WBJ #8 2011

Telecoms giant TP and broadcaster TVN have reported major profit dives

Labor Minister Jolanta Fedak talks jobs, retirement and society

A profanity-filled comic about Chopin has embarrassed the gov’t 8-9

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WWW.WBJ.PL

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VOLUME 17, NUMBER 8 • FEB 28 – MAR 6, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

The search is on

REAL ESTATE

COURTESY OF ADVANCED PR

Lokale Immobilia

The economy is up, wages are rising and people are looking for new jobs. How many of them work at your company?

12-13

• Immobel’s purchase • Ronson’s projects • Panattoni interview 15-18

Book of Lists 2011 debuts this week at the annual Gala

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . .5-6 Listed Firms . . . . . . . . . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Politics . . . . . . . . . . . . . . . . . . . . . .10 Opinion . . . . . . . . . . . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Markets . . . . . . . . . . . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . . .15-18 Business Environment . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . . . . .20 Arts & Culture . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Libya shakes markets

Marriage of convenience

The uprising in Libya has spooked Polish businesses and sent oil prices north 3

˚abka, ˚abka, the the top top frog frog in in Poland’s Poland’s convenience convenience store store market, market, is is being being sold. sold. And And Tesco’s Tesco’s not not the the buyer buyer 55

Investing in Poland 2011 is available now!

presents

We have also launched a new website for investors!

For investment news and analysis, visit: www.investinginpoland.wbj.pl

To order a print copy or CD-ROM version of the publication, e-mail kwilinski@valkea.com or call +48 (22) 639 85 67 ext. 208

2

NEWS

www.wbj.pl

Poland willing to help North African immigrants

FEBRUARY 28 – MARCH 6, 2011

IN THE SPOTLIGHT

Numbers in the News

Parliamentary election date

Polish Minister of Interior and Administration Jerzy Miller has said Poland could help immigrants staying in countries located in the south of Europe. “Poland is ready to send both equipment and human support,” he explained, adding that significant resources will be needed. However, countries in need will have to formally request aid from Poland first.

Germany’s Ministry of Transport wants to create a new approach for sea vessels coming in to the Polish port of ÂwinoujÊcie, Rzeczpospolita reported.

The proposal stands as an alternative to moving the Russian-German Nord Stream gas pipeline deeper, which is Warsaw’s proposal.

According to the paper, if the new approach were adopted, it would add another 30 minutes to the voyages of most ships coming into the port. The worry remains, however, that the construction of the pipeline could disrupt the safe passage of ships with a large draft. The Polish Ministry of Infrastructure suggested the pipeline be moved down to the seabed, so that the largest vessels using the port – currently with drafts of 17 meters – could still be accommodated.

Germany stands opposed to the proposal.

Poland expresses quake condolences Both President Bronis∏aw Komorowski and Prime Minister Donald Tusk expressed their condolences over the earthquake that struck New Zealand last Monday. On behalf of the Polish people and the Polish government, they offered their sympathy to New Zealand’s government, as well as to the families of the victims. ●

4.2 percent is the Economy Ministry’s latest forecast for 2011 GDP growth

z∏.526.8 million is how much Poland’s public broadcaster received from TV subscriptions last year, compared to nearly z∏.1 billion 10 years ago

z∏.2.5 billion is how much Polish employers spent on temp hires in 2010

Quote of the Week “Do you know what will happen when these animals see [those dancers]? ... A f—ing fagholocaust”

SHUTTERSTOCK

Germany proposes new route to ÂwinoujÊcie

z∏.3.9 billion is how much Poles are expected to spend on bottled water this year

When should Poland hold its next parliamentary elections?

That’s a tough question, it seems, as the country’s politicians can’t seem to agree.

According to the Polish Constitution, the president must announce the election date to the Sejm and Senate no later than 90 days before the end of their current term. The elections themselves have to be held on a non-working day within the 30-day period preceding the end-of-term date.

Barring the unlikely prospect of early elections, that leaves Poland with four possible election dates: October 9, 16, 23 and 30. President Bronis∏aw Komorowski is now weighing these options and is expected to discuss the matter with political parties, the gov-

ernment and certain NGOs. Having already consulted with the National Electoral Commission, Mr Komorowski has ruled out October 30.

That’s two days before All Saints’ Day, a major holiday in Poland, and it might be difficult to find people to staff all the polling stations.

Conversely, politicians of the Law and Justice (PiS) and the Democratic Left Alliance parties have come out in favor of that date. For its part, the ruling Civic Platform party prefers the October 23 date.

Mr Komorowski also recently said that he was considering holding elections over two days, an option provided for under a new law adopted last December. Two days of voting would help increase

turnout, it is hoped, but it would also be more expensive.

Only once has modern Poland seen two-day voting – in June 2003, when Poles voted on EU accession in a referendum. Turnout in that referendum amounted to 58.85 percent.

The matter is still up for debate, however, and some parties have expressed apprehension concerning two-day voting. PiS politicians, for example, suggested that extended voting could increase the likelihood of election silence violations.

Meanwhile, a recent SMG/KRC poll for Fakty TVN found that just 22 percent of Poles are in favor of two-day voting.

Adam Zdrodowski

The skinhead in “Chopin New Romantic” cautions Fredyryk Chopin against bringing dancers into a prison (see story p.4)

Figures in focus Concrete figures Construction output (% change on previous quarter), 2010 EU27

Poland

Germany

United Kingdom

Romania

Bulgaria

20 15 10 5 0 -5 -10 -15 -20 -25

Q1

Q2

Q3

Q4 Source: Eurostat

On WBJ.pl Best of the blogs WBJ.pl takes you on a tour of the blogs crowned by Onet.pl’s “Blog of the year” competition. Log on to find out more about premier league of Poland’s blogging community.

DATELINE

March 1 Event:

1-5

8th Annual CEEQA Gala. Annual industry awards for business performance & achievement in Central & Eastern European real estate in 2010. Preceded by Forum & Panel Debate GREEN DEBATE 2 Location: Warsaw Marriott Hotel. www.cee-insight.com

CEBIT 2011

Event:

CeBIT 2011. Poland will be an official partner of the event in 2012. Location: Hannover, Germany. www.cebit.de/home

3

BOOK OF LISTS GALA AND WBJ AWARDS Warsaw Business Journal launches the 16th edition of its annual Book of Lists ranking

Event:

WBJ Awards. Location: Teatr Bajka, Marsza∏kowska 138, Warsaw.

CEEQA GALA & AWARDS

publication, and hands out the prestigious

3

ACCESS MBA TOUR

Event:

Access MBA Tour in Warsaw. Location: Mamaison Hotel Le Regina, Warsaw. www.accessmba.com

8-11

MIPIM & MIPIM HORIZONS

Event:

Real Estate Event for Professionals. Location: Cannes, France. www.mipim.com

9-13

ITB BERLIN

Event:

Travel Trade Show. Location: Messe Berlin, Germany. www1.messe-berlin.de

Company index Advanced PR ..............................15 América Móvil ..............................5 Apax..............................................5 Apteka pod Ró˝à ........................18 Aqua Power System Japan........23 Asbis Enterprises ......................14 Asseco Poland............................20 Aster ............................................5 Athenasoft ..................................20 Atlas Estates ..............................17 Austrian Airlines ........................19 Axle & Manufacturing................17 Bain ..............................................5 Biuro Projektowania Systemów Cyfrowych ................20 Blackstone ..................................5 Blue Ocean Investment Group ..18 BOIG Project Management........18 BOIG Property Consulting ........18 British-Polish Chamber of Commerce..................................13 Budimex NieruchomoÊci ..........16 CBOS ..........................................10 CCC ............................................18 Centrum Development & Investments................................15 Cersanit......................................18 CEZ ............................................14 Colliers International ................19 ComArch ....................................20 Cushman & Wakefield ........15, 19 Damco Poland............................18 Deloitte Business Consulting....19 Deutsche Bank ............................5 Dipservice ..................................16 DM WZ WBK ................................3 DPTG ............................................7 e-Muzyka......................................7 Eastbridge Group ......................15 Echo Investment ........................18 Elektrobudowa ..........................15 Elstar Oils ..................................14 Empik Media & Fashion ............15 Euro-Invest ................................15 Ferro ............................................6 French Chamber of Commerce and Industry........19 Gastel ˚urawie ..........................14 Gazprom ....................................12 Getin Holding ..............................7 Globe Trade Centre....................14

GM ..............................................19 GN Store Nord ............................7 Hays............................................12 Heuthes ......................................20 Hogart ........................................20 IDMSA ..........................................7 Immobel ....................................15 IMPAQ ........................................20 ING................................................5 Innovation Technology Group ....20 Inwestycja Grzybowska..............18 Jones Lang LaSalle ..................16 Juvenes Projekt ........................16 KGHM ....................................5, 14 KKR ..............................................5 Kulczyk Holding ........................15 Lena Lighting ............................14 Liberty Global ..............................5 Lot Polish Airlines ....................19 Lotos ............................................3 Lufthansa ..................................19 Macrologic..................................20 MakerBot Industries..................23 Mid Europa Partners ..................5 MOFO Architekci ........................16 Naftogaz ....................................12 NDI ..............................................3 Netia ............................................7 NFI Empik Media & Fashion ......7 Niezalezna.pl..............................10 Novaservis....................................6 OPEC ..........................................14 Opoczno......................................18 Optimus ......................................14 Oracle Polska ............................20 Orascom Telecom ........................5 Orlen ........................................3, 5 Panattoni Development Company..............17 PBG ............................................14 Pekaes........................................18 Penta Investments ......................5 Pepees........................................14 Peter nielsen & partners ..........19 Pfleiderer Grajewo ....................14 PGE ............................................14 PGNiG ................................3, 5, 14 PKN Orlen ..................................14 Plastic Omnium ........................18 PM Group ..................................17 Poczta Polska ..............................6

Polimex Mostostal ................3, 14 Polkomtel ....................................5 Polomarket ................................18 Praca.pl ......................................12 Pracuj.pl ....................................12 Pronox Technology ....................14 Providence....................................5 PZU ............................................14 Raiffeisen Bank..........................17 Remy Automotive Poland ..........17 Ronson Development ................15 RTV Euro AGD ............................18 Salon24.pl ..................................10 Salus International ....................18 SAS Institute ..............................20 SB Granit......................................3 Servier ........................................19 Shapeways ................................23 Sobieski Institute ........................3 Societe Generale Corporate & Investment Banking ..................19 SPEC ............................................5 SWISS ........................................19 Sygnity ........................................20 Techmex ....................................14 Telefónica ....................................5 TeliaSonera ..................................5 Tesco ......................................5, 16 Teta ............................................20 TNS OBOP ..................................10 TP............................................7, 14 TPG ..............................................5 TVN ..............................................7 Unibep ..................................16, 18 Unidevelopment ........................18 Vattenfall ......................................5 “Vide Studio” Wojciech Kurzak..18 Virtualo ........................................7 Vodafone Group............................5 Warfama ....................................14 Warsaw Stock Exchange ........6, 7 World Bank ................................19 Young Digital Planet ..................20 Zentiva PL ..................................19 ZUS ..............................................8 ˚abka Polska ..............................5 ˚yrardów Investment ................18

NEWS

FEBRUARY 28 – MARCH 6, 2011

www.wbj.pl

3

The Libya crisis and Poland’s economy

Libya unrest creates slippery situation Continuing unrest and violence in Libya, together with signals from other oil producers, sent the price of Brent crude up to $120 last week.

The spike was brief, but high oil prices spell trouble for the Polish economy.

Rumors that embattled Libyan leader Muammar alGaddafi could sabotage the country’s oil infrastructure have the market on edge, although Saudi Arabia has offered assurances that it can cover a supply shortfall.

Polish supplies are not directly threatened, since the country’s principal refiners – Lotos and Orlen – get most of their oil from Russia. Howev-

COURTESY OF WIKIMEDIA COMMONS

Oil and currency trading are being hit by shock waves from Libya

Rumors that Gaddafi could sabotage Libyan oil infrastructure spooked markets er, rising oil prices threaten to push up Poland’s inflation

rate, making investors more risk averse.

At the same time, investors seeking stability have

Roads & Euro 2012

pushed the Swiss franc up, a situation which could hurt the many Polish homeowners with mortgages denominated in that currency. Last Friday the Swiss franc stood at z∏.3.10, compared to an average exchange rate of z∏.3.05 for January. The average for February 2010, meanwhile, was z∏.2.73.

The situation is not necessarily dire, however. There were signs at the end of last week that the franc could be weakening slightly against world currencies, for example.

And Pawe∏ Burzyƒski, an analyst at DM WZ WBK, was relatively sanguine regarding oil prices in general.

“The market has balanced out recent events,” he said, adding that he expected oil to be trading at $100 a barrel in two weeks’ time.

Mr Burzyƒski foresees consequences for Poland, nevertheless. “The Polish economy will be hit twice,” he said first, due to the depreciating z∏oty and second, due to the increased cost of importing oil.

This will “definitely increase inflationary pressure,” he added, and it will lead to “timid growth expectations.”

As WBJ went to press, the situation in Libya appeared to be growing more unstable.

The government had lost control of many cities and, according to numerous reports, the military and police were firing on protestors.

Polish citizens had been advised to leave the country and companies such as PGNiG and Polimex Mostostal had pulled their foreign employees out.

Alexander Hayes

Afghanistan

A4 contract terminated Gov’t disagreement Poland’s General Directorate for National Roads and Motorways (GDDKiA) has broken off its contract with a consortium comprising Poland’s NDI and Macedonian SB Granit.

The firms were to build a 21km section of the A4 highway.

The termination of the contract means that the road won’t be open for traffic in time for the Euro 2012 soccer championships, which Poland will co-host with Ukraine.

Marcin Hadaj, a spokesperson for GDDKiA, told TVN24 that the termination was necessary due to delays which have plagued construction. The

fault lies on the side of the contractor, GDDKiA said on its website, listing specific areas where it says the consortium has not lived up to its duties.

According to the roads authority, NDI and SB Granit are responsible for a ninemonth delay in construction on a bridge and for a four-anda-half month delay in road building. Moreover, at the halfway point in the construction schedule, work is reported to be 17 percent complete.

GDDKiA also noted that it had paid the consortium z∏.87 million for the work it had done so far. This is compared to the z∏.271 million which had been earmarked for construction by this stage.

The authority plans to impose a penalty on the consortium equal to 10 percent of the contract’s total value.

NDI and SB Granit jointly informed GDDKiA of their plan to pull out of the contract as early as February 9. They attributed the delay to last year’s flooding, mistakes in the construction design and to archaeological research conducted by GDDKiA on part of the highway.

According to the Conciliation Commission, which handled the disagreement between GDDKiA and the consortium, both sides are at fault. Neither party has accepted the blame, however, and both plan to take NK the matter to court.

