BR/03/2019

MALL CHANGE: FOOD AND FUN EDGE OUT HYPERMARKETS AS ANCHORS

March, 2019 / Volume 23, Issue 3

www.business-review.eu

6

FACEBOOK – 15 YEARS OF SHAPING THE DIGITAL INDUSTRY GAME

30

DIGI COMMUNICATIONS INVESTS NEARLY EUR 2.5 BLN IN THE LAST DECADE

36

BIGGER SCREEN: GOPO AWARDS, ROMANIA’S OSCARS, SET NEW RECORDS

44

19 PEOPLE

TO WATCH IN 2019

www.business-review.eu Business Review | March 2019

EDITORIAL 3 REAL ESTATE

• Editorial •

Anda Sebesi • Deputy Editor-in-Chief •

6 Mall change:food and fun edge out hypermarkets as anchors

COVER STORY

Praising the stars

A

ny company that operates in a highly competitive market, which describes the local economy right now, is only as good as its people. With this in mind, on the occasion of

the 14th Business Review Gala Awards – BR magazine’s flagship event that recognizes the outstanding achievements of the busi-

10 19 people to watch in 2019 DIGITAL ADVERTISING

ness community – we have chosen to dedicate a special cover story to the inspirational stories of 19 businesspeople to watch in 2019 – be it entrepreneurs or CEOs of large corporations.

We hereby present to you the tales of 19 people and companies

30 Facebook – 15 years of chang-

who made a way of life from top performance last year. They have

ing the digital industry game

big plans for 2019 too, a year when Romanian entrepreneurs are preparing to face a much tougher business environment, as the economy approaches the end of a growth cycle, with potentially steeper costs, lower demand and greater uncertainty. In some sectors, businesses are already seeing signs of falling demand. The last manufacturing barometer released by the SNSPA, a university of political and administrative studies in Bucharest, showed weak activity in January for the second month in a row. And for coping with such a challenging local business environment and being innovative, they deserve their stories to be heard, too.

Disruption and new technologies are forcing many industries to

TECHNOLOGY & BUSINESS 32 Murielle Lorilloux, CEO of Vodafone Romania: ”We hope to be able to invest more in technology and customer experience”

34 Serghei Bulac, CEO of Digi Communications: ”We invested nearly EUR 2.5 bln in the last decade”

adapt to the new climate and be increasingly innovative – the real estate sector in general, and retail segment in particular, among

CITY

them. Shopping centers are changing fast, trying to keep pace, and even if Romanian and European malls are not falling one by one like their American counterparts, they are having to invest heavily to adapt to the competition from e-commerce.

All this and more in this month’s issue of Business Review. And we hope to see you at our awards ceremony!

44 Bigger screen: Gopo Awards, Romania’s Oscars, set new records

46 Cultural calendar FOUNDING EDITOR: Bill Avery EDITOR-IN-CHIEF: Ioana Erdei DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Anda Sebesi JOURNALISTS: Anca Alexe, Aurel Dragan, Romanita Oprea, Oana Vasiliu, Razvan Zamfir CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania­­­­ LANDLINE: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: George Darie, Mara Dragoiu EVENTS & MARKETING: Luiza Luca PRODUCTION: Dan Mitroi DISTRI­­BUTION: Eugen Musat EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

www.business-review.eu Business Review | March 2019

4 NEWS

WHO’S NEWS

Patrulescu told BR. According to him, there are

BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at anca.alexe@business-review.ro

two types of buildings that will main companies’ keen interest: new prime buildings with low vacancy rates, which will still be attractive for investors and can help the yield compression, and buildings that come with an added value angle.

In Bucharest, 500,000 sqm of new office buildings is cur-

Ruxandra Bandila has been appointed by Deloitte Romania as director for marketing and business development. Her career path has taken her through various fields, from project management, marketing and business development to strategy and operations in different industries, and she now rejoins the professional services sector. Prior to joining Deloitte Romania, Bandila worked for CRH Romania, which acquired Lafarge Romania, first as strategy, development and supply chain director and then as chief operating officer.

page 5

rently under construction, and

Photo: Dreamstime

Livia Dumitrescu has joined Vodafone Romania as legal and external affairs director and member of the executive management team.

Most recently, Dumitrescu worked at Banca Transilvania as compliance director for Bancpost, one of BT’s acquisitions. She also worked for OMV Petrom for more than six years, where she held several managerial roles. Dumitrescu is a Romanian and British national who holds professional qualifications in law and fraud investigations.

approximately 350,000 sqm of space will be delivered by the end of 2019.

The office buildings sector is also developing in other major university centers

Bucharest office market could hit double-digit vacancy rates this year

By Razvan Zamfir

The most active developers in terms of deliveries will be the Portland Trust groups (63,000 sqm in Expo Business Park and Oregon Park), Vastint (62,000 sq ft in Business Garden and New Times Square), Globalworth (42,000 sqm in Renault Business Connected) and River Development (38,000 sqm in The Light and Sema Offices).

Bucharest’s office market might

International, demand on the

reach double-digit vacancy

market is affected by the strained

rates on some submarkets this

situation of the workforce. “The

also developing in other major

year, while new supply will be

market is practically relying

university centers, such as

around 350,000 sqm in 2019,

solely on new graduates; unem-

Timisoara, Cluj-Napoca, Brasov

around 60 percent of which has

ployment is very low. We are at a

and Iasi, where new buildings

already been pre-leased.

historically low point of the labor

with an area of approximately

force. That is why the new take-

130,000 sqm will be put into

up will plateau or maybe drop,”

use.

According to Mihai Patrulescu, chief economist at Colliers

The office buildings sector is

Uber expands to Iasi, fifth Romanian city

Photo: Dreamstime

By Sorin Melenciuc

Uber, the application which

service in Iasi, the fifth Roma-

connects riders with drivers, is

nian Uber city. Iasi has chosen

now available in Iasi, the biggest

Uber as much as Uber has chosen

city of Moldova. Iasi is the fifth

Iasi – thousands of people in

city in Romania where the app is

Iasi have opened the Uber app

available.

in the last six months. We want

“We are happy to launch our

to partner with authorities here

Uber made its entrance on the Romanian market back in 2015

www.business-review.eu Business Review | March 2019

NEWS 5

EURO 2020 sets first foot in Romania, seeks local volunteers Sergiu Oprescu has been named general manager of Alpha Bank’s international network. He will oversee the lender’s subsidiaries in four countries as well as its international branches.

Oprescu joined Alpha Bank Romania in 1994 and held several senior positions before he was appointed executive president in 2007.

By Oana Vasiliu The forthcoming UEFA European Football Championship, Euro 2020, is being held across the continent for the first time in the competition’s 60-year history, with 12 host cities in all, Bucharest among them.

Due to the high demands of the program, the Romanian Football Federation is looking for over 1,000 volunteers.

With the tournament taking place in 12 countries, ticket demand is set to rise to 3 million.

Volunteer programme aims to gather the population across Europe

The first million tickets will be put up for sale by UEFA this

coming to Euro 2020 will enjoy

qualify, the Romanian national

June, a year before the tourna-

the holiday atmosphere around

team will play at least two

ment kicks off. Meanwhile, the

the tournament and come into

games in Bucharest. Through-

special interest in the competi-

contact with the ambience and

out the tournament there will

tion is reflected in an estimated

culture of host cities, each of

be a Fan Zone in Constitution

TV audience of 5 billion.

which will organize football

Square and Unirii Boulevard.

Each host city has an emblematic bridge, so the tournament’s symbol is a bridge that

festivals in specially arranged venues.

Bucharest will host four Euro

According to the official website of UEFA, the objective of the UEFA EURO 2020

will connect football support-

2020 games, three in Group

volunteer programme is to

ers. Bucharest’s is Basarab

C and one quarter-final, with

integrate and gather the popu-

Bridge.

matches scheduled to be played

lation across Europe, as well as

at the National Arena on 14,

creating a legacy for the host

18, 22 and 29 June 2020. If they

countries.

As well as top-level sport, organizers hope supporters

to make the city less congested, reduce pollution as well as make it more tourist-friendly,” said Nicoleta Schroeder, head of Uber Romania.

Uber was founded in 2009 in the USA and has been active on the Romanian market since February 2015, having started in Bucharest and expanded in 2016 to Cluj, Brasov and Timisoara.

In 2017, Uber’s Romanian business increased by 56 percent to RON 7 million and its profit tripled to around RON 453,000.

Vladimir Aninoiu joined Deloitte Romania as director of the technology team within the management consulting practice. With a career spanning over two decades in management positions for Romania and other European areas, Aninoiu will lead a team of consultants specialized in technology, addressing current challenges specific to the fourth industrial revolution transformation.

Daniel Cateliu has been appointed by panEuropean logistics property investor-developer P3 as leasing and development manager in Romania, with responsibility for attracting new tenants for P3 Bucharest A1 park, the largest logistics park in Romania, as well as for P3 Bucharest NW Ring Road park, where the firm will build a new 80,000 sqm logistics park in the near future.

Cateliu has a track record in real estate, having spent five years with CBRE Romania, where he was senior adviser in the industrial and land development departments.

www.business-review.eu Business Review | March 2019

6 REAL ESTATE

Mall change: food and fun edge out hypermarkets as anchors The real estate market is being forced to adapt to the advance of disruptive new technologies, and the main victim seems to be the retail segment. Shopping centers are changing fast, trying to keep pace, and even if Romanian malls (and European ones generally) are not falling one by one like their American counterparts, they are having to invest heavily to adapt to the competition from e-commerce.

By Razvan Zamfir

AFI Cotroceni became de biggest Romanian mall with an area of 90,000 sqm

“

With the evolution of technology, the

brands). Also, the evolution of technol-

consultancy company. The obvious solution

concept of ‘experience transfer’ begins

ogy has led to the opening of a wide range

was to extend the retail center, expanding its

to grow in various retail business

of consumer options and identification of

attraction points. In this way, in many malls,

areas. Experience transfer captures consum-

things, brands, and locations with which

the real anchor ceased to be the hypermar-

ers’ expectations of finding innovation and

they resonate. A food court can no longer be

ket, its place being taken by entertainment

opportunities in an industry, also transferred

as simple and impersonal as eight years ago

and food court areas.

/ adapted to other areas. Example: if tech-

because visitors will no longer identify with

nology allowed the online fashion option,

it and will choose other options more suited

have shown us that a shopping center cannot

the same thing happened for a few years for

to their tastes and expectations,” says Corina

remain anchored in the fashion segment,

food retail (for supermarket / hypermarket

Stamate, center manager at JLL real estate

so in recent years we have also focused our

“The wishes and needs of our customers

www.business-review.eu Business Review | March May 2016 2019

COVER REALSTORY ESTATE14 7

• Approximately 40 percent of visitors to

efforts on developing the food & beverage

correctly identify the expectations of its visi-

(F&B) and entertainment segment, an essen-

tors / consumers. Expectations range from

a shopping center choose their destination

tial component for our business, for enhanc-

proximity shopping malls, destinations with

according to F&B options,

ing the experience of each visitor. That’s why,

more than 80,000 sqm GLAs, strip malls, etc.

in addition to the great fast-food players at

The share and traffic brought by different

dining area spends 15 percent more than the

AFI Cotroceni, we believe in unique con-

areas of the mall varies according to the par-

typical mall consumer,

cepts such as La Piatza (fast food, but with

ticularities of each country, but a very visible

extremely healthy, natural ingredients); Mag-

trend not only in fashion, but at European

spend about 35 percent more time at the

gie’s Ranch, which offers customers delicious

level, is where F&B and entertainment are

shopping center,

dishes in a Wild West decay setting; and Boss

important anchors in fashion and food retail,

Burgers, which sells mini-burger alternatives in multiple combinations to the classic American burger. Moreover, the F&B segment

in terms of traffic attraction,” said Stamate.

According to her, the trend began just shy of five years ago worldwide, but in the last

• A regular F&B consumer focusing on the

• Consumers coming to the F&B area will

• Shopping within the center grows by about 25 percent if there is an attractive F&B area.

At international level, a very clear exam-

is an area where we plan to invest in the long term, for expansion both in terms of surface and diversity. The same goes for the entertainment area: besides the Sensory Museum, which has been impressively successful, roller coaster, and ice rink, we always have new concepts that can make a shopping trip a complete experience,” says Costin Bilateanu, leasing manager at AFI Europe Romania.

The strategy is simple. The food court attracts almost everyone, and a good offer will boost visitor numbers. The

three years it has grown. Last year saw some

ple of how important this trend is is the new

same is the case with the entertainment area

internationally visible trends in this industry

American Dream Meadowloands developed

and cinema, which are usually located away

in various business areas. The sectors most

by Triple Five Worldwide, whose mix is 55

from the main entrance to the mall, so you

affected were hospitality / hotels and shop-

percent entertainment and food court, and

have to walk through almost all of the mall

ping centers.

the retail area remains 45 percent.

Other malls with a hefty proportion of

to reach it. And in time, maybe you will stop

Owners and architects are beginning to

and buy something from the stores you pass

rethink spaces or create new ones that aim to

food court and entertainment area in the

on the way.

unite the community within the city / sector,

total surface are NEPI Rockastle’s Shopping

becoming alternatives tailored to the social,

City Timisoara, with 11,000 sqm hypermar-

AFI COTROCENI, THE 90,000 SQM MALL WITH ALMOST A QUARTER FOOD COURT AND ENTERTAINMENT

technological and psychological demands of

ket and 11,500 sqm entertainment and food

consumers. As part of this trend, the owners

court, and City Park Constanta, also in NEPI

of shopping centers have started to look with

Rockastle portfolio, which has an 9,612 sqm

AFI Cotroceni, for example, a 90,000 sqm

great attention at the tenant mix, brands, and

hypermarket and an almost 6,500 sqm food

mall owned by AFI Europe, has an Auchan

the added value they can bring with retailers

court and entertainment area.

hypermarket of around 7,500 sqm, so less

to their company. Unique experiences and

than 10 percent of the area, while the food

a strong combination of entertainment and

industry and has emerged as a need to stay

court and entertainment area together make

F&B are becoming indispensable for a center.

within consumer socialization preferences.

up around 24 percent.

Old, traditional, international formats are no

In Romania, this trend can be observed in

”Proportionality is a novelty for the

longer performing well, and there is a trend

shopping centers such as Park Lake, Baneasa

6,000 sqm, with the works being finished

of focusing on fresh, new, innovative brands

Shopping City, and Promenada, which have

last year. “Depending on the type of mall /

capable of adapting to a new reality.

exploited the terrace area and turned it into

AFI Cotroceni was extended by around

shopping center, the anchors within them are

The trend at this moment is being felt

a city hot spot. Gradually, we will notice the

beginning to diversify as consumer behavior

keenly in Europe and will also grow in Roma-

owners’ tendency to reconvert certain spaces

changes in turn. At an international level, for

nia in the coming years. In Western Europe,

and transform them into a zone with unique,

a mall / shopping center, the most important

according to a JLL study in 2018, the follow-

diverse experiences adapted to the commu-

thing in this period of changing trends is to

ing trends can already be identified:

nity they are addressing,” predicts Stamate.

