BR 02/2017

WHERE ROMANIA TALKS BUSINESS March, 2017 / Volume 21, Issue 2

www.business-review.eu

INDUSTRIAL SPACE DELIVERIES TO HIT POST-CRISIS HIGH IN 2017

28 x

INSURERS SEEK BETTER TIMES

30xx

GOVERNMENT PASSES MIXED BAG OF CHANGES FOR BUSINESS

44xx

IT ALL ADS UP: ADVERTISING SHOULDERS ITS ECONOMIC SHARE

48xx

17 BUSINESS LEADERS TO WATCH IN 2017

www.business-review.eu Business Review | March 2017

EDITORIAL 5 COVER STORY

• Editorial •

Anda Sebesi • Editor-in-Chief • 8 17 business leaders to watch in 2017

11 The deal architect 13 The telecom market developer

FINANCE 30 Insurers seek better

Lauding the leaders

times

44

Government passes mixed bag of changes for business

Today’s concept of business is no longer what it used to be. And this is a reality both for Romania and other more developed countries around the world. With competition firing up across the global market, it becomes clear that sustaining growth will require a mix of leadership and innovation. Leading an organization or building up a company through a period of rapid growth is hard work, yet maintaining that growth in a sustainable way can prove even trickier. And this year will be a challenging one from both a domestic and an international perspective.

For this reason, Business Review has decided to dedicate this

MEDIA & ADVERTISING 42 Photojournalism: snaps that crackle and pop

48 It all ads up: advertising shoulders its economic share

issue to 17 business leaders to watch in 2017. They are CEOs, entrepreneurs, venture capitalists and bankers –17 local business leaders whose decisions this year could impact their respective industries and who can set an example of sustainable growth strategies. Each of the business personalities BR features in this cover story are leaders in their own right in the fields in which they are active, be it IT, telecom, finance, banking or real estate. Not by chance, these are all industries whose growth has been fueling the country’s

CITY

economic expansion for years now.

Staying on the same theme, the 12th edition of our flagship event, the Business Review Awards, celebrates the most dynamic entrepreneurs, executives and companies that have continued to innovate and bring new products and services onto the market.

Over 100 nominees and 43 finalists will be competing in ten categories at this year’s Gala, an event that recognizes the outstanding achievements of the business community. They and many others have proven that the economic potential of Romania is still very much alive, an idea that has been promoted throughout the years by both local and foreign investors.

50 The personal is political: art journeys into public spaces 52 Bigging up Bucharest: why we expats love your city 54 Cultural calendar

FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Anda Sebesi, DEPUTY EDITOR-IN-CHIEF: Simona Bazavan JOURNALISTS: Georgeta Gheorghe, Otilia Haraga, 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 CONSULTANT: Valeria Cornean, EVENTS DIRECTOR: Oana Albu, MARKETING: Adina Cretu, Marius Andronic, Patricia Neamtu PRODUCTION: Dan Mitroi, DISTRI­­BUTION: Eugen Musat EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro­

ISSN NO. 1453-729X

www.business-review.eu Business Review | March 2017

6 NEWS

WHO’S NEWS

ter of justice, Florin Iordache, stepped down later.

BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at simona.bazavan@business-review.ro

The political conflict between the president and the ruling coalition comprising the Social Democratic Party (PSD) and the Alliance of Liberals and Democrats (ALDE) seems to have come to a hiatus, as the heads of the two political parKlaus Iohannis hasn’t announced the date of the referendum yet

Alina Cojocaru is the new head of JLL Romania’s valuation department, replacing Catalin Jaloba.

Cojocaru has over nine years of professional background in real estate, and joined the consultancy in 2015 as senior evaluator. She is a member of both the Romanian National Association of Authorized Evaluators (ANEVAR) and the Royal Institution of Chartered Surveyors (RICS).

Anti-corruption referendum gets MPs’ approval Following weeks of street

page 5

Liviu Dragnea, the PSD head, is on trial in a corruption case, while Calin Popescu Tariceanu, the head of ALDE will also be tried for corrup-

their peak brought over 600,000

tion in March. In Tariceanu’s

people onto the streets.

case, the investigation was

Shortly after MPs unani-

into the illegal restitution of

Grindeanu, MPS voted in mid-

mously voted for the referen-

assets and a forest to Prince

February for the organization

dum, Iohannis said he would

Paul of Romania. Tariceanu,

of a referendum on Romania’s

soon announce the date when

who at one point claimed that

anti-corruption efforts and

Romanians would be asked to

Romania lacked rule of law,

the integrity of those holding

vote. The question wording was

said in late February that a lot

public office.

not clear either.

of mayors had been investi-

left government led by Sorin

The initiative of a referen-

Nicoleta Eftimiu has been promoted to franchise country manager at Coca-Cola, the top position in its management structure in South-Eastern Europe, according to company information.

Eftimiu had previously held the role of marketing director at the soft drinks giant. For the past 19 years she has been working directly or indirectly for the company. She first joined Coca-Cola Hellenic Bottling Company Romania as category manager, stills and new business, and later moved to Coca-Cola Romania, where she has held local and regional positions, ranging from brand manager to marketing director.

own legal issues.

and president of the Senate,

By Ovidiu Posirca protests against the center-

ties have had to deal with their

Meanwhile, Grindeanu’s

gated by anti-graft prosecutors

dum was announced by the

government survived a motion

and in the end many of them

president, Klaus Iohannis,

of no confidence in Parliament,

were declared not guilty. This

amid controversy regarding

after two ministers stepped

statement was another sign of

planned changes to the Crimi-

down. Florin Jianu, minister

the tensions that exist between

nal Code, which were later

of entrepreneurship, resigned

mainstream politicians and

dropped by the government in

shortly after the eruption of the

the National Anti-corruption

responses to protests which at

street protests, while the minis-

Directorate (DNA).

CHF loan conversion law ruled unconstitutional

By Georgeta Gheorghe

The Constitutional Court of Romania (CCR) has declared the law on Swiss Francs (CHF) loan conversions unconstitutional.

BNR Governor Mugur Isarescu welcomed the CCR ruling

www.business-review.eu Business Review | March 2017

NEWS 7

Black Sea gas potential attracts billions of euros of local investments

By Ovidiu Posirca There is significant untapped gas potential in the Romanian section of the Black Sea, which could see more oil and

International oil majors have ventured in the Black Sea in search of massive gas resources

gas companies flock to search for resources, aside from the

haven’t yet reached the extrac-

contain between 10 and 20 bil-

majors that have poured more

tion stage for gas, but this could

lion cubic meters was discov-

than EUR 1 billion into deep

happen by the end of the decade,

ered in the Black Sea. He added

water explorations.

according to market analysts.

that the BSOG had invested

Meanwhile, Russian oil major

around USD 200 million in its

director for oil reserves and

Lukoil and state-owned gas

local concessions.

resources concessions within

producer Romgaz have invested

“The total (investments –

the National Agency for Min-

USD 500 million in two separate

e.n.) could eventually reach

eral Resources (ANRM) a large

blocks from offshore Romania,

USD 500 million,” the executive

company is planning to invest

added Gal.

told Agerpres.

According to Sorin Gal,

in the Black Sea.

In mid-February, Black Sea Oil

Romania’s royalties scheme

& Gas (BSOG), owned by Carlyle

for oil and gas developments

that the consortium compris-

International Energy Partners,

has remained unchanged since

ing US oil major ExxonMobil

said it could start gas production

2004 and the last tender for

and Austrian OMV Petrom has

from one of its concessions in the

concessions took place seven

invested over USD 1.5 billion in

Black Sea in 2019. Mark Beacom,

years ago. The government

its drilling program in a Black

the head of the company, said

hasn’t provided a timeframe for

Sea perimeter. The companies

that a gas deposit estimated to

potential changes in this area.

He said in late February

CCR president Valer Dorneanu said the law breached

adopted in the Senate.”

Last year, the Dacian Ciolos

the principle of bicameralism.

government challenged at the

Moreover, the reconversion

CCR the draft law adopted by

solution adopted by the Cham-

Parliament on the conversion

ber of Deputies was flawed and

of CHF loans using the foreign

contradicted several EU direc-

exchange rate valid on the day

tives. The court allowed the

the contract was signed.

argument of unconstitutional-

The governor of the National

ity, commenting, “The Senate

Bank of Romania (BNR), Mugur

adopted the law in the form

Isarescu, said the decision was

its initiators drafted it, and at

“fair”, and should be enforced,

the Chamber of Deputies in

adding that a solution for bor-

practice, all legal solutions, all

rowers in CHF was provided by

articles were amended, failing

the Civil Code.

to take into account the texts

Mihai Macelaru has joined Clifford Chance Badea as counsel. He has more than 13 years of experience with various law firms, including a partner position at an international law firm.

He specializes in mergers and acquisitions, joint ventures and privatizations on the capital markets. Over the years, Macelaru has taken part in numerous deals, in areas such as real estate, telecommunications, medical services, food, retail, and the auto parts industries.

Marius Popescu will take over as CEO of NN Turkey in April. He has been working for the insurer in Romania for the past 12 years in various positions, including CEO of NN Investment Partners and CEO of NN Pensii. Popescu has led NN’s operations in Romania since 2013 as CEO. His replacement will be announced shortly, according to company officials.

Pascal Cassecuelle has been appointed crop science country division head for Romania, Bulgaria & Moldova by Bayer. He is a graduate of Paris Business School (ESCP-EAP). Having started in sales in France, Cassecuelle has assumed over the years various country and global leadership roles for Bayer’s crop science division in Asia and Latin America. He also spent a number of years at the firm’s environmental science division, overseeing emerging markets, and had recently led a global project out of the crop science headquarters in Germany.

8 COVER STORY

www.business-review.eu Business Review | March 2017

17 BUSINESS LEADERS TO WATCH IN 2017 They are CEOs, entrepreneurs, venture capitalists and bankers – all in all 17 local business leaders whose decisions this year could impact their respective industries and who can set an example of sustainable growth strategies.

By Simona Bazavan

www.business-review.eu Business Review | March 2017

COVER STORY 9

O

nly two months into 2017 it has become clear that one of the few certainties of the year ahead is that it will be a challenging one. The European economy continues to show signs of

strain from the overall global slowdown. There is also Brexit to deal with as well as worrying news of an unpredictable Trump administration coming almost on a daily basis.

Back in Romania, the forecast is that the economy will continue to grow above the EU average, albeit below last year’s level, according to the most recent estimates. There are also reasonable concerns that the international context will start producing effects sooner or later too, exacerbating the existing domestic challenges.

This all shapes up into a rather confusing and unpredictable environment, one where the example set by business leaders who manage to secure sustainable growth, no matter the context, becomes ever more relevant. For this reason, BR is dedicating this edition’s cover story to 17 local leaders worth watching in 2017.

Each of the business personalities BR features in this cover story are leaders in their own right in the fields they are active in, be it IT, telecom, finance, banking or real estate. Not randomly, these are all industries whose growth has been fueling the country’s economic expansion for years now and which will undoubtedly continue to do so throughout 2017.

They have climbed the ranks of their respective organizations before becoming CEOs or have set up successful businesses from scratch that are now playing in the same league as international and long-established companies. Altogether, all these leaders head companies that can boast positive results for 2016 or have secured successful exits as investors. Looking ahead in 2017 there are even more reasons to watch them closely. Leading an organization or building up a company through a period of rapid growth is hard work, yet maintaining that growth in a sustainable way, especially during challenging times, can prove even trickier.

With competition firing up across the field on the local market, it becomes clear that sustaining growth will require a mix of leadership and innovation. These leaders’ solutions to coming up with and implementing such sustainable growth strategies will most likely become trends that others will soon follow. For this reason they are all leaders worth watching in 2017.

Last but not least, BR has nominated as the 17th leader Romanians’ newly discovered voice against rule of law breaches. After large-scale protests forced the government to scrap a hastily passed decree seen by many as a get-out-of-jail-free card for corrupt politicians, Romanians have proved that they can overcome their political apathy and claim leadership for themselves.

Maybe this can even set an example for business leaders, who in the face of recent ruses from some local politicians should step forward and be more vocal about their companies’ contribution to the overall development of the Romanian economy and business scene. Romania maintains a strong position as an attractive business destination in the region, not least because of the example set by the companies operating here, and on many occasions because of the lobbying done by some of their leaders themselves.

www.business-review.eu Business Review | March 2017

10 COVER STORY

Banking on healthy operations With a financial-banking professional background, Fady Chreih, CEO of Regina Maria, moved into the healthcare sector and managed to make the private healthcare network Regina Maria one of the largest players on the market.

By Anda Sebesi

F

ady Chreih started his career as a

hospital will have a maternity ward, an im-

banker, working on a pilot-project

aging center, an integrated medical analysis

within the Banca Transilvania SMEs

laboratory, a multi-disciplinary outpatient

division. He spent seven years at the bank,

room and an emergency room. It will gener-

where he also held the position of manager

ate some 300 jobs.

of the medical division. In 2011, Advent

In addition, the company continued

International, the private equity fund that

its expansion in Transylvania by opening

bought Regina Maria, convinced him to be

the first medical campus in Targu Mures,

part of the private healthcare network’s

following an investment of EUR 1.7 million.

executive management team. In 2013 Chreih

The new campus has a surface of 900 sqm

was made CEO of the company, since when

and comprises 14 medical offices and over

Regina Maria has been front page news for

20 medical specialties, with a team of 22

its expansion strategy for the local market.

doctors. Staying in western Romania, Regina Maria took over the Dr. Grigoras medi-

BANKING ON EXPANSION

cal centers last year, after having opened its

Last year the company was involved in

own clinic in Timisoara at the end of 2015.

significant transactions that made it one

The three Dr. Grigoras centers employ 70

of the most dynamic players in the sector.

doctors and have over 21,000 corporate

The takeover of Bucharest-based Ponderas

patients. The company reported a turnover

Hospital, a medical unit specialized in

of EUR 1.5 million last year. “Eight years ago

metabolic and bariatric surgery, was by far

when we entered the Cluj market and then

the most significant move for Regina Maria

Brasov, Transylvania became an important

in 2016. According to the CEO, through this

strategic area for the Regina Maria net-

acquisition, Ponderas became the big-

work,” said Chreih.

gest hospital in the company’s network.

Ponderas has treated over 250,000 patients in its polyclinic and hospital and has carried out over 7,000 bariatric interventions.

In March last year Regina Maria closed a EUR 15 million deal to lease a 7,000 sqm private hospital in Cluj-Napoca. The hospital, which will be built to suit, is due to be finished in the second half of 2017, and will become the network’s fifth hospital. This will be Regia Maria’s largest investment outside Bucharest yet. The new regional medical center will offer a comprehensive range of medical specialties in the domain of minimally-invasive surgery including: gynecology, general surgery, pediatric surgery and orthopedics. In addition, the

Private healthcare network Regina Maria was sold in 2016 by investment fund Advent to private equity firm Mid Europa Partners, in what was the largest deal on the local healthcare market. In total, the company currently manages almost 400,000 subscription packages that generate around 30 percent of its business. It has over 3,500 employees and operates a network of 33 own clinics across the country, plus four hospitals and two maternity wards.

15

EUR

Its nationwide expansion continued in 2016 in other regions too. Three years after the opening of the first polyclinic in Pitesti, Regina Maria inaugurated a new polyclinic as a result of a EUR 700,000 investment in mid June. Chreih says that Regina Maria is continuing to focus on growth after expanding the business organically by 20 percent in the past three years. He adds that the company had a 20 percent organic growth last year which would be further supported by the acquisitions the company has made since. The CEO noted that the

million

The investment made to lease a 7,000 sqm private hospital in Cluj-Napoca

firm has also started to sell health prevention packages for SMEs and start-ups and that 10,000 people, mainly in Bucharest, have paid for this service.

www.business-review.eu Business Review | March 2017

COVER STORY 11

The deal architect With 2016 having been a successful year for private equity funds, Serban Roman, vice-president and country director for Romania of Enterprise Investors, was part of two of the most challenging transactions of the year on the Romanian market.

By Anda Sebesi

A

ppointed in July 2015 at the helm

industry experts and support the further

of Enterprise Investors (EI), as the

rollout of Noriel stores throughout the

company’s country director and

country in order to double the number of

promoted to vice-president last year, Serban

shops in the coming years,” said Roman.

Roman is its key figure in Romania, coordinating the activity of the local office and

AN EXIT FROM PROFI ROM FOOD

taking charge of deal development.From his

The local retail market saw a significant

position, he was the architect of two of the

move last year when PEF VI announced

most significant transactions for both the

that it had signed an agreement to sell 100

local market and EI last year, having been

percent of shares in Profi Rom Food, the

involved directly in the acquisition of Noriel

largest supermarket chain in Romania, to

Group, the largest toys and games retailer

Mid Europa Partners. The total equity value

in Romania, and an exit from Profi. Roman

of the transaction was EUR 533 million,

joined EI in 2008 as an analyst and was

making it the largest deal ever completed

promoted to investment director after the

by a private equity fund in Romania and the

successful acquisition of Profi Rom Food in

biggest retail deal in the country’s history.

2010. Prior to moving to EI, he had worked

Profi’s retail network currently has the

for Ernst & Young (now EY) and UniCredit

widest geographical spread in Romania,

CAIB (the M&A arm of UniCredit).

with a strong presence in almost 250 cities,

In April 2016, Polish Enterprise Fund VII

smaller towns and villages. In 2010 EI ac-

(PEF VI), a private equity fund managed

quired from the founder a 100 percent stake

by EI, signed an agreement to acquire 100

in Profi for EUR 66 million, and made a EUR

percent of shares in Noriel Group, from the

10 million capital increase one year later.

