Budapest Business Journal 22/07

3Special

BBJ

SPECIAL REPORT:

Power on the road

14

Report Toward nearly zero

energy buildings

17

SUSTAINABLE T DEVELOPMEN

SUSTAINABLE DEVELOPMENT APRIL 11, 2014 – APRIL 24, 2014

VOL. 22. NUMBER 07

BUDAPEST

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

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

Viktor Orbán’s Fidesz party delivered the results forecast in the polls and claimed a commanding win at the 2014 general elections. The premier promises an unchanged path towards already established political and economic goals, while the opposition is left licking its wounds after a disappointing performance.

03

BUSINESS

SPECIAL REPORT

SOCIALITE

Feel the fleet difference

No mumbo jambo

Hype on two wheels

Fleet management drives car sales in Hungary, and it is no different in the case of the market leader.

Andrea Kővágó-Laky, managing director of Ford Hungary, explains this recession-proof tool in her company’s kit. 10-11

When it first started to become a buzzword, ‘sustainability’ may have sounded like so much mumbo jumbo, a deliberately vague term used to disguise emptiness. But the concept now seems to be filling up with some substance. 16

The hip reputation of Budapest is sure to be strengthened with the kick−start of its public cycle sharing system dubbed MOL Bubi. After several years in the making, it’s time for Budapest to get on its bike and go for a pedal around the streets. 18-19

Photo: László Beliczay / MTI

IN THE BAG

WWW.BBJ.HU

Budapest Business Journal | April 11 – April 24

BBJ

3Special

SPECIAL REPORT:

Power on the road

14

SUBSCRIPTIONS

Report Toward nearly zero

17

energy buildings

SUSTAINABLE DEVELOPMENT

SUSTAINABLE DEVELOPMENT APRIL 11, 2014 – APRIL 24, 2014

VOL. 22. NUMBER 07

BUDAPEST B

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

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

IN THE BAG

SPECIAL REPORT

BUSINESS

SOCIALITE

Feel the fleet difference

No mumbo jambo

Hype on two wheels

Fleet management drives car sales in Hungary, and it is no different in the case of the market leader.

Andrea Kővágó-Laky, managing director of Ford Hungary, explains this recession-proof tool in her company’s kit. 10-11

When it first started to become a buzzword, ‘sustainability’ may have sounded like so much mumbo jumbo, a deliberately vague term used to disguise emptiness. But the concept now seems to be filling up with some substance. 16

The hip reputation of Budapest is sure to be strengthened with the kick−start of its public cycle sharing system dubbed MOL Bubi. After several years in the making, it’s time for Budapest to get on its bike and go for a pedal around the streets. 18-19

BUDAPEST BUSINESS JOURNAL 1 year HUF 27,500+VAT 6 months HUF 13,750+VAT 3 months HUF 6,875+VAT Newsletters HUNGARY A.M., ENERGY TODAY, REGIONAL TODAY 1 year HUF 179,000+VAT 6 months HUF 104,900+VAT 3 months HUF 58,900+VAT

Photo: László Beliczay / MTI

Viktor Orbán’s Fidesz party delivered the results forecast in the polls and claimed a commanding win at the 2014 general elections. The premier promises an unchanged path towards already established political and economic goals, while the opposition is left licking its wounds after a disappointing performance.

03

Call +36 1 398-0344, or email circulation@bbj.hu

BOOK OF LISTS 2012-2013

HUF 19,120+VAT

DIGIBOL Subscription fee: HUF 49,900 + VAT

MANAGING EDITOR:

Patricia Fischer COPYEDITOR/PROOFREADER:

Robin Marshall EDITORIAL STAFF:

Levente Hörömpöli-Tóth, Gergő Rácz, Zsófia Végh, András Zsámboki LISTS: BBJ Research (research@bbj.hu) NEWS AND PRESS RELEASES: news@bbj.hu DESIGN:

Absolut Design Stúdió (production@bbj.hu) LAYOUT:

Norbert Balázs ADVERTISING:

Absolut Media Zrt (hirdetes@amedia.hu) SALES: sales@bbj.hu

THE EDITOR SAYS

AS SEEN FROM MILES AWAY So there will be no big payout at the bookies: Fidesz cruised to victory in the 2014 general elections, exactly as expected. In fact, it took the blindest kind of faith for anyone to assume any different outcome, and that is hardly because of any all−encompassing adulation for Viktor Orbán and his colleagues that would have swept away any challenger.

Turnout was one of the lowest in Hungary’s history of democratic voting, which may well underline the one polling statistic that the left−wing alliance quoted repeatedly before the elections, namely that the majority of survey respondents said they were dissatisfied with the direction of the country. What they didn’t bother doing, was giving these very people an alternative that they could vote for.

Attila Mesterházy had managed to reassemble a socialist party from the ruins of its past that seemed like it may have at least a remote chance of becoming a viable challenger to govern the country. Now, all he has to show for his troubles is twice losing at elections as the leader of a major national party, a feat he at least shares with Viktor Orbán. Of course, unlike the Fidesz leader, Mesterházy has never tasted success at the polls.

The failure of the big left−wing collaboration is made all the more painful because the numbers show that its smaller parties, Gordon Bajnai’s Együtt−PM and Ferenc Gyurcsány’s DK, were both polling better when they stood alone than the four MP tally they each now have to show for their combined efforts.

The socialist skeletons that the governing side kept hidden in the closet only to conveniently allow them to fall out just

prior to the elections, the lack of a coherent opposition message and the general lack of confidence that had already led to these very same figures being asked to leave the premises in 2010 are factors that could bring down any political grouping, especially such a rag−tag outfit.

Also, if it weren’t obvious enough, politicians on the left need finally to grasp that the voters’ psyche and punishment mechanisms work very differently on the two sides of the aisle. We had a farmland affair, a liberated axe murderer, the troubled tobacco shops franchise, wide scale corruption in public procurement and still Viktor Orbán’s biggest concern is whether he will have a supermajority in parliament. And in reality he doesn’t even need that having already firmly settled Fidesz placemen in virtually all aspects of the state infrastructure.

In contrast, a well−presented corruption affair on the left immediately cut into its approval ratings, to the extent that it alone could mean the difference between victory or defeat at the elections.

The reaction of the left wing parties in the days after the defeat are starting to show that the inherent antagonism the parties felt for each other not only hasn’t mellowed, but has if anything intensified. The accusations, stingy comments and insinuations all hint that the moment you get behind the façade erected for public appearances, these people are at each other’s throats.

Now, all the leftist parties have to figure out is whom they most want to blame for a result that seemed inevitable to everyone else. Imagine what could have happened if they had to agree on something that actually mattered, like how to govern the country.

CEO:

Balázs Román PUBLISHER:

Tamás Botka

NO STOPPING THE MACHINE

CIRCULATION AND SUBSCRIPTIONS: circulation@bbj.hu PRINTING:

Absolut Print Kft

MEDIA REPRESENTATION: Absolut Media Zrt Address: Madách Trade Center 1075 Budapest, Madách Imre út 13-14., Building A, 8th floor Telephone +36 (1) 398-0344, Fax +36 (1) 398-0345, www.bbj.hu BBJ-PARTNERS

What We Stand For: The Budapest Business Journal aspires to be the most trusted newspaper in Hungary. We believe that managers should work on behalf of their shareholders. We believe that among the most important contributions a government can make to society is improving the business and investment climate so that its citizens may realize their full potential.

The Budapest Business Journal, HU ISSN 1216-7304, is published bi-weekly on Friday, registration No. 0109069462. It is distributed by HungaroPress. Reproduction or use without permission of editorial or graphic content in any manner is prohibited. ©2011 BUSINESS MEDIA SERVICES LLC with all rights reserved.

The Budapest Business Journal’s print run is audited by MATESZ, 1034 Budapest, Bécsi út 122-124, a member of IFABC.

BBJ.HU YOUR DAILY DOSE OF INFORMATION IN BBJ QUALITY

In the run−up to the election, officials of the government continued to say that the bulk of the job they undertook, which is fundamentally reshaping numerous key aspects of the country’s operation, is done. The reason they needed to be reelected was to preserve the achievements and so that a second term could be used to hammer out any kinks that may have been left.

Based on what we are seeing, not only is this period going to be more of the same, but also the reassurance of the election win is only going to bolster policymaking.

When Orbán faced the international press a day after winning the vote, he was true to form, and lashed out at any notion that his authoritarian approach had a role in tampering with the result, or that he would share the responsibility of giving the far right more than 20% of the vote. There was no indication whatsoever that there would be a search for more peaceful relations between the country’s government and the international media.

In terms of policies, even though the goals were mostly known before the elections, the speed is already showing that the government has no intention of taking it easy and slowing down. Already, the ground is being set to make the state energy group MVM a nonprofit provider, which will

presumably take over the customers of the utility firms that will – unsurprisingly – leave Hungary if they can’t make a profit, that being the ultimate purpose of any business.

The banks are looking at even more pain, when the next installment of the foreign currency mortgage bailout campaign, meant to serve as an ultimate solution to the problems faced by debtors, comes along. They are guaranteed even more losses, despite the fact that the government is trying to compel them to take a voluntary hit.

Just to make sure that there is some tension with the country’s foreign partners, state secretary János Lázár is complaining to a Norwegian fund that it is passing out grants through its own partners, rather than the Hungarian state, even though it has no obligation whatsoever to seek approval for how it spends its own money.

The first few days show that Orbán remains active and keen to continue his work, and will not necessarily be content with the “fine tuning” that was to serve as the core concept of the second term, at least in the pre−election rhetoric, but with similar wide sweeps.

Thus far, it also seems that those who aren’t beneficiaries of the Fidesz system can expect little overall change towards a more accommodating structure.

IN TERMS OF POLICIES, EVEN THOUGH THE GOALS WERE MOSTLY KNOWN BEFORE THE ELECTIONS, THE SPEED IS ALREADY SHOWING THAT THE GOVERNMENT HAS NO INTENTION OF TAKING IT EASY AND SLOWING DOWN

BBJ

1 News

NEWS

Short−term foreign debt rises 04 NEWS

Post−election snapshot

07

politics

ORBÁN EASES FIDESZ TO ANOTHER ELECTION VICTORY

GERGŐ RÁCZ

With 44.5% of the vote, Viktor Orbán’s Fidesz party has been reelected to government. The result is in line with general expectations, with polling forecasts and with indications that the unified alliance on the left wing hadn’t managed to generate sufficient appeal, while also having to deal with a series of carefully timed scandals in the run−up to the vote.

“Fidesz has been given a clear mandate to continue its work,” Prime Minister Viktor Orbán told an international press conference a day after the results of the election were known.

In the upcoming government cycle, right wing representatives will occupy 133 of the 199 parliamentary seats, giving it a broad power base to continue making fundamental changes if it chooses to continue with the approach of the 2010− 2014 term.

DISHEARTENED OPPOSITION The unfavorable foreshadowing of the past months on the political left came to maturity on April 6. The five−party bloc only managed to secure a little short of 26% of the vote. This gives the leftist bloc a total of just 38 seats in the new parliament; Gordon Bajnai’s Együtt−PM and Ferenc Gyurcsány DK both have four seats, leaving each one short of being able to form its own parliamentary caucus and getting the related exposure.

