Investor

Vol. XXI, No. 5 ISSN 1506-3240

American

MAY 2011

American Chamber of Commerce in Poland 2011

www.amcham.pl

Agenda: Joanna Kluzik-Rostkowska Prof. Dominika Maison Prof. Jerzy Langer Tadeusz Zygmunt

Monthly Meeting: Magorzata Krasnodbska-Tomkiel Focus: Starwood Hotels and Resorts

Nothing is black and white anymore

While commercial real estate in Poland is a hot spot for investors, the market is small and has a long way to go to reach maturity

AmCham online

Investor COVER STORY:

American
MAY 2011 Vol. XXI, No. 5

The American Chamber of Commerce in Poland

whats on

Your online guide to AmCham activities

www.amcham.pl

Download this magazine!

American Investor is available in full as a pdf for download from the www.amcham.pl website. Go to "About Us" in the horizontal menu, and choose American Investor Magazine from the pop-up menu. You can download past issues of American Investor dating back to October 2010.

4th of July Picnic Sponsorship Outline

The Fourth of July celebration hosted each year by AmCham has become a tradition among American business and the Warsaw community*. On Saturday 2 July 2011, the American Chamber of Commerce in Poland will once again organize this hugely successful party for key ofcials from member rms and the international business community. The event will be organized again at the beautiful Krlikarnia palace and the surrounding Arkadia park. Expected attendance: Target: Time: Format/Activities: 600+ (100 kids) Senior Management of over 300 member rms 6:00pm 10:00pm+ Party with live music, reworks, childrens play area, rafes of valuable prizes (airline tickets, hotel vouchers) with proceeds going to the AmCham Orphanage Assistance program.

Calendar
By clicking on red links in the Calendar you may visit photo coverage of our past events. Blue links will take you to the announcements of upcoming events.

Events
AmCham Monthly Meetings are one of the agship events organized by the chamber. While American Investor covers each Monthly Meeting extensively, including full-page pictorials, you can search through picture archives of past events that include never previously printed material. Just go to Events and Activities, pick Monthly Meetings and scroll down for links to archived events.

While commercial real estate in Poland is a hot spot for investors, the market is small and has a long way to go to reach maturity, page 14.
MONTHLY MEETING
Walk softly and carry a big stick Polands competition watchdog needs understanding and cooperation from the business sector to achieve its mission, p. 18

Nothing is black and white anymore

Sponsorship Options: PLATINUM (30,000 z) GOLD (20,000 z): SILVER (10,000 z) COPPER (5,000 z)
It is not our intention to exclude or discourage any Member rms from participating in the event in the form of in-kind sponsorship. Please contact us if you have a specic idea such as food donations, medical care, the childrens corner, etc. We have always held rafes and competitions, as they are extremely popular with both adults and children. For more information please contact: Anita Kowalska, Events Manager tel: +4822-520-5994 anita.kowalska@amcham.pl
* According to AmChams 2011 Membership Survey, our 4th of July Picnic is the most appreciated event by members.

FOCUS
Destination comes rst American Investor's Tomasz wiok talks with Thomas Schoen, Area Manager of Starwood Hotels and Resorts in Poland, about how the company helps promote Poland abroad and responds to the ever-changing trends in the hospitality industry, p. 20 From SheFO to CEO? Traditional gender roles are being questioned in Polish corporations, but men are still preferred in leadership, p. 22

Regions
AmCham may be closer than you think. Apart from Warsaw, AmCham has two regional branches which are active all year long and offer many exciting opportunities to interface with regional business leaders and politicians. To nd out more about our activities in Krakw and the region of southern Poland, and Wrocaw, go to Regions in the horizontal menu bar, and pick your region of interest.

EXPERTS
The EU asks for corporate governance The aftermath of the global nancial meltdown takes a heavy toll and may affect business regulations, p. 23 Battered, baked, frozen or fried The recipes for digital data disaster are countless, but so are the recovery techniques, p. 24 Making it stick A competent workforce needs lifelong professional learning, but measures must be in place before training can successfully transfer into the workplace, p. 25

Policy Watch
Intelligence: For AmCham position papers, policy statements, ofcial letters to government ministers and research papers, visit the Advocacy link on the horizontal menu to download the latest AmCham position papers.

EVENTS
March Breakfast Meeting in Wrocaw, p. 26 AmCham Business Mixer in d, p. 27 Monthly Breakfast Meeting in Warsaw, p. 28 April Business Breakfast in Wrocaw, p. 29 Spring Business Mixer in Krakw, p. 30 Business Mixer in Warsaw, p. 31

Other useful sites

U.S. Chamber of Commerce http://www.uschamber.com American Chamber of Commerce to the European Union http://www.amchameu.be AmChams in Europe http://www.amchamseurope.com

DEPARTMENTS
From the Editor, p. 2, From the Executive Director, p. 4, Newsline, p. 5, Agenda, p. 9, Content summaries in Polish, p. 32, Guide to AmCham Committees, p. 33

M AY 2 0 1 1

AMERICAN INVESTOR

YOUR AMCHAM

FROM THE EDITOR

The American Chamber of Commerce in Poland

BOARD OF DIRECTORS

New ray of hope for PPP

athering information for the cover story of the May issue of American Investor, I participated in a media briefing by consultancy KPMG about the forecasts for 2011 in the annual survey of companies in the construction industry, conducted by CEEC Research from the Czech Republic in cooperation with KPMG in Warsaw and Norstat, a market research company based in Oslo. The report revealed that construction companies expect the sector will grow in 2011 by 3.4% in market value and 3.5% in their own revenue. This may seem like a small step forward, but Poland has been lucky to have growth in the past few years. And what growth it was! During 20062008 the annual growth in market value was about 10%. 2009 was still positive, but growth slowed to 34%. Meanwhile, the markets in other countries in Central & Eastern Europe experienced a decrease in value. Breathtaking market growth in recent years is not the only way Poland stands out among CEE countries. Another interesting finding was that 90% of companies in Poland said the most effective way of getting new contracts was the tender process, and they ranked the importance of tenders at 7 on a 10-point scale. Another correlation there was that the bigger the company, the more likely it was to get new business through tenders. At the same time, in the Czech Republic, Hungary and Slovakia, the best methods to get new business were long-term cooperation and personal contacts. Another difference between Poland and its cohorts this year is that the level of uncertainty about the future is starting to grow on the part of construction companies here. As many as 21% of Polish companies surveyed said they were uncertain about their prospects for generating revenue in 2012. Meanwhile, expectations for growth in market value in 2012 have fallen to 1.5%.

Joseph Wancer Deloitte

Chairman

Judith Y. Gliniecki Wierzbowski Eversheds

Vice Chair

richard lada Telesto

Vice Chairman

peter kaY KPMG Polska

Secretary

stan popoW Finacorp

Treasurer

MEMBERS Tony Housh

APCO Worldwide

John Lynch
Lynka

Paul Fogo
Miller Canfield

Mac Raczkiewicz
Ex officio

Piotr Jucha
McDonalds

Roman Rewald Anna Sienko

IBM

Weil, Gotshal & Manges

Thomas Kolaja
Alvarez and Marsal

While it is still a positive number, the slowdown is clear. There are many reasons why 2012 looks uncertain for construction companies. Big companies who specialize in civil engineering have been getting new business in the form of major infrastructure projects, but they fear that come 2012 the imperative to build as much new infrastructure as possible for the Euro 2012 soccer championship (scheduled for JuneJuly 2012) will no longer be there. Combined with anticipated budget cuts by central and local governments, this makes big civil engineering firms uncertain what to expect. Add in the anticipated reduction in the inflow of cohesion funds from the EU in the new 20132017 budget period and the picture looks grim indeed. But nothing is as bad as it seems. Some companies will adjust to the changing market conditions. They will embrace other services, such as municipal waste utilization or airport management. Market consolidations also seem inevitable. But there is something else. The anticipated lack of financing from state and EU sources may ultimately lead to a revival of the public-private partnership model. One of the participants at the KPMG event pointed out that in Greece, PPP was not very popular before the country hosted the 2004 Summer Olympics, because most of the financing for the event came from the state budget. However, when the tap of state money ran dry, private investors were welcomed to participate in infrastructure projects. The same may happen in Poland. For now, Polands infrastructure needs are still paramount, and they will remain so after Euro 2012 is over. On the other hand the central budget is short of money, as are local governments. The spending spree led them to where they are, and in most cases they are only halfway home in terms of infrastructure needs. For years AmCham has been advocating PPP as an alternative for financing construction projects with great economic impact on communities. 2012 may ultimately mark a new beginning for PPPbetter than the first, let us hope.

Robert L. Koski
Kulczyk Investments

SPONSORS

Tomasz wiok

AmCham Auditor:

How long will the financing for big infrastructure projects last?

AMERICAN INVESTOR

M AY 2 0 1 1

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Newsline
AmChamNew Committee
Anya Ogrkiewicz from the Keryx Group and Michael Zawadzki from the InterContinental Warsaw are the co-chairs of AmChams new Marketing & Communications Committee. The mission of the new committee is to provide a forum for member rms to share knowledge and exchange experiences in marketing, communications and PR, provide educational and networking opportunities for member rms interested in these areas, and serve as an advisory body for AmCham.

News from AmCham and its members

AMCHAM STAFF
Executive Director director@amcham.pl

Dorota Dabrowski Marzena Drela

AmCham Policy Watch

Deputy Director marzena.drela@amcham.pl

Events & Media Manager anita.kowalska@amcham.pl

Anita Kowalska

Office Manager robert.kruszyna@amcham.pl

Robert Kruszyna

Membership and Committees Coordinator barbara.pocialik@amcham.pl

Barbara Pocialik-Malinowska Marta Pawlak

AmCham Krakw

Research and Policy Coordinator marta.pawlak@amcham.pl

In response to consultations organized by the Polish Public Procurement Ofce regarding nonprice criteria in public procurement procedures, AmCham submitted a letter to the ofce arguing that the principle of treating price as the main and oftentimes only criterion when evaluating bids is a major problem in public procurement procedures across various sectors. AmCham underlined that price as the principal criterion eliminates bids at a higher price but offering better conditions in other areas, such as a longer warranty period, on-time delivery, and state-ofthe-art technology. AmCham called for placing more weight on other criteria than price when evaluating offers in public procurement procedures, such as technical parameters, delivery schedule, and after-sales service.

Boeing

Project Assistant robert.chomik@amcham.pl

Robert Chomik

Baker & McKenzie

AmCham in Krakw
krakow@amcham.pl

Monika Pilarska

AmCham in Wrocaw
amcham.wroclaw@pmg.pl

Joanna Bensz

Published by the American Chamber of Commerce in Poland EDITOR-IN-CHIEF, ART & DTP

Investor

American

tomasz Wiok
tomasz.cwiok@amcham.pl

christopher smith
christopher.smith@neostrada.pl

EDITOR-AT-LARGE

Printing

Q Invest Ltd +48 22 424 6600 To contact AmCham please write or call: ul. Emilii Plater 53, WFC 00-113 Warsaw tel: +48 22 520 5999 fax: +48 22 520 5998 e-mail: office@amcham.pl www.amcham.pl

Challenges facing education in the 21st century were the subject of a meeting in March at the residence of US Consul General to Krakw Allen Greenberg. AmCham Board Member John Lynch presented the concept of AmCham Academy, an initiative that seeks to ll gaps in the educational system and teach basic business skills to students and young graduates of selected universities in Krakw to prepare them for careers at international companies. Also in March, AmCham Krakw invited managers of AmCham member companies to a meeting of the HR Council to discuss the problems, issues and challenges of the labor market, labor legislation, employee motivation and relations with labor unions. The meeting took place at the US Consulate in Krakw.

The Warsaw intellectual property team of law rm Baker McKenzie was named the best legal team in intellectual property issues in Poland by the UK trade magazine Managing Intellectual Property. In addition the team received a special mention in the category of trademarks. The intellectual property practice at Baker & McKenzie is staffed by 20 lawyers, headed by partner Marek Rosiski. The Managing Intellectual Property 2010 survey covered 75 jurisdictions in Africa, the Middle East, the Americas, Asia and Europe. It surveys the experience of law rms clients and practitioners.

A new chapter began at Boeing in March with the flight of the 747-8 Intercontinental at Paine Field in Everett, Washington. The new 747 was airborne for 4 hours and 25 minutes, achieving an altitude of 5,791 m and a speed of 463 km/h. It was the first in a series of test flights for the 747-8 that will total 600 hours. The 747-8 will offer the lowest operating cost per passenger mile among all commercial aircraft12% lower than its predecessor, the 747-400. Compared to the 747-400, the new model will be 16% more fuel-efficient and 30% less noisy, while emitting 16% less CO2 per passenger. The interior of the 747-8 will be similar to that of the 787 Dreamliner, including a design that offers passengers the feeling of spaciousness and comfort with more room for carryon bags overhead.

AmCham Wrocaw
In April AmCham hosted another breakfast meeting for member companies in Wrocaw. New AmCham Chairman Joseph Wancer took the opportunity to introduce himself to American investors in Wrocaw and Lower Silesia. Wancer shared his vision of further development, and Dorota Dabrowski, AmCham Executive Director, presented initial conclusions and recommendations stemming from a recent AmCham Membership Satisfaction Survey. Guests at the breakfast also learned more about 3M, one of the biggest American companies in the region. Xavier Douellou, 3Ms new general manager in Poland, accompanied by John Bowers, 3M director of manufacturing and supply chain for EMEA, introduced ongoing investment projects and provided a brief description of 3Ms further development plans in Poland.

American Chamber of Commerce in Poland 2011. All rights reserved.

Signature...................................................

Date:................................................

American Investor is the official publication of the American Chamber of Commerce in Poland. It is a voice for foreign investors and the business community in Poland. The magazine strives to keep our members and other readers up to date by following chamber news and reporting on the leading trends in business and policy. letters to the editor should be e-mailed to tomasz.cwiok@amcham.pl

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A M E R I C A N I N V E S T O R M AY 2 0 1 1

M AY 2 0 1 1

AMERICAN INVESTOR

Newsline
Cushman & Wakefield
Commercial real estate advisory firm Cushman & Wakefield represented the owner in the lease of 2,400 sq m of warehouse space and 300 sq m of office space at Panattoni Park Pozna II logistics park with tenant Agart-Pro, a distributor of bakery components. Cushman & Wakefield has been appointed lead letting agent for Eurocentrum, an office building on Al. Jerozolimskie in Warsaw. When delivered to the market in 2013, Eurocentrum will provide over 64,000 sq m of prime office space. The investor is CP Realty II, a part of the Capital Park Group. Cushman & Wakefield has been charged with finding premises for the expansion of Portuguese restaurant chain H3 in Poland. The first restaurant opened at Galeria Mokotw in Warsaw in January. Cushman & Wakefield represented Infosys BPO Poland, a business process outsourcing company, in negotiating a lease with developer Skanska for a 11,500 sq m office space in the Green Horizon project. Over 1,000 Infosys specialists will relocate to the new office in October 2012. Cushman & Wakefield also represented developer MLP Group in leasing 3,024 sq m of warehouse space at Millennium Logistic Park Tychy to Auto Partner SA, an auto parts importer and distributor.

