WBJ #37 2013

Global expansion?

Polish director Patryk Vega explains how you can make a movie without paying a dime 8-9

PKN Orlen plans to acquire Canadian TriOil and enter the exclusive club of oil-producers

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WWW.WBJ.PL

Moving pictures

VOLUME 19, NUMBER 37 • SEPTEMBER 23-29, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

Back to coal Despite ambitious plans to diversify Poland’s energy mix, coal will remain the country’s primary power source 12-13

At the WBJ ’s Investing in Poland 2014 conference, experts and guests discussed why Poland is a good place for investment 14-15

LOKALE IMMOBILIA REAL ESTATE

Is it over for Tusk?

With Civic Platform continuing to trail its rival Law and Justice in the polls, WBJ asks experts if there’s anything PM Donald Tusk can do to reverse the trend

• Galeria Katowicka • Retail market boom • Warehouse expansion 17-19

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In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . .12-13 Investing in Poland . . . . . . . .14-16 Lokale Immobilia . . . . . . . . . .17-19 Markets . . . . . . . . . . . . . . . . . . . . .20 The List . . . . . . . . . . . . . . . . . . . . . .21 Sports . . . . . . . . . . . . . . . . . . . . . . .22 Lifestyle . . . . . . . . . . . . . . . . . . . . .23

Enter the Dragon

SHUTTERSTOCK

Chinese machine manufacturer announces plans to debut on the Warsaw Stock Exchange in historic first 5

NEWS

www.wbj.pl

z∏.735.7 million is how much PKN Orlen will pay to acquire 100 percent in Canadian oil company TriOil Resources

1.1% was Poland’s CPI inflation rate in August, in line with expectations, according to the Central Statistical Office

17%

Autosan files for bankruptcy

Quote of the Week “Poland’s economy is recovering after a phase of weakness and may grow more than the government and central bank predict.”

Deputy Finance Minister Jacek Dominik speaking on economic growth at a conference.

Figures in focus Tower of Babel Languages spoken in plenary sessions of European Parliament (in %, September 2009-February 2013) 30 29.1*

25 20 15

9.5

10

Greece has been out of the news in recent months. But that could change soon as another crisis looms. Log on to WBJ.pl for an analysis by Ashoka Mody, a former mission chief at the International Monetary Fund.

8.5

7.7

5.8

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1.8

1.2

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0.3

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Greece again

*Highest in EP **Lowest in EP

13.6

Jacek Ciesnowski

On WBJ.pl

Source: European Parliament

Company index Air France KLM ..........................................4 Peixin ..........................................................5 Arcad..........................................................19 PGE ............................................................13 Autosan........................................................2

PKN Orlen................................................2, 5

Bank Pekao ........................................15, 20

Calendar

September 24-25 PROPERTY FORUM Event:

Autosan, a well-known Polish bus and coach producer, said that it has filed for bankruptcy. The company has been in a restructuring process for the past year, but savings and increasing efficiency have not been enough to change its financial standing. The bus producer has been generating increasing net losses since 2009. As the number of new orders was not sufficient, there will most likely be a loss in 2013 too, the company said. ●

spokesperson Jay Carney acknowledged “dramatic” shifts in Teheran’s language but stressed the need to see its words matched by its actions.

When asked if the two leaders would meet in New York, he replied: “We will see. It has always been possible.”

Antigua and Barbuda’s John William Ashe, who was chosen as the president of the Assembly, said that he’d like to initiate UN Security Council reform, which as the recent Syrian crisis showed yet again, has troubles reaching any agreements. Critics say the Council, established in 1945, does not reflect the realities of today’s world and many powerful nations, like Germany or India, are not represented on it.

lian

Poland’s marine ports plan to invest z∏.10 billion in 2014-2020, far more than the z∏.4 billion they spent on investments in 2007-2013. These amounts include both the country’s own resources and EU funding. Major investments, worth about z∏.700 million, are planned in the Port of Gdaƒsk. The Port of Gdynia plans investments worth z∏.600 million.

genocide in the war-torn Darfur region. As of press time, the US authorities hadn’t announced its decision whether to grant the Sudanese leader a visa.

While the session’s theme is “The Post 2015 Development Agenda: Setting the Stage,” most expect that the situation in Syria will dominate the discussion. Others point to a possible meeting between US President Barack Obama and recentlyelected Iranian leader Hassan Rouhani. Back in June, President Obama sent a letter to President Rouhani, congratulating him on his election victory.

Mr Rouhani called this move “positive and constructive” and in a recent interview with NBC said that his country had no intention of going forward with its military nuclear program.

White House

Ita

The general debate of the 68th General Assembly (the only principal organ of the UN in which all member nations have equal representation) will run from September 24-27 and September 30-October 1. Representatives from 193 countries have been invited to arrive at the summit (Poland will be represented by President Bronis∏aw Komorowski), however there might be some notable absences.

Hague-based International Criminal Court (ICC) has asked US authorities not to grant Sudanese President Omar alBashir a visa necessary to enter the country. As the host of UN summits, Washington is expected to grant entrance to any head of state wishing to attend the US on UN business. Mr al-Bashir is sought by the ICC on charges of

is by how much (year-on-year) production of large household appliances grew in July, which makes Poland one of the European leaders in white goods manufacturing

an

Polish ports to invest billions

is how much the average monthly salary in Poland grew in August y/y, according to the Central Statistical Office, a percentage point less than economists had expected

Fre nch

“Wa∏´sa. Man of Hope,” a film by one of Poland’s best-known movie directors Andrzej Wajda, will be Poland’s candidate for the Academy Award for Best Foreign Language Film, the Polish Film Institute announced.

The movie premiered at the Venice Film Festival in early September. It will be screened in Polish cinemas starting on October 4.

2%

UN General Assembly

rm

Wa∏´sa biopic to run for Oscar

Numbers in the News

Ge

Poland fell from the 59th to the 48th position in this year’s World Economic Freedom ranking, the Adam Smith Center said at a press conference. Out of 152 countries in the ranking, the top two ones this year were Hong Kong and Singapore. The situation in Poland remained stable despite a drop in the ranking, Andrzej Kondratowicz from the Adam Smith Center said. The country was awarded 7.2 points out of 10, compared to 7.31 points in 2012.

IN THE SPOTLIGHT

En glis

Poland drops in economic freedom ranking

SEPTEMBER 23-29, 2013

COURTESY OF WIKIMEDIA COMMONS

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Location:

With some 800 participants the forum is the largest event devoted to the commercial property sector in Poland. Owners and managers of shopping centers, office buildings, warehouses and hotels will take part in debates and discussions.

Sheraton Hotel, Warsaw

Location:

Web:

Polish Defense Holding ..............................4

CBRE..........................................................15 Port of Gdynia..............................................2

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THE POLISH PHENOMENON: WHAT’S NEXT FOR EUROPE’S NEW POWERHOUSE?

Web:

This conference will feature panel discussions on Poland’s successful managing of the financial crisis, while also trying to map a way forward for the CEE’s biggest economy. The keynote speaker will be Marek Belka, head of the National Bank of Poland.

The Kosciuszko Foundation 15 E 65th Street, New York, NY 10065 thekf.org

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POLISH CONGRESS OF RENEWABLE ENERGY

Event:

The congress aims to present the latest forecasts and economic data, as well as legal and practical aspects of investing in renewable energy sources in Poland, with a special focus on integration of the community interested in renewable sources of energy.

City Hotel, Bydgoszcz zielonastronamocy.eu/en/

Event:

Location:

Economists, entrepreneurs and executives from all over the world will join forces with the most eminent intellectuals and individuals from the world of culture and academia along with social activists and politicians to seek meaningful solutions to the most fundamental economic and political problems facing Europe.

Sheraton Hotel Conference center, Sofitel Grand Sopot efni.pl

Brown Brothers Harriman........................14

PKP ............................................................17

BZ WBK ......................................................7 Port of Gdaƒsk ............................................2

25-27 EUROPEAN FORUM FOR NEW IDEAS 2013 Event:

BRE Bank ..................................................20

Location: Web:

Citi Handlowy ............................................20

PwC............................................................14

Cushman & Wakefield ..............................19 Randstad....................................................14 Dentons......................................................14 Dong Energy ..............................................13

Samsung......................................................6

Echo Investment........................................19 Sii ..............................................................15 Energa........................................................13 Sollers Consulting ....................................15 Exxon Mobil ..............................................12

Strabag ......................................................17

GFK ..............................................................6 SUD Architekt ............................................17 Ghelamco ..................................................19 Goldman Sachs ........................................14

Talisman Energy........................................12

Homo Homini ..............................................3 TNS Polska ..................................................3 Huta Stalowa Wola ......................................4 TP ................................................................6 Iberdrola ....................................................13 Jones Lange LaSalle ................................17

Transition Technologies ............................15 TriOil Resources ......................................2, 5

Kompania W´glowa ..................................13 Marathon Oil..............................................12

Warsaw Stock Exchange ......................5, 19

Neinver ......................................................17 Wojskowe Zak∏ady Mechaniczne ................4 Noble Securities SA ..................................20 X-Trade Brokers ........................................20

NEWS

SEPTEMBER 23-29, 2013

www.wbj.pl

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Politics

Nationalist Law and Justice retains lead over ruling party The right-wing opposition party Law and Justice (PiS) is currently backed by 39 percent of Poles, while the ruling center-right Civic Platform (PO) has the support of 30 percent of voters, according to a September TNS Polska poll.

The Democratic Left Alliance (SLD) enjoys 14 percent support while current junior coalition partner, the Polish People’s Party (PSL), and Palikot’s Movement (RP) would each pool 6 percent support if elections were held today, thereby crossing the 5 percent threshold needed to make it into Poland’s lower house of parliament, the Sejm.

Another September poll had PiS with 30 percent support and PO at 25 percent. SLD again came in third with 8 percent while PSL and RP would just barely scrape into parliament, with 5 percent support.

How the support is divided Support for Poland’s two largest parties varies widely among demographic groups.

PiS is very popular with the 65+ group where it enjoys 45

percent support while PO is more popular with those between the ages of 35 and 44 where it has 30 percent backing, according to TNS Polska.

PiS is also the party of choice for Poles with a primary-school education among whom it enjoys 41 percent support while PO is backed by 30 percent of those who have a secondary or higher education.

However, irrespective of how political support is divided amongst Polish voters, one factor has remained constant in recent months: within the electorate as a whole PiS is now more popular than PO.

A sure trend So is the ruling party now on an irreversible downward spiral?

“This trend will continue and maybe even deepen as long as Civic Platform continues to act in the same manner as it has been acting up till now,” said Janusz Czapiƒski, a professor of social psychology and political commentator.

“They’ve brought no positive changes to people’s lives

Smolensk experts controversy A war of words erupted between politicians from Law and Justice (PiS) and the Polish military prosecutor’s office after the latter revealed testimony it had gathered from members of a PiS-led parliamentary commission investigating the causes of the 2010 Smolensk catastrophe in which President Lech Kaczyƒski and 95 others perished.

Last week, daily Gazeta Wyborcza published leaked transcripts of military prosecutors’ questioning of parliamentary commitee members who suggest that the late Polish president, a co-founder of PiS, had in fact been assassinated, most likely on the orders of the Kremlin.

According to the disclosed testimonies, which were taken this year, one member of the committee, which is made up mostly of academics, told prosecutors that his expertise in investigating plane crashes comes from constructing model airplanes in his childhood. Another of the committee’s members reportedly said he knew a lot about how planes were constructed because he had closely observed the wings of planes while on passenger flights.

The leaked testimonies caused a furore in the Polish media. Antoni Macierewicz, PiS MP and head of the parliamentary investigative committee, defended his colleagues. He called the revelations part of a “brutal witch hunt targeted at Polish academics.” Mr Macierewicz also reaffirmed his earlier statement that “the Polish pilots [of the Tu-154 plane] were led to their deaths,” and that “an explosion occurred” on the plane.

Meanwhile, Marcin Maksjan, a spokesman for the Military Prosecutor’s Office, stated later that “not one member” of Mr Macierewicz’s team was able to present evidence supporting their theories on the disaster.

Official Polish and Russian reports have stated that the Smolensk plane crash was an accident but PiS politicians have continued to cast doubt on those findings.

Roughly a third of Poles believe that Lech Kaczyƒski was assassinated in Smolensk, according to a Homo Homini survey taken on the third anniversary of the tragedy in April this year.

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COURTESY OF WIKIMEDIA COMMONS AND KPRM

The biggest opposition party has continued to outperform Civic Platform in recent opinion polls. Is this now an irreversible trend?

Jaros∏aw Kaczyƒski, leader of PiS and Prime Minister Donald Tusk, leader of PO and a long-promised cabinet reshuffle has been postponed several times,” added Mr Czapiƒski.

Mr Czapiƒski said if the ruling party wants to make a comeback it has to do a “thorough analysis” of the voters who have deserted it. “It is mostly the middle-class and wealthier citizens who have

turned their backs on Civic Platform, they believe the party no longer represents their interests,” he said.

“These voters are tired of all the regulations and bureaucratic obstacles hampering their everyday lives.

Civic Platform has so far done nothing to help them, the party needs to focus on legis-

lation that would help remove those barriers,” said Mr Czapiƒski.

