poland today business review+ no. 58

No. 058 / 27th October 2014 / www.poland-today.pl / magazine, conferences, portal, newsletter

1 year subscription: EUR 690 (PLN 2760)

Newsletter Editor: Lech Kaczanowski

[email protected]

tel. +48 607 079 547

Sales Contact: James Anderson-Hanney

[email protected]

tel. +48 881 650 600

MANUFACTURING & PROCESSING

Automotive seals maker SaarGummi to build plant in Tarnów page 3

BANKING & FINANCE

Consumer protection watch-dog fines four financial institu-tions over unit-linked policies page 3

ENERGY & RESOURCES

Polish Polenergia seeks to plug Ukraine into Western Europe's gas supply network page 4 Polish Elemental Holding goes shopping in Slovakia page 4

PROPERTY & CONSTRUCTION

Polish builders are slowly re-gaining foothold, says Deloitte page 5

IT & TELECOMS

Railway giant PKP makes se-cond attempt to sell telecoms unit TK Telekom page 7

START-UPS

Polish e-learning site Brainly raises USD 9m financing, opens office in NYC page 7

TRANSPORT & LOGISTICS

Maltese firm Mariner Capital negotiating acquisition of Port of Gdańsk's stevedoring subsidiary page 6

RETAIL PROPERTIES

Belgian real estate firm Mitiska REIM joins forces with Warsaw's Peppercorn Properties to invest in Polish retail parks page 9 Poland's retail stock increases by 0.3m sq.m in Q1-3 page 10

FOOD

Kellogg reveals back story of their Kutno project page 11

POLITICS & ECONOMY

Top politician makes explo-sive claims about Russia and Ukraine page 11

OPINION

Quote authorisation and press freedom page 13

KEY FIGURES

Up-to-date macroeconomic figures, currency & stock market data and lots of other hard-to-find info pages 14-16

Delta Packaging's clients include the likes of McDonald's, Kelogg, and Nike. Photo: Delta Packaging

Delta Packaging Delta Packaging Delta Packaging Delta Packaging zones in onzones in onzones in onzones in on GliwiceGliwiceGliwiceGliwice Northern Irish firm Delta Packaging, which supplies the world's top consumer and foodservice brands, will open a greenfield plant next year in the Silesian town of Gliwice. Estimated at EUR 20m, the project is to create more than 100 jobs. page 2

CCCCisco isco isco isco to create 500 to create 500 to create 500 to create 500 jobs in two yearsjobs in two yearsjobs in two yearsjobs in two years US networking and telecom technology giant Cisco plans to dou-ble the headcount at its Kraków support center that currently employs 500 staff. BR+ talks to Cisco's Norm DePeau. page 5

A n n a M a r i a M c Ke eve r, D i re c to r fo r C E E + 4 4 2 0 7 1 2 1 5 0 5 6 | a n n a . m c ke e ve r @ g l o b a l re a l e s t ate. o rg www.globalrealestate.org/CEE2014

All

mat

eria

l thr

ough

out i

s su

bjec

t to

chan

ge w

ithou

t not

ice.

The CEE Region’s most Senior Level Real Estate Investment Meeting

• Financing CEE

• Foreign Funds

• International Capital

• Logistics & Distribution Markets

• Investing in CEE

• Retail & Leisure

• SEE Investors

• Tenants & Occupiers

• Office facilities

A GLIMPSE OF THE DISCUSSION TOPICS

and many more... and many more...

CEE GRI2014

The 10th annual

Árpád TörökCEOTRIGRANIT MANAGEMENT CORPORATION

Dr Edgar RosenmayrMD/Board MemberKULCZYK SILVERSTEIN PROPERTIES

Michal KramarzHead of Retail, Finance & TourismGOOGLE POLAND

Christopher ZeunerMD - CEE Acquisitions LASALLE INVESTMENT MANAGEMENT

Florian NowotnyCFOCA IMMOBILIEN ANLAGEN AG

Martin Schlichting VP & Head of Int’l Clients & Cross Border FinanceERSTE GROUP

Katarzyna Zawodna Managing DirectorSKANSKA PROPERTY POLAND SP. Z O.O.

Olivier Gerard-Coester Board MemberMAYLAND REAL ESTATE

WARSAW 1-2 DECEMBERS O F I T E L V I C T O R I A

GRI meetings provide a forum for the world’s leading real estate players to develop valuable relationships, find new business partners, and strengthen their global networks.

weekly newsletter # 058 / 27th October 2014 / page 2


Delta Packaging Delta Packaging Delta Packaging Delta Packaging to to to to employ 105 at new employ 105 at new employ 105 at new employ 105 at new factory in Gliwicefactory in Gliwicefactory in Gliwicefactory in Gliwice

Northern Ireland-based specialty packaging firm Del-ta Packaging will launch a 10,500 sq.m production facility next year in the Gliwice section of the Katowi-ce Special Economic Zone. The plant will be devel-oped by industrial property firm Panattoni Europe as a build-to-suit project at the latter's Panattoni Park Gliwice II, and it is expected to reach completion in mid-June 2015. Delta supplies innovative packaging for products ranging from ice cream to consumer elec-tronics. "Poland was always the likely choice, although we ex-plored joint venture and partnership options in Czech Republic, Slovakia, Slovenia and Hungary. We view the location as perfect for servicing the Western Euro-pean countries, the attractive Polish market itself and of course as a springboard for supply to the East. The existence of a sophisticated printing and packaging in-dustry, the highly skilled and educated workforce and a real 'can-do' attitude shown by everyone involved in the project cemented the decision making process with our partners", Neal McCone, Director at Delta Packaging Ltd, tells Poland Today. The new Polish facility will include close to 900 sq.m of office space and, more importantly, a purpose-built 9,700 sq.m storage and manufacturing unit, encom-passing both rotary flexographic and sheet-fed litho-graphic printing technologies, in-line functional barri-er coating capability and a full range of gluing & finish-ing options. The investors, Delta and its partner Euro-pean Packaging Solutions, have obtained the permit to

operate in the Katowice special economic zone, which offers a range of tax breaks and other incentives.

Earlier this year Delta has completed a brand new production development in Belfast. Photo: Delta Packaging

"Our project partners, European Packaging Solutions Poland Sp. z. o.o are projecting a capital investment to-tally approx EUR 20m over five years. The initial phase in building, M&E and equipment is approx EUR 10m. The plant should have an optimum capability of approximately 30,000 tons throughput per annum. We expect to have approximately 105 employees by the end of phase two," says McCone. "The plans are for European Packaging Solutions to develop its packag-ing offering in line with Delta's Northern Irish range: high quality, volume folded carton solutions for the Food Service, Retail Food and Beverage and House-hold Goods sectors. Their offer will include both litho and flexo printing capability and the partnership is expected to develop stronger supply links with Deltas existing and proposed new customers," he explains. Gliwice is an industrial town situated near the inter-section of the A1 motorway that leads from Baltic ports down to the Czech Republic and the south of Europe, and the A4, which links Germany and Ukraine, passing through some of southern Poland's key industrial hubs along the way.

Delta Packaging Limited is an independent manufac-turer of high quality printed folding carton packaging based in Belfast, Northern Ireland. Serving the food manufacturing industry, specifically for the dairy, pre-pared meats, cereals, beverages, ice cream, bakery and biscuit sectors as well as having strategic partnerships in the global branded food service sectors, the compa-ny has enjoyed year-on-year growth for the last dec-ade. Its clients include the likes of McDonald's, KFC, Kellogg, Nike as well as top UK retail chains.

Delta serves some of the world's largest foodservice brands, among other sectors. Photo: Delta Packaging

As for Panattoni Europe, the US-owned industrial property firm is currently developing 162,600 sq.m of new warehouse space in Poland, which is comprised of such investments as the recently established Panattoni Park Sosnowiec, Panattoni Park Ożarów II or Panattoni Park Poznań III and IV, as well as a new facility at Panattoni Park Łódź East. The company has just completed two giant fulfillment centers for Ama-zon totaling 246,000 sq.m. The developer also tops the podium in terms of performance for H1 2014 - the company delivered 108,000 sq.m to the market (incl. 50,000 sq.m for Castorama and 33,600 sq.m for Po-laris), that is more than twice as much as the runner-up, and also had the highest number of square meters under construction, with as much as 34,900 sq.m.



Automotive seals Automotive seals Automotive seals Automotive seals maker SaarGummi to maker SaarGummi to maker SaarGummi to maker SaarGummi to build plant in Tarnówbuild plant in Tarnówbuild plant in Tarnówbuild plant in Tarnów

Much to our dismay, we rarely get to report on new investments in the east of Poland, an area that badly needs more development. Hence, we were all the more pleased to learn about a major new project in Tarnów. SaarGummi, a Chinese-owned, Luxembourg-based producer of automotive sealing systems, has picked Tarnów for its first factory in Poland (and 13th global-ly). According to a letter of intent SaarGummi representa-tives inked earlier this month with the Tarnów Indus-trial Cluster (TKP), the project is to total approximate-ly PLN 55m and create 500 jobs, and it will take up some 7,600 sq.m of production and office space. TKP's Rafał Dzikowski said the SaarGummi invest-ment will be included in the Kraków Special economic zone, which grants the company with a range of incen-tives including tax breaks and job creation subsidies. Poland Today approached SaarGummi with questions about the investment, but company representatives chose to keep a lid on any further details. "SaarGummi intends to continue its strategy of inter-national growth, but it is too early today to reveal any additional information concerning our possible in-vestments in Eastern Europe," said Anja Lewer, Senior Marketing Manager at SaarGummi. SaarGummi is a major global manufacturer of sealing systems for the automotive industry. It boasts an esti-mated 20% share in the global marked for static and

dynamic seals. The company's core market is Europe and its key clients include Volkswagen BMW, Mer-cedes, Opel/GM and Porsche. Some of SaarGummi's innovative, high-tech products are also being used in the aerospace sector. The company operates world-wide out of 12 locations in Europe (Germany, Spain, Czech Republic, Russia and Slovakia), North and South America and Asia with a total of around 4,600 employees and turnover of EUR 386m. Since 2011 the SaarGummi Group has belonged to the Chinese state-owned corporation CQLT, a top-500 company in Chi-na.