HOT DATE

Jul.02.11
Event: AmCham 4th of July Picnic Place: Krlikarnia, Warsaw Time: 6:00 P.M.

News from AmCham and its members

tegrity NonStop systems family. It enables scale-up of capacity and performance without incurring downtime or performance bottlenecks. Some of the NB54000cs features include the proven NonStop architecture, consistently delivering the worlds highest application availability, complete investment protection through easy in-cabinet upgrade, the highest availability in the industry with built-in clustering, modern software development and runtime environments, significant price performance improvements as compared to previous products, and mission-critical support and service. strate GE Energys commitment to delivering cleaner, smarter, and more efficient ways for people to live, work and run their businesses. good. KPMG estimates that by 2013 80% of printing companies will be in the black, but consolidation in the industry seems imminent. KPMG said the total value of the printing market in Poland in 2010 was PLN 9.9 billion, and it may rise to nearly PLN 12 million in 2013.

InterContinental Warsaw
The InterContinental Warsaw has been nominated for World Travel Awards in four categories: Europes Leading Business Hotel, Europes Leading City Hotel, Polands Leading Business Hotel, and Polands Leading Hotel. The InterContinental Warsaw is a 5-star hotel in the city center with 326 guest rooms and 75 of the citys only luxuriously furnished Residence Suites. The World Travel Awards, launched in 1993, are regarded as one the highest achievements a travel product can receive. Votes are cast by 183,000 travel professionals in over 160 countries.

aszczuk & Partners

Law firm aszczuk & Partners is recommended in the field of litigation (civil, criminal, commercial and administrative) and arbitration in the 9th edition of the ranking of law firms published by Polish daily Rzeczpospolita in April. Maciej aszczuk, founding partner of aszczuk & Partners, was named the leading individual among recommended lawyers in the field of litigation and arbitration. The Rzeczpospolita ranking recognizes the largest and the best business law firms as well as the top lawyers in each specialty. The leaders are selected based on recommendations by law firms participating in the survey. This year, 233 firms participated in the ranking.

In other news, Pawe Oszczyk, the chef of La Rotisserie restaurant, has unveiled the menu for spring 2011. Starters include warm sea trout salad with asparagus and capelin caviar, and ravioli of crab with asparagus and champagne sauce. Fish dishes include curry of turbot with green vegetables and oyster tempura, fennel and tomato salad, and baked fillet of Atlantic cod, with cherry tomato and ginger salsa and prosciutto. Meats include a roast rack of lamb braised in Barbera wine and smoked pimiento sauce, and a grilled fillet of Irish Hereford with beet leaf risotto and crayfish sauce.

Enterprise Investors
Polish Enterprise Fund V, a private equity fund managed by Enterprise Investors, has exited its investment in the Polish aluminum closures manufacturer DGS SA. PEF V sold its 80% stake in DGS to Guala Closures Group in a transaction that placed the enterprise value of DGS at EUR 80 million. The deal requires approval from the Polish Office of Competition and Consumer Protection. Guala Closures Group specializes in the production of non-refillable closures for spirits, and is one of the main producers of aluminum closures in Europe, Latin America and Asia. It is also active in the food packaging and pharmaceutical packaging markets.

Massive Design
Regina Warsaw, won the Culinary Talent 2011 competition at the EuroGastro trade fair in Warsaw. The chefs and food critics on the jury shortlisted 12 young cooks from restaurants all over the country who submitted their recipes. Wichrowski won the competition with a mlimlo of beef sirloin and salmon and a risotto of crab and avocado in morel and Jack Daniels whiskey reduction. The competition was organized by the Robert Sowa Culinary Studio.

KPMG
Polish manufacturing companies have high levels of optimism as they forecast business growth and plan new investment projects within the next 12 months, including R&D, according to Pulse: Global Business Outlook Survey for Worldwide Manufacturing and Services, a study recently published by accounting firm KPMG. Of the companies polled in February, 63.5% said they expect their business to grow within the next 12 months. While manufacturing companies in the West are beginning to feel the change for the better, Polish manufacturers regained their confidence a long time ago, as the global economic crisis did not harm the Polish economy as badly as it did the West. But the growing confidence in Poland is also thanks to good economic indicators in Germany, Polands largest trading partner. In intended investments in R&D planned for the next 12 months, companies in Poland were ranked the 4th most optimistic, preceded only by firms in the Netherlands, Italy and France. When it comes to the employment forecast, 31.8% of manufacturing companies in Poland said employment would grow; 15.3% disagreed. Nearly 50% of manufactures in Poland do not expect any change in employment levels by February 2012. Meanwhile, sentiments regarding employment recovered in most EU countries, with the highest optimism recorded in the Netherlands, where nearly 46% of manufacturing companies expect to hire more people by February 2012. KPMG experts noted, however, that job hopes in the EU are suppressed by the difficult financial situation in Greece and Spain. In another report, prepared in cooperation with printing trade group the Polish Brotherhood of Gutenberg, KPMG found that 46% of printing companies in Poland expect sales to rise in 2011. The report also revealed that despite the crisis of 20082009, which brought significant cuts in marketing expenditures and thus had a severe impact on printing for the ad market, today 55% of printing companies in Poland evaluate their market situation as

Mamaison Hotel Le Regina

Mateusz Wichrowski (pictured), a staff cook at La Rotisserie restaurant at Mamaison Hotel Le

Przemysaw Stopa, the founder, president and chief designer at interior design studio Massive Design, was one of the designers from Central & Eastern Europe who showcased their products at an exhibition on transformation of light with the hi-tech surface DuPont Corian at the DuPont Corian Design Studio at the Milan Design Week exhibition in April. Stopas designs included Shell (pictured on the next page) a medium-height floor lamp with strongly defined wave shapes along the

Hewlett-Packard
HP has released the results of a Coleman Parkes survey which found that 68% of companies find it difficult to manage the avalanche of data they accumulate. The negative effects include problems with data administration as well as growing costs for storage space. The report also revealed that 59% of companies are under pressure to cut costs of information system administration. Other problems include a lack of leadership in executing a coherent policy for information circulation within companies. In the past IT specialists were charged with designing information circulation systems, but now, as IT systems embrace every department in a company, most companies find it difficult to assign the responsibility of supervising information circulation to one executive. The report revealed that 38% of companies polled assign this responsibility to general managers or company boards, while 43% stick to the old way and assign it to their IT people. The report also revealed that 70% of companies do not have any consistent strategy for information management internally, and 73% do not have any strategy for data protection that is enforced across all company departments. According to the survey, only 18% of companies plan to implement strategies to address these data management and security issues. In other news, HP has launched a new server, codenamed NB54000c, designed for enterprise workloads requiring zero application downtime and extreme scalability. The server is the newest addition to the HP In-

General Electric
GE has unveiled a new 2.5 MW wind turbine which can be deployed on over 85% of wind farm sites being developed today. The turbine generates a leading amount of annual energy production, and its 100 m rotor also makes it an excellent solution for low-wind sites. The turbine has a rotor blade technology which provides very competitive acoustic performance, which makes the turbine compliant at sites with the most stringent noise restraints while maintaining high energy yield. The 2.5 MW wind turbine can be equipped with various towers resulting in hub heights of 100 m, 85 m or 75 m, meeting potential tip height constraints and maximizing energy yield.

In other news, GE Energy showcased a portfolio of new products for European markets at the 2011 Hannover Fair in April, including the WattStation electric vehicle charger (pictured) and the innovative HabiTEQ home automation systems. The products demon-

A M E R I C A N I N V E S T O R M AY 2 0 1 1

Newsline
edges and engraved organic patterns to multiply translucency, Fin, a table or oor lamp whose organic shape is surrounded by nshaped plates, and Wakame, a tall oor lamp that uses multiple layers of different translucent Corian colors and shapes to illuminate many different tones.

News from AmCham and its members

been appointed to supervise the construction of the Termy Cieplickie spa in Jelenia Gra. The complex will comprise all-season pools fed through a geothermal water outtake from a well with a depth of 2,000 m. The project is estimated at PLN 52 million. The complex is being built on reclaimed land that was formerly home to a paper machinery plant. Sabre was recognized for its outstanding corporate culture and the work and social opportunities provided to employees. In addition to competitive medical and insurance packages, employees of Sabre Poland are offered exible working hours and the opportunity to participate in cultural events and sporting activities organized by the company. Sabre also invests signicantly in continuing education and development through extensive training programs and free language lessons and by funding postgraduate studies for staff. Sabre Poland is the rms second-largest ofce in the world, with 1,000 employees in two ofces in Krakwa center of innovation for the rm, which has developed some of the worlds most innovative travel technology solutions, including advanced software for in-the-air shopping, mobile services, rail solutions and corporate booking tools. The center also provides support to customers, including travel agents, airlines, hoteliers, corporations and travelers around the world.

Agenda
Political Discussion Forum

Intelligence from AmCham and its committees

Who comes rst?

J

PricewaterhouseCoopers
IPO Watch Europe, a recent survey by consulting company PricewaterhouseCoopers, revealed a drop in initial public offerings on European stock exchanges in 1Q 2011 by 71% in value and 26% in number. In total there were 95 IPOs on European exchanges in 1Q 2011, worth nearly EUR 3 billion, down from 129 with a value of over EUR 10 billion in 4Q 2010. In 1Q 2011 the Warsaw Stock Exchange generated the largest number of IPOs45 on the main trading oor and 38 on the alternative market, NewConnect. Most of the capital, however, was generated on the London Stock Exchange. PwC commented in the report that despite political and economic turbulence, condence is back on the world nancial markets, mainly due to many IPOs from companies in Russia.

A rebel says politicians should stop being so political

Panattoni
In April, warehouse and logistics operator Panattoni Europe was involved in the 10th Young Logistics Forum, the biggest student logistics event of the year in Poland. The forum at the Warsaw University of Technology, combined with a job fair, was attended by 16 student logistics clubs. Panattoni Europe experts taking part were Marek Foryski, who was a judge of student work, and Joanna Fajkowska, who gave a presentation on specialized logistics solutions at Panattoni parks. Students toured a facility in Oarw Mazowiecki built to suit by Panattoni for pharmaceutical company Neuca.

Salans
International law rm Salans has signed a cooperation agreement with Belarusian law rm Stepanovski, Papakul &Partners for investment projects in Belarus as well as Belarusian investment projects in the Russian Federation and elsewhere in Central & Eastern Europe. The two rms will remain independent. Salans and Stepanovski have worked together in the past on transactions involving companies from the IT sector and representing Belarus in delivery of a nuclear power plant project.

ProLogis
ProLogis, a global provider of distribution facilities, has signed a new lease for 17,200 sq m of warehouse space at ProLogis Park Bonie with Rhenus Contract Logistics, a provider of comprehensive logistics services across Europe. Colliers International acted as the broker for the transaction. ProLogis Park Bonie comprises eight industrial facilities totaling more than 152,000 sq m of modern warehouse space. Other ProLogis customers at the park include Arvato Services (Bertelsmann Media), DC, Interchem, Iron Mountain, Mercedes-Benz, New Idea Mebel, Optimum Distribution, Papyrus, Tradis and Wincanton.

PM Group
Project management specialist PM Group has

Members on the move

Richard Engel
Individual member Richard Engel has joined PKO Bank Polski as a director and Head of Corporate Debt Restructuring and Recovery. Engel is a restructuring and turnaround professional with over 25 years of experience in corporate management, venture capital and business advisory. Previously, Engel was a director at KPMG Advisory, VP at Pioneer Investments, and CFO at three major companies in Poland and the US. He is a CPA and holds an MBA.

New Members
IT specialist Citrix Systems Poland (www.citrix.com) has joined AmCham. The company is represented by Artur Cyganek, country manager. Commercial real estate agency Colliers International (www.colliers.com) has joined AmCham. Monika Rajska Woliska represents the agency. Restaurant company Metropolitan 2005 Sp. z o.o. (www.metropolitan-krakow.com) has joined AmCham. It is represented by CEO Jonathan Campion. Corporate advisory rm Monitor Group (www.monitor.com) has joined AmCham. The company is based in Zurich. Alexander King, associate partner, is the contact person. Accounting and auditing specialist Mazars Polska (www.mazars.pl) has joined AmCham. Michel Kiviatkowski, managing partner, is the contact person. Westinghouse Electric Company (www.westinghousenuclear.com) has joined AmCham. The company is based in Vasters, Sweden. The contact person is Mats T. Ollson, development manager.

Starwood Hotels and Resorts

Sheraton was awarded the title of Superbrand for 2010 for its strong identity, recognition in the marketplace, and seamless brand communications, by a panel of experts in branding and communications in the Polish edition of the Superbrands competition. There were 1,500 brands in the market in Poland entered in the competition, from which the judges picked 50 winners in various categories.

Starwood Hotels & Resorts

Tomasz Dejtrowski has been named head of HR for two Warsaw hotels in the Starwood Hotels and Resorts networkthe Sheraton Warsaw and the Westin Warsaw. Dejtrowski has long professional experience working for international companies, including PwC, Center Corporation, and Coca-Cola HBC Polska. Dejtrowski is a law graduate of the University of Warsaw.

