germany's economic stagnation. Germany’s GDP shrank by 0.1% in Q2 2024, with forecasts for 2025 reduced to a 1.1% growth rate. This stagnation has affected Polish exports to Germany, causing issues in Poland’s trade balance.

Foreign direct investment (FDI) in Europe has declined by 4% year-over-year, with Poland’s FDIs down by 3%. However, the number of jobs created from these investments increased by 21% year-over-year.

The National Bank of Poland reported a positive current account balance of EUR 558 million in June. Exports dropped by 9.1% in PLN terms due to reduced demand in markets like Germany. Imports also fell by 0.2% year-over-year, aligned with forecasts. The strengthening złoty, appreciating by 3.2% against the euro, has impacted export competitiveness. Despite these issues, Poland’s strong external balance and expected inflow of funds from the National Reconstruction Plan and the 2021-2027 budget support a neutral outlook for the złoty.

WHAT DOES IT MEAN?

In general, emerging markets like Poland are growing faster than developed markets such as Germany, Japan, and the UK. Many major economies are teetering on the edge of recession due to the adverse effects of sanctions against Russia, which are impacting Europe.

Despite this, Poland remains relatively steady, bolstered by EU funding, strategic alliances, its advantageous geographic location, a favorable business environment, and a skilled workforce. However, within Poland, people continue to face significant challenges with the rising costs of electricity, housing, food, and transportation. So, while the economic indicators might look positive on paper, the reality for many may not be as promising as for the economy as a whole.

LOKALE IMMOBILIA

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Market,Logistics , Mixed-use,

Office, Residential, Retail

Find more daily at wbj.pl/real-estate

OFFICE/RETAIL

Skyliner II Achieves Top BREEAM Rating

The Skyliner II, part of Warsaw's Karimpol Group development, has earned an "Outstanding" BREEAM certification with a score of 91.9%. This 130-meter tower will offer 24,000 sq. m of office space, including retail units and terrace gardens.

The BREEAM certification process was led by JWA, who collaborated closely with architects from APA Wojciechowski Architekci. Their work focused on minimizing the building's environmental impact through smart design and energy-efficient technologies. Skyliner II’s high rating reflects its commitment to sustainability, renewable energy use, and a user-friendly environment.

Szymon Zduńczyk, Managing Director at Karimpol Polska, emphasized that achieving this certification required a strong focus on ESG principles from the outset. With completion expected in 2026, Skyliner II is set to be a model of sustainable, future-proof office design in Central Europe.

LOKALE IMMOBILIA

PKO extends lease at Waterfront Gdynia

PKO Bank Polski has renewed its lease for 6,000 sq m of office space in the Waterfront complex in Gdynia, owned by Vastint. The bank, a key tenant, has been based in this LEED Platinum-certified building since 2015, which also houses its Regional Retail Branch and Regional Corporate Center. Vastint is currently upgrading the reception area and plans to introduce "Ready Flex" offices—autonomous, fully furnished workspaces available on flexible leases. The Waterfront complex, adjacent to Sea Towers and the Courtyard by Marriott hotel, will soon complete its second stage, adding two more office buildings to its 85,000 sq m mixed-use development.

Bouygues begins two Warsaw projects

Bouygues Immobilier Polska has commenced construction on two residential projects in Warsaw, set to deliver over 200 new apartments. The Neo Praga development on Drwęcka Street will offer 104 apartments ranging from 28 to 115 square meters, with upper-floor units featuring balconies or terraces, and ground-floor units offering gardens. The building will also have a green roof, with Erbud as the general contractor. The Avenir project, located on the border of Włochy and Ochota at Wszystkich Świętych Street, will feature a rain garden, electric car charging stations, and bike facilities. The Swietelsky company is handling this project. Both developments are scheduled for completion in 2026. Bouygues has operated in Poland for nearly 25 years, delivering over 8,700 apartments across multiple cities.

OFFICE

Noli Studios expands to Gdańsk

This winter, Noli Studios will open its second location in Poland, expanding to Gdańsk. Known for its Scandinavian concept of flexible living, Noli Studios offers a hybrid model that blends the comfort of home with hotel services, catering to both shortterm and long-term stays.

The Gdańsk location follows the first Polish site in Warsaw's Mokotów district. Noli Studios plans to launch additional locations in Gdańsk, aligning with its strategy to strengthen its presence in Poland. The Gdańsk projects will feature extensive common areas, renewable energy sources, and aim for top environmental certifications like LEED and BREEAM. The interior design will be crafted by Illiard Architekci.

CONSTRUCTION

Growing demand in construction jobs

The construction sector in Poland is experiencing a surge in demand for workers, especially manual laborers, project managers, engineers, and designers, according to Grafton Recruitment's "Industry Salary Report 2024." The sector's growth is tied to the global economic and geopolitical landscape, with wage increases driven by a 17.2% rise in the minimum wage this year.

Despite challenges, the market anticipates an uptick in energy and infrastructure projects, fueled by EU funds and green transformation efforts. However, a decline in students studying technical fields poses a future risk for staff shortages. The average gross salary in construction remains low at PLN 8,136.56, compared to other sectors.

OFFICE

Porsche Chooses Vibe in Warsaw for Polish Headquarters

Porsche has selected the Vibe office building, developed by Ghelamco in Warsaw's business center, as its new Polish headquarters. The company, which is expanding in Central Europe, will begin operations at its new location on January 1, 2025, occupying nearly 1,000 sq. m on the eighth floor with access to a terrace overlooking the city.

Vibe, now fully leased, aligns with Porsche’s focus on sustainability. The 11-story building offers 15,000 sq. m of office space, powered by 100% clean energy and featuring a state-of-the-art Building Energy Management System (BEMS). Certified with WELL, BREEAM, and other top standards, Vibe also provides cyclist-friendly infrastructure and electric vehicle chargers. CBRE Poland advised Porsche in the selection process.

OFFICE

Katowice Sees Steady Office Market Growth Despite High Vacancy Rates

Katowice remains Poland's fifth-largest office market with over 751,000 sq. m of space. Currently, 59,000 sq. m is under construction, the highest among regional cities. Despite no new deliveries in the first half of 2024, demand rose by 18% in Q2, with 14,000 sq. m leased.

