A bank tax “will appear, maybe even this year,” says the finance minister
FMCG giant Eurocash has finally come to a deal with Emperia
Fiat is banking heavily on the new Lancia vehicles it will produce in Tychy
9
5
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VOLUME 17, NUMBER 1 • JANUARY 10-16, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
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Upwardly mobile market
REAL ESTATE
Ownership shake-ups and a battle to upgrade infrastructure mean the mobile network operator market is changing rapidly 12-13
SHUTTERSTOCK
Lokale Immobilia
• Construction challenges • Promenada sold • National Stadium gets a roof 15-18
Voice of the People’s Party Eugeniusz K∏opotek of the Polish People’s Party talks contemporary politics and future elections 6-7
Audit & accounting companies 20-21
News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . . . .5 Interview . . . . . . . . . . . . . . . . . . . .6-7 Listed Firms . . . . . . . . . . . . . . . . . . .9 Business Environment . . . . . . . . .10 Opinion . . . . . . . . . . . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Business Community . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Entertainment . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23
¸UKASZ MAZUREK/WBJ/SHUTTERSTOCK
In this issue
Currency intervention
Today’s fix, tomorrow’s cost
It looks as though the state intervened in the currency market at the end of 2010 to avoid austerity measures 10
The government’s short-sighted pension reform plan may well hurt public finances in the long term 3,11
A GUIDE TO POLISH EXPORT will hit shelves in March 2011! For advertising and promotion opportunities contact: Agnieszka Brejwo: abrejwo@wbj.pl; (+48) 639-85-68, ext. 226
2
NEWS
www.wbj.pl
Rates rise in January? The governor of the National Bank of Poland said last week that Poland should raise interest rates to “initiate zloty appreciation,” to help offset inflationary pressures. “I definitely believe that rates should be raised preemptively, not just in case,” Marek Belka told Reuters. The news helped the z∏oty to post its largest gains in nearly two months. A rate rise is widely anticipated in Q1, potentially this month.
JANUARY 10-16, 2011
IN THE SPOTLIGHT
Nord Stream pipeline worry The section of the Nord Stream gas pipeline that could potentially obstruct the entry of larger ships into the Polish port of ÂwinoujÊcie has already been laid, Rzeczpospolita reported. In June 2010, Polish authorities filed an appeal with the German Hydrographic and Marine Agency in Hamburg as to the planned depth of the pipeline, which connects Germany and Russia via the Baltic Sea, but they have so far received no response. The Polish side still has time to convince the investors to place the pipeline deeper, but according to the paper’s sources, there is not much room for movement.
Gasoline past z∏.5 mark Drivers in P∏ock and Warsaw were paying z∏.5.09 for a liter of 95octane gasoline last week. At the beginning of December, following a first round of increases, the average price of 95octane in Poland was z∏.4.75. ●
z∏.15 billion
Krzysztof Kolberger (1950-2011)
is the amount that the Treasury expects to earn from privatization efforts in 2011, according to the budget
z∏.22.156 billion is how much the Treasury actually took in last year from privatizations, 88.6% of the planned total
z∏.29.947 billion is how much the Treasury earned last year from privatizations if initial agreements are factored in, 119.79% of the planned total
4% is what some are forecasting for 2011 GDP growth
Poland to wait out euro crisis
Quote of the Week “I have doubts that the Russians are telling the truth”
EASTNEWS
Poland will wait until the euro zone settles down before it makes any moves toward entering the 17-member bloc, Finance Minister Jacek Rostowski said last week. Asked by reporters if Poland intended to join the euro zone, Minister Rostowski said, “I think it’s best that we sort out some of our problems first, but we are very confident that we will.”
Numbers in the News
Edmund Klich, Poland’s representative in the Smolensk crash investigation, gives his opinion on Russia’s claims that recordings of talk between the air-controllers and the crew of President Kaczyƒski’s plane are lost
Krzysztof Kolberger, a renowned P olish actor and theater director, died last Friday at the age of 60 following a 20-year struggle with cancer. During his 38-year career, Mr Kolberger worked in the National Theatre in Warsaw as well as in the capital’s Wspó∏czesny and A teneum theaters. Some of his more memorable roles included “Konrad” in A dam Mickiewicz’s “Dziady” and “Staƒczyk” in Stanis∏aw Wyspiaƒski’s “Wesele.” Poles will also remember him for numerous roles in films by directors including Andrzej Wajda and Krzysztof Zanussi. Recent film work included “Katyƒ” and “P opie∏uszko.
WolnoÊç jest w nas.” Mr Kolberger was wellknown for his interpretations of poetry and acclaimed reciting abilities. In 2005, during the period of mourning following the death of P ope John Paul II, he read out the pope’s last will, which he later described as one of the greatest challenges in his whole acting career. Despite his long illness, Mr Kolberger never gave up his work. “I have known from the very beginning that I have to learn to live with it, giving up on as little as possible of what I have been doing so far. Thus, in a sense perhaps little has changed in my life because I continued to work. And I still
do because I want to live and in order to live I have to work,” he said in an interview last year. Mr Kolberger was born in Gdaƒsk in 1950. In 1972, he graduated from the State Academy of Drama in Warsaw (today the Aleksander Zelwerowicz State Theatre Academy), making his theatrical debut in the Silesian Theatre in Katowice. Mr Kolberger had once been married to actress Anna Romantowska with whom he had a daughter, the actress Julia Kolberger. In recent years, he had been in a relationship with journalist Zofia Czernicka. Adam Zdrodowski
Figures in focus Growing wages, but not everywhere Estimated y/y change in real agricultural income* per worker, 2010
60 50 40 30 20
EU27
10 0 Denmark Estonia Germany Poland Hungary Czech Italy Romania Republic
UK
*income generated by agricultural activities over a given accounting period Source: Eurostat
On WBJ.pl A troubling start WBJ.pl sits down with Bart∏omiej Nowak, executive director of Warsaw’s Center for International Relations, to discuss Hungary and P oland’s turns at heading the r otating EU Council presidency in 2011
Company index AIP 3 Investment ................18 Eurocash ................................9
RKD Architects ....................17
Allcon Investment ................18 Europejskie Centrum
Ronson
Alma ......................................16 Odszkodowaƒ ........................9 American Chamber of
Fiat ..........................................5
Commerce in Poland ..........14 France Télécom ..................12
Audytel ..................................12 ING ........................................14 Strabag ................................18 Bank Gospodarstwa
Inpro ......................................16 Studio Architektoniczne
Bank Zachodni WBK ..........10 Poland ..................................18 Bomi ........................................9 Intrall ....................................12
January/February 20 Event:
TAX CONGRESS KPMG’s 1st Taxation & Accounting Congress – a unique event wholly devoted to changes in taxation and accounting in force since January 1, 2011. The congress has been designed for CFOs, chief accountants, heads of financial reporting and controlling, and participants from other managerial positions. Participation in the congress is free of charge. For more information, visit kpmg.pl
21-30 INTERNATIONAL FOOD AND AGRICULTURE FAIR Event:
International Green Week Berlin. The world’s biggest fair for food, agriculture and horticul-
ture. Poland is the official partner country in 2011
25-26 ONLINE TRAVEL INDUSTRY CONFERENCE Event:
e-Travel Forum 2011 – an annual, international conference dedicated to the issues of online sales of travel products. www.e-travelforum.pl/en
JAN 31 – FEB 1 INVESTMENT CONFERENCE Event:
CEE Investment and PPP. Developing Sustainable Relationships. Location: InterContinental Warszawa. ww.easteurolink.co.uk/ CEE-Investment-and-PPP
Sadovaya Group ....................9
Goodman Group ..................15 SGI Baltis ..............................15 Real Estate ..........................16 Huawei ..................................13 Skanska Property Poland ..18 Atrium European
Krajowego ......................10, 14 Intel Technology
DATELINE
Development ........................16
British Polish Chamber of
InvestGDA ............................15
Kwadrat ................................18 SUD Architectes ..................18 Tauron ....................................9
Commerce ............................14 Jones Lang LaSalle ............16 Tempora ................................18 BSC Drukarnia
KGHM ....................................12 British-Polish Chamber of
Opakowaƒ ..........................4, 9 Kodak ....................................23 Commerce ............................14 Cadbury ..................................5 KPMG ..........................2, 14, 17 French Chamber of Carpathian PLC ..................16 Kraft ........................................5 Commerce and Industry in CB Richard Ellis ..................17 Logan Investments ..............17 CEEC Research ..................17 Mermaid Properties ............17 Poland ..................................14 Centrum Medyczne
Miller, Canfield, W. Babicki, A. German-Polish Chamber of
Enel-Med ..............................14 Chelchowski & Partners ....13 Industry and Commerce ....14 Cinema City ..........................16 Multimedia Polska ..............12 Scandinavian-Polish Citi Handlowy ........................3 Neinver ..................................18 Chamber of Commerce ......14 Coface Poland ......................17 Norstat .................................. 17 Toshiba ..................................23 Crownway NSN ......................................13 Investments ..........................17 Pekaes ..................................15 Tradis ......................................9 Cushman &
PKN Orlen ............................12 Unibep ..................................15
Wakefield ........................16, 18 PM Group ..............................17 Vectra ....................................12 Deutsche Telekom ..............12 PMR Publications ................17 Vivendi ..................................12 Domesta ..............................16 Polish State Vodafone ..............................12 Eko Eksport ............................9 Railways ................................18 Volvo ......................................14 Elektrim ................................12 Polska Grupa Emperia Holdings ..................9 Energetyczna ........................12 Warbud ..................................16 Ericsson ................................13 Polska Telefonia Cyfrowa ..12 Wizz Air ..................................4 Ernst & Young ......................18 PZU ..........................................9 WSE ..................................9, 12
NEWS
JANUARY 10-16, 2011
www.wbj.pl
3
Pension reform
A government proposal to reduce payments to private pensions funds could improve public finances, but only in the near term
The government’s proposal could lower state borrowing needs by 0.8 percent of GDP in 2011 and enable the government to deal with bigger FX fluctuations without public debt rising above 55 percent of GDP, a threshold that, if crossed, would require the implementation of austerity measures.
Plans to reduce cash transfers to private pension funds (OFEs) from 7.3 percent to 2.3 percent of Polish workers’ pay could have far-reaching consequences for financial markets. Since the implementation of a 1999 pension reform, the transfer of money to private pensions funds has caused a shortfall in the payment of current pensions. A ccording to Citi Handlowy’s estimates, this shortfall adds significantly to the fiscal deficit (an amount equivalent to 1.6 to 1.7 percent of GDP in 2010) and public debt (approximately 15 percent of GDP in 2010).
An elegy for equity? Shoring up the state’s finances is widely viewed as the main purpose of the proposal. But the outcome could be less pleasant for investors and the WSE. Private pension funds are major investors in the Warsaw Stock Exchange as well as in the Polish bond market. Thus a reduction in their investment capacity could mean greater uncertainty and lower stock values on the bourse. Citi Handlowy calculates that with the proposed changes, even if OFEs were to increase
the percentage of annual contribution transfers invested in equity to 60 percent (compared to 35 percent in 2010), they will still spend over z∏.1 billion less this year than last. However, according to Maciej R apkiewicz, an expert on public finances at the Sobieski Institute, a think tank, the move should not destabilize the Polish stock market. Future pensioners on the other hand, may feel a difference. P rivate pension funds have posted better returns on investments than their state-run peer, ZUS, ever since the 1999 reform. “The return is approximately 200 percent higher for OFEs than for ZUS, and also higher than bank deposits and government bonds,” said Mr R apkiewicz.
Short-term solution The money invested by private
pension funds constitutes a long-term investment at a time when the government is itching to improve its present debt and deficit figures. But the proposed reform is likely to result in a permanent reduction of the importance of capital markets in the P olish pension system. A ccording to the plan, contribution to OFEs will increase to just 3.5 percent in 2017, still less than half of the current amount. “I understand the current fiscal situation and would accept a temporary decrease of transfers [to private funds],” said Wiktor Wojciechowski, an economist at the W arsaw School of Economics and the Civil Development F orum Foundation. But in his opinion, the danger of the current plan is that the bulk of pension benefits will be dependent on political will rather than on the capital mar-
COURTESY OF THE CHANCELLERY OF THE PRIME MINISTER
Short-term budget fix could hurt in the long run
Mr Tusk wants the pension reform implemented by April
ket, while failing to provide a durable solution for the public finances. Prime Minister Donald Tusk has said he would like the
reform to be implemented as early as April of this year, and analysts think it likely that the proposal will make it through Alice Trudelle the Sejm.
Democracy in Belarus
Infrastructure minister survives no-confidence vote
Poland takes proactive steps to build democracy in Belarus
A no-confidence vote failed, but Mr Grabarczyk will have to rebuild confidence in his ministry
The government has called on the West to fund the Belarusian opposition
Mr Grabarczyk hasn’t lost the confidence of the PM Polish building laws. Mr Grabarczyk was stoutly defended by Prime Minister Donald Tusk, who said he had refused the infrastructure minister’s offer to resign. The PM said that when it came to building roads and highways, his government had completed 1,048 km of new roads, while the two previous governments had built less than half as many. “You are the last people who can lash out at Mr Grabarczyk. You could above all present your own vote of no confidence, because you
have shown P oles how good you are at building roads and highways,” Mr Tusk stated. In turn, Jaros∏aw Kaczyƒski, leader of the opposition Law and Justice (PiS) party, wasted no time in lambasting Mr Tusk and his government. “This is a scandal and it shows that matters of merit have no meaning whatsoever in present day Polish politics ... I believe P rime Minister Donald Tusk knows perfectly well that in fact his whole government should be dismissed,” he commented after the vote. Remi Adekoya
In response to the Belarusian government’s crackdown on dissidents after the December presidential election, P oland has adopted a unilateral strategy aimed at supporting the opposition movement and isolating the Lukashenko dictatorship. Rather than waiting for a broad response from the EU, Poland has taken steps on its own to galvanize support for democratic activists. Most recently, Polish officials have asked the US to provide funds for dissidents, invoking the memory of American aid for Poland’s Solidarity trade union during communist rule. “What comes to mind is the role that W estern free institutions played in bringing about freedom to P oland,” Robert K upiecki, P olish ambassador to the US, told the Associated P ress. “ And this is why Belarus needs our solidarity today.” A number of countries, including the US, will be invited to a donors conference in Warsaw at the start of F ebruary in a bid to raise funds for democratic activists and opponents of incumbent President Alexander Lukashenko. Some 700 people, including seven candidates who ran against Mr Lukashenko, were arrested in Minsk at a mass
rally held shortly after the ballot. The US and other Western nations condemned the act of repression and have described the elections as illegitimate. The US itself has not yet decided on a policy response. Poland, however, has been quick to spell out its own strategy, which is aimed at developing civil society in Belarus by fostering mutual connections. “We want to help our neighbors strengthen their European identity by enabling them to have more frequent contact with Poles and other citizens of the European Union,” Foreign Minister R ados∏aw Sikorski
told the press, explaining the abolishment of the €20 visa fee for Belarusians traveling to Poland. Other moves include extending P oland’s Belarusian-language television service to Belarus and opening universities to Belarusian students banned from studying at home due to their politics. Poland has also established a center for the Belarusian opposition in Warsaw. With nearly 80 percent of the vote, President Lukashenko was re-elected for a fourth term in December. He has been in power since 1994. Gareth Price
COURTESY OF FOREIGN MINISTRY
Cezary Grabarczyk, Poland’s beleaguered infrastructure minister, survived a no-confidence vote last week, despite continuing frustration with the way his ministry has handled winter transport chaos. One hundred and ninetytwo MP s voted to defenestrate Mr Grabarczyk, but 229 MPs from the ruling coalition backed him, defeating the motion. A simple majority is needed to pass a vote of no confidence. The motion was put forward by the Democratic Left Alliance, which said that the minister should be held responsible for the turmoil in the railway system caused by new train schedules implemented in mid-December. Many passengers had problems getting information about the new schedule as departure and arrival times available on the internet differed from those at the train stations. As a result, there were huge delays and many people spent long hours in transit during and after the Christmas holidays. The minister was also blamed for delays in the road and highway construction program and for not initiating changes to cumbersome
COURTESY OF WIKIMEDIA COMMONS/PAWE¸ ZIENOWICZ
Politics
Foreign Minister Rados∏aw Sikorski wants to increase interaction between Poles and Belarusians
NEWS
www.wbj.pl
Pole new face of Victoria’s Secret
Smolensk report
Poland pressures Russia on crash probe “No certainty” regarding President Komorowski's plan to visit Russia in April
Wizz Air increases Polish presence Low-cost airline Wizz Air flew 4.1 million passengers on connections to and from Poland in 2010. That’s 14% more compared to the previous year, according to the gazeta.pl website. The carrier now intends to add flights from Gdaƒsk to Stavenger and Arhus, and from Poznaƒ to Barcelona.
Daring deer rescue Polish firefighters last week rescued two deer stranded on ice floes in the Baltic Sea. One was chased back to land, but rescuers had to brave perilous conditions to reach the other. In a video of the rescue, four men in a boat are shown picking their way through floating ice late in the evening.
