BR/02/2018 by Business Review

March, 2018 / Volume 22, Issue 2

www.business-review.eu

M&A MARKET PREPARES FOR CONSOLIDATION

PURCARI SURPASSES CRISIS TO MAKE BVB HISTORY

ECOTOURISM SUN RISING IN ROMANIA

BUCHAREST AND BUDAPEST VIE FOR EUROPEAN ENERGY INFLUENCE 40

PAS T 20 years of revolutionizing Romania

www.business-review.eu Business Review | March 2018

• Editorial •

EDITORIAL 3 REAL ESTATE

Anda Sebesi • Editor-in-Chief •

6 Bucharest subway plans see developers train sights on property market

COVER STORY

PA ST Two decades of profound change Although Romania still lags behind its European peers in some sectors, in the last two decades the country has made great strides in several key industries. To mark its own 20 years on the local market, Business Review has decided to present some of the most influential fields that have changed the face of Romania during this

12 Talking smart in the real estate sector 14 Artificial Intelligence is ‘eating the world’ 20 Romania motors into auto revolution 26 Private medical players find market fit for growth

time: real estate, technology, banking, retail, automotive, advertising, healthcare and entrepreneurship. Each of these sectors has contributed to what Romania is today, either putting it on the map

STOCK EXCHANGE

of large international investors or bringing a significant added value to our day-to-day business and lifestyles. Any company that operates in a highly competitive market, which describes the local economy right now, is only as good as its people. With this in mind, on the occasion of the 13th Business Review Gala Awards – BR magazine’s flagship event that recognizes the outstanding achievements of the business community – we have chosen to dedicate a special article to some inspirational stories selected by the Business Review editorial team from all the candidates for this year’s edition, winners and nominees alike. We hereby present to you the tales of 22 initiatives, people and companies that deserve public recognition for their efforts and

34 Grape expectations: Purcari surpasses crisis to make BVB history

contribution to the Romanian economy and society beyond any award or diploma. They keep the country moving forward because they believe that change comes from inside each of us. They have made a way of life from top performance and for that they deserve their stories to be heard. They stand among those who have changed the face of Romania in the last two decades!

41 Who’s afraid of the big bad... AI?

FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Anda Sebesi, DEPUTY EDITOR-IN-CHIEF: Simona Bazavan JOURNALISTS: Georgiana Bendre, Georgeta Gheorghe, Otilia Haraga, Daniela Oancea, Romanita Oprea, Ovidiu Posirca, Oana Vasiliu HEAD COPY EDITOR: Debbie Stowe, COPY EDITOR: Eugenia Pupeza, PHOTO EDITOR: Mihai Constantineanu, ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc Notes Media, ADDRESS: No. 10 Italiana St., 2nd floor, ap. 3, Bucharest, Romania, LANDLINE: Office: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise, BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi, SALES DIRECTOR: Ana-Maria Nedelcu, SALES MANAGER: Alexandra Rosca, EVENTS MANAGER: Mara Dragoiu, MARKETING: Marius Andronic PRODUCTION: Dan Mitroi, DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

www.business-review.eu Business Review | March 2018

4 NEWS

WHO’S NEWS

EUR 6.46 billion in 2017 y/y, according to the National Bank

BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at georgiana.bendre@business-review.ro

of Romania (BNR). Compared to Q3 2017, the economy grew by 0.6 percent on seasonally adjusted terms in the last quarter of 2017. “While we expected a slowdown, as suggested by soft data like the Economic Sentiment Index (ESI) and weaker q/q retail sales, the flash GDP estimate is certainly disap-

Adina Damaschin has been promoted to counsel at Schoenherr & Asociatii SCA. Damaschin has considerable experience in assisting on cross-border and local financing, with a particular focus on acquisition finance and real estate finance. She also assists financial institutions operating in Romania in relation to their transactions or day-to-day business. In her 13 years of professional activity, she has worked as a lawyer for a series of international law firms active in Romania.

pointing, even for conservaRomania’s economy grew by 7 percent last year

Romania leads EU economic growth in Q4 2017

year had the best performance on record, and heavy fiscal stimulus in the last quarter,” said analysts at ING Bank. In late February, Eurostat

By Ovidiu Posirca

reported that Romania had

Romania’s economic growth

a flash estimate that Romanian

risen one position in the rank-

was the highest out of all

GDP had grown by 7 percent in

ing of minimum wages across

member states in the fourth

2017, marking the biggest expan-

the European Union at the

quarter of 2017, revealed Euro-

sion since 2008.

start of 2018.

Economists say that the

While previously, Roma-

increase of public sector pay

nia had the second lowest

The local economy grew by

coupled with the reduction of

minimum wage in the EU, the

7 percent in Q4 2017 versus the

taxes fueled consumption and

increase in the gross minimum

last three months of the previ-

economic growth, despite creat-

wage to RON 1,900 (EUR 408)

ous year.

ing external imbalances. For

starting this year pushed the

instance, the current account

country up one spot.

European Union.

page 5

negative considering the acceleration in industry, which last

stat, the statistics office of the

Emanoil Dascalu has been appointed construction director for Romania at CTP. He will oversee the company’s construction projects throughout the country. He has extensive experience in construction management on all real estate segments and previously coordinated the development of a network of multiple warehouses, hypermarkets, and office buildings. His 20-year career includes key positions in various local and international companies. He also worked as state secretary at the Ministry of European Funds. Dascalu graduated from the University for Construction Engineering in Regensburg, Germany.

tive estimates. It is even more

Meanwhile, the National Institute of Statistics (INS) issued

deficit widened by 85 percent to

Romania sees 26 initial coin offerings in early 2018 By Ovidiu Posirca Some 26 initial coin offerings

that compared to initial public of-

(ICOs) were recorded on the

ferings (IPOs) on the capital mar-

local market in the first two

kets, cryptocurrency-based ICOs

months of 2018, according to

are subject to a lot of volatility.

EY Romania, the professional services firm. The consultancy has warned

“A common ICO offer doesn’t have clients, revenues, and in many cases not even a func-

Companies raised USD 3.7 billion through ICOs in 2017

www.business-review.eu Business Review | March 2018

NEWS 5 Marcu, board president at MedLife, the private healthcare services provider. Key commercial players in Romania are uncomfortable with corruption, mainly because it affects market competition. “The business environment is polluted in Romania by so many companies that are distorting competition,” said Cris-

Laura Codruta Kovesi has been at the helm of the DNA since 2013

Private sector slams government attempt to unseat DNA head, urges action on corruption

tian Parvan, general secretary of the Association of Romanian Businesspeople (AOAR). Many voices in the business world are calling for improvements to the legal system, especially through the creation of specialized courts. “The business environment

By Anca Alexe, Sorin Melenciuc

Luiza Moraru has been appointed head of the asset services division for Central and Eastern Europe at CBRE. From this position, Moraru will guide and supervise almost 500 CBRE consultants performing asset management activities for office buildings and shopping centers in the CEE region. Her role is to align good practice and workflows at a regional level. Moraru has over 17 years of experience as a broker and retail consultant, out of which the last ten have been spent at CBRE Romania.

has a big problem regarding With the minister of justice,

political turbulence and protests,

commercial justice. We need

Tudorel Toader, having initi-

have spoken out against efforts to

specialized judges for commer-

ated procedures to replace the

impede the work of the DNA and

cial litigation and insolvency.

head of the anti-corruption di-

sabotage the fight against corrup-

(…) I’m not saying justice as

rectorate (DNA), Laura Codruta

tion more generally.

a whole isn’t important, but

Kovesi, representatives of the

“The DNA needs to exist and

Romania has to improve commercial justice,” Parvan said.

private sector tell BR that the

should be left alone to do its

fight against corruption must

job, because the only chance

“What does Romania want

continue, alongside reforms

Romania has to be a competi-

to do within the next five years?

within the court system, in or-

tive free market is for corruption

No one really knows. If you

der to avoid abuses and ensure

and bribery to be eradicated.

have EUR 10 million to spend,

better procedures for commer-

The business environment will

you don’t have any idea in

cial litigation. Local business

always be affected as long as

which sector to invest,” added

leaders, already accustomed to

there’s corruption,” said Mihai

the AOAR general secretary.

tional product. Often, the only fundament for an ICO is a white paper that describes the targeted technology and a small software application that proves how the tokens are issued and managed. Evaluations based exclusively on a white paper will always be risky and extremely speculative,” said EY Romania representatives. The company’s analysis of 372 ICOs at global level found that the issuing firms had raised USD 3.7 billion as of December 2017. Most of the ICOs came from the USA, followed by Russia and China.

Mindaugas Valuckas is taking over the country manager position for Hanner in Romania. Valuckas is currently member of the board of Hanner Group OU, with over 16 years of experience in Central and Eastern Europe. His career at Hanner began 13 years ago, immediately after he graduated. In 2009 he was appointed member of the board of Hanner AB and in 2013 he became CEO and member of the board of Hanner Group OU. He is responsible for all company activities. Carmen Dinca has been appointed marketing director at Dona group, where she will be responsible for the development of the Dona pharmacy brand. She has professional experience of over 20 years. Since 1992 she had worked at Colgate Palmolive, holding key positions in Romanian and Hungarian subsidiaries. Afterwards she held marketing positions at Wella Romania and Coca Cola Romania. In 2010 she founded her own marketing agency.

www.business-review.eu Business Review | March 2018

6 REAL ESTATE

Bucharest subway plans see developers train sights on property market With Bucharest set to have a new subway line linking the west and center of the city from 2019, property developers are planning new investments in this area, which is home to more than 300,000 people. By Ovidiu Posirca

The construction of the Drumul Taberei-Eroilor line is close to completion

onsultants say that we can expect

Calea 13 Septembrie, between Panduri, Pro-

sultants say the subway line will also support

new office and residential develop-

gresului and Sebastian roads. Some 15 hect-

the center-west of the city, which has become

ments in western Bucharest, but we

ares of land are available for development in

popular among office developers, with more

shouldn’t ignore the potential of northern

this area,” said the JLL specialists, who added

than five projects under construction here at

Bucharest, where a separate subway line is

that office and residential investments are the

present.

due to be built. The authorities want to link

right choice for this part of town.

the capital’s main train station with the Henri

“A number of investors have already

Travelling the whole of the line should take less than 15 minutes. Construction works

Coanda international airport as part of a EUR

shown their interest in this section of Bucha-

started in 2011 and were set to be completed

1.4 billion investment that will run well into

rest, considering that up to now the appetite

in 2014, but the deadlines were constantly

the next decade.

has been muted due to the lack of subway

extended.

lines, with the areas being central,” they

This time, officials at Metrorex, the opera-

WEST SIDE STORY: OFFICE AND RESIDENTIAL

added. The first section of the fifth subway line

net that the new line should become op-

Extending the subway infrastructure in Dru-

linking Eroilor and Drumul Taberei will run

erational in the first quarter of 2019. The

mul Taberei will alleviate traffic in this area,

for close to 7 kilometers, and have 10 stations

developer of the line now needs to install the

which has the highest population density

and a depot.

safety and automation systems. Siemens and

in the city, suggested representatives of JLL Romania.

In the first stage, the areas set to benefit more will be Eroilor and Razoare, followed by

tor of the Bucharest subway, told Economica.

Alstom are competing for the contract. “I think that Drumul Taberei will be reju-

Drumul Taberei, said Valentin Lupu, associ-

venated, both in terms of perception and traf-

extension of the M5 subway line is the land

ate director, capital markets at Knight Frank

fic, following the opening of the subway line.

parcel between the Razoare intersection and

Romania, the real estate consultancy. Con-

Any modern real estate development brings

“The area that will most benefit from the

www.business-review.eu Business Review | March 2018 May 2016

COVER REALSTORY ESTATE14 7

something new to the city, and the connectiv-

mixed-use projects with a strong office and

With the fifth subway line set to open after

ity with the cultural and historic center will

commercial focus outside Bucharest, is

five years of delays, investors are likely to be

have a strong urbanizing impact,” Andreea

planning an investment in the Piata Presei-

concerned that the sixth line, to the airport,

Paun, managing partner of Griffes, the real

Expozitiei area.

might also rack up missed deadlines.

estate consultancy, told BR. The total cost of the line stands at more

GTC, Impact Developer&Contractor and Atenor Group have bought land in transac-

The new airport line will have a length of 14.2 km and 12 stations. The authorities have already secured full financing

than EUR 600 million, with construction

tions worth around EUR 10 million

being handled by an association comprising

each, according to Colliers

Italy’s Astaldi and Spain’s FCC Construccion

data. The consultancy adds

alongside Romanian firms Delta ACM and AB

that this area has seen

Construct.

most of the land deals for

EUR 300 million from

office developments in

the European Bank for

Bucharest.

Reconstruction and

The project is being financed by EU funds and the European Anti-Fraud Office (OLAF) said in early February it had opened an investigation to check the development of the line.

for the investment with more than EUR 1 billion coming from the EU and another

Development (EBRD),

“Developers already

according to representa-

present in the proximity

tives of the Ministry of

of the origin of the sixth

Transport. The line will

OFFICE DEVELOPERS FLOCKING TO FUTURE AIRPORT LINE

line (1 Mai station) have al-

Meanwhile, in north Bucharest, developers

and have the first preleases, and it’s

have been kept busy over the past few years

probable that other players that bought land

and the hotspot for new investment has

to start their development without the sub-

the train link between Gara de Nord and the

moved to the area around Expozitiei Boule-

way (presence – e.n.) did so in smaller stages

airport by 2020. The existing rail line stops

vard, which doesn’t have a close subway con-

and with a bigger pre-lease rate in order to

2 km short of the airport. The state wants to

nection. Nonetheless, the new subway line

reduce risks,” Lucian Opris, senior associate,

build a tunnel below DN 1 and a train station

connecting Bucharest to Henri Coanda airport

office agency at Colliers International Roma-

at the airport to finish the project. It seems

will cross this area and might generate fresh

nia, told BR. From his perspective, developers

almost certain that passengers will be able to

office and residential investments.

might get a premium exit price if they decide

take the train right to the airport before get-

to sell once the new subway line is opera-

ting the chance to ride the subway.

“At the start of 2018 some transactions for the acquisition of land were sealed in the

have a transport capacity of

ready started the development

tional, but this will not be the decisive factor

50,000 passengers per hour. Meanwhile, the authorities hope to finish

“If we carefully map the geography of the

Baneasa area, close to the Tokyo and Washington (future names – e.n.) lines. These land plots will host multifunctional complexes, but also offices, with a projected stock of

in starting the investment. Opris also believes that the office projects

planned line and the existing developments, we see that outside the Baneasa node, where

over 50,000 sqm delivered in Baneasa alone,”

located on National Road 1 will also get a

there is already a crowd of projects and con-

said Paun. In the Piata Presei-Baneasa area,

competitive advantage once they get a sub-

struction, towards the north we have serious

some 200,000 sqm of offices will be delivered

way connection.

limitations regarding the availability of land

in the next few years from 2019, according to the Griffes managing partner. The development of some projects has

“For areas further than Jandarmeriei Street, residential will be the main beneficiary. In addition, I believe that experienced

that can be developed,” said JLL representatives. The consultants pointed out that the resi-

already started in the Pajura-Expozitiei area.

office developers will not make very bold

dential segment might develop north of the

Companies such as Portland Trust, GTC and

moves. Some of them might make specula-

airport in the Corbeanca and Balotesti areas,

Atenor have secured land to build offices,

tive purchases of land (at the best possible

if the authorities build a large car park at the

while Impact Developer & Contractor and

prices) close to the planned subway stations

end of the subway line. This would help the

Futureal will invest in the residential market.

and they will watch the evolution of the new

inhabitants of this part of Ilfov County com-

Iulius Group, which has been developing

line and the authorities’ activity,” said Opris.

mute into the city more quickly.

www.business-review.eu Business Review | March 2018

8 INTERVIEW

Anchor Grup: 20 years as a key player among developers Affan Yildirim, general manager of Anchor Grup, tells Business Review about the companyâ&#x20AC;&#x2122;s projects on the retail, office and residential market and highlights the major achievements of Anchor Grup on the Romanian real estate market. By Anda Sebesi

How much has Anchor Grup invested in Romania in the last 20 years? What strategic decisions have been taken on the local market in this period? In our 20 years of activity in Romania, we have invested over EUR 400 million. The strategic decisions were numerous, starting with our initial project: the development of the first modern shopping center in Romania. Two years after Anchor Grup was founded, we inaugurated Bucuresti Mall. It answered the existing demand for retail spaces together in one location (the ability to buy products from groceries to clothes and domestic appliances from the same place). Bucuresti Mall also became an urban landmark and the meeting place for trendsetters and fashionistas. Our second mall, Plaza Romania, was intended to be the shopping destination for an entire community: families and groups of friends could shop and pay utilities bills, as well as enjoy the entertainment provided by Movieplex Romania, the first Romanian cinema to show 3D movies. Apart from our reorientation toward office buildings (Anchor Plaza, Plaza Romania Offices, Metropol) and residential spaces (the premium complex InCity Residences), the renovation of Bucuresti Mall and Plaza Romania was another strategic decision. Refurbishing the two malls while still keeping them functional was a premiere in Romania, thereby consolidating Anchor Grupâ&#x20AC;&#x2122;s position as a key player among developers. This process required investments of over EUR 30 million, divided roughly evenly between Bucuresti Mall and Plaza Romania. The purpose of the renovation was to improve the usability of the space, both for customers and tenants, as well as to refresh the look of our malls, bringing it into line with current trends and clientsâ&#x20AC;&#x2122; demands. Furthermore, our tenants followed suit. Some 80 percent of them decided to refurbish their stores in order to bring the latest shop design into the two malls.

www.business-review.eu Business Review | March 20182017 November

Moreover, the renovation involved our

INTERVIEW 9

malls’ occupancy rates naturally led to an

first conversion of a retail space into an of-

increase in footfall and the amount spent on

Bucharest? Is it interested in developing projects in other Romanian cities?

fice space, a premiere for Anchor Grup that

purchases. As far as tenants go, we have the

We have noticed increasing demand for

resulted in Plaza Romania Offices. More than

largest Meli Melo Deco, Mango and Douglas

office space in the Romanian cities that are

half of its GLA (10,600 sqm) is now occupied

on the market, and our customers were hap-

renowned for their universities – such as Cluj,

by Mega Image.

py with the extensive array of products they

Iasi and Timisoara – and this is largely due

could find. In 2018, World Class will open

to the expansion of IT companies, which go

What were Anchor Grup’s main financial results in 2017?

a new fitness club in Bucuresti Mall, which

where their potential employees are. How-

required an investment of EUR 1 million, and

ever, this trend does not necessarily apply to

The turnover increased by approximately 12

we are interested in seeing the results of the

developers. As one of the key players in this

percent from 2016 to 2017, when it surpassed

convergence of this new segment of clients

field, we are always open to new and exciting

EUR 39 million. Today the group has 126

with our first shopping center.

opportunities, but as far as the present and near future are concerned, we do not intend

employees. Another important result was achieved through the optimization of the tenant mix in both malls: Bucuresti Mall and Plaza Romania have 99 and 97 percent occupancy rates respectively.

What’s Anchor Grup’s investment strategy in the residential segment? Are you planning additional investments, and, if so, in what locations? Yes, we plan to continue our expansion in the

What are the group’s business priorities for 2018? We are focusing on our

residential sector in 2018 and 2019. Anchor

to expand our portfolio beyond Bucharest.

What’s the group’s outlook on the local real estate market? Are there any trends that investors should take into account in the next few years?

