WBJ #24-25 2013

Last Waltz?

Android enhancement

The latest polls show that the mayor of Warsaw will be recalled

Tech Eye looks at the best apps to boost your smartphone. And most of them are free 23

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VOLUME 19, NUMBER 24-25 • JUNE 24 – JULY 7, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Enter Croatia

REAL ESTATE

COURTESY OF BPI

The Balkan country becomes the 28th EU member state. WBJ looks how it will affect both sides of the equation

• Wola Tarasy • Meridian IPO • Sezam demolition

COURTESY OF UKE

Together to communicate

Warsaw will host the biggest symposium of ICT regulators in July. We talk with UKE president Magdalena Gaj about what it will mean for the booming Polish sector 6

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Book of Lists Gala . . . . . . . . . .10-11 Opinion & Analysis . . . . . . . . . . . .12 Cover Story . . . . . . . . . . . . . . . . . .13 Lokale Immobilia . . . . . . . . . .14-16 The List . . . . . . . . . . . . . . . . . . .18-19 Markets . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

SHUTTERSTOCK

In this issue

Party over

A big BoL

The PM wants to stop financing political parties from the state budget. Unsurprisingly, other politicians reacted angrily 3

WBJ Group launched this year’s edition of the annual Book of Lists publication. See how we celebrated leading firms’ successes 10-11

NEWS

www.wbj.pl

1.8%

Jaros∏aw Kaczyƒski On June 29, much of Poland’s attention will be focused on Silesia, where the country’s two largest political parties – Civic Platform and Law and Justice – will hold conventions. The two bitter rivals will be competing to get their messages out, and both events will shape the future of the parties’ leadership. In the Silesian city of Chorzów, the ruling Civic Platform party will decide upon how voting for party leadership will be conducted. Both national and regional leaders will be elected this year, and the party congress is due to set the date and schedule for the elections. Based on that schedule, it will likely become clear precisely who will run against Prime Minister Donald Tusk for overall party leadership. Currently only Mr Tusk has officially thrown his hat into the ring.

Prime Minister Donald Tusk The candidates won’t be revealed at the congress itself, as the potential rivals are biding their time to see how long they will have to campaign and whether the central or regional elections will be held first. The most likely potential candidates with any realistic chance of beating Mr Tusk include Grzegorz Schetyna, once the PM’s right-hand man, and Jaros∏aw Gowin, who was recently dismissed as minister of justice. Mr Gowin is the leader of a strongly conservative faction within Civic Platform, while Mr Schetyna was demoted two years ago after his name came up in connection with a scandal. Relations between Mr Schetyna and Mr Tusk, which soured after the demotion, have warmed recently, with the former even suggesting that he’s open to close cooper-

ation with the prime minister. Mr Gowin, for his part, has low expectations for any potential run. “I’d be naive to think I wouldn’t be severely defeated in the [party leadership] elections,” he said at recent political debate. However, running for the post would give him a platform to voice his conservative views, and burnish his reputation as a leader, potentially convincing other conservative Civic Platform members to follow him out of the party if he decides to leave and form his own. The Law and Justice party convention, which will take place nearby in Sosnowiec, is unlikely to produce any surprises. The party will elect its own leader, but so far there is only one candidate for the job, current leader Jaros∏aw Kaczyƒski. It is expected that he will run unopposed. Jacek Ciesnowski

is by how much Poland’s industrial production fell year-on-year in May. Month-on-month it fell 0.7%.

52% is the number of Varsovians who are dissatisfied with Warsaw Mayor Hanna Gronkiewicz-Waltz’s performance, according to a survey carried out by TNS OBOP. The mayor will face a recall vote in the coming weeks.

z∏.3,699.67 was the average gross monthly salary in Poland in May, according to statistics office GUS. It rose by 2.3% year-on-year and fell by 3.4% month-on-month.

Quote of the Week “That guy [PM Donald Tusk] has lost his sense of reality … he is practically running around in circles and has no idea what to do next.” Eugeniusz K∏opotek, an MP from the junior coalition partner, Polish People’s Party, on Mr Tusk’s proposal to liquidate state subsidies for political parties.

Figures in focus Gimme shelter Number of positive decisions on asylum applications in selected EU member states, in 2012 25,000

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What economic challenges face the next prime minister of the Czech Republic? Check out the blog by geopolitical analysis firm Stratfor on WBJ.pl this month to find out.

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The European Commission has referred Poland to the European Court of Justice over two issues and rebuked Polish authorities regarding three other issues. The EC accuses Poland of not monitoring GMO cultivation and of regulating gas prices for business consumers, which according to the EC should be determined by supply and demand.

is how much Poland’s national air carrier LOT has requested from the State Treasury in additional public aid. The company received a loan of z∏.400 million from the Treasury in December 2012.

EC takes Poland to court

z∏.381 million

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Poland’s Office for Competition and Consumer Protection has sent the restructuring plan of LOT Polish Airlines to the European Commission. According to the plan, Poland’s national airline will require z∏.381 million of additional public aid. The company received a loan of z∏.400 million from the State Treasury in December 2012.

Party congresses in Silesia

LOT rescue plan sent to EC

Numbers in the News

Prosecutors in the Czech Republic arrested seven people, including Czech Prime Minister Petr Necas’ chief of staff and the current and former heads of military intelligence. They were charged with abuse of power and bribery. Mr Necas was forced to resign as a result of the scandal. His party – the Civic Democratic Party – is proposing Miroslava Nemcova as his replacement.

IN THE SPOTLIGHT

COURTESY OF FLICKR/KPRM

Corruption scandal hits Czech PM

JUNE 24 – JULY 7, 2013

SHUTTERSTOCK

Source: Eurostat

Report blasts private pension funds The Polish Press Agency (PAP) revealed the details of a Finance Ministry report on open pension funds (OFEs). According to PAP, the report finds that transferring part of pension contributions to OFEs increases public debt. As a result of OFE participation in Poland’s pension system, the state may have to raise taxes or increase the amount of pension contributions taken out of people’s paychecks. As of press time, the report had not been officially revealed. Prime Minister Donald Tusk is expected to announce his decision on OFEs after reading the report. ●

Calendar

June/July

Accenture ..........................................................10, 11 Google ......................................................................23 Allianz ......................................................................14 Griffin Group ............................................................15 Alpha Bank ..............................................................16 Heineken ..................................................................22

JUNE 24-26 EUROPEAN FINANCIAL CONGRESS Event:

Location: Web:

This congress, organized by the Gdaƒsk Institute for Market Economics – Gdaƒsk Academy of Banking, provides space for pragmatic debates in business, political and academic circles. This year’s edition will focus on financial security and European integration. Sopot efcongress.com

Location:

Web:

JULY 14 Event:

27-28 SENIOR HOUSING IN POLAND Event:

This conference will address housing issues in the largest growing demographic – senior citizens. The conference will address how demographic, economic and social changes are creating the need for alternative senior

Company index

Location: Web:

housing solutions for the entire senior community. Kraków, City Council Chamber, Pl. Wszystkich Âwi´tych 3-4 seniorhousing.pl

FRANCE NATIONAL DAY (BASTILLE DAY) The celebration of France’s national holiday in Warsaw will feature “French town” on ul. Francuska with a French song festival and a culinary competition, as well as a “July 14 Ball” on ul. Foksal, which will bring together some 1,500 people involved in Polish-French business, politics and culture. Warsaw ccifp.pl

Alpine Bau..................................................................3 Hochtief....................................................................15 Alstom ........................................................................5 InPost ................................................................10, 11 Areva ..........................................................................4 Jones Lang LaSalle ................................................15 Art Norblin ..............................................................14 Juvenes Project ......................................................16 Asseco ......................................................................20 KGHM ......................................................................20 AT&T ..........................................................................6 Konior ......................................................................15 Bank Pekao................................................................6 London & Cambridge Properties ..........................14 Batipont Immobilier ................................................14 LOT Polish Airlines ....................................................2 BBI Development ....................................................16 Maspex Grupa Wadowice ..........................................6 BIG InfoMonitor..................................................10, 11 Meridian Properties ................................................16 Bilfinger ....................................................................3 National Centre for Research and Development 10, 11 BZ WBK................................................................7, 15 Pekao SA..................................................................15 Capital Park ............................................................14 PKO BP ....................................................................15 CBRE ............................................................10, 11, 14 PKP ............................................................................5 CC Group..................................................................16 PwC ....................................................................10, 11 Centrum Development & Investments ..................15 Raiffeisen ................................................................16 CFE Polska ..............................................................14 Roadbridge ................................................................3 Cisco Systems ..........................................................6 Segro ........................................................................14 Citi ............................................................................16 SIAC............................................................................3 City Security ......................................................10, 11 SISK............................................................................3 Credit Agricole Bank Polska ....................................7 Cushman & Wakefield ............................................14 Skanska..............................................................10, 11 Dentons ..............................................................10, 11 Strabag ......................................................................3 Deutsche Bank ........................................................15 T-Mobile ..................................................................21

Correction: The article “HB Reavis gears up for ul. Chmielna offices” published on June 10, 2013 incorrectly stated that developer HB Reavis bought a plot on ul. Chmielna for z∏.1.7 million. The plot actually cost z∏.170 million. WBJ regrets the error.

Echo ........................................................................14 TNS OBOP..............................................................2, 3 Erste Bank ..............................................................16 Toshiba ......................................................................4 Ferrovial ....................................................................3 UBS Real Estate Kapitalanlagegesellschaft mbH ....16 France Telecom ........................................................6 Union Investment ....................................................14 GE Hitachi ..................................................................4 Warsaw Stock Exchange ..................................16, 20 Ghelamco ................................................................14 X-Trade Brokers ......................................................20

NEWS

JUNE 24 – JULY 7, 2013

www.wbj.pl

Politics

PM proposes eliminating party funding from state

Gronkiewicz-Waltz’s goose cooked?

Donald Tusk wants the state to stop funding parties. His coalition partners don’t agree

A political firestorm has resulted from Prime Minister Tusk’s proposal to end state subsidies for political parties Prime Minister Donald Tusk announced mid-June that his ruling Civic Platform party would submit legislation at the end of the month aiming to dismantle the current Polish system of state financing for political parties. Mr Tusk’s statement came after an article in the Polish edition of Newsweek detailing how, during the past three years, his party had spent roughly z∏.250,000 on suits, z∏.200,000 on restaurant bills, z∏.100,000 on wine as well as z∏.6,000 on renting a field on which the prime minister plays soccer – all at taxpayers’ expense.

No mood to change Under Poland’s current system, political parties that gain 3 percent of the vote or more in par-

liamentary elections are financed from the state budget proportionally to the number of votes they received. In 2012, Civic Platform, which has the highest number of MPs, received z∏.47.6 million, while their main rival, Law and Justice, received z∏.47.2 million. Meanwhile, Mr Tusk’s junior coalition partner, the Polish People’s Party, received z∏.11.9 million and is in no mood to change the system. “Civic Platform boys were naughty, they drank, smoked and now all of us are supposed to be responsible for that. Are we rams who will allow ourselves get shaved like sheep?” said Eugeniusz K∏opotek, a Polish People’s Party MP. “Either we start treating each other seriously or maybe it’s time to say goodbye [to the coalition],” he added.

‘Running around in circles’ Mr K∏opotek also said Poles no longer “buy [Donald Tusk’s] PR

tricks.” The junior coalition partner MP stated that the prime minister is “staggering about the place, confused. He is basically running around in circles now and has no clue what to do next.” Earlier in June, reports emerged that Law and Justice had reserved z∏.1.5 million for bodyguards and other security measures for party leader Jaros∏aw Kaczyƒski this year. Joachim Brudziƒski, a Law and Justice MP, said Mr Kaczyƒski, undoubtedly one of Poland’s most controversial politicians, would “be dead by now if not for that protection.” Aside from Civic Platform, all the major political parties in parliament oppose Mr Tusk’s proposal. Jan Bury, spokesperson for the Polish People’s Party, said “changing the rules of the game in the middle of a parliamentary term and after over a decade of the current law functioning well, is akin to an attack on democracy.” Remi Adekoya

Construction

Ambassadors intervene on behalf of road builders Several diplomats have complained that construction firms from their countries aren’t being paid by Poland’s road directorate for the work they’ve done Ambassadors from Austria, France, Germany, Ireland, the Netherlands and Portugal have written a letter to Deputy Prime Minister and Economy Minister Janusz Piechociƒski, intervening on behalf of road construction companies. The ambassadors say they are concerned with how Poland’s General Directorate for National Roads and

Motorways (GDDKiA) has treated construction firms from their countries, claiming the road agency purposely delays payments. According to the letter, GDDKiA owes the companies some z∏.10 billion. Mr Piechociƒski responded by saying that he would meet with the diplomats to discuss these issues as soon as possible, although as of press time no date had been set. When asked about the issue, Prime Minister Donald Tusk said he was “not impressed.” “There is no reason for GDDKiA to make concessions in the face of political pressure,” Mr Tusk said. GDDKiA responded that

foreign companies receive the same treatment as Polish ones, adding that it cannot pay them more than what was agreed upon in their contracts just because the prices of raw materials rose. “Construction firms should take this into account when submitting bids for road construction,” read the directorate’s statement. Firms that have been in dispute with the Polish road agency over payments include Austria’s Strabag and Alpine Bau, a unit of Germany’s Bilfinger, Ireland’s SIAC, SISK and Roadbridge, and a unit of Spain’s Ferrovial. Kamila Wajszczuk, Jacek Ciesnowski

With a recall vote possibly just weeks away, 52 percent of Varsovians think Hanna Gronkiewicz-Waltz, the current mayor of Poland’s capital, is not doing a good job, while 41 percent have a positive opinion of her performance, according to a survey carried out by TNS OBOP. This means Ms Gronkiewicz-Waltz, who is also a deputy leader of the ruling Civic Platform party, is likely to lose the recall vote in which two-thirds of Warsaw’s citizens have declared they will participate. A turnout of at least 400,000 would make the vote legally binding. Of those who do plan to take part in the poll, 64 percent are in favor of dismissing Ms Gronkiewicz-Waltz from office. The initiators of the recall vote have already collected the required number of signatures for the vote to take place. Their petition officially accuses Ms Gronkiewicz-Waltz of cutting transportation funding while implementing the highest prices for public transport in Poland, reducing the city’s spending on education,

COURTESY OF THE WARSAW MAYORS OFFICE

COURTESY OF THE EUROPEAN PARLIAMENT

Most Varsovians say they want their mayor kicked out of office

Hanna Gronkiewicz-Waltz not preparing the capital for the new waste management laws and bringing chaos to city management. Ms GronkiewiczWaltz was first elected mayor of Warsaw in 2006. She was reelected in 2010 but has seen her popularity plunge in recent weeks.