Emissions trading

Poland looks to opt out of EU emissions allocation system The country would rather distribute free permits in exchange for environmentally friendly investment Poland, Germany and the UK have decided to create their own platforms for auctioning carbon emissions allowances starting in 2013.

The European Commission has long advocated abolishing separate national allocation plans in favor of a common platform. But member states retain the possibility to opt out of the EU-wide scheme.

For Poland and its heavily coal-dependent energy sector,

it’s an attractive option. Opting out will enable the government to distribute free permits to selected power plants in return for guarantees that they invest the same amounts in reducing the pollution they create.

This, explained Robert Zajdler, an energy expert at the Sobieski Institute, a think tank, would be a simpler solution than selling permits to the installations and then redistributing the money to the same installations to aid environment-friendly investment.

However, it’s still uncertain whether Poland will be allowed to opt out. Member states that

want to opt out must submit a list of the pro-environment investments they plan to fund with the free allowances by September. The EC will then judge whether the plans meet pan-European standards.

Polish energy companies have complained that uncertainty concerning the next emission-trading scheme (2013-2020) is discouraging investment. Meanwhile, the Polish energy sector needs an estimated €200 billion in investment over the next 10 years to increase its capacity and carry out necessary repairs, according to Rzeczpospolita.

Alice Trudelle

over troop pullout

COURTESY OF US DOD/PFC RICHARD JONES

The highway won’t be ready for Euro 2012

When will Polish soldiers be coming home from Afghanistan?

The president wants to start bringing Polish troops home from Afghanistan in 2011 President Komorowski has stated that Poland should begin withdrawing troops from Afghanistan in 2011.

“This is consistent with earlier declarations at the NATO meeting in Lisbon in November last year,” Stanis∏aw Koziej, head of the National Security Bureau (BBN), said in a statement.

However, both the head of the Defense Ministry and members of the General Staff have expressed doubts.

Defense Minister Bogdan Klich commented that any reduction in the number of sol-

diers would only take place in the autumn and winter, when the Taliban are less active, according to Gazeta Wyborcza.

The daily also quoted General Staff Colonel Andrzej Wiatrowski as saying that withdrawal would not begin before 2012.

According Mr Koziej, the withdrawal operation is to be divided into three stages. There will be a gradual troop withdrawal, with the Polish mission giving up its responsibility for the Afghan province of Ghazni in 2012.

In 2013-2014, Polish soldiers are to take part in a training mission while also maintaining combat readiness to support Afghan and coalition forces.

Final withdrawal is set for 2014,

but Poland would still remain ready to assist Afghans with military training and technical cooperation.

Meanwhile, the media have reported that Polish troops in Afghanistan have detained Sana Mohammad, one of the main Taliban commanders in the Andar district, east of Ghazni Province. He is suspected of recruiting fighters outside Afghanistan, training suicide bombers and collecting funds for the Taliban, Dariusz Kudlewski, a spokesperson for the Polish mission in Afghanistan, told Gazeta Prawna.

The 2,600-strong Polish force is part of NATO’s International Security Assistance Force.

Alice Trudelle

NEWS

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Eastern Partnership summit moved An international summit involving leaders from all 27 EU members and the six Eastern Partnership countries which was to be held near Budapest in May will now likely be held in Poland in October or November during the Polish presidency of the EU Council. Hungarian Foreign Minister János Martonyi said that the reasons for the change of date and venue were purely logistical.

Tunisia arrests alleged priestkiller Tunisian authorities say they have arrested the alleged killer of Polish priest Marek Rybiƒski.

According to officials, the man accused of the murder is a Tunisian carpenter at the mission where Father Rybiƒski was found dead. The priest, 34, was found with his throat cut in the garage of a private religious school in a suburb of Tunis. ●

FEBRUARY 28 – MARCH 6, 2011

Chopin controversy

Graphic novel gets way too graphic

“F—ing fag-holocaust” and prison riot intended to teach German kids about Chopin?

A graphic novel about famed Polish composer Fryderyk Chopin caused an international stir last week when the book’s use of graphic language came to the public’s attention.

This in turn raised questions about why the Polish government had financed the book and why it planned to distribute it in German schools.

“Chopin New Romantic” is a 148-page anthology of stories in both Polish and German. It was commissioned to commemorate the Year of Chopin, whose events official-

ly came to an end in February.

The most controversial tale in “Chopin New Romantic” follows the composer as he prepares for a concert in a modern-day prison. His main interlocutor is a skinhead previously incarcerated in the facility. “Why the f— is he standing there?”, “where is that p—y?”, “why the f— did you bring them anyway?” and “f—ing fag-holocaust” are among the profanity-strewn turns of phrase in the book.

One scene shows the skinhead snorting lines of white powder.

The story ends in a prison riot.

The Polish Embassy in Berlin and the Polish Foreign Ministry spent €27,000 to commission and print the graphic novel. The Embassy confirmed to TVN Warszawa last week that the comic book was meant to be used in German schools.

“Yes, as it’s a comic, we came up with the idea that it would be great to, for example, distribute it in schools for Poland Day,” a representative of the Embassy stated. That person also confirmed that the comic had been printed already, but that it was holding the bulk of the print run.

“Chopin New Romantic”

was created by comic publisher Kultura Gniewu. The firm’s website described it this way: “This unorthodox, sometimes electric and provocative approach to the character of Frederic Chopin creates not just a completely new portrait of the famous Pole, but also shows the freedom and power of comics as a medium.”

The company also describes the graphic novel as “an excellent accent to the end of the Chopin Year.”

Consequences The government’s response to “Chopin New Romantic” took a few days, but officials eventually confirmed that it would be destroyed and that disciplinary action would be taken.

“The milk was spilled, the publication was printed, as a result it must be destroyed,” Deputy Foreign Minister Jan Borkowski said at a press conference, adding that the main goal was to prevent its distribution.

“We will take disciplinary action against those who could have, at the appropriate stage, held up the publication.”

However, the person bearing the greatest responsibility for the gaffe may well escape

COURTESY OF THE MINISTRY OF FOREIGN AFFAIRS

4

FM Sikorski regrets not being able to fire the culprit punishment.

“In reality it was a mistake made by an employee at the Embassy in Berlin,” Foreign Minister Rados∏aw Sikorski later told Radio Zet. “And the one thing that I regret is that I can’t fire that person for making such a scandalous

decision, because [he or she] no longer works for the Foreign Ministry.”

Kultura Gniewu has announced that it will return the money it received from the Ministry of Foreign Affairs to produce the publication.

E Blake Berry

INDUSTRY NEWS

FEBRUARY 28 – MARCH 6, 2011

Energy

Private equity firm Mid Europa Partners has signed an agreement to purchase convenience store chain ˚abka Polska from Penta Investments.

Tesco inked a deal for ˚abka’s Czech chain in December and the British retailer had been mooted as a buyer for the Polish assets as well. The value of the transaction was not revealed, but a representative of Mid Europa said that further details would be made public in the near future. ˚abka has grown since Penta acquired it in 2007, adding 460 new stores over the COURTESY OF VATTENFALL

PGNiG has already expressed interest in the Swedish utility’s Polish holdings

Vattenfall wants to focus on its core markets Netherlands.

“This is not a decision against Poland, but in favor of markets which would allow for large growth,” said Mr Muller.

Polish gas monopolist PGNiG has already voiced its interest in Vattenfall’s Warsawbased heat and power assets. It is also interested in purchasing SPEC, the firm that operates Warsaw’s heating network.

A final decision will be made after the appropriate analyses

have been conducted, Rados∏aw Dudziƒski, vice president of PGNiG, told Puls Biznesu. He added that the group would take a close look at SPEC and wait for an official sales declaration from Vattenfall before taking action.

PGNiG wants to invest in energy and heat production based on natural gas – the group is the largest supplier of the resource in Poland.

Gareth Price

5

Mid Europa Partners to buy ˚abka

Sale of Vattenfall assets closer

Swedish utility Vattenfall has hired several banks to help sell businesses valued at around €2.5-3 billion in “non-core” countries, unnamed sources close to the matter told Reuters and Dow Jones Newswires.

The news agencies both wrote that the state-owned utility has hired Deutsche Bank to offload operations in Poland, Finland and Denmark.

Vattenfall spokesperson Stefan Mueller said he couldn’t comment on the reports.

Deutsche Bank will reportedly work with ING to help Vattenfall sell its Polish assets.

Sources told Reuters that this may include a heat and power plant in Warsaw and an electricity distribution network in the south of Poland, worth a total of €1.5 billion.

Vattenfall has been reviewing its assets since September with a view to eventually divesting itself of businesses in noncore countries. The utility wants to increase profitability by rolling back 10 years of foreign expansion and focusing on its most important markets in Sweden, Germany and the

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last three years and seeing its profitability increase by nearly 40 percent. The company currently operates over 2,450 stores across Poland under the ˚abka and Freshmarket brands and booked revenues of approximately €650 million last year.

“We have been highly impressed with the ˚abka management team’s track record of delivering strong financial performance, while managing rapid expansion in the Polish retail market,” Zbigniew Rekusz, a partner and head Mid Europa’s Warsaw office, said in a statement.

The transaction awaits the approval of UOKiK, Poland’s competition regulator. Mid Europa Partners appears to have no direct investments in the Polish FMCG market, however, so the regulator is unlikely to block the deal.

The firm is also in the process of selling one of its other Polish assets, cable operator Aster, to Liberty Global.

Mid Europa Partners is primarily engaged in Central and Eastern European markets. It manages funds whose total assets are valued at around €3.2 billion.

Gareth Price

Bids pour in for Polkomtel The deadline to file preliminary offers for telecommunications operator Polkomtel lapsed last week. Polkomtel is the operator of Plus, Poland’s largest mobile network.

Polkomtel’s owners, including oil refiner Orlen, British mobile operator Vodafone Group and copper miner KGHM, are looking to sell 100 percent of the company’s stock before the end of H1 this year.

The company has been valued at around $5 billion.

A total of about 10 interest-

ed parties have submitted offers, Bloomberg wrote, citing two unnamed sources close to the deal.

TeliaSonera, a telecommunications provider well-known in the Nordic and Baltic regions, has made an indicative bid, Reuters reported, quoting a company spokesperson.

A number of private equity firms also filed preliminary offers for the telecoms operator. KKR, Apax, Bain and Providence placed offers alongside joint bidders TPG

and Blackstone. Spain’s Telefónica has also submitted an offer.

Representing the domestic market, Polish investor Zygmunt Solorz-˚ak also filed an offer, according to Rzeczpospolita.

As WBJ went to press it was unknown whether Carlos Slim Helú’s América Móvil or Egypt’s Orascom Telecom had bid, although they have both reportedly expressed interest in doing so in recent weeks.

GP

INDUSTRY NEWS

www.wbj.pl

M&A

COURTESY OF FERRO

Poland’s Ferro closes in on Czech Republic’s Novaservis

Ferro is sizing up one of the Czech Republic’s largest bathroom-fittings firms

If the takeover bid fails, shareholders could benefit from a dividend payout Ferro, one of the largest bathroom and heating appliance firms in Poland, has finished conducting due diligence on Novaservis, one of the Czech Republic’s biggest bathroom accessories companies.

Ferro now expects to receive a response to its takeover offer from the Czech

company at the turn of March and April. Currently, negotiations between the two parties are underway. Ferro has not disclosed the price it offered for Novaservis.

Ferro’s president, Aneta Raczek, told WBJ that completion of the takeover would provide the company with “an opportunity for a significant strengthening of its position in the market.”

It will also enable Ferro to “realize synergy in the sphere

of supplies, logistics and crossselling,” Ms Raczek added, predicting that these aspects should favorably influence the company’s financial results.

The company intends to generate the money by issuing almost 10.5 million Dseries shares. If new securities were to be sold at z∏.10.49 (its closing price on Friday, February 25), Ferro would gain approximately z∏.110 million for the purpose of acquiring Novaservis.

Ferro debuted on the Warsaw Stock Exchange in April last year. According to financial results published on its website, Ferro’s net profit after three quarters of 2010 amounted to z∏.10 million, with revenues of z∏.127 million.

The company’s president said that while full-year 2010 was favorable for the company, its margins were nonetheless hit by the global increases seen in the price of raw materials and by fluctuations in the exchange rates of foreign currencies. Despite these setbacks, the company’s president expects last year’s fullyear net profit to better 2009’s net profit, which amounted to z∏.10.7 million.

Asked if a dividend payout is on the cards, Ms Raczek explained that if the takeover of Novaservis is successful, Ferro would be in favor of retaining its cash. If the undertaking fails, however, the board will recommend at the annual meeting that 50 percent of the company’s profit should be devoted to paying out dividends to shareholders.

Natalia Kazik

FEBRUARY 28 – MARCH 6, 2011

Poczta Polska to lay off 5,000 employees

COURTESY OF WIKIMEDIA COMMONS

6

The paychecks won’t be in the mail for 5,000 Poczta Polska employees come October Poczta Polska, Poland’s publicly owned postal service, plans to lay off 5,000 workers by the end of October, media reported last week. In response to the announcement, the labor union Solidarity said it would picket government offices in Poznaƒ on March 2 and in Warsaw on March 16.

“We hope that there will be real negotiations with the government, which is the owner of our firm,” Bogumi∏ Nowicki, president of the National Communications Secretariat of Solidarity, told PAP. “For the time being, we’re not talking about a strike,” he added.

The union also claims that the government is breaking the law on mass redundancies, and is therefore considering petitioning the prosecutor’s office.

The redundancies result from Poczta Polska’s plans to liquidate 3,000 post offices across the country. They are to be replaced with sales points located in gas stations and convenience stores.

The changes are intended to make the postal service more competitive in time for 2013, when the market will be opened to other postal companies from the European Union.

Alexander Hayes

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LISTED FIRMS

Media

TVN’s Q4 profit takes a nosedive The ad market is growing again, but TVN’s bottom line suffered nonetheless Media group TVN’s fourthquarter 2010 net profit dropped by 93 percent y/y to stand at z∏.15.8 million, the company revealed in a report.

The result was significantly below forecast – analysts polled by Reuters had expected the broadcaster to net z∏.60 million compared to z∏.243 million the year before.

High costs and the absence of non-cash one-offs which had boosted its earnings a year earlier combined to drag on TVN’s bottom line. The company was also hit hard by the weakness of the z∏oty, which increased the value of costs and debt denominated in euro and dollars. As of December 31, the company’s net debt stood at z∏.2.42 billion.

However, revenues driven by advertising and pay TV, amounted to z∏.753 million, up 11 percent year-on-year.

Ad revenue rose a full nine percent in the fourth quarter

alone, hitting z∏.458 million compared to z∏.419 million a year earlier, while revenues from TVN’s ‘n’ digital platform jumped 20 percent from z∏.119 million to z∏.143 million.

The company said that pay TV generated more than half of its full-year revenue growth.