Grup also owns plots in Voluntari, Fundu-

One trend, which we an-

lea and Berceni. In the medium term,

ongoing residen-

towards the end of 2018, we plan

tial projects. We

to develop a series of luxury

ticipated, should be obvious from our objectives: we

have started the

residential projects on

construction of a

plots that have already

residential

new residential

been purchased.

projects,

are prioritizing

at least for

complex on a plot of approximately 8,000 sqm close to InCity Residences. We have planned for the new complex to include

the next two

Is the group planning to expand its presence in the office market?

years. It is a market that stands out because

As far as the office market is con-

of its stability. The previ-

cerned, our priority this year is Anchor Plaza

over 200 apartments in several buildings with

Metropol. Works on the building were halted

ous crisis has made people more cautious

basements and several upper floors.

in 2009, but we have kept it all this time and

when it comes to buying apartments: they no

performed yearly technical assessments. In

longer buy them in order to resell them three

priority for us in 2018 is Pallady Towers. This

2015, works resumed and, two years later, the

months later for 10 percent more. Buyers’ de-

residential complex, situated on the Theodor

electric and mechanic installations were set

cisions nowadays are much more informed.

Pallady Boulevard in Titan, will have two

up, as well as the façade. However, construc-

For example, we had some customers who

blocks with 200 apartments. The first stage

tion was not completed. The building has a

took as much as six months of discussions

of the Pallady Towers project, which has 109

rentable area of approximately 35,000 sqm

in order to make up their minds about InCity

apartments, started in the autumn of 2017

and, as such, is suitable for large lessors, such

Residences. The banks are aware of this trend

and will be available for owners to move into

as a private hospital or a hotel; therefore

and are therefore willing to finance worthy

in September 2018.

Anchor Grup’s intention is to complete it

residential projects.

Furthermore, another project that is a

Another one of Anchor Grup’s objectives is

according to the specifications of the future

Another example is relevant to the resi-

the prioritization of the sustainable growth of

tenants. That allows us to obtain maximum

dential market. If you buy a flat in a Central or

our turnover, while continuing to rely only on

flexibility regarding the possibility of adapt-

Eastern European capital and rent it out, you

internal capital resources.

ing the building to the requirements of the

get the return on your investment in 20 to 30

lessors. When it is delivered, the new building

years. If you do the same in Bucharest, you

will double the area of the group’s current

get the return in about 12 years, or a maxi-

office space portfolio.

mum of 17 years, if it’s a luxury apartment.

What were the results of the Bucuresti Mall and Plaza Romania shopping centers in terms of sales and occupancy rates in 2017 and what are the targets for 2018? The approximately 4 percent increase in both

As far as residential projects are concerned,

How does Anchor Grup perceive the development of the real estate markets outside

Bucharest remains full of opportunities for investors.

www.business-review.eu Business Review | March 2018

10 COVER STORY

PAST

www.business-review.eu Business Review | March 2018

COVER STORY 11

20 YEARS OF REVOLUTIONIZING ROMANIA Although Romania still lags behind its European peers in some sectors, in the last two decades the country has made significant steps in many key industries. To mark its own 20 years on the local market, Business Review presents some of the most influential industries that have changed the face of Romania during this time: real estate, technology, banking, retail, automotive, advertising, healthcare and entrepreneurship. From corner shops to integrated retail centers where you can do your weekly shop, catch a movie, pick up some presents or redecorate your home, to mixed residential projects and skyscraper office buildings, the changing real estate sector has remodeled our daily lives, as well as the face of our cities. Technology has greatly influenced many industries - from simply doing your shopping online to IoT and AI - and made going about our day-t0-day business easier and smarter. The past two decades have also seen the emergence of new sectors in Romania, such as private healthcare services, advertising and entrepreneurship. With some inspirational individuals who started their businesses in their apartments having today become successful role models both at home and abroad, the last 20 years have created a generation of entrepreneurs and leaders who have gained international recognition. Last but not least, from just two local car brands, Romania has managed to attract large investors to the automotive sector and speed into 11th position in Europe by annual car production. By Ovidiu Posirca, Anda Sebesi, Georgeta Gheorghe, Romanita Oprea

www.business-review.eu Business Review | March 2018

12 COVER STORY

Talking smart in the real estate sector Since the start of 2000, when the Bucharest skyline boasted just a few office buildings, a major influx of foreign investments has led to massive development in all parts of the capital. In the past few years, developers have also started pioneer investments in several large cities outside Bucharest. Looking ahead, smart and sustainable are the key principles that will drive investments in property across the country, predict pundits.

By Ovidiu Posirca

rom an office stock of 168,000

middle and upper-class buyers. The

sqm in 2004, the total surface

main generator of demand in the mass

reached 2.7 million sqm at the

market segment was the state-backed Prima Casa program.

end of last year, according to estimates.

“The facilities offered by residential

Moreover, the office stock outside Bucharest climbed virtually from scratch

complexes must be innovative: smart

to 690,000 sqm.

house integrated solutions, ‘green’ certified residential buildings (light-

In the past decade, we have started to see buildings that are friendlier to

ing, heating, insulations), electrical

the environment and more accessible

vehicles, and green areas such as parks

to the new generation of employees.

and playgrounds. Another important

Investments in green projects are set

facility is the socializing areas, as the

to mark the industry in the next year,

need for a selected community is quite

according to consultants. Developers are also poised to continue

obvious. When we discuss large projects, [we talk about] gym, shop-

investments in mixed-use projects that have office and residential

ping areas, schools, kindergartens, leisure facilities such as pools,

components, although investors are also starting to include wider

coffee shops, and why not bars or pubs, as the trend is for people to

commercial spaces.

relax in the proximity of their home,” said Bogdan Iliescu, associate,

“Green office buildings will continue to appear on the Romanian market, driven by demand from the young generations and the

residential, at Crosspoint Real Estate. Iliescu says that an emerging trend in the residential market, mir-

increasing global need for sustainable developments. We are already

roring office investments, is targeting buyers that want to upgrade

noticing a trend towards campus-style developments, with green

their living experience. In this category you can find professionals

areas and interior gardens. Aside from the energy efficiency aspect,

from IT&C and financial services, but also freelancers.

developers will also need to pay more attention to buildings’ interi-

“They opt for a good location in semi-central areas with access

ors: green walls and roofs, an increased integration of daylight versus

to public transport and in proximity to established or new business

electrical light, fresh air intakes. Given these circumstances, 2018

areas, with all the facilities at hand, for living purposes, and not

and the following years will see a rising trend in the development of

to rent. Consequently, major developers and investors are looking

green office buildings,” Simona Urse, associate director of the office

for land and development opportunities in better areas than the

agency at Crosspoint Real Estate, told BR.

outskirts,” said Iliescu.

The offices of the future should be focused on a friendly, connect-

Looking at the evolution of the market over the past decade, pric-

ing environment, where people like to hang out, according to a study

es haven’t yet bounced back to the peaks of 2007-2008. For instance,

by Savills.

the price per sqm for a new apartment in Bucharest was EUR 2,307 in

“Older people will live and work longer and more flexibly through the use of new technologies. Telecommuting will increase, together with the need for high quality, flexible working space,” said the real estate consultancy.

January 2008, while in January 2018 it stood at EUR 1,350, according to data from Imobiliare.ro. For land plots in Bucharest, the cost per sqm sank from EUR 933 to EUR 184 over the same period.

Millennials will also constitute 47 percent of the workforce across Europe by 2025, and by this time we will start to see more developments under smart cities principles. In the two decades to 2030, the number of older workers (55-64) is also expected to increase by 15.5 percent. Meanwhile, the residential segment has recovered following the crisis of 2008, with more developers working on projects targeting

TOTAL OFFICE STOCK AT END-2017 Bucharest Other cities Total

2.7 million sqm 690,000 sqm 3.39 million sqm

Source: Crosspoint Real Estate

LAND PRICES IN BUCHAREST January 2008 January 2018 Source: Imobiliare.ro

EUR 933/sqm EUR 184/sqm

www.business-review.eu Business Review | March 2018

COVER STORY 13 - PARTNER CONTENT -

2017’s real estate market in review and prospects for 2018 Dorel Nita, head of data and research at Imobiliare.ro and project manager at AnalizeImobiliare.ro, highlights the main features of the real estate market last year and gives a short overview of 2018. Last year we celebrated ten years

2017 reflect a downward trend both

since Romania joined the European

from the previous quarter (-22%) and

Union, in 2007. In the meantime, the

from Q4-2016 (-18%). The most signifi-

real estate market went through

cant drop compared to Q3-2017, of

a complete economic cycle and

-25.6%, was registered in Constanta.

residential property prices across the country increased by 30%. Just like in

In the last four quarters, demand

2007, we are going through a phase of

for residential properties (apartments

economic expansion and rising prices

and houses – new and old) in the six

due to strong market demand and the

largest cities in the country increased,

active development of new dwellings. In 2017 the market registered a price increase of just 9.1%, lower than in 2016, when

prices in Iasi remain under the EUR 1,000 /sqm

overall, by 5%. Our analyses revealed that Bu-

threshold, at EUR 950/sqm.

charest was the only city where demand fell,

Our analysis revealed that in Q4-2017, com-

down by 7%, while in the other five cities it

prices increased by 12.4%. This attenuation

pared to Q4-2016, Bucharest had the lowest rise

increased by up to 42% in Iasi, 30% in Brasov,

of rising prices is due to a series of “disturb-

in average price, of only 7.7%. In the meantime,

24% in Cluj-Napoca, 12% in Constanta and 6%

ing” factors that are common in a phase of

the other six analyzed cities registered a rise

in Timisoara.

economic expansion.

in average prices higher than 8%: 18.9% in Cluj-

In the past year, the real estate market

Napoca, 11.3% in Constanta, 9.4% Timisoara and

faced some external “disturbing” factors

Brasov, and 8.6% in Iasi. The real estate market in

such as:

Bucharest had a tough year, as this was the only

• The devaluation of the national currency

city in Romania that registered a price drop in

(RON) against the major currencies

the last four quarters: down by 1.1% in Q3-2017.

• The exhaustion of Prima Casa program funds increased bank loan deposits for buyers • The rapid growth of the ROBOR index (at 3 months) – from 0.87%, in August, to 2.22%,

A survey conducted by Analize Imobili-

in December – made the public reluctant to

are and Imobiliare.ro revealed that in the

take out bank loans

last quarter of 2017 over 1,500 residential

We also identified some internal “disturb-

projects (with more than 30 units/project)

ing” factors that influenced the real estate

were under construction or planned to begin

market in 2017:

in the next period (having recently obtained

• A decrease in the number of properties

For residential properties (apartments and

authorization or in the process of obtaining

available for sale in major cities, resulting in

houses built before the year 2000) available for

the Zonal Urban Plan), in the ten major cities

a slowdown in the number of transactions

sale in the six analyzed cities, the data from Q4-

of the country (and surroundings).

• Insufficient supply of new builds com-

From our real estate market data, we can

pared to demand (56% of potential buyers

conclude that 2018 could be a year of price

want to acquire new buildings, at national

stabilization or, at least, one of moderate

level).

price increases. Of course, the Romanian real

At a national level, the most expensive

estate market is still a young one, with no

apartments are located in the major regional

strict legislation that can temper the price

centers (Cluj-Napoca, Bucharest, Timisoara,

demands of owners or real estate develop-

Constanta, Brasov and Craiova), with an

ers; therefore, the next ten months could

average price/sqm of over EUR 1,000. Average

also take us by surprise.

www.business-review.eu Business Review | March 2018

14 COVER STORY

Artificial Intelligence is ‘eating the world’ Telecom companies have celebrated 20 years in the Romanian market and what a period it has been. From clunky mobile phones dubbed “bricks” and the squeaky sound of slow dial-up connections we have moved to extremely powerful devices that are processing impressive amounts of data in complete silence.

By Ovidiu Posirca Internet of Thinking.

oving from little over half

For instance, companies looking

a million users in 1998 to

to harness the potential of AI must

more than 26 million in the

first half of 2017 proved an impressive

acknowledge its impact on people’s

feat for telecom players, which have

lives. Some are already calling for the

made constant investments in technol-

regulation of AI, and entrepreneurs

ogy. Their next milestone will be the

with global reach, such as Elon Musk

deployment of the new 5G wireless

and Pether Thiel, support research into

infrastructure, which should happen

safe artificial general intelligence. “AI will be the best or worst thing

locally by 2020. Through such investments, autonomous driving will edge

ever for humanity,” said Musk, the

one step closer to reality in large cities.

founder of Tesla and SpaceX, in 2017. On the other hand, Facebook’s founder

And the disruption doesn’t stop

Mark Zuckerberg has criticized the

here. The financial sector is ripe for massive changes due to blockchain

doomsday scenarios for AI, suggest-

technology, while consumers are

ing that instead it can help the world get better. The economic benefits of

becoming more reliant on the gigeconomy with the uber concept being adapted to everything from

AI have already been estimated. PwC forecasts that AI will provide

transport, to food deliveries and home cleaning.

a USD 15.7 trillion boost to GDP worldwide by 2030. China is set to

In spite of the expansion of interned-based companies, Roma-

receive the greatest economic benefits (USD 7 trillion) as AI is inte-

nians’ online access has remained below EU norms. Some 64 percent

grated into various industries. The impact on Northern Europe is es-

of Romanians aged 16-74 had used the internet in the past three

timated at USD 1.8 trillion, while the figure for Southern Europe has

months, while the EU average stood at 84 percent, according to a

been put at USD 0.7 trillion. North America will boost its economy by

survey carried out in 2017 by Eurostat, the statistics office of the EU.

USD 3.7 trillion due to AI.

“Software is eating the world, but AI is going to eat software,”

Manufacturing is set to reap the most benefits from adopting AI

said Nvidia CEO Jensen Huang, in an interview with MIT Technology

technology. Accenture estimates the benefits of the use of AI at USD

Review in mid-2017. The company has been one of the beneficiaries

12.2 billion by 2035. Professional services will gain close to USD 10

of the artificial intelligence investment boom as it makes hardware

billion, while wholesale & retail and financial services will grow by

for machine-learning algorithms used in the research of autonomous

USD 8.4 trillion and USD 4.6 trillion respectively.

driving.

HOUSEHOLDS’ LEVEL OF INTERNET ACCESS* WHO BENEFITS MOST FROM AI Companies are weaving themselves seamlessly into the fabric of how people live today through technology, agreed 84 percent of 6,300 IT managers and executives surveyed by Accenture. “Just as cities developed around ports and then railroads, or people rebuilt their lives around electricity, the world today is reimagining itself around digital innovation – and, by extension, the companies that provide those services,” said Paul Daugherty, Accenture’s chief technology & innovation officer. The company has identified five emerging technology trends that companies need to be aware of: Citizen AI, Extended Reality, Data Veracity, Frictionless Business and

2008 2013 2017 Romania 30% 58% 76% EU average 60% 79% 87% *percentage of households Source: Eurostat

NUMBER OF MOBILE PHONE SERVICE USERS: Year 1998 2017 (H1)

Users 0.65 million 26 million

*based on valid SIM cards Source: ANCOM

Penetration rate (per 100 inhabitants) * 132.6%

www.business-review.eu Business Review | March 2018

COVER STORY 15 - ADVERTORIAL -

Vodafone celebrates Best Network certifications with daily prizes for customers and non-customers Vodafone Romania launched campaign

new version of My Vodafone application,

designed to celebrate with customers the

in September 2017, the number of unique

recent recognitions of Supernet 4.5G as

users increased by 35%.

the best network by P3 Communications

Recently, Vodafone Romania has been

and the fastest 4G network by Ookla.

certified for the fourth consecutive year

All My Vodafone app users, individuals

as the Best in Test mobile network in

using prepaid and postpaid services and

Romania, both for the quality and perfor-

companies, along with non-Vodafone cus-

mance of its data and voice services by

tomers, can participate in the campaign,

the independent auditor P3 Communica-

which rewards users with millions of

tions. It also achieved the highest score

daily prizes and with an Audi RS5 Coupé,

for mobile data services and provides

which will be awarded after a lucky

the best web browsing and YouTube per-

draw. Until March 31, 2018, any eligible

Supernet 4.5G. The winner of the Audi RS5 Coupé

user can win a prize by simply accessing the

will be decided following the lucky draw to be

campaign section in the application.

organized on April 12, 2018.

Vodafone Romania was also recognized as the fastest mobile network in the

“Vodafone celebrates you” campaign offers

In order to win one of the daily prizes and

formance overall compared to the other operators.

enter the final lucky draw for the big prize,

various categories of prizes, from city breaks

country for 4G technology, according to

the users just need to spin the lucky wheel in

in Europe, gaming consoles, free smartphones

tests performed by Romanian users in 2017

the campaign section of My Vodafone appli-

& tablets, action video cameras, discounts for

using Speedtest by Ookla, which showed

cation. In order for non-Vodafone customers

devices and accessories available in the online

the operator provides the highest average

to also enter the lucky draw for the grand

shop, defensive driving courses, to additional

download and upload speeds, as well as the

prize, they need to port their number in

chances for the big prize. Since the launch of the

lowest average latency.

Smart Bill founders: We have a product made by entrepreneurs for entrepreneurs The three founders of Smart Bill, Ioana Hasan, Radu Hasan and Mircea Capatina, hail the success of their company, whose turnover expanded close to four fold since 2014 to EUR 1.5 million last year. They were also able to attract EUR 1 million worth of private equity funding in 2016. By Ovidiu Posirca HOW DID YOU COME UP WITH THE IDEA OF FOUNDING SMARTBILL?

information and automating many tasks. Actual-

Our most important moment was the beginning

made by entrepreneurs for entrepreneurs.

ly, Smart Bill is all about the customer, a product

of 2007, when we saw a new opportunity in the market: companies were allowed to issue invoices on the computer as well, not only on pre-printed

WHAT IMPACT DOES SMARTBILL HAVE ON THE INDUSTRY IN WHICH IT OPERATES?

paper as it was until then. So, Smart Bill was born

Our goal was to create a solution that is acces-

after months of very hard work from morning till midnight. There were many competitors who saw this opportunity and a lot of them launched before us, but Smart Bill had some impor-

sible, user friendly and easy to use for everybody, no matter their field, industry etc. In terms of usability, Smart Bill is continuously working to keep

tant competitive advantages, that made it rise above the crowd in a

its position in line with the biggest players in the world, those

short period of time, becoming market leader as early as 2008.

worth billions of dollars. Unfortunately, in accounting, the software must be very localized, making it impossible to build a product that

WHAT IS THE BUSINESS’S POTENTIAL?

fits different international markets because of the specific regula-

Smart Bill is concentrating its efforts to become a business’s operat-

tions in those markets. Of course, this is an advantage for us in

ing system, at the center of its operations, providing crucial business

terms of competition.

www.business-review.eu Business Review | March 2018

16 COVER STORY

Banks looking to expand digital agility mode More than 20 years after the launch of the first credit card in Romania, the banking system has entered consolidation mode as it tries to keep up with the nimble tech companies that are harnessing innovation in the financial sector.

By Ovidiu Posirca

enders on the local market have

business due to FinTechs. A survey

continued to redesign their

carried out by PwC on 1,308 partici-

structure of physical branches as

pants, mainly CEOs, IT managers and other top management involved in

part of the digitalization process.

strategy and innovation, reflects this

While the number of employees in the banking sector has remained

feeling. Close to 90 percent of the

fairly stable at 55,000, the network of

respondents said that they believe that

branches had fallen from 5,000 to 4,800

part of their business is at risk of being

by the second quarter of 2017, according

lost to standalone FinTech companies

to statistics.

within the next five years. In Europe, this figure climbed to 89 percent in

Some of the largest banks on the market have continued to reconvert

2017 versus the previous year. Close to

branches into self-service units for

half of the respondents said they were

customers that don’t need any help for

ready to partner with FinTechs. The survey was based on responses

basic banking operations. Lenders have also kicked off investments in overhauling their online banking plat-

from 71 countries and across six regions. Moreover, 77 percent of re-

forms. Technology trends such as biometrics and facial recognition

spondents expect to adopt blockchain – the underlining technology

make room for the digitalization and portability of identities.

of Bitcoin – as part of an in production system or process by 2020.

