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Budapest a flashpoint for refugee crisis As the population of refugees in Hungary ballooned, and a botched effort at human trafficking led to 71 deaths, leaders in this country and Europe struggled to address the rapidly changing situation.

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China sneezes, but Hungary still healthy While the wild ride in global share prices had analysts warning of emerging market meltdowns, it would appear, at least so far, that they were not talking about this corner of the world.

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Erste in Hungary buys Citibank’s retail trade

A summer of major transactions

Women still the minority in IT world

Citi will shift its focus to corporate customers after the deal. Analysts in the industry say Erste faces a challenge in keeping up the same service levels as Citi was able to maintain.

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Morgan Stanley acquired the AEW portfolio in the biggest property deal of a very active season that had observers ready to declare Hungary’s real estate market nearly recovered from the shock of 2008.

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The women in charge of Microsoft, Cisco and Google in Hungary say that the industry cannot afford to lose out on talent by maintaining the gender imbalance that has dominated in Hungary .

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Budapest a flashpoint for refugee crisis As the population of refugees in Hungary ballooned, and a botched effort at human trafficking led to 71 deaths, leaders in this country and Europe struggled to address the rapidly changing situation.

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China sneezes, but Hungary still healthy While the wild ride in global share prices had analysts warning of emerging market meltdowns, it would appear, at least so far, that they were not talking about this corner of the world.

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Young minds brighten startup scene

Tibor Rékasi, CEO of T−Systems Hungary, talks about changes in Hungary’s IT sector in our special report, which includes a look at the drive to increase programming talent. 19

Hungary is a hub for young entrepreneurs, who are making waves in IT with their innovative ideas.

We give snapshots of some of the country’s up-and-coming leaders and their new ideas.

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Erste in Hungary buys Citibank’s retail trade

A summer of major transactions

Women still the minority in IT world

Citi will shift its focus to corporate customers after the deal. Analysts in the industry say Erste faces a challenge in keeping up the same service levels as Citi was able to maintain.

9

Morgan Stanley acquired the AEW portfolio in the biggest property deal of a very active season that had observers ready to declare Hungary’s real estate market nearly recovered from the shock of 2008.

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The women in charge of Microsoft, Cisco and Google in Hungary say that the industry cannot afford to lose out on talent by maintaining the gender imbalance that has dominated in Hungary .

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Fence the wrong response to tragedy It is a horrible tragedy that 71 refugees recently died in a dangerous attempt to flee Hungary in the back of a truck, but it was only one part of a tragedy that is unfolding in Budapest’s train stations, and all across Europe. Tens of thousands of people who are desperate to leave their homes, taking little or nothing with them, are pouring over the border into our country. Understandably the mass global migration, with a record number of refugees on the move this year, caught all Europeans off guard, and answers are not easy. For many generous Hungarians, the response has been obvious: Volunteers have been flocking to the train stations to offer food, clothing and assistance.

In contrast, the Hungarian government’s main response has been fear mongering and building a fence along the Serbian border. This is a cynical attempt by the ruling Fidesz party to use this tragedy as a way to increase its popular support.

Although it is costing us an estimated HUF 6.6 billion, the fence is not very effective as a barrier. Refugees can easily pass through, and will probably continue to do so even if it is reinforced. From the beginning, the real purpose of the fence is its public relations value.

The fence is the government’s way of saying that Brussels is failing to stop the migrants and that only the Hungarian leadership is strong enough to do the job. It says that outsiders endanger us, and that the hundreds

of thousands of families fleeing war pose a terrorist threat. It says we should be afraid and should look to our leadership to protect us. It says that the Fidesz party hates foreigners as much as Jobbik, the nationalist party that is currently number two in the polls.

The fence is not the only way the government seeks to strengthen its message of fear and hatred. A September 1 report in The Guardian reveals that Hungary’s government−appointed Media Authority (MTVA) has instructed public media to refrain from using images of children, apparently because such images might humanize the refugees and make them appear sympathetic.

Helping refugees is a challenge, one that requires a unified, humane response from all of Europe. This country should not be forced to face the burden alone, and clearly Hungary has been thrown into a difficult situation as the main entry for refugees coming into the European Union. The solution needs to include support from the EU. It also needs to involve a way to make room for these people, to give them the sanctuary they need, and to make it possible for them to stay, build new lives in Europe and contribute to our societies.

The government’s use of this tragedy to foment fear is wrong. We need to send a message to the government that Hungary is full of caring people who are not afraid of their fellow human beings – and that cynical fear mongering is the wrong approach.

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Above is the facade of Keleti Railway Station, photographed shortly after 1890. On the left, refugees sit in front of Keleti station on September 2, waiting for an opportunity to board trains heading to Germany. The Hungarian Police would not let them do so. See story on Page 6.

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China jitters called minor threat here While there have been concerns about emerging market investment, Hungary is not likely to be heavily impacted, analysts say.

Budapest shares seen as insulated

BBJ STAFF

The fears about slowing growth in China seem to be abating somewhat, and by the beginning of September a semblance of order began returning to many world markets. But the going wisdom was that the emerging markets, a category that includes Hungary, were in a dubious position.

Local analysts told the Budapest Business Journal that they were not concerned, as the emerging markets that are in danger are those like Brazil, which has flourished by selling oil and other natural resources to meet China’s seemingly bottomless demand. Barring further external shocks, Hungary should weather the storm well, they said.

“The CEE region, including Hungary, can be thought of as a ‘safe haven’ among emerging market countries,” said Gergely Ürmössy, chief economist at Erste Bank Hungary.

Nonetheless, the most important opinion is probably that of Franklin− Templeton, the emerging market fund that has traditionally purchased a lot of Hungary’s bonds. Not surprisingly, it only made general remarks and would not discuss this specific market, but there are reasons to be optimistic about what that mutual fund will do.

Franklin−Templeton and other mutual funds that buy bonds have become especially important since the financial crisis of 2008. From that time the banks, which tend to be more heavily invested in their host countries and slower to leave, have reduced their role in emerging markets. Flexible bond funds like Franklin− Templeton now buy more of the debt in these markets, which is fine when all goes well. But if all investors suddenly lost faith and decided to cash out their shares at the same time, as happened to some banks in 2008, the mutual funds would be forced to sell, driving down the value of state bonds and making it harder for governments to sell more new debt.

Foreign firms pulling out already Asked what their ultimate plans are for Hungary, Franklin−Templeton’s Szabolcs Ercsey, sales manager for Hungary, referred our reporter to a general statement by the global firm, which says in part, “In light of the concerns

The Budapest Stock Exchange, shown above, has been weathering the global roller-coaster ride reasonably well, keeping pace with most European exchanges. As András Nagy, analyst of Erste Bank Hungary notes, Hungary’s blue chips are relatively insulated. ‘The majority of Hungarian companies listed on the BSE are only indirectly affected by the worries in China. Only Richter is directly linked to China: Based on 2014 data, 3.8% of its revenues came from China,’ Nagy said. ‘MOL’s performance is indirectly affected by the price of oil, which decreases the result of upstream activity. OTP and MTel are only affected by the global investor mood. As the Hungarian stock market is only indirectly affected, only a moderate negative impact is expected.’

about China, as well as potential rising interest rates in the United States, investor fears regarding emerging markets have resurfaced, although we believe that certain countries have been indiscriminately punished.”

The statement explains that the economies that are most at risk are those dependent on selling their exports to China. While China is one of the biggest importers to Hungary, it is not even among the top ten markets when it comes to buying from this country.

Germany buys roughly a quarter of Hungary’s goods, with other countries playing a lesser role.

As Gergely Pállfy, an analyst at Raiffeisen notes, Franklin−Templeton and other foreign funds have already been selling their holdings of Hungarian debt for some time.

“The number of bonds owned by foreign investors is on the decline,” he said, noting that in August it was listed at only HUF 4.134 trillion, “which is a low point in the past three years”.

Back in May, the head of Hungary’s Government Debt Management Agency announced on television that, in the first quarter of this year, Franklin−Templeton had sold roughly 20% of its Hungarian bonds.

“The reason for such a tendency cannot directly be the slowing of the Chinese economy,” Pállfy said.

According to analysts, more of the debt is being held by Hungarians, which brings a measure of stability.

“Non−resident investors are mainly present on the long−end of the yield curve, mostly over the ten−year maturity level,” Ürmössy noted. He added that the big foreign funds mostly seem to be

holding on to their long−term debt and are simply letting short−term debt expire without reinvesting.

This sentiment was echoed by Erste Hungary analyst András Nagy, who said: “We are not expecting a sales wave to happen, but we believe that the number of Hungarian bonds owned by foreigners will decrease as the upcoming expired bonds will not be renewed.”

In fact, the analysts said, barring more major shocks to the worldwide economy, there are reasons to be upbeat about Hungary’s economy.

“The probability of a credit rating upgrade back to investment grade is quite high. We expect such an upgrade sometime earliest in 1Q16 which may also help the domestic bond market to become more resilient against external shocks,” Ürmössy said.

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Budapest Business Journal | Sept 04 – Sept 17, 2015

trillion at the end of June, up 1% from the end of 2014. Stock of loans edged down about 3.5% to HUF 15.256 tln during the period. Stock of deposits decreased 2.3% to HUF 15.583 tln. The ratio of nonperforming loans – those past 90 days due – to gross loans fell to 16.6% from 19.4% in the retail sector and grew to 13.9% from 13.8% in the corporate sector from the end of 2014 to the end of June 2015. The NPL ratio was 16.1% for the retail sector and 13.7% in the corporate sector at the end of 2015 Q1. MNB said the lower ratio for the retail sector in Q1 could be attributed to a one-off effect of converting FX loans to forints, which was proven to be unsustainable.

Arbitration body mediating 10,000 complaints over FX loans

Photo: MTI / Zoltán Máthé

Schoolʼs open President János Áder is the guest speaker for the school opening ceremony at the Budapest Technical University (Műszaki Egyetem) on September 1, the day when all levels of school began in the city. The university is known for producing the engineers who have helped to build Hungaryʼs reputation as a center for research and development.

NEWS IN BRIEF Varga supports tax authority in becoming state secretariat

Hungarian banks achieve HUF 155 bln pre-tax profit in H1

Speaking at a press conference on August 29, Hungary’s Minister for National Economy Mihály Varga confirmed earlier reports that his ministry supports the idea of establishing an independent state secretariat for tax affairs, Hungarian news agency MTI reported. Ruling Fideszfriendly economic daily Napi Gazdaság reported last week that Hungary’s National Tax and Customs Authority (NAV) could be transformed into a state secretariat and operated under the aegis of a ministry. Varga said that he is planning to hand in a proposal to Prime Minister Viktor Orbán on whether to establish a state secretariat within the ministry. The economy minister noted that all European countries have tax state secretariats that operate independently within ministries.

The minister added that there was already a candidate in place to head the secretariat, however, when asked about press speculation as to whether András Tállai was that person, the minister gave an evasive answer, MTI reported.

Hungarian credit institutions had a combined pre-tax profit of HUF 155 billion in the first half of 2015 compared to a HUF 294.1 bln loss in the same period last year, fresh data released by the National Bank of Hungary (MNB) on August 28 reveals, according to Hungarian news agency MTI. Interest revenue of the sector was down 20.7% to HUF 380.7 bln in the first six months.

Revenue from commissions and fees grew 7% to HUF 236.6 bln. Operating costs were down about 0.5% at HUF 334.4 bln. In H1 there were significant changes in provisions and one-off items for lenders because of the program mandating conversion of FX mortgage loans to forints. Write-offs and provisions resulted in a HUF 468 bln burden in the first half of 2014, but the use of these provisions gave HUF 547.1 bln extra income in H1 2015. This was offset by extraordinary losses jumping from HUF 22.3 bln to HUF 530.6 bln. Lenders had combined total assets of HUF 32.778

About 10,000 cases related to settlement of borrowers’ relief have been brought before the Financial Arbitration Body for mediation, Hungarian economy daily Napi Gazdaság reported. Approximately 1,500 of the cases have already been settled, the body’s spokesperson, Tünde Kardos-Nagy, told the paper. Borrowers who believe their lenders failed to compensate them sufficiently for overcharges in foreign exchange loans may bring their cases to the board.

KSH: Hungary’s PPI up 0.3% in July Industrial producer prices in Hungary saw a year-on-year growth of 0.3% in July, with domestic industrial sales prices falling 1.8% and export prices rising 1.5%, Hungary’s Central Statistical Office (KSH) reported on August 31.

In y.o.y. terms, factory gate prices in the manufacturing sector edged up 0.7%, prices of the transport equipment segment inched up 0.3%, and prices in the computer, electronic and optical products segment rose 5%, KSH reported.

Prices in the food, beverages and tobacco segment fell 1.8%, while prices in the gas, electricity and steam supply segment were down 1.6%, KSH added. In month-on-month terms, producer prices saw a decrease of 0.7% as domestic prices edged down 0.5% and export prices inched down 0.7%, data by KSH reveals.

Producer prices in the manufacturing sector edged down 0.8%, prices in the transport equipment segment fell 1.4%, and prices in the computer, electronic and optical products segment were down 0.6%, KSH reported. Prices in the food, beverages and tobacco segment edged up 0.2%, prices in the gas, electricity and steam supply segment inched up 0.3% in a month, the KSH report added.

KSH: Investment volume up 5.7% in Q2 in Hungary Hungary’s Investment volume saw a year-on-year rise of 5.7% in the second quarter of this year after falling 4.5% in the first quarter, with investments amounting to HUF 1.287 trillion at current prices, in absolute terms, Hungary’s Central Statistical Office said on August 31. Data by KSH suggest that construction investments grew by 10.1% and investments in machinery, equipment and vehicles were up by 0.5%. The volume of investments in transportation and storage rose by 45%, due to significant growth in railway and motorway construction, city transport

networks as well as vehicle fleets, KSH said. Investments increased significantly in electricity, gas and steam supply by 37%, water supply, sewerage and waste management by 25% and education by 21%. Investment performance was 15.3% higher in public administration and defense as well as compulsory social security, while investments in manufacturing, accounting for onequarter of investments, were reduced by 7.1%, KSH said. Of the sections representing relatively low shares, investments were substantially reduced in agriculture by 29%, financial and insurance activities by 22%, professional, scientific and technical activities by 21% as well as wholesale and retail trade by 7.2%.

Property investment in Hungary higher in Q2 than in last two years The European Industrial and Logistics market experienced record levels of investment in Q2 2015 with the total volume reaching €6.1 billion and more transactions taking place in Hungary in the first half of 2015 than in the past couple of years, according to a press release issued by global real estate advisor CBRE. “The demand has also increased for empty buildings,” says Gergely Baka, head of industrial agency at CBRE Budapest. “In our experience, the ‘Funding for Growth Program’ of the Hungarian National Bank also improved the enthusiasm for real estate investments by small- and mediumsized enterprises. The types of most sought-after properties are diverse: City logistics parks, big box buildings, as well as individual production facilities,” says Baka, adding, “We hope that trend continues and the demand will increase according to our expectations.”

Banks expect 40,000 borrowers to file for personal bankruptcy Approximately 25,000 troubled borrowers could take advantage of Hungary’s new personal bankruptcy law in the short-term, and the legislation could affect some 40,000 families in the long-term, according to top officials of the Hungarian Banking Association, Hungarian news agency MTI reported.

Levente Kovács, the association’s chief secretary, said the introduction of personal bankruptcy had been “hurried and unduly substantiated”, but he added that the banking association was committed to continuing its cooperation with the government and had taken an active role in establishing the framework for personal bankruptcy in Hungary. Kovács said it could only be hoped that the system would function well considering the tight deadline to prepare for its introduction, and he conceded that changes might have to be made in the future. András Becsei, the association’s deputy head, said the body supports the concept of personal bankruptcy, citing several international examples of cooperation between clients and creditors. Parliament approved legislation introducing personal bankruptcy late in June. The personal bankruptcy rules will come into force from September 1, 2015 for Hungarians whose homes could be repossessed.

The rules will become universal from October 1, 2016.

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News 05

Budapest Business Journal | Sept 04 – Sept 17, 2015

Jobless numbers may be too upbeat The government announced the best employment figures in 23 years, but some of the progress may be due to changes in the method for counting. Analysts say there is still room for improvement in hiring.

If the 222,000 public workers and 111,000 Hungarians working abroad are not counted, Hungary saw 3.890 million employed in the May-July period, which is way below the data measured in the same period of the last pre-crisis year, 2006.

Growth outlook less rosy

ZSÓFIA CZIFRA

The last days of summer saw quite good macro data, including employment figures, investment data and foreign trade balance. These should, however, be taken with a pinch of salt: The nearly quarter−century high employment figures include public workers and those working abroad, and investment data also shows a mixed picture.

Still, the country could boast a record low unemployment rate and record high employment, according to the latest figures released by the Central Statistics Office. Employment was recorded at a 23−year high between May and July this year, paired with an 11−year−low unemployment rate of 6.8%.

