VOLUME 19, NUMBER 2 • JANUARY 21-27, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127 Since 1994 . Poland’s only business weekly in English WWW.WBJ.PL 6 Goodbye groszy? The National Bank of Poland unveils a plan to make 1- and 2-groszy coins obsolete 23 Sobolewski out The Treasury has dismissed the WSE’s CEO on ethics grounds 3 Forty percent of young Poles say they plan to start a new business. What do they need to be successful? 12-13 Mali, maybe? Poland’s foreign minister mulls sending Polish troops to Mali 3 SHUTTERSTOCK News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . .14-16 The List . . . . . . . . . . . . . . . . . . .18-19 Markets . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23 In this issue • PHN IPO • Ferio Wawer • Buyer’s market COURTESY OF ZDROJOWA INVEST LOKALE IMMOBILIA REAL ESTATE Startup nation www.martela.pl Time for a tablet Cheap tablet computers are pushing netbooks out of the Polish market 14-16
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VOLUME 19, NUMBER 2 • JANUARY 21-27, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127 Since 1994 . Poland’s only business weekly in English
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Goodbye groszy?The National Bank of Poland unveils a plan
to make 1- and 2-groszy coins obsolete23
SSoobboolleewwsskkii oouuttThe Treasury has dismissedthe WSE’s CEO on ethics grounds 3
Forty percent of young Poles say they plan to start anew business. What do they need to be successful?
12-13
MMaallii,, mmaayybbee??Poland’s foreign minister mullssending Polish troops to Mali 3
This week, politicians willdebate whether to legalize civilpartnerships for same-sex cou-ples. There are currently threelegislative projects proposingregulations on the matter,which the Sejm (the lowerhouse of Polish parliament)will begin debate on.
Socially liberal partiesPalikot’s Movement (RP) andthe Democratic Left Alliance(SLD), have together pro-posed two bills, and seniorgovernment coalition partnerCivic Platform (PO) has itsown proposal regarding theissue. Each of the proposalswould cover issues related toopposite-sex couples, as wellas same-sex ones.
The main differencebetween the two projects pro-posed by RP and SLD regards
the rights and responsibilitiesof the two partners. One spec-ifies that both sides will decideeach other’s rights and respon-sibilities in a notarial act, whilethe other one states that bothpartners will have the sameand equal rights. They bothstate that the civil partnershipwould have to be officially reg-istered to become legal.
The PO proposal is moreflexible. It states that thepartnership documents couldbe signed either in the pres-ence of a Public Registry offi-cial or a notary public. Itoffers many of the same legalrights to same-sex couplesafforded by marriage, includ-ing inheritance, pensionfunds, notary and medicalrights. Notably lacking fromthe bill, however, are adop-
tion, citizenship rights, andjoint tax benefits.
It also includes alimonyprivileges for partners that atthe end of the civil partnershipfind themselves in “poverty.”The alimony could be paid outfor up to three years.
It’s difficult to predictwhether any such law will bepassed by parliament. Oppos-ing them are right-wing par-ties Law and Justice and Soli-darna Polska. Politicians fromthe Polish People’s Party, thejunior coalition partner ingovernment, have also saidthat they will not support anylegislation that would makesame-sex civil partnershipslegal. There are also manyconservative members of POwho are likely to oppose theproposals as well. JC
105was the number of IPOs on the Warsaw Stock
Exchange in 2012, the most in Europe, according toPwC.
2.4% was the y/y growth in consumer prices in December.
48% is how many Polish companies are planning to hire
professionals and managers, according to AntalInternational
11%of Poles plan to change their job this year, compared
to over 60% who plan to stay put, according to a poll bythe Homo Homini Institute.
“Mali is much closer to Europe thanAfghanistan.”
Foreign Affairs Minister Rados∏aw Sikorski, speaking on the reasons for consid-ering the participation of Polish troops in an EU mission to Mali. There are cur-rently about 1,800 Polish troops participating in the ISAF mission inAfghanistan, according to Poland's Defense Ministry.
Quote of the Week
The end of Europe’s soft power?Eurocrats can no longer gloat about the EuropeanUnion’s soft power and its consequent moral superi-ority compared to the United States, says Robert D.Kaplan, chief geopolitical analyst at Stratfor. Readmore on WBJ.pl
On WBJ.pl
Numbers in the News
Company index
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Same-sex civil partnershipsIN THE SPOTLIGHT
Figures in focusTax-hungry in the westTax revenue as % share of GDP, selected EU countries
Source: Eurostat
24 ‘GERMANY AS BUSINESS TRAVEL DESTINATION’ SEMINAR
Event: The seminar, organized by the GermanNational Tourist Board, will present Germanyas a world leader in various industries, sci-ence and new technologies.
Location: Conference Room C, Expo XXI Center, ul. Pràdzyƒskiego 12/14, Warszawa
Web: germany.travel
29 INTERNATIONAL CONSTRUCTION FAIRBUDMA 2013
Event: The fair’s theme is “Construction of theFuture. Intelligent Architecture.” It will host,among other things, a testing zone with pre-sentations of tools, products and machinery,this year’s building premieres as well astalks by internationally renowned architects.
Location: Poznaƒ International Fair, ul. G∏ogowska 14,Poznaƒ
Web: budma.pl
January
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The country’s chiefdiplomat says he willnot rule out sendingPolish troops to aidthe Maliangovernment takeon Islamicfundamentalists
Foreign Affairs MinisterRados∏aw Sikorski hasannounced that Poland’s par-ticipation in the EU’s upcom-ing military training missionin Mali should not be ruledout. Mr Sikorski made thestatements on public radiowhile emphasizing that nodecisions have been made yet.However, he did point outthat the situation in Mali isimportant, as the country is
situated relatively close to theEU.
The EU agreed last weekto send hundreds of militarypersonnel to train Malian gov-ernment forces in fightingIslamist radicals, as a civil warin the country threatens tospill across its borders. Themission will comprise about200 military trainers as well assome security personnel.
Another Afghanistan?There is fear that Islamic fun-damentalists, who control anarea the size of France inNorthern Mali, will turn it intoan Afghanistan-style terroristbase and perhaps even try totake over the entire country.France has already begun mili-tary action in Mali to support
the government in the coun-try’s capital, Bamako.
Meanwhile, ECOWAS, theEconomic Community of WestAfrican States, will send atleast 2,000 troops to Mali inthe coming days. More areexpected afterwards.
The EU itself is not consid-ering a combat role in Mali.
‘In our interest’Mr Sikorski said he would con-sult with Prime Minister Don-ald Tusk and President Bro-nis∏aw Komorowski on the Maliissue.
Regarding factors Polandwould take into account whenmaking the decision to sendtroops to Mali, Mr Sikorskipointed out that Poland was stillinvolved in Afghanistan and
that it had already taken part inseveral missions in Africa, suchas in Congo and Chad.
However, Mr Sikorski alsosaid he believed that it is inPoland’s interest to “strengthenEuropean security and defensepolicy. No decisions have beenmade but I cannot rule it out inthe long run.”
Mr Sikorski added thatPoland understands and sup-ports France’s decision to sendtroops to Mali.
“We know how dangerous itis when terrorists have physicalcontrol of a territory, becausethen they can train and planoperations.”
He pointed out that Mali is“much closer to Europe thanAfghanistan.”
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“strengthen European security and defense policy”
Stock exchange
NNeeww pprreessiiddeenntt ooff WWSSEE aappppooiinntteeddThe bourse’smanagement boarddismissed LudwikSobolewski on ethicsgrounds
Adam Maciejewski is theWarsaw Stock Exchange’snew president, after thebourse’s shareholders ap-pointed him at an extraordi-nary general meeting lastThursday. Earlier that daythe WSE’s shareholders dis-missed Ludwik Sobolewskifrom the position.
Mr Sobolewski was sus-pended by the WSE’s super-
visory board on December21, 2012, following accusa-tions that he and his subor-dinate Emil St´pieƒ weresoliciting funds from com-panies listed on the stockmarket to support a moviefeaturing Mr Sobolewski’sgirlfriend.
The decision to replaceMr Sobolewski was made bythe Treasury Ministry, whichholds a 51.7 percent stake inthe exchange. The dismissalcomes a year and a halfbefore the end of MrSobolewski’s term.
Mr Sobolewski becamepresident of the WSE in
2006, when the market wasbooming, and led theexchange through the globaleconomic crisis with success.
Market experts see theWarsaw Stock Exchange’sIPO in 2010 as one of MrSobolewski’s biggest ach-ievements. The popularityof the WSE’s offer was larg-er than expected.
Mr Sobolewski has alsosuccessfully managed toattract foreign firms to theWarsaw Stock Exchange,increasing its regional foot-print as stock exchangesconsolidate globally. Firmsfrom 17 countries outside of
Poland are listed on theexchange.
However, Mr Sobolewskihas also overseen less suc-cessful projects: NewCon-nect – a stock market forsmaller, innovative compa-nies, and Catalyst – a bondmarket. Both projects havenot lived up to expectations.
Adam Maciejewski, MrSobolewski’s successor, hasworked at the WSE since1994. Since 2006 he hadheld the positions of vicepresident and member ofthe WSE’s managementboard.
Adam Maciejewski (pictured) takes over as president of
the Warsaw Stock Exchange from Ludwik Sobolewski
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By midnight on Sunday Jan-uary 13, nearly z∏.40 millionhad been raised by this year’sGreat Orchestra of ChristmasCharity (WOÂP), an annualcharity drive. The charity pur-chases state-of-the-art hospitalequipment for pediatric wards,and this year, for the first time,for geriatric wards as well.
“There are many regions inPoland that don’t have geriatrichospital care, and even if theyhave it, they’re usually poorlyequipped. We can change this,”said Jerzy Owsiak, the headand founder of the charity.
The results are similar tolast year’s, though the exactamount raised during the drivewon’t be known until March.Usually, the final amount is 30-40 percent higher than what isrecorded immediately after theday-long fundraiser, as moneyfrom auctions and events flowin over the following couple ofweeks.
Poland’s largest annualcharity fundraiser got underway on January 13, with120,000 volunteers collectingmoney for equipment and ther-
apies for sick children and theelderly. The event, whichincludes a day-long mediamarathon, celebrity auctions,concerts and volunteers collect-ing money out on the streets,took place for the 21st consecu-tive year.
Auctions galoreAs always, there were thou-sands of auctions, in whichpotential benefactors could bidon many unusual items. One“lucky” winner could spend aday in a correctional facility,another was invited to the pres-idential residency in Wis∏a for aweekend stay.
There were also hundredsof memorabilia, signed anddonated by athletes, politicians,and entertainers from Polandand abroad. Items includedMike Tyson boxing gloves, aswell as jerseys and soccer ballsfrom the numerous nationalteams that played in the Euro2012 competition in Poland lastsummer.
One of the traditions of thecharity is the auction of gold-plated, numbered, heart-
shaped medallions. The onewith number 1 is usually boughtafter a heated auction, withmany companies, organizationsand businesspeople participat-ing. This year the highest bid-der was EuCO KRIS MAKS,
which paid z∏.150,000 for themedallion.
According to its organizers,the drive is one of the mosteffective operations of its kindin the world. Last year, WOÂPraised z∏.50.6 million, a record-
best result. That money wasspent on state-of-the-art life-saving equipment for prema-ture babies and insulin pumpsfor pregnant women with dia-betes.
JJaacceekk CCiieessnnoowwsskkii
Thousands of auctions, several hundredthousand volunteers and millions incontributions. The Great Orchestra ofChristmas Charity does it again
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Founder Jerzy Owsiak led the charity drive for the 21st consecutive year
Karpielówka Restaurant
Our name comes from an area in Za-kopane, and in our restaurant you can feel the air and the atmosphere of the Tatra Mountains.
With our original high-lander décor and the cli-mate of an outlaw’s cot-tage, it’s the perfect place to dine on traditional dishes including our spe-cials: dumplings, knuckle baked with onion, dishes with oscypek cheese and much more.