8 COVER STORY

www.business-review.eu Business Review | March 2019

19 PEOPLE TO WATCH IN 2019 Romanian entrepreneurs are preparing to face a much tougher business environment posing major challenges this year, as the economy approaches the end of a growth cycle, with potentially steeper costs, lower demand and greater uncertainty.

By Sorin Melenciuc

www.business-review.eu Business Review | March 2019

COVER STORY 9

A

fter years of fast growth rates in most sectors, low financing costs and stable taxes, business leaders have entered a year full of uncertainties and headwinds. Business Review

presents the biggest challenges facing entrepreneurs and managers in Romania this year.

RISING FINANCING COSTS As in any other economy, rising costs are a major burden for entrepreneurs as they limit access to financing and raise the general costs of a business. During the last few years, financing costs have fallen following the decline of inflation rates and money market rates but the trend changed last year, when financing costs rose due to a sharp increase in inflation.

Analysts forecast that the trend will continue this year. “Regarding the financial sector, we forecast the continuation of the trends of increasing financing costs and the depreciation of the national currency in the short term,” Andrei Radulescu, chief-economist at Banca Transilvania, predicts. And rising borrowing costs could hit Romanian companies even harder due to structural problems.

According to a recent analysis, in a moderate scenario, one in three companies in Romania faces the risk of becoming insolvent due to rising borrowing costs.

NEW (OR HIGHER) TAXES One risk already materialized in Romania is higher taxes. Running out of revenue sources, the government introduced a 0.3 percent tax on bank assets on January 1.

The tax is due quarterly – and at the value registered at end-2018, the sum would amount to RON 1.35 billion per quarter and RON 5.4 billion (EUR 1.14 billion) per annum. The government also imposed special taxes of 2 percent of turnover on energy firms and 3 percent on telecom companies, and capped the retail and corporate gas price at RON 68/Mwh. These measures will directly affect companies in those sectors but will also have an impact on the whole economy, experts say. The tax on assets is a significant cost for banks, which will certainly be transferred to customers via borrowing costs.

Such an impact can be forecasted by analyzing what happened in Poland following the introduction of a 0.44 percent tax on assets in 2016. “The implementation of the tax (in Poland) led to an increase in net interest and fee incomes, to a slowdown in lending and asset growth rates, and to a deterioration of the main Polish banks’ profit,” Radulescu says. In energy, the new tax on turnover will also have a direct impact on the economy as a whole through higher prices for household and corporate customers – and this translates into steeper costs for entrepreneurs.

The first price increase could come in March, according to the latest estimates. In telecom, the new tax translates into higher tariffs for mobile subscribers and a cut in investment – including a postponement in the 5G license agreement and network investment.

“The ordinance (114/2018) affects us extremely badly and not just because we have to pay 3 percent of turnover, which hits our profitability, but because the tax applies also to the non-telecom revenues

www.business-review.eu Business Review | March 2019

10 COVER STORY

that we have, of tens of millions of euro, which is not too smart, and

is available on the market. Like inflation, the currency depreciation

is profoundly discriminatory,” the CEO of Telekom Romania, Miro-

is seen as a double-edged sword. Importers are hit by the RON’s

slav Majoros, recently said.

depreciation, but exporters benefit as they are protected by hard cur-

But the measures could also have damaging repercussions for

rency revenues. However, both factors are associated with stress and

other sectors in the economy. Banks and energy firms have already

uncertainty for entrepreneurs as they have to manage their business-

suggested a cut in investment this year due to the new taxes – and

es in a more volatile environment than in the past few years. In fact,

this means fewer contracts for entrepreneurs working on various

pundits say it is difficult to predict within a decent margin the scale

projects with banks, energy or telecom firms. But the hardest impact

of price increases or of the RON depreciation over the next year. At

is expected on the private pension funds. Many experts warn that

the beginning of this year, the Romanian currency lost 2 percent of

this sector, with assets of EUR 10 billion, risks being blown away by

its value against the European currency in one week, but since then

Emergency Ordinance 114/2018.

it has remained in a short volatility range.

“The vast majority of Pillar II private pension managers in Roma-

Analysts have been prudent in giving exchange rate forecasts

nia, if not all seven funds,

in this period of high

want to withdraw from

uncertainty – and entre-

Romania, or are seriously

preneurs are struggling to

considering it, because the

sketch budgets in a volatile

market conditions seem

environment.

particularly onerous – a big financial effort for a nonexistent gain,” the central

WEAKER DEMAND AND ECONOMIC SENTIMENT

bank’s chief-economist

However, analysts and

Valentin Lazea cautions.

managers alike agree on

The seven Pillar II pri-

one key point: demand is

vate pension managers in

flattening in Romania fol-

Romania have to increase

lowing a few years of high

their total capital by RON

growth rates.

1.6 billion by the end of

The weakness of the

June and by RON 3.55

economic growth in Ro-

billion by the end of this

mania is that much of it is

year, a very high sum for a

the product of a consumer

market with total assets of

bonanza, stimulated by

close to EUR 10 billion at

years of wage-led growth

the end of 2018.

Contributors are also allowed to move their contributions from

government policy.

This year, the government showed clear signs of running out

the Pillar II scheme to Pillar I (public pensions), but the ASF expects

of money to finance its wage-led policies. At the end of February,

very few Romanians to do so.

Romania still had no budget approved as the president refused to

However, the new regulation will generate for the seven fund

promulgate it due to suspicions of unconstitutionality. Without a

managers – NN, Allianz, Aegon, BCR, BRD, Generali and Metropoli-

budget, government expenses are capped – at 1/12 of last year’s total

tan – losses between RON 43.4 million, in the best-case scenario, and

budget per month – which allows to the government to better control

RON 50.4 million in the worst-case scenario.

its spending.

Beyond the direct impact on fund managers, the dismemberment

The government has also frozen pensions until September and

of the private pension scheme in Romania could harm many other

cut total remuneration in the health sector by capping combined

sectors like the stock exchange, an alternative funding option for

bonuses to 30 percent of the base wage – a clear sign that it is trying

many entrepreneurs.

to control wage and social spending this year.

INFLATION AND RON DEPRECIATION

demand. The last manufacturing barometer released by the SNSPA,

Economic common sense indicates that new or higher taxes and cost

a university of political and administrative studies in Bucharest,

increases will boost inflation, which might have a mixed impact on

showed weak activity in January for the second month in a row.

In some sectors, businesses are already seeing signs of lower

local businesses.

Higher consumer prices may hit demand in certain sectors, a bur-

Another bad sign: costs are rising fast and employment is declining in this sector. “When the number of employees does not grow

den for many entrepreneurs. But inflation also creates a substitution

in real terms, it means that neither production nor tax revenues are

effect: some consumers affected by price increases tend to replace

likely to increase in the next period,” experts behind the barometer

more expensive goods with cheaper equivalents – if such an option

warn.

www.business-review.eu Business Review | March 2019

COVER STORY 11

Christophe Dridi: We are planning to expand the production capacity in Mioveni by 15 percent 2018 was a prosperous year for Dacia, in terms of production and sales. To keep up with demand and competition, the new CEO plans to increase the production capacity of the plant in Mioveni in the next two years and to focus on the robotization of manufacturing.

By Ioana Erdei

I

n December, Renault

through an investment of EUR

named Dridi general man-

100 million by 2021.

“The plant in Romania

ager of Automobile Dacia

and Groupe Renault Romania.

is working at its maximum

For the past two years, he has

capacity, which is why we

been the executive director

are planning to expand our

of the Dacia vehicle plant and

production by 15 percent over

a member of the company’s

the next two years,” Dridi told

management committee.

media. Daily Duster produc-

Dridi graduated from the Ecole

tion reaches 1,100 cars, out of a

Superieure des Sciences and

total production of 1,400 cars

Technologies de l’Ingenieur in

per day. Each production line

Nancy, France, and holds an

is at maximum capacity, he

MBA INSEAD degree. He began

added. The investment in the

his career at Renault in 1993

Mioveni plant will total EUR

as an engineer. In 2009, he be-

100 million, of which EUR 25

came manufacturing director of the Casablanca plant, and then moved to the same position at the Tangier plant, both in Morocco.

According to him, the main characteristics that every leader

million will come from state aid. All production lines will be expanded, according to the official.

Some 300 new employees will be hired in the next two years, he noted. This investment is part of his strategy to keep the Mioveni

should possess are: “a clear strategy; they should be capable of

plant as the gravity center of Dacia production. “The Dacia is sold in

motivating and having their teams grow, and be close to their teams

over 44 countries. But Romania is not the only country to produce

while actively listening to them,” he told Business Review in an in-

Dacia cars. There are 11 plants that produce cars under this brand.

terview. “From experience, I have noticed that the best ideas come

Romania is the origin country. In order to continue to be the gravity

from field teams. It is very important for a leader to listen, listen

center we need to strengthen the chain of global car access, from

carefully and make regular field visits. Reality is down there, and

design, to manufacturing, logistics and trade, and also to increase

not in presentations in the meeting room!”

our production capacity and attract new suppliers,” he commented.

The biggest challenge leaders

The new CEO of Dacia is also

face today is to be able to continu-

focusing on the robotization of

ously adapt. “Plus, spending too

manufacturing, which will reach

little time with their teams and

20 percent in 2021. “Right now,

not listening to them enough is

around 10 percent of the manufac-

one of the mistakes leaders make

turing is done through technol-

most frequently today,” said the

ogy,” he said. By 2021, production

Dacia CEO. His main immediate

will increase to 406,000 cars a

focus is to increase production

year.

capacity in the plant in Mioveni

www.business-review.eu Business Review | March 2019

12 COVER STORY

Focus on creating value and uniqueness With an increasing dynamic in its activity on the local scene, CBRE Romania focused on bringing to the market unique, value-adding and differentiating services last year.

L

By Anda Sebesi

ast year was a pro-

have won full mandates for

lific one for all CBRE

several clients, including the

Romania business lines,

Immofinanz office buildings

marked by a lot of challenges

of over 220,000 sqm and

both internally and externally,

Campus 6 of CA IMMO, while

from business integrations,

the dedicated team exceeded

personnel changes, additions

the 100 mark,” adds Moraru.

and promotions and new ser-

Elsewhere, CBRE Advisory and

vices added to its portfolio.

Transaction Services Romania

2018 also brought closer

provided consultancy services

regional collaboration, both

to 40 tenants from all business

inside the organization and

segments in 2018, identifying

outside of it, commencing with

the best solutions and creating

Luiza Moraru’s taking over as

the opportunity for these busi-

head of property management

nesses to grow. “In 2018, CBRE

department for the CEE region,

Advisory and Transaction Ser-

covering several countries

vices represented 24 percent

– Austria, Poland, Romania,

of the total market share in

Czech Republic, Slovakia and Hungary – and SEE. CBRE Romania also maintained its market leader position in the

Bucharest, making CBRE Romania market leader in this segment. Also, CBRE Romania has been the national leading retail agent for no less than three consecutive

year gone and for three years in a row has surpassed EUR 10 million

years with a total of 80,000 sqm leased through 308 closed deals by

in turnover, while its property management is the perfect proof of

the CBRE dedicated team,” says Moraru.

the company’s work and effort. “We achieved a new record of nearly

According to her, CBRE Romania invests in technology across all

700,000 sqm managed, almost double last year’s numbers and

its business lines and uses all its international know-how to develop

significantly larger than any other competitor in the market, making

the right tools for each type of building or topic. “An entire spectrum

CBRE the Romanian absolute market leader in this market segment.

of new CBRE tools are to be implemented in the properties that we

Moreover, our regional portfolio also grew substantially to nearly

manage in Romania and all the CEE countries, ranging from shop-

6 million sqm managed, a number unrivalled in the region, which

ping center apps, catchment area real-time analytics, performance

we believe is a sign of confidence and recognition of our service,”

analytics, building inspections, utilities and cost management,

says Moraru, MRICS, head of property management services CEE, at

community management, and portfolio management,” adds the

CBRE, retail and asset services.

representative of CBRE Romania. Last but not least, CBRE Romania

The shopping centers the company manages have been visited

is the first Romanian real estate consultant to have implemented

by 57 million people. “Last year

and used the Design and Build ser-

was a year of bringing to the

vice, which happened in 2018, for

market unique, value-adding and

example. “The way we intertwine

differentiating services: hospital-

our capabilities into our integrated

ity and customer experience for

‘end-to-end’ platform of complete

retail, community management

services completely changes the

for office and specialty leasing.

Romanian real estate business

2018 can be measured in numbers:

archetype and this is one of the

Property Management Romania

biggest goals that I’m driven by in

outgrew itself by 100 percent, we

2019,” concludes Moraru.

www.business-review.eu Business Review | March 2019

COVER STORY 13

Gruia Stoica: Romania’s entrepreneurial potential is enormous Grampet Group – Grup Feroviar Roman, the first Romanian multinational, is assuming a strategic, pole-position role to take the Romanian brand and entrepreneurial spirit abroad.

L

By Anda Sebesi

ast year marked the

“2019 is a milestone year

beginning of a new

for the European rail freight

development stage in

industry in view of market

Grampet Group’s history. The

liberalization this June. An-

company’s joining the Trans-

ticipating future challenges

Caspian International Trans-

and opportunities, we have

port Route has helped it reach

launched an extremely impor-

the objective Grampet Group

tant and complex digitaliza-

started with 20 years ago – to

tion project at group level. We

one day connect the Atlantic

also continue our investments

Ocean through the North Sea,

in upgrading and purchasing

to the Pacific, through the

rolling stock,” says the head

South China Sea.

of Grampet Group. He adds

“2018 has also brought us

that the company’s focus

public recognition as the first

is to capitalize on the huge

multinational in Romania. We

potential of container traffic

first stepped outside the coun-

between China and Europe

try in 2004, when we set up the Bulgarian Railway Company. In view

and organize the first container trains to and via Romania, with the

of our ambitious international expansion projects, we made strategic

support of the Trans-Caspian Middle Corridor members. “We are

changes in our management structure and launched a complex

open to diversifying our investment portfolio, especially in our core

consolidation process at group level,” says Gruia Stoica, president of

activities – rail freight. We are currently considering and prospect-

Grampet Group – Grup Feroviar Roman.

ing expansion on seven new markets in Europe,” he says.

