March 2014vol. 7 no. 3(41)

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Kraków’s global aspirations

Advisory:Four internal scams that could bleed you to death

City News:Australian firm drills for coal near Lublin

Politics:Dusk for Ukraine, dawn for Poland?

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4 Krakow’s global aspirations

Advisory

8 Doom and gloom gives way to … flat taxes

9 Dusk for Ukraine, dawn for Poland?

10 Four internal scams that could bleed you to death

11 Equties News (11) Eurocash wholesaler posts PLN 74.8 mln Q4 net profit, far below

expectations (12) GTC developer back in the development game, with

200 million pln debt placement (13) WSE-operator GPW posts PLN

28.6 mln. net profit in Q4 vs PLN 24.1 mln expected (14) P4 mobile

operator records PLN 707 mln EBITDA in 2013 on PLN 3.72 bln

revenues (15) MCI buys 20% of O2 portal from Innova Capital

17 FDI News (17) Poland’s Largest Solar Park; Stora Enso plans to invest Euro 28

million in Murow sawmill (18) ArcelorMittal opens Polish rail production

facility (19) Domino’s targets pizza-starved Poles (20) Indian companies

looking at Poland (21) Azerbaijanis in Poland (22) New investments in

Krakow Zone; New investors in Lodz SEZ

23 City News (23) Kraków; Łódź (24) Szczecin (25) Trójmiasto (26) Poznań; Wrocław

(27) Katowice (28) Lublin

29 Chambers of Commerce News (29) Spain; Netherlands; Switzerland (30) Belgium; India’ Portugal (31)

United Kingdom; Scandinavia (32) United States (34) Germany; Italy

35 Events

35 BCC – Grand Gala of Polish Business Leaders

36 Foundation for Corporate Responsibility

celebrates annual dinner dance

37 CEE Retail Real Estate Awards

38 Canada’s Winter Reception

39 Gala of the French Chamber of Commerce

Table of Contents

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March 2014vol. 7 no. 3(41)

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The city didn’t plan it this way. No major initiatives to support the industry. No sig-nificant coordination of pol-icy. And certainly no grand vision. And maybe that’s the reason it happened. Last month it became of-ficial: Krakow is the number one destination in Europe for business services centres, finally displacing dour Dublin in Tholon’s annual global rankings.

Krakow’s architectural splendor and rich educational traditions have been key fac-tors in driving massive foreign investment in the city over the last 5 years, from the likes of global giants State Street, Google and PhilipMorris.

Krakow’s continued ascent – it was not in the top 30 just 5 years ago – has got the city’s casually-coordinated business com-munity thinking: how good could it be if we actually worked together to coordinate development, policy and infrastructure?

At the behest of Andrew Hallam, who founded ASPIRE, the association that fo-cuses on Krakow’s shared services sector, issues of infrastructure, planning and policy were centre-stage at the recent con-ference Made In Kraków in late February, which brought together top executives from Krakow’s biggest sector (shared ser-vices) with key city officials including the Mayor Jacek Majchrowski, top tourism and infrastructure chiefs, and the city’s top real estate developers.

The idea behind the conference reflects both the positive potential of the city – it recently surpassed Lodz as Poland’s sec-ond-largest city – as well as the palpable feeling that it could all go awry if the city and its business community don’t start cooperating closely to build the city’s infrastructure.

The city is hard at work laying the foun-dations for the next stage of growth – bal-anced growth that will not compromise Krakow’s charm.

During the conference, different people presented their visions for the develop-ment of Krakow, in areas such as trans-portation, airport expansion plans, office developments, conference centres and concert halls. Participants included rep-resentation from Jagiellonian University, the University of Economics , University of Education, University of Science and Technology and the Technical University of Krakow, all of whom are challenged to keep up with the existing trends in Krakow and provide relevant educational skills to feed these fast-growing industries.

Here below we present details of the multiple initiatives in Krakow that will ce-ment the city’s position on the global map in several key industries and lay the foun-dations for the next generation of balanced growth:

ICE Conference Centre - to be opened in fall 2014Krakow is stealing a step on Warsaw with its major investment in the International Conference Exhibition Centre (ICE). While the capital city has dithered and dallyed and debated the need for such a facility, Krakow’s ICE will open in October, firmly putting Krakow on the map for global or-ganizers of large-scale conferences and events.

The ICE will be able to accommodate 3200 guests, with a complex of conference halls with regulated moveable walls, a glazed three-floor foyer with a view of the Wawel Castle, and a multifunctional exhi-bition hall. With over 36.000 m² of confer-ence space, the Auditorium alone can host 2000 people, and is designed with world-class acoustics for concerts and musical events – and is capable of hosting confer-ences for between 1,800 and 2,100 people. Additionally, plans include an auditorium hall for 600 people, a 1,000 m2 multifunc-tional space, and 32 meeting rooms.

The building has been designed in such a way as to host various types of congresses, conferences, concerts, theatrical shows, exhibitions and other cultural and social events. The high standard of the building will place it among the most exclusive con-gress centres in Europe.

Total cost will amount to PLN 357 million.

Of special note is the Theatre Hall, which has been designed with folding seats which allow the floor area to be increased

when being used for banquets or exhibi-tions. Travelling from the airport takes about 20 minutes, and from the main rail-way station, it takes barely 15 minutes to get to ICE.

“Malopolska is consistently building its image as a leader in the international meetings industry. To support the ICE, the Krakow Film Commission has prepared an advertising spot promoting the most interesting places in Malopolska. Thanks to a coordinated promotional campaign, all of us - ICE Kraków Congress Centre, the Krakow Convention Bureau, and the Malopolska Region – will benefit”, said Dorota Pierzchalska of the ICE.

The ICE Kraków Congress Centre proj-ect was chosen in an international archi-tectural competition in 2007. The proj-ect was created by the Ingarden & Ewý Architekci firm from Krakow and Arata Isozaki & Associates from Tokyo. The proj-ect received an award for its spectacular form, gently melding with the bank of the Vistula River. Its facade is constructed with the use of glass and titanium-zinc sheets.

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Moreover, the choice of stone tiles, such as granite, lime and sandstone, is a reference to the typical materials used throughout the architectural history of Wawel Hill.

The Chief Architect of the City of Krakow – Tomasz Bobrowski:

“The role of the Chief Architect in a city like Krakow is a huge challenge and re-sponsibility. On the one hand, there is the historic fabric of the Old Town, successful-ly protected from cultural changes, and on the other there is the obligation to make the current constructions worthy of our city. We have almost no modern, world-class architectural facilities. However, this year we will witness the opening of the beautiful Congress Centre and the sports and entertainment arena.”

“Krzysztof Penderecki visited the con-struction site of the Congress Centre near the Grunwaldzkie roundabout. He had been invited to visit the premises of the vigorously constructed structure by the designers from the Ingarden&Ewy Architekci company. However, the compos-er also revealed that it was his professional

curiosity that had drawn him to the con-struction site as well. After all, the mod-ern ICE Kraków Centre will become home to the largest concert hall in the capital of Malopolska. Today, the stately facility being erected opposite Wawel is the flag-ship city project. “You cannot approach this structure like you would a stadium, it is a very complex and complicated design. Each of the three halls is different. The main one is the concert hall, the other two serve artistic and theatrical, as well as con-ference and congress purposes,” explains Jacek Ewy, its co-designer.

While the Congress Centre still encoun-ters some problems related to the sched-uling of a sufficient number of events in order to fund the facility, interest in the facility is high. The first parties eager to book dates at the then non-existent facil-ity turned up already at the construction agreement finalization stage. Today, nego-tiations are being conducted with regard to events in 2017. The entertainment arena and the ICE Kraków fulfil Krakow’s needs for large facilities.

“Without this facility it would be hard to imagine the development of culture and tourism in Krakow,” said the Mayor Jacek Majchrowski when witnessing the prog-ress of the construction.

Nowa Huta and Technology ParkKrakow’s biggest experiment in its glori-ous socialist past was the massive indus-trial steelworks of Nowa Huta, set just on the edge of the city. Now an eyesore of epic proportions, the city plans a huge redevelopment of this post-industrial space – with the intention of converting it from an eyesore to an icon of the city’s rebirth. This is an area of approximately 230 hectares located along the railroad tracks.

“Talking about the re-development of Nowa Huta Przyslosci, it can not be seen in isolation from the development of Krakow”, said Elzbieta Koterba, vice presi-dent of Krakow. “Already we have begun the search for money that could be spent on land consolidation and the search for investors to develop the area”.

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The Nowa Huta Przyslosci (NHP) will be based largely on the lands of the for-mer steelworks. The city plans to spend about 400 million pln on preparation of the land for investors, putting in place infrastructure such as roads and utilities. Additionally, plans include a logistics cen-tre, which will benefit from the extensive rail connections on this 230 hectare site. The area also opens up the potential for large-scale office development and mixed-use developments.

Another development project is the sci-ence and technology park that stretches south from the railroad tracks, and em-compasses 128 hectares with room for nearly 420,000 sm of leasable space for of-fices and research centers. Preparation of the land will require investments of about 500 million pln. The third project, named Błonia 2.0, is a redevelopment requiring in-vestment of 165 million pln on 37 hectares.

Another area of the “old” Nowa Huta, to be redeveloped is the “centre” which has been inscribed on the UNESCO World Heritage List. This area will be revitalized and redeveloped, with ample cultural facil-ities. Krakow authorities said they will in-vest 135 million pln for its reconstruction.

Hundreds of vacant homes While most of the Krakow authorities cast a positive light on development plans, no one had easy answers for the residential side of Nowa Huta, which is generally derelict. While Koterba said the area could eventu-ally provide 30000-40000 jobs, the issue of residential renewal seems to be unclear. Issues such as access to the city centre and lack of retail remain unanswered.

Koterba also fielded questions about the financial costs to the city. While costs to Krakow are estimated at about 2 bil-lion pln, as much as 80 percent of this may come from EU funds. “It will not be a huge money commitment from the city. Private investors may end up investing as much as 4 billion pln in mulitple projects, which will mean robust job creation”, said Koterba.

Shared Services – The Jewel in the CrownWhile the whispers are constant that the Shared Services sector is fickled and will move wherever costs are lowest, Hallam insisted that not a single Shared Service centre has ever left Krakow. And he aims to keep it that way. According to Hallam, more than 3000 new jobs will come to Krakow in

2014 in the advanced business services sec-tor, bringing the total to 38,000.

“The business services and IT sectors in Poland are large, and Krakow is at the top of the league charts. This year, we sur-passed Dublin and we are now number one in Europe”, said Hallam.

In the latest ranking of “Tholons Top 100 Outsourcing Destinations “, prepared every year by consulting firm Tholons, Krakow took 9th place, just behind the Asian giants in the field. While Krakow moved up, Dublin slipped down a slot.

The Mayor of Krakow Jacek Majchrowski stressed that companies in Krakow are specializing mainly in financial services such as accounting, but also advanced IT industry, high-tech, and newly-created centers of research and development.

“Krakow’s business services are increas-ingly offering more complex services, which also means higher wages for the em-ployees. The city counts on continuation of this trend, and we plan to attract new global companies and help those already here grow further”, said Majchrowski.

Companies in Krakow provide servic-es to 40 countries in 34 languages. “The advantages of Krakow are well-qualified

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young people, fluent in multiple languag-es. And the development of supporting transport infrastructure, such as the air-port and tram routes, are very important. We also plan to use the new ICE conven-tion center for various meetings”, said Magdalena Wlodek, director of Finance at PMI Service Center Europe.

Wojciech Poplawski, Director of Accenture’s BPO Services Centres in Poland, said that global confidence in Krakow and Poland is growing. “There is increasing confidence that large multina-tionals can safely set up centers of exper-tise to serve clients globally”, he said.

According to representatives of compa-nies from the advanced business services, the challenge for the universities is to develop students’ analytical skills and in-tercultural communications. “The key is to build competencies that will allow our employees to go into higher management ranks, where technical specialization is not so important “, said Poplawski.

Airport traffic breaking new re-cords – backed by EU fundingKrakow’s Balice airport continues to break new records, with January continuing

the record-breaking trend, with a total of 233,883 passengers, about 9% more than January 2013 – and the best January result in the history of the airport.

“Such good results are a result of increas-ing the number of connections offered by carriers and their locations, nearly 30,000 on scheduled flights”, said Jan Pamuła, pres-ident of MPL Kraków-Balice. Additionally, new flight connections from Alitalia, which was not in the winter season last year, and increased frequency from both airberlin and Aeroflot helped boost traffic.

The best performing carrier was airber-lin, which transported 9500 people (an in-crease compared to January 2013 of 114 per cent). Aeroflot is also growing fast, with an increase of 86 per cent.

For 2014, the airport authorities expect to serve 3.7 million, up from 2013’s number of 3.64 million. However, optimists point out that the number could exceed 4 mil-lion if the January strong trend continues throughout the year.

Nearly 21 million pln of funds from the EU will boost the investment plans of the Krakow-Balice Airport, which recently signed an agreement within the frame-work of the EU’s Malopolska Regional

Operational Programme. The project has been recognized as one of the strategic in-vestments for Malopolska. The total proj-ect value is over 44 million pln, so the EU contribution amounts to nearly half. It is the ninth project of the Krakow Airport co-funded from EU funds.

The project consists of three investment projects: the construction and reconstruc-tion of internal transport system, construc-tion of pedestrian walkways linking the pas-senger terminal to the multi-storey car park, and the construction of a railway station.

The entire project will be completed by early 2015. Then, in 2015, additional in-vestment projects will start, as part of a big expansion of the airport, so that Krakow airport will eventually be able to handle 8 million passengers per year.

“Implementation of this project will pro-vide fast and efficient connections within the airport and on access roads leading to the airport. The new internal communi-cation system will be adapted to handle the growing number of passengers and ensure the integration of different modes of transport, including road and rail”, said the president of Krakow Airport Jan Pamuła. n

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March 20148

The Polish tax and social se-curity (ZUS) systems provide incentives for businesses in the form of flat rate tax and ZUS payments. So why do so many business owners not take advantage?

By Steven Foster

The idea is simple. If you are running your own business, you are producing goods or services, doing your bit for the economy and hopefully creating employment. The system recognises that this is well worth encouraging, so both corporations and self-employed businesses pay income tax at the same flat rate of 19% and the self-employed pay low rates of ZUS and health insurance.

Despite the tax advantages on offer, limited liability companies (Sp. z o. o.) are still the standard vehicle for so many busi-nesses. This is very often an unnecessarily expensive way of generating profits. The effect of a limited company on a Polish resident owner is to convert the 19% flat rate tax into a potential marginal rate of 32% and to trigger full ZUS and health in-surance rates if the earnings are paid un-der employment contracts or most Civil Code contracts. Being a foreigner provides no escape from this, unless you are also non-resident.

Extracting profits by invoicing from for-eign companies is fraught with difficulties, not least of which is the requirement to have comprehensive transfer pricing docu-mentation in place and the likelihood that one day the arrangement may be put to the test by the tax authorities. Invoicing from a Polish-registered self-employment is not safe either if the apparent service provider is in fact a part an owner or part of the management team of the business being invoiced.

It’s not all doom and gloom of course. There is a major benefit of running your business through a company in that, bar-ring extreme misfortune or just plain bad management, the company’s legal status provides a protective screen between its owners and its creditors. In the event of

insolvency, it is the hapless creditors who will generally be out of pocket. However, there is another vehicle which offers the same protection against creditors without losing the tax and ZUS advantages – the limited liability partnership.

An LLP has limited partners, who have no exposure to creditors, and a general partner who is fully exposed. However, the general partner is usually a limited compa-ny, owned and controlled by the business owner, with no assets. Potential creditor claims are effectively locked out in just the same way as for limited companies.

Foreigners who are able to own and run a Polish limited company are also able to be limited partners in a Polish LLP. They are treated as self-employed for tax & ZUS purposes, giving them the option of paying

a 19% flat rate of income tax and a com-bined effective cost of PLN 700 per month for ZUS and health insurance.

An LLP also provides a tax-efficient way of remunerating senior colleagues. The le-gal control and representation of an LLP rests with the general partner, so by bring-ing colleagues into the partnership they are able to enjoy the benefits of lower tax and ZUS rates without necessary acquiring any share in the ownership or control of the business.

The self-employment optionFor those of you who are proud owners of a US passport, you may be surprised at how easy it is for you to set up and run a business in Poland. You may have heard that only EU or EEA nationals are allowed to register as self-employed in Poland, but that is not true. Like any foreigners, you can run a business through an LLP and enjoy the tax & ZUS treatment available to the self-employed but, possibly unique among non-EU/EEA nationals, you may also register yourself as self-employed. This is thanks to a little known treaty on business relations between Poland and the USA signed in 1990.

