Budapest Business Journal 21/17

SPECIAL REPORT: VOL. 21. NUMBER 17

IT INDUSTRY SEPT 06, 2013 – SEPT 19, 2013

BUDAPEST

BUSINESS JOURNAL HUF 1,250 | €5 | $6 | £3.5

HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU

NEWS

FOREX PHASE-OUT

29%

of foreign currency loans overdue at the end of May

First steps in election journey Former PM Gordon Bajnai’s vision of a unified front against the two−thirds majority currently held by the Fidesz−KDNP coalition has yet to come to pass, but recent events may indicate that Bajnai’s Together 2014−Dialogue for Hungary party has turned the corner on derisive in−fighting with would−be partners MSzP. 07 SPECIAL REPORT

Photo: László Beliczay / MTVA

A digital retreat Not content to let the issue go, the government is preparing to introduce another measure to phase out foreign currency mortgages. State secretary János Lázár says the move will put an end to forex mortgages once and for all. 03

The growing number of risks related to a digital existence is sparking increased demand from users that they be removed, only for many to find that they are more integrated into the virtual realm than they had believed.

20-21 SOCIALITE

Amazon on the horizon?

If the economic regulator finds the deal in line with rules preventing excessive economic power, the nascent Libri−Shopline deal could rewrite the current bookstore market.

26-27 BUSINESS

Q&A with Renaud Capris, the new CEO of Dalkia Energia. 08

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Balázs Román

The political opposition can finally see a long−awaited and much−needed glimpse of hope after a strenuously formulated cooperation agreement, followed by a com− manding local election victory for the candidate jointly nominated by the left. Sándor Ladányi won a bi−elec− tion in Szigetszentmiklós in a landslide with the joint support of the socialist MSzP, Gordon Bajnai’s Együtt 2014 and Ferenc Gyurcsány’s DK. He took 52.03% of the vote: his nearest contender, of the governing Fidesz party, could only muster 29.13%.

The supporting parties immediately declared the result as a sign of widespread discontent with Viktor Orbán and an indication that close cooperation from the democratic opposition could topple Fidesz in 2014, even though the government has revised the election system to put the varied opposition at a disadvantage.

Supporters of the opposition parties could use the encouragement, especially seeing the bickering that flavored the tug of war between Gordon Bajnai and socialist leader Attila Mesterházy.

Still, despite the margin, Ladányi’s victory came from just 359 votes at a local ballot with a turnout of 30.94%, in a town where the left wing is traditionally strong.

The sample isn’t in any way indicative of the country as a whole, not to mention the fact that local elections over the past three years have gone either way without any clear trend formulating.

The opposition should be more concerned about somehow cleaning up the mess that came from the

continuously souring talks. The negotiations revealed that, despite their claims of focusing purely on the goal of ousting Orbán from power and putting aside all per− sonal ambitions in the process, neither Bajnai nor Mes− terházy would be satisfied with anything less than the premiership.

The fact that they have reached a sort−of deal about allocating support for individual candidates could be a favorable sign, but not naming a formal joint candidate for prime minister shows that the desired rock−hard unity on the political left is nowhere in sight. If any− thing, the negotiations that preceded the pact, involv− ing plenty of petty arguments and backstabbing, have opened plenty of wounds, just as the two parties should be preparing for the 2014 campaign to truly take off.

In the meantime, the governing party isn’t sitting idly by. The fall brings another 10% reduction in util− ity costs (and already another wave is being hinted at), another bailout effort is on the table for foreign currency debtors, and January could bring a reduc− tion in meat prices through the cutting of VAT on poultry and pork.

The opposition can only rely on rejection of Orbán and his party’s values intensifying, but even then, the dormant antagonism among the sides involved doesn’t bode well for the campaign. Of course, if there’s already this much baggage, it wouldn’t exactly point towards seamless governance if the left wing beat the odds and does emerging victorious next year.

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APPEASING THE BULLY The government is set to announce a fourth tool targeted at aid− ing foreign currency mortgage loan debtors with the declared goal of evicting the product from Hungary for good. Interest− ingly enough, the banks aren’t protesting, but are apparently eager to contribute, professionally as well as financially.

The reigning Fidesz government has never been too big on seeking out the opinion of sectors that it wants to regulate or tax – or basically any− body’s counsel – and typically just went and announced whatever new policy it came up with.

This has led to patch− work lawmaking when the haphazard policies’ flaws quickly emerged, while the industries that found themselves on the govern− ment’s hit list could con− stantly fear for what may come next.

Banks were the pri− mary targets and are still an adversary that the government can squeeze for money with its voters applauding in the back− ground. The first, lump− sum payment scheme in 2011 was a painful blow in itself, followed by two other meth− ods that were partially approved by the banks. However, the transaction tax and its subsequent raise were further highly costly measures that came out of the blue.

“The government measures announced today will seriously jeopardize the predictability of financing of the economic actors, all their elements further reduce the lending ability of the banks. All this will harm the real

economy and growth prospects and hamper recovery from the drawn−out crisis.” This was the Hungarian Banking Association’s reaction to the transaction levy last October, while accusing the government of unilaterally breaching the fragile agreement that was built between the sides.

Ever since, the association and various bank leaders have repeatedly stated that the Hungarian finance sector has already been pushed farther than it can bear.

Now, that indigna− tion has not only dis− appeared, it seems that the banks are hoping to soothe the government into a course of action that is more moder− ate. It’s pretty much like giving your lunch to the school bully up front and hoping he won’t beat you up later as a result. The bank− ing association has prepared detailed stud− ies of its scenarios and presented them to Econ− omy Minister Mihály Varga and also already made financial commit− ments, citing an overall improvement in the finance indus− try and the all−around economy.

Varga, however, made it very clear that while this time the banks will have a chance to speak their minds at the negotiating table, they are by no means in charge and ultimately whatever the government decides, goes. As friendly as the banks seem to appear, they should know that whatever the result of the ongoing talks, they will be the ones bearing the brunt of the burden.

IT’S PRETTY MUCH LIKE GIVING YOUR LUNCH TO THE SCHOOL BULLY UP FRONT AND HOPING HE WON’T BEAT YOU UP LATER AS A RESULT

BBJ

1 News

NEWS IN BRIEF

Investment volume rises in Q2

04

NEWS

Left−wing coalition takes first step

07

macroscope

FINAL CHARGE AGAINST FOREX LOANS GERGŐ RÁCZ

The banking industry is about to take another blow after Economy Minister Mihály Varga announced that there would be a further, hopefully final measure implemented to com− pletely eradicate foreign currency denomi− nated mortgages in Hungary.

Having earlier stated that the banking sec− tor has already been pushed beyond what it can bear, this time around, the Hungarian Banking Association seems more than happy to cooperate, and has drafted proposals of its own with the aim of swaying the government towards less drastic solutions.

“There will be a solution for the issue of for− eign currency loans by December 31: forex loans will come to an end while assuring that their conditions won’t be any better off than those with forint policies,” state secretary János Lázár said.

In the meantime, small groups of debtors are holding regular demonstrations, calling out politicians and bank leaders while defac− ing the storefronts of bank branches. Their demands to completely abolish the half a million already signed contracts are based on the notion that they were willfully mis− led into signing a loan policy without being properly informed of the risks stemming from exchange rate fluctuation.

“The only solution is complete abolishment [of foreign currency loans], since the people don’t have any money anymore to pay for any− thing. People have been robbed, they have lost their jobs, their health is ruined, they can’t pay anymore,” one of the organizers said.

RIVAL SOLUTIONS The government is considering a hand− ful of options, including those proposed by the banks. Ultimately, the aim of any of the steps is to convert forex loans into forints to remove the risks stemming from currency fluctuations.

One of the suggestions would make the conversion utilizing beneficial funding from

STORY HIGHLIGHTS ■

Government is considering scenarios to complete an end to foreign currency lending ■ Banks campaign for compromise solution to preserve stability

the central bank’s reserves. Another would entail drastically shortening the maturity of the existing policies, after which clients would enter a scheme similar to an existing setup for foreign currency loans, under which they would repay their debts in forints. The gov− ernment said that the banks’ proposals are a

basis for further talks, but Varga’s immediate reaction indicates that the banks will have to take more of the stress.

“The banking association was aiming to protect the position of the banks. Whatever solution we eventually agree on can only be realized if we take part in it together and proportionally share the burdens,” he told reporters directly after negotiations with the banking association.

Despite the finance sector’s willingness to cooperate, there are concerns that the gov− ernment will achieve its core aim by forc− ing a painful resolution through a sweeping conversion to forints. According to the boss

FOREX LOAN CASUALTIES IN A BUDAPEST PROTEST MARCH

of OTP Bank, Sándor Csányi, this would result in HUF 950 billion in losses for the industry: his company alone would have to swallow HUF 300 billion.

Csányi also stressed the need for the mea− sure to be fair and to actually help those in need because of circumstances that they can’t be held accountable for, rather than others who took out loans for speculative purposes and are in no need of rescue. He added that the “hys− teria” surrounding foreign currency lending dims the fact that just as many forint−debtors are also having trouble making ends meet and forking out monthly installments on time.

Photo: Zsolt Szigetváry / MTVA

The government remains ardent in its crusade against foreign currency mortgages and is preparing to launch another wave of bailouts. The banking sector is surprisingly compliant even though they estimate the costs they will shoulder in the hundreds of billions.

MANDATORY RESCUE One of the biggest differences between the previous bailouts and the relief efforts currently under consideration is that par− ticipation will be mandatory, as Economy Ministry state secretary Gábor Orbán said in an interview.

The government is resorting to the strict approach seeing that its previous program, which involves the banks and the state split− ting the costs of monthly interests above a certain exchange rate to keep installments under check, only sparked muted interest.

Only 40% of eligible debtors have so far applied for the “árfolyamgát”, despite the fact that the government and the banks actively campaigned to promote it.

Gábor Orbán added that the first mea− sure, which allowed the lump sum repay− ment of mortgage loans at a fixed, beneficial exchange rate, was special because of the dis− counts involved. This time, the phase−out of foreign currency loans won’t necessarily incorporate that element, since it is likely to spark stability issues in the financial sector.

“Although the government is clearly on the debtors’ side, it cannot jeopardize the stability of the financial system while pro− viding foreign currency debtors relief,” he told political weekly Heti Válasz.

THE ONLY SOLUTION IS COMPLETE ABOLISHMENT [OF FOREIGN CURRENCY LOANS], SINCE THE PEOPLE DON’T HAVE ANY MONEY ANYMORE TO PAY FOR ANYTHING

04 News

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NEWS FOR THESE PAGES IS TAKEN FROM THE BUDAPEST BUSINESS JOURNAL’S DAILY BRIEFING, HUNGARY A.M.

NEWS

IN BRIEF

Budapest Business Journal | Sept 06 – Sept 19

The moral situation of Hungary’s public life puts the country at a competitive disadvantage.

OTP Bank CEO Sándor Csányi in an interview with television channel ATV

September once more brings the start of the school year, this time marking the launch of several revisions enacted to the education system. From the 2013/2014 school year the necessary textbooks are distributed centrally. The system took off with glitches that some parents descried as severe, while government officials dismissed as negligible. Students are now required to study either religion or morality, while teachers may hope to see the start of their career development program that entails higher wages and more options.

ECONOMY TRADE SURPLUS REACHES €581 MLN IN JUNE

Hungary had a €580.7 mln trade sur− plus in June, the Central Statistics Of− fice (KSH) said in a second reading.

The surplus was slightly lower than the €582.8 mln in the first reading published on August 8. Exports fell 3.2% to €6.724 bln from the same pe− riod a year earlier. Imports were down 0.8% at €6.143 bln. In January−June, Hungary’s trade surplus reached €3.506 bln. Exports increased 1% to €40.393 bln and imports were up 1.4% at €36.887 bln.

PMI RISES OVER GROWTH THRESHOLD

Hungary’s seasonally−adjusted Pur− chasing Managers Index (PMI) rose to 51.7 in August from 49% in July, the Hungarian Association of Logis− ADVERTISEMENT

tics, Purchasing and Inventory Man− agement (Halpim), which compiles the index, said. Among the sub−in− dices that comprise the PMI, the new orders index “rose more moderately” and showed new order stock was up.

The production volume index fell but was still above 50 for the third month in a row. The employment index rose above 50 after showing a contraction in May−July.

INVESTMENT VOLUME RISES IN Q2

Investment volume in Hungary rose 4.6% year−on−year in the second quarter of 2013, in the first increase recorded since the fourth quarter of 2007, Central Statistics Office (KSH) said. Second−quarter invest− ments were boosted mainly by road construction, utilities and flood protection projects. Investments in the manufacturing sector still con− tracted year−on−year, although the drop slowed to 0.5%. Second−quarter

Number

investment volume fell a seasonally− adjusted 0.1% quarter−on−quarter.

in the news

DOMESTIC

2.6% GDP growth forecasted for Hungary in 2014

by Merril Lynch.

The government has targeted a 2% increase for 2014.

BILL WOULD CAP BANK, CREDIT CARD INTERCHANGE FEES

Hungary’s economy minister Mihály Varga has submitted amendments to Parliament that would cap interchange fees at 0.2% for bankcards and 0.3% for credit cards. The National Bank of Hungary earlier recommended the introduction of a limit on interchange fees. Introducing the limit would cut the average interchange fees on domes− tic retail bankcards – the most frequent− ly used segment – by half or two−thirds, a central bank official said in June.

HOME SALES DROP 4% YR/YR IN AUGUST

There were 7,060 homes sold in Hunga−

ry in August, down 4.3% from the same month a year earlier, real estate broker Duna House told MTI. The number of homes sold in January−August fell 18.9% to 55,122 from the same period a year earlier. However, home sales in the first months of 2012 were much higher than usual because of a government scheme that allowed early repayment of foreign currency−denominated mort− gages at discounted exchange rates.

GOV’T APPROVES HUF 9.6 BLN FOR STADIUM CONSTRUCTION

The government approved a HUF 9.6 bln earmark for the construction of a football stadium in Szombathely, De− fense Minister Csaba Hende said. The central subsidy will go to Szombathely’s own HUF 12 bln recreation strategy.

The investment should be completed in the second half of 2014, to be followed by upgrades to the local swimming pool, park areas, a recreational center and an ice skating rink, Hende said.

Photo: Szilárd Koszticsák/MTI

Back to school

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News 05

Budapest Business Journal | Sept 06 – Sept 19

COMPANY NEWS

THE BUDAPEST STOCK EXCHANGE generated average

double−counted daily share turnover of HUF 6.3 bln in August, down 46.6% from July. The BSE had average daily share turnover of HUF 9.4 bln in the first eight months of 2013, down 7.6% yr/yr.

FIRST PRIZE FOR SUCCESSFUL BUSINESS AWARDED

The government has asked Dunaferr’s senior officials not to lay off any employees until talks between the government and the company’s management are concluded, state secretary in charge of employment policy Sándor Czomba told MTI after his talks with the management in late August. Dunaferr bosses promised to consider the request, Czomba added.

The government announced last week that it would make a buyout offer for the Ukrainian-owned company, which said on August 12 that it would lay off 1,500 people, or about onefifth of the group’s workforce.

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ECONOMY MINISTER MIHÁLY VARGA WITH TEVA MAGYARORSZÁG CEO LÁSZLÓ SZABÓ AND FACTORY HEAD MIHÁLY KASZÁS

Hungarian oil and gas company MOL has launched its own branded mobile telephone service. MOL will rely on the network of Magyar Telekom for the service. The launch fits MOL’s strategy of expanding the services available at its petrol stations.

The margins of Hungarian electricity distributors ELMŰ and ÉMÁSz, both majority−owned by Germany’s RWE−EnBW, narrowed in H1 from the same period a year earlier. Revenue of ELMŰ rose 1% to HUF 111.6 bln, while the revenue of ÉMÁSz edged up half a percent to HUF 44.3 bln.

Hungarian entertainment guide publisher Est Média finished the first half of the year with 90% less losses, as revenue still fell, but financial losses narrowed. After−tax loss diminished to HUF 198.6 mln in H1 from HUF 2.08 bln a year ago, the company’s consolidated, non−audited IFRS state− ment showed.

Erste Bank Hungary booked a net loss of HUF 26.2 bln for the first half of this year, as revenue and client lending fell and the bank tax also weighed. Erste Bank had a net profit of HUF 2.4 bln in H1 last year. Total assets fell 7% to HUF 2,593 bln from HUF 2,788 bln at the end of last year.