Constantinescu family, Noriel’s founding

With EI’s backing, the company underwent

entrepreneurs, and Balkan Accession Fund,

extensive modernization, restructuring

a private equity fund advised by Axxess

and store rollout following the acquisition.

Capital.

Profi soon became the most dynamic retail

As part of the deal, EI was to provide

network in Romania, with a growth pace of

EUR 2 million in funding to support further

over 100 new stores in the last two years.

development. With a network of 47 stores

This has brought the total number of stores

in 27 cities and a strong online platform,

to date to almost 500 from 67 at the time of

Noriel is the leader on the toys retail market

the acquisition.

in Romania. The company was founded by the Constantinescu family in 1995 as an importer and distributor of toys and games.

In 2015, its sales grew by 26 percent to about EUR 30 million. “Once the transaction is completed, we intend to replicate our successful experience with Profi. We will strengthen the management team with

In September last year, PEF VII announced its plan to invest EUR 34.5 million

533

EUR

in the leading sporting goods retailer in the Balkans, Intersport ISI, through a carve-out

million

Total equity value of the sale of Profi Rom Food

transaction from Mercator Group. Following the transaction, which was completed in December, the fund holds 100 percent of shares in the company.

www.business-review.eu Business Review | March 2017

12 COVER STORY

Fueling a dynamic business For Camelia Ene, the recently appointed CEO of Mol Romania, the big challenge comes from the company’s main goal to consolidate its position, as it is now ranked third on the Romanian oil market.

A

By Anda Sebesi

fter seven years in the FMCG sector,

ing company data, Romania had one of the

working for companies such as Nes-

strongest increases on the markets where

tle and Kraft, Camelia Ene switched

the Hungarian group operates, behind the

to the oil industry ten years ago. She is now

Czech Republic and Slovakia but ahead of

the top executive at Mol Romania, having

its mother market.

replaced former CEO Kinga Daradics in

One of Mol Romania’s most recent local

November last year, taking the helm of the

moves was the implementation of the Fresh

third largest player on the local oil market.

Corner concept. This regional concept was

Ene joined Mol Romania in March 2007

implemented as a result of in-depth studies

as shop manager, in charge of the shops in

conducted in more countries where the

the company’s gas stations. From her posi-

Hungarian group operates.

tion she was responsible for the reorganiza-

Fresh Corner involves a shop within

tion and sales increase of over 100 stores inside gas stations that contributed 11 percent of the company’s turnover at that time. But her stint as shop manager was a short one, and in June 2007 she was appointed sales manager.

Then, in October 2010, Ene took over the coordination of the marketing department and three years later became head of retail, responsible for the coordination of the entire activity of Mol Romania’s network of gas stations.

the gas station where customers can buy

The Mol Group operates in over 30 countries and has about 25,000 employees worldwide and over 100 years of experience in its industry. The group controls four refineries and two petrochemical units at the integrated management level of the supply chain in Hungary, Slovakia and Croatia. The company has a network of about 2,000 gas stations in ten countries in Central and South-East Europe, of which over 200 are located in Romania.

The company now has over 200 gas stations and is the third largest player on the local oil market, following investments in new units and the acquisition of some of its rivals. Mol Romania has an 18.9 percent market share on the retail segment and a business of over EUR 1 billion in Romania.

While the company had 120 gas stations

cold meats after filling up. “The Fresh Corner concept pays a lot of attention to fresh food products and the shopping experience.

We ended 2016 with about 50 gas stations where this concept has been implemented and our aim is to have 100 such points by the end of 2017,” said representatives of Mol, cited by Ziarul Financiar. The company has recently inaugurated its seventh gas station in Dolj county following an investment of about EUR 1 million. Its Fresh

18.9 percent

As its strategy shows, the player has a high appetite for expansion on the local market.

various products such as cheese, coffee and

Corner includes coffee, fresh pastries and sandwiches.

Last October, the Mol Group’s board of directors approved its long-term strategy to 2030. One of its key goals is to consolidate and develop Mol’s position as regional leader in Central and Eastern Europe (CEE).

is the market share that Mol Romania has on the retail segment

in Romania at the end of 2010, since then

According to the strategy, the company aims to increase its market share on the fuel segment in the extended CEE region from

it has continued to invest in its network

Ziarul Financiar quoting the company’s re-

over 20 percent now to 25-30 percent and

and took over all 42 Agip gas stations from

ports, was announced in mid-2014 but got the

to be ranked among the top 25 companies

the Italian company ENI. The transaction,

green light from the Competition Council at

in its sector regarding the profitability of its

worth about EUR 50 million, according to

the beginning of 2015. According to ZF, quot-

gas stations.

www.business-review.eu Business Review | March 2017

COVER STORY 13

The telecom market developer After seven years as CEO of Orange’s subsidiary in the Republic of Moldova, Liudmila Climoc was appointed to the same role at the helm of the French telecom giant’s Romanian operations in May 2016.

By Ovidiu Posirca

L

iudmila Climoc has been instru-

OVERSEEING SMART DEVELOPMENTS

mental in helping Orange Romania

At present, Liudmila Climoc is the only

reach a significant milestone with

female CEO in the local telecom sector,

the national launch of its Home service in

a dinamic market characterized by fierce

September 2016 and completing its exist-

competition and massive investment

ing portfolio of mobile voice and internet

requirements.

services, satellite and OTT television with

The investments in developing the most

broadband fixed services and digital TV

extensive 4G network also aim to reduce

through fiber optics. The company has also

the digital gap and enable digital transfor-

launched its own mobile payment system

mation much necessary for connecting the

called Orange Money, which can also be

clients not only to their favorite content,

used for cash transfers.

but also to all opportunities.

In the first nine months of last year,

Orange is also working on the first smart

Orange Romania saw its turnover go up by

city pilot project, currently under develop-

4.3 percent year-on-year to EUR 727 million.

ment in Alba Iulia, western Romania. The

The telecom operator had close to 10.2

company will offer a wide array of services

million customers as of September 30 2016,

that will be tested in the city, such as a

having added 300,000 since the previous

solution for smart public transit, one for

quarter.

smart public lightning and secure internet

The mobile player has seen a surge in 4G mobile traffic and its number of clients for 4G smartphones stood at 1.9 million.

Under the mandate of Liudmila Climoc, who has 19 years’ experience in the telecom sector, Orange Romania has expanded its 4G network coverage in 2,200 localities.

Orange’s 4G network covers over 6,700 localities and the service is also available in all the subway stations in Bucharest. In addition, the telecom operator has launched locally VoLTE and WiFi Calling (currently in testing phase), as part of an international

access for all components of the smart city.

Orange Romania had 10.17 million customers at the end of September 30 2016, an increase of 300,000 compared to the previous quarter, as the subscriber base grew by 4.8 percent. At the end of Q3 2016, the operator had 1.9 million clients using 4G services.

97

Last year Orange also launched solutions for smart homes, through which clients can receive real time notifications on their smart devices from sensors placed in their homes in the event of incidents such as floods or break-ins.

“We talk about smart cities, about Internet of Things, about big data and the

the urban area covered by Orange’s 4G network

percent

aggregator and the common denominator is the network. Orange is committed to offering its customers, both business and end consumers, the connectivity to reach

expansion program. The Voice over LTE

as the leading network for the performance

their goals in this transformation process.

technology facilitates dramatically reduced

of mobile internet and voice services by LCC

In this equation of digitalization, Orange is

connection times (falling from approxi-

International, the independent organization

an enabler, integrating solutions to antici-

mately eight to two seconds) and improved

with over 30 years’ worth of experience in

pate and answer to the ever growing needs

simultaneous use of voice and high speed

wireless services.

of connectivity. In a growing digitalized

data, in particular. With the launch of WiFi

The operator said in early 2017 that thanks

world, Orange’s objectives are simple – to

Calling, Orange is extending and comple-

to the investments carried out in 2016, its 4G

lead the digital transformation and accom-

menting its mobile network to offer users

network covered 97 percent of urban areas

pany its customers through digital care,

enhanced indoor coverage.

and 81 percent of the country’s total popula-

interactive apps, digital communities,” said

tion.

Liudmila Climoc.

In late 2016, Orange Romania was named

www.business-review.eu Business Review | March 2017

14 COVER STORY

The bull’s-eye entrepreneur After co-founding his startup in late 2013, with a plan to compete with tech giants of the likes of Apple and Samsung in the growing smartwatch market, Andrei Pitis and his two Vector Watch co-founders sold the business to American wearables maker FitBit, writing history for the local startup scene in the process.

By Ovidiu Posirca

P

itis went into the smartwatch mar-

to open a research & development (R&D)

ket, which was still in its infancy,

facility in Romania, aiming to tap the local

with a product that differentiated it-

IT pool, in which there is fierce competi-

self from its competitors through its 30-day

tion for talent.

battery and the powerful software under

Going forward, we should expect Pitis

the hood of the devices.

to remain one of the key figures of the local

On his way, he was supported by se-

IT sector, which could reach EUR 4 billion

rial entrepreneurs and financiers Radu

in value this year. And the local startup

Georgescu, of Gecad Ventures, and Marius

scene is also set to benefit, as Pitis is among

Ghenea, of 3TS Capital Partners. Georgescu

the few entrepreneurs to have attracted

was the first to have provided seed financ-

a Silicon Valley-based buyer of Romanian

ing of EUR 500,000 to Vector Watch in 2014,

technology.

when the startup was working to roll out its

For FitBit, the acquisition of Vector

first range of watches.

Watch was announced two months after

“To predict the future I am looking at

the American wearables maker moved to

what children are doing right now. (…) Most

take over Pebble, a pioneer in the smart-

of the kids that are connected now will not

watch business.

want an unconnected watch when growing

According to the Financial Times,

up,” said Pitis last year, speaking at a Busi-

FitBit’s acquisitions could mean that the

ness Review event.

company is looking to build its capabilities

Since its launch, Vector Watch has been

to take on Apple in the general-purpose

able to raise USD 12 million in three financ-

smartwatch category.

ing rounds as it started selling smartwatch-

Meanwhile, FitBit has announced that

es around the world. Pitis attracted veter-

it will cut 6 percent of its global workforce

ans from the watch industry to his startup,

due to falling sales of its fitness trackers

including Joe Santana, the former CEO of iconic watch brand Timex, and Steve Jarvis, the former creative lead on projects with Timex and the Nike FuelBand, as design director. COO Ron Spencer was the former COO of Bulova, Fossil, according to TechCrunch.com.

FITBIT’S PLANS IN THE SMARTWATCH BUSINESS This year, Pitis returned to Romania’s tech scene as the vice-president of engineering and head of the Bucharest office of Fitbit.

The NASDAQ-listed company is planning

Vector Watch was incorporated in the UK in 2014, the same year that it launched its first range of watches. Its CTO and co-founder was Andrei Pitis, currently the head of the Bucharest office of FitBit, the American wearables maker that took over Vector last year.

12

USD

during the holidays. The company said that revenues for the fourth quarter would be more than a fifth lower than it had previously expected, in the range of USD 572 million - USD 580 million, suggesting a year-on-year decline of at least 18 per cent.

As for the smartwatch market, the International Data Corporation (IDC) announced that shipments declined by 51.6 percent in the third quarter of 2016 year-on-year to

million

the financing attracted by Vector Watch

2.7 million units. In this period, Apple had a market share of 41.3 percent, followed

by Garmin and Samsung with 20.5 percent and 14.4 percent, respectively.

www.business-review.eu Business Review | March 2017

COVER STORY 15

The e-commerce king eMag, controlled by South African internet and media group Naspers, is racing to reach the EUR 1 billion milestone in turnover under the helm of Iulian Stanciu, the online retailer’s CEO.

S

By Ovidiu Posirca tanciu, who believes that everyone

on-year.

should try to open his/her own busi-

As mobile “eats” everything, the retailer

ness before seeking a job at a multi-

is also working on artificial intelligence and

national or in the public sector, has contin-

is planning to roll out its own chat bot, in

ued to develop the eMag marketplace, in a

a bid to increase interaction with potential

bid to get more sellers on the platform, and

buyers. Last October, representatives of

in turn attract more buyers.

eMag said in a press conference that the

The retailer was set to record 2,000

voice command was becoming even more

sellers on its marketplace last November,

important than the touch option on mobile

and Stanciu said that the target was to

devices.

double the figure by this summer. In fact,

Last year, the retailer also announced

the retailer’s business has been recording

the launch of a tech testing and imple-

two-digit growth in the past few years and

menting center for new technologies,

the CEO is confident that this pace will be

representing a EUR 500,000 investment.

maintained in the coming years.

eMag Labs will test and implement

But while global e-commerce giant

new technologies such as Virtual Reality

Amazon is doing PR stunts with drones

(VR), Internet of Things (IoT) and machine

that deliver small parcels to clients, eMag

learning, among others, to be used in e-

is working hard to make sure that products

commerce. The solutions developed here

ordered by customers get to their destina-

would also be implemented by Naspers at

tion as soon as possible. The retailer has

global level.

inked a deal with state-owned postal opera-

And while working on new technolo-

tor Posta Romana to accept eMag parcels

gies, Stanciu had time to negotiate the

as delivery firms have come under intense

acquisition of PC Garage, the online IT and

pressure, especially during the Romanian

electronics retailer, which was owned by

version of Black Friday – also launched by

Romanian entrepreneur Marius Ghenea.

Stanciu in 2011.

MOBILE AND AI WORKING TOGETHER Under Stanciu’s watch, eMag has moved its operations aggressively onto mobile, rolling out its own app that was intensively used during the latest Black Friday event.

In 2016, the e-commerce player recorded a traffic increase of 63 percent to 270 million visits, and an average of 55 percent of the total traffic came from smartphones and tablets. Mobile generated 60 percent of the traffic in September and December.

Meanwhile, visits from desktops reached 120 million, an increase of 23 percent year-

With eMag having branched out in

eMag was founded in 2011 and was one of the pioneers of the local e-commerce industry. In the last 16 years, the company has expanded in Bulgaria, Hungary and Poland. In 2012, Naspers bought a 70 percent stake in the retailer.

the rare cases in which a Romanian firm was able to become a regional powerhouse, Stanciu thinks that the EUR 1 billion worth of orders mark could be reached this year.

In early January, eMag launched a new initiative for local producers that were willing to sell their products through the market-

1

EUR

Bulgaria, Hungary and Poland, in one of

place operated by the e-commerce player.

billion

the targeted value of orders on the eMag platform in 2017

The retailer invested EUR 50 million last year, but Stanciu believes that going forward the challenges are related to the logistics infrastructure and the attraction of employees.

www.business-review.eu Business Review | March 2017

16 COVER STORY

The venture risk taker Veteran entrepreneur and investor Radu Georgescu continued to provide early stage support for startups last year and redesigned his group, founded 20 years ago as Gecad Ventures, in a move designed to underline the investment component of the IT conglomerate.

By Ovidiu Posirca

A

year. Gecad Ventures exited Vector

Georgescu says that he is investing in

Watch, the startup founded by

companies with high growth potential

Andrei Pitis, in which Georgescu made an

with the ability to innovate and deliver

initial seed investment of EUR 500,000

new ideas and products in their markets.

followed by additional financing in the next

The entrepreneur explains that he is look-

few years of USD 2 million.

ing primarily at firms focused on software

nd Georgescu was kept busy last

On the startup promotion platforms,

On the subject of Vector, Georgescu said

and hi-tech companies, including security

in early 2016 that the startup shouldn’t be

software, cloud technologies, e-Commerce

perceived as a watchmaker but as the cre-

and payment methods.

ator of “the ultimate system for wearables”.

He went on to say that he had known Pitis

RUN A COMPANY, SELL IT

for a long time, a factor which also con-

Georgescu is among the few entrepreneurs

vinced him to provide early financing for

in Romania that have been able to attract

Vector, which was taken over by American

global investors to their companies right

wearables maker FitBit last year.

from the early days. For instance, he sold

The group also invested in Smart Bill,

RAV Antivirus, which he founded in 1994,

the Romanian provider of billing solu-

to IT giant Microsoft nine years later, at a

tions and SaaS services, alongside Catalyst

time when the Romanian tech scene was

Romania. Smart Bill has been advised by

not that visible.

Gecad since 2013 and the EUR 1 million in fresh financing will be used for company development.

In late 2016, Georgescu’s fund provided a seed investment to TypingDNA, a Romanian behavioral biometrics cyber security startup based on artificial intelligence. The investment fund also led a USD 1.5 million seed round investment with Playfar Capital into Gluru, a smart task assistant that uses artificial intelligence to predict the actions of users.

Gecad also put EUR 500,000 into SymphoPay, a Romanian FinTech startup that brings innovative solutions for POS pay-

Gecad Ventures provides financing in the USD 1 - USD 10 million interval to software and hi-tech firms. The group, which was founded in 1992 by Radu Georgescu, is currently looking at companies in FinTech, security software, cloud technologies, e-commerce and wearables.

7

South African internet and media group Naspers. Gecad was also an early backer of Smartree, the HR outsourcing and payroll firm that was acquired by Enterprise Investors in 2010 and sold six years later.

Georgescu also got involved in the bitcoin market, but quickly exited Coinzone, which provided a payment gateway and

the number of exits recorded by Gecad Ventures to date

ments in stores.

The entrepreneur has been described

Seven years later he sold ePayment, which was later rebranded as PayU, to

merchant solutions for cryptocurrencies.