Meanwhile, Sergiusz Trzeciak, a political consultant and lecturer at Collegium Civitas said the current unfavorable trend for PO will be “extremely difficult” to change. It is rather a matter of how much more support PO will lose, Mr

Trzeciak said, as people are “fed up with them and their PR tricks don’t make much of an impression anymore, they have lost credibility.”

“The only thing I can imagine reversing this trend is something unpredictable, some huge scandal in one of their rival parties,” he added.

Remi Adekoya

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NEWS

www.wbj.pl

SEPTEMBER 23-29, 2013

Labor

Defense

Unions boycott negotiation talks

Polish defense industry to face major consolidation

Poland’s major labor unions are refusing to take part in the Tripartite Commission sitting with the government and private employers’ representatives

SHUTTERSTOCK

After organizing a four-day protest in Warsaw in midSeptember, Poland’s biggest labor unions have rejected an invitation to talks with the government and private employers’ representatives to discuss their postulates. “We consider talks in the commission to be only a simulation of dialogue,” union leaders wrote in their statement.

The government had invited the union representatives to take part in the Tripartite Commission, an institution established to foster social dialogue between the government, labor unions and private employers’ representatives.

The union members had originally walked out of the Tripartite Commission discussions back in June complaining that the government was ignoring their postulates and only feigning real negotiations. They also insisted that

The government will create a new holding to strengthen the troubled sector

Union members protested for four days in Warsaw Prime Minister Donald Tusk fire Labor Minister W∏adys∏aw Kosiniak-Kamysz, a demand Mr Tusk has refused to comply with.

Union demands During the Warsaw protests, union activists had demanded more spending on education and higher minimum wages.

They also called for the government to stop firing teachers and closing schools, refrain from raising the retirement age and rescind its recently adopted labor code amendment which allows employers to calculate over-

time more flexibly. This last postulate has been particularly emphasized by the labor union leaders.

“I am appealing to the labor unions to take part in this debate. I am sure the employers’ representatives will also address these postulates,” Mr Kosiniak-Kamysz said after the Tripartite Commission meeting, which was attended by Deputy PM and Finance Minister Jacek Rostowski. The labor minister also added that the government would address the unions’ demands “in the nearRA est weeks.”

Poland will establish a single defense industry holding made up of some 50 companies, Prime Minister Donald Tusk announced at a press conference on the premises of arms producer Wojskowe Zak∏ady Mechaniczne (WZM) in Siemianowice Âlàskie last week.

Following an agreement reached by the defense and state treasury ministers, the new capital group will include Polish Defense Holding (PHO), a group of some 40 firms, steel mill Huta Stalowa Wola and 11 other weapons manufacturers. It remains unclear who will run the new holding.

“Establishing such a group should give a much needed boost to the Polish defense sector. It will create synergy arising from better coordination and specialization,” said PM Tusk, admitting that in the past Polish arms producers were often unwilling to cooperate with one another

which cost them many deals both in Poland and abroad.

It should also result in more orders for small and medium-sized companies within the group, he said.

hinted that it might be called “Rosomak,” after an eponymous armored vehicle produced in the Siemianiowice Âlàskie plant.

Better late then never Big bucks Defense Minister Tomasz Siemoniak stressed that the integration was also necessary, given the planned modernization of Poland’s defense industry which will include contracts worth some z∏.139 billion by 2022. Poland is one of very few EU countries looking to increase its defense spending in the coming years rather than curb it.

The defense ministry has clearly stated that the bulk of the contracts will go to Polish companies.

State Treasury Minister W∏odzimierz Karpiƒski announced that the total income of the companies forming the new holding is roughly z∏.6 billion and they employ over 13,000 people.

The consolidation process will be completed by June 2014. The name of the new entity is still a matter of debate, although Mr Tusk

There are opinions that the creation of the new holding will not bring the desired effects. “Further consolidation is a good idea, other countries have already done that, but it cost them billions of euros. I’m afraid that in Poland it will be just a cosmetic change that won’t bring any real results,” said Stanis∏aw G∏owacki, NSZZ Solidarity leader in the defense industry.

Other industry experts point out that such a consolidation is a good move though coming at least a year too late.

“The current situation in the sector forces Poland to make such a move. It is being dominated by national, or in some cases even international giants,” said S∏awomir Ku∏akowski, president of the Polish Chamber of National Defence Manufacturers.

Kamila Wajszczuk Jacek Ciesnowski

Media patronage

Netherlands-Polish Chamber of Commerce Rijsttafel ball

Board members Remco van der Kroft (left) and Pawe∏ Mlicki (right) of the NPCC hand over the check for z∏.32,000 to Natalia Marciniak, General Manager of the Foundation for Social Corporate Responsibility

On September 14, the NetherlandsPolish Chamber of Commerce (NPCC) held its annual Rijsttafel ball in Warsaw.

During the event, z∏.32,000 was raised for the Foundation for Corporate Social Responsibility, which provides aid for children from 10 schools in north-western Poland.

The funds raised will be spent on English classes for them.

The event was attended by 450 guests, including Dutch Ambas-

sador Paul Bekkers who launched the event, Jaap C. van Oost, founder and former chairman of the NPCC, Cristiano Pinzauti, vicechairman of the Italian Chamber of Commerce, and Mik Kuczkiewicz, vice-chairman of the Belgian Business Chamber. The event was hosted by TV presenter Monika Richardson.

At the Rijsttafel ball, guests could sample delicious food from Indonesia, a former Dutch colony,

as well as traditional Dutch pancakes – poffertjes. Entertainment was provided by a number of artists, including American soul singer Jimmy Wilson and a Polish rock band LemON. The Netherlands-Polish Chamber of Commerce celebrates its 15th anniversary this year. To mark the occasion, a special edition of the chambers’ bulletin was published and presented at the event. ●

COURTESY OF NETHERLANDS-POLISH CHAMBER OF COMMERCE

(L-R) Eric van Vliet, vice-chairman of the NPCC, Elro van den Burg, managing director of the NPCC, Geert Embrechts, chairman of the NPCC, Chloé Marchand, managing director at Air France KLM and Andrea Maske, winner of two Air France KLM flight tickets

(L-R) Peter Heere, board member of the NPCC, Geert Embrechts, Chairman of the NPCC and Dutch Ambassador to Poland Paul Bekkers

BUSINESS

SEPTEMBER 23-29, 2013

www.wbj.pl

5

Oil

Stock Exchange

Orlen to gain North American foothold

First Chinese company to be listed on WSE

CPURTESY OF PKN ORLEN

Orlen Upstream, a subsidiary of Poland’s largest oil company PKN Orlen, has agreed to acquire 100 percent of shares in Canadian sector company TriOil Resources. The deal is valued at z∏.735.7 million, including z∏.562.9 million in cash.

The takeover is expected to be completed in November this year.

“We plan to use TriOil as a stepping stone to expand into the North American market,” said PKN Orlen’s CFO S∏awomir J´drzejczyk at the press conference announcing the deal. He added that even though the company plans more acquisitions in the future it is unlikely that they will be carried out this year.

Thanks to the deal, PKN Orlen will became an oil producer, as TriOil has its own oil fields in the Canadian province of Alberta, with daily output of some 4,000 barrels of oil.

COURTESY OF PEIXIN INTERNATIONAL GROUP

If the deal goes through, Poland’s biggest refiner will become an oil producer as well

The company needs z∏.100 million to build an R&D center

The takeover should go through in mid-November “We will gain access to production fields and will diversify our asset portfolio geographically,” Orlen’s chief executive officer Jacek Krawiec said in a statement.

More importantly, however, the Polish oil giant will acquire Canadian know-how and technology. In 2010 TriOil, using horizontal drilling and new multi-stage fracturing technologies, gained access to new resources. “TriOil represents

not only attractive assets, but also a team of professionals with unique expertise, which will be essential to achieving synergies that will be a part of our current projects as well as helping in the search for further growth opportunities,” said Wies∏aw Prugar, Orlen Upstream’s CEO. In mid-November, TriOil’s shareholders will vote on whether to approve the deal.

Kamila Wajszczuk Jacek Ciesnowski

Machinery manufacturer Peixin plans to raise z∏.100 million in its IPO Chinese packaging machinery manufacturer Peixin has launched its IPO procedure on the Warsaw Stock Exchange.

The company hopes to raise up to z∏.100 million by issuing 4 million shares priced at z∏.25 each.

The new issue will make up 25 percent of the company’s stock after the IPO. Peixin plans to sell 20 percent of the offered shares to individual investors and 80 percent to institutional ones. Its WSE debut is sched-

uled for October 10.

“We’re looking for additional funds for the investments we are planning. Listing on Chinese stock exchanges is a lengthy process and stateowned companies have priority,” said Peixin president Qiulin Xie. “We’re not big enough to be traded in the USA or Germany, but we’re a perfect fit for the Warsaw Stock Exchange, which is a stable and growing bourse,” Mr Xie added, explaining why he decided to list his company on the WSE.

machines manufacturing hygiene products such as tissues and diapers, wants to build an R&D center, and expand its production lines. The firm estimates that such investment, valued at roughly z∏.100 million, will increase its production capacity by 75 percent.

The company sells its products in China and other Asian countries as well as Africa and South America.

In 2012, Peixin had a net profit of €46.5 million and in the first half of 2013 it posted a €27.4 million net profit.

Investment plans

Beata Socha Jacek Ciesnowski

The company, which produces

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BUSINESS

www.wbj.pl

Exports

SEPTEMBER 23-29, 2013

Manufacturing

Exports of goods from Poland amounted to €146.6 billion in 2012

SHUTTERSTOCK

The value of Polish exports accounted for 46.1 percent of gross domestic product in 2012, the Ministry of Economy said in a report. In 2011, exports amounted to 45.1 percent of the GDP, while in 2001

they amounted to only 27 percent.

Poland is slowly catching up with other export-oriented countries, like Germany, where in 2012 exports amounted to some 52 percent of GDP (a 2 percent increase compared to the previous year).

Still, other CEE countries remain much more export-

Poland’s exports continue to grow, and in 2012 amounted to 46.1 percent of the country’s GDP

driven than Poland. Czech exports value stood for 78 percent of its GDP last year.

In Hungary and Slovakia the share of exports in GDP was even higher and amounted to a staggering 93 and 89 percent respectively (data for 2011).

The ministry also said that in 2012 exports grew by 4.9 percent year-on-year, while imports increased by only 1 percent. This translated into a better trade balance. Food exports grew the most, by 17.5 percent, the report said.

According to NBP estimates, exports of goods from Poland amounted to €146.6 billion last year, which is an increase of 4.6 percent yearon-year. Imports fell by 1.1 percent to €151.9 billion in the same period. Poland’s foreign trade deficit was reduced by €5.3 billion in in 2012, to €10.6 billion, the ministry said. “It is worth observing that last year’s deficit was lower by over €15.6 billion (or about 60 percent) compared to that in 2008, when it was at a record-high level of €26.2 billion,” the report reads.

Kamila Wajszczuk

SHUTTERSTOCK

Report shows growing Poland leader in white role of Polish exports goods manufacturing

White goods production saw a double-digit increase in June and July

Since January Poland has produced 12 million household appliances In July Polish factories churned out 1.8 million large household appliances, which is 17 percent more than in the same month last year. July was the second month in a row in which white goods manufacturing saw a double-digit increase.

Since January, as many as 12 million appliances have rolled off Polish manufacturing plants, a 13 percent increase compared to the same period in 2012.

“The largest increase was observed in the number of refrigerators, built-in cookers

and washing machines. The first two segments saw a 30 percent growth,” Wojciech Konecki, head of sector association CECED told Dziennik Gazeta Prawna.

These figures show that Poland is becoming the leader in white goods manufacturing, even overtaking Italy, which until recently was no. 1 in the refrigerators segment, Mr Konecki added.

Samsung’s manufacturing plant in Wronki has already doubled its production capacity since 2012, which currently stands at 2 million refrigerators a year. Further expansion this year is expected to bring the figure to 2.5 million.

The growing demand from

Poland’s main export destinations is one of the main drivers of growth in the sector. Russia imported 14 percent more large household appliances from Poland in the first half of this year than in the corresponding period of 2012, according to data compiled by GFK, a market research firm. White goods exports to Ukraine increased by 19 percent while Germany imported 5 percent more Polish-made appliances in the first six months of 2013.

Domestic demand is also rising, albeit more slowly.

Poles purchased 2.2 million white goods in the first seven months, which is 1 percent more than in the same period Beata Socha last year.

‘Robin Hood tax’ to be revamped The government will make signifcant changes to the “solidarity tax” paid by wealthier local administration units in Poland. The tax is widely referred to as “Janosikowe,” roughly translated as “Robin Hood tax.” “The current system is outdated,” Prime Minister Donald Tusk said.

“I am convinced that in 2015 Janosikowe will cease to exist in its present form,” Mr Tusk said.

He added that proposed changes will be worked out by a team composed of Finance Minister Jacek Rostowski,

Administration and Digitization Minister Micha∏ Boni and Jacek Cichocki, head of the Chancellery of the Prime Minister.

The PM added that the ministers will look for solutions to financially support poorer units, while at the same time decreasing the burden imposed on some of the cities in Silesia, Warsaw, or the Mazowieckie voivodship, which pay the highest sums in the current system.

Local authorities have long complained that the tax, introduced in 2003, places too great a strain on the richest regions,

which have already been struggling amid the economic slowdown. For example, in the first half of 2013, Mazowieckie received z∏.200 million less from corporate income tax than in the corresponding period of 2012. The region’s government announced it will officially suspend payment of the tax on September 16.