BANKING & FINANCE

Consumer protection Consumer protection Consumer protection Consumer protection watchdog fines four watchdog fines four watchdog fines four watchdog fines four financial institutions financial institutions financial institutions financial institutions for unitfor unitfor unitfor unit----linked policieslinked policieslinked policieslinked policies

Poland's cartel prevention and consumer protection office UOKiK has imposed fines four financial institu-tions: life insurer Aegon TU na Życie, Idea Bank, financial broker Open Finance as well as Raiffeisen Bank Polska (formerly Polbank EFG) a combined PLN 50m for misleading customers with regard to cer-tain unit-linked life insurance products. The highest fine (PLN 23.4m) was placed on Aegon. "The severe fines we imposed on these four institu-tions correspond with the gravity of their infringe-ments. They are all the more justified, as we have not seen sufficient efforts on the part of those institutions to provide support to the clients who got mistreated. It shows a clear lack of integrity and signals that the self-regulation of the financial services sector is insuffi-cient," UOKiK's boss Adam Jasser said.

The watchdog had received a large number of con-sumer complaints relating to the so-called unit-linked life insurance (Polish: polisolokaty), a type of invest-ment product disguised as insurance to avoid the capi-tal gains tax. There are a number of issues with this type of investment product: the agreement is conclud-ed for many years, and customer savings are being in-vested in unit-linked insurance products, which may bring a profit after 10 or 15 years , but they may just as well bring a loss. Most consumers complained that those products had been presented to them as a standard deposit or short-term insurance. Many people concluding an agree-ment are not aware that they may lose their savings if they withdraw from it prematurely. Neither are they aware that the profit depends on the investment risk involved. UOKiK looked into sales procedures, correspondence as well as face to face and phone conversations be-tween salespeople and their clients, where it found ev-idence that the customer complaints had indeed been justified. Open Finance and Idea Bank were found guilty of failing to inform clients adequately about cer-tain features of the product (for instance the risk or the high contract termination fees). Aegon was acting inappropriately already during the duration of the contract, whereas Polbank EFG (unit of Greece's Eurobank EFG recently acquired by Austria's Raiffeisen) was engaging in forbidden practices at all stages. Overall, the consumer protection office received more than 600 complaints concerning unit-linked insurance products, while the insurance ombudsman received 1,200 of them last year alone. Many come from elderly clients who got talked into buying risky policies for 10-15 years. Polish banks and insurance companies have sold an estimated PLN 50bn worth of unit-linked in-surance products to-date.


ENERGY & RESOURCES

Polish PolPolish PolPolish PolPolish Polenergia seeks energia seeks energia seeks energia seeks to plug Ukraine into to plug Ukraine into to plug Ukraine into to plug Ukraine into Western Europe's Western Europe's Western Europe's Western Europe's gas gas gas gas supply supply supply supply networknetworknetworknetwork

Polish company Polenergia, controlled by billionaire Jan Kulczyk, seeks to build new gas interconnectors on Poland's borders with Germany and Ukraine thus opening up a gas imports route for its partner, Ukraine's Naftohaz. Polenergia and Naftohaz said they had been working on a joint concept since June. Last year Ukraine consumed 45bn cb.m of gas. Cur-rently the country is almost fully dependent on Rus-sian gas, which Moscow likes to use as a political card, as Ukraine lacks any other viable sources of the fuel. "Together we have come up with the idea for a West-East gas corridor that would connect Ukraine with the European gas transmission network. This would also mean new opportunities for the LNG terminal cur-rently under construction in Świnoujście, because the Ukrainians are interested in annual deliveries at the level of 8-10bn cb.m. This project would be beneficial to all parties involved," Polenergia's deputy CEO Radosław Dudziński said during the recent Baltic Business Forum. With total capital expenditures being estimated at EUR 440-460m, the investment is to include two new gas pipelines. The first one is to connect the German gas grid in the Berlin area with the Polish transmission system near Świnoujście, with an annual capacity of 5bn cb.m to Poland and 3bn cb.m to Germany. The other one, with a total length of 110km and annual ca-pacity of 8m cb.m (with an option for expansion to 10

cb.m per annum) would lead from the Polish town of Drozdowicze near the Ukrainian border to the Bil'che-Volitsa area near Lviv, where it would connect with the Naftohaz grid. Bil'che-Volitsa is also home under-ground caverns capable of storing up to 17bn cb.m of gas, which could potentially be used also to keep emergency supplies for Poland. According to Polenergia, a realistic completion date for the German-Poland pipeline is the end of 2018 or early 2019, whereas the Ukrainian section could be opened in 2019 or 2020. Since according to the Polish law the country's gas transmission system can be op-erated only by the state-run company Gaz-System, Polenergia said it was ready to pass the Polish section of its Poland-Germany pipeline onto the national grid operator. In order to secure financing for the investment, Polenergia and Naftohaz need to come up with a via-ble business case for the project, which will require long-term commitments from all parties interested in utilizing the new transmission capacities. Naftohaz's subsidiary Ukrtransgaz and Gaz-System are currently working on feasibility studies for the new intercon-nectors. Polenergia trades and distributes electricity and oper-ates a 116-megawatt heat and power plant in Nowa Sarzyna. The company also owns off-shore wind farm projects, and a plan for a coal-fired plant. Kulczyk is currently getting ready to merge Polenergia with the Warsaw-listed wind park operator Polish Energy Partners (PEP) to create Poland's largest privately-owned power utility. Back in July, a Chinese equity fund CEE Equity Partners, funded by the Export-Import Bank of China, agreed to acquire a PLN 240m stake in the business helping PEP finance construction of 380 MW of wind farms by 2016. In 2017-2022, PEP plans to build additional 500 MW of on-shore wind farms and 600 MW of off-shore farms on the Baltic

Sea, for which it wants to find a partner. The company may also sell its 1,800-MW, coal-fired power plant project Elektrownia Północ in 2016.

ENERGY & RESOURCES

Polish Elemental Polish Elemental Polish Elemental Polish Elemental Holding goes shopping Holding goes shopping Holding goes shopping Holding goes shopping in Slovakiain Slovakiain Slovakiain Slovakia

Only weeks after it agreed on an acquisition in Turkey (see BR+ No. 052), the Warsaw-listed metals recycling company Elemental Holding has taken over a 67% stake in Slovakian metals trader Metal Holding. The EUR 3.1m transaction is part of Elemental Holding's international expansion, which began in March with the acquisition of Lithuania's EMP Recycling. "We keep looking at potential acquisition targets along the Estonia-Turkey axis, or from southern to northern Europe," Krzysztof Szymański, spokesperson at Ele-mental Holding, told Poland Today last month. Elemental Holding carried out the transaction via its fully-owned subsidiary Collect Point. The new owner will seek to expand the range of services provided by the Slovakian company to include recycling of electrowaste and catalytic converters. With a modern processing plant in Tomaszów Ma-zowiecki in central Poland and a waste obtaining net-work spanning the entire country, Elemental Holding specializes in recycling of integrated circuits and printed circuit boards, processing of electrowaste, as well as recycling, transport and trading in non-ferrous metals and steel. It is one of the leading suppliers of non-ferrous metals to Polish foundries.


In March, the Polish company took over a controlling stake in Lithuania's EMP Recycling, which holds a 60% share in Lithuania's electrowaste, catalytic con-verter and non-ferrous metals recycling sector. Ele-mental Holding representatives said their goal is to reach a similar market position in the other two Baltic states, Latvia and Estonia. In September, the Polish firm agreed to acquired a 51% stake in Turkish peer Evciler for USD 11m. The transaction, which the Polish company will partially finance with proceeds from a new share issue, is to be sealed by mid-December. Elemental Holding turned over PLN 860m last year (down from PLN 895m in 2012) while its attributable net earnings topped PLN 24.4m (up from PLN 18.4m in 2012). The company has been listed on the Warsaw Stock Exchange since December 2013..

PROPERTY & CONSTRUCTION

Polish builders are Polish builders are Polish builders are Polish builders are slowly regaining slowly regaining slowly regaining slowly regaining foothold says Deloittefoothold says Deloittefoothold says Deloittefoothold says Deloitte

Poland's construction sector is slowly emerging from crisis, says consultancy Deloitte in a brand new report on the industry that was badly impacted by the 2011-2012 infrastructure boom, which left some of its larg-est players seeking bankruptcy protection. According to Deloitte, the combined revenues of the nine largest Warsaw-listed builders increased by 6% y/y totaling PLN 7.2bn in the first half of the year and were ac-companied by improving margins. The market capital-ization of the same nine firms rose by nearly 39% be-tween the end of 2012 and mid-2014.