Asked about the main achievements of his company last year,

All its business lines are building teams that fit the firm’s

Stoica says that Grampet Group became the first European company

entrepreneurial culture and are aligned to the requirements of a

to join the Trans-Caspian International Transport Route, a project

competitive business environment, a fair market economy and an

integrated into the New Silk Road initiative (One Road, One Belt), the

environment regulated by corporate governance practices. “Their

largest global infrastructure project in recent history. This step has

competence, perseverance and abilities have taken the Grampet

strategically positioned the company on the New Silk Road, final-

Group to its leadership position today,” says Stoica.

izing the construction of a new route, China to the European Union.

“We launched operations in Serbia and became the first Romanian

According to him, the rail freight industry has a strategic role at global level, and Romania is geographically well positioned to

freight company with a license

substantially benefit from future

to operate in Greece. We are cur-

developments.

rently in the process of hiring key

Joining the Trans-Caspian

personnel – train engineers and

International Transport Route

mechanics,” says Stoica. As for the

was a major achievement for

numbers, the company completed

the Grampet Group, but also for

total investments of RON 120 mil-

Romania overall. This alliance

lion (about EUR 26 million) in its

may transform the country into a

core activities. In addition, Stoica

logistics platform for Europe and

invested in finishing the three

Asia, generating around 100,000

oncological production lines at the

new jobs and over EUR 1 billion in

Polisano Pharmaceuticals plant in

state budget contributions.

Sibiu.

www.business-review.eu Business Review | March 2019

14 COVER STORY

Investing in the quality of an office and retail portfolio 2018 was another successful year for Immofinanz. With a portfolio volume of EUR 4.3 billion, the company is one of the leading commercial real estate players in Europe concentrating on office and retail properties.

I

By Anda Sebesi

n Romania Immofinanz

international markets and we

has further strengthened

keep adapting to their needs,”

its position with its three

says Dinu.

She adds that due to its

brands: myhive for offices, VIVO! for shopping centers and

leading position within its core

Stop Shop for retail parks.

region and its international

“Due to our clear brand

brand policy, its properties

policy as well as our focus on

have a high recognition

the needs and requirements of

value and its brands are a

our customers, we managed to

well-known promise regarding

maintain the occupancy rate

quality and service. “For in-

of our portfolio at a very solid

ternational retailers, our large

level of about 95 percent and

retail platform including 10

we gained a number of new

VIVO! shopping centers and 80

tenants as well as extensions of

Stop Shop retail parks in nine

existing contracts. Additional-

countries is of high interest.

ly, we are consistently pursuing

Additionally, as a stock-listed

our strategy of selling proper-

company which also has an

ties that no longer fit within

investment grade rating we

our core portfolio and sold several larger land plots which are suited

have a very solid financial position and very good access to capital

to residential development,” says Fulga Dinu, country manager

markets,” she says.

operation at Immofinanz Romania.

Asked about the strategy for 2019, Dinu says the company is

In November last year, Immofinanz announced that it had purchased eight retail parks in Slovenia, Serbia and Croatia. The

focusing on continuing to invest in the quality of its office and retail

purchase price totals approximately EUR 90.5 million. The newly ac-

portfolio as well as in the offer for its tenants.

quired properties are fully rented and generate annual rental income

“The office property market is highly competitive and offices

of roughly EUR 7.2 million, which represents a gross return of 8.0

must serve more than their basic purpose, and today the myhive

percent. These transactions increase Immofinanz’s Stop Shop port-

concept is the best example I can give. The brand’s success relies

folio to over 567,000 sqm of rentable space and a carrying amount of

on its hotel-inspired design, the wide range of provided services

approximately EUR 800 million. Further acquisitions are currently

and the valuable community it creates among its tenants,” adds the

under evaluation, and two Stop Shops in Poland and Serbia are now

manager.

in the active development phase. With a portfolio that reaches more

At present, Immofinanz Ro-

than EUR 800 million, Romania

mania already has three myhive

is one of the company’s core mar-

buildings in Bucharest and plans

kets. “By continuously updating

to have more rebranded. “Regard-

to the market needs and trends,

ing its retail portfolio, Immofinanz

Immofinanz Romania is not only

has a strong presence on the

a valuable player on the market,

Romanian market, mostly repre-

but also a trend setter, considering

sented by the four VIVO! shopping

the modern and unique myhive

centers. We are closely monitoring

concept on the local market,” con-

consumer trends both on local and

cludes Dinu.

www.business-review.eu Business Review | March 2019

COVER STORY 15

Eyes wide open to future business opportunities Alexandru Lapusan is the CEO and co-founding partner of Zitec, whose mission is to help companies around the world innovate through digital transformation and automation, making use of emerging technology-based solutions and digital marketing services.

F

By Anda Sebesi

ounded 15 years ago,

for a volume of invoices with

the company now

a total value of up to EUR 20

counts over 160 team

million in 2019.

2018 was a challenging year

members, specialists in soft-

ware development and digital

both for Lapusan and Zitec,

marketing, working in two

given the tax changes impact-

offices in Romania: Bucharest

ing the IT sector in Romania.

and Brasov.

However, Zitec’s revenue went up 25 percent last year, to EUR

Zitec is also one of the main investors in the first Roma-

6 million, as the result of the

nian fintech platform – Instant

launch of Innovation Grants

Factoring – and in Zipongo, a

& Tenders, a new business

Silicon Valley-based company

line dedicated to helping its

in the health and nutrition in-

partners finance innovative

dustry, evaluated at over USD

projects and digital businesses.

100 million.

Throughout this business line projects with a total value

Instant Factoring, the first

of EUR 500,000 have been

Romanian online fintech platform for factoring, launched in April 2018, is a start-up co-founded

financed. Over the year, the Innovation Grants & Tenders team

by Zitec, functioning as an NBFI – non-banking financial institution.

managed to attract funds to finance six partnerships, including one

It offers a fintech solution that converts into cash any incoming

with the European Space Agency and one with the National Health

invoice with a pre-established value in less than 24 hours. It opens

Service in the UK, but also for its own products soon to be launched

the door for small entrepreneurs to have quick access to cash and

on the market.

differentiates itself through a very flexible and fast process made possible through the innovative technologies used.

Instant Factoring closed the year with a volume of over 1,500

Moreover, in 2018, Zitec became a Google National Partner, both in cloud and digital marketing services, and sole partner in the Atelierul Digital project, dedicated to small and medium companies

fundings, totaling EUR 2.7 million. The average amount of funding

all over the country in need of digital consultancy. Zitec Digital

for an invoice was approximately EUR 2,100 and the rate of under-

Consultants are present in six hubs across Romania – Iasi, Con-

performance in relation to the current exposure was less than 1.5

stanta, Brasov, Bucharest, Timisoara and Cluj – and met over 7,000

percent at the end of 2018.

business owners in 2018. More than 50 percent of them reported

In November 2018, Instant Factoring received EUR 1.5 million from a US investment fund. The attracted funds, together with the company’s own capital, will sup-

business growth after implementing digital strategies based on the consultancy services offered by Zitec Digital.

To Lapusan, freedom is the

port the expansion of its activity

most important personal value,

on the Romanian market, the di-

followed closely by family, while

versification of financial products

integrity, critical thinking, cour-

offered, as well as entry into new

age, authenticity and performance

markets in Central and Eastern

have the greatest impact on his

Europe. This will be done by de-

business thinking and the way he

veloping microfinance operations

leads his organization.

www.business-review.eu Business Review | March 2019

16 COVER STORY

Focus on sustainable and healthy organic growth For the past seven years, Ufuk Tandogan has been CEO and board member of Garanti Bank Romania, playing an important role in shaping a sustainable strategy for the bank.

H

By Anda Sebesi

e is also the chair-

to successfully deploy its busi-

man of the board of

ness strategy of developing its

directors of the two

client portfolio in a sustainable

non-banking financial institu-

manner. This strategy led to

tions within Garanti Group

obtaining a net profit, at Group

Romania: Garanti Leasing and

level, of over RON 140 million

Garanti Consumer Finance.

as of year end 2018. Moreover, Garanti Group posted an asset

Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB),

size of almost RON 12 billion at

Turkey’s second largest private

the end of 2018.

In recent years Garanti

bank. The Spanish financial group Banco Bilbao Vizcaya

Bank and Garanti Leasing have

Argentaria (BBVA) is the major-

signed important agreements

ity shareholder of TGB. Present

with international financial

in Romania since 1998, the

organizations, such as the

bank offers a series of products

International Finance Corpora-

and services for all business

tion (IFC) and the European

segments: retail, SMEs, and

Investment Bank (EIB), aiming

corporate. Garanti Bank has

to facilitate the access of lo-

been the 10th biggest bank in

cal businesses to finance, in

the system in recent years, growing in this position organically.

It has also been one of the pioneers of credit cards in Romania,

order to grow and make their contribution to the economy. Since Garanti Bank was the first bank in Romania to focus on the needs of

launching in 2007 Bonus Card, a unique credit card and one of the

women SMEs, a part of these loan agreements had a strong gender

most rewarding payment tools in the market, for both cardholders

component, being addressed to companies owned or managed by

and merchants. In 2010, the bank introduced WWF Bonus Card, the

women. On a different note, in 2018 Garanti Bank was nominated as

first eco-affiliate card in the country, through which it redirects 0.3

a Superbrand, distinguishing itself from over 1,500 brands analyzed

percent of the total value of transactions to the World Wide Fund

by Superbrands Romania.

for Nature (WWF Romania), thus giving clients the opportunity to

“We continue to have a long-term strategy in Romania, which

get involved in protecting local natural habitats, besides its own

can surely be regarded beyond the near future. Garanti Bank has

contribution.

been present here for over 20 years and, ever since the beginning,

As one of the most important digital players in the Romanian

we have targeted a healthy development of our market share. As

banking system, one of its main focuses in 2018 was the relaunch of

such, we will continue to diversify our products and services for all

the internet banking platform, Garanti Online, in an upgraded for-

market segments, depending on our clients’ permanently chang-

mat. As a recognition of the bank’s

ing needs, and we will be by their

good digital achievements, it was

side, as a trustworthy financial

awarded in 2018, by the world-re-

partner. Therefore, our focus

nowned magazine Global Finance,

will continue being on sustain-

as “Best Consumer Digital Bank

able growth and development,

in Romania”, this being the 11th

maximizing customer satisfaction,

award granted by this publication

and the digital upgrading of our

in the past ten years.

services,” says Ufuk Tandoğan,

In 2018 Garanti Bank continued

CEO of Garanti Bank Romania.

www.business-review.eu Business Review | March 2019

COVER STORY 17

Planning to develop his first project in Bucharest One of the most ambitious Romanian real estate developers is ready to reshape Bucharest in 2019, after building a national retail center network.

By Ioana Erdei

Romanian retail center

I

citizens of Timisoara will also

developer. The Iasi-based

be able to enjoy the largest sus-

entrepreneur made a big deci-

pended park in Romania span-

sion in 2018 when he sold half

ning on over 55,000 sqm of

of his shares in the Iulius malls

green spaces, as well as 4,050

in Timisoara, Cluj-Napoca, Iasi

underground and multilevel

and Suceava and the adjacent

parking spaces. The project

office buildings to the South

will cover a total of 594,000

African company Atterbury Eu-

sqm and Iulius Mall Timisoara

rope for around EUR 200 mil-

will be integrated in it. The

lion, according to estimates by

tallest building in Romania, 155

Cushman&Wakefield Echinox.

meters high, will be built in the

In addition to this, the

ulian Dascalu is the biggest

project, along with a 55,000

This new capital was put

sqm park.

into an investment fund cre-

For 2019, the business-

ated with the South African company in order to invest in

man also wants to expand his

Openville, an integrated real

business in Bucharest for the

estate project in Timisoara, and

first time. Dascalu has bought,

the development of the international Iulius Mall brand.

Per total, the Openville Timisoara project will include seven office

through a partner, a 10,535 sqm plot close to Romexpo, in the north of the city, where the developer Globe Trade Centre wanted to

buildings with a gross area adding up to over 130,000 sqm. Of these,

build a residential project before the global crisis hit. The transac-

18,000 sqm have already been delivered and fully leased, while

tion value is estimated at EUR 6 million. Dascalu has also signed an

another 13,000 sqm shall be completed this June.

agreement with Romexpo and bought some secondary expo build-

“The three new office buildings to be delivered within a 12 to 18 months’ term, along with UBC 2 (opened this January) and UBC 1

ings for EUR 3 million.

Iulius Group owns a national retail network of four shopping

(pending completion this summer), constitute the first phase of de-

malls under the Iulius brand in Iasi, Timisoara, Cluj-Napoca and

velopment of the Openville project and will shape the main business

Suceava and the urbanistic residential project Palas Iasi. The group

center in the west of Romania,” said Iulian Dascalu, Iulius Group

has also developed 58,000 sqm of A class office buildings nation-

CEO.

wide, with another 15,000 sqm under construction. Iulius Holding,

Iulius Mall Timisoara will undergo expansion work for an additional 60,000 sqm of retail premises, thus adding up to a gross

the company that subsumes all the firms that manages and develops the real estate projects of Iulian Dascalu, recorded an income of

leasable area of 131,000 sqm,

RON 833 million in 2017, 330 times

which will turn it into the biggest

larger than the figure published in

mall in Romania. On this segment,

2016. Probably the huge figure is

Openville will include 430 stores,

the result of the relationship with

restaurants and themed cafés,

south african investment fund

multiplex cinema, a fresh market

Atterbury, who bought last year

area, the largest playground for

half of Iulius real estate network

children and other leisure oppor-

of projects in Iasi, Suceava, Cluj-

tunities.

Napoca and Timisoara.

www.business-review.eu Business Review | March 2019

18 COVER STORY

Christina Verchere, OMV Petrom: Investors need stability and predictability Romanian OMV Petrom faces major challenges in 2019 as the economic, fiscal and legal environment is changed by new or higher taxes, delaying major investments.

C

By Ioana Erdei

hristina Verchere has

the requisite conditions are

been the CEO and

met. “The Black Sea is a huge

president of OMV

opportunity for OMV Petrom

Petrom, the highest-value com-

and also for Romania. But, to

pany on the Romanian stock

be able to move forward, we

exchange, since January 2018.

require a liberalized gas mar-

Her mandate expires on 21 May

ket, fiscal stability and key in-

this year.

frastructure. It’s an important project and we wish to move

Verchere, 47, has had a 20year career in the oil industry

forward with it. This is why we

at companies including British

will continue to negotiate with

Petroleum, where she was

the authorities in order to find

regional president and CEO of

the best solution. Investors

BP Canada Energy Group. She

need stability and predictabil-

graduated from the University

ity. We need to know the value of the fiscal bill, and to be ac-

of Aberdeen in Scotland.