“We can expect an increase in the TV ad revenue market this year,” said Waldemar Stachowiak, an analyst at Ipopema Securities, adding that the

GDP growth expected for Poland will help to underwrite this growth.

“I expect the company’s customer base to grow to 900,000 by the end of the year, but it will be hard to reach EBITDA break-even,” he said.

The company needs to add around z∏.70 million to its earnings before interest, taxes, depreciation, and amortization to break even, he said.

TVN’s total ad revenue and net profit (in z∏. million), Q4 2009-Q4 2010 Net profit

500 400 300 200 100 zł. mln

-100

Q4 2009

Q1 2010

Q2

Q3

Q4

Source: TVN

Telecoms

TP sees net profit plummet

COURTESY OF WIKIMEDIA COMMONS

Revenues also fell and could drop further this year, the group has warned Telecommunications giant TP reported a 91.6 percent y/y fall in 2010 profits after being forced to set aside a huge sum for provisions against possible legal losses.

The group wrote in its results statement that net income for the full year amounted to z∏.108 million.

The result was markedly worse than expected – analysts in a Reuters poll had predicted a net profit of z∏.155 million.

TP’s bottom line was hit because it was forced to set aside z∏.1.1 billion in provisions for claims made by DPTG, a unit of Danish telco GN Store Nord.

Revenues were also down, by 5.1 percent to z∏.15.7 billion, as the fixed-line segment continued to contract and the group felt the effects of competition.

“Revenues did not surprise as we saw the devaluation of all three segments,” said Jakub Viscardi, an analyst at IDMSA. He explained that the fixed-line segment has been shrinking for more than three years, while the telecoms operator has had

TP has had to put aside z∏.1.1 billion to face additional competition in the broadband market. “[Moreover,] cable network operators delivered higher speeds at more attractive prices and alternative telecom Netia also had much more attractive offers during 2010,” he said.

For the fourth quarter, total sales dropped 1.2 percent to z∏.3.96 billion as the group’s fixed-line business contracted by seven percent y/y. The group did, however, see z∏.2 billion from mobile services revenues in Q4, a 6.4 percent y/y increase, as it increased its customer base in this area by 4.5 percent to 14.3 million over the year.

Netia to pay large dividend on earnings?

CEO Maciej Witucki said in a webcast that TP’s fixed-line sales would continue to fall in the face of competition from rivals like Netia.

TP anticipates that its revenues this year will decline by 2.0-4.5 percent this year, as the prices operators are able to charge for calls to their mobile networks are slashed by the market regulator.

“TP has work to do – Q4 2010 broadband net additions showed that competition from Netia will remain hard,” said IDMSA’s Mr Viscardi, adding that the mobile segment is also becoming more competitive.

Gareth Price

7

Empik buys e-Muzyka NFI Empik Media & Fashion purchased 61.49% of e-Muzyka for z∏.7.6 million. Earlier, Empik completed the purchase of book e-store Virtualo.

Getin Q4 profit soars

Netia will spend z∏.150-200 million on dividends

Gareth Price

Advertising profits

Total ad revenue

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WBJ ARCHIVES

FEBRUARY 28 – MARCH 6, 2011

Poland’s second-largest fixedline telecom, Netia, saw a fourth quarter 2010 net profit of z∏.223.72 million, down from the z∏.255.09 million it made during the same period a year earlier.

Revenues amounted to z∏.394.5 million and its adjusted EBITDA came in at z∏.87.7 million. Thanks to the reversal of earlier impairment charges, EBIT for Q4 2010 reached z∏.231.3 million.

The company’s results were consistent with analysts’ forecasts.

The only area of its results that did not meet expectations was the number of people subscribing to the firm’s broadband

services, which was 10,000 lower than the 700,000 the operator had promised. This has been attributed to discounts offered by rival TP. Miros∏aw Godlewski, president of Netia, told Parkiet that the company is not expecting to cut prices by much this year, except those for 20Mb/s and faster broadband.

Some analysts have suggested that the reversal of earlier impairment charges could mean a z∏.510 million dividend.

However, CFO Jonathan Eastick disputed this. Instead, Netia will spend about z∏.150200 million on dividends, he GP, WB told Parkiet.

Financial group Getin Holding’s Q4 2010 net profit shot up by 223% y/y to reach z∏.150 million.

For full-year 2010, Getin Holding booked a net profit of z∏.421 million, as compared to z∏.276 million in 2009.

Foreign investors fuel WSE The Warsaw Stock Exchange is becoming more attractive for foreign investors. In 2010, they generated a record 47% of the WSE’s total trade according to Rzeczpospolita. Analysts say they were attracted by new offerings – 34 new companies debuted on the WSE and generated trade worth z∏.16 billion last year. ●

8

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INTERVIEW

FEBRUARY 28 – MARCH 6, 2011

Pensions and labor

Labor and Social Policy Minister Jolanta Fedak argues for reform of Poland’s retirement system and claims that social and labor policies have been “satisfactory” despite budget difficulties

Ewa Boniecka: There is a public debate ongoing about the government’s plan to reform the pension system by redi-

recting a portion of salary contributions from open pension funds [OFEs] to the Social Insurance Institution [ZUS]. As someone involved in that reform, what’s your view of the debate?

Jolanta Fedak: The government has approved a compromise on the bill, which will not in any way dismantle the OFEs, but instead adjust some aspects of their activity.

According to the proposal, during the next two years the contribution which has so far been transferred to OFEs at the level of 7.3 percent of a salary, will be reduced to 2.3 percent. The difference will be moved to special accounts in ZUS, the state-supported insurance institution.

The bill is now undergoing consultations and public debate. The ministers involved directly in dealing with the reform – of whom I am one – evaluated the present condition of the OFE system. And we have no doubts that the OFE capital retirement system, which was introduced in Poland nearly 11 years ago, has many defects and needs corrections.

The main defects include OFEs’ very high transactional and operating costs, as well as the way they gather and use the financial reserves they acquire. And the OFE system’s high operating costs are effecting negatively our whole public finances and increase our public debt. So this has to be corrected, and in proposing to do so we are not an exception among other countries.

In the present, difficult

COURTESY OF THE MINISTRY OF LABOR AND SOCIAL POLICY

Fedak makes case for pension reform financial situation in Europe, all members of the EU are deliberating over how to lower their public debts. The majority of them have also reduced their reserve levels. This has happened in Lithuania, Latvia, Estonia, Slovakia and Hungary. They acknowledged that those reserves were too high in relation to the macroeconomic situation, which defines the level of public debt.

Yet the debate about OFEs is not just an economic matter – it’s also political. Critics of the government’s proposal claim that it will take real money from people who are saving in private OFEs in exchange for political promises for pensions in ZUS. Nobody is taking money from people saving in OFEs. In any case, it is only part of their savings – the rest went to ZUS

“Nobody is taking money away from people saving in open pension funds” anyway – and the high fees paid to OFEs do not guarantee adequate pensions in the future. And I consider it paradoxical that the present contribution level paid by clients to OFEs is so high in comparison to other countries. For example, in wealthy Sweden, contributions to a similar private retirement system are only at the level of 2.5 percent.

Yet I do not want to argue in any way that the present reform will cure our whole

retirement system. What I am saying about the reform refers only to OFEs, the capital [investment] part of the system. I am for opening the OFEs to include more financial institutions and, as a result, to offer to people a variety of financial products and to make the whole retirement market more competitive and efficient. And this could lead to better pensions in the future.

I am in favor of maintaining the duality of the retirement system, while developing a better mechanism for the coexistence of the OFE capital pension system alongside the state-controlled ZUS system.

Yet the most important thing in reforming the system is to take into account what Poland can afford. In that context, the division of contributions between OFEs and ZUS are, in the long run, a secondary matter, because we all pay for the pension system now and we will pay for it in future.

Do you view the present debate on OFE reform as a means of dealing with the state of Polish finances and the need to reduce public debt, or more as a political confrontation between the government and opponents?

I think that it has those two dimensions, the economic and the political, but in my opinion it there is too much politicking on the part of opponents. Some of them use populist arguments involving the government taking people’s money, but this is not true. It just makes it more difficult to

INTERVIEW

FEBRUARY 28 – MARCH 6, 2011

explain to society the need for the reform and, in my opinion, we in the government should make greater efforts to explain the essence of the reform better.

After all discussions are held, do you think the government’s OFE reform bill will be approved by parliament in April or May? I think that the bill will be approved. We have a parliamentary majority and the coalition government has been functioning well for more than three years already. No other government in the last 10 years has had such a comfortable majority. So I expect that parliament will approve our draft bill to reform the OFEs and it will become law after the president signs it.

gradually allow the transfer of children living in big, overcrowded state-run children’s homes to family-like surroundings.

An already-approved bill concerns changes to the organization of nursery schools [for children between 10 weeks and three years old – ed.]. Local governments are responsible for setting up public nursery schools – which are part of the health-care system, with all the strict rules associated with it – and have had great difficulty in fulfilling all the obligations. As a result, only two percent of counties in the country have [public] nurseries.

Now, under the provisions of the new bill, local governments will have a free hand to organize private care for small children under three years of

in 2007 to 34.9 percent in 2010.

I regard this as a success, although I think that there is still a lot of work to do to convince reluctant employers to hire people over 50 years old.

The unemployment rate has reached a high level of 13 percent. What is your ministry doing to improve the situation?

If our economy maintains its current rate of growth, I expect the level of unemployment to drop to 9.9 percent at the end of this year. And in 2011 we will provide nearly z∏.2 billion from the Labor Fund to actively fight unemployment, which is a big problem not only in Poland but in nearly all EU countries.

In previous years – in spite of financial difficulties – the

“The most important thing in reforming the system is to take into account what Poland can afford” Given the difficulties faced by the state budget, how are you handling social policy?

The condition of our state budget is indeed difficult, so we have to conduct a very cautious social policy. Yet even in a situation involving financial limitations, the government’s social policy is being conducted to a satisfactory standard.

Let me discuss some of the programs. Every year we contribute z∏.550 million to feeding children at schools. In 2009, the government increased family benefits by 40 percent.

In spite of budgetary difficulties, this year we have kept the “becikowe” – the one-time z∏.1,000 allowance for mothers of newborn children. The government has not lowered financing for other social programs either, including aid for homeless people, and we continue to run the alimony program for children in situations where the collection of support payments from one parent is not effective.

So I want to stress that the state has not limited its social policy. On the contrary: in a difficult financial situation, the state’s obligations are greater and our government is responding to these [obligations].

age, so it will be easier for them to fulfill this task. From now on they can establish private nursery care for children for 10 hours, if necessary using outside catering services and premises adapted to the basic needs of this type of institution. Poorer communities will receive additional support from the central government to run such nurseries.

The new bill will also introduce other forms of private child care, like establishing daily clubs which provide five hours of care for small children up to three years old and function flexibly. The local government can create the post of a daily guardian of children, to be performed by a single person, and can help that person to adjust his own living place to do so. Another change will be the possibility for the state to pay pension contributions and also health insurance contributions for a private individual [nanny] who is hired to take care of a child at home on the basis of a formal contract and is paid by the parents.

All of these changes should help working mothers to provide better care for their children and allow some women with small children to enter the workforce.

What is the main focus of social policy right now?

We are finalizing work on bills which expand the forms of child care. One of these concerns the development of programs for foster care for children, which would increase the number of foster families and

And what about programs for older people?

We have created a 50+ program aimed at increasing the number of people employed after that age. As a result of our efforts, the rate of employment among that group of people rose from 29.7 percent

cost of fighting unemployment was even greater: in 2008, it totaled z∏.3.36 billion; in 2009 it was z∏.6.2 billion; and, according to the budget for 2010, it amounted to z∏.6.5 billion.

The money from the Labor Fund has created significant numbers of jobs. In the 20082009 period alone, some 60,000 jobs were created through refunds of hiring costs for employers taking on unemployed people; meanwhile, thanks to funding over 110,000 people started their own economic activity [in that period].

And we will continue this policy this year.

To what extent have EU programs helped the government to fight unemployment?

EU programs help a lot. Every year we can use z∏.2-3 billion of those funds for various kinds of training for the unemployed.

We organize these across the country and target them to various groups of people – the young unemployed, older people and women who have lost jobs or are looking to reskill.

Do our labor laws sufficiently protect the interests of employees and employers alike? What is your ministry’s role in this relationship?

Employers always have a stronger position on the job market. The state plays the role of arbiter between the [employers] and the work force.

The Labor Code is supposed to ensure equitable relations between these two sides, because one side cannot exist without the other. ●

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9

10

POLITICS

www.wbj.pl

FEBRUARY 28 – MARCH 6, 2011

Politics online

Credibility

Kaczyƒski, Kaczyƒska take up blogging

Poland’s most trusted politicians

Jaros∏aw Kaczyƒski, head of main opposition party Law and Justice and twin of late President Lech Kaczyƒski, has taken up the pen, so to speak, and launched a blog. His niece Marta Kaczyƒska, herself the subject of much speculation online, has also joined the blogosphere.

Mr Kaczyƒski started his blog on Salon24.pl, a popular platform. His first post was a transcript of a speech he recently delivered, titled, “Poland and the Polish people deserve modern economic patriotism.” The entry elicited over 1,600 comments in two days, both positive and negative.

Igor Janke, editor-in-chief of Salon24, posted a welcome to Mr Kaczyƒski on his own blog, noting that the PiS leader’s move had generated much interest. Indeed, several Democratic Left Alliance and Civic Platform MPs – as well as Deputy Prime Minister Waldemar Pawlak – used their own underutilized blogs to air views

on Mr Kaczyƒski’s.

“Those are all good signs.

Salon24.pl aims to be pluralistic. We invite politicians and supporters of all factions to participate in serious debates, with arguments from both sides,” Mr Janke wrote.

Embracing this ideal, in his second post Mr Kaczyƒski chose to answer comments to his first entry.

“I hope that this blog will become a good ground for discussions about Poland. I will try to read all entries, both positive and negative, and take into account their suggestions and feedback. Today, I respond to several, but I greet all,” he blogged.

For her part, Marta Kaczyƒska, daughter of the late president and first lady, started blogging on Niezalezna.pl, the website of the conservative monthly magazine of the same name.

Her first entry was a refutation of persistent rumors that she intends to run in the upcoming parliamentary elections. “I do not intend to stand in the coming parliamentary elections,” she wrote.

Alice Trudelle

Grzegorz Napieralski, the leader of the Democratic Left Alliance (SLD), is the secondmost trusted politician in Poland, according to a CBOS poll conducted in February.

Mr Napieralski, fourth on the list in January, overtook Prime Minister Donald Tusk and Foreign Minister Rados∏aw Sikorski. As in January, President Bronis∏aw Komorowski remained first on the list.

Only 14 percent of Poles distrust Mr Napieralski, while over 51 percent say they trust him.

Meanwhile, 47 percent of Poles trust Donald Tusk and Rados∏aw Sikorski. However, 34 percent distrust the PM, while 16 percent distrust Sikorski.