The entrepreneur had provided USD 1.4 million in seed capital to the company.

Next, Georgescu sold Avangate, a global e-commerce platform, to private equity firm Francisco Partners. The Gecad head

ally removes himself from the main manage-

also sold Axigen, a Windows & Linux mail

in an interview for start-up.ro as more of a

ment role when the firms he founds reach a

server, to a group of Romanian investors

strategist and not a president as he gradu-

certain level of development.

in 2014.

www.business-review.eu Business Review | March 2017

COVER STORY 17

A balanced banker in a digital future In a tough regulatory environment for banks, Sergiu Manea, the first Romanian CEO of BCR, has been able to keep the Austrian lender on a risk reduction course, while boosting financing activity for the economy.

By Ovidiu Posirca

M

anea, who has worked for BCR

eters. However, later last year, the lend-

since 2012, already had more

ing terms were relaxed and the Austrian

than 15 years of experience

bank said that demand for new housing

under his belt in the local and international

in Romania remained high. Several banks

financial sector, when he accepted a man-

with foreign capital also cut down-payment

agement position at the Erste-controlled

requirements after rushing to hike them

lender.

when it became clear the debt discharge bill

In the past few years, BCR had been re-

would be signed into law.

structuring its portfolio of non-performing loans (NPLs) and with Manea in the driver’s seat, the process has accelerated as the bank

MIXING TRADITIONAL AND DIGITAL BANKING EXPERIENCES

switched its focus to an increase in lending

As Romanians are already using their

to individuals and firms.

smartphones for regular banking activi-

Over September 2015-2016, the bank

ties, which has translated into additional

drastically reduced its share of NPLs from

investments on the part of the lender in its

22.2 percent to 13.3 percent in a complex

IT infrastructure, BCR took another step

process, considering that BCR is the biggest

and launched the first digital bank branch

lender in Romania by assets. The bank has

in Romania.

also continued to provide support schemes

In this new unit called eXperience BCR,

for borrowers who were struggling to repay their loans. In the past two years, it has inked cost reduction deals with 90,000 customers, in a move that was also designed to remove litigation risks.

BCR, which was among the first banks to have shifted its bulk of lending into the local currency, provided RON 2.2 billion worth of fresh financing. The additional money went to corporate clients that needed to finance their working capital and chain of suppliers.

In the retail segment, the fresh financing amounted to RON 3.8 billion, driven mainly by the state-backed mortgage scheme Prima

the bank’s employees use technology to

BCR operates through a network of 512 branches in towns with more than 10,000 inhabitants. It has 21 business centers and 23 mobile offices for companies. The lender also has around 2,600 pieces of equipment for selfbanking and 12,000 POS terminals.

1.1

RON

billion

BCR’s profit in the first nine months of 2016

Casa.

In the first nine months of 2016, the lender recorded a profit of RON 1.1 billion, down by around 11 percent compared to the previous year.

provide an upgraded advisory experience to retail clients. The lender said that this was one of the steps that it had deployed to prepare clients for the digital banking revolution. With bank products literally a touch of a button away and with a video counseling and business hub for clients, BCR is carefully mapping the new banking environment, which is already seeing the advent of disrupting forces such as FinTech.

On the theme of the changing times for banks, BCR also decided last year to relocate part of its staff from the current HQ

banking system, which is controlled mainly by

in Bucharest Financial Plaza (BFP) to The

large international financial groups.

Bridge business park, which is currently

The approval of the debt discharge law

under construction in the Grozavesti-

last May, which was criticized by bankers and

Orhideea area. The move was part of BCR’s

even central bank officials, saw BCR decide to

strategy to consolidate the central func-

marked by increased scrutiny by Parliament

temporarily hike the down payment for new

tions of the bank, which employs some

regarding the lending operations of the local

loans to 35 percent, citing new risk param-

7,100 people.

Manea’s first year at BCR was also

www.business-review.eu Business Review | March 2017

18 COVER STORY

The stock exchange developer With Ludwik Sobolewski at the helm of the Bucharest Stock Exchange (BVB), the Romanian capital market last year saw the first initial public offering (IPO) of a private company in close to a decade, underlining the Pole’s strategy to open the market to entrepreneurs and smaller Romanian firms.

By Ovidiu Posirca

E

ver since he took the helm of the

trica were listed on the BVB, but the public

BVB in 2013, Sobolewski has argued

authorities have not yet said when this

that the Romanian capital market

could happen.

should act as an alternative financing op-

Meanwhile, under his mandate the BVB

tion for companies in growth mode, but

has started to actively look for “hidden

also for Romanian entrepreneurs looking to

gems” in the tech sector – young compa-

gain visibility for their firms.

nies with the extensive growth potential

Last year, the value of deals on the BVB

that could represent good investment

rose by 3.6 percent to over RON 9.1 billion

destinations for local investors. However,

versus the previous year, while on the alter-

this could prove to be a tough nut to crack

native trading system, share transactions

as most of the startups born in Romania in

rose by 128 percent to RON 206.8 million.

recent years achieved success when they

Although no IPOs of state-owned com-

set up in the UK or USA. Moreover, the

panies happened last year, there was the

coveted startups in the tech industry have

listing of MedLife, the private healthcare

preferred to remain private and an IPO is

services provider founded by the Marcu

not really entrepreneurs’ main aim.

family. The company was able to sell a 44

Another step that brought retail

percent stake for EUR 50.8 million.

clients closer to the stock exchange was

The AeRO market, which targets SMEs

the launch of state bonds, in an offering

and startups, continued to develop last

that was oversubscribed. The Ministry of

year. The whole concept of the special

Finance raised RON 735 million, way above

market for smaller companies had been

the RON 100 million it had initially planned

promoted by Sobolewski while he was head

to net from the sale. In three weeks of the

of the Warsaw Stock Exchange, where it

offering, 20,185 retail clients bought state

attracted hundreds of issuers.

bonds, up 16-fold compared to the auction

Right now, Sobolewski is working to

of the previous year.

consolidate the community of retail investors in Romania, through special events and financial education initiatives, and his team has been working with the Financial Supervision Authority (FSA) to remove some

Going forward, Sobolewski’s plan

The Bucharest Stock Exchange (BVB) registered a net profit of RON 7.87 million in 2016, up by 19 percent on 2015, on the back of growing revenues and a reduction in costs.

trading barriers.

EMERGING STATUS IN SIGHT One of Sobolewski’s main targets is to take the local market to emerging status, which would bring a new category of high-profile investors onto it. This could happen if state-owned energy producer Hidroelec-

could revolve around the continuation of current initiatives. This will mean intensified efforts to get more IPOs from private companies, the attraction of startups onto the AeRO market, and the growth of the

3.6

percent

the growth in the value of deals on the BVB in 2016

retail investor base.

But these strategic goals need the support of all stakeholders, including the public authorities, which haven’t paid enough attention to the capital market in recent times.

www.business-review.eu Business Review | March 2017

COVER STORY 19

Cementing a digital move Less than one year after Sofiane Benmaghnia took over as CEO of Holcim Romania, the news has broken that the cement producer could launch a digital project.

By Simona Bazavan

B

enmaghnia, who was appointed

to cut our bills and solve communities’

general director of Holcim Romania

problem with garbage at the same time.

in April last year, has an extensive

The volume processed last year was the

professional background in the construc-

equivalent of the garbage produced in Cluj

tion materials industry. The 39-year-old

in one year. We will go on investing in the

Algerian-Canadian joined the now Lafarge-

Alesd plant to increase its capacity to the

Holcim group in 1999 as a financial analyst.

point where it can process the amount of

Before coming to Romania he had served as

waste produced by a city like Buzau in a

general director of Meftah Cement Opera-

single year,” said Benmaghnia. At the same

tions, Aggregates & Concrete in Algeria

time Holcim will invest in logistics space in

since 2011, and prior to that financial direc-

order to improve distribution, according to

tor at Lafarge Concrete and Aggregates in

the same source.

the Middle East for three years.

Holcim Romania has invested over EUR

Now, less than one year since Benmagh-

700 million over the years in increasing

nia took over, news has broken that under

productivity and modernizing its local

his leadership Holcim Romania could

plants. One example is the EUR 15 million

launch an online project, an interesting

investment in a heat recovery installation

move given that the company’s core busi-

at its factory in Alesd in 2013. The instal-

ness lies offline and has mainly to do with

lation produces electricity using the gases

cement production.

resulting from the cement production

The first step was the launch of Start

process and generates about 15 percent of

Casa Visio, a limited liability company cre-

the electricity the factory uses.

ated in association with Geocycle, another

Benmaghnia has a degree in Trade from

firm controlled by Holcim Romania which

the University of Tunisia, a certificate in

deals in waste management. The concept

management accounting from the Concor-

behind this project “has to do with the

dia University in Montreal, Canada, and an

company’s core business”, representa-

executive MBA from the University of Sher-

tives told Profit.ro, while ruling out an

brooke, also in Canada. Additionally, he is

online store. “We are presently in the early

a certified public accountant (CPA) and a

development phase and we are testing and

certified management accountant (CMA),

evaluating but we haven’t yet validated the concept,” company representatives said in January. Start Casa Visio is a limited liability company whose main activity is online retail and other related activities according to Official Gazette data.

Last year Benmaghnia said Holcim Romania would also go on investing in Geocycle, which transforms garbage into energy for its cement plants. “It is a way

Holcim Romania operates two concrete factories in Romania in Campulung and Alesd, a grinding plant and cement terminal in Turda, 14 ecological concrete plants, three aggregate plants, two special binding material plants and a cement terminal in Bucharest. The company has approximately 800 employees and is part of the LafargeHolcim group that resulted from the merger of Lafarge and Holcim in 2015.

according to Holcim officials.

6

EUR

million

Holcim Romania’s planned investment in Geocycle in 2017

www.business-review.eu Business Review | March 2017

20 COVER STORY

A new chapter for old-school books With e-books gaining more and more ground over physical ones, Bookster has a big challenge ahead: to restore the joy of reading a print book among employees of the Romanian corporate sector.

By Anda Sebesi

A

fter 14 years of executive manage-

sional development (management, strategy,

ment at the real estate consultancy

IT, sales, finance, human resources); per-

firm Colliers Romania, in 2010 Bog-

sonal development (psychology, emotional

dan Georgescu decided to lay the founda-

intelligence, teamwork) and leisure (fiction,

tions of a project with a social impact in the

photography, cooking, parenting, science

community. In 2011, with the help of a team

fiction, history). Business Insider, The New

of students, Georgescu and his business

York Times, Inc., The New Yorker, Harvard

partner, Alexandra Stroe, tested seven ideas

Business Review, Harvard Business School

in a business incubator, Novel Ventures. The

and McKinsey & Company are among the

first social project he decided to set up was

sources of specialized articles to which the

Teach for Romania, part of a global educa-

library grants access.

But Bookster has a high appetite for

tion network called Teach for All.

expansion, and its two founders announced

The former CEO of Colliers is also known as one of the most active promoters of

their intention to extend their business at

reading, being one of the few managers and

international level last year. The reason be-

entrepreneurs ready to put his money into

hind this move is that they intend to reach

supporting the activity. As a result, in 2013,

1 million subscribers, a goal that is achiev-

the two Romanian entrepreneurs launched

able if the company makes its entrance onto

Bookster, a service specialized in loan-

new foreign markets. Poland and Turkey

ing books to employees of both medium

were on their map for the region.

The two entrepreneurs also targeted the

and multinational companies, based on

US because of its size and one particularly

subscription. Bookster, the most modern library for companies, is the result of an investment of about EUR 1 million and has over 30,000 subscriptions from about 200 companies in IT, telecommunications, automotive and FMCG so far.

According to Ziarul Financiar, workers at Banca Transilvania, UniCredit Leasing, ING Bank, Vodafone Romania, Orange, Rompetrol, EY Romania, Regina Maria, Colliers, PeliFilip and Corporate Office Solutions are among Bookster’s subscribers. As Georgescu told ZF, books are recommended to subscribers based on a specific algorithm that tries to understand the profile of each user and makes recommendations depending on what they like and need.

Bookster was founded by Bogdan Georgescu and Alexnadra Stroe in 2013. At present, about 100,000 employees have access to its titles and materials. Bookster has 200 companies in its portfolio on the local market and about 50,000 books and 30,000 subscribers so far. According to ZF, quoting Georgescu, the company aims to attract 1,000 new subscribers per month and reach 40,000 subscribers in a year.

1

EUR

salient piece of information: in America online books have already unseated print ones. In addition, the American legal framework is quite simple and permissive for such businesses. As a result, the company participated in a start-up accelerator called 500 Startups in order to extend its business on the US market last year. As Georgescu told ZF, after passing the first two interviews, the two entrepreneurs decided not to take it further as they were asked to sell part of their business. “We don’t plan to sell

million

the investment made so far in Bookster

the local business,” Georgescu told ZF. He added that the company expected a EUR 1 million turnover last year with a profit margin of 10 percent. According to in-

case studies, audiobooks and video materials,

ternal estimations, the firm is worth about

month per subscription, depending on their

and subscription entitles users to unlimited

EUR 5 million, and the two entrepreneurs

size. Items are delivered to their office on a

access to all Bookster products.

are thinking of listing it on the stock market

Companies pay between EUR 3 and 5 per

weekly basis. The library has books, articles,

The library has three major genres: profes-

in the next future.

www.business-review.eu Business Review | March 2017

COVER STORY 21

Homing in on EUR 1 billion After growing the Dedeman DIY business to 45 stores and estimated sales of over EUR 1 billion in 2016, Dragos Paval, its founder, is now looking to diversify his and his family’s investments by setting up two investment funds.

D

By Simona Bazavan

ragos and Adrian Paval look set

ness from a small store to a 4,000 sqm

to become the only Romanian

format and that is because we started from

entrepreneurs whose business has

scratch. In the early years we were bring-

passed the EUR 1 billion sales milestone in

ing in the goods from wholesale stores in

a decade. Some 24 years after founding the

Bucharest using my father-in-law’s Dacia

Dedeman DIY retail business along with his

Break car, but I was still making ten times

brother, Adrian Paval, he announced last

more than as a state employee,” Dragos

year that he would set up two investment

Paval told ZF in 2009.

funds. The move is part of a strategy to di-

Over the years the siblings have proved

versify the business and create alternative

to have a coherent development strategy

sources of income beyond DIY retail. Given

for Dedeman, which has grown to become

that the two have a combined fortune of

the largest DIY retailer on the local market,

some EUR 950 million, which puts them

and this despite strong competition from

second in the Capital 300 richest Roma-

established international players, espe-

nians ranking for 2016, their potential for

cially in the years before the crisis. The

new investments is significant.

strategy included buying the land for the

One will be a real estate investment

stores they later developed, taking a low-

fund while the other will be set up for

price approach, working extensively with

investments in Romanian companies, both

local suppliers and gradually developing

startups and mature firms, according to

their network, starting with their home

the businessman. Dragos Paval is already

region of eastern Romania and only later

rumored to be in the running to buy AFI

coming to Bucharest.

Europe Romania’s office park in the Cotro-

Such measures helped local player

ceni area of Bucharest, which is estimated

Dedeman reach and later consolidate its

to come with a price tag of about EUR 150

position as the leader of the Romanian DIY

million.

As part of the same business diversification strategy, Paval bought a 28.9 percent stake in local bricks manufacturer Cemacom this February. This happened shortly after Finnish investment fund KJK sold its 27.9 percent stake in the company’s shares.

Dragos Paval has come a long way since starting the Dedeman business with a small 16 sqm store in Suceava, eastern Romania, back in 1992. After graduating in mathematics he began working as an IT specialist for a state company in Bacau, but soon decided to set up his own business, where he was later joined by his brother Adrian.

“It took us ten years to grow the busi-

Dedeman is the largest player on the Romanian DIY market. It had a network of 45 stores at the end of 2016 and its owners were planning to reach a turnover of over EUR 1 billion that year.

The company is on track to hit the target, given that in the first semester it posted a 26 percent turnover increase to a total of some EUR 500 million. The previous year it reported a EUR 980 million turnover.

45 the number of stores in the Dedeman network at the end of 2016

market, while international rivals such as Praktiker, BauMax and Obi struggled after 2008 to the point where they had to sell or exit the local market. Unlike its international competitors, the company has managed to maintain a steady expansion rhythm over recent years, reaching a network of 45 outlets at the end of last year, which is estimated to generate a turnover of over EUR 1 billion, according to company data.

The two plan to further expand the Dedeman network and in March they will open their largest store yet, in the Baneasa area of Bucharest, close to the only Ikea outlet in the capital.

www.business-review.eu Business Review | March 2017

22 COVER STORY

Development potential With David Hay at its helm, AFI Europe Romania has grown to the point where it could this year sell its office project in Cotroceni, in what has the potential to become the largest office transaction on the local market.

By Simona Bazavan

D

avid Hay took over as CEO of AFI Europe Romania in 2011 after

800

having previously worked in the

Czech Republic, the US and Nigeria. He has a professional background of over 25 years

EUR

in real estate and has been working for the Israeli real estate company since 2006.

million

the estimated value of AFI Europe Romania’s commercial properties and projects under development as of September 30

Under his leadership the developer has been constantly expanding on the local market, developing AFI Park, a 70,000 sqm office project next to its flagship property on the local market, AFI Cotroceni, building

nia has seen its revenues go up over the

a second shopping mall in Ploiesti and now

past few years. In the first nine months of

kickstarting several new projects.

