Issue No. 38

Contact Magazine Issue No. 38

Editorial Note 3

Shell Business Operations Kraków: dynamic development in the heart of Europe 4

Making the most of the first mover advantage 8

Export to Great Britain in the context of upcoming Brexit: Exchange rate, logistics, opportunities and threats10

BPCC advises Silesian automotive sector as to Brexit 11

The Future of Tax – 19 February 2019, British Embassy, Warsaw 12

Construction & Real Estate Breakfast, Westin Hotel Warsaw, 22 February 2019 14

Tax and finance – important for manufacturers too! 15

Scotland’s trade minister boosts Scottish-Polish relations at Burns supper 16

Chairman’s Note 17

GlaxoSmithKline’s European Finance Hub – further commitment to Poznań 19

BAE Systems presence in Poland 20

Cognifide - world leaders in experience technology 20

Beyond Brexit – Poeton’s Commitment to Poland 22

Imperial Tobacco. A place where great business meets great people 24

RICS in Poland 27

Brexit Update – The Implications for the Economy and Real Estate 28

Are Brexit preparations necessity or best practice is enough? 30

20 years in Poland 32

BBC Studios – bringing the best of British to Polish televisions 34

RSK: Environmental experts ready for Brexit 35

Responsibility and responsiveness 36

Bibby: British business attitude applied to Polish firms’ financial needs 39

Table of Contents

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Broadway Malyan’s Warsaw studio come of age 40

Lloyd’s in Poland – from syndicates to Lloyd’s Insurance Company 41

Flowcrete – CEE’s leading resin floor producer 43

Looking for talent in an employee’s market 45

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Editorial Note

Editorial note by Michael Dembinski and DorotaKierbiedź

Whatever the outcome of the UK’s Brexit-related turmoil, trade and investment betweenPoland and the UK will continue to flow.

According to both Polish and UK governmentstatistics, 2018 turned out to be a record year fortrade between our two countries. The tempo ofgrowth, however, was almost flat with both importsand exports barely rising over 2017. Anecdotalevidence from BPCC members suggests thatthose firms that export to the UK or import from theUK have been engaged in stockpiling from thesecond half of 2018, while firms not yet doingbusiness bilaterally have adopted a ‘wait-and-see’approach. It is unlikely that 2019 will see growth –after a seven-year run in growing bilateral trade.

With investment flows, it is harder to say. Onething is certain – British firms that have invested inPoland tend to continue to increase theirinvestments here, as they can see the value ofbeing present in the Polish market.

This issue of Contact Magazine Online, coincidingwith the deadline originally set when Theresa Maytriggered Article 50, is intended as an overview ofthe British presence in the Polish economy; themessage is “we are here – we intend to stay”.Looking at the illustrious histories

of many of the contributors, which in some casesgo back over a couple of centuries, there emergesa picture of continuity, tradition – provensustainability.

Two interviews open the issue; our chief advisorMichael Dembinski talks to three leaders of majorinstitutions present in Poland – AdamUszpolewicz, from insurance giant Aviva, andAgnieszka Pocztowska, who runs Shell’s sharedservices centre in Kraków, from where 4,000people provide business services to Shell aroundthe world.

Contributions from member firms come fromacross the sectors – from construction and realestate – architects Broadway Malyan andChapman Taylor, both established in the UK over60 years ago and present in Poland for nearly 20; Gleeds – a global property and constructionconsultancy established in 1885 by RichardGleeds who was one of the founders of the RoyalInstitute of Chartered Surveyors. RICS – whichhas over 300 members in Poland – has alsocontributed this article about how Brexit will affectthe UK property market).

A company that straddles construction andmanufacturing is Flowcrete, which makes resinflooring materials used in shopping centres, carparks, hotels and offices in Warsaw. Other UKmanufacturers present in Poland are ImperialTobacco and aerospace coatings specialists,Poeton.

Two British providers of financial services, whosecombined history totals over half a millennium –Lloyd’s of London (established 1686) and BibbyFinancial (established 1807) – businesses stillnamed after their eponymous founders; both firmsbrought innovative financial products with them toPoland.

In the field of environmental protection, we haveRSK, the UK’s largest – and Europe’s fastest-growing – consultancy operating in this area.

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BP, Poland’s number two when it comes to fuelstations, has contributed massively to Poland’seconomy in terms of jobs created, taxes paid andinvestment in infrastructure.

Technology and new media are a fast-growing partof UK investment in Poland. Known mainly as adefence-sector manufacturer, BAE Systems inPoland has set up a cyber operations hubemploying 200 people in Poznań. BBC Studios –as BBC Worldwide has become after its mergerwith BBC Studios – is bringing high-quality BritishTV content to Poland via its new channel BBCFirst. IT and content come together at Cognifide, aUK digital agency that started up in Poznań todeliver outsourced solutions in contentmanagement systems. The firm now has offices inLondon, New York and Bydgoszcz and employs400 people.

Until last we leave the company at the front line ofPolish employers’ biggest challenge right now –staff recruitment and retention. That company isHays, which recruits employees across mostsectors of the Polish economy, and is geared up totackle the issue with a technology-led strategy.

Shell Business OperationsKraków: dynamic development inthe heart of Europe

Agnieszka Pocztowska, general manager ofShell Business Operations in Kraków, talks toMichael Dembinski, the BPCC’s chief advisor.

The latest opening of a new, fifth, office in theShell Energy Campus in Krakow and constantgrowth in employment makes Shell one of thelargest employees and investors in theMałopolska region.

“Shell opened the business operations centre nearKraków back in 2006, when shared services andbusiness process outsourcing was just beginningto be present in Poland. Like several othercompanies, Shell decided to locate in this

unique place, full of the right talent, part of thegrowing economy of Poland. In the early stages ofthis journey, Shell began by bringing togetherrepetitive administrative work for the companyacross Europe, primarily leveraging the arbitrageon salaries. Given the currency conversion ratesand the economic competitive advantage, thismade good business sense back then. Yet thiswas the initial part of something that would grow farbeyond the simple back-office work that we startedoff with. It was an epilogue to an exciting journey ofgrowing an advanced, multi-dimensional business-centric hub, bringing operational excellence to anew level thanks to consolidation and synergiesbetween various parts of our business.

In-house over outsourcing

“The early stages of Shell’s presence in Krakówwere very much about the proof of concept. It wasa conscious decision to keep everything in-houserather than to outsource. Over the years, thisdecision has been fully justified. By maintaining ourown company culture, our values, we have createda sense of purpose that is difficult to replicate in theoutsourcing model, where people can be workingfor several different external clients. The in-housemodel has proved far more successful in an era oflow unemployment, when employers are fightinghard to retain their best talent. To win, you have tohave a strong organisational culture, strongemployer branding, and full control over your ownprocesses. This gives in-house businessoperations a huge advantage over outsourcedbusiness processes in an era of

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falling unemployment and rising salariesassociated with a rapidly growing economy.

As the dynamic expansion of ShareServices/Business Process Outsourcing industrywas continuing in Poland, we were welcoming newgenerations into the workforce. The shift ofgenerations, with Millenials’ sense of purpose anddesire for a proper work/life balance, meantresetting the understanding of what it means to bean ‘attractive employer’. Digital transformation isanother crucial change affecting the workforcemarket dynamics. Previously, when there weremany people available on the labour market it waseasier for many employers, but now you have tounderstand how to get the workforce you need andhow to keep them on board. Today, 75% of theworking population at SBO Kraków belongs to theyounger generations – how do we get them to staywith us? To recruit people, we offer a goodpackage, a great working environment, and thechance to grow and develop – in that order. Butwhen it comes to retention, number three becomesnumber one. Development and growth, thenpurpose, followed by salary and package. This isthe picture of today’s job market in Kraków.

Purposeful work

Shell Business Operations accountability spreadsacross 10 different business disciplines – fromclassic finance, to creative roles, customer facingwork, supply chain management – all for onecompany. This means we are able to offerinteresting career paths; we have a strong brandand backbone of values, and we send a clearmessage that we care for people. This manifestsitself strongly in the way we shape our culture –maybe this is a new factor – we are employee-centric – we put the employees in the centre, notonly to do the job with a focus on success andperformance, but ensuring that they do purposefulwork.” Shouldn’t the customer come first? “Yes,the customer pays the bill. But a happy employeeequals a happy customer – a happy and engagedemployee will mirror it in the way they treat ourcustomers, and we know that a top-class

customer experience drives strong commercialresults.

“If we go back to our origins as a shared servicescentre, we began as a European hub for financeand HR processes, consolidating operations basedpredominantly on cultural proximity and operationalefficiency. Since then, we have acquired a lot ofglobal accountability and deepened our directimpact on the business outcomes. Delivering fuelsto European Retail stations is coordinated fromKraków. Very sophisticated finance processes aredeveloped here for use by the whole companyworldwide. We deal with process design, we haverobotic process automation experts sitting here inKrakow – we offer expertise for the entireorganisation. We are starting to push out thefrontiers of what you can do in hubs – in Kraków,we have started doing external relations for Shell,legal support for our businesses, these are reallyfresh directions – we only started doing these lastyear. It works very well as we have a unique anddiverse pool of talent for all these new workdimensions, like internal communications, forexample.

It’s all about diversity!

“We work in 20 different languages in Krakow, wehave employees from 48 nationalities, this year wewill have reached 4,000 people. Diversity is one ofour big advantages, it’s something we embraceand celebrate. Our unique workforce comes fromacross Europe, from Africa and the Middle East,and South America. We sometimes require somevery niche skills – for example, coordinatingmarine logistics globally, for which we oftenresource globally.”

But what’s it like working in Kraków? “On the onehand, a beautiful, historic city, plenty of culture – onthe other, it’s known for its smog and congestion…Kraków is an ace in itself. It has a competitiveadvantage because it is Kraków, it has a veryyoung soul, its universities attract a multinationalgroup of students. Shell has a strong brand amongthe student community. For a lot of young people,

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Kraków is a nice place to be and live and work.Living in Kraków is a great package, it’s becomingmore and more attractive to people from westernEurope. This at first seems surprising given thedifference in salary levels, but then living costs arerelatively lower and job security is higher than insay, southern Europe, thanks to the growthdynamic of the Polish economy. Poland’s can-doattitude is a plus. And then there are family storieswith mixed nationalities, which act as a lever. Theresult of having a workforce consisting of 48different nationalities, is that we have differentperspectives.

Towards sustainability

The perception of local challenges whether it isabout the smog or the usual suspects like trafficand roads congestion, often differs significantlyamong our employees as it is very much driven bytheir own perspectives. While for many, Poland isthe centre of the EU – ‘the West’, you will also finddifferent views from staff originating from West andNorth of Europe, where socio-economic growth ismore advanced. The same applies to awarenessabout what is meant by a ‘sustainable city’ and‘good quality of life’.

“This brings us on to the subject of environmentalchallenges. The shadow over Kraków is the air –being in a valley is not helpful in overcoming thesmog. Kraków is a good size for a city, it isconvenient and comfortable, but the quality of lifedeclines when there’s smog. How can we as a bigemployer make people aware of how many thingshave already happened to improve the quality ofair? Someone who joined us a year ago doesn’t’know how much progress has occurred over thepast 10 years. As a business, it is in our interest tomake Kraków a success, to promote and help thecity. We have almost 4,000 ambassadors of thecity – our own employees. We are promptingpeople to use their cars less – estimates show that40% of the smog comes from road traffic. The restcomes from buildings and industry. Now, oftenKrakow has more stringent standards regarding airquality than do surrounding municipalities, and it isfrom these that much of Kraków’s smog rolls in.Shell wants to engage with local authorities andcitizens as to how to alter their behaviour, to helpthe city, and to talk about improving the quality oflife for everyone.

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Young and talented

“As they start work, young people are on importantjourneys in their lives. It is only natural that theylook into new experiences and want to change theirjobs to gain new, fresh perspectives. Retention isa key performance indicator for us as we want toobviously keep the talents on board. According toour data, there is a several percentage pointsdifference between us and the market when itcomes to attrition. We believe this is the healthyrate. We offer different retention programmes atvary levels; you need different approaches when itcomes to retaining graduates vs retaining peoplewith 10 years’ experience. Building strongleadership founded on inclusiveness, respect andwith the right gender balance requires targetedmentoring, coaching and consequent educationabout the company values.

“We start early with our student ambassadorprogramme, we build the Shell brand on thestudent campuses. We offer more than 120 paidinternships a year – real projects, which can leadto serious jobs. Many interns stay on or comeback to us when they complete their studies. Weare active at university career fairs, and weconduct many initiatives across multiple channels,digital channels such as Facebook where we haverun successful campaigns. We also work withprofessional organisations – in finance, inprocurement, with the Chartered Institute ofPurchasing and Supply, with the CharteredInstitute of Management Accountants or theAssociation of Chartered Certified Accountants, forexample.

To be successful, we have to adapt to the Polisheducation system, where the majority of studentsgo on to complete Master’s rather than Bachelor’sdegrees. On the one hand, this results in a vastpool of talented graduated that we are able toattract to work with us. On the other hand, schoolleavers might not always have the language skillsneeded. But above all, when assessingcandidates, we look for competence, accountabilityand experience; we do

not shut the door to someone without a degree.People are generally successful if they have theright attitude, and we have to assess that potential– and commit to that person and offer a career, notjust a job. Career progression and succession atpoint of entry is extremely important if we’rethinking about effective retention and long-termsustainability of our business

What’s next?

The Polish labour market has hit an importantbarrier. In January 2019, for the first time, theemployment rate has stopped growing. Thisstrongly suggests that it will become even moredifficult to recruit people. What are the new optionsfor companies like Shell?

“Working more closely with technical andvocational schools – businesses are beginning toexplore this, but taking on high-school leaversrather than graduates is something we might needdoing more actively in the future. Today’seducational decisions of tomorrow’s workforceraise valid questions as our society gets older.Also languages will continue to be key as weoperate in a globalised world. We have a lot of jobsthat require languages, yet all our jobs requireEnglish. English is no longer the remote idea that itused to be. In today’s world, every child hascontact with English; because of the digitisation, it’sthe global language by default. But if you find agreat talent – an expert in a given field, but one whohappens to have a deficit in language, it’s not aproblem, it’s something that can be

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managed. However, the socio-economic trends ofthe workforce require the educational system toadapt more quickly and this journey needs to startnow. Looking at other groups – how about 50+women? “Shell has on average created 1,000 newroles a year for the past two years in Kraków. Weare facing adverse demographics, and the bigquestion is how to effectively activate the lesswork active parts of society, for instance thoseaged 50+ or people with disabilities. We work withvarious foundations, offering upskilling courses wehave a modern office providing comfortable workconditions for all, yet the results are mixed and Idon’t think this is an internal issue. It`s a theme thatneeds to be structurally managed both by theemployers as well as the regulators. For us it`sabout leveraging the talent of this part of theworkforce and it`s about our strong social licenceto operate, to be seen as a valuable member of thesociety.”

photos taken by Przemysław Kuciński

Making the most of the first moveradvantage

Adam Uszpolewicz, CEO of Aviva in Polandtalks to Michael Dembinski, the BPCC’s chiefadvisor.