We can organize wedding dinners, conferences and banquets, as well as picnics with BBQ and bonfi re. Check our lunch menu,our delivery service and catering options.
ul. Indiry Gandhi 11, tel. 22 644 85 10 | Imielin Metro Station, close to Multikino;City Hall Ursynów; 5 minute walk towards St. Thomas the Apostle Church
Open 12:00-last guest. | Reservations: +48 22-644-85-10 or [email protected]
www.karpielowka.com.pl | Check our Facebook page
The Warsaw bourseheld 105 IPOs –though their totalvalue was far smallerthan that of otherEuropean exchanges
The Warsaw Stock Exchangetook the top spot in Europe inthe number of IPOs it held in2012, hosting 105 of them,according to PwC’s IPO WatchEurope report.
Second on the list was theLondon Stock Exchange, with73 IPOs. However, in terms ofvalue of the public offerings,Warsaw was 5th on the conti-nent.
Even with 40 percent ofEurope’s IPOs, the value War-saw Stock Exchange debutscame to only €731 million.Compared to London’s €5.1billion, that’s small potatoes.All these figures are alsosmaller than those from 2011.That year, the WSE held 203IPOs worth €2.2 billion intotal. At the same time, Lon-don was home to 101 IPOs val-ued at €14.1 billion.
Even with these lower fig-ures, the fourth quarter of2012 was much better than thelast three months of 2011 forthe whole Europe. In Q4 of2012, the value of all IPOs inEurope totaled €7.5 billion,compared to only €0.9 billion
the year before. That number,the highest since Q3 of 2011(€9.4 billion), shows promisefor the upcoming year, ana-lysts said.
“Even with unfavorablepolitical and economic condi-tions in Europe, the prospectsfor IPOs look better, especiallyconsidering the increase inactivity in the last quarter of2012. The European marketslook more optimistic,” saidTomasz Konieczny, a partnerin the assurance and advisoryservices department of PwC.PwC also predicts that manycompanies will restart their
plans to go public, if economicactivity rises.
It’s hard to say if 2013 willbe as successful for the WSEas 2012 was. So far it’s hard tofind a company like AliorBank, whose IPO in Decem-ber was worth €511 million,which was the 5th-biggest IPOin the whole of Europe in Q4.
The number of new com-panies on NewConnect (War-saw’s secondary market) isalso way down. In 2011 therewere 172 IPOs, and last yearonly 89 (16 in Q4), and thetrend will probably continue.
JJaacceekk CCiieessnnoowwsskkii
Stock exchange
WSE leads Europe innumber of IPOs in 2012
JANUARY 21-27, 2013 BBUUSSIINNEESSSS www.wbj.pl 5
New legislation couldallow investors andcredit issuers to suerating agencies
Last year, when nine eurozone countries were down-graded by ratings agency Stan-dard & Poor’s, the currencyunion took a big confidencehit. This prompted EU offi-cials to put stricter regulationson credit rating agencies.
The EU began working onnew regulations that werepassed on January 16.
“Before the crisis, ratingsagencies had given manyunstable banks a triple-A rat-
ing and rated certain ‘junk’financial instruments as safeproducts. When these institu-tions collapsed, the agenciesrefused to accept any responsi-bility, arguing they were onlygiving an opinion,” saidArlene McCarthy, a vice-chairof the European Parliament’seconomic and monetaryaffairs committee.
The new law allowsinvestors and share issuers toclaim damages from a ratingsagency if they suffer losses dueto a rating that can be provenas ill-founded and whichharmed their interests.
One of the main goals of the
legislation is to reduce investors’reliance on ratings agencies.Credit institutions and invest-ment firms will have to putinternal procedures in place forassessing their own credit risk,instead of relying solely on rat-ings agencies’ analyses.
Under the EU plan, eachratings agency would beallowed to publish unsolicitedassessments of governments’creditworthiness. The agencieswould need to explain the keyfactors underlying their ratingsand refrain from making anydirect or explicit recommenda-tions on countries’ policies.
JJaacceekk CCiieessnnoowwsskkii
EU law
European Parliament curbsrating agencies’ powers
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€731 million
The new wave ofcheap tablets ispushing netbooks outof the market
Tablets priced below z∏.600are cornering Poland’s elec-tronics market. Their 2013sales could reach 300,000units, according to dailyRzeczpospolita. Just last year,experts expressed concern asto whether Poles wouldaccept these latest computinginnovations, but fast forwardto today and tablets havearrived in many of the coun-try’s households.
Market-watchers are cred-iting Chinese producers, whodeliver cheap brands to retail-ers such as Biedronka andCarrefour. Analysis firm IDCestimates that, in total, morethan 700,000 units were soldin Poland in 2012, over 400percent the 2011 figure of170,000.
The most popular tablets
available in Poland in Q12012 were the more expen-sively priced iPad and Sam-sung Galaxy Tab devices. Thecheaper brands, costing lessthan z∏.1,000, had a marketshare of just 13 percent.
But with decreasing prices,the situation changed rapidly.
“In Q3 the tablets with aprice tag of less than z∏.600accounted for over 50 percentof the sales of all tablets inPoland,” said IDC analystMarcin Kujda.
The prices continue todrop. And while the low-pricetablets may not be as power-ful or as fast as their high-endcounterparts made by Appleand Samsung, the low pricetag is something most con-sumers look for when pur-chasing new electronicdevices. And now the cheap-est devices can be bought forless than z∏.300.
That lower prices are themain factor behind the surge
in tablet sales is clearly visiblein the market. GoClever, acompany that producedtablets sold in discount chainBiedronka didn’t release offi-cial sales data, but admittedto Rzeczpospolita that salesrose by 600 percent in 2012compared to the year before.
The leader in tablets salesin Poland, Manta Multime-dia, sold 100,000 units in thefirst 11 months of 2012,according to the company’sown data. This year it plans tosell over 300,000 tablets.
On the other hand, the lastnetbooks are currently beingsold in Polish electronic hard-ware stores. The segment isdying because of lack of sup-port by producers – Samsung,Dell, HP, and many othershave stopped producing newunits. Software giantMicrosoft has also stoppedsupporting Windows develop-ment for netbooks.
BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE
Remittance of unpaid ZUScontributionsOn January 15, 2013, the act of November9, 2012 on redemption of liabilitiesincurred from contributions unpaid by per-sons conducting off-rural business activity(Dz.U.2012.1551) came into force. A per-son conducting off-rural business activitycould be understood, among other things,as a shareholder of a one-person limitedliability company, a partner in a generalpartnership, in a limited partnership orpartner company, as well as a natural per-son conducting a business activity.
Upon a motion of a person liable forcompulsory pension, disability and acci-dent insurance for conducting an off-ruralbusiness activity in the period from Jan-uary 1, 1999 until February 28, 2009,unpaid contributions for these types ofinsurance may be remitted for the aboveperiod. Moreover, the overdue interest onthe above contributions, extension pay-ments, costs of reminders, additional pay-ments, and costs of enforcement as cal-culated by a Social Insurance Institution(ZUS) division head, a tax office head or anenforcement officer may also be remitted.The motion on redemption may be sub-mitted within 24 months upon the date ofthe act coming into force. It may be sub-mitted as well by an heir or by a third per-son if ZUS has decided that person isresponsible for these liabilities.
Penalties for failing to submitfinancial statements of companiesWith the beginning of a new calendar yearit has to be remembered that in accor-dance with the Commercial CompaniesCode, an ordinary shareholders’ meetingof a limited liability company or a jointstock company should be held within sixmonths upon the end of each fiscal year.The subject of such a meeting should be,
among other things, the approval of thefinancial statement for the last fiscal year.In the case of most limited liability compa-nies, the fiscal year coincides with the cal-endar year. When that is the case, such ameeting should take place no later than onJune 30, 2013 and the management boardof the company is obliged to submit thefinancial statement for 2012 to the courtand to register an entry about it.
Many members of managementboards of limited liability companies andjoint stock companies do not fulfill theseobligations. Failing to submit a financialstatement to the court is punishable by afine or restriction of freedom. In somecases a court may decide on a ban onoccupying specific posts, for example incompanies’ management boards orsupervisory boards. Moreover, if, despitethe fine imposed by the court, a manage-ment board of a limited liability companyor joint stock company does not fulfill theabove obligation, the court may appointan administrator for the company for aperiod of time not longer than a year.
Providing transport to andfrom workplace constitutesemployee revenueThe value of a benefit received by anemployed person in the form of transportto and from work provided and paid for bythe workplace constitutes revenue fromemployment for the employee, accordingto an interpretation by the Head of theTreasury Chamber in ̧ ódê no. IPTPB1/415-520/12-2/KSU. In the opinion of the Headof the Treasury Chamber, the occurrenceof tax liability on the part of a taxpayer isnot influenced by the number of timesthat this employee has traveled via trans-port organized by the workplace, butinstead by receiving from the employerthe benefit as a possibility to enjoy a givenservice. ●
Currency
NNBBPP uunnvveeiillss ppllaann ttoo eelliimmiinnaattee llooww--ddeennoommiinnaattiioonn ccooiinnssThe proposal wouldsee cash transactionsrounded up or down tothe nearest z∏.0.05, andcould save the bankmillions
For the National Bank ofPoland, producing z∏.0.01 andz∏.0.02 (one- and two-groszy)coins far exceeds their nominalvalue. The NBP is thereforeexploring ways to at leastreduce, if not completely elimi-nate, the coins from circulation.
Withdrawing the coins fromthe market altogether would beeasiest solution, but would alsobe strongly opposed by retail-ers, who prefer to use pricesending in “.99” as a marketing
tool. Customers would alsolikely oppose the measure,expecting prices for such prod-ucts to rise.
Instead, the NBP is propos-ing that the prices be roundedup or down on cash paymentsonly. “Our main goal is tomake the cash transactions eas-ier and more efficient. Our pro-posal would round the finalcash payment to z∏.0.05,” saidthe NBP’s Aleksander Proksa,who wrote the proposal.
The NBP hopes its idea willsatisfy both retailers and con-sumers, while saving z∏.40 mil-lion in coin-production costs.According to the proposal,prices would remain intact, butthe total payment would berounded up or down. For
example, instead of payingz∏.10.97, a customer would payjust z∏.10.95 in cash. Paymentsmade with credit cards, debitcards or by bank transfer wouldremain the same.
“There are currently 7 bil-lion one- and two-groszy coinson the market, out of a total of13 billion coins. These lowdenomination coins often gounused, and they rest in peo-ple’s drawers. Nearly a third ofPoles admit this,” said BarbaraJaroszek, deputy director of theNBP’s cash & issue depart-ment.
The NBP claims that themove would not affect infla-tion. “According to our analy-sis, rounding the paymentswould have neutral effect on
CPI. The individual customerwould probably spend severaldozen groszy more per year atmost,”added Marcin Kaszuba,director of the public relationsand marketing department atthe NBP.
The retailers understandthe problem, but they havesome concerns of their own.“There is the cost of roundingthe payments, and there willbe costs involved, whetheryou’ll round the payments upor down, and these will be paidby the market. And thatincludes both customers andretailers. We don’t like beingthe only ones that would haveto pay for it,” Mr MariaAndrzej Faliƒski, president ofthe Polish Trade and Distribu-tion Organization (POHiD)told WBJ.
“There will be manyinstances in which the sameproduct will have a differentcost in the same place,” addedMr Faliƒski. “For example,when I buy something and paycash for it, I could pay a differ-ent amount than if I were pay-ing for it with a credit card.Also, something bought indi-vidually could have a different
price than the same thingbought in bulk,” he said. Hesuggested that this could poseproblems in accounting andtaxation, and that he wouldlike to see some regulations intax law that would preventpotential disputes with the TaxOffice.