The number of people in employment has been above the four million mark for one−and−a−half years in Hungary, the Ministry for National Economy noted in a press release. In May−July 2015, the number of those aged 15−74 years in employment grew by 139,000, to 4,224,000 year−on−year. The number of people in employment is more than 500,000 higher than in 2010, the ministry noted.

The unemployment rate also declined further, to 6.8%. The number of unemployed averaged 305,800 in May−July this year, while the number of employed averaged 4,223,800. The employment rate of those aged 15−24 years was up by 2.5 percentage points, to 25.5%, and thus the number of people with a job in this age group totaled 281,000.

Worker’s at ContiTech Fluid Automotive Kft. In Makó on September 2. ContiTech recently invested HUF 5 billion in its facilities in Makó and Nyíregyházá, with HUF 1.5 bln in government support. The facilities contribute to the economy by providing employment for roughly 2,000 workers.

There were 3,009,600 economically inactive Hungarians – those neither employed nor seeking jobs – in the age group during the period, down from 3,132,900 a year earlier. At the same time, the activity rate rose to 60.1% from 58.6%.

More time spent looking for work In spite of the favorable figures and the increasing number of public workers, the average time spent looking for work was 19.3 months, up from 18.2; 48.2% of those unemployed had been seeking work for one year or more.

Takarékbank analyst András Oszlay thinks the unemployment rate could improve further in the second half of 2015, falling close to 6% by the fourth quarter and averaging 6.8% as

against 7.7% in 2014. He attributed the dynamic improvement half and half to strengthening economic performance and to active employment policy measures such as the public work schemes. Vivien Barczel of Erste Bank said the jobless rate could fall to 6.5−6.6% by the end of the year and expects an average unemployment rate of 7% in 2015.

However, it is important to note that if the 222,000 public workers and 111,000 Hungarians working abroad are not counted in the working scheme, Hungary saw employment of 3.890 million in May−July, which is way below the data measured in the same period of the last pre−crisis year, 2006, when 3.935 million people were employed. Also, the population has declined by 178,000 in the age group of 15−74 years.

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The slow down of the Hungarian economy that started in the second quarter of 2015 will continue, GKI Economic Research Institute predicts in its latest forecast. After 3.6% growth in 2014, the figure will be 2.7% in 2015 and around 2% in 2016, mainly due to the stagnation or decline of investments. In addition, uncertainties are increasing in the world economy as well. In the second quarter of 2015 both the general government deficit and the government debt increased.

However, the external balance was favorable, and deflation was over, the think-tank noted in its prognosis.

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Budapest Business Journal | Sept 04 – Sept 17, 2015

Photo: MTI/ Sándor Ujvári

Four arraigned in deaths of 71 refugees

Two of the suspects being taken to court on Saturday.

CHRISTIAN KESZTHELYI

Four men, arrested in connection with the death of 71 refugees found in the back of a truck that apparently traveled from Hungary and was abandoned in Austria, could each be sentenced to 16 years in prison, a spokesman for the court in the central−Hungarian city of Kecskemét said on August 29. Murder charges could add to that penalty.

The men, three Bulgarians, aged 29, 30 and 50, and an Afghan, aged 28, were arraigned in Kecskemét court on Saturday and are facing charges of human trafficking, torture and participating in organized crime, said Ferenc Bicskei, head of the court in Kecskemét, according to the Wall Street Journal. The men, who are not yet facing charges of manslaughter because the details of the deaths are still being determined, are to be held for 30 days while investigators build their case. By law, they cannot be named until they are sentenced.

The truck, which had Hungarian license plates, was found parked on the side of the A4 highway, near Pandorf, Austria, on August 27. Austrian officials are cooperating with their Hungarian counterparts and are said to be building their own case, which could include murder charges.

The 59 men, eight women and four children found in the back of the truck apparently suffocated to death two days before the vehicle was found, and their bodies had begun to decompose, according to police.

The only identification found was one Syrian travel document, but officials said they believe most of the victims were from Syria.

The Wall Street Journal reported that the truck’s cargo area was six meters long and 2.5 meters wide, so that there were about five people per square meter inside. Officials said the cargo area had no ventilation. There is evidence that the victims may have damaged the truck in an effort to escape, and that the cargo door may have been wired shut.

Investigators said the truck, which had a Hungarian license plate, started its journey in Kecskemét and picked up the refugees near Hungary’s border.

Refugees demonstrate in front of Keleti Railway Station on September 1.

Police clear refugees from Keleti Following a week of changing approaches to the swelling crowds of refugees outside Budapest train stations, police seemed to be pushing them to go to refugee camps as the Budapest Business Journal went to press.

CHRISTIAN KESZTHELYI

Hungarian police began taking refugees away from Budapest’s Keleti Railway Station in transport vehicles on September 2, following a week of confusing shifts in policy to address the rapid growth in the number of refugees here.

According to reports, the refugees outside Keleti were being taken to Hungary’s largest refugee camp in Debrecen. Police were reportedly advising all refugees outside of Keleti station to report to refugee camps.

Large crowds of refugees had been gathering at Budapest’s railway stations, and since the September 1 decision to deploy police to prevent them from leaving Hungary, the refugees had been demonstrating and demanding a right to board trains for Germany. By some estimates, several thousand refugees had gathered outside Keleti, with a few hundred more at the other stations before police showed up and started to take some

of the refugees away from Keleti and the surrounding area on September 2.

“Hungarian authorities have conducted operations in full compliance with European and national laws in the situations which have emerged in Hungary over the last few days – especially at Budapest’s railway stations,” said a statement sent to the Budapest Business Journal by the International Communications Office of the Prime Minister’s Office earlier on September 2 before the removals started. “European legislation clearly stipulates that Schengen borders must be protected and that citizens of non−EU countries may only leave the territory of a Member State if they have valid travel documents.”

In truth, nothing was very clear about how the rapidly evolving situation was being handled, and it appeared to be heavily impacted by changing sentiment in Germany. Hungarian Prime Minister Viktor Orbán was due in Brussels on September 3, and there was expectation that the process of clarifying EU refugee policy would begin then. “All measures will remain in place as long as they are necessary,” the International Communications Office said.

Spike began in late August The late August spike in Hungary’s refugee population appears to have been accelerated by Hungary’s construction of a fence on the border with Serbia. In a year that has seen a world record in global migration, refugees fleeing the Middle East, North Africa and Central Asia had been heading over that border as it was the safest land route into the European Union.

The first phase of the fence, a coil of razor

wire, was reportedly laid down by the end of August, but it has proven to have little effect in slowing the entry of refugees.

Sentiment toward the refugees seemed to be shifting following the grizzly August 27 discovery of the decomposing bodies of 71 refugees who had apparently been abandoned in the back of an airtight truck by human traffickers who had driven them from Hungary into Austria. European leaders reacted with shock and German Chancellor Angela Merkel called for a more humane response to the situation.

On August 31, police, who had been preventing refugees from leaving on trains abroad, suddenly stopped protecting Keleti train station and large groups of refugees left for Vienna. Shortly after, German officials made public statements to the effect that their policy had not changed, and by the next day, police were again preventing refugees from traveling, sparking demonstrations outside the station.

The situation seems to have evolved faster than officials can react.

“Obviously the European system of migration and the refugee system is collapsing in front of our eyes,” Hungary’s government spokesperson Zoltán Kovács told the BBC on September 1. “There are no protocols in place and discipline should be restored at the borders.”

Orbán’s September 3 meeting with European Commission President Jean− Claude Juncker could provide a forum for the leaders to discuss how the EU can help Hungary handle the current influx of refugees, EC Spokesperson Natasha Bertaud said.

In the meantime, no one was clear as to what would happen to the refugees now in Hungary.

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Photo: MTI / Tamás Kovács

Morgan Stanley distributes 817 refurbished computers in Hungary

Wizz Air completes HUF 1 bln hangar at Budapest Airport Hungarian low-cost airline Wizz Air CEO József Váradi delivers a speech at the inauguration of the airline’s maintenance hangar at Budapest’s Liszt Ferenc International Airport on August 31. The 2,000 sqm hangar was constructed through a HUF 1 billion investment, and will be leased by the airline for a period of 15 years, creating approximately 70 jobs. The structure is located between the hangars of Lufthansa Technik and Aeroplex of Central Europe. The project was carried out by construction company Market Építő Zrt.

The Budapest office of Morgan Stanley refurbished and donated 817 computers to Hungarian educational institutions, children’s hospitals and aid organizations with the help of almost 100 employees performing 400 hours of volunteer work, according to an announcement released on August 26. The 36 organizations receiving the donations include Bátor Tábor, Heim Pál Children’s Hospital, Gézengúz Foundation and Ferencvárosi Komplex Nursery School and Elementary School. Educational institutions were given 502 computers, children’s hospitals received 150, while aid organizations were given 165 computers. “The practice of a corporation donating computers is not a novelty, however, the practice of corporate employees doing so in the framework of social work volunteering is indeed a novelty,” Norbert Fogarasi, Managing Director at Morgan Stanley’s Budapest office, said. The leader added that as data security is very important to the company, the computers had been reformatted and cleared of all data as per stringent security regulations.

Apollo Tyres closes €300 mln financing for Hungary plant India-based Apollo Tyres closed a €300 million financing deal for a plant it is currently building in Hungary, local news portal profit.ndtv.com reported on August 26. The company was supported and

provided debt financing by an international consortium of banks including ABN Amro, Hungarian Export-Import Bank, Raiffeisen Bank, Standard Chartered Bank and UniCredit Bank Hungary, the portal noted. Constructions for the plant began earlier this year with a total investment of €475 mln. The company expects to roll out the first product from the plant in the first half of 2017, the portal reported. According to the Indian portal, the plant will have a capacity to produce 5.5 million passenger car and light truck tires and 6,75,000 heavy commercial vehicle (HCV) tires annually. “This facility will complement Apollo Tyresʼ existing facility in the Netherlands, bringing the whole range of Apollo and Vredestein branded tires to the European market,” the portal cited the company saying.

One injured in blast at Richter plant in Budapest An explosion on the morning of August 27 at Gedeon Richter’s Hungarian plant in the Kőbánya area of Budapest left one person seriously injured according to reports.

Máté Kisdi, the spokesperson of Budapest’s disaster management office, reportedly said that workers in the plant were trying to cut apart an empty container when it exploded and injured one person seriously. After the explosion, methanol was found in the container, and firefighters began cooling the location with water sprays, after closing off a 100-meter perimeter around the site of the blast, origo.hu online news portal said.

Disaster management teams conducted

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BUDAPEST WINE FESTIVAL  9-13 September

EUROPE FOR FESTIVALS FESTIVALS FOR EUROPE

EFFE LABEL 2015-2016

www.aborfesztival.hu

Budapest Wine Festival always offers a nice variety of the finest wines of Hungary’s best winemakers along with foreign wines thanks to noted wine traders. This wide range includes award winning wines from winemakers who have won awards and medals at well known domestic and international competitions. They are also happy to answer questions and give advices to those who would like to become experts.

Visitors can enjoy 5 days of cultural and musical entertainment. Folk dance and music, jazz and the most popular Hungarian bands of world music will create memorable moments during the festival.

The Harvest Parade – Folk Music and Dance Gala, a colourful, appealing mix of dance and music in honour of grape growers and winemakers, is to be held on 13 September at Buda Castle, offering a real sight and celebratory atmosphere to summon up the fun of the harvests in the past. The participants consist of folk dance assembles from wine regions concerned in their special folk dress, promi-

nent persons and members of wine orders and associations of wine lovers.

This year again, Budapest Wine Festival will offer special gastronomic delights made of domestic quality ingredients focusing on the flavours of the cuisine of the guest country. Old recipes revised, hand crafted traditional products and lively bistro cuisine will all be on offer at Buda Castle. Visitors will be able to taste the traditional homemade strudel, the oven baked “Hungarian pizza”, classic stove cake, delicatessens made of Mangalica, Hungarian, French and Spanish sheep’s, goat’s and cow’s cheese, special ham and homemade smoked delicacies.

Explore the Tastes of Hungary on Budapest Wine Festival!

This joyful professional program that draws the attention to the vividness of Hungarian wines and the uniqueness of the local grape varieties can be enjoyed by anyone.

Through the thematic wine tasting routes wine lovers can taste various wines made of Hungarian grape varieties and other wine specialities which are specific to Hungary.

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2 Business

Budapest Business Journal | Sept 04 – Sept 17, 2015

measurements in the area, but reportedly found no signs of chemical threat. Richter reportedly said it is not allowed to provide any information about the explosion while the authorities are still investigating the issue, origo.hu said.

Decathlon Hungary sales jump 17% French-owned sporting goods retailer Decathlon saw its sales increase by a yearon-year 17% in the January-July period, Gábor Posfai, the managing director of the stores’ operator Tízpróba Magyarország, said at a press conference on August 31.

The manager noted that the company’s market share stands at more than 30%, higher than in any other country where Decathlon operates. Last year, Decathlon’s sales in Hungary reached HUF 28.5 billion. Decathlon is scheduled to open its 17th store in Hungary, in Szolnok, central Hungary, at the end of October.

Samsonite launches expansion at Hungarian plant The Hungarian unit of global Samsonite luggage manufacturer has inaugurated a HUF 2.4 billion expansion in Szekszárd, southwestern Hungary, national news agency MTI reported on August 24. The investment was supported with a European Union grant of HUF 717 million. Samsonite Hungária Bőrönd has built a 4,400 sqm production hall and installed new technology, increasing capacity by 28% and creating 50 new jobs. Plant manager József Pinczel said the plant currently produces 700 suitcases a day using the new technology; output will be increased to 900 units a day in a few months. The plant turns out about 700,000 suitcases a year. Samsonite Hungária had revenue of HUF 16.4 bln in 2014 and projects similar revenue in 2015. Headcount is expected to grow from the current 540 as output increases, Pinczel added. The company said the development is part of a €17 mln six-year program, supported with €5 mln in European Union funding.

Electrolux transfers part of refrigerator production to Hungary Swedish white goods company Electrolux has already begun production in Hungary of an annual 70,000 built-in refrigerators, the capacity of which was moved from ADVERTISEMENT

Italy, Electrolux Lehel CEO Sándor Gönczy told Hungarian news agency MTI on August 31, confirming earlier reports in the Italian press. Electroluxʼs bases in the Hungarian cities of Jászberény and Nyíregyháza are the company’s largest refrigerator plants in Europe, Gönczy said. The decision to move production was announced by the company two years earlier, he added.

Romanian Astra insurer goes bust, Hungarian clients seek compensation Romanian insurer Astra, which also has a subsidiary in Hungary, has gone insolvent and its license has been withdrawn by Romania’s financial market watchdog Autoritatea de Supraveghere Financiară (ASF), the National Bank of Hungary (MNB) reported on August 27.

According to the central bank’s report, Hungarian clients of Astra are eligible for compensation by Romania’s state insurance guarantee fund up to the equivalent of €100,000. ASF appointed an oversight commissioner to the insurer last year, MNB reported. Astra saw revenues from premiums of HUF 2.8 billion in the first half, and a market share of 0.62%, according to data compiled by the Hungarian Insurers Association (MABISZ), Hungarian news agency MTI reported.

European Commission clears MTel, MET Holding JV The European Commission reported on August 20 that it had approved the establishment of a joint venture

by Magyar Telekom, the subsidiary of telco giant Deutsche Telekom, and MET Holding to supply retail gas and electricity. “The Commission found that the proposed transaction would raise no competition concerns, because the joint venture will face strong competition from companies currently active in the Hungarian energy markets as well as from new players, expected to enter the market in the near future,” the statement published on the EC’s website says. MTel announced in May that it would exit the retail gas market from July 31, 2015, Hungarian news agency MTI reported.

Hungarian oil and gas company MOL owns 40% of energy trader MET Holding, the news agency added, citing the company’s website.

PwC appoints new director David Hurst has been appointed director at PwC Hungary, responsible for Business Recovery Services, an announcement released on August 26 reports. He joined the Hungarian branch from PwC UK, after more than 16 years of experience advising on all aspects of financial and operational restructuring, business reviews, insolvency, and transactions involving distressed assets and non-performing loans, according to the announcement.

Hurst brings significant international experience working with public sector clients, corporates, lenders and investors, most recently on assignments across Central and Southern Eastern Europe, the announcement added.

Unilever Hungary welcomes new leader Regina Kuzmina was appointed regional manager for Unilever Hungary and the Adria region as of August 1, while becoming a member of CEE management board at the same time, an announcement on August 26 reveals.

She started at Unilever responsible for the Russia-Ukraine-Belarus region in 1997, and has been working in various positions for the last 18 years, such as marketing and media communications. For the past four years she was the sales manager of the aforementioned region. “It is an honor for me that I can lead an excellent team,” the new manager said. “The business successes of the last couple of years speak for themselves: excellent professionalism, tendentiousness, strong commitment, speed and entrepreneurial attitude characterizes my new, victorious team,” the professional added. She noted that it is not her aim to “improve the business, but to make it more successful”.