In response, the Polish parliament decided that it will loan Mazowieckie the z∏.220 million it needs to pay the remaining tax, from the state budget.

KW

New TP CEO counts on market growth Poland’s telecommunications market has lost a lot in value over the past few years as a result of regulatory activity, Bruno Duthoit, the new chief executive of the country’s largest sector firm Telekomunikacja Polska (TP), told Rzeczpospolita in an interview. In his

opinion, the market should now start improving. “If Poland’s GDP continues to grow by 2-3 percent annually in the coming years, then – excluding the effects of regulatory activity – I would estimate the market’s potential for growth at half of that so 1.0-1.5 percent,” the

CEO said. Mr Duthoit was officially nominated to the post of CEO last Thursday. He replaced Maciej Witucki, who in turn became a member of the firm’s supervisory board.

In 2012, TP had a net profit of z∏.855 million, 55 percent KW less than in 2011.

FINANCE & ECONOMICS

SEPTEMBER 23-29, 2013

Fiscal Policy

Flat-tax to stimulate private pension savings By encouraging individuals to save more money, the government wants to raise extra cash to finance public debt

lower than in August 2012. That was still slightly better than market expectations, which saw a drop of 0.6 percent year-onyear. In month-on-month terms, employment inched up 0.1 percent, which is an increase for the fourth consecutive month. “[The] number of employed [people] increased in

The average salary in August rose by 2 percent compared to the same month last year and stood at z∏.3,760.45. Economists had expected salaries to increase by 2.9 percent. In July the pace of wage growth was higher and stood at 3.5 percent.

Employment stood at some 5,493,800 and was 0.5 percent

August by 4k as compared to July (we expected a drop by 2k),” analysts from Bank Zachodni WBK wrote in an emailed comment. “This was the biggest August increase since 2007, when [the] Polish economy was in the booming phase,” the economists wrote.

BKS

Employment (thousands), August 2011-August 2013 5,600 5,560 5,520 5,480

5,400

The government hopes that people will invest their money in IKZE accounts

Jul. '13

Aug. '13

Jun. '13

May '13

Apr. '13

Mar. '13

Jan. '13

Feb. '13

Dec. '12

Oct. '12

Nov. '12

Sep. '12

Jul. '12

Aug. '12

Jun. '12

May '12

Apr. '12

Mar. '12

Jan. '12

WE COMPOSE UNIQUE SOLUTIONS FOR CUSTOMIZED SITUATIONS

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We give you a combination of an adviser dedicated specifically to you and a variety of products including the expertise and experience of PKF experts in the area of:

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10 8

TRAININGS

6

CONSULTING TAX

industrial output will accelerate again in September,” they said, adding that the average y/y growth in Q3 may even be 5 percent, clearly higher that in H1 2013. Further improvement in the industrial sector will be driven by an economic rebound that is occurring in Poland’s main trading partners in the euro zone, the economists KW wrote.

ACCOUNTING AUDIT

percent y/y and fall by 3.7 percent m/m. Production in the construction sector fell by 11.1 percent y/y and by 0.8 percent m/m, GUS also said. In an emailed comment, BZ WBK economists wrote that the deceleration in industrial production growth was due to seasonal factors. “We expect that due to [a] positive working day effect, [the] pace of growth of

Feb. '12

Dec. '11

Oct. '11

Nov. '11

Source: Central Statistical Office

Average salary growth (%, y/y), August 2011-August 2013 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0

Sep. '11

force in March 2014. The draft legislation will be prepared by the end of September, the government said after its Tuesday sitting.

According to the reform, private pension funds (OFEs), which are a mandatory part of Poland’s pension system, will transfer all of the treasury bonds in their possession to the state-run social security system. They will also no longer be allowed to invest in state debentures, which will significantly curb the market for T-bonds.

Aug. '11

into some z∏.1,800 for a person with an average salary.

The change is thus aimed at encouraging people with lower and middle incomes to save in the private pension system.

At the end of 2012, financial institutions maintained 496,821 IKZE accounts, which were valued at z∏.52.8 million.

The tax incentives will be a part of a large pension system reform the details of which the government announced in early September. The changes are set to come into

Aug. '11 Sep. '11 Oct. '11 Nov. '11 Dec. '11 Jan. '12 Feb. '12 Mar. '12 Apr. '12 May '12 Jun. '12 Jul. '12 Aug. '12 Sep. '12 Oct. '12 Nov. '12 Dec. '12 Jan. '13 Feb. '13 Mar. '13 Apr. '13 May '13 Jun. '13 Jul. '13 Aug. '13

5,440

Industrial output grows slower than expected Poland’s industrial output grew by 2.2 percent year-on-year and declined by 4.5 percent monthon-month in August, the country’s statistics office GUS announced. Seasonally adjusted industrial production increased by 2.6 percent y/y and fell by 0.9 percent m/m. Analysts surveyed by the Polish Press Agency had expected industrial output to grow by 2.6

7

Mixed signals from labor market

SHUTTERSTOCK

The government has decided to increase tax incentives for private pension savings, which until now have been a marginalized part of the country’s pension system. It will introduce a single flatrate tax on the money paid out of the individual voluntary pension accounts (IKZE) in place of the standard progressive rates (currently 18 and 32 percent).

The government hopes the tax reduction will bring more money into IKZE accounts, which could then be invested in government bonds.“The range of financial products offered by brokerage houses will be expanded to allow IKZE assets to be invested in State Treasury bonds,” the Council of Ministers wrote in a statement. According to the same statement, the limit for individual IKZE savings, which is a tax-deductible amount, has been set at some z∏.4,000 a year. Currently the limit is set at 4 percent of the annual income, which translates

www.wbj.pl

4 2 0 -2

accounting books management reporting payroll and human resources corporate secretarial services compliance services

valuation EU grants IPO/NewConnect privatization handling credit ratings

capital market corporate governance drafting prospectuses reporting according to International Financial Reporting Standards

-4 -6

Warszawa

Katowice e

Gdańsk

Opole

Wrocław

Poznań

Łódź

Au

g. ’1 Se 1 p. ’11 Oc t. ’ 1 No 1 v. ’ 11 De c. ’1 Jan 1 . ’1 Feb 2 . ’1 Ma 2 r. ’ 12 Ap r. ’ 1 Ma 2 y ’1 2 Jun . ’1 2 Jul . ’1 Au 2 g. ’1 Se 2 p. ’12 Oc t. ’ 1 No 2 v. ’ 1 De 2 c. ’12 Jan . ’1 Feb 3 . ’1 Ma 3 r. ’ 13 Ap r. ’ 1 Ma 3 y ’1 3 Jun . ’1 3 Jul . ’1 Au 3 g. ’13

-8 -10

Source: Central Statistical Office

tel. 22 560 76 50

www.pkfpolska.pl

8

INTERVIEW

www.wbj.pl

SEPTEMBER 23-29, 2013

Film

Understanding Poland’s film-making business WBJ sat down with Patryk Vega, one of the most successful young Polish film-makers to discuss what kind of movies make money in Poland, the reasons for subsidizing European movies and corruption in the film industry Remi Adekoya: You signed a letter of protest this summer, together with nearly 200 other Polish film-makers, which aims to protect Poland’s heavily subsidized film industry during the ongoing EU-US free-trade agreement negotiations. I even heard a Polish film-maker say that without subsidies the Polish movie industry would simply disappear. What do you think about that?

Patryk Vega: In France movies are treated as part of the national heritage and all kinds of movies are subsidized: niche artistic films, commercial comedies, horrors and thrillers. But when I pitched a movie idea to the Polish Film Institute (PISF), they told me “we will not give you money because your film has the potential to be a box-office success.”

I asked why they didn’t want to invest in a film that could make money and enable them to recover the subsidy they gave me from my profits.

They replied that they prefer subsidizing films which have no other means of raising necessary funds.

That was their official position. However, the same institute had subsidized commercial productions before. Let us remember that the members of the commission who decide which films get subsidies are film-makers themselves. So the rule is “give me money for my movie or I won’t give you money for your movie when its your turn.”

I think that both ambitious and commercial movies should be subsidized as long as they can make money for the institute. I also think there

should be more supervision of production budgets.

Are the current measures insufficient?

The film-making industry is full of pathologies, which have continued since the days of communism. One of the biggest problems of the Polish film industry is the fact that a film producer makes the bulk of his pay from a movie’s budget and not based on the film’s commercial performance. Because of this, movie budgets are artificially inflated and the producer is not motivated to make the film successful. He has already made his money just by making the movie.

So a Polish producer receives his salary upfront before the movie is even screened?

Yes, plus he is usually entitled to 5-10 percent of the profit the movie makes. But he can embezzle more money by inflating the costs. If, for example, a producer knows he

needs z∏.4 million to make a movie, he writes up a budget for z∏.8 million and then asks for a subsidy.

If PISF agrees to subsidize 50 percent of his costs, then he basically has the means to finance the entire production.

He gets his buddies to write up letters of intent to account for the fictitious remaining z∏.4 million. He further reduces his costs through barter transactions and the rest goes straight to his pocket.

The Polish movie industry is ruled by mechanisms closer to the kind of jungle law we find in Ukraine or Russia than to the practices observed in the European Union. The position of the distributor is also key in Poland. He is the first one to recover his investment outlays while at the same time making 20 percent of every z∏.1 of profit the movie makes.

How exactly does that work?

Distributors introduce a movie to the cinemas. They pay for

making copies of the movie and for advertising and promotion. When a customer comes to the cinema and buys the first ticket, the producer gets nothing, because the distributor takes all the ticket returns until he has recovered his costs. After that he receives 20 percent on every extra z∏.1 the movie makes.

This model is nonsensical in my opinion. Distributors also inflate the costs they incurred in promoting a movie. Together with the inflated production cost, even if a movie has a million viewers it still won’t make a profit. The pathology here is the fact that even when a movie is a success, the producer will still want to show he made a loss so he does not have to return the subsidies he received.

So the deal with PISF is that if the movie doesn’t make money, you don’t have to return the subsidy but if it does, you do?

Exactly, so it is in the best

interest of the producer to show that his film lost money.

It’s difficult to believe such mechanisms are still in place...

If you want to know how many films are made like this, its enough to watch some movies and judge if their budgets correspond to what you see on screen. Everybody heard of the unexplained fire which incinerated the production set and stage designs of one of the biggest Polish productions, [the “Quo Vadis” movie filmed in 2001], making it impossible to assess the real costs of making that movie. Of course nobody ever proved the fire was set on purpose.

Let’s imagine I was a young and talented film-maker with a brilliant screenplay in my hands. What should be my next step?

When I was at the beginning of my career, I believed that if you have a brilliant screenplay, you have a chance to make a

INTERVIEW

COURTESY OF KLOSS.PL

SEPTEMBER 23-29, 2013

In 2012, Patryk Vega made a movie based on one of the most famous characters in Polish cinematic industry: Hans Kloss, a Polish agent during WW II movie. That is not true. Talent is not enough. In Poland whether you make a movie or not depends mainly on the kind of connections you have.

What kind of movies can make money in Poland?

There are three genres which are likely to make money in Poland. Firstly, you have movies based on books read in schools, commercial chick flicks and family movies – people don’t skimp on their children.

Why don’t Poles like ambitious cinema?

Poles are the most overworked nation in Europe, according to surveys. After a week of hard work, they are so tired that all they want to do is unwind.

They want to watch movies that help them escape their everyday problems.

Unlike comedies, which are losing viewership, chick flicks are still selling well. These movies are addressed to those who dream that one day their lives will be better, just like the movie characters they see.

TVN [a private Polish TV station] is built on this mechanism. In the TV series it produces, the world is always a little better than what we see in reality.

But even they are evolving.

In older productions characters used to have luxurious apartments and expensive cars.

They would spend their entire day on romance with no signs of them actually doing any

“It is in the best interest of the producer to show that his film lost money.” work. Right now, the world is moving towards more realism.

We can see that in the new US productions, like Batman and Superman. So even Polish movies have become a bit more realistic in recent years.

Why are so few Polish movies distributed outside the country?

Poles have a huge inferiority complex in relation to the rest of the world. I have always been put off by Poles’ provincial habit of describing an actor as “the Polish Brad Pitt” or a female singer as “the Polish Madonna.”

Such comparisons immediately place us at a disadvantage. We are unable to compete with Americans when it

Patryk Vega Patryk Vega was born in 1977 in Warsaw, Poland, where he studied sociology. He wrote his first screenplay at the age of 22 and at 28 he directed his first series “Pitbull,” which was a huge success. Since then he has written and directed several movies as well as TV series, most of which have been commercial hits. ●

comes to special effects for example. But by creating stories close to our lives, we can make good movies.

Latin American hits like “Amorres Perros” or “City of God” were global blockbusters because they told universal stories which took place in the exotic surroundings of favelas and inaccessible ghettos.

Unfortunately, Poland is not a fascinating country to the rest of the world. Some parts of Eastern Europe, Russia in particular, are interesting to people, though.

I think the reality of Eastern Europe can be attractive through its wildness. But to get international distribution, your film needs to be made in English. If anybody thinks a Polishlanguage movie stands a chance of being distributed in the US, then that person is not living in the real world.

What about the soon-to-bereleased film directed by Oscar-winner Andrzej Wajda on the legendary Solidarity leader and former Polish president Lech Wa∏´sa?

