A partial agreement with Port terminals are Techeye talks beach unions means miner JSW planning over z∏.1 billion fashion and summer could debut on time in expansions gadgetry 5 10 31 WWW.WBJ.PL WWW.WBJ.PL

VOLUME 17, NUMBER 18 • MAY 9-15, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127 Since 1994 . Poland’s only business weekly in English

REAL ESTATE Lokale Immobilia These angels mean business

WBJ presents a special 8-page COURTESY OF MAYLAND REAL ESTATE OF MAYLAND COURTESY • IGI’s Solaris Center supplement on the • Bella Dolina mall state of angel • Guy Perry interview investing in Poland 21-24 13-20 Where the grass is green Environment Minister Andrzej Kraszewski talks about the balance between preserving Poland’s lush nature and fueling economic growth 8-9

A guide to Polish business and industry Przewodnik po polskim biznesie i gospodarce General contractors 26-27 In this issue News ...... 2-4 Industry News ...... 5-6 Listed Firms ...... 7 Interview ...... 8-9 Business Environment ...... 10 Opinion & Analysis ...... 11 Angel Investing in Poland . . .13-20 Lokale Immobilia ...... 21-24 The List ...... 26-27 Markets ...... 28 Business Community ...... 29 Leading to bin Laden Hooligans cause havoc Arts & Culture ...... 30 Last Word ...... 31 The trail to Osama bin Laden reportedly Last week’s Polish Cup Final match ended in began with al-Qaeda interrogations at a riot; PM Tusk says he will have none of this secret CIA prisons in Poland 3 for Euro 2012 4 ¸UKASZ MAZUREK/WBJ/SHUTTERSTOCK

A GUIDE TO POLISH EXPORT is AVAILABLE NOW! To order: Please contact us at +48 22 639 85 68 or [email protected] 2 www.wbj.pl NEWS MAY 9-15, 2011

Portugal gets IN THE SPOTLIGHT Numbers in the News €78 billion bailout The Nord Stream pipeline z∏.3 million

Portugal has agreed to a recent years, Nord Stream is is how much Hanna Gronkiewicz-Waltz, the mayor of €78 billion financial being completed despite envi- Warsaw, has in Polish bank accounts, rescue deal with the IMF ronmental concerns of the Rzeczpospolita reported and the EU, making it the European Parliament and the third euro zone country to objections of Poland and the agree to a bailout. Baltic states, which see the 37% According to the package, project as running against €12 billion – some 15% – their political and economic of shares in BG˚ will be sold by the Treasury in a of the funds will go interests. public offering due to be completed on May 27 towards shoring up the It has been argued that the country’s banks, which pipeline will deepen Europe’s will have to significantly dependence on Russian gas 1.5 million

increase their capital OF NORD STREAM COURTESY and weaken the position of over the next 18 months. transit countries such as people attended the beatification of John Paul II The Nord Stream consortium security of the privately Poland and Ukraine. Its con- at the Vatican City on May 1 Grad to resign last week finished laying the financed €7.4 billion Nord struction was possible due to first of its two planned gas Stream project providing a the support of prominent Ger- this year pipelines on the Baltic Sea fixed link between the Euro- man and Russian politicians, z∏.35 billion bed, between the Russian pean gas grid and one of the and Poland’s Foreign Minister Treasury Minister town of Vyborg and Ger- world’s largest gas reserves in Rados∏aw Sikorski once is the total value of debt held by Polish households Aleksander Grad has many’s Greifswald. Three sec- Russia for at least 50 years,” famously likened the project announced that he will tions of the 1,224 kilometer Matthias Warnig, the manag- to the 1939 Molotov-Ribben- Quote of the Week resign from his post after scheme are now expected to ing director of Nord Stream, trop Pact, which divided Polish this autumn’s be joined together underwater said in a statement. territory between Russia and “We aren’t building stadiums parliamentary elections, in the summer and come “At a time when recent Germany. irrespective of whether online by the end of the year. world events have led to The Nord Stream consor- to host medieval customs” his party, Civic Platform Construction on the second increased concern about tium came into being in Prime Minister Donald Tusk comments on hooliganism at Polish soccer match- (PO), wins or not. “Every Nord Stream pipeline is sched- nuclear energy and energy November 2005. Its largest es, after suggesting that league games should be played to empty stadiums if it head of such a gigantic uled for completion in late imports from North Africa, shareholders are Russia’s can’t be brought under control organization as the 2012. When the twin lines our major new infrastructure Gazprom, which has a 51 per- Treasury Ministry, which become operational, Nord project takes on more impor- cent stake in the project, and manages a huge amount Stream will have the capacity tance for both Europe and Germany’s Wintershall and E. Figures in focus of assets and firms, to transport a total of 55 billion Russia,” Mr Warnig added. ON Ruhrgas, both of which Wage disparities should inform the market cubic meters of gas per year. One of the most controver- have 15.5 percent stakes. Average monthly gross wage in Poland in Q4 2010, when he will leave,” Mr “Europe will soon have the sial investments in Europe in Adam Zdrodowski by regions (in z∏.) Grad said in an interview with Onet.pl. Mr Grad 5,000 said he felt that “running On WBJ.pl the ministry for one 4,000 [parliamentary] term is definitely enough.” Documentary delight 3,000 th Through May 15, the 8 edition of the Planete Doc Film Festival is 2,000 Poland’s on in Warsaw’s cinemas. The festival is among very few of its kind 1,000 millionaire in Europe, and presents a number of award-winning documen- taries from around the world. WBJ.pl selected some of the must- zł mayors see flicks. Log on to watch the descriptions and trailers and Central South Northwest North East The country’s richest decide for yourself. mayors are also leaders of Poland’s largest cities, Source: Central Statistical Office reports Rzeczpospolita, DATELINE citing a recent analysis of Company index property statements.The May Agroton ...... 7 Handuk Consulting Nest Oil Group ...... 7 mayors of Warsaw, Gdaƒsk, Kraków, 8-11 HR CONGRESS 16-18 EUROPEAN ECONOMIC CONGRESS Alterco ...... 22 Limited ...... 22 Nord Stream ...... 2 th Event: Most important economic event in Central Wroc∏aw, Olsztyn, Event: The 40 IFTDO World Conference & Exhibi- Anti ...... 28 HSW Stalowa Wola ...... 6 Optimus Pascal Europe. Location: Katowice. ww.eec2011.eu Poznaƒ, Szczecin, tion international HR Congress & Expo. Apeiron Synthesis ...... 19 IGI ...... 23 Location: Hotel Marriott, Warsaw Multimedia ...... 17 Rzeszów and Gorzów 19 COIE CONFERENCE Arie E&P Company...... 7 Ipopema Securities...... 7 Wielkopolski have each www.iftdo2011.com Organic Event: Inauguration of the Investor and Exporter Arvato Services Irish amassed personal wealth Farma Zdrowia ...... 13 10-13 TRANSPORT LOGISTIC EXHIBITION Service Center of the Âwi´tokrzyskie Voivod- Polska ...... 24 Investment Group ...... 23 of more than z∏.1 million. ship Marshal’s Office. Location: “¸ysogóry” Panattoni Europe ...... 22 Event: International Exhibition for Logistics, Mobili- Astarta...... 7 IVG Hotel, Kielce. www.sejmik.kielce.pl Petrolinvest ...... 6 ty, IT and Supply Chain Management. Bank Gospodarki Institutional Funds ....24 Analysts: Lotos Location: Messe Munchen International PKN Orlen ...... 28 20-22 INTERNATIONAL MBA ALUMNI CONGRESS ˚ywnoÊciowej ...... 7 Jastrz´bska Spó∏ka www.transportlogistic.de Event: Aimed at the integration of MBA students PKO BP Inwestycje ....24 sale unlikely Bank Gospodarstwa W´glowa ...... 5 and alumni from all over the world. Location: Polcolorit...... 28 10-13 AUTOSTRADA-POLSKA Kraków. ksb.uek.krakow.pl Krajowego ...... 20, 21 JSK Architekci...... 23 Unnamed sources told th Rzeczpospolita that four Event: 17 International Fair of Road Construction Bank Pekao...... 28 Kawasaki...... 31 Polimex-Mostostal ....28 Industry. Location: Kielce Trade Fairs Russian oil concerns are 24-25 REAL VIENNA BRE Bank ...... 28 Kernel ...... 7 Polnord ...... 24 www.targikielce.pl Event: The Real Estate and Investment Fair focused interested in state-owned Calatrava Capital ...... 28 KGHM ...... 5, 28 on Central & Eastern Europe. PZU ...... 28 refiner Lotos. Two 10-13 TRAFFIC-EXPO – TIL Location: Vienna. www.realvienna.at Capital Park ...... 24 Krachem ...... 28 Rainbow Tours ...... 28 companies from Western th Event: 7 International Fair of Infrastructure, Airport Corius ...... 24 KSG Agro...... 7 Reinhold Polska AB ..22 Europe are also 25-27 3RD ANNUAL BUILDING Technologies and Infrastructure Exhibition. Cyfrowy Polsat ...... 28 Kulczyk Investments....7 reportedly interested, but Sadovaya ...... 7 Location: Kielce Trade Fairs MATERIALS CONFERENCE these firms are only Dom Development ....24 Kulczyk Oil Ventures....7 www.targikielce.pl Event: The main theme of this year’s conference Silurian ...... 6 indirectly related to the E. ON Ruhrgas ...... 2 LiuGong...... 6 will concern honesty in the construction sec- Sonel ...... 28 refining industry. Experts 10 -13 MASZBUD tor. Location: Hotel Qubus, Krakow EGIS...... 24 Lotos ...... 2, 28 TPSA ...... 28 told the newspaper that if th Event: 13 International Construction Equipment www.dlabudownictwa.pl Eurofaktor ...... 28 Mak Dom...... 21 no Western oil companies Unilever ...... 14 and Special Vehicles Fair. Location: Kielce FH Jago ...... 28 Mayland Real Estate..21 offer bids and Poland is 26-27 EUROPEAN FINANCIAL CONGRESS Wandalex ...... 28 Trade Fairs. www.targikielce.pl Fiat...... 19 Mielno Holding-Firmus left to choose between Event: A discussion platform for foremost experts Warfama ...... 28 Russian companies 11-13 GENERA and eminent representatives of business, Gazprom ...... 2 Group...... 21 alone, then the sale is academic and political circles. Location: Getin Holding ...... 28 Milkiland ...... 7 Wintershall ...... 2 Event: Energy and Environment International Trade unlikely. ● Fair. Location: Madrid, Spain. www.ifema.es Sheraton, Sopot. www.efc2011.com Grupa ˚ywiec ...... 19 Neinver Poland ...... 22 WSE ...... 7 MAY 9-15, 2011 NEWS www.wbj.pl 3

Death of Osama bin Laden Beatification of John Paul II Millions of Poles Interrogations in Poland may have watched as Pope Benedict XVI announced the beatification of the late Pope John Paul II on been crucial to finding bin Laden May 1. Beatificaiton is the last stage before Vital information that led to last week’s killing of Specifically, the Associated sainthood. Many braved the al-Qaeda leader was allegedly acquired from Press reported that Khalid the rain to watch the members of the terrorist group in Poland Sheikh Mohammed provided proceedings on large the nom de guerre of one of bin screens erected The interrogation of top al- pectedly includes Poland, Laden’s most trusted aides specially in public places Qaeda members at secret CIA although at this stage very few and that the CIA obtained throughout Poland. Over prisons in Poland and else- details have emerged due to similar information from al- 1.5 million people were where might have helped lead the secrecy surrounding the Libi. Both were subjected to present at St. Peter’s to the discovery and killing of CIA’s so-called black sites. harsh interrogation tactics Square in the Vatican Osama bin Laden by elite US According to current and inside CIA prisons in Poland City for the ceremony. forces in Pakistan, it was former US officials cited by and Romania, AP reported. reported last week. several media sources, However, it was only last Flag Day As details of the operation between 2002 and 2005, top al- year that US intelligence was are being disclosed, it has Qaeda commanders and oper- able to locate Sheikh Abu celebrated emerged that the person who atives, including Khalid Ahmed and follow him to bin unwillingly led the US to bin Sheikh Mohammed, Hassan Laden’s compound in the Numerous private and Laden was his trusted courier, Ghul and Abu Faraj al-Libi, northeastern Pakistani town of public buildings in Poland Sheikh Abu Ahmed. all detainees in the CIA’s Abbottabad. displayed the country’s The story of how US intelli- secret prison network, In the US, the revelations national colors on May 2 gence agencies became aware revealed the importance of the have revived the debate about as Poles celebrated the of Sheikh Abu Ahmed unex- courier. those contested black sites Flag of the Republic of and the even more controver- Poland Day. Meant to sial interrogation techniques popularize and spread allegedly used there. Howev- knowledge about Polish er, officials have stressed that national identity and neither the courier’s name nor symbols, Polish Flag Day the location of the compound has been celebrated in Abbottabad, Pakistan, came since 2004. from detainees. EASTNEWS “It took years of collection Times as saying. Poland, have remained silent. Obama heralds and analysis from many differ- “The debate about A number of sources have ent sources to develop the whether we would have gotten stated with certainty that the Constitution case that enabled us to identi- the same information through CIA operated a “black site” in fy this compound and reach a other approaches, I think, is Poland between 2002 and Day judgment that bin Laden was always going to be an open 2005. However, representa- US President Barack likely to be living there,” question,” CIA Director Leon tives of all Polish governments Obama and US Secretary Tommy Vietor, spokesperson Panetta told NBC News. since that time have denied or of State Hillary Clinton

COURTESY OF THE WHITE HOUSE COURTESY for the National Security Polish officials, who have avoided commenting on the congratulated and sent President Obama and his team in the White House Situa- Council at the White House, never openly admitted the issue. their best wishes to the tion Room watching the events in Pakistan as they unfold was quoted by The New York existence of such a site in Alice Trudelle people of Poland as they celebrated the 220th anniversary of the first Political reaction codified Polish constitution last week. “On behalf of the American people, I send Poland congratulates Obama my best wishes to all who celebrate Polish Constitution Day – here in Polish politicians hail NATO’s forces. America, in Poland and bin Laden’s death as a Though many have voiced around the world,” Mr major victory in the worries that bin Laden’s Obama said. The Polish War on Terror death could lead to retalia- Constitution of May 3, tion from terrorist groups, 1791 was the second Poland was quick to congratu- Polish authorities said they national codified late its American allies after were remaining calm but vig- constitution in the world, President Barack Obama ilant. after the US’s. announced US special forces “I think there is no reason had killed al-Qaeda leader for concern, although it is Channel- Osama bin Laden. always better to remain cau- “This is an important day tious,” said President share deal for Poland, too,” said Presi- Komorowski. “I know that dent Bronis∏aw Komorowski. Polish security services have Two of the largest media “Let’s not forget that one of already increased their groups on the Polish the objectives of the anti-ter- involvement in monitoring market, Cyfrowy Polsat rorist coalition established 10 the situation.” and TVN, have signed an years ago, in which Poland Despite requests from unprecedented also took part, was to punish Grzegorz Napieralski, head agreement, Dziennik those responsible for the of the Democratic Left Gazeta Prawna reports. World Trade Center terrorist Alliance (SLD) party, the As a result, the two

attacks.” OF WHITEHOUSE.GOV COURTESY president’s office maintained groups will share content “Justice triumphed. Evil Over 56 million Americans watched President Obama announce Bin Laden’s death last week that none of the from their respective should never go unpunished,” institutions responsible for satellite platforms. Prime Minister Donald Tusk ident Obama’s announce- Mr Sikorski recalled that and murdered in Pakistan by national security had detect- According to Pawe∏ said in a statement, adding ment, said that “justice has Poles were killed in the World al-Qaeda sympathizers. ed threats related to bin Puchalski, analyst at BZ that bin Laden’s death is a been done.” Trade Center attack, as well Several official sources Laden’s death and would WBK, TVN’s ‘n’ platform warning to all terrorists. “We congratulate our as in al-Qaeda attacks in Bali, confirmed that bin Laden’s therefore not hold a meeting will gain the most from Foreign Minister Rado- allies. We rejoice together Madrid and London. He also death would not change of the National Security the contract, since its s∏aw Sikorski, echoing the with the American people,” recalled the fate of geologist Poland’s commitment in Council regarding this issue. offer lacked some now-famous words from Pres- he said. Piotr Staƒczak, kidnapped Afghanistan as part of Alice Trudelle popular channels. ● 4 www.wbj.pl NEWS MAY 9-15, 2011

Hooliganism Labor Germany opens labor Government forced to act market to Poles amid over rising hooliganism workers’ fears

Things got ugly at a German politicians help find illegal workers, recent Legia-Lech have attempted to Finance Minister Wolfgang match in Bydgoszcz, quell worries by Schaeuble told the newspaper. leading officials to promising vigilant Ms von der Leyen also close stadiums to fans checks on employers attempted to assuage fears that workers from the east would over-burden Germany’s Hooliganism is back on the Violence marred the May Day welfare state system. agenda following a recent inci- marches in Germany, as work- “The vast majority will be dent involving rampaging Pol- ers’ fears that an influx of young, educated and mobile ish soccer fans. Officials, migrant labor from the east workers,” she said. including Prime Minister Don- would lead to wage dumping “They will contribute to ald Tusk himself, have called and job losses spilled over into boosting our country econom- for stricter measures to be scuffles with police. ically and fill part of the skilled implemented ahead of Euro Germany, along with Aus- labor shortage.” 2012. tria, was obliged by the Euro- Other German politicians Last Tuesday’s Polish Cup pean Union to open its labor have also emphasized the ben- Final match between Legia market to the eight countries, efits of migration from the east Warszawa and Lech Poznaƒ in including Poland, which joined to the country’s economy. Bydgoszcz ended in a riot, with the EU in 2004. “Germany suffers from a police fighting hooligans who German trade unions fear shortage of skilled labor,” Ger- had ripped out seats, invaded that up to 800,000 workers man Liberal Nadja Hirsch said, the pitch and thrown metal could flood the job market over noting that by 2025 Germany’s objects and fire crackers. the next two years, leading to active population will decrease

Police resorted to using SHUTTERSTOCK wage levels being undercut and 6.5 million to 38.1 million. water cannons to control the The latest incident caused z∏.40,000 in damage and cost z∏.1 million to police the welfare system swamped. “This shortage cannot be crowd, with the whole incident Two prominent German compensated by better educa- causing about z∏.40,000 in announced that police forces revealed that the head of the it did not take long for authori- politicians have attempted to tion or training, the improved damages. However, it cost an and organizers of mass events police team responsible for ties to act. On Thursday, offi- ease workers’ worries by prom- integration of women or the estimated z∏.1 million to police should increase cooperation, fighting stadium hooliganism cials from the Wielkopolskie ising to shield the labor force prolongation of working life the event. while hooligans banned from has been suspended for per- (where Poznaƒ is located) and from the impact of the changes. alone. We do need employees Officials from European soccer matches should also be sonally writing to Poland’s Mazowieckie (Warsaw) voivod- Labor Minister Ursula von from other countries as well soccer’s governing body, banned from other large-scale soccer authorities, asking ships decided to close the stadi- der Leyen told the widely cir- and should have opened our UEFA, were present at the events. them to issue a ticket for the ums of Lech and Legia to fans culated Bild newspaper that labor market even earlier,” she match in Bydgoszcz and a Mr Tusk said Poland had cup final to a hooligan for their next league matches, sectors such as catering and added. statement was later released “many strict regulations” on leader. which were set to take place last heavy industry, where unions The latest job-market fig- saying they were “aware of the stadium security and called on The Legia Warszawa sup- Friday. are particularly fearful of wage ures to come out of Germany incidents and will continue to the authorities and match porter, nicknamed “Staruch,” They justified the decision dumping, would be monitored have provided a boost to those work together with the various organizers to strictly adhere to is currently subject to a stadium saying that police had closely. who say Germany’s export-led entities involved in security them. ban after he assaulted his informed them the two clubs Checks, she said, would economy can handle the matters to develop and put in “They should follow police team’s captain during a match. couldn’t guarantee safety in ensure the minimum wage was expected surge of labor. place all necessary measures.” guidance and close stadiums Nevertheless, after Legia won their stadiums. enforced and incomes were For the first time since 1992, to fans if security cannot be the game, players handed him Both Legia Warszawa and registered. seasonally adjusted unemploy- PM Tusk weighs in assured during matches,” Mr the trophy to hold up in front of Lech Poznaƒ have said they The Finance Ministry, ment in Germany fell below In response to the riots, Prime Tusk said. the crowds. will protest the decision. meanwhile, will employ an three million in April. Minister Donald Tusk has In a bizarre twist, it was Following Mr Tusk’s words, Remi Adekoya extra 150 workers this year to Gareth Price