Meanwhile, banks’ digital activity soared 22 percent to 92.7 mil-

Bankers have started to treat with suspicion the buoyant crypto-

lion transactions in 2016, according to eFinance portal. Out of this

currency market, and some of the largest lenders in the US and UK

total, 12.7 million were mobile internet transactions, while the rest

have begun to impose credit card bans on transactions with digital

came from desktops. Since then, the mobile ecosystem has contin-

coins.

ued to gain new innovations and the shift from contactless to mobile payments is gaining ground across the major markets. However, Romania is among the worst performers in terms of

Elsewhere, FinTech funding has soared by 41 percent in the past four years (compound annual growth rate), with over USD 40 billion in cumulative investment, according to PwC’s DeNovo platform.

internet banking usage. Around half (51 percent) of adult Europeans

Funding deals for FinTech in the EU had reached USD 1.8 billion by

use internet banking, while in Romania the figure stood at 7 percent.

the third quarter of 2017, versus USD 5 billion each in the US and Asia, according to CB Insights.

BANKS TURN TO FINTECH But now, banks can tap into a new source of innovation to support

THE FUTURE FOR BANKS IN PLATFORMS

their digitalization efforts. FinTechs, which are capable of collecting

By 2020, lenders are set to develop shared platforms that distribute

vast amounts of data, are being courted by lenders as they attempt to

products across all channels, according to a report by PwC.

improve the online experience for customers.

“Leading banks will make simplification a priority. They will

“While most incumbents are struggling to consolidate and man-

strategically redesign their business model, end-to-end. They will

age data and to offer digital customer-service experiences, FinTech

develop multi-year change programmes. And they will ensure that

companies are putting their spotlight on emerging technologies.

they have the organizational capabilities necessary to achieve the

(…) These developments include technologies such as enhanced

change,” said the authors of the report. Bankers are looking to sim-

biometric security, natural language searches, and chatbots. As they

plify the range of products, channels and prices.

adopt these solutions, they are not only focusing on enhancing client service but also on improving efficiency, reducing costs, increasing security, and making processes more agile. Blockchain, AI, and bio-

In terms of innovation, bankers in Europe see customer interfaces and core platforms as some of the focus areas by 2020. The survey carried out by PwC states that 97 percent of CEOs

metrics & identity management are high on their priority list,” stated

consider innovation a key priority for top and bottom-line growth,

PwC’s Global FinTech report.

but only 10 percent of CEOs view their organizations as innovation

Financial institutions are already worried that they might lose

leaders.

www.business-review.eu Business Review | March 2018

COVER STORY 17

Antonio Eram: ‘Our goal is to build a new national payment scheme’ The founder and CEO of Netopia mobilPay, Antonio Eram, tells BR how he started his entrepreneurial adventure 13 years ago and how he sees the future of his business. By Ovidiu Posirca HOW DID YOU COME UP WITH THE IDEA OF FOUNDING NETOPIA?

tion of all these transactions. After all, payments

Netopia was my step forward in the entrepreneur-

than that, there are other ways to be considered,

ship world after my resignation from Connex

cryptocurrency for example.

should be seamless. And this is our goal. More

Romania. It was a bold step back in 2005, since I had very little knowledge of being an entrepreneur. Like many before and after me, it was a mélange

WHAT IMPACT DOES NETOPIA HAVE ON THE INDUSTRY IN WHICH IT OPERATES?

of craziness and innocence, glazed with an “I will

Being the industry leader requires a lot of work,

change the world” approach.

dedication and smart use of resources. With a

Since then I have learned entrepreneurship the hard way, with

small team of highly efficient people, we have managed to establish

a lot of pivoting, many drawbacks, small and big dramas. However,

a significant presence in this field. We lead by innovation. The pay-

we managed not only to stay afloat but to prevail. Currently, we are

ments industry is continually changing with new players coming in

leading the payments industry. And this is just the beginning.

and old ones reinventing constantly. It’s tough but not impossible. In the last few years, we have made some bold steps in our business

WHAT IS THE POTENTIAL OF THE BUSINESS?

approach. For example, with our mobile payment solution mobil-

Online and electronic payments, even today, in Romania are still at

Pay Wallet, we are heading to a paradigm shift in mobile payments:

a meager 20 percent of all transactions. There are a lot of opportuni-

where a user can execute a payment regardless of the amount, the

ties until we reach 99 percent. With Netopia Payments and all our

location or the payment method selected. Our goal is to build a new

complimentary services, we are leading the way for the democratiza-

national payment scheme.

www.business-review.eu Business Review | March 2018

18 COVER STORY

Local retail market makes quantum leap Few imagined in 1998, when they walked to the corner store, that in 20 years’ time they would be able to flit between shops in a matter of seconds, without even leaving the couch. Or that the product of their choice could one day be just a click away, delivered straight to their door. And even fewer, perhaps, can picture today the impact that Augmented Reality (AR), Virtual Reality (VR) and Artificial Intelligence (AI) will have on the retail experiences of the future.

By Georgeta Gheorghe

ver the past 20 years, Romania’s retail market has experi-

ing to a Euromonitor report. Romania’s e-commerce scene has seen similarly spec-

enced a quantum leap. Modern

tacular development, growing

commerce took off after several

exponentially over the past

large retail players entered

few years, to EUR 2.8 billion in

the market, largely undevel-

2017, up 40 percent year-on-

oped and hence brimming

year, according to a survey by

with potential. To some, the

major Romanian retail players

1995 opening of the first Mega

and GPeC. In 2018, according to

Image store in Bucharest’s

a report by PayU, it is forecast

Lizeanu area marked the start

to exceed EUR 3 billion.

of the history of modern retail, while other see Metro’s 1996 expansion to Romania as the landmark move that set in motion the transformation of the local retail scene. In 2001, when French entrant Carrefour established a presence in

WHAT’S NEXT FOR ROMANIA’S RETAIL MARKET? Due to its characteristics, Romania’s retail market is the playground of an original mix of trends. The significant presence of traditional units in rural areas and small towns gives modern retail

Romania, Bucharest saw the opening of the first hypermarket, in the

significant room for growth compared to other markets. That is

Militari neighborhood.Things moved fast, and by 2004, modern com-

why the growth potential remains strong, and according to an Euler

merce represented 19 percent of the retail sector at national level. By

Hermes study, lies with chains that focus their expansion strategies

2008, it had already doubled to 40 percent and was valued at EUR

on towns with fewer than 100,000 inhabitants. Hence, in Romania,

5.2 billion, representing half of the retail market in just four years.

the significant forecast growth of e-commerce is not expected to

By 2013, modern commerce had reached 53 percent, overtaking tra-

come at the expense of that of modern retail.

ditional retail for the first time. Hypermarkets had the biggest share,

At the same time, online stores still see a point in maintaining

at 28 percent, followed by supermarkets (13 percent), while corner

offline stores and the market will see the creation of new stores that

stores had only managed to retain 2 percent of the market. Also in

will help them meet their clients in an environment that looks to

2013, Carrefour became the first retailer to open an online store that

replicate the online experience in the offline world.

sold products from its entire FMGC portfolio. In 2014, with 1,700 retail units nationwide, the sector was valued

More online retailers are expected to integrate technology within their business model and turn to AR, VR and AI in order to create

at EUR 8.7 billion. By 2016, Romania’s retail market was dominated

immersive, added-value experiences for their customers. In addi-

by four major chains, namely Kaufland Romania, Carrefour Romania,

tion, in order to stave off disruption, retailers are expected to try to

Metro and Auchan, which together had over 60 percent of the total.

become the disruptor themselves or partner with tomorrow’s dis-

At the end of 2017, modern retail in Romania represented 62.4

ruptors to create new retail ecosystems. Not least, Romania is also

percent of the market and counted over 2,000 units. Its value ex-

following the global trends that see brand authenticity and sustain-

ceeded EUR 11.1 billion, double the figure recorded in 2008, accord-

ability becoming increasingly important.

www.business-review.eu Business Review | March 2018

COVER STORY 19

Retail start-up JustNow to test with Mega Image solution to cut food waste Developed by Mihai Zant, the JustNow app promotes the sale of food in an accelerated sales process by mapping the available products. By Georgeta Gheorghe WHAT NEED DOES YOUR STARTUP MEET?

trends in demand-and-supply information so they

JustNow meets retailers’ need for food waste re-

can improve inventory and marketing. A second

duction as well as consumers’ need for good deals.

step in the app’s development will be an automatic

Being a marketplace, our startup allows retailers to

restocking system for retailers.

promote the food due to expire in two to five days, or more, in the accelerated sales process, therefore

YOUR BUSINESS MODEL IS DESIGNED TO INVOLVE COLLABORATION WITH RETAILERS AND SOON YOU WILL START TESTING ON THE ROMANIAN MARKET WITH MEGA IMAGE. WHAT IS THE REASON BEHIND THAT?

allowing consumers to find great deals and help prevent food waste. It helps food retailers improve stock management, reduce food waste and related costs, and offers them a smart mobile advertising tool.

Our model is based on collaboration with large retailers because they have shown an active interest in reducing food waste. Nev-

WHAT TRENDS DOES YOUR STARTUP BRING TO THE ROMANIAN RETAIL MARKET?

ertheless, we invite any food store that wants to use our app to a

Trying to prevent food waste is a trend across the EU, as are concern

and for us this is a perfect fit. Its convenience retail business model

over the environment and promotion of the circular economy. Our

is very suitable for our approach to consumers. We imagine our

business model is positioned one step before food donation, and

customer to be browsing our mobile app looking for deals, and,

in the future it will contribute to a centralized method to support

after finding one in a store nearby, heading to that store to take

donation. Also, JustNow uses Artificial Intelligence to show retailers

advantage.

discussion. Mega Image has expressed interest in testing with us,

www.business-review.eu Business Review | March 2018

20 COVER STORY

Romania motors into auto revolution With a post-crisis annual growth pace of 15 percent for the local automotive market, Romania is now ranked 11th in Europe by annual car production. Furthermore, the sector represents about 13 percent of GDP and a quarter of total exports.

By Anda Sebesi

he local car industry

concept car. “You can add

started to increase

augmented reality for a per-

speed when French

fectly integrated infotainment

carmaker Renault took over the

system, and the sci-fi imagined

Dacia plant from Mioveni, back

future is no longer so far away.

in 1999. Since then, its rapid

All this in a package that is pro-

development has been fuelled

duced and used in a sustain-

by a firmly established strategy

able way – renewable materials

for exports and the inspired

and a clean electric propulsion

positioning of the Dacia brand

system,” he adds. As it is part of a bigger mar-

on the international market. From an annual production of

ket, Europe, Romania needs

90,000 units at the end of 1990

to adapt to the new trends. In

to about 340,000 now, Dacia

the last year, for example, also

exceeded RON 20 billion in

thanks to impactful govern-

turnover in 2016. American gi-

ment programs, electric cars

ant Ford’s investment in the car

have become relevant and electric charging infrastructure

plant in Craiova, in 2007, was another significant driver for the sector.

is developing fast. “We have seen the rise of the first car-sharing program in Bucharest. We see that the automotive revolution is coming

CARS AT THE CROSSROADS

to Romania,” concludes Schulz.

The global automotive industry has reached the start of an unprecedented transformation. What is certain is that the cars in ten years – the way they are designed, produced, the propulsion system, the way we use them – will all change. “We are at the crossroads of a major paradigm shift. Digitalization, autonomous driving, electrification and the sharing economy – all these major global trends are the defining pillars of change for the automotive industry,” says Wolfgang Schulz, general manager of BMW Group Romania. He adds: “We can imagine a future of cars that are used in sharing programs, they arrive autonomously at our home (so we don’t need parking places in cities anymore), they know and adapt to the preferences of the user (from sitting position to entertainment systems, from exterior color to interior climate). Cars will not only be about getting from A to B; connectivity will transform them into digital hubs. You will have access to digital assistants like Amazon Alexa and to all imaginable digital services – from video streaming to in-car online shopping.” Schulz says that BMW for example has already presented functional haptic holographic controls on the BMW i Inside Future

Romanian automotive market milestones Fast development: Major investments in production have generated significant economic progress. It is not only about brands that are manufactured locally, but about the strong network of suppliers that both produce and develop advanced technology in Romania. Automotive retail: The late ’90s and early 2000s saw the opening of the first dealers and importers. After an early period of uncertainty and rapid learning curves, the market settled on a steep growth and developing path. The global came to Romanian automotive retail after 2007 and international knowledge and knowhow were duly transferred to the local market into advanced services. We slowly turned from cash purchases in the late ’90s to a leasing-predominant market. Electric mobility: Recent years have seen the start of electric mobility. The share is still well below 1 percent, but there are now committed players on the market and a continuously developing charging infrastructure. In addition, hundreds of electric and plug-in cars that are now running on our streets send out a clear and strong statement – electricity works in Romania too. Source: BMW Group Romania

www.business-review.eu Business Review | March 2018

COVER STORY 21

OPINION Brent Valmar, Kurt Leitner - Porsche Romania What’s next for Automotive in Romania?

Brent Valmar, General Manager Porsche Romania The automotive industry accompanied Romania’s economic growth over the past 20 years and Porsche Romania contributed to the sector’s evolution. One of the most important achievements of the industry is that the market continued to grow, even after the economic crisis that affected all the sectors and companies in Romania. Since we sold our

Kurt Leitner, General Manager Porsche Romania

first car back in 1998 until selling almost 100 electric cars in 2017, we are proud to look back at 20 successful years in Romania and confident the

The automotive world is influenced by digitalization and technology.

future will be brighter that the past.

The mega trends that are shaping the market are e-mobility, autono-

Electric mobility is a reality that will be visible all over Europe, including in Romania. The challenge with our market is the unstoppable hunger of the Romanian customer for second hand cars. The current car

mous driving and connectivity. The industry paradigm is changing as is the way of driving that we know. Digital services will create new and multiple touch points between

park in Romania counts approximately 4.6 million active units out of

our brands and customers. Technological innovation will enable higher

which 76% are older than a decade. Until we reconsider all the negative

levels of safety and convenience as cars better interact with their

effects that this situation is having on our market we will have difficul-

environments and assist their drivers. The demand for car sharing and

ties in adopting electrical cars.

ride sharing services will increase more and more as the customers will

There is a strong interest among car importers to strengthen their offer of electric models. Authorities too, support the trend and offer bo-

increasingly choose experience versus ownership. Internet in the car will be standard and the connected car is going to

nuses for electric cars acquisitions. The first customers will be multina-

offer an incredible wide range of opportunities. The control of the status

tional companies and groups which will renew their fleets with electric

of your car and information about the actual parking position via app

and hybrid cars. In parallel, the network of charging stations needs to

on your mobile devices is already a reality. But in future it will go much

grow. In the Porsche Romania dealers’ network more and more fast

further, even integrated with emergency services to assist drivers in

charging stations will be installed until 2020.

case of incidents.

On the other hand, the road infrastructure remains one of Roma-

Looking at the future, electric cars will become a normal part of our

nia’s most pressing challenges right now, both on national roads and

streetscape. Our target for 2025 is to achieve a sales volume of 12,000

inside major cities. Especially in city centers, traffic could be improved

electric vehicles per year, of a total of 50,000 units sold. And, of course

by implementing car sharing solutions, bike mobility options and by

we’ll provide the whole range of necessary charging infrastructure. Es-

investing in a more efficient public transport. Something that’s already

pecially in cities where speed is lover, the car itself will more and more

been tested by other European cities is the limited access for cars in the

takeover the steering wheel.

city centers, with benefits not just for relieving traffic congestion but

We are convinced that with our brands and the planned technologi-

also for reducing pollution. All of these should be included in a national

cal innovations and investments, we will make mobility for our custom-

strategy plan for modern mobility solutions in Romania, in order to

ers easier and more convenient and maintain our leadership position on

reach progress.

the Romanian market.

www.business-review.eu Business Review | March 2018

22 COVER STORY

20 years of marcomm brings maturity and skills on local market The Romanian advertising industry has ridden the capitalist wave and serves as a revealing guide to how the economy and culture have evolved over the years. While in 1998, the market consisted of just a few firms, today Bucharest alone boasts dozens of marcomm agencies, big and small. BR casts its eye back over two decades of the advertising business.

By Romanita Oprea

rom big, international

ing festival, Golden Drum, as

groups, such as Publi-

well as smaller regional festi-

cis, McCann Worldwide,

vals. The Romanian industry

Mullen Lowe Profero, Graffiti

held three major festivals of

BBDO, TBWA\ Friends, Ogilvy,

its own: Adâ&#x20AC;&#x2122;Or (for creativity),

Grey, DDB, FCB, and Saatchi &

EFFIE (awarding efficiency in

Saatchi, to successful indepen-

communication) and AdPrint

dent outfits such as The Group,

(the only European print ad-

GMP Group, Jazz Communica-

vertising festival).

tion, g7, Propaganda Creative

Meanwhile, in terms of

Services, Headvertising, Next

creativity Romania gained

Advertising, and Mercury360,

ground fast as several ROM

todayâ&#x20AC;&#x2122;s Romania is home to a

campaigns created by Mc-

varied and competitive adver-

Cann Bucharest won some of

tising scene.

the most prestigious trophies

This is still a very young

at Cannes Lions and a series

advertising industry, on which

of other major international

the earliest agencies began to

festivals. The local industry is influenced by the latest trends

launch in 1991, and soon gave up their independent status by joining big international networks. That was when it all began for the advertising industry in Romania. It was a time of great enthusiasm, when campaigns were created

shaping the industry: mobile power, social media rise, omni-channel communication, AI and Virtual Reality, and chatbots. The country is part of the big industry. Local campaigns are im-

more or less based on gut and feeling rather than knowledge, when

ported elsewhere in the region, Romanian agencies are working on

creatives were working long days and nights to complete and launch

regional accounts and taking part and winning international pitches.

their campaigns. It was a time that those involved remember with

There is no longer a difference between Romania and any other big

great pleasure, according to Petre Barbuâ&#x20AC;&#x2122;s (writer and famous jour-

advertising market, except the budgets and number of countries the

nalist specialized in media & advertising topics, nowadays contribu-

commercials and campaigns reach.

tor for Forbes Romania) book, My First Year in Advertising. It was

Moreover, the Romanian marcomm industry is not defined only

also a time of pure advertising. Other services such as PR, specialized

by Bucharest. Cities such as Cluj-Napoca, Timisoara and Iasi are now

services of media planning and buying, and online properly started

putting their imprint on it. While some years ago the trend was for

to develop slightly later. The independent PR agencies started their

international creatives to come to Romania and become creative

journey on the Romanian market after 1994. Slowly, agencies started to offer more services. The communication market first grew and diversified, and companies began to create

directors, setting the trend at multinational agencies, these days Romanians are making themselves known in key positions worldwide. Romania is also adjusting to the trend of group consolidations,

specialized BTL, online, mobile, and media planning and buying

as smaller and creative agencies join bigger, international networks,

departments, which afterwards became agencies of their own. Cre-

with only a few still plowing their own furrow on the independent

atives with experience at big multinational agencies saw the oppor-

side.

tunity and demand on the market and launched their own successful

All in all, insiders agree that the Romanian marcomm industry

agencies (Next Advertising, CAP, Headvertising, 23 Communications,

is starting to mature and define itself on the international creative

Friends, etc). Romania became a favorite of the biggest CEE advertis-

map.

www.business-review.eu Business Review | March 2018

COVER STORY 23

‘The advertising market followed the transformation of the Romanian people’ With more than 15 years working in advertising at major agencies such as D’Arcy and Odyssey, Irina Pencea launched Jazz Communications in 2012, alongside Diana Benko and Valentin Suciu. By Romanita Oprea HOW HAS THE ADVERTISING INDUSTRY IN ROMANIA CHANGED SINCE THE LAUNCH OF JAZZ?

THE MARKET TODAY?