“Aviva came to Poland quite early after the fall ofcommunism. This gave us first-mover advantage– we opened our offices in 1992 as one of firstinsurers coming from abroad to get a Polishinsurance licence. We quickly gained scale,starting with life insurance. By the end of the1990s, we started to add on other businesses likegeneral insurance – motor, home, travel andcommercial-lines business. We added a pensioncompany in 1999 at the time Poland undertookpension reform; again, we had first-moveradvantage, quickly becoming number one in thatspace. At the turn of century, we set up aLithuanian subsidiary of Aviva Poland.

Ten years ago, we created what is now Santander-Aviva bancassurance joint venture tailored forcustomers of Santander bank. And finally, threeyears ago, Aviva acquired Expander, a network offinancial advisers, that advise customers on thebest solutions for them in terms of loans,investments and other financial instruments.Expander collaborates with 20 different banks.

“Today Aviva has seven licenced entities in Polandand Lithuania, employs 1,600 people directly and afurther 4,000 indirectly as insurance agents andExpander advisers. Last year, Aviva made 950mzłotys operating profit across all our businesses inPoland – that’s over £200m. We are the largestfinancial institution in Poland with British roots. Across the Aviva group, only the UK, Canada andFrance are bigger businesses, Poland is a strongnumber four. Each year somewhere between 7%and 10% of Aviva’s global results in terms of profitsor cash contributions comes from Poland. We area significant player in the Aviva family. We areseen as a big economy with good prospects.

Plans for the future?

“Our plans are to grow our existing businessesorganically and to grow through acquisition.Employees’ capital plans (PPK or pracowniczeplany kapitałowe) are important and a veryinteresting opportunity for us. From next year, allseven million eligible employees across Poland willbe able to take part in PPKs. A significant part ofthis market involves our group life business whichsells life insurance products to employers; wehave our own sales network, we visit and educatecompanies about what those pension plans are,and once the programme starts, we should beselected as a PPK provider by a good portion ofPolish employers.

Then there is digitisation. This goes across all ofour businesses. In general, Polish insurers aresignificantly behind Polish banks when it comes todigital offering. Only 5% of general insurance and1% of life insurance business is done online asend-to-end digital sales. This will change

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as a young generation comes onto the market,who are used to dealing with everything via theirlaptops or smartphones. Aviva aims to be thedigital leader, with all of its products availableonline. Set up in April 2017, MyAviva is a digitalplatform where our consumers can manage alltheir products – life and general insurance policies,pensions and asset management. ThroughMyAviva, customers can buy and renew theirpolicies, make claims, request pay-outs, check thevalue of their investments. We have been investingin this platform for the past two years. If we look atnon organic growth – the Polish insurance marketis made up of around 70 companies; it is acrowded market, too big for the size of thepopulation. A number of companies will be exitingthe market and we consider ourselves to be aconsolidator. We want to acquire competitors in thegeneral insurance area, as we’d like to balance ourportfolio where at present we have more lifeinsurance than general.

In terms of how the Polish economy isgrowing, where are the challenges and whereare the opportunities?

“The Polish economy has been developing verystrongly since 1990, in particular after Polandjoined EU. This growth has completely changedhow Poland looks today. In the early 1990s, veryfew could afford our products, now the financialbarrier is less of a problem. Rather, it is therelatively low levels of financial education if wecompare Poland to the UK. The Polish economy isquite robust – it is based on large numbers ofprivately owned small- and medium-sizedbusinesses. There are not too many nationalchampions around – and most of these arecontrolled by state. The fact that Poland did notexperience recession due to the global financialcrisis in 2009, is down to a large part to thosePolish SMEs; they are very flexible in allocatingresources and investment, they can quickly adaptto the changing tastes of consumers, they are veryagile and they make the Polish economy soresilient. As Poland grows its foreign trade, thePolish economy becomes

more and more dependent on what goes aroundus. We are unduly dependent on the Germaneconomy; many of the small Polish familybusinesses manufacture parts for cars, furniture,electronics, household appliances that areassembled in Germany, so our dependence on theworld around us is growing as the Polish economybecomes increasingly integrated into global supplychains. Yet I believe that the strength of thoseSMEs will withstand any shocks. I see Poland’seconomy growing this year at between 3.5% and4.0%.

“The biggest threat to Polish economy mayemerge from the fiscal policy, in particular fromfunding of planned social programmes. Yes, thegrey sector is shrinking, due in part to theintroduction of the single audit file – tax (JPK), butthere is an increasing fiscal pressure; the taxablerate, inter-company transfers, more restrictions onwhat can be classed as business expense to beoffset against corporation tax. The asset levy onbanks and insurance companies has doubled ourtax bill since 2015. These measures are nothelping the economy to grow. So far, we havemanaged to maintain healthy financial position, butthere are some warning signs that this fiscalpressure might hurt – and customers will pay forthat. We’re trying to avoid price increases on ourinsurance products, but it is a competitive market.Of course, if everyone is suffering from the samefiscal burden, they will end up passing on to thecustomer in time.

“Looking at Brexit, Aviva in Poland will not bedirectly affected, as the Polish business isregulated by the Polish financial watchdog, theKNF. However, with the UK out of the EU, we willneed a second EU regulator; it is likely that Francewill become the so-called lead regulator for Aviva’sEU companies. Aviva’s business in Ireland willhave been more affected by Brexit. In general, theUK will face a long slow decline in its financialservices sector after Brexit. It won’t happenovernight as the infrastructure – the laws, theskills, the contacts, the people – that you find inLondon cannot be replicated instantly.

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For Dublin, Luxembourg, Paris or Frankfurt to growto London’s current stature will take time.However, unless the UK finds new sources ofbusiness in financial services outside the EU, itsbalance of trade and current account will suffergreatly. This scenario might not materialise if Brexitturns out to be softer and if part of the agreement ismaintaining the UK’s access to the single marketin financial services. Today it looks like the UKwants to leave the single market… it’s difficult toforecast in this space.

Looking ahead at future developments in IT,how are they affecting insurance sector?

“In addition to the front-end that interacts digitallywith our consumers, there is the back office; thereare several areas where change is happening. Bigdata, for example. We have a whole team of datascientists looking at our own internal data that wegenerate and also at external data. For example, inthe old days, to give a quote for home insurance,we’d ask a lot of questions about the place,address, what kind of roof it has, whether thebuilding is more than 50 years old. At the momentour algorithms just need to know where you live.They can deduce how close you are to fire station,to an industrial facility, to busy roads, rivers – allthe factors that are related to damage to a property– and what it would cost to rebuild. The only thingwe don’t know is the exact plan of your house; weask which floor you’re living on and the number ofsquare metres. And we’ll give you price.Everything else is in databases.

“Another example, we’ll be launching soon a newway of quoting motor insurance where you scanthe registration document of your car with yourphone. All of the data is there, we will automaticallycontact databases of your claims history and willbe able to give a quotation for your car. Complexalgorithms will work out your premium precisely.We launched black boxes in cars in UK, but webacked out because we concluded that whetheryou are an aggressive driver or more subdueddriver is not a good indicator of whether you’ll havean accident. Telemetrics is more a marketing tool.

So many factors are involved in an accident, otherparties’ role is too significant. We do have an appthat customers can download – it gives you theability to rate your driving, how good a driver youare.

Is recruitment and retention an issue for Aviva?

“Just like everyone else, we face the sameproblem – it is difficult to recruit talented people toour organisation. Tech is difficult, as are actuarialsciences – the two most important areas wheregaps exist. We are quite lucky, a few years ago itwas difficult to attract such talent to the insuranceindustry. The changes in the way our organisationis perceived by young people is the result of three-four years of employer branding work. Aviva is themost desirable employer in insurance and in theTop 100 of all employers in Poland. We offerflexible working hours and encourage work fromhome. We now have an award-winning office, withflexible and friendly open space, with facilities formeetings, relaxing and eating; a 700m2 terracewhere people can work, loft space – this doesn’tlook like financial services at all! We are investingin image of dynamic innovative company, we offeryoga, sports, external speakers. It’s a space whichtalented people don’t view as an old boring financialservices space, but a living space with extra-curricular activities, training programmes, opendays. For example, we organise digital daysshowcasing what tech can do these days, electriccars, VR, talk to experts in digital development.Those things have paid off, we’re lucky that peopleconsider Aviva one of those names where it’sworth spending part of their careers. This has beena big success story for our HR people.

Export to Great Britain in thecontext of upcoming Brexit:Exchange rate, logistics,opportunities and threats

According to the current arrangements onMarch 29, 2019 UK will leave the EuropeanUnion.

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Despite the ongoing attempts to regulate the exitprocess, the final shape of Brexit is still uncertain:deal, no deal, second referendum, change of date?

On February 19th, an advisory meeting was held inKrakow to explain the Brexit process and itsconsequences for Polish entrepreneurs exportingto United Kingdom. During the meeting, marketexperts from three key areas affecting exportpresented their opinions and advised on how toprepare for Brexit:

exchange rate and its forecast - presentation byJakub Łańcucki from Ebury Polska

ogistics and continuity of supply - presentation ofKrzysztof Łukoszyk from the Raben LogisticsPolska

analysis of the situation vs. running a business, aswell as legal and tax issues - presentation ofSebastian Swałdek from Capital Business Links

All three presentations can be viewed in theattachments,

We thank Mr. Sebastian Swałdek from CapitalBusiness Links for moderating the meeting andEbury Polska for providing sponsorship of theevent.

BPCC advises Silesian automotivesector as to Brexit

With a month to go until the UK is scheduled toleave the EU, the uncertainty regarding theterms of the departure is causing great concernto Polish exporters.

The automotive sector being the number onecategory of Polish exports to the UK is particularlyexposed, mainly because of the just-in-time natureof its deliveries to UK customers, be they carmakers or suppliers who buy components fromPoland.

The BPCC was invited to address a seminar forthe Silesian Automotive & AdvancedManufacturing cluster (SA&AM) at the Logistexevent at ExpoSilesia on 28 February. The eventwas chaired by Luk Palmen, SA&AM’s innovationand cooperation manager and opened by UrszulaKwaśniewska, the BPCC’s Kraków office director.The chamber’s chief advisor Michael

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Dembinski was joined by Witold Janusz, head ofLloyds of London in Poland and KrzysztofŁukoszyk, Raben Group’s business developmentmanager.

Mr Dembinski explained the current politicalsituation and the reason for the continueduncertainty as to the final Brexit outcome, andadvised exporters to take a view as to whetherthey should invest in measures to mitigate theeffects of a hard (‘no-deal’) Brexit, which includesamassing new paperwork needed for exporting toa third country after 30 March, or to do nothing andhope for the best – a deal is reached with a 20-month transition period, or Brexit is delayed orcancelled. Both strategies involve risk, wastedeffort or unpreparedness for a new and difficultsituation.

Mr Janusz talked about risk mitigation –particularly important in the automotive supplychain, where much can go wrong betweenproducing parts and a fault-free car being driven byconsumers. He mentioned the role of insurance, inareas such as business continuity and productrecall.

The crucial role of logistics in just-in-time deliveryin a post-Brexit scenario was presented by MrŁukoszyk, who explained just how vulnerable UKcar-makers were in terms of hold-ups at theChannel ports. He listed the new paperwork thatPolish exporters would require – an EconomicOperator’s Registration and Identification number(EORI), without which VAT refunds would not bepossible, and Country of Origin certification. Hesaid that obtaining an EORI number – even online– takes up to eight weeks. Exporters should alsobe aware of tariffs, and explained how they can findout WTO tariff levels for their products online.

The UK is likely to begin a process of divergingfrom European standards after Brexit, and thatwould mean new certification, with the familiar CEmark disappearing from the UK, to be replaced byUKCA (UK Confirmity Assessed). TomaszRomanik of Dekra explained how the new

system would work, and what Polish firms wouldneed to do to be compliant in the UK after a no-dealBrexit.

Logistics hold-ups at the ports can be avoided bythe costly option of air freight; Paweł Wojda fromGTL Katowice Cargo Airport explained thecircumstances in which this be attractive. MrDembinski pointed out that niche car maker AstonMartin has stipulated air freight delivery for itssupply chain post-Brexit, but that such as solutionwould not be practical for volume manufacturers.

After a coffee break there was a panel discussionmoderated by Luk Palmen, in which speakerswere asked whether Brexit would bring about newlogistics models for Europe. Mr Dembinski saidthat it was worth watching the foreign exchangemarkets, in particularly the pound-złoty rate – andindeed the UK bookmakers, registering the‘wisdom of the crowds’. He said that while a hardBrexit was still favourite among those betting, theodds had lengthened in just four days from 7-2 to9-2, while the odds of Mrs May achieving a dealand leaving the EU by 29 March were just 6-1.

The Future of Tax – 19 February2019, British Embassy, Warsaw

A fascinating exchange of best practicebetween the UK’s tax authority, Her Majesty’sRevenue and Customs (HMRC), and the PolishMinistry of Finance, centred around the way inwhich tax offices communicate with tax payers,and the role of digital technologies in makingtaxpaying simpler.

The ease, predictability and transparency of payingtaxes is as important to global investors as

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the actual tax rate. The World Bank’s latest DoingBusiness report for 2019 says that in the UK, atypical medium-sized firm (60 staff) will spend 105hours a year filing VAT, CIT and payroll taxes (thefourth-lowest in the EU); in Poland, the same sizedfirm will spend more than three time as long – 335hours. Of all EU economies, only in Bulgaria (427hours) is the administrative burden higher.

How is Poland doing in terms of making its taxsystem more user-friendly? Poland has recentlyundergone a major shake-up of its tax system,introducing Single Audit File – Tax (SAF-T) for allVAT payments, as well as introducing voluntarysplit payment of VAT for B2B transactions. Real-time reporting of fiscal cash registers will beintroduced this year for some sectors where cash-in-hand transactions often go unreported anduntaxed. This is all leading to extra work forbusiness owners.

The intention of the conference, which attracted afull-house with many CFOs and finance directors –and Polish tax-office directors too – was to showhow HMRC has changed the way it treatstaxpayers (they are now called customers) throughthe introduction of clearer communication anddigital solutions. Richard Hawthorn, deputy directorof Customer Communication Services, at HMRCexplained how the UK tax system has evolvedover the past 20 years, focusing on thesignificance of predictability and transparency.Starting by setting out HMRC’s mission andstrategic objectives, Mr Hawthorn provided cost-benefit case studies of how the amount of taxcollected increased when the communicationimproved. One example that appealed to the Polishaudience was the bespoke breakdown of how anindividual taxpayer’s taxes were spent by the UKgovernment.