Standing together As could be expected, Prime Minister Donald Tusk stood by his party colleague. “In opposition to the recall’s organizers, I rate Ms Gronkiewicz-Waltz highly. During my international visits I go to European capitals often and I must say there is no other capital in Europe which has so

many investments going on,” Mr Tusk said. He also questioned the sense of organizing the recall vote saying that “everyone will have the right to, in one year’s time, express their opinion in regular local elections.” Local government elections are scheduled to take place in Poland in 2014. It thus seems apparent that in the increasingly likely event Ms Gronkiewicz-Waltz is booted out of office, rather than call snap elections for the vacant mayoral seat, Mr Tusk will appoint an interim administrator to run the city untill the 2014 polls. Remi Adekoya

NEWS

www.wbj.pl

JUNE 24 – JULY 7, 2013

International

Poland and Japan will build closer ties on nuclear and renewable energy Japanese Prime Minister Shinzo Abe visited Warsaw midJune to participate in a summit of the Visegrad Group (comprising Poland, the Czech Republic, Hungary and Slovakia) where he met with leaders from the region. Polish Prime Minister Donald Tusk and Mr Abe talked mostly about cooperation in the energy sector. “Both our countries have to pay a lot for imported energy and this has a direct impact on the competitiveness of our economies,” said Mr. Tusk. In addition to Japan’s desire to sell nuclear reactors to Poland and other Central European countries, “We are also sharing experiences when it comes to ‘clean coal’ technology. Here, Japan is one of the world leaders,” PM Tusk added. Meanwhile Mr Abe said

“Closer ties with the V4 will lead to infrastructure exports, a goal under Japan’s economic growth strategy.” Up till now, the majority of trade between Japan and Poland has been in the areas relating to the automotive industry and electronics. “Now Japan wants to develop new areas of cooperation such as in the nuclear power industry and in coal,” Japanese foreign affairs ministry spokesperson Yutaka Yokoi said during the visit.

Big names interested US-Japanese group GE Hitachi, France’s Areva and Westinghouse, a US unit of Japan’s Toshiba, have all signaled interest in supplying technology for Poland’s nuclear power plant project. But despite the optimistic statements from the prime ministers, Japanese nuclear investment in Poland has several obstacles to overcome. Because of tumbling energy prices in recent years,

many European countries have halted plans for building or expanding nuclear plants. Mr Tusk also admitted at a press conference in late June that Poland’s nuclear energy program may be launched later than expected due to the increasing role of natural gas in the Polish economy. “Our position on nuclear energy has not changed but we will be flexible because that’s what the energy sector today requires,” Mr Tusk said. The construction of the first of two power plants planned, with a capacity of 3,000 MW each, is scheduled to commence in 2018. The first generation unit is due to be delivered by 2024. However, deadlines for talks on possible capital involvement and debt financing, as well as for the market model, technical issues and the legal framework of the investment, have already been moved back numerous times. In Japan, Prime Minister Abe’s efforts to resume

COURTESY OF KPRM/FLICKR.COM

Japan wants to help build Poland’s nuclear plant

Japanese PM Shinzo Abe (left) and Donald Tusk, at their meeting in mid-June exports of nuclear reactors are meeting with significant public opposition. According to a survey by Asahi Shimbun, a Japanese national newspaper, 59 percent of respondents said they were opposed to using nuclear reactors proactively to promote eco-

nomic growth. A mid-level lawmaker of the ruling Liberal Democratic Party warned that if Mr Abe pushed exports of nuclear reactors too strongly, it could affect elections to the upper house of Japan’s parliament in July. Some caution is reflected

in the joint statement by Japan and the V4 group, which says that Tokyo needs to contribute to nuclear safety based on lessons learned from the accident at the Fukushima power plant in 2011. Cathy Liu

BUSINESS

JUNE 24 – JULY 7, 2013

www.wbj.pl

Rail

Banking

Is Poland ready for high-speed trains?

KNF clamps down on mortgages

Value of mortgage loans granted per quarter (in z∏. mln) Source: Polish Bank Association

12 10 8 6 4 2

20 Q1

20 Q4

0 Q2

Jacek Ciesnowski

Mortgage activity continues to fall

roughly 275 km per hour. Poland’s history with Pendolinos goes back over a decade. PKP ordered 14 of them back in 1998, but the order was canceled in 2000 due to a shortage of funds. The company’s next tender for new high-speed trains wasn’t announced until 2010, which was, once again, won by Alstom. The overall investment, including running costs for the first 17 years, will come to €665 million.

The watchdog wants banks to lower the maximum loan period to 35 years and to assess the borrowers’ ability to maintain their income throughout the entire loan period, particularly after reaching retirement age.

the new trains will significantly cut the duration of many train journeys in Poland. For example, the ride from Warsaw to Kraków will take two and a half hours, as opposed to the current three and a half. During the testing procedures, the speed record for trains in Poland is expected to be broken. The current record is 251 km per hour, set in 1994 by a Pendolino sent to Poland by Alstom (then Fiat Ferroviaria) for promotional purposes. The company expects that the new record will be

Affordable borrowing

The new Pendolinos are expected to break the Polish train speed record this year

Polish Financial Supervision Authority (KNF) has issued a new recommendation with guidelines for banks on how they should manage their mortgage exposure. The KNF wants banks to lower the loanto-value (LtV) ratio on mortgage loans to 80-90 percent for apartments and to 75-80 percent for commercial properties, the KNF said in a statement. In practice, after January 1, 2014 borrowers will have to make a 5 percent down payment on the house or apartment they wish to purchase. That will rise to 10 percent from January 2015, and to 15 percent a year later, and finally up to 20 percent in 2017. The LtV ratio could be raised to 90 percent in case the borrower produces additional collateral for the loan or buys additional insurance. At the end of 2012 some

240,000 mortgage loans in Poland exceeded the value of the property. The total value of mortgage loans with an LtV over 100 percent was z∏.85.9 billion, with nearly a quarter of that sum coming from loans with an LtV exceeding 150 percent.

COURTESY OF PKP INTERCITY

In late June, France’s Alstom energy and transport conglomerate presented its first Pendolino high-speed train ordered by Polish State Railways (PKP) subsidiary PKP Intercity. The first of the 20 machines PKP wants to buy should be shipped to Poland in August, where it will undergo rigorous testing procedures. The new trains are expected to be included in regular train schedules by December 2014. Alstom says the machines will be able to reach a speed of 250 km per hour, although Polish tracks are only suitable for speeds of up to 200 km per hour – and even then only on a limited number of routes. Poland’s Ministry of Transport promises that further track modernization will allow Pendolinos to travel as fast as 220 km per hour. Even with those limitations,

The financial watchdog wants banks to implement more restrictive mortgage policies

The first of 20 highspeed trains ordered by PKP Intercity is ready, but its still a long way before passengers will be able to ride them

The KNF has also recommended setting a debt-toincome (DTI) ratio limit for borrowers. Those with earnings higher than the national average could pay a monthly installment of up to 50 percent of their monthly income, while those earning less than the average pay should incur no more debt than 40 percent of their income. At the end of 2012 some 16 percent of all mortgage loans had a DTI ratio higher than 50 percent, according to a report issued by the KNF. With the current volatility in the currency market and residential real estate prices continuing their downward slide (a 15 percent drop since 2008 on the primary market), further restrictions on mortgage loans in foreign currencies are also on the cards. The KNF wants to restrict access to them to only those earning in foreign currencies. Most of the recommendations should be implemented by January 1, 2014, the KNF said in a statement. Beata Socha

BUSINESS

www.wbj.pl

JUNE 24 – JULY 7, 2013

Interview

Megahertz and megabytes in Warsaw Jacek Ciesnowski: Why do you believe this symposium is important? Magdalena Gaj: The symposium is organized by the International Telecommunication Union, a UN agency. This year we already have 600 participants confirmed, including top executives from the biggest companies in the field, such as France Telecom, Cisco Systems, AT&T and national and international regulators. This

year’s symposium will concentrate on 4G infrastructure, its regulations and perspectives. How significant is this meeting for the sector, are any deals signed or regulations passed there? Nothing is decided there, but I wouldn’t call it a place just for social networking either. It’s a good place to start discussions that could come to fruition at a later date – for example the

matter of allocating the frequencies that are assigned by ITU. It’s a good place to signal your needs and priorities and start working on getting those [frequencies]. COURTESY OF THE OFFICE OF ELECTRONIC COMMUNICATIONS

On July 3-5, telecoms regulators from around the globe will gather in Warsaw to discuss the sector’s future at the 13th Global Symposium for Regulators. WBJ sat down with the president of Poland’s Office of Electronic Communications, Magdalena Gaj, to see what this event could mean for the industry in Poland

It’s the first GSR event being held in an EU member state, why was Poland chosen to host the conference? Poland is one of the global leaders in LTE technology (high-speed mobile internet), in 2010 we were one of the first countries in the world to successfully implement that technology and other countries and companies that want to have 4G networks are looking at our example. We’re one of the main centers when it comes to the ICT services sector as well. Right

Magdalena Gaj, Office of Electronic Communications president

M&A

SHUTTERSTOCK

Malma back on the menu

The iconic Polish pasta brand was bought up by sector leader Maspex, after its previous owner went bankrupt Malma, one of the best-known pasta brands in Poland, has been purchased by Maspex Grupa Wadowice. Maspex has announced it will invest z∏.50 million into production and logistics for the Malma brand, which previously belonged to an eponymous company that was declared bankrupt in 2010. The Malma brand was created in one of the first waves of privatization in Poland. In 1991 French businessman Michel Marbot bought a factory in Malbork and began producing pasta there.

Mr Marbot was one of the first businesspeople to create Polish TV ads for his products, going so far as to hire Italian actress Sophia Loren as one of his spokespeople. He was also one of the first to use Canadian amber durum wheat to make his pasta. Over the years he invested €50 million in the brand. The expenditures paid off, as the pasta was widely acclaimed. Malma was even served in restaurants in Italy. His success, however, was also the beginning of his failure. In 2003 Mr Marbot took out a loan of z∏.130 million from Bank Pekao. After just two years, the lender claimed that the company was unable to pay off the debt and demanded that all of the money be returned. Long and difficult legal proceedings ensued, which result-

ed in a court declaring Malma bankrupt in 2010. But just when it looked as if the brand had been consigned to history, Maspex stepped in and bought Malma’s assets from its liquidation trustee in late June. Maspex, which has its own pasta brand, Lubella, acquired the Malma brand and its facilities in the transaction. Malma-brand pasta will be produced at Lubella’s production facilities in Lublin. Maspex plans to expand its production units and build a new logistics center at the site. The company will also increase employment at the Lublin facility, and is offering former employees of the Malbork factory jobs there. Maspex is the leader in Poland’s pasta market, with a 30 percent market share. Jacek Ciesnowski

now the sector in Poland is worth some €20 billion, which comes to some 4 percent of the country’s GDP, far more than the mining industry, which some still associate with Poland. We estimate it will grow to 13 percent in the coming years.

innovation, this year alone it’s over z∏.4 billion. When we add to it EU funds it puts us in fourth place in the ranking of EU countries with the biggest growth in internal spending on research and development. We still have to work hard though,

Is that estimate fair, considering that Poland has one of the lowest levels of spending in the EU and that our main advantage in the field is the low wages of Polish staff? I don’t agree with that assessment. It might have been true in the past that Poland was way behind in innovation, but we’re quickly closing the gap between Poland and higher-developed Western European countries. Currently we are 10th in the EU when it comes to average spending on innovation in the companies that are working in such sectors and ninth when it comes to production and sales of new products. The state also spends significant amounts on

“Right now the sector in Poland is worth some €20 billion, which comes to some 4 percent of the country’s GDP, far more than the mining industry” to keep those companies investing in Poland, instead of moving to the east. What does the near future hold for the Polish telecommunication sector? This year we want to sell licenses for the 800 MHz frequency. They should more or

less cover all of Poland’s territory. We really hope that the initiative will bring high-speed mobile internet to rural areas, which can’t count on standard internet connections using landlines or fiber optics. That’s one of the fields in which Poland is way behind other countries. These investments are very expensive and complicated from a legal standpoint. We hope selling these licenses will help close this technological gap between rural and municipal areas. We think that the future of the sector is a synergy between companies from different fields working together. We plan on implementing digital radio soon. That will allow people to listen to radio stations on TV sets. The same goes for internet browsing on TV screens. Telecommunication companies will also be working with energy companies on providing solutions for intelligent houses. ●

President-ordered report urges more innovation spending Poland needs to start investing in innovations and reform public administration, according to a report prepared by Jerzy Hausner, an economist and former minister of economy and labor. Mr Hausner was asked by Polish President Bronis∏aw Komorowski to compile an in-depth report on the challenges facing the Polish economy. The report concludes that Poland’s main advantage in attracting investors – low production costs – will soon lose

importance as the country falls into the “middle-income trap,” (a situation when a country reaches a certain income and gets stuck at that level), and won’t be able to count on exports anymore. To avoid long-term stagnation, Poland needs to focus on sectors that rely on innovation and knowledge, areas in which the country lags severely behind. In the latest Innovation Union Scoreboard ranking it placed 24th out of 27 EU member states.

