Philip M. Parker-Renewable Energy Equipment in Poland - A Strategic Reference, 2007 (2007)

Renewable Energy Equipment
in Poland:
A Strategic Reference, 2007
Edited by
Philip M. Parker, Ph.D.

Eli Lilly Chair Professor of Innovation, Business and Society
INSEAD (Fontainebleau & Singapore)
www.icongrouponline.com
2007 Icon Group International, Inc.
ii
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Table of Contents
1
INTRODUCTION & METHODOLOGY.............................................................................1
1.1
What Does This Report Cover?
1.2
How to Strategically Evaluate Poland
1.3
Latent Demand and Accessibility in Poland
2
2.1
RENEWABLE ENERGY EQUIPMENT IN POLAND ......................................................5

Latent Demand and Accessibility: Background
2.2
Latent Demand: Aspects of Interest
5
2.2.1
Market Data................................................................................................................................................ 5
2.2.2
Laws and Regulations ................................................................................................................................ 7
2.3
Latent Demand: Best Prospects
2.4
Accessibility: The Structure of Competition
10
2.4.1
Marketing Strategies and Business Practices ........................................................................................... 10
2.4.2
Domestic Production and 3rd Country Imports........................................................................................ 10
2.4.3
Heat Production Equipment ..................................................................................................................... 10
2.4.4
Electricity Production Equipment ............................................................................................................ 11
2.5
Accessibility: U.S. Presence
12
2.6
Latent Demand: Target Buyers
12
2.7
Accessibility: Financing Strategies
13
2.7.1
Local Financial Sources ........................................................................................................................... 14
2.7.2
Grants ....................................................................................................................................................... 15
2.8
Market Issues and Obstacles
15
2.8.1
Customs.................................................................................................................................................... 15
2.8.2
Excise Tax ................................................................................................................................................ 16
2.8.3
VAT.......................................................................................................................................................... 16
2.8.4
Safety Certificates .................................................................................................................................... 16
2.9
Key Contacts
17
2.9.1
Trade Event .............................................................................................................................................. 17
2.9.2
Industry Associations ............................................................................................................................... 17
2.9.3
Financial Institutions ................................................................................................................................ 19
3 FINANCIAL INDICATORS: STEAM, GAS AND HYDRAULIC TURBINES AND

TURBINE GENERATOR SET UNITS .....................................................................................20
3.1
Overview
20
3.1.1
Financial Returns and Gaps in Poland...................................................................................................... 21
3.1.2
Labor Productivity Gaps in Poland .......................................................................................................... 24
3.1.3
Limitations and Extensions ...................................................................................................................... 24
3.2
Financial Returns in Poland: Asset Structure Ratios
25
Contents
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
Overview .................................................................................................................................................. 25
Assets Definitions of Terms .................................................................................................................. 25
Asset Structure: Outlook .......................................................................................................................... 26
Large Variances: Assets ........................................................................................................................... 27
Key Percentiles and Rankings .................................................................................................................. 30
3.3
Financial Returns in Poland: Liability Structure Ratios
43
3.3.1
Overview .................................................................................................................................................. 43
3.3.2
Liabilities and Equity Definitions of Terms .......................................................................................... 43
3.3.3
Liability Structure: Outlook ..................................................................................................................... 45
3.3.4
Large Variances: Liabilities ..................................................................................................................... 46
3.3.5
3.4
Financial Returns in Poland: Income Structure Ratios
60
3.4.1
Overview .................................................................................................................................................. 60
3.4.2
Income Statements Definitions of Terms .............................................................................................. 60
3.4.3
Income Structure: Outlook ....................................................................................................................... 62
3.4.4
Large Variances: Income.......................................................................................................................... 63
3.4.5
3.5
Financial Returns in Poland: Profitability Ratios
77
3.5.1
Overview .................................................................................................................................................. 77
3.5.2
Ratios Definitions of Terms .................................................................................................................. 77
3.5.3
Ratio Structure: Outlook .......................................................................................................................... 79
3.5.4
Large Variances: Ratios ........................................................................................................................... 80
3.5.5
3.6
Productivity in Poland: Asset-Labor Ratios
98
3.6.1
Overview .................................................................................................................................................. 98
3.6.2
Asset to Labor: Outlook ........................................................................................................................... 98
3.6.3
Asset to Labor: International Gaps........................................................................................................... 99
3.6.4
Key Percentiles and Rankings ................................................................................................................ 102
3.7
Productivity in Poland: Liability-Labor Ratios
115
3.7.1
Overview ................................................................................................................................................ 115
3.7.2
Liability to Labor: Outlook .................................................................................................................... 115
3.7.3
Liability and Equity to Labor: International Gaps.................................................................................. 116
3.7.4
3.8
Productivity in Poland: Income-Labor Ratios
130
3.8.1
Overview ................................................................................................................................................ 130
3.8.2
Income to Labor: Outlook ...................................................................................................................... 130
3.8.3
Income to Labor: Gaps ........................................................................................................................... 131
3.8.4
4
4.1
MACRO-ACCESSIBILITY IN POLAND........................................................................145
Executive Summary
145
4.2
Economic Fundamentals and Dynamics
145
4.2.1
Government Intervention Risks.............................................................................................................. 145
4.2.2
Balance of Payments Issues ................................................................................................................... 145
4.2.3
Infrastructure Development.................................................................................................................... 146
4.2.4
Regional Economic Integration.............................................................................................................. 146
Contents
4.2.5
vi
Economic Relationship with the United States ...................................................................................... 146
4.3
Political Risks
147
4.3.1
Relations between National and Provincial Leaders .............................................................................. 147
4.3.2
The Political System............................................................................................................................... 147
4.4
Marketing Strategies
148
4.4.1
Distribution Channel Options................................................................................................................. 149
4.4.2
Agents and Distributors.......................................................................................................................... 151
4.4.3
Franchising Activities............................................................................................................................. 151
4.4.4
Direct Marketing Options....................................................................................................................... 153
4.4.5
Joint Ventures and Licensing Options.................................................................................................... 154
4.4.6
Creating a Sales Office........................................................................................................................... 154
4.4.7
Selling Strategies.................................................................................................................................... 155
4.4.8
Advertising and Trade Promotion .......................................................................................................... 156
4.4.9
Pricing Issues.......................................................................................................................................... 158
4.4.10 Public Sector Marketing......................................................................................................................... 158
4.4.11 Hiring Local Counsel ............................................................................................................................. 159
4.5
Import and Export Regulation Risks
159
4.5.1
Trade Barriers......................................................................................................................................... 159
4.5.2
Tariff Rates............................................................................................................................................. 161
4.5.3
Licenses Required for Imports ............................................................................................................... 161
4.5.4
Entering Temporary Imports .................................................................................................................. 162
4.5.5
Special Import/Export Requirements and Certifications ........................................................................ 162
4.5.6
Local Standards ...................................................................................................................................... 163
4.5.7
Free Trade Zone Options........................................................................................................................ 164
4.5.8
Adherence to Free Trade Agreements .................................................................................................... 164
4.6
Investment Climate
164
4.6.1
Openness to Foreign Investment ............................................................................................................ 164
4.6.2
Conversion and Transfer Policies........................................................................................................... 167
4.6.3
Expropriation and Compensation ........................................................................................................... 168
4.6.4
Dispute Settlement ................................................................................................................................. 169
4.6.5
Trade-Related Investment Measures (TRIMs) ....................................................................................... 169
4.6.6
Right to Private Ownership and Establishment ...................................................................................... 170
4.6.7
Intellectual Property Risks ..................................................................................................................... 171
4.7
Transparency of the Regulatory System
172
4.7.1
Capital Market Risks .............................................................................................................................. 172
4.7.2
Political Violence ................................................................................................................................... 174
4.7.3
Corruption .............................................................................................................................................. 174
4.7.4
Bilateral Investment Agreements ........................................................................................................... 175
4.7.5
OPIC and Other Investment Insurance................................................................................................... 177
4.7.6
Labor ...................................................................................................................................................... 177
4.7.7
Free Trade Zone Options........................................................................................................................ 178
4.7.8
Foreign Direct Investment...................................................................................................................... 178
4.8
Trade and Project Financing
179
4.8.1
The Banking System .............................................................................................................................. 179
4.8.2
Foreign Exchange Control Risks............................................................................................................ 180
4.8.3
Financing Exports .................................................................................................................................. 180
4.8.4
Import Financing .................................................................................................................................... 180
4.8.5
Export Financing Options ...................................................................................................................... 180
Contents
4.8.6
vii
Available Project Financing ................................................................................................................... 182
4.9
Travel Issues
186
4.9.1
Local Business Practices ........................................................................................................................ 186
4.9.2
Security Advisories ................................................................................................................................ 186
4.9.3
Local Holidays Observed ....................................................................................................................... 187
4.9.4
Infrastructure for Conducting Business.................................................................................................. 188
4.9.5
Country Data .......................................................................................................................................... 188
4.10 Key Contacts
189
4.10.1 U.S. Embassy Trade-Related Contacts................................................................................................... 189
4.10.2 Chambers of Commerce and Bilateral Business Councils ..................................................................... 190
4.10.3 Market Research Firms .......................................................................................................................... 192
4.10.4 Commercial Banks ................................................................................................................................. 192
4.10.5 Multilateral Development Bank Offices in Poland ................................................................................ 193
4.10.6 Contacts in the U.S................................................................................................................................. 194
4.10.7 Trade Associations ................................................................................................................................. 194
DISCLAIMERS, WARRANTEES, AND USER AGREEMENT PROVISIONS .........197
5.1
Disclaimers & Safe Harbor
197
5.2
Icon Group International, Inc. User Agreement Provisions
198
1
1.1
INTRODUCTION & METHODOLOGY

WHAT DOES THIS REPORT COVER?
The primary audience for this report is managers involved with the highest levels of the strategic
planning process and consultants who help their clients with this task. The user will not only
benefit from the hundreds of hours that went into the methodology and its application, but also
from its alternative perspective on strategic planning relating to renewable energy equipment in
Poland.
As the editor of this report, I am drawing on a methodology developed at INSEAD, an
international business school (www.insead.edu). For any given industry or sector, including
renewable energy equipment, the methodology decomposes a countrys strategic potential along
four key dimensions: (1) latent demand, (2) micro-accessibility, (3) proxy operating pro-forma
financials, and (4) macro-accessibility. A country may have very high latent demand, yet have
low accessibility, making it a less attractive market than many smaller potential countries having
higher levels of accessibility.
With this perspective, this report provides both a micro and a macro strategic profile of renewable
energy equipment in Poland. It does so by compiling published information that directly relates
to latent demand and accessibility, either at the micro or macro level. The reader new to Poland
can quickly understand where Poland fits into a firms strategic perspective. In Chapter 2, the
report investigates latent demand and micro-accessibility for renewable energy equipment in
Poland. In Chapters 3 and 4, the report covers proxy operating pro-forma financials and macroaccessibility in Poland. Macro-accessibility is a general evaluation of investment and business
conditions in Poland.
1.2
HOW TO STRATEGICALLY EVALUATE POLAND
Perhaps the most efficient way of evaluating Poland is to consider key dimensions which
themselves are composites of multiple factors. Composite portfolio approaches have long been
used by strategic planners. The biggest challenge in this approach is to choose the appropriate
factors that are the most relevant to international planning. The two measures of greatest
relevance to renewable energy equipment are latent demand and market accessibility. The
figure below summarizes the key dimensions and recommendations of such an approach. Using
these two composites, one can prioritize all countries of the world. Countries of high latent
demand and high relative accessibility (e.g. easier entry for one firm compared to other firms) are
given highest priority. The figure below shows two different scenarios. Accessibility is defined
as a firms ease of entering or supplying from or to a market (the supply side), and latent
demand is an indicator of the potential in serving from or to the market (the demand side).
Introduction & Methodology
Framework for Prioritizing Countries

Demand/Market Potential Driven Firm
High
Highest
Priority
High
Priority
Latent
Demand
Moderate
Priority
Low
Priority
Low
Lowest
Priority
Low
High
Relative Accessibility
Accessibility/Supply Averse Firm

High
Highest
Priority
High
Priority
Latent
Demand
Moderate
Priority
Low
Priority
Lowest
Priority
Low
High
Low
Relative Accessibility
In the top figure, the firm is driven by market potential, whereas the bottom figure represents a
firm that is driven by costs or by an aversion to difficult markets. This report treats the reader as
coming from a generic firm approaching the global market neither a market-driven nor a costdriven company. Planners must therefore augment this report with their own company-specific
factors that might change the priorities (e.g. a Canadian firm may have higher accessibility in
Canada than a German firm).
1.3
LATENT DEMAND AND ACCESSIBILITY IN POLAND
This report provides a detailed overview of factors driving latent demand and accessibility for
renewable energy equipment in Poland. Latent demand is largely driven by economic
fundamentals specific to renewable energy equipment. This topic is discussed in Chapter 2 using
work carried out in Poland on behalf of American firms and authored by the United States
government (typically commercial attachs or similar persons in local offices of the U.S.
Department of State). I have included a number of edits to clarify the information provided.
Latent demand only represents half of the picture. Chapter 2 also deals with micro-accessibility
for renewable energy equipment in Poland. I use the term micro since the discussion is focused
specifically on renewable energy equipment.
Chapter 3 is also a stand-alone report that I have authored. It covers proxy pro-forma financial
indicators of firms operating in Poland. I use the word proxy because the provided figures only
cover a what if scenario, based on actual operating results for firms in Poland. The numbers
are only indicative of an average firm whose primary activity is in Poland. It covers a vertical
analysis of the maximum likelihood balance sheet, income statement, and financial ratios of firms
operating in Poland. It does so for a particular Standard Industrial Classification (SIC) code.
That code covers steam, gas and hydraulic turbines and turbine generator set units, as defined
in Chapter 3. Again, while steam, gas and hydraulic turbines and turbine generator set units
does not exactly equate to renewable energy equipment, it nevertheless gives an indicator of
how Poland compares to other countries for a proxy adjacent category along various dimensions.
Chapter 4 deals with macro-accessibility and covers factors that go beyond renewable energy
equipment. A country may at first sight appear to be attractive due to a high latent demand, but it
is often less attractive when one considers at the macro level how easy it might be to serve that
entire potential and/or general business risks. While accessibility will always vary from one
company to another for a given country, the following domains are typically considered when
evaluating macro-accessibility in Poland:
Openness to Trade in Poland
Openness to Direct Investment in Poland
Local Marketing and Entry Strategy Alternatives
Local Human Resources
Local Risks
Across these domains, a number of not-so-obvious factors can affect accessibility and risk. These
are covered in the Chapter 4, which is a general overview of investment and business conditions
in Poland. Chapter 4 is also presented from the perspective of an American firm, though is
equally applicable to most firms entering Poland. This chapter is also authored by local offices of
the U.S. government, as is Chapter 2. Likewise, I have included a number of edits to clarify the
provided information as it relates to the general strategic framework mentioned earlier.
RENEWABLE ENERGY EQUIPMENT IN POLAND
2.1
LATENT DEMAND AND ACCESSIBILITY: BACKGROUND
This report focuses on the market for renewable energy sources and its utilization and potential in Poland. The report
also lists examples of renewable energy installations in Poland. This report also aims at providing insights to U.S.
businesses that might be interested in investment or joint-venture cooperation within this industry sub-sector.
Poland has very favorable technical and economical factors for renewable energy. Poland has begun to experience a
shift and political and public support away from traditional fossil fuels and toward the development of renewable
energy resources. Poland has established a target of 10.4% of energy production from renewable sources by 2010,
and to continue with this target till 2014. These targets were set forth in Ministry of Economy regulation of
November 3rd, 2006. Utilities are required to purchase electricity from renewable sources, and prices are regulated by
tariffs. Producers of green energy can apply for green certificates that are tradable on global energy stock exchange
markets.
Biomass and wind appear to be the most promising renewable energy resources for development in Poland, with an
estimated potential of about 4,000 MWe each. Both liquid and solid biomass are considered to be the main sources of
renewable energy in Poland, for both electricity and thermal energy production. Biomass technologies and supply
sources are relatively mature, and the investment costs are lower than for other maturing renewable energy
technologies. Poland also has some of the best documented wind resources in Central and Eastern Europe with areas
reaching up to 1,000 W/m2 in power density.
2.2
2.2.1
LATENT DEMAND: ASPECTS OF INTEREST

Market Data
Political, legal and financial aspects of renewable energy source utilization in Poland have been adjusted according to
what the country committed when signing EU accession treaty. The technical potential of renewable energy sources
in Poland is estimated at 3,850 PJ per year, meaning that almost 90% of primary energy consumption can be covered
by RES in Poland. Geothermal, solar and biomass energy has the highest technical potential (respectively: 1,512 PJ,
1,340 PJ, 619 PJ per year). Resources of water and wind energy are much lower (technical potential, respectively, 43
PJ and 36 PJ per year). Wave and tidal potential energy has not been fully assessed.
In 2005 production of energy from RES was estimated at 3,760,301 MWh:
2,175,559 MWh generated from water energy.
467,975 MWh of thermal and electric energy generated from biomass (heat from wood, straw and biogas
energy, power from biogas and landfill gas energy).
135,291 MWh from wind mills.
104,465 MWh from biogas.
877,009 MWh from co-firing installations.*
* Registered by Energy Regulation Office URE on August 8, 2006.
According to the European Bank for Reconstruction and Development Poland is one of the most promising wind
energy markets in Europe. The country possesses many potentially profitable locations and great development
possibilities. Much of Poland has favorable conditions for wind energy production where the average wind speed
varies between 5.5 and 7.0 m/s at a height of 50 meters. Assessed productivity of one 2MW turbine may be equal to
as much as 5 thousand MWH per year. A country wide wind atlas is available which indicates that an area in the
north-west has wind speeds above 6m/s at 10 m. The Baltic coast, one large central area and an area to the north have
wind speed of 5m/s. There is currently only 108 MW of wind energy capacity installed in Poland.
Wind Speeds
Source: Wind Atlas of Poland

Biomass is the most promising source of renewable energy in Poland. The technical potential of biomass amounts to
755 PJ/year, and the greatest opportunities for biomass technology implementation are in the forestry, wood
processing and agriculture sectors. The majority of current biomass use is as heat for and small and medium scale
boilers in industrial settings and the most common fuel are wood pieces, sawdust, and wood shavings. Combined
heat and power (CHP) plants using organic waste from pulp and paper operations, and straw and wood fired heating
plants are also in operation. Biogas production from landfill gas and municipal waste is also available. In 2002 there
were approximately 25 landfill gas installations producing 22.3 GWh of electricity and 100 TJ of heat. Biogas
production from municipal waste resulted in about 38 GWh of electricity and 450 TJ of heat. About 47% of the land
area of Poland, about 14 million ha, consists of arable and agricultural lands. Nearly 9 million ha is forested,
approximately 28%. It is estimated that the total forest cover in Poland will reach 32% in the next 15 years. There are
very good opportunities for biomass development in Poland. The areas with the most potential for biomass/biogas
projects are those in the northern and western regions, rural and mountainous regions, as well as the eastern border of
Belarus.
Solar radiation intensity in Poland heavily favors the spring and summer months, with approximately 80% of the
annual insulation falling during this period. The installed solar photovoltaic capacity amounts only 300 kW where
only 70kW is connected to the grid. Some liquid and air solar heat collectors are used in Poland. Air units are
primarily used for grain drying, while liquid units are generally employed for space and hot water heating in homes
and other buildings. One potential of solar energy in the country is estimated as 370 PJ/yr. The technical potential for
solar energy according to the EC BRECs studies of the year 2000 gives an annual technical potential energy as 1340
PJ/yr. This number varies greatly in different studies. It is obvious that a country wide extensive research on the
technical and economical feasibility of solar energy is needed.
Poland has a sizable reserve of geothermal energy that is rich in low enthalpy resources, although there is little in the
form of naturally occurring thermal springs or outflows. The country is characterized by large-scale low enthalpy
resources which are contained in 3 sedimentary provinces which cover approximately 80% of the total land area.
Currently the country utilizes the resources mainly for space heating and therapeutic purposes, although there are
experimental projects regarding fish farming, timber-drying and greenhouse heating. Current installed capacity is
approximately 69 MWt, of which 26 MWt is from heat pumps, which collectively generate 274 TJ of energy on an
annual basis. The Polish Geothermal Association (PGA) has been pushing for an increase in the use and awareness of
the countrys resources. While Poland has set aggressive goals concerning renewable energy to be met in 2010 and
2020 respectively, it is viewed that the majority of the renewable energy development will be in the biomass sector.
Geothermic Plants
Source: Polish Geothermal Association

Hydro power will probably remain the second largest renewable energy source with limited possibilities of further
growth. The Polish hydro power resource is small due to the limited and unfavorable distributed rainfall, high soil
permeability and relative flatness of the country. The total installed capacity of large hydro-electric power stations is
approximately 340 MW and 185 MW of small hydro. The total technical potential of hydro energy is equal to 49
PJ/year, of that, 6 PJ/year is from small hydro. As for the small hydro plants, approximately 1,000 plants could be
built with a total capacity of 200 MW and estimated electric energy production 1,000 GWH/year. Due to limited
water resources in Poland, the installed power of most of the small hydro plants is below 100 kW. Such power
stations offer a chance of improving the very poor runoff coefficient, particularly on small rivers. What is also
important is the local retention of water. Small hydro takes advantage of the local potential for electricity generation
thus providing a source of income to a group of people, usually in areas with a high unemployment rate. The power
output of existing hydro-electric power stations may be increased by 20-30% through modernization of the
generators.
2.2.2
Laws and Regulations
Polands RES market is regulated by the Energy Law issued on April 1997 and published in the Journal of Law
Dz.U. 1997 No 54 and its amendment from March 4th, 2005. This law was modified with the regulation issued by the
Ministry of Economy on November 3, 2006. This regulation sets targets of green energy to be produced until 2014.
According to the Energy Law, all entities dealing with the trade of heat and electrical energy are obligated to
purchase offered green energy from the producers based in Poland. The amount of this energy is determined by
regulation and is as follows:
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
3.1%
3.6%
5.1%
7%
8.7%
10.4%
10.4%
10.4%
10.4%
10.4%
In case these entities do not comply with the regulation, the Energy Regulation Office will be entitled to impose a
special charge of $80/MWh for each missing MW of green energy in the total energy balance of the entity.
Green energy production and purchase are confirmed by green certificates referred to as certificates of origin.
These certificates are issued by the Energy Regulation Office URE and are tradable accordingly to the Commodities
Market Law of October 26, 2000. The current price of green certificate amounts to approximately $80.
2.3
LATENT DEMAND: BEST PROSPECTS
At the moment, utilization of RES is very low and according to the official statistics is about 2.8% of the primary
energy consumption. Till now, the only relatively popular renewable energy sources have been wood and hydropower. However, utilization of other renewable energy sources has been dynamically developing in the last few
years, especially as far as straw, wind, landfill gas and geothermal energy are concerned.
In 2005, total direct consumption of final energy (heat, electricity, fuels, etc) in Poland was 708,261 GWh. Based on
official data regarding existing renewable energy installations, final consumption of energy derived from RES
reached 17,706 GWh, which was about 2.5% of the total consumption in 2005.
Growing Role of Biomass in Renewable Energy, 2005
Source: Institute for Renewable Energy, Warsaw
Technical Potential for Renewable Energy Sources (RES) vs. Market Penetration
(GWh)
RES
Wind
Hydropower
Solar
Wood
Straw, etc.
Solid Waste
Biogas
Liquid Biofuels
Geothermal
Current Utilization
8
2,500
7
1,000
50
0
75
1,500
900
Technical Potential
10,000
10,000
500,000
200,000
75,000
50,000
20,000
10,000
500,000
Source: EC Baltic Renewable Energy Center/IBMER, Warsaw
Best Selling Prospects with Harmonized System Codes

8402
8402
8402
841919
8418
8407
854140
841280
841011
Wood-fired boilers
Fluidized-bed boilers
Straw-fired boilers
Solar water thermal collectors
Geothermal heating pumps
Spark ignition engines generating electricity from biogas at wastewater treatment plants and
landfill gas
Photovoltaic cells
Wind turbines
Hydro-power plants turbines
2.4
2.4.1
10
ACCESSIBILITY: THE STRUCTURE OF COMPETITION

Marketing Strategies and Business Practices
Foreign technology companies have many competitive advantages over local ones, typically offering newest
technology, more experience and greater organizational capabilities. They also have access to leading international
experts that domestic firms do not.
Most successful foreign companies on the Polish market have representative offices in Poland. They participate in
major trade events and actively cooperate with Polish Environmental Institutes. If a company is not yet ready to
establish its own office in Poland, we suggest finding a local Polish partner. In this manner American know-how will
be augmented by local awareness of the market, regulations, habits, and informal procedures.
U.S. presence in showcase projects is highly recommended and may create substantial interest for U.S. products and
services in the market. U.S. companies interested in expanding into the Polish market should spend time and effort
promoting their services and technology. American firms should participate in Polish trade shows, establish contacts
with Polish companies and institutions, and advertise in local trade publications.
Important factors for Polish companies and officials include post-sale maintenance, equipment service and spare
parts accessibility. U.S. companies should convince their Polish partners and possible investors that they are ready to
provide this.
For equipment manufacturers another option is to contact a Polish company specializing in import and distribution
only. They usually sell the equipment to the investors.
2.4.2
Domestic Production and 3rd Country Imports
The Polish market offers investors domestic and imported RES technologies and equipment. The number of Polish
companies include: 23 producers of biomass-to-heat equipment, 10 producers of small hydro turbines, 2 producers of
biogas-to-power engines, 7 producers of solar panels, and 2 producers of wind turbines.
The local market is dominated by domestic companies and companies from neighboring countries, specifically from
those offering financial assistance and those having a strong interest in establishing a presence in Central and Eastern
Europe. This applies to foreign companies offering technical assistance, technologies, and equipment. Polands
accession to the European Union offered companies from the European economic area enormous possibilities of
financing their RE projects here. Since May 1st, 2004 when Poland acceded to the EU, all structural funds prospects
are open to bidders worldwide.
2.4.3
Heat Production Equipment
Wood
At present there are at least 7 local manufacturers and 5 importers of wood-fired boilers with capacities from 20 to
150 kW in Poland. One local company specializes in small-scale fluidized-bed boilers (0.5-2.5 MW) adjusted to the
use of wood chips. 16 producers and importers offer technologies with capacities larger than 150 kW (up to 10 MW).
Small-scale installations are capable for individual houses, farms and small firms; larger ones are capable for local
heating plants.
11
European Union technologies are mainly imported from Denmark, Finland, Germany, Austria and France. Both local
and EU boilers offered currently on the Polish market represent a wide range of products ranging from manually
operated low-tech technologies to high automatic and computerized systems. However, only a few
manufacturers/suppliers offer full turn-key solutions. There are no manufacturers and suppliers of small-scale cogeneration units based on the use of biomass fuel.
Straw
Currently on the Polish market there are at least five manufacturers and several importers of straw-fired boilers
offering equipment with a capacity range from 30 kW to 3.5 MW. Small-scale technologies are suitable for
individual houses and farms; larger ones are suitable for local heating plants. Most of the Polish designs for strawfired DHP are low- and medium-tech though relatively inexpensive. However, most existing straw-fired DHP
implemented up until now use Danish technologies, which are typically high-tech, fully automatic systems.
Anaerobic Digestion
Poland does not have a dedicated industry to manufacture installations for anaerobic digestion of animal manure,
sewage sludge or organic effluents from food-processing. However, there are several workshops, producing and
installing installations mainly at wastewater treatment plants. Biogas from animal manure up till now has been
typically used only for heat production.
Solar Thermal
Approximately 20 suppliers of solar water thermal collectors offer essential components in Poland. Four manufacture
solar equipment using their own designs. Such collectors typically use selective absorbers coated by black chromium
and water tubes made of copper. Other suppliers usually offer equipment made in the EU and/or North America.
However, at the moment there are no major manufacturers of solar air heaters. Only a few small Polish companies
manufacture and install air solar collectors that are used for additional heating of rooms and for crop drying.
Geothermal Heat
At present, Poland has 3 major geothermal DHP. Installations for the extraction of geothermal waters are usually
made by companies working for the mining industry. Many of the bore-holes that are used today were made during
geological surveys searching for oil, gas and other mining ordered by the Ministry of Environmental Protection,
Natural Resources and Forestry.
Currently, there are several companies specializing in identifying geothermal resources, design, construction,
operation and maintenance of geothermal plants. There are also suppliers of heat exchangers resistant to high salinity
hot waters as well as manufacturers of other equipment.
2.4.4
Electricity Production Equipment
Biomass and Biogas

At the moment, there are only two major manufacturers of spark ignition engines, which are designed to generate
electricity from biogas at waste water treatment plants and from landfill gas. Due to simple design and relatively low
price, most of the installations for electricity generation from biogas/ landfill gas in Poland are equipped with such
engines. However there are no manufacturers of complete small-scale CHP units designed for such fuels as biomass
or biogas.
12
PV Conversion
Attempts supported by the Committee for Scientific Research, scientific societies and electronic industry are being
made to commence industrial production of photovoltaic cells in Poland. Regretfully, Poland lagged in the
development of photovoltaics, which took place mainly in the United States, in Japan and in European Union
countries in the 1990s. Generally most of PV modules today are imported from Germany, Italy and the U.S.
Wind Power
There are now two Polish manufacturers of modern grid-connected wind turbines: NOWOMAG and KOMAG. One
of them manufactures 160 kW units, and other small 30 kW units. Both manufacturers are located in southern Poland
close to the Tatra mountains.
Apart from these, there are several dozen other companies which manufacture wind turbine components such as wind
turbine towers, nacelles, gear boxes, generators and the like. The companies collaborate both with Polish
manufacturers and suppliers for EU wind turbines.
Small Hydro
Poland is relatively low-lying country and as a result, turbines used most often have small heads: Kaplan, Francis,
Banki-Michell and derivatives. At present, in Poland there are at least 10 domestic manufacturers of small hydro
turbines and equipment for small hydro plants, as well as several representatives of larger EU companies, mainly
from Scandinavia and France.
Apart from these, there is also over 15-20 local firms providing specialized advise and expertise related to the
localization, design, supervision and construction small hydro plants.
2.5
ACCESSIBILITY: U.S. PRESENCE
U.S. equipment producers are not present in the Polish market. Some firms like wind turbine producers: Bergey
Windpower Co., Inc. and Southwest Windpower Co., Inc. are represented by Polish companies with dealership
agreements. GE Wind has been present on the Polish market since 1995. Some U.S. firms have shown strong interest
in investment such as Invenergy LLC, which invested in the 50MW wind park.
U.S. market share in the Polish renewable energy sources market could be considerably higher, since the U.S. is the
strongest and the largest producer of equipment used in alternative energy production. Higher U.S. market share in
Poland could be achieved by establishing cooperation with Polish firms present in this market or in establishing
representative offices or branches in Poland.
2.6
LATENT DEMAND: TARGET BUYERS
End-users for environmental consulting services represent a very wide spectrum of different buyers like:
Municipalities, Gminas, and Powiats (local authorities).
State-owned companies.
Private local companies.
Foreign companies investing in Poland.
13
Renewable energy sources end users are gaining in importance since the Polish power industry faces very difficult
problems with structural changes. Poland needs to increase its consumption of hydrocarbon fuels and renewable
energy sources and reduce the consumption of coals. However electric energy production increases need to be
balanced with a reduction in pollution volume. Moreover, many heat-generating power stations are outdated,
inefficient, and should be modernized in the short-term. Also, the cost of production of Polish electric energy may
overstep the European level as a result of the modernization needs. The production of electric energy based on brown
coal is significantly cheaper, (less than from other sources), but it seriously affects the environment.
The government has set air protection as its environmental priority. Poland is a signatory to Kyoto Protocol, what
obligates the Polish government to a considerable reduction of its level of CO2 emission. The application of
alternative sources of energy was pinpointed as one of Polands most important projects to achieve the EU standards,
among modernization of technological processes, modernization of industrial boilers, changing fuels to gas and oil
and wider use of coal gasification processes, installation of dust and gaseous emissions reduction mechanisms
(especially for sulfur dioxide, dust particles, nitrogen monoxides, carbon dioxides), and construction of central
(district) heating systems in urban areas.
Although the Polish market is extremely price sensitive, clients are willing to pay a substantial premium for the
quality and suitability of services offered.
Four factors that would have a bearing on the decision making process are:
Price: Price is an important decision making factor in Poland. The common apprehension about any imported
product or service is that it is very expensive. This issue must be managed carefully through a strategy that offers
a package of services, rather than an individual service and that stresses the non-engineering aspects of the
project such as capital maintenance cost or efficiency ratio.
Quality: Products or services that are perceived as qualitatively better are well received and at times easily
acceptable at a premium over existing competition, however the decision makers need to be aware of the
benefits of the foreign technology offered in a particular bid.
Applicability: It is critical that the service or product offered be molded to suit Polish conditions and the
technical ability of the workers at the shop-floor level.
Continued Support: Important factors for Polish companies and officials include post-sale maintenance,
equipment service and spare parts accessibility. U.S. companies should convince their Polish partners and
possible investors that they are ready to provide this.
2.7
ACCESSIBILITY: FINANCING STRATEGIES
Financing for RES investments will come from state and local government budgets, various environmental funds ,
EU structural funds and individual investors and entrepreneurs. When Poland joined the European Community, it
gained access to the following assistance funds for the years 2004-2006: 2 billion EUR from Cohesion Funds, 8.3
billion EUR from Structural funds, (European Regional Development Fund); and about 700 million EUR annually
from funds for development of rural areas. These funds are still available. Starting from January 2007 Poland gained
access to 67 billion Euro from EU structural funds. The Polish government prepared the National Development Plan,
NDP, that describes priorities for project financing till 2013. Among these projects are also projects that will benefit
from operational programs included in the NDP.
14
Projects and Operational Programs

(Euro Millions)
Operational Program
Infrastructure and
Environment
Projects Types (Above 5 Million Euro)

Biomass electricity up to 10 Mwe, biomass and
geothermal CHP, green heat production, biofuels
production, RES equipment production facilities.
Innovative Economy
Research and Technical Development RTD,

development and implementation of know-how,
investment in modern research and innovation,
investment support for industrial and private
R&D centers.
Available Funds
(EU/National/Private)
334.2/59/219
2,838/425/0
Source: Institute for Renewable Energy, Warsaw

Projects financed with EU Structural and Cohesion Funds do not require equipment to be of EU origin (i.e.,
equipment of U.S. origin are allowed), nor do they apply to the rule of nationality for suppliers of products and
services. U.S.-based companies are eligible to participate as partners in projects funded by EU funds. The EU does
not set minimum percentages for consortium or partnership participation. The only requirement is that fund
beneficiaries establish an account in a bank situated in a EU member state. The notion of partnership is central in
particular for Structural Fund projects. U.S.-based companies are strongly advised to find a suitable European partner
that will act as a key player with local regional authorities. Including development agencies or academic
organizations in the consortium will increase the chances of forming a winning team. U.S. subsidiaries located in the
EU and legally registered are considered to be European firms and are eligible as such.
2.7.1
Local Financial Sources
In the case of financing options for renewable energy projects, a number of local financial sources are available from
various financial institutions. These include:
National Fund
Polands National Fund for Environmental Protection and Water Management, worth around 100 million EURO per
year. The Fund mainly supports projects recommended by regional authorities (Voivods). The most common form of
support consists of soft loans at interest rates ranging from 0.3 to 0.8 of the refinancing rate, depending on the size of
anticipated environmental benefits arising from the project.
Voivodship Fund
Voivodship Funds for Environmental Protection and Water Management operate on the regional level. Conditions
for obtaining financial support from the 16 voivodship funds differ from region to region since each fund defines its
own priorities for regional environmental problems. Usually, these funds provide soft loans of up to 50% of the
investment cost with no particular preferences given to public investors.
Bank of Environmental Protection Fund

This organization offers suitable preferential credits for investments in waste processing projects.
15
The World Bank

The World Bank also offers project funding.
2.7.2
Grants
Local environmental funds on the levels of county (powiat) and community (gmina) levels typically provide
some grants, although priorities for funding differ depending on local development strategies. They mainly support
environmental activities of local authorities.
Money for the funds comes mainly from the collection of fees for the economic use of the environment and from
fines for non-compliance with environmental standards. In general, the distribution of money among these funds is as
follows: National Fund (20%), regional funds (50%), county funds (10%) and community funds (20%).
The EcoFund is an organization of the Ministry of Finance and its financial resources are based upon bilateral
agreements with countries including the U.S., France, Italy, Switzerland and Norway. Under these agreements,
termed debt for environmental swaps, foreign donor countries forgive debt on the condition that the funds are used
instead to support activities for improving the environment within Poland. The EcoFund provides grants for
renewable energy projects, typically between 10% and 30% of the investment costs.
The recommended payment method for imported goods and services is an irrevocable Letter of Credit (L/C). Polish
banks require the importer to deposit funds prior to issuance of an L/C and they are opened for the period covering
production, shipment and installation of the goods, or as otherwise set forth in contracts. Payments should be directed
through a banks whose guaranties are reliable.
There are several international lines of credit available:
The International Finance Corporation (IFC): The Export Development Bank in Warsaw services credits for
small to medium sized companies. For bigger projects the IFC forms consortia with other financial institutions.
The Export-Import Bank of the United States (Eximbank): Supports the export of U.S. goods and services
through a variety of loans, guarantees and insurance programs.
For additional information, please contact:

Mr. Craig OConnor
Environmental Liaison Officer
Export-Import Bank of the United States
811 Vermont Ave. NW
Washington D.C. 20571
Tel: (202) 565-3939
Fax: (202) 565-3932
2.8
2.8.1
MARKET ISSUES AND OBSTACLES

Customs
As a member of the EU, tariffs on U.S. produced equipment imported into Poland reflect EU levels. In order to check
the tariff and VAT level for particular products, we recommend that importers visit the Polish Ministry of Finance
Web site, which has a tariff browser. The Tariff Browser (module of Integrated Tariff System ISZTAR) provides
16
information on goods in international trade to customs administrators and importers. The Tariff Browser also
presents data from the TARIC system (goods nomenclature, duty rates, restrictions, tariff quotas, tariff ceilings,
suspensions) and national data (VAT, excise tax, restrictions and non-tariff measures). All information on the TARIC
system is presented in four languages: English, French, German and Polish.
Please see: isztar.mf.gov.pl:7080/taryfa_celna/web/main_PL.
Renewable energy equipment from EU, EFTA countries and the U.S. enjoys 0% duty rates.
2.8.2
Excise Tax
There is no excise tax for imported waste processing equipment.
2.8.3
VAT
A 22% VAT is calculated on the CIF price and is increased by customs duty and excise tax (if applicable).
2.8.4
Safety Certificates
As of May 1, 2004, when Poland joined the EU, the EU product certification system was introduced. All electrical
products are required to comply with EU directives 73/23, 89/336 and 98/37. The CE marking issued by the EU
confirms product conformity with the requirements of EU directives. When certified for the EU, a product does not
need separate certification in Poland, but must be registered with the Polish certification authority before being
introduced in Poland. The certification requires a manufacturers statement of product safety.
If a product is newly introduced to the EU and its first destination is Poland, certification must first be conducted by
the Polskie Centrum Badan i Certyfikacji (the Polish Center for Research and Certification or PCBC).
Polish Center for Research and Certification
Polskie Centrum Badan i Certyfikacji
ul. Klobucka 23a, 02-699 Warszawa
Tel: (48)(22) 857-99-16
Fax: (48)(22) 847-12-22
Web site: www.pcbc.gov.pl/ang/index1.htm
According to the Public Procurement Law, all contracts within the municipal sector must be awarded in a fair and
competitive manner. Typically, contracts are awarded to the lowest bidder (in the case of standard goods) or to the
lowest evaluated bidder (in the case of equipment, services, custom-designed goods, etc.). Ideally, the best way to
enter the market is to establish direct contact with the end-user. Participation in major fairs, seminars and tradeshows is strongly recommended.
The procurement of goods and services financed with foreign assistance follow the specific requirements dictated by
the respective IFI, International Financing Institution, (i.e. the World Bank, European bank for Reconstruction and
Development, PHARE program) or relevant donor government. The restrictions of IFIs or donor governments limit
the eligibility of products and producers.
2.9
2.9.1
17
KEY CONTACTS
Trade Event
International Environmental Fair POLEKO

November 20-23, 2007
International Poznan Fair
ul. Glogowska 14, 60-734 Poznan
Tel: (+48-61) 869-2554
Fax: (+48-61) 866-5827
Contact: Ms. Agata Dutka, Project Manager
E-mail: poleko@mtp.pl
Web site: poleko.mtp.pl/
2.9.2
Industry Associations
Ministry of Environment
Ministerstwo Srodowiska
00-922 Warszawa, ul. Wawelska 52/54
Tel: (+48-22)579-2404 ext. 404
Fax: (+48-22)579-2280
Contact: Ms. Agnieszka Bolesta, Undersecretary of State
Web site: www.mos.gov.pl
Main Inspectorate for Environmental Protection
Glowny Inspektorat Ochrony Srodowiska
ul. Wawelska 52/54, 00-922 Warszawa
Tel/Fax: (+48-22) 579-2900
Contact: Mr. Krzysztof Zaremba, Chief Inspector
E-mail: gios@gios.gov.pl
Web site: www.gios.gov.pl
EC BREC European Center for Renewable Energy
ul.Jagielloska 55 bud. 6, 03-301 Warszawa
Tel: (+48 22) 5100-200
Fax: (+48 22) 5100-245
Contact: Ms. Magdalena Rogulska, President
E-mail: warszawa@ecbrec.pl
Web site: www.ecbrec.pl/
Institute for Renewable Energy
ul. Mokotowska 4/6, 00-641 Warszawa
Tel: (+48 22) 825 46 52
Fax: (+48 22) 875 86 78
Contact: Mr. Grzegorz Wisniewski, President
E-mail: biuro@ieo.pl
Web site: www.ieo.pl/
18
Polish Chamber of Commerce for Renewable Energy