However, the vacancy rate edged up to 20.8%. Major projects, including Grundmanna Office Park (21,000 sq. m) and Eco City Katowice (18,000 sq. m), are set to add over 36,000 sq. m by year's end. Rents remain stable at EUR 9-14.50/sq. m per month.

Erbud to Fully Transition to Green Energy with Ekovoltis

Partnership

Erbud has announced that all its construction projects will be powered by green energy, thanks to a new partnership with Ekovoltis. The company plans to completely eliminate conventional energy sources this year.

Ekovoltis, a Polish firm specializing in renewable energy, connects eco-conscious companies with green energy producers through long-term contracts. Since 2022, Ekovoltis has been part of MS Galleon, a major capital group in Central and Eastern Europe, and is also working on small nuclear reactor projects. Some of Ekovoltis' renewable energy sources were developed with Onde, an Erbud group company. Erbud, with over 30 years of experience in Poland and Western Europe, focuses on building construction, green energy, and industrial services. Notable projects include Galeria Młociny and Hala Koszyki in Warsaw, the Medical University of Gdańsk's medical center, and the Dobrcz/Mierki Photovoltaic Power Plant Complex.

RESIDENTIAL

Alstal and Marvipol to Build Eco-Friendly Housing Estate in Wrocław

Dom Development has initiated apartment construction in the second phase of the Harmonia Mokotów estate, located at the junction of al. Polska Walczej and al. Józef Beck. Additionally, they’ve commenced the Przy Fortie project in Ursus.With a focus on achieving record sales, Monika Perekitko, a member of Dom Development’s management board, highlights their commitment to expanding their offerings. The company has begun construction on 337 units in two Warsaw districts since March, The Przy Fortie estate in Ursus comprises five-story buildings, totaling 124 apartments, featuring various room configurations. Meanwhile,

MEETING CHALLENGES HEAD-ON

WBJ sat down with Monika Szelenberger, Head of Leasing & Asset Management and Robert Włoszek, Operational Director at Adgar, to talk about the post-covid office market, changes on the horizon and how it impacts the company’s strategy.

Interview by Beata Socha

WBJ: Adgar Poland is celebrating its 25th anniversary in the Polish market this year. What were the company’s beginnings, and how has Warsaw changed from a developer and office Property Manager’s perspective over this quarter-century?

Monika Szelenberger: When Adgar first entered the Polish market in 1999, the landscape was vastly different

from what we see today. Warsaw, back then, was a city in transition, with rapid development that outpaced other cities in Poland.

The demand for office space was high, and the market was only beginning to see an increase in supply. By the late 1990s, vacancy rates were as low as 1-2%, which speaks volumes about the boom in investment and development that followed.

Robert Włoszek: Our journey started with just one building, Adgar Plaza

One located in Mokotów, Warsaw’s key business district. We were a small team of no more than ten people at that time, navigating a market that was still finding its footing.

Fast forward 25 years, and we’ve grown to a team of over 100, managing a portfolio that reflects not just the growth of our company, but the evolution of Warsaw itself. Initially, we outsourced most of our services, but now we’ve developed in-house teams for leasing, project management, and technical maintenance.

Monika Szelenberger: Warsaw has transformed in parallel with the broad-

er systemic transformation in Poland, with significant milestones such as the 2009 financial crisis and, more recently, the pandemic. Each of these events has reshaped the office space market, but our strategy has always been to evolve.

Would you agree that a return to prepandemic office work is unlikely?

Monika Szelenberger: The pandemic altered the landscape of office work. We’ve seen two competing tendencies emerge. Employers want to see employees back in the office, but employees prefer the flexibility of hybrid work. Convincing people to return to the office full-time is challenging. However, even though many companies have decreased their space requirements in connection with hybrid work, their demand remains at as much as 70-80% of pre-pandemic levels.

Robert Włoszek: We are witnessing higher employee turnover, where companies are struggling to maintain employee engagement and identification with the company culture. The future work model is uncertain. However, what we do know is that the office must

offer something that remote work cannot—whether it’s superior ergonomics, optimal lighting, or simply a more comfortable and professional environment.

What changes are they opting for? Are offices still being leased for long-term periods, or are we moving towards short-term solutions?

Monika Szelenberger: The pandemic accelerated the adoption of flexible solutions in office leasing. We responded and even anticipated some of today’s trends. For instance, our first Brain Embassy, a coworking space, was launched in 2016. During the pandemic, the concept evolved, as companies were reluctant to commit to long-term leases, given the uncertainty around workspace requirements and office layouts.

Robert Włoszek: Adgar has always listened to our clients, which is why we were among the first to recognize and cater to the needs of smaller companies, often just a few people, by developing concepts like Brain Embassy and later Flexi Lease for bigger teams. We continually adapt to market trends by focusing on buildings as well as enhancing tenant experiences.

We also invest in the areas surrounding our properties to enhance their usability and comfort. A great example is the investment of approximately PLN 15 million to connect and modernize the Suwak and Cybernetyki Street, which we initiated and co-finance. By improving city infrastructure and transforming the Służewiec area, in collaboration with our partners and the City of Warsaw, we are alleviating traffic issues and reducing commute times for thousands of residents. This addresses a key factor that many had cited as a reason for opting for remote work.

What makes the Flexi Lease concept unique? How does it differ from the serviced office model that existed before the remote work revolution?

Monika Szelenberger: Flexi Lease is a hybrid between traditional office leases and serviced offices, where tenants don’t have to worry about cleaning or maintenance or other daily services in the office. The offices are modular and independent, with access control and some customization in terms of furniture and layout.

These leases can be 12 months or open-ended, with tenants often renewing them before transitioning to traditional long-term agreements for larger spaces.

Robert Włoszek: This concept is ideal for larger teams of 20-60 people, offering more space than typical serviced offices. It blends short-term lease flexibility with the quality and independence of traditional office space.

From a functional and design perspective, what are tenants looking for now, and what kind of offices are they seeking for their employees?

Monika Szelenberger: Tenants now prefer minimalist designs and collaborative spaces, moving away from traditional, hierarchical office setups like the CEO’s large private office. At Adgar, we focus on building community for tenants with events, workshops, and informal gatherings, including creative touches like a smoothie bike for a fun, interactive workspace experience.

Robert Włoszek: Trends in office design are closely aligned with organizational culture, emphasizing a flatter structure with modern acoustic solutions, optimized lighting, and kitchen areas that serve as social hubs.