Registering a self-employed business is a simple online process, which takes no more than about 20 minutes. The REGON number is added automatically, along with a NIP number if required. There could be a couple of weeks of delay whilst the Interior Ministry checks whether the business ac-tivity is permitted, but then the business is basically ready to go.

The benefits of the 1990 treaty don’t end with registration of the business. The fact of business registration provides all the justification you need for a residence card. There is no need for a visa and no need for a work permit. A US national may come to Poland, register a self-employed business and apply for a temporary residence card as soon as the online registration is complete.

All this good news doesn’t means that US nationals should rush to the online busi-ness registry and register as self-employed. As well as the lack of any protection from creditors, the tax advantages are cancelled if the purpose of the self-employment is to invoice another company for management-related services. Converting your company into an LLP is likely to be a lot smarter than invoicing it through self-employment. n

Doom and gloom gives way to … flat taxes

“Extracting profits by

invoicing from foreign

companies is fraught

with difficulties”

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“May we live in interesting times”, as was once written... and indeed, few, even a couple of months ago, would have expected that all Europeans would be witness to history to the extent we have been in the last few days and weeks in Ukraine. Moreover, how-ever the crisis develops – or resolves itself – there is little doubt that the consequences for Poland, Central Europe and the European Union will be dramatic.

By Marek Matraszek

The intentions of President Putin are in one sense clear – over time, to restore Russian influence in the post-Soviet space on a model that is akin to that of the Soviet Union itself. That involves a loyal Russian core around Moscow, satellite states in the periphery of the old Soviet Union, and then finally – perhaps most challengingly – a buffer of pliant and docile neighbour-ing countries in the East of the European Union and NATO. In seeking to achieve that goal, Putin must rely on key European Union countries such as France and Germany, and above all the United States, acquiescing in this project, at least tacitly.

This is the first reason why the position of Poland is key in the success or failure of the Putin Project. Poland has led the way in the last 20 years in supporting Ukrainian inde-pendence, and then the progress of Ukraine towards the West. Although hampered by the scepticism of some EU countries, with the support of countries such as Sweden and the Baltic States Poland worked hard to persuade key policy makers in Brussels and Washington that a Ukraine permanently linked to the West would be good for regional stability, and also encourage Russia itself to undertake market and democratic reform. Putin’s violent reaction to the collapse of his influence over the regime in Kiev, paradoxi-cally shows the strength of th at premise: an

independent and democratic Ukraine, close to the West, is resisted by Russia precisely because the latter remains an unreformed and regionally ambitious power.

History has many times shown that while there may be temptations to appease dictators, and seek “peace” at the price of surrendering principle to tyrants and ag-gressors, whatever short-term benefits there seem to be they are quickly over-turned by events, and further instability and conflict. Poland, having been a victim of this political philosophy before World War II and in the Cold War, knows only too well that history is on her side. That is why the government of Donald Tusk, and espe-cially Foreign Minister Radoslaw Sikorski, have been so vigorous in arguing within the EU and NATO the need for a far-reach-ing response to Putin’s aggression.

Although the EU’s reaction has thus far been cautious, the consequence of the Crimea crisis is deep: the premise that Russia is led by a rational leader with whom “one can do business” has been shattered forever. As long as Putin remains in charge of Russia, the ability of the latter to exercise influence in Europe as before is dramatically diminished. This will have serious consequences. Just one example: in the field of application of en-ergy policy by the EU, the determination to

impose the Third Energy Package on Russian pipeline interests in Europe will increase significantly. Such an application to both Nordstream and South Stream gas pipelines will make those projects financially unvi-able, undermining Gazprom and weakening the Russian economy.

The other area of evolution will surely be in the conduct of EU foreign policy. The model of the External Action Service led by Baroness Ashton has been exposed by the crisis as woefully inadequate. At a time of new conflict of Europe, the EU needs a more activist foreign service, run by a politician with a personality. Some see current Polish Foreign Minister Radoslaw Sikorski as the ultimate winner, as later this year the EU seeks new leadership in Ashton’s post.

Most dramatic has been the new re-engagement by the United States in the Ukraine crisis. Although hampered by the failed principles of the “Russia Reset”, the Obama Administration has been more vigorous than many expected in throw-ing its support behind the new Ukrainian government and resisting the Putin narra-tive of the Majdan Revolution being a “fas-cist plot” led by Nazi hooligans. If the US overturns its policy to Central Europe by re-engaging in the region – and invigorat-ing such projects as Missile Defence – that will be a beneficial change in reasserting not just a stronger EU-US relationship, but also a revived Polish-US one as well.

The final benefit will surely come in Poland, as the domestic political scene unites around concern for the protection of the Polish national and security inter-est. After years of deep division, there is a chance that Government and Opposition will start to speak with one voice. It re-mains to be seen how the upcoming elec-tion cycle will impact that change, but there is hope that party political divisions will at last be tempered by a common un-derstanding of the national interest.

Once again, how the Ukraine crisis will play out in the weeks and months to come is unclear. But the impact on Poland’s po-sition in relation to the EU, the United States, and also the country’s internal po-litical dynamics, may be deep and funda-mental for years to come. n

Marek Matraszek is the Founding Partner of CEC Government Relations. He can be

emailed at mm@cecgr.com

Dusk for Ukraine, dawn for Poland?

Advisory www.bizpoland.pl

March 201410

By Preston Smith

Assuming you read last month’s column and now know the definition of “tunnel-ing” in the context of money laundering and Central Europe (and hopefully assum-ing that you have not had the bad luck to experience this type of theft first-hand), we’ll now move on to more modern incar-nations that could threaten your business.

True, old-fashioned, 1990s-style tunnel-ing does exist—this being the insertion of a person with a false identity into your firm with the sole goal of diverting bank transfers—but in the new millennium white-collar criminals have become much more advanced.

This is based primarily on the fact that old-fashioned tunneling is akin to a bank heist. Generally speaking, it is a one-shot, catastrophic event, the severity of which is likely to trigger at least a half-hearted po-lice investigation. Far more effective is to bleed a firm over a number of years while also co-opting members of the company so that an investigation would provoke em-barrassment, internal turbulence or worse, multiple convictions.

Thus the following methods are typi-cally used, and CEE Consulting investiga-tors literally see such setups on a monthly basis. Allow me to run through a few, which hopefully will not set alarm bells ringing—but then again, better late than never. 1) The multi-tasking vice president.

This is perhaps the most common ruse. A vice president or high-ranking manager sets up a number of mirror companies (often sole proprietorships), which are de facto created by his wife, brothers, cousins or anyone else in his family. These will be used for billing purposes even though the actual ser-vices performed will still be conducted based on the resources available at his company. If the vice president attained his current status through talented salesmanship, so much the better, as he can easily meet clients on his own, suggest different billing addresses and then throw his own personal projects into the mix. While some companies are more vulnerable to this than others (think manufacturing companies with sale-and-buy back arrangements), a typ-ical red flag is the “boutique marketing

firm” that literally nobody has ever heard of in the company but the vice president himself. Market research or consulting services are then booked and paid for and if the vice president has real independence, he simply signs off the money to himself. Such arrange-ments can last for years—with secre-taries, accountants, employees and even passive CFOs becoming unwillingly co-opted along the way. Eventually, if he goes down, so do a slew of key employ-ees. Not so surprisingly, when the vice president is eventually confronted and fired, he is also given a healthy golden handshake to simply keep his dirty secrets to himself.

2) The self-marketer. While this is partially covered above, the number of marketing scams we see is at times astounding. These come in the form of kickbacks to the head of marketing for targeted advertising (i.e. he buys an advertisement in a magazine or on television but is well rewarded off the books); the arrangement of entertainers at company events that just so happen to be working for him; the mystery marketing or consulting study bought through an associate that is paid for but which nobody can ever find - or even dreaded art-auction scam, which we will cover at a later date, as this is more often to sort out bribes for politicians.

3) The valuation scam. This scam hit its prime before the real estate crisis, but it is still sometimes used today, especially in countries with political turmoil but high-value locations (think Ukraine). Such a trick is relatively more compli-cated in that it involves the corruption of an approved appraiser who then pushes a valuation far too high in order gain a higher-than-deserved credit

agreement from a lender. Once the loan comes in, the money can be diverted during the developing of the land, the renovation period or even during fit-out stages of a property. In worst-case scenarios, the special purpose vehicle (SPV) actually developing the property must declare bankruptcy, and despite the ensuing pain the money is simply gone for good. While this type of tun-neling may seem unlikely in this day and age, it does happen, and even in the case of heavy hitters with good lawyers behind them, the embarrassment and potential risk to the reputation of a fund is often enough to get such inves-tigations dropped.

4) The IT team. There are so many IT scams out there that it would take a se-ries to describe them all, but the worst can be debilitating to the profits of a company. A typical, not-so-smart set up involves two-to-four IT personnel who simply alter products and sell them through their own private companies on the side. These scams are often easily uncovered, as larger companies are always on the lookout for stolen or reverse-programed applications, but just as often the temptation often is simply too much. Look for such scams in companies set up by an “idea-man” type of entrepreneur who really does not have a great deal of understanding about the nuts and bolts behind the IT solutions in his own company. This hap-pens more than you might think. As you have probably noted by now, none

of the above conform to the past, hard-core mafia tunneling jobs of old. In fact, such tunneling attempts often target banks or large private accounts, as there is still the chance of the big score. Yet the four exam-ples above still amount to lost profits, po-tential humiliation and legal nightmares for small and large entrepreneurs alike—and more frightening, ask any risk consultan-cy, white-collar crime specialist or detec-tive agency and they will tell you the same thing: They happen all the time. n

Preston Smith is the managing director of CEE Consulting Group, a regional risk

consultancy and licensed detective agency specializing in pre- and post-transaction due diligence, multi-jurisdictional asset trace in-

vestigations, FCPA checks and on-the-ground investigation and surveillance.

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Dom Development cuts divi-dends drastically to PLN 2.2 per shareListed real estate developer Dom Development will recommend paying out PLN 54.5 mln dividend this year or PLN 2.2 DPS, the company said in a market filing. The sum includes PLN 53.35 mln from 2013 profit and PLN 142k in retained profits from prior year periods. The recommend-ed total sum represents 99.9% of 2013 con-solidated net profit and is in line with the dividend policy released in April 2013, the company also said. Dom Development paid DPS of PLN 3.68 from 2012 profit. n

PHN says it will increase its debt ratiosListed real estate firm PHN will spend less than PLN 200 mln on its Domaniewska 37C project in 2014, CFO Wlodzimierz Stasiak told a news conference. - Outlays will be lower than PLN 200 mln, Stasiak said. - We want to conduct this investment resorting also to external financing at the level of 60-70%. The company generally will seek to increase its LTV ratio, the CFO suggested.

- Generally we want to systematically in-crease the level of external financing in our structure, so that it constitutes 30-40% of the whole portfolio, he said. n

Boryszew for strong increase in earnings in 2014The following are takeaways from the state-ment of listed industrials group Boryszew CEO Piotr Szeliga during an earnings con-ference: ON 2014 OUTLOOK: - Boryszew expects a significant increase in the group s earnings in 2014; ON STRATEGY: - Boryszew will target achieving a good debt and cash position under the new strategy to be published in Q2 rather than Q1 as ex-pected earlier; ON SEGMENTS: - Boryszew assumes that the automotive segment will reach 10% EBITDA margin in 2-3 years and become the key division of the group with revenues at some EUR 500 mln; - aluminum segment is likely facing a difficult year, but the outlook for the following several years is very good; - copper segment enjoys high sales growth rate, while lead segment is still deeply below expectations; ON REAL ESTATE PROJECT SALE: - the group

plans to sell its real estate project in Lucka street in Warsaw to avoid freezing PLN 300-350 mln for two years; ON CREDIT AGREEMENTS: - Boryszew has not violated the covenants of the credit agreements in terms of net debt-to-EBITDA ratio as mar-ket analysts feared. Taking into account, among others, that the group includes cash inflows from discontinued operations, the indicator measured some 3.5x rather than 4.2x as of end-2013; ON MEXICAN PLANT: - Boryszew will decide on the launch of a car parts plant in Mexico by June and the po-tential start would take place in 2015.

Echo Investment real estate nets PLN 1.7 mln in Q4 vs. PLN 2.6 mln profit expected

Listed developer Echo Investment fell just short of market expectations with PLN 1.7 mln attributable net profit in Q4 2013 versus expectations for a PLN 2.6 mln net gain, Q4 financial report showed. Property revaluation took PLN 32 mln from the P&L. Revenues of PLN 122.2 mln were down by 17% y/y and 6.8% below con-sensus. Of the revenues, 57% came from shopping centers, 20% from housing, 20% from the office and hospitality segment. n

Listed wholesaler Eurocash posted PLN 74.8 mln in net profit in Q4 2013, well be-low the PLN 105.8 mln profit expected, the company`s financial report showed. Revenues of PLN 4.23 bln were up by 0.5% y/y and were 4.8% above consensus. However, EBIT dropped 41.3% year on year to PLN 94.4 mln, a full 32.8% below the consensus call for an EBIT of PLN 140.5 mln. EBITDA of PLN 124.1 mln was down 36.2% year on year. Margins suffered y/y in two of the group s three client segments. EBIT for distributor Tradis is down nearly 70% year on year following a prior period loss of a key client. Margins in the segment are down to a mere 1.4% from 3.8% a year earlier. Management blamed the margin slide on internal factors tied to the cost of restructuring and integration of Tradis into the group. The independent segment, including cash & carry, saw margins de-cline to 1.0% from 2.4% a year prior as EBIT was slashed in half. Only the integrated cli-ents segment managed to defend its EBIT margin at 6.4%, vs. 6.5% in Q4 2012. The bottom line benefitted from lower finan-cial costs and lower tax burdens, manage-ment added. n

Equities News

Eurocash wholesaler posts PLN 74.8 mln Q4 net profit, far below expectations

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March 2014

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Cyfrowy Polsat media beats expectations on PLN 173.1 mln Q4Listed media group Cyfrowy Polsat, with TV broadcast and DTH satellite services in Poland, beat market expectations with a Q4 2013 attributable net profit of PLN 173.1 mln, the group s Q4 financial report showed. Rising net profit was put largely to higher FX gains on debt and lower financ-ing costs, but gains against the prior period were visible across the P&L, even exclud-ing acquisitions. Revenues were up 6.6% y/y, in part on consolidations, to beat the consensus. Adjusted for purchase of new television assets, revenues would have been up 3.5%, with gains in both retail DTH and television advertising revenues. Revenues on retail DTH ops grew 4.3% year on year. Rising ARPU - up 2% y/y for overall opera-tions - offset losses in client counts for the higher-shelf Family package. Management also tipped its hat to new revenues from internet television and increased telco rev-enues. The television segment boasted a 15.0% gain in ad revenue, mostly on con-solidations, and said an adjusted measure

would have been up 3.9%. EBITDA of PLN 275.4 mln was up 11% year on year reflecting profitability from cost cutting in the retail segment to offset rising costs in television. Ex-acquisitions, EBITDA of PLN 265.1 mln was up 7.3% y/y. Q4 production costs were up 17%, or 14% ex-consolidations. n

Orbis posts revenues in 2013 of PLN 683 million, down nearly 4% The company attributes the fall to increased revenue in 2012 due to the Euro 2012 foot-ball championships. In Q4 of 2013 the company recorded a 49.2 pct increase in its EBITDA (PLN 44 mln in 2012). High operat-ing profits in Q4 and cost cutting measures resulted in an EBITDA of PLN 199.1 mln for 2013, above the forecasts published by the company in September. In 2013 the compa-ny signed eight new franchise agreements resulting in the addition of 700 new rooms to its chains. Orbis will recommend a divi-dend payout from 2013 profit at least equal to the 2013 payout, deputy CEO Ireneusz Weglowski said. - We will be recommending a dividend payout this year no lower than

last year payout, Weglowski said. Orbis paid a PLN 64.5 mln dividend from 2012 profit, which translated into PLN 1.4 DPS. Also from 2011 profit Orbis paid a PLN 1.4 DPS. Also, Orbis Listed signed a franchise agree-ment for an 80-room hotel under construc-tion in the city of Grudziadz, Orbis said in a press statement. The hotel will be operating under the Ibis Styles brand. n