Pannon−Flax had an after−tax loss of HUF 93.7 mln in the first half of 2013, following a loss HUF 84.7 mln a year ago, the Győr−based Hungarian textile

Photo: Zoltán Máthé / MTI

GOV’T ASKS DUNAFERR TO POSTPONE LAYOFFS

National Economy Minister Mihály Varga presented the ‘Prize for Successful Business’ for the first time to three Hungarian companies at a ceremony on August 27. The Hungarian business of Israeli generic drugmaker Teva was named ‘investor of the month’, artisan confectioner ChocoMe ‘SME of the month’ and Clariton, which has developed a scanner to gauge how clean hands are, was ‘start− up of the month’. The prize will be awarded every month.

maker’s consolidated, non−audited IFRS statement shows. In Q1, the com− pany had a loss of HUF 54.4 mln, up from a loss of HUF 38.5 mln a year ago.

Property holding company Appeninn booked a first−half net profit of HUF 255 mln as revenue grew and the value of its portfolio increased. Revenue climbed 17% to HUF 465 mln and operating profit was up 31% at HUF 364 mln.

Hungarian−owned Waberer’s International had revenue of more than €216 mln in the first half, up 17.4% from the same period a year earlier, the road haulage company said. Revenue was lifted by the consolidation of Szemerey Transport and Transpont Hungaria, which Waberer’s acquired at the end of last year.

Hungarian−owned contract electronics manufacturer Videoton Holding’s H1 revenue rose 10% from the same period a year earlier, CEO Ottó Sinkó told MTI. A big order from the city of Budapest’s public transport company could raise revenue in the second half by 2−3%, Sinkó said, without giving any absolute figures.

Toolmaker Hilti’s Hungarian unit has completed a HUF 715 mln investment at its base in Kecskemét. The unit won a HUF 210 mln European Union grant for the new machinery and production lines. Hilti Szerszám had revenue of more than HUF 4 bln last year. It employs more than 130 people.

Ganz Engineering and Energetics Machinery (Ganz EEG) this month com− pleted delivery of $17.8 mln in high−capacity pumps to the Rostov Nuclear Power Plant in Russia, Ganz EEG told MTI. UK−based contact lens maker Sauflon is undertaking a more than €10 mln expansion at its base on the outskirts of Budapest. The investment will raise capacity by 35−40% from one million lenses a day.

German utilities giant RWE has decided to sell its 50% stake in Budapest gas company Főgáz, EnergiaFocus.hu said, citing independent industry sources.

RWE’s 49.83% stake in Főgáz will not be bought out by its co−owner, the local council of Budapest, the site said. RWE director of external communications Carlin Flemming declined to comment when asked by MTI about the report.

UK supermarket chain Tesco is expanding its delivery fleet in Hungary with vehicles made by Germany’s Daimler. Tesco−Global Áruházak CEO Nigel Jones said the unit was using 40 vehicles to make deliveries of online orders at present, but would expand the fleet to 65 by year−end.

Troubled energy services company E−Star had a first−half after−tax profit of HUF 1.7 bln, improving from a loss of more than HUF 3 bln in the base period as the result of a portfolio cleanup. Revenue was halved to HUF 16.1 bln as E−Star sold or wound up businesses in Hungary.

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06 News

Budapest Business Journal | Sept 06 – Sept 19

OUTLOOK IMPROVING FOR ASIAN MARKETS

EXPERT OPINION

EQUITIES PRICED FOR A CATCH-UP Pé Péter SOMOGYI S CITIBANK CIT CE CENTRAL EUROPEAN CLUSTER, IN INVESTMENT HEAD

C

iti analysts believe that China’s economic transition to more domestic consumption driven slower growth will continue to weigh on economic activity in other Asian countries, while the appreciation of general Asian currencies against the Japanese yen will further cap their export competitiveness. Citi analysts now anticipate 6.4% GDP growth for the region, with notable downgrades for Taiwan, South Korea and Malaysia.

Citi analysts think rates cuts are possible – though less likely – in countries facing escalating private debt ratios or increasing current account deficits. In particular, they think credit policy will remain accommodative in China amid benign inflation.

Though still strong compared to developed markets, slower GDP growth across the region has largely contributed to the underperformance of Asian equities during the last 12 months.

Going forward, Citi analysts expect earnings per share to grow by 17% this year in a neutral revision context, which is likely to offer strong rerating opportunities, particularly with the trailing Price-to-Earnings ratio significantly below average. They also observe that the monetary context remains accommodative in the region, and the fundamentals are attractive enough to overweigh the region as they think it shouldn’t take a significant catalyst to change investors’ sentiments to catch-up some of the recent underperformance. In particular, Citi analysts have a preference for Honk Kong, South Korea, Taiwan and Singapore.

GERGŐ RÁCZ

Emerging markets are seeing bad days after improving economic indicators in the United States shored up expectations that the Fed− eral Reserve will scale back and shortly end its stimulus campaign, which essentially translates to printing $85 billion a month.

Although Asian emerging markets have seen a frightening withdrawal of money in the past months as a result of the globally souring mood, the latest wave of macroeco−

CHINESE DRIVER The Asian region’s outlook is also affected by which way China’s economy is heading.

In a newly published ‘hard landing’ scenario, Moody’s Analytics economist Alaistair Chan evaluated the short−term effects of a down− turn and found that such an event unfolding would have a profound effect on the global economy, more so for Asian countries.

The scenario “combines an export slow− down with domestic policy missteps in the face of rising government and state enter− prise debt” that could culminate in China’s economic growth slowing to lower than 3% of gross domestic product by the fourth quar− ter of 2014, opening up a considerable out− put gap for the ensuing years. “We see about a 15% likelihood of this, or something worse, occurring,” Chan said.

In contrast, the current statistics from China show that the country is on track to keep up growth. While August’s non−manu− facturing purchasing managers’ index dipped to 53.9 from 54.1 in July, the reading is still well above the 50 mark, indicating expansion.

DEPLETION OF CENTRAL BANK RESERVES IN EMERGING MARKETS (END-JULY)

Indonesia Turkey Ukraine India

13.6% 12.7% 10% 5.5%

MSCI Asia Pacific ex Japan Index 580 560 540 Source: Morgan Stanley

520 500 480 460 440 420

07/15/2013

07/01/2013

06/17/2013

06/03/2013

05/20/2013

05/06/2013

04/22/2013

04/08/2013

03/11/2013

03/25/2013

02/11/2013

02/25/2013

01/28/2013

01/14/2013

12/31/2012

12/17/2012

11/19/2012

12/03/2012

11/05/2012

10/22/2012

10/08/2012

09/24/2012

09/10/2012

08/27/2012

08/13/2012

07/30/2012

07/16/2012

400 07/02/2012

NOTE: ALL ARTICLES MARKED E XPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILIT Y

Citi analysts observe that this underperformance has in turn contributed to significantly improving the attractiveness of local stocks. Indeed, compared to previous peak levels in 2007, Asian ex-Japan earnings are 20% higher while stocks prices are 20% lower, whilst in the United States, stock prices are 6% higher while earnings are now 12% higher.

Investors are increasingly looking at Asia as the hot region for investments, with growing concerns about the future for continued liquidity pumping in the United States, not to mention the global jitters stemming from the precarious situation in Syria.

Source: Bloomberg Important Disclosure Citi analysts” refers to investment professionals within Citi Investment Research and Analysis, Citigroup Global Markets and voting members of the Global Investment Committee and Global Portfolio Committee of Citi Private Bank.

This document is based on information provided by Citigroup Investment Research and Analysis, Citigroup Global Markets, Citi Private Bank and Citigroup Alternative Investments. It is provided for your information only. It is not intended as an offer or solicitation for the purchase or sale of any security. Information in this document has been prepared without taking account of the objectives, financial situation or needs of any particular investor. Accordingly, investors should, before acting on the information, consider its appropriateness, having regard to their objectives, financial situation and needs. Any decision to purchase securities mentioned herein should be made based on a review of your particular circumstances with your financial adviser. Investments referred to in this document are not recommendations of Citibank or its affiliates.

Although information has been obtained from and is based upon sources that Citibank believes to be reliable, we do not guarantee its accuracy and it may be incomplete and condensed. All opinions, projections and estimates constitute the judgment of the author as of the date of publication and are subject to change without notice.

Prices and availability of financial instruments also are subject to change without notice. Past performance is no guarantee of future results.

Subject to the nature and contents of the document, the investments described herein are subject to fluctuations in price and/or value and investors may get back less than originally invested. Certain high-volatility investments can be subject to sudden and large falls in value that could equal the amount invested. Certain investments contained in the document may have tax implications for private customers whereby levels and basis of taxation may be subject to change. Citibank does not provide tax advice and investors should seek advice from a tax adviser.

Investment products: (i) are not insured by the Federal Deposit Insurance Corporation; (ii) are not deposits or other obligations of any insured depository institution (including Citibank); and (iii) are subject to investment risks, including the possible loss of the principal amount invested.

nomic releases in the region indicates that the worst may be over and that, in the lon− ger−term, assets in these countries are fit to produce good results.

“We’re through the worst of the crisis but it doesn’t mean individual countries won’t continue to suffer significant chal− lenges,” Steve Ashley, head of global mar− kets at Nomura said.

Regardless of what analysts may project, the situation is wobbly and called for cen− tral banks to step in, such was the extent of assets weakening. India’s rupee slid significantly against the U.S. dollar, with local currencies also suffering in Turkey, Indonesia and Brazil, weakening assets to degrees that warranted drastic interven− tion from local regulators.

In their shoring−up efforts over the past period, Morgan Stanley estimates that emerging market central banks –excluding China’s – have used 2% of their reserves. Cer− tain countries are naturally more affected.

Indian reserves dropped by 5.5%, while Tur− key and Indonesia used up 12.7% and 13.6% of their backup, respectively.

SYRIA WORRIES Another key element that motivates market outlooks is how the continu− ously escalating violence in Syria will affect the approach of developed econ− omies. As the Budapest Business Jour− nal goes to print, the United States appears on the brink of launching a limited military offensive against the Assad regime in retaliation for the use of chemical weapons.

From an investor’s perspective, the implications of what essentially entails the start of another war for the States are manifold and carry a multitude of concerns. Besides the fact that the costs of military actions will weigh heavily on the U.S. economy, it will also intensify political tensions, with Russia having a vested interest in the situation and rela− tions between Barack Obama and Vladi− mir Putin frosty, to say the least.

That of course doesn’t even come close to fully appreciating the effects of continued violence and the involvement of the Western world in the Middle East.

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News 07

Budapest Business Journal | Sept 06 – Sept 19

LEFT-WING COALITION TAKES FIRST STEP

DAVID LANDRY

In late August, Bajnai and MSzP Party Chairman Attila Mesterházy announced they had finally come to a compromise on a unified nationwide slate of candidates so that their parties would not split the left−wing and Orbán−disenchanted vote – except for at one position, that of Prime Minister.

After at least two months of wrangling, it was decided that MSzP would run candidates in 75 of the 106 constituencies, while E14−PM hopefuls will be fielded in the remaining 31. Whether Bajnai or Mesterházy ultimately sits in the big chair after besting the Fidesz−KDNP slate would be determined by the popular vote:

GORDON BAJNAI, HEAD OF EGYÜTT-PM, WITH MSZP CHAIRMAN ATTILA MESTERHÁZY

he who gets more wins the position of prime minister.

The first effort of the left−wing coalition has proved fruitful: in the August 31 by−election in the Szigetszentmiklós constituency, the joint candidate put forth by E14−PM and MSzP in tandem with former prime minister Ferenc Gyurcsány’s Democratic Coalition (DK) party, Sándor Ladányi, earned 52.6% of the vote against a slate which also included representatives of LMP and Jobbik plus independent candidates.

While the winners may spin by−election results to exaggerated importance – this one saw under 31% voter participation and just 680 ballots cast – the left−wing parties were able to reiterate the message put forth by Bajnai upon kicking off his candidacy about one year ago.

The official statement from E14−PM called Ladányi’s victory “an important first step in the 2014 campaign”, with promises that the

aligned parties “will mutually support each other’s individual parliamentary candidates.”

Even as a unified front, the left−wing coalition has quite the row to hoe yet: polls of likely voters undertaken in August by Hungary−based Nézőpont and Ipsos show Fidesz−KDNP holding a steady lead, even over MSzP and E14−PM combined. Mid− month, Nézőpont reported that 32% would vote for the ruling coalition, a number that has wavered between 31% and 39% since October 2011; in that poll, MSzP showed 11% support with 8% (down from 10% a month earlier) for E14−PM. One week later, Ipsos polling had Fidesz support at 24% among registered voters, while MSzP drew 15% and E14−PM just 4%.

DK managed about 1% in both polls.

The upside for Bajnai’s hope to draw together the dissatisfied is that in the Ipsos poll, some 46% stated no preference or described themselves as “undecided”.

THE THINK TANK PAPER The Central European Media and Publishing Co. (CEMP) has sold business daily Napi Gazdaság to economic think tank and research center Századvég Gazdaságkutató, known to be close to ruling party Fidesz.

KRISZTIÁN KUMMER

The transaction didn’t affect the former online division of the newspaper, www.napi. hu, which remains the property of CEMP together with the event management division and the ‘100 Richest Hungarians’ magazine.

Former editor−in−chief Tamás G. Korányi has resigned, but kept his position as edi− tor−in−chief at www.napi.hu at the request of CEMP. Balázs Rónai, former managing direc− tor of Napi Gazdaság becomes publishing manager of www.napi.hu.

György Barcza, a leading analyst at Száza− dvég and former analyst of ING and K&H Bank, has been appointed as new editor−in− chief. Two days after his appointment, Bar− cza unfold his vision on the pages of Napi.

According to his introductory article, he’d like to follow up the events of the ongoing economic crisis as a whole and in detail as

well, besides meeting the business daily’s role to provide relevant information as com− pletely as can be. “I am confident, that we will succeed in winning economic and politi− cal leaders to express their opinion of possi− ble scenarios for the future on these pages.

Hungary has chosen a different path in cri− sis management from the general route. The development of economic processes is even more exciting now,” he wrote.

Buying newspapers is not exactly a lucra− tive business nowadays, at least from the point of view of the number of copies sold.

But the management sees more opportu− nity in the transaction than danger. “Száza− dvég is a profit−oriented enterprise and its intent is to continuously increase its market presence and turnover,” Péter Keresztesi, the newly appointed managing director of Napi Gazdaság Kiadó Kft, told the Budapest Busi− ness Journal. “A roughly balanced financial newspaper that leads the readership statistics seems an interesting investment target. The new owner would like to see profit, of course, in the mid− or long−term, but when an eco− nomic think tank and a business daily meet, there are many synergies, both parties can benefit,” he added.

Keresztesi also shared his outlook about the future of the 20−year−old business daily. “We don’t want to abolish anything that is work− ing well, but we’d like to see a more modern,

more informative newspaper with new sec− tions, new content and a cleaner than current layout,” he said, pointing out international examples such as the Financial Times. That analogy could not be accidental as the layout and colors of Napi are already very similar to those of the benchmark newspaper.

“Content is given based on the accu− mulated know−how of two decades in the newspaper, and the existing research back− ground at Századvég Gazdaságkutató, but we will try to take advantage of our domes− tic and foreign relations as well. We’d like to offer exclusive information and a deeper insight to our readers and in connection with major events, we will react quickly and give voice to decision−makers,” Keresztesi said emphasizing the new own− er’s expectation for credibility, profession− alism and the rapid increase in the number of subscribers and readers.

But readers might be a little bit confused, as the news site www.napi.hu remains in the possession of CEMP, while Századvég cre− ates a new site, Napi Gazdaság Online, for its own purposes. However, the ownership separation of print and online media is not without precedent in Hungary. In spring 2011, Word Communications bought the weekly magazine Figyelő from Sanoma, but the former owner kept the publishing rights of FigyelőNet FN.hu.

Source: Szilárd Koszticsák / MTI

With six to eight months to go before the 2014 Hungarian parliamentary elections, former prime minister Gordon Bajnai’s vision of a unified front against the two−thirds majority currently held by the Fidesz− KDNP coalition has yet to come to pass, but recent events may indicate that Bajnai’s Together 2014−Dialogue for Hungary (E14−PM) party has turned the corner on derisive in−fighting with would−be partners MSzP.