Maybe it will be shown in some festivals but in my opinion, Wa∏´sa is not a fascinating figure to the world. Of course, some Americans know who he is but a biographical film on Mr Wa∏´sa is not likely to become a commercial hit. I don’t believe the American public would go to the cinema to see a movie on Wa∏´sa.

Firstly, because of the language barrier. Secondly, because Polish productions are not treated seriously in the US. If people see “Made in Poland” on a brochure, they won’t go to see the film irrespective of what it is about. ●

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9

OPINION & ANALYSIS

SEPTEMBER 23-29, 2013

www.wbj.pl

11

Russia’s Response to the EU’s Eastern Partnership Efforts Stratfor

A

fter Armenia’s decision on September 3 to join the Customs Union, a Russian-led trade bloc, a number of European politicians said Armenia will not be able to have a free trade agreement with the European Union because the two blocs are incompatible. Lithuania, which currently holds the EU presidency, is leading efforts to bring six former Soviet states -- Moldova, Georgia, Armenia, Ukraine, Belarus and Azerbaijan -- closer to the European Union through political and trade agreements under the EU’s Eastern Partnership program, initiated by Poland and Sweden in 2008.

Russia has been using its strong economic and energy ties to these countries to block Brussels’ efforts, with varying degrees of success.

Moscow will likely intensify pressure leading up to the Eastern Partnership summit in Vilnius in November, during which numerous Eastern Partnership countries are expected to decide whether to deepen political and trade ties with the European Union through new agreements. Considering the economic weakness of the European Union and its focus on resolving internal structural problems, Russia -despite internal challenges of its own - can expect some success in influencing peripheral states.

BELARUS

UKRAINE

RUSSIA

ARMENIA KAZAKHSTAN

KYRGYZSTAN

Members Provisional plans to join

TAJIKISTAN

Observer status Interested in joining

The November 28-29 Eastern Partnership summit is one of the main events during Lithuania’s six-month EU presidency. The European Union’s aim is to initial association agreements with Armenia, Moldova and Georgia, sign such an agreement with Ukraine during this summit and deepen free trade negotiations.

However, as Armenia’s decision to join the Customs Union shows, Russia is likely to thwart some of the European Union’s plans. Moscow has recently stepped up its efforts to discourage Eastern Partnership countries from aligning more closely with the West, promising greater economic cooperation and investment and threatening to destabilize economies by blocking trade.

As Armenia’s largest trade partner and foreign investor and as owner of many of the country’s strategic assets, Russia is crucial to Armenia’s stability.

Russian President Vladimir Putin recently indicated that Russian Rail-

SHUTTERSTOCK

VIETNAM Stirrings things up

ways would invest heavily in Armenia’s railway system, and further investment is likely by Rosneft and Rosatom to upgrade Armenian chemical plants and the nuclear sector. Because of the distance separating them and its deep political and economic crisis, the European Union does not have the same opportunities as Russia to become a sustainable economic and investment partner for Armenia and other countries in the region.

Stay away from Brussels In the case of Moldova and Ukraine, Russian officials have warned the countries about the consequences if they sign the agreements with the European Union. Russian Deputy Prime Minister Dmitri Rogozin in an interview warned Moldovans that they could face trouble working in

Russia if the agreement is signed.

Moscow also hinted that it would withhold natural gas exports to Moldova, and the Russian sanitary authority reportedly warned that it might ban the import of alcoholic beverages from Moldova due to health and safety concerns -- a damaging prospect for Moldova given the importance of the wine industry for its economy. Wine exports account for about 10 percent of Moldova’s exports, and the industry makes up about 2.3 percent of Moldova’s gross domestic product, according to a 2010 U.S. Agency for International Development report.

For Ukraine, Moscow is offering lower natural gas prices and to abolish tariffs on oil and natural gas as incentives to join the Customs Union.

But Russia has also implemented

measures to remind Ukraine of its economic dependence on Russia. For example, in August Russia banned imports of Ukrainian chocolate and extra customs controls were temporarily placed on a number of Ukrainian exports to Russia recently, likely to hurt Ukraine’s ties with the European Union.

Kiev has already initialed the association agreement with Brussels. However, Ukraine has so far not signed the agreement because of tensions between the EU and Ukrainian leadership over the jailing of Ukrainian opposition leader Yulia Timoshenko and out of fear of an economic crisis with Moscow. Russia has long tried to gain additional influence in Ukraine, particularly over its natural gas network, which is vital to Russia’s natural gas exports to Europe. Over the com-

ing months Kiev will try to strike the difficult balance of borderland countries, not aligning fully with either Russia or the European Union.

If any Eastern Partnership countries choose to sign agreements with the European Union, it would be important because it would signify the strategic choice to align politically and economically with the West.

However, Moscow will continue to try to use economic ties to its advantage while simultaneously using pressure to dissuade these countries from further integration with the European Union. ● This edited version of “Russia’s Response to the EU’s Eastern Partnership Efforts” is reprinted with permission of Stratfor For more analysis, visit STRATFOR.com

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.

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COVER STORY

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SEPTEMBER 23-29, 2013

Energy

Coal is still king Jacek Ciesnowski

“Poland is going back to coal as an energy source,” said Polish Prime Minister Donald Tusk when commenting on the expansion of the Opole power plant in July of 2013. Taken at face value, the statement seems shocking.

After all, the European Union is trying to curb carbon emissions and has set a target of cutting them from 1990 levels by 20 percent by 2020. But after a closer look at Poland’s energy mix, it shouldn’t surprise anyone that Poland is looking to coal to meet its energy needs.

Until recently Poland had hoped that shale gas would be a relatively clean and cheap energy source the country could turn to. However, exploration for shale gas has faced a number of challenges, from the lack of a legal framework to hugely varied estimates of how much shale gas actually lies beneath Poland’s surface. For these and other reasons, not a single company has yet begun extracting shale gas commercially and a few (Exxon Mobil, Marathon Oil and Talisman Energy) have quit Poland altogether.

There has been a notable lack of progress when it comes to nuclear energy in Poland as well. The planned date for the first of two Polish nuclear power plants to become operational has been set for 2024, but neither the location nor the partner responsible for supplying technology for the plant and constructing the facility has been chosen.

And renewables? In 2012 only 4,400 MW of energy came from renewable energy sources such as wind and solar power – 10.55 percent of Poland’s total energy use.

AVAILABLE

NOW!

Cheap and plentiful No wonder then that in order to meet its growing energy needs, Poland is turning to much-cheaper coal and especially its cheapest form, lignite. With Poland boasting lignite deposits estimated at 13 billion metric tons, only 14 percent of which are being mined, and some 90 percent of Polish energy derived from coal, it’s a match made in heaven.

According to Central Statistics Office data, in 2011 80 percent of Poland’s energy came form coal (hard coal – 62 percent, lignite – 18 percent). Energy derived from gas amounted to 6 percent of the country’s energy mix, while oil was used to produce 1 percent. The remaining 13 percent came from other (mostly renewable) energy sources.

According to the Statistical Review of World Energy 2012, published by British Petroleum, Poland produces nearly 140 million metric tons of coal (including both lignite and hard coal) a year, making it the second-biggest producer in the EU, behind Germany (188.6 million tons).

Not enough?

With all those factors in place – cheap, easily accessible deposits and already-established power facilities, the demand for coal is expected to rise in Poland, with many power plants currently being

SHUTTERSTOCK

Despite pressure from the EU to limit its carbon emissions, Poland is “going back” to cheap, polluting coal as its main source of energy

In 2012 Poland produced 140 million tons of coal means that in real terms the capacity is falling. The ministry also points out that 4.4 GW of existing capacity will have to be shut down by the end of 2017.

State power grid operator PSE plans to use measures such as raising the amount of available reserve capacity,

“The demand for coal is expected to rise in Poland” expanded or built from scratch. This trend is expected to continue, especially after a recent report from the Economy Ministry stating that Poland faces a risk of power shortages in 20162017. The ministry said that Poland’s power capacity deficit in peak periods could amount to as much as 1,100 MW in the winter of 2017.

According to the report, the lack of significant growth in power generation capacity in Poland, combined with increasing demand for power

speeding up unit maintenance and boosting imports to raise the power available in the transmission system by 1,500 MW. Despite that, the risk of shortages is still realistic, the ministry said.

To prevent those scenarios from becoming reality, there are several investments being carried out in Poland. The Opole power plant expansion mentioned above will see two new coal-fired power generation units installed, each with the capacity of 900 MW. Two new steam-gas powered

blocks are being built in Stalowa Wola (450 MW) and W∏oc∏awek (460 MW). Enea is developing a coal-fired block in Kozienice, which will have a capacity of 1,075 MW. There are also power plants either already being constructed or in the development phase in Pu∏awy (steam-gas, 840 MW) and Jaworzno (coal-fired, 910 MW).

Whether these investments will be enough to solve the future power shortage issue is a different matter.

Still, experts say, Poland will need more power to quench its increasing thirst for energy. Estimates have found that when a country’s GDP grows by 1 percent, the demand for electricity rises by 0.7 percent.

With the Polish economy slowing down in recent years, the need for cheap energy is on the rise. One gigajoule (GJ) of lignite costs some z∏.6.50, while the same amount of hard-coal energy can amount to z∏.10-11.

New planned and ongoing investments for 2011-2025 Fuel Source

Planned output in MW

Biogas

18.5

Biomass

470.2

Natural gas

8,222.4

Nuclear

4,600

Lignite

1,318

Hard Coal

10,601.4

Wind

4,217.15

Water

75.1

Biomass and hard-coal hybrids

1,318

Others

1,158.5 Source: Energy Regulatory Office (URE)

Poland’s energy production by source (% of total produced) Source

2010

2011

Hard coal

55.8%

53.4%

Lignite

30.9%

32.1%

Natural gas

3.0%

3.6%

Biomass and biogas

4.0%

4.6%

Others (oils, liquid gas)

3.0%

2.9%

Water

2.2%

1.4%

Wind

1.1%

2.0% Source: The Energy Market Agency ARE SA

Find this content and more in Investing in Poland 2014. Information and key data about all of Poland’s voivodships can be found inside. Also, find analyses of major trends moving Poland’s economy. Want more?

Pick up the publication or visit WBJ.pl for more information.

COVER STORY

Therefore, according to data collected by PSE, power production in lignite plants rose by 3.7 percent in 2012 over the previous year, while hard coalfired plants lowered their output by nearly 7 percent.

Dirty, but cheap All this sounds logical: Poland has resources and facilities for coal-powered energy. And since coal is cheap, it can be produced in larger quantities. Everyone is happy – everyone, that is, except those concerned about the environment.

Coal-based energy (especially that derived from lignite) is the dirtiest kind. The huge Be∏chatów lignite power plant in central Poland was named the biggest carbon polluter in the European Union by the Sandbag Climate Campaign in 2009.

And though the European Union has tried to force members to curb carbon emissions, it has not been particularly successful. EU carbon permits have lost over half their value during the past year and have fallen below €3 per ton.

Under current EU regulations, energy producers have to buy a permit for each ton of carbon dioxide they emit.

But these permits would have to cost around €45 to make burning natural gas more profitable for them than hard

coal. Lignite coal sourced domestically would require an even higher carbon price.

The EU has tried to force through the so-called “backloading” scheme, which would delay the auction of 900 million emissions permits and as a result raise their price. After huge amount of lobbying by the EU’s biggest polluters, including Poland, the first attempt to pass the regulations failed in the European Parliament. However, a second attempt was successful. Still, the measure lacks sufficient support to become law, since it has to be accepted by the governments of all EU states, a highly unlikely scenario given the current political and economic situation, especially in Poland.

Still, moves have been made to at least curb Poland’s “dirty” energy production.

According to Eurostat, Poland reduced its CO2 emissions by 5 percent last year. In February, PGE and Energa purchased wind farms operations in Poland from Spain’s Iberdrola and Denmark’s Dong Energy for nearly z∏.2 billion combined.

Renewable energy firm Polish Energy Partners has a portfolio of wind farm projects and wind farms under construction with a total capacity of 1,000 MW. They are scheduled to be complet-

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13

SHUTTERSTOCK

SEPTEMBER 23-29, 2013

More coal-fired power units will soon be built in Poland ed in 2013-2016.

Also, Poland’s energy policy is currently being adjusted by the government. The new policy will extend to 2050 and is currently being re-developed. It is expected to be published at the end of 2013.

But the process of expanding the role of clean energy in the country’s energy mix is still a long and rocky road. And for the foreseeable future, coal will remain king in Poland’s energy mix. ●

Coal – a lifeline for state-owned firms There is another key reason why Poland’s government wants to continue its involvement with coal. Most state-owned mining companies, such as Kompania W´glowa (KW), are facing tough times. Even though coal is used in the majority of Poland’s power plants, demand for it has been declining. As a result, prices have fallen (by over 10 percent in H1 of 2013) and the unsold coal has begun piling up. After the first five months of 2013, KW had 6 million metric tons of unsold coal and was forced to export it at

low prices. During the period the company recorded a loss of about z∏.130 million.

The power plant extension projects are therefore a lifeline for Kompania W´glowa and other miners. KW has recently signed a letter of intent with PGE to help expand the power plant in Opole and plans to build its own coalbased energy plant in Silesia. These three investments would guarantee the company a market for some 7.5-10.5 million tons of coal a year – and would easily keep it profitable. ●

14

INVESTING IN POLAND

www.wbj.pl

SEPTEMBER 23-29, 2013

Investing in Poland

What makes a good investment destination?