Sabre Poland
Travel technology company Sabre Poland has been named Polands best employer, winning the Great Place to Work Award at a ceremony in Warsaw in April. The awards, organized by the Great Place to Work Institute, placed Sabre at the top in the category of companies in Poland with over 500 employees. The awards are given in 45 countries around the world, using an employee survey to determine each companys trust index and an external study called a culture audit.

think tank. There are academics who would oanna Kluzik-Rostkowska, head of a love to help the party draft legislation, but breakaway group of 15 members of the they can only do it afterhours. Other opposiPolish Parliament who left the Law & tion parties also face the problem of funding Justice party (PiS) to start their own political for legislative drafting, but they receive fiparty called Poland Comes First (PJN), said nancing from the state budget. The governthat it is high time Polands parliamentary ment itself has an army of lawyers to draft politics evolved from a base of personal animosities between opposing party members into a problem-solving approach based on rational thinking. Kluzik-Rostkowska, who was Minister of Labor & Social Policy in the Law & Justice government in 2007, met with the AmCham committee Political Discussion Forum in March. She told AmCham that if the nature of political debate in Poland does not change, the country will miss opportunities to play an important role in the European Union and catch up economically with the 15 old EU member states. Kluzik-Rostkowska blamed the coalition government run by Civic Platform (PO) and the Polish Peoples Party (PSL) for stalling necessary reforms, such as public finance reform, for fear of losing popular support before the upcoming parliamentary election this fall. She noted that seldom has any government in Polands recent history managed to last longer than one term, but apparently the government led by Prime Minister Donald Tusk has strong hopes of remaining in office for a second term. But this is a policy of small steps, instead of the big leap forward that she would recommend for the Tusk government. According to Kluzik-Rostkowska, one area that cries out for reform is public finance. She calls for cutting the mounting government deficit, raising the retirement age to address demographic problems, stripping teachers of their special privileges in order to move forward with reforms of school system, and cutting out early retirement for the military and the police while implementing further profession- Joanna Kluzik-Rostkowska laws. In the case of her own party, Kluzikalization of the uniformed services. She said Rostkowska said that as soon as it has in the case of the police, there are police ofsome financial resources the first thing it will ficers who would back such reforms but establish is a think tank to provide legal they will not speak out for fear of political support for the partys legislative initiatives. consequences. Explaining why the Polish political scene Kluzik-Rostkowska also said that Poland is so antagonistic, especially when it comes should enter into the euro zone, but only at to brawling between the governing Civic a time when adoption of the euro will be Platform and the opposition Law & Justice, good for Polands economy and Polish conKluzik-Rostkowska said that both parties sumers. have roots in the Solidarity movement, and She said that when it comes to ideas for the main politicians of both parties have new legislation, Poland Comes First has known one another for decades. Because of plenty of them. When it comes to detailed such strong personal ties, political conflicts proposals, however, the party has very limbetween the politicians become personal, ited resources to deliver prepackaged solutoo, and turn very emotional. tions because it is not associated with any

She noted that many politicians are psychologically immature and cannot draw a line between the personal and the political. She said that this ethos drove her to leave Law & Justice and establish a new party. As she put itin an unveiled reference to Law & Justice leader Jarosaw Kaczyskiit is easier to establish a new political party than to replace the leader of an existing party. The strong position of party leaders stems from the way financing is distributed across the party structure: it is allocated by the leaders. As a result, few politicians are critical of their party bosses, for fear of not getting enough financing in their own region. When it comes to politicians emotional shortcomings, Kluzik-Rostkowska said that many of them from the older generation have an inferiority complex toward the old EU states. They find it difficult now to act as equal partners with Western politicians. Many Polish politicians think that the best approach toward the old EU states is special pleading and begging for favors for Poland. Instead, Poland should be assertively standing by its own interests within the EU. When asked about Polish-American relations, Kluzik-Rostkowska said that the Poles have always had a soft spot for the US. Today, however, Polands support for the US should have strategic importance, because we live in a world where American engagement is necessary to solve almost any major international issueeven if the European Union gets involved. Kluzik-Rostkowska said that the political circles that her party represents are pro-economy and, indeed, liberal, although they may differ in other aspects of their world view. She said however that the L word has become verboten today because it is strongly associated with the political constellation around Civic Platform and what she calls its no-holds-barred attitudes. While supporting business development, Kluzik-Rostkowska warned that Poland has a long history of the wrong kind of business involvement in politics. She said that in the early 1990s there were people in politics who were there only to enhance business opportunities for the companies they were affiliated with. Although such links between business and politics will always exist, Kluzik-Rostkowska said that the syndrome was especially unhealthy in the early years of Polands new independence. The legacy is still felt, and it makes politicians in all parties shun any perception of ties to business. Meanwhile, businesspeople should be applauded in Poland, Kluzik-Rostkowska said, because it is small and medium-sized companies that crank out the bulk of Polands GDP growth. No government, she saidincluding the present onehas really tried to engage business in the right way.

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Consumer Products Committee

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Intelligence from AmCham and its committees

European Union Affairs Committee

Photo: www.europa.eu

Polish women do not see their place in the corporate arena, but on the home front

If the EU is all talk, no one will listen

The bosom of the family

A recent study showed that the stereotype of Polish women as traditional and familyoriented is largely accurate
When asked what values are important to them, most Polish women point to such traditional values as honesty, sensitivity and willingness to sacrice, but not necessarily intelligence, said University of Warsaw Prof. Dominika Maison, the quest speaker at the AmCham Consumer Products Committee meeting in March. Maison presented the results of a survey of Polish women she conducted for Edipresse, one of Polands largest publishers of womens magazines. The survey sought to draw a prole of psychology, lifestyle, and the things that make Polish women happy or unhappy, in order to help Edipresse better target its content. The study revealed that traditional values not only matter the most to women in Poland, but women also identify with such values. When asked what phrase best describes them, the greatest number of women indicated happy woman, followed by good housewife, good wife, and good mother. The number of women who picked job-related descriptions, such as professionally accomplished or successful person, was signicantly lower, said Maison. She added that she feels in this respect Polish women differ from their colleagues in the West, although there is no straightforward research to prove it. For most of the sample, nances were the primary source of dissatisfaction with their lives. Maison pointed out that this feeling stemmed from the fact that money is perceived as a tool for gaining personal independence. Therefore, when saying that they did not have enough money, the sample were not referring specically to their job situation. Women with huge salaries were just as prevalent in this group as those with belowaverage earnings. When it comes to the sources of happiness, 90% of Polish women said they were happy about their intelligence, and 70% were happy about their professional situation. Apart from nding an inclination toward traditional family values, the survey mapped out some areas where attitudes seem contradictory. For instance, one segment of women, whose characteristic mix of attitudes was dubbed pseudo-modern conservative, share a believe that the place of women is at home while at the same time they describe themselves as feminists. Another contradictory declaration that they shared is that sports are important to them, while in fact only a small proportion of them said they practice any sports. Women in this segment, whose median age is 40, mainly have a highschool education. Half of them have a permanent job, while nearly one-third do not work. Their other characteristic features include attaching a lot of importance to positions of power and authority, with disregard for family values, friendship and respect for others. They are also impulse buyers, who nd it difcult if not impossible to control their nances. Another contradiction that the report revealed, characteristic of the majority of the women polled, involved dissatisfaction with their weight. On average the sample viewed themselves as 6 kg too heavy, but the same respondents said their third most popular purchaseafter cosmetics and clothing was sweets. Some contradictions also surfaced in the area of cooking. While most women said they strive to cook tasty and healthy food, the majority admitted that the dishes they most frequently prepare are roast or fried meat and potatoes. The health quota on the table is lled by serving a dish with fresh vegetables. With all the contradictions and nancial straits, most Polish women describe themselves as happy, with the median for the sample at 75 on a 100-point scale. The primary source of satisfaction is the nuclear family, followed by friends and sexual life. But respondents were a little frosty when asked about sex, and nearly half of the sample refused to talk about what goes on in the bedroom. The segment that best represents core family-related attitudes, which the surveyors labeled as Polish Mother, is relatively hugesome 22% of the sample. The average age in this segment was 45. Women who were classied in this group have a feeling of accomplishment when surrounded by their family and friends. Although a signicant portion of them work, they perceive work as just a source of money, and they would be more than happy to quit if they had to choose between family and work. They feel like the mistress of their fate. This group generally has no hobbies, and no regrets about their lives. And, as it turned out, they are avid readers of cheap color magazines.

The vision thing

The European Union needs a vision equivalent to the American Dream to nd an economic future
rof. Jerzy Langer, Foreign Secretary of the Academy of Europe and former Polish Vice Minister of Science and Higher Education, who met with the AmCham EU Affairs Committee in March, said that since Poland joined the European Union in May 2004 the country has been contributing more to the EU budget for support of the development of science and research than it has gotten back. This is because Poland has to pay into the EU coffers first before it gets money back. With this mechanism, Langer said, the Polish scientific community is able to recover only 50% of the amount of money Poland has paid in. This makes Poland a net contributor in this area. Langer noted that some countries that entered the EU much earlier than Poland get more money back from the EU than they pay in. Greece, for instance, receives about 150% of the amount it pays in. This, according to Langer, is an indication of a systemic dysfunction when it comes to financing science and R&D across the European Union member states. This might also be one reason that Poland scores below the EU average in innovation, according to a European Scoreboard study (see the Cover Story of last months American Investor). Langer said that he hopes this issue will be addressed during Polands Presidency of the Council of the European Council in the second half of 2011. Another big problem across the EU is the unions lack of a consistent vision for sus-

tainable economic growth in the future. Instead, the EU produces lots of different analyses and forecasts that often amount to white noise. For instance BusinessEurope, an advisory body to the European Commission made up of representatives of the business sector, issued the Go for Growth paper in which it identified problem areas where solutions could help the European economies achieve sustainable growth. But according to Langer, the problems identified are not the real problems. For instance, in his view BusinessEuropes call to fight climate change is mostly marketing. Climate change first has to be understood before it can be addressed, Langer said. His next criticism focused on BusinessEuropes call for EU economies to ensure access to energy and raw materials. This is the least problem for Poland, Langer said. Poland has enough natural coal reserves to power its economy for the next 100 years, assuming that current demand stays flat. On the other hand, Langer cited recommendations for the European economy produced by the Swedish Presidency, which said that the EU needs to focus on financing programs that will create new opportunities for economic growth across the EU member states. Another recommendation was that energy and innovation are key to economic growth in 2012, according to the European Council. It also said that the free flow of knowledge has to be ensured across Europe. This recommendation implied that the European

Commission must be much more proactive in creating programs to build sustainable economic growth for the future through a fusion of science, education and innovation. Langer concluded that the EU is mostly talk. Meanwhile, he pointed out that some half a million EU citizens travel to the US to work. Among them are Poles, but also the British, the Germans and the French. The EU needs to stop talking, and start taking steps to make the EU a better place for young people to work. Meanwhile the EU is bound by backward laws that have nothing to do with any coherent vision of future development. For instance, nearly half of the EU budget goes to supporting the EUs Common Agricultural Policy, but the two largest beneficiaries of CAP are reported to be the British Royal Family, owing to its landholdings, and the Rothschilds, with vineyards across Europe. Ordinary farmers are not the true beneficiaries of the EU agricultural policy, Langer said. According to Langer the migration of young Europeans to the US goes to show that there are serious obstacles for young people who want to work in the EU, which are not to be found in the US. Langer said that in this respect, the US is winning the HR battle with the EU. The American Dream remains a powerful magnet, but Europe has developed no comparable vision. In this, AmCham members and other American businesses in Europe could help. As Langer said, Unless there is the European Dream, nothing is going to change.

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Agenda
Defense & Security Committee

HOT DATE

Jun.03.11
Event: AmCham Monthly Meeting Place: InterContinental Warsaw Time: 8:00 A.M.

Intelligence from AmCham and its committees

European Union Affairs Committee

During Euro 2012 UEFA will be responsible for safety and security at the stadiums

FATCA will apply to US businesses and privately held non-US operating businesses, among others

Good, clean fun

AmCham gets an inside scoop on the extensive measures in place to assure that the Euro 2012 soccer championship goes smoothly and safely next summer
oland has implemented 80% of all the necessary programs to achieve adequate safety and security levels for fans attending the Euro 2012 soccer championship, said Tadeusz Zygmunt, who is responsible for coordinating security on the national level for PL.2012, the company that is coordinating all the preparations for the 2012 UEFA European Football Championship, which Poland co-hosts next summer with Ukraine. Zygmunt made his remarks at the meeting of the AmCham Defense & Security Committee in March. Zygmunt said that during the event it is the Union of European Football Associations, through its company Euro 2012, that will be responsible for safety and security at the stadiums and hotels where teams and VIPs are staying. PL.2012 will be responsible for successful implementation of safety and security everywhere else. As former organizers of Euro championships have testied, it is a paramount task, because soccer fans congregate in every imaginable placenot just the locations set up by the organizers for fans to watch the matches in public. Over a million soccer fans are expected to watch the 15 matches in Poland, either live at the stadium or beamed into other public spaces. Zygmunt said that one way of accommodating the crowd is Fan Zones, where fans may congregate and watch their teams play on big screens. The Fan Zone in Warsaw will be ready to accommodate 100,000 to 120,000

Bagging the fat cats

Under FATCA, a new set of rules are being developed in the US to help the IRS capture US taxpayers abroad based on the payments made to them
he agenda of the AmCham Tax Committee meeting in April was devoted to the impact that new tax regulations will have on US taxpayers abroad, foreign financial institutions with US account holders, other foreign entities in which US taxpayers have an interest and other entities receiving proceeds from the US. Two guest speakers, Leszek Tokarski, a partner at Deloitte on the Financial Institutions Team, part of the Tax Advisory Department of Deloitte, and Aneta Saramak, a manager on the same team, said that the US Foreign Account Tax Compliance Act (FATCA), which was signed into law in March 2010, intends to ensure there is no gap in the ability of the US government to determine the ownership of US assets in foreign accounts. FATCA seeks to identify US taxpayers having accounts at foreign financial institutions (FFIs)non-US entities such as banks, brokerages, hedge funds, private equity funds, and family investment vehicles. FATCA attempts to enforce reporting of those accounts through withholding. From 2013, FATCA will impose new reporting requirements on both FFIs and non-financial foreign entities (NFFEs). FFIs will be required to enter into disclosure compliance agreements with the US Treasuryan annual reporting regime with respect to US accounts held by certain US investors. All NFFEs must report or certify their substantial ownership. Generally, FATCA requires a withholding agentany person having control, receipt, custody or payment of any withholdable paymentto withhold a tax equal to 30%

people. The cost of operating the Fan Zones is estimated at PLN 30 million. The overall safety and security preparations in Poland are supervised by the Euro 2012 Safety and Security Committee, chaired by Vice Minister of the Interior and Administration Adam Rapacki. The committee is made up of representatives of government ministries as well as the heads of all agencies, institutions and organizations that provide input on the overall effort, including police, prison authorities, and prosecutors. The committee has identied 15 areas crucial for safety and security levels, ranging from legislation and law enforcement to a consistent strategy for coordination of the activities of all the agencies and organizations involved, medical assistance, emergency services, and a consistent information policy before and during the event. Not all preparations are focused on the stadiums and the host cities, however. Poland and Ukraine, as co-hosts, will have to upgrade the quality of customs at the border, which is not only a border between the two countries but part of the EUs eastern border as well. On a wider level, PL.2012 will have to cooperate with international law enforcement organizations, such as Interpol, Europol, and Frontex, the EU agency responsible for maintaining civil services at the EU borders. Euro 2012 is directly responsible for implementing anti-terrorism measures at the venues, but in Poland it will cooperate closely with police and

the Government Protection Bureau. Other areas presenting special safety and security concerns include transportation and logistics. This will be a true challenge for Poland because, as Zygmunt admitted, the countrys road infrastructure is far from perfect. The last step is testing whether the system works and then shoring up areas that need improvement. Zygmunt said that the recent opening of the stadium in Pozna revealed a wide range of problems, both organizational and infrastructural, that still have to be solved. A team of experts was appointed to investigate the problems and draw conclusions that will help prevent the same problems from recurring at the three new stadiums that have yet to open, in Gdask, Warsaw and Wrocaw. In all, safety and security preparations are now being conducted through 120 projects, including over 3,500 individual tasks. Zygmunt said that some specic aspects of safety and security preparations have to wait until December, when UEFA conducts the draw to determine the matchups between the national teams. As Zygmunt said, Only when we know exactly where particular teams will play can we progress with proper security and safety preparations. He said that special measures will have to be in place at venues where Croatia, England, Germany and the Netherlands are playing. Their fans reputation for troublemaking precedes them.