SÓLYOM NEVER STOP TO DELIVER RIDDLES Although speculation still outnumbers hard facts when it comes to the newly launched Sólyom Hungarian Airways, company leaders reveal fresh details almost every week, making the buzz around the carrier ever more loud.

KRISZTIÁN KUMMER

While mysteries around the new airline have yet to be solved, the bright outlook outlined by the managers seemingly can’t be overshadowed by the doubts of market analysts.

For example, ticket sales for flights on Sólyom Hungarian Airways (promised to be released on August 18) still hadn’t been opened when we went to press in the first week of September, hence the routes are also unknown, but CEO József Vágó claimed in an interview with local news site origo.hu that the first charter flights might start within weeks and scheduled flights in early October. Or another example: just one leased Sólyom Hungarian Airways aircraft – a Boeing B 737−500 type aircraft – has been introduced in Budapest on August 18, but within hours it had left again for the UK’s Bournemouth (for parts. But Vágó claims that a fleet of 12 planes will be in operation by the end of this year; so many, in fact, that Budapest Airport will be “forced” to reopen its Terminal 1 for low cost airlines.

The names of the secret backers from the Middle East and the company business plan will be released soon, according to the CEO, who emphasized, that everyone who has seen the plans has been very impressed.

While the whole country is waiting for the real introduction of Sólyom, the company surprised analysts and the public by buying a 10% stake in marketing startup Sales One and adding the tri−colored Sólyom logo to four premium grocery items.

But even here there is intrigue: former Sales One co−owner Béla Janicsek has been in custody since May 23 on high−level VAT fraud charges involving up to nine enterprises licensed to him, and alleged present co−owner István Attila Lévai was involved in a bribery scandal in Russia, and has been deprived of his rank of brigadier−general on grounds of unworthiness.

BBJ

2Business insight

Planes, trains and automobiles going solo

S.T. DUPONT BUDAPEST ANDRÁSSY AVENUE 3.

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A GOOD LEADER MUST BE FLEXIBLE Renaud Capris has taken over Dalkia Energia in hard times, with the Hungarian energy sector under pressure from the government’s price reduction plans and cuts in feed−in tariffs. We ask the CEO about the new plant in Pécs, regional differences and the strategic alliance between the government and Dalkia Energia.

KRISZTIÁN KUMMER

Q

You took over Dalkia’s Hungar− ian unit only a few weeks ago.

As the new CEO of the company, what are your first tasks to fulfill?

A I might be new here in Hungary, but Dalkia is not. As a successor of Prometheus Ltd., it has more than 40 years of experi− ence on the Hungarian market. We have made more than HUF 65 billion of invest− ments and have quite a long history in gas and renewable based energy produc− tion and service. Our latest investment is a straw−run heating boiler for district heat− ing in Pécs, in addition to the existing wood chip−based plant, which is an uncommon technology even for Dalkia. We decided to use resources from around Pécs, but it is really an achievement from both a busi− ness and a logistics point of view, as we have to acquire 240,000 tonnes of straw per year. So my first task is to overview the suc− cessful installation and operation of this new plant in its first heating season. Due to this new technology Pécs will be the first major city in Hungary – and Central Europe – where district heating comes from com− pletely renewable energy resources.

Q

Your predecessor, Gérard Bour− land spent 12 years in Hungary.

Did he leave you some advice as to what to focus on or pay particular attention to?

A It’s not very country specific, but I have learned to never copy/paste the business model from one country to another. It is a common mistake of foreign companies to copy rules from another country and oblige

STORY HIGHLIGHTS ■

Feed-in tariff in its existent form was not sustainable in the long-term ■ Strategic partnership with the government is a good tool to establish a platform for regular cooperation

co−workers to adopt them. A good leader must analyze the local context and be flex− ible. Of course, Dalkia has a basic global business model, but it must be adapted to the local environment.

Q

It’s very hard to copy a global business model here in Hungary as legislation changes so often.

You worked in Czech Republic and Bul− garia recently: how does Hungary differ from the two countries?

A Dalkia’s core business is energy effi− ciency and the operation of district heat− ing networks. This is something common which is the case with Dalkia everywhere around Europe, wherever it is present.

But, for example, in France district heat− ing is not as widespread in medium− or small−sized cities as in Central Europe.

Frenchman Renaud Capris gained his engineering degree from the Technical University ESME SUDRIA. The 46-year-old has worked for Dalkia for 22 years. He has an extensive experience in Central and Eastern Europe as he worked previously as CEO of Dalkia Bulgaria and in Czech Republic for 12 years. Married and a father of one, he speaks English, German and Czech as well as his native French.

CV

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2 Business

Budapest Business Journal | Sept 06 – Sept 19

One of the main reasons behind our suc− cess in this region is the prevalence of district heating networks.

Another difference is how countries reg− ulate prices. In Bulgaria, the pricing of heat and electricity is very similar to the Hun− garian model, where each and every dis− trict heating network has its own regulated price. The other methodology is the price cap, used in Czech Republic or Poland, where – based on the type of heating fuel – every network operator has a cap price they must not exceed. The first kind of regula− tion does not encourage operators toward making investments and more efficient sys− tems as the price is always adjusted to pro− ducer prices. However, in the second case plant operators are interested in achieving the lowest possible production price to gain more profit.

Q

The Hungarian government has reduced household energy prices by 10% and intends another 10% cut in October. How have these regulations affected Dalkia and its operation?

A I must admit that we are very different from the large electricity market players, as we produce heating for local purposes.

Our concern is district heating networks, as they are very fragile right now. The sector is already at the level of zero, or almost zero, profit and another cut could – let’s put it this way – further increase the pressure. I think the worst−case scenario would be some bankruptcy in the sector, as the cheapest way for citizens to be heated is via a dis−

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ter−productive to focus on producing and selling as much energy as we can than to anticipate and to promote energy efficiency.

IT IS A COMMON MISTAKE OF FOREIGN COMPANIES TO COPY RULES FROM ANOTHER COUNTRY AND OBLIGE CO-WORKERS TO ADOPT THEM trict heating network. Having compromised that, customers would have no other option but some more expensive alternative. So I think we must understand the efforts of the government, but with too much pressure, the price paid by citizens could be higher than before, even with two 10% cuts.

Q

How much do external cir− cumstances, like price changes in natural gas or crude oil, affect Dalkia?

A Of course, unit prices are very impor− tant in the final energy price, but from the point of view of households, energy effi−

ciency is more important. I think there’s more potential to decrease the final amount on bills that way, than through [lowering] unit prices. By energy efficiency you can decrease consumption by 30−40% some− times.

Q

Isn’t it counter−productive to promote energy efficiency. Isn’t your goal to sell as much energy as you can?

A You can approach this question like that, but it’s the philosophy of Dalkia that we should promote energy efficiency. Based on our long−term experience, it’s more coun−

Q

As far as I know, Dalkia keeps energy efficiency in mind while producing energy too. But has the recent cut in co−generation feed−in tariffs affected your efforts on energy efficiency?

A It affected us very seriously and had a direct impact on the profit of Dalkia. It was clear for us that the feed−in tariff in its exis− tent form was not sustainable in the long− term. We agree that clear rules must be established based on the EU directive to promote co−generation energy produc− tion, but only in an effective way. Subsidies should be given only to the most energy efficient producers, not to everyone.

Q

Dalkia Energia signed a strate− gic partnership agreement with the government in April. What are the advantages of this kind of coop− eration?

A It’s a good possibility to have a construc− tive discussion and create some clear stra− tegic goals with the government. This kind of partnership is a good tool to establish a platform for regular cooperation. We are at the very beginning, we just had our first kickoff meeting, but it proved to be very promising. I hope we have found some part− ners with a real interest in our position, and that it will be possible to improve energy efficiency goals and methods, regulations and rules with their help.

EXPERT OPINION

MUCH MORE THAN JUST ‘DRINK AND DRIVE’ István ZSOLDOS

NOTE: ALL ARTICLES MARKED E XPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILIT Y

S

Péter Simon VARGHA

Diána SZŐKE

elf-driving cars (aka autonomous or driverless cars) can operate without a human at the wheel, and effectively make chauffeured cars available on demand, for everyone, at a cheap price. Using lidar (laser-operated remote sensing), radar, GPS and other forms of computer technology, they investigate their surroundings, interpret incoming environmental information and choose their navigation paths accordingly. They sound like science fiction, but may become commercial by 2020 and the first prototypes are already on the roads in the United States. The consequences are wide-ranging, potentially affecting settlement structures, car ownership and industry, mass transportation, traffic rules, and even pedestrian behavior.

Self-driving cars would boost car use. The very young and the very old, who cannot drive and could not afford taxis, would use cars a lot more. Long-distance commutes would become more popular – you could sleep, work, read or even watch TV while on the road. New business and distribution models are likely to spring from this. Some jobs, like taxi drivers, would disappear, while others would come into existence.

Cars could largely replace public transport. People would become more likely to opt for taxis, since self-driving cabs would be immediately available. They would presumably be cheaper than today’s taxis, since a large part of the current fare is the drivers’ wages (and the time he or she stands idle). As a result, taxi pricing would be dynamic, consisting of fuel cost plus a premium for scarcity in busy times.

Traffic management would be transformed, potentially boosting the capacity of existing roads. Cars could update traffic conditions in real-time and route themselves on less congested roads. If all cars have a self-driving mode, and can communicate with each other, you may not even need traffic lights in cities; cars could simply slip into the gaps between other cars. In long-distance travel, cars could drive very close to each other in large convoys, saving both fuel and space. Updated traffic rules would be needed to meet new pedestrian and cyclist habits.

Self-driving cars could also affect settlement patterns.

As commuting becomes cheaper and less of a hassle, living in the suburbs would be less cumbersome. So the real estate premium on being close to city centers could decline. Meanwhile, inner cities could become more attractive, with less congestion, more space (i.e. no parking cars), and less pollution (thanks to more effective traffic management).

Self-driving cars would probably change car ownership.

Currently, car ownership is very inefficient: private cars are typically not used about 95% of the time, and a large amount of capital just sits there. If you don’t own a car, you could rent the most suitable type when you want it, delivered straight to your door. If car use increases, but the number of cars potentially drops, there would be a lot higher annual running of individual cars, and a higher turnover of car stock as well. This would foster innovation among car manufacturers, enabling flexible production methods to satisfy quickly changing fads and fashions.

Given the faster turnover of the car stock, more fuel-efficient cars would spread faster.

Finally, if most cars were self-driving, traffic accidents would likely become nearly non-existent. (By 2012, Google’s selfdriving cars had clocked up half a million kilometers accidentfree.) Currently more than one million people die in traffic accidents globally each year. Lower accident risks mean insurance premiums could drop, and cars would be smaller and lighter.

Of course we cannot predict all the changes that self-driving cars would bring, and there are likely to be unforeseen repercussions. We are only at the beginning of the road. It will surely be an interesting ride…

Budapest Business Journal | Sept 06 – Sept 19

PLANES, TRAINS AND AUTOMOBILES GOING SOLO Scientists have successfully developed solutions that are now capable of controlling almost all modes of transportation.

Proponents see the dawn of a fully efficient and fully safe global transport system, while skeptics argue that putting machines in charge is a disaster just waiting to happen.

GERGŐ RÁCZ

The greatest headway in automation can be seen in the case of trains. The choice is obvious: the rail grid provides a closed system that can easily be monitored, there is little risk of a robot−driven train taking a ‘wrong turn’ and subway sys− tems already have a control structure that can be adapted to increased levels of automation.

out of commercial flight altogether is also something that has been discussed for a while.

An operator of a private plane rental service says that humans are now basically redundant in air travel. Given the extent pilots already rely on technology for naviga− tion and controlling the craft, he believes that the human element could be removed altogether were it not for the traveling public’s perception.

“Even though the autopilot could do a job as well or even better, travelers feel reassured by the fact that a captain is in charge and wouldn’t stand for an unmanned cockpit,” he said.

Of course, the main concern any skeptic may raise is how an automated system would handle an emergency. Textbooks for pilots still prescribe a very ‘human’ way for responding to crises, namely calmly going through a detailed checklist, tick− ing off all concerns one−by−one, including adequately delegat− ing tasks to all members of the crew to address the situation.

A machine would probably encounter certain man− agement problems in such issues. Of course, a techno−

Photo: Melody Joy Kramer/Flickr

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2 Business

It is little surprise that many major cities have shifted to remote controlled or completely automatic subway schemes.

The 21−kilometer Copenhagen network is already fully auto− mated, with similar arrangements in Kuala Lumpur, Dubai, and Tokyo, and others already in the process of following suit.

Hungary is one of them, with the new M4 metro line sporting modern Alstom trains that are set to run auto− matically sometime in the future, although not imme− diately after the investment is completed and finally opened to the public next year.

There are, however, safety concerns highlighting poten− tial risks. London’s own ambitions to fully automate its ‘tube’ system were postponed until 2020 after a child fell in front of a train and a human monitor watching events via closed circuit camera had to intervene, since the train’s sen− sors didn’t detect the obstruction.

IN THE AIR Unmanned aerial vehicles remain in the focus of public and scientific attention. While remote controlled drones have earned themselves an unwanted reputation for their predomi− nantly military application, there is a broad range of peaceful uses being considered. And the idea of taking human control

phile may say that an intelligent system has a far bet− ter chance of avoiding emergencies altogether since the human element, which is often the cause of disas− ters, is not a concern.

ON THE ROAD The latest craze is letting everyday cars hit the road without a human behind the wheel. Admittedly in an experimen− tal stage, internet−search giant Google have invested heav− ily in the process of developing an automated car that is fit to drive around in traffic and major manufacturers are also showing interest.

Audi and Lexus have already announced that they have automated vehicle technologies in development. Their meth− ods mainly involve combinations of various sensors installed on the exterior of the car combined with exiting range−mea− surement technologies.

This year’s CES, the international auto industry fair revealed that major manufacturers are all considering including auto− mation in their designs in some form and to some extent.

It is as yet unclear how consumers might respond to the notion were it to become a commercial reality rather than a handful of prototypes, not to mention the authorities.

BBJ

3Special Report Ethical hackers: the sheriffs of cyberspace A digital retreat

12-13 20-21

TOP QUALITY OFFICES (+36 1) 429 50 50 I www.simmoag.hu

IT The ubiquity of computers and everything digital is also birthing new threats and challenges to users, individuals and companies, as well as the security companies serving them. The situation is compelling IT professionals to constantly develop themselves to play their role in the economy while others are actually considering stepping out of the common digital space as a result of all that has changed.

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Budapest Business Journal | Sept 06 – Sept 19

ETHICAL HACKER S OF CYBERSPACE Ethical hackers are not (always) poachers turned gamekeepers, but merely experts that are open to do something new and useful. Only a handful of ethical hackers are trained every year in Hungary, but they can easily find a job after finishing the course KRISZTIÁN KUMMER

According to a study by Symantec from 2009, cyber crime has already surpassed illegal drug trafficking as a criminal mon− eymaker. From month to month identity and data theft cases involving giant com− panies ‘enjoy’ high−profile media coverage.

Yet few people know that, last year, nearly a million people were the victims of some kind of online crime in Hungary alone, according to Kürt Akadémia, one of the few educational centers where ethical hacking can be learned. From SMEs to huge inter− national banks, from social network sites to top−secret national databases, every bit and byte is a possible target to a cyber attack (sometimes even peacemakers and nuclear reactors too). Responsible IT secu− rity experts spend fortunes on perimeter defenses but just how efficient they are can only be tested in one way: cracking your way into the system. That’s where the ethi− cal hackers come in.

THE JOHN WAYNES OF CYBERSPACE An ethical hacker is a computer and net− work expert who attacks a security system on behalf of its owners, seeking vulnerabil− ities that a malicious hacker could exploit.

To test a security system, ethical hackers use the same methods as their less prin− cipled counterparts, but report problems

STORY HIGHLIGHTS ■

Ethical hacking is one of the highest paid jobs today ■ Candidate must go through ‘c’ type national security screening

instead of taking advantage of them. Eth− ical hacking is also known as penetration testing, intrusion testing and red teaming.

An ethical hacker is sometimes called a white hat, a term that comes from old West− ern movies, where the ‘good guys’ typically wore a white hat and the ‘bad guys’ black.

Businesses and government organiza− tions that are serious about their network security hire ethical hackers and penetra− tion testers to help probe and improve their networks, applications, and computer sys− tems with the ultimate goal of preventing data theft and fraud.