2012 was a year of fear – budgets, business plans,

purpose of every company. Yet, for us, the share-

big decision, all on freeze. Fear of deciding, fear of

holders of Jazz, value means purpose, impact,

taking a risk, fear of investing was felt by every-

positive energy, before it means profit. Defin-

body, including us, the three crazy advertising-mad

ing the purpose for which people will join the

people turned entrepreneurs somewhat overnight.

company. Nurturing a culture that respects and

2018 is a year for courage – people in the streets

energizes its people. Maintaining a real connection

(quite a lot) showing the courage to take a stand for

with new generations and finding ways to inspire

what they believe in, brands (few, it’s true) show-

and bring their energy into the group, rather than

ing the courage to admit they are not perfect to

complaining about the differences. And yes, as for

Creating shareholder value is the by-the-book

the people who pay for their products, clients (few, yet again) taking

all Romanian entrepreneurs, there is also the struggle of facing the

risks to pilot new technologies, new platforms.

unpredictability of the ever-changing Romanian legislations and

I guess the advertising market has followed the transformation

regulations.

of the people of Romania: it has become more discerning, with more focus on authenticity, more demanding.

WHAT DO YOU PREDICT TO BE THE MAIN INDUSTRY TRENDS IN THE COMING YEARS?

WHAT ARE THE MAIN CHALLENGES FOR AN ENTREPRENEUR IN

Authenticity. Purpose. Entertainment.

www.business-review.eu Business Review | March 2018

24 COVER STORY

Entrepreneurship: Growth seeds must be sown early After the fall of the communist regime, during the transition from a planned economy to capitalism, Romanians eagerly embraced entrepreneurship. Many took this path by opening a small retail business such as a corner shop, while others made best use of their skills and background and took risks by venturing into unknown territory.

By Georgeta Gheorghe

hile many failed, in

closely intertwined with

the early 90s some

the evolution of the specific

founded the equiv-

political and economic factors

alent of America’s successful

shaping Romania in the past

garage startups in their own

20 years. The new generations

communist-era apartments. In

of entrepreneurs are testing

doing so, they became trailblaz-

their business ideas against a

ers in a market that offered its

very different background and

fair share of opportunities and

must deliver solutions for new

challenges.

needs, while enjoying unprecedented access to technology

With a turnover of EUR 1.17 billion in 2016, Dedeman is one

and resources and competing

such success story. Offering

on global markets. According to 2016 data

home improvement and doit-yourself (DIY) goods, it was

provided by Eurostat, Romania

famously started in 1992 by

had the lowest ratio of new

Dragos and Adrian Paval with

companies per 1,000 inhabit-

capital of DM 10,000, a Dacia

ants in Central and Eastern Europe, after Serbia, namely

and a corner shop in Bacau. What set the business apart, the founders believe, was its open-

23. That is why experts say that boosting entrepreneurship, the most

ness towards technology. In their shop, the Paval brothers, who had

fundamental driver of economic value creation, is key on a market

trained as IT specialists, kept the books on a computer they bought

that could be home to significant wealth creation, provided that it

in the very first month of activity. A key turning point came a decade

manages to channel its capacity to spawn new solutions to existing

into the life of the business, when after visiting several Western

problems. With 50 percent of the global population aged under 30,

European countries, Dedeman decided to change its business model

attracting young people to entrepreneurship becomes a crucial as-

and replace furniture shops with stores selling DIY and home im-

pect, given that, according to a 2018 survey by the World Economic

provement products.

Forum, millennials see the “start-up ecosystem and entrepreneur-

With a team of over 100 lawyers and valued at around EUR 15 million, NNDKP decided to enter the consultancy field in 1990, when

ship” as the most important factor contributing to youth empowerment in a country.

private businesses were only just starting to appear in Romania. Us-

From this point of view, according to experts, as success is in-

ing their experience acquired at a state-owned consulting institute,

creasingly perceived as a two-way street, cities are expected to start

Ion and Manuela Nestor set up their business at a time when their

competing even more to increase their role in attracting and nurtur-

peers were mostly deciding to provide traditional law services.

ing entrepreneurs by creating business incubators and accelerators

Using their apartment in a communist block in the Drumul Taberei

and offering co-working spaces and funding to facilitate a win-win

neighborhood of Bucharest, they used technology – such as a word

situation. In turn, in order to keep abreast of innovation, more large

processor, a photocopier copy and a fax machine – early on in order

companies are expected to adopt an entrepreneurial mindset to

to gain advantage over their competitors.

compete with startups, found a report by the World Economic Forum. Such initiatives, dubbed ‘intrapreneurship,’ come in the shape

WHAT’S NEXT FOR ENTREPRENEURSHIP IN ROMANIA?

of open innovation labs, corporate-sponsored hackathons, corporate

The development of today’s entrepreneurship champions was

accelerator programs for startups and more.

www.business-review.eu Business Review | March 2018

COVER STORY 25

In Romania there is space to create One of the jurors of the entrepreneurship program Future Makers, a program for entrepreneurs aged 20-29, Irina Anghel Enescu, young global leader at the World Economic Forum, is keen to highlight that when it comes to entrepreneurship, one should not draw a clear line between the challenges and opportunities. By Georgeta Gheorghe WHAT ARE THE CHALLENGES AND OPPORTUNITIES FOR YOUNG PEOPLE WHO WANT TO START A BUSINESS IN ROMANIA COMPARED TO ELSEWHERE?

COMES TO MENTALITY? One of the big challenges is a fatalistic attitude. Unfortunately, a lot of people get discouraged and it is difficult to start doing things if you are discour-

What I am keen to stress is that it is

aged. And the fact that there are

important to have both challenges

problems should make them think that

and opportunities, because those who

there is work to be done. Secondly,

thrive on chaos make good entrepre-

finding partners is a challenge. The

neurs and are fuelled by both of them.

Romanian education system does not

In order to set things in motion, you

prepare young people for teamwork.

need to see problems as opportunities and in Romania we have a lot of them to solve. As an entrepreneur, you can

IS THERE ANY SPECIFIC ADVICE YOU HAVE FOR YOUNG ENTREPRENEURS?

see the solutions if you look around and find meaning in satisfying

Early entrepreneurship poses specific challenges, which is why it

local needs.

is extremely important to have a mentor. Research shows that high growth entrepreneurship is found among people who have already

WHAT OBSTACLES SHOULD ROMANIANS OVERCOME WHEN IT

had a career in corporations.

www.business-review.eu Business Review | March 2018

26 COVER STORY

Private medical players find market fit for growth With private medical providers making large investments in their infrastructure, more Romanians now have a valid alternative to the dysfunctional public healthcare service.

By Anda Sebesi

t present, Romania’s public

to the medical system. Exponential

healthcare system comprises

technologies are helping to drive

366 public hospitals, down

that change by making care delivery

by 12.5 percent since the mid-90s.

less expensive, more efficient, and

Meanwhile, the number of Romanians

more accessible on a global basis. For

who needed hospitalization increased

example, in 1999, scientists spent five

from 3.8 million in 1995 to more than 4

months and approximately USD 300

million in 2016, according to Digi24.ro.

million to generate the first initial

Furthermore, since the liberalization of

“draft” of a human genome sequence.

the labor market in Europe, the public

The cost of generating a human ge-

system has been powerless to halt a

nome sequence is now less than USD

massive exodus of doctors: over 40,000

1,000 and could eventually drop to less

have left Romania in the last ten years,

than USD 1. In the coming years, expo-

according to data provided by the Min-

nential technologies have the potential

istry of Health.

to dramatically disrupt the systems and processes that have historically

Poor infrastructure and management in the public healthcare sector combined with the low quality of medical services and corruption sowed the seeds for the develop-

defined the industry. The same source says that with aging infrastructure in some

ment of private medical networks. As a result, players like Regina

developed countries and a lack of robust infrastructure in emerging

Maria, MedLife, Medicover and Sanador have managed to attract

markets, governments and private healthcare providers are rethink-

Romanians with medium and high incomes, through the higher stan-

ing how to optimize inpatient and outpatient settings, and are plan-

dards of their services. And their strategies have borne fruit, as the

ning how to integrate digital technologies into traditional hospital

data reported by Ziarul Financiar, based on the most recent figures

services to reduce costs, increase access, and improve patient care

issued by the National Institute of Statistics, show that the number

in the future. In the coming decade, many US and European hospital

of patients hospitalized in private hospitals grew by 20 percent in

executives plan to renovate or rebuild outdated infrastructure. Simi-

2016 on 2015. The increase was generated both by the development

larly, increasing healthcare demand in emerging economies should

of private healthcare networks and Romanians’ growing preference

drive considerable hospital planning and construction.

for private hospitals over those run by the state. According to the

Demographic and economic trends, coupled with advancing

same source, at present private hospitals represent about 35 percent

technologies, could have significant implications for how hospitals

of the total number of hospitals in Romania.

of the future will be staffed, sized, and designed. For example, more

With more private medical networks focusing their investments

healthcare services are taking place in outpatient settings and in the

on expansion, Fady Chreih, CEO of Regina Maria, told Business

home, although some types of patients – for example, complex cases

Review last year that there is plenty of room for the expansion of

and the very ill – are still likely to require inpatient hospital care.

private medical networks, as currently a quarter of Romanians do

In Deloitte’s view, the future of work is likely to be powered by

not have sufficient access to basic healthcare services. “And this is

technological advancements and an augmented workforce that

not only a business strategy, but a social need. We are making efforts

combines people and machines to get things done in a way that’s not

to cover the gaps where the public system has delayed investments

only more productive, but also more rewarding. From a hospital or

in new medical units or staff,” he said.

health system perspective, it means addressing pain points including a dispirited workforce with growing staff shortages and high

WHAT’S NEXT FOR THE HEALTHCARE SYSTEM

levels of burnout, a reduced ability to attract and retain top skills, a

According to a study conducted by Deloitte, 2018 Global Health Care

reduction in the quality of care, and a loss of position as a patient’s

Outlook - The Evolution of Smart Health Care, change is coming

provider of choice.

www.business-review.eu Business Review | March 2018

COVER STORY 27

A direct pathway to your healthcare specialist Cristian Barbu, owner of Docbook, tells Business Review about the added value that its application brings to Romanian patients who want to spend less time getting an appointment with a doctor. By Anda Sebesi WHAT NOVELTY DOES THE DOCBOOK APP BRING TO THE LOCAL MARKET?

private medical clinics that are our partners and

Docbook intends to ease patient-doctor relations

name, city, specialty, date and type of payment.

by giving people the opportunity to make an online

Docbook displays physicians depending on their

appointment, in real time and directly from a

location (from the closest to the farthest from the

smartphone or through the internet. It all started

user), indicating the specific hours and days avail-

from a simple idea: the average waiting time for

able for appointments along with their photos and

an appointment at a clinic, using the call center

reviews from other users.

allows users to search for medical professionals by

service, is 10 minutes minimum. If you have to call more clinics, you can end up spending several hours on the phone

HOW MUCH DID YOU INVEST IN THIS PROJECT?

without managing to make a proper appointment. Docbook meets

The investment has exceeded EUR 500,000 so far and could top

this simple need â&#x20AC;&#x201C; in one minute maximum you can make an ap-

EUR 1 million by the end of this year. We have 80 clinics as partners

pointment with any of our 80 partners, listed on the application.

so far, with a total of 1,800 doctors in 11 cities.

WHAT IS THE MECHANISM BEHIND YOUR APP?

WHAT ARE YOUR PLANS?

Docbook can be downloaded for free from the App Store and Google

We intend to reach 60 towns and cities by the end of this year,

Play or it can be accessed via the internet. The app enables users to

representing over 300 clinics and over 8,000 doctors in total. In ad-

check the availability of the doctors and their professional capa-

dition, we have started to negotiate with foreign partners through

bilities, getting confirmation of the appointment in less than one

which we could extend our services to countries like Hungary,

minute. It is 24/7 connected to the appointment systems of all the

Moldavia and Lithuania.

28 PARTNER CONTENT

www.business-review.eu Business Review | March 2018

Medicover Romania: a long term commitment on the local market Adrian Peake, general manager at Medicover Romania tells Business Review about the main achievements of the company on the local market and highlights the development of the Romanian medical system in the last two decades.

www.business-review.eu Business Review | March 20182017 November

What can you tell us about the investments you intend to make this year on the local private health care market? (reinvesting their profits in new developments)?

PARTNER CONTENT 29

that sense. Our aim is to offer integrated

in Romania the employment market is ultra

medical solutions to our patients around the

competitive. As a result employers will look

country and this is what we will continue to

to increase the benefits to their employees

do in 2018.

with the aim of retention and will choose the benefits that offer the best quality, availability

Our long term strategy is to make high qual-

and the most flexibility. At Medicover, since

continue to invest in and expand our network

In your opinion how did the Romanian medical system develop in the past 20 years?

but also invest in the core business to ensure

The workforce in the Romanian medical

tion, is also able to offer insurance products

that our customers and patients receive the

system is highly educated but there are insuf-

through our closed managed network which

highest quality of healthcare and that our

ficient budgets allocated to medical services.

ensures quality and accessibility, we are best

doctors have access to the best technology.

Therefore, the private sector has filled in

placed to be able to meet the needs of the

Our developments will continue to focus

those gaps and now, as the economy grows,

employers and their employees. For those

on areas where we believe the presence of

the investments in the healthcare sector can

patients that fund private healthcare them-

Medicover medical quality will enhance the

also grow. The last 20 years have practically

selves, increases in disposable income means

existing provision of medical services.

overlap with the development of the private

that individuals will choose those providers

healthcare market in Romania. Under non-

that offer them value for money with excel-

What are the main cities you target for extending your network and why?

optimal conditions offered by the public sys-

lent service levels. I am incredibly proud of

tem and in accordance with the desire of the

our patient feedback which tells me that not

We have a strong network of

romanian patients to receive quality medical

ity medical services accessible for as many Romanians as possible. Therefore, we will

25 clinics in Bucharest and the country and

we are the only private provider in Romania, who, in addition to our membership subscrip-

only are we delivering excellent healthcare every day,

services, the private healthcare

seven days a week, we

market has experienced a sustained growth from year

are also listening to

focus on the areas

to year. From start-ups

our patients about

where we believe

in laboratory , imagis-

how we can be even

our presence

tics or small clinics we

better tomorrow.

will continue to

will enhance the existing provision of medical services. This may include the

evolved to networks of clinics and private hospitals with integrated medical services and national coverage.

cities where we already pro-

All this development was supported by

vide excellent healthcare or in new cities.

investments in medical personnel and the

What can you tell us about the financial results your company posted in 2017?

next generation technology, that allowed us

I think technology will help us to be closer

to provide more complex and high-quality

to patients and as it happens abroad, in

medical services.

western Europe and USA, telemedicine and digital applications are making an entrance

On the 9th of February 2018 Medicover has officially announced the Groupâ&#x20AC;&#x2122;s results for 2017. This year has been a prosperous one, when the Group has been listed at the Nasdaq Stockholm, and the results show a global

Do you see any international trends in the field that Romania has already adopted / will adopt in the coming years?

More private medical networks are focusing their investments on expansion. Do you think that there is any room for further development on the local market?

and will ease the interaction of the doctor with the patients. One other macro trend is for sure prevention, and as we see more and more start-ups in this sector, the two trends overlap.

growth rate of 16,7% compared to previous

We will continue to see consolidation in the

year. In real numbers that means a turnover

market place. In Medicoverâ&#x20AC;&#x2122;s case we are able

of 580,2 mil euro. As Fredrik Ragmark, Medi-

to provide investment funds and 23 years

What are your plans for the future?

cover CEO put it, the market conditions are

of international healthcare knowledge to

We will continue to develop and invest in

stable and in favour of our investment plans

complement existing providerâ&#x20AC;&#x2122;s which makes

our core business and continue to deliver the

for growth, especially in Poland and Romania.

us an attractive partner.

highest levels of quality that the people of Ro-

If we are to look at our result in Romania, we have grown by 19,6% in 2017, compared

mania deserve. We will continue to invest in our doctors and nurses and provide access to

to last year, to a total of 73,8 mil euro. It was

How do you see the Romanian private healthcare market in the future?

a year when we continued our development

The healthcare system in Romania needs

technology. Where we see an acquisition that

plans in terms of growing our network. The

a healthy private sector to ensure as many

offers the same values as Medicover in terms

acquisition of Iowemed, the top of mind

Romanians as possible have access to the best

of medical quality and valuing employees, we

name in Constanta, was a strategic step in

healthcare. With more and more investment

will look to invest.

continued training and development and new

www.business-review.eu Business Review | March 2018

30 - PARTNER CONTENT -

The journey to the law firm of the future When Dentons was created in 2014 - through the merger of Salans, SNR Denton and Fraser Milner Casgrain – it set out with the lofty vision to create “the law firm of the future”. As the firm approaches its fifth birthday, we sat down with Richard Singer, Europe Chief Managing Officer, and Anda Todor, Romania Managing Partner, to discuss recent trends in the legal market, Dentons’ journey so far, and what’s next for the world’s largest law firm. help. There are lots of technologies that can make lawyers’ and their clients’ lives easier. To give just a few examples, there are tools to improve collaboration, project-manage deals, monitor regulation, review and update contracts, find the right skills for a particular legal project, or provide transparency on legal fees. Anda: Law is about people and trust, and

WHAT DO YOU SEE AS THE KEY TRENDS AFFECTING THE LEGAL SECTOR?

meet their needs. They want us to work smarter

also about good judgment, so the human

and more flexibly, and to modernize our busi-

factor will always be essential. Robots or AI

Richard Singer: On a high level, the factors

ness model to deliver services more efficiently.

will never replace lawyers, but they will re-

driving the transformation of the legal

Unfortunately, most clients don’t believe their

place some of the manual work that lawyers

sector are similar to those affecting other in-

lawyers are willing to make that change.

do. We see this as a good thing, as it will give us more time to focus on relationships

dustries. Business is more and more global and interdependent. Competition is fierce

SO WHAT IS DENTONS DOING TO CHANGE?

- not only from other law firms, but also

Richard: Firstly, we are working to improve

from alternative service providers. Clients

day-to-day processes across our entire opera-

expect us to deliver more for less, and to use

tions – from the way we develop talent, to the

technology to do it. And of course, there

way we collaborate, to the way we deliver client

WHAT ARE YOU MOST PROUD OF IN DENTONS’ FIRST FIVE YEARS, AND WHAT’S NEXT?

is an ongoing war for talent, and the new

service. To give just one example, about a year

Anda: I’m proud of the work we’ve done on

generation of lawyers has different expecta-

and a half ago, we opened a shared service cen-

some of the biggest deals in Romania, and of

tions from their career development.

ter in Warsaw to provide high quality business

our contribution to the development of the

Anda Todor: Here in Romania, we have

support services to 25 countries, in a much more

local economy – not only since becoming

definitely witnessed the “more for less”

effective and efficient way.

Dentons, but in the last 20 years since we

phenomenon. Especially in the aftermath of

We have also set out to transform the busi-

and higher value-added work.

opened the Bucharest office.

the financial crisis, the legal services market

ness of law through our Nextlaw businesses,

Richard: Since becoming Dentons, we have

is extremely competitive and our clients are

such as Nextlaw Labs, a collaborative innovation

become the fastest growing law firm in con-

looking for greater value from their lawyers.

and legal tech venture, Nextlaw Referral Net-

tinental Europe. We have opened eight new

work, the world’s largest and most innovative

offices, grown revenue by more than 55%,

referral network, Nextlaw In-House Solutions,

brought in amazing talent, and increased

a global consultancy for general counsel, and

our quality rankings by more than 60%.

YOU MENTIONED CHANGING CLIENT EXPECTATIONS, WHAT ARE CLIENTS DEMANDING TODAY?

others.