The green LMP’s decision to campaign alone and distance itself from the opposition grouping paid off to the extent that it passed parliament’s 5% threshold and will be part of the next assembly. Nonetheless, its result was worse than that of 2010.

One of the major developments of the 2014 elections was the self−styled radical

STORY HIGHLIGHTS ■

Fidesz reelected with comfortable majority ■ Political direction expected to continue, opposition in disarray

right essentially taking support from the left. The far right Jobbik party claimed more than 20% of the vote, but the party was reportedly aiming for an even higher total, and it was also disappointed at not being able to win a single individual constituency; all its representatives will come from the party list.

Prime Minister Orbán insisted to journalists that the extremist party does not pose a threat, and stressed that, from a proportional perspective, the strength of the far right had actually diminished when compared to the 2010 elections.

“We do not think investors should be overly concerned by Jobbik’s rise in the near term – its focus is not economic and fiscal policy but social policy,” said Nomura regional analyst Peter Attard Montalto in a research note. “Unlike other examples in the EU, where far right party support has triggered external diplomatic consequences, Jobbik will not be entering government and Fidesz will not rely on its support,” he added.

PRESSING MATTERS Orbán promised a seamless continuation of government work, the first step of which will involve finalizing his post election cabinet reshuffle. There is currently little more than speculation about its composition.

Rumors doing the rounds include current caucus leader Antal Rogán taking over as development minister, and state secretary János Lázár getting a ministerial position.

Source: National Election Office

The 2014 general elections results were in line with expectations and brought reelection for the governing Fidesz party. Having largely maintained its strength, and faced with a disappointed and even more fragmented political opposition, the third Orbán government is set to have a relatively easy time realizing its agenda.

DISTRIBUTION OF PARLIAMENTARY SEATS

As for the likely agenda, the government will most likely focus on efforts to phase out foreign currency mortgages once rulings from the European Court of Justice at the end of the month, and a consequent ruling by the Hungarian top court, have created the legal basis for a new measure.

This proposal is already prepared for deployment, and Fidesz is planning to submit it as soon as May. Orbán summed up his campaign promises by saying, “we’ll continue” without naming any new priorities or specific matters. Based on past performance and the rumors circulating, Hungary will

continue its defiant stance against the European Union, will continue to put its support behind manufacturing and, as a side note, there is some speculation that the sale of spirits will be revised through the introduction of liquor stores similar to the tobacco shop system.

Further steps are also promised towards realizing the goal of making energy services a nonprofit industry. The government announced the creation of a nonprofit provider just days after the elections. This company could take over service provisions if private companies decide to exit Hungary.

WE DO NOT THINK INVESTORS SHOULD BE OVERLY CONCERNED

BY JOBBIK’S RISE IN THE NEAR TERM – ITS FOCUS IS NOT ECONOMIC AND FISCAL POLICY BUT SOCIAL POLICY

04 News

WWW.BBJ.HU

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

NEWS

IN BRIEF

Budapest Business Journal | April 11 – April 24

We won Prime Minister Viktor Orbán on the night of the elections on April 6

BUDA CASTLE MONUMENT INAUGURATED, THEN CLOSED

Photo: Szilárd Koszticsák / MTI

The Buda castle bazaar (Várkert Bazár), a part of the global architectural heritage, was inaugurated days before the elections after an extensive refurbishment. The project involved creating a 2,500 square meter display area and a 900 sqm venue room. Shortly after the election results were known, the site was closed again for further renovation works.

ECONOMY MNB TO AMEND FUNDING FOR GROWTH CONDITIONS The National Bank of Hungary (MNB) has announced that conditions of its Funding for Growth scheme will be amended as of May 1.

The amendments include extension of the maximum term of working capital loans provided under the scheme from one to three years, and the deadline for drawing on investment loans will be extended by six months. The Funding for Growth scheme involves the National Bank of Hungary (MNB) providing 0% refinancing to banks, which must be relent to Hungary−based SMEs at a maximum interest rate of 2.5% APR. IMF: 2% GROWTH FOR HUNGARY GDP IN 2014 In its newly−released World Economic Outlook report, the International Monetary Fund (IMF) projects Hungary’s economy will grow by 2% in 2014, matching the central government’s projection and slightly higher than the prognostication put forth by Erste Group earlier the same week. The new figure was raised from a 1.3% projection six months earlier. Despite the basic positivity, the IMF nevertheless warned that “still−high external vulnerabilities, although declining, could weigh on growth” for Hungary and that “uncertainties associated with the resolution of foreign currency− denominated mortgages” was still of concern. Further forecasts by the IMF for Hungary included GDP growth of 1.7% in 2015; inflation rates of 0.9% and 3% respectively for ’14 and ’15; the current−account

balance dropping to 2.7% of GDP in ’14; and an unemployment rate of 9.4% this year.

SHORT-TERM FOREIGN DEBT RISES Hungary’s short−term external debt, based on residual maturity and excluding intercompany loans, rose €1.6 bln in the fourth quarter to €28 bln, as the residual maturity of some long−term government and corporate loans sank below the 12−month mark, according to the National Bank of Hungary (MNB)’s balance of payment report. Hungary’s international reserves stood at €33.8 bln at the end of last year, practically the same as at the end of 2012.

KSH REVISES JAN TRADE SURPLUS UP TO €482.4 MLN The Central Statistics Office (KSH) revised Hungary’s trade surplus for January to €482.4 mln in a second reading of data from a preliminary €461.4 mln. The surplus was up from €273.5 mln a year earlier.

January exports rose 3.1% yr/yr to €6.624 bln. Imports were down 0.2% at €6.141 bln. Export growth was revised up and import decrease was higher than in the first reading. In volume terms, export volume rose 6.1% in January. Import volume increased 3.6% from a year earlier.

Terms of trade improved 0.7% in January from a year earlier as export prices calculated in forint rose 0.3% and import prices fell 0.4% in the period. The forint weakened to the euro by close to 3% and to the dollar by 0.5% in 12 months. Imports from other European Union member states accounted for 74% of the total.

Exports to other EU countries made up 80% of the total.

Numbers in the news

71%

of full year target is Hungary’s cashflow− based general government deficit in Q1, the National Economy Ministry said in a first reading.

5.2% of GDP was Hungary’s net financial savings ration in 2013, equal to HUF 1,525 bln, data from the National Bank of Hungary shows.

DOMESTIC STATE ACQUIRES TEXTBOOK PUBLISHER According to information from anonymous sources, daily newspaper Népszabadsag reported that the central government has acquired textbook publisher Apáczai Kiadó és Könyvterjesztő; funding for the purchase had been allocated in a government resolution of March 20. While an official statement from the National Asset Management Company (MNV) reassured that negotiations on and the purchase of Apáczai Kiadó were “in line with the law”, Népszabadsag’s source claimed that the press had been sold for less than HUF 9 bln, well below market value. Founded in 1990, Apáczai Kiadó holds a 16% share of Hungary’s textbook market, with annual turnover of over HUF 2.5 bln.

HUNGARIAN LAMB SELLS BETTER Hungarian lamb is selling for a better price than last year, fetching 5−10 eurocents more per kg, head of the Mutton Product Council Árpád Bátor told MTI. About 150,000−170,000 Hungarian lambs are exported for the Easter holidays. This accounts for 30−40% of Hungary’s annual lamb exports. Currently the per kg farm gate price is €2.8−3. Sales of lambs generate revenue of about HUF 8.5 bln a year, or 85% of the sector’s total revenue. About 95% of Hungarian lambs are exported, primarily to Italy, but also to France and Germany. The stock of breeding ewes is 3−5% bigger than last year in Hungary, the head of the product council said.

POLITICS CFR: HUNGARIAN ELECTION PROCEDURE PASSES MUSTER Despite a fairly negative preliminary report released on Hungary’s 2014 national Parliamentary election by the Organization for Security and Cooperation in Europe (OSCE), a report from the Center for Fundamental Rights (CFR) in contrast reports that Hungary’s electoral procedures has “passed the test”. While a report from CFR, a local organization of attorneys and students formed in Hungary last year, hardly carries the weight of an internationally− recognized accredited body, national news service MTI felt obliged to report on it. CFR stated in part that the election had “ensured the free expression of the will of voters”; that the system for submission of ballots by voters aboard was a “good practice”; and that the sitting government’s recent gerrymandering of constituency borders was justifiable via Venice Commission guidelines and “Hungary’s legal traditions”.

160 TOTAL OBSERVERS FROM 18 COUNTRIES AT ELECTION Beyond the 79 OCSE observers in Hungary for the national election, some 81 others visited various locations in the country on Sunday. The Denmark− based Support Initiative for Liberty and Democracy (SILBA) and the U.S. embassy accounted for just under half of these, with 23 and 17 respectively registered to observe the process. Beyond this, representatives from Albania, Britain, China, Georgia, Greece, India, Iraq, Kazakhstan, the Netherlands, Nigeria, Portugal, Romania, Russia, Slovenia, South Korea and Venezuela attended polling in various locations throughout the country.

WWW.BBJ.HU

News 05

Budapest Business Journal | April 11 – April 24

COMPANY NEWS

The National Bank of Hungary (MNB) has fined three banks a combined HUF 18 mln for breaking rules on handling client complaints. The MNB fined K&H Bank HUF 15 mln for responding to more than half of complaints outside of the 30−day window. It fined AXA Bank’s Hungarian branch HUF 2 mln for violating rules on handling complaints, and it fined Banif Plus Bank HUF 1 mln for failing to open a telephone hotline for complaints.

Photo: Zoltán Illyés / MTI

JET2.COM RESURRECTS LEEDS-BUDAPEST FLIGHT

OTP Bank is moving closer to acquiring MKB Bank, the Hungarian unit of Germany’s Bayerische Landesbank (BayernLB), Reuters reported, citing three unidentified sources close to the matter. Reuters said the sources indicated that OTP and MKB have been engaged in intense talks regarding the sale over recent weeks and are likely to reach a deal.

DAILY BSE SHARE TURNOVER CLIMBS IN MARCH Average daily share turnover on the Budapest Stock Exchange was HUF 10.5 bln in March, 9.3% more than in February and 12.6% higher than in the same month a year earlier, the bourse said. Sport market turnover came close to HUF 228 bln, including HUF 220 bln in shares. Share market turnover rose 11.1% from February and 24.5% from the same month a year earlier. Concorde Securities generated the biggest share turnover in March, accounting for 19.3% of the total. Erste Investment was next with 15.1% followed by KBC Securities (10.8%), Wood and Company (9.9%) and Equilor Investment (9.3%).

Hungarian property developer Futureal has agreed to buy out its 50-50 partner in the NoVa Park shopping center in Gorzow Wielkopolski, Poland, the company said. Futureal did not disclose how much it was paying Caelum Development for the stake. “The acquisition was motivated by a 25% increase in year-on-year footfall and turnover figures,” Futureal said.