In 2018, OMV Petrom Group recorded a net profit of RON 4.08 bil-

tive on a liberalized market,” said Verchere.

lion, up 64 percent from 2017, when it posted RON 2.49 billion, the result being helped by the upstream segment.

The value of consolidated sales in 2018 was RON 22.52 billion, 16

BIGGEST DONATION IN ROMANIA In February, OMV Petrom announced that it would provide record

percent higher than in 2017 due to the increase in commodity prices

sponsorship of EUR 10 million to Asociatia Daruieste Viata’s project

and the volume of electricity sales, partly counterbalanced by lower

to build the first Pediatric Oncology and Radiotherapy hospital in

volumes of sales of natural gas and petroleum products.

Romania. The hospital is being built without any support from the

Downstream oil sales accounted for 76 percent of total sales, sales from downstream gas for 22 percent, and upstream about 2 percent.

Investments worth RON 4.29 billion in 2018 were 44 percent higher

Romanian state, using only donations from civil society and the private sector.

The construction cost is estimated at EUR 16 million, and equip-

than in 2017. These included mainly upstream investments of RON

ment will cost another 10 million. Besides OMV Petrom, over 1,700

3.15 billion in 2018 compared to RON 2.44 billion in 2017. Due to

companies and more than 250,000 individuals have donated a total

fiscal and legal instability, the CEO of the company faces tough deci-

of more than EUR 15 million. “I think this is the largest amount ever

sions in 2019.

donated in Romania. We hope that private companies won’t be the

For this year, OMV Petrom has already said it will reduce investments due to legislative instability. The firm announced RON 3.7 bil-

only ones to contribute in the future, but also the Romanian state,” said Oana Gheorghiu, one of the founders of Daruieste Viata. Of the

lion of investments in 2019, mainly

EUR 10 million donated by OMV

in the upstream segment. “Our

Petrom, half will be used to pur-

priority is to maximize the value

chase medical equipment needed

of our upstream portfolio and we

to diagnose and treat cancer in

intend to reduce hydrocarbon

children: a radiotherapy machine,

production by 5 percent compared

a CT machine and operating room

to 2018,” said the CEO.

equipment, as well as materi-

OMV Petrom has also an-

als required for training medical

nounced that its offshore invest-

personnel. The other EUR 5 million

ment project in partnership with

will be used for plumbing, electri-

Exxon is to be postponed until

cal and interior design works.

www.business-review.eu Business Review | March 2019

COVER STORY 19

Spreading the healthy spirit With a focus on national expansion and increasing the number of its active members, World Class Romania, the largest health and fitness network in Romania, has big plans for the year to come.

2

By Anda Sebesi

018 was a year

rate packages were

of growth for

up by by 42 percent,

World Class, as

continuing to grow

the company started

and reaching revenue

the #BeHealthy

of over EUR 860,000

Movement, a collec-

also in February,” says

tive expression of

Orrgren.

According to

its new mission: to inspire, motivate and

him, the company’s

educate Romanians

strategy will remain

to be more active

the same in 2019,

more often in order

as the #BeHealthy

to enjoy a healthier,

Movement is growing

more fulfilled life.

significantly. “We will

The initiative took

continue to invest

place in Bucharest,

in expanding our

Cluj, Constanta and

network, refurbishing and renewing our

Timisoara during the #BeHealthy Festivals, attracting 10,000 participants. “We grew to

existing clubs. We kick started 2019 with yet another addition to our

almost 60,000 active World Class members, and 35 health & fitness

health & fitness network, the new World Class Tomis, which will be

clubs in strategic locations across Romania. We exceeded 1.5 million

the second in Constanta. For the summer of 2019 we have already

participants in our group fitness classes and reached a turnover of

opened subscriptions for the new World Class Record Park, our

EUR 28.5 million, 16 percent higher than 2017,” says Kent Orrgren,

fourth club in Cluj. Our strategy is to invest in prime Bucharest loca-

CEO at World Class Romania, about the company’s numbers. In 2017,

tions but also make investments in a second city with an objective to

World Class revenues rose by 34.7 percent versus 2016, reaching

become market leaders in that city,” says the head.

nearly EUR 25 million.

He adds that in 2018 the company acquired two clubs from local

At present, World Class is the largest health and fitness network in Romania and, Orrgren says, this position comes with huge respon-

competitors and turned them into World Class Titan Park and World

sibility. “We have been using our voice to share our message about

Class Eroii Revolutiei and opened two new clubs World Class Bucha-

the importance of healthy living through health,” he comments.

rest Mall and World Class Veranda. “We also announced the opening

The company has developed two communication campaigns,

of the largest health and fitness center in Romania the World Class

#BeHealthy and #BeHealthyWithMe, in order to raise awareness of

Openville in Timisoara and World Class AFI Tech Park, World Class

the benefits being active and healthy and get more Romanians to

The Record Park in Cluj and World Class Expo Park in 2019,” adds the

join the #BeHealthy Movement.

CEO. The company continued its partnership with The Color Run

“Our investment in acquiring existing clubs and adding them to

and the Bucharest Marathon and relaunched the World Class mobile

our network, as well as opening brand new World Class clubs, was

app, to provide better and faster communication with its members.

a strategic investment in our main objective: to make health and

“Our personal training packages reached EUR 4.1 million in 2018, a 25 percent increase on the

fitness services accessible to more Romanians,” adds Orrgren.

In order to communicate even

previous year, and more than EUR

better with the young generations,

3.3 million in evenue came from

World Class has also started its

personal training packages alone

#BeHealthy communication cam-

in 2017. In January 2019, corpo-

paigns in social media.

www.business-review.eu Business Review | March 2019

20 COVER STORY

UiPath, the Romanian unicorn, among ‘happiest companies’ in the world UiPath is the first Romanian company dubbed a “unicorn”, meaning a startup that has reached USD 1 billion in value, a tag it earned after it became the world leader in Robot Processing Automation (RPA).

T

By Aurel Dragan

he story of the com-

This was right after The For-

pany founded by Daniel

rester Wave: Robotic Process

Dines and partner

Automation, Q2 2018 report

Marius Tarca began in 2005

recognized UiPath as the leader

with a company named Desk-

of the worldwide market.

Over that changed its name to

In 2018, the company

UiPath in 2015. That year was

achieved over 5,000 percent

a turning point for the firm: it

growth compared to 2016

had found global partners for

and reached USD 200 million

Business Process Outsourc-

in annual recurring revenue

ing (BPO) and consultancy for

(ARR), which is a metric used

RPA. The first round of funding

by Software-as-a-Service (SaaS)

was received in the same year,

providers to reflect subscrip-

totaling USD 1.6 million from

tion revenues. In 2016, UiPath’s

three American investment

ARR was only USD 3.5 million,

funds, a round that took 14

but it rose to USD 150 million

months of negotiations and

in November 2018 and finished

was concluded in September, at Seedcamp Week in London.

“We are quite a unique case as we work with enterprise software.

the year on USD 200 million.

The company reached 800 employees in Romania and 1,700 globally in 2018 and managed to reach sixth place in the Comparably

Most of the companies that reach unicorn status come from the con-

2018 Culture Awards study in the “happiest companies” category,

sumer zone,” said Dines. The firm reached unicorn status in 2018, af-

outperforming big names such as LinkedIn, Facebook, Starbucks,

ter receiving financing of USD 153 million in a funding session led by

Red Bull and Adobe. “My dream was to build a company in which

Accel Growth Fund and supported by Kleiner Perkins Caufield Byers.

I want to work. I think the workplace should be the environment

At the time, UiPath could count about 200 large enterprises among

in which we develop, express our ideas, play and innovate. That’s

its customers, of which 30 percent were in the USA, 40 percent in

why we always make sure that employees at UiPath feel inspired,

Europe and the rest in Asia.

happy and involved, “says Dines. Recently, the firm opened a new

The company has grown rapidly in recent years: in 2017 it opened offices in Australia, France, Japan and Singapore and reached 400 employees. In Japan it has gained a strong foothold after opening

office in Cluj-Napoca, its second in Romania after its headquarters in Bucharest. It entered the Cluj market by acquiring the Smart Data AI platform from Recognos.

Being magical creatures, uni-

the Tokyo-based UiPath K.K. The

corns are very rare. According to

RPA solution fits perfectly with

TechCrunch, there are currently

the Japanese business style and

279 private VC-backed start-ups

is suited to the country’s ageing

valued at over USD 1 billion. Last

population.

year, only 60 new start-ups were

UiPath’s valuation climbed

added to the unicorn club, fewer

to USD 3 billion in 2018 after it

than the 66 that had joined the

received USD 225 million in a

year before and way behind the

new funding round from Sequoia

record-setting 2015, which brought

Capital and Google CapitalG fund.

99 newcomers.

www.business-review.eu Business Review | March 2019

COVER STORY 21

Druid, the software developer taking on Artificial Intelligence Liviu Dragan is one of the pioneers of the Romanian IT industry. In 1994 he founded TotalSoft, a software developer that was sold in 2016, and he now has a new company, Druid, which is developing a virtual assistant, a chatbot.

By Aurel Dragan

“

In 1994, a group

ers). The current share-

of software and

holders will reduce their

hardware experts

shares by offering a 15

founded a company, which

percent stake of the capital

in just a few years became

to some Druid employees

one of the largest Roma-

who will receive their

nian companies special-

shares for free, according

ized in software develop-

to statements made at the

ment and implementation

launch of the company.

The investment in

systems: TotalSoft. The development of the com-

Druid started with EUR

pany was explosive, with

1.5 million, of which EUR

an increasing turnover

800,000 was already

from USD 100,000 in 1995,

drawn at the midway point

to more than EUR 26 mil-

of 2018.

Druid, the software,

lion at the end of 2013,”

will use algorithms to

says Liviu Dragan.

analyze all existing busi-

TotalSoft and Charisma,

ness information in an

the name of the product, are brands that make a genuine business card for the Romanian

organization to provide a way of assisting in decision-making. It is a

industry in 46 countries across 4 continents. The company was

digital assistant that can be used both by employees and customers.

bought in 2016 by Logo Software Investment, the biggest indepen-

For example, employees will be able to find through the chatbot in-

dent software developer in Turkey, in a transaction worth over EUR

formation about their annual leave, find out when they will get paid,

30 million.

and trace their career development in the form of graphics. The

Dragan remained at the helm for one more year, but after leaving

platform will have available virtual assistants for customer support,

TotalSoft he didn’t retire. Instead he started a new company, Druid,

sales, technicians and the HR department, assistants scheduled to

an Artificial Intelligence software developer.

execute over 200 tasks. The first product will be provided to Banca

“In three years, I would like Druid to be the most beautiful story of artificial intelligence in this area of Europe. We’re aiming for a

Transilvania through a collaboration with UiPath.

Last year, Dragan obtained a financing round for Druid from two

turnover of EUR 10 million over the next three years and high profit-

individuals, a transaction that included 15 percent of the shares and

ability,” he said last year.

evaluated the company at EUR 5 million.

In setting up Druid, Dragan worked with several Romanian

Druid also won two prizes at UiPath’s Forward EMEA event in

businesspeople, including Radu

London in October: second place

Enache, shareholder of the

in the Global Hackathon category

Continental hotel chain, Eugen

and the Best Connector award –

Banciu, founder of Farmexpert,

with its Chatbot-RPA Integration

who also owns the Dona pharmacy

project, which gave UiPath robots

network, and Anca Vlad, of the

conversational capabilities and

Fildas-Catena group (who has just

added cognitive services to Druid

sold her share to the other found-

chatbots.

www.business-review.eu Business Review | March 2019

22 COVER STORY

Victor Costache: My 2019 goal is to drastically cut death rates among Romanian children with heart disease 2018 was a record year for the renowned heart doctor Victor Costache. At the end of August, he led a team performing a unique surgery that saved the life of a 77-year-old patient given a 2 percent chance of survival. The Academy of World Records made note of the surgery held in Sibiu.

A

By Ioana Erdei

s he explained, this

cialized in heart and thoracic

kind of intervention

surgery and is a member of

helps prevent the

the French College of Heart

opening of the thoracic cavity,

Surgery.

which would have had more

He surprised everyone

complicated post-surgery ef-

when he decided to return to

fects for the patient. “I believe

Romania. “I was very moti-

that any medical problem has

vated to come back to this part

a solution, and your vision as a

of the country where heart sur-

doctor is influenced by the in-

gery was poor. I recreated a lot

formation and experience that

of specialties from scratch,” he

you amass,” said Costache,

outlined. “I am very demand-

head of cardiovascular surgery

ing with the people around me

at Polisano Hospital, in Sibiu.

and I struggle to find time for

He is one of the few Romanian doctors that chose to

my family and hobbies.”

The doctor’s main goal

come back and practice in his

for 2019 is to start a quality

native country, after specializ-

national program for treat-

ing at top universities abroad, and practicing for ten years at leading

ing children’s heart diseases. “Around 1,000 children in Romania

hospitals in France, Denmark, Germany, the UK and Quebec. He has

die every year of heart disease. We are struggling to include the

worked with major figures in the field, such as Prof. Dr. Dominique

Polisano Hospital in Sibiu, which is the best equipped hospital for

Blin – the founder of the heart surgery department in France – Prof.

heart surgery in the country, in a national program for children. We

Dr. Phillipe Merloz, Prof. Dr. Jean Luc Magne, and Prof. Dr. Christian

have submitted several written pleas to the Ministry of Health and

Letoublon.

In November 2018 President

we are in constant dialog with the authorities in order to make this

Klaus Iohannis decorated the

happen,” Costache told Business

brilliant surgeon with the Order of

Review. Such a program would

Merit, Rank of Knight.

allow all children with heart

Costache’s grandparents were surgeons and he says he spent most of his childhood in hospitals.

diseases access to high-quality publically-funded treatments.

“In 2019, we also want to

He graduated from the University

attract additional funding for re-

of Medicine in Iasi in 1999 and

search into heart disease in Sibiu.

finished one year of residency in

In 2018 we attracted around EUR

Romania, then decided to move

3 million, through the Next Cardio

to France, where he started his

program,” he added.

residency from scratch. He spe-

www.business-review.eu Business Review | March 2019

COVER STORY 23

Dan Sucu: The goal for 2019 is to improve ourselves professionally With 2018 being one of its best years in terms of business expansion, Dan Sucu plans to open the biggest Mobexpert store in 2019 and expand the firm’s online sales.

