Transcript Slajd 1

Israel – Poland
How to finance your investments in Poland.
Banks. Stock Exchange. Bonds and other opportunities
Tel Aviv. 14th June 2012
Author: Polex; image under Creative Commons Lcence, Wikimedia Commons
Israel - Poland Macroeconomic Background
ISRAEL
Unit
Period
Value
POLAND
Unit
Period
Value
billions of €
2011
174.71
GDP volume
billions of €
2011
382.50
% y/y
2011
4.80
GDP growth rate
% y/y
2011
4.30
Annual inflation rate
%
2011
3.20
Annual inflation rate
%
2011
4.60
Unemployment rate
%
2011
5.60
Unemployment rate
%
2011
12.50
% y/y
2011
3.20
Annual industrial output
% y/y
2011
7.70
Total imports
billions of €
2011
50.78
Total imports
billions of €
2011
150.50
Total exports
billions of €
2011
44.95
Total exports
billions of €
2011
135.80
FX reserves
billions of €
2011
76.63
FX reserves
billions of €
2011
70.20
GDP volume
GDP growth rate
Annual industrial output
Source: Embassy of The Republic of Poland in Tel Aviv
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Sustainable growth of Polish economy supported by strong
political position
Poland – the best
perfomer in the
EU
Polish GDP (PLNm)
Poland becomes a
EU member
NATO
OECD
Polish
presidency in
the EU
Schengen
Area entry
WTO
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: GUS (Central Statistical Office of Poland), Ministry of Economy
Jul-15
(c) Dąbrowski Finance
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Poland – the leader of CEE
 Poland is an unquestionable economic leader in the
region, which is confirmed by the GDP data or Warsaw
Stock Exchange performance.
 Against a backdrop of the EU states Poland seems to
run its fiscal policy in the wisest way (one of the lowest
GG debt/GDP ratios).
 During the sub-prime crisis Poland was the only
country in the EU to have reported positive GDP y/y
growth rate.
Country/Year (€m)
Poland
Greece
Czech Republic
Romania
Hungary
Slovakia
Bulgaria
Slovenia
Lithuania
Latvia
Estonia
1993
80 343.50
88 569.20
33 159.70
23 983.20
33 641.30
11 525.74
9 252.51
11 330.84
2 413.18
2 075.24
1 481.38
2010
354 312.70
227 317.90
149 313.20
121 942.40
97 094.60
65 887.41
36 033.48
35 415.79
27 535.41
17 974.29
14 305.26
2011
370 008.70
215 088.20
154 913.00
136 479.90
100 777.80
69 058.20
38 483.20
35 638.60
30 705.40
20 049.60
15 973.00
Source: Eurostat

Over the last 23 years Poland underwent a transition from weak, planned economy to the world's 21st
strongest market economy. Poland managed to turn this bumpy road into a valuable lesson which we are
able to pass on:
Queue waiting to enter a store. a typical view
in Poland in 1950s and 1980s
One of the Warsaw shopping malls in 2012
Copyright: Public Domain. Wiki Commons
Jul-15
Author: Adamon. Copyright: GNU FDL licence
(c) Dąbrowski Finance
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Credit policy of banks – corporate loans


Nominal size of corporate debt was about 19% higher at the end
of February 2012 than at the end of December 2009, loans to
SMEs increased in this period by 24%, while loans to businesses
by 12%.
The value of impaired loans increased by 9% during this period,
including the increase of impaired loans for SMEs by 17%. In
the case of loans to large enterprises the value of impaired loans
decreased by 7%.
Credits for large enterprises
(at the end of February 2012)
Investement
34%
Operating
46%
Other
12%
Loans to non-financial enterprises
(PLN bn)
Real estate
8%
Credits for SMEs
(at the end of February 2012)
200
Investment
30%
150
100
Operating
38%
50
0
2009-12
2010-06
MSP
SME
2010-12
2011-06
Real estate
24%
2011-12
Other
8%
Duże przedsiębiorstwa
Large
enterprises
Source: PFSA
(c) Dąbrowski Finance
5
Polish Banking Sector
Quarterly net earnings of the banking sector in
(PLN bn)
5
5
4
4
3
3
2
2
1
1
0
Mortgage loans 2006 - 2011 (PLN bn)
350
300
250
200
150
100
50
0
2006
2007
2008
Total housing credits
Source: NBP
2009
2010
2011
New credits
Source: ZBP

It is worth noticing that even after the crisis in 2008 net earnings of Polish banks remain positive

After the crisis amount of new loans granted each year began to fall down.