Criminal activity Crime up in Poland and EU, as economic crisis bites

Accountants, printers Europol, said in a statement. greater social tolerance towards In its report, the organiza- ecstasy production. EU countries, while Viet- and lawyers are “The further expansion of counterfeiting and labor tion pointed to two large-scale Organized criminals in namese groups in Poland increasingly finding internet and mobile technolo- exploitation, may lead to illicit criminal ventures common in Poland were also found to be were found to be responsible employment in gies, the proliferation of illicit activity accounting for a greater Poland: the production of syn- active in beverage counter- for the large-scale domestic criminal organizations trafficking routes and methods share of GDP in Europe. thetic drugs and the counter- feiting and “hit-and-run” cultivation of cannabis. as well as opportunities offered feiting of cigarettes. Cigarette property offenses in other Alice Trudelle by the global economic crisis, Impact on GDP smuggling is estimated to cost Organized crime in Europe is have all contributed to the A 2010 analysis by economist EU national budgets around Murky zones thriving as a direct result of the development of a more potent Friedrich Schneider and global €10 billion annually. Shadow economy compared to official GDP, global economic crisis. Difficult threat from organized crime.” consulting firm A.T. Kearney Designer drugs (dopalacze) selected European countries, 2009 economic times and a lack of The increase in criminal estimated that Europe’s shad- were also a hot issue in Poland Country GDP Value of shadow economy % of GDP legitimate employment oppor- activity has resulted in part ow economy was worth about last autumn, when selling Austria €274 billion €23 billion 8% tunities mean increasing num- because criminal entrepre- €2.1 trillion. Its value varied points were subjected to a gov- Czech Republic €137 billion €23 billion 17% bers of people have become neurs can offer alternative from around 10 percent of ernment crack-down, while Estonia €14 billion €4 billion 30% more likely to engage in crimi- employment opportunities to GDP in some Western Euro- tougher legislation regarding France €1.91 trillon €221 billion 12% nal activity. Society, mean- specialists in the shipping, pean countries to around 30 their use was also brought in. Germany €2.41 trillon €352 billion 15% while, has become more toler- printing, pharmaceutical, legal percent in Eastern Europe. Europol’s report also Greece €237 billion €59 billion 25% ant towards criminal activity. and financial sectors. The value of Poland’s shad- helps shed light on what Italy €1.52 trillion €335 billion 22% These are among the main Specific examples provided ow economy was estimated at might be the result of a far- Latvia €19 billion €5 billion 27 findings of the European Police in the report include cases of 26 percent of national GDP. wider movement in the inter- Lithuania €27 billion €8 billion 30% Office’s (Europol) most recent previously legitimate printing While not a major hub for national drug trade. In- Poland €310 billion €80 billion 26% report on organized crime in firms involved in euro counter- organized crime in Europe, creased production of syn- Portugal €168 billion €33 billion 20% the European Union. feiting (which has increased by and despite the fact that it has thetic drugs created to bypass Romania €116 billion €34 billion 29% “Organized crime is a multi- 31 percent in 2010-2011 com- weathered the global crisis rela- existing drug laws seem to be Spain €1.05 trillion €205 billion 20% billion euro business in Europe pared to 2007-2008). tively well, Poland was also linked to higher prices for Switzerland €355 billion €29 billion 8% and it is growing in scale,” Rob The report says that found by Europol to be home cocaine and heroin, as well as UK €1.56 trillion €170 billion 11% Wainwright, director of increased crime, coupled with to increased criminal activity. to a significant reduction in Source: Friedrich Schneider and A.T. Kearney, “The shadow economy in Europe, 2010” MAY 9-15, 2011 INDUSTRY NEWS www.wbj.pl 5

Coal mining Banks’ takings to rise by Progress and catastrophe at JSW over 25% The combined net profit While talks with week we will conclude every- of all the banks in unions ran on through thing,” she added. Poland will increase by the night, tragedy Unions have held a variety 25.6% this year struck at one of JSW’s of strikes in recent weeks in a compared to 2010, mines last Thursday concerted attempt to extract according to data demands from the government provided by the Financial ahead of JSW’s planned initial Supervision Authority, as The Polish government has public offering on the Warsaw quoted by Dziennik reached a partial agreement Stock Exchange. Gazeta Prawna. The with unions at state-controlled The striking workers, fear- estimates were coal miner Jastrz´bska Spó∏ka ing for their job security, do not calculated based on W´glowa (JSW), making it want JSW to debut before their forecasts provided by more likely plans to float the conditions have been met. financial institutions. miner on June 30 will go ahead. Among the worker’s still- Earlier data showed After 11 hours of overnight unmet demands is a hike in pay Poland’s banking sector negotiations, unions agreed to of 10 percent and an agreement made a total profit of end their work-to-rule strike in from the Treasury Ministry that z∏.2.01 billion in the first exchange for 10-year job guar- it will retain a majority stake in two months of the year – antees, Deputy Economy Min- the miner after the debut. around 34% more than in

ister Joanna Strzelec-¸obodz- To launch the IPO on June OF JSW COURTESY the same period of 2010. iƒska told the press. 30, the government will first A methane explosion at JSW’s Krupiƒski mine ended in disaster last week “A significant agreement has need to issue a prospectus with Industry been reached, yet there is a updated information to the reg- last Thursday, a gas explosion at As WBJ went to press, total, 15 miners were recover- large part in front of us,” Ms ulator by May 9, Ms Strzelec- JSW’s Krupiƒski mine resulted another rescuer, who had ing in the hospital from severe sees red Strzelec-¸obodzinska said. ¸obodzinska said. in the deaths of one worker and become trapped, remained burns. “However, I think this next While talks were underway a rescuer. missing underground. In Gareth Price The number of Polish manufacturing companies in the red is KGHM wage dispute decreasing. Still, Internet drug sales roughly every fifth medium-sized or large gets nasty, Tusk steps in manufacturing company on the rise in Poland recorded a loss in 2010, Central Statistical Office (GUS) data shows. The market for internet drug to the value for money that tional pharmacies. Among manufacturers sales in Poland is now worth they offer. Consumers are also “With the legislation which employing more than 49 z∏.50 million, with the market increasingly likely to buy drugs now governs the market, I see people, 21.6% did not continuing to expand at a online because of the conven- no threat from e-pharmacies. see a profit. That’s 2.6% faster rate than conventional ience this type of shopping They all need to adhere to less than in 2009. drug sales, according to a affords. concrete regulations, accord- Among the group were report by pharmaceutical The ease of comparing ing to which they have to be manufacturers of intelligence firm IMS Health. prices online and the fact that run by traditional pharmacies tobacco goods (41.6%), Pharmacies are not allowed online purchases protect cus- or pharmacy points,” Ms Ste- clothes (34.3%), metal to sell prescription drugs over tomer anonymity regarding faƒczyk said. products (33.5%) and the internet, so the above fig- embarrassing illnesses, has “What should be moni- textiles (33.2%). ure of z∏.50 million only also encouraged more people tored with greater attention is reflects sales of OTC drugs to shop online. the spread of illegal drug Franchise and cosmetics. However, this Yet in Ms Stefaƒczyk’s view, stores, which may be mistaken

COURTESY OF KPRM COURTESY has not prevented companies the fact that internet drug sales for e-pharmacies by some cus- system The PM responded strongly to violence at the firm’s HQ from offering prescription are on the rise should not be tomers,” she added. drugs in their online stores. In regarded as a threat to tradi- Katarzyna Piasecka increasingly Company security guards were the average salary at the com- order to comply with Polish popular left injured and an administra- pany rise to above z∏.9,000 per law, websites only accept tion building was damaged month. Unions however, are orders from customers, who Small, independent after a wage protest at KGHM demanding z∏.300 more. must then visit a pharmacy to stores in Poland are turned violent last Thursday. Prime Minister Donald collect their products. finding it increasingly Several hundred workers at Tusk, who also took firm action According to experts, difficult to remain the state-owned metals miner against soccer hooliganism last obtaining drugs over the inter- competitive because of attacked guards with wooden week, called for a strong net is becoming more popular the proliferation of clubs and eggs outside the com- response against those workers simply because such medicines discount stores, which pany’s headquarters in Lubin, who had committed acts of vio- are cheaper. Depending on the offer higher quality southwest Poland. Six guards lence. product, online pharmacies merchandise at better were wounded, one of whom “Hooligans cannot pretend offer prices between five to 20 prices. Up to half of was left with a broken arm. to be labor union activists. percent cheaper than conven- independently run and Company president Her- Those who have committed tional pharmacies, Puls Biznesu non-affiliated stores are bert Wirth was inside the build- legal offenses or crimes will be reported. considering joining a ing at the time discussing the prosecuted and will not hide However Monika Ste- franchise, according to a pay dispute with union leaders. behind the banners of labor faƒczyk, a pharmacy market study by Makro Cash &

KGHM’s management had unions,” Mr Tusk told a news analyst at PMR Publications, OF WIKIMEDIA COMMONS COURTESY Carry, as quoted by offered workers a wage hike of conference. said e-pharmacies owe their Drugs sold on the internet are up to 20 percent cheaper Dziennik Gazeta 4.6 percent, which would see Gareth Price increased popularity not only than in stores Prawna. ● 6 www.wbj.pl INDUSTRY NEWS MAY 9-15, 2011

Chinese investor to Fuels buy stake in HSW Petrolinvest looks to enter new markets

The oil and gas firm “The company’s main objec- may look to enter the tive set out in its new strategy shale gas and is to reach a positive cash flow renewables sectors as soon as possible,” daily Parkiet reported. Oil and gas exploratory firm Other strategic objectives Petrolinvest looks set to outlined in the letter are: the expand the scope of its opera- increase of trade in petrole-

SHUTTERSTOCK tions by entering the renew- um products and their deriv- The deal to buy a stake in HSW could be worth more able energy and shale gas atives by expansion abroad, than z∏.250 million markets. the provision of advanced Silurian, a subsidiary of technologies for energy pro- LiuGong, a Chinese manufac- “The signing of the condi- Petrolinvest, has already duction from renewable and turer of heavy machinery, is tional agreement practically applied to the Ministry of alternative sources, and aqui- set to acquire a stake in HSW seals the deal. After that it Environment for two licenses sitions of firms with a similar Stalowa Wola, a construction will just take a few weeks for to explore shale gas in Poland. profile. machinery and military equip- the investor to physically take The company also plans to The company’s principal ment manufacturer, Bartosz over the business,” said Mr take similar steps in Romania, owner, Ryszard Krauze, could Kopyto, a spokesperson for Kopyto. Ukraine and other former also be set for more bad news, the firm, confirmed to WBJ. The Polish state currently Soviet countries, Rzecz- as the drill currently being “HSW is focused on three controls over 80 percent of pospolita reported. used by Petrolinvest to create pillars, the production of mili- HSW, which employs about Petrolinvest’s change in the Shyrak-1 well in Kaza- tary equipment, construction 2,000 workers. strategy is a direct attempt to khstan could be moved, as its equipment and cooperative Although the exact improve its financial standing Italian operator has struck a services. It is the second part amount of the transaction is after recent difficulties. In new deal with a rival firm. which will be sold,” said Mr confidential, according to 2010, cash flow from operat- Petrolinvest started life in Kopyto. daily Rzeczpospolita’s calcula- ing activities and investment April 1991 as one of the first A preliminary agreement tions, the value exceeds z∏.250 was negative and last week importers of fuels to Poland was signed by HSW and the million. Mr Kopyto refused to shares in the firm fell over 2.7 after the end of communism. Chinese investor on January confirm or deny the figure, percent to z∏.9.93. Lately it has focused on trad- 18 and a conditional sale but added that HSW was “not In a recent letter to share- ing in liquefied petroleum gas

agreement will be signed correcting it either.” holders, Petrolinvest CEO and crude oil. SHUTTERSTOCK within the next two months. Remi Adekoya Bertrand Le Guern, said Katarzyna Piasecka The shale gas market could secure Petrolinvest’s future

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Oil WSE launches Ukraine index Kulczyk’s oil empire The Warsaw Stock Exchange dent of the WSE, emphasized investing in Ukrainian busi- launched its latest index last this goal during a debate at the nesses. Wednesday – the WIG- 20th anniversary of the bourse With the debut of grain and expanding into Nigeria Ukrain, a separate listing of last month, where he said the oilseed producer KSG Agro five Ukrainian firms which are WSE planned to attract firms last Wednesday, there are now already present on the Polish from countries like Ukraine a total of eight Ukrainian bourse. The firms are Agro- and Belarus. firms listed on the WSE, seven ton, Astarta, Kernel, Milki- At the launching of the on the main floor and one on land and Sadovaya. WIG-Ukrain, Mr Sobolewski the alternative NewConnect The creation of the index is said the index was meant to bourse. The WSE now lists a a response to increased inter- show that the Polish bourse is total of 31 foreign firms. est in the WSE from Ukrain- winning the competition The WIG-Ukrain finished ian firms, and is part of the against its regional rivals for the week at 892.23, down 2.3 bourse’s strategy to attract Ukrainian firms. percent since its launch last more firms from the east. It is also designed to help Wednesday. Ludwik Sobolewski, presi- investors who are interested in Remi Adekoya COURTESY OF SHELL COURTESY Mr Kulczyk’s companies are expected to work within a consortium

Companies owned by (KOV), play a prominent role, Biznesu wrote. the mogul have has reportedly won a tender According to information reportedly won a $600 and bought a concession previ- obtained by African media million tender for ously owned by Shell. and cited by the Polish daily, extraction rights The agreement will be final- the consortium offered $600 ized once all the needed per- million for 45 percent of the Poland’s richest man, Jan Kul- mits have been obtained. Jan extraction concession for Oil czyk, is looking to invest in West Kulczyk’s partners in the proj- Mining License 42. The re- Africa’s oil market. According ect include Nest Oil Group and maining 55 percent belongs to

to unnamed sources cited by Arie E&P Company, which are the Nigerian National Petrole- OF THE WSE COURTESY Puls Biznesu, two of his compa- taking care of technical and um Corporation. Time to pay more attention to Ukrainian firms on the WSE nies are in the process of enter- prospecting work. The confirmed reserves of ing the Nigerian market. KOV will most likely be OML 42 amount to 1.8 billion The Neconde Consortium, the main technical partner, barrels of crude oil. in which Kulczyk Investments while KI will probably take Gareth Price (KI) and Kulczyk Oil Ventures care of the financing, Puls and Remi Adekoya BG˚ to debut on stock market, maximum share price set

Bank Gospodarki ˚ywnoÊ- ciowej (BG˚) has announced its IPO will take place on May 27, with a maximum share price for individual investors set at z∏.90 per share, accord- ing to the bank’s issue prospectus. The bank will issue over 16 million shares, about 37.2 per- cent of total BG˚’s share cap- ital. If all of the shares sell at the maximum price, the offer Daily executive digest could be worth z∏.1.44 billion, valuing the entire firm at z∏.3.88 billion. Each individual will be able

to make one offer and buy OF BG˚’ COURTESY between 12 and 120 shares at a BG˚’s IPO could be worth z∏.1.44 billion maximum cost of z∏.10,800. The Treasury is making a 25 percent controls a 37.23 percent stake casts for the future of BG˚ as Poland A.M. gives you stake available to individual in BG˚, while the remaining well as the Polish banking mar- the biggest Polish stories of the day. investors within the current 3.42 percent is in the hands of ket,” he said. This ambitious offer, although it has said that individual and legal entities, share price, higher than that of Have the most valuable news delivered figure could rise to 30 percent. including cooperative banks any Polish bank listed on to your inbox each weekday morning. Private investors will be and BG˚’s employees. WSE, has a considerable able to present their offers for According to Tomasz Bursa, chance to be accepted by BG˚’s shares until May 16. analyst at Ipopema Securities, shareholders, he said. At present, the majority BG˚’s offer is ambitious, but “The popularity of the shareholder in BG˚ is has the potential to meet share- shares to a great extent Rabobank International Hold- holders’ interest. depends on BG˚’s market- www.polandam.pl www.polenammorgen.pl ing, which has 59.35 percent of “The price of z∏.90 per ing,” Mr Bursa added. Sign up for a 2-week free-trial! German version: the shares. The Polish Treasury share implies optimistic fore- Katarzyna Piasecka 8 www.wbj.pl INTERVIEW MAY 9-15, 2011

Environment Poland addresses climate challenges

Minister of the Environment Andrzej a more tailor-made approach need to construct 3,500 km of December 31, 2008. additional burden on GDP far Kraszewski talks to WBJ about EU climate to define Poland’s fair share in electricity transmission lines to The derogations are a tem- higher than one percent. policy and Polish legislation on environmental meeting this challenge. modernize our energy sector, porary privilege, yet their real protection to build over 12,000 waste util- aim is to slow down the So what is Poland’s plan of What arguments will you put ity facilities and make other increase in energy prices and action? Ewa Boniecka: During the EU’s actions as bringing both forth to convince Poland’s enormous investments related smooth its impact on cus- Together with Deputy Prime Polish presidency of the EU, opportunities and challenges. partners and the European to energy production and pro- tomers. Minister Waldemar Pawlak we the long-term vision for low Opportunities, because cli- Commission that the country tection of the environment. are making an assessment of carbon emissions in the EU mate policies can help bring needs more time to deliver its No country can do this within The European Commission how to prepare our economy to will be in focus. What tasks do about the modernization of share of reductions? a few years, so we need as recently published a road map meet the goals set by the EU to you see ahead for your min- our economy, increased effi- Our presidency should not be much as 15 to 20 years to catch towards a low-carbon, compet- 2020 and discussed by 2030, istry in that respect? ciency in resource use and pos- treated as a special occasion up with other EU members. itive EU economy in 2050. The 2040 and 2050. It looks like we Andrzej Kraszewski: Poland is itive lifestyle changes. Chal- for promoting our own inter- document sets the perspective will have to do more than what legally required to implement lenges, because the costs can ests, because we have to take In 2008, Prime Minister Tusk of reducing greenhouse gas we had planned towards 2020. the so-called “EU climate and be too high for countries like care of the general interests of won the possibility for Poland emissions by about 80 percent We need to define our opti- energy package,” which oblig- Poland, which are still so the European Union. We will, to receive free emission by 2050. How do you asses it? mal energy mix. [This will] es the Union to reduce its strongly dependent on coal. however, do everything possi- allowances for the power sec- The road map is not legally probably [include] a fair share ble to help our partners under- tor. How could this help binding for EU members – it is of coal – at 40 percent – exploit- stand Polish difficulties in Poland in its transformation? at the moment a vision of the ed in very modern installations, reducing CO2 emissions in a It will help a lot, because that European Commission. If we as well as nuclear energy and short period of time. instrument – the so-called evaluate the proposed reduc- renewables. This, along with “We need a more tailor-made approach to We will point to two facts: derogations laid down in the tion pathway, it opens the well-managed land use and First, that Poland – uniquely Emissions Trading Directive – question of whether Poland’s forests for absorbing CO2, define Poland’s fair share in meeting the amongst EU countries – is means that Poland has a tran- current efforts to cut emissions could allow us to meet the chal- EU’s lower carbon emission targets” over 90 percent dependent on sitional period till 2020 before by 2020 will be sufficient to ful- lenges of climate policy. Again, coal for electricity production, full auctioning of CO2 emis- fill that pathway’s demands. to make that happen we need and so our level of CO2 emis- sion allowances. This instru- I doubt if that will be possi- more time than other EU sions is high. Second, that ment will be available for exist- ble, because we need to look member states. I believe that greenhouse gas emissions by Our assessments show that Poland began its economic ing plants as well as those that and accommodate each coun- our arguments are being met 20 percent by the year 2020, the fulfillment of the EU’s 20 transformation barely 20 years were “physically initiated” try’s national circumstances with more and more under- compared to 1990. We fully percent reduction goal could ago, with triple-digit inflation, [this is taken to mean that con- and possibilities. In my view, standing in the EU. understand the necessity of cost the Polish economy no modern infrastructure, as struction has started, though Poland is not yet ready to sup- having an active climate- between 0.8 and one percent of well as old industrial facilities there is some disagreement as to port lifting the EU reduction Why is green energy develop- change policy and look at the GDP per year. Hence we need and power plants. We still its exact meaning – ed.] by target, as it could mean an ing so slowly in Poland?