Anda: In the past, lawyers were asked to

Going forward, we will maintain our market leading presence in CEE, while continuing to grow and invest in Western

business partners to our clients, and advise

HOW WILL TECHNOLOGY AND AI AFFECT THE PRACTICE OF LAW? WILL ROBOTS REPLACE LAWYERS IN THE FUTURE?

not only on the law, but on how to achieve

Richard: The legal tech revolution is already

land and Portugal to be able to provide our

their strategy and manage risk.

here! You just need to figure out what you want

clients quality on the ground legal advice in

Richard: There is also a growing expectation

to achieve and how it could be done better, and

all of the key markets in Europe.

from our clients to change and innovate to

there is most likely a tool out there that can

give an opinion on an area of law, but that’s not enough anymore. We are expected to be

Europe. You can expect continued growth in areas like the Nordic region, Austria, Switzer-

www.business-review.eu March 20182017 Business Review | November

M&A 31

M&A market prepares for consolidation With the local M&A market posting a 15 percent increase last year compared with 2016, the future looks bright for the Romanian economy in 2018. While consolidation will be the key word for many sectors, the local M&A market will continue to generate few transactions exceeding EUR 50 million this year. By Anda Sebesi and financial investors to look closely at the local market and consider opportunities as they arise. As for the sectors expected to be livelier in terms of transactions this year, Laura Toncescu, managing partner, TMO Attorneys at Law in association with KPMG Legal, says that the M&A market will be more active in the FMCG sector but there will continue to be a consolidation in healthcare, agriculture and real estate. “In the banking sector, we will witness the completion of the transactions started last year. Considering the past deals and also the major changes in the fiscal legislation, we also expect to see NPLs entering another cycle, with fewer deals conRomania continues to be an attractive market for private equity funds

cluded throughout the year,” adds Toncescu. As for the pharma and medical services

But Florin Vasilica, partner and head of

that consolidation is expected to continue

EUR 3.8 billion in 2017, according to

transaction advisory services at EY Roma-

this year based on the fact that the market

public sources and disclosed transac-

nia, warns that the corrections seen in the

has fewer large players with the appetite for

tions, analysis carried out by Deloitte Roma-

external economic environment combined

acquisitions. “Plus, the lack of legal stability

nia has revealed. Overall, by combining all

with a lack of fiscal predictability on the local

for this sector in particular and the lack of

the transactions with undisclosed values, the

market counterbalance the rise of consump-

financial and fiscal stability for the entire local

total market reaches between EUR 4 and 4.6

tion and incomes and the favorable geo-

economy make it difficult for small and very

billion, 15 percent up on 2016, according to

strategic situation that Romania now enjoys.

small players effectively to survive,” she says.

Deloitte estimates. “M&A activity continued

“These factors are evaluated by Romanian

In the same vein, the consolidation of the real

to grow in 2017, but more remarkable was that

entrepreneurs who will look for solutions to

estate sector on segments like logistics, offic-

the number of transactions reaching between

make their exit from their mature businesses,

es and retail will continue, too. “We could see

EUR 100 and 500 million reached 15, setting

while regional and global strategic investors

new entries both in real estate and pharma

a record for the past ten years,” says Ioana

will continue to extend and consolidate their

and medical services this year,” adds Rojan-

Filipescu, Deloitte Romania M&A partner.

market share.”

schi. As for their value, the majority of trans-

he Romanian M&A market reached

Pundits say the local M&A market made its

sector, Rojanschi of D&B David and Baias says

Anda Todor, managing partner at Dentons,

actions in Romania are quite small, with an

debut in 2018 scoring rather a growth in terms

highlights that there are investors looking

average value of EUR 12-15 million. “A limited

of transactions and their value. Romania con-

for potential acquisition targets. “There are

number of transactions, about 15-20, exceed

tinues to be an attractive market for private

more and more Romanian entrepreneurs who

EUR 50 million every year and we expect this

equity funds and investors who are highly

have built their business up to a certain level,

to happen in 2018, too. This is because there

interested in the Central and Eastern Europe

reached their maximum potential and are

are not so many investment targets which can

market. “There are sectors where there is a

looking to move to the next level by attracting

support large values. But the average value

need for both consolidation and a breath of

strategic or financial investors,” says Todor.

of a transaction could rise in Romania too, as

fresh investments to bring added value to

She adds that the country’s favourable mac-

local capital consolidates and entrepreneurial

the existing projects,” says Anda Rojanschi,

roeconomic environment and general rise in

businesses become larger and generate higher

partner at D&B David and Baias.

consumption will persuade more strategic

profitability,” adds Rojanschi.

32 INTERVIEW

www.business-review.eu Business Review | March 2018

Investors (re)discover Romanian opportunities Florian Nitu, managing partner at Popovici Nitu Stoica & Asociatii, tells Business Review about the current state of the local M&A market and highlights its main achievements in 2017. By Anda Sebesi

How did the Romanian M&A market evolve in 2017? Against an international background marked by geo-political unrest – Brexit, Ukraine’s political and constitutional instability, Hungarian-Polish illiberal tendencies and the refugee crisis more generally – the Romanian M&A market flourished in 2017. The level of foreign direct investment, at least in terms of committed capital, increased significantly and the prospects for 2018 are very encouraging. With the largest GDP growth rate across the European Union last year, and a safe forecast of at least 4 percent GDP growth in 2018, Romania is one of the most appealing investment prospects.

What were the main features of the local M&A market in 2017? 2017 showed clearly that the Romanian market stands out among CEE markets with stronger growth opportunities, while a country risk traditionally perceived as high is now looking more and more palatable. In addition, in spite of the general impression of uncertainty given by an often-stumbling public sector, on 1 January 2018 additional tax cuts came into effect, making Romania one of the lowest tax jurisdictions in the EU. The low tax regime favours industrial investment and start-up initiatives equally. In addition, there are clear signs that the country’s efforts to reform the public sector and advance the rule of law will yield palpable results, at least in terms of investors’ confidence and their long-term commitment to the Romanian market. Therefore, I would say that investors are beginning to (re)discover the immense opportunities offered by Romania, whether it be in relation to strategic projects, regional consolidations or fresh starts.

What sectors attracted most of the M&A transactions in Romania last year? Significant transactions, in number and in value, were carried out in 2017 and many

www.business-review.eu Business Review | March 20182017 November

INTERVIEW 33

are ongoing with a very encouraging project

the completion of a half-a-decade consolida-

economy, for example, which appeared more

pipeline for 2018, in virtually all sectors, from

tion and restructuring process, involving

convincing to investors than the illiberal

industrial to energy, oil and gas, real estate to

banking and non-banking financial institu-

tendencies of the Polish and Hungarian politi-

agribusiness, in the financial sectors, banking

tions, corporate positions as well as transac-

cal elites. These markets showed growth in

and capital markets, in IT and telecommuni-

tions with portfolios of non-performing bank-

M&A activity, posting a double-digit hike in

cations, healthcare and pharma and service

ing assets. In terms of both value and volume,

terms of investment volumes, but also in the

sectors more generally.

the recent year’s trading of non-performing

number of transactions. According to market

loan portfolios marked decisively the comple-

reports (EMIS M&A Report CEE 2017/2018),

nesses as they have for years been a source of

tion of the work-out efforts of the Romanian

there were five deals each exceeding EUR 1

national pride, and not without justification.

commercial banking sector following the

billion, while jurisdictions such as Poland saw

There have been numerous transformations

financial turmoil of the last decade.

EUR 4 billion in transaction volume and more

I would start, though, with the IT busi-

in the industry in recent years and we may say that we now have a strong and mature market that has reached a high degree of sophis-

At the other end, in the real estate field, investments and new development projects

than 100 notable individual deals. But in general, the evolution in the regions has indeed

generated transactions totalling well above

been outstanding and, while

EUR 1 billion for the entire market,

tication. In 2017, we

including key deals in the of-

saw start-ups mush-

fice and retail sectors, but

the US or Russian capital continued to pour into these economies,

rooming, but also

also in the residential

the really important

big IT corporations

segment. Not to men-

new investor in CEE

and institutional

tion the industrial area,

investors betting on established Romanian IT businesses. I would then look at

is China. It is not

where numerous new de-

only the CEFC China

velopment and acquisition

Energy-Rosneft trans-

projects, with a clear consolida-

action (which remains

tion outlook, took place, while also

a stellar one of course),

what I call the second national

bringing sovereign funds (i.e. Singapore, Abu

economic flagship industry, meaning retail,

Dhabi etc.) onto the stage.

food and agribusiness. These make up a bil-

but the number of deals and the overall sums – billions of Euros – invested by

Capital markets also showed certain activ-

Chinese-funded companies, which demand

lion Euro market annually, only in terms of

ity, an improvement on the modest average

investment and mergers and acquisitions.

of the past, with a number of successful IPOs,

2017 was no exception, showing an ever

but also secondary offerings, structured and

greater appetite from investment funds to

leveraged finance instruments. Corporate

What do you expect from the local M&A market in 2018?

bet on the organic growth potential of the

bonds will follow suit in the years to come.

The Romanian M&A market is expected to

Romanian market. Thirdly, real estate – the construction sec-

consideration, present and future.

flourish in 2018 with a long-prepared and expected large transaction portfolio. Indeed,

tor, which posted tremendous growth and a

How did the CEE M&A market develop in 2017?

number of landmark projects, new develop-

The Hungarian, Polish and Czech markets

processes and exit scenarios are being con-

ments and acquisitions – made the headlines

continued to attract new capital, also sup-

sidered. In Romania, a number of billion-euro

in 2017.

ported by the robust growth of the Polish

projects are ripe for the picking.

in many sectors completed consolidation

Notable moves took place in all oil, gas and energy sub-sectors as well. But to be accurate, one must conclude that significant transactions were successfully implemented across all key industries and service sectors, equally involving institutional investors, strategic players and local entrepreneurs.

What types of deals took place in 2017 on the Romanian market? We saw all sorts of transactions, investments, divestments, work-outs, ventures and start-ups, as well as consolidations. It really depends on the economic sector, but indeed, the deal making typology is diverse. For example, in the financial sector we are nearing

ABOUT Florian Nitu, Managing Partner, Popovici Nițu Stoica & Asociații As Head of the Firm’s M&A, Real Estate and International Arbitration Practices, Florian Niţu is largely recognized as one of the most experienced commercial lawyers in the market and has been ranked in the past two decades as a leader in his areas of practice by the most reputed market annual surveys, including by Chambers and Partners and Legal500. Florian has advised large strategic and institutional investors, local entrepreneurs and financial institutions in projects, transactions and claims for cumulated values of billions of Euro. He is also very experienced in international arbitration, with a special focus on concessions, real estate-construction, energy and corporate disputes, having represented clients in front of ICC, VIAC, LCIA, ICCR - The Court of International Commercial Arbitration in Romania.

www.business-review.eu Business Review | March 2018

34 STOCK EXCHANGE

Grape expectations: Purcari surpasses crisis to make BVB history Faced with the effects of the rapidly shifting geo-political situation in the region, which triggered a deep rethinking of its business strategy, Moldovan winemaker Purcari has made a major turnaround and is now looking to grow internationally. After a successful IPO on the Bucharest Stock Exchange, in February the leader of the premium segment of the Romanian wine market became the first Moldovan company to list on the BVB. By Georgeta Gheorghe mania and Poland, was as much a calculated strategy as a necessity, Tofan argues. “We were entering 2014 with a stretched balance sheet, with an EBITDA below USD 1 million and a net debt hovering around USD 18 million. In addition, unfolding events in Ukraine, then Crimea, triggered a series of devaluations across CIS markets, putting our sales in the region under pressure.” In 2014, Tofan says, the group focused on fixing its balance sheet, improving its working capital and watching costs closely while preparing the ground for a sales push. “On the latter front, the primary goal was to restructure a bloated portfolio, terminating low-margin private label contracts and relaunching all four core brands with fresh positioning, targeting a younger, more progressive consumer, Purcari is one of the largest wine producers in the region

while supporting the brands with the signature marketing approach of the Purcari team. The sense of urgency and purpose that united

he damage inflicted on its business by

Capital, which came on board in 2010 and

the team ensured the excellent execution of

the two embargoes imposed by Russia

invested USD 18 million to hold 64 percent of

the strategy. Nothing unites a company as

in 2006 and 2013 on imports of wine

shares, after the first embargo hit business,

well as a good crisis,” Tofan comments. And the figures back that up. Despite the

from Moldova left Purcari Wineries with an

the group’s thorough knowledge of a tradi-

USD 15 million loss and deprived of a market

tional market translated into a business strat-

regional crises, over 2014-2016, Purcari qua-

accounting for at least 30 percent of its sales.

egy focused on reopening the closed door.

drupled its EBITDA, which rose by another

“The original investment thesis behind

29 percent in the first nine months of 2017.

Before the first embargo, Russia, a market that had developed a nearly symbiotic rela-

this investment was centered on regaining the

“The lessons of that time, including stringent

tionship with Moldova, was the latter’s main

group’s position on the Russian market, which

costs discipline, a guerilla-type marketing ap-

outlet, receiving up to 60 percent of wine

was traditionally the largest one for Purcari

proach, and an aggressive bonus structure for

exports. Faced with a crisis, Purcari Wineries

Wineries,” says Tofan. “Hence, initially it was

the sales force, are still serving Purcari today,”

redesigned its business strategy to focus on

all about orchestrating the comeback to Rus-

says the partner.

the Romanian and other CEE markets.

sia, especially as the embargo had been lifted at the time. However, that strategy was put to

UNCORKING A NEW MARKET

a hard test in 2013, when a new embargo was

TOASTING LIFE AS THE FIRST MOLDOVAN FIRM ON THE BVB

From the beginning, shifting focus was not

imposed, putting the group in a turnaround

Purcari Wineries owns 1,060 hectares divided

a straightforward move. According to Vasile

situation.”

between the vineyards of Ceptura and Dealu

Tofan, partner at investment fund Horizon

The refocus on CEE, most importantly Ro-

Mare in Romania, and the Purcari, Etulia and

www.business-review.eu Business Review | March 2018 May 2016

STOCK COVER EXCHANGE STORY 35 14

continue playing an active role, also as board members. Purcari company culture is a combative one, setting high targets and holding people accountable for them. We don’t necessarily believe in comfortable, rubber-stamping types of boards, so the management can expect to be challenged, constantly pushed outside their comfort zone. This is very much in line with Mr. Bostan’s style,” he adds.

WHAT’S ON THE TABLE: FRESH FOCUS ON POLAND AND CHINA Next, Purcari will look to replicate its successful Romanian model on CEE’s largest market, Poland, while also focusing on China as its next strategic market. As far as the group’s growth strategy is concerned, it will continue the expansion of premium brands, a strategic segment expected to grow further Victor Bostan, Purcari

Vasile Tofan, Horizon Capital

due to favorable market conditions. “Also, we want to develop new business segments. We have started with brandy and sparkling wine,

Onesti vineyards in Moldova. Its portfolio

time, has proven that quality products and a

and the results are already coming in. Our

includes four main brands: Purcari (premium

coherent strategy represent the foundation

sparkling wines have won two silvers and one

and super premium), Bostavan (table wine),

for the growth of a business, regardless of the

gold medal at Effervescent du Monde – one

Crama Ceptura (mainstream and premium)

external impediments it encounters along

of the most important international sparkling

and Bardar (premium brandy).

the way. We have high ambitions, and in

wine competitions,” says the Purcari CEO.

A major wine producer in both Romania

order to achieve them we believe that greater

“Next we are also exploring acquisition op-

and Moldova, both with domestic market

visibility, which comes with being a public

portunities. Historically, the group came to-

status, Purcari listed on the Bucharest Stock

company, will help us further our goals in the

gether via a series of five acquisitions, during

Exchange (BVB) under the WINE symbol,

region.”

the 2000s, and we have a good track record

following a successful IPO of 49 percent of

According to Bostan, both the BVB and the

of identifying and integrating value-accretive

its shares. The offering was well received, in

Romanian capital market are enjoying good

targets, so we plan to build on this experi-

spite of turbulence on the global market, with

momentum following the series of successful

ence. Last, but not least, our sales strategy is

retail investors oversubscribing it more than

IPOs carried out last year. Tofan agrees. “We

to increase the share of direct-to-retail sales,

four fold. The final offer price was RON 19 per

believe that the Romanian capital market

leveraging on very good relationships with

share, valuing the offering at over RON 186

is on a good trajectory to reach emerging

key international retailers. We have had a pos-

million (USD 50 million).

market status. Investors’ interest is high after

itive experience in Romania with this type of

Romania was one of the most active markets

distribution model and we want to replicate

ers in the region, and we have ambitious

in terms of IPOs, with four such offerings val-

it in strategic markets for us, like Poland, and

plans for the future. In this context, listing

ued at EUR 256 million. The BVB is following

other core CEE markets, such as the Czech

on the BVB represented a natural step in our

on the path of the Warsaw Stock Exchange,

Republic and Slovakia.”

evolution,” says Purcari CEO and founder

which has been a spectacular success Europe-

Vasile Bostan, adding he is happy to contrib-

wide.”

“Purcari is one of the largest wine produc-

Purcari exports to Asia from both its Romanian and Moldovan wineries. According

Following the listing, Horizon Capital

to Bostan, the group sees China as a strategic

Romania, a term alluding to the close ties

holds 23 percent in the firm, becoming the

market, which has shown very high rates of

between Moldova and what is now its main

second largest shareholder after the group’s

growth. “We are directing major resources

trading partner.

founder, and is in no rush to liquidate that

into expanding our footprint there. We are

ute to the creation of ‘bridges of capital,’ with

stake. Instead, the future role of Horizon

creating a dedicated sales team that is based

gist by training with over 35 years of experi-

Capital, which has around USD 700 million

in China and we have just announced the

ence in the wine business, returned to the

under management, across four funds, is

introduction of new products dedicated to

position of majority shareholder, with a 25

going to be an active one, Tofan tells BR. “The

the medium and premium segments of the

percent stake. “We are a company that, over

management is in the driving seat but we will

Chinese market.”

Following the listing, Bostan, an oenolo-

www.business-review.eu Business Review | March 2018

36 EDUCATION

Local execs seeking entrepreneurship exposure through MBA education Becoming an entrepreneur and taking a shot at a game-changing business are crossing the minds of Romanian executives in middle and top management positions, who are pursuing MBA studies. By Ovidiu Posirca

More students are financing MBA studies on their own

firms that face significant risks in their

Bucharest-based MBA started their course in

Romanian managers with more than a decade

first stages of development, is also

2016. Close to two thirds of the 29 interna-

of experience in top positions had hands-on

playing a bigger role in the modules of the

tional managers came from Romania, but the

experience of creating their own firms during

Executive MBA Bucharest, organized by WU

cohort also included executives from Austria,

the program and spent time on the ground

Executive Academy. With their graduation

Bulgaria, Kazakhstan and Pakistan. One third

to see how early stage firms develop. Having

ceremony having taken place in mid-February

of the participants came from IT and tele-

made visits to Vienna and Minneapolis in

in Vienna, BR talked to some of the execu-

communications, alongside managers from

the US, aside from their courses in Bucha-

tives about their plans to start businesses.

financial services, energy and manufacturing.

rest, they were exposed to a global business

Some of the graduates have already founded

Some 35 percent of the students in the aver-

perspective and the manner in which innova-

companies and are exploring additional

age class are female. The average age of those

tive firms have the potential to disrupt well

investments.

enrolled in the program stands at 35.

established companies.

he start-up culture, marked by nimble

The largest class of students of the

FROM MBA TO ENTREPRENEUR

www.business-review.eu Business Review | March 2018 May 2016

“There was a really good mix between corporate clients, corporate vision, thinking

COVER EDUCATION STORY 37 14

other businesses. WU’s MBA programs have over 3,500

stands at EUR 35,000, but WU says it can award scholarships that can cover up to 35

big and entrepreneurial,” Alexandru Bold,

graduates, of whom 260 are alumni from the

percent of the total cost under certain condi-

founder at Bold Development, told BR.

Bucharest-based operations.

tions.

He is one of the graduates of the newest

The dean of the WU Executive Academy,

Then, there are challenges related to work-

cohort of WU’s MBA program in Bucharest.