The study also criticized the current state of public administration, calling it “overgrown and fossilized,” accusing it of exerting constant control over entities, like in the communist era. The style of conducting politics needs to change as well, according to the report. Currently politicians are focused more on seizing power rather than on using it to resolve crucial issues, Mr Hausner’s report finds. Jacek Ciesnowski

FINANCE & ECONOMICS

JUNE 24 – JULY 7, 2013

Industry

Production falls, confirming stagnation

The volume of Poland’s industrial production fell by 1.8 percent year-on-year and by 0.7 percent month-on-month in May, statistics office GUS said at the end of June. Seasonally adjusted industrial output fell by 1.5 percent y/y and by 1.0 percent m/m. The numbers were broadly in line with expectations. Analysts surveyed by the Polish Press Agency (PAP) expected industrial output to fall by 1.5 percent y/y and by 1.0 percent month-on-month. A month earlier, in April, production surprised on the upside, growing 2.7 percent y/y. “[The] clear deceleration as compared to April (when industrial output expanded by 2.7 percent y/y) was mainly due to [a] statistical effect: in May there was one working day less than a year ago, in April it was one day more,” BZ WBK economists wrote in

Production ups and downs The year-on-year growth rate in Poland’s industrial production (%)

11 9 7 5 3 1 -1 -3 -5 -7 -9 -11 Ma y Jun ’11 .’ Jul 11 . Au ’11 g. Se ’11 p. Oc ’11 t. No ’11 v. De ’11 c. Jan ’11 . Feb ’12 . Ma ’12 r. Ap ’12 r. Ma ’12 y Jun ’12 .’ Jul 12 . Au ’12 g. Se ’12 p. Oc ’12 t. No ’12 v. De ’12 c. Jan ’12 . Feb ’13 . Ma ’13 r. Ap ’13 r. Ma ’13 y ’1 3

Output declined by nearly 2 percent in May, though exportoriented industries were a bright spot

Source: Central Statistical Office

an e-mailed comment. “The annual pace of growth of industrial output has hovered around zero for a few quarters, this sector remains in stagnation and so far data do not show any change of this tendency.” Detailed data from GUS show that construction and assembly production fell by 27.5 percent y/y and 23.1 percent month-on-month. “There are no signs of upcoming improvement in this sector, we expect the annual pace of

growth to remain deep in negative territory at least until the end of the year,” the economists wrote. On the bright side, they said, were earlier releases this month of PMI and GUS’s economic indices, which all picked up slightly this month, indicating the worst could be over. In terms of production, exportoriented industries grew strongly: furniture production grew by 6.7 percent and auto production by 4.3 percent. KW, AK

Monetary policy

NBP balks at proposal of multiple terms for RPP members The Finance Ministry’s proposal could be construed as an attempt to limit the council’s autonomy, the central bank said The National Bank of Poland does not support the Finance Ministry’s proposal to give members of the bank’s interest ratesetting Monetary Policy Council (RPP) the opportunity to serve multiple terms, the the central bank’s press office wrote in reply to a query from daily Rzeczpospolita. Currently RPP members serve one six-year term. The idea to give RPP mem-

bers more than one term did not come from the NBP, the statement said. “It may be interpreted as an attempt to limit the autonomy of the council.” Economists were also critical of the Finance Ministry’s proposal. Janusz Jankowiak from the Polish Business Roundtable said reforms to the RPP should go in a different direction. Extending the number of terms is too much of an intervention into the activity of monetary authorities, he said. Former RPP member Marian Noga was surprised about the proposed change. “It’s an issue of secondary importance,” he said.

“When deciding whether to cut, raise or leave the interest rates unchanged, RPP members shouldn’t take into consideration if their decision will affect their chances of being voted on for the next term,” said Jakub Borowski, chief economist at Credit Agricole Bank Polska. Current regulations allow RPP members to serve one sixyear term, which they could exercise only once in their lifetime. The Finance Ministry proposal would allow them to serve two six-year-long terms. The current terms of the RPP members end in 2016. KW

Wages up, employment down in May The average gross monthly salary in Poland rose by 2.3 percent year-on-year in May, to z∏.3,699.67, statistics office GUS said. Measured month-onmonth, the average salary fell by 3.4 percent. The figures were slightly worse than the market had expected. “Let us remember that one month earlier the data on April’s wage growth surprised on the upside (showing 3.0 per-

cent y/y),” BZ WBK economists wrote in an e-mailed comment. “May’s data confirms that amid weak demand enterprises do not rush to increase wages,” they said. GUS also said that employment in Polish enterprises fell by 0.9 percent y/y to 5,478,600 persons. In month-on-month terms the level of employment remained unchanged. Analysts expected employment to fall by

0.8 percent y/y and by 0.1 percent m/m. “This change may be due to a longer winter, which caused some seasonal jobs (e.g. in construction) to appear later than usual (in May instead of April). We still cannot say there was a marked revival of demand for labor in the Polish corporate sector,” BZ WBK economists wrote. KW

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INTERVIEW

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JUNE 24 – JULY 7, 2013

Society

A dire diagnosis for Polish society

Ewa Boniecka: You began your research about Poles’ living conditions in 1991, just after our country’s transformation and since 2000 you have been in charge of the “Social Diagnosis” project. What are the general conclusions? Janusz Czapiƒski: Comparing the findings from all of our reports, the conclusions are that Poles are mostly optimistic about their own lives. There was no year when Poles said their living conditions had deteriorated compared to the previous year. There was no recession in domestic households and it looks like we are continuing to move in the right direction. We are getting richer, albeit somewhat more slowly. At the same time, until about 2009, along with the rising level of affluence, there was growing economic stratification in society. Wealthy people were

getting richer faster than the poorer people. But that trend reversed in 2009 and from that year social inequality began to decrease, albeit gradually. The poorer people began to get richer faster than the wealthy. This is a positive sign. Poland’s stratification is beginning to resemble more the Scandinavian countries’ and less the social inequalities we can see in the United States, where the differences between the rich and the poor are very big. Many Western academics point to how important lowering the disproportions in incomes is for avoiding social unrest. And the findings of our report show that it is also very important for keeping people satisfied with their lives. But the picture you paint in the report, portraying Poles as

being satisfied with their lives, seems in sharp contrast with the prevailing outlook in the country, which is generally gloomy. Why? We have to distinguish between two kinds of assessments: the one Poles give about their own lives and their view on the general situation in the country. And now, just as it has always been, there’s a big discrepancy between these two assessments. Poles see improvement in their private lives, as they are constantly getting richer. While in the early 1990s some 58 percent of Poles said they were happy, in 2013 that number rose to 81 percent. Similarly, when Poles assess their quality of life, they see more positive developments, including lower stress levels and improving health, which corresponds with longer life expectancy. Poles express satisfaction with various aspects of their personal life, they also feel more secure in their environment. However, when Poles express their views on the general situation in the country, their assessments differ. Until 1997 they believed the situation in the country was getting bet-

ter, but then it started deteriorating. Currently, they say the outlook for the country is rather negative and there is an everincreasing gap between the sentiments concerning Poles’ personal well-being and the way they see the grim reality around them. So, paradoxically Poland is a country of happy people living in an unhappy society and in a state they are dissatisfied with. What could the consequences of this be? Everywhere in the world people consider their own lives to be better than the state of the entire community and the overall situation in their country. In Poland, however, this disparity is very big. This is because Poles do not identify with the state. They view the nation in symbolic terms – they cherish heroes who died, celebrate anniversaries – but they do not identify with the state here and now. Nor do they identify with state institutions. They are constantly dissatisfied with the government, and at the same time they are trying to separate themselves from politics and thus prevent their disappointment with public life

COURTESY OF THE UNIVERSITY OF WARSAW

Janusz Czapiƒski, professor of psychology at the University of Warsaw and the lead author of a long-running research project on Polish society’s living conditions called “Social Diagnosis,” sits down with WBJ to talk about how Poles perceive the quality of their lives and the social, educational and economic challenges Poland is facing

Janusz Czapiƒski from spilling over to their personal lives. In other words, there is not

only a dramatic disparity between how they see their own lives and the general situation

INTERVIEW

JUNE 24 – JULY 7, 2013

in the country, but additionally Poles are looking to have less state participation in their lives. This is difficult, because the state is present in our life, one way or another. So this alienation from our own state has harmful consequences for our social, economic and political life. What is the cause of this alienation from the state? I believe Poland never developed a genuine society, Poles lack the spirit of belonging to a community. Poles cherish and love their country, but they don’t know how to function together in everyday life as one social organism, where individual people cooperate as a group. And this very low level of social capital in Poland is connected with a lack of trust in one another and suspecting others of having insincere and hostile intentions. This is deeply rooted in our history, going back the feudal system, where 90 percent of the population lived separated from other social groups and from the state. Later came the partitions of the country in the late 1700s [which divided Poland’s territory between Russia, Prussia and Austria] and the rule of foreign powers. This left a mark on the mentality of Poles which continues until today. Poles prefer to act on their own rather than together and are unwilling to respect the authority of state institutions. Poles act together when facing a threat, but when that is over, so is cooperation. This lack of ability or will to build a well-functioning society is weakening our democracy. What other conclusions does the “Social Diagnosis” come to? Poland’s economic development is largely dependent on absorbing know-how and capital from the West and production based on low-cost labor. Our country should be moving towards building its own innovative economy. The critical point will come in 2020 when the cost of labor rises in Poland to a point where the influx of investment from European countries comes to an end. Without creating strong social capital in Poland, we will not be able to develop an innovative economy and compete with other countries. And we have a lot of talented and innovative individuals who could get the process going. What we need is more cooperation between them and business. And now, while we will still have substantial funds from the EU 2014-2020 budget, it is high time we changed the way these funds are distributed. They should go primarily to those entrepreneurs who are ready to cooperate with one another and create a production base in Poland. The state has the instruments it needs to foster cooperation between science and busi-

ness. It seems that Regional Development Minister El˝bieta Bieƒkowska, responsible for managing EU funds, is moving in that direction. You have stressed on several occasions how important education is for building a spirit of cooperation in a community, and you have criticized the present educational system in Poland. Why? Current educational reforms are mostly cosmetic in nature and our schools are still very outdated. Pupils sit one behind one another at desks, there is no interaction between them. Our pupils are not taught to work in teams and this continues later in the system of higher education, where every student works individually. Education in other countries is quite different. For instance at British universities, young people work collectively on projects. This leads to a situation where, as the saying goes, “A Pole can do many things, but several Poles together not so much.” To my mind, the main thing that needs reforming in Polish schools is socialization. An increasing number of young Poles are moving to Western Europe and starting families there. Do you consider youth emigration a problem? The scale of emigration of young Poles is alarming. They leave the country because they cannot find good jobs here. And now we are observing some changes in the nature of the emigration. While in the 1990s it was mostly manual workers and craftsmen who were moving to the West, now the most highly educated people are also leaving Poland. It is a real brain drain, which is very harmful to our economy. But to keep these people in Poland, the country has to provide them with jobs as well as opportunities to obtain apartments for rent. The idea that an average Pole can own an apartment is unrealistic under current conditions. The best element of the pro-family policy is to build flats for rent for young couples. Otherwise our birth rate will continue to fall and extending maternity leave will not help much. The report confirmed that the majority of Poles have conservative views on social matters, like in vitro or civil unions. Do you think this will change? Our findings show that one of the reasons for the low birth rate in Poland is in fact infertility. So Poles will be ready to accept the in vitro method in spite of the opposition from the Catholic Church. But the introduction of civil unions will not be accepted, because people see them as a way of establishing homosexual marriage [which Poles strongly oppose].