Stalprodukt steel sells 99% stake in Gradir Montenegro for PLN 153 mlnListed steel group Stalprodukt saw its unit ZGH Boleslaw sign a conditional deal to sell 99.35% stake in Gradir Montenegro lead and zinc for PLN 153 mln to Balkan Mining Group, Stalprodukt said in a mar-ket filing. The proceeds from the sale will be allocated above all to the realization of new investment projects by ZGH Boleslaw, the filing read. The parties will also sign a 5-year agreement for Stalprodukt to buy 15k tons of zinc concentrates from Balkan Mining Group worth PLN 160.1 mln, fol-lowing the finalization of the current transaction, the filing added. n

Listed real estate firm GTC wants to keep its net financial debt to assets ratio not ex-ceeding 70% until PLN 200 mln in bonds of a new issue, to be sold in March, ma-ture, the company said in a market filing. `The management board of the Company estimates that until the complete redemp-tion of the New Bonds the net financial debt to assets ratio will not exceed 70%, the filing reads. The company has not dis-closed when the new bonds will mature, but the issue number suggests 5Y bonds maturing in March 2019. Earlier the com-pany suggested it would prefer to keep LTV capped at 50%. The company admitted the debt may increase since the company plans to develop additional properties be-tween 2014 and 2016. The company plans to sell the PLN 200 mln bond issue in the first half of March, the company said, in line with the EUR 30-50 mln range sug-gested earlier. GTC faced PLN 841 mln in outstanding standalone debt at the end of 2013, including PLN 350 mln in short-term debt tied to bonds maturing in April 2014 and PLN 85 mln in other short-term debt, the company said. - In order to prolong the average maturity of the Company`s debt,

on 19 February 2014 the Company deliv-ered proposals to acquire bonds issued by the Issuer to certain, selected institutional investors who have submitted their bind-ing bookbuilding declarations, the compa-ny said. The company expects to close the sale in the first half of March. The company

has not disclosed when the new bonds will mature, but the issue number suggests 5Y bonds maturing in March 2019. GTC faces PLN 350 mln in short-term debt tied to bonds maturing in April 2014 and PLN 85 mln in other short-term debt, the company said of the debt levels at end-2013. n

Equities News

GTC developer back in the development game, with 200 million pln debt placement

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2014 March

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Energa power to take 51.7 mln hit on 2013 net profit Listed power group Energa will suffer some PLN 51.7 mln hit on its 2013 consolidated net profit due to non-cash one-offs - a reserve on missing CO2 emission allowances and an asset impairment on the Ostroleka pow-er plant, Energa said in a market filing late Tuesday. - Creating a reserve for CO2 allow-ances in the Generation Segment will impact (a) the EBITDA result by some negative PLN 35.7 mln and (b) the net profit of the Energa Group by some negative PLN 28.9 mln, the filing reads. - Creating an asset impairment at Energa Elektrownia Ostroleka unit will impact (a) the EBITDA by some negative PLN 28.2 mln and (b) the net result of the Energa Group by some negative PLN 22.8 mln. The reserve was created as Energa has not yet re-ceived free CO2 emission allowances for 2013 to which it is entitled, the fim explained. The asset impairment, in turn, is a result of an impairment test conducted as at November 30, the firm said. - The test demonstrated the need to conduct an asset impairment of PLN 151.6 mln, of which PLN 123.4 mln was booked in Q1 2013 and PLN 28.2 mln was booked in Q4., the filing reads. All the above figures are subject to change as the group s 2013 financial statement is currently being audited, Energa stressed. The group will pub-lish its FY2013 on March 10. Similar reserves pertinent to missing CO2 emission allowanc-es have already been made by Energa s peers: PGE, Tauron, & ZE PAK. n

Foreign investors hold 47% share in WSE equity trade in 2013Foreign investors saw their share in equity trade on the Warsaw Stock Exchange main market edged down to 47% in 2013 from 48% in 2012, WSE operator GPW said in its FY2013 results presentation. Polish in-stitutional investors increased their share in equity trade to 38% from 34% last year, while the share of individual investors fell to 15% last year from 18% in 2012, the pre-sentation showed. n

Central bank says real estate sector healthierPolish developers enjoy improvement of their situation as the number of unsold apartments is declining, construction costs are falling and new housing projects are becoming more profitable, NBP said in a report on the housing market in Q4 2013. DEVELOPERS: The condition of developers sector is improving thanks to a slowdown of housing price decline trend, lower con-struction costs, a decline in the number of unsold apartments and higher demand. - As the number of apartments awaiting buyers is gradually declining, developers financial costs of their maintenance are falling, and the above-mentioned factors should lower costs of finishing the already launched in-vestments as well as increase profitability of new investment projects. As a consequence developers are launching new investments.

NEW PROJECTS, PRICES OUTLOOK: If the number of newly launched housing projects continues to increase y/y as was the case in H2, in two years there will be more apart-ments on the market and price increases will be moderate. APARTMENTS STOCK: Stock of unsold apartments continued to decline in 2013 with the level of unsold flats heading towards equilibrium. PRICES IN Q4: Growing demand and declining oversupply of apartments on the primary market in the six biggest cities resulted in taming the declining price tendency on the primary market in these cities. It also trans-lated into stabilization of housing prices on the secondary market of these cities. n

IT firm Asseco South Eastern Europe expects to record simi-lar results in 2014 as in 2013IT firm Asseco South Eastern Europe, a unit of large-cap Asseco Poland, expects to re-cord similar results in 2014 as in 2013, CEO Piotr Jelenski said during a press conference. - Our goal is to maintain results from 2013, Jelenski said. - There are no greater chances for the macro situation in the region to boost our results in any way. The only chance for growth is entry into new markets and cross-selling. Also of note: Asseco SEE could pay EUR 3-4 mln dividend from 2013 profit, CEO Piotr Jelenski said. - We ll want to allocate all free cash resources to dividend, Jelenski said. - That will probably be between EUR 3 and 4 mln, likely closer to EUR 4 mln. n

The Warsaw Stock Exchange operator GPW posted a net profit of PLN 28.6 mln in Q4 2013, slightly above expectations for PLN 24.1 mln gain and up by 35% year on year, PAP calcu-lations against the group annual report and 9M figures showed. The Q4 net profit was boosted by the settlement of a technological tax break related to the UTP platform license, GPW said in comments to results. Total rev-enues met the consensus at PLN 70.8 mln in Q4, with PLN 51.5 mln generated on the fi-nancial market and PLN 18.8 mln on the com-modity market, PAP calculations showed. The operating profit measured PLN 26.4 mln, 7.4% above expectations and down 1.8% y/y. WSE alone recorded PLN 16.7 mln EBIT, commod-ity market TGE posted PLN 10.6 mln, while BondSpot - an unimpressive PLN 0.3 mln. Operating costs edged up by 13.6% y/y to PLN 45.1 mln, GPW said. n

Equities News

WSE-operator GPW posts PLN 28.6 mln. net profit in Q4 vs PLN 24.1 mln expected

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IT distributor ABC Data en-ters Romanian market, wants top 5 place by 2017Polish IT distributor ABC Data, has recently announced it has entered the Romanian mar-ket, where it plans to make it to the top 15 players within the first year of activity. The company hopes to enter in top five vendors by 2017. Between 2010 and 2013, ABC Data had a stake in local Scop Computers, which went in-solvent. ABC Data offers a portfolio of 36,000 products from over 200 international produc-ers, targeting customers among local compa-nies in all market segments, namely IT inte-grators, resellers, IT and consumer electronic stores, as well as store chains. It plans to build a team of 20 staff in Romania by mid-2014. - We intend to include local manufacturers in our offer as soon as possible, always being open to the prospect of new partnerships, said Alexandru Gheorghiu, Sales Manager ABC Data Romania. - The market in Romania has a huge growth potential and is extremely competitive, which is why we are aware that a modern distributor has to exceed traditional business models and to provide suppliers and partners with extensive support in logistics, promoting sales and developing complete IT solutions, said Norbert Biedrzycki, CEO and Chairman of the Board, ABC Data SA. On average, the company has a 30 percent share on the markets where it has been active for several years, namely Poland, the Czech Republic, Slovakia, Lithuania, Latvia, Estonia and Hungary. At the moment, ABC Data fo-cuses on developing projects in countries

with high potential, such as Romania and Germany. The InterLink platform, developed by the company, is available in all markets where the company is present. Over 90 per-cent of orders are currently generated on the InterLink platform, available for partners in Romania on ABCData.com.ro. In 2010, the company launched its own brand Colorovo, the product portfolio including tablets and mobile device accessories, office supplies and equipment, as well as computer accessories. ABC Data has been listed on the Warsaw Stock Exchange since 2010. For 2013, the group estimates a turnover of some EUR 1.2 billion. n

Netia forecasts PLN 1.735 bln revenueTelco Netia expects to post PLN 75 mln ad-justed EBIT, PLN 505 mln adjusted EBITDA and PLN 1.735 bln revenues in 2014, while spending PLN 200 mln on investments and recording PLN 305 mln in adjusted operat-ing free cash flow, the firm said in a market filing. The guidance presented does not take into account the impact of one-off operat-ing costs or investment outlays tied to the integration process, estimated at PLN 8 mln and PLN 14 mln respectively, Netia said. The firm withdraws its mid-term financial goals under review since the publication of Q3 2013 financial results, the filing also stated. The de-cision to release new mid-term guidance will be made based on the results of the next plan-ning round. Netia stands by its profit-sharing objective of PLN 0.42 per share from 2014

onwards, the firm said in its 2013 financial report. - Management maintains its stated policy objective of making distributions at the level of PLN 0.42 per share from 2014 on-wards, subject to no major M&A transactions taking place, the report read. - Financial lever-age may grow towards 1.0x Adjusted EBITDA over the medium-term as necessary to meet this distribution objective, the firm also said. Back in February 2013 Netia said it intended to recommend a roughly PLN 128 mln (PLN 0.35 per share) payout to shareholders through buyback in 2013 and some PLN 145 mln (ca. PLN 0.40 per share) to shareholders in the form of dividend, buy-back or capital redemp-tion as of 2014. n

Bioton biotech posts PLN 3.9 mln net loss in Q4 2013Listed biotech firm Bioton posted a Q4 2013 attributable net loss of PLN 3.9 mln, as compared to a PLN 15.1 mln loss in the prior-year period, the firm`s financial re-port out Friday post-session showed. Bioton recorded a gross operating profit of PLN 4.1 mln, up from PLN 1.9 mln in the year-prior period, the report showed. Group revenues in Q4 amounted to PLN 93.1 mln, up slightly from PLN 88.8 mln in Q4 2012. Also, Bioton signed a letter of intent on selling its 50% stake in medical equipment producer Copernicus to the firm`s other shareholders for PLN 25 mln, the firm said in a market fil-ing. The transaction conclusion, subject to a number of conditions, is expected by March 31, 2014. n

Mobile telecom P4, the Play network op-erator, recorded PLN 707 mln EBITDA in 2013, up from PLN 562 mln in 2012, with revenues growing 4% y/y to PLN 3.72 bln and the number of clients up to 10.7 mln, P4 representatives said dur-ing a press conference. In Q4 alone, EBITDA reached PLN 211 mln as it grew 4% q/q, while revenues reached PLN 979 mln, up by 4.5% q/q, officials said. The company expects further revenue growth in 2014 after deceleration last year caused by reduction of wholesale Mobile Termination Rates (MTR). The number of clients of the Play network in 2013 rose by 24% y/y to 10.7 mln, a 19% market share at end-year, the firm said. Post-paid clients accounted for 44.4% of the total number at end-2013 versus

44.6% at end-2012. P4 became a net payer of interconnect costs for the first time last year due to the introduction of symmetrical fees as of the beginning of

2013, the firm said. The firm incurred interconnect costs of PLN 133 mln last year versus a positive net balance of PLN 89 mln in 2012. n

Equities News

P4 mobile operator records PLN 707 mln EBITDA in 2013 on PLN 3.72 bln revenues

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2014 March

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PGNiG natgas plans drilling 10-11 wells in search of shale gas in 2014Listed natural gas group PGNiG plans to drill 10 to 11 wells in its shale gas explora-tion effort this year, PGNiG`s exploration works director Maciej Nowakowski said during a debate hosted by PAP. - PGNiG alone has 10 or possibly 11 wells planned for 2014, Nowakowski said. - We are con-centrating works in the Pomorze basin. If PGNiG alone can drill 10 wells, then all companies searching for shale gas in Poland should be able to meet the expect-ed goal of 40 wells, Nowakowski believes. - I think that all companies together are able to drill this number of wells, he said. Poland expects some 40 shale gas explora-tion drillings in 2014 and hopes the first commercial drilling to take place at the end of the year, Environment Minister Maciej Grabowski said. n

PGE power to take PLN 875 mln net profit hit in 2013 on additional reserve and asset impairmentListed power group PGE will suffer a negative impact of some PLN 875 mln on its 2013 net profit due to non-cash one-offs in the shape of a reserve for CO2 emission allowances and an asset impairment, the firm said in a market filing. The additional reserve was tied as PGE did not receive free CO2 emission rights it is entitled to by end-2013, the firm explained. The asset impairment, in turn, will be booked as PGE Group recognized the loss of value in property, plant and equipment in Pomorzany CHP, Zgierz CHP and Dolna Odra power plant, the filing read. WOOD&CO ANALYST

BRAM BURING: The news of PGE’s 2013 CO2 provision, following similar an-nouncements from Tauron (PLN 270 mln) and ZE PAK (PLN 122 mln), is not unexpected (and is already reflected in some brokers’ 4Q estimates), but fur-ther asset impairments at the ZEDO plants and the Zgierz CHP are, in our view, unexpected and are likely to put concerns about the dividends back in focus. Including provisions and impair-ments, we see 4Q net profit at PLN 211 mln and full-year net profit at PLN 3.94 bln, implying a dividend at the top of the payout range of PLN 1.05/share (a 5.7% yield) and, according to the Bloomberg consensus, the market was expecting a DPS of PLN 1.12/share (a 6.0% yield), or a payout of 53%; given that this is the last “decent” dividend expected be-fore the Opole costs start to bite (next year’s consensus DPS is PLN 0.8/share, or 30% lower), we recommend switching at these levels into CEZ where there is both a FCF argument for higher sustain-able payouts (e.g., capex peaking this year and should fall by 35% in 2015E), as well as a political one (the new FinMin is eager to bring down the budget deficit, whereas the government in Poland has already received its windfall from the conversion of pension assets). n

Lotos fuel expects 550k ton crude output in 2014, main-tains 1.2 mln ton annual goal for 2015-2016Listed fuel refiner Lotos wants to extract 550k tons of crude oil in 2014 and main-tains its goal of 1.2 mln ton annual pro-duction in years 2015-2016, CEO Pawel Olechnowicz told a news conference.

- This year we should achieve the level of 550k tons of crude, Olechnowicz said. Lotos also maintains its goal of achiev-ing 1.2 mln tons annually in 2015-2016, the CEO assured. - I`m sure we will meet that goal, he said. To achieve that goal and to get back all the money invested in the Yme deposit, Lotos will seek to purchase another project in Norway, the CEO added. Lotos concluded a deal to buy production assets on the Norwegian Continental Shelf from Centrica for USD 175.8 mln on December 30. The purchase will allow Lotos to take advantage of a tax shield linked to the investments Lotos made on the Yme field. In Lithuania, production is expected to remain stable at 90-100k tons, Olechnowicz also said. n

LPP fashion predicts 57-58% gross margin on sales in 2014Listed fashion retailer LPP expects to record a gross margin on sales at 57-58% and a single-digit like-for-like (LfL) sales growth y/y in 2014, deputy CEO Dariusz Pachla told a news conference. - I think that the gross margin on sales may amount to 57-58% this year, Pachla said. The group`s gross margin on sales rose to 58.5% in 2013 from 56.7% in 2012. In Q4 2013 alone it stood at 60.6%. LPP main-tains plans for a single-digit LfL sales growth, but sees repeating the nearly 8% growth recorded in 2013 as challeng-ing, the official also indicated. - We as-sume a several percent growth of LfL sales, Pachla said, adding that record-ing an almost 8% growth would be a big challenge. In 2013, the group recorded a 7.7% LfL sales growth, including a 7.6% growth in Q4 alone. n

Listed firm MCI said it bought 20% of 02 from Innova Capital, and analysts specu-late that this is a first step in 02 s listing on the Warsaw Stock Exchange.