Similar regulations havebeen implemented in othercountries, where the produc-tion of low-denominationcoins had become unprof-itable. For example, in theCzech Republic all coins with
a denomination lower than 1Czech koruna were withdrawnfrom the market, but prices instores still end in “.99”
“We can suspect that Pol-ish stores would keep the ‘.99’prices intact, for marketingreasons, or even lower themto ‘.95.’ ” Mr Kaszuba said.
The proposal was sent tothe Ministry of Finance,where it will be reviewed. Ifpassed by parliament, it wouldcome into force from January1, 2015.
JJaacceekk CCiieessnnoowwsskkii
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Soon to be a thing of the past?
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Inflation
CPI drops to 2.4%, makinganother rate cut likelyInflation is now belowthe National Bank ofPoland’s target,boosting argumentsfor central bankers tofurther cut interestrates
In December 2012, Poland’sconsumer price index inflationrate rose by 2.4 percent inannual terms and 0.1 percentm/m, the Central StatisticalOffice announced. Analystssurveyed by PAP had expectedthe y/y figure to be 2.5 percent.In annual terms, food pricesrose by 4.0 percent, while elec-tricity, gas and other fuels rose
by 5.1 percent. Meanwhile,transportation prices rose 1.1percent. The only prices todrop were those of clothingand footwear (-4.7 percent)and products related to health(-0.2 percent). The figure isnow below the NBP’s target of2.5 percent.
Analysts agreed that thedata was likely to provide anargument for the MonetaryPolicy Council to cut interestrates again, for the fourthmonth in a row, at its Februarymeeting. Poland’s referenceinterest rate now stands at 4.0percent.
On Wednesday, the central
bank issued its core inflationfigures. Excluding food andenergy, prices rose by 1.4 per-cent y/y in December 2012.This was the lowest point sinceNovember 2010, the NationalBank of Poland reported. Theother three core inflationindices declined as well.
Analysts at bank BZ WBKwrote in a statement that“inflationary pressure is nothreat for the economy. ...[The] data support our fore-cast that the Council will makeno pause at the upcomingmeeting and will cut rates by25 basis points.”
RRGG,, AAKK
Poland attracted €1.2 billion inforeign investment in 2012Last year foreign companiesinvested around €1.2 billion in53 projects that are expected tocreate some 10,000 jobs, thePolish Information and ForeignInvestment Agency (PAIiIZ)announced last Wednesday.
What’s more, agency offi-cials think that it’s possiblePoland could attract a similaramount this year, despiteexpectations for slower eco-nomic growth.
“It is still possible that theinflow of foreign investments
in 2013 will be comparable to2012,” said Iwona Chojnows-ka-Haponik, head of PAIiIZ’sinvestor services department.
The agency reported thatthe largest amounts of invest-ment capital came from Japan,the United States and coun-tries from the EuropeanUnion, specifically France,Germany and the UK.
Most of the projects werelocated in the Lower Silesiaand Ma∏opolskie voivodships.Lower Silesia received 18 proj-
ects, worth a total of €497 mil-lion. When complete, theseinvestments are expected toprovide some 4,000 jobs.
The Ma∏opolskie voivod-ship received six projectsworth a total of €7.9 million,which are expected to providesome 1,500 jobs.
The most popular sectorsfor investment included inno-vative services, automotive,research and development,and aerospace.
MMaarrttaa MMaarrddoosszz
Trade sees strong rise in 2012Polish companies exportedgoods worth nearly z∏.540 bil-lion and brought in importsworth z∏.588 billion betweenJanuary and November 2012,the Central Statistical Officereported. According to thereport, exports and importsincreased by 8.1 percent and3.2 percent year-on-year,respectively.
The result was a decreasein Poland’s trade deficit toz∏.34 billion, from z∏.58 bil-
lion in the same period of2011.
“Polish foreign trade willcontinue to increase in 2013,however at the beginning ofthe year Polish imports willfall because of less demand,”Piotr Bujak, chief economistfor Poland at Nordea Bank,told WBJ. However, “Polishexports will grow,” he added.
Grzegorz Maliszewski,chief economist at Millenni-um Bank, agreed that Polish
imports will decrease in thefirst half of 2013. “Importsdecreased at the end of 2012and the trend will continue inthe first months of 2013,” hetold WBJ.
Poland’s largest trade part-ner, Germany, accounted for25.3 percent of Polish imports,and 21.3 percent of Polishexports, drops of 0.9 percent-age points and 1.1 percentagepoints respectively.
MMaarrttaa MMaarrddoosszz
2
3
4
5
Dec. ‘12
Nov. ‘12
Oct. ‘12
Sep. ‘1
2
Aug. ‘1
2Jul.
‘12Jun
. ‘12
May ‘12
Apr. ‘1
2Mar.
‘12Feb
. ‘12
Jan. ‘1
2Dec.
‘11Nov.
‘11Oct.
‘11Sep
. ‘11
Aug. ‘1
1Jul.
‘11Jun
. ‘11
May ‘11
Apr. ‘1
1Mar.
‘11Feb
. ‘11
Jan. ‘1
1
Dec. ‘10
Precipitous dropPoland’s consumer price index of inflation (%), December 2010-December 2012
Source: Central Statistical Office
JANUARY 21-27, 20138 www.wbj.pl IINNTTEERRVVIIEEWW
Ewa Boniecka:How do you seethe activity of the right-wingradical groups in Poland andthe roots of their nationalisticideology? Jacek Raciborski: Such na-tionalistic views have alwaysbeen present in Poland, whileoften being buried underneaththe political scene. The onlydifficulty has been to mobilizethose who hold them at a cer-tain moment, and there is nowa convenient climate for artic-ulating such views.
These radical right-winggroups relate to some histori-cal ideas of the nation fromPoland’s interwar period. Theycall for the abolition of the“Round Table Republic” as
they describe Poland [a refer-ence to the Round Table nego-tiations between the commu-nist government and the oppo-sition movement in the late1980s]. They attack democrat-ic institutions, accuse theprime minister and the presi-dent of treason and of being“servants” to Russia and Ger-many. They oppose the Euro-pean Union. Though they holdanti-Semitic views,they do notexpress them clearly in public,instead using a sort of double-language: one official, withcertain camouflage, andanother more direct, usedinside the group.
Yet the pressure of domi-nant society is so strong that
Society
The reasonsbehind radicalism
CO
UR
TE
SY O
F J
AC
EK
RA
CIB
OR
SK
I
Professor Raciborski thinks radical right-wing groups won’t have any significant
influence on Polish politics
Jacek Raciborski, professor of sociology andpolitics at Warsaw University, sits down withWBJ to talk about the activity of radicalnationalistic groups in Poland, divisions in thecountry and Poles’ attitude towards the state
28% support
for gov’tAccording to a survey by
polling firm CBOS, 28% of
Poles support the current
government, while 35%
said they opposed it and
34% were neutral.
Compared with
December data,
proportions of both
supporters and
opponents was lower, by
five and four percentage
points, respectively. The
government is more
popular with those who
have a university
education (46%), those
whose per capita income
is z∏.1,500 or more (52%)
and the inhabitants of the
largest cities (42%).
Voivodships
set to spend
The authorities of all 16
Polish voivodships plan to
increase investment
outlays in 2013. In total,
they expect to spend
z∏.9.3 billion on projects
such as new roads and
infrastructure, which is
14% more than in 2012.
The Silesia voivodship
expects to spend the
most, with investment
plans of z∏.1.25 billion,
86% more than in last
year’s budget. ●
JANUARY 21-27, 2013 IINNTTEERRVVIIEEWW www.wbj.pl 9
their anti-Semitic and anti-democratic slogans are con-demned. So I do not think thatthe activity of those radical,nationalistic groups couldhave any significant influenceon Polish politics.
But what social and politicalfactors contribute to creatinga favorable climate for thesegroups and their ability tomobilize people?I see two processes occurringin Poland now. One is the“Europeanization” and mod-ernization of Poland, thespreading of cosmopolitanismand traditionalists’ negativereaction to this.
The second process is therelative stability of the cadre ofPoland’s political elite. Thislends a certain effectiveness toslogans about the “treason ofelites” who during the RoundTable negotiations agreed toshare the power in the countrybetween communists and thechosen leaders of Solidarity.That agreement, opening theroad to the peaceful transfor-mation of Poland, is nowrejected by right-wing radicals.
Many people are becomingincreasingly alienated from
the whole political class, whichhas led to hostility towards ourdemocratic system and sup-port for anti-democratic views.Some anti-Semitic views arealso present among certaingroups of society, and while Ido not think that Polish societyis particularly prone to suchviews, they should neither beexaggerated nor ignored.
Such radical groups haveappeared not only in Polandand in the region, but also inthe West. Do they have com-mon characteristics?There are some common char-acteristics – anger and frustra-tion, feelings of being aban-doned by politicians in a timeof financial and economic cri-sis. Yet generally such move-ments in the West are notaimed against democratic sys-tems. In the mature democra-cies of Western Europe thereare various civil organizations,such as trade unions, and theygenerally support democraticvalues while protesting againstspecific issues.
The demonstrations organ-ized in Poland and in somecountries in Central andEastern Europe don’t havesuch well-developed socialcapital. They also exploit somehistorical insecurities andpatriotic emotions.
There is concern aboutPoland’s younger generation,which has a high rate ofunemployment. Some analysts
describe them as “GenerationN” (from the Polish wordnienawiÊç – hate). As a profes-sor, you have contact withmany young people. How yousee their attitude towards life?I think that describing theyoung Poles as “GenerationN” is journalistic sensational-ism. Our young people arevery different, I do not seethem as hateful. The youngpeople whom I observe areconformist, pragmatic, andtrained for competition in themarketplace. The problem isthat they were trained to par-ticipate in a competition intimes of prosperity and nowthose rules are more difficult.They know that it is toughernow to make a career, to find aproper job, but still the major-ity of my graduates believethat they will make it and theyare counting on their own indi-vidual success.
They are also adapted to afree-market economic systembetter than the older genera-tion; they know foreign lan-guages and use EU opportuni-ties to study, move and workabroad. Yes, they are usuallyindifferent towards politics,but I do not see them as being
obsessed by hate against thesystem. I am even quite aston-ished by the strength of liberalideas among young people,who take freedom in personaland social life for granted.
You are talking about young,educated Poles. But there aremany less-educated, unem-ployed young people who havebeen pushed from the main-stream of society. Are theymore inclined to rally againstthe system?Even those less educated andunable to find a job have theability to adapt to the currentdifficult economic realitiesmuch better than their fathers.They are not so used to previ-ous high standards of living astheir unemployed peers fromrich Western countries, so theyare less rebellious. And beingan electronic generation,young Poles are mobile andknowledgeable about the out-side world.
What are the roots of theweakness of our political andsocial mechanisms?This is the consequence of ourhistory. In the 19th century,which was the most importantperiod for shaping nations,state institutions and buildingmature societies, Poland didnot exist as an independentstate. After state and socialinstitutions were not createdat that time, it was very diffi-cult to catch up. This distin-guished us from the countries
and societies of WesternEurope. The findings of theEuropean Social Survey showthat Poland holds last place inthe number of social organiza-tions, the level of citizen par-ticipation in social activity andthe level of confidencetowards state institutions andother members of society.
So how can we change thisstate of affairs?We have to continue theprocess of transformation,because even small improve-ments in the functioning ofour institutions can bring visi-ble positive results. I see suchareas of improvement wherethere are modern mechanismsand standards applied. Somepositive impulses are comingfrom the European Union,some we impose on our own.This is happening mostly onthe local level, which is causefor some optimism. I wouldsay that certain positivechanges in various areas of lifeare happening much quickerthan politicians had plannedfor.