Mr Hawthorn joined the first panel, moderated byMichael Dembinski, the BPCC’s chief advisor,along with Michał Zdyb, head of tax at KR Group,Dariusz Wasylkowski, tax partner at Wardyński &Partners law firm, and Dr Leszek Syguła, directorof the Analysis Department

at the Ministry of Finance. Dr Syguła impressedparticipants with his overview of the currentreforms being introduced into the Polish taxsystem. One huge simplification for individual (pay-as-you-earn) tax payers in Poland is the ability toconfirm simple tax returns (where there is oneemployer and no change in status in the tax year)with just two clicks. The new system had half amillion visits in the first 48 hours of operation (out of22 million taxpayers to whom it is relevant). Therewas a general consensus among the audience thattax paying in Poland is getting easier, althoughthere are still problem areas. Mr Zdyb highlightedthis issue by mentioning a client who had receiveda tax judgment stretching to 230 pages. The key toclarity, he said, was cutting out all unnecessaryverbiage from tax communications. MrWasylkowski spoke about the importance of taxmediation and alternative dispute resolution, whichcan help tax offices and tax payers reach asettlement far quicker (and cheaper) than goingthrough tax courts. This is a solution that workswell in the UK. Dr Syguła also perceived it assomething that could bring improvements andease the backlog of tax cases in the courts.Talking about the communication between the taxpayers and tax offices, the speakers alsoacknowledged that the responsibility for the lengthof the letters and complexity of argumentation isshared – the longer the letter from the tax office,the more extensive the response from the taxlawyers and accountants representing thetaxpayer. The panellists discussed the lack of trustbetween taxpayers and the tax offices as well –very often the first question arising after receivingcorrespondence from the tax office is whether thecontent needs to be checked against the real stateof the matter or the tax law. But as Michał Zdybunderlined the spirit of cooperation is crucial. Weshould not think of the tax system as a normal partof business activity. It could be a valuable sourceof information for the businesspeople on thereliability of their business partners. Being able toaccess statistics on how the tax revenue is beingspent – a usual practice by HMRC – would alsohave a potential to change the tax payers’perception of the tax collection.

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The second presentation, by James Low, HMRC’scontent design lead, looked at the UKgovernment’s journey to provide all governmentservices via one website (gov.uk), regardless ofwhich department or agency provides it. Workstarted in 2004 with the Directgov website forcitizens and the BusinessLink website forbusiness; the two were amalgamated over timeand unified on the gov.uk site together with all othergovernment department sites by 2014. GOV.UKand all new UK government services created since2013 are designed to ensure mobile access togovernment services via smartphone, tablet,laptop and desktop devices – making them asaccessible as possible to UK citizens andbusinesses.

The second panel consisted of James Low, DrSyguła representing the Polish finance ministry,and Piotr Ciski, country manager of Sage Poland,a leading supplier of accountancy software toPolish SMEs. Mr Ciski explained how his firm hasan important – and unpaid – role in educating thesmall Polish taxpayer in the changes beingintroduced into the tax system, and the importantwork carried out by tax agents to whomentrepreneurs often outsource filing their taxreturns. Dr Syguła fleshed out the Polishgovernment’s approach to further digitisation oftaxes and cooperation between ministries,coordinated by the Ministry of Digital Affairs,towards creating a gov.pl portal.

The panellists talked about the challenges thatdigitalisation brings as well – the enormousvolumes of data collected that has to beprocessed, and the threat of digital exclusion thatsome people or companies can face. Mr Ciskiunderlined that with the growing number of digitalsolutions in the tax field, more and more SMEs thathire external accountants to take care of theirtaxes, but the role of those external providersgrows and changes as well – from purebookkeeping to more sophisticated finance. JamesLow admitted also in the UK there is a group oftaxpayers that struggle with the digitaltransformation and it’s important to adjust the

means of communication to all groups among taxpayers.

The underlying rule of the HMRC is Getting taxright, for everyone. As Mr Hawthorn said at thevery beginning, the design of the tax system isalways a trade-off between simplicity and fairness.In seeking to obtain the optimal balance betweenthe two, communication is key.

The BPCC and its members value the bestpractice from the UK, provided to us by the HMRCguests. Thanks to the tax expertise of the contentpartners of the project – KR Group, Sage andWardyński & Partners, the BPCC will be able topresent some UK best practice recommendationsfor the Future of Tax.

Construction & Real EstateBreakfast, Westin Hotel Warsaw,22 February 2019

BPCC members from the construction and realestate sectors got together with their oppositenumbers from the Scandinavian PolishChamber of Commerce to discuss prospectsfor Poland’s built environment in the short- andmedium term.

Five initiating speeches kicked off proceedings,covering different aspects of the sector. EwelinaKałużna, leasing and asset management director,of Skanska Property Poland looked at the marketfrom the perspective of the developer andcontractor, Skanska’s business in Poland beingsplit 50/50 between the two activities. JarosławSzwankowski, managing director of insurer DualPolska looked at how the construction and realestate sectors insure their activities in Poland,outlining the spectrum of cover offered, fromaccident & health to title insurance – mitigating therisk that having bought a plot, there will be arestitution claim on it. Maciej Wójcikiewicz, anRICS registered valuer and head of valuation atCBRE, said that last year’s €7 billion transactionson the Polish market was

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a record year. He highlighted the industrial,warehousing and retail markets, in particular inPoland’s third-tier cities, as being of interest toinvestors, many of whom were from Asia or theMiddle East. Robert Kamiński, director ofBroadwayMalyan in Poland, spoke about thechanging face of retail, driven by increasing onlinesales and a trend towards offering more than justshopping in retail spaces. Refurbishment of ageingshopping centres now focus around food and drink,entertainment, brand experience and ‘bricks-and-clicks’ or ‘pick-and-collect’ retail models.Meanwhile, office developments are now expectinga similar standard of quality to that found in hotels.Finally, Tomasz Ciesielski, director of real estatefinance at BGZ BNP Paribas reiterated the pointabout the diversity of investment finance coming toPoland, no longer just from the EU and US, butfrom South Africa and the Far East. For them,Poland is seen as a safe, low-risk market, withyields higher than in Western Europe, he said.

The five short speeches initiated the morning’sdiscussion, moderated by the BPCC’s chiefadvisor, Michael Dembinski. Representatives fromreal estate and construction firms from bothchambers had the opportunity to set out how theysee current market conductions unfolding andwhere future growth is likely to come from. Thenext budget cycle will result in a squeeze on yields;new project budgets are reflecting rapidly risingland prices, material costs and the tight supply ofskills on the labour market. This will push up pricesof completed buildings; while there’s an over-supply of vacant, high-quality space, rental incomeis not expected to increase. When asked whetheranyone in the room was currently involved in apublic-sector project, not a hand went up. Thissuggests that buoyant private-sector marketconditions and the risk connected with doingbusiness with the Polish state had put off foreignconstruction firms. The result of poor tenderpreparation and project management is that thePolish taxpayer will be paying more for work oflesser quality as foreign bidders avoid carrying outpublic-sector projects. Public procurement inconstruction will be the subject of a future BPCC

event.

Tax and finance – important formanufacturers too!

The BPCC’s Manufacturing Industries groupmet in Rzeszów at McBraida factory on 12March 2019, for a meeting aimed at CFOs andfinance directors of manufacturers. The aimwas to look at tax and finance issues facingmanufacturers in Poland.

The host of the event, Mariusz Małachowski,business development manager of McBraidaPolska, gave a presentation introducing the firm toparticipants. The third-generation family-ownedbusiness was established in Bristol in 1954 andhas over 60 years’ experience in the aviationsector. Five years ago, it opened a secondmanufacturing facility, in Rzeszów. Its main clientis Rolls-Royce, however, since opening theRzeszów plant, McBraida has rapidly beenexpanding its customer base. Growing its turnoverand employment at 20% a year every year sincethen, the firm specialises in obróbka of difficult towork materials, such as titanium.

The main presentation of the day, from KPMG taxexperts Mirosław Michna and Agnieszka Sułecka,focused on the latest changes to the Polish taxregulations, which are potentially threatening toforeign-owned businesses in Poland and theirboards of directors. The withholding tax (WHT)regulations mean that corporation tax must be paidat a set rate up-front each month, and at the end ofthe tax year, firms can make a claim back taxrefunds on the basis of legitimate business costs.For multinational firms wishing to offset businessexpenses such as trademarks, consultancy orknow-how, will have to prove that these arelegitimate expenses and not aggressive taxavoidance measures, and that profits flowing fromthe Polish subsidiary reach the ‘beneficial

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owner’, rather than an intermediary.

Participants of the meeting expressed concern atthe new sanctions that could befall financedirectors of Polish subsidiaries who sign offinvoices from head office, which could beconstrued as having hallmarks of profit-shifting.

Krzysztof Ślęzak from the Euro-Park Mielecspecial economic zone, outlined the newincentives offered by the Polish state to investorslooking to set up production in SEZs after thechange in the law, making all of Poland one SEZ.The new conditions for eligibility for tax breaks arenow more about meeting criteria proving a highdegree of value added through innovation, ratherthan just about job creation within the zones.

Patryk Borzęcki from the European Bank ofReconstruction and Development (EBRD)introduced the bank and its mission to supportinvestment in innovation across three continents.Aerospace is a particularly interesting sector, hesaid, outlining some case studies of how Polishand international firms have found complimentaryloan financing from the EBRD.

To close the substantive part of the meeting,Michael Dembinski BPCC chief advisor gave ashort briefing on the current status of Brexit that isto happen in about two weeks time. He outlined thepossible scenarios depending on how Parliamentvotes. The briefing raised a number of questionsabout logistics from manufacturers who shipaerospace parts and raw materials to and from theUK. Mr Dembinski also advised participants onwhere to find the latest information on Brexitscenarios and the new formalities that would arisein the eventuality of a hard ‘no-deal’ Brexit.

Then there was time for a factory visit, seeing theprecision manufacturing of parts that wouldeventually end up in aircraft engines.

Scotland’s trade minister boostsScottish-Polish relations at Burnssupper

The BPCC celebrated the life and works ofScotland’s national poet on 23 January 2019 inthe presence of Scotland’s Minister for Trade,Investment and Innovation, Ivan McKee, andBritish Ambassador, Jonathan Knott.

Partners

This year’s Burns Night supper was promoted tothe status of a BPCC gala event, marking thehighlight of the chamber’s social calendar for thewinter 2018/19 season. Held this year in the BristolHotel’s Chopin Ballroom, the traditional celebrationprovided an opportunity to build economic andpersonal relations between Poland and Scotland.Above all, the cultural and historical links betweenthe two countries are important – Scots have beenpresent in Poland since the 16th century, Poles inScotland since WW2. The tradition of the BurnsNight supper has been upheld by the BPCC formany years, now emphasising the friendshipbetween the two nations.

The evening began with words of welcome fromBPCC chairman Tony Reczek and AmbassadorKnott, after which the Guest of Honour – as ever,the Haggis – was piped in by Tomasz Ujma of theCzęstochowa Pipes and Drums, after which thegathering toasted the Haggis by raising a glass ofUisghe Beathe (the water of Life – Black LabelJohnny Walker, provided for the occasion bysponsor Diageo). Burn’s Address

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to a Haggis was vigorously recited by Iain Leydenfrom Europtima, as he plunged the skean dhu intothe haggis’s groaning hurdies.

Dinner commenced after Ambassador Knott saidthe Selkirk Grace. Cullen Skink soup was followedby a main course of lamb shank. The keynotespeech was delivered by Ivan McKee, who spokeabout the value to Poland that Scottish businesscan add, in sectors such off-shore wind energy,food & drink, FinTech, advanced engineering andlife sciences. In the 15th and 16th centuries,30,000 Scots lived in Poland, he recalled. “Twocountries linked by shared values and a love offreedom and social justice. Old friends should domore trade together!”

The Immortal Memory of Robert Burns waspresented by Scotland’s trade envoy to Poland,Martyn O’Reilly, who summed up the life and timesof the great poet. Several of his poems were readout – in Polish as well as in broad Scots. The Toastto the Lassies came Tony Reczek, while the Replyon Behalf of the Lassies was delivered by ElżbietaPełka, who used it to deliver an impassionedpromotion of female leadership: “if LehmanBrothers had been Lehman Sisters, the crisis of2008 wouldn't have had to happen.” MartynO’Reilly concluded by singing A Man’s A Man ForA’That and raising a toast to the immortal memoryof Robert Burns, after which everyone joined in aspirited rendition of Auld Lang Syne – probablyBurns’ best-known work across the English-speaking world.

After the official celebrations were over, there wastime to sample some of the very best Scotchsingle malts available in Poland, courtesy ofDiageo, including the magnificently sublime 37-year-old Port Ellen.

The BPCC would like to thank the evening’ssponsors, Scottish Development International,HSBC Bank Polska, Diageo Polska, BritishAutomotive Centrum, authorised Jaguar LandRover dealer, and the Bristol Hotel for hosting thisevent

Connection between Jaguar and Scotland

The legendary Scottish motor-racing team EcurieEcosse (which means 'Scottish Stable' in French)won the world-famous 24h Le Mans race, twoyears running in 1956 and 1957, in D-TypeJaguars. The D-Type was the forerunner of theiconic E-Type and the present-day F-Type.

Chairman’s Note

By Antoni F. Reczek, OBE

As I write, the UK is potentially four days awayfrom what may be its biggest mistake since theSuez Crisis in 1956. I refer of course to Brexit.

I refer of course to Brexit. In theory, the UKparliament has this week a number of choicesfacing it, ranging from revoking Article 50; asecond referendum; accepting the government’sproposed agreement or leaving the EU withoutagreement. It is chilling to reflect that despite theEU’s conditional extension of the leaving date to 12April, the only legally binding regulation on thestatute books is that the UK will leave the EU onthe 29 March. There will be attempts to findconsensus in Parliament around a process that willavoid a no-deal Brexit. However, it is still far fromcertain as to how matters will develop as astubborn blocking minority still has a no-deal exitas its preferred solution. While Brexit in itself is adisaster for the UK, a no-deal Brexit will becatastrophic. It is hard to believe that the UKGovernment has spent two years since triggeringArticle 50 failing to negotiate an agreement thatcould achieve Parliamentary acceptance. This hascaused a constitutional crisis with Parliamentmoving to take over the decision-making processfrom the executive.

The cavalier disregard for truth, logic and accuracydemonstrated by many leaders of the Brexitreferendum campaign is coming home to roost.Trillions of pounds of financial sector

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assets have been moved offshore as have tens ofthousands of jobs. Uncertainty and strategicrelocation have stalled both local and foreigninvestment and consumer spending has fallen.There is a wide consensus among economists thatthe UK economy is now around 2% smaller than itwould have been without the Brexit decision.