Shares in MCI moved up 1/2% to 10.3 pln on Friday after the news. 02 bought WP.pl from Orange Telecom last week, in a move that further consolidates Poland`s portal market. The combined 02/WP is now the biggest portal in Poland. n

Equities News

MCI buys 20% of O2 portal from Innova Capital

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March 2014

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KGHM copper expects strong 2014Listed copper giant KGHM will surprise the market positively with a 2014 net profit guidance to beat the current market con-sensus, CEO Herbert Wirth told reporters referring to the PLN 2.26 bln consensus. - We will deliver a positive surprise, Wirth said. KGHM is yet to present its 2014 budget after the supervisory board requested addi-tional analyses of the firm financial plan before approving it, and will hold another sitting to get acquainted with the material at the end of March, KGHM press officer Sylwia Rozkosz told PAP mid-February. Analysts surveyed by PAP expect KGHM to guide for PLN 2.255 bln net profit, PLN 3.211 bln EBIT, PLN 4.144 bln EBITDA and PLN 16.821 bln revenues in 2014. n

Famur wins first deal in IndonesiaMining machinery maker Famur signed a PLN 31-40 mln deal on delivery of min-ing equipment to Indonesia s PT Pesona Khatulistiwa Nusantara, the company said in a market filing. The final value of the deal depends on detailed terms of the contract, to be presented by the client. The contract marks Famur s entry to the Indonesian market, which the company calls prospec-tive, the filing read. n

Polimex-Mostostal lawsuit claims 177 million pln in dam-ages from the stateListed builder Polimex-Mostostal and its consortium partners in A1 motorway stretch deal filed a lawsuit against state road authority GDDKiA seeking payment of PLN 177 mln in contractual fines for the contract, Polimex said in a market filing. Contractual fines attributable to Polimex amount to PLN 79 mln. The com-pany claims the contact was terminated by consortium members, due to failure on the part of GDDKiA to present payment guarantees. n

Polish power firms will invest PLN 30 bln to 2020 in new generation capacityPolish power firms will put PLN 30 bln to 2020 in new generation capacity Polish power firms will invest PLN 30 bln to 2020 in new generation capacity, Treasury Minister Wlodzimierz Karpinski said Saturday. - To 2020 these firms will invest PLN 30 billion, Karpinski said, naming Poland`s largest power utility PGE which just launched construction of a plant in Opole, as well as other firms with plans in Tychy, Stalowa Wola, Legnica, Wloclawek

and Turow. Bringing new capacity online will also require some PLN 10 bln in in-vestments to the grid, Karpinski added. Together with PLN 18 bln in planned gas system investments, Karpinski claims Poland is on track to have very modern generation capacity, very efficient and ef-fective transit and very secure connections to the power and gas networks of the EU. - It radically increases energy security and simultaneously makes power more avail-able and cheaper which will increase our economic competitiveness. n

Advertising market seen growing less than 1% in 2014 after 4.5% decline in 2013The advertisingmarket is expected to grow by 0.5-0.9% y/y in 2014 after a 4.5% annual decline in 2013 as the market is slowly exit-ing the period of slowdown, media house Starlink said in a statement. - Despite the signs of growth acceleration in the Polish economy the media market is exiting the slowdown period very slowly, therefore Starlink forecasts the annual growth rate of the advertising market in 2014 in 0.5% - 0.9% range, the statement reads. In 2013 the advertising budget declined by PLN 328.5 mln or 4.5% to an estimated net spending of PLN 6.995 bln, the report said. TV ad spending declined by 3.6% in 2013 as a whole, but the last quarter of 2013 record-ed a 0.3% annual increase, the first such in-crease in ten quarters, Starlink estimates. Thematic channels increased their ad rev-enues by 4.6% last year and their share in the TV ad market to 21.5% from 19.8% in 2012, the statement reads. Radio broad-casters recorded flat ad revenues y/y in 2013, while internet was the only medium which recorded an annual increase, of 7.5%, in revenues, Starlink said. In-stream inter-net advertising was the strongest internet ad segment (42.6% annual growth) along with internet advertising for mobile devic-es, the statement showed. The 2013 decline in overall ad spending was influenced by a 20% annual cut in advertising budgets by telecom companies, Starlink also noted. n

JSW CEO on planned acquisi-tion and financingsFollowing are highlights from coal miner JSW CEO Jaroslaw Zagorowski inter-view for daily Parkiet. ACQUISITION OF KNOROW-SZCZYGLOWICE MINE - We are working with advisor (PwC) that we chose alongside with Kompania Weglowa management. It is aimed at guiding us towards the optimal price of the trans-action. Afterwards, negotiations will be held with KW management over the final

price. - We assumed that we should make it (the decision on the acquisition) by mid-2014. We have to make sure it will be ben-eficial to JSW. . Based on strategic plans, we are convinced about sensibility of the transaction. I am convinced to [make] the transaction but I have to have economic justification for it. - We do not know the valuation yet. It has to be satisfactory to both parties. It has to be remembered that optimization of the output structure and modernization of the mine in order to in-crease coking coal output will be costly. In total, it will be several hundred million PLN within several years. We will take it into consideration during price talks with Kompania Weglowa. - The acquisition will be partly financed from own means and partly via debt in order to have a safety cushion in the form of cash. We do not know yet what we will put greater pres-sure on. DEBT - We are running talks with the market on financial support in order to be ready not only for the acquisition of Knurow-Szczyglowice mine but also for financing growth-oriented investments. - The amount will depend on the price we will pay for Knurow-Szczyglowice. Therefore talks on the financing are gen-eral. We do not assume a share issue. We are not indebted. We have good balance sheet and we may incur debt. However, we are not thinking of eurobonds. The amount we want to garner is not so high to start a costly eurobond issue. OTHER ACQUISITIONS - Our strategic plan as-sumes continuous increase of resources, but currently we are focusing on organic growth. If opportunities appear on the market, we will analyze them, but not at any price. COAL PRICES - Looking at eco-nomic situation in Poland and Europe, the nearest future may bring slow coking coal prices increase and we should gain better prices on the market than the benchmark would suggest. I have an impression that we are past the worse, but a return to the levels of USD 200 per ton within a year is impossible. OUTPUT We produces 13.6 mln tons of coal in 2013, by 2015 output should rise to 14 mln. If we launch the sixth day of work after 2015, the output will increase by 10% and we will reach 15.5 mln tons. Adding the acquisition we could reach even 19 mln tons in about 2018. STOCK PILES - Some 800,000 tons of coal is in stock piles currently versus some 1.5 mln last year, but their structure changed and now steam coal makes up a majority of it. At the end of the year, the total size of inventories should be close to the cur-rent level or slightly lower. Steam coal will continue to prevail. Source: GPW n

Equities News

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2014 March

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Polish renewable energy company AMB Energia has launched the first phase of a project designed to be the country’s largest solar park.

The photovoltaic farm in Lipsk was fit-ted with an installed PV capacity of 0.3MW, and it is part of the company’s Podlasie Solar Park. The firm says its investment will consist of six PV farms with a total so-lar energy capacity of 7MW.

AMB Energia says the solar park will have a total space of some 140,000 square metres, making it what the company said is the larg-est investment in photovoltaics in Poland. The farm will provide the solar energy to lo-cal energy utility PGE Dystrybucja.

The Lipsk farm was fitted with PV pan-els supplied by Renesola and inverters ac-quired from Refusol, a subsidiary of US-based Advanced Energy. It was fitted with a 15 kV collection system.

In addition to the facility in Lipsk, which consists of a total of 1120 PV panels, the remaining five PV farms will be located in Jedwabne, Kolno (two farms), Lękowo and Zagroby Zakrzewo. The five munici-palities are located in the country’s eastern Podlaskie region.

Construction began in mid-2013. Under the plan, the opening of the facility in Lipsk is to be followed by the launch of three

other PV farms. “In the first half of 2014, we are planning to complete a further three investments of the Podlasie Solar Park and increase the on-grid installed PV capacity in Poland by about 200%,” AMB Energia said.

Set up in 2010 and headquartered in Warsaw, AMB Energia says its fields of ac-tivity include solar and wind energy proj-ects. Its investment portfolio includes re-newable energy projects with an aggregate capacity of more than 100MW, according to data released by the Polish company. The company says it develops PV projects in two models, build-own-operate (BOO) and build-own-transfer (BOT).

According to data released by the state-run Office of Energy Regulation (URE), by the end of 2013, Poland’s photovoltaic farms had a total installed and connected capacity of some 1.9MW, an increase from less than 1.3MW a year earlier. This means that photovoltaics were the country’s fourth largest renewable energy source, preceded by wind, biomass and hydro en-ergy, as shown by figures from the URE.

The highest number of photovoltaic in-vestments is currently located in Poland’s northern Warminsko-Mazurskie and Kujawsko-Pomorskie region, and also in the region of Lubelskie, in the country’s south-east, the IEO said in a market report. n

Stora Enso plans to invest €28 million in modernising and developing its Murow saw-mill to increase its capacity and improve its competitiveness. Stora Enso is rethinking its geographical mix as part of its transforma-tion into a renewable materials company. The investment in Murow sawmill will de-velop Stora Enso’s wood product offering in the growing Central and Eastern European markets. Stora Enso will also utilise the plat-form in Poland to support growth in selected overseas markets. “Stora Enso already has a well-established position in wood markets

and is seen as a reliable partner. This invest-ment in a strong growth market will enable us to serve existing and new customers even better in the future,” says Karl-Henrik Sundström, Executive Vice President, Stora Enso Printing and Living. The investment in Murow sawmill will increase Stora Enso’s consumption of Polish saw logs. The pro-duction capacity of the sawmill will rise to 140,000 m³/shift/year. Over the next five years, Stora Enso plans to increase the saw-mill’s output gradually to 400,000 m³ per year. n

FDI News

Sweden trade mission backed by Invest in PomeraniaThe Pomerianian Development Agency has announced a competition for small and medium-sized ICT firms from the region. The winners will take part in a trade mission to Sweden on 1- 4 April 2014. The mission is part of the “Invest in Pomerania” initiative to boost trade with Nordic countries and Germany, particularly in the ICT sec-tor, specialised sciences, technology parks and R&D centres.

Targban takes over Del Monte’s banana ripening facilityTargban has agreed to acquire the ba-nana ripening facility from Del Monte Poland, a subsidiary of Fresh Del Monte Produce Inc., a global manufacturer and distributor of fresh fruits and veg-etables. The facility will let Targban increase the operational capabilities of one of its flagship products - bananas. The acquisition will also help the com-pany to strengthen the position of a leading supplier of fresh fruits and veg-etables from around the world (South America, Africa, US, New Zealand) in Central Europe.

Business Mission to TurkeyMinistry of Economy, Polish Chamber of Commerce and PAIiIZ in coopera-tion with the Polish-Turkish Chamber of Commerce, Deloitte and Dentons invite Polish companies to participate in the Polish-Turkish Business Forum in Istanbul. The event will take place on 6 March. The Business Forum in Istanbul is one of the highlights of the Polish president Bronislaw Komorowski’s official visit to Turkey that takes place on 5-6 March.

South Africa – Poland Economic ForumMinistry of Economy, PAIiIZ and Trade & Investment South Africa invite you to participate in the Poland - South Africa Economic Forum. The meeting will be held on 14 March at 2 pm, in Hyatt Hotel in Warsaw. Poland - South Africa Economic Forum coincides with the official visit of the vice-president of South Africa to Poland, Mr. Kgalema Motlanthe. After the official part of the meeting, B2B talks for Polish and South African companies will be arranged. The application is available at http://www.paiz.gov.pl/ Polska-RPA by 12 March.

Poland’s Largest Solar Park

Stora Enso plans to invest Euro 28 million in Murow sawmill

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ArcelorMittal’s Dąbrowa Górnicza long rail installation in Poland – one of three in the world capable of producing 120m rails for the railway industry – was officially opened on 24 February by Poland’s deputy prime minister, Janusz Piechociński.

The opening of the new installation is timely as ArcelorMittal Europe has an-nounced its selection by Deutsche Bahn to supply 129kt of rails to the German railway company in 2014, together with ArcelorMittal’s Gijón site in Spain.

Both parties also agreed an option to de-liver a further 129,000 tonnes in 2015.

Manfred Van Vlierberghe, CEO of ArcelorMittal Poland, said that the pro-duction of long rails is a project of signifi-cant strategic importance for the company as many companies are planning major investment in rail infrastructure. “We are pleased that the opening of the installation

has taken place just days before the tenth anniversary of our presence in the Polish market. In the past decade, ArcelorMittal has invested more than US$1.6bn in the modernisation of its plants in Poland,” he said.

Augustine Kochuparampil, CEO for long products at ArcelorMittal Europe, said the company was very pleased to be working with Deutsche Bahn having just completed such a major investment in rail production facilities in Poland (enabling the company to produce 120m rails). The rails will sup-port Deutsche Bahn’s network renewal and expansion programmes.

Dr. Bernd Striegel, head of procurement and sites at DB Netz AG said: “Deutsche Bahn invests extensively in its railway net-work every year. In 2014, we aim to renew more than 3,000km of rails, 2,350 track switches, more than two million railway sleepers and about 4Mt of gravel.” n

FDI News

New jobs in Euro-Park Mielec Euro-Park Mielec has issue its third new permit this year. It was received by foil producer, Effect Plus. The investor will purchase comprehen-sively equipped production lines to manufacture innovative stretch foil. The total value of investment reaches PLN 35 million.

Cities and Regions Rankings show Poland top of charts Wroclaw in 2nd place, Katowice in 3rd and Poznan in 7th. In the FDI Strategy in Eastern Europe cat-egory, more than half of the Top 10 cities are in Poland: Katowice (1), Wroclaw (2), Poznan (3), Lodz (5), Lublin (8) and Krakow (10). In addi-tion, Katowice, Wroclaw and Poznan were listed among the FDI’s best cities in the whole of Europe (re-spectively 2nd, 7th and 10th posi-tion). Among the Top 10 major cit-ies in Europe in terms of business friendliness, Warsaw took 6th place in the list of all the major cities of the continent. Wroclaw obtained the same position in the large cit-ies category. Wroclaw and Katowice were also listed in the general rank-ing, presenting the most attractive large cities in Europe (8th and 9th place respectively). In the Top 10 re-gions of Eastern Europe, Poland is represented by: Malopolska (5th), Slask (6th), Wielkopolska (8th) and Mazowsze (10th).

New Investments in Zator Economic Zone Two companies Plastmot and Suneko will invest in ZEAZ. Together, both investors plan to spend nearly PLN 10m. Plastmot specialises in man-ufacturing of plastic components for automotive, horticulture, elec-tronics and household sectors that are exported to Germany, France, Spain, China, US and Mexico.

Components made by Plastmot for the automotive sector will be used by such brands as BMW, Mercedes-Benz, Fiat, Peugeot, Porsche, Renault and Rolls-Royce. The investor intends to create eight new jobs. Suneko produces inter-mediate metal parts for automotive manufacturers. The business will create 10 new jobs.

ArcelorMittal opens Polish rail production facility

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2014 March

www.bizpoland.pl FDI News

“The joy of pizza is that bread, sauce and cheese works fundamentally everywhere.” Domino’s Pizza CEO J Patrick Doyle has a simple explanation for his company’s success.

There are pizza places in many towns around the world, but not many have had as much success as Domino’s Pizza world-wide. And Domino’s success isn’t just about bread and cheese. Domino’s sold 61 million pizzas in Britain last year, because of its franchise business model.

Essentially, Domino’s uses other peo-ple’s capital to grow its business. In return for using the brand, the franchisee pays a royalty to Domino’s on his sales. When he starts up, he invests his own capital in opening a store. And on a daily basis he also buys his raw materials, pizza boxes and the rest from Domino’s. In return, he has the support of the brand behind him.

It’s a good arrangement. Domino’s gets royalties from franchisees, and in ex-change, it maintains a strong brand. As the store system grows, so the advertising pot gets bigger and there is a virtuous circle.

The franchise model has worked here in the UK, so why not in Poland? DP Poland listed on AIM in London in 2010 as the owner of the rights to Domino’s in Poland. It has a great product and the business model has been successful before. Can it repeat the trick?

Royalties in, advertising spending outDomino’s is one of those rare companies that’s achieved strong growth, while at the same time throwing off cash, in the form of dividends and share buybacks. The se-cret ingredient is the franchise model.

Domino’s owns very few of its stores, the vast majority are run by franchisees. But the company doesn’t simply sit back and watch the franchise royalties roll in. It has to hold up its end of the bargain. The big cost is the advertising and marketing sup-port that Dominos provides centrally.

In the UK, this has included expensive sponsorship of The Simpsons on TV to raise general brand awareness in addition to more focused support such as develop-ing smartphone apps for ordering.