2016 alone, the developer reported a net

Hay, who has supervised the develop-

operating income (NOI) from its income-

ment and completion of AFI Park, could

producing assets of more than EUR 34

now see it sold in what could become

million, which was up 14 percent compared

the largest office transaction to date in

to the same period a year ago.

Romania. Last August, news broke that the

And under his leadership, the developer

company was planning to sell three of the

has plans to further expand. At the end of

office buildings that are part of its AFI Park

last year, AFI Europe Romania started the

project in Bucharest for EUR 92.5 million

construction of its second office project in

and at a 7.75 percent yield. Yet by Decem-

Bucharest. AFI Tech Park will be a 50,000

ber, it had been made public that the entire

sqm gross leasable area (GLA) business

office park was up for sale. At that time it

park located close to the J.W. Marriott Hotel

was announced that Lev Leviev, the busi-

and the Romanian Parliament. The first

nessman behind Africa Israel Investments,

phase of the project, comprising 20,000

had signed a non-binding letter of intent to sell AFI Park, according to a Tel Aviv Stock Exchange report. The developer then evaluated the office project at around EUR 164.4 million, according to media reports.

Should the deal be closed for around EUR 150 million, it would be the largest office transaction ever sealed on the local market. AFI Park has a 70,000 sqm GLA and its occupancy rate was close to 100 percent last September, according to company data.

With Hay at its helm, AFI Europe Roma-

AFI Europe has been active in Romania since 2005. Its flagship property on the local market is the AFI Cotroceni shopping mall next to which AFI Park was later developed. The shopping mall generated a NOI of more than EUR 25 million in the first nine months of 2016, representing a 10 percent increase y-o-y, while its retailers saw their combined turnover increase by 12 percent y-o-y to EUR 170 million.

As of September 30, AFI Cotroceni was valued at EUR 467 million.

sqm GLA, will be delivered in the first quarter of next year, according to company data.

The developer says it is currently also planning a 45,000 sqm GLA shopping mall and a 20,000 sqm GLA office project in Brasov, central Romania. “In the near future”, it also wants to develop a retail park on an 80 ha plot of land it owns in Arad, western Romania, and a mixed-use project on a 148 ha plot it has in the Bucurestii Noi neighborhood of Bucharest.

www.business-review.eu Business Review | March 2017

COVER STORY 23

The voice of many The Foreign Investors’ Council (FIC) represents some 128 companies doing business in Romania, making its president, Eric Stab, a voice to be reckoned with.

By Simona Bazavan

L

ast year Stab was elected for his

128

second consecutive term as head of the FIC, an organization represent-

ing foreign investors doing business in Romania. “I believe the FIC is an important

companies are part of the FIC

voice of the business community and a

lost and rebuilding this image will require

well-respected one in the whole country. I

significant effort and take a lot of time and

think it is important that the foreign inves-

energy,” the organization warned at the

tors who represent a significant share of

time.

Romania’s GDP can also express their views

As head of the FIC, Stab has always talk-

on the business climate in the country, on

ed about Romania’s potential for growth.

the issues they are facing and how to ad-

During the latest edition of BR’s Foreign

dress them,” he told BR in an interview last

Investors’ Summit, he expressed his con-

year.

fidence that it was possible for Romania to

The voice of an institution such as the

become one of the top ten economies in

FIC becomes particularly relevant in the

the EU.

context of potential legal changes, such

In this context, the FIC’s general priority

as those proposed by the government this

remains to ensure that Romania has an

February. At that time the FIC had ex-

attractive business climate, he previously

pressed its concern regarding the amend-

told BR. “This is what we are very focused

ments the government had made to the

on, with the goal being to attract addi-

Penal Code. “The FIC has always supported

tional investments and to ensure that the

a predictable and transparent legislative

investors that are already here are happy

process and has appreciated the results of

with their investments, so that together,

the anticorruption policies in Romania. The

through those investments, we can boost

FIC believes that any government, regard-

economic growth,” he outlined.

less of electoral cycles, should consider

Stab has been in Romania since 2010,

the fight against corruption and structural

initially as executive chairman, and from

reforms to the Romanian economy as top

2012 as executive chairman and CEO of

priorities,” the organization said this Feb-

GDF SUEZ Energy Romania, which in 2015

ruary, after the government issued an emer-

was rebranded as Engie Romania.

gency ordinance that would have partially decriminalized abuse of office.

The FIC said it believes that the way the government had planned to introduce these changes could have sent a negative signal to investors and international institutions and Romania would have thus lost “the opportunity of attracting new investments.

Investors’ trust in Romania as a friendly country for doing business can be easily

The FIC’s self-declared main objective is to promote sustainable economic growth by improving Romania’s investment landscape. The organization considers its key roles to be contributing to the improvement of the Romanian legal framework for commercial and tax matters, the promotion of sound business ethics and projecting a good image of foreign investment and business in general.

The head of the FIC has vast professional experience in the energy sector.

He joined Gaz de France in 1991, and went onto hold positions in the German subsidiary of Gaz de France and in GASAG, the Berlin gas company. Stab was later promoted to manage gas sales in Europe, and led the UK subsidiary from 2004 to 2008, when he became head of activities for Eastern Europe.

www.business-review.eu Business Review | March 2017

24 COVER STORY

The software man With about 30 years of entrepreneurial experience, Florin Talpes, co-founder and CEO of Bitdefender, is now one of the most high-profile entrepreneurs in Romania and also well known abroad, having developed a product used by half a billion consumers worldwide.

F

By Anda Sebesi

lorin Talpes made his entrance on

A PROMISING 2017

the software industry in 1990 as a re-

At the beginning of this year Bitdefender

searcher at the Institute for Comput-

announced the takeover of Profil Technol-

ing Technology in Bucharest. He started his

ogy, its partner on the French market, as

first business, Softwin, with just USD 200,

part of the company’s expansion strategy

or the equivalent of two months’ salary at

on the large companies segment. This is the

that time (the early ‘90s). The company was

biggest acquisition conducted by Bitde-

specialized in the development of software

fender and strengthens the firm’s position

applications for French firms. His business

in Europe and at global level.

developed significantly and in 2001, along

According to company representatives,

with his wife, Mariuca Talpes, he founded

the takeover allows Bitdefender to diversify

Bitdefender. The company is now the devel-

its presence on the French market, both on

oper of one of the most effective range of IT

the enterprise as well as on the customer

security solutions certified at international

sector. As a result, a team of 50 sales, mar-

level: each day, Bitdefender technology

keting and customer relations professionals

provides protection for the digital data of

will join the firm.

500 million users worldwide.

Bitdefender entered France in 2001 and

In addition, a recent PwC study ranked

became a strong player on the French mar-

Bitdefender the 17th largest emerging

ket of cyber security solutions, controlling a

market software company in the world by

third of the market of solutions purchased

turnover. The study, conducted in conjunction with International Data Corp., surveyed 30 software firms in emerging markets. The research found that the companies included in the study had certain common characteristics, such as experience and understanding of local markets; common advantages, such as low-cost structures, entrepreneurial culture and demographics; and common challenges, such as distance, funding and trust.

In 2007, the Talpes family sold a minority stake in Bitdefender to a consortium of seven Romanian and American investors led by Horia Manda, a veteran Romanian venture capitalist. Eight years later, the company launched on the American market

Bitdefender is one of the few Romanian companies that have managed to succeed on external markets. The majority of its business focuses on international markets, especially the USA and Western Europe. As the Financial Times notes, in time, Bitdefender became a real model for local startups. Last year the company was named a “visionary” company within Gartner’s “Magic Quadrant” for its terminal protection platforms.

> 500,000 the number of users of Bitdefender technologies worldwide

Bitdefender Box, an innovative hardware

in stores by French customers.

“France is a key market for us in the future. By taking over our in-house business, we will be able to be closer to our partners and clients and we aim to replicate in the enterprise sector our success on the residential consumer market, using the technological superiority of our products in order to take a leadership position,” said Talpes. According to company representatives, Bitdefender has increased its sales to large companies threefold over the past three years. Last year, the company established a local presence on the Italian and Swedish markets as part of its global expansion strategy, and has doubled its network of partners in the past two years.

Last but not least, the Talpes family

solution for the security of the network to

ment that provides protection against danger-

have expressed their interest in listing their

which it is connected. Furthermore, at the

ous applications that target devices connected

company on the stock exchange by 2018.

beginning of this year it launched its second

to the internet, from mobile phones to TVs

The first step will be to attract a new minor-

version of Bitdefender Box, a piece of equip-

and other smart devices.

ity shareholder this year.

www.business-review.eu Business Review | March 2017

COVER STORY 25

Finding real opportunity outside Bucharest With a strong background in the real estate sector, Romanian businessman Ovidiu Sandor is starting a new project in Timisoara, western Romania, which marks his first venture into the residential field.

By Simona Bazavan

M

ixed-use real estate projects

ary and are scheduled for completion this

are a developing trend on the

summer. The Office boasts tenants such

local market, and one which is

as National Instruments, Yonder, 3Pillar

expected to grow even further in the years

Global, HP, Betfair, Lohika Systems, Yardi,

to come. The developer behind one such

Deloitte, Bombardier, Bosch and Mol, and

project is Romanian businessman Ovidiu

by the time it is completed it will house

Sandor. He has a strong background in the

over 5,000 employees.

local real estate market, having previously

In early January the developer an-

developed two of the biggest office schemes

nounced that works on Isho, the new

outside the capital – City Business Centre

project, would soon start. “In order to

in Timisoara and The Office in Cluj-Napoca.

optimize work, the project has been split

Last year he announced that he would start

into three development phases. Works on

work on a new project in the western city of

the first phase will take a year, with the first

Timisoara, this time a mixed residential and

16,500 sqm of new generation office space

office project.

to be delivered by the end of March 2018. At

Sandor has become one of the few big

the same time we will finish the first apart-

local players on the Romanian real estate

ments,” he said earlier this year.

market, yet his venture into real estate

The project in Timisoara will feature

began elsewhere. He inherited the Moda-

some 1,200 apartments as well as 50,000

Tim textile business located in Timisoara,

sqm of office space. Competition has been

which brought with it a good plot of land.

tightening on the main office markets out-

Sandor relocated the factory and used the

side Bucharest, but Sandor says there is still

land as a location for the 43,000 sqm City

room for growth when it comes to quality

Business Centre office park. Work on the

class A office projects. He is betting on a

project began in 2006 and five years later he sold the three existing buildings as well as the two remaining buildings that were under development at that time to real estate investment fund New Europe Property Investments (NEPI) for an estimated EUR 90 million. This marked the beginning of the partnership between the Romanian entrepreneur and NEPI, which later started together The Office, another office project, this time in downtown Cluj-Napoca. Works on the third and last development phase of the 59,000 sqm scheme began last Febru-

The project in Timisoara is being built on a 5.3 ha plot of land that Sandor has consolidated over the past couple of years. It will feature around 1,200 apartments as well as 50,000 sqm of office space and is scheduled for completion by 2020.

well, where he says the market is ready for a different type of living experience. “We want to redefine what quality living means.

I strongly believe that when it comes to a block of flats, this means much more than the quality of its fittings. The quality of life

130

EUR

similar strategy on the residential market as

an apartment offers has to do with everything that surrounds it, from the natural

million

The estimated investment in the Isho project in Timisoara

setting to easy access to work, shopping and entertainment such as restaurants and cultural venues,” he told BR in an interview last year.

www.business-review.eu Business Review | March 2017

26 COVER STORY

Power to the people Large-scale protests have forced the Romanian government to scrap a hastily passed decree, seen by many as nothing more than a thinly veiled attempt to protect corrupt politicians.

By Simona Bazavan

L

ess than one hour after the Ro-

night just like thieves”, “the DNA should come

Iohannis, but the unexpected and mount-

manian government passed an

and pick you up” and “day by day we will be

ing public backlash finally forced the PM,

emergency ordinance on January 31

here”, brandishing witty self-made posters

Sorin Grindeanu, to begrudgingly repeal

that would have partially decriminalized

and even effigies of political figures, jumping

the decree one week later. For now the

low-level government corruption, citizens

to keep warm in the sub-zero temperatures

worst of the political crisis seems to have

started gathering outside the govern-

and at times singing and dancing, Romanians

been weathered, given that Parliament was

ment headquarters in Bucharest’s Victoria

took to the street for weeks in a row. It all

expected to vote through a separate emer-

Square in the middle of the night. Over the

peaked on February 5, when the protests

gency government ordinance that would

coming days they were joined by tens of

are estimated to have brought half a million

cancel the one approved in late January.

thousands more, voicing their discontent

people out in the capital and across dozens of

However, the repeal and the subsequent

and anger over the perceived stymieing of

cities and towns throughout the country. This

resignation of the justice minister, Florin

the fight against corruption, an issue that

marked the largest protests in Romania since

Iordache, did little to stem the demonstra-

has dominated Romanian politics for years.

the fall of communism.

tors’ anger. Many continued to gather in

Specifically, the protesters’ main complaint

While the now infamous Emergency

Piata Victoriei, some calling for the resigna-

was that the decree would have protected

Ordinance No. 13 acted as a catalyst, the rallies

tion of the Grindeanu government, which

many politicians from being prosecuted for

have gone beyond that, conveying outrage

has been in office only since the beginning

corruption, including the head of the ruling

with what many perceive as a self-serving

of the year and whose future now looks

PSD, Liviu Dragnea, who is on trial in an

political class and their old-school political

uncertain. Regardless of how events unfold

abuse of power case. The country’s main

shenanigans more typical of the tumultuous

in the coming weeks and what the political

anti-graft directorate, the DNA, was working

90s than of an EU member state. This makes

outcome of these street protests will be,

this February on over 2,000 cases involving

Romania’s newly discovered civic voice a fac-

once thing has become clear. Romanians,

abuse of office offences and its chief pros-

tor to watch this year.

and the younger generation in particular,

The government has blamed the protests

can overcome their apathy with the politi-

such changes to the Criminal Code could

on poor communication, members of the pub-

cal elite and speak out against breaches of

wipe out a large share of these cases. Chant-

lic allowing themselves to be manipulated and

rule of law. And this is welcome news for

ing their discontent with slogans such as “at

even the interference of the president, Klaus

any functional democracy.

ecutor, Laura Codruta Kovesi, warned that

www.business-review.eu Business Review | March 2017

28 REAL ESTATE

Logistics and industrial space deliveries to hit post-crisis high in 2017 Some 500,000 sqm of logistics and industrial space are forecast to be delivered this year in Romania, which is up by 40 percent y-o-y and the highest post-crisis level, according to real estate consultancy Colliers International.

nection to Hungary and the rest of Europe and will also improve connections between the big cities and therefore labor mobility,” Duica told BR. There is high interest in the region of Moldova as well, as there are manufacturers for which low labor costs are more

By Simona Bazavan

important, he added.

As for retail players, Duica doesn’t expect any major changes in 2017. Altex and Flanco remain the most important offline retailers, while online eMAG, FashionDays, evoMAG and Cell.ro are driving up demand. There are also regional players taking an interest in the local market, but for now they are only analyzing it, he went on. “If we consider the largest retailers on this segment – Amazon and Alibaba – they haven’t yet set up a logistics center or a warehouse in Romania, even though their sales on the local market are growing. Nonetheless, such companies are interested in the region and Alibaba, for example, is considering setting up distribution space in Bulgaria,” Duica pointed out.

In the long run, online retail in particular Laurentiu Duica, Colliers International

is forecast to become the main growth engine for this real estate segment over the next five

D

This is especially the case as this year

tics space in Bucharest dropped to 2 percent

strong throughout 2017, thus fueling the

could see new players from the manufactur-

in 2016 from 5 percent the previous year, and

development of new such projects, says the

ing sector entering the local market, given

remained around 5 percent for the rest of the

consultancy.

that in 2016 several were looking at the

country, according to Colliers International.

years, which in turn will lead to a doubling of

emand for new logistics and indus-

boost their presence, but there is growing

trial space from FMCG companies

interest in regional cities as well.

and online retailers is set to remain

the existing stock, he predicted.

The vacancy rate for industrial and logis-

Balkans region and also given the structural

Despite the high volume of new deliveries,

we estimate that the current logistics and

changes to the local economy, added Colliers

consultancy representatives don’t expect the

industrial space stock of 3 million sqm will

International representatives. Not only is Bu-

vacancy rate to fluctuate much through to

increase by 500,000 sqm in 2017 (about 17

charest targeted by such potential newcom-

yearend, arguing that only a small share of

percent), marking the highest level of post-

ers, so too are secondary and tertiary cities

this year’s stock, meaning about 60,000 sqm,

crisis deliveries. About 40 percent of the new

with a well-developed retail scene and which

will be speculative developments.

deliveries will come from FMCG companies,

also benefit from infrastructure develop-

20 percent from online retailers and 10 per-

ments.

“Given the last three years’ high demand,

cent from IT and electronic warehouses,” said

“Western Romania remains extremely

Laurentiu Duica, associate director of the in-

attractive to auto manufacturers, with one of

dustrial division within Colliers International.

the main reasons for that being the invest-

About 80 percent of this year’s new stock

ments in infrastructure set to be carried out

will be delivered in Bucharest alone, where

this year. The 180 km of highway which will

players such as WDP, P3 and CTP are due to

be delivered in 2017 will ensure a faster con-

65

percent

The share of built-to-suit projects in this year’s new stock

www.business-review.eu Business Review | March 2017

30 LIFE INSURANCE

Insurers seek better times Even though insurers have struggled to increase the penetration of life insurance policies on the local market, Romania is still lagging behind its European peers in this area.