on any withholdable payment made to a FFI or NFFE if they are non-compliant. FATCA applies to US accounts, that is, any financial accounts held by a specified US person or a US-owned foreign entity. The term US account does not include any depository account maintained by an individual if the aggregate value of all depository accounts does not exceed USD 50,000. The definition of a US person under FATCA is very broad and includes such persons as dual citizens of the US and another country, US citizens even if residing outside the US, US passport holders, persons born in the US unless they have renounced US citizenship, and lawful permanent residents of the US (green card holders). A withholdable payment is defined as any US-source FDAP income (fixed, determinable, annual or periodical income, including such items as interest, dividends, rents, salaries, wages, compensation and remuneration), gross proceeds from sale of any property which can produce US-source FDAP income, dividend-equivalent payments treated as dividends from sources in the United States from transactions such as total return equity swaps, or interest paid by a foreign branch of a US bank. FFIs will be required to report the name, address, and taxpayer identification number (TIN) of specified US persons, and for USowned foreign entities, the name, address and TIN of each substantial owner. Furthermore, FFIs will report to the US Internal Revenue Service the account number, account balance or value of gross receipts and gross

withdrawals of payments from the account, if required by the IRS. The 30% withholding tax may affect any payments from the US, specifically when FFIs to which such payments are made are non-compliant with FATCA or NFFEs do not provide the required information. It should be noted that FATCA may also affect entities that are not US persons, but receive payments from the US, in case of non-compliance. FATCA will affect more than financial institutions. The regulations will also apply to privately held non-US operating businesses, non-US professional services firms, and many other non-US entities receiving payments directly or indirectly from US sources. The new rules also require a withholding agent to withhold 30% on withholdable payments, unless the NFFE either provides the IRS a certificate that it has no substantial US owner or provides the required information on each substantial US owner. It should be noted that NFFEs that do not receive full compliance from their owners will be subject to a 30% withholding tax on the entire withholdable payment they receive, not pro-rated for the percentage of owners that are in compliance. While the US Treasury has been granted broad authority under many areas of FATCA, it is expected that significant administrative guidance will be published over the next few months. Both FFIs and NFFEs must ensure that systems are in place that will allow the necessary information to be collected, or risk suffering a 30% withholding tax. FFIs should be prepared to analyze the proposed guidance in view of their own capabilities, review existing know your client practices and US withholding documentation procedures, and be ready to implement additional systems, processes and procedures in response to the final rules from the US Treasury and the IRS, so that they can respond quickly to avoid unnecessary costs and penalties.

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COVER STORY: Commercial real estate

Nothing is black and white anymore

s commercial real estate enters its third decade in Central & Eastern Europe, experts say the market is about to undergo a fundamental change this year. Tougher regulations, economic austerity across EU countries, the sovereign debt crisis, and a still-tight lending market will challenge Europes real estate industry in 2011, according to Emerging Trends in Real Estate 2011, published by PricewaterhouseCoopers and the Urban Land Institute. The commercial real estate forecast, based on the opinions of 600 industry experts, predicts that 2011 will not be the turnaround year that the European real estate industry had hoped for. Rather, a two-speed market is likely to emerge which will reect a widening gap between investment hotspots and second-tier property markets. Some of the trends we saw last year continue, such as a ight to quality and a bifurcated market, with strong interest in the best assets in the global gateway cities and little interest elsewhere, said ULI CEO Patrick L. Phillips. The real difference in this years report appears to be the perceived weakness in the governments ability to spark demand or ameliorate the pain in the industry. Equally clear is the emphasis on the hard work of managing assets: repositioning properties to better meet market demand, creative approaches to maintaining and adding value, and effective and efcient property management. Last year, the industry was concerned that the large amount of debt maturing across Europe over the next ve years would prevent banks from undertaking new lending, but the new questions for 2011 are how much impact Basel IIIa new set of global regulatory standards on bank capital adequacy and liquiditywill have on the appetite of banks to lend to property and, when they do, how expensive this debt will be. Respondents expressed serious concerns about areas outside prime regions, even within the same country. With capital

While commercial real estate in Poland is a hot spot for investors, the market is small and has a long way to go to reach maturity

so risk-averse, winning cities like Munich, London and Paris will continue to absorb investment as the only places where tenant demand will be robust. Other investor favorites are likely to be Istanbul, Stockholm, Berlin and Hamburg. Investors are expected to avoid Dublin, Athens, Lisbon and Budapest. This view is conrmed by the European Investor Intentions Survey, issued in February 2011 by CB Richard Ellis. Over 340 investors in commercial real estate said that the most attractive region or country for investment this year will be Germany (33% of the sample) followed by Central & Eastern Europe (24%) and the UK (16%). Countries such as France, Spain, the Nordics and Italy appeared to have lost much of their lure for investors, scoring only 10%, 9%, 6%, and 2% respectively. This marks a big shift from last year, when the UK was viewed as the best place to invest (30%), followed by Germany and France (18% each) and CEE (15%).

looking at a very large number of investors and a very small number of properties, which could cause some issues. ofce market For years, ofce space has traditionally been viewed as the most liquid asset. The main reason is that within CEE especially, there are more ofce buildings and there is more variety of ofce space that differs in size, type and location. And, of course, ofce space has been in demand with tenants. In 2010 companies rented a total of 549,000 sq m of ofce space in Warsaw alone, which translates into 96% growth from 2009 numbers, according to the recent market overview MarketBeat from commercial real estate

cee, but where? Speaking at an industry seminar in March, Patrick OGorman, head of the CEE Capital Markets department at CBRE, said that out of all the CEE countries, Poland and the Czech Republic have been the two most attractive places to invest for the last two years. So the CEE, although referred to as one bloc, is not a uniform market. Now when investors say CEE, in most cases they are thinking Poland and the Czech Republic. This has various ramications. The CEE market is signicantly smaller than markets in the UK, Germany, France or Spain, in terms of the number of properties, square meters, and investment volumes. For instance, in 2010 the investment volume in Poland was EUR 1.85 billion, and in London alone it was EUR 8 billion. So Poland still has a very long way to go before it becomes a mature investment market. Because of that, naturally there is less opportunity, OGorman said, So we are

There are many projects, like Prosta Tower, scheduled for delivery to the market this year, which may bring rents down

specialist Cushman & Wakeeld. According to Halina Wickowska, a partner in the Warsaw ofce of law rm K&L Gates and co-chair of the AmCham Real Estate Committee, the fact that Poland was the only country in sight with positive GDP growth in 2009 triggered both local and foreign investors. This year investors interest in the ofce market continues, including in their numbers investment funds from Scandinavia that have not been present in Poland before. On the other hand, Wickowska noted that there are a large number of projects scheduled for delivery to the market this year, which may bring rents down. To lure more tenants and better utilize their assets, many developers are building projects that meet ecological and sustainable-development requirements. Skanska Property Poland, which currently has two green ofce projects under construction, Green Corner in Warsaw and Green Towers in Wrocaw, is building more and more ofces that comply with LEED global standards for environment-friendly construction technology. According to Nicklas Lindberg, managing director of Skanska Property Poland, The environmental awareness is rising rapidly among investors in Poland. They see not only environmental but also economic benets of being green. Tenants are aware that green construction is simply good business. Todays investment will yield even larger cost savings over time. Investors realize that sustainable ofces are also a guarantee of the highest quality and value on the property market. This may help get new tenants, but it will take some time before rents regain pre-2009 levels. Wickowska said, It is estimated that in 2009 rents dropped by 38% in Dublin, and approximately 25% in the London West End and the Warsaw central business district. It is estimated that rent costs will rise 2% per year until 2015. According to Wickowska, the Warsaw market is similar to the market in other big cities in Western Europe. The Mokotw Business Park area competes successfully with similar ofce areas in Germany or in London and is still viewed as an attractive investment location, she said. Poland is perceived better today than Spain or Portugal. It is also estimated that the return on investment in an ofce building in Paris or London takes approximately 20 years, but in Poland 10 to 12 years.

Compared with other CEE countries, the ofce market in Poland is still highly attractive. Poland is viewed as a politically and economically stable country, said Wickowska. In Ukraine, for instance, rents in Kiev fell 50% on average in 2009, compared to 25% in Warsaw. But Warsaw is a unique market within Poland, and the ofce market in the country at large best exemplies the concerns investors expressed in the Emerging Trends in Real Estate 2011 report, most notably their general lack of interest in less promising areas outside of prime regions, even in the same countries. The ofce market focuses primarily on Warsaw, said Wickowska. Compared to Warsaw, other big cities in Poland have a lot of room for improvement. The ofce market has not matured there enough to trigger foreign investors. According to Wickowska foreign investors are much less interested in ofce markets outside of Warsaw because

Polands regional business centers have poor infrastructure. However, it is estimated that since the beginning of last year, over 200,000 sq m of modern ofce space has been delivered to the market outside of Warsaw. Krakw and Katowice saw the largest increase of ofce space so far, Wickowska said. In 2011 and 2012, Krakw and the Tri-City will see the largest ofce space supply. While investment funds from Western Europe continue to be the main investors in Poland, there is growing interest expressed by Scandinavian funds, which are looking for assets in regional business centers across the country. Wickowska said that as commercial banks will not be as willing to lend money to investors as before, the importance of private equity investors will be growing in Poland. Experts also say that anticipated cuts in government expenditures, seeking to stabilize the state budget, will not negatively affect the markets. According to Wickowska,

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COVER STORY: Commercial real estate

as long as the cuts do not affect investors incentives, the ofce market will not see any negative effects. As we know from the past, she said, the market is more sensitive to the general economic situation globally and in Europe as such. The ofce market, therefore, especially when it comes to central business districts of big cities, will remain an attractive place for foreign investors. retail market Yet according to the European Investor Intentions Survey, it is not ofce space, as it was last year, but all types of retail real estate that are viewed as the most promising type of real estate for investment this year. The trend changed fast. In the February 2010 survey, ofce was indicated by 39% of the sample and retail by 34%; this year, nearly 45% of investors pointed to retail, and 39% ofce. Indeed, according to the latest edition of CBREs annual survey How Global Is the Business of Retail? which mapped the global store footprint of 323 of the worlds

top retailers across 73 countries to identify trends in global retail expansion at national and local levels, Poland experienced strong growth in retailer presence, with 32% of all retailers now located here, up by more than 1.5%. With GDP expected to grow 3.4%, it remains an attractive market for foreign retailers. Occupier demand was highest in Warsaw, where the amount of new space is limited and left some retailers frustrated in the search for suitable space. Krakw directly beneted from this lack of available retail space in the capital, with eight new store openings in 2010 to tie for third in CBREs top 10 of new entrants by city. Magdalena Frtczak, director of Retail at CBRE, said that Poland is a natural target for expanding retailers and saw a high number of new store openings in 2010, with retailers attracted to the high spend per head relative to other CEE markets. The biggest issue for retailers in 2011 will be accessing prime space, as the pipeline slowed dramatically last year, she said. With this in mind, some developers are now actively looking to redevelop and upgrade existing space to entice new retailers to the market. In other words, investors who look at retail projects do not have as wide a variety of projects as those who invest in ofce space. What is more, to have a successful shopping center, investors need to bring it to critical mass, which translates into a large investment. As Patrick OGorman from CBRE put it, In order to get a very good, dominant regional shopping center, you need to spend EUR 50 million in equity. There are a couple of deals on the market now that require EUR 70 to 80 million in equity. Even the biggest private equity players get a bit nervous over EUR 60 million equity. This is one of the main withdrawal

factors in the retail investment market. OGorman said that investors who try to nd the right assets need to look behind the macro gures and into the performance of the shopping center: There are so many new retail concepts coming up, so many new retailers coming in, that they can completely turn around a shopping center. Every shopping center therefore needs to be looked at in a signicant amount of detail. It is very fashionable to say for investors that they are looking to buy in Poland, but the reality is who actually has the expertise on the ground to really know what they are doing and improve a shopping center asset. OGorman said that small shopping centers that serve a niche are generating considerable demand, particularly from German funds. At the same time, it seems that the importance of small and medium-sized cities is on the rise. According to OGorman, Liquidity is always the big question for investorsif I buy this whom will I sell to?and I think we are seeing liquidity coming into the market. My thoughts are that over the next year the medium and small city market may see a slight yield compression, as more investors become comfortable with the liquidity. When it comes to the supply side, in 2Q 2010 market analysts forecast that retail stock would stand at about 550,000 sq m by the end of the year, and in 2011 stock would be no higher than 390,000 sq m. But in fact 2010 deliveries came to 440,000 sq m, while the potential pipeline for 2011 grew from 390,000 sq m to over 870,000 sq m. That is a big difference. But pipeline can also mean pipe dream. The numbers must be approached with caution, because pipeline projects include not just projects under construction, but also those that have only been announced. There is no way to discriminate between projects under construction in real life and projects that have been announced and are not yet under construction, OGorman explained. It happens rather often that developers announce projects but there is no follow-up on the ground, where nothing happens. This is a way of marketing their projects, as they hope to catch the attention of potential investors with their announcements. But the message is rather clear: the market is heating up again in terms of development pipeline. The new projects will be much more modern than those already