Polska Izba Gospodarcza Energii Odnawialnej
ul. Gotarda 9, 02-683 Warszawa
Tel: (+48 22) 548-4999
Fax: (+48 22) 548-4998
Contact: Mr. Piotr Wisniewski, President
E-mail: pigeo@pigeo.org.pl
Web site: www.pigeo.org.pl/
Polish Biomass Chamber
Polska Izba Biomasy
ul. Smocza 27, 01-048 Warszawa
Tel: (+48 22) 498-6009
Contact: Mr. Ryszard Gajewski, President
E-mail: biuro@biomasa.org.pl
Web site: www.biomasa.org.pl
Polish Wind Energy Association
Polskie Stwoarzyszenie Energetyki Wiatrowej
Al. Wojska Polskiego 154, 71-324 Szczecin
Tel: (+48 91) 487-7535
Fax: (+48 91) 487-5014
Contact: Ms. Anna Paslwaska, Director
E-mail: biuro@psew.pl
Web site: www.psew.org.pl/
Polish Geothermal Association
Polska Geotermalna Asocjacja
ul. J. Wybickiego 7, 30-261 Krakow
Tel/Fax: (+48 12) 617-3413
Contact: Professor Stanislaw Ostaficzuk, Chairman
E-mail: ostaficz@us.edu.pl
Web site: www.pga.org.pl
Polish Solar Energy Association
Polskie Towarzystwo Energetyki Slonecznej
ul. Swietokrzyska 21, 00-049 Warszawa
Tel/Fax: (+48 22) 660-5227
Contact: Ms. Dorota Chwieduk, Chairman
E-mail: dchwied@ippt.gov.pl
Web site: ptes-ises.ippt.gov.pl/
Polish Photovoltaics Center
Centrum Fotowoltaiki
Politechnika Warszawska
Wydzial Elektroniki i Technik Informacyjnych
ul. Koszykowa 75, 00-662 Warszawa
Tel: (+48-22) 234-7782, 234-7530, 234-5759
Fax: (+48-22)234-7782
Contact: Mr. Stanislaw Pietruszko, Chairman
E-mail: informacja@pv.pl, pietruszko@imio.pw.edu.pl
Web site: www.pv.pl
19
Association for Small Hydro Power Plants Development

Towarzystwo Rozwoju Malych Elektrowni Wiatrowych
ul. Krolowej Jadwigi 1, 86-300 Grudziadz
Tel: (+48 56) 464-9644
Fax: (+48 56) 464-9643
Contact: Mr. Kuba Puchowski, President
E-mail: biuro@trmew.pl
Web site: www.trmew.pl
2.9.3
Financial Institutions
National Fund for Environmental Protection and Water Management

Narodowy Fundusz Ochrony Srodowiska i Gospodarki Wodnej
ul. Konstruktorska 3a, 02-673 Warszawa
Tel: (48-22) 849-00-80, 849-38-46
Fax: (48-22) 849-20-98
Contact: Mr. Kazimierz Kujda, President
Web site: www.nfosigw.gov.pl
Ecofund
Polish Dept for Environment Swap
ul. Bracka 4, 00-502 Warszawa
Tel: (48-22) 628-5085
Fax: (48-22) 628-5081
Contact: Mr. Janusz Ostapiuk, Vice President
Web site: www.ekofundusz.org.pl
Bank for Environmental Protection S.A.
Bank Ochrony rodowiska BOS S.A.
Al. Jana Pawla II 12, 00-950 Warszawa
Tel: (48-22) 850-8805
Fax: (48-22) 850-8895
Contact: Mr. Piotr Wiesiolek, Deputy President
Web site: www.bosbank.pl/
Polish Agency for Information and Foreign Investment (PAIIZ)
Al. Roz 2, 00-559 Warszawa
Tel: (48)(22) 621-62-61
Fax: (48)(22) 621-84-27
Contact: Mr. Andrzej Kanthak, President
Web site: www.paiiz.gov.pl
20
3.1
FINANCIAL INDICATORS: STEAM, GAS AND

HYDRAULIC TURBINES AND TURBINE
GENERATOR SET UNITS
OVERVIEW
Is Poland competitive? With the globalization of markets, the increased mobility of corporate assets, and the need
for productive human resources, this question has become all the more complex to answer. The financial indicators
section was prepared to tackle this question by focusing on certain fundamentals: financial performance and labor
productivity. Rather than focus on the economy as a whole, the analysis presented here considers only one sector:
steam, gas and hydraulic turbines and turbine generator set units.
We are essentially interested in the degree to which firms operating in Poland have fundamentally different financial
structures and performance compared to firms located elsewhere. With respect to this view of competitiveness, if
one were to invest or operate in Poland, how would the firms asset structure likely vary compared to a firm
operating in some other country in Europe or average location in the world? In Poland, do firms typically hold more
cash and other short term assets, or do they concentrate their assets in physical plant and equipment? On the liability
side, do firms operating in Poland have a higher percent of payables compared to other firms operating in Europe, or
do they hold a higher concentration of long term debt? The structure of the income statement is also telling. Do
firms operating in Poland have relatively higher costs of goods sold, operating costs, or income taxes compared to
firms located elsewhere in the region or the world in general? Are returns on equity higher in Poland? Are profit
margins greater? Are inventories held longer? The financial indicators section was designed to answer these and
similar questions that naturally affect ones decision to invest or operate in Poland. Again, we are particularly
interested in steam, gas and hydraulic turbines and turbine generator set units, and not the economy as a whole.
In many instances, people make all the difference. In addition to financial competitiveness, we consider the extent to
which labor deployment and productivity in Poland differs from regional and global benchmarks. In this case, we
are interested in the amount of labor required to operate a typical business in Poland and the likely returns on this
human investment. What is the typical ratio of short-term and long-term assets to employee (employed in steam, gas
and hydraulic turbines and turbine generator set units operations)? What are typical capital-labor ratios? How
different are these ratios to those in Europe in general and the world as a whole? What are the average sales and net
profits per employee in Poland compared to regional benchmarks?
The goal of this section is to assist managers in gauging the competitive performance of Poland at the global level for
steam, gas and hydraulic turbines and turbine generator set units. With the globalization of markets, greater foreign
competition, and the reduction of entry barriers, it becomes all the more important to benchmark Poland against other
countries on a worldwide basis. Doing so, however, is not an obvious task.
This report generates international benchmarks and measures gaps that might be revealed from such an exercise.
First, data is collected from companies across all regions of the world. For each of these firms, data are standardized
into comparable categories (assets, liabilities, income and ratios), by country, region and on a worldwide basis. From
there, we eliminate all currency effects by standardizing within each category. Global benchmarks are then
compared to those estimated for steam, gas and hydraulic turbines and turbine generator set units in Poland.
Though we heavily rely on historical performance, the figures reported are not historical but are forecasts and
projections for the coming fiscal year.
Financial Indicators
3.1.1
21
Financial Returns and Gaps in Poland
The approach used in this report to evaluate operating performance for steam, gas and hydraulic turbines and turbine
generator set units in Poland is called "vertical analysis." For those unfamiliar with this type of analysis, frequently
taught in graduate schools of business, the reader is recommended Jae K. Shim and Joel G. Siegels recent book
titled Financial Management.1 In their discussion of financial statement analysis and ratios, Skim and Siegel (p. 4243), describe common-size statement (vertical analysis) as follows:
A common-size statement is one that shows each item in percentage terms. Preparation of common-size
statements is known as vertical analysis, in which a material financial statement item is used as a base value and
all other accounts on the financial statement are compared to it. In the balance sheet, for example, total assets
equal 100 percent, and each individual asset is stated as a percentage of total assets. Similarly, total liabilities and
stockholders equity are assigned a value of 100 percent and each liability or equity account is then stated as a
percentage of total liabilities and stockholders equity, respectively. For the income statement, a value of 100
percent is assigned to net sales, and all other revenues and expense accounts are related to it. It is possible to see
at a glance how each dollar of sales is distributed among various costs, expenses, and profits.
The authors suggest that vertical analyses involve industry-based comparisons. Such a comparison allows you to
answer the question, How does a business fare in the industry? You must compare the companys ratios to
industry norms. (p. 43-44) This approach is extended to country competitiveness (in this case Poland) for a
particular sector (in this case steam, gas and hydraulic turbines and turbine generator set units). This involves
calculating country, regional and global norms. This introduction will describe the seven-stage methodology used to
perform this analysis. Each stage should be seen as a working assumption behind the numbers presented in later
chapters.
Stage 1. Industry Classification. This stage begins by classifying the company into an industry. For this, we have
relied on a combination of the North American Industry Classification System (NAICS pronounced Nakes), a
relatively new system for classifying business establishments, and the older Standard Industrial Classification (SIC)
system. Adopted in 1997, NAICS codes are the new industry classification codes used by statistical agencies of the
United States. NAICS was developed jointly by the U.S., Canada, and Mexico to provide comparability in statistics
about business activity across North America. After 60 years of service, the outdated SIC system was retired on
October 1, 2000, leaving only the NAICS codes for official use. The NAICS classification system adds some 350
new industries and represents a revision to over 60% of the previous SIC industries. Despite its official retirement,
the SIC system is still commonly used (and often reported in firms financial statements).
For most companies in the world, classification within either the new NAICS or older SIC systems is a rather straight
forward exercise. For some, however, it can be problematic. This is true for several reasons. The first being that the
SIC or NAICS classification systems are rather broad for many product and industry categories (a firms products or
services may be only a minor aspect of the classifications definition). The second is that some firms activities span
multiple codes. Finally, it is possible that a firm is classified by one source using its SIC code, and by another using
its NAICS code, and by a third using both. Furthermore, some sources do not report either code, but instead use
qualitative statements of the firms activities. Nevertheless, if one wishes to pursue a vertical analysis, some
classification needs to take place which selects a peer group. In making this classification, one can rely on a number
of sources. In some countries, firms must self classify in official periodic reports (e.g. annular reports, 10Ks, etc.)
to public authorities (such as the Securities and Exchange Commission). These reports are then open for public
scrutiny (e.g. EDGAR filings). In other cases, commercial data vendors or private research firms provide
SIC/NAICS codes for specific companies. These include:
Bloomberg - www.bloomberg.com
Skim and Siegel (2000), Financial Management published by Barrons Educational Series, Inc. (BARONS
BUSINESS LIBRARY Series), ISBN: 0-7641-1402-6.
22
Datastream (Thomson Financial) - www.datastream.com
Dun & Bradstreet - www.dnb.com
Hoovers - www.hoovers.com
HarrisInfoSource - www.HarrisInfo.com
InfoUSA - www.infousa.com
Investext (Thomson Financial) - www.investext.com
Kompass International Neuenschwander SA. - www.kompass.com
Moody's Investors Service - www.moodys.com
Primark (Thomson Financial) - www.primark.com
Profound (The Dialog Corporation A Thomson Company) - www.profound.com
Reuters - www.reuters.com
Standard & Poor's - www.standardandpoors.com
It is interesting to note that commercial vendors often report different qualitative descriptions and industrial
classifications from one to another. These descriptions and classifications may also be different from those reported
by the firm itself. Anyone hoping to perform a benchmarking study, therefore, has to make a judgment call across
these various sources in order to determine a reasonable classification. In this report, we have decided a metaanalytic process, by combining various sources (including linking a classifications keywords to qualitative
descriptions of the firms product line). In cases of inconsistency, the most recent or globally comparable available
is chosen. Again, the overall goal is to classify firms, which either produce similar products, offer similar services,
or are in the same stage of the value chain for a particular industrial classification. In the case of this report, the SIC
code selected is: 3511 which is defined as steam, gas and hydraulic turbines and turbine generator set units. This
classification should be seen as a working assumption. In order to obtain a more detailed discussion of this
classification, the reader is referred to the Web sites developed by the U.S. Census Bureau:
http://www.census.gov/epcd/www/naics.html. Basic definitions and descriptions are provided at:
http://www.census.gov/epcd/www/drnaics.htm#q1. A full correspondence table between SIC and NAICS codes,
and detailed definitions are given at http://www.census.gov/epcd/www/naicstab.htm.
Stage 2. Firm-Level Data Collection. A global search was conducted across over 20,000 companies in over 40
major economies, including Poland, for those that report financials (balance sheet and income statements) and that
are involved in steam, gas and hydraulic turbines and turbine generator set units. It should be noted that the publicdomain financials can be either historic or projections. It should also be noted that even historic figures can be
modified in the future and often represent estimates of performance.
Stage 3. Standardization. Once collected, public domain financial figures of firms identified in Stage 2 are
standardize into comparable categories (assets, liabilities, and income). Again, these are limited to firms involved in
some aspect of steam, gas and hydraulic turbines and turbine generator set units (i.e. are members of the value chain).
From there, we eliminate all currency effects by standardizing within each category (creating ratios). In order to
maintain comparability over time and across countries, vertical analysis is used. In the case of a firms assets, we
treat the total assets as equaling 100, irrespective of the value of the local currency. All other assets are then
calculated as a percent of total assets. In this way, the structure of the firms assets can be easily interpreted and
compared with international benchmarks. For liabilities, total liabilities and equity are indexed to equal to 100. For
the income statement, total revenue is indexed to equal 100, and all other figures are calculated as a percent of these
figures.
Stage 4. Filtering. Not all the firms selected in Stage 2 or the ratios calculated in Stage 3 are used for the country,
regional or global benchmarks, as a number of companies are purposely dropped from the analysis. This is justified
by the outlier phenomenon that plagues such analysis. The problem lies in that any given company in the
benchmarking pool may be facing some exceptional event or may be organized in an exceptional way so as to make
23
its ratios vastly different from the norm. By including such firms, the global benchmarks can be overly skewed. In
many countries, firms are organized into holding groups. These groups nominally have very few employees (e.g. 4
to 25 employees), but have extremely large assets, liabilities, or revenues. As such, the inclusion or exclusion of
firms having this form of management can affect the ratios and benchmarks reported. Likewise, some firms have no
net sales, no assets, no liabilities, or ratios. Others have ratios that appear implausible for a normal or viable
company. In order to not allow these firms to affect the global benchmarks, only those firms with reasonable
financials have been chosen. Finally, in some countries, detailed financials are not available or are not comparable to
either the company in question or the global norm (e.g. various forms of depreciation). In this case, only those which
exist and are comparable are reported. The details, therefore, that comprise a given ratio or set of ratios may not be
reported. This may lead to the addition of several ratios, not summing to the whole.
Stage 5. Calculation of Global Norms. Once the filtering process has eliminated outliers, a final list of companies
included is compiled. Based on this list, the ratios discussed in Stage 3 are calculated for every firm, and then
averaged to create country, regional and global benchmarks. The world average is calculated using each countrys
population as a weight.
Stage 6. Projection of Deviations. The goal of this report is not only to estimate raw ratios or averages, but also to
present the difference between Poland and projected global averages for that same ratio. Furthermore, it can be
insightful to know the location of each ratio within the distribution of the countries represented in Stage 5. These
deviations, in fact, can be seen as projections or likely scenarios for the future. This is often true for two reasons.
First, while a companys financials change from year to year, its ratios are often stable. This is especially true for the
country, regional and global benchmarks which represent averages across companies. From a purely Bayesian sense,
the difference between the companys recent ratios and the benchmarks are a reasonable prior for future deviations.
This is true, even if the entire industry is hit by an external or exogenous shock, such as an oil crisis or economic
slowdown. In other words, we assume that the structure of the variance in the industrys financials remains stable.
Second, many of the data are based on preliminary reports that might be changed in future filings. As forecasts,
therefore, the numbers derived from these are also forecasts of past and future performance (with associated
uncertainties). The calculation of the difference between a countrys ratios and the global benchmarks is meant to
yield roughly approximate forecasts, or "useful measures". Within Europe, the reliability of estimates varies from
one country to another for those ratios given in tables that report national averages. This is true because reliable
source statistics are not available for all countries in Europe. Countries with the highest reliability, or sample sizes
after filtering in Stage 4, include Denmark, France, Germany, and Netherlands. Others are generally econometrically
extrapolated using models that use country characteristics (e.g. income per capita) as independent variables (i.e.
countries having similar economic structures are assumed to have similar operating ratios). Again, the forecasts are
based on the assumption of relative stability. This assumption has proven extremely robust in previous applications
of this methodology (i.e. todays weather is a good predictor of tomorrows weather, but not the weather three years
from now). The results reported should be viewed as those for a proto-typical firm operating in Poland whose
primary activity is steam, gas and hydraulic turbines and turbine generator set units.
Stage 7. Projection of Ranks and Percentiles. Based on the calculation of deviations, relative ranks and percentiles
are calculated across the firms used in the benchmarks. The percentile estimates the percent of a representative
sample of countries in the world having values of the ratio lower than Poland. It is important to note that a percentile
being high (or low) does not mean good (or bad) past, present or future financial performance. The reader must draw
this conclusion on their own. The estimates provided were created to provide managerial insight, and not a
recommendation with respect to particular investments within any country.
We graphically report, for each part of the financial statement, the larger structural differences between Poland and
the regional and global benchmarks, and provide a summary table of ranks and percentiles. These are estimates for
firm which would be involved in steam, gas and hydraulic turbines and turbine generator set units. A deviation from
the global norm need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention
or perhaps signal a country's relative strength or weakness for the coming fiscal year.
3.1.2
24
Labor Productivity Gaps in Poland
In the case of labor productivity measures, this report maintains comparability over time and across countries by
using a common currency (the US dollar) and relates each measure to a per employee basis. Ratios are projected
using raw financial statistics and, as ratios, are therefore comparable. Given a countrys human resource ratios, the
resulting figures are benchmarked across regional and global averages. The seven stage approach given above is
used in a similar manner.
We then report, for each part of the financial statement, the larger labor productivity gaps that Poland has vis--vis
the worldwide average (for steam, gas and hydraulic turbines and turbine generator set units). Again, a gap need not
be a bad sign. Rather, it is simply a substantial difference that might merit further attention or signal a firms relative
incentive to invest locally. All figures are projections, so due caution is required.
3.1.3
Limitations and Extensions
Shim and Siegal (p. 60) stress that while ratio analysis is an effective tool for assessing a companys financial
condition, operating Poland or any other country, its limitations must be recognized. They find that (p. 59) no
single ratio or group of ratios is adequate for assessing all aspects of a companys financial condition operating in a
particular country. The authors note the following limitations associated with ratio analyses which apply to the
global benchmarking and vertical analysis presented here (p.60):
Accounting standards or policies may limit useful comparisons across companies
Management accounting practices across companies and countries may not be performed in the same style
Ratios are static and do not reveal future trends
Ratios do not indicate the quality of the components used to calculate the ratios (i.e. ratios have ambiguous
interpretations)
Reported ratios may not reflect real values
Companies may be highly diversified, limiting the comparability of their ratios to others
Industry averages or norms are approximate; finer industry definitions may be required for certain
interpretations or comparisons
Financial statements and resulting ratios often mean different things to different people depending on their
points of view or motivations.
Again, all figures reported here are estimates, so due caution is required. The above caveats, and the fact that
statements made in this report are forward-looking, requires that this point be emphasized. A number of intervening
factors can have material effect on the ratios and variances forecasted. These include changes in a company's
management style, exchange rate volatility, changes in accounting standards, the lack of oversight or comparability
in accounting standards, changes in economic conditions, changes in competition, changes in the global economy,
changes in source data quality, and similar factors.
3.2
3.2.1
25
FINANCIAL RETURNS IN POLAND: ASSET STRUCTURE RATIOS

Overview
In this chapter we consider the asset structure of companies involved in steam, gas and hydraulic turbines and turbine
generator set units operating in Poland benchmarked against global averages. The chapter begins by defining relevant
terms. A common-size statement, or vertical analysis of assets is then presented for companies operating in Poland
and the average global benchmarks (total assets = 100 percent). For ratios where there are large deviations between
Poland and the benchmarks, graphics are provided (sometimes referred to as a financial gap analysis). Then the
distribution of ratios is presented in the form of ranks and percentiles. Certain key vertical analysis asset ratios are
highlighted across countries in the comparison group.
3.2.2
Assets Definitions of Terms
The following definitions are provided for those less familiar with the asset-side of financial statement analysis. As
this chapter deals with the vertical analysis and global benchmarking of assets, only definitions covering certain
terms used in this chapters tables and graphs are provided here. The glossary below reflects commonly accepted
definitions across various countries and official sources.
Cash. Cash is typically defined as money on hand, on deposit with chartered bank, or held in the form of
eligible securities.
Current Assets. Current assets are generally defined to be resources which are available, or can readily be
made available, to meet the cost of operations or to pay current liabilities.
Intangible Other Assets. Intangible assets are generally understood to be nonphysical assets such as legal
rights (patents and trademarks) recorded at their historical cost then reduced by systematic amortization.
Property Plant and Equipment - Net. Net PP&E equals the original cost of property, plant, and
equipment (PP&E), less accumulated depreciation, depletion and amortization (DD&A).
Receivables (Net). Net receivables are defined as the net amount due to the company from private persons,
businesses, agencies, funds, or governmental units which is expected to be collected in the form of moneys,
goods, and/or services.
Short Term Investments. Short-term investments are investments which can be typically liquidated in less
than one year.
Total Assets. Total assets are defined as the financial representation of economic resources, the beneficial
interest in which is legally or equitably secured to a particular organization as a result of a past transaction
or event.
Total Inventories. Total inventories are defined as the total amount of goods on hand.
3.2.3
26
Asset Structure: Outlook
Using the methodology described in the introduction, the following table summarizes asset structure benchmarks for
firms involved in steam, gas and hydraulic turbines and turbine generator set units in Poland. To allow comparable
benchmarking, a common index of Total Assets = 100 is used. All figures are current-year projections for companies
operating in Poland based on latest financial results available.
Asset Structure
Poland
Europe World Avg.
_________________________________________________________________________________________________________
Cash & Short Term Investments

Receivables (Net)
Total Inventories
Current Assets - Total
Property Plant and Equipment - Net
Other Assets
Intangible Other Assets
Total Assets
3.68
15.60
12.49
31.77
49.74
0.27
0.27
100.00
9.00
28.55
17.79
56.47
24.97
5.54
4.31
100.00
11.41
27.15
16.97
57.46
25.30
4.21
2.24
100.00
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
3.2.4
27
Large Variances: Assets
The following graphics summarize for steam, gas and hydraulic turbines and turbine generator set units the large
asset structure gaps between firms operating in Poland and the world average. A gap cannot necessarily be
interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market
focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here
are simply those that are large.
Gap: Cash & Short Term Investments

15
9
10
5
11.41
3.68
0
-5
-7.73
-10
Poland
Europe
World Average
Gap
Gap: Receivables (Net)

28.55
30
20
27.15
15.6
10
0
-10
-11.55
-20
Poland
Europe
World Average
Gap
Gap: Total Inventories

17.79
20
15
16.97
12.49
10
5
0
-5
Poland
Europe
World Average
-4.48
Gap
28
Gap: Current Assets - Total

56.47
60
40
57.46
31.77
20
0
-20
-25.69
-40
Poland
Europe
World Average
Gap
Gap: Property Plant and Equipment - Net

50
49.74
40
24.97
30
25.3
24.44
20
10
0
Poland
Europe
World Average
Gap
Gap: Other Assets

5.54
4.21
4
2
0.27
0
-2
-4
Poland
Europe
World Average
-3.94
Gap
Gap: Intangible Other Assets

6
4.31
4
2
2.24
0.27
0
-2
Poland
Europe
World Average
-1.97
Gap
29
Gap: Total Assets

100
100
100
100
80
60
40
20
0
Poland
Europe
World Average
Gap
3.2.5
30
Key Percentiles and Rankings
We now consider the distribution of asset ratios for steam, gas and hydraulic turbines and turbine generator set units
using ranks and percentiles. What percent of countries have a value lower or higher than Poland (what is the ratio's
rank or percentile)? The table below answers this question with respect to the vertical analysis of asset structure. The
ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries
considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated
in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the summary
table below, a few key vertical asset ratios are highlighted in additional tables.
Asset Structure
Poland
Rank of Total
Percentile

Receivables (Net)
Total Inventories
Other Assets
Total Assets
3.68
15.60
12.49
31.77
49.74
0.27
0.27
100.00
45 of 53
51 of 53
45 of 53
53 of 53
2 of 53
51 of 53
40 of 43
15.09
3.77
15.09
0.00
96.23
3.77
6.98
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
31

Countries
Value (total assets = 100)
Rank
Percentile
22.46
22.29
22.10
20.17
19.72
19.10
18.47
17.20
16.72
16.48
16.28
15.53
15.50
14.82
14.36
14.17
12.80
12.66
12.64
12.39
11.85
11.41
11.40
11.25
10.76
10.72
10.48
9.83
9.66
9.45
9.31
8.53
6.36
6.27
5.03
4.50
4.42
3.68
3.02
2.94
0.74
0.70
0.50
0.50
0.40
1
2
3
4
5
6
8
9
10
11
12
14
15
16
17
19
20
21
22
23
24
25
26
27
28
29
31
32
33
34
35
37
38
39
41
43
44
45
46
47
48
49
50
51
53
98.11
96.23
94.34
92.45
90.57
88.68
84.91
83.02
81.13
79.25
77.36
73.58
71.70
69.81
67.92
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
41.51
39.62
37.74
35.85
33.96
30.19
28.30
26.42
22.64
18.87
16.98
15.09
13.21
11.32
9.43
7.55
5.66
3.77
0.00
Region
_________________________________________________________________________________________________________
Hong Kong
Israel
Ireland
South Africa
Indonesia
Australia
China
South Korea
Norway
Singapore
Japan
USA
Russia
Canada
Spain
France
Malaysia
Taiwan
Greece
Switzerland
Finland
the United Kingdom
Pakistan
Czech Republic
Philippines
Luxembourg
Argentina
Belgium
Italy
Germany
India
Sweden
Austria
Thailand
Denmark
Hungary
Netherlands
Poland
Peru
New Zealand
Brazil
Chile
Turkey
Mexico
Portugal
Asia
the Middle East
Europe
Africa
Asia
Oceana
Asia
Asia
Europe
Asia
Asia
North America
Europe
North America
Europe
Europe
Asia
Asia
Europe
Europe
Europe
Europe
the Middle East
Europe
Asia
Europe
Latin America
Europe
Europe
Europe
Asia
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Latin America
Oceana
Latin America
Latin America
the Middle East
Latin America
Europe
_________________________________________________________________________________________________________
32

(Steam, Gas and Hydraulic Turbines and Turbine Generator Set Units)
Countries in Europe
Rank
Percentile
22.10
21.53
16.72
16.58
15.98
15.83
15.79
15.69
15.50
15.46
14.36
14.17
13.48
12.64
12.39
11.85
11.71
11.57
11.56
11.41
11.25
10.72
10.68
10.67
9.83
9.74
9.66
9.45
8.53
6.36
6.30
6.14
6.14
5.03
4.50
4.42
4.05
3.85
3.79
3.68
3.31
3.19
3.18
3.05
2.64
0.47
0.43
0.42
0.41
0.40
0.38
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Ireland
Faroe Islands
Norway
Estonia
Monaco
Belarus
Slovakia
Iceland
Russia
Lithuania
Spain
France
Slovenia
Greece
Switzerland
Finland
Malta
Liechtenstein
Isle of Man
the United Kingdom
Czech Republic
Luxembourg
Latvia
Croatia
Belgium
Vatican City
Italy
Germany
Sweden
Austria
San Marino
Jersey
Guernsey
Denmark
Hungary
Netherlands
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Andorra
Albania
Romania
Bosnia & Herzegovina
Macedonia
Serbia & Montenegro
Portugal
Cyprus
_________________________________________________________________________________________________________

33
Receivables (Net)
Countries
Rank
Percentile
48.48
47.07
40.55
39.45
37.74
37.64
37.09
36.10
35.58
34.41
33.62
33.54
32.87
32.60
31.81
30.71
30.57
30.43
30.27
28.75
28.25
28.08
27.97
27.45
27.38
27.24
26.16
26.11
25.65
25.20
25.08
25.07
24.40
24.35
22.74
22.62
22.21
21.94
21.69
21.23
21.15
19.07
18.76
18.35
15.60
1
2
3
4
5
6
7
8
9
11
12
13
14
15
16
17
18
19
20
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
40
41
42
43
44
45
46
47
51
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
22.64
20.75
18.87
16.98
15.09
13.21
11.32
3.77
Region
_________________________________________________________________________________________________________
Spain
Portugal
Greece
India
Turkey
Mexico
France
Czech Republic
Italy
Philippines
Argentina
Netherlands
Israel
Ireland
Malaysia
Pakistan
Austria
the United Kingdom
South Africa
Denmark
Sweden
Norway
Germany
Japan
Belgium
Peru
Finland
New Zealand
Brazil
Singapore
Switzerland
Taiwan
Chile
South Korea
Canada
Hong Kong
USA
Russia
Luxembourg
China
Thailand
Hungary
Indonesia
Australia
Poland
Europe
Europe
Europe
Asia
the Middle East
Latin America
Europe
Europe
Europe
Asia
Latin America
Europe
the Middle East
Europe
Asia
the Middle East
Europe
Europe
Africa
Europe
Europe
Europe
Europe
Asia
Europe
Latin America
Europe
Oceana
Latin America
Asia
Europe
Asia
Latin America
Asia
North America
Asia
North America
Europe
Europe
Asia
Asia
Europe
Asia
Oceana
Europe
_________________________________________________________________________________________________________
34
Receivables (Net)
Countries in Europe
Rank
Percentile
48.48
47.07
45.51
45.06
40.55
37.58
37.09
37.08
36.10
35.87
35.86
35.58
34.26
34.25
33.54
32.91
32.60
31.98
30.85
30.57
30.43
30.28
29.52
29.52
28.75
28.25
28.08
27.97
27.38
27.04
26.16
25.08
24.44
23.78
23.48
23.40
22.44
22.41
22.36
21.94
21.89
21.69
21.69
19.07
17.15
16.31
16.05
15.60
14.02
13.49
13.47
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Spain
Portugal
Slovenia
Cyprus
Greece
Malta
France
Isle of Man
Czech Republic
Vatican City
Romania
Italy
Latvia
Croatia
Netherlands
Ireland
Macedonia
Serbia & Montenegro
Austria
the United Kingdom
San Marino
Jersey
Guernsey
Denmark
Sweden
Norway
Germany
Belgium
Andorra
Finland
Switzerland
Monaco
Albania
Estonia
Liechtenstein
Iceland
Belarus
Slovakia
Russia
Lithuania
Faroe Islands
Luxembourg
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

35
Total Inventories
Countries
Rank
Percentile
39.81
39.65
36.42
31.72
29.43
29.36
28.95
27.32
26.04
25.68
25.57
25.46
25.35
24.70
24.51
24.33
21.52
21.50
21.05
20.66
18.50
18.26
18.25
17.67
17.52
17.47
16.81
16.23
15.53
15.46
15.31
15.28
15.27
14.91
14.52
14.45
14.00
13.99
13.88
13.46
12.49
9.94
8.25
7.20
7.18
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
28
29
31
32
33
34
35
36
37
38
40
41
42
43
45
49
50
51
52
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
47.17
45.28
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
22.64
20.75
18.87
15.09
7.55
5.66
3.77
1.89
Region
_________________________________________________________________________________________________________
Pakistan
Peru
South Africa
Denmark
Australia
Portugal
Italy
New Zealand
Germany
Israel
Brazil
Ireland
Netherlands
France
Finland
Chile
Sweden
the United Kingdom
Norway
Thailand
China
USA
Austria
Switzerland
Hong Kong
Spain
Belgium
Greece
South Korea
Singapore
Japan
Luxembourg
Hungary
India
Canada
Czech Republic
Philippines
Russia
Indonesia
Argentina
Poland
Malaysia
Taiwan
Turkey
Mexico
the Middle East

Latin America
Africa
Europe
Oceana
Europe
Europe
Oceana
Europe
the Middle East
Latin America
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Europe
Asia
Asia
North America
Europe
Europe
Asia
Europe
Europe
Europe
Asia
Asia
Asia
Europe
Europe
Asia
North America
Europe
Asia
Europe
Asia
Latin America
Europe
Asia
Asia
the Middle East
Latin America
_________________________________________________________________________________________________________
36
Total Inventories
Countries in Europe
Rank
Percentile
34.61
31.72
29.36
29.18
28.95
28.29
28.11
26.04
25.46
25.35
24.70
24.51
21.52
21.50
21.05
18.44
18.25
18.08
17.67
17.63
17.63
17.47
16.81
16.80
16.49
16.40
16.23
15.28
15.27
15.05
14.99
14.97
14.85
14.45
14.28
14.25
13.99
13.96
13.74
13.72
13.71
13.06
12.86
12.49
11.23
10.81
10.79
6.84
6.28
6.10
5.88
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Albania
Denmark
Portugal
Vatican City
Italy
Andorra
Cyprus
Germany
Ireland
Netherlands
France
Finland
Sweden
the United Kingdom
Norway
Iceland
Austria
San Marino
Switzerland
Jersey
Guernsey
Spain
Belgium
Faroe Islands
Liechtenstein
Slovenia
Greece
Luxembourg
Hungary
Malta
Monaco
Estonia
Isle of Man
Czech Republic
Belarus
Slovakia
Russia
Lithuania
Ukraine
Latvia
Croatia
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Romania
Macedonia
Serbia & Montenegro
_________________________________________________________________________________________________________

37

Countries
Rank
Percentile
86.90
83.62
82.93
82.17
80.55
76.94
76.42
75.70
71.16
70.76
69.08
67.43
66.94
65.90
65.79
64.46
64.18
63.35
62.69
62.23
62.21
60.13
60.12
60.06
59.39
59.01
58.46
58.29
57.88
57.61
56.81
56.68
56.05
55.66
54.70
54.01
53.99
53.70
52.68
51.37
49.83
45.44
45.32
38.85
31.77
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
41
42
44
45
46
51
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
22.64
20.75
16.98
15.09
13.21
3.77
0.00
Region
_________________________________________________________________________________________________________
South Africa
Israel
Ireland
Pakistan
Spain
Portugal
France
Italy
Greece
Peru
Denmark
Norway
Germany
the United Kingdom
India
Finland
Netherlands
Czech Republic
Hong Kong
Japan
Australia
USA
China
Sweden
Philippines
Argentina
South Korea
Singapore
Taiwan
Switzerland
New Zealand
Austria
Indonesia
Canada
Malaysia
Belgium
Brazil
Thailand
Russia
Chile
Luxembourg
Turkey
Mexico
Hungary
Poland
Africa
the Middle East
Europe
the Middle East
Europe
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Asia
Asia
Oceana
North America
Asia
Europe
Asia
Latin America
Asia
Asia
Asia
Europe
Oceana
Europe
Asia
North America
Asia
Europe
Latin America
Asia
Europe
Latin America
Europe
the Middle East
Latin America
Europe
Europe
_________________________________________________________________________________________________________
38

Countries in Europe
Rank
Percentile
82.93
80.55
76.94
76.42
76.31
75.70
75.62
73.65
71.16
69.08
67.43
66.94
65.95
65.90
65.08
64.46
64.18
63.35
61.77
60.75
60.13
60.12
60.10
60.06
58.83
57.61
56.68
56.53
56.36
56.14
54.74
54.74
54.01
53.79
53.76
53.66
52.68
52.55
49.83
43.17
39.62
38.85
38.51
37.14
34.93
33.22
32.70
31.77
28.57
27.49
27.44
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Ireland
Spain
Portugal
France
Vatican City
Italy
Slovenia
Cyprus
Greece
Denmark
Norway
Germany
Malta
the United Kingdom
Isle of Man
Finland
Netherlands
Czech Republic
Albania
Iceland
Latvia
Faroe Islands
Croatia
Sweden
Andorra
Switzerland
Austria
Monaco
Estonia
San Marino
Guernsey
Jersey
Belgium
Belarus
Liechtenstein
Slovakia
Russia
Lithuania
Luxembourg
Romania
Hungary
Macedonia
Serbia & Montenegro
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

39

Countries
Rank
Percentile
60.82
49.74
42.66
40.91
40.59
40.39
35.78
35.48
33.50
32.37
30.55
29.91
29.40
29.17
28.69
28.27
28.01
27.84
27.32
27.30
26.60
25.17
24.64
24.45
24.30
23.31
23.18
22.56
22.36
21.41
20.81
17.57
16.34
15.64
15.45
14.57
14.37
11.74
11.73
9.11
9.04
7.99
6.76
5.72
5.71
1
2
3
4
5
6
7
8
11
13
15
16
18
19
20
21
22
23
24
25
26
28
29
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
79.25
75.47
71.70
69.81
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
47.17
45.28
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
11.32
9.43
7.55
5.66
3.77
1.89
Region
_________________________________________________________________________________________________________
Hungary
Poland
Brazil
Thailand
Chile
Philippines
Singapore
Indonesia
Malaysia
South Korea
China
Canada
New Zealand
Russia
Netherlands
Switzerland
Taiwan
Peru
Australia
Japan
Austria
the United Kingdom
Sweden
Luxembourg
Hong Kong
Denmark
Finland
Germany
India
USA
Portugal
Greece
Norway
Czech Republic
Spain
Argentina
Italy
Pakistan
France
Israel
Ireland
Belgium
South Africa
Turkey
Mexico
Europe
Europe
Latin America
Asia
Latin America
Asia
Asia
Asia
Asia
Asia
Asia
North America
Oceana
Europe
Europe
Europe
Asia
Latin America
Oceana
Asia
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Asia
North America
Europe
Europe
Europe
Europe
Europe
Latin America
Europe
the Middle East
Europe
the Middle East
Europe
Europe
Africa
the Middle East
Latin America
_________________________________________________________________________________________________________
40

Countries in Europe
Rank
Percentile
60.82
54.69
52.00
51.20
49.74
44.72
43.04
42.96
34.70
31.21
30.44
29.78
29.72
29.17
29.10
28.69
28.27
26.60
26.38
26.35
25.69
25.69
25.17
24.64
24.45
24.30
23.31
23.30
23.18
22.56
21.63
20.81
19.92
17.57
16.34
16.28
16.07
15.64
15.45
14.85
14.84
14.51
14.49
14.37
11.73
9.04
7.99
5.44
4.99
4.85
4.68
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Monaco
Estonia
Andorra
Belarus
Slovakia
Russia
Lithuania
Netherlands
Switzerland
Austria
Liechtenstein
San Marino
Jersey
Guernsey
the United Kingdom
Sweden
Luxembourg
Albania
Denmark
Faroe Islands
Finland
Germany
Iceland
Portugal
Cyprus
Greece
Norway
Malta
Isle of Man
Czech Republic
Spain
Latvia
Croatia
Slovenia
Vatican City
Italy
France
Ireland
Belgium
Romania
Macedonia
Serbia & Montenegro
_________________________________________________________________________________________________________

41

Countries
Rank
Percentile
29.27
14.53
12.58
12.03
10.07
9.91
9.72
8.97
8.70
8.28
7.83
7.20
6.94
6.74
6.71
6.10
4.97
3.59
2.56
2.34
2.19
2.17
2.08
2.01
2.01
1.98
1.94
1.50
1.35
1.15
1.04
0.89
0.54
0.33
0.31
0.31
0.27
0.27
1
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
31
32
33
34
35
36
37
38
40
41
97.67
93.02
90.70
88.37
86.05
83.72
81.40
79.07
76.74
74.42
72.09
69.77
67.44
65.12
62.79
60.47
58.14
55.81
53.49
51.16
48.84
46.51
44.19
41.86
39.53
37.21
34.88
32.56
27.91
25.58
23.26
20.93
18.60
16.28
13.95
11.63
6.98
4.65
Region
_________________________________________________________________________________________________________
Belgium
USA
Canada
Norway
Switzerland
Australia
Sweden
France
Luxembourg
Austria
Finland
Malaysia
New Zealand
Germany
Italy
the United Kingdom
Denmark
Singapore
Spain
Greece
Israel
Ireland
Czech Republic
Hong Kong
Netherlands
China
Argentina
South Korea
Russia
India
Japan
Peru
South Africa
Hungary
Turkey
Mexico
Poland
Thailand
Europe
North America
North America
Europe
Europe
Oceana
Europe
Europe
Europe
Europe
Europe
Asia
Oceana
Europe
Europe
Europe
Europe
Asia
Europe
Europe
the Middle East
Europe
Europe
Asia
Europe
Asia
Latin America
Asia
Europe
Asia
Asia
Latin America
Africa
Europe
the Middle East
Latin America
Europe
Asia
_________________________________________________________________________________________________________
42