Erste to buy Hungarian retail business of Citibank Erste Bank is planning to buy the Hungarian retail business of Citibank,

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while Citibank will continue to focus on corporate and institutional clients, the two banks jointly announced on September 2, according to Hungarian news agency MTI. Citibank is expected to give over its retail deposit, investment, personal loans, credit card and micro-enterprise financing (CitiBusiness) segments, the news agency reported, adding that Citibank Europe plc. reached an agreement with Erste Bank Hungary as well as its subsidiary Erste Befektetési Zrt. According to the announcement the deal is not expected to be wound up before the fourth quarter of next year, and is still pending regulatory approval, which could be received around the end of 2015. It is unclear how many Citibank customers Erste is able to retain but Erste will have to make efforts to be able to offer the same service levels and products as Citibank did, a source from the banking sector told the Budapest Business Journal. The acquisition of the retail arm of Citibank in Hungary comes amid a consolidation process triggered by the government’s mandate to increase the share of Hungarian banks and decrease the number of commercial and retail banks in the country. Private banking, card operations and wealth management are considered some of the activities that remained lucrative after the FX loan conversion and bank levy imposed on the sector and Citibank has built a strong position in these areas since they entered the Hungarian market. Citibank’s private banking clients also suffered substantial losses on Lehman Brothers bonds in 2007, which Citibank had marketed to its premium clients prior to Lehman Brothers becoming insolvent. Citibank, however, had maintained its focus in Hungary on retail and wealth management and private banking clients, the source noted.

TVK changes name to MOL Petrolkémia Hungarian petrochemicals company Tiszai Vegyi Kombinát (TVK), 100% owned by Hungarian oil and gas company MOL, has changed its name to MOL Petrolkémia, under which it will now operate, MOL reported on its website on August 28. It was reported in March that MOL had announced its 100% acquisition of Tiszai Vegyi Kombinát, Hungarian news agency MTI said. MOL is building a HUF 35 bln butadiene plant in Tiszaújváros, eastern Hungary, where TVK is located, MTI added.

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REAL ESTATE NEWS

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Budapest Business Journal | Sept 04 – Sept 17, 2015

Property market enjoys a hot summer A major deal by Morgan Stanley was one of several in recent months that show growing investor interest in the Hungarian market, by both locals and foreigners. We review the summer season’s big transactions.

GARY J. MORRELL

The summer has seen three significant investment transactions as favorable investment sentiment and market fundamentals are resulting in improved liquidity with transactions concluded by international and local investors in addition to a major company transaction.

While Hungary still lags behind Poland and Czech Republic in terms of investment volume, the significant yield gap is now attracting the interest of international investors. The following deals provide reason for optimism about major investments here.

The landmark West End City Center, above, is not part of the TPG-TriGranit deal. Below is MOM Park, now owned by Morgan Stanley Real Estate Investing.

“We have seen an increased level of investor interest in Hungary, targeting mostly offices and retail assets, and we are certain that the transaction volume by the end of the year will be significantly higher than in 2014.”

Morgan Stanley acquires AEW portfolio In one of the most significant transactions in Hungary in recent years, a group of investors led by Morgan Stanley Real Estate Investing, in partnership with the Hungarian developer and investor WING and the Austrian shopping center manager and investor CC Real, has purchased a Budapest portfolio consisting of the 31,500 sqm MOM Park shopping center and the adjacent 19,000 sqm office building in Buda from a fund managed by Germany’s AEW Europe.

The deal also comprises the 28,800 sqm West End Business Center and the 13,700 sqm EMKE office center, both on the Pest side of Budapest. pbb Deutsche Pfandbriefbank and Erste Group Bank AG have jointly underwritten a €126 million facility.

“Hungary’s real estate investment market has been showing growth in transaction volumes and we expect this trend to continue throughout the year,” commented Richard Wilkinson, head of commercial real estate at Erste Group Bank. “This is a strong sign of the overall recovery on the Hungarian real estate market.”

The transaction is the largest sale in Hungary since the 50% disposal of the Allee shopping center in Budapest for circa €100 mln according to JLL, which advised AEW on the deal.

While 2014 saw a clear re−emergence of investment activity, this was focused on domestic funds such as Diófa and the Erste Fund, with international funds tending to keep their distance. “The Morgan Stanley/AEW deal will open minds to Hungary once again. While the occupational fundamentals have been there for a while, investors have struggled

to answer the question of who to exit to.

However, the weight of a player such as Morgan Stanley will surely open eyes to what the market has to offer. As the market attracts more investors, the price gap between sellers and buyers needs to be more realistic,” said Mike Edwards, head of capital markets at Cushman & Wakefield, which advised the purchasing consortium on the deal.

The company sees market fundamentals as key, for example falling office vacancy in contrast to Poland and Czech Republic and low supply set against increasing levels of demand make for favorable conditions for future rental growth prospects. As office rents rise, yields are expected to compress.

“Hungary’s real estate investment market has been showing growth in transaction volumes and we expect this trend to continue throughout the year. This is a strong sign of the overall recovery on the Hungarian real estate market,” concluded Benjamin Perez− Ellischewitz, head of capital markets at JLL Hungary.

Bluehouse Capital purchase Infopark E In the largest single asset deal in Hungary for 2015 to date, the Hungarian Diófa Asset Management fund purchased the 17,000 sqm Infopark E from the regional

investor Bluehouse Capital. It had acquired the asset in 2012, and has strived to reposition the building by improving its tenant mix and achieving full occupancy.

The office center is located in Infopark, the key high tech office area for IT companies in Budapest. The new owner is the Magyar Posta Takarék Ingatlan Befektetési Alap, managed by Diófa Asset Management.

“Budapest represents a great buying opportunity for investors seeking quality products at a yield premium compared to other core CEE markets,” said Bence Vécsey, director and head of investment services at Colliers, which worked on the deal. “We have seen an increased level of investor interest in Hungary, targeting mostly offices and retail assets, and we are certain that the transaction volume by the end of the year will be significantly higher than in 2014.”

TPG acquires TriGranit CEE portfolio TPG Real Estate, the real estate platform of the private investment firm TPG, has reached an agreement to purchase TriGranit. “Whilst ostensively a company deal, it is still one that has obvious positive implications for the Hungarian property market,” Cushman & Wakefield commented on the transaction.

TPG Real Estate is committed to further development of the TriGranit CEE platform. According to the agreement, TPG will acquire TriGranit’s development

and asset management platform as well as a portfolio of high quality assets.

The acquisition covers the full Polish and Slovakian portfolios, and part of those for Hungary and Croatia. Certain assets such as the WestEnd City Center in Budapest, and some other TriGranit− related projects, have been left out of the transaction. TriGranit’s existing management team will remain in place.

“TriGranit’s deep local market knowledge and a high quality real estate portfolio position the company well for future growth,” said Anand Tejani of TPG Real Estate. “We see a number of opportunities to expand the TriGranit platform. We look forward to working together with the TriGranit management team to continue to grow the business.”

The company has approximately $75 billion of assets under management.

Sándor Demján, Sándor Csányi, Peter Munk and Immofinanz AG currently own TriGranit. Upon completion of the transaction, Demján and Csányi will acquire the shares of Peter Munk and Immofinanz. The company describes its primary focus as mixed−use “city center” projects and office and retail developments in strategic urban locations. TriGranit was founded by Sándor Demján, Munk, AIG and EBRD in 1997, and has completed development projects totaling more than one million sqm, worth approximately €2.5 bln, and has a pipeline worth more than €4 bln.

The transaction is expected to close before the end of the year.

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3Special Report Systems integration: A big challenge 18

Mining social media for marketing 20

Women in charge of IT

Gabriella Szentkuti, CEO of Microsoft Hungary, discusses the need for female programmers.

Other stories in this section cover concerns about a lack of IT talent.

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Budapest Business Journal | Sept 04 – Sept 17, 2015

Women donʼt want to be alone atop IT world While there are few Hungarian women in corporate leadership and in the IT field, three bosses of major businesses show this is a situation that can change.

Worldwide, women are in the minority when it comes to both corporate leadership and participation in the field of information technology, so it is no surprise that there are very few women heading IT firms. These trends are even more obvious here in Hungary, where men are generally in charge and few women even enter the tech field. Yet there are signs of change.

As of July 1, when she was appointed CEO of Microsoft Hungary, Gabriella Szentkuti joined Krisztina Horváth, general manager at Cisco Systems Magyarország, and Edina Heal, country manager for Google Hungary, in the small but growing group of women leaders in Hungary’s IT field.

Though they may be relatively lonely at the top right now, all three say that the situation is improving as more young women develop an interest in IT. They also say that things need to get better – if for nothing other than economic reasons.

“You don’t have to be a feminist to see that gender inequalities are bad. Beyond the obvious – moral, ethical and legal – reasons they’re bad for business too,” says Szentkuti who was promoted from head of business strategy to the role of CEO at Microsoft Hungary.

With more women graduating in Europe than men – 59% versus 41% according to an EC study – there is vast, untapped potential of which foreign− owned firms are taking advantage.

All originating in the United States, Cisco, Microsoft and Google have long made it their mandate to hire women and encourage their advancement, not only because it’s fair but also because it makes good business sense.

“We have to bring down all the barriers standing in the way of productivity.

And leaving out certain professionals from leadership, just because they are women, is a sinful waste of productive energies,” Szentkuti says, adding that she considers herself a chief executive who “is both ready and capable of leaving behind outdated stereotypes that hinder productivity”.

Advantages to being a woman Horváth, whose job as GM makes her responsible for Cisco’s sales, marketing and technology operations, says she believes that there are many advantages to being a woman in IT. “It is easier to stand out in an environment where

Photo: Jessica Fejos

ANIKO FENYVESI

Google’s Edina Heal: ‘Go out and learn how to code!’

“We have to bring down all the barriers standing in the way of productivity. And leaving out certain professionals from leadership, just because they are women, is a sinful waste of productive energies.” most of the leaders are men,” she notes.

“At the same time, you have to realize that 50% of IT consumers are women.”

As such, Horváth says, women have a better understanding of how women think and how they make purchasing and other decisions.

Szentkuti agrees that women have a different mindset. “It’s harder to sell retrograde solutions to a woman simply by referring to them as traditional,” she says. “In return, this constant ‘awareness’ against irrational arguments made us more open−minded and adaptive to innovation and change in general than men, who can always allow themselves the comfort of tradition.”

While she sees advantages to being a woman, Szentkuti highlights the danger of labeling one’s skill set as distinctly feminine, rather than owning those skills as an individual. “The leadership skills or characteristics I hope I have are not the features of a female CEO, but the personal features of Gabriella Szentkuti – partly brought from home, partly accumulated throughout decades of a professional career.”

Google Country Manager Heal noted one trait considered typical of women that can work against them: They are not as pushy as men.

“There is a gap between men and women engineers asking for self promotion, which shouldn’t be the case based on their performance,” says Heal.

“So the HR team [at Google] came up

Microsoft’s Gabriella Szentkuti: ‘You don’t have to be a feminist.’

Cisco’s Krisztina Horváth: ‘50% of IT consumers are women.’

with a simple, but powerful solution: They sent out an encouraging email to the female engineers. This resulted in closing the gender gap in promotions in our technical teams.”

idea. According to a recent study cited by Horváth, many of the startups founded or co−founded by women are performing better than those founded by men.

Maintaining balance It is not just sexism or a less aggressive approach that holds women back. In all fields, and therefore in IT, work− life balance, is generally a greater consideration for women.

But progressive companies such as Microsoft have come up with solutions to overcome the challenges associated with raising a family while also trying to fulfill one’s professional path. “The ICT sector – especially productivity service companies like Microsoft – help to redefine the notion of workplace and office hours, collaboration or distance work,” says Szentkuti, who herself is an avid user of ICT solutions and a mother of three. For Szentkuti, choosing between family and career was not an option. She wanted both. At Microsoft, she says, if a woman is more suited to a particular role, there’s nothing to prevent her from attaining that position and keeping it.

Horváth also sees the rapid growth of IT as a positive shift for women looking to enter or advance in their chosen profession. “Some analysts have gone as far as to say that in the next few years, 90% of all jobs will require IT literacy,” she says. Her advice to women looking to enter the field is “not to think of IT and technology as a separate world of its own, but to think of how it impacts and changes each and every job”.

Luck, timing and connections will always play a key role for woman striving to reach the top, but these leaders say they believe that the changing technological landscape and perseverance are also vital components of success. “You don’t necessarily need to be a programming genius to be successful in IT,” says Horváth, adding that many of today’s successful apps were born from a simple

Start them off early Szentkuti is keen to encourage girls to choose a career in the ICT industry and says that it is a rapidly growing field with some 120,000 new jobs emerging each year. “According to the Digital Agenda of the EU, there may be a lack of 900,000 skilled ICT workers by no later than 2020,” she says. This is a clear−cut opportunity in a sector underrepresented by women.

“What makes the ‘discovery’ of the ICT industry by women even more important, is the alarming trend that we have to stop: Even after the low base there is a drop in ICT female graduates,” Szentkuti says. “According to the EU’s numbers, today only 29 out of every 1,000 female graduates have a computing or related degree and, what is even worse, only four [out of 1,000] go on to work in ICT− related activities.”

Szentkuti says the problem is not simply male dominance of the sector, but also bad career decisions made by generations of women. “There is a bold future for women in the ICT industry,” she says, “and I am personally committed to making more and more Hungarian girls and young women aware of that.”

Heal promotes the message of diversity for which her global employer has become well known.

“It is also the adults’ responsibility to help young girls be self confident in whatever they love to do,” she says.

“Having a more balanced, diverse workplace, with men and women working on a given product has proven to be more successful in many ways. This is also why Google works hard on increasing the number of women engineers at the company. So my message to the female students is: ‘Go girls, go out and learn how to code!’”

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Budapest Business Journal | Sept 04 – Sept 17, 2015

EXPERT OPINION

Talent must keep up with technology Ariane Reinhart Member of the Executive Board, Human Relations and Director of Labor Relations

CONTINENTAL CORPORATION Particpants in Skool learning to code.

Tech firms in Hungary are giving their support to a program designed to encourage the next generation of women in IT. ZSÓFIA VÉGH

Hungary has an untapped pool of future IT professionals: Young women, who are extremely underrepresented in IT education, even compared with the rest of Europe or the region.

To involve more young girls in the IT sector, firms such as Google, Microsoft, Prezi and Z have joined Skool, which seeks to get young women acquainted with IT. The organization, set up by former LogMeIn talent manager Szilvia Koleszár, runs a range of programs from one− day workshops to 10−week−long camps mentored and financed by firms and volunteers. Kolesszár came up with the idea while on a fellowship in New York, where she developed a method to demonstrate that young women can enjoy, and thrive, in IT education. Upon her return last year she started Skool; having completed a few workshops and a camp, she decided to take over a similar program run by Prezi, an

in−house course for high school girls who had one year until the final exams.

“Coding Girls” ran for six months from January 2014 and introduced 14 girls to the world of IT. Skool’s popularity has constantly been growing, with applications exceeding available spots by four or five times. The syllabus changes, depending on the type of course, with topics like robotics, mobile app development, computer graphics and animation, as well as web design.

At its after−school program this summer, during two−week camps (costing HUF 55,000) designed around a spaceship scenario, the young women learned how to program, understand robotics basics, do some HTML−coding, and handle web development. These skills were topped off with training in project management and presentation skills. “Our goal is to grow into a country−wide network of clubs, so that not only girls in the capital have access to these courses,” Koleszár told the Budapest Business Journal.

EC: Women rare on corporate boards BBJ STAFF

A legislative proposal put forward by the European Commission in 2012 was designed to increase the number of women on the non−executive director boards of European− based companies to 40% by 2020.

The Commission recommended that the legislation should stipulate that companies with more than 250 employees and revenue in excess of €50 million would be required to report annually on the gender composition of their boards. Failing to meet the mandatory quotas would result in fines or the barring of companies from state aid and contracts.

This regulation would only apply to approximately 20 companies registered in Hungary; it was estimated that, even with the quotas in place, it would take companies approximately 40 years to reach the proposed level of women in non−executive director boards.

Hungary refused to participate in the measure.

According to a report published by the European Commission in 2014, “gender gaps in employment and decision−making have narrowed in recent years, but women still account for less than a quarter of company board members, despite representing almost half of the employed workforce (46%).”

Women face three types of disadvantage on the labor market in Europe according to the 2014 EC report: being paid less per hour; working fewer hours in paid jobs; and being under−represented in paid jobs. The result is that women earn much less than men on average, and the total earnings gap reached 37% in 2010.

Data compiled by the European Commission in 2012 and 2013 states: “Women have only a near zero chance to obtain board member positions in the largest and most influential companies quoted on the Hungarian stock exchange.”

In the middle of August, Dr. Ariane Reinhard, Continental’s Member of the Executive Board, Human Relations and Director of Labor Relations visited Hungary. The top manager visited Continental’s Veszprém and Budapest factories.

During her visit, she gave an exclusive interview to the Budapest Business Journal.

What are the workforce trends in Hungary and in the region?

The half-life of technical innovations is becoming ever-shorter. It’s our responsibility not only to set the pace but also to anticipate and initiate the necessary change processes early on.

A new machine can be commissioned at the touch of a button. But when it comes to talent we all know this is not the case. For this reason we have to synchronize both technical innovations and talent development in ever-shorter intervals, which is a major challenge for HR. HR will have to initiate change processes to ensure that Continental is among the winners in our competitive industry. On this path, it will fall to us – and, increasingly, to me – to take the organization and, even more importantly, each employee along with us.

Our focus will also be on our concept of “best fit.” How can we find employees who are the “best fit” for our company and our corporate culture? Rather than sticking to formal qualifications, I consider candidates individually and then decide which skills and capabilities they can contribute to our organization, rather than giving them assignments that are too restrictive for them and which do not enable them to develop. For Continental’s (potential) employees, HR must be the catalyst that enables individuals to develop their skills and capabilities. This is why we no longer see HR as “Human Resources” but as “Human Relations.”

This reflects our focus on relationships with and between the members of our global team.

What is the opinion within Continental Corporation about the Hungarian workforce?

What makes Continental a particularly attractive employer is the fact that we have a unique corporate culture based on our four core values. We have been spreading these values in all our markets across the world. These four values are what make us “One Continental.” This is something that I experience every time I travel to our locations around the world. At every location, I ask our employees what they think and feel about Continental. From their responses, it is clear they see Continental as more than just a workplace and source of income.

They feel they belong to and are part of a strong team that is like one large family.

Our Hungarian colleagues are valuable and key members of the Continental team.

Approximately 7,700 employees work for Continental in Hungary. Five years ago we had just around 5,800. This growth indicates our confidence in the future of the people and market here. In Hungary, Continental is one of the top ten most attractive employers, which is why we expect our growth to continue and even accelerate.

What are the most important factors of competitiveness of a country in terms of workforce for Continental?

I would like to point out two things: education and competitive labor costs.

To enable us to remain competitive and successful in the future, it is important for us to find well-trained specialists. It is important for us to find the right person for the right job at the right time. And we are working on creating an excellent work environment for our employees with our corporate culture and programs for a healthy workplace. Continental is one of the top ten most attractive employers in Hungary. We are growing in Hungary and we will continue to do so.

In addition, competitive labor costs are very important for us. Wages will grow naturally in Hungary too, but the question is how fast this growth will be and how desirable it is.

How much is Continental planning to invest in Hungary in the near future?

In 2014, we invested over €30 million in Hungary. In 2015, we are planning to invest even more. From an HR perspective, it is really interesting to see how we in HR can actually make cash for the company. These days, the “return on investment” – for example, in relation to the selection of staff – can be ascertained in many ways. This is a field that we will be paying great attention to in the future.

Part of this is to create the “best fit” – and this starts right at the beginning, when we select staff.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

‘Coding Girls’ get ready for the future

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Disabled can fill gap in IT labor pool Even though people with disabilities can handle IT jobs, and the government provides financial incentives to hire them, few firms are taking advantage of the talents available. But the situation is changing, and certain companies are leading the way.

NÓRA KROKOVAY

As Hungarian firms scramble to fill the demand for programmers and other IT workers, one potential source for talent is among workers with disabilities. Thus far, however, this talent pool has been largely underused.

Many people with impaired abilities can still work a computer, especially given the range of advances in special devices that improve access to computer use, and there are government incentives to encourage the hiring of the disabled. Companies with staff of more than 100 whose work force is not at least 5% disabled paid a total of HUF 66.295 billion in “rehabilitation penalties” in 2013. Meanwhile, the carrot to that stick is that firms who hire disabled employees can save on the 27% social tax for those workers, and other schemes allow for grants of up to 100% of a disabled worker’s pay.

Still, the number of companies influenced by these incentives is small, perhaps because companies like to plan long−term, and incentives, perceived as short−term, are often not strong enough to change practices. In the end, the decision to use disabled workers to increase an IT workforce seems to require a proactive decision by the employer.

The portal solutions developer Liferay Hungary is an equal opportunity employer, and being the unit of an American firm, this has roots and is not just a slogan, says Zsolt Balogh, the company’s chief executive.

Programming, customer services and client support are the areas that offer the most job opportunities for disabled people.

“As a software company, we have lots of monitor−based tasks and working remotely is also an easy option. The Budapest office is a support center providing client services for the whole globe. It does not matter where our staff sit; the important thing is that we can give them the support they need if they turn to us,” Balogh says. “One of our quality engineers is in a wheelchair and works for us remotely from his home in a small town in central Hungary. Our support team personally installed the workstation in his home when he started the job in 2012. He is still able to take part in meetings and even company events.”

As for government incentives, Balogh says, “everything must start somewhere”.

IBM Hungary’s Ability 6 course in session, above and below.

“One of our quality engineers is in a wheelchair and works for us remotely from his home in a small town in central Hungary.

Our support team personally installed the workstation in his home when he started the job in 2012. ” After a while, Hungarian companies are sure to realize that there are more reasons to employ disabled people than just the tax breaks and grants. “They really help company culture grow,” he says, adding that the most motivated team players are among disabled colleagues. Today’s technology should give lots of options for both employees and employers so that such recruitment is no longer a “dreamland”, he says.

Right person for the job The Kézenfogva Foundation, an NGO specialized in support for disabled people including jobs services, hopes to see more of the good practices very soon. Work rehabilitation was not always a given, and the foundation started out years ago in coordinating placements in community work centers in a segregated setting, labor market service manager Miklós Fehér tells the BBJ. Since 2010 they have been working hard on integrating disabled job seekers into the open labor market.

Government incentives do help, and there has been a lot more interest in employing people from this target group, he says. But matching high−skilled candidates to jobs in an integrated environment is still not easy, though the proportion of diploma holders is not lower than in the whole population, Fehér noted.

IBM Hungary’s Anikó Kis agrees. She has been working in the diversity and inclusion field for 11 years, currently

responsible for Central and Eastern Europe.

A large firm will look to have the right person for the right job and will not hire people or create fake jobs just to minimize tax, she tells the BBJ. An example of the extra attention needed is helping disabled candidates become more employable. IBM’s latest program, Ability 6, offers six workshop sessions through six months, helping potential candidates with disabilities develop their soft skills for the job market, Kis explains. “Halfway through the program I can say that we have had very positive feedback,” she adds.

Service centers are more successful in hiring, while higher−skilled jobs are more difficult to fill. The requirements of specialized IT technical knowledge on top of advanced language skills makes these positions very selective, she says. The 5% quota is applied equally to all companies, whether they are a production firm with lots of manual labor openings or whether they require highly specialized staff. It would be great if Hungary followed the example of other countries and allowed to increase employment of the disabled against the quota by contracting suppliers who are certified employers of people with disabilities, she says. At IBM Slovakia, for example, some of its suppliers work

Zsolt Balogh of Liferay. more with disabled people. But filling the quota with specialists is an entirely different matter.

Hiring a disabled person is a complex process. Special support is needed every step of the way and this this requires focus and resources, more so than is covered by the government incentives, she explains.

Nevertheless IBM, too, has been working to increase its number of disability hires, building more on partnerships with the civil sector and universities than on state subsidies, she said.

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Budapest Business Journal | Sept 04 – Sept 17, 2015

IT firms create their own developers in-house Many Hungarian firms find they need to handle their own training to ensure that they have a good supply of programmers with practical skills.

Meanwhile, some innovative schools are offering creative solutions that can help improve the talent pool.

ZSÓFIA VÉGH

A senior engineer with a degree from a reputable college and several years’ experience at international firms is about as easy to find as a unicorn, according to Judit Radnai−Tóth, talent manager at Prezi, the famous Hungarian maker of presentation software.

Instead of hunting for such a rare beast, Prezi designed its own six−month course, called “Jump”, which is designed to give future coders some practical knowledge.

“The two major considerations for the program was to have participants work on real−life problems – and in real−life working conditions [at Prezi],” said Csaba Faix, international communications manager. Of the 120 applicants to last year’s program, with diverse backgrounds in areas like accounting and mathematics, 12 gained admission to the course and all have secured a post as a programmer since.

The “Jump” course is different in that it offers practical, hands−on training in the kinds of skills that employers are looking for – as opposed to the theory often taught by universities. As the supply of good programmers becomes scarcer, other companies in Hungary are following suit, developing their own in−house training to create the next generation of employees.

These courses not only seek to correct the insufficient supply of IT graduates, but also to improve the level of job−oriented skills among young programmers.

Being a developer used to involve intensive training in mathematics, but with the appreciation of soft skills like communication, employers take a different approach to hiring. “If we can choose between a level−4 coder who fits perfectly into the corporate culture versus one better qualified but less fitting, we will hire the first. You can train someone to be a level−5, but you can’t change their personality,” said Prezi’s Radnai−Tóth.

Even startups and small− and medium− sized enterprises feel the shortage.

“We have realized that, despite our size, we need to do some form of talent management,” said Károly Schramm, managing director of Smartfront Kft., which has 17 employees. The company develops web−based ERP, CRM, web shop and developer framework – “an area where you need to keep innovating”,

Barbara Fazekas.

“Coding is a language too, and understanding its workings can be useful in a project. If you are willing to part with your current profession, reframe your skills, you can become a successful project manager. ” Schramm noted. They work hard to raise a good employee – seniors usually aren’t aware of the latest innovations, juniors just don’t know the software. “It is not the lack of coding languages we regret, but rather the lack of practical knowledge.”

Outsourced in-house training For firms that do not have the capacity or desire to build their own training programs, new Hungarian services like the Green Fox Academy and Codecool provide a sort of hybrid between out− sourcing and in−house training.

Green Fox Academy trains a group of students for coding with funding from a sponsor firm. The sponsor promises to hire a certain quota of graduates.

Students who take the four−month course agree that they will accept the job offer of the sponsor – or else pay the HUF 1 million + VAT in tuition fee themselves.

The monthly salaries of the trainees must be kept at a minimum of HUF 150,000 to HUF 250,000, but given the desirability of good coders, the salaries will probably be more.

Fazekas and her partners claim to have created a curriculum that will turn anyone into a coder. She maintains that learning to program doesn’t require any special skills, and that a lack of mathematics or IT knowledge is hardly an obstacle. For example, she said, many end up working as hotel receptionists, frustrated and disillusioned, with untapped potentials.

“Coding is a language too, and understanding its workings can be useful in a project. If you are willing to part with your current profession, reframe your skills, you can become a successful coder,” Fazekas said.

The Green Fox Team.

Indeed, talent managers say, coding is only part of the job, and other skills that make people good workers are essential.

Firms complain that universities don’t equip students with practical/marketable knowledge. While recent graduates of the Technical University of Budapest are in demand for their general, yet mostly theoretical, knowledge, these graduates are not taught soft skills and do not work on concrete projects.

Competitive schools offer practical skills Universities that are poor in giving practical knowledge argue that it is not their job to follow every whim of the market. Regardless of whether they are in synch with the needs of employers, the larger, better known universities receive enough subsidies and tuition to make ends meet. Smaller colleges, whose future is dependent on how many students they can attract, are more likely to reform. This is what happened with the IT Institute of Dunaújvárosi Főiskola which, having run a pilot program this year, will use a new teaching method from September.

Graduates are having difficulty adjusting to the needs of a new workplace, according to Vid Honfi, head of department at the IT Institute. Since the seven semesters designated to train B.Sc− level engineers does not allow to cram in both theory and practice, the institute in Dunaújvárosi decided to focus mainly on the practical side. They chose to train Java programmers as, “that’s the type of coder most companies are searching for”, Honfi said. The rest of the subjects are designed to support this aim.

The institute did not dramatically change the curriculum, as that would have required legislation. Instead, it modified the order of subjects. “During the pilot course, students had the ‘aha!’ moment much more often as, thanks to the new order of classes, knowledge synthesized more rapidly,” Honfi said.

Around 60 students have enrolled in the new scheme, which is also available in English, as a way to attract more foreign students. Though many of the professors are active in the market, and run or work in an IT firm, the teachers proved most resistant to change, but now they see the benefits, Honfi said.

Push to increase IT graduates Over the long−term, better solutions are needed if Hungary is going to maintain its position as a competitive center for IT. The number of those applying for IT faculties has decreased from approximately 8,600 to 5,300 since 2001, according to data from the ICT Association of Hungary (IVSZ). Half of the college students dropout, and the remaining 2,000−3,000 who finish their studies can’t meet even the current Hungarian market demands.

“Until recently, the market filled the holes by recruiting from Hungarian speaking professionals from neighboring countries. As salary levels and conditions have caught up in Romania or Slovakia, people no longer come here,” Ádám Horváth, head of the education committee of IVSZ, said.

In order to reform IT education and increase the number of students applying to IT faculties, IVSZ recently compiled a list of suggestions for elementary and secondary schools to accomplish by 2018.

Among other recommendations, IVSZ calls for broadband connection of at least 100Mb/s/school or 2Mb/s/student, a minimum of two IT/programming classes per week, mandatory programming of robots in elementary schools as well as mandatory mobile/web development sessions in secondary education. The organization also urges the replacement of outdated equipment (25% per year) and would equip every teacher with a laptop. Rather than banning them, the association promotes the use of smart devices during class, urges the introduction of shorthand typing classes from Grade 6 and increased use of digital technology in classes.

Solid math and physics knowledge in secondary schools is also essential to grow the number of IT graduates. That students score higher in IT (with even lower math results) is misleading, says Horváth, as IT taught in high school has unfortunately nothing to do with the knowledge colleges expect. Universities that recognize this and hold courses to close the gap will be able to recruit more students, Horváth added. Once that is done, they can begin tuition in a reverse order, starting from the practical rather than the theoretical side.

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Budapest Business Journal | Sept 04 – Sept 17, 2015

Bright young minds in Hungary With little more than some good ideas, boundless energy and a willingness to work hard, young entrepreneurs are creating exciting new IT−based businesses around the country. Shown here are some of the leaders behind the movement that is helping turn Hungary into a European startup hub. Photos and words by Jessica Fejos.

Andras Kaldos, 32 Brick Visual co-founder (brickvisual.com) Brick Visual opened its doors in 2012, offering a new means for architectural visualization design rendering.

“We are using technology to make artistic images. It’s a mixture, or combination, which is a nice example of technology affecting art,” says Andras Kaldos. As a young entrepreneur, he says, his original business plan seems naïve, but he adds that the market, paired with the growing ability to connect on a global scale, has taught him a lot in just three years.

The firm is thriving, with more than 35 employees in their Budapest office, below.

Zsuzsa Kecsmar, 27 Antavo co-founder (antavo.com) Soon after graduating from the University of Szeged, Zsuzsa Kecsmar became involved in the founding of Antavo. The company develops an online tool for e-commerce businesses and general retailers to collaborate with customers and build loyalty through promotions like sweepstakes, contests and giveaways. Shown above are the rest of the staff in their office in Szeged.

T T

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Csongor Bias, 26 Design Terminal, head of tech incubation (designterminal.hu) Csongor Bias specializes in technology for Design Terminal, a government agency that is responsible for supporting designers, startups, innovators and entrepreneurs in Hungary. He says there are a lot of possibilities for young people starting their own firms here to find a niche in the business: “Budapest has it’s advantages. We have good resources of tech talent and engineering talent, and you don’t need to compete directly with tech giants like Facebook and Google.”

István Lam, 26 CEO Tresorit (tresorit.com) Founded in Budapest in 2011, Tresorit is a new kind of file-sharing service that is designed to provide true security in a cloud-based environment, so that only authorized users can access data. “We started on our Mary Collins Alcantara, 29 own. We had a nice office, my living room.” István Lam TandemLEAP co-founder quips. Business is doing well, and the company now Central European University alumnus Mary Collins Alcantara and a classmate co-founded TandemLEAP, a firm that promises a one-stop-shop for startups hoping to break into the American has a new office overlooking the Danube River. Lam market. “We were at the right place at the right time. We grew by word of mouth,” she says of her says he believes that in today’s tech world, age does company’s successful start. Her advice for young entrepreneurs: “There is no time like the present. not play a role. If age does matter at all, he adds, it is more of an advantage to be young.

Definitely go for it and learn a lot. Now is the time to pursue these kinds of things.”

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Budapest Business Journal | Sept 04 – Sept 17, 2015

Systems integration: A big job that can pay off Creating one united system out of the multiple systems being used in your company is a daunting task, but the rewards can be better communication and more transparent operations. Fortunately there are local firms who can help. For a complete list of local systems integrators, ranked by size, see Page 25.

“When small companies start to grow the number of services offered to their partners and clients, they soon face several challenges caused by the heterogeneous systems designed for each of the offered services.” carried out as a principal contractor.

Biting the bullet

BBJ STAFF

If you work in a large corporation, you have an idea of how hard it can be to get members of various departments – sales, accounting, production – to communicate with one another. Imagine how hard it is to get their diverse software and systems to communicate.

Indeed, one of the more complex types of work undertaken by IT firms is the challenge of systems integration – the process of uniting all the diverse systems used within one firm or organization.

The benefits are obvious: If all systems are integrated, it is easier to view a company as a whole, and communication is enhanced. But undertaking the task can feel like creating a new IT network from scratch. It almost always involves the use of a large, capable consultant, of which there are several in Hungary.

“When it comes to system integration, many puzzles have to be solved. Data needs to be moved across different systems, platforms, and devices when the hardware and software components are different. How do you ensure that the information is delivered even when the system is not online or busy? How ADVERTISEMENT

Ferenc Pál of IBM. do you ensure data integrity or handle lost or duplicate data? Ensure security between the systems? There are so many things to think about carefully, but these can either be solved one−by−one in the systems or by using a proper middleware solution,” says Ferenc Pál, chief technology officer of IBM Hungary.

According to a statement from Hungary’s largest system integration specialist, T−Systems, “In the course of creating complex IT solutions, the most complex service activity that requires the greatest degree of responsibility and competence is system integration,

Despite the difficulty of the transition, at some point systems integration can become necessary.

“When small companies start to grow the number of services offered to their partners and clients, they soon face several challenges caused by the heterogeneous systems designed for each of the offered services. These challenges include storing different data in different systems that need to be connected, or – what is even worse – storing the same data in multiple systems, which can lead to loose data integrity,” says Pál.

Once a company or organization decides it is time to take the leap, a serious planning process must begin, involving the systems integrator as a consultant and the various parties who will be affected.

“When designing complex ICT solutions, thorough system technical, architectural and technological planning is a must in order to elaborate the solutions that create business value for clients and are also optimized to meet their demands, IT environment and budget,” according to the T−Systems statement.

According to IBM’s Pál, the planning should involve: A business analyst, who knows: • where the information is and what staff members have access; the dependencies between the systems; the route of information; the

• •

expected workload; and, who are the experts for the various subsystems that will be integrated into one new system.

IT architects, who establish conventions and agree on interfaces.

A project manager, who oversees coordination of all the separate parts.

Partner: Bigger is better Asked why T−Systems would be the best firm to handle a system integration project, Tibor Rékasi, CEO of T−Systems explains: “Probably the most important factor to consider in the case of a big system integration or a complex operation project at a big corporation is the stability of the company realizing the projects. T−Systems Hungary is a dominant player in the Hungarian market, and has decades of experience in system integration through its international network. As part of the Magyar Telekom Group, we can offer a solid guarantee of quality in the realization of projects, and promise to adhere to every single point of the signed contract. Furthermore, the international reach of the company is also an important advantage: Deutsche Telekom is in the background of our operations at an international level, and it is a vital player in regional markets.

Another important factor in choosing a systems integrator is finding a company that can approach a project with an integrated ICT mindset, meeting present and future requirements.

T−Systems Hungary has a uniquely wide portfolio, which spreads from classic IT telecommunications to application development.”

Speaking for IBM, Pál also notes the strength of his parent company, saying: “In addition to experienced consultants and services representatives locally in Hungary, IBM has powerful middleware software ranked as leaders by the biggest analyst companies. IBM connectivity and application integration solutions deliver access to data, applications and information regardless of platform, device or data formats— across both on−premises and cloud environments.”

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Budapest Business Journal | Sept 04 – Sept 17, 2015

T-Systems impacts companies, the market, the community Tibor Rékasi, CEO of T−Systems Hungary, has a bird’s−eye view of the ICT industry in Hungary.

The largest systems integration firm in this country, his company has the support and knowledge of the Magyar Telekom Group to which it belongs. Rékasi shares his views on ICT solutions, the situation in Hungary – and the role played by T−Systems.

A: There is an intensifying shortage of workers in the Hungarian ICT market, and there are two chief reasons for this phenomenon. On the one hand, the lack of appropriate preparation among the younger generation and on the other, emigration abroad of trained professionals. There are many vacancies in the Hungarian IT market, which not only means a loss of income for companies but also missed opportunities for the Hungarian economy.

I believe we need greater cooperation to solve this problem. Young people should be educated to polish their digital skills, and the training should start as early as possible, in order to steer more students toward engineering and the IT sector. When it comes to individual careers, this is the field that will be offering the most opportunities in the coming decades, and this fact should be clear to children and young adults when they are considering what career path to take.

Q

BBJ STAFF

Q

Can you give some examples of complex ICT solutions in which T−Systems is involved?

A: We have been realizing projects recently that not only have an impact on the life of a single company, but on a wider spectrum, the whole community. In terms of complexity it is worth mentioning the bike sharing system of Budapest Bike (BuBi), which is celebrating its first anniversary this September. In only a year’s time, this service has become part of the city, providing a great opportunity for both citizens and tourists to travel short distances. Another great success for us is the electronic travel ticket and pass vending machines around the capital.

Demand for complex ICT solutions is understandably increasing. These systems are required to renew certain community services in many areas, like public transport, health care or services available in the cities. Digital cities are being built all around us, and all types of services closely related to this phenomenon are appearing everywhere.

Q

What about security for complex, integrated systems?

What are the concerns, and the solutions to maintaining digital security?

A: These days, IT security damage can only be minimized and not completely avoided. External factors cannot be shaped, but internal attitudes can be shaped within a company. Minimizing the possible damage depends on an organization’s preparedness and security consciousness. Along with operation of security systems, maintenance, updates and continuous development is also essential, as is analysis and monitoring of data and situations as they occur.

What’s more, in order to possess up−to− date information, we need to prove the occurrence of incidents as well. Doing this requires serious knowledge and know−how, which is not necessarily present within a company.

Tibor Rékasi.

The majority of the companies and organizations are also incapable of answering basic questions in connection with security. Often, a company only realizes how complex their systems are, how unique their operations are and how much data they handle after they begin investigation into the causes behind a concrete incident. In the majority of logging analysis projects realized by T−Systems, our clients cannot even process recently arrived data in a month’s time. In an area changing as fast as IT security, allowing a lag like this is equal to capitulating.

Q

A related issue is corporate risk management. What can be done to minimize damage in the case of a corporate catastrophe like financial meltdown or environmental risk?

A: The majority of corporate risks can be prevented by applying appropriate internal regulations and creating appropriate methodologies, as well as by introducing related info−communication solutions. This is also true for environmental risks. Evaluating risks is closely related to the amount of data available. First we need to consolidate data at a corporation, so that it is easy to interpret and use this information. You cannot expect to be saved by a business intelligence (BI) solution until you have solved the issues of storing, evaluating and using in−house data.

Q

Do you think that Budapest’s startup culture helps drive innovation? How does this

impact the overall IT sector here? Does T−Systems have any involvement with startups?

A: Hungarian engineering knowledge is widely sought−after for a good reason.

Initiatives emerging out of Budapest are impressive, and more and more investors find it is worthwhile to invest in an idea here. One of the most important engines of innovation is info−communication, which is clear by the fact that the majority of startups have an ICT pillar, something that is not restricted to technology businesses today. ICT is making the realization of such initiatives possible, and this can be a catalytic force that helps to reorganize markets and industries.

T−Systems Hungary has an expanded partnership ecosystem, which also includes smaller companies with high added value. The info−communication industry is multifaceted and even a big company like ours cannot know everything. Our task is to choose the best solutions for our projects, to meet the requirements of our clients and serve their needs the best we can.

Our partnerships with almost 1,500 companies and SMEs is proof that we can meet such a broad range of requirements.

Q

There is a growing demand for the brains that are involved in startups.

Programmers and engineers are highly sought after. As one of the larger employers in the sector, do you feel the supply of talent here is still sufficient?

What trends do you see in Hungary’s IT workforce?

What about women’s progress in breaking into the IT sector, which is traditionally a male−dominated world?

Do you see advances by women in the field?

A: I see little advancement in the past few years in this area, but I believe that women will be vital for providing the next generation of workers and leaders in the field. The ICT industry is becoming more and more open. Programming is not going to stay the monopoly of men, as it is natural that a well−qualified woman possesses the same professionalism that is need for an IT job. What is more, there are certain areas, like cooperation and problem solving, where women tend to outperform men, and this is very important.

A report by the professional organization IVSZ reveals that, in 2013, the proportion of women in the ICT sector was 5%. It is not a miracle that few women leaders exist in this profession to provide an example for young girls trying to choose a career path. In the long−run, this can preserve the situation, as the industry is branded as a masculine field, and young girls do not consider this sector a possible choice for a career. For this reason, changes need to be made in school.

Q

Can you give your prognosis for Hungary’s IT sector in general? Do you foresee growth? Are there any particular changes you might expect?

A: Although growth is encoded in the industry, it is also very dependent on internal and external factors. Internal factors include the Hungarian market’s ability to cope with the lack of qualified professionals and our ability to be open towards markets abroad – to think regionally and globally. An important external factor is the appearance of European Union funds in the next financial cycle. These funds are expected to generate ICT developments.

The sector constitutes 10−12% of the GDP of Hungary, and, being a knowledge− intensive industry, it is an outstanding sector regarding added value. ICT is international in many points of view, and requires few resources, which is why Hungary should consider the sector as a breakout opportunity.

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Budapest Business Journal | Sept 04 – Sept 17, 2015

Mining social media for marketing purposes Budapest−based Bamako.

Social provides ‘social listening’ so that companies can learn more about consumers through the billions of messages posted daily on social media.

Number of worldwide social network users (in billions) 2.5 2.0 1.5

LEVENTE HÖRÖMPÖLI-TÓTH

A Time Magazine advertisement once boasted that the company published 50 million words in 1965. Tech experts estimate that it takes Twitter just over eight minutes to generate the same amount. In total, today’s more than two billion social media users worldwide produce about 15 billion pieces of content each day.

Market researchers quickly realized the potential of that crowd. But tools from the pre−internet age are not tailored to find out what customers really need, so Bakamo.Social invented a solution to offer what it calls “social listening.”

The venture, uniting top marketers from Hungary and the U.K., harnesses the intelligence of both computers and human beings to help companies understand what is being said about them and their market on social media.

“Globally there’s so much conversation and information sharing taking place online; all we are doing is reading that with scale and intelligence,” Dan Foreman, shareholder and board member, tells the Budapest Business Journal.

“We take the quantity and quality of conversations happening online and we can correlate that with sales and start to explain what’s going on. More importantly, we can predict what the next big thing will be.”

1.0 0.5 Dan Foreman.

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Figures for 2015-2018 are projections.

Data: Sampled Facebook pages in multiple industries (70,180 branded Facebook pages in Q2 2015) Source: socialbakers.com.

“Trained coders or machines can spot interesting stories.

It’s like watching Neo in the Matrix. You’ve got 50,000 lines of comments exported into excel, and then a pattern is found.”

Dániel Fazekas.

London meets Budapest Foreman has just become chairman of the board in order to take the business to the next level. He says it is a venture where fresh thinking from the east meets knowledge and connections from London. “We have strong skills and great operational resources in Budapest that we can get here at exceptional prices, whereas the English capital offers the network and the clients. Marrying these two together creates a profitable business.”

Foreman should be a good judge of how to get a chunk of the global market worth some $60−100 billion, as he was previously a president at ESOMAR, the main global body for market research companies. In that position, he gained invaluable insight of what’s happening all around the world in terms of gathering business information, and he got to know the key specialists of the industry.

Meeting Dániel Fazekas gave the push to set up Bakamo.Social. Fazekas, who is based in Budapest, brought his decade− long sectoral experience and exceptional talent in technology and analytical thinking.

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“Much of the stuff is repeated, and a lot of it is comment, but trained coders or machines can spot interesting stories.

It’s like watching Neo in the Matrix.

You’ve got 50,000 lines of comments exported into excel, and then a pattern is found. And Dani Fazekas is an expert at extracting that story,” Foreman says.

The process is essentially based on very soft machine learning. Yet, it is inevitable that humans would have to be engaged in the process. “We see the limits of algorithms; that’s why readers are needed.

At the end of the day, computers cannot decide whether love or cynicism is meant by certain remarks. The key is to see the underlying intentions that drive people,” Fazekas adds.

One of the top clients, Adidas, for instance, has always been interested in innovation and growing its market share, and it would like to get the most out of free information on the web.

“Some of them are simple, practical things suggested by fans, like bringing out a specific new product or sponsoring a club, and we give this information

to Adidas. We report every week what people say about the brand in the world.

We are often asked to investigate specific matters such as what might be the reason for certain market trends in a given country,” Fazekas explains.

Real−time monitoring is part of the game, as indicated by Bakamo.Social’s campaign about the Apple watch in cooperation with a radio station in London. “If someone expressed interest and had the right profile, meaning they had enough followers, they would have the opportunity to win an Apple Watch.

We saw an enormous level of online engagement thanks to content sharing and re−tweeting during the radio show,” Foreman says. Indeed, such real−time monitoring gets customers a low−cost way to reach out to a vast number of people.

Customer service and social media Where companies have had to adapt to the new winds of the cyber age is customer care. They had to migrate their conventional customer service call center to staff that can read and understand social media. That’s what happened at firms like Philips, another client of Bakamo.Social.

“These days people wouldn’t phone a hotline, they would drop a line on

Facebook to ask for a manual of an electric shaver and some person in China would send the relevant link even before Philips has the chance to respond. So the role of customer care is not to provide information, but to make sure that that a community of people helping each other are doing it in a way that reinforces the Philips brand,” Foreman says. “But for them to get there, we need to work a lot with them to define their exact role.”

According to socialbakers.com, an agency that tracks social media, Twitter users asked brands more than seven million questions in the first half of this year. This huge level of fan activity pushed firms towards taking the matter seriously. No wonder the overall question response rate on Facebook went up from 5% in 2011 to a record high 76% in Q2 2015.

An example from Wal−Mart highlights how sophisticated customer service can get. In spite of the massive data sets related to the brand, at times conversations could get really specific.

“The other day in a Wal−Mart in Minneapolis, a man complained that one of the lights was flickering in the cheese section. Wal−Mart is dealing with billions of dollars of transactions per week, but they still can instruct an engineer to go and fix that flashing light in the cheese aisle in Minneapolis,” Foreman recalls.

Assignments sometimes involve some unusual situations, as shown by the case of a premium dog food brand.

“A huge number of dogs have their own Twitter account and they actually talk dog English,” Fazekas says. “They even invite each other out for dinner and afterwards they thank the dog food company for the delicious meal. People use this opportunity to express their joy and that’s where we come in to draw conclusions from it.”

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One fifth of GVA provided Stop gambling, you can by digital economy EXPERT OPINION

Hungary’s digital economy constitutes 20% of the whole national economy’s Gross Added Value (GVA), even applying the most conservative calculations, and provides jobs for 15% of those employed in Hungary, research by the ICT Association of Hungary (IVSZ) and research institute Századvég reveals. The narrowly defined Information and Communications Technology (ICT) sector constituted 8.3% of national economy in 2014, and constituted more than 10% of research and development in 2013, the research found.

The Hungarian ICT sector’s performance is outstanding in the region, being among the bests in the European Union, even when considering traditional enumeration methods, a report on the research jointly issued by the two bodies reveals. “IVSZ was not only planning to show again how important the ICT sector is for the Hungarian economy, but also that the ever strengthening digital economy has become one of the most important factor’s in today’s Hungarian economy,” said Tamás Laufer, IVSZ president.

The macroeconomic analysts of Századvég started researching the topic with the hypothesis that digital transformation significantly affects processes in the economy and society, therefore analyzing the narrowly defined ICT sector is increasingly less suitable for determining the scope and reach of the digital economy. The report adds

that the new methodology invented by Századvég has its limitations, and the results certainly underestimate the full effects of the digital economy, yet still give the most exact approximation of recent years.

The research found that digital economy contributed HUF 4.2−4.8 trillion to GVA, or 18.6−20.1% of the total Hungarian national economy. Using the new methodology, the research calculates that between 376,000−417,000 workplaces can be connected to digital economy, either directly or indirectly, providing jobs for 13.6−15.5% of the total number of employees in Hungary.

The ICT manufacturing sector should be regarded as the second greatest exporter in the national economy following the automotive industry, with a HUF 2.3 tln worth of exports, constituting 9.6% of total exports in 2013.

The ICT sector spent more than HUF 1 tln on investments and R&D from 2008− 2013, or 3.8% of total investments in the national economy.

According to the research, the 3.25 rate of employment multiplicator means that employing one person in the ICT sector indirectly creates 2.25 new jobs.

Therefore, the approximately 20,000 vacancies in the Hungarian ICT sector, according to IVSZ calculations, could create some 60,000 jobs if filled, the report noted.

The report says that the greatest advantage of the new methodology is that it covers the indirect effects of the digital economy in greater detail than ever before.

Internet Hungary to host the industry’s cream of the crop LEVENTE HÖRÖMPÖLI-TÓTH

It all started back in 2000 when founder Ákos Csermely had the idea that the internet was growing so fast that the scope of his annual Media Hungary conference was too limited and the Web deserved its own gathering. Since then Internet Hungary has solidified its presence in the events’ calendar. In fact, it has become the core forum not only for industry professionals in the country, but also for experts from related sectors.

This year the date to mark for interested participants – whose number normally exceeds 1,600 – is September 29−30. The series of presentations offered in those two days aims at covering every hot topic in the industry by analyzing the international and domestic trends of the digital ecosystem, investigating the impact of the World Wide Web on competitiveness, the principal of equal opportunities and the quality of life.

The agenda is crammed with a stunning number of presentations. Five rooms will host Hungarian and foreign speakers in parallel, literally all day long without

interruption. Quantity will surely not dilute quality, though. Speeches are required to have a serious novelty factor, meaning that Internet Hungary will be the first place they are ever delivered.

Topics range from the sharing economy to blogs and business strategies, but exceptional ones such as neuromarketing or the tools of the so−called attention economy will be covered too.

You can also take it for granted that you will get to meet or listen to the main representatives of telcos, IT, web media, and the digital economy in Hungary.

Senior executives of SMEs leading the digital transformation revolution, top consultancies, HR firms and e−commerce companies will be there as speakers or visitors as well, along with senior officials from government ministries, major research institutions and public bodies.

The venue is Hotel Azúr, Siófok.

Considering the above, if you have anything to do with the internet in terms of business, you will surely get something out of the information shared in the seminars or during the networking that follows that can help you discover new paths in your professional or personal life.

choose fixed gas prices Zombor Smaraglay Pricing Team Manager MET HUNGARY LTD.

Have you ever thought of this: when you buy gas to cover your company’s demand, your decision-making process is similar to an investment decision on the stock exchange?

W

e all know the symbols of the traditional stock exchange, the bull and the bear are part of our investment life, in which you have several choices. Besides real estate portfolios or insurances, you can opt for bonds or stocks.

Investing in bonds is more predictable, buying stocks can be a choice with lots of profit, but with a higher risk of losses as well.

These seem to be obvious statements; however it is not so evident that the same rules apply to gas procurement. Either you choose the safe way with fixed gas prices with foreseeable costs, or you decide for a pricing model based on oil, or other indexed formulas that have a higher risk with all the up- and downsides.

Gas, as a commodity, has a long history and so has the pricing of this good.

The awakening of a dynamic market The international gas industry, affected by countless factors, has been changing radically throughout the last decade, reflecting the natural development of maturing markets. The acceleration of trading, rising competition, steep climb of liquidity and most importantly the business requirement to cover customer needs can all be observed – not only in the surrounding countries, but also in Hungary.

However, to understand what exactly we mean in gas trade by finding the right solution in order to satisfy customer needs, we need to reach back to the end of the previous century in order to see where the development started. It is hard to imagine that even such a seemingly plain product as fixed-price natural gas carries the whole market evolution of the past decade and can comprise complex hedging structures.

One of the main sources of Hungarian gas supply has been arriving indirectly from Russian GAZPROM through the Russian– Hungarian joint venture Panrusgaz since 1996, a company that has exported 6 to 11 billion cubic meters of natural gas each year.

The price formula of this long-term contract – expired with a make-up possibility this year in July – was mainly indexed to oil derivatives (fuel and gasoil).

Initially natural gas was a replacement product for fuel oil and gasoil as most of the power plants and even households

functioned – or were able to function – with these resources as an alternative. The market of natural gas was undeveloped and pricing was unclear, while oil had a rather transparent market. Therefore Gazprom linked natural gas to oil in order to mitigate the risk of those who decided to consume gas as an alternative to oil.

Booming market with booming competition Since the early 2000’s, virtual trading points (gas stock exchanges), driven by demand and supply, have been popping up like mushrooms all over Europe: such as the Netherland-based Title Transfer Facility (TTF) in 2003, or five years later the Germany-based natural gas hub NCG, and the Italian GME (Gestore Mercati Energetici), accelerating competition and easing the access to a wider range of resources.

Close to Hungary, the Austrian Central European Gas Hub (CEGH) was established in 2013, where CEGH operates a Virtual Trading Point (CEGH-VTP) or VTP. On this platform, a whole variety of natural gas sources are traded every day up to 5 billion cubic meters per month.

Fixed gas price as a form of risk management In the gas business, similar to other businesses, we at MET face a very strong customer need: the need to minimize risks and to completely avoid unnecessary ones.

What kind of risk is a company usually willing to take? Typically, they accept the risk of demand or operational related threats, but usually do not undertake the risk of activities that fall out of the scope of the company. Companies prefer mitigating risks over generating them, leading us to believe that most companies seek opportunities to match their cost structures with their revenue streams in terms of both price formula and denomination.

As trading has accelerated during the past couple of years, liquidity shot up and spread between markets has shrunk; hedging and risk management have become more and more effective. As a result of this process, fixed gas prices could become highly competitive, and no wonder many of our consumers tend to prefer them over indexed formulas.

So opting for fixed prices instead of indexed formulas is a decision over risks which you probably do not want to take.

About us MET Group is an innovative, Switzerlandbased group of companies, focused on multi-commodity wholesale and trading with activity in natural gas, power, oil and power generation. Our success is built on our commitment to understand our partners’ needs and to structure attractive tailormade business solutions. MET Group’s mission is to become a leading market player by implementing innovation in the traditional European energy markets. For more information: www.met.com.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

CHRISTIAN KESZTHELYI

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Budapest Business Journal | Sept 04 – Sept 17, 2015

Home-made drone stays above the competition

Photos: Jessica Fejos

The Skyviewair can take higher quality images than a typical drone, guaranteeing its owner and maker good business from architects and government agencies.

ZSÓFIA VÉGH

An aerial tour of Budapest’s major sights, a bird’s−eye view image of Hungary’s ski tracks or a panoramic photo of the Hungaroring: These images allow you to view Hungary from an angle thus far unfamiliar. The maker of the shots is Skyviewair, one of the leading Hungarian firms specialized in aerial photos and videos, using a drone purpose built by the company founder and manager, Attila Pethe.

A former radio controlled helicopter pilot and photographer, Pethe decided to build his own computer−operated drone with the aim of cutting costs. Yet by the time he finished, the price tag – around HUF 3.5 million – was nearly equal

Above, Attila Pethe flies his home-made drone. Far right is a view from underneath the unmanned aircraft. to that of a prebuilt model. You never stop developing, because technology is changing so quickly, Pethe notes.

What makes his SVA−X8 copter unique is the arrangement of its rotors. Unlike the typical octocopters, which have all their eight rotors facing above, this machine has four placed on the down side of the arms.

This arrangement allows for shorter arms and a better and wider angle for shots, but it doesn’t affect the copter’s weight bearing capacities. This copter and the camera are controlled separately, so the

cameraman can focus on the composition.

And the camera is of a higher quality than a typical drone camera. An eight− hour shoot with the SVA−X8 usually costs around HUF 150,000, depending on the complexity of the job. This is markedly less expensive than an aerial photo shoot with a helicopter, in which an hour’s rent of the aircraft alone will cost the same amount.

So an octocopter is both a cheaper alternative to traditional airplane photography, and easier to control.

The high quality images are mainly in

demand from architectural studios and technology firms that use the images for planning and design. This corporate clientele and some state work make up 90% of Skyviewair’s work, as this is the circle of customers willing to pay most for its services. The company took images of Dagály spa and bath for the architects designing the new swimming pool complex for the 2017 world championships. This year, Skyviewair took a stock of aerial shots of Hungarian ski tracks, and a 360−degree view of

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cameras for shooting photos and videos – it all adds up.

Ready−made models of similar size and capacity are equally expensive, but international demand continues to soar. A report by U.S. market researcher MarketsandMarkets put the value of the global drone market in 2014 at $15.22 mln and said it would reach $1.27 billion by 2020.

Drones are not regulated in Hungary, but a law is due by next year. Pethe said he hopes it will allow for a more professional market, by weeding out the hobbyists.

PROMOTION

Smart Phones, Heavy Headed Humans The weight of four bowling balls push down on your spine when you check your phone On average we are browsing, texting, tapping, reading our smart phones an hour a day. That’s sixty minutes with your head tilted, gazing at a tiny screen level with your navel. The posture is anything but relaxed, as it puts some 30 kg extra weight on your spine – the equivalent of four bowling balls! Let’s do the math. Your head weighs a mere 5-7 kg. Look down and tilt forward just 60 degrees and gravity pulls on your spine with the force of up to 30 newtons.

Smart devices make life easier but also more sedentary. Are you spending more time with your phone and less in the gym or the great outdoors? You not only increase the chance of cardiovascular

disease and obesity but also strain your muscles and tendons. Tilting your head forward for a long time results in permanent bad posture, stressing your spine and giving your neck, shoulders and back muscles a painful cramp.

Various forces are in play with every movement of your vertebrae: vertical compression, shear force with bending, and rotation to a lesser extent. Tilting your head increases shear forces and makes your ligaments taut, forcing you

Good to Know • The spine is made up of 33 vertebrae and 100 joints, held together by 220 ligaments and moved by 120 individual muscles.

• The aggregate length of the disks that connect your vertebrae comprise up to one fourth of the length of your spine. Disks become less supple over time, a reason why we get shorter with age. On the other hand, astronauts are 3 percent taller on average when returning from the zero gravity of outer space to planet Earth.

• The spine is capable of four basic movements: bending forward, backward and sideways, and rotating along its vertical axis.

• As a result of sedentary lifestyle, 80 percent of the population in the developed world seek medical help with a spine condition at least once in a lifetime.

• Checking your posture is easier than you think: you are sitting or standing properly if your ears are right above your shoulders.

into a bad posture. Overloading your neck and back results in degenerative wear and tear in the long run, affecting the entire spine, which is a delicate and comprehensive system.

DOCTOR’S ORDERS “Should you experience frequent headaches, acute pain in your neck, upper arms, back or lumbar region, especially if the latter radiates down into your legs, you should immediately seek medical help,” explains Dr. István Berkes, orthopedic and sports medicine specialist at Dr. Rose Private Hospital.

“Unsubstantiated pain and seemingly random discomfort call for expert diagnostics and technical background to pinpoint the root cause. If the pain persists, let alone aggravates, the patient needs an accurate diagnosis to avoid mistreatment. In order to fend off chronic pain you take on a bad posture, which in turn worsens your condition,” concludes Dr. Berkes.

Dr. Rose prof. Dr. Berkes István

TEL: (+36) 1 377-6737 WEB: www.drrose.hu ADDRESS: Széchenyi square 7/8, 1051 Budapest

NOTE: ALL ARTICLES MARKED PROMOTIONAL FEATURES ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

Lake Balaton during the Kékszalag sailboat race.

The investment in the octocopter was returned in roughly a year; with very few drones of similar capabilities on the market, the company has enough orders to be profitable. Still, drones of this scale are pricey toys. A set of batteries – enough to keep the machine airborne for 15 minutes – costs HUF 60,000 and lasts less than a year. Spare parts shipped from abroad (especially those which turn out to be useless in the building process) can be costly as well. You’ll need separate

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Budapest Business Journal | Sept 04 – Sept 17, 2015

Startup formula: Think regional to go global Imre Hild, an opinion leader in the Hungarian startup ecosystem, says that CEE startups stand a better chance of gaining recognition in the world market if the region works together.

LEVENTE HÖRÖMPÖLI-TÓTH

Hungarians have enough intelligence to come up with new, creative ideas, which is why this country is fast becoming a hub for startups. But what many new enterprises lack is the ability to take their ideas to the global market. Fortunately, there is help at hand.

“Hungarian startups desperately need competence from abroad, but most celebrated mentors will come only if they get well paid. It makes no sense to pay local business consultants or tendering firms, that competence is what’s needed,” Imre Hild points out to the Budapest Business Journal. “Gathering world−class human resources under the roof of an accelerator is necessary, but costly.”

Hild is one of the key figures in the local startup ecosystem. His venture, Global Platforms helps promising projects develop their business in order to take it to the next level; that is, the world stage.

“Many times it’s not money that startups need, but the right pro, an international sales expert, for instance, who can get their product launched in foreign markets. We

“The Danube Region Initiative is a great example of how Europeans should act in order not to lag behind the global competition.”

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“Many times it’s not money that startups need, but the right pro, an international sales expert, for instance, who can get their product launched in foreign markets. We assess what startups have, and where they want to get to, and we connect them with a member of our specialist network from New York to Singapore.” assess what startups have, and where they want to get to, and we connect them with a member of our specialist network from New York to Singapore,” Hild says.

The hopefuls The latest hopefuls that could make use of Global Platforms’ resources are some of those that were funded by the CEED Tech EU program operated by Digital Factory, an accelerator for incubation, in the first half of this year. The best three projects received €200,000 on top of the €30,000 that all were given in the first place.

SpyMoz, which offers sophisticated SEO analyses, is flirting with an opportunity in Singapore, while Laborom (My Lab) and its diabetes self−help tool frequents conferences successfully.

And car maintenance as we know it should change for good if AzAutom. hu (My Car) makes its breakthrough.

According to founder György Tardy, it would like to offer an early warning system for drivers that signals every technical error even before it appears on the dashboard. Another idea is to make the car communicate directly with the service provider for due scheduled maintenance. (AzAutom is also building a network of reliable providers that would be part of their service package.) To close the circle, repair parts could be bought in AzAutomʼs webshop.

Imre Hild of Global Platforms.

V4 reinterpreted

Joining forces can create critical mass

“There will be a lot more capital available to fund projects like that next year,” Hild notes. What matters though is to catch up with American competitors. One way could be to rely on iHub, a European initiative that makes so−called FIWARE software available. Since startups’ technical profiles often overlap, big corporations put software developed by them in digital depositories for free use.

The number of such items is relatively moderate, but the European Union is striving for joint action in order to speed things up.

Hild sees the importance of using each other’s strengths in Europe as inevitable.

“The Danube Region Initiative is a great example of how Europeans should act in order not to lag behind the global competition.” Accordingly, four cities, namely Budapest, Vienna, Brno and Bratislava have realized that if they support the startups of each other, they can make use of their respective vertical competences. The Visegrád Four (minus Poland) seems ready for action.

“It’s got to be clear that places like Singapore are ahead of us. The government there has 24 billion Singaporean dollars (SGD) to fund innovative young enterprises, and there’s an enormous level of engagement on the part of those involved in such programs,” Hild explains.

Things happen at an accelerated pace, too. “If they deem your project desirable for the country, you will have your work visa for establishment in four hours and will get SGD 500,000 to get started. The only requirement is to grant a 30% stake of your company to a Singaporean national, and that your headquarters must operate in the country for real.”

The only way to match this sort of development locally is by joining forces.

“Hungary does not exist on her own. But if we say ‘CEE’, then we already have a critical mass that makes it worth coming here. On the part of the startups the openness is there, and the same is true of the big players involved. Only systematic work towards this direction will translate into success, just as in Israel or Finland,” Hild says.

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Budapest Business Journal | Sept 04 – Sept 17, 2015

Systems integrators INTEGRATION OF OWN PRODUCTS OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

Tibor Rékasi – –

1117 Budapest, Budafoki út 56.

(1) 452-1400 (1) 452-1401 info@t-systems.hu

SOFTWARE

HARDWARE

UNIX

WINDOWS SERVER

OPERATING SYSTEMS OF SERVERS

NOVELL

MIXED

SOFTWARE

TYPE OF SYSTEM INTEGRATION

HARDWARE

MAJOR CLIENTS IN 2014

MIXED

CONSULTING

IT SECURITY

SOFTWARE DEVELOPMENT

ERP

SERVICES

SAP SERVICES

COMPANY WEBSITE

TOTAL NET REVENUE IN 2014 (HUF MLN) IN H1, 2015 (HUF MLN)

RANK

Ranked by total net revenue

T-SYSTEMS MAGYARORSZÁG ZRT. www.t-systems.hu 1

2

3

69,392

»

INVITEL TÁVKÖZLÉSI ZRT. www.invitel.hu

HEWLETT-PACKARD HUNGARY KFT. www.hp.com

4

IBM HUNGARY KFT.

5

EURO ONE COMPUTER ZRT.

www.ibm.com/hu

www.euroone.hu

46,093

»

32,700

»

18,730

»

14,621

»

»

–

Magyar Telekom Nyrt.