How do you envision the future of Adgar Poland’s Warsaw offices in the next 25 years?

Robert Włoszek: Looking ahead 25 years is challenging, especially considering how unpredictable the past

The office must offer something that remote work cannot— whether it’s superior ergonomics, optimal lighting, or simply a more comfortable and professional environment

few years have been with the pandemic and the proximity of geopolitical conflicts. The availability of attractive locations is decreasing, which makes modernization and repurposing buildings more attractive, especially those that have become part of the city fabric. We have very positive experience with that. We have managed to create new office functions in historic buildings such as PDT Wola and the Kwadrat Theater in Warsaw, which are great examples of untapped potential that can bring real value to the city and its residents.

Monika Szelenberger: Our long-term strategy and values will remain the same, focusing on long-term investments and client satisfaction. None of our buildings have been sold, and we intend to continue offering stability and continuity to our tenants, always adapting to their needs and the market’s demands.

Robert Włoszek: We’re preparing for the future with ESG, which will impact our business, but as a market, we are in the early stages of this journey. Our buildings have been awarded sustainability certifications like LEED. We’re also anticipating changes in work culture, possibly moving towards shorter work weeks, which will further influence how office spaces are used. The future of work may involve even more flexibility, with a blend of coworking and traditional office environments, and we’re ready to meet those challenges head-on.

Flexi Lease by Adgar

BREEAM-CERTIFIED APARTMENTS FROM BPI REAL ESTATE POLAND

Belgian developer BPI Real Estate Poland carries out all its projects with a commitment to sustainable development. The company doesn't stop at implementing eco-friendly solutions but goes the extra mile. Chmielna DUO in Warsaw and Bernadovo in Gdynia are projects designed in accordance with BREEAM certification requirements. The first certified project in the developer's Polish portfolio will be Bernadovo in Gdynia.

GREEN BUSINESS STRATEGY

The principles of sustainable development are at the core of BPI Real Estate Poland's business strategy, serving as the foundation for every development project. The company emphasizes environmental care and the introduction of innovative solutions in all its projects to enhance the quality of life for current and future residents. “We recognize that we are facing unprecedented environmental and social challenges. We operate in an industry that significantly impacts the quality of life for future generations. Our goal is to deliver increasingly sustainable development projects,” said Béranger Dumont, General Manager at BPI Real Estate Poland.

“Our projects stand out, and are in high demand, because they were built in accordance with sustainable development principles. We are creating city-building projects that incorporate eco-friendly solutions, keeping in mind the needs of future generations. That's why we decided to go the extra mile and develop our projects to meet BREEAM certification requirements,” adds Béranger Dumont.

OUR FIRST PROJECT WITH BREEAM CERTIFICATION

BREEAM (Building Research Establishment Environmental Assessment Method) certification is one of the world's most recognized methods for assessing the sustainability of buildings. It evaluates a wide range of criteria, including a building's environmental impact, functionality, occupant comfort, and energy efficiency.

Visualization - Bernadovo, Gdynia

The Bernadovo development in Gdynia is the first residential project in BPI Real Estate Poland's portfolio to achieve BREEAM certification. This project incorporates numerous environmentally friendly solutions, such as green roofs and a drip irrigation system for watering plants. It is also characterized by high energy efficiency, with renewable energy sources like photovoltaic panels contributing to an energy demand that is over 15 percent lower than national guidelines.

Approximately 75 percent of the Bernadovo site is covered with greenery, and nearly 50 percent of the plot consists of a private forest bordering the Tri-City Landscape Park. To meet the "Very Good" certification requirements, 85 percent of the construction waste generated during the project was sent for recycling and reuse.

ESG ALREADY AT THE PLANNING STAGE

BPI Real Estate Poland integrates green solutions at every stage, from construction and design to the purchase of real estate.

Chmielna DUO is another development that follows the company's strategy of building sustainable residential properties in prime locations. This project not only adheres to sustainable development principles but also aligns with the concept of a 15-minute city. It will be the next project in the Belgian developer's portfolio to meet the "Very Good" level of BREEAM certification.

The Chmielna DUO project in Warsaw incorporated ESG solutions from the design stage. It is also the first in BPI Real Estate

Poland's portfolio to use certified green concrete in its construction. The project includes various green features such as electric vehicle charging stations, bicycle racks, and washing facilities.

Despite its central urban location, Chmielna DUO was designed to offer residents a place to rest after a busy day. The development features extensive greenery along the walkway connecting Chmielna and Złota Streets, in the inner courtyard with communal spaces and gardens for ground-floor apartments, as well as on the rooftop terrace of one of the buildings, which hosts a garden.

INCREASINGLY SUSTAINABLE PROJECTS PLANNED

BPI Real Estate integrates sustainability principles at all stages of development to effectively reduce the carbon footprint of its real estate sector. The company’s mission is to deliver highquality housing projects designed to maintain the well-being and health of both current and future residents. Furthermore, the Belgian developer will continue to create premium residential properties that adhere to ESG guidelines in the Polish market in the coming years. “We are currently implementing ESG solutions in all of our projects in Poland. We are also intensively preparing to launch new, increasingly sustainable development projects,” said Béranger Dumont.

www.bpi-realestate.pl

Visualization - Chmielna DUO, Warsaw

A HOUSE WITH A GARDEN IN KONSTANCIN CHEAPER THAN AN APARTMENT IN WARSAW?

Groen Konstancin is a housing estate that combines comfort and functionality with an attractive price. Houses with a garden are available from PLN 1,400,000 gross, which makes them cheaper than apartments in Warsaw*.

Groen Konstancin Estate: The advantages of owning a house

Price comparison: House in Konstancin vs. apartment in Warsaw

To illustrate the financial benefits, let us take a look at sample apartment prices:

• Price of an apartment in Ursynów (80 m² x 19,499 PLN/m²) = PLN 1,559,920

• Price of an apartment in Wilanów (80 m² x 19,200 PLN/m²) = PLN 1,536,000

You can therefore become the owner of a spacious house, and garden, for less than the cost of a 3-room apartment in Warsaw.

The Groen Konstancin Estate is an ideal proposition for those who dream of space, greenery and peace, and at the same time appreciate a convenient location close to the capital. Houses in the Groen estate can be bought cheaper than apartments in the southern districts of Warsaw. For example, the prices of apartments in Ursynów and Wilanów are 19,499 PLN/m² and 19,200 PLN/m², respectively. In the Groen Konstancin Estate, the house prices start from PLN 1,400,000 gross with an area of 117.3 m².