Top experts discussed Poland’s investment landscape and current trends at the Investing in Poland 2014 conference Nearly 200 top executives and representatives from the Polish Information and Foreign Investment Agency (PAIiIZ) participated in two discussion panels and a case study at the Investing in Poland 2014 conference held in Villa Foksal in Warsaw on September 17. The event marked the launch of the fifth issue of the annual Investing in Poland publication.

The first panel focused on the current investment landscape in Poland and what the country can do to keep being attractive to foreign companies. The second panel was on the BPO sector, its future, current trends and major obstacles.

Economic zones – the last lifeline With public aid for investors slowly waning, Poland’s attractiveness relies more than ever on the incentives that the country’s 14 special economic zones have to offer.

The recent government decision to extend SEZs’ lifespan until 2026 has generated a lot of interest from investors looking to set up shop in special economic zones, Tomasz Sadzyƒski, president of the Lodz Special Economic Zone said.

However, their temporary character and changing regulations are some of the major drawbacks which result in companies leaving the zones,

said former Treasury Minister and current partner at PwC, Jacek Socha. “Their lifespan should be unlimited and changes should be introduced by the government five to seven years before any deadlines,” Mr Socha said.

Regardless of the scope and lifespan of the zones, they seem to be one of very few tools Poland has left to attract FDI, with EU aid curbed in the 2014-2020 financial perspective. S∏awomir Majman, the head of PAIiIZ, called Finance Minister Jacek Rostowski’s recent proposal to close special economic zones “somewhat eccentric to say the least.”

“It’s like fighting in a ring with your left hand tied behind your back,” Mr Majman said.

Local initiative Micha∏ Bernat, senior associate at Dentons, said local governments’ role in attracting investors is increasingly important. “In one city, local authorities agreed to change the public transport routes to provide easy access to a new investor’s plant,” Mr Bernat said.

The only region in Poland which will continue to receive EU funds comparable to those in the previous 20072013 budget is Eastern Poland. Still, due to insufficient infrastructure the region is still developing at a slower pace than western voivodships. “There isn’t a single decent golf course in eastern Poland.

Meanwhile in Kobierzyce, Lower Silesia, every Korean manager plays golf. It is not only a place where you relax but also where you do business,” Mr Socha said.

Less money, more jobs Panelists agreed that large investors, particularly in the production sector, are a thing of the past and that Poland is now increasingly attractive to smaller firms, mainly in the services sector, which account for some 75 percent of all permits granted by the Lodz Special Economic Zone.

“In the entire 2012 we issued some 16 permits for companies which declared they would create 800 new jobs and invest z∏.700 million.

This year, we have already reached the same number of jobs declared by new investors but at investment outlays lower by one-third,” Mr Sadzynski said and explained that the majority of firms currently coming to Poland are companies from the business process outsourcing sector, which do not need to invest millions in building large production plants.

Innovative sector The BPO sector, which was discussed during the second panel, has indeed been developing very rapidly in recent years. The number of jobs in the BPO/SSC sector has reached some 110,000 in Poland, with the biggest increase in the first eight months of this year recorded in Wroc∏aw (46 percent), Warsaw (33 percent) and Kraków (31 percent).

Poland was never the destination for very simple business processes. “We started off with F&A, order management and HR. Then we began receiving further BPO components, such as IT and R&D. Outsourcing centers are now beginning to specialize also in

KPO – Knowledge Process Outsourcing,” Iwona Chojnowska-Haponik, director at PAIiIZ, said.

Poland has also recently become the destination for highly-specialized financial services, provided by companies such as Goldman Sachs, which opened its Warsaw office in 2011 or Brown Brothers Harriman, which launched its operations in Kraków last year.

However, the panelists agreed that new companies relocating their centers to Poland are responsible only for a small part of the growth observed in the BPO sector.

“The actual growth comes

from the centers that are already in Poland. As much as 80 percent comes from reinvestments,” Paul Jasniach, director at PwC, said.

Stability and productivity According to the experts, Poland is chosen by western investors not merely because of its labor-cost attractiveness.

It is the country’s stability and productivity that brings foreign companies here, panelists stated.

“Ukraine is much cheaper than Poland and labor is much cheaper there. … [But] foreign companies come to Poland because we are stable,” Mieczys∏aw Budzik,

Warsaw Business Journal would like to thank our project partners: Strategic Partners:

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managing director at Impel said. Leszek Kurycyn, operations director at Randstad Professionals, stated that Poles are considered some of the best BPO employees in the world because they “assimilate processes transferred to Poland very well, they understand them and they can execute them more efficiently than in Western countries.”

Small fish in a big pond The majority of new companies relocating to Poland these days are small ones, which is an opportunity for regional cities.

“Clients these days are small firms. If they were big, they would have looked at SSC eight years ago. Small companies are afraid they will get lost in big cities. No one knows who they are,” Mr Jasniach explained.

“A study by Everest Group shows that 40 percent of SSCs move to tier 2 and tier 3 cities.

Smaller cities attract investors who don’t want to be a small fish in a big pond,” Ms Chojnowska-Haponik said.

Poland offers a number of locations attractive to investors, which sets it apart from its neighbors, such as Slovakia or the Czech Republic, where “apart from two or three locations, there are hardly any places meeting the

INVESTING IN POLAND

criteria for a BPO destination.

In Poland choices are limitless,” Ms ChojnowskaHaponik added.

www.wbj.pl

15

ROXANA DAWID/WBJ (8)

SEPTEMBER 23-29, 2013

WBJ Editor-in-Chief Andrew Kureth greets participants

Many top executives and experts attended the conference

(L-R) S∏awomir Majman (PAIiIZ), Jacek Socha (PwC), Micha∏ Bernat (Dentons)

Dariusz Lesicki, deputy mayor of Zielona Góra

(L-R) Jacek Ciesnowski (WBJ), Jacek Socha (PwC), Tomasz Sadzyƒski (Lodz SEZ), S∏awomir Majman (PAIiIZ), Micha∏ Bernat (Dentons)

Iwona Chojnowska-Haponik (PAIiIZ) and Paul Jasniach (PwC)

Egg or chicken The biggest obstacle investors face when deciding to move to a regional city, such as Lublin, Bia∏ystok or Radom, is insufficient office space. “There is one million sqm of office space currently under construction in Poland, however half of it is located in Warsaw,” Ms Joanna Mroczek from CBRE said.

Regional cities often cannot offer any leasable office space or they can’t meet the investor’s quality requirements. Companies can’t move in, because there is nowhere to move in to, and developers aren’t willing to launch new projects, because there isn’t enough demand.

So what can regional cities do when an investor is considering relocating there but cannot find space meeting his requirements? “This is where city authorities can play a key role. Either by providing temporary space for investors or by making sure the zoning plan attracts real estate developers who can construct office projects of sufficient quality,” Ms Mroczek added.

Lublin case study One example of a city with a pro-active approach to attracting investors is the eastern city of Lublin, which was showcased by Mariusz Sagan, a director at the city’s strategy and investor assistance department. Not only did Lublin invest in an international airport and an expressway bypass, it also has 33,000 sqm of office space currently under construction, as well as five shopping malls and two hospitals.

Lublin has already become a popular destination for IT firms, BPO/SSC centers, biotech and pharmacy companies and car and machinery manufacturers. Sollers Consulting, Transition Technologies and Sii are only some of the companies which have opened their offices in the city this year.

The Investing in Poland Project is organized by Warsaw Business Journal Group in cooperation with PAIiIZ, PwC, Bank Pekao, CBRE, Dentons and Randstad.

Beata Socha

(L-R) Beata Socha (WBJ), Iwona Chojnowska-Haponik (PAIiIZ), Paul Jasniach (PwC), Leszek Kurycyn (Randstad), Joanna Mroczek (CBRE), Mieczys∏aw Budzik (Impel)

Mariusz Sagan from the Lublin City Hall presents Lublin’s investment strategy

16

INVESTING IN POLAND

www.wbj.pl

SEPTEMBER 23-29, 2013

Lubelskie Key facts Voivode: Jolanta Szo∏no-Koguc Marshall: Krzysztof Hetman Area: 25,122 sq km Population (Dec. 2012): 2,165,651 Working-age population (Dec. 2012): 1,364,563 Unemployment rate (June 2013): 13.8% Average monthly wage (June 2013): z∏.3,200.77 GDP (2010): z∏.54.04 bln, up 5.7% y/y (3.8% of national GDP) Natural resources: coal, glass sand, limestone, marlstone, mineral waters, shale gas, siliceous earth Number of students of higher education: 90,140 Number of institutions of higher education: 18 Major universities: College of Enterprise and Administration, John Paul II Catholic University in Lublin, Maria CurieSk∏odowska University in Lublin, Lublin University of Technology, Medical University of Lublin, University of Life Sciences in Lublin Major airport: Lublin Airport (in Âwidnik) Special Economic Zones: EURO-PARK MIELEC Special Economic Zone: 194 ha (91 ha available)

Starachowice Special Economic Zone: 99 ha (82 ha available) Tarnobrzeg Special Economic Zone EURO-PARK WIS¸OSAN: 102.79 ha (89.76 ha available)

Estimated investment

Janów Podlaski Terespol Biała Podlaska Stoczek Łukowski

production and processing of healthy, certified organic foods. Cultivation of plants for biomass as a renewable energy source is also becoming increasingly popular.

Apart from food processing and production, mining, car manufacturing, engineering, construction and aircraft production are some of the industries the region’s economy relies on.

The region features, among other things, substantial human resources – with around 57 percent of its population under the age of 35, most well-educated, as the voivodship is one of the biggest academic centers in the country – every fourth resident is a student. Numerous state research institutes and research and development centers operate within the

Łomazy

Kodeń

Wisznice

Różanka Korolówka Włodawa Dubeczno

Wola Uhruska

Sawin

Rejowiec Fabryczny

Dorohusk-Osada

Chełm

Rejowiec

Dubienka

Siennica Nadolna

Nieledew Hrubieszów Zamość

Werbkowice

Szczebrzeszyn

Biłgoraj

Zwierzyniec Krasnobród

Łukowa Tarnogród

Tyszowce

Dołhobyczów

Żniatyn Tomaszów Lubelski Przewodów

Aleksandrów

Chochołów

Bełżec Lubycza Królewska

Voivodship budget 2012:

2013 (projected):

Revenues: z∏.777 mln Expenditures: z∏.841 mln Deficit: z∏.64 mln

Revenues: z∏.1.413 bln Expenditures: z∏.1.769 bln Deficit: z∏.356 mln

Key contacts

universities or are associated with them. The region aspires to become one of the most advanced R&D hubs in Poland.

With eyes set on future investors, the Lubelskie voivodship provides a range of initiatives for future investors, such as property tax exemp-

tions, thanks to the local subzone of the EURO-PARK MIELEC special economic zone. In order to fight unemployment, which exceeds 13 percent for the entire voivodship, authorities are focusing their efforts on attracting and supporting investors who can create jobs.●

Major city

Lublin The historic city of Lublin is the cultural and economic heart of the Lubelskie voivodship. It is the biggest city and the biggest academic center in Eastern Poland.

What sets Lublin apart is its strategic location near the large neighboring markets of Ukraine and Belarus. Another major asset of the city is the high number of graduates each year, which exceeds 20,000. These advantages, further strengthened by continued improvement in the quality of its infrastructure, make Lublin an attractive mid-size city in the CEE region.

The recently adopted Lublin Development Strategy for 20132020 emphasizes the role of modern business services (BPO/SSC), IT and food processing in the economic growth of the city. Other sectors with a strong presence in the city include automotive and machinery manufacturing, biotechnology and logistics. Many of their representatives operate within the Lublin subzone of the EURO-PARK MIELEC special economic zone.

Międzyrzec Podlaski

Investment outlays (in 2011): z∏.10.33 bln Radzyń (private sector: z∏.5.17 bln; public sector: z∏.5.16 bln) Podlaski Wohyń Of which: Ryki Industry: z∏.3.05 bln Kock Parczew Of which: manufacturing: z∏.1.43 bln Dęblin Construction: z∏.279 mln Lubartów Puławy Real estate activities: z∏.1.54 bln Trade and repair of motor vehicles: z∏.701 mln Kazimierz Dolny Łęczna Transportation and storage: z∏.2.1 bln Lublin Karczmiska Pierwsze Number of new partnerships and companies registered Poniatowa Świdnik Bełżyce (2012): 1,077, up 19.5% y/y Opole Lubelskie Trawniki Number of new sole proprietorships registered (2012): 12,817, Bychawa down 2.9% y/y Krasnystaw Kraśnik Recent major investors: AugustaWestland, ABM GreiffenbergAnnopol er, Aliplast, Genpact, Jeronimo Martins Holding, Roto Frank Sources of major foreign investment: China, Germany, Italy, Bodaczów Janów Netherlands, Portugal, Sweden, US Lubelski

Lubelskie voivodship The voivodship’s location along the eastern border of Poland provides a number of advantages for the region.

Lubelskie voivodship offers direct road connections to and from Eastern European countries, with the Ukrainian border serving as a gateway.

There are six transcontinental road and railway routes from Brussels, Berlin and Warsaw to Lviv, Odessa, Kiev, Minsk and Moscow running through the region and six bordercrossing points.