Sixty-five percent of Poles say they trust Bronis∏aw Komorowski, while just 15 percent distrust him.

The least-trusted politician on the list was Law and Justice (PiS) leader Jaros∏aw Kaczyƒski, who commanded 27 percent trust and 56 percent dis-

COURTESY OF MSZ, GRZEGORZ NAPIERALSKI

New blogs by Jaros∏aw Kaczyƒski and Marta Kaczyƒska have spurred online debate

The president is Poland’s most trusted politician, Jaros∏aw Kaczyƒski its least

Mr Komorowski and Mr Napieralski are Poland’s most trusted politicians trust. The latter figure was up five percentage points on the previous month.

Second on the list of the most distrusted politicians was PiS MP Antoni Macierewicz, who heads the Parliamentary Smolensk Investigation Committee. Only 21 percent of Poles trust him, while 41 percent distrust him.

Meanwhile, according to a poll carried out by TNS OBOP, Civic Platform (PO) would get 44 percent of the

vote if parliamentary elections were held today. This means an increase of six percentage points on the previous survey, two weeks earlier.

PiS polled 27 percent support, a rise of one percentage point. However, compared to December they’re up five percentage points.

The proportion of people willing to vote for the leftist SLD dropped by one percentage point to 12 percent. And the only other party that would

pass the five-percent threshold to enter parliament would be the Polish People’s Party, which polled at six percent.

The six percent result which new political grouping Poland Comes First saw two weeks earlier evaporated, leaving just two percent, while about four percent declared support for enfant terrible Janusz Palikot’s new Movement of Support political grouping.

Katarzyna Piasecka, Gareth Price

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Warsaw Business Journal Group, in cooperation with KPMG and the Polish Chamber of Commerce, presents Made in Poland – a guide for importers of Polish products.

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OPINION

FEBRUARY 28 – MARCH 6, 2011

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11

The Matrix and its revolutions Joanna Wóycicka

N

ever before has the democratic world been so confused and its intelligence services so helpless. What to do when allies – dictatorial allies, admittedly – are being swept from power, one after another?

And who to talk to? It has proven impossible to single out any approachable leadership of the protests toppling North African regimes.

In the meantime, journalists with the international media are talking to ordinary citizens with internet access, rather than to local politicians.

Reports submitted via Skype are screened on the world’s main television stations. Films recorded on cell phones are all over the internet.

The power of technology All of this illustrates the power of the internet to disrupt “old-school” politics and reshape them. It has been the faceless masses, coordinating demonstrations online, that have crippled North Africa’s autocracies, not charismatic opposition leaders.

With the help of Facebook and other services, protestors have not only fixed times and locations for gatherings, but also warned each other where police blockades have been set up and advised each other on how to avoid them.

The authorities in these countries are not blind to the source of this threat. In early January, reports came out that Tunisia’s (now former) government was hacking Facebook accounts and censoring debate. Libya, like Egypt before it, has tried its best to unplug the internet.

In the old days, these regimes would simply have dragged unruly opposition leaders off to jail to be tortured. Fortunately this – like turning off the internet – is no

longer a simple matter.

Google instead of bullets At the start of February, Google and Twitter issued a joint communiqué stating that special local telephone numbers had been set up in Egypt on which short reports could be recorded via answering machine. The system would then convert recordings to tweets on Twitter under the #egypt hash tag.

But an even more significant move came on February 17, when US Secretary of State Hillary Clinton announced that the US had allocated additional funds to finance programs to bypass internet censorship in countries such as China, Iran and Cuba.

Washington intends to train dissidents on how to delete

“The internet, for all the opportunities it affords, offers no answers” information from cell phones in case of arrest. And, rather than financing opposition politicians, the US is financing volunteers and experts who will visit Burmese internet cafes and teach people how to set up secure email accounts and how to avoid censorship.

The rise of online grass-roots movements – guerrilla e-communities, in other words – could have major repercussions for authoritarian states around the world.

and more significant trade ties to Europe?

What about the Russian Federation, a vital source of fossil fuels, especially given the instability in the Middle East?

Or the Caucasian countries, suppliers of raw materials to Europe? And then there’s China, the great manufacturer, where the rustle of economic discontent can already be sensed.

Regime shifts in any of these places would have major repercussions for the European economy. On the other hand, there’s little sign that North Africa-style change is in the air. For now, anyway.

People power Keep in mind that both opportunity and danger lie in the wake of revolution. Transformation and new freedoms await North Africa, at least in the short term. And these will be accompanied – in the short term, again – by greater poverty and a fall in living standards, a contraction in the consumer market and fewer foreign investments.

But eventually the situation will stabilize and infrastructure destroyed in the revolution will be rebuilt. The question, then, is will these transformations change lives for the better in the long term?

The internet, for all the opportunities it affords, offers no answers. It is an enabler par excellence and a true embodiment of mass communication, but it can no more rebuild a nation than start a revolution on its own. ●

Who’s next?

While experts debate the consequences of the “Arab awakening” for the rest of the world, it is also worth considering what might happen if other societies follow similar paths. Could “awakenings” occur in nations with closer

Joanna Wóycicka is the former head of the foreign sections of the ˚ycie Warszawy and ˚ycie newspapers and the former head of the foreign department at the Polish Press Agency (PAP). j.woycicka@hotmail.com

Smart firms will keep their talent

J

ust as entrepreneurs adapted to the new, posteconomic crisis business environment, another difficulty has presented itself: the prospect of talented staff leaving for greener pastures.

Recruitment consultancy Hays has found that as many as 55 percent of Polish workers could look for new work this year (see cover story, pp. 1213). While it’s clear not all will actually change jobs, a significant proportion – lured by advancement opportunities, perks, and higher salaries – just might make a move.

Profiting together This is a fact of life in an employees’ market, one which will test companies which shed weight and increased efficiency in response to the economic crisis. Some firms will be up to the challenge of retaining talent; others will not.

Faced with the crisis, did the company simply slash staff and salaries, piling more work on harried employees? Or did it find ways of letting go of inessential personnel and trimming unnecessary spending, rewarding those whose

efficiency increased?

Companies that managed the latter are more likely to retain employees. And not just because their staff feel appreciated, but because management has demonstrated its competence and kept the company on an even footing, economically speaking. This means new opportunities for the company to grow, and thus for career development within it.

Hopefully, managers also took the opportunity afforded by the economic downturn to take a good look at their culture and style of management. For too long, Polish companies – including some internationally owned or managed – have held onto a communist-era mentality: staff are treated as underlings and internal communication is seen as unnecessary.

On the other hand, companies in which employees and management work together to achieve goals will see a high rate of worker retention. Employees like seeing their ideas being taken into account and contributing to a company’s success.

Employment taxes The government could also

play a role in helping companies retain their best people.

Hiring staff, and keeping them on the payroll, still comes with far too many costs.

No government has yet been able to pare down the fees imposed by ZUS, the immense and highly inefficient state-run pension institution, and it’s unlikely this government will slash fees now, given that the budget deficit still threatens to breach a legally mandated threshold.

But making ZUS more cost effective, so that employers’ contributions to the institution could be reduced in the near future, would be a welcome move.

Poland’s admirable performance during the downturn and its speedy recovery have been good for business. But employees, rightly, want to share in that prosperity.

With a little help from a supposedly business-friendly government, companies that have become more efficient – not just stingier – and have improved their management culture, can allow that to happen.

And that will be enough to keep their best talent around. ●

Unless otherwise noted, the opinions here are those of Warsaw Business Journal Readers’ comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

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FEBRUARY 28 – MARCH 6, 2011

Ukraine to supply gas to Poland State-owned Ukrainian gas concern Naftogaz intends to resume gas exports to Poland, newspaper KommersantUkraina reported. By the end of the year the firm wants to have exported 300 million cubic meters of fuel to Poland. The company also has further plans to export up to 10 times more and hopes to eventually supply up to three billion cubic meters. These plans do not please Russian Gas monopolist Gazprom.

The price of sugar has risen by 40% on an annual basis as a result of European Commission regulations, natural disasters and low crop yields. A metric ton of sugar was priced at $773 in London last week, while in May last year it was priced at $413. In the 2009/2010 period, the European Union produced 16.25 million metric tons of sugar, compared to 17.35 million a year before.

The production of sugar in Poland decreased by 200,000 metric tons to reach 1.43 million metric tons.

Private health-care tax break The government has proposed a tax deduction on private health-care premiums and the possibility of financing private health insurance from company social funds. If enacted, a private policy holder would have the possibility of being treated in a public hospital more quickly than patients without private insurance.

Critics leaped on this particular point, stating that such a system would create a divide between the more and the less privileged. ●

SHUTTERSTOCK

Sugar prices leave bitter taste

The labor market

Employees looking for greener pastures Anthony Casey Poland’s job market is shifting – caveat employer If you’re reading this in the office, take a look around you.

Half of your colleagues could be gone by the end of the year, according to a recent analysis of the Polish labor market.

That’s not to say that the plague is on its way to Poland, but rather that the strength of the economy may facilitate job turnover.

The unemployment rate hit 13 percent in January, according to Poland’s Central Statistical Office, a far cry from Poland’s October 2008 low of 8.8 percent, but still lower than what the country saw last winter. In fact, private sector employment increased 3.8 percent y/y in January, a rise which beat market expecta-

tions.

Meanwhile, GDP growth reached 3.8 percent in 2010 and forecasts for 2011 top that.

According to international recruiting firm Hays, author of the aforementioned analysis, as many as 55 percent of

employees plan to change jobs in 2011. Micha∏ M∏ynarczyk, managing director of Hays’ Polish and CEE arms, the Polish specialist employment market is now “candidate driven,” a situation last seen in 2008.

“I am personally amazed by the speed of the recovery, but the fact is that most employers do not realize yet that we are back in the candidate-driven employment market,” Mr M∏ynarczyk cautioned. “They will realize that when they

Rate of change Poland's unemployment rate, 2000-2010*

start losing their top employees who now have multiple alternatives or when they start getting candidates they offer a job dropping out from the recruitment process and taking another offer.”

He described this as “a frustrating lesson, but a necessary eye-opener” which will lead to increased pressure on salaries in the long term.

25

*figure indicates unemployment rate at year end 21

17

13

9

%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: Central Statistical Office

Growing opportunities But will the market actually see such a huge shift? Theoretically it’s possible. But even if 55 percent of those surveyed for Hays’ research indicated their intention to seek new employment, there’s no guarantee they will actually act.

Nevertheless, popular websites Praca.pl and Pracuj.pl both report upturns in jobs being advertised.

COVER STORY

FEBRUARY 28 – MARCH 6, 2011

Shifting industries This growth of job offers clearly hints at change in the labor market in the coming months, even if its scale is debatable. So which areas will be most affected?

Hays’ research suggests that the biggest changes will be seen in the manufacturing sector (about 16 percent), followed by sales and marketing (13 percent), finance (10 percent) and construction (nine percent).

Significant movement is also expected in the IT sector.

According to the firm’s survey, the fields of law, architecture, administration and health care are less likely to see employment shifts.

That’s on the labor side, of course. On the other hand, in Praca.pl’s experience employers in the IT, telecoms, new technologies and construction industries are definitely looking to increase staffing.

“More job offers are also available for account managers and salespeople, accountants, and internet marketing specialists – exactly the same groups that plan to change their jobs according to the Hays report,” Praca.pl’s Micha∏ Filipkiewicz stated. He emphasized, however, that not everyone seeking to change jobs would actually improve their professional status.

Pracuj.pl’s own research, meanwhile, suggests that confidence is high among job seekers. Elizabeth Flasiƒska said that, of about 12,000 people who took part in a survey conducted by her firm, 51 percent

13

Legal Eye

Non-compete clauses Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners. fogo@pl.millercanfield.com

SHUTTERSTOCK

Micha∏ Filipkiewicz, a marketing specialist with Praca.pl, said the figure had been increasing for several months and he expects the trend to continue in 2011.

“More job availabilities sends a clear signal to employees that the job market has favorably changed,” Mr Filipkiewicz stated. “After 18 months of economic depression, when everyone feared losing their jobs and felt lucky when they could keep their present job, employees are now more eager to look for new challenges.”

Pracuj.pl too has seen a marked and ongoing increase in the number of jobs advertised. Spokeswoman Elizabeth Flasiƒska said that in 2010 the portal had carried more than 240,000 job offers – an increase of 50 percent compared to 2009 figures.

“That upward trend has been maintained from the very beginning of this year. In January, employers posted more than 26,000 offers on our website. This gives grounds to believe that employees are thinking more about changing jobs,” Ms Flasiƒska said.

“But,” she added, “it is rather unlikely that such a decision has been taken by more than half of all employees.”

www.wbj.pl

Will offices empty out as Poles look for better-paying jobs? rated their chances of successfully landing a job as good. This confidence could always be misplaced – and many job applicants will learn this the hard way – but it’s a good indicator of the way sentiment is swinging in the market.

Hays’ Micha∏ M∏ynarczyk described this increasing movement in the employment market as a sign of economic health. At the same time, he drew attention to a structural shift now taking place.

“In very developed economies like the US or Germany, the trend is even shifting from a standard full-time jobs to contract jobs, where a typical career is more likely to include several three-to-six-month projects rather than a lifelong employer,” Mr M∏ynarczyk said.

employers struggling to hold on to their best people,” Mr Dembinski said. “One factor that’s different today is that migration is no longer draining the Polish labor force as it was three to four years ago; we estimate that some 300,000 Poles have returned home from the UK since then.”

Employers will certainly face increased costs as talented staff move on. Praca.pl’s Mr Filipkiewicz said these expenses vary, depending largely on the amount of specialization

well. Companies tend to look outwards when they consider brand strengthening, but Aon’s report suggests that employees too need to be aware of and have confidence in their employer’s brand.

Listen to staff, or lose them What it all comes down to is this: Wages are rising – up five percent in January compared to last year, according to Poland’s Central Statistical Office. Meanwhile, the number of job offers is growing and more people appear willing to take a chance on new employment.

According to Pracuj.pl’s Elizabeth Flasiƒska, this means that employers are going to have to listen carefully to what their staff want.

“In the improved economic situation, and with the cost of living increasing, most employees will try to increase their salaries,” she stated. With the economic crisis largely behind us, Ms Flasiƒska noted that employees are not content to simply hold onto their present jobs.

“The situation has changed,” she said, “and if companies do not respond to these expectations, the lack of response from their side may increase the number of people actively seeking new work during the second quarter of 2011.” ●

“In the improved economic situation most employees will try to increase their salaries”

Keeping them happy Is this really the start of an “employee-led” labor market?

If so, what should employers expect?

Michael Dembinski, strategy and policy director at the British-Polish Chamber of Commerce, agreed that the situation appears to have shifted in favor of employees. But, he added, it will take time before a clear picture of the market emerges.