in operation. This year we expect 600,000 to 650,000 sq m by the end of the year, which is a considerable increase on the 440,000 sq m that we saw last year. OGorman added that each shopping center should be viewed as specic. It is about competition and concept evolution in going to the next generation of shopping outlet, he said. Retailers demands will change over the next 10 years, and a core long-term investor has to make sure they have a exible shopping center with a core location. While there are some new locations and new formats that investors are not so happy with, retail parks are a very stable concept for investors. They can t comfortably in an oversaturated market and still perform, OGorman said. Tenants there perform well too. In his view hypermarket-anchored shopping centers are particularly popular with investors because they offer a stable foundation of turnover and spending but also plenty of opportunity for asset management, such as canceling leases and resizing. He noted that what the market is missing today is investors in the lower valueadded segmentbetween core investors and opportunistic ones. This is where opportunities are, OGorman said. In CEE we have core investors and we have the opportunistic investors, and there is a gap in the middle for 1017% return on investment. There are some investors lling that gap, but it is the least competitive market. So if you are going for an asset and it does not quite ll the expectations for opportunistic returns, given the depth of investor demand coming into the market, the market will get deeper and broader, and this core-plus sector will ll in signicantly over the next ve years. So there are plenty of opportunities in CEE, but we have to look in detail at the individual asset, rather than what is driving the market. logistics market One of the most liquid markets last year was long-lease logistics. According to Cushman & Wakeelds MarketBeat report, 2010 proved better than anticipated for the sector. The total value of transactions on the logistics market in 2010 was EUR 215 millionthe best result since 2006. The supply grew by over 300,000 sq m, to 6.5 million sq m at the end of 2010, thanks mainly to US developer Panattoni,

which sold 9 logistics parks in three separate transactions, totaling EUR 165 million and 285,000 sq m of lettable space. Meanwhile, demand for logistics space grew by nearly 86% from 2009 numbers. New development projects began to take shape under the condition that enough pre-letting contracts were signed, while many projects were built-to-suit, such as the facility built for food distributor Intermarch, which Panattoni sold to a Credit Suisse investment fund for EUR 18 million. OGorman said that the logistics market is liquid because it comes out from the property level and becomes more of a bond structure. hotel market In the CB Richard Ellis European Investor Intentions Survey, the hotel sector was indicated as offering the least promise, with some 3% of investors indicating it as promising in 2011, but that is still better than 2010, when it was tipped by about 2% of investors. This growth was captured by the MarketBeat analysis from Cushman & Wakeeld. Although 2010 saw improvement in the market, growth was generated on a very small base, and it is hard to say that last year was good for the hotel development industry. Consequently, there are not too many projects in the pipeline. A ve-star Renaissance Hotel is under construction at Warsaw Chopin Airport. An Orbis hotel is also under construction in the Ochota district of Warsaw. Notably, more projects are underway outside of the capital, with a Novotel hotel under construction in d, where the Grand Hotel is also being refurbished. A new Hilton is being built in Wrocaw. According to Wickowska, the Warsaw market is the most attractive of all markets in Poland for the hotel industry. Because of the citys status as the business capital, the number of four- and ve-star hotels is higher than in other cities. Krakw, for instance, is mainly perceived as a general tourism destination. Despite being the capital, the number of hotels in Warsaw has been at for the last two years, while room bookings and rates have dropped. Forecast Market analysts estimate that in 2011 the value of all transactions in commercial real

estate in Poland will be over EUR 2 billionthree times the value in 2009. This should be largely generated by investment funds from Germany, including open funds, closed funds and special-purpose funds, which are active in all sectors. No doubt part of the growth in transactions in commercial real estate will be thanks to the inow of foreign direct investment. In 2010 Poland saw EUR 7.5 billion in FDI inow, a drop from EUR 10 billion in 2009. This was due to the delayed effect on Poland of the global nancial meltdown in 2008. The economic troubles in Greece took a toll on Poland as well. But experts estimate that the 2011 number will be EUR 12.7 billion. 2010 saw several important investment projects, both in commercial real estate and in industry sectors including defense and aircraft, said Wickowska. Thanks to those investments Poland has a chance to become an important back ofce for IT and high tech. In many cases, FDI helped keep companies with cash-ow problems aoat. Most new FDI projects were generated in Polands special economic zones, where investors, both foreign and domestic, can take advantage of tax breaks. When it comes to investments in commercial real estate, the main areas were big cities, including Warsaw, Krakw, Katowice and Wrocaw. While commercial real estate remains a relatively lucrative investment in Poland, and there are market indicators suggesting that in the two-speed market growth scenario presented by the PwC/ULI report, Poland will be on the faster side, the question of real estate investment trusts is bouncing back from the time it was rst raised in 2007. REITs are investment vehicles with a particular capital and tax structure investing specically in real estate. Wickowska said that REITs would no doubt increase the attractiveness of the commercial real estate market for investors in Poland. In 20072009 AmCham was lobbying the idea of REITs, and it was met with interest by the Ministry of Finance, Wickowska said. We were thwarted by the global economic crisis and the drop in real estate asset value the world over. Maybe now is a chance to take up the issue of REITs in Poland again?

Tomasz wiok

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MONTHLY MEETING: Market regulation

Guest speaker Magorzata Krasnodbska-Tomkiel, UOKiK President, with Joseph Wancer, AmCham Chairman

Walk softly and carry a big stick

Thanks to its organizational structure, with a presence on the national level but also regional offices in nine of Polands largest cities, the agency can effectively study whether market participants play fair with competitors and consumers. It can also effectively investigate cases of market concentration. Our organizational structure makes us unique in Europe, KrasnodbskaTomkiel said. It is an excellent structure to support efficient activities towards consumer protection and build a better culture of market competition. We effectively address issues pertaining to national markets, which is spectacular, but also regional markets, which is less spectacular but nevertheless important from the point of view of consumers as well as market players. Another aspect differentiating UOKiK from its counterparts in other EU countries is that the agency does not answer to any government ministry but reports directly to the Prime Minister. In this role, UOKiK advises on how legislation drafted by the government may affect competition and consumer protection. In 2010 UOKiK lawyers

Our organizational structure makes us unique in Europe. It is an excellent structure to support efcient activities towards consumer protection and build a better culture of market competition. We effectively address issues pertaining to national markets, which is spectacular, but also regional markets, which is less spectacular but nevertheless important from the point of view of consumers as well as market players.
the antitrust role. Her perception of the market was that there was an imminent threat from cartels, which directly harm consumers, and market consolidation, which dwarfs competitiveness in the marketplace and eventually harms consumers too. In 2009 UOKiK made headlines by imposing a huge fine on a group of cement manufacturers who had entered into an illegal price-fixing scheme. Since then, Krasnodbska-Tomkiel said, the business sector has sharpened its focus on UOKiK and its mission, and the number of requests for investigation of alleged cartel practices and attempts to stifle competition has boomed. But the media have tried to picture the agency as a bully eager to put its weight behind the free-market economy. According to Krasnodbska-Tomkiel, this image is wrong. UOKiK has every right to impose stiff fines when they are proportional to the wrongdoing. She argued that UOKiK has in fact shown a lot of restraint in its decisions. In 149 rulings UOKiK issued last year regarding market consolidation, there were none prohibiting a merger or acquisition. This year, she said, we stopped two mergers out of 40 cases we investigated. She explained that in each case where UOKiK must determine whether a consolidation may have a negative impact on competition, the agency conducts thorough market research. In the case of a merger

Polands competition watchdog needs understanding and cooperation from the business sector to achieve its mission
he guest speaker at the AmCham Monthly Meeting in April, Magorzata Krasnodbska-Tomkiel, President of the Office of Competition and Consumer Protection (UOKiK), offered insight into the philosophy of the institution, which is not only a cartel-buster but also a consumer guardian. This dual role is unusual among UOKiKs counterparts around the European Union. As KrasnodbskaTomkiel explained, Elsewhere in the world, these roles are usually separated and different institutions are charged with executing them. the mission today To understand why UOKiK took on this dual role requires a look at the institutions history. It was established over 20 years ago as part of the legal package aimed at transforming Polands economy from central planning to a free market. UOKiK facilitated that process. Today, when hardly any remnants of the centrally planned economy remain, UOKiK helps insure that free-market safeguards are not reversed.

reviewed some 3,000 bills, but they spoke out most strongly on two pieces of legislation: one regulating the system of public subsidies for prescription drugs, and another which would have concentrated the market for municipal waste operators in the hands of government-backed companies. Along with acting as a consultant to the government, UOKiK does market analysis and compiles reports on market concentration and the state of competition on various markets, for the government and the parliament. The office also suggests legal and organizational reforms to improve the competitiveness of the markets. Last year alone, UOKiK conducted 60 market analysis and research projects. This year two of them proved to be of paramount importance, as they effectively stalled market consolidation in the energy and railway sectors. no personal crusading When Krasnodbska-Tomkiel was placed at the helm of UOKiK by Prime Minister Donald Tusk in 2008, she decided to refocus UOKiKs activity to give more emphasis to

planned in 2010 between media outlet Empik and online media outlet Merlin, which the UOKiK found would hinder competition, the agency polled over 1,100 companies to find out how the merger would affect the market. Krasnodbska-Tomkiel said that UOKiK is by no means any stricter in its investigations during the economic crisis than it was before. She dismissed such claims by saying that the crisis is not a criterion for changing the way that UOKiK approaches cases. On the other hand, she said it is understandable that businesspeople may feel irate when their plans are stalled by the agency. But, she pointed out, the structure of certain markets has changed significantly in recent years, and some are very highly consolidated. The role of UOKiK is to scan those instances, run an in-depth analysis, and intervene when necessary. She stressed that UOKiK acts in the public interest, just like antitrust regulators elsewhere in the world. Krasnodbska-Tomkiel noted that as markets become more and more concentrated, some of the biggest problems that companies face in antitrust compliance are procedural. Companies that plan to merge may not know, for instance, how to properly notify UOKiK about the planned merger. This can lead to prolonged proceedings before the agency, which then leaves the companies in a state of uncertainty as they wait for the UOKiK to greenlight the merger with no strings attached, go through with the merger on certain conditions, or forget it. She said that the average time it takes for UOKiK to investigate a case and reach a conclusion is 53 days, which puts the agency within the norm for EU countries. She admitted, however, that the number of complex and time-consuming cases has been growing, which drags down the average. Krasnodbska-Tomkiel said that when it comes to anti-cartel decisions, UOKiK is fairly liberal compared to its counterparts in other EU states. We are the leader among EU countries when it comes to the number of decisions that call for corrective actions but abstain from penalties, she said. reaching out to business In its mission to uphold competitive markets that play by clear rules, UOKiK has issued a best practice guide for business in which the agency explains its policy and the principles it adheres to in executing its mission. It is true that the anti-cartel regulations are very general, KrasnodbskaTomkiel explained. Our goal in issuing the best practice guide was to clearly present our criteria in approaching market competition cases. She said that the agency is now working in cooperation with the government and the

business community on a new policy plan for 20122013. In the years to come, UOKiK intends to boost market transparency for the business sector so market players have a better understanding of what is legal and what is not. UOKiK cooperates closely with competition watchdogs in other EU countries through the European Competition Network to assure that competition and consumer protection standards are in line with those across the EU. This applies especially to understanding market consolidations and measuring how they may be seen as hindering competition in the marketplace. Krasnodbska-Tomkiel said that the office knows full well that a proper understanding of how M&A transactions affect the market is essential for the business sector. We have seen growth in mergers and acquisitions in Poland, she said. We investigated nearly 200 M&A cases in 2010 alone and concluded 149 of them, which was a 33% rise as compared with the 2009 numbers. Krasnodbska-Tomkiel stressed that the Office of Competition and Consumer Protection strives to take the business perspective into consideration. As she put it, Mergers and acquisitions are business-asusual elements of market activities. Tomasz wiok

Meet the speaker

magorzata krasnodbskatomkiel, President of the Ofce of Competition and Consumer Protection (UOKiK), has authored a number of publications in the area of Polish andEUcompetition law, including academic studies, commentary on Polish Supreme Court decisions, and press articles. Prior to her current post, Krasnodbska-Tomkiel was VP of UOKiK responsible for the Department of Competition Protection, the Department of Legal Affairs and European Jurisprudence, and the Department of Market Surveillance. She has also lectured onEU and competition law at the University of Warsaw, the Warsaw School of Economics, and the National School of Public Administration.

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FOCUS: Hotel industry

Destination comes rst

the polish tourism organization was a partner of itB Berlin 2011, a huge trade fair of the tourism industry which took place in march. how do you evaluate the activities of pto and other government organizations charged with promoting poland as a tourist destination abroad? We were very happy when we heard that Poland would be co-hosting promotional events at ITB this year. It is a step in the right direction and emphasizes the qualities of Poland. Nevertheless, we believe that more work needs to be done, especially when it comes to focusing on delivering a consistent message about Poland. So far there has been too much diversity in what different organizations communicate about the country, which to a certain degree creates uncertainty about what Poland stands for as a tourist destination. Promotion efforts of different agencies and organizations should be better orchestrated to send a more consistent message about the country. I have to say that Starwood tries to help. In 2010 we ran workshops with PR and advertising agencies and our partners in the industry to look at Polands core values and how to promote them consistently abroad. As a result of this program we submitted recommendations to the Poland Promotion Council. In our industry there is a saying, Destination comes rst. Even before any brands or other key drivers of the industry play a role in making a destination attractive, it is rst the destination itself that plays a part. We also reach out to different organizations abroad and organize press tours. Most recently we hosted members of the media from Italy, Spain and Germany. The visit was organized in cooperation with LOT Polish Airlines and Mazurkas Travel. As a result, there will be press articles showcasing different tourist destinations in Poland in international markets. Apart from journalists, we bring in travel agencies. This helps bring in more tourists in the MICE sectormeetings, incentives, conferencing and exhibitions. MICE is the backbone of our business, as it drives revenue from rooms and catering. So we continuously bring people in from abroad to showcase different markets in Poland for them. We also promote Poland on our television

American Investor's Tomasz wiok talks with Thomas Schoen, Area Manager of Starwood Hotels and Resorts in Poland, about how the company helps promote Poland abroad and responds to the ever-changing trends in the hospitality industry.