Poland’s abundant green areas are not always well cared for SHUTTERSTOCK MAY 9-15, 2011 INTERVIEW www.wbj.pl 9

There are a few reasons. previously, yet far from the Poland has a major problem and hope that Polish society Investments in developing level of environmental pro- with people dumping their will mature in time so that the wind farms, in constructing tection in countries such as garbage in forests and natural Green Party plays a significant solar energy installations and Sweden. Our cause for pride areas. What can be done to role in our political life. in producing biomass are is Poland’s national parks protect against this practice? I am not trying to be flatter- expensive. Such power plants system and its participation We have to change our present ing towards them, I just think are spread across Poland’s in the EU’s Natura 2000 net- legislation, and this is some- that by educating our citizens large area, and therefore to work of protected areas. thing we are currently doing. about the problems of protect- send the energy beyond the Poland has outstanding A new bill for dealing with the ing the environment, they local area, [modern] transmis- areas of unspoiled nature disposal of trash is getting its force us to address such impor- sion lines are needed. In and the National Park in second reading in the Sejm. tant matters in our policy. Cur- Poland there is a shortage of Bia∏owie˝a, with its flora and The bill would make local gov- rently, many of our actions in these, and our whole transmis- fauna, is unique in Europe. I ernments responsible for dis- that field [of environmental sion system is outdated and in want to increase the present posing of garbage, which protection] are pressed on us need of modernization. area of that park and spread means undertaking a task by the European Union, and I So those technical obsta- the protection over nature which is currently carried out would like to see the pressure cles, the higher costs of pro- and animals living there by by private firms. These firms for better protection of the ducing electricity from envi- 10,000 hectares. are only concerned about easy environment come from our ronmentally friendly sources I also want to create some profits, and dump trash wher- society and political parties. and the shortage of investment new national parks. We are ever it’s easiest for them, often capital for such ventures has lucky to find areas with in inappropriate places. All There are many ad hoc citi- resulted in a situation where unspoiled nature, where one the while, people pay them zens’ groups who block some the amount of energy received can see all kinds of birds and quite a lot for this service. public investments due to from such sources is still small. animals and breathe fresh [When the new bill comes into their own private interests. In But the government is put- air, so close to big cities like effect,] people will pay a mod- Warsaw there are over 50 ting a lot of effort into speed- Warsaw. People living in big est fee to local governments such groups. What is your ing up the development of cities that are located in and will have some control reaction to this phenomenon? green energy. We issue green heavily industrialized areas over it. I hope this will change Legislation on access to infor-

certificates and provide finan- in Western countries have to the present situation. mation about the environmen- OF THE MINISTRY ENVIRONMENT COURTESY cial support from the National drive a long way to the moun- tal impact assessment of an Minister Kraszewski believes EU climate change Fund for Environmental Pro- tains or the sea to enjoy The Green Party of Poland investment allows every citizen policy will create both opportunities and challenges tection and Water Manage- nature. (Partia Zielona 2004) is often to organize public protests. I for Poland ment for investors. And pro- Yet we still have a lot to criticized by road builders look at this as an element of ducers of such energy and the do to raise social understand- and local communities for democracy, and I can tell you people about the necessity or way for building a road. number of private entrepre- ing and sensitivity towards obstructing construction. How that in Denmark I saw the furi- benefits of a given invest- But recently I have seen a neurs willing to build wind- protecting the environment; do you view them? ous action of a few people pro- ment. I get the impression growing number of examples mills, for example, is growing, to make sure people respect I like the Greens and consider tecting a tiny piece of grass in that many investors neglect of the fact that in the process and some of them are making all the laws meant to protect them my allies, because in fact the city from using it for a these discussions, and some- of modernizing our infra- handsome profits. green areas in the cities, we want the same thing: better small private investment. So times local governments fail structure we are taking better water in the lakes and protection of the environment, such ad hoc protests are not to convince the individuals care of the environment, as How do you assess the general streams, nature in the moun- and harmonizing this with specific to Poland. that they will receive the well as respecting the social state of environmental protec- tains, as well as the smallest development of the country Generally I think that proper compensation for a environment more, because tion in Poland ? forests and meadows around and important investments. I planners and investors in piece of land or a house that these are closely linked in a It is much better than it was villages. wish the Greens all the best Poland should talk more to must be demolished to make democratic country. ●

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OFEs Pension reform law comes into effect

But economists and changes were nothing more lawsuit against the government politicians are still than some creative accounting for “lost gains as a result of the fighting it by the government to shore up changes in the pension system.” its budget deficit. They argue it Even the constitutionality of The government’s controver- is wrongheaded to throw more the law has been questioned. sial pension reform plan, money at Poland’s inefficient Jerzy St´pien, former head of which slashes the percentage public system, while handicap- the Constitutional Tribunal, of workers’ salaries going to ping the funds that fueled said if he was still head of the private pension funds (OFEs) investment in the Warsaw court, he would question the from 7.3 to 2.3 percent, Stock Exchange. constitutionality of the reform became law on May 1. OFEs The critics include several in its most important points. will start receiving the reduced respected economists, most Employer organizations amounts from June. notably Leszek Balcerowicz, and opposition parties have The changes mean that the the former finance minister vowed to raise this issue with state-controlled social security and National Bank of Poland the Tribunal. and pension fund, ZUS, will head. Mr Balcerowicz said The limit at which OFEs now receive 17.22 percent of the reform would “reduce can invest in equity has also workers’ salaries, a five per- economic growth in Poland been changed. Currently, the cent increase on the previous as well as future pensions.” limit stands at 40 percent but amount of 12.2 percent. Krzysztof Rybiƒski, a former will rise incrementally each By 2017, the amount OFEs vice president of the NBP, has year, to 62 percent by 2020 and

receive will rise to 3.5 percent. gone even further and is collect- then to 90 percent by 2034. REPORTER Critics have said the ing signatures for a class-action Remi Adekoya Former NBP president Leszek Balcerowicz has long opposed the new law

Seaports Seaport operators reveal z∏.1 billion in development plans

The level of cargo Gdynia, the two largest sea- Macquarie Group. the time it takes to handle handled by Polish Making waves ports in Poland, handled a DCT handled 500,000 con- goods and to increase capacity, The structure of cargo turnover by Polish seaports in 2010 (in %) ports reached record combined 65.1 percent of all tainers last year, and company which currently stands at highs last year cargo that came in and out of president Boris Wenzel told 750,000 containers. 0.4 Polish ports. Rzeczpospolita this will rise to “The new investments will 3.1 Companies managing termi- To meet the expectations of 750,000 this year, before jump- allow us to handle 1.2 million Gdańsk nals in the ports of Gdaƒsk customers who want to use ing to one million in 2012. containers in 2020,” BCT pres- 18.0 and Gdynia plan to spend Polish ports to deliver goods To achieve this, a total of ident Krzysztof Szymborski Gdynia approximately z∏.1 billion on not only to the Polish market z∏.100 million will be spent on told the newspaper. expansion to cope with but also to Russia, the Czech building new infrastructure, Mr Wenzel said that both Szczecin demand and close the gap on Republic and Slovakia, termi- including shore cranes. DCT Gdaƒsk and BCT Gdy- 13.4 44.4 regional rivals. nal operators in both cities are “We also plan to expand nia complement one another Świnoujście Cargo turnover at Polish planning large-scale develop- [and] include a new cargo load- and should work together on seaports reached record lev- ment projects. ing area, which will cost a common strategy to com- 20.7 Police els last year. Some 59.5 mil- The biggest amount – around z∏.800 million,” he said. pete with rival ports in north- lion metric tons were handled about z∏.900 million – will be The Baltic Container Ter- ern Europe, such as Ham- Others in total – an increase of 32 spent by deep-sea container minal Gdynia (BCT Gdynia), burg. percent on the year, accord- port DCT Gdaƒsk on enlarg- owned by Phillipines-based Gareth Price Source: Central Statistical Office ing to Poland’s Central Statis- ing its handling capacity. The International Container Ter- tical Office. company is majority owned by minal Services, plans to spend Last year, Gdaƒsk and funds managed by Australia’s about z∏.132 million to reduce Poland’s draft 2012 budget Legal News foresees smaller deficit

Contact: Finance Minister Jacek Ros- for the presentation of the GDP growth accelerates. Lech Gniady towski last week presented the plan, said the 2012 budget Projections assume a GDP [email protected] Polish government’s draft would be one which reflected a growth rate of four percent for budget for 2012, aimed at cut- “difficult, crisis period,” but next year and an inflation rate New forms for entrepreneurs icant improvement in cooperation between ting the budget deficit below that it would protect “ordinary of 2.8 percent. The ministry European Union limits next people.” expects unemployment to Official forms for registering entities and the Polish judiciary and EU institutions. year. The government is expect- remain at 10 percent by the updating their data in tax and statistical This improvement is to be achieved by The draft budget forecasts ing z∏.292.7 billion in revenues, end of 2012. offices are to be replaced. The current indicating a single authority in Poland that a deficit of z∏.35 billion in 2012. and forecasts state spending at Next year’s budget will be documents, which have so far been used will grant enforcement clauses to deci- This year, a deficit of z∏.327.7 billion. Mr Tusk’s gov- the first to implement a salary to register commercial companies and to sions issued by the European Council, z∏.40.2 billion is expected. ernment predicts its revenues freeze for all public sector update their data in tax offices, may only Commission, ECB, Office for the Harmo- Prime Minister Donald from both direct and indirect workers, excluding teachers. be used until the end of June. nization in the Internal Market, as well as Tusk, who was in attendance taxes will rise next year as RA Companies which intend to be regis- the Tribunal of Justice of the European tered as VAT payers or to have their data Union, in matters concerning the commu- updated may already use the new forms. nity’s trademark and designs. However, those forms which are con- Enforcement clauses are currently grant- Poland’s PMI drops unexpectedly cerned with VAT registration and VAT ed by district courts relevant for the general updates will be in use until the end of 2011. matters of the debtor. The appointment of a single authority will lead to increased effi- Poland’s Purchasing Managers the PMI is still near its highest ter GDP growth should stay Improved cooperation ciency as well as facilitating enhanced com- Index (PMI) for the manufac- level in four years and shows flat as compared to Q4 2010, between the judiciary and EU munication with EU authorities. turing sector dropped to 54.4 in output is supported by further at 4.4 percent y/y. institutions The act was passed on to the presi- April from 54.8 in March, while increases in both domestic and Although Citi expects GDP Planned amendments to the law on the dent and the marshal of the Senate on the market consensus was 55.0. export orders. growth may slow down to 3.7 structure of civilian courts stipulate a signif- April 15. ● Despite the drop, PMI is The high PMI, a leading percent y/y in Q2, its forecast still high and supports the view indicator of economic growth, for the whole year points to that the economy will continue suggests GDP growth should GDP growth acceleration to BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE to recover this year, Citibank stay high this year, the bank 4.2 percent y/y from 3.8 per- said. According to its analysts, said. Citi estimates first quar- cent in 2010. AK MAY 9-15, 2011 OPINION & ANALYSIS www.wbj.pl 11 Poland grows up Joanna Wóycicka

hen the killing of Osama bin pedic defects and that they had A WikiLeaks cable released The Polish army has changed Laden was announced, all serious psychological problems. in December showed that, in beyond all recognition – conscrip- WPoles were Americans. However, after September “Given their ‘special the end, while a battery of tion has ended, and Poland now has Although it sounds paradoxical, these 11, 2001, Poles felt tremendous Patriot missiles was deployed in an all-volunteer army. In the army a 10 years of hunting for the terrorist solidarity with the American Poland, it was not furnished civilizational and social leap for- were for Poland, and the Polish army people, and understood that relationship’ with the with live missiles, and there ward is taking place – more women above all, a period of being forced to they now had their own historic were no plans to ever make the are studying at military academies mature quickly. Poland has now mission. Experts made assur- US, could Poles have thing operable. and more young women are volun- grown up. It is therefore time to think ances that joining the anti-ter- Given the “special relation- teering for the National Reserve about our place in the adult world. rorist coalition would ensure felt betrayed, ship” Poles thought they were Forces. Poland international prestige at developing with the US, could Last week, on the occasion of the 10 years ago the side of the United States and humiliated and they have felt betrayed, humili- 220th anniversary of Poland’s adop- When, following the attack on the that Washington – at any ated and rejected? Even if you tion of its May 3rd Constitution (the World Trade Center, then-Polish moment – would finally trust rejected?” think the answer is yes, it first modern codified constitution in President Aleksander KwaÊniewski Polish citizens enough that it turned out to be to Poland’s Europe and the second in the world, announced a three-day period of would lift the visa requirement benefit. after the United States’), US Presi- national mourning, Poland was not to the US. Moreover, they dent Barack Obama and Secretary of yet an EU member. vowed, Poles could count on lucrative to the EU in 2004. Congratulations from the State Hilary Clinton congratulated Poland still had lots of reasons to contracts in Iraq after military opera- In the meantime, Spanish troops – White House the Polish nation shoulder to shoul- envy the Western world – it was in the tions had ended. who, along with all other Spanish cit- Just 10 years after the attack on the der … nice. midst of a terrible economic situa- izens, could travel to the US visa-free World Trade Center, Poland is quite Perhaps it is worth thanking the tion, had high unemployment and an Love and betrayal – calmly abandoned their bases in a different country. From a backward US for how well we have grown up – army that was was totally disorgan- Unfortunately, after 2001 it proved to Iraq after Jose Zapatero came to country bumpkin it has been trans- without its protective support. ● ized. In its higher echelons the tone be the case that Poles’ love for their power. formed into the most significant was set by post-communist senior Uncle Sam was unrequited. While Poland did not receive any lucra- political actor in Central Europe. Joanna Wóycicka is the former head officers who, despite intensive train- Polish soldiers were gallantly sup- tive Iraqi contracts, and three years Our politicians have begun to set of the foreign sections of the ˚ycie ing in NATO, were more fluent in the porting the Americans in Iraq and ago the foreign minister, Rados∏aw the tone in the salons of Brussels – the Warszawy and ˚ycie newspapers language of Pushkin than in that of Afghanistan, Polish citizens still had Sikorski, did just about everything he European Parliament is competently and the former head of the foreign Shakespeare. Young men fled from to undergo complicated visa issuing could to convince the Americans to managed by its president, Jerzy Buzek, department at the Polish Press the draft in droves, assuring the procedures. The visa regime was not install at least part of their anti-mis- a Euro MP from Civic Platform (PO), Agency (PAP). j.woycicka@hot- authorities that their feet had ortho- relaxed even after Poland’s accession sile shield in Poland. Poland’s ruling political party. mail.com Two tales of European disharmony

wo events in Europe last Wed- The two events share one com- Beyond economics related crime from Mexico, they do have been closely cooperating for nesday were worthy of atten- mon trait: a trend toward dissolution The issue goes beyond economics and so to the US federal government, more than a year on this issue, pre- Ttion amid the continued global of European unity on a number of free movement of labor. It also comes which is in charge of borders. And cisely because there is no EU consen- focus on the Middle East. The Euro- fronts. In the case of the Schengen down to trust. Do the French trust the no state neighboring Texas or Ari- sus on how to deal with Russia. pean Commission drafted a propos- area, the move toward reintroduction Italians or the Romanians to compe- zona can put up physical or legal New Central and Eastern Euro- of borders, no matter how limited, is tently guard their borders? Paris and impediments to the movement of a step back on one of the most sym- Rome had a spat recently when the people from border states into the bolic accomplishments in Europe in Italian government said it would issue interior of the United States. “The move toward the past 20 years. temporary Italian residence permits For Europe, this problem goes “Germany and France The Swedish-Polish strategic (which effectively allow for residency beyond dealing with an influx of ille- reintroduction of borders agreement, meanwhile, puts on paper in the entire European Union) to asy- gal immigrants. It ties in directly with have no problem selling is a step back on one of a budding regional alliance that is in lum seekers escaping the chaos in the question of how to fix debt-laden fact just one of many instances of the North Africa. These permits, which peripheral economies and how to Moscow advanced the most symbolic dissolution of a coherent European would allow their holders to cross the regulate Europe’s banking systems weaponry with which to security and foreign policy. border into France, were a form of across state lines. accomplishments in STRATFOR has already ad- protest against the lack of help from threaten Central Europe in the past 20 dressed the Schengen treaty’s sym- European allies in dealing with the Dealing with Russia European states” bolic value in reinforcing the free influx of migrants. Lack of a coherent, centralized Euro- years” movement of labor in continental Paris countered the move with pean policymaking body is also felt in Europe. Ireland is the only euro zone border controls. The story ended in a the realm of security and foreign pol- pean member states are afraid of Rus- al for a set of new rules to govern the country not in the Schengen area. joint Franco-Italian proposal to the icy. The Common Foreign and Secu- sia. Sweden does not want Moscow in European border-free zone – the 25- The area facilitates the European commission to amend the Schengen rity Policy (CFSP) has proven incon- the Baltics (which Stockholm consid- country Schengen area. The draft Union’s rules on free movement of rules. sequential in Libya. ers its own sphere of influence). But proposes to reintroduce temporary labor, which is one of the central con- Aside from the symbolic impact of The CFSP is also failing to deal Germany and France have no problem borders between Schengen states ditions for an effective currency Europeans rolling back parts of their with Russian resurgence in its sphere doing business with Russia, including “under very exceptional circum- union. Erosion of the feasibility of most treasured instances of unity, the of influence, which to most EU mem- selling Moscow advanced weaponry stances,” which the commission will free movement of labor across issue points to the very core of what ber states is far more important than with which to threaten the aforemen- approve on a case-by-case basis. Europe, by way of a renewed imposi- ails Europe at the moment: lack of an the conflict in Libya. tioned Central European states. ● Also on Wednesday, Sweden and tion of borders, is therefore a symbol- EU-wide resolution mechanism. The Swedish-Polish strategic part- Poland signed a partnership agree- ic reminder that despite the guaran- When American border states nership is ultimately about Russia This edited version of “Two tales of ment in Warsaw on issues of mutual tee of the treaty, Europe still does not complain that they can’t stem the and about joining forces to counter European disharmony” is reprinted strategic importance. have a unified labor market. tide of illegal immigrants and drug- its resurgence. Sweden and Poland with permission of STRATFOR

Unless otherwise noted, the opinions here are those of Warsaw Business Journal. Readers’ 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.

PUBLISHER: VALKEA MEDIA SA EDITOR-IN-CHIEF ANDREW KURETH ([email protected]) MANAGING DIRECTOR MONIKA STAWICKA

DEPUTY EDITOR POLITICS EDITOR CONTRIBUTORS PRODUCTION MANAGER MARKETING &SALES MAGDALENA KARPI¡SKA PRINT & DISTRIBUTION COORDINATOR E. BLAKE BERRY EWA BONIECKA PIOTR WYSKOK ([email protected]) KRZYSZTOF WILI¡SKI REMI ADEKOYA AGNIESZKA BREJWO ([email protected]) ([email protected]) ANTHONY CASEY ([email protected]) RICHARD WERNICK MARKETING &SALES DIRECTOR MA¸GORZATA ANCZEWSKA ([email protected]) ONLINE & NEWS EDITOR INTERNATIONAL EDITOR JOANNA WÓYCICKA ([email protected]) GARETH PRICE GRAPHIC DESIGNER ALICE TRUDELLE ¸UKASZ MAZUREK PR & MARKETING MANAGER BOOK OF LISTS SPECIALIST ([email protected]) ([email protected]) NATALIA ROGACZEWSKA JOANNA RASZKA COLUMNISTS KATARZYNA PINKIEWICZ ([email protected]) ([email protected]) PAUL FOGO ([email protected]) REAL ESTATE EDITOR JUDITH GLINIECKI SUBSCRIPTIONS MANAGER ADAM ZDRODOWSKI INTERN TOMASZ JERZYK CARTOONS JOWITA MALICH AGNIESZKA MICHALIK ([email protected]) KATARZYNA PIASECKA KAMIL CISOWSKI PIOTR WYSKOK ([email protected]) ([email protected])

EBAN’s president makes IT company Polidea has a case for more women made it big, thanks to angel investors two Polish angels 14-15 19 ANGEL INVESTING IN POLAND

Warsaw Business Journal’s special supplement on business angels • MAY 9-15, 2011

Awareness and opportunity Angel investors take wing in Poland Awareness of angel investing remains low al or international networks in angels, is estimated at three business angels established the United States and and obstacles abound, the country at present, along million. In the second half of under the auspices of the Western Europe, Polish busi- with several independent 2009 there were 303 angel European Commission: Busi- ness angels invest in sectors but it is nevertheless initiatives, and the largest investor networks in the Euro- ness Angel Seedfund, Polish which give the best possibili- growing in popularity include PolBAN and pean Union. Investment Fund, AMBER ties for innovation: biotech- in Poland Lewiatan Business “The Polish market of busi- BAN – Polish Entrepreneurs nology, multimedia, internet, Angels (LBA), both in ness angels is developing Foundation, Lewiatan Busi- electronics, medicine, services Google. Amazon. Facebook. Warsaw. dynamically. We are seeing an ness Angels and Secus and ecology, but they also sup- All are modern success stories The average increased awareness among Wsparcie Biznesu. port traditional ventures. and billion-dollar businesses. membership among investors and authors of proj- For its part, the ¸ódê The oldest among them, Ama- these Polish net- ects,” said Adrian Fester, a Regional Development Successful investments zon, has only been around for works is 30 in- project specialist at PolBAN. Agency has formed the Guild and angels 17 years. These companies, vestors. Meanwhile, of Business Angels (GAB), an The aforementioned W and others like them, have the number of initiative which matches inno- Biegu Café is an example of much in common, such as angel investors in vative ideas for business a successful angel investment market dominance, a depend- the United or companies in in Poland. The chain dates ence on the internet, and plen- States, the the early back to 2005, when its ty of fancy algorithms. most founder Maciej Adamaszek And none of these firms invested z∏.400,000 in would exist today if they had two coffee points in not gotten a lift from an angel SHUTTERSTOCK Warsaw and Kraków. investor. To expand his busi- ness, Mr Adamaszek A fledgling sector turned to banks, but Although it has not seen any- after several fruitless thing quite as spectacular, attempts to get support, Poland too is home to angel- business an- he presented his project to supported success stories. gels). stages the Lewiatan Business Health-food retailer Organic Angel investing isn’t of development with Angels network. The project Farma Zdrowia, coffee shop quite as well known or Currently, five networks of their own business angels. attracted the interest of Piotr chain W Biegu Café and book understood in Poland as it is Polish angel investors are GAB also organizes confer- PoÊnik, a private investor retailer Merlin.pl are all exam- in the United States, for exam- members of the European ences and training for small and co-founder of Wittchen, ples of businesses that have ple, but the infrastructure to Business Angels Network firms and start-ups in ¸ódê, a producer of leather acces- succeeded with the help of facilitate it is developing. (EBAN), an independent and Warsaw and Gdaƒsk. sories. angel investors (also known as There are at least eight region- mature market for business non-profit association for Like their counterparts in Continued on p. 17 ➡

Interview A wealth of experience

Bill Payne, a US entrepreneur and angel Working as an entrepreneur-in- investor, talks to WBJ about his experiences as residence with the Kauffman an angel investor and his perceptions of the Foundation in Kansas City, I Polish market started running seminars giving guidance to people interested in Gareth Price: How did you it brings to the economy. I want- becoming angel investors. come to be an angel investor? ed to be engaged in the commu- Over about 10 years I’ve Bill Payne: I’m trained as an nity and the best way to do that held 100 workshops in seven or engineer – immediately after was by financing and mentoring eight countries, working with leaving college I worked in that new start-ups. I made my first some extremely smart and very profession before helping to investment in 1980 and have enthusiastic businesspeople. start a small hi-tech materials now made more than 50. science company in 1971. I grew Some 12 years ago my pas- Angels reject the majority of that business for about 11 years, sion changed – I discovered projects they receive. On what before selling it to DuPont in there was a real gap in the edu- basis do they choose to invest?