The economy of the region is based on agriculture.

Thanks to its good soil and climate conditions Lubelskie is a national leader in agriculture and horticulture. Top crops include hops, apples, raspberries, currants and strawberries. In recent years there has been rapid development of

Łuków

Piszczac

In 2013, Lublin was one of the leaders in Poland in terms of budget funds allocated for infrastructure investment, amounting to z∏.670 million. Some of the key projects in the city include its northern ring-road, currently under construction, as well as the international Lublin Airport opened in December 2012, which now offers flights to London, Dublin, Oslo, Liverpool, Gdaƒsk and several holiday resorts.

Mayor: Krzysztof ˚uk Area code: 81 Area: 147.5 sq km Population (Dec. 2012): 347,678 Working-age population (Dec. 2011): 226,743 Unemployment rate (June 2013): 10.1% Percentage of city covered by zoning plans: 45.3% Recent major investors: ABM Greiffenberger, Alior Bank, Proama, Sii

Lubelskie Marshall’s Office Promotion of Trade and Investment Section Investor Assistance Centre invest.lubelskie.pl ul. Stefczyka 3, 20-151 Lublin ☎ +48 81 537-1621 coi@lubelskie.pl Dariusz Donica, head of the section, English and German speaker: dariusz.donica@lubelskie.pl ☎ +48 81 537-1611 Dorota Gardza∏a, project manager, English speaker: dorota.gardzala@lubelskie.pl Arkadiusz ¸apaj, project manager, English speaker: arkadiusz.lapaj@lubelskie.pl Sylwia Kolbus, project manager, English speaker: sylwia.kolbus@lubelskie.pl Beata Woroszy∏o, project manager, English speaker: beata.woroszylo@lubelskie.pl

Contacts: Strategy and Investor Assistance Department lublin.eu Pl. Litewski 120-109 Lublin ☎ +48 81 466-2500 + 48 81 466-2501 inwestorzy@lublin.eu Anna Jurys, project manager, English and French speaker: anna.jurys@lublin.eu Honorata K´powicz-Olszówka, project manager, English and Russian speaker: honorata.olszowka@lublin.eu Diana Ciszewska, project manager, English speaker: diana.ciszewska@lublin.eu ☎ +48 81 466-2507

Find this content and more in Investing in Poland 2014. Information and key data about all of Poland’s voivodships can be found inside. Also, find analyses of major trends moving Poland’s economy. Want more?

Pick up the publication or visit WBJ.pl for more information.

AVAILABLE

NOW!

With Ghelamco about to launch three new retail projects and some 450,000 sqm of retail space scheduled to be delivered in H2 2013, the Polish retail market is looking at a major boom

Echo Investment held a “foundation act” signing ceremony on its West Gate project in Wroc∏aw 19

19

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

SEPTEMBER 23-29, 2013, LI 18/37

Logistics

Strabag will modernize the western part of the Gdynia seaport, creating a class-A loading and logistics area

out between 2012 and 2014.

Infrastructure projects alone will cost over z∏.324 million.

They will include redeveloping the waterfront, building a network of access roads and a new loading and logistics area.

The modernization of Gdynia’s seaport is part of a larger trend, which involves the redevelopment of Poland’s entire coastal area, according to Jones Lange LaSalle’s recent report.

The new storage and logistic space currently under construction allows companies located close to the coast to lower their transportation and container leasing costs, but also to accelerate market entry and lower damage risks. Warehouses located near seaports can also be used to store products traded on the commodities futures markets, like metals, coffee or cocoa, thus creating new opportunities in the Polish market, JLL’s experts say.

Strabag has signed a contract for the construction and modernization work on the Nabrze˝e Bu∏garskie part of Gdynia’s waterfront. The modernization will involve improving the port’s infrastructure and creating a new loading and logistics area with class-A warehouse space in the western part of the port.

According to the contract the company signed with Port of Gdynia Authority (ZMPG), which manages the seaport, it will be paid z∏.77 million for the project.

ZMPG has earmarked over z∏.451 million for several repair and modernization projects which will be carried

The report states that the increase in the number of container terminals, especially deep-water terminals, will have a positive influence on the Polish industrial warehousing market, particularly in regions close to the coast. The inflow of products and the opening of new transportation opportunities will stimulate the logistics sector, including trans-shipment centers located in Poland.

As three out of Poland’s seven neighbors are landlocked countries, the country’s favorable geographical location ensures the expansion of its container port catchment areas to border regions of neighboring countries. Additionally, investments in railway, intermodal and road infrastructure (the A1 and S3 expressways), will improve connectivity with the south.

Improved connections between the countries in the region can boost the competi-

COURTESY OF PORT GDYNIA

Container ports shape Polish warehouse sector

Port of Gdynia plans to spend over z∏.451 million on modernization in 2012-2014 tiveness of Polish terminals in the CEE region.

According to the report, the growth in seaports will drive the demand for warehouses located not only in the northern part of the country, but throughout its entirety –

following the streamlining of distribution lines.

The research shows that 48 percent of the respondents plan to increase the volume of goods stored in warehouses on the coast in the next few years. It is an impressive result given that

this region makes up only 3 percent of the Polish warehouse market. The increased demand is mostly the product of the expansion of natural catchment areas for Polish ports and their increased throughput.

Karolina Kowalska

Retail

Grand opening of Galeria Katowicka The mall will form part of a transportretail-office complex

In this issue Coastline warehouses . . . . . . . . . .17 Galeria Katowicka opens . . . . . . . .17 Retail market . . . . . . . . . . . . . . . . . .19 West Gate . . . . . . . . . . . . . . . . . . . . .19

COMMERCIAL DEVELOPMENT FOR SALE WARSAW, POLAND, UL.TASMOWA 5 OVER 9,500 SQM OF LAND WITH OVER 4,100 SQM OF BUILDINGS OF POSSIBLE INTEREST TO INVESTORS AND DEVELOPERS. COURTESY OF NEINVER

Developer Neinver has officially launched its Galeria Katowicka shopping mall in Katowice, the capital of Silesia. The four-storey, glass-layered retail center, designed by SUD Architekt studio, cost a total of €250 million to build.

It will house 220 stores on its 53,000 sqm of GLA and will offer 1,200 parking spaces.

The opening ceremony was attended by a number of local politicians, businesspeople and celebrities, including Neinver Group’s founder and president Jose Maria Losantos del Campo, Katowice mayor Piotr Uszok, the city’s deputy mayor Krystyna Siejna and PKP board member Piotr Ci˝kowicz.

The shopping mall’s tenants include retailers Zara, Euro RTV AGD, Rossmann, Promod, Mango, Bershka, Smyk, Deichmann and CCC. The entertainment floor will

DEVELOPMENT POTENTIAL FOR

OFFICES, HOTEL, SERVICES,

The construction of the four-storey shopping center cost a total of €250 million be anchored by the Multikino movie theater chain.

Galeria Katowicka is part of an integrated transport, retail and office complex that will comprise a railway station, an underground bus terminal and a class-A office building. The project is a joint venture between Nein-

ver, Meyer Bergman and state-owned rail operator PKP. The first part of the transport hub, a modern railway station, was launched last October. The adjoining bus station was completed in February this year. The entire investment took two and a

half years to complete.

Neinver, which has been active in the Polish market since 2000, is known for projects such as the Factory outlet center in Warsaw’s Ursus district and the Galeria Malta shopping and entertainment center in Poznaƒ.

Karolina Kowalska

LOCATION IN HIGHLY DEVELOPING DISTRICT

CONTACT: PKM DUDA S.A. UL. KLOBUCKA 25, 02-699 WARSZAWA TEL. (+48) 22 319 94 00 EMAIL: TASMOWA@PKMDUDA.PL

LOKALE IMMOBILIA – REAL ESTATE

SEPTEMBER 23-29, 2013

Retail

Polish retail market booming Developer Ghelamco, until recently specializing mainly in the office and residential segments, has announced it will build three new shopping centers in and around the Polish capital.

The first one, located in Warsaw’s Wilanów district and called Plac Vogla, will offer some 50 stores on 11,000 sqm and a parking lot with 400 spaces. Ghelamco expects the building permit to be issued within the next two months.

The developer wants to complete construction by mid-2014.

The second shopping center will be located in Piaseczno, 17 km south of the center of Warsaw.

Named Pasa˝ Tukanów, it will offer some 30

COURTESY OF GHELAMCO

Ghelamco will soon launch construction on three new shopping centers

Plac Vogla in Warsaw’s Wilanów district will offer some 50 stores on 11,000 sqm Poland’s retail market has seen a number of projects completed recently. The total supply of new modern retail space totaled nearly 200,000 sqm in H1 2013, increasing the total floorspace to 11.2 million sqm by the end of June 2013.

The largest shopping center to open in H1 was Europa Centralna in Gliwice, offering 67,000 sqm. Another wave of retail supply is expected to come out of the pipeline in H2, according to the latest report

by Cushman & Wakefield.

Apart from shopping centers, Poland’s retail park segment is also experiencing rapid growth with several developers strongly active on the market.

Discount stores continue to move ahead with their expansion strategies by establishing a foothold in shopping centers and in downtown locations.

“This year’s main wave of new supply – more than 80 per-

stores on 7,000 sqm. The investor hopes to deliver the scheme in Q4 2014. The third center, located in ¸omianki, 14 km north of Warsaw, is expected to house 60 stores on 11,500 sqm and is scheduled to be completed in Q1 2015.

Shopping frenzy Retail centers in cities with over 200,000 residents (H1 2013) City

Existing retail schemes

Retail schemes under construction

Warsaw agglomeration

42

1

Katowice agglomeration

41

3

Tri-City agglomeration

24

1

Wroc∏aw agglomeration

19

0

Poznaƒ agglomeration

17

2

Kraków agglomeration

14

1

¸ódê agglomeration

14

1

Lublin

10

4

Szczecin

10

1

Bydgoszcz

8

0

Bia∏ystok

6

1

Radom

5

0

Cz´stochowa

4

0

Kielce

4

0

Toruƒ

4

1 Source: Cushman & Wakefield

cent – is expected in the second half of 2013 with the scheduled delivery of nearly 450,000 sqm,” said Piotr Kaszyƒski, partner at Cushman & Wakefield.

“The annual retail supply may, however, dwindle slightly in the next two years given the current pipeline. Due to the current demand level, the marketing period for new schemes has become much longer. Demand is driven primarily by large nonfood retailers interested in prime locations and favorable lease conditions. Smaller chains are more cautious,” Mr Kaszyƒski added.

The report states that rents continue to vary depending on the location and scheme, with substantial differences between headline and effective rents. Prime shopping centers in Warsaw command the highest monthly rates at €7585/sqm.

Karolina Kowalska

Office

The L-shaped office scheme will deliver 16,000 sqm of GLA on six floors Warsaw Stock Exchange-listed developer Echo Investment has officially launched construction on its West Gate office project on ul. Lotnicza 12 in Wroc∏aw, Lower Silesia.

Even though work on the construction site commenced in December 2012, the ceremony, which included signing an official “foundation act” for the building, marks the official start of the project.

The document, which usually lists all the parties involved in the project, was signed by the deputy mayor of Wroc∏aw Adam Grehl, the president of the board of Echo Investment Piotr Gromniak and Robert Muszyƒski the president of the board of Kielce-based Arcad

architectural studio, which designed the building.

The L-shaped office scheme will deliver 16,000 sqm of GLA on six floors. It will also contain an underground parking lot. Its facade will be dominated by large glazed areas. It is situated at the intersection of ul. Na Ostatnim Groszu, ul.

Milenijna and ul. Legnicka. Its location allows for easy access to Wroc∏aw’s center and the city’s airport through the A8 highway bypass, part of the north-south S8 expressway.

“Our company has been present in Wroc∏aw’s market for six years. Thanks to our successful cooperation with the city authorities we were able to carry out projects in all three of the key segments of our company’s operations: [shopping mall] Pasa˝ Grunwaldzki, [office building] Aquarius Business House and the Przy

COURTESY OF ECHO INVESTMENT

West Gate construction officially launched

The developer is in the process of securing a BREEAM certificate for the building S∏owiaƒskim Wzgórzu residential estate,” said Mr Gromniak.

The value of the developer’s projects in Wroc∏aw exceeded z∏.1.2 billion and provided useable area of 80,000 sqm.

The building will be equipped with energy-efficient air conditioning and ventilation systems, suspended ceil-

ings, raised floors and an environmental-friendly lighting.

Cyclists commuting to work in the building will have bike racks, showers and locker rooms at their disposal. The developer is in the process of securing a BREEAM certificate for the building.