Professor Barbara Stottinger, says that 13

life balance. Students have to take classes

In order to complete the program, he had

percent of the MBA alumni become entrepre-

in international residences and spend their

to prepare an entrepreneurship initiative.

neurs.

weekends or evenings studying. This can

Together with his team, he came up with a

“We will put a little bit more emphasis on

impact their family life, and some students

co-living concept for London. He worked on

innovation and entrepreneurship,” added

said it was crucial to have a supportive part-

the project with Liliana Libocor and Mihnea

Professor Phillip Nell, academic director

ner that understands what an MBA program

Craciun.

of the executive MBA Bucharest (professor

“For instance, we went to an accelerator, a great hub that is incubating and uniting start-ups with big businesses, because then

for Global Strategy, Competence Center for Emerging Markets & CEE at WU). Some of the Romanian executives say

the big corporations are able to diversify their

they are keeping the entrepreneurship idea

portfolio, and the start-ups get knowledge

in their back of their minds and might remain

and training. We had a chance, and it was like

on the boards of large companies for a while.

an X-Ray, these 14 months, of business. We

Another statistic provided by the dean is that

were exposed to all the ways, all the mistakes

alumni see their income increase by around

and all the good decisions that could be made

33 percent on average in their first year since

in order to develop a new business or further

graduation. She added that 80 percent of the

change the business that you have, so there

alumni change jobs within three years, with

is some entrepreneurialism and innovation

half moving to new companies.

coming into the business to get it ready for

“I’m thinking of becoming an entre-

the future,” said Bold. After building a busi-

preneur in four or five years,” says Minel

ness case on this idea, he believes that it has

Ciurea, general manager of Philips Orastie,

significant potential to become reality.

a graduate of the Executive MBA Bucharest.

“Indeed, it would probably be easier to do

He is joined by Teodor Adrian Apostoleanu,

it in Romania and we are looking for potential

vice-president of global payroll operations at

entails. The development of some online

investors that could finance real estate devel-

Oracle, whose personal opinion is that many

modules might help relieve this pressure.

opers,” said Bold.

graduates of the program want to start their

Elsewhere, Claudiu Hila, general manager of Pallex Romania, who also graduated from

own business. Meanwhile, Hortensia Nastase, vice-

the MBA program in February, says he is still

president of creative services at Lowe Groupe

debating with his colleagues the implemen-

Romania, says, “I’m

tation of the idea they presented in Vienna.

not thinking of any

Hila and two colleagues presented the market

other kind of entre-

introduction of a 100 percent organic ready-

preneurship than

to-drink tea product on the Austrian market

what I’m doing right

called TiiJoy. He worked on the project with

now.”

The academy has developed this business line to complement the hours students spend face to face with professors. Representatives of WU have suggested

Jorg Six and Cristina Nedelcu. “You either have the entrepreneurship bug in your genes or you don’t, but there is a seri-

WHO’S FOOTING THE MBA BILL?

ous dose of exposure to entrepreneurship and

MBA programs

the quality of the program helped us to get

continue to come

to this point (…) to be close to launching this

with hefty costs and

new business and having a lot of capabilities,

students are able to rely less on the support of

that MBA students still prefer to spend their

as well as knowing from where to get these

companies.

time in classes and work on projects with

capabilities to make a business,” Hila told BR. Meanwhile, Alina Andrei, founder of

“We mostly see students financing an MBA

executives. In fact, WU officials and students

program by themselves. Companies have cut

say that the network of contacts created

‎Cabot Transfer Pricing, says that after found-

back on their support,” said the dean. The

during the 14-15 months of courses can be an

ing her company, she would like to invest in

tuition fee for the Executive MBA Bucharest

asset for executives in their future roles.

38 TOURISM

Ecotourism sun rising in Romania Tourism has changed over the years, and nowadays many holidaymakers are looking for authentic experiences and a closer connection to nature and tradition. Razvan Pascu, tourism marketing consultant at Travel Communication Romania and Association Travel Focus, talked to BR about local ecotourism and the potential of various parts of the country.

www.business-review.eu Business Review | March 2018

ABOUT RAZVAN PASCU he is consultant in tourism marketing, vice-president of Travel Focus Association and managing partner at Travel Communication Romania. He graduated from the Marketing faculty of Bucharest University of Economic Studies (ASE) in 2008 and also holds a master degree in Communication at National University of Political and Administrative Studies (SNSPA).

By Georgiana Bendre What does ecotourism mean? What does it mean for the countryâ&#x20AC;&#x2122;s natural and cultural assets? Ecotourism is that part of tourism that aims at the commitment and closeness of the tourist to the specifics of the travel destination, local customs and traditions. This is done through interactive strategies and projects and, at the same time, by encouraging responsible behaviour towards the environment, both from tourists, as well as those who provide touristic services. Ecotourism is a promise to the cultural and natural assets of any country, through which everyone can contribute to the promotion and conservation of the respective nation, as well as to the maximization of benefits for local communities.

In what activities can tourists take part, and what experiences can those that travel in ecotourist areas enjoy? Tourists can become familiar with the cultural and social values of these areas, with the communities, getting involved in different activities that focus on connection with nature, and on traditional Romanian customs. For example, Astra Museum in Sibiu has developed a strategy based on ecotourism principles, organizing regular fairs, exhibitions, shows for visitors (most of them foreigners), aiming to develop local communities.

Will ecotourism help future generations? The conservation and protection of these areas are the main principles of ecotourism activity. Therefore it focuses both on economic growth via sustainable tourism

www.business-review.eu Business Review | November March 20182017

TOURISM 39

and visibility on the global market, as well as on the conservation of the country’s natural and cultural resources. Romania has a wide range of assets – natural areas, and traditions and customs that foreign tourists particularly like – which can bring profit and long-term wealth from this precious patrimony, if there is a strategic and responsible mentality, and

Natural park Saciova Hills

well-planned marketing.

without any support from the authorities. For

promotion of tourism in general, not only

In Romania there are already two ecotouristic destinations approved by the European Commission: Zarnesti-Piatra Craiului and Mara-Cosau-Creasta Cocosului. Have others with development potential already been proposed?

example, Green Village, a hotel concept built

for ecotourism. But it’s not the number one

on sustainable principles, which is integrated

priority. Romania is among the countries with

perfectly in the middle of a Danube Delta res-

the weakest infrastructural development,

ervation, attracts annually thousands of Ro-

which gradually makes tourists lose their

manian tourists and their counterparts from

interest, so we have to redouble our efforts to

Austria, Germany, and the USA. By promoting

compensate for these drawbacks.

Romania has extraordinary touristic poten-

entertainment possibilities in nature, gastro-

tial, but doesn’t benefit from appropriate

nomic workshops, boat trips, photo tours and

positioning on the tourism market, or the

cultural tours, entrepreneurs have developed

Do you make info-trips, related to ecotourism, at Travel Communication Romania?

efficient management of destinations so that

a real tourism culture in the middle of nature

Yes, we try as much as possible to promote

they can get the international visibility they

in a few areas of Romania.

these destinations in our activity at Travel

deserve. We have several areas that fulfill all the conditions for the development of all

Communications and Association Travel Focus. We work with some Romanian areas

sylvania’s hills, the perimeter of Sibiu, the

Where does the demand for ecotourism come from? From Romanians or more from foreigners?

county of Dorna, the Aurochs’ province, and

Foreigners have a special interest in this form

helped with the promotion of the Danube

the Danube Delta.

of tourism, as they are fascinated by green

Delta, of Szekely land, Alba Iulia city, Covasna

areas with ancient woods, mountain tracks,

county, and others.

forms of sustainable tourism, such as Tran-

Are there investments in marketing/advertising in Romania for the promotion of ecotourism?

natural areas, and

There are no investments at all. Ecotourism

handicrafts and

involves long-term strategic thinking, prior

occupations of the

documentation and the integral exploitation

old generations.

of the respective area, to identify its specifics.

Unfortunately,

None of the authorities at central level has

most foreign tour-

yet adopted long-term thinking. They want to

ists discover them

check things fast, not knowing how long they

randomly, because

will stay state secretaries. So it’s not possible

we don’t have a

to get any results, and if it hadn’t been for the

concrete touristic

private sector and NGOs, the situation would

profile, efficient

have been disastrous.

marketing, or

the communities that pass on the

a portfolio that

Are there ecotourism investors that have built something from scratch?

comprises all these

There are several successful examples in

tives.

touristic objec-

Romania, such as in the Danube Delta, a promising area for sustainable tourism prac-

taken the investment risks in a country where

Is tourism development dependent on the development of an infrastructure?

the fiscal laws are changing monthly; they

Infrastructure is

do promotion, they get things moving, but

compulsory for the

tices, and in Maramures and Transylvania. The private sector had done everything it could. Both Romanians and foreigners have

and with some entrepreneurs and authorities who want to promote places, so we have

www.business-review.eu Business Review | March 2018

40 ENERGY

Gas games: Bucharest and Budapest vie for European energy influence Within the next five years, players say Romania will become a major producer and exporter of natural gas, due to its offshore reserves in the Black Sea exclusive economic zone. But major producer doesn’t necessarily mean major player on the natural gas market without a strategy to shape the great European energy game. Meanwhile, Hungary is waiting in the wings. By Sorin Melenciuc to have a say in the decision making. “We should not care much about what Hungary wants. We should care about what we want. I mean to define clearly our strategy for natural gas and the road map related to it. From my point of view, our concern should be why we have not already spent the EUR 47 million of EU funds allocated for the second phase of the gas interconnector between Romania and Moldova in 2014. The money should have been spent on Romanian territory with big benefits for the Romanian economy,” Razvan Nicolescu, a former minister of energy and currently advisor at Deloitte Consulting, told Two Hungarian companies won the auction for the whole capacity reservation of the gas pipeline connecting Romania and Hungary

Business Review. Some commentators say that Hungary’s strategy is to buy up all the natural gas exported by Romania through

o real strategy has emerged so far

Austria. While many experts viewed the move

BRUA (or BRU), fulfill its own needs and then

from the Romanian government

as an attempt to secure Budapest an edge over

re-export the surplus to the clients of its

concerning Bucharest’s plans for the

Vienna, the second move raised questions

choice. This would be against the interests of

natural gas exceeding its current national con-

about why Hungary, a country with almost

Romania, which would be dropped from the

sumption. But nature abhors a vacuum, and

no energy resources, would be positioning

clients available via the Baumgarten hub, and

commentators say this lack of strategy has

itself to become the dominant player on the

of Austria, which would lose any major role

fueled the ambitions of other governments

regional energy market. On February 9, after

in Romanian gas supplies. But experts say

from the region. At the moment, Austria is

his foreign minister paid a visit to Bucharest,

Romania lacks any real counter-strategy. “We

seen as the key player among Central Euro-

the Hungarian prime minister, Viktor Orban,

care too much about the priorities of other

pean countries through its natural gas hub

announced that Hungary would soon sign

countries and you do not really understand

in Baumgarten, and the new BRUA pipeline

a deal allowing the import of 4 billion cubic

what our priorities should be. That is why we

project (Bulgaria-Romania-Hungary-Austria)

meters of natural gas annually from Romania

have less chance of becoming a gas hub than

was viewed from Vienna as the perfect tool

over the next 15 years.

them,” Nicolescu said. If Romania looks like

to strengthen its position on the European natural gas market. But recently, a new player with big ambi-

Romania denied the claim, but some kind of deal was in fact announced a few days later: two Hungarian companies won the auction

an easy target for the Hungarian government, Austria may try to block Budapest’s strategy. Vienna has several trump cards over Buda-

tions has entered the fray: Hungary has made

for the whole capacity reservation of the gas

pest, one of which is that one major company

two key moves in order to secure a seat at

pipeline connecting Romania and Hungary.

involved in the development of Romania’s

the energy game table. First, in July 2017,

Experts interpreted the Hungarian move

offshore natural gas fields is OMV, an Austrian

Budapest announced that the BRUA pipeline,

as an attempt to show that Budapest was no

firm. In contrast to the Romanian govern-

projected to connect Bulgaria, Romania and

longer accepting the role of a mere transit

ment, OMV – and its partner, the US giant

Hungary with the Baumgarten gas hub, would

country for Romanian gas being exported

Exxon Mobil – is not keen to be in the position

end in Hungary and not have a connection to

to Western European markets, but wanted

of a captive supplier to a sole customer.

www.business-review.eu May 2016 Business Review | March 2018

COVER STORY IT 41 14

Who’s afraid of the big bad... AI? Although it sounds rather futuristic and like something out of a sci-fi book, Artificial Intelligence (AI) is anything but fiction, having been part of our lives for some time already. And its role is only going to increase. Currently still in its infancy, scientists are exploring AI’s full potential while striving to come up with the advanced computing technologies required for its further development. BR found out more. By Dan Serbanescu Data processing of huge amounts of business information. An AI can correlate otherwise seemingly unrelated items and can find trends and opportunities, so its business use has potential whose surface has barely been scratched so far. And Amazon already seems to be pursuing this, with its transactional AI, which has been in operation for quite some time, making huge amounts of money online. Amazon’s algorithms are continuously being refined, and the company has become smart at predicting customers’ interests based on their online behavior, say commentators. Netflix is another example of predictive technology based on customers’ habits. It analyzes billions of records to suggest films that a So far, AI is just a bunch of algorithms, not a sentient entity

viewer might like based on his or her previous choices. AIs are also successfully used in fields such as data encryption and even image

THE CURRENT POWER OF AI

of machine learning, requiring intensive train-

compression, the latter being developed by a

We may not be aware of it, but the voice

ing for the given task. One of the most spec-

Facebook startup company called WaveOne.

assistants in our smartphones and comput-

tacular AIs is Google’s AlphaGo, which has

ers, from Siri to Google Now and Cortana,

defeated the best Go-players in the world. Go

SHOULD WE WORRY?

are just real-life embodiments of AI systems.

is a Japanese board game, said to be far more

Although some scientists, such as physicist

Furthermore, AIs power smart-home speakers

complex than chess, and the development of

Stephen Hawking, have repeatedly warned

such as Amazon’s Alexa and automatic image

software that could play Go on a professional

against the expansion of AIs to a level where

recognition modules in software. Even Google

level was considered impossible for many

they could take over the world, for now there

Search cannot work without machine learn-

years. But after human-trained AlphaGo, a

have been mostly positive and practical

ing, which is a sub-domain of AI. A technolo-

further developed AI, AlphaGo Zero, managed

developments in this field. But AIs can and

gy called RankBrain has already been helping

to teach itself the game, based only on the

probably will be weaponized, which is a fear

with the sorting of search results for about

rules. Three days later, it achieved profes-

shared by visionary businesspeople such as

two years. Around 15 percent of daily queries

sional level and three weeks later it was as

Elon Musk, and already confirmed by world

are new to Google, so RankBrain algorithms

good as its predecessor AlphaGo, which had

leaders such as Russian president Vladimir

search for samples in the unknown search

to be trained exhaustively with millions of

Putin. The USA already has a strategy in place

queries and link them with semantically

professional matches. As it turns out, AIs are

for a so-called algorithmic war, while the

similar terms. Finally, the search machine

rather limited by human intervention. After

rest of the world seems to be engaging in a

itself learns all that and can deliver suitable

six weeks, AlphaGo Zero became unbeatable.

rather futile attempt to ban weaponized AIs.

answers to never before made queries. Today’s AIs are based on so-called neural

Like many other major inventions in human

PRACTICAL USES

history, AI can also do harm, but a world in

networks, which are a form of collective com-

Given their analytical prowess, AIs can and

which Ovelord and Protector Siri is about to

puting trying to mimic the way the human

already do have practical applications such

crush the last pockets of human resistance

brain works. They rely heavily on the concept

as identifying hidden trends following Big

hopefully remains the stuff of B movies.

www.business-review.eu Business Review | March 2018

42 BR AWARDS

Business Review Awards – praising the stars of the Romanian economy Over 140 nominees and 60 finalists will be competing in 11 categories at this year’s Business Review Awards, BR magazine’s flagship event that recognizes the outstanding achievements of the business community. By Anda Sebesi entrepreneurs, 13 local smart initiatives, and 12 green projects, with five making it onto the shortlist in each case. The biggest number of candidates (31) was recorded in the Community Development Initiative, where both multinationals and Romanian companies on one hand and NGOs on the other presented the best programs through which they helped their communities last year. Some 19 application forms came from both local and multinational companies with 12 from NGOs. More companies with Romanian capital made it into the competition than last year, being put forward for consideration either by the magazine and the jury, or through selfnomination. The judging process included two stages. Initially, Business Review magazine came up with a list of potential nominees which received feedback from the jury to find more people and companies that were media shy. In the second meeting, jurors selected the

nominees that would make it onto the shortlist and the winners were chosen following

hese are the main figures from the

categories closely reflect the latest develop-

an individual voting process at the end of the

13th year of our competition, which

ments on the local and international markets.

discussions.

celebrates the most dynamic entre-

This year, three new categories – Emerging

This year we have also chosen to dedicate

preneurs, executives and companies that

Entrepreneur of the Year, Local Smart Initia-

a special article to 22 inspirational stories se-

have continued to innovate and bring new

tive and Green Project – have been included

lected by the Business Review editorial team

products and services onto the market.

to recognize the massive growth of the local

from all the candidates for the 13th BR Awards

And the power of the independent jury is

entrepreneurial sector, and the efforts that

in all categories – winners and nominees

one of the Business Review Awards’ key as-

both private players (companies and NGOs)

alike. We hereby present to you the tales of

sets. Every year, some of the previous years’

and public authorities have made to bring

22 initiatives, people and companies that de-

winners have the chance to join the team of

their contribution to the development of dif-

serve public recognition for their efforts and

jurors that carefully assesses and determines

ferent sectors of the local economy.

contribution to the Romanian economy and

the winners in each category.

Transforming Romanian cities into smart

society beyond any award or diploma. They

ones seems to be a hot point on the agenda

keep Romania moving forward because they

WHAT’S DIFFERENT THIS YEAR?

of local stakeholders, be it local or multi-

believe that change comes from inside each of

Every year Business Review works with

national companies, civil society or public

us. And for that they deserve their stories to

the jury to make sure that the criteria and

institutions. Jurors assessed seven emerging

be heard.

www.business-review.eu May 2016 Business Review | March 2018

COVER BR AWARDS STORY 43 14

BEST COMMUNITY DEVELOPMENT INITIATIVE THE BEST COMMUNITY DEVELOPMENT INITIATIVE CATEGORY RECOGNIZES THE EFFORTS MADE BY BOTH ROMANIAN AND FOREIGN COMPANIES DOING BUSINESS LOCALLY AND NGOS THAT HAVE DEMONSTRATED A COMMITMENT TO IMPLEMENTING MEDIUM- AND LONG-TERM PROGRAMS OR PROJECTS THAT AIM TO SUPPORT THE COMMUNITY THEY OPERATE IN. IT LOOKS TO REWARD COMPANIES’ AND ORGANIZATIONS’ INVOLVEMENT IN COMMUNITY DEVELOPMENT PROGRAMS THAT PROVE TO HAVE A HIGH IMPACT IN SOCIETY. SHORTLISTED NOMINEES: COMPANIES: MEGA IMAGE (BLOOD DONATION), OMV PETROM (VOCATIONAL SUMMER CAMP), EMAG FOUNDATION (WE CARE), BCR (MONEY SCHOOL ON WHEELS), VODAFONE ROMANIA FOUNDATION (CONNECTING FOR GOOD). NGOS: DARUIESTE VIATA (THE FIRST PEDIATRIC ONCOLOGY HOSPITAL IN ROMANIA), MAGICAMP (MAGICHOME), TEACH FOR ROMANIA (LEADERSHIP SUMMER ACADEMY), HABITAT FOR HUMANITY ROMANIA (BIG BUILD 2017), LINDENFELD ASSOCIATION (GROWING GREAT).