The advantages of a house with a garden over an apartment

1. Space and privacy. When you buy a house at Groen Konstancin Estate, you gain much more space than in a typical apartment. These houses offer the comfort of a spacious living area with a well-lit kitchen, dining room

and living room with a fireplace. The large glazing areas opening the house to the garden, with a height of almost 3 meters, feels comfortable and welcoming. The upstairs private space includes two bedrooms and a master suite with its own en-suite bathroom and dressing room. Additionally, there's a second bathroom with a window. The luxury of having your own spacious garden is a rare find in apartment living.

2. Closeness to nature. The Groen Konstancin Estate is located in close proximity to the Botanical Garden of the Polish Academy of Sciences in Powsin, the Kabacki Forest and the Culture Park in Powsin. It's a perfect location for people who love nature and prefer outdoor activities such as walking, running or cycling. The presence of numerous green and recreational areas significantly improves the quality of life of the residents, especially since Konstancin is a health resort.

3. Family atmosphere. Houses in the Groen Konstancin Estate are an excellent choice for families with children. Private gardens provide a place to play and relax in the open air. The estate offers a green sports field, common recreational areas with picturesque ponds, as well as peace and safety thanks to a fenced area – things that are difficult to find in metropolitan areas.

4. Promising investment. Buying a house in a prestigious location is an excellent investment for the future. Houses with gardens, in Konstancin, are in high demand with their value increasing over time. Having two parking spaces and a spacious living area that you can customize to fit your needs, offers homeowners a unique sense of freedom.

Why choose a house in Groen Konstancin?

Here are some of the key advantages that distinguish the Groen Konstancin Estate:

• High-quality workmanship: The houses are functionally designed and built with attention to detail.

• Spaciousness: The almost 3-meter height of the ground floor and first floor gives a sense of space and comfort.

• Large wooden windows: Spacious windows open the interiors to the garden, providing plenty of natural light.

• Modern technologies: The houses are adaptable to the installation of photovoltaic panels and electric car chargers.

• Excellent location: Proximity to schools – among others, the prestigious American School of Warsaw, as well as kindergartens, shops and public transportation.

• Quick access to Warsaw: Only ten minutes by bus to get to the nearest underground station, Kabaty.

• Safety: A fenced area with well-kept greenery.

• Closeness to nature: Near the Botanical Garden, Culture and Entertainment Park in Powsin and Kabacki Forest.

• Prestigious neighborhood: Konstancin has been attracting Warsaw's elites for years.

• Renowned developer: Ghelamco is a Belgian guarantee of quality and modernity.

Summary

The Groen Konstancin Estate is an exceptional choice for those who value living close to nature while remaining near Warsaw. This development offers attractively priced houses, making it an appealing alternative to city apartments. The convenient location, combined with the benefits of having a private garden, allows you to enjoy more space, tranquility, and a natural setting without sacrificing the convenience of city life. Groen Konstancin is ideal for those seeking not just a home, but also a sense of peace and harmony.

* According to the "Price Report May 2024" by BIG DATA Rynek Pierwotny.pl, the average prices of apartments in two southern districts of Warsaw are as follows:

• Ursynów: 19,499 PLN/m²

• Wilanów: 19,200 PLN/m²

Want to know more ? Contact our sales office :

Address: ul. Warszawska, Konstancin – Jeziorna Entrance from the Warszawska Street 171, next to Carrefour BIO)

Tel. 600 113 113

Email: contact@groenkonstancin.com www.groenkonstancin.com

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POLAND'S EAGLEEYE TAKES FLIGHT

On August 18, 2023, Poland’s most advanced satellite, EagleEye, launched aboard SpaceX's Falcon 9 rocket from California. Developed by Creotech Instruments with top Polish institutions, the 55-kg satellite will capture Earth images with up to 1-meter resolution. Its mission spans agriculture to military observation, marking a milestone in Poland's space exploration.

TECHNOLOGY

DataWalk expects revenue to increase by 70% y/y to $10 mln in ‘24

DataWalk expects to achieve over $10 million in revenue in 2024, targeting a growth rate of more than 70% y/y, according to CEO Paweł Wieczyński.The company aims to secure new high-potential customers and multi-million-dollar contracts, with a focus on expanding in both the private and government sectors. In 2024, DataWalk's implementation capacity is projected to reach $15 million, growing to $20 million by 2025.

The company's platform, which addresses global security challenges, is increasingly being adopted for forensic analytics in sectors like public safety and finance.

GAMING

CD Projekt’s stock remains strong during turmoil, brokerage house advises selling

CD Projekt, a major Polish gaming studio, has seen its stock price recover despite recent market declines on the Warsaw Stock Exchange (GPW). Analysts acknowledge the potential of the company's upcoming games but highlight significant risks.

As of late July, CD Projekt’s stock price was nearly 159 PLN, up almost 40% since the start of the year. However, some analysts, such as Krzysztof Tkocz from DM BDM, have downgraded their recommendations due to concerns over the development of the new Witcher game, issues with the Unreal Engine 5, and the challenges of meeting ambitious production timelines. Despite these risks, the stock has attracted institutional investors, with a notable purchase by OFE NationaleNederlanden.

Polish Startup Revoize Revolutionizes AI-Generated Speech Recordings

Revoize, a Polish startup, is making waves in the tech industry with its innovative AI-driven solution for generating speech recordings. The platform allows users to create high-quality voice overs using advanced artificial intelligence algorithms that mimic human speech with remarkable accuracy. This technology can produce recordings in multiple languages and dialects, providing a versatile tool for content creators, businesses, and educators.

The key advantage of Revoize’s solution lies in its ability to generate naturalsounding speech in a fraction of the time and cost associated with traditional voiceover methods. By leveraging AI, Revoize not only reduces the need for professional voice actors but also offers greater flexibility in modifying scripts and adjusting tone or pace without needing to re-record.

This innovation has the potential to significantly impact industries ranging from media production to e-learning, where the demand for personalized and scalable audio content is rapidly growing. As Revoize continues to develop its technology, it positions itself as a leader in the AI speech generation market, showcasing the growing influence of Polish startups on the global tech landscape.