1982. Having operated a firm cation available for accredited We always bet on the jockey OF LBA COURTESY for so long, I was intrigued by investors, meaning wealthy peo- and not the horse. Bill Payne says the global crisis has affected the value of angel financing, but not entrepreneurship and the value ple who want to help start-ups. Continued on p. 15 ➡ the number of ventures funded

In this EBAN Congress Organizers: EBAN Congress Partners: supplement

Angel investing in Poland ...... 13, 17 Bill Payne interview ...... 13, 15 Women business angels ...... 14-15 Angel investing and innovation ...... 16 Jacek Błoński interview ...... 17 Lewiathan Business Angels network . . .19 Polidea case study ...... 19 Venture capital firms ...... 20 WARSAW 14 www.wbj.pl ANGEL INVESTING IN POLAND MAY 9-15, 2011

Women and business In need of more diversity Selected statistics on women’s participation in business and business angel investing in Europe

Women as entrepreneurs in Europe 40% Women with wings Women as board members in Europe 11.5% Women as a proportion of total BAN membership, 2009 4.86%

One of Europe’s “[She] is a driving force ing,” in which the organiza- believes that once the target Women as a proportion of new BAN members, 2009 6.86% leading angel investors for increasing participation tion committed to increasing is achieved, there will be a Proportion of BANs that report no women members, 2009 28.76% of women in angel investors the overall number of angel self-sustaining number of is encouraging more Proportion of BANs that report that fewer than 10% of members are women 80% women to follow in her networks,” said Anna Hejka, investors who are women in women investors. footsteps founder and managing direc- its ranks from just five per- “Like for any diversity ini- Source: EBAN tor of investment banking cent to 20 percent by 2015. tiative, you really have to cre- firm Hejka Capital Markets “I feel 100 percent con- ate a critical mass of like- Ms Hejka. “A single person, huge impact on consumer Still very few woman are found Group, and an angel investor vinced that this is achiev- minded investors to start see- even a genius, generally loses spending, including in areas among the ranks of angel herself. able,” said an upbeat Ms ing a change,” said Ms Bau- to a well-diversified group of like electronics, computers investors in Europe, but Euro- It is under Ms Baumann’s Baumann. “My personal tar- mann. “If we achieve less people with different profes- and cars. pean Business Angels Net- leadership that EBAN get was 30 percent, but peo- than this, we might feel that sional skills,” she added. “So if you run a company work (EBAN) president recently adopted a white ple thought that was too we have done all the work The numbers indicate and you don’t take women’s Brigitte Baumann wants to paper called “Women and aggressive,” she added. and get none of the benefits.” she’s right. A report by non- points of view into account in shake things up. European Early Stage Invest- Why 20 percent? EBAN profit research and advisory your business strategy, you A question of skills group Catalyst found that the are losing an incredibly large Profile: Brigitte Baumann Ms Hejka admitted that she top quartile of Fortune 500 target group,” said Ms has never wanted to “divide companies with the highest Hejka. An easy way to the world between men and average percentage of achieve this, she added, is to Brigitte Baumann has worked looked forward to the most each month was women,” and became women board directors had a involve women in all stages to commercialize new tech- the women angel network in France that I involved in the issue of 66 percent higher return on of business decisions. nologies for 20 years. She helped create. I wanted an environment where women angel investors rela- invested capital than the bot- According to Ms Bau- became an angel investor in senior investors taught, and where I could tively late in her career. Nei- tom quartile. mann, an increased propor- 2003, and after three years of invest with others. While that was done in other ther of the two women have tion of female angel investors experiencing some frustration with the func- networks, it was not formal, and at Go Beyond had stereotypically feminine A woman’s point of view could also expand the types of tioning of the networks in which she was we really formalized this. I also didn’t want to career paths, Ms Hejka Women are an obvious de- investments that these net- involved, decided to create a new kind of focus only on technology, and I realized that the evolving in the world of mographic target for Euro- works fund. More than a few angel investor community and service com- kind of deals I saw in the women’s network finance and Ms Baumann in pean angel investor networks famous angel-funded start- pany, Go Beyond. were really interesting, but I didn’t want to be that of technology. (See that look to expand. But both ups are in the field of technol- “I have worked in technology all my life. I doing only those either. So that’s why I created accompanying profiles.) Ms Baumann and Ms Hejka ogy (think Google or Face- was always with men, but for some reason Go Beyond, where we mix both.” For both, the issue of agree that, in addition to the book), and this probably has when I became a angel investor I though great, Ms Baumann is president of the board of engaging more women in capital they can bring, women something to do with the pro- I can also do this to have fun and therefore I’d EBAN, the European trade association for angel investor networks is investors also possess specific file of the current angel- like to be with people I can relate to. And while I Business Angels and Seed Funds, and chairs primarily one of diversity. business skills and expertise. investor base – typically can relate to men quite well, out of the six angel the Young Presidents Organization’s global “Diversity in general leads For one thing, it is retired male entrepreneurs investor groups I joined, the network meeting I angel investing interest group. ● to much better results when increasingly recognized that over 55 – according to EBAN. managing a business,” said women’s decisions have a There are other reasons: MAY 9-15, 2011 ANGEL INVESTING IN POLAND www.wbj.pl 15

Profile: Anna Hejka investors in their markets. But, she added, “certainly to be able to be good angel According to EBAN, France a prerequisite is that there investors,” Ms Hejka agreed. and Poland show the highest needs to be a strong commu- And more than money, After working with JP Morgan the US and Poland in a variety of sectors numbers. In both countries, nity of professional or women she continued, what start ups Chase in Madrid and Salomon such as commercial banking, financial advi- almost a third of angel entrepreneurs and I think need is the experience, the Brothers in New York, Anna sory, fund management, investment bank- investors are women. that is the case in Poland.” instinct that one develops Hejka decided to go back to ing, food & beverage production and distri- While France created “One of the reasons why we from being a serial entrepre- Poland when the communist bution, IT and real estate leasing, among women-only angel investor have so many angel investors neur, the ability to coach, regime fell. “I decided to start my own com- others. They employ from a few up to networks, in Poland the net- in Poland is because women and to get in touch with pany because nobody else was interested approximately 300 people and have works made all sorts of indi- have been running their own potential clients or investors. in the financial industry,” she said. “They turnover from a few million z∏oty to a few viduals feel welcome, includ- businesses quite successfully, It seems then, that Polish told me it would take two generations hundred million. Many have been sold to ing women, from the begin- have made money, have the start-ups are in luck. before we could even understand what net- strategic investors such as Unilever or ning, said Ms Baumann. skills, experience and contacts Alice Trudelle working was all about,” she remembers. Nordea, and some were listed on the WSE. “My response was that networking was the She regularly speaks for angel investors, only way to acquire anything under com- entrepreneurs and scientists on how to munism, because there was nothing in the commercialize ideas, build companies, stores. We had been extremely well pre- avoid or prepare for risks and successfully pared for the changes.” exit. She also participates in similar presen- As an angel investor, Anna Hejka has tations and coaching for early stage com- worked with early stage companies both in panies that come to Lewiatan. ● many countries provide more the same field where you zation of investors, of which support to technology start made money.” women are a segment, but ups than other kinds, and the Many women entrepre- there are also more and more economic model of technolo- neurs who have built success- investors from different gy firms fits well with that of ful service companies, devel- industries,” said Ms Bau- venture capitalists, explained oped a brand, or products for mann. Ms Baumann. But mostly, families and kids, now feel “technology is where a lot of comfortable reinvesting in Poles apart entrepreneurs who are now that area. Different European coun- investors made money, and “We are therefore wit- tries vary significantly in their

you often start investing in nessing a certain democrati- proportions of women angel SHUTTERSTOCK A little bit of history Poland has more women angel investors than most Western lived through uprisings, wars and revolutions. The men were forced by the historical circumstances. Historian Norman European countries, despite the fact that it is rarely acclaimed killed, imprisoned, sent to Siberia, etc. With men missing, the Davies for example has said that Polish women are the biggest for any pro-women stances or policies. Why is that? According key reason why Poland still exists is because women took over. asset of this country.” to Anna Hejka, it has a lot to do with the country’s history. Over They had to. They were the ones who managed factories, agri- And this, according to Ms Hejka, is the historical background the last 300-350 years, Poles have been forced to fight to pre- cultural land, and who kept Polish education alive. This has cre- for the strong position of women in business in Poland, despite serve their identity, she explained. ated a situation in which women have become much more the fact that there is little promotion of women’s issues on an “We have been partitioned, were forbidden to speak Polish, entrepreneurial, quicker than in other countries. They were institutional level. A wealth of experience

➡ Continued from p. 13 Finally, the company must sometimes decide to “go back side of throwing good money For the last three years it You have visited Poland before This means we look at the man- know how to sell. It needs to to school.” This doesn’t neces- after bad – we angel investors has been harder to get angel to share your knowledge of agement team and its entrepre- test the product on customers sarily mean taking college are very optimistic and enthu- investors to open their wallets angel investing. What are neurial experience. We don’t so we can talk with those cus- classes again, but it does mean siastic. and write checks. The number your impressions of the Polish back farmers to build IT com- tomers. Also, it’s important digging into new fields like I have become more ruth- of companies being invested in market and would you consid- panies and we don’t back IT they know their position in the medical and life sciences. less in objectively standing has, surprisingly, remained er investing here? specialists to run farms. The market and who their main back. I have to ask: did this teams we choose must be competition is. What have been your biggest team meet its milestones? coachable, they must have successes as an angel integrity and be seeking to How important is it that an investor? What is the success rate for make money. Above all, they angel investor has sector I made three investments investments? “We always bet on the need business experience. knowledge? which yielded 30 times the Two studies – one in the US The firms themselves must I always advise new angel money back. I like to use a and one in the UK – show that also be able to grow rapidly – I investors to stick close to their gambling analogy: if you put half of investments die, mean- jockey and not can’t invest $1 million in a start- skills and experiences. But as $1,000 on a blackjack table ing no return is made on capi- up if its revenues will be $2-3 one matures one can either and win it all back you’re then tal. Angels’ returns come from million in the fifth year. Com- continue to focus on the same playing with “house money.” a small fraction of invest- the horse” panies must have scalability. sector or branch out into new That is the objective of most ments. Fewer than 10 percent Another key point is that the areas. business angels. of deals provide more than 75 about the same, but the overall Some 18 months ago I was on product has to be a “must have” Through angel groups we I’ve been playing with house percent of the return on value of these investments is the floor of the Warsaw Stock and not a “nice-to-have.” It begin to trust the judgment of money for over 20 years. I’ve investment. down by about 30 percent in Exchange giving a speech must also have competitive dif- others with different experi- had three big home runs, but What we should interpret the US. about investing. Then, I ferentiation which is protected ences. But us angel investors, they haven’t necessarily been from these highly skewed It is strange that invest- could see, the Polish business by intellectual property rights or we’re also curious, and the with whiz-bang tech compa- results is: you must spread ment amounts have de- angels market was growing in by trade secrets which preclude older guys in particular get nies. capital across many invest- creased but the spread has sophistication. I expect by the competition from copying it. bored in their sector and The biggest return I had ments and the scale potential remained the same. We think now this trend has only was on a staffing company for must be 20 times the original one of the main reasons for strengthened. I also found Bill Payne doctors, but I also did well in investment – that means no this is that it is now much the Lewiatan Business an internet firm before making investing in restaurants. cheaper to start a company. Angels network to be very Bill Payne is an American entrepreneur, business executive a nice exit during the internet Software – which accounts well-organized and that and angel investor. He was awarded degrees in material bubble. How has the economic crisis for one-third of angel-funded Poland has some excellent engineering in the 1960s from the University of Illinois. affected angels’ willingness to startup companies– is today software engineers. He co-founded Solid State Dielectrics in 1971, before When do you decide that an open their wallets and invest? 10 percent of the cost of 10 As for investing in Poland, selling the company to DuPont in 1982. investment is failing and not You have to remember we’re years ago. we angels tend to invest close Mr Payne received the Hans Severiens Award for US to invest more money? investing our own money and, Improvements in the out- to home – we’ve traveled mil- angel investor of the year in 2009. He has invested in more The decision not to invest any whether you’re male or sourcing market as well as an lions of miles in our lifetimes than 50 companies and now shares his knowledge and more money into a company female, you have spouses at increase in the use of open and are not interested in trav- insights into angel investing at seminars and conferences is the hardest decision an home to support. I personally source code has made it eling so much any more. Most across the globe. ● angel has to make. As a try to spend 10 percent of my cheaper to start software com- of us feel the same way. group, we probably err on the net worth on investments. panies. Gareth Price 16 www.wbj.pl ANGEL INVESTING IN POLAND MAY 9-15, 2011

Innovation Angels to spur innovation?

Poland lags behind in innovation, but angel spurring innovation. For ex- of early stage players; incuba- favor of innovation. Funds deciding whether or not to investors could be instrumental in changing ample, until now professors tors are being created. In the coming into Poland from the invest in a project? the situation have not been allowed to [hold past we just had several big European Union help too, equity in] spin-offs, which is private equity firms in Poland since there are specific monies Criteria required Though Poland’s population is up for the government’s short- normal in the United States.” which were only interested in dedicated to innovative proj- Like all investors, business highly educated and strongly comings. But how can young “But the environment is big deals,” he added. ects. So what is the most angels consider the viability of entrepreneurial, it has strug- entrepreneurs with innovative slowly being created right now. The atmosphere therefore important criteria that angel the end product in the market, gled to push innovation to the ideas and no capital get start- There is an increasing number does seem to be changing in investors consider before its chances of survival and bar- fore. ed? One way is to seek support riers to its entry. But they also In its recently published from venture capital firms, but take several other factors into “Europe 2020 Poland” report, such companies are often account. the World Bank decried Polish interested in big projects and “First of all, the quality of public spending on research firms that are already estab- the team is very important. Do and development, at 0.6 per- lished. That’s where angel they have credentials that cent of GDP, as not only low, investors come in. show they can deliver results but also inefficient. The report Angel investors put almost and that they have potential?” also stated that “failure to 70 percent of their investments said Mr B∏oƒski. increase technology absorp- into projects involving infor- “Also, the project itself tion could cause a potential mation and communications should have potential for decline in [Polish] GDP technology (ICT) – internet, future growth and not just growth.” telecoms and other hi-tech for a small target market. I Poland ranked a distant spheres requiring innovation – for example, am not interest- 22nd in an economic innova- according to statistics from the ed in products that would tion ranking published by the European Business Angels only target the Polish market, European Union in February. Network (EBAN). but in products with global Only Lithuania, Bulgaria, That equals good news for potential.” Latvia, Romania and Slovenia potential hi-tech start-ups. “An excellent example is fared worse. Poland invests lit- “Up till now, there has mobile applications. Today, a tle in R&D compared to some been a problem in the whole group of young people in a other member states, and its [investment] eco-system, so to Polish village could create a companies invest the least in speak,” said Jacek B∏oƒski, new application, and tomor- the development of new prod- head of Lewiatan Business row it appears in Apple stores ucts, the report said. Angels. “[There has been] a all over the world.” problem with the financing of And with the help of angel Angels needed innovative projects, but also investors, that scenario is more It seems therefore that it is up with the legal environment, likely than ever to happen.

to the private sector to make which is not conducive to SHUTTERSTOCK Remi Adekoya MAY 9-15, 2011 ANGEL INVESTING IN POLAND www.wbj.pl 17

Where the angels go Who goes to the angels? Business angels’ preferred investment sectors Angel Groups which send their projects to angel investors