NoVa Park is home to more than 140 retail units on 32,400 sqm.

Korea-based Samsung is winding up its plasma display panel unit in Hungary, news portal hvg.hu said. The unit had revenue of HUF 76 bln (€249.4 mln) in 2012, the paper said. Samsung SDI Magyarország’s plant on the outskirts of Budapest was built in 2011.

Hungary-based Trium-iTech has signed a contract to develop an IT system for Sudan’s tax and customs office with state-owned El-Hadaf Services.

An El-Hadaf representative informed national news service MTI that the contract was valued at $30 mln.

UK-based discount airline Jet2.com will relaunch its twice-weekly flight between Leeds Bradford Airport in England and Liszt Ferenc Airport, per an announcement from Liszt operator Budapest Airport. The twiceweekly, Thursday-Sunday flights are a resurrection of the same trip that ran in 2012, and will run at least through the summer season.

ITL Group has published its Italian-language investing guide titled ‘Ungheria 2014 - Guida agli Investiment’, which is going to be a yearly publication from now on, Alessandro Farina, managing director of ITL Group said at a press conference. “With this new project ITL Group has the intention both to show the relevance of the Italian current presence in Hungary and to underline the reasons Italian investors consider Hungary as an advantageous location for their activities and to expand their business,” he added Generali-Providencia has won a tender to insure the vehicles of Hungary’s national ambulance service with a bid of HUF 485 million. Under terms of the bid, Generali-Providencia will provide mandatory insurance for 1,001 vehicles and comprehensive insurance for 997 vehicles.

Hungary’s government has signed a strategic cooperation agreement with the local unit of multinational drugmaker GlaxoSmithKline (GSK) at its vaccine plant in Gödöllő, the 43rd entity to enter into such an agreement since early 2013.

The number of Visa card transactions in Hungary rose 10.6% in the business year ended September 30, Visa Europe director for Hungary Ede Kiss said.

The number of transactions at point-of-sale terminals climbed 13.9% during the period, Kiss said. Visa does not reveal the value of transactions, but he said purchases with corporate cards were up 16.9%. There are 1.3 million Visa cards in circulation in Hungary.

The board of FHB Mortgage Bank will ask shareholders at an annual general meeting on April 28 for a mandate to raise capital by a maximum HUF 1.65 bln, at nominal value, or 25%, over a period of two years. The board will propose placing last year’s profits into reserves. According to company figures, FHB Mortgage Bank turned a total profit of HUF 127 mln in 2013, with assets worth HUF 587.3 bln.

Software developer EPAM Systems Hungary plans to increase headcount by 350 this year, the company told MTI. EPAM Systems employs more than 1,000 people at its bases in Budapest, Debrecen and Szeged at present.

The Hungarian subsidiary of Switzerland-based pesticide-and-seed company Syngenta had turnover of almost HUF 60 bln in 2013, about a 15% uptick from combined revenue of HUF 51.4 bln in ’12. In Hungary, Syngenta enjoys a 24% share of the domestic seed market for corn and 34% for vegetables; the company currently employs 340.

The “Green Island,” a floating waste disposal site for ships navigating the Danube, was inaugurated in Budapest. The €2 mln project was financed with venture capital, said Tanker Port Environment Technology and Innovation managing director Pál Hoffmann. He said the operator expects to generate revenue of €2 mln in the “island’s” first full business year in 2015.

German-owned automotive and electronics industry supplier Prec-Cast has laid the cornerstone of a 12,000 sqm production hall at its die-casting base in Sátoraljaújhely. The investment is the first in a series of projects worth some €100 mln. The investment will create 300 jobs, adding to the more than 900 employees at the base.

Norwegian Air Shuttle launched its Budapest-London flight on April 6. The flight will operate three times a week, on Sunday, Tuesday and Thursday, flying between Liszt Ferenc International Airport and London-Gatwick.

Wizz Air, easyJet, Ryanair and British Airways also fly between airports in the two capitals.

Budapest Bank, a unit of GE capital, had after-tax profit of HUF 14 bln in 2013, up 30% from a year earlier. Total assets fell 2% to HUF 905.3 bln in the 12 months to the end of December. Stock of loans edged down 1% to HUF 625.4 bln.

Horizontimpex and Licencker are building a HUF 1.3 billion mineral water bottling plant in Detek, mayor Béla Viszlai told MTI. The plant is expected to be inaugurated in the second half of the year. It will have capacity to turn out 10,000 bottles of “export-premium” mineral water an hour, he added.

WWW.BBJ.HU

06 News

Budapest Business Journal | April 11 – April 24

ENERGY

NEWS FOR THIS SECTION IS TAKEN FROM THE BUDAPEST BUSINESS JOURNAL’S DAILY BRIEFING, ENERGY TODAY NEWSLETTER AT WWW.BBJ.HU/STORE/NEWSLETTER-PACKAGE

RUSSIA, HUNGARY SIGN PAKS UPGRADE CREDIT AGREEMENT State secretary János Lázár has confirmed that Hungary has signed an agreement with Russia on credit for an upgrade of the Paks nuclear power plant. The agreement will be submitted to Parliament and has already been sent to Brussels, Lázár said. Russian daily Vedomosti said that Russia and Hungary had signed the agreement on the €10 bln state loan. The Russian government approved a draft of the agreement on March 10 and Prime Minister Dmitry Medvedev mandated further negotiations on it among Russia’s ministries as well as with Vnesheconombank and Rosatom. In the middle of March, Lázár said the government would submit the credit agreement for the upgrade to Parliament, after the Russian government approved it. Russia earlier agreed to lend Hungary the €10 bln to build two blocks at the Paks nuclear power plant, covering 80% of the costs. Russia’s Rosatom is the general contractor for the blocks.

GOV’T IN TALKS ON E.ON UNIT ACQUISITION, REAFFIRMS STAND ON UTILITIES The government is continuing talks with Germany−based utility giant E.ON regarding

acquisition of its three gas network and customer service units in Hungary, National Development Minister Zsuzsa Németh said at a press conference on the activities of the state−owned Hungarian Electricity Works (MVM). MVM acquired E.ON’s gas trade and storage businesses in Hungary for HUF 281 bln last year. It also bought a 49.83% stake in regional gas distributor Főgáz from RWE for HUF 41 bln. Németh noted that the government had mandated MVM to purchase the majority stake in Főgáz from the local council of Budapest. Németh said the newly reelected state government would continue its earlier energy policy, and that the conditions for a reduction in energy prices for industry were being created.

MOL CLOSES DEAL WITH TURKISH PETROLEUM IN RUSSIA Hungarian oil and gas company MOL has closed a deal to sell a 49% stake in BaiTex, which holds licenses in Russia’s Volga−Ural region, to the Turkish Petroleum Corporation (TPAO) for net $175 mln plus adjustments.

MOL retained its 51% stake in BaiTex. MOL’s proven and probable (2P) reserves fell by 54 million barrels of oil equivalent as a result of the sale. MOL announced the deal in February. “The divestiture is

in line with MOL’s long−term portfolio management and risk sharing strategies as the company looked for a strong partner in BaiTex,” MOL said. It added that it was in “active discussions” with TPAO “to identify other potential upstream co−operation opportunities and lay the foundations for a future strategic partnership.”

GAZPROM CEO: REVERSE GAS FLOW TO UKRAINE FROM HUNGARY, POLAND ILLEGAL Faced with losing millions of rubles hand over fist in natural gas sales due to the Russia/Ukraine conflict, Gazprom CEO Alexei Miller declared that not only are reverse gas flows from Hungary and Poland “technically impossible” but also “illegal”.

While insisting that the pipeline “cannot have gas flowing in both directions at the same time,” Miller alleged manipulation of the equipment in Ukraine. “Our terminals are in Europe. We will certainly look very carefully into that to see if this scheme is legal. [‥.]

I think that the European companies that plan to supply gas to Ukraine through such reverse flow should think twice whether such transactions are legal.” Despite the fact that Hungary and Poland interests are simply reselling natural gas obtained from Russia,

the prices charged in Ukraine are still lower than under a direct Gazprom−to−Ukraine transaction. This weekend, while warning that supplies of natural gas to Ukraine could be soon cut off by Russian interests, Prime Minister Arseniy Yatsenyuk stated that up to 20 billion cubic meters in reverse−gas flow from Hungary, Slovakia and Poland could be gotten annually.

HUF 2.2 BLN BIOGAS PLANT INAUGURATED IN MISKOLC The city of Miskolc has inaugurated a HUF 2.2 bln biogas plant, a project fully funded with a European Union/Hungarian state grant. Touted as a fully self−sustaining system in terms of energy supply, the plant will use sewage sludge from the Miskolc municipality.

Work on the plant began in August 2011 under auspices of the project company Biogas− Miskolc Kft, a joint venture of local waterworks company MiVíz, Bioenergy−Miskolc Kft and WIS Zrt. Biogas−Miskolc managing director Imre Mehn stated upon the project’s introduction that the plant “is a move towards the establishment of sustainable energy supply in the city as it will create the possibility to use the biogas generated in other ways in the future”. Test operation of the biogas plant is scheduled for May.

ADVERTISEMENT

BUSINESS INNOVATION MASTER AND PUPIL What can large firms and startups learn from each other?

Conference location and time: Gerbeaud House (1051 Budapest, Vörösmarty tér 7.), May 6, 2014 2pm-6pm Moderator Veronika PISTYUR – CEO, Bridge Budapest

When does the time for change come? How to give professional and competitive formal outlines for soaring, innovative ideas?

What can the corporate world learn from startups?

Hungarian enterprises in the global market Proposed speakers József VÁRADI – general manager, Wizz Air Hungary Kft. Dr. Balázs VINNAI – CEO, IND Group Multinational enterprises in the Hungarian market Speaker Judit GRÓSZ – Developer Platform Evangelist, Microsoft Magyarország Kft. What can startups learn from multinational enterprises?

Speakers Péter BALOGH – CEO, NNG Kft. Anton KOVACH – CEO, ShiwaForce Katalin IVÁNKA – owner, IVANKA Beton Design Zakariás TIPTON – Tipton Napsugár VON BITTERA – designer, Napsugar von Bittera Szabolcs SZELEI – marketing director, Google Magyarország Zoltán SZARVASI – owner/CEO, Digital Apes The recipe for change management: Intellectual and venture capital Speakers Levente ZSEMBERY – CEO, BNV Equity Péter KOVÁCS – Co-Founder & Chief Social Evangelist, IseeQ

Language: Hungarian Participation fee: HUF 19,900+VAT/person (includes entry for presentations and reception) Early Bird offer until April 18 - HUF 15,900+VAT/person REGISTER NOW Sponsors:

WWW.BBJ.HU

News 07

Budapest Business Journal | April 11 – April 24

POST-ELECTION SNAPSHOT: NUMBERS AND REACTIONS The new Orbán government continues its wardenship of the economy with the following lay of the land.

1.1% growth in 2013 gross domestic product, various forecasts projecting around 2% growth in 2014.