Karolina Kowalska

www.wbj.pl

19

20

MARKETS

www.wbj.pl

SEPTEMBER 23-29, 2013

Stocks report

world stock indices DJIA

NASDAQ

15,636.55 (Sep 19 close)

S&P500

3,789.38 (Sep 19 close)

2.20% (for the week)

FTSE100

1,722.34 (Sep 19 close)

1.98% (for the week)

DAX

6,654.34 (Sep 20 close)

2.31% (for the week)

1.07% (for the week)

Calm before the storm

NIKKEI 8,675.73 (Sep 20 close)

14,742.42 (Sep 20 close)

1.95% (for the week)

2.34% (for the week)

CHANGE: 16.58% (year to Sep 19)

CHANGE: 21.76% (year to Sep 19)

CHANGE: 17.77% (year to Sep 19)

CHANGE: 10.40% (year to Sep 20)

CHANGE: 11.53% (year to Sep 20)

CHANGE: 37.93% (year to Sep 20)

52-week high: 15,709.58

52-week high: 3,798.15

52-week high: 1,729.86

52-week high: 6,875.60

52-week high: 8,767.97

52-week high: 15,942.60

52-week low: 12,471.49

52-week low: 2,810.80

52-week low: 1,343.35

52-week low: 5,605.60

52-week low: 6,950.53

52-week low: 8,488.14

Omar Arnaout Noble Securities SA

Major indices WIG

50,308.19 (September 20 close)

WIG20

2,408.16 (September 20 close)

20.09

19.09

18.09

17.09

16.09

13.09

12.09

11.09

10.09

09.09

06.09

05.09

04.09

20.09

19.09

18.09

17.09

16.09

13.09

12.09

11.09

10.09

09.09

2,200

06.09

44,000

05.09

2,260

04.09

45,400

03.09

2,320

02.09

46,800

30.08

2,380

29.08

48,200

28.08

2,440

27.08

49,600

26.08

2,500

03.09

52-week low: 2,177.02

02.09

Change year to September 20: -8.30%

30.08

52-week low: 43,145.55

29.08

52-week high: 2,628.36

Change year to September 20: 4.57%

28.08

Change for the week: 1.38%

27.08

52-week high: 50,308.19

26.08

Change for the week: 1.94%

51,000

Top 5 MEDIATEL EFH CALATRAVA EXILLON FOTA

Closing 1.24 1.00 0.03 9.70 1.68

% change (week) 52-week high 188.37 1.82 72.41 2.50 50.00 0.53 42.65 9.70 38.84 6.15

52-week low 0.24 0.34 0.02 5.70 0.30

Top 5 JSW PZU PKNORLEN PEKAO TAURONPE

Closing 81.00 440.10 44.89 177.00 4.82

% change (week) 5.40 4.22 4.15 3.51 3.43

52-week high 94.15 453.60 55.56 181.20 4.85

52-week low 57.70 333.58 39.52 139.00 3.67

Bottom 5 IDMSA MEWA MOBRUK PEPEES KBDOM

Closing 0.08 0.19 33.00 0.52 0.04

% change (week) -38.46 -34.48 -29.79 -20.00 -20.00

52-week low 0.07 0.15 31.00 0.52 0.02

Bottom 5 PKOBP SYNTHOS KERNEL GTC TPSA

Closing 36.10 5.15 51.71 7.20 7.80

% change (week) -4.62 -1.34 -1.32 -0.28 0.00

52-week high 37.72 6.00 72.35 10.25 15.53

52-week low 30.63 4.12 45.10 6.58 5.83

52-week high 0.28 0.42 60.00 0.95 0.19

Analyzing last week’s WIG20 futures index, most could get the impression that it was a relatively calm period.

Between Monday and Wednesday the index didn’t move much.

Most investors were awaiting the US Federal Reserve decision on whether to taper the Quantitative Easing program or not.

Then Ben Bernanke shocked the world with a decision that nothing would be changed for the moment and that the central bank would still be buying $85 billion in bonds every month.

It was an unexpected move which had a positive influence on global stock markets.

The WIG20 futures index is currently very close to the level it was at before the markets plummeted after the Pol-

Currency report

Other indices sWIG80

Change for the week: 1.44%

52-week high: 3,253.52

Change for the week: 1.09%

Change year to September 20: 25.74%

52-week low: 2,312.81

Change year to September 20: 24.77%

NewConnect

314.85 (September 20 close)

52-week high: 13,140.38 52-week low: 9,616.44

WIG-Banki

20.09

19.09

18.09

17.09

16.09

13.09

12.09

11.09

10.09

05.09

04.09

03.09

02.09

30.08

29.08

28.08

27.08

Adam Narczewski X-Trade Brokers DM SA

26.08

20.09

19.09

18.09

17.09

16.09

13.09

12.09

11.09

10.09

09.09

11,500 06.09

2,700

05.09

12,000

04.09

2,820

03.09

12,500

02.09

2,940

30.08

3,060

13,000

29.08

13,500

28.08

3,180

27.08

14,000

26.08

3,300

7,503.20 (September 20 close)

SOURCE: WSE

20.09

19.09

18.09

17.09

16.09

13.09

12.09

11.09

10.09

09.09

06.09

05.09

04.09

20.09

19.09

18.09

17.09

16.09

13.09

12.09

11.09

10.09

09.09

6,300 06.09

296.0

05.09

6,600

04.09

300.8

03.09

6,900

02.09

305.6

30.08

7,200

29.08

310.4

28.08

7,500

27.08

315.2

26.08

7,800

03.09

52-week low: 6,108.94

02.09

Change year to September 20: 11.60%

30.08

52-week low: 296.29

29.08

52-week high: 7,754.29

Change year to September 20: -5.22%

28.08

Change for the week: 1.44%

27.08

52-week high: 353.00

26.08

Change for the week: -0.80%

320.0

Hurricane Ben hits markets

13,140.38 (September 20 close)

09.09

3,229.62 (September 20 close)

06.09

mWIG40

ish government announced its changes to the private pension funds (OFEs).

Currently from the technical point of view, a strong signal for growth continuation would be breaking the 2432 points threshold, which was the value before the market plummeted.

What has to be mentioned is that the market is currently within the borders of significant levels of resistance, signaling that investors should be cautious.

The banking sector also had positive results with the shares of Pekao and Citi Handlowy noting an increase, but on the other hand investors could not be satisfied with the performance of BRE Bank which underperformed compared to the previously mentioned stocks. ●

In a surprising move, the Fed decided not to reduce its asset repurchase program last Wednesday.

Nobody was prepared for such news as Ben Bernanke had been signaling an end to the program since June.

Markets reacted instantly and abruptly.

The EUR/USD shot up from levels just above $1.33 all the way to $1.3550, its highest level since February of this year.

The Fed also gave a positive impulse to the z∏oty, which has been losing ground for the last couple of weeks as capital was leaving emerging markets.

The local currency regained strength and reached levels unseen since May (z∏.4.14 against the euro and z∏.3.35

against the Swiss franc) and February (z∏.3.06 against the USD).

Traders, as usual, ignored macroeconomic data from the local economy, since all of them were in line with expectations (CPI, wages and industrial production). By the end of the week, the z∏oty had given up some of those gains and the EUR/PLN finished at z∏.4.22 while the USD/PLN at z∏.3.12. This week, positive sentiment towards the z∏oty should remain but levels below zl.4 (EUR/PLN) or zl.3 (USD/PLN) are highly unlikely. Market volatility will remain high as we do not know when the Fed will finally decide to reduce the QE program. ●

currency rates 3.1337

3.2054 18.09

SOURCE: NBP

3.1804 17.09

3.1195

3.1789 16.09

20.09

3.1796 13.09

0.0976

0.0980 20.09

3.1

19.09

100JPY/PLN

3.3

19.09

0.0982 18.09

0.0975 17.09

16.09

13.09

20.09

3.4215

0.0968

3.3889 19.09

0.09

0.0974

RUB/PLN

0.10

3.4217 18.09

17.09

16.09

3.3

13.09

20.09

3.4074

3.4024

4.9972

4.9567

3.3937

CHF/PLN

3.5

19.09

5.0576 18.09

17.09

5.0201

5.0094

5.0104

GBP/PLN

16.09

4.8

13.09

3.0833

3.1152 20.09

18.09

17.09

16.09

13.09

20.09

3.0

5.2

19.09

3.1689

3.1552

3.1696

USD/PLN

4.2144

4.1790 19.09

4.2302 18.09

4.2144 17.09

16.09

4.1961

4.2110 13.09

4.1

3.3

3.1435

EUR/PLN

4.4 4.3

THE LIST

SEPTEMBER 23-29, 2013

www.wbj.pl

21

Construction & Real Estate

Commercial Real Estate Developers - Office Ranked by office investments completed in 2012

Rank

A guide to Polish business and industry

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

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

Office investments completed: GBA (sqm)

Office investments completed: GLA (sqm)

Key current investments: name (location; GBA - sqm; GLA - sqm; class; planned completion year)

Specialization

Total number Largest investments completed: name of employees / (location; GBA - sqm; GLA - sqm; class; Year founded year completed) in Poland

Ownership: Polish / Foreign

Top local executive / Title

2012 / 2011 / 2010 / 2009 / Overall Mera Hotel & Spa (Sopot; 17,000; 13,000; hotel; 2012); Brama Portowa (Szczecin; 20,000; 12,900; A; 2012); Business Garden Warszawa - 1st phase (Warsaw; 55,000; 32,165; A; 2012); N21 (Warsaw; 4,000; 3,400; A; 2008); University Business Center (Warsaw; 45,000; 30,000; B; 2001); Cracovia Business Center (Kraków; 25,000; 15,000; A; 1998); SwedeCenter (Warsaw; 14,000; 11,000; B+; 1994)

43 1992

WND

Roger Andersson

Gdaƒski Business Center I (Warsaw; 71,513; 45,600; A; 2014)

WND

45 2009

WND

Stanislav Frnka

Warsaw Spire (Warsaw; 279,000; 100,000; A; 2014/2015)

Marynarska 12 (Warsaw; WND; 40,000; A; 2013); ¸opuszaƒska Business Park (Warsaw; WND; 17,000; A; 2013); Senator (Warsaw; 45,000; 25,000; A; 2012); Mokotów Nova (Warsaw; 79,000; 40,000; A; 2011); Crown Square (Warsaw; 24,000; 16000; A; 2010); Trinity Park III (Warsaw; 60,000; 30,500; A; 2009)

157 1991

None Ghelamco Group - 100%

Jeroen van der Toolen

Nordea House/Green Corner (Warsaw; 23,000; A; 2012); Green Towers A (Wroc∏aw; 21,500; Atrium 1 (Warsaw; 30,353; 18,300; A; 2013); Malta 14,800; 12,400; A; 2012); Green Horizon A (¸ódê; 32,000; House (Poznaƒ; 28,960; 15,800; A; 2013); Green Day 19,200; A; 2012); Deloitte House (Warsaw; WND; (Wroc∏aw; 28,757; 15,977; A; 2014) 20,000; A; 2009); Grunwaldzki Center (Wroc∏aw; WND; 27,000; A; 2009)

66 1997

None Skanska Project Development Europe - 100%

Poleczki Business Park - 2nd phase (Warsaw; 21,000; WND; A; 2012); Galeria Szperk (Gdynia Kosakowo; 23,000; WND; WND; 2012); Park Handlowy Tatary (Lublin; 27,000; WND; WND; 2012); Poleczki Business Park - 1st phase (Warsaw; 45,000; WND; A; 2010); Angelo Katowice Hotel (Katowice; 17,000; WND; WND; 2010); Andel’s Hotel (¸ódê; 41,000; WND; WND; 2009)

60 1993

None UBM Realitatenentwicklung - 100%

WND

Wilanów Office Park B3 (Warsaw; 16,516; 5,331; B+; 2012); Wilanów Office Park B1 (Warsaw; 14,420; 4,726; A; 2011)

110 1977

Prokom Investments - 27.2%; Osiedle Wilanowska - 5.9%; other shareholders - 58.4% Templeton Asset Management 10.6%

Shopping and entertainment centers; office, residential buildings; hotels

Aquarius Business House - 2nd phase (Wroc∏aw; 13,000; 11,000; A; 2013); West Gate (Wroc∏aw; 18,000; 16,000; A; 2014); A4 Business Park - 1st phase (Katowice; 11,000; 9,000; A; 2014)

Aquarius Business House - 1st phase (Wroc∏aw; 16,000; 14,200; A; 2012); Oxygen (Szczecin; WND; 14,000; WND; 2010); Park Post´pu (Warsaw; WND; 34,000; A; 2009); Centrum Olimpijskie (Warsaw; WND; 7,800; A; 2004); Babka Tower (Warsaw; WND; 13,500; A; 2001)

350 1994

Micha∏ So∏owow - 44.4% None

7,940 NA NA NA

Office, retail and residential buildings

WND

Okràglak (Poznaƒ; 12890; 7940; A; 2012)

WND 2011

WND

WND WND WND WND WND

WND WND 11,998 15,241

WND

WND

Adgar Plaza B (Warsaw; WND; 11,998; A; 2010); Adgar Plaza A (Warsaw; WND; 15,241; A; 2009); Adgar Business Centre I (Warsaw; WND; 12,378; B; 2000)

8 1999

None Adgar Investment and Development Poland - 100%

AIG/Lincoln Polska Sp. z o.o. ul. Grzybowska 5A, 00-132 Warsaw NR 22 564-5000/22 564-5085 office.warsaw@aiglincoln.com.pl www.aiglincoln.com.pl

WND WND WND WND WND

WND WND WND 10,400

Office buildings; shopping malls; warehouses

WND

WND

WND 1997

WND

Aldesa Polska Diamante Plaza Sp. z o.o. ul. Dekerta 24, 30-703 Kraków NR 12 421-0953/12 421-0953 diamante@aldesa.pl www.aldesa.pl

WND WND WND 17,962 WND

WND WND WND 10,263

Developer

WND

WND Diamante Plaza (Kraków; 19,785; 18,141; A; 2010)

