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

MMaarrrriiaaggee ooff ccoonnvveenniieennccee˚abka, the top frog in Poland’s convenience store

market, is being sold. And Tesco’s not the buyer 5

Since 1994 . Poland’s only business weekly in English

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The search is onThe economy is up, wages

are rising and people are

looking for new jobs. How

many of them work at your

company? 12-13

LLiibbyyaa sshhaakkeess mmaarrkkeettssThe uprising in Libya has spooked Polish

businesses and sent oil prices north 3

MMaarrrriiaaggee ooff ccoonnvveenniieennccee˚abka, the top frog in Poland’s convenience store

market, is being sold. And Tesco’s not the buyer 5

LLiibbyyaa sshhaakkeess mmaarrkkeettssThe uprising in Libya has spooked Polish

businesses and sent oil prices north 3

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48-97

Telecoms giant TP and

broadcaster TVN have

reported major profit dives

Labor Minister Jolanta

Fedak talks jobs,

retirement and society

A profanity-filled

comic about Chopin has

embarrassed the gov’t

News . . . . . . . . . . . . . . . . . . . . . . .2-4

Industry News . . . . . . . . . . . . . . .5-6

Listed Firms . . . . . . . . . . . . . . . . . . .7

Interview . . . . . . . . . . . . . . . . . . . .8-9

Politics . . . . . . . . . . . . . . . . . . . . . .10

Opinion . . . . . . . . . . . . . . . . . . . . . .11

Cover Story . . . . . . . . . . . . . . . .12-13

Markets . . . . . . . . . . . . . . . . . . . . . .14

Lokale Immobilia . . . . . . . . . . .15-18

Business Environment . . . . . . . . .19

The List . . . . . . . . . . . . . . . . . . . . . .20

Arts & Culture . . . . . . . . . . . . . . . .22

Last Word . . . . . . . . . . . . . . . . . . . .23

In this issue

REAL ESTATELokale Immobilia

• Immobel’s purchase

• Ronson’s projects

• Panattoni interview

15-18

Book of Lists 2011

debuts this week at the

annual Gala

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Investing in Poland 2011 is available now!

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

We have also launched a new website for investors!For investment news and analysis, visit: www.investinginpoland.wbj.plpresents

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BulgariaRomaniaUnited Kingdom

GermanyPolandEU27

Q4Q3Q2Q1

FEBRUARY 28 – MARCH 6, 2011NNEEWWSS2 www.wbj.pl

Poland willing

to help

North African

immigrantsPolish Minister of

Interior and

Administration Jerzy

Miller has said Poland

could help immigrants

staying in countries

located in the south of

Europe. “Poland is

ready to send both

equipment and human

support,” he explained,

adding that significant

resources will be

needed. However,

countries in need will

have to formally request

aid from Poland first.

Germany

proposes

new route

to ÂwinoujÊcie

Germany’s Ministry of

Transport wants to

create a new approach

for sea vessels coming in

to the Polish port of

ÂwinoujÊcie,

Rzeczpospolita reported.

The proposal stands as

an alternative to moving

the Russian-German

Nord Stream gas

pipeline deeper, which is

Warsaw’s proposal.

According to the paper, if

the new approach were

adopted, it would add

another 30 minutes to

the voyages of most

ships coming into the

port. The worry remains,

however, that the

construction of the

pipeline could disrupt

the safe passage of ships

with a large draft. The

Polish Ministry of Infra-

structure suggested the

pipeline be moved down

to the seabed, so that the

largest vessels using the

port – currently with

drafts of 17 meters –

could still be

accommodated.

Germany stands opposed

to the proposal.

Poland

expresses

quake

condolences

Both President

Bronis∏aw Komorowski

and Prime Minister

Donald Tusk expressed

their condolences over

the earthquake that

struck New Zealand last

Monday. On behalf of the

Polish people and the

Polish government, they

offered their sympathy

to New Zealand’s

government, as well as

to the families of the

victims. ●

Advanced PR ..............................15

América Móvil ..............................5

Apax..............................................5

Apteka pod Ró˝à ........................18

Aqua Power System Japan........23

Asbis Enterprises ......................14

Asseco Poland............................20

Aster ............................................5

Athenasoft ..................................20

Atlas Estates ..............................17

Austrian Airlines ........................19

Axle & Manufacturing................17

Bain ..............................................5

Biuro Projektowania

Systemów Cyfrowych ................20

Blackstone ..................................5

Blue Ocean Investment Group ..18

BOIG Project Management........18

BOIG Property Consulting ........18

British-Polish Chamber of

Commerce..................................13

Budimex NieruchomoÊci ..........16

CBOS ..........................................10

CCC ............................................18

Centrum Development &

Investments................................15

Cersanit ......................................18

CEZ ............................................14

Colliers International ................19

ComArch ....................................20

Cushman & Wakefield ........15, 19

Damco Poland............................18

Deloitte Business Consulting....19

Deutsche Bank ............................5

Dipservice ..................................16

DM WZ WBK ................................3

DPTG ............................................7

e-Muzyka......................................7

Eastbridge Group ......................15

Echo Investment ........................18

Elektrobudowa ..........................15

Elstar Oils ..................................14

Empik Media & Fashion ............15

Euro-Invest ................................15

Ferro ............................................6

French Chamber

of Commerce and Industry........19

Gastel ˚urawie ..........................14

Gazprom ....................................12

Getin Holding ..............................7

Globe Trade Centre....................14

GM ..............................................19

GN Store Nord ............................7

Hays............................................12

Heuthes ......................................20

Hogart ........................................20

IDMSA ..........................................7

Immobel ....................................15

IMPAQ ........................................20

ING................................................5

Innovation Technology Group ....20

Inwestycja Grzybowska..............18

Jones Lang LaSalle ..................16

Juvenes Projekt ........................16

KGHM ....................................5, 14

KKR ..............................................5

Kulczyk Holding ........................15

Lena Lighting ............................14

Liberty Global ..............................5

Lot Polish Airlines ....................19

Lotos ............................................3

Lufthansa ..................................19

Macrologic..................................20

MakerBot Industries..................23

Mid Europa Partners ..................5

MOFO Architekci ........................16

Naftogaz ....................................12

NDI ..............................................3

Netia ............................................7

NFI Empik Media & Fashion ......7

Niezalezna.pl..............................10

Novaservis....................................6

OPEC ..........................................14

Opoczno......................................18

Optimus......................................14

Oracle Polska ............................20

Orascom Telecom ........................5

Orlen ........................................3, 5

Panattoni

Development Company..............17

PBG ............................................14

Pekaes........................................18

Penta Investments ......................5

Pepees........................................14

Peter nielsen & partners ..........19

Pfleiderer Grajewo ....................14

PGE ............................................14

PGNiG ................................3, 5, 14

PKN Orlen ..................................14

Plastic Omnium ........................18

PM Group ..................................17

Poczta Polska ..............................6

Polimex Mostostal ................3, 14

Polkomtel ....................................5

Polomarket ................................18

Praca.pl ......................................12

Pracuj.pl ....................................12

Pronox Technology ....................14

Providence....................................5

PZU ............................................14

Raiffeisen Bank..........................17

Remy Automotive Poland ..........17

Ronson Development ................15

RTV Euro AGD ............................18

Salon24.pl ..................................10

Salus International ....................18

SAS Institute ..............................20

SB Granit......................................3

Servier ........................................19

Shapeways ................................23

Sobieski Institute ........................3

Societe Generale Corporate &

Investment Banking ..................19

SPEC ............................................5

SWISS ........................................19

Sygnity ........................................20

Techmex ....................................14

Telefónica ....................................5

TeliaSonera ..................................5

Tesco ......................................5, 16

Teta ............................................20

TNS OBOP..................................10

TP............................................7, 14

TPG ..............................................5

TVN ..............................................7

Unibep ..................................16, 18

Unidevelopment ........................18

Vattenfall ......................................5

“Vide Studio” Wojciech Kurzak..18

Virtualo ........................................7

Vodafone Group............................5

Warfama ....................................14

Warsaw Stock Exchange ........6, 7

World Bank ................................19

Young Digital Planet ..................20

Zentiva PL ..................................19

ZUS ..............................................8

˚abka Polska ..............................5

˚yrardów Investment ................18

When should Poland hold itsnext parliamentary elections?That’s a tough question, itseems, as the country’s politi-cians can’t seem to agree.

According to the PolishConstitution, the presidentmust announce the electiondate to the Sejm and Senate nolater than 90 days before theend of their current term. Theelections themselves have to beheld on a non-working daywithin the 30-day period pre-ceding the end-of-term date.

Barring the unlikelyprospect of early elections, thatleaves Poland with four possi-ble election dates: October 9,16, 23 and 30. President Bro-nis∏aw Komorowski is nowweighing these options and isexpected to discuss the matterwith political parties, the gov-

ernment and certain NGOs.Having already consulted

with the National ElectoralCommission, Mr Komorowskihas ruled out October 30.That’s two days before AllSaints’ Day, a major holiday inPoland, and it might be difficultto find people to staff all thepolling stations.

Conversely, politicians ofthe Law and Justice (PiS) andthe Democratic Left Allianceparties have come out in favorof that date. For its part, theruling Civic Platform partyprefers the October 23 date.

Mr Komorowski alsorecently said that he was con-sidering holding elections overtwo days, an option providedfor under a new law adoptedlast December. Two days ofvoting would help increase

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

Only once has modernPoland seen two-day voting – inJune 2003, when Poles votedon EU accession in a referen-dum. Turnout in that referen-dum amounted to 58.85 per-cent.

The matter is still up fordebate, however, and someparties have expressed appre-hension concerning two-dayvoting. PiS politicians, forexample, suggested thatextended voting could increasethe likelihood of electionsilence violations.

Meanwhile, a recentSMG/KRC poll for Fakty TVNfound that just 22 percent ofPoles are in favor of two-dayvoting.

AAddaamm ZZddrrooddoowwsskkii

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

water this year

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

growth

z∏.526.8 million is how much Poland’s public broadcaster received

from TV subscriptions last year, compared to nearly

z∏.1 billion 10 years ago

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

2010

“Do you know what will happen when theseanimals see [those dancers]? ... A f—ing fag-

holocaust”The skinhead in “Chopin New Romantic” cautions Fredyryk Chopin against

bringing dancers into a prison (see story p.4)

Quote of the Week

Best of the blogs

WBJ.pl takes you on a tour of the blogs crowned byOnet.pl’s “Blog of the year” competition. Log on tofind out more about premier league of Poland’s blog-ging community.

On WBJ.pl

Numbers in the News

Company index

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1 CEEQA GALA & AWARDSEvent: 8th Annual CEEQA Gala. Annual industry

awards for business performance & achieve-ment in Central & Eastern European realestate in 2010. Preceded by Forum & PanelDebate GREEN DEBATE 2 Location: WarsawMarriott Hotel. www.cee-insight.com

1-5 CEBIT 2011Event: CeBIT 2011. Poland will be an official partner

of the event in 2012. Location: Hannover,Germany. www.cebit.de/home

3 BOOK OF LISTS GALA AND WBJ AWARDSEvent: Warsaw Business Journal launches the 16th

edition of its annual Book of Lists rankingpublication, and hands out the prestigious

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

3 ACCESS MBA TOUR Event: Access MBA Tour in Warsaw. Location:

Mamaison Hotel Le Regina, Warsaw.www.accessmba.com

8-11 MIPIM & MIPIM HORIZONSEvent: Real Estate Event for Professionals. Location:

Cannes, France. www.mipim.com

9-13 ITB BERLINEvent: Travel Trade Show. Location: Messe Berlin,

Germany. www1.messe-berlin.de

March

DATELINE

Parliamentary election date

IN THE SPOTLIGHT

Figures in focus

Concrete figures

Construction output (% change on previous quarter), 2010

Source: Eurostat

FEBRUARY 28 – MARCH 6, 2011 NNEEWWSS www.wbj.pl 3

The Libya crisis and Poland’s economy

LLiibbyyaa uunnrreesstt ccrreeaatteess sslliippppeerryy ssiittuuaattiioonnOil and currencytrading are being hitby shock waves fromLibya

Continuing unrest and vio-lence in Libya, together withsignals from other oil produc-ers, sent the price of Brentcrude up to $120 last week.The spike was brief, but highoil prices spell trouble for thePolish economy.

Rumors that embattledLibyan leader Muammar al-Gaddafi could sabotage thecountry’s oil infrastructurehave the market on edge,although Saudi Arabia hasoffered assurances that it cancover a supply shortfall.

Polish supplies are notdirectly threatened, since thecountry’s principal refiners –Lotos and Orlen – get most oftheir oil from Russia. Howev-

er, rising oil prices threaten topush up Poland’s inflation

rate, making investors morerisk averse.

At the same time, in-vestors seeking stability have

pushed the Swiss franc up, asituation which could hurt themany Polish homeownerswith mortgages denominatedin that currency. Last Fridaythe Swiss franc stood atz∏.3.10, compared to an aver-age exchange rate of z∏.3.05for January. The average forFebruary 2010, meanwhile,was z∏.2.73.

The situation is not neces-sarily dire, however. Therewere signs at the end of lastweek that the franc could beweakening slightly againstworld currencies, for example.And Pawe∏ Burzyƒski, an ana-lyst at DM WZ WBK, was rel-atively sanguine regarding oilprices in general.

“The market has balancedout recent events,” he said,adding that he expected oil tobe trading at $100 a barrel intwo weeks’ time.

Mr Burzyƒski foresees con-sequences for Poland, never-theless. “The Polish economywill be hit twice,” he said first,due to the depreciating z∏otyand second, due to theincreased cost of importing oil.This will “definitely increaseinflationary pressure,” headded, and it will lead to“timid growth expectations.”

As WBJ went to press, thesituation in Libya appeared tobe growing more unstable.The government had lost con-trol of many cities and, accord-ing to numerous reports, themilitary and police were firingon protestors.

Polish citizens had beenadvised to leave the countryand companies such asPGNiG and Polimex Mos-tostal had pulled their foreignemployees out.

AAlleexxaannddeerr HHaayyeess

Roads & Euro 2012

A4 contract terminatedThe highway won’t beready for Euro 2012

Poland’s General Directoratefor National Roads and Motor-ways (GDDKiA) has brokenoff its contract with a consor-tium comprising Poland’s NDIand Macedonian SB Granit.The firms were to build a 21-km section of the A4 highway.

The termination of thecontract means that the roadwon’t be open for traffic intime for the Euro 2012 soccerchampionships, which Polandwill co-host with Ukraine.

Marcin Hadaj, a spokesper-son for GDDKiA, told TVN24that the termination was neces-sary due to delays which haveplagued construction. The

fault lies on the side of the con-tractor, GDDKiA said on itswebsite, listing specific areaswhere it says the consortiumhas not lived up to its duties.

According to the roadsauthority, NDI and SB Granitare responsible for a nine-month delay in constructionon a bridge and for a four-and-a-half month delay in roadbuilding. Moreover, at thehalfway point in the construc-tion schedule, work is reportedto be 17 percent complete.

GDDKiA also noted that ithad paid the consortium z∏.87million for the work it haddone so far. This is comparedto the z∏.271 million which hadbeen earmarked for construc-tion by this stage.

The authority plans toimpose a penalty on the con-sortium equal to 10 percent ofthe contract’s total value.

NDI and SB Granit jointlyinformed GDDKiA of theirplan to pull out of the contractas early as February 9. Theyattributed the delay to lastyear’s flooding, mistakes in theconstruction design and toarchaeological research con-ducted by GDDKiA on part ofthe highway.

According to the Concilia-tion Commission, which han-dled the disagreement betweenGDDKiA and the consortium,both sides are at fault. Neitherparty has accepted the blame,however, and both plan to takethe matter to court. NNKK

Emissions trading

Poland looks to opt out of EUemissions allocation systemThe country wouldrather distribute freepermits in exchangefor environmentallyfriendly investmentPoland, Germany and the UKhave decided to create theirown platforms for auctioningcarbon emissions allowancesstarting in 2013.

The European Commissionhas long advocated abolishingseparate national allocationplans in favor of a commonplatform. But member statesretain the possibility to opt outof the EU-wide scheme.

For Poland and its heavilycoal-dependent energy sector,

it’s an attractive option. Opt-ing out will enable the govern-ment to distribute free per-mits to selected power plantsin return for guarantees thatthey invest the same amountsin reducing the pollution theycreate.