M

By Ioana Erdei

obexpert Group had

growth in turnover in 2019. “We

a very good year in

keep our market share calculations

2018 both in terms of

to ourselves and we only calcu-

turnover and profitability, “even

late it in the cities where we have

though we were under major pres-

physical stores,” he stated.

sure when it came to expenses – all

The company is targeting

our costs had explosive growth:

building new stores in the big

utilities, salaries, loans, rents,” said

cities of Romania. “Cluj, Timiso-

Dan Sucu, the owner of the busi-

ara and Craiova are cities we are

ness, in a interview with Business

targeting at the moment. Unfor-

Review.

tunately, we’ve had to postpone

“Almost all of our activities

these moves due to the current

are profitable, and some are very

conditions in terms of land and

profitable – whether we’re talking

implementation costs, which are

about factories, retail, import

much bigger than we would have

or distribution – all of them are

liked them to be. They are still in

healthy again in terms of profit-

stand-by until we find an op-

ability, which was something we wanted to achieve and we are very happy about,” he revealed.

The company posted growth of 15 percent last year, “which is

portunity that is truly attractive for us. Constanta will probably be postponed until March,” he said.

“Compared to our initial estimations for new investments, costs are

extremely positive considering our turnover levels, but we don’t

at least 25 percent higher, even though our initial estimations were

expect 2019 to be of the same magnitude,” the entrepreneur said.

already larger than what we had been used to in the past.”

“We will continue to grow, but we must be aware that a large part of the recent growth has been based on the improved climate in terms

INTERNATIONAL EXPANSION

of purchasing power and the general increase in consumption.” Last

In the coming years, the businessman in interested in expanding

year, the company managed to double its logistics space and also

its empire abroad. “We are interested mostly in online expansion,

increase its online sales by 50 percent.

including on external markets. The online side is having explosive

“When there’s a growth of 5-6 percent in general consumption,

growth. By the end of next year, we’ll probably come close to an

we tend to double it. Since we don’t believe it’s possible for the mar-

average of 18 percent online sales. In some areas we’re already at

ket to grow again in 2019 by 6-8 percent, but we still target a 10 per-

20-30 percent,” he said. A new major investment in traditional retail

cent growth for ourselves, this growth must come from somewhere

on external markets is less interesting in terms of profitability. “We’d

else, and that means increasing market share,” he commented.

see better results in new countries on the online side,” noted Sucu.

The key for 2019, according to the entrepreneur, “is not going to be about linking ourselves to the general growth of the market, but

“We’re targeting countries in the region. We’re still evaluating whether we’ll enter these markets all at once or not. However,

about improving ourselves profes-

2019 and 2020 will be focused

sionally. The more experience

on strengthening our domestic

you have and the better you can

business. We expect to make the

do things compared to others, the

step towards other countries when

more you can grow.”

the share of online sales reaches 25-30 percent,” commented the

GAINING MARKET SHARE Sucu is hoping for a 10 percent

businessman.

www.business-review.eu Business Review | March 2019

24 COVER STORY

Marius Ursache – from digital advertising to innovating He should have been a successful plastic surgeon; however, at 17 he landed in media and advertising, and in recent years he has been a tech nomad.

I

By Romanita Oprea

n 1999, at only 22 years

of India, The New Yorker, BBC

old, Marius Ursache

and other outlets. Within 48

founded Grapefruit, one

hours, more than 3,000 people

of the top branding and digital agencies in Romania. In paral-

had registered on the website.

But Ursache didn’t stop

lel, he studied design in New

here. Besides Eternime, he

York at the Sessions.edu and

launched Metabeta, a portfolio

later on with Milton Glaser at

management suite for startup

the School of Visual Arts, com-

accelerators and early-stage

munication and PR at SNSPA

investors. It streamlines deal-

Bucharest and digital as part

flow and diligence, tracks

of his European Masters in

company metrics and port-

Interactive Multimedia.

folio performance, increases

He has won an impres-

the engagement of mentors,

sive number of international

partners, and alumni, monitors

awards, including the Brand

OKRs, etc; and The Disciplined

Leadership Award at the World

Entrepreneurship Toolbox, an

Brand Congress 2009.

online tool for entrepreneurs,

For the last twenty years, Ursache has worked in

based on the Disciplined Entrepreneurship book and frame-

healthcare, design, marketing, fintech, innovation consulting and

work (by Bill Aulet) used by startups at MIT. It allows entrepreneurs

Artificial Intelligence. He has founded four companies and an NGO

to follow a clear process to validate their ideas, and also allows

pursuing these interests. The latest one, Eternime, is a pioneer in

investors to track the progress of the startups have they invested in.

digital immortality and creates digital replicas of people based on

Therefore, for the past five years, Ursache has been working with

their digital footprint. In January 2014 Ursache was one of the 120

accelerators, investors and startups. “It’s time somebody did some-

people accepted into MIT’s intensive program for entrepreneurs.

thing better to allow startups to access funding faster, and investors

“It seemed the best opportunity to take the crazy ‘Skype with the

find better startups. After trying to patch together some systems for

dead’ idea to the next level and get onboard with the mavericks that

accelerators, we decided to build a new investment set of tools – a

could bring this absurd thing closer to being real,” Ursache wrote on

smart one,” he said, of the launch of Metabeta. Now, the team is

medium.com, explaining how the idea of Eterni.me came to be.

split between Mexico, Romania and India. He spends two to three

After choosing the team, the idea came closer to reality when the

months per year in San Francisco/Silicon Valley, another two or

founders turned it from an app to

three other months with custom-

reconstruct a dead person’s mind

ers and the rest at the company

from a minuscule digital footprint,

headquarters in Iasi.

into a tool that you could use

“The product, the strategy, the

for the rest of your life to collect

vision might change, but with a

all your thoughts, stories and

good team you can build anything.

memories. Soon after the launch

My life goal is to build things that

of the website describing the idea,

can impact (for the better) the

the Boston Globe picked it up and

lives of millions of people. That is

wrote about it, followed by CNN,

value for me, not a billion dollars,”

FastCompany, Wired, NBC, Times

concluded Ursache.

www.business-review.eu Business Review | March 2019

COVER STORY 25

Anca Dragu: We will install 11 electric car charging stations in 2019 Anca Dragu was appointed deputy general manager of E.ON Group Romania last month.

In 2016 she served as finance minister. She has also worked as chief economist at the IMF’s Romania office and as an advisor in the European Commission’s General Direction for Economic and Financial Affairs.

A

By Ioana Erdei

nca Dragu was appointed dep-

which will be dedicated to both house-

uty general manager of E.ON

hold and industrial clients – premium

Group Romania last month.

services at affordable costs in the shape

In 2016 she served as finance minister.

of a monthly subscription, with extra

She has also worked as chief economist

services included to provide extended

at the IMF’s Romania office and as an

eco-friendly mobility (charging equip-

advisor in the European Commission’s

ment such as boxes installed on walls

General Direction for Economic and

or lampposts, as well as non-stop

Financial Affairs.

installation, maintenance, support and

In her new role, her first in a private

monitoring services),” she added.

company, Dragu has ambitious plans,

Last year, the company focused on

including entering and having an im-

digitalization and new product devel-

pact on new markets such as electro-

opment.

mobility. “In 2019, I want E.ON Group

In December 2018, E.ON signed a

to focus on client and employee safety,

strategic partnership worth EUR 1.9

as well as on developing the best

million with Teraplast, which will

energy solutions. We want to continue

lead to the development of one of the

to invest in the upgrade of natural gas

biggest photovoltaic roof systems in

and electricity distribution networks,”

Romania.

she said.

E.ON recently inaugurated a new

“On the gas segment, we’ve invested RON 235 million (EUR 50.4 million),

electric car charging station in Iasi, part of the 19-unit series it has

and upgraded 441 kilometers of natural gas pipelines and connec-

planned to install in its NEXT-E project, which uses European funds.

tions. The network was extended by approximately 125 kilometers.

“We already have four operational stations (two of which are in Iasi

Around RON 252 million (EUR 54.2 million) was invested in the elec-

county), but this fifth station has a special meaning, because we can

tricity segment, with over 1,300 kilometers of upgraded electrical

see it as a starting point for the future ‘electric motorway’ that will

lines (network and connections). We’ve made over 260 new connec-

link Moldova and Transylvania, namely the cities of Iasi and Targu

tions and expanded our electricity network by about 155 kilometers

Mures,” Dragu told Business Review. She added that the company

to connect new consumers,” Dragu stated.

is planning to install a total of 11 charging stations this year. “Therefore, E.ON will install a total 19 charging stations of the 40 to be

In 2017, E.ON Distributie Romania, the gas and energy distributor, has changed its name in Delgaz Grid, as part of a rebranding process

developed in Romania through

that included the creation and pro-

the NEXT-E project. The following

motion of a new visual identity.

21 stations will be installed by our

The name change took place

consortium partner MOL Roma-

according to the internal and com-

nia,” she said.

munity legislation that requires

The spotlight will also be

the energy sector companies to

placed on household custom-

do a clear separation, including at

ers through the launch of new

visual identity level, between the

products. “We’ve been working on

supply and distribution operations

a number of e-mobility products

to avoid any confusion.

www.business-review.eu Business Review | March 2019

26 COVER STORY

eMAG, the online retailer that has become a marketplace for over 10,000 sellers eMAG, the online retailer and marketplace, is the second unicorn grown in Romania.

In December 2018, Naspers, its main shareholder, valuated it at USD 1 billion, a value reached after 17 years of existence.

e

By Aurel Dragan

MAG was started 18

sales event, now embraced

years ago, in 2001,

by most retailers. But it

a pioneer of the Ro-

also created a marketplace

manian online market. It

on its own platform where

has constantly invested in

any shop can register and

technology-based services

sell products. Over 10,000

developed in Romania to

publishers on eMAG

help customers save time

Marketplace account for

and money. Today it is

50 percent of the products

present also in Bulgaria,

sold through the platform.

Hungary and Poland,

The offer has reached 3.4

and with the help of its

million products.

To help sellers achieve

foreign branches managed to record sales of almost

better results, two new

EUR 1 billion in 2017 (RON

services were launched

4.06 billion), while the

last year: eMAG Ads

estimates for 2018 are 20

(eMAG platform) and

percent higher.

eMAG Academy (webinars, trainings and conferences

“I knew from the beginning that eMAG could

to help designers improve

grow into something big.

their strategy and perfor-

Since I joined eMAG I’ve been telling people that I wanted it to be a

mance). In 2018, eMAG invested over EUR 120 million, including in

billion-dollar business. They said, ‘you’re crazy’! We have too many

a new logistics center. With a surface area of 126,000 sqm, as large

problems! We were losing clients, services were not great, but a few

as 20 football pitches, and a capacity of 2 million large and medium-

things were very good: Radu Apostolescu, who created the brand,

volume products, the new space is the largest warehouse in South-

was a visionary, as he built it to be customer-oriented. Bogdan Vlad,

East Europe.

another founder, the one who built the back-end technology, also

”In all these years I’ve learned that the most important thing in

had a visionary approach. To their visions I added my knowledge of

every relationship, including the one you have with your custom-

finance and leadership. The major growth is mainly due to the fund-

ers, is to keep all the promises you’ve made. Success comes when

ing that eMAG has received. We

people trust you, and that’s why

got USD 200 million from Naspers

every decision you make should

in exchange for a majority share

honor your customers’ trust. I’ve

package. You can do a lot of things

also learned that people like to

with this kind of money,” said

have a lot of choices, so it’s vital

Iulian Stanciu, CEO and minority

for your business to offer them a

shareholder of eMAG.

wide range of products, multiple

The company has been respon-

payment and delivery options, but

sible for many firsts in Romania

it should also be very simple for

over the years. The most famous

them to use all of these features,”

is Black Friday, the November

said Stanciu.

www.business-review.eu Business Review | March 2019

COVER STORY 27

Difficult, decisive year for Black Sea mega project Richard Tusker has been the lead country manager of Exxon for the past years.

The company has been present in Romania’s upstream sector since November 2008, when it acquired an interest in the deepwater Neptun Deep block in the Black Sea, and has had an established downstream business since 1992.

D

By Ioana Erdei

uring

or industrial users.

2009-2010,

The move discour-

ExxonMobil’s

ages investments and

Romanian subsidiary,

increases the share

ExxonMobil Explora-

of imported natural

tion and Production

gas to 50 percent by

Romania Limited

2030 from 10 percent

(EMEPRL) acquired

currently, according

more than 3,000

to ROPEPCA, the asso-

square kilometers of

ciation that represents

3D seismic data over

energy companies in

Neptun Deep Block

Romania, including

using state of the art

Exxon.

In July 2018, the

technology. In March 2012, Domino-1, the first deepwater well

company announced that the amount that

in Romania, located 170 kilometers offshore in water about 1,000

could be extracted from the Black Sea offshore site, Neptun Deep pe-

meters deep, confirmed the presence of natural gas. Further, in

rimeter, is 6.3 billion cubic meters per year. This amount of gas rep-

2013, EMEPRL completed a seven-month 3D seismic study covering

resents more than half of Romania’s current gas production, which

approximately 6,000 square kilometers in Neptun Deep Block — the

is about 11 billion cubic meters per year. In December 2018 a new tax

largest seismic program ever undertaken in Romania. In January

ordinance was issued by the government, postponing any further

2016, they successfully completed the most ambitious exploration

announcements regarding the start of exploitation of resources in

drilling campaign in the Romanian deep water sector of the Black

the Black Sea. Initially, ExxonMobil and OMV Petrom estimated that

Sea which included in total seven wells drilled with exemplary

they would make the final investment decision on the gas fields in

safety and environmental performance and fulfilling all minimum

the Neptun Deep block in the Black Sea in 2018. The analysis of the

work program obligations.

commercial viability of fields in in full swing and actual production

The past couple of years have been difficult in terms of legisla-

could begin in the next decade. So far, ExxonMobil (leader of the

tion. 2018 was a difficult and challenging year for the company as

consortium) and OMV Petrom have invested over USD 1.5 billion in

Parliament approved an offshore law that directly affects the com-

prospecting, drilling and data interpretation in the Black Sea block.

pany’s major investment in the Black Sea. Oil companies, including

Investments are high because drilling is executed in deep waters and

Exxon, have expressed concern

the cost of a deep water well is up

about the new offshore law, saying

to a hundred times higher than the

that it may discourage new invest-

cost of onshore drilling. This year,

ments in the Black Sea. Also, a

the company received a construc-

new ordinance issued in December

tion permit from the country’s

brought a new tax on assets for

energy ministry for an offshore gas

energy companies. The ordinance

project, but it said new taxes could

also caps the natural gas price at

make it hard to go ahead with the

RON 68 (EUR 14.6) per MWh for

development.

gas sold to Romanian residential

www.business-review.eu Business Review | March 2019

28 COVER STORY

High investments and focus on organic growth FAN Courier, the leader of the Romanian courier market, celebrated 20 years of activity in 2018, having reached a turnover of EUR 145 million and 6,150 employees. 2018 also saw its highest level of investment, EUR 27.5 million.