WND 2006

None Aldesa Construcciones - 100%

Miguel Ortega Lopez

Avestus Real Estate Sp. z o.o. ul. Nowogrodzka 47A, 00-695 Warsaw NR 22 520-6000/22 520-6001 ostanowska@avestusrealestate.com www.avestusrealestate.com

WND WND WND WND WND

15,165 WND WND WND

Commercial, residential buildings

Enterprise Park C (Kraków; WND; 13,500; A; 2013)

Enterprise Park A, B (Kraków; WND; 15,165; A; 2012)

38 1990

WND Avestus Real Estate

Mariusz Fràckiewicz

Capital Park SA ul. Marynarska 11, 02-674 Warsaw NR 22 318-8888/22 318-8889 biuro@capitalpark.pl www.capitalpark.pl

WND 4,982 WND WND WND

WND 2,444 WND WND

Office, retail buildings

Eurocentrum (Warsaw; 70,000; 65,800; A+; 2014)

Rac∏awicka Point (Warsaw; 4,982; 2,444; A; 2011)

48 2003

WND

ECC Real Estate Sp. z o.o. ul. Ostrobramska 75C, 04-175 Warsaw NR 22 611-3700/22 611-3753 info.europe.ce@eccrealestate.com www.eccrealestate.com

WND WND WND WND 22,500

WND WND WND WND

Retail, residential, office buildings

Milano (Warsaw; 2,500; 1,530; B; WND): Promenada Resort Mall (Chiang Mai, Thailand; 90,000; WND; WND; WND) “Podkowa” housing development (Warsaw; 33,000; WND; WND)

WND

WND 1989

ECC Holdings Poland WND

Adrian Heymans

Globe Trade Centre SA ul. Wo∏oska 5, 02-675 Warsaw NR 22 606-0700/22 606-0410 gtc@gtc.com.pl www.gtc.com.pl

WND WND WND WND 348,500

12,000 22,300 40,800 26,600

Office, residential buildings; shopping malls

WND

Platinium Business Park V (Warsaw; WND; 12,000; A; 2012); Corius/Ok´cie Business Park (Warsaw; WND; 9,225; A; 2011); Platinium Business Park IV (Warsaw; WND; 13,000; A; 2011); University Business Park (¸ódê; WND; 19,300; A; 2010); Centrum Finansowe Francuska (Katowice; WND; 21,500; A; 2010)

WND 1994

ING OFE - 12.3%; Aviva OFE - 6.9%; OFE PZU - 6.7% GTC Real Estate Holding - 27.8%

Piotr Kroenke

S+B Plan und Bau Warschau Sp. z o.o. ul. Mokotowska 1, 00-640 Warsaw NR 609-307-099/22 375-3010 izabella.kieler@sb-gruppe.at www.sb-gruppe.at

WND WND 17,800 WND WND

WND WND 16,160 WND

Office, retail, residential buildings; hotels

Wspólna Project (Warsaw; WND;WND;WND; WND); Królewska Project (Warsaw; WND; WND; WND; WND)

Zebra Tower (Warsaw; 17,800; 16,160; A; 2010)

WND 2007

WND

Edmund Volker

Yareal Polska Sp. z o.o. ul. Mokotowska 49, 00-542 Warsaw NR 22 331-3000/22 331-3011 office@yareal.com www.yareal.pl

WND WND WND WND WND

WND WND WND 10,300

Office, residential buildings

WND

Mokotowska Square (Warsaw; 9,600; WND; A; WND)

WND 2005

None Yareal International - 100%

Eric Dapoigny

SwedeCenter Sp. z o.o. ul. ˚wirki i Wigury 18A, 02-092 Warsaw 1 22 370-1440/22 820-9140 info@swedecenter.pl www.swedecenter.pl

92,000 180,000

58,100 -

HB Reavis Poland Sp. z o.o. ul. Konstruktorska 13, 02-673 Warsaw 2 22 203-4420/22 203-4421 poland@hbreavis.com www.hbreavis.com

84,276 84,276

48,040 -

Ghelamco Poland Sp. z o.o. ul. Wo∏oska 22, 22-675 Warsaw 3 22 455-1600/22 455-1610 ghelamco@ghelamco.com www.ghelamco.com

45,000 79,000 51,000 60,000 400,000

25,566 41,413 33,000 32,000

Skanska Property Poland Sp. z o.o.

Al. Jana Paw∏a II 19, 00-854 Warsaw 4 22 653-8400/22 653-8401 offices@skanska.pl www.skanska.pl

44,000 WND WND WND 180,600

27,200 WND WND WND

Office buildings

UBM Polska Sp. z o.o. ul. Poleczki 35, 02-822 Warsaw 5 22 356-8000/22 356-8001 biuro@ubm.pl www.ubm.pl

21,000 WND 45,000 WND WND

WND WND WND WND

Commercial real estate; hotels; residential investments

Alma Tower (Kraków; 10,000; WND; A; 2014)

Polnord SA ul. Âlàska 35/37, 81-310 Gdynia 6 22 351-9600/22 351-9601 polnord@polnord.pl www.polnord.pl

16,516 14,420 30,936

10,014 7,827 -

Residential, commercial buildings

Echo Investment SA Al. SolidarnoÊci 36, 25-323 Kielce 7 41 333-3333/41 333-2333 office@echo.com.pl www.echo.com.pl

16,000 WND 49,800 53,200 WND

14,200 WND 33,800 33,000

Immobel Poland Sp. z o.o. ul. Bonifraterska 17, 00-203 Warsaw 8 22 351-0190/22 351-0191 office@immobelpoland.com www.immobelpoland.com

12,890 NA NA NA 12,890

Adgar Post´pu Sp. z o.o. ul. Post´pu 17A, 02-676 Warsaw NR 22 323-8100/22 323-8103 biuro@adgar.pl www.kompleks-adgar.pl

Business Garden Poznaƒ - 1st phase (Poznaƒ; 69,300; 42,000; A; 2014); Business Garden Warszawa - 2nd Office buildings; business phase (Warsaw; 90,000; 56,250; A; 2015); Business parks; hotels Garden Wroc∏aw - 1st phase (Wroc∏aw; 55,000; 35,000; A; 2015)

Office, retail buildings

Office, residential buildings; warehouses

Notes: Notes: GBA = Gross Building Area, GLA = Gross Leasable Area, NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for The List was conducted in February 2013. Number of employees and ownership structure are as of February 2013. All information pertains to the companies’ activities in Poland.

Only 17 companies are listed. The entire list is available at: www.bookoflists.pl

Managing Director

CEO

Managing Director

Waldemar Olbryk President

Peter Obernhuber; Sebastian Vetter Board Members

Piotr Weso∏owski President

Piotr Gromniak President

Bart∏omiej Hofman President

Eyal Litwin Country Manager

Brian Patterson; Miros∏aw Szydelski Managing Director; Investment Director

General Director

Director

Jan Motz President

President

General Director

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.

22

SPORTS

www.wbj.pl

SEPTEMBER 23-29, 2013

American football

The winning streak is over

Holland spoils Poland’s 11-man debut

After a 5 game undefeated run, Poland lost to Autralia, failing to achieve qualification to the World Group stage

The Netherlands dominated until the fourth quarter, winning 37-14

¸ukasz Kubot lost his two games against Australia’s tennis players Meanwhile Poland had two players who played in this year’s Wimbledon quarterfinal (¸ukasz Kubot and Jerzy Janowicz) and a reliable Mariusz Fyrstenberg/Marcin Matkowski doubles team.

However, Poland was dealt a serious blow before the series even started with Mr Janowicz (currently ranked 14th) withdrawing due to a back injury.

He was replaced by Micha∏ Przysi´˝ny. Poland lost the first two games. Mr Kubot lost to Mr Hewitt and Mr Przysi´˝ny was defeated by Bernard Tomic. Both games ended in

three straight sets.

Poland kept its hopes alive, after the doubles game, in which the Fyrstenberg/Matkowski team defeated Nick Kyrgios/Chris Guccione (5-7 6-4 6-2 6-7 6-4).

But in order to advance further, Poland had to win the remaining two games.

But all hope disappeared when Mr Tomic defeated Mr Kubot in three straight sets.

The last game of the series, ended in the first set after Mr Przysi´˝ny retired with an injury while he was losing 1-4.

Jacek Ciesnowski

DAILY EXECUTIVE DIGEST Poland A.M. gives you the biggest Polish stories of the day.

Have the most valuable news delivered to your inbox each weekday morning.

S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l

Poland’s national American football team lost its first game under standard rules (they had played Sweden in February in an arena football game), but nevertheless showed plenty of promise.

Disaster struck early for the Polish team, as Tomasz Dziedzic fumbled on the return of the initial kickoff, giving Dutch quarterback Richard Bouthoom a short field to work with. He capitalized two minutes later with a short touchdown pass to Tom van Duijn.

Poland tried both Micha∏ Ko∏ek and Damian Ko∏pak at quarterback in the first half, but neither was able to get much going on offense. Both of the first two drives, each with a different quarterback at the helm, lasted only three plays. The first half ended in a 19-0 result for the Dutch.

The second half began even worse for Poland than the first, as they quickly lost 12 consecutive points, and the visiting

team gained a big 31-0 lead.

The 2,900-strong crowd finally came to life on the extra point attempt, which was blocked by the Polish defense.

Karol Mogielnicki picked up the ball after a mad scramble, and was able to take it 90 yards to get two points on the board for the home team. This brought some much-needed hope for the Polish team, as they finally won the fourth quarter of the game (12-6). The game ended in 37-14 win by the

Netherlands.

Despite the final scoreline, the Polish team members can hold their heads high after a performance that showed they belong on the same field as some of the more experienced players from other European countries. “Our team has the potential,” said J´drzej St´szewski, president of the Polish American Football League, “but we have a lot of work to do.”

COURTESY OF MARCIIN WARPECHOWSKI/PZFA

When in February of 2012, Poland played against Madagascar in the first round of last year’s Davis Cup Europe/Africa Zone Group II tournament, few expected that in some 18 months, Poland would be one step away from the prestigious World Group.

But after a series of five straight wins and promotion to Group I, only the Australian national team stood on the path to the elite tennis club.

With arguably the best group of tennis players it has had in years, Poland stood a big chance against a former powerhouse, Australia, which has won the Davis Cup a staggering 28 times. The Australian team’s biggest star, Lleyton Hewitt, who at the age of 20, was the youngest male ever to be ranked number one in the world, has now dropped out of the top 50 in the ATP rankings.

SHUTTERSTOCK

Tennis

The Netherlands beat Poland 37-14

Alex Zarganis

LIFESTYLE

SEPTEMBER 23-29, 2013

Music festival

www.wbj.pl

23

Comedy

Islands of the World Stand-up superstar

Cross-Culture Warsaw Festival September 25-29 Pl. Defilad Warsaw For the ninth straight year, musicians from all over the world will come to Warsaw and present their unique sounds.

The festival’s main attraction will be its annual Masters’ Concert. This year’s list of performers includes a Canadian specialist in throat singing, a Maori dance group from New

Zealand, a virtuoso on the ancient Sicilian flute, an Irish drummer and a Sufi singer from the coast of Tunisia.

Other musicians performing at the concert include Danyel Waro from French island Reunion, Calypso Rose of Trinidad & Tobago and New Zealand’s Moana & The Tribe.

The festival will also feature a “Sounds like Poland” concert with a number of Polish folk and ethnic artists showcasing their talents and distinct sounds.

The Cross-Culture Warsaw

Festival is one of the biggest events of this type in Poland, as well as in Central and Eastern Europe. Since its inception in 2005, the festival has become a cultural landmark on Warsaw’s multicultural scene. Over 150 individual artists and groups from over 50 countries have presented their art and music within the festival so far. Songlines magazine listed it as one of the 25 most interesting events in world music.

Single-day tickets cost z∏.30 Jacek Ciesnowski

Dylan Moran is probably best known for his role as Bernard Black, an anti-social, harddrinking and chain-smoking disorganized bookstore owner in the TV sitcom “Black Books,” (which he also cowrote). He also had roles in movies such as “Notting Hill,” “Shaun of the Dead” and many others. But Mr Moran is not only an actor and a writer, he’s primarily a stand-up comedian. With regular performances all over the world, he’s finally bringing his act to Poland as part of his latest “Yeah, Yeah” tour.

Moran’s unique style is often described as deadpan, satirical and dark. He tackles a wide range of topics in his routine, including sex, death, politics, religion. “Dark, dry and relentlessly sharp, ‘Yeah, Yeah’ is Dylan Moran’s roller coaster ride of emotion, hilarity, poignancy and joy as he deliberates life, love and disappointment with remarkable observation” is how Mr Moran’s official website describes the current tour.

COURTESY OF DYLAN MORAN

Moana & the Tribe

COURTESY OF STO∏ECZNA ESTRADA

Dylan Moran October 9 Warsaw Palladium Theater

Dylan Moran Organizers are hoping that Mr Moran’s name will attract a young audience and help expand Poland’s stand-up scene. There is an increasing number of up-and-coming Polish comedians making the rounds, but the scene is still dominated by a handful of

established names and comedy ensembles whose routines are targeted more at older audiences. There is no one better than Dylan Moran to prove that there is room for a new style of stand-up comedy in Poland.

Ticket prices start at z∏.105 Jacek Ciesnowski

To advertise in WBJ’s classifieds section, contact Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl

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2011-08-08 09:38:47