Deloitte experts list the new EU financial perspective and Poland's continued underdevelopment in terms of infrastructure as the key drivers of growth for the sec-tor in the coming years. According to publicly availa-ble government strategies, Poland needs to invest an estimated PLN 500bn in infrastructure by 2020, a large chunk of which should end up being pocketed by building firms. The available funding earmarked for infrastructure projects by the EU is to reach EUR 24.3bn in the 2014-2020 period, but it will begin to trickle down to companies only after 2015. Investment activity will continue to focus on roads, railways, pow-er generation and environmental protection. The past years have been tough for Polish builders. Many companies struggled to complete loss-making infrastructure development contracts, finding little understanding on the part of their public clients. The number of projects have also been shrinking lately, as funding from the previous EU budget began to dry out. "The 6% revenue growth in 1H is not really a signifi-cant improvement, but combined with a 7.3% increase in construction and assembly activity in the same peri-od, it seems like the worst is most likely over for Polish builders," commented Maciej Krokosiński of Deloitte's Audit department, adding that the percentage of bank-ruptcies in the sector declined by 21% y/y overt the same period, giving even more reasons for optimism. Deloitte argues that the one underexplored area that could potentially generate more business for building firms are public-private partnerships (PPP). Despite much talk in the past decade about the PPP as a way to speed up municipal investments, only one in four of the PPP tenders announced in the 2009-2013 period led to the signing of a contract, of which many failed to secure financing. Moreover, most of the said projects were very small - worth no more than a few million złotys each. However, without sufficient knowledge and experience in the PPP formula among public offi-

cials as well as a workable way of combining PPP with EU funding, a breakthrough still seems like only a dis-tant possibility.

IT & TELECOMS

Cisco to double staff Cisco to double staff Cisco to double staff Cisco to double staff numbers at Kraków numbers at Kraków numbers at Kraków numbers at Kraków support centersupport centersupport centersupport center

US IT and telecommunications technology giant Cis-co seeks to double staff numbers at its support centre in Kraków, hoping to reach the 1,000 employee mark in the coming years. Launched two years ago, the cen-tre provides services to other Cisco units as well as ex-ternally, to clients. The Kraków centre is one of a number of global Cisco sites, which operate under the so-called “Follow the Sun” model to serve customers and partners on a 24/7 basis. This means that each region supports world-wide customers during the local business hours of the region and hand over critical issues at the end of their day to the next region to continue working with the customers for the following hours. Cisco is an American multinational corporation head-quartered in San Jose, California, that designs and sells networking and communications technology and services. With more than 74,000 employees world-wide, Cisco posted a net income of USD 7.85bn on USD 47.1bn turnover in the fiscal year ended July 2014. Cisco's current portfolio of products and ser-vices is focused upon three market segments – enter-prise and service provider, small business and the home.


Cisco Poland was established in 1995. Most of Cisco’s business is done in cooperation with partners, and in Poland the company has built an ecosystem of some 1,000 partners, including system integrators, IT dis-tributors and resellers. Its clients in Poland include service providers, enterprises, small and medium businesses as well as public sector institutions. The company is particularly proud of its Cisco Net-working Academy, a global education program that teaches students how to design, build, troubleshoot, and secure computer networks. Networking Academy provides online courses, interactive tools, and hands-on learning activities to help individuals prepare for ICT and networking careers in virtually every type of industry. Last year alone some 26,000 students in Po-land took part in Cisco Networking Academy courses. One of the latest Cisco initiatives in Poland, Polish City of the Future, which the company is implementing in cooperation with nine partners that include IBM, Philips, Samsung , Schneider Electric and Swarco, fo-cuses on solutions for smart cities.

Poland Today talks to: Norm DePeau, Vice President Global Services Delivery, Kraków Site Leader at Cisco Systems Photo: Cisco

• PT: Back in 2011 Cisco Poland general manager Dariusz Fabiszewski told me the Kraków Support Centre would "provide services externally to custom-

ers and partners, as well as internally within Cisco, across multiple functions including Cisco Services, Finance, Operations and others" focusing on the EMEA & Russia region. Have the competences and geographical footprint of the centre expanded since? Norm DePeau: Cisco Kraków now includes five major services disciplines. Our Global Business Services team provides business support services to Cisco’s business functions, while the Finance & Cisco Capital unit specializes in Finance functional services. Our Advanced Services team provides a wide range of ser-vices and business solutions to Cisco customers, who can also get technical service from our Technical Ser-vices and our Technical Assistance Centre. Finally, there is the Cloud and Managed Services unit that of-fers secure Cloud services to Cisco customers. Our site continues to grow above the rate at which we originally projected, and we remain confident that the value Cisco Kraków offers to our customers and Cisco’s internal functions will drive continued growth for the foreseeable future. Many of our services sup-port Cisco teams and customers both within the Europe, Middle East, Africa and Russia regions and in other regions around the globe. Our continued growth is a testament to the quality of employees we are able to hire in Krakow from top universities and from the local and regional labour markets.. • PT: What is the current headcount at the centre and what kind of specialists make up the biggest share of your Krakow staff? How many of them are non-Poles? NDP: We currently have over 500 Cisco employees at in our Kraków offices, and we are proud of the diver-sity that our workforce provides. While approxi-mately 70% of our employees are from Poland, we also have 34 other countries represented in our workforce. In meeting with the employees from other countries, I am reminded of the attractiveness of Kraków as a des-tination for top quality employees to relocate, raise

families, and have the opportunity to enjoy exciting careers with Cisco. Our workforce is made up of pro-fessionals with degrees in Engineering, Business and Finance, and includes a diverse experience base in these disciplines.

Employment at BPO/SSC centers in Poland

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

20

08

20

09

20

10

20

11

20

12

*20

13

*20

14

**20

15

Source: ABSL *) as of April **) projected year-end

• PT: It's been said that Cisco aims to double its staff numbers in Kraków. Over what time span? Will this growth come from any particular type of ser-vices/processes or across all of the centre's compe-tences? NDP: Our estimate for doubling the headcount in our Kraków offices is based upon a relatively conservative two-year outlook. We continue to forecast growth from all of the Services functions currently located in Krakow, as the Kraków site is considered a very stra-tegic location for Cisco as part of our global site strat-egy. We will most certainly see significant growth in our Cloud & Managed Services team, as Kraków’s new building, which will open in December, includes one of three global Network Operations Centers support-ing our Cloud Services customers, a major growth area for Cisco. While estimates of growth are subject to re-vision up or down, the outlook at the present time for Kraków remains very positive.


• PT: What sorts of talents are you recruiting in Kraków at the moment? NDP: We continue to need a wide range of talent in Business, Finance, and Technology. It is important to note that our growth in Kraków has been strong and steady since the site was launched two years ago. The steady growth is a sign of the long term commitment Cisco is making in Kraków. As teams located here con-tinue to demonstrate the value they provide in their respective organizations, we have seen a continued in-terest in placing more employees here. • PT: Have you secured office space to accommodate your future expansion? NDP: Of course! Cisco has a long term vision for our facilities in Kraków. We are just finishing the new building that many of our Technical Services, Ad-vanced Services, and Cloud & Managed Services team members will move into in January. We will continue to house employees in our existing offices and have plans for additional office space as needed to support our ongoing growth at our current site. • PT: One hears about large IT outsourcing projects in Kraków almost on a weekly basis. We are talking about thousands of IT jobs to be created in the city over the coming years. How is this affecting the local market? What have been Cisco's experiences in this respect? NDP: I truly believe that Cisco offers employees some-thing unique in the Kraków labor market. Employees who come to Kraków have the opportunity to join a fun and exciting team at a growing and highly strategic site. Cisco is world leader in networking infrastruc-ture, software, security and cloud services and has re-peatedly demonstrated the ability to succeed in the rapidly evolving technology marketplace. We have a vision to become the number one IT company in the world, and we are on a course to lead the market as the Internet of Things connects people and devices in new and exciting ways never before envisioned. Many

companies will see the value that the city of Kraków and the local workforce offers. Few will offer employ-ees truly exciting, rewarding, long-term careers. Cisco will offer employees all of this with a culture that re-wards development, collaboration, growth, diversity, and community service.

IT & TELECOMS

Railway giant PKP Railway giant PKP Railway giant PKP Railway giant PKP makes second attempt makes second attempt makes second attempt makes second attempt to sell telecoms unit to sell telecoms unit to sell telecoms unit to sell telecoms unit TK Telekom TK Telekom TK Telekom TK Telekom

Poland's state railways company PKP has invited in-vestors to bid on its telecommunications subsidiary TK Telekom. According to market estimates, the compa-ny, which runs a nationwide fiber optic network and provides data transfer services to telecom operators, may be worth some PLN 200m. TK Telekom posted net earnings of PLN 5.8m and EBITDA of PLN 40m on PLN 289m turnover last year. A portion of its revenues came from building con-tracts, which is a line of business that can be bought separately. This is PKP's second attempt at offloading TK Tele-kom in less than two years. The previous tender at-tracted GTS Poland, Netia, Exatel, as well as the consortium of Hawe and IT Polpager (the latter be-ing linked to Polish billionaire Zygmunt Solorz-Żak, owner of the Cyfrowy Polsat DTH provider and Plus mobile network). Following exclusive negotia-tions with a number of parties, PKP gave up on the sale, saying none of the offers had been attractive enough.

This time, the list of potential investors is likely to fea-ture Netia and possibly also Exatel, the telecoms unit of Poland's energy utility PGE, whose business has re-lied to a large extent on TK Telekom's infrastructure. Interested parties may submit their bids by November 19, 2014.