Countries in Europe
Rank
Percentile
29.27
14.68
12.03
10.07
9.72
9.39
8.97
8.70
8.28
8.20
8.00
8.00
7.83
7.19
6.77
6.74
6.71
6.10
4.97
3.48
2.56
2.40
2.34
2.17
2.17
2.14
2.08
2.01
1.98
1.98
1.93
1.44
1.38
1.37
1.35
1.35
0.77
0.33
0.30
0.30
0.29
0.28
0.27
0.27
0.26
0.25
0.25
0.24
0.24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
97.96
95.92
93.88
91.84
89.80
87.76
85.71
83.67
81.63
79.59
77.55
75.51
73.47
71.43
69.39
67.35
65.31
63.27
61.22
59.18
57.14
55.10
53.06
51.02
48.98
46.94
44.90
42.86
40.82
38.78
36.73
34.69
32.65
30.61
28.57
26.53
24.49
22.45
20.41
18.37
16.33
14.29
12.24
10.20
8.16
6.12
4.08
2.04
0.00
_________________________________________________________________________________________________________
Belgium
Iceland
Norway
Switzerland
Sweden
Liechtenstein
France
Luxembourg
Austria
San Marino
Jersey
Guernsey
Finland
Andorra
Vatican City
Germany
Italy
the United Kingdom
Denmark
Monaco
Spain
Slovenia
Greece
Ireland
Malta
Isle of Man
Czech Republic
Netherlands
Latvia
Croatia
Faroe Islands
Estonia
Belarus
Slovakia
Russia
Lithuania
Albania
Hungary
Ukraine
Romania
Gibraltar
Georgia
Poland
Macedonia
Serbia & Montenegro
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________
3.3
3.3.1
FINANCIAL RETURNS
RATIOS
IN
43
POLAND: LIABILITY STRUCTURE
Overview
In this chapter we consider the liability structure of firms operating in Poland benchmarked against global averages.
The chapter begins by defining relevant terms. A common-size statement, or vertical analysis of liabilities and
shareholder equity is then presented for the proto-typical firm operating in Poland and the average global
benchmarks (sometimes referred to as a financial gap analysis). The figure reflect firms involved in steam, gas and
hydraulic turbines and turbine generator set units in Poland. For ratios where there are large deviations between
Poland and the benchmarks, graphics are provided (total liabilities and equity = 100 percent). Then the distribution
of ratios is presented in the form of ranks and percentiles. Certain key vertical analysis liability ratios are
highlighted.
3.3.2
Liabilities and Equity Definitions of Terms
The following definitions are provided for those less familiar with the liability-side of financial statement analysis.
As this chapter deals with the vertical analysis and global benchmarking of liabilities and equity, only definitions
covering certain terms used in this chapters tables and graphs are provided here. The glossary below reflects
commonly accepted definitions across various countries and official sources.
Accounts Payable. Accounts payable are defined as amounts owed on open account to private persons or
organizations for goods or services received.
Common Equity. Common equity is defined to equal the company's net worth. It typically comprises
capital stock, capital surplus, retained earnings, and, in some cases, net worth reserves. Common equity is
the portion of total net worth belonging to the common stockholders. Synonyms which are often used for
common equity are common stock and net worth.
Current Liabilities - Total. Total current liabilities are defined as the total amount of obligations which
would require the use of current assets or other current liabilities to pay.
Current Portion of Long Term Debt. The current proportion of long term debt is typically defined as debt
which is payable in more than one year.
Long Term Debt. Long-term debt is defined to be due in a period exceeding one year or one operating
cycle, whichever is longer. Long-term debt can have an extended repayment period such as a many-year
mortgage on land and buildings, or debt that's intended to be permanent such as bonds issued to investors.
Long Term Debt Excluding Capitalized Leases. Long term debt excluding capitalized leases is defined
as debt which is typically due in a period exceeding one year or one operating cycle, whichever is longer,
less capitalized leases (see Long Term Debt for exceptions). Capital leases are generally recorded as assets
with liability at the current value of the lease payment.
Shareholders Equity. Shareholders equity is commonly defined to be the amount of total equity reserved
for common and preferred shareholders.
44
Short Term Debt. Short term debt is generally defined as debt payable within one year.
Total Liabilities. Total liabilities are generally defined to include all the claims against a corporation.
Liabilities include accounts and wages and salaries payable, dividends declared payable, accrued taxes
payable, fixed or long-term liabilities such as mortgage bonds, debentures, and bank loans.
3.3.3
45
Liability Structure: Outlook
Using the methodology described in the introduction, the following table summarizes liability and equity structure
benchmarks for firms involved in steam, gas and hydraulic turbines and turbine generator set units in Poland. To
allow comparable benchmarking, a common index of Total Liabilities & Shareholders Equity = 100 is used. All
figures are current-year projections for companies operating in Poland based on latest financial results available.
Liability Structure
Poland
Europe World Avg.
_________________________________________________________________________________________________________
Accounts Payable
Short Term Debt & Current Portion of Long Term Debt
Other Current Liabilities
Current Liabilities - Total
Long Term Debt
Long Term Debt Excluding Capitalized Leases
Total Liabilities
Common Equity
Other Appropriated Reserves
Unappropriated Reserves
Total Liabilities & Shareholders Equity
7.33
14.48
7.05
28.86
8.20
8.20
37.07
44.72
20.36
20.73
100.00
12.07
12.07
12.86
36.78
9.95
9.81
50.49
41.30
7.07
7.03
100.00
12.85
10.39
11.64
36.82
6.27
6.20
45.11
46.61
4.64
11.54
100.00
_________________________________________________________________________________________________________
3.3.4
46
Large Variances: Liabilities
liability structure gaps between firms operating in Poland and the world average. A gap cannot necessarily be
Gap: Accounts Payable

15
10
12.07
12.85
7.33
5
0
-5
-5.52
-10
Poland
Europe
World Average
Gap
Gap: Short Term Debt & Current Portion of Long Term Debt
15
14.48
12.07
10.39
10
4.09
5
0
Poland
Europe
World Average
Gap
Gap: Other Current Liabilities

12.86
15
10
11.64
7.05
5
0
-5
Poland
Europe
World Average
-4.59
Gap
47
Gap: Current Liabilities - Total

40
30
36.78
36.82
28.86
20
10
0
-7.96
-10
Poland
Europe
World Average
Gap
Gap: Long Term Debt

9.95
10
8.2
6.27
6
4
1.93
2
0
Poland
Europe
World Average
Gap
Gap: Long Term Debt Excluding Capitalized Leases

9.81
10
8.2
6.2
6
4
2
0
Poland
Europe
World Average
Gap
Gap: Total Liabilities

60
50
40
30
20
10
0
-10
50.49
37.07
Poland
Europe
45.11
World Average
-8.04
Gap
48
Gap: Common Equity

50
44.72
41.3
46.61
40
30
20
10
0
-1.89
-10
Poland
Europe
World Average
Gap
Gap: Other Appropriated Reserves

25
20.36
20
15.72
15
10
7.07
4.64
0
Poland
Europe
World Average
Gap
Gap: Unappropriated Reserves

25
20.73
20
15
11.54
10
7.03
9.19
5
0
Poland
Europe
World Average
Gap
Gap: Total Liabilities & Shareholders Equity

100
100
100
100
80
60
40
20
0
Poland
Europe
World Average
Gap
3.3.5
49
We now consider the distribution of liability ratios for steam, gas and hydraulic turbines and turbine generator set
units using ranks and percentiles. What percent of countries have a value lower or higher than Poland (what is the
ratio's rank or percentile)? The table below answers this question with respect to the vertical analysis of liability
structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all
countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as
indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the
summary table below, a few key vertical liability ratios are highlighted in additional tables.
Liability Structure
Poland
Rank of Total
Percentile
Accounts Payable
Long Term Debt
Total Liabilities
Common Equity
7.33
14.48
7.05
28.86
8.20
8.20
37.07
44.72
20.36
20.73
100.00
46 of 50
12 of 53
38 of 53
39 of 53
29 of 48
28 of 48
44 of 53
26 of 53
5 of 49
4 of 37
8.00
77.36
28.30
26.42
39.58
41.67
16.98
50.94
89.80
89.19
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
50
Accounts Payable
Countries
Value (total liabilities & equity = 100)
Rank
Percentile
31.84
24.17
22.32
20.60
20.15
19.56
18.99
18.07
15.66
15.51
15.18
14.89
14.85
14.78
14.52
13.84
13.66
13.56
13.26
13.18
13.15
12.44
12.35
11.85
11.72
11.53
11.19
10.99
10.84
10.30
9.38
9.10
9.02
8.97
8.95
8.78
8.71
8.18
7.33
7.01
7.00
2.06
1
2
3
4
5
6
7
9
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
27
28
29
30
31
32
34
36
37
38
39
40
42
43
44
46
47
48
50
98.00
96.00
94.00
92.00
90.00
88.00
86.00
82.00
78.00
76.00
74.00
72.00
70.00
68.00
66.00
64.00
62.00
60.00
58.00
56.00
54.00
52.00
50.00
46.00
44.00
42.00
40.00
38.00
36.00
32.00
28.00
26.00
24.00
22.00
20.00
16.00
14.00
12.00
8.00
6.00
4.00
0.00
Region
_________________________________________________________________________________________________________
Belgium
Italy
Spain
Philippines
India
France
Brazil
Chile
Japan
Hong Kong
Singapore
Greece
Taiwan
Netherlands
the United Kingdom
New Zealand
Canada
Norway
Czech Republic
Denmark
South Korea
Sweden
Argentina
Russia
Australia
Thailand
Austria
Indonesia
Switzerland
China
Luxembourg
Germany
USA
Hungary
Malaysia
Israel
Ireland
Finland
Poland
Turkey
Mexico
Peru
Europe
Europe
Europe
Asia
Asia
Europe
Latin America
Latin America
Asia
Asia
Asia
Europe
Asia
Europe
Europe
Oceana
North America
Europe
Europe
Europe
Asia
Europe
Latin America
Europe
Oceana
Asia
Europe
Asia
Europe
Asia
Europe
Europe
North America
Europe
Asia
the Middle East
Europe
Europe
Europe
the Middle East
Latin America
Latin America
_________________________________________________________________________________________________________
51
Accounts Payable
Countries in Europe
Rank
Percentile
31.84
24.37
24.17
22.32
20.95
19.56
14.89
14.87
14.78
14.72
14.52
14.33
13.80
13.62
13.56
13.26
13.18
12.68
12.58
12.58
12.44
12.10
12.07
11.85
11.82
11.19
11.08
10.84
10.80
10.80
10.12
9.38
9.11
9.10
8.97
8.71
8.18
8.06
7.67
7.55
7.33
6.66
6.59
6.34
6.33
6.12
5.94
5.73
1.80
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
97.96
95.92
93.88
91.84
89.80
87.76
85.71
83.67
81.63
79.59
77.55
75.51
73.47
71.43
69.39
67.35
65.31
63.27
61.22
59.18
57.14
55.10
53.06
51.02
48.98
46.94
44.90
42.86
40.82
38.78
36.73
34.69
32.65
30.61
28.57
26.53
24.49
22.45
20.41
18.37
16.33
14.29
12.24
10.20
8.16
6.12
4.08
2.04
0.00
_________________________________________________________________________________________________________
Belgium
Vatican City
Italy
Spain
Slovenia
France
Greece
Faroe Islands
Netherlands
Monaco
the United Kingdom
Andorra
Malta
Isle of Man
Norway
Czech Republic
Denmark
Estonia
Latvia
Croatia
Sweden
Belarus
Slovakia
Russia
Lithuania
Austria
San Marino
Switzerland
Guernsey
Jersey
Liechtenstein
Luxembourg
Iceland
Germany
Hungary
Ireland
Finland
Ukraine
Gibraltar
Georgia
Poland
Romania
Moldova
Kazakhstan
Bulgaria
Macedonia
Serbia & Montenegro
Albania
_________________________________________________________________________________________________________
52

Countries
Rank
Percentile
60.54
58.44
57.60
52.51
52.20
49.47
48.47
47.78
45.62
44.98
42.99
42.62
41.74
41.66
41.58
41.02
40.85
40.74
40.61
40.11
39.05
37.83
37.20
36.79
36.11
35.29
34.60
33.26
33.15
33.01
32.94
31.08
31.01
30.90
30.83
29.13
28.86
28.55
27.30
26.03
25.68
25.51
25.28
23.73
23.18
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
23
24
25
26
27
28
30
31
32
33
34
35
36
37
38
39
40
41
42
45
46
47
50
51
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
56.60
54.72
52.83
50.94
49.06
47.17
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
15.09
13.21
11.32
5.66
3.77
Region
_________________________________________________________________________________________________________
Brazil
Spain
Chile
South Africa
Pakistan
Italy
Portugal
Taiwan
Greece
France
Norway
the United Kingdom
Austria
China
India
Denmark
Turkey
Mexico
Czech Republic
Belgium
Netherlands
Argentina
Japan
South Korea
Finland
Hungary
Hong Kong
Sweden
Russia
Switzerland
Germany
Israel
Thailand
Singapore
Ireland
Philippines
Poland
Luxembourg
Peru
USA
Malaysia
Australia
Canada
New Zealand
Indonesia
Latin America
Europe
Latin America
Africa
the Middle East
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Asia
Asia
Europe
the Middle East
Latin America
Europe
Europe
Europe
Latin America
Asia
Asia
Europe
Europe
Asia
Europe
Europe
Europe
Europe
the Middle East
Asia
Asia
Europe
Asia
Europe
Europe
Latin America
North America
Asia
Oceana
North America
Oceana
Asia
_________________________________________________________________________________________________________
53

Countries in Europe
Rank
Percentile
58.44
54.86
49.87
49.47
48.47
46.40
45.62
44.98
42.99
42.62
42.28
41.74
41.73
41.34
41.02
40.61
40.31
40.31
40.11
39.05
38.81
38.55
38.53
36.11
35.62
35.47
35.29
34.61
33.85
33.77
33.39
33.26
33.18
33.15
33.07
33.01
32.94
31.73
30.83
30.80
30.17
29.96
29.71
28.86
28.55
26.30
25.95
24.97
24.93
24.58
23.83
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Spain
Slovenia
Vatican City
Italy
Portugal
Cyprus
Greece
France
Norway
the United Kingdom
Malta
Austria
Isle of Man
San Marino
Denmark
Czech Republic
Guernsey
Jersey
Belgium
Netherlands
Romania
Latvia
Croatia
Finland
Estonia
Hungary
Macedonia
Belarus
Slovakia
Serbia & Montenegro
Sweden
Faroe Islands
Russia
Lithuania
Switzerland
Germany
Ukraine
Ireland
Liechtenstein
Gibraltar
Monaco
Georgia
Poland
Luxembourg
Iceland
Moldova
Kazakhstan
Bulgaria
Andorra
Albania
_________________________________________________________________________________________________________

54
Long Term Debt

Countries
Rank
Percentile
32.68
21.19
19.31
19.13
19.04
18.79
18.33
16.39
16.33
14.29
14.18
13.29
13.18
11.75
10.94
10.59
10.56
10.49
10.03
9.83
9.49
8.50
8.45
8.32
8.20
7.99
7.66
7.48
7.35
6.23
5.50
4.53
3.69
3.63
3.09
2.75
2.56
2.32
1.69
1.55
1.53
1
2
3
4
5
6
7
8
9
12
14
15
16
17
18
19
20
21
22
23
25
26
27
28
29
30
32
33
34
35
37
38
40
41
42
43
44
45
46
47
48
97.92
95.83
93.75
91.67
89.58
87.50
85.42
83.33
81.25
75.00
70.83
68.75
66.67
64.58
62.50
60.42
58.33
56.25
54.17
52.08
47.92
45.83
43.75
41.67
39.58
37.50
33.33
31.25
29.17
27.08
22.92
20.83
16.67
14.58
12.50
10.42
8.33
6.25
4.17
2.08
0.00
Region
_________________________________________________________________________________________________________
New Zealand
Belgium
Portugal
Finland
Thailand
Netherlands
Sweden
Switzerland
Norway
USA
Luxembourg
Denmark
Australia
Canada
Taiwan
Turkey
Mexico
Austria
Hungary
Germany
the United Kingdom
South Korea
Japan
France
Poland
India
Russia
Italy
Spain
Indonesia
Singapore
South Africa
Hong Kong
China
Greece
Czech Republic
Argentina
Malaysia
Peru
Israel
Ireland
Oceana
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
North America
Europe
Europe
Oceana
North America
Asia
the Middle East
Latin America
Europe
Europe
Europe
Europe
Asia
Asia
Europe
Europe
Asia
Europe
Europe
Europe
Asia
Asia
Africa
Asia
Asia
Europe
Europe
Latin America
Asia
Latin America
the Middle East
Europe
_________________________________________________________________________________________________________
55
Long Term Debt

Countries in Europe
Rank
Percentile
33.84
21.19
19.31
19.13
18.79
18.48
18.33
16.39
16.33
15.30
14.44
14.18
13.29
10.49
10.39
10.13
10.13
10.06
10.03
9.83
9.49
9.23
9.02
8.97
8.66
8.58
8.44
8.32
8.20
8.19
7.82
7.80
7.66
7.64
7.54
7.48
7.38
7.35
7.10
7.09
6.90
5.33
3.54
3.09
2.86
2.82
2.75
2.61
2.61
1.53
1.47
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Andorra
Belgium
Portugal
Finland
Netherlands
Cyprus
Sweden
Switzerland
Norway
Liechtenstein
Iceland
Luxembourg
Denmark
Austria
San Marino
Jersey
Guernsey
Romania
Hungary
Germany
the United Kingdom
Ukraine
Macedonia
Serbia & Montenegro
Gibraltar
Georgia
France
Poland
Estonia
Belarus
Slovakia
Russia
Lithuania
Vatican City
Italy
Moldova
Spain
Kazakhstan
Bulgaria
Slovenia
Monaco
Faroe Islands
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Ireland
Albania
_________________________________________________________________________________________________________

56
Total Liabilities
Countries
Rank
Percentile
67.94
67.25
67.09
66.15
64.53
64.47
63.76
63.36
61.47
60.67
60.17
60.05
58.24
57.68
57.21
57.04
56.88
56.64
56.35
53.05
52.06
51.92
51.65
50.71
50.38
49.75
49.19
48.53
45.83
45.42
45.32
44.29
43.73
41.26
40.01
39.43
38.81
37.78
37.07
35.30
35.01
31.52
30.75
29.75
29.13
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
30
31
32
34
35
38
39
40
42
43
44
45
46
47
48
49
51
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
43.40
41.51
39.62
35.85
33.96
28.30
26.42
24.53
20.75
18.87
16.98
15.09
13.21
11.32
9.43
7.55
3.77
Region
_________________________________________________________________________________________________________
Portugal
Belgium
Austria
Spain
Italy
Germany
Brazil
Netherlands
Sweden
Chile
Denmark
Norway
France
Finland
Taiwan
New Zealand
Switzerland
South Africa
the United Kingdom
Pakistan
Turkey
Mexico
India
Thailand
Japan
Greece
Luxembourg
South Korea
China
USA
Hungary
Czech Republic
Russia
Argentina
Australia
Canada
Hong Kong
Singapore
Poland
Israel
Ireland
Indonesia
Peru
Malaysia
Philippines
Europe
Europe
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
Asia
Oceana
Europe
Africa
Europe
the Middle East
the Middle East
Latin America
Asia
Asia
Asia
Europe
Europe
Asia
Asia
North America
Europe
Europe
Europe
Latin America
Oceana
North America
Asia
Asia
Europe
the Middle East
Europe
Asia
Latin America
Asia
Asia
_________________________________________________________________________________________________________
57
Total Liabilities
Countries in Europe
Rank
Percentile
67.94
67.25
67.09
66.45
66.15
65.05
65.03
64.79
64.79
64.53
64.47
63.36
62.10
61.47
60.17
60.05
59.07
58.24
57.68
56.88
56.35
53.08
49.75
49.47
49.19
46.78
46.11
45.88
45.51
45.39
45.32
44.65
44.55
44.29
44.12
43.73
43.63
42.56
42.04
42.02
40.76
38.75
38.15
37.22
37.07
36.63
35.01
33.33
32.07
32.01
26.84
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Portugal
Belgium
Austria
San Marino
Spain
Vatican City
Cyprus
Jersey
Guernsey
Italy
Germany
Netherlands
Slovenia
Sweden
Denmark
Norway
Andorra
France
Finland
Switzerland
the United Kingdom
Liechtenstein
Greece
Romania
Luxembourg
Estonia
Malta
Iceland
Isle of Man
Hungary
Belarus
Slovakia
Czech Republic
Macedonia
Russia
Lithuania
Serbia & Montenegro
Latvia
Croatia
Ukraine
Gibraltar
Georgia
Faroe Islands
Poland
Monaco
Ireland
Moldova
Kazakhstan
Bulgaria
Albania
_________________________________________________________________________________________________________

58
Common Equity
Countries
Rank
Percentile
70.87
69.29
69.25
64.70
64.69
64.17
60.19
59.97
59.11
56.07
54.68
53.58
50.89
50.04
49.10
48.70
48.32
47.94
47.81
46.95
45.09
44.72
44.36
42.27
42.12
42.01
41.92
41.54
40.96
39.82
39.57
39.49
38.36
36.79
36.37
36.33
34.89
34.43
34.23
34.03
32.76
32.56
32.09
32.06
31.17
1
2
3
4
5
6
8
10
11
12
13
14
15
16
17
18
19
20
21
22
25
26
28
29
30
31
32
33
35
36
37
38
39
41
42
43
44
45
46
47
48
49
50
51
52
98.11
96.23
94.34
92.45
90.57
88.68
84.91
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
52.83
50.94
47.17
45.28
43.40
41.51
39.62
37.74
33.96
32.08
30.19
28.30
26.42
22.64
20.75
18.87
16.98
15.09
13.21
11.32
9.43
7.55
5.66
3.77
1.89
Region
_________________________________________________________________________________________________________
Philippines
Malaysia
Peru
Israel
Indonesia
Ireland
Singapore
Australia
Hong Kong
Canada
Hungary
USA
China
South Korea
Thailand
Japan
India
Turkey
Mexico
Pakistan
Russia
Poland
Greece
South Africa
the United Kingdom
Switzerland
Taiwan
New Zealand
France
Denmark
Finland
Czech Republic
Norway
Argentina
Sweden
Luxembourg
Italy
Brazil
Germany
Netherlands
Chile
Belgium
Spain
Portugal
Austria
Asia
Asia
Latin America
the Middle East
Asia
Europe
Asia
Oceana
Asia
North America
Europe
North America
Asia
Asia
Asia
Asia
Asia
the Middle East
Latin America
the Middle East
Europe
Europe
Europe
Africa
Europe
Europe
Asia
Oceana
Europe
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Europe
Latin America
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
_________________________________________________________________________________________________________
59
Common Equity
Countries in Europe
Rank
Percentile
64.17
60.45
58.37
56.68
54.68
54.13
49.17
48.24
46.75
46.04
46.03
45.94
45.55
45.09
44.99
44.72
44.36
43.01
42.12
42.01
41.80
41.12
40.96
40.62
40.58
40.21
39.82
39.57
39.49
39.20
39.19
38.69
38.62
38.36
37.49
37.47
36.37
36.33
35.17
34.89
34.23
34.03
32.56
32.09
32.06
31.17
30.88
30.69
30.13
30.10
30.10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Ireland
Albania
Monaco
Faroe Islands
Hungary
Iceland
Ukraine
Estonia
Gibraltar
Belarus
Georgia
Slovakia
Romania
Russia
Lithuania
Poland
Greece
Andorra
the United Kingdom
Switzerland
Malta
France
Macedonia
Isle of Man
Moldova
Denmark
Finland
Czech Republic
Liechtenstein
Serbia & Montenegro
Kazakhstan
Bulgaria
Norway
Latvia
Croatia
Sweden
Luxembourg
Vatican City
Italy
Germany
Netherlands
Belgium
Spain
Portugal
Austria
San Marino
Cyprus
Slovenia
Guernsey
Jersey
_________________________________________________________________________________________________________

3.4
3.4.1
FINANCIAL RETURNS
RATIOS
IN
60
POLAND: INCOME STRUCTURE
Overview
In this chapter we consider the income structure of companies operating in Poland benchmarked against global
averages. The chapter begins by defining relevant terms. A common-size statement, or vertical analysis of income is
then presented for the proto-typical firm involved in steam, gas and hydraulic turbines and turbine generator set units
operating in Poland and the average global benchmarks (total revenue = 100 percent). For ratios where there are
large deviations between Poland and the benchmarks, graphics are provided. Then the distribution of ratios is
presented in the form of ranks and percentiles. Certain key vertical analysis income ratios are highlighted across
countries in the comparison group.
3.4.2
Income Statements Definitions of Terms
The following definitions are provided for those less familiar with the income-side of financial statement analysis. As
this chapter deals with the vertical analysis and global benchmarking of income, only definitions covering certain
terms used in this chapters tables and graphs are provided here. The glossary below reflects commonly accepted
definitions across various countries and official sources.
Amortization. Amortization generally refers to the depreciation, depletion, or charge-off to expense of

intangible and tangible assets over a period of time. Amortization is commonly understood to be the taking
as an expense (writing off) of the loss of value of an intangible asset such as a copyright, a patent, or a
mailing list, in an accounting period.
Cost of Goods Sold (excluding depreciation). For retail companies, cost of goods sold is generally
defined as the equivalent of starting inventory plus purchases minus ending inventory. In manufacturing,
cost of goods sold is defined to equal the starting inventory plus the cost of goods manufactured minus
ending inventory. Most pure service firms do not generally have cost of goods sold.
Depletion. Depletion is commonly defined to be included as one of the elements of amortization, and is
understood to be the portion of the carrying value (other than the portion associated with tangible assets)
prorated in each accounting period for financial reporting purposes.
Depreciation. Depreciation generally is defined as the expiration in the service life of fixed assets, other
than depletable assets, attributable to wear and tear, deterioration, action of the physical elements,
inadequacy and obsolescence. Depreciation is commonly defined as the portion of the cost of a fixed asset
charged as an expense during a particular period. In accounting for depreciation, the cost of a fixed asset,
less any salvage value, is prorated over the estimated service life of such an asset, and each period is
charged with a portion of such cost. Through this process, the cost of the asset is ultimately charged off as
an expense.
Earnings Before Interest and Taxes (EBIT). EBIT is a financial measure defined as revenues less cost of
goods sold and selling, general, and administrative expenses. In other words, operating and non-operating
profit before the deduction of interest and income taxes.
61
Gross Income. Gross income is commonly defined as all the money, goods, and property received by the
company that must be included as taxable income.
Interest Expense on Debt. Interest expenses on debt are those which are spent on current debt and added
to the net income so avoid underestimating interest coverage.
Net Income Available to Common. Net income available to common is defined as the net income
available to common stockholders.
Net Income Before Preferred Dividends. Net income before preferred dividends is generally calculated as
the difference between total revenues and total expense prior to the granting of preferred dividends.
Net Sales or Revenues. Revenues or net sales are defined as payments made to and received by an entity.
May take the form of taxes, user fees, fines, fees for service, and so on.
Operating Income. Operating income is generally defined to equal operating revenues less operating
expenses. It typically excludes items of other revenue and expense such as equity in earnings of
unconsolidated companies, dividends, interest income and expense, income taxes, extraordinary items, and
cumulative effect of accounting changes.
Pretax Income. Pretax income is generally defined as income before tax deductions.
Selling, General & Administrative Expenses. Selling, general and administrative expenses are expenses
independent from cost of sales for the purpose of illustrating the amount of the company's selling and
administrative costs. Generally included in this figure are the costs of employees' salaries, commissions,
and travel expenses; company payroll and office costs; and advertising and promotion.
3.4.3
62
Income Structure: Outlook
Using the methodology described in the introduction, the following table summarizes income structure benchmarks
for firms involved in steam, gas and hydraulic turbines and turbine generator set units in Poland. To allow
comparable benchmarking, a common index of Net Sales or Revenues = 100 is used. All figures are current-year
projections for companies operating in Poland based on latest financial results available.
Income Structure
Poland
Europe World Avg.
_________________________________________________________________________________________________________
Net Sales or Revenues

Cost of Goods Sold (Excluding Depreciation)
Depreciation, Depletion & Amortization
Gross Income
Selling, General & Administrative Expenses
Operating Income
Other Income/Expense Net
Earnings Before Interest and Taxes (EBIT)
Interest Expense on Debt
Pretax Income
Net Income Before Extra Items/Prefer Dividends
Net Income Before Preferred Dividends
Net Income Available to Common
100.00
64.58
6.99
10.22
8.51
1.73
0.72
2.45
1.40
1.05
1.05
1.05
1.05
100.00
70.09
4.68
18.16
13.76
5.46
0.83
8.40
4.33
4.14
2.61
2.62
2.61
100.00
69.36
4.50
16.64
9.33
6.55
1.48
9.61
3.64
6.00
4.29
4.43
4.29
_________________________________________________________________________________________________________
3.4.4
63
Large Variances: Income
income structure gaps between firms operating in Poland and the world average. A gap cannot necessarily be
Gap: Cost of Goods Sold (Excluding Depreciation)

80
64.58
70.09
69.36
60
40
20
0
-4.78
-20
Poland
Europe
World Average
Gap
Gap: Depreciation, Depletion & Amortization

8
6.99
4.68
4.5
2.49
2
0
Poland
Europe
World Average
Gap
Gap: Gross Income

18.16
20
15
10
16.64
10.22
5
0
-5
-6.42
-10
Poland
Europe
World Average
Gap
64
Gap: Selling, General & Administrative Expenses

13.76
15
10
9.33
8.51
5
0
-0.82
-5
Poland
Europe
World Average
Gap
Gap: Operating Income

8
6
4
2
0
-2
-4
-6
5.46
6.55
1.73
-4.82
Poland
Europe
World Average
Gap
Gap: Earnings Before Interest and Taxes (EBIT)

8.4
10
5
9.61
2.45
0
-5
-7.16
-10
Poland
Europe
World Average
Gap
Gap: Interest Expense on Debt

6
4.33
4
2
3.64
1.4
0
-2
-2.24
-4
Poland
Europe
World Average
Gap
65
Gap: Pretax Income

6
4.14
4
2
1.05
0
-2
-4
-4.95
-6
Poland
Europe
World Average
Gap
Gap: Net Income Before Extra Items/Prefer Dividends

6
4.29
4
2
2.61
1.05
0
-2
-3.24
-4
Poland
Europe
World Average
Gap
Gap: Net Income Before Preferred Dividends

6
4.43
4
2
2.62
1.05
0
-2
-3.38
-4
Poland
Europe
World Average
Gap
Gap: Net Income Available to Common

6
4.29
4
2
2.61
1.05
0
-2
-3.24
-4
Poland
Europe
World Average
Gap
3.4.5
66
We now consider the distribution of income ratios for steam, gas and hydraulic turbines and turbine generator set
ratio's rank or percentile)? The table below answers this question with respect to the vertical analysis of income
structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all
countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as
indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the
summary table below, a few key vertical income ratios are highlighted in additional tables.
Income Structure
Poland
Rank of Total
Percentile

Gross Income
Operating Income
Pretax Income
100.00
64.58
6.99
10.22
8.51
1.73
0.72
2.45
1.40
1.05
1.05
1.05
1.05
42 of 52
7 of 53
45 of 52
36 of 46
46 of 53
28 of 53
49 of 53
31 of 53
48 of 53
43 of 53
43 of 53
43 of 53
19.23
86.79
13.46
21.74
13.21
47.17
7.55
41.51
9.43
18.87
18.87
18.87
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
67

Countries
Value (total revenue = 100)
Rank
Percentile
90.62
89.40
88.70
88.31
87.88
85.34
83.94
82.83
80.14
79.88
78.96
77.69
77.62
76.49
76.48
76.47
75.55
74.93
74.02
73.34
73.18
73.11
72.79
72.53
72.22
71.69
70.30
70.28
70.19
69.67
69.56
69.10
68.44
68.41
67.89
67.33
67.16
64.58
63.43
63.25
62.95
62.88
62.58
58.30
1
2
3
4
5
6
7
8
10
11
12
13
14
16
17
18
19
20
21
23
24
25
26
27
28
29
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
50
98.08
96.15
94.23
92.31
90.38
88.46
86.54
84.62
80.77
78.85
76.92
75.00
73.08
69.23
67.31
65.38
63.46
61.54
59.62
55.77
53.85
51.92
50.00
48.08
46.15
44.23
40.38
38.46
36.54
34.62
32.69
30.77
28.85
26.92
25.00
23.08
21.15
19.23
17.31
15.38
13.46
11.54
9.62
3.85
Region
_________________________________________________________________________________________________________
Philippines
Belgium
New Zealand
Portugal
Taiwan
Denmark
India
France
South Korea
Spain
Hungary
South Africa
Norway
Austria
Finland
Australia
Singapore
Indonesia
Canada
Germany
China
Brazil
Switzerland
Peru
Russia
Japan
Greece
Netherlands
Thailand
Sweden
Chile
the United Kingdom
Hong Kong
Malaysia
Israel
Ireland
Italy
Poland
Turkey
Mexico
Luxembourg
USA
Czech Republic
Argentina
Asia
Europe
Oceana
Europe
Asia
Europe
Asia
Europe
Asia
Europe
Europe
Africa
Europe
Europe
Europe
Oceana
Asia
Asia
North America
Europe
Asia
Latin America
Europe
Latin America
Europe
Asia
Europe
Europe
Asia
Europe
Latin America
Europe
Asia
Asia
the Middle East
Europe
Europe
Europe
the Middle East
Latin America
Europe
North America
Europe
Latin America
_________________________________________________________________________________________________________
68

Countries in Europe
Rank
Percentile
91.86
89.40
88.31
85.34
84.53
82.83
79.88
78.96
77.62
77.26
76.49
76.48
75.76
74.99
73.87
73.87
73.74
73.57
73.34
73.26
72.79
72.22
72.05
71.01
70.30
70.28
69.67
69.10
67.92
67.70
67.51
67.33
67.16
66.47
65.63
65.15
64.58
64.30
63.53
63.31
62.95
62.58
60.26
59.40
59.38
58.06
55.87
55.77
55.30
53.75
51.85
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Andorra
Belgium
Portugal
Denmark
Cyprus
France
Spain
Hungary
Norway
Estonia
Austria
Finland
San Marino
Slovenia
Jersey
Guernsey
Belarus
Slovakia
Germany
Monaco
Switzerland
Russia
Lithuania
Ukraine
Greece
Netherlands
Sweden
the United Kingdom
Liechtenstein
Vatican City
Gibraltar
Ireland
Italy
Georgia
Faroe Islands
Malta
Poland
Isle of Man
Iceland
Albania
Luxembourg
Czech Republic
Romania
Latvia
Croatia
Moldova
Kazakhstan
Bulgaria
Macedonia
Serbia & Montenegro
_________________________________________________________________________________________________________

69

Countries
Rank
Percentile
28.49
28.26
26.51
26.27
25.90
25.12
22.54
21.79
20.82
19.42
18.12
18.08
17.87
17.85
17.15
16.96
16.58
16.50
15.50
14.65
14.27
13.83
12.73
12.54
11.16
10.41
10.40
10.21
9.92
9.39
9.27
8.72
8.51
8.37
8.35
8.29
7.97
6.46
0.93
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
18
19
20
22
23
24
26
27
28
29
30
31
32
33
34
35
36
38
39
40
41
42
45
97.83
95.65
93.48
91.30
89.13
86.96
84.78
82.61
80.43
78.26
76.09
73.91
71.74
69.57
67.39
65.22
60.87
58.70
56.52
52.17
50.00
47.83
43.48
41.30
39.13
36.96
34.78
32.61
30.43
28.26
26.09
23.91
21.74
17.39
15.22
13.04
10.87
8.70
2.17
Region
_________________________________________________________________________________________________________
Israel
Ireland
Netherlands
Peru
USA
the United Kingdom
Sweden
Italy
Japan
South Africa
Turkey
Mexico
Thailand
Finland
Germany
Canada
Hong Kong
Switzerland
China
France
Luxembourg
Malaysia
Norway
Greece
Czech Republic
Hungary
Argentina
Denmark
Austria
Australia
South Korea
Taiwan
Poland
Brazil
Russia
Singapore
Chile
Indonesia
Philippines
the Middle East

Europe
Europe
Latin America
North America
Europe
Europe
Europe
Asia
Africa
the Middle East
Latin America
Asia
Europe
Europe
North America
Asia
Europe
Asia
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Oceana
Asia
Asia
Europe
Latin America
Europe
Asia
Latin America
Asia
Asia
_________________________________________________________________________________________________________
70

Countries in Europe
Rank
Percentile
28.26
26.51
26.17
25.12
22.93
22.54
21.97
21.79
17.85
17.22
17.15
16.50
15.90
15.80
15.39
15.36
14.82
14.65
14.27
12.73
12.54
11.62
11.47
11.16
10.60
10.59
10.41
10.21
9.92
9.82
9.58
9.58
9.36
8.94
8.90
8.76
8.53
8.51
8.51
8.35
8.33
8.04
7.65
7.36
7.35
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
97.78
95.56
93.33
91.11
88.89
86.67
84.44
82.22
80.00
77.78
75.56
73.33
71.11
68.89
66.67
64.44
62.22
60.00
57.78
55.56
53.33
51.11
48.89
46.67
44.44
42.22
40.00
37.78
35.56
33.33
31.11
28.89
26.67
24.44
22.22
20.00
17.78
15.56
13.33
11.11
8.89
6.67
4.44
2.22
0.00
_________________________________________________________________________________________________________
Ireland
Netherlands
Iceland
the United Kingdom
Albania
Sweden
Vatican City
Italy
Finland
Romania
Germany
Switzerland
Faroe Islands
Liechtenstein
Macedonia
Serbia & Montenegro
France
Luxembourg
Norway
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Hungary
Denmark
Austria
San Marino
Jersey
Guernsey
Ukraine
Estonia
Gibraltar
Georgia
Belarus
Poland
Slovakia
Russia
Lithuania
Monaco
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________
71
Operating Income
Countries
Rank
Percentile
13.67
11.79
11.49
11.22
11.15
11.12
11.05
9.82
8.69
8.64
8.46
7.86
7.83
7.64
7.42
7.41
7.00
6.96
6.87
6.52
6.45
6.40
6.27
6.10
5.94
5.61
5.30
5.16
4.51
3.95
3.86
3.72
3.67
3.52
3.17
2.78
2.54
2.12
1.73
1.50
1.39
0.95
0.69
-2.29
-2.31
1
2
3
4
5
6
7
10
11
12
13
15
16
17
18
19
20
21
22
23
24
25
27
28
29
30
31
32
34
35
36
38
39
40
42
43
44
45
46
47
48
50
51
52
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
81.13
79.25
77.36
75.47
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
49.06
47.17
45.28
43.40
41.51
39.62
35.85
33.96
32.08
28.30
26.42
24.53
20.75
18.87
16.98
15.09
13.21
11.32
9.43
5.66
3.77
1.89
0.00
Region
_________________________________________________________________________________________________________
Spain
Brazil
Indonesia
Chile
Turkey
Mexico
Hong Kong
Singapore
South Africa
India
Malaysia
Greece
Netherlands
New Zealand
USA
Canada
Czech Republic
South Korea
Pakistan
Argentina
the United Kingdom
Italy
Russia
France
Belgium
Sweden
China
Norway
Thailand
Japan
Finland
Portugal
Switzerland
Austria
Luxembourg
Denmark
Germany
Hungary
Poland
Philippines
Taiwan
Australia
Peru
Ireland
Israel
Europe
Latin America
Asia
Latin America
the Middle East
Latin America
Asia
Asia
Africa
Asia
Asia
Europe
Europe
Oceana
North America
North America
Europe
Asia
the Middle East
Latin America
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Asia
Oceana
Latin America
Europe
the Middle East
_________________________________________________________________________________________________________
72
Operating Income
Countries in Europe
Rank
Percentile
13.67
12.83
10.60
10.60
9.73
9.52
9.45
9.12
7.92
7.86
7.83
7.50
7.28
7.19
7.00
6.71
6.64
6.64
6.45
6.45
6.40
6.40
6.39
6.27
6.25
6.10
5.94
5.61
5.16
3.86
3.72
3.67
3.56
3.52
3.48
3.42
3.39
3.39
3.17
2.78
2.54
2.12
1.91
1.81
1.79
1.73
1.56
1.50
1.50
0.60
-2.29
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Spain
Slovenia
Faroe Islands
Romania
Monaco
Macedonia
Serbia & Montenegro
Andorra
Greece
Netherlands
Iceland
Malta
Isle of Man
Czech Republic
Estonia
Latvia
Croatia
Vatican City
the United Kingdom
Belarus
Italy
Slovakia
Russia
Lithuania
France
Belgium
Sweden
Norway
Finland
Portugal
Switzerland
Cyprus
Austria
San Marino
Liechtenstein
Guernsey
Jersey
Luxembourg
Denmark
Germany
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Albania
Ireland
_________________________________________________________________________________________________________

73

Countries
Rank
Percentile
35.95
35.85
27.11
25.79
13.70
13.08
11.65
11.48
10.85
10.78
10.66
9.91
9.81
9.08
8.82
7.99
7.82
7.73
7.59
7.56
7.53
7.39
7.34
7.32
6.82
6.68
6.66
6.61
6.36
6.06
5.61
5.49
4.89
4.71
4.07
3.73
3.16
3.04
3.00
2.78
2.71
2.45
2.04
-1.63
-1.65
1
2
4
5
6
7
8
9
10
11
12
14
15
16
18
19
20
22
23
24
25
26
27
28
29
31
32
33
35
36
38
39
40
41
42
43
44
45
46
47
48
49
50
52
53
98.11
96.23
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
73.58
71.70
69.81
66.04
64.15
62.26
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
41.51
39.62
37.74
33.96
32.08
28.30
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
11.32
9.43
7.55
5.66
1.89
0.00
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Brazil
Chile
Spain
Greece
Czech Republic
India
Argentina
Indonesia
Malaysia
Singapore
Hong Kong
New Zealand
South Africa
Italy
Netherlands
Thailand
USA
Canada
France
China
South Korea
Norway
the United Kingdom
Pakistan
Sweden
Russia
Finland
Taiwan
Germany
Austria
Portugal
Switzerland
Luxembourg
Belgium
Denmark
Australia
Hungary
Japan
Peru
Poland
Philippines
Ireland
Israel
the Middle East

Latin America
Latin America
Latin America
Europe
Europe
Europe
Asia
Latin America
Asia
Asia
Asia
Asia
Oceana
Africa
Europe
Europe
Asia
North America
North America
Europe
Asia
Asia
Europe
Europe
the Middle East
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Oceana
Europe
Asia
Latin America
Europe
Asia
Europe
the Middle East
_________________________________________________________________________________________________________
74

Countries in Europe
Rank
Percentile
34.16
31.35
30.47
29.39
13.70
13.08
12.86
12.13
11.97
11.65
11.05
11.05
9.61
9.41
9.40
8.05
7.99
7.82
7.67
7.53
7.32
7.07
6.82
6.75
6.73
6.66
6.61
6.59
6.36
5.61
5.49
5.44
5.30
5.30
4.89
4.71
4.68
4.39
4.07
3.73
3.16
3.00
2.70
2.57
2.53
2.45
2.36
2.21
2.12
2.12
-1.63
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Spain
Greece
Slovenia
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Monaco
Faroe Islands
Andorra
Vatican City
Italy
Netherlands
Iceland
France
Norway
Estonia
the United Kingdom
Belarus
Slovakia
Sweden
Russia
Lithuania
Finland
Germany
Austria
San Marino
Guernsey
Jersey
Portugal
Switzerland
Cyprus
Liechtenstein
Luxembourg
Belgium
Denmark
Hungary
Ukraine
Gibraltar
Georgia
Poland
Albania
Moldova
Kazakhstan
Bulgaria
Ireland
_________________________________________________________________________________________________________