Thomas Na∏´cz, the president’s advisor on national history, told daily Gazeta Wyborcza, “There is still no absolute certainty.” “A great deal depends on how [the investigative team] proceeds with finalizing the disaster report,” he explained, adding that the response of the victims’ families would also be important in deciding whether the president attended the anniversary. Prime Minister Donald Tusk rejected the initial findings of Moscow’s Interstate Aviation Committee’s (MAK) draft report in December, calling the dossier “unacceptable.” He added that he considered some of the conclusions to be “baseless.” Details of the
Continued wrangling over the preliminary findings of R ussia’s official investigation into the Smolensk crash has cast doubt over P resident Bronis∏aw Komorowski’s plan to commemorate the tragedy on April 10 in Russia. Poland’s ambassador in Moscow, W ojciech Zajàczkowski, had previously told news agency Interfax that Mr Komorowski intended to be in Russia for the first anniversary of the crash, in which President Lech Kaczyƒski and 95 others perished. Asked about this last week,
report have not been made officially available. “The disaster would have been avoided if not for the decision to land. But putting the blame solely on the pilots [as the Russian dossier reportedly does] would be too simple,” Mr Tusk said last week, adding that the air traffic controllers were also partially to blame. Justice Minister Krzysztof Kwiatkowski told RMF FM recently that if Russia did not take into account Poland’s official 150-page analysis on MAK’s report into the crash, then P oland could look elsewhere for help in clarifying the causes. He even mentioned the possibility of getting assistance Gareth Price from the US.
Nine months after the crash, its cause is still unknown
European Union
Poland’s EU presidency at risk?
Hungary’s odd politics have raised concerns for its presidency of the EU Council and complicated things for Poland This year has been hailed as the year of Central Europe, with Hungary heading the sixth-month rotating presidency of the European Council from January 1, followed by Poland in July. But the Hungarian government, in power since May, has already drawn broad criticism. “Poland will have to work harder, because nobody knows what the image of the presidency will be after Hungary finishes the job,” commented Bart∏omiej Nowak, executive director of W arsaw’s Center for International Relations.
COURTESY OF WWW.EU2011.HU/ANDRAS PETER NEMETH
Polish model Magdalena Fràckowiak has been chosen as the face of the spring/summer 2011 collection of Victoria’s Secret’s Pink line of loungewear. The 27-yearold is currently ranked 15th among Models.com’s Top 50 Models. Fellow countrywomen Anja Rubik and Anna Jagodziƒska have also appeared in VS shows in the past two years.
JANUARY 10-16, 2011
COURTESY OF WIKIMEDIA COMMONS/SERGE SEREBRO
4
Off to a rough start? Perhaps the most controversial action of Hungary’s ruling center-right party, Fidesz, is a law enacted in late Decem-
ber that tightens the government’s grip on the media. Although the EU has not officially condemned it, many
voices in Europe claim it constitutes a breach of EU laws on press freedom. Prime Minister V iktor Orbán’s government has also been pursuing a controversial economic policy, increasing taxes and nationalizing the pension system rather than cutting spending. This has irked the IMF and several large foreign companies, and has prompted ratings agencies to significantly downgrade the country’s credit rating. Hungary’s leadership of the EU might even be more precarious than that of the Czech Republic, whose government collapsed in the middle of its presidency in 2009, Mr Nowak said. But, he said, the P olish administration is well prepared to helm its own presidency starting in July.
This is good news, because expectations for the P olish presidency are high. The size of the country, its good economic performance, successful policies in Europe and improved relations with Russia and Germany have all raised the stakes. Nevertheless, the heads of several P olish think tanks warned in a letter published recently in Gazeta W yborcza and The Economist that parliamentary elections scheduled for this autumn, when the Polish presidency will be in full swing, constitute a serious threat. The letter urged politicians to pledge not to use the presidency as a political tool and warned against the absence of ministers from EU Council meetings to pursue their campaign at the national level. Alice Trudelle
Euro zone
Estonia adopts the euro, despite uncertainty
40-car pile-up leaves two dead
The Baltic state welcomes the common currency amidst gloom in the euro zone
Two people were killed and five hospitalized last Tuesday in an accident involving 40 cars on an ice-covered, fogshrouded stretch of the A4 motorway located near the city of Gliwice. Prosecutors have already begun investigating the causes of the pile-up, which is the third accident to have occurred at the same location in recent weeks. ●
On January 1, 2011, Estonia became the 17 th country and the first former Soviet state to adopt the euro. It’s likely that several years will pass before another nation joins the euro club, but officials and analysts were generally positive about the move. “The single currency will provide a stable framework for the Estonian economy, which together with sound fiscal and macro-economic polices will create the basis for economic
prosperity,” Olli Rehn, European commissioner for economic and monetary affairs, said in a statement. Despite the doubts looming over the future of the common currency, in the long term adopting the euro will prove a good move for Estonia, agreed Adam Czerniak, an economist at Invest-Bank. Estonia’s €14 billion GDP accounts for a mere 0.2 percent of the euro zone’s economy. Because of its size,
COURTESY OF WIKIMEDIA COMMONS
Mr Czerniak explained, it makes economic sense for the country to have the same currency as its trading partners. The Estonian kroon had been pegged to the euro for over a decade and reforms have righted the country’s fiscal position after the global slowdown. But despite European Commission President José Manuel Barroso’s comment that the event repre-
sented a “strong signal of the attraction and stability that the euro brings to member states,” the move is not expected to prompt a race towards euro adoption. Lithuania and L atvia are set to adopt the currency in 2014, but bigger CEE countries have avoided setting target dates. Poland, the Czech R epublic and Hungary, all of which pledged to join the currency when entering the EU, are now far from meeting the necessary criteria and are not expected to do so before the second half of the decade. Alice Trudelle
INDUSTRY NEWS
JANUARY 10-16, 2011
www.wbj.pl
Poland to tax the banks
Automotive manufacturing
The Panda was once synonymous with Fiat's Tychy plant
The Italian carmaker expects a new Tychyproduced Ypsilon model to help boost sales Fiat CEO Sergio Marchionne is counting on the new Lancia Ypsilon to help triple sales of the L ancia brand, Rzeczpospolita reported. The car will be produced at the Fiat plant in T ychy, Silesia voivodship.
His plans call for 300,000 Lancias to be sold in 2014. In 2010, sales of all Lancia models reached 113,000, including 30,000 of the current Ypsilon. To start with, Fiat would like to see 130,000 units of the new Ypsilon sold annually. This model will be officially unveiled at the International Motor Show in Geneva this March and will hit dealer showrooms in June. But are Fiat’s plans realis-
tic? A ccording to W ojciech Drzewiecki, sector analyst from Samar, this depends on several factors. “First of all, the new model has to be unveiled and then presented to the public in an attractive light ... in Poland, the pricing will be a key factor, as the older L ancias were very expensive,” Mr Drzewiecki said. “If the marketing and pricing of this car is right, then I believe yes, it has the potential
Cadbury shuts down historic plant and moves production to Poland
The closure of a Cadbury factory is bitter for Britain, sweet for Poland A Cadbury factory in Somerdale, England, has produced its last chocolate bar, meaning all production can now be shifted to the company’s Skarbimierz plant in southwestern Poland. A total of 300 people will gain employment at the Polish facility, while 400 workers at the UK plant will lose their jobs once machinery at Somerdale has been dismantled. Most of
the chocolate made in P oland will be transported 1,200 miles to Britain, a fact which has invoked the ire of environmentalists, who complain about unnecessary “food miles.” American food giant Kraft assumed control of Cadbury last year after a bitter, but ultimately successful hostile takeover worth £11.9 billion. The US company initially said that it would reverse Cadbury’s decision to close the plant and shift production from Somerdale to Skarbimierz, but backtracked after it won control, saying the plan
Alexander Hayes
Remi Adekoya
Mr Rostowski plans a new bank tax
COURTESY OF WIKIMEDIA COMMONS
New rules for ownership of infrastructure debated
was too advanced to reverse. Explaining Kraft’s decision, CEO Irene R osenfeld said Cadbury had already invested more than £100 million in improving its Polish factories, partly in readiness for the transfer. The Somerdale factory had been in operation since 1919, when it began making F ry’s Chocolate Creams. It later specialized in the production of bars that were dipped in chocolate, such as the Curly Wurly, Double Decker and Crunchie. Gareth Price
Mr R ostowski, “but to save the people who deposited their money and those who took out loans from these banks.” “We haven’t had a financial crisis in this country, like in many other European countries … because we have healthy banks. But we should prepare for the future,” he said. “All over Europe such funds are being established and we are doing so in a proactive manner,” he added.
legal news
Confectionery
A relic of the days when Cadbury was Cadbury’s
Poland plans to introduce a bank tax, Finance Minister Jacek V incent-Rostowski confirmed last Wednesday in an interview for Polish Radio. Mr R ostowski said that such a tax “will appear, maybe even this year.” The proceeds from the proposed levy are to be placed in a special fund that would be used to rescue the banking system should a large bank in Poland be faced with bankruptcy. The money would not be used “in order to save the owners of the banks,” stated
COURTESY OF ROGI¡SKI, CIR
COURTESY OF FIAT
Fiat counting on Tychy plant to boost Lancia Ypsilon brand to increase sales.” He added, “Another important aspect will be the perception of the car’s quality, which must be improved and I believe that L ancias produced in the Tychy factory will be of much better quality than those which have been produced in Italy up to now.” To date, only 200 pre-series Ypsilons have been built in Tychy. Series production is to be launched in the spring and the plant plans to produce 60,000 vehicles by the end of 2011. The start of Ypsilon production is important for the Tychy facility, since production of a new Panda model is being moved to Pomigliano d’Arco in Italy and orders for the previous version will fall. Enrico Pavoni, CEO of Fiat Auto P oland, estimates that total production at the plant will reach 530,000 vehicles, assuming a production target of 130,000 Ypsilons annually. Fiat has invested z∏.1.4 billion in the production launch of the L ancia in P oland. Another €100 million will go into the preparation of components made outside of Poland and on tests conducted in Italy.
5
The change concerns provisions defining the criterion for qualifying for benefits providOn December 15, 2010, the first reading of the ed by the act as well as provisions defining the act amending the Civil Code took place in the period of protection against the dismissal of Sejm. The act is to introduce a wider scope of employees of businesses which are experiencexceptions regarding the connection of owner- ing interim financial difficulties and are beneship of transmission equipment with the own- fiting from statutory aid. The amendment is ership right of the land on which such equip- intended to loosen some restrictions on previous provisions. ment is placed. The new provisions will come into force in Pursuant to the basic rule of the civil law, stages: on March 1, 2011; June 1, 2011; and all buildings and other structures which are January 1, 2012. permanently connected to a real estate are owned by the owner of the real estate regardless of who has erected the equipment. Until Draft changes to the VAT act now transmission equipment such as pipelines On December 14, 2010 the government and electricity lines which have been connect- accepted a draft change to the act on tax on ed with an enterprise (like a power plant) have goods and services (V AT). Pursuant to the been the only exception. Now, infrastructure new regulations, entities which settle tax in connected with railway transport, tramways, import will not need to submit a security on telecommunication lines and other networks the amount of tax. of a similar nature are also to be included as What is more, the draft expressly indicates exceptions. who the taxpayer is in activities conducted by The draft amendment is of significant taxpayers which do not have a seat, place of importance for ownership relations within the domicile or a permanent conduct of activity in scope of telecommunications or railway trans- the territory of P oland. Pursuant to the new port. law, in such cases the tax will always be settled by the purchaser of the services or goods. The draft also abolishes the prohibition Changes to the anti-crisis act On January 1, 2011, an amendment to the act against deducting input tax in case of import of services if the payment is made for the benefit of of September 29, 2010, on the mitigation of entities which have their seat, place of domicile the consequences of the economic crisis for employees and entrepreneurs came into force. or management in a so-called tax haven. ●
Compiled by Peter Nielsen & Partners Law Office Contact: Miros∏aw Stefanik, ms@pnplaw.pl
6
INTERVIEW
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Obama to come to Poland in May? Advisor to President Bronis∏aw Komorowski, professor Roman Kuêniar, has told Gazeta Wyborcza that US President Barack Obama could attend a summit of leaders of Central and Eastern European countries to be held in Poland this May. However, Mr Kuêniar could not say for sure if the visit would actually take place.
Agricultural exchanges for sale The Ministry of Treasury is putting eight food and agricultural wholesale centers up for sale. Farmers and producers are afraid, however, that the new owners will transform the centers into supermarkets with cheap foreign food. First on the list for privatization is the Bronisze Wholesale Market, located near Warsaw. Products sold here go to over 14 million consumers in Poland and throughout the world. ●
JANUARY 10-16, 2011
Politics
K∏opotek touts PSL’s liberal–conservative mix
Eugeniusz K∏opotek, an MP from the P olish People’s Party (PSL), talks with WBJ about his party’s place in politics, issues facing the country and plans for this year’s elections Ewa Boniecka: How would you assess your party’s position in the shifting Polish political scene? Eugeniusz K∏opotek: In the changing political scene PSL remains a permanent, lasting element. What’s more, we maintain the stability of the democratic system because of our ability to be a reliable coalition partner. W e do not take radical positions and we bring some moderation to political life. How do you define PSL’s identity? For a long time, many people looked at PSL as a party representative of one class, thinking and caring only about the rural population. This is certainly an unfounded view, because while we are obviously aware of our rural primary elec-
torate, the problems of people outside this group are equally important to us, as we have shown more than once. We are a national party and our attitude is to deal with problems all over the country. And our position and strategy on the EU was proven right, as we supported Polish accession to the EU during the difficult time of the referendum. Let me define our three main areas of interest: one is our traditional rural environment; the second is local government; and the third is support for small and mediumsized Polish companies. If we focus on these three areas, I am convinced – contrary to opinions that the time has passed for parties in European countries aimed at rural voters – that the P olish People’s Party will remain on our
political scene for many years, as it responds well to the needs of our society. We combine the ideals of modernization with traditional values, with which P oles are highly engaged. I think that our approach to politics is becoming more attractive to the public and that we can look for support from as much as 20 percent of Poles.
“We combine the ideals of modernization with traditional values” How do you reconcile the traditionalism and conservatism which are deep-rooted in PSL with liberalism in dealing with the economy? I do not see any contradictions in this. The Polish farmer was an entrepreneur even in the days of communist rule, being
at the same time strongly attached to national traditions, Christian values, to family, to the land. So if our party is conservative in ethical and moral values, then we are – as I mentioned – good liberals in economic matters. I say “good liberals,” because for many people economic liberalism equates to bloodthirsty capitalism. As PSL, we have a different point of view on the principles of the social market economy. This means saying “yes” to the market and liberal economy, but with certain limits, so that the excessive enrichment of some people does not come as a result of the excessive deprivation of others. And here the role of the state is needed. Thus we support a strong, well-functioning state. What are the main differences between PSL and Civic Platform [PO]? One is the approach to privatization. For Civic Platform, the most important thing is capi-
tal, and people come later; for PSL people come first, so our parties must seek a compromise in order to reconcile these two elements. We believe that the privatization process must give a chance and some preference mainly to Polish workers and Polish entrepreneurs. W e support the form of direct privatization at the staff-management level, based on Polish capital and supported by loans from state-owned bank BGK. Of course, being a member of the EU, [Poland] does not discriminate against foreign capital – we need foreign investments, but we do not agree to open the door to speculative capital. PSL has always emphasized that strategic economic sectors such as energy, railways and state forests should not be privatized, and on these issues we have disputes in the coalition. There is also a long-standing dispute over the Agricultural Social Insurance Fund
INTERVIEW
JANUARY 10-16, 2011
Sejm Speaker and PO politician Grzegorz Schetyna has said that the coalition with PSL will be difficult in the lead-up to the parliamentary elections this year as PSL achieved good results in 2010’s local elections and would like to emphasize its identity. What do you think? I think that both substantial and tactical differences will be apparent, as they exist in the party programs and political practices. Of course our party does not want be merged with
PO in the parliamentary elections – our political parties have different identities and their own interests. So maybe cooperation within the coalition government will be more difficult in an election year, but I’m sure that everything will go well, because our political parties are working together for the development of Poland
amount of money coming to the Common Agricultural P olicy may be reduced, and there are also proposals to move away from direct subsidies for farmers. Perhaps some changes would be beneficial for Poland? Our agricultural sector is in a different situation than those
effective as possible, we must build an alliance with other countries and share our concerns. And our government, including the minister of agriculture, Marek Sawicki of PSL, is making such efforts. Which party do you see as your main competitor in the
COURTESY OF RMATEUK
[KRUS]. What is your view on the issue? In its electoral program, Civic Platform talked about the liquidation of KRUS. Currently our colleagues from PO have drawn some conclusions and no longer talk about liquidation, but rather reforming KRUS. And we have no objections to steps leading to reform of the system. We have given the green light to making this work, aiming to introduce in the future a common agricultural tax, but indicating that if the tax is introduced then the current agricultural tax must be eliminated, because farmers cannot pay twice. We’ll see what happens, because among the 1.5 million Polish households which are insured [through KRUS], only 300,000 generate revenue and 1.2 million do not generate income and yet have to contribute to KRUS. These are the so-called social farms, where people often live in deprivation. Thank God that the farms exist and maintain their owners, because if they fail these poor peasants will request social services from the state and our budget would not be able to bear that extra burden. A reform of KRUS should be treated with great caution and should be linked to reform of the Social Insurance Institution [ZUS], which costs the budget z∏.80 billion per year. Or maybe we should take into account the ideas presented by the P olish P eople’s P arty’s leader, Deputy Prime Minister Waldemar Pawlak, that everyone pays one, equal, not very high insurance, and then, after reaching retirement age, every insured person would receive an equal but a modest pension from the state. Such a universal pension system exists, for example, in Canada, where people have to save for a decent old age or pay lots of money to various private funds to add it later to a state pension.