Investments in long-term financial educational programs, combined with some fiscal facilities, could boost Romanians’ appetite for insuring their future.

By Anda Sebesi insurers on the market generated RON 1.09 billion of gross written premiums last year. In addition, the top two players, NN Asigurari de Viata (top) and BCR Asigurari de Viata Vienna Insurance Group (second) posted cumulated gross written premiums of about RON 619 million and had a combined market share of some 53 percent in 2016.

Market analysis conducted by Metropolitan Life last year showed that one extremely dynamic segment is individual customers concerned with their own and their family’s protection. “Consumption increases at important moments of their lives. We have Financial education plays a significant role as consumer needs are constantly changing

T

he Romanian life insurance market is

identified an increased appetite from customers for life insurance when building a family, having children, buying a house or taking out

Soncutean.

a loan, aspects which are important for the

still underdeveloped despite signifi-

According to data provided by the

entire family. Whether it’s about a mortgage

cant steps in recent years. The lack of

Financial Supervisory Authority (ASF),

or a personal consumer loan, it is a pretty big

fiscal facilities to foster growth, limited dis-

gross written premiums for the life insur-

responsibility, and for some people, it may

posable incomes, and the absence of financial

ance business grew by 2 percent in the first

represent a significant burden that would be

education and a proper tax regime kept the

nine months of 2016, compared to the same

hard for the rest of the family to bear,” says

increase in this segment marginal last year.

period last year, to stand at RON 1.17 billion.

Bunea. She adds that the SME segment is

Growth was driven mainly by traditional

very dynamic and the company has identified

which is dominated by the life insurance

life products, which registered an increase

some development opportunities in this area.

segment – about 61 percent according to

of 12.8 percent, while unit-linked products

“Over the past two years, our portfolio has

Insurance Europe, in 2014 – in Romania the

decreased by 20.6 percent. According to the

increased by a few hundred companies, of

life segment makes up only about 17 percent

report, the two classes of insurance account

which several dozen are SMEs,” she adds.

of gross written premiums, with the rest of

for 95 percent of the total gross premiums for

the market being dominated by P&C seg-

life insurance. “There are several areas where

EDUCATION IS KEY

ments, particularly motor products,” says

further improvements can be made within

Bunea also highlights the importance of

Virgil Soncutean, general manager of Allianz

the market, areas where we will also focus

financial education as the life insurance seg-

Tiriac Asigurari. According to him, the growth

our future efforts. There is still a low level of

ment is developing in an environment where

posted last year on the life insurance segment

understanding of the life insurance category

consumer needs are constantly changing.

was driven by traditional life products and

among Romanians, who continue to have

“That requires organizations in this industry

individual and group policies. “However, the

the mindset that it is difficult and expensive

to place increased importance on financial

low or negative interest rates put additional

to buy a life insurance policy,” says Emilia

education. It is a topic which we have put

pressure on traditional products, while whet-

Bunea, CEO at Metropolitan Life.

on the table this year as well,” says Bunea.

“Unlike the European insurance market,

ting the appetite for life products with an investment component (unit-linked),” adds

Across the entire life insurance market, according to www.1asig.ro data, the top ten life

According to her, in Romania, financial education starts pretty late in a person’s life.

www.business-review.eu Business Review | March 2017

32 LIFE INSURANCE

For this reason, many young adults have problems in managing their own resources, largely due to the lack of financial information needed.

“Besides this characterization of the life insurance market, there is the digitalization process that all market players must keep

in the first nine months of 2016, versus the

in Romania will remain significantly weaker

up with. It is an area where we have already

same period of 2015, says Soncutean.

than in other major European states. Total

started investing in 2017, and we are look-

gross life premiums reached just 0.2 percent

ing forward to seeing how it is received by

ROMANIA LAGS BEHIND ITS PEERS

of GDP in 2016, compared with the European

customers,” she adds.

Compared to other European countries, life

average of around 4 percent and lagging

The Life Changer program, in which the in-

insurance is not a strong category in Roma-

behind other major Central and Eastern Eu-

surer has been involved alongside the Junior

nia, with a relatively low insurance density.

ropean countries. As the Romania Insurance

Achievement Association, is an example of an

According to the European Insurance Report,

Report Q4 2016 (CEE) shows, in countries like

action taken by Metropolitan Life in support-

in 2015 Europeans spent an average of EUR

the Czech Republic, Hungary and Slovakia,

ing financial education. In 2016, more than

1,200 per capita on life insurance policies.

this indicator is still above 1 percent of GDP.

3,000 grade-school students from 19 Roma-

While in Romania the life insurance density

“However, the life segment still offers great

nian cities received support towards learning

was around EUR 20 per capita, people from

potential for growth as the average insur-

elementary financial concepts, in order to

Finland, Switzerland and Lichtenstein spent

ance premium is below an average motor

develop the necessary financial skills for adult

more than EUR 3,500 per year on insuring

insurance one (MTPL or Motor Hull),” says

life. “We will continue to invest in this initia-

their lives.

Soncutean. He adds that the group insurance

tive this year, when 4,000 pupils will benefit

“The financial education sector in Ro-

from financial literacy workshops in Bucha-

mania is not very well developed; hence the

as companies buy such products in order to

rest as well as other Romanian cities,” adds

underdeveloped [insurance] market, but this

retain their employees.

the Metropolitan Life representative.

can also be an opportunity. The Financial Su-

Elsewhere, Bunea of Metropolitan Life

pervisory Authority (ASF), the National Bank,

says that it is likely that Romanians’ appetite

MEDICAL DISORDERS BOOST THE MARKET

other important players on the market, all

for insurance will increase on the medium

As Soncutean of Allianz Tiriac says, serious

of us are making sustained efforts in this re-

term, in addition to the slight but steady in-

medical disorders have seen an alarming

gard,” says Bunea. She adds that this year the

crease in the life insurance market. “Whether

increase among the Romanian population,

company will also continue its efforts to show

it’s about policies that cover basic risks, with

boosting demand for policies covering such

Romanians that insurance is neither difficult

a cost of less than RON 30 per month, easily

risks. “For example, the sale of Allianz-Tiriac

to get, understand or buy, nor expensive.

accessible to the low-income segment, or

segment is also expected to grow in the future

about a more complex protection product

‘Best Doctors’ Critical Illness Rider, which covers treatment for illnesses and medical

LOOKING AHEAD

or a unit-linked insurance with a protection

procedures in the best clinics worldwide,

“This year, we hope to witness some market

component attached, we expect the benefits

registered results beyond our expectation.

maturation, hopefully reflected in first quar-

of these products to be better understood by

In the first nine months of the previous year

ter figures. Despite the changes in 2016, such

Romanians,” she says. However, she warns

alone, Allianz-Tiriac sold more than 2,000

as switching to Solvency II, the bankruptcy of

that customers’ behavior will not change sig-

such policies,” he says. There is also strong in-

several insurance companies and Romanians’

nificantly on the short term, but that rather,

terest in taking out additional riders attached

pretty low confidence level in life insurance,

over time, Romanians’ perception of insur-

to life insurance policies, covering accidents,

the figures are encouraging,” says the CEO of

ance, generally, will change. “On the medium

sickness and surgical interventions requiring

Metropolitan Life.

term, the need for financial education among

hospitalization. Gross written premiums gen-

According to Business Monitor Interna-

erated by these riders increased by 36 percent

tional research, life insurance penetration

young people must remain a priority for all of us,” she concludes.

www.business-review.eu Business Review | March 2017

34 BR Awards

Business Review Awards – praising the stars of the Romanian economy Over 100 nominees and 43 finalists will be competing in ten categories at this year’s Business Review Awards, BR magazine’s flagship event that recognizes the outstanding achievements of the business community.

By Ovidiu Posirca Craioveanu, president of the jury, who is also the co-founder of Impact Hub Bucharest. In 2015, Impact Hub Bucharest won in the Best Start-up Supporter Category, and last year the organization was among the technology hubs that received a special distinction for supporting the Romanian start-up ecosystem.

With Business Review having backed the business community in Romania for 18 years,

T

we have witnessed the impressive evolution of entrepreneurs and companies that have

hese are the main figures from the

recorded in the Best Community Develop-

12th edition of our competition, which

ment Initiative, where both multinationals

awards the most dynamic entrepre-

been garlanded in the special gala.

Last year’s winner in the Innovation in

and Romanian companies presented the best

Technology category, Vector Watch, the

neurs, executives and companies that have

programs through which they helped their

smartwatch maker start-up, was sold last

continued to innovate and bring new prod-

communities last year.

year to American wearables giant FitBit. Ban-

ucts and services onto the market.

More companies with Romanian capital

ca Transilvania, a winner in the Best SMEs

And the power of the independent jury is

have made it into the competition than last

Financing Line Program and Best Startup

one of the Business Review awards’ key as-

year, being put forward for consideration

Supporter categories, became the second big-

sets. Every year, some of the previous years’

either by the magazine and the jury, or

gest lender on the Romanian market in 2016.

winners have the chance to join the team of

through self-nomination.

Meanwhile, the CEO of BT, Omer Tetik, was

jurors that carefully assesses and determines the winners in each category.

The judging process included two stages.

named Business Leader of the Year.

Initially, Business Review magazine came

Online retailer eMag, which won in the

up with a list of potential nominees which

Online Strategy for Business Development

WHAT’S DIFFERENT THIS YEAR

received feedback from the jury to find more

category last year, has continued its aggres-

Business Review works each year with the

people and companies that were media shy.

sive expansion strategy and is planning to

jury to make sure that the criteria and catego-

In the second meeting, jurors selected the

reach EUR 1 billion in turnover this year.

ries closely reflect the latest developments on

nominees that would make it onto the short-

the local and international markets.

list and the winners were chosen following

year for Best International Expansion, has

an individual voting process at the end of the

continued to grow its business. CEO Dan

discussions.

Isai, who was named Entrepreneur of the

This year, a new category called Best Start-up has been included to recognize the

Year, has launched a fast-food chain called

massive growth of the local entrepreneurial sector. Jurors assessed 13 start-ups in this category, out of which five made it onto the

Salad Box, the food chain, awarded last

WINNERS’ STORIES Austrian lender BCR, which was awarded

Pep&Pepper, located mainly in shopping malls, and the people behind Salad Box are also looking to launch a chain of coffee shops.

shortlist. The start-ups that are competing

in the Best Turnaround Category last year,

are no older than three years and work on

was represented this year on the jury by

products or services that are creating new in-

Anca Rarau, the bank’s marketing director.

the economic potential of Romania is still

dustries or that have the potential to compete

Last year, BCR reported an increased lending

present, an idea that has been promoted

at a global level.

rate and a sharp reduction in its portfolio of

throughout the years by both local and for-

non-performing loans. Then, there is Oana

eign investors.

The biggest number of candidates (15) was

They and many others have proven that

www.business-review.eu Business Review | March 2017

Best Community Development Initiative

BR Awards 35

ENGIE ROMANIA – ACQUISITION OF VENTILATION MACHINES

Innovation In Technology

Following the tragic fire in the Colectiv nightclub in 2015, Engie Romania, alongside Daruieste Viata, acquired 11 non-invasive ventilation machines and 3 invasive ventilation machines for some of the biggest medical centers in Romania following an investment of EUR 200,000: the Hospital of Pneumophtisiology in Constanta, the Pediatric Hospital

JUDGING CRITERIA: • Proven social impact of the business/initiative (community impact) • Developing long-term programs or projects for local communities (long-term commitment to the local community) • Initiatives coming from companies that meet a real need of the community (e.g. education, social intervention, health, environment, technology) • Transparency toward the local community by publishing annual sustainability reports (GRI 4).

Category supported by

in Brasov, Marius Nasa Pneumophtisiology Institute and Grigore Alexandrescu Pediatric Hospital. The four hospitals serve over 1,700 patients annually.

KAUFLAND – HOSPICE CASA SPERANTEI Romania, Hospice Casa Sperantei was able to

BITDEFENDER – HYPERVISOR INTROSPECTION

set up the first center in Bucharest providing

Romanian security software company BitDe-

integrated palliative care services (including

fender launched Hypervisor Introspection

medical, nursing, psychosocial-emotional,

(HVI), a new tool that has been under devel-

and educational support), in a whole range

opment for five years. HVI detects and blocks

of settings (inpatient unit, outpatient clinic,

threats even without knowing the vulner-

day center, and hospice school), through a

abilities used by the hackers. Along with the

multidisciplinary team. Some 75 percent of the

innovative security software portfolio, HVI

total costs (about EUR 460,000) was covered by

technology is expected to turn the company

Kaufland Romania.

into the next tech unicorn from Central and

In 2016, with financial support from Kaufland

BCR - BURSA BINELUI Bursa Binelui is the only donations platform without bank charges. It brings together

JUDGING CRITERIA: • Innovation and research-driven orientation of the strategy implemented • Investment made, amount and performance against other markets where the company is present

Eastern Europe by 2018.

OMV PETROM – IDEI DIN TARA LUI ANDREI

FLASHNET – INTELILIGHT

donors and organizations that implement

Idei din Tara lui Andrei is a national competi-

Romanian technology R&D company

projects in their communities and need

tion through which OMV Petrom supports

Flashnet launched inteliLIGHT, the street

support to contribute to the development

the sustainable development of communities

lightning management solution and smart

of the community through their programs.

in Romania. In 2016, the program focused on

city platform, with more than 100 pilot proj-

The objectives set for 2016 were to increase

vocational education and environment. The

ects installed in more than 40 countries. The

the number of NGOs and amount of money

main objective of the competition was to find

company’s solution is the first in the world

donated on the platform. In 2016, EUR 107,000

solutions for issues in those two domains and

that is communication technology-agnostic.

was raised and 160 new NGOs were regis-

to finance the most promising projects up to

Last year, Flashnet became a supplier for

tered.

a total of EUR 150,000. Over 170 projects were

global companies such as Cisco, Ericsson and

submitted for the competition.

E.On. The Romanian firm has partnered with

e-MAG FOUNDATION – HAI LA OLIMPIADA

large international groups to work on energy

SECOM – GRADINA CU REMEDII

management solutions through the Internet of Things (IoT).

The project is dedicated to teachers and

The initiative consists of rebuilding sector of

students with excellent results in their field

useful medicinal plants in the Botanical Gar-

of study. Starting as a supporter of the Roma-

den as well as the improvement of the current

nian Olympic teams in mathematics, physics

collection. In this way, the company aimed to

Mira Rehab, the Romanian med-tech compa-

and IT, the project now has its own network

raise awareness of the role of plants in health

ny, developed Medical Interactive Recovery

of 12 Olympic training centers across Ro-

by arranging a space with dozens of medicinal

Assistant (Mira), a modern tool designed to

mania. In 2016, the number of students that

plant species, all open to the public. In 2016,

help therapists improve their practice while

benefited from educational activities in the

about 60 percent of the total 1,800 sqm of the

helping patients get better faster at the clinic

centers increased from 1,442 to 3,286.

“Gradina cu remedii” sector was completed.

and at home. Last year, the applicability of

MIRA REHAB – MIRA

www.business-review.eu Business Review | March 2017

36 BR Awards

Mira was extended with cognitive exercises

Ponderas will become the biggest hospital in

and the company has received two grants

the become the biggest hospital in the

Best Start-up

that will cover its R&D costs for the next three years. Last year, the firm’s turnover grew by 100 percent versus 2015.

CHIVAS REGAL – THE VENTURE The Venture is Chivas Regal’s global search to find and support the next generation of

SOFTELLIGENCE – FINTECH OS

start-ups and social entrepreneurs. Since its

Romanian IT company Softelligence rolled

launch in Romania in 2015, over 75 local social

out the FinTech OS platform in 2016, after

enterprises have applied for a grant. In 2016,

having developed and implemented the

over 90 local social businesses entered The

solution in stealth mode for close to one

Venture Romania. The amount invested on

year. At the end of last year, the platform was

the Romanian market so far is EUR 100,000.

handling over 2 million monthly transactions. dent and ING Bank are already using FinTech

IMPACT HUB & ING BANK – STARTARIUM

OS. The platform provides the digitization of

Startarium is an online platform created with

the main business operations of players in

the aim of offering Romanian entrepreneurs a

the financial services sector.

place where they can learn how to turn their

Large international banks such as NN, Provi-

JUDGING CRITERIA: • Profile and scope of the start-up • Innovation factor and disruption potential • Growth potential and impact on the overall start-up scene • Recognitions and other business achievements

5 TO GO

idea into a successful business. From the 116

Best Start-Up Supporter

eligible applicants, 78 start-ups were selected

5 to Go, founded by Romanian entrepreneur

for the first round, out of which ten made the

Radu Savopol, is the first coffee shop chain

final. Four Romanian start-ups were awarded

to have implemented the fixed-price concept

prizes with a total value of EUR 110,000.

in the Romanian hotels, restaurants and cafes (HoReCa) industry. With 37 existing

SPHERIK ACCELERATOR

coffee shops and over 100 franchise requests

Spherik started in 2014 with the objective of

pending, 5 To Go posted a 300 percent growth

creating an ecosystem of value generation by

in turnover from 2015 to 2016. Last year, the

pooling major stakeholders from universities,

group exceeded the EUR 1 million milestone

private companies and local administration,

in turnover.

and a Spherik Student program. The objective

JUDGING CRITERIA: • To what extent does the project/service support the activity of start-ups. The added value for the entrepreneur • Number of start-ups/ individuals supported • Resources and strategy employed to support start-up activity (infrastructure, consultancy services) • The ease of access to the solution/service/product for start-ups.