As you have probably already figured, ethical hacking is based on trust and reli− ability as much as on IT expertise. Just as one wouldn’t like to see psychopaths fully trained as snipers, white hats that turn to the dark side could cause ten times more trouble than some teenagers trying to break into the CIA for LOLs. CRÈME DE LA CRÈME That’s one of the reasons why ethical hack− ing is not trained at every higher education institute in the country, even though there’s huge interest to the subject. “Only 20 peo− ple are accepted to a course, regardless of the number of candidates. We believe that this kind of specialist shouldn’t and prob− ably couldn’t be ‘mass produced’. In order to teach the mind−set, which might even be humiliating for malicious hackers, we need focused group work and a lot of practice,” said Dea Frankó Csuba, head of the institu− tion at the Kürt Akadémia.

But for those who are admitted to the academy, can afford to pay the huge HUF 1.9 million bill for the 240 hours of training,

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The two separate wings of the sunlit Twin Office Center are joined on the ground floor by a central reception area. 6,000 m² of easy to split offi ce space with its bright corridors are available to let on fl oorplates of 600 m² each. The office building is situated near Béke tér, in the area between Váci út and Városliget, the City Park. It is easy to reach from North Buda via Árpád híd, from Róbert Károly körút and from the motorway M3. Twin Office Center also has good public transport connections and a cycle track passes by the building.

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Budapest Business Journal | Sept 06 – Sept 19

R S: THE SHERIFFS WE BELIEVE THAT THIS KIND OF SPECIALIST SHOULDN’T AND PROBABLY COULDN’T BE ‘MASS PRODUCED’

and pass the final exams, employment will almost certainly be easy to find. According to Kürt, demand is growing exponentially for ethical hacking professionals, and it is no coincidence that the ethical hacker is one of the highest paid jobs today.

A survey among students showed that 90% of the graduates earn more after cer− tification acquisition and more than half of them were promoted at their existing work− place or found a better job before the end of the training. According to the data, learn− ing the tricks of ethical hacking profession promises to be one of the best investments of the next few years.

In Hungary, qualified engineering and IT professionals have the highest incomes, even among the entrants on the market. The return on investment on the most common degree in mechanical engi− neering schools will come back in 32.5

NATIONAL HAZARD “Our students come from very different backgrounds,” says Frankó Csuba. “A typi− cal candidate is working in the IT sector, as an operator or developer, but there are also students who are simply interested in infor− mation security, including ethical hacking.

And there is always a brave candidate, who has no pre−qualification in the subject, but is attracted by the intellectual challenge and the possibility to learn new skills and wants to join the course,” she explains. “All three types of candidates are welcome. Of course, one needs a different amount of energy invested to successfully learn ethi− cal hacking and be able to do 240 hours of training through almost a year. But we are looking for the necessary motivation in stu− dents at the interview.”

But being smart and capable are not, alone, enough to get on the course. Given the sensitive scope of the material, stu− dents are assessed in line with the domes− tic national security filter criteria. “It is not good enough just to be professional. Integ− rity, psychological stability and reliability are essential,” the head of institute says.

What this means in practice, is that can− didates must go through ‘c’ type national security screening. This is the most strin− gent control, where asking about personal data is normal and necessary. The candi− date is asked about alcohol and drug habits, having relationships outside his or her mar− riage, sexual orientation, general domestic and international relations. The goal is to see if there’s any risk to national security in case the student receives learns how to break into computer systems. Moreover, it is important to make sure that the candi− date is not a potential blackmail target.

INSTANT GET The thorough filtering does have a signifi− cant advantage: training is national secu− rity approved. The domestic ethical hacker training emphasizes the development of specific problem−solving skills and some custom−tailored hacking tools to solve dif−

ferent problems and also to transfer the hacker mindset. Students will learn about the currently available hacker toolkits and get access to the resources from which they can upgrade their professional skills after training.

Some students go to work abroad, typ− ically in the EU. Others find employ− ment in the Hungarian public sector, in

national defense or the private sector.

And some have even established a com− pany and work as independent experts on both domestic and international markets. “Based on our experience, the acquired knowledge is an excellent springboard for graduates, regardless of sector and geographical boundaries,” Frankó Csuba says.

CASE STUDY

HOW TO ‘START UP’ AN OFFICE

Startup companies come in all forms. Over the past few years they have become a synonym for businesses going against mainstream – newly created enterprises full of inspiration and creativity in a phase of development. Different customs and different needs call for a creative environment, dedicated to peak potential.

W

hen an address and a phone number is not enough anymore, startups need an office that enables social contacts, avoiding the drawbacks of a home office such as distractions and lack of professional appearance. For a growing startup, finding the right office space can be a real challenge. Making the transition can be both exciting and stressful, but finding the best solution is easier than you might think. Common startup office needs are flexibility, low risk, and low overhead costs.

S IMMO Hungary offers just the right alternative for enterprises thinking out of the box, understanding that we spend one third of our day

in the office, effectively making it our second home. Many startups pride themselves on having hip workspaces – S IMMO has ideas, along with an experienced professional and serviceminded team to make such dreams come true.

City Center and Buda Center office buildings are both prepared for startup needs, offering bright offices making the difference in how people feel, think and perform. There is proximity to public transportation, and bicycle racks and showers are also available for cyclists. Green areas granting soft light in office spaces surround both buildings. Flexible partitioning options offer a great solution for any startup. Small offices with units from 20-40 sqms are available, beside more regular sizes ranging from 50-70 to 200-500 sqms.

Twenty-four hour reception and security services enable startups to get fit for their size and ready for growth. Beside ready-to-move, furnished offices, creative ideas are welcomed as to how to shape spaces – meeting rooms, colorful walls, plants? No problem at all. Buda Center offices offer a view over the hills of Buda with proximity to highways and public transport alike.

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months on average, while the cost of IT specialist training is returned in only 16 months, and that’s from starting in the business as a rookie.

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Budapest Business Journal | Sept 06 – Sept 19

YOUR DATA IS OUR DATA

STORY HIGHLIGHTS ■

Telco operators and internet service providers required to respond to data breach at speed ■ The new regulation is binding in all 27 member states

The European Union is about to put in place a more uniform data protection law that will be binding for all member states.

The first steps have already been taken: as of August 25, telecom operators must report data breaches to national authorities within 24 hours.

ZSÓFIA VÉGH

The European Commission has intro− duced a standardized regulation that requires telecom operators and Internet service providers to respond to any data breach at speed. If a provider detects a personal data breach, it has to inform the competent national authority of this within 24 hours. It also needs to inform

the person whose data has been compro− mised if the breach is likely to negatively affect their privacy. Data theft, loss, unau− thorized access to customer data – includ− ing emails, call data and IP addresses – all constitute a breach.

Unlike the previous directive, the new regulation is binding in all 27 members states. In Hungary, the introduction of the law may not bring about much change. Public electronic communica− tions service providers already reported to the National Media and Infocommu− nications Authority (NMHH) once they detect a breach. Of more significance is the fact that the EU is having countries adopt a uniform legislation, signaling how it is tightening rules on data protec− tion. Each member state implemented the 1995 directive into national laws in a different way, causing a legal head− ache when, for example, personal data had to be transferred across borders. To

CASE STUDY

NOTE: ALL ARTICLES MARKED CASE STUDIES ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILIT Y

REOPENING OPPORTUNITIES The Váci188 Office Building – a former bank headquarters – has reopened as host to dynamically developing Hungarian ICT, financial services and consulting firms. The Budapest Business Journal asked Orco Property Group’s leasing and marketing manager Zinaida Vojnár about the reopening.

Q: Budapest is full of empty office spaces and real estate developers are very cautious, to say the least. How did you manage to re-let the building?

A: With the ongoing economic challenges, tenants have become very cost sensitive and are looking for offices with the best and most flexible terms. Váci 188 is an ‘A’ category office building with many valuable features, yet it is able to offer highly flexible conditions and very attractive pricing, addressing not only tenants currently occupying ‘A’ category offices.

The reopening was possible as a long-term lease agreement had been signed with a business strategic group consisting of Hungarian ICT, financial services and consulting firms.

They chose Váci 188 because of the excellent location and accessibility and their aim to upgrade from a ‘B’ category office building – the time was right to take advantage of the market.

They have already occupied 1,700 sqm on the second floor and are fully operational.

Q: What features can Váci188 offer to present and future tenants?

A: The building is owned by ORCO, financed fully from equity without any bank loan, thus we can directly negotiate business terms to make them work and offer offices from 100-12,000 sqm for immediate occupation. The office building is well known, and is easily accessible by car or public transport, being between the Duna Plaza Shopping Center and a Tesco hypermarket. The view of the Danube and Buda hills creates a highly pleasant work environment along

Zinaida VOJNÁR Orco Property Group Leasing and Marketing Manager

the otherwise busy Váci office corridor. The bank compliant data room offers specific benefits for tenants with specific/high-level IT needs.

Q: For whom do you recommend the Váci188 office building?

A: For those who currently reside in lower category offices or in a residential property, but want to upgrade, and generally to anyone seeking quality/efficient space at competitive rents.

Although Váci188 is not a newly built office building, it still has all the ‘A’ class services and features – at a very good price. Besides the refurbished interior, the panoramic Danube view and the bank compliant data room, Váci188 also offers many additional features like a spacious parking garage and an in-house restaurant and café, as well as a free-of-charge parking zone.

put an end on this fragmented legal sys− tem, the commission plans to introduce a single data protection law.

Explicit, freely given, specific and informed – so the new EU data protection proposal described the consent needed from individuals for organizations to be able to lawfully process their personal data. Silence would not equate with agree− ment, the proposal would require a state− ment and/or “clear affirmative action”.

Given the growing number of breaches, this practice could in part restore cus− tomers’ trust in firms handling their per− sonal data. Yet the precise wording of the regulation is taking time to formulate.

Industry lobbying and those member states against the idea of “active consent” are working to water down the general requirement from explicit to unambigu− ous. The former would apply only to orga− nizations wishing to process sensitive data that reveals racial or ethnic origin, political opinions, religion or philosoph− ical beliefs, trade−union membership, genetic data or information concerning individuals’ health or sex lives.

Had it been approved, it would be a relief for companies handling much personal data. Aside from less red tape, they would need no counsel when, for example, data should be transferred to a parent company as a result of centralization or business streamlining process.

The European Data Protection Supervi− sor, which advises EU institutions on data protection and privacy matters, would like to see the original version maintained. So would many people. Under current Hun− garian law, one’s data can only be used for the purpose it was originally required for. Yet all too often, people note that the number of unsolicited sales offers multi− ple after they have signed a new contract with a bank or entered or joined a social

network. This can be the result of a data breach, but also of the practice of using personal data for purposes other than pro− vided for – commercial in the main.

A REAL ASSET Today, personal data is a type of asset for companies, which use their access to it to gain a commercial advantage, the EU’s Competition Commissioner Joaquim Almu− nia has said.

Possessing information on a customer’s sports club membership or ethnicity can indeed give a firm an edge: based on the above it can draw consequences on the per− son’s preferences and recommend a new running web shop or send samples of skin foundation to them. Using such informa− tion may seem unlawful but it is not. A busi− ness can process personal data for commer− cial purposes so long as it does not have a significant effect on the rights of the per− son concerned. “Legitimate interests” is the legal basis business use to handle pri− vate data with the owners’ consent. The amended legislation will likely leave room for this provision.

Many websites use cookies to track user behavior, so they can screen what interests users and tailor advertisements to targets.

If approved, explicit consent will cause a problem in this field, as it will make behav− ioral advertisement more difficult. (E−pri− vacy consent rules already exist; this allows Internet users to choose whether to receive online marketing materials.)

Little wonder that companies are not wel− coming about the new regime. Some say the Commission is testing waters with the recently introduced data breach notification system. Whether the findings will make the proposed draft more forgiving towards businesses should become clearer in Octo− ber, when voting at the European Parlia− ment is scheduled.

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Budapest Business Journal | Sept 06 – Sept 19

SMARTPHONES KNOW YOUR FOR BUSINESS NICHE IN IT EXPERT OPINION

ANDROID Developed by: Open Handset Alliance, led by Google Latest version: 4.3 (Jelly Bean) – released on August 23, 2013 Android’s share of the global smart− phone market, led by Samsung products, was 64% in March 2013 according to an article in The Guardian on August 1. In July 2013 there were 11,868 different models of Android device, with several screen sizes and eight OS versions simul− taneously in use.

Android is very customizable, and also features a high level of security due to being built on the Linux platform. The handsets it runs on at the mid−to−lower end of the market tend to retail at a lower cost due to fierce market competition between ven− dors. Android Market’s free apps provide users with more possibilities and there are no restrictions on what types of apps devel− opers can create for other Android users.

You can also load it with custom ROMS and firmware, giving business users a flexible and unrestricted platform to work with.

WINDOWS PHONE Developed by: Microsoft Latest version: Windows Phone 8 (8.0.10327.77/ 8.0.10328.78) – released in July 2013 Microsoft is rely− ing on core services (like Office 365) to sell its Windows Phone 8 smartphones to business users, and the familiarity employees may have with Microsoft’s desktop programs is one reason busi− nesses may choose this OS. SkyDrive — Microsoft’s Cloud Storage service – can also be used by business to allow others to view and edit shared documents on the move. SkyDrive itself is integrated well with the broader Win− dows Phone and Microsoft cloud ecosys− tem, giving users a high level of cohe− sion between what they carry out on the handset and what goes on the back− ground, meaning that they can be con− fident that important documents, con− tacts, emails and otherwise are backed up when they need to be.

BLACKBERRY OS Developed by: Research In Motion Latest version: 7.1.0.923 (Black− Berry Bold 9,900) – released on April 15, 2013 BlackBerry’s smart phones are still the big favorite for many businesses around the world due to their full−size QWERTY keyboards and BES (Black− berry Enterprise Server), which con− nects to messaging software like Micro− soft Exchange in order to synchronize contacts, calendars and more. Also, if a Blackberry is lost or stolen, information stored on them can be wiped remotely.

BBM, Blackberry’s proprietary mes− saging system, allows co−workers to instantly exchange messages discretely and in real time without the need for an IT staff. As they come in a range of models and designs (there are around 17 in total) Blackberries can be delegated depending on the workforce hierarchy — with flashier models going to the big cats up top — and low−end end handsets going to the gen− eral workforce.

IOS Developed by: Apple Inc. Latest version: 6.1.3 (10B329) – released on March 19, 2013 Apple’s iPhone OS consumer success hasn’t stopped IT departments from using this operating system in compa− nies. Since iOS only runs on iPhones, opt− ing for Apple’s OS also means that you’re prepared to go for one of its handsets. It has one of the easiest mobile operating sys− tems for employees to get to grips with, and support for Mobile Device Management enables businesses to wirelessly configure their users’ phones, monitor compliance with business policies, and wipe or lock managed iPhones.

Wireless app distribution also makes it easy on iOS to securely distribute person− alized company apps to employees using Wi−Fi and 3G. Microsoft Exchange support means that accessing email, calendar and contacts is simple as it allows users to setup multi ActiveSync accounts, which are com− patible with Exchange Server 2013.

Gergely Herpai

Information technology is one area of the market in which Hungary is steadily moving forward and hiring experts; a trend set to continue for the year ahead. Tímea Tóth, senior consultant in the IT division of Hays Hungary, provides a market roundup and talks about the challenges in sourcing the right skills.

Tímea TÓTH T S Senior Consultant, IT HAYS HUNGARY H

A

lthough some companies have downsized their teams in the past year, many software development companies are expanding and looking for new people to join their organizations.

IT companies in Hungary are now starting to pay more attention to the importance of salary ranges across all levels.

Having acknowledged the primary importance of certain skills sets for long-term business growth, clients are bringing salary offers closer to candidates’ expectations to secure the best talent.

DEMAND FOR NICHE TECHNICAL SKILLS Companies are also scrutinizing the length of selection processes as well, for fear of losing out on the right talent. To this end, they tend to look for candidates with niche technical skills, who are difficult to attract.

The most sought-after skills in the current market include Java and .Net. Despite the fact that trends have reversed in recent months, demand is still high for C++ language and ASP.Net knowledge. We also expect to see growing demand for mobile application development skills, as mobile technology is becoming a thriving platform for content providers.