Poles are very open to all technological changes, but they remain conservative in their attitude towards ethical matters. One of the anchors of conservatism in Poland is the Catholic Church. According to our findings, 40 percent of Poles regularly attend church and together with those who attend church occasionally, they represent 70 percent of society. There are 25 percent of people who do not attend church, and this is a small minority in comparison with France or the Czech Republic. And one of the surprising findings of the “Social Diagnosis” is that conservatism is not less prominent among young people. Moreover, Poles who work and live in other countries, while adopting to a different cultural context, keep their basic conservative attitudes unchanged. People with conservative views on social matters are usually liberal in their economic views. With Poles’ pro-European attitudes and market economy can Poland move forward economically and technologically while remaining conservative on social issues? In my opinion it is not possible to divide these domains completely, because social matters divide Poles as well as political parties. Those matters have become a political battlefield in Poland, which preserves social intolerance towards those who think differently. The low level of tolerance leads to a low level of confidence in people. And in an intolerant society it is not possible to introduce innovations, because innovations require liberty in all domains. Even though economy is not the crux of the conflict between conservative and liberal groups, social issues often determine their political affiliation and thus their economic views. What are your general predictions for Poles based on the findings of the report? From my point of view the prospects are pessimistic, but I am an academic and not a politician. My job is to review facts, and they point to a negative prognosis. In my opinion the present situation in Poland, which foreign observers are praising so much, is like that beautiful swan’s song. Yes, we have solid foundations in form of our legal and democratic institutions, and our economy is still growing. But other countries are not standing still either and we have to be able to compete with them. We have to define the path we are on and determine if it will lead us to the winner’s circle. ● For more information on “Social Diagnosis” log on to www.diagnoza.com

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BOOK OF LISTS

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JUNE 24 – JULY 7, 2013

Book of Lists Gala 2013

Awarding resilience and success On June 18, Warsaw Business Journal Group celebrated the launch of the 18th edition of its annual publication Book of Lists at a gala held in Dom Dochodowy at Plac Trzech Krzy˝y in Warsaw. The event attracted over 250 guests from a wide range of industries in Poland. Like each year, the gala focused on major players operating in various sectors in Poland and awarded them with various distinctions for their successes. The year 2012 was a particularly difficult time for Polish businesses, with the highest number of bankruptcies filed since the beginning of the crisis. All the more reason to celebrate those who continue to strive to overcome the slowdown and can boast some great results and achievements.

Best of the best During the gala the Warsaw Business Journal Group handed out five certificates to the

top-ranking companies in real estate, business consulting, legal services, IT consulting and among business information providers. “I want to take this opportunity to congratulate all of the companies that appear in Book of Lists. Your presence in our rankings guarantees your company visibility and outreach to thousands of investors and businesspeople both in Poland and internationally,” Andrew Kureth, editor-in-chief of Warsaw Business Journal said. The first place for the highest-ranking commercial real estate agent went to CBRE for the largest volume of commercial area leased in 2012. The top-ranking business consulting company certificate was awarded to PwC, which had the highest revenue from business consulting last year, while the top law firm in terms of the number of board-certified lawyers employed in 2012 was Dentons. The certificate for first place in IT consulting services was awarded to Accenture, which had the highest revenue from IT consulting in the previous year. The final certificate went to BIG InfoMonitor as the biggest business information

provider for the highest number of reports prepared in 2012.

In the spotlight Warsaw Business Journal Group took the opportunity to distinguish three companies with WBJ Spotlight Awards: postal services company InPost for the International Success Story of the Year, Skanska as the Real Estate Investor of the Year and the National Centre for Research and Development as the Innovator of the Year. The Spotlight Awards are given to companies who shine a positive light on Poland’s business environment. Additionally, a special distinction award for extraordinary input into the development of the security services sector in Poland was awarded to City Security.

The publication Book of Lists is a Polish-English publication compiling data about major players in the Polish market in all sectors of the economy. It consists of ranking lists divided into eight main categories, including corporate services, financial services, con-

WBJ/ROXANA DAWID

This year’s gala celebrated the 18th edition of Poland’s premier business guide

This year’s Book of Lists gala was held in Dom Dochodowy in Warsaw struction services, education, automotive industry, as well as IT and telecoms. The lists present top players in each sector ranked by key business indicators, such as revenue, total GLA or number of employees. It also contains a business guide providing information on Polish government agencies, chambers of commerce or special economic zones.

“This is a tool that, in just over 200 pages, gives you deep insight into the Polish market, providing thousands of bits of crucial information on over 2,500 companies in 70 different sectors of the market,” Mr Kureth said. The 2013 edition of Book of Lists was expanded with several new lists, including Business Process Outsourc-

ing Companies, Green Buildings and Exporters in Poland. Additionally, this year an entirely new website for Book of Lists was launched at bookoflists.pl, which allows for immediate access to the data, is continuously updated and allows for lists to be downloaded in Excel format. Beata Socha

BOOK OF LISTS

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Jaros∏aw Chudziak, Vice-President, Accenture Poland and Head of Accenture Management

Mariusz Hildebrand, President of BIG InfoMonitor

Wojciech Koz∏owski, Partner at Dentons

Piotr ¸uba, Managing Partner in the Advisory Department at PwC

SOURCE: WBJ/ROXANA DAWID

Dariusz G∏az – Member of the Board and Urszula Grudziƒska – Member of the Supervisory Board at City Security

SOURCE: WBJ/ROXANA DAWID

Daniel Bienias, Director, Office Agency at CBRE

SOURCE: WBJ/ROXANA DAWID

JUNE 24 – JULY 7, 2013

WBJ editor-in-chief Andrew Kureth with Katarzyna Zawodna, Regional Director, North Region at Skanska Property Poland

SOURCE: WBJ/ROXANA DAWID

WBJ editor-in-chief Andrew Kureth with Tomasz Wnuk, Sales Director at InPost

WBJ editor-in-chief Andrew Kureth with Professor Krzysztof Jan Kurzyd∏owski, Director of the National Centre for Research and Development

PUBLISHER VALKEA MEDIA SA

EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL)

MANAGING EDITORS

REAL ESTATE EDITOR

JACEK CIESNOWSKI (JCIESNOWSKI@WBJ.PL) BEATA SOCHA (BSOCHA@WBJ.PL)

KAROLINA KOWALSKA (KKOWALSKA@WBJ.PL)

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REPORTER

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KAMILA WAJSZCZUK CONTRIBUTORS

COLUMNISTS

The WBJ Spotlight Awards

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AGNIESZKA BREJWO (ABREJWO@WBJ.PL)

PIOTR WYSKOK

GRAPHIC DESIGNER

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KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

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MONIKA BRYSIAK (MBRYSIAK@VALKEA.COM)

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OPINION & ANALYSIS

JUNE 24 – JULY 7, 2013

The ultra-easy money experiment William White

he world’s central banks are engaged in one of the great policy experiments in modern history: ultra-easy money. And, as the experiment has continued, the risk of failure – and thus of the wrenching corrections and deep economic dislocations that would follow – has grown. In the wake of the crisis that began in 2007, policy rates were reduced to unprecedented levels, where they remain today, and measures were taken to slash longer-term rates as well. Nothing like it has ever been seen before at the global level, not even in the depths of the Great Depression. Moreover, many central banks’ balance sheets have expanded to record levels, although in different ways and for different rationales – further underscoring the experimental character of the monetary easing now underway. The risks implied by such policies require careful examination, particularly because the current experiment appears to be one more step down a well-trodden path – a path that led to the crisis in the first place.

Aggressive monetary policy Beginning with the sharp monetarypolicy easing that occurred following the 1987 stock-market crash, monetary policy has been used aggressively in the face of every economic down-

turn (or even anticipated downturn) ever since – in 1991, 1998, 2001, and, with a vengeance, following the events of 2007. Moreover, subsequent cyclical tightening was always less aggressive than the preceding easing. No surprise, then, that policy rates (both nominal and real) have ratcheted ever downward to where they are today. It can, of course, be argued that these policies produced the “Great Moderation” – the reduction in cyclical volatility – that characterized the advanced market economies in the years leading up to 2007. Yet it can also be argued that each cycle of monetary easing culminated in a creditdriven “boom and bust” that then had to be met by another cycle of easing. With leverage and speculation increasing on a cumulative basis, this whole process was bound to end with monetary policy losing its effectiveness, and the economy suffering under the weight of imbalances (or “headwinds”) built up over the course of many years. The Swedish economist Knut Wicksell raised concerns about such problems long ago. He suggested that a money rate of interest (set in the banking system) that was less than the natural rate of interest (set in the real economy) would result in inflation. Later, economists in the Austrian tradition noted that imbalances affecting

the real side of the economy (“malinvestments”) were of equal concern. Later still, Hyman Minsky contended that credit creation in a fiatbased monetary economy made economic crises inevitable. Finally, many economists in recent decades have identified how excessive leverage can do lasting damage to both the real and financial sides of the economy.

Didn’t they see it coming? Looking at the pre-2007 world, there was ample evidence to warrant such theoretical concerns. While globalization was holding down inflation, the real side of the world economy was exhibiting many unusual trends. Household saving rates in the English-speaking economies fell to unprecedented levels. Within Europe, credit flows to peripheral countries led to unprecedented housing booms in several countries. In China, fixed capital investment rose to an astonishing 40 percent of GDP. Moreover, similar unusual trends characterized the financial side of the economy. A new “shadow banking” system evolved, with highly pro-cyclical characteristics, and lending standards plummeted even as financial leverage and asset prices rose to extremely high levels. The monetary policies pursued by central banks since 2007 have essentially been “more of the same.” They

have been directed toward increasing aggregate demand without any serious concern for the unintended longerterm consequences. But it is increasingly clear that ultra-easy monetary policy is impeding the necessary process of deleveraging, threatening the “independence” of central banks, raising asset prices (especially for bonds) to unsustainable levels, and encouraging governments to resist making needed policy changes. To their credit, leading central bankers have stated repeatedly that their policies are only “buying time” for governments to do the right thing. What is not clear is whether anyone is listening. One important impediment to policy reform, on the part of both governments and central banks, is analytical. The mainstream models used by academics and policymakers differ in important respects but are depressingly similar in others. They emphasize short-term demand flows and presume a structurally stable world in which probabilities can be assigned to future outcomes – thus almost entirely ignoring uncertainty, stock accumulations, and the financial imbalances that characterize the real world.

Ideas anyone? Recalling John Maynard Keynes’s dictum that “the world is ruled by little

else” but “the ideas of economists and political philosophers,” perhaps policymakers need new ideas. If so, the immediate prognosis for the global economy is not good. The latest fashion in policy advice is essentially still more of the same. The call for “outright monetary financing” involves raising government deficits still further and financing them through a permanent increase in base money issued by central banks. Targeting the level of nominal GDP (or the unemployment rate, as in the United States) is a way of convincing financial markets and potential spenders that policy rates will remain very low for a very long time. All of these policies run the risk of higher inflation and/or still more dangerous economic imbalances. Sadly, a fundamental mainstream reassessment of how the economy works is by no means imminent. It should be. ● William White, a former deputy governor of the Bank of Canada and a former head of the Monetary and Economic Department of the Bank for International Settlements, is chairman of the Economic and Development Review Committee at the OECD. Copyright: Project Syndicate, 2013. Project-syndicate.org

Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. 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.

COVER STORY

JUNE 24 – JULY 7, 2013

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European Union

It’s now the EU-28 Remi Adekoya

Wait-and-see “Ordinary Croatians are adopting a wait-and-see attitude. They fear prices going up as they heard from Polish tourists how the cost of living went up when Poland joined the European Union,” said Ivo Scepanovic, co-creator of the English language online news portal Croatian Times. “Right now more important for most Croats is the upcoming tourist season. Ten million Europeans visit us every year, leaving some welcome fresh cash,” he added. Regarding opportunities for Croatia’s economy after accession, Mr Scepanovic was cautious.

Croatia is joining the EU on July 1 “Actually, a lot of Croatian companies who up till now have been exporting their goods to Serbia, BosniaHerzegovina and Montenegro could lose out because of new EU-related taxes and custom duties to non-member countries,” said Mr Scepanovic. “Serbian companies will likely benefit the most from that vacuum,” he added. Mr Scepanovic said there would be business opportunities “for those who are prepared for such a market with the right quality of product.” As an example, he pointed to Zlatan Gibonni, Croatia’s most popular singer, who has sold millions of records in the Balkans and is now preparing to release his first English-language album. “He has a product he can offer on that market, especially in countries like Poland, Slovakia and the Czech Repub-

“Overall the level of sentences in organized crime cases remains low. Also in the area of corruption court sentences are low; very often suspended sentences are pronounced,” the report read. “Effective and dissuasive sentences in cases of corruption and serious and organized

pay for the surgery in Croatia plus a 10-day holiday package thrown in for the same amount they would need for the procedure in their countries.

Better prepared Croatia seems better prepared for EU accession than were say, Bulgaria or Romania in 2007. Commissioner for Enlargement and Neighbourhood Policy Stefan Füle was likely referring to the two former-communist countries when he said Croatia is joining the EU “better prepared than some other acceding countries.” However, just like in Romania and Bulgaria, corruption remains a big problem in the Balkan state. The country ranked an unimpressive 62 in the 2012 Transparency International Corruption Perceptions Index. The country’s former prime minister, Ivo Sanader, is

crime are needed to continue developing a sustained track record and avoid creating a climate of impunity,” it added.

Not overnight EU officials readily admit that the membership won’t bring immediate positive results. “What will the EU bring to

“Croatia seems better prepared for EU accession than were say, Bulgaria or Romania.” lic.” Other possible beneficiaries could be the Croatian private health care industry. A visit to the dentist costs three times less there than in Italy and the equipment used is the same, said Mr Scepanovic. Laser eye surgery costs roughly €1,600 in Croatia, so a German or a Frenchman can

currently serving jail time after being found guilty of taking millions of dollars in bribes from foreign companies. In the European Commission’s final report on Croatia’s accession preparations it stated that the country needed to do much more to tackle corruption.