Internet 1% investors take IT, software Media, multimedia 14% Remaining students Telecommunications wing in Poland Ecology, protection of environment PhD students Biotechnology, pharmaceuticals 10% Remaining scientists ➡ Continued from p. 13 from z∏.100,000 to a Knowledge-based services He invested z∏.1.5 million in maximum of z∏.1-2 Health care 49% Scientists under 35 years old exchange for a 50 percent stake million. In Western Computers Unexperienced enterpreneurs in W Biegu Café. As a result, Europe, mean- 14% Automation, robotics the chain has so far expanded while, the average Experienced enterpreneurs Chemicals to 16 coffee shops in seven Pol- amount of money 12% ish cities. put into each Food Another example of a ven- investment general- Fuel/energy ture supported by a Polish ly ranges from %20406080100 angel investor is online book €20,000 to shop Merlin.pl, which was €250,000, although Source: K.B. Matusiak (red.), “OÊrodki innowacji i przedsi´biorczoÊci w Polsce”, Raport 2010, SOOIPP/PARP, Warsaw 2010 founded in 1999 by Zbigniew some sources sug- Sykulski. When the company gest it could even be as high edge and technology transfer, UK shows that such allowances much still needs to be done in than good ideas for business,” needed more money for devel- as €400,000. the reluctance of scientists to considerably support angel terms of producing attractive said Mr B∏oƒski. opment, it turned to investor Business angel investments commercialize breakthroughs financing,” he added. propositions for business With a little more publicity Piotr Wilam. Today Merlin.pl are usually long-term. Jacek and poor cooperation between Many Polish investors still angels. and guidance for entrepre- fills around 100,000 orders per B∏oƒski, chairman of Lewiatan regional institutions. fear the risks inherent in this “It is commonly noted that neurs, that money could find month. Business Angels, estimates that In 2009 only 24 percent of type of financing. According there is more money in our itself well invested. Mr Wilam is one of the the average time to see a return Polish entrepreneurs had to Adrian Fester’s estima- market for these types of invest- Katarzyna Piasecka most active angel investors in on investment in Poland is heard about angel investors, tions, many of the invest- ments from private sources and E. Blake Berry Poland, having started his about four to six years. but they did not know any ments financed by Polish career as an investor in 2004. According to Adrian Fester details about their role or how business angels end in failure. Early in his career he co- from PolBAN, the average they function, according to a Four companies in 10 go Angels take flight founded publisher Pascal, return rate for this type of study conducted by Pentor bankrupt. And only one in 10 Growth of angel investor organizations in Europe popular web portal Onet.pl investment is higher than tra- Research International. Only gives a return of between 300 and Optimus Pascal Multime- ditional market returns. eight percent indicated knowl- percent and 500 percent. 350 dia, a producer of multimedia “Generally, investors ex- edge of how angel investors 300 software. Apart from Mer- pect to earn a minimum of five function in the Polish market. Money awaits lin.pl and community portal times as much money as they This does not mean that Will angel investing continue to 250 Grono.net, he has invested in invested,” he said. new companies which are grow in popularity in Poland? 200 TV channel Kino Polska Mr B∏oƒski explained that already aware of the exis- Based on the trends seen in (which debuted on the War- most angels expect an internal tence of business angels are other markets, the answer is yes. 150 saw Stock Exchange in April rate of return of about 30 per- uninterested in this type of Mr B∏oƒski from LBA was 100 2011) and Krzysztof Kuchar- cent after this time. financing. However, not all cautiously optimistic. czyk Techniki Elektroforety- the projects they propose are “There is no reason to think 50 czne, a producer of equip- Hindrances feasible or sufficiently profes- that angel financing will not 0 ment used in the medical and According to the experts, angel sional. develop in Poland in the 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 biotechnology sectors. investing in Poland is ham- Mr B∏oƒski said that at future,” he said. Source: European Busniess Angels Network – Activity report 2009 According to Adrian pered by a lack of awareness, a present LBA attracts some This view was supported by Fester, the amount of money low level of mutual trust and a 200 projects per year. Mr Fester. PolBAN Polish angel investors put lack of external support for this “The quality of these proj- “Alternative forms of into individual projects is kind of business activity. Other ects and their substantive investment are becoming Warsaw-based, created in 2003. First Polish business angels comparable to that seen in issues include legal obstruc- value show that there is inter- increasingly popular in Poland network to join EBAN, which it then left in 2009. Brings togeth- the British or American mar- tions and a lack of clear regula- est in starting companies nowadays,” he said. “In our er about 80 business angels and has so far supported six kets. These are sums ranging tions concerning the knowl- with business angels, but few country there are also more projects. Examples: internet travel search engine and interme- of them are really prepared young millionaires who retire diary Qtravel.pl, business services provider Holicon or Orcan Lewiatan Business Angels enough to be an attractive from business at the age of 30- Software, company associating FOREX market specialists. target for such investors,” he 40, but do not want to give up Receives about 200-300 project proposals per year. ● Warsaw-based, created in September 2005. At present, LBA said. business activity. This group cooperates with 68 individual investors. The network has so According to Mr B∏oƒski, will look for inspiration and Website: www.polban.pl far supported the realization of nine investments, examples of the immaturity of the market invest capital in interesting which are film producing company Ozumi Films, ANT Indus- is but one of many obstacles. projects.” trial Software Programs, editorial company Flashbook or “The Polish market pro- However, to be made as chemicals producer Apeiron Synthesis. Receives some 200 vides no facilitation nor a spe- accessible to entrepreneurs projects per year. cific impediment for business in Poland as it is today in Managed by Polska Konfederacja Pracodawców Prywat- angels. Unlike Western Euro- Western countries, angel nych Lewiatan. ● pean countries or the US, we investing needs stimuli for Website: www.lba.pl do not have tax allowances for expansion and awareness of such investors. Data from the it needs to grow. Moreover, What is an angel investor? The practice of angel investment has of general business practices. He pub- ual who invests directly into promising been around for a long time, but it has lished seminal research on informal ven- entrepreneurial businesses in return for only been studied seriously for the last 30 ture capital in 1978 and this, in turn, led to stock in the companies. Many are entre- or so years. funding for a broader study whose find- preneurs themselves, as well as corpo- According to many sources, the term ings were summarized in the oft-cited rate leaders and business professionals.” “angel investor” originated in the early 1983 article “Angels and Informal Risk Other organizations add that angels 1900s on (and probably off) Broadway in Capital,” published in Sloan Manage- often make their own skills, experience New York. Other authors, however, claim ment Review. and contacts available to the company. it originated in the UK. In either setting, Today there is no single definition of The is one more thing which could be the term was employed to describe a an angel investor; each angel group – added to the definition. Although it’s sel- wealthy individual willing to finance a the- and sometimes each investor – is likely to dom writ large on angel groups’ web- atrical show. use different words to describe their sites, the investors themselves are William Wetzel, founder of the Center activity. One example, from the Angel straightforward in admitting that there’s for Venture Research at the University of Capital Association, an umbrella group nothing particularly “angelic” in their This is an edited version of a special feature on angel investors New Hampshire’s Whittemore School of which unites around 150 angel groups in activities. Angel investors are business- in Poland for Trendbook Poland, vol. 2, the latest edition of Business and Economics, is credited the United States, is as follows: people, not philanthropists, and they Warsaw Business Journal’s annual guide to trends shaping with popularizing the term in the context “An ‘angel’ is a high net worth individ- expect a return on their investment. ● Poland’s business market, available later this month. 18 www.wbj.pl ANGEL INVESTING IN POLAND MAY 9-15, 2011

Interview High risk, high reward

Jacek B∏oƒski, chairman of Lewiatan Business resources. I also actively look Angles, sits down with WBJ to discuss the risk for them myself in enterprise or of angel investing and how the Polish market technology parks, enterprise compares to its Western European counterparts incubators, in technology schools, innovation centers and Katarzyna Piasecka: Why did in the future. I feel rather personal networks. I am also a you decide to become an angel encouraged than discouraged. member of Go Beyond, a investor? I think that there are ways European organization taking Jacek B∏oƒski: I am able to to avoid failure. First of all, one the initiative to form angel accept above-average risk in should draw on the experience investor syndicates. exchange for above-average of more knowledgeable col- What sectors in Poland gen- returns. Therefore, one of the leagues and invest in groups, in erate the largest number of factors that convinced me to so-called “syndicates” of angel promising project proposals at start investing as a business investors. Secondly, diversifica- present? angel were the financial tion of an investment portfolio It is hard to define one such prospects that this kind of busi- remarkably reduces the risk in sector, but at present we see ness activity involves. angel investing. And finally, an increasing activity in academic I also wanted to support angel investor has to know environments. Higher educa- start-ups – to open the “contact gates” for them. I followed the successes of my colleagues “High risk is inherent in this from the West and I noticed that this is an interesting form type of business activity” of investing, with prospects for a high return and for helping start-up companies to make what he or she wants to focus tion and research institutes, their plans come true. on and elaborate his or her own especially technical universi- strategy of investing. ties, are places from where How high is the risk involved many interesting project origi-

in angel investing? How much have you invested nate. Enterprise incubators and ANGELS BUSINESS OF LEWIATAN COURTESY High risk is inherent in this type in projects so far? technology parks are also on Jacek B∏oƒski says Poland still has a lot to do to encourage more angel investing of business activity. I would say Basically, I do not invest large this list. that if an investor does not take sums, like some angels who relieving taxes for such by unfavorable legislation and son to the previous two or three the risk factor into account, he invest millions. My strategy is Do you think that the Polish investors or networks adds lack of government support. years. Their authors have or she should not think of angel to invest smaller sums, amount- market has good conditions more to the country’s economy become better informed and investing. The statistics are ing to hundreds of thousands, for angel investing? than when they paid full taxes. Are Polish entrepreneurs prepared and their projects undeniable – many ventures but in more risky and more Not really. I would even risk a Poland is an emerging mar- ready for angel investors? Are stand up to the higher stan- bring losses. This is why angel promising projects. I usually statement that the conditions ket for angel investors. This they able to prepare the quali- dards of angel investors. investing should be taken as an invest in science-based ven- on the domestic market do not year’s EBAN congress will no ty of project proposals that This is partly owed to alternative form of investing tures, where technology, intel- stimulate the development of doubt help us to progress, but angel investors expect? numerous training sessions and money. lectual property and patents angel investing. A predominant there is still a lot to do to catch We receive a significant num- seminars about angel investing are crucial characteristics. I problem here is that Poland is up with Western standards in ber of project proposals every that have recently been organ- Have you made any invest- prefer projects with high one of the few European mar- the domain of angel investing. year. The majority of them are ized in Poland. ments as a business angel that growth potential and those kets that does not provide of poorer quality than their The market has potential, didn’t work out? which can make their way to angel investors with tax Do you think Poland’s angel European or global counter- but still needs some time to Yes, I have. global markets. allowances for this type of investment environment will parts. Unfortunately, we still develop and to attain Western activity. eventually develop to reach see an advanced level of misun- standards. I believe in the [suc- Why didn’t this discourage you How do you find project The example of Great Bri- Western standards? derstanding and ignorance. cessful] development of angel from continuing? proposals? tain illustrates this best. There, Yes. The only question is over However, I see considerable investing in Poland and that is Such a defeat is a good lesson I take some of them from the government noticed that what period of time it will hap- improvement in the quality of one of the reasons why I do about which mistakes to avoid Lewiatan Business Angels’ supporting angel investing by pen. The market is sill impeded project proposals in compari- what I do. ● MAY 9-15, 2011 ANGEL INVESTING IN POLAND www.wbj.pl 19

Angel investor groups Connecting ideas with investment

The Lewiatan Business Angels network has company which produces soft- an angel investor. “We had ware to integrate and measure clients, we were already in sev- helped a broad range a range of industrial processes, eral large enterprises,” said of Polish firms link up has also benefited from LBA’s Andrzej Jarosz, the company’s with investors Wroc∏aw-based ability to match investors with founder and owner. Apeiron Synthesis, mean- enterprises that have promis- Lewiatan Business Angels while, received significant help ing ideas and sharp business (LBA) describes itself as “the from an investor it met plans. “If someone has a largest and most active busi- through LBA in 2009. The From its beginnings as a ness angels network in company produces catalysts one-man business in 2002, the good idea, then Poland.” Established in 2005 for the production of chemical firm now employs 15 people they will surely with the help of European products used in cosmetics, SHUTTERSTOCK and counts Fiat, Grupa Union funds, LBA’s aim is to advanced polymers and phar- works ˚ywiec and the National find investors” connect business angels with maceutical products. of peo- Bank of Poland entrepreneurs who need Apeiron CEO Micha∏ Bie- ple and was among its “In addition, we were deter- financing to grow and develop niek met with Leviathan Busi- later able to clients. mined for this to work. Maybe their enterprises. ness Angels representatives by secure a total of because of this there was Under the management of chance at a start-up fair in z∏.4 million in fund- greater investment interest.” the Polish Confederation of April 2008. ing from various organi- The process of finding an Private Employers Lewiatan, “I told them about my proj- zations. investor “was not difficult,” the organization currently ect, they bought the vision of The company is Mr Jarosz said. “We submit- cooperates with 68 individual the firm’s development and now growing but, ted our idea to Lewiatan investors and receives around thus began the adventure with along with the Business Angels and got a 200 projects every year. LBA,” he was quoted on LBA’s industry itself, list of about 10 interested website as saying, adding that is still at an investors.” The business end he had sought not only finan- early stage The firm then met with An eclectic mix of firms have cial support but also advice on of half of the interested parties benefited from Lewiatan Busi- how to develop his business. and chose a partner from ness Angel’s network of con- “Apeiron supplied the sci- among them. nections, including luxury entific knowledge and togeth- The “It seems to me that if goods importer Legic, which er we created a business plan devel- reward project,” compa- someone has a good idea, says it is the exclusive Polish and a business model,” LBA opment, Mr he added. ny had they will surely find investors agent for Montblanc, CEO Jacek B∏oƒski said. B∏oƒski said. already been who will want to enter into it,” Longchamp, Raymond Weil Apeiron, he said, was also “This is a Financing growth in existence for three years Mr Jarosz said. and ST Dupont. given access to the right net- high risk but high ANT ISS, a Kraków-based IT before it began the search for Gareth Price

Mobile IT Angels find a bright (Pol)idea

Mobile applications provider Polidea is a prime Lipiƒski, that eventually con- growing fast of late. The com- growing incredibly fast, so from where 90 percent of its example of a Polish angel investing success story vinced them to invest in pany quotes Yankee Group the prospects for the compa- revenues come, and streng- Polidea. In the end, they spent forecasts – which put the total ny are very promising,” Mr then its presence in countries Polidea, a company operating develop fast and be able to a total of less than z∏.100,000 value of the global mobile Gawrysiak said. He added such as the United Kingdom, in the quickly developing compete internationally. in return for a 40 percent stake applications market in 2013 that in the next few years France and the United mobile IT market, today Talks with Lewiatan Busi- in the company. at $4.2 billion. Polidea would be developing States. employes almost 30 people ness Angels (LBA) started in “The mobile IT market is its sales network abroad, Adam Zdrodowski both in Poland and abroad. It February 2009 with Mr Lipiƒs- Prospects for growth also cooperates with a number ki’s business idea quickly Since then, Polidea has of global clients. A little over attracting the attention of two secured a number of Polish investors – Tomasz Grzybows- and international contracts ki and Krzysztof Gawrysiak. and its investors claim that it “The company The process of working out can now take on even the most the details did not take much technologically demanding of made a profit in time – in May of that year the projects. founder of Polidea and his “The company is currently its first year of LBA partners were already carrying out a number of inter- signing the investment agree- national projects for global operations” ment. clients, which is no small dis- The investors stress that tinction for a young Polish two years ago, however, it was this was largely possible due firm,” Mr Gawrysiak said. just a business concept that to the professionalism of the Polidea quickly reached the needed the money and know- angel investor network. break-even point and made a how of experienced investors. “LBA fulfilled its role very profit in its first year of opera- well. Thanks to its internal tions. There has been interest Spreading its wings segmentation of investors in the company on the part of The origins of Polidea date and knowledge of their areas venture capital funds, Mr back to late 2008 when Jakub of interest, the offer found its Grzybowski and Mr Gawrysi- Lipiƒski, a graduate of com- way to business angels look- ak said, so even today, before puter science who had by that ing exactly for investments in having cashed out on the time already gained ample the mobile IT market,” Mr investment, they consider it as experience in the mobile IT Grzybowski said. money well spent. market, decided to start his Mr Grzybowski and Mr According to the in- own business. Soon after Gawrysiak say that it was not vestors, Polidea’s prospects founding the company, Mr only the attractiveness of the are bright, not least because

Lipiƒski realized he would industry, but also the abilities, of the fact that the global OF POLIDEA COURTESY need additional capital and motivation and determination mobile IT market has, like Investors Tomasz Grzybowski (left), and Krzysztof Gawrysiak (right) with Polidea contacts if the start-up was to of the concept’s creator, Mr the internet market, been CEO Jakub Lipiƒski (middle) 20 www.wbj.pl ANGEL INVESTING IN POLAND MAY 9-15, 2011

Start-up financing Venture capital as another option for Polish start-ups

President of the National Capital Fund (KFK), Angel investor networks Piotr G´bala, sits down with WBJ to talk about cooperate with venture capi- how his organization works to support start-ups tals to be more effective and to and what differentiates it from angel investing multiply funds in order to be able to realize a greater num- ber of investments. There are a great number of ity evolves to the point when initiatives to support Poland’s he or she wants to acquire ven- Why have KFK and the Swiss start-ups. Angel investors are ture capital. The second is government decided to support one of them, but National when angel investors join venture capital funds in their Capital Fund (KFK) president forces, create syndicates and program? Is this type of financ- Piotr G´ba∏a also makes the apply for funds that venture ing the most beneficial for the case for venture capital as a capitals grant. development of start-ups? valuable source of financing Our fund, KFK, also brings Venture capitals offer “smart small and medium-sized enter- together smaller venture capi- capital,” so not only money, prises (SMEs). tal funds which are, de facto, but also experience and con- The National Capital Fund syndicates of angel investors. tacts, as well as guidance in the has just completed one of the Apart from this, angel world of business. two phases of its program for investors and venture capitals Although every angel venture capital funds, in which often invest together, profiting investor also offers this “smart it offered capital support pro- from their experience and money,” as one person he or vided by the Swiss government doubling their capital, which is she has more limits. For exam- as part of the Swiss-Polish probably the most beneficial ple, an angel investor cannot Cooperation Programme configuration for both parties. be involved in all his or her (SPCP). investments to the same The total amount of money So, start-ups don’t necessarily extent, with the same dedica- earmarked by the Swiss gov- need to get funding from tion, because he or she cannot ernment for venture capital angel investors before matur- be in several places at the funds selected in the contest ing enough to seek out ven- same time. So either an angel comes to CHF53 million ture capital? investor becomes involved in (about €42 million). Of course, there is no concrete fewer ventures, or has more of phase of development for a them, but does not give them Katarzyna Piasecka: How is company where it can only an equal amount of attention. your activity similar to what receive funding from angel As for venture capitals, they angel investors do? investors and not venture cap- have management boards who Piotr G´bala: There are two itals, or vice-versa. These two decide where to invest money important ways in which these types of financing may com- and private investors who two types of financing [angel plement one another in the entrust their capital to them.

investing and venture capital] development of small and As a result, venture capital OF KFK COURTESY can cross paths. The first is medium-sized enterprises funds are able to act in a more Piotr G´ba∏a says angel investors and venture capitals can complement each other when an angel investor’s activ- (SMEs). planned way, to have an elabo- rated strategy concerning the Secondly, venture capitals National Capital Fund companies they invest in. are formed usually for a defi- Therefore, they may have nite period of time, the stan- “For us, a well-tuned National Capital Fund (KFK) is a fund-of-funds which pro- more dispersed focus and more dard of which is 10 years. vides venture capital for SMEs, particularly in four voivodships investments in portfolio with- These 10 years are an average team is a guarantee in Poland's southwest: Lubelskie, Ma∏opolskie, Podkarpackie out the risk that some of these time to obtain a return from and Âwi´tokrzyskie. ventures will be given more an investment. Angel investors of success” The fund was created in 2005. It is owned by Bank Gospo- attention, and some – less. have no such set limits. They darstwa Krajowego (BGK). KFK's mission is to bring together are more flexible than venture is nearly doubled; second, the team is a guarantee of suc- venture capitals and support their investments in SMEs to What are some other differ- capital funds. fund is managed by a corpo- cess. Previous editions of the reduce the equity gap in the financing of Polish start-ups and ences between angel investors rate entity. program have helped us to small companies. ● and venture capital funds? What are the main goals of By supporting SMEs, we find serious venture capitals Firstly, venture capitals take the program you are conduct- aim to reduce the “equity gap” with whom we still cooperate. corporate liability for their ing in partnership with the in funding for new ventures, We hope that this time will be Swiss-Polish Cooperation Programme activity, while angel investors Swiss government? which in Poland is estimated to no different. are private entities. If you were We aim to provide SMEs with come to over €300 million. We have already closed one The Swiss-Polish Cooperation Programme (SPCP), imple- a private investor and you the capital necessary for of the two phases of the contest mented in Poland in 2008, is a program by which the Swiss wanted to complain about, for development. KFK achieves Which venture funds have the and we are currently selecting government grants financial aid to Poland and the eleven example, how KFK invested this goal not through direct best chance of being selected venture capitals which will be other EU members that have joined the bloc since 2004. your money, you complain to a investments, but by creating in the framework of the pro- granted subsidies from the Through the framework of the program, Poland will receive legal organization. If a busi- venture capital funds in part- gram? Swiss government. We have some CHF489 million (about E385 million)total for the reduc- ness angel were to invest your nership with private investors. We are looking for profes- already chosen one venture tion of socio-economic discrepancies. ● funds, you may only complain This way we achieve two sional teams with good strate- capital fund with which we will to him or her. effects: one is that this capital gies. For us, a well-tuned sign an agreement. ●

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To order a print copy or CD-ROM version of the publication, e-mail [email protected] or call +48 (22) 639 85 67 ext. 208 Irish Investment Group’s Lokale Immobilia talks to Solaris Center project has Miasteczko Wilanów master- been green-lit plan architect Guy Perry 23 24 LOKALE IMMOBILIA Warsaw Business Journal’s weekly supplement on real estate, construction and development • MAY 9-15, 2011, LI 16/18