Quo Vadis? On the basis that Brexit happens withthe current agreement, we are faced with severalyears of negotiations on future arrangements.Hundreds of individual agreements need to behammered out between the UK and EU, coveringeverything from civil aviation to academiccooperation, from security to mutual recognition ofstandards, from transport of radioactive materialsneeded for cancer treatment to protection ofgeographic designations (such as Scotch whisky).

The government’s deal precludes membership ofthe Customs Union or membership of the singlemarket. The ambition of the PM is to negotiate adeal similar to the deal Canada negotiated with theEU in 2014 whereby 98% of all tariffs areeliminated. If this can be negotiated it will takeseveral years; in the meantime, the economysuffers. Completely unrealistic plans to quicklyreplace EU trade (accounting for 44% of UKexports and 53% imports) with global bilateralagreements have so far failed miserably. Onlythree agreements have been signed – all with tinyisland states. So far, only one of the 49agreements described by the UK government asbeing crucial (Switzerland) is anywhere nearcompletion.

Brexiteer bravado that a no-deal Brexit could bemanaged with WTO tariffs is more of the fantasy.Only three countries trade on an exclusively WTObasis – Southern Sahara, Mauritania and theVatican... The UK has submitted its proposedtariffs to the WTO (a copy-paste of the EU tariffs)but several objections have arisen, so no schedulehas been agreed as yet. That is not to say thatWTO tariffs are particularly desirable. Export tariffsthat the UK will likely have to suffer under a WTOregime include 10% on food drink

and tobacco;70% on beef and 30% on lamb; 10.5%on textiles, clothing and footwear. Tariffs,unfortunately are only part of the bad news. Manyexports under bilateral arrangements also havenon-tariff costs (adaptation to different regulations).These non-tariff barriers include on average 30%on food, drink and tobacco; 10% on textiles,clothing and footwear; 9% on motor vehicles.

A poll of polls among respected UK economistspredicts that the UK’s economy will suffer a loss ofbetween 1% and 3% of GDP growth. Given thecurrent low levels of growth that will take the UKinto recession. This gloomy scenario hasprompted two strange bedfellows, the CBI and theTUC to write jointly to the PM demanding that sheavoids a no- deal Brexit.

On a purely personal level I subscribe to the JaneAusten measure of the idiocy of Brexit - 52% Prideand Prejudice and 48% Sense and Sensibility. Ican only hope that something will happen toprevent Brexit. The authors of the process thatwas started to satisfy internal party politics wouldfind themselves debarred from holding office werethey company directors. Apart from causingconcern, chaos and economic disadvantage it islikely to lead to the break-up of the UK. Many of theScots who voted in the independence referendumto remain in the UK did so fearing theconsequences of a Scotland outside of the EU.Brexit will deprive them of a reason to wish to stayand pressure will grow for a second referendum onScottish independence. It's worth rememberingthat more Scottish voters opted for remaining in theEU (62%) than for remaining in the UK (55%)

Life after Brexit will be tougher for those looking todo business between the UK and Poland but it isnot all doom and gloom. Despite politicians’attempts at economic self-immolation, the UK isstill the fifth-largest economy in the world and isagain (as of January 2019) Poland’s second-mostimportant export market. There is little chance thatthe two countries will remain other than importantdestinations for mutual import, export andinvestment activities. Without the certainty

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of finalised agreements, it is hard to predict thedetail of the changes that will be required in theway we do business and we will all have to keepour eyes on the Brexit ball to ensure we do notharm our businesses through ignorance of newrules. Uncertainty will continue for some years. Aswe did during the periods pre- and post-Polishaccession to the EU, the BPCC will follow closelyall of the developments that may affect yourbusinesses and we will share our knowledge withyou, supplementing your own diligence andfacilitating knowledge sharing among ourmembers. You may read elsewhere in this editionabout some knowledge sharing initiatives we areundertaking in the next days

May your Brexit be bountiful or better, awesomelyabandoned!

Tony

GlaxoSmithKline’s EuropeanFinance Hub – furthercommitment to Poznań

On 15 March 2019, GSK announced it would besetting up its European Finance Hub inPoznań, employing between 200 and 300experienced financial experts to carry out high-value added financial work for the company.

Planning, forecasting, budgeting, reporting andfinancial control functions for operations across thewhole of Europe will be conducted through Poznań.By the end of this year, the finance hub will beemploying its first 80 employees. It will becomeone of three such hubs carrying out financeactivities for GSK around the world. The new teamwill also be responsible for implementing intelligentprocess automation and mobile technologies.

GSK already employs over 700 IT specialists inPoznań, who provide IT support for all of GSK’s100,000 employees in more than 100 countriesworldwide. Other activities carried out in Poznańfor other GSK operations across

Europe include pharmacovigilance, marketing andregulatory functions, which include new drugregistration.

The new unit will be co-located with the IT hub untila new, purpose-built office is ready for it by the endof 2020. By then, the European Finance Hub will beresponsible for a quarter of GSK’s global sales of£8 billion. “The work carried out here will be highlyanalytical, requiring coordination and judgment,rather than repetitive, transactional activities, usingour single global SAP platform,” said Nikos Xydias,director-general of GSK in Poland.

Poznań is also home to GSK’s pharmaceuticalmanufacturing facility that produces over 10mpacks of medicine every day for over 130 marketsaround the world. In total, GSK currently employs2,000 people in Poland of whom 1,500 arecurrently in Poznań. And in nearby Gądki, isGSK’s outsourced European logistics hub.

Speaking at the press conference announcingGSK’s £6m new investment in Poznań, the city’sdeputy mayor Katarzyna Kierzek-Koperska saidthat a crucial factor behind the decision was thefact that Poznań is a city of 120,000 students, soinvestors looking to set up advanced business orIT centres will not find it hard to recruit the rightpeople. She also highlighted Poznań’s excellentinfrastructure links, located as it is half waybetween Warsaw and Berlin.

Undersecretary of state at the Ministry ofEnterprise and Technology, Tadeusz Kościński,said that GSK’s latest investment in Poland showsthat the country is moving up the value-addedladder, attracting ever more innovative,technologically advanced investments that offerhigh-quality, well-paid and stable employment. It isproof that Poland offers good conditions forinvestment, and confirms that for GSK, Poland hasbecome a strategic market.

GSK has partnerships with Poznań University ofTechnology and with Poznań University ofEconomics, which form an important part of the

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firm’s recruitment and employer branding activities.

GSK has been in Poland for over 20 years sinceacquiring the Polfa Poznań manufacturing plant in1998 (then as Glaxo Wellcome, before the mergerwith SmithKlineBeecham that formed the currentGSK in 2000). Today, GSK, headquartered in WestLondon, is the world’s sixth largest pharmaceuticalcompany.

BAE Systems presence in Poland

At BAE Systems, we help our customers tostay a step ahead when protecting people andnational security, critical infrastructure andvital information.

We provide some of the world’s most advanced,technology-led defence, aerospace and securitysolutions and employ a skilled workforce of morethan 83,000 people in more than 40 countries.

From state-of-the-art cyber threat detection toflight-control systems that enable pilots to makebetter decisions, we never stop innovating toensure that our customers maintain theiradvantage. This is a long-term commitmentinvolving significant investments in skills. We alsowork closely with local partners to supporteconomic development through the transfer ofknowledge, skills and technology.

BAE Systems has a long heritage in Poland ofover 20 years, supplying equipment and servicesacross the country, including transfer of turretlicence for the Krab self-propelled howitzer.

We work in partnership with Polish industry toprovide the next generation electric bustechnology, naval guns for the Polish navy and weare introducing the latest technology into thecountry through the supply of electronic warfareground station equipment. We directly employ over200 people through our cyber operation in Poznan.Our Poznań Delivery Centre provides

services and support to our clients and exportsdata analysis and services to customersworldwide

Cognifide - world leaders inexperience technology

“Cognifide started as a New Year’s resolutionin 2005”, says Miro Walker, co-founder andCEO of Cognifide.

“Stuart Dean and I were working in the tech teamof one of the early digital agencies, getting moreand more frustrated with technology sitting as anafterthought to the ‘imagineers’. We came back towork at the beginning of 2005, resolved to start abusiness of our own. We couldn’t afford to doanything in London, so we looked at Poland, whichis where my family is originally from. We startedout in a garage in Poznań with our old boss asour first client.”

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Cognifide’s Engineering Centre is still based inPoznań and has become a recognised incubatorfor technical talent in Europe. As the company hasgrown, acquiring an ever-bigger roster of clients, ithas opened offices around the world: in 2006 inLondon, then in New York in 2016.

Cognifide is constantly welcoming people fromdifferent backgrounds into the company, bringingwith them new and different ways of thinking. In2018 another Development Centre, and Cognifide’snewest outpost, opened in Bydgoszcz, Poland.Today, Cognifide’s headcount is over 400 peopleworldwide.

Cognifide’s technology

In the early days Cognifide’s team worked fordifferent agencies as an outsourced IT department.Then they started to specialise in contentmanagement systems. These have now evolvedinto customer-experience platforms and sit at theheart of the websites, apps and everything else inthe digital marketing mix.

“We’re the experts in digital who make the complexsimple. We design, build and operate large,sophisticated digital platforms for the world’sleading organisations and we’re market leaders interms of the quality of our solutions.” saystechnology director Albert Cenkier. “To achievethis, we foster a culture of innovation to stay aheadof the technology and to attract the best people.”

Cognifide has over 12 years

of experience in delivering digital programmes forsome of the world’s biggest brands. Its staff havedeep expertise in the leading content managementtechnologies, working with Adobe ExperienceManager and across the Adobe Experience Cloud.And it is one of only 41 companies in the worldawarded Platinum Partnership status by Sitecore.Additionally, it has a strong history of developing itsown toolsets and applications for speeding up andimproving the quality of digital implementations,including Zen Garden and the Sitecore ExperienceAccelerator.

Cognifide’s people

“The two words that make up our name – cognitionand fidelity – sum up everything that’s important tous,” says managing director Marcin Stańczyk.“Cognition reflects our experience, expertise andthe attitude that we bring to that work. Fidelity is allabout the way we treat the people we meet in thecourse of our work; clients, suppliers, agencies,and colleagues.”

In an independent 2017 survey of Cognifide clientsby Digital Clarity Group, 91% said that they choseCognifide because they demonstrated a superiorunderstanding of client’s individual needs.Cognifide has lived and breathed digital for wellover a decade. Its people and teams have realdepth of experience and unmatched expertise.However, it’s the Cognifide culture that reallymakes the difference.

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Cognifide was founded with the intention of being afun and stimulating place to work with friendlinessand good humour as a part of the DNA.Cognifiders work in agile teams, sharingknowledge and putting a premium on creativity andopenness. In 2018, the Polish daily newspaper,Puls Biznesu, introduced the Architects ofInnovation Awards, paying tribute to businessesembracing the spirit of innovation. Cognifide wasawarded first prize for 'building a culture ofinnovation'. In 2017 Cognifide was awarded the titleof Master Champion (the first company ever) in theForce of Attraction awards, aimed at showcasingcompanies in Poland that excel in employerbranding.

Cognifide takes care of its communities. Each yearthe company sets aside a percentage of its profitand a portion of everyone’s time to promote andhelp social and environmental causes. In 2018,almost 30% of Cognifide’s workforce gave theirtime and energy to causes that they care aboutand got involved in knowledge-sharing activities.

Cognifide - a WPP company

When WPP bought Cognifide in 2014, it becamepart of the biggest creative transformationcompany in the world, alongside some of the greatnames of advertising, digital, and direct marketing;names like Ogilvy & Mather, Young & Rubicam,AKQA and Wunderman Thompson. In 2017 WPPwas named Holding Company of the Year at theCannes Lions International Festival of Creativity forthe seventh year in a row, with 42 of its agencieswinning awards at the event. “We have access tosome of the leading specialists in the industrythrough our sister agencies, Wunderman,Possible, Acceleration, Wunderman Commerceand Burrows.”, says Marcin Stańczyk. “Togetherwe were ranked fifth in Econsultancy's Top DigitalAgencies report for 2018.”

The future

“The immediate impact of Brexit on our business islikely to be minimal, with the biggest short termrisks being to currency rates and additionalbureaucracy around travel,” says Miro Walker.“Cognifide offers compelling services and productsthat are in high demand. We have an incredibletalent base of highly skilled specialists and havegrown into a global company in one of the fastest-growing areas of the worldwide economy. We willcontinue to invest in opportunities in the US andacross Europe, and fully expect growth in theseareas.”

Beyond Brexit – Poeton’sCommitment to Poland

By Craig Silsby, marketing coordinator, Poeton

Whilst the uncertainty surrounding Brexit hadbeen far from ideal, Poeton’s commitment toPoland will continue into the future.

As for many companies, the situation makes itdifficult to plan for the future, both in the short andlong term, but steps are being taken to ensure anyrisks to Poeton’s customers are minimised.

Poeton has been actively working with customersand supply chain partners and will continue to doso over the coming months to prepare and tomonitor developments, to operate effectivelythrough the Brexit period and beyond.

Specifically at Poeton Polska, development plans

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continue to progress, with new team members onboard, new customer approvals and an eventmarking the operational launch of the new facility.

October saw the official launch of the PoetonPolska facility with a special event attended bycustomers and local dignitaries. The launch eventcelebrated the investment in the region andmarked the beginning of a new chapter in Poeton’s120-year history.

Guests had the opportunity the meet the ever-growing Poeton Polska team, learn about theprocesses that are currently being offered as wellas the plans for future expansion before seeingbehind the scenes of the state-of-the-art facility ona factory tour.

Darren Burge, managing director of PoetonIndustries, kicked the event off giving anintroduction to Poeton and using it as anopportunity to introduce the newly appointedgeneral manager for Poeton Polska, LeszekMaziarz.

Marek Darecki, president of the Aviation Valleyassociation and president & general manager ofPratt & Whitney Rzeszow, addressed theattendees with the story of his involvement inlaunching Aviation Valley(http://www.dolinalotnicza.pl/en/) back in 2003.Launched to further the growth and development ofthe Polish aerospace industry, the organisationseeks to enhance the supply chain, promote R&Dand represent the interests

of its members in Poland’s political environment.Poeton Polska joined the 160 members of theassociation, demonstrating the continued successof Aviation Valley in attracting overseasinvestment.

Jason Rheinberg, Deputy Head of Mission at theBritish Embassy Warsaw, spoke of forgingstronger British-Polish business relationships andinvestments such as Poeton’s are key to this. MrRheinberg stated that providing support for trade inthe region is an important role for the Embassy andhe was pleased to see at first hand the investmentthat Poeton has made in Poland.