75
Pretax Income
Countries
Rank
Percentile
15.44
14.69
13.06
11.91
10.76
9.67
9.58
9.47
9.21
9.11
8.92
7.87
7.25
6.56
6.43
6.27
6.02
5.99
5.76
5.73
5.72
5.45
5.07
5.04
4.74
4.57
4.34
4.29
4.15
3.43
3.39
3.35
2.97
2.46
2.14
1.83
1.39
1.30
1.29
1.25
1.05
-1.98
-1.99
-6.48
-6.50
1
2
3
4
5
6
7
8
9
10
11
14
15
16
18
19
20
21
22
23
24
25
27
28
30
32
33
34
35
36
37
38
39
40
41
42
44
45
46
47
48
49
50
52
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
73.58
71.70
69.81
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
49.06
47.17
43.40
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
16.98
15.09
13.21
11.32
9.43
7.55
5.66
1.89
0.00
Region
_________________________________________________________________________________________________________
Brazil
Chile
Spain
Hong Kong
Greece
India
Czech Republic
Malaysia
Singapore
Indonesia
Argentina
South Africa
New Zealand
Canada
USA
Thailand
France
Italy
Netherlands
Norway
the United Kingdom
Pakistan
South Korea
China
Sweden
Russia
Finland
Germany
Austria
Switzerland
Portugal
Taiwan
Luxembourg
Belgium
Japan
Philippines
Denmark
Australia
Hungary
Peru
Poland
Ireland
Israel
Mexico
Turkey
Latin America
Latin America
Europe
Asia
Europe
Asia
Europe
Asia
Asia
Asia
Latin America
Africa
Oceana
North America
North America
Asia
Europe
Europe
Europe
Europe
Europe
the Middle East
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Asia
Asia
Europe
Oceana
Europe
Latin America
Europe
Europe
the Middle East
Latin America
the Middle East
_________________________________________________________________________________________________________
76
Pretax Income
Countries in Europe
Rank
Percentile
13.06
12.26
11.42
10.76
9.97
9.84
9.58
9.09
9.09
8.93
7.51
6.50
6.04
6.02
5.99
5.76
5.73
5.72
4.89
4.74
4.67
4.66
4.57
4.56
4.34
4.29
4.15
4.11
4.00
4.00
3.43
3.39
3.25
3.20
2.97
2.46
1.39
1.29
1.16
1.10
1.09
1.08
1.05
0.95
0.91
0.91
-1.98
-5.31
-5.51
-5.67
-6.18
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Spain
Slovenia
Faroe Islands
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Monaco
Andorra
Iceland
Vatican City
France
Italy
Netherlands
Norway
the United Kingdom
Estonia
Sweden
Belarus
Slovakia
Russia
Lithuania
Finland
Germany
Austria
San Marino
Guernsey
Jersey
Switzerland
Portugal
Cyprus
Liechtenstein
Luxembourg
Belgium
Denmark
Hungary
Ukraine
Gibraltar
Albania
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Ireland
Serbia & Montenegro
Macedonia
Romania
_________________________________________________________________________________________________________

3.5
3.5.1
77
FINANCIAL RETURNS IN POLAND: PROFITABILITY RATIOS

Overview
In this chapter we consider additional financial ratios estimated for firms involved in steam, gas and hydraulic
turbines and turbine generator set units operating in Poland benchmarked against global averages. The chapter begins
by defining relevant terms. Estimates are then presented for the proto-typical firm operating in Poland compared to
average global benchmarks. For ratios where there are large deviations between the average firm in Poland and the
benchmarks, graphics are provided. Then the distribution of ratios is presented in the form of ranks and percentiles.
Certain key ratios are highlighted across countries in the comparison group.
3.5.2
Ratios Definitions of Terms
The following definitions are provided for those less familiar with financial ratio analysis. As this chapter deals with
the global benchmarking of ratios, only definitions covering certain terms used in this chapters tables and graphs are
provided here. The glossary below reflects commonly accepted definitions across various countries and official
sources.
Accounts Receivables Days. The number of days' receivable sales generally correlates to the amount of the
accounts receivables to the average daily sales on account. Accounts receivables days is often determined
by dividing the gross receivables by (net sales/365).
Cash Earnings Return On Equity (%). Cash earnings return on equity generally measures the return of
revenues to the shareholders. This ratio is generally calculated by dividing (net income before nonrecurring
items minus preferred dividends) by the average common equity.
Cash Flow. Cash flow is generally defined as being equal to the company's net income plus the charge-off
amounts for depreciation, depletion, amortization, extraordinary charges to reserves. These are
bookkeeping deductions which are not paid out as cash.
Current Ratio. The current ratio is generally defined as a ratio of liquidity measuring the ability of a
business to pay its current obligations when due. The current ratio is generally calculated by dividing total
current assets by total current liabilities. Managers and lenders often want the current ratio to be 2.00 or
greater. This ratio is often seen as an indication of short-term debt-paying ability. The higher the ratio, the
more liquid the company.
Fixed Charge Coverage Ratio. The fixed charge coverage ratio is generally seen as an indication of the
company's ability to cover its fixed charges. This ratio is typically determined by dividing recurring
earnings excluding interest expense, tax expense, equity earnings, and minority earnings plus interest from
rentals by interest expense including capitalized interest and interest from rentals.
Gross Profit Margin (%). The gross profit margin is typically defined to equals the difference, in percent,
between net sales revenue and the cost of goods sold.
Inventories (# of Days) Held. Inventory days held is generally determined by dividing the ending
inventory by (the cost of goods held/365). The number of days held results in the average daily cost of
goods held.
78
Inventory Turnover (%). Inventory turnover is used as a measure of the balance of inventory. It generally
compares the amount of inventory with the total sales for the year. The ratio can reflect both on the quality
of the inventory and the efficiency of management. Typically, the higher the turnover rate, the greater the
likelihood that profits would be larger and less working capital bound up in inventory.
Net Margin (%). The net margin is the ratio of net income dollars generated by each dollar of sales.
Operating Profit Margin (%). Operating profit margin percent is the ratio of operating profit to net sales.
Operating profit (loss) is income or loss before taxes calculated by the difference between total revenues and
total expense disregarding the effects of any extraordinary transactions.
Quick Ratio. The quick ratio, also commonly known as the acid test ratio, is a refined current ratio and is
often seen as a more conservative measure of liquidity. The quick ratio is generally determined by dividing
cash and equivalents plus trade receivables by total current liabilities. The ratio shows the degree to which a
company's current liabilities can be covered by the most liquid current assets. Financial management texts
generally conclude that any value of less than 1 to 1 implies a reciprocal dependency on inventory or other
current assets to liquidate short-term debt.
Reinvestment Rate - Total (%). The reinvestment rate is typically defined as the rate at which an investor
assumes interest payments made on a debt security can be reinvested over the life of that security.
Return on Assets (%). Return on assets is generally used to measure a company's ability to use assets to
create profit.
Return on Equity - Total (%). The return on total equity ratio is often seen to reflect the profitability of
the company's operations after income taxes. Return on equity is often considered to be a good measure of
the company's profitability. Tax laws and tax loss carryovers can affect the net income and therefore can
also affect the return on equity.
Return on Invested Capital (%). The ratio of return on invested capital is typically defined as an
evaluation of earnings performance without regard to the method of financing. This ratio measures the
earnings on investment and is an indication of how well the company utilizes its asset base. Return on
investment is a type of return on capital, therefore this ratio can be an indication of the companys ability to
reward investors who provide long-term funds and to attract future investors.
Working Capital. Net working capital equals the difference between total current assets and total current
liabilities. Working capital often reflects a company's ability to expand volume and meet obligations. Since
growth is usually one goal, the amount of working capital on this year's balance sheet should be greater than
that of the previous year's. This is an efficiency, or turnover, ratio which benchmarks the rate at which
current assets less current liabilities are used by the company in making sales. A low ratio can indicate a
less profitable use of working capital in making sales. On the other hand, a very high ratio can indicate the
company is wasting current assets which could be more efficiently deployed in production and in increasing
sales and profits; or that the company my be undercapitalized, and thus vulnerable to liquidity problems in a
period of weak business conditions.
3.5.3
79
Ratio Structure: Outlook
Using the methodology described in the introduction, the following table summarizes ratio structure benchmarks for
firms involved in steam, gas and hydraulic turbines and turbine generator set units in Poland. All figures are currentyear projections for companies operating in Poland based on latest financial results available.
Ratios
Poland
Europe World Avg.
_________________________________________________________________________________________________________
Profitability
Return on Equity - Total (%)
Reinvestment Rate - Total (%)
Return on Assets (%)
Return on Invested Capital (%)
Cash Earnings Return On Equity (%)
Cash Flow % Sales
Cost Goods Sold / Sales (%)
Gross Profit Margin (%)
Selling, General & Administrative Expense/Net Sales (%)
Operating Profit Margin (%)
Operating Inc / Total Capital (%)
Pretax Margin (%)
Net Margin (%)
Total Asset Turnover (X) th USD
Asset Utilization
Inventory Turnover (%)
Net Sales % Working Capital
Capital Expenditure % Total Assets
Capital Expenditure % Total Sales
Leverage
Total Debt % Total Capital
Long Term Debt % Total Capital
Equity % Total Capital
Total Debt % Total Assets
Common Equity % Total Assets
Total Capital % Assets
Fixed Charge Coverage Ratio
Fixed Assets % Common Equity
Working Capital % Total Capital
Liquidity
Quick Ratio
Current Ratio
Cash & Equivalents % Total Current Assets
Receivables % Total Current Assets
Inventories % Total Current Assets
Accounts Receivables Days
Inventories (# of Days) Held
1.81
1.81
1.76
2.32
15.61
9.10
64.58
10.22
8.51
1.73
2.64
1.05
1.05
0.74
8.41
0.54
5.54
8.99
19.12
7.04
70.09
18.16
12.56
5.46
11.46
4.14
2.62
1.00
11.23
4.31
7.52
11.23
13.86
8.76
69.36
16.64
8.76
6.55
13.01
6.00
4.43
0.97
4.17
20.94
6.57
7.21
5.77
7.78
6.00
8.77
5.42
0.95
4.74
7.07
27.52
12.68
69.11
22.68
44.72
52.92
1.43
90.97
4.50
31.57
17.99
72.70
21.96
41.37
52.70
16.50
67.92
36.06
23.33
11.25
79.34
16.58
46.61
54.37
61.22
67.16
33.69
0.55
0.90
9.48
40.15
32.16
66.78
57.74
1.13
1.67
14.55
47.48
29.19
108.30
80.22
1.20
1.75
18.14
44.00
27.67
110.57
99.11
_________________________________________________________________________________________________________
3.5.4
80
Large Variances: Ratios
ratio structure gaps between firms operating in Poland and the world average. A gap cannot necessarily be
Gap: Return on Equity - Total (%)

15
8.41
10
5
11.23
1.81
0
-5
-9.42
Gap
-10
Poland
Europe
World Average
Gap: Return on Invested Capital (%)

15
8.99
10
5
11.23
2.32
0
-5
-8.91
-10
Poland
Europe
World Average
Gap
Gap: Operating Inc / Total Capital (%)

15
11.46
13.01
10
5
2.64
0
-5
-10
-10.37
-15
Poland
Europe
World Average
Gap
81
Gap: Net Sales % Working Capital

25
20.94
19.99
20
15
7.78
10
5
0.95
0
Poland
Europe
World Average
Gap
Gap: Equity % Total Capital

80
69.11
72.7
79.34
60
40
20
0
-10.23
-20
Poland
Europe
World Average
Gap
Gap: Fixed Charge Coverage Ratio

100
61.22
50
1.43
16.5
-50
-59.79
-100
Poland
Europe
World Average
Gap
Gap: Fixed Assets % Common Equity

100
90.97
80
67.92
67.16
60
40
23.81
20
0
Poland
Europe
World Average
Gap
82
Gap: Working Capital % Total Capital

36.06
40
20
33.69
4.5
0
-20
-29.19
-40
Poland
Europe
World Average
Gap
Gap: Cash & Equivalents % Total Current Assets

18.14
20
15
10
14.55
9.48
5
0
-5
-8.66
-10
Poland
Europe
World Average
Gap
Gap: Accounts Receivables Days

150
100
108.3
110.57
66.78
50
0
-43.79
Gap
-50
Poland
Europe
World Average
Gap: Inventories (# of Days) Held

99.11
100
80.22
57.74
50
0
-41.37
-50
Poland
Europe
World Average
Gap
3.5.5
83
We now consider the distribution of financial ratios for steam, gas and hydraulic turbines and turbine generator set
ratio's rank or percentile)? The table below answers this question with respect to financial ratios. The ranks and
percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in
the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank).
Again, a high or low figure does not necessarily indicate good or bad performance. After the summary table below, a
few key financial ratios are highlighted in additional tables.
Ratios
Poland
Rank of Total
Percentile
1.81
1.81
1.76
2.32
15.61
9.10
64.58
10.22
8.51
1.73
2.64
1.05
1.05
0.74
44 of 53
41 of 53
49 of 53
49 of 53
32 of 53
16 of 53
42 of 52
45 of 52
35 of 46
46 of 53
51 of 53
48 of 53
43 of 53
47 of 53
16.98
22.64
7.55
7.55
39.62
69.81
19.23
13.46
23.91
13.21
3.77
9.43
18.87
11.32
4.17
20.94
6.57
7.21
39 of 53
2 of 53
16 of 53
19 of 53
26.42
96.23
69.81
64.15
27.52
12.68
69.11
22.68
44.72
52.92
1.43
90.97
4.50
30 of 53
34 of 48
40 of 53
18 of 53
26 of 53
39 of 53
48 of 53
12 of 53
51 of 53
43.40
29.17
24.53
66.04
50.94
26.42
9.43
77.36
3.77
0.55
0.90
9.48
40.15
32.16
66.78
57.74
51 of 53
51 of 53
43 of 53
34 of 53
18 of 53
42 of 53
45 of 53
3.77
3.77
18.87
35.85
66.04
20.75
15.09
_________________________________________________________________________________________________________
Profitability
Return on Equity - Total (%)
Reinvestment Rate - Total (%)
Return on Assets (%)
Return on Invested Capital (%)
Cash Earnings Return On Equity (%)
Cash Flow % Sales
Cost Goods Sold / Sales (%)
Selling, General & Administrative Expense/Net Sales (%)
Operating Profit Margin (%)
Operating Inc / Total Capital (%)
Pretax Margin (%)
Net Margin (%)
Total Asset Turnover (X) th USD
Asset Utilization
Inventory Turnover (%)
Net Sales % Working Capital
Capital Expenditure % Total Assets
Capital Expenditure % Total Sales
Leverage
Total Debt % Total Capital
Long Term Debt % Total Capital
Equity % Total Capital
Total Debt % Total Assets
Common Equity % Total Assets
Total Capital % Assets
Fixed Charge Coverage Ratio
Fixed Assets % Common Equity
Working Capital % Total Capital
Liquidity
Quick Ratio
Current Ratio
Cash & Equivalents % Total Current Assets
Receivables % Total Current Assets
_________________________________________________________________________________________________________
84

Countries
Value
Rank
Percentile
USA
Turkey
Italy
Mexico
Israel
Ireland
the United Kingdom
Hong Kong
Sweden
Netherlands
Malaysia
Japan
Peru
Germany
Thailand
Switzerland
South Africa
China
Canada
Brazil
Greece
Singapore
Luxembourg
Chile
Finland
Australia
Austria
Norway
Indonesia
Czech Republic
Spain
South Korea
Argentina
Russia
France
India
Hungary
Denmark
Poland
Portugal
Taiwan
Belgium
New Zealand
Philippines
32.95
29.28
29.27
29.20
28.66
28.43
27.60
27.47
26.24
25.80
25.29
24.37
24.36
22.73
22.57
22.47
21.38
21.33
21.30
20.35
19.74
19.63
19.43
19.37
19.31
19.19
19.14
18.87
17.67
17.57
17.29
16.48
16.37
14.85
13.40
12.57
12.50
10.84
10.22
10.08
9.82
8.31
7.64
2.42
1
2
3
4
5
6
7
8
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
30
31
32
34
36
37
39
40
42
43
44
45
46
47
48
50
51
98.08
96.15
94.23
92.31
90.38
88.46
86.54
84.62
80.77
78.85
76.92
75.00
73.08
71.15
69.23
67.31
65.38
63.46
61.54
59.62
57.69
55.77
53.85
51.92
50.00
48.08
46.15
42.31
40.38
38.46
34.62
30.77
28.85
25.00
23.08
19.23
17.31
15.38
13.46
11.54
9.62
7.69
3.85
1.92
Region
_________________________________________________________________________________________________________
North America
the Middle East
Europe
Latin America
the Middle East
Europe
Europe
Asia
Europe
Europe
Asia
Asia
Latin America
Europe
Asia
Europe
Africa
Asia
North America
Latin America
Europe
Asia
Europe
Latin America
Europe
Oceana
Europe
Europe
Asia
Europe
Europe
Asia
Latin America
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Asia
Europe
Oceana
Asia
_________________________________________________________________________________________________________
85

Countries in Europe
Value
Rank
Percentile
Iceland
Vatican City
Italy
Ireland
Romania
the United Kingdom
Faroe Islands
Sweden
Netherlands
Macedonia
Serbia & Montenegro
Germany
Switzerland
Albania
Liechtenstein
Greece
Luxembourg
Finland
Austria
Monaco
San Marino
Norway
Guernsey
Jersey
Malta
Isle of Man
Czech Republic
Spain
Latvia
Croatia
Slovenia
Estonia
Belarus
Slovakia
Russia
Lithuania
France
Hungary
Ukraine
Denmark
Gibraltar
Georgia
Poland
Portugal
Cyprus
Moldova
Kazakhstan
Bulgaria
Belgium
Andorra
33.29
29.51
29.27
28.43
27.82
27.60
26.34
26.24
25.80
25.53
24.81
23.93
22.73
22.47
21.27
20.97
19.74
19.43
19.31
19.14
19.03
18.96
18.87
18.49
18.49
18.29
18.05
17.57
17.29
16.68
16.67
16.23
15.89
15.16
15.13
14.85
14.82
13.40
12.50
11.24
10.84
10.68
10.52
10.22
10.08
9.65
9.19
8.84
8.83
8.31
7.92
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________

86
Pretax Margin (%)

Countries
Value
Rank
Percentile
Brazil
Chile
Spain
Hong Kong
Greece
India
Czech Republic
Malaysia
Singapore
Indonesia
Argentina
South Africa
New Zealand
Canada
USA
Thailand
France
Italy
Netherlands
Norway
the United Kingdom
Pakistan
South Korea
China
Sweden
Russia
Finland
Germany
Austria
Switzerland
Portugal
Taiwan
Luxembourg
Belgium
Japan
Philippines
Denmark
Australia
Hungary
Peru
Poland
Ireland
Israel
Mexico
Turkey
15.44
14.69
13.06
11.91
10.76
9.67
9.58
9.47
9.21
9.11
8.92
7.87
7.25
6.56
6.43
6.27
6.02
5.99
5.76
5.73
5.72
5.45
5.07
5.04
4.74
4.57
4.34
4.29
4.15
3.43
3.39
3.35
2.97
2.46
2.14
1.83
1.39
1.30
1.29
1.25
1.05
-1.98
-1.99
-6.48
-6.50
1
2
3
4
5
6
7
8
9
10
11
14
15
16
18
19
20
21
22
23
24
25
27
28
30
32
33
34
35
36
37
38
39
40
41
42
44
45
46
47
48
49
50
52
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
73.58
71.70
69.81
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
49.06
47.17
43.40
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
16.98
15.09
13.21
11.32
9.43
7.55
5.66
1.89
0.00
Region
_________________________________________________________________________________________________________
Latin America
Latin America
Europe
Asia
Europe
Asia
Europe
Asia
Asia
Asia
Latin America
Africa
Oceana
North America
North America
Asia
Europe
Europe
Europe
Europe
Europe
the Middle East
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Asia
Asia
Europe
Oceana
Europe
Latin America
Europe
Europe
the Middle East
Latin America
the Middle East
_________________________________________________________________________________________________________
87
Pretax Margin (%)

Countries in Europe
Value
Rank
Percentile
Spain
Slovenia
Faroe Islands
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Monaco
Andorra
Iceland
Vatican City
France
Italy
Netherlands
Norway
the United Kingdom
Estonia
Sweden
Belarus
Slovakia
Russia
Lithuania
Finland
Germany
Austria
San Marino
Guernsey
Jersey
Switzerland
Portugal
Cyprus
Liechtenstein
Luxembourg
Belgium
Denmark
Hungary
Ukraine
Gibraltar
Albania
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Ireland
Serbia & Montenegro
Macedonia
Romania
13.06
12.26
11.42
10.76
9.97
9.84
9.58
9.09
9.09
8.93
7.51
6.50
6.04
6.02
5.99
5.76
5.73
5.72
4.89
4.74
4.67
4.66
4.57
4.56
4.34
4.29
4.15
4.11
4.00
4.00
3.43
3.39
3.25
3.20
2.97
2.46
1.39
1.29
1.16
1.10
1.09
1.08
1.05
0.95
0.91
0.91
-1.98
-5.31
-5.51
-5.67
-6.18
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________

88
Quick Ratio
Countries
Value
Rank
Percentile
Australia
Hong Kong
Malaysia
Israel
Ireland
Indonesia
Canada
USA
Singapore
Japan
Philippines
South Korea
Greece
Germany
Switzerland
Norway
France
Russia
Czech Republic
India
New Zealand
Thailand
Sweden
Peru
Finland
Argentina
Luxembourg
Spain
the United Kingdom
Italy
China
Netherlands
Denmark
Portugal
South Africa
Belgium
Turkey
Mexico
Austria
Taiwan
Pakistan
Hungary
Poland
Brazil
Chile
12.75
3.86
3.62
2.46
2.44
2.25
2.22
2.17
1.59
1.59
1.55
1.41
1.39
1.36
1.33
1.32
1.29
1.27
1.23
1.22
1.22
1.22
1.19
1.18
1.15
1.15
1.15
1.09
1.06
1.05
1.05
1.04
1.01
0.98
0.97
0.95
0.94
0.93
0.92
0.87
0.81
0.67
0.55
0.44
0.41
1
2
3
4
5
6
7
8
11
12
13
14
15
16
17
18
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
38
39
40
41
43
44
45
46
48
49
51
52
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
28.30
26.42
24.53
22.64
18.87
16.98
15.09
13.21
9.43
7.55
3.77
1.89
0.00
Region
_________________________________________________________________________________________________________
Oceana
Asia
Asia
the Middle East
Europe
Asia
North America
North America
Asia
Asia
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Oceana
Asia
Europe
Latin America
Europe
Latin America
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Africa
Europe
the Middle East
Latin America
Europe
Asia
the Middle East
Europe
Europe
Latin America
Latin America
_________________________________________________________________________________________________________
89
Quick Ratio
Countries in Europe
Value
Rank
Percentile
3.70
2.44
2.19
1.54
1.39
1.36
1.36
1.33
1.32
1.30
1.30
1.29
1.29
1.27
1.27
1.27
1.27
1.24
1.23
1.19
1.17
1.17
1.15
1.15
1.09
1.06
1.06
1.05
1.04
1.03
1.02
1.01
0.98
0.95
0.94
0.92
0.91
0.89
0.89
0.89
0.82
0.79
0.77
0.67
0.60
0.57
0.56
0.55
0.49
0.47
0.47
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Faroe Islands
Ireland
Iceland
Monaco
Greece
Estonia
Germany
Switzerland
Norway
Belarus
Slovakia
France
Malta
Russia
Lithuania
Isle of Man
Andorra
Liechtenstein
Czech Republic
Sweden
Latvia
Croatia
Finland
Luxembourg
Spain
Vatican City
the United Kingdom
Italy
Netherlands
Albania
Slovenia
Denmark
Portugal
Belgium
Cyprus
Austria
San Marino
Jersey
Guernsey
Romania
Macedonia
Serbia & Montenegro
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

90
Current Ratio
Countries
Value
Rank
Percentile
Australia
Hong Kong
Malaysia
Israel
Ireland
Indonesia
USA
Canada
Peru
New Zealand
Germany
Japan
Singapore
Denmark
Switzerland
Philippines
Thailand
Sweden
France
Finland
Norway
South Korea
Greece
Luxembourg
Netherlands
Russia
the United Kingdom
Italy
South Africa
India
Czech Republic
Portugal
China
Pakistan
Argentina
Spain
Austria
Belgium
Taiwan
Turkey
Mexico
Hungary
Poland
Brazil
Chile
13.84
4.39
4.29
3.49
3.46
3.24
3.18
3.02
2.88
2.39
2.34
2.22
2.15
2.07
2.04
2.04
1.98
1.97
1.93
1.92
1.91
1.91
1.84
1.77
1.74
1.72
1.70
1.69
1.67
1.67
1.64
1.59
1.58
1.57
1.53
1.43
1.40
1.36
1.28
1.11
1.11
1.10
0.90
0.89
0.85
1
2
3
4
5
6
7
9
10
11
12
14
15
16
17
18
19
20
21
22
23
24
25
26
28
30
31
32
33
34
36
37
38
39
41
43
44
45
46
47
48
49
51
52
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
83.02
81.13
79.25
77.36
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
47.17
43.40
41.51
39.62
37.74
35.85
32.08
30.19
28.30
26.42
22.64
18.87
16.98
15.09
13.21
11.32
9.43
7.55
3.77
1.89
0.00
Region
_________________________________________________________________________________________________________
Oceana
Asia
Asia
the Middle East
Europe
Asia
North America
North America
Latin America
Oceana
Europe
Asia
Asia
Europe
Europe
Asia
Asia
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Africa
Asia
Europe
Europe
Asia
the Middle East
Latin America
Europe
Europe
Europe
Asia
the Middle East
Latin America
Europe
Europe
Latin America
Latin America
_________________________________________________________________________________________________________
91
Current Ratio
Countries in Europe
Value
Rank
Percentile
4.21
3.46
3.22
2.52
2.48
2.34
2.08
2.07
2.04
1.97
1.93
1.92
1.91
1.91
1.84
1.84
1.77
1.76
1.75
1.74
1.72
1.72
1.71
1.71
1.70
1.69
1.69
1.64
1.59
1.56
1.56
1.52
1.43
1.40
1.38
1.36
1.35
1.35
1.34
1.10
1.06
0.99
0.97
0.94
0.94
0.93
0.91
0.90
0.81
0.78
0.78
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Faroe Islands
Ireland
Iceland
Albania
Andorra
Germany
Monaco
Denmark
Switzerland
Sweden
France
Finland
Norway
Liechtenstein
Greece
Estonia
Luxembourg
Belarus
Slovakia
Netherlands
Russia
Lithuania
Vatican City
Malta
the United Kingdom
Italy
Isle of Man
Czech Republic
Portugal
Latvia
Croatia
Cyprus
Spain
Austria
San Marino
Belgium
Jersey
Guernsey
Slovenia
Hungary
Romania
Ukraine
Macedonia
Gibraltar
Georgia
Serbia & Montenegro
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

92

Countries
Value
Rank
Percentile
Peru
Australia
Pakistan
New Zealand
Brazil
Denmark
Chile
South Africa
Hungary
Germany
Netherlands
Portugal
Italy
Finland
Sweden
Thailand
the United Kingdom
Poland
Austria
France
Switzerland
China
USA
Israel
Belgium
Ireland
Norway
Canada
Luxembourg
South Korea
Hong Kong
Singapore
Indonesia
Japan
India
Russia
Philippines
Spain
Greece
Czech Republic
Malaysia
Argentina
Turkey
Mexico
Taiwan
56.44
49.39
48.44
48.09
47.35
46.27
45.06
42.47
39.32
39.11
38.32
38.16
37.62
37.10
36.08
34.00
33.43
32.16
32.15
31.98
31.03
30.92
30.79
30.38
30.35
30.13
30.07
27.49
26.84
26.48
26.38
25.75
24.80
24.75
24.10
23.86
23.58
22.32
21.05
18.74
18.69
17.46
15.84
15.80
14.86
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
25
26
27
28
30
31
32
33
35
36
37
39
40
41
43
44
46
47
49
50
51
52
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
52.83
50.94
49.06
47.17
43.40
41.51
39.62
37.74
33.96
32.08
30.19
26.42
24.53
22.64
18.87
16.98
13.21
11.32
7.55
5.66
3.77
1.89
Region
_________________________________________________________________________________________________________
Latin America
Oceana
the Middle East
Oceana
Latin America
Europe
Latin America
Africa
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Asia
North America
the Middle East
Europe
Europe
Europe
North America
Europe
Asia
Asia
Asia
Asia
Asia
Asia
Europe
Asia
Europe
Europe
Europe
Asia
Latin America
the Middle East
Latin America
Asia
_________________________________________________________________________________________________________
93

Countries in Europe
Value
Rank
Percentile
Andorra
Albania
Denmark
Hungary
Germany
Netherlands
Portugal
Vatican City
Italy
Finland
Cyprus
Sweden
Ukraine
Gibraltar
the United Kingdom
Georgia
Poland
Austria
France
San Marino
Iceland
Guernsey
Jersey
Switzerland
Belgium
Ireland
Norway
Liechtenstein
Moldova
Kazakhstan
Bulgaria
Luxembourg
Estonia
Faroe Islands
Monaco
Belarus
Slovakia
Russia
Lithuania
Spain
Greece
Slovenia
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Romania
Macedonia
Serbia & Montenegro
49.80
49.26
46.27
39.32
39.11
38.32
38.16
37.92
37.62
37.10
36.53
36.08
35.36
33.62
33.43
33.10
32.16
32.15
31.98
31.84
31.11
31.05
31.05
31.03
30.35
30.13
30.07
28.96
28.91
27.82
27.77
26.84
25.52
25.30
24.97
24.36
24.30
23.86
23.80
22.32
21.05
20.96
19.51
19.25
18.74
17.79
17.78
15.05
13.81
13.42
12.95
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________

94

Countries
Value
Rank
Percentile
Turkey
Mexico
Malaysia
China
Italy
Greece
Japan
India
Spain
Israel
Ireland
Czech Republic
France
Argentina
Portugal
Peru
Austria
South Korea
Singapore
Netherlands
Switzerland
Norway
Russia
Germany
Taiwan
Denmark
Sweden
Hungary
Hong Kong
the United Kingdom
Brazil
Thailand
Canada
Finland
Luxembourg
Chile
Philippines
USA
Belgium
Poland
Australia
Indonesia
New Zealand
South Africa
Pakistan
357.98
357.00
174.24
140.37
139.34
133.01
132.06
129.31
123.36
121.19
120.18
118.41
111.00
110.30
97.52
95.11
93.62
93.59
92.69
92.30
87.80
87.10
84.34
84.28
83.15
82.99
82.85
81.65
80.25
79.96
79.39
79.18
79.10
78.40
75.93
75.53
71.26
70.09
70.01
66.78
65.78
53.09
52.84
50.69
48.79
1
2
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
44
47
48
49
51
98.11
96.23
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
16.98
11.32
9.43
7.55
3.77
Region
_________________________________________________________________________________________________________
the Middle East

Latin America
Asia
Asia
Europe
Europe
Asia
Asia
Europe
the Middle East
Europe
Europe
Europe
Latin America
Europe
Latin America
Europe
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Asia
Europe
Latin America
Asia
North America
Europe
Europe
Latin America
Asia
North America
Europe
Europe
Oceana
Asia
Oceana
Africa
the Middle East
_________________________________________________________________________________________________________
95

Countries in Europe
Value
Rank
Percentile
Romania
Macedonia
Serbia & Montenegro
Vatican City
Italy
Greece
Spain
Malta
Isle of Man
Ireland
Czech Republic
Slovenia
Latvia
Croatia
France
Portugal
Austria
Cyprus
San Marino
Netherlands
Guernsey
Jersey
Estonia
Monaco
Switzerland
Norway
Belarus
Slovakia
Russia
Germany
Lithuania
Albania
Denmark
Sweden
Liechtenstein
Hungary
the United Kingdom
Finland
Faroe Islands
Luxembourg
Ukraine
Iceland
Belgium
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Andorra
340.13
312.13
303.36
292.63
140.47
139.34
133.01
123.36
123.28
121.66
120.18
118.41
115.80
112.40
112.35
111.00
97.52
93.62
93.35
92.73
92.30
90.41
90.41
90.22
89.88
87.80
87.10
86.11
85.91
84.34
84.28
84.14
83.02
82.99
82.85
81.93
81.65
79.96
78.40
76.95
75.93
73.43
70.80
70.01
69.81
68.74
66.78
60.04
57.78
57.67
54.72
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________

96

Countries
Value
Rank
Percentile
Italy
China
Peru
Israel
Ireland
Thailand
Denmark
Netherlands
Australia
Germany
Japan
Hong Kong
Sweden
France
Brazil
USA
Malaysia
the United Kingdom
Chile
Turkey
Mexico
Finland
Switzerland
Norway
Austria
South Korea
South Africa
Luxembourg
Singapore
Russia
Hungary
Spain
New Zealand
Indonesia
Portugal
India
Pakistan
Canada
Poland
Greece
Czech Republic
Argentina
Taiwan
Belgium
Philippines
200.12
198.98
166.34
146.42
145.21
133.49
114.02
110.88
110.72
109.81
107.97
96.49
95.10
94.96
93.99
93.46
91.97
90.97
89.43
89.04
88.80
85.48
83.67
80.42
79.31
78.82
76.82
72.36
71.18
71.03
70.60
69.83
68.57
68.04
67.74
66.69
66.27
60.38
57.74
55.27
49.21
45.84
45.15
40.74
32.19
1
2
3
4
5
6
7
9
10
11
12
14
15
16
17
18
19
20
21
22
23
24
25
27
28
29
30
31
33
34
35
37
38
39
40
41
42
44
45
46
47
49
50
51
52
98.11
96.23
94.34
92.45
90.57
88.68
86.79
83.02
81.13
79.25
77.36
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
49.06
47.17
45.28
43.40
41.51
37.74
35.85
33.96
30.19
28.30
26.42
24.53
22.64
20.75
16.98
15.09
13.21
11.32
7.55
5.66
3.77
1.89
Region
_________________________________________________________________________________________________________
Europe
Asia
Latin America
the Middle East
Europe
Asia
Europe
Europe
Oceana
Europe
Asia
Asia
Europe
Europe
Latin America
North America
Asia
Europe
Latin America
the Middle East
Latin America
Europe
Europe
Europe
Europe
Asia
Africa
Europe
Asia
Europe
Europe
Europe
Oceana
Asia
Europe
Asia
the Middle East
North America
Europe
Europe
Europe
Latin America
Asia
Europe
Asia
_________________________________________________________________________________________________________
97

Countries in Europe
Value
Rank
Percentile
Vatican City
Italy
Ireland
Albania
Denmark
Netherlands
Germany
Sweden
France
Iceland
Faroe Islands
the United Kingdom
Finland
Romania
Switzerland
Norway
Austria
San Marino
Liechtenstein
Guernsey
Jersey
Estonia
Macedonia
Serbia & Montenegro
Belarus
Luxembourg
Slovakia
Russia
Andorra
Lithuania
Hungary
Spain
Monaco
Portugal
Slovenia
Cyprus
Ukraine
Gibraltar
Georgia
Poland
Greece
Moldova
Malta
Isle of Man
Kazakhstan
Bulgaria
Czech Republic
Latvia
Croatia
Belgium
201.74
200.12
145.21
145.20
114.02
110.88
109.81
95.10
94.96
94.42
92.53
90.97
85.48
84.60
83.67
80.42
79.31
78.56
78.08
77.64
76.60
76.60
75.99
75.45
72.79
72.52
72.36
72.36
71.03
71.01
70.86
70.60
69.83
69.02
67.74
65.56
64.84
63.49
60.37
59.44
57.74
55.27
51.92
51.23
50.55
49.96
49.87
49.21
46.71
46.69
40.74
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________

3.6
3.6.1
98
PRODUCTIVITY IN POLAND: ASSET-LABOR RATIOS

Overview
In this chapter, we consider numerous asset-labor ratios for steam, gas and hydraulic turbines and turbine generator
set units in Poland benchmarked against global averages. Productivity and utilization ratios are presented for
companies oprating in Poland and the average global benchmarks for steam, gas and hydraulic turbines and turbine
generator set units. For ratios where there are large deviations between Poland and the benchmarks, graphics are
provided (sometimes referred to as a gap analysis). Then the distribution of ratios is presented in the form of ranks
and percentiles. Certain asset-labor ratios are highlighted across countries in the comparison group.
In the case of asset-labor ratios, this report maintains comparability over time and across countries by using a
common currency (the US dollar) and relates each measure to a per employee basis. Ratios are projected using
raw financial statistics and, as ratios, are therefore comparable. Given a countrys human resource ratios, the
resulting figures are benchmarked across regional and global averages.
We then report the larger asset-labor ratio gaps for steam, gas and hydraulic turbines and turbine generator set units
that Poland has vis--vis the worldwide average. Again, a gap need not be a bad sign. Rather, it is simply a
substantial difference that might merit further attention or signal a firms relative incentive to invest locally. All
figures are projections, so due caution is required.
3.6.2
Asset to Labor: Outlook
The following tables and graphs are prepared using the methodology described at the beginning of this section. All
units are in thousands of US dollars per employee. All figures are current-year projections for steam, gas and
hydraulic turbines and turbine generator set units in Poland based on latest financial results available.
Labor-asset Ratios ($k/employee)
Poland
Europe World Avg.
_________________________________________________________________________________________________________

Receivables (Net)
Total Inventories
Other Assets
Total Assets
2.01
8.50
6.81
17.33
27.12
0.15
0.15
44.60
19.81
80.12
37.20
140.04
45.86
11.38
8.54
244.38
21.26
46.74
23.18
93.95
31.94
6.15
3.80
162.19
_________________________________________________________________________________________________________
3.6.3
99
Asset to Labor: International Gaps
labor-asset gaps between firms operating in Poland and the world average. A gap cannot necessarily be interpreted as
a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise.
More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that
are large.
Gap: Cash & Short Term Investments ($k/employee)

30
19.81
20
10
21.26
2.01
0
-10
-19.25
Gap
-20
Poland
Europe
World Average
Gap: Receivables (Net) ($k/employee)

100
80
60
40
20
0
-20
-40
80.12
46.74
8.5
Poland
Europe
-38.24
Gap
World Average
Gap: Total Inventories ($k/employee)

37.2
40
30
20
10
23.18
6.81
0
-10
-16.37
-20
Poland
Europe
World Average
Gap
100
Gap: Current Assets - Total ($k/employee)

140.04
150
93.95
100
50
17.33
0
-50
-76.62
-100
Poland
Europe
World Average
Gap
Gap: Property Plant and Equipment - Net ($k/employee)

45.86
50
40
30
31.94
27.12
20
10
0
-4.82
-10
Poland
Europe
World Average
Gap
Gap: Other Assets ($k/employee)

15
11.38
10
5
0
6.15
0.15
-5
-6
-10
Poland
Europe
World Average
Gap
Gap: Intangible Other Assets ($k/employee)

8.54
10
3.8
5
0
0.15
-3.65
-5
Poland
Europe
World Average
Gap
101
Gap: Total Assets ($k/employee)

300
244.38
162.19
200
44.6
100
0
-100
-117.59
-200
Poland
Europe
World Average
Gap
3.6.4
102
We now consider the distribution of asset-labor ratios using ranks and percentiles across . What percent of countries
have a productivity indicator lower or higher than Poland (what is the indicator's rank or percentile)? The table below
answers this question with respect to asset-labor structure. The ranks and percentiles indicate, from highest to
lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of
countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not
necessarily indicate good or bad performance or productivity. After the summary table below, a few key asset-labor
ratios are highlighted in additional tables.
Asset Structure ($k/employee)
Poland
Rank of Total
Percentile
2.01
8.50
6.81
17.33
27.12
0.15
0.15
44.60
48 of 53
45 of 53
46 of 53
50 of 53
31 of 53
51 of 53
40 of 43
46 of 53
9.43
15.09
13.21
5.66
41.51
3.77
6.98
13.21
_________________________________________________________________________________________________________

Receivables (Net)
Total Inventories
Other Assets
Total Assets
_________________________________________________________________________________________________________
103

Countries
Value ($K/employee)
Rank
Percentile
75.14
70.27
66.82
65.96
59.44
53.76
51.33
50.91
45.09
41.62
31.76
30.89
25.36
25.22
23.91
23.54
23.26
22.10
21.82
21.32
21.29
20.61
19.83
18.87
15.55
14.68
13.42
12.33
10.82
10.73
8.87
8.08
7.34
6.19
6.17
5.53
3.39
3.31
2.47
2.46
2.01
1.75
1.06
0.46
0.44
1
2
3
4
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
29
30
31
32
34
35
37
38
39
41
42
43
46
47
48
49
51
52
53
98.11
96.23
94.34
92.45
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
45.28
43.40
41.51
39.62
35.85
33.96
30.19
28.30
26.42
22.64
20.75
18.87
13.21
11.32
9.43
7.55
3.77
1.89
0.00
Region
_________________________________________________________________________________________________________
Taiwan
Australia
USA
South Korea
Russia
Japan
Israel
Ireland
Norway
China
Canada
Hong Kong
Singapore
France
Greece
Italy
Germany
Finland
Switzerland
South Africa
Czech Republic
the United Kingdom
Argentina
Luxembourg
Spain
Belgium
Malaysia
Sweden
Indonesia
Austria
Pakistan
Denmark
Netherlands
Turkey
Mexico
India
Peru
Thailand
New Zealand
Hungary
Poland
Philippines
Portugal
Brazil
Chile
Asia
Oceana
North America
Asia
Europe
Asia
the Middle East
Europe
Europe
Asia
North America
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Africa
Europe
Europe
Latin America
Europe
Europe
Europe
Asia
Europe
Asia
Europe
the Middle East
Europe
Europe
the Middle East
Latin America
Asia
Latin America
Asia
Oceana
Europe
Europe
Asia
Europe
Latin America
Latin America
_________________________________________________________________________________________________________
104

Countries in Europe
Value ($K/employee)
Rank
Percentile
67.50
63.59
60.69
60.55
59.44
59.30
50.91
45.09
29.62
25.22
24.59
23.91
23.73
23.54
23.26
22.16
22.10
21.87
21.82
21.29
20.61
20.37
20.21
20.20
18.87
15.55
14.68
14.60
12.33
10.73
10.63
10.36
10.36
8.08
7.34
5.88
5.39
5.24
5.06
2.96
2.56
2.46
2.21
2.10
2.07
2.01
1.81
1.74
1.73
1.06
1.01
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Iceland
Estonia
Belarus
Slovakia
Russia
Lithuania
Ireland
Norway
Faroe Islands
France
Monaco
Greece
Vatican City
Italy
Germany
Malta
Finland
Isle of Man
Switzerland
Czech Republic
the United Kingdom
Liechtenstein
Latvia
Croatia
Luxembourg
Spain
Belgium
Slovenia
Sweden
Austria
San Marino
Guernsey
Jersey
Denmark
Netherlands
Romania
Macedonia
Serbia & Montenegro
Albania
Andorra
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Portugal
Cyprus
_________________________________________________________________________________________________________

105
Receivables (Net)
Countries
Value ($K/employee)
Rank
Percentile
468.24
466.96
178.16
125.28
102.56
99.19
92.42
90.46
77.51
69.00
64.27
63.99
61.36
59.42
57.06
53.96
53.58
53.51
49.54
45.46
44.90
41.38
41.25
40.51
39.32
39.14
38.94
31.36
31.27
30.96
28.85
27.96
26.99
26.67
23.89
23.42
21.95
17.22
15.96
15.18
10.40
8.53
8.50
7.31
5.60
1
2
4
5
6
7
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
50
98.11
96.23
92.45
90.57
88.68
86.79
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
5.66
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
Portugal
South Korea
Italy
Russia
Japan
Greece
Czech Republic
Argentina
France
Norway
Germany
Netherlands
Israel
Spain
Ireland
Denmark
Switzerland
Austria
USA
Sweden
Malaysia
Luxembourg
Finland
Belgium
South Africa
the United Kingdom
Singapore
Hong Kong
Canada
Peru
China
Pakistan
India
New Zealand
Australia
Brazil
Chile
Hungary
Thailand
Poland
Indonesia
Philippines
the Middle East