‘Family on Residential its Own’ popularity Dune project construction launch Banks have already granted over 100,000 The development will es of almost 145 sqm. subsidies within the be located on Mielno’s The value of the Dune framework of “Family on seafront investment, financing for its Own,” the which Mielno Holding- Fir- government’s popular Within the next few weeks mus Group has already mortgage-subsidy developer and investor Mielno secured from Noble Bank, is program for first-time Holding-Firmus Group will estimated at z∏.52 million. home buyers. Although launch construction on its Budimex has recently been the number of people Dune apartment building in selected as the general con- interested in the the seaside resort of Mielno, tractor of the project, while program is gradually Zachodniopomorskie voivod- Gleeds will be responsible for increasing, it is planned ship. The scheme, scheduled the management of the invest- to terminate in 2012. for completion in autumn next ment process. According to data year, will be characterized by Mielno Holding-Firmus gathered by Bank its location just meters away Group is a group of companies Gospodarstwa Krajowego from the shore of the Baltic active in the Polish, Norwegian (BGK), as of April 15, sea. and French real estate mar- 2011 as many as 100,222 Dune, which was designed kets. The group’s completed families had benefited by the Mellon Architekci stu- and ongoing projects in from subsidies granted dio, will comprise turn-key Poland include Mielno Tarasy within the program’s apartments priced at z∏.7,950 and Rezydencja Park, both of framework. per sqm. The majority of the which are located in Mielno. units will be two- and three- The firm is now also planning Saskie Zacisze room apartments sized from a major residential-commer- 30 sqm to 53 sqm, although cial scheme called Beach City

partnership the development will also INSTITUTE OF GLOBALBRAND COURTESY in the same resort. include a number of penthous- The value of the Dune investment is estimated at z∏.52 milllion Adam Zdrodowski Mak Dom has acquired 51 percent of shares in Diamentic Estate. The Shopping center two real estate investors have entered into a partnership to work on Saskie Zacisze, a Bella Dolina to move forward complex of single-family houses in Warsaw’s The developer expects retail units, entertainment Wawer district. The offer the mall to receive facilities and a parking lot for includes three types of over five million 2,800 cars. Anchor tenants will homes: detached houses visitors every year include a hypermarket and a of 224 sqm or large DIY store. semi-detached houses Developer Mayland Real According to Mayland’s of 188 sqm or 224 sqm. Estate and Rzeszów City Hall estimates, some 730,000 About a quarter of the have signed a land-swap potential clients live within houses have already agreement that will enable the Bella Dolina’s catchment been built. The whole construction of Bella Dolina, area. The center is expected to investment, begun in Q1 a new shopping center. With attract more than five million 2010, is planned to be 90,000 sqm of GLA, it is visitors each year. completed by the end of expected to become the Established in 2006, May- 2011. ● largest retail project in the land Real Estate specializes in region. The development is the development of regional In this issue scheduled to open at the end shopping centers. In 2008, the of 2013. company delivered the Dune project construction . . . .21 Bella Dolina will be locat- Karolinka, Pogoria and Jantar Bella Dolina mall ...... 21 ed in the fast-developing malls located in Opole, Factory Warszawa Annopol . .22 StaromieÊcie district in the Dàbrowa Górnicza and S∏up- Reinhold’s swap deal ...... 22 northern part of Rzeszów, sk, respectively. Within the New Panattoni BTS ...... 22 Podkarpackie voivodship, next few years, the firm plans Property-related stocks ...... 22 between the city’s downtown to deliver retail projects in Sejm complex expansion . . . . .23 area and Rzeszów Interna- Poland totalling 240,000 sqm Solaris Center permit ...... 23

tional Airport in Jesionka. of GLA. REAL ESTATE OF MAYLAND COURTESY Guy Perry interview ...... 24 The mall will comprise 170 Adam Zdrodowski Bella Dolina is expected to open at the end of 2013

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Logistics Panattoni announces new BTS project in central Poland

The facility will include scheduled for completion in “The Radomsko BTS is the environmentally-friendly autumn this year. second manufacturing facility solutions The investment will com- to be developed by Panattoni prise a 28,670-sqm produc- Europe in the special econom- Panattoni Europe will devel- tion hall, 2,270 sqm of office ic zone, the first one being the

COURTESY OF CISZEWSKI FINANCIAL COMMUNICATIONS OF CISZEWSKI COURTESY op a 32,000 sqm built-to-suit space and a 1,000-sqm techni- factory for Zelmer. I am happy manufacturing facility in cal building. It is expected to that Panattoni Europe keeps Retail Radomsko, ¸ódzkie voivod- feature environmentally improving its competences in ship, for an international friendly solutions, including the BTS market through client whose name has not water treatment and recy- developing various custom- Factory Warszawa Annopol been revealed. cling. made projects,” Marek The project, which will be The Polish branch of Foryƒski, BTS Group director gets ‘green’ certification located within the ¸ódê Spe- Japan’s Kajima Corporation at Panattoni Europe, said in a cial Economic Zone, close to is the general contractor of statement. European route E75, is the scheme. Adam Zdrodowski The outlet will be the first retail development in ciechowski architectural stu- Poland to be BREEAM-certified dio and located between ul. Annopol, ul. Toruƒska and ul. Developer Neinver Poland has developer to modernize this Bia∏o∏´cka in Warsaw’s Reinhold gets offer to swap obtained BREEAM certifica- concept by transforming a set Bia∏o∏´ka district, Factory tion for its planned Factory of general outlet stores into a Warszawa Annopol will com- Warszawa Annopol outlet modern bargain center,” stat- prise 19,700 sqm of space, shares for properties project in Warsaw. The ed Barbara Topolska, manag- housing 122 stores. scheme, construction on which ing director of Neinver Active in the Polish mar- Developer Reinhold Polska (opened in 2009), Solaris Cen- shares. The suggested mar- is expected to launch this Poland. ket since 2000, Neinver has AB has received an offer to ter in Toruƒ (construction ket price per share comes to autumn and finish in 2012, will “The BREEAM certificate been systematically realizing acquire three properties val- planned to start in Q4 2011) z∏.4.50. be the largest investment of its for Factory Warszawa Factory (outlets centers) and ued at a total of z∏.97.6 mil- and a logistics center near The transaction will be kind in Warsaw and the first Annopol is another momen- Futura Park (outlet centers lion. The offerer is Handuk Warsaw (currently under con- realized providing that it is retail development in Poland tous step in the development integrated with commercial Consulting Limited, a sub- struction). accepted by Reinhold Polska to have been granted the certi- of the Polish outlet center. parks) retail concepts. The sidiary of Alterco, a real The offer for the pur- AB’s shareholders. fication. BREEAM makes it possible company is now involved in estate investor that had previ- chase presented to Reinhold Reinhold Polska AB is a “Neinver introduced the to retain a healthy balance the reconstruction of the rail- ously been eying the purchase Polska AB provides for a daughter company of Swedish outlet center concept to between rigorous technical way station in Katowice and of Reinhold’s shares. non-cash transaction. In firm Reinhold. The company Poland when it opened Facto- requirements and commercial is building a retail/office com- The properties in question exchange for the properties, has been listed on the WSE ry in Ursus, a district of War- appeal,” Ms Topolska added. plex there. are two shopping centers: Handuk Consulting Limited since December 2007. saw. We were also the first Designed by the APA Woj- Adam Zdrodowski Solaris Center in Opole would take over Reinhold’s Katarzyna Piasecka

Property-related stocks Get an Insider’s Security Closing % change 52-week 52-week % change Total Market glimpse at all that price (week) low high (year) shares value on May 5 (z∏.mln) Warsaw has to offer with BUDIMEX 106.80 0.75 84.55 109.20 10.10 25,530,098 2,726.61 the Warsaw Insider! CELTIC 18.50 0.00 17.43 60.55 N/A 34,068,252 630.26 DOMDEV 45.50 -4.01 38.52 54.20 -25.35 24,560,222 1,117.49 ECHO 5.16 2.38 3.95 5.40 20.84 420,000,000 2,167.20 ELBUDOWA 168.00 5.40 150.00 188.40 -3.45 4,747,608 797.60 ENERGOPLD 3.95 0.00 3.57 4.31 -5.95 70,972,001 280.34 ERBUD 37.20 -0.83 37.20 61.00 -26.77 12,602,711 468.82 GANT 13.80 -1.43 12.98 24.10 -43.33 20,499,953 282.90 GTC 20.70 -0.96 19.58 24.98 -6.76 219,372,990 4,541.02 HBPOLSKA 2.25 3.69 2.14 3.90 -36.62 210,558,445 473.76 JWCONSTR 15.45 1.64 13.50 18.69 -4.51 54,073,280 835.43 LCCORP 1.56 -0.64 1.41 1.72 3.31 447,558,311 698.19 MARVIPOL 8.47 -0.35 8.31 17.70 -50.76 36,923,400 312.74 MIRBUD 4.05 1.25 2.79 4.75 37.29 75,000,000 303.75 MOSTALWAR 41.00 0.12 40.40 72.55 -39.97 20,000,000 820.00 MOSTALZAB 2.66 -3.27 2.63 4.40 -42.30 149,130,538 396.69 ORCOGROUP 35.95 1.55 19.00 40.00 30.25 14,053,866 505.24 PBG 160.30 -2.26 159.90 252.00 -30.91 14,295,000 2,291.49 PLAZACNTR 4.95 0.41 3.70 5.96 -16.24 292,647,720 1,448.61 Warsaw’s most ppopularopular EngEnglish-lish- POLAQUA 18.74 0.00 16.00 22.00 -10.76 27,500,100 515.35 languagelliftlift lifestyle magazine features:: POLIMEXMS 3.33 -4.31 3.33 4.84 -28.39 521,154,076 1,735.44 • top shopping reviews and listings POLNORD 31.69 -1.55 30.50 40.50 -19.36 22,389,268 709.52 • monthly calendar of parties, eventss RANKPROGR 12.55 2.78 9.59 13.60 N/A 37,145,050 466.17 and exhibitions ROBYG 2.07 0.49 1.70 2.13 N/A 257,390,000 532.80 • latest art, design, fashion and RONSON 1.58 1.28 1.36 1.85 -9.71 272,360,000 430.33 beauty trends TRAKCJA 3.48 -0.57 3.32 4.97 -15.94 232,105,480 807.73 • hotel, spa and fitness club reviews ULMA 87.00 -1.14 70.00 88.00 8.75 5,255,632 457.24 • up-to-the-minute resto, bar, cafe UNIBEP 7.05 -2.35 7.05 10.30 -8.08 33,927,184 239.19 and club reviews WARIMPEX 10.37 -4.51 7.64 10.89 22.43 54,000,000 559.98 ZUE 12.74 1.84 12.15 15.14 N/A 22,000,000 280.28 Subscribe to the Insider! Contacttt [email protected] lk MAY 9-15, 2011 LOKALE IMMOBILIA – REAL ESTATE www.wbj.pl 23

ConceptHouse Sejm complex to contractor be expanded? chosen Developer Atlas Estates A new building is set to be accepted, because this invest- has selected Warbud as added to the Polish Sejm on ment will not constitute one the general contractor of ul.Wiejska – if the budget bill heavy burden for the budget, its ConceptHouse for 2012 is accepted – accord- but will be realized over sever- residential project in ing to the Sejm Chancellery. al years,” said Mr W´grzyn. Warsaw. Construction on The extension is planned for The cost of the investment the scheme is expected the opposite side of the street is estimated at z∏.50-55 million. to launch soon and finish from the existing Sejm build- The new building will offer 16 in April 2013. Atlas ings, with work expected to halls, each able to hold a mini- Estates is currently in commence at the beginning of mum of 100 people. It will also talks concerning 2013 and to be completed by include offices and an under- financing for the 2015. The construction tender ground parking lot. development. Located is due to be published after H1 An underground passage between the capital’s ul. 2012. will link the new facility to the Cybernetyki and ul. Jan W´grzyn, deputy chief other Sejm buildings. Obrze˝na, ConceptHouse of the Chancellery of the Sejm, Mr W´grzyn emphasized will comprise 160 said the project first needs to that plans to expand the Sejm housing units sized 36-167 sqm, 1,100 sqm of

be accepted by the Sejm during complex had first appeared as OF CHANCELLERY THE SEJM COURTESY a vote on the 2012 budget bill. early as 2001, but were not The existing Sejm complex was built during Poland’s communist period commercial space and The project outline was pre- accepted. That year saw a signif- 190 parking spaces. sented to the Council of Minis- icant budget deficit, which limit- Secondly, said Mr W´grzyn, they are examples of unneces- Polish politicians suitable work- ters last Thursday. ed government expenditure the public often responds neg- sary expenditure. ing conditions. The existing Segro “There is a considerable only to investments that were atively to investment in new Mr W´grzyn said the Sejm buildings were built during Po- chance that the project will be deemed absolutely essential. Sejm facilities, often claiming needs to be expanded to give land’s communist period. KP expands Silesia IGI gets building permit for Solaris Center project portfolio Industrial space Real estate investor Irish provided by JSK Architekci, a developer Segro will build Investment Group (IGI) has Warsaw-based architectural a new logistics complex obtained a building permit for studio that also designed the near the Silesian capital its new retail recreational in- new National Stadium. of Katowice. Called Segro vestment, Solaris Center, in “Solaris Center is an inno- Industrial Park Tychy, the Toruƒ. vative project. We want it to be project will comprise Solaris Center will be locat- a vibrant place, not only as a some 56,000 sqm of ed near Toruƒ’s city center, at shopping center, but first and space. Segro has already the intersection of ul. Ga∏- foremost as a meeting place. I secured the first tenant czyƒskiego, Szosa Che∏miƒska am convinced that thanks to for the new park: Navo and Aleja 700-lecia. The facility our diverse retail-recreational PGD has pre-leased 6,000 will offer 35,000 sqm of leasable offer, great localization and sqm in the 15,000-sqm space on three storeys, hosting unique architecture, the center first phase of the scheme. 160 shops. A parking lot on the will soon become the favorite Also in Silesia, the roof of the building will provide shopping place of Toruƒ inhab- developer is now 1,200 parking spaces. itants,” said Padraic Coll, IGI’s expanding its existing The cost of the investment chairman and one of its Tulipan Park Gliwice is estimated at over z∏.300 mil- founders. development. A new lion. IGI has been active in phase of the project will Work on Solaris Center is Poland’s real estate market for provide 18,000 sqm of scheduled to begin in Q4 2011. almost 10 years. The combined warehouse space, 13,500 The facility is expected to be value of the company’s invest- sqm of which has €

COURTESY OF TBT & WSPÓLNICY COURTESY completed in H2 2013. The ments is estimated at 1 bil- already been Solaris Center is scheduled for completion in the second half of 2013 design of Solaris Center was lion. Katarzyna Piasecka pre-leased. ● 24 www.wbj.pl LOKALE IMMOBILIA – REAL ESTATE MAY 9-15, 2011

BTC Office Urban planning Center changes hands IVG Institutional Funds Don’t fence us in has acquired the BTC Office Center project in Warsaw from BTC. The Lokale Immobilia talks to French-American transaction, whose value architect and urban planner Guy Perry, has not been disclosed, president and founding partner of design and marks IVG’s second office development services company IN-VI, about his property acquisition in the Miasteczko Wilanów project in Warsaw and the capital in recent months after its purchase of the problems of urban planning in Poland Victoria office building in October last year for Adam Zdrodowski: The mall, incompatible with the around €29 million. The Miasteczko Wilanów scheme concept of an open, resident- BTC Office Center is has won international recog- friendly estate. What’s your located in the capital’s nition, but critics have said view? Mokotów district. that not all of what the origi- To our knowledge the potential nal master plan called for has interior shopping component EGIS in GTC’s been realized. What is your will represent about one-third assessment of the project, now of what is now called “Down- Corius building a decade after its development town Wilanów.” The remain- started? der is still planned to be organ- Hungarian Guy Perry: I believe that of ized around the traditional pharmaceutical firm EGIS what has been built over the streets and squares that have has leased almost 1,700 last 10 years, 90 percent is con- always been promised for the sqm of office space in the sistent with what was intended. heart of the community. This is Corius building of Globe The biggest difficulty is regard- an objective shared by Pol- Trade Centre’s Ok´cie ing what has not yet been built nord, Capital Park and PKO Business Park complex in and in what order it was exe- BP Inwestycje. It is also the Warsaw. Corius, which cuted. I came to Poland in 1999 objective of the current admin- will deliver 9,100 sqm of to work on the Town Center istration. class-A office area and for a Canadian/American It is likely that IN-VI will be will be the third office developer. It was to be the first working on the design of the building in the business phase and heart of a new com- public spaces, and if so we will park, is currently under munity; hopefully we will see it do our best to keep promises construction and is coming up – of course 12 years made a decade ago. Some inte- scheduled for completion later. rior spaces and galleries have by the end of the year. It is also a miracle that the always been part of the con- project survived until 2010, cept of the center of Arvato stays in given that virtually the only Miasteczko Wilanów. I am entrance to the development hopeful that GTC and their

Panattoni Park forced one to pass by an aban- architects will rise to the occa- OF IN-VI COURTESY doned carcass of a city hall and sion and deliver something of Cohesive urban plans are the future, says Mr. Perry, but they are not easy to pull off Poznaƒ II failed residential development. enduring commercial and Arvato Services Polska The density west of Al. urban value. carbon footprint through the has renewed its lease Rzeczypospolitej is consider- roof and has exploded our contract for 12,600 sqm ably higher than was originally Do you believe that large, waistlines. People will simply at the Panattoni Park intended – but to [Ostoja architecturally cohesive proj- no longer have the option to “What I see happening around major Poznaƒ II logistics Wilanów developer] Fadesa- ects such as Miasteczko walk, and public transport can- Polish cites is not unlike what we saw complex in Wielkopolskie Polnord’s credit, they have Wilanów are the future of not efficiently accommodate voivodship. The tenant, chosen to reduce the density urban planning in Poland and this fragmented urban devel- decades ago in the US and which belongs to the that they had already received elsewhere? opment pattern. The US is try- Arvato AG group and is permits for – something rare in In order to develop sustain- ing to implement new planning Western Europe” part of the Bertelsmann Poland. able and qualitatively compet- policies, but once you go that AG media corporation, Another component that itive cities this is the only way route it takes decades to come uses the leased area for has detracted significantly to go, but I have to be honest – back, if ever. In you opinion, what are bad – can really create long- warehousing purposes from the image and value of they are really difficult to pull Poland’s biggest problems term value for Polish cities and and its book-dispatch the community is the disregard off. You need a good vision Marina Mokotów, another when it comes to urban plan- the economy, but not from the services. or ambiguous responsibility of from the start, people who will project of this kind in Warsaw, ning, and how could urban sidelines. the residual spaces between stick with that vision for de- is not regarded an example of planning in the country be buildings: like the Royal Axis cades. A city has to support it proper urban planning. How improved? What major projects is your Dom and Klimczaka Canal [official regardless of political vicissi- do you see it? What I see happening around company currently working name Wolicki Canal – ed.]. tudes, someone (in our case Marina Mokotów is simply a major Polish cites is not unlike on? Development Both of these spaces should be citizens) has to be willing to gated community, like many, what we saw decades ago in the We are working on a new com- eyes Warsaw the highlight of the project – fill in the gaps. that for marketing purposes US and Western Europe. I munity on the eastern edge of beautiful and organized linear Unable to maintain the very plays on the fears of insecurity. already mentioned the US; in Poznaƒ with an array of servic- land parks for the people of the basics, Central European cities It celebrates its “gatedness” as Western Europe [this type of es: shops, schools, play- Warsaw Stock community and Warsaw – are a mess, the majority of the if we were located in a war urban planning] is simply illegal grounds, parks with lakes, even Exchange-listed instead they are too often left suburban areas are like giant zone. now. The idea that you can sim- stables. A tram line is expected residential developer Dom to the dogs. villages with strip develop- Newsweek published a sta- ply buy land on the urban fringe to pass through the heart of the Development has signed a Through our local actions ment. Good urban planners tistic a couple of years ago and build with basic infrastruc- community. The developer preliminary purchase we are trying to improve this have no authority to pull these regarding the chances of being ture requirements is something wants to make something very agreement with Wojskowe situation, but with little tradi- things together. That’s unfor- killed by a gunshot in countries from the last century. human and without gates. Towarzystwo tion of public space mainte- tunate, since this work is not throughout the world. Poland It is unfortunate that the We are also working on Budownictwa Spo∏ecznego nance in Warsaw beyond a few being done now, with relatively in this respect was safer than good architects and planners QBIK on ul. Woronicza, in “Kwatera” concerning tourist attractions in the cen- cheap labor. They will be even Switzerland – not many gated are so tied up trying to win Warsaw, which celebrates the almost 99,000 sqm of land ter, it is an uphill battle to even less affordable to implement in communities there. small battles that they rarely transitional and semi-industri- on ul. Powàzkowska in the have decent grass at z∏.1 per the future. We have had virtually no make good politicians here. In al character of the neighbor- capital’s ˚oliborz district. sqm. [But I am confident we] It is much easier to plug serious crime in Miasteczko Brazil, an architect of Polish hood through high volumes The value of the will find solutions. your mall or gated community Wilanów – I hope it will stay decent, Jaime Lerner, not only and vast expanses of glass. transaction amounted to onto an existing highway and that way. When the street is became mayor of Curitiba, but The developer, Ghelamco, over z∏.168 million. A major retail project is now let the residents drive around everyone’s business, lots of governor of the state [of had the courage to orient However, a number of being planned within to make their “community” – a doors, no fences, it polices Parana] for two terms. shops and restaurants to the conditions have yet to be Miasteczko Wilanów. There path we took in the US during itself. It is great to see joggers Planners, if they are both street and to celebrate the met before the initial sale are some fears that the the last decades of the 20th and dog-walkers out at mid- local and exposed to interna- building’s transparency and is finalized. ● scheme could be yet another century. That path has put our night. tional experience – good and urbanity. ● The 2011 edition of Book of Lists is now available!