SHUTTERSTOCK

On July 1, some two decades after the bloody breakup of Yugoslavia, Croatia will become the second of its former republics to join the European Union in what will probably be the most low-key EU accession event in recent years. Although the government of the 4.4 million-strong country is hailing EU-entry as a big success, ordinary Croatians seem in little mood to celebrate. The Balkan nation concluded accession negotiations in 2011 and in the following year, 66 percent of Croats voted in favor of joining the European Union. But the EU is currently experiencing its most protracted economic crisis ever, with many member states struggling to grow their economies and deal with a debt crisis that has forced governments to slash public spending and implement other painful austerity measures. The EU accounts for some 60 percent of Croatian exports, and the economic malaise there has hurt Croatia’s economy badly. Over 20 percent of Croats are unemployed. The economy shrunk by 2 percent last year and is expected to continue contracting in 2013 and 2014, albeit at a slower pace. It remains to be seen if EU accession is at least a partial remedy to this. In fact, many Croats think things might even get worse, not better, after they join what was long considered Europe’s elite club.

SHUTTERSTOCK

Croatia is set to become the 28th member of the European Union. What does that mean for Europeans and for Croatians?

Ten million European tourists visit the country each year

Croatia? Well, do not expect dramatic changes overnight. Croatia will not be a different country on July 1 than it was on June 30,” said Mr Füle. But it is not only the Croats nor current EU member states that will be watching events closely in the formerly wartorn nation. Other would-be EU members, be they from the Balkans or from Eastern Europe, will also be observing events with a keen eye. Although each country’s case is unique, if Croatia is successful in the EU, supporters of further EU enlargement such as Poland will be emboldened to push Brussels to hasten the pace of negotiations with other nations that wish to join. If however, EU-fatigue is quick to come to the fore in Croatia, and if Brussels again appears to have acted prematurely in accepting a new member state (as some feel was the case with Romania and Bulgaria), the EU’s doors will likely stay shut for many years to come. And so it is in the interest of Zagreb, Brussels and Warsaw that Croatia becomes one of the EU’s success stories. Only time will tell, but the clock will start on July 1. ●

A new Netherlands-based company wants to debut on the WSE and use the funds to acquire a regional real estate portfolio

What kind of retailers are interested in locations on Kraków’s high streets? 15

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

Galeria Neptun cornerstone laid Galeria Neptun has held a cornerstone laying ceremony at the construction site of its eponymous shopping mall in Starogard Gdaƒski in northern Poland’s Pomorskie voivodship. Galeria Neptun, constructed on the site of a former Neptun footwear factory, will deliver 25,000 sqm of GLA when completed in autumn next year. Cushman & Wakefield, which is representing the investor as the leasing agent, is currently in talks with potential tenants interested in taking up more than 50 percent of GLA in the mall. ●

In this issue Transaction volumes . . . . . . . . .14 Wola Tarasy . . . . . . . . . . . . . . . . .14 Kraków high streets . . . . . . . . .15 Supersam demolition . . . . . . . .15 Meridian Properties IPO . . . . . .16 Nowy Sezam . . . . . . . . . . . . . . . .16 UBS renovations . . . . . . . . . . . .16

Polish real estate transaction volume reaches €750 million Apart from large-scale transactions, investors are increasingly interested in nonprime market assets

CEE commercial real estate investment volume amounted to €3.7 billion from January to May 2013, according to a recent report by CBRE. The figure marks a 30 percent increase compared to H1 of 2012. The steep increase can mostly be attributed to Russia, where the real estate trade volume in the first five months of 2013 has already exceeded 60 percent of the total investment volume in 2012. Poland, with transaction volumes of around €750 million, is less active relative to its eastern neighbor, but a strong asset pipeline and several significant preliminary signings are expected to push up investment volumes later in the year, the report reads. According to the report,

investors are increasingly interested in the non-prime market segment, targeting locations primarily in Poland and the Czech Republic. They seek to benefit from the low liquidity of the value-add assets in both major and smaller, regional cities. To date, 10 transactions exceeding €100 million each have been closed in 2013 across the CEE region, confirming investor demand for substantial acquisitions. CBRE experts expect trading in high-quality, large lot sizes to continue, which remain a driver of strong investment flows into CEE for the remainder of the year.

Big transactions in the pipeline A number of transactions involving large-scale properties and portfolios are expected to be signed soon, including Immofinanz’s sale of Silesia City Center in Katowice, a large-scale shopping center, acquired for the sum of over

Ghelamco sold the Senator building in downtown Warsaw to Union Investment for €120 million €400 million by a consortium led by Allianz. “Most recently, in Poland we have seen closings across all commercial sectors of both prime and value-add assets,” said Przemys∏aw Felicki, associate director at CBRE in Poland. Mr Felicki named several major transactions in Poland, including the acquisition of the Senator office

building in Warsaw by Union Investment for €120 million and Segro’s purchase of the ˚eran Park II logistics project in Warsaw for €43 million. He also mentioned the acquisition of Echo’s retail portfolio in Tarnów, Radom and Piotrków by London & Cambridge Properties for the sum of €67 million. “This trend should contin-

ue during 2013 and in addition to the traditionally liquid prime assets (already announced Silesia City Center in Katowice or Le Palais office building in Warsaw City Center), we should see closings of individual properties and portfolios of value-add or secondary retail, office and logistics properties,” Mr Felicki added. Karolina Kowalska

Residential

Cornerstone laid for Wola Tarasy The residential building will offer 159 apartments in June 2014 Belgian developer Batipont Immobilier held the cornerstone laying ceremony of its Wola Tarasy apartment building on ul. Obozowa 16 in the capital’s Wola district. It was attended by Belgium’s ambassador to Poland Raoul Delcorde, BPI general director Andrzej Wójcik and Bruno Lambrecht, general director of CFE Polska, the project’s general contractor. Ambassador Delcorde said, “I am very glad that there is an increasing num-

ber of Belgian companies present in the Polish market, such as the CFE Group, which BPI is a part of. I see today’s event as proof that the Polish market is developing well and that it is attracting more residential investments.” The investment will offer 159 housing units on a 7,446sqm plot. Scheduled for completion in June 2014, the scheme will deliver a variety of apartments, ranging from 1-bedroom to 5-bedroom units and from 24 sqm to 128 sqm (penthouse apartments). Prices of studio apartments start from z∏.185,000,

2-bedroom apartments from z∏.250,000, 3-bedroom units from z∏.320,000 and 4-bedroom units from z∏.470,000. The apartments on the top floor will offer large terraces ranging from 50 to 165 sqm, with a panoramic view of the Wola district and the center of Warsaw. The sale of luxury apartments began at the end of June. The development is located within a 15-minute tram ride from the nearest subway station and, upon completion of Warsaw’s second subway line, it will be about a kilometer from the Moczyd∏o subway station. KEK

COURTESY OF BPI

Developer Capital Park has fully leased out its Rac∏awicka Point office building on ul. Rac∏awicka in Warsaw’s Mokotów district. The last lease transaction was signed with Wspólny Rynek, which will occupy 164 sqm in the six-storey scheme, which comprises a total of 2,444 sqm. Capital Park is currently developing the Eurocentrum office complex, the Art Norblin mixed-use complex and the Royal Wilanów office building in Warsaw.

Economy

COURTESY OF GHELAMCO

Rac∏awicka Point fully leased

JUNE 24 – JULY 7, 2013 LI 18/24-25

The investment is scheduled for completion in 2014

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 or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription

LOKALE IMMOBILIA – REAL ESTATE

JUNE 24 – JULY 7, 2013

Retail

Tourist-driven success Kraków’s retail market is growing steadily, shaped by a large influx of tourists Retailers that want to expand or gain exposure on Kraków’s high streets remain interested in space there, but their further development is stunted by the scarcity of appropriate space, Jones Lang LaSalle’s experts say in their latest report on Kraków high streets and shopping centers. With nearly 9 million people visiting Kraków in 2012, the high street retailing in the city is concentrated in the central historic district – the Old Town area. “The prime pitch is located along the historical Royal Route, starting from the Florian Gate, through ul. Floriaƒska, the

shops, while jewelery and accessories occupy 10 percent. Banks and financial services companies are not a significant component of Kraków’s high street retailing; however, leading banks (PKO BP, Pekao SA, BZ WBK and Deutsche Bank) have stamped their presence on the Main Square. A few premium clothing operators, such as MaxMara, Paul & Shark, Escada and Marc Cain, as well as a Mirage multi-brand store, all sit very near each other along ul. Grodzka.

Main Square, ul. Grodzka to pl. Dominikaƒski square, the Royal Wawel Castle and Kazimierz, the old Jewish quarter,” explained Patrycja Dzikowska, associate director for research and consultancy at Jones Lang LaSalle. Ms Dzikowska added that the area around “ul. Szewska, which begins from the western side of Rynek G∏ówny and leads to a busy transportation hub on ul. Karmelicka, also lures retailers and the gastronomy sector.” According to the report, the gastronomy sector prevails on Kraków’s high streets, occupying around 36 percent of the total number of shop units in the Old Town area. The clothing, footwear and accessories category ranks second with 18 percent of unit

Prime locations in demand Monthly rents for an approximately 100-sqm fashion unit in Kraków’s prime high street location fluctuate between

Food for thought Shops on Kraków high streets, by retail category 7% 2%2% 3% 4%

Gastronomy

Multimedia

Clothing, footwear and accessories

Household goods and accessories

Jewelery and accessories

Banks and financial services

Services

Other

Health and beauty

Vacant units

36%

4% 6% 8% 10%

18%

Groceries Source: Jones Lang LaSalle

€80 and €95 per sqm, a level similar to the Warsaw high street area. The highest prices are found on ul. Grodzka, and more precisely between the Main Square and Pl. Dominikaƒski, with rental levels reaching €80-95 per sqm, while ul. Floriaƒska averages €70-80/sqm/month. Rental levels in less prestigious side-streets are markedly lower and do not exceed €35-40/sqm/month, the report reads. “High street locations in Kraków still capture interest from retailers who are either eager to expand or gain exposure on the local high street,” said Edyta Potera, associate director at JLL. “Nevertheless, its further development is currently hampered by the scarcity of appropriate space. Re-development of existing old tenements like Pasa˝ 13 into modern retail properties would potentially attract renowned fashion chains and further boost the growth of the high street in Kraków,” Ms Potera added. According to Ms Potera, the main obstacles to developments on high streets are the strict heritage conservation procedures and restitution claims from possible heirs of the properties. Karolina Kowalska

Retail

Hochtief will develop a 23,000-sqm retail facility in place of the old Supersam Griffin Group has been granted a construction permit for its Supersam retail facility on ul. Piotra Skargi 6 in the heart of Katowice. The company bought the property a month ago together with the new scheme in its planning stage from Centrum Development & Investments. As of press time, the general contractor for the scheme, Hochtief, was due to start the demolition of the existing structure in late June. After it has been pulled down, a new three-storey scheme designed by Konior design studio will be erected in its place. The new scheme will combine elements of traditional Silesian architecture with modern features, such as a glasslayered facade. It is scheduled for completion in 2015. The new scheme will comprise over 100 retail units and a large entertainment area with

a Multikino movie theater on 23,000 sqm. Some 60 percent of its area has already been pre-leased with Aldi as the main supermarket. Among its tenants are an Empik bookstore, a Smyk children’s toys and clothes store, as well as a Camaieu clothing store. The original Supersam building, designed by renowned architect Stefan Bry∏a and located near a brick-layered coach station building, has served as a retail center since the 1930s. In 1988 the scheme was expanded with an office building adjacent to the shopping facility and in 2002-2005 the investment was modernized and turned into a retail center. “Our strategy is to invest in strategic retail locations in city centers with a long trading tradition and to preserve their historical element,” said Przemys∏aw Krych, Griffin Group CEO, in an interview with Lokale Immobilia. “In Supersam we will preserve the original arches from

COURTESY OF GRIFFIN GROUP

Demolition of Supersam in Katowice

The new project will combine traditional Silesian architecture with modern features the 1930s. The new project was designed in accordance with the guidelines of the curator of historic buildings,” Mr Krych added, revealing that Griffin is also in the process of acquiring another historic retail facility in one of the biggest cities in Poland. The group already owns the nearly 100-year-old DH Renoma shopping center in

Wroc∏aw and the historical Hala Koszyki in Warsaw. The group invested €138 million of equity capital in Poland last year and plans to invest up to €200 million this year. It plans to buy three office buildings in Warsaw and one more in a smaller town in the Mazowieckie voivodship. Karolina Kowalska

www.wbj.pl

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

JUNE 24 – JULY 7, 2013

Stock exchange

Meridian Properties is 12 office and retail properties looking to raise €200 in major cities in Romania, Bulgaria, Hungary and the million through its Czech Republic. initial public offering as well as to acquire Planned acquisitions 12 properties in The portfolio the company European emerging wants to acquire is currently owned by Bluehouse and commarkets A newly established Netherlands-based real estate trust called Meridian Properties is planning an IPO on the Warsaw Stock Exchange in midJuly, the company said in a statement. The firm wants to issue shares worth approximately €200 million. The firm’s sole bookrunner for the Polish IPO is Citi, while Erste Bank and Raiffeisen will act as co-lead managers of the debut. Alpha Bank will also form a part of its sales consortium. The Dutch investor is planning to spend the bulk of the funds it raises (some €106.1 million) on building its real estate portfolio by acquiring

ki from CC Group told WBJ that “Since this is a newly formed entity, the purchase will be financed entirely from funds raised through its Warsaw IPO.” With the IPO proceeds the company also wants to pay off bank loans (€44.3 million) incurred for its Warsaw debut and finance the further purchase of real estate assets (worth about €41.1 million). Some €8.5 million will be paid out as commissions and other expenses related to the company’s IPO, while €2 million will cover various corporate expenses, the company said. The firm is not planning to engage in developing new projects or purchasing land. Meridian Properties is registered in the Netherlands as a Real Estate Investment Trust (REIT). The company wants to focus on investing in and managing high-quality real estate assets in Europe’s emerging markets.

prises 139,462 sqm of GLA. It is made up of six office buildings with a total area of some 64,000 sqm, as well as six retail parks comprising approximately 76,000 of GLA. According to the investor, the market value of the portfolio was estimated at €238.9 million as of March 31, 2013, with the office properties accounting for 62 percent of the sum. The company wants to spend just €106.1 million on the acquisition, but has refused to specify the details of the transaction or say whether it was buying a share of the portfolio before publishing its IPO prospectus. However, the firm’s PR representative Piotr Piotrows-

Beata Socha

COURTESY OF CC GROUP

Dutch real estate investor to hold IPO on WSE

The Autounion office complex in Sofia, Bulgaria is the biggest office scheme (19,476 sqm) in the portfolio the company is eying

Office

Demolition of Sezam to move forward

Renovation complete on two major downtown Warsaw office schemes

Failed opposition

COURTESY OF BBI DEVELOPMENT

Warsaw Stock Exchange-listed BBI Development can begin demolition of one of Warsaw’s signature retail facilities, Sezam, now that administrative permits have been issued to allow for it. As of press time, the developer was scheduled to start pulling down the walls of the underground levels of the shopping center, located at the intersection of ul. Marsza∏kowska and ul. Âwi´tokrzyska in the heart of the Polish capital, at the end of June.

by Juvenes Project architects, the scheme, which BBI Development NFI will complete in cooperation with the “Spo∏em” ÂródmieÊcie cooperative, will be the first building in Warsaw with direct access to a subway station.