Latin America
Asia
Europe
Asia
Europe
Europe
Asia
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
the Middle East
Europe
Europe
Europe
Europe
Europe
North America
Europe
Asia
Europe
Europe
Europe
Africa
Europe
Asia
Asia
North America
Latin America
Asia
the Middle East
Asia
Oceana
Oceana
Latin America
Latin America
Europe
Asia
Europe
Asia
Asia
_________________________________________________________________________________________________________
106
Receivables (Net)
Countries in Europe
Value ($K/employee)
Rank
Percentile
444.89
408.27
396.79
382.76
125.28
119.92
99.99
99.19
98.87
94.37
94.15
92.42
92.21
77.51
71.83
70.89
69.00
65.49
65.46
63.99
61.36
59.42
57.06
53.58
53.51
50.30
49.54
45.46
44.90
44.47
43.36
43.36
42.42
41.80
41.25
39.32
39.14
38.94
31.27
30.02
27.66
23.56
22.73
10.40
9.35
8.89
8.75
8.50
7.65
7.36
7.35
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Portugal
Cyprus
Vatican City
Italy
Estonia
Belarus
Slovakia
Russia
Lithuania
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
France
Norway
Germany
Netherlands
Spain
Ireland
Slovenia
Denmark
Switzerland
Austria
San Marino
Guernsey
Jersey
Liechtenstein
Iceland
Sweden
Luxembourg
Finland
Belgium
the United Kingdom
Monaco
Faroe Islands
Albania
Andorra
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

107
Total Inventories
Countries
Value ($K/employee)
Rank
Percentile
89.29
89.04
80.46
78.14
77.12
69.50
63.82
53.05
49.54
45.66
41.73
41.73
39.46
39.14
38.80
38.38
36.62
34.00
31.28
30.97
30.78
30.56
27.27
27.05
26.11
25.85
23.91
23.43
23.25
22.96
21.66
20.54
20.40
19.71
18.28
15.90
15.35
15.13
10.77
8.33
8.03
7.95
6.81
6.20
2.28
1
2
4
5
6
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
39
40
41
42
43
44
45
46
49
52
98.11
96.23
92.45
90.57
88.68
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
7.55
1.89
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Italy
Portugal
South Korea
Russia
Taiwan
Denmark
Japan
France
Netherlands
Germany
Israel
Ireland
Norway
South Africa
Peru
Finland
Switzerland
Pakistan
Sweden
USA
Austria
Luxembourg
Greece
Australia
Belgium
China
Czech Republic
New Zealand
Argentina
the United Kingdom
Singapore
Canada
Spain
Brazil
Hong Kong
Chile
Malaysia
Hungary
Thailand
India
Poland
Indonesia
Philippines
the Middle East

Latin America
Europe
Europe
Asia
Europe
Asia
Europe
Asia
Europe
Europe
Europe
the Middle East
Europe
Europe
Africa
Latin America
Europe
Europe
the Middle East
Europe
North America
Europe
Europe
Europe
Oceana
Europe
Asia
Europe
Oceana
Latin America
Europe
Asia
North America
Europe
Latin America
Asia
Latin America
Asia
Europe
Asia
Asia
Europe
Asia
Asia
_________________________________________________________________________________________________________
108
Total Inventories
Countries in Europe
Value ($K/employee)
Rank
Percentile
84.84
81.11
80.46
78.14
77.85
75.66
74.80
74.35
72.99
70.96
70.80
69.50
69.33
53.05
45.66
41.73
41.73
39.14
38.80
34.00
31.96
31.28
30.88
30.78
29.19
27.27
27.05
27.01
26.33
26.33
26.11
24.20
23.91
23.88
23.78
23.25
22.07
22.06
20.54
19.78
18.28
17.16
14.72
8.33
7.49
7.12
7.01
6.81
6.12
5.89
5.88
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Vatican City
Italy
Portugal
Macedonia
Cyprus
Estonia
Serbia & Montenegro
Belarus
Slovakia
Russia
Lithuania
Denmark
France
Netherlands
Germany
Ireland
Norway
Finland
Albania
Switzerland
Iceland
Sweden
Liechtenstein
Austria
Luxembourg
San Marino
Jersey
Guernsey
Greece
Malta
Belgium
Isle of Man
Andorra
Czech Republic
Latvia
Croatia
the United Kingdom
Monaco
Spain
Slovenia
Faroe Islands
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

109

Countries
Value ($K/employee)
Rank
Percentile
563.71
562.18
355.71
251.30
226.46
207.87
204.76
203.78
149.02
147.79
147.63
147.02
137.06
136.69
131.62
121.69
116.22
113.35
109.84
107.82
103.26
98.25
95.65
91.09
89.30
87.67
86.83
84.74
84.64
77.72
77.53
75.30
75.23
67.61
64.85
63.92
47.75
37.98
33.59
31.96
25.65
21.87
21.18
17.33
9.67
1
2
4
5
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
40
41
42
43
44
46
47
50
52
98.11
96.23
92.45
90.57
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
22.64
20.75
18.87
16.98
13.21
11.32
5.66
1.89
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
South Korea
Russia
Italy
Portugal
Japan
Israel
Ireland
USA
Norway
France
Greece
Germany
Czech Republic
Denmark
Argentina
Australia
Netherlands
Switzerland
Finland
China
South Africa
Luxembourg
Spain
Sweden
Austria
Canada
Singapore
Belgium
the United Kingdom
Hong Kong
Peru
Malaysia
Pakistan
New Zealand
India
Brazil
Chile
Indonesia
Thailand
Hungary
Poland
Philippines
the Middle East

Latin America
Asia
Asia
Europe
Europe
Europe
Asia
the Middle East
Europe
North America
Europe
Europe
Europe
Europe
Europe
Europe
Latin America
Oceana
Europe
Europe
Europe
Asia
Africa
Europe
Europe
Europe
Europe
North America
Asia
Europe
Europe
Asia
Latin America
Asia
the Middle East
Oceana
Asia
Latin America
Latin America
Asia
Asia
Europe
Europe
Asia
_________________________________________________________________________________________________________
110

Countries in Europe
Value ($K/employee)
Rank
Percentile
535.60
491.52
477.70
460.80
242.26
231.22
230.69
226.46
225.93
209.55
207.87
204.76
196.00
149.14
147.79
147.02
137.06
136.69
131.62
126.69
125.02
121.69
116.22
115.50
115.45
107.82
103.26
98.25
96.36
89.30
87.67
86.83
84.74
83.94
82.31
81.84
81.84
77.53
75.37
75.30
72.14
59.02
49.45
21.18
19.05
18.11
17.83
17.33
15.58
14.99
14.96
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Vatican City
Italy
Portugal
Cyprus
Iceland
Ireland
Norway
France
Greece
Germany
Malta
Isle of Man
Czech Republic
Denmark
Latvia
Croatia
Netherlands
Switzerland
Finland
Liechtenstein
Luxembourg
Spain
Sweden
Austria
San Marino
Slovenia
Guernsey
Jersey
Belgium
Monaco
the United Kingdom
Faroe Islands
Albania
Andorra
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

111

Countries
Value ($K/employee)
Rank
Percentile
149.59
128.39
115.70
81.21
70.98
70.79
66.34
59.06
55.39
55.01
54.74
47.34
44.97
43.98
41.51
40.65
40.57
38.07
37.53
35.70
35.49
34.02
33.99
33.16
33.00
31.76
29.73
27.12
26.54
26.10
25.25
24.71
22.51
20.39
18.60
16.22
14.54
14.19
13.41
13.30
11.91
10.38
9.13
6.58
6.27
1
2
4
5
6
7
8
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
27
28
29
30
31
32
33
34
35
36
37
38
40
42
43
44
46
47
48
50
51
52
98.11
96.23
92.45
90.57
88.68
86.79
84.91
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
20.75
18.87
16.98
13.21
11.32
9.43
5.66
3.77
1.89
Region
_________________________________________________________________________________________________________
Taiwan
South Korea
Russia
Japan
Turkey
Mexico
Greece
Czech Republic
Portugal
Argentina
Switzerland
Luxembourg
China
Germany
Australia
Malaysia
Netherlands
Austria
USA
Canada
Finland
Denmark
Sweden
Hungary
Norway
Italy
Singapore
Poland
Brazil
the United Kingdom
Chile
New Zealand
Peru
Thailand
France
Spain
Hong Kong
Indonesia
Israel
Ireland
Belgium
India
Pakistan
Philippines
South Africa
Asia
Asia
Europe
Asia
the Middle East
Latin America
Europe
Europe
Europe
Latin America
Europe
Europe
Asia
Europe
Oceana
Asia
Europe
Europe
North America
North America
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Latin America
Europe
Latin America
Oceana
Latin America
Asia
Europe
Europe
Asia
Asia
the Middle East
Europe
Europe
Asia
the Middle East
Asia
Africa
_________________________________________________________________________________________________________
112

Countries in Europe
Value ($K/employee)
Rank
Percentile
123.77
118.13
117.86
115.70
115.43
67.44
66.34
61.89
61.48
60.68
60.15
59.06
58.02
56.06
56.03
55.39
54.74
53.02
51.08
47.34
43.98
40.57
38.07
37.92
37.71
36.76
36.76
35.49
34.02
33.99
33.16
33.00
32.02
31.76
29.82
28.83
28.36
27.92
27.12
26.10
25.59
24.39
23.47
23.42
19.65
18.60
16.22
15.23
13.94
13.30
11.91
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Estonia
Belarus
Slovakia
Russia
Lithuania
Romania
Greece
Malta
Isle of Man
Macedonia
Czech Republic
Serbia & Montenegro
Latvia
Croatia
Portugal
Switzerland
Cyprus
Liechtenstein
Luxembourg
Germany
Netherlands
Austria
Iceland
San Marino
Jersey
Guernsey
Finland
Denmark
Sweden
Hungary
Norway
Vatican City
Italy
Ukraine
Monaco
Gibraltar
Georgia
Poland
the United Kingdom
Andorra
Moldova
Kazakhstan
Bulgaria
Albania
France
Spain
Slovenia
Faroe Islands
Ireland
Belgium
_________________________________________________________________________________________________________

113

Countries
Value ($K/employee)
Rank
Percentile
48.49
29.65
29.55
19.59
18.57
18.47
16.88
15.30
15.07
14.60
14.10
13.21
12.49
10.50
8.82
8.76
7.26
6.46
6.02
5.84
5.81
5.80
5.76
5.22
4.27
3.87
3.86
3.77
3.23
2.97
2.83
2.35
0.68
0.57
0.46
0.18
0.15
0.12
1
2
3
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
26
27
28
29
30
32
33
34
35
36
37
38
39
40
41
97.67
95.35
93.02
88.37
86.05
83.72
81.40
79.07
76.74
74.42
72.09
69.77
67.44
65.12
62.79
60.47
58.14
55.81
53.49
51.16
48.84
46.51
44.19
39.53
37.21
34.88
32.56
30.23
25.58
23.26
20.93
18.60
16.28
13.95
11.63
9.30
6.98
4.65
Region
_________________________________________________________________________________________________________
Belgium
USA
Norway
France
Italy
Canada
Switzerland
Malaysia
Sweden
Luxembourg
Austria
Germany
Finland
Australia
Denmark
the United Kingdom
Greece
Czech Republic
Argentina
New Zealand
Israel
South Korea
Ireland
Russia
Singapore
Turkey
Mexico
Hong Kong
Netherlands
Japan
Spain
China
Peru
South Africa
India
Hungary
Poland
Thailand
Europe
North America
Europe
Europe
Europe
North America
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Oceana
Europe
Europe
Europe
Europe
Latin America
Oceana
the Middle East
Asia
Europe
Europe
Asia
the Middle East
Latin America
Asia
Europe
Asia
Europe
Asia
Latin America
Africa
Asia
Europe
Europe
Asia
_________________________________________________________________________________________________________
114

Countries in Europe
Value ($K/employee)
Rank
Percentile
48.49
29.96
29.55
19.59
18.72
18.57
16.88
15.75
15.07
14.60
14.10
13.97
13.62
13.62
13.21
12.49
8.82
8.76
7.26
6.73
6.64
6.46
6.13
6.13
6.05
5.76
5.59
5.33
5.32
5.22
5.21
4.14
3.67
3.61
3.37
3.28
3.23
3.16
2.83
2.65
0.59
0.18
0.16
0.16
0.15
0.15
0.13
0.13
0.13
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
97.96
95.92
93.88
91.84
89.80
87.76
85.71
83.67
81.63
79.59
77.55
75.51
73.47
71.43
69.39
67.35
65.31
63.27
61.22
59.18
57.14
55.10
53.06
51.02
48.98
46.94
44.90
42.86
40.82
38.78
36.73
34.69
32.65
30.61
28.57
26.53
24.49
22.45
20.41
18.37
16.33
14.29
12.24
10.20
8.16
6.12
4.08
2.04
0.00
_________________________________________________________________________________________________________
Belgium
Iceland
Norway
France
Vatican City
Italy
Switzerland
Liechtenstein
Sweden
Luxembourg
Austria
San Marino
Jersey
Guernsey
Germany
Finland
Denmark
the United Kingdom
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Andorra
Ireland
Estonia
Belarus
Slovakia
Russia
Lithuania
Monaco
Romania
Faroe Islands
Macedonia
Netherlands
Serbia & Montenegro
Spain
Slovenia
Albania
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________
3.7
3.7.1
115
PRODUCTIVITY IN POLAND: LIABILITY-LABOR RATIOS

Overview
In this chapter we consider the liability-labor ratios of companies operating in Poland benchmarked against global
averages for steam, gas and hydraulic turbines and turbine generator set units. For ratios where there are large
deviations between Poland and the benchmarks, graphics are provided (sometimes referred to as a gap analysis).
Then the distribution of productivity ratios is presented in the form of ranks and percentiles. Certain key liabilitylabor ratios are highlighted for steam, gas and hydraulic turbines and turbine generator set units across countries in
the comparison group. Definitions of liability statement terms are given in Chapter 3.
In the case of liability-labor ratios, this report maintains comparability over time and across countries by using a
I then report the larger liability-labor ratio gaps for steam, gas and hydraulic turbines and turbine generator set units
that Poland has vis--vis the worldwide average. Again, a gap need not be a bad sign. Rather, it is simply a
3.7.2
Liability to Labor: Outlook
Labor-liability Ratios ($k/employee)
Poland
Europe World Avg.
_________________________________________________________________________________________________________
Accounts Payable
Long Term Debt
Total Liabilities
Common Equity
4.00
7.89
3.85
15.74
4.47
4.47
20.21
24.39
11.10
11.30
44.60
27.47
35.70
30.01
97.10
27.04
26.83
131.49
108.59
10.89
13.79
244.38
17.12
22.43
19.46
63.27
12.60
12.51
78.99
79.02
5.85
11.20
162.19
_________________________________________________________________________________________________________
3.7.3
116
Liability and Equity to Labor: International Gaps
labor-liability gaps between firms operating in Poland and the world average. A gap cannot necessarily be interpreted
as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or
expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are
simply those that are large.
Gap: Accounts Payable ($k/employee)

27.47
30
17.12
20
10
0
-10
-13.12
-20
Poland
Europe
World Average
Gap
Gap: Short Term Debt & Current Portion of Long Term Debt ($k/employee)
35.7
40
30
20
10
22.43
7.89
0
-10
-14.54
-20
Poland
Europe
World Average
Gap
Gap: Other Current Liabilities ($k/employee)

40
30.01
30
19.46
20
10
3.85
0
-10
-15.61
-20
Poland
Europe
World Average
Gap
117
Gap: Current Liabilities - Total ($k/employee)

97.1
100
63.27
50
15.74
0
-47.53
Gap
-50
Poland
Europe
World Average
Gap: Long Term Debt ($k/employee)

27.04
30
20
10
12.6
4.47
0
-8.13
-10
Poland
Europe
World Average
Gap
Gap: Long Term Debt Excluding Capitalized Leases ($k/employee)

26.83
30
20
10
12.51
4.47
0
-8.04
-10
Poland
Europe
World Average
Gap
Gap: Total Liabilities ($k/employee)

131.49
150
78.99
100
50
20.21
0
-50
-58.78
-100
Poland
Europe
World Average
Gap
118
Gap: Common Equity ($k/employee)

150
108.59
79.02
100
50
24.39
0
-50
-54.63
-100
Poland
Europe
World Average
Gap
Gap: Other Appropriated Reserves ($k/employee)

12
11.1
10.89
10
8
5.85
5.25
4
2
0
Poland
Europe
World Average
Gap
Gap: Unappropriated Reserves ($k/employee)

13.79
15
11.3
11.2
10
5
0.1
0
Poland
Europe
World Average
Gap
Gap: Total Liabilities & Shareholders Equity ($k/employee)

300
244.38
162.19
200
44.6
100
0
-100
-117.59
-200
Poland
Europe
World Average
Gap
3.7.4
119
We now consider the distribution of liability-labor ratios using ranks and percentiles across . What percent of
countries have a value lower or higher than Poland (what is the indicator's rank or percentile)? The table below
answers this question with respect to liability-labor ratios. The ranks and percentiles indicate, from highest to lowest,
where a value falls within the distribution of all countries considered in the global benchmark (the number of
countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not
necessarily indicate good or bad performance or productivity. After the summary table below, a few key liabilitylabor ratios are highlighted in additional tables.
Liability Structure ($k/employee)
Poland
Rank of Total
Percentile
4.00
7.89
3.85
15.74
4.47
4.47
20.21
24.39
11.10
11.30
44.60
44 of 50
35 of 53
45 of 53
45 of 53
38 of 48
37 of 48
45 of 53
46 of 53
15 of 49
15 of 37
46 of 53
12.00
33.96
15.09
15.09
20.83
22.92
15.09
13.21
69.39
59.46
13.21
_________________________________________________________________________________________________________
Accounts Payable
Long Term Debt
Total Liabilities
Common Equity
_________________________________________________________________________________________________________
120
Accounts Payable
Countries
Value ($K/employee)
Rank
Percentile
87.40
87.02
86.79
71.13
57.18
52.99
51.53
41.59
32.27
30.19
25.93
25.15
25.00
23.85
22.39
21.64
21.11
20.86
19.28
18.81
18.61
18.34
16.74
16.67
15.82
15.07
13.03
12.19
11.82
11.64
11.56
11.47
11.24
11.22
10.99
8.68
4.89
4.58
4.36
4.00
3.36
1.00
1
2
3
5
6
7
9
10
11
12
13
14
15
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
44
47
50
98.00
96.00
94.00
90.00
88.00
86.00
82.00
80.00
78.00
76.00
74.00
72.00
70.00
66.00
64.00
62.00
60.00
58.00
56.00
54.00
52.00
50.00
48.00
46.00
44.00
42.00
40.00
38.00
36.00
34.00
32.00
30.00
28.00
26.00
24.00
22.00
20.00
18.00
16.00
12.00
6.00
0.00
Region
_________________________________________________________________________________________________________
Taiwan
Turkey
Mexico
Italy
South Korea
Japan
Russia
Belgium
France
Norway
Denmark
Greece
Spain
Netherlands
Czech Republic
Sweden
Singapore
Argentina
Switzerland
Germany
Hong Kong
USA
Canada
Luxembourg
Austria
the United Kingdom
Finland
China
Brazil
New Zealand
Israel
Ireland
Chile
India
Australia
Malaysia
Hungary
Indonesia
Thailand
Poland
Philippines
Peru
Asia
the Middle East
Latin America
Europe
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Latin America
Europe
Europe
Asia
North America
North America
Europe
Europe
Europe
Europe
Asia
Latin America
Oceana
the Middle East
Europe
Latin America
Asia
Oceana
Asia
Europe
Asia
Asia
Europe
Asia
Latin America
_________________________________________________________________________________________________________
121
Accounts Payable
Countries in Europe
Value ($K/employee)
Rank
Percentile
82.68
75.88
73.74
71.71
71.14
71.13
55.12
52.61
52.49
51.53
51.41
41.59
32.27
30.19
25.93
25.15
25.00
23.85
23.47
23.31
23.00
22.39
21.64
21.25
21.24
20.47
19.28
18.81
18.53
17.99
17.84
16.67
15.82
15.67
15.28
15.28
15.07
13.03
12.05
11.47
4.89
4.40
4.18
4.12
4.00
3.59
3.46
3.45
0.87
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
97.96
95.92
93.88
91.84
89.80
87.76
85.71
83.67
81.63
79.59
77.55
75.51
73.47
71.43
69.39
67.35
65.31
63.27
61.22
59.18
57.14
55.10
53.06
51.02
48.98
46.94
44.90
42.86
40.82
38.78
36.73
34.69
32.65
30.61
28.57
26.53
24.49
22.45
20.41
18.37
16.33
14.29
12.24
10.20
8.16
6.12
4.08
2.04
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Vatican City
Serbia & Montenegro
Italy
Estonia
Belarus
Slovakia
Russia
Lithuania
Belgium
France
Norway
Denmark
Greece
Spain
Netherlands
Slovenia
Malta
Isle of Man
Czech Republic
Sweden
Latvia
Croatia
Monaco
Switzerland
Germany
Iceland
Liechtenstein
Faroe Islands
Luxembourg
Austria
San Marino
Guernsey
Jersey
the United Kingdom
Finland
Andorra
Ireland
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Albania
_________________________________________________________________________________________________________
122

Countries
Value ($K/employee)
Rank
Percentile
506.75
505.36
226.98
166.02
149.61
141.55
129.00
118.68
87.93
82.29
77.84
73.25
72.19
68.24
65.14
63.90
63.87
61.93
61.10
57.37
57.14
55.81
53.70
51.60
50.72
49.41
48.51
42.51
42.16
40.61
38.86
37.71
37.66
35.84
31.31
30.41
29.23
25.11
21.73
19.95
19.24
15.74
12.06
9.20
4.74
1
2
4
5
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
38
39
40
41
42
43
44
45
46
49
52
98.11
96.23
92.45
90.57
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
28.30
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
7.55
1.89
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
South Korea
Russia
Italy
Portugal
Japan
Norway
Greece
France
Czech Republic
Denmark
Argentina
China
Spain
Germany
Netherlands
Austria
Belgium
Switzerland
South Africa
Finland
Sweden
USA
Luxembourg
the United Kingdom
Israel
Ireland
Pakistan
Singapore
Hong Kong
Brazil
Chile
Canada
Malaysia
Peru
Australia
India
New Zealand
Hungary
Poland
Thailand
Indonesia
Philippines
the Middle East

Latin America
Asia
Asia
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Latin America
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Africa
Europe
Europe
North America
Europe
Europe
the Middle East
Europe
the Middle East
Asia
Asia
Latin America
Latin America
North America
Asia
Latin America
Oceana
Asia
Oceana
Europe
Europe
Asia
Asia
Asia
_________________________________________________________________________________________________________
123

Countries in Europe
Value ($K/employee)
Rank
Percentile
481.48
441.85
429.42
414.23
160.05
152.76
152.41
149.61
149.26
142.70
141.55
129.00
123.49
87.93
82.29
77.84
76.27
75.26
73.25
72.19
69.53
69.50
63.90
63.87
61.93
61.10
60.52
59.98
59.00
59.00
57.37
57.14
53.70
53.32
51.60
51.24
49.41
48.51
42.16
37.69
36.16
25.52
20.66
19.24
17.31
16.45
16.20
15.74
14.15
13.62
13.59
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Vatican City
Italy
Portugal
Cyprus
Norway
Greece
France
Malta
Isle of Man
Czech Republic
Denmark
Latvia
Croatia
Spain
Germany
Netherlands
Austria
San Marino
Slovenia
Jersey
Guernsey
Belgium
Switzerland
Finland
Liechtenstein
Sweden
Iceland
Luxembourg
the United Kingdom
Ireland
Monaco
Faroe Islands
Albania
Andorra
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

124
Long Term Debt

Countries
Value ($K/employee)
Rank
Percentile
131.37
131.02
93.29
51.38
42.58
38.37
32.88
31.75
29.79
27.66
27.47
26.88
26.22
25.89
25.76
25.46
21.50
21.03
18.72
17.44
16.90
16.06
15.56
14.71
14.38
11.39
9.59
8.36
7.00
5.47
5.36
4.50
4.47
4.22
4.19
3.52
3.29
3.26
3.01
2.10
1.07
1
2
4
5
6
8
9
10
11
12
13
14
15
16
17
18
19
20
22
23
24
25
26
27
28
29
30
31
32
34
36
37
38
39
40
41
42
43
44
45
48
97.92
95.83
91.67
89.58
87.50
83.33
81.25
79.17
77.08
75.00
72.92
70.83
68.75
66.67
64.58
62.50
60.42
58.33
54.17
52.08
50.00
47.92
45.83
43.75
41.67
39.58
37.50
35.42
33.33
29.17
25.00
22.92
20.83
18.75
16.67
14.58
12.50
10.42
8.33
6.25
0.00
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
Portugal
South Korea
Russia
Belgium
Norway
Switzerland
Netherlands
New Zealand
USA
Japan
Sweden
Luxembourg
Finland
Italy
Greece
Czech Republic
Argentina
Denmark
Austria
France
Germany
Canada
Australia
the United Kingdom
Spain
Thailand
Hungary
South Africa
Singapore
Poland
Israel
Ireland
Malaysia
Hong Kong
China
India
Indonesia
Peru
the Middle East

Latin America
Asia
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Oceana
North America
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
North America
Oceana
Europe
Europe
Asia
Europe
Africa
Asia
Europe
the Middle East
Europe
Asia
Asia
Asia
Asia
Asia
Latin America
_________________________________________________________________________________________________________
125
Long Term Debt

Countries in Europe
Value ($K/employee)
Rank
Percentile
124.82
114.55
111.33
107.39
51.38
49.18
41.05
39.18
39.09
38.37
38.28
32.88
31.75
29.79
28.45
27.80
27.66
27.15
25.89
25.76
25.46
21.67
21.50
21.03
19.49
19.23
18.72
17.77
17.76
16.90
16.06
15.90
15.56
15.51
15.51
14.71
9.59
8.36
7.85
5.47
4.92
4.68
4.60
4.47
4.36
4.19
4.02
3.87
3.86
3.15
0.94
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Portugal
Cyprus
Estonia
Belarus
Slovakia
Russia
Lithuania
Belgium
Norway
Switzerland
Andorra
Liechtenstein
Netherlands
Iceland
Sweden
Luxembourg
Finland
Vatican City
Italy
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Denmark
Austria
San Marino
France
Guernsey
Jersey
Germany
the United Kingdom
Spain
Slovenia
Hungary
Ukraine
Gibraltar
Georgia
Poland
Monaco
Ireland
Moldova
Kazakhstan
Bulgaria
Faroe Islands
Albania
_________________________________________________________________________________________________________

126
Total Liabilities
Countries
Value ($K/employee)
Rank
Percentile
645.86
644.10
320.58
219.98
198.23
181.11
180.80
159.41
123.30
120.24
104.91
102.02
100.53
100.09
99.65
98.31
97.45
93.39
90.99
87.00
86.46
86.18
83.27
72.79
68.71
64.07
60.67
53.22
52.78
49.13
47.95
44.43
41.53
41.27
39.67
37.74
37.64
36.21
31.56
25.72
24.71
20.21
19.36
11.90
4.74
1
2
4
5
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
49
52
98.11
96.23
92.45
90.57
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
7.55
1.89
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
South Korea
Russia
Italy
Portugal
Japan
Germany
Norway
Greece
France
Denmark
Austria
Switzerland
Belgium
Netherlands
Czech Republic
Sweden
Argentina
USA
Luxembourg
Finland
Spain
China
the United Kingdom
South Africa
Israel
Ireland
Canada
New Zealand
Singapore
Hong Kong
Pakistan
Brazil
Chile
Australia
Malaysia
Peru
India
Hungary
Poland
Thailand
Indonesia
Philippines
the Middle East

Latin America
Asia
Asia
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Latin America
North America
Europe
Europe
Europe
Asia
Europe
Africa
the Middle East
Europe
North America
Oceana
Asia
Asia
the Middle East
Latin America
Latin America
Oceana
Asia
Latin America
Asia
Europe
Europe
Asia
Asia
Asia
_________________________________________________________________________________________________________
127
Total Liabilities
Countries in Europe
Value ($K/employee)
Rank
Percentile
613.66
563.15
547.31
527.95
212.07
202.40
201.94
198.23
197.77
182.57
181.11
180.80
173.07
123.30
120.24
104.91
102.02
100.53
100.09
99.65
99.14
98.31
97.45
97.23
96.66
96.66
95.95
93.39
92.98
90.99
88.65
88.61
87.35
86.18
83.27
72.79
68.33
64.07
52.78
49.66
43.08
39.82
27.55
24.71
22.22
21.13
20.80
20.21
18.17
17.49
17.46
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Vatican City
Italy
Portugal
Cyprus
Germany
Norway
Greece
France
Denmark
Austria
Switzerland
San Marino
Belgium
Netherlands
Malta
Jersey
Guernsey
Isle of Man
Czech Republic
Liechtenstein
Sweden
Latvia
Croatia
Iceland
Luxembourg
Finland
Spain
Slovenia
the United Kingdom
Ireland
Andorra
Monaco
Faroe Islands
Albania
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

128
Common Equity
Countries
Value ($K/employee)
Rank
Percentile
594.71
593.09
283.20
188.26
169.65
158.60
138.81
128.58
127.52
124.76
95.17
94.48
88.58
86.69
86.29
85.33
84.11
82.29
79.71
78.35
77.17
71.16
69.51
68.57
67.27
66.78
63.47
60.03
59.93
52.54
51.16
49.32
46.42
42.59
36.53
34.91
33.55
31.09
29.82
27.55
25.21
24.39
21.42
20.38
11.54
1
2
4
5
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
38
39
40
41
42
44
45
46
48
50
52
98.11
96.23
92.45
90.57
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
28.30
26.42
24.53
22.64
20.75
16.98
15.09
13.21
9.43
5.66
1.89
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
South Korea
Russia
Japan
USA
Israel
Ireland
Australia
Norway
Greece
Malaysia
Canada
Italy
Portugal
Czech Republic
Switzerland
China
Argentina
France
Luxembourg
Germany
Singapore
Finland
Hong Kong
Denmark
Netherlands
Peru
Sweden
Belgium
the United Kingdom
Austria
South Africa
Pakistan
New Zealand
Spain
Indonesia
Hungary
India
Thailand
Poland
Brazil
Chile
Philippines
the Middle East

Latin America
Asia
Asia
Europe
Asia
North America
the Middle East
Europe
Oceana
Europe
Europe
Asia
North America
Europe
Europe
Europe
Europe
Asia
Latin America
Europe
Europe
Europe
Asia
Europe
Asia
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
Africa
the Middle East
Oceana
Europe
Asia
Europe
Asia
Asia
Europe
Latin America
Latin America
Asia
_________________________________________________________________________________________________________
129
Common Equity
Countries in Europe
Value ($K/employee)
Rank
Percentile
565.06
518.55
503.97
486.14
181.49
173.22
172.82
169.65
169.25
140.23
127.52
95.17
94.48
87.57
86.99
86.41
86.29
85.33
84.11
82.29
81.68
79.83
79.80
77.17
76.78
71.16
69.51
67.27
66.50
64.03
63.47
60.03
52.54
52.31
51.16
49.32
46.42
45.98
44.83
44.83
36.16
33.55
31.50
29.82
26.81
25.49
25.10
24.39
21.92
21.10
21.06
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Iceland
Ireland
Norway
Greece
Malta
Vatican City
Isle of Man
Italy
Portugal
Czech Republic
Switzerland
Cyprus
Latvia
Croatia
France
Liechtenstein
Luxembourg
Germany
Finland
Monaco
Faroe Islands
Denmark
Netherlands
Sweden
Albania
Belgium
the United Kingdom
Austria
San Marino
Jersey
Guernsey
Andorra
Spain
Slovenia
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

3.8
3.8.1
130
PRODUCTIVITY IN POLAND: INCOME-LABOR RATIOS

Overview
In this chapter we consider the income-labor ratios for steam, gas and hydraulic turbines and turbine generator set
units in Poland benchmarked against global averages. For ratios where there are large deviations between the
average firm operating in Poland and the benchmarks, graphics are provided (sometimes referred to as a gap
analysis). Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key income-labor
ratios are highlighted across countries in the comparison group.
In the case of income-labor ratios, this report maintains comparability over time and across countries by using a
We then report the larger income-labor ratio gaps for steam, gas and hydraulic turbines and turbine generator set
units that Poland has vis--vis the worldwide average. Again, a gap need not be a bad sign. Rather, it is simply a
3.8.2
Income to Labor: Outlook
Labor-income Ratios ($k/employee)
Poland
Europe World Avg.
_________________________________________________________________________________________________________

Gross Income
Operating Income
Pretax Income
40.62
32.08
3.47
5.08
4.23
0.86
0.36
1.22
0.70
0.52
0.52
0.52
0.52
198.08
151.12
8.63
39.60
27.93
13.28
1.20
23.43
16.42
7.04
4.00
4.02
3.99
128.08
93.24
5.06
25.62
15.38
9.69
1.13
15.79
9.49
6.36
3.98
4.14
3.98
_________________________________________________________________________________________________________
3.8.3
131
Income to Labor: Gaps
labor-income gaps between firms operating in Poland and the world average. A gap cannot necessarily be interpreted
as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or
expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are
simply those that are large.
Gap: Net Sales or Revenues ($k/employee)

198.08
200
128.08
150
100
50
40.62
0
-50
-87.46
-100
Poland
Europe
World Average
Gap
Gap: Cost of Goods Sold (Excluding Depreciation) ($k/employee)

200
151.12
150
93.24
100
50
32.08
0
-50
-61.16
-100
Poland
Europe
World Average
Gap
Gap: Gross Income ($k/employee)

39.6
40
20
25.62
5.08
0
-20
-20.54
-40
Poland
Europe
World Average
Gap
132
Gap: Selling, General & Administrative Expenses ($k/employee)

27.93
30
15.38
20
10
4.23
0
-10
-11.15
-20
Poland
Europe
World Average
Gap
Gap: Operating Income ($k/employee)

13.28
15
9.69
10
5
0.86
0
-5
-8.83
-10
Poland
Europe
World Average
Gap
Gap: Earnings Before Interest and Taxes (EBIT) ($k/employee)

30
23.43
15.79
20
10
1.22
0
-10
-14.57
-20
Poland
Europe
World Average
Gap
Gap: Interest Expense on Debt ($k/employee)

20
16.42
15
9.49
10
5
0.7
0
-5
-8.79
-10
Poland
Europe
World Average
Gap
133
Gap: Pretax Income ($k/employee)

10
7.04
6.36
5
0.52
0
-5
-5.84
-10
Poland
Europe
World Average
Gap
Gap: Net Income Before Extra Items/Prefer Dividends ($k/employee)

4
4
2
3.98
0.52
0
-2
-3.46
-4
Poland
Europe
World Average
Gap
Gap: Net Income Before Preferred Dividends ($k/employee)

6
4.02
4
2
4.14
0.52
0
-2
-3.62
-4
Poland
Europe
World Average
Gap
Gap: Net Income Available to Common ($k/employee)

3.99
4
2
3.98
0.52
0
-2
-3.46
-4
Poland
Europe
World Average
Gap
3.8.4
134
We now consider the distribution of income-labor ratios using ranks and percentiles across . What percent of
countries have a value lower or higher than Poland (what is the ratio's rank or percentile)? The table below answers
this question with respect to income-labor ratios. The ranks and percentiles indicate, from highest to lowest, where a
value falls within the distribution of all countries considered in the global benchmark (the number of countries in the
benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily
indicate good or bad performance or productivity. After the summary table below, a few key income-labor ratios are
highlighted in additional tables.
Income Structure ($k/employee)
Poland
Rank of Total
Percentile
40.62
32.08
3.47
5.08
4.23
0.86
0.36
1.22
0.70
0.52
0.52
0.52
0.52
48 of 53
49 of 52
41 of 53
49 of 52
39 of 46
47 of 53
33 of 53
49 of 53
42 of 53
48 of 53
47 of 53
47 of 53
47 of 53
9.43
5.77
22.64
5.77
15.22
11.32
37.74
7.55
20.75
9.43
11.32
11.32
11.32
_________________________________________________________________________________________________________

Gross Income
Operating Income
Pretax Income
_________________________________________________________________________________________________________
135

Countries
Value ($K/employee)
Rank
Percentile
853.22
388.78
306.09
298.54
297.72
275.82
226.16
205.13
195.15
192.75
183.90
181.64
173.87
166.87
154.77
148.01
147.81
144.11
142.21
138.02
130.19
125.85
122.99
121.96
117.95
113.63
108.57
106.86
101.13
100.45
99.62
97.70
90.30
90.09
85.39
58.03
47.81
45.74
45.49
44.83
39.22
37.34
33.69
32.08
1
2
3
4
5
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
39
40
41
42
43
45
46
47
49
98.08
96.15
94.23
92.31
90.38
84.62
82.69
80.77
78.85
76.92
75.00
73.08
71.15
69.23
67.31
65.38
63.46
61.54
59.62
57.69
55.77
53.85
51.92
50.00
48.08
46.15
44.23
42.31
40.38
38.46
36.54
34.62
32.69
30.77
28.85
25.00
23.08
21.15
19.23
17.31
13.46
11.54
9.62
5.77
Region
_________________________________________________________________________________________________________
Taiwan
Portugal
South Korea
Turkey
Mexico
Russia
South Africa
Belgium
Japan
Norway
Australia
Italy
France
Denmark
Singapore
Germany
Sweden
Finland
Switzerland
USA
Austria
Peru
Luxembourg
Greece
Netherlands
New Zealand
Czech Republic
Spain
Argentina
Israel
Ireland
the United Kingdom
Canada
Hong Kong
China
Malaysia
Brazil
India
Chile
Indonesia
Hungary
Thailand
Philippines
Poland
Asia
Europe
Asia
the Middle East
Latin America
Europe
Africa
Europe
Asia
Europe
Oceana
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
North America
Europe
Latin America
Europe
Europe
Europe
Oceana
Europe
Europe
Latin America
the Middle East
Europe
Europe
North America
Asia
Asia
Asia
Latin America
Asia
Latin America
Asia
Europe
Asia
Asia
Europe
_________________________________________________________________________________________________________
136

Countries in Europe
Value ($K/employee)
Rank
Percentile
388.78
372.15
295.08
283.65
281.63
280.98
275.82
275.18
260.30
252.98
244.04
205.13
192.75
183.11
181.64
173.87
166.87
150.08
148.01
147.81
144.11
142.21
139.43
132.71
130.19
128.96
125.73
125.73
122.99
121.96
117.95
117.67
113.03
111.55
109.86
108.57
106.86
103.05
103.01
100.32
99.62
97.70
86.39
39.22
35.27
33.53
33.02
32.08
28.84
27.75
27.70
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Portugal
Cyprus
Estonia
Romania
Belarus
Slovakia
Russia
Lithuania
Macedonia
Serbia & Montenegro
Belgium
Norway
Vatican City
Italy
France
Denmark
Monaco
Germany
Sweden
Finland
Switzerland
Iceland
Liechtenstein
Austria
San Marino
Guernsey
Jersey
Luxembourg
Greece
Netherlands
Andorra
Malta
Isle of Man
Albania
Czech Republic
Spain
Latvia
Croatia
Slovenia
Ireland
the United Kingdom
Faroe Islands
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

137

Countries
Value ($K/employee)
Rank
Percentile
85.31
85.08
80.20
60.93
55.92
50.19
46.12
43.04
42.68
37.87
35.50
34.27
33.88
33.19
32.31
30.88
30.70
26.55
26.43
26.40
26.26
20.61
20.42
19.08
17.66
17.22
16.99
15.82
15.22
12.28
10.88
9.72
5.47
5.21
5.17
4.25
4.23
3.31
0.34
1
2
3
5
6
7
8
9
10
11
12
13
14
15
16
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
41
45
97.83
95.65
93.48
89.13
86.96
84.78
82.61
80.43
78.26
76.09
73.91
71.74
69.57
67.39
65.22
60.87
58.70
56.52
54.35
52.17
50.00
47.83
45.65
43.48
41.30
39.13
36.96
34.78
32.61
30.43
28.26
26.09
23.91
21.74
19.57
17.39
15.22
10.87
2.17
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
Netherlands
USA
Japan
Italy
Israel
Ireland
Norway
Sweden
South Korea
Finland
the United Kingdom
Germany
Russia
Switzerland
Luxembourg
South Africa
France
Australia
Denmark
Canada
Greece
Austria
Hong Kong
Czech Republic
Argentina
China
Peru
Malaysia
Singapore
Brazil
Chile
Hungary
Thailand
Poland
Indonesia
Philippines
the Middle East

Latin America
Asia
Europe
North America
Asia
Europe
the Middle East
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Africa
Europe
Oceana
Europe
North America
Europe
Europe
Asia
Europe
Latin America
Asia
Latin America
Asia
Asia
Latin America
Latin America
Europe
Asia
Europe
Asia
Asia
_________________________________________________________________________________________________________
138

Countries in Europe
Value ($K/employee)
Rank
Percentile
81.05
74.38
72.29
69.73
60.93
56.49
46.50
46.12
42.68
37.87
35.50
33.88
33.19
33.03
32.31
31.53
31.46
30.88
30.81
30.70
28.65
26.55
26.40
20.61
19.08
17.68
17.66
17.49
17.45
17.05
17.05
16.99
16.51
16.12
16.12
10.72
9.42
5.17
4.65
4.42
4.35
4.23
3.80
3.66
3.65
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
97.78
95.56
93.33
91.11
88.89
86.67
84.44
82.22
80.00
77.78
75.56
73.33
71.11
68.89
66.67
64.44
62.22
60.00
57.78
55.56
53.33
51.11
48.89
46.67
44.44
42.22
40.00
37.78
35.56
33.33
31.11
28.89
26.67
24.44
22.22
20.00
17.78
15.56
13.33
11.11
8.89
6.67
4.44
2.22
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Netherlands
Iceland
Vatican City
Italy
Ireland
Norway
Sweden
Finland
the United Kingdom
Estonia
Germany
Belarus
Slovakia
Russia
Lithuania
Switzerland
Liechtenstein
Luxembourg
France
Denmark
Greece
Malta
Austria
San Marino
Isle of Man
Guernsey
Jersey
Czech Republic
Faroe Islands
Latvia
Croatia
Albania
Monaco
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________
139
Operating Income
Countries
Value ($K/employee)
Rank
Percentile
52.50
52.36
28.13
25.37
25.35
22.09
18.71
17.95
17.23
16.36
15.88
14.98
13.40
12.72
11.93
11.74
11.12
11.08
10.83
10.17
10.16
9.79
9.52
8.80
8.67
8.61
8.13
7.79
7.71
7.41
7.34
6.99
6.76
6.41
6.24
5.37
3.63
2.69
1.05
0.86
0.56
0.54
-2.21
-3.72
-3.75
1
2
4
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
40
42
46
47
48
49
51
52
53
98.11
96.23
92.45
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
20.75
13.21
11.32
9.43
7.55
3.77
1.89
0.00
Region
_________________________________________________________________________________________________________
Turkey
Mexico
South Korea
Taiwan
Russia
Netherlands
South Africa
USA
Spain
Portugal
Norway
Italy
Greece
France
Czech Republic
Pakistan
Argentina
Belgium
Canada
Japan
Singapore
New Zealand
the United Kingdom
Hong Kong
China
Finland
Sweden
Malaysia
Brazil
Switzerland
Chile
Germany
Austria
Luxembourg
Denmark
India
Indonesia
Thailand
Hungary
Poland
Philippines
Australia
Peru
Ireland
Israel
the Middle East

Latin America
Asia
Asia
Europe
Europe
Africa
North America
Europe
Europe
Europe
Europe
Europe
Europe
Europe
the Middle East
Latin America
Europe
North America
Asia
Asia
Oceana
Europe
Asia
Asia
Europe
Europe
Asia
Latin America
Europe
Latin America
Europe
Europe
Europe
Europe
Asia
Asia
Asia
Europe
Europe
Asia
Oceana
Latin America
Europe
the Middle East
_________________________________________________________________________________________________________
140
Operating Income
Countries in Europe
Value ($K/employee)
Rank
Percentile
49.88
45.78
44.49
42.92
27.12
25.88
25.82
25.35
25.29
22.09
18.13
17.23
16.36
16.18
15.88
15.66
15.10
14.98
13.40
12.72
12.42
12.26
11.93
11.33
11.32
11.08
10.14
9.86
9.52
8.61
8.44
8.13
7.41
6.99
6.91
6.76
6.69
6.53
6.53
6.41
6.24
1.05
0.95
0.90
0.89
0.86
0.77
0.75
0.74
-1.93
-3.72
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Netherlands
Iceland
Spain
Portugal
Slovenia
Norway
Cyprus
Vatican City
Italy
Greece
France
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Belgium
Andorra
Monaco
the United Kingdom
Finland
Faroe Islands
Sweden
Switzerland
Germany
Liechtenstein
Austria
San Marino
Jersey
Guernsey
Luxembourg
Denmark
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Albania
Ireland
_________________________________________________________________________________________________________

141

Countries
Value ($K/employee)
Rank
Percentile
169.22
168.76
44.85
29.31
26.41
22.51
21.53
20.45
20.42
20.00
19.28
18.96
18.18
17.73
17.18
16.94
16.87
15.00
13.89
12.62
11.63
11.41
11.29
10.92
10.22
9.79
9.78
9.76
9.74
9.68
9.46
9.18
8.30
8.18
7.52
6.98
6.55
3.48
3.28
2.97
1.49
1.22
0.76
-2.68
-2.70
1
2
4
5
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
36
37
38
39
40
41
42
43
48
49
50
52
53
98.11
96.23
92.45
90.57
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
32.08
30.19
28.30
26.42
24.53
22.64
20.75
18.87
9.43
7.55
5.66
1.89
0.00
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
South Korea
Russia
Netherlands
Portugal
Norway
Greece
USA
Italy
South Africa
Czech Republic
Brazil
Spain
Argentina
Chile
France
Germany
Finland
New Zealand
Pakistan
Canada
Australia
Singapore
the United Kingdom
Austria
Sweden
Hong Kong
China
Switzerland
Malaysia
Belgium
Luxembourg
Japan
India
Denmark
Thailand
Peru
Indonesia
Hungary
Poland
Philippines
Ireland
Israel
the Middle East

Latin America
Asia
Asia
Europe
Europe
Europe
Europe
Europe
North America
Europe
Africa
Europe
Latin America
Europe
Latin America
Latin America
Europe
Europe
Europe
Oceana
the Middle East
North America
Oceana
Asia
Europe
Europe
Europe
Asia
Asia
Europe
Asia
Europe
Europe
Asia
Asia
Europe
Asia
Latin America
Asia
Europe
Europe
Asia
Europe
the Middle East
_________________________________________________________________________________________________________
142

Countries in Europe
Value ($K/employee)
Rank
Percentile
160.78
147.55
143.40
138.33
28.26
26.97
26.91
26.41
26.35
22.51
21.53
20.61
20.45
20.42
20.20
19.44
19.28
18.93
18.68
18.18
17.26
17.25
17.18
16.13
15.00
13.89
12.62
12.04
9.91
9.79
9.78
9.76
9.68
9.46
9.44
9.44
9.34
8.82
8.30
8.18
6.55
2.86
1.49
1.34
1.27
1.25
1.22
1.10
1.05
1.05
-2.68
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Netherlands
Portugal
Cyprus
Norway
Greece
Iceland
Vatican City
Italy
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Spain
Slovenia
France
Germany
Finland
Andorra
Monaco
the United Kingdom
Austria
Sweden
San Marino
Switzerland
Jersey
Guernsey
Faroe Islands
Liechtenstein
Belgium
Luxembourg
Denmark
Albania
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Ireland
_________________________________________________________________________________________________________

143
Pretax Income
Countries
Value ($K/employee)
Rank
Percentile
34.08
20.39
18.65
18.38
18.09
17.50
16.49
16.47
16.31
14.94
14.68
14.61
13.67
12.10
11.65
10.11
10.09
9.70
9.60
9.54
9.32
9.29
8.98
8.57
8.40
8.23
8.23
7.64
7.12
6.72
6.35
6.26
6.16
6.04
3.35
3.00
2.39
1.24
0.68
0.64
0.52
-3.20
-3.23
-30.51
-30.60
1
2
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
30
31
32
33
34
35
36
37
38
40
44
45
46
48
49
50
52
53
98.11
96.23
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
16.98
15.09
13.21
9.43
7.55
5.66
1.89
0.00
Region
_________________________________________________________________________________________________________
Taiwan
South Korea
Netherlands
Russia
USA
Norway
Greece
South Africa
Spain
Portugal
Czech Republic
Italy
Argentina
France
Germany
Canada
Brazil
Finland
Chile
Singapore
Pakistan
New Zealand
the United Kingdom
Australia
Hong Kong
Malaysia
China
Austria
Switzerland
Sweden
Belgium
India
Luxembourg
Japan
Denmark
Thailand
Indonesia
Peru
Philippines
Hungary
Poland
Ireland
Israel
Mexico
Turkey
Asia
Asia
Europe
Europe
North America
Europe
Europe
Africa
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
North America
Latin America
Europe
Latin America
Asia
the Middle East
Oceana
Europe
Oceana
Asia
Asia
Asia
Europe
Europe
Europe
Europe
Asia
Europe
Asia
Europe
Asia
Asia
Latin America
Asia
Europe
Europe
Europe
the Middle East
Latin America
the Middle East
_________________________________________________________________________________________________________
144
Pretax Income
Countries in Europe
Value ($K/employee)
Rank
Percentile
19.66
18.76
18.72
18.65
18.38
18.33
18.28
17.50
16.49
16.31
15.31
15.28
15.08
14.94
14.73
14.68
14.61
14.30
13.93
13.93
12.10
11.65
9.70
9.62
9.25
8.98
8.06
7.64
7.57
7.38
7.38
7.12
6.72
6.64
6.35
6.16
3.35
1.08
0.64
0.58
0.55
0.54
0.52
0.47
0.45
0.45
-3.20
-25.01
-25.93
-26.68
-29.07
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Estonia
Belarus
Slovakia
Netherlands
Russia
Lithuania
Iceland
Norway
Greece
Spain
Slovenia
Malta
Isle of Man
Portugal
Vatican City
Czech Republic
Italy
Cyprus
Latvia
Croatia
France
Germany
Finland
Andorra
Monaco
the United Kingdom
Faroe Islands
Austria
San Marino
Guernsey
Jersey
Switzerland
Sweden
Liechtenstein
Belgium
Luxembourg
Denmark
Albania
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Ireland
Serbia & Montenegro
Macedonia
Romania
_________________________________________________________________________________________________________

145
4
4.1
MACRO-ACCESSIBILITY IN POLAND
EXECUTIVE SUMMARY
Poland became a member of the European Union on May 1, 2004. Poland joined NATO in 1999 and has become a
close ally to the United States. Industrial cooperation between the United States and Poland in defense industries,
including aviation and high technology, are resulting from increased U.S. interest. The U.S. and Polish governments
are encouraging closer economic and commercial ties.
With 39 million people, Poland accounts for half of the population and nearly half of the economic output of the tencountries comprising the EU enlargement zone. For Poland, EU membership means furthering the structural
transformation of the economy, and harmonization of its administrative and regulatory systems with those of Acquis
Communitaire.
Polands transportation, communications, banking, insurance and distribution systems are still in various stages of
development. While communication and banking systems are advanced, the highway system still requires huge
investments. The government controls about 30 percent of economic activity, and faces the challenge to privatize
remaining state-owned interests in sectors such as coal, steel and rail transport.
Opportunities for U.S. firms exist across a broad spectrum of sectors. National defense, high technology, data
systems, telecommunications, environmental equipment and services are among best prospects. U.S. goods and
services enjoy a very good reputation in the market. The American Chamber of Commerce in Poland now has more
than 300 members.
4.2
ECONOMIC FUNDAMENTALS AND DYNAMICS
Poland was one of the leaders of the economic transformation of Central and Eastern Europe in the 1990s, reflecting
its early adoption of an aggressive program of market-oriented reforms (shock therapy) following the fall of
communism in 1989.
4.2.1
Government Intervention Risks
Poland has made remarkable progress in transforming itself into a private-sector-led market economy. However, a
frequent complaint of business executives operating in Poland, both foreign and domestic, is the sluggishness,
inconsistency, and unpredictability of regulatory decision-making.
Taxes in Poland have been relatively high, particularly for a country at its income level. The constitution prohibits
the government from borrowing from the central bank. The constitution also mandates that public debt cannot
exceed 60 percent of GDP.
4.2.2
Balance of Payments Issues
The rapid expansion of domestic demand in the latter half of the 1990s, combined with the Russian financial crisis of
1998, led to a worrisome deterioration in Polands external finances. Poland greatly benefits from the 1991 Paris
Club and the 1994 London Club debt-rescheduling agreements, which roughly cut in half Polands foreign debt. In
1995, Poland paid back all IMF drawings.
Macro-Accessibility
4.2.3
146
Infrastructure Development
Communications, banking, insurance, accounting, and distribution systems are still developing in Poland.
Communications services are adequate. Domestic long-distance service is open to competition; in January 2003,
TPSAs monopoly on international service was ended. Internet usage is low compared to U.S. and Western
European levels, but increasing rapidly. The high cost of telecommunications services, coupled with the continued
dominant position of TPSA, have slowed the introduction of new services, including e-commerce. Cellular phone
usage is high and service reliable.
Companies establishing branch offices find office space and housing relatively expensive. Foreign companies can
acquire small parcels of land without obtaining government permission, but the government has moved slowly in
granting permits to acquire large parcels and some companies have complained there still are unnecessary delays in
acquiring small parcels. There is a shortage of personnel with training and experience in some fields, particularly in
finance, marketing, and human resources.
The banking system is relatively well developed and well regulated. Foreign-owned banks control over 80 percent of
the banking sectors equity. Banks set their own lending and deposit rates.
Polands road system is poor. The number of cars on the roads is more than double that of 1990, but highway
construction has not kept pace. There is especially a lack of adequate highways between major cities capable of
carrying the increased volume of trucks necessary for the growth of Polands distribution systems. Rural road travel
is particularly difficult and very dangerous at night.
Polands air and seaports are structurally adequate for receiving and shipping cargo. All are in need of expansion
and modernization to facilitate the growth of Polands economy. The existing rail network in Poland is extensive.
4.2.4
Regional Economic Integration
Poland became a full member of the EU on May 1, 2004. Despite the major reorientation of the economy reflected
in EU accession, Poland has maintained strong trade ties with Russia and the countries to the east.
4.2.5
Economic Relationship with the United States
Every post-1989 Polish government has been a strong supporter of a continued American military and economic
presence in Europe, and has identified active participation in NATO since joining in 1999 and accession to the
European Union as Polands principal foreign policy priorities. Poland cooperates closely with the United States on
such issues as nuclear non-proliferation, human rights, regional cooperation in Central and Eastern Europe, and
reform of the United Nations. Poland served successfully as the Chairman in Office of the Organization for Security
and Cooperation in Europe (OSCE) in 1998 and chaired the Community of Democracies Initiative (CDI) and hosted
CDIs first conference in Warsaw in 2000.
From 1989 until the closure of U.S.AIDs Polish program in 2000, Poland was the largest recipient of U.S. assistance
to Central and Eastern Europe. Since 1989, the U.S. has committed more than USD 4 billion to such areas as debt
reduction, privatization, financial stabilization, financial institution building, entrepreneurial training, support for a
free press and other democratic institutions, and efforts to improve Polands environment. Until its closeout in 2001,
the Peace Corps program in Poland was one of the worlds largest.
Polands close cooperation with the United States is reflected in the large number of high-level visits exchanged
between the two countries in recent years.
Macro-Accessibility
4.3
147
POLITICAL RISKS
Leaders of Polands major political parties have repeatedly expressed strong public support for foreign and
specifically U.S. investment. Substantial foreign direct investment is considered essential to Polands achieving its
overarching goal of raising the standard of living to the levels of Western Europe. A particularly sensitive issue for
many Poles, for historic reasons, is the EU-mandated liberalization of the sale of land to all EU citizens. Although
all of Polands major political parties at one time or another have exhibited some reservations about allowing
foreigners to acquire dominant positions in strategic firms
As for trade issues, political parties support for reducing tariff and non-tariff trade barriers varies from the avowedly
open-market stance of the Civic Platform (PO) to the generally protectionist position of PSL and the extremist parties
of the left and right. However, overall, Poland has lowered trade barriers in accordance with its international
obligations to WTO.
Trade unions are also an element for foreign business to consider. The Polish trade union movement, the engine of
the social movement that precipitated communisms collapse in the 1980s, has occasionally been problematic for
foreign investors, particularly when managers of newly privatized state enterprises have instituted management
changes. Resistance has also come from often-bloated middle management in such enterprises. But considering the
growth and magnitude of U.S. investment, few American investors have encountered significant difficulties with
Polish unions.
4.3.1
Relations between National and Provincial Leaders
Polands January 1, 1999 administrative reform divided the country into 16 provinces (wojewodztwo) headed by
governors (wojewoda) appointed by the Prime Minister. Provinces are subdivided into counties (powiat) at the
intermediate level, and into municipalities (gmina) at the local level. Every four years the Poles elect local
assemblies (Sejmik) at the provincial and county level. Each Sejmik is headed by a Marshall.
Local government manages public finances, health care, schools, social welfare assistance, and police. It also
functions as the owner of local public assets including unutilized land. Local government is financed largely from
the state budget, but also draws a small portion of its revenue from local taxes and fees, which according to the
constitution it has the right to determine.
4.3.2
The Political System
Poland is a parliamentary democracy. The Constitution adopted in 1997 enhances several key elements of
democracy including judicial review and the legislative process, while continuing to guarantee the wide range of civil
rights, such as the right to free speech, press, and assembly that Poles have enjoyed since 1989.
Poland has a bicameral Parliament, comprised of a Lower House (Sejm) and Upper House (Senate). Within the
legislative branch of the government, the Sejm has preeminent power. The Senates authority is limited to amending
or delaying legislation passed by the Sejm. Both bodies are elected simultaneously. Elections to the Sejm are
proportionate from multi-member districts ranging in size from seven to nineteen deputies. Elections to the Senate
are by plurality, from two- to -four-member districts.
The Polish President is the commander-in-chief of the armed forces and may veto legislation passed by the
Parliament. According to the new Constitution, Presidential vetoes can be overturned by a three-fifths vote in the
Sejm.
Macro-Accessibility
148
Orientation of Major Political Parties

The Polish political parties are described below. They are commonly referred to by the Polish acronyms given in
parentheses.
Democratic Left Alliance (SLD). The left-of-center SLD is comprised mostly of successor parties to the
communist-era Polish United Workers Party (PZPR). The partys leadership generally supports liberal
economic policies but stresses the importance of cushioning the harsher effects of economic reform.
Civic Platform (PO): Center-right grouping established in January 2001 by three influential politicians: Maciej
Plazynski, former Marshal of the Sejm (left PO in May 2003), Donald Tusk, former Vice Marshal of the Senate,
and Andrzej Olechowski, former Minister of Finance and Foreign Affairs. PO advocates flat taxes, Americanstyle parliamentary elections in single-member districts, and direct election of local government executives.
Law and Justice (PiS): Established in June 2001 from elements of the then ruling Solidarity Electoral Action
(AWS). Rightist, first led by popular former Minister of Justice Lech Kaczynski. Stresses law and order and a
strong and just society.
Polish Peasant Party (PSL): Headed by former Deputy Prime Minister Jaroslaw Kalinowski. Communist-era
supporter of the Communist regime. After 1989 the PSL announced a return to its pre-1945 agrarian centrist
tradition. The PSL highlights its declared mission of protecting Polands small family farmers, but its senior
leaders include a number of agribusinessmen.
League of Polish Families (LPR): Far-right, strongly nationalistic Catholic party (established in June 2001).
Staunchly anti-Communist radicals with affinity to the Catholic Radio Maryja and its associated newspaper,
Nasz Dziennik. Strongly opposed to Polish membership in EU and sale of Polish real estate to foreigners.
Self-Defense (SO): Radical populist party. SO organizes street protests and media stunts to highlight a variety
of social concerns.
Union of Labor (UP): Bills itself as an ideologically pure social-democratic party advocating a broad social
safety net. It is the smallest of the major parties in Poland.
Conservative-Peasant Alliance (SKL): Originally established in January 1997.
4.4
MARKETING STRATEGIES
Opportunities for doing business in Poland are, like the population, dispersed throughout the country. Twenty-five
percent of the population resides in rural areas, and urban dwellers are widely spread among a number of population
centers.
Macro-Accessibility
149
The largest Polish cities include:
4.4.1
CITY
POPULATION
Warsaw
Lodz
Krakow
Wroclaw
Poznan
Gdansk
Szczecin
Bydgoszcz
Lublin
1,632,500
812,300
740,500
639,400
580,000
461,300
419,000
386,300
356,000
Distribution Channel Options
Consumer Goods Distribution

Competition in the consumer goods sector, particularly non-durable consumer goods, is intense in Poland. The
previously insatiable demand for western goods has been replaced by more pragmatic attitudes about price and
quality. Polish consumers and importers are selective about the products they buy. Locally made brands have
improved immensely in quality. Brand name recognition is still important, but it is sometimes a challenge for U.S.
firms to develop brand images and loyalty, as the market has been introduced to hundreds of new western and Polish
brands.
Despite the expansion of international chains of supermarkets, hypermarkets and large specialty stores, the retail
market in Poland continues to be fragmented. Many small local independent retail shop owners are losing business
to the large international chains and therefore protest establishment of new large stores. Smaller shops are also
joining merchants associations to petition authorities to preserve small, independent Polish retailing. In 2000, 11
Polish retail networks founded the Union of Polish Retail Networks (UPDS), an organization with nationwide
coverage. Despite the fact that the organization unites retail business owners, it intends to cooperate with Polish
wholesalers. Small companies continue to dominate the Polish retail market. Ninety-eight percent of retail
companies own no more than two outlets. The wholesale market is also fragmented. Ten foreign wholesale
companies produce 70% of total wholesale sales.
The number of hypermarkets is expanding rapidly in Poland. The top ten retailers in Poland are foreign, and include
such chains as Macro, Geant Casino, Auchan, Jeronimo Martins, IKEA, Carrefour, HIT, Castorama, OBI, Leclerc,
and Tesco. Twenty four percent of Poles do their shopping in hypermarkets, 45% in small stores, 20% in
miscellaneous, and 9% in discount stores. According to survey data 52% of customers shopping in the large-scale
retail outlets cite the wide range of products as an attraction, 44% believe prices are lower, 25% are attracted by
promotions and discounts, 23%note convenience, and 19% seek the hands-on experience.
More than ten western hypermarket and supermarket chains operate in the food retail market. All large supermarket
chains doing business in Poland report aggressive plans for expansion over the next two years. Foreign retail chains
invest not only in hypermarkets but also in smaller, discount store types of retail chains situated near customers
homes or work places. There is a considerable amount of development in specialty and do-it-yourself (DIY) retail
chains. The fastest growing chains are OBI, IKEA, Euro-net, Media Markt, Stinnes, Castorama, Praktiker, Nomi,
Leroy Merlin and Bricomarche. The major local DIY chain is Komfort (with about 100 outlets).
Macro-Accessibility
150
Currently there is growing activity in constructing large shopping centers (shopping malls). Companies including
Globe Trade Center, ING Real Estate, ECC, TK Development, Apsys, Cefic and Metro are the most active in
Poland. Globe Trade Center was the investor in Warsaws Galeria Mokotow, the first integrated shopping and
entertainment center in Poland (it has 60,000 sq meter of retail space and 240 stores). Large shopping centers are
also located in other locations in Poland. The most important feature of a successful shopping center is a proper and
functional selection of stores, in terms of goods range and prices.
There are over 50 foreign retail clothing chains in Poland. The rapid growth of these chains is a result of the
expansion of shopping malls. Very popular are Part Two, Carly Gray (Cottonfield, Jackpot, Inwear), Olsen, Cubus,
KappAhl, Claire, Max Mara, Deni Cler, Morgan, and Benneton. Well-known foreign apparel brands have been
introduced into Poland by two companies, Ultimate Fashion (Esprit, River Island, Wallis, Celio) and Young Fashion
(Zara).
Most large retail chains offer customers credit cards. Usually the cards involve participation in loyalty programs.
Although credit cards are becoming a major means of payment and most shops now accept them for payment, Poland
is still largely a cash economy. Checks are almost unheard of, but cash machine networks have sprung up throughout
the country.
Smaller U.S. companies usually enter the Polish market by partnering with a small, regionally located distributor and
then developing a network from there. Larger firms may initially establish a regional warehouse system with a series
of trucks and distributors in order to branch out to assorted markets across Poland. This requires a significant upfront investment.
Industrial Goods Distribution

Imports of equipment and technology have remained steady as Polish industry modernizes and restructures to
compete with the West. However, some industries in Poland rely mostly on imports. Poles are familiar with the
technical parameters of U.S. products, even prior to the actual introduction of those products in the marketplace.
This reflects the fact that serious Polish importers do their homework.
Industrial distributors may therefore be part of a network that developed from former foreign trade organizations
(that handled imports during the Communist period), or may be individuals with significant connections to their
industry (frequently former employees of the large foreign trade firms). As industries and companies continue to
privatize in Poland, distribution networks are expanding in scope and complexity.
Many distributors of industrial equipment are very specialized and have very specific technical expertise. Because of
this, some are better able to represent foreign manufacturers on a national level than most consumer goods
distributors. However, exporters should be aware that large industrial enterprises when looking for heavy machinery
would rather have direct contact with manufacturers.
As with consumer goods, importers and other companies that represent foreign companies are becoming more
sophisticated and selective. The number and variety of imported goods available on the Polish market play an
important role here as well. Polish agents or distributors increasingly look to foreign partners to provide marketing
and promotional support, training and financing. Polish trade fairs, which have become more and more specific in
scope, are a good place to look for possible distributors.
Also, it is advisable to consider having one exclusive distributor. Potential channel partners in this sector tend to
prefer exclusive arrangements because often they bear the marketing costs of new products and do not want potential
competitors to reap the benefits of their promotional activities.
Macro-Accessibility
4.4.2
151
Agents and Distributors
Polish companies tend to act more as distributors (importing, taking possession of, and reselling a good) than as
agents. Expensive equipment is an exception to this, since many Polish companies do not have the financial
capability to make such purchases. Also, heavy industrial equipment tends to be sold directly to end-uses due to the
inability of most distributors to purchase the equipment prior to re-selling it to end-users.
There are no laws imposing roles for Polish importers. Distributor and agent agreements may take any form
beneficial to the parties involved.
It is best to find a distributor who is experienced, knowledgeable, and well-connected to existing distribution
channels for the product. Polish companies tend to be younger and less experienced than their western counterparts.
In most cases, product and marketing training must be provided to new distributors.
4.4.3
Franchising Activities
Poland remains ripe for the continued growth of franchising. Poland has worked to develop a strong commercial
infrastructure by focusing on telecommunication, banking services, media and advertising.
The most popular and largest U.S. franchises arrived in the early 1990s and helped to introduce the concept in
Poland. Their success over the last decade has proven to be the best advertisement for the promotion of franchising in
Poland. McDonalds, the first franchiser to Poland, established its first operation here in 1992. Currently there are
over 180 McDonalds restaurants, including 45 operating in their franchising system. McDonalds franchise network
is developing very fast and is the most popular fast-food chain. Other U.S. fast growing franchise networks include:
The Athletes Foot (TAF)
Kodak Express
Pizza Hut
KFC
Coca Cola Services
T.G.I. Friday
Blimpie
Sbarro
Midas
New York City Pizza (located at Statoil stations)
Collagena
Subway
Levis Strauss
Budget Rent-a-Car
Futurekids
Lee Cooper
Macro-Accessibility
152
The latest U.S. franchise system that entered the Polish market is MBE Mail Boxes ETC.
The largest foreign franchisers active in Poland (excluding the U.S. franchise systems) are:
TelePizza (fast-food)
Adidas-Salomon and Adidas Poland (sportswear and equipment)
Intersport (sportswear and equipment)
Aral (oil stations)
Afga (photo laboratories)
Whittard (tea-shops)
Spar and Rema (food supermarkets)
Body Basics (body care cosmetics retail chains)
Yves Rocher (perfumeries and beauty salons)
Petit Beteau (children clothes retail network)
Marks & Spencer (apparel)
Jean Louis David (hairstyling salons)
Jean-Claude Biguine (hair and beauty salons)
Jean Algue Paris and Camille Albane (hairstyling salons)
Costcutter (food shops)
EE English First (language schools)
HDS (stationery)
Cyberland (Internet clubs)
Mamuska-The Cheescake Shop, Denmers Teahouse, Grupa Muszkieterow (Intermarche and Bricomarche )
Ann Rent a Car Poland and Yamaha Szkola Muzyczna (music schools; master franchise purchased by
Promusica from Yamaha Europa GmbG)
Ritz Collection (jewelry retail chain)
Tivoli, Pizza Express, and Pizza Pai (fast food)
Mobil Affiche Polska (moving advertising)
Polish franchise firms began to operate in 1991-1992, that is, simultaneously with large western franchisers entering
the Polish market. The pioneers of Polish franchising are:
A. Blikle (luxury cake-shops-since 1991)
Pozegnanie z Afryka (Out of Africa gourmet coffee shops-since 1992)
They were followed by:
American-style Chicken, Mr. Hamburger, Lesne Runo (fast-food)
A.D. Dragowski (real estate offices)
Macro-Accessibility
Gabriel Hair and Beauty Salons, Chata Polska, Groszek, Piotr i Pawel (food retail)
Drogerie Natura (drugstores)
Saloniki Prasowe (owned by Kolporter - press distribution)
U Szewczyka (footwear retail chain)
Debica Dekart (tire sales and replacement)
Laboratorium Kosmetyczne DR Irena Eris (beauty salons & retail)
Orbis Travel, (tourist services)
YES Bizuteria (jewelry)
Zielona Budka (ice-cream shops)
Sklepy Familijne (food stores)
CCC (footwear retail chain)
Rafineria Gdanska, PKN Orlen (gas & oil stations)
153
There are over 120 franchise systems operating in Poland including local and foreign franchising systems. About
58% foreign franchising systems operating in Poland are franchises from the EU countries. The franchising sector
employs over a half million people. The major franchising employers are:
Retail distributors (48%)
Gas stations (13%)
Catering & hotel services (10%)
The largest number of franchises are American, French, and German. The major sector shares in the franchise
market are retail trade, services, and catering.
Financing is the most critical element for successful entry and penetration by U.S. franchisors. Although it has
generally been difficult for foreign companies to locate Polish investors capable of becoming master franchisees, the
number of local candidates interested in becoming master franchisees is on the rise.
There are no Polish laws or regulations that specifically address franchising. A franchise is subject to general
commercial law. The contract between two parties is therefore the sole legal platform for the franchise agreement. It
usually contains not only elements of civil law, but also elements of intellectual property and trademark protection.
The best franchise concept prospects are in retail trade, services (automotive, maid and personal services,
commercial cleaning, laundry and dry-cleaning), mid-range and low-end hotels/motels, and fast-food chains.
Business services, currently not represented within the franchising sector in Poland, holds great potential.
4.4.4
Direct Marketing Options
The direct marketing concept is still relatively small in Poland and is mostly practiced by joint ventures or foreign
companies selling consumer products and services. Several years ago the first foreign companies began to sell a very
limited assortment of products through catalogs. This form of marketing is growing rapidly, but one factor limiting
the spread of direct marketing is the fact that cash is still used for most sales transactions. Nevertheless, the Polish
market offers enormous potential, especially for the expansion of mail-order companies. Mail order customers are
predominantly women. Mail-order companies selling books, CDs and cassettes have become popular in Poland.
Macro-Accessibility
154
Presently, the most popular method of direct marketing is direct mail, advertisements in printed media, and
telemarketing. Electronic media is opening new opportunities. Cable television companies have introduced new
shopping channels. The number of Internet users is growing very quickly, resulting in expanded Internet on-line
shopping malls.
The Direct Marketing Association, Stowarzyszenie Marketingu Bezposredniego (SMB), was established in Poland in
1995. Currently SMB has 87 members including catalog and mail order, fulfillment, telemarketing, advertising,
direct marketing, production services, Internet, electronic media, financial, database, broker, administration,
insurance, and distribution companies. The members of SMB have established a code of ethics and guidelines in
order to establish effective methods of operations in direct marketing, protecting consumers rights and preventing
illegal business practices. The organization participated in the drafting of legislation for the protection of privacy,
which was adopted in 1998. SBM provides training and educational activities on a regular basis. SMB is a member
of FEDMA (European Federation of Direct Marketing) and IFDMA (International federation of Direct Marketing).
4.4.5
Joint Ventures and Licensing Options
Joint ventures as a form of business are abundant in Poland. Many U.S. businesses in Poland take the form of joint
ventures, with Polish companies set up to handle sales in the market. Joint ventures are an excellent way to facilitate
export sales to the Polish market.
Most joint ventures are set up so the American partner contributes capital and technology. The Polish partner
typically contributes land, distribution channels, trained workers, access to the Polish market and introductions
within the local government and business community that could take years to develop for an American company on
their own. More and more, American firms participating in joint ventures are asked to provide marketing, training,
and promotional support to their Polish partners.
Licensing of products, technology, technical data, and services is practiced less in Poland, due to concerns about
intellectual property protection. Licensing is particularly prevalent in the industrial manufacturing, consumer goods,
and textile sectors.
4.4.6
Creating a Sales Office
The choice of business entity that U.S. companies choose to establish is often determined by the scope of activities
that the company plans to undertake in Poland. If a U.S. company only plans to sell its products and services in
Poland through its own office, it usually establishes a representative office. If a U.S. company plans to invest in
Poland, there are generally only two legal forms available, a limited liability company or a joint stock company. The
entity most commonly employed by foreign investors is that of a limited liability company. The following are the
two forms of entities used by investors and information on establishing a representative office:
Limited Liability Companies

Limited liability companies (Sp. z o.o.) require at least one founder and a minimum initial capital of 4,000 PLN.
This capital must be paid in full before the company can be registered. A limited liability company may be 100
percent foreign-owned. Reserves are not required to be taken out of after tax earnings, audits are only obligatory in
certain situations, and assets can only be distributed six months after liquidation is announced.
Macro-Accessibility
155
Joint Stock Companies

Joint stock companies (S.A.) require a minimum of 100,000 PLN minimum initial capital, of which 25% must be
paid prior to registration. There are no maximum limits and in-kind contributions are exempt from customs duty.
After-tax profits from the venture may be exchanged and repatriated without permission at the end of each fiscal year
of the venture. Proceeds from the sale of shares in the venture, or liquidation of the venture may also be repatriated.
Twelve months must pass after the liquidation announcement before assets may be distributed. Polish law does not
allow interim dividends. The minimum number of founders is three entities.
Representative Offices
Representative offices are permitted by law to engage in business activity under three variations: supervisory offices,
technical offices and commercial branch offices. Permits for establishing an office are granted by the relevant
Ministry upon application by the foreign firm. Permits are valid for the length of time granted by the Ministry,
which is usually a maximum of two years. The foreign firm must reapply for renewal of its permit. Offices are by
law treated as parts of the U.S. company, and are considered an importer of products from abroad. Therefore, offices
may not engage in retailing or manufacturing activities and may hold inventory only for marketing and service
purposes.
Modern telephones, copy machines, faxes, computers and office amenities are easily available and can be leased
from a number of reputable Polish and western firms. The secretarial labor pool is reasonably abundant, although
English speaking secretaries with modest secretarial skills are not easily found. Employees with western
management and accounting experience are becoming easier to find. There are many executive search firms that
offer assistance in finding appropriate staff.
4.4.7
Selling Strategies
As discussed earlier, the Polish market is in most cases regional, and this description applies to selling as well.
Because unemployment is significantly lower in the cities, urban dwellers generally have more purchasing power
than inhabitants of rural areas. The countryside is dotted with single-factory (or formerly single-factory) towns,
many of which suffer from high unemployment.
Letters, faxes, Internet Web sites and packages of product literature will serve to introduce a product or service to a
Polish company. Communication in the Polish language is recommended if the seller would like to receive a speedy
reply. U.S. companies should ensure that translations from English into Polish are performed only by professional
translators who are fluent in modern business Polish and grammar.
A Polish customer generally will not consider making a final purchase until he or she has met with someone face to
face to discuss the product. However, the Internet is valuable selling tool and many Polish companies have begun to
conduct business on the Internet. As noted above, American companies that are little known outside of the U.S. may
need to make a significant effort (often marketing, training, or other promotional activities) to convince their
prospective Polish customer of their credibility. Product demonstrations are effective, as Poles tend to be skeptical
about claims until they are proven. Sponsored visits to the U.S. companys headquarters or manufacturing plant
frequently helps to convince Polish buyers to purchase a U.S. product.
The decision making process, especially in large companies or government agencies, can be painfully slow, as every
person or section involved in a decision usually must sign off before a decision is made. It usually takes several
meetings, and many rounds of negotiations before a deal is closed. This means that success in Poland is difficult
without an in-country presence, whether an agent, distributor, or representative office.
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Polish customers will want to discuss the technical parameters of the product, explain their needs, and negotiate the
price. In addition, the product may not be sold at the first meeting, as the customer will want some time to consider
the points discussed and to arrange financing. Initial orders are frequently small due to limited amounts of working
capital and high rates of interest on credit. Follow-on sales often grow rapidly once effectiveness and profitability are
established.
American exporters should be aware of the Polish customers main problem: access to capital. Most Polish firms are
still too small to consider going public or to issue commercial paper. Therefore, most business activities, including
payment for imports, are still self-financed. American companies that can arrange for affordable financing for their
Polish customers will have an edge over their competitors. The U.S. Export-Import Bank (Ex-Im Bank) offers a
credit insurance program that can help small and medium size U.S. firms in this regard.
Polish customers are generally enthusiastic about U.S. products and, if seriously interested, will travel great distances
across Poland in order to meet with a U.S. representative who may be visiting Warsaw. If a prospective customer
shows continued effort and interest in dialogue, the potential for a sale is good, even if the time leading up to
conclusion of a contract seems long by U.S. norms. If the proposal is well thought out, the pricing is flexible (or
assistance with financing is offered) and promotion, servicing and customer support are part of the package, chances
are good that a sale will ultimately be completed. Doing business in Poland is built upon personal relationships and
trust. U.S. companies have an advantage in Poland, as the U.S., its people, and its products are held in high regard.
4.4.8
Advertising and Trade Promotion
The trade fair business in Poland boomed at the beginning of past decade, from a single major event (the annual June
Poznan International Fair) to a full years schedule of industry and product specific events in major cities around the
country. Some fairs are still proving their worth while others have lost popularity in recent years and are no longer
attracting key Polish and international business. Direct U.S. company presence at trade fairs in Poland is minimal,
but some U.S. firms exhibit through their European or Polish distributors. U.S. firms exhibiting in larger western
European trade fairs particularly those in the Commercial Services Showcase Europe program will encounter Polish
buyers at those events. The U.S. Commercial Service in Warsaw can help find distributors interested in representing
U.S. products at Polish fairs.
Advertising in Poland is considered important, not only in the consumer product field but also in developing a
company image for all kinds of goods. Television, which reaches virtually every home in Poland via local channels
or satellite, is believed to be the most effective advertising medium in Poland. Products advertised through television
commercials show the greatest sales growth among all advertised products. The bulk of advertising revenues go to
television. The price of television spots on top rated shows has grown dramatically in the last few years as demand
has soared. Radio is another means of advertising with more than 200 local radio stations as well as two national
networks in operation.
There is a ban on cigarette and alcohol (including beer and wine) advertising for broadcasters and on alcohol ads for
display and print media. There is also a ban on pharmaceutical advertising, except for over-the-counter drugs and in
professional publications.
Print media advertising is sophisticated, and the print media market itself has grown to include a full range of
publications. Major newspapers circulate throughout Poland and reach every corner of the country. In addition,
special interest magazines, business journals, niche publications, and specialized newspapers have proliferated.
Newsweek Polska, a division of Newsweek, celebrated its second anniversary this year (2003). Classified advertising
is very well developed and effective. Most U.S. companies find print media to be a highly effective means of
reaching customers and candidates for jobs.
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Newspapers
Major daily newspapers include:
Rzeczpospolita
Gazeta Wyborcza
Zycie
Trybuna
Business Journals
Major daily business journals include:
Prawo i Gospodarka
Puls Biznesu
Business News Poland is a business journal printed by Boss Economic Information on a weekly basis. Business
Week Polski is published on a monthly basis.
There are also two English-language weeklies that cater mainly to foreigners in Poland:
Warsaw Business Journal
Warsaw Voice
Agencies
Major international, as well as local, advertising and public relations agencies abound in Poland. Advertising and
promotional service agencies include:
McCann-Erickson
Leo Burnett
Ogilvy & Mather
Saatchi & Saatchi
Publicis
Lowe Lintas GGK
Upstairs Y&R
JWT/Parintex
DArcy
NoS/BBDO
Scholz & Friends
TBWA
RMG Marcom
Ad Fabrika/FCB
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For further contact information on these journals and firms please contact the U.S. Commercial Service in Warsaw at
Warsaw.Office.Box@mail.doc.gov at telephone number (48) 22 625-4374 or fax number (48) 22 621-6327.
4.4.9
Pricing Issues
Pricing is key to the sale of U.S. products in Poland. As mentioned above, working capital is limited in Poland, even
among the larger, more successful Polish companies. Polish businesses generally spend money wisely, after
thoughtful and sometimes lengthy consideration. The most commonly expressed reason for failed sales efforts
according to potential Polish clients continues to be that the price is too high. Pricing of U.S. made products is
complicated by the addition of customs duties, Value Added Tax (VAT), and, in some cases, excise tax, all of which
may elevate the final retail price of a product dramatically. Flexibility in pricing is the key, and initial market
penetration to gain product knowledge among Polish consumers is the goal. Successful U.S. exporters work together
with their Polish representatives to keep costs, particularly import costs, as low as possible. For example, some
companies ship products unassembled to help reduce import duties. The Polish market for all kinds of products is
large and expanding, but increasingly competitive. U.S. companies that approach the market with a long-term view
of creating market share for their products will reap rewards.
Supplying
After price, service is second on the list of the Polish customers concerns. A manufacturer in the United States is
seen by the Polish distributor and customer alike as being very far away from a product exported to Poland. A
potential customer may shy away from U.S. products because he/she fears ineffective servicing, simply due to
distance, if the product requires repair or servicing.
Shipping a product back to the United States for repair or service, even if paid for by the U. S. company, is not
generally a preferred option for Polish customers. Sending spare parts to Poland is easy to do. Some firms provide
service for their exports to Poland through European representatives or firms licensed to repair their products. Even
then, some distributors worry that they may not get adequate support.
The ideal method is to provide service and customer support through a trained Polish representative or U.S. affiliate
company. The local technical support teams are a part of the U.S. companys image on the Polish market. Their
effective, fast and reliable service reflects on the U.S. manufacturers success in Poland. Therefore U.S.
manufacturers should be ready to provide full assistance to their service personnel in Poland.
U.S. manufacturers with major export accounts in Poland may wish to periodically send a service representative to
Poland to work with the local representative and visit customers.
4.4.10
Public Sector Marketing
Polands public procurement law, in effect since January 1995 (January 1996 for local government entities), applies
to most acquisitions of goods, services, or construction by nearly all government agencies, including local
governments, foundations, associations, and cooperatives. Procurements by the Ministry of Defense are also
included, but are subject to special rules. Procurements by state-owned enterprises are excluded from the law.
All tenders for products or services in amounts above 30,000 EUR must be officially announced to the public.
Tenders for lower amounts can be announced locally in the local press or through local media.
The Polish procurement law provides for domestic preferences. Bids submitted by Polish firms are lowered (only for
the purpose of the evaluation of the tender) by 20%. Tenders are evaluated by assigning an appropriate number of
points to various parts of the offer by each bidder. When a project is actually executed by a Polish company, the
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price paid by the public entity is what the Polish bidder quoted. This 20% rule applies only to bids in which a
minimum of 50% of the content of the project originates in Poland.
Unlimited tendering is the preferred method, and other procedures are restricted. Tender documents must contain
specifications, selection criteria and terms and conditions for the contract. The deadline for the submission of bids
must be at least six weeks from the announcement of a tender. Bids are opened publicly. Participation in tenders is
open to all those who are legally, technically, and financially able to perform the contract (including foreign
companies).
Information on the Office of Public Procurement, public procurement regulations and public tenders (also in English)
is available through Internet: http://www.uzp.gov.pl.
The U.S. Commercial Service strongly urges U.S. firms bidding on Polish government tenders to utilize the
Department of Commerces advocacy and counseling services to avoid common pitfalls in this complex process.
4.4.11
Hiring Local Counsel
The legal environment in Poland continues to evolve at a rapid pace. In general, Polish law firms follow changes
closely. Thus, American companies doing business in Poland are strongly urged to maintain legal representation.
This is particularly essential when bidding on a major project, forming a joint venture, or untangling a trade dispute.
Most major law firms in Poland provide business counseling in addition to legal advice. Some are experienced in
helping their contacts find Polish business partners, investments or projects to pursue.
U.S. accounting and consulting firms in Poland can also offer legal advice and business counseling. Most of the
major international accounting firms have operations in Poland that focus on business formation, tax matters, and
employee benefits. Many are also involved in the privatization process in Poland, including advising the Polish
government. All can offer practical business counseling and assistance in establishing a representative office or
incorporating a business in Poland.
A U.S. exporter new to the Polish market may not initially need specialized legal, accounting, or consulting advice as
it pursues potential partners. It can, however, take comfort in knowing that expert advice is abundant and available
in Poland through the offices of major U.S. and Polish law and consulting firms when problems arise.
For a list of law firms in Poland, please contact the U.S. Commercial Service in Warsaw at
Warsaw.Office.Box@mail.doc.gov, at telephone number (48) 22 625-4374, or fax number (48) 22 621-6327.
4.5
4.5.1
IMPORT AND EXPORT REGULATION RISKS

Trade Barriers
Poland complies with the Harmonized Tariff System. Tariff rates are generally revised at the beginning of each year,
although tariff suspensions can be introduced or lifted at any time. Depending on the country of origin, products are
divided into three categories:
Developing nations
Members of the World Trade Organization
Countries with which Poland has a bilateral or multilateral preferential trade agreement
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In 1992, Poland signed an Association Agreement with the EU that lowered or eliminated tariffs on many EU
produced goods imported into Poland, while tariffs on U.S. products did not change. At that time, the U.S. managed
to negotiate more favorable rates for some product categories, but many U.S. products are still at a disadvantage
compared to EU competitors.
As a result of a June 2001 agreement, which went in effect on September 6, 2002, between Poland and the United
States, the import duty assessed on U.S. grapefruit, some wines as well as almonds was reduced. Duty on grapefruits
originating from the U.S. dropped from 15% to 5%. Wines originating from the U.S. wines with alcohol content of
less than 13% also benefited from the 30% down to 20% tariff reduction (minimum 25 EUR/hl). In shell almonds
duties were reduced from 16% to 5.6% and shelled almonds from 16% to 3.5%.
For some luxury and strategic products (e.g. alcohol, cosmetics, cigarettes, sugar confectionery, video cameras,
satellite antennas, passenger cars, gasoline, and oil) an excise tax is also applied. The excise tax is levied on top of
the customs tariff.
Duty free quotas have been applied within certain industries, including the automotive, computer, and
pharmaceutical sectors. U.S. and foreign firms have benefited from these quotas. In some instances the quotas are
targeted on products originating from specific export regions (e.g. cars from the EU as a result of the Association
Agreement), and in others they have been assessed to help protect local industry (e.g. pharmaceutical), to help
develop industries (e.g. computer parts and components), or to protect the environment.
Refunds are possible for customs duty paid on raw materials, semi-finished goods, and products used in the
manufacture of goods for export within thirty days, contingent on documentation certifying customs duty was paid
on the goods when they were imported. However, some U.S. firms have encountered significant delays in receiving
refunds of customs duties and others have suggested replacing the up front payment/refund after re-export system
with a bond system.
Agricultural Tariffs
As a result of Uruguay Round commitments Poland maintains tariff rate quotas (TRQs) for import-sensitive
agricultural products such as beef, pork, poultry meat, wheat and rye flours, rapeseed oil, some processed products,
yeast, sauces, alcohol, tobacco, and tobacco products. The within-quota tariff is 30 percent and applies to all
countries including the EU. The over-quota tariff is 76 percent plus a maximum 0.9 EUR/kg.
As a part of Polands - EU pre-accession agreement, Poland established a 21,000 ton duty free import quota for
poultry meat from the EU. This elimination of tariffs for the EU resulted in a significant increase in imports of
poultry meat from the EU at the expense of imports from the United States. Poland maintains a duty free import
quota for 34,500 tons of pork imported from the EU. A duty free quota for 23,000 tons of poultry meat imported
from the EU. Poland is a major transshipment point for U.S. poultry meat shipments to Belarus, Ukraine and
Moldova.
Customs Regulations and Contact Information

Customs duties are based on the CIF value of the product. Customs officials are extremely strict with regards to
proper documentation. It is essential that exporters take care to fill out documents properly to avoid costly delays in
customs clearance. For further information on Polish customs regulations, please contact:
Customs Information
ul. Swietokrzyska 12
00-916 Warsaw
Telephone: (48) 22 694-4479 or 694-3194
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Tariff Rates
Customs duties apply to all products imported into Poland. Tariffs range from 0 (zero) to nearly 400% (strong
specialty sprits). The Polish tariff schedule has different rates for the same commodities depending on their country
of origin. Introduction of changes to the custom tariff (e.g. suspensions of tariffs) after it has been published is a
common practice in Poland.
Import Tariffs
Poland rescinded its import tax in 1997. As in much of Europe, a Value Added Tax (VAT) is assessed. There are
four VAT rates: 0%, 3%, 7%, and 22%, depending on the product. VAT is levied on the CIF value of the product
plus duty plus excise tax (if applicable). An excise tax is also levied on certain goods, including alcohol, cigarettes,
and cars, which is collected at the border on the basis of the CIF value.
4.5.3
Licenses Required for Imports
In general, the trade of goods and services is not restricted in Poland. In some areas, including imports of strategic
goods (e.g. police and military products, radioactive elements, weapons, transportation equipment, chemicals) a
license or concession is required. Imports of beer, wine and strong alcoholic beverages, gas, and certain agricultural
and food products (including dairy, poultry, and tobacco products) are also licensed. A permit is necessary to sell
imported alcoholic products. A phytosanitary import permit issued by Plant Quarantine Inspection Service is
required for the import of all live plants, fresh fruits, and vegetables into Poland. Several common weed seeds have
quarantine status which hampers U.S. grain and oilseed exports to Poland. Certain goods are subject to import quotas
in Poland. These include gasoline, diesel fuel and heating oils; wine and other alcohol; and cigars and cigarettes.
The Ministry of Economy issues import permits and concessions and regulates quotas. However, other Polish
ministries have special jurisdiction over products such as tobacco (Ministry of Agriculture); permits related to air,
sea, or road transport (Ministry of Transportation); or natural resources (Ministry of Environmental Protection). U.S.
exporters should ascertain whether their product requires import certification before shipping.
In most cases, before an issuing ministry grants import permission on a product, the product must be reviewed and
recommended for import into Poland by one or more inspectorates or technical associations, depending on the nature
of the product. This can be a costly, lengthy, and confusing process for the U.S. exporter and the Polish importer
alike. It is often necessary to submit samples of products or equipment for testing, regardless of the issuance of
previous U.S. or international certificates. The presentation of detailed documentation on a product is a must, and all
requests by relevant inspection agencies should be strictly adhered to in order to speed up certification procedures.
Once an application and supporting materials have been submitted, the inspecting agency will make a positive or
negative recommendation for import to the appropriate Polish ministry. When the import of a specific product is
approved, further imports of that product are free from additional regulation. U.S. companies with several lines of
like products (e.g. pharmaceutical, food preparation, or chemical products) should begin the approval procedure on
all products as early as possible.
Some products, once imported, also require registration. This is particularly true of products that come into contact
with or can affect the health of the consumer. In the case of hazardous materials the importer must receive
permission to use the product before applying for a concession to import the product into Poland.
Importers of meat, meat products, and offal must obtain a veterinary permit and each consignment must be
accompanied by the health certificate issued by USDAs veterinary authorities. Veterinary permits are also required
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for the import of live animals. Veterinary permits for breeding livestock, semen, and embryos are not issued unless a
positive opinion for the importation is received from the Central Animal Breeding Office.
Polish regulations require imported products, including food and agriculture products, to be inspected for compliance
with Polish standards. The inspection agency, Centralny Inspektorat Standardyzacji (CIS) is charged with ensuring
the quality of products offered on the Polish market.
4.5.4
Entering Temporary Imports
A license is also required for temporary import of goods, which takes place under the supervision of Polish customs
officials. Written confirmation is required, stating that the goods will be sent out of Poland on specific dates. A
deposit is required for the import of the goods subject to clearance, which must be equal the value of the goods to be
exported or the total import customs duty and taxes. Commercial samples of zero or low value can usually be
imported free of customs duty by means of a written statement to Polish customs confirming the value of the sample
and that it will stay in the possession of the importing entity. Temporary imports may also enter Poland under an
ATA Carnet. Promotional materials must be clearly marked no commercial value in order to clear customs.
4.5.5
Special Import/Export Requirements and Certifications
The only approved form for customs clearance is the Single Administrative Document (SAD), which is also used by
the European Union. This form requires the completion of 56 items, including details about parties to the sale
contract, terms of delivery and payment, customs procedures and the country of origin of the imported goods.
The importer must also complete a declaration of customs value, and the information contained in it must correspond
to that in the SAD document. An original invoice, or in some cases, a pro forma invoice indicating the value of the
goods is also required.
Some types of goods are defined as sensitive for the Polish market. Therefore, their import is controlled by specific
government agencies that are authorized to grant licenses or permits for some goods, i.e., sanitary licenses for
agricultural goods, permits for medical goods and licenses for weapons and explosive materials.
Labeling Issues
As noted above, certificate of origin documents are required for importation. Labeling and packaging requirements
also vary depending on the product. Consumer goods require a product description in Polish somewhere on or inside
the package. Packaging should clearly indicate the country of manufacture. Packaged or canned food products
require Polish language labels containing the product composition, nutritional value, an outdate, the name and
address of the producer, and the product weight. The Polish government is considering requiring food products using
Genetically Modified Organisms (GMOs) to be so labeled. Some U.S. companies have found that using the English
language somewhere on the packaging (e.g. product name, promotional slogan) helps give the product additional
prestige or value in the eyes of the Polish consumer.
Restrictions on Imports
The import of some products is prohibited. These include two-stroke engine cars; automobiles, racing cars, and vans
older than ten years; trucks older than six years; automobiles with no proof of the year in which they were
manufactured and badly damaged automobiles.
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Controls on Exports
A validated U.S. export license is required prior to shipping certain controlled commodities to Poland, as provided
under the U.S. Department of Commerces Bureau of Export Administrations (BXA) Commodity Control List. For
more information and assistance, please contact BXAs Exporter Counseling Division at (202) 482-4811 or refer to
BXAs Web site at http://www.bxa.doc.gov.
Poland is a member of the Wassenaar Arrangement and has established its own export control regime for munitions
and dual use commodities.
Warranty and Non-Warranty Repairs

Items sent for repairs under warranty do not have duties placed on them when they are returned to Poland. The same
applies to parts imported under warranty for repairs in Poland.
4.5.6
Local Standards
B Safety Certificates
Harmonization of standards, certification, and testing procedures with the EU, including greater reliance on voluntary
standards, is now the main objective of Polish standardization policy. Under the European Conformity Assessment
Agreement of 1997, Poland agreed to introduce an EU-compatible certification system.
Since 1994 Poland has developed and applied its own extensive system of standards and certification to protect
consumer interests. Originally not harmonized with international product standards, it is been gradually adjusted to
the European Union system of certification, which will be valid when Poland becomes the EU member. The
European CE mark and the manufacturers statement are currently recognized for a number of products. However,
the law is not clear on these issues and guidance from the PCBC and other testing centers are vague.
If a U.S. company is in possession of a European CE mark for its products or an ISO 9000 certificate for its
company, these documents can help to accelerate the current certification process. Information regarding the cost for
testing products is also inconsistent. In most cases testing procedures can be lengthy. The U.S. Commercial Service
advises U.S. exporters to contact its Warsaw at Warsaw.Office.Box@mail.doc.gov or at the telephone or fax
numbers listed in Chapter 11 to determine whether or not their products are subject to certification requirements and
updates on current certification procedures.
Other Polish Standards

Polish standards that cover a wide range of products have been developed over the years by a central institution, the
Polish Standards Committee (PKN). Polands Standardization Law provides the foundation for moving toward a
system based on self-certification and for greater harmonization with EU and international standards. Much of the
PKNs recent work has focused on reviewing Polish standards. The plan is for Poland to invoke EU standards in
cases where EU and other international standards differ.
Building Products: Special, Separate Technical Approval Required

No standards exist for many building products that are new to Poland. However, prior to being introduced on the
Polish market these products must be certified that they conform to existing Polish building product standards.
Products must receive technical approval, a document issued by designated research and development institutes.
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The central institution performing tests for the vast majority of building products and materials is the Institute for
Building Technology (ITB) in Warsaw. The ITB deals with products such as siding, roof shingles, windows and
bricks.
Some building products, after receiving technical approval, may also require a B Certificate, as described above.
After Poland joins the EU, it is expected that the requirement for B certificate will not longer be valid. Number of
companies in Poland, possessing ISO series 9000 certificates is growing.
4.5.7
Free Trade Zone Options
Duty free zones can be established by the Minister of Finance in cooperation with the Minister of Economy and are
managed by authorities designated by the Ministers, which is usually the provincial governor who issues the
operating permit for a given zone.
Bonded warehouses and customs and storage facilities are available. They are operated under permission issued by
the customs authorities and can be operated by commercial code companies.
Customs duties are repaid to the importer for re-exports of products within 12 months of the date of customs
clearance in full or partially, depending upon their length of time in country.
4.5.8
Adherence to Free Trade Agreements
EU Association Agreement
As mentioned above, Poland began implementing the trade provisions of the Association Agreement with the
European Union in 1992. This has lowered or eliminated duties on most EU exports to Poland.
FTAs
Poland has free trade agreements (FTAs) with the European Free Trade Association (EFTA) countries (Iceland,
Norway, Switzerland, and Liechtenstein) as well as with Israel, Lithuania, Latvia, Estonia, Turkey, and Croatia.
These agreements grant firms from these countries certain tariff preferences over U.S. competitors and give lower
tariffs to Polish companies exporting to these countries.
4.6
4.6.1
INVESTMENT CLIMATE
Openness to Foreign Investment
Foreign capital has played an important role in the transformation and development of the modern Polish market
economy. Since 1990, Poland has been the recipient of over $65 billion in foreign direct investment (FDI),
principally from Western Europe and the United States. Successive Polish governments have sought to attract and
retain foreign-based companies, which have brought modern production, marketing, and management techniques to
Poland, created new jobs, and increased Polands linkages to the world economy.
Foreign companies enjoy unrestricted access to the Polish market, apart from legal limitations on foreign ownership
of companies in selected strategic sectors. One exception is real estate, particularly involving agricultural land,
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which remains politically sensitive for historic reasons. Public attitudes towards foreign investment are generally
good, although specific cases of foreign investment have become controversial. For example, the large retail
discount chains, primarily British, French and German, that have taken an increasing share of the Polish retail market
are criticized for driving smaller Polish-owned shops out of business.
Foreign and domestic companies complain that the Polish Government economic decision making is slow,
inconsistent, and unpredictable. Responding to these concerns, the Polish Parliament adopted in March 2002 a
program called Entrepreneurship First (a part of an economic development strategy EntrepreneurshipDevelopment-Work) with the aim of improving the conditions for establishing and running businesses in Poland for
both foreign and domestic investors. The package includes proposals simplifying taxes, making it easier to hire
workers, reducing labor costs, and simplifying procedural regulations.
Major Laws and Regulations

Poland has a legal regime that protects property rights and investment, allows private business activity in almost
every sector of the economy, provides generally equal treatment for domestic and foreign companies, and permits the
repatriation abroad of profits and capital. Polands 1997 Constitution protects the rights of private ownership and
succession and states that expropriation is allowed solely for public purposes and only with just compensation.
In January 2001 the legal framework for the establishment and operation of companies in Poland, and in particular of
companies with foreign investors, was significantly altered, when a new Commercial Companies Code and a new
Law on Economic Activity took effect. These new laws replaced existing legislation -- the 1934 Commercial Code
and the 1991 Law on Companies with Foreign Participation. The goal of these two laws, as well as a new Law on
Public Aid to Companies, is to define and limit the role of the state in economic and commercial life, notably by
reducing the number of government approvals and setting clear rules for state subsidies. The GOP is working on
amendments to the Economic Activity Law with the aim to create a business friendly environment in Poland.
Poland made considerable progress in adapting Polish law to the EU and OECD standards including implementation
of the national treatment principle. With few exceptions, foreign investors are now guaranteed national treatment.
Foreign ownership restrictions in a number of sectors will be amended when Poland joins the EU, in conformity with
EU law. However, foreign companies from outside the EU will not necessarily enjoy the same access rights as EUbased firms. In April 2002, the Polish Parliament passed a law on the financial support of investments. In line with
this Law a company investing in Poland, foreign or Polish, may receive assistance from the Polish budget.
Under the 2000 Commercial Code, companies can be established as joint-stock companies, limited liability
companies, limited joint-stock partnerships, professional partnerships, registered partnerships, and limited
partnerships. All of these are available to a foreign investor, provided he has the right of permanent residence in
Poland and originates from a country offering reciprocity for Polish enterprises. If the above conditions are not met,
the investor may establish only a limited partnership, a limited liability company or a joint-stock company. Such
investors are not subject to further limitations on the form of economic activity they chose to undertake.
The November 1999 Law on Economic Activity also revised existing rules for establishing branch and representative
offices. Branch offices are registered in the National Court Register under the name of the foreign investor, with the
notation branch in Poland. A branch office can perform any activity within the scope of business of the parent
foreign investor who established the branch. Representative offices are limited in their activities to promotion and
advertising for the parent foreign investor. Representative offices are registered in a special log kept by the Minister
of Economy, who must obtain the opinion of the appropriate ministry or administrative authority responsible for the
sector a foreign investor wants to operate in. Registration may be refused in certain situations provided by law
(required documents are not submitted on time; for State security reasons). Establishing a branch or representative
office no longer requires obtaining any permits from administrative authorities, as was required before. In both cases,
registration and an entry into the appropriate register is obligatory.
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According to the Law on the National Court Register of October 1997, all companies, commercial partnerships, and
sole proprietorships must be registered in the Register of Entrepreneurs, which is that part of the National Court
Register managed by district courts. Even companies that are already entered in the commercial register must
register in the National Court Register. The Register of Entrepreneurs is open to the public.
Screening and Licensing

Poland does not have any general screening mechanism for entry and establishment of businesses by foreign firms.
Authorization requirements and foreign equity limits do exist for a limited number of sectors. The Law on Economic
Activity requires a permit from the Treasury Ministry for certain major capital transactions, or lease of assets, with a
state-owned enterprise. Furthermore, that law restricts investment in certain sectors to Polish entities based on
considerations of public security. For example, only a Polish entity can establish an airport, but licenses and
concessions for defense production and management of seaports will be granted on the basis of national treatment for
investors from OECD countries.
Polish law establishes the following ceilings on the share of foreign ownership: air transport (49 percent); radio and
television broadcasting (33 percent); and gambling (0 percent). Furthermore, in some sectors (broadcasting,
insurance) the number of Polish citizens on supervisory and management boards must be higher than the number of
foreigners.
The sale of agricultural land to foreigners has long been a sensitive issue. The 1920 Law on Acquisition of Real
Estate by Foreigners prohibited a foreigner from acquiring real estate without Polish Government permission. In
1996, Poland liberalized that law as part of its effort to join the OECD. The amended law allows foreign individuals
and firms to own an apartment, 0.4 hectares (4,000 square meters) of urban land, or up to one hectare of agricultural
land without a permit. Also, foreign companies no longer need to obtain pre-approval for larger amounts of land
before participating in bidding for a project or privatization. The acquisition of real estate exceeding the above
limits, or the purchase of shares in a foreign-controlled Polish company owning real estate, still requires approval
from the Ministry of Interior, with the consent of the Defense and Agriculture Ministries. Companies report that
procedures on acquisition of the real estate are more transparent and the whole process is less burdensome.
Special rules apply to enterprises from EU countries. If an EU enterprise which has established a branch in Poland
applies for permission to buy land, the Ministry of Internal Affairs and Administration generally grants the
permission if it is essential to conduct business. Permission might be refused for reasons of social policy or public
security.
A foreign business intending to buy real estate in Poland may apply for a provisional permit from the Ministry of
Administration and Interior which is valid for up to six months, during which time the company is expected to
assemble documents demonstrating it is a viable business. The Ministry rarely turns down final permits once the
company presents its formal application.
Foreign and domestic investors alike must obtain governmental concessions, licenses or permits to engage in certain
activities. For example, the National Bank of Poland (central bank) and the Finance Ministry issue banking licenses;
the Finance Ministry provides permission to operate an insurance company; the Securities and Exchange
Commission grants licenses for brokerage activities; the postal and telecoms regulator URTiP issues licenses for
telecommunication and courier services; the National Broadcasting Council issues radio and television broadcasting
licenses; the Economy Ministry gives permits for foreign trading in certain goods and services; the Health Ministry
authorizes permits for the pharmaceutical and medical materials sectors; the Infrastructure Ministry provides licenses
for air, international road, rail and maritime transport, and the construction and exploitation of highways; local
governments provide permits for buses and taxis, waste disposal, pharmacies, and extraction of minerals; the Interior
Ministry licenses the arms industries and security services; and the Agriculture Ministry provides permits for alcohol
and tobacco industries. This process was liberalized in 2001, when the number of sectors in which concessions are
required was reduced from 27 to 9 -- broadcasting, aviation, energy, weapons, rail transport, highway construction,
mining, and private security services.
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Discrimination against Foreign Investors

Generally, foreign investors receive similar treatment as domestic investors both at the time of their initial investment
and after the investment is made. Foreign firms do face potential discrimination in public procurement contracts.
Polands 1994 Government Procurement Act, as amended, which is based on the United Nations model, allows for a
twenty-percent price advantage for domestic firms. There is also a fifty percent domestic material and labor content
minimum required for all bids. Moreover, the ordering body can limit the participation in bidding procedures to
domestic entities on condition that the value of the procurement or the stake of public finance contribution does not
exceed EUR 30,000. Irrespective of the value, tenders for construction are limited to domestic entities (only Polish
materials and products may be utilized).
Amendments to the Public Procurement Act (passed in July 2003) are intended to make the procurement process
more transparent. New regulations raise the threshold above which state institutions must hold tenders for
procurements to EUR 6,000 from EUR 3,000. Previously, some companies abused vague wording in the statute to
artificially prolong the tender process if they believed they were likely to lose a bid. The amendments also stipulate
that complete documentation will be available to bidders after a tender has been finalized.
4.6.2
Conversion and Transfer Policies
Restrictions on Converting or Transferring Funds

Poland provides full IMF Article VIII convertibility for current transactions. The Polish foreign exchange law fully
conforms to the OECD Codes of Liberalization of Capital Movements and Current Invisible Operations.
The new law introduces a distinction between non-residents from EU countries and non-residents from third
countries. It breaks the latter into not only non-EU countries, but also to non-OECD and non- European Economic
Area (EEA) countries. Non-residents from the EU (as well as OECD and EEA) are treated with priority and currency
transactions in their case are subject to more lenient provisions than currency transactions with non-residents from
third countries. The foreign exchange law defines restrictions and obligations connected with transactions turnover in
foreign exchange. Exceptions from those restrictions and obligations requires a general (issued by the Minister of
Finance in the form of a decree) or individual foreign exchange permit.
Foreign exchange permits issued by the National Bank of Poland (NBP) are needed to:
Determine and accept amounts due from non-residents by residents in currency other than convertible currency
(the list of convertible currencies is published by the President of NBP on the web)
Export and dispatch abroad of domestic and foreign currencies of an amount exceeding EUR 10,000 (within the
framework of a single transaction) excluding exporting and dispatch abroad of domestic and foreign currencies
by non-residents should they have previously imported them into the country and duly declared this upon
customs clearance
Open accounts in banks and branches of banks, located in third countries, both directly and through other
entities, by residents
Make payments between residents in foreign currencies, excluding payments between private individuals, if they
are not connected to the management of a business activity
Conduct office-related exchange activities
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Special restrictions may be introduced on foreign exchange transactions with foreign countries, if they are necessary
to:
Implement the decisions of the authorities of international institutions, of which the Republic of Poland is a
member
Ensure public order and security
Ensure balance of payments, in the case of its general imbalance or a sudden economic slump
Ensure the stability of the Polish currency in the event of sudden fluctuations of its exchange rate or any threat in
this matter.
Generally, all operations and payments in Poland must be made in the Polish currency (zloty).
Transfer of sums by non-residents that are subject to taxation may be carried out only after the presentation of a
confirmation from a tax office verifying the payment of the due taxes.
A foreigner who does not need a permit may convert or transfer currency to make payments abroad for goods or
services and also may transfer abroad his share of after-tax profit due from operations in Poland. Capital brought
into Poland by foreign investors may be freely withdrawn from Poland in instances of liquidation, expropriation, or
decrease in capital share. Full repatriation of profits and dividend payments is allowed without obtaining a permit.
However, a Polish company (including a Polish subsidiary of a foreign company) must file withholding tax with the
Polish tax authorities on any distributable dividends unless a double taxation treaty is in effect. There is a double
taxation treaty with the United States. An exporter may open foreign exchange accounts in the currency it chooses.
Availability of Foreign Exchange and Remittance

Foreign exchange is widely available through commercial banks, as well as exchange offices. Payments and
remittances in convertible currency may be made and received through a bank authorized to engage in foreign
exchange transactions; most banks have such an authorization. Poland does not prohibit remittance through a legal
parallel market, including one utilizing convertible negotiable instruments (such as dollar-denominated Polish bonds
in lieu of immediate payment in dollars). As a practical matter, however, such payment methods are rarely, if ever,
used. Foreign investors have not complained of any significant difficulties or delays in remitting investment returns
such as dividends, return of capital, interest and principal, lease payments, royalties or management fees.
4.6.3
Expropriation and Compensation
Since the collapse of communism in 1989, potential expropriation in Poland has not been an issue. The Law on Land
Management and Expropriation of Real Estate provides that property may be expropriated only in accordance with
statutory provisions such as the construction of public works, national security considerations or other specified cases
of public interest. Full compensation, at market value, must be paid for the expropriated property. Article 21 of the
Constitution states that Expropriation is admissible only for public purposes and upon equitable compensation.
Although there have been no cases of expropriations since reforms began in 1990, the implementation of a major
highway construction program in Poland may involve some expropriations of land under the above-mentioned law.
There may also be challenges brought by companies investing in electricity generation plants related to a draft law
which would cancel long term energy contracts.
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169
Dispute Settlement
Generally, foreign firms are wary of the slow and over-burdened Polish court system and prefer to rely on other
means to defend their rights, notably international arbitration. Similar to the French and German systems, the Polish
legal system is a prosecutorial one. Contracts involving foreign parties normally have a dispute settlement clause
that gives terms for arbitration of possible dispute in a third country court (in Britain or Switzerland, for example, in
the case of a dispute between U.S. and Polish parties). Poland has a bankruptcy law. Declaration of bankruptcy may
be filed by a companys creditors or governing bodies. Every creditor of an insolvent company lays claims to his
liability in writing. Liabilities are repaid in the following order: cost of legal proceedings; employee remuneration;
liabilities to the State and Social Security Fund (ZUS), secured by a mortgage or pledge; other liabilities secured by
mortgages or pledges; other taxes and other public liabilities; other liabilities. Prior to 1998, a secured creditors
position could be superseded by subsequent tax arrearages and other secured credits. The Mortgage Banking Act of
1997 and the Law on Registered Pledges and Pledge Registry of 1997 protect qualified mortgagors and secured
creditors against subsequent tax liens and other secured and unsecured claims. Instead of liquidation, the bankruptcy
proceedings may be finalized by an agreement between the company and its creditors.
A Bankruptcy Law of 28 February 2003, which becomes effective on 1 October 2003, increases creditors rights. This
Law introduces a new body - creditors preliminary assembly, a tool designed to enable creditors to influence
bankruptcy proceedings. Creditors Assembly has the right to decide, at the initial stage of bankruptcy process,
whether a debt settlement agreement is possible or assets of a bankrupt company should be liquidated. Introduction
of the new body considerably increases creditors role in bankruptcy proceedings. Monetary judgments are usually
made in local currency.
International Arbitration
Decisions by an arbitration body are not automatically enforceable in Poland, they must be confirmed by a Polish
court. Poland is party to four international agreements on dispute resolution, with the Ministry of Finance acting as
the governments representative:
The 1923 Geneva Protocol on Arbitration Clauses
The 1958 New York Convention on the Recognition and Enforcement of International Arbitration Awards
The 1961 Geneva European Convention on International Trade Arbitration
The 1972 Moscow Convention on Arbitration Resolution of Civil Law Disputes in Economic and Scientific
Cooperation
Poland is not a member of Washington Convention on the Settlement of Investment Disputes between States and
Nationals of Other States.
4.6.5
Trade-Related Investment Measures (TRIMs)
Notification/Compliance
Poland notified the WTO that on January 1, 1997, it terminated the measure notified previously under Article 5.1 of
the TRIMs. This measure, which had concerned tax rebates limited to domestic cash registers. It was the only one
that Poland had given notice of to the WTO.
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Performance Requirements
Poland generally does not impose performance requirements for establishing or maintaining an investment.
However, in connection with the privatization of certain large companies the government and the purchasers have
negotiated terms that included performance requirements. For example, Fiat and Daewoo agreed, among other
things, to meet certain negotiated production targets and investment and employment levels when they bought stateowned car plants. As discussed above, there are limits on foreign participation in certain economic activities, such as
broadcasting and air transportation.
Investment Tax Incentives

Regulations on special economic zones and on public assistance to entrepreneurs provide the basis for exemptions
from income tax or other incentives. These have been reviewed as Poland negotiated the terms of its entry into the
EU and EU norms on the allowable level of public assistance to private companies begin to apply. Existing tax and
other investment incentives are based on the relative prosperity of the region where the investment is based, the size
of the investment and the number of jobs created. Strategic investors may obtain real estate tax exemption or
reduction as well as additional local incentives. All such exemptions need to be negotiated with the local authorities.
Foreign Participation in Government Financed Research

Foreign companies have not participated in government-funded research and development projects managed by the
Committee for Scientific Research (KBN). Nonetheless, there is no proscription against such participation.
Visa and Work Permit Requirements

Foreign investors can and do bring personnel into Poland. Polands visa and work permit requirements allow
foreigners to live and work in Poland. However, many firms and foreigners in practice have had difficulty in
obtaining both documents. Work permits are issued by local authorities, which vary in the speed with which they
issue permits. Poland requires an applicant to receive their visa in his or her home country, rather than in Poland or
in neighboring countries. This procedure is often burdensome.
Discriminatory or Preferential Export/Import Policies

The government supports exporters through export credit guarantees from a state-owned insurance entity (KUKE).
KUKE provides credit guarantees for all firms registered in Poland (this includes foreign firms and firms with
foreign capital). However, for products subject to export contracts, the Minister of Economy (in agreement with the
Minister of Finance) establishes a minimum percentage share of components of Polish origin in the final product for
it to be considered a domestic product. Currently, the minimum percentage share is 50 percent. In February 2002,
the Ministry of Finance signed an agreement with Bank Gospodarstwa Krajowego (BGK) on subsidies on interest
and export credits with the aim to make it easier for exporters to obtain cheaper credits to finance exports.
4.6.6
Right to Private Ownership and Establishment
Rights of Ownership and Establishment

Domestic and foreign private entities have a general right to establish and own, as well as dispose of, a business and
to engage in almost all forms of lawful economic activities. Article 64 of the Constitution provides: Every person
has the right to ownership, other property rights, and the right of inheritance. Ownership, other property rights, and
the right of inheritance are subject to legal protection that is equal for all. Ownership may be restricted only by law
and only to the extent to which it does not abridge the essence of the right of ownership. In the case of land, a
second form of title is the perpetual lease, under which the lease holder generally controls the property for 40 to 99
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years, and which can be extended for up to 99 additional years. Such a perpetual tenant has the right to dispose of its
interest in the land by sale, gift, or bequest. As discussed above in Section A.1., there are a few sensitive areas in
which participation of foreigners is restricted, e.g., broadcasting, air transportation and gambling; further, foreign
ownership of other than a small amount of real estate requires a government permit. Apart from these restrictions,
foreign entities can freely establish, acquire and dispose of interests in business enterprises.
The Civil Code, as amended, regulates property rights between individuals or legal entities. The amendment of July
1990 reintroduced the basic standards of free market economy and ownership. Civil Code regulations are based on
the principles of equality of all parties, regardless of their ownership status, equivalency of obligations, discretion,
protection of private ownership and freedom of contracts.
Competitive Equality
The private sector has expanded rapidly since 1989 and now dominates almost every sector of the economy, although
state-owned entities still dominate such sectors as coal, steel, and utilities. The private sector is estimated to employ
over two-thirds of Polands labor force and to produce over 70 percent of GDP. Competition between privately
owned and state-owned enterprises is steadily being replaced by competition among private firms. Officials at
various levels of government occasionally exercise their discretionary authority to help state-owned enterprises. For
example, tax authorities have not pressed some large, troubled state-owned enterprises to pay their taxes, in order to
avoid putting them into bankruptcy. Nevertheless, in line with EU standards governing competition, the new
commercial code that took effect in 2001 has established a more level playing field.
4.6.7
Intellectual Property Risks
Real Property
Polands legal system protects and facilitates the acquisition and disposition of property. The 1997 Mortgage
Banking Act provides that a recorded mortgage by a licensed mortgage bank will take priority over subsequent tax
liens and other secured and unsecured claims.
Chattel/Personal Property
The 1997 Law on Registered Pledges and Pledge Registry provides protection for secured creditors and establishes a
new registry system. Creditors will be able to place liens on assets and rights, both present and in the future.
Legal System
Poland has a non-discriminatory legal system accessible to foreign investors that protects and facilitates acquisition
and disposition of all property rights, such as land, buildings and mortgages. Many investors -- foreign and domestic
-- complain the judicial system is slow. Foreign investors often voice concern about frequent or unexpected changes
in laws and regulations.
Intellectual Property Rights

In early 2000 Poland passed major new legislation governing intellectual property rights, bringing Poland into
compliance with its obligations under the WTO TRIPS Agreement and to the EU. Amendments to the 1994
Copyright Law extended coverage to pre-1974 sound recordings, removing a major shortcoming in Polish law. The
new Industrial Property Law replaced existing legislation governing patents, trademarks and other industrial
property. Piracy of intellectual property remains a significant problem. In addition, the length of protection afforded
to proprietary research test data submitted by pharmaceutical companies remains below U.S. or EU standards. Polish
authorities have made little progress in recent years, much remains to be done to protect IPR, and Poland was placed
on the USTR Priority Watch List due to several shortcomings.
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4.7
172
TRANSPARENCY OF THE REGULATORY SYSTEM
The government acknowledges that its policies are not as transparent as they ought to be and that bureaucratic
requirements continue to impose a burden on investors. Reforms designed to deregulate, increase transparency, and
promote competition are underway as part of the broader process of EU accession. Nonetheless, uneven and
unpredictable regulatory treatment and a generally high level of administrative red tape are recurring complaints of
investors, both domestic and foreign, a problem that the governments Entrepreneurship First reform program is
meant to counteract.
Competition
Poland made considerable progress in adapting its industry to the needs of an economy based on competition. In the
90s, reforms in the energy sector began, and many sectors including trade, finance, insurance, telecommunication,
motor industry and construction have been privatized. Nevertheless, competition policy in Poland remains an area of
concern because roughly 30 percent of output still comes from the state-owned sector. The government seeks to
encourage the competition necessary for a free-market economy primarily through privatization and restructuring of
most of the remaining large state-owned enterprises and deregulation. In addition, the Office for Competition and
Consumer Protection is responsible for promoting fair competition in the market and for tracking and elimination of
anti-competitive practices.
Tax, Labor, Health and Safety, and Other Laws as Impediments

Foreign and domestic investors must comply with a variety of laws concerning, among other things, taxation, labor
practices, health and safety, and the environment. Complaints about these laws, especially the tax system, center on
the lack of clarity and often-draconian penalties for minor errors.
4.7.1
Capital Market Risks
Capital Markets
Polands policies generally facilitate the free flow of financial resources. Banks can and do lend to foreign and
domestic companies. Companies also can and do borrow abroad and issue commercial paper. Poland has developed
healthy equity markets. The 1991 Law on Public Trading in Securities and Trust Funds created the regulatory
framework for operations on the capital market and introduced its major agents: the Securities and Exchange
Commission; the stock market; and the stock-broker. This Law was replaced by the 1997 Law on Public Trading
and Securities, amendments to which took effect in January 2001. A modern trading system (Warset) was launched
on the WSE in 2000, based on a similar system used by the Paris bourse. The system enables direct cooperation with
other stock exchanges in Europe. There is also an over the counter market, the Central Table of Offers (CeTO),
which operates on a basis similar to NASDAQ and began operations in 1996.
The 1997 Investment Funds Act allows for open-end, closed-end, and mixed investment funds. In general, no special
restrictions apply to foreign investors purchasing Polish securities. However, as a general rule, corporate bonds are
not freely accessible to foreign parties. Polands debt instrument market remains poorly developed, with the
exception of the Treasury securities segment, in which foreign portfolio investors have been particularly active. The
Ministry of Finance is preparing a new law on investment funds, which will include regulations allowing further
development of securitization instruments in Poland.
Venture capital activity is conducted by investment funds, consulting companies, investment banks, special funds
belonging to financial corporations, and companies in the IT sector. Most of those are foreign companies or
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companies with a foreign shareholder, mainly due to the lack of funding and experience in this type of activity on the
domestic market. Most companies established by venture capital funds operate in the IT and media sectors.
Credit Allocation
Credit allocation has been on market terms. The government, however, has some programs offering below-market
rate loans to certain domestic groups, such as farmers and homeowners.
Access
Foreign investors and domestic investors have equal access to the Polish financial markets. Most private Polish
investment is still financed from retained earnings, while foreign investment is mainly direct investment, using funds
obtained outside of Poland. More and more Polish firms are raising capital in Europe or the U.S.
Legal, Regulatory and Accounting Systems

Due to recent amendments and interpretations to the 1994 Accounting Law which came into force on January 1,
2002, the Polish accounting standards do not differ significantly from international standards. In cases, where there is
no national accounting standard, the appropriate International Accounting Standards may be applied. Poland is in the
process of harmonizing legal, regulatory and accounting systems with those in the EU, which sometimes lack
transparency. The major international accounting firms provide services in Poland and they are familiar with the
U.S., EU and Polish accounting standards.
Portfolio Investment
The Polish regulatory system fosters and supervises the portfolio investment market. Both foreign and domestic
persons may place funds in demand and time deposits, stocks, bonds, futures and derivatives. The stock and
Treasury bill markets are fairly liquid, but many other investments are not, such as Treasury bonds. The Polish
Securities and Exchange Commission has built a strong reputation for supervising the stock market.
Banking System
The banking sector is dominated by twelve large commercial banks, two of which are controlled by the State
Treasury and the remaining ten by foreign institutions. The Polish banking system is considered one of the best
regulated and supervised in Central and Eastern Europe.
Cross-Shareholding
Cross-shareholding arrangements are rare and so far played a minor role in the Polish economy.
Hostile Takeovers
Neither the government nor private firms have taken measures to prevent hostile takeovers by foreign or domestic
firms. Hostile takeover attempts are still rare, but have been occurring more frequently.
Standards-Setting Organizations
Governmental agencies, and not companies, set industry standards. These agencies are not required to consult with
domestic or foreign firms when establishing standards, though the former much more than the latter tend to play an
influential role in the process.
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4.7.2
174
Political Violence
Poland is a politically stable country. There have been no confirmed incidents of politically motivated violence
toward foreign investment projects in recent years. Objection to foreign investment is a theme heard from fringe
political parties. Poland has neither belligerent neighbors nor insurgent groups. The Overseas Private Investment
Corporation (OPIC) provides political risk insurance for Poland.
4.7.3
Corruption
Anti-Corruption Laws and Regulations

Polish laws and regulations provide a legal basis for combating corruption. Bribery is a criminal offense and grease
payments are not tax-deductible expenses. The Finance Ministrys tax authorities concede, however, that bribes can
be disguised as other payments, which are deductible. One of the chief tools in preventing corruption is a transparent
system of government procurement by open tender at all levels of government. A 1997 law restricts economic
activity for people holding public positions. This law prevents a public official from engaging in business activities
where he or she would have a conflict of interest while he or she is an official and for one year thereafter. The law
applies to parliamentarians, government officials, and local officials. On 1 July 2003, new penal code regulations
combating corruptions come into force. These amendments include: no punishment for those from whom bribes are
extracted when they inform police about this fact; new broader definition of a public official, which includes local
government officials, doctors, and CEOs; seizure of assets if an accused person does not manage to prove they come
from a legal source.
OECD Anti-Bribery Convention

Poland ratified the OECD Convention on Combating Bribery in 2000; implementing legislation became effective
February 3, 2001.
Cases of Corruption
Reports of alleged corruption are publicized. They often appear in connection with privatization, government
contracting, and the issuance of a regulation or permit that benefits a particular company. Reportedly, corruption by
custom and border guard officials, tax authorities, and local government officials often occurs and, if discovered, is
usually punished. Businesses report that Polish officials have asked for political campaign contributions in return for
favorable treatment. Overall, U.S. firms have found that maintaining policies of full compliance with the U.S.
Foreign Corrupt Practices Act is effective in building a reputation for good corporate governance and that doing so is
in no way an impediment to profitable operations in Poland.
Combating Corruption
Corruption is widely recognized as a problem in Poland, as well as a restraint on economic growth and development.
While public debate on the subject is growing, there has not yet been a significant improvement in enforcement of
anti-bribery criminal laws by the police authorities. The government has sought to reduce the opportunities for
corruption, and, in June, the Prime Minister announced a major new initiative. The private sector is now paying
greater attention to fighting corruption. In 1998, concerned Poles established the Polish chapter of Transparency
International. Several other NGOs have launched campaigns to increase public awareness. Business groups,
including the American Chamber of Commerce, have also been vocal on the subject.
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Bribery of a Domestic Official