GET PONY

of the Spherik accelerator program 2015-2016 was to accelerate the process that drives

Pony Car Sharing was launched in Cluj-

start-ups through the exploratory process of

Napoca at the beginning of November 2015

validating their product, customers and busi-

with a fleet of 50 cars. Last year, the company

ness model, and preparing them for scale up.

expanded the fleet to 85 cars. Currently, there

The Spherik program has supported start-ups

are approximately 5,500 monthly trips and

such as Planable, Approd, HalftonePro, City

over 3,500 active users. Pony received private

365, Printivate, and EXIGEapp.

investments from Romanian entrepreneurs which amounted to approximately EUR 1

TECH LOUNGE – INNOVATION LABS

million.

Innovation Labs serves to open Romanian technical education to the entrepreneurial

BUCHAREST STOCK EXCHANGE AERO

IUTTA WORLDWIDE

ecosystem. In 2016, Innovation Labs orga-

Founded in 2013, Iutta is an accessories brand

nized four Hackathons, engaging 90 teams

inspired by Romanian contemporary design

Last year the company was involved in

and 125 ideas in Bucharest, Cluj, Sibiu and

traditions. Last year, the brand was launched

significant transactions that made it one of

Timișoara. A total of 345 students and 100

on the UK market and recorded over EUR

the most dynamic players in the sector. The

mentors participated in the Hackathon and

100,000 in turnover. Iutta was selected as one

takeover of Bucharest-based Ponderas Hos-

the mentorship program. Some 49 start-up

of the top 20 start-ups in the 60 Days Chal-

pital, a medical unit specialized in metabolic

teams have been selected to continue in the

lenge business accelerator.

and bariatric surgery, was by far the most

three-month mentorship program, and 31

significant move for Regina Maria in 2016. Ac-

teams pitched their prototypes and products

cording to the CEO, through this acquisition,

at Demo Day.

REFLEX ReFlex became an international start-up

www.business-review.eu Business Review | March 2017

in 2016 after being funded by an Austrian company, and was accepted for European

BR Awards 37

Best Employment Initiative

BCR - EXPERIENTIA BANKCAMP BCR says it initiated the Experientia

funding. Its innovation lies in providing home

BankCamp – Managers for Romania project

recovery as a complete service for physio-

out of the need to build a community of

therapy clinics and offering patients a safe,

retail network managers that encourages

cost-efficient and time-saving method of

entrepreneurship, inspiration and exchanges

rehabilitation. The company says it can sell a

best practices, as well as from the desire to

low-cost solution able to deliver 80 percent of

be more present in community life. As part

the technology used in universities and elite

of this live project management program,

sports teams, and acquired 0.5 percent of the physiotherapy market in Europe in the first two years, equivalent to more than USD 40 million in business potential.

YELLOW MENU Launched in September 2015, Yellow allows its users to order healthy and affordable chef-cooked meals and have them delivered to their home or office. The Yellow Menu currently provides food for approximately 500 people in the business districts in the center

JUDGING CRITERIA: • Innovation and effectiveness of the program • Impact on the company business or society overall • Net personnel increase vs. the industry net (percentage also) • Industry growth and its importance for the Romanian economy • Qualitative reviews: employee feedback, employer branding efforts, NPS scores, and any other internal KPIs (engagement, retention, personnel turnover)

unique customers and over 50,000 orders de-

ers managed to raise funds for two different humanitarian causes.

MEGA IMAGE – PROFILING PROJECT The goal of Mega Image’s 2016 profiling project was the alignment of store managers’ skills with an ideal performance standard. As part of this project, 230 store managers were evaluated through personalized reports emphasizing the main areas of development and the strong points of each participant. This also enabled the retailer to pool a number of

and north of Bucharest. In 2016, the company recorded revenues of EUR 600,000, over 5,000

after three days of training the 120 manag-

Category supported by

high potential employees to be promoted to district managers in 2017.

livered. The initial investment in Yellow Menu investment came from shareholders, with the start-up raising around EUR 300,000.

WEB DIGITAL – FREE MONDAY WebDigital, a specialized pay-per-click mar-

First Jury meeting

Second Jury meeting

Nomination stage

Debates before the final vote

www.business-review.eu Business Review | March 2017

38 BR Awards

keting agency, has been working since last

Qualitance works with companies to help

August on a four-day-week schedule known as

them innovate and develop revolutionary

“Free Monday”. The objective was to ensure

new products and services through Design

better time management in all departments,

Thinking and Rapid Prototyping.

to increase daily productivity to match the

Deal Of The Year

Last year, the company launched the

same level as a five-day work schedule and to

innovation business line and its headcount

have a healthier and happier team. WebDigi-

rose from 144 to 200.

tal says the result has been more working hours reported per day without overtime and a skyrocketing net promoter score.

LAURENTIU BANESCU AND ALEXANDRU GEAMANU – BERE ZAGANU The makers of Romanian craft beer Zaganu

Entreprenuer Of The Year

expanded their operations last year, launching three new beers and pushing craft beer in new distribution channels. Zaganu hired four new people from the local community, taking

JUDGING CRITERIA: • Value of the transaction • Impact within the industry/ local business scene and economy as a whole • Innovative elements characteristic to the transaction.

the total headcount to 19. The overall growth of the business was 67 percent year-on-year

Category supported by

and the total sold capacity stood at 4,000 hl last year. The founders of Zaganu have reinvested all the profits to increase capacity and efficiency.

JUDGING CRITERIA: • Development of the business over the years • Unique characteristics of the business • Results achieved against investment and the overall industry • Ethics and values exemplified in the business • The added value of his/her business on the market

DANIEL TRUICA – VOLA.RO Daniel Truica, 38, founded the online travel

RADU SAVOPOL – 5 TO GO Radu Savopol has over 15 years of experientrepreneurial project is coffee shop chain

NORIEL FOR ITS ACQUISITION BY ENTERPRISE INVESTORS

5 To Go. The company recorded a turnover of

Noriel Group was acquired last year by En-

EUR 1.2 million last year versus EUR 350,000

terprise Investors, one of the largest private

the previous year. The group expanded its

equity firms in Central and Eastern Europe,

operations from 10 to 35 locations and inked

for EUR 24 million. The sellers are Noriel’s

new partnerships with Romanian distribu-

founding entrepreneurs, and Balkan Acces-

tors for private labels. It also opened four

sion Fund, a private equity fund. As part of

new consumer markets outside Bucharest in

the deal, Enterprise Investors provided EUR

Cluj, Craiova, Pitesti and Constanta.

2 million of funding to support the further

ence in the HoReCA field and his most recent

development of the company. Noriel’s sales

agency Vola.ro in 2007. Today, the company erates in three markets outside the country:

TEODOR BLIDARUS – SOFTELLIGENCE

Poland, Vietnam and Ukraine. Last year, the

Boasting more than 20 years of experience in

agency launched a new website, rolled out

the IT&C sector, Teodor Blidarus is manag-

the biggest Black Friday campaign in the

ing partner of Softelligence, the provider of

tourism sector, and recorded over EUR 1 mil-

business software services. Blidarus is also

ENTERPRISE INVESTORS FOR SELLING PROFI TO MID EUROPA PARTNERS

lion in confirmed bookings.

the president of the Employers’ Association

Polish Enterprise Fund VI (PEF VI), a private

of the Software and Services Industry (ANIS).

equity fund managed by Enterprise Inves-

International projects generated 60 percent

tors, signed an agreement last year to sell

of the company’s turnover last year. The

Profi Rom Food, the largest supermarket

emerging FinTech segment accounted for 30

chain in Romania, to Mid Europa Partners

percent of the firm’s turnover.

for EUR 533 million. This is the largest deal

has over 100 employees in Romania and op-

Vola.ro posted a 2016 turnover of EUR 42 million.

IOAN IACOB – QUALITANCE Ioan Iacob launched Qualitance ten years ago with Radu Constantinescu. Today, the

In 2016, Softelligence grew its headcount

went up by 20 percent y-o-y in 2016 to reach EUR 34 million.

ever completed by a private equity fund in

company has a production level software

by 50 percent to 200, and the company

Romania and the largest retail deal in the

delivery center in Bucharest and two innova-

opened a new office in Craiova. Another of-

country’s history, according to company

tion offices in Silicon Valley and Sydney.

fice opening was planned in Constanta.

data.

www.business-review.eu Business Review | March 2017

40 BR Awards

VECTOR WATCH/GECAD VENTURES FOR SELLING TO FITBIT

BLUE AIR

product every four seconds. The company has over 3,000 employees and operates in

Romanian airline Blue Air posted strong

Gecad Ventures sold its majority stake in

Romania, Bulgaria, Hungary and Poland

growth in 2016. Its turnover was up by 50

Vector Watch to Fitbit at the end of 2016. The

through brands such as eMAG, Fashion Days

percent to EUR 300 million, the number of

terms of the transaction are confidential.

and PC Garage. Last year, the retailer re-

passengers increased from 2 million to 3.6

Fitbit acquired some of its assets, specifi-

corded a 40 percent increase due to constant

million and it added nine aircraft to its fleet,

cally, Vector Watch’s intellectual property

investments in technology, marketplace and

which now consists of 24 planes, as well as

(software platform) and its team. For Gecad

people.

30 new routes. Blue Air also became the largest Romanian airline in 2016, according to

Ventures, Vector Watch’s acquisition marked another global exit for the VC. The terms of the transaction are confidential.

REGINA MARIA

its data, and this three years after changing

Private healthcare services provider Regina

ownership and undergoing financial difficul-

Maria remained an active dealmaker last

ties.

year, making several purchases of local medi-

Excellence In Business

JUDGING CRITERIA: • The strategy for development in the past few years • Business growth over the previous year • Unique endeavors to support the local business community • Sustainable development strategy Top market position • Exceptional business growth compared with peers Category supported by

cal centers, including Ponderas Hospital. The

GOSSELIN MOBILITY

company recorded a turnover of over EUR

After Gosselin Mobility was considering

90 million in 2016 and for this year targets a

closing in 2014 due to financial difficulties,

business increase of 15 percent to EUR 110

the company managed to make a strong

million. Last year, the company started sell-

comeback by returning to profit in 2015 and

ing medical subscriptions for SMEs, start-ups

more than tripling its turnover by the end

and the liberal professions. As it celebrated

of 2016. This was made possible by develop-

20 years of presence on the local market,

ing brand awareness and local expertise, by

Regia Maria launched a special study on the

implementing strict KPIs and SLAs to ensure

health of employees in Romania.

high-quality services, decentralization and investment in sales, marketing and commu-

VOLA.RO

nication, according to company data.

Online travel agency Vola.ro has over 100 employees in Romania and operates on three

IMPACT DEVELOPER & CONTRACTOR

markets outside Romania in Poland (fru.pl),

Impact Developer & Contractor initiated a

Vietnam (avia.vn) and Ukraine (avio.ua). Last

comeback strategy in 2014 by launching the

year, the company’s turnover exceeded EUR

second phase of its Greenfield Baneasa resi-

42 million. Reservations for packages (city

dential project in Bucharest. In 2016 the Ro-

breaks and vacations) rose by 70 percent

manian developer increased its turnover by

year-on-year. The number of smart connec-

30 percent y-o-y to about EUR 33 million and

tion flights was up by 25 percent in 2016.

started works on yet another development phase of Greenfield Baneasa, consisting of almost 900 new apartments and requiring a

Best Comeback Strategy AUTONOM

EUR 45 million investment. As a result, sales reached the highest level in the company’s 25-year history with 433 contracts and 130 pre-sale contracts.

Romanian Autonom Group, specialized in car rentals and corporate auto transfers, re-

SOFTELLIGENCE

corded a turnover increase of 33 percent last year, posting double-digit growth rates for

Last year was the most successful in the ten-

the 11th year in a row. At present, the group

year history of Softelligence, a business soft-

employs 240 people. Every year, Autonom

ware services provider. The company posted

incubates news business ideas and rolls out

a EUR 3.5 million turnover, up by 70 percent

pilot projects in order to validate business opportunities.

EMAG eMAG, the biggest online retailer in Romania, controlled by South African Naspers, sells a

JUDGING CRITERIA: • Strategy employed to achieve the turnaround • Amount of time necessary to achieve it • Financial and non-financial results of the company before and after

y-o-y. This was made possible by expanding in the CEE region and developing Softelligence intellectual property. The company also increased its number of employees by half in 2016 to reach 200 and opened a new office in Craiova.

www.business-review.eu Business Review | March 2017

Business Leader Of The Year

BR Awards 41

largest tourism and travel groups in the coun-

EUR 4.2 million turnover in 2016, for more

try, Eurolines Romania. The group is made up

than six years. She describes herself as pas-

of 21 companies whose combined turnover

sionate about business and management

was up by 13 percent last year to EUR 125

models, people, sustainable companies and

million. He is also a member of organizations

new ideas. She is also a member of the board

such as the Romanian Business Leaders Foun-

and expert professor at the Entrepreneurship

dation, Coalitia pentru Dezvoltarea Romaniei

Academy, sales psychology professor at Alter-

and the Administrative Council of AHK.

native University, member of the board of the Dutch-Romanian Chamber of Commerce and

JUDGING CRITERIA: • The main business achievements of the nominated person’s past year of tenure • Results of any projects/initiatives (not necessarily connected to the core business) done to support the overall business environment in Romania • Evidence of the nominee’s achievements and role as a leader within the community Category supported by

FELIX PATRASCANU – FAN COURIER

a member of the community board at Telus International.

Felix Patrascanu is the founding manager and managing partner of Fan Courier, which was set up in 1998. The company became mar-

RADU GEORGESCU – GECAD VENTURES

ket leader in 2006 and is expected to close

Radu Georgescu is currently serving as found-

2016 with a 29 percent turnover increase.

ing partner at Gecad Ventures. For more

Over the years, he has been actively involved

than 20 years he has set up and developed

in business community projects, including

companies mostly in areas such as software,

Repatriot, a project incentivizing Romanians

internet and e-commerce. Some of the most

living abroad to return and set up businesses

successful exits that Georgescu managed

locally, the “I want to be an entrepreneur”

include the sales of Vector Watch to Fitbit in

project and Mentoria.

2016, Avangate to Francisco Partners in 2013, ePayment to Naspers in 2010 and RAV anti-

ILINCA PAUN – COLLIERS INTERNATIONAL

DRAGOS ANASTASIU – EUROLINES ROMANIA

Ilinca Paun has led Colliers International

Dragos Anastasiu is the founder of one of the

Romania, a real estate consultancy with a

virus to Microsoft in 2003. He is also board director and adviser to a number of start-ups and mature technology companies.

42 MEDIA

www.business-review.eu Business Review | March 2017

Photojournalism: snaps that crackle and pop For a while now, photojournalism has been big news. Various worldwide photo competitions and the famous World Press Photo exhibition generate important conversations, for the public as well as for photographers. This curation of images allows us to see what we are, and what we want to become as world citizens. When a picture tells a story that reflects an issue we often neglect, it can become news. BR sat down with Bogdan Dobre, founder of Documentaria.ro, an online photojournalism platform that has already attracted the crème de la crème of Romanian snappers, to learn more.

By Oana Vasiliu

www.business-review.eu Business Review | March 2017

MEDIA 43

What is Documentaria and how did you start it?

versities abroad) and Valeriu Nicolae (Council

year to put just as many “bricks in this build-

of Europe) and journalists who understand

ing”.

Documentaria began in December 2016 as a

their topics, such as Sorana Stanescu of Decat

platform for visual journalism. The project

o Revista; Vlad Odobescu, winner of several

publishes a series of photos from the best Ro-

scholarships and prizes in journalism, with

manian photojournalists, supported by drawn

articles published in USA Today, Washington

data (infographics) and texts by journalists

Times and Global Post; and Victor Cozmei and

We’re seeing more and more shocking photos nowadays. Would you consider the problem of image manipulation an issue of ethics?

and specialists from European institutions

Dan Popa from the Romanian news website

I think it depends on our propose. If we just

and universities on our website, Facebook

Hotnews.

need entertainment, to be shocked or excited,

and Instagram pages. In a few words, it is content that seeks to meet high quality stan-

we can produce and consume altered photos, either by the photographer on the spot or

with correct information, shown in documen-

How do you comment upon the current situation of the Romanian press in terms of photos and photojournalism?

taries that can reach many people, regardless

I’m not a specialist, but it seems that the en-

those images that are less distorted. For this

of their education or social status. In addition,

tire journalism scene is suffering in Romania

reason, it is important that professionals be

we try to make it visual through visuals,

(and beyond) and photojournalism is no ex-

supported in this area; they are the landmarks

through the language that we all speak, using

ception. In an attempt to survive, traditional

of ethics, which are greatly needed.

empathy and objectivity, without judging

media focus on sensationalism and, too often,

or bitterness. Like any idea, Documentaria

reality is reconstructed in the interests of

needed time and help to take shape. After

the time and without research or objectivity,

more than half a year of searching, I found

even though these are essential attributes in

support from the European Commission

the work of every photojournalist. There are

In your opinion, where is the line between how reality is photographed and Photoshop? Who takes responsibility for it? The photographer or the editorial staff?

representation in Romania. They helped us

several initiatives in online journalism trying

The altered photos were in recent years a

to disseminate information from the country

to remedy this, but resources are limited. The

series for the post-truth era in which it is said

report that the European Commission issues

public, with easy access to a huge amount of

we now live. We increasingly see hundreds

annually about Romania.

information, naturally tends to choose the

or thousands of images per day in our news

path of simple, quick-to-judge facts, with no

feed, and we have a natural tendency to be-

Who is the team behind the project? How did you make the selection?

time for details. I therefore do not believe that

lieve what we see. Maybe we should ask how

the media should produce only what “sells”

distorted our perception of reality is if we

Documentaria is going to be an open project

quickly and abandon any mission to educate

don’t invest in the professionalism of those

and we welcome any valuable contribution

and inform. Otherwise, we enter into a spiral

who build it. I think everyone has the respon-

that meets the standards I mentioned. So far,

from which we cannot exit. I do not think we

sibility to restore truth and avoid manipula-

we have published photo reports by Ioana

need to reinvent how to do journalism; on

tion, from the photojournalist to the editor,

Moldovan – “A countryside doctor”, which

the contrary, we should encourage the ethical

the public to those who invest in mass media.

was further published on The New York

principles on which this craft was built.