SOFT SKILLS AS AN INVALUABLE ASSET However important technical skills and attractive salary ranges are, we have noticed a growing preference on the part of HR managers at IT companies for IT professionals with the desired soft skills who can integrate smoothly into their organizations.

Personal competencies cannot be overlooked since IT experts, along with other employees, are the face of a company and inevitably personify the organization during their interactions with stakeholders.

Hard skill expertise alone will simply not satisfy most hiring managers’ expectations any longer.

Companies require specific soft skills across the globe due to the importance of diversity and intercultural values in their company culture. This is more evident as numerous Hungarian developer companies are working on global projects.

So what are these much sought after soft skills? In our experience, hiring managers

most crucially look for a team player attitude, with both local colleagues and team members scattered around the globe. Secondly, we note an ability to efficiently communicate complex business needs and specifications within the organization. Naturally, there are also additional skills specific to each project, but these remain core.

Obviously for hiring managers there is more than just these two points to staying ahead in the IT game. What is key in IT is the ability to refresh your knowledge by attending relevant seminars and obtaining up to date qualifications; it is not possible to overstate the importance of this in a most rapidly developing sector.

THE HARD NUT TO CRACK: SALARY LEVELS From our perspective there has been an intensifying demand for both hard and soft skills, and in turn this has resulted in changes regarding salary brackets across all levels. On the candidate side, IT professionals are becoming increasingly aware of the value of their specialist skills and are therefore raising their salary requirements by an average of 8-10% compared to last year.

THE FUTURE FOR IT Overall, there has been a continuous demand for IT experts with specialist skills in the Hungarian market compared to the post-recession years. The future projections for industry expansion look positive throughout the second half of 2013 and in 2014.

For employers out there we would advise that, first and foremost, always find the right person for the right job. Beyond that, make sure you give your IT professionals the opportunity to grow within their own niche as this will always benefit your company and help long-term retention.

To find out more about how Hays Hungary can help your organization with its recruitment needs in the information technology and other sectors, and to request your free copy of our 2013 Salary Guide and Market Overview, visit hays.hu or call +36 1 501 2400.

hays.hu

NOTE: ALL ARTICLES MARKED E XPERT OPINION ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILIT Y

It was breaking news as the Budapest Business Journal went to press that Microsoft had bought Finnish mobile phone constructor company Nokia – the latter had been facing serious financial difficulties and plummeting market shares. It’s a big change of standpoint for Microsoft: back in 2007, CEO Steve Balmer believed that the original iPhone would never find favor with business users because it lacked a physical keyboard. The BBJ took the opportunity to look at the existing smartphone operating systems, and how they fare in the business world.

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GOING MOBILE WITH SAP Balázs Ablonczy, managing director at SAP Hungary, talks to the Budapest Business Journal about the new possibilities and challenges that mobile systems offer to companies using SAP−based business management.

GERGELY HERPAI

Q

Could you explain how the SAP business management solution can be integrated into mobile systems?

A For years it has been recognized at SAP that mobility is becoming a vital aspect in business life. That’s why our company has made some very important developments and acquisitions as well. In the domain of mobile application development plat− forms, mobile device management and mobile message sending solutions, SAP is actually a market leader.

Q

Why is it so important, if we take into account traditional business processes?

A At SAP we recognized that mobility, meaning “taking everything with you”, has become a trend and ever more peo− ple would like to access business process on the go. To give you some examples, for a business leader to be able to approve a contract on the go, or for a sales manager on a business trip to see on his mobile phone what pipeline is used by his sales team can be both very handy. Or let’s take the example of a chief financial offi− cer who would like to see the state of his stocks while on a business trip. Mobile devices can achieve today all these busi− ness processes. Since many companies are using SAP solutions for their normal back office operations, we propose a com− plete integration to mobility that is com− pletely secure, especially regarding core business information.

Since 2009, Balázs Ablonczy has led the domestic subsidiaries of the world’s largest business software company. He has considerable experience in information technology and management; prior to his position at SAP Hungary, he worked at Magyar Telekom as a senior manager and at Xerox as managing director for the Hungarian and Adriatic region. Ablonczy is married and the father of three children. In his free time he plays tennis, and is vice president of the Hungarian Tennis Association.

CV

Q

Can this mobility trend transform business processes themselves?

A Yes, of course, and the operation of certain industries itself as well. For example, there’s a well−known commer− cial network in Korea that is using huge advertising posters in subway stations with the photo of products on them. The trick is that with a mobile phone using specific software and the QR code tech− nology, people can actually buy those products, specify the amount desired and it will be delivered by the time they arrive at home or to a point of sale on the subway line. Using this solution the trading process itself is transformed.

In Tokyo the SAP HANA system is using real−time traffic analysis – essen−

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FOR YEARS IT HAS BEEN RECOGNIZED AT SAP THAT MOBILITY IS BECOMING A VITAL ASPECT IN BUSINESS LIFE tial for taxi drivers – with sensors placed in many focal points in the city. Our job is to work out similar ideas hand−in− hand with our clients so that in their specific industry we can improve their business process. Thus they can gain a competitive advantage or even find a niche market by using those innovative new mobile solutions.

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According to one study there are 2.5 million smartphones in Hungary, and we have been using these mobile devices for several years now, so it may seem strange that it has taken so long to utilize mobile solutions for SAP as well.

A A few years ago, mobile trends were basi− cally only for retail systems, but SAP’s goal was to utilize these solutions in the business field as well, to ‘unwire’ the enterprise. There’s a new buzz phrase, ‘bring your own device’ or ‘BYOD’, but it can be only achieved if a com− pany has a mobile device management solu− tion that is capable of linking securely and cost−effectively with various devices using different operation systems.

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Budapest Business Journal | Sept 06 – Sept 19

17

XETRA TO JUMP-START BSE The Budapest Stock Exchange is on schedule to introduce a new, widely used trading platform that it hopes will finally boost the meager interest for Hungarian stocks seen of late.

GERGŐ RÁCZ

The BSE is anxious to revamp itself and get the lifeblood pumping after the crisis left bourses in the region shaken.

“Traded volumes have basically been dropping in the past three years, not only in Budapest but also on regional and interna− tional markets,” BSE vice president Bálint Szécsényi said at the end of 2012. As a result the bourse saw an average HUF 10 billion in traded volumes for 2012, which in all respects amounts to spare change when looking at global volumes. The muted inter− est led to a 37% drop in turnover from 2011.

The management of the exchange has commenced a campaign that it hopes will finally be able to lead to some recovery and get money flowing again. As a major part of this effort, and following lengthy struggles and disputes, in early Decem− ber the BSE is launching the Xetra trad− ing system (a widely used platform that it is hoped will convince newcomers about ADVERTISEMENT

“Internationally, this is a common method, with which we want to acknowl− edge our issuers that commit to trans− parency and open competition,” Szécse− nyi said.

BSE AVERAGE DAILY TURNOVER (HUF BLN)

12 11 10 9 8 7 6 Jan

Feb

March

April

May

June

July

Aug

Source: Budapest Stock Exchange

the opportunities Hungary presents). Five of Hungary’s market−leading brokers ini− tially opposed the system on concerns that it will erode the market. A resolution was finally announced last March.

“The biggest winners of the introduc− tion of the new trading system include listed companies at the BSE which can be directly purchased by the nearly 4,500 bro− kers of the 250 European brokerage firms and banks. Their shares will be available to the investors of 18 European countries,” the Budapest bourse’s majority owner, the CEE Stock Exchange Group said in a statement.

Besides the new trading platform, the BSE is also introducing changes to the cat−

egorization system, which are likewise hoped to bring back liquidity that was lost over the past years, and attract new issu− ers that could significantly contribute to expanding the equity market.

Budapest could use new IPOs; one must search the memory rather thoroughly to name the last entrant, and even those that have ventured into public trading have been disappointingly few in number.

Szécsenyi explained in June that what was earlier the ‘A’ category is renamed to ‘pre− mium’, while the ‘B’ category is rebranded ‘standard’. The BSE designed unique logos for both types of issuer that they hope will be widely used in corporate communication.

WARMING UP FOR A REBOUND If the statistics of the year so far are any indication, the Xetra launch in Decem− ber could be the catalyst that brings the Budapest trading floor much closer to its former golden days. The BSE’s latest fig− ures showed HUF 271.7 bln monthly turn− over for July, a whopping 50.5% increase on the preceding month and the highest amount all year.

International and domestic factors all contributed. OTP boss Sándor Csányi sold off a large chunk of his portfolio, MOL chief Zsolt Hernádi anxiously waits to hear whether the Croatian authorities will issue a warrant for him, while Magyar Telekom has had to concede that the European Commis− sion will not be able to scrap Hungary’s sec− toral tax in court.

Exactly which direction the trades will go remains to be seen, but the issuers are prob− ably somewhat concerned. Worries persist about the end of stimulus in the United States, the German elections not to men− tion the very tense situation in Syria, which could have dire consequences and funda− mentally weaken overall confidence.

18

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Budapest Business Journal | Sept 06 โ Sept 19

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TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

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Balรกzs Ablonczy Gyรถrgy Simon Gergely Karkiss

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Lajos Beck (50), Istvรกn Kucsera (50) โ

Lajos Beck, Istvรกn Kucsera Zoltรกn Horvรกth Lajos Beck

1134 Budapest, Kassรกk Lajos utca 19โ 25.

(1) 555-7270 (1) 555-7271 info@isys-on.hu

IFS HUNGARY KFT 10

800 400

800 400

IFS Applications ERP

Budapest Airport Zrt, Szentkirรกlyi ร VYiQ\Yt] .IW +$-'8 &VRSRUW ร llami Nyomda Nyrt, INNOCOMP ,SDUL pV .HUHVNHGHOPL .IW Medicontur Orvostechnikai Kft

30

โ ,)6 :25/' $% ,)6 CEE (100)

Zsolt Weiszbart โ Gรกbor Halรกsz

1132 Budapest, Vรกci รบt 22โ 24.

(1) 236-3700 (1) 236-3701 infohu@ifsworld.com

MULTISOFT KFT 11 www.multisoft.hu

761 505

278 184

0LFURVRIW '\QDPLFV 1$9 &50 MobileNAV, Incadea

PR Audit Controll Kft, MTKI Kft, Audatex-Mo. Kft, Metem Europe Kft, Elszรถv-Automatika Kft, Univer Penta .IW e0, 1RQSURร W .IW

57

Gรกbor Kelemen (100) โ

Gรกbor Kelemen Tamรกs Kelemen 'yUD %HUWDODQ

1112 Budapest, .ล pUEHUNL ~W (1) 310-1492 (1) 310-1497 sales@multisoft.hu

LLP HUNGARY SZร Mร Tร STECHNIKAI ร S KERESKEDELMI KFT

754 259

754 259

SunSystems, iPOS, Microsoft NAV, AX

GlaxoSmithKline Kft, HBO Holding Zrt, KPMG Central&Eastern Europe, MOL Energiakereskedo Zrt, Roth Heizole Ges.m.b.H, Tifon doo

13

โ LLP Prague s.r.o.

(100)

Jiri Stiller Alinka Vรกrhegyi ร gnes Csizmadia

1138 Budapest, 5pYpV] XWFD ยฒ (1) 412-2400 (1) 412-2401 contact@hu.llpgroup.com

17,100

1

2

3

ยป

ORACLE HUNGARY KFT[1] www.oracle.hu

HUMANSOFT ELEKTRONIKAI KFT www.humansoft.hu

4

S&T CONSULTING HUNGARY KFT www.snt.hu

5

XAPT HUNGARY KFT

6

GRIFFSOFT INFORMATIKAI ZRT

www.xapt.hu

www.griffsoft.hu

7

R&R SOFTWARE ZRT

8

LIBRA SOFTWARE ZRT

www.rrsoftware.hu

www.mve.hu

15,714

ยป

ISYS-ON INFORMATIKAI TANร CSADร KFT www.isys-on.hu 9

www.ifsworld.com

12

www.llpgroup.hu

0DJ\DU 7HOHNRP pV D 7 FVRSRUW WDJMDL 'HORLWWH 92&+ 9RGDIRQH K&H Bank Zrt, Euronet Services Kft, NISZ

Zsolt Ambrus

ยป ยป

1118 Budapest, 5pWN|] XWFD (1) 889-2900 (1) 889-2957 info@xapt.com

WWW.BBJ.HU

COMPANY WEBSITE

REVOLUTION SOFTWARE 13 KERESKEDELMI KFT www.revolution.hu

LLP DYNAMICS 14 HUNGARY KFT

NET REVENUE FROM ERP SOFTWARE SALES (HUF MLN) IN 2012 IN H1, 2013

SOFTWARE TYPES DISTRIBUTED IN 2012

Âť Âť

Iroda++ ßgyviteli rendszer, Revol Express ßgyviteli rendszer, MS Dynamics NAV, MS Dynamics CRM, 3UHDFWRU WHUPHOpV WHUYH]pV 0 ÀOHV dokumentumkezelÊs Ês WF, Andoc powered by Kameleon dokumnetumkezelÊs Ês WF, Revol SXL ruhåzati rendszer

501 –

215 78

212 78

MULTI INFORMATIKAI KFT 15

198 93

E-BEST CONSULTING KFT 16

www.llpdynamics.hu

www.multi.hu

www.ebest.hu

BMS INFORMATIKAI KFT 18 www.bmsinformatika.hu

Âť

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

Âť

Individuals (100) –

Zsolt JuhĂĄsz, LĂĄszlĂł SzalĂłki Krisztina BĂłdog Erika KalmĂĄr-Nagy

1133 Budapest, VĂĄci Ăşt 76.

(1) 461-8030 (1) 352-1553 revol@revolution.hu

6

– Dynamics Holdings s.r.o (100)

Alinka Vårhegyi – Andrea Róna-Bíró

1138 Budapest, RÊvÊsz utca 27–29.

(1) 412-2400 (1) 412-2401 hucontact@ llpdynamics.com

7

GyÜrgy Marosi (50), GyÜrgynÊ Marosi (50) –

GyÜrgy Marosi – –

1196 Budapest, )Ĺƒ XWFD (1) 348-0576 (1) 348-0575 info@multi.hu

Attila Neumer – Imre Kereki

1149 Budapest, Nagy Lajos kirĂĄly Ăştja 117.

(1) 460-9520 (1) 460-9519 ebest@ebest.hu

Microsoft Dynamics NAV, Microsoft Dynamics AX

Halton, TATA Steel, MET, Royal Canin Hungary, E-STAR

59 32

Visual ApollĂł szoftvercsalĂĄd

Fotex Nyrt, MSCI, &XVKPDQ :DNHĂ€HOG .IW XIII. KerĂźleti KĂśzszolgĂĄltatĂł Zrt, TOYOTA SAKURA Kft

150 68

150 68

Oracle JD Edwards EnterpriseOne, Oracle Business Intelligence, Oracle Content Management

Mecsek FĂźszĂŠrt Zrt, Fornetti Kft

11

– –

100 42

100 41

SZĂ MADĂ“ vĂĄllalatirĂĄnyĂ­tĂĄsi rendszerek, CompAkta kisvĂĄllalkozĂłi csomagok

Szamos MarcipĂĄn, TTL Ă ruhĂĄzak, UNIX AutĂłalkatrĂŠsz, Chemark Kft

13

ENACO Kft (95), TAX EBR (5) –

GyÜrgy Kornis – GyÜrgy Kornis

1091 Budapest, hOOĹƒL ~W (1) 215-0256 (1) 215-9840 mail@szamado.hu

10

Kolosi ĂŠs TĂĄrsa %HIHNWHWĹƒ .IW

Magic (Onyx) Magyarorszåg Szoftverhåz Kft (19.89), B&IT 2000 Consulting Kft (13.33) –

IstvånnÊ Schwarczenberger – –

1086 Budapest, Dankó utca 4–8.

(1) 476-3150 (1) 476-3155 bms@bmsinformatika.hu

SZĂ MADĂ“ SZOFTVER 17 SZOLGĂ LTATĂ“ KFT www.szamado.hu www.compakta.hu

MAIN CLIENTS IN 2012

NO. OF FULL-TIME EMPLOYEES ON JUNE 1, 2013

RANK

TOTAL NET REVENUE (HUF MLN) IN 2012 IN H1, 2013

19

3

Budapest Business Journal | Sept 06 – Sept 19

73 30

70 30

BMS, Biblion

LĂ­ra KĂśnyv Zrt, Pentaton Kft, 0DJYHWĹƒ .LDGy .IW &RUYLQD .LDGy Kft, Atheneaum Kft, RĂłzsavĂślgyi Kft

NOTES: (1) Data of business year June 1, 2011 - May 31, 2012

Âť = would not disclose, NR = not ranked, NA = not applicable

ADVERTISEMENT

This list was compiled from responses to questionnaires received by September 2, 2013 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time.