Provisions ratios of Polish banks are one of the lowest in EU
Jul-15
(c) Dąbrowski Finance
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Capital market in Poland (I)


In recent years the Warsaw Stock Exchange
became a leader in the region of Central
and Eastern Europe. The WSE is the only
stock market which has restored its
capitalization from the pre-crisis period. In
January 2007 the market value of listed
companies amounted to EUR 156 billion, while
in May 2011 already 152 billion.
The Warsaw Stock Exchange holds first place
in terms of turnover. With third place in
2008, the Warsaw Stock Exchange moved up to
first place with over 61 billion annual turnover
of stock.
200
180
160
140
120
100
80
60
40
20
0
Market capitalization of selected stock markets
in CEE 2007 - March 2012 (€ bn)
Warsaw Stock Exchange
CEESEG Vienna
Athens Exchange
CEESEG Budapest

Currently on the main market there are 433 companies listed. In the period 2007-2011 on a regulated market 161
companies debuted (2007: 81, 2008: 33, 2009: 13, 2010: 34, 2011: 38, 10 of which have moved from alternative
market).

The value of accumulated capital in the IPO transactions in the period amounted to 15.1 billion euros (PLN 65
billion).

In 2011. the Warsaw Stock Exchange held the first place in Europe in terms of number. and third in terms of value of
IPOs.
Source: WSE
(c) Dąbrowski Finance
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Capital market in Poland (II)

The WSE – basic facts (20th May 2012):


Market capitalization € bn
Number of listed companies: 433 on
main market, 375 on alternative market
Name of stock exchange
2009
2010
2011
105.16
142.27
107.48
125.04
CEESEG - Vienna
79.51
93.94
65.68
74.19
CEESEG - Prague
31.27
31.92
29.20
31.32
Warsaw Stock Exchange
March 2012

Market capitalization: EUR 161.83 bn

The average value of P/BV: 1.38
Athens Exchange
78.50
50.38
26.02
27.71

The average value of P/E: 15.20
CEESEG - Budapest
20.89
20.62
14.63
16.72

Dividend yield: 1.10%
Bucharest Stock Exchange
8.40
9.78
10.82
13.13
Bulgarian Stock Exchange
6.03
5.50
6.36
6.32
CEESEG - Ljubljana
8.46
7.03
4.87
4.92
Bratislava Stock Exchange
3.61
3.38
4.18
4.18
WSE is characterized by preferred values of P / E
and P / BV indices.
Values of P/E (left axis) and P/BV (right axis) on the WSE
(2005 - May 2012)
40
4
30
3
20
2
10
1
0
2005
0
2006
2007
2008
2009
P/E
C/Z
Source: WSE, FESE
2009
2010
2011
2012
P/BV
C/WK
(c) Dąbrowski Finance
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Non-Tresury bonds in Poland
Non-Tresury bonds in Poland (PLN m)
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Municipal bonds
Bank bonds
Corporate bonds
Short-term debt
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011

The capitalization of non-treasury bonds issued in Poland increased at the end of 2011 in comparison with
the end of 2002, almost five times - from PLN 19 837 m to PLN 97 PLN m.

The yearly mean increase in the capitalization of non-Treasury bonds amounted to 22%. Periods of market
growth: slow growth in 2002-2005 at the level of 6.5-10% per year, acceleration in 2006-2007, slowing of
growth to 5-7.5% in 2008-2009.