START-UPS

Polish ePolish ePolish ePolish e----learning site learning site learning site learning site Brainly raises USD 9m Brainly raises USD 9m Brainly raises USD 9m Brainly raises USD 9m financing, opens office financing, opens office financing, opens office financing, opens office in New York Cityin New York Cityin New York Cityin New York City

Polish social learning network Brainly has raised USD 9m in new venture funding this October and plans to use the resources to expand in the US. The round (a second one for Brainly which had raised USD 0.5m worth of seed funding back in 2012) was led by Gen-eral Catalyst Partners, and includes existing inves-tor Point Nine Capital and new investors Runa Capital and Learn Capital, Brainly said. Founded in 2009 in Poland, where it enjoyed tremen-dous success, Brainly is a social network for students asking and answering questions specifically about homework. It works like a message board where users pose questions at an average of 8,000 per hour. Brainly has since expanded into 35 additional countries throughout Europe, South America, and Asia, includ-ing Russia, Indonesia, and Brazil. Each month, more than 30 million people around the globe visit Brainly’s websites to seek homework help. Headquartered in Kraków, Brainly has recently opened an office in the New York City to speed up its expansion in the United States. Currently only some


0.5m of the site's 30m monthly visitors are from the US, which, according to Brainly founder Michał Borkowski, makes it a very promising market for the service. Although the company is looking for a US -based executive team, Borkowski will remain Brainly's CEO.

Brainly.com, which was created in Poland as Zadane.pl, has big plans for the US market Photo: Brainly

To use Brainly, registered users post homework ques-tions and problems to the site, and in return, other us-ers post answers to the questions. By helping other students answer questions, users earn points, which then allow them to ask their own questions, creating a natural cycle of help and engagement. Brainly also has a volunteer "quality assurance" team of 450 modera-tors, mostly students, who continuously scan the site for inappropriate or poor quality responses. "Every student in the world eventually becomes stuck on a homework problem, causing frustration and loss of confidence," said Michal Borkowski, CEO of Brainly. "Our vision is to help students become un-stuck by turning homework into an opportunity to in-spire learning and collaboration. With this funding, we will be able to accelerate this vision by bringing new expertise to our team, reinventing the next generation of our product, and expanding Brainly to new geogra-phies." Future plans include premium membership as an ad-ditional source of revenue for Brainly, which currently makes money on ads.

"With its large and fast-growing user base, global rele-vance, and vision to inspire a generation of students, Brainly is building a standout community and brand in the edtech space," said Nitesh Banta of General Cata-lyst, who joins Brainly's board alongside his colleague Adam Valkin. "hey are taking a common offline behav-ior – homework help and collaboration – and moving it online, achieving all the efficiencies and benefits we see in other industries and democratizing access to af-terschool learning," he adds. General Catalyst Partners is a venture capital firm that makes early stage and growth equity investments. Their past investments include such online hits as Airbnb and Snapchat.

Poland Today talks to: Jakub Piwnik, PR & Marketing Man-ager at Brainly • PT: Brainly is present in 35 markets but your first foreign office was launched in New York. Why there and why is being physically present in the US so im-portant for Brainly? Jakub Piwnik: There are a couple of factors to this. Firstly, New York is simply a great place to be running a start-up from. Also for time zone reasons, it's a good place for managing business in the other hemisphere. At the same time, the US is a priority market for us and this is where our investors come from. • PT: How about the funding Brainly has raised, what exactly will you spend it on? JP: We already have a number of specific goals, mainly the opening of the US office and acquisition of the best talent there, as well as further international expansion. Aside from that, we intend to focus on recruiting staff for our Kraków office. It is extremely important for us to be providing a top quality product, which requires the best available IT and mobile technology profes-

sionals. Currently Brainly employs a few dozen staff and our team continues to grow. • PT: What is Brainly's key source of revenue and do you intend to introduce additional revenue streams? JP: At the moment our top priority is product devel-opment and international expansion. The funding we acquired will enable us to focus on these things. Of course, we are considering monetization but it's still too early for that. However, it will never be our inten-tion to generate revenues by introducing fees for users.

TRANSPORT & LOGISTICS

Maltese firm Mariner Maltese firm Mariner Maltese firm Mariner Maltese firm Mariner Capital neCapital neCapital neCapital negotiatinggotiatinggotiatinggotiating acquisition of Port of acquisition of Port of acquisition of Port of acquisition of Port of Gdańsk's stevedoring Gdańsk's stevedoring Gdańsk's stevedoring Gdańsk's stevedoring subsidiarysubsidiarysubsidiarysubsidiary

The Port of Gdańsk Authority has granted the Malta-based Mariner Capital exclusivity is negotiations concerning the sale of Port Gdański Ekspolatacja (Port of Gdańsk Cargo Logistics), the port's stevedor-ing subsidiary. In total five bidders had placed pur-chase offers on the company, including a consortium of PKP Cargo and Węglokoks. PGE is the last remaining Port of Gdańsk subsidiary that is yet to privatized, although several attempts at its sale have already been made. The company pro-vides cargo handling and storage services in the so called inner port (along eight quays situated on both banks of Martwa Wisła river and the Port Canal). It is also the exclusive provider of handling services in the Gdańsk Container Terminal and the port's Duty Free Zone. The total length of its operational quays, all of


which have good road and rail access, is 5km. Its oper-ations cover an area of some 90ha in the Port of Gdańsk. With a staff of approximately 500 people, PGE handles some 3.5-4m tons of cargo per annum, mainly bulk commodities such as coal, coke and grain. It has the capability to serve all types of terminals that currently operate in the Port of Gdańsk (handling bulk goods, containers, cars, and grain except for crude oil.

PGE handles all types of cargo, except for liquid fuel. Photo: Port Gdański Eksploatacja

Mariner Capital owns container terminals in Riga (Latvia), Venice (Italy), and Durres (Albania). The company specializes in development, and management of marine terminals and logistics services. The Port of Gdańsk Authority manages an area of some 700ha that is home to the Deepwater Container Terminal (DCT), as well as coal, liquid fuels, and LPG terminals, among other businesses. The port is well connected with the A1 highway that links Gdańsk with the rest of the country.

RETAIL PROPERTIES

Belgian Belgian Belgian Belgian rrrreal estateeal estateeal estateeal estate firm firm firm firm Mitiska REIM Mitiska REIM Mitiska REIM Mitiska REIM joins joins joins joins forces with Warsaw's forces with Warsaw's forces with Warsaw's forces with Warsaw's Peppercorn Properties Peppercorn Properties Peppercorn Properties Peppercorn Properties to invest in Polish to invest in Polish to invest in Polish to invest in Polish retail parksretail parksretail parksretail parks

Belgian real estate investment firm Mitiska REIM has teamed up with a Warsaw-based developer and man-ager Peppercorn Properties to build a portfolio of 10-15 retail parks in Poland over the next five years. The first two assets in the portfolio are two small retail parks in the Polish towns of Andrychów and Stalowa Wola, which the Belgians acquired last week from Polish builder P.A. Nova for PLN 17.2m. P.A. Nova, a listed Polish construction firm and property develop-er, will use the proceeds to finance the completion of its other ongoing projects, including the Galeria Gale-na shopping mall in Jaworzno, the company said in a communiqué. Completed three years ago, the Stalowa Wola retail park has a GLA of 2,700 sq.m, while the Andrychów project, opened in 208, offers 2,700 sq.m of lettable re-tail space. Both retail centers are very well located in their relevant catchment areas and benefit from the strong footfall generated by Kaufland. Both properties are 100% let with long-term lease agreement to well-know and reputable tenants as Jysk, Pepco, Takko, Deichmann, Empik, RTV euro AGD, Rossmann, Textil Market, etc. Mitiska REIM has also acquired an option to purchase a third property from P.A. Nova - a Kaufland-anchored project in Myszków, which like-wise is 100% let.

"After successful previous transactions in Romania and Serbia, the acquisition of these well-performing retail parks formally marks our entry in yet another new market. Equally it is the beginning of a promising partnership with our country partner for Poland, Pep-percorn Properties. We have strongly appreciated the efforts of Darren Haines-Powell and his team at Pep-percorn Properties that lead to the completion of this purchase. We eagerly look forward to working and growing together in the years to come. As we strive to be in other countries as well, together with Pepper-corn we hope to be an expansion platform for our val-ued retail partners in Poland. We plan to build a port-folio of approx. 10-15 retail parks in Poland in the next five years,” said Axel Despriet, CEO at Mitiska REIM.

One of the first Polish retail parks in Mitiska REIM's portfolio. Photo: Mitiska REIM

Mitiska REIM is a Brussels-based real estate invest-ment management company, which manages the EUR 200m specialist real estate fund "First Retail Interna-tional" (FRI) targeting retail park properties in Eu-rope. FRI’s current portfolio represents a total invest-ment value of EUR 100m. For investments outside of


Belgium, Mitiska REIM establishes partnerships with experienced local country partners, such as Pepper-corn in Poland, Poseidon Group in Serbia and Al-pha Property Development in Romania. Led by Darren Haines-Powell, the Warsaw-based Peppercorn Properties specializes in the development and management of retail parks and convenience retail centers in all parts of Poland. The company is current-ly working on a convenience centre in Wałbrzych in the south west of Poland. Peppercorn obtained a building permit for the Piaskowa Góra Arcade in Wałbrzych last year and the scheme is currently under construction with a sched-uled opening in Q2 2015. Located by a main street leading to the center of Wałbrzych, an industrial city in the south west of Poland, next to an existing OBI DIY superstore, Piaskowa Góra will include 10 retail units with a combined lettable space of 4,000 sq.m and 150 parking spaces. The centre's anchor tenant will be the discount grocery Biedronka and will also include a medical centre and fitness club. According to Pepper-corn, more than 35,000 people live within a 5-drive from the site. "We are very happy to complete these first acquisi-tions in Poland with Mitiska REIM and look forward to extending the portfolio with further acquisitions and developments in line with a very detailed strategy that Mitiska have developed for FRI," says Darren Haines-Powell, Managing Director at Peppercorn Properties. "We have already entered into negotiations for the acquisition of more existing retail parks and land for the development of similar parks and continue to look for further opportunities to develop or acquire properties."