While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madåch Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

20

WWW.BBJ.HU

3

Budapest Business Journal | Sept 06 – Sept 19

A DIGITAL RETREAT The digital realm is something many like to hate but can’t help being addicted to. The number of users wanting to bid the binary playgrounds farewell is growing, but they will find that they are more integrated into the Internet than they might expect, and it might be a better option just to deal with the flipside of existing in this day and age.

GERGŐ RÁCZ

If you’re now fed up with what was once the thrill of logging in to your Facebook account, to seeing the response to your comments on a discussion board, or going through the emails containing items you may like to buy based on earlier E−bay pur− chases, you’re not alone.

Times are changing in the world of social media, and there is a good chance that now Facebook’s online community has passed the one billion mark, the numbers are set to deteriorate. According to the Social− Bakers monitoring firm, in the UK alone, some 600,000 people opted out at the end

STORY HIGHLIGHTS ■

A rising number of users are abandoning social media ■ Any form of online activity requires more circumspection from users to avoid theft

of 2012. A small−sample poll from Cornell University found that one−third of Face− book users suspend their activity at some point and 10% never come back.

It seems the main social hub, now val− ued at more than $100 billion, is not as much fun as it once was, and is even actu− ally the source of emotional distress.

Researchers at the Humboldt University in Berlin found the site as a generator of envy, when users don’t get as many ‘likes’ for their interests or if they are confronted with the assumed happy lives their friends portray in their shared photos.

The Cornell probe found other reasons, such as employers requiring workers to remove themselves, seeing the immense amount of time people spend on the site and other social media platforms and the related drop in productivity.

CLOSING UP Perhaps more importantly, users are start− ing to see the flipside of having hardly any privacy once they become actively involved

NOTE: ALL ARTICLES MARKED E XPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RE SPONSIBILIT Y

EXPERT OPINION

HOW DOES TERMINOLOGY INTEROPERABILITY FARE IN REAL LIFE? MIKLÓS BÁN ceo espell translation and localization

With all the terminology talk in the language industry on best practices, database creation and concepts, there is one issue not explored in depth. The subject of terminology interoperability is not hitting the charts; still, it is a key issue for integrated, flexible solutions.

A

ll the translation software on the market that is worth mentioning supports LISA-standard file formats to exchange data. In practice, strict conformity to the specifications are usually not enforced at all, or only partially implemented; what is more, certain tools prefer proprietary formats, triumphantly preventing effortless and straightforward information exchange. The business rationale behind the latter approach is understandable, albeit not commendable, and artificial barriers happily can usually be circumvented. As for LISA standards, divergence can be seen even in cases of commonly supported features. Because of the diversity and inconsistency of implementations, built-in support for the formats of other tools has been a bit more than a checkbox feature only in most cases.

A usable terminology management solution provides a bridge between partner validators,

terminologists, language engineers, translators and project managers, supporting finegrained permission management, custom data structures and collaboration options. As opposed to using a wide range of tools internally, relying on a robust and modular translation ecosystem has overbearing benefits for every party involved, and in many cases warrants conversion between other formats and localization software.

Typically, conversion problems originate in two sources: either the initial collection is not a structured set, or the database definitions differ between the tools. While doctoring a structured output is not a complex task if the differences are documented, foraying into the reconstruction of a pile of unrelated data can be a challenging IT endeavor.

As one of our philosophically inclined colleagues put it, every question of importance in life can be solved with regexes, and those that cannot, are not worth solving. Unfortunately for him, termbase structuring is a problem defying this otherwise universally applicable rule.

If this article managed to spark your interest in the subject, visit labsblog.espell.com to read about interoperability and lifecycle management this week.

www.espell.com

in the system, a privilege they were more than happy to give up not too long ago.

The digital world is abuzz with distaste towards the extensive online monitoring campaign recently uncovered in the United States, perhaps only now realizing that it doesn’t take an NSA badge to find out little short of everything worth knowing about anyone with an online presence.

Increasingly, Facebook users experi− ence that their “likes” and “shares” are accumulated into advertising databases that litter their walls with targeted ads.

A Foursquare account means constantly showing a person’s location.

Having lived with social media for a while now, users may have been burned themselves, or simply heard the stories of how everyday actions in the digital public can backfire; stories like users getting bur− gled after publicly announcing when they were going on vacation, or employees get− ting heat at work, or worse yet, from a pro− spective employer, after being tagged in a photo taken during a night of drinking. The latter is among the first pitfalls that any job seeking ‘how−to’ invariably lists.

There are now sites like accountkiller. com and justdelete.me that exist for the sole purpose of helping users remove them−

WWW.BBJ.HU

21

3

Budapest Business Journal | Sept 06 – Sept 19

AN AVERAGE USER WOULD HAVE TO SPEND 76 WORK DAYS A YEAR IF THEY WERE TO READ THE PRIVACY POLICIES OF EVERY WEBSITE THEY VISITED The problem with this is that if any of those sites are hacked, you’re sensitive information is in danger. Maybe you don’t mind if someone gains access to your pro− file on your favorite cooking site, but if you use the same password and address for a cloud−based email service, there’s a good chance someone may access sensi− tive information. This is a common way of defrauding users.

FROM THE SUN TO PLUTO: TURN YOUR BIG DATA INTO YOUR BIG OPPORTUNITY

B

selves from the picture, whether its social media or the termination of their Dropbox account. The simple existence of these sites shows that there is indeed a demand to take a step back, but just browsing through the immense number of sites where users could and often do have an account also shows how big a transition withdrawing can be.

Commonly, users give up their rights out of what is technically negligence, but realistically speaking, a necessity. The box under those terms of agreement that you have to tick in whenever you install an application, sign up to a forum or join a social media site with a privacy policy

UNIVERSAL PASSWORD Another privacy risk that users should con− sider is the various accounts they have cre− ated, whether it was for online shopping, social media or the comments section of their favorite band’s website. As human habits go, not only is it common to use sim− ple passwords, but to use them repeatedly.

SplashData publishes an annual list of the most common passwords used and found in 2012 that “password,” “123456”, and 12345678,” were the most popular.

The list was compiled from files contain− ing millions of stolen logins posted online by hackers to highlight the risk of using weak passwords.

Compounding the risks, not only is it

ing the value of making key decisions as quickly as possible, and the need for a data platform that is capable of real-time performance, coupled with the ability to handle mobile users and, of course, all this big data.

The latest technology, such as in-memory, can do that, providing up to 10,000 times faster process than before. Using an in-memory platform not only speeds up processes, but also enables whole new scenarios. Through this, enterprises can completely rethink how they do business by analyzing and transacting in real-time. The characteristics of in-memory means you need less hardware, so you can shrink the IT costs through simplification, while at the same time increase the IT service level. This is what SAP HANA delivers to the marketplace.

that would stretch from the Sun to Pluto 18,000 times. The data is also becoming more complex, and as that level rises, so do the costs, and the risk as well. And business requirements are also increasing in parallel.

At SAP we have proven the power of HANA not only to ourselves, but to our customers as well.

And there are already Hungarian companies who want to stay ahead of the game by using this new technology.

But where does this ever-increasing volume of data come from? It may come from multiple sources: such as the older systems, so-called transactions data, from analytics, from planning, prediction, social media, and so on. But do the users pay attention to the details? Of course not.

They only want the data, processed in next to no time, and useable on any applications in order to get the work done.

According to the latest research, Oxford Economics found that Hungarian companies see their future in expanding services and solutions geographically. That also calls for realtime operations, and converting big data into a big opportunity.

As a business leader, it is your responsibility to turn big data into an opportunity, to make your business run in real-time, and be more adaptable. What is real-time? That is happening on the fly. Businesses in all sectors are discover-

www.sap.com/

NOTE: ALL ARTICLES MARKED E XPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILIT Y

more often than not contains passages common to go with a weak option, there that require newcomers to give up what is a good chance that users use the same would seem to be basic rights. sequence for more or possibly all sites Some applications are designed to where they have an account. In all fair− trick users and formulate the key ques− ness, this approach is reasonable pro− tion along the lines of “are you not certain vided how many sites require some form that you definitely wouldn’t approve the of registration and it would be, if not terms if you declined,” and then go ahead impossible, then definitely tricky, to keep and install a sparkly toolbar regardless of track of every single password if they what you pick, usually along with a plen− were all different. tiful serving of spyware.

Reputable companies aim for a more straight−shooting approach, but they too EXPERT OPINION can be confident that whatever they put into the terms of use, hardly a single liv− ing soul will read it, only to be faced with the consequences later. In the States, the likes of Sony, AT&T and Netflix have already been taken to court over revisions to their terms. Last year, online media distributor Netflix included a passage in its revised terms of services under which SZABOLCS PINTÉR acceptance means users waive their right Head of Database & to seek legal reparations.

Technology Division This kind of complacency on users’ behalf SAP Hungary is hardly surprising, since it would actually be nigh−on impossible to read all of the terms. A few years ago, Carnegie Mellon ig data is a phenomenon that comparesearchers drew up a model that found an nies, including small- and medium-sized average user would have to spend 76 work enterprises, are facing today regardless days a year if they were to read the privacy of the current economic condition or national policies of every website they visited. Con− borders. If you ever wondered why takes it so sidering the tumult of updates that come long to get corporate data to your laptop, or to your mobile, you’ll know what I’m talking about. with applications like iTunes or staple plug− ins like Flash Player that require users to Today we are living in the middle of a data exploaccept the terms each time, reading every− sion. By 2015 we’ll be generating 7.9 zettabytes of data every year. If each byte were a dollar bill, thing is indeed an impossibility.

22

WWW.BBJ.HU

3

Budapest Business Journal | Sept 06 – Sept 19

ECONOMY NEEDS IT PROFESSIONALS Even if the economic environment is not in favor of growth, Hungarian software development companies are keeping afloat as more enterprises realize that IT−solutions could help to improve efficiency and everyday operations.

KRISZTIÁN KUMMER

Even if the majority of Hungarian enter− prises feel that the economic outlook is deteriorating, software development com− panies seem to have found ways to survive.

“The number of new orders and the turn− over is on same level as in recent years.

The domestic situation is not in favor of economic growth, but our premium clien− tele could develop and invest in the midst

STORY HIGHLIGHTS ■

Hungarian IT-sector stands the challenges of the ongoing crisis ■ Graduated students in IT learn the profession at their first job, not in school

of market challenges, and orders from these companies can offset the negative effects of the market,” said Zsolt Weiszbart, manag− ing director of IFS Hungary. Balázs Ablon− czy, managing director of SAP Hungary has also reported positive numbers. “Domestic revenue has increased in line with the par− ent company’s results and reached HUF 17 billion last year. Modern IT tools help the implementation of corporate strategy, improvement of operational efficiency and more companies are deciding to implement these solutions,” he pointed out.

On the downside, however, the construc− tion market has collapsed in the last few years like a deflating balloon, and its spill− over effects have reached the IT sector as

NOTE: ALL ARTICLES MARKED CASE STUDIES ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILIT Y

CASE STUDY

VILLAGE GOING SMART WITH MOBILE NET How does going online change the life of a rural community? How will learning, teaching and recreation change if a tiny village gets access to the net? This is what a pilot project in Csongrád County’s Maroslele is aiming to find out.

T

he ‘Vodafone Smart Village 2013’ program run by the eponymous telecom firm and the Délvilág/Délmagyarország local publishing group was officially launched on August 30 with the goal of bringing digital technologies to the countryside and teaching the people living there – children and grownups alike – their uses and benefits.

townships and opening up new horizons. He also stressed the importance of the education that must go hand in hand with distributing the gadgets themselves.

Vodafone prides itself on the fact that it has the widest mobile internet coverage in Hungary, providing service to 97.4% of the country. This translates to 2,432 townships and 1.2 million people who may enjoy the benefits of high-speed wireless internet.

Maroslele mayor György Martonosi welcomed the effort and hoped that it could play a major role in developing the village and also help residents get along better thanks to the new skills they will learn.

The village hosting the effort is Maroslele, where locals received 30 tablet computers for the start of the school year. The ‘My Maroslele –from the chalkboard to the tablet’ education campaign will feature several courses and challenges to help establish familiarity with the technology and all that it allows access to.

Délvilág editor in chief Gábor R. Tóth stressed that the campaign will spread highly important knowledge about new technologies but will also teach the future internet citizens of Maroslele how to avoid pitfalls, like using caution when logging on to social media.

Vodafone deputy chief executive Pál Marchhart said the primary goal of the effort is to prove that mobile internet can have a genuine impact on improving living conditions in small

Success at Maroslele could open up new dimensions, as Vodafone says it is more than prepared to take the program to other locations if the overall results are positive.

well. “Our business serves as ‘the intellec− tual center for the construction business’.

But even if our company is the biggest among those who carry out such solutions in the country, the impact of the recession hit our results hard. The company’s turn− over has fallen by one−third in the last three years, meaning a significant decline in the number of orders as well,” said Miklós Kon− rád Molnár, managing director of Terc.

CLOUDS, CLOUDS Of course, it’s 2013, so everything is about online solutions, mobility and clouds just as in recent years, regard− less of market or business size. “Besides offline software sales, we refocused much effort on online solutions, develop− ing and marketing software that can be used directly via Internet,” Molnár said.

“Changes in consumer demand forced us to move in this direction to ensure the preservation of our software developer business in the long run.”

IFS also feels that mobile applications are crucial on the market. “Easy opera− bility and mobility is increasingly impor− tant to our customers. IT solutions must not just be able to support the company’s business processes efficiently, but must have a user friendly interface and mobile device support as well,” Weiszbart said.

ASPIRING YOUTH Hungarian policy−makers like to empha− size the high quality of Hungarian tech− nical and IT−education. Our respondents rated the overall quality of the Hungar− ian higher education as good, but high− lighted some concerns as well. “The supply of personnel with an academic background is adequate, in fact there is an over−education. But they must acquire professional practical knowl− edge on their first job during the first few years of working. And at which com− pany a young IT professional starts his career determines to a large extent his future carrier,” Weiszbart warned. From another point of view, more workers would be welcome in the sector. “Hun− garian IT experts can easily stand the competition at an international level as well, it’s just a matter of the quality of the education, opportunities within the company and personal creativity.

I think more IT experts are needed on the domestic market, as an engine that ensures development. According to sur− veys, every forint spent on the IT sector serves as two in other industries. More− over, EU surveys show that hundreds of thousands of ICT professionals will be missing from the continent’s labor mar− ket by 2015,” he added.