As with all non-Treasury bond market in Poland, long-term corporate bond market in the years 2002-2011
increased its capitalization almost five times from PLN 4 530 m to PLN 24 185 m.

The volume of corporate bonds decreased as compared with the previous year only in 2009 - due to the
crisis in financial markets.
Source: Fitch Polska
(c) Dąbrowski Finance
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Bond market - 1Q 2012
Non-Treasury bonds in Poland –
1Q 2012
(PLN bn)
Municipal
bonds
PLN 14.4 bn
Bank bonds
PLN 37.8 bn
Short-term
debt
PLN 22.5 bn
Corporate
bonds
PLN
26.6 bn
 In 1Q 2012 non-Treasury bond market
capitalization in Poland increased by 4%.
 Corporate bonds accounted for 26.3% of all
non-Treasury debt instruments.
 Compared to the end of 2011, the
capitalization of corporate bonds increased by
over PLN 2 430 m (10% on quarterly basis).
 The value of non-Treasury debt instruments
traded on Catalyst was PLN 40 934 m which
represents over 40% of the total market of
such instruments in Poland.
Source: Fitch Polska
(c) Dąbrowski Finance
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Corporate bonds on Catalyst
 About 40% of all non-Treasury debt instruments is listed on the Catalyst market and this
proportion is growing. More than 230 corporate bond issues and cooperative bonds are traded
on the market. They are issued by 111 entities.
 The volumes are very diverse. The nominal value of the lowest issue amounts to PLN 500 thousand
and the largest to more than PLN 11.7 bn. Average batch size is PLN 150 m while median PLN
15 m.
 In the case of bonds listed on the Catalyst 80.8% have a
variable interest rate, 17.8% pays fixed rate and 1.4% (3
series) is a zero-coupon bond.
 The amount of interest on each series closes with a
range from 5.37% to 15%. The average of interest rate is
10.11%, while median 10%
Source: Catalyst
(c) Dąbrowski Finance
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The activities of PE / VC funds in Poland
 The year 2011 was a record in terms of PE/VC investments in
Poland. Collectively, funds invested EUR 680 million in 57
companies in various stages of development.
The percentage share of each
sector in the investment of
PE / VC in 2011
 Compared to the previous year VC segment showed the greatest
dynamics and invested EUR 26 million (growth - 847% on yearly
basis).
 In 2011 the largest increase was recorded in investments in
companies in later stages of development (1101%). In 2011 funds
invested EUR 15.2 million in companies at this stage of
development.
 Substantial increase manifested itself also in the segment of startups, where investments amounted to EUR 10.7 million, which
means an increase of 594% in comparison to last year.
 In 2011 a total of EUR 674 thousands was invested in four
companies in the seed stage.
Consumer
services
23%
Communica
tions 31%
Financial
services 9%
Life science
12%
Consumer
goods &
retail 25%
 Last year, there has been no investments in refinancing capital.
Source: European Private Equity and Venture Capital Association (EVCA)
(c) Dąbrowski Finance
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Grants and subsidies from EU
Applications for funding after the formal evaluation
Grant agreements
The level of the use
of appropriations
2007-2013
Number
Value of eligible
expenses (PLN m)
Value
(EU and national
funding in PLN
thousands)
OP Innovative Economy
27 339
129 281,61
81 043 614
9 271
46 841 192
26 049 969
74,2%
OP Infestructure and
Enironment
2 711
193 120,29
152 241 360
1 685
116 386 557
84 967 212
71,9%
OP Human Resources
139 268
128 243,21
123 086 791
32 893
35 149 451
29 184 760
70,9%
OP Technical Support
OP Development of the
Eastern Poland
289
1 642,15
1 395 823
281
1 669 714
1 419 257
66,3%
258
11 494,91
8 099 633
145
8 860 216
6 478 379
65,3%
975
5 787,52
4 910 627
238
1 327 274
1 109 689
77,8%
469 569,69
368 777 848
44 513
210 234 405
149 209 266
71,8%
Operational Prgramme
OP European Territorial
Cooperation
Sum
170 840
Source: www.funduszeeuropejskie.gov.pl