Still, the attitude of Polestowards state institutions isnot only critical, but oftenhostile. Why?We are still learning to per-ceive the state as our partner,not an enemy. In WesternEurope, when reference ismade to the state, it is not onlyabout government. The stateis seen as the community ofcitizens who are paying taxesand consider themselvesstakeholders in the stateregardless of which party is inpower. In Poland it is different– we are inclined to identifythe state with the current gov-ernment and when people donot like it, they become hostiletowards the entire state. Andthe most important thing isthat Poles’ attitude towardsthe state does not come frombeing a being citizen butinstead from simply being aPole, a member of the nation,with a strong ethnic identifica-tion. In contrast, most modernstates include citizens of vari-ous ethnic backgrounds whoidentify with the state and itsinstitutions.
We still have a long way togo, to see the state as a com-munity of citizens and to buildrespect towards the state andits institutions. Nonetheless Ishare the opinion of thoseanalysts from Poland andabroad who point out thatPoland achieved the funda-mental success of building ademocratic, independent andsecure state.
What we have done in thelast 20 years is something thatwas not possible to achieve inthe previous 300-400 years ofour history. I think that it isvery important to make allpolitical parties and citizensunderstand and respect thatfundamental fact,while we aremaking further efforts todevelop our country. ●
“Many people are becoming increasinglyalienated from the whole political class,which has led to hostility towards our
democratic system.”
JANUARY 21-27, 2013 OOPPIINNIIOONN && AANNAALLYYSSIISS www.wbj.pl 11
Ashoka Mody
W hile all eyes have been on theEuropean periphery, has thecore been cracking? The Bun-
desbank has lowered its forecast forGerman annual GDP growth in 2013to 0.4 percent. The Central Bank ofthe Netherlands expects Dutch GDPto shrink by 0.5 percent this year – andto contract further in 2014.
The euro zone crisis may be enter-ing its third stage. In the first stage,beginning in the spring of 2008, thelocus of the North Atlantic crisismoved from the United States to theeuro zone. Banks in the euro zonecame under pressure, and interbanktensions increased.
In the second stage, starting in thespring of 2009, the crisis spread to thesovereigns, as investors grew increas-
ingly worried that propping up bankswould strain government finances. Inturn, sovereign weakness made thebanks appear riskier, and the banksand their home governments becamejoined at the hip.
Throughout the crisis, it has beenwidely assumed – at least so far – thatthe euro zone core would remain solid,and would continue to write the checksfor the periphery’s distressed govern-ments and banks. That assumptionappeared plausible. A “two-speed”Europe was the new normal.
A subtle changeIn particular, Germany stood abovethe fray. Following a strong perform-ance in 2010, Germany’s GDP exceed-ed pre-crisis levels by early 2011, asomewhat better achievement thanthat of the US. Indeed, given Ger-many’s surprisingly impressive employ-ment performance, another Wirt-schaftswunder appeared to be in themaking.
Then a subtle change occurred.The US – despite a historically slowreturn to normalcy – pulled ahead ofGermany. Absent a prolonged fiscal-cliff and debt-ceiling mess, the US maybe cobbling together a sustainable
recovery. Following the German econ-omy’s sharp contraction in the lastquarter of 2012, the question for thecountry today is whether it can avoid atechnical recession (defined as twoconsecutive quarters of economic con-traction).
Europe does not have its owngrowth engine. The German reboundwas initially robust because world traderose rapidly after a precipitous fall.China’s voracious appetite for Germancars and machines provided the need-ed boost, even as Germany’s tradition-al trade partners in Europe struggled.
Dragging each other downSince then, however, Chinese demandgrowth has slowed, and Germany’sEuropean trading partners are in evendeeper trouble. Fiscal austerity in theperiphery requires cutting back onimports; hence, the countries export-ing to the periphery need to curtailtheir own imports – and so the processcascades. This trade multiplier is caus-ing European economies to drag eachother down, and the rest of the world isfeeling the effects.
The Dutch economy’s poorprospects are similarly alarming. TheNetherlands is second only to Ger-
many in the volume of credit that itchannels through the so-called “Target2” system to the euro zone periphery,and it is the periphery’s largest creditorin per capita terms.
Economic forecasters continue topromise that growth will revive. Thingswill begin to look up in the second halfof 2013, we are told. But the trackrecord of charting this recovery hasbeen discouraging. In his book “TheSignal and the Noise,” the Americanstatistician Nate Silver says that fore-casters perform worst when faced witha circumstance that they have notencountered before. This is such a cir-cumstance.
More hope and cheer?In April 2010, the InternationalMonetary Fund’s “World EconomicOutlook” projected 1.8 percentannual GDP growth in Germanyand the Netherlands in 2013. InOctober of last year, the IMF low-ered its 2013 growth forecast forGermany to 0.9 percent and to 0.4percent for the Netherlands. And, amere two months later, both coun-tries’ central banks report that eventhese reduced expectations are toooptimistic. Who is to say that the
second half of 2013 will bring morehope and cheer?
The European crisis-managementprocess has been predicated on theScarlett O’Hara principle that “tomor-row will be a better day.” Althougheveryone knows that postponing harddecisions only makes the problem larg-er, they could still believe that therewould always be a firm line of defense.That may be changing.
The third stage of the euro zone cri-sis will arrive when the economicstrength of the core is in doubt. Thosevery doubts undermine the credibilityof the safety net that has been support-ing the European periphery.
A solution to the euro zone crisisthat relies on Germany has alwaysbeen politically uncertain. It may soonbecome economically untenable. ●
Ashoka Mody, a former missionchief for Germany and Ireland at theInternational Monetary Fund, is cur-
rently visiting professor of internationaleconomic policy at the Woodrow Wil-
son School of Public and InternationalAffairs, Princeton University.
B ritish Prime Minister DavidCameron’s long-awaited spe-ech on Europe, which was
postponed last week, may well mark aturning point with respect to Britain’sposition within the European Union.Any attempt by the United Kingdomto repatriate powers to Westminsteris likely to be a drawn-out and cum-bersome negotiation. As previousexperience has shown, internal dis-cussions on constitutional compe-tences – essentially political navel-gazing – can distract attention fromthe far more pressing issues of eco-nomic growth and jobs.
Attempting to revisit major partsof EU law and picking and choosingthe bits of which the UK approvescould set a dangerous precedent.Indeed, it could lead to piecemeallegislation, disintegration, and poten-tially the breakup of the Union. How-ever attractive repatriation may seemon the surface, it would involve longand complex procedures – with noguarantee of a favorable outcome.
Ultimately, of course, whether torepatriate competences or exit fromthe EU are decisions for the British
government and the British people tomake. But it is my strong belief thatfull UK membership is in the interestof the British and Europe alike. Thesingle market benefits the Britisheconomy enormously, and the EUremains by far the UK’s biggest tradepartner, accounting for almost 50percent of British exports.
‘Disaster’ awaitsIn a globalized world, it is not in theUK’s interest to downgrade to somekind of second-class EU member-ship, as this would merely weaken itsown influence in Europe and beyond.Certainly, Britain’s friends recognizethis. In recent days, the United Stateshas rightly warned that a possible ref-erendum in the UK could mean thatthe country turns inward, while IrishPrime Minister Enda Kenny has saidthat a British exit from the EU wouldbe a “disaster.”
Leading British business figures,too, have cautioned Mr Cameronthat he risks destabilizing the UKeconomy inadvertently if he seeks awholesale renegotiation of EU mem-bership. Their voices, however late in
the day they have come, should beheeded.
The euro zone is integrating moredeeply and rapidly not on a whim, butout of sheer necessity. The UK haschosen to remain outside the mone-tary union with a clear opt-out fromthe common currency. So, while theCameron government’s support fordeeper euro zone integration is wel-come, the euro zone cannot and willnot be shaped from outside andaccording to British interests.
A major roleThe UK is not in a position to blockthe other EU member states fromdeeper integration, given most othermember states’ political will to moveforward. Indeed, last year’s negotia-tions on the “fiscal compact” shouldalready have demonstrated to MrCameron the difficulty of exercisingthe so-called national veto.
Still, the UK has played a leadingrole in designing key EU policies,including measures concerning the sin-gle market, overseas development aid,trade, and climate change. UK leader-ship in these areas has been highly
appreciated – and would be sorelymissed should the British decide toleave. In the field of Justice and HomeAffairs, for example, the UK has so farplayed a major role in shaping EUpolicies that all member states mustadopt in less than two years.
But the Cameron governmentappears to be preparing to opt out ofthese policies completely. Surely itcannot be expected that the EU insti-tutions and the other 26 memberstates will stand idly by while the UKopts out of more than 130 of thosemeasures – in essence re-erectingnational borders in the fight againstcross-border crime – and then seeksto rejoin a select few that it considersto be in its “national interest.”
Attempting to repatriate compe-tences from the EU may play well inBritain’s notoriously euroskepticmedia and parts of the ConservativeParty, but I would question whether itis truly in the UK’s long-term interest.
More than a set of rulesThe EU is much more than a set ofrules governing the internal marketand the free movement of goods, serv-
ices, capital, and people. It is a uniqueand historic project that has unifiedthe European continent. Nation-stateshave pooled sovereignty voluntarily,because they believe that together,they are stronger. I believe in the UK’srole in helping to lead this project – inEurope’s interest and its own.
I suspect that Mr Cameron is play-ing a dangerous game for purely tac-tical, domestic reasons. I believe himwhen he says that he wants the UK toremain a member of the EU. But heincreasingly resembles the sorcerer’sapprentice, who cannot tame theforces that he has conjured – forcesthat want to leave the EU for ideo-logical reasons, to the detriment ofthe British people.
January 1, 2013, marked 40 yearsof British membership of the EU. TheUnion is likely to become even moresignificant in the next 40 years, whichis why the UK should remain fullycommitted to shaping its future. ●
Martin Schulz is president of theEuropean Parliament.
PUBLISHER VALKEA MEDIA SA EDITOR-IN-CHIEF ANDREW KURETH ([email protected]) MANAGING DIRECTOR MONIKA STAWICKA
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 [email protected]. Please include a name and contact information and clearly indicate if they are to be considered for publication.
Prenumerata realizowana przez RUCH S.A: Zamówienia na prenumerat´ w wersji papierowej i na e-wydania mo˝na sk∏adaç bezpoÊrednio na stronie www.prenumerata.ruch.com.plEwentualne pytania prosimy kierowaç na adres e-mail: [email protected] lub kontaktujàc si´ z Telefonicznym Biurem Obs∏ugi Klienta pod numerem: 801 800 803 lub 22 717 59 59 – czynne w godzinach 700 – 1800. Koszt po∏àczenia wg taryfy operatora.
Poland produces somepretty innovativestartup companies.But most are stilllearning the basics ofsuccessfulentrepreneurship
Three big Polish companiesare already interested in herproduct, but Anna Czoskaisn’t hiding her plans to con-quer foreign markets. Hermobile application, which haswon the praise of severaljuries, is defying the economicdownturn by riding its wave.Virtual Recruiter has found itsniche market in a large num-ber of job seekers. There is afree basic version for futuresales managers, marketers andother sought-after positions,but employees are interestedin the app too. “I’m a genera-tion Y girl and would like touse it myself,” said Ms Czoska,the startup’s founder.
A recent survey ordered bythe Polish Agency for Enter-prise Development (PARP)shows that more than 40 per-cent of twenty-somethingPoles of Anna’s generation Yintend to set up a companywithin the next three years. Isthis genuine entrepreneurialzest or a way to survive an eco-nomic downturn that has ren-dered 13.3 percent of Polesunemployed, many of themyoung?
A million-dollar ideaMCI, a private equity groupoperating in CEE, runs twostartup funds, MCI.BioVen-tures and Helix Ventures Part-ners, both co-financed by pub-lic partners, the National Cap-ital Fund and PARP. BioVen-
tures invests sums rangingfrom €1 to €5 million in healthcare, medtech and life scienceprojects, while HVP invests upto €1.5 million in early stageprojects in cloud computing,internet, software, mobile andwireless technologies.