Mr K∏opotek says his party brings do wn-to-earth sensibility to the government
and feel a common responsibility for those actions. In this coalition PSL is the junior partner, but remains very useful for PO. We bring a lot of common sense and down-to-earth sensibility to this government. We are facing a very difficult European Union budget for 2014-2020 and the Common Agricultural Policy is being attacked by some members of the Union. What is your view on this situation? I look at it with a certain amount of pessimism. Some members of the EU are demanding that the fees they pay to the EU budget be lower in the future. If that should happen, this would affect the entire budget and it would be very unfavorable for Poland. Secondly, it appears that the
of the old members of EU, where farmers were provided with support for many years, so their systems feature modernized agriculture and farmers there are doing well. Currently, some of the richer countries are unwilling to provide direct support for farmers in poorer, newer members, because they have other priorities. If the Common Agricultural Policy is amended in the 2014-2020 budget and direct support to farmers is restricted, Polish economic interests will be harmed. The burden of support for our social farms will rest on the national system alone. Thus Poland has every reason to fight against changes to the EU’s Common Agricultural Policy. But to make this strategy as
traditional rural environment? During the upcoming elections, every party is a competitor, as each looks for support. Some of our potential voters may be fooled by nice words and empty slogans, later coming to regret it. Our main competitor in the parliamentary elections, mainly in villages and small towns, is P iS [L aw and Justice], but I see that the party’s radical and militant rhetoric is discouraging an increasing number of people. So I think our party, with our solid experience and good program for P oland, will win rural voters and also reach out to people in the cities, to entrepreneurs, to the academic community, as well as to other new voters. And life
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outside big cities is becoming fashionable, many professionals are choosing to work in the countryside, so I believe that our electoral potential will continue to grow. How much of a chance do you give the new parties, Poland Comes First [PJN] and the Movement of Palikot? I think PJN is more likely [to succeed] than the Movement of Palikot, because I think this is the end of Janusz P alikot’s political career. PJN is not offering its own program – it takes some things from PO, some things from P iS, and tries to sell it as something new. Maybe PJN will take some voters from P iS, some from PO, but it will not be a competitor for PSL. Do you think that the catastrophe in Smolensk and the ongoing investigation will play an important role in the parliamentary elections? Yes, because everything indicates that it will still take a long time before all the facts and causes of this tragedy are known. In recent weeks the truth of the Smolensk catastrophe has become increasingly blurred. Setting aside the Russian side of the investigation, when I look at what is happening on the Polish side I hear conflicting signals from different investigative groups, and there are divided opinions among the victims’ families. All of this worries me, because we all have the right to learn the truth about the Smolensk catastrophe, although it will be painful. Another worrying factor is the use of this catastrophe in political battles. P iS is doing this and I consider the battle over who is entitled to the legacy of P resident L ech Kaczyƒski as false. I’m surprised that PJN wants to compete with PiS over this, as it is obvious that Jaros∏aw Kaczyƒski, as brother of the late president, has the advantage in claiming this legacy. Another issue is the use of this legacy by [Kaczyƒski] and his party to pursue a political struggle with all others. This is poisoning our lives, not just at the political level, but also morally. PSL does not participate in these battles – we are waiting for the outcome of the final report. But I doubt that it will bring us peace or end political exploitation of the tragedy. ●
7
Polish gov’t confident on public debt Poland’s Ministry of Finance estimates that public debt for the year 2010 will be below 53.5% of GDP, said Dominik Radziwi∏∏, deputy minister of Finance, in a statement to the Polish Press Agency. If public debt levels exceed 55% of GDP, constitutionally mandated austerity measures automatically come into force. On the basis of available data, Treasury debt was at the level of z∏.702 billion, about z∏.4.5 billion less than forecast, Rzeczpospolita reported.
Number of bankruptcies decreases The number of companies going bankrupt is decreasing, business daily Parkiet reported. According to an analysis carried out by Coface Poland, 665 companies went bankrupt last year. This is about 5.2% less than in 2009. The greatest improvement can be seen in the transport industry, where the number of bankruptcies has fallen by 23% y/y. Nevertheless, 2010 was still unkind to the construction industry. Last year, 98 construction companies went bankrupt – a 35% increase.
Record year for Polish sea ports Polish sea ports loaded 61.7 million metric tons of goods last year. That is 30% more than in 2009, and 20 percent more than in 2008, which had been the previous record year. The main contributor was the port in Gdaƒsk, where 27.2 million tonnes of all goods were unloaded. The positive trend is expected to continue this year. On the back of the high shipment volumes, the Baltic sea ports noted very positive financial results. ●
LISTED FIRMS
JANUARY 10-16, 2011
Warsaw Stock Exchange
Taking stock of the decade
Taking stock of 2010
Poland’s bourse had a strong 2010 and expects more good fortune this year The Warsaw Stock Exchange hit an important milestone at the close of 2010 when Europejskie Centrum Odszkodowaƒ (ECO), a provider of insurance claim recovery services, became its 400th concurrent listing. The P olish bourse has hosted a considerably higher number of listings over the years – 533 in total, as of December 31, 2010. But the natural attrition of delistings, M&A deals and bankruptcies kept the number of concurrent listings well below that. Attrition was not a major concern in 2010, though. Thirty-four companies joined the bourse, while 13 delisted. And ECO’s historic listing was quickly followed up by a 401st listing, that of Ukrainian collier Sadovaya Group, which also became the 27 th foreign firm trading on the WSE’s main floor.
A year of recovery Reaching the 400-company mark capped off a successful year of recovery for the WSE.
Total market capitalization rose by 11 percent y/y and was close to double the market cap figure reported at the end of 2008. The average value of trading per session was up 17 percent, while trade in futures and options were also up. Only bond trading was down in 2010, by 14 percent in terms of both total value of trading and average value per session. A number of high-profile events contributed to the WSE’s good fortunes last year, including the megadebuts of insurer PZU and utility Tauron, as well as the less voluminous but psychologically significant IPO of the bourse itself. Adding to the good PR were the launch of energy trading and the announcement of a new index illustrating which firms are best at paying out dividends. This index, the WIGdiv, was put into service last week. The WSE’s alternative market, NewConnect, was also a source of strength for Warsaw. It saw a respectable 86 debuts in 2010, meaning its total constituency as of December 31 was 185 firms,
Debuts and listings on the Warsaw Stock Exchange as of Dec 31 of each year, 2000-2010 Debuts
up 73 percent y/y. Market cap doubled last year and the value of trading tripled. At the end of December, Eko Eksport, a producer of microspheres, became the 10th firm to move from NewConnect to the main market.
Perceptions of growth The Warsaw Stock Exchange has already welcomed its first debutant of the new year, packaging producer BSC Drukarnia Opakowaƒ, and others are in the pipeline. This T uesday the bourse is hosting an “IPO Day,” during which three soon-to-debut firms will introduce themselves to investors. There is some concern that, in the short term at least, the WSE may face some difficulties. Analysts polled by Parkiet have predicted that stocks will fall in the early part of this year, bouncing back in the second quarter. But there’s little sign of worry among representatives of the bourse. Buoyed by the successes of last year, the WSE is bullish about its prospects for 2011. Speaking with P olish Radio about the one-hour lengthening of trading hours
Eurocash, P oland’s largest FMCG retailer by market share, will buy elements of the distribution arm of its smaller competitor Emperia Holdings. The deal, reached on December 21, was made public on January 4. It comprises shares in 17 companies in Emperia’s distribution group, Tradis, and has been valued at z∏.926 million. “We are delighted that we managed to reach an agreement and defended ourselves against a hostile takeover,” Artur Kawa, CEO of Emperia Holding, said in a press
release. WSE-listed Eurocash’s earlier bids to merge with its rival via a share swap were repeatedly rebuffed, with Emperia arguing that the deal significantly undervalued the company. Eurocash offers valued Emperia at around z∏.1.3 billion, while Mr Kawa said his company was worth between z∏.2.1 and 2.3 billion. The current deal was described by Emperia’s CEO as beneficial to all parties. “We are confident that the conditions of the agreements are very beneficial to the
shareholders of our company. … Inclusion of the T radis group to Eurocash is beneficial for all parties, including Emperia and definitely Tradis, its employees and customers,” said Mr Kawa. Further consolidation of the market might include WSE-listed Bomi, one of the largest delicatessen chains in Poland. Emperia recently announced that it was interested in a merger in H1 of 2011, and the company has not denied that Bomi is indeed the targeted Alice Trudelle rival.
COURTESY OF EUROCASH
Eurocash buys distribution assets from Emperia
The deal that was finally struck by Eurocash and Emperia was worth z∏.926 million
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9
WSE trading sessions extended
Listings
90 80 70 60 50 40 30 20 10 0
450 400 350 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Regaining ground WSE market capitalization (in z∏. billion) as of Dec 31 of each year, 2000-2010 1,200
The first extended session on the WSE was no different than the previous, shorter ones. The WSE’s daily turnover was around z∏.500 million. The market did not react to good news from the US, where indexes soared after stock exchanges started the day. Experts say the effects of the extended hours can be evaluated no sooner than in a few weeks or even months.
First IPO of 2011 on WSE a success
1,000 800 600 400 200 0 2000
2001 2002 2003 2004 2005 2006 2007 2008 2009
2010
Source: Warsaw Stock Exchange
which came into effect this year, WSE president Ludwik Sobolewski expressed confidence that it would be for the long-term good. “Without a doubt the change will have a positive
influence on the perception of the Polish capital market, on interest in the various financial instruments on offer, and not only stocks,” Mr Sobolewski said. E Blake Berry
The WSE’s main market saw its first debut of the year last Tuesday. The débutante, Polish packaging producer BSC Drukarnia Opakowaƒ, also became the 402 nd company trading on the Polish bourse. On offer were three million shares at a base price of z∏.17.50, valuing the IPO at z∏.52.5 million. The stock rose 1.14% to 17.70 at the open of trade. ●
10
BUSINESS ENVIRONMENT
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Public debt
JANUARY 10-16, 2011
EU funds
Did currency sale help avert painful cuts? Poland beats
expectations on funds
The government reportedly intervened to manipulate the z∏oty at the end of 2010
SHUTTERSTOCK
A last-minute move by the government may have helped keep the country’s public debt below the politically and economically significant level of 55 percent of GDP at the close of 2010. State-owned Bank Gospodarstwa Krajowego sold off between €1.2 billion and €2 billion at the end of last year in order to strengthen the z∏oty, keeping the debt-to-GDP ratio below 55 percent, daily Rzeczpospolita reported traders as saying. Breaching the 55 percent threshold would have triggered constitutionally enshrined austerity measures designed to balance the budget. The Finance Ministry could not be reached to comment on the report. A spokesperson for BGK declined to comment, noting that the bank does not provide information concerning market transactions. For many years the z∏oty has remained generally free of state interference. However, during the economic crisis its price grew more volatile, forcing decision makers to change
The country has absorbed almost 60 percent of its 20072013 EU funding
A huge sell-off of euro reportedly helped to firm up the z∏oty
their approach on currency management. The government has now, via the Finance Ministry and the central bank, intervened several times to strengthen or weaken the z∏oty. Official commentary has also been used to steer the Polish currency. At present the government appears to want to avoid weakening the z∏oty in order to help it pare down debts. “This time the government had an interest [in selling] because it decreases the value of foreign debt held in z∏oty,”
said Piotr Bielski, senior economist at Bank Zachodni WBK. Although the central bank has not publicly stated that it targets specific exchange rates, its actions suggest that it does keep a certain range in mind. “Government actions can be expected when the z∏oty sharply appreciates or depreciates (EUR/PLN close to z∏.5.0 or below z∏.3.0) or when public debt comes close to reaching 55 percent of GDP ,” said Adam Narczewski, an analyst at X-Trade Brokers. Poland’s currency reserves,
however, are not so large that the government can afford market operations when there is no real danger, he cautioned. The Finance Ministry announced at the end of last year that Poland’s public debt was under 53.5 percent of GDP. Poland’s public debt will stay under 55 percent of GDP this year if the government is able to implement its plan to slash mandatory payments to private pension funds, Finance Minister Jacek Rostowski said last week (see story, p. 3). Gareth Price
By the end of last year, Poland had spent almost 60 percent of its EU funds for the 2007-2013 budget period. Moreover, despite pointed criticism from some quarters, the country managed to exceed expectations for fund absorption in 2010. According to R egional Development Minister El˝bieta Bieƒkowska, as of December 31, 2010, over 50,000 contracts for co-financing had been signed. The total value of these agreements is z∏.223.4 billion, of which z∏.154.4 billion is funded by the EU. The latter figure constitutes 58.1 percent of the EU funds allocated to P oland for the 2007-2013 budget period. Meanwhile, the government had originally expected to receive z∏.27 billion in refunds from the EU last year for expenditures on cofinanced projects. In the end, however, it got z∏.35.7 billion. Of the z∏.9 billion surplus, z∏.6 billion had been transferred to government accounts by the
coming in february
2011
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end of December. “An increasing amount of EU funds are coming into Poland, leading to the development of our enterprises and the creation of new jobs. As of the end of last year, the European Commission had refunded us almost €15.3 billion [for the 2007-2013 period],” Minister Bieƒkowska told the press. Ms Bieƒkowska stated that this made P oland the leader among new member states in terms of EU fund absorption, and that the €15 billion figure exceeded the total received by the next seven countries combined. Next year, P oland expects to present the EC with around z∏.40 billion in refund requests. At the same time, despite fears that Poland’s voivodships might have problems with efficient EU fund absorption, the regional authorities seem to be handling the process well enough. By the end of 2010, all 16 voivodships had spent and accounted for more than 20 percent of the amount allocated to them in the R egional Operational P rogram [for 2007-2013], which oversees fund distribution at the voivodRemi Adekoya ship level.
OPINION
JANUARY 10-16, 2011
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11
The false choice between pensions and the budget
M
inister without portfolio Micha∏ Boni was making the rounds with the P olish press last week, talking up and defending the government’s plan to “reform” Poland’s pension system. The highly controversial plan looks to move some of the money currently transferred to private pension funds onto the books of the Social Insurance Institution, or ZUS. This newspaper opposes the plan on the grounds that it would be a step backwards for Poland’s relatively modern pension system, one that would make Polish pensions more dependent on the government – which we view as more risky than market solutions – and that will likely take much-needed capital away from listed companies, as well as momentum from the Warsaw Stock Exchange.
Boni’s knotty argument Mr Boni described P oland’s predicament with regards to pensions and state finances as a Gordian Knot, in which the government needs to preserve the security of pensions for future generations but must also maintain fiscal responsibility in the short term. The only way to accomplish both, he argued, is to implement the
government’s solution – moving some 68 percent of workers’ contributions to private funds, or OFEs, to accounts managed by ZUS. This would put the money on the government’s books, allowing it to slide under the 55 percent debt-to-GDP threshold that, if crossed, would legally require the government to institute austerity measures. Here it’s important to pause and explain what is going on here, as contemplating the complexities can cause vertigo. Currently, the government takes a certain percentage of P oles’ paychecks and puts it away towards their pensions. That amount is divided between the OFEs – which are private, for-profit entities that invest the money in stocks and bonds – and ZUS. This system is the result of a 1999 reform intended to maximize both pension payouts and the security of pensions, a feat engineered by some of Poland’s brightest economic minds at the time. However, the result is that to support current pensioners, the government has to pay out of its own pocket – rather than from the current payments coming in, as in many Western European countries – and this exacerbates the debt. With EU budget deficit and
debt targets to meet, the government sees taking money away from the private pension funds and putting them in ZUS accounts (which it promises will still be designated for future pensioners and indexed with growth of the
“It is precisely the motive for profit that benefits Polish workers” economy) as a way to put money on its balance sheet, giving its present finances some relief.
Closing the door on OFEs The only problem is that the OFEs would lose huge amounts of funding. The government says this isn’t a problem, since OFEs are currently required to spend the majority of their funds on government bonds anyway. By taking that money directly, the government says, the money isn’t being “recycled,” and the private funds can can still spend nearly the same amount as they used to on stocks. One thing this argument ignores, however, is the fact that drastically cut-
Finally, the government argues that Poles’ pension contributions are safer in government hands. With the recent near defaults of countries like Ireland and Greece, that argument is hardly credible.
ting funding to OFEs will plainly result in fewer opportunities for profit. The government counters that OFEs would make z∏.460 million on commissions in 2011, and would likely make z∏.680 million in 2012 – all on the backs of the poor P olish worker. That’s hardly a free-market attitude. Must we remind them that it is precisely the motive for profit that benefits P olish workers, whose pensions increase as a result? Another concern is that, rather than cutting out the “recycling” element, private pension funds will simply continue to split their reduced funds between stocks and bonds. This will deprive the stock market and its constituents of tremendous amounts of capital. The government responds that it will introduce a new option, allowing Poles to contribute another two to four percent of their income (which would be tax-deductible) to private funds. Moreover, the government cites analysts saying that 70 percent of P oles might choose to do so. That’s possible, though it sounds optimistic. In practice, will Poles part with four percent more of their paycheck for their pensions, when the government is already taking out a significant chunk for that same purpose? Time will tell.