By Aurel Dragan

T

he company founded

above this year’s results, which

21 years ago is still 100

will amount to about EUR

percent Romanian,

145 million. Investment plans

the shareholders being Felix

include continuing the de-

Patrascanu, Adrian Mihai and

velopment of hubs across the

Neculai Mihai. It has been the

country, which will lead to a 10

leader of the courier market

percent increase in headcount.

for the last 12 years, in a mar-

“We appreciate that the

ket worth EUR 500 million.

courier market is maintain-

The firm has made invest-

ing its growth trends, and

ments totaling EUR 135 million

e-commerce remains the main

over the years, while FAN

engine of our industry. Black

couriers have travelled as far

Friday, our biggest discount

as the distance between Earth

campaign, is constantly

and Mars, over 232 million km.

demonstrating Romanians’

In 2018, the most important investment made was the sort-

appetite for online shopping.

This year, the campaign ex-

ing strip of the new hub in Stefanesti, near Bucharest, which accel-

ceeded the initial estimates, but we believe that, as far as our role in

erates the level of activity automation during a labor crisis that has

the supplier-client relationship chain, this year, we met the quality

affected the entire economy. “We are in a workforce crisis that has

standards we promised,” said Patrascanu.

also been caused by us, the companies. There were a lot of people

At the end of 2018, FAN Courier had over 6,150 employees, most

knocking on the door who wanted a job in the past and we thought

of them in Bucharest (46 percent of the total). Trying to compensate

it was always going to be like this. But the crisis taught us how to

for the lack of qualified workers, the company opened, last year,

treat people,” said Felix Patrascanu, CEO of FAN Courier.

FAN school. “We have finished the first pilot project for which more

In the first half of 2018, the company included in its fleet the first electric cargo-bike, intended for use in the exclusive pedestrian ar-

than 200 people have signed up, and the first trainee who completed the course and obtained a driving license has recently joined

eas of Bucharest and later in other

our team of couriers,” Patrascanu

major cities. It also introduced a

added.

smart ticketing application, de-

In order to make the job more

veloped in-house. The tools allow

popular, the company had a

customers to record notifications

campaign about what it means

or requests directly from SelfAWB,

to be a courier. Short films were

to make changes to the AWB (the

made named ‘Hard to Delivered’,

transport document) after picking

‘Sacrifice Couriers’ and ‘Delivery:

up the shipment, and change the

Impossible’. The campaign was

payee’s data, recipient’s phone

named ‘Courier in Action’ and

number etc.

includes an online game that has

For 2019, FAN Courier maintains its growth forecast, with estimates of reaching 15 percent

gathered 60,000 players in the one month.

www.business-review.eu Business Review | March 2019

COVER STORY 29

Focus on becoming a market leader Banca Transilvania is a success story of a Romanian-owned bank that has managed to successfully survive the crises over the years and become, in 2018, leader of the local market by the value of the assets.

S

By Aurel Dragan

ome 25 years ago, 46 entre-

Banca Transilvania Financial

preneurs founded Banca

Group’s assets reached RON 77.9

Transilvania. Today it is the

billion at the end of last year and

largest financial group in Romania

the loans and advances granted to

with over 31,000 shareholders, as

customers rose to RON 38.02 bil-

it is listed on the Bucharest Stock

lion. The group’s net consolidated

Exchange (BVB), with equity of

profit was RON 1.26 billion, out of

EUR 1.5 billion.

which Banca Transilvania record-

“With entrepreneurship in its

ed a bottom-line result of RON 1.22

DNA, through work, enthusiasm

billion, including the Bancpost

and investments in people, tech-

integration expenses. The bank’s

nology and infrastructure, BT has

operating profit rose to RON 1.8

grown from a team of 13 people to

billion due to the streamlining of

a financial group with over 10,000

activities and business consolida-

employees in 500 branches, in

tion. Customer deposits reached

over 180 cities spread across three

RON 65.16 billion, of which RON

countries. From the first customer

43.34 billion are individual depos-

to over 3 million customers, of

its and RON 21.82 billion corporate

whom 700,000 are borrowers.

deposits.

From the first transaction to over 2 million transactions that take place daily through the bank. From

BT Pay, the first wallet application in Romania, launched in January 2018, currently offers 12

the first business customer, to the creation of the largest supporting

different functionalities developed over a 10 month-period, as well

ecosystem for SMEs in Romania. During turning points, the bank has

as many nonstop cash and card management functions: contactless

reinvented itself, adapted to the context and moved on,” said Omer

payments, money transfer, monitoring and reports on card transac-

Tetik, CEO of Banca Transilvania.

tions, etc. The number of payments on mobile devices and the num-

For the lender, 2018 brought further responsible organic growth,

ber of money transfers between wallet users picked up by 35 percent

major investments in the customer digital experience, Bancpost’s

in Q4, 2018, compared to Q3, 2018, while the volume of transactions

integration and the outset for business model replication in Victo-

increased by 50 percent. Banca Transilvania has a 3.7 million-card

riabank, the Republic of Moldova. Besides the merger and integra-

portfolio, meaning a 21 percent market share in terms of cards issued

tion between Banca Transilvania

in Romania, of which 475,000 are

and Bancpost, BT Leasing merged

credit cards. Through the bank,

with ERB Leasing, a company

in 2018, 2 million transactions

purchased from Eurobank Group,

were performed on average every

along with Bancpost and ERB

day. The number of BT24 Internet

Retail Services. BT Direct and

Banking users exceeded 1 million,

ERB Retail Services, non-banking

up by 14 percent, and the number

institutions and consumer finance

of Mobile Banking users reached

companies, will merge in the first

560,000, up by 34 percent.

half of 2019.

www.business-review.eu Business Review | March 2019

30 DIGITAL ADVERTISING

Facebook – 15 years of changing the digital industry game With 2.3 billion active users worldwide, double the number in 2012, including 9.6 million in Romania, Facebook is celebrating 15 years of activity and changing the media landscape forever. Those users spend an average of 20 minutes on a session and come back eight times a day, bringing Facebook the biggest success of all the social networks and a 39 percent increase in profit in 2018, compared to the previous year.

By Romanita Oprea

In 15 years Facebook succedeed in changing the face of the media landscape worldwide

O

In her turn, Elis Iaia Frunzeanu, head of

n February 4 2004, Mark Zucker-

head by Facebook, is the democratization of

berg, Mark Dustin Moskovitz, Chris

technology. “For better or worse, it has given

strategy at Publicis Romania, considers that

Hughes and Eduardo Saverin an-

unparalleled access to information to almost

Facebook has expanded agencies’ work. “We

nounced the creation of Facebook, then The-

everyone around the globe. We can easily say

didn’t have social media experts and social

facebook. As the platform’s success started

that Facebook has not only changed the digi-

media-driven campaigns before it. Although

to grow, Zuckerberg dropped out of Harvard

tal industry but, in many parts of the world,

we could have worked on platforms like Hi5

and moved to Palo Alto, California, to work

it has become the very face of the internet.

and MySpace. Today’s understanding of

on his creation full time. The digital world

An interesting effect that Facebook has had

digital communication is very much linked to

has changed drastically over the last 15 years,

on technology comes from the humongous

social media. And by social media, everyone

with the changes in technology coming hand

number of people that use it. Because of this

understands Facebook first. Because that’s

in hand with Facebook’s desire for novelty

huge number, an unprecedented amount of

where the big numbers are. Facebook was

and innovation. According to Flavian Cristea,

content, personal and business information

a game changer for advertising. It put social

digital strategist at Grapefruit, the biggest

has been created, distributed, exchanged,

media in the brand ecosystem and in the

merit of social media, an industry spear-

streamed and deleted,” said Cristea.

media mix. And its role has grown to the

www.business-review.eu Business Review | March May 2016 2019

DIGITAL COVER ADVERTISING STORY 14 31

point where some brands gave up on all other

made selling digital projects easier. “When

their trust in brands. “Facebook is important

channels and focused only on their Facebook

your clients are already part of the digital me-

in terms of reaching large audiences with

voice. A few even made their fortunes there,”

dium, interacting with various types of digital

the brand message. But it is no longer the

said Frunzeanu.

experiences, it’s way easier to help them

best platform for engagement – at least, not

relate to their potential digital consumers

for all demographics. Some segments have

raised consumers’ expectations in terms

and clients. Facebook and other big players

already moved elsewhere. If you want Gen Z,

of brand availability and content. Angry

have transformed the digital landscape from a

maybe Facebook is not enough and brands

consumers will go to Facebook first to make

geeky, niche, high-entry marketing opportu-

should consider the platforms where kids

a complaint and expect to speak to a real per-

nity into an easier, desirable and accessible

won’t bump into their parents – TikTok and

son who will fix the problem instantly. Others

experience for all,” said Cristea

Snapchat. If you want to engage Millennials,

Moreover, she added that Facebook has

want to be inspired, entertained or educated

But, as Publicis’s head of strategy points

Instagram is a more suitable platform. So it

by brands. Some want to get the news first.

out, many clients have unrealistically high

all depends on the objectives and the audi-

And some just want to be left alone, unless

expectations from Facebook these days. “And

ence. By forcing brands to put money behind

there is something really relevant and inter-

that is due to the glory days when Facebook

everything they post, Facebook is pushing

esting to be told. So, “brands must adapt. Not

was a free connection and engagement

for better content and smarter targeting. Less

only to consumers’ expectations, but also to

channel. Some clients still see Facebook as a

frequent, but smarter content should be the

the system, as Facebook is constantly chang-

loyalty platform or as a highly engaged brand

new norm,” said Frunzeanu.

ing its rules of engagement. Now brands de-

community.” But, it’s important to know and

And just as social networks are changing

liver more and better content than ever. And

understand that the social media landscape

in order to get closer to their fans’ desires and

Facebook algorithms had something to do

has changed. In 2019, Facebook remains the

expectations, so are the digital industry and

with that,” commented the Publicis Romania

most powerful social network for Romanians,

agencies. “I think the digital advertising in-

representative.

where 94 percent of urbanites have an ac-

dustry in Romania is made up of really smart

count, according to Romania’s Digital Market-

individuals who are waiting for a real business

CHANGING THE ENVIRONMENT AND THE CLIENTS

ing Report, compiled by the marketing reach

challenge to tackle, with an adequate budget

company iSense Solutions. Furthermore,

to match it. We played it safe for a very long

So how has it changed clients and their per-

79 percent said it was their favorite social

time, and made small investments in digital,

spective on digital in Romania? According to

network in 2019. And 9 out of 10 Romanians

but I think that it’s time to really invest in this

Cristea, the adoption of Facebook in Romania

are influenced by social media regarding

medium” concluded Cristea.

www.business-review.eu Business Review | March 2019

32 TECHNOLOGY

Murielle Lorilloux, CEO of Vodafone Romania: ‘We hope to be able to invest more in technology and customer experience’ Vodafone Romania recently organized a concert by rock band Vita de Vie, which marked a premiere in Romania: the first live hologram implemented with 5G technology, provided by the mobile operator. In a year when 5G is shaping the agenda for the local telecom industry, Murielle Lorilloux, CEO of Vodafone Romania, talks about the company’s preparations for the future 5G reality, and investing in innovation and digital transformation aimed at continuously raising the bar in network and service quality.

By Aurel Dragan maintaining existing customers and gaining new ones is less and less about money and more about the value they obtain for the money they spend.

We have a dedicated team of professionals in this area, whose job is to anticipate these needs while being fully compliant from a GDPR point of view.

Digitalization is a continuous journey that covers several areas. At the offer portfolio level, we have launched several innovative products and multiplied digital sales by three.

Our Shake app, for instance, aimed at under24s, is now among the four most downloaded applications. Another example is our Mystery Box concept, based on gamification. This is an invitation launched to our customers that encourages them to transform everyday challenges into a fun experience, a concept that has created a high level of engagement. We are talking about digital campaigns and digital

One of the most important projects of last year, which is ongoing, is the UPC Romania acquisition. How is the process taking place, and what stage has it reached?

consumers and businesses to benefit from

care. We have developed a new gamification

this change.

module in our My Vodafone App for prepaid service customers.

proval by the European Commission. Regard-

Convergence is one of your top three strategic priorities. What about big data and digitalization?

ing our convergence targets, one of our top

Our focus on big data and AI is an extended

business priorities, we are on track.

process taking place at the level of both our

Following the completion of the UPC integra-

teams and offer portfolio. We are using this

tion process, Vodafone Romania will be a fully

area to design personalized offers for our

Last year, Vodafone Romania insourced call-center services and announced a hiring process targeting up to 1,000 people.

How many people have been attracted so far and how is the call center functioning now?

integrated telecommunications company. We

customers and, in this way, we have managed

We have concluded the insourcing process for

see this transformation as a future catalyst for

to increase the number of personalized offers

call centers, which involved over 700 people

further innovation in terms of both network

suggested to our customers from 7 to 10.

in Bucharest, Brasov, Craiova and Pitesti who

quality, following further investment in speed

We are continuously improving systems

were welcomed to the Vodafone Romania

and quality, and services, in terms of conver-

to process AI in order to better understand

team. Our belief is that customer service goes

gence, bundle configuration, access to content

customers’ needs and offer them products

beyond price and core support. It is about

across multiple platforms etc. We expect both

that fully respond to their demands. Today,

trust, quality interaction and reliability. We

The project is now subject to review and ap-

www.business-review.eu Business Review | March May 2016 2019

COVER TECHNOLOGY STORY 33 14

therefore decided to invest in order to bring

VR, games and IoT solutions. 5G is the new

whilst providing increased penetration. We

these teams back in house. This move trans-

enabler for many industries and gives compa-

have launched the first live NB-IoT network in

lates into a more dedicated customer support

nies the opportunity to review their business

Romania with countrywide coverage, which

and ultimately allows us to ensure that we

models and aspire to a better future.

consolidated our leadership position on IoT market solutions.

always achieve our objective of providing the best experience to our customers. At the same time, we are continuing an active

In what other technologies or innovations does Vodafone invest (AI, IoT, blockchain)?

recruitment process for our IT & digital areas.

We continue to invest in IoT. Vodafone has

Our teams are continuously transforming,

always been a partner for customers, helping

How has mobile data consumption evolved in recent years and how do you predict it will change after 5G implementation?

within a natural process designed to achieve

them succeed in a digital world by making

We have been witnessing a very fast increase

our key priority of digitalization. Our invest-

technology and innovation serve companies.

in data consumption and expect an exponen-

ments in the recruitment process and the

For instance, our IoT smart solutions help

tial evolution over the coming years.

right learning and development process for

retail companies succeed in their digital trans-

our people also aim to make a real difference

formation journey.

for our customers and communities.