By Anda Sebesi

From left to right: Oana Gheorghiu, Carmen Uscatu

DARUIESTE VIATA ASSOCIATION

VODAFONE ROMANIA FOUNDATION

For Carmen Uscatu and Oana Gheorghiu, the two founders of the

“We decided to develop community intervention projects

Daruieste Viata Association, the construction of the first hospital

because of the large number of problems that surround us and

specialized in pediatric oncology and radiotherapy in Romania is

the perception that we, either as companies or individuals, can

a challenging but yet feasible project. They have raised over EUR

help find solutions,” says Angela Galeta, director of the Voda-

8 million in three successive fundraising campaigns.

fone Romania Foundation. Ongoing involvement comes with

“In Romania one out of two children diagnosed with cancer

results, adds Galeta, whether from long-term strategic programs

dies, while in Europe between 80 and 90 percent live. In the

or smaller, high-impact ones. “The construction of the inten-

past 50 years, the Romanian state had not been able to build a

sive care unit (ITU) for newborns at the Marie Curie Hospital in

hospital specialized in pediatric oncology. In Romania, cancer

Bucharest is an example of a project that we are proud of. It is a

brings humiliation and means that you cannot say at the end of

modern unit equipped with state-of-the art technology where

the battle that, as a parent, you did everything possible for your

doctors can work at European standards, giving children in need

child to live,” says Uscatu. The project started last year and the

a new chance at life,” says Galeta. This year, the organization will

construction of an 8,000-sqm building will start this spring in

duplicate the project at the County Hospital in Constanta, by

Bucharest.

modernizing its newborns’ ITU. In its 20 years of existence, the

The hospital will have radiotherapy, ambulatory and oncol-

Vodafone Romania Foundation has invested EUR 28 million in

ogy units, sterile rooms, a relaxation space, an operating theater,

more than 1,000 projects developed by over 700 NGOs in strate-

an intensive care unit, plus neurosurgery and oncology surgery

gic fields such as healthcare, education and social services. The

units. Asked what was the most difficult point in completing

projects developed by Vodafone Romania Foundation reached

their project, Uscatu says that as she and her partner completed

more than 2.7 million beneficiaries combined – children, seniors

different stages of their project, they realized that the difficult

and physically, socially or economically disadvantaged individu-

time was about to come: “I think that the functioning of this

als. “I am motivated because I see that we’re doing a great job

hospital in a dysfunctional medical system is by far the biggest

and I have the courage to continue when I see that more people,

challenge.”

whom we need, want to volunteer for our projects.”

www.business-review.eu Business Review | March 2018

44 BR AWARDS

COMMITMENT TO INNOVATION IN TECHNOLOGY THIS AWARD RECOGNIZES NOVEL, INNOVATION AND RESEARCH-DRIVEN STRATEGIES, DEVELOPED IN AND FOR ROMANIA. THE CATEGORY COVERS THE MANY DEVELOPMENTS RELATED TO THE INTRODUCTION OF NEW PRODUCTS, SERVICES OR CAMPAIGNS, AND THE ROLL-OUT OF R&D-ORIENTED INVESTMENTS. JUDGING CRITERIA INCLUDE INNOVATION AND RESEARCH-DRIVEN ORIENTATION OF THE STRATEGY IMPLEMENTED, THE INVESTMENT MADE AND PERFORMANCE AGAINST OTHER MARKETS WHERE THE COMPANY IS PRESENT. SHORTLISTED NOMINEES: UIPATH FOR UIPATH PLATFORM, VODAFONE AND OMV PETROM FOR NB-IOT, SAP ROMANIA FOR THE BUCHAREST DATA SCIENCE AND MACHINE LEARNING TEAM, DB GLOBAL TECHNOLOGY, ABB FOR THE NATIONAL CENTER FOR DIRECT AND ASSISTED TRAINING FOR ROBOTICS

By Georgeta Gheorghe

BITDEFENDER

UIPATH

With 1,300 employees in nine countries, which serve clients on

UiPath is one of the leaders of the robotic process automation

over 150 markets, and a network of over 7,000 resale partners,

(RPA) market due to its advanced software platform that enables

Bitdefender is a global software provider. In 2017 the company

enterprises to deploy digital workforces across their operational

was valued at over USD 600 million and announced the Made in

business processes. Having seen a 600 percent growth in direct

Romania security product for smart devices Bitdefender BOX.

sales last year, the company expects a turnover of USD 35 mil-

Bitdefender was valued at USD 600 million when investment fund Vitruvian Partners became the company’s second biggest shareholder in December, after purchasing a minority interest of

lion. UiPath has offices in New York, London, Bucharest, Paris, Tokyo, Singapore, and Bengaluru and has 500 employees. According to Boris Krumrey, UiPath’s chief robotics officer,

30 percent from investment fund Axxess Capital. “It was a full

“2017 was a speedway year in enterprise RPA as customers

year for us,” Bitdefender representatives said. “It is true that the

realized how RPA is leading the way in applied AI technologies

investment fund’s exit and the arrival of a new investor in the

for process automation. With UiPath working closely with its

company mark a transition between two stages, but we were

customers with RPA development teams, educating the market

already in the middle of such a plan, because we make three-

with free academy training and a free complete community

year plans. The fund’s entry is a reference point and makes our

edition of our software, employees in companies were able to

plans for listing a possibility sooner than we were expecting. So

create and evolve their own proof of concepts.”

although 2017 was a full year, I would say that it will be less full than 2018 or 2019; it was a sort of warm-up year.” Last autumn, Bitdefender announced that its the first hard-

He added, “Thanks to our solid foundation architecture redesign in 2016, we now have an unbeatable, highly scalable and secure RPA platform architecture that is easier to use and faster

ware product, the security product for smart devices Bitde-

to integrate other relevant enterprise technologies than leading

fender BOX would be produced in Romania, in Satu Mare, at the

competitors in this space. As demand for cognitive and digital

factory of German group Zollner. Also in 2017, the Bitdefender

process automation continuously increases, we strive towards a

brand was estimated at EUR 112 million by Brand Finance, be-

seamless integration between the digital workforce and the hu-

coming the most valuable Romanian technology brand.

man resources of our customers’ organizations.”

www.business-review.eu May 2016 Business Review | March 2018

COVER BR AWARDS STORY 45 14

BEST EMPLOYER INITIATIVE THE AWARD RECOGNIZES THE HR EFFORTS OF BOTH LOCAL AND MULTINATIONAL COMPANIES IN AN INCREASINGLY COMPETITIVE LOCAL LABOR MARKET. ASPECTS OF INTEREST FOR THE JURY INCLUDE RECRUITMENT POLICIES, TRAINING EFFORTS, RETENTION PROGRAMS INCLUDED IN THE PROJECT, BENCHMARKED AGAINST THE WIDER CONTEXT OF THE COMPANY’S INVESTMENT, PRESENCE IN ROMANIA AND THE INNOVATIVE CHARACTER OF THE HR INITIATIVE OR PROGRAM. SHORTLISTED NOMINEES: AUTONOM, DB GLOBAL TECHNOLOGY, MEGA IMAGE, ZITEC, TREMEND SOFTWARE CONSULTING

By Anda Sebesi

MEGA IMAGE

AUTONOM RENT A CAR

Last year, Mega Image implemented a recruitment campaign

For Autonom Rent a Car, the largest mobility network in Roma-

that addressed every segment of the local labor market, includ-

nia, with 44 agencies in 33 cities and a fleet of over 4,000 new

ing older people. “We targeted retired people who either have

cars, creating a democratic organization, focused on learning,

a small pension which cannot support their monthly expenses,

is strategic. “One of our company goals is to build an organiza-

seniors having difficulty in finding a job due to their age, and

tion centered on learning in which each person is motivated to

those who have an active lifestyle, despite their age, and want to

evolve and develop. We want our colleagues to improve them-

socialize in a friendly environment provided by the teams in our

selves constantly. One of their responsibilities is to read. We put

stores,” say representatives of Mega Image. The campaign took

at their disposal a large and ever-expanding library (physical

place between July and December 2017 and offered participants

and digital) comprised of business and self-development books.

a choice between different work schedules – part-time and

Our reading budget is unlimited,” says Maria Tataru, marketing

full-time / weekends only or exclusively Monday-Friday. For its

manager at Autonom.

recruitment campaign, Mega Image partnered with the local

In addition, the company constantly organizes training to

social service provider for seniors which works closely with

help its teams to develop and improve their skills. “We encour-

day centers and seniors’ clubs. These represented a channel for

age our colleagues to get involved in their local communities

promoting employment opportunities and facilitating the rein-

through the Autonom Foundation, supporting any kind of edu-

tegration of older workers in the labor market. “As a result of the

cational initiatives,” they add. All the employees benefit from

campaign, the overall number of senior employees, aged above

autonomy in their activity and are highly encouraged to take

50, increased by 17.8 percent, and currently they account for 13

decisions and to think of improvements and new initiatives for

percent of the total number of employees. The last research car-

any aspects of the company. As a result of this strategy, a study

ried out in fall 2017, revealed that one of our strengths is that we

conducted by AON Hewitt revealed that the engagement score

are a company offering equal employment chances for candi-

in the last three years was significantly above 80 percent. Plus,

dates (84 percent),” they say. According to the company’s data,

“employees who have worked for Autonom for over one year

Mega Image had 10,153 employees in 2017.

receive a share of the company’s profits,” adds Tataru.

www.business-review.eu Business Review | March 2018

46 BR AWARDS

ENTREPRENEUR OF THE YEAR THIS CATEGORY RECOGNIZES THE ENTREPRENEURIAL EFFORTS AND ACHIEVEMENTS OF A LOCAL BUSINESSPERSON WHO HAS MANAGED TO DEVELOP A SUCCESSFUL REGIONAL OR NATIONAL BUSINESS, LOOKING EITHER AT THE INNOVATIVE NATURE OF THE BUSINESS STARTED OR AT THE GROWTH PARAMETERS AND CREATED VALUE. SHORTLISTED NOMINEES: DRAGOS ANASTASIU (EUROLINES GROUP), GEO MARGESCU (FORTE PARTNERS), MIHAI ROTARU (CLEVER TAXI), IULIAN STANCIU (EMAG), RAZVAN VOICA (INFORMAL SCHOOL OF IT).

By Ovidiu Posirca

CRISTINA BATLAN, CO-FOUNDER OF MUSETTE

DRAGOS ANASTASIU, PRESIDENT OF EUROLINES GROUP

For Romanian shoe and accessories maker Musette, 2017 meant

Starting his first business in 1995, after having graduated from

more efficient work processes and better productivity and

the University of Medicine in Germany, Dragos Anastasiu has

performance. Cristina Batlan, co-founder of the company, says

built one of the largest international transport companies in

that this year, the focus will be on new project ideas designed to

Romania from scratch. But aside from managing the group,

maintain or increase growth in the near future. She also paints

Anastasiu is also focused on helping the overall business envi-

the concept of success as something that isn’t limited to the

ronment. He is the executive director of the Romanian-German

wellbeing of her business. “For me, success is the ability to do

Chamber of Commerce and Industry and has been part of

what I love every day. I also measure success by my ability to

campaigns to support entrepreneurship among young people as

help others. The more people I can help, the more successful I

well as to convince Romanians living abroad to return home and

consider myself to be,” the co-founder told BR.

start businesses. The head of Eurolines has an “obsession” with

Batlan, who started Musette when she was 18 years old, also

keeping his employees happy and is looking to constantly keep

talks about the legacy of relevant contribution to the society in

his management teams engaged and independent. Anastasiu’s

which a business operates. “Whether that means having time

vision has paid off as his companies are leading the local tourism

to devote to educational organizations, to charity or volunteer-

market. The group’s sales in the tourism sector have soared by

ing – if I’ve got the time to help others, it means my businesses

a yearly average of 50 percent, while the overall market posted

are being well run and are profitable. During life we take, we

only single-digit growth of up to 7 percent. His group is currently

receive a lot from others; but what really counts is what we put

the only one in Romania that provides the full array of tourism

back, those things that you make that people after you will use,”

services and Anastasiu’s priority is to further develop the servic-

she says. In an age in which people are turning more to Industry

es culture in Romania. Eurolines Group comprises 22 companies

4.0, marked by automation in all sections of the manufacturing

whose turnover climbed 25 percent to EUR 150 million last year.

process, Batlan says that for Musette, “innovation is ongoing.”

Some 650 people are currently employed by the group, whose

“The ideas that make us different from computers and robots,”

brands include Eurolines, TUI TravelCenter and Nova Travel

says the entrepreneur of the company’s innovation drive.

Danubius, just to name a few.

www.business-review.eu May 2016 Business Review | March 2018

COVER BR AWARDS STORY 47 14

EMERGING ENTREPRENEUR OF THE YEAR THIS AWARD ACKNOWLEDGES THE ENTREPRENEURIAL EFFORTS AND ACHIEVEMENTS OF A LOCAL EMERGING BUSINESSPERSON WHO HAS MANAGED TO DEVELOP A SUCCESSFUL REGIONAL OR NATIONAL BUSINESS, JUDGED AGAINST CRITERIA SUCH AS EXPANSION ON THE LOCAL AND OTHER FOREIGN MARKETS, SIGNIFICANT ORGANIC GROWTH, HIGH POTENTIAL FOR DEVELOPMENT OF THEIR BUSINESS WHETHER ON A LOCAL OR INTERNATIONAL MARKET, ETHICS AND VALUES PROMOTED. SHORTLISTED NOMINEES: ALEXANDRU VOICULESCU (PUREQUAD), ANDREI BOTESCU (PEGAS), LAVINIA VLADU (CV30), NICOLETA CHIRICA (IUTTA) AND RADU SAVOPOL (5 TO GO)

By Georgeta Gheorghe

RADU SAVOPOL

ANDREI BOTESCU

A serial entrepreneur, Radu Savopol has nearly 20 years of

Andrei Botescu is the man behind the revival of the iconic

experience in HoReCa and, with the creation of coffee chain 5 to

Pegas bicycle, many a Romanian’s favorite childhood buddy.

Go, has managed to put a mark on many Romanians’ mornings.

Relaunched in 2012, under his supervision, in 2017 the com-

Through the expansion of the chain he has managed to success-

pany managed to get a complete portfolio for each and every

fully transfer the concept to several regions of Romania. Last

category of bike, from urban to e-bikes. Moreover, it launched

year, the coffee chain increased its turnover by 134 percent year-

Romania’s first electric bikes, as well as several brands for other

on-year. He successfully juggles several businesses and last year

outdoor products such as vintage skates, electric transporta-

both closed a long-running venue in Old Nick Pub and took on a

tion – electric scooter and electric longboard, and kendamas.

fresh challenge by opening a new space aligned with the latest

Last year Pegas launched three new mono-stores in Bucharest,

market trends.

Timisoara and Ramnicu Valcea.

Among last year’s biggest achievements for the 5 to Go chain,

Since the middle of 2017 the firm has been developing the

Savopol counts the fact that it exceeded its forecasted turnover.

implementation of a dockless smart bike sharing service. “We

“Moreover, we opened cafes in new cities and strengthened

offer the complete service, from bikes specially designed for

the brand in several areas around the country. In 2017 we also

bike sharing, meaning anti-theft nuts, anti-corrosive parts, no-

launched 5 to Go plus, a double range of drinks and premium for

puncture tires and basket, to a special app and special lockers

the food range. We also focused on developing the 5 to Go team.”

for the program. This project is innovative because the bikes are

“For me, it was a good year, due to the launch of Dialog Social

free floating, geo located and secured by external lock,” Botescu

Bar, but also one when I gave up on a staple location in Bucharest, Old Nick Pub Bucuresti,” he acknowledges. “I focused on

explains. It is due for launch in March. Furthermore, Pegas is the only Romanian bike company to

the team, on strengthening the franchises with potential in

have launched two versions of an electric bike last year, and it

the management of own locations, and I created private label

will continue to develop more bike models this year. “In terms

products, which meant I had to put in a lot of work and a lot of

of business, in 2017 we opened up three more Pegas mono-

kilometers.”

stores.

www.business-review.eu Business Review | March 2018

48 BR AWARDS

DEAL OF THE YEAR THIS CATEGORY ACKNOWLEDGES THE MOST IMPORTANT BUSINESS TRANSACTIONS OF THE PREVIOUS YEAR. IT RECOGNIZES THE DEAL THAT HAD THE BIGGEST IMPACT AND SIGNIFICANCE IN 2017, IN FINANCIAL TERMS AND IN THE DEVELOPMENT OF THE LOCAL ECONOMY, OR OF A PARTICULAR INDUSTRY. SHORTLISTED NOMINEES: AXXESS CAPITAL PARTNERS FOR THE BITDEFENDER TRANSACTION; CORESI BUSINESS PARK OFFICE FOR BEING ACQUIRED BY IMMOCHAN ROMANIA; SPHERA FRANCHISE GROUP FOR ITS IPO; CLEVER TECH FOR ITS SALE TO MYTAXI; TERAPLAST FOR BUYING INTERLEMIND, DEPACO AND POLITUB.

By Ovidiu Posirca

MARK HILTON, CEO OF SPHERA FRANCHISE GROUP

MIHAI ROTARU, CO-FOUNDER & CEO OF CLEVER TAXI

With Mark Hilton at the helm, Sphera Franchise Group listed a

Seven years since its foundation, Clever Taxi was taken over

25 percent stake on the Bucharest Stock Exchange, in the first

last year by Mytaxi, the e-hailing player controlled by German

Initial Public Offering of a food service operator in Romania. The

carmaker Daimler, in a deal that improved Romania’s tech image

CEO also oversaw the integration of restaurant chains KFC, Pizza

and its entrepreneurship scene. Mihai Rotaru, co-founder and

Hut and Pizza Hut Delivery in Sphera Franchise Group.

CEO of Clever Taxi, describes 2017 as “the most challenging yet

“For Sphera, this moment marks a new development of the

prolific year”. He says that the firm’s “boldest and most game-

company and we have big ambitions, our plan being to exceed

changing move” was joining the Mytaxi and Daimler family.

240 restaurants by the end of 2022,” said Hilton in late Novem-

“We joined forces with a European leader who shares our vision

ber, when the shares started trading. The value of the IPO stood

of the transportation market and that came with many changes.

at EUR 62 million and 95 percent of the offering went to insti-

In our case, these changes represented a huge step forward, a

tutional investors, while the rest was allocated to retail buyers.

more dynamic approach to the market, and we almost doubled

Currently SFG shares are valued at RON 38 each, representing a

in size; the Clever Taxi team has doubled its size in the last six

31 percent increase on the listing price. “This milestone in our

months. We are still close to the startup ecosystem,” says Rotaru.

evolution was doubled by a very favorable context. We had the

As developer of the taxi hail app Clever Taxi, the company

opportunity to bring the capital market a new business sector

is navigating the myriad of challenges posed by the unstable

and some of the most popular international food brands in Ro-

regulatory framework and the ongoing transition of Romania

mania,” said representatives of the group. Looking forward, Hil-

to the digital economy. “In spite of the well-known obstacles

ton says the group’s strategy will focus on investments. Sphera

that appeared in the way, we have remained faithful to our main

will invest up to EUR 12 million yearly in order to support the

goal since the very beginning: offering the safest, most reliable

increase of its network of units. In 2017, the group also brought

and legal form of urban mobility solutions. We are constantly

the Taco Bell brand to Romania. The first restaurant started

improving our platform, investing all of our resources to make it

operations in Bucharest in a move that marked the introduction

as user-friendly as possible and to increase the quality of experi-

of the chain in Central and Eastern Europe.

ence for each of our 700,000 users,” concluded Rotaru.

www.business-review.eu May 2016 Business Review | March 2018

COVER BR AWARDS STORY 49 14

BUSINESS LEADER OF THE YEAR THIS CATEGORY RECOGNIZES THE REMARKABLE ACHIEVEMENTS OF BUSINESSPEOPLE WHO GO ABOVE AND BEYOND THEIR DAILY ROLES AND RESPONSIBILITIES AS HEADS OF LOCAL AND INTERNATIONAL COMPANIES IN ROMANIA.

SHORTLISTED NOMINEES: DAN ISAI (SALAD BOX, NARCOFFEE AND DONUTERIA), IULIAN STANCIU (EMAG), OMER TETIK (BANCA TRANSILVANIA), STEVEN VAN GRONINGEN (RAIFFEISEN BANK), VASILEIOS STAVROU (MEGA IMAGE).