A false choice Even if the government is right, and assuming they are able to implement these changes without hurting P oles future pensions or the stock market’s current returns, there remains another problem. The choice the government is presenting – between payouts to pension funds and fiscal responsibility – is a false one. There is one more option that the government hasn’t even mentioned: cutting from government bureaucracy and entitlements. This newspaper has, with somewhat tiring repetitiveness, laid out where specific cuts could be made before. But this is an election year, and the government is unwilling to make moves that could prove politically costly next autumn, even if they would serve the country better for many autumns to come. How to encourage a group of politicians to champion budget cuts in an election year? Now that is truly a Gordian Knot. ●
An alignment of interests between Poland and Sweden
T
wo seemingly unrelated events on January 5 suggest that Russia’s Baltic Sea neighbors, Poland and Sweden, are sending a warning to Moscow. First, Polish Ambassador to Russia Wojciech Zajàczkowski said in interviews with Interfax that Warsaw is actively seeking to diversify its gas supply away from Moscow. The comment followed Zajàczkowski’s public statement on January 4 regarding Poland’s extremely critical view of Russia’s potential basing of tactical nuclear weapons in its exclave of Kaliningrad and the “futility” of the Russian-German Nord Stream pipeline, which the ambassador criticized on economic and environmental grounds. Meanwhile, on January 5 the Swedish Parliamentary Defense Committee forwarded a formal question to Foreign Minister Carl Bildt on how Stockholm intends to respond to Russia’s planned purchase of two French Mistral-class helicopter carriers. Russia signed an official agreement with France to purchase the two carriers, with an option of two more being built in Russia. The first hull is tentatively scheduled for delivery this year and is officially supposed to be based with the Pacific fleet. However, the second will most likely be based in the Baltic Sea, which has irked Baltic states.
Notable timing The timing of both events is notable. Though only recently finalized, the Mistral purchase has been in the works for more than a year, and Poland’s unease with dependency on Russian natural gas is certainly not new. Therefore, both the Swedish
parliament’s sudden interest in the Russian-French military deal and the Polish ambassador’s generally aggressive interview – which received considerable negative coverage in Russia – should be considered in the context of the region’s evolving geopolitics. First, both statements closely follow Belarus’ presidential elections, the subsequent crackdown on opposition leaders during a rally to protest President Aleksander Lukashenko’s re-election and Moscow’s support for the regime despite the clashes. Europe, led by the Polish-Swedish
“Poland and Sweden ... are watching Moscow’s moves carefully” Eastern Partnership initiative, has been hoping that it could slowly erode Moscow’s grip on Belarus’ geopolitical alignment. However, the result of the presidential elections effectively ended that. The Polish-Swedish statements also follow recent successful moves by Russia in the Baltic states to increase its influence beyond traditional levers – such as influencing Russian minorities in Latvia and Estonia – to increasing economic and political influence as well. A December visit to Russia by Latvian President Valdis Zatlers illustrated the increased economic links between Moscow and Riga, with Russia becoming Latvia’s secondmost-important investor after Sweden. Russia also has effectively increased its influence in both
Latvia and Estonia through patronage of relatively pro-Russian political parties (which are now emphasizing their broad appeal), Harmony Center and the Center Party, respectively.
Allied interests As such, Poland and Sweden – the other two historical powers in the Baltic Sea region – are looking to counter or at least send a message to Russia that they are watching Moscow’s moves carefully. Zajàczkowski’s statements, in particular, should be carefully studied. He was appointed to his post recently by new Polish President Bronis∏aw Komorowski, who has said that the age of knee-jerk anti-Russian policy in Poland is over. Zajàczkowski has also been a close foreign policy adviser to Polish Prime Minister Donald Tusk, who has himself personally worked on improving Warsaw-Moscow relations. As such, Zajàczkowski is not a vestige of the former anti-Russian Polish policy and is very much a representative of the Tusk-Komorowski tandem. If he criticizes Russia’s foreign policy, the highest echelons of Polish leadership approve the statements. Sweden, meanwhile, largely spent 2010 embroiled in a long election season, one of the most contentious in the nation’s recent history. The incumbent center-right government has now returned to power, albeit in a minority. Now Prime Minister Fredrik Reinfeldt and Foreign Minister Carl Bildt can begin concentrating on regional affairs. Bildt has already made a joint visit with his Polish counterpart to advance the Eastern Partnership program in Ukraine and Moldova – specifically to try to
increase the chances of a pro-European Moldovan government – and has hosted the Ukrainian foreign minister in Stockholm. In other words, Sweden made it a point to announce its return to regional politics in December. The question, however, is whether Sweden and Poland are willing to increase their own collaboration in the region beyond active diplomacy. For the past two years, STRATFOR sources in Poland have emphasized Warsaw’s willingness to enhance its relationship with Sweden to include military and security cooperation. STRATFOR is now also hearing similar thoughts emanating from Stockholm.
With the United States – Poland’s traditional post-Cold War security ally – likely continuing to be embroiled in the Middle East for the foreseeable future and refusing to offer Warsaw any robust security reassurances, Poland will be looking for alternatives, at least in the short term. Sweden has traditionally defended its neutrality aggressively and thus has a robust military and arms industry. Its interests are also currently aligned with Warsaw as Moscow continues to expand its influence in Eastern Europe, particularly in Latvia and Estonia. ● “An alignment of interests between Poland and Sweden” is edited and republished with permission from STRATFOR
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COVER STORY
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Two million .pl domains The number of internet addresses with the .pl suffix in Poland has reached two million, Dziennik Gazeta Prawna reported. The historic two millionth address was registered on January 3. Reaching this magic number is evidence of the rapid development of the internet in Poland. It took 17 years to register the first million domains, while the second million took under a year. Last year, an average of 2,900 addresses were registered daily, representing the fastest increase in the EU.
Vectra targets Multimedia Polska Cable operator Vectra has filed an application with the anti-monopoly agency for the purchase of “a part of Multimedia Polska’s interests,” Rzeczpospolita reported. No specific plans have been unveiled yet, however. According to a statement made by Vectra CEO Tomasz ˚uraƒski at the end of last year, the company intends to continue its acquisition strategy, despite the fact that it did not succeed in the buyout of competitor Aster. Doing so would have given Vectra a strong presence in the Warsaw and Kraków markets.
Russian cars, made in Szczecin Russian automotive company Intrall is close to achieving its plan to produce cars in Szczecin, in northwest Poland. An agreement between the investor, the Polish Information and Foreign Investment Agency (PAIiIZ) and the Zachodniopomorskie voivodship marshal is to be signed during the second half of January, reported Rzeczpospolita. The investment is valued at z∏.200 million. The new plant will initially employ 500 people. ●
JANUARY 10-16, 2011
Mobile network operators
Signals of change
Anthony Casey
Shifts in ownership and technology are reshaping the Polish mobile telecommunications market The mobile telecoms industry is thriving in P oland, despite persistent concerns about market saturation. The most recent figures from the Central Statistical Office attest to this fact – at the end of September 2010, there were 46.39 million active SIM cards in the country. That marks a penetration rate of 121.44 percent, up from the 119.82 percent rate seen just three months earlier. Nevertheless, the market faces significant challenges and change is coming rapidly. One event of note occurred last month when Deutsche Telekom took full control of Polska T elefonia Cyfrowa (PTC), operator of the Era brand, after settling a decadelong wrangle with French firm Vivendi and P oland’s Elektrim. A spokesperson for DT confirmed last week that the takeover has cleared the way to rebrand Era as T -Mobile, under which Deutsche Telekom offers mobile network operator (MNO) services elsewhere. “After the closing of this transaction, we would have the opportunity to rebrand [Era] for the first time without any legal risks. We will discuss very closely with PTC ’s management, if and when such a step would be appropriate,” DT ’s spokesperson commented. Audytel, an audit and advisory company specializing in
advanced ICT infrastructure optimization for large companies, believes the switch could happen sooner rather than later. Tomasz Kulisiewicz, the firm’s lead analyst, described the takeover as “good news” for PTC. He stated that the first task under new ownership would be to push past Polkomtel (operator of the Plus brand and current top player by revenue). He added: “I think Era needs rebranding, or at least refreshment of its ageing brand, so it is only a question of when. In the Czech Republic, Hungary and Slovakia, rebrandings were done overnight, practically during one weekend.” Wac∏aw Iszowski, president of the P olish Chamber of Information T echnology and T elecommunications (PIIT), ruled out the possibility of a price war in the MNO market, saying that regulations would not allow it. He also suggested that although DT has traditionally stamped “T-Mobile” on its acquisitions in other markets, Era is a strong local brand brand that might require a different approach: “Perhaps there will be two brands [Era and T-Mobile] on the market for a long time.”
Polkomtel on offer? Nor is PTC the only MNO to have suffered from a disadvantageous ownership structure.
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One of Poland’s 49.39 million STM cards Market leader P olkomtel’s shareholders include oil refiner PKN Orlen, copper giant KGHM, monolithic energy group Polska Grupa Energetyczna and British firm V odafone. It was widely thought that V odafone’s moves to increase its holding over the past few years have been made in preparation for a complete takeover. However, V odafone has stated publicly that this will not happen. “ All the shareholders of P olkomtel have agreed to explore a sale of the company. W e have nothing
more to add to this statement,” a spokesperson for the company told WBJ. A PGE spokesperson, meanwhile, suggested that Polkomtel could be on the market in the near future. Should the shareholders decide to exit P olkomtel through an initial public offering, the event could make history on the W arsaw Stock Exchange. Dow Jones Newswires estimates that Polkomtel could be valued at z∏.12.9 (€3.3) billion. Were that estimate to prove accurate, the firm
Start of a new Era? Deutsche Telekom may well be considering a rapid and complete rebranding of Era to bring it in line with its international T-Mobile operations. PTK Centertel (operator of Orange Polska) did the same with its operations in Poland, with great success. The company launched Idea in 1998, and continued with this brand until it was renamed Orange in 2005. Now, Orange offers ‘micro-brands’ in Poland including POP, Go, Music, Business Everywhere, Free, World and Free-
dom. The change from Idea to Orange did the company no harm. Speaking at the time of the rebranding, Sanjiv Ahuja, then CEO of Orange SA, said: “Orange is one of the bestknown and most powerful communications brands in the world, driving the growth and success of our business across our footprint. It is a brand that customers trust and associate with simple and straightforward products and services that meet their needs and provide them with a unique Orange experi-
ence. We are confident that the introduction of the Orange brand here in Poland will deliver significant success.” He was right, as Orange Polska now has around 14 million customers, according to figures from its parent firm France Télécom’s website. However, DT may have to go to some lengths to make a bigger immediate impression if they do rebrand Era; the Orange switchover was marked with a free Sting concert in Warsaw for 150,000 people.
could comprise more than a quarter of the value of its market. A ccording to PIIT , there are no official calculations of the overall value of the mobile telecommunications market in P oland, but the organization estimates it to be worth some z∏.47 (€12) billion.
Upgrading the networks Irrespective of total market value, P oland’s mobile network operators face major technical challenges. The country’s network is already struggling to meet demand for data-heavy, bandwidth-hungry services. Polkomtel alone has seen a 930 percent increase in data traffic since 2007. That’s according to the company’s CEO, Jaros∏aw Bauc, and other networks claim similar increases. Meanwhile, the state and capacity of P oland’s mobile network lags somewhat when compared to Western Europe. MNOs have spent the last few years upgrading their radio and data transmission infrastructure – in terms of both capacity and quality of tech-
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COVER STORY
JANUARY 10-16, 2011
2G – The first great leap forward after the introduction of first generation mobile technology. This added security to mobile telephony, and allowed smaller, cheaper and less power-consuming cells and handsets. 3G – A step on from 2G, this allows speech and data to be transmitted simultaneously. Data can be transferred from at least 200 kb/sec. 4G – The future. Users in a fixed location will be downloading at up to 1Gb/sec. Even those on the move are offered 100Mb/sec. HSPA/HSPA+ - High Speed P acket A ccess. It allows download speeds of up to 14Mb/sec and upload speeds of 5.8Mb/sec. HSPA+ is a more advanced version that began to be taken up internationally last year. ITU-R – The ITU R adiocommunication Sector. One of three arms of the International T elecommunication Unit, which manages radio frequencies used by mobile technology. LTE – L ong Term Evolution. The latest mobile telephony standard. Close to the requirements for 4G, but not quite there. Expect faster, cleaner data transfer as LTE Advanced becomes more fully developed. RAN – R adio A ccess Network, a technology linking a handset to a network. WiMAX – a protocol allowing fixed and mobile internet access at up to 40Mb/sec. nology – at a faster pace. A t present, the most up-to-date technology in P oland allows transfer speeds of up to 21.6 Mb/second and is available in between 10 and 12 of the largest cities. According to PIIT , voice services are already available “in virtually every corner of Poland.” High-speed data services, however, are available for
around 60 percent of the population – and there are still places, mostly in areas of low population density, where these services are sketchy at best. PIIT believes that some of the coverage problems could be resolved by new regulations which are currently being deliberated. These would allow the Office of Electronic Communications (UKE) to remove some administrative restrictions on the siting of equipment, for example. Ultimately, however, it will be up to the network operators themselves to ensure they have the right technologies in place to meet forthcoming challenges. “Each of the operators relies on the fact that its infrastructure functions the best, and each is responsible for maintaining it. Where appropriate, it is expanded, except in places where there are problems with obtaining building permits,” said Mr Iszowski of PIIT. Tomasz K ulisiewicz of Audytel said that P4, operator of fourth-place mobile brand Play, currently has the most up-to-date infrastructure, consisting solely of 3G-capable equipment. But he stated that mobile infrastructure overall in P oland cannot cope with current demand, and would not, as it stands, be able to handle the increased burden expected from full-blown 4G service. “Demand is growing quickly both in the number of dedicated SIMs and in traffic. All the networks will need continuous upgrading, as is the case all over the world. MNOs will choose the model of upgrade: standalone, on the basis of RAN sharing agreements, or in a model known already from the UK – Everything Everywhere, a radio-infrastructure of Orange and T-Mobile – and some other countries,” Mr Kulisiewicz said. He added, “The running of radio infrastructure is already outsourced to various vendors such as NSN, Ericsson and Huawei. Last year PTK Centertel and PTC signed a letter of intent on outsourcing.”
The (not so near) future is 4G But Mr Kulisiewicz also stated
Mobile roaming charges Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners. fogo@pl.millercanfield.com
Poland’s mobile phone infrastructure is already struggling to cope with current demand that MNOs still have time to get their technical upgrades in place, as true 4G capability is still a way off for the world.
“Today’s LTE is still not the full 4G. We will not see full 4G in 2011” “Strictly speaking, today’s LTE is still not the full 4G. We will not see full 4G in 2011 ... Detailed specifications of IMT-Advanced [or true 4G] are expected by end of 2011, with approval at the R adiocommunication Assembly [in Switzerland] in January 2012 at the earliest. This means that we can expect a real 4G only from 2012 to 2015,” he stated. In Poland, there is certainly no sense of panic when it comes to implementing 4G. In spring 2010, UKE consulted the major players in P olish telecommunications regarding the availability of the 2.6 GHz bandwidth, upon which 4G services will depend. After a consultation period, the telecoms watchdog decided to
auction the bandwidth at a later date. A spokesperson for UKE said that planned changes to the conditions of the tender meant that the consultation would be carried out again. He added: “As of today, no decision has yet been taken regarding the subject of future auctions, which after analysis and consultation may, but need not, be changed.” The allocation of the 2.6 GHz bandwidth depends in part on all countries agreeing to set it aside for 4G use. Russian P resident Dmitry Medvedev signed an agreement regarding the use of these frequencies during his December visit to W arsaw, but agreements with other neighbors to the east still need to be finalized. All signs point to change for the P olish market then, albeit that of the evolutionary rather than the revolutionary variety. Market pressures are pushing MNOs to upgrade, but not at breakneck speed. The important question for players in the market – and their investors – is who will get there first? ●
Looking forward Audytel’s “R aport T elekomunikacyjny 2010” predicts an average annual growth rate of 2.7 percent between now and 2015. This is significantly lower than the boom of 2003 to 2008, when the telecommunications market grew at least 5.5 percent per year. The report states: “Shifts in the shares of individual market segments will continue to be clearly visible due to big differences in terms of the growth rate of the fixed telephony, mobile telephony, internet access and leased lines and data transmission markets.