This, explained RobertZajdler, an energy expert atthe Sobieski Institute, a thinktank, would be a simpler solu-tion than selling permits to theinstallations and then redis-tributing the money to thesame installations to aid envi-ronment-friendly investment.

However, it’s still uncertainwhether Poland will be allowedto opt out. Member states that

want to opt out must submit alist of the pro-environmentinvestments they plan to fundwith the free allowances bySeptember. The EC will thenjudge whether the plans meetpan-European standards.

Polish energy companieshave complained that uncer-tainty concerning the nextemission-trading scheme(2013-2020) is discouraginginvestment. Meanwhile, thePolish energy sector needs anestimated €200 billion ininvestment over the next 10years to increase its capacityand carry out necessary repairs,according to Rzeczpospolita.

AAlliiccee TTrruuddeellllee

Afghanistan

GGoovv’’tt ddiissaaggrreeeemmeennttoovveerr ttrroooopp ppuulllloouutt

The president wants tostart bringing Polishtroops home fromAfghanistan in 2011

President Komorowski has stat-ed that Poland should beginwithdrawing troops fromAfghanistan in 2011.

“This is consistent with earli-er declarations at the NATOmeeting in Lisbon in Novemberlast year,” Stanis∏aw Koziej,head of the National SecurityBureau (BBN), said in a state-ment.

However, both the head ofthe Defense Ministry and mem-bers of the General Staff haveexpressed doubts.

Defense Minister BogdanKlich commented that anyreduction in the number of sol-

diers would only take place inthe autumn and winter, whenthe Taliban are less active,according to Gazeta Wyborcza.The daily also quoted GeneralStaff Colonel Andrzej Wia-trowski as saying that with-drawal would not begin before2012.

According Mr Koziej, thewithdrawal operation is to bedivided into three stages. Therewill be a gradual troop with-drawal, with the Polish missiongiving up its responsibility forthe Afghan province of Ghazniin 2012.

In 2013-2014, Polish soldiersare to take part in a trainingmission while also maintainingcombat readiness to supportAfghan and coalition forces.Final withdrawal is set for 2014,

but Poland would still remainready to assist Afghans withmilitary training and technicalcooperation.

Meanwhile, the media havereported that Polish troops inAfghanistan have detainedSana Mohammad, one of themain Taliban commanders inthe Andar district, east ofGhazni Province. He is suspect-ed of recruiting fighters outsideAfghanistan, training suicidebombers and collecting fundsfor the Taliban, DariuszKudlewski, a spokesperson forthe Polish mission in Afghan-istan, told Gazeta Prawna.

The 2,600-strong Polishforce is part of NATO’s Inter-national Security AssistanceForce.

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Rumors that Gaddafi could sabotage Libyan oil infrastructure spooked markets

FEBRUARY 28 – MARCH 6, 2011NNEEWWSS4

Eastern

Partnership

summit moved

An international summit

involving leaders from

all 27 EU members and

the six Eastern

Partnership countries

which was to be held

near Budapest in May

will now likely be held in

Poland in October or

November during the

Polish presidency of the

EU Council. Hungarian

Foreign Minister János

Martonyi said that the

reasons for the change

of date and venue were

purely logistical.

Tunisia arrests

alleged priest-

killerTunisian authorities say

they have arrested the

alleged killer of Polish

priest Marek Rybiƒski.

According to officials,

the man accused of the

murder is a Tunisian

carpenter at the

mission where Father

Rybiƒski was found

dead. The priest, 34,

was found with his

throat cut in the garage

of a private religious

school in a suburb of

Tunis. ●

www.wbj.pl

“F—ing fag-holocaust”and prison riotintended to teachGerman kids aboutChopin?

A graphic novel about famedPolish composer FryderykChopin caused an internation-al stir last week when thebook’s use of graphic languagecame to the public’s attention.This in turn raised questionsabout why the Polish govern-ment had financed the bookand why it planned to distrib-ute it in German schools.

“Chopin New Romantic” isa 148-page anthology of sto-ries in both Polish and Ger-man. It was commissioned tocommemorate the Year ofChopin, whose events official-

ly came to an end in February.The most controversial tale

in “Chopin New Romantic”follows the composer as heprepares for a concert in amodern-day prison. His maininterlocutor is a skinhead pre-viously incarcerated in thefacility. “Why the f— is hestanding there?”, “where isthat p—y?”, “why the f— didyou bring them anyway?” and“f—ing fag-holocaust” areamong the profanity-strewnturns of phrase in the book.One scene shows the skinheadsnorting lines of white powder.The story ends in a prison riot.

The Polish Embassy inBerlin and the Polish ForeignMinistry spent €27,000 tocommission and print thegraphic novel. The Embassyconfirmed to TVN Warszawalast week that the comic bookwas meant to be used in Ger-man schools.

“Yes, as it’s a comic, wecame up with the idea that itwould be great to, for exam-ple, distribute it in schools forPoland Day,” a representativeof the Embassy stated. Thatperson also confirmed that thecomic had been printedalready, but that it was hold-ing the bulk of the print run.

“Chopin New Romantic”

was created by comic publish-er Kultura Gniewu. The firm’swebsite described it this way:“This unorthodox, sometimeselectric and provocativeapproach to the character ofFrederic Chopin creates notjust a completely new portraitof the famous Pole, but alsoshows the freedom and powerof comics as a medium.”

The company also des-cribes the graphic novel as “anexcellent accent to the end ofthe Chopin Year.”

ConsequencesThe government’s response to“Chopin New Romantic” tooka few days, but officials even-tually confirmed that it wouldbe destroyed and that discipli-nary action would be taken.

“The milk was spilled, thepublication was printed, as aresult it must be destroyed,”Deputy Foreign Minister JanBorkowski said at a press con-ference, adding that the maingoal was to prevent its distri-bution.

“We will take disciplinaryaction against those who couldhave, at the appropriate stage,held up the publication.”

However, the person bear-ing the greatest responsibilityfor the gaffe may well escape

punishment.“In reality it was a mistake

made by an employee at theEmbassy in Berlin,” ForeignMinister Rados∏aw Sikorskilater told Radio Zet. “Andthe one thing that I regret isthat I can’t fire that personfor making such a scandalous

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

Kultura Gniewu has an-nounced that it will return themoney it received from theMinistry of Foreign Affairs toproduce the publication.

EE BBllaakkee BBeerrrryy

Chopin controversy

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FM Sikorski regrets not being able to fire the culprit

The deadline to file prelimi-nary offers for telecommunica-tions operator Polkomtellapsed last week. Polkomtel isthe operator of Plus, Poland’slargest mobile network.

Polkomtel’s owners, includ-ing oil refiner Orlen, Britishmobile operator VodafoneGroup and copper minerKGHM, are looking to sell 100percent of the company’s stockbefore the end of H1 this year.The company has been valuedat around $5 billion.

A total of about 10 interest-

ed parties have submittedoffers, Bloomberg wrote, citingtwo unnamed sources close tothe deal.

TeliaSonera, a telecommu-nications provider well-knownin the Nordic and Balticregions, has made an indicativebid, Reuters reported, quotinga company spokesperson.

A number of private equityfirms also filed preliminaryoffers for the telecoms opera-tor. KKR, Apax, Bain andProvidence placed offersalongside joint bidders TPG

and Blackstone. Spain’s Tele-fónica has also submitted anoffer.

Representing the domesticmarket, Polish investor Zyg-munt Solorz-˚ak also filed anoffer, according to Rzecz-pospolita.

As WBJ went to press it wasunknown whether Carlos SlimHelú’s América Móvil orEgypt’s Orascom Telecom hadbid, although they have bothreportedly expressed interestin doing so in recent weeks.

GGPP

Bids pour in for Polkomtel

FEBRUARY 28 – MARCH 6, 2011 IINNDDUUSSTTRRYY NNEEWWSS www.wbj.pl 5

PGNiG has alreadyexpressed interest inthe Swedish utility’sPolish holdings

Swedish utility Vattenfall hashired several banks to help sellbusinesses valued at around€2.5-3 billion in “non-core”countries, unnamed sourcesclose to the matter told Reutersand Dow Jones Newswires.

The news agencies bothwrote that the state-owned util-ity has hired Deutsche Bank tooffload operations in Poland,Finland and Denmark.

Vattenfall spokesperson Ste-fan Mueller said he couldn’tcomment on the reports.

Deutsche Bank will report-edly work with ING to help Vat-tenfall sell its Polish assets.Sources told Reuters that thismay include a heat and powerplant in Warsaw and an electric-ity distribution network in thesouth of Poland, worth a total of€1.5 billion.

Vattenfall has been review-ing its assets since Septemberwith a view to eventually divest-ing itself of businesses in non-core countries. The utility wantsto increase profitability byrolling back 10 years of foreignexpansion and focusing on itsmost important markets inSweden, Germany and the

Netherlands.“This is not a decision

against Poland, but in favor ofmarkets which would allow forlarge growth,” said Mr Muller.

Polish gas monopolistPGNiG has already voiced itsinterest in Vattenfall’s Warsaw-based heat and power assets. Itis also interested in purchasingSPEC, the firm that operatesWarsaw’s heating network.

A final decision will be madeafter the appropriate analyses

have been conducted,Rados∏aw Dudziƒski, vice pres-ident of PGNiG, told Puls Biz-nesu. He added that the groupwould take a close look atSPEC and wait for an officialsales declaration from Vatten-fall before taking action.

PGNiG wants to invest inenergy and heat productionbased on natural gas – thegroup is the largest supplier ofthe resource in Poland.

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Sale of Vattenfall assets closer

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Private equity firm Mid EuropaPartners has signed an agree-ment to purchase conveniencestore chain ˚abka Polska fromPenta Investments.

Tesco inked a deal for˚abka’s Czech chain inDecember and the Britishretailer had been mooted as abuyer for the Polish assets aswell. The value of the transac-tion was not revealed, but arepresentative of Mid Europasaid that further details wouldbe made public in the nearfuture.

˚abka has grown sincePenta acquired it in 2007,adding 460 new stores over the

last three years and seeing itsprofitability increase by nearly40 percent. The company cur-rently operates over 2,450stores across Poland under the˚abka and Freshmarketbrands and booked revenues ofapproximately €650 million lastyear.

“We have been highlyimpressed with the ˚abkamanagement team’s trackrecord of delivering strongfinancial performance, whilemanaging rapid expansion inthe Polish retail market,” Zbig-niew Rekusz, a partner andhead Mid Europa’s Warsawoffice, said in a statement.

The transaction awaits theapproval of UOKiK, Poland’scompetition regulator. MidEuropa Partners appears tohave no direct investments inthe Polish FMCG market,however, so the regulator isunlikely to block the deal.

The firm is also in theprocess of selling one of itsother Polish assets, cable oper-ator Aster, to Liberty Global.

Mid Europa Partners is pri-marily engaged in Central andEastern European markets. Itmanages funds whose totalassets are valued at around€3.2 billion.

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Mid Europa Partners to buy ˚abka

FEBRUARY 28 – MARCH 6, 2011IINNDDUUSSTTRRYY NNEEWWSS6 www.wbj.pl

M&A

Poland’s Ferro closes in onCzech Republic’s Novaservis

If the takeover bidfails, shareholderscould benefit from adividend payout

Ferro, one of the largest bath-room and heating appliancefirms in Poland, has finishedconducting due diligence onNovaservis, one of the CzechRepublic’s biggest bathroomaccessories companies.

Ferro now expects toreceive a response to itstakeover offer from the Czech

company at the turn of Marchand April. Currently, negotia-tions between the two partiesare underway. Ferro has notdisclosed the price it offeredfor Novaservis.

Ferro’s president, AnetaRaczek, told WBJ that comple-tion of the takeover wouldprovide the company with “anopportunity for a significantstrengthening of its position inthe market.”

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

of supplies, logistics and cross-selling,” Ms Raczek added,predicting that these aspectsshould favorably influence thecompany’s financial results.

The company intends togenerate the money by issu-ing almost 10.5 million D-series shares. If new securi-ties were to be sold at z∏.10.49(its closing price on Friday,February 25), Ferro wouldgain approximately z∏.110million for the purpose ofacquiring Novaservis.

Ferro debuted on the War-saw Stock Exchange in Aprillast year. According to finan-cial results published on itswebsite, Ferro’s net profit afterthree quarters of 2010 amount-ed to z∏.10 million, with rev-enues of z∏.127 million.

The company’s presidentsaid that while full-year 2010was favorable for the compa-ny, its margins were nonethe-less hit by the global increasesseen in the price of raw mate-rials and by fluctuations in theexchange rates of foreign cur-rencies. Despite these set-backs, the company’s presi-dent expects last year’s full-year net profit to better 2009’snet profit, which amounted toz∏.10.7 million.

Asked if a dividend payoutis on the cards, Ms Raczekexplained that if the takeoverof Novaservis is successful,Ferro would be in favor ofretaining its cash. If the under-taking fails, however, theboard will recommend at theannual meeting that 50 per-cent of the company’s profitshould be devoted to payingout dividends to shareholders.

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Poczta Polska to layoff 5,000 employees

Poczta Polska, Poland’s pub-licly owned postal service, plansto lay off 5,000 workers by theend of October, media report-ed last week. In response to theannouncement, the labor unionSolidarity said it would picketgovernment offices in Poznaƒon March 2 and in Warsaw onMarch 16.

“We hope that there will bereal negotiations with the gov-ernment, which is the owner ofour firm,” Bogumi∏ Nowicki,president of the NationalCommunications Secretariatof Solidarity, told PAP.

“For the time being, we’renot talking about a strike,” headded.

The union also claims thatthe government is breakingthe law on mass redundan-cies, and is therefore consid-ering petitioning the prosecu-tor’s office.

The redundancies resultfrom Poczta Polska’s plans toliquidate 3,000 post officesacross the country. They are tobe replaced with sales pointslocated in gas stations andconvenience stores.

The changes are intendedto make the postal servicemore competitive in time for2013, when the market will beopened to other postal compa-nies from the European Union.

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FEBRUARY 28 – MARCH 6, 2011 LLIISSTTEEDD FFIIRRMMSS www.wbj.pl 7

Empik buys

e-Muzyka

NFI Empik Media &

Fashion purchased

61.49% of e-Muzyka for

z∏.7.6 million. Earlier,

Empik completed the

purchase of book e-store

Virtualo.

Getin Q4

profit soars

Financial group Getin

Holding’s Q4 2010 net

profit shot up by 223% y/y

to reach z∏.150 million.

For full-year 2010, Getin

Holding booked a net

profit of z∏.421 million, as

compared to z∏.276

million in 2009.

Foreign

investors fuel

WSEThe Warsaw Stock

Exchange is becoming

more attractive for

foreign investors. In

2010, they generated a

record 47% of the WSE’s

total trade according to

Rzeczpospolita. Analysts

say they were attracted

by new offerings – 34

new companies debuted

on the WSE and

generated trade worth

z∏.16 billion last year. ●

Netia to pay large

dividend on earnings?

Media

TTVVNN’’ss QQ44 pprrooffiitt ttaakkeess aa nnoosseeddiivvee

Poland’s second-largest fixed-line telecom, Netia, saw a fourthquarter 2010 net profit ofz∏.223.72 million, down from thez∏.255.09 million it made duringthe same period a year earlier.

Revenues amounted toz∏.394.5 million and its adjustedEBITDA came in at z∏.87.7 mil-lion. Thanks to the reversal ofearlier impairment charges,EBIT for Q4 2010 reachedz∏.231.3 million.

The company’s results wereconsistent with analysts’ fore-casts.

The only area of its resultsthat did not meet expectationswas the number of people sub-scribing to the firm’s broadband

services, which was 10,000 lowerthan the 700,000 the operatorhad promised. This has beenattributed to discounts offeredby rival TP.

Miros∏aw Godlewski, presi-dent of Netia, told Parkiet thatthe company is not expecting tocut prices by much this year,except those for 20Mb/s andfaster broadband.

Some analysts have suggest-ed that the reversal of earlierimpairment charges couldmean a z∏.510 million dividend.

However, CFO JonathanEastick disputed this. Instead,Netia will spend about z∏.150-200 million on dividends, hetold Parkiet. GGPP,, WWBB

The ad market isgrowing again, butTVN’s bottom linesuffered nonetheless

Media group TVN’s fourth-quarter 2010 net profitdropped by 93 percent y/y tostand at z∏.15.8 million, thecompany revealed in a report.