In our industry there is a saying, Destination comes rst. Even before any brands or other key drivers of the industry play a role in making a destination attractive, it is rst the destination itself that plays a part.
and there was still a bit of uncertainty. Some natural events, such as the eruption of a volcano in Iceland, which downed air trafc for a long time, also contributed to it. Fortunately enough, later last year the situation improved, and we closed 2010 with substantial business growth as compared to 2009. This year we have been seeing steady growth, but the growth curve is more at than that in 2010 for the same period. So we will have to see how the economic recovery continues across Europe. Also, the aftermath of the March earthquake in Japan will have an impact on us here in Poland in one way or another. However, I foresee nearly double-digit growth this year for our business in Poland, and I do believe we will see that again next year. how did the economic crisis affect starwood hotels and resorts in terms of investments? We are very happy with the locations that we have in Poland: Warsaw, Sopot, Krakw and Pozna. We continue to invest in our hotels in Poland. During the economic crisis, when others stopped investing in their business, we did not, and now we see the perks. We invested PLN 27 million in Poland in 2009 and 2010. This is paying off now as customers are recognizing the quality of the service and the quality of the product.

But investing also means investing in training programs for our people, so they have the right management skills and leadership skills. With or without the crisis, investing in people is the key investment to make. But we are very fortunate, because with six hotels in Poland we can provide diverse career opportunities for our people. Over the years we have seen people come up through the ranks through hard work, but also thanks to their own ambitions and development opportunities. Some of them have gone to work abroad. Others have come back from abroad to work in Poland again. It is a huge advantage for our people that they can really make it in our chain if they want. the euro 2012 soccer championship, which poland will co-host together with ukraine, will work as a catalyst for foreign tourists focusing their interest on poland. What benets do you anticipate for the hotel industry because of this event? Euro 2012 will have short-term and long-term impacts on tourism in Poland. We view June and July 2012, when the event takes place, as an opportunity to have a much greater share of revenue. But the event also provides an opportunity for all of the tourism industry to promote Poland to a much wider audience and clearly bring out Polands attractiveness. We as a company, and each individual hotel, are all looking forward very much to this event. industry reports also predict a faster recovery for the sector in emerging marketswhich, within europe, means central & eastern european countries. can you see that happening already? In this respect Poland is outstanding, because the country is one of our biggest sources of business in Central & Eastern Europe. Polish guests, including business travelers, people attending conferences, and individuals traveling for city vacations and city shopping, generate approximately 40% of our revenue in our hotels across Poland. This is good news, because the Polish market is clearly moving faster than some other markets in Central & Eastern Europe. But Polish tourists are becoming increasingly present in our hotels across Europe, Africa and the Middle East. Prior to the political crisis in Egypt, we saw a substantial increase in tourism from Poland there. That inow now has shifted to Turkey and some islands that belong to Spain. In terms of city tourism, we see more Polish tourists in Vienna, Berlin, London and Paris. They are part of the new trend where people take a short vacation of a few days, but more often, instead of vacations that last one week or two weeks as they did before.

poland still attracts a lot of new businesses. how does this affect the services you offer? We feel the growth of the business sector across Poland. The best example is our Sheraton hotel in Krakw, a city which for many reasons is Polands window to the outside world. For the last ve years we have seen more and more companies settling around the city. With it our customers have changed to a certain degree at the Sheraton Krakw, where we have seen a clear increase in corporate transient business. As a result, we have adapted some of the services we have in the hotel to better serve these types of quests. We have implemented such services as Club Lounge, Club Floor and Link@Sheraton. link@sheraton sounds like wireless internet access. how does it impact the hotel industry? It does impact the industry a lot. In our business we have to stay aligned to what our customers need. Part of this is wireless connection to the Internet in our Sheraton hotels. Along with technology comes social networking. We have a Facebook prole to help our clients communicate with us in a more direct way and also for us to communicate with them. We are looking at other social blogs too. We also use the Internet to communicate our culinary experience. We opened up a blog at www.akademia-kulinarna.pl which consists of posts from the chefs and from the sommelier at the Sheraton Sopot. The blog has become very popular, with some 20,000 visits a month. The readers not only read the posts, but also ask questions and seek culinary advice from our chefs. So, indeed, we are linked to the interactive media. We seek to understand our customers needs and how they communicate with their peers, friends and families. We provide interactive platforms for that. apart from technology, new lifestyle trends, such as a lifestyle of health and sustainability, have an increasing impact on the hotel industry. how is starwood hotels and resorts responding to that in poland? We have nine lifestyle brands, and each of them is engaged in CSR and sustainability programs. The Westin Warsaw has been leading the race in terms of focusing on the wellness and well-being of its customers. We have several products such as an in-room spa, Westin WorkOut and runWestina guided run across town with a running concierge. So people can identify with the Westin when it comes to their well-being and a healthy lifestyle. When it comes to the Sheraton brand, we are partners with Core Performance, a global company that allows people with busy schedules to really have a focused

plan on their workouts as well as on their nutrition. We implemented a tness center program last year where all Sheratons in Poland are equipped with tness areas that are designed in the same way, follow the same guidelines, and support the same exercise programsa set of 20-minute exercises. No matter which Sheraton you are at, you can get the same set. It is very convenient for business travelers. When they travel, people look for this now at our hotels. It has become a very popular offer. Along with health and tness, corporate social responsibility is a key subject for us. For two years our strategy has focused on two areas: children in need, and ecology. Sheraton partnered with the Orimari Foundation, which helps children with leukemia. We have done various events. At an event in November, where our chefs from all Starwood hotels in Poland came together, we raised PLN 450,000 for the foundation. We also work with an organization that provides school meals for children in rural areas of Poland. On a more global basis we work with UNICEF. Each of our brands focuses on a particular topic related to the core values of the brand. This way we help children in Africa and in some poor regions of Europe, too. So we have a clear strategy, we follow it, and we deliver. This is our responsibility. You mentioned the earthquake in Japan. i wonder how starwood hotels and resorts responded to the aftermath of the disaster. With 15 hotels and several thousand associates in Japan, we were fortunate that none of our hotels in Japan suffered structural damage, and our guests and associates were all accounted for following the earthquake and tsunami. Right after the earthquake, we had to close the Westin Sendai and the Sheraton Grande Tokyo Bay temporarily, due to power supply problems. Our hotels are located well beyond the expanded safety zone around the Fukushima Nuclear Power Plant, however. In addition, our Starwood Associate Relief Fund team handled requests for help from our affected associates. Following the earthquake, our hotels in southern Japan were experiencing high occupancy, as there was a large inux of people moving from north to south. Many foreign companies have relocated their employees and families to southern Japan. Starwood set up a special task force and emergency response team, which have been operating since the earthquake occurred to handle emergencies and deliver assistance with communications, transportation, evacuations and rst aid. Participants in the Starwood Preferred Guests program could also support disaster relief efforts through April by donating Starpoints to the American Red Cross.

network. Features about what is happening in Poland are shown on our internal television channel in our hotels in Europe and Africa and the Middle East. Last but not least, we also take part in different trade shows where we present Poland. We often participate in them together with the PTO, at the Polish destination booth or the Starwood booth. We promote Polish cities and the country as a whole. We also participate in panel discussions at such events, both in Poland and abroad. according to various industry reports, the hotel sector is on the path to recovery this year and will be back on the growth track in 2012 across europe. is this true for starwood hotels and resorts in poland? In terms of business growth, 2007 was one of the best we have had in Poland. Now we compare our business performance to that in 2007. From that perspective, 2010 did not start off that well, for different reasons. There was still some impact of the global economic crisis in 2008 and 2009,

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FOCUS: Gender equality

Expert: EU law

From SheFO to CEO?

The EU asks for corporate governance

ferences in salaries and career promotions, Towpik concluded. While most of the respondents said mixed male/female teams do best when it comes to work efciency, nonetheless 40% of the sample (35% of women and 45% of men) said they would rather have a man as their immediate supervisor if they could choose. career and family The businesspeople surveyed by Deloitte indicated that companies in Poland allow staff to combine a professional career with family life, particularly thanks to the more and more common option to work exible hours in nancial departments. The authors of the report noted that well-organized workows in nancial departments make them especially suited to ex-time systems. let well enough alone The respondents in this survey were not keen on having too many regulations on the job. Most of the sample were opposed to gender Very often quotas on company boards, and Sometimes with 54% rejecting the notion of across-the-board quotas, like those introduced recently in Norway, Never and as pointless. Very rarely Meanwhile, Poland recently introduced a quota for political parties, requiring that party slates of parliamentary candidates must include at least one-third men and one-third women.

Traditional gender roles are being questioned in Polish corporations, but men are still preferred in leadership
men and women were not evaluated as better lthough their management styles difor worse. fer, both men and women are viewed Most of the respondents agreed that as capable of successfully performing stereotypes associated with genders and their the duties of chief nancial ofcer. This is traditional roles in business are outdated and one of the conclusions of the SheFO surdo not t modern reality. However, the revey conducted in February by consultancy Deloitte among 337 business professionals in spondents admitted there are jobs they think are a better t for men, as well as jobs that Poland, mostly in nancial departments. women perform better than men. Women are perceived as being more capable of handling teamwork-related issues, cFos created equal such as motivating staff, organizing work, When asked about their views on the more and maintaining high business ethics. In appropriate gender for the position of chief turn, men are associated with focusing on nancial ofcer, the respondents did not nancial results, working effectively under favor either one. When asked how much male stress, and taking risks. and female CFOs should be paid, the sample Differences in management styles may afdid not show any gender preferences either. fect the chances of a managers being promoted from CFO to CEOfor both men and Regardless of the sex of the CFO, the sample said he or she should be earning about PLN women. Management styles and personal 20,00030,000 a month. Marta Towpik, direccharacteristics that should be developed by a tor of the audit department at Deloitte, noted CFO on the way to becoming CEO include leadership skills, strategic Total planning, comfort level with My company does not making bold decisions, nelet me combine a management position with Women gotiating skills, and efraising my children Men ciency. The sample perceived these features, conTotal Women with small chilsidered typical of CEOs, as dren can have flexible more prevalent among male work hours including Women working at home CFOs than female CFOs. Men This perception is most likely the reason that, as Total Company management 73% of the sample said, is not keen on letting men have an easier time managers, including Women women and men, take getting promoted to the parental leave Men CEO position, said Krzysztof Pniewski, a partner in Deloittes consultancy department. however that men tended to be more generOn the other hand, Pniewski said, our ous, and they were the majority among the research did not conrm any signicant difsample who indicated the range of PLN ferences in salaries earned by male and fe30,000PLN 40,000. Women are more remale CFOs. This was probably because the strained when it comes to talking about difdifferent management styles represented by
Please indicate to what degree you agree with the statement that management styles of men and women differ

The aftermath of the global nancial meltdown takes a heavy toll and may affect business regulations

By Pawe Marcisz aszczuk & Partners

orporate governance is a hot topic now. The recent crisis made legislators around the world less liberal and more suspicious not only towards financial institutions, but corporations in general. They are more and more aware of the influence that management and control over corporations has on the market and hence on the society. On the other hand, firms themselves have a significant interest in maintaining their image as wellgoverned, transparent and fair. Not only the results, but also the governance process influences a firms perception in the eyes of its prospective shareholders, and even consumers. In short, internal corporate process is no longer just internal. eu concerned The lesson the European Commission learned from the crisis resulted in last years Green Paper Corporate Governance in Financial Institutions and Remuneration Policies. On April 5, 2011, the Commission issued the more general Green Paper entitled The EU Corporate Governance Framework. The Commission is even considering the desirability of expanding corporate governance standards to unlisted corporations. As different companies have different problems, the Commission wonders if different measures should be adopted for corporations of varying type and size. Despite the Commissions assurance that non-financial firms are not to be punished for the crisis, as they did not cause it, the latest Green Paper contains an extensive review of the crisis. Some problems are explicitly labeled as having contributed to

the crisis, and some justifications are drawn from the consultations on the previous Green Paper devoted to financial institutions. The point is not that the Commission, haunted by memories of the crisis, is going to impose stringent rules on corporate behavior. Rather, it is collecting data to understand and avoid any failures that might lead to a future disaster like the one that occurred in the financial markets.

more or less ignored by the member states, one might expect attempts to adopt some binding acts, such as directives. It seems that the Commission is more concerned with non-executive directors than with executive directors (under the dual model, e.g. in Poland, that means supervisory boards rather than management boards). It is assumed that inadequate supervision played a part in the recent crisis. The Green Paper presents greater diversity as a hedge against herd thinking and proposes various solutions for improving involvement of non-executive directors.

Tomasz wiok

Do you support legal regulations which, as in Sweden and France, set quotas for women on corporate boards?