John Archer, Poeton’s R&D manager thenpresented on the technical capabilities of thePoeton Polska plant. Dr Archer explained theperformance advantages customers can gain fromusing the Apticote 300 Anodising and Apticote 350Hard Anodising & Polymer solutions which areboth already available at the Poeton Polska facility.He examined the effects

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of the EU’s recent REACH legislation andexplained which treatments will be outlawed, andhow Poeton is leading the way in developingreplacement solutions.

The event was wrapped up with a factory tour inwhich the parish priest blessed the facility before adrink’s reception allowed guests to raise a toast tothe new facility and network with the Poeton staffand fellow guests.

Polska Team Expands

The Poeton Polska team has been steadilygrowing since launching the facility with the twolatest recruits in key positions for the future growthin the region.

Leszek Maziarz has joined in the role of generalmanager and will oversee the Polish facility. MrMaziarz has strong experience of working withinthe aerospace sector, with over ten years ofexperience including for a surface treatmentprovider in Asia and aerospace manufacturers inPoland.

Anna Kąkol joined at the start of 2019 as PoetonPolska’s sales representative, working with currentand potential customers to develop long termstrategic partnership and ensuring customersreceive the best treatment solutions for theirengineering problems. Ms Kąkol will also be foundrepresenting Poeton Polska at trade exhibitionsand industry meetings throughout Europe.

The Poeton Polska team

pictured with Poeton Chairman Anthony Poeton(fifth from left).

Approvals begin to take-off

Poeton Polska are also celebrating successfulrecent audits resulting in approvals from UTC,Moog and Yasa.

These new approvals are for the full range ofanodising services, including hard anodising,tartaric sulphuric anodising and chromic acidanodising, and allows Poeton Polska to beginprocessing parts within the respective companiessupply chains.

These approvals further demonstrate the qualitylevels that the Poeton Polska facility is working toand combining with the key industry wide qualityaccreditation AS9100 Rev D means PoetonPolska is ready to be the surface treatment partnerof choice in the region.

For more information about Poeton Polska pleasev i s i t www.poetonpolska.pl or emailsales@poetonpolska.pl.

Imperial Tobacco. A place wheregreat business meets great people

Two modern factories in Poland, nearly 1,800employees, a significant position in the tobaccoindustry in the domestic market and a multiplewinner of the prestigious Top Employer award– this is Imperial Tobacco and the 17-yearpresence of the British concern in Poland.

One of the largest British tobacco manufacturers inthe world – Imperial Brands – owns two companiesin Poland: Imperial Tobacco Polska S.A. with afactory in Tarnowo Podgórne near Poznań andImperial Tobacco Polska Manufacturing S.A.with a production facility in Radom. Both plants,together with the manufacturer's extensive salesnetwork in Poland, provide nearly 1,800 jobs andmake a significant contribution to regionaldevelopment. Imperial Tobacco maintains

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a strong market position in Poland with severalpercent of cigarette sales and is a leader insmoking tobacco sales.

Poland is one of the largest and most importantmarkets that I manage on behalf of the BritishImperial Brands Group. It our Polish factories wemanufacture tobacco products for sale in Polandand other foreign markets. Thanks to efficientorganisation, logistics and high competency levels,the Polish team is doing really well said AlešStruminský, President of the Management Boardof Imperial Tobacco Polska S.A. and directorgeneral of the Central Europe and Ukraine Cluster.

The challenges facing Imperial Tobacco includedealing with the demanding tobacco market inPoland, and the changes taking place in theEuropean political space. Withdrawal of the UKfrom the EU will be a serious test for bothcountries, economically and organisationally. Thefuture relations with our British business partnersor the way of conducting business transactions areuncertain.

In addition, legal regulations, especially in the areaof taxation or customs, in the movement of goodsor services, are still an unresolved issue. Certainly,all existing models of cooperation will have to berestructured in order to cope with new politicalrealities. This situation will also affect themanufacturing of tobacco products in Polishfactories dedicated on serving foreign markets,including the UK.

Last year we celebrated 20 years since theestablishment of the factory in TarnowoPodgórne near Poznan. This factory is one ofthe most important investments of ImperialBrands. The plant was built in a record time and isconstantly being modernised through theexpansion of new production floors and theconstruction of a modern, fully automated high-baywarehouse. As a key plant in the group, it alsoincreases its production capacity year on year. Inrecent years, machines based on moderntechnology have been installed, which allow for theproduction of up to 1,000 packs per minute.

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Highly automated production requires high safetystandards. Imperial Tobacco's factories in Polandare a leader in this respect. The priority of theprogramme in force in the European plants is toincrease safety in the workplace. The I OWNSafety project is active in Poland. It promotes theidea of mutual safety among employees – the ideathat the safe work of one employee means thatother employees are also safe.

Imperial Tobacco in Poland is characterised byhigh labour standards, something noted by anindependent human resources institute. For theninth year in a row, Imperial Tobacco Polskahas won the Top Employer Polska and TopEmployer Europe awards, and ImperialTobacco Polska Manufacturing has receivedthis title for the sixth time. This is an award forthe highest standards in the area of managementand the creation of attractive working conditions fortheir employees – proof that both companies placegreat emphasis on the development, education andsupport of the entire workforce.

Imperial Tobacco conducts broad and multi-faceted activities designed to reduce the greymarket for tobacco products in Poland. Beingwell aware that illegally traded tobacco productsnot only cause huge losses to the Treasury, butabove all pose a health risk to consumers, ImperialTobacco supports information campaigns andoperates its own website - www.stop-szarej-strefie.pl. The "Stop the Grey Economy"

platform allows reporting suspicions of fiscaloffences (selling tobacco without Polish excise taxbands) and offers up-to-date information about theactivities of the state services and disclosed casesof criminal activity in this area.

Imperial Tobacco intends to strengthen its positionamong the top tobacco companies in Poland.

We want consumers to perceive our products asquality products, our employees to be satisfied withthe workplace and our partners to build a solidbusiness with us. Equally important for us iscooperation with the state authorities, for examplein the fight against the grey market – we are opento further actions - added Aleš Struminský.

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RICS in Poland

By Joanna Plaisant, country manager, RICS

For 150 years – and for 21 years now in Poland– chartered surveyors have helped driveeconomic growth by building towns and cities,managing land, fostering communities andgenerally ensuring that the world is a moreinterconnected place.

The trust and confidence that chartered surveyorshave inspired as a profession has helped supportthe sustainable development of the built and naturalenvironments.

The world in 2019 is very different from how itlooked 30 years ago, let alone in 1868, when wewere founded. The impact of big data and artificialintelligence; climate change; urbanisation on anunprecedented scale; and the loss of institutionaltrust – these are just a few of the challenges wenow face.

Poland’s real estate market is second to nonewithin the CEE region in terms of size, range andinvestor confidence. It offers yields more attractivethan those found on Western European propertymarkets, while maintaining a low risk profile andrelatively high liquidity. Poland is also a leader interms of the value of transactions on the realestate market in the CEE region.

RICS believes that the best way to serve itsmembers’ and Polish market interests is to ensurethat the profession is trusted and relevant. Webelieve this will be best achieved through building amodern, diverse and agile organisation and anappropriate oversight body for the setting andsupervision of regulations and standards.

Work to this end has already started. The RICSFutures programme was established in 2015, toexplore the implications of the drivers for change to2030, from mass urbanisation and

the emergence of real estate as an investmentclass, to the rise of the worldwide middle class andthe revolutionary impact of big data. RICS built onthis in 2018 with a consultation among membersacross all sectors of the profession on the globalissues and trends driving change in the builtenvironment. Over 1,000 conversations were held,in the form of roundtables and seminars, to reviewhow the change documented three years ago isimpacting the profession.

Amongthe mostimportanttrendscited by

members of the profession during the eight-monthconsultation are that ‘digital data is now king’,‘automation and artificial intelligence are changingthe tools we survey the world with’, ‘RICSprofessional opinion is increasingly more importantthan technical prowess’, and that customers‘increasingly value property as a service more thantheir structures’. RICS plans to explore some ofthese key themes and outline ways to respond tothem, in a bid to provide professionals with thetools to navigate the fast-changing environment.

The organisation has also been mapping changeand providing solutions in other ways. Its ground-breaking work via the World Built EnvironmentForum (WBEF) and Summit has served tohighlight the contribution RICS professionals make

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to the environment, economy and society.De¬signed to challenge conventional wisdom andpromote innovative thinking about the future,WBEF joins together experts and thinkers frommultiple disciplines and al-lows RICS to look at thebuilt environment through a holistic lens.

Another future-proofing initiative is the Cities for ourFuture Challenge, launched in January 2018 andaimed at finding transformative and practicalsolutions to urgent issues that cities face includingurbanisation, climate change and resourcescarcity.

RICS’ programme of standards development andthought-leadership on conflicts of interest, anti-money launder¬ing and corruption encouragesRICS professionals to use their influence to furtherbuild trust across the industry. But that trust cannotbe taken for granted. With the world changing in somany ways and given the pace at which it’shappening, it’s critical that we never rest on ourlaurels.

This is an incredibly exciting time to be a memberof our profession, with the world growing andchanging so rapidly. Professionals operating withinthe natural and built environments are at the heartof some of the great challenges of our time,including urbanisation, climate change, andtechnological development.

RICS’ members have been shaping the world for150 years. By setting and enforcing standards thatgive confidence to markets and by putting peopleat the heart of what we do, we will have a positiveimpact on the future direction of all the regions ofthe world in which RICS operates, includingPoland.

Find out more about the RICS Future programmeand how to get involved atrics.org/futureprofession.

Further information about the WBEF 2019 Summitand reports on a range of critical global issues canbe found at www.rics.org/wbef.

Brexit Update – The Implicationsfor the Economy and Real Estate

By Simon Rubinsohn, chief economist, RICS

Any judgment about the impact of Brexit on theUK economy and its real estate markets needsto be heavily caveated at this point for obviousreasons.

[More than two and a half years after thereferendum, Parliament is still struggling to agree aposition on what the new relationship should looklike. Building a consensus in the near term looksfairly implausible if the response of politicians to thedefeats of Teresa May’s Withdrawal Agreement isanything to go by. A limited extension to Article 50beyond 29 March was always a possibility butgoing beyond a few weeks raises issues includingthe likelihood that Britain will have to participate inthe forthcoming European elections. As a result,most commentators have raised the possibility of a‘no-deal’ departure.]

The impact on the economy of the decision toleave coupled with uncertainty about the futurerelationship with EU has already had an impact onthe economy. The most well-regarded analysissuggests that national output is currently some 2%to 3% below where it would otherwise have been.Moreover, the best lead indicator of economicactivity in the UK slipped in the final three monthsof last year to its lowest level since Q3 2016.

Following GDP growth of 1.4% last year, forecastsfor 2019 currently span a broad range with thegloomiest at just 0.8% and the most upbeat at 2%.The average projection is actually little differentfrom 2018. A key point underpinning most if not allthese forecasts is that some form of deal is agreedwith the EU before the end of March. Beyond 2019,the economic projections rest very heavily onassumptions about the relationship

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agreed with the EU and the scope for other tradedeals (with third parties) to be put in place. A keyrisk (which I share) is that securing these deals willprove rather more tortuous than envisaged byleading Brexiteers.

Even advocates of a no-deal departureacknowledge there will be at least some short-termdisruption to the economy in the immediateaftermath of the UK leaving the EU without a deal.Manufacturers are reporting precautionary stock-building to manage the supply chain while servicefirms are highlighting an impact on business-to-business demand.

Analysis by Oxford Economics suggests theadditional trade frictions and depreciationassociated with a ‘no-deal ‘scenario would result ina significant slowing in the UK economy even ifthere were some loosening of fiscal and monetarypolicy. Their modelling puts GDP just over 2%lower than the baseline forecast by end 2020 andnearer 3% by end 2023.

Investment into the commercial real estate sectorlast year was around £55bn according to PropertyData. This was down on the £66bn in 2017 butahead of the 2016 number. Overseas interest inthe market has remained fairly solid accountingaround 45% of total investment – typically, this isaround 40 to 50%. Concerns about the impact ofBrexit have been raised by analysts and, it isnoteworthy, that yields have edged upwardsthrough late 2018 although this likely reflects amarket that was in places quite stretched from avaluation perspective.

The about to be released RICS UK CommercialProperty Survey suggests that sentiment remainsfairly resilient for now in both the occupier andinvestment space with the headline readings onlyvery marginally negative. Within this, there areareas where the insight provided by RICSprofessionals is more downbeat such as retail, butthis has more to do structural changes in theindustry. However, research by others

including Property Market Analysis draw out therisks associated with a ‘no-deal’ Brexit. In thisenvironment, they could see a significantadjustment in capital values (of up to one-quarter)over the next couple of years which compares witha flatter picture on their central scenario.

Evidence from the RICS UK Residential Surveysuggests that while Brexit related uncertainty isbeing widely cited by respondents as a factorresulting in a flatlining housing market, at this pointit is largely reinforcing trends already in place.London and the wider South East, in particular, arefeeling the pinch of affordability constraintsfollowing sharp price gains in recent years and taxchanges.

The Bank of England has raised the possibility of a30% drop in house prices in a disorderly Brexitscenario. It needs to be remembered this was partof a stress testing scenario for the banking sectorand pushed a range of assumptions around theeconomy, interest rates and sterling to extremes.We view this combination as implausible andenvisage the central bank acting to support theeconomy in a worst-case event (as it did after theGlobal Financial Crisis and the referendum) ratherthan, for example, pushing base rate significantlyhigher.

For now, construction output appears to be holdingsteady with the RICS (sentiment-based) measureof workloads showing modest gains likely topersist through 2019 although the outlook formargins could prove more challenging. However, areal estate shock linked to ‘no-deal’ is likely to shiftthe mood music quite quickly.

The Construction Products Association hassuggested that, in these circumstances, outputcould fall by more than 5% over the next twoyears. Key issues for the sector will include cost,as the likely exchange rate adjustment leads tosharp input price increases, and skills, withadditional difficulty in attracting EU labour.

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Are Brexit preparations necessityor best practice is enough?

Gleeds Polska is part of Gleeds Group - one ofthe world’s leading management andconstruction consultants with over 130 years ofexperience in the construction industry andoffices worldwide.

We use impartiality as our differentiator, ascompetitors continue to be acquired.

Our core services are project & cost managementbut we also provide quality/site supervision,technical due diligence, funder’s sepresentative,sustainability services and other specialistservices. We provide solutions for every stage ofproperty lifecycle, shaping the future of buildingenvironment.

Since 1992, Gleeds Polska has been activelyinvolved in the Polish real estate marketdevelopment, that led to achieving its today’scondition – a dynamic developing market with ahigh culture and best practice.

Early nineties were the time of dynamic politicaland economic changes that had an impact toPolish situation and Polish Real Estate Market. It isalso a time when Gleeds started its business inPoland.