To work, this plan needs scaleIt’s easy to see the appeal of the Polish market after Domino’s great success in the UK. The founders of DPP also have experi-ence in developing consumer food outlets in Poland. They rolled out the Aim-listed Coffeeheaven chain in Poland, which was ultimately bought out by Costa Coffee.

Unfortunately, it hasn’t worked out as hoped. The shares rose to over 100p in the first months after the initial public offering (IPO), but after further fund raisings, they currently trade around 15p. What’s gone wrong?

There’s a minimum efficient scale needed before you get the accelerating profits and cash generation that Domino’s UK has en-joyed. This takes time and effort to achieve – bear in mind the UK business was trading for over a dozen years before it floated.

Once you do get the system beyond a certain size, you cover central costs and are able to spend increasing amounts on advertising the brand. This makes you an attractive proposition to potential franchi-sees looking to start a business.

DPP was a start-up with overly ambi-tious targets. Selling Domino’s pizzas is also harder in an economy where the brand

isn’t well-known, and where people have less discretionary spending than the UK and less of a convenience food habit.

This can work – but it needs timeThe stores’ original break-even target of six months has been adjusted to 18 months. Store maturity is now seen as tak-ing three years. Even then, profits will only be about half the level of a good UK outlet. The store format has been improved and the first franchised store has now opened.

It looks like the emphasis will be on prov-ing this format over the next year or so be-fore expanding the chain. The board has been significantly strengthened with Chris Moore coming on as a non-exec. He was CEO of Domino’s UK, so his experience should be invaluable. He’s also been joined by Gerry Ford, chairman of the Caffè Nero chain.

The bottom line is that it’s going to take time. Early investors no doubt looked greed-ily at the UK profits and didn’t think hard enough about the scale of the challenges. The UK business itself had plenty of grow-ing pains before it became a cash machine. So DPP is one to keep on the watch list. But it’s also one that needs some patience. n

Domino’s targets pizza-starved Poles

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The Polish Chamber of Commerce held an Economic Forum in early February as a part of the 60th anniversary celebrations of Polish-Indian relationships. During the meeting, representatives of Polish and Indian governments discussed issues re-lated to mutual economic and diplomatic cooperation. It was also an opportunity for bilateral talks between business lead-ers from both countries. Under-secretary of state in the Ministry of Foreign Affairs, Katarzyna Kacperczyk, opened the discus-sion, underlining the great potential of the two countries. However, she argued, this capacity is still not fully utilised. She pointed out that India is seen in Poland as

an important economic partner, especially in terms of the R&D sector.

Secretary of state in the Ministry of Economics, Jerzy Pietrewicz talked about the growing interest of Poland among re-nowned Indian companies, mainly from the private sector. “Indian firms locate busi-ness service centres in Poland. In addition, companies representing IT, new technolo-gies and packaging industries have already started doing business here”, he said. He also added that also Polish companies are increasingly interested in cooperation with the Indian market. “We have much to offer to Indian partners in such areas as defence, pharma or energy sectors. We also count on the cooperation in the aerospace sec-tor”, said the deputy minister. Aleksander Libera, advisor to the board for Polish in-vestments abroad from PAIiIZ, listed the sectors in which Poland is able to invite Indian investments. Among them there are: BPO, IT, R&D and chemical indus-tries. Mr Libera stressed the strategic role of Indian business counterpart. To prove it, he reminded the audience of the number of completed investment projects from India between 2011-2013. According to PAIiIZ, the total value of the projects reached PLN 72.3m and the total number of expected new jobs is 1,245. Four new investments in Legnica SEZ

Four companies: Viessmann Technika Grzewcza, Uzin, C+P Meble and S&L, have received permits to conduct business in Legnica SEZ. Between them, the com-panies will invest nearly PLN 13 million. Viessmann Technika Grzewcza is planning to launch production of cables for con-densing wall-mounted boilers. The com-pany will increase its workforce by 10 new employees. German company Uzin will in-vest PLN 1m to develop the product range and increase the volume of sales. The new investment of C+P Meble has been esti-mated at PLN 8m. The company plans to expand the production hall and increase employment to 123 workers. The Legnica plant produces sheet steel furniture to be delivered to the Tropical Island aqua park in Germany as well as to foreign facto-ries. S&L will spend PLN 4m and employ five new people to offer supply services, including road freight transport, selected land support services, storage, as well as financial audit and accounting services. n

Armenian Minister of Economy visits PolandRepresentatives of the Armenian Ministry of Economy visited Poland in mid-February, under the European Commission Technical Assistance and Information Exchange Programme (TAIEX). The main aim of the meeting lead by PAIiIZ was to acquaint Armenian partners with the Polish system of Special Economic Zones as well as to present local in-struments of support for invest-ments. They discussed the possi-bilities of cooperation between both institutions. Armenian delegates also visited Krakow, where they met representatives of regional techno-parks: Krakow Technology Park, LifeScience cluster and Jagiellonian Centre of Innovation.

Polish Aviation companies wel-come to AngolaAngola – one of the fastest develop-ing African countries - encourages Polish companies to take part in its aviation investment projects. By 2016, the Angolan government plans to spend over 1,6m on that purpose. Currently, Angola is carrying a huge project of civil aviation infrastruc-ture development. Ultimately, 30 airports, including 16 completely new ones, will operate throughout the country. The construction of the international airport in Luanda - the capital of Angola - is expected to be finished by 2016. It will be the most modern airport in this part of Africa that will provide services for 15 million passengers every year. Additionally, the government has begun the process of moderniza-tion of the 4 already existing inter-national airports: Aeroporto 4 de Fevereiro in Luanda, Nova Lisboa in Huambo, Aerpoporto da Catumbela in Benguela and Welwitschia Miriabilis in Namibe. The project is managed by state-owned corpo-ration ENANA. Implementation of the new investments requires the development of new express roads in the country. Over the next three years, Angola is going to build about 10,000 km of such roads. According to Domingos Culolo, Angola’s am-bassador to Poland, this is an ad-ditional opportunity for Polish companies.

Indian companies looking at Poland

Katarzyna Kacperczyk podsekretarzem stanu w MSZ

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2014 March

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Azerbaijan and Poland discussed prospects for development of bilateral relations in the future. Azerbaijan’s Deputy Foreign Minister Khalaf Khalafov and Deputy Economy and Industry Minister Niyazi Safarov paid a visit to Poland on February 12-14.

The Azerbaijani officials, whose visit was aimed at participation in the intergovern-mental political consultations, met with Poland’s Deputy Prime Minister Janusz Piechociński, Economy Minister Katarzyna Pełczyńska-Nałęcz, Deputy Economy Minister Andrzej Dycha, and other officials.

The two sides discussed regional devel-opments, cooperation in political, econom-ic and humanitarian spheres, as well as prospects for the development of bilateral relations. Preparations for the next meet-ing of the joint intergovernmental com-mission in Baku were also discussed.

Addressing the event, Janusz Piechociński said Poland sees broad prospects for econom-ic cooperation with Azerbaijan. “Dynamic development of Azerbaijan is a good indica-tor for the development of a favorable trade and investment cooperation between the two countries,” he said.

Niyazi Safarov, in turn, said Azerbaijan is planning to diversify its economy and to

develop the non-oil sector of the economy. “Thus, we urge the Polish entrepreneurs to get acquainted with our suggestions in the chemical industry, agriculture and the construction industry,” he added.

Polish Embassy and the Economy Ministry organized a round table, which brought to-gether representatives of more than 40 com-panies from various industries. The meeting held a presentation on Azerbaijan prepared by Azerbaijan Export and Investment Promotion Foundation (AZPROMO). The meeting was also attended by Azerbaijan’s Extraordinary and Plenipotentiary Ambassador to Poland Hasan Hasanov.

Detailed proposals on trade and invest-ment will be discussed in the next meeting of the Polish-Azerbaijani intergovernmen-tal commission on economic cooperation scheduled for April 2014. Poland reconized the independence of Azerbaijan in December 1991. Diplomatic relations between the two countries were established in February 1992.

The Azerbaijani State Statistics Committee has said the trade turnover be-tween Azerbaijan and Poland amounted to $24 million in the first six months of 2013. Azerbaijan mainly exports agricultural and chemical products to Poland.

FDI News

JWT acquires Lemon Sky WPP announced that its wholly owned operating company JWT, the global marketing communications agency, has agreed to acquire Lemon Sky, a leading creative digital marketing company in Poland. Founded in 2000 and employ-ing around 70 people in Warsaw and Wroclaw, the agency specialises in pro-ducing a broad range of digital adver-tising and campaign services. Clients include Nestle, Orange, Tesco and Leroy Merlin. Lemon Sky’s unaudited rev-enues for the year ended December 31, 2013 were EUR 2.7 million. Following the deal, Lemon Sky will join JWT Warsaw to create one integrated communica-tions agency for Poland. This invest-ment continues WPP’s strategy of devel-oping its services in important markets and sectors and strengthening its capa-bilities in digital media. In Poland, the group (including associates) generates revenues of around US$150 million and employs over 1,000 people. Across the Central and Eastern European markets collectively, WPP companies generate revenues of around US$700 million and employ over 6,000 people. n

Azerbaijanis in Poland

FDI Poland Investor Awards16 October 2014, Hotel Intercontinental, Warsaw

A Black-tie Awards Gala and Forum recognizing top foreign direct investors in Poland.

www.FDIPolandAwards.pl

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March 2014

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New investments in Krakow ZoneKrakow SEZ has issued three new permits to conduct business. They were received by Can-Pack Food and Industrial Packaging, Can-Pack Metal Closures and SGL Lindner. Together, all companies plan to invest PLN 112.5m and create 132 new jobs. Can-Pack Food, Industrial Packaging as well as Can-Pack Metal Closures operate under Can-Pack Group, the company producing metal packaging from over 20 years. Can-Pack Metal Closures plans to implement the production of crown crocks and the easy-open ends called “CP-CAP “. Moreover, the company will invest in the process of automating, receiving, packaging and stor-age of finished products. SGL Lindner is a joint venture company of Lindner and SGL Carbon. Under the new projects, both companies have been cooperated with the Academy of Mining and Metallurgy in Krakow. SGL Lindner plans to build a new manufacturing plant in Nowy Sacz where production of expanded graphite for cooling and heating systems will be implemented. The value of investment has been estimated at the level of PLN 40m. Investor plans to hire at least 70 new em-ployers. Starachowice SEZ expands

Starachowice SEZ is growing by 31 hect-ares. On 25 February, the government

issued new regulations which changes the SEZ borders. Due to the increase of SSEZ and acquiring new investments, over 1,000 new jobs may be created. The expected val-ue of the incoming investments has been estimated at the level of PLN 233 million. New plots incorporated to Starachowice SEZ include areas of Konskie and Pulawy and municipalities of Kielce and Polaniec. The incoming investments in the expanded zone not only should help to create new jobs in the SEZ area, but also will increase employment in zone’s surroundings. The governmental regulation has been imple-mented to increase the capabilities of SEZ in terms of investment development as well as to strengthen the competitiveness of Polish economy and the employment policy.

New investors in Lodz SEZTwelve companies have received permits to do business in the Lodz SEZ. Together, they plan to invest over PLN 184 mil-lion and create 241 new jobs. Permits has been received by Elfa Pharm, BSH Sprzet Gospodarstwa Domowego, Wirthwein Polska, Quick-Mix, Poprawa Producent Opakowa, Tekturowych, Thermica, Sponcel, Weidenhammer Polska, VPK Packaging, Star Fitness, Huta Szkla Anewal, and Hapam Poland.

For some companies this is the next permit in Lodz SEZ. In a newly purchased plant in Chociw, Elfa Pharm will pro-duce cosmetics and sanitary- hygienics. Cost of the investment is PLN 8 million. The company will employ at least 30 new employees. Thermica will spend of PLN 2.1m to build a plant to produce styro-foam boards and chemistry for real estate market. The company will hire at least 15 new employees. Sponcel will run a plant producing cellulose sponge for house-hold products making. In Kutno subzone, Weidenhammer Polska will build a plant producing pasteboard packaging. The company will spend at least PLN 25m and employ more than 31 new employees. Cardboard packaging is also the specialty of VPK Packaging. The company will in-vest PLN 58.8m and employ 30 new mem-bers of staff. Star Fitness, specialising in fitness facilities production, will invest at least PLN 8m in this are of production and hire over 20 employees. Huta Szkla Anewal will produce jars, candles and decorative glassware. Hapam Poland, a manufacturer of high voltage disconnec-tions, intends to expand its factory as well as purchase new technological lines and equipment. For that purpose, the in-vestor will pay at least PLN 5m. n

FDI News

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CEE Shared Services and OutsourcingAwards Ga�

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2014 March

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KrakówKraków to host global travel conference Meeting Professionals International will hold its annual conference in Krakow on 1-3 February 2015, at the ICE Congress Centre, which is currently being built and slated to open in October 2014.

“We look forward to holding EMEC in Krakow for the first time next year,” said Pierre Fernandez, senior director of European Operations at MPI. “The historic city is centrally located within Europe and will be an excellent location for our annual European conference, which offers premier industry education and features distinguished presenters from the region.”

MPI’s partners for EMEC 2015 include the Poland Convention Bureau Polish Tourist Organization, the Ministry of Sport and Tourism of the Republic of Poland, ICE Krakow Congress Centre, Krakow Convention Bureau, and MPI Poland Club.

Around 300 event professionals were in Istanbul in mid-February for the EMEC 2014 event.

Kraków Central Station goes undergroundPoland’s Deputy Prime Minister, Elżbieta Bieńkowska, has opened the newly-refurbished Kraków central sta-tion – Poland’s first underground rail-way interchange. The ceremony on February 14 marked the end of a 130 million zł project to relocate the exist-ing station’s concourse underground,

connecting it with the city’s tram and bus networks.

Kraków central station is now spread across four floors, with the ticket hall and tram platforms now located beneath the main line platforms. The project has been made possible through EU funding and is one of 96 station redevelopment and mod-ernisation projects delivered by operator PKP since 2010. n

ŁódźSlovenia’s Adria Airway is heading to ŁódźSlovenia’s Adria Airways will launch flights from Munich to Łódź, as the Slovenian carrier continues to expand its business outside of its country’s borders. Flights to Łódź will operate up to six times per week with the service to be inaugurated on March 30. Tickets will be put on sale in ear-ly March. It will be the first time Adria will operate scheduled flights to Łódź, its sec-ond destination in Poland as the national carrier will launch services from Ljubljana to Warsaw on April 1.

Adria’s latest choice of destination con-tinues to fuel discussion it will be feeding the network of its Star Alliance partner Lufthansa yet again. There are currently no flights between Łódź and Germany. In addition to Ryanair operating flights to three destinations out of the city, there are no other airlines flying into Łódź. On April 2 Adria will launch services from Tirana to Frankfurt, providing transit passen-gers to Lufthansa. The flights complement Adria’s existing services out of Pristina to both Frankfurt and Munich, as well as Ljubljana.

Last year Adria announced it would open a base at Verona Villafranca Airport in Italy. The Slovenian carrier will initially feed the bases of airlines owned by the Lufthansa Group with flights to Vienna (Austrian), Zurich (Swiss International Air Lines) and Brussels (Brussels Airlines). The airline has been awarded rights to operate routes from Verona which have been previously dropped by Italian airline Air Dolomiti, which is owned by Lufthansa. Adria also discussed the possibility of opening a base in Klagenfurt in Austria this summer. Łódź is the latest destination in the Slovenian car-rier’s major network expansion this summer which will see it launch flights from Ljubljana to Prague, Warsaw and Kiev in addition to the Tirana - Frankfurt service.

Łódź railway station re-worked by robotPolish concrete specialist Konkret is us-ing two Brokk demolition robots on what is currently the single largest infrastruc-ture project in Poland, the construction of a new transport hub and the redevelop-ment of Lodz city centre. The two robots are working on the redevelopment of Lodz Fabryczna railway station where the larger Brokk 260 is being used to remove concrete foundations and diaphragm wall, while the

smaller 160, equipped with a bucket, is be-ing used to remove rubble. The project will see the complete redevelopment of more than 90 hectares of Lodz city centre at a cost of €500 million.

Mr Konrad Klimkowski, president of Konkret, said of use of the Brokks: “In this case the timesaving, efficient Brokk method is much appreciated. Overall we also value the safety aspect. It is quite a challenge to convince the Polish customers that it is so much safer to use a demolition robot. But the attitude is slowly but surely changing. At Konkret we long ago realised that hand-held equipment is very inefficient and costly.”