We are going through a Vodafone culture

Recently, we launched the first Smart Su-

5G technology will be the new enabler for many industries and for this exponential growth in data traffic consumption. It will

permarket concept in Romania. This compris-

offer businesses across various economic

change that involves the development of in-

es nine fully functional IoT retail solutions

fields the opportunity to review and improve

house programming teams. We are expanding

that help the retailer to identify customers’

their business models. We are supporting the

our teams of developers in order to be more

needs and understand their behavior in order

development of IoT services that will reshape

agile in responding to our clients’ needs.

to increase efficiency, customer satisfaction,

several sectors and build the success of busi-

and offer an improved shopping experience.

nesses from key fields. They will be critical

We plan to consolidate our position as employer brand leader in the industry by having

We can also mention our success in Nar-

for sectors such as automotive.

the best team able to execute our strategy,

rowBand-IoT, a wireless network technology

VR also creates a fantastic opportunity,

and continuing to attract the best talents and

specifically for connecting devices with low

another area that makes us say that the future

people with the right mindset.

bandwidth requirements, using low power

is already present.

5G licenses should be launched this year

by ANCOM. How have you prepared Vodafone for 5G? Have you already made investments or launched test projects?

We recently organized the first concert that integrated a live hologram made possible by 5G technology provided by Vodafone Romania. The protagonist of the live hologram sequence was a talented 10-year-old guitar player, who was participating in his first real performance in front of a large audience. This solution for his appearance at the concert, brought to life with our 5G technology, helped him fully connect with the public, despite his stage fright. We proved the future is already present.

In the context of the upcoming license auction, investment in 5G will be about pricing and technology. We hope to be able to invest more in technology and customer experience. In terms of timeframe, the key debate will be how ready the whole ecosystem is for 5G, from the points of view of customer needs. We shall continue to invest in our network, in 4G technology. We see 5G as an enabler for a lot of data traffic. The advantages that this technology brings, especially the low latency, opens great perspectives for AI,

Global leader in IoT with 80.9 million connections Vodafone, the global leader in IoT with 80.9 million connections, has announced the findings of its latest IoT Barometer. Surveying 1,758 businesses worldwide, the Barometer finds that more than a third (34 percent) of businesses now use IoT and that 70 percent of these adopters have moved beyond the pilot stage, while 95 percent are seeing the benefits of investment in this technology as it moves into the mainstream.

While use cases for IoT are varied, ranging from medical exoskeletons to connected tyres, the research has found that IoT impacts businesses regardless of size and sector. Sixty percent of businesses that use IoT agree that it has either completely disrupted their industry or will do so in the next five years. Eighty-four percent of adopters report growing confidence in IoT, with 83 percent enlarging the scale of deployments to take advantage of the full benefits.

The most advanced companies have also seen the greatest return on investment in IoT. Eightyseven percent of those at the top level reported significant returns or benefits from IoT, compared to just 17 percent at the “beginner’s” level. These benefits breed increasing reliance on IoT. Seventy-six percent of adopters say IoT is mission-critical. Some are even finding it hard to imagine business without it — 8 percent of adopters say their “entire business depends on IoT”.

In Romania, Vodafone has implemented IoT solutions for companies in areas such as retail, energy and utilities, automotive, transport and logistics. In 2018, the company launched the first live NB-IoT network in Romania with countrywide coverage, to let its enterprise customers develop and implement a wide range of solutions and applications to improve their business processes.

Vodafone Romania provides IoT solutions for companies from various industries. Recently the operator launched cutting-edge solutions for retailers designed to accelerate their digital transformation journey with a direct impact on improving business efficiency and customer experience. Vodafone Business, the new brand philosophy for enterprise, reflects the operator’s role as a trustworthy partner to deliver business solutions and the best expertise for companies’ digital success.

Vodafone Romania’s IoT smart solutions portfolio for retail includes a wide range of dedicated solutions, including Vodafone Smart Counting, Vodafone Digital Media Signage & Smart Analytics, Vodafone Heat Map, Vodafone Stock Alert, and Vodafone Queue Management.

www.business-review.eu Business Review | March 2019

34 BUSINESS

Serghei Bulgac, CEO of Digi Communications: ‘We invested nearly EUR 2.5 bln in the last decade’ 2018 turned out to be a positive year for Digi Communications, despite the turbulent environment. With revenues and profit up by 13 percent, the company stuck to its investment plan for the period. BR talked to CEO Serghei Bulgac about the business’s recent evolution and the company’s plans.

By Aurel Dragan

How did turnover and profit fare in 2018?

What estimates do you have for 2019? tations for both the financial and commer-

What is the value of investments in recent years? How much of the Romanian network is covered with fiber optics and what investments have been made in the 4G?

cial performance. The telecommunications

Over the past 11 years, we have invested

company’s consolidated revenues exceeded

nearly EUR 2.5 billion in the most revolution-

the threshold of EUR 1 billion last year, up by

ary technologies in electronic communica-

Your share price on the Bucharest Stock Exchange has been declining since your shares launched. What do you think is the reason for the negative trend? The bond issue of January 2019 was supplemented; how do you explain the success of the bonds while the stock price has dropped?

13.3 percent compared to the previous year,

tions, focusing in particular on increasing

The Digi Communications listing was received

which is a reason for pride for our teams in

the penetration of the fiber optic network in

with enthusiasm by the market, but the fur-

Romania, Hungary, Spain and Italy. Another

Romania and Hungary. In 2018, investments

ther development was less predictable, a situ-

key indicator for us and the telecommunica-

were up nearly 15 percent over 2017, reaching

ation that is too little related to the company’s

tions industry is EBITDA (operational profit),

EUR 280 million. The fiber optic network cur-

results and activity, although they rose.

which in our case grew by almost 13 percent

rently covers about 73 percent of households

Throughout 2018, the stock market evolution

to EUR 324.6 million. The good results come

in Romania and 47 percent of those in Hun-

of Digi shares was predictable if we look at

as our number of customers increased by 1.7

gary. Currently, in Romania, the DigiMobil 3G

what is happening in other capital markets in

million on the four markets where we oper-

network covers 99 percent of the population,

the region and in Europe and especially in our

ate, and reached almost 15 million at the end

while the 4G network has reached 61 percent.

industry. We would have liked to have had a

of last year. We want to keep our rhythm of

In Hungary we plan to launch mobile services

more stable economic and political environ-

growth in 2019.

this year.

ment, especially in recent months, to help

For the most part, 2018 confirmed our expec-

www.business-review.eu Business Review | March May 2016 2019

COVER BUSINESS STORY 35 14

capitalize better on the good results achieved

Last year we continued consolidating the

Therefore, our remuneration policy is also

at operational level. Legislative and political

Romanian market, maintaining our leader-

guided by the evolution of purchasing power

uncertainty has left its mark on the environ-

ship position on the fixed TV and internet

on the main market, Romania, with a focus

ment as a whole and has had repercussions,

cable segments, completing the acquisi-

on ensuring the right relationship between

including on the stock exchange.

tion of Invitel, in Hungary, launching fixed

the wage burden and rewarding employees’ efforts.

On the other hand, the company enjoys

services in Spain and the recent bonds issue

the confidence of investors in international

on international markets, that I have already

markets, and this is evidenced by the recent

mentioned, successfully completed and at-

bond issue, which attracted EUR 200 million,

tracting EUR 200 million from investors. The

Do you plan to participate in the 5G auction?

compared to EUR 125 million, the amount we

launch of mobile services in Hungary and the

Since December 2018, the economic and leg-

offered in the initial announcement. Digi has

continued expansion

islative environment

attracted more than EUR 1 billion through

of the fiber optic

has been marked by

bond issues on international markets since

network and the 4G

ever growing unpre-

2013. It is a success for a Romanian company,

network in Roma-

dictability. There are

as an entrepreneurial initiative, in a very

nia are two of the

still many unknowns

dynamic and competitive field.

major projects along

about the general

with the increase of

climate, both in Ro-

How is business going in the foreign markets where your company is present?

What are the plans for these markets?

synergies between

mania and on the

the two countries

markets of interest

In Hungary, growth was supported by the

of frequency auctions.

and the preparation

for our company, and this makes it impossible to give a short answer. In fact, the whole market is in “wait

integration of Invitel, a local operator whose acquisition was completed last year. Revenue

internet segment, Digi had 470,000 subscrib-

How is the company handling employee retention during this time when labor is limited? What is the average salary within the company and what benefits are offered to employees?

ers at the end of 2017 and it reached 700,000

Fortunately, the company has a very good

generating units (RGUs or subscribers) for the Digi branch (including Invitel) increased from 500,000 subscribers to 700,000. In the fixed

and see” mode, as are we.

A glance over last year’s financial results shows that mobile communications represents about a third of total revenue. In the future will you focus on expanding these services? What are your plans for fixed internet and cable / satellite TV?

RGUs on December

retention rate, and

31, 2018. In the

its human resource

landline segment,

needs are mainly

the number of users

provided by internal

tronic communications show an increase in

almost doubled,

company mobility.

the public appetite for mobile services and

reaching 700,000

The salary level

Recent developments in the field of elec-

high-speed connections, which allow access

subscribers from

is in line with the

to complex content. We expect our audience

379,000 a year ago.

industry as a whole,

to be on the same path, and consequently in-

with small varia-

vestment and development projects will take

tions based on field

into account the convergence of services and

Spain and Italy also had four growth quarters, registering around 1.5 million sub-

specialization, seniority and experience. In

the growing need for high-speed internet and

scribers by the end of 2018, up 36 percent on

2018, according to the National Statistics

unlimited connectivity. As our slogan says,

the previous year. Digi Spain has positioned

Institute, the average net salary on the tele-

we are “unlimited” to customer aspirations

itself as the market leader for MVNOs (virtual

communication market ranged between RON

and our plans will follow their needs.

mobile phone operators) over the past year.

2,800 and RON 6,000 net for an engineer. Sal-

The last month of the third quarter also

aries within the group fall within this range,

marked the launch of fixed services on the

with the differences mentioned above and

What is the company’s position on OUG 114/2018?

Spanish market. For the time being, in these

the fact that remuneration differs according

We maintain our position from January on

markets, the main objective is to continue to

to position and post.

these tax measures. Government Emergency

grow, both inside and outside the Romanian

Our pay policy is prudent, deriving from

communities, and to achieve a robust reputa-

the company’s strategy – accelerated growth,

development of Romania’s electronic com-

tion for newly launched services.

top quality services at the most affordable

munications and energy sector, as the tax

prices, tailored to customer purchasing pow-

burden on operations in these sectors signifi-

er, service-driven convergence, proprietary

cantly increases without proper consultation

content, and value-for-money complemen-

and without any serious justification, thus re-

tarity of electronic communications services.

stricting investment and affecting customers.

What projects did the company launch last year and what are the projects selected for this year?

Ordinance 114/2018 is unfavorable to the

www.business-review.eu Business Review | March 2019

36 BR AWARDS

Business Review Awards – praising the stars of the Romanian economy Over 120 nominees and 46 finalists will be competing in 14 categories at this year’s Business Review Awards, BR magazine’s flagship event that recognizes the outstanding achievements of the business community.

By Anda Sebesi

Ilinca Paun

Florian Nitu

Oana Gheorghiu

Carmen Uscatu

Serban Roman

Dragos Gheban

Franz Weiler

Cristian Nacu

Dan Balotescu

Horatiu Florescu

T

Dragos Tuta

hese are the main figures from the 14th year of our competi-

Leader of the Year category into two subcategories: Best CEO of SMEs

tion, which celebrates the most dynamic entrepreneurs, execu-

and Best CEO of Large Companies.

tives and companies that have continued to innovate and bring

new products and services onto the market.

And the power of the independent jury is one of the Business Re-

As the entrepreneurial spirit is flourishing in Romania now, we also opted to divide the Best Startup category in two subcategories: Best Startup in the Service Industry and Best Startup in Manufacturing

view Awards’ key assets. Every year, previous winners have the chance

Industry. The highest number of candidates (29) was recorded in the

to join the team of jurors that carefully assesses and determines who

Best Community Development Initiative, where both multinationals

will triumph in each category.

and Romanian companies on one hand and NGOs on the other pre-

Business Review always works with the jury to make sure that the

sented the best programs through which they helped their communi-

criteria and categories closely reflect the latest developments on the

ties last year. Some 15 application forms were received from local and

local and international markets.

multinational companies, and a further 14 from NGOs.

This year, two new categories – Best Financial Partner for SMEs

Companies with Romanian capital made it into the competition this

and Best Acceleration Program for Startups – have been included to

year too, being put forward for consideration either by the magazine

recognize the massive growth of the local entrepreneurial sector. In

and the jury, or through self-nomination. This year, we also decided

addition, we have decided to differentiate the efforts made by the

to invite both our readers and partners to vote for their favourite pro-

management of SMEs and large companies, splitting the Business

moter of Romania through art.

www.business-review.eu Business Review | March 2019

BR AWARDS 37

1. BEST COMMUNITY DEVELOPMENT INITIATIVE - Companies

ated as an external entity – hiring, firing

The Community Development - Companies

constantly evolving, and now the key objec-

category - awards the CSR initiatives of both

tive for attracting and retaining top talent into

Romanian and foreign companies and recog-

business is the focus on people practices.

and moderating conflict. The world of HR is

nizes their contribution to the community, by

• Autonom

demonstrating their commitment to imple-

• Banca Transilvania

menting medium- and long-term programs/

• Kaufland Romania

projects. It looks to reward companies’

• Microsoft Romania

involvement in community development programs with a high social and or economic

5. DEAL OF THE YEAR

impact on society.

This category acknowledges the most impor-

• Ariston Thermo Romania - The Ariston

tant business transactions of the previous

Comfort Challenge Romania

year, regardless of the transaction type. It

• Kaufland Romania – In stare de bine

recognizes the deal that had the most impact

program

and significance in 2018, in financial terms

• Microsoft Romania – Alt Viitor

and the development of the local economy, or

• Zitec - #cei 1024

of a particular industry. It looks at novel elements of the respective transaction, and how

2. BEST COMMUNITY DEVELOPMENT INITIATIVE - NGOs

the deal stands out on the local or regional business scene. It awards the seller.