Number of mPay application users increased by 21% y/y to 1.6 mln in July

As of July 31, 2024, the number of mPay app users reached 1.601 million, reflecting a 21% y/y increase, the company reported. Compared to the previous month, the number of accounts grew by 24,000.

Launched in 2003, mPay is Poland’s longest-running mobile payment system. The app allows users to buy public transport tickets, pay for parking, and top up prepaid phone accounts using a smartphone or tablet. Since 2007, mPay has been a licensed settlement

agent authorized to process mobile transactions. Since 2013, the strategic investor for mPay has been Grupa Lew. The app has been listed on the NewConnect market since 2011.

CONNECTIVITY

Orange Polska has 1.6 mln households with up to 8Gb/s fiber optic coverage

Orange Polska now provides nearly 1.6 million households across nine cities with access to its ultra-fast Orange Światłowód fiber-optic internet, offering speeds of up to 8 Gb/s. The company aims to expand this coverage to nearly 2 million households by the end of

MOBILE APPS

the year. Orange Polska is also investing in 5G mobile internet to ensure highquality connectivity both at home and on the go. This expansion is part of their commitment to providing the best possible service to their customers.

Orange Polska is a major telecommunications provider in Poland, listed on the Warsaw Stock Exchange since 1998.

MOBILE APPS

InPost Group recorded over 2 mln downloads of mobile app in France

InPost has achieved over 2 million downloads of its mobile app in France, where it operates under the Mondial Relay brand. The company manages over 5,100 Paczkomat machines and 11,000 pickup and drop-off points (PUDO) in France. It is expanding its infrastructure, including introducing autonomous Paczkomat machines, and is also strengthening partnerships with global players like Zalando and Vinted.

InPost’s mobile app is a key competitive advantage, with over 12.6 million users in Poland alone. The company has also launched international deliveries through Mondial Relay, allowing cross-border shipments between France, Italy, Spain, Portugal, and the Benelux countries. By the end of Q1 2024, InPost had over 69,000 out-of-home points across nine countries. InPost was founded in 1999, went public on Euronext Amsterdam in January 2021, and acquired Mondial Relay in July 2021.

TECH NUMBERS

GAMING

Forever Entertainment has PLN 3.05 mln net profit and PLN 3.65 mln EBIT in Q2

In the second quarter of 2024, Forever Entertainment reported a net profit of PLN 3.05 million, up from PLN 1.65 million the previous year. Operating profit increased to PLN 3.65 million from PLN 1.71 million y/y. Net sales revenue rose to PLN 10.16 million from PLN 7.65 million.

The company’s EBITDA margin improved to 36.5% from 23.4%, and operating margin rose to approximately 36% from 22.4%. Net margin increased to 30% from 21.5%.

For the first half of 2024, net profit was PLN 4.08 million, up from PLN 2.9 million the previous year, with revenues slightly down to PLN 17.22 million from PLN 17.71 million. EBITDA margin was 30.6% compared to 21.1% in H1 2023, and net margin improved to 23.7% from 16.4%.

GAMING

Silk Road Games buys 41% of shares in Big Cheese Studio for PLN 22.4 mln

PlayWay’s accelerated build-up of Silk Road Games has led the global distributor to acquire a 41.44% stake in Big Cheese Studio, bringing its total holding to around 50%. This majority stake allows Silk Road Games to effectively manage and set strategic goals for the studio. The purchase price per share was PLN 14.15. Silk Road Games aims to enhance its position in the gaming industry by expanding its capital group, advancing its publishing and production capabilities, and improving quality assurance, localization, marketing, and global distribution.

Industrial Robots

23,000 units

industrial robots installed in Polish industries

10%

percent of robotics compared to Germany

71 per 10,000

manufacturing workers density of robots to humans in Poland

$47,000 down to $23,000

price of robots for industrial use (Santander Bank Polska)

Automation

35%

percentage of Polish companies planing to hire automation specialists

42%

percentage of enterprises not willing to hire specialists

22%

percentage of enterprises unsure of their need for specialists (Personnel Service's survey)

In Space

€3.2 million

allocation to Scanway to develop two telescopes for ESA

1 meter per pixel

visible light resolution of telescope for micro-satellite (Scanway)

DATAWALK AND THE POSSIBILITIES OF GRAPH AI

Businesses globally are heavily investing in AI to stay competitive, yet many misunderstand its capabilities. Data Walk’s Paweł Wieczynski explains graph AI, using graph data and machine learning for analysis.

INTERVIEW BY SEAN REYNAUD

With graph AI, how is it different from the regular black box AI? What comes first and what comes after, the graph or the AI and how do you explain this to someone who is non-technical?

Well it's actually very interconnected. So graph enables feeding the AI so if it first and foremost connects all the data sets

and then enables feeding the AI with the data; so this is a big part of what I would say is the back end of AI. But also Graph enables different types of operations that AI systems benefit from. A lot of AI techniques are purely graph based. You cannot do a lot of algorithms, such as graph algorithms, without graph. Some types of AI benefit from feeding data, then finding contextual relationships; and when you said “black box” I think that’s the biggest difference when dealing with your typical systems. Graphs are a way of dealing with real world data because everything is connected, there are multiple layers between us and different data points.

But isn’t that approach winning right now, as in we don’t need to know what is happening inside, as long as we get the right answer? Isn’t this how markets are approaching AI?

The current way, which is an early stage of AI, is a revolution. A lot of people are

still not using AI. It’s like in the 80s, when computer drafting came into use. Some people continued to draw on paper. But they’re obsolete now. But with regards to AI, the majority are still using a very narrow function of AI.

So graphs are a way for us to understand AI better, but does this narrow how AI can develop on its own? Graphs are not only a way for humans to interact with AI and manage the system, but also a way to tune large language models. You must know that Chat GPT has a lot of hallucinations, and these hallucinations are something our customers are curbing. We are using a contextual driven system that takes the LLM results and matches it with factual data, and tries to recognize where the hallucination is.

And there are also legal ramifications. Chat GPT sourced its data from

many sources, and now it’s facing a lot of lawsuits because of that.

Of course. The same with enterprise customers. If it's the government, it still has to be in our system. For instance, we have to have military grade security, but also military grade permission schemes, all these locks and traceability logs. This prevents misuse of data that one agency or another doesn’t have authority to access. Or in the case of the corporate world, there are different limitations.

Do you think hallucinations can be eliminated?

Oh yes, of course.