2.6%

€766 mln Continued reliance on exports as evidenced by the latest, €766 million surplus in the February foreign trade balance.

0.1%

305

Historically low, practically nonexistent headline consumer price inflation of 0.1% on the back of centrally mandated utility price cuts.

The central bank has a mid−term target of 3%.

The euro−forint exchange rate hovers around 305, recovering from the two year low seen at the time of the emerging market jitters earlier this year, but the national currency is still weaker than the levels taken into account for the 2014 budget.

A record low base rate of 2.6% as the National Bank of Hungary aims to promote economic growth with low interest rates.

The new cabinet will be taking its oath just as analysts expect the cutting cycle is coming to an end.

Reactions from the disappointed political opposition “Of course we have to evaluate the reasons of the defeat. Honestly, in depth, without taboos. But there is a new campaign, the EP campaign.” DK president Ferenc Gyurcsány.

“We accept the result, but we cannot congratulate the winner, since they won the elections through unfair rules.” Attila Mesterházy, MSzP chairman.

Photo: Attila Kovács / MTI

“I believe that the challenging forces suffered a very serious defeat at the elections, which raises very serious questions that point well beyond personnel affairs.” Co−chairman of PM, Gergely Karácsony.

“We will make no compromises so we can form a caucus, we will pursue our policies on our own. After the defeat, Együtt−Pm will most likely turn to non−parliamentary channels to realize its original political goal of ushering in a new era in Hungary.”

Viktor Szigetváry, co−chairman of Együtt.

BBJ

2Business Insight

THE COURIER RUNNING LATE BUT ON THE WAY Even the extended deadline was missed on March 31, and Synergon Ltd still has not delivered its 300 trams because they have not yet been equipped with GPS, the heart of the FUTÁR (Courier) system.

BKK is to charge Synergon a late performance penalty, the sum of which may amount to more than half a billion forints.

ADVERTISEMENT

ANDRÁS ZSÁMBOKI

The FUTÁR (the Hungarian initials standing for System for the Coordination of Public Transportation and Passenger Information) project is almost ready to be launched, except for the installation of GPS into 300 tram cars, online magazine Index learnt from BKK at the end of March.

According to the press department of BKK, the enterprise is 97% complete, but Synergon Integrator Ltd, whose task

it was to equip the trams with GPS, is going to be charged a late performance penalty. In the history of FUTÁR, this is not the first case of late performance.

The contract for the trams was signed in October 2010, and the completion of the job was promised for the summer of 2012, later modified to summer 2013.

The infotech main contractor Synergon explained the delay by the fact that the upgrading of the trams involved the obtainment of permissions from the authorities, which is very time− consuming. “There are tram cars which

are unable to run the prescribed 1,000 km test ride because they break down repeatedly,” an expert unwilling to be identified told Index magazine.

LAMPPOST DISPLAYS Testing started out with 10 displays; today there are screens operating at 50 transportation hubs. “At the time of the completion of the system, there will be online information on buses and trams at 250 locations,” a representative of BKK said. “That means we are still far away from full coverage of the city.”

WWW.BBJ.HU

2 Business

Budapest Business Journal | April 11 – April 24

09

WHAT IS FUTÁR CAPABLE OF? •

Modernized coordination of traffic. FUTÁR is based on satellite-based monitoring of vehicles. It observes all day whether vehicles are running on time and sticking to the timetables. Vehicles are equipped with onboard computers that indicate to drivers whether they should speed up or slow down in order to keep themselves to the timetable.

•

Dynamic passenger information. With the help of displays installed in vehicles, passengers receive real time

Photo: BKK

information on the time the vehicle can be expected to get to the next stop, and this piece of information also goes to the displays installed in the bus or tram stops.

• LATE PERFORMANCE PENALTY The entire FUTÁR project was supposed to cost HUF 6.7 billion. Because of postponed deadline, however, Synergon has been obliged by BKK to pay a HUF 480 million late performance penalty. The main contractor has admitted this sum, equivalent to 8% of the whole project’s expenditure, and there is no dispute over it between BKK and Synergon. An expert who wished to remain anonymous explained

that the penalty might have something to do with the fact that Synergon’s former President of the Board of Directors Zoltán Jutasi resigned from his post in October last year, and he also gave up his post in the auditing commission.

According to the information of HVG, the full sum of the late performance penalty already exceeds HUF 450 mln, of which BKK has already withdrawn HUF 350 mln from Synergon’s bank account.

Traffic planning. For the transportation manager, more data means more flexibility. For example, if there is an accident, a replacement can be arranged much faster.

•

Preferencing. There will be 30 crossings with traffic lights where public transportation will be given priority over cars.

This makes the running times of buses and trams shorter, and saves BKK money.

ADVERTISEMENT

CONTEMPORARY ROMA and 20th century Hungarian art collection

The KuglerArt Gallery was born through the inspiration of the films of the Roma made by the internationally recognized director Edit Kőszegi.

Its aim is to spread exceptionally valuable and exciting artworks to the widest possible audience, thus supporting the artists.

Paintings, graphics, films, books, albums, clothes, accessories and other surprises – everything that is associated with the idea of creativity in the film industry and applied arts.

Edit Kőszegi’s gallery presents and sells these artworks, accompanied by pieces from Roma culture.

The gallery shop sells clothes and accessories that were designed under the theme of ‘Tradition and modernity’, and Kőszegi’s documentaries of Roma traditions and artists are also available.

The gallery’s collection has been displayed at several international exhibitions in Passau, Vienna, Paris and Stockholm.

The KuglerArt Gallery is a cultural forum and also an educational venue, where students can gain a closer insight into the traditions of Roma culture in Central Europe. The regularly organized salon nights provide a unique and high-quality cultural experience for the audience.

The opening night of the gallery at its new location will take place at 5:30 PM on April 25 (District 5, Sütő utca 2, near Deák tér).

At the opening ceremony, we will commemorate artists Jolán Oláh and her late husband Balázs András Balogh, who passed away recently.

An exhibition of work by their granddaughter Kitti Balázs – currently a student at the University of Applied Arts – will be on display.

The night will also see the introduction of Nóra Hidvégi’s creative community dubbed ‘Csütörtök Szobaszínház’ (Thursday room theater).

10 2Business // In focus: Fleet management

WWW.BBJ.HU

Budapest Business Journal | April 11 – April 24

FEEL THE FLEET Ford retained its position as Hungary’s favorite car manufacturer in 2013, and it was Andrea Kővágó−Laky who made it happen to a large extent. The managing director of Ford Hungary, who was awarded the title ‘Manager of the Year 2013’, speaks about the secrets behind the success, and how fleet management added to it in particular.

LEVENTE HÖRÖMPÖLI-TÓTH

Q

Ford has had a leading share of the Hungarian car and commercial vehicle market for a nearly uninterrupted period of five consecutive years now. What role did fleet management play in this?

A: Our fleet management−related successes are very important in this regard. The volume of domestic fleet sales dropped as a result of the crisis, yet to a smaller extent than the entire market did. Accordingly, sales shifted to the fleet market. Among fleet customers, operative leasing was primarily popular with multinational and large corporations in Hungary. It is hard to judge whether it is due to the crisis or successful sales, but the fact is that fleet solutions have proved to be increasingly recession−proof.

Q

Financial benefits must have been a key incentive.

A: The undoubted advantages of outsourcing fleet management tasks are a smaller level of investment and HR intensity, predictability and the ability to keep costs under control. Long−term leasing of cars also carries tax incentives due to VAT and deprecation rules. In the case of larger companies, there exists another aspect, namely the fact that cars leased this way will not be entered in to the books as assets, and so financial figures look improved.

Q

What about SMEs? A: The SME sector was hit because of the uncertain economic prospects and financing difficulties. After the first shock, however, orders started to grow slowly but continuously. This customer segment is targeted by a fleet management offer named ‘Ford Business Partner’ worked out by Ford Credit, as a result of which we should further strengthen our lead position in the fleet market.

Q

What financing methods are predominant?

A: In the case of public procurement and large and international corporations, self−financing still rules the day. Fleet management is picked by around one third of such businesses.

STORY HIGHLIGHTS ■

Ford’s market leading position further strengthened ■ Fleet management makes up a large share of market performance

For SMEs, when thinking in terms of commercial vehicles, the low−interest loans of the Hungarian National Bank dominate the market, so other schemes have a hard time to compete. Cars show a subtler picture; cash payment, fleet management and the Bonus Financing Scheme of Ford Credit offered to retail customers are all popular.

Andrea Kővágó−Laky has been working for Ford Kft since 1994, and became managing director in 2005.

She drove the Hungarian company to its market leading position during the hardest years of the crisis. Her achievements were credited through the ‘Manager of the Year 2013 Award’, making her the first and thus far only woman to have won the prize.

CV

Q

What is the ratio between cars and commercial vehicles when it comes to fleet management?

A: The pre−crisis 50−50% ratio shifted towards fleet sales for Ford, just as on the market in general. In Q1, 82.6% of cars were sold to legal persons, whereas

IT IS HARD TO JUDGE WHETHER IT IS DUE TO THE CRISIS OR SUCCESSFUL SALES, BUT THE FACT IS THAT FLEET SOLUTIONS HAVE PROVED TO BE INCREASINGLY RECESSION-PROOF

WWW.BBJ.HU

2 Business

Budapest Business Journal | April 11 – April 24

// In focus: Fleet management 11

DIFFERENCE commercial vehicles saw an even larger disproportion of 90.9%. In both cases, however, the ratio of sales to private customers has gone up compared to the previous year, even if not significantly.

Between January and March, 29.1% of our total domestic sales came from commercial vehicles, which corresponds to the trend of previous years. Thanks to that, every fifth commercial vehicle sold in Q1 in Hungary was a Ford, and thus we top the sales charts in this segment.

Q

What types of vehicles are most sought after in the fleet scheme?

A: Our best−selling cars are the Focus, (the most popular car in the world in the past two years), the Mondeo and the Fiesta (the most popular small car in the world in the past two years). Besides these, top executives have frequently picked the S−Max and the Galaxy. In the case of commercial vehicles, the Transit is clearly the biggest hit, and that won ‘Commercial Vehicle of the Year 2013’ prize. Another favorite is the Ranger, voted ‘Pickup of

the Year’ in 2013. However, we expect exceptional performance from the Transit Connect (‘Commercial Vehicle of the Year 2014’) as well as the brand−new, two−ton Transit and the Transit Courier.

Q

How typical is demand for low−cost vehicles on the part of companies?

A: So−called TCO (Total Cost of Ownership)−based supplies started in the past few years, an approach that, though not yet a trend, is gaining ground.

Weight of consumption and servicing has become more predominant when making decisions. Environmental awareness is on the rise. What we most frequently see is that an average value is set for the CO2 emissions of a fleet, which describes the fuel consumption of the cars too.

The vehicles of the top executives typically pull down the average, whereas those purchased for smaller−scale works normally improve it. In the latter category there is a bigger need for green, more economic versions. In order to meet this

market demand, Ford has its so−called Econetic versions in its catalogue. CO2 emissions of the Focus Econetic, which sells well with regional representatives and mid−rank executives alike, amount to merely 99g/km, but a version with a figure of 88g/km is also available. This figure makes it the family−sized car on the market with the lowest emissions in the non−hybrid class.