The Community Development - NGOs cat-

• Banca Transilvania - Bancpost

egory - awards the initiatives of local NGOs

• Dedeman - The Bridge (Forte Partners)

and recognizes their contribution to the local

• Softvision – Cognizant

community or society as a whole, by demonmedium- and long-term programs/projects. It

6. BUSINESS LEADER OF THE YEAR Best CEO of Large Companies

looks to reward NGOs’ involvement in com-

The award seeks to recognize the remark-

munity development programs with a high

able achievements of businesspeople that

social and or economic impact on society.

go above and beyond their daily roles and

strating their commitment to implementing

• Junior Achievement

responsibilities as heads of companies, local

• Romanian Business Leaders

or international. For the first time this year,

• Teach for Romania

this category is split into two subcategories: Business Leader of the Year for CEOs of Large

3. INNOVATION IN TECHNOLOGY

Companies and for CEOs of SMEs.

This award recognizes novel, innovative and

• Marco Hoessl, Kaufland Romania

research-driven strategies, developed in/for

• Felix Patrascanu, FAN Courier

Romania. The category is meant to cover the

• Ömer Tetik, Banca Transilvania

many developments related to the introducas well as the roll-out of R&D-oriented invest-

7. BUSINESS LEADER OF THE YEAR Best CEO of SMEs

ments.

The award seeks to recognize the remark-

tion of new products, services or campaigns,

• Genpact for its Attrition Predictive Tool –

able achievements of businesspeople that

• A Machine Learning Engine

go above and beyond their daily roles and

• Happy Recruiter - Dora robot

responsibilities as head of companies, local

• Instant Factoring

or international. For the first time this year,

• Vodafone - Telemedicine center for

this category is split into two subcategories:

insulin-dependent children

Business Leader of the Year for CEOs of large companies and for CEOs of SMEs.

4. BEST EMPLOYER

• Monica Cadogan, Vivre.ro

Now more than ever, organizations are

• Alexandru Lapusan, Zitec

investing in the improvement of their people

• Marius and Dan Stefan, Autonom

practices. Gone are the days when HR oper-

www.business-review.eu Business Review | March 2019

38 BR AWARDS

8. EXCELLENCE IN BUSINESS

• Act for Tomorrow and NEPI – The Empty

This award recognizes the outstanding

Shop

achievement of a local business over a longer

• Kaufland Romania – The first store reor-

period of time, looking at aspects such as

ganized after a plastic free strategy

innovative character, development achieve-

• Viitor Plus – social business Recicleta

ments, market share and the overall reltoday’s hyper-fast world, excellence requires

12. BEST FINANCIAL PARTNER FOR SMEs

building flexible, nimble organizations

This category awards the efforts made by

that can quickly adapt to rapidly changing

financial institutions in their endeavors to im-

markets without losing sight of their vision of

prove the SME sector in Romania, considering

winning.

that SMEs represent the driving force for any

evance for the local business environment. In

economy.

• Autonom • Banca Transilvania

• Banca Transilvania

• Farmec

• ING Bank • ZITEC with Instant Factoring

9. BEST START-UP in the services industry This award recognizes the overall impact of

13. BEST ACCELERATION PROGRAM FOR START-UPS

the new investors that made their entrance

This category awards the efforts made by

on the local market in 2018. For the first time

business accelerators and incubators in their

this year, this category is split into two sub-

endeavors to improve Romanian start-ups

categories: start-ups specialized in delivering

and to encourage entrepreneurial initiative in

services and start-ups specialized in manu-

Romania.

facturing products.

• Impact Hub Bucharest • Keez

• Orange Fab Romania

• The Beer Institute

• Techcelerator

• Zitec with Instant Factoring

10. BEST START-UP in the manufacturing industry

14. BEST EMERGING ENTREPRENEUR OF THE YEAR This award recognizes the entrepreneurial

This award recognizes the overall impact of

efforts and achievements of a local emerging

the new investors that made their entrance

businessperson who has managed to develop

on the local market in 2018. For the first time

a successful regional or national business

this year, this category is split into two sub-

(expansion on the local and other foreign

categories: start-ups specialized in delivering

markets, significant organic growth, high po-

services and start-ups specialized in manu-

tential for development of the business both

facturing products.

on a local or international market).

• Disofa

• Razvan Crisan, The Kane Group

• KHAR

• Claudia Goga, CareToPets

• Nalu

• Alexandru Lapusan, Zitec • Radu Savopol, 5 to Go

11. BEST GREEN PROJECT This category awards the efforts made by companies / NGOs to make their contribution

Vox Populi: BEST PROMOTER OF ROMANIA THROUGH ART

to environmental protection, by imple-

• Sonoro Festival

menting projects with a high impact on the

• UNTOLD Festival

environment and society as a whole. It aims

• ART SAFARI Bucharest

also to recognize their efforts towards educat-

• The Transilvania International Film

ing Romanians in the spirit of recycling and

Festival

protecting the environment.

• Sibiu International Theatre Festival

www.business-review.eu Business Review | March 2019

40 MINDCHAIN

MindChain, the event that brought blockchain and AI together The biggest event in blockchain and artificial intelligence (AI) in Romania took place in February, in Cluj-Napoca, the country’s fastest growing IT hub. MindChain – When Blockchain meets AI is one of Business Review’s flagship events of 2019, and marks the beginning of a series of events that will cover the future of the technologies that will shape the future.

By Aurel Dragan

Muhammad Salman Anjum, Sebastian Cochinescu, Ella Cullen, Cornel Amariei

O

ver two days in Cluj-Napoca, dubbed

retail, finance and banking, real estate, trans-

especially Machine Learning, is more than

Romania’s Silicon Valley due to

portation, art, entertainment and media.

just robots that can weld and turn screws. AI

“If you put crap in the data, the AI will

can cover the places where the human brain

and strong student community, MindChain

give you crap,” said Thomas Kulnigg, partner

is not able to cope with the huge amount of

explored the interaction between blockchain

at Schoneherr Attorneys at Law, giving an

data.

and AI. The key proposition, reflected across

example of the data analysis by AI-powered

the entire agenda, was that AI empowers

apps. AI is a technology that emerged de-

limited applications. The robot is not AI itself,

and enhances one of the most revolutionary

cades ago, but it has only recently grown to

it is just a container for AI,” said Laura Ma-

technologies to have emerged in recent years,

cover all kind of industries. The main concern

nescu, head of Moneymailme, M3 Holdings,

blockchain. With a 30-panel agenda featuring

for employees is that they will be replaced by

adding that there are 45 million results for

international speakers and key figures on the

robots in the area of repetitive tasks. Their

Fintech apps on Google search. The financial

blockchain scene, MindChain presented the

concerns are real; such jobs are already be-

and banking system is one of the most dis-

latest case studies of the technologies across

ing done by robots as we can see in the auto

rupted sectors by blockchain and AI. The big

a comprehensive mix of industries such as

industry or in electronics production. But AI,

corporations were forced by Fintech startups

its unique mix of tech companies

“AI is pretty smart and it has almost un-

www.business-review.eu Business Review | March 2019

MINDCHAIN 41

to begin investing in AI and blockchain in order not to lose clients looking for simpler ways to transfer money around the world.

The decentralized system that blockchain offers will be the answer to the paradoxes we see today. For example, there is a company in Germany that can deliver in two days a product anywhere in the world, but its bill is paid in two weeks, which is not okay since the transfer can be stopped by the payer along the way, even after the product is received.

Blockchain can be the answer since its distributed ledger technology allows a very fast transfer that is also secure, without the possibility of withdrawing the money during Alexandru Glod

the transfer.

Blockchain took off as a technology after the invention of cryptocurrency. The virtual money peaked in value at the end of 2017, decreasing by more than 80 percent since then, but this doesn’t mean the end of cryptocoins.

“The ICO (Initial Coin Offering) mechanism is amazing because it allows so many investors to participate in projects – but most of the people who were involved in the ICO space in 2017-2018 didn’t really care about anything but themselves,” said On Yavin, founder of Cointelligence, explaining the crash of the cryptocurrency market. But the latest investing instrument, the Security Token Offering (STO), which uses the same mechanism, allows investors to get involved in projects that are otherwise beyond their means, like real

John Lilic, Peter Geršak, Andrei Nagy, Evgeniia Filippova, Thierry Arys Ruiz

estate projects.

Of course, not everyone sees such a bright future for the new technologies. While he sees blockchain becoming as normal as the internet, Thomas Kulnigg doesn’t think AI will develop in the same way. “Maybe I’m wrong, but I am very skeptical that we will see the same technological shift in AI as we see with blockchain, because AI lags so far behind in terms of technological approach.

Most of the many AI applications do not work, or are not intelligent in the sense that we save time using them,” said Kulnigg.

The example he gives is an AI startup from Austria that developed an AI software that extracts summaries from news article that are two pages long. The summary is two to three bullets points so one can read 20 articles in

Thomas Kulnigg, Michael Huertas, Christian Piska, Aviya Arika

a few minutes (or at least their synopses).

But the investors took two years to manually

www.business-review.eu Business Review | March 2019

42 MINDCHAIN

Max Borders

write 60,000 summaries of articles in order

ment is that using them is cheaper, allow-

to teach the AI how to do the same job. “That

ing cost-cutting for many functions in the

is the problem: it takes a lot of time, and if

activity of a company. “We already have AI

the data is not good, the result from AI also

and blockchain in many places; we just don’t

isn’t good,” said Kulnigg.

see it. And we will see it everywhere, but I

Undoubtedly a human touch will still be

don’t know when that is supposed to hap-

needed in order to perfect the result that

pen. What we need are good cases of how the

AI data analysis offers. In the healthcare

technology can replace the existing solutions

system, for example, the results given by

in a meaningful way. But the technology

AI analysis for oncology are more accurate

is there and it might be adopted on a large

than those of doctors. But the final treat-

scale earlier than we expect,” said Evgeniia

ment decision will still be made by a doctor,

Filipova, senior scientist at the Research

not by the machine. “Both technologies –

Institute for Cryptoeconomics, at the Vienna

blockchain and AI – have limitations. Time

University of Economics and Business.

will show to what extent these technologies will evolve, but we as a corporation really believe these are the technologies of the future. Besides them, there is quantum computing, which is a completely new paradigm of computing, as well as cloud, cyber-security and IoT (Internet of Things),” said Peter Gersak, chief technology officer for South East Europe at IBM. No matter how we see the technologies, it is clear that the future will be shaped by them.

And the first driver for develop-

Peter Geršak

Michael Huertas

www.business-review.eu Business Review | March 2019

44 ROMANIAN FILM

Bigger screen: Gopo Awards, Romania’s Oscars, set new records The 13th Gopo Awards (Premiile Gopo), the event awarding the local movie industry, has finalized its shortlists from a total of 79 Romanian films released in 2018. So who will the cinema world be celebrating this year? BR grabs the popcorn and finds out.

By Oana Vasiliu Documentary section nomination: Caisa (d. Alexandru Mavrodineanu)

European film nomination: Chipuri, locuri / Visages villages (d. JR Agnès Varda)

Local Oscars night: The Gopo Awards

T

he start of spring heralds the local

race for a nomination, among them Claudiu

film industry awards, a celebration

Mitcu’s Anniversary, Infinite Football di-

that involves more and more movies

rected by Corneliu Porumboiu, and environ-

each year.

This year’s festival showcases a record

Featured film category: Morometii 2 (d. Stere Gulea)

mental documentary Untamed Romania.

The best short category hosts a total of

number of feature films – 28 productions –

48 productions, including: Sunday (Dorian

including Pororoca directed by Constantin

Boguţă), The Two Executions of the Marshal

Popescu, which was awarded at the San Se-

– a Comparison (Radu Jude); Christmas Gift

bastian festival; Radu Jude’s latest, I Do Not

(Bogdan Mureşanu), Michelangelo (Anghel

Care If We Go Down in History as Barbarians

Damian) and Everything is Very Far (Emanuel

– Romania’s proposal for the 2019 Oscars;

Pârvu). The pre-selection jury, established by

Morometii 2 from Stere Gulea, one of the

the Gopo Awards advisory board, consists of

highest-grossing Romanian movies in 2018;

11 professionals from local cinema. After the

The Story of a Summer Lover, directed by

jury announces the nominations, more than

Paul Negoescu; local comedy Pup-o, ma!, the

600 active members of the Romanian cinema

feature debut of Camelia Popa; and Andrei

industry will be invited to vote for the Gopo

Cretulescu’s debut feature Charleston. The

2019 trophy winners. The event takes place

documentary section saw nine titles join the

on March 19, at Bucharest National Theater.

Featured film category: Charleston (d. Andrei Cretulescu)

Featured film category: Pororoca (d. Constantin Popescu)

www.business-review.eu Business Review | March 2019

PARTNER CONTENT 45

SUBWAY® ROMANIA IS PLANNING IN 2019 THE EXTENSION, OPENING FRESH NEW DECOR RESTAURANTS AND THE DEVELOPMENT OF THE DELIVERY SERVICE

Andrei Trifan

Rumen Radev

SUBWAY® Romania, part of the largest fast-

the country. This year we will remodel to new

food restaurant chain in the world, ended

“Fresh Forward Decor” all the restaurants that

2018 with very good financial results thanks

were opened in 2012”, says Andrei Trifan, Busi-

restaurants’ offers you can find on Subway

to the excellent business optimization. With

ness Development Agent for the area outside

România.

a network of 38 restaurants in Romania, of

Bucharest-Ilfov.

which 17 in Bucharest, SUBWAY® Romania

In 2018, Romanians have proved appreciation

expanding the home delivery program.

More details about the SUBWAY®

SUBWAY® Romania

has continuously increased its profits and

and receptivity for the Subway products and in

The history of Subway brand started in

will continue its ascending trend in 2019.

2019 the focus will be on franchisees. “We are in

1965 in United States and its success has

With over 500 employees in Romania,

direct contact with the Subway franchisees and

been based on a business model developed

38 functional restaurants and other 10 in

ready to offer support to those who want to start

by Frederick DeLuca. A simple and tasty

development, Subway® Romania ended 2018

a business in Romania. We continue negotiations

sandwich made before guest’s eyes was the

in the top. The volume of sales per restau-

to get the best locations and best rental prices”,

idea behind each restaurant and the starting

rant increased by 8% compared to 2017. The

says Rumen Radev, Business Development Agent

point in the brand’s international expansion.

positive trend was also felt in the first month

for the Bucharest-Ilfov area.

Today, Subway stands for over 43,000 res-

of 2019. “In the past year, we focused on the

In 2019, SUBWAY® Romania will open its

taurants in more than 100 countries. In 2011,

business optimization. We have, thus, man-

firsts Fresh Forward decor restaurants. The first

the brand enjoyed the status of the biggest

aged to maintain a growth trend and to keep

one will be openes in Pitesti. The brand will also

chain of fast food restaurants in the world

our customers faithful. The delivery platform

continue to introduce new sandwiches and new

with respect to Romania, the chain has been

also had a spectacular increase, and we man-

coffee flavors. SUBWