Business Arena Magazine nr. 84

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USINESS B E n j o y t h e Q u a l i t y ***** A d m i r e t h e V a l u e *****

magazine

MARIUS ILIEV

ARENA

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No.84/2019

GENERAL MANAGER AT VIA VITICOLA

Our motto is: “We make people happy” - our customers, our employees, our suppliers, our shareholders, and everyone contributing to our success.

pages 6 - 7

special section inside

LUXURY & LIFESTYLE

TOP BRAND pages 32 - 62

in partnership with

Business Arena Magazine is proud to announce the 19th edition of its annual event dedicated to the leaders in the financial market:

FINANCIAL LEADERS’ HALL OF FAME 2019

Some 200 persons from the financial and baking sectors, directors of investment funds and representatives of some of the largest companies in Romania, together with representatives of the local authorities, high government officials and diplomats will take part in this exclusive event.

Invited to give the opening remarks at last year's edition, Raiffeisen Bank Romania’s CEO Steven van Groningen emphasized that making predictions in the banking and financial industry was somewhat risky, but overall the trend was positive. “The banking system is profitable and we have seen a process of consolidation, which is good news for the system’s long-term sustainability and strength,” he said. He also indicated that investments in technology were important, as they allowed banks to spend more time analyzing customers’ needs.

However, the Government's move to approve Emergency Ordinance 114 late last year, introducing, among others, a new tax on bank assets, may change the outlook for the entire industry.

In this context, Business Arena Magazine is proud to recognize the achievements and successes of banks, financial institutions and business leaders that find the winning strategies in spite of the challenging economic background.

For more information please contact Cosmin Stangaciu at cosmin.stangaciu@business-arena.ro or phone 0755.274.125

EDITORIAL

by

Cristian Cojanu

IMF WARNS OF GROWING MACROECONOMIC RISKS Romania’s widening macroeconomic imbalances have raised concern among the IMF officials who recently completed a staff visit to Bucharest. Their preliminary findings emphasize that the country’s consumption-led growth has remained strong, but macroeconomic disparities have also deepened, reflected in the wider fiscal and current account deficits, and higher inflation pressure.

“Unless policies change course, the progress in convergence could suffer a setback that hurts the real incomes of retirees and poor people particularly hard. A more balanced policy mix is needed to reduce the likelihood of such a setback: first and foremost, fiscal consolidation complemented by monetary tightening and greater exchange rate flexibility. Additionally, policies need to become more predictable and governance improve to enhance the medium-run prospects of income convergence,” the IMF officials indicated in the Staff Concluding Statement of the 2019 Article IV Mission.

According to the same source, reducing imbalances should start with fiscal moderation, and “durable fiscal consolidation based on high quality measures, starting this year, is paramount to put the economy on a more resilient footing.”

In addition, the IMF officials’ report notes that structural fiscal reforms “would facilitate and sustain medium term fiscal consolidation.” There is also room for improvement on the expenditure side. “The budget structure can be

improved by moderating growth in rigid spending - the wage bill and pensions while making room for more investment. Expenditure efficiency can be improved by further strengthening the procurement process and expenditure reviews.”

Moreover, the report suggests that more efforts are needed to improve investment in public infrastructure, and a more effective absorption of EU funds, noting that public-private partnerships, a model favored by the Romanian Government in recent years, often entail substantial risks.

The IMF also recommends further tightening of the monetary policy, as inflationary pressure is expected to stay elevated, while adding that effective and sound institutions are critical for inclusive and sustained growth.

“Reducing corruption helps improve government revenue, enhance spending efficiency, and strengthen competitiveness,” the report points out.

Another point raised in the report claims that greater policy predictability would have a positive impact on investment and growth. “Adequate impact assessment, prior consultations with stakeholders and a more measured implementation would strengthen policy predictability and effectiveness.”

Whether the current policy and political decision makers in Bucharest will make any of the suggested corrections is hard to predict, but Business Arena will continue to keep an eye on all the issues affecting the business community, reflecting its views, hopes and challenges.

FROM ALL OF US HERE AT BUSINESS ARENA, ENJOY THE QUALITY, ADMIRE THE VALUE!

INTERVIEW

IN PURSUIT OF WINEMAKING EXCELLENCE Marius Iliev has embarked on a work of passion and perseverance, as he aims to reach new highs in an industry that is predicted to have outstanding development potential. At the helm of Via Viticola, Marius Iliev is confident that Romania’s winemaking industry provides excellent growth opportunities if the cards are played right.

How much has been invested in the vineyard and in the winemaking facilities in the last few years?

Our total investment stands at 10 million euro.

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What is the size of the plantation and what are the main varieties planted there?

We have 380 hectares of vineyards at Viticola Sarica Niculitel and the main grape varieties planted there include Aligoté, Sauvignon Blanc, Feteasca Alba, Chardonnay,

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Our motto is “We make people happy” - our customers, who appreciate our wines, our employees, who are proud to work for a dynamic company and in a pleasant environment, our suppliers, who can grow together with us, our shareholders, who bet on the success of their investment, and all the individuals and organizations, contributing to our success.

Riesling, Feteasca Neagra, Babeasca Neagra, Merlot, Cabernet, and Syrah. We have another 110 hectares at Domeniile Prince Matei, in the Zoresti, Dealu Mare wine region, with 70 hectares already in production, and the main grape varieties are Merlot, Cabernet Sauvignon, and Feteasca Neagra.

What are the main wine brands produced at Viticola Sarica Niculitel and Domeniile Prince Matei, respectively?

Our most successful Viticola Sarica Niculitel brands are Caii de la Letea, Sarica, Cuvee 4 Sfinti, Sarica Niculitel 1958, Epiphanie, Trilogie in Alb, and Scentico. In turn, Domeniile Prince Matei is famous for wine brands such as Prince Matei, Petit Matei, Villa Zorilor, Red Paradox, and Opus Dei. What is the company’s annual wine-making capacity?

We have a total production capacity of three million liters.

What are the main distribution channels for your wines?

We rely on a diverse distribution model that includes the large retail networks, HORECA industry as well as export markets.

What is the total volume and value of the wine market in Romania?

The Romanian market has a total value of around 450 – 500 million euro, while the overall wine production capacity amounts to 4.5 million hectoliters.

What is your view on the wine market in Romania and what are the main difficulties that the company has had to deal with in this market?

Romania’s wine market has seen a dynamic development, with at least 10 percent of winemakers focusing on top quality products.

Another five to 10 percent of the players in this segment have been very active in the area of marketing. However, the industry has been negatively affected by the poor administration and efficiency of professional and employers’ organizations, even though most winemakers blame the government for all the negative aspects in the industry. Another challenge stems from the difficult access to financing for most winemakers, except for the major ones, which will also hinder their access to nonrefundable financing.

There is also an excessive and unnecessary bureaucracy involved in MARIUS ILIEV all interactions with various authorities, including the Customs and the Ministry of Finance, and the lack of clarity in legislation is not helping.

How strong is competition on the Romanian wine market?

This question doesn’t have a straightforward answer. In a nutshell, if demand and supply meet at a price level allowing a reasonable return on investment, then we could say that the market is balanced in terms of competitiveness. From that perspective, we could argue that the market is very competitive, with a large number of winemakers failing to achieve adequate returns on their investments, and a small number of producers having a very high profitability, among the highest in the world in this industry.

To what extent could Romanian wines become more successful on foreign markets and how could such an objective be achieved?

Romanian wines can definitely be successful on foreign markets. But I can posi-

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tively say what should be done if we want our efforts to fail: we should wait for the Government or someone in an office in Bucharest or in Brussels to create our country brand. This extremely important endeavor should have industry members at its forefront. They should join professional and employers’ organizations, with transparent agendas, adequate financing, and with competent executive management, guiding the process in which the authorities act for the benefit of the industry.

Unfortunately, today we see the exact opposite, with the state leading the process.

What are the company’s main objectives for 2019 This year we have lined up new investments, so we can achieve an increase in product quality across the board. We also aim to increase awareness of our brands, and retain our robust turnover growth, in excess of 100 percent, while ensuring profitability. Moreover, we plan to increase market penetration and expand our presence on foreign markets.

CELEBRATING WOMEN'S SUCCESS

WARDSGala omen

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MOST ADMIRED BUSINESS

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A

2019

BEST ENTREPRENEUR

ROXANA LUPU – ARTTIS ACADEMY

...for outstanding creativity, organizational ability and determination in developing the Arttis Academy continuous learning concept in Romania.

HOSPITALITY EXECUTIVE OF THE YEAR

SILVIA BALAN – HOTEL RAMADA PARC&PLAZA

…for vision, innovative strategy and strong expertise in a highly competitive business sector.

MOST INNOVATIVE BRAND CREATION STRATEGY

ADINA BUZATU – TRENDS BY ADINA BUZATU

...for entrepreneurial success, outstanding creativity and strong leadership in building a highly regarded fashion brand.

MOST DYNAMIC APPROACH TO BUSINESS GROWTH

ALINA MITRICA – MELI MELO PARIS

…for outstanding skills and strategy in developing successful business operations in a highly competitive sector.

MOST CREATIVE LEADERSHIP

GABRIELA NISTOR – BANCA TRANSILVANIA

…for creative planning, innovative leadership, outstanding skills and strategy in a key business sector.

EXCELLENCE IN BANKING

ELLA KALLAI – ALPHA BANK ROMANIA

… for providing an outstanding model of leadership, for professional success and vision in a highly competitive business sector.

LEADING CORPORATE EXECUTIVE

MADALINA TEODORESCU – FIRST BANK

…for professional success, overall leadership skills and for passionately supporting and mentoring employees within a major organization.

MODEL OF EXCELLENCE

OLGA MELIHOV BNP PARIBAS REAL ESTATE ROMANIA

…for vision and steadfast commitment to providing an outstanding model of leadership for professional women

PR & COMMUNICATION EXECUTIVE OF THE YEAR

CORINA VASILE – RAIFFEISEN BANK ROMANIA

…for vision, innovative strategy, strong expertise and firm commitment to providing an outstanding model of leadership for professional women, and for her contribution to promoting Global Women in PR projects in Romania.

CEO OF THE YEAR

MURIELLE LORILLOUX – VODAFONE ROMANIA

…for professional success, overall leadership skills and for achieving a high level of recognition from the general business community.

MOST ADMIRED BUSINESS WOMAN OF THE YEAR

RODICA VASIN – APULUM PORCELAIN FACTORY

…for achieving a high level of recognition and admiration for business success, vision and innovative leadership

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WINNERS 2019

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BUSINESS WOMEN SEE THEIR ACHIEVEMENTS RECOGNIZED

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Business people, bankers, entrepreneurs and diplomats got together to celebrate the ladies that make a difference in various sectors and contribute to the development of Romania’s economy and society. This new edition of Business Arena’s Most Admired Business Women Awards Gala recognized women’s success and achievements in the workplace, their creativity and leadership and their vital contribution to the success of business and banking activities throughout Romania.

Speaking in the opening of the event, CEC Bank Vice President Mihaela Popa noted the growing contribution of women in business. “I am honored to join you all here tonight together with my colleagues for this wonderful event celebrating performance, excellence, female business ownership, leadership, and business women. Throughout my career spanning over 40 years, I have found that women have a special quality. They always bring to the negotiation table a sense of balance, perseverance, creativity, and tranquility. And I am sure that we are going to find those qualities in all the winners tonight.”

At the same time, the opportunities and challenges facing women in business have been subject to a number of recent international studies. On this note, Grant Thornton’s Women in business report 2019 points out that “gender diversity isn’t just the right thing from a social standpoint; it’s the best thing for business.”

“There is a significant research base demonstrating a strong correlation between diversity at a leadership level and business results,” says Kim Schmidt, global leader leadership, people and culture at Grant Thornton International. “In today’s complex, volatile

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environment, organizations need to be responsive and innovative. And we know there is a direct link between innovation and diversity. Lasting diversity can only be achieved by committed action to promote women, through sponsorship and support, by creating opportunities, removing biases and shaping an inclusive culture.”

Grant Thornton’s 2019 research reveals the highest recorded proportion of women in senior management globally at 29 percent, accounting for an increase of five percent over the last year, “suggesting a more active, targeted approach to improving the situation.”

Nonetheless, the report notes that this fails to ensure long-term gender parity, and businesses still need to take deliberate, ongoing action for sustainable change.

“Targeted initiatives kickstart activity, but where you see a difference is when they are rigorously followed through, and where there’s real commitment from the senior leadership,” says Francesca Lagerberg, Grant Thornton International’s global leader network capabilities.

The report points out that some regions are doing better than others: “Eastern Europe has the highest percentage of women in top roles, with 32 percent of senior management in the region made up of females, compared with Latin America, the worst performing at just 25 percent.”

On a similar note, a new report from the Bureau for Employers’ Activities of the International Labor Organization (ILO), emphasizes that “businesses with genuine

MOST ADMIRED BUSINESS WOMEN AWARDS GALA

gender diversity, particularly at senior level, perform better, including seeing significant profit increases.” The report, Women in Business and Management: The business case for change, surveyed almost 13,000 enterprises in 70 countries. According to the report, “more than 57 per cent of respondents agreed that gender diversity initiatives improved business outcomes.

Almost three-quarters of those companies that tracked gender diversity in their management reported profit increases of between five and 20 percent, with the majority seeing increases of between 10 and 15 percent.”

The ILO report also reveals that nearly three-quarters of the enterprises surveyed had equal opportunity or diversity and inclusion policies. However, it also calls for specific actions “to ensure that women are visible and promoted to strategic areas of business.”

In addition, a number of key factors preventing women reaching decision-making positions were identified. “Enterprise cultures that require ‘anytime, anywhere’ availability disproportionately affect women, relative to their household and family responsibilities, while policies that support

inclusivity and work-life balance (for both men and women), such as flexible working hours and paternity leave, need to be improved.”

Another factor identified is the “leaky pipeline”, the tendency for the proportion of women to decline as the management grade rises. The report notes that “the “glass wall” describes the incidence of women managers in roles such as HR, finance and administration that are considered less strategic and less likely to lead to chief executive and boardroom positions. Fewer than a third of enterprises surveyed had achieved the critical mass of one third of women board members. Around one in eight reported they still had all-male boardrooms. More than 78 per cent of enterprises who responded had male CEO’s, and those with female CEO’s were more likely to be small enterprises.”

Coming back to our awards gala, this year’s event was hosted by Andy Antemia and it was organized in partnership with CEC Bank, Garanti Bank, Alpha Bank Romania, Apulum Porcelain Factory, Hama Romania, Meli Melo Paris, Worldclass Romania, Via Viticola, Trends By Adina Buzatu, Casa Anke, Ramada Parc Hotel, Kanal D.

BANKING

ALPHA BANK ROMANIA SUCCESSFULLY PLACED THE FIRST EVER COVERED BOND IN ROMANIA

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SERGIU OPRESCU

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Alpha Bank Romania announces the successful placement of its inaugural 200 million eurodenominated covered bond issue, the first ever from a Romanian bank. This marks a milestone for both Alpha Bank Romania and the Romanian Capital Markets.

The bond, which has a five-year maturity and pays a floating rate coupon, is backed by prime Romanian residential mortgages and is rated (P) Baa2 by Moody’s. The transaction attracted strong investor interest from both local and international institutional investors, including the IFC and the EBRD. Sergiu Oprescu, Executive President of Alpha Bank Romania, said “Almost 18 years after the launch of the first ever mortgage loan in 2001, Alpha Bank Romania is opening a new chapter in the Romanian banking market with this new funding tool, demonstrating once again its pioneering capabilities”. The bond will be listed on both the Luxembourg and the Bucharest Stock Exchanges. “Covered bonds are modern financing tools that will contribute to the development of Romanian financial institutions and the capital market” said Sergiu Oprescu.

The transaction was managed by Barclays Bank PLC acting as Lead Manager and Alpha Finance Romania as Co-Manager.

RAIFFEISEN BANK REPORTS HIGHER Q1 REVENUES

Raiffeisen Bank reported revenues of 615 million lei for the first quarter of the year, 11 percent higher compared to Q1 2018. Net profit fell by 16 percent to 178 million lei, compared to the similar period in 2018. The bank’s total assets increased to 40.62 billion lei (9 percent increase year-on-year). Its loan portfolio reached 26.5 billion lei, an increase of 14 percent yearon-year. "We continued to grow steadily if we take into consideration the funding we have

STEVEN VAN GRONINGEN granted to companies or individuals and trading results. We have the satisfaction of being one of the major financiers and supporters of the Romanian economy. On the other hand, we report a declining profit at March 31, 2019, due to higher spending on wages, fees, contributions to the deposit guarantee fund, regulatory costs such as MIFID II, PSD2, but also higher efforts of the bank for digital transformation," said Steven van Groningen, President and CEO of Raiffeisen Bank. Net loans to customers increased by 15 percent in Q1 2019, a growth supported mainly by loans to large and medium-sized corporations and consumer loans for individuals. Loans to Romanian large and medium-sized corporations increased by 20 percent as of March 31, 2019, year on year. Consumer loans for individuals advanced over the previous year, and are up 11 percent. The non-performing loans ratio declined to 4.2 percent at the end of Q1 2019, compared to 5.3 percent in March 2018.

On the other hand, deposits attracted by Raiffeisen Bank from customers advanced by 9 percent (year-on-year) reaching 33.11 billion lei.

The bank's operating expenses totaled 363 million lei, compared to 320 million lei in March 2018 (a 14 per cent increase). The bank notes that the increase in operating expenses comes from the wage area, taxes paid by the bank, costs related to introducing new regulations, but also for digital transformation.

Raiffeisen Bank has exceeded the threshold of 650,000 digital customers who use Raiffeisen Smart Mobile and Raiffeisen Online. The bank is the leader of the credit card market with 500,000 active cards as of March 31, 2019, and more than 95 per cent of the amounts traded through Raiffeisen Bank credit cards are used at POS or for online shopping.

The bank also supports the Romanian startups. Earlier this year, it launched the second edition of the "factory by RAIFFEISEN BANK" program with a new offer and an extended benefits package. Of the 315 projects submitted, 165 are in the final stage of the program and are currently pitching their business ideas in meetings with bank specialists and experienced entrepreneurs. At the end of May, a maximum of 100 projects will be selected to be funded in 2019 with up to 50,000 euro each.

RE/MAX EXPANDS OFFICE NETWORK ON THE LOCAL CONSULTANCY MARKET Only 20 percent of those who open a RE/MAX office have previous real estate experience. That piece of information caught our attention, so Business Arena embarked on a mission to find out more about a real estate consultancy firm with a surprising expansion rate on the local market in recent years.

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BY CLAUDIA ARITON

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RE/MAX is a world leading real estate franchise network, currently gaining market share and exposure in Romania. Company officials have recently announced that RE/MAX Romania will extend its local network, opening seven new offices here. These seven franchises have been purchased by a Romanian entrepreneur residing in Portugal, who decided to start a business in his home country. He chose the RE/MAX system, having absolutely no previous real estate experience.

In his own words: “Being a Portugal resident, where RE/MAX is a well-stablished brand, and holding collaborations with its agencies since 2014, I was intrigued by the work pattern, by the advantages the network has to offer, and by the rules governing it. Meanwhile, my wife and I decided to start a business in our motherland, and, that is why, searching information online about the presence of this brand in Romania, we noticed that there weren’t RE/MAX offices in all the cities. That’s how we set it as a goal to create a network of multiple agencies, based on the model seen in Portugal. We contacted the RE/MAX Romania representatives and we successfully purchased our seven franchises,” said Stefan Csordas, owner of RE/MAX Gold offices network.

RE/MAX Gold already has five operational offices in Baia Mare, Satu Mare, Oradea, Arad, and Timisoara, with a team of over 20 staff.

“Achieving a constant development, both in quantity and quality, is one of our main objectives for our agencies and team. We also target a larger market share, which will eventually reflect in larger revenues,” Csordas explained. Asked about his view of the future of the real estate consultancy in Romania, the entrepreneur said that market segment would definitely see significant progress in the medium term, meaning that most real estate

transactions would be handled by agencies. He may have no previous real estate experience, but his vision and insight have led him to business success. With a solid entrepreneurial background, Stefan Csordas has now placed his bets on the real estate consultancy industry. “RE/MAX has become a leader in the real estate segment because it represents a business which has stood the test of time.

Things aren’t random. There are specialization classes, vital for a business, which take place and come handy especially for those who don’t know the industry. The RE/MAX business model, the support which is given to you, as well as the constant time and energy spent on training brokers, owners, and agents are ideal for an entrepreneur at the beginning of their career,” Csordas explained.

According to the company’s officials, the cities with the most franchisees are Bucharest, Cluj, Timisoara and Sibiu, where reports have identified significant growth in terms of transactions. Almost a half of the company’s brokers are under 30 years of age, 33 percent are below 40 and a quarter are below 55.

According to the company’s official, RE/Max Romania handled 2,500 transactions in 2018, worth 155 million euro, recording an increase of about 50 percent as compared to 2017. RE/MAX’s local network ended 2018 with 42 franchised offices and 350 members.

“2018 was a productive year for RE/MAX, which positively marked the development of the company at all levels, both in terms of results and in terms of network development.

Taking into account the steady upward trend of the business, continued investment in training and technology, and the current market trends, we estimate a 40 percent increase in commissions, franchisees and agents this year,” said Razvan Cuc, president of RE/MAX Romania.

The company’s offices in Cluj-Napoca

registered the largest number of traded properties in 2018, followed by those in the Capital, based on the potential for development in those markets. The 2018 ranking finds Sibiu in third place. At the same time, the largest 2018 RE/MAX transaction involved the sale of an industrial space for over 2.5 million euro. It was followed by the sale of a plot of land in Cluj, for almost two million euro, and the sale of an industrial facility in Sibiu, for 1.6 million euro. Regarding the type of property traded by RE/MAX, 81 percent were in the residential segment, seven percent represented land transactions and 12 percent were covered by the office, commercial and industrial segments. Overall, 65 percent of the transactions were sales. “These results reflect the trust this brand instills in the client, as well as in the franchise investor. Of course, the last five years have been full of opportunities for the entire real estate market, an aspect which has pushed further and guided our activity, but the figures which make the difference are those related to the capacity of a world-wide brand to create new standards on an emerging market,” added Razvan Cuc, president of RE/MAX Romania.

The company counts on a positive business performance this year, an increase of about 40 percent in all areas. So, by the end of 2019, RE/MAX expects total commissions of around 4.2 million euro, at least 55 franchised offices and around 500 members. The local player has also recently launched a voice search option on its real estate announcements portal.

Search results are offered to potential clients in a matter of milliseconds. The company’s officials say it is an effective way for any client to save time and benefit from an easy search.

“In the current context, characterized by speed and technology, which facilitates all our daily activities, we believe this new tool provided by our remax.ro portal will prove to be very useful for many Romanians in their search for the ideal home,” said Razvan Cuc. Looking ahead, the company is planning to reach some 110 franchised offices and over 1,000 real estate agents by 2023.

RE/MAX, founded in 1973 in Denver, has over 125,000 affiliated agents in 7,000 offices in over 100 countries worldwide. Now, the domestic real estate market offers tremendous opportunities. RE/MAX Romania officials estimate that the local real estate consultancy market has reached a value of 80 million euro.

Nevertheless, considering the evolution of the

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industry at European level, along with the market growth signals, which have become so visible in recent years, RE/MAX experts estimate that this particular market segment will double its value in around five years’ time.

“The real estate consultancy market has seen fast development in recent years, which is a sign of stronger demand for specialized advice on real estate transactions, meaning constant professional guidance, based on the client’s needs and preferences. On the other hand, if we compare it to the developed markets, we notice that there is still a lot of potential for growth locally, which requires common efforts from all the players. The constant investment in educating and training agents to perform at international standards will bring a change in the Romanian public’s perceptions regarding our industry, offering clients the trust they need when dealing with a real estate consultant,” the president of RE/MAX, Razvan Cuc, emphasized.

According to a RE/MAX Romania analysis, some 8,000 agents activate on the Romanian real estate market, “which means one agent for 2,500 inhabitants, a small number compared to the needs on this market.” In order to fix this situation, there is a need for professional norms in this industry, a work pattern based on exclusive representation, as well as strong networks and associations, concluded the head of RE/MAX.

RAZVAN CUC

BANKING AND FINANCE

EBRD INVESTS IN NEW BOND

BY NE PROPERTY The EBRD is supporting capital market development in Romania with a 50 million euro investment in the second benchmark-sized 500 million euro corporate bond issued by NE Property B.V. The firm is owned by NEPI Rockcastle, a leading property investment and development group which is present in nine markets across central and southeast Europe, with Romania making up the largest share of the company’s portfolio. NE Property B.V.’s Eurobond issue marks the second phase of a 1.5-billion-euro medium-term note program. In 2017, the EBRD invested 50 million euro in the company’s 500-million-euro bond issuance, which was the first investment-grade corporate Eurobond issue listed on the Bucharest Stock Exchange. The proceeds will be used to refinance existing debt, fund the completion of projects under development and purchase new commercial real estate assets in the region.

The issuer is also committed to seeking globally-recognized green certification for developments financed with bond proceeds.

Like the first bond, the new issuance will be listed on both the Irish Stock Exchange and the Bucharest Stock Exchange, providing another boost to Romania’s capital markets.

According to an EBRD release, Romania has the lowest use of debt capital markets amongst the economies of central and southeast Europe.

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CEC BANK POSTS ITS BEST RESULTS IN 11 YEARS

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CEC Bank ended last year with a gross profit of 432.97 million lei, representing the best financial performance in the last 11 years, following the successful implementation of its strategies.

In 2018, the bank’s current corporate customer loan portfolio increased by around 13.1 percent from the year before, while the banking system saw an overall increase of just 6.8 percent. The bank also increased its current retail loan portfolio, with a 7.3 percent gain compared to the previous year.

As for the volume of new loans granted in 2018, it increased by about 5.34 percent compared to the year before, reaching around

seven billion lei. However, the bank points out that its lending activity had a much higher growth rate than that recorded in its balance sheet, as loans to customers operating in agriculture are given and fully repaid during the same year, while loans approved in 2018 and not used before year-end are not reflected in the balance sheet.

Continuing the policy of supporting the absorption of European funds, the bank financed 48,046 eligible projects, for which the total grants amounted to 13,932 million lei. The balance of deposits attracted from non-bank customers registered a 1.1 percent increase in 2018 compared to the previous year, as the bank had enough liquidity and did not encourage such savings products.

Throughout 2018, the bank saw a significant improvement in asset quality. Thus, the rate of non-performing exposures on loans and advances reached 6.01 percent at the end of 2018, 3.09 pp down from the year before. In the retail segment, the non-performing loans rate reached 1.96 percent (below the 4.81 percent banking system average), reflecting the high quality of the loan portfolio granted to individuals. The end-2018 total equity ratio stood at 17.3 percent, reflecting an efficient use of capital. From a qualitative point of view, the bank's equity was entirely constituted from Common Equity Tier 1 capital.

The net balance of the balance sheet at the end of 2018 was 29,320.35 million lei, down 7.4 percent compared to 2017, due to a decrease in the amount deposited with the central bank, in line with the minimum reserve requirements. This led to a decrease in market share by asset volume, from 7.41 percent at the end of 2017 to 6.51 percent at the end of 2018, while the bank maintained its position among the top seven banks in the Romanian banking system.

"In keeping with its mission, CEC Bank will continue to support SMEs, agriculture, local public administrations and the population, paying special attention to co-financing projects funded by European financing. For 2019, we aim an increase in activity, especially in the lending area, with a visible impact on profitability and prudential indicator improvements. At the end of April 2019, the bank posted a gross profit of 153.2 million lei, significantly higher than the January-April 2019 targets," said Laurentiu Mitrache, General Manager - Chairman of the Board of Directors, CEC Bank.

CYBERSECURITY

EUROPEAN UNION EMBEDS PROTECTION OF THE PUBLIC CORE OF THE INTERNET IN NEW EU CYBERSECURITY ACT In March 2019, the Council of the European Union adopted the EU Cybersecurity Act, which forms part of the EU’s focus on cybersecurity announced in 2017, and the second EU-wide cybersecurity law. In addition to establishing an EU cybersecurity certification framework and promoting the European Union Agency for Network and Information Security (ENISA) to a

permanent EU Agency for Cybersecurity, the Cybersecurity Act includes a clear commitment to protect the public core of the Internet. The Act states that the public core of the Internet is a global public good and underpins the normal operation of the Internet as a whole. The new law also tasks ENISA with assisting member states with policies that sustain “the general

availability and integrity of the public core of the open Internet.”

The protection of the public core is a principle norm developed by the Global Commission on the Stability of Cyberspace (GCSC) in 2017.

“The EU’s adoption of the norm to protect the public core of the Internet bears testament to the fundamental importance of this norm for enhancing stability and security in cyberspace,” said Marietje Schaake, GCSC Commissioner and Member of the European Parliament.

“Furthermore, its inclusion in ENISA’s mandate is indicative of the EU’s commitment to protect the technical foundation of the open Internet, a global public good managed in a multistakeholder manner where all actors have a role.”

Michael Chertoff, Co-Chair of the GCSC, stated that, “The Global Commission on the Stability of Cyberspace MARIETJE welcomes the adoption of this SCHAAKE resolution and commends the European Union for its sustained commitment to protecting the public core of the Internet.” Latha Reddy, also Co-Chair of the GCSC, added that “this marks an important step in the continuation of the GCSC’s work. We will continue to call upon a wide range of stakeholders to adopt and implement norms of responsible behavior wherever this would advance stability in cyberspace.”

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HERE'S WHAT I LEARNED AT WARREN BUFFETT'S 2019 BERKSHIRE HATHAWAY SHAREHOLDER MEETING Entrepreneur Insider expert Mike Koenigs shares his key takeaways on Warren Buffett's approach to business.

Mike Koenigs helps business owners and entrepreneurs get paid for being instead of doing by becoming Transformational Business Influencers. His companies have helped over 57,000 customers in 121 countries productize their knowledge to become bestselling authors, in-demand speakers and media masters. One of his biggest pieces of advice: Get out there and meet people! Koenigs recently attended Warren Buffett's 2019 Berkshire Hathaway Annual Shareholders meeting, where he met and listened to some of the most revolutionary minds in the business world.

Here are his key takeaways from the event:

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YOU CAN GET PRICELESS INSIGHTS FROM WARREN BUFFETT FOR JUST $200.

"I’ve heard about the Berkshire Hathaway meeting for years. But the illusion I was under is that you had to own a share of their stock, which is presently selling for like $222,000, to attend. I

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only thought it was for the big shots. I didn't know that they sold B shares, which are currently around $200. If you buy one B share of a Berkshire Hathaway stock, you can attend this annual event and get four passes. It's the best $200 I've ever spent -- because it's an asset that appreciates -- but more valuable than the stock is the knowledge you gain."

FOCUSING ON PLAYING THE LONG GAME. "Buffett and Vice Chairman Charlie Munger talked about the fact that they have a lot of time off. As an entrepreneur, it's easy to get into that, 'I can't take time off because I have to do this and this and this and this.' We get into the doing trap, the chaos trap. The way to get out of that

trap is to stop doing all the time. Most of what we do is nonsensical chaos addiction that doesn't move us forward, and it's not the long game. And the only way to play the long game is to stop doing the short game."

MODELING WARREN BUFFET’S APPROACH. "I have a friend named Tai Lopez. He's got a huge platform online, and by his account, he's spent about a half a billion dollars on advertising online. Tai has dedicated a lot of time thinking about Berkshire Hathaway, Warren Buffett and modeling how he thinks. Tai told me that Warren said at one point, 'I've made about 25 great decisions in the past 50 years.' He doesn't waste time thinking about the small stuff. He thinks about big things. And he knows the power of brands. They acquire brands that are going to be around a long time, like General Mills.

Cheerios -- that is a license to print money. Try to model your thinking to be in line with theirs, because historically, when the S&P is doing 10%, Berkshire Hathaway consistently is doing 23 – 25%."

THE VALUE OF BUILDING A PERSONAL BRAND. "The distinction between your personal brand and the brand of your business doesn't exist.

Build a following and train that following to buy from you where you produce value. If you've got a personality that people like, that makes them feel good, they will pay you three times five times or ten times more for an identical product or service. And once you've built an asset or brand that you sell, your personal brand following will follow you to your next project. You get a kickstart rather than building from scratch."

BONE AUGMENTATION Guided Bone Regeneration (GBR) is a procedure aimed at obtaining adequate bone tissue for a dental implant or for correcting a bone defect that prevents us to achieve perfect dental aesthetics.

GBR is a bone augmentation technique needed when the patient’s own bone supply is deficient, the bone volume being insufficient for the insertion of a dental implant. This procedure is either performed with bone harvested from the patient (autologous) or with artificial bone, acquired from specialized laboratories.

Bone regeneration time varies between four and eight months, depending on the complexity of the intended procedure and new bone volume required.

Why a dental implant?

Dental implants should always be seen as the first option to replace a missing tooth or a tooth that has to be extracted. The procedure of replacing missing teeth with dental implants has been used as a treatment method for over 40 years, and it is recognized as the ideal treatment method.

What is a dental implant?

Dental implants are artificial dental roots, made of titanium and specially treated so they become integrated into the human bone. Those screw-like metal pegs replace dental roots. They are implanted into the bone during a short, simple and painless surgical procedure.

The bone and the titanium implant create a strong bond and finally a foundation for the future artificial tooth.

Dental implants can replace one or more missing teeth, thus maintaining the facial structure and preventing bone damage (resorption), which occurs when one or more teeth are lost.

What can dental implants do?

• Replace one or more teeth; • Support prosthetic bridges, helping replace total dentures; • Support total dentures, providing more safety and comfort.

Advantages of dental implants versus dental bridges and dentures: Aesthetic: dental implants look and feel like your natural teeth. Once the dental implant has integrated into the bone, it prevents bone loss and gingival retraction - which will occur when a dental bridge is fitted.

Conservative: it does not involve damage to adjacent teeth (unlike conventional bridges), because neighboring teeth are not involved in implant support.

Confidence: dental implants allow you to smile, talk and eat again with comfort and confidence. They are safe and give you the possibility to behave normally.

Rehabilitation: the success rate of dental implants is growing constantly. They are considered the best option for replacing missing teeth.

What is the procedure like?

When the implant insertion procedure is done correctly, it is painless and brief. This is because the bone has very few nerve endings and the whole procedure is performed under local anesthesia.

What to expect after treatment?

As you know your teeth require very careful hygiene and regular visits to the dentist. Dental implants are like your natural teeth and will require the same care.

To keep them clean, dental implants must be cleaned with interdental brushes and dental floss and don’t forget about the visit to the dentist.

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special section

BOVET VIRTUOSO IX WATCH

Double Time Zone 10-Day Power Reserve Big Date Flying Tourbillon

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U X U R Y

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LIFESTYLE

TOP BRAND

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Aside from the amazing flinqué guilloché and the spiky tourbillon carriage with its center sapphire, my favorite thing about the Bovet Virtuoso IX watch is the gothic-style font for the date display and the serpentine center minutes hand. This is an extremely decorative watch yet somehow subtle in design, with its matte white and rose gold details amidst that extraordinary deep blue background. The fact that it is also a dual timer with a flying tourbillon escapement is a bonus that adds mechanical virtuosity as well. Is it too lavish to be considered masculine?

CONSIDERING THE WATCHMAKING PRACTICE of the Bovet brothers at the dawn of the 19th century reveals how perfectly they mastered traditional watchmaking and the decorative arts of the Académie. At the same time, they expressed a very contemporary and innovative vision, both technically and stylistically.

IF ART AND WATCHMAKING EXPERTS recognize the work of the Bovet brothers in all its diversity, it is because the common denominator between academic tradition and innovation has always been uncompromising quality, in the service of reliability, chronometry, elegance, and good taste. Mr. Raffy has tasked himself with achieving this same subtle balance in the design of the Tourbillon Amadéo Fleurier Virtuoso IX. THIS ALL-NEW CALIBER is housed in a 46.30 mm diameter Fleurier Amadéo convertible case. A true icon of the Maison, the Amadéo system transforms the timepiece into a reversible wristwatch, a pocket watch, or a table clock without the use of any tools.

Additionally, the Virtuoso IX case is equipped with a fascinating new mechanism, allowing the case back to be opened simply by applying pressure to the crown. The proven ergonomics of the Fleurier case make this timepiece suited for everyday wear. In the same vein, its features and complications will always be of use to the collector, both over time and throughout his travels.

THE DIAL is meticulously organized for clarity, yet exudes a unique style. Only the minute hand is centered on the dial. The hour hand is offset at 2 o’clock, and a second hour hand, the 24hour hand, displays a second time zone at 10 o’clock. Both

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Sapphire "writing slope" case, flying tourbillon, three-dimensional moon phase, big date, 10 days' power reserve

local time and the secondary time zone thus share the minute hand. A corresponding indicator displays the second time zone’s city name. Two lateral correctors make adjusting and selecting a time zone easy, all while taking into account the differences between daylight savings time and standard time.

LOGICALLY, a big date indication is included with these complications, positioned on the right side of the dial. Its aperture opens wide without separating the tens from the units. The ingenuity of the Maison’s watchmakers allows the date to be displayed as big as possible while minimizing the space required for its mechanism.

THE POWER RESERVE INDICATOR sits at 8 o’clock, balancing the big date indicator and notifying the wearer at a glance just how much of the 10-day power supply remains.

THE TIMEPIECE boasts an entirely new face on the reverse side. Though no dial is present, the hours and minutes are centered directly over the complex movement. The openwork bridges evoke the iconic architecture of 19th century BOVET movements, each surface engraved with a sparkling “bris de verre” motif.

Once engraved, chamfered, and entirely decorated, the bridges are coated with a blue CVD treatment, which contrasts beautifully with the rhodium plate. This color combination was a favorite of the Bovet brothers usually employed on mirror-finished or finely engraved surfaces.

Brand: Bovet Model: Virtuoso IX Case Dimensions: 46.30mm, 16mm thick Water Resistance: 30m Case Material: 18k red gold, white gold, or platinum Crystal: Sapphire crystal front and back Diamonds: 45 round brilliant diamonds totaling 0.1crt Movement: Hand-wound caliber 17BM04-DFR Frequency: 18,000vph Power Reserve: 10 days Strap/Bracelet: Full skin alligator Price and availability: 230,000 CHF

EACH OF THE THREE TIMEPIECES boasted groundbreaking technical specificities and explored new ways of measuring time, and each was also housed in a characteristic inclined case, inspired by and shaped like a sloped writing desk. Designed by BOVET 1822 Owner, Mr. Raffy, the “writing slope” case features a bezel inclined at 6 o’clock. This ingenious idea makes it possible to diversify and organize the types of displays by using domes, rollers, discs, and three-dimensional hands to enhance intuitiveness, ergonomics, and elegance. The three-dimensional design prioritizes information for improved readability and brings the collector’s eye to the heart of the movement to discover the excellence found in each detail.

AS SEEN BY THE NUMEROUS AWARDS bestowed on the trilogy’s timepieces, notably including the Aiguille d’Or Grand Prix which honored Grand Récital at the Grand Prix d’Horlogerie de Genève in 2018, collectors and experts commend the stylistic revolution of the “writing slope” case. Mr. Raffy’s inspired “writing slope” case design meets and once again exceeds collectors’ expectations in the Maison’s latest timepiece, the Récital 23, by simultaneously introducing four complications developed specifically to be housed within the “writing slope” case.

THE MIDDLE AND GLASS ultimately form a single element that conscientiously respects the original design of the collection’s inclined cases. The back consists of a bezel and four horns that have been machine-cut from grade 5 titanium. It goes without saying that this bezel features a sapphire glass that opens generously onto the back of a movement and reveals a wealth of secrets.

Augustin watches: Time becomes art

Augustin Matei deserves to be famous, as he is an endangered species: an artisan.

The idea is simple: you come with your wish or desire and he turns it into a watch.

The limit can only be the availability of components, because for his imagination – the sky is the limit. And one more thing - it's affordable...

POPE FRANCIS’S WATCH The watch was a present to Pope Francis from the Romanian Government on the occasion of his visit to Romania.

It displays a fine and humble representation of Saint Francis of Assisi, inspired by a famous fresco by Giotto. The watch face contains three “emotional” elements: rock from Argentina, volcanic rock from Mount Etna, and Romanian soil. The back displays the distinctive Voronet blue.

20,000 LEAGUES UNDER THE SEA A watch with a story, it was inspired by Jules Verne’s novel. It is a daring and atypical concept, which is a trademark of Augustin’s watches. Augustin sets out to return Captain Nemo’s watch.

Case: 46-mm diameter, with rotation on its own axis. Domed sapphire crystal. Handmade dark blue alligator leather strap.

Movement: Swiss manual wind, golden, ETA 6498/Unitas caliber skeleton. Dial: manual micro painting and engraving.

NOTRE DAME A spectacular watch, with a transparent, stained glass-like dial and a case that rotates on its own axis. The dial is reminiscent of the rose window of the Notre Dame Cathedral. This work of art emerged as a reaction to the sad news about the Notre Dame fire. Case: 46-mm stainless steel, sapphire crystal. Movement: Swiss manual wind, golden, ETA 6498/Unitas caliber skeleton. Exotic, blue lizard leather strap. Dial: silver elements and innovative stained-glass system.

MEMENTO MORI (THE HOURGLASS WATCH) The only watch in the world displaying a functional hourglass on its dial, it comes with micro engraving and around 90 white and black diamonds. It is a luxury watch, made in partnership with watchmaker Adrian Sîrbu, representing the deluxe line of Augustin watches.

Movement: Swiss automatic, ETA 2892 caliber, modified, with three extra jewels. Case: 44-mm diameter, stainless steel, sapphire crystal.

Exotic, ostrich leather strap, handmade by Vasile Uglai.

JAQUET DROZ UPDATES THE GRANDE SECONDE DUAL TIME WITH A NEW DIAL DESIGN The Swatch Group decided to forgo Baselworld in 2019 and with its 12 exhibiting brands release their latest innovations on their own terms. While we've seen a number of releases slowly runaway throughout the first few months of the year, it's all led to the inaugural "Time To Move" event in Switzerland.

WatchTime was one of the select few American publications invited to attend the exclusive brand presentations, and we spent that time meeting with six of the Swatch Group’s most prestigious marques — Breguet, Blancpain, Jaquet Droz, Glashütte Original, Harry Winston, and Omega — to view the watches that would be defining the rest of the year.

Accompanying the surprise release of the Grande Seconde Monopusher Chronograph at the Swatch Group’s Time to Move event this year was the new-look Grande Seconde Dual Time collection, which received a brand new dial design in four total variations all sized at 43 mm by 13.13 mm.

For this aesthetic update, Jaquet Droz is building on the previous generation’s movement as well as the same figureeight dial layout that the Grande Seconde is known for. What’s new here is the placement of an azimuthal globe projection (a view of the Earth from the North Pole) in the bottom half of the dial. The globe presentation is executed nicely with the continents surrounded by a mirror-polished ocean in either black or anthracite.

Additionally, the 24-hour home time display is split into two distinct 12-hour segments: white for daytime and black for night, making the reading of the home time more intuitive. The local time, on the top half of the Grande Seconde dial, is regulated by jumping an hour, which makes it quicker to set the time on arrival at the destination. The date adjusts automatically to this change, and is indicated by a red-tipped hand that sweeps around a circular satin-finish applied ring. Essentially, what you’re getting with the Grande Seconde Dual Time is four displays set within two subdials: local time, reference time, date, and running seconds.

The automatic movement inside is, as previously mentioned, identical to the one that was initially developed for the previous generation of Grande Seconde Dual Time watches from 2016.

Visible through a sapphire exhibition caseback, the Jaquet Droz Caliber 2663H24 features a silicon escapement and pallet wheels and a skeletonized, fan-like rotor that allows ample viewing of the côtes de Genève and perlage decoration on the mainplate and bridges. In total, the Dual Time Grande Seconde offers a 65-hour power reserve. The four new versions of the Grande Seconde Dual Time come in stainless steel with either a black-onyx (with 18-karat white gold applied ring) or a silveropaline dial, or in 18-karat red gold with either an ivory or black Grand Feu enamel dial.

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LUXURY & LIFESTYLE - TOP BRAND

HOW TO BUILD YOUR OFFICE WARDROBE Your office attire should be polished, com­ fortable and injected with a dose of personality.

You might think that it’s easy to build an outfit for your every working day, but as a business man, you need to create a mature and stylish look that will inspire self­confidence and trust to your partners.

From colors to fabric, from cut to fit and to all the accessories needed to complete the look, here are a few tips you should take in con­ sideration when building your office wardrobe.

THE IDEAL SUIT COLORS

The formal suits colors generally accepted for the office attire are the solid shades of char­ coal grey and navy. The charcoal grey one is non­negotiable. When you start creating your office wardrobe, this is the first suit you should buy. The best part with this suit is that it’s ver­ satile enough so you can wear it at the office with a light blue shirt and tie, then you can switch to the evening dress code in the same suit but with a white shirt and black shoes.

After the navy and grey suits, you can experi­ ment with patterns like plaid, houndstooth or herringbone. And if you want to go even fur­ ther, in the latest trends, more vibrant colors like burgundy and green or light shades of blue

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are again on the radar. So you can skip the basics and choose a more daring suit. You can find excellent quality business suits in different colors and prints in TRENDS by Adina Buzatu store.

THE FABRIC

The best suits are those made of wool or a wool­silk blend which is a good option for all seasons. This fabric is full and heavy and it looks good on any type of body. But since it’s sum­ mer and the high temperatures require more airy fabrics, you can buy a linen suit especially for the hot season. There are brands that create linen suits especially for office attire.

THE RIGHT CUT AND FIT

In order to accentuate a classic look, choose a single breasted jacket and opt for a notched lapel over the peaked one. And always go for a two button jacket because it’s the safest bet to flatter your figure.

In terms of fit, you can go slimmer than ever.

Due to the latest trends in suits style, the slimmer the better. But be careful! This doesn’t mean that you need to get into super skinny trousers and jacket. Balance is the key. Your pants should follow your legs line but still make you feel comfortable when sitting down and

their hem should sit right at the top of your shoes. The jacket sleeves should end one­half inch above your shirt cuffs and your shoulder seams should not extend beyond your shoul­ der. In TRENDS by Adina Buzatu store you can get all the advice you need in order to choose the perfect suit for your business look.

THE SHIRT

When it comes to dress shirts, a classic clean cut in white cotton is the perfect choice to com­ plete your office attire. Still, since it’s summer and maybe you want to add a bit of color to your formal suit, you can go for light blue, pale pink and lilac. Regarding the fit, choose a shirt in a slim fit, never a version in a large cut. Stay away for those types of shirts with baggy sleeves and cinched cuffs, those with excess of fabric underneath the armpits or those that are very large around the waist. The best thing you can do is to shop your shirt at the same time as your suit, so that you get the entire outfit. If you can’t decide on shapes, size or colors, again, you can ask Adina Buzatu to guide you to your best options. Also, you can check the web­ site www.adinabuzatu.ro to see the items before you arrive in the store.

THE ACCESSORIES Once you have your basic outfit done, it’s time to accessorize! First thing first – the tie.

You can’t get your office look complete without the tie. Since the tie should reflect your person­

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ality but, in the same time, it’s meant to inject some creativity to your outfit, choose a strong solid shade or prints like classic stripes or in­ teresting florals or paisley. Definitely, stay away from florescent colors or childish patterns.

The pocket square is another essential accessory to add even more personality to your suit. Choose a printed one but never matched or in the same fabric of your tie.

Tie bars, lapel pins, cuff links they are all nice accessories that have the power to change your formal suit in a good way. But be careful on how many you use and how you match them.

Don’t overdo it! Use no more than one or maximum two accessories per outfit.

THE SHOES

Last but not least, the shoes that will finish your look are as important as the suit. Since the shoes are the indicator of your style, pay atten­ tion on how you choose and match them with the color of your suit. If your suit is navy or charcoal grey, stick with brown leather Oxford shoes. Black double monk­strap shoes are a good option, as well.

Now that you know the basic rules to follow and the items you must buy in order to build the right business wardrobe, visit us in TRENDS

by Adina Buzatu store, in Baneasa Shopping City ­ 42D Bucuresti­Ploiesti Road, ground floor, in order to personalize a complete outfit.

Enjoy your shopping, my dears!

AUTO

TESLA PICKUP TRUCK RENDERING IS THE MOST RUGGED EV EVER Teslas can save your life, save the planet and guard against people trying to scratch your paint. But they aren't immune to damage. Yet what if the company made something intentionally rugged? What if they revolutionized pickup trucks?

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spell another word after giving us "S3XY" with its first four cars.

Husmen's creation has only small traces of the original Tesla design language, like how the bumper forms the ghost of a grille or the sportylooking headlights. Everything else is different from the low-slung family of electric cars.

With about a foot of ground clearance, flood damage seems like a distant memory, while the roof is sleek and fully sloped, even over the truck bed. With boxy wheel arches and powerful bumpers, this seems more like a rival for super HD trucks, not the more common F-150 and Silverado.

The EV market is getting more and more crowded by the day, and even though the German and Korean rivals are mostly focusing on crossovers and sedans, The Model P would have one major adversary, the

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During the launch event of the Model Y "affordable" crossover, Elon flashed a picture of a truck on stage, which sparked the imagination of many creative individuals. This is one of their creations.

The first rendering of a Tesla pickup we shared dates back to 2013, and we'd like to point out how different that was compared to today's set of images, which come from designer Emre Husmen.

He's the man behind the SLE Shooting Brake renderings, in case this style looks familiar, but you can't really put your finger on it. Dubbed the Model P, it makes you wonder if Tesla is going to

Rivian R1T. But even if it ends up costing $150,000 people would buy it due to the distinctive nature of the project. This, in turn, would give Tesla the money it needs to fabricate a cheaper truck as well.

WILL TESLA BE TAKEN OVER BY FORD, APPLE OR TOYOTA? The NYU professor who foresaw that Whole Foods Market would be taken over by Amazon.com Inc. (AMZN) is now predicting that troubled electric carmaker Tesla Inc. (TSLA) will become an acquisition target in the near future.

NYU professor Scott Galloway expects shares of the Silicon Valley car company to plunge by 50% in the next year, making it prey to a takeover by a competitor such as Toyota Motor Corp. (TM) or Daimler AG. He also views it as likely that tech giants with ambitions to lead in autonomous vehicle technology such as Apple Inc. (AAPL) or Alphabet Inc. (GOOGL) could buy

WHO MIGHT BUY TESLA Ford; $38.2 billion Toyota; $196.4 billion Daimler AG; $56.3 billion Apple; $813 billion Alphabet; $772.6 billion Source: Business Insider, Investopedia

Tesla, according to a detailed story in Business Insider.

Ford Motor Co. (F) is cited as another possible buyer in a recent Fortune magazine story.

A takeover would amount to a drastic fall from grace for Tesla, once regarded as the glamorous electric car brand led by visionary entrepreneur and CEO Elon Musk. "I think investors are finally getting fed up,” said Galloway in a Recode podcast, per BI. "My prediction is within 12 months Tesla is sub $100 per share and it probably gets acquired because there's real value there."

Tesla, whose value was around $65 billion two years ago -- then far more valuable than General Motor Co. (GM) -- has been criticized for burning through cash and failing to turn a profit.

At the core of its woes are production and cost issues with its first mass market vehicle, the Model 3 sedan. Some bears now call Tesla a “restructuring” play rather than a growth story.

Tesla's value has decreased by roughly 50% since its peak in 2017 to $33 billion today. A continued fall as forecasted by Galloway, down

to around $17 billion, would make it easily digestible by acquirers such as Apple and Google, per the NYU professor. Both companies, with market values of $819 billion and nearly $775 billion respectively, are keen in developing autonomous vehicle technology.

If Tesla did fall by 50% it would be a tiny fraction of the market value of each of the two tech titans. Galloway estimates the hypothetical deal’s total value between $20 billion to $25 billion.

While GM and Ford are possible buyers, Tesla's value would have to fall ELON MUSK drastically -- to less than $10 billion -- to make a deal viable, wrote David Whiston, equity strategist in U.S. autos for Morningstar Research Services, in an email to Fortune. The odds of either automaker buying Tesla “could only potentially happen if Tesla’s stock fell well into the single digit billion market cap because it’d be too expensive for GM or Ford otherwise,” wrote Whiston, adding that GM or Ford “would rather try to compete with Tesla than buy it.”

Looking Ahead While Tesla’s desperation could make the automaker an attractive takeover target, CEO Musk is likely to be the wild card. “He’d have to be willing to sell his roughly 22% stake and in my opinion that’s something he would only do if it was the only way to keep Tesla alive,” Whiston told Fortune.

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AUTO

FERRARI’S MOST POWERFUL CAR EVER IS HERE - AND IT’S A HYBRID STUNNER The car is powered by a 4.0-liter turbocharged V8 that generates 769 horsepower and three electric motors for an additional 217 horsepower.

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Electrification is ubiquitous, but back when Ferrari launched LaFerrari, hybridization was a less-accepted notion, especially for a brand synonymous with powerhouse V-12s. Yet Prancing Horse clients and fans alike welcomed the concept, so as Ferrari planned to unleash its next salvo from Maranello, the inclusion of electrification was most decidedly on the table. Now, Ferrari brings us the SF90 Stradale, its most powerful road-going car ever. And it’s a plug-in hybrid.

The SF90 packs a eye-watering 986 horsepower, which is made in concert by a turbocharged 4.0-liter V-8—producing 769

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horsepower and 590 lb-ft of torque—and three lithium-ion powered electric motors, good for another 217 horsepower. While the combustion engine alone is the most powerful V-8 Ferrari has ever fabricated, the addition of the two electric motors—one on the rear axle and two in the front—the sum of the motors is uncompromising.