Therefore, Gleeds Polska beginning took placeduring gigantic changes, therefore the marketsituation was not as stable as nowadays.

Gleeds Polska main aim was to support the firstforeign investors, that might have otherwise gotbogged down in complicated, sometimes eventricky Polish construction law or abstruseadministration procedures, while doing business inPoland.

As we care about the quality of our services, wekeep the highest standards of excellence. GleedsPolska is entitled to use the ‘Regulated by RICS’designation, which is the recognised mark ofproperty professionalism, as the first company inPoland. We work under rigorous qualitymanagement system, according to ISO9001:2008. Gleeds Polska is a member of theInternational Ethics Standards Coalition. The mainaims of this coalition are to increase public trust byimproving ethical consistency, transparency andenforcement for the global real estate market andrelated professions.

During these exciting 26 years, our company hasconsistently followed the idea of sustainablegrowth.

In Gleeds, we understand the importance of beingable to think globally while acting locally. Each oneof our offices is part of community in which itoperates. Our priority is to employ people from thelocal community with the specialist knowledge andunique understanding of their locality, custom,culture and practice giving them an access tointernational benchmarking database.

Today, Gleeds Polska is a network of seven localoffices in Warsaw (HQ), Kraków, Łódź, Poznań,Katowice, Wrocław, Gdańsk – and there is also its

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subsidiary, Gleeds Ukraine, with its office in Kyiv,which was established in 2005. Thanks to thegeographical coverage we are close to our clients’projects and we are able to react immediately toimplement solutions meeting the requirements.

We are reliable employer. Gleeds Polska employs110 professionals and cooperates with around 50sub-contractors. Almost 40% of our staff haveworked with us over five years. We combine theknow-how, wisdom and experience of our maturepartners with the fresh outlook of our youngerworkers who have just started to develop theirprofessional careers – that makes our teamdiverse and charismatic. That kind of combinationis beneficial for our clients and the projects wesupport.

We have the scale, strength and expertise tosuccessfully manage complex projects and ensureour clients and the communities in which theyoperate benefit financially, economically andsocially.

Our dynamic development is possible thank to ourteam’s long-standing relationship with clients, asover 75% of our commissions is repeatedbusiness, our annual Client’s Satisfaction Surveyshows that 96% of our clients are very satisfiedwith the quality of our services.

We are constantly following trends still improvingservices with dedicated BIM and SustainabilityTeams to support clients’ with innovative solutions.

We are completely aware of the role we play in ourenvironment and the impact that business canhave on the community we live in. Youngsters willeventually live, work and have families, soCorporate Social Responsibility is deeply rooted inour approach. That is the reason why we activelyparticipate in global Inspiring the next generationprogramme (volunteering over 10,000 man hours),Szlachetna Paczka (‘Noble Parcel’), charity runs,the JLL Volleyball Charity Tournament, supportChildren’s House and also – Warsaw UprisingVeterans.

Gleeds, as a company with origin British roots,realises what the impact of the Brexit on UE andUK markets may be.

Richard Steer, chairman of Gleeds International,says: “this year promises to be one of immensechallenge for all of us working in the builtenvironment. It does not matter where you arebased or what you do, the issue is one ofconfidence and whether we will see the UK marketbounce back against an uncertain andunpredictable economic situation.” As we are stillwaiting for the UK Government to decide how theUK leaves the EU, we may predict theconsequences of both scenarios. As Richard Steerclaims “This is nothing compared to theconsequences that a no-deal Brexit would have,with draconian tariffs on raw materials, unwantedimmigration curbs and a plummeting pound.”

As Tadeusz Jachowicz (director, Gleeds CEERegion, Gleeds Polska) says “Brexit is anhistorical and controversial event that we arewitnessing and we definitely should be aware of thechanges that it might implement. We believe thateven if political and economic situation is about tochange, we have to remember the values weappreciate and invest in our people, their know-how, team building and cooperation. We have tokeep the best quality of our services and be opento our clients’ new business needs. We could fulfillthem being a strong, reliable team of professionals,no matter what the effects of the changes, thisongoing or future, would be. As

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time goes by and political situations are beingchanged, we stick to our beliefs, our ideas, ourmission and vision. I know that we will be strongkeeping achieving our goals - to attract the greatestmarket players, support flagship projects andcooperate with the best specialists in the world.”

20 years in Poland

By Aleksandra Zentile-Miller MA Dip Arch, ARBSARP, director, Chapman Taylor

Chapman Taylor is an international practice ofarchitects, master-planners and designers,established in UK in 1959.

Over thelast 60years,thepracticehasgrownfrom thethreeoriginalfoundingpartnersinto alarge

international firm. Today, we operate from 18regional and associate studios in the UK, Centraland Eastern Europe, Asia and the Middle East,undertaking projects worldwide. Our work has wonover 250 global design awards.

Chapman Taylor’s Warsaw studio, opened inSeptember 1999, has been designing anddelivering major projects across the CEE region fornearly 20 years. The studio provides a full range ofservices from concept design and master-planningthrough to permitting, tender and constructiondocumentation, as well as on-site inspections. Weoffer consultancy services in strategic commercial

areas such as development feasibility studiescovering retail, leisure, offices, hotel planning – withparticular emphasis on our expertise inregeneration of urban fabric.

The firm has the resources, the range of skills andthe experience to carry out successfully a widespectrum of architectural projects through allstages from feasibility studies to completion. Thedirectors – who are fully involved in every project –are supported by highly qualified staff. We havebeen using BIM in our work since 2008. We areproud of how the Warsaw studio has become arecognised pioneer in the use of 3D BIMtechnology in Poland. We have assisted the BPCCand the British Embassy in Warsaw in advocatingthe use of BIM in Poland, particularly since the UKmandated BIM for all buildings procured by thepublic sector since 2016.

In the early 1990s Chapman Taylor started lookingat opportunities in Poland, when we receivedexpressions of interest from potential clients. Whenproject opportunities in Poland became more solid,particularly a large retail and leisure project on thesite of a former coal mine in central Katowice (nowSilesia City Centre), a permanent base wasestablished in Warsaw in 1999. There are twosubsequent retail and leisure projects built on thesites of former coal mines, including Pogoria inDąbrowa Górnicza and the award-winning GaleriaVictoria in Wałbrzych. These were very difficultprojects, logistically, built on land full ofunderground ‘holes’. They required clever designand innovative engineering solutions to be built andbecome the successful schemes they are.

One of the major and unique projects we workedon was Centennial Hall in Wrocław. Originallyconstructed according to the plans of Max Berg in1911-13, Centennial Hall was an early landmark ofreinforced concrete architecture. As a symbol ofthe city of Wrocław, it was listed as a UNESCOWorld Heritage Site in 2006. Our work onCentennial Hall included re-arranging the interiorsmodifying the functional aspects and increasingseating numbers to 10,000 from previous 6,500; all

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within the constraints of very strict heritagerequirements.

Another project that we are proud of is Ethos inWarsaw. It is a prestigious mixed-use, retail andoffice scheme on the historic Royal Route.Chapman Taylor Warsaw was offering turnkeyarchitectural services relating to the retail andoffice public spaces of the project. These includedinterior design and commercial advisory for theexpansion and refurbishment of the existingbuilding.

Chapman Taylor’s Warsaw studio has recentlycompleted the first phase of renovation of theForum Gliwice, transforming the shopping centrepublic areas inside and out as well as bringing amodern and fresh feel to it. The refreshment ofPlaza in Lublin for Klepierre Group is alsocompleted. We are working on another existingretail and leisure scheme remodelling andrenovation, Bemowo in Warsaw – the buildingpermit has recently been obtained. Three fashionoutlets extension projects are also in the pipeline.

We are working on the interior and exteriortransformation of Kupiec Poznański in thePoznań’s Old Town. The scheme will include

reconfigured office and retail spaces along with anew four-star Marriott-branded hotel. Constructionis scheduled to complete in 2022.

The studio is also working on a seaside resortdevelopment on Poland’s Baltic coast, which willinclude a four-star hotel, aparthotel and aresidential building, all with access to the beach, aswell as a public square, events space andassociated amenities.

We have been looking to diversify our capabilitiesquite markedly, with a view to enhancing our profilein the fields of hospitality, workplace andtransportation. The studio has been working on anumber of hotel designs, including the one inPoznań, and we have been liaising with the Praguestudio on office designs. We have achieved abuilding permit for the automotive industry catalystplant, now on site in Gliwice, on behalf ofchemicals and sustainable technology specialists(FTSE 100 firm and BPCC member JohnsonMatthey).

We are competing for and creating conceptdesigns for several major master-planningschemes; still early days for some of them, asthey have to be subjected to various planningprocesses and administrative procedures. Wealso are looking into transportation projects

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in Poland, in particular the Central TransportationHub (CPK) an ambitious multimodal multibillionproject between Warsaw and Łódź announced bythe Polish government.

The changes taking place in the industry, includingnew approaches to the methods for the provisionand procurement of buildings, present opportunitiesfor services of many kinds and over a broaderspectrum than in the past. This is a challenge weare pleased to accept and we have responded byproviding a greater flexibility of service with thesame design and management quality that hasbeen our objective since the practice was foundedin 1959.

BBC Studios – bringing the best ofBritish to Polish televisions

April 2019 marks the first anniversary of BBCStudios, a commercial subsidiary of the BBC,formed through the merger of BBC Studiosand BBC Worldwide.

This merger has brought together the largest TVdistributor (outside of the US studios) and the mostawarded producer in the UK, with a mission toinspire audiences in the UK and around the worldwith bold, British creativity.

With British drama enjoying widespreadinternational acclaim and scooping top industryawards, in Poland, BBC Studios delivered on thisaim by launching BBC First, a premium Britishdrama channel in October 2018. The

channel (rebranded from BBC HD) is home to thebest original and innovative British drama, availableto local audiences with full English and Polishsubtitles. The channel launched with a schedulepacked with award-winning and critically acclaimedprogrammes such as Sherlock, Doctor Who andBAFTA-award-winning Broken starring Sean Bean(Game of Thrones, Lord of the Rings) who came toPoland to support the launch of the channel. Thechannel is quickly gaining a loyal audience inPoland with the Doctor Who New Year’s Special,which aired only 90 minutes after the UK premiere,exceeded the prime-time slot average by over300%.

As well as operating a branded services business,BBC Studios also partners with internationalbroadcasters and platforms to bring British contentto the widest possible audience. A local example ofthis in action was BBC Studios’ partnership withTVP who launched their subscription video on-demand (SVOD service) last year enabling theiraudiences access to 150 hours per month? ofBBC content including some of the best naturalhistory programming (Spy in the Wild, WildMexico, Wild Thailand) as well comediesincluding Love Nina with Helen Bonham Carterand many more.

BBC Studios Poland began 2019 in Poland with afresh and vibrant new look for BBC Lifestyle tomatch channel’s aspirational and entertaininglifestyle content, including big cooking franchiseswith famous chefs, inspirational home and designprogrammes and entertainment formats.

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The brand makeover launched on 1 January.

2019 looks set to bring a raft of stellar televisionprogramming from BBC Studios to Polishaudiences with highlights including One Planet:Seven Worlds from the internationally renownedBBC Studios Natural History Unit, sciencelandmark The Planets which premieres around the50th anniversary of Moon landing, and new serieso f Top Gear with a fresh presenting line-up ofPaddy McGuinness, Andrew Flintoff and ChrisHarris.

RSK: Environmental experts readyfor Brexit

By Aleksander Śpiewak, operations director,Poland and Łukasz Warzec, Central and EasternEurope director

Since its formation in Aberdeen in 1989, RSKhas evolved into the UK’s largest privatelyowned environmental consultancy and is onethe fastest growing companies of its kind inEurope.

It provides worldwide support to help organisationsresolve and manage their environmental,engineering, sustainability and health and safetyissues. RSK Polska, part of RSK, was formed in2011.

With over 3,000 staff across the UK, Europe, theMiddle East and the Russia and the Caspian, RSKprovides professional services

on the client’s doorstep, wherever its operationsare.

How will Brexit influence RSK and its activitiesin Poland and the rest of Europe?

With RSK’s headquarters in Cheshire, UK, Brexitis naturally a hot topic right now. However, as acompany, we are confident that we can dealsuccessfully with any situation that arises due toBrexit. Business is good right now: we haveacquired 11 companies in the last financial year,our staff numbers are over 3,000 and our turnoveris £200m. Brexit may have some impact, and wehave assessed various scenarios, but we don’tknow what will happen yet so our focus now is toget on with what we do.

In Poland, RSK is currently receiving a significantnumber of proposals for environmental duediligence for acquisition sites from various clients.These will keep us busy for the foreseeable future.The Polish environmental market is buoyant; andwe are not expecting Brexit to drastically changethis.

Furthermore, because RSK Polska and RSK’sother European business are all based locally, wewill remain unaffected by the UK’s financial affairsas a result of Brexit.

All services provided by RSK are highlyconsultative, and focus on delivering solutionsrather than just amassing data and undertakingbox-ticking exercises. RSK is one of the fewcompanies of its kind to have achieved certificationto the ISO 9001, ISO 14001 and OHSAS 18001standards for quality, environmental managementand health and safety management.

RSK Polska’s key differentiators are

a multidisciplinary team of specialists

compliance with RSK’s ISO and OHSASaccredited safety, health, environmental andquality management system

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a strong knowledge of Poland’s regulatoryframework

an office in Warsaw with access to a centre ofexcellence of technical specialists across RSK toensure support for each project from the relevantspecialists from project commencement to finaltechnical review of reports. This network alsoenables sharing lessons learned and knowledgetransfer.

Services offered by RSK include:

due diligence, acting on behalf of the vendor orpurchaser, or managing sale or leasebacktransactions.

geosciences, such as environmental siteinvestigation and characterisation. RSK providesdetailed quantitative risk assessments of humanhealth, controlled waters and ecological receptors.

comprehensive geotechnical investigations,where we assess subsurface ground conditions tohelp clients understand geotechnical conditions on-site

remediation involving turnkey remediationcontracting and applying a wide variety of process-based remediation technologies

waste management. We have vast experience incharacterising, managing and auditing waste. Weare an active member of panels that examine theapplication of the definition of waste, as set out inthe European Waste Framework Directive, toseveral waste streams.

environmental impact and design, fromfeasibility studies to post-application consultationsincluding environmental consents and planningapplications and environmental impactassessment

asbestos coordination and projectmanagement. We can provide suites

of services relevant to clients’ needs thatencompass the entire asbestos-managementprocess.

environment, health and safety assessments,including formal audits, gap analysis and servicesto achieve regulatory compliance. We can supplyenvironment, health and safety assurance andimprovements.

ecological surveys and project management.RSK’s international ecology department in the UKhas provided specialist expertise andpresentations to conferences and workshops inPoland.

