20120523 Ceis Poland
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20120523 Ceis Poland

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20120523 Ceis Poland 20120523 Ceis Poland Presentation Transcript

  • CONFIDENTIALInternationalization ofbusinesses to PolandWarsaw, 23 May 2012
  • 20120523 CEIS - Poland Key messages • Internationalization is key for the survival of Portuguese companies and Portuguese economy as a whole© Copyright 2012 CEIS – All rights reserved CONFIDENTIAL • Central Eastern Europe, in particular Poland, is an actractive market due to size, proximity and existing opportunities • Although there are plenty of opportunities, there are also some obstacles and mistakes have to be avoided 1
  • 20120523 CEIS - Poland Agenda of the meeting • Why? 20m© Copyright 2012 CEIS – All rights reserved CONFIDENTIAL • Where? 40m • How? 1h 30m 2h 30m 2
  • 20120523 CEIS - Poland Internationalization is key for companies, special those in declining markets Advantages of internationalization (not exhaustive) Importance of internationalization focus • Bigger market / Increased revenues % of companies that rely on international growth / expansion for success • Optimized production and capacity© Copyright 2012 CEIS – All rights reserved 100% • Better negotiation power with suppliers CONFIDENTIAL 71% • Dilution of fixed costs • Optimization of risk • Access to other sources of finance More successful Less successful companies companies • Source: McKinsey Research, CEIS 3
  • 20120523 CEIS - Poland Internationalization of businesses is also a matter of survival for Portugal CAGR*. Percentage Portuguese GDP Growth GDP growth levers Private consumption 3.3 3.6 1.3© Copyright 2012 CEIS – All rights reserved Government spending 3.6 CONFIDENTIAL 1.6 Investment 7.5 0.7 -2.6 Trade balance 1993-2000 2000-2010 2010-2020 0.9 -13.0 * At 2005 prices Source: McKinsey Research, Global Insight; OCDE “OECD Economic Outlook”; EIU 4
  • 20120523 CEIS - Poland Portugal should be able to act on the trade balance lever, following the example of European pears World export quota* 2.7% 2.1%© Copyright 2012 CEIS – All rights reserved 1.7% CONFIDENTIAL 1.5% 1.4% 0.4% Portugal Sweden Austria Switzerland Denmark Belgium * Normalized by the population Source: McKinsey & Company, IMF; International Trade Center; Global Insight 5
  • 20120523 CEIS - Poland Agenda of the meeting • Why? 20m© Copyright 2012 CEIS – All rights reserved CONFIDENTIAL • Where? 40m • How? 1h 30m 2h 30m 6
  • 20120523 CEIS - Poland The CEE market is huge and offers strong potential 2010 GDP (Current Prices), GDP Population, Trillion $ Per Capita Million (Thousand $) 15 34 47© Copyright 2012 CEIS – All rights reserved 14 CONFIDENTIAL 11 313 307 268 4 CEE WE* USA CEE WE* USA * Countries belonging to WE: Austria, Belgium, France, Germany, Ireland, Luxembourg, Netherlands, Portugal, Spain and United Kingdom Source: World Bank & Central Intelligence Agency (The World Factbook) 7
  • 20120523 CEIS - Poland and there is still space for credit-fuelled growth 2010 DEBT/GDP (%) 70© Copyright 2012 CEIS – All rights reserved 59 CONFIDENTIAL 39 CEE WE USA Source: Central Intelligence Agency (The World Factbook) 8
  • 20120523 CEIS - Poland Poland is already a big market in Europe 2010. Current prices GDP Population GDP per capita Countries (Billion USD) Countries (Million) Countries (Thousand USD) Germany 2,960 Germany 82 Netherlands 41 France 2,160 France 65 Germany 36© Copyright 2012 CEIS – All rights reserved Spain 1,376 Spain 47 France 33 CONFIDENTIAL Poland 725 Ukraine 45 Spain 30 Netherlands 680 Poland 38 Czech Rep. 26 Ukraine 306 Netherlands 17 Portugal 23 Czech Rep. 263 Portugal 11 Poland 19 Portugal 247 Czech Rep. 10 Ukraine 7 Source: World Bank; Central Intelligence Agency (The World Factbook) 9
  • 20120523 CEIS - Poland and will soon level its economy with EU peers GDP Growth. 2005-2010, % 29%© Copyright 2012 CEIS – All rights reserved CONFIDENTIAL 19% 16% 5% 4% ~1% ~1% ~0% Ukraine Poland Czech Rep. Portugal Spain Netherlands Germany France Source: World Bank; Central Intelligence Agency (The World Factbook) 10
  • 20120523 CEIS - Poland Poland, basic info Area 312,679 km2 Population 38.1 m Capital Warsaw agglomeration: population 2.5 million© Copyright 2012 CEIS – All rights reserved Administrative 16 Voivodships, 314 divisions Poviats, 2478 Municipalities CONFIDENTIAL Legislative Branch Sejm (460 representatives), Senat (100 representatives) Executive Branch President (5 year term), Council of Ministers (4 year term) Judicial Branch Supreme Court, common courts, administrative courts, military courts Time zone GMT +1 Source: PAIiZ 11