Bribery and abuse of public office are crimes under the Polish Criminal Code.
Bribery of a Foreign Official

Legislation implementing the OECD Convention classifies the payment of a bribe to a foreign official as a criminal
offense, the same as if it were a bribe to a Polish official.
Enforcement Agencies
The Justice Ministry and the police are responsible for enforcing Polands anti-corruption criminal laws; the Finance
Ministry administers tax collection and is responsible for denying the tax deductibility of bribes.
Convictions
No foreign investor or major government official has been found guilty of corruption. A number of officials have
been investigated.
4.7.4
Bilateral Investment Agreements
Poland has ratified 56 bilateral investment agreements:
Albania (1993)
Argentina (1992)
Australia (1992)
Austria (1989)
Bangladesh (1999)
Belgium and Luxembourg (1991)
Belarus (1993)
Bulgaria (1995)
Canada (1990)
Chile (2000)
China (1989)
Croatia (1995)
Cyprus (1993)
Czech Republic (1994)
Denmark (1990)
Egypt (1998)
Estonia (1993)
Finland (1998)
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France (1990)
Germany (1990)
Greece (1995)
Hungary (1995)
India (1997)
Indonesia (1993)
Iran (2001)
Israel (1992)
Italy (1993)
Kazakhstan (1995)
Kuwait (1993)
Latvia (1993)
Lithuania (1993)
Malaysia (1994)
Moldova (1995)
Morocco (1995)
the Netherlands (1994)
Norway (1990)
Portugal (1993)
Romania (1995)
Singapore (1993)
Slovenia (2000)
Slovakia (1996)
South Korea (1990)
Spain (1993)
Sweden (1990)
Switzerland (1990)
Syria (1996)
Thailand (1993)
Tunisia (1993)
Turkey (1994)
Ukraine (1993)
United Arab Emirates (1994)
176
Macro-Accessibility
United Kingdom (1988)
United States (1994)
Uruguay (1994)
Uzbekistan (1995)
Vietnam (1994)
Yugoslavia (1997)
177
Agreements with the United States

The United States and Poland signed a Treaty Concerning Business and Economic Relations in 1990; it entered into
force in 1994 for an initial period of ten years. The Treaty grants U.S. investors domestic privileges and provides for
international arbitration in the case of investment disputes.
4.7.5
OPIC and Other Investment Insurance
OPIC
The Overseas Private Investment Corporation (OPIC) provides political risk insurance for U.S. companies investing
in Poland against political violence, expropriation, and inconvertibility of local currency. OPIC offers medium- and
long-term financing in Poland through its direct loan and guarantee programs. Direct loans are reserved for U.S.
small businesses or cooperatives and generally range from $2-10 million. Loan guarantees are issued to U.S. lending
institutions and range from $10-75 million, and in certain instances up to $200 million.
MIGA
The World Banks Multilateral Investment Guarantee Agency also provides investment insurance similar to OPICs
for investments in Poland.
4.7.6
Labor
Poland has a well-educated, skilled labor force. Productivity remains below western standards, but is rising rapidly.
Unit costs remain competitive. There are shortages of persons with foreign language skills and training in
contemporary management, finance, and marketing. Polish workers are usually eager to work for foreign, especially
American, companies. Most aspects of employee-employer relations are governed by the 1996 Labor Code, which
lists employee and employer rights in all sectors, both public and private, and is in the process of being revised. The
Polish government adheres to the International Labor Organization (ILO) Convention protecting worker rights.
Many of the registered unemployed actually work full- or part-time in the unofficial, gray economy, which adds an
estimated 10-15 percent to the official GDP. Overall, employment in the public sector continues to shrink as the
private sector grows. Employment has expanded in service industries such as information science, hotels and
restaurants, retail trade, real estate and business services, education, and the water treatment and supply sector. The
state-owned sector is still about a quarter of the labor force, though employment in such fields as coal mining, steel,
and energy is declining.
For more detailed labor related information, please consult the Embassys Labor Trends report published by the U.S.
Department of Labor, Bureau of International Affairs.
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4.7.7
178
Free Trade Zone Options
The operation of foreign trade zones (FTZ) in Poland is regulated by the 1997 Customs Law and FTZ regulations
updated in March 2001. Further amendments are on the way as Poland has to harmonize its public aid regulations
with those existing in the EU. Business activities within FTZs are based on the same principles as those applied in
the EU member countries. Foreign-owned firms have the same investment opportunities as do Polish firms to benefit
from foreign trade zones, free ports, and special economic zones.
There were seven free customs areas: Gliwice (southern border), Katowice International Airport (duty-free retail
trade), Malaszewicze/Terespol (eastern border), Mszczonow near Warsaw (since May 2001), Warszawa-Okecie
International Airport (duty-free retail trade within the airport), Szczecin, Swinoujscie, and Gdansk (all Baltic ports).
In March 2001, decisions regarding free customs areas have been moved one level down, from the Council of
Ministers to the Ministry of Finance.
There are also 5 bonded warehouses:
Gdynia (sea port)
Krakow (airport)
Wroclaw (airport)
Katowice (airport)
Gdansk (airport)
Most activity in the free trade zones involves storage, packaging and repackaging. Bonded warehouses and customs
and storage facilities are available. The bonded warehouses can be open to the general public or a private entity (with
a limitation to the authorized entities).
In November 2000, GOP amended the October 1994 Law on Special Economic Zones (SEZs). Under the new rules
investors can receive exemption from income tax and/or other incentives totaling no more than 50 percent of the
outlays spent on investments or creating new work places. The ceiling for small- and medium-sized companies is 65
percent. These limits are lower (40 and 55 percent) for investors in the Krakow SEZ, located in a relatively
prosperous area. Investors may also negotiate with local authorities to receive property tax exemptions.
4.7.8
Foreign Direct Investment
Investment Trends
Foreign companies choose Poland for a variety of reasons, including the large domestic market, skilled work force,
low labor cost, and proximity of markets. Privatization of large companies has played a significant role in total FDI.
While the impact of privatization inflows has declined as the number of large sales decreases, Greenfield
investments increased in number.
Polish Investment Abroad

Poland is a net capital importer. Compared to the amount of foreign capital invested in Poland, Polands foreign
investments are very small. One of the reasons for the low level of Polish foreign investment is the low level of
savings of Polish companies. Polands foreign investments are largest in Great Britain, the United States, Belgium,
Switzerland and Austria. Almost 50 percent of Polands foreign in vestments are connected with the financial sector;
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other investments are in manufacturing, transport, communications and warehouse management; trade and repairs;
mining; and construction.
4.8
4.8.1
TRADE AND PROJECT FINANCING

The Banking System
Polands banking system is the most developed in Central and Eastern Europe, and continues to modernize. With the
gradual installation of new telecommunications equipment and services and the advent of increased competition
between domestic and foreign banks, services are becoming increasingly more user-friendly and efficient.
Although the availability of banking services varies from one bank to another, commercial banks generally offer a
variety of money transfer and cash management services, but they do not usually provide access to cheap credit or
extensive personal banking services. Banks set their own interest rates based on several factors, particularly the
inflation rate, reserve requirements, and the National Bank of Poland (NBP) rates. Special services such as cash
management, counseling, and risk management for foreign currency transactions are not consistent from bank to
bank.
The majority of Polish banks have been privatized. A number of large banks have shares listed on the Warsaw Stock
Exchange, and more are planned for the future. The majority of the Polish banking sectors assets, deposits, and
equity are in the hands of the private sector.
Foreign companies do not have special restrictions on access to local finance as long as funds are used for activities
in Poland. Banks usually request proof of solvency and a business plan, as well as security. Security often takes the
form of a large deposit (equal to the amount of the loan plus interest) that earns a relatively low rate of interest. As
property values in Poland are difficult to determine, banks often require property pledged as security to be worth two
to three times the value of the loan. Loans are also available to smaller businesses that can produce credible offshore
guarantees.
A growing number of foreign banks are establishing banking operations in Poland, either through local subsidiaries,
fully operating branches, or participation in consortium banks, which may also include Polish bank shareholders.
Several U.S. banks have offices in Poland. While some banks have branches all over Poland, many are regional or
have few branches. Businesses with banking needs in varying areas should carefully consider the location of their
bank and availability of branches.
The zloty is, for most purposes, fully convertible. Companies operating in Poland have free access to foreign
currency, and there have been no failures of the banking system to provide hard currency on demand. Profits can be
repatriated by law, including repatriation through bonds and securities.
The banking system is supervised by the central bank, the National Bank of Poland (NBP). The NBP is responsible
for the issue of money and control of the monetary and credit policy in Poland. It grants banking licenses and
foreign exchange permits. Today there are 83 banks in Poland that are privately owned or operate as commercial
companies. In addition, there are 1,295 independent cooperative banks. U.S. banks and branches include Citibank,
Bank of America, American Express (which also operates full travel-related services in Warsaw), GE Capital, Ford,
and General Motors. Fifteen Polish banks have been approved by the Export-Import Bank of the U.S. for bank
guarantees and currently engage in foreign trade financing.
Business counseling ranks high among the features of some foreign banks in Poland, and most encourage their
clients to call before investing. These banks offer counseling services to western firms on regulations and business
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practices in Poland, and some spend considerable time counseling Polish businesses on western business practices,
business plans, and financial plans.
4.8.2
Foreign Exchange Control Risks
Since 1996 domestic business entities have not been required to resell foreign currency payments from abroad to a
foreign exchange bank. Instead, they may have a Polish bank account denominated in the foreign currency and keep
these payments in that account. When these businesses need foreign exchange, the invoice for goods to be purchased
must be presented to prove the currency is needed. Most banks insist that there is no problem acquiring foreign
currency. Several banks guarantee wire transfers within 48 hours, although the general rule is that foreign banks are
faster than domestic banks. A transfer can be as quick as one day if it is between affiliated banks or banks on the
SWIFT system and if the order is placed early in the day. It is best to have a contact person at your bank to monitor
the transaction.
4.8.3
Financing Exports
All commercial banks in Poland offer funds transfers and investment or working capital loans. Banks are limited by
law to their exposure to creditors. Due to these capitalization requirements, large loans must sometimes be shared
between two or more banks. The National Bank of Poland (NBP) influences interest rates for deposits or loans via
the interbank offer rate. Banks charge rates of interest based on the NBP lombard rate plus bank surcharges and front
end fees.
4.8.4
Import Financing
Import financing procedures in Poland adhere to western business practices. All payments go through qualified
foreign exchange banks. The safest method of receiving payment for a U.S. export sale is through an irrevocable
letter of credit (L/C). However, most banks in Poland require the importer to deposit funds prior to issuance of an
L/C. Therefore, for most Polish importers, an L/C is not a financing tool but a payment mechanism.
Difficulties in obtaining U.S. bank guarantees on Polish L/Cs seem to stem from considerations of Polands overall
debt performance. They do not necessarily reflect the actual performance of Polish banks on L/Cs, which is
generally considered excellent. Typically, L/Cs are opened for a period to cover production and shipping, and they
are normally paid within seven working days after receipt of the goods. Cash payment or down payments provide an
extra measure of security for export sales. Polish companies sometimes offer to pay for U.S. exports with cash in
advance, as it can be difficult for them to get Polish bank guarantees. U.S. exporters who request cash advance
payments (usually through money orders or certified bank drafts) need to be aware that many Polish companies are
strapped for cash and may need time to organize their funds. Their delays are not a result of lack of interest, but
more often a result of the need for time to arrange financing or loans. Finally, cash payments often arrive in the U.S.
in installments and not as a single payment.
4.8.5
Export Financing Options
Sources of financing for projects in Poland vary depending upon specific financial requirements and needs.
Financing is found under special programs such as those of the World Bank, the International Finance Corporation
(IFC), the European Bank for Reconstruction and Development (EBRD), and other financial assistance programs
created by western governments. In addition to local financing through Polish banks, self-financing, and financing
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through U.S. sources, the following organizations provide financing and/or insurance for investments made in
Poland:
Export-Import Bank of the United States (Ex-Im Bank)

The Ex-Im Bank provides guarantees of working capital loans for U.S. exporters, guarantees the repayment of loans,
and makes loans to Polish purchasers of U.S. goods and services. The Ex-Im Bank also provides credit insurance
that assists U.S. exporters shipping on short and medium term credits by insuring against nonpayment by foreign
buyers. Working Capital Guarantees cover 90% of the principal and interest on commercial loans to creditworthy,
small and medium sized companies that need funds to buy or produce U.S. goods or services for export. Export
Credit Insurance policies protect against both the political and commercial risks of a foreign buyer defaulting on
payment. There are no discretionary credit limits for short-term comprehensive credit insurance. Coverage is
generally limited to irrevocable letters of credit issued or guaranteed by one of the eight banks that Ex-Im recognizes
as having an international reputation for creditworthiness. Other transactions are examined on a case by case basis.
In addition, Ex-Im Bank offers direct loans, which provide foreign buyers with competitive, fixed rate financing for
their purchases from the United States. For more information on Ex-Im Bank programs, please contact:
The Export-Import Bank of the United States of America
811 Vermont Ave., N.W.
Washington, D.C. 20571
Telephone: (800) 565-EXIM
Fax: (202) 565-3380
Web site: http://www.exim.gov
USDA Export Credit Guarantee Programs

USDA has three credit guarantee programs to support exports of U.S. food and agricultural products to Poland. The
Supplier Credit Guarantee Program (SCGP) is available for Poland. Under the SCGP, USDA guarantees up to 65%
of the principal offered on credit terms of 15, 20, 30, 45, 60, 90, 120, 150, and 180 days. SCGP has a limit of USD
10 million for Poland and does not require a letter of credit.
USDA guarantees payment of letters of credit issued by Polish banks in favor of U.S. exporters under the GSM-102
and GSM-103 program. GSM-102 export credit guarantees of USD 25 million for 90 days to three years through
approved banks are available for Poland. GSM-103 export credit guarantees of up to USD 5 million on credit terms
in excess of three years, but not more than five years, are also available for exports of U.S. breeding livestock.
Further information on these programs can be obtained from:
U.S. Department of Agriculture
Foreign Agricultural Service
Telephone: (202) 720-7115
Companies may also check news releases for these programs on the Foreign Agricultural Service home page at
http://www.fas.usda.gov.
Commercial Bank Financing

Historically commercial bank financing for U.S. exports to Poland was limited due to Polands poor credit rating.
Since the signing of the London and Paris agreements, the number of banks willing to offer financing for U.S.
exports to Poland has increased steadily.
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182
Available Project Financing
The World Bank

The World Bank serves as a source of loans for economic development and reform programs in Poland. The World
Bank finances projects in several main areas: support of Government efforts in the energy sector, improvement of
municipal and basic infrastructure, development of key Polish institutions and systems to support a market oriented
economy, and development of the social and financial sectors.
The World Bank uses guarantees to support and attract private investment for projects that demand large sums of
long term financing, or are in areas of high political risk. Guarantees are used to stimulate investment, and the World
Bank only provides partial guarantees, sharing the risk with private lenders. The World Bank utilizes two types of
guarantees in addition to the possibility of issuing a World Bank loan. A Contractual Compliance Guarantee protects
private lenders against specific risks identified by the host Government, the private party, and the World Bank. A
Partial Credit Guarantee protects private lenders against possible late loan payments and finances extensions of
medium term loans.
A summary of projects and procurement financed by the World Bank is printed in a bimonthly publication that can
be obtained by contacting:
Development Business
UN Department of Public Information
PO Box 5850 Grand Central Station
New York, NY 10163 5850
Telephone: (212) 963-1515
Fax: (212) 963-1381
Further information on World Bank programs can be obtained from:
Public Information Center
World Bank Headquarters
1818 H Street, N.W., Room GB 1
300
Washington, D.C. 20043
Telephone: (202) 477-1234
World Bank Resident Mission
ul. Emilii Plater 53
00-113 Warsaw, Poland
Telephone: (48) (22) 520-8000
Fax: (48) (22) 520-8001
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International Finance Corporation (IFC)

The IFC is a member of the World Bank Group, which provides non-government guaranteed direct investment in
private businesses. Its purpose is to attract foreign and host country investors to supply additional debt and equity
financing. The IFC has been active in Poland since 1987. To date, the IFC has invested over USD 505 million in 26
projects in various sectors. For additional information, please contact:
International Finance Corporation Resident Mission
Warsaw, Poland
Telephone: (48) (22) 520-6100
Fax: (48) (22) 520-7101
The European Investment Bank (EIB)

The European Investment Bank, the European Unions financing institution, contributes toward the integration,
balanced development and economic and social cohesion of the EU Member Countries. To this end, it raises on the
markets substantial volumes of funds which it directs on the most favorable terms towards financing capital projects
according with the objectives of the Union. Outside the Union the EIB implements the financial components of
agreements concluded under European development aid and cooperation policies. Governmental authorities, banks,
municipalities and private companies can borrow from the bank, which supports both large scale and small to
medium-scale projects. For additional information contact:
Information and Communications Department
Secretariat General
100 Boulevard Konrad Adenauer
L-2950 Luxembourg
Fax: +352 43 79 31 89
infopol@eib.org
U.S. Trade and Development Agency (TDA)

TDA promotes U.S. exports through direct assistance in high priority overseas projects to developing and middleincome countries, including Poland. TDA accomplishes this by financing feasibility studies and related planning
services and training programs. Projects supported by TDA must, as a rule, offer good opportunities for U.S. exports
of equipment and services. TDA has feasibility study financing available for public and private sector projects. It
offers grants to foreign governments and foreign corporations for feasibility studies on large-scale public sector and
private sector industrial and infrastructure projects, which are performed by U.S. firms selected in a competitive
bidding process. TDA also will cost-share feasibility studies on large infrastructure and industrial projects with U.S.
exporters, project developers or investors on a reimbursable basis. TDA has provided more than USD 10 million in
feasibility grants to Poland over the last four years, most of it in the public sector.
For further information contact:
U.S. Trade and Development Agency
1621 North Kent St., Suite 200
Arlington, VA 22209
Telephone: (703) 875-4357
Fax: (703) 875-4009
E-mail: info@tda.gov
Web site: http://www.tda.gov
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European Bank for Reconstruction and Development

The European Bank for Reconstruction and Development (EBRD) operates as a development bank as well as a
merchant bank, providing government guarantees and commercial loans. The EBRD lends and invests exclusively in
projects in Central and Eastern Europe, and at least 60% of its funding is targeted to private sector companies or
state-owned companies going through the privatization process. With an emphasis on the environment, the EBRD
requires proposals that demonstrate good products or services with sound market prospects, significant capital
commitments by project sponsors, dependable technology, sound environmental management, a high return on
investment, and overall financial viability of the borrowing enterprise. For further information, please contact:
U.S. Office
London, England
Telephone: (44) 20 7588-4027
Fax: (44) 20 7588-4026
EBRD Poland Office
Warsaw, Poland
Telephone: (48) 22 520-5700
Fax: (48) 22 520-5800
Overseas Private Investment Corporation (OPIC)

OPIC is a self sustaining U.S. government agency that provides investment information, financing, and political risk
insurance for U.S. companies investing in emerging markets like Poland. OPIC offers medium to long term
financing in Poland through its direct loans and guarantees program. Direct loans are reserved for U.S. small
business or cooperatives and generally range in amounts from USD 2-10 million. Loan guarantees are issued to U.S.
lending institutions and range in size from USD 10-75 million, and in certain instances to USD 200 million. OPIC
can insure U.S. investments against political violence, expropriation, and inconvertibility of local currency.
OPIC has initiated a USD 65 million fund called Poland Partners. The fund is designed to provide capital for new
projects, expansion of existing enterprises, and privatization of state owned businesses. Poland Partners will focus
on seven high growth sectors:
Pharmaceutical and personal care products
Automotive after-market
Building supplies and home improvement
Financial services
Franchised services
Plastic molding
Food processing
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OPIC also has developed an environmental fund to provide capital to U.S. companies involved in projects linked to
economic development and the protection of the environment in Poland and other countries in Central and Eastern
Europe. For projects involving warehousing, industrial sites, and distribution, OPIC has established a real estate
fund. For more information, please contact:
Overseas Private Investment Corporation
1100 New York Avenue, N.W.
Washington, DC 20527
Telephone: (202) 336-8799
Fax: (202) 408-9859
Web site: http://www.opic.gov
Major Banks with Correspondent U.S. Banking Arrangements

Bank Polska Kasa Opieki, S.A.
(Pekao SA)
ul. Grzybowska 53/57
00-950 Warsaw
Telephone: (48) 22 656-0780 or 656-0781
Fax: (48) 22 656-0109
Bank Inicjatyw Gospodarczych BIG S.A. (BIG)
ul. Kopernika 36/40, skr. poczt. 6
00-924 Warsaw
Telephone: (48) 22 657-5050 or 657-5000
Fax: (48) 22 626-7180 or 657-5009
Bank Handlowy w Warszawie S.A. (BH)
(Commercial Bank SA)
ul. Koszykowa 54
00-950 Warsaw
Telephone: (48) 22 630-8625
Fax: (48) 22 630-8609
Bank Rozwoju Eksportu, S.A. (BRE)
(Export Development Bank SA)
Plac Bankowy 2, skr. poczt. 728
00-950 Warsaw
Telephone: (48) 22 637-2800
Fax: (48) 22 637-1879
Powszechna Kasa Oszczednosci
Bank Panstwowy (PKO BP)
ul. Nowy Swiat 6/12, skr. poczt. 639-00
950 Warsaw
Telephone: (48) 22 637-1618
Fax: (48) 22 635-5855
Narodowy Bank Polski (NBP)
ul. Swietokrzyska 11/21, skr. poczt. 1011
00-919 Warsaw
Telephone: (48) 22 653-2335 or 653-2571
Fax: (48) 22 653-1321
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4.9.1
186
TRAVEL ISSUES
Local Business Practices
It is customary to greet by shaking hands in Poland. A businesswoman should not be surprised if a Polish man kisses
her hand upon introduction, at subsequent meetings or saying goodbye. American men are not expected to kiss a
Polish womans hand, but may simply shake hands. Business cards are the norm in Poland and are generally given
to each person present in a meeting. As Poles tend to bring more than one person to their meetings, U.S. visitors
should bring plenty of business cards. It is not necessary to have business cards printed in Polish.
Business attire is generally formal, including a suit and tie for men, and a suit or dress for women. Casual wear,
including jeans, is suitable for informal occasions, but more formal dress is usually customary for visiting or
entertaining in the evening. Flowers, always an odd number, are the most common gift among friends and
acquaintances. Sunday is the traditional day for visiting family and friends in Poland.
4.9.2
Security Advisories
The principal problem encountered by visitors to Poland is property crime. Pick pocketing, hotel break-ins and car
theft are common, particularly in areas of heavy tourist activity. Visitors are advised to pay particularly close
attention to their belongings while in airports and railway stations, as well as on public transportation. Violent crime
remains rare, but is growing. Consult the Consular Information Sheet, prepared by the U.S. Department of State, for
updates. This information is available from the U.S. Department of States Web site (http://travel.state.gov).
There are no visa requirements for U.S. citizens arriving in Poland for business purposes of up to 90 days. Business
visitors on temporary duty are required to obtain a work permit if they will be in Poland longer than 90 days.
Applications for this permission must be filed with the State/Provintial Employment Office, Work Migration
Department (Wojewodzki Urzad Pracy, Dzial Migracji Zarobkowej) by prospective employers six weeks before the
start of employment. If the decision is positive, the office will mail a Promesa (an assurance of permit issuance) to
the employer. The worker uses the Promesa to apply for a work visa at a Polish Embassy or Consulate abroad.
People already in Poland are obliged to leave the territory of Poland to apply for their work visas. The work visa fee
is USD 10 for the application and USD 128 for the visa, payable in U.S. dollars. After arriving in Poland with the
visa, the worker must obtain a work permit from the State/Provintial Employment Office within seven days of
commencing work. The work permit fee is 800 Polish zloty. Work permits are issued for up to 12 months. Work
permits may be extended at the request of the employer. The extension fee is 400 Polish zloty. The workers must
also obtain a residency permit if they will be in Poland longer than 90 days. Application for residency permit must
be filled with Mazowiecki Urzad Wojewodzki, Wydzial Spraw Obywatelskich i Migracji, Odzial dla
Cudzoziemcow. The application fee is 300 PLN (about 75 USD) and resident card fee is 50 PLN (about 13 USD).
Residency permits are issued individually for a period of 6-24 months. The extension fee is 150 Polish zloty.
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For more information please contact:

Wojewodzki Urzad Pracy w Warszawie
(State/Provintial Employment Office in Warsaw)
Dzial Migracji Zarobkowej
(Work Migration Department)
ul. Mlynarska 16
01-205 Warsaw
Telephone: (48) 22 631-50-05
Fax: (48) 22 631-42-03
E-mail: migracja@wup.mazowsze.pl
Web site: www.wup.mazowsze.pl
Contact: Joanna Pilka, Chief Work Migration Department
Mazowiecki Urzad Wojewodzki
(Marzovian Voivodship Office)
Wydzial Spraw Obywatelskich i Migracji
(Migration and Citizens Service Department)
Oddzial ds. Cudzoziemcow
(Section for Foreigners)
ul. Dluga 5
00-263 Warszawa
Web site: www.mazowsze.uw.gov.pl
Contact: Maria Kula-Ziemian, Chief Section for Foreigners
Telephone: (48) 22 831-48-18 or 695-67-77
Fax: (48) 831-53-73
Contact: Malgorzata Piotrak, Director Migration and Citizens Service Department
Telephone: (48) 22 695-65-75
Fax: (48) 695-66-04
E-mail: Malgorzata.Piotrak@mazowsze.uw.gov.pl
4.9.3
Local Holidays Observed
The following public holidays are observed in Poland:
New Years Day (January 1)
Easter Monday (day after Easter)
Labor Day (May 1)
Constitution Day (May 3)
Corpus Christi (late May/early June)
Assumption of the Virgin Mary (August 15)
All Saints Day (November 1)
Independence Day (November 11)
Christmas Day (December 25)
Boxing Day (December 26)
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Poland is located entirely in the Central European Time (CET) zone, the same time zone as continental Western
Europe. Business hours are generally from 8:30 a.m. to 5:00 p.m., Monday through Friday.
4.9.4
Infrastructure for Conducting Business
Transportation by air to and from Poland is excellent. International carriers fly to Poland many times per day from
all over the world, and LOT Polish Airlines has direct flights to Warsaw from Chicago, New York and Newark.
Delta, American, Northwest and United have code share relationships with various European carriers that service
Poland through their European hubs. No U.S. airline services Poland directly at this time.
Transportation within Poland is convenient. Flights operate between major cities and railway routes are extensive
and reliable. Rental cars are abundant, but due to significantly increased traffic over the past few years and a
highway system that has not kept up, driving between Polish cities, especially at night, can be quite dangerous.
First class business hotels are available in most major Polish cities, and many are located in the heart of business
districts. Major western hotels offer air conditioned rooms with direct dial telephone capability. Many hotels offer a
business center with computers, fax, business assistance services, and Internet capabilities. Almost all business
hotels take major credit cards. Availability and room rates are seasonal and competitive, and business travelers are
advised to check and confirm rates at hotels in advance of their travel.
AT&T, Sprint, and MCI calls can be placed from Poland. International direct dialing around the world is possible.
The Polish telephone system in some areas is still rotary dial, making it difficult to use automated touch-tone
telephone services in the United States.
Poland uses the metric system of weights and measures. Electrical appliances use 220 volts AC, 50Hz, with
continental European (two-prong) outlets.
Temporary Entry of Personal Laptops and Other Business Materials

There are no restrictions on the temporary entry of personal laptop computers or other business materials into Poland.
4.9.5
Country Data
Population
38,230,100
Religion
More than 90% Roman Catholic
Government System
Parliamentary Democracy
Language
Polish
Length of Work
Week
Monday through Friday
Macro-Accessibility
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4.10.1
189
KEY CONTACTS
U.S. Embassy Trade-Related Contacts
Commercial (U.S. Commercial Service)

Edgar Fulton, Commercial Counselor
Robert J. Donovan Jr., Commercial Attache
Alain Bobet, Commercial Representative
ul. Poznaska 2/4
00-680 Warsaw
Telephone: (48) 22 625-4374
Fax: (48) 22 621-6327
E-mail: Warsaw.Office.Box@mail.doc.gov
Web site: www.buyusa.gov/poland
Agriculture
Wayne Molstad, Agricultural Counselor
Aleje Ujazdowskie 29/31
00-540 Warsaw
Telephone: (48) 22 628-3041
Fax: (48) 22 628-1172
Economic
Richard Rorvig, Economic Counselor
00-540 Warsaw
Telephone: (48) 22 628-3041
Fax: (48) 22 625-7494
Office of Defense Cooperation
Col. Stanley Prusinski
00-540 Warsaw
Telephone: (48) 22 628-3041
Fax: (48) 22 625-3478
American Consulate General Krakow
Kenneth Fairfax, Consul General
ul. Stolarska 9
31-043 Krakow
Telephone: (48) 12 424-5100
Fax: (48) 12 424-5103
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190
Chambers of Commerce and Bilateral Business Councils
National Chamber of Commerce of Poland

Mr. Andrzej Arendarski, President
ul. Trebacka 4
00-074 Warsaw
Telephone: (48) 22 630-9600
Fax: (48) 22 827-4673
E-mail: infodata@kig.pl
Web site: www.kig.pl
American Chamber of Commerce in Poland
Ms. Dorota Dabrowska, Executive Director
ul. Emilii Plater 53, Warsaw Financial Center, XIII floor
00-116 Warsaw
Telephone: (48) 22 520-5999
Fax: (48) 22) 520-9998
E-mail: office@amcham.com.pl
Web site: www.amcham.com.pl
Country Government Offices

Ministry of Infrastructure
ul. Chalubinskiego 4/6
00-928 Warsaw
Telephone: (48) 22 630 1000
Fax: (48) 22 830-0261
E-mail: info@mi.gov.pl
Web site: www.mi.gov.pl
Ministry of Environmental Protection
ul. Wawelska 52/54
00-922 Warsaw
Telephone: (48) 22 579-2900, 579-2403
Fax: (48) 22 579-2450
E-mail: info@mos.gov.pl
Web site: www.mos.gov.pl
Ministry of Agriculture and Rural Development
ul. Wspolna 30
00-930 Warsaw
Telephone: (48) 22 623-1000, 628-5745
Fax: (48) 22 629-2894
E-mail: kancelaria@minrol.gov.pl
Web site: www.minrol.gov.pl
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Ministry of Finance
00-916 Warsaw
Telephone: (48) 22 694-3962, 695-5555
Fax: (48) 22 826-6352
E-mail: info@mofnet.gov.pl
Web site: www.mofnet.gov.pl
Ministry of Economy, Labor and Social Policy
Pl. Trzech Krzyzy 5
00-950 Warsaw
Telephone: (48) 22 693-5000 or 693-5013
Fax: (48) 22 693-4001
E-mail: bkis@mg.gov.pl
Web site: www.mg.gov.pl
Ministry of State Treasury
ul. Krucza 36
00-522 Warsaw
Telephone: (48) 22 695 8000, 695 9000, 628-1689 or 695-8590
Fax: (48) 22 628-1914, 628 0872, 621-3361
E-mail: minister@msp.gov.pl
Web site: www.mst.gov.pl
Polish Agency for Foreign Investment
Mr. Adam Pawlowicz, President
Aleja Roz 2
00-559 Warsaw
Telephone: (48) 22 334-9800
Fax: (48) 22 334-9999
E-mail: post@paiz.gov.pl
Web site: www.paiz.gov.pl
Central Customs Office
00-916 Warsaw
Telephone: (48) 22 811-0128
Fax: (48) 22 614-2627
E-mail: info@guc.gov.pl
Web site: www.guc.gov.pl
Central Statistics Office
Al. Niepodleglosci 208
00- Warsaw
Telephone: (48) 22 608-3000
Fax: (48) 22 608-3001
E-mail: dissem@stat.gov.pl
Web site: www.stat.gov.pl
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192
Market Research Firms
SMG/KRC Poland-Media S.A.

ul. Nowoursynowska 154a
02-797 Warsaw
Telephone: (48) 22 545-2000
Fax: (48) 22 545-2100
E-mail: office@smgkrc.pl
Web site: www.smgkrc.pl
Pentor Group - Instytut Badania Opinii Sp. z o.o.
ul. Domaniewska 41
02-672 Warsaw
Telephone: (48) 22 606-1460
Fax: (48) 22 606-1479
E-mail: pentor@pentor.com.pl
Web site: www.pentor.com.pl
IQS and QUANT Group
ul. Lekarska 7
00-610 Warsaw
Telephone: (48) 825-0933, 827-7586, 825 7587
Fax: (48) 22 825-4870
E-mail: iqs@polbox.pl
Web site: www.iqs-quant.com.pl
4.10.4
Commercial Banks
PKO BP
ul. Pulawska 15
00-975 Warsaw
Telephone: (48) 22 521-8629, 521-8641, toll free: 0800 120 139
Fax: (48) 22 521-8642
E-mail: informacje@pkobp.pl
Web site: www.pkobp.pl
Citibank (Poland) S.A.
ul. Senatorska 16
00-923 Warszawa
Telephone: (48) 22 657-7200, 690-4000, 0801 32 2484
Fax: (48) 657-7580
E-mail: listybh@citicorp.com
Web site: www.citibank.com.pl
GE Capital Bank S.A.
ul. Waly Jagiellonskie 36
80-853 Gdansk
Telephone: (48) 58 301-2221, 304-0781
Fax: (48) 58 300-7702, 304-0701
E-mail: interactive form on the Web site
Macro-Accessibility
193
Web site: www.gecapital.com

Bank of America (Polska) S.A.
Al. Jana Pawla II 25
00-854 Warszawa
Telephone: (48) 22 654-2500
Fax: (48) 22 654-2515
E-mail: maria.goc@bankofamerica.com
Web site: www.bankofamerica.com
BIG Bank Gdanski S.A.
ul. Kopernika 36/40
00-924 Warsaw
Telephone: (48) 22 657-5285
Fax: (48) 22 657-5290
E-mail: not available
Web site: www.big.com.pl
Bank Pekao S.A.
Pl. Bankowy 2
00-095 Warsaw
Telephone: (48) 22 531-1000, infoline: 0801 365 365
Fax: (48) 22 635-7784
E-mail: info@pekao.com.pl
Web site: www.pekao.com.pl
4.10.5
Multilateral Development Bank Offices in Poland

Warsaw Financial Center
13th Floor
00-113 Warsaw
Telephone: (48) 22 520-5700
Fax: (48) 22 520-5800
E-mail: not published
Web site: www.ebrd.com
World Bank
9th Floor
00-113 Warsaw
Telephone: (48) 22 520-8000
Fax: (48) 22 520-8001
E-mail: jwojciechowicz@worldbank.org
Web site: www.worldbank.org.pl
Macro-Accessibility
194
International Finance Corporation

Resident Mission in Poland
9th Floor
00-113 Warsaw
Telephone: (48) 520-6100
Fax: (48) 22 520-6101
E-mail: lcarter@ifc.org
Web site: www.ifc.org
4.10.6
Contacts in the U.S.
U.S. Department of Commerces Trade Information Center (TIC)

Telephone: (800) USA-TRADE
U.S. Department of Agriculture
Foreign Agricultural Service
Agricultural Export Services Division
Trade Assistance and Promotion Office
1400 Independence Avenue, S.W.
Room 4949 South Bldg., Stop 1052
Washington, D.C. 20250-1052
Telephone: (202) 720-7420
Fax: (202) 690-0193
E-mail: info@fas.usda.gov
Web site: www.fas.usda.gov
4.10.7
Trade Associations
Polish Chamber of Chemical Industry

ul. Czackiego 15/17
00-043 Warszawa
Telephone: (48) 22 828 7507
Fax: (48) 22 829 7339
E-mail: pipc@pipc.org.pl
Website: www.pipc.org.pl
Polish Chamber of Information Technology
and Telecommunications
(Polska Izba Informatyki I Telekomunikacji)
ul. Nowogrodzka 31, Room 204
00-503 Warsaw
Telephone: (48) 22 628-2260, 628-2406
Fax: (48) 22 628-5536
E-mail: biuro@piit.org.pl
Web site: www.piit.org.pl
Macro-Accessibility
195
Polish Chamber of Commerce for Electronics

and Telecommunications
(Krajowa Izba Gospodarcza Elektroniki I Telekomunikacji)
ul. Stepinska 22/30
00-739 Warsaw
Telephone: (48) 22 851-0309
Fax: (48) 22 851-0300
E-mail: kigeit@kigeit.org.pl
Web site: not available
Polish Homebuilders Association
(Polskie Stowarzyszenie Budowniczych Domow)
ul. Foksal 2
00-366 Warsaw
Telephone: (48) 22 828 3044
Telephone/fax: (48) 22 827-7750
E-mail: psbd@psbd.com.pl
Web site: www.psbd.com.pl
Polish Association of Sanitary, Heating,
Gas and Air Conditioning Enterprises
(Polska Korporacja Techniki Sanitarnej,
Grzewczej, Gazowej I Klimatyzacji)
ul. Koniczynowa 11
03-612 Warsaw
Telephone: (48) 22 678-9893, 678-7929
Fax: (48) 22 678-2076
E-mail: sggik@sggik.pl
Web site: www.sggik.pl
The Association of Polish Architects (SARP)
ul. Foksal 2
00-950 Warsaw
Telephone: (48) 22 826-7439, 827-8710
Fax: (48) 22 826-7456
E-mail: warszawa@sarp.org.pl
Web site: www.sarp.org.pl
Polish Pharmaceutical and Medical
Equipment Producers Chamber
(Polska Izba Przemyslu Farmaceutycznego
I Sprzetu Medycznego
POLFARMED)
ul. Lucka 2/4/6
00-845 Warsaw
Telephone: (48) 22 654-5351, 654-5352
Fax: (48) 22 654-5420
E-mail: biuro@polfarmed.com.pl
Web site: www.polfarmed.com.pl
Macro-Accessibility
196
Association of Leasing Companies in Poland

Konferencja Przedsiebiorstw Leasingowych
ul. Filtrowa 71a apt. 3
02-055 Warsaw
Telephone/fax: (48) 22 825-1943
E-mail: kplzp@it.com.pl
Web site: www.leasepol.com.pl
Packaging Materials and Packaging Manufacturers Association
Stowarzyszenie Producentow I
Uzytkownikow Materialow
Opakowaniowych I Opakowan (PROPAK)
ul. Czackiego 3/5
00-950 Warsaw
Telephone: (48) 22 828-6426, 828-2715
Fax: (48) 22 773-1932, 828-6426
E-mail: biuro@propak.pl
Web site: www.propak.pl
Economic Chamber of Energy and Environmental Protection
(Izba Gospodarcza Energetyki I Ochrony Srodowiska)
ul. Krucza 6/14, room 115
00-950 Warsaw
Telephone: (48) 22 621-6572
Fax: (48) 22 628-7838
E-mail: igeos@energoprojekt.pl
Polish Power Plant Association
(Towarzystwo Gospodarcze Polskie Elektrownie)
ul. Krucza 6/14
00-950 Warsaw
Telephone: (48) 22 629-0409
Fax: (48) 22 628-6000
E-mail: tgpe@energoprojekt.pl
Polish Chamber of Tourism
(Polska Izba Turystyki)
ul. Astronomow 3
01-415 Warsaw
Telephone: (48) 22 836-9971
Fax: (48) 22 836-9973
E-mail: bwpit@pit.org.pl
Web site: www.pit.org.pl
197
5
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END

Philip M. Parker-Renewable Energy Equipment in Poland - A Strategic Reference, 2007 (2007)

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Philip M. Parker-Renewable Energy Equipment in Poland - A Strategic Reference, 2007 (2007)

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Renewable Energy Equipment

Philip M. Parker, Ph.D.

2007 Icon Group International, Inc.

2007 Icon Group International, Inc.

About Icon Group International, Inc.

2007 Icon Group International, Inc.

INTRODUCTION & METHODOLOGY.............................................................................1

What Does This Report Cover?

How to Strategically Evaluate Poland

Latent Demand and Accessibility in Poland

RENEWABLE ENERGY EQUIPMENT IN POLAND ......................................................5

Latent Demand: Best Prospects

Accessibility: U.S. Presence

Latent Demand: Target Buyers

3 FINANCIAL INDICATORS: STEAM, GAS AND HYDRAULIC TURBINES AND

Financial Returns in Poland: Asset Structure Ratios

2007 Icon Group International, Inc.

2007 Icon Group International, Inc.

Economic Relationship with the United States ...................................................................................... 146

2007 Icon Group International, Inc.

Available Project Financing ................................................................................................................... 182

DISCLAIMERS, WARRANTEES, AND USER AGREEMENT PROVISIONS .........197

Disclaimers & Safe Harbor

Icon Group International, Inc. User Agreement Provisions

2007 Icon Group International, Inc.

INTRODUCTION & METHODOLOGY

HOW TO STRATEGICALLY EVALUATE POLAND

2007 Icon Group International, Inc.

Introduction & Methodology

Framework for Prioritizing Countries

Accessibility/Supply Averse Firm

2007 Icon Group International, Inc.

Introduction & Methodology

LATENT DEMAND AND ACCESSIBILITY IN POLAND

Openness to Trade in Poland

Openness to Direct Investment in Poland

Local Marketing and Entry Strategy Alternatives

Local Human Resources

2007 Icon Group International, Inc.

Introduction & Methodology

2007 Icon Group International, Inc.

RENEWABLE ENERGY EQUIPMENT IN POLAND

LATENT DEMAND AND ACCESSIBILITY: BACKGROUND

LATENT DEMAND: ASPECTS OF INTEREST

2,175,559 MWh generated from water energy.

135,291 MWh from wind mills.

104,465 MWh from biogas.

877,009 MWh from co-firing installations.*

* Registered by Energy Regulation Office URE on August 8, 2006.

2007 Icon Group International, Inc.

Renewable Energy Equipment

Source: Wind Atlas of Poland

2007 Icon Group International, Inc.

Renewable Energy Equipment

Source: Polish Geothermal Association

Laws and Regulations

2007 Icon Group International, Inc.

Renewable Energy Equipment

LATENT DEMAND: BEST PROSPECTS

2007 Icon Group International, Inc.

Renewable Energy Equipment

Growing Role of Biomass in Renewable Energy, 2005

Source: Institute for Renewable Energy, Warsaw