Number
Value of eligible
expenses
(PLN thousends)
UE funding
(PLN thousends)
There are still ca. 28% of all grants and subsidies avaiable to use.
(c) Dąbrowski Finance
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Dąbrowski Finance cooperation with Israel (I)
Our customers in Poland and in
other European markets:
 Dąbrowski
Finance
has
wellestablished business relations with
Israeli investors and entrepreneurs.
 We are a member of Poland Israel
Chamber of Commerce since our
establishment in 2010.
 Dąbrowski Finance currently works
with several Israeli investors on their
projects located in Poland.
We have also established business relations
with USA and China
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Dąbrowski Finance cooperation with Israel (II)
 Dąbrowski Finance represents the
Israeli Clients in projects concerning
arrangement of financing (both debt
and equity).
Debt
Capital
Markets**
Expansion
Capital
Corporate
Finance
Real Estate*
M&A
Mezzanine
 At every stage of the process. DF
cooperates closely with the customer
both in drawing up documentation and
applying for financing.
 DF actively supports the customer in
creating
credit
documentation.
especially in defining covenants. i.e.
obligations to act or to refrain required
by the bank.
* With licensed real estate agencies
** With brokerage houses
(c) Dąbrowski Finance
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DF Team dedicated to Israeli transactions (I)
Jarosław Dąbrowski
Founder and Managing
Partner
Zbigniew Karwowski
Vice President of the Board
Marcin Zieliński
Partner
Over 16 years of experience
in the financial sector
16 years of experience in
the financial sector
15 years of
experience in the
financial sector
Banking. finance and
investment
Banking. leasing and
factoring
Investment funds and
banking
The University of Warsaw.
Faculty of Law and
Administration
Pedagogical University of Cracow.
Degree in Modern History
Edinburgh University
Management School
Georgetown University in
Washington
University of Navarra (IESE) in
Barcelona
Warsaw School of
Economy. Faculty of
Finance and Banking
University of Wisconsin in the
College Business Administration.
16
DF Team dedicated to Israeli transactions (II)
Agata Geppert
Research & Analysis Manager
Adrian Misiewicz
Analyst
Andrzej Pryczynicz
Junior Analyst
4 years of experience in the
financial sector
2 years of experience in the
financial sector
2 years of experience in the
financial sector
Banking. finance and investment
Capital markets. corporate
finance
Banking. finance and investment
Warsaw School of Economics.
Faculty of Finance and Accounting
Warsaw School of Economics.
Faculty of Finance and Accounting
Warsaw School of Economics.
Faculty of Finance and Accounting
(c) Dąbrowski Finance
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Disclaimer
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to the best knowledge of the author and on the basis of reliable sources. All the presented
opinions and assessments of the current market situation express the opinions of the author
at the moment of preparing the presentation
DF Ltd. shall not bear responsibility for decisions met on the basis of the contents of the
presentation. The Presentation is of solely informative character and its contents should not
be regarded as advertisement. offer or endorsement to buy or sell any services or products
The document shall be treated solely as marketing material. it should not be regarded as an
offer. advice or investment recommendation or independent financial analysis
All trademarks and brand names mentioned in the presentation are subject to relevant legal
provisions. The trademarks or brand names might have been reserved solely for information
purposes. Using the trademarks included in the presentation requires the explicit written
consent of the authorized entity
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We strongly invite you to do business with DF
in Poland and CEE
Dąbrowski Finance Ltd.
Trust & Professionalism
Metropolitan Building
1 Piłsudski Square. 3rd floor
00-078 Warsaw
Jarosław Dąbrowski
Mob.: +48 693 333 555
Tel.: + 48 22 344 04 00
Fax: + 48 22 344 04 10
E-mail: [email protected]
www.dabrowskifinance.eu
Author: Dariusz Boczek; image covered by Creative Commons Lcence, Wikimedia Commons
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