RETAIL PROPERTIES

Poland's modern retail Poland's modern retail Poland's modern retail Poland's modern retail stock increases by 0.3m stock increases by 0.3m stock increases by 0.3m stock increases by 0.3m sq.m sq.m sq.m sq.m in Q1in Q1in Q1in Q1----Q3 2014Q3 2014Q3 2014Q3 2014

An estimated 340,000 sq.m of new retail space was de-livered to the Polish market in the first nine months of the year, including 265,000 sq.m in shopping centers, according to figures published by the real estate con-sultancy JLL. In Q3 alone, developers completed 75,100 sq.m, the bulk of which was in two projects in the north east of the country: Galeria Warmińska in Olsztyn (41,000 sq.m), and Brama Mazur in Ełk (17,250 sq.m). The remaining large schemes completed in July-September were two retail parks in Nowa Sól and Ketrzyn with a combined GLA of 11,100 sq.m. JLL reports that a further 814,500 sq.m of retail stock is currently under construction, in shopping malls, re-tail parks and outlet centres. Shopping centres account for more than 700,000 sq.m in 32 projects (including nine extensions). Approximately 80,000 sq m of new floor space in shopping centres is expected to hit the market this year (total of ca. 345,000 sq.m in 2014), with over 480,000 sq.m to be completed in 2015. In addition, 12 retail parks, with approximately 70,000 sq.m of space, are being developed, with the majority of them in cities of below 200,000 inhabitants. In the outlet centre segment two new projects are under de-velopment, both by Polish company ADV Por Property Investment, in Lublin and Białystok. The latter may get a second outlet center in the place of the former Galeria Podlaska mall. As far aas extensions aere con-cerned, Spain's Neinver is adding more space to its Factory Ursus Outlet in Warsaw.

"Retail chains in Poland are believed to be in good condition and the country remains an attractive mar-ket for further expansion. The last three months have become busy for both new market entrants and those already present on the market. Brands already present on the market are actively, albeit selectively, expand-ing. All potential locations are still being carefully ex-amined. Unsurprisingly, prime assets located in the main metropolitan areas attract most retailer demand. Landlords of centers, which are perceived as second-ary by market stakeholders, or those located in very competitive markets, are facing downward pressures on rents and high expectations from tenants with re-gard to fit-out contributions," said Marta Augustyn, Associate Director, Retail Agency, JLL.

DATA BOX Total retail supply in Poland stands at 12.2 million sq m

of GLA, including 8.76 million sq.m of shopping centre

stock in 376 projects. At present, the shopping centre

density in Poland stands at 227 sq.m / 1,000 inhabit-

ants and will increase to 245 sq.m after the completion

of the stock currently in construction stages. This ex-

ceeds the European average of 196 sq.m; however, it is

still lower than Western European average of 260

sq.m.

Q3 newcomers in the fashion segment included three French brands (Devred 1902, Sinequanone and Undiz); an Italian chain, Eye Sport, and Fullah Sugah from Greece. Kiehl’s Since 1851 from the USA and Ital-ian Kiko Milano debuted in the health & beauty sector, while in electronics, Apple opened Poland's first Apple Shop at Media Markt Okęcie in Warsaw. The number of hypermarket operators has dropped from five to four following the acquisition of Real stores by France's Auchan, and all grocery retailers are actively seeking new formats in order to keep up with chang-ing customer expectations. In the home improvement


sector, Swiss strategic investor Papag bought 24 Praktiker DIY stores at the beginning of the year, and 14 Nomi stores have recently joined the Bricomarche chain. Prime shopping centre rents remain the highest in Warsaw (peaking at EUR 105/ sq.m /month) and they are expected to remain stable across the country in the short to mid-term. At the end of H1 2014, the average shopping centre vacancy rate in major agglomerations stood at 2.8%, down by 0.4 percentage points when compared to the end of 2013.

RETAIL

Retail sales see weak Retail sales see weak Retail sales see weak Retail sales see weak growth in Septembergrowth in Septembergrowth in Septembergrowth in September;;;; eeeeconoconoconoconomists mists mists mists blame blame blame blame warm weawarm weawarm weawarm weatherthertherther

Polish retail sales rose at an annual rate of 1.6% in Sep-tember, on a 0.9% monthly decrease, the Central Sta-tistical Office (GUS) said last week. The analyst survey by PAP Polish news agency had shown consensus ex-pectations for annual growth of 2.4% and a monthly decline of 0.1%. In real terms, Polish retail sales were up by 3.0% year on year in September after a 2.8% y/y increase in August, GUS added. "Retail sales growth disappointed in September, slow-ing to 1.6%y/y. The poor result was mainly driven by the weak performance of clothing and footwear and this might have been due to exceptionally good weath-er last month, which postponed a switch from summer to autumn clothes. Meanwhile, data on the unem-ployment indicate that the positive trends in the labor market strengthened again, which should support the

private consumption in the second half of the year. On the other hand, one may worry how sustainable this improvement is amid decelerating external demand leading to weaker performance of the manufacturing," BZ WBK economists commented on the news. According to GUS, Poland's registered unemployment in September stood at 11.5%

Retail sales in Poland (y/y)

-5%

0%

5%

10%

15%

Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14

Source: GUS

FOOD

Kellogg Kellogg Kellogg Kellogg reveals reveals reveals reveals bbbback ack ack ack story ofstory ofstory ofstory of Kutno Kutno Kutno Kutno pppprojectrojectrojectroject

In the last issue of BR+ we ran a story about the brand new Kellogg factory in Poland, which has been turn-ing out the popular Pringles-branded savory snacks since June 2014. Next year the US-owned food giant will launch a second production line at the plant, dou-

bling the latter's output and raising staff numbers to 200. Kutno is one of two Kellogg sites in Europe (the other one being Mechelen, Belgium) where Pringles are made. Since the story went online, we have been contacted by Rupert Maitland-Titterton from Kellogg's Europe-an head office in Manchester, who contributed some additional information about the project.

Poland Today talks to: Rupert Maitland-Titterton, Senior Director, Corporate Communica-tions, Public Affairs & Sustainability, Europe at Kellogg Company • PT: Kellogg began the Kutno project back in 2007, as far as I know with a different type of production in mind. The plant (15,000 sq.m) stood idle for a couple of years until work restarted in 2013. Is it therefore fair to say that the whole project was completed in 13 months? Rupert Maitland-Titterton: In 2009 Kellogg built a manufacturing facility at Kutno, which was designed to produce cereal. Because of the decline in cereal consumption which we have seen across Europe in the last few years, we did not require the additional capac-ity in our cereal supply chain network that we had previously forecasted. For this reason, cereal manufac-ture at Kutno did not start up. Following the acquisi-tion of Pringles by Kellogg in 2012, it was clear that we needed additional manufacturing capacity for Pringles to help support our snacks strategy. It made sense to use some of the infrastructure that we had already built at Kutno for this purpose. However, it still re-quired extensive construction and considerable in-vestment to create the state of the art Pringles facility that we have ay Kutno today.


• PT: In early 2013 the Łódz Special Economic Zone said Kellogg's SPV UMA had promised to invest "a further PLN 225.8m" (approx. EUR 55m) at the site. Now that the plant is up and running, could you give us a final estimate of the total CAPEX that went into the Kutno project? • RMT: Our investment in Kutno is one of the biggest capital investments made by Kellogg in the past ten years globally. I’m afraid I can’t share detailed finan-cial information.

KELLOGG COMPANY Kellogg is the world’s leading producer of snacks, ce-

reals and frozen foods. The company was founded in

Battle Creek, Michigan more than 100 years ago by

William Keith Kellogg. The NYSE-listed company has

approximately 31,000 employees at 50+ manufactur-

ing facilities in 18 countries around the world. Its 2013

Kellogg's net sales totaled USD 14.8bn, while its net

earnings topped USD 1.8bn. Kellogg acquired the

Pringles business in 2012 from P&G for USD 2.7bn, be-

coming the world's second largest savor snack maker.

• PT: Are you sourcing raw materials locally or im-porting them? • RMT: We always look for opportunities to source raw materials locally where possible. We currently have suppliers in Slovakia, Hungary and Czech Repub-lic serving our Kutno manufacturing site. Our packag-ing manufacturer, Sonoco, has a plant at Kutno dedi-cated to producing Pringles cans, while DSSmith – who are also located close to our plant – provide cor-rugated packaging material. • PT: Based on the production figures Kellogg pro-vided (15m cans of Pringles in 4 months) one can es-timate the annual capacity of the plant at some 45-50m cans. Is it going to double with the launch of the

second production line? How many cans of Pringles a year are you selling in Europe at the moment? • RMT: I’m afraid we can’t share this sort of commer-cial information. However, what I can say is that Prin-gles continues to grow from strength to strength in the EMEA region. This additional capacity at Kutno will help us further drive the brand across the region.