To get all that oomph translated to the road in tidy fashion, there’s an eight-speed dualclutch transmission that’s working with an allwheel drive system, the first time Ferrari has deployed AWD on a sports car. (The AWD GTC4Lusso is technically a grand tourer.) The

powertrain and drive set up afford some stellar speed figures. The sprint to 60 will happen in 2.5 seconds, and 125 mph will arrived in a staggering 6.7 seconds. Keep the accelerator buried and you’ll top out at 211 mph.

While it’s got more power than a LaFerrari, the SF90 is also about 30 pounds lighter than its cousin, clocking in at 3,461 pounds. That means it’ll turn in track times that are on-par with the LaFerrari. At Ferrari’s Fiorano test circuit, the SF90 notched about a 1:19 time, which is neck-and-neck with the LaFerrari’s 1:19:70.

You can run the SF90 solely off the electrical motors, with a range of about 16 miles, capped at 84 mph, and when you deplete that energy, simply plug it in to recharge. Four drive modes are found on

wheel inside the redesigned cockpit: eDrive, Hybrid, Performance, and Qualify. The first is for silent, combustion-less cruises, and the second will alternate power draws between the electric motors and the V-8. Performance will use the V-8 to help charge up the electric motor trio, while Qualify—such a great name for a driving mode on a road car—will give you maximum power from everything at once.

The big question Ferrari has yet to answer is price. Ferrari dealers say it will be less than the La Ferrari but likely more than Ferrari’s previous V8 mid-engine, the $350,000 488 GTB, which was recently replaced by the F8 Tributo.

Either way one thing is certain: the waiting list for the SF90 Stradale will be long.

Deliveries are expected to start in the beginning of 2020.

AUTO

SKODA VISION IV CONCEPT GETS DRIVEN, STILL LOOKS BRILLIANT Audi launched the first all-electric SUV in the VW Group, while the e-Up! city car now has sisters from both Skoda and SEAT. But the emobility revolution will come from the MEB platform, and the Vision iV previews Skoda's probable first version of the car.

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After several concepts, VW is about to launch the ID 3, a small electric hatchback also based on the MEB. Some 20,000 pre-orders have already been registered, meaning the group could

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become a huge player. The microbus, a sedan, and the Audi Q4 e-tron have all been previewed.

But to be brutally honest, the Vision iV is our favorite model, at least as a concept. iV is the name of Skoda's e-mobility brand, which already includes the Citigo EV and Superb PHEV. But this looks like nothing they currently have in production. The concept takes the shape of a wedgelike crossover, wider at the back and with Lamborghini-like shoulders.

Black trim contrasts against the yellow paint, and the LED lights cut straight through an interesting new grille design. Some of the elements will be kept for the production model, such as the shape of the steering wheel or the placement of the screen.

Skoda has the good habit of making concepts that are pretty close to the real thing, but it's been a while since one of them was available for test-drives. DrivingElectric takes the Vision iV for a spin around a car park, and although it can't be treated like a normal car, the concept is promising.

The attention to detail is amazing, with the L&K interior featuring Volvo-like pale wood inserts and futuristic vents everywhere. The high-range version should have 306 HP from two motors, one for each axle, while the base model should have just one rear motor with about 204 HP. Obviously, it's not going to be cheap, but you should be able to buy one for around â‚Ź40,000, about half the price of an Audi e-tron.

BENTLEY ROLLS OUT THREE SPECIAL MODELS IN MATCHING SPECS

The Silver Sisters is how these three are called, and they’re not celebrating the 100th anniversary of Bentley. They’re honoring the Manchester retailer in the United Kingdom, which turns 25 this year.

The Bentayga, Continental GT coupe, and Continental GT convertible are painted in Stratos Silver. The color is unique to Bentley Manchester, having been previously used on three occasions since 1997. Black chrome, a carbon-fiber diffuser, and Beluga leather are a few of the highlights along with the “25” motif stitched into the headrests.

while the luxo-SUV makes use of the MLB Evo and a torque-converter automatic.

Peak torque is rated at 900 Nm (664 poundfeet) for both models, but there’s a difference in terms of output (635 PS for the Continental GT and 608 PS for the Bentayga). On the other hand, the Bentayga Speed mirrors the ponies developed by the Continental GT.

Grand Black veneer, 22-inch alloy wheels, and gloss-black brake calipers are also featured. “We are delighted that Bentley Manchester is celebrating its 25th birthday with such a beautiful trio of bespoke cars, especially in the same year that Bentley celebrates its centenary,” said regional manager Sarah Simpson.

Crafted with utmost attention to detail by Mulliner, the Silver Sisters all share the 6.0-liter W12 with two thumpin’ great turbochargers for good measure. The platform and transmission, however, are different from the Continental GT and Bentayga. More to the point, the 2+2 grand tourer utilizes the MSB and a dual-clutch gearbox

Thanks to all-wheel drive and the lower curb weight, the 2+2 grand tourer is much obliged to hit 100 km/h (62 mph) in 3.7 seconds. On the straights, the Continental GT peaks at 333 km/h (207 mph). To put that velocity into perspective, the Ferrari 488 GTB tops at 335 km/h (208 mph).

Priced at approximately $200,000 in the United States, the Continental GT is more expensive than the Bentayga. The V8-engined version of the utility vehicle starts at $165,000 excluding destination, but not long now, the Continental GT will welcome the 4.0-liter twinturbo V8 as well

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SKAI MAKES SCI-FI MOVIES MORE REAL THAN EVER

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Flying cars are closer and closer to reality and this incredible air vehicle concept is here to prove it. Developed by Alaka’i Technologies with the help of the brilliant people from BMW Designworks, Skai aspires to be the world’s first hydrogen fuel cell powered vertical take-off and landing (VTOL) air vehicle.

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BMW Designworks was in charge of the design and the futuristic styling of this air vehicle, and we have to admit it looks simply gorgeous, with its large windows, glass roof and wide sliding doors. The sleek design is complemented by a carbon composite airframe and ultra light landing skids as well.

The interior feels minimal, but with the five seats arranged in a V-formation, the views are taking over everything else.

The seats are made from impactabsorbing materials, with four-point harnesses and leather upholstery.

The most impressive part of the whole air vehicle is the power train. It consists of six electric motors powered by three hydrogen fuel cells, each of them outputting 134 hp, pushing the craft to a max speed of 118 mph (190 km/h). The fuel tank will most likely have between 200 and 400 liters (53-106 gallon), giving the vehicle a range of up to 400 miles (644 km) and a total of 4 hours in the air.

The Skai is currently in the testing phase and it promises that no helipad or runway will be needed for operation, being able to land on rooftops, driveways or parking lots. Autonomous flight is also possible but forbidden by the current FAA regulations.

THE 2019 DUCATI SUPERSPORT SHOWS OFF A GORGEOUS TITANIUM LOOK I guess the most obvious of questions is this one: do you appreciate the change in color? The 2019 Ducati SuperSport has left the traditional Ducati Red behind, with the Italian bike builder announcing the introduction of a brand new color. Called Titanium Grey, this shade adorns the bike’s body in a cool matte grey finish, while the frame and the wheel rims show off a contrasting red look.

There’s no change in pricing, though, which means that Ducati will keep selling the SuperSport at $12,995 – or $14,995, for the SuperSport S. It’s somewhat easy to guess

which one would you rather go for.

Although the Ducati SuperSport was first introduced in 1972, the current model is well worthy of being called ‘SuperSport’. The iconic bike now benefits from a 937 cc twin-cylinder Testastretta engine, resulting in 110 ponies complemented by modern safety features such as ABS and traction control.

A compact instrument panel, complete with an LCD display, keeps the rider informed and up to speed at all times. Feel free to configure your very own Ducati on the company’s official website, or just go for the S version, that comes with Quick Shift up/down, a special passenger seat cover, and a 48 mm Öhlins fork, among many other goodies. Rain or shine, this Ducati will put a smile on your face.

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