The result was significantlybelow forecast – analystspolled by Reuters had expect-ed the broadcaster to net z∏.60million compared to z∏.243million the year before.

High costs and the absenceof non-cash one-offs whichhad boosted its earnings a yearearlier combined to drag onTVN’s bottom line. The com-pany was also hit hard by theweakness of the z∏oty, whichincreased the value of costsand debt denominated in euroand dollars. As of December31, the company’s net debtstood at z∏.2.42 billion.

However, revenues drivenby advertising and pay TV,amounted to z∏.753 million, up11 percent year-on-year.

Ad revenue rose a full ninepercent in the fourth quarter

alone, hitting z∏.458 millioncompared to z∏.419 million ayear earlier, while revenuesfrom TVN’s ‘n’ digital plat-form jumped 20 percent fromz∏.119 million to z∏.143 million.The company said that pay TVgenerated more than half of itsfull-year revenue growth.

“We can expect an increasein the TV ad revenue marketthis year,” said Waldemar Sta-chowiak, an analyst at Ipope-ma Securities, adding that the

GDP growth expected forPoland will help to underwritethis growth.

“I expect the company’scustomer base to grow to900,000 by the end of the year,but it will be hard to reachEBITDA break-even,” he said.

The company needs to addaround z∏.70 million to itsearnings before interest, taxes,depreciation, and amortiza-tion to break even, he said.

GGaarreetthh PPrriiccee

Telecoms

TP sees net profit plummetRevenues also fell andcould drop further thisyear, the group haswarned

Telecommunications giant TPreported a 91.6 percent y/y fallin 2010 profits after beingforced to set aside a huge sumfor provisions against possiblelegal losses.

The group wrote in itsresults statement that netincome for the full yearamounted to z∏.108 million.

The result was markedlyworse than expected – analystsin a Reuters poll had predicteda net profit of z∏.155 million.

TP’s bottom line was hitbecause it was forced to setaside z∏.1.1 billion in provisionsfor claims made by DPTG, aunit of Danish telco GN StoreNord.

Revenues were also down,by 5.1 percent to z∏.15.7 billion,as the fixed-line segment con-tinued to contract and thegroup felt the effects of compe-tition.

“Revenues did not surpriseas we saw the devaluation of allthree segments,” said JakubViscardi, an analyst at IDMSA.He explained that the fixed-linesegment has been shrinking formore than three years, whilethe telecoms operator has had

to face additional competitionin the broadband market.

“[Moreover,] cable networkoperators delivered higherspeeds at more attractive pricesand alternative telecom Netiaalso had much more attractiveoffers during 2010,” he said.

For the fourth quarter, totalsales dropped 1.2 percent toz∏.3.96 billion as the group’sfixed-line business contractedby seven percent y/y. The groupdid, however, see z∏.2 billionfrom mobile services revenuesin Q4, a 6.4 percent y/yincrease, as it increased its cus-tomer base in this area by 4.5percent to 14.3 million over theyear.

CEO Maciej Witucki said ina webcast that TP’s fixed-linesales would continue to fall inthe face of competition fromrivals like Netia.

TP anticipates that its rev-enues this year will decline by2.0-4.5 percent this year, as theprices operators are able tocharge for calls to their mobilenetworks are slashed by themarket regulator.

“TP has work to do – Q42010 broadband net additionsshowed that competition fromNetia will remain hard,” saidIDMSA’s Mr Viscardi, addingthat the mobile segment is alsobecoming more competitive.

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TVN’s total ad revenue and net profit (in z∏. million),

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Ewa Boniecka: There is a pub-lic debate ongoing about thegovernment’s plan to reformthe pension system by redi-

recting a portion of salarycontributions from open pen-sion funds [OFEs] to theSocial Insurance Institution[ZUS]. As someone involvedin that reform, what’s yourview of the debate?Jolanta Fedak: The govern-ment has approved a compro-mise on the bill, which will notin any way dismantle theOFEs, but instead adjust someaspects of their activity.According to the proposal,during the next two years thecontribution which has so farbeen transferred to OFEs atthe level of 7.3 percent of asalary, will be reduced to 2.3percent. The difference will bemoved to special accounts inZUS, the state-supportedinsurance institution.

The bill is now undergoingconsultations and publicdebate. The ministers involveddirectly in dealing with thereform – of whom I am one –evaluated the present condi-tion of the OFE system. Andwe have no doubts that theOFE capital retirement sys-tem, which was introduced inPoland nearly 11 years ago,has many defects and needscorrections.

The main defects includeOFEs’ very high transactionaland operating costs, as well asthe way they gather and usethe financial reserves theyacquire. And the OFE sys-tem’s high operating costs areeffecting negatively our wholepublic finances and increaseour public debt. So this has tobe corrected, and in proposingto do so we are not an excep-tion among other countries.

In the present, difficult

financial situation in Europe,all members of the EU aredeliberating over how to lowertheir public debts. The majori-ty of them have also reducedtheir reserve levels. This hashappened in Lithuania, Latvia,Estonia, Slovakia and Hun-gary. They acknowledged thatthose reserves were too high inrelation to the macroeconomicsituation, which defines thelevel of public debt.

Yet the debate about OFEs isnot just an economic matter –it’s also political. Critics ofthe government’s proposalclaim that it will take realmoney from people who aresaving in private OFEs inexchange for political promis-es for pensions in ZUS.Nobody is taking money frompeople saving in OFEs. In anycase, it is only part of their sav-ings – the rest went to ZUS

anyway – and the high feespaid to OFEs do not guaran-tee adequate pensions in thefuture. And I consider it para-doxical that the present contri-bution level paid by clients toOFEs is so high in comparisonto other countries. For exam-ple, in wealthy Sweden, contri-butions to a similar privateretirement system are only atthe level of 2.5 percent.

Yet I do not want to arguein any way that the presentreform will cure our whole

retirement system. What I amsaying about the reform refersonly to OFEs, the capital[investment] part of the sys-tem. I am for opening theOFEs to include more finan-cial institutions and, as aresult, to offer to people a vari-ety of financial products and tomake the whole retirementmarket more competitive andefficient. And this could leadto better pensions in thefuture.

I am in favor of maintain-ing the duality of the retire-ment system, while developinga better mechanism for the co-existence of the OFE capitalpension system alongside thestate-controlled ZUS system.

Yet the most importantthing in reforming the systemis to take into account whatPoland can afford. In that con-text, the division of contribu-tions between OFEs and ZUSare, in the long run, a second-ary matter, because we all payfor the pension system nowand we will pay for it in future.

Do you view the presentdebate on OFE reform as ameans of dealing with thestate of Polish finances andthe need to reduce publicdebt, or more as a politicalconfrontation between thegovernment and opponents?I think that it has those twodimensions, the economic andthe political, but in my opin-ion it there is too much poli-ticking on the part of oppo-nents. Some of them use pop-ulist arguments involving thegovernment taking people’smoney, but this is not true. Itjust makes it more difficult to

Labor and Social Policy Minister Jolanta Fedakargues for reform of Poland’s retirement systemand claims that social and labor policies havebeen “satisfactory” despite budget difficulties

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“Nobody is taking moneyaway from people savingin open pension funds”

Pensions and labor

Fedak makescase for pension reform

explain to society the need forthe reform and, in my opinion,we in the government shouldmake greater efforts toexplain the essence of thereform better.

After all discussions are held,do you think the government’sOFE reform bill will beapproved by parliament inApril or May?I think that the bill will beapproved. We have a parlia-mentary majority and thecoalition government has beenfunctioning well for more thanthree years already. No othergovernment in the last 10 yearshas had such a comfortablemajority. So I expect that par-liament will approve our draftbill to reform the OFEs and itwill become law after the pres-ident signs it.

Given the difficulties faced bythe state budget, how are youhandling social policy?The condition of our statebudget is indeed difficult, sowe have to conduct a very cau-tious social policy. Yet even ina situation involving financiallimitations, the government’ssocial policy is being conduct-ed to a satisfactory standard.

Let me discuss some of theprograms. Every year we con-tribute z∏.550 million to feed-ing children at schools. In2009, the governmentincreased family benefits by 40percent.

In spite of budgetary diffi-culties, this year we have keptthe “becikowe” – the one-timez∏.1,000 allowance for mothersof newborn children. The gov-ernment has not loweredfinancing for other social pro-grams either, including aid forhomeless people, and we con-tinue to run the alimony pro-gram for children in situationswhere the collection of sup-port payments from one par-ent is not effective.

So I want to stress that thestate has not limited its socialpolicy. On the contrary: in adifficult financial situation, thestate’s obligations are greaterand our government isresponding to these [obliga-tions].

What is the main focus ofsocial policy right now?We are finalizing work on billswhich expand the forms ofchild care. One of these con-cerns the development of pro-grams for foster care for chil-dren, which would increase thenumber of foster families and

gradually allow the transfer ofchildren living in big, over-crowded state-run children’shomes to family-like sur-roundings.

An already-approved billconcerns changes to the organ-ization of nursery schools [forchildren between 10 weeks andthree years old – ed.]. Local gov-ernments are responsible forsetting up public nurseryschools – which are part of thehealth-care system, with all thestrict rules associated with it –and have had great difficulty infulfilling all the obligations. Asa result, only two percent ofcounties in the country have[public] nurseries.

Now, under the provisionsof the new bill, local govern-ments will have a free hand toorganize private care for smallchildren under three years of

age, so it will be easier forthem to fulfill this task. Fromnow on they can establish pri-vate nursery care for childrenfor 10 hours, if necessary usingoutside catering services andpremises adapted to the basicneeds of this type of institu-tion. Poorer communities willreceive additional supportfrom the central governmentto run such nurseries.

The new bill will also intro-duce other forms of privatechild care, like establishingdaily clubs which provide fivehours of care for small chil-dren up to three years old andfunction flexibly. The localgovernment can create thepost of a daily guardian of chil-dren, to be performed by a sin-gle person, and can help thatperson to adjust his own livingplace to do so. Anotherchange will be the possibilityfor the state to pay pensioncontributions and also healthinsurance contributions for aprivate individual [nanny] whois hired to take care of a childat home on the basis of a for-mal contract and is paid by theparents.

All of these changes shouldhelp working mothers to pro-vide better care for their chil-dren and allow some womenwith small children to enterthe workforce.

And what about programs forolder people? We have created a 50+ pro-gram aimed at increasing thenumber of people employedafter that age. As a result ofour efforts, the rate of employ-ment among that group ofpeople rose from 29.7 percent

in 2007 to 34.9 percent in 2010. I regard this as a success,

although I think that there isstill a lot of work to do to con-vince reluctant employers tohire people over 50 years old.

The unemployment rate hasreached a high level of 13 per-cent. What is your ministrydoing to improve the situa-tion?If our economy maintains itscurrent rate of growth, Iexpect the level of unemploy-ment to drop to 9.9 percent atthe end of this year. And in2011 we will provide nearlyz∏.2 billion from the LaborFund to actively fight unem-ployment, which is a big prob-lem not only in Poland but innearly all EU countries.

In previous years – in spiteof financial difficulties – the

cost of fighting unemploymentwas even greater: in 2008, ittotaled z∏.3.36 billion; in 2009 itwas z∏.6.2 billion; and, accord-ing to the budget for 2010, itamounted to z∏.6.5 billion.

The money from the LaborFund has created significantnumbers of jobs. In the 2008-2009 period alone, some60,000 jobs were createdthrough refunds of hiring costsfor employers taking on unem-ployed people; meanwhile,thanks to funding over 110,000people started their own eco-nomic activity [in that period].And we will continue this poli-cy this year.

To what extent have EU pro-grams helped the governmentto fight unemployment?EU programs help a lot. Everyyear we can use z∏.2-3 billion ofthose funds for various kinds oftraining for the unemployed.We organize these across thecountry and target them to var-ious groups of people – theyoung unemployed, older peo-ple and women who have lostjobs or are looking to reskill.

Do our labor laws sufficientlyprotect the interests ofemployees and employersalike? What is your ministry’srole in this relationship?Employers always have astronger position on the jobmarket. The state plays therole of arbiter between the[employers] and the workforce.

The Labor Code is sup-posed to ensure equitable rela-tions between these two sides,because one side cannot existwithout the other. ●

FEBRUARY 28 – MARCH 6, 2011 IINNTTEERRVVIIEEWW www.wbj.pl 9

“The most important thing inreforming the system is to take into

account what Poland can afford”

FEBRUARY 28 – MARCH 6, 201110 www.wbj.pl PPOOLLIITTIICCSS

For advertising and promotion opportunities contact:Agnieszka Brejwo: abrejwo@wbj.pl; (+48) 639-85-68, ext. 226

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Sectors analyzed:• Automotive products• Clothes• Cosmetics• Defense• Food & Agriculture• Furniture• Pharmaceutical market• Yachts

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Politics online

Kaczyƒski, Kaczyƒska

take up blogging

New blogs by Jaros∏awKaczyƒski and MartaKaczyƒska havespurred online debate

Jaros∏aw Kaczyƒski, head ofmain opposition party Law andJustice and twin of late Presi-dent Lech Kaczyƒski, has takenup the pen, so to speak, andlaunched a blog. His nieceMarta Kaczyƒska, herself thesubject of much speculationonline, has also joined the blo-gosphere.

Mr Kaczyƒski started hisblog on Salon24.pl, a popularplatform. His first post was atranscript of a speech he recent-ly delivered, titled, “Poland andthe Polish people deserve mod-ern economic patriotism.” Theentry elicited over 1,600 com-ments in two days, both positiveand negative.

Igor Janke, editor-in-chiefof Salon24, posted a welcometo Mr Kaczyƒski on his ownblog, noting that the PiSleader’s move had generatedmuch interest. Indeed, severalDemocratic Left Alliance andCivic Platform MPs – as well asDeputy Prime Minister Walde-mar Pawlak – used their ownunderutilized blogs to air views

on Mr Kaczyƒski’s. “Those are all good signs.

Salon24.pl aims to be pluralis-tic. We invite politicians andsupporters of all factions to par-ticipate in serious debates, witharguments from both sides,”Mr Janke wrote.

Embracing this ideal, in hissecond post Mr Kaczyƒskichose to answer comments tohis first entry.

“I hope that this blog willbecome a good ground for dis-cussions about Poland. I will tryto read all entries, both positiveand negative, and take intoaccount their suggestions andfeedback. Today, I respond toseveral, but I greet all,” heblogged.

For her part, MartaKaczyƒska, daughter of the latepresident and first lady, startedblogging on Niezalezna.pl, thewebsite of the conservativemonthly magazine of the samename.

Her first entry was a refuta-tion of persistent rumors thatshe intends to run in theupcoming parliamentary elec-tions. “I do not intend to standin the coming parliamentaryelections,” she wrote.

AAlliiccee TTrruuddeellllee

Credibility

PPoollaanndd’’ss mmoosstt ttrruusstteedd ppoolliittiicciiaannssThe president isPoland’s most trustedpolitician, Jaros∏awKaczyƒski its least

Grzegorz Napieralski, theleader of the Democratic LeftAlliance (SLD), is the second-most trusted politician inPoland, according to a CBOSpoll conducted in February.

Mr Napieralski, fourth onthe list in January, overtookPrime Minister Donald Tuskand Foreign MinisterRados∏aw Sikorski. As in Jan-uary, President Bronis∏awKomorowski remained first onthe list.

Only 14 percent of Polesdistrust Mr Napieralski, whileover 51 percent say they trusthim.

Meanwhile, 47 percent ofPoles trust Donald Tusk andRados∏aw Sikorski. However,34 percent distrust the PM,while 16 percent distrust Siko-rski.

Sixty-five percent of Polessay they trust Bronis∏awKomorowski, while just 15percent distrust him.

The least-trusted politicianon the list was Law and Justice(PiS) leader Jaros∏aw Kaczyƒs-ki, who commanded 27 per-cent trust and 56 percent dis-

trust. The latter figure was upfive percentage points on theprevious month.

Second on the list of themost distrusted politicians wasPiS MP Antoni Macierewicz,who heads the ParliamentarySmolensk Investigation Com-mittee. Only 21 percent ofPoles trust him, while 41 per-cent distrust him.