  • 20120523 CEIS - Poland Poland, basic info – Cont. Poland is characterized as Main financial numbers GDP Growth PLN. % • being robust and resilient to external shocks – mainly due to the country’s significant internal market and diversified export structure 6.8 6.2 5.3 5.1 3.9 4.3 3.6© Copyright 2012 CEIS – All rights reserved • offering safe environment for undertaking 1.8 economic activity and long-term planning (stable prices, permanent GDP growth) CONFIDENTIAL 2004 05 06 07 08 09 10 2011 • having very low risk of a financial crisis (public sector debt amounts to 55 % GDP while the EU 27 average equals 80% GDP) GDP 2010 469 Billion USD (2x Portuguese: 229) • offering investment possibilities resulting from Unemployment rate 12.4% modernization of infrastructure and implementing 2010 modern technologies in corporations Inflation 2010 2.6% • being driven by a large number of agile small Min. salary 1.500 PLN (~375€) and medium enterprises (over 3 000 000 registered entities) Avg. salary 2011 3.416 PLN (~850€) Source: PAIiZ, GUS, NBP, World Bank 12
  • 20120523 CEIS - Poland Wages in Poland are following the growth of the economy Average monthly gross wages. PLN 3,225 3,103 2,942© Copyright 2012 CEIS – All rights reserved 2,691 2,477 2,380 2,290 CONFIDENTIAL 2,133 2,201 2,062 1,924 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Polish statistical office (GUS) 13
  • 20120523 CEIS - Poland yet low compared with peers Labour cost per hour in euros. 2010 41 38 38 36 33 31 29 29© Copyright 2012 CEIS – All rights reserved 28 28 27 26 23 CONFIDENTIAL 20 20 18 14 12 10 8 8 7 7 6 5 4 3 Source: Eurostat 14
  • 20120523 CEIS - Poland and inflaction is expected stable and low Yearly price index for consumer goods and services 10.1%© Copyright 2012 CEIS – All rights reserved CONFIDENTIAL 5.5% 4.2% 3.5% 3.5% 3.7% 3.1% 2.6% 2.8% 2.5% 1.9% 2.1% 0.8% 1.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 F2011 F2012 F2013 Source: Polish statistical office (GUS); forecast by PMR 15
  • 20120523 CEIS - Poland 29% of Polish population is concentrated in big cities Million. 2010 100%=38 15 Warsaw 4.5% Lodz 2.0% 39%© Copyright 2012 CEIS – All rights reserved Krakow 2.0% 23 12 CONFIDENTIAL 32% Wroclaw 1.7% 11 61% Poznan 1.5% 29% Other 17.2% Total Rural Urban Cities below Cities above population population population 100k 100k Source: Polish statistical office (GUS) 16
  • 20120523 CEIS - Poland Red tape still is a reality in some countries of CEE 2010 Worldwide Corruption Perceptions, Ranking of Countries Denmark (1º) 9,3 Germany (15º) 7,9 UK (20º) 7,6© Copyright 2012 CEIS – All rights reserved Spain (30º) 6,1 Portugal (32º) 6,0 CONFIDENTIAL Poland (41º) 5,3 Hungary (50º) 4,7 Czech Republic (53º) 4,6 Slovakia (59º) 4,3 Croatia (62º) 4,1 Italy (67º) 3,9 Romania (69º) 3,7 Ukraine (134º) 2,4 Russia (154º) 2,1 Source: Transparency International 17
  • 20120523 CEIS - Poland Bureaucracy also creates bottlenecks in many transactions “The Polish state is more IN PORTUGAL: bureaucratic and exercise more control than rest of Europe.” Company at the time: One place, in Diário Económico, 2007 One company António Castro, ex-CEO of Group 24 HOURS Mota-Engil to Central Europe© Copyright 2012 CEIS – All rights reserved “Polish bureaucracy is much like CONFIDENTIAL the traffic in Warsaw - no end in sight, but eventually you somehow get through it.” IN POLAND: Many bureaucracies, In Investing in Poland, 2011 Many places Tomi Ranta, managing director of Poland Leinonen Accounting 1 MONTH “We have a good relationship with local authorities and are careful not to create conflicts.” 1º Define the type 2º Register company in of society the registration district in Diário Económico, 2007 3º Statistical Register FILL 4º Stamp making José Manuel Cunha, ex- FORM 5º Open account 6º Get tax Id & PIN administrator of ColepCCL Polska 7º Social Security 8º Notary 18
  • 20120523 CEIS - Poland There are opportunities at all levels Entry form Sectors • Infraestructure (roads, railroads, airports, energy production, transport and distribution, waste management, • Mergers and acquisitions water, amoung others)© Copyright 2012 CEIS – All rights reserved • Green field entry • Services / customer care CONFIDENTIAL • Privatizations • Luxury goods • Trade / export of products and • Niche markets services • Others 19