It’s a puzzle to which each piece contributes

dards, without being elitist. We want to grow

Times’ photojournalism blog. Another team

The essential role, in my opinion, is played

using editing programs later on a computer. If we want to understand an issue, we look for

in order to build the big picture.

member is Ioana Cirlig, whose photos have

by potential investors, people and companies

been exhibited in galleries in London, Venice,

willing to invest money, who need to under-

What do you have in store for this year?

Amsterdam and New York. Adrian Catu is

stand that a misinformed and uneducated

We are at the beginning and we have big

another, known for his numerous photo

society can only be weaker, and more vulner-

plans. In the coming weeks, we will try to

reports published in National Geographic and

able. And this will influence, sooner or later,

find the best way to speak to the public,

NG Traveler, as is Mircea Restea, who has 16

the decisions, the number of consumers and

using these stunning visual resources that

years of impressive experience. In addition,

their purchasing power.

we have. This year, we also plan to produce

Andrei Pungovschi, an AFP collaborator with numerous works in the international media,

more video content, podcasts and interactive maps. We will focus more on journalism and

and George Popescu, who’s been published in

How do you choose the subjects presented on www.documentaria.ro?

Der Spiegel, L’Express, CNN, Vice and Esquire

We want to build in time a visual archive of

with long-term documented themes that we

among others, work with us. Our team also

today’s Romania, looking at the education

cannot avoid forever, such as the tremendous

includes Andreea Retinschi, who has had

and health systems, people and society, infra-

discrepancies between urban and rural areas,

numerous exhibitions, and Alexandra Dinca,

structure and taxation, culture and traditions.

migration and demographic change. We will

PhD in Anthropology and initiator of another

We cannot understand why something does

also try to gather a community around us

documentary project – dobruja.ro. The texts

not work unless we understand the broader

using social media, and to increase the level

are written by specialists such as Vintilă

context. I have tried, therefore, to choose as

of social participation in this community by

Mihailescu (Visiting Professor of several uni-

diverse topics as possible and we hope next

connecting to various social causes.

fact-checking data and produce materials

www.business-review.eu Business Review | March 2017

44 TAX & LAW

Government passes mixed bag of changes for business While the removal of the controversial construction tax has been welcomed by the business community, tax specialists warn that the payroll budgets of companies are set to come under increasing pressure after the center-left government led

by Sorin Grindeanu removed the cap on social contributions.

Romania. Still, considering that significant amounts (estimated at RON 4 billion) were collected from this tax from 2014 to 2016, its elimination is expected to put great pressure on the state budget, in conjunction with the other fiscal and budgetary measures adopted at the beginning of this year,” Alexandru Cris-

By Ovidiu Posirca

tea, partner at Tuca Zbarcea & Asociatii Tax, told BR. The initial tax rate of 1.5 percent per year was lowered to 1 percent last year. It was applied on the entry value of assets, so the authorities ignored their depreciation rate.

The sums saved from this area could be used by companies for investments, to train staff or hire new people, suggested Razvan Graure, tax partner at law firm Musat&Asociatii.

HIGH EARNERS TO BE TAXED MORE One of the most controversial measures approved by the new government has been the elimination of the threshold for health fund contributions, which will impact primarily top-earning employees.

“On the other hand, the thresholds of health and pension fund contributions have Alexandru Cristea, Tuca Zbarcea & Asociatii Tax

T

been maintained for independent contractors (such as freelancers or IP owners). In addition, as of 2017, no health fund contribution is due on investment revenues (i.e., dividends

his year has also brought a reduc-

and did not represent a significant burden for

and interests). Consequently, in general,

tion in the general VAT rate by one

taxpayers, although the overall impact on the

a greater tax burden has been placed on

percentage point to 19 percent and an

state budget could be “considerable”.

wages versus other types of revenues. In the medium term, this may have a boomerang

increase in the gross minimum wage to RON

COMPANIES COULD INVEST MORE IN CRITICAL INFRASTRUCTURE

effect, considering the need to strengthen the

Earlier this year, the president, Klaus Io-

After two years, companies in utilities, tele-

Zbarcea & Asociatii.

hannis, signed into law a draft bill that would

communications and the oil & gas industry

scrap 102 taxes, eliminating the mandatory

got more wiggle room in the fiscal frame-

whose monthly gross income exceeds five

public radio-TV tax, the environmental stamp

work, following the elimination of the special

medium gross wages, which was over RON

for vehicles and certain fees that previously

construction tax that applied to infrastruc-

15,655 in February 2017, will earn less.

had to be paid at the National Trade Registry

ture pieces such as oil pipes, electricity poles

Office (ONRC).

and network relays.

1,450, alongside the new taxation mechanism for micro-enterprises.

middle class in Romania,” said Cristea of Tuca Owing to the new changes, employees

For instance, a gross monthly income of RON 18,000 would result in a net income of

“The elimination of the construction tax

RON 12,940 (around EUR 2,875) in January

EY Law | Radu si Asociatii, many of these 102

from 2017 is definitely a much-needed breath-

2017. From February 2017, with the new tax

non-fiscal taxes had relatively small values

er and a positive message to top taxpayers in

provisions in place, the loss per year would be

According to Ruxandra Mocanu, lawyer at

www.business-review.eu Business Review | March 2017

46 TAX & LAW

102 The number of non-fiscal taxes eliminated earlier this year

and the latest figures from Eurostat, the statistics office of the European Union, show this.

In 2015, R&D expenditure in Romania stood at 0.49 percent of GDP, meaning that the country spent EUR 782 million in this field. Meanwhile, the combined expenditure figure of all EU member states stood at EUR 300 billion. The largest share of R&D expenditure was recorded by the Romanian government sector, at 38 percent – the biggest percentage of all member states.

And Romania might also run into legal problems at European level due to the tenyear profit tax break for companies doing Inga Tigai, EY Romania

Razvan Graure, Musat&Asociatii

R&D. “We have to see the way in which the application norms for this facility are published

PROFIT TAX BREAK FOR COMPANIES DOING HEAVY R&D

in time for the benefit of firms. The main chal-

earning around EUR 7,000 each month, the yearly loss will amount to EUR 8,725, accord-

The Romanian authorities are trying to attract

EU’s approval for these facilities, considering

ing to EY Romania.

more companies doing research & develop-

that they go under the ‘umbrella’ of state aid,”

ment (R&D) activities and have enforced a

Camelia Stanciu, senior manager, direct taxes,

highly qualified workers, and, in general, for

government emergency decision this year

at EY Romania, told BR.

people holding management positions that

through which these firms will get a ten-year

are employed in Romania or that are affiliated

profit tax break. The government is hoping

Stanciu says that everybody hopes that future

detached in the Romanian social insurance

that this move will support the creation of

changes will not be dramatic and that the

system,” said Inga Tigai, senior manager,

more start-ups by young researchers. In the

government will make sure it has the funds to

income tax and social contributions, at EY

past, authorities have approved tax deduc-

support any tax cuts.

Romania.

tions of 50 percent for the expenditure of

of RON 3,780 (around EUR 840). For someone

“The impact is even bigger in the case of

Companies are also facing a conundrum following the rollout of this tax change: they could step in to partially or fully cover

lenge will be how Romania is able to get the

As for the outlook for the local tax system,

Already, the European Commission, the

companies doing R&D, but it might be a while

executive arm of the European Union, said in

until Romania becomes a hub for researchers.

its winter forecast report for the economy that

“Although in theory, the fiscal regulations

the public deficit in Romania could reach 3.6

the amount that will be lost or could simply

in this area are favorable, in practice, in the

percent of GDP this year, due to a combination

leave gross wages unchanged, which means

last few years we have seen a slight reluc-

of tax cuts and growing wage bill in the public

employers run the risk of losing some of their

tance on companies’ part to apply provisions

sector. This came as a cold shower for the

most valuable people.

regarding the additional deduction of 50

government, which forecasts a deficit of less

percent, probably due to a lack of certainty

than 3 percent. The government estimated 5.2

employees impacted by this tax change could

over the approach of tax inspectors in rela-

percent economic growth this year, while EC

simply decide to take a job abroad.

tion to these provisions, and the timeframe

experts put it at 4.4 percent.

Tigai of EY Romania suggested that some

In the case of firms with Romanian capital, we might see a migration towards sole traders

for ongoing fiscal inspections,” Graure of Musat&Asociatii told BR.

So, Romanians can’t fully ignore the risk that the government might think of new taxes

Romania has been struggling for years to

overnight simply to plug the potential holes in

ployees registered in this way could get a fis-

advertise itself as a good destination for the

the budget – something that has happened on

cal advantage, says the EY Romania manager.

companies of the future doing a lot of R&D

numerous occasions in the past.

or limited liability companies (SRL), as em-

www.business-review.eu Business Review | March 2017

48 ADVERTISING

It all ads up: advertising shoulders its economic share For years skeptics and advertising critics have argued that the role of advertising is limited only to entertaining consumers and helping increase companies’ sales. But a recent European study conducted by Deloitte asserts the opposite, praising the role advertising plays in the overall economy.

In the last ten years, the organization rolled out the Romanian Online Advertising Study (ROADS) study. It is preparing a Quality Mark for websites that are aligned with IAB standards that respect users’ interest in accessing the content and those doing their best to offer a non-aggressive experience on their

By Romanita Oprea

website, and have best practices in content creation. for Renault Group.

So what is propelling this growth? A recent

R

to be more diligent regarding users’ experi-

European study, financed by members of the

ence and advertisers to be more aware of the

European advertising industry and conducted

quality of the environment – it’s a first step

by Deloitte, reported that every euro spent on

in a broader plan to enhance the awareness

advertising yields a seven-fold bonus for GDP,

and importance of quality digital advertis-

encourages innovation, underpins employ-

ing within the economy,” said Ioana Anescu,

ment and supports investment in important

managing director of IAB Romania.

services. Value of Advertising identified

Eugen Suman, MullenLowe

“This way, we are encouraging websites

Another project supporting the role of

a series of multiple benefits generated by

digital advertising within the economy is

advertising for the global economy, civil

the Digital Marketing Qualification (DIMAQ)

society and jobs. It is the first report created

that will arrive in Romania in April. This is a

at EU level that isolates the economic and

complex education program of certification

social contribution of advertising for the EU’s

and development of human resources in the

economic growth. The study was commis-

sector with the role of setting the industry’s

sioned by the World Federation of Advertisers

standards in terms of knowledge needs and

and supported by other partner industries

evaluation within digital communication.

omania’s GDP went up by 4.8 percent

and, through econometric modeling, showed

in 2016 versus 2015, according to the

that advertising contributed to almost 6 mil-

edge and develop digital skills for people

flash estimate published earlier this

lion jobs in the EU and 4.6 percent towards

already working in the advertising market or

month by the National Institute of Statistics

the EU’s total GDP. Moreover, there were

those looking to start a career in it. DIMAQ

(INS). For this year, estimates of Romanian

three key areas identified where advertising

is an important project, as it is the only one

economic growth range from 3.7 percent

generated direct or indirect benefits for the

on the market developed and endorsed by

(World Bank forecast) to 5.2 percent (the

European economy and EU citizens: econom-

the industry. It will help agencies make a

National Commission of Forecasting).

ic, social and workforce.

difference among many, it will help marketers

“It will help evaluate the existing knowl-

and advertisers have a unified language and

Meanwhile, the European Commission revised its growth forecast for Romania to

ADVERTISING INFLUENCES THE ECONOMY

a more prosperous relationship with all the

4.4 percent. The increase is set to slow to 3.7

What about the influence of advertising in Ro-

stakeholders in the market,” added Anescu.

percent in 2018.

mania? Although there aren’t yet any relevant

According to Ionescu, when one talks

studies being conducted solely on the impact

advertising, one refers to media strategy as

Romania, while in the euro zone they are

of advertising in the local market, according

well. In Romania, advertising is influenced

stable. E-commerce is registering a signifi-

to its representatives, the IAB (Interactive

by macro and micro factors, and has grown

cant increase y-o-y, with mobile online still

Advertising Bureau) is planning to conduct a

and developed in terms of influencing brands’

underdeveloped. Companies and agencies

study on the human resources involved solely

perception and consumers’ buying decision.

have become more big data-savvy and skillful

in the digital advertising sector – number of

She notes that advertising reflects consumer

in targeting consumers, especially in digital,”

employees, employment level and education

trends, which in turn are influenced by the

said Adina Ionescu, communication director

level.

micro and macro environment.

“Furthermore, retail sales are rising in

www.business-review.eu Business Review | March 2017

ADVERTISING 49 the competition and increases creativity in communication,” added Anescu.

IN THE YEARS TO COME When considering the future of advertising, Eugen Suman sees the industry evolving in parallel with new technologies and the new global consumer and trends. Advertising is an integral part of pop culture and therefore has to stay sharp, to be ahead of the pack at all times. However, balance is needed in order to not lose relevance. Therefore, regardless of what new media pops up, what new technology dazzles people, what new forms of art Ioana Anescu, IAB Romania

Adina Ionescu, Renault Group

and entertainment awe the world, agencies have to use it to create relevant and persuasive stories that people will enjoy “in order to

DRIVE, DYNAMISM, CREATIVITY

try and medicine.” Her expectations for the

meet clients’ goals, be it to sell more products

The marketing and advertising industry is

growth of the market and the digital sec-

or change the world for the better. Adver-

one of the main motors of the economy in

tor are shared by Elena Visan, HR manager

tising is an integral part of our economic

Romania, as in any other country, believes

at Tempo Advertising. She points out that

system, no matter how the industry changes

Eugen Suman, executive creative director at

online media has exploded in recent years,

with the times. In the end, and oversimplify-

MullenLowe. “I don’t think that we’re lagging

diversifying at the same time and taking over

ing, you cannot sell something that nobody

behind on general principles or how adver-

parts from other media. “Thanks to the power

knows exists,” said Suman.

tising is consumed in Romania. There aren’t

of advertising and its channels, alongside

too many differences between our market

the obvious economic benefits that gener-

and one can only make a projection based

and the whole European market in terms

ate competition and innovation, advertising

on information currently available. As Elena

of the industry’s way of working. However,

succeeds in influencing the Romanian social

Visan points out, the need for specialists will

there are things that are not quite where they

and political environment. “At the end of the

continue to grow in advertising. This is due

should be. I wish the overall quality of work

day, advertising is just a means of promoting

on one hand to migration (more and more

were better, especially when it comes to the

and communicating in a manner as direct and

youngsters accessing jobs in Europe), and on

craft in our work,” said the executive creative

fast as possible with the final consumer. In

other hand, the phenomenon called the “flex

director. Romanian advertising is not only

this context, talent and technology became a

economy,” or the “gig economy,” namely the

currently losing talent to Europe and the US,

strategic differentiator on the communication

part time/freelancer workforce that is starting

but also other fields, such as tech and IT.

market. Moreover, from a purely HR angle,

to be more and more accepted and adopted

the development of new channels has created

by current agency employees. “There is an

a step back, take a good look at the situa-

specialized companies, new positions and

online market where demand meets supply,

tion and agree that you cannot always have

new specialists in different fields that didn’t

where freelancers meet their future clients,”

fast, cheap and good work. I think we need

exist ten years ago – positions that require

said Visan.

to understand that good work costs money,

the hiring and training of personnel from IT

but also that the ROI of a good campaign is

departments or connected fields of expertise.”

“I think we, as an industry, need to take

Even the future is impossible to predict

Meanwhile, the MullenLowe representative puts forward the idea of regional

exponentially better than that of a mediocre

Last but not least, advertising is about

campaigns led by Bucharest as the norm, not

one. So let’s up those budgets a bit, let’s give

influencing people and shopping trends, and

the exception, the idea of talent from all over

people time to actually do the work and let’s

has a strong impact on consumption patterns

Central and Southern Europe fighting to get a

all enjoy the growth and the great numbers

and habits. The IAB Romania representative

job here instead of the other way around. “Of

that come from that attitude. If we drive the

cites advertising’s responsibility regarding

course, that won’t happen unless the whole

costs and the quality underground then we

information and quality content. “Advertising

economy grows – and advertising can only

drive our marketing ROI and brand health

influences the entertainment industry and

do so much. If the whole economy suffers,

metrics underground,” concluded Suman.

the available information on media chan-

we all suffer. We won’t be able to do much if

nels. Its impact is not just at the level of how

the climate isn’t stable, if laws get changed

economy will benefit from this growing

many people are engaged or employed in the

overnight or if corruption makes the playing

education trend, because the need for digital

sector, but also consuming patterns, trends,

field uneven. These are issues that advertis-

knowhow and digital communication skills

news and content creation. Additionally,

ing can help with, but cannot solve by itself,”

will grow, even in the public sector, indus-

advertising helps to differentiate [you] from

concluded Suman.