Meanwhile, according to apoll carried out by TNSOBOP, Civic Platform (PO)would get 44 percent of the

vote if parliamentary electionswere held today. This meansan increase of six percentagepoints on the previous survey,two weeks earlier.

PiS polled 27 percent sup-port, a rise of one percentagepoint. However, compared toDecember they’re up five per-centage points.

The proportion of peoplewilling to vote for the leftistSLD dropped by one percent-age point to 12 percent. Andthe only other party that would

pass the five-percent thresholdto enter parliament would bethe Polish People’s Party,which polled at six percent.

The six percent result whichnew political grouping PolandComes First saw two weeksearlier evaporated, leaving justtwo percent, while about fourpercent declared support forenfant terrible Janusz Palikot’snew Movement of Supportpolitical grouping.

KKaattaarrzzyynnaa PPiiaasseecckkaa,,GGaarreetthh PPrriiccee

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The Matrix andits revolutions

FEBRUARY 28 – MARCH 6, 2011 OOPPIINNIIOONN www.wbj.pl 11

Joanna Wóycicka

Never before has thedemocratic world beenso confused and its

intelligence services so help-less. What to do when allies –dictatorial allies, admittedly –are being swept from power,one after another?

And who to talk to? It hasproven impossible to singleout any approachable leader-ship of the protests topplingNorth African regimes.

In the meantime, journal-ists with the internationalmedia are talking to ordinarycitizens with internet access,rather than to local politicians.Reports submitted via Skypeare screened on the world’smain television stations. Filmsrecorded on cell phones are allover the internet.

The power of technologyAll of this illustrates the powerof the internet to disrupt“old-school” politics andreshape them. It has been thefaceless masses, coordinatingdemonstrations online, thathave crippled North Africa’sautocracies, not charismaticopposition leaders.

With the help of Facebookand other services, protestorshave not only fixed times andlocations for gatherings, butalso warned each other wherepolice blockades have been setup and advised each other onhow to avoid them.

The authorities in thesecountries are not blind to thesource of this threat. In earlyJanuary, reports came out thatTunisia’s (now former) gov-ernment was hacking Face-book accounts and censoringdebate. Libya, like Egyptbefore it, has tried its best tounplug the internet.

In the old days, theseregimes would simply havedragged unruly oppositionleaders off to jail to be tor-tured. Fortunately this – liketurning off the internet – is no

longer a simple matter.

Google instead of bulletsAt the start of February,Google and Twitter issued ajoint communiqué stating thatspecial local telephone num-bers had been set up in Egypton which short reports couldbe recorded via answeringmachine. The system wouldthen convert recordings totweets on Twitter under the#egypt hash tag.

But an even more signifi-cant move came on February17, when US Secretary of StateHillary Clinton announcedthat the US had allocatedadditional funds to financeprograms to bypass internetcensorship in countries such asChina, Iran and Cuba.

Washington intends to traindissidents on how to delete

information from cell phonesin case of arrest. And, ratherthan financing oppositionpoliticians, the US is financingvolunteers and experts whowill visit Burmese internetcafes and teach people how toset up secure email accountsand how to avoid censorship.

The rise of online grass--roots movements – guerrillae-communities, in otherwords – could have majorrepercussions for authoritari-an states around the world.

Who’s next?While experts debate the con-sequences of the “Arab awak-ening” for the rest of theworld, it is also worth consid-ering what might happen ifother societies follow similarpaths. Could “awakenings”occur in nations with closer

and more significant trade tiesto Europe?

What about the RussianFederation, a vital source offossil fuels, especially given theinstability in the Middle East?Or the Caucasian countries,suppliers of raw materials toEurope? And then there’sChina, the great manufactur-er, where the rustle of eco-nomic discontent can alreadybe sensed.

Regime shifts in any ofthese places would have majorrepercussions for the Euro-pean economy. On the otherhand, there’s little sign thatNorth Africa-style change is inthe air. For now, anyway.

People powerKeep in mind that both oppor-tunity and danger lie in thewake of revolution. Transfor-mation and new freedomsawait North Africa, at least inthe short term. And these willbe accompanied – in the shortterm, again – by greater pover-ty and a fall in living standards,a contraction in the consumermarket and fewer foreigninvestments.

But eventually the situationwill stabilize and infrastructuredestroyed in the revolutionwill be rebuilt. The question,then, is will these transforma-tions change lives for the bet-ter in the long term?

The internet, for all theopportunities it affords, offersno answers. It is an enabler parexcellence and a true embodi-ment of mass communication,but it can no more rebuild anation than start a revolutionon its own. ●

Joanna Wóycicka is the for-mer head of the foreign sec-tions of the ˚ycie Warszawyand ˚ycie newspapers andthe former head of the foreigndepartment at the Polish PressAgency (PAP).j.woycicka@hotmail.com

Just as entrepreneursadapted to the new, post-economic crisis business

environment, another diffi-culty has presented itself: theprospect of talented staff leav-ing for greener pastures.

Recruitment consultancyHays has found that as manyas 55 percent of Polish workerscould look for new work thisyear (see cover story, pp. 12-13). While it’s clear not all willactually change jobs, a signifi-cant proportion – lured byadvancement opportunities,perks, and higher salaries –just might make a move.

Profiting togetherThis is a fact of life in an em-ployees’ market, one whichwill test companies which shedweight and increased efficien-cy in response to the economiccrisis. Some firms will be up tothe challenge of retaining tal-ent; others will not.

Faced with the crisis, didthe company simply slash staffand salaries, piling more workon harried employees? Or didit find ways of letting go ofinessential personnel andtrimming unnecessary spend-ing, rewarding those whose

efficiency increased? Companies that managed

the latter are more likely toretain employees. And not justbecause their staff feel appreci-ated, but because managementhas demonstrated its compe-tence and kept the company onan even footing, economicallyspeaking. This means newopportunities for the companyto grow, and thus for careerdevelopment within it.

Hopefully, managers alsotook the opportunity affordedby the economic downturn totake a good look at their cultureand style of management. Fortoo long, Polish companies –including some internationallyowned or managed – have heldonto a communist-era mentali-ty: staff are treated as under-lings and internal communica-tion is seen as unnecessary.

On the other hand, compa-nies in which employees andmanagement work together toachieve goals will see a high rateof worker retention. Employeeslike seeing their ideas beingtaken into account and con-tributing to a company’s success.

Employment taxesThe government could also

play a role in helping compa-nies retain their best people.Hiring staff, and keeping themon the payroll, still comes withfar too many costs.

No government has yetbeen able to pare down thefees imposed by ZUS, theimmense and highly inefficientstate-run pension institution,and it’s unlikely this govern-ment will slash fees now, giventhat the budget deficit stillthreatens to breach a legallymandated threshold.

But making ZUS more costeffective, so that employers’contributions to the institutioncould be reduced in the nearfuture, would be a welcomemove.

Poland’s admirable per-formance during the downturnand its speedy recovery havebeen good for business. Butemployees, rightly, want toshare in that prosperity.

With a little help from a sup-posedly business-friendly gov-ernment, companies that havebecome more efficient – notjust stingier – and have im-proved their management cul-ture, can allow that to happen.And that will be enough to keeptheir best talent around. ●

“The internet, for all theopportunities it affords,

offers no answers”

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Smart firms will keep their talent

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

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

DEPUTY EDITORE. BLAKE BERRY(BBERRY@WBJ.PL)

ONLINE & NEWS EDITORGARETH PRICE(GPRICE@WBJ.PL)

REAL ESTATE EDITOR

ADAM ZDRODOWSKI(AZDRODOWSKI@WBJ.PL)

POLITICS EDITOR

REMI ADEKOYA(RADEKOYA@WBJ.PL)

INTERNATIONAL EDITOR

ALICE TRUDELLE(ATRUDELLE@WBJ.PL)

CONTRIBUTORS

EWA BONIECKAANTHONY CASEY

RICHARD WERNICKJOANNA WÓYCICKA

INTERNS

ALEX HAYESNATALIA KAZIKKATARZYNA PIASECKA

CARTOONSPIOTR WYSKOK

COLUMNISTSPAUL FOGOJUDITH GLINIECKITOMASZ JERZYKKAMIL CISOWSKI

PRODUCTION MANAGERPIOTR WYSKOK

GRAPHIC DESIGNER¸UKASZ MAZUREK

WBJ SALES & ADVERTISING

MARKETING &SALESAGNIESZKA BREJWO(ABREJWO@WBJ.PL)

KATARZYNA PINKIEWICZ(KPINKIEWICZ@WBJ.PL)

JOWITA MALICH(JMALICH@WBJ.PL)

PR & MARKETING MANAGER KATARZYNA DRAGAN(KDRAGAN@WBJ.PL)

SUBSCRIPTIONS MANAGERAGNIESZKA MICHALIK(AMICHALIK@VALKEA.COM)

PRINT & DISTRIBUTION COORDINATORKRZYSZTOF WILI¡SKI(DYSTRYBUCJA@VALKEA.COM)

BOOK OF LISTS SPECIALISTJOANNA RASZKA(JRASZKA@VALKEA.COM)

MANAGING DIRECTOR MONIKA STAWICKA

FEBRUARY 28 – MARCH 6, 2011CCOOVVEERR SSTTOORRYY12

Ukraine to

supply gas

to Poland

State-owned Ukrainian

gas concern Naftogaz

intends to resume gas

exports to Poland,

newspaper Kommersant-

Ukraina reported. By the

end of the year the firm

wants to have exported

300 million cubic meters

of fuel to Poland. The

company also has further

plans to export up to 10

times more and hopes to

eventually supply up to

three billion cubic

meters. These plans do

not please Russian Gas

monopolist Gazprom.

Sugar prices

leave bitter

tasteThe price of sugar has

risen by 40% on an

annual basis as a result

of European Commission

regulations, natural

disasters and low crop

yields. A metric ton of

sugar was priced at $773

in London last week,

while in May last year it

was priced at $413. In

the 2009/2010 period,

the European Union

produced 16.25 million

metric tons of sugar,

compared to 17.35

million a year before.

The production of sugar

in Poland decreased by

200,000 metric tons to

reach 1.43 million metric

tons.

Private

health-care

tax breakThe government has

proposed a tax

deduction on private

health-care premiums

and the possibility of

financing private health

insurance from company

social funds. If enacted,

a private policy holder

would have the

possibility of being

treated in a public

hospital more quickly

than patients without

private insurance.

Critics leaped on this

particular point, stating

that such a system

would create a divide

between the more and

the less privileged. ●

www.wbj.pl

The labor market

Employees looking forgreener pasturesPoland’s job market isshifting – caveatemployer

If you’re reading this in theoffice, take a look around you.Half of your colleagues couldbe gone by the end of the year,according to a recent analysisof the Polish labor market.

That’s not to say that theplague is on its way to Poland,but rather that the strength ofthe economy may facilitate jobturnover.

The unemployment rate hit13 percent in January, accord-ing to Poland’s Central Statis-tical Office, a far cry fromPoland’s October 2008 low of8.8 percent, but still lower thanwhat the country saw last win-ter. In fact, private sectoremployment increased 3.8 per-cent y/y in January, a risewhich beat market expecta-

tions. Meanwhile, GDP growth

reached 3.8 percent in 2010and forecasts for 2011 top that.

According to internationalrecruiting firm Hays, author ofthe aforementioned analysis,as many as 55 percent of

employees plan to change jobsin 2011. Micha∏ M∏ynarczyk,managing director of Hays’Polish and CEE arms, the Pol-ish specialist employmentmarket is now “candidate driv-en,” a situation last seen in2008.

“I am personally amazed bythe speed of the recovery, butthe fact is that most employersdo not realize yet that we areback in the candidate-drivenemployment market,” MrM∏ynarczyk cautioned. “Theywill realize that when they

start losing their top employ-ees who now have multiplealternatives or when they startgetting candidates they offer ajob dropping out from therecruitment process and tak-ing another offer.”

He described this as “afrustrating lesson, but a neces-sary eye-opener” which willlead to increased pressure onsalaries in the long term.

Growing opportunitiesBut will the market actuallysee such a huge shift? Theo-retically it’s possible. But evenif 55 percent of those surveyedfor Hays’ research indicatedtheir intention to seek newemployment, there’s no guar-antee they will actually act.

Nevertheless, popular web-sites Praca.pl and Pracuj.plboth report upturns in jobsbeing advertised.

Anthony Casey

%

9

13

17

21

25

20102009200820072006200520042003200220012000

*figure indicates unemployment rate at year end

Rate of change

Poland's unemployment rate, 2000-2010*

Source: Central Statistical Office

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CK

FEBRUARY 28 – MARCH 6, 2011 CCOOVVEERR SSTTOORRYY www.wbj.pl 13

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

Non-competeclauses

Legal Eye

In comparison to the rest ofEurope, Poland appears tohave come through the recenteconomic slowdown relativelyunscathed. At the end of 2010the unemployment rate inPoland stood at 10 percent,according to the EuropeanCommission, and GDPgrowth in Poland in 2010reached 3.8 percent.

The relatively strong num-bers for Poland in comparisonto most of the EU have creat-ed a bit of a dilemma for Pol-ish business: How to retain avaluable employee? Besidesoffering a competitive com-pensation package and posi-tive work environment, whatelse can an employer do toprotect against the loss of akey employee?

One solution, although notfoolproof, is to include a non-competition clause in theemployment agreement.Depending on the scope ofthe clause, an employee maythink twice before deciding toaccept a new position from acompetitor.

What is a non-competeclause?A non-compete clause is apromise not to engage inactivity competitive or harm-ful to that of the employer.Even without the inclusion ofa non-compete clause, anemployee is still generallyobligated to keep informa-tion confidential if the re-lease of such informationcould injure the employer.

To be safe, though, mostattorneys advise their businessclients to include a non-com-pete clause in their employ-ment agreements.

Who?An employer is free to requireeach employee to sign a non-compete clause, either as partof the employment agreementor as a separate addendum.Such wording may also beused in the hiring of an inde-pendent contractor, profes-sional advisor or serviceprovider.

Scope The Labor Code does not reg-ulate the content of a non-compete clause other than torequire that any restrictionplaced on an employee beproportional to the employ-ee’s duties and potential injuryto the employer.

A non-compete clausemay be drafted to survive ter-

mination of the employmentrelationship; however, in suchcase the restriction may onlyapply to particularly importantinformation obtained by theformer employer during his orher employment. A non-com-pete clause may not be used tosimply prevent an employeefrom moving to a competitor.The restriction may, however,prohibit an employee fromtransferring proprietary infor-mation obtained from his for-mer employer to his newemployer.

In order for an employeeto be bound by a non-competeclause following his or her res-ignation, the employer mustcontinue to pay the formeremployee an amount equal tonot less than 25 percent of hisor her former salary for aslong as the non-competeclause remains in effect.

The Labor Code does notplace a limit on the length oftime a non-compete clausemay continue to be enforce-able following the resignationof an employee, but in prac-tice a court will not upholdsuch restriction indefinitely.

Monetary penaltiesMonetary penalties payableby an employee to an employ-er in case of breach of a non-compete clause may bedefined in advance in theemployment agreement itself.Otherwise, an employer mayseek monetary compensationfrom an employee or formeremployer equal to the amountof actual damages, withoutlimitation if the breach wasintentional.

If the leak was not inten-tional, however, the maximumamount of compensation thatan employer may seek is limit-ed to three months’ salary ofthe employee.

One final noteLiability for breach of a non-compete clause is not limitedto the employee. Liabilitymay also transfer to anemployee’s new employer ifthe new employer benefitsfrom the disclosure of confi-dential information by theemployee obtained whileworking for his formeremployer.

Moreover, liability is notcontingent upon the breachof a non-compete clause. Theunauthorized use of propri-etary information is action-able with or without a non-compete clause. ●

Micha∏ Filipkiewicz, a mar-keting specialist with Praca.pl,said the figure had beenincreasing for several monthsand he expects the trend tocontinue in 2011.

“More job availabilitiessends a clear signal to employ-ees that the job market hasfavorably changed,” Mr Filip-kiewicz stated. “After 18months of economic depres-sion, when everyone fearedlosing their jobs and felt luckywhen they could keep theirpresent job, employees arenow more eager to look fornew challenges.”