POLITICS

Top politician makes Top politician makes Top politician makes Top politician makes explosive claims about explosive claims about explosive claims about explosive claims about Russia and UkraineRussia and UkraineRussia and UkraineRussia and Ukraine

Radosław Sikorski, former foreign minister and cur-rently speaker of Poland’s lower house of parliament, landed in hot water last week for some statements he made in an interview with US website Politico. In it he is quoted as asserting that Russian President Vladimir Putin offered to split Ukraine between Russia and Po-land during a 2008 meeting with then-Prime Minister Donald Tusk. According to the story, Putin said that Ukraine’s eastern regions would become Russian, while the western regions would go to Poland. That such an offer might have been made is hardly surprising. Mr Putin has been quoted on several occa-sions as calling Ukraine an “artificial” country – in 2008 he told US President George W. Bush that Ukraine isn’t “a real country”. Earlier this year, the deputy speaker of Russia's Duma, Vladimir Zhirinovsky, sent a letter to Western leaders offering much the same arrangement as Sikorski said Putin of-fered Tusk. Nevertheless, the seeming revelation that the presi-dent of Russia himself had made an outright offer to split up a sovereign nation 19th-century style was an

explosive one, and one that had the potential to knock the current government’s careful movements toward reconciliation with Moscow off course. The revelation was only “seemingly” made, however, because Mr Sikorski has now completely retracted his statements, saying his memory “failed” him and admit-ting that he was not at the meeting between Tusk and Putin. He now says such an offer was never made and that the February 2008 visit to Moscow included no one-on-one meeting between Mr Tusk and Mr Putin. Whatever his motives, the story has been a huge em-barrassment for Sikorski, an Oxford graduate and for-mer reporter, who served seven years as foreign minis-ter and who is anything but a newcomer to the world of international politics and media. Due to his cosmo-politan credentials, Sikorski’s name is often brought up when Poland submits candidates for top interna-tional jobs. Despite calls by the opposition for his dismissal and fury among his own party colleagues, it looks like Sikorski will keep his job as speaker of the Sejm. How-ever, Sikorski’s ambitions are considered to be much higher. Many have seen Sikorski as the future presi-dent of Poland, Europe’s top diplomat or NATO boss. However, with the recent blunder, the former foreign minister has thrown his credibility out the window, at the same time casting a shadow of doubt over Poland’s legitimate concerns about Russia’s actions in Ukraine.


OPINION

Quote authorisation Quote authorisation Quote authorisation Quote authorisation and press freedoand press freedoand press freedoand press freedommmm

by Poland Today Editor Andrew Kureth

Last week there was one story that dominated the news. Radosław Sikorski, former foreign minister and currently speaker of Poland’s lower house of parlia-ment, made some statements in an interview with a US website that he wished he hadn’t. The story was pub-lished, resulting in a full-blown international incident. Mr Sikorski later retracted his remarks, but he con-tends they never would have been published if he had been offered “authorisation” of his quotes.

Quote authorisation is a practise by which a journalist submits quotes to a source for the source to review, correct and change as necessary. In Poland, journalists are legally required to offer authorisation if the source requests it. While some see this as a holdover from communist times where censorship was the norm, the practise is common throughout Europe. In the United States, it is virtually unheard of. That someone would be allowed to change things they said on record is anathema, and for good reason. Public figures – and politicians especially – know very well what they are doing when they give statements to the press. This goes doubly for Mr Sikorski, who is a former journalist

himself and is married to a prominent Washington Post columnist. To retract or redact comments before publication is a waste of both the journalist’s and the source’s time, not to mention a detriment to the reader – for whom all of this is being done in the first place. Readers de-serve to know the whole story, and that is what jour-nalists want to tell. But too often, especially in Poland, this practise is used to water down important information, or worse, crow-bar in things that were never said – usually promo-tional material or statements intended to make the source look good. This never gives any service to the reader, and always hurts the quality of the reporting, which reflects badly on the newspaper, magazine or website in question (quote approval rules generally don’t apply for radio and television, where the quotes are recorded and cannot be easily changed). I can recount numerous times over my career where quote approval has ruined a genuinely good story. This is particularly the case with face-to-face interviews. Just this year, I interviewed a prominent businessper-son. As requested, I sent the quotes back for approval. The source sent back minor corrections – a few changes to facts that they had misremembered, but nothing that affected the story materially. But then I was required to send the interview to the company’s press agency. Entire sentences were struck out (of course those that were most interesting) and words were changed to make some of the phrasing seem less harsh. When I called up the press agency to argue over the changes, I was told that the information in my inter-view had not yet been revealed to a particular stock market, and could therefore result in legal trouble for the firm. “See how difficult my job is?” complained the press agency representative. I wanted to tell her that it

would be far less difficult if she spent more time train-ing her client what to say in interviews before they happened, rather than checking for legal missteps af-ter the fact. Polish law does not require the press to print such in-terviews – if you don’t like the changes, you don’t have to publish the story. But press agencies know the game: they will often hold the quotes until just before press time, forcing editors to either run the piece or scramble for content at deadline. Also, in this difficult market for media, newspapers are loath to anger po-tential clients or powerful figures. Even though Polish law says journalists can publish the unauthorised quotes if there is recorded proof that the words were said, doing so would put that newspaper on a blacklist, ensuring advertisers would stay away. Poles often say they wish their country had Western levels of community engagement – one simple way to help that along would be to abolish its rules on quote authorisation. Poland currently ranks 19th in Report-ers Without Borders’ Press Freedom Index. While that is impressive, Poland still lags behind regional neighbours such as the Czech Republic (13) and Esto-nia (11), as well as many Western European countries which it aspires to emulate such as Germany (14), Sweden (10) and Finland (1). Admittedly, Poland scores far above the United States (45), but restrictive laws put in place after the 9/11 tragedy overshadow that country’s admirable culture for eschewing any sort of quote approval. The unhindered ability of journalists to inform is a key element of keeping societies thriving and free. Quote authorisation rules only help vested interests obfus-cate the truth and are detrimental to media culture. While I understand the desire of politicians and busi-nesspeople to send a honed, sterile message to the public, we ought to hold them responsible for what they tell journalists. Polish society can only benefit.


KEY STATISTICS

Consumer PricesConsumer PricesConsumer PricesConsumer Prices

Data in (%) Jun '14 Jul '14 Aug '14 Sep '14

Sector y/y m/m y/y y/y m/m y/y y/y m/m

Food & bev -0.9 -0.3 -1.7 -1.1 -2.1 -1.6 -2,0 +0.1

Alcohol, tobacco +4.0 +0.1 +4.0 0.0 +3.8 0.0 +3.6 0.0

Clothing, shoes -4.7 -0.8 -4.9 -2.8 -5.1 -2.7 -4.7 +1.1

Housing +1.6 -0.1 +0.6 0.0 +0.6 +0.1 +0.5 +0.1

Transport -0.6 -0.2 -1.0 +0.8 -1.5 0.0 -3.2 -1.0

Communications +1.3 +2.4 +2.6 +1.2 +3.9 +1.3 +4.0 0.0

Gross CPI +0.3 0.0 -0.2 -0.2 -0.3 -0.4 -0.3 0.0

IIIInflationnflationnflationnflation

-1%

0%

1%

2%

3%

4%

Sep 12

Nov 12

Jan 13

Mar 13

May 13

Jul 13

Sep 13

Nov 13

Jan 14

Mar 14

May 14

Jul 14

Sep 14

y/y m/m

Retail TurnoverRetail TurnoverRetail TurnoverRetail Turnover

Month May '14 Jun '14 Jul '14 Aug '14 Sep '14

m/m (%) -2.7 -1.1 +4.7 -1.1 -0.9

y/y (%) +3.8 +1.2 +2.1 +1.7 +1.6

Year 2009 2010 2011 2012 2013

Turnover in PLNbn 582.8 593.0 646.1 676.0 685.7

y/y (%) +4.3 +5.5 +11.6 +5.6 +2.3

Residential ConstructionResidential ConstructionResidential ConstructionResidential Construction

Dwellings

(in '000 units)

2009 2010 2011 2012 2013 Jan-Sep

2014

y/y

(%)

Permits 178.8 174.9 184.1 165.1 138.7 120.3 +14.8

Commenced 142.9 158.1 162.2 141.8 127.4 114.6 +17.0

U. construction 670.3 692.7 723.0 713.1 694.0 709.4 +0.1

Completed 160.0 135.7 131.7 152.5 146.1 100.1 -2.9

Source: Central Statistical Office (GUS)

GGGGross Domestic Productross Domestic Productross Domestic Productross Domestic Product (ESA2010)

Period Growth y/y unadjusted

GDP in PLN bn current prices

Current account def. in % of GDP

Q2 2014 +3.3% 413,457 -1.2%

Q1 2014 +3.4% 397,429 -1.2%

Q4 2013 +2.7% 455,528 -1.3%

Q3 2013 +2.0% 405,554 -1.9%

2013 +1.7% 1,662,052 -1.3%

2012 +1.8% 1,615,894 -3.6%

2011 +4.8% 1,553,582 -5.0%

2010 +3.7% 1,437,357 -5.1%

Key Economic Data & ProjectionsKey Economic Data & ProjectionsKey Economic Data & ProjectionsKey Economic Data & Projections

Indicator 2011 2012 2013 *2014 *2015

GDP change +4.5% +1.9% +1.6% +3.1% +3.1%

Consumer inflation +4.3% +3.7% +0.9% +0.1% +0.8%

Producer inflation +7.6% +3.4% -1.3% -1.1% +0.9%

CA balance, % of GDP -5.0% -3.7% -1.4% -1.7% -2.6%

Nominal gross wage +5.2% +3.7% +3.4% +3.5% +4.1%

Unemployment** 12.5% 13.4% 13.4% 11.8% 11.5%

EUR/PLN 4.12 4.19 4.20 4.17 4.09

Sources: NBP, BZ WBK, PKO BP, GUS *) projections **) year-end

GrossGrossGrossGross WagesWagesWagesWages A: avg monthly wages in PLN B: indexed avg wages, 100=2005