Aren’t they an inherent part of AI? Don’t we just have to learn to love the hallucinations?

No, I think it will be eliminated. We already have some tests with our customers, and when applying the proper techniques you can actually reduce hallucinations significantly.

In the future, if you want to be effective in your trade, you will need AI. But it’s not going to be just one. Most of our scoring, for instance, for fraud detection, are based on multiple AI models and rules that operators put down. For instance, the operator puts down that he/she is not interested in this or that, or people from this area. Combine parameters with some mathematical, linear models and then we have a more accurate AI model.

So let’s talk about DataWalk, with the US market. How did your company get a foothold in the US, and a military contract, nonetheless.

We were one of the first in graph analytics, which is a market that is forming. There is a very narrow set of competitors in terms of data platforms that enables graph analytics. DataWalk and Palantir. So because of low saturation it was easier for us. The Department of Justice created a 500 million dollar frame project to create a Palantir alternative. They were fed up with the limitations of Palantir, not only because of costs, but other operational and legal issues. As part of a consortium, we

In the future, if you want to be effective in your trade, you will need AI.”

won the frame agreement and the first project we won at DOJ was to replace Palantir in the Money Laundering and Asset Recovery section. This was one of our first customers. In order to grow you have to push yourself beyond your own boundaries to build a better product and a better solution for those customers. And once we were mature enough as a product and company, we were able to penetrate into the commercial market.

Well, with names like DOJ or DOD, I mean, all the doors opened, right? Well, the truth is that the government is usually ten years behind the commercial sector. When it comes to the resources they are also very limited, and if you are an analyst in the DOJ you will get $80,000 a year, but if you are doing the same job in a bank, you are getting twice as much. So, usually they have some kind of restraints when it comes to resources, and also they have a process

when it comes to purchasing which is more lengthy. And some projects could take 4-5 years to get to the sales.

How did you approach the DOJ? How is it that a Polish company could target a US government agency with their product?

We had to start with a daughter company in the US, and the daughter company had an executive team with a sixty year old veteran of this enterprise space. One of these executives created a number of startups that were later unicorns, and even created a category that is called “utility storage.” So, having people like this in your corner was important to even be considered.

So in this way you provide the tools and they are transparent enough that dealing with classified materials is not an issue, because the DOD or DOJ can use it themselves. Do you provide training?

Yes, and because of that, we need clearances for all locations. We have a small team of 20 with the necessary clearances to access facilities and train government employees.

With the Toronto Police Department, which is the seventh largest in North America, we implemented an algorithm called "Find Path." By integrating it with some business rules, we were able to reduce the investigation time for murders from months to hours, and in one case, to minutes. Handling cases involving millions of records was nearly impossible through conventional means.

So when it comes to large volumes of data this is where the graph comes in to help parse data, to speed things up. Exactly. But the issue is that organizations have a lot of data and they don’t know how to break their silos. It’s not that banks don’t have the data, of course they do. Of course banks want to pull data from the dark web, or social media, but very often they would struggle with bringing their own data. Graph models reduce frictions and allow for daily modification of data sources. Having short iteration cycles allows for faster processing.

GAMING AND GROWING AN ESPORTS INDUSTRY

Since 1972, and the birth of the first consoles, esports has taken hold as a great form of entertainment, and a place to show off one's reflexes. However, what if there was more to esports than watching digital code flash across a screen? Interview with Olga Adamkiewicz, CEO of Artgeist

INTERVIEW BY SEAN REYNAUD

WBJ: So the gaming industry seems like it is contracting a bit, as a result of oversaturation. How do you see the gaming industry today?

So gaming is a very fragmented market, right? So you have different providers when it comes to hardware, when it comes to software, when it comes to different types of games on different devices. And then there is this tiny part of it, which is called Esports. Gaimin. gg aims at democratization of esports among players, in the sense that it allows players to enter and play for a very small amount of money, and where you don’t have to be a professional gamer. So you don’t need a lot of experience. Also, it’s not a betting company. Let’s be very

clear. So Gaimin.gg allows you to play with competitive gamers, with games like Counterstrike.

One of the things that we identified, or the founders of Gaimin.gg identified, was the challenge of making esports more available for a broader audience. There is a fundamental gap between a player and an esport player. You need to invest a lot of money in your skillset. It boils down to an investment in time and training, and so forth. And so to make it more available we created a platform that makes it more accessible for people to compete, at different levels of experience, with those of a similar level.

So is it an application?

It’s a web solution for PCs, because a majority of games are available on PC. They are less playable on consoles, and they are practically non-existent on mobile. So this is a web solution that allows people to match with other players.

Right now we are at a proof of concept level. So we have opened up the platform for two games on the Polish market to prove that it works – and it actually works very well. The feedback has been very positive.

The founders are right now raising capital for a scale-up.

So for now it’s in Poland only? Yes, but it’s available in multiple languages. But basically the game is designed in English because this is the language that gamers use. The payments are available in multiple markets, but the proof of concept was done in Poland due to the fact that it was easier for us, being from Poland.

Would you say that esports are professionalizing in Poland? Are there any esport companies or trainers? Well, it is still emerging and many are waiting for it to develop in Poland. My first experience with esport was eight

years ago when I founded a company called Brand New Galaxy, which is a big international marketing company. And one of the pillars we had was to explore esport and gaming. We had this idea about bringing in sponsors from big brands. But then the benefits of those sponsorships were not that clear, so they chose not to invest further. So I think the problem with esports is that it is still at this emerging phase, and everyone is waiting for esports to become the big thing in gaming.

What is preventing gaming from snowballing into something really professional?

One I think is awareness, but the other is basically infrastructure. If you look at countries like the US and China they have a systemic solution supporting start-ups, for supporting and financing players, to allow players to play instead of doing other things. Because if you look at players from other countries, the successful ones are spending ten hours a day training on their particular game. So they cannot work somewhere else. They have to spend their entire capacity on training in order to become successful.

In Poland we have some investors in esports, some companies working on developing esports, but these efforts are still very small compared to other markets. Even if you look at how much is being spent on players, the amount of money is very small, even compared to western Europe.

Esports is one of the sports where age matters most. What is your opinion on age? Is it sustainable to invest in a player, and at what stage do you invest that makes most sense?