  • 20120523 CEIS - Poland Agenda of the meeting • Why? 20m© Copyright 2012 CEIS – All rights reserved CONFIDENTIAL • Where? 40m • How? 1h 30m 2h 30m 20
  • 20120523 CEIS - Poland Some companies failed to enter Poland successfully Company name Background Possible reasons for exit • Lack of knowledge of the most direct competitors • Year of entry: 2006 • Corebusiness: Collection and transportation of • Lack of investment Greendays Polska • Lack of knowledge of the Polish© Copyright 2012 CEIS – All rights reserved industrial waste market • Problems in developing the companys business (prospecting for new clients) CONFIDENTIAL • European leader in the distribution of technological and cultural assets • Only brand that offers, in one space, one • Lack of knowledge of the most direct competitors (Empik is the leading selection of product literature, music, image, FNAC brand in the Polish market, with a sound and all the technologies large market share) • 145 stores in seven countries: Belgium, Spain, Italy, Portugal, Switzerland, Greece and Brazil • Lack of knowledge of the most direct competitors • Corebusiness: Import and distribution of • Lack of knowledge of the Polish Portugalia Shoes footwear market • Problems in developing the companys business (prospecting for new clients) 21
  • 20120523 CEIS - Poland There is a cultural and linguistic barrier which makes it necessary in many cases to adapt business models IN PORTUGAL: Pingo Doce - Chain supermarket of Jerónimo Martins - Serving small residential areas, specially middle class and middle/high class population© Copyright 2012 CEIS – All rights reserved - Pingo Doce has the competitive advantage of possessing lower prices regarding the meat, fish, vegetables and fruits CONFIDENTIAL - Chain supermarket of Jerónimo Martins IN POLAND: Biedronka - One of the main purpose is to satisfy small areas in the suburbs, targeting in particular the middle class and the middle/low class population - It differs from competitors by its low prices, name, colors and by its stores location strategy (single buildings and isolated) 22
  • 20120523 CEIS - Poland But mainly, mentalities have to be adapted REAL COMMENTS, ADAPTED “I am market leader in Portugal. Why should I pay market price for a location in a shopping “I want very much mall??” export to Poland, but© Copyright 2012 CEIS – All rights reserved I can not invest in marketing and publicity...” CONFIDENTIAL “This is not how we do business in Portugal...” “If it sells in Portugal for sure it will sell in “We do not need a Poland...” market study. Let’s just start and see how it goes...” 23
  • 20120523 CEIS - Poland To have the key business contacts and introductions can make the difference between success and failure “In Poland, we saw a local partner that made us “It is important to have a partner in the field, even if it think about investing in the country. As a growing isn’t a local.” country, we saw a business opportunity.” In Globes Israel’s Business Arena, 2011 In Diário Económico, 2007 Yuval Avni, GIZA Venture Capital* managing partner António Marques Varela, president of Tiner*© Copyright 2012 CEIS – All rights reserved * GIZA is an investment fund in several areas: * Construction company of Logistics and Distribution Centers, Shopping Communications, Semiconductors, Information Technology, Malls, Retail Parks, Factory Outlets, Commercial and Residential Enterprise Software, Life Sciences, CleanTech, Media, Buildings CONFIDENTIAL Internet & Entertainment “With the strong development of the transport sector in Poland, there was a necessity to have a local “When we entered the market it was essential to partner to help us in the companys growth. resort to a Polish partner in order to immediately acquire some of the market knowledge.” In Samskip News, 2009 “Is not required entering in market with a local Jens Holger Nielsen, CEO of Samskip Multimodal partner, but you have to have a deep knowledge of Container Logistics the Polish market.” In Diário Económico, 2007 Francisco Lacerda, ex-administrator of Millennium BCP 24