WWW.BBJ.HU

3

Budapest Business Journal | Sept 06 – Sept 19

23

Software developers

BALABIT IT KFT

3

EVOLINE KFT

4

R&R SOFTWARE ZRT

5

NEXON KFT

6

MULTISOFT KFT

7

ITWARE KFT

8

9

www.balabit.hu

www.evoline.hu

www.rrsoftware.hu

www.nexon.hu

www.multisoft.hu

www.itware.hu

IFS HUNGARY KFT www.ifsworld.com

GREPTON INFORMATIKAI ZRT

2,620

2,580

1,520

1,567 664

1,500

3,100 1,700

657

761 505

490

514 223.50

400

319

323

www.terc.hu, www.terc.eu

11

NR

GEOMETRIA KFT www.geometria.hu

ALERANT ZRT www.alerant.hu

GRAPHISOFT SE ZRT NR www.graphisoft.hu

Âť

2,580 895

www.grepton.hu

TERC KERESKEDELMI 10 ÉS SZOLGà LTATÓ KFT

2,620

Âť

Âť

Âť

800 400

699 336

529 323

671

Âť

1,787

Âť

7,209

Âť

Germany

–

Siemens

syslog-ng Premium Edition, syslog-ng Store Box, Shell Control Box, Zorp Gateway

Coop, Airfrance, Telenor Norge, Handelsbanken, Dubai Islamic Bank, Raiffeisen, Facebook, Svenska National 'HSW 2IĂ€FH &(= MTS Ukraine

82

DACH, USA, France, Russia

15

Germany, Switzerland, Austria

NetFlyR

evosoft Kft, T-Systems Zrt, Bonafarm Kft, BP, Telenor

2.1

Romania, Croatia, Great Britain, Austria, USA

FusionR ERP, FusionR BSS, FusionR Utility, FusionR SFA, VERK/400, cDMS

6]pSKĹƒ *\ĹƒU 6]RO HEINEKEN, GIRO

Âť

Âť

–

Âť

–

–

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

Âť

642 566

– evosoft GmbH (100)

PĂŠter VĂĄrady Marc Hiepler ZoltĂĄn GĂśnye

1117 Budapest, Kaposvår utca 14–18.

(1) 381-6100 (1) 381-6101 sales@evosoft.com

120 50

Lajos Varga (24.52), AndrĂĄs IllĂŠs (24.47), BalĂĄzs Scheidler (19.87), ZoltĂĄn *\|UNĹƒ

à rpåd Magosånyi (7.24), Endre Wagner (6.71) –

=ROWiQ *\|UNĹƒ Attila RĂĄcz Attila Kiss

1117 Budapest, AlĂ­z utca 2.

(1) 398-6700 (1) 208-0875 info@balabit.hu

118 78

KĂĄroly LĂĄszlĂł (5) CSM Holding Kft (10) linepro Unternehmensbeteiligungs GmbH (85)

Zsolt Viråg – Mihåly Juhåsz

1116 Budapest, Hauszmann Alajos utca 2.

(1) 371 2440 (1) 371 2441 horvath.rita@evoline.hu

69 45

Individuals (100) –

Csaba Rozenberszki Ilona RĂŠtai RĂłnyainĂŠ Zsolt Rozenberszki

1038 Budapest, RĂĄby MĂĄtyĂĄs utca 7.

(1) 436-7850 (1) 436-7851 info@rrsoftware.hu

239

Âť

(100) –

– – –

1138 Budapest, VĂĄci Ăşt 186.

(1) 465-5100 (1) 465-5101 nexon@nexon.hu

Gåbor Kelemen (100) –

GĂĄbor Kelemen TamĂĄs Kelemen DĂłra Bertalan

1112 Budapest, .ĹƒpUEHUNL ~W (1) 310-1492 (1) 310-1497 sales@multisoft.hu

Âť

NEXONhrm

50

Austria

H'L7 GLNWiOiVL ZRUNĂ RZ

+LUGHWpVNH]HOĹƒ 7UDIĂ€SD[MHO]Ĺƒ 0RELOH1$9 (mobil ERP), CĂŠges ebĂŠd pWHOUHQGHOĹƒ DONDOPD]iV

Âť

–

57 23

1

Japan

MOTIware, FLEETware, AGENTware, EVENTware, Kojimori, APPaware, SMSware

Magyar Telekom, T-Mobile, Vodafone

–

18 10

– –

Såndor Dankó – –

1117 Budapest, Budafoki Ăşt 209.

(1) 463-0620 (1) 463-0621 sales@itware.hu

IFS Applications

Budapest Airport Zrt, SzentkirĂĄlyi Ă svĂĄnyvĂ­z Kft, HAJDU Csoport, Ă llami Nyomda Nyrt, INNOCOMP Ipari ĂŠs Kereskedelmi Kft, Medicontur Orvostechnikai Kft

30 6

– IFS WORLD AB, IFS CEE (100)

Zsolt Weiszbart – Gåbor Halåsz

1132 Budapest, Våci út 22–24.

(1) 236-3700 (1) 236-3701 infohu@ifsworld.com

–

Telenor MagyarorszĂĄg Zrt, Vodafone MagyarorszĂĄg Zrt, Magyar Telekom Nyrt, OrszĂĄgos Orvosi RehabilitĂĄciĂłs IntĂŠzet, Aegon MagyarorszĂĄg Ă lt. BiztosĂ­tĂł Zrt, CIB Bank Zrt

32 13

AndrĂĄs SĂźli (22.14), Protomix IngatlanforgalmazĂł Zrt (35.10), Index Immo IngatlanforgalmazĂł Kft (7.96), IstvĂĄn NovĂĄk (5.51), Technology Support Kft (5.72) Ivanka Mader s.r. o (23.57)

Andrås Sßli Andrås Sßli –

1116 Budapest, Kondorfa utca 10.

(1) 204-7730 (1) 204-7731 mail@grepton.hu

33 3

Konråd Miklós Molnår (80), Miklós Molnår (10), Magdolna Demeter (10) –

KonrĂĄd MiklĂłs MolnĂĄr Judit HorvĂĄth Magdolna Demeter

1149 Budapest, PillangĂł park 9.

(1) 222-2402, (1) 222-2403, (1) 222-2404 (1) 222-2405 terc@terc.hu

Tibor Tenke Katalin Szacsvay –

1037 Budapest, Medve utca 17.

(1) 240-7014 (1) 240-7019 info@geometria.hu

–

–

–

–

Âť

Âť

RESALE

MAIN CLIENTS IN 2012

CONSULTING

SOFTWARE PRODUCTS

NO. OF FULL-TIME EMPLOYEES ON JUNE 1, 2013 OF THESE, FULL-TIME SOFTWARE DEVELOPERS

2

96

MAIN EXPORT DESTINATIONS

DISTRIBUTION OF OWN PRODUCTS

www.evosoft.hu

SOFTWARE RELATED ACTIVITES

INSTALLATION

13,068

13,631 6,691

SOFTWARE EXPORT IN 2012 AS A PRECENTAGE OF TOTAL REVENUE (%)

1

EVOSOFT HUNGARY KFT

TOTAL NET REVENUE (HUF MLN) IN 2012 IN H1, 2013

COMPANY WEBSITE

NET REVENUE FROM SOFTWARE DEVELOPMENT (HUF MLN) IN 2012

RANK

Ranked by net revenue from software development in 2012

–

–

–

Âť

Âť

Âť

Ministries, municipalities, government RIĂ€FHV LQYHVWRUV GHsigners, contractors, construction contractors, entrepreneurs, construction engineering inspectors, technical managers, experts

Âť

Âť

'06 206 0RELO 6]HUHOĹƒ Mirtusz

Âť

Âť

Âť

Âť

Âť

Âť

– –

Âť

Âť

Magyar Telekom Nyrt, Erste Bank Hungary Zrt, MVM PArtner Zrt, Magyar Posta Zrt, MOL Nyrt, Vodafone MagyarorszĂĄg Zrt, Telenor MagyarorszĂĄg Zrt

–

22 20

AMCS Kft (100) –

Tamås Szabó – –

1117 Budapest, Infopark sĂŠtĂĄny 1.

(1) 205-0055 (1) 205-0056 info@alerant.hu

Âť

Archicad 17, BIMx, BIM Szerver

232

– Nemetschek AG (100)

Viktor Vårkonyi Attila Seres –

1031 Budapest, ZĂĄhony utca 7.

(1) 437-3000 (1) 437-3099 mail@graphisoft.hu

Âť

Âť

Âť

–

–

46

Âť

www.kulcs-soft.hu

NR

LIBRA SOFTWARE ZRT www.mve.hu

MICROSOFT HUNGARY NR KFT www.microsoft.hu

NR

MONTANA KNOWLEDGE MANAGEMENT KFT

Âť

Âť

Âť

Âť

Âť

947

Âť

Algo, DB2, Cognos, FileNet, ILOG, infoSphere, Lotus, Maximo, Rational, SPSS, Tivoli, WebSphere

Âť

Âť

–

Âť

Âť

Âť

Âť

QUALYSOFT ZRT www.qualysoft.hu

REVOLUTION SOFTWARE NR KERESKEDELMI KFT

Âť

Âť

Âť

Âť

Âť

Âť

Âť

Âť

Kulcs billing, payroll, accounting software

872 –

Âť

Âť

Libra3S, Libra6i, InfoCenter, Corso, Libra Virtual

Âť

Windows, Internet ([SORUHU ;ER[ 2IĂ€FH Media Player, Skype, Windows Phone

Âť

Âť

MonDoc, MonFlow, InfovadĂĄsz, NaprakĂŠsz, MonSpeech, DigiSec

Âť

Âť

Âť

Âť

,QĂ€QLFD 'RFXPHQW Solutions, Impulse Driver, ,QĂ€QLFD &RQWHQW &UXLVHU Nebula Intranet SAAS

Âť

Âť

Âť

Âť

Âť

9,701

Âť

1,298 532

Âť

www.montana.hu

NR

DISTRIBUTION OF OWN PRODUCTS

MAIN CLIENTS IN 2012

RESALE

SOFTWARE PRODUCTS

2,352

Âť

Âť

Âť

Âť

Iroda++ management system, Revol Express management system, SXL clothing system

17.1 –

Âť

Germany, USA

SAP softwares

Âť

Siemens developed softwares

501

www.revolution.hu

Âť

Âť

Âť

Âť

NO. OF FULL-TIME EMPLOYEES ON JUNE 1, 2013 OF THESE, FULL-TIME SOFTWARE DEVELOPERS

KULCS-SOFT NYRT NR

Âť

MAIN EXPORT DESTINATIONS

CONSULTING

www.ibm.com/hu

14,579

SOFTWARE RELATED ACTIVITES

INSTALLATION

IBM HUNGARY KFT

SOFTWARE EXPORT IN 2012 AS A PRECENTAGE OF TOTAL REVENUE (%)

NR

TOTAL NET REVENUE (HUF MLN) IN 2012 IN H1, 2013

COMPANY WEBSITE

NET REVENUE FROM SOFTWARE DEVELOPMENT (HUF MLN) IN 2012

Budapest Business Journal | Sept 06 – Sept 19

RANK

24

WWW.BBJ.HU

3

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

Âť Âť

– IBM Ireland Product Distribution Limited (99.93), IBM World Trace Corp (0.07)

Ferenc Pongråcz – –

1117 Budapest, Neumann JĂĄnos utca 1.

(1) 382-5500 (1) 382-5501 info@hu.ibm.com

Tibor Kulcsår (96.30) –

Tibor Kulcsår – –

1022 Budapest, TĂśrĂśkvĂŠsz Ăşt 30/A (1) 336-5300 (1) 336-5309 info@kulcs-soft.hu

Volån Elektronika Zrt (99)Carolinainvest Kft (1) –

Kålmån Faur – Orsolya Juhåsz

1113 Budapest, Karolina Ăşt 65.

(1) 372-3333 (1) 209-1477 info@mve.hu

– Microsoft Corp. (100)

Istvån Papp – –

1031 Budapest, Graphisoft park 3.

(1) 267-4636 – msinfo@microsoft.hu

– Yes Investment SA (100)

Pål Vadåsz Csaba Orosz –

1118 Budapest, RĂŠtkĂśz utca 5.

(1) 327-9800 (1) 327-9801 info@montana.hu

Âť

Tamås Simon (1.50) Róbert Mayer (1.50) –

Attila Simon TamĂĄs ZimĂĄnyi Katharina Bajbakow

1118 Budapest, RĂŠtkĂśz utca 5.

(1) 889-9800 (1) 889-9810 RIĂ€FH#TXDO\VRIW KX

Âť Âť

Individuals (100) –

Zsolt JuhĂĄsz, LĂĄszlĂł SzalĂłki Krisztina BĂłdog Erika KalmĂĄrNagy

1133 Budapest, VĂĄci Ăşt 76.

(1) 461-8030 (1) 352-1553 revol@revolution.hu

510

– SAP AG (100)

BalĂĄzs Ablonczy GyĂśrgy Simon Gergely Karkiss

1031 Budapest, ZĂĄhony utca 7.

(1) 488-5400 (1) 457-8344 info.hungary@sap.com

– Siemens AG Austria (100)

à kos Szekendy – –

1143 Budapest, Gizella út 51–57 (1) 471-3000 (1) 471-3009 pse.hun@ siemens.com

Zoltån Jutasi Levente Sipos –

1047 Budapest, Baross utca 91–95.

(1) 399-5500 (1) 399-5599 info@synergon.hu

Magyar TakarÊkszÜvetkezeti Bank Zrt  ( ), Orszågos TakarÊkszÜvetkezeti IntÊzmÊnyvÊdelmi Alap  ( ) –

Barnabås Pål Endre Megyeri –

1125 Budapest, )RJDVNHUHNĹ? XWFD ² (1) 458-6600 (1) 458-6601 titkarsag@takinfo.hu

Videoton Holding Zrt (14), Unit4 Teta S.A (86) –

Tamås Wehring – –

1031 Budapest, ZĂĄhony utca 7.

(1) 436-0540 (1) 388-2178 vtsoft@vtsoft.hu

86

Âť

49 Ÿ

186

Âť

68

Âť

86

SAP HUNGARY LTD. www.sap.hu

Âť

NR

SIEMENS PSE KFT[1] NR www.pse.siemens.hu

Âť

3,299

Âť

Âť

Âť

Âť

Âť

Âť

200

Âť

Âť (56.66), Cashline

SYNERGON INFORMATION NR SYSTEMS NYRT

Âť

722

Âť

Âť

Âť

Âť

Âť

Âť

Âť

TakarĂŠkbank Zrt, GrĂĄnit Bank Zrt, Kiniszi Bank Zrt

Âť

Âť

251

Âť

www.synergon.hu

NR

TAKINFO KFT www.takinfo.hu

VT-SOFT SOFTWARE NR KFT www.vtsoft.hu

Âť

Âť

3,095

Âť

788

Âť

Âť

Âť

Âť

Âť

Unit4 products

Âť

Âť

Âť

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Âť

Âť

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103

Âť

61

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Investment Holding Zrt (8.36), Pannergy Nyrt and subsidiaries (11.56), Navigator Investment (7.06), Synergon Group (16.36) –

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BBJ

4 Socialite PEOPLE ON THE MOVE

BOOK REVIEW

Dr David Lewis: Impulse Upcoming events

30 29

AFTAB AHMED Citi Hungary / Country Officer for Hungary and cluster head for Hungary, the Balkan and Baltic regions

➜ Pages 26-27

MTI Fotó: Mohai Balázs

AMAZON ON THE HORIZON?

WWW.BBJ.HU

26

Budapest Business Journal | Sept 06 – Sept 19

AMAZON ON THE HORIZON? On July 25, the Hungarian Competition Authority (GVH) launched a prior authorization process concerning a possible merger of two major Hungarian booksellers, Libri and Shopline.

If the economic regulator finds the potential deal in compliance with the prohibition of excessive economic power, the nascent Libri−Shopline might even challenge the position of the market−leading bookstore chain Alexandra. However, no impact of the merger is likely to take effect before the great Christmas book fair, the Budapest Business Journal has learnt.

ANDRÁS ZSÁMBOKI

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“As soon as the competition watchdog set− tles the pre−endorsement process, our acquisition agreement will go into effect,” announced Ákos Balogh, the majority owner of Libri, late this spring. Collecting the rel− evant data for the prior authorization took Libri and Shopline two months, however.

Furthermore, four months are allowed by law for GVH to make a decision in such a case.

A long time, which can even be prolonged by another two months if required, let alone the time it requires to carry out the technical unification of the companies.

“Even if GVH approves the deal this autumn without reservations (which is not the most likely outcome at all), the manage− ment of the merged company will hardly be able to turn its strengthened position into a profit by the end of the year,” a market expert who wished to remain anonymous told the BBJ. Surely not before the Christmas fair, during which one−third of all annual book sales take place: bad news for the merging partners, good news for all the other book market players.

In the first step of the merger process, according to Balogh’s plan, Shopline will buy

LIBRI MANAGING DIRECTOR PÉTER KOVÁCS

SHOPLINE CEO ÁKOS STARCZ

WWW.BBJ.HU

27

Budapest Business Journal | Sept 06 – Sept 19

out Libri. The next step would involve SQ Holding, the present owner of Libri, acquir− ing a 67% stake in Shopline. Complicated as it looks, the only purpose of the two−step acquisition process is to keep – and possibly increase the value of – Shopline shares on the stock market. The final outcome is simple: Balogh, chief owner of SQ Holding, will pos− sess a controlling stake in the merged Shop− line−Libri company, while Zoltán Spéder, owner of CEMP Holding, will reduce his indirect majority ownership in Shopline to a mere 255 interest in the merged company.