“Polish entrepreneurs donot lack innovative ideas,especially in IT,” said PiotrPajewski, who manages HVP.Where they are at a disadvan-tage is financing. “Our supportmakes it possible to take upprojects that otherwise wouldhave been dropped,” he said.
Lewiatan Business Angels(LBA), the largest businessangels network in Poland andone of many such cooperationplatforms for investors andoriginators that have mush-roomed in Poland in recentyears, confirms that most oftheir investment goes to proj-ects in IT and mobile tech-nologies.
“Investors are interested inthis dynamic sector, which isexpected to yield highreturns,” said Szymon Kurzy-ca, a financial expert atLewiatan Business Angels.But it’s also a matter of supply.LBA receives hundreds ofmobile and internet-basedprojects per year, but very fewbased on scientific research inchemistry, physics and engi-neering. “There are manyinteresting projects developedin Polish university labs, butmost of them never see thelight of day,” he said.
I don’t want to be astartup founderSome other Polish startup-based tech services include aprice-search engine, a datingportal, a mobile application
for grocery shopping andsmart management of yourbusy schedule. All of these are
cool and useful, and providemuch-needed proof of theentrepreneurial spirit ofPoland’s generation Y. Buthow innovative and profitableare they really? Is it what bigfish are looking for?
According to the EuropeanRegional Innovation Score-board 2012, Poland is not as
innovative as most would likeit to be. It’s in the weakest cat-egory of “modest innovators.”Robert Bogdanowicz, a youngscientist at Gdansk TechnicalUniversity and previous Stan-ford University intern, is doing
research in material sciencewith a focus on diamonds.He’s interested in innovationsand would like to commercial-ize his findings, but has nointention of giving up his sci-entific career to pursue a start-up dream.
“The ministerial system ofappraising scientific researchmakes it practically impossibleto do both,” he said. “I treas-ure my research too much togive it up completely.”
Commercialization is still anew concept at Polish universi-ties. Procedures are beingestablished but the academicworld still looks down on sci-
JANUARY 21-27, 2013CCOOVVEERR SSTTOORRYY12 www.wbj.pl
Entrepreneurship
Poland’s startupgeneration Joanna Irzabek
Small sums, big impactThe Eastern Business AngelsNetwork is a supra-regionalcooperation platform forinvestors and originators, oneof many such platforms thathave mushroomed in Polandin recent years co-financedwith the European and statemoney. The total sum investedso far by the network’s busi-ness angels totals z∏.3 million.
“It might not be a hugesum, but it’s a typical size ofinvestment in early-stage proj-ects, especially in EasternPoland. We are expectinganother round of private equi-
ty and venture capital involve-ment soon,” said CezaryPasternak, project coordina-tor at the network, whichspans southeastern Poland.The five projects in their port-folio so far are mainly in IT.Only some are in biotech andfiberoptics. “It follows thecountry-wide trend,” he said.
Typical investment:MCI: €1-5 millionEastern Business Angels Network: z∏.1 millionInnovation Nest: $ 25,000LBA: up to z∏.1 million
SH
UT
TE
RS
TO
CK
Mobile application startups are popular funding targets for early-stage investors
“There is enough money available throughvarious programs that finance startup
development. What is needed are innovativeideas with high commercial potential.”
Gov’t doled out
z∏.3.4 billion
in 2011
In 2011, the Polish
government supported
130,000 companies with
over z∏.3.4 billion in “de
minimis” aid, according
to the Office of
Competition and
Consumer Protection
(UOKiK). “De minimis”
refers to government aid
which does not require
notification to the
European Commission.
UOKiK said that this
figure was about 25%
lower than in the
previous year, adding
that the drop was due to
smaller number of EU
funds granted to Poland.
Z∏oty weakens
on World Bank
forecastThe z∏oty dropped to six-
week lows along with
other emerging-market
assets following a cut in
the World Bank’s global
growth forecast, and
general expectations
that the Polish central
bank will cut rates in
February. Last
Wednesday the z∏oty
reached z∏.4.128 against
the euro – its weakest
point since December 6.
Three banks
fined
z∏.6.5 millionPolish regulators fined
PKO Bank Polski, Bank
Pekao and Raiffeisen
Bank Polska on grounds
of not respecting
consumer rights. PKO
BP was fined z∏.2.84
million, Pekao was
slapped with a z∏.1.83
million fine, while
Raiffeisen Polska was
handed a z∏.1.83 million
fine. The banks can still
appeal the court’s
decision.
Unemployment
to reach 14%?
Unemployment in the
winter months could
reach 14%, according to
Deputy Labor Minister
Jacek M´cina. Mr M´cina
said that unemployment
is most certainly likely to
increase between
January and March.
Between March and April
seasonal work – in
horticulture, agriculture,
tourism, catering, and
perhaps the construction
industry – will pick up
again. Unemployment in
Poland was 13.3% in
December, according to
the Labor Ministry. ●
00Q4
2008 2009 2010 2011 2012
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2.00
Value of investments (in PLN) Numbersof investments
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
1
2
3
4
5
6
Money for the innovativePortfolio funds’ investment by value and volume
Source: Krajowy Fundusz Kapita∏owy
JANUARY 21-27, 2013 CCOOVVEERR SSTTOORRYY www.wbj.pl 13
Sectors most likely to receive funding
• software • cloud computing
• mobile and wireless health care
• biotech • medtech • life sciences
entists who flirt with business.So taking an entrepreneur’spath equals burning bridges tothe academia. “If you fail as anentrepreneur, there is no wayback,” said Mr Bogdanowicz.
In search of innovationContrary to what an outsiderto the innovation businessmight believe, a startup is not avehicle for all sorts of innova-tion. There are projects, likethose in material research forthe energy sector, that requirecostly experiments and largeteams of specialists. They can-not be done by a few computerprogrammers working in agarage.
“Along with a classic modelof a hi-tech company that canreach a significant size, there isa newer strategy that consistsof quickly selling a company inits early stage to a large corpo-ration,” explained Dr JerzyCieÊlik, director of the Centerfor Entrepreneurship at theKozminski University in War-saw. An internet portal is alsoa startup, but probably of nointerest whatsoever to a corpo-ration hunting for the next bigidea that will conquer theworld.
“There is enough moneyavailable through various pro-grams that finance startupdevelopment. What is neededare innovative ideas with highcommercial potential,” profes-sor CieÊlik said.
If the originality of a start-up’s idea is its essence, thenmost Polish startups aren’tparticularly outstanding. Theymostly copy existing solutions.But innovation is a relativeterm, at least to Rafa∏ Pagan,marketing & PR manager atInnovation Nest, a seed andstartup fund that has recentlylaunched an accelerator pro-gram for internet and otherweb-based high technologystartups with global ambitions.
“There has been a clearshift from product innovationtowards business-model inno-vation around the world. As alimited number of new busi-ness models come up everyyear, most startups are bound
to replicate them. They mightadjust them to the local envi-ronment or modify themslightly to stand out from thecrowd. If that’s our definitionof innovation, then Polishstartups are as innovative asthe rest of the world,” said MrPagan.
On steroids A big chunk of Poland’s “mod-estly innovative” startup activ-ity is generated through Euro-pean money. A quick look atPARP’s website (the agencymanages state and EU fundsassigned for entrepreneurshipand innovation support) shows23 business environment insti-tutions, 18 tech incubators and35 technological parks, allfunded from the EuropeanStructural Funds for 2007-
2013. It’s hardly an exhaustivelist of entities that make use ofthese funds.
“There has been a wave ofbeneficiaries of the Europeanfunds for startup support,”noted Mr Bogdanowicz. “Theyhave been commercializedand constitute a sector on itsown. But you have to keep inmind that it’s artificial support.It’s like juicing up an athletewith performance-enhancingdrugs.”
Such financial injectionscan have consequences for aproject’s flexibility. Much ofthe funds are granted on non-negotiable terms, such asthose from the National Cen-tre for Research and Develop-ment (NCBR), which also pro-vides venture capital. Usuallythere are strings attached togrants.
“In the case of Europeanfunds, it might be a commit-ment to a given market. Butwhat if there is a whole newmarket created, say, in Africa,
while you have committed tosell your product in the EU? ”asked Mr Bogdanowicz.
Going globalAlex Barrera, founder ofPress42.com and a startupmentor, says Polish startupshave great tech ideas but knownext to nothing about busi-ness. “Technically speaking,Polish developers are not onlygood but above average. Theycan do amazing stuff. Theproblem is that most of theteams are composed of techguys with zero knowledge onhow to build a business. This isone of the things that has beenpreventing great companiesfrom expanding beyond thePolish borders.”
Going global is the onlyway to go, most startup expertsagree. Ideally, starting fromSilicon Valley and expandingfrom there. “Polish startupsare forced to think globallyfrom their very inception,”said professor CieÊlik. “Thedomestic market’s absorptioncapacity is low.”
It’s very difficult to intro-duce new products in the Pol-ish market, especially innova-tive ones. “Consumers areconservative, their purchas-ing power is weak anddemand for innovative prod-ucts across segments low.Price is what matters,” saidMr Bogdanowicz.
The hard-to-battle externalfactors might push ambitiousPolish entrepreneurs abroad,but there are also mental atti-tudes at home that are notexactly conducive to the start-up mindset. While in the US astartup is created to quicklysell, earn and finance the nextbig idea, a small business inPoland is expected to stay inthe family. In the US a failureis part of an entrepreneur’sportfolio – in Poland it ruinsyour reputation. In the US it’seasy to open a business – inPoland bureaucracy can kill it.And many potential Polishstartup founders simply do notbelieve in themselves.
Perhaps one thing thathelps a young Polish entrepre-neur most in climbing to thetop is what can be both hisadvantage and its opposite:the ability to wheel and deal.“Where other people mightsee a wall, a Polish entrepre-neur will find a door,” said MrBogdanowicz.
Fresh bloodThere is some good news forthe ambitious Polish startupsthat are not afraid of globalchallenges. A recent report by
Ernst & Young expects a“paradigm shift” in the behav-ior of American venture capi-tal. Currently, the vast major-ity of VC firms invest in theirhome markets, the reportsays, but more will be invest-ing internationally in the nextfive years – including in theCEE as the new destinationfor fresh blood.
“Most of our startups are ata very early stage,” said Inno-vation Nest’s Rafa∏ Pagan.“But we can already distin-guish startups that think and
operate globally. There areseveral dozen of them and thelist is being expanded.”
Startups do not exist in avacuum. “Developing techno-logically advanced entrepre-neurship is a long process,”professor CieÊlik said. “Com-panies that are not necessarilyinnovative but generatedynamic employment andsales should be supported too.It’s them, not the high-techstartups, that generate most ofthe employment in today’seconomy.” ●
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“The problem is that most teams [of Polish developers] are composed of tech guys with zero knowledge on
how to build a business,” according to startup mentor Alex Barrera
Global success?How many startups canappeal to the millions of cus-tomers around the world?The average worldwide ratioof seed and startup success is1 out of 10.
Polish investment fundsare very cautious aboutinvesting in startups, expect-ing a tenfold return in fiveyears. “But as our portfolioshows,” said Andrzej
Ziemiƒski, a member of themanagement board of BBISeed Fund, “the success ratecan be as high as 40 percent.”
Success rate:Global average: 1 out of 10.BBI Seed Fund predictionsfor Poland: 40 percent (basedon current portfolio). NCF’s expected investmentreturn: tenfold
“Polish startupsare forced to thinkglobally from their
very inception.”
Last chance for entrepreneursto join the Zacznij.biz competition!
Zacznij.biz – idea – business – success, is a business competition organized by the Confed-eration Lewiatan and Lewiatan Business Angels. On December 1, 2012, the third edition of the Zacznij.biz competition was launched. The deadline for submitting projects is January 31, 2013.