Well, first of all, I was born in a world without the internet. I was four when I played Manic Miner, which was a platform game when I was younger. So overall, gaming is a relatively young industry. And within that young industry we have people that are starting to emerge from a reality different from the one I was born into. Now, I think at the

There is a fundamental gap between a player and an esport player. You need to invest a lot of money in your skillset”

of a gamer is that it’s a male, teenager that's not leaving his room or not doing anything other than gaming, which is completely untrue. Because in order to be a professional gamer you have to be very fit, very organized and structured in terms of thinking, and you need to be mentally stable.

What we’ve also noticed is that the skillset of gamers is potentially very useful in other industries. Because it basically boils down to a specific way of thinking, and a very fast decision making process.

Would you say that the future of an esports player is mentorship; is it business?

It could be a lot of things. There are examples of players in the US being hired to fly drones. So, obviously we could debate whether it’s good or not, but at the end of the day this is something that is already emerging. I’ve worked with a lot of people in gaming, and they are brilliant people. And from our case with Gaimin.gg, the founders were first of all, players. They have a love of the industry.

What is No More Cheats?

end of the day, I think it’s a certain skill set attached to using a certain device, and you develop a native ability while using that device.

Now, answering your question on the age aspect, I think that people start to play very early and they get used to gamification as a concept. It doesn’t need to be esports. They’re used to gamification, and then they grow with it on more difficult platforms to more difficult games, and then they become more technologically savvy. Having said that, we have players that are not teenagers. They have been playing for ten or fifteen years. So I think this element, of age, will change as well. Our stereotype

Well, No More Cheats is an R&D company. It is dedicated to developing a solution that promotes fair play among esports players. Because that is something that is also a growing challenge. There are all kinds of hacks that you can do in games, either in the hardware or the software. So we are dedicated to finding a way to promote fairness and reduce cheating in esports, which could be helpful to promote esports overall.

Players are tired of installing new software to play games, yet we need a software solution to close the gaps in the security of games. For example, Counter Strike was made a long time ago, and so there are a lot of security gaps in the game. The challenge is to plug those gaps. If somebody can come up with a solution that is more acceptable for players then, it could be interesting. And this is exactly what No More Cheats is working on.

Life + Style

TIMELESS ELEGANCE WITH MODERN MASTERY

With a fearless approach to bespoke creations and a playful yet disciplined eye, architect Kasia Baumiller crafts spaces where the past and present converge in perfect harmony.

INTERVIEW BY KEVIN DEMARIA

WBJ: Your project for the Warsaw apartment blends traditional elements with contemporary design. How do you balance these seemingly contrasting styles to create a cohesive and harmonious space?

Kasia Baumiller: In design, I like to stay grounded in reality. We're living in the 21st century, not the 19th, so while I love classic interiors, I only love those that belong to their time. In my projects, especially those in old tenements, I ensure the apartment’s substance fits the age of the building, while the function, furnishings, and decorative elements are contemporary. It’s an honest, time-driven approach that works.

The owners encouraged you to push boundaries. Can you share an example of a design choice in this project that resulted from their encouragement?

The kitchen. Initially, it was supposed to be a significant element, almost a sculpture in the space, based on original concepts. However, the owners suggested I take it further. I remember that conversation vividly because I realized I didn’t have to limit myself. It was liberating; I could let go and truly experiment.

Sometimes you create custom pieces instead of using ready-made options. What are some challenges and rewards of designing bespoke items?

Designing objects from scratch is a great passion of mine. It allows you to realize an idea exactly as it appeared in your imagination. It also offers the chance to create unique solutions and explore trends before they manifest. Designing objects lets you define their parameters so they perfectly meet the space's requirements. The challenge is that these objects are created one at a time, without the support of a large team, as in big furniture brands. There’s always tension when seeing how it will work out, but it does work. The most important thing is to have a good, smart idea and great implementers.

Your approach includes a playful use of materials, like gradient curtains and a pink kitchen unit. How do you ensure these elements remain timeless despite their unconventional nature?

I don’t know if they will remain timeless. I’m increasingly aware that what matters is the here and now and being reasonable about ecology. My focus is on quality workmanship so that these items age gracefully. With careful craftsmanship and good materials, objects can find new life in a different context. I don’t support producing short-lived, junk furniture.

You describe yourself as a maximalist who designs with discipline. How do you reconcile these two aspects of your personality in your design process?

Plurality and diversity don’t have to mean a lack of rules. Similarly, rules don’t have to mean moderation. I look for harmony in more variables. For me, discipline isn’t about asceticism but about awareness and responsibility for the decisions made.

“Designing objects from scratch is a great passion of mine. It allows you to realize an idea exactly as it appeared in your imagination”

The apartment features a mix of reflective tiles, colored steel, and traditional materials. How do you ensure that such a diverse range of materials works together seamlessly?

I’m glad it's perceived that way, though not everyone may see it as seamless. I rely on intuition and a stream of consciousness. If my personal vision of the color world resonates with others, I consider myself lucky.

You designed an apartment that featured a four-meterhigh cat sculpture. How do you approach designing such bespoke pieces that are both functional and sculptural? It’s impossible to prepare for such tasks in advance. You need to analyze the data and keep the goal of solving a specific problem in mind. In this case, the cat sculpture was designed to allow a crippled cat to land safely from a height, so its shape had to consider that. This applies to design in general—responding to functional requirements in a way that inspires awe.

Given your interest in creating a product brand from your designs, how do you envision your brand's identity, and how will it reflect your design philosophy?

I once thought about pausing interior design to focus on refining a few objects or outlines from earlier projects. However, I’m currently caught up in the whirlwind of solving new design issues. I hope to pursue this idea someday, but for now, my inability to stop reflects my nature.

You mentioned a shift toward postmodernism and a personal, intuitive approach to design. How has your design philosophy evolved, and what influences have shaped this evolution?

The only upside to the passage of time is getting to know yourself and gaining confidence in your worldview. At a certain point in my career, I focused on myself as an individual with my potential, character, resources, and subjective vision of design—and I loved it. Postmodernism supports that, so I embrace it. I’ve also realized that interior design has a limited range of influence compared to architecture, where I began my career. The whimsical “because I want it that way” in interior design is the essence of freedom, something I wouldn’t feel in architecture due to the greater sense of responsibility involved.

Timeless elegance meets modern innovation in this 200m² Warsaw apartment, designed by Kasia Baumiller. Set within a renovated early 20th-century tenement, the space harmoniously blends historic charm with bold, contemporary elements.