By Ovidiu Posirca

GEO MARGESCU, FOUNDER OF FORTE PARTNERS

OMER TETIK, CEO OF BANCA TRANSILVANIA

The founder of Forte Partners, Geo Margescu, has remained

With more than 20 years in the banking sector, the CEO of Banca

committed to developing projects that create standards in the

Transilvania (BT), Omer Tetik, was kept busy in 2017.

property market, but will also leave a legacy for Bucharest.

BT, which is the second biggest lender in Romania with

Up to now, the developer has done business in the Romanian

around EUR 12 billion in assets, took over Bancpost, in a strategic

capital, but investments in other cities might follow. This reflects

deal for the local banking sector, which has entered a consolida-

Margescu’s strategy of constantly working to master a market

tion phase. This will be a new challenge for Tetik, who has to

before moving ahead. His company built its brand in the office

make sure the integration of Bancpost’s operations goes smooth-

market, but after doing some exploratory investments in the

ly. He had already overseen the merger of BT with Volksbank in

luxury housing segment, he kicked off a massive residential

the previous year. “Streamlining efficiency and cost control will

project in north Bucharest worth close to EUR 40 million. In this

be the main targets for Banca Transilvania in the next period,”

project, the green area will cover 50 percent of the residential

said the CEO in a statement published on the Bucharest Stock

complex. “Last year marked new milestones for our team, in

Exchange in February.

terms of portfolio expansion and team cohesion. We continued

Tetik has been at the helm of BT for more than five years now

our commitment to creating new destinations in Bucharest for

and last year he oversaw 7,000 employees and over 500 bank

quality office and residential spaces,” Margescu told BR. Last

branches. During his mandate, the bank has recorded progress

year the company delivered the first phase of The Bridge office

in all business lines. BT’s profit climbed from RON 320 million

building with record leasing contracts adding up to 30,000 sqm.

in 2012 to RON 1.2 billion in 2017. The lender says it remains the

Once the second phase is completed, the overall value of the

bank for entrepreneurs and has more than 250,000 corporate

project will stand at EUR 145 million. Margescu’s interest in the

customers.

real estate sector is not limited to his company. He is one of the

Last year, BT launched a new company which provides con-

founding members of the Association of Real Estate Developers

sulting services and financing for entrepreneurs with start-ups

(AREI), created in 2017. The association aims to improve the built

or small businesses, who could not find a solution within the

environment and future development of the real estate market.

traditional banking system.

www.business-review.eu Business Review | March 2018

50 BR AWARDS

EXCELLENCE IN BUSINESS THIS CATEGORY RECOGNIZES THE OUTSTANDING ACHIEVEMENT OF A LOCAL BUSINESS OVER A LONGER PERIOD OF TIME, LOOKING AT ASPECTS SUCH AS INNOVATIVE CHARACTER, DEVELOPMENT ACHIEVEMENTS, MARKET SHARE AND OVERALL RELEVANCE TO THE LOCAL BUSINESS ENVIRONMENT.

SHORTLISTED NOMINEES: BANCA TRANSILVANIA, EMAG, KAUFLAND ROMANIA, PROFI ROM FOOD, UIPATH.

By Ovidiu Posirca

IULIAN STANCIU, CEO OF eMAG

DANIEL CIRSTEA, GENERAL DIRECTOR OF PROFI

In 2017, the largest e-commerce player in Romania focused

After opening 195 stores across Romania in 2017, retailer Profi

on the expansion of its marketplace and fresh investments in

says that the management of talent played a strategic role in

technology and logistics. eMAG, which is majority owned by

achieving this target. Daniel Cirstea, general director of Profi,

Naspers, says that it was all about its customers.

said that the retailer has the widest geographical coverage in

“We are eager to learn new things and we pay attention to

Romania and the largest number of stores due to its expansion

new trends, such as the use of mobile devices for shopping and

push. At the end of last year, the company had 695 outlets in

artificial intelligence. We are not afraid to try new tools in order

379 locations. “The managers of those new units come primarily

to offer our customers an extraordinary shopping experience,”

from the existing Profi stores, and people considering a fast track

Iulian Stanciu, CEO of eMAG, told BR.

in their career seize the opportunity. One can easily imagine the

Stanciu says that eMAG has implemented an accelerated growth program for its partners in the marketplace. “Currently more than 7,000 sellers have listed their products

kind of energy and enthusiasm this brings to the network, now a sheer talent magnet,” Cirstea told BR. The retail chain has reached close to 13,000 employees, making it one of the four

on our platform and this brings advantages to them, because

largest employers in this sector. Over 650,000 customers visit

they can sell their products and services to a wider audience,

the stores’ network daily. “The expansion also covered our logis-

but also to our clients, who can find everything they need on

tics capabilities as we wanted to provide shorter, better routes to

eMAG,” added Stanciu.

our stores and suppliers,” added the executive.

Last year, the company entered the delivery market by ac-

The retailer has been helped by the strong growth of private

quiring Sameday Courier. The transaction comes several months

consumption, which contributed to the overall 7 percent GDP

after eMAG invested EUR 1.7 million in Romanian Zitec, the

expansion in 2017. Profi has also continued to venture into

developer of online apps. The e-commerce player also kicked off

smaller towns and locations where the competition from other

the construction of a new warehouse for high-volume products,

retailers has remained relatively low. Profi has developed its

saying this will be the biggest storage facility of its kind in south-

network through three store formats. Around 80 percent of the

eastern Europe. The RON 300 million investment will support

products present on its shelves are made in Romania and its pri-

the company’s efforts to develop regionally.

vate labels account for roughly 20 percent of its 6,000 products.

www.business-review.eu May 2016 Business Review | March 2018

COVER BR AWARDS STORY 51 14

BEST START-UP THE AWARD RECOGNIZES THE MOST PROMISING STARTUP THAT HAS A HIGH POTENTIAL FOR DISRUPTION AND IS LIKELY TO HAVE A SIGNIFICANT IMPACT ON A CERTAIN INDUSTRY. IT TAKES INTO ACCOUNT THE INNOVATION FACTOR OF THE SERVICE OR PRODUCT THAT THE STARTUP IS PROVIDING, SCALABILITY, AND OVERALL GROWTH POTENTIAL. OTHER JUDGING CRITERIA INCLUDE PROVEN ABILITY TO ATTRACT FUNDING, BUSINESS ACHIEVEMENTS AND PREVIOUS RECOGNITION SUCH AS AWARDS RECEIVED. SHORTLISTED NOMINEES: CLEVER TECH (CLEVER TAXI), CYBERSWARM INC., NALU, TYPINGDNA AND KINDERPEDIA.

By Georgeta Gheorghe

CYBERSWARM INC.

TYPINGDNA

CyberSwarm is developing the first processor dedicated to

TypingDNA is the creator of a typing biometrics solution, a pro-

cybersecurity, which will empower every device to defend itself

prietary authentication API that recognizes people by the way

against cyber attacks. According to company representatives,

they type on their keyboards. Through its products TypingDNA

their goal is to create an efficient cybersecurity solution for the

authentication API (typing biometrics as a service), and upcom-

IoT with all its verticals. Currently the startup is testing an MVP

ing TypingDNA Authenticator secured with typing biometrics,

with early adopters and is negotiating pre-sales with a large

the startup specializes in identity fraud prevention. Winner of

corporation.

Best Newcomer for Romania at the Central European Startup

“When describing 2017, we cannot help but use such words

Awards, it was invited to give a presentation at the European

as terrific and productive,” startup representatives said. Having

Parliament as part of 2017’s EU Top 50 Startups. In 2017 the

put together a solid and growing team of business experts and

TypingDNA team focused on developing a mature product and

scientists, they are now focusing on helping their product take

bringing it to market, to achieve market validation. “We made

off. “What was just a sketch in January 2017 turned into reality

our first customers happy; we launched new solutions and com-

in December: we are developing the first processor optimized

pleted our team,” representatives said. “Until December 2016,

for cybersecurity and the best part is that we are doing it all in

around 1,000 biometric authentications had been performed. By

Romania. We have finally patented some pieces of the puzzle,

December 2017, we had had hundreds of thousands of authen-

which is our technology, and learned how we can build it in the

tications. Our customers are leaders in their industries and con-

best way. These days we are working on the final touches and on

firmed their trust in our solution over the last year.” Currently,

filing even more patents.”

the team is putting together a new solution driven by demand

Also this year, CyberSwarm secured a seed round of funding

in the financial sector. The new solution recognizes users based

from Tim Draper through Draper Associates. “It is a dream come

on how they type short repetitive text, such as usernames and

true to find the right type of investor who respects your work as

passwords or credit card details. Launched in September 2017,

a startup and gives you enough freedom. CyberSwarm has also

this functionality achieves unprecedented accuracy for typing

advanced in the negotiations for pre-sales and we are working

biometrics (comparable with facial recognition) and reveals ap-

on implementing our technology for early adopters.”

plications as a stand-alone second factor of authentication.

www.business-review.eu Business Review | March 2018

52 BR AWARDS

LOCAL SMART INITIATIVE THE AWARD RECOGNIZES THE IMPACT OF PROJECTS OR INITIATIVES THAT COMPANIES / NGOS / PUBLIC AUTHORITIES HAVE CARRIED OUT TO IMPROVE AND EASE THE LIVES OF CITIZENS FROM VARIOUS ROMANIAN CITIES, TRANSFORMING THEM INTO SMART ONES. IT ALSO AIMS TO RECOGNIZE THE EFFORTS OF COMPANIES THAT HAVE TRIED TO TRANSFORM ROMANIAN CITIES INTO SMART COMMUNITIES, USING TECHNOLOGY AND / OR INNOVATIVE TECHNOLOGIES. SHORTLISTED NOMINEES: ALBA IULIA MUNICIPALITY FOR ITS EFFORTS TO MAKE ALBA IULIA A SMART CITY, CLUJ-NAPOCA MUNICIPALITY FOR PARTICIPATORY BUDGETING CLUJ-NAPOCA, OMV PETROM FOR THE ELECTRIC HUB, VODAFONE ROMANIA FOUNDATION FOR TANDEM, A VISUALLY IMPAIRED PROJECT, IMMOCHAN ROMANIA FOR CORESI DISTRICT.

By Anda Sebesi

MATER

URBANIZEHUB

Mater, the biggest library of materials in this part of Europe,

Renewable energy, technology and smart cities are already shap-

which was launched last year, is an extended, constantly-

ing other European cities, while in Romania, with a few notable

renewed collection of material samples. It is the ideal space

exceptions, the discussion is still at a basic level. This is why Gra-

for architects, interior designers, industrial designers, fashion

tian Mihailescu founded UrbanizeHub, an urban development

and jewellery designers, illustrators, artists, constructors and

platform open to designers, environmental activists, renewable

advertising professionals. The project was initiated by Nod

energy and waste management specialists, technology, innova-

Makerspace and the co-founding team consists of Sabina Baciu

tion and transportation experts from everywhere – anyone who

as project manager, Florin Cobuz as head of development and

can help to bring about more people-friendly cities. “Why such

Tamina Lolev as head of research. Other team members include

an initiative in Romania? Because cities are becoming increas-

Sandy Balasoiu, master librarian, and a team of librarians that

ingly large and they support a country’s economy. Plus, there

will guide people in discovering the materials at Mater.

is already an urban culture among Romanians that we want to

“The need for a materials library was born inside the com-

encourage and promote. We are witness to a global decentraliza-

munity of architects and designers at Nod Makerspace. Since

tion where communities matter and cities will lead the current

creatives work with samples of all types of materials, the idea

global revolution generated by technology, innovation and

was raised to organize a wall with various materials so that

urban governance,” says Mihailescu, founder of UrbanizeHub.

everyone could consult them. Starting from this, the project de-

Such initiatives are becoming even more important as 2 billion

veloped into an extended space of 1,000 sqm dedicated to mate-

individuals will migrate to urban areas and over 70 percent of

rials,” outlined Baciu. The library has more than 3,000 material

the world’s population will live in cities by 2050. Plus, eight ma-

samples, with rock, ceramics, metals, textiles, composites, glass,

jor cities in Romania currently generate 53 percent of the GDP.

plastic, coatings, concrete, wood, sustainable and experimental

“There is a need for smart and sustainable cities, best practices

the main categories of materials. Some of the investment was

and cities that are open to their citizens because they represent

raised through crowdfunding. “We had over 200 supporters in

the future.” Mihailescu intends to transform his initiative into an

the crowdfunding campaign and we raised EUR 18,722, against a

equity fund with the aim of finding real solutions for sustainable

target of EUR 15,000,” she added.

and smart cities.

www.business-review.eu May 2016 Business Review | March 2018

COVER BR AWARDS STORY 53 14

GREEN PROJECT THIS CATEGORY AWARDS COMPANIES OR NONGOVERNMENTAL ORGANIZATIONS (NGOS) THAT MAKE A SIGNIFICANT CONTRIBUTION TO ENVIRONMENTAL PROTECTION, BY IMPLEMENTING PROJECTS WITH A HIGH POSITIVE IMPACT ON BOTH THE ENVIRONMENT AND SOCIETY AS A WHOLE. IT ALSO AIMS TO RECOGNIZE THEIR EFFORTS TO EDUCATE ROMANIANS IN THE SPIRIT OF RECYCLING, PROTECTING THE ENVIRONMENT AND ADOPTING RESPONSIBLE BEHAVIOR TOWARDS THE ENVIRONMENT. SHORTLISTED NOMINEES: BANCA TRANSILVANIA FOR TRANSYLVANIA FOREST, FUNDATIA CONSERVATION CARPATHIA, KAUFLAND ROMANIA FOR THE GRADINESCU PROJECT, RAIFFEISEN BANK ROMANIA FOR THE I’VELO URBAN PROJECT, VACARESTI NATURAL PARK ASSOCIATION FOR THE BIRDS OF THE CITY.

By Anda Sebesi

RAIFFEISEN BANK

KAUFLAND

When Raiffeisen Bank decided to support urban ecology

Seven out of 10 Romanians are practitioners of so-called “urban

projects as part of its CSR strategic direction eight years ago,

agriculture”, which means they grow fruit, vegetables or herbs

the lender aimed to encourage cycling as a real alternative to

at home, according to a study conducted for Kaufland Romania.

car transportation and to reduce the impact of pollution on the

Based on this, the company last year decided to launch Gradi-

urban environment. “But soon after we started to work with

nescu, a project consisting of a network of nine urban gardens

Green Revolution, our partner in developing the I’Velo proj-

of which three are located on the roofs of Kaufland stores, four

ect, we realized that it would be a long-term process, because

behind or in their parking areas and the remaining ones in two

citizens of Bucharest had got out of the habit of cycling and few

schools in Bucharest.

used bikes for transportation. This is why first we encouraged bike riding as a form of

“The project is a premiere on the Romanian market, promotes attention to nature and community spirit, and supports

recreation. This is the part of our project that we now call I’Velo

the development of urban agriculture through its own example.

Relax, an initiative being rolled out in eight cities and which had

Also, Gradinescu aims to make both children and adults aware

over 165,000 users last year alone.

of gardening and the ease with which they could benefit from

The second stage of the project, known today as I’Velo Urban, promotes cycling as alternative transportation,” says Corina Vasile, communication and public relations director

healthy food, even in urban areas,” says Katharina Scheidereiter, CSR manager at Kaufland Romania. The urban gardens are comprised of beds with vegetables,

at Raiffeisen Bank. I’Velo is an extensive program that has

fruit and flowers. “Members of the local community can adopt

developed organically over the past eight years with the aim of

them and take care of them with the support of specialized

changing the way Romanians that live in urban areas relate to

consultants and then enjoy their crop,” adds Scheidereiter. The

transportation.

total investment in the pilot project in Bucharest stands at EUR

“We want to offer the infrastructure needed for alternative,

300,000 and the company intends to extend it to other loca-

sustainable transportation, with a high impact on environmen-

tions. The nine urban gardens were developed by the retailer

tal protection and to encourage people to leave their cars at

in partnership with the Romanian Institute of Permaculture

home,” adds Vasile.

Research.

www.business-review.eu Business Review | March 2018

54 FILM

Let the Sunshine In (Un beau soleil interieur) DIRECTOR: Claire Denis STARRING: Juliette Binoche, Xavier Beauvois, Philippe Katerine, Josiane Balasko, Bruno Podalydes, Gerard Depardieu ON AT: Grand Cinema & More, Cinema City Cotroceni, Cinemateca Union, Europa, Peasant Museum Cinema

FILM REVIEW

By Debbie Stowe

fellow artist, a random mystery man from a nightclub and her ex-husband, while fending off the attentions of other undesirables in her daily life. With all that having sex and then talking about it, it’s surprising she finds the time to paint. The meandering storyline is challenging for those raised on Hollywood action – this

magine the Frenchest film possible. It

isn’t one for the popcorn-munching brigade.

would open with a sex scene. It would be

Instead it delivers strong performances and

about artists and intellectuals, alternately

characterization, a naturalistic look at the

making love, drinking wine and having high-

dating game for the middle-aged bourgeoisie

Isabelle shops, although we never see her

brow conversations. It would star an impossi-

and a (rare and nonjudgmental) focus on a

cooking), glamorous apartments and endless

bly sexy and stylish middle-aged woman. And

so-called promiscuous woman.

soulful jazz – we even get elegant, urbane

it would feature Gerard Depardieu. Step forward Let the Sunshine In, an

That generates pathos, as Isabelle’s lovers are mostly undeserving of her, but there is

sounds when a cabbie flicks on his radio at random.

episodic drama (in a loose sense of the word

also some sharp comedy. If we didn’t already

“drama”) that follows a Parisian divorcee

know that one of her beaus is a jerk, when he

so beautifully, chicly French that it would

(Juliette Binoche) through her love affairs (in

asks a waiter for “gluten-free olives”, we do

almost be worth dating someone who asks

a loose sense of the word “love”).

now.

for gluten-free olives just to be taken there.

Isabelle is a renowned artist, but her

And more seductive than all of her suitors

One of the bars the characters drink in is

Almost…

romantic life is less successful than her

is the Paris in which the story unfolds, a city

professional one. She’s variously involved

of theaters, charmingly old-school restau-

filmmaking, and surely a contender for the

The final flourish is a piece of bravura

with a ghastly banker, an alcoholic actor, a

rants, independent fishmongers (where

moment cinema reached Peak France.

The Death of Stalin FILM REVIEW

By Debbie Stowe

DIRECTOR: Armando Iannucci STARRING: Steve Buscemi, Simon Russell Beale, Michael Palin, Paddy Considine, Rupert Friend, Jason Isaacs, Andrea Riseborough, Jeffrey Tambor ON AT: Grand Cinema & More, Happy Cinema, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall

variety of accents, from New York, to London Cockney to comedy Yorkshire. The vocal mélange adds another bizarre note to the absurdities that marked Soviet communism, something with which local audiences will be familiar. Stalin’s high-ranking flunkies exhibit the

vious power grabs and plotting and lampoons

worst of human nature, as they go from syco-

the unquestioning loyalty that the system de-

phancy while the “Great Leader” is alive – we

manded, to dark, as we witness the arbitrary

ts title makes it sound more like a grim

see them after a rowdy dinner party having

brutality meted out by the Red Army.

documentary, but Armando Iannucci’s

their wives make a note of which of their

satire is actually a bitingly funny look at

jokes the dictator did and didn’t laugh at – to

actors – from Hollywood veterans such as

the expiration of the Soviet dictator and the

Machiavellian self-interest, quickly forming

Steve Buscemi as Khrushchev to lower-key

power struggle that followed.

factions and jockeying for advantage in the

Brits like the stage actor Simon Russell Beale

quest to succeed their former comrade as

as Beria and comedian Michael Palin as

General Secretary.

Molotov – make the most of them. The effect

Of course, it’s fictionalized – a point emphasized by the fact that despite being Russian, the main characters (the members of

Iannucci handles deftly the changes in

Stalin’s Central Committee) speak English in a

tone – from humorous, as he skewers the de-

Each of the main roles is meaty, and the

is a memorable comic portrait of both a vile regime and the depths of greed and ambition.