Responsibility andresponsiveness

By Bogdan Kucharski, Head of Country, BPPoland

BP has been contributing to Poland’s growthand development for over 25 years.

During that period, we have invested over $1.5billion in the country. We paid $4.5 billion to thestate budget in VAT, excise duty and fuel tax. Weemploy over 4,000 people directly and contribute toexistence of another 4,000 job indirectly. We wantto actively support the Polish market this is whywe regularly use the services of Polish designstudios, purchase goods from Polish suppliers andintensively cooperate with Polish contractors andsubcontractors. We have been ranked among thetop 25 employers in Poland, and together withCastrol we are the second largest player in thefuels and lubricants market. We are also ashareholder in the Lotos-Air BP aviation fuels joinventure.

Poland is developing rapdily, with cities flourishingand new roads being built. There is still plenty ofspace to open new fuel stations, and BP is keepingup with the pace of development

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by adapting to the changing environment andfollowing new trends. Today we are number two onthe Polish fuel market, growing our network byaround 20-30 sites each year, with an ambition tokeep up that pace going forward. Building anetwork of dealer-operated stations plays animportant role in strengthening the BP brand in thePolish market. This is a vital element of BP’sinvestment strategy in the country. BP’s proposalto private investors is a comprehensiveprogramme based on long-term and mutuallysatisfactory partnership. Dealer-operated stations,skilfully managed, situated at premium locations,offering high quality products and services, areexcellent ambassadors of the BP brand.

BP’s proposition is exceptional due to threedistinguishing factors, with fuel slate [?] being thefirst among them. Thanks to our extensivedevelopmentR&D programme, we trade fuels ofthe highest quality. Our BP Ultimate fuels haveexcellent dirt-busting and lubricating properties.They protect engines while enhancingperformance. Fuels containing the Active formulastand out from fuels offered by our competitors dueto the increased performance, and protectivefunction for the engine and the environment.

In Poland we are incorporating electromobility inour strategy. In 2019, we will launch electricvehicle charging stations at selected BP stationsas a pilot project. In 2018, we invested in thebusiness of renting cars by the minute, starting apartnership with a car-sharing company in Poznań.In December 2018, we engaged in a new car-rentalproject called Sixt DriveSmart by BP together withSixt Rent a Car. It offers mobility and the possibilityto drive brand new cars without the unnecessaryhassle that comes with car ownership.

Another factor distinguishing BP is the potentialassociated with our shops. We have a range ofworld class products and services developed onthe basis of our mission, which is a uniqueconvenience mission for all BP shops. We have anoutstanding capability of combining our exceptionalaptitude with the talents of our

partners, and applying joint skills to launchingquality products and services to customers.

Since the era of transformation in Poland, theservice stations have changed beyond recognition.Currently, a fuel station is a real service hub initself. Customers expect to satisfy their growingnumber of needs at one stop,at the fuel station.The quality of fuels is vitally important as it attractscustomers but we see that the product-to-serviceproportion is changing. With our retail food offer, wesuccessfully compete against cafés andrestaurants located in city centres. Wild BeanCafés offer more than just coffee. We offer anentire barista concept with customers having thepossibility to choose the type of bean, the level oftaste intensity and the way their coffee is served,as well as select between different types of milk.We want to personalise the customer experience.

We observe shops evolving towards a richer andbetter offer, improved quality and new formats. BPhas been developing its own concept ofconvenience stores with a comprehensiveproposition for customers who want to do theirdaily shopping efficiently when refuelling their cars.We continue to grow the range of our productswhich now comprises a few thousand items,including healthy eating products, gluten-freesnacks, beverages and take-away food. We havebeen expanding our range of sandwiches preparedon-site as well as groceries and ready-made food,enabling customers to prepare a meal at home. Arange of varied services and products is becomingavailable at service stations. We offer ATMs,manual and automatic car washes, with some ofour stations even selling fresh flowers.

There is still room for innovation, in the form ofmobile applications where you can learn about newoffers and order products. BP has been respondingto market needs, and increasingly stronger trendsfor healthy and fresh food. When looking at theforecast of key trends in the retail market in 2019by IGD Retail Analysis, we are strongly alignedwith the consumers’ expectations. According toanalysts from IGD, the retail market will

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be dominated by trends such as corporate socialresponsibility activities, big data technology, health& wellness trends, as well as solutions combiningonline and offline channels.

The third element which distinguishes BP is ourability to develop world-class loyalty and bonusschemes. In our Payback multi-partnerprogramme, we keep communicating to thecustomers that they can use the points to pay forall products at the station. This payment modalityis becoming increasingly popular. In 2018 a newpartner joined our scheme –- Kaufland. This madethe programme even more attractive andincreased the number of retail outlets where ourcustomers can collect points.

Since 1997, BP has offered fuel cards, a perfectsolution for every business which cares aboutoptimising the costs of fleet management,regardless of the number and type of vehicles. Wehave been trusted by thousands of customers; ourefforts in making the offer attractive and keepingthe highest standards have won us numerousawards and distinctions.

Fuel cards offered by BP are an important tool forall fleets regardless of their size, type or operatingarea. We offer a comprehensive service package,assisting owners of transport companies in everysituation. They have access to a network of over20,000 stations run by our company and trustedpartners, offering safety, online tools for managingand administration, favourable commercial termsand a wide range of additional services.

We strongly believe that a competitiveadvantage in business starts with believing invalues.

Consumers, employees and business ownersalike are very much aware of the impact andpotential of their activities. Numerous globalstudies show that an increasing number of peoplelook at the values the potential employer believesin before they are ready to join the team.Nowadays, the high quality of products and

services is considered to be a standard deal by aninformed consumer. Customers expect a brand tooffer a product, as well as a set of values reflectinga socially responsible behaviours. Mere product-vs-product competition between market players isno longer sufficient. Developing technologies, rapidchanges on the market and high awarenessamong consumers give value-driven businesses asubstantial competitive edge.

Corporate social responsibility is an element ofmanaging various aspects of a business, includinghuman resources, finances, as well as legal,commercial and marketing affairs.

In BP we believe that business and its successdepend on people, and helping is part of humannature. We are positive that the people who workfor BP in Poland and our customers have socialresponsibility in their genes. We set ourselves agoal to stimulate the helping that gene whereverpossible.

BP Poland is committed to addressing socialproblems locally by introducing innovativesolutions to assistance programmes in liaison withselected social partners, promoting smart helpingand supporting its employees and the causesclose to their hearts, and believes in responsiblebehaviour towards the environment. We liveaccording to the BP values embedded in our Codeof Conduct.

We seek to make the best use of the opportunitiesavailable to the corporate world and the naturalhuman willingness to help in order toaccommodate real needs. We have received theBenefactor of the Year award three times.However, it is not the awards that give us theenergy. Our biggest success is having activatedthe helping gene in so many people, including ourbusiness and social partners, and our customersrefuelling their cars at our service stations on adaily basis. All of them may donate points collectedin the Payback loyalty scheme to TOPR (TatraMountain Volunteer Rescue Service), PAH (PolishHumanitarian Action), Siemacha association,

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the Fields of Hope, Szlachetna Paczka (‘NobleGift’) and the Academy of the Future.

Over 25 years of our presence in Poland, we haveamassed a great number of awards anddistinctions, including the recent Corporate SocialResponsibility Award 2018, a prestigious award forthe sum of all activities implemented for the benefitof local communities.

Bibby: British business attitudeapplied to Polish firms’ financialneeds

By Jerzy Dąbrowski, director general of BibbyFinancial Services Sp. z o.o.

The Polish branch of Bibby Financial Servicesis part of the Bibby Line Group, a diverse,£1 billion global business, operating in 16countries, employing around 4,000 people insectors including retail, financial services,distribution, shipping, marine and constructionequipment hire.

One of the UK’s oldest family-owned business,Bibby Line Group has over 200 years’ experienceof providing personal, responsive and flexiblecustomer solutions. The group’s headquarters arein Liverpool and they direct the overall groupstrategy as well as providing support to differentdivisions.

Bibby Line Group works alongside communities tominimise its environmental impact, while creatingsafe places for people to work and develop. Since2007, Bibby Line Group and its employees havedonated over £10 million and thousands ofvolunteering hours to over 1,000 charitable causes.

Bibby Financial Services in Poland

Bibby Financial Services in Poland wasestablished in 2002. As part of the

financial services business within the Bibby LineGroup, it helps Polish SMEs grow and developfast.

Bibby Financial Services’ main activity is invoicefinancing (factoring) which helps unlock money fora range of scenarios, including cash-flow funding,new equipment purchase, growth and expansion,management buy-ins and buy-outs, and corporaterestructuring. Bibby Financial Services also offerscomplementary services such as foreign businesspartners’ credibility check or due-debts collection.

Bibby Financial Services works mainly with SMEsoperating in transport (national and international),manufacturing and processing, however theservices offered by the company are not limited tocertain economy sectors and pretty much anyenterprise can seek Bibby Financial Services’ help.

Steady growth over the years

Since its establishment in 2002, Bibby FinancialServices has been steadily growing. Today, thecompany employs 120 employees in threelocations in Poland – the headquarters in Warsawand regional offices in Poznań and Katowice. BibbyFinancial Services is an independent financialinstitution, which is an asset on the Polish marketdominated by large banks.

The last year was a record 12 months for thecompany – revenue rose by 22% and the numberof clients exceeded 800 for the first time. JerzyDąbrowski, general manager is convinced thatBibby Financial Services in Poland has a robustbusiness model and foresees another good yearwith similarly good results. Although someeconomic slowdown is to be expected, the risingprices of raw materials and rather poor paymentdiscipline should account for further developmentof the invoice financing market in Poland.

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Broadway Malyan’s Warsawstudio come of age

First launched in 2001, the studio has beensteadily building its portfolio across a numberof sectors and as it celebrates 18 years in thePolish capital, it is embarking on some of itsmost exciting projects to date.

The studio in the capital’s main commercial districtis led by director Robert Kaminski who feels thatthe opportunities for the practice in Poland andacross Central and Eastern Europe have neverbeen greater.

“In terms of the economy and overall investment,this is a very exciting period for Poland and thewider region,” he said.

“When Broadway Malyan decided to open itsstudio in Warsaw, it was very much one ofEurope’s emerging economies and it was aninvestment based on our belief that Poland had theaspirations and economic fundamentals forsignificant growth in the years ahead.

“Since then Poland’s GDP has almost doubled insize and wages have grown by a quarter over thepast ten years. This has had a significant impacton standards of living generally and overallspending power and as such, we are seeing recordlevels of investment across a number of keysectors.”

Broadway Malyan was originally founded in the UKin 1958 and the Warsaw studio is part of a networkof 13 international studios, a network that allowsthe practice to provide a comprehensive service toall its clients and also helps the practice betternavigate challenges such as Brexit.

Mr Kaminski says: “Broadway Malyan is a trulyinternational practice but it also still has half of itsworkforce in the UK, many of whom are from theEU; like many other businesses we are waiting tosee what the impact of Brexit might be.

“However, there are always global challenges,whether it’s a trade war between America andChina or fluctuations in oil prices and exchangerates, these have to be managed and adapted to –it is the very essence of being a global business.

“While we don’t yet know what the overall impact ofBrexit may be, in Poland there is a very goodchance that it will actually support its long-termgrowth aspirations if we see a return of an upskilleddiaspora who can help elevate Poland’s economyto the next level.”

Over the past 18 years, the Warsaw studio hasdesigned and delivered a diverse portfolio ofprojects for a range of blue-chip clients in the retail,workplace, residential and master-planning sectorsand it is currently working on an assortment ofprojects that reflect the growing optimism in theregion – and the breadth of Broadway Malyan’sdesign expertise.

Recently completed projects

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that are due to open in 2019 include EPP/Echo’sGaleria Mlociny project, where Broadway Malyanhas designed an innovative new gastronomy zoneand rooftop terrace and Immochan’s Pushkino, anew 100,000m2 GLA shopping centre in Russia.

The studio also recently completed a major fit outproject for Citi in Warsaw, the year’s largestcommercial fit out in the city and it has since won asecond commission in an adjacent building.

Projects on the drawing board include theextension and refurbishment of several shoppingcentres in Poland and Russia for various clientsincluding NEPI Rockcastle and IKEA as well asthe refurbishment of the historic Dom TowarowyBracia Jabłkowscy department store in centralWarsaw and large residential-led regenerationproject in Lodz – all projects that reflect Poland’supward trajectory.

Mr Kaminski said: “In recent years investors havebeen acquiring well-priced assets and we are nowusing our international retail experience to helpthem reposition these assets with simplerefurbishments or more complex extensions andensuring they meet the expectations of the moderncustomer with the introduction with exciting andinnovative new formats.

“There has also been a steady interest in Warsawand other Polish cities from internationalbusinesses who are looking to take advantage ofPoland’s central location and increasingly skilledworkforce to relocate their shared services andbusiness process outsourcing operations, which isgenerating significant opportunities in theworkplace sector.

“We are also benefitting from the growingsignificance of mixed-use sustainabledevelopments, where the boundaries betweensectors is becoming increasing blurred andchanging urban lifestyles are driving exciting newsub-sectors like ‘build to rent’, developments thatare further enhancing Poland’s reputation as adestination of choice for international

business and an upwardly mobile workforce.”

Lloyd’s in Poland – fromsyndicates to Lloyd’s InsuranceCompany

By Paweł Sukiennik, compliance officer, Lloyd’sPolska Sp. z o. o.

Over the past three centuries, Lloyd’sinsurance market was recognised as the onlyworldwide marine risks insurer to cover perilsat the sea.

Lloyds was known in Poland before the Partitionsand between the world wars, its renown is suchthat it remained a familiar institution throughoutcommunist times. Lloyd’s history, beginning as aLondon coffee house in which ship owners andmerchants would meet to insure their vessels andcargoes, goes back to 1686. Since 1871, when thefirst Act of Parliament was passed regulatingLloyd’s business.

For the Polish insurance market, Lloyd’s since thebeginning of the 20th century has been offeringhigh-limits specialty insurance and reinsurancepolicies for marine, aviation and industrial risks.However, its nowadays activity very much differsfrom its original picture.

In 2008 Lloyd’s established a permanent presencein Poland in the form of a service company, Lloyd’sPolska Sp. z o.o. having the status of a generalLloyd’s market representative. This made itpossible to obtain a Freedom of Establishmentlicence (in addition to a Freedom of Serviceslicence which it already had for Poland) and startdeveloping coverholders. These form a specifictype of distribution for specialised Lloyd’sinsurance products on the ground of a franchisingproject with delegated underwriting and claimsauthorities.