Those who enter their ideas into the Zacznij.biz competition will have the possibility to take part in several free training sessions and workshops conducted by experienced experts cooperating with Lewiatan Business Angels. In addition, participants will have a chance to prepare a comprehensive business plan and acquire the knowledge and skills for effective presentation of their business ideas. Finally, the best ideas will be presented to attract interest of potential investors from Lewiatan Business Angels.
Zacznij.biz – idea – business – success, is aimed at:• micro and small enterprises with big growth potential, operating in the hi-tech sector,
seeking to raise capital for development and implementation of new technologies• academics: researchers, graduate students and students of technical universities, who want
to commercialize their innovative ideas• entrepreneurs with projects operating in the ICT sector with global growth potential
To participate in the competition, just register at www.zacznij.biz.pl and fill in the proper form available on the website. Applications are being accepted until January 31, 2013. The most sound and promising ideas will be presented at the Final Gala in May, 2013.
Members of Jury of Honour of the Zacznij.biz competition are: Bożena Lublińska-Kasprzak, President of the Polish Agency for Enterprise Development; Henryka Bochniarz, President of the Confederation Lewiatan and Professor Krzysztof Jan Kurzydłowski, Director of the National Centre for Research and Development.
Join Zacznij.biz – idea – business – success at www.zacznij.biz.pl
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LLOOKKAALLEE IIMMMMOOBBIILLIIAAW 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 l y s u p p l e m e n t o n r e a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t JANUARY 21-27, 2013, LI 18/02
Best Western
Katowice to
expand
The world's largest hotel
chain is expanding its
Chorzów hospitality
facility. Best Western
Premier Katowice,
currently comprising 170
rooms, will occupy two
adjacent buildings that
are planned on either
side of the scheme. The
four-star facility will be
the biggest hotel in the
region.
Szczecin mall
construction to
start in springConstruction on Marcredo
Center Szczecin will be
launched in April and its
completion is scheduled
for December. Located on
ul. Struga in the
northwestern Polish city
of Szczecin, the mall will
offer 11,000 sqm of retail
space and 400 parking
spaces.
New tenants at
Nowy Dom
Jab∏kowskichSud Architects, APAX
Consulting Group and the
Polish Investment Fund
have leased the second
and fifth floors of Nowy
Dom Jab∏kowskich,
located at the corner of
ul. Bracka and ul.
Chmielna in Warsaw.
Both leases were signed
for five years. Sud
Architects will occupy the
majority of the fifth floor.
APAX Consulting Group’s
and the Polish
Investment Fund’s offices
will take the half of the
second floor. ●
Ferio Wawer . . . . . . . . . . . . . . . .14
Griffin-City Hall battle . . . . . . . .14
Home Broker interview . . . . . .15
Baltic Molo Park . . . . . . . . . . . . .16
PHN IPO . . . . . . . . . . . . . . . . . . . .16
In this issue
1715
Bartosz Turek says it will beanother tough year for residential developers
The Treasury will sell 25% ofPolskie Holding NieruchomoÊciby the end of March
Retail
New mall to be built in WawerThe new Ferio Wawercommercial-servicecenter will open in thesummer of 2015
Warsaw’s southeastern districtof Wawer will get its own mallby 2015. Ferio Wawer, as thescheme is to be called, willoffer 12,500 sqm of retailspace and several hundredparking spaces. The mall willbe built at the intersection oful. Szpotaƒskiego and ul.˚agaƒska and have a totalarea of 22,000 sqm.
Developer RaiffeisenEvolution Project Develop-ment will build the newinvestment within a formermanufacturing plant that wasoriginally built in 1918. TheAPA Kury∏owicz & Associ-ates architectural studiodesigned the mall in accor-dance with the factory’s pre-war architecture.
The architects, who suc-cessfully adapted the StaraPapiernia shopping center onthe premises of an old paper
mill in Konstancin, near War-saw, have placed this newbuilding between four exist-ing edifices all entered in thecity’s historical monumentsregistry.
As the scheme is located inWawer’s administrative cen-ter, near the office of the dis-trict executive, the architectshave planned recreationalareas and cycle paths, as wellas benches and flower stands.
Ferio Wawer will be oneof the smaller shopping cen-ters in Warsaw (its retailspace is 6,000 sqm smallerthan Wola’s Klif) but willnevertheless be the biggestin the district. The mall willinclude a supermarket, vari-ous boutiques, restaurantsand service points among itsfuture tenants.
Raiffeisen Evolution Pro-ject Development is an Aus-
tria-based company thatdevelops office and commer-cial real estate in its homemarket and in EasternEurope. To date it has built,among others, Ferio shop-ping centers in Konin, Leg-nica, Pu∏awy, Szczecin andWroc∏aw.
According to Jones LangLaSalle, 25 shopping centerswill open in Poland in 2012and another nine will be
expanded. Poznaƒ City Cen-ter and Auchan Bronowicein Kraków (both comprising60,000 sqm), Galeria Katow-icka in Katowice (53,000sqm) and CH Wzgórze inGdynia (45,500 sqm) will bethe largest of the plannednew malls. Expansion isplanned for Warsaw’s Gale-ria Mokotów and Auchan in¸omianki, near the capital.
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The Ferio Wawer design is in line with the building’s historical architecture
Skyscrapers
Griffin’s conflict with Warsaw over Emilia continues
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or
The company and thecity still can’t agree onterms to lease space toWarsaw’s Museum ofModern Art
There seems to be no end tocontroversy over the purchaseof furniture retailer MebleEmilia and its property on ul.Emilii Plater in the center ofWarsaw. Though the buildinghas been removed from thecity’s historical register, techni-cally making it legal for Griffinto begin construction on a newbuilding, the company and citystill can’t agree on terms forleasing space to the city’sMuseum of Modern Art.
Since May last year theproperty has been the muse-um’s temporary home as itwaits for the construction of a
new facility. In September oflast year, just as Griffin wasbuying the building, city offi-
cials declared it a “monumentof history,” making it illegal todemolish.
The site was eventuallyremoved from the city’s registryof historical buildings, but theconflict didn’t end there.
City Hall and Griffin stillcannot come to terms on theconditions of an agreementthat guarantees the museum afour-year occupancy. While itnegotiated the purchase ofEmilia, Griffin said that leasingthe space to the museum forfour years wouldn’t be anobstacle to a deal. But after theagreement was signed, the citystated that it wanted the muse-um to be able to use the spacefor seven years, as it waited fora permanent home to be built.
In response, in OctoberGriffin terminated the agree-ment, citing city’s breach ofcontract. Warsaw’s officialsclaimed that the breach was notsignificant enough to break the
agreement and refuses to payGriffin a z∏.500,000 monthlypenalty. Griffin took the city tocourt over the matter.
In December, Griffinoffered to lease space to themuseum in the new buildingpermanently, at a preferen-tial rate. City officials haveturned down the offer.
That Griffin had plannedto tear down the Emiliabuilding and build a €130million office tower on thesite, which is wedgedbetween the high-rise Inter-Continental Hotel and theWarsaw Financial Center,was widely known when theconflict began.
Griffin still plans thedevelopment of an officetower on the site, with 41,000sqm of leasable space.
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sqm of GLA on the site
JANUARY 21-27, 2013 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 15
Residential
AA bbuuyyeerr’’ss mmaarrkkeettKarolina Kowalska: Last yearwas really hard on developers.Will this one be any easier?Bartosz Turek: Recent changesin the market definitely favorbuyers. Developers are facinganother tough year as the“Rodzina na Swoim” (“Familyon its Own”) government pro-gram [subsidizing apartmentpurchases for young families] isover and it is unclear whetherits successor, “Mieszkanie dlaM∏odych” (“Apartments for theYouth”) [subsidizing apartmentpurchases for young couplesand singles] will actually beimplemented in July.
The transaction volumeshould not be bigger than in2012, since many buyers con-cluded their deals in the lastquarter of 2012, taking advan-tage of the “Rodzina naSwoim” program before itended. Also, the potential ben-eficiaries of “Mieszkanie dlaM∏odych” will probably have towait till July. So for the next sixmonths business will be slower.On the other hand, there is athreat that “Mieszkanie dlaM∏odych” will not take off until2014, as the state budget is fac-ing cuts. So things could be slowfor the whole year.
Should we expect any spectacu-lar bankruptcies?Hopefully not, although theNational Bank of Polandrevealed that more than 1 in 5developers had trouble payingoff their loans in the third quar-ter of 2012. Nobody wantsdevelopers to collapse, but thatis not an impossible scenario. Itis most likely some of them willchoose to consolidate. The onlyforeseeable hope may come atthe end of the year, when somebuyers, especially those who donot have a lot of money, willspeed up their deals in fear of
higher down-payment require-ments on mortgages in 2014.
And this is the only majorchange this year, as mortgagesin foreign currencies have beenpractically eliminated by thePolish Financial SupervisionAuthority. Currently, only threemortgages in 100 are granted ineuros, mostly to those who earnin that currency. And as interestrates have already been cut by75 basis points, and will proba-bly be cut further, in six monthsit will be cheaper to get a mort-gage in z∏oty than in euros.
Will these developments stopthe downturn in apartmentprices?Prices have been dropping forthe past five years and they arenow 28 percent lower than in2004 or even 40 percent lower,taking into consideration infla-tion. Prices are now parallel tothe creditworthiness of buyers,so the situation on the realestate market depends on thecredit market. If the creditwor-thiness of Polish families growsand credit becomes cheaper,then the market will rebound.
Does that mean that now is thebest time to buy an apartment?Not necessarily, because pricesmay drop even more. I boughtan apartment in August 2012and that apartment costs 10-15percent less today.
And if you were to buy a flattoday, how would you go aboutit?I would already start looking forone because the banks couldincrease their commission feessoon. If I were to get a mort-gage today, I would most cer-tainly pay a lower commissionthan if I were to get one in six tonine months’ time. I would tryto avoid postponing the trans-
action till the end of the year infear of higher down-paymentrequirements. I would certainlytry to get an apartment before2015, when the restrictions ofthe S Recommendation will beintroduced and we will be pay-ing even as much as z∏.70,000 inadministrative fees while buyinga property worth z∏.300,000.But one should not buy anapartment now at any cost. Itshould be a real deal. If thedeveloper offers somethingspecial, then we can close.
According to your analysis, buy-ers on secondary markets arenow more likely to negotiatethan before. Why?The difference between theoffering and closing price onthe secondary market in-creased to 6 percent last year
from 3 percent in 2010. Itshows that developers weremore likely to lower the priceof a square meter. They cutback on the extras, such as afree parking space or a car,only to be able to put on bill-boards that they sell at z∏.6,000per sqm, which makes theirflats more desirable. Sellers insecondary markets are lessprone to react to changes inthe real estate market by low-ering asking prices, so theyneed to be more flexible duringnegotiations.
Is the secondary market stillmore popular than the primarymarket?Yes, the secondary market stillholds an over 50 percent shareof the whole transaction vol-ume. That’s mainly because
there are more apartments onthe secondary market than newones and used apartments tendto be a lot cheaper than thoserecently completed. One canbuy a used, two-bedroom apart-ment in a prefabricated con-crete building for as little asz∏.300,000, while a new unfin-ished apartment costs around20 to 50 percent more.
Who chooses to buy new apart-ments today?Mainly people who can affordto wait for their place to be builtand have money to furnish it, aswell as the young. There is alsoa tendency to migrate fromcities to the suburbs, which arequieter and cheaper. One canhave a 100-meter apartmentthere for the price of 40 sqm inthe city. ●
Lokale Immobilia sits down with Bartosz Turek,a real estate market analyst at Home Broker, todiscuss apartment market prospects for thenext 12 months
Housing prices
to fall in 2013According to a forecast
made by the Polish Real
Estate Federation (PFRN),
housing prices will
continue to fall in 2013.
The federation points to
factors such as the
banking sector's
continuously strict
mortgage policy, as well
as the poor economic
situation in Poland and in
the EU region. The
organization said that if
these do not change and
the z∏oty does not grow
stronger, the situation on
the housing market will
not improve.