Pracuj.pl too has seen amarked and ongoing increasein the number of jobs adver-tised. Spokeswoman ElizabethFlasiƒska said that in 2010 theportal had carried more than240,000 job offers – anincrease of 50 percent com-pared to 2009 figures.

“That upward trend hasbeen maintained from the verybeginning of this year. In Jan-uary, employers posted morethan 26,000 offers on our web-site. This gives grounds tobelieve that employees arethinking more about changingjobs,” Ms Flasiƒska said.

“But,” she added, “it israther unlikely that such adecision has been taken bymore than half of all employ-ees.”

Shifting industriesThis growth of job offers clear-ly hints at change in the labormarket in the coming months,even if its scale is debatable. Sowhich areas will be most affect-ed?

Hays’ research suggests thatthe biggest changes will be seenin the manufacturing sector(about 16 percent), followed bysales and marketing (13 per-cent), finance (10 percent) andconstruction (nine percent).Significant movement is alsoexpected in the IT sector.

According to the firm’s sur-vey, the fields of law, architec-ture, administration and healthcare are less likely to seeemployment shifts.

That’s on the labor side, ofcourse. On the other hand, inPraca.pl’s experience employ-ers in the IT, telecoms, newtechnologies and constructionindustries are definitely lookingto increase staffing.

“More job offers are alsoavailable for account managersand salespeople, accountants,and internet marketing special-ists – exactly the same groupsthat plan to change their jobsaccording to the Hays report,”Praca.pl’s Micha∏ Filipkiewiczstated. He emphasized, howev-er, that not everyone seeking tochange jobs would actuallyimprove their professional sta-tus.

Pracuj.pl’s own research,meanwhile, suggests that confi-dence is high among job seek-ers. Elizabeth Flasiƒska saidthat, of about 12,000 peoplewho took part in a survey con-ducted by her firm, 51 percent

rated their chances of success-fully landing a job as good. Thisconfidence could always bemisplaced – and many jobapplicants will learn this thehard way – but it’s a good indi-cator of the way sentiment isswinging in the market.

Hays’ Micha∏ M∏ynarczykdescribed this increasing move-ment in the employment mar-ket as a sign of economichealth. At the same time, hedrew attention to a structuralshift now taking place.

“In very developedeconomies like the USor Germany, the trend iseven shifting from astandard full-time jobsto contract jobs, where atypical career is morelikely to include severalthree-to-six-month proj-ects rather than a life-long employer,” MrM∏ynarczyk said.

Keeping them happyIs this really the start of an“employee-led” labor market?If so, what should employersexpect?

Michael Dembinski, strate-gy and policy director at theBritish-Polish Chamber ofCommerce, agreed that the sit-uation appears to have shiftedin favor of employees. But, headded, it will take time before aclear picture of the marketemerges.

“It’s too early to saywhether we’re seeing a returnto the employees’ market of2007 to 2008, with double-digitgrowth in average wages and

employers struggling to hold onto their best people,” Mr Dem-binski said. “One factor that’sdifferent today is that migra-tion is no longer draining thePolish labor force as it wasthree to four years ago; we esti-mate that some 300,000 Poleshave returned home from theUK since then.”

Employers will certainlyface increased costs as talentedstaff move on. Praca.pl’s MrFilipkiewicz said these expens-es vary, depending largely onthe amount of specialization

required by the vacant post. Inother words, finding the rightcandidate with the necessaryskills costs more in terms ofsalary and recruitment thansimply finding a warm body todischarge general duties.

Asked what employers cando to hold onto their bestemployees, Mr Filipkiewiczsaid, “[Keeping employeeshappy] can be achieved by pro-viding them with good workingconditions, a proper salary,training, perks, etc. The moresatisfied the employee is, thelower motivation he has to lookfor another job.”

Research from internation-al HR firm Aon Hewitt sug-gests there’s another factor as

well. Companies tend to lookoutwards when they considerbrand strengthening, but Aon’sreport suggests that employeestoo need to be aware of andhave confidence in theiremployer’s brand.

Listen to staff,or lose themWhat it all comes down to isthis: Wages are rising – up fivepercent in January comparedto last year, according toPoland’s Central StatisticalOffice. Meanwhile, the number

of job offers is growingand more peopleappear willing to takea chance on newemployment.

According toPracuj.pl’s ElizabethFlasiƒska, this meansthat employers aregoing to have to listen

carefully to what their staffwant.

“In the improved economicsituation, and with the cost ofliving increasing, most employ-ees will try to increase theirsalaries,” she stated. With theeconomic crisis largely behindus, Ms Flasiƒska noted thatemployees are not content tosimply hold onto their presentjobs.

“The situation haschanged,” she said, “and ifcompanies do not respond tothese expectations, the lack ofresponse from their side mayincrease the number of peopleactively seeking new work dur-ing the second quarter of2011.” ●

%

1

2

3

4

5

6

DecNovOctSeptAugJulyJuneMayAprMarFebJan

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

Growing paychecks

Annual growth of average private sector wage in Poland, 2010

Source: Central Statistical Office

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CK

Will offices empty out as Poles look for better-paying jobs?

“In the improved economicsituation most employees willtry to increase their salaries”

FEBRUARY 28 – MARCH 6, 2011MMAARRKKEETTSS14 www.wbj.pl

SO

UR

CE

: W

SE

PLN-EUR

3.91

05

3

.929

5

3

.963

2

3

.957

5

3

.991

6

3.9

757

18.0

2

21.0

2

22.0

2

23.0

2

24.0

2

25.0

23.8

4.0 PLN-USD

18.0

2

21.0

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22.0

2

23.0

2

24.0

2

25.0

2

2.88

03

2.87

55

2

.919

8

2.8

868

2.8

941

2.87

70

2.5

3.0 PLN-GBP

18.0

2

21.0

2

22.0

2

23.0

2

24.0

2

25.0

2

4.6

720

4.66

33

4.

7170

4.6

901

4.6

869

4.63

37

4

5 PLN-CHF

3.02

47

3.0

320

3.

0924

3.0

773

3.1

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3

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22.9

3.2 PLN-RUB

18.0

2

21.0

2

22.0

2

23.0

2

24.0

2

25.0

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0.09

85

0.09

85

0.0

997

0.09

86

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995

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995

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0.11 PLN-100JPY

18.0

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3.45

40

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72

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5235

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906

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5366

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currency rates

Stocks edgehigher

Stocks report

Polish stocks inched up lastweek, as the blue-chip heavyWIG20 index rose by nearly0.4 percent and the mainWIG gained 0.2 percent.Only the small-cap stocksbenchmark finished in thered, declining by 0.7 percent.

Poland missed the recentrally on major global stockmarkets, but this week itsindices outperformed keyglobal stock markets. InPoland the most importantmacroeconomic data con-cerned retail sales, whichrose by 5.8 percent y/y. Thiswas slightly disappointing, asanalysts had predicted an 8.5percent rise. Additionally,the unemployment rate forJanuary also came in aboveconsensus at 13 percent,which is negative, but weakerdata may delay another ratehike. This could help bulls tolift prices higher.

Company earnings wereanother important topic forinvestors, and most compa-nies which broke out theirresults last week managed tobeat expectations.

Oil companies and mediastocks outperformed othersectors, with MOL andPGNiG the top picks amongthose stocks. Crude oilfutures were sharply up afterthe troubles in Libya andinvestors rushed to buy them.

Construction companiesand chemicals were thebiggest laggards, but it mustbe stressed that changeswere generally not big. How-ever, PBG negatively affect-ed the construction index asits shares lost five percentafter a recent downgrade.

It was a rather quiet weekon the WSE, and investorsappear unsure where indiceswill head in coming weeks. ●

Markets underLibya’s shadow

Currency report

The tragic events in Libyalast week affected the volatil-ity of commodities, especial-ly oil and gas, and currencymarkets.

While previous distur-bances in several NorthAfrican countries hadbrought some uncertainty tomarkets, their effect wasalways limited. None of thesecountries had the ability topush markets like Libya does.It is the eighth-largest oil pro-ducer in OPEC. The natureof the other conflicts was alsoquite different. What is hap-pening now in Libya can becalled a civil war and mayresult in a complete shut-down of Libyan exports for atleast a few months.

Concerns about the situa-tion have affected the Swissfranc and the Japanese yen.Both of these currencies,seen as safe havens, have

appreciated strongly. TheBritish pound and most ofemerging markets currencieshave weakened severely.

The biggest surprise isprobably the strengtheningof the euro. Despite thedetrimental effects of Libya’sproblems on oil supplies toSpain and Italy, the euro hasmanaged to stay strong. Themost important reason isgrowing expectations ofinterest rate hikes in Q2.

The z∏oty’s movementswere determined by state-ments made by central bankhead Marek Belka. While hisprevious statements could beconstrued as previews to aMarch interest rate hike, hisannouncement last weekquestioned the probability ofsuch an event. The z∏otyreacted negatively, testingthe z∏.4.00 level against theeuro on Friday. ●

Tomasz Jerzyk, technical analyst DM BZ WBK SA

Kamil Cisowski, X-Trade BrokersDom Maklerski SA

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Major indices

Top 5 Closing % change (week) 52-week high 52-week lowGRAJEWO 19.03 20.44 19.51 7.40WARFAMA 2.05 18.50 2.09 1.50GASTELZUR 0.66 17.86 2.08 0.53PEPEES 0.73 15.87 0.73 0.43PRONOX 1.27 12.39 2.32 0.58

WIG 46,547.75 (February 24 closure)

Change for the week: -0.06% 52-week high: 48,371.02

Change year to February 24: -2.31% 52-week low: 37,949.49

Top 5 Closing % change (week) 52-week high 52-week lowPGNIG 3.85 3.49 3.93 3.16PZU 349.00 3.41 417.50 326.00PKNORLEN 45.10 2.73 49.00 33.29CEZ 134.50 1.51 148.80 118.70GTC 21.15 1.20 25.00 20.75

Bottom 5 Closing % change (week) 52-week high 52-week lowTECHMEX 0.12 -20.00 2.30 0.12LENA 2.65 -16.40 3.25 1.73ELSTAROIL 4.60 -13.86 8.90 3.57ASBIS 3.45 -11.54 5.13 3.40OPTIMUS 6.69 -11.39 7.78 1.15

Bottom 5 Closing % change (week) 52-week high 52-week lowPOLIMEXMS 3.43 -3.92 5.29 3.33PBG 192.20 -3.85 252.00 192.20KGHM 163.50 -1.21 188.90 88.20PGE 22.43 -0.97 23.97 19.70TPSA 16.63 -0.72 18.65 14.10

WIG20 2,653.94 (February 24 closure)

Change for the week: 0.46% 52-week high: 2,794.58

Change year to February 24: -3.66% 52-week low: 2,198.36

mWIG40 2,807.48 (February 24 closure)

Change for the week: -1.15% 52-week high: 2,904.35

Change year to February 24: -0.01% 52-week low: 2,287.76

sWIG80 12,658.03 (February 24 closure)

Change for the week: -1.23% 52-week high: 12,855.31

Change year to February 24: 3.34% 52-week low: 10,980.45

NewConnect 57.62 (February 24 closure)

Change for the week: -0.89% 52-week high: 64.04

Change year to February 24: -9.13% 52-week low: 54.54

WIG-Banki 6,639.20 (February 24 closure)

Change for the week: 0.36% 52-week high: 7,262.73

Change year to February 24: -4.64% 52-week low: 5,479.10

DJIA12,064.25 (Feb 24 close)

-2.05% (for the week)

CHANGE: 4.20%

(year to Feb 24)

52-week high: 12,418.00

52-week low: 9,596.04

NASDAQ2,741.64 (Feb 24 close)

-3.18% (for the week)

CHANGE: 2.43%

(year to Feb 24)

52-week high: 2,840.51

52-week low: 2,061.14

S&P5001,306.27 (Feb 24 close)

-2.54% (for the week)

CHANGE: 3.87%

(year to Feb 24)

52-week high: 1,344.07

52-week low: 1,010.91

FTSE1005,940.75 (Feb 24 close)

-2.38% (for the week)

CHANGE: 0.69%

(year to Feb 24)

52-week high: 6,105.80

52-week low: 4,790.00

DAX7,133.98 (Feb 24 close)

-3.59% (for the week)

CHANGE: 2.30%

(year to Feb 24)

52-week high: 7,441.82

52-week low: 5,518.27

NIKKEI22510,452.71 (Feb 24 close)

-3.52% (for the week)

CHANGE: 0.97%

(year to Feb 24)

52-week high: 11,408.20

52-week low: 8,796.45

world stock indices

28.0

1

31.0

1

01.0

2

02.0

2

03.0

2

04.0

2

07.0

2

08.0

2

09.0

2

10.0

2

11.0

2

14.0

2

15.0

2

16.0

2

17.0

2

18.0

2

21.0

2

22.0

2

23.0

2

24.0

2

46,000

46,400

46,800

47,200

47,600

48,00028

.01

31.0

1

01.0

2

02.0

2

03.0

2

04.0

2

07.0

2

08.0

2

09.0

2

10.0

2

11.0

2

14.0

2

15.0

2

16.0

2

17.0

2

18.0

2

21.0

2

22.0

2

23.0

2

24.0

22,600

2,630

2,660

2,690

2,720

2,750

28.0

1

31.0

1

01.0

2

02.0

2

03.0

2

04.0

2

07.0

2

08.0

2

09.0

2

10.0

2

11.0

2

14.0

2

15.0

2

16.0

2

17.0

2

18.0

2

21.0

2

22.0

2

23.0

2

24.0

2

2,800

2,830

2,860

2,890

2,920

2,950

12 900

28.0

1

31.0

1

01.0

2

02.0

2

03.0

2

04.0

2

07.0

2

08.0

2

09.0

2

10.0

2

11.0

2

14.0

2

15.0

2

16.0

2

17.0

2

18.0

2

21.0

2

22.0

2

23.0

2

24.0

2

12,500

12,580

12,660

12,740

12,820

12,900

28.0

1

31.0

1

01.0

2

02.0

2

03.0

2

04.0

2

07.0

2

08.0

2

09.0

2

10.0

2

11.0

2

14.0

2

15.0

2

16.0

2

17.0

2

18.0

2

21.0

2

22.0

2

23.0

2

24.0

2

57

58

59

60

61

62

28.0

1

31.0

1

01.0

2

02.0

2

03.0

2

04.0

2

07.0

2

08.0

2

09.0

2

10.0

2

11.0

2

14.0

2

15.0

2

16.0

2

17.0

2

18.0

2

21.0

2

22.0

2

23.0

2

24.0

2

6,600

6,680

6,760

6,840

6,920

7,000

Other indices

LLOOKKAALLEE IIMMMMOOBBIILLIIAAW a r s a w B u s i n e s s J o u r n a l ’s w e e k l y s u p p l e m e n t o n r e a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t • FEBRUARY 28 – MARCH 6, 2011, LI 16/08

Office rents

rising

Rents in the world’s most

important office markets

rose last year, a trend

that was also seen in

Poland, according to the

latest “Office Space

Across the World” report

by Cushman & Wakefield.

Hong Kong’s CBD,

London’s West End and

Tokyo’s CBD were the

three most expensive

office locations in 2010.

Overall, Poland’s national

market ranked 27th

among 68 countries, up

from 30th a year earlier.

Office rents in the Polish

capital’s CBD market rose

by approximately 11% in

2010.

Ufficio ready

in autumn

Euro-Invest, a subsidiary

of Kulczyk Holding, has

announced that work on

its Ufficio Primo

renovation project is

scheduled to be

completed this autumn.

The cost of

modernization work is

estimated at €16 million

(about z∏.63 million).

According to Euro-Invest,

this amount exceeds

twice the cost of building

a new facility of this type.

However, the firm is

working to preserve the

building’s historical

architecture. The

five-storey facility will

offer 6,000 sqm of

leasable office space and

conference space

underground. ●

Commercial

IImmmmoobbeell eenntteerrss tthhee PPoolliisshh mmaarrkkeettThe Belgiandeveloper has boughttwo projects andplans more

Belgian real estate developerImmobel has officiallydebuted on the Polish realestate market through theacquisition of two commer-cial projects. It purchased thespecial purpose vehiclesresponsible for renovatingthe CEDET and Okràglakbuildings, located in Warsawand Poznaƒ respectively,from Centrum Development& Investments (CDI).

Immobel and CDI willwork together on CEDETand Okràglak. Both firms arecontrolled by Luxembourg-based investor EastbridgeGroup, as is retailer EmpikMedia & Fashion (EM&F).