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Legal Eye
SHUTTERSTOCK
The technical stuff
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“Internet access for residential users is forecast to maintain the strongest growth over the next five years. As a result, its less than four percent share in the overall telecommunications market in 2003 will go up to approximately 10 percent in 2015, with the average annual growth rate in the region at five percent. Internet users’ growth rate is declining, but at the same time there is a shift towards higher rates that enable the use of a broader range of services.” From PIIT, a more cautious forecast: “It seems that the crisis of lost value of the
ICT market in Poland in the years 2008 and 2009 is already behind us. We anticipate growth [in the value of the] telecom market on the order of two-four percent per year, while it will largely depend on the development of content deals in Polish and the development of information services available via the internet. “As always, many issues may be complex, because it is a regulated market. But as it evolves, it will also be stabilizing. An important element is to choose the path of development of technology and access to broadband.” ●
Four years ago my wife and I visited Greece for a week. We purchased one of the allinclusive travel packages on offer. All-inclusive, however, did not include my wife’s telephone calls to her mother in P oland. Nor my calls back to the office. A few weeks after returning home, the true cost of our all-inclusive vacation arrived in the mail … in the form of a telephone bill. A t the time our carrier in Poland charged us a roaming fee of €1.32 per minute to use our mobile phone in Greece. W ithout giving away the total, let’s just say that we learned our lesson regarding roaming charges. And apparently we were not alone. In 2007 the European P arliament and Council adopted a regulation (EC R egulation 717/2007) to cap roaming charges within the EU following consumer complaints.
EC Regulation 717/2007 At the time of its adoption on June 27, 2007 by the European P arliament, the authors of the Roaming Regulation cited the need to create a European social, educational and cultural area based on the mobility of individuals. The lowering of roaming charges is intended to achieve this goal by facilitating communication between people across the EU. The R oaming R egulation sets a cap on the amount a carrier may charge a mobile phone user to place a call from another EU member state, as well as surfing the internet and sending and receiving text messages. The first caps took effect in 2009, with further reductions introduced in 2010 and more scheduled to take effect in mid-2011. When the final caps take effect later this summer, the surcharge to place a call outside of your network will be limited to €0.35 per minute, while the cost to receive a call will be limited to €0.11 per minute. The cost to send an SMS will be limited to €0.11, regardless of the length of the text message. Receiving a SMS is currently free-of-charge and will remain so. R eceiving voicemail messages while travelling is also free. On average, roaming charges have fallen
73 percent since the European Parliament and Council first took up the issue of roaming charges in 2005. To avoid unexpected surprises, the Roaming Regulation also introduces a default cut-off for surfing the internet while traveling within the EU. As of now the monthly roaming charge to surf the internet while traveling outside a user’s network is automatically capped at €50. Unless the user has agreed to a higher limit, internet access will be blocked once the internet access charges reach €50 in a given month while traveling. Moreover, a network operator is now required to send a warning to a user once he or she reaches 80 percent of his or her roaming charge limit.
Polish regulator Poland’s telecom regulator, the Office of Electronic Communications, is charged with enforcement of the Roaming Regulation in P oland. In addition to enforcement of the new lower roaming charges, the Office of Electronic Communications is currently working on a plan to reduce the cost of mobile phone calls within Poland. At present the Polish Regulator proposes to lower the tariff for mobile phone use to z∏.0.1223 by 2012, which is in line with the EU Commission’s recommended rate of no more than €0.03 per minute by 2012.
Polish operators In comparison to the charge of €1.32 per minute we paid to use our mobile phone while in Greece in 2006, today the same call would cost €0.39, a reduction of 70 percent. As of this summer the rate will fall another 10 percent to €0.35 per minute.
Calls outside the EU The R oaming R egulation caps roaming charges in the EU. Not elsewhere. Each year I am reminded of this when we visit my parents in the States and my wife again calls her mother back in Poland. But hope springs eternal and this past summer I discovered Skype, the free-ofcharge voice over internet service to make long-distance calls to and from just about anywhere. ●
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BUSINESS COMMUNITY
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Chambers of Commerce Corner Views Poland gets closer to PPP lift-off from the British Polish Chamber of Commerce blog by Michael Dembinski Public private partnerships (PPPs) are seen by many as a solution to the problem faced by many countries – namely meeting growing demand for infrastructure in the face of increasing public sector debt. A PPP is a project in which the private sector finances, designs, builds, operates and maintains public infrastructure. In Poland, PPPs have singularly failed to happen, despite a new PPP law that’s far less proscriptive than the old law it replaced. While the government has published a list of over 40 projects, most of these are really concessions (where the public pays directly for the use of a facility such as a car park, toll road or sports hall) rather than ‘true PPP,’ where the operator is paid by the public sector for making the infrastructure available for public use. And of the remaining concessions, experts assess many of these projects as being unfeasible or unlikely to happen. If we are to analyze why PPP has failed to take off in Poland, at the heart of the answer must be the public sector’s reluctance to attempt projects this way. Talk of the “fourth P” – the prosecutor – has scared off many local authorities. An atavistic mistrust of a profitmotivated private sector also lurks at the heart of public sector attitudes towards PPP. Looking at the UK – unquestionably the world’s leader in PPP, with over 750 projects completed – one reason why the public sector was so quick and so effective at adopting PPP is the role of Partnerships UK.
This body, which emerged from HM Treasury, is tasked with supporting the public sector in moving ahead with PPPs. Partnerships UK (now itself a public-private partnership) offers its expertise to local authorities, ministries and government agencies. It is able to look at a given project as it is being structured and assess whether the financing would be considered public debt or not (“on-” or “off-balance sheet”); whether the risks in the projects have been properly identified and divided; and indeed, whether or not PPP is the optimal way of going ahead with the project. Until now, Poland has not had such a public-sector PPP champion. At a recent meeting of the Senate’s National Economy Commission, it was agreed that Poland needed such a body if it were to move ahead with PPPs on the scale required to deliver the country’s infrastructural needs. Of the solutions presented, the most convincing came from Bank Gospodarstwa Krajowego (BGK), which is 100 percent-owned by the Finance Ministry. The BPCC’s members with an interest in seeing PPP take off in P oland are all companies with extensive experience of structuring and implementing PPP s. On December 16, members of the BPCC’s PPP policy group met at BGK to brainstorm how Poland’s PPP Competences Centre should look, how it should be financed and how it should best operate to ensure that at last things can move forward. The BGK is not yet ready to go public with the conclusions reached at the forum. ●
News Celebrating Christmas
COURTESY OF AMCHAM
International Christmas Evening in Wrocław
Some of the largest international chambers of commerce in P oland got together in December to throw their traditional annual International Christmas Evening. The Wroc∏aw Puppet Theatre played host to the gathering, which was held on December 8. A range of seasonal music from around the world was celebrated during the event.
A choir of children from the British International School of Cracow in W roc∏aw sang carols from all over the world against a backdrop of dim candle light and the decorative glitter of Christmas trees. A Wroc∏awbased gospel group, the Spirituals Singers Band, followed this with their own renditions of traditional Christmas carols. Alongside the musical festivities, P olish Christmas cuisine was served, a lottery was drawn and a fortune teller was on hand to prophesy the future for those brave enough to listen. The International Christmas Evening in Wroc∏aw was co-organized by the American Chamber of Commerce in Poland, the British-Polish Chamber of Commerce, the French Chamber of Commerce and Industry in Poland, the German-Polish Chamber of Industry and Commerce and the Scandinavian-Polish Chamber of Commerce. KPMG and Centrum Medyczne EnelMed were the platinum sponsors of the event; ING and V olvo were golden sponsors. Warsaw Business Journal was the main media partner. ●
Upcoming events BPCC Business Mixer Date and location: January 27, 6:30 PM (after registration) at Confashion Cocktail Bar & Restaurant.
For more information, log on to www.bpcc.org.pl
AmCham workshop on leadership development process for high impact Date: February 3
For more information, log on to www.amcham.pl
BPCC meeting on new Telecoms, Media and Technology policy group Date and location: January 19, 9-12 PM, at the British Embassy in Warsaw, ul. Kawalerii 12. Please register your interest by sending an e-mail to: gabriela.jatkowska@bpcc.org.pl.
JANUARY 10-16, 2011
Lokale Immobilia looks at the challenges ahead for the construction industry
Warsaw’s Promenada shopping mall has been sold for a tidy sum
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LOKALE IMMOBILIA
W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n r e a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t
Pekaes sells Grzybowska 81 Transport, forwarding and logistics group Pekaes last month signed a sale agreement with construction group Unibep concerning its Grzybowska 81 property in Warsaw. Pekaes’ deal with Unibep concerns perpetual usufruct rights to a 2,248 sqm plot in the Wola district. An office building is expected to be developed at the site. Unibep will acquire the real estate if Warsaw City Hall does not exercise its preemption rights to the property. ●
In this issue National Stadium topped out . . .15 Goodman’s Gdańsk deal . . . . . . . .15 Inpro’s IPO . . . . . . . . . . . . . . . . . . . . .16 Promenada sold . . . . . . . . . . . . . . .16 Ronson in Szczecin . . . . . . . . . . . . .16 Property-related stocks . . . . . . . .16 Construction forecast 2011 . . . . .17 Neinver’s Katowice work . . . . . .18 WWII Museum financed . . . . . . . .18
National Stadium topped out Poland’s new flagship stadium has entered the final stage of construction The National Stadium in Warsaw held its topping out ceremony last week, as its 1,800metric-ton steel roof was raised to a height of 34 meters above the future pitch. Together with its 70-meter spire, the structure now towers more than 100 meters above the nearby Vistula River. The raising of the roof, which began on December 15, was a critical operation in the construction schedule. Its completion marks the start of the final stage of work on the National Stadium, a key venue for the Euro 2012 soccer championship, which is to be hosted jointly by P oland and Ukraine.
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Developer SGI Baltis has launched construction on its Copernicus Park multi-family residential development in S∏upsk, Pomorskie voivodship. Located on ul. Miko∏aja Kopernika in the city’s downtown area, the scheme will comprise 180 units realized in two stages. The first apartments in Copernicus Park are scheduled for completion in Q3 2012. The development has been valued at almost z∏.40 million. SGI Baltis is present in both the residential and office sectors of the Polish property market. The firm is currently involved in 11 projects across Poland.
JANUARY 10-16, 2011, LI 16/01
Sport infrastructure
The 55,000-seat National Stadium project will cost z∏.1.915 billion
At the topping out ceremony last T uesday, W arsaw Mayor Hanna GronkiewiczWaltz flipped the switch to illuminate the stadium. “This will be a place of joy for the thousands, hundreds of thousands, millions of people who will visit the stadium,” Prime Minister Donald T usk said. “It is also a good time to prove to all the doubters, all the skeptics, that impossible things become possible when people have the energy within them, when we are able to organize the funds and when we Poles are favored with a little more luck than at other times in our history,” he added. Completion of the 55,000seat stadium is scheduled for July. The total cost of the project amounts to z∏.1.915 billion. Alexander Hayes
Logistics
Goodman wins Gdaƒsk tender
The company will realize a €300 million logisistics project in the city Goodman Group has won a tender for the realization of Pomorskie Centrum L ogistyczne (P omeranian L ogistics Centre), a 500,000-sqm industrial and logistics complex which will be developed adjacent to the newly built Deepwater Container T erminal in Gdaƒsk. The project, valued at over €300 million, will be built in cooperation with InvestGDA and is expected to become the largest scheme of its kind in northern Poland. “We will commence development at the P omeranian Logistics Centre on a precommitted basis and have the ability to deliver completed facilities within a 10-month period. We are excited by the
opportunities this prime location offers, given the current undersupply of prime logistics and industrial facilities in
northern P oland,” B∏a˝ej Ciesielczak, country manager Goodman P oland, said at a press event last month.
He added that Goodman will target a diverse portfolio of local, national and international companies, active
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Copernicus started in S∏upsk
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The Pomeranian Logistics Centre project is valued at over €300 million
Offices to let
across a number of sectors including maritime transport, logistics, distribution, food and fast moving consumer goods. “We have the flexibility to develop tailor-made facilities such as warehouses, distribution centers, manufacturing facilities and office space that reflect our customers’ individual requirements,” he said. Goodman currently owns and manages over 100,000 sqm of facilities across Poland and has a land bank of over 30 ha for future development in the country. Ongoing projects of the company include a 10,800 sqm warehouse for Nissin in T oruƒ as well as a 14,500 sqm warehouse which will be part of the 150,000sqm Kraków Airport Logistics Centre development in Ma∏opolskie voivodship. Adam Zdrodowski
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LOKALE IMMOBILIA – REAL ESTATE
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Stock market
JANUARY 10-16, 2011
Retail
Inpro publishes prospectus Promenada changes hands
The IPO will provide cash for projects including this condo hotel in Miko∏ajki
The shopping center was traded for almost €170 million
rience and achievements. Thanks to the money from the offering we want to considerably accelerate the process of strengthening our position when it comes to the construction of upmarket and upper standard units in the most attractive locations of Tri-city,” Piotr Stefaniak, president of Inpro, said in a statement. He added that the investment in Domesta would allow Inpro to expand into the midmarket apartment segment and that the firm would continue to invest in land as well as increase its involvement in the commercial market. “We also envision potential expansion into other Polish cities, including W arsaw, Bydgoszcz, T oruƒ and P oznaƒ. But that will depend on housing demand in the particular region and on banks’ lending policies,” Mr Stefaniak said. Inpro has so far realized 25 residential projects spread throughout Gdaƒsk, Gdynia, Sopot and Jastarnia. It is currently involved in a further eight schemes comprising a total of 1,665 units, and plans to launch four more developments, with a total of 1,194 units, in the next few years.