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Since the beginning of its activity Lloyd’s Polska isrepresented by country manager Witold Janusz.Today Lloyd’s Polska acts in close co-operationwith lawyers and advisors to support Lloyd’scoverholders and customers. As such Lloyd’sPolska does not provide insurance services in itsown right, but rather is a service and informationprovider for coverholders and customers. It alsoperforms some controlling and co-ordinationfunctions within Lloyd’s internal InternationalRegulatory Affairs department.

Since 2008 more than 10 coverholders have beenfounded and developed across Poland. What is themost characteristic for this project is that fact thatall ten are independent businesses capitalisedmostly by Polish citizens, specialists who formerlyperformed underwriting, claims and/or productdevelopment functions for Polish insurers. All ofthem have successfully completed an internalLloyd’s selection and acceptance process, endingin obtaining the so-called Binding AuthorityAgreement.

Nowadays our coverholders offer more than 20 lifeand non-life insurance products, grouped in linessuch as:

Extended warranties and GAP (Guaranteed AssetProtection)

Directors and Officers (D&O)

Personal accidents and loss of income

Cyber

Professional indemnity

Term life

Health

Aviation

Equine

Fine art.

Lloyd’s Polska leading coverholders in terms ofwritten premiums at the end of 2018 are: Wagas,offering extended warranties and GAP insurance,Leadenhall Polska, offering personal accidents andloss of income, D&O, professional indemnity andcyber insurance and CEU, offering personalaccident and loss-of-income insurance.

Through its coverholders, Lloyd’s has alreadyinsured tens of thousands of customers in Polandand developed a professional nationwide networkof distribution. Thanks to the Freedom of Serviceslicence, all Polish insurance brokers can activelyexercise placing business on the so-called ‘openmarket’, using the opportunity of cooperating withLloyd’s brokers in London. Thanks to all theseactivities, Lloyd’s Polish business has beengrowing every year by over 20%, topping 176million złotys in 2018 on insurance side and 161million złotys on the reinsurance one.

We are proud that thanks to the efforts of ourcoverholders, the last decade has seen Lloyd’sbecoming a local insurer, known to a wide group ofpotential customers, among which areprofessionals and premium-car owners. We areone of leading insurers to cover loss of income forprofessionals such as medical doctors with highestlimits achievable on the Polish market. We are alsoone of very few insurers to offer D&O policiesthrough a transaction IT system developed byLeadenhall Polska, also to directors and officers ofsmall- and medium-sized companies. Our latestproduct introduced to the Polish market is cutting-edge health insurance with a worldwide scope ofcover, offered by WDB Healthcare.

Lloyd’s market products have always beenrecognised as pioneering and excellent in terms ofscope of cover. Lloyd’s was the world’s firstinsurer to issue insurance policies for cars,aeroplanes and spacecraft. We have alwayssupported development of human creativity bytaking on the risk of the unexpected eventsresulting in loss. This is also one of the specific

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characteristics of Lloyd’s activity today. This hasalways been possible thanks to the uniquestructure of Lloyd’s market, consisting ofthousands of members organised in syndicates,ready to share an accepted risk and to takedecisions extremely quickly by signing the Lloyd’sbroker’s slip. We are widely open to cover risks ofthe new economy, such as cyber, drones orautonomous cars. In time, such insuranceproducts will be introduced to the Polish markettoo.

A few weeks after the UK Brexit referendum,Lloyd’s set up a team focused on reorganising itsEuropean activities. It decided to establish aseparate EU-based insurance undertaking. Thechoice was Brussels. Soon after taking thisdecision Lloyd’s established a Societe Anonymewith its headquarters in Belgium – and in theEuropean Union’s capital. The new establishmentis called Lloyd’s Insurance Company S.A., but wemost often use its short name – “Lloyd’s Brussels”.It became operative on the 1 January 2019. It isdedicated to provide insurance and reinsuranceservices to all EU customers previously servicedby Lloyd’s members (syndicates).

From the financial point of view Lloyd’s Brussels isa subsidiary of the Lloyd’s Corporation and iscapitalised according to the Solvency II directiverequirements. It is 100% reinsured by Lloyd’smembers (syndicates) and has 19 branch officesacross continental Europe, including Poland. Fromthe organisational point of view, the Lloyd’sBrussels Polish branch office is located at thesame address as Lloyd’s Polska and its generalrepresentative is also Witold Janusz. All Polishcoverholders have already been registered asLloyd’s Brussels agents, and all policies issuedstarting from 1 March 2019, indicate Lloyd’sInsurance Company S.A. as the insurer. We areconvinced that all our customers will accept thenew form of our activity as from the legal point ofview it is much clearer than it was in case ofLloyd’s members (syndicates) before. Now insteadof a number of insurers there is only one insurerindicated in the documents.

Flowcrete – CEE’s leading resinfloor producer

by Barbara Radziwon, managing director,Flowcrete Central & Eastern Europe

Flowcrete Poland today is a leadingmanufacturer and provider of resin floors inCentral and Eastern Europe.

Our company develops new resin flooringtechnologies, produces and supplies materials forthe application of high-quality resin floors whichcan be found in the most prestigious investmentprojects in Poland and abroad.

The company has been operating on the Polishmarket since 1994. It started its activities in Polandas a sales office of the Swedish company PerstorpConstruction Chemicals before undergoing aseries of ownership changes, and has beenoperating within Flowcrete structures and under thename Flowcrete Poland since 2002.

Flowcrete is a global company that produces resinflooring systems; it was founded in Great Britain in1982 by a British entrepreneur Peter Gibbins afterhe successfully invented a floor that could surviveexposure to large quantities of corrosive sugarwhich was used in manufacturing facilities of amajor confectioner. Since then the company hasgrown into a global business which today providesfloors for the world’s largest and most complexindustrial and commercial facilities.

This year Flowcrete Poland celebrates its 25thanniversary on the Polish market. During all theseyears the company has been systematicallygrowing and strengthening its position on the localmarket and in the region of CEE. As a team ofprofessionals, we have gained experience andunique expertise in resin flooring technology.Based on our know-how, we are able to offer tailor-made resin floors with various properties(mechanical, chemical and thermal,

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various degrees of anti-slip, diversified aesthetics),designed for use in different conditions, respondingto the individual needs of investors. These includefloor systems for specific industries (especiallyfood processing), car park floors, as well asdecorative floors used in the most upscale areas.

Flowcrete today is a market leader introducing newand innovative resin flooring solutions. Ourcompany has developed the original technology ofa resistant and durable Peran STB floor based ona clear epoxy resin and coloured quartz sandwhich has the highest abrasion resistance (classAR0.5) and is aesthetically pleasing thus widelyused in both industrial and commercialenvironments and also large-scale public facilitiessuch as the Warsaw Modlin Airport and CentrumHistorii Zajezdnia in Wrocław.

Flowcrete’s flagship product for car park facilities,Deckshield, is a durable and flexible polyurethane-based floor. The system can be appliedunderground and on external parking lots ofvarious size. It is also used on open decks onroofs and helicopter landing areas. Thanks to thecompetitive advantages including exceptionalcrack bridging properties, Flowcrete parking floorsare applied in the most prestigious buildingsincluding the highest office building in the capitalcity – Warsaw Spire, the largest office complex inLithuania – Quadrum Business City in Vilnius, thelargest shopping centre in Wielkopolska region –Posnania or the Szczecin Philharmonic Hall.

An important segment in our offer are industrialfloors, including Flowfresh anti-bacterial floorsused in the food industry. This antibacterialpolyurethane flooring range has been developed byFlowcrete to satisfy the highest possible hygienestandards. Flowfresh range offers the strength,durability and resilience of polyurethane resincombined with the natural cleaning power ofPolygiene agent – a silver-ion based antimicrobialadditive. Flowfresh is able to eliminate up to 99.9%of all bacteria landing on the surface of the floor.Our range of industrial floors comprises also anti-static floors made in plants producing

electronic equipment or floors resistant to aircraftfluids intended for plane services hangars.

For elegant public interiors Flowcrete offersMondéco – a terrazzo floor made of epoxy resinand marble aggregates which gives the effect ofpolished stone obtained by grinding and polishingits surface and also Rustik floors which are madeof colourful pieces of marble stones encapsulatedin a clear resin (so called "stone carpets").

Over the years, Flowcrete Poland has built anetwork of approved contractors in Poland andacross CEE which enables us to provide thehighest quality of the floors, covering all elements –material, technology and also the application.

Having a solid foundation for businessdevelopment in Poland, in 2012 Flowcrete openedits own R&D laboratory and production plant inWarsaw which allowed our company tosignificantly expand the scale of operations.Currently Flowcrete Poland exports resin floorsmaterials to 17 countries including Russia,Bulgaria, Romania, the Baltic States, the Balkansand at the same time is the largest producer ofFlowfresh antibacterial floors in the FlowcreteGroup globally. We are also a leading producer ofmembranes with crack bridging abilities.

Due to the development of export and expansion ofproduction, Flowcrete Polska increased itsemployment in last two years by over 20% and isstill developing, in particular the R&D department.As a result of the dynamic growth, in 2017 wemoved to a new, larger office and moved theproduction plant and warehouse to a new facility,twice as large as the previous one.

The decision to launch the production plant inWarsaw was a huge impulse for the developmentof Flowcrete Poland as a significant export centrein the Flowcrete Group for the whole region ofCentral and Eastern Europe, Russia and Balkans.Thanks to those investments, our company is notonly self-sufficient but also more than ready for thefuture, including changes that could be brought

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by Brexit. With lower production costs and betterlogistic, we are competitive and ready to furtherdevelop and strengthen our position in Europe.

Looking for talent in anemployee’s market

by Charles Carnall, managing director, HaysPoland

In the face of the recruitment challenges andthe candidate driven market observed inPoland, employers turn to HR experts forsupport.

Over the past 15 years of our operations on thePolish market, Hays Poland has managed to builda strong brand by providing necessary support toall employers struggling with recruitment forspecialist and managerial positions.

Being a part of Hays plc group – the world’sleading company in recruiting qualified,professional and skilled workers – we focus onbuilding valuable and long-lasting relationships withemployers all over the country by providing a widerange of recruitment and HR advisory services.Our mission is to be a reliable partner to employerssearching for top talent. On the other hand, weremember that people are at the heart of therecruitment business, and we work on ourpositioning as a trustworthy advisor to skilledcandidates, looking to make their career morerewarding, challenging and fulfilling. One of our keyinitiatives is to take part in events and industryconferences, as well as to actively participate invarious associations – such as BPCC. It helps usstrengthen our relationship with industry leadersand company policy makers, which in turn helps tofacilitate change in the Polish labour market for thebetter and adapt recruitment standards toemployers’ needs.

We can rightly call ourselves successful. With sixoffices and over 300 specialist

recruitment consultants employed at Hays Poland,we are one of the largest specialist recruitmentcompanies on the Polish market. Companiesacross various industries perceive us as atrustworthy business partner and turn to us foradvice – proof that Hays Poland is not only aservice provider, but also a knowledgeable marketexpert. Our British origin helps Hays Polandbecome the recruiter of choice for companies withUK and other foreign capital that have had apositive experience of working with Hays in othercountries. Among our clients are globalcorporations and start-ups, fintech companies andautomotive manufacturers, Polish and foreign-owned businesses. We’re valued for the quality ofservices provided, the diversity of our businessoffering, our global outlook and the high standardsassociated with the Hays brand the world over.

Our strategy is to change in accordance withdevelopments on the labour market that shapecompanies’ needs. Technological progressinfluences recruitment procedures, in terms of whowe are looking for and how we do it. New ITsolutions support employers in the way theyimplement their recruitment and retention strategy.As a result of the constantly changing needsobserved in many Polish industries, we adapt ouroffer to gain competitive advantage. Permanentrecruitment is not always the only good solution, sowe can also provide our clients with temporaryrecruitment services, IT contracting, outsourcingand executive search services. Companies’ needsdiffer; we offer tailor-made solutions to support thedecision-making process with tailored HR advisoryservices.

Forecasts from economists and business analystsindicate that economic growth will maintain itsmomentum over the next twelve months, albeit ata slightly slower pace than in 2018. A key area forfurther growth is investing in the competences ofthe future to help avoid a crisis in which we face agrowing shortage of employees with sought-afterskills. This represents for us an opportunity andchallenge at the same time.

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The situation on the Polish labour market getsmore and more complicated. Due to insufficientavailability of specialised candidates with specificcompetences and skills, companies areincreasingly competing for employees. Managersand HR departments need to develop anemployment strategy to meet high expectations ofcandidates. This means offering competitivesalaries as well as interesting career paths andpackages of relevant non-financial benefits. It isbecoming crucial to implement innovative solutionsand to change the key focus of recruitmentprocesses. When a skills shortage makes talentacquisition difficult – and in some cases evenimpossible – employers and professional recruitersalike need to transfer their attention from theirknowledge and professional experience to softskills and development potential.

Research conducted by Hays Poland in SalaryGuide 2019 shows that the majority of employersplan to undertake activities directed at preventingemployees from leaving the company. 87% ofemployers participating in the survey declared thattheir HR strategy for 2019 includes employing newstaff. At the same time, 91% of companies expectto face recruitment challenges, mainly resultingfrom the lack of suitable candidates and highexpectations of candidates. To solve the problemof a candidate shortage in forthcoming months,companies most often plan to employ temporaryand contract workers, organise internshipprogrammes and strengthen their employer brandon the market.

Salary range remains the key factor taken intoconsideration by candidates who are consideringchanging jobs or are already talking to their nextemployer. Non-financial benefits are howeverequally as important. Hays Salary Guide showsthat apart from the financial aspect of employment,candidates consider leaving their job due to thelack of career development opportunities in theircurrent company, location, character of performedduties and their difficulty to achieve work-lifebalance. Companies try to meet growingexpectations of their employees and

adapt the offer to their needs such as bysystematically planning salary raises and creatingclear career paths in their structures. However,specialists motivated by the candidate market, arestill largely planning to change jobs. Forbusinesses such as Hays, this increase inrecruitment activity allows us to help morecompanies and candidates to find motivatedemployees or the perfect job.

Process automation and progressive digitalisationof the world of work is expected to influence theopportunities available to people. Someprofessions will disappear and tasks will be takenover by robots and artificial-intelligence basedsolutions. This is a considerable concern forprofessionals and for the recruitment and HRbusinesses. On the other hand, broad use ofadvanced technological solutions in business willcreate new roles and professions, many of whichto this day remain unknown. Technologicallyadvanced companies will recruit experts able toprogram and operate various machines and AIsolutions as well as professionals specialising indata analysis. Therefore, even though recruitmentprocedures will become more and moretechnologically advanced and a growing number ofrepetitive or administration-related tasks will beadministered by software, recruitment experts willbe needed. The human factor is absolutelynecessary for successful recruitment as noalgorithm or artificial intelligence can assesswhether a given candidate fits a certainorganisation or a team. Technologicaladvancement is indisputably a challenge torecruitment companies, but not one that we cannotovercome.

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