Q

How does Ford build an edge over its competitors?

A: Our main effort is to support the work of its corporate clientele with strong solutions in every area. Our range of products, which can surely be labeled as Ford’s strongest model portfolio of all time, meet the full spectrum of needs. Our dealer network not only covers the country, but also has always been the strongest. It has emerged from the crisis more solid than ever. We can offer useful solutions to our partners in the field of service and spare part sales such as through the electronic service log, the five−year warranty adapted to the

operation cycle or Ford Assistance that may be extended to the entire period of operation.

Q

What are the overall and the company specific market trends?

A: The Q1 growth figures give reason to be confident. Whereas the car market grew by 23.4% from the same period last year, growth amounted to 25.4% and 35.5% in the case of commercial vehicles and small− sized commercial vehicles, respectively. We don’t expect such a growth rate throughout the whole year, but a slow upward trend has started on the market. Many analysts regard the commercial vehicle market as an indicator for economic growth, so the good mood is a positive sign.

Our goal is to keep the leading position that Ford has on the car and commercial vehicle market in Hungary. Since in Q1 we also managed to increase our sales at a bigger rate than the average, and by hitting 11.04% we further solidified our market share, we wouldn’t rule out the possibility of selling as many as 8,000 vehicles this year.

EXPERT OPINION

RENT A CAR, NOW Gábor Dévai MANAGING DIRECTOR, SIXT HUNGARY

Sixt is a well-established name on the Hungarian car rental market.

Could you tell us something about the company’s presence in Hungary?

Sixt Hungary, as a franchise partner of Germany’s Sixt AG, has been offering high-quality car rental services to its clients since 1999. We currently have 350 cars in our rental fleet. We are planning to increase our fleet up to 450 for the summer period.

Is short-term car rental also available in Hungary?

According to the strict standards of Sixt, our short-term car rental services offers the same high-quality and cost-efficient service to our clients in Hungary as at every single Sixt locations in the world.

We guarantee that our short-term rental cars are always in perfect condition with low-mileage and equipped with state-ofthe-art technology.

How would you summarize the operation of Sixt Hungary?

The profitability and high standards of our services have been recognized with several awards in the past few years.

The company received the Superbrands award in 2008, 2010 and 2011. In 2014, Sixt Hungary was the first company in Hungary to receive the title of Excellent Certified Service Provider (authorized

by InterCert Kft) from the Association of Hungarian Car Rental Companies. We also won a Business Excellence award in 2012. Sixt AG named the leasing division of the firm the Fastest Growing Sixt Leasing Partner in 2007, from 85 partner countries.

What are the services that differentiate Sixt from its peers?

We offer services for fleet management companies: during the interim period (until their clients receive the lease vehicles), we ensure rental cars for them, also pre-delivery service. These terms are usually two to three months long.

Our innovative reservation system allows our clients to take over the ordered car immediately at a requested location and time. In case we do not have the requested model in stock, we ensure a higher category model without extra charge. We ensure replacement cars in case of malfunction. With short-term car rental, clients can try several models and categories during the rental period.

www.sixt.hu

ADVANTAGES OF RENTING A CAR: • • • • • • • •

• • • • •

•

No service fee No permanent insurance cost Ensures the most suitable car for every occasion Quick solution if you need a car immediately Cost of services can be planned long-term No amortization cost No extra human resources for car administration Rental companies take care of operation, service, tires, assistance services in Hungary and abroad, replacement car service Cost-efficient, as the amount planned for car purchase can be spent on other things You always have a new car (the average age of the fleet is 12 months) Unique and customized offers, flexible pricing Rental fee can be written down as a cost, therefore the tax base can be reduced In case of possible penalties (such as speeding tickets) user remains anonymous (so no risk of losing one’s driver’s license). Penalties are paid by the rental company and are charged to the client afterwards.

Additional accessories: GPS, internet router, baby seats

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

12

2 Business

WWW.BBJ.HU

// In focus: Fleet management

Budapest Business Journal | April 11 – April 24

Car fleet management companies

10,200

10,200

4,800

335

OTHER

FLEET REPORTS

REPLACEMENT CAR

FUEL CARD

POLICE REGISTRATION

REGISTRATION AT MUNICIPALITY

INSURANCE SERVICES

ALL INCLUSIVE NEW VEHICLE ADMINISTRATION

FLEET OPTIMALIZATION

FLEET DEVELOPMENT

FLEET ANALYSIS

NO. OF CLIENTS ON MARCH 1, 2014

-

120

Âť

www.aldautomotive.hu

ANDREW'S LEASING & FLEET KFT

2,648

2,648

500

)XOO UDQJH RI FDU Ă HHW PDQDJHPHQW services

Âť

Âť

Âť

Âť

Âť Âť Âť

Âť

ZZZ DQGUHZVĂ HHW KX

ARVAL HUNGARY FLEET MANAGEMENT KFT www.arval.hu

AVIS LEASING/ AUTĂ“FLOTTA KFT

Âť

www.avislease.hu

BUDAPEST FLOTTA ZRT ZZZ EXGDSHVWEDQN KX FVRSRUW Ă RWWD LQGH[ SKS

GAS-CAR KFT

Âť

905

ZZZ JDVFDU KX

LEASEPLAN HUNGĂ RIA ZRT www.leaseplan.hu

MAX RENT KFT www.maxrent.hu

MKB-EUROLEASING FLEET ZRT

Âť

Âť

Âť

602

Âť

Âť

Âť

316

Âť

Âť

Âť Âť

Âť

)XOO UDQJH RI repair services, tire service, motorway VWLFNHU JDUDJH driver

?ZZZ EXGJHW KX

11,453

7,215

3LFN XS VHUYLFH driver, operative OHDVLQJ OHDVHEDFN

Âť = would not disclose, 15 QRW UDQNHG NA = not applicable

Âť Âť Âť

Âť

1138 Budapest, VĂĄci Ăşt 193.

(1) 450-7717 (1) 450-6876 DXWRSDUNXJ\IHO# JH FRP

–

Âť

Âť

57

1994 48

Sió-CAR Kft (100) –

Gåbor Morcz – Gåbor KÜrmendy

6LyIRN )Ĺƒ XWFD (84) 505-439 (84) 505-974 LQIR#JDVFDU KX

1994

– LeasePlan Corp. N.V (100)

Roelof Hansman – –

1113 Budapest, %RFVNDL ~W ² (1) 236-3636 (1) 236-3690 XJ\IHOV]ROJDODW# leaseplan.hu

Attila Szabó (90)Norbert Szabó (10) –

Attila Szabó 3pWHU %RUV]pNL –

1037 Budapest, BĂŠcsi Ăşt 254.

(20) 250-7373 (1) 367-3590 maxrent@maxabo.hu

100 -

14,670

Âť

Balåzs Gergely Toldi – –

Âť

1990

Âť

ÔMOHQJ\HO Ady Endre utca 15.

(40) 200-475 (1) 814-4701 info@avislease.hu

185

Âť

Gyula Gombos – –

2002

%XGDSHVW %DQN =UW

–

–

Âť

KWWS Ă RWWD QHOVRQ KX

PANNONIA RENT A CAR KFT

Gåbor Gombos (100) –

Âť

6]pNHVIHKpUYiU VĂśrĂśsmarty tĂŠr1.

(22) 514-190 (22) 514-193 Ă RWWD#QHOVRQ KX

1113 Budapest, %RFVNDL ~W ² (1) 279-3300 (1) 279-3329 info@arval.hu

Låszló Zsidó, Lajos Varga (ULND 'VXSLQ Horvåth –

Kålmån Tekse – –

100 -

– Arval Service Lease S.A (100)

1992 26

2003

1022 Budapest, BimbĂł Ăşt 56.

(1) 488-9922 (1) 488-9920 LQIR#DXWRSDUN KX

Endre Kocsis (100) –

1106 Budapest, Ă–rs vezĂŠr tere 25.

(1) 505-5100 (1) 505-5130 HQGUH NRFVLV# DQGUHZVĂ HHW KX

GÊza Rozsnyay ErzsÊbet %LHQHUQp .yNDL –

2000 5

Endre Kocsis Adrienn TóthNÊmeth –

0.% (XUROHDVLQJ =UW

0.% %DQN =UW

(XUROHDVLQJ LetÊt Kft (0.03) –

1133 Budapest, VĂĄci Ăşt 76.

(1) 802-5800 (1) 802-5830 info@ aldautomotive.com

1999 62

Viktor SzĂĄntĂł 0DULDQQ )HNHWH ZoltĂĄn BorbĂŠly

403

54

– ALD International SA (1) ALD Automotive SAS & &R .J

710

74

1,538

2003 33

1995 6

89

1,936

ADDRESS PHONE FAX EMAIL

Âť

Occasional car rental, parts rental, 24hr assistance, driver service

2,386

Âť

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ZZZ DXWRSDUN KX

NELSON FLEET LEASING KFT

Âť

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

ALD AUTOMOTIVE HUNGARY KFT

SIZE OF MANAGED FLEET ON MARCH 1, 2014

COMPANY WEBSITE

NET REVENUE FROM FLEET MANAGEMENT IN 2013 (HUF MLN)

TOTAL NET REVENUE (HUF MLN) IN 2013

SERVICES

YEAR ESTABLISHED NO. OF FULL-TIME EMPLOYEES ON MARCH 1, 2014

In alphabetical order

Âť Âť Âť Âť Âť Âť

Car rental in +XQJDU\ DQG abroad, driver service

Âť

Âť

Âť

Krisztina PolyĂĄk .DWDOLQ %ULHJHU

Norbert Zemanko

1013 Budapest, Krisztina kÜrút 41–43.

(1) 214-0420 (1) 241-0421 rentacar@budget.hu

7KLV OLVW ZDV FRPSLOHG IURP UHVSRQVHV WR TXHVWLRQQDLUHV UHFHLYHG E\ $SULO DQG SXEOLFO\ DYDLODEOH GDWD 7R WKH EHVW RI WKH %XGDSHVW %XVLQHVV -RXUQDO¡V NQRZOHGJH WKH LQIRUPDWLRQ LV DFFXUDWH DV RI SUHVV WLPH :KLOH HYHU\ HIIRUW LV PDGH WR HQVXUH DFFXUDF\ DQG WKRURXJKQHVV RPLVVLRQV DQG W\SRJUDSKLFDO HUURUV PD\ RFFXU $GGLWLRQV RU FRUUHFWLRQV WR WKH OLVW VKRXOG EH VHQW RQ OHWWHUKHDG WR WKH UHVHDUFK GHSDUWPHQW %XGDSHVW %XVLQHVV -RXUQDO 1075 Budapest, Madåch Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

BBJ

3Special Report Power on the road

14

Toward nearly zero energy buildings

17

SUSTAINABLE DEVELOPMENT

14

WWW.BBJ.HU

3

Budapest Business Journal | April 11 – April 24

POWER ON THE ROAD Though still a fledgling niche worldwide, the electric car market is expanding and its full potential has yet to be tapped. Slowly, plug−in cars are also gaining ground in Hungary, and the government says it is aiming to create further incentives.

STORY HIGHLIGHTS ■

Electric car sales set to gradually expand rather than explode ■ Hungary is mulling new incentives to promote the technology

2.36 million electric cars sold at the final year of the decade globally.

ABI conceded that, thus far, sales have been disappointing, but noted that there are now initiatives that could potentially bring about changes. In the United

spread of electronic vehicles because of their environmentally friendly operation.

Asked about additional involvement by the state in promoting plug−in cars, the ministry said further incentives are

States there are subsides available for developing the infrastructure related to the operation of electric cars. In Germany and the Netherlands, owners of electric cars are eligible for cuts or exemptions for various vehicle−related taxes.

Similar provisions are also in effect in Hungary, the ministry explained: new electric vehicles are exempt from the registration tax, are eligible for parking fee discounts, and the government is generally supportive of the greater

being considered, although it provided no further details.

However, Prime Minister Viktor Orbán has recently talked about the prospect of giving electricity a greater role as a fuel in road commerce. He referred to the availability of significant quantities of cheap energy from the expansion of the Paks nuclear power plant that could be utilized to support the “electrification” of road travel. This is also part of the country’s energy strategy, approved in 2011.

GERGŐ RÁCZ

It is still a rare phenomenon to see a fully electric vehicle, let alone a hybrid, rolling near silently along the roads of Budapest, even though the technology is widely considered as a key tool for achieving landmark environmental goals in the European Union and other parts of the world.

“Currently, few people are opting for this mode of transport, because electric cars are expensive, they are limited in range and the service infrastructure needs further expansion,” the press department of the Agriculture Ministry, which oversees environmental questions, told the Budapest Business Journal.

In a classic ‘chicken and egg’ scenario, the muted level of market demand is the main reason behind the limited availability of the necessary infrastructure, like filling stations, which circles back to the low number of cars on the road.

Hungary, with its handful of publicly available filling stations, is far from what the European Union deems adequate.

According to a European Commission’s proposal from early 2013, Hungary should ideally have 7,000 filling terminals by 2020; that is the number deemed sufficient to promote the spread of alternative fuels within the EU. ELECTRIFYING But at least there are attempts: German energy group RWE, the parent of the ELMŰ−ÉMÁSz group announced this January that it will be installing 10 additional filling points above the handful it already has in operation.

The company is optimistic that there will be more of the better−selling cars operating on the roads of the capital, including the most popular model, the Nissan Leaf, and even Tesla models, which represent the peak of the electric car league.

ELMŰ−ÉMÁSz piloted the spread of electric infrastructure by installing the first few nodes, which motorists may use free of charge until the end of 2014. The newly announced charging points will also be fitted with improved technology that could significantly reduce the time a single charge takes.

ELMŰ−ÉMÁSz found that, over the course of a year, demand has notable increased for its stations. In the last quarter of 2013, motorists charged 2,217 kilowatt−hours of energy compared to 148 kWh in the same period of 2012.

The growth is tangible, but in all fairness, it still doesn’t even amount to 100 top−ups a month.

SET TO TAKE OFF That doesn’t mean there isn’t room for growth. In fact, there are projections that the sales of electronic cars will see a huge boom in the coming years.

Technology market data provider ABI Research said in October of 2013 that electric car sales will increase 48% each year until 2020, meaning there will be

IN A CLASSIC ‘CHICKEN AND EGG’ SCENARIO, THE MUTED LEVEL OF MARKET DEMAND IS THE MAIN REASON BEHIND THE LIMITED AVAILABILITY OF THE NECESSARY INFRASTRUCTURE, LIKE FILLING STATIONS, WHICH CIRCLES BACK TO THE LOW NUMBER OF CARS ON THE ROAD

WWW.BBJ.HU

15

3

Budapest Business Journal | April 11 – April 24

FROM THE BOTTOM UP Smart city projects are traditionally understood as high−tech, environment−friendly solutions for urban management: a closed and one−directional info− communication system, usually developed by infotech giants such as IBM and Cisco. Increasingly, however, smart city concepts are being interpreted as open−ended systems in which information flows into two directions.

According to experts interviewed by the Budapest Business Journal, the Hungarian capital mostly embodies the latter.

check on the Internet at what of shipping the product they had ordered was,” Szemerey said as he explained how two−way information exchange works in smart systems. “The community version of this is manifested by the board display of a bus which not only informs the bus driver but also the passengers about a traffic jam,” he added. A further step in this development is ‘crowdsourcing’: when local residents are gathering and supplying information about a particular problem.

Budapest is full of vacant stores, residential spaces and offices. “Through the ‘Rögtön Jövök’ (‘Back in a Minute’) project, we wished to call the attention of decision makers to the fact that vacancy in Budapest has reached dangerous proportions,” Levente Polyák, project manager of Lakatlan (Vacant) told the

As far as the more traditional variety of the smart city is concerned, Budapest can boast hardly any examples of such solutions.

“Strange as it may sound, it is primarily the Municipal Transportation Company (BKK) which shows keen interest in smart city technologies, much keener than the municipal government itself,” Samu Szemerey, urban planner at the Hungarian Center for Contemporary Architecture (KÉK) told the BBJ. Two examples can be quoted for that: Bubi, a brand new public bicycle system, and FUTÁR, a system providing public transportation information to passengers.

“The municipality’s lack of interest can be explained by the fact that Budapest has a two−level system of municipal governance,” Bálint Kádár, associate professor of urban planning at the Budapest Technical University explained to the BBJ. Besides the overall municipal government of the capital city, the individual districts also function as local governments in their own right, possessing significant amounts of autonomy.

This dual system is characterized by a unique division of responsibilities: e.g. while the Budapest municipality is responsible for the development and maintenance of main roads and squares, the districts take care of side streets. As the system of public transportation covers the whole city’s territory, BKK is understandably more receptive to smart city solutions.

“One can only hope that when the battle is over between the Budapest municipality and the individual districts, the mentality toward smart city concepts will change as well. In that case, there will be a chance for Budapest to catch up with Győr,” Kádár remarked with irony; the west Hungarian city has just concluded a strategic agreement with E.ON in order to turn Győr’s energy provision and transportation into a smart infrastructure by 2017, the year when Győr will be home to the European Youth Olympic Games.

FROM CROWDSOURCING TO CROWDFUNDING The bottom−up variety of the smart city gained ground in parallel with the expansion of the Internet. “Amazon’s e−customers could

Photos: Siemens

ANDRÁS ZSÁMBOKI

BBJ. “We started to collect information on the vacant buildings and spaces in Budapest.

Then we realized that it was much better to use an open−ended channel, and we switched to crowdsourcing: we began to rely on the combination of a map and a blog, by which we expect local governments to remedy such situations,” says Polyák alluding to solutions like extra taxes that are levied on long−term vacant properties, or tax breaks that are offered to owners who allow empty properties to be used for social and cultural activities.

COMMUNITY PLANNING In 2010, the longest prefabricated building in Budapest, the so−called Faluház (Blockville) in Óbuda,

underwent thoroughgoing renovation that involved a mixture of community planning and high−tech solutions. “The façade received white, blue, and green mosaic tiling as residents wished to give the building a unique look; at the same time, state−of−the−art solar modules were installed to provide thermal heating,” Kádár explained.

“The revitalization of certain squares in the 8th District, carried out jointly by the district’s municipal government and Rév8, a company majority−owned by the same district government, can be regarded as special Eastern European smart city projects,” Szemerey said.

Mátyás tér and Teleki tér are prominent examples, and a similar project involved

Leonardo Garden in the same district.

The aim was the improvement of the looks and reputation of these open spaces, but revitalization was achieved through participatory planning – a relatively novel practice in Budapest. Újirány Landscape Planning Studio was commissioned by Rév8 to design the new look of the two squares. “Members of the studio organized 12 meetings altogether with local residents,” Gábor Szohr, landscape planner at Újirány told the BBJ. First they sized up the local demands; then they presented their conceptual plan to residents. “When it turned out that the budget did not allow the realization of all the local requirements, we consulted the residents again, asking them what to leave out of the project,” Szohr explained. Teleki tér residents preferred a high−quality fence to be built first, and postponed the playground castle in exchange; they were of the opinion that in such a neighborhood the protection of those parts of the project that had already been completed was of prime importance, while other elements could be postponed in the hope that further funding could be raised later.

The meetings, along with a Facebook page, functioned as the main channels of communication. “The project’s Facebook page was soon joined by the page of the Teleki tér Association, which local residents formed to be able to continue to contribute to the square’s management and ongoing improvement once the renovation is completed in summer 2014.

16

WWW.BBJ.HU

3

Budapest Business Journal | April 11 – April 24

LESS AND LESS LIKE MUMBO JUMBO ‘Sustainability’ is undergoing a substantial change that directs efforts towards easier− to−monitor schemes. A major initiative from the Business Council for Sustainable Development in Hungary is attracting companies to sign up and deliver real results.

LEVENTE HÖRÖMPÖLI-TÓTH

There was a time when business bigwigs loved to issue a press release on the latest sustainability objectives. The PR box was ticked, but nothing normally followed.

Hollow words will not do anymore, however, when dealing with the trendy ‘s’−word. Sustainability requires center stage attention at the executive level or it is gone for good.

HIGHLY RECOMMENDED The Business Council for Sustainable Development in Hungary strives to talk as many corporate leaders as possible into taking the path to action. Its ‘Recommendation for Business Leaders’ has been signed by the top executives of 80 undertakings and business organizations whose combined output makes up nearly one−quarter of Hungary’s GDP. The signatories therefore have a major impact in economic, environmental and social aspects.

“In drawing up the ‘Recommendation’, we had a double aim. We wanted to lay down the principles that rule sustainable corporate operations in the 21st century,” Ida Petrik, director of the BCSDH told the Budapest Business Journal. “We also needed a tool to reach out to senior executives on a wide scale through the idea of sustainability.”

ENVIRONMENT TO THE FORE These efforts aim to widen the scope of potential believers. This year a new working group will be set up to deal with the supply chain. Last year a survey was conducted among those who had signed the ‘Recommendation’ that inquired to what extent, in their opinion, sustainability prevails in the Hungarian business world (for details see chart).

STORY HIGHLIGHTS ■

Sustainability is dealt with either at a strategic corporate level or not at all ■ New initiatives help enhance the follow-up of such efforts

According to the results, from amongst the ruling principles it is environmental aspects that are most widely taken into account.

As an oil and gas company, the MOL Group bears an extra responsibility to meet the relevant long−term requirements.

TRANSPARENT OBJECTIONS Transparency was identified as the least respected aspect of sustainability in the BCSDH study. “In the business sector there are no incentives in this regard,” Petrik pointed out. “In the case of listed companies, expectations are different.

They are required to reveal data not only on their economic activity, but also on their environmental or social footprint.”

Telenor Hungary, another signatory to the BCSDH document, prides itself on promoting transparency values. “Our company was the first mobile provider in

Hungary to join the Corporate Support Forum of Transparency International Hungary, an anticorruption NGO,” Telenor said.

As a result of the cooperation, a practical anticorruption guide has been put together aimed primarily at Hungarian SMEs. The Telenor Ethical Business Award also founded aims to present and promote domestic best practices.

Yet another proof to show that sustainability is being filled with substance gradually.

SUSTAINABILITY FACTORS (%) Survey among the signatory companies to the BCSDH Recommendation on Corporate Sustainability (Percentages indicate the share of business in Hungary that in the opinion of the surveyed signatory companies to the Recommendation put emphasis on a particular sustainability factor)

Strategic approach Responsible management Ethical operations Respect for human values Environmental responsibilities Partnership with stakeholders Transparent operations 0

25

50

75

100

Source: Business Council for Sustainability and Development in Hungary, 2013

“In the field of climate change, our energy efficiency program has the biggest impact through which CO2 emissions went down by 180,000 tons in 2013 on a yearly basis,” MOL said in a statement to the BBJ. “MOL Group also has facilities in regions stricken by water scarcity such as Iraq or Pakistan, where water management plans are drawn up.”

WE WANTED TO LAY DOWN THE PRINCIPLES THAT RULE SUSTAINABLE CORPORATE OPERATIONS IN THE 21ST CENTURY

THE GREAT GREEN LEAP FORWARD For companies that take sustainability seriously enough, the oddly named ‘Green Frog Award’ surely rings a bell.

Firms registered in the CEE region have been able to apply every year for more than a decade to have their transparent sustainability or CRS report assessed by Deloitte Hungary.

This year’s winner was MOL, for the second time now, in a hot contest involving 33 participants. The secret behind the success lies in several factors, as MOL told the BBJ: “The wide scope of activities was demonstrated in a clear and structured manner and the integrated report was certified by an accountancy firm. The fact that Global Reporting Initiative (GRI) standards – the most relevant guidelines for sustainability papers – were applied was also highly appreciated by the jury.”

Frogs are known to be beneficial species. This particular green variety seems to generate benefits on a large scale by pushing big businesses towards long-term, low-impact efficiency.

WWW.BBJ.HU

3

Budapest Business Journal | April 11 – April 24

17

TOWARD NEARLY ZERO ENERGY BUILDINGS Within five years, nearly all residential buildings in Hungary will go though deep retrofitting. The country will also apply zero tolerance towards energy wastage for newly built houses.

ZSÓFIA VÉGH

Due to a recently approved law, the modernization of energy systems of the Hungarian building stock can no longer be postponed. On March 7, the Hungarian government agreed that, as of 2015, newly built buildings financed from European Union or governmental funds must be constructed at a cost− optimum level. This requirement will apply to all newly−built buildings from 2018.

The measure is more than timely.

In Hungary, the heating and cooling of buildings and the making of building materials accounts for half of the country’s energy consumption.

Houses consume double the energy of buildings in Western Europe. Nearly 90% of all the 4.2−4.3 million houses, apartments, and residential buildings in the country are of poor energy efficiency and in need of overhaul.

What cost−optimal renovation means exactly is not clear as the thresholds for insulation, energy output, etc are yet to be stated in the National Energy Strategy. Those figures will be based on the findings of a large−scale survey carried out by the non−profit limited liability company for Quality Control and Innovation in Buildings (ÉMI), an organization which received a mandate from the government to assess buildings’ energy use. ÉMI summarized its findings in the National Building Energy Strategy, which will be open for public debate this summer. (The government was supposed to finalize the strategy last summer. Since it didn’t the European Union initiated an infringement procedure against the country.) Only after the publication of the statistics can reconstruction planning start.

The planned renovation will undoubtedly go so way to reviving the Hungarian construction sector, which has been in a state of hibernation for the past five years. Further deals are expected for Hungarian building companies from 2019 and 2021 – the dates set for the building of nearly zero−energy buildings in the public sector first, and then everywhere else. What constitutes a “nearly zero− energy building” is also in need of clarification once the findings have been made public.

TARGETS OF THE EUROPEAN UNION’S ENERGY STRATEGY • • • • • •

•

A cut of at least 20% in greenhouse gas emissions from all primary energy sources by 2020 A cut of up to 95% in carbon emissions from primary energy sources by 2050, compared to 1990 level A minimum target of 10% for the use of biofuels by 2020.

That the energy supply and generation activities of energy companies should be ‘unbundled’ from their distribution networks to further increase market competition.

Improving energy relations with the EU’s neighbors, including Russia.

The development of a European Strategic Energy Technology Plan to develop technologies in areas including renewable energy, energy conservation, low-energy buildings, fourth generation nuclear reactor, clean coal and carbon capture.

Developing an Africa-Europe Energy partnership, to help Africa ‘leap-frog’ to low-carbon technologies and to help develop the continent as a sustainable energy supplier.

Source: European Commission

BBJ

4 Socialite HYPE ON TWO WHEELS The winds of bike sharing change have finally reached the Hungarian capital. The scale of the service should be enough to help spread environmental awareness, and though it will not be cheap, there ought to be a good chance for expansion in due time.

LEVENTE HÖRÖMPÖLI-TÓTH

Green−minded folks have reasons to cheer.

Public bikes are finally available in Budapest, as in some 700 other cities worldwide. The scale of the service still has a long way to go to reach the record number of 90,000 cycles in Wuhan, China or the largest European public bicycle farm in Paris with some 20,000 pieces.

“Installing 75 docking stations and 1,100 bikes should be enough to start with. The capital will be able to soak up a lot more, around 10,000 would be needed,” János László, president of the Hungarian Cyclist Club, told the Budapest Business Journal.

STORY HIGHLIGHTS ■

Budapest joins the community of cities with a bike sharing service, engaging 1,100 cycles ■ High hopes exist for expansion, but pricing and lack of suitable roads may be an obstacle

899 million. The EU covered some 85% of the budget, with the rest financed by city hall.

CYCLISTS’ PATRON SAINT AT WORK But keeping the system running won’t cost peanuts, either, with the yearly budget set

at HUF 250 mln. An agreement with MOL, with lower charges are normally operated by the leading national oil company, has helped companies running public space advertising overcome that financial bottleneck. It not which results in big revenues from that only provided about half of the costs, but advertisement. Schemes with municipality also agreed that revenues from the scheme ownership such as in London or New York (estimated at HUF 70 mln per year) will go to apply higher rates even if a name sponsor is the municipality as well. involved,” BKK explained.

It is not the first time cyclists have The scale of the service is also an issue. “In received support from MOL. They are London, where 10,000 pubic bikes are in use, assisted at 126 of its gas stations with Barclay’s covers 17% of the costs which is a lot repair kits and spare parts. Bike rental at less than our share of burden,” MOL stressed certain summer festivals is also free thanks in a statement to the BBJ. to the firm’s commitment.

Engaging a major sponsor is nothing new in BITTERSWEET SYMPHONY the realm of bike sharing, but financial models The path is being smoothed for the launch do have an impact on pricing. “Systems by kick−off discounts and free trial periods.

STEP ONE, AFTER ALL The main purpose is to get the scheme going, which will hopefully then attract further development. “The direct benefit will be changing traffic habits and promoting cycling as such,” László added. Accordingly, the Budapest public transport authority BKK projects the annual number of users at 12,000. “Relieving the burden of car traffic and reducing the pressure on overcrowded public transport vehicles are both our priority,” it said in a statement to the BBJ. The project is being called Bubi (for Budapest Bicycle), and has cost HUF

BUBI’S BODY AND SOUL ADVERTISEMENT

Organ Concerts in Saint Stephen’s Basilica of Budapest The sound of the world-famous historic organ of the Basilica will only be heard at these concerts!

The Cathedral Organ Concerts and the Organ Concerts is organized in Saint Stephen’s Basilica of Budapest on Monday 28. The events of the Cathedral Organ Concerts begin at 5 p.m., with the exception of October when the concerts start at 7 p.m. Organ concerts will be organised on Fridays 11-25, at 8 p.m.

In addition to the organists of the Basilica the concerts feature singers or instrumental musicians who will present the organ works and most famous church arias of Albinoni, Caccini, Bach, Mozart, Schubert, Gounod, Bizet, Rachmaninoff, Cesar Franck and Ferenc Liszt. · www.organconcert.hu

J. S. Bach: Johannes passion, Downtown City Parish Church. 2014 April 15, 7:30 p.m.

BKK and MOL created the Bubi system’s framework, but other actors are behind the body and soul of the bikes themselves. Csepel Zrt produces the bicycles, thus making them a success story for local development. T-Systems Zrt delivered the IT solutions responsible for system integration and data communication. Nextbike, a main supplier, in turn supported T-Systems and together they added an international dimension.

The members of the consortium charged with executing the bikesharing project came up with several innovative ideas. Docking stations operate using renewable energy, namely solar power, and almost every second station will have large, touch-screen terminals.

T-Systems told the BBJ, “A high quality mobile application will be available that provides real-time information on the number of unoccupied parking slots and available bikes, the balance of user credit or the location of the nearest docking station.”

WWW.BBJ.HU

4 Socialite

19

Photos: BKK

Budapest Business Journal | April 11 – April 24

Permanent discounts connected to public transport passes are also at play.

Critics still target Bubi’s pricing, however.

The two−pillar system is based on access and usage charges (see chart). The first 30 minute−period of use is advertised as free since the whole idea is to create a situation where there are bikes constantly available and they are not used for, say, day−long excursions. Yet, the yearly charge for access only comes to HUF 18,900, and rides of longer than 30 minutes carry extra fees. Spur− of−the moment users will have to stump up a deposit of HUF 25,000 even if they wish to jump on the saddle only once.

By BKK’s own assessment, the rates reflect the global average for municipality ownership−based schemes. It is telling that

MOL has apparently told BKK “to reconsider Bubi charges”. Notwithstanding, the transport authority is ready to alter the rate structure or extend the launch−related discounts should the statistics require it.

THAT EMOTIONAL BONDAGE Another bittersweet factor is that not enough city roads have been adapted to take heavier bike traffic. “An engaging advertising campaign would have been crucial prior to the launch that would have given extra impetus to it,” László noted.

Regardless of the lack of inspirational promotion, the system’s three−fold expansion is in the works. And if cyclists do have a 10% share of Budapest traffic by 2020, as BKK projects, few will complain.

NO ZERO SUM GAME A recent visit by European Union officials, during which they cycled along the Danube, shed light on the obvious: whereas biking infrastructure generates fat money in the West, Hungary lags behind in living up to its potential.

More concrete measures have been identified in the National Cyclist Concept drafted by relevant NGOs, with special respect to the upcoming EU budgetary period 2014-2020.

“Our country could be a top destination, we have the right features,” János László, president of the Hungarian Cyclist Club said. “There is a need for development that grants biking tourism priority status. The reality is, however, that half-hearted measures rule the day.”

Two major aspects must be improved. “Within settlements, integrated traffic systems should be created where every road and junction should be assessed whether they are suitable for cycling; if they are not, they need to be altered accordingly. The other task is to develop a network of cycling roads that serves tourism as well,” László said. Such a fullfledged approach would require a HUF 120 billion investment, but that would be compensated by revenues of up to HUF 150 billion, as estimated by National Cyclist Concept. Not a bad deal after all.

If you are into riding your bike, check these web sites to help plan your next trip. http://www.kerekparos.com/ http://geologika.hu/bicikli_hu

ADVERTISEMENT

THE world oF

Toulouse-

Lautrec

MUSEUM OF FINE ARTS, BUDAPEST 30 APRIL – 24 AUGUST 2014

WWW.MFAB.HU

Henri de Toulouse-Lautrec: Divan Japonais, 1893 © Museum of Fine Arts, Budapest

20

WWW.BBJ.HU

4 Socialite

Budapest Business Journal | April 11 – April 24

RESTAURANT REVIEW

A BIT OF JAPAN Being close to the business district, Tokio is a cool choice for business lunches or casual meetings. In the evenings, as the neighborhood turns into one of the most popular entertainment and clubbing areas in Budapest, Tokio becomes a perfect location for eating out before the parties start.

Tokio is a cool, fancy, Asian fusion restaurant and bar. The menu is a mix of the most popular Japanese and Thai dishes. The neon−like decoration reminded us being in a Japanese movie scene, and the well dressed, often good− looking clientele made us feel that this is one of the most fancy spots in town.

Our table was next to the window, looking at the beautiful Danube panorama. We could watch the passers by, and they also peeped in, so quite often we found ourselves saying ‘hello’ to someone. We started our dinner with hot salmon chips: a delicious, crispy snack, and a must try. The recipe falls under the ‘waste not, want not’ file, but it results in a treat all will enjoy. Basically crispy− ADVERTISEMENT

fried salmon skin is like salmon bacon, or salmon rinds, and it is seasoned with chili powder.

We also had a salad called Reddish3, which is a great spring salad made of three kinds of reddish, black sesame and edamame beans seasoned with a wasabi−yuzu and soy sauce dressing.

We chose three kinds of rolls also as a starter: Sunshine, Hana maki and Krush.

Sunshine was filled with salmon, tuna, sea bass, avocado and it was fried in tempura dough. Hana maki came with marinated eels, salmon and cucumbers, and was topped with salmon caviar.

Krush was a bit tricky. It was made of shrimp tempura, tuna, salmon teriyaki, avocado, shallots, Japanese mayo, very hot cheese sauce, tempura crust and masago caviar.

For the main course we ordered two dishes: Suzuki grill and Samui. Suzuki grill is a light and nicely composed dish with a slice of grilled sea bass, sweet potato mash and wasabi spinach sauce.

The great quality fish was succulent and juicy; the sides were modest and harmonic. Samui, a Thai wok dish is made of baby squid seasoned with garlic, ginger, chili and cilantro. It was jolly colorful, and had a balanced taste built up of some sweet parts, some hot, some

salty and some sour. We enjoyed both dishes a lot.

For dessert we took our waitress’ advise and ordered a portion of Dragon ball: small cottage cheese dumplings with black sesame and white chocolate mousse with fresh marachuya; and something called Kango, which is a mango mousse with pistachio, pomegranate and black sesame. The

cottage cheese was maybe a bit too heavy after a rich dinner like ours, but Kango was light and exotic, a perfect finish of the dinner. RATATOUILLE

TOKIO

1051 Budapest, Széchenyi István tér 7−8.

Tel: +361 801 9862, +36 70 333 2176 www.tokiobudapest.com

22

WWW.BBJ.HU

4 Socialite

Budapest Business Journal | April 11 – April 24

WHO'S NEWS

Name PÉTER DÁVID Current company/position NOGUCHI PORTER NOVELLI/ SENIOR CONSULTANT

Name GYÖRGYI HERENYIK Current company/position INVITEL/CORPORATE MARKETING DIRECTOR

Do you know someone on the move?

Send information to research@bbj.hu

Prior to taking up his new position, Dávid was with the American Chamber of Commerce in Hungary (AmCham) for five years as CEO of the organization.

Before that, he worked for Philip Morris International for a decade in corporate affairs, both in Hungary as director and earlier at the company’s global headquarters in Lausanne as regional manager for Europe.

Herenyik has been marketing director at the corporate and wholesale business unit of Invitel since January 2014. Before joining the company, she was with Vodafone for three years and worked as senior leader of the postpaid segment of the consumer business unit. In the preceding seven years, she worked at Telenor and was in charge of marketing activities for small-, medium- and large-sized companies.

Name ZSOLT SZELECKI Current company/position PWC LONDON/ HEAD OF HR CONSULTING BUSINESS

Name DR. BÍBORKA JÓJÁRT Current company/position NOERR BUDAPEST/ HEAD OF CORPORATE, LIFE SCIENCES PRACTICE GROUPS

Szelecki, a partner at PwC, and leader of the firm’s HR consulting business in Central Eastern Europe (CEE), will be pursuing his career with PwC London. He will continue to coordinate the CEE HR consulting network, but his main focus will become serving global financial clients based in London, particularly enhancing digital organizational transformation. On top of this, he will serve as the global methodology coordinator for the PwC Organization & Change competency group.

The international law office, present in Hungary for more than 24 years, has been strengthened with the appointment of Jójárt as the head of corporate as well as the life sciences practice group at Noerr Budapest, and she is also a member of the employment and labor team. She was described as a “well-recognized expert” in the field of Life Sciences by Chambers Europe.

Name ZOLTÁN LINCZMAYER Current company/position SKANSKA PROPERTY HUNGARY/MANAGING DIRECTOR

Linczmayer has been the managing director of Skanska Property Hungary since April 1. In his previous position as project manager at Skanska, he was responsible for finalizing the award winning Green House project in Budapest. He has more than 15 years of experience in the real-estate industry including construction, project management, property management and business development. He holds an MSc degree in architecture and an MBA in economics. He is a member of the Royal Institution of Chartered Surveyors (RICS).

Ertl has been chairman-CEO of the holding since April 1, and succeeds Péter Kostevc, the founder and majority owner of Quantis Group, in the position. Ertl joined the group in the summer of 2013 as deputy CEO. Previously, he was CEO of Netrisk.hu Zrt, and also member of the board at Uniqua Biztosító Zrt.

Name PÁL ERTL Current company/position QUANTIS HOLDING/ CHARIMAN-CEO

ADVERTISEMENT

DR. ROSE PRIVATE HOSPITAL

DR. ROSE ORTHOPEDIC CENTER

DR. ROSE OBSTETRICS

DR. ROSE BUDAPEST PLASTIC INSTITUTE

DR. ROSE CORPORATE HEALTH CARE

DR.ROSE | CORPORATE HEALTH CARE

Annual Card Packages Annual rd Pa ackages HealthCaascreenings Health scrreenings Occupational health care Occupatio onal health care Group health insurance Group hea alth in nsurance

1051 BUDAPEST SZÉCHENYI TÉR 7/8 TEL +36 1 377 6737 WWW.DRROSE.HU

We await corporate customers in a pleasant, modern environment at our Corporate Health Care department.

6D NƤDQ NBBTO@SHNM@K GD@KSG B@QD HM KHMD VHSG SGD CDL@MCR NE SGD ƥQL NTQ RDQUHBDR HMBKTCD @MMT@K B@QC packages, health screenings and group health insurance.

WWW.BBJ.HU

4 Socialite

Budapest Business Journal | April 11 – April 24

OUT OF THE OFFICE The BBJ gets personal

23

At the steering wheel MY FIRST CAR...

My first car was a VW Golf 1, and I simply liked it because I never had a car of my own before.

TOP 3 THINGS TO CONSIDER ABOUT A CAR...

Safety, intuitive driving features and seat comfort.

WHAT IS YOUR MOST MARKED CHARACTERISTIC? I am open to new ideas, and like to take different perspectives into consideration.

WHAT KIND OF JOB DID YOU DREAM OF WHEN YOU WERE A CHILD? I wanted to travel the world, and because I always loved animals, I wanted to be a vet.

CV Joris Huijsmans has been CEO of Heineken Hungary since July 2013. Before his current assignment, he worked as integration director at Asia Pacific Breweries in 2012 and 2013. In the preceding two and a half years, he was senior vice president in charge of trade marketing and trade at Cuauhtémoc Moctezuma S.A de C.V. in Mexico. He first joined Heineken International B.V. in 2000 as an in−house lawyer, and later worked as corporate internal services director, and national sales and distribution director. Apart from his native Dutch, he speaks German, English, French and Spanish. He studied civil law at Leiden University and got his master’s degree in crisis management in 1997.

WHAT DO YOU CONSIDER YOUR GREATEST ACHIEVEMENT? At a professional level I am very proud to manage a company that brews and markets Hungary’s number one beer, Soproni. At a more personal level, it always feels great when my colleagues contact me with their problems and issues because I can feel the trust they place in me.

ADVERTISEMENT

MOST ADMIRED FEATURES OF THE TEST CAR...

The design is very nice and it is very spacious.

MY GENERAL IMPRESSIONS OF THE TEST CAR...

WHAT IS YOUR GREATEST REGRET? I have learned through experience not to have regrets.

I took it to Lake Balaton where I went with friends

WHAT IS YOUR GREATEST FEAR? That I might not take every opportunity to the maximum.

The spacious interior and the comfortable seats

WHAT IS THE MOST EXTRAVAGANT THING YOU’VE DONE IN YOUR LIFE? Flying Concorde was something I always felt very extravagant.

friendly I have ever seen, though.

WHAT ACTIVITIES HELP YOU TO COPE WITH STRESS? I work out every day and practice meditation. It helps me work the stress out of my body and mind.

WHAT IS YOUR MOTTO? The first lines of a Marianne Williamson poem: Our greatest fear is not that we are inadequate but that we are powerful beyond measure.

WHAT WOULD YOU DO WITH €1 MILLION? I would create a foundation to offer education to poor children. I believe that education is the only way to grow.

WHAT IS YOUR FAVORITE GADGET? My iPad. HOW WOULD YOUR DREAM DINNER PARTY LOOK LIKE? (OCCASION, VENUE, GUESTS, MENU, MUSIC OR WHATEVER IS IMPORTANT TO YOU) A nice summer evening on the terrace of my house with friends, home−made Asian food and a good Heineken.

so I had a chance to try it on and off road. made it a great choice for such an excursion.

The onboard computer was not the most user

The test car was a Volvo XC60.

WHAT IS IT YOUR DREAM TO LIVE TO SEE? There is so much to see in this world; right now I would like to see every corner of Hungary.

WHAT THREE THINGS WOULD YOU TAKE WITH YOU TO A DESERT ISLAND? My dogs, Osho’s Unio Mystica and The Köln Concert from Keith Jarrett.

WHICH LIVING OR FICTIONAL PEOPLE DO YOU MOST DESPISE? I try not to despise anyone, as it is a waste of energy.

Sponsored by: volvogaleria.hu