Real estate
investors buy
more landThe total value of land
purchase transactions for
real estate construction in
Poland was z∏.1.5 billion in
2012, compared to z∏.1.2-
1.3 billion a year earlier,
Daniel Puchalski,
associate director at
Colliers International told
Dziennik Gazeta Prawna.
One of the major factors
influencing the rising
number of transactions
was the falling price of
land throughout Poland,
he said.
Hays’ new
Lumen lease
CBRE has advised Hays
Poland in the negotiation
process of the lease of
1,265 sqm of office space
in the Lumen building in
the Z∏ote Tarasy complex
in the center of Warsaw.
Lumen is a class-A eight-
storey scheme providing
approximately 23,500
sqm of modern office
space. “We have been
able to negotiate
favorable lease terms for
our client,” said Daniel
Bienias, director of
CBRE’s tenant repre-
sentation department. ●
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Home Broker’s Bartosz Turek says residential developers are facing another tough
year, which could be good for buyers
JANUARY 21-27, 2013LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE16 www.wbj.pl
Privatization
Treasury to sell 25% of PHN in IPOThe stake in the hugeholding firm could beworth as much asz∏.423 million
Poland’s Treasury Ministry hasannounced that it plans tobegin the privatization processof Polski Holding Nieru-chomoÊci, a huge real estateholding firm, in the first quar-ter of the year through an IPOof a 25 percent stake. After theIPO, the Treasury wants to sella majority stake to a strategicinvestor.
Brokerages have valuedPHN at between z∏.1.15 billionand z∏.1.7 billion. That wouldput the value of the 25 percentstake at z∏.287-423 million.
Grupa Radius, a Polish realestate firm, last year released astatement saying that it wasinterested in buying a stake inPHN. Mennica Polska, a pub-licly-traded mint, has alsoexpressed interest.
The IPO of PHN was a keypart of Poland’s z∏.10 billionprivatization plan for 2012, butwas postponed due to negativemarket conditions.
PHN was created in 2011by pooling together 180 differ-
ent real estate and land hold-ings owned by the state. Theintention was to increase con-solidation in the sector.
PHN manages commercial,office and residential build-
ings, including Warsaw’s well-known Intraco building andvillas in the capital’s Wilanówdistrict.
Baltic Park Molo constructionto be launched this springThe full mixed-use,z∏.250 millioninvestment is due tobe complete in 2018
Developer Zdrojowa Invest ispreparing to launch construc-tion on the first phase of itsBaltic Park Molo mixed-usedevelopment in ÂwinoujÊcieon the Baltic Sea.
The Warsaw-based P∏asko-wicki & Partnerzy Architekcistudio, which designed thehotel-apartment-service com-plex, is completing the build-ing plans and Zdrojowa Investwill soon announce a tenderfor construction, which shouldcommence in the spring.
The first building to bedeveloped will be a four-starhotel with 400 condo apart-ments for sale and for rent, apassage with a spa facility, awater park and conferencecenter, as well as a 150-meterpromenade leading to a beach.Later on, the complex will alsoget a five-star hotel withapproximately 200 rooms, twoapartment buildings and apier. Both buildings will fea-ture a wellness center, retail,recreation and art space, awater park and a cinema.There will also be parking
spaces for 500-600 vehicles. Two residential buildings,
due to offer between 600 and700 apartments, are alsoplanned. The residences willbe priced from z∏.11,000-18,000 per sqm.
“We are currently workingon getting a sustainability cer-tificate as we are trying tomake the investment as envi-ronmentally friendly as possi-ble. We hope that Baltic ParkMolo will be absolutelyunique,” said Jan Wróblewski,a board member at ZdrojowaInvest.
The whole Baltic Park Moloscheme, which is valued at from
z∏.200 to z∏.250 million, is sched-uled to be completed in 2018.
The investment will beone of the largest businesshotel centers in the area andone of the largest in Poland,so it attracted the biggestnames in architecture. Itsconcept was selected via acompetition in which over 70studios from Poland andabroad took part. Apart fromthe investor, the jury of thecompetition included a rep-resentative of ÂwinoujÊcie, aswell as representatives of theAssociation of Polish Archi-tects.
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The Intraco building in Warsaw is one of the properties
owned by Polski Holding NieruchomoÊci
Combining the most in-depth social media knowledge with the sophisticated insights of consumer behavior
*Attention USA clients
www.valkea-attention.com
don’t think so.But these companies
is just a fad. Maybe social media
*
A guide to Polish business and industry Przewodnik po polskim biznesie i gospodarce
Corporate Services
Business Consulting CompaniesRanked by total number of consultants www.bookoflists.pl
Financial advice; strategic advice for public andprivate sectors: business plans; investmentconsultancy, development management andstrategy; transaction and crisis consulting;
sustainable development consulting; economicinquiry and expertise; legal, tax and audit
Advice on human capital management; advice onemployees benefits; wages and benefits analysis;advice on mergers and acquisitions; labor market
analysis
WNDWND1999
Krzysztof NowakBoard Member
17
FIRMA 2000 Sp. z o.o.ul. Królowej Marysieƒki 90, Warsaw 02-95422 642-5872/22 [email protected]
1717-
0.91.10.80.3
0.91.10.80.3
4.512.55.41.6
Training; project management and advice; EUfunds acquisition; communication campaigndesign and implementation; monitoring and
valuation systems
Cersanit; Echo Investment; Vaillant; Softronic;Polish Agency for Entreprise Development
271999
Marcin Opas President
1st half of 2011 / 2010 / 2009 / 2008
Notes: Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was con-ducted in November 2011. Number of employees is as of October 2011. All information pertainsto the companies’ activities in Poland. Companies not responding to our survey are not listed.Footnotes: (1) Financial year July 1 - June 30;
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 typo-graphical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to [email protected]. Copyright 2012, Valkea Media SA. The List may not be reprinted or reproducedin whole or in part without prior written permission of the publisher. Reprints are available.
JANUARY 21-27, 2013 TTHHEE LLIISSTT www.wbj.pl 19
Rank
Company nameAddressTel./FaxE-mailWeb page
Number ofconsultants:
Total /Polish /Foreign
Revenue frommanagement
consulting (z∏. mln)
Total revenuefrom
consulting
Total revenue (z∏. mln)
Main activities Selected clients
Total numberof employees /Year founded
in Poland
Top local executive /Title
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Grant Thornton Fràckowiak Sp. z o.o., Sp.k. (1)ul. Abpa Antoniego Baraniaka 88E, 61-131 Poznaƒ61 [email protected]
The Boston Consulting Group Sp. z o.o.ul. Mokotowska 1, 00-640 Warsaw22 820-3600/22 [email protected]
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Services for companies in banking, insurance,energy and telecom sectors
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Franciszek Hutten-CzapskiManaging Director; Partner
1st half of 2011 / 2010 / 2009 / 2008
JANUARY 21-27, 2013MMAARRKKEETTSS20 www.wbj.pl
SO
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PLN-EUR
4.09
96
4.12
31
4.11
51
4.12
80
4.11
78
4.12
94
11.0
1
14.0
1
15.0
1
16.0
1
17.0
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18.0
14.0
4.2 PLN-USD
11.0
1
14.0
1
15.0
1
16.0
1
17.0
1
18.0
1
3.08
90
3.08
28
3.07
50
3.10
97
3.08
53
3.09
25
3.0
3.5 PLN-GBP
11.0
1
14.0
1
15.0
1
16.0
1
17.0
1
18.0
1
4.97
83
4.97
24
4.94
78
4.98
22
4.94
10
4.92
86
4.9
PLN-CHF
3.36
93
3.36
74
3.33
30
3.34
37
3.31
29
3.30
67
11.0
1
14.0
1
15.0
1
16.0
1
17.0
1
18.0
13.0
3.5 PLN-RUB
11.0
1
14.0
1
15.0
1
16.0
1
17.0
1
18.0
1
0.10
20
0.10
20
0.10
19
0.10
24
0.10
19
0.10
22
0.10
0.12 PLN-100JPY
11.0
1
14.0
1
15.0
1
16.0
1
17.0
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18.0
1
3.47
39
3.44
91
3.46
10
3.53
17
3.46
11
3.43
96
3.0
3.5
4.0
currency rates
Z∏oty slides
on weak data
Currency report
Currency markets providedmany trading possibilities forinvestors this past week.Mixed macroeconoic datacaused the EUR/USD totrade in the range of$1.3250-1.3400. It seems thatUS dollar bulls are takingover, and in the next coupleof weeks the EUR/USDcould dive much lower.
It was also interesting onthe z∏oty market. The macro-economic data that was pub-lished last week confirmedthe weakening of the econo-my. CPI inflation in Decem-ber dropped to 2.4 percenty/y and I do not believe it willincrease any time soon. Thebig negative surprise cameon Friday, with the industrialproduction report showing a10.6 percent decline inDecember.
The z∏oty reacted instant-ly – while still being traded at
z∏.4.10 against the euro andz∏.3.07 against the dollar onFriday morning, it depreciat-ed dramatically to z∏.4.15against the euro and z∏.3.12against the dollar.
The upcoming week willlikely answer the questionif this z∏oty depreciation isjust a corrective movementor a change of trend. It isworth mentioning that thestrong positive correlationbetween the EUR/PLNand EUR/HUF (Hungari-an forint) was broken andthose currency pairsdiverged from their com-mon path.
Forecasting that thisdivergence will close in thefuture (as has happenedbefore), we can expect adownward move on theEUR/HUF and an upwardmove on the EUR/PLN inthe upcoming weeks. ●
Adam NarczewskiX-Trade Brokers DM SA
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Major indices
Top 5 Closing % change (week) 52-week high 52-week low
Change for the week: -0.25% 52-week high: 2,628.36
Change year to January 17: -2.25% 52-week low: 2,035.80
mWIG40 2,618.14 (January 17 close)
Change for the week: 0.99% 52-week high: 2,625.96
Change year to January 17: 1.93% 52-week low: 2,147.52
sWIG80 10,767.29 (January 17 close)
Change for the week: 2.58% 52-week high: 10,767.29
Change year to January 17: 2.24% 52-week low: 8,893.98
NewConnect 33.61 (January 17 close)
Change for the week: 0.84% 52-week high: 43.83
Change year to January 17: 1.17% 52-week low: 32.53
WIG-Banki 6,661.60 (January 17 close)
Change for the week: 1.68% 52-week high: 6,723.16
Change year to January 17: -0.92% 52-week low: 5,163.30
DJIA13,596.02 (Jan 17 close)
0.93% (for the week)
CHANGE: 1.37%
(year to Jan 17)
52-week high: 13,661.90
52-week low: 12,035.10
NASDAQ3,136.00 (Jan 17 close)
0.46% (for the week)
CHANGE: -1.91%
(year to Jan 17)
52-week high: 3,196.93
52-week low: 2,689.58
S&P5001,480.94 (Jan 17 close)
0.60% (for the week)
CHANGE: 1.27%
(year to Jan 17)
52-week high: 1,485.16
52-week low: 1,266.74
FTSE1006,132.36 (Jan 17 close)
0.51% (for the week)
CHANGE: 1.74%
(year to Jan 17)
52-week high: 6,135.90
52-week low: 5,229.80
DAX7,735.46 (Jan 17 close)
0.35% (for the week)
CHANGE: -0.56%
(year to Jan 17)
52-week high: 7,789.94
52-week low: 5,914.43
NIKKEI10,609.64 (Jan 17 close)
-0.40% (for the week)
CHANGE: -0.73%
(year to Jan 17)
52-week high: 10,952.30
52-week low: 8,238.96
world stock indices
14.1
17.1
18.1
19.1
20.1
21.1
27.1
28.1
02.0
03.0
04.0
07.0
08.0
09.0
10.0
11.0
14.0
15.0
16.0
17.0
46,000
46,600
47,200
47,800
48,400
49,00014
.1
17.1
18.1
19.1
20.1
21.1
27.1
28.1
02.0
03.0
04.0
07.0
08.0
09.0
10.0
11.0
14.0
15.0
16.0
17.0
2,500
2,540
2,580
2,620
2,660
2,700
14.1
17.1
18.1
19.1
20.1
21.1
27.1
28.1
02.0
03.0
04.0
07.0
08.0
09.0
10.0
11.0
14.0
15.0
16.0
17.0
2,500
2,540
2,580
2,620
2,660
2,700
14.1
17.1
18.1
19.1
20.1
21.1
27.1
28.1
02.0
03.0
04.0
07.0
08.0
09.0
10.0
11.0
14.0
15.0
16.0
17.0
10,100
10,240
10,380
10,520
10,660
10,800
14.1
17.1
18.1
19.1
20.1
21.1
27.1
28.1
02.0
03.0
04.0
07.0
08.0
09.0
10.0
11.0
14.0
15.0
16.0
17.0
32.0
32.4
32.8
33.2
33.6
34.0
14.1
17.1
18.1
19.1
20.1
21.1
27.1
28.1
02.0
03.0
04.0
07.0
08.0
09.0
10.0
11.0
14.0
15.0
16.0
17.0
6,400
6,480
6,560
6,640
6,720
6,800
Other indices
WIG20
breaks 2,550
Stocks report
Last week was a busy one,with economic data beingreleased on both sides of theAtlantic. Monday started offslow, though, with industrialproduction for the euro zonebarely moving markets, whileAsia’s largest stock exchangein Tokyo was closed. In War-saw both the main-marketWIG and the blue-chipWIG20 indices closed withmarginal gains – both upnearly 0.1 percent.