Atrium European R eal Estate has acquired the Promenada shopping center in Warsaw from Carpathian PLC for €169.5 million. Cushman & W akefield and Jones Lang LaSalle advised, respectively, the buyer and the seller in the deal, which has been signed on a number of conditions expected to be fulfilled in Q1 2011. Following the transaction, Atrium, which also owns Warsaw’s R eduta and T argówek malls, now has 19 properties in Poland. “Promenada is a prominent, well-located asset situated in an affluent urban residential area in the capital city of Poland which houses strong tenants and provides good income. I am very excited by the acquisition and am looking forward to implementing a number of value enhancing asset management and development initiatives that we have already identified,” Rachel Lavine, CEO of A trium European R eal Estate, commented in a statement. “The acquisition of Promenada is a great success for
Adam Zdrodowski
% change 52-week (week) low
08OCTAVA
2.01
-1.47
ATLASEST
3.27
-0.30
BUDIMEX
102.50
DOMDEV ECHO
Atrium and one of the most significant investment transactions on the Polish retail market this year. It is very well established and one of the leading shopping center assets in the capital,” said Richard Petersen, managing partner at Cushman & Wakefield in Warsaw. Located on ul. Ostrobramska in Warsaw’s Praga Po∏ud-
nie district and open in 1996, Promenada offers 53,840 sqm of GLA (41,778 sqm of retail and 12,062 sqm of office space, respectively). The project is currently almost 94 percent leased out, with anchor tenants including a 4,030 sqm Alma supermarket and a 6,600 sqm Cinema City multi-screen movie theater. Adam Zdrodowski
52-week high
% change (year)
Total shares
Market value (z∏.mln)
1.85
2.55
-22.69
125,843,667
252.95
2.60
4.83
-7.63
50,322,014
164.55
0.49
72.00
106.10
35.31
25,530,098
2,616.84
41.49
-1.14
38.52
61.00
-9.11
24,560,222
1,019.00
4.95
0.20
3.71
5.40
14.06
420,000,000
2,079.00
ELBUDOWA
169.00
1.81
155.00
188.40
-1.69
4,747,608
802.35
ENERGOPN
14.17
3.43
13.52
17.10
5.04
23,827,044
337.63
ERBUD
56.50
-5.60
45.44
61.00
19.83
12,602,711
712.05
GANT
16.55
0.36
15.69
26.00
-25.68
20,499,953
339.27
GTC
24.35
-1.50
20.25
25.30
-6.31
219,372,990
5,341.73
HBPOLSKA
3.04
-2.25
2.98
4.06
-16.02
210,558,445
640.10
JWCONSTR
15.50
-3.13
11.06
18.69
30.03
54,073,280
838.14
LCCORP
1.48
0.68
1.37
1.73
-8.07
447,558,311
662.39
MARVIPOL
10.35
-2.27
10.21
22.31
-39.12
36,923,400
382.16
MOSTALWAR
59.30
-4.35
58.90
77.00
-1.17
20,000,000
1,186.00
MOSTALZAB
2.97
5.69
2.79
4.84
-31.72
149,130,538
442.92
NAFTA
23.17
-2.93
22.22
31.79
5.22
5,903,203
136.78
ORCOGROUP
27.74
2.74
19.00
33.50
0.14
14,053,866
389.85
PANOVA
30.89
1.28
23.14
37.69
34.30
8,000,000
247.12
PBG
208.00
-2.35
192.00
252.00
-0.81
14,295,000
2,973.36
PLAZACNTR
4.88
-2.40
4.44
6.80
-28.02
292,647,720
1,428.12
POLAQUA
17.66
4.07
14.94
22.50
-7.15
27,500,100
485.65
POLIMEXMS
4.01
-0.50
3.93
5.29
0.25
520,918,203
2,088.88
POLNORD
32.20
-2.22
30.10
44.00
-7.89
22,218,386
715.43
PROCHEM
25.75
-0.77
19.90
26.50
11.47
3,895,000
100.30
RONSON
1.47
-2.00
1.36
2.10
-16.95
272,360,000
400.37
TRAKCJA
4.05
-0.98
3.84
4.97
-1.22
160,105,480
648.43
ULMA
80.70
-1.71
70.00
87.95
-4.50
5,255,632
424.13
UNIBEP
10.00
0.50
5.47
10.30
79.21
33,927,184
339.27
WARIMPEX
9.85
-4.37
7.64
10.30
12.19
54,000,000
531.90
COURTESY OF NBS COMMUNICATIONS
Closing price on Jan 5
Warsaw’s Promenada offers 53,840 sqm of GLA
Ronson enters Szczecin market
Property-related stocks Security
COURTESY OF CUSHMAN & WAKEFIELD
Gdaƒsk-based developer Inpro has published its issue prospectus and will begin subscriptions for individual and institutional investors later this month. The company, which hopes to raise approximately z∏.100 million through its IPO, should debut on the W arsaw Stock Exchange’s main market at the start of February. Inpro has already earmarked the proceeds of its IPO for various purposes. Approximately z∏.30 million
will be spent on new developments, z∏.50 million on land purchases and z∏.13.3 million on the acquisition of a 51-percent stake in developer Domesta. The new projects will include Osiedle City Park and Osiedle Chmielna P ark in Gdaƒsk, as well as a condo hotel in Miko∏ajki. Inpro wants to use z∏.15 million, z∏.10 million and z∏.5 million, respectively, as downpayments for the investments. “We have a concrete development strategy which is based on our multi-year expe-
COURTESY OF INPRO
Its stock will start trading in February
The first phase of Ronson’s Szczecin scheme will deliver 82 apartments Developer Ronson Development has launched construction on its first residential project in Szczecin, Zachodniopomorskie voivodship. The investment, comprising the construction of a total of nine buildings, is located on ul. Duƒska and ul. Krasiƒskiego in the city’s Warszewo district. “Entering the Szczecin market is a very important element of R onson’s geographical expansion. According to our strategy, we want to increase the scope of our
operations, and thus sales, so that in 2011 the level of 500 apartments sold will be exceeded and in the next onetwo years the annual level of 800-1,000 units is reached,” said Andrzej Gutowski, the firm’s sales and marketing director. The first stage of the scheme, which is scheduled for completion in April 2012, will comprise two four-storey structures with a total of 82 units. The apartments will be sized from 36-98 sqm, with the bulk of the offer being
two- and three-room units. Larger two-level apartments will be located on the buildings’ upper floors. Warbud is signed on as general contractor. Ronson Development is currently selling units in nine projects across Poland. These are Verdis, Sakura, Imaginarium III and Nautica in W arsaw, Impressio in W roc∏aw, Galileo in P oznaƒ, Naturalis in ¸ omianki, Constans in Konstancin-Jeziorna and Gardenia in Józefos∏aw. Adam Zdrodowski
LOKALE IMMOBILIA – REAL ESTATE
JANUARY 10-16, 2011
Construction industry
Bumps on the road to recovery
Poland’s construction sector seems to have put the worst behind it, but optimism remains in short supply The construction industry seems to be rebounding after a difficult 2010 and is expected to see moderate growth this year. Market players have not been exuding optimism and confidence of late though, and some analysts claim that a return to pre-crisis results is unlikely to happen any time soon. According to a recent report by CEEC R esearch, KPMG and Norstat, the construction industry could grow by 3.2 percent this year, which would mark considerable improvement on 2010 figures. But the research, which was carried out in September among companies active in the construction market, reflects dampened optimism among the sector’s firms. While a similar poll conducted in March had revealed
expectations of 4.7 percent growth in 2010, by September the forecast was already down to a measly 0.8 percent. Companies were admittedly reporting a 10 percent increase in the use of their production capacities, but many were nonetheless concerned about growing difficulties in securing new orders. Almost 37 percent of the construction companies polled in September admitted they had fewer contracts than in the the same period of the previous year, while 35 percent said the number remained at the same level. In the case of 28 percent, the number of contracts had increased y/y. “The construction market in Poland was the only one in the Visegrad Group that did not see losses in 2009. The sector started to see serious difficulties as late as at the beginning of 2010, when, due to various reasons, including a heavy winter, its results were more than 10 percent worse than in 2009,” said Steven Baxted, head of the construction and real estate advisory
Rebuilding, but slowly Annual growth in the Polish construction industry, 2006-2011*
30
20
10
% 2006
2007
2008
2009
2010
2011
*forecasts for 2010 and 2011 Source: Central Statistical Office, CEEC Research, KPMG and Norstat
SHUTTERSTOCK
Adam Zdrodowski
The sun has set on the days of dynamic gr owth, some say team at KPMG in Poland. He added that the losses had been made up for by the end of October, but the sector’s results could hardly be described as impressive. The summer season, although more active than the difficult beginning of the year, had seen many construction companies disappointed. “In the near future there are no prospects for a return to the high growth level seen before the crisis,” Mr Baxted said. Meanwhile, data from Coface Poland on bankruptcies in P oland in the Q1-Q3 2010 period illustrates the pains that the construction industry went through last year. The sector stood out from all the others under study with its 35 percent y/y increase in the number of companies going bust.
Gathering pace Some of the major problems which caused the 2010 slowdown, however, seem to have been transient. If residential developers considerably cut down on investment in 2009 and thus contributed to the construction sector’s woes, Mr Baxted noted, last year their activity was on the rise again, which provided new contracts to the whole industry. Bart∏omiej Sosna, senior construction analyst at PMR Publications, was also optimistic, noting that the last months of 2010 showed rising activity in the construction market. He pointed out that housing is likely to see growth in 2011 and that a marked increase in office and public building construction could already be seen last year. “After months of design
and land preparation work, construction will finally launch on many large road projects. Investment in [sewage] schemes, co-financed with EU money, is also developing very dynamically,” Mr Sosna said. He added that as far as the energy sector is concerned, the majority of large investments are still in the preparatory phase. All of this led PMR last autumn to forecast up to 10 percent growth for the Polish construction sector in 2011, granted favorable weather conditions. However, following recent cuts in road investments, the number of projects underway may slightly decrease in the second half of the year, so a growth rate of approximately eight percent seems more likely, Mr Sosna Adam Zdrodowski stated.
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17
Logan plans Wroc∏aw project PM Group and RKD Architects will design Logan Investments’ office building in Wroc∏aw. The investor, a subsidiary of Irish developer Crownway Investments, owns a 1,320-sqm plot on ul. Pi∏sudskiego near the city’s main railway station. The site will host a five-storey office facility totaling some 6,700 sqm of space. A preliminary vision of the building should be presented within the next few weeks and it is expected to be modeled on the architecture typical of Wroc∏aw in the 1920s and 1930s. Design work should be finished by mid-2011, with the ensuing construction phase taking from 12-16 months.
Jasna 26 agent chosen Developer Mermaid Properties has appointed CB Richard Ellis as the exclusive leasing agent for its Jasna 26 office project. The building is a five-storey tenement house dating back to the 1940s. It will be converted into a class-A office facility with over 4,300 sqm of space. Jasna 26 is scheduled for completion in H1 2012. It will join Mermaid Properties’ growing office portfolio, which also includes Libra Business Centre and Miodowa 10 in Warsaw and the Cross Point development in ¸ódê. ●
LOKALE IMMOBILIA – REAL ESTATE
Green Towers’ first tenant Skanska Property Poland and Ernst & Young have signed a lease agreement for 1,800 sqm of office space in the Green Towers office project in Wroc∏aw. The latter company has thus become the first tenant in the LEED pre-certified property. Green Towers will comprise two 10-storey buildings offering a total of approximately 23,000 sqm of GLA. Phase one of the project is scheduled for completion in March 2012.
Intel inside @park AIP 3 Investment, a subsidiary of Allcon Investment, has signed a lease agreement with Intel Technology Poland for office space on two floors of the ALLCON@park 3 building in Gdaƒsk. Intel is the exclusive tenant in the other two facilities in the complex, which were built for the company in 1998 and 2005. The third phase of the ALLCON@park project is expected to be turned over for use this month. ●
Neinver launches Katowice project
Construction on the Galeria Katowicka shopping mall will start soon Developer Neinver and Polish State R ailways have commenced the main construction stage of a major infrastructural and commercial project in Katowice, Silesia voivodship. Demolition work is now underway on the city’s railway station building and a nearby overpass. Once this is finished, Strabag, the general contractor of the scheme, is expected to enter the construction site to work on a new railway station, the Galeria Katowicka shopping mall, an office building and an underground bus depot. “The investment in Katowice is an exceptionally important and prestigious project for us. Katowice is among the
fastest developing cities in Poland. W e are positive that the integrated transportation and business center which will emerge after the reconstruction will change the city itself and will have a beneficial impact on the local economy,” Barbara T opolska, managing director at Neinver Polska, said in a statement. The investment, whose total value is estimated at €240 million, will deliver over 53,000 sqm of retail and 24,000 sqm of office space, respectively. The project has been designed by the SUD Architectes studio and its retail space is being commercialized by Cushman & Wakefield. Adam Zdrodowski
JANUARY 10-16, 2011
Government to pay for World War II Museum The government announced last week that it would set aside almost z∏.360 million from the budget to pay for the new World War II Museum in Gdaƒsk. Professor P awe∏ Machcewicz, director of the future museum, told the Polish Press Agency that he estimated the cost of construction alone to come to around z∏.230 million. Construction work is scheduled to start on the museum in May 2012. The site, a 1.7-ha plot located on ul. Wa∏owa in an historic part of Gdaƒsk, was donated by the city authorities. The museum’s design was awarded to Studio Architektoniczne Kwadrat on September 1, 2010, and negotiations with the firm should be concluded by the end of this month. Belgian firm Tempora will design the interiors for the exhibitions. Once finished, the museum will provide approximately 23,000 sqm of floor area and the main exhibition will occupy 4,000 sqm. In addition to exhibition space, it will have a library and reading rooms, a research section and historical archives. “Our neighbors devote
COURTESY OF THE MUSEUM OF THE SECOND WORLD WAR
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COURTESY OF CISZEWSKI FINANCIAL COMMUNICATIONS
18
Construction on the museum is set to s tart in May 2012
huge resources to promoting their vision of 20th century history,” professor Machcewicz said. “Poland also has to take part in the European discussion of 20 th century history, including World War II. This is a duty for a large European country, and narrative museums play a key role in such discussions. The Holocaust Museum in W ashington is
such an example. It is difficult to talk about the Holocaust without reference to it.” The museum is due to open officially on September 1, 2014, to mark the 75th anniversary of the outbreak of World War II. More information about the museum can be found at www.muzeum1939.pl Alexander Hayes
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MARKETS
JANUARY 10-16, 2011
www.wbj.pl
world stock indices DJIA
NASDAQ
11,690.34 (Jan 5 close) 0.91% (for the week)
Stocks report
S&P500
2,701.58 (Jan 5 close)
FTSE100
1,276.60 (Jan 5 close)
1.30% (for the week)
DAX
6,044.50 (Jan 5 close)
1.34% (for the week)
0.80% (for the week)
WIG20 falls on “bank tax”
NIKKEI225 6,933.25 (Jan 5 close)
10,380.76 (Jan 5 close)
-0.89% (for the week)
0.35% (for the week)
CHANGE: 0.91%
CHANGE: 1.30%
CHANGE: 1.34%
CHANGE: 0.80%
CHANGE: -0.89%
CHANGE: 0.35%
(year to Jan 5)
(year to Jan 5)
(year to Jan 5)
(year to Jan 5)