Today the Warsaw-based Konkret em-ploys some 50 people working with differ-ent demolition techniques. It was estab-lished in 2006 and today operates a Brokk fleet of breakers, drum cutters and con-crete crushers. n

City News

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www.bizpoland.plCity News

SzczecinHuge investments in Szczecin tramsTwo contractors are bidding for the busi-ness to modernize the tramways on streets in Szczecin. A total of 296 tramlines will be reconstructed.

Bidders include: 1. Consortium Track - Kar - SSON Warsaw

- Z.U.E. SA Cracow - Strabag Pruszków that offered a bid of 115 million pln.

2. Energopol Szczecin, which submitted an offer of 80 million pln. Currently, the city is evaluating the bids,

and according to the specifications, the contractor will have 9 months to complete all work once the contract is signed.

Reconstruction of the railway tracks between the right and the left banks of Szczecin will significantly improve the functioning of public transport between the two parts of the city and together with the currently constructed route Szczecin Fast Tram will be attractive both in terms of travel time and comfort. The proj-ect will be implemented under the proj-ect “Construction and reconstruction of tracks in Szczecin” financed under the EU’s Operational Programme Infrastructure and Environment. The value of the project amounts to 273 million pln, of which the EU grant is nearly 50% - at 131 million pln.

North Sea - Baltic Corridor Study conducted for the European CommissionThe Proximare consortium led by Pan-Baltic Law Firm TRINITI (Estonia) to-gether with Malla Paajanen Consulting (Finland), Norton Rose Fulbright LLP (UK), IPG Infrastruktur- und Projektentwicklungsgesellschaft mbH (Germany) and Goudappel Coffeng BV (Netherlands) has been commissioned by the Directorate-General for Mobility and Transport of the European Commission (DG-MOVE) with carrying out a study on the North Sea-Baltic Core Network Corridor.

After the framework for the new Trans-European Transport Network (TEN-T) came into force on 1st January, 2014, the European Commission signed contracts with several external consultants to pro-vide analyses and technical assistance to draft work plans for the TEN-T Core Network Corridors.

Based on an increased budget for the TEN-T in the years 2014-2020 totalling EUR 26,3 billion, a new transport net-work will be developed with nine corridors forming the “Core Network” laying the foundation for a truly European transport network across 28 Member States.

The 3200 km long North-Sea Baltic Corridor will connect the Baltic ports of Helsinki/Tallinn with the North Sea ports of Bremerhaven, Amsterdam, Rotterdam and Antwerp as well as the inland port of Brussels. It starts at the modem har-bours on the Gulf of Finland of Helsinki (Vuosaari) and Tallinn (Muuga) passing south through the three Baltic States and North Eastern Poland to Warsaw. From there it follows the traditional East-West corridor to Lodz, Poznan and Berlin con-tinuing to the ports on the North Sea coast and Brussels.

The North-Sea-Baltic Corridor crosses eight Member States and will have branch-es: to Ventspils in Latvia and another to Klaipeda and Vilnius in Lithuania. The Corridor will for the first time provide modern transport links between Finland, the three Baltic States and Poland, Germany and the countries of the Single Market to the West.

The contracts were signed as a result of open procurement procedures and the con-sultants will carry out their work during the next 12 months by supplying detailed descriptions of each corridor, identifying the relevant stakeholders and assist DG-MOVE in establishing a Corridor Forum. The consultants will have to produce cor-ridor work plans, to be submitted by the European Coordinators to the Member States for approval by the end of this year.

Information on Proximare Consortium partners: TRINITI is a Pan-Baltic commer-cial law firm which along with its cross-bor-der practice groups and a combined team of 50 people serves clients in the capitals of Estonia, Latvia and Lithuania. TRINITI is regularly advising clients in projects relating to transport, infrastructure and logistics: completing the Rail Baltic Joint Venture Study for the governments of Estonia Latvia and Lithuania in March 2013; drafting legislative acts required for the development of Riga International Airport; representing a major Lithuanian

road construction company in a tender for a PPP project for the Palanga bypass , and continued advice for the re-structuring of the national airline Estonian Air.

Malla Paajanen Consulting specializes in the planning, management and imple-mentation of major international projects since 1999. The consultancy is involved in fund-raising, project design, and manage-ment of major international projects in the fields of transport and logistics, tourism, investment promotion, talent attraction and business education.

Goudappel Coffeng - is the biggest (ap-proximately 260 employees) and the oldest (founded in 1963) company for mobility planning in the Netherlands. The compa-ny has offices in Amsterdam, The Hague, Eindhoven, Leeuwarden, Deventer and Mechelen (Belgium). The Goudappel Group is fully owned by its employees. The firm’s activities are centred in three main lines of work: advisory services, software solu-tions and process outsourcing. Goudappel Coffeng has thorough experience and knowledge in data collection, data analyz-ing, and transport modelling. The com-pany also has knowledge of the European TransTools transport model which can help in analyzing the use of transport systems and can deliver the information needed for defining the bottlenecks for all modalities. This will also be very helpful regarding the activities for the TENtec information sys-tem which will be one of the defined tasks.

IPG Potsdam - IPG Infrastruktur- und Projektentwicklungsgesellschaft mbH ser-vices focus on a broad range of infrastruc-ture and transport development: ranging from the reconstruction of railway sta-tions via the revitalization and conversion of industrial contaminated areas up to the development of modern logistics center and freight villages. Based on numerous project developments IPG disposes of well-developed networks and cooperation with many important institutions like min-istries, banks, research institutions and partners from the transport industry.

In addition to the consortium Partners the Proximare Consortium enjoys the sup-port of seven Sub-Contractors and the fol-lowing Associate Partners:

• City of Helsinki • Port of Helsinki • Port of Hamburg • City of Berlin • City of Kaunas, • Corridor2, EUREGIO • Aalto University School of Business, Centre for Markets in Transition • LogisticsNet Berlin-Brandenburg • Brandenburg Economic Development Board (ZAB) • VDV Association of German Transport Companies • Deutsche GVZ-Gesellschaft (DGG)

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TrójmiastoGdynia air port subsidies violate European Commission rules – must repay 100 million złBrussels has concluded that financial sup-port to transform the Gdynia airport from military into civilian was granted contrary to EU rules. The decision ends more than half-year investigation, which started be-cause Brussels doubted the legitimacy of the whole enterprise. EU experts stressed that the airport in Gdynia - Kosakowo is just 25 kilometers from the existing air-port in Gdańsk, which is far from fully exploited.

The EU also questioned the business plans and found estimates of revenues and air traffic in Gdynia to be based on unre-alistic assumptions, and that both Gdańsk and Gdynia will suffer. The European Commission has already said that aid can not be transferred to investments that do not have economic justification and are not part of the European development strategy. One of the arguments for a nega-tive decision on Gdynia was that Gdańsk is already on the list of key airports in the European transport network.

In September 2012, Poland notified the Commission of the recapitalization by the local authorities of the Gdynia-Kosakowo company responsible for the construc-tion and operation of the airport Gdynia - Kosakowo. The new airport, which is based on the existing infrastructure of the mili-tary airfield, was to be the second airport in the Pomeranian province and mainly serve general aviation traffic, charters and low cost airlines. This contribution was to cover capital investment costs and operat-ing expenses of the airport in the initial period.

In line with EU state aid rules, public in-vestment in commercial enterprises can be regarded as constituting State aid, if it is effected on terms which a private investor would have accepted in market conditions. During the investigation, the Commission concluded , however, that forecasts of air traffic and revenues presented in the business plan of Gdynia airport were not

realistic, taking into account the fact that the airport in Gdansk is not crowded and is just 25 km away. In such a situation, no private operator would have accepted to in-vest on the same terms.

Given the fact that the airport in Gdansk effectively supports the whole region, us-ing only less than 60 percent of its capac-ity, the Commission concluded that the aid to the airport in Gdynia is incompatible with the common EU state aid rules for the aviation sector.

Public funding of the Airport Gdynia - Kosakowo would lead to an undue econom-ic advantage over the airport in Gdansk. In order to remove this unfair advantage and remedy the distortion of competition caused by the aid, the airport Gdynia - Kosakowo must pay 91.7 million pln. The recovery of the aid granted unlawfully is necessary to ensure a level playing field in the single market of the EU.

Airport operations are com-mercial in natureOver the past 20 years the functioning of airports in the EU has undergone a pro-found change. Earlier airports were treat-ed primarily as infrastructure, whose task was to ensure the accessibility of regions and to enable their territorial development.

Currently, airport operations are primarily of a commercial nature, and the individual ports compete with each other for traffic. In the past ten years, many former mili-tary airfields were converted to civilian airports. This process accelerated with the emergence of low-cost airlines.

Just 20 years ago, incumbent airlines carried more than 65 percent of all passen-gers, while the low-cost airlines sold just 1.5 % of all tickets. By 2011, however, the share of low-cost airlines exceeded 42.4%, above incumbents 42.2%. In 2012, this trend is still maintained (44.8 % for cheap airlines and 42.4 % for incumbent carri-ers). A large number of regional airports in some regions of the EU has led to sub-stantial surplus aviation infrastructure ca-pacity relative to demand from passengers and airline needs.

The content of the decision on the air-port in Gdynia would not change if the new guidelines , the Commission intends to adopt in effect now .. The non-confidential version of the decision will be made avail-able under the case number SA.35388 in the State aid register on the DG Competition once any confidentiality issues . List of new state aid decisions on the internet and pub-lished in the Official Journal are listed in the weekly bulletin online on State aid. n

“These are very important studies to evaluate the accuracy of the long-prepared investment plans of the EU before major financing will be committed to European infrastructure“, said Tõnis Tamme, partner of TRINITI Estonia adding: “We are extremely proud of the fact our

international partners in the Proximare consortium entrusted the experience of TRINITI to act as lead, as it is a great op-portunity to implement our know-how gained from previous large transport and infrastructure projects. The North Sea – Baltic Corridor improves dramatically

the accessibility of Finland and the Baltic States as it connects us strategically to the logistic hubs of Central Europe and Europe’s three largest ports Rotterdam, Hamburg and Antwerp. This is a huge business opportunity for all concerned.” n

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WrocławTest Center for Capgemini in WrocławA Nearshore Testing Center (NTC) has been established together by Capgemini and Sogeti, both part of the Capgemini Group, in Wroclaw. It is specifically target-ed at the needs of the German market and provides software testing offerings such as test automation and mobile testing. Of particular importance with regard to the German market, the new centre will work on testings based on systems of SAP AG.

The new test center is built on a pre-ex-isting German testing team of nearshore center Capgemini in Wroclaw, which is now also expanding. The expansion of the nearshore test center is a response to the strong demand for testing services in the German market.

The expert teams in Poland will work with onshore and offshore project teams

in India, which is consistent with the approach of Capgemini to provide ser-vices through a global network. Maarten Galesloot , CEO of Sogeti in Germany: “The new NTC is the perfect addition to our offshore test centers in India. Thanks to our best-in-class test solutions and the excellent training of colleagues, we are ad-dressing targeted customers who want a German-language component in the provi-sion of services.”

Capgemini employs more than 5000 people in Poland, in its Centers for IT and Business Process Outsourcing services exist in Wroclaw, Kraków, Katowice, and Opole. The Polish market is served primar-ily from the office in Warsaw.

Hewlett-Packard expandsGlobal Business Center Hewlett-Packard, based in Wroclaw, is recruiting special-ists in the field of finance, particularly financial analysts, and individuals with

experience in accounting and manage-ment accounting. Ultimately, employment in the Centre of Financial Excellence will increase by 25 percent.

The Wroclaw center of HP offers a broad cross-section of positions, starting with the financial analyst and ending in mana-gerial positions and directorships. As em-phasized by representatives from HP, the Wroclaw Centre of Financial Excellence is developing very intensively.

“We offer experience staff in all finan-cial sectors, including the Department of Audit, Treasury and Tax. These are the roles that are crucial to the decisions taken by our clients”, said Dominika Świerczyńska, director of the Centre of Excellence in the Global Financial Business Centre for Hewlett -Packard .

The Financial Centre of Excellence (CoE) is an organizational unit of Wroclaw HP Global Business Center, which has been based in Wroclaw since 2008. n

PoznańEiffage team signs to build Polish mega mallEiffage and Apsys have signed a €140m con-struction contract for one of Europe’s larg-est shopping centres. Eiffage Construction and Apsys subsidiary Centrum Lacina will build the Lacina shopping centre in Poznan. The centre will stand on the right bank of the Warta River, a ten-minute walk from the old city centre. The complex will have a gross leasable area of around 100,000m2, comprising more than 300 shops and 3,300 parking places. Twelve cranes will be needed to build the shop-ping centre’s stone-faced walls and glass facades.

The work will be carried out by Eiffage Construction’s subsidiary, Eiffage Polska Budownictwo, over a period of 26 months, including 15 months for building the shell. The company will also create the square in front of the main entrance. Work will

begin this spring for scheduled delivery in 2016.

POLARIS Laboratories opens new laboratory in PoznanPOLARIS Laboratories continues to grow its global footprint as it establishes a new laboratory to serve European customers in Poznan. “Our continued expansion into the global marketplace is exciting,” CEO Bryan Debshaw said. “Opening the labo-ratory in Poznan allows us to grow in the same markets our customers are grow-ing in so we can provide better service to them.”

Poland was chosen for the laboratory location due to its Central European loca-tion, educated workforce and market po-tential. The city of Poznan was selected based on its location, shipping capabilities and available laboratory space. POLARIS Laboratories has acquired space at the Poznan Science and Technology Park, which is designed to help businesses work with students.

“Our award-winning HORIZON applica-tion is being well-received in the European market,” Debshaw said. “Our customers value seeing the condition of their fluid analysis program from a 10,000-foot view before diving in close to review the details that form the bigger picture. No one else offers such a complete package of proven impact, uptime and savings in Europe.”

European Territory Sales Manager Gwyn Simmonds joined POLARIS Laboratories to assist existing European customers and seek out new customers who will send their samples to the Poznan facility.

POLARIS Laboratories is an indepen-dent fluid analysis company headquartered in Indianapolis, Indiana. The company analyzes oil, fuel, coolant and water-based fluids to provide maintenance recommen-dations that reduce maintenance costs, im-prove equipment reliability and minimize unscheduled downtime for companies in the transportation, oil and gas, construc-tion, mining and power generation indus-tries. n

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KatowiceFitch affirms Katowice’s rat-ing at A-Fitch Ratings has affirmed the city of Katowice’s Long-term foreign and local currency Issuer Default Ratings (IDR) at ‘A-’. Fitch has also affirmed the city’s National Long-term rating at ‘AA+(pol)’. The Outlooks are Stable.

Key Rating Drivers:The affirmation re-flects Katowice’s continued good operating performance, albeit weaker than in previ-ous years, but still in line with Fitch’s ex-pectations and the ratings. The ratings take into account Katowice’s high liquidity buf-fer, which supports debt servicing, and its wealthy economy and tax base. The ratings also factor in the city’s projected moderate direct and indirect debt in 2014-2015. Fitch expects the city’s operating performance to continue its weakening trend in 2014-2015, although it should remain above the city’s rating peers and provide strong debt coverage. Fitch estimates the city’s operat-ing margin in this period will hover around 9%-10% (2013: 10.7% according to the city’s estimate). This would correspond on aver-age to PLN140m of projected operating bal-ance, which should 2.5x cover debt service (including debt repayment and interest).

In Fitch’s view, opex growth will con-tinue to exceed operating revenue growth. This will result from the city’s policy, which aims at providing a high level of services to the city’s inhabitants and in-vestment providers. The city’s liquidity buffer will be partially absorbed by capex in 2014-2015, but should remain strong, about PLN200m (PLN390m in 2013), cov-ering the city’s annual debt service, which is projected at about PLN50m on average. Following investments, Katowice’s debt could peak at about PLN700m at end-2014 (end-2013: PLN600m), but will still account for a moderate 45% of current revenue (43% in 2013). The city has already secured all its debt financing needs for 2014-2015 investments, with PLN105m available un-der the contracted long-term loans. The direct debt to current balance ratio should remain healthy, at about six years (four years in 2013), which will be well below the city’s average debt maturity (of about 19 years). Rating Sensitivities: An upgrade of the sovereign rating, accompanied by the continued good operating performance, with reducing pressure on debt-funded capex, could trigger positive rating action. A downgrade could result from a signifi-cant deterioration of the city’s debt cov-erage above nine years due to a sustained

deterioration in the operating margin or a significant rise in the city’s net direct risk.

CEB Resources To Buy Up To 49% Stake In Carbon InvestmentCEB Resources PLC said it plans to acquire up to a 49% stake in Carbon Investment Soo, which controls the the rights to the advanced, high grade Mariola Thermal Coal Project in southern Poland.