For more of Kasia's work visit: www.katarzynabaumiller.com www.instagram.com/katarzynabaumillerstudio

This exquisite 61,5m2 apartment above on Lwowska Street, Warsaw, beautifully captures Kasia's magnificent design sense and is currently on the market. It's a rare opportunity to own a piece of art in the heart of the city.

For inquiries, contact Kinga Sistermann at Partners International: 604 102 084

EVENTS

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

and economy

THE BELGIAN BUSINESS CHAMBER GOES LOCAL!

Between April and June 2024, the Belgian Business Chamber (BBC) embarked on a series of visits to three regional Polish cities: Gdańsk, Katowice, and Poznań. The aim of these trips was to showcase the presence of Belgian companies not only in Warsaw but also in various other Polish cities.

With over 50 Belgian companies active in the Pomeranian voivodeship (mainly in the transport sector), Gdańsk was a key destination for the Chamber. The BBC visited the Stocznia Cesarska project, a revitalization initiative led by two Belgian companies and BBC members, Revive and Alides. These companies are currently transforming the historic Gdańsk shipyard into a vibrant business hub, and the BBC was thrilled to witness the project firsthand.

Similar to Pomerania, over 50 companies with Belgian capital are active in Silesia, which is the fourth most popular destination for Belgian investors in Poland. Silesia maintains a strong presence in both the production and services sector. The Chamber traveled to Katowice for a series of events including a seminar on using Artificial Intelligence (AI) in Human Resources, which was organized in collaboration with Belgium’s SD Worx. SD Worx is a leading HR software provider, and has been very successful in the Polish market providing innovative solutions that are revolutionizing the HR landscape.

To finish the tour, the BBC visited Greater Poland, which is the second most popular region for Belgian capital after Mazovia. At its final stop in Poznań, the BBC partnered with its members at BPI Real Estate Poland, Cavallia, Revive and VPK Packaging to outline and recognize regional achievements. With their innovative approaches BPI Real Estate Poland, Cavallia and Revive are positively contributing to Poland’s booming real estate sector. VPK Packing, headquartered in Września and with production facilities in both Radomsko and Brzeg, has demonstrated a combination of both Belgian entrepreneurial excellence and strong family values.

Overall, the Belgian Business Chamber aimed to emphasize the importance of the regional development of its members in Poland as well as the collaboration between Belgian and Polish businesses.

Find out more here:

Highlights from past events

RESILIENCE AND STRATEGIC SHIFTS IN CENTRAL AND EASTERN EUROPE AMID CRISIS

On March 20, 2024, the Oeconomus Foundation and Warsaw School of Economics hosted a conference in Budapest titled "Economic and Energy Challenges in Times of War and Global Turbulence." The event highlighted the resilience of Central and Eastern Europe, particularly Hungary, in navigating recent crises. Experts agreed the region has even gained certain advantages. Energy independence and infrastructure were focal points, with discussions emphasizing the shift away from Russian energy and the challenges of adopting renewable sources. The conference underscored the importance of strategic foresight in crisis management.

BUSINESS-CHANGING LESSONS FROM INFOSHARE!

InfoShare 2024, the largest tech conference in CEE, just concluded, leaving behind impactful insights. AI was a major focus, with global leaders sharing strategies for enhancing businesses through ethical AI implementation. Beyond AI, speakers like Kacper Raciborski explored futuristic tech trends, while Jowita Sewerska discussed the sustainable bioeconomy’s influence on enterprises. Additionally, the challenges and benefits of hiring Gen Z workers were highlighted. The conference also featured the Startup Contest, attracting 257 startups from 31 countries, providing them with a platform to showcase their innovations and secure vital funding.

KEY INSIGHTS FROM EMVA BUSINESS CONFERENCE 2024

The EMVA Business Conference 2024 in Gdansk brought together nearly 100 C-level executives from vision tech companies. With 130 bilateral B2B meetings, the event was a hub for networking and idea exchange. Keynote speaker Sudha David-Wilp emphasized the geopolitical impact of the upcoming U.S. election, urging Europe to strengthen defense and reduce dependency on China. Another highlight was India's emerging role as an investment destination, despite its challenges. Technical presentations covered innovations like adaptive optics, hyperspectral imaging in food safety, and AI-driven robotics. The conference concluded with a focus on automation's critical role in future industries.

EVENTS

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

Announcements

33RD ECONOMIC FORUM: SHAPING THE FUTURE OF CENTRAL AND EASTERN EUROPE

The 33rd Economic Forum, set to take place from September 3-5, 2024, in Karpacz, Poland, stands as the most significant conference in Central and Eastern Europe. Over the course of three days, this prestigious event will convene more than 6,000 leaders from over 60 countries, including prominent figures in politics, economics, and society. The Forum is recognized as a vital platform for addressing critical issues such as security, economic growth, and the challenges of overcoming crises.

With more than 350 debates scheduled, the Economic Forum will foster a dynamic exchange of ideas and innovative solutions. The event’s international scope offers a unique opportunity to move beyond stereotypes, replacing them with well-founded perspectives based on informed discussions. Participants will have the chance to engage with a diverse array of viewpoints, gaining insights that are crucial for shaping future policies and strategies.

For over 30 years, the Economic Forum in Karpacz has played a pivotal role in the region, attracting global media attention and generating declarations that resonate far beyond the conference itself. The discussions and outcomes from the Forum are expected to influence economic and political discourse on a global scale, making it an essential event for those invested in the future of Central and Eastern Europe. As the region continues to navigate complex challenges, the Economic Forum remains a beacon for innovative thinking and strategic leadership.

BPM 2024: LEADING INSIGHTS IN BUSINESS PROCESS MANAGEMENT

The Business Process Management Conference (BPM) 2024, the foremost event for researchers and practitioners in Business Process Management, will take place in Krakow, Poland. This conference will feature keynotes from three distinguished speakers:

Alexander Serebrenik (Eindhoven University of Technology) will explore the social aspects of software engineering in his talk, "Studying Humans in Software Engineering."

Flavia Santoro (University of the State of Rio de Janeiro) will discuss "Ethics in BPM," emphasizing responsible practices.

Tomasz Głowacki (Żabka Group) will address the future of retail with "Next Generation of AI-driven Retail Processes."

Attendees can look forward to presentations, discussions, and valuable networking opportunities.