(year to Jan 5)
(year to Jan 5)
52-week high: 11,795.80
52-week high: 2,712.35
52-week high: 1,278.17
52-week high: 6,090.50
52-week high: 7,087.84
52-week high: 11,408.20
52-week low: 9,596.04
52-week low: 2,061.14
52-week low: 1,010.91
52-week low: 4,790.00
52-week low: 5,433.02
52-week low: 8,807.41
Tomasz Jerzyk, technical analyst DM BZ WBK SA Polish stocks proved to be a mixed bag last week, with the blue-chip WIG20 index losing 2.2 percent on the week, and the medium stocks benchmark, the mWIG40, gaining 0.8 percent. Financial stocks led the WIG20 lower, probably because of Finance Minister Jacek Rostowski’s announcement that P oland would introduce a special tax on banks. It is hard to determine how the tax will affect banks’ balance sheets, but investors chose to sell on the news. PKO BP suffered the most and its shares plunged by more than seven percent. BRE Bank and P ekao also suffered. Copper prices finally contracted, and in doing so negatively affected KGHM’s share price. The miner lost more than six percent on the
Major indices WIG
47,075.74 (January 5 closure)
WIG20
2,705.35 (January 5 closure)
Change for the week: -1.74%
52-week high: 47,911.46
Change for the week: -2.54%
52-week high: 2,787.09
Change year to January 5: -1.74%
52-week low: 37,322.52
Change year to January 5: -2.54%
52-week low: 2,173.25
48,500
2,800
48,000
2,750
47,500
2,700
47,000
05.01
04.01
03.01
31.12
30.12
29.12
28.12
27.12
23.12
22.12
21.12
20.12
17.11
16.12
15.12
14.12
13.12
10.12
09.12
05.01
04.01
03.01
31.12
30.12
29.12
28.12
27.12
23.12
22.12
21.12
20.12
17.11
16.12
15.12
14.12
13.12
10.12
09.12
08.12
2,600
08.12
2,650
46,500 46,000
Top 5 POLREST TECHMEX MEWA BOMI CIECH
Closing 0.46 0.46 0.56 9.29 28.35
% change (week) 52-week high 84.00 1.63 53.33 2.30 19.15 0.82 17.59 15.18 16.62 36.95
52-week low 0.24 0.27 0.01 6.10 19.50
Top 5 CEZ ASSECOPOL KGHM PGNIG BZWBK
Closing 127.80 55.45 166.50 3.58 213.00
% change (week) 4.58 2.12 0.30 0.28 -0.47
52-week high 148.80 60.65 173.00 3.91 220.90
52-week low 118.70 49.24 86.50 3.16 168.10
Bottom 5 CELTIC FON EKOEXPORT BEST ARCUS
Closing 23.98 0.55 6.85 9.10 7.13
% change (week) -40.05 -24.66 -18.55 -17.12 -14.61
52-week low 72.00 0.40 1.96 9.10 5.84
Bottom 5 PKNORLEN PKOBP BRE PEKAO PGE
Closing 45.19 41.70 293.00 178.00 22.69
% change (week) -6.44 -4.99 -4.56 -4.56 -3.03
52-week high 49.00 46.81 312.50 196.50 24.04
52-week low 31.05 35.06 220.10 148.30 19.70
52-week high 22.68 0.73 9.03 30.00 9.46
2,817.56 (January 5 closure)
sWIG80
A week of emotion
12,234.48 (January 5 closure)
Change for the week: -0.37%
52-week high: 2,828.02
Change for the week: 0.43%
52-week high: 12,627.87
Change year to January 5: -0.37%
52-week low: 2,213.51
Change year to January 5: 0.43%
52-week low: 10,980.45
Kamil Cisowski, X-Trade Brokers Dom Maklerski SA The first week of 2011 fully satisfied those investors counting on increased volatility and dramatic moves on currency markets. The collapse of the euro, fueled by growing concerns about Spain and Portugal, overshadowed almost all other occurrences. The future of the European currency looks worse each week. The only similar event last week was seen on the gold market, where the commodity saw its biggest fall in months. The dollar, meanwhile, seemed to be the biggest winner of the week, as it appreciated against almost all other currencies. The Polish currency also evoked lots of emotion, primarily due to the verbalintervention of NBP president Marek Belka. His mention of the possibility of higher interest rates triggered an incredi-
12,500
2,900
12,300
2,850
12,100 2,800 11,900 2,750
NewConnect
62.66 (January 5 closure)
WIG-Banki
05.01
04.01
03.01
31.12
30.12
29.12
28.12
27.12
23.12
22.12
21.12
20.12
17.11
16.12
15.12
14.12
13.12
10.12
09.12
08.12
11,500
05.01
04.01
03.01
31.12
30.12
29.12
28.12
27.12
23.12
22.12
21.12
20.12
17.11
16.12
15.12
14.12
13.12
10.12
09.12
11,700
08.12
2,700
6,787.23 (January 5 closure)
Change for the week: 1.59%
52-week high: 64.09
Change for the week: -3.77%
52-week high: 7,262.73
Change year to January 5: 1.59%
52-week low: 49.70
Change year to January 5: -3.77%
52-week low: 5,440.90
65
7,200
64
7,100 7,000
63
6,900 62
SOURCE: WSE
05.01
04.01
03.01
31.12
30.12
29.12
28.12
27.12
23.12
22.12
21.12
20.12
17.11
16.12
15.12
14.12
13.12
10.12
09.12
08.12
6,700
05.01
04.01
03.01
31.12
30.12
29.12
28.12
27.12
23.12
22.12
21.12
20.12
17.11
16.12
15.12
14.12
13.12
10.12
09.12
6,800 08.12
61
week. CEZ was the best performing WIG20 stock, rising 10 percent. Most other sectors saw gains and chemicals stocks were particularly strong. The sector benchmark, the WIGChemia, soared by nearly 10 percent, with P olice and Ciech the top picks. Investors have probably been accumulating those shares as chemicals rose by more than 60 percent in 2010. FMCG market player Eurocash was also in the news. It bought the distribution arm of rival Emperia last week. The latter’s CEO later indicated that his firm might be interested in takeovers this year, with Bomi mentioned as a possible target. Eurocash and Bomi rose by 14 percent, but Emperia lost more than seven percent. ●
Currency report
Other indices mWIG40
19
bly strong move last Tuesday. But it is hard to predict if such actions will be enough given that the Polish currency faces challenges from the serious problems brewing in other European countries. This week looks to have strong potential for the dollar, Swiss franc and Japanese yen. It also seems that global stock markets may decline further, bringing down European currencies. Last week’s falls were softened by positive information from the US about unemployment. However, payrolls published on Friday suggested that recent ADP figures on non-farm employment change were a one-off surprise rather than a sign of more permanent growth. As a result, this Monday will not be as optimistic as the last one. ●
currency rates 3.5704 07.01
07.01
05.01
04.01
03.01
SOURCE: NBP
3.5843
3.5928
3.6590 03.01
05.01
3.6440 31.12
04.01
3.6778 30.12
0.0962
0.0955
0.0964
0.0968
0.0970 31.12
3.5
30.12
07.01
05.01
04.01
03.01
31.12
PLN-100JPY
4.0
0.08
30.12
07.01
05.01
04.01
03.01
31.12
0.0982
3.0948
3.0985
3.1235
3.1790
3.1639
3.1932
4.6082
4.5945
4.5975
4.6075
4.5938
4.6484
PLN-RUB
0.10
3.0
30.12
07.01
05.01
04.01
03.01
31.12
4
30.12
PLN-CHF
3.5
2.9818
2.9476
2.9415
2.9822
2.9979
3.8730 07.01
05.01
04.01
03.01
31.12
PLN-GBP
5
2.9
30.12
3.8
3.0
2.9641
PLN-USD
3.1
3.9095
3.9433
3.9622
3.9704
4.0
3.9603
PLN-EUR
4.2
20
THE LIST
www.wbj.pl
Book of Lists
JANUARY 10-16, 2011
Book of Lists is a comprehensive, detailed and constantly updated guide to more than 2,000 companies operating in the Polish market. Key enterprises are divided by sector into more than 65 ranking lists that include information such as the names of top managers , major clients, activities, the number of employees, completed projects and full contact details . This week’s edition examines audit and accounting companies . For more information about Book of Lists contact Joanna Raszka, tel. 22 639–8567 ext. 119; jraszka@valkea.com
Audit and accounting companies Company name Address Tel./Fax E-mail Web page
Fee split Revenue from auditing and accounting Total revenue Tax Accounting / consultancy / Audit / (z∏. mln) (z∏. mln) Audit Accounting Other 1st half of 2010 / 2009 / 2008 / 2007
Specialty Tax consultancy M&A
Rank
Ranked by revenue from auditing and accounting in 2009
Other
Selected clients
Accountants Total employees / International ly licensed Full-time auditors / employees / PolandYear founded in licensed Poland auditors
Top local executive / Title
Ernst & Young Rondo ONZ 1, 00-124 Warsaw 1 22 557-7000/22 557-7001 Ernst.Young@pl.ey.com, www.ey.com/pl
WND 200.0(1) 211.0(1) 182.0(1)
WND 424.0(1) 444.0(1) 423.0(1)
48%
23% 29%
✓ ✓
✓ ✓
Business consulting; financial advisory; IT Asseco Poland; Getin Holding; Grupa Lotos; consulting; effectiveness management; ING Bank Âlàski; KGHM Polska Miedê; financial risk management; business risk GTC; Mostostal Warszawa; Multimedia Polska; management; abuse risk management; Netia; Pern; Poczta Polska; Polimex IT risk management; European Mostostal; Tauron Polska Energia consultancy; transaction advisory
1,197 1,078 1990
107 24 80
PricewaterhouseCoopers Al. Armii Ludowej 14, 00-638 Warsaw 2 22 523-4000/22 523-4040 pwcpoland@pl.pwc.com, www.pwc.com/pl
WND 194.9(1) 188.9(1) 165.0(1)
WND 389.1((1) 399.7(1) 388.8(1)
7% 43.1%
29.3% 20.6%
✓ ✓
✓ ✓
Public subscription offers advisory; tax advisory; financial; economic and strategic for companies and public sector objects; transactional; human capital management; risk management advisory; advisory for investors; other development
BRE Bank; Grupa ˚ywiec; PKO BP; ITI/TVN; Polska Telefonia Cyfrowa; Real; Grupa Shell Polska; KGHM; Kompania Piwowarska; Samsung Electronics; Volvo Polska; Electrolux Poland; Toyota Motor Manufacturing Poland; RWE Polska
1,376 1,376 1990
75 35 76
Olga Grygier - Siddons
95.2 176.8 176.6(1) 159.0(1)
200.3 455.0 440.3(1) 375.0(1)
2% 38%
21% 39%
✓ ✓
✓ ✓
Law; business; financial; accounting advisory services; risk management
PKN Orlen; PeKaO; Media Saturn; Bank BPH; BZ WBK; PGE Polska Grupa Energetyczna; GE Money Bank; Bank Millennium; Polsat; Skanska; Cemex; Bank Handlowy; Carrefour Polska
1,208 1,130 1990
23 89 98
Andrzej Âcis∏owski
66.1 127.5 125.9 100.6
190.4 340.3 371.8 319.6
37%
29% 34%
✓ -
✓ ✓
Consulting; financial advisory; risk management
Telekomunikacja Polska; PZU; ArcelorMittal; Fiat; PGE; PGNiG; Enea; Ciech; WPP; Procter & Gamble
1,064 951 1990
39 58
Marek Metrycki
BDO Sp.z o.o. ul. Post´pu 12, 02-676 Warsaw 5 22 543-1600/22 543-1601 office@bdo.pl, www.bdo.pl
26.4 43.0 40.1 33.7
31.0 51.6 50.2 45.0
30% 54%
6% 10%
✓ ✓
✓ ✓
Introducing co-partnerships into public Action; Ambra; ARP; Aviva; Ceramika Nowa rotation IPO; business advisory; financial Gala; Comarch; Famur; Indykpol; Jupiter TFI; advisory; finance acquisition; special JW Construction; KDPW; Kofola; Kronospan; audits; advice for trial proceedings; IT Laboratorium Kosmetyczne Dr. Irena Eris; advisory; structural funds acquisition; IT PCC; Petroinvest; Polnord; Trakcja Polska; audit; trainings Uniwersytet Jagielloƒski; Yawal
324 313 1991
76 6 34
André Helin
Rödl & Partner (Roedl Audit Sp. z o.o.; Roedl Outsourcing Sp. z o.o.) 6 ul. Prosta 51, 00-838 Warsaw 22 696-2800/22 696-2801 warszawa@roedl.pl, www.roedl.pl
20.3 37.9 35.8 32.1
32.7 62.2 42.5 37.0
35.6% 25.4%
15.2% 23.8%
✓ ✓
✓ ✓
Law advisory; human resource consulting; IT consulting
WND
372 262 1992
145 2 20
3
KPMG ul. Ch∏odna 51, 00-867 Warsaw 22 528-1100/22 528-1009 kpmg@kpmg.pl, www.kpmg.pl
4
Deloitte Audyt Sp. z o.o. Al. Jana Paw∏a II 19, 00-854 Warsaw 22 511-0811/22 511-0813 dpoland@deloittece.com, www.deloitte.com/pl
Duleep Aluwihare
Managing Partner of Ernst & Young in Poland
CEO/President
Senior Partner
President
President
Liliane Preußer; Jens Jungmann; Therese Baginski Partner; Managing Partner, Expert Auditor; Partner, Expert Auditor
7
Mazars w Polsce (2) ul. Pi´kna 18, 00-549 Warsaw 22 255-5200/22 255-5299 main@mazars.pl, www.mazars.pl
WND 34.0(3) 36.0(3) 30.0(3)
WND 41.0(3) 40.0(3) 36.0(3)
31% 52%
17% -
✓ ✓
✓ ✓
-
Air Liquide; Alior Bank; AXA; Bonduelle; Camaieu; Citroen; Danone; DM IDM; Farmacol; Fortis; G+J; Gras Savoye; Hochland; Karmar; Konsorcjum Stali; Leclerc; Orze∏ Bia∏y; Peugeot; Publicis; Vistula
160 145 1992
50 4 12
Michel Kiviatkowski
8
Grant Thornton Fràckowiak Sp. z o.o. Pl. Wiosny Ludów 2, 61-831 Poznaƒ 61 850-9200/61 850-9201 info@gtfr.pl, www.gtfr.pl
22.5 25.7(1) 23.8(1) 18.7(1)
32.4 35.7(1) 31.9(1) 23.7(1)
26.2% 43.2%
21.9% 8.7%
✓ ✓
✓ ✓
Economic advisory
Alchemia; Amica Wronki; Europejski Fundusz Hipoteczny; Hydrobudowa Polska; Koelner; Komputronik; LPP; Makrum; PBG; QXL Poland; PayU; Ceneo; otoMoto; Polkomtel; Monini; RWE Dea Polska
221 221 1993
19 34
Cecylia Pol
Baker Tilly w Polsce (4) ul. Królewska 27, 00-060 Warsaw 9 22 653-3550/22 827-6915 contact@bakertillypoland.eu; www.bakertillypoland.eu;
9.9 19.6 18.1 20.3
23.3 39.9 37.4 35.9
40% 8%
5% 47%
✓ ✓
✓ ✓
Services for public limited companies; initial public offerings; due diligence; management consulting; economic and legal analysis; tax advisory; payroll service outsorcing; full HR and recruitment services
PL2012; Trilux; World Courier; Samsonite; M & M Aerospace Hardware; Philips & Lite -On Digital Solutions Corp; Lilium; North Coast; MCI Management; Grupa Caelum Development; CHI Polska; Euromark; NFI Midas
290 280 1990
99 2 8
Steven Foster; Joe Smoczyƒski
Grupa Kapita∏owa PKF Consult ul. Elblàska 15/17, 10 01-747 Warsaw 22 560-7650/22 560-7663 pkfconsult@pkfconsult.pl, www.pkfconsult.pl
WND 15.3 12.9 10.5
WND 19.7 17.7 15.6
18% 59.5%
5% 17.5%
✓ ✓
✓ ✓
Ecco Shoes Polska; Corporate Finance Polska; Financial advisory; issuing IPO Omega Resource Group; Nutriad - AD prospectus; debuts on New Connect and International NV; N.V. Besix; JDSU Polska; GK Catalyst; accounting; training activity; Bomi; GK Kopex; Euroafrica; GK Jutrzenka; structural funds; due diligence; valuations PKP Intercity; BBI Capital NFI; GK ZM Ropczyce
183 149 1993
10 23
Ewa Jakubczyk-Ca∏y
5.9 8.8 8.9 6.9
10.6 16.7 18.9 12.9
26% 26%
44% 4%
✓ ✓
✓ ✓
Corporate finance; HR advisory; European consulting
ERBUD; Strabag; Deka Immobilien; ENEA; Raiffeisen; Feroco; Winkelmann
99 72 2005
26 1 3
Krzysztof Horodko
4.0 7.6 5.6 2.7
4.0 7.6 5.6 2.7
100% -
-
✓
-
Payroll services
RGA; Mahia (QuickSilver); ADP International Services; Restaura; Monster International; Ingersoll - Rand Technical Service; Crown Relocations; State Street Bank; Logista; Brunswick Marine Poland; Riverside Europe; Arteria; RGA Branch Poland; B&B Hotels
80 70 1994
64 -
Rafa∏ Strzelecki
2.5 7.3 5.4 5.0
3.8 7.3 6.9 5.4
100% -
-
✓ ✓
✓ ✓
HR outsourcing; training; IT outsourcing; financial advisory
BPH TFI; Lexmark Polska; Union Investment TFI; Grifols Polska; Grupa Polnord; Miejskie Przedsi´biorstwo Taksówkowe; Przedsi´biorstwo Miernictwa Górniczego; Averion
55 33 2002
17 7
Krzysztof ¸ogiewa; Karol Âwietlicki vel W´gorek
System Rewident Sp. z o.o. ul. Rakowiecka 30A, 02-528 Warsaw 14 22 380-0380/22 380-0381 info@system-rewident.com.pl www.system-rewident.com.pl
4.0 6.7 6.5 6.3
4.2 7.1 6.7 6.5
65.1% 27.4%
5.3% 2.2%
✓ ✓
✓ ✓
HR and payroll; business consulting; stocktaking; trainings
SSAB Swedish Steel; CB Richard Ellis; Heitman; Soyter; Coppenrath & Wiese; B3 System; Bawaria Motors; Deloitte; SAP Polska; SGGW; Irestal Polska; Altmann; DIY Poland; Kayla Investments; Szczecin Shipyard; UBB Polska
68 65 1995
40 11
Jadwiga Szabat
Morison Finansista Audit Sp. z o.o. ul. G∏ówna 6, 61-005 Poznaƒ 15 61 654-4102/61 875-2950 biuro@morison.pl, www.morison.pl
2.9 5.6 5.8 4.0
3.4 7.1 7.0 4.3
WND WND
WND WND
✓ ✓
✓ ✓
Corporate finance; controlling; investing advisory
Mi´dzynarodowe Targi Poznaƒskie; Agencja NieruchomoÊci Rolnych; Kopalnia W´gla Brunatnego “Konin” w Kleczewie; Oponeo PL; Wuprinz; Wittchen; Chata Polska; Piecobiogaz; Energetyka Cieplna Opolszczyzny; Polskie Radio
90 62 1989
29 32
Lidia Skud∏awska
AUXILIUM SA Al. Pokoju 84, 31-564 Kraków 16 12 425-8053/12 425-9147 auxilium@auxilium.com.pl, www.auxilium.com.pl
4.6 5.4 4.1 2.5
4.7 5.8 4.4 2.5
36.6% 55.7%
6.1% 1.7%
✓ ✓
✓ ✓
Stock market advisory
Doradcy 24; Marsoft; Maximus; Inbook; Liberty Group; FON; Teleforceone; Intersport Polska; Zak∏ad Automatyki Polna; Morska Stocznia Remontowa; Fabryka Urzàdzeƒ Mechanicznych i Spr´˝yn FUMiS-Bumar; Âlàski Uniwersytet Medyczny Katowice
162 28 1995
22 134
Zofia Podhorodecka
Moore Stephens Central Audit Sp. z o.o. ul. Sienna 82, 00-815 Warsaw 22 652-2183/22 323-6550 biuro@centralaudit.pl, www.centralaudit.pl
2.9 5.3(3) 4.7(3) 2.7(3)
3.1 5.8(3) 4.8(3) 2.8(3)
37% 52%
9% 2%
✓ ✓
✓ ✓
-
WND
49 44 2005
24 1 3
Janusz Bia∏ecki
Baltic Accountants and Consultants Kurt Iversen 18 Al. Wojska Polskiego 11, 01-524 Warsaw 22 869-0666/22 869-0660 contact.us@baac.com.pl, www.baac.com.pl
2.6 4.8 4.3 4.1
2.9 5.3 4.9 4.8
68% 22%
5% 5%
✓ ✓
✓ -
WND
WND
31 31 1990
17 1 3
Kurt Iversen
CTN Polska Sp. z o.o. ul. Koszykowa 54, 00-675 Warsaw 22 630-8444/22 630-8441 office@ctn-polska.pl, www.ctn-polska.pl
2.5 4.5 3.6 2.3