A guide to Polish business and industry Przewodnik po polskim biznesie i gospodarce

• Find key information about the dominant players in the market • Expand your portfolio of contacts • See who’s on top of your sector

To order: Please contact us at +48 22 639 85 68 or [email protected] 26 www.wbj.pl THE LIST MAY 9-15, 2011

Construction and Real Estate General Contractors Ranked by revenue from general contracting in 2009 www.bookoflists.pl

Construction speciality

Company name Revenue from Address general Export revenue Total revenue General / Industrial / Services other than Major projects recently Major projects under Top local Tel./Fax contracting (z∏. mln) including export Public / Civil general contracting completed construction executive / Rank E-mail (z∏. mln) Residential engineering Title Web page (z∏. mln) Year founded Year

2009 / 2008 / 2007 Number of employees /

Polimex - Mostostal SA ul. Czackiego 15/17, 00-950 Warsaw 4,179.5 WND 4,836.7 ✓ Production of steel Chopin Centre in Warsaw; the main and A1 highway SoÊnica junction - Maciejów ✓ products; hot dip subsidiary breakwater in commercial port junction; football stadiums: Legia in WND Konrad Jaskó∏a 1 22 829-7100 (-09)/22 826-0493 3,375.7 WND 4,301.1 ✓ Sirte (Libya); Solpark sports and educational ✓ galvanizing; sound barrier Warsaw, Wis∏a in Kraków; Museum Of The 1945 President; General Director [email protected] 2,899.2 WND 3,720.5 ✓ and baffle production complex in Kleszczów; A4 highway Wielicka History Of Polish Jews in Warsaw www.polimex.pl junction – Szarów junction

Strabag Sp. z o.o. 3,143.0 ✓ Galeria Jurajska in Cz´stochowa; Salwator ul. Parzniewska 10, 05-800 Pruszków WND WND ✓ Reconstruction of Warszawa Wschodnia 3,978 Alfred Watzl, Pawe∏ 2 22 714-4800/22 714-4900 2,192.0 WND WND ✓ WND City residential area in Kraków; ring road in railway station; Galeria Kaskada in ✓ Wroc∏aw; residential area on ul. 1985 Antonik [email protected] 2,183.0 WND WND ✓ Skierniewicka in Warsaw Szczecin; A2 highway; S7 high-speed road Board Members www.strabag.pl

Skanska SA ul. Gen. Zajàczka 9, 01-518 Warsaw 3,000.0 WND WND ✓ Atrium City in Warsaw; ring road in Biecz; A1 highway Nowe Marzy-Toruƒ section; ✓ extention and modernization of municipal western ringroad in Poznaƒ; northern 6,599 Krzysztof Andrulewicz 3 22 561-3000/22 560-8301 2,800.0 WND WND ✓ WND wastewater treatment plant in Stalowa ✓ ringroad in Wroc∏aw; modernization of 1945 President [email protected] 3,200.0 WND WND ✓ Wola; upgrading of Mi´dzylesie - state railway tracks on Warszawa Gdaƒska www.skanska.pl border railway tracks

Grupa Budimex SA Reconstruction of Murckowska junction in ul. Stawki 40, 01-040 Warsaw 2,967.0 143.0 3,404.0 ✓ Katowice and driveway construction; office A1 highway Pyrzowice - Piekary Âlàskie ✓ building expansion in Radwar Business Park (including junctions); A4 highway D´bica - 4,767 Dariusz Blocher 4 22 623-6000/22 623-6001 3,209.0 164.0 3,366.0 ✓ WND ✓ in Warsaw; high speed roads S5 and S10 Rzeszów; modernization of Wroc∏aw 1968 General Director [email protected] 3,071.0 413.0 3,140.0 ✓ from Stryszek junction - Bia∏e B∏ota junction; G∏ówny railway station www.budimex.pl the second airport terminal in Gdaƒsk

Grupa Kapita∏owa PBG SA 2,578.0 ✓ Extention of Urban Stadium in Poznaƒ; Left- LMG Project; construction of a surface part ul. Skórzewska 35, 62-081 Przeêmierowo WND WND ✓ 3,722 5 61 665-1700/61 665-1701 2,091.4 WND WND ✓ Crude oil and natural gas bank Wastewater Treatment Plant in Poznaƒ; of Underground Gas Storage Jerzy WiÊniewski ✓ installations Przedsi´wzi´cie ÂwinoujÊcie residential and Wierzchowice; construction of the National 1994 President [email protected] 1,406.0 WND WND ✓ commercial complex Stadium in Warsaw www.pbg-sa.pl

Grupa Kapita∏owa Mostostal Warsaw SA 2,321.0 390.0 2,712.0 ✓ Atlas Arena in ¸ódê; Focus Park in Piotrków National Music Forum in Wroc∏aw; ul. Konstruktorska 11A, 02-673 Warsaw ✓ Trzybunalski; City Police Headquarters in Wroc∏aw highway ring road; A2 highway 5,300 Jaros∏aw Popio∏ek 6 2,001.0 210.0 2,211.0 ✓ WND 22 548-5600 (-01)/22 548-5666 ✓ Poznaƒ; Northern Waterworks Insitute in ¸ódê - Stryków; A4 highway Rzeszów 1945 President [email protected] 1,746.0 182.0 1,928.0 ✓ Wieliszewo Central Junction - Rzeszów East www.mostostal.waw.pl

Warbud SA Extension of wastewater treatment plant Al. Jerozolimskie 162A, 02-342 Warsaw 1,663.0 WND 1,795.0 ✓ Apartment complex Grzybowska in Warsaw; Czajka in Warsaw; Âwiàtynia Bo˝ej ✓ Platinum Business Park office building in OpatrznoÊci in Warsaw; S-8 high-speed 1,003 W∏odzimierz W∏odarczyk 7 22 567-6000/22 567-6001 1,621.0 WND 1,767.0 ✓ WND Warsaw; Medicover Hospital in Warsaw; ✓ road Konotopa - Al. Prymasa Tysiàclecia in 1992 President [email protected] 1,645.0 WND 1,720.0 ✓ extention of Heveliusz Mercury Hotel in Warsaw; Centrum Nauki Kopernik in www.warbud.pl Gdaƒsk Warsaw

Hydrobudowa Polska SA Modernization of wastewater treatment ul. Skórzewska 35, 62-081 Przeêmierowo 1,442.7 WND 1,706.5 ✓ plant in Piaseczno; construction of sewerage A4 highway Tarnów - Rzeszów; the ✓ and water supply network Strachocin - National Stadium in Warsaw; design and 973 Jerzy Ciechanowski 8 61 664-1950/61 664-1951 1,225.0 WND 1,267.0 ✓ WND Wojnów - Wroc∏aw; wastewater ✓ construction of waste disposal facility in President [email protected] 572.0 WND 597.0 ✓ management investments in Jas∏o; 1968 construction of sewage system in Podgórz, Gdaƒsk; football stadium in Gdaƒsk Letnica www.hbp-sa.pl Stawki and Rudak districts in Toruƒ

Hochtief Polska SA 918.0 WND WND ✓ Platinum Towers apartment complex in Residential and commercial building on ul. Elblàska 14, 01-737 Warsaw ✓ 819 9 22 560-0800/22 633-9786 1,231.0 WND WND ✓ Investment process Warsaw; Diamante Plaza office building in Twarda street in Warsaw; Futura Park in Henryk Liszka ✓ FormArt Kraków; Euroglass factory in Ujazd; Kimball Modlniczka; Wroc∏aw - Strachowice airport 1996 President [email protected] 1,149.0 WND WND ✓ Electronics Poland plant in Tarnów Podgórny extention; breakwater in ÂwinoujÊcie www.hochtief-polska.pl

Mota-Engil Central Europe SA Residential, office and commercial complex S7 high-speed road construction Skar˝ysko ul. Wadowicka 8W, 30-415 Kraków 624.7 WND WND ✓ Production of bituminous Angel Wings in Wroc∏aw; rebuilding of A4 Kamienna-Wyst´pa; design and WND and concrete mixtures, highway Balice - W´ze∏ Tyniecki - construction of national road no. 8 Je˝ewo 1,865 Fiel Barbosa 10 12 664-8000/12 664-8001 633.0 WND WND WND prefabritacated concrete WND Opatkowice; rebuilding of national road no.7 - Bia∏ystok; S8 high speed road Wroc∏aw - 1953 President [email protected] 390.0 WND WND ✓ and reinforced concrete Zabornia - Chy˝ne; rebuilding of viaduct on Psie Pole - Syców; design and construction www.mota-engil-ce.pl elements national road no. 39 in Strzelin of the second bridge on Sandomierz

Kozienice Power Plant - design, delivery Energomonta˝-Pó∏noc SA STF - assembly of HRSG boiler for GONYU in and assembly of instalation for de- 300.0 Hungary; Lotos Serwis - assembly and sulphurization of combustion products; ul. Przemys∏owa 30, 00-450 Warsaw 92.0 392.0 - ✓ 1,754 11 22 583-6000/22 583-6006 219.0 104.0 323.0 ✓ Materials diagnostics and maintenance of pipelines in Rafineria Gdaƒsk; Polimex-Mostostal - assembly works for W∏odzimierz Dyrka ✓ research VKN Polska - construction of unloading and PTA acid installation in W∏oc∏awek; Polimex 1953 President [email protected] 194.0 119.0 313.0 - storage installation for biomass in Port EC Sices Polska - assembly works for MHC www.energomontaz.com.pl Wroc∏aw Installation; Kozienice Power Plant - construction of a new compressor no. 2

NDI SA ul. Powstaƒców Warszawy 19, 298.0 WND 363.0 ✓ Developer services; Tourist Centre in Gdaƒsk; Apartamenty Przy 81-718 Sopot ✓ investment consulting; Shopping malls in Sopot; Dom Zdrojowy in Pla˝y residential buildins in Gdaƒsk; A4 134 Jerzy Gajewski 12 279.0 WND 287.0 ✓ real estate management Sopot highway Brzesko - Wierzchos∏awice; A1 58 771-7700/58 771-7701 ✓ ✓ 1991 President [email protected] 312.0 WND 325.0 and administration highway Nowe Marzy - Toruƒ www.ndi.com.pl MAY 9-15, 2011 THE LIST www.wbj.pl 27

Construction speciality

Company name Address Revenue from Total revenue General / Industrial / Top local Tel./Fax general Export revenue Services other than Major projects recently Major projects under contracting (z∏. mln) including export Public / Civil general contracting completed construction executive / Rank E-mail (z∏. mln) Residential engineering Title Web page (z∏. mln) Year founded Year

2009 / 2008 / 2007 Number of employees /

Mirbud SA ul. Unii Europejskiej 18, 96-100 Skierniewice 266.0 WND 272.0 ✓ Extention of Maximus shopping center in Mszczonów ring road; ATM Studio film and ✓ Nadarzyn; PCO headquarters in Warsaw; television studio in Warsaw; EWT Truck & 301 Halina Mirgos 13 46 833-9828/46 833-9732 294.0 WND 309.0 ✓ WND Trailer service station and showroom in ✓ east ring road in Skierniewice; national road 2002 President [email protected] 187.0 WND 200.0 ✓ no. 14 ¸owicz section Stryków; Marywilska 44 market halls www.mirbud.com.pl in Warsaw

AWBUD Sp. z o.o. ul. Reja 4, 42-440 Fugasówka 280.0 WND WND ✓ Design and management PepsiCo manufacture extension in ✓ of investment processes; Michrów; PPF Hasco-Lek production plant Ozen Plus green energy plant in Wa∏cz; 500 Micha∏ Wuczyƒski 14 32 671-5201/32 672-2280 311.0 WND WND ✓ in Siechnice; Develey warehouse and office wastewater treatment facilities in Kozienice; ✓ reinforced concrete work; 1989 President [email protected] 146.0 WND WND ✓ installation work in Warsaw; CMC Poland warehouse in Skotan production plant www.awbud.pl Zawiercie

Henpol Sp. z o.o. ul. Zimna 9, 20-204 Lublin 189.0 WND 189.7 ✓ Nowy Wilanów (Villa Bianca) residential ✓ area in Warsaw; Spadochroniarzy-Po∏udnie Derby 9 residential area in Warsaw; Nowy 700 Henryk Polak 15 81 745-1051/81 749-6107 230.2 WND 230.6 ✓ WND Wilanów (Klasyków – 3rd phase) residential ✓ III residential area in Âwidnik; Derby 16 2004 President [email protected] 160.6 WND 167.8 ✓ residential area area in Warsaw www.henpol.com.pl

Allcon Budownictwo Sp. z o.o. S.k. ul. ¸u˝ycka 6, 81-537 Gdynia 163.0 WND 168.0 ✓ ¸u˝ycka Office Park office buildings in Nova Oliwa residential community in ✓ Gdynia; Social Science department of Gdaƒsk; Biology department of Gdaƒsk 92 Mariusz Bia∏ek 16 58 660-1900/58 660-1901 208.0 WND 212.0 ✓ Subcontracting Gdaƒsk University in Gdaƒsk; Radisson Blu University in Gdaƒsk; Sportowa Centrum [email protected] 166.0 WND 168.0 ✓ - Hotel in Gdaƒsk; Ziaja factory in Gdaƒsk- office building in Gdynia; Allcon@park 3 1990 President www.allcon.pl Kolbudy office building in Gdaƒsk

Przedsi´biorstwo Budowlane Dombud SA Public Municipal Library in OÊwi´cim; Board 150.0 WND 150.0 ✓ Construction of residential complex and ul. Drzyma∏y 15, 40-059 Katowice ✓ Developer services; TBS; terrain cultivation in Gliwice; residential of Customs in Katowice; residential building 861 Lubomir Rosiek 17 205.0 WND 205.0 ✓ Bulwary Rawy in Katowice; residential 32 251-3541/32 251-1088 ✓ concrete; installations biuldings in Tychy; residential building D President, General Director 200.0 WND WND ✓ building with garage and service area in 1945 [email protected] Z∏ocieƒ in Cracow; sports hall in Miko∏ów Gliwice www.dombud.pl

RD bud Sp. z o.o. ul. Ry˝owa 33B, 02-495 Warsaw 143.4 WND WND ✓ ✓ ¸ódê printing house; Wroc∏aw Logistic Castorama in Bytom; IKEA in Kraków; 108 Eric Agnello 18 22 534-9000/22 863-4360 210.0 WND WND ✓ WND Centre; Cristal Park in Warsaw; B&B Hotel Mokotowska Square in Warsaw; Brico ✓ 1997 General Director [email protected] 151.0 WND WND - in Toruƒ Depot in Pu∏awy www.rdbud.com

GSE Polska Sp. z o.o. ul. 1 Sierpnia 6A, 02-134 Warsaw 136.0 WND WND ✓ ✓ Panattoni in Stryków; Indesit finished goods JYSK in Radomsko; Cross Point in ˚ory; 20 Kambo Zabusu 19 22 878-7670/22 878-7680 239.0 WND WND ✓ Design warehouse in Radomsko; Procter & Gamble ✓ Brembo in Dàbrowa Górnicza 1999 General Director [email protected] 217.0 WND WND - plant in Aleksandrów ¸ódzki www.gsegroup.pl

MC Kontrakty Budowlane Sp. z o.o. Extension of production plant for SCA ul. Rogowska 3, 91-519 ¸ódê 105.0 WND WND ✓ Construction of power electronics products Hygiene Products in O∏awa; extention of ✓ plant and Logistics Center for ABB in production plant for Procter & Gamble in 62 Piotr Grabowicz 20 42 658-8444/42 658-2202 79.0 WND WND - WND Aleksandrów ¸ódzki; extention of logistics ✓ Aleksandrów ¸ódzki; extention of medical President [email protected] 55.0 WND WND ✓ center for SERGO Poland in ¸ódê; extention 1991 products plant for HT Lancet in ¸´czyca of production plant for Avon Operations www.mckb.pl Polska in Garwolin

CFE Polska Sp. z o.o. Al. Jerozolimskie 92, 00-807 Warsaw 92.1 WND 92.1 ✓ Husquarna machinery and garden ✓ “Przymorze” shopping mall in Gdaƒsk; Villa equipment plant in Mielec; Soprema plant in 95 Bruno Lambrecht 21 22 456-1600/22 456-1601 266.5 WND 266.5 ✓ Project services ✓ L’Azur residential area in Warsaw B∏onie; Cztery Oceany residential area in 1996 General Director [email protected] 184.1 WND 184.1 ✓ Gdaƒsk www.cfe.com.pl

HARTBEX Przedsi´biorstwo Budowlane Sp. z o.o. Asseco Poland offices in Rzeszów; 90.1 6.5 96.6 ✓ Meta-Zel production and storage hall in Trzebownisko 22, 36-001 Trzebownisko ✓ Farmacol warehouse construction and Rogoênica; Rossmann office building in ¸ódê; 294 Pawe∏ Bàcal 22 111.0 9.6 121.0 ✓ Developer services office modernization in Rogoênica; 17 771-3600/17 771-3601 ✓ Zelnar production hall in Taj´cina; Instytut President 68.0 15.4 83.0 ✓ BorgWarner plant in Jesionka - Taj´cina; 1992 [email protected] Greinplast depot in Krasne Lotnictwa office building in Warsaw www.hartbex.pl

Extension of printing house for H. Bauer Prochem SA Druck publisher in Ciechanów; Scientific ul. Powàzkowska 44C, 01-797 Warsaw 80.4 WND 183.0 ✓ Design; substitution and Didactic Centre of Horticulture and ✓ investment; investment Landscape Architecture Department at Coperion storage silo in W∏oc∏awek; Building 232 Jaros∏aw St´pniewski 23 22 326-0100/22 326-0101 282.5 2.4 378.0 ✓ Research Institute sewage gas installation in ✓ supervision; delivery SGGW in Warsaw; Bioagry bioethanol 1947 President [email protected] 124.0 23.0 249.0 ✓ completion production plant in GoÊwinowice; Iryd Pionki www.prochem.com.pl Concorde Investissement residential complex in Kraków

Steel structures; Mostostal Pu∏awy SA technology installations, ul. Budowlanych 5, 24-110 Pu∏awy- Azoty 36.6 WND 246.7 - machinery in industrial Zachem TDI complex extention in PGE boiler assembly in Szczecin; new ✓ plants; pipeline Bydgoszcz; PKN Orlen terephthalic acid facilities fo Fertilizers Research Intitute in 1,120 Tadeusz Rybak 24 81 473-1240-41/81 473-1244 84.3 WND 238.0 ✓ plant in W∏oc∏awek; CFB boiler assembly in Pu∏awy; bridge over Wieprz river in Kock; ✓ construction and 1963 President, Director [email protected] 34.4 WND 179.7 - assembly; design steel Norrkoping (Sweden); ZA Pu∏awy industrial assembly of boilers in waste incineration www.mostostal-pulawy.com.pl construction and gases plant facilities in Riverside (UK) technological installation

Torus Sp. z o.o. Sp. k. Offices and warehouse Al. Grunwaldzka 413, 80-309 Gdaƒsk WND WND WND - construction and ✓ commercialization; Arkoƒska Business Park in Gdaƒsk (2nd Arkon Hotel in Gdaƒsk; residential building 35 NR 58 764-6376/58 764-6311 WND WND WND - S∏awomir Gajewski - residential construction phase) Piotrkowska 21 in Gdaƒsk 2002 President [email protected] WND WND WND ✓ and sales; property www.torus.gda.pl management

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was done in 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- July 2010. Number of employees and ownership structure are as of July 2010. All information graphical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska pertains to the companies’ activities in Poland. Companies not responding to our survey are 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to [email protected]. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced not listed. in whole or in part without prior written permission of the publisher. Reprints are available. 28 www.wbj.pl MARKETS MAY 9-15, 2011

world stock indices Stocks report DJIA NASDAQ S&P500 FTSE100 DAX NIKKEI225 12,584.17 (May 5 close) 2,814.72 (May 5 close) 1,335.10 (May 5 close) 5,920.00 (May 5 close) 7,376.96 (May 5 close) 9,859.20 (May 5 close) The Osama -1.40% (for the week) -2.01% (for the week) -1.87% (for the week) -2.47% (for the week) -1.31% (for the week) 0.10% (for the week) CHANGE: 8.70% CHANGE: 5.16% CHANGE: 6.16% CHANGE: 0.34% CHANGE: 5.79% CHANGE: -4.76% effect (year to May 5) (year to May 5) (year to May 5) (year to May 5) (year to May 5) (year to May 5) Tomasz Jerzyk, 52-week high: 12,928.50 52-week high: 2,887.75 52-week high: 1,370.58 52-week high: 6,105.80 52-week high: 7,600.41 52-week high: 10,891.60 technical analyst DM BZ WBK SA 52-week low: 9,596.04 52-week low: 2,887.75 52-week low: 1,010.91 52-week low: 4,790.00 52-week low: 5,607.68 52-week low: 8,227.63 Polish stocks finished down Metals markets went sharply Major indices last week, with the biggest down along with crude oil firms suffering the most. The markets. Metals producer blue-chip WIG20 eased by KGHM and oil companies WIG 49,266.97 (May 5 closure) WIG20 2,858,91 (May 5 closure) more than 1.5 percent. Orlen and Lotos have been Change for the week: -2.51% 52-week high: 2,932.62 Change for the week: -1.90% 52-week high: 50,371.74 It was quite a volatile the darlings of institutional Change year to May 5: 3.78% 52-week low: 2,270.13 Change year to May 5: 3.40% 52-week low: 39,109.37 week, as major global bours- investors in Poland in recent es began trading sharply months, but those companies 51,000 3,000 higher on Monday on the fell by between four and five news that Osama bin Laden percent. 50,600 2,960 had been shot dead by US In the case of KGHM, 50,200 2,920 special forces in Pakistan. riots outside the company’s The rally was short-lived and headquarters probably helped 49,800 2,880 bears took advantage to sell push its share price down-