The work could take several weeks. The building’s basement will provide direct access from the Nowy Sezam mixeduse complex, which is to be erected in place of the old retail center, to a nearby subway station. Tenants of the building will therefore have a direct connection with the subway lines that intersect there. After removing the walls on the underground levels and building a passage to the station, the demolition of the above-ground structure could start at the beginning of 2014 after BBI obtains a building permit. The construction of the Nowy Sezam office building will be launched in the first months of 2014. Nowy Sezam will deliver 13,500 sqm of office and retail space on 10 floors. Designed

A visualization of the new Sezam scheme

Since its planning stages, the project has been surrounded by controversy and opposed by the residents of the neighboring building on ul. Moniuszki 10, who did not want the new scheme to block views from their windows. The project got the green light in March this year, when the Voivodship Administrative Court dismissed a complaint from a homeowners’ association aimed at stopping the demolition. Before filing the complaint with the court, the association had tried to intervene with the local government appeals council last summer, where the motion was also dismissed. The Sezam retail center is one of Warsaw’s landmarks. Completed in 1969 and commonly referred to as Warsaw’s luxury shopping center of the communist era, it was one of the elements of the Eastern Wall of the city’s downtown. BBI Development NFI is currently also involved in projects in Warsaw including the construction of the Plac Unii mixed-use high-rise building. Karolina Kowalska

UBS will hand over the two buildings for use in the fall Investor UBS Real Estate Kapitalanlagegesellschaft mbH has completed renovation of its two office buildings, Chmielna 134 and Koszykowa 54, located in downtown Warsaw. Both buildings were constructed in the mid-1990s. The renovation, which commenced in 2012, involved redeveloping the main reception foyers and common areas as well as refurbishing the buildings’ facades and interiors. Electrical, heating and airconditioning installations were

COURTESY OF UBS

Tearing down the wellknown shopping center will allow BBI Development to begin development of a new mixed-use scheme in its place

Koszykowa 54

replaced with new ones, as was the flooring. The buildings are scheduled to be handed over for use in the fall of this year. The six-storey Chmielna 134 offers a total of 14,000 sqm of office and retail space. Koszykowa 54 is a sevenstorey building comprising some 10,000 sqm of office space and 750 sqm of retail space. Both buildings have underground parking lots. Both buildings offer direct access to public transportation, as numerous bus and tram routes intersect this area. The SKM line (urban train system) is also located near the Chmielna 134 scheme, as

is a future station of Warsaw’s second subway line. The owner of the buildings, the UBS (D) Euroinvest Immobilien fund, managed by UBS Real Estate Kapitalanlagegesellschaft mbH, also holds the Ilmet building in Warsaw’s downtown in its portfolio. It is currently working on a project that involves replacing the existing structure with a modern, much taller, skyscraper. UBS officials plan to apply for a building permit by the end of this year and the demolition of the building should start in 2014. Karolina Kowalska

THE LIST

www.wbj.pl

JUNE 24 – JULY 7, 2013

Motor Industry & Freight

Transport, Shipping and Logistics Ranked by revenue from primary activity in 2012

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

Services

Freight

Freight Number of shipper branches / insurance Total TPL / number of Carrier / employees / Cargo / Year ISO founded in certificate Poland

2,018.0 1,665.0 1,255.0 1,108.0

WND WND WND WND

✓ ✓ ✓

✓ ✓ -

E-commerce; services for fresh products (controlled temperature); intermodal transport; contract logistics

✓ ✓ ✓

ECR; System Alliance Europe; ZMPD; Polish Chamber of Commerce for Road Transport and Shipping; Pol-risk Risk Management Association; Polish-German Chamber of Commerce; Polish International Freight Forwarders Association; GFG; PolishCanadian Chamber of Commerce; Polish-Indian Chamber of Commerce; Polish-Dutch Chamber of Commerce; Polish-British Chamber of Commerce

777.0 785.8 739.9 577.3

788.7 794.0 756.5 593.0

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓ -

Storage; distribution; border forwarding services; transshipment; packaging; containers; ferry booking

✓ ✓ ✓ ✓

FIATA; IBS; PISiL; IGTL; ZMPD; KIG

✓ ✓

WND

746.1 670.5 375.4 397.5

747.8 670.5 640.3 600.0

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓ -

Co-packing; comanufacturing; consignment storage

✓ -

WND

✓

WND

✓ ✓ ✓

9 2,700 1995

None WND

Piotr Sukiennik

DPD Polska Sp. z o.o. ul. Mineralna 15, 02-274 Warsaw 4 22 577-5500/22 577-5500 dpd@dpd.com.pl www.dpd.com.pl

669.0 617.0 536.0 473.0

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓ ✓

WND

✓ ✓ ✓ ✓

WND

✓

✓ ✓ ✓

WND

✓ ✓ ✓ ✓

WND WND 1991

None GeoPost Group - 100%

Rafa∏ Naw∏oka

ROHLIG SUUS Logistics SA ul. Jana Paw∏a II 66, 05-500 Piaseczno 5 22 737-7575/22 737-7500 office@suus.pl www.suus.pl

465.2 491.8 403.3 282.0

664,339 580,327 542,058 406,394

✓ ✓

✓ ✓ -

Cargo projects; Business Process Outsourcing

✓ ✓ ✓ ✓

IATA; PISiL; Polish-German Chamber of Commerce; Polish Business Roundtable Club

✓ ✓

✓ ✓ ✓

General Motors; Philip MorrisBeko; LG; Zelmer

✓ ✓ ✓

WND 760 1990

Tadeusz Chmielewski None

GEFCO Polska Sp. z o.o. Pl. Bankowy 2, 00-095 Warsaw 6 22 531-2177/22 531-2173 siedziba.waw@gefco.pl www.gefco.pl

458.4 441.5 407.1 331.7

239,186 189,600 50,470 42,601

✓ ✓ ✓

✓ ✓ -

Packaging; co-packing

✓ ✓ ✓ ✓

French Chamber of Commerce and Induystry in Poland; PSML; PISiL; PIM

✓ ✓ ✓

PSA; GM; Toyota; Ford; Nissan

✓ ✓ ✓ ✓

10 335 1999

PEKAES SA ul. Spedycyjna 1, 05-870 B∏onie 7 22 460-2626/22 460-2727 kontakt@pekaes.com.pl www.pekaes.com.pl

456.3 462.0 415.9 360.2

484.9 552.6 563.8 471.9

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓ ✓

WND

✓ ✓ ✓

FIATA; IATA; PISiL; ProLogistyka Association; ZMPD

✓ -

✓ ✓

Arctic; Brenntag; Stock Polska; Cenos

✓ ✓ ✓ ✓

17 690 1958

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

Revevenue from primary activity (z∏. mln)

Total revenue (z∏. mln)

Total number of shipments

2012 / 2011 / 2010 / 2009

Grupa Raben ul. Zbo˝owa 1, 62-023 Robakowo 1 61 898-8000/61 898-8801 poland.info@raben-group.com www.raben-group.com

Przedsi´biorstwo Spedycyjne Trade Trans Sp. z o.o. ul. Leszno 12, 01-192 Warsaw 2 22 534-0300/22 534-0400 pstt@tradetrans.pl www.tradetrans.pl

FM Polska Sp. z o.o. (FM Logistic) ul. ¸ugowa 30, 96-320 Mszczonów 46 857-0001/46 857-0005 fmlogistics@fmlogistic.pl www.fmlogistic.com

Freight / Warehousing / Customs / Courier

Membership in freight organizations

Rank

Transport: Road / Air / Rail / Sea

Activities: Transport / Shipping / Logistics

A guide to Polish business and industry

Other

Mass Parcels / cargo / Customs Oversize parcels / cargo LCL cargo

Selected clients

Ownership: Polish / Foreign

✓ ✓

WND

✓ ✓ ✓ ✓

55 4,500 1991

None Raben Group - 100%

✓ ✓ ✓ ✓

9 585 1990

PKP Cargo Trade Trans Invest

Top local executive / Title

Ewald Raben CEO

Sylwester Pruchniewski President

General Director

President

Daniel Franke; Karol Miszta; Andrzej Koz∏owski; Rafa∏ Szyd∏owski Board Members

None GEFCO - 100%

Olivier Large General Director

KH Logistyka - 58.1%; ING OFE - 7.6%; Bank Gospodarstwa Krajowego Maciej Bachman - 5% None

JAS-FBG SA ul. Kolejowa 17, 40-706 Katowice 32 359-3593/32 359-3577 marketing@jasfbg.com.pl www.jasfbg.com.pl

438.9 414.9 347.1 278.8

441.7 417.6 347.1 278.8

699,972 669,677 486,160 369,482

✓ ✓ ✓

✓ ✓ ✓ -

International trade mediation; Intrastat; excise

✓ ✓ ✓ ✓

FIATA; IATA; ZMPD; PISiL

✓ ✓

WND

✓ ✓ ✓ ✓

111 916 1991

WND None

Jaros∏aw Domin

Kuehne + Nagel Sp. z o.o. ul. Spedycyjna 1, 62-023 Gàdki 61 819-9100/61 817-0813 info.poznan@kuehne-nagel.com www.kuehne-nagel.pl

427.4 367.8 342.4 282.2

WND WND WND WND

✓ ✓

✓ ✓ -

WND

✓ ✓ ✓ ✓

PISiL; Polish German Chamber of Commerce and Industry; Polish-Swiss Chamber of Commerce

✓ ✓

✓ ✓ ✓

Bosch; Danone; OBI; Coming; Unilever

✓ ✓ ✓

18 1,800 1992

None WND

Tobias Jerschke

Integer.pl SA ul. Malborska 130, 30-624 Kraków 10 12 619-9800/12 619-9801 biuro@integer.pl www.integer.pl

281.9 249.0 202.4 135.9

200,000,000 144,000,000 123,500,000 70,000,000

✓ ✓ ✓

WND

✓ -

Polish Confederation of Private Employers - Independent Postal Services Providers

✓ -

✓ ✓

Carrefour; Lidl; MediaMarkt; Obi; Rossmann

✓ ✓ -

900 983 2006

Generali OFE - 9.7%; Nordea - 1.5%; A&R Investments - 38.8%; LSS Holdings - 7.5%

Fresh Logistics Sp. z o.o. ul. Zbo˝owa 1, 62-023 Robakowo 11 61 898-8400/61 898-8450 freshlogistics@raben-group.com www.freshlogistics.com.pl

255.3 230.5 191.1 168.0

WND WND WND WND

✓ ✓ ✓

✓ ✓ -

Comprehensive logistic services in controlled temperature of 2 to 6 degrees Celsius

✓ -

WND

✓ ✓

WND

✓ ✓ ✓ ✓

8 600 2002

None Raben Group - 100%

Hellmann Worldwide Logistics Polska Sp. z o.o., Sp.k. ul. Soko∏owska 10, 05-090 Raszyn 12 22 717-9797/22 717-9704 info-pl@pl.hellmann.net www.hellmann.pl

211.4 185.2 164.7 141.5

WND WND WND WND

808,765 666,436 633,156 533,828

✓ ✓ ✓

✓ ✓ ✓ -

Added services (VAS); participation in recycling process

✓ ✓ ✓

Polish-German Chamber of Commerce and Industry; Hellmann Network; ProLogistyka Association; System Alliance Europe