(100) –

–

»

– Mid Europa Partners (51), Matel Holdings Limited (49)

David Blunck Andrea Rába, Szilárd Szobol –

2040 Budaörs, Puskás Tivadar utca 8–10.

(1) 801-1500 (1) 801-1501 info@invitel.co.hu

»

– Hewlett-Packard Central Eastern European Holding GmbH (99.80), HewlettPackard Gouda B.V. (0.20)

Gábor Gonda – –

1117 Budapest, Alíz utca 1.

(1) 229-9999 (1) 229-9000 info@hp.com

»

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

Péter Szalay – –

1117 Budapest, Neumann János utca 1.

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

»

Bravogroup Holding Kft. (65), CEWEB Kft. (35) –

Árpád Kucska – –

1145 Budapest, Újvilág utca 50–52.

(1) 358-6350 (1) 358-6359 info@euroone.hu

4iG Nyrt. (78.20), HS Board Kft. (16)Béla Zsolt Tóth (5.70) –

Gábor Somlyai, -XGLW +HJHGŝV Tamás Koppány Ferenc Turcsán

1037 Budapest, Montevideo utca 8.

(1) 270-7600 (1) 270-7679 info@humansoft.hu

3pWHU 'H]VŃ 6]DEy Sándor Kulcsár –

2040 Budaörs, Puskás Tivadar út 14.

(1) 371-8000 (1) 371-8001 info@snt.hu

»

»

»

»

»

»

»

»

»

»

»

»

»

–

–

–

–

–

»

–

–

–

–

–

–

»

»

»

»

–

)|OGPŝYH lésügyi Minisztérium, IT Services Hungary Kft., EGIS Gyógyszergyár Zrt., Wizz Air Hungary Kft, Állami Egészségügyi Ellátó Központ

HUMANSOFT KFT. www.humansoft.hu 11,830 4,700

6

7

S&T CONSULTING HUNGARY KFT. www.snt.hu

8

SAGEMCOM MAGYARORSZÁG KFT. www.sagemcom.hu

9

DELTA IT ZRT.

10

SYNERGON INFORMATIKA NYRT.

www.delta.hu

www.synergon.hu

11

INTER-COMPUTER-INFOR ZRT. www.intercomputer.hu

7,591

»

7,439

»

4,380

»

4,167

»

4,044

»

–

»

»

»

»

–

–

– S&T AG (100)

»

»

»

»

»

»

»

»

»

»

»

»

»

»

»

– Sagemcom Energy & Telecom SAS (100)

Zoltán Dubi – –

1037 Budapest, Montevideó utca 16/A (1) 399-1020 (1) 399-1021 info@sagemcom.hu

–

–

–

»

»

»

»

–

»

»

Individuals (100) –

Zsolt Bártfai, István Hartmann – –

1033 Budapest, Szentendrei út 39–53.

(1) 437-5200 (1) 437-5299 info@delta.hu

–

»

»

(100) –

Attila Dobos – –

1108 Budapest, Kozma utca 2.

(1) 399-5500 (1) 370-2869 info@synergon.hu

Inter-ComputerHolding Kft. (100) –

Tamás Molnár János Bence Bajzáth –

1118 Budapest, Gombócz Z. utca 12.

(1) 411-3720 (1) 411-3749 info@intercomputer.hu

–

–

–

–

–

»

–

–

»

–

»

»

»

–

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17

DIMENSION DATA HUNGARY KFT. www.dimensiondata.com

18

CONET KFT.

19

HOSTLOGIC KFT.

20

AQUIS INFORMATIKA ZRT.

21

KĂœRT ZRT.

22

MONTANA KNOWLEDGE MANAGEMENT KFT.

www.conet.hu

www.hostlogic.hu

www.aquis.hu

www.kurt.hu

www.montana.hu

23

IFS HUNGARY KFT. www.ifsworld.com

2,759

Âť

1,934(1)

Âť

1,619

Âť

1,591

Âť

1,193

Âť

1,188

Âť

1,058

Âť

686 343

–

MAJOR CLIENTS IN 2014

SOFTWARE

www.accenture.hu

Âť

–

HARDWARE

16

ACCENTURE TANĂ CSADĂ“ KFT.

2,994

Âť

–

Istvån Bånlaki (52.50), Tibor Gombos (47.50) –

IstvĂĄn BĂĄnlaki, Tibor Gombos Krisztina Mikusik KissnĂŠ Helga SzĂĄntĂł

1152 Budapest, Telek utca 7–9.

(1) 470-5000 (1) 470-5011 info@nador.hu

Âť

–

– Qualysoft Holding Ltd. (100)

Attila Simon Tamås Zimånyi –

1118 Budapest, RĂŠtkĂśz utca 5.

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

–

Starpool Holding Hungary Kft. (Âť), GĂĄbor JuhĂĄsz (Âť) Freed Rebecca Lee (Âť)

PÊter Freed, Gåbor Juhåsz – –

1183 Budapest, *\|PUĹƒL ~W (1) 666-1600 (1) 350-5660 sales@ dunaelektronika.com

Âť

Synergon Informatika Nyrt. (100) –

Dåvid Csaba 3DSS -y]VD – –

1108 Budapest, Kozma utca 2.

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

Âť

– Accenture International S.A.R.L. (), Accenture Minority I B.V. ()

Peter Skodny – –

1088 Budapest, Råkóczi út 1–3.

(1) 327-3700 (1) 266-7709 Info_budapest@ accenture.com

IstvĂĄn Simon, TamĂĄs NĂŠmeth TamĂĄs NĂŠmeth LĂĄszlĂł Demeter

1117 Budapest, Budafoki Ăşt 60.

(1) 482-9500 (1) 482-9501 hu.info@eu.didata.com

–

–

–

–

–

Âť

Âť

–

ADDRESS PHONE FAX EMAIL

UNIX

www.sri.hu

Âť

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

WINDOWS SERVER

SYNERGON INTEGRATOR KFT.

3,655

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN NOVELL

15

www.dunaelektronika.com

–

INTEGRATION OF OWN PRODUCTS

MIXED

DUNA ELEKTRONIKA KFT.

–

OPERATING SYSTEMS OF SERVERS

SOFTWARE

14

Âť

–

TYPE OF SYSTEM INTEGRATION

HARDWARE

www.qualysoft.hu

3,990

MIXED

QUALYSOFT ZRT.

CONSULTING

13

Âť

IT SECURITY

www.nador.hu

4,001

SOFTWARE DEVELOPMENT

NĂ DOR SYSTEM HOUSE KFT.

ERP

12

SERVICES

SAP SERVICES

COMPANY WEBSITE

Budapest Business Journal | Sept 04 – Sept 17, 2015

TOTAL NET REVENUE IN 2014 (HUF MLN) IN H1, 2015 (HUF MLN)

RANK

26 3

Âť

Âť

Âť

Âť

–

Âť

Âť

Âť

Âť

Âť

Âť

–

Âť

Âť

–

–

Âť

–

– Dimension Data Holdings Nederland B.V. (100)

–

–

–

Âť

Âť

Âť

Âť

–

Âť

Âť

Endre Nagy (50), EndrÊnÊ Nagy (50) –

Endre Nagy, EndrÊnÊ Nagy – –

1111 Budapest, Budafoki út 9–11.

(1) 467-2060 (1) 467-2070 conet@conet.hu

–

–

–

(100) –

PĂŠter FĂĄrizs, ZoltĂĄn GĂśrbics Csaba Angelmayer Attila MolnĂĄr

1134 Budapest, VĂĄci Ăşt 35.

(1) 237-1730 (1) 350-4113 info@hostlogic.hu

Âť

Âť

Âť

–

–

Âť

Judit Steidl Jnr. (100) –

Judit Steidl Jnr. – –

2051 BiatorbĂĄgy, TĂłpart Ăşt 65.

(1) 436-3000 (1) 436-3100 info@aquis.hu

Jånos Kßrti (41), Såndor Kßrti (40.70), József Kmetty (17.50), other individuals (0.80) –

-y]VHI .PHWW\ Katalin BotyĂĄnszky GĂĄbor FabiĂĄnyi

2040 BudaĂśrs, SzabadsĂĄg Ăşt 301.

(1) 424-6666 (1) 228-5414 kurt@kurt.hu

Pål Vadåsz – –

1118 Budapest, RĂŠtkĂśz utca 5.

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

Zsolt Weiszbart – Gåbor Halåsz

1132 Budapest, Våci út 22–24.

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

Euronics, Vincotech HungĂĄria Kft., Chemark Kft., Sole-Mizo Zrt.

–

–

–

Âť

–

Vodafone, Audi Hungary, Pannon Egyetem

–

–

–

–

–

–

–

–

–

–

–

Âť

–

–

Âť

–

–

–

– Yes Investment S.a.r.l.

(100)

–

Budapest Airport Zrt., Szentkirålyi à svånyvíz Kft., HAJDU Csoport, ANY Biztonsågi Nyomda Nyrt., FÉMALK FÊmÜntÊszeti Ês AlkatrÊszgyårtó Zrt., LAKICS GÊpgyårtó Kft.

–

–

–

–

–

– IFS WORLD AB- IFS CEE (100)

(1) Data of business year Jan. 1, 2014-Sept. 30, 2014.

7KLV OLVW ZDV FRPSLOHG IURP UHVSRQVHV WR TXHVWLRQQDLUHV UHFHLYHG E\ 6HSW DQG SXEOLFO\ DYDLODEOH GDWD 7R WKH EHVW RI WKH %XGDSHVW %XVLQHVV -RXUQDO¡V NQRZOHGJH WKH LQIRUPDWLRQ LV DFFXUDWH DV RI SUHVV WLPH While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madåch Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

WWW.BBJ.HU

27

3

Budapest Business Journal | Sept 04 – Sept 17, 2015

Software developers NO. OF FULL-TIME EMPLOYEES ON AUG. 1, 2015 OF THESE, FULL TIME SOFTWARE DEVELOPERS

RESALE

MAJOR CLIENTS IN 2014 CONSULTING

SOFTWARE PRODUCTS

DISTRIBUTION OF OWN PRODUCTS

SOFTWARE RELATED ACTIVITIES

INSTALLATION

14,340(1) 7,559(2)

MAIN EXPORT DESTINATIONS

(1)

SOFTWARE EXPORT IN 2014 AS A PERCENTAGE OF TOTAL REVENUE (%)

TOTAL NET REVENUE IN 2014 (HUF MLN) IN H1, 2015 (HUF MLN)

COMPANY WEBSITE

NET REVENUE FROM SOFTWARE DEVELOPMENT (HUF MLN) IN 2014

RANK

Ranked by total net revenue from software development

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

740 675

– evosoft GmbH (100)

PĂŠter VĂĄrady, CEO Gernot Kral, CFO ZoltĂĄn GĂśnye

1117 Budapest, Kaposvår utca 14–18.

(1) 381-6400 (1) 381-6101 sales@evosoft.com

EVOSOFT HUNGARY KFT. www.evosoft.hu 1

2

13,978

SYSDATA PSE KFT. (PREVIOUSLY SIEMENS PSE KFT.)

1,611(1)

www.sysdata-pse.com, www.pse.hu

1,698(1)

Âť

97

Germany

–

Siemens

Âť Âť Âť Âť

70

Austria, Germany

Âť

Siemens

–

–

Âť Âť

à kos Szekendy (100) –

à kos Szekendy – –

1143 Budapest, Gizella út 51–57.

(1) 471-3000 (1) 471-3002 contact@sysdata-pse.com

–

NEXONbĂŠr, NEXONtime, NEXONcafe, NEXONhr, NEXON_ PORT

Âť

–

216 31

Individuals (100) –

SzilĂĄrd Ocskay Judit Nyeste Katalin HĂŠray

1138 Budapest, VĂĄci Ăşt 186.

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

Invitel, MNKH, HEINEKEN, NISZ, VASIVĂ?Z, CentralDrinks, BricoDepot Romania

85 57

Individuals (100) –

Csaba Rozenberszki Ilona RĂŠtai RĂłnyainĂŠ Gergely Lakatos

1038 Budapest, RĂĄby MĂĄtyĂĄs utca 7.

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

Individuals (63), Volån Elektronika Zrt. (22.90), Alsó-Keszi Kft. (14), Carolinainvest Kft. (0.10) –

Kålmån Faur Zoltån Komora –

1113 Budapest, Karolina Ăşt 65.

(1) 255-3939 (1) 209-1477 info@mve.hu

72 16

Tibor Kulcsår (97), shareholders (3) –

Tibor KulcsĂĄr (UQĹƒ 3DS –

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

–

60 51

Protomix Zrt. (55) ZoltĂĄn MadĂĄr (21.43) Ivanka Mader s.r.o.

(23.57)

Zoltån Madår Andrås Sßli –

1087 Budapest, KĂśnyves KĂĄlmĂĄn kĂśrĂşt 48-52.

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

Individuals (100) –

Såndor Dankó Anita Jakucs TÜrÜknÊ –

1117 Budapest, Budafoki Ăşt 209.

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

NEXON KFT. www.nexon.hu 3

4

5

6

R&R SOFTWARE ZRT. www.rrsoftware.hu

LIBRA SOFTWARE ZRT. www.libraszoftver.hu

KULCS-SOFT SZĂ MĂ?TĂ STECHNIKA NYRT.

1,550

3,243 1,681

–

1,384

1,777 672

3.10

1,269

1,149

1,377 584

1,149 665

–

0.20

www.kulcs-soft.hu

7

GREPTON INFORMATIKAI ZRT.

700

928 450

9

UNIT4 CODA HUNGARY KFT.

www.ifsworld.com

11

MULTISOFT KFT. www.multisoft.hu

Romania, Slovakia, USA

Kulcs-Ăœgyvitel, Kulcs-IktatĂł, Kulcs-WbĂĄruhĂĄz, Kulcs-SzĂĄmla, KulcsKĂŠszlet, Kulcs-KĂŠszlet ĂŠs SzĂĄmla, Kulcs-BĂŠr, Kulcs-Egyszeres, Kulcs-KĂśnyvelĂŠs, Kulcs-TĂĄrgyi, KulcsAutĂł, SzĂĄmlĂĄzni JĂł, SzĂĄmlĂĄzni KĂŠnyelmes, SzĂĄmlĂĄzz Most, %L];SHUW .XOFV )HOKĹƒ

Âť

–

Allianz HungĂĄria Zrt., Magyar Telekom Nyrt., Vodafone MagyarorszĂĄg Zrt., Telenor MagyarorszĂĄg Zrt., Budapest Bank Zrt.

–

Âť Âť

13 10

– UNIT4 Business Software Holding B.V. (100)

Tamås Wehring – –

1031 Budapest, ZĂĄhony utca 7.

(1) 268-1223 (1) 268-1225 contact.hu@unit4.com

– IFS WORLD ABIFS CEE (100)

Zsolt Weiszbart – Gåbor Halåsz

1132 Budapest, Våci út 22–24.

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

Gåbor Kelemen (73), Judit Gyenes KelemennÊ (27) –

GĂĄbor Kelemen TamĂĄs Kelemen DĂłra Bertalan

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

–

Âť

607

607 378

Âť

Finland, Japan

Âť

Magyar Telekom, Magyar Posta, KITE, Ecolane, FB Triangle

439

601 381

Âť

Âť

Âť

Âť

–

20 5

67 16

www.unit4.hu

IFS HUNGARY KFT. 10

Libra6i, Libra3s

49

Switzerland, Germany

ITWARE KFT. www.itware.hu, www.createsmartapp.com

–

MVM Partner, VolĂĄn companies, water utility and city management companies

7

www.grepton.hu

8

Romania, FusionR ERP, FusionR Croatia, BSS, FusionR UK, Austria, Utility, FusionR SFA, Angola, VERK/400, cDMS Cyprus

343

686 343

–

–

IFS Applications

Budapest Airport Zrt., Szentkirålyi à svånyvíz Kft., HAJDU Csoport, ANY Biztonsågi Nyomda Nyrt., FÉMALK FÊmÜntÊszeti Ês AlkatrÊszgyårtó Zrt., LAKICS GÊpgyårtó Kft.

332

971 534

100

Austria

Âť

Philips

WWW.BBJ.HU

918 604

www.trilobita.hu 162

13

SALDO PÉNZĂœGYI TANĂ CSADĂ“ ÉS 14 INFORMATIKAI ZRT.

154

162

Âť

984 489

Âť

–

www.saldo.hu

HUMANSOFT KFT.

15

VT-SOFT KFT. 16

http://vtsoft.unit4.hu

ALERANT ZRT. NR www.alerant.hu

NR

BALABIT-EUROPE KFT. www.balabit.com

EVOLINE KFT. NR www.evoline.hu

GRAPHISOFT SE ZRT. NR www.graphisoft.com

IBM HUNGARY KFT. NR www.ibm.com/hu

NR

LOGMEIN KFT. www.logmein.com

132

38

639 292

Âť

Âť

Âť

Âť

Âť

Âť

MICROSOFT NR HUNGARY KFT. www.microsoft.hu

NR

P92 IT SOLUTIONS KFT.