  • 20120523 CEIS - Poland CEiS aims to be the key partner of new successful businesses in CEE Economical opportunity in CEE Entry barriers for companies • The market is huge and offers • There are examples of strong potential companies that did not succeeded in entering CEE • The economy is growing at a© Copyright 2012 CEIS – All rights reserved strong and sustainable pace • There is a cultural and linguistic barrier which makes it • Overall the region resisted well necessary in many cases to (comparatively) to the credit Our Vision adapt business models CONFIDENTIAL crunch To be the key catalyst and • It is hard to do business without partner of new and successful • There is still space for credit- appropriate business contacts businesses in CEE fuelled growth and introductions • The age-pyramid is favourable • Red-tape is still a strong reality to further growth Our Mission in some countries of CEE • The education system has To identify and select businesses • Bureaucracy creates shown proves of great that could succeed in CEE and bottlenecks in many effectiveness support them with an integrated transactions offer as their local partner 25
  • 20120523 CEIS - Poland CEiS offer is the combination of several existing services, with the added value of being integrated Foundations of CEiS value proposition • Extensive know-how and expertise in management Management • Profound knowledge consultant Know-how of CEE market Interim Private© Copyright 2012 CEIS – All rights reserved management equity/ Business Angel CONFIDENTIAL Broad network of contacts in a comprehensive set of Network business fields in CEE Legal adviser Tax adviser Complete alignment with the client by establishing a Outsourcing Start-up partnership with incubator Alignment common incentives Partner 26
  • 20120523 CEIS - Poland CEiS offer is based on 4 integrated solutions, NOT EXHAUSTIVE tailored to each client Strategy support Business origination and sales • Define the entry strategy to CEE • Contact clients – Analyse segments and pricing • Establish, train and manage the – Elaborate market studies sales force – Define product and value proposition • Introduce sales team to potential© Copyright 2012 CEIS – All rights reserved – Design the business plan clients and partners • Support execution of the strategy • Support business development initiatives CONFIDENTIAL Finance Management and back-office • Define corporate finance structure • Manage the day-to-day activities • Negotiate on behalf or support • Manage the back office (accountancy, negotiations for funds raising legal, payroll, HR, etc) • Support project finance design • Design and optimize procedures and negotiations • Perform due diligence • Design metrics and control mechanisms 27
  • 20120523 CEIS - Poland Who we are - Experience highlights • CEO Central Europe Integrated Solutions • Board member Polish Portuguese Chamber of Commerce • Previously board member EDP Renewables Polska, with responsibilities in planning and control • Previously consultant with McKinsey & Company • MBA from Insead© Copyright 2012 CEIS – All rights reserved • Firm commitment to Bruno success Ferreira CONFIDENTIAL • Solid partnership to grow the business in CEE • Vice President Central Europe Integrated Solutions • Strong and solid background to • CEO AJR Development guarantee future • CEO Grill & Co achievements • Board member AJR HD Sp. z o.o. (Haagen-Dazs shops) • Vice President Polish Portuguese Chamber of Commerce • Previously Member of Supervisory Board – FoodCare Sp. z o.o. • Previously Board Member Martifer Gestão Imobiliária (Portugal) João and CEO Martifer Polska Rodrigues • MBA from IEDE/EUDEM 28
  • 20120523 CEIS - Poland To guide and advise CEIS is supported by an Advisory board Advisory board • His Excelency the Ambassador of Portugal in Poland, Mr. José Sequeira e Serpa Responsibilities of the • Chairman of the Polish Portuguese Chamber of advisory board© Copyright 2012 CEIS – All rights reserved Commerce, Mr. Pedro Silva • To give guidance to the • Partner at Law Firm Domański Zakrzewski definition of CEIS’ Palinka, Mr. Marcin Krakowiak CONFIDENTIAL strategy • Secretary General of the Polish Portuguese Chamber of Commerce, Mr. Tiago Silva • To support the identification of long- term market trends that can affect CEIS Executive board • To evaluate and • Bruno Ferreira, CEO supervise the quality of • João Rodrigues, Vice-President the service provided by CEIS to its clients and partners 29
  • 20120523 CEIS - Poland Key messages • Internationalization is key for the survival of Portuguese companies and Portuguese economy as a whole© Copyright 2012 CEIS – All rights reserved CONFIDENTIAL • Central Eastern Europe, in particular Poland, is an actractive market due to size, proximity and existing opportunities • Although there are plenty of opportunities, there are also some obstacles and mistakes have to be avoided 30