Anescu of IAB Romania, says that “the

www.business-review.eu Business Review | March 2017

50 ART

The personal is political: art journeys into public spaces Nowadays, galleries and museums are attracting more public interest – at least, people read about them and like the idea, but often without actually going. If there are walls and an entrance fee, that piece of art isn’t so public, making us uncomfortable about commenting on the content. However, in the street where we live, the supermarket where we shop, the square through which we walk, many of us believe that we have a right to give an opinion. What about Romania’s public space? Is there a place for art? Business Review tried to find an answer.

By Oana Vasiliu – representation is failure, representation is loss – and yet capable, versatile, illuminating, productive, and life-saving. Also, it can be used as an alternative to the private – a way of consuming society, politics or culture. Public is for all, but the space is not, since the space has a memory, a collective memory which can be forgotten,” politologist Eugen Radescu (specialized in moral relativism and political ethics), cultural manager, curator and theoretician, who is best known to the public for the Bucharest Biennale, told BR.

GETTING FASHIONABLE Photo: Adi Bulboaca

Worldwide, art in public spaces is becoming increasingly fashionable, and it has never been so important to make it better. But what should the work be? Is it for an existing community with an existing identity, or a new The Horizontal Newspaper designed by Dan Perjovschi for Sibiu theatre stands for the realities of the 21st century, being one of the most famous pieces of public art from Romania

A

community whose identity can be influenced by the commission? Is it going to be permanent or temporary? Art historian Erwin Kes-

ccording to Sinziana Barbieru,

decision of the county council or, where ap-

sler gives some insight: “Since antiquity, one

managing associate at ONV Law, the

propriate, the local council. The other assets

of the longstanding procedures of controlling

Romanian notion of “public space”

owned by state or territorial administrative

and taming the irrational and menacing public

is generally understood as a space accessible

units, that are not part of the public domain,

space was its penetration and regulation

to the public or for collective use, regard-

are considered to be in the private domain

through monumental works of art, convinc-

less of form of ownership or right to access.

and are subject to the ordinary law on private

ing yet aesthetic, tolerable landmarks of the

However, the concept of “public domain”

property, unless the law states otherwise,”

power in place. Art in the public space is a

is strictly correlated with the owner of the

added Barbieru.

paradoxical matter: it both aspires to inocu-

In a more descriptive way, going beyond

late positive, conservative values (like every

and includes the state’s public and adminis-

the general law-based definition, “In public

manifestation of power guided by a regime),

trative-territorial units, governed by Law no.

space, as we understand the concept, the

of the kind of awareness, awe, patriotism,

213/1998 on public property goods. “Goods in

‘space’ has some attributes as being never

fear, and it presumes the concomitant instil-

the public domain and territorial administra-

perfect, never complete or altogether compre-

lation of contrasting values such as liberty,

tive units are listed as such in normative acts

hensive, never final, but always tentative,

inner enthusiasm, and subjective pleasure.

(…) which are declared as such by law or by

wanting, deficient, incomplete, unnerving

This is why, most often, art in public spaces,

goods in question, movable or immovable,

www.business-review.eu Business Review | March 2017

ART 51 the regime (manifesting its

to the current, engaged, progressive street art,

power like in Universitatii

risks being ‘kitsch’. The very rare instances

Square or in Tiananmen).

when art in public spaces turns into art on

Conversely, the really public

a private, inner scale, are maybe the major

public space welcomes dis-

token of a shared, social transcendence, able

sent, as is the case with the

to fuse together inner self and public psyche

‘Occupy’ movement on both

into civic identity.”

sides of the ocean, a few

Photo: Adelina Arsene

from the dull statues of various ‘pater patriae’

years ago, or with the Bucha-

OCCUPYING THE STREETS WITH NEW FORMS OF ART

rest Piata Universitatii and

Nowadays in Romania, some serious civil

These movements attest

society alarms are sounding. For more than

to the recent tendency of

three weeks, Romanians have occupied the

appropriating public spaces

public squares and nearby streets to pro-

out of ideologies, for truly

test the government’s new laws. The most

(and sometimes disquieting)

important media outlets from around the

usages, from camping to

world have been supportive, transmitting

cooking, teaching, debating,

Romanians’ demands of its newly-elected

art-making or even sex-hav-

government. Out there, every night, it’s a

ing,” adds Kessler.

Piata Victoriei nowadays.

Photo: Dan Cristian Gocan

creative festival of placards with messages for the government. Yes, we are creative and we demonstrate it every single night. However,

GETTING ARTY ON BILLBOARDS

the interesting thing is, we are currently

With the curatorial concept

protesting in Piata Victoriei, not in Piata

“What are we building down

Universitatii, the point zero of democracy

there?”, last year’s Bucharest

since the Romanian revolution in December

Biennale (BB7) highlighted

1989, where we used to. The giant giraffe

the themes of privatization, commercializa-

locations too often,” said Felix Tataru, global

(which stands outside a museum) is currently

tion and corporatization of the post-socialist

president of the International Advertising

a democracy landmark. It’s a meeting point

city, displacing the biennale onto 21 advertis-

Association (IAA) and president of GMP

for the demonstrators. And it’s watching the

ing billboards. “Because the billboards are all

Group Romania. “From my experience with

government building, bringing new symbol-

over Bucharest, from Pipera to Piata Muncii

the IAA, I would recommend predictability

ism to Piata Victoriei.

and Colentina, not only the visitors inter-

and reducing the display areas. By reducing

ested in the biennale, but everyone around

the outdoor area in Bucharest by about 55

not the same as the public space in Bucharest

Bucharest, will be able to learn about the city

percent, we would obtain two positive ef-

in 1988, 1989 or 1990. Extension, shrinking

and the works of art that tackle issues ranging

fects. The first one is an increase in credibility

and distortion of the public space is inher-

from privatization to urban planning and

of the outdoor category. Outdoor is currently

ent to its nature of being public. Everything

our relationship with the places that we live

underestimated in Romania, as overexposure

public is heteronymous and unpredictable,

in. Staging an exhibition entirely in a public

leads to lower impact and efficiency. Lack

as it is a space where mainly trans-individual

space will bring art and the ideas behind the

of predictability means that impact cannot

behavior unfolds. Only the totalitarian (non-

works closer to anyone and everyone living

be measured, since new billboards appear

public, as it is the full property of the system

in or visiting the city, potentially attracting a

and disappear overnight. To be predictable

in power), public space is deemed to be static,

lot of newcomers to the art world who might

means having a certain number of billboards

controlled, predictable. This was the case

not usually visit museums, galleries or art

for a certain area with measurement tools for

with Romania before December 1989, and

centers, allowing us to present the biennale to

them. This measure would increase audience,

with North-Korea until today. The authori-

a much wider audience,” said Gergo Horvath,

impact and clients’ investments in this cat-

tarian, non-public public space was typified

co-director of the Biennale, at the time. And

egory. It would also increase the quality of the

by the violently imposed positive, construc-

the impact was amazing.

exposed materials – for instance digitalized

“The public space in Bucharest today is

tive, and optimistic features, in the pattern

But what’s really happening downtown

outdoor. The second advantage would be the

agreed by the regime. The non-public public

when it’s about advertising, not art, in

aesthetics of Bucharest, of its urban architec-

space is typically a place of (pre-determined)

public spaces? “Speaking of media exposure

ture. There are cities that have already done

consensus. No dissent is permitted. When

in Bucharest’s public space, we can easily

this: London, Paris, Berlin. There is also Rio

dissent surfaces, the non-public public space

notice that we’re dealing with overexposure,

as a real case study. They banned outdoor ad-

shows its nature of private space, owned by

with too many billboards changing display

vertising and have artists decorating the city.”

www.business-review.eu Business Review | March 2017

52 EXPAT EYE

Bigging up Bucharest: why we expats love your city In BR’s monthly column reflecting on expat experiences in Romania, our resident Brit outlines the five big reasons why the Bucharest life is best.

economy, from outsider to EU member state; as wages climb and the social, entertainment, retail and culinary scenes mature and diversify, there is the feeling that things are getting better. In the West, by contrast, many feel that our countries’ glory days are behind us.

By Debbie Stowe

O

Now, with Brexit and Trump, we’re sure of it.

ne of the questions that Western

Maldives and India; traveling to Chisinau

expats are most often asked by

to investigate people trafficking; working

Romanians is what we like about

on English-language pop songs with top

I’ve written before in this column about how

living here. When I first arrived, 15 years ago,

Romanian musicians; auditioning in front of

safe Bucharest feels by the standards of a

almost every conversation I had included

an iconic Hollywood director (no, I didn’t get

European capital. While I wouldn’t set foot

some version of: “So you’re from London but

the part). And it’s not just me – most expats

in a British park after dusk, here I’ll happily

you choose to live here (baffled face)… Why?”

are doing much better here than they would

wander home through Cismigiu or Izvor

5

IT’S SAFE

be back in their native lands. It can be big

in the early hours with no fear. In the UK,

poor perception of their own country (“Ro-

fish in a small pond syndrome; it can be the

almost everyone has heard of someone being

mania’s a nice country – shame it’s populat-

advantage or cachet conferred by English-

mugged at an ATM or having their phone or

ed” is a common refrain from local people).

language skills or Western business experi-

bag snatched. While this must occasionally

But I think it’s also a result of the inability to

ence; it can be Romania’s emerging market

happen here too, it’s much, much rarer.

see your country as outsiders see it – the very

status. Whatever it is, the career boost is a big

thing this column sets out to address.

selling point.

It stems partly from many Romanians’

So, in the hope of resolving the mystery, here are five reasons why I choose to live in Bucharest.

1

IT’S CHEAP!

3

of bugbears there too – like the lunacy of

the communist blocks are not aesthetic

separate hot and cold taps! But that’s another

gems; there are graffiti and dirt in many

column.

foreigner it can sound crass, given that many

ning appears eclectic to put it politely. There

Romanians struggle to get by: to be more spe-

are certainly Western European cities that

cific, it’s a lot cheaper than London. Not ev-

look sprucer and smarter. But what about the

erything – supermarket food here costs about

lovely interwar villas, in all their crumbling

the same, sometimes even a little more;

grandeur? What about the pretty parks? What

electronics and imports are more expensive

about the airport drive in autumn, when a

in Romania. But the big hitters in the expat

riot of reds, yellows and auburns festoons the

budget – accommodation (renting or buying),

trees by the lake? Glance up in the city center

transport and entertainment – are all much

and you’re almost bound to see an intriguing

more affordable. If you’re lucky enough to

spot of architectural sculpture. Embrace the

have an expat salary (even a modest one),

shabby chic, and you’ll find an enchanting

you can enjoy a great lifestyle, free from the

capital.

2

not paved with gold, and you’ll find plenty

Some would argue this point with me. Okay,

neighborhoods; and some of the town plan-

public transport fares back home.

the other way, and we’re swimming against the tide. But London’s streets really are

BUCHAREST IS BEAUTIFUL!

This must be qualified, as coming from a

stresses of a crippling mortgage and rip-off

We expats know most of the movement is

4

1

2

THERE’S A SENSE OF OPTIMISM

The timing’s not great for this point, with

PROFESSIONAL OPPORTUNITIES ABOUND

the PSD having come to power late last year and hundreds of thousands out in the street

As a writer, I’ve landed opportunities in

protesting the party’s grubby attempts to

Romania that I couldn’t have dreamed of

decriminalize graft. But in general, as Ro-

back in the UK – writing travel guides on the

mania journeys from communism to market

3

www.business-review.eu Business Review | March 2017

CITY 53

Split

FILM REVIEW

By Debbie Stowe

Lu Richardson and Jessica Sula), are the

DIRECTOR: M. Night Shyamalan STARRING: James McAvoy, Anya Taylor-Joy, Haley Lu Richardson, Jessica Sula, Betty Buckley ON AT: Movieplex Cinema Plaza, Grand Cinema & More, Happy Cinema, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall, Cinema City ParkLake

O

ne test of a good actor is versatil-

slightly superficial, all-American teens who make up the typical killer-fodder in slayer flicks. The other, Casey (Anya Taylor-Joy), however, is cut from a different cloth: the high school weirdo, she seems more familiar with the behavior of predatory men, for reasons that gradually become clear in flashbacks. Will her childhood suffering and subsequent understanding of the nature of sickos be the key that helps the girls escape?

Split’s basic premise of attractive teenage

ity: are they convincing in starkly

girls kept in captivity by a madman is well

different roles, or is there just one

worn, and much of the action is standard

thing that they do quite well in all their films?

stuff: is he coming to kill them? No, not yet;

So Kevin Spacey (equally convincing playing

foiled escape attempts; chase scenes; excuses

a psycho killer as he is a lovelorn dweeb)

to remove the clothing of nubile actresses,

passes the test with flying colors, while Hugh

you know the drill.

Grant (seldom venturing beyond self-effacing upper-class Englishman) doesn’t.

By this measure, James McAvoy must be

The plot’s quirk, though, is that it’s not so much whether the cops will arrive in time to save the damsels in distress, but whether

a superlative actor, because he not only nails

one of Kevin’s more benign personalities will

turns as a prim matron, a geeky nine-year-old

come to the fore and stop his darker selves

boy and a steely-eyed obsessive-compulsive –

from carrying out their evil designs. (Though

he does it all in the same movie.

even this isn’t new: the 2003 John Cusack

If his performance had come in a “serious” film, the Scot could well have had a shot at an

film Identity had a very similar premise.)

Working towards a positive outcome is

Oscar. But instead, it comes in this psycho-

kindly psychologist Dr. Karen Fletcher (Betty

logical horror-thriller, from kooky supernat-

Buckley), Kevin’s long-term shrink, who

ural-dabbling director M. Night Shyamalan,

believes in her patient and tries to help him

and so the actor will have to settle for wow-

keep his demons at bay.

ing the popcorn-eating masses.

The “split” of the title refers to personal-

His therapy sessions (during which we know his prisoners are safe for now) form a

ity. As a young boy, Kevin (McAvoy) suffered

nice tonal counterpoint to the tenser scenes

severe abuse at the hands of his mother, the

back in the cellar, and give the viewer a break

trauma of which has resulted in dissociative

from the claustrophobia. The atmosphere

identity disorder, meaning he now has 23 dif-

is well maintained, and though some of the

ferent selves vying for dominance, all coming

scenes are hackneyed, Split is an effective

to the surface at various times.

chiller.

One of them takes a perverted interest in

It’s greatly elevated by McAvoy’s virtuoso

teenage girls, which is how three such come

performance: in a weaker actor’s hands, the

to be locked up in a creepy cellar (atmo-

action could have descended into camp, but

a bizarre cameo that will be baffling until you

spherically highly reminiscent of 2016’s 10

the Scot maintains as much believability as

research the context of the movie), which

Cloverfield Lane) a few minutes into the film.

the storyline allows. Shyamalan also throws

keep Split from following the captive-teens-

the viewer some curveballs late on (including

in-peril-from-lunatic clichés too faithfully.

Two of the girls, Claire and Marcia (Haley

www.business-review.eu Business Review | March 2017

54 CITY

Cultural calendar

By Oana Vasiliu

Ana, mon amour Film premiere March 3, cinemas nationwide

The big band swing sound that Glenn Miller’s band made Ana, mon amour is Calin Peter

popular in the 1940s still

Netzer’s latest and most eagerly

resonates with audiences, making the World Famous Glenn

awaited movie, starring Mircea Postelnicu, Diana Cavallioti and

from RON 12 to RON 80.

Carmen Tanase, among others.

It tells the story of Toma and Ana, who meet as students at Lit-

Jason Mraz concert March 11, The Radio Hall

erature College and quickly fall in love. However, Ana’s mental

“Jason Mraz has quietly amassed

illness imperils their relation-

a youthful, diverse, and vibrant

ship. The movie was recently

fan-base throughout all parts

presented at the Berlinale.

of the globe. Since getting his start in coffeehouses in his

A Lost Letter March 5, Bucharest National Opera

adopted city of San Diego, Mraz has brought his positive message and soulful, folk-pop sound to rapt audiences around the world through his recordings, vibrant live performances, and philanthropic efforts,” say the singer-songwriters’s people.

His performances have received global awards with numerous diamond, platinum and multi-

Composed by Dan Dediu and

platinum certifications for his

conducted by Tiberiu Soare, this

various releases. He has made

performance of one of the best

pop history with his record-

Romanian comedies returns to

breaking classic singles, “I’m

the Bucharest National Opera

Yours” and “I Won’t Give Up”,

stage. Despite having been writ-

racked up two Grammy Awards

ten more than a hundred years

among six nominations, won a

ago the play’s timeless themes of

prestigious Hal David Songwriter

love and politics remain relevant.

Hall of Fame Award, won Teen

The spirited conductor, Soare,

Choice and People’s Choice

has drawn an insightful, colorful

awards, sold out amphitheaters

interpretation of this demand-

and arenas across the globe,

ing score from the Bucharest

including sell-outs at such iconic

National Orchestra. Tickets cost

venues as The Hollywood Bowl,

Madison Square Garden, and

Miller Orchestra an unmissable

London’s O2 Arena. Tickets are

event for fans of the genre. The

sold out, but some may still be

band is coming to Romania for

available through unofficial

the first time, likely bringing

channels.

Miller’s classics, including In the Mood, Little Brown Jug, Tuxedo

World Famous Glenn Miller Orchestra March 11, the Romanian Athenaeum

Junction, String of Pearls and Pennsylvania 6-5000, to a local audience. Tickets cost from RON 250 to RON 450.