“It’s too early to say whether we’re seeing a return to the employees’ market of 2007 to 2008, with double-digit growth in average wages and

required by the vacant post. In other words, finding the right candidate with the necessary skills costs more in terms of salary and recruitment than simply finding a warm body to discharge general duties.

Asked what employers can do to hold onto their best employees, Mr Filipkiewicz said, “[Keeping employees happy] can be achieved by providing them with good working conditions, a proper salary, training, perks, etc. The more satisfied the employee is, the lower motivation he has to look for another job.”

Research from international HR firm Aon Hewitt suggests there’s another factor as

Growing paychecks Annual growth of average private sector wage in Poland, 2010 6

What is a non-compete clause?

A non-compete clause is a promise not to engage in activity competitive or harmful to that of the employer.

Even without the inclusion of a non-compete clause, an employee is still generally obligated to keep information confidential if the release of such information could injure the employer.

To be safe, though, most attorneys advise their business clients to include a non-compete clause in their employment agreements.

Who? An employer is free to require each employee to sign a noncompete clause, either as part of the employment agreement or as a separate addendum.

Such wording may also be used in the hiring of an independent contractor, professional advisor or service provider.

Average gross monthly salary as of December 31 = z∏.3,847.91

Scope

5 4 3 2 1 %

In comparison to the rest of Europe, Poland appears to have come through the recent economic slowdown relatively unscathed. At the end of 2010 the unemployment rate in Poland stood at 10 percent, according to the European Commission, and GDP growth in Poland in 2010 reached 3.8 percent.

The relatively strong numbers for Poland in comparison to most of the EU have created a bit of a dilemma for Polish business: How to retain a valuable employee? Besides offering a competitive compensation package and positive work environment, what else can an employer do to protect against the loss of a key employee?

One solution, although not foolproof, is to include a noncompetition clause in the employment agreement.

Depending on the scope of the clause, an employee may think twice before deciding to accept a new position from a competitor.

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Source: Central Statistical Office

The Labor Code does not regulate the content of a noncompete clause other than to require that any restriction placed on an employee be proportional to the employee’s duties and potential injury to the employer.

A non-compete clause may be drafted to survive ter-

mination of the employment relationship; however, in such case the restriction may only apply to particularly important information obtained by the former employer during his or her employment. A non-compete clause may not be used to simply prevent an employee from moving to a competitor.

The restriction may, however, prohibit an employee from transferring proprietary information obtained from his former employer to his new employer.

In order for an employee to be bound by a non-compete clause following his or her resignation, the employer must continue to pay the former employee an amount equal to not less than 25 percent of his or her former salary for as long as the non-compete clause remains in effect.

The Labor Code does not place a limit on the length of time a non-compete clause may continue to be enforceable following the resignation of an employee, but in practice a court will not uphold such restriction indefinitely.

Monetary penalties Monetary penalties payable by an employee to an employer in case of breach of a noncompete clause may be defined in advance in the employment agreement itself.

Otherwise, an employer may seek monetary compensation from an employee or former employer equal to the amount of actual damages, without limitation if the breach was intentional.

If the leak was not intentional, however, the maximum amount of compensation that an employer may seek is limited to three months’ salary of the employee.

One final note Liability for breach of a noncompete clause is not limited to the employee. Liability may also transfer to an employee’s new employer if the new employer benefits from the disclosure of confidential information by the employee obtained while working for his former employer.

Moreover, liability is not contingent upon the breach of a non-compete clause. The unauthorized use of proprietary information is actionable with or without a noncompete clause. ●

14

MARKETS

www.wbj.pl

FEBRUARY 28 – MARCH 6, 2011

Stocks report

world stock indices DJIA

NASDAQ

12,064.25 (Feb 24 close)

S&P500

2,741.64 (Feb 24 close)

-2.05% (for the week)

FTSE100

1,306.27 (Feb 24 close)

-3.18% (for the week)

DAX

5,940.75 (Feb 24 close)

-2.54% (for the week)

-2.38% (for the week)

Stocks edge higher

NIKKEI225 7,133.98 (Feb 24 close)

10,452.71 (Feb 24 close)

-3.59% (for the week)

-3.52% (for the week)

CHANGE: 4.20%

CHANGE: 2.43%

CHANGE: 3.87%

CHANGE: 0.69%

CHANGE: 2.30%

CHANGE: 0.97%

(year to Feb 24)

(year to Feb 24)

(year to Feb 24)

(year to Feb 24)

(year to Feb 24)

(year to Feb 24)

52-week high: 12,418.00

52-week high: 2,840.51

52-week high: 1,344.07

52-week high: 6,105.80

52-week high: 7,441.82

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: 5,518.27

52-week low: 8,796.45

Tomasz Jerzyk, technical analyst DM BZ WBK SA Polish stocks inched up last week, as the blue-chip heavy WIG20 index rose by nearly 0.4 percent and the main WIG gained 0.2 percent.

Only the small-cap stocks benchmark finished in the red, declining by 0.7 percent.

Poland missed the recent rally on major global stock markets, but this week its indices outperformed key global stock markets. In Poland the most important macroeconomic data concerned retail sales, which rose by 5.8 percent y/y. This was slightly disappointing, as analysts had predicted an 8.5 percent rise. Additionally, the unemployment rate for January also came in above consensus at 13 percent, which is negative, but weaker data may delay another rate hike. This could help bulls to lift prices higher.

Major indices WIG

46,547.75 (February 24 closure)

WIG20

2,653.94 (February 24 closure)

24.02

23.02

22.02

21.02

18.02

17.02

16.02

15.02

14.02

11.02

10.02

09.02

08.02

24.02

23.02

22.02

21.02

18.02

17.02

16.02

15.02

14.02

2,600

11.02

46,000

10.02

2,630

09.02

46,400

08.02

2,660

07.02

46,800

04.02

2,690

03.02

47,200

02.02

2,720

01.02

47,600

31.01

2,750

28.01

48,000

07.02

52-week low: 2,198.36

04.02

Change year to February 24: -3.66%

03.02

52-week low: 37,949.49

02.02

52-week high: 2,794.58

Change year to February 24: -2.31%

01.02

Change for the week: 0.46%

31.01

52-week high: 48,371.02

28.01

Change for the week: -0.06%

Top 5 GRAJEWO WARFAMA GASTELZUR PEPEES PRONOX

Closing 19.03 2.05 0.66 0.73 1.27

% change (week) 52-week high 20.44 19.51 18.50 2.09 17.86 2.08 15.87 0.73 12.39 2.32

52-week low 7.40 1.50 0.53 0.43 0.58

Top 5 PGNIG PZU PKNORLEN CEZ GTC

Closing 3.85 349.00 45.10 134.50 21.15

% change (week) 3.49 3.41 2.73 1.51 1.20

52-week high 3.93 417.50 49.00 148.80 25.00

52-week low 3.16 326.00 33.29 118.70 20.75

Bottom 5 TECHMEX LENA ELSTAROIL ASBIS OPTIMUS

Closing 0.12 2.65 4.60 3.45 6.69

% change (week) -20.00 -16.40 -13.86 -11.54 -11.39

52-week low 0.12 1.73 3.57 3.40 1.15

Bottom 5 POLIMEXMS PBG KGHM PGE TPSA

Closing 3.43 192.20 163.50 22.43 16.63

% change (week) -3.92 -3.85 -1.21 -0.97 -0.72

52-week high 5.29 252.00 188.90 23.97 18.65

52-week low 3.33 192.20 88.20 19.70 14.10

52-week high 2.30 3.25 8.90 5.13 7.78

Currency report

Markets under Libya’s shadow

Other indices mWIG40

2,807.48 (February 24 closure)

sWIG80

12,658.03 (February 24 closure)

Kamil Cisowski, X-Trade Brokers Dom Maklerski SA

24.02

23.02

22.02

21.02

18.02

17.02

16.02

15.02

14.02

11.02

10.02

09.02

08.02

24.02

23.02

22.02

21.02

18.02

17.02

16.02

15.02

14.02

12,500

11.02

2,800

10.02

12,580

09.02

2,830

08.02

12,660

07.02

2,860

04.02

12,740

03.02

2,890

02.02

12,820

01.02

2,920

31.01

12,900

28.01

2,950

07.02

52-week low: 10,980.45

04.02

Change year to February 24: 3.34%

03.02

52-week low: 2,287.76

02.02

52-week high: 12,855.31

Change year to February 24: -0.01%

01.02

Change for the week: -1.23%

31.01

52-week high: 2,904.35

28.01

Change for the week: -1.15%

12 900

NewConnect

57.62 (February 24 closure)

WIG-Banki

6,639.20 (February 24 closure)

SOURCE: WSE

24.02

23.02

22.02

21.02

18.02

17.02

16.02

15.02

14.02

11.02

10.02

09.02

08.02

24.02

23.02

22.02

21.02

18.02

17.02

16.02

15.02

14.02

6,600 11.02

57

10.02

6,680

09.02

58

08.02

6,760

07.02

59

04.02

6,840

03.02

60

02.02

6,920

01.02

61

31.01

7,000

28.01

62

07.02

52-week low: 5,479.10

04.02

Change year to February 24: -4.64%

03.02

52-week low: 54.54

02.02

52-week high: 7,262.73

Change year to February 24: -9.13%

01.02

Change for the week: 0.36%

31.01

52-week high: 64.04

28.01

Change for the week: -0.89%

Company earnings were another important topic for investors, and most companies which broke out their results last week managed to beat expectations.

Oil companies and media stocks outperformed other sectors, with MOL and PGNiG the top picks among those stocks. Crude oil futures were sharply up after the troubles in Libya and investors rushed to buy them.

Construction companies and chemicals were the biggest laggards, but it must be stressed that changes were generally not big. However, PBG negatively affected the construction index as its shares lost five percent after a recent downgrade.

It was a rather quiet week on the WSE, and investors appear unsure where indices will head in coming weeks. ●

The tragic events in Libya last week affected the volatility of commodities, especially oil and gas, and currency markets.

While previous disturbances in several North African countries had brought some uncertainty to markets, their effect was always limited. None of these countries had the ability to push markets like Libya does.

It is the eighth-largest oil producer in OPEC. The nature of the other conflicts was also quite different. What is happening now in Libya can be called a civil war and may result in a complete shutdown of Libyan exports for at least a few months.

Concerns about the situation have affected the Swiss franc and the Japanese yen.

Both of these currencies, seen as safe havens, have

appreciated strongly. The British pound and most of emerging markets currencies have weakened severely.

The biggest surprise is probably the strengthening of the euro. Despite the detrimental effects of Libya’s problems on oil supplies to Spain and Italy, the euro has managed to stay strong. The most important reason is growing expectations of interest rate hikes in Q2.

The z∏oty’s movements were determined by statements made by central bank head Marek Belka. While his previous statements could be construed as previews to a March interest rate hike, his announcement last week questioned the probability of such an event. The z∏oty reacted negatively, testing the z∏.4.00 level against the euro on Friday. ●

currency rates PLN-100JPY 3.5088

3.5366 24.02

25.02

3.4906 23.02

SOURCE: NBP

3.5235

3.4572

22.02

3.4540 3.0

21.02

3.5

18.02

0.0995 25.02

0.0995

4.0

24.02

0.0997

0.0986 23.02

22.02

21.02

0.0985 18.02

3.1296

3.1007 25.02

0.09

0.0985

PLN-RUB

0.11

24.02

3.0773 23.02

3.0924 22.02

21.02

18.02 3.0247

4.6869

4.6337 25.02

2.9

3.0320

PLN-CHF

3.2

24.02

4.6901 23.02

4.7170 22.02

21.02

4.6720 18.02

2.8941

2.8770 25.02

4

4.6633

PLN-GBP

5

24.02

2.8868 23.02

2.9198 22.02

21.02

2.8803 18.02

3.9916

3.9757 25.02

2.5

2.8755

PLN-USD

3.0

24.02

3.9575 23.02

3.9632 22.02

21.02

3.9105 18.02

3.8

3.9295

PLN-EUR

4.0

Lokale talks to Carl Panattoni about the strategic significance of the region

Dipservice will build a sixstorey office building and possibly a skyscraper

17

16

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 re 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 •

Ufficio ready in autumn Euro-Invest, a subsidiary of Kulczyk Holding, has announced that work on its Ufficio Primo renovation project is scheduled to be completed this autumn.

The cost of modernization work is estimated at €16 million (about z∏.63 million).

According to Euro-Invest, this amount exceeds twice the cost of building a new facility of this type.

However, the firm is working to preserve the building’s historical architecture. The five-storey facility will offer 6,000 sqm of leasable office space and conference space underground. ●

In this issue Immobel’s debut . . . . . . . . . . . .15 Ronson’s big plans . . . . . . . . . . .15 Tesco in Kabaty . . . . . . . . . . . . .16 Dipservice buildings . . . . . . . . .16 Carl Panattoni interview . . . . .17 Blue Center work launched . .18 Unibep’s Grzybowska deal . . .18 Property-related stocks . . . . . .18

Immobel enters the Polish market The Belgian developer has bought two projects and plans more Belgian real estate developer Immobel has officially debuted on the Polish real estate market through the acquisition of two commercial projects. It purchased the special purpose vehicles responsible for renovating the CEDET and Okràglak buildings, located in Warsaw and Poznaƒ respectively, from Centrum Development & Investments (CDI).

Immobel and CDI will work together on CEDET and Okràglak. Both firms are controlled by Luxembourgbased investor Eastbridge Group, as is retailer Empik Media & Fashion (EM&F).

The value of the transaction was not revealed.

CEDET is a retail-office

The renovation of Okràglak is scheduled to start in March complex located on the corner of Al. Jerozolimskie and

ul. Bracka in central Warsaw.

It is best-known for its

longterm tenant, toy retailer Smyk (a brand owned by

EM&F) and its space is estimated at 20,000 sqm.

For its part, the 7,600 sqm Okràglak is an iconic, cylindrical building in downtown Poznaƒ designed by 20th century architect Marek Leykam. According to Anna Rudnicka-Sipay∏∏o of Advanced PR, work on Okràglak will start in March and is expected to be completed within 14 months. The general contractor on the project will be Polish company Elektrobudowa.

CEDET’s renovation is planned to begin in Q1 2011, although Immobel is still waiting for certain documents to be approved before work can start.

According to the sales agreement, Immobel and CDI will also partner on the realization of future projects in Poland.

Katarzyna Piasecka

New projects

Ronson’s lucky seven The Warsaw-based developer has announced new housing projects and a commercial scheme Ronson Development will launch at least seven new schemes across Poland this year, bringing an estimated 900 apartments to the market.

In so doing, the developer expects to double its sales in 2011, potentially moving more than 500 units.

In the following years, Ronson hopes to be able to sell from 800-1,000 units annually.

“The complete list of projects which we are working on at the moment features as many as 12 items, the majority of which we should be able to launch by the end of the year.