Strongly agree and Rather agree

Strongly yes and Rather yes Strongly no and Rather no

Strongly disagree and Rather disagree Total Women Men Total Women Men

Difficult to say

room for improvement Plainly, improving diversity means more women and more foreigners. The Commission regretfully noted the underrepresentation of women on Going deep boards. (For example, according The scope of the new Green to a Commission study, 47% of Paper is quite extensive and, inlisted corporations in Poland deed, impressive. It covers subhave no women on the board at jects ranging from corporate gov- all.) While less acute in terms of ernance for unlisted corporations, discrimination, the lack of forand diversification of corporate eign points of view is even more boards, to addressing and redress- severe in terms of statistics. ing short-termism, from the Sticking to the Polish example, shortcomings of the comply or 68% of listed companies do not explain model to risk managehave any foreign director on the ment and external board evaluaboard. tion, and from directors salaries Another question is whether to minority shareholder protection to require any special qualificaand participation, to employee tions of non-executive board shares. These are divided into members. Additionally, it might three main headings: board of di- be beneficial to introduce board rectors, shareholders, and the evaluation, which could be both comply or explain framework. internal and external. This The EU is not about to regulate would presumably raise quality. the whole field of corporate life. For greater engagement in the What is more, the Commission is firms affairs, the Commission in no way obliged to take any furis considering the possibility of ther steps, and it may well feel limiting the number of posisatisfied with the situation as pre- tions one director may hold on sented by the feedback it receives. various boards. It is solely for the Commission to Finally, the Commission is decide how and whether EU law pondering whether to introduce in this area should be improved. transparency of directors comNonetheless, we may expect propensation and shareholder votposals for both binding and noning on the directors payroll. binding measures. Even if the Commission acts, it may restrict long-term rules itself to soft law. However, given Another big issue is short-terthe fact that three subsequent mism. The Commission wants recommendations (on compensa- corporations to disclose risk tion of directors and on the role of and think of the long term innon-executive directors) were stead of stressing short-term

yields. To this end, it attempts to improve shareholders involvement. However, the problem is that some shareholders are satisfied with short-term profits and neglect the longterm perspective, which is vital for the society as the whole. As a result, to alter managements short-term perspective (reinforced by compensation systems), it is not enough to engage the shareholders in supervision. The percentage of longterm investors is shrinking, as is the average holding period for shares. Interestingly, part of the Commissions answer is to identify all EU provisions contributing to short-termism (such as accounting rules). Introducing transparency of institutional shareholders voting policies is also under consideration. Indeed, transparency is the keyword in the Green Paper. Following the US example, the Green Paper also touches on the issue of proxy advisers (firms providing voting advice to shareholders, attending meetings as their proxies and so on). minority counts Finally, the section dealing with shareholders takes another pass at the Gordian knot of minority shareholders rights. Basically, the question is whether to assign more rights to them, and in particular how to protect them against related party transactions (withdrawing assets from the firm). The Green Paper is intended to launch consultation by raising several questions and asking interested parties to submit contributions. This may be an opportunity for AmCham member firms to express their beliefs and reservations, which they may do until July 7, 2011. Further details about submissions, as well as the Green Paper itself, may be found on the Commission website at http://ec.europa.eu/internal_ma rket/consultations/2011/ corporate-governance-framework_en.html

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EXPERT: Computer data recovery

EXPERT: Training

Battered, baked, frozen or fried

The recipes for digital data disaster are countless, but so are the recovery techniques
lmost 75% of all documents created nowadays by companies and individuals, in Poland and abroad, are digital. Almost 90% of those will never be printed out, but will only remain stored on company hard drives, memory cards, or other new types of storage media. The fact that the software and structure of storage devices are better and better prepared for data protection does not mean that they will prevent data loss. On the contrary. Experts from Kroll Ontracks data recovery laboratories encounter over 50,000 cases every year of digital information loss, from all possible types of data carriers. In Poland, they mostly concern enterprises rather than private users. Denitely the biggest problem we have been dealing with in the last few years is the still low awareness of potential problems connected with data loss among senior management. Additionally, there is a widespread belief that creating backup copies is a universal remedy for all problems, and when it fails many companies and private users see no chance for recovering their data anymore. According to international and Polish data recovery statistics, this assumption need not be true. According to Kroll Ontracks world laboratory analyses, specialists recover lost data in 8 cases out of 10. Many companies in the Polish market are also afraid of high costs connected with data recovery. Yet the cost of data loss and lack of access to information is very often several times higher, or tens of times higher, than the cost of the recovery. In the case of the most important digital documents, critical for a given organization, even 10 days without access to them can decide whether the company will survive seasonal trends in data loss There are some regularities in the data recovery industry. One of them is the phenomenon of seasonal changes in the number of data loss cases. There are times of the year when people lose data more often than others. This happens mainly during the summer, but also in winter. This situation mainly concerns laptops undergoing extreme temperature changes on the way to and from work. In the summer, computers, especially company server rooms, are particularly prone to data loss. The main causes cited by specialists include flooding, burning of computer drives during thunderstorm short-circuits, and overheating of computers. In order to avoid such events, the experts mainly recommend using surge suppressors that protect against lightning and short-circuits as well as proper cooling of computers, with particular attention to the server room location (in a well-ventilated place, out of reach of water). A sudden change of temperature and the resulting moisture or stress to electronic parts are some of the most common causes of data loss found by Kroll Ontrack engineers in their laboratories worldwide in periods of severe frost. Switching on a computer that has really cooled down may shorten the life of a hard drive or even cause it to malfunction immediately, and it is only one step away from data loss. Therefore, any portable computer user, particularly employees storing critical company data on their hard drives, should remember about the dangers to electronic information posed by a frosty winter. It is also worth remembering that cases of data lost during frost also concern other devices, like smartphones. data recovery process So what does the data recovery process look like? At the first stage, data recovery engineers learn about the details of a given case on the phone and help to choose the best solution in terms of reaction time and costs. After the carrier has been delivered to the laboratory (in person or by courier), the experts carry out a detailed analysis of the problem and evaluate the condition of the data, the scope of damage, and the estimated time of recovery. The result of the analysis is usually a report that enables the customer to see the structure of the files and data that it is possible to recover, even before the actual process of data recovery starts. At this stage a cost estimate is prepared. All this information is shared with the customer. The process of data recovery starts immediately after the results of the analysis are accepted. Engineers recover and repair logical structures of data with over 120 different specialist devices and various software. After recovery, the data are delivered to the customer on a carrier of choice (e.g. external HDD or DVD). A backup copy is kept for 30 days on the company server and then irretrievably deleted, in accordance with security procedures. In the case of logical damage it is also possible to use the unique technology of remote data recovery. It is the fastest method of data recovery, making it possible to know the results of the analysis within a few hours. Kroll Ontrack experts carry out data recovery operations through a secure Internet connection, and the efficiency of these solutions is on a par with that achieved in the laboratory. interesting, bizarre, serious One of the most spectacular cases of data recovered by the international team of Kroll Ontrack engineers was restoring data after the Columbia space shuttle disaster. Although the disk was badly damaged (it was burning in the atmosphere when falling), it was possible to recover 99% of mission-critical data. Other exceptional cases included data recovered from a computer that fell out of a flying helicopter, a disk with an ants nest inside, and a computer accidentally baked in the oven.

Making it stick
A competent workforce needs lifelong professional learning, but measures must be in place before training can successfully transfer into the workplace
major study on global corporate human capital practices found that standardized corporate training may actually have a negative effect on shareholder value. How could that possibly be? Surely training has value. To the researchers, the likely answer was that it does create valuefor the marketability of the employee. However, when training does not carry over into improvement in day-to-day work processes, the employees CV may look better but there is no net effectiveness gain for the organization. Research indicates that less than 35% of all trained skills are still being used by employees one year after the training takes place. business results improvement. I call this hygienic-level training, which means that an annual training budget has been created without a specic developmental purpose to support the strategy. The money is there to be used for short-term employee motivation, but it rarely even accomplishes that objective. As far as strategic support, it is recommended that the senior team meet on what are the organizational performance goals and then work backwards. A clear dedicated workshop session or sessions tying the learning initiatives to business results help make this alignment explicit. Pilot testing with a smaller targeted learning group is also a good idea. Once the pilot testing has been evaluated, great care should be taken to see how fast the rollout for any organizationwide training should take place, in order not to dilute the intended effect. integrate Another critical element for successful learning transfer is whether or not managers have been trained on how to coach their direct reports as a competency. Managers also need to be trained in how to coach in the specic areas targeted in the learning initiatives. It is critical for the leaders to show employees how their new competency can be exercised through use in normal work processes, and how those work processes effect better performance results. The new skills learned by employees need to be integrated into the day-to-day operational processes of the organization. When anything new is attempted, failure is often a result. This is of course normal until mastery occurs. Malcolm Gladwell, in his 2008 book Outliers, made the point that in order to be the best at a skill there are thousands of hours of practice time required. Leaders need to encourage and support with consistency the acquisition of new skills by employees. It is important for participants to be actively engaged during the learning experience. Communication travels in both directions. Also, the ability to learn in teams and share experiences provides for greater motivation than lecture-style learning. Different styles of learning should be employed within an initiative. This can include business simulations, team coaching, e-learning, outside speakers and facilitation, as well as traditional corporate training. Training and learning initiatives should be designed to simulate as much real-world work as possible. This is where the Development Manager needs to ensure that the programs t within the practical experiences that really occur. Training should be carefully sequenced to master the basics of the skill before going on to higher-level skills programs. Many in-house corporate training programs are poorly designed and do not use proper instructional design methods, which causes the training to be uneven. The training needs to be systematic and to connect within a logical format. Follow up One of the most practical steps in reinforcing learning is to properly design follow-up and review. One-off training events have very poor success rates. Follow-up learning applications should already be built into the learning process. A good way to do this is using group facilitation sessions. This is an effective way to build the competency further that has been learned in the classroom. Follow-up is critical. Creating a genuine learning organization tied to business results can create high employee engagement and build shareholder value. Few global companies take full advantage of the opportunity. For those that do this well, it is a distinct competitive advantage. Organizations that employ learning initiatives to support strategic operational goals and have clear KPI targets as a desired outcome can obtain nancial returns that are signicantly higher than conventional investments. Instead of asking What is the bottom line? companies should look above their top lines to see the enormous amount of business opportunity available when investing intelligently in people development.

By Marek Suczyk Managing Director of the Polish subsidiary of Kroll Ontrack

By Peter Strupp president of the supervisory board United Business Development

or not, not to mention suffer heavy losses to the companys nances and image, which are inevitable in serious situations. In the case of companies, the largest number of requests for recovering les concerns accounting data, mostly involving databases, followed by documents saved in Word and Excel formats. In the case of private users, it is mainly photos and lms documenting important events like childbirth, family celebrations or holiday trips. Why do we lose data? We now know that the main causes of data loss are hardware malfunction (44% of cases) and human error (32%). Other reasons include computer viruses (7%), software corruption (4%) and natural disasters, such as ooding (3%). When analyzing the causes of data loss, we may refer to logical and physical damage to carriers. In the rst case we are dealing with damage to the le systems, corrupt les and damage to data structure. Cases of physical damage occur when the carrier is mechanically damaged, e.g. it has been smashed and it is not working properly. The most popular carrier Kroll Ontrack laboratories in Poland and worldwide deal with is still the hard disk drive. But more and more data are being lost from the increasingly popular solid state drives and other ash memory data storage devices, like USB ash drives. The main reason is a dramatic increase in the quantity of information in digital format. The main carriers for data that are currently recovered include hard drives in any conguration, single hard drives or RAID systems, memory cards, ash drives, and picture storage devices.

strategize Here are a few practical insights to help the learning transfer process become more successful within an organization. First, it is critical to understand that investment in corporate training and business coaching can be measured in terms of economic value created, using conservative assumptions. Just as a company may analyze a xed asset investment (and a required hurdle rate), the same can be done for investments in improving employee competencies. Senior leaders want to see greater impact in areas such as higher sales, higher team productivity, fewer customer complaints, greater customer retention, higherquality output, and so on. All of intangibles these desired outputs can be moneThere are many reasons for this. tized into a cash number. Even if Many leaders still do not know the management team does not how to increase the value of their want to jump through these measintangible assets that are not reurement hoops, they can do a pretty ected in the balance sheet but insightful analysis of learning inhave a direct impact on the marvestment and operational improveket value of the company. Assets ment with the KPI data they already such as organizational capability, collect. For more practical informaeffective corporate cultures, tion on this, I refer readers to the workforce competency, and lead- ROI Institute and their website at ership depth, require immediate www.roiinstitute.net. costing on the income statement Second, any learning initiative but are hard to measure and to needs to be aligned to the organizamanage. What is worse is the tional strategy and have an organimissed opportunities (lost cuszational structure to support the tomers and lower sales) that initiative. For example, if a retail occur due to improper employee chain is rebranding and needs to developmental strategies, which create a new customer experience the accounting system simply to pursue higher-margin cusdoes not capture. tomers, then the recruitment and In addition, corporate learning development activities of employees is an offshoot from the model of need to be tied to the initiative. A knowledge transfer found in uni- key point may be to focus on those versity settings. The lecturer deemployee groups that have the livers a verbal transmission of highest overall effect on business knowledge to the students. Much results. of this classroom transfer also ocWhat is still unfortunately all too curs in corporate training, necommon is that corporate learning glecting the strategic, social, poinitiatives have nothing to do with litical and ethical context in which alignment to strategy. Training is ad learning is taking place. hoc and not even concentrated on

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EVENT: Wrocaw

EVENT: d

March Business Breakfast in Wrocaw

n late March AmCham 1 hosted a breakfast meeting in Wrocaw to discuss issues concerning CO2 reduction, alternative energy sources and sustainable development. Panelists included Remigiusz Nowakowski, director of power project development at Fortum Power and Heat Polska, Randy Mott, president of Ceeres, and Micha Skwierczyski from Ernst & Young.

Between inventors and investors, take 2

ollowing the successful CEO Forum in March sponsored by the Business Angels Guild, the guild and AmCham organized a business mixer in d which featured the US Ambassador to Poland and top-ranking ofcials of the city and the province. Lucky winners took home rafe prizes, including the grand prize of enrollment in the Mini MBA program organized by the Polish-American Management Center at the Faculty of Management, University of d.

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1. Randy M. Mott, Ceeres, delivers his presentation. 2. Micha Skwierczyski, E&Y. 3. Remigiusz Nowakowski, Fortum Power and Heat Polska. 4. FM Hagan, Bill Hall, PGW. 5.Joanna Bensz, AmCham Wroclaw Director. 6. Tadeusz Kak, Softex Data; ukasz Kolendowicz, PM Group. 7. Radosaw Majda, HS Wrocaw; Magorzata Rajewska, Piotr Freyberg, 3M. 8. Bartek Tymczak, PM Group; Remigiusz Nowakowski.

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American Investor is available in full as a pdf for download from the www.amcham.pl website. Go to "About Us" in the horizontal menu, and choose American Investor magazine from the pop-up menu. You can download past issues of American Investor dating back to October 2010.

Download this magazine!

1. Hanna Zdanowska, Mayor of d. 2. US Ambassador Lee Feinstein; Hanna Zdanowska; Baej Moder, d Regional DevelopmentAgency; Dorota Dabrowski, AmCham Executive Director. 3. Marta Ciemniewska, HSBC; Katarzyna Strzelczyk, Deloitte; Anna aszkiewicz, d Regional Development Agency. 4. Wiesaw Oleksy, University of d; Tomasz Ciszewski, City of d. 5. Marek Cielak, Deputy Mayor of d; Ambassador Feinstein. 6. Alon Redlich, International Technology Sourcing; Baej Moder; Hanna Zdanowska; Dorota Sponsors: Ryl, Deputy Speaker of the d Province Parliament. 7. Mirosaw Proppe, KPMG; Zbigniew Wiatr, Magellan; Marcin Nowacki, Nowacki Business Management. 8. Baej Moder; Dorota Dabrowski; Przemek Kacprzak, PADI. 9. Guests watch rafe drawings. 10. Anita Kowalska, Dorota Dabrowski, Marzena Drela; AmCham; Hanna Zdanowska; Dorota Ryl; Joanna Bensz, PM Group; Katarzyna Wojciechowska, Procter & Gamble.