Sector Q3 2013 Q4 2013 Q1 2014 Q2 2014

A B A B A B A B

Coal mining 6,061 138 8,615 196 6,333 144 6,382 145

Manufacturing 3,625 158 3,690 161 3,663 160 3,743 163

Energy 6,021 183 6,736 205 6,358 193 6,020 183

Construction 3,766 160 3,895 166 3,706 158 3,884 166

Retail & repairs 3,408 145 3,456 147 3,544 151 3,577 153

Transportation 3,589 127 3,913 138 3,666 130 3,650 129

IT, telecoms 6,654 173 6,695 174 6,987 181 6,835 177

Financial sector 6,109 137 6,602 148 6,747 152 6,738 151

National average 3,652 145 3,823 152 3,895 155 3,740 149


Construction OutputConstruction OutputConstruction OutputConstruction Output

Month Mar '14 Apr '14 May '14 Jun '14 Jul '14 Aug '14 Sep '14

m/m (%) +24.2 +3.2 +14.0 +16.9 +0.9 -5.4 +19.8

y/y (%) +17.4 +12.2 +10.0 +8.0 +1.1 -3.6 +5.6

Year 2007 2008 2009 2010 2011 2012 2013

y/y (%) +15.5 +12.1 +5.1 +4.6 +11.8 -0.6 -12.0

Source: The Central Statistical Office of Poland, GUS

Sentiment IndicatorsSentiment IndicatorsSentiment IndicatorsSentiment Indicators

Economic sentiment and consumer confidence indicators

-40

-20

0

20

Dec 11

Mar 12

Jun 12

Sep 12

Dec 12

Mar 13

Jun 13

Sep 13

Dec 13

Mar 14

Jun 14

Sep 14

60

80

100

120 Consumer confidence (le ft axis)

Economic sentiment (right axis)

The economic sentiment (1990-2010 average = 100) is a composite made up of 5 sectoral confidence indicators, which are arithmetic means of seasonally adjusted balances of answers to a selection of questions closely related to the reference variable. Source: Eurostat

Producer PricesProducer PricesProducer PricesProducer Prices

Month Mar'14 Apr'14 May'14 Jun'14 Jul'14 Aug'14 Sep'14

m/m (%) -0.2 -0.2 -0.2 -0.1 -0.1 +0.3 +0.1

y/y (%) -1.3 -0.7 -1.0 -1.8 -2.1 -1.5 -1.6

Year 2007 2008 2009 2010 2011 2012 2013

y/y (%) +2.0 +2.2 +3.4 +2.1 +7.6 +3.3 -1.3

Construction PricesConstruction PricesConstruction PricesConstruction Prices

Month Mar'14 Apr'14 May'14 Jun'14 Jul'14 Aug'14 Sep'14

m/m (%) -0.2 -0.1 -0.1 0.0 0.0 0.0 0.0

y/y (%) -1.6 -1.5 -1.5 -1.4 -1.2 -0.9 -0.8

Year 2007 2008 2009 2010 2011 2012 2013

y/y (%) +7.4 +4.8 +0.2 -0.1 +1.0 +0.2 -1.8

IndustIndustIndustIndustrial Outputrial Outputrial Outputrial Output

Month Mar '14 Apr '14 May '14 Jun '14 Jul '14 Aug '14 Sep'14

m/m (%) +9.4 -2.3 -1.7 -0.1 +2.0 -8.5 +16.5

y/y (%) +5.4 +5.4 +4.4 +1.7 +2.3 -1.9 +4.2

Year 2007 2008 2009 2010 2011 2012 2013

y/y (%) +10.7 +3.6 -3.5 +9.8 +7.7 +1.0 +2.2


TTTTraderaderaderade

Poland exports and imports according to commodity groups, according to SITC classification

EXPORTS in PLN bn IMPORTS in PLN bn

Jan-Aug

2014 y/y (%)

share (%)

2013 share (%)

Jan-Aug 2014

y/y (%)

share (%)

2013 share (%)

Food and live animals 47,583 +4.7 10.8 69,304 10.9 32,301 +4.4 7.3 47,906 7.4

Beverages and tobacco 6,653 +17.4 1.5 8,624 1.4 2,752 +4.9 0.6 4,150 0.6

Crude materials except fuels 11,094 +2.8 2.5 15,744 2.5 14,207 -1.9 3.2 21,585 3.3

Fuels etc 18,587 -6.2 4.2 30,013 4.7 49,238 +1.1 11.1 75,539 11.7

Animal and vegetable oils 1,303 +6.8 0.3 1,864 0.2 1,746 -0.9 0.4 2,646 0.4

Chemical products 40,967 +4.2 9.3 59,103 9.3 66,751 +6.5 15.0 92,917 14.3

Manufactured goods by material 88,764 +2.3 20.1 129,915 20.3 79,720 +7.0 17.9 112,392 17.3

Machinery, transport equip. 166,823 +5.4 37.8 239,434 37.5 146,209 +3.1 32.8 216,608 33.4

Other manufactured articles 59,131 +10.3 13.4 82,816 13.0 43,864 +15.2 9.8 58,210 9.0

Not classified 597 n/a 0.1 1,782 0.2 8,838 n/a 1.9 16,242 2.6

TOTAL 441,502 +4.6 100 638,599 100 445,626 +4.4 100 648,195 100

Poland's ten largest trading partners, ranked according to 2013

EXPORTS in PLNbn IMPORTS in PLN bn

No Country Jan-Aug

2014 share 2013 share No Country

Jan-Aug 2014

share 2013 share

1 Germany 114,332 25.9% 162,548 25.1% 1 Germany 96,855 21.7% 142,161 21.7%

2 UK 28,057 6.4% 42,138 6.5% 2 Russia 50,762 11.4% 79,578 12.1%

3 Czech Rep. 27,311 6.2% 40,110 6.2% 3 China 44,877 10.1% 61,127 9.3%

4 France 24,906 5.6% 36,367 5.6% 4 Italy 23,545 5.3% 34,940 5.3%

5 Russia 19,751 4.5% 34,069 5.3% 5 Netherlands 16,733 3.8% 25,409 3.9%

6 Italy 19,763 4.5% 27,958 4.3% 6 France 17,139 3.8% 25,041 3.8%

7 Netherlands 18,050 4.1% 25,707 4.0% 7 Czech Rep. 15,305 3.4% 24,054 3.7%

8 Ukraine n/a n/a 18,020 2.8% 8 USA 10,635 2.4% 17,431 2.7%

9 Sweden 12,527 2.8% 17,581 2.7% 9 UK 11,431 2.6% 17,184 2.6%

10 Slovakia 11,080 2.5% 17,099 2.6% 10 Belgium 11,044 2.5% 15,137 2.3%


CurrencyCurrencyCurrencyCurrency

Central Bank average rates

as of 24 October 2014

100 USD 333.87 ↑

100 EUR 422.45 ↓

100 GBP 536.21 ↑

100 CHF 350.26 ↑

100 DKK 56.74 ↓

100 SEK 46.00 ↓

100 NOK 50.78 ↑

10,000 JPY 308.61 ↓

100 CZK 15.23 ↓

10,000 HUF 136.87 ↓

100 USD/EUR against PLN

300

350

400

450

12 N

ov 13

23 Jan 14

1 Apr 14

10 Jun 14

19 A

ug 14

24 O

ct 14

USD EUR

MMMMoney Supplyoney Supplyoney Supplyoney Supply

in PLN m Jun '14 Jul '14 Aug '14 Sep '14

Monetary base 173,096 164,008 167,008 166,104

M1 572,376 570,507 574,529 578,485

- Currency outside banks 120,828 122,209 124,986 124,389

M2 980,090 985,769 1,003,128 1,003,354

- Time deposits 426,351 434,256 448,037 444,514

M3 996,171 1,002,137 1,020,561 1,021,824

- Net foreign assets 290,786 301,207 304,359 310,172 Monetary base: Polish currency emitted by the central bank and money on accounts held with it. M1= currency outside banks + demand deposits M2= M1+ time deposits (inc in foreign currencies) M3= the broad measure of money supply Source: NBP