The value of the transac-tion was not revealed.

CEDET is a retail-officecomplex located on the cor-ner of Al. Jerozolimskie and

ul. Bracka in central Warsaw.It is best-known for its

longterm tenant, toy retailerSmyk (a brand owned by

EM&F) and its space is esti-mated at 20,000 sqm.

For its part, the 7,600 sqmOkràglak is an iconic, cylin-drical building in downtownPoznaƒ designed by 20th cen-tury architect Marek Ley-kam. According to AnnaRudnicka-Sipay∏∏o of Ad-vanced PR, work onOkràglak will start in Marchand is expected to be com-pleted within 14 months. Thegeneral contractor on theproject will be Polish compa-ny Elektrobudowa.

CEDET’s renovation isplanned to begin in Q1 2011,although Immobel is stillwaiting for certain docu-ments to be approved beforework can start.

According to the salesagreement, Immobel andCDI will also partner on therealization of future projectsin Poland.

KKaattaarrzzyynnaa PPiiaasseecckkaa

New projects

RRoonnssoonn’’ss lluucckkyy sseevveennThe Warsaw-baseddeveloper hasannounced newhousing projects anda commercial scheme

Ronson Development willlaunch at least seven newschemes across Poland thisyear, bringing an estimated900 apartments to the market.In so doing, the developerexpects to double its sales in2011, potentially moving morethan 500 units.

In the following years, Ron-son hopes to be able to sellfrom 800-1,000 units annually.

“The complete list of proj-ects which we are working onat the moment features asmany as 12 items, the majorityof which we should be able tolaunch by the end of the year.

This will allow us to consider-ably increase the scope of ouroperations and boost the rec-ognizability of our brand innew markets,” AndrzejGutowski, sales and marketingdirector at Ronson Develop-ment, said in a statement.

On Warsaw’s ul. Jana Kaz-imierza, Ronson will beinvolved in a project in which asubsidiary has bought a 58 per-cent stake. The scheme will berealized in partnership withthe seller.

Other developments in thecapital will include Magellanin Mokotów and new phasesof Verdis and Sakura in Wolaand Mokotów, respectively.Construction has just launchedon Gemini II in Ursynów and,just outside Warsaw in Falenty,the developer is planning sin-gle-family houses.

In Poznaƒ, Ronson willbuild a 238-unit project in theJe˝yce district and in Tulce,outside the city, it will launchthe first phase of a schemeinvolving a total of approxi-mately 250 apartments.

Sales in Ronson’s firstSzczecin project will launchsoon, and in Wroc∏aw thecompany wants to buildanother phase of Impressioas well as two completelynew schemes. One of these,located on the city’s ul. NaGrobli, will mix hotel andoffice functions, marking thecompany’s first venture intothe commercial propertymarket.

Ronson Development hasnot revealed the value of theinvestments scheduled forlaunch in 2011.

AAddaamm ZZddrrooddoowwsskkii

Immobel’s debut . . . . . . . . . . . .15

Ronson’s big plans . . . . . . . . . . .15

Tesco in Kabaty . . . . . . . . . . . . .16

Dipservice buildings . . . . . . . . .16

Carl Panattoni interview . . . . .17

Blue Center work launched . .18

Unibep’s Grzybowska deal . . .18

Property-related stocks . . . . . .18

In this issue

1617

Lokale talks to Carl Panattoni

about the strategic

significance of the region

Dipservice will build a six-

storey office building and

possibly a skyscraper

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Work on Gemini II has already started

To subscribe: e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription

Warsaw Business Journal presents Real Estate weekly newsletter

• Know about the newest projects before they’re on the market• Keep up to date on the latest tenders and auctions• Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate

or c

FEBRUARY 28 – MARCH 6, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE16 www.wbj.pl

Tesco to transform Kabaty store into shopping centerRetailer Tesco, which owns ahypermarket in the Kabatyneighborhood of Warsaw’sUrsynów district, is planningto replace the almost 12-year-old facility with a modernshopping mall within the nexttwo years. The companyintends to apply for a build-ing permit for the scheme

later this year and hopes toopen the new property in2013.

Tesco first aired its plansto build at the intersection ofAL. KEN and ul. Wàwozowain Kabaty a few years ago.However, the original con-cept also envisioned thedelivery of office and residen-

tial space and was deemedtoo large for the location bythe district and city authori-ties. A new zoning planadopted in 2008 made theinvestment impossible.

Tesco has now presented arevised, more modest vision ofthe project. The design of themall, which has been furnished

by the MOFO Architekci stu-dio, calls for a nine-floor build-ing with 45,000 sqm of GLA.The area is expected to beoccupied by more than 100tenants, including a Tescohypermarket and a multi-screen cinema.

In 2009, a Jones LangLaSalle report on the Warsaw

property market mentionedKabaty, along with the capi-tal’s Bia∏o∏´ka, Bielany andWilanów districts, as a locationin which there is still room fora large retail project.

Tesco has not revealed thevalue of the planned invest-ment.

AAddaamm ZZddrrooddoowwsskkii

Office space

Dipservice buildingoffices on ul. Foksal The state-owned firmmay also erect a 150-meter skyscraper inWarsaw

Real estate leasing companyDipservice plans to build a six-storey office building at ul. Fok-sal 10A in Warsaw. The loca-tion is currently occupied by arestaurant called The Mexican.

The as-yet-unnamed build-ing will offer more than 2,500sqm of leasable office spaceand about 500 sqm of retailspace on the ground floor.Work on the investment isscheduled to start in Q2 andfinish at the end of 2012.

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

sentative of the firm. Architectural studio

Juvenes Projekt is responsiblefor the building’s design, witharchitect S∏awomir Stankie-wicz leading the work. Itsarchitecture is intended toecho the style of the 1920s, yetfit in with the local landscape.

“Foksal is the city’s heart, astreet where the aristocraticcharacter of old apartmenthouses and palaces has beenpreserved. … Knowing this, wewill do our best to assure thebest standards of our officeinvestment here,” Pawe∏Krzemieƒ, chairman of Dipser-vice, said in a statement.

Dipservice’s portfolioincludes a total of 130,000 sqmof office space in Warsaw. The

company is currently owned bythe state, but privatization isexpected at an as-yet unspeci-fied date in the future.

According to some sources,Dipservice also plans to invest

in a 150-meter skyscraper on ul.Âwi´tokrzyska in the future.This building would offer about30,000 sqm of office space.

However, since the firmhas just begun the process of

acquiring administrative per-mits, it has been suggested thatit will not launch work on thebuilding until after the privati-zation process takes place.

KKaattaarrzzyynnaa PPiiaasseecckkaa

Budimex touts

2010 sales

Developer Budimex

NieruchomoÊci sold

almost 1,000 units last

year, a level that was in

line with the company’s

plans. It launched a total

of five new developments

in 2010. The firm predicts

2011 will be equally good

and plans to launch a

number of new invest-

ments this year, the

details of which it has not

yet revealed. The firm has

to date delivered more

than 6,000 units in the

three cities in which it is

present: Warsaw, Kraków

and Poznaƒ

Unibep’s green

deal

Stock-listed Polish real

estate firm Unibep will

serve as general contrac-

tor on the second part of

the Zielony ˚oliborz

(Green ˚oliborz) housing

estate in Warsaw. Unibep

will earn z∏.68.8 million in

the deal. The firm will

erect the stage C building

of the Zielony ˚oliborz

project, which comprises

more than 48,000 sqm.

The investment is sched-

uled to be completed in

2012 and will comprise

four buildings. ●

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The project will offer over 2,500 sqm of leasable office space

FEBRUARY 28 – MARCH 6, 2011 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 17

PM Group in

Âwidnica

Engineering and

architectural firm PM

Group has furnished a

concept design for Axle &

Manufacturing. The latter

firm is investing in a

brownfield project in

Âwidnica, Lower Silesia

voivodship. PM Group has

provided a feasibility

study, due diligence

analysis and design for

the adaptation of

industrial space and

office buildings vacated

by Remy Automotive

Poland, which closed its

Âwidnica factory in 2008.

Platinum

loan deal

Atlas Estates and

Raiffeisen Bank have

reached an agreement

concerning a 2008 loan

for the developer’s

Platinum Towers project

in Warsaw. According to

the refinancing deal,

Atlas Estates is to repay a

z∏.116 million loan by the

end of March 2012. The

complex comprises two

22-storey high-rise

buildings with a total of

396 apartments. Atlas

Estates is also planning a

third tower, with 39,000

sqm of office space. ●

Industrial development

CCaarrll PPaannaattttoonnii:: CCEEEE bbooaassttss mmaattuurriittyy aanndd ggrroowwtthh

Adam Zdrodowski: Panattonihas gained a strong presencein Central and EasternEurope in recent years. Howimportant is the region to youas a global provider of logis-tics space?Carl Panattoni: It is of criticalimportance. I can’t think of anylogistics center in which wedevelop that is more meaning-ful. CEE is the hub of bothexisting and future networks.I’d put it at the top now, and inthe foreseeable years to come.

Are the CEE industrial mar-kets “mature?”Yes, I do consider the region tobe “core” already, because ofthe locations it serves. Sincethe market is already mature,growth will be at a steady pace,rather than a dramatic rise.

The overall potential, how-ever, is enormous. It’s the bestof both worlds: maturity andgrowth. Over the next fiveyears, I believe we will do moredevelopment in the CEE thanin any other region in theworld.

Panattoni has recentlyannounced plans to enter thePolish retail sector. Is thissomething the company isdoing in other countries aswell? What is the rationalebehind the move and whichkinds of retail projects areyou going to focus on?We have experience in theretail property sector in othercountries, especially in the US,but also in Italy.

In Poland, after a coupleyears of dynamic develop-ment in the industrial mar-ket, we have reached a pointwhere our experience,resources and tenant baseallow us to enter a new [but]similar real estate market.This is similar [to industrialdevelopment] in the types oflocations – outskirts of cities– as well as the type ofclients.

We will be initially focusingon retail parks with two tothree tenants. We hope that, inthe long-term, our operationsin both segments can benefitmutually.

What are some of your invest-ment plans when it comes tothe industrial market inPoland?We own a significant portfolioin all core regions in Polandand therefore our initial goal isto dedicate our time andresources to expanding theselocations. At all times we arekeen to pursue new BTSopportunities.

What’s more, we will con-sider selectively building spec-ulative inventory in areas withlow vacancy rates.

Congratulations, by the way,on your CEEQA LifetimeAchievement Award. Howimportant is this distinctionto you?For 30 years, I’ve devoted mycareer to establishing andgrowing this company. Ex-panding it from a single assetto operations throughoutNorth America and intoEurope has been a very re-warding experience.

To see this hard work andintegrity acknowledged byCEEQA makes this awardextraordinarily satisfying. It isan honor that I did notexpect. ●

WBJ is a media partner of theCEEQA event

Lokale Immobilia talks to Carl Panattoni,founder, owner and president of PanattoniDevelopment Company, about his firm’sexperience in Poland and the CEE region, andhis CEEQA Lifetime Achievement Award

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0

100,000

200,000

300,000

400,000

500,000

600,000

Leased

Delivered

201020092008200720062005

Logistics statistics

Space delivered and leased (in sqm) by Panattoni in Poland,

2005-2010

Source: Panattoni Europe

FEBRUARY 28 – MARCH 6, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE18 www.wbj.pl

Cersanit,

Opoczno in

Echo

A new showroom for

Cersanit and Opoczno,

providers of ceramic tiles

and other interior design

products, will take up 600

sqm of space in the

Galeria Echo shopping

center in Kielce. Echo

Investment is currently

expanding the mall and

the new section is

scheduled to open in

August. It will comprise

some 70,000 sqm of GLA.

New Silesia

warehouse

leasesDamco Poland, Salus

International and Plastic

Omnium recently signed

lease agreements for

warehouse space in

SIlesia. Damco Poland

has leased 1,763 sqm in

the Alliance Silesia

Logistics Center in

Czeladê. Salus

International has taken

up 1,810 sqm of

warehouse and office

space at the Silesian

Logistics Centre in

Sosnowiec. Plastic

Omnium has joined

Diamond Business Park

in Gliwice. ●

Retail

Blue Center construction to launch soon˚yrardów should getits 5,500-sqm shoppingcenter by Q2 2012

˚yrardów Investment hasappointed Erbud as the generalcontractor of its Blue Centershopping center in ˚yrardów,Mazowieckie voivodship. Con-struction on the project isexpected to launch at the begin-ning of March and finish inApril 2012.

“According to the agree-ment, Erbud is to start work onMarch 2, 2011,” Piotr Kudlek,project manager at BOIG Pro-ject Management, said in astatement.

BOIG Property Consulting,part of the Blue Ocean Invest-ment Group, is serving as BlueCenter’s leasing agent.

Mr Kudlek added thatErbud would be responsiblefor the execution of compre-

hensive construction services,including groundwork, thedelivery of foundations, con-

nections to utilities and atwo-floor building, finishingwork and the provision of

access roads and parkingspace.

Located on ˚yrardów’s ul. 1Maja, Blue Center has beendesigned by the Kraków-based“Vide Studio” Wojciech Kurzakarchitectural firm . The designenvisions a modernist buildingemploying modern finishingmaterials.

The project will compriseapproximately 5,500 sqm ofspace, including 3,800 sqm ofGLA, which will be occupied bysome 25 stores, points of serviceand restaurants.

Already secured tenants ofthe scheme include grocerPolomarket, footwear retailerCCC, pharmacy Apteka podRó˝à and electronics retailerRTV Euro AGD.

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The mall will host some 25 stores, service points and restaurants

Unibep-Pekaes deal finalizedDevelopment and constructioncompany Unibep has acquiredperpetual usufruct rights to2,248 sqm of land located onWarsaw’s ul. Grzybowska, a-long with the design of an officebuilding which is to be built onthe plot. Inwestycja Grzybows-ka, a subsidiary of transport,forwarding and logistics groupPekaes, was the seller.

The two entities signed apreliminary agreement con-cerning the deal in December;the transaction could be final-ized only after Warsaw CityHall failed to exercise its pre-emption rights to the propertyin question.

The Grzybowska 81 proj-ect, which will be locatedopposite the capital’s Warsaw

Rising Museum, will providealmost 10,000 sqm of usablespace. Unibep-owned Unide-velopment will be the develop-er of the scheme, whileUnibep itself will be the gener-al contractor of the facility.

Construction is scheduledto launch in April and finish inQ4 2012.

AAddaamm ZZddrrooddoowwsskkii

Security Closing % change 52-week 52-week % change Total Marketprice (week) low high (year) shares value

on Feb 24 (z∏.mln)

BUDIMEX 94.00 -2.08 77.50 106.10 19.44 25,530,098 2,399.83

CELTIC 20.80 -8.17 17.43 60.55 N/A 34,068,252 708.62

DOMDEV 46.10 -2.43 38.52 61.00 -0.86 24,560,222 1,132.23

ECHO 4.65 0.65 3.86 5.40 18.62 420,000,000 1,953.00

ELBUDOWA 158.00 -0.63 155.00 188.40 -5.84 4,747,608 750.12

ENERGOPLD 3.80 -0.78 3.57 4.50 -12.84 70,972,001 269.69

ERBUD 48.00 -2.99 47.00 61.00 -6.80 12,602,711 604.93

GANT 15.99 -2.26 15.69 26.00 -14.03 20,499,953 327.79

GTC 21.15 1.20 20.75 25.00 -0.66 219,372,990 4,639.74

HBPOLSKA 2.65 -2.57 2.54 3.90 -27.60 210,558,445 557.98

JWCONSTR 14.20 -4.63 11.40 18.69 18.63 54,073,280 767.84

LCCORP 1.69 5.62 1.41 1.73 11.92 447,558,311 756.37

MARVIPOL 9.43 0.43 8.83 22.31 -42.50 36,923,400 348.19

MIRBUD 4.42 -6.95 2.71 4.75 51.89 75,000,000 331.50

MOSTALWAR 47.40 -1.17 46.91 77.00 -29.25 20,000,000 948.00

MOSTALZAB 2.83 -4.07 2.63 4.84 -32.46 149,130,538 422.04

ORCOGROUP 32.45 0.62 19.00 34.20 14.38 14,053,866 456.05

PBG 192.20 -3.85 192.20 252.00 -2.78 14,295,000 2,747.50

PLAZACNTR 3.91 -4.63 3.91 6.39 -35.69 292,647,720 1,144.25

POLAQUA 19.78 3.56 16.00 22.50 22.10 27,500,100 543.95

POLIMEXMS 3.43 -3.92 3.33 5.29 -15.72 521,035,327 1,787.15

POLNORD 31.35 -1.42 30.50 44.00 -2.49 22,242,031 697.29

RANKPROGR 10.20 2.00 9.59 10.96 N/A 37,145,050 378.88

ROBYG 1.83 -0.54 1.70 1.94 N/A 257,390,000 471.02

RONSON 1.40 0.00 1.36 2.10 -9.68 272,360,000 381.30

TRAKCJA 3.49 -9.35 3.49 4.97 -15.29 160,105,480 558.77

ULMA 83.20 2.72 70.00 86.20 7.35 5,255,632 437.27

UNIBEP 9.00 -4.66 6.43 10.30 39.53 33,927,184 305.34

WARIMPEX 10.35 -2.36 7.64 10.85 25.45 54,000,000 558.90

ZUE 14.00 2.19 13.59 15.14 N/A 22,000,000 308.00

Property-related stocks

zł.