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EVENT: Warsaw

EVENT: Wrocaw

Monthly Breakfast Meeting

artel and market consolidation issues were on the agenda of the AmCham Monthly Meeting in April with guest speaker Magorzata KrasnodbskaTomkiel, President of the Office of Competition and Consumer Protection. The venue was the InterContinental Warsaw. More about the meeting on page 22.

April Business Breakfast in Wrocaw

n mid-April AmCham hosted another breakfast meeting for member companies in Wrocaw, which was a perfect opportunity for face time with AmCham Chairman Joseph Wancer and AmCham Executive Director Dorota Dabrowski, who talked about AmChams future challenges. See also the article in Newsline, p. 5.

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1. Joseph Wancer, AmCham Chairman; Magorzata Krasnodbska-Tomkiel, President of the Office of Competition and Consumer Protection. 2. Dorothy Hansberry-Bieguska. 3. Tony Housh, Piotr Jucha, AmCham Board Members. 4. Joseph Wancer; Richard Kauyski, Kauyski & Madeja. 5. Magorzata Krasnodbska-Tomkiel; Janusz Przeorek, Express Map Polska. 6. Iwona Her, Weil, Gotshal & Manges; Krzysztof Wiater, DLA Piper Wiater. 7. Ziemowit Majewski, InterContinental Warsaw; Dorota Dabrowski, AmCham Executive Director. 8. David DeBenedetti, DeBenedetti, Majewski, Szczeniak; Peter Turo, Mode Ory. 9. Judith Gliniecki, AmCham Vice Chair; Lech Bieguski, GTZ International Services; Magorzata Krasnodbska-Tomkiel. 10. Tim Hyland, FCm Travel Express; Adam Kapitan Bergmann; Jon Gerald Kolasinski.

1. Dorota Dabrowski, AmCham Executive Director. 2. Joanna Bensz, AmCham Wrocaw. 3. Xavier Douellou, 3M Polska. 4. Guests at the business breakfast. 5. John Bowers, 3M Polska. 6. Jarosaw Konior, PM Group; Dorota Dabrowski; Joseph Wancer, AmCham Chairman. 7. Xavier Douellou; Jarosaw Konior. 8. Joseph Wancer; Dorota Dabrowski; Daniel Grodziski, Wierzbowski Eversheds. 9. Xavier Douellou, Piotr Freyberg, Bartek Sobolewski, John Bowers, 3M Polska. 10. Joseph Wancer; John Bowers.

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EVENT: Krakw

EVENT: Business Mixer Warsaw

Springtime in Krakw

Business Mixer at the Sotel Victoria

2
n spite of other big events in town on that night, AmCham members and friends turned up in large numbers at the Business Mixer held by AmCham at the Grand Ballroom of the Sofitel Victoria Warsaw Hotel. Along with great company and great raffle prizes, the participants enjoyed a breathtaking selection of French food and other varieties of haute cuisine prepared under the supervision of Olivier Croso, the chef of the hotels Canaletto restaurant.

n spite of freezing temperatures and snow falling in the Tatra Mountains, the Krakw branch of AmCham decided to officially welcome spring. Superstition notwithstanding, April 13 proved to be a lucky date for social gathering and business networking. The chef at the Holiday Inn confirmed his reputation as one of the best cooks in Poland by preparing a variety of tempting dishes.

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1. Barbara 8 9 Ziba-Romaszkan, Fluor; Prof. Krzysztof Zieliski, Prof. Janusz Szpytko, AGH University of Science and Technology; Jonathan Koeler, US Consulate General in Krakw; Marek Rajca, Silgan White Cap; Mieczysaw Pasowicz, Polish Association of Hospital Directors. 2. Allen Greenberg, US Consul General to Krakw; Marek Rajca; Monika Pilarska, AmCham Krakw Director. 3. Dominik Kania, Woodward Governor; Hirokazu Sanjo, Mitsubishi Electric; Monika Pilarska; Mungo Keulemans, Marek Suczyk, Kroll Ontrack. 4. Stanisaw Kracik, Governor of Maopolska Province; Ruben Robles, CH2MHill. 5. Ewa Martuszewska, Fluor; Tomasz Lurka, AmCham Krakw; Monika Pilarska. 6. Pushkar Butani, Dominika Penderecka, Top Magazine; Ruben Robles. 7. Ruben Robles; Allen Greenberg. 8. Monika Pilarska; Honorata cisowicz, Pawe Tynel, Ernst & Young. 9. Dorota Adamska, BP Europe SE; Jowita Gdula, Marcin Micho, Iron Mountain.

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The event was generously sponsored by

1. Jim Johnston, ExxonMobil; Jean-Michel Lathuilliere, Sofitel Warsaw Victoria. 2. Jean-Michel Lathuilliere; Dorota Dabrowski, AmCham Executive Director. 3. Mirosaw Uczciwek, Credit Suisse; Janusz Mazur, Raytheon International. 4. Bartomiej Morzycki, 3M; Magdalena Kamiska, Este Lauder; Dorota Dabrowski. 5. Dorota Dabrowski; Ari Hecht, ERG/Environmental Research Group. 6. Maciej Skrski, Sofitel Warsaw Victoria, Wojciej Paalski, TP S.A. 7. David Debenedetti, Debenedetti, Majewski, Szczeniak; Stefan Czetwertyski, Xpress Couriers. 8. Alexander King, Monitor Group; Jim Wilson, US Commercial Service. 9. Marzena Drela, AmCham; Radosaw Lesiak, Avis. 10. Haute cuisine.

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SUMMARIES: in Polish

AMCHAM: Guide to Committees

W tym numerze:

COVER STORY

For the most recent information about the work of AmCham Committees, and upcoming events: www.amcham.pl

Rynek nieruchomoci komercyjnych w Polsce, cho wci atrakcyjny dla inwestorw, jest may i musi przej jeszcze dug drog zanim uzyska dojrzao, str. 14
MONTHLY MEETING
kontrola rynku Magorzata Krasnodbska-Tomkiel, prezes Urzdu Ochrony Konkurencji i Konsumentw, o misji urzdu i wsppracy z biznesem, str. 18

Agri & Food

www.amcham.pl/agri_food
Mission: To provide a platform for discussing and solving issues and identifying opportunities in the agricultural and food sector by creating a base for dialogue and expertise. Co-Chairs: Andrzej Pawelczak, Animex; Maciej ubieski, Universal Leaf Tobacco Poland.

Financial Services

www.amcham.pl/financial
Mission: The Financial Services Committee aims to identify and promote issues related to and in support of the financial services sector, as well as to provide a forum for dialogue among sector professionals and decision-makers in government. CoChairs: Andrew Hope; Adam Michon, MetLife.

Pharmaceutical

www.amcham.pl/pharmaceutical
Mission: To discuss and identify common interests and exchange information regarding Polands pharmaceutical market; to act as a representative body and collective voice of pharmaceutical companies before governmental institutions. Co-Chairs: Peter Koetsier, Bristol-Myers Squibb Polska; Roberto Servi, Eli Lilly Polska.

www.amcham.pl/consumer
Mission: To provide a forum to share knowledge and exchange experience in all areas common and relevant to manufacturers and distributors of goods. Co-Chairs: Magorzata Surdek, CMS Cameron McKenna; Agnieszka Dzigielewska-Joczyk, HP Polska.

Consumer Products

Health

www.amcham.pl/health
Mission: To provide a united forum for US companies to share their expertise on the healthcare system and exchange knowledge and experience with national counterparts, contribute to the positive developments in the sector and promote the US experience and capital while establishing the best conditions and opportunities for investments. CoChairs: Elisabeth Asirifi, IBM Polska; Jolanta Chlebicka-Dominiak, Johnson & Johnson.

Political Discussion Forum

www.amcham.pl/pdf
Mission: To build relationships with key players in Polish politics, regardless of whether within the government or not, in small groups and in private settings, to serve as a vehicle into the world of Polish politics behind official curtains. CoChairs: Robert Koski, Kulczyk Holding; Marek Matraszek, CEC Government Relations.

Corporate Social Responsibility

www.amcham.pl/csr
Mission: To encourage and facilitate responsible business practices among AmCham members to support them to improve the quality and effectiveness of their CSR programs. Co-Chairs: Wojciech Arszewski, UPS Polska; Anna Jawor, IBM Polska.

Real Estate Committee

www.amcham.pl/infrastructure
Mission: To discuss issues of the development of infrastructure; to promote infrastructure solutions for cooperation between private and public partners. Co-Chairs: Krzysztof Wierzbowski, Wierzbowski Eversheds; Andrew C. Kapusto, Raytheon Homeland Security.

Infrastructure

www.amcham.pl/real_estate
Mission: To discuss issues regarding the complexities of the real estate market in Poland, and exchange information. To be an educational and networking forum for members and to lobby and influence legislative departments of the Polish government. Co-Chairs: Halina Wickowska, K & L Gates; John Baka, Colliers International.

Defense & Security

www.amcham.pl/defense

RELACJE ZDJCIOWE
niadanie biznesowe we Wrocawiu, str. 26 Biznes Mikser w odzi, str. 27 Spotkanie Miesiczne w Warszawie, str. 28 Spotkanie Miesiczne we Wrocawiu, str. 29 Wiosenny Biznes Mikser w Krakowie, str. 30 Biznes Mikser w kwietniu w Warszawie, str. 31

Mission: To serve as a platform for defense industry issues and exchange relevant information. The committee creates a networking forum and fosters a positive working relationship with the government and people of Poland. Co-Chairs: Paul Zalucky; Stan Prusiski, Sikorsky Europe.

Intellectual Property Rights

Mission: To advocate for IPR protection and provide leadership that will bring together interested partners; to share information with decision-makers and law enforcement. The police, judiciary, prosecutors, customs officials, legislators and journalists are among the target groups, while the curriculum of law schools should have more emphasis on IPR. Co-Chairs: Agnieszka Wyszyska-Szulc, Philip Morris; Anna Lasocka, aszczuk & Partners.

Small & Medium-Sized Enterprises

www.amcham.pl/sme
Mission: To provide a forum for exchange of ideas/best practices to improve the performance of SMEs; to identify and promote solutions to facilitate and support the managerial and operational efforts of SMEs through educational, networking or lobbying efforts that leverage the resources and knowledge of AmCham and its membership. Co-Chairs: Alain Bobet; Cezary Krasodomski, Cisco Systems.

www.amcham.pl/ipr

FOCUS
co najbardziej liczy si w promocji turystycznej Tomasz wiok, redaktor magazynu American Investor, rozmawia z Thomasem Schoenem, dyrektorem regionalnym sieci Starwood Hotels & Resorts w Polsce, str. 20 kobiety jako dyrektorzy finansowi Badanie firm doradczej Deloitte na temat postrzegania kobiet na wysokich szczeblach struktury zarzdzania, str. 22

Employee & Labor Relations

www.amcham.pl/labor
Mission: To create an information exchange forum of HR professionals to share, discuss and learn about the latest trends in HR management and influence local policy and decision-makers. Co-Chairs: Jolanta Jaworska, IBM Poland; Peter Strupp, United Business Development.

Marketing & Communications

Mission: To provide a forum for member firms to share knowledge and exchange experiences in marketing, communications and PR; provide educational and networking opportunities for member firms interested in these areas; and serve as an advisory body for AmCham. Co-Chairs: Anya Ogrkiewicz, Keryx Group; Michael Zawadzki, InterContinental Warszawa.

Tax

EKSPERCI
ue nakania do poprawy jakoci zarzdzania Konsekwencje globalnego kryzysu mog mie wpyw na regulacje dotyczce sektora prywatnego, str. 23 Wiele sposobw utraty danych Dane komputerowe mog zosta utracone z wielu przyczyn, ale istnieje take wiele sposobw na ich odzyskanie, str. 24 dugotrway efekt Szkolenia, aby odniosy podany efekt, powinny by dostosowane do specyfiki firmy, str. 25

DZIAY STAE
Briefing redakcyjny, str. 2 Informacje o firmach czonkowskich Izby, str. 5 Informacje o dziaalnoci Komitetw Izby, str. 9 Przewodnik po Komitetach Izby, str. 33

www.amcham.pl/marketing

www.amcham.pl/tax
Mission: To provide a platform for identifying tax issues and create an educational forum to keep AmCham members informed on current and upcoming legislation. To create a network to share information, comments and best practices. To lobby decision-makers in the government. Co-Chairs: Peter Kay, KPMG; Piotr Bartuzi, Bank BPH.

Energy & Environment

www.amcham.pl/environmental
Mission: To help members develop their environmental and renewable energy business and help learn about, identify and overcome difficulties connected with environmental laws, and develop a discussion forum among members about environmental issues. Co-Chairs: Adam de Sola Pool, Jerzy Chlebowski, Mitsubishi.

Outsourcing/High Tech

Telecom

www.amcham.pl/outsourcing
Mission: To provide a platform for discussing, identifying and addressing common SSC/BPO issues related to high-tech operations; to maintain contact with local authorities, educational and governmental institutions to present a unified business perspective and to suggest ways of possible cooperation. To identify the possibilities/areas of state assistance, to share experience and leverage knowledge. CoChairs: Marek Suczyk, Kroll Ontrack; Jacek Stryczyski, Lionbridge.

www.amcham.pl/telecom
Mission: To create a platform under the AmCham umbrella for the exchange of members ideas and views on trends in the telecommunications sector in Poland; to take steps to influence decision-makers in telecommunications legislation, policy and practice; to promote innovative trends in telecommunications; to modernize communications technology for business and the average Polish consumer. Co-Chairs: Jarosaw Roszkowski, Crowley Data Poland; Piotr Muszyski, TP SA.

European Union Affairs

www.amcham.pl/eu
Mission: To provide members with relevant information on EU-related issues, including EU funds, and to represent American investors before the Commission and the Polish government. Co-Chairs: Magdalena Burnat Mikosz, Deloitte; Jerzy Thieme.

American Chamber of Commerce in Poland 2011. All rights reserved.

American Investor to oficjalny magazyn Amerykaskiej Izby Handlowej w Polsce. Magazyn reprezentuje gos rodowisk midzynarodowego biznesu w Polsce. Celem magazynu jest dostarczanie czonkom Izby i innym czytelnikom aktualnych informacji na temat dziaalnoci Izby a take trendw biznesowych i polityce spoecznej firm. listy do rekacji prosimy wysya na adres poczty elektronicznej: tomasz.cwiok@amcham.pl

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AMERICAN INVESTOR

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