This will allow us to considerably increase the scope of our operations and boost the recognizability of our brand in new markets,” Andrzej Gutowski, sales and marketing director at Ronson Development, said in a statement.

On Warsaw’s ul. Jana Kazimierza, Ronson will be involved in a project in which a subsidiary has bought a 58 percent stake. The scheme will be realized in partnership with the seller.

Other developments in the capital will include Magellan in Mokotów and new phases of Verdis and Sakura in Wola and Mokotów, respectively.

Construction has just launched on Gemini II in Ursynów and, just outside Warsaw in Falenty, the developer is planning single-family houses.

In Poznaƒ, Ronson will build a 238-unit project in the Je˝yce district and in Tulce, outside the city, it will launch the first phase of a scheme involving a total of approximately 250 apartments.

Sales in Ronson’s first Szczecin project will launch soon, and in Wroc∏aw the company wants to build another phase of Impressio as well as two completely new schemes. One of these, located on the city’s ul. Na Grobli, will mix hotel and office functions, marking the company’s first venture into the commercial property market.

Ronson Development has not revealed the value of the investments scheduled for launch in 2011.

Adam Zdrodowski

COURTESY OF NBS COMMUNICATIONS

Rents in the world’s most important office markets rose last year, a trend that was also seen in Poland, according to the latest “Office Space Across the World” report

by Cushman & Wakefield.

Hong Kong’s CBD, London’s West End and Tokyo’s CBD were the three most expensive office locations in 2010.

Overall, Poland’s national market ranked 27th among 68 countries, up from 30th a year earlier.

Office rents in the Polish capital’s CBD market rose by approximately 11% in 2010.

Commercial

COURTESY OF CDI

Office rents rising

FEBRUARY 28 – MARCH 6, 2011, LI 16/08

Work on Gemini II has already started

Warsaw Business Journal presents Real Estate weekly newsletter • Know about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions • Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate To subscribe: e-mail subscribe@wbj.pl c +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription or call

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Budimex touts 2010 sales Developer Budimex NieruchomoÊci sold almost 1,000 units last year, a level that was in line with the company’s plans. It launched a total of five new developments in 2010. The firm predicts 2011 will be equally good and plans to launch a number of new investments this year, the details of which it has not yet revealed. The firm has to date delivered more than 6,000 units in the three cities in which it is present: Warsaw, Kraków and Poznaƒ

Unibep’s green deal Stock-listed Polish real estate firm Unibep will serve as general contractor on the second part of the Zielony ˚oliborz (Green ˚oliborz) housing estate in Warsaw. Unibep will earn z∏.68.8 million in the deal. The firm will erect the stage C building of the Zielony ˚oliborz project, which comprises more than 48,000 sqm.

The investment is scheduled to be completed in 2012 and will comprise four buildings. ●

LOKALE IMMOBILIA – REAL ESTATE

FEBRUARY 28 – MARCH 6, 2011

Office space

Dipservice building offices on ul. Foksal The state-owned firm may also erect a 150meter skyscraper in Warsaw Real estate leasing company Dipservice plans to build a sixstorey office building at ul. Foksal 10A in Warsaw. The location is currently occupied by a restaurant called The Mexican.

The as-yet-unnamed building will offer more than 2,500 sqm of leasable office space and about 500 sqm of retail space on the ground floor.

Work on the investment is scheduled to start in Q2 and finish at the end of 2012.

The cost of the investment will amount to around z∏.22 million, according to a repre-

sentative of the firm.

Architectural studio Juvenes Projekt is responsible for the building’s design, with architect S∏awomir Stankiewicz leading the work. Its architecture is intended to echo the style of the 1920s, yet fit in with the local landscape.

“Foksal is the city’s heart, a street where the aristocratic character of old apartment houses and palaces has been preserved. … Knowing this, we will do our best to assure the best standards of our office investment here,” Pawe∏ Krzemieƒ, chairman of Dipservice, said in a statement.

Dipservice’s portfolio includes a total of 130,000 sqm of office space in Warsaw. The

COURTESY OF DIPSERVICE

16

The project will offer over 2,500 sqm of leasable office space company is currently owned by the state, but privatization is expected at an as-yet unspecified date in the future.

According to some sources, Dipservice also plans to invest

in a 150-meter skyscraper on ul. Âwi´tokrzyska in the future.

This building would offer about 30,000 sqm of office space.

However, since the firm has just begun the process of

acquiring administrative permits, it has been suggested that it will not launch work on the building until after the privatization process takes place.

Katarzyna Piasecka

Tesco to transform Kabaty store into shopping center Retailer Tesco, which owns a hypermarket in the Kabaty neighborhood of Warsaw’s Ursynów district, is planning to replace the almost 12-yearold facility with a modern shopping mall within the next two years. The company intends to apply for a building permit for the scheme

later this year and hopes to open the new property in 2013.

Tesco first aired its plans to build at the intersection of AL. KEN and ul. Wàwozowa in Kabaty a few years ago.

However, the original concept also envisioned the delivery of office and residen-

tial space and was deemed too large for the location by the district and city authorities. A new zoning plan adopted in 2008 made the investment impossible.

Tesco has now presented a revised, more modest vision of the project. The design of the mall, which has been furnished

by the MOFO Architekci studio, calls for a nine-floor building with 45,000 sqm of GLA. The area is expected to be occupied by more than 100 tenants, including a Tesco hypermarket and a multiscreen cinema.

In 2009, a Jones Lang LaSalle report on the Warsaw

property market mentioned Kabaty, along with the capital’s Bia∏o∏´ka, Bielany and Wilanów districts, as a location in which there is still room for a large retail project.

Tesco has not revealed the value of the planned investment.

Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

FEBRUARY 28 – MARCH 6, 2011

www.wbj.pl

Industrial development

Lokale Immobilia talks to Carl Panattoni, founder, owner and president of Panattoni Development Company, about his firm’s experience in Poland and the CEE region, and his CEEQA Lifetime Achievement Award Adam Zdrodowski: Panattoni has gained a strong presence in Central and Eastern Europe in recent years. How important is the region to you as a global provider of logistics space?

Carl Panattoni: It is of critical importance. I can’t think of any logistics center in which we develop that is more meaningful. CEE is the hub of both existing and future networks.

I’d put it at the top now, and in the foreseeable years to come.

Are the CEE industrial markets “mature?”

Yes, I do consider the region to be “core” already, because of the locations it serves. Since the market is already mature, growth will be at a steady pace, rather than a dramatic rise.

The overall potential, however, is enormous. It’s the best of both worlds: maturity and growth. Over the next five years, I believe we will do more development in the CEE than in any other region in the world.

Panattoni has recently announced plans to enter the Polish retail sector. Is this something the company is doing in other countries as well? What is the rationale behind the move and which kinds of retail projects are you going to focus on?

We have experience in the retail property sector in other countries, especially in the US, but also in Italy.

In Poland, after a couple years of dynamic development in the industrial market, we have reached a point where our experience, resources and tenant base allow us to enter a new [but] similar real estate market.

This is similar [to industrial development] in the types of locations – outskirts of cities – as well as the type of clients.

We will be initially focusing on retail parks with two to three tenants. We hope that, in the long-term, our operations in both segments can benefit mutually.

What are some of your investment plans when it comes to the industrial market in Poland?

We own a significant portfolio in all core regions in Poland and therefore our initial goal is to dedicate our time and resources to expanding these locations. At all times we are keen to pursue new BTS opportunities.

What’s more, we will consider selectively building speculative inventory in areas with low vacancy rates.

Congratulations, by the way, on your CEEQA Lifetime Achievement Award. How important is this distinction to you?

For 30 years, I’ve devoted my career to establishing and growing this company. Expanding it from a single asset to operations throughout North America and into Europe has been a very rewarding experience.

To see this hard work and integrity acknowledged by CEEQA makes this award extraordinarily satisfying. It is an honor that I did not expect. ●

COURTESY OF KONKRET PR

Carl Panattoni: CEE boasts maturity and growth

The CEE region is already “core,” says Carl Panattoni Logistics statistics Space delivered and leased (in sqm) by Panattoni in Poland, 2005-2010 600,000 Delivered 500,000 Leased 400,000 300,000 200,000 100,000 0

WBJ is a media partner of the CEEQA event

2005

2006

2007

2008

2009

2010

Source: Panattoni Europe

17

PM Group in Âwidnica Engineering and architectural firm PM Group has furnished a concept design for Axle & Manufacturing. The latter firm is investing in a brownfield project in Âwidnica, Lower Silesia voivodship. PM Group has provided a feasibility study, due diligence analysis and design for the adaptation of industrial space and office buildings vacated

by Remy Automotive Poland, which closed its Âwidnica factory in 2008.

Platinum loan deal Atlas Estates and Raiffeisen Bank have reached an agreement concerning a 2008 loan for the developer’s Platinum Towers project in Warsaw. According to the refinancing deal, Atlas Estates is to repay a z∏.116 million loan by the end of March 2012. The complex comprises two 22-storey high-rise buildings with a total of 396 apartments. Atlas Estates is also planning a third tower, with 39,000 sqm of office space. ●

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Cersanit, Opoczno in Echo A new showroom for Cersanit and Opoczno, providers of ceramic tiles and other interior design products, will take up 600 sqm of space in the Galeria Echo shopping center in Kielce. Echo Investment is currently expanding the mall and the new section is scheduled to open in August. It will comprise some 70,000 sqm of GLA.

New Silesia warehouse leases Damco Poland, Salus International and Plastic Omnium recently signed lease agreements for warehouse space in SIlesia. Damco Poland has leased 1,763 sqm in the Alliance Silesia Logistics Center in Czeladê. Salus International has taken up 1,810 sqm of warehouse and office space at the Silesian Logistics Centre in Sosnowiec. Plastic Omnium has joined Diamond Business Park in Gliwice. ●

FEBRUARY 28 – MARCH 6, 2011

Retail

Blue Center construction to launch soon ˚yrardów should get its 5,500-sqm shopping center by Q2 2012 ˚yrardów Investment has appointed Erbud as the general contractor of its Blue Center shopping center in ˚yrardów, Mazowieckie voivodship. Construction on the project is expected to launch at the beginning of March and finish in April 2012.

“According to the agreement, Erbud is to start work on March 2, 2011,” Piotr Kudlek, project manager at BOIG Project Management, said in a statement.

BOIG Property Consulting, part of the Blue Ocean Investment Group, is serving as Blue Center’s leasing agent.

The mall will host some 25 stores, service points and restaurants Mr Kudlek added that Erbud would be responsible for the execution of compre-

hensive construction services, including groundwork, the delivery of foundations, con-

nections to utilities and a two-floor building, finishing work and the provision of

Unibep-Pekaes deal finalized Development and construction company Unibep has acquired perpetual usufruct rights to 2,248 sqm of land located on Warsaw’s ul. Grzybowska, along with the design of an office building which is to be built on the plot. Inwestycja Grzybowska, a subsidiary of transport, forwarding and logistics group Pekaes, was the seller.

access roads and parking space.

Located on ˚yrardów’s ul. 1 Maja, Blue Center has been designed by the Kraków-based “Vide Studio” Wojciech Kurzak architectural firm . The design envisions a modernist building employing modern finishing materials.

The project will comprise approximately 5,500 sqm of space, including 3,800 sqm of GLA, which will be occupied by some 25 stores, points of service and restaurants.

Already secured tenants of the scheme include grocer Polomarket, footwear retailer CCC, pharmacy Apteka pod Ró˝à and electronics retailer RTV Euro AGD.

COURTESY OF BOIG MARKETING

18

The two entities signed a preliminary agreement concerning the deal in December; the transaction could be finalized only after Warsaw City Hall failed to exercise its preemption rights to the property in question.

The Grzybowska 81 project, which will be located opposite the capital’s Warsaw

Get an Insider’s glimpse at all that Warsaw has to offer with the Warsaw Insider!

Subscribe to the Insider! Contact t t kwilinski@valkea.com k ili ki lk

Unibep's stock price on the Warsaw Stock Exchange, March 2010 to February 2011* (in z∏.)

10 *on or around the 23rd of the month

9 8 7 6 zł.

Mar

Apr

May

June

July

Aug

Sept

Adam Zdrodowski

Oct

Nov

Dec

Jan

Feb

Source: Warsaw Stock Exchange

Property-related stocks Security

Closing price on Feb 24

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

BUDIMEX

94.00

-2.08

77.50

106.10

19.44

25,530,098

2,399.83

CELTIC

20.80

-8.17

17.43

60.55

N/A

34,068,252

708.62

DOMDEV

46.10

-2.43

38.52

61.00

-0.86

24,560,222

1,132.23

4.65

0.65

3.86

5.40

18.62

420,000,000

1,953.00

158.00

-0.63

155.00

188.40

-5.84

4,747,608

750.12

ENERGOPLD

3.80

-0.78

3.57

4.50

-12.84

70,972,001

269.69

ERBUD

48.00

-2.99

47.00

61.00

-6.80

12,602,711

604.93

GANT

15.99

-2.26

15.69

26.00

-14.03

20,499,953

327.79

GTC

21.15

1.20

20.75

25.00

-0.66

219,372,990

4,639.74

ELBUDOWA

• top shopping reviews and listings • monthly calendar of parties, eventss and exhibitions • latest art, design, fashion and beauty trends • hotel, spa and fitness club reviews • up-to-the-minute resto, bar, cafe and club reviews

Winter strength

Rising Museum, will provide almost 10,000 sqm of usable space. Unibep-owned Unidevelopment will be the developer of the scheme, while Unibep itself will be the general contractor of the facility.

Construction is scheduled to launch in April and finish in Q4 2012.

ECHO

Warsaw’s most popular Englishllanguage lifestyle lif t l magazine i ffeatures: t :

Adam Zdrodowski

HBPOLSKA

2.65

-2.57

2.54

3.90

-27.60

210,558,445

557.98

JWCONSTR

14.20

-4.63

11.40

18.69

18.63

54,073,280

767.84

LCCORP

1.69

5.62

1.41

1.73

11.92

447,558,311

756.37

MARVIPOL

9.43

0.43

8.83

22.31

-42.50

36,923,400

348.19

MIRBUD

4.42

-6.95

2.71

4.75

51.89

75,000,000

331.50

MOSTALWAR

47.40

-1.17

46.91

77.00

-29.25

20,000,000

948.00

MOSTALZAB

2.83

-4.07

2.63

4.84

-32.46

149,130,538

422.04

ORCOGROUP

32.45

0.62

19.00

34.20

14.38

14,053,866

456.05

PBG

192.20

-3.85

192.20

252.00

-2.78

14,295,000

2,747.50

PLAZACNTR

3.91

-4.63

3.91

6.39

-35.69

292,647,720

1,144.25

POLAQUA

19.78

3.56

16.00

22.50

22.10

27,500,100

543.95

POLIMEXMS

3.43

-3.92

3.33

5.29

-15.72

521,035,327

1,787.15

POLNORD

31.35

-1.42

30.50

44.00

-2.49

22,242,031

697.29

RANKPROGR

10.20

2.00

9.59

10.96

N/A

37,145,050

378.88

ROBYG

1.83

-0.54

1.70

1.94

N/A

257,390,000

471.02

RONSON

1.40

0.00

1.36

2.10

-9.68

272,360,000

381.30

TRAKCJA

3.49

-9.35

3.49

4.97

-15.29

160,105,480

558.77

ULMA

83.20

2.72

70.00

86.20

7.35

5,255,632

437.27

UNIBEP

9.00

-4.66

6.43

10.30

39.53

33,927,184

305.34

WARIMPEX

10.35

-2.36

7.64

10.85

25.45

54,000,000

558.90

ZUE

14.00

2.19

13.59

15.14

N/A

22,000,000

308.00

BUSINESS ENVIRONMENT

FEBRUARY 28 – MARCH 6, 2011

www.wbj.pl

19

Labor market

who’s news?