✓ ✓

✓ ✓ ✓

WND

✓ ✓ ✓ ✓

10 380 1997

None Hellmann Worldwide Logistics & Co

President

Rafa∏ Brzoska President

Ewald Raben; Tomasz Olenderek CEO; Managing Director

Juliusz Skurewicz President

THE LIST

JUNE 24 – JULY 7, 2013

Services

196.6 182.5 153.8 131.9

211.0 195.1 162.6 139.3

WND WND WND WND

✓

Sales, service and rental of forklift trucks

CAT LC Polska Sp. z o.o. ul. O˝arowska 40/42, 05-850 Duchnice k. O˝arowa Mazowieckiego 14 22 721-7800/22 721-7802 handlowy@groupecat.com www.groupecat.pl

192.0 183.0 171.0 160.0

192.0 183.0 171.0 WND

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓ ✓

Express transport; dedicated offer for motorcycles

✓ ✓ ✓

LINK Sp. z o.o. ul. Nadrzeczna 17, 05-462 Wiàzowna 15 22 769-6900/22 769-6969 link@link.waw.pl www.link.waw.pl

186.0 170.0 111.6 111.3

WND WND WND WND

34,512 29,651 25,000 27,600

✓ ✓ -

✓ -

Just in time; tracking & tracing

Spedimex Sp. z o.o. Sosnowiec 15A, 95-010 Stryków 16 42 616-4100/42 616-4109 spedimex@spedimex.pl www.spedimex.pl

123.6 97.7 WND WND

126.9 100.5 WND WND

317,350 197,664 WND WND

✓ ✓ ✓

✓ ✓ ✓ -

Raben Sea & Air Sp. z o.o. ul. Zbo˝owa 1, 62-023 Gàdki 17 618 988-580/61 898-8801 biuro@raben-sea-air.com www.raben-sea-air.com

115.9 22.6 WND WND

WND WND WND WND

✓

cargo - partner spedycja Sp. z o.o. ul. 3 Maja 8/D1, 05-800 Pruszków 18 22 433-1880/22 433-1810 plpzk@cargo-partner.com www.cargo-partner.com

110.7 88.8 91.0 67.0

73.3 62.7 91.0 47.9

51,694 47,866 41,858 18,182

C. Hartwig Szczecin Spedytorzy Mi´dzynarodowi Sp. z o.o. ul. Jana Kazimierza 3, 71-620 Szczecin 19 91 480-6700/91 480-6732 management@hartwig.szczecin.pl www.hartwig.szczecin.pl

100.8 100.6 83.9 73.4

ZTE Radom Sp. z o.o. ul. Toruƒska 7, 26-600 Radom 29 48 341-1200/48 341-1300 zte@zte.com.pl www.zteradom.pl

79.0 76.0 65.0 70.0

Spedycja Mi´dzynarodowa Agroland Sp. z o.o. ul. Hutnicza 1, 81-212 Gdynia 21 58 660-5101/58 660-5179 o.trojankowski@agroland.com.pl www.agroland.com.pl

Revevenue from primary activity (z∏. mln)

Total revenue (z∏. mln)

Total number of shipments

2012 / 2011 / 2010 / 2009

Transport: Road / Air / Rail / Sea

Freight / Warehousing / Customs / Courier

Toyota Material Handling Polska Sp. z o.o. ul. Potockiego 1A, 96-313 Jakrotów 13 22 753-2000/22 753-2001 info@pl.toyota-industries.eu www.toyota-forklifts.pl

Rank

Activities: Transport / Shipping / Logistics

Freight

Other

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

www.wbj.pl

Membership in freight organizations

Mass Parcels / cargo / Customs Oversize parcels / cargo LCL cargo

Selected clients

Freight Number of shipper branches / insurance Total TPL / number of Carrier / employees / Cargo / Year ISO founded in certificate Poland

Ownership: Polish / Foreign

Top local executive / Title

4 277 2001

None WND

WND

✓ ✓ ✓

9 270 1994

None Manuel Antelo

WND

✓ ✓ ✓ ✓

4 431 1989

A. Ellert - 100% None

Ryszard Ellert

✓

✓ ✓

WND

✓ ✓ ✓ -

8 793 1993

Spedimex - 100% None

Marcin Bàk

Global Freight Group; Global Logistics Family; FIATA; PISiL

✓

WND

6 32 2007

None Raben Group - 100%

Ewald Raben; Sebastian Szlegel

✓ ✓ ✓

IATA; FIATA; ILN; WFA

✓ ✓

✓ ✓ ✓

Danfoss Poland; Decoratum; Partner Telekon; TCC Global; Top Gifts

✓ -

8 151 1998

None Multitransport und Logistik - 100%

Managing Director

Customs warehouse

✓ ✓ ✓ ✓

FIATA; PISiL

✓ ✓

WND

✓ ✓ ✓

5 206 1918

Employees partnership 100% None

WND

✓ -

ZMPD, IP-HZR, Business Center Club

✓ ✓

Electrolux; Federal Mogul; ABB; Alstom; MAN

✓ ✓ -

WND 293 1973

Andrzej Celej - 50.3%, Zbigniew Sadowski 16.5% None

✓ ✓ ✓

✓ ✓ -

WND

✓ ✓ ✓

PISiL; Combined Freight Network

✓

✓ ✓

Logstor; Ciech; Balexmetal; Stolzle; Mac Geer

✓ ✓ ✓ -

WND 39 1992

WND

32,968 35,545 33,369 31,350

✓ ✓ -

WND

✓ -

ZMPD

✓ -

✓

Kreisel-Technika Budowlana; Wieneberger; Ceramika Parady˝; Baumit; CTL Kolzap

✓ ✓

7 48 1999

Zbigniew Dàbrowski 24%; Andrzej Bobiƒski 25%; Ireneusz Piƒczak 25%, Jacek Bobiƒski 25% None

13.1 12.6 12.5 10.5

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓ -

WND

✓ ✓ ✓ ✓

ZMPD; TRLN; CONQUEROR

✓ ✓

✓ ✓ ✓

WND

✓ ✓ ✓ -

1 36 1987

Marek Chyla; Jacek Chyla - 100% None

1.2 0.9 1.0 WND

WND WND 268 WND

✓ ✓

✓ -

WND

✓ ✓

ZMPD

✓

✓ ✓

Elkem; Lemann; Mostostal; Folkord; RESZ Gdaƒsk

✓ -

WND WND WND WND

✓ ✓ ✓

✓ ✓

WND

✓ ✓ -

FPE; Partnerstwo dla Bezpieczeƒstwa Drogowego

✓ ✓ ✓

WND

PIM; PISiL

✓ ✓

✓ ✓ ✓

✓ -

ZMDP

✓ -

Contract logistics; comprehensive services for clothing sector; labeling; co-packing; packing

✓ -

PISiL

✓ -

Sea and air shipping

✓ ✓ ✓

✓ ✓ -

WND

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓ -

82.0 78.0 65.0 73.0

17,000 16,600 15,600 15,000

✓ ✓ ✓

46.2 49.6 45.1 45.7

46.8 50.0 45.1 45.7

15,700 15,800 15,484 10,500

PPSKiZ Transmeble Poznaƒ Sp. z o.o. ul. ¸acina 1, 61-132 Poznaƒ 22 61 283-9315/61 283-4671 spedycja@transmeble.com www.transmeble.com

35.7 35.3 31.2 27.5

35.7 35.3 31.2 27.6

BUS Biuro Us∏ug Spedycyjnych Sp.j. J. Chyla, M. Chyla ul. Dzia∏kowa 117, 02-234 Warsaw 23 22 868-4700/22 868-4701 biuro@bussped.pl www.bussped.pl

13.1 12.6 12.5 10.5

AFG International Transport & Spedition Sp. z o.o. ul. Pó∏nocna 15L, 04-763 Warsaw 24 60 385-6598/46 832-5200 afg@afg.com.pl www.afg.com.pl

DHL Express (Poland) Sp. z o.o. ul. Osmaƒska 2, 02-823 Warsaw NR 22 565-0000/22 565-0001 obsluga_klienta@dhl.com www.dhl.com.pl

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was conducted in March 2013. Number of employees and ownership structure are as of March 2013. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

3 1994

WND 2,700 2003

Julita Góral - 10% Age Schie - 1%; Frank Johnson - 44%; Mine Christine Schie - 15%; Tom-Ludvig - 15%, TorAinar Schie - 15%

None Deutsche Post International - 100%

Dariusz Wojcieszek Managing Director

Rafa∏ Krajewski Business Unit Manager CEE

President

CEO; Managing Director

Stanis∏aw Bochenek

Jerzy Wójtowicz President

Andrzej Celej President

Wojciech Miotke President

Zbigniew Dàbrowski President

Marek Chyla; Jacek Chyla Owners

Julita Góral Director

Tomasz BuraÊ 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. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to +48 22 257-7500, or via e-mail to online@bookoflists.pl. Copyright 2013, 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.

MARKETS

www.wbj.pl

JUNE 24 – JULY 7, 2013

Stocks report

world stock indices DJIA

NASDAQ

S&P500

FTSE100

DAX

3,364.64 (June 20 close)

1,588.19 (June 20 close)

6,116.17 (June 21 close)

7,789.24 (June 21 close)

13,230.13 (June 21 close)

-2.75% (for the week)

-2.34% (for the week)

-2.94% (for the week)

-3.05% (for the week)

-4.17% (for the week)

4.28% (for the week)

CHANGE: 10.03%

Biggest loser

NIKKEI

14,758.32 (June 20 close)

(year to June 20)

CHANGE: 8.11% (year to June 20)

CHANGE: 8.60% (year to June 20)

CHANGE: 1.47% (year to June 21)

CHANGE: 0.13% (year to June 21)

CHANGE: 23.78% (year to June 21)

52-week high: 15,542.40

52-week high: 3,532.04

52-week high: 1,687.18

52-week high: 8,557.86

52-week high: 8,553.74

52-week high: 15,942.60

52-week low: 12,450.17

52-week low: 2,810.80

52-week low: 1,309.27

52-week low: 6,096.94

52-week low: 8,328.02

The penultimate week in June was a difficult one for investors on Warsaw Stock Exchange. The bourse’s main WIG index lost 7.33 percent for the entire week, while the blue-chip WIG20 shed nearly 10 percent. The numbers made the WSE a leader in Europe – but not in an admirable category. Only indices in Greece lost more, which was little surprise given that the country is on the verge of bankruptcy yet again. The biggest culprit of the fall was copper miner KGHM, which lost over 20 percent during the week. The steep drop started midweek when the mining giant announced it would pay out a record-high dividend, amounting to some z∏.1.96 billion. The decline continued the next day, when disappointing PMI results for China, the world’s largest

Major indices WIG

44,732.92 (June 21 close)

WIG20

2233.64 (June 21 close)

Change for the week: -7.33%

52-week high: 48,572.75

Change for the week: -9.88%

52-week high: 2,634.18

Change year to June 21: -7.02%

52-week low: 38,810.22

Change year to June 21: -14.95%

52-week low: 2,089.08

2600

49,000

2520

48,000

2440

47,000

2360

46,000

21.06

20.06

19.06

18.06

17.06

14.06

13.06

12.06

11.06

10.06

07.06

06.06

05.06

04.06

03.06

31.05

29.05

28.05

24.05

21.06

20.06

19.06

18.06

17.06

14.06

13.06

12.06

11.06

10.06

07.06

06.06

05.06

04.06

03.06

31.05

29.05

28.05

27.05

2200 24.05

44,000

27.05

2280

45,000

Top 5 MEWA ELKOP NORTCOAST PWRMEDIA BETACOM

Closing 0.27 0.15 0.78 1.42 6.04

% change (week) 52-week high 28.57 0.35 25.00 0.32 23.81 0.81 18.33 1.45 17.05 6.57

52-week low 0.15 0.10 0.30 0.97 4.46

Top 5 ASSECOPOL BOGDANKA PGE BRE TAURONPE

Closing 44.00 115.00 16.99 368.00 4.06

% change (week) 0.92 -2.13 -4.01 -4.91 -5.14

52-week high 47.66 143.00 19.54 398.00 4.87

52-week low 36.84 110.00 15.11 268.80 3.67

Bottom 5 FOTA GANT CNT NEWWORLDR B3SYSTEM

Closing 1.03 1.70 5.70 3.61 0.37

% change (week) -52.09 -33.85 -27.76 -26.48 -24.49

52-week low 1.00 1.08 4.25 3.46 0.36

Bottom 5 KGHM SYNTHOS PKNORLEN LOTOS PEKAO

Closing 123.00 4.38 45.50 35.51 147.80

% change (week) -20.49 -14.79 -13.66 -13.39 -12.44

52-week high 194.80 6.00 57.40 45.45 164.44

52-week low 109.60 4.29 34.96 24.02 126.53

52-week high 7.00 6.76 9.95 18.68 0.91

sWIG80

EUR/PLN hits yearly high

WIG-Banki

21.06

20.06

19.06

18.06

17.06

14.06

13.06

12.06

11.06

10.06

07.06

06.06

52-week low: 9,149.72

04.06

03.06

31.05

21.06

20.06

19.06

18.06

17.06

30.54 (June 21 close)

52-week high: 12,049.41

6,480.92 (June 21 close)

21.06

20.06

19.06

18.06

17.06

14.06

13.06

12.06

11.06

10.06

07.06

06.06

05.06

21.06

20.06

19.06

18.06

17.06

14.06

13.06

12.06

11.06

6,400

10.06

30.0

07.06

6,520 06.06

30.2

05.06

6,640

04.06

30.4

03.06

6,760

31.05

30.6

29.05

6,880

28.05

30.8

27.05

7,000

24.05

31.0

04.06

52-week low: 5,445.64

03.06

Change year to June 21: -3.60%

31.05

52-week low: 29.82

29.05

52-week high: 6,987.45

Change year to June 21: -8.07%

28.05

Change for the week: -6.63%

27.05

52-week high: 37.05

24.05

Change for the week: -0.10%

SOURCE: WSE

NewConnect

14.06

13.06

12.06

11.06

10.06

07.06

06.06

05.06

10,800

04.06

11,060

2,700

03.06

11,320

2,760

31.05

2,820

29.05

11,580

28.05

2,880

27.05

11,840

24.05

12,100

2,940

29.05

Change year to June 21: 11.08%

28.05

Change for the week: -2.36%

52-week low: 2,204.59

27.05

52-week high: 2,991.59

Change year to June 21: 10.73%

24.05

Change for the week: -3.33%

3,000

Adam Narczewski X-Trade Brokers DM SA

11,698.05 (June 21 close)

05.06

2,844.16 (June 21 close)

Jacek Ciesnowski

Currency report

Other indices mWIG40

copper consumer, were announced. The index fell to the lowest level in nine months. Shares of KGHM, the world’s second-largest copper producer, sank further on the news. Stock exchanges all over the world were hit by Ben Bernanke’s statement that the Fed would likely rein in its quantitative easing policy, and the WSE was no exception. The possible end of easy money sent traders on a selling spree and indices plummeted. One of the exceptions to the rule was Asseco, which gained nearly 1 percent over the course of the week. When it was announced that it had won a tender to build a broadband network for the Mazowieckie voivodship, it regained the losses it suffered in previous days.