CCCCreditreditreditredit

The financial sector's net lending in PLN bn,

loan stock at the end of period

Type of loan Jun' 14 Jul' 14 Aug' 14 Sep' 14

Loans to customers 940,703 939,641 950,774 954,978

- to private companies 276,709 274,549 277,482 280,248

- to households 578,639 581,447 587,136 590,208

Total assets of banks 1,667,783 1,678,129 1,718,251 1,737,728

Source: Central Bank NBP

IIIInterest ratesnterest ratesnterest ratesnterest rates

Average weighted annual interest rates

on loans to non-financial corporations

Term / currency Mar '14 Apr '14 May '14 Jun '14 Jul '14 Aug '14

PLN (up to 1 year) 4.5% 4.4% 4.4% 4.5% 4.4% 4.4%

PLN (up to 5 y ) 4.9% 4.8% 4.8% 4.8% 4.7% 4.8%

PLN (over 5 y) 4.7% 4.7% 4.7% 4.7% 4.7% 4.7%

PLN (total) 4.7% 4.7% 4.7% 4.7% 4.7% 4.7%

EUR (up to 1m EUR) 1.9% 2.0% 2.0% 1.9% 1.7% 1.6%

EUR (over 1m EUR) 3.3% 3.0% 2.7% 3.4% 3.1% 2.5%

Warsaw Inter Bank Offered Rate (WIBOR) as of 24 Oct 2014

Overnight 1 week 1 month 3 months 6 months

2.12% 2.08% 2.03% 1.98% 1.97%

Central Bank (NBP) Base Rates

Reference Lombard NBP deposit Rediscount

2.00% 3.00% 1.00% 2.25%

Stock ExchangeStock ExchangeStock ExchangeStock Exchange

Warsaw Stock Exchange, rates in PLN

WIG-20 stocks in alphabetical

order

Price 24 Oct

'14

Change 17 Oct

'14

Change end of

'13

↓ Alior Bank 75.7 +3 -7

↑ Asseco Pol. 48 +8% 4%

↑ Bogdanka 112.45 +2% -11%

↑ BZ WBK 378.1 +2% -2%

↑ Eurocash 34.9 +3% -27%

↓ Grupa Lotos 27.4 -1% -23%

↑ JSW 28.56 +2% -46%

↑ Kernel 23.48 +6% -38%

→ KGHM 126 0% +7%

→ LPP 9,700 0% +8%

↑ mBank 489.95 +2% -2%

↑ Orange Pol. 10.2 +1% +4%

↓ Pekao 175 -3% -3%

↑ PGE 22.47 +5% +38%

→ PGNiG 4.9 0% -5%

→ PKN Orlen 41.62 0% +2%

→ PKO BP 36.50 0% -7%

↑ PZU 485.75 +3% +8%

→ Synthos 4.09 0% -25%

↑ Tauron 5.36 +6% +23%

Source: Warsaw Stock Exchange

Key indices

as of 24 October 2014

WIG Total index

55553333,,,,320320320320....13131313 Change 1 week +1% ↑

Change end of '13 +4% ↑

WIG-20 blue chip index

2,2,2,2,444426262626....20202020 Change 1 week +1% ↑

Change end of ' +1% ↑

WIG Total closing index

last three months

49,000

50,000

51,000

52,000

53,000

54,000

55,000

56,000

25 Jul 14

19 A

ug 14

10 Sep 14

2 O

ct 14

24 O

ct 14


Poland Today Sp. z o. o.

ul. Złota 61 lok. 100,

00–819 Warsaw, Poland

tel/fax: +48 22 464 82 69

mobile: +48 694 922 898,

+48 602 214 603

www.poland-today.pl

Business Review+ Editor

Lech Kaczanowski

office: +48 22 412 41 69

mobile: +48 607 079 547

[email protected]

Business Review+ Subscription

1 year- EUR 690 (PLN 2760)

6 months- EUR 375 (PLN 1480)

3 months- EUR 245 (PLN 980)

Sales Director

James Anderson-Hanney

mobile: +48 881 650 600

james.anderson-hanney@poland-

today.pl

Publisher Richard Stephens

Financial Director Arkadiusz Jamski

Creative Director Bartosz Stefaniak

New Business Consultant

Tomasz Andryszczyk

RRRRegional Dataegional Dataegional Dataegional Data

Poland's regions

(main cities indicated

in brackets)

Industrial output

Jan-Sep 2014 *

Monthly wages (PLN)

Jan-Sep 2014**

Unemploy-ment

Sep 2014

New dwellings Jan-Sep 2014

Indus-

try

Constru-

ction

Indus-

try

Constru-

ction

in '000 % Num-

ber

Index *

Dolnośląskie (Wrocław) 102.7 109.7 4,381 4,237 125.7 10.9 9,505 78.7

Kujawsko-Pomorskie (Bydgoszcz) 104.6 109.1 3,449 3,312 126.4 15.7 4,448 96.6

Lubelskie (Lublin) 102.2 83.6 3,740 3,088 113.9 12.4 3,882 88.2

Lubuskie (Zielona Góra) 115.5 104.8 3,482 3,083 47.4 12.8 2,170 97.3

Łódzkie (Łódź) 100.9 110.5 3,748 3,335 128.4 12.1 4,673 101.0

Małopolskie (Kraków) 100.9 105.7 3,842 3,389 137.3 9.8 11,126 100.0

Mazowieckie (Warszawa) 100.0 107.1 4,629 4,970 254.6 10.0 21,956 111.1

Opolskie (Opole) 106.0 119.9 3,654 3,567 42.7 12.0 1,315 100.6

Podkarpackie (Rzeszów) 102.4 112.2 3,422 3,126 132.3 14.3 4,691 107.0

Podlaskie (Białystok) 107.2 119.2 3,330 3,940 60.3 13.1 2,836 103.5

Pomorskie (Gdańsk-Gdynia) 108.5 119.9 4,039 3,485 95.2 11.2 6,768 79.7

Śląskie (Katowice) 101.0 108.1 4,577 3,556 178.7 9.8 7,375 94.6

Świętokrzyskie (Kielce) 107.9 101.5 3,444 3,335 76.0 14.3 2,481 141.5

Warmińsko-Mazurskie (Olsztyn) 104.7 111.5 3,297 3,170 93.9 18.2 3,020 100.9

Wielkopolskie (Poznań) 106.4 102.8 3,758 3,794 118.0 7.9 9,875 101.2

Zachodniopomorskie (Szczecin) 103.9 103.3 3,557 3,500 91.1 15.2 4,017 99.7

National average 103.4 107.4 4,016 3,821 1,821.9 11.5 100,138 98.1

*) Index 100 = same period of the previous year. ** without social taxes

Sources: Central Statistical Office GUS, NBP, C&W

Foreign Direct Investment (EUR m)Foreign Direct Investment (EUR m)Foreign Direct Investment (EUR m)Foreign Direct Investment (EUR m)

Quarter Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14

in Poland 2,886 175 -3,020 1,885 -2,899 2,771

Polish DI -1,203 957 2,588 -1,449 1,575 562

Year 2008 2009 2010 2011 2012 2013

in Poland 10,128 9,343 10,507 14,896 4,763 -4,574

Polish DI -3,072 -3,335 5,484 -5,935 -607 3,684

Current Account (EUR m)Current Account (EUR m)Current Account (EUR m)Current Account (EUR m)

Period 2011 2012 2013 Q4 '13 Q1 '14 Q2 '14

Trade balance -10,059 -5,175 2,309 138 159 71

Services, net 4,048 4,642 5,249 1,941 1,684 2,013

CA balance -18,519 -14,191 -4,984 -1,324 -1,403 -553

CA balance vs GDP -5.0% -3.7% -1.3% -1.3% -1.1% n/a

Source: NBP, BZ WBK, PKO BP

UUUUnemploymentnemploymentnemploymentnemployment

Registered unemployed, in ‘000 and

% of population in working age

1,800

2,000

2,200

2,400

2,600

Q3 1

1

Q1

12

Q3

12

Q1

13

Q3

13

Q1

14

Q3 1

4

6

9

12

15 number (left axis) % (right axis)

Source: Central Statistical Office GUS

IndustrIndustrIndustrIndustrial ial ial ial PropertiesPropertiesPropertiesProperties

by region, 1H 2014

Existing stock, sq.m

Under const ruction, sq.m

Va-cancy ratio

Effective rents EUR/ sq.m/mth

Warsaw central 617,000 8,000 14.7% 1–5.0

Warsaw suburbs 2,137,000 14,000 11.3% 1.9–3.2

Central Poland 1,107,000 59,000 11.7% 1.9-3.1

Poznań 1,100,000 316,000 1.9% 2.3–2.9

Upper Silesia 1,576,000 57,000 7.9% 2.3–3.1

Wrocław 939,000 315,000 6.2% 2.4–3.0

Tri-city 215,000 45,000 4.2% 2.2–3.7

Kraków 159,000 11,000 1.9% 3.5-4.0

Homes & CHomes & CHomes & CHomes & Commercialommercialommercialommercial PropertiesPropertiesPropertiesProperties

City

New apartments* Offices 1H'14 Retail rents**1H'14

Q2 '14

PLN/sq.m

Change

y/y

Headline

rents**

Vacancy

ratio

Retail

centres

High

streets

Warsaw 7,924 -2.0% 11 -25 13.35% 100-120 148

Kraków 6,389 +6.0% 13.5-14.5 3.6% 35-40 78

Katowice 5,602 -3.7% 11.5-13.8 5.4% 35-40 50

Poznań 6,552 +3.3% 14-15 11.5% 35-40 62

Łódź 4,936 +2.6% 11.5-12.5 10.6% 35-40 78

Wrocław 6,092 +2.0% 14.15 10.9% 35-40 45

Tricity 6,092 -4.9% 12.8-13.5 11.5% 35-40 40

*avg, offer-based ** EUR/sq.m/month; Prime units 100-150 sq.m

Country Credit Country Credit Country Credit Country Credit RatingsRatingsRatingsRatings

Agency rating outlook

Fitch Ratings A- stable

Standard & Poor's A- stable

Moody's A2 stable

Source: Rating agencies

Real EarningsReal EarningsReal EarningsReal Earnings

Average gross wage vs inflation.

100

120

140

160

180

Sep11

May11

Jan12

Sep12

May13

Jan14

Sep14

Wage CPI

Index 100 = Jan 2005. Source: GUS

poland today business review+ no. 58

Documents

ukraine page

tarnw page

subsidiary page

slovakia page

nyc page

deloitte page

polish retail parks

kutno project page