Unemployment jumps in January Is the government’s employment policy a waste of money?

Unemployment in January this year grew to 13 percent from 12.3 percent in December 2010, Poland’s Central Statistical Office revealed last week.

Commenting on the news, Deputy Labor Minister Czes∏awa Ostrowska told journalists that unemployment for February would probably remain close to the January figure.

“There are no big bankruptcies. Also, I do not expect a huge rise in the number of unemployed,” she said. “Beginning with March, the unemployment rate will start to fall seasonally.”

Economists warn, however,

has been allocated to fight unemployment. However, it appears that there is also an economic justification for cutting spending. Recent research shows that state intervention in the labor market is a waste of money and that numerous

that the government’s current employment policy is ineffective. Last year, it spent almost z∏.7 billion on training programs, internships and grants for the unemployed.

This year, due to budget constraints, only z∏.3.2 billion

On the rise again Unemployment rate (in percent), Jan 2010 to Jan 2011 14

13

12

11

%

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec Jan 2011

training programs and courses organized for the unemployed yield no results. Indeed, a report by the Ministry of Regional Development stated that both the trained and untrained unemployed need almost the same amount of time to find a job, Puls Biznesu wrote.

Surprisingly, the average time taken to find a job by those who had participated in special training programs was a month longer than for those who had not.

According to former Economy Minister Jerzy Hausner, the main reason for this ineffectiveness is that the politicians responsible for employment policy lack the right skills themAlexander Hayes, selves.

Gareth Price

Source: Central Statistical Office

Greenhouse-gas emissions

The cost of going green Poland could cut a third of its emissions by 2030, says the World Bank A “very ambitious” set of measures presented last week by the World Bank would enable Poland to cut its greenhouse-gas emissions levels significantly over the next 20 years, but would require significant sacrifices.

According to new figures from the World Bank, transitioning to a low-emissions economy would involve a GDP

reduction of one percent per year and around 140,000 job cuts annually through 2030, with losses peaking in 2020.

Erika Jorgensen, lead author of the report, described these losses as modest. But Beata Jaczewska, head of Poland’s the Department of European Affairs at Economy Ministry, was more cautious.

“One percent of GDP is a lot, and the government considers studies such as this one as only a basis for discussion,” she commented upon the release of the report.

Indeed, the World Bank projects that the impact of its suggested reforms on Poland’s GDP would be more than twice as high as for the rest of the EU, with emission-intensive sectors bearing the heaviest burden. The World Bank’s models also forecast a 20 percent rise in Polish electricity prices, which is also much higher than in the rest of the EU. Interestingly, Poland’s coaldependent energy sector would not necessarily have the toughest time adapting, according to the report. Trans-

port is currently the sector with the fastest growing emissions in Poland, yet it already applies most of the available technological solutions.

This leaves only companies’ and citizens’ attitudes left to change. And although it might not appear very costintensive, change in this area is not free and is very complicated to implement, warned Ms Jorgensen.

“It will not be easy,” admitted Ms Jaczewska. “We have to build a social consensus over these trends.” Alice Trudelle

Bart Buyse has become the general director of Lufthansa in Poland, responsible for sales and marketing of Lufthansa, Austrian Airlines and SWISS. Mr Buyse began his career with Lufthansa in the firm’s sales department, later working at its European headquarters in London. In 2008 he was stationed in St. Petersburg as general manager for Russia regions. Mr Buyse is fluent in English, French, German and Dutch. His hobbies include travel, interesting lectures and jogging.

Janusz Gaudnik has been made general director of pharmaceuticals firm Zentiva PL. He joins the firm from Servier, where he had worked since 1994. During his time at Servier, Mr Gaudnik held a variety of posts, including national sales manager and deputy regional operation manager responsible for the CEE region. Since 2006 he has held GM posts, first in Slovakia and later in Ireland. Mr Gaudnik is a graduate of the Medical University of Silesia in Katowice and the Warsaw School of Economics.

Dominika Jędrak has joined Colliers International, taking up the post of director within the research and consulting department.

She will be responsible for the operational work of the department, focusing on consultancy services for the office, retail, industrial and hospitality sectors.

Ms J´drak joins the firm from Cushman & Wakefield, where she had been employed for over 10 years, most recently as a market analyst specializing in the CEE market. She is a graduate of the Wy˝sza Szko∏a Hotelarstwa, Gastronomii i Turystyki in Warsaw and is a fluent English speaker.

Sebastian Mikosz has been appointed a senior advisor at Societe Generale Corporate & Investment Banking, where he will help the bank to define its strategy for development in Poland.

Mr Mikosz most recently held the post of CEO at Lot Polish Airlines. In the past he was a director with Deloitte Business Consulting’s Warsaw branch, vice president of the Polish Information and Foreign Investment Agency, and managing director of French Chamber of Commerce and Industry in Poland. Mr Mikosz is a graduate of the Paris Institute of Political Studies. ●

If your company has recently appointed any new senior managers, we’d like to know about it.

Please send submissions to: appointments@wbj.pl

Legal News Contact: Miros∏aw Stefanik ms@pnplaw.pl

Finance Ministry shocks with tax interpretation fees The Finance Ministry has published draft changes to the Tax Ordinance Act which could prove costly for entrepreneurs. These changes indicate the finance minister intends to diversify fees for interpretations of tax provisions.

At present, applicants have to pay a z∏.40 fee for an individual tax interpretation. In accordance with the new proposal, those taxpayers under the jurisdiction of “big tax offices” will have to pay as much as z∏.1,000.

Big tax offices are responsible for companies engaged in specific activities (like banking), companies with high revenues and those with links to foreign companies.

The change will be significant for foreign entrepreneurs, since all branches or representative offices of foreign enterprises as well as Polish residents managed by nonresidents are subject to big tax offices. Just to remind you: being resident and holding as little as five percent of votes at a compa-

ny’s shareholders’ meeting is all that is necessary for the company to be “embraced” by a big tax office.

Changes to CEIDG system In connection with the launch of the Central Records and Information on Business Activity (CEIDG), intended for July 1, 2011, the government has accepted several solutions which are to improve the database.

The CEIDG is a centralized database of information on entrepreneurs which will make it possible to register individual entrepreneurs and to make information on entrepreneurs and other entities available to anyone who might be interested via an online search engine.

Among other things, the changes accepted by the government include the possibility to add statements concerning the choice of PIT taxation form to applications to register in the CEIDG system. At present, entrepreneurs may only file applications for registration in municipal records of business activity with the appro-

priate municipal office. At the same time, a separate application regarding choice of tax form has to be filed with a relevant tax office.

Sejm changes international relations provisions On February 4, 2011, the Sejm accepted the Law on International Private Law, which is to replace a Law of 1965 of the same title.

The law is significant for international relations, both business and non-professional (e.g. marital, parental, etc.), as it settles the question of which law should apply in case a legal situation concerns more than one country.

Due to the fact that numerous relations have been covered by EU legislation, the law is mainly applicable to relations between Polish entities and entities outside of the EU. However, several issues which are not covered by EU legislation so far (e.g. inheritance) will be subject to the new law in cases involving entities within the EU. The law has been sent to the Senate, which may propose amendments.

Stricter provisions on gambling The Sejm has started working on a new

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

amendment to the Act on Gambling Games. The intent behind the changes is to clearly prohibit the organization of and participation in online gambling.

The conditions of slot machine usage will also be subject to supervision. In addition, a guest registration system will be introduced to gambling establishments, including an audiovisual control system to be used in casinos.

Further changes in e-invoices An amendment to provisions on e-invoices is currently undergoing debate in the Sejm.

New provisions will make it possible to send e-invoices from IT systems and to make them available via systems based on online technologies so that they may be downloaded directly by their recipients.

This will be possible to send and make einvoices available not only in electronic form via a network, but also using physical IT data carriers (e.g. CDs, DVDs, hard discs, flash memory drives, etc.). Entrepreneurs will be able to implement their own system of electronic invoicing or to outsource implementation and operation of such a system to a third party. ●

20

THE LIST

www.wbj.pl

FEBRUARY 28 – MARCH 6, 2011

IT & Telecoms

Computer Software Producers Revenue from own software (z∏. mln)

Total revenue (z∏. mln)

Software produced (sectors)

Main products

Operating systems used for software production

Software languages used

2009 / 2008 / 2007

Asseco Poland SA ul. Olchowa 14, 35-322 Rzeszów 1 17 888-5555/17 888-5550 info@asseco.pl www.asseco.pl

643.0 528.5 233.4

946.4 929.2 443.5

Banking and finance; capital def3000; PROMAK; Serat2; markets; insurance; public Asseco FAMS; administration; business; energy; KSI ZUS;eBankart telecommunications

Oracle Database; Oracle Fusion Middleware; Oracle EBusiness Suite; Oracle PeopleSoft Enterprise; Oracle Exadata; Oracle Siebel; Oracle JD Edwards; Oracle Enterprise Manager

Windows: NT/2000; XP; Linux; Unix

✓ ✓

E-Plus Mobilfunk; PGNiG; Bank BPH; NBP; MSWiA; PTC; Alior Bank; VPC; ING Bank Âlàski; Pekao; Tesco; ARR; CPI MSWiA; JetBlue; T-Moblie; Auchan; Vistream

WND WND 1991

Janusz Filipiak - 32.5%, El˝bieta Filipiak - 10.5%; BZ WBK AIB Asset Management - 34.2% None

TETA Constellation

Windows

.net

✓ ✓

Wytwórnia Wyrobów Papierowych Worwo; ZINO; Eurocast

120 280 1987

None UNIT4 - 100%

Impuls 5; mHR; Impuls BI

AIX; Solaris; Win 2003/8; Linux

Borland Delphi 2006; Microsoft ASP; .net; Crystal Reports

✓ -

Dom Maklerski BZ WBK; Famur; ZM Soko∏ów Jaros∏aw

48 243 1988

WND

ActionScript (1,2 and 3); PHP; Java; Java Script; C/C++; Objective-c

WND WND

Media Markt; Empik; IXION; P.W.D. Apex; Harpo; Educarium; Moje bambino; DHO; Edusklep; Merlin; Komlogo

39 342 1990

None Werner Söderström Osakeyhtiö - 100%

Waldemar Kucharski

SAS Business Intelligence Server; SAS Data Integration Server; SAS Analytics; SAS Enterprise Miner; SAS Linux; Solaris; AIX; ANSI C; C++; Java; .net Enterprise Risk Management; Windows; HP-UX; Z/OS SAS Financial Intelligence; SAS Customer Intelligence; SAS Strategic Performance Management

WND WND

WND

WND 187 1992

None SAS Institute - 100%

Alicja Wiecka

Teta SA Al. WiÊniowa 1, 53-137 Wroc∏aw 4 71 323-4000/71 323-4001 kontakt@teta.com.pl www.teta.com.pl

85.4 79.9 51.7

104.1 93.2 63.4

ERP; BI; CRM; commercial, manufacturing and services

Biuro Projektowania Systemów Cyfrowych SA ul. Ga∏eczki 61, 41-506 Chorzów 5 32 349-3500/32 349-3601 bpsc@bpsc.com.pl www.bpsc.com.pl

63.7 38.4 19.7

63.7 38.4 37.0

Food; trade/distribution; furniture; construction; utilities; clothes; motor; science and education; transport

18.7 108.9 57.8

Educational programs for language learning; multimedia; dictionaries and manuals; Series Europlus+; eduROM software and solutions for series; eduSensus series; children with special educational Nauczyciel.pl portal; Windows 2000; XP; Vista; needs; internet portals dedicated eLearning courses; Windows 7; MAC 10.2 and (education and language); courses in professional higher; Linux platforms for eLearning; training; development; ICT training; managerial; dedicated courses; multimedia equipment applications developed on request

Macrologic SA Al. Armii Krajowej 80, 35-307 Rzeszów 8 22 511-8115/22 511-8116 office@macrologic.pl www.macrologic.pl

52.5 42.8 42.0

47.7 45.3 38.4

73.7 60.0 58.6

54.4 51.4 43.1

Egeria; Comarch Computer systems for industry, Comarch ECOD; Comarch ALTUM; utilities, retail, telecom, media, Comarch MobileID; Comarch government, financial institutions Asset Management; and banks; MVNO; B2B and Comarch Rating; Comarch B2C; E and CRM systems; ERP; OSS Suite; Comarch Self BSS; OSS; Loyalty; BI Care

All sectors of the economy (banking; insurance; telecommunications; energy; industry; trade; logistics; public sector)

None Oracle Corporation - 100%

President

WND

729.0 701.0 581.0

SAS Institute Sp. z o.o. ul. Gdaƒska 27/31, 01-633 Warsaw 7 22 560-4600/22 560-4604 polska@spl.sas.com www.sas.com/poland

3,500 250 1992

Adam Góral

WND

168.0 213.0 146.0

ydpmm@ydp.com.pl www.ydp.com.pl

Adam Góral - 10.4%; own auctions - 7%; AVIVA OFE BZWBK - 9.6%; ING OFE 7.2%; OFE PZU Z∏ota Jesieƒ 5.5%; other shareholders 60.2% None

✓ ✓

ComArch SA Al. Jana Paw∏a II 39A, 31-864 Kraków 3 12 646-1000/12 646-1100 info@comarch.com www.comarch.com

63.1 128.4 81.8

WND 3,066 1991

Java

454.0 451.0 422.0

Young Digital Planet SA ul. S∏owackiego 175, 80-298 Gdaƒsk

✓ ✓

PKO BP; Bank Pocztowy; Deutsche Bank PBC; Bank Gospodarki ˚ywnoÊciowej; TP SA; PZU; Warta; Lotos; Poczta Polska; MSWiA