The main event of the end of June, the US Federal Reserve’s monetary policy meeting, completely changed the situation in the currency market. Fed chairman Ben Bernanke did not reveal any shocking news, saying only that the Fed would likely begin reducing its program of quantitative easing this year (probably in September) and end it by mid-2014. Traders were even expecting such a strategy, but it was the first time Mr Bernanke had made such a direct declaration. The EUR/USD tumbled from just above $1.34 to levels below $1.32. A corrective movement could bring the main currency pair slightly higher, but in the upcoming weeks we should see the EUR/USD trading lower. In Poland, a vast amount of macroeconomic information was published, but it was ignored by traders as everyone

focused on the Fed. Wages increased by just 2.3 percent year-on-year while industrial production dropped by 1.8 percent y/y. In light of all the recent macroeconomic data from the Polish economy, it seems the Monetary Policy Council has no other choice but to cut interest rates at its July policy meeting. The cut should not hurt the z∏oty much as the market has already priced in lower rates. What hurt the z∏oty, though, was the rush of foreign capital from assets that are perceived as riskier (after Mr Bernanke’s statements). The EUR/PLN quickly advanced to reach z∏.4.35, a yearly high. The USD/PLN climbed to reach z∏.3.27, levels from the beginning of June. Those traveling for vacation abroad could be regretting not buying dollars or euros before their trips, as it seems we will not see a stronger z∏oty any time soon. ●

21.06

3.3421 20.06

SOURCE: NBP

3.3459 19.06

3.3450

3.3292 18.06

17.06

3.30

14.06

3.3327

0.0997 21.06

0.0998

0.0988

PLN-100JPY

3.35

20.06

18.06

17.06

0.0900

19.06

0.1006

0.0994 0.0955

14.06

3.5289 21.06

3.5079

0.0991

PLN-RUB

0.1010

20.06

19.06

3.4453 18.06

3.4368 17.06

14.06

3.4

3.4244

5.0705 21.06

5.0629

3.5

3.4535

PLN-CHF

3.6

20.06

4.9630 19.06

4.9472

4.9720 18.06

17.06

4.9

14.06

3.2743 21.06

3.2693

5.0

4.9851

PLN-GBP

5.1

20.06

3.1777 19.06

3.1682 18.06

17.06

21.06

14.06

3.1654

4.3284

4.3237 20.06

3.1

3.1719

PLN-USD

3.3

4.2563 19.06

4.2180

4.2406 18.06

17.06

14.06

4.2

4.2316

PLN-EUR

4.4

3.3494

currency rates

SPORTS

JUNE 24 – JULY 7, 2013

Boxing

www.wbj.pl

Soccer

Tomasz Adamek to hang Ex-Real Madrid player up his gloves next year to play in Poland?

Tomasz Adamek

hinted he will fight next year as well, but didn’t mention how many bouts he plans to participate in, saying only that 2014 will be the last year of his career. Mr Adamek is a former world champion in light heavyweight and cruiserweight divisions, later moving up to the prestigious heavyweight class in 2009. His most high-profile fight was in 2011, when in Wroc∏aw he was defeated by WBC champion Vitali Klitschko in his only chance at the heavyweight title. Despite losing his biggest fight, Mr Adamek is content with his career. “I lost only twice [to Mr Klitschko and to Chad Dawson, back in 2007, when he was fighting in the light heavyweight division] and won championships in two different weight classes. I consider this a great achievement. I hope my name will be remembered among boxing aficionados and that my fights gave my countrymen both home and abroad a sense of pride and joy,” Mr Adamek concluded in his statement. Jacek Ciesnowski

Former Spanish international Raul Bravo has joined Legia for a trial period Spanish defender Raul Bravo, who enjoyed a six-year stint at one of the biggest clubs in the world – Real Madrid – has joined Polish champions Legia Warszawa, where, for now, he’ll be evaluated by the staff. He will go with the team to Austria for a training camp, and if both sides like what they see, he is expected to sign a deal with the club. Mr Bravo played in Madrid alongside such icons as Zinedine Zidane, Brazil’s Ronaldo and David Beckham, among others. He had trouble breaking into the starting squad, since his main competitor was none other than Brazilian star Roberto Carlos. Still, he played in over 70 matches during his spell with the team. After his time with Madrid, he joined Greece’s Olympiacos, where he played from 2007 to 2011 and where he met Micha∏ ˚ew∏akow, a former Legia defender and current scout for the club, who managed to convince Mr

SHUTTERSTOCK

Polish boxer Tomasz Adamek announced that the next year would be the last of his career. “I expect to finish my career in 2014 in style,” wrote the 36year-old heavyweight on his website. “Years are passing and I don’t want to end up a

living punching bag,” he added. Mr Adamek hasn’t stepped into the ring since December of last year, when he defeated Steve Cunningham in a controversial split decision. He’s scheduled to face Tony Grano on August 3 in Connecticut. He plans to fight once more this year, but neither his opponent nor the date have been decided on yet. Mr Adamek

COURTESY OF TOMASZADAMEK.EU/MIKE GLADYSZ

The former world champion wants to end his career “in style”

Raul Bravo (middle) during his stint with Olympiacos Bravo to try his luck in Poland. Legia is looking for a bigname player after Serbian Danijel Ljuboja, a former PSG striker, left the club after the 2012/13 season. The 32-year-old Mr Bravo enjoyed a successful – though short – international career with Spain, playing 14 games, including every minute of the Euro 2004 campaign. However, those games were his last for the national side. If Mr Bravo joins the Warsaw club, he will undoubtedly

be the most famous player to ever play in the T-Mobile Ekstraklasa. Whether that will translate into great performance is a different story. Mr Bravo’s last club was the Belgian second-tier Beerschot AC – the club was relegated from the top division last year because of financial problems and declared bankruptcy in May. That, and his decision to participate in the Legia trial period, suggest that his days as a top-tier player are behind Jacek Ciesnowski him.

LIFESTYLE

www.wbj.pl

JUNE 24 – JULY 7, 2013

Culture

Music festival

A festival of life

Indie rock heaven

A concert during last year’s Jewish Cultural Festival guest speakers from the US, Europe and Israel will lead discussions on relations between culture, religion, history and identity. Besides these events, a variety of concerts featuring a wide spectrum of music genres will be presented. From classic ceremonial music surrounding Kabbalat Shabbat and Melaveh Malkah to DJ-led parties delivering Jewish avantgarde music, from Yiddish singing to Israeli band Monti Fiori’s performance of Italian songs, as well as surf rock

and Mediterranean rhythms, there will be a good mix of traditional and contemporary Jewish music during the 10day festival. According to the director of the festival, Janusz Makuch, the festival is an opportunity to “pay tribute to the past while thinking unceasingly about the future. Only life can reconcile memory with the future.” In his words, the annual event is “a festival of life.” Cathy Liu

For more information, log on to jewishfestival.pl

COURTESY OF TOMEK KAMIƒSKI/ALTER ART

Since its inception in 1988, the Jewish Cultural Festival in Kraków has grown to become one of the largest celebrations of contemporary Jewish culture in Europe, attracting thousands of spectators from Poland and around the world every year. The festival is hosted in the city’s former Jewish quarter, Kazimierz. This year, more than 100 artists from Poland, Germany, Slovakia, the UK, the US, Israel, Canada and Australia will take part in the festival, presenting a mix of art, history, literature, live performance and crafts. The program includes music events, meetings and presentations, lectures and workshops, guided tours and exhibitions. A series of programs about Jewish history and community in Kraków are planned. They’ll showcase the vibrant history of Jewish presence in the city, including visits to synagogues, the area of the former Jewish ghetto, storytelling and film screenings. Academics and

JEWISH CULTURAL FESTIVAL

23rd Jewish Cultural Festival June 28-July 7 Various sites, Krakow

The Open’er Festival Open’er Festival July 3-6 Gdynia-Kosakowo Airport The biggest Polish music festival is upon us – Heineken’s Open’er. For four days in Gdynia, on the Polish Baltic Sea coast, hundreds of thousands of fans will have a chance to watch some of the best acts that today’s alternative music scene has to offer, with some familiar faces from the past as well. This year the festival will boast a strong British contingent, with bands like Arctic Monkeys, the Editors, Alt-J

and Skunk Anansie performing. The biggest attraction is sure to be the re-formed Blur, with both its leaders Damon Albarn and Graham Coxon sharing the stage. There will be some American “royalty” as well, with Queens of the Stone Age performing and Kings of Leon returning (they first performed in Poland in 2009). There will also be a performance by Modest Mouse. Last but not least, Nick Cave will pay another visit to Poland, this time with his band the Bad Seeds. With other acts, the line-up is impressive,

but the festival has quite a reputation to live up to: it was named Best Major Festival twice, in 2009 and 2010, by the European Festival Awards. But that’s not all. The organizers have booked popstar Rihanna to perform at the same venue the day after the festival officially closes. Everyone who purchased four-day tickets for the event can see the Barbados-born singer for free. Single day tickets start from z∏.189, while the four-day passes can be had starting from z∏.470. Jacek Ciesnowski

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 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 www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.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 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.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

Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.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.wilanow-palac.pl www.postermuseum.pl

Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.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

JUNE 24 – JULY 7, 2013

www.wbj.pl

Tech Eye

Useful apps for Android lovers

ADWLauncher Techeye knows lots of smartphone owners. It’s hard not to, since most people still using dumb-phones are either: a) elderly; b) willfully anachronistic, skeevy hunchbacks; c) dead; or d) some combination of the above. But not all smartphone owners are created equal, we’ve found. Many view their devices the same

way a teenage boy views his first girlfriend – as something to be ogled and occasionally pawed, but otherwise ignored. Here’s the thing: to get the most out of your smartphone, you need apps. Lots of them. And, conveniently, there are apps for practically everything. So this week Techeye is looking at some quintessential apps for Android phones. As for you iPhone owners out there ... well, you’re on your own. Good luck. First up is ADWLauncher, a “home replacement” app that epitomizes Android’s customizability. It allows you to change the stock OS experience to suit your own tastes, in part by letting you choose themed icons, wallpapers and desktop arrangements. Want everything in your phone to be neon pink? No problem. You can also choose from a variety of screen transitions, adjust transition speeds, alter the app drawer, tweak gesture controls, etc. People who hold an entirely utilitarian view of their smartphone won’t care about this. But it’s great for those who like to inject a bit of personality in their tech. The basic version of ADWLauncher is free;

Shazam ADWLauncher EX, which has some extra bells and whistles, costs z∏.11.41. Also, note that ADW themes are available separately on the Play store (some free, some not). ES Task Manager (not pictured) is another great app, in our opinion, and not just because it’s free. This app lets you optimize power con-

sumption, keep an eye on what’s eating your RAM and clean your cache, among other things. But we mainly use it for the widget: a one-touch button that kills all non-essential tasks and indicates how much memory is available. Very handy, that. Shazam (also available for iOS) is a useful app for music lovers. Or music haters. If you’ve ever thought to yourself “Who sings that heavenly song?” or “WTF is that horrible sound that’s ruptured Gran’s colostomy bag?”, know that this app probably could have helped you. It works like this: step 1, turn on; step 2, hold in the direction of music; step 3, wait. That’s it. Be aware that while Shazam recognizes some pretty obscure music, it’s not perfect. In repeated tests the app displayed a shameful ignorance of Captain & Tennille, and knew nothing from Peaches & Herb’s influ- Google Goggles

ential oeuvre. But hey, at least it’s free. And finally, let’s look at Google Goggles, which is essentially the same thing as Shazam but with images. Take a picture of whatever strikes your fancy, select “Goggles” from the “share via” menu and the app searches for similar images online. It also functions as a QR code reader. Its QR functionality aside, Google Goggles can be pretty hit or miss. It easily recognizes Weird Al Jankovich, for example, but show it a picture of former President George W. Bush and you get a “similar” picture titled “Bring me a taco.” On second thought, that’s pretty accurate. ●

Ever rocked out to Captain & Tennille? Let us know: techeye.wbj@gmail.com

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