The firm said the investment in Carbon Investment will be used to fast-track the development of Mariola which is a sub-stantial advanced thermal coal deposit near Katowice.

CEB said for the year ended December 31, 2013 Carbon Investments made a loss of USD 25,000.

The acquisition will be structured as three separate tranches of investment with the future tranches of investment at the election of CEB.

The first part comprises an initial stake of 10% of the shares of Carbon Investment for GBP 200,000 in cash plus 20 million CEB shares payable within 30 days of signing the deal. At the closing price of 0.715 pence per CEB share on February 17, this equates to a total consideration of around GBP 343,000.

Within six months of signing the deal, at the election of CEB a further 10% stake in Carbon Investment, totalling 20% for GBP 400,000 in cash plus a further 20 million CEB shares.

Within 12 months of signing the agree-ment, at the election of CEB a further 5% stake in Carbon Investment, totalling 25%, for GB 500,000 in cash plus those CEB shares to make Carbon Investment a 19.9% shareholder in CEB.

Thereafter, CEB has the right to increase its shareholding in Carbon Investment to 49% on commercial terms to be agreed be-tween the parties.

The maximum total consideration that may be payable by the company under the agreement, including the market value of any CEB shares which form part of the con-sideration, is capped at GBP 1.4 million.

CEB’s stock traded at 0.700 pence, down 2% on the news.

Silesian company will explore for coalMinister of the Environment issued a license for the diagnosis of coal depos-its in the western part of Malopolska. Previously, the company received a license, which will include the search for deposits in Jaworzna. The company - Hydrotech Carbonia from Rybnik - received a li-cense for the diagnosis of coal deposits in Krzeszowic, Trzebina and La Verna. In December 2013, a similar authorization was issued to Katowice Carbon Investment company, which will explore the bed “Siersza 2” covering 13 km sq and extend-ing into the municipalities of Trzebinia and Jaworzno. After the research work is carried out, the investor will be able to ap-ply for a license to extract coal from the area. “There are more and more hopes and opportunities for the rebirth of coal min-ing in the area of our community” says the mayor of Trzebina Stanislaw Szczurek. According to a study performed in 2011 at the request of the municipality Trzebinia by researchers at the Krakow branch of the Polish Academy of Sciences, in the region of Trzebina only lies under the earth about 227 million tons of coal. n

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Lublin Coal hopeful Prairie Downs Metals has started work on the environmental-impact assessment (EIA) at its Lublin coal proj-ect. Under Polish law, the EIA had to be completed to provide the government with sufficient information to award an envi-ronmental consent decision, which is a pre-requisite for the granting of a mining licence.

The EIA would include a wide range of environmental monitoring programmes, field surveys, ecosystem sensitivity assess-ments, socioeconomic surveys and a de-tailed community and stakeholder engage-ment plan. The assessment would run in parallel with Prairie Downs’ ongoing drill-ing and mine permitting at Lublin, with the company hoping to complete a scoping study during the first half of the year.

Lublin Airport launches Milan flightAbout 50 people flew away on the inaugu-ral flight from the Lublin Airport to Milan. For the first passengers departing from Lublin to Milan, VIP guests included the

mayor of Lublin, and special Italian dishes were prepared.

Some travelers were going skiing. “ Ultimately, I go to Switzerland, so from Milan I go there by car. I am delighted with this new flight, because so far I had to go to the airport in Warsaw”, said Jarosław Urban, a Lublin entrepreneur.

According to Lublin airport authorities, the connection is primarily for business cus-tomers, with flights to benefit employees of AgustaWestland, whose Italian headquar-ters in Milan is located right next to the air-port, as well as PZL Swidnik. Nicola Bianco , Vice President of PZL Swidnik: “We expect

that the employees of the company will oc-cupy several seats in each of the planes”.

But the connection to Milan will also benefit other entrepreneurs. “The connec-tion to Italy will make my life much easi-er”, says Rafal Stachura, vice president of Agromarina of Kulczyn.

Planes on this route are expected to run three times a week. “We want to have short-range flights regionally and internationally, including to Wroclaw and towards the east”, says Krzysztof Zuk President of Lublin.

It is also expected that soon the Lublin-Rome will be started. Flights to Milan cost of about 300 zł one way. n

March 19-20 2014 Warsaw, Poland

www.retail-conferences.com/en

The most important summitof Polish retail & FMCG industry! The Poland & CEE Retail Summit is the right place to be, indeed!

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SpainMinister speaks on foreign investment On the 17th February 2014 the Polish-Spanish Chamber of Commerce orga-nized a business lunch meeting with the Vicepresident of the Republic of Poland and Minister of Economy, Mr. Janusz Piechociński, and the Member Companies.

The main topics of discussion were the foreign investment activities in the Polish market, the bilateral commercial relation-ships of the country and the current eco-nomic situation of Europe.

Piechocinski pointed out that Spain is the 14th export market and the 12th im-port market for Poland. Likewise, he said that Spanish companies find Poland an atractive and interesting country to create a new business in, the Polish market is an appealing invest and entrepreneur market.

In 2013 the Council of Ministers decided to extend the performance of the Special Economic Zones until 2016, which will ease the access to these areas given the moderate incorporation criteria. With this change the Ministry of Economy intends to aid   significant investments from the economic standpoint.

Currently, Poland is, in the finan-cial aspects, the major beneficary of the European, stated the Vicepresident. In the years 2014-2020 these funds will be an im-portant asset to increase the competitive-ness and innovation of the businesses.

Finally, Mr. Piechocinski mentioned the Renewable Energy Sources bill project. The measure was accepted by the Fix Commitee of the Council of Minsters on the 6th of February 2014, and should soon be passed on to the Government session and then to the Parliament. n

NetherlandsBusiness drinks in PoznanOur representation in the Wielkopolski region made a brilliant start of the year 2014 with a businessdrink on 21 January that was held in hotel Mercure in Poznan. The event was attended by 60 people which showed that more and more members of the NPCC are finding their way to the busi-nessdrinks in Poznan.

Participants listened to speeches of Tomasz Kayser, deputy Mayor of the city

of Poznan, Ambassador Bekkers of the Netherlands Embassy in Warsaw and Chairman Geert Embrechts of the NPCC. We celebrated the presence of many emi-nent guests. Among them was Ewald Raben, world entrepreneur of the year 2012.

During the evening, outgoing chairman Theo Tiegelaar handed over his position to Christine Colijn, the new Chairperson of the Wielkopolski department of the NPCC, presented the plans and the calendar for the year 2013 in Poznan. Christine Colijn: “We have started the new year with a new and enthusiastic board. The high turnout

is an great support for our chapter and motivates us even more to present an out-standing line-up of events in this region.”

SwitzerlandNext event is a Breakfast Meeting: Criminal law audit – diagnostics of com-pany management in terms of criminal li-ability, set for 18 March. n

Chambers of Commerce News

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Belgium Belgian Business Mixer in WarsawHotel Bristol, Warsaw; 25.03.2014, at 6:30 pm.

The Belgian Business Chamber has the pleasure to invite you to the Belgian Business Mixer in Warsaw. The meeting will offer a good opportunity to the BBC members, Belgians and other friends of the Chamber to broaden their professional network and spend their evening in a very friendly atmosphere.

Free seminar “Current opportuni-ties of financing and new state aid rules for 2014-2020.”KPMG headquarters, ul Chłodna 51, Warsaw, 16th floor; 11.03.2014, 9.00-11.00

Organizers: KPMG together with the Belgian Business Chamber, Spanish-Polish

Chamber of Commerce, Netherlands - Polish Chamber of Commerce. KPMG to-gether with Belgian Business Chamber, the Netherlands - Polish Chamber of Commerce, the Spanish-Polish Chamber of Commerce have the pleasure to invite you to a seminar entitled: “Current opportuni-ties of financing and new state aid rules for 2014-2020”. The speaker - Mr Bartosz Iglewski - Tax Manager in KPMG Poland, has over 7 year experience in the scope of state aid. The seminar is free of charge. Please register at bb(at)belgium.pl before 4th March (the main organizer has the right to refuse registration for this event).

Supporting SME’s on South East Asia Markets: a Belgian know-how useful for PolandPAIIZ Headquarters, ul. Bagatela 12; 24.04.2014, from 9.00 am. to 2.30 pm.

Organisers: Brussels Invest and Export in co-operation with the BBC, the Agency

PARP, Embassy of Malaysia, Embassy of Indonesia.A seminar organised by Brussels Invest and Export in co-operation with the BBC , and the Agency PARP as well as the Embassies of Malaysia and Indonesia, at the Agency PAIIZ Headquarters, ul. Bagatela 12; 9.00-14.30. At this occasion, for the first time Poland and Belgium (through the Agency PARP and BIE) will compare the financial and non-financial instruments available for supporting the exporting potential of their SME’s outside the European Union. The case-study of South East Asia will be detailed thanks to Belgian Lawyers (includ-ing a BBC member) working in this region, who will share their knowledge of South East Asia and explain to Polish companies the fantastic (and neglected) opportunities as well as the specific hurdles of this region. The success stories of 2 Polish companies in South East Asian Countries will conclude the seminar before a networking lunch. n

IndiaIndia to showcase engineering prowess in PolandSeeking newer pastures for the engineer-ing exports in the wake of headwinds in the traditional markets, EEPC India will take a 100-member strong engineering manufac-turers to participate in the ITM, Poland - a high tech Innovation and Technology show to be held June 4-6. With the support from the Commerce Ministry, EEPC INDIA will be organising India Show at the ITM, Poland (Innovations, Technology, Machines), 2014 which will have participation of over 1000 global exhibitors from 30 countries.

While addressing a Seminar on “Doing Business with Poland”, EEPC INDIA Chairman Mr Anupam Shah said that “at the India Show at Poznan, engineering manufacturers will showcase our hi-tech capabilities, especially in the areas of energy and transport sectors of railways, shipping and aviation- which are of special interest to the Polish economy”.

The Seminar was held on the occasion of the visit of Ms Katarzyna Kacperczyk, Under Secretary of State, Ministry of Foreign Affairs of the Republic of Poland along with a high level delegation including HE Mr Piotr Klodkowski, Ambassador of Poland in India and Mr Andrzej Arendarski, President of the Polish Chamber of Commerce. The oc-casion was also graced by Mr Dammu Ravi, Jt Secretary, Dept of Commerce, Ministry of Commerce & Industry, Govt of India.

During the proceedings, Ms Kacperczyk underscored the need for increasing the mutual business engagement between India and Poland. The bilateral trade has been less than USD two billion, very much below the potential. “We can surely in-crease our exports of engineering goods, especially relating to the railways, ship-ping etc, the areas where Poland has shown quite a bit of strength, “ Mr Shah said.

He said at the request of the the EEPC India (formerly known as the Engineering Export Promotion Council) the organiz-ing authorities of ITM Poland 2014 have already agreed to invite India to the pres-tigious international innovation show as a Partner country.

The India Show within the ITM, Poland, is an initiative of Department of Commerce, to promote India’s image and to provide a platform for Indian engineering industry to showcase its strength and capabilities in both emerging and developed markets. “ The show is expected to build awareness about India’s economic strengths and proj-ect its attractiveness as a preferred invest-ment destination, as also to enhance our economic engagements with Poland”.

While the Polish economy is one of the key economies of the European Union, the bilateral engagement with India is quite low. In the fiscal year 2012-13, India’s total exports to Poland were $810 million, ac-counting for just 0.27 per cent of our total exports. Likewise, imports were $863 mil-lion, accounting for 0. 18 per cent of India’s imports.

Since joining the EU in Poland has mod-ernised its transport networks, for which the Indian engineering sector can contrib-ute significantly. n

PortugalAnnual General Meeting elects BoardOn the 6th March, the Polish-Portuguese Chamber of Commerce is organizing the Annual General Meeting. During the event, there will take place elections to the PPCC Management Board, presentation of the fi-nancial statement of the PPCC for 2013 and presentation of the PPCC Business Plan 2014. After the meeting, there will take place a reception on the occasion of the 6th Anniversary of the Polish-Portuguese Chamber of Commerce.

ErasmusOn the 7th March 2014, the Polish-Portuguese Chamber of Commerce is or-ganizing the 6th edition of the Welcome Dinner for the Portuguese Erasmus Students in Poland. The dinner gives stu-dents the opportunity to meet representa-tives of the Portuguese business commu-nity in Poland and Embassy of Portugal in Warsaw. The event is organized on yearly basis and always counts with around one hundred Portuguese students. n

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United KingdomPolskiBus connects Wrocław and Kraków every hourPolskiBus.com announced that from the 1st of March it will increase the number of connections on the route Wrocław-Kraków as part of the P14 line. Courses between the capital of Dolny Śląsk (Lower Silesia) and the capital of Małopolska (Little Poland) will be performed every hour. Passengers on the route Wrocław-Kraków receive free refreshments

Piotr Bezulski, Managing Director of PolskiBus.com comments: We are increas-ing the frequency of courses on the P14 line between Wrocław and Kraków in response to the needs of our customers who frequently travel on this route. These are very attractive cities, both in terms of tourism, business and trade. PolskiBus.com offers the residents of Wrocław and Kraków even more convenient connections to reach quickly and comfort-ably their universities, home, shopping and a variety of cultural events in the city.

PolskiBus.com’s passengers can trav-el comfortably and safely on board of a luxury, double-deck Van Hool Astromega coaches equipped with reclining, leather seats, free Wi-Fi, air conditioning and toi-let. In addition, on the way from Wrocław

to Kraków each passenger receives free refreshments: hot and cold drinks, sweet buns/croissants, cookies and water.

Norton Rose advises on landmark EUR 900 mln Polish telecom high-yield bond offeringGlobal legal practice Norton Rose Fulbright has advised J.P. Morgan and Bank of America Merill Lynch as global coordina-tors on EUR 900 million high-yield bond offering of P4 Sp. z o.o. (Polish Mobile Network Operator MNO operating un-der the ”PLAY” brand). The funds raised were used for refinancing PLAY’s existing funding arrangements and distribution to PLAY’s shareholders. The debt offer-ing comprised EUR 600 million fixed rate senior secured notes due in 2019, PLN 130 million (EUR 30 million) floating rate se-nior secured notes due in 2019 and EUR 270 million fixed rate senior notes due in 2019.

The transaction also involved a PLN 400 million revolving credit facility granted to PLAY by Bank Zachodni WBK S.A. (Santander Group) and Alior Bank.

The transaction is one of the largest ever EUR denominated high-yield bond offer-ings made by a company based in Central and Eastern Europe.

Grzegorz Dyczkowski, partner in the Warsaw office of Norton Rose Fulbright, commented: “The issuance of high-yield bonds by PLAY is one of the most sig-nificant transactions in the Polish and European debt securities market in recent

years. Polish companies are with increas-ing frequency seeking financing from the international capital markets in addition to or in place of bank financing. We are very pleased that we have, in cooperation with our clients, PLAY Group and other advis-ers, brought this transaction to a close within an extremely short timeframe and at a price very advantageous to PLAY. This is one of a number of complex debt financ-ing transactions we have advised on in the Technology and Innovation sector in Poland and follows the financing of the acquisi-tion of Polkomtel by entities controlled by Zygmunt Solorz-Żak in 2011 which com-bined financing arrangements in the form of bank credit facilities, the issuance of high-yield bonds and payment-in-kind, and the partial refinancing of Polkomtel’s debt in 2013, which Norton Rose Fulbright ad-vised the arrangers on.”

The Warsaw team was led by Grzegorz Dyczkowski and Piotr Strawa, assisted by Tomasz Rogalski, Marta Kawecka, Krzysztof Gorzelak, Agnieszka Braciszewska, Joanna Braciszewska-Szarapa, Jan Grochowicz, Michał Błaszkiewicz, Adrian Koziński, Konrad Leszko, Daniel Popek and Aneta Janecka. Latham & Watkins acted as English and New York legal counsel to the global co-ordinators. PLAY was advised by White & Case. Mandated lead arrangers and agent under the revolving credit facility were ad-vised by CMS Cameron McKenna. Citibank, N.A., London Branch acted as security agent and was advised by Reed Smith. n

ScandinaviaNorwegian investor in GdanskNorwegian investor Powel AS opened its first office in Poland. The new branch will support the development of software for a growing number of customers. Powel AS creates key business software and pro-vides services associated with it for energy companies, local governments and contrac-tors in the engineering sector. The new of-fice is located in the Gdańsk Science and Technology Park, which is an important center for ICT in the region. Software cre-ated in Gdansk will serve to optimize the electricity generated in hydroelectric power plants, solar and wind power, and to man-age smart grids, water and sewage, as well as supporting the work of companies in-volved in civil engineering.