On Tuesday, despite a slewof positive economic data,markets across the board,closed lower. The WIG fell0.81 percent, while theWIG20 shed slightly over 1percentage point. Hit hardwere shares of KGHM andTauron, both seeing theirstock prices close 3 percentlower.
After a poor start on Wed-nesday for most Polish blue-
chips, the WIG20 broke theimportant psychological barri-er of 2,550 points. Strongfinancial earnings released onWednesday by a few leadingUS investment bankspropped up financials stocks.Aside from Pekao, all finan-cial stocks closed with impres-sive gains – insurance giantPZU led the way, gaining a 3percent. The WIG20 finished1.29 percent higher.
The gains continued onThursday, with the WIG up0.29 percent. Helping prop upstocks were improved housingand employment statisticscoming out of the US. Moremodest gains were seen onthe WIG20 index, which rose0.08 percent.
On Friday both the WIGand WIG20 rose, by 0.32 per-cent and 0.19 percent respec-tively, despite negative macro-economic data. ●
This will be the Polishnational team’s firstofficial match
Poland’s newly formed nationalAmerican football team willtake on Sweden at the AtlasArena in ¸ódê on February 2.Following the unprecedentedsuccess of last summer’s PLFANAC SuperFinal VII, it wasdecided that Poland needed anational squad to represent theburgeoning game in the coun-try. The new team will be madeup of players from Poland’s 74
teams and Maciej Cetnerowski,head coach of the Topligachampions, the Gdynia Sea-hawks, will manage themagainst their neighbors fromacross the Baltic Sea.
The location of the event issignificant and fans, players andcoaches will be hoping for somegood omens as Poland hasalready seen major internation-al success in both volleyball andhandball at the Atlas Arena inrecent years. However, as it isan indoor venue, the format ofthe play will be slightly different
from the traditional form ofAmerican football. Arena foot-ball is a highly energetic versionof the game, with spectacularplays being the norm, and fanstreated to thrilling action onpractically every play.
“I expect it to be a veryinspiring experience for ourplayers, coaches and fans. I amexcited for the team to experi-ence the great event that I knowthe Polish federation is capableof delivering. We expect a fullarena and some great football,”said Tommy Wiking, president
of the International Federationof American Football (IFAF)and the Swedish AmericanFootball Federation (SAFF).
“We are delighted that Swe-den has accepted our invitation.We are well aware of thestrength and the experience ofthe opponent we will face in ournational team’s debut. We willdo our very best both on and offthe field,” said J´drzej St´-szewski, president of the PolishAmerican Football League(PLFA).
The president hasthrown his weightbehind a Poland-Slovakia WinterOlympics
Polish President Bronis∏awKomorowski has backed a jointPolish-Slovakian bid to host the2022 Winter Olympics. ThePolish and Slovakian Olympiccommittees had already signeda letter of intent regarding anofficial bid prior to MrKomorowski’s declaration ofsupport during his visit to Bia∏-ka Tatrzanska, in southernPoland, last week. But with thepresident now on board itseems that the chances of afuture Polish Olympics havenow come a step closer.
“If we want to co-host suchan event in 2022 we have tostart working on it today,” MrKomorowski said, adding thatinfrastructure improvementsneed to be completed in orderfor the bid to have a chance ofsuccess.
“We need to build cooper-ation with our Slovak neigh-bors. We could not prepare
this bid without them becauseour Tatra mountains are notas big as those in Slovakia,”he said.
According to the proposedplan, Kraków would host boththe opening and closing cere-monies, with the nearby resortof Zakopane hosting snow-boarding, cross country skiingand the biathlon. Slovakiawould organize other skiingevents and ice hockey.
Poland still has time to cometo a firm agreement and devel-op a detailed plan, with the finaldecision on the 2022 host notset to be made until July 31,2015, at the 127th IOC Sessionin Kuala Lumpur. The citiescurrently in the running areAlmaty, Beijing, Munich, Nice,Oslo and Lviv.
Poland’s most successfulWinter Olympic athletes ofrecent years are ski jumperAdam Ma∏ysz and cross-coun-try skier Justyna Kowalczyk. MrMa∏ysz won two silver medals atthe Vancouver 2010 games,while Ms Kowalczyk won gold,silver and bronze in the threecross-country events.
DDaavviidd IInngghhaamm
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The Warsaw Eagles faced off against the Gdynia Seahawks in last year’s PLFA NAC SuperFinal VII
JANUARY 21-27, 2013LLIIFFEESSTTYYLLEE22 www.wbj.pl
Acrobatics
Year of the SnakeAcrobatics of China –Happy New YearFebruary 1Sala Kongresowa, Pl. Defilad 1Warsaw
For the first time ever a troopof Chinese acrobats will per-form at the capital’s famed SalaKongresowa concert hall. Theacrobats, who hail from the
Guangxi region of southernChina, will perform in Warsawto commemorate the start ofthe Chinese New Year, with theyear of the Snake beginning onFebruary 10.
The show will feature 16 dif-ferent performances, which willinclude amazing stunts, dance,martial arts and traditionalmusic, all of which is sure toentertain the whole family.
Among the standout acts is“Monkey Fun” which will seeacrobats jumping and somer-saulting through hoops, and ahuman pyramid with numerousperformers balancing on top ofeach other. Tickets for theevent are priced from z∏.65.
DDaavviidd IInngghhaamm
For more information,log on to kongresowa.pl
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Exhibition
Vision of the past1947 / The Colours of Ruin.Warsaw and Poland in the photographs of Henry N. Cobb Ongoing until April 30Dom Spotkaƒ z Historiàul. Karowa 20Warsaw
This fascinating photo exhibi-tion is made up of images takenby American architect andthen-student at Harvard,Henry N. Cobb, during a visitto Poland in 1947. Taken twoyears after the end of WWII,the photos detail the true scale
of the damage inflicted on thecountry during the 1940s, con-taining photographs frommajor cities including Kraków,Szczecin, Warsaw and Wroc-∏aw.
As well as detailing the dev-astation, the photos also pro-vide an insight into the restora-tion of the country, with Polandseen at the time as a forward-thinking nation in regard toarchitecture, before the influ-ence of communist authoritiesdragged the country backwards.
As fellow American archi-tect Hermann Field, who
accompanied Mr Cobb on thetrip wrote, “In my opinion thetechniques of planning and thefinal maturity of the designwork is clearly in the lead. Therange of planning is completelyunique, and the standards usedshould be of interest to plan-ners and architects in othercountries. ... The dedication ofthese people for the future ofPoland made a huge impressionon us.”
DDaavviidd IInngghhaamm
For more information,log on to dsh.waw.pl
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Sadly, this year’s Consumer Electron-ics Show (CES) suffered a distinctlack of dodginess. There were nofirm-yet-flirty robotic school marms,zero advances in techno-latex and,most disappointingly, we didn’t see asingle “smart dungeon.”
The “smart home” was every-where, but nary a dungeon. Sigh.
To make matters worse, thesmart-home stuff was hardly revolu-tionary. Sure, there were smart appli-ances and smart lighting systems andsmart cyborg-kitten home-defensesystems that go mew-mew while theirbuilt-in lasers go pew-pew. But thosethings have been available for years.Most of them, anyway.
One thing was kind of new. Somecompanies were showing off home
“ecosystems” incorporatinga larger-than-ever number ofsmart devices. Unfortunate-ly, every firm is using propri-etary technologies – closedecosystems – so if you buyappliances from two compa-nies and a lighting systemfrom a third, they won’t beable to communicate.
That’s really annoying, sowe’re not giving those com-
panies any press.There were plenty of other, less
vexing trends at CES too. AmongTVs, 3D was conspicuously – andblessedly – not-hot this year; ultra-HD was the big thing instead.
Samsung’s 85-inch S9 UHD unitwas the belle of the ball. Oh yes, 85inches of sleek, ultra high-defini-tion screen. That’s roughly the sur-face area of a professional basket-ball player flattened by a roadroller.
The S9 UHD is set in an easel togood aesthetic effect, and the easelframe quite usefully incorporatesspeakers. The zillion-pixel screenwill let you count your favoriteactor’s pores and send you divingbehind the couch any time uglypeople come on-screen.
There’s no word on internationalrelease, but it’s rumored that Sam-sung will start selling the S9 UHD inlimited quantities in South Koreasoon at the low, low price of $38,000.
Smartphones were also ubiquitousat CES, though there were few unveil-ings. One interesting trend was thedebut of octo-core processors. Expectthese to start succeeding quad-coreprocessors in phones this year.
The biggest looker among smart-phones was Huawei’s Ascend Mate,and we mean that literally. The
Ascend Mate is a hulkingbeast of a device with a 6.1-inch HD screen. No pricinginfo available yet, sorry.
Its ginormousness aside,the Ascend Mate is a mostlyunexceptional piece of kit. Ithas a 1.5 GHz quad-coreprocessor, 2GB of RAM andruns Android 4.1. There’s an8MP camera in the back anda 1MP HD camera in thefront. For the “Fifty Shadesof Grey”-types out there, the
touchscreen is sensitiveenough to use while wearing leathergloves (no word on latex though).
So let the rejoicing begin! If theMaster allows it, of course.
Some exciting gaming gadgetswere present at CES as well. Valve,legendary maker of the “Half-Life”series, discussed its plans for a newconsole called Steam Box, whilealso supporting a new gaming com-puter called the Piston. Oculus Rift,a virtual reality headset, was namedbest-in-show by some visitors.
The biggest surprise came fromNVIDIA, the well-known maker ofgraphics cards. The firm unveiledProject Shield, an Android-pow-ered handheld device that resem-
bles an Xbox controller with a flip-upscreen.
Project Shield, which packs anNVIDIA Tegra 4 processor, is Wi-Fi-enabled and plays both Windows andAndroid games. There’s a speakersystem inside; the five-inch display isalso an HD touchscreen with arespectable 294 dots per inch.
Price is unknown at this point, butNVIDIA is entering a fierce market,with Nintendo and Sony on one sideand smartphone makers on the other.If it doesn’t price Project Shield com-petitively, it might as well give up andmake something completely different.
Smart dungeons, perhaps? Here’shoping. ●
JANUARY 21-27, 2013 LLAASSTT WWOORRDD www.wbj.pl 23