The total outstanding shares of Shopline− Libri available to the public would amount to 5. (For further details of deal, including the price, see BOX) All these legal details are hypotheti− cal, until the competition authority has excluded any possibility of the merged company being in a monopolistic posi− tion. “The annual turnover of Libri is about HUF 8 billion, the revenue of Shop− line stemming from books is less than HUF 4 bln a year, while the annual out− put of the book retail market is about HUF 60 billion,” insisted Péter Kovács, managing director of Libri. “So Shopline− Libri would still be light years away from achieving market dominance.”

Book market experts, however, argue that the more sensitive point concerns the online book trade. In that submar− ket Shopline’s share alone might well exceed 50%, to which the turnover of Libri.hu would add at least another 8%.

“Their share in online book sales may well surpass 60%, which would give them a monopolistic advantage over all other ADVERTISEMENT

competitors,” a book market expert wish− ing to retain anonymity told the BBJ. The Hungarian book retail market has been in deep crisis since 2008. Nominal turnover in 2013 was 10% less than five years ago, to which inflation adds another 10% decrease. Whereas the decade between 1998 and 2008 had been char− acterized by rapid expansion and soar− ing sales, the last five years have brought about a steady decline, both in the num− ber of titles published and turnover.

The Hungarian book market in the past ten years has been dominated by fierce competition between the large book chains, among which Libri ranks second and Shopline fourth. Market leader Alexandra controls something like one−fifth of the market, so a possi−

ble merger between Libri and Shopline would hardly challenge its position. Líra, however, would fall behind its competi− tors, especially because it has suffered the most during the crisis.

There have been some recent rumors suggesting American book distributor Amazon plans to enter Hungary. The merger of Libri and Bookline could be interpreted as a kind of preventive attack, designed to defend the current position on the domestic market.

Further market concentration, however, is not so much about competition among retail bookstore chains. Most market actors think book retail giants wish to use their strengthened bargaining position against their business partners, achieving even more favorable conditions by shar−

ing selling costs and business risks than what they enjoy today.

“As both Libri and Shopline have cen− tral warehouses of their own, the merged company would possess two, which is totally superfluous,” Kovács told the BBJ. “We would keep the one whose landlord offers the more favorable conditions to us,” he added.

Libri has always been infamous among publishing houses for demanding very high commission fees deducted from fixed retail book prices. “Up to now they have asked for 54% commission from the retail price of each book of ours sold in their store, which is hardly bearable.

What will they demand if they merge with Shopline?” one owner of a small literary publishing house told the BBJ.

IT’S A BIG DEAL, ISN’T IT? “Price and payment details qualify as business secrets,” Péter Kovács told the BBJ. This confines the possibilities of any deal measurement, even though in July SQ Invest made a public purchase offer to CEMP for its 3.3 mln shares at a piecemeal price of HUF 575, which would mean a total price of HUF 1.9 bln. “The piecemeal price is just a little more than the legal minimum protecting small investors, which would be HUF 541. Via the merger, Shopline’s turnover would at least triple, so the official purchase offer is well below what could be expected,” a stock exchange expert close to the deal told the BBJ. The above estimate was confirmed by the CEO of Shopline, Ákos Starcz himself. “The future deal is sort of unique as its major beneficiaries are the small investors who would become the owners of a company triple the size from one day to another. It is just an instance of our decent business behavior, ” Starcz claimed. Market capitalization, however, does not reflect such expectations: stock prices have not changed much since SQ Invest’s purchase offer. By the end of the official purchase offer period, which ended on August 6, 23,316 shares had been sold to SQ Invest.

WWW.BBJ.HU

28

Budapest Business Journal | Sept 06 – Sept 19

WHO'S NEWS Citi has appointed Ahmed as Country Officer and CEO for Hungary and cluster head for Hungary and the Balkan and Baltic regions. He started his more thn 30-year career with Citi as an executive trainee, and has gained extensive U.S. and international experience in 10 countries. Ahmed holds an MBA from Tulane University in New Orleans. He is married with three children.

Name AFTAB AHMED

Current company/position CITI HUNGARY / COUNTRY OFFICER FOR HUNGARY & CLUSTER HEAD FOR HUNGARY, THE BALKAN & BALTIC REGIONS

Name ZOLTÁN LADÁNYI Current company/ position ROBERTSON HUNGARY / SENIOR VALUER

Ladányi has more than 10 years valuation experience in the fields of residential, commercial and industrial properties. He is a chartered real estate appraiser and chartered economist, and a member of the Royal Institution of Chartered Surveyors (RICS) as a Valuation Surveyor. He holds a BSc degree in Business Administration from Budapest Business School, and an MSc degree in Business Administration from the Corvinus University of Budapest.

Do you know someone on the move?

Supported by

Send information to research@bbj.hu

Name ÁGNES BEJÓ Current company/ position JALSOVSZKY LAW FIRM / SENIOR ASSOCIATE

Name MÓNIKA VÖRÖS Current company/ position UNILEVER / HR DIRECTOR

Bejó has joined Jalsovszky Law Firm as a senior associate. She will be responsible for coordinating the M&A/commercial law practice of the firm. She gained 12-years of experience at a Magic Circle law firm where she supervised several M&A transactions including the sale of KPN’s Hungarian subsidiaries and the joint venture established by EPN and Hungarocontrol. She regularly advises clients on commercial and labor law issues, and speaks fluent English and good German.

Since August 1, Vörös has been the HR director of Unilever, overseeing activities in Hungary, Slovenia, Croatia and Bosnia-Herzegovina.

She joined Unilever in 1997 and has held various sales positions such as key account manager, customer marketing and business development manager. She obtained her degree in trade from the College of Foreign Trade in 1994 and is currently completing her post-graduate HR studies at the Corvinus University of Budapest.

Name DÁNIEL RÁBAI Current company/ position CONTINENTAL GROUP / REPRESENTATIVE IN HUNGARY

Name MARIANN SZIRMAI

Rábai, GM of Continental Hungaria and President of the Hungarian Tire Association (HTA), has been appointed the representative of the Continental Group in Hungary.

One aim of the new position is to synchronize the common business interests, internal processes and external communication of Continental’s manufacturing and commercial enterprises in the country more effectively. Rábai will also represent the company at governmental discussions.

Szirmai succeeds Vörös in the position of head of international sales at Unilever. Szirmai started her professional career at Unilever in 1994; first as sales representative and then promoted to key account manager in 1999. She graduated from the faculty of trade, catering and tourism of the College of Economics in Budapest in 1994.

Current company/ position UNILEVER / HEAD OF INTERNATIONAL SALES

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29

Budapest Business Journal | Sept 06 – Sept 19

UPCOMING EVENTS

SEPT 07

SEPT 11

SEPT 14

SEPT 14-15

FAMILY DAY IN ASSOCIATION WITH FIRSTMED AND BRINGÓHINTÓ LOCATION Margitsziget, Bringóhintó premises

SEMINAR AND COCKTAIL: BALANCE SHEET STRUCTURE REPAIR TECHNIQUES WITH PURCHASING RECEIVABLES LOCATION InterContinental Budapest,

FIFTH AMCHAM ANNUAL SPORTS DAY AND SOCCER TOURNAMENT LOCATION GLOBALL Football Park & Sporthotel,

WORLD SERIES BY RENAULT RACING WEEKEND VIP CLUB LOCATION Hungaroring, Mogyoród ORGANIZER French-Hungarian Chamber of

Registration 10:30 AM TIME 11 AM ORGANIZER British Chamber of Commerce in Hungary FEE BCCH members: free of charge; non-members: HUF 3,000 + VAT for adults; HUF 2,000 + VAT for children aged 3-12; free of charge for children under 3 CONTACT www.bcch.com

1052 Budapest, Apáczai Csere J. u. 12-14.

REGISTRATION 4-4:30 PM TIME 4:30-7:30 PM ORGANIZER American Chamber of Commerce in Hungary FEE Members: free of charge; non-members: HUF 19,050/person CONTACT www.amcham.hu

2089 Telki, Szajkó utca 39.

TIME 8 AM-4:30 PM ORGANIZER American Chamber of Commerce in Hungary FEE AmCham members: HUF 4,500 + VAT/person; non-members: HUF 9,000 + VAT/person CONTACT www.amcham.hu

Industry and Commerce FEE For members and invitees: HUF 16,000 + VAT/day CONTACT www.ccifh.hu

SEPT 17

SEPT 17

SEPT 17

SEPT 19

AMCHAM MORNING SEMINAR: CROSS BORDER DEBT COLLECTION PROCEDURES LOCATION AmCham Conference Room,

SEASON OPENING COCKTAIL AND ‘WELCOME TO NEW MEMBERS’ LOCATION Mercure Budapest City Center,

SAVING OPPORTUNITIES FOR BUSINESS TRIPS LOCATION German-Hungarian Economy Hall,

1052 Budapest, Váci utca 20.

REGISTRATION 5:30 PM TIME 6-8 PM ORGANIZER French-Hungarian Chamber of Industry and Commerce FEE For members: HUF 6,900 + VAT; non-members: HUF 9,000 + VAT CONTACT www.ccifh.hu

1024 Budapest, Lövőház utca 30.

REGISTRATION 4:30 PM TIME 5-7:30 PM ORGANIZER German-Hungarian Chamber of Industry and Commerce FEE members, free of charge; non-members, HUF 10,000 + VAT/person CONTACT www.ahkungarn.hu

BUSINESS LUNCH WITH MIHÁLY PATAI, PRESIDENT OF THE BANKING ASSOCIATION LOCATION Kempinski Hotel Corvinus Budapest, Regina ball-

1051 Budapest, Szent István tér 11, 6th floor REGISTRATION 8:30 AM TIME 9-10:30 AM ORGANIZER American Chamber of Commerce in Hungary FEE The event is only open for members, for whom there is no participation fee.

CONTACT www.amcham.hu

room, 1051 Budapest, Erzsébet tér 7-8.

REGISTRATION Noon TIME 12:30-2 PM ORGANIZER British Chamber of Commerce in Hungary PARTICIPATION FEE BCCH members, HUF 13,000 + VAT; HABA members, HUF 15,500 + VAT; non-members, HUF 18,000 + VAT CONTACT www.bcch.com

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WOMEN AT THE “STEERING WHEEL” Why and how is a woman leader different in 2014 than earlier?

‘Women at the steering wheel’ is the FIRST conference to tackle issues such as women’s personal contribution to company management in 2014.

After our successful networking events this spring – the BBJ Shaker and the Going Global - Startup and Innovation in Hungary conference –, the Budapest Business Journal continues its series of events this October.

Why and how is a woman leader different in 2013/14 than earlier?

What does a woman leader do and what does she have to offer in 2014?

How does a leadership role affect a woman’s private life, personality and family?

Why does an organization work differently with a woman leader in 2014?

Based on experience, how do social roles and expectations affect performance today?

These and other exciting topics will be explored at our professional conference.

SPEAKERS Erika Kósa – CEO, Consequit Group Zsófia Körmendi-Seidler – product general manager, GE Andrea Laky – managing director, Ford Magyarország Katalin Ránky – businesswoman, founder of L’Oréal Magyarország Dr. Ágnes Jagicza – Chief HR and Organizational Development Officer András Simon – Consulting, Inspiro Invitation of further speakers is in progress.

Moderator: Piroska Bakos Date and time: Wednesday, October 2, 2013. 2 pm – 6 pm Venue: MKB Tiszti Kaszinó (1056 Budapest, Váci utca 38.)

Language: Hungarian Participation fee (includes entry for presentations and reception): HUF 12,500 + VAT 15% discount for BBJ subscribers

FOR MORE INFORMATION, UPDATES AND REGISTRATION: WWW.BBJ.HU. E-MAIL: EVENT@BBJ.HU PHONE: +(36) 1 398 0344

WWW.BBJ.HU

30

Budapest Business Journal | Sept 06 – Sept 19

BOOK REVIEW

ON THE SPUR OF THE MOMENT When we make a decision or form an opinion, we think we know why. But according to ‘Impulse’ – a groundbreaking new book from the director of the cutting− edge research agency Mindlab International – we’re wrong.

The truth is that most of our mental activity actually hap− pens below the level of conscious thought, and ‘Impulse’ explores this incredible phenomenon.

Delving into the mysteries of the ‘zombie brain’ that each of us pos− sesses, Dr David Lewis demon− strates how unconscious neuro− logical processes underpin every aspect of our lives, from whether or not we find someone attrac− tive to how we resist (or give in to) temptation. In the process he shows how finger length is a reliable predictor of risk−taking behavior, how seeing the logos ADVERTISEMENT

of fast food chains can make us more impatient, and how hold− ing a warm drink makes us find strangers more likeable.

Lewis divides our mental activ− ity into two systems: ‘System I’ (impulsive) and ‘System R’ (reflec− tive). System I thinking happens quickly and automatically, outside of our awareness, while System R thinking involves slower, more methodical, conscious reasoning.

It is System I thinking that is eas− ily fooled and manipulated.

‘Impulse’ addresses a range of behavior, including rioting and even suicide, but some of its most interesting observations and anecdotes come from the world of marketing. In a chapter titled ‘The Buying Impulse – The How and Why of What We Buy’, Lewis discusses a range of strate− gies that retailers and brand man− agers use to encourage us to buy on impulse, and highlights their skill at detecting and eliminat− ing barriers to buying. He also notes that, while many psycholo− gists have taken a negative view of impulse purchasing in the past, more recent studies suggest that,

for the most part, shoppers are unlikely to regret their spur−of− the−moment buying decisions.

‘Impulse’ Includes tests, accom− panied by analysis, to help us dis− cover how impulsive we are as individuals and what sort of risk− taking style we favor. Most impor− tantly, it reveals the practical applications of this emerging field of research, giving us insights into such diverse areas as child development, anti−social activi− ties, successful dieting, and buy− ing behavior. We may not be con− scious of our impulses, but it is clear that we can no longer afford to be ignorant of them.

IMPULSE

by Dr David Lewis Published by Random House Books ISBN 9781847946850 Available to order through www.hungaropress.hu

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31

Budapest Business Journal | Sept 06 – Sept 19

RESTAURANT REVIEW

CUBAN COCKTAILS AND ARGENTINIAN GRILL Do you remember the old restaurant inside the Fészek Klub in district seven? For decades it was one of the favorite meeting points of artists. The once−famous restaurant had gone downhill until the end of last year, when it was given a makeover and turned into a Cuban restaurant and bar.

La Bodeguita Del Medio is part of an international franchise chain that origi− nated in Havana, famous for its famous returning guests, like Ernest Heming− way and Pablo Neruda. Rumor has it that the legendary mojitos were first mixed here, and hundreds of tourists continue to make their pilgrimage to the high street of Havana, to taste the “original” of what could easily be the most popular cocktail of the world.

The restaurant in Budapest tries to live up to this grand past. The interior is fur− nished with heavy wooden pieces remind− ing us of the colonial style of old Havana.

The VIP room is decorated the way Hemingway’s study might have looked like back in the day. In summer the huge and beautiful garden hosts a Latin fiesta every night. After 9 PM there is a stage with live Cuban music, with spectacular salsa shows starting at 10 PM and enter− taining the guests until midnight.

The restaurant offers a wide variety of Latin American specialties. We felt like trying them all; this may well be the only place in Budapest to try authentic Cuban cuisine. So while we were hesitating over our meal choices, we ordered fried banana chips with creol salsa and fried yucca chips with guacamole dip and two cocktails: a Cuban mojito (best ever in ADVERTISEMENT

my life) and a glass of wonderful straw− berry daiquiri.

As a starter we decided on shrimps Cayo Largo in hot garlic oil with spicy vegetables, and baked goat cheese in filo pastry, served on a spinach salad with roasted pancetta, pine nuts and balsamic vinegar. Both dishes were harmonic and delicious. Next, my friend had an Argen− tinean rib eye steak with pepper sauce and grilled vegetables. The meat was nicely prepared: tender and juicy, with the light smoky taste of a wooden grill.

The other main course was Ropa Vieja, a beef jerky with creol salsa and jasmine rice. It is a common meal in Cuba, the beef is cooked until it is very soft, then shredded into thin fibers and seasoned with salsa sauce. I expected it to be a bit spicier, but this is the authentic taste.

For dessert we shared baked bananas with hot pineapple, flambéed with Cuban rum and served with vanilla ice cream. It was a nice finish to a great supper, and the one portion was more than enough for the both of us.

Yet another cocktail later, we headed to the dance floor. RATATOUILLE

LA BODEGUITA DEL MEDIO 1074 Budapest, Dob utca 57. www.labodeguitadelmedio.hu

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