Powel AS has offices in Norway, Sweden , Denmark, Switzerland, Turkey and Poland.

Fortum and the City of Plock signed letter for construction of power plantsFortum Power and Heat Poland and the city of Plock signed a letter of intent - a declaration to take action towards building by Fortum pow-er plant in Plock - adapted to the use of clean fuels, including municipal waste. The pre- in-vestment cost is estimated at about 140-150 million euros. Fortum is considering con-struction of a modern power plant equipped multi-fuelled boiler. In addition, the company plans to launch the installation of heat recov-ery from the exhaust, which further increases the efficiency of the plant.

“The project fits perfectly into Fortum’s strategy of sustainable development, which involves the construction of high- power plant based on a variety of fuels available locally - says Mikael Lemström, President of Fortum Power and Heat Poland. “The planned power plant will be a modern, environmentally friendly heat source for the inhabitants of Plock”, he added.

The multifuel power plant in Plock is to supply heat to the district heating net-work and collaborate with the existing, local energy producer. Fortum has started preparatory work on which the investment decision is made. Average time of imple-mentation of similar projects is 2-3 years after the final decision.

“The cooperation with Fortum will im-prove the energy security of the city and will improve municipal waste manage-ment system. We see the possibilities of creating new alternatives sources of ener-gy, but also fully co-operating with the ex-isting local energy producer”, says Andrzej Nowakowski, President of Plock.

The next step, after signing a letter of intent, will be to develop the most optimal solutions: technological and legal imple-mentation of the new investment. It is nec-essary to include feasibility study of the project and the appointment of a suitable location - away from the center but within the administrative boundaries of Plock. n

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United StatesMinister of Finance at AmCham’s meetingAt the beginning of February, the American Chamber of Commerce in Poland organized a conference, whose special guest was the Minister of Finance, Mateusz Szczurek. During the meeting, the Minister summa-rized actions undertaken by the depart-ment which aimed at reducing the impact of crisis and described biggest challenges of Polish economy.

According to the Minister, one of the priorities is to introduce tax ordinance re-forms and tightening up the system, which may unavoidable due to the increasing deficit. Foreign investments are an impor-tant factor in economic revival. Szczurek announced the way of disbursing public resources which will not supplant private enterprise.

“Polish businessmen seek for solutions to make Poland an attractive location for investments, not only for foreigners but also for their local partners”, said Tony Housh, a member of AmCham Board.

Guests expressed their conviction that standardization and strictness of tax system along with minimal state interference will significantly contribute to economic indexes improvement and encourage foreign entre-preneurs to locate their capital in Poland.

AmCham Wroclaw celebrates its 10th anniversary

The AmCham Office in Wroclaw marked its 10th anniversary. On this occasion, the Office organized a meeting with busi-ness and politics representatives during which previous accomplishments as well as plans and chances for future were dis-cussed. Special guests of the meeting were Stephen Mull, the Ambassador of the USA to Poland.

AmCham Wroclaw has been supporting the development of American investments in the region from the beginning, mediat-ing between entrepreneurs and politicians, indicating preferable directions of change or growth. Nowadays, Lower Silesia is per-ceived as one of the most attractive locations for investment in Poland and American en-trepreneurs are considered the most active business group apart from the EU.

It is estimated that every fifth capi-tal expenditure is located in our region, and almost 30% of companies registered in Wroclaw have foreign capital share.

According to our calculations, American firms have invested in Lower Silesia over 1,5 billion PLN and created – directly and indirectly- almost 50 thousand jobs. We are glad to say, that AmCham significantly contributed to the growth of the region – said Joanna Bensz, AmCham Wroclaw Office Director.

In order to provide entrepreneurs with the assistance tailored to their needs, AmCham Wroclaw regularly organizes business meetings during which guests may presents their apprehension or reserva-tion concerning particular issues as well as postulate certain solutions. Thanks to the constant contact with the business environ-ment, the Chamber is able to offer support on every level of an investment process.

The anniversary of working for the US-EU economic relations improvement was also an opportunity to remind the TTIP agreement. AmCham Wroclaw involved in promoting the Partnership and benefits that will result from it as one of the firsts. Members of the Chamber believe that the agreement is a great chance of development for Lower Silesia, and may lead to enrich-ment and profitable exchange of experience between entrepreneurs from the world.

AmCham organized the biggest TTIP conference in EuropeThe American Chamber of Commerce in Poland actively supports promotion of TTIP among Polish politics and business representatives. In order to present bene-fits of the Partnership, AmCham organized a conference in which 300 hundred people took part. Among invited guest were: Elena Bryan, Senior Trade Representative at the U.S. Mission to the European Union, Denis Redonnet, Head for Trade Strategy DG TRADE of the EU, , Stephen Mull, the U.S. Ambassador to Poland and Katarzyna Kacperczyk, Undesecretary of State at the Ministry of Foreign Affairs and.

TTIP is the biggest economic agree-ment in the world, which aims at elimina-tion of custom duties and harmonization of procedures concerning trade exchange between the USA and the UE. Guests ac-cordingly admitted that the Partnership creates great opportunities for both eco-nomics and a chance to increase the com-merce income. Currently, the course of trade between States and the EU generates 2 billion dollars a day. Stephen Mull stated that the agreement will be of big signifi-cance on both sides of the Atlantic, creat-ing new possibilities at such difficult time for the economy.

According to estimations, thanks to the agreement implementation, over 100

000 new job positions will be created and the trade proceeds, including third coun-tries, will increase by around 340 billion EUR. Direct benefits from the Partnership implementation will be noticeable also in Poland. Katarzyna Kacperczyk, claims that TTIP will serve as an impetus for intensification of trade actions between Poland and the US. Our country is already the biggest receiver of American invest-ments in Central Europe. Thanks to stan-dardization of regulations and abolish-ment of trade barriers, Polish economy may gain even 120 billion dollars a year. Preliminary analysis indicates that one of the main beneficiaries of the agreement will be small and medium entrepreneurs, for which it is impossible to match current complicated requirements and expensive procedures.

High customs duties, mutual non-recog-nition of certificates and complicated reg-ulations prevent smaller companies from competing on the international market. TTIP implementation will allow this sec-tor to develop dynamically - said Joseph Wancer, AmCham Chairman of Directors Board.

Guests emphasized that negotiations concerning the agreement are a great chal-lenge, due to the complexity of issues and the coverage of TTIP. Denis Redonnet noted however, that the work proceeds smoothly, as participants have similar goals. Negotiations are still in progress, but they are held in an open way, engaging all concerned parts, aiming at finding com-promise in points of potential dispute. n

IrelandEnterprise Ireland / Irish Chamber of Commerce Saint Patrick’s Business MixerThursday, March 20, 2014; 6:00pm – 10:00pm; Warsaw Tortilla Factory

Combine business with pleasure and cel-ebrate Saint Patrick’s in an informal set-ting, with a classic Irish foods and drinks menu. This is an ideal way to say thank you to Polish customers and potential new customers by offering a little bit of Irish hospitality. Invitation only – please contact Agnieszka Michalska agnieszka.michalska@enterprise-ireland.com if you would like to attend. n

CEE ENERGY AWARDS 2014CEE ENERGY AWARDS

May 29th 2014, Warsaw, Poland, Hotel InterContinentalwww.ceeEnergyAwards.com

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GermanyMeeting with the Speaker of the Sub-Carpathian RegionThe possible use by local gov-ernments and entrepreneurs EU funds available under the new financial perspective 2014-2020 was the subject of the meeting with Marshal of Podkarpacki Wladyslaw Ortyl with local gov-ernment and businesses in our region. The meeting, initiated by the District of Leżajsk, and councilor Stanislaus Bartnik took place in the Museum of Leżajsk.

Meeting with the Speaker Province was a good opportunity to present their proposals, com-ments or questions on topics re-lated to the support of the region in the new financial perspective for 2014-2020. After questions and comprehensive answers, it was time for the presentation of the Industrial Park Municipal Lizhensk, including the genesis of the park, the current state of real estate development, investment products as well as the further steps that need to be made in order to strengthen the importance of the park on the market. The Park has available 16 hectares of land for production and storage area of 2,000 m2 waiting for investors. n

ItalyThe Italian Chamber of Commerce and Industry in Poland (CCIIP) is opening two offices to support Italian companies di-rectly in the most strategic regions. A new

office in Katowice will be headed by Pietro Vinci, lawyer owner at VINCI & VINCI Sp. z o.o. He will enhance CCIIP’s network by connecting Italian businessmen across the region. The next Italian Business Mixer outside Warsaw will take place in Katowice on the April 9th. It will be followed by

Italian Business Mixer in Poznan in May to inaugurate another office. It will be headed by Monika Urbaniak, lawyer owner at Kancelaria Radcy Prawnego dr Moniki Urbaniak. More information about these events will be available on the website: www.cciip.pl n

Chambers of Commerce News

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For the twentieth time at the Teatr Wielki (Grand Theatre), the Business Center Club presented nominations and awards and its premier prize Golden Statuette of Polish Business Leader.

The Golden Statuette was awarde to Professor Kleiber, for his involvement in the development of the Polish economy and building bridges between the worlds of science and business, and to Herman Van Rompuy, for his contribution in solv-ing the problems of the European Union, co-creation of the concept of European Monetary Union, and for giving new po-litical impulses to the European Union and EU entrepreneurship.

The annual Social Solidarity Medals - awarded to those involved socially in help-ing the needy, and to promote the idea of corporate social responsibility – went to Urszula Gocał, Joanna Szymana, Donata Krol and Stanislaw Szyszkowski.

Nearly 2,000 guests took part in this year’s Gala, with attendance from Poland’s top entrepreneurs, members of the govern-ment, parliamentarians, and diplomats.

Since 1991, the Business Centre Club has given out Golden Statuettes of Polish Business Leader to companies and their CEOs. During this year’s gala 41 companies received Diamonds, from a nomination list of 107 companies.

BiznesPolska.pl and BizPoland Magazine were media partners of the event. n

Events

BCC – Grand Gala of Polish Business Leaders

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Over 400 Foundation mem-bers and friends filled the Grand Ballroom of the Warsaw Hilton Hotel in early February for the Foundation’s 11th Annual Dinner Dance, with the theme “Hollywood’s Best Music.”

The Foundation is an international net-work of corporate CEOs working in Poland to affect positive social change through targeted corporate philanthropy. BiznesPolska.pl and BizPoland Magazine were media partners of the event. n

Events

Foundation for Corporate Responsibility celebrates annual dinner dance

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EuropaProperty’s 6th annual CEE Retail Real Estate Awards recognised leader-ship in retail real estate in CEE by award-ing a broad spectrum of winners for their continued market success. The awards brought together some 450 top real estate professionals from the major retail market sectors in the CEE region and were selected by an international academy of jurors.

Property developer Mayland Real Estate shone the brightest on the evening picking up three awards. The company received high praise and recognition for their Riviera Shopping Centre, currently Poland’s largest retail development. The centre won the Extended/Refurbished Project of the Year as well as the coveted Overall Project of the Year award. Further emphasising their success in 2013 the ju-rors also voted Mayland the Developer of the Year.

The recently opened TriGranit-developed and managed Poznan City Center won one of the most prominent retail project prizes, Retail Project of the Year in the large category. Poznan City Center, which opened its gates on 25th October 2013, has proven to be a huge

success – since its opening it has welcomed more than 5 million visitors.

ECE Projektmanagement collected two project awards. One for their Arkad 2 shop-ping center in Hungary, highlighting a pos-sible upturn in the country’s fortunes and Maltepe Park in Turkey. The projects were awarded in the Turkey Shopping Center of the Year and Shopping Centre of the Year in the medium category.

Other projects awarded on the night included Plac Unii, Liebrecht & Wood’s popular office and retail development in Warsaw, which won Mixed-use Project of the Year, Neinver’s Factory Annopol in Warsaw for Factory Outlet Centre of the Year, Dekada Grojec in Grojec, Poland won Retail Park of the Year and Fashion House Warsaw was awarded Best Performing Factory Outlet Center of the Year.

Ten key retailers were awarded on the night. Overall Retailer of the Year went to Deichmann, which was recognised for their continued expansion and confidence in the CEE region throughout 2013 and the Newcomer of the Year award was received by SinSay. Other major winners for the retailer specific awards included: Costa

by Coffeeheaven, Pure Jatomi Fitness, Saturn, Alma, Rossman, CCC, Kazar and Reserved.

BiznesPolska.pl and BizPoland Magazine were media partners of the event. n

Events

CEE Retail Real Estate Awards

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In conjunction with the Embassy of Canada, the PCCC held the Winter Reception at the Embassy on 4th February, with the theme Winter Olympic Games. After a short introductory welcome by Ambassador Alexandra Bugailiskis, the guests were addressed by the Associate Deputy Minister of Foreign Affairs and Canada’s G8 Sherpa, Mr. Peter M. Boehm. Mr. Boehm briefly covered issues includ-ing the new bilateral trade agreement, the Winter Olympic Games, and the bond be-tween Canadian and Polish Governments, business and individuals.

Following Mr. Boehm’s presentation, Mr. Tomasz Lisiecki (President of the PCCC) thanked the sponsors of the event: Apotex, Bireta, Miedzi Copper, Perła and Vac Aero.

Tomasz also recognized new mem-bers to the PCCC including Citibank, Dentons, E&Y, Mielżyński Wine, Spirits and Specialties, Redknee, Sandoz and SNC Lavalin Polska.

About 120 guests attended the function and were treated to sumptuous food pro-vided, once again, by “Why Thai” restau-rant. n

Events

Canada’s Winter Reception

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On February 7, during the Gala orga-nized at the Sofitel Warsaw Victoria hotel, the French Chamber of Commerce and Industry in Poland celebrated its 20th an-niversary. More than 450 guests partici-pated in the Gala, including the current and former presidents of the CCIFP, poli-ticians and the presidents of the largest French investors. During the Gala guests could see two fashion shows of French de-signers - Gerard Darel and Tara Jarmon and a fashion show of the Polish designer Ewa Ciepielewska. The partners of the Gala were: Leroy Merlin, Pierre Fabre Dermo Cosmétiques, EDF, Mazars, SPB, Galéries Lafayette, Pernod Ricard Polska, Servier, AP Uniapol, Société Générale and Sofitel Warsaw Victoria. The partners of the fash-ion shows were: Desir Paris, Tara Jarmon, Gerard Darel, Ciepielewska Design, Badura and Sisley. BiznesPolska.pl and BizPoland Magazine were media partners of the event. n

Events

Gala of the French Chamber of Commerce

PolandSpecialtyFoodsExpoConnecting international food producers with buyers in Poland

www.PFEX.pl

For further details about Exhibition or Sponsorship: Thom Barnhardt Wiktor Glinski tb@biznespolska.pl wglinski@biznespolska.pl +48-508-143-963 +48-694-492-067

— 11 June 2014, Royal Castle, Arkady Kubickiego, Warsaw —

Concept:The Polish market for international food producers is developing quickly as an export destination, as Polish consumers’ purchasing power continues to grow. The Poland Specialty Foods and Beverages Expo (PFEX) aims to connect foreign food producers with Polish food buyers: large and niche retailers, importers, distributors, and major hotels.

Organized by media group BiznesPolska, which organizes multiple niche events in Poland as well as publisher of the annual directory Food Exports Poland, the Expo will be accompanied by an evening networking business mixer on 11 June – to further build contacts between Poland-based buyers and foreign producers.

Exhibitors:We expect more than 100 exhibitors, grouped by “Country” and “Product”:

• Foreign food and beverages producers seeking to expand in Poland

• Specialty food producers and distributors seeking to grow in Poland

• Beverages and the drinks sector will be also represented by wine producers, and specialty drinks.

n Country pavilions: Spain | France | Italy | Germany | Holland | Latin America | US and Canada | etc.

n Product pavilions: Specialty Foods | Cheeses | Meats | Chocolates and Sweets | Teas and Coffees | and Wines.

Profile of visitors: • Food and drinks producers, and

specialty foods, from western Europe, Americas and Asia

• Polish food buyers from large and niche retail networks, importers, distributors, and F&B buyers from Poland’s major hotels.

Visitors are mostly from Poland (while Exhibitors are mostly from western Europe). The primary groups attending are retail buyers, including retail networks (large as well as niche) as well as department store buyers, bistros, restaurants, and specialty stores. Visitors are looking for new products to distribute, new products to import and export, and to buy specialty food and beverage products.

Supporting International Chambers of Commerce