2.5 4.5 3.6 2.3
100% -
-
✓ ✓
✓ ✓
WND
WND
30 30 2001
15 1
Micha∏ Deskur
11
TPA Horwath (5) ul. ˚ydowska 1, 61-761 Poznaƒ 61 851-3860/61 851-3862 office@tpa-horwath.pl, www.tpa-horwath.pl
Extor Sp. z o.o. ul. Wyrzyska 9A, 02-455 Warsaw 12 22 266-0550/22 266-5088 info@extor.pl, www.extor.pl
13
17
19
FK Partner Sp. z o.o. Al. Jana Paw∏a II 29, 00-867 Warsaw 22 653-7200/22 653-7210 warszawa@fk-partner.pl, www.fk-partner.pl
Managing Partner
President
Presidents
President
President
President
President; Board Member
President
President
President
President
Director
President
THE LIST
JANUARY 10-16, 2011
Fee split Revenue from auditing and accounting Total revenue Tax Accounting / consultancy (z∏. mln) (z∏. mln) / Audit / Audit Accounting Other 1st half of 2010 / 2009 / 2008 / 2007
Specialty
Accountants Total employees / International ly licensed Full-time auditors / employees / PolandYear founded in licensed Poland auditors
21
Other
✓ ✓
Accounting advisory; due diligence
Jupiter NFI; Apator; PRI Pol - Aqua; Pekao Fundusz Kapita∏owy; Roto Frank; Uniwheels Production; ATS
27 24 1992
18 5
Ewa Orkwiszewska
Financial and legal expertise
Fundacja ‘Fundusz Wspó∏pracy’; Cushman & Wakefield; Prevoir Vie Grupe Prevoir; Stora Enso Polska; Stora Enso Wood Supply; Asusu Polska; Politechnika Warszawska; Merrler Toledo; Atlantic; Narodowe Centrum Badaƒ i Rozwoju; Polski Komitet na Rzecz Dzieci UNICEF; Athletic International
55 55 1989
35 10
Wojciech Sadren
Evaluation; polls; acquiring EU funds for Warsaw City Hall; PARP; MRR; Poczta Polska; project realization; valuation expertise Kombinat Koksotechniczny Zabrze; FM Polska
65 65 2004
8 1 6
Rados∏aw Gumu∏ka
Ghelmaco Poland; Epic Games Poland; IMS Polska; Outbox; People Can Fly
23 20 2004
15 -
Agnieszka Szwedowicz
Other economic and financial case studies
Kolporter in Kielce; ZSM ‘Polmo’; Bydgoskie Zak∏ady Elektromechaniczne ‘Belma’; Pojazdy Szynowe ‘Pesa Bydgoszcz’; Optima Radix Vita Plus Tadano; Zak∏ady Chemiczne “NitroChem” in Bydgoszcz; Zak∏ady Naprawcze Taboru Kolejowego “Miƒsk Mazowiecki”
52 23 1991
11 33
Andrzej Mucha
✓
WND
Mill-Yon; Kelly Taylor Polska; Schmalz; Burkert Contromatic; Ecoval Dairy Trade
14 12 1992
9 3
Lech Zieliƒski
✓ ✓
✓ ✓
WND
Technical University in ¸ódê; ZRE Katowice; University of Wroc∏aw
31 4 1992
28 28
Adam Karcher
3%
✓ ✓
✓ -
WND
Autocentrum; Centrum Produkcyjne Pneumatyki Prema; Ekoplon; Energy Management and Conservation Agency; Gliwicka Agencja Turystyczna; Huta Cynku Miasteczko Âlàskie; Tabex; Chemar; DEK; Drogowiec - PL; HSW; Ryfarm
45 5 1992
40
Leokadia Zagórska
100% -
-
✓
-
16 18 2005
14 -
Monika Zaluska
1.2 1.6 1.4 1.3
56% 35%
9%
✓ ✓
✓ ✓
Accounting advisory
WND
25 10 1993
11 7
Gertruda Krystyna Âwiderska
0.5 0.8 0.8 0.6
0.5 0.8 0.8 0.6
99% -
1%
✓
✓
WND
Fleishman Hillard; Apli Polska; We R. Supply Europe
9 8 2004
3 -
¸ukasz Kaliƒski
TBR Kowalczyk Sp. J. ul. Indiri Gandhi 11, 02-776 Warsaw 22 647-2002/22 644-4346 tbr@tbr.pl, www.tbr.pl
0.5 0.8 0.7 0.5
0.5 0.8 0.7 0.5
100% -
-
✓
-
WND
Magnolia Polska; AWT International Polska; Papilart
11 8 1997
4 -
Arkadiusz Kowalczyk
32
THOMAS Sp. z o.o. ul. P∏ocka 13, 01-231 Warsaw 22 862-8800/22 862-8810 thomas@thomas.pl, www.thomas.pl
0.2 0.6 1.2 1.0
0.4 0.9 1.3 1.0
WND WND
WND WND
✓
✓ ✓
-
Advantech Poland; BHKK; Bose; Datecs Polska; Signalbau Huber
8 7 1993
6 -
Tomasz Wikliƒski President
NR
Calan ul. Ch∏odna 29, 00-867 Warsaw 22 455-2555/22 455-2666 info@calan.pl, www.calan.pl
WND WND WND WND
WND WND WND WND
WND WND
WND WND
✓
✓ ✓
WND
WND
121 112 1997
WND 1 6
NR
Exco A2A Polska Sp. z o.o. Al. Niepodleg∏oÊci 106, 02-585 Warsaw 22 847-6117; 22 847-9193 war@exco.pl, www.exco.pl
WND WND WND WND
WND WND WND WND
90% -
10%
✓
✓ ✓
Contracting audit; HR and payroll advisory; projects management; due diligence; controlling; VAT tax collection
WND
50 45 1999
WND WND WND
NR
Process Solutions Sp. z o.o. Al. Jerozolimskie 81, 02-001 Warsaw 22 695-0295/22 695-0299 info-pl@ps-bpo.com, www.ps-bpo.com
WND WND WND WND
WND WND WND WND
WND WND
WND WND
✓
-
HR and payroll; tax compliance; implementation of ERP systems; business planning and modeling; start-up support; corporate administration
British Telecom; WizzAir; Worldmark; Interserve; Caterpillar; Garmin; Gefco; Telecom Italia; Toro; Turbomach
20 20 2007
16 1
Tomasz Tàkiel
NR
Staniszewski & Richter Sp. z o.o. ul. Lwowska 10/21, 00-658 Warsaw 22 622-4198/22 621-2719 sr@auditors.pl, www.auditors.pl
WND WND WND WND
WND WND WND WND
26% 46%
6% 23%
✓ ✓
✓ ✓
-
First Property Group; Generik; Trox; Green Bear Corporation; Ceraco Group
23 23 1993
15 3 2
Alexander Staniszewski
TMF Poland Sp. z o.o. Pl. Pi∏sudskiego 1, 00-078 Warsaw NR 22 456-4500/22 456-4599 poland@tmf-group.com, www.tmf-group.com
WND WND WND WND
WND WND WND WND
WND -
-
✓
-
Human resource and payroll; domiciliary and management services; corporate secretarial services (including shelf companies); banking services; international VAT registration; VAT recovery for non-Polish businesses; fiscal representation for non-EU businesses
WND
111 111 1996
62 -
Armin R. Kirchner, Miko∏aj Pluciƒski
Trinity Corporate Services Sp. z o.o. Al. Jerozolimskie 56C, 00-803 Warsaw 22 379-9440/22 379-9441 trinity@trinitycs.com, www.trinitycs.com
WND WND WND WND
WND WND WND WND
70% -
30%
✓
-
HR services; management reporting; market entry; corporation secretariat; domicile address; shelf companies & SPVs; copartnerships registration; eliminations; special projects
WND
158 154 2004
WND 2 -
Thomas Ravensdale
Rank
Tax consultancy M&A
Company name Address Tel./Fax E-mail Web page
www.wbj.pl
2.4 4.4(6) 4.2(6) 3.6(6)
2.6 5.1(6) 4.8(6) 4.7(6)
Biuro Audytorskie Sadren Sp. z o.o. ul. Âniadeckich 10, 00-656 Warsaw 21 22 621-6231 /22 625-1131 biuro@sadren.com.pl, www.sadren.com.pl
2.1 3.5 3.6 3.5
2.2 3.7 3.7 3.7
66% 28%
4% 2%
✓ ✓
✓ -
22
Grupa Gumu∏ka - Audyt Sp. z o.o. ul. Jana Matejki 4, 40-077 Katowice 32 253-0715/032 201-1765 audyt@gumulka.pl, www.gumulka.pl
2.0 3.4 2.8 2.8
3.6 5.8 4.3 4.0
19% 39%
38% 4%
✓ ✓
✓ ✓
23
Estelligence Sp. z o.o. ul. Dàbrowskiego 62, 02-561 Warsaw 22 845-0372/22 845-0372 kontakt@estelligence.com, www.estelligence.com
1.6 2.7 1.5 0.9
1.7 2.7 1.5 0.9
95% -
5%
✓
-
WND
Zespó∏ Us∏ug Finansowo - Ksi´gowych Bilans - Servis Sp. z o. o. Grupa Finans - Servis 24 ul. Zagnaƒska 84, 25-528 Kielce 41 368-6669/41 368-6070 audyt@bilans-servis.com.pl www.bilans-servis.com.pl
WND 2.6(1) 2.5(1) 2.2(1)
WND 2.9(1) 2.8(1) 2.6(1)
18% 73%
5% 4%
✓ ✓
✓ ✓
Perfecta Audit Services Sp. z o.o. ul. Grójecka 38, 02-314 Warsaw 22 822-1368/22 823-9462 perfecta@audit.pl, www.audit.pl
1.1 2.1 1.8 1.6
1.2 2.2 2.0 1.7
86% 7%
7%
✓ ✓
26 ul. Reymonta 45, 45-072 Opole
Agencja Bieg∏ych Rewidentów Badex Sp. z o.o.
1.1 1.6 1.6 1.6
1.2 1.7 1.7 1.6
7% 86%
2% 5%
Agencja Us∏ug Ksi´gowo-Prawnych Biegli Rewidenci Sp. z o.o. ul. Sandomierska 105, 25-324 Kielce 26 41 366-2321/41 366-3579 biegli_rewidenci@pro.onet.pl, www.bieglirewidenci-kielce.com.pl
1.1 1.6 1.5 1.5
1.1 1.7 1.6 1.6
1.9% 95.1%
28
MK CONSULTING Sp. z o.o., Sp. k. ul. Mariensztat 8, 00-302 Warsaw 22 538-9160/22 538-9161 mk@mkconsulting.pl, www.mkconsulting.pl
0.9 1.5 1.3 0.9
0.9 1.5 1.3 0.9
29
Mac Auditor Sp. z o.o. ul. Nowoursynowska 131A, 02-797 Warsaw 22 649-2766/022 649-2766 macauditor@macauditor.pl, www.macauditor.pl
1.0 1.4 1.3 1.0
30
Optant Sp. z o.o. ul. Berezyƒska 39, 03-908 Warsaw 22 617-2233/22 617-2233 biuro@optant.com.pl, www.optant.com.pl
30
20
25
Korycka, Budziak & Audytorzy Sp. z o.o. ul. Solec 22, 00-410 Warsaw 22 522-2390/22 522-2391 kba@kba.com.pl, www.kba.com.pl
77 454-5410/77 454-0898 badex@badex.com.pl, www.badex.com.pl
NR
55% 32%
12% 1%
✓ ✓
Selected clients
Polar Import Polska (SAAB); Atlas Copco; MSR/MSSF; controlling; outsourcing; StayPoland; Annik; Cheminova Polska; Strax shelf companies; accounting advisory; HR Polska; Pedersen & Partners; Inter Energia; and payroll; legal and customs services Woodfill & Presler; 4P research mix; Amoena Polska
Notes: NA = Not Applicable, NR = Not Rank ed, WND = Would Not Disclose. Research for The List was done in August/September 2010. Number of employees and ownership structure are as of August 2010. All information pertains to the companies’ activities in P oland. Companies not responding to our survey are not listed. Footnotes: (1) Financial year: July 1-June 30; (2) Group of Mazars & Guérard Audyt Sp. z o.o. and Mazars & Guérard P olska Sp. z o.o.; (3)Financial year: September 1-August 31; (4) The Baker Tilly in Poland consists of Baker Tilly Poland Sp. z o.o.; Baker Tilly Smoczyƒski i Partnerzy and Contract Administration Sp. z o.o.; (5) TPA Horwath consists of TPA Horwath Accounting Sp. z o.o. and TPA Horwath Horodko Audit Sp. z o.o.; (6) Financial y ear: October 1-September 30
Top local executive / Title
President
President
President
WND
President
President
President
President
President
President
Managing Partner
Managing Partner
Arnaud Tual
Managing Partner
Raphael Vieuxmaire
Member of the Board; Co-partner
Manager
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22
ENTERTAINMENT
www.wbj.pl
JANUARY 10-16, 2011
Concerts
Echoes of Bajka in 2011 “Sounds of Bajka” concerts: COURTESY OF HISTORY MEETING HOUSE
Natalia Kukulska – Jan 31 Poluzjanci – Feb 21 Anita Lipnicka & John Porter – Feb 28 Raz, Dwa, Trzy – Apr 4 Teatr Bajka ul. Marsza∏kowska 138
Photography
Winter in the city
Faced with the seemingly endless Polish winter, it’s important to get out and shake off the cabin fever. Some people might want to try to forget the snowy weather for a few hours, but for those who aren’t utterly sick of the cold, History Meeting House (Dom Spotkaƒ z Kultury) has a different idea. The W arsaw museum, which specializes in 20th centu-
ry history, is exhibiting a collection of old photographs of winters past. The exhibition – “Snow of Bygone Days. Winter in the Cities” (“Niegdysiejsze Êniegi. Zima w metropoliach”) – includes halcyon snapshots of Warsaw, Vienna, Berlin, Paris, London and New York. This is a celebration of the metropolis as winter wonderland. On display are idyllic scenes of work and play, each a poignant reminder that the cold weather is not just about runny noses and malfunctioning public transportation. The exhibition runs to midMarch. In F ebruary, mean-
while, History Meeting House also expects to run some workshops for children. T opics include “Symbols of Warsaw,” “How did great-grandfather play?” and “W arsaw streets, then and now.” It’s Polish-language only, unfortunately, but free. Interested and able parties should contact a.nowacka@dsh.waw.pl or edu@dsh.waw.pl. Entry to “Snow of Bygone Days. Winter in the Cities” is also free of charge.
Teatr Bajka is a cozy venue. It feels a bit like a high school auditorium, but the stage is intimate enough and the acoustics are good. And it will be interesting to see how Kukulska – whose last two albums have been synthesizer heavy – adapts her performance to the theatrical environment. “Sounds of Bajka” will continue in F ebruary with performances by P oluzjanci and Anita Lipnicka & John Porter, and in April with a concert by Raz, Dwa, Trzy. E Blake Berry
Tickets for Natalia Kukulska’s concert run z∏.59, z∏.89 and z∏.109. For more info and bookings, log on to www.teatrbajka.pl
EBB
For more info, log on to www.dsh.waw.pl
COURTESY OF TEATR BAJKA
“Snow of Bygone Days. Winter in the Cities” runs to March 15 History Meeting House ul. Karowa 20
We may have put 2010 behind us, but some of the good things begun last year remain the same. T eatr Bajka’s “Sounds of Bajka” series is a prime example. Launched last autumn, the concert cycle presents wellknown Polish artists up close and personal, performing
acoustic arrangements of their repertoires. T o date Patrycja Markowska and Kasia Kowalska as well as bands Ira and Bracia have taken to the stage at T eatr Bajka. The popularity of these concerts has led the theater to continue “Sounds of Bajka” in 2011. First up will be Natalia Kukulska, whose career began at the tender age of 10 with songs about puppies and dolls. As an adult, her work has remained largely in R&B and electro-pop territory – the kind of songs which take a fair amount of rearrangement for a small-stage setting. That may explain why her concert will be electro-acoustic, rather than completely unplugged.
Natalia Kukulska will perform at Teatr Bajka on January 31
Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl
Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl
Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl
LAST WORD
JANUARY 10-16, 2011
www.wbj.pl
23
Tech Eye
Welcome to 2011, damn it
picked out, halfway between the local vicarage and an infamous house of burlesque (along the busiest thoroughfare in the village). We even sent a letter to Ban Kimoon at the United Nations extolling the virtues of 2010 (“slightly rumpled, but very comfortable”). And if those efforts failed to convince people to abandon the whole concept of the New Y ear, Techeye was prepared to establish an underground movement dedicated to fighting it. This band of temporally
challenged guerrillas would mount fearsome strikes on 2011 (mainly through quirky flash mobs) before mysteriously disappearing, cloaked in their stubborn refusal to acknowledge the present. It would all be terribly existential. So why didn’t it come to pass? Well, we were headed out to picket when one of the local fishwives saw our sign and shouted, “Oy, what abou’ CES 2011, ye munghead?” The annual Consumer Electronics Show (CES) is the biggest, most important tech fair of the year... and we nearly forgot. All thoughts of picketing were immediately abandoned and we rushed off to buy a ridiculously overpriced plane ticket to Las Vegas. How to describe CES? Cacophony. Chubby, salivating nerds everywhere. Scantily clad models feigning interest in chubby nerds. More 3D TVs than you can shake a cross-eyed kid at. In a word: Nirvana. One item thronged on the showroom floor was T oshiba’s as-yetunnamed tablet (some are simply
calling it the Toshiba Tablet). It’s got a 10.1 inch, HD display (compared to the iPad’s 9.7 inch screen) and it will run Honeycomb, the first Android operating system built with
COURTESY OF KODAK
A HIB OS FT YO S TE UR CO
Techeye came very close to boycotting the New Y ear. We had our picketing signs ready (“R efudiate 2011!”, “Keep your hands off our junk, 2011!”) and had a prime s p o t
tablets in mind, rather than smartphones. The machine should hit shelves in the first half of 2011; no price point has been announced, but expect it to compete with the iPad. Another interesting gadget was Kodak’s Playfull, a slender video camera “made for social butterflies
and social networking superstars.” The camera’s software is designed to make it as simple as possible to upload to Y outube, F acebook or what-have-you, and it boasts full 1080p HD video and 5 MP HD stills. There’s also the option to record using a “70’s film look” effect, a feature presumably targeted at people who love disco, “Shaft” and cheesy disaster flicks. The world’s last Kodachrome film processing facility closed up shop in December, marking the end of a photographic era, but it’s nice to see that Kodak itself hasn’t disappeared. Its Playfull product comes out this spring at a price of $149.95 (z∏.441). Finally, Techeye was smitten with Lenovo’s IdeaCentre A320 AIO, which it’s touting as the world’s slimmest all-inone computer. It’s got a 21.5inch widescreen display and runs on Intel’s new Core i5 processor. Other features include HDMI in/out and up to 8GB of RAM and a 750GB HDD.
The A320 should be available in June, starting from $699 (z∏.2,057). Be warned though – it will probably make you look fat. That’s all the CES goodness we could fit this time, but Techeye will cover a few more gadgets next week. In the meantime, maybe we’ll start a petition to hold the show every week, or at least twice monthly. Ban Ki-moon should expect a letter to that effect very soon. ●
O OV EN FL YO S TE UR CO
Ever engaged in a temporally challenged form of existential protest? Let us know: techeye@wbj.pl sare_268x81.ai
22-03-10
13:25:37
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