NR

QUALYSOFT ZRT.

www.p92.hu

www.qualysoft.hu

Âť

Âť

Âť

REVOLUTION NR SOFTWARE KFT. www.revolution.hu

NR

SAP HUNGARY KFT. www.sap.hu

Âť

Âť

SYNERGON NR INTEGRATOR KFT. www.sri.hu

Âť

1,273

Âť

2,826

Âť

95

Âť

8,901

Âť

18,730

Âť

6,169

Âť

13,269

Âť

1,323

Âť

3,990

Âť

719

Âť

18,407

Âť

2,994

Âť

0.68

–

Âť

Âť

Âť

Âť

Axel Springer Kft., SPIE HungĂĄria .IW )ĹƒNpW V] .IW .RPWiYKĹƒ =UW

–

)|OGPĹ?YHOpVÂ J\L MinisztĂŠrium, IT Services Hungary Kft., AgromAX, DoQ, Mind- EGIS GyĂłgyszergyĂĄr TheGapp, ASIR/PĂ IR Zrt., Wizz Air Hungary Kft, Ă llami EgĂŠszsĂŠgĂźgyi EllĂĄtĂł KĂśzpont

–

Unit4 BÉR, Unit4 TB, Unit4 Cafe, Unit4 ToborzĂĄs, Unit4 0XQNDLGĹƒ

www.humansoft.hu 11,830 4,700

0DJ\DU /DSWHUMHV]WĹƒ Zrt., MVMI Informatika Zrt., 7UL*UiQLW )HMOHV]WĹƒ =UW Linamar Hungary Zrt., Lapcom Zrt., UniCredit Bank Hungary Zrt.

Âť

–

–

DISTRIBUTION OF OWN PRODUCTS

–

Saldo Creator integrated system

RESALE

Âť

TriDoc standard document management system, TriDoc enterprise document management system, 7UL:RUNĂ RZ 7UL3URMHFW MiBio, Kardiotox

TRILOBITA INFORMATIKAI ZRT.

Hungarian Parliament, municipalities, MOL

CONSULTING

–

TERC V.I.P. (GOLD, SILVER, BRONZ) Ă–nkĂśltsĂŠg, TERC-ETALON

MAJOR CLIENTS IN 2014 INSTALLATION

SOFTWARE EXPORT IN 2014 AS A PERCENTAGE OF TOTAL REVENUE (%) –

SOFTWARE PRODUCTS

1037 Budapest, Montevideo utca 8.

(1) 270-7600 (1) 270-7679 info@humansoft.hu

29 2

– UNIT4 Business Software Holding B.V. (100)

Tamås Wehring – –

1031 Budapest, ZĂĄhony utca 7.

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

27 VTA

AMCS Kft. (100) –

Tamås Szabó – –

1117 Budapest, Infopark sĂŠtĂĄny 1.

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

– BalaBit IT Security Deutschland GmbH (), BalaBit S.a.r.l. ()

=ROWiQ *\|UNĹƒ – –

1117 Budapest, AlĂ­z utca 2.

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

Âť

Ecomatic Kft. (Âť), CSM Holding Kft. (Âť) evopro systems engineering GmbH (Âť)

PÊter TÜrÜk – –

1116 Budapest, +DXV]PDQQ $ODMRV XWFD (1) 279-3970 (1) 279-3971 sales@evoline.hu

Âť Âť

– Nemetschek AG (100)

Viktor VĂĄrkonyi GĂĄbor SvĂŠd Ă kos Pfemeter

1031 Budapest, ZĂĄhony utca 7.

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

Âť Âť

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

PÊter Szalay – –

1117 Budapest, Neumann JĂĄnos utca 1.

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

– Logmein Ireland Holding Company Ltd. (100)

Lívia Kovåcs, Timothy James Ewing – –

– Microsoft Corp.

(100)

Gabriella Szentkuti – –

József Molnår (100) –

József Molnår – –

Âť

– Qualysoft Holding Ltd. (100)

Attila Simon Tamås Zimånyi –

Âť Âť

Individuals (100) –

LĂĄszlĂł SzalĂłki (ULND 6]|OOĹƒV\ 5yWK Norbert Somkutas

599

– SAP SE (100)

BalĂĄzs Ablonczy GyĂśrgy Simon Gergely Karkiss

Synergon Informatika Nyrt.

(100) –

Dåvid Csaba Papp-Józsa – –

Âť

Âť

–

Âť

Âť

Âť

Âť

Âť

Âť Âť Âť Âť

Âť

Âť

Âť

Âť

Âť

Âť

Âť

Âť

Âť

Âť Âť Âť Âť

Âť

Âť

Âť

Âť

Âť Âť Âť Âť

Âť

Âť

Âť

Âť

Âť

Âť

Âť

Iroda++ management system, rEVOL Express invoicing system

Âť

Âť

Âť

Âť

Âť

Âť

Âť

Âť

SYNERGON Smart Building, SYNERGON Smart Grid

Âť

(1) Data of business year Oct. 1, 2013-Sept. 30, 2014. (2) Data of business year Oct. 1, 2014-March 31, 2015.

–

Âť

1149 Budapest, Zsolt József Koltai Zsolt József Koltai 1DJ\ /DMRV NLUiO\ ~WMD (90), Piroska Koltai – (1) 220-6458 BÊkei (10) Diåna Wågner (1) 469-0899 – sales@trilobita.hu

GĂĄbor Somlyai, -XGLW +HJHGĹ?V TamĂĄs KoppĂĄny Ferenc TurcsĂĄn

Zorp Gateway, Shell Controll Box

Âť

15

4iG Nyrt. (78.20), HS Board Kft. (16), BÊla Zsolt Tóth (5.70) –

ArchiCAD, BIMx, BIMcloud, MEP Modeler, EcoDesigner Star

1149 Budapest, PillangĂł park 9.

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

298 15

–

KonrĂĄd MiklĂłs MolnĂĄr Judit HorvĂĄth Magdolna Demeter

–

39 3

Magdolna Demeter (60), Miklós Konråd Molnår (30), Miklós Molnår (10) –

1135 Budapest, Mór utca 2–4.

(1) 237-9852 (1) 237-9851 saldo@saldo.hu

ADDRESS PHONE FAX EMAIL

MĂĄrta MĂĄria Sibinger GĂĄbor Imre Ă gnes Kramer

Âť

Âť

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

(100) –

Âť

NetFlyr

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

75 20

Âť

Âť

NO. OF FULL-TIME EMPLOYEES ON AUG. 1, 2015 OF THESE, FULL TIME SOFTWARE DEVELOPERS

326

www.terc.hu

SOFTWARE RELATED ACTIVITIES

MAIN EXPORT DESTINATIONS

TERC KERESKEDELMI ÉS 12 SZOLGà LTATÓ KFT.

TOTAL NET REVENUE IN 2014 (HUF MLN) IN H1, 2015 (HUF MLN)

COMPANY WEBSITE

Budapest Business Journal | Sept 04 – Sept 17, 2015

NET REVENUE FROM SOFTWARE DEVELOPMENT (HUF MLN) IN 2014

RANK

28 3

145

Âť

9

341

Âť

376

Âť

43

Âť

185

Âť

19

Âť

1061 Budapest, AndrĂĄssy Ăşt 9.

(1) 413-3780 – recepcio.bp@lonmin.com 1031 Budapest, Graphisoft park 3.

(1) 437-2800 (1) 437-2899 – 1038 Budapest, ) UGĹƒ XWFD (1) 453-4100 (1) 453-4101 info@p92.hu 1118 Budapest, RĂŠtkĂśz utca 5.

(1) 889-9800 (1) 889-9810 RIĂ€FH#TXDO\VRIW KX 1133 Budapest, VĂĄci Ăşt 76.

(1) 461-8030 (1) 352-1553 revol@revolution.hu 1031 Budapest, ZĂĄhony utca 7.

(1) 885-7300 (1) 457-8344 – 1108 Budapest, Kozma utca 2.

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

BBJ

4 Socialite WHAT’S

ON

Fun things to d o in Budapest for the nex t t wo weeks.

Budapest Wine Festival.

Busho Short Film Festival September 1−6, Puskin Cinema Launched by an enthusiastic group of young filmmakers in 2004, the Busho short film Festival continues to focus on the cultural identity of Eastern Europe while expanding its palette further afield. Film genres range from fiction, animation and experimental with 68 shorts being screened in competition this year. Feature films and workshops are now also part of the festival’s program and this year organizers are proud of the strong selection of Hungarian shorts being presented. busho.hu

Photos Moni Lazar

Goose Liver Festival September 4−6, Erzsébet tér

Rubber Ducks for UNICEF Almost 100,000 rubber ducks were the poured into the Danube River from the Lánchíd on August 30 in a charity event organized by UNICEF. Rubber ducks were available for purchase weeks before the event. Each duck was marked, and the first 100 people who retrieved their duck could win a prize. This is the second year in a row that the event has been held in Budapest, and it drew nearly twice as many donations as the first race: Last year 55,000 ducks were purchased.

Back this year, the 7th annual Goose Liver Festival celebrates all varieties of liver.

Sample what some say Hungarians do best, presented in traditional and more progressive renditions. Goose liver has a long tradition in Hungary, matched only in quality by its equally luxurious counterpart, foie gras. magyarizek.hu Etyek Picnic September 5−6, Etyek, various locations A short drive southwest of Budapest, Etyek is the closest wine region to the

capital and as is customary every spring, the region also hosts a picnic every fall.

Traditional and not so traditional fare can be sampled alongside the finest vintages of the region. Also part of the program are film screenings, concerts, cooking competitions, a handicrafts market and a tour of the local wine cellars. etyekipiknik.hu Budapest Wine Festival September 9−13, Buda Castle With nearly 200 wine makers being represented, this is the country’s most notable wine festival. Anyone worth their salt in the industry does not miss taking part in this event. There will also be plenty of local gastronomy on offer as well as concerts to keep guests entertained. Pick up your glass at the door and be sure to keep it filled with some very fine locally produced vintages. aborfesztival.hu Főzdefeszt and Street Food Show September 11−13, Felvonulási tér This specialty festival attracts devoted fans of craft beers featured alongside a mouth watering selection of Budapest’s signature street food. Visitors can take part in this beer−bathed picnic adjacent to City Park with all food and drink supplied by local vendors. More than 60 breweries offer up over 200 varieties of beer. fozdefeszt.hu

30

WWW.BBJ.HU

4 Socialite

Budapest Business Journal | Sept 04 – Sept 17, 2015

Wine: Soaking up the best of Badacsony This wonderful wine region along Lake Balaton is a lovely place to visit and a fantastic place for vintages.

ROB SMYTH

With its volcanic basalt soils, attractive landscape, distinctive indigenous grapes, choice lakeside setting on Lake Balaton’s northern shores, and exciting winemakers, Badacsony is a hot vinous destination at any time of year. Indeed, the Balaton sub−region of Badacsony is so much more than an attractive holiday destination; it possesses ideal conditions for making complex white wines and now some impressive reds.

Lake Balaton itself serves to moderate extremes in weather, while also reflecting sun off the lake onto the vines to ripen the grapes, which helps to bring very nice fruitiness. The basalt soils also retain heat nicely, which further enhances ripeness, and is also likely to be behind the wine’s typically savory character, often described as minerality, while they also contribute the vibrant acidity that delivers length on the palate. This combination of fruitiness and saltiness helps makes wine that can be complex and slip down a treat. Indeed, even many light, reductively made Badacsony wines often have a nice complex salty note to them. Central Europe’s largest lake also cools things down at night, helping to preserve acidity and freshness in the wines.

Here are some of the most exciting wines and winemakers to look out for.

The white Budai Zöld grape’s primary purpose is to pollinate the noble indigenous Kéknyelű grape but Válibor’s Péter Váli (Major utca 46, Badacsonyörs, www.valibor.hu) has a great knack of making stylish, unique wine from it.

He even managed this in the tricky 2014 vintage when he put out another sophisticated floral and citrusy wine with crispy acidity. Válibor’s Kéknyelű is also among the region’s most impressive and structured offerings of the grape that is probably the star of the local show. It produces wine that can be on the neutral side when young, but it can reveal serious ADVERTISEMENT

Badacsony: Green countryside and white wines. depth on cellaring for a few years. Until recently it hadn’t been living up to its star billing, which possibly had something to do with the wines not being given time to show their true colors. Szeremley, for one, lays down its Kéknyelű long enough to pick up serious intensity, as well as a nutty and oily complexity. The 2009 vintage is currently on the shelves.

Szeremley, which played a huge pioneering role in the development of Badacsony as a wine and gastro destination also likes to give its full−bodied Riesling (Rajnai rizling in Hungary) the years it needs to pick up those classic petrol notes before bringing it to the table. The 2008 and 1997 were a real joy to taste. For a light and refreshing number from Szeremley, the Muscat Ottonel oozes grape soda and peachy zestiness while the Olaszrizling is great value. The Szeremley Borház Restaurant (Kisfaludy S. utca 5) in the town of Badacsony is a top spot to dine and try Szeremley wines.

Riesling and Olaszrizling hotspot Badacsony has become one of the hotspots for Riesling in Hungary and Villa Sandahl (Római út 203/1, Badacsony, www.villasandahl.com) makes very high

Szeremley Borház Restaurant in Badacsony.

WWW.BBJ.HU

4 Socialite

Budapest Business Journal | Sept 04 – Sept 17, 2015

standard but also pricey Rieslings using yeast from the Riesling powerhouse region of Alsace. Swedish owner Crister Sandahl believes that Riesling is the only grape that ripens late enough to stay long enough on the vines to accumulate enough flavor richness.

For more bang for the buck, Villa Tolnay (Csobánchegy 24, Gyulakeszi) really captures Riesling’s characteristic green apple, peach, and zesty acidity, with a spicy local touch. Here, also look out for Zöldveltelini, which is the same grape as Austria’s über cool and stylish Grüner Veltliner. I tasted Villa Tolnay’s Zöldveltelini for the first time a few years ago on the back of sampling many of Austria’s finest and Villa Tolnay’s was definitely in the right ballpark. The Olaszrizling here is also one of the best in the region, indeed the country, with the winery claiming the top two places in Olaszrizling October’s blind tasting in 2013. Note that Tavasz at Villa Tolnay refers to wine that has been reductively made (i.e. no barrel, just tank). Wines from this Swiss− owned winery are some of the best value in the country. Winemaker László Nagy is also co−owner of the Sabar winery (Sabari szőlő 2, Káptalantóti, www.sabar.hu), which has been turning out very good value wine for a few years now. It recently upped the stakes with its Olaszrizling “Mórocz” 2013, which was fermented and aged in Austrian Stockinger oak barrels, which helped the excellent juice be fermented into a complex, beautifully textured and balanced big white with pineapple, pear and stony notes.

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View of Lake Balaton.

Another top Olaszrizling is Laposa Borbirtok’s 4 hegy Olaszrizling; a blend of Hungary’s most widely planted white grape coming from four hills (Badacsony, Csobánc, and Szent György−hegy in the Badacsony region, as well as from Somló hegy), it is made in the barrel and tank.

This is the standout and most complex wine from Laposa Borbirtok (Római út 197, Badacsonytomaj, www.bazaltbor.hu) – which is not to be confused with Laposa Pincészet, which lies almost directly downhill, the difference being a result of the family’s bust up with its investors. For a lighter take on Olaszrizling, check out the zesty and good value Friss (Fresh), which in 2014 was made of 100% Olaszrizling.

Furmint is now in the Laposa line up and is varietally pure. It originates from cuttings from the prize source of Tokaj maestro István Szepsy’s vineyard.

A dash of oak Oak comes seriously into play with Olaszrizling over at the 2HA (www.2ha. hu) winery on Szent György hegy, where owner Csaba Török says the grapes are so good that they can more than stand up to oak and be taken further. He applies oak ageing with care and reduces the amount of newer oak in inferior vintages when the juice is less concentrated. He and his winemaker normally get it right, making Olaszizling of unparalleled opulence. By the way, 2HA is also making some very nice red wines, especially the Syrah.

A real rarity (in Hungary at least) is the wine labeled Tabunello, which is made from Chianti’s Sangiovese grape, and the result is suitably earthy. Another very good red wine producer is Csobánci Bormanufaktúra (Balassi utca 3, Tapolca− Diszel, www.csobanccooperation.eu) out

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by Csobánc hegy. Look out for the well− structured and richly flavored Gilgames Syrah−Merlot blend.

Just above 2HA, you’ll spot the strikingly designed black and white colored Gilvesy Pincészet, which has now joined my top flight with some stunning Rieslings, as well an exciting Sauvignon Blanc 2014, which tastes of both the grape and the terroir.

Close by in Hegymagas, Endre Szászi (Mókus krt., www.szaszipince.hu) makes Olaszrizlings from both Szent György hegy and Szigliget Olaszrizlings. The Szent György hegy wine comes from soil containing more basalt and is lean and focused, while the Szigliget wine is riper and more floral, coming from more mixed soils and getting more heat reflected back from the lake.

One of the region’s most exciting young winemakers is Ambrus Bakó (Erdős u.

23, Badacsonytomaj), who doesn’t actually own any of his own vineyards. In 2014, he decided to make a single blend from the grapes of the growers he buys in from the difficult vintage of 2014, in which disease in the vineyards was rife, to make a buoyantly healthy blend.

For Hárslevelű, Istvándy in Káptalantóti (www.istvandy−pinceszet.hu) and Csendes Dűlő in Badacsonyörs (www.csendes−dulo. hu) are the ones to go to.

For the best of the old school, check out Malik (Tatay Sándor út 6, Badacsony, malikpince@gmail.com), which uses the most traditional of winemaking methods to make rich and oily Kéknyelű, Bakator, Budai Zöld and Zeus.

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