49,400 2,840 stocks at new highs. Some wards. The company’s shares profit taking took place dur- will be watched closely by 49,000 2,800 ing the following days. investors as they wait for the 05.04 06.04 07.04 08.04 11.04 12.04 13.04 14.04 15.04 18.04 19.04 20.04 21.04 26.04 27.04 28.04 29.04 02.05 04.05 05.05 05.04 06.04 07.04 08.04 11.04 12.04 13.04 14.04 15.04 18.04 19.04 20.04 21.04 26.04 27.04 28.04 29.04 02.05 04.05 05.05 On the WSE, enthusiasm firm’s earnings, which are after bin Laden’s death was scheduled to be released on limited only to futures mar- Friday. Top 5 Closing % change (week) 52-week high 52-week low Top 5 Closing % change (week) 52-week high 52-week low kets, which start trading 30 Telecoms performed the WANDALEX 2.55 16.44 3.62 1.82 TPSA 17.75 -0.22 18.65 14.10 minutes earlier than cash best, with both TP and CALATRAVA 0.68 13.33 0.68 0.29 BRE 345.00 -0.29 349.00 221.10 markets. Major indices did Netia each gaining about POLCOLORIT 0.36 12.50 0.48 0.28 CYFRPOLSAT 16.04 -0.31 17.30 13.36 KRACHEM 5.40 10.20 5.40 3.55 PEKAO 175.50 -0.68 196.50 153.00 not react to the news. This two percent. TP disappoint- JAGO 0.80 9.59 1.90 0.64 PZU 371.20 -0.75 417.50 326.00 disappointed investors, send- ed with its earnings report, ing stocks downwards. although investors are wait- Bottom 5 Closing % change (week) 52-week high 52-week low Bottom 5 Closing % change (week) 52-week high 52-week low Raw materials and oil ing for a dividend of z∏.1.5 ANTI 2.01 -12.61 4.09 1.41 KGHM 184.50 -6.77 200.30 88.20 companies suffered the most. per share. ● RAINBOW 6.48 -9.12 9.39 6.07 LOTOS 44.91 -6.42 49.42 28.05 SONEL 6.78 -8.87 7.94 6.15 GETIN 14.13 -5.48 15.29 9.35 WARFAMA 1.65 -8.84 2.18 1.49 PKNORLEN 52.60 -4.88 57.90 35.48 EUROFAKTR 3.73 -8.80 6.82 3.69 POLIMEXMS 3.33 -4.31 4.84 3.33 Currency report Other indices Euro halts its mWIG40 2,939.43 (May 5 closure) sWIG80 12,838.01 (May 5 closure) Change for the week: 0.25% 52-week high: 2,987.72 Change for the week: -0.49% 52-week high: 12,932.00 appreciation Change year to May 5: 4.69% 52-week low: 2,361.69 Change year to May 5: 4.81% 52-week low: 10,980.45 Adam Narczewski, X-Trade Brokers Dom Maklerski SA 3,000 13,000 As the week progressed it due to the US’s non-farm 2,980 12,900 seemed as if nothing inter- payrolls publication, which esting would happen on the turned out to be much better 2,960 12,800 currency market, until than expected (244,000 jobs 2,940 12,700 Thursday, and the European added against a 187,000 fore- Central Bank’s interest rate cast). The EUR/USD fin- 2,920 12,600 decision. The ECB left inter- ished the week at $1.4550, 2,900 12,500 est rates unchanged, but in a above the $1.45 psychologi- statement, president Jean- cal level. 05.04 06.04 07.04 08.04 11.04 12.04 13.04 14.04 15.04 18.04 19.04 20.04 21.04 26.04 27.04 28.04 29.04 02.05 04.05 05.05 05.04 06.04 07.04 08.04 11.04 12.04 13.04 14.04 15.04 18.04 19.04 20.04 21.04 26.04 27.04 28.04 29.04 02.05 04.05 05.05 Claude Trichet implied that Due to a lack of macro- an interest rate rise is unlike- economic news from the ly to take place before July. local economy, the z∏oty NewConnect 58.71 (May 5 closure) WIG-Banki 7,239.11 (May 5 closure) Change for the week: -0.36% 52-week high: 64.09 Change for the week: -1.06% 52-week high: 7,387.49 Reaction on the danced to the music played Change year to May 5: -7.41% 52-week low: 54.64 Change year to May 5: 3.98% 52-week low: 5,751.39 EUR/USD market was by global markets. The risk instant, with the main cur- aversion that followed Mr rency pair tumbling from Trichet’s words helped push 60.0 7,400 $1.49 all the way to $1.45 by the main z∏oty pairs to their

59.4 7,340 the end of the day. The US three-week highs (EUR/PLN dollar also gained due to a to z∏.3.93 and USD/PLN to 58.8 7,280 disappointing US unemploy- z∏.2.73). ment claims report, which The good news from the 58.2 7,220 led capital to flow into safer US labor market also helped 57.6 7,160 instruments denominated in the z∏oty bounce back the greenback. against the euro, while a 57.0 7,100 On Friday, markets expe- stronger dollar aided the 05.04 06.04 07.04 08.04 11.04 12.04 13.04 14.04 15.04 18.04 19.04 20.04 21.04 26.04 27.04 28.04 29.04 02.05 04.05 05.05 05.04 06.04 07.04 08.04 11.04 12.04 13.04 14.04 15.04 18.04 19.04 20.04 21.04 26.04 27.04 28.04 29.04 02.05 04.05 05.05 rienced increased volatility USD/PLN. ● SOURCE: WSE currency rates

4.0 PLN-EUR 3.0 PLN-USD 5 PLN-GBP 3.5 PLN-CHF 0.10 PLN-RUB 3.5 PLN-100JPY 3.9353 3.9376 3.9322 3.9366 3.9406 3.9600 0.0964 0.0971 0.0969 0.0972 0.0970 0.0982 4.4214 4.4215 4.4237 4.3687 4.3605 4.4652 2.6504 2.6501 2.6541 2.6499 2.6458 2.7270 3.2506 3.2538 3.2561 3.2706 3.2967 3.3943 3.0385 3.0533 3.0546 3.0790 3.0885 3.1236

3.5 2.5 4 3.0 0.08 3.0 28.04 29.04 02.05 04.05 05.05 06.05 28.04 29.04 02.05 04.05 05.05 06.05 28.04 29.04 02.05 04.05 05.05 06.05 28.04 29.04 02.05 04.05 05.05 06.05 28.04 29.04 02.05 04.05 05.05 06.05 28.04 29.04 02.05 04.05 05.05 06.05 SOURCE: NBP MAY 9-15, 2011 BUSINESS COMMUNITY www.wbj.pl 29

Chambers of Commerce Corner News BPCC revamps website The supporting sponsors were Kraft Foods, The British Polish Chamber of Commerce Royal Unibrew and Avon. Warsaw Business has updated its website. New graphics and Journal was a media patron of the event. “friendly navigation” have been added, while user content now plays a more prominent AmCham’s Wancer honored role. by President Komorowski Members are able to contribute their own Polish President content to the site, while a member-only sec- Bronis∏aw Ko- tion allows personalized access and wider morowski award- inter-member communication. ed AmCham BPCC portal: www.bpcc.org.pl chairman Joseph Wancer with the AmCham’s US investment mission Krzy˝ Kawalers- The American Chamber of Commerce in ki Orderu Od- Poland will carry out a mission to the US this rodzenia Polski month, to meet with companies seeking busi- for his work in ness development opportunities in Europe. helping to mod- The delegation, which includes members ernize Poland’s of AmCham’s board of directors as well as banking sector. representatives from the Polish Ministry of The award Economy, will visit Fort Worth and Dallas, was given at the

Texas from May 12-13 and then Boulder and OF WIKIMEDIA COMMONS COURTESY request of the Denver, Colorado from May 16-17. Polish Bank Both locations are major US business hubs Association for Mr Wancer’s work over the and play host to companies which have not yet past two decades. It was presented at the “been addressed by trade, investment and same time as the Polish Bank Association’s information missions” from Poland, 20th anniversary. AmCham wrote in a press release. “I am proud to accept this great honor. The aim of AmCham’s mission is to identi- It is my reward for many years of hard work fy and build relationships with innovative, in helping to develop the banking sector. It growth-oriented companies which are seeking will also provide motivation for more to enter the European market or to build work,” Mr Wancer said when he received investment platforms. the accolade. ● Ensuring that these companies are aware of the advantages Poland offers is a critical first step in developing further trade and busi- ness in the future, AmCham wrote. The delegation will focus on the key eco- nomic advantages of investing in Poland and will highlight the country’s importance as a strategic location which can provide a possible gateway to other markets in Central Europe.

AmCham business mixer The American Chamber of Commerce in Poland held a business mixer in the Grand

Ballroom of the Sofitel Warsaw Victoria OF MSZ/FLICKR COURTESY Hotel on April 14. President Komorowski

Upcoming events

Mr Fraser, on issues related to Poland’s EU presidency and on other topics such as cross- border trade services.

Date and location: May 16, 6:30 pm at the Hil- ton Hotel, Warsaw Polish McMasters 2011 AmCham and the Ronald McDonald Foundation will hold the 9th Polish McMasters 2011 – a charity golf event.

In addition to golf there will also be an auction of artwork by patients from the Children’s Hospital in Warsaw. All proceeds from the event will go to a national program aimed at providing free ultrasound tests for children.

The participation fee is z∏.400 per person.

COURTESY OF CITY LONDON COURTESY Date and location: May 27, at the Lisia Polana Lord Mayor to visit Warsaw Golf Club, Pomiechówek The Lord Mayor of the City of London, Alder- Please RSVP to [email protected] man Michael Bear, and Stuart Fraser, chairman or call 22 833 0830 ex.15. of the Policy & Resources Committee at the City of London, will be guests of honor at the Innovative supply chain solutions seminar British Polish Chamber of Commerce’s (BPCC) Scandinavian-Polish Chamber of Commerce Grand Business Dinner. members are invited to take part in a seminar During the evening, which aims to promote the dedicated to innovative supply chain solutions. financial activities of the City of London, the Lord Mayor will answer members’ written Date and location: May 18, 3:30 pm , Reda, questions, in addition to speaking, alongside Tricity, www.spcc.pl 30 www.wbj.pl ARTS & CULTURE MAY 9-15, 2011 Museums galore

Night of the Muse- kosher catering. ums You can expect May 14-15 mobile animations Various locations and science experi- around Warsaw ments at the Coper- nicus Centre (ul. Originating in Berlin Wybrze˝e KoÊ- in 1997, the Night of ciuszkowskie 2), the Museums con- while the National cept has been export- Museum, mean- ed successfully to while, will be offer- over 120 countries. ing the last chance Running in Poland to see a papyrus since 2003, the idea scroll – the oldest could not be simpler: item in their archive.

keep Warsaw’s muse- OF ART/JERZY SABARA GALLERY NATIONAL OF ZACHE¢TA COURTESY But that’s just ums open for a whole Zach´ta National Gallery of Art the tip of the ice- night, and allow berg. For a full pro- everyone to visit for free. The been organized for your enjoy- gram navigate to the (Polish initiative has since become one ment. Running from 7 pm to 1 language only) website. Prac- of the most popular cultural am, these include a film and tically all museums will be par- enterprises in the city. audio-visual performance at ticipating, and pulling out the The freebies don’t end the Chopin Museum (ul. stops to out-do each other. there: linking the museums Okólnik 1), and a concert from On top of that, there’ll be together will be a set of buses WEF.LIVE.LAB at Zach´ta guided walking tours of Praga traveling from venue to venue, (pl. Ma∏achowskiego 3). The and the Old Town, concerts in

at no charge. yet-to-open Museum of the ¸azienki, and a bike ride in OF CEZARY P/WIKIMEDIA COMMONS COURTESY You won’t be getting the History of Polish Jews (pl. honor of Marie Sk∏odowska- standard museum experience Bohaterów Getta) will be Curie. ● either. A set of one-off events, holding a “get to know us” day For more information: exhibits and concerts have also with film screenings and www.noc-muzeow.pl Chopin in the park

Inauguration of the Chopin Concert of Masters,” the event phone, Roger King, Randy Concerts in ¸azienki will take place at 8 pm under Brecker, W∏odek Pawlik, Pawe∏ Chernobyl’s ghost town May 14 the famous statue of the master Panta and Cezary Konrad. ● Chopin Statue, ¸azienki Park, himself. Booked to perform are Street of Enthusiasts ul. Agrykoli 1 ex-Genesis guitarist Steve For more information: May 9-19 Hackett, John Hackett on saxo- www.lazienki-krolewskie.pl Dom Spotkaƒ z Historià The Chopin Concerts in ul. Karowa 20 ¸azienki Park, a staple of War- Content provided by the saw summers since 1959, are Warsaw Insider. For th Marking the 25 anniversary the oldest annual outdoor more information on of the Chernobyl disaster is an event in the city. The inaugura- culture and enter- exhibition telling the story of tion of this year’s series takes tainment in Warsaw this month, the city of Prypiat. Construct- place on the eve of this year’s pick up the May issue. ed in 1970 for the workers of Museum Night. Titled “The the Chernobyl power plant, the city was subsequently Museums, galleries and venues in Warsaw abandoned after the disaster in 1986, and is now a ghost Centre for Contemporary Green Gallery Simonis Gallery town. The exhibition features Art at Ujazdowski Castle ul. Krzywe Ko∏o 2/4 ul. Burakowska 9 ul. Jazdów 2 www.greengallery.pl www.simonisgallery.com Soviet posters, photographs by www.csw.art.pl Robert Polidori, Andrej Kre- Katarzyna Napiórkowska State Archaeological menczuk and Sergey Nechaev, Czarna Gallery Art Gallery Museum in Warsaw ul. Marsza∏kowska 4 as well as poetry by Lina ul. Âwi´tokrzyska 32, ul. ul. D∏uga 52 (Arsena∏) www.czarnagaleria.art.pl Krakowskie PrzedmieÊcie 42/44 www.pma.pl Kostenko. ● and Old Town Square 19/21 For more information: Galeria 022, DAP, Lufcik www.napiorkowska.pl ul. Mazowiecka 11a State Ethnographic Museum www.dsh.waw.pl COMMONS COURTESTY OF TIMM SUESS/WIKIMEDIA www.owzpap.pl Królikarnia National Gallery ul. Kredytowa 1 ul. Pu∏awska 113a www.ethnomuseum.website.pl Galeria 65 www.krolikarnia.mnw.art.pl ul. Bema 65 Historical Museum Book fair joins with comic festival www.galeria65.com Le Guern Gallery of Warsaw ul. Widok 8, Old Town Square 28-42 nd Galeria Appendix 2 (Praga) www.leguern.pl www.mhw.pl 2 Warsaw Book Fair & in the line-up here, as do over the book fair with the comic ul. Bia∏ostocka 9 Festival Comic Warsaw 200 domestic and internation- festival. Guests include Tony www.appendix2.com Museum of Independence History Meeting House Aleja SolidarnoÊci 62 May 12-15 of Warsaw al authors. The fair will Sandoval and Alfonso Zapico, Galeria Asymetria www.muzeumniepodleglosci.art.pl Palace of Culture include a special forum on new who’ll premiere his latest ul. Nowogrodzka 18a ul. Karowa 20 www.dsh.waw.pl and Science technologies and a special comic at the festival. ● www.asymetria.eu National Museum in Warsaw Pl. Defilad 1 Al. Jerozolimskie 3 area for children’s books and Galeria Foksal www.mnw.art.pl Warsaw Philharmonic Seminars, conferences, work- young readers. For the first For more information: ul. Foksal 1-4 ul. Jasna 5 shops and exhibitions feature time, the event will combine www.targi-ksiazki.waw.pl www.galeriafoksal.pl Polish National Opera at www.filharmonia.pl Teatr Wielki Galeria Milano Pl. Teatralny 1 Warsaw Rising Museum Rondo Waszyngtona 2A (Praga) www.teatrwielki.pl ul. Grzybowska 79 www.milano.arts.pl www.1944.pl Home is where the habitation is Pracownia Galeria Galeria Schody ul. Emilii Plater 14 Wilanów Palace Museum Bartosz Mucha ul. Nowy Âwiat 39 www.pracowniagaleria.pl the visual arts, architecture habitation, with the exhibition www.galeriaschody.pl and Wilanów Poster 52 Lazy Weeks, Museum and design. “Para-architec- including his exciting take on Rempex Art and Para-architecture Galeria XX1 ul. St Kostki Potockiego 10/16 ture” is an undertaking that furniture, portable homes and Auction House May 14-June 26 Al. Jana Paw∏a II 36 ul. Karowa 31 www.milanow-palac.pl deals with, in a broad sense, design solutions and connec- www.postermuseum.pl Zach´ta National Gallery of Art www.galeriaxx1.pl www.rempex.com.pl the question of the home – a tions. Runs until June 26th. ● pl. Ma∏achowskiego 3 place synonymous with safety Galeria Zoya Royal Castle Zachęta National Art Gallery ul. Kopernika 32 m.8 Pl. Zamkowy 4 Pl. Ma∏achowskiego 3 This exhibition by Bartosz and warmth. Here, the author For more information: www.zoya.art.pl www.zamek-krolewski.com.pl www.zacheta.art.pl Mucha blurs the line between creates alternative forms of www.zacheta.art.pl/en/ MAY 9-15, 2011 LAST WORD www.wbj.pl 31

Tech Eye Something wicked this way swimmeth

Summer is just around the corner, new chemical compound which The Ultra 300X boasts a 300- The Ultra 300X retails for knots and a streamlined profile that and that means Techeye is getting causes all children within a three horsepower, supercharged, liquid- around $14,499; beer sold separate- wouldn’t look out of place in a ready for beach season. We’ve mile radius to bark like seals for an cooled, inline four-cylinder engine. ly. James Bond film (unless Roger already picked up a brand new hour, nothing brings the “A-game” It’s also got If you’re looking to impress the Moore was involved – then it would mankini, but we still need to gain a like summer gadgetry. With a 20.6- beach crowd with something less look out of place). The Wallypower few pounds in the pectoral region, that in mind, here are a gallon crotch-rockety, you might have a 118 also comes with lots and lots of and of course we’ll need to find a few items which will fuel tank, gander at Wally pillows, presumably because the roll of quarters. There are few liven up the Yachts’ Wally- insanely rich enjoy a good pillow things less impressive than an ill-fit- water- power 118 fight now and again. ting mankini. superyacht Finally, if you’d like to slip into But wardrobe is only half the something a little more sub- battle when it comes to having a mersible, we’d suggest the AS-2 successful summer. Another quar- Scooter from Aqua Star ter is waxing, and in Techeye’s (www.aquastarscooters.com). case that involves the ear This is a two-person, “wet” sub and upper back regions. A (meaning you should leave your strategic waxing can mean phone and wallet at home) with an the difference between glory operating depth of up to 40 ft (12 and ignominy – in our experi- m) and a battery that lasts around ence, women find it hard to resist a 2.5 hours. Don’t expect your oxygen well-groomed man, particularly if to last that long, though, particular- his back has a little patch of fur in front (www.wally.com). On ly if your passenger is a heavy the shape of an adorable Pokémon this year. COURTESY OF KAWASAKI the downside, it costs around $18.5 breather. character. First there’s enough storage million; on the upside, it’s the per- Price is unknown as yet, but we’d (Dear Wife – if you’re reading the Jet Ski Ultra 300X, which space for a couple of six-packs and fect environment to show off a recommend having at least $10,000 this, we deny everything.) Kawasaki claims is “the most pow- “a throttle lever designed to pre- bespoke mankini. nearby before even contacting The final, crucial element that erful Jet Ski ever built” (www.kawa- vent finger fatigue.” In other words, What do you get for $18.5 mil- Aqua Star. And one more thing to makes a summer great? Technolo- saki.com). If you’re into water this is the perfect gift for the weak- lion? Approximately 118 ft (36 m) keep in mind – if you do buy an AS- gy, of course. Whether it’s the latest sports, this monster will moisten fingered, alcoholic adrenaline of floating paradise. The vessel has 2, you’d better get used to Yellow NASA-designed waterwings or a your eyes with glee. junkie in your life. three cabins, a top speed of 60 Submarine jokes. ● COURTESY OF WALLY YACHTS OF WALLY COURTESY STAR OF AQUA COURTESY

Ever engaged a secret agent in a pillow fight aboard a superyacht? Let us know: [email protected]

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Nowa La Boheme Restaurant at the National Theatre is an elegant place for business lunch, a prestigious gathering of friends or an intimate dinner for two.

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Plac Teatralny 3, 00-077 Warszawa Dział sprzedaży +48 (22) 8268275 / Restauracja +48 (22) 9620681 www.laboheme.com.pl www.facebook.com/NowaLaBoheme