6

7

8

9

10

FebJanDecNovOctSeptAugJulyJuneMayAprMar

*on or around the 23rd of the month

Winter strength

Unibep's stock price on the Warsaw Stock Exchange, March

2010 to February 2011* (in z∏.)

Source: Warsaw Stock Exchange

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s

Finance Ministry shocks withtax interpretation feesThe Finance Ministry has published draftchanges to the Tax Ordinance Act whichcould prove costly for entrepreneurs. Thesechanges indicate the finance ministerintends to diversify fees for interpretationsof tax provisions.

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

Big tax offices are responsible for com-panies engaged in specific activities (likebanking), companies with high revenuesand those with links to foreign companies.

The change will be significant for foreignentrepreneurs, since all branches or repre-sentative offices of foreign enterprises aswell as Polish residents managed by non-residents are subject to big tax offices. Justto remind you: being resident and holdingas little as five percent of votes at a compa-

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

Changes to CEIDG systemIn connection with the launch of the CentralRecords and Information on Business Activ-ity (CEIDG), intended for July 1, 2011, thegovernment has accepted several solutionswhich are to improve the database.

The CEIDG is a centralized database ofinformation on entrepreneurs which willmake it possible to register individual entre-preneurs and to make information on entre-preneurs and other entities available to any-one who might be interested via an onlinesearch engine.

Among other things, the changes acceptedby the government include the possibility toadd statements concerning the choice of PITtaxation form to applications to register in theCEIDG system. At present, entrepreneurs mayonly file applications for registration in munici-pal records of business activity with the appro-

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

Sejm changes internationalrelations provisionsOn February 4, 2011, the Sejm accepted theLaw on International Private Law, which isto replace a Law of 1965 of the same title.The law is significant for international rela-tions, both business and non-professional(e.g. marital, parental, etc.), as it settles thequestion of which law should apply in casea legal situation concerns more than onecountry.

Due to the fact that numerous relationshave been covered by EU legislation, thelaw is mainly applicable to relationsbetween Polish entities and entities outsideof the EU. However, several issues whichare not covered by EU legislation so far (e.g.inheritance) will be subject to the new lawin cases involving entities within the EU.The law has been sent to the Senate, whichmay propose amendments.

Stricter provisions on gamblingThe Sejm has started working on a new

amendment to the Act on GamblingGames. The intent behind the changes is toclearly prohibit the organization of and par-ticipation in online gambling.

The conditions of slot machine usagewill also be subject to supervision. In addi-tion, a guest registration system will beintroduced to gambling establishments,including an audiovisual control system tobe used in casinos.

Further changes in e-invoicesAn amendment to provisions on e-invoicesis currently undergoing debate in the Sejm.New provisions will make it possible tosend e-invoices from IT systems and tomake them available via systems based ononline technologies so that they may bedownloaded directly by their recipients.

This will be possible to send and make e-invoices available not only in electronicform via a network, but also using physicalIT data carriers (e.g. CDs, DVDs, hard discs,flash memory drives, etc.). Entrepreneurswill be able to implement their own systemof electronic invoicing or to outsourceimplementation and operation of such asystem to a third party. ●

FEBRUARY 28 – MARCH 6, 2011 BBUUSSIINNEESSSS EENNVVIIRROONNMMEENNTT www.wbj.pl 19

Bart Buyse has become the general director ofLufthansa in Poland, responsible for sales andmarketing of Lufthansa, Austrian Airlines andSWISS. Mr Buyse began his career withLufthansa in the firm’s sales department, later

working at its European headquarters in London. In 2008 hewas stationed in St. Petersburg as general manager for Russiaregions. Mr Buyse is fluent in English, French, German andDutch. His hobbies include travel, interesting lectures andjogging.

Janusz Gaudnik has been made generaldirector of pharmaceuticals firm Zentiva PL. Hejoins the firm from Servier, where he had workedsince 1994. During his time at Servier, MrGaudnik held a variety of posts, including

national sales manager and deputy regional operation managerresponsible for the CEE region. Since 2006 he has held GMposts, first in Slovakia and later in Ireland. Mr Gaudnik is agraduate of the Medical University of Silesia in Katowice andthe Warsaw School of Economics.

Dominika Jędrak has joined ColliersInternational, taking up the post of directorwithin the research and consulting department.She will be responsible for the operational workof the department, focusing on consultancy

services for the office, retail, industrial and hospitality sectors.Ms J´drak joins the firm from Cushman & Wakefield, whereshe had been employed for over 10 years, most recently as amarket analyst specializing in the CEE market. She is agraduate of the Wy˝sza Szko∏a Hotelarstwa, Gastronomii iTurystyki in Warsaw and is a fluent English speaker.

Sebastian Mikosz has been appointed a senioradvisor at Societe Generale Corporate &Investment Banking, where he will help the bankto define its strategy for development in Poland.Mr Mikosz most recently held the post of CEO at

Lot Polish Airlines. In the past he was a director with DeloitteBusiness Consulting’s Warsaw branch, vice president of thePolish Information and Foreign Investment Agency, andmanaging director of French Chamber of Commerce andIndustry in Poland. Mr Mikosz is a graduate of the ParisInstitute of Political Studies. ●

who’s news?

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

Please send submissions to: aappppooiinnttmmeennttss@@wwbbjj..ppll

Labor market

Unemployment jumps in January Is the government’semployment policy awaste of money?

Unemployment in January thisyear grew to 13 percent from12.3 percent in December2010, Poland’s Central Statisti-cal Office revealed last week.

Commenting on the news,Deputy Labor Minister Cze-s∏awa Ostrowska told journaliststhat unemployment for Febru-ary would probably remain closeto the January figure.

“There are no big bankrupt-cies. Also, I do not expect ahuge rise in the number ofunemployed,” she said. “Begin-ning with March, the unem-ployment rate will start to fallseasonally.”

Economists warn, however,

that the government’s currentemployment policy is ineffec-tive. Last year, it spent almostz∏.7 billion on training pro-grams, internships and grantsfor the unemployed.

This year, due to budgetconstraints, only z∏.3.2 billion

has been allocated to fightunemployment. However, itappears that there is also aneconomic justification for cut-ting spending. Recent researchshows that state intervention inthe labor market is a waste ofmoney and that numerous

training programs and coursesorganized for the unemployedyield no results. Indeed, areport by the Ministry ofRegional Development statedthat both the trained anduntrained unemployed needalmost the same amount of timeto find a job, Puls Biznesu wrote.

Surprisingly, the averagetime taken to find a job by thosewho had participated in specialtraining programs was a monthlonger than for those who hadnot.

According to former Econo-my Minister Jerzy Hausner, themain reason for this ineffective-ness is that the politiciansresponsible for employmentpolicy lack the right skills them-selves. AAlleexxaannddeerr HHaayyeess,,

GGaarreetthh PPrriiccee

Greenhouse-gas emissions

The cost of going greenPoland could cut athird of its emissionsby 2030, says theWorld Bank

A “very ambitious” set ofmeasures presented last weekby the World Bank wouldenable Poland to cut its green-house-gas emissions levels sig-nificantly over the next 20years, but would require signif-icant sacrifices.

According to new figuresfrom the World Bank, transi-tioning to a low-emissionseconomy would involve a GDP

reduction of one percent peryear and around 140,000 jobcuts annually through 2030,with losses peaking in 2020.

Erika Jorgensen, leadauthor of the report, describedthese losses as modest. ButBeata Jaczewska, head ofPoland’s the Department ofEuropean Affairs at EconomyMinistry, was more cautious.

“One percent of GDP is alot, and the government con-siders studies such as this oneas only a basis for discussion,”she commented upon therelease of the report.

Indeed, the World Bankprojects that the impact of itssuggested reforms on Poland’sGDP would be more thantwice as high as for the rest ofthe EU, with emission-inten-sive sectors bearing the heavi-est burden. The World Bank’smodels also forecast a 20 per-cent rise in Polish electricityprices, which is also much high-er than in the rest of the EU.

Interestingly, Poland’s coal-dependent energy sectorwould not necessarily have thetoughest time adapting,according to the report. Trans-

port is currently the sectorwith the fastest growing emis-sions in Poland, yet it alreadyapplies most of the availabletechnological solutions.

This leaves only compa-nies’ and citizens’ attitudes leftto change. And although itmight not appear very cost-intensive, change in this area isnot free and is very complicat-ed to implement, warned MsJorgensen.

“It will not be easy,” admit-ted Ms Jaczewska. “We have tobuild a social consensus overthese trends.” AAlliiccee TTrruuddeellllee

%

11

12

13

14

Jan 2011Dec NovOctSeptAugJulyJuneMayAprMarFebJan

On the rise again

Unemployment rate (in percent), Jan 2010 to Jan 2011

Source: Central Statistical Office

Contact: Miros∏aw Stefanik

ms@pnplaw.pl

Legal News

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

FEBRUARY 28 – MARCH 6, 2011TTHHEE LLIISSTT20 www.wbj.pl

Rank

Company nameAddressTel./FaxE-mailWeb page

Revenuefrom ownsoftware(z∏. mln)

Totalrevenue (z∏. mln)

Software produced(sectors) Main products

Operating systemsused for software

production

Software languagesused

Softw

are:

Rea

dy-

mad

e /

Dedi

cate

d

Selected clients

Num

ber o

fde

velo

pers

/To

tal e

mpl

oyee

s /

Year

foun

ded

Ownership: Polish /Foreign

Top local executive /Title

1

Asseco Poland SAul. Olchowa 14, 35-322 Rzeszów17 888-5555/17 888-5550info@asseco.plwww.asseco.pl

643.0528.5233.4

946.4929.2443.5

Banking and finance; capitalmarkets; insurance; public

administration; business; energy;telecommunications

def3000; PROMAK; Serat2;KSI ZUS; Asseco FAMS;

eBankart

Windows: NT/2000; XP;Linux; Unix

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

✓✓

PKO BP; Bank Pocztowy;Deutsche Bank PBC; BankGospodarki ˚ywnoÊciowej;TP SA; PZU; Warta; Lotos;

Poczta Polska; MSWiA

WND3,0661991

Adam Góral - 10.4%; ownauctions - 7%; AVIVA OFEBZWBK - 9.6%; ING OFE -

7.2%; OFE PZU Z∏ota Jesieƒ -5.5%; other shareholders -

60.2%None

Adam GóralPresident

2

Oracle Polska Sp. z o.o.ul. Sienna 75, 00-833 Warsaw22 690-8700/22 690-8900info_pl@oracle.comwww.oracle.com/pl

350.0352.0325.0

454.0451.0422.0

All sectors

Oracle Database; OracleFusion Middleware; Oracle E-

Business Suite; OraclePeopleSoft Enterprise; Oracle

Exadata; Oracle Siebel;Oracle JD Edwards; Oracle

Enterprise Manager

Windows; Linux; Unix Java✓✓

PZU; UFG; PKP Intercity;Allegro-QXL; Empik Media &

Fashion; Medana; PGEElektrownia Turów; Dalkia;Cyfrowy Polsat; Emperia;Konex; Dajar; DnB Nord;

Immergas; Orlen; RaiffeisenBank Polska; Polska Grupa

Farmaceutyczna; Sic Lazaro

3,5002501992

NoneOracle Corporation - 100%

Andrzej Dopiera∏aPresident

3

ComArch SAAl. Jana Paw∏a II 39A, 31-864 Kraków12 646-1000/12 646-1100info@comarch.comwww.comarch.com

168.0213.0146.0

729.0701.0581.0

Computer systems for industry,utilities, retail, telecom, media,

government, financial institutionsand banks; MVNO; B2B and

B2C; E and CRM systems; ERP;BSS; OSS; Loyalty; BI

Comarch Egeria; ComarchECOD; Comarch ALTUM;

Comarch MobileID; ComarchAsset Management;

Comarch Rating; ComarchOSS Suite; Comarch Self

Care

WND WND✓✓

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

WNDWND1991

Janusz Filipiak - 32.5%,El˝bieta Filipiak - 10.5%; BZ

WBK AIB AssetManagement - 34.2%

None

Janusz FilipiakPresident

4

Teta SAAl. WiÊniowa 1, 53-137 Wroc∏aw71 323-4000/71 323-4001kontakt@teta.com.plwww.teta.com.pl

85.479.951.7

104.193.263.4

ERP; BI; CRM; commercial,manufacturing and services

TETA Constellation Windows .net✓✓

Wytwórnia WyrobówPapierowych Worwo; ZINO;

Eurocast

1202801987

NoneUNIT4 - 100%

Jerzy KrawczykPresident

5

Biuro Projektowania SystemówCyfrowych SAul. Ga∏eczki 61, 41-506 Chorzów32 349-3500/32 349-3601bpsc@bpsc.com.plwww.bpsc.com.pl

63.738.419.7

63.738.437.0

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

transport

Impuls 5; mHR; Impuls BIAIX; Solaris; Win 2003/8;

Linux

Borland Delphi 2006;Microsoft ASP; .net; Crystal

Reports

✓-

Dom Maklerski BZ WBK;Famur; ZM Soko∏ów

Jaros∏aw

482431988

WNDIgnacy Miedziƒski

President

6

Young Digital Planet SAul. S∏owackiego 175, 80-298 Gdaƒsk58 349-4444/58 349-4411ydpmm@ydp.com.plwww.ydp.com.pl

63.1128.481.8

18.7108.957.8

Educational programs forlanguage learning; multimedia;

dictionaries and manuals;software and solutions for

children with special educationalneeds; internet portals

(education and language);platforms for eLearning; training;managerial; dedicated courses;

applications developed onrequest

Series Europlus+; eduROMseries; eduSensus series;

Nauczyciel.pl portal;dedicated eLearning courses;

courses in professionaldevelopment; ICT training;

multimedia equipment

Windows 2000; XP; Vista;Windows 7; MAC 10.2 and

higher; Linux

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

WNDWND

Media Markt; Empik; IXION;P.W.D. Apex; Harpo;

Educarium; Moje bambino;DHO; Edusklep; Merlin;

Komlogo

393421990

NoneWerner SöderströmOsakeyhtiö - 100%

Waldemar KucharskiPresident

7

SAS Institute Sp. z o.o.ul. Gdaƒska 27/31, 01-633 Warsaw22 560-4600/22 560-4604polska@spl.sas.comwww.sas.com/poland

52.542.842.0

73.760.058.6

All sectors of the economy(banking; insurance;

telecommunications; energy;industry; trade; logistics;

public sector)

SAS Business IntelligenceServer; SAS Data IntegrationServer; SAS Analytics; SAS

Enterprise Miner; SASEnterprise Risk Management;

SAS Financial Intelligence;SAS Customer Intelligence;SAS Strategic Performance

Management

Windows; Linux; Solaris; AIX;HP-UX; Z/OS

ANSI C; C++; Java; .netWNDWND

WND

WND1871992

NoneSAS Institute - 100%

Alicja WieckaManaging Director

8

Macrologic SAAl. Armii Krajowej 80, 35-307 Rzeszów22 511-8115/22 511-8116office@macrologic.plwww.macrologic.pl