Top local executive / Title

Windows; Linux; Unix

350.0 352.0 325.0

6 58 349-4444/58 349-4411

Ownership: Polish / Foreign

PZU; UFG; PKP Intercity; Allegro-QXL; Empik Media & Fashion; Medana; PGE Elektrownia Turów; Dalkia; Cyfrowy Polsat; Emperia; Konex; Dajar; DnB Nord; Immergas; Orlen; Raiffeisen Bank Polska; Polska Grupa Farmaceutyczna; Sic Lazaro

Oracle Polska Sp. z o.o. ul. Sienna 75, 00-833 Warsaw 2 22 690-8700/22 690-8900 info_pl@oracle.com www.oracle.com/pl

All sectors

C/C++; C#; Java; Delphi; PHP

Selected clients

Number of developers / Total employees / Year founded

Company name Address Tel./Fax E-mail Web page

www.bookoflists.pl

Software: Readymade / Dedicated

Rank

Ranked by revenue from own software sales in 2009

SMEs

Xpertis

WND

WND

✓ ✓

Termetal; Treko Laser; Garbarnia Szczakowa; Agencja Rezerw Materia∏owych

50 312 1986

Bogdan Michalak - 32.5%; W∏odzimierz Napiórkowski 19.9%; Krystyna Napiórkowska - 5.3%; Andrzej Odyniec - 4.4%; Krzysztof Szczypa - 5.6%; Aviva Investors Poland 8.2%; other shareholders 23.2% None

WND

✓ ✓

NBP; BG˚; Pekao; MInistry of Labour and Social Policy; ¸ódê City Hall; MPWiK; University of Silesia

WND 909 1991

Legg Mason Zarzàdzanie Aktywami - 12.5%; Pioneer Pekao Investment Management - 8.6%; ING Towarzystwo Funduszy Inwestycyjnych - 5.9% WND

WND

Andrzej Dopiera∏a President

Janusz Filipiak President

Jerzy Krawczyk President

Ignacy Miedziƒski President

President

Managing Director

Kszysztof Szczypa WND

Sygnity SA Al. Jerozolimskie 180, 02-486 Warsaw 9 22 571-1000/22 571-1001 info@sygnity.pl www.sygnity.pl

42.8 56.8 43.7

361.5 568.7 568.4

WND

Testing applications; ERP Enterprise Integrated Management System; CRM; warehousing data analysis systems; Business Intelligence; logistics systems; processing; archiving and workflow; integrated systems for telecommunications; rail inclusive e-learning; the development of communications systems

IMPAQ Sp. z o.o. ul. 1 Sierpnia 6A, 02-134 Warsaw 10 22 314-6000/22 314-6001 sekretariat@impaq.pl www.impaq.pl

29.7 33.9 WND

30.6 34.7 WND

Banking; insurance; telecom; utilities; retail

WND

Windows; Linux

.net; Java; C#; VB; C++

✓ ✓

NSN; PTC; NCR; Getin

134 192 1993

None IMPAQ Information Management Holding - 100%

Andrzej Kawiƒski

Hogart Sp. z o.o. ul. Gwiaêdzista 19, 01-651 Warsaw 11 22 639-2600/22 639-2605 biuro@hogart.com.pl www.hogart.com.pl

22.0 20.0 20.0

22.0 WND 20.0

Finance; insurance; manufacturing; telecom; pharmaceutical sector; media; services; construction

Oracle JD Edwards; Infor FMS SunSystems; Qlik View

WND

WND

✓ WND

Egis Polska; Geodis Calberson Polska; Wardyƒski i Wspólnicy Kancelaria Prawnicza; ThyssenKrupp; Polskie Ksià˝ki Telefoniczne

15 80 1992

Marcin Penczek - 44.5%; Janusz Fortuna - 44.5% Stijn Lauwers - 11%

Marcin Penczek

Innovation Technology Group SA ul. Wo∏owska 6, 51-116 Wroc∏aw 12 71 797-2666/71 797-2606 itg@itg.pl www.itg.pl

14.9 10.6 15.3

18.9 37.8 22.9

Banking and finance; retail; general business; public sector

WND

Windows 7; Windows XP; Windows Server 2008; Windows Server 2003

C#; Java Script; T-SQL; PL-SQL

✓ ✓

Lukas Bank; Santander Consumer Bank; Raiffeisen Bank; WestLB; Kredyt Bank; Orlen; PWPW; Douglas; JMD; Energia Pro; Volvo; Toshiba; Pol-Aqua

35 166 1991

Probatus Financial Advisers 22.5%; Wies∏aw Frydrych 6%; Pawe∏ Witkiewicz - 8%; Regina Paupa - 13%; IDM 5% WND

Athenasoft Sp. z o.o. ul. Leszczynowa 7, 03-197 Warsaw 13 22 614-3422/22 614-3469 info@ath.pl www.ath.pl

12.4 12.7 11.2

12.8 13.0 11.4

Norma PRO; Norma STANDARD; Norma EXPERT; Buduj z G∏owà; Construction; insurance; finance INTERCENBUD; NieruchomoÊç PRO; Capital; CAD Rysunek

Windows: 7; XP; Vista

C#

✓ -

Kompania Weglowa; Skanska; Hochtief; Warta; PZU; NBP; PKP; Gaz-System; Orlen

18 48 1998

Stanis∏aw Chmielewski 50%, Tadeusz MoÊcicki 50% None

Heuthes Sp. z o.o. ul. Koƒski Jar 8/30, 02-785 Warsaw 14 91 460-8974/91 460-8974 marketing@heuthes.pl www.heuthes.pl

9.6 8.3 8.1

9.6 8.3 8.1

Banking, finance and insurance; SMEs

✓ ✓

Pekao; BG˚; GBW; DnB Nord Polska; MR Bank

30 49 1989

Wojciech Grzybek - 53.8%; Wies∏aw Kawiƒski - 23.1%; Grzegorz Kowalewski 23.1% None

Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for The List was done in November 2010. Number of employees and ownership structure are as of October 2010. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

ISOF; GRYFCARD; MULTICENTAUR; GRYFBANK; ISOFWORKFLOW; CRM; DMS; HOME/CORPORATE BANKING

Linux; Windows; i5 OS (OS 400)

HDB

Norbert Biedrzycki President

General Director

President

Wies∏aw Frydrych President

Stanis∏aw Chmielewski; Tadeusz MoÊcicki President; Vice President

Wojciech Grzybek President

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

The official launch of Book of Lists 2011

Rankings revealed • Top companies recognized • WBJ Awards handed out Warsaw, March 3rd, 2011

Order now!

Please contact us at +48 22 639 85 68 or kwilinski@valkea.com

Launch Event Partners:

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22

ARTS & CULTURE

www.wbj.pl

FEBRUARY 28 – MARCH 6, 2011

Art Event

Fresh ideas

Concert

Dark yet uplifting drawn comparisons to Joy Division, Editors and Interpol on account of a sound that has been described as “dark yet uplifting.” Support comes courtesy of Crocodiles. ●

With a CV that includes live appearances on Channel 4,

BBC Radio and the Late Show with David Letterman, the White Lies head to Warsaw to play tunes from “Ritual,” their latest album.

Big on the festival scene, the Ealing-based band has

Opera

Jazz

Octaves of tragedy

Aural freedom

“Madame Butterfly” The Polish National Opera at Teatr Wielki March 4, 7 pm The classic tale of a geisha consumed by her love for an American Navy officer. Mariusz Treliƒski’s production about the loss of love and culture has been running at Teatr Wielki for more than 10 seasons. ●

KADETË Jazzownia Liberalna Club March 6, 7:30 pm KADETË is the product of three self-taught musicians and jazz lovers from Warsaw.

Their lack of classical music education is more than made up for through their spontaneous performances and original compositions: a breath of fresh air on the young Polish jazz scene. Their inspiration is a wide range of musical influences, from Coltrane to Faithless and Stevie Wonder. ●

COURTESY OF JAZZOWNIA LIBERALNA

White Lies Klub Stodo∏a March 5, 7 pm

Concert

Glam in the capital We Love Rock: Slade, Smokie & The Sweet Torwar Stadium March 3, 7 pm Seventies rockers Smokie, Slade and The Sweet join forces this March to launch a full-on, tri-pronged attack on your sense of nostalgia. “We Love Rock” brings this trio

of best-selling bands to Warsaw, and with them a collection of their greatest hits.

“Living Next Door to Alice,”

“Ballroom Blitz” and “Oh Carol” are just a few of the oldies still bringing the house down. ●

Some content provided by the Warsaw Insider.

For more information on culture and entertainment in Warsaw this month, pick up the March issue.

Advance Bookings Queens of the Stone Age come to Stodo∏a Club, May 5 Chris de Burgh comes to Warsaw’s Torwar Stadium on May 16 Robin Gibb brings back the Bee Gees magic on May 29 Katie Melua hits Sala Kongresowa on May 31

Rod Stewart will be performing in Toruƒ on June 11 Bobby McFerrin on June 16 and Bonny Tyler on June 30 – both at Sala Kongresowa Jeff Beck performs as part of Warsaw Summer Jazz Days on June 21 at Sala Kongresowa

Art Fresh Festival is directed at expats as well as general art enthusiasts and forms an introduction and overview of contemporary Polish artworks. The event is an expansion of an annual concept started many years ago by the community volunteer organization, American Friends in Warsaw, which has teamed up with organizer Janusz Rybak to bring in fresh talent.

The festival takes its inspiration from the types of home-grown art fairs found in suburban America. Here, you can purchase whatever takes your fancy – direct from the artist in question.

Invited artists include graduates and current students from the Warsaw Fine Art Academy, the European Academy of Arts, various Warsaw art associations – including “Frontier of Art” and “Storehouse of Art” – as well as students from Warsaw’s American and British High Schools. Over 70 individuals will exhibit and sell in this year’s festival.

Amidst all the viewing and mingling, those interested can also watch the artists at work. There will be live

demonstrations of how to make a linocut and how to experiment with graphic art.

The kids will also feel at home, with special arts and crafts play-pens (“children’s spots”) set up for their convenience. The festival will feature all manner of art works, from painting to photography; prints and textile

work, as well as pottery, ceramics, sculpture and jewelry. All items are for sale.

A grass-roots art exhibition, this event will have you picking out a bit of the unexpected – at a fraction of gallery prices. ● The festival will run all day until 8:00 pm

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

If you’re planning for a smashing summer, don’t forget the Heineken Open’er, which runs from June 30 to July 3 in Gdynia. Performers include Coldplay, Caribou and Primus. Get tickets now at www.opener.pl, www.ticketpro.pl or www.heineken.pl.

COURTESY OF KRZYSZTOF BORKOWSKI

COURTESY OF STODO∏A

Art Fresh Festival Sheraton Hotel (ground floor) March 6, 12:30 pm

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul.

Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.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 Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl

State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.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 Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl

Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl

Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl

Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl

LAST WORD

FEBRUARY 28 – MARCH 6, 2011

www.wbj.pl

23

Tech Eye

COURTESY OF SHAPEWAYS

Like most people, Techeye derives a great deal of satisfaction from making other adults cry their guts out.

Why, just last week at the local diner, we triumphantly made a waiter squeal like a hormonally imbalanced pig skydiving for the first time.

Served him right too, after he carelessly allowed a whiff of pickle stench to befoul our food.

And then there was the cop who tried to fine us for taking public transportation without a ticket. He was a tough nut to crack, but the tears flowed freely once we pointed out that he had hands like a little girl and was probably a huge disappointment to his parents, friends and most strangers. If you’ve never seen a man taser himself in a fit of despair, we highly recommend it.

Emotional persecution is just one of our many hobbies, however.

Another is designing new items to improve the future of Humanity.

In the old days, this was a laborintensive pastime. First you had to come up with an idea, which involved large quantities of vodka and photos of cute and inspirational pandas.

Once you had an idea, you needed to take precautions so that greedy companies didn’t steal it (like our urinepowered battery concept – damn you Aqua Power System Japan!).

And the final step in the process was inevitable, soul-crushing rejection by some faceless corporate lackey. When that happened, Techeye would go out and make ourself feel better by making someone else cry, at which point the cycle would begin anew.

COURTESY OF MAKERBOT INDUSTRIES

The making and the breaking

Printing a better world Times are changing, though. The rise of the internet – and more recently, 3D printing – has made it possible to improve the world without leaving the comfort of your marmite-encrusted bathrobe.

How’s that? Well, something new is evolving: design and co-creation communities. These are groups, usually centered around a creative platform, which trade ideas and put them into practice. Shapeways and Thingiverse – arguably the most successful communities to appear so far – were both founded in 2008.

The two take significantly different approaches, however. US-based Thingiverse is the more user-driven and nerd-gasmic of the two, having

been created by MakerBot Industries, which sells open-source, “much-assembly-required” 3D printer kits like Thing-O-Matic and CupCake CNC. Community members thus trade designs and advice on how to make them work on their own, homemade printers.

The Netherlands’ Shapeways, meanwhile, is a more centralized, profit-oriented affair. The company allows users to design their own objects and then submit them, but it handles the printing itself. For talented designers looking to earn a return on their work, Shapeways also serves as a marketplace – its shop allows users to sell their wares by adding a markup onto the company’s own costs. Even the firm’s logo embodies this community-meets-capitalism approach, as it contains an everchanging array of user-created objects.

Both approaches to 3D design sharing are naturally limited by the technology itself. On the other hand, 3D printing technology is developing faster than Grandpa Techeye’s nose hair grows, which is to say damned fast. Shapeways, for example, introduced full-color 3D printing and added glass to its repertoire of printing materials just in 2010.

The power of product names This is all seriously fascinating stuff.

So fascinating, that Techeye almost forgot to make fun of the pasty, basement-dwelling nerds who form the heart of these communities. But when people are creating wonderfully queer things like “gyroid magnetic assembly,” “ceiling cat!”, “love gasket – fractal” or “ferret hammock bracket,” it’s easy to get lost in the sheer awesome of it all. And don’t get us started on “fat camp self assembly.”

Those are all examples of design stuff from Thingiverse, by the way. But the products offered by Shapeways, while more polished than things born of DIY printers, boast equally dork-worthy names – “Autobot ring,” “letter opener meat cleaver” and “Color it! Wiggle” are good examples. On the other hand, “Michigan Central Station model paper clip holder” seems pretty dumb at first, but its creator cleverly notes “everyone

knows a stoner that would like one for there [sic] private stash.”

Having spent a good deal of time checking out Thingiverse, Shapeways and other 3D printing efforts, Techeye is getting ready to create our first, world-bettering designs. Perhaps we’ll start with something simple, like a “magnetic meat gasket – ceiling ferret wiggle!”

Yes, that’s exactly what we’ll do.

The other designers’ hot tears of envy will make it all the more satisfying. ● CO UR TE SY

OF

SH AP EW AY S

Ever wanted to design your own “fat camp self assembly”? Let us know: techeye@wbj.pl sare_268x81.ai

22-03-10

13:25:37

éclairage scénique éclairage architectural projets multimédia sonorisation de concerts sonorisation de conférences traduction simultanée systemes de discussion