47.745.338.4

54.451.443.1

SMEs Xpertis WND WND✓✓

Termetal; Treko Laser;Garbarnia Szczakowa;

Agencja RezerwMateria∏owych

503121986

Bogdan Michalak - 32.5%;W∏odzimierz Napiórkowski -

19.9%; KrystynaNapiórkowska - 5.3%;

Andrzej Odyniec - 4.4%;Krzysztof Szczypa - 5.6%;Aviva Investors Poland -

8.2%; other shareholders -23.2%None

Kszysztof SzczypaWND

9

Sygnity SAAl. Jerozolimskie 180, 02-486 Warsaw22 571-1000/22 571-1001info@sygnity.plwww.sygnity.pl

42.856.843.7

361.5568.7568.4

WND

Testing applications; ERP -Enterprise Integrated

Management System; CRM;warehousing data analysis

systems; BusinessIntelligence; logisticssystems; processing;

archiving and workflow;integrated systems for

telecommunications; railinclusive e-learning; the

development ofcommunications systems

WND WND✓✓

NBP; BG˚; Pekao; MInistry ofLabour and Social Policy;¸ódê City Hall; MPWiK;

University of Silesia

WND9091991

Legg Mason ZarzàdzanieAktywami - 12.5%; Pioneer

Pekao InvestmentManagement - 8.6%; ING

Towarzystwo FunduszyInwestycyjnych - 5.9%

WND

Norbert BiedrzyckiPresident

10

IMPAQ Sp. z o.o.ul. 1 Sierpnia 6A, 02-134 Warsaw22 314-6000/22 314-6001sekretariat@impaq.plwww.impaq.pl

29.733.9WND

30.634.7WND

Banking; insurance; telecom;utilities; retail

WND Windows; Linux .net; Java; C#; VB; C++✓✓

NSN; PTC; NCR; Getin

1341921993

NoneIMPAQ Information

Management Holding - 100%

Andrzej KawiƒskiGeneral Director

11

Hogart Sp. z o.o.ul. Gwiaêdzista 19, 01-651 Warsaw22 639-2600/22 639-2605biuro@hogart.com.plwww.hogart.com.pl

22.020.020.0

22.0WND20.0

Finance; insurance;manufacturing; telecom;

pharmaceutical sector; media;services; construction

Oracle JD Edwards; InforFMS SunSystems; Qlik View

WND WND✓

WND

Egis Polska; Geodis CalbersonPolska; Wardyƒski i

Wspólnicy KancelariaPrawnicza; ThyssenKrupp;Polskie Ksià˝ki Telefoniczne

1580

1992

Marcin Penczek - 44.5%;Janusz Fortuna - 44.5%

Stijn Lauwers - 11%

Marcin PenczekPresident

12

Innovation Technology Group SA ul. Wo∏owska 6, 51-116 Wroc∏aw71 797-2666/71 797-2606itg@itg.plwww.itg.pl

14.910.615.3

18.937.822.9

Banking and finance; retail;general business; public sector

WNDWindows 7; Windows XP;

Windows Server 2008;Windows Server 2003

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

✓✓

Lukas Bank; SantanderConsumer Bank; Raiffeisen

Bank; WestLB; Kredyt Bank;Orlen; PWPW; Douglas;JMD; Energia Pro; Volvo;

Toshiba; Pol-Aqua

351661991

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

5%WND

Wies∏aw FrydrychPresident

13

Athenasoft Sp. z o.o.ul. Leszczynowa 7, 03-197 Warsaw22 614-3422/22 614-3469info@ath.plwww.ath.pl

12.412.711.2

12.813.011.4

Construction; insurance; finance

Norma PRO; NormaSTANDARD; Norma EXPERT;

Buduj z G∏owà;INTERCENBUD;

NieruchomoÊç PRO; Capital;CAD Rysunek

Windows: 7; XP; Vista C#✓-

Kompania Weglowa;Skanska; Hochtief; Warta;

PZU; NBP; PKP; Gaz-System;Orlen

1848

1998

Stanis∏aw Chmielewski -50%, Tadeusz MoÊcicki -

50%None

Stanis∏aw Chmielewski;Tadeusz MoÊcickiPresident; Vice President

14

Heuthes Sp. z o.o.ul. Koƒski Jar 8/30, 02-785 Warsaw91 460-8974/91 460-8974marketing@heuthes.plwww.heuthes.pl

9.68.38.1

9.68.38.1

Banking, finance and insurance;SMEs

ISOF; GRYFCARD;MULTICENTAUR;GRYFBANK; ISOF-

WORKFLOW; CRM; DMS;HOME/CORPORATE

BANKING

Linux; Windows; i5 OS (OS 400)

HDB✓✓

Pekao; BG˚; GBW; DnB NordPolska; MR Bank

3049

1989

Wojciech Grzybek - 53.8%;Wies∏aw Kawiƒski - 23.1%;

Grzegorz Kowalewski -23.1%None

Wojciech GrzybekPresident

2009 / 2008 / 2007

IT & Telecoms

Computer Software ProducersRanked by revenue from own software sales in 2009 www.bookoflists.pl

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

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 andtypographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka,ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprintedor reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

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

Warsaw, March 3rd, 2011

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

Rankings revealed • Top companies recognized • WBJ Awards handed out

The official launchof Book of Lists 2011

Launch Event Partners: Lottery Sponsors: Media Partners:

FEBRUARY 28 – MARCH 6, 2011AARRTTSS && CCUULLTTUURREE22 www.wbj.pl

Seventies rockers Smokie,Slade and The Sweet joinforces this March to launch afull-on, tri-pronged attack onyour sense of nostalgia. “WeLove Rock” brings this trio

of best-selling bands to War-saw, and with them a collec-tion of their greatest hits.“Living Next Door to Alice,”

“Ballroom Blitz” and “OhCarol” are just a few of theoldies still bringing the housedown. ●

KADETË is the product ofthree self-taught musiciansand jazz lovers from Warsaw.Their lack of classical musiceducation is more than madeup for through their sponta-neous performances and origi-nal compositions: a breath offresh air on the young Polishjazz scene. Their inspiration isa wide range of musical influ-ences, from Coltrane to Faith-less and Stevie Wonder. ●

Concert

Glam in the capital

Jazz

Aural freedomKADETËJazzownia Liberalna ClubMarch 6, 7:30 pm

We Love Rock: Slade,Smokie & The SweetTorwar StadiumMarch 3, 7 pm

The classic tale of a geishaconsumed by her love for anAmerican Navy officer. Mar-iusz Treliƒski’s productionabout the loss of love and cul-ture has been running atTeatr Wielki for more than 10seasons. ●

Opera

Octaves

of tragedy

“Madame Butterfly”The Polish National Operaat Teatr WielkiMarch 4, 7 pm

With a CV that includes liveappearances on Channel 4,

BBC Radio and the LateShow with David Letterman,the White Lies head to War-saw to play tunes from“Ritual,” their latest album.Big on the festival scene, theEaling-based band has

drawn comparisons to JoyDivision, Editors and Inter-pol on account of a soundthat has been described as“dark yet uplifting.” Supportcomes courtesy of Croco-diles. ●

Concert

Dark yet upliftingWhite LiesKlub Stodo∏aMarch 5, 7 pm

Centre for ContemporaryArt at Ujazdowski Castle ul. Jazdów 2www.csw.art.pl

Czarna Gallery ul. Marsza∏kowska 4www.czarnagaleria.art.pl

Galeria 022, DAP, Lufcik ul. Mazowiecka 11awww.owzpap.pl

Galeria 65 ul. Bema 65www.galeria65.com

Galeria Appendix 2 (Praga)ul. Bia∏ostocka 9www.appendix2.com

Galeria Asymetria ul. Nowogrodzka 18awww.asymetria.eu

Galeria Foksal ul. Foksal 1-4www.galeriafoksal.pl

Galeria Milano Rondo Waszyngtona 2A (Praga)www.milano.arts.pl

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

Galeria XX1 Al. Jana Paw∏a II 36www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8www.zoya.art.pl

Green Gallery ul. Krzywe Ko∏o 2/4www.greengallery.pl

Katarzyna Napiórkowska Art Galleryul. Âwi´tokrzyska 32, ul.Krakowskie PrzedmieÊcie 42/44and Old Town Square 19/21www.napiorkowska.pl

Królikarnia National Galleryul. Pu∏awska 113awww.krolikarnia.mnw.art.pl

Le Guern Galleryul. Widok 8, www.leguern.pl

Museum of IndependenceAleja SolidarnoÊci 62www.muzeumniepodleglosci.art.pl

National Museum in Warsaw Al. Jerozolimskie 3www.mnw.art.pl

Polish National Opera atTeatr WielkiPl. Teatralny 1www.teatrwielki.pl

Pracownia Galeriaul. Emilii Plater 14www.pracowniagaleria.pl

Rempex Art and Auction Houseul. Karowa 31www.rempex.com.pl

Royal CastlePl. Zamkowy 4www.zamek-krolewski.com.pl

Simonis Galleryul. Burakowska 9www.simonisgallery.com

State ArchaeologicalMuseum in Warsawul. D∏uga 52 (Arsena∏) www.pma.pl

State Ethnographic Museumul. Kredytowa 1www.ethnomuseum.website.pl

Historical Museum of Warsaw Old Town Square 28-42www.mhw.pl

History Meeting House of Warsaw ul. Karowa 20www.dsh.waw.pl

Warsaw Philharmonic ul. Jasna 5www.filharmonia.pl

Warsaw Rising Museum ul. Grzybowska 79www.1944.pl

Wilanów Palace Museumand Wilanów PosterMuseumul. St Kostki Potockiego 10/16www.milanow-palac.plwww.postermuseum.pl

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

Museums, galleries and venues in Warsaw

Art Fresh Festival is directedat expats as well as generalart enthusiasts and forms anintroduction and overview ofcontemporary Polish art-works. The event is an expan-sion of an annual conceptstarted many years ago by thecommunity volunteer organi-zation, American Friends inWarsaw, which has teamedup with organizer JanuszRybak to bring in fresh tal-ent.

The festival takes its inspi-ration from the types ofhome-grown art fairs foundin suburban America. Here,you can purchase whatevertakes your fancy – directfrom the artist in question.Invited artists include gradu-ates and current studentsfrom the Warsaw Fine ArtAcademy, the EuropeanAcademy of Arts, variousWarsaw art associations –including “Frontier of Art”and “Storehouse of Art” – aswell as students from War-saw’s American and BritishHigh Schools. Over 70 indi-viduals will exhibit and sell inthis year’s festival.

Amidst all the viewingand mingling, those interest-ed can also watch the artistsat work. There will be live

demonstrations of how tomake a linocut and how toexperiment with graphic art.The kids will also feel athome, with special arts andcrafts play-pens (“children’sspots”) set up for their con-venience. The festival willfeature all manner of artworks, from painting to pho-tography; prints and textile

work, as well as pottery,ceramics, sculpture and jew-elry. All items are for sale.

A grass-roots art exhibi-tion, this event will have youpicking out a bit of the unex-pected – at a fraction ofgallery prices. ●

The festival will run all dayuntil 8:00 pm

Art Event

FFrreesshh iiddeeaassArt Fresh FestivalSheraton Hotel (ground floor)March 6, 12:30 pm

Queens of the Stone Agecome to Stodo∏a Club, May 5

Chris de Burgh comes toWarsaw’s Torwar Stadium onMay 16

Robin Gibb brings back theBee Gees magic on May 29

Katie Melua hits SalaKongresowa on May 31

Rod Stewart will beperforming in Toruƒ on June 11

Bobby McFerrin on June 16and Bonny Tyler on June 30 –both at Sala Kongresowa

Jeff Beck performs as part ofWarsaw Summer Jazz Days onJune 21 at Sala Kongresowa

If you’re planning for a smashingsummer, don’t forget theHeineken Open’er, which runsfrom June 30 to July 3 inGdynia. Performers includeColdplay, Caribou andPrimus. Get tickets now atwww.opener.pl,www.ticketpro.pl orwww.heineken.pl.

Advance Bookings

Some content providedby the Warsaw Insider.For more information onculture and enter-tainment in Warsaw this month, pick up the March issue.

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FEBRUARY 28 – MARCH 6, 2011 LLAASSTT WWOORRDD www.wbj.pl 23

sare_268x81.ai 22-03-10 13:25:37

TThhee mmaakkiinngg aanndd tthhee bbrreeaakkiinnggTech Eye

Like most people, Techeye derives agreat deal of satisfaction from mak-ing other adults cry their guts out.Why, just last week at the localdiner, we triumphantly made a wait-er squeal like a hormonally imbal-anced pig skydiving for the first time.Served him right too, after he care-lessly allowed a whiff of picklestench to befoul our food.

And then there was the cop whotried to fine us for taking publictransportation without a ticket. Hewas a tough nut to crack, but thetears flowed freely once we pointedout that he had hands like a little girland was probably a huge disappoint-ment to his parents, friends andmost strangers. If you’ve never seena man taser himself in a fit ofdespair, we highly recommend it.

Emotional persecution is just oneof our many hobbies, however.Another is designing new items toimprove the future of Humanity.

In the old days, this was a labor-intensive pastime. First you had tocome up with an idea, which involvedlarge quantities of vodka and photosof cute and inspirational pandas.Once you had an idea, you needed totake precautions so that greedy com-panies didn’t steal it (like our urine-powered battery concept – damn youAqua Power System Japan!).

And the final step in the processwas inevitable, soul-crushing rejec-tion by some faceless corporate lack-ey. When that happened, Techeyewould go out and make ourself feelbetter by making someone else cry,at which point the cycle would beginanew.

Printing a better worldTimes are changing, though. Therise of the internet – and morerecently, 3D printing – has made itpossible to improve the world with-out leaving the comfort of your mar-mite-encrusted bathrobe.

How’s that? Well, something newis evolving: design and co-creationcommunities. These are groups, usu-ally centered around a creative plat-form, which trade ideas and putthem into practice. Shapeways andThingiverse – arguably the most suc-cessful communities to appear so far– were both founded in 2008.

The two take significantly differ-ent approaches, however. US-basedThingiverse is the more user-drivenand nerd-gasmic of the two, having

been created by MakerBot Indus-tries, which sells open-source,“much-assembly-required” 3Dprinter kits like Thing-O-Matic andCupCake CNC. Community mem-bers thus trade designs and adviceon how to make them work on theirown, homemade printers.

The Netherlands’ Shapeways,meanwhile, is a more centralized,profit-oriented affair. The companyallows users to design their ownobjects and then submit them, but ithandles the printing itself. For talent-ed designers looking to earn a returnon their work, Shapeways also servesas a marketplace – its shop allowsusers to sell their wares by adding amarkup onto the company’s owncosts. Even the firm’s logo embodiesthis community-meets-capitalismapproach, as it contains an ever-changing array of user-created objects.

Both approaches to 3D designsharing are naturally limited by thetechnology itself. On the other hand,3D printing technology is developingfaster than Grandpa Techeye’s nosehair grows, which is to say damnedfast. Shapeways, for example, intro-duced full-color 3D printing andadded glass to its repertoire of print-ing materials just in 2010.

The power of product namesThis is all seriously fascinating stuff.So fascinating, that Techeye almostforgot to make fun of the pasty,basement-dwelling nerds who formthe heart of these communities. Butwhen people are creating wonderful-ly queer things like “gyroid magneticassembly,” “ceiling cat!”, “love gas-ket – fractal” or “ferret hammockbracket,” it’s easy to get lost in thesheer awesome of it all. And don’tget us started on “fat camp selfassembly.”

Those are all examples of designstuff from Thingiverse, bythe way. But theproducts offered byShapeways, whilemore polished thanthings born of DIYprinters, boastequally dork-worthynames – “Autobotring,” “letter openermeat cleaver” and“Color it! Wiggle” aregood examples. On theother hand, “MichiganCentral Station modelpaper clip holder” seemspretty dumb at first, but its cre-ator cleverly notes “everyone

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

Having spent a good deal of timechecking out Thingiverse, Shape-ways and other 3D printing efforts,Techeye is getting ready to create ourfirst, world-bettering designs. Per-haps we’ll start with something sim-ple, like a “magnetic meat gasket –ceiling ferret wiggle!”

Yes, that’s exactly what we’ll do.The other designers’ hot tears of envywill make it all the more satisfying. ●

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

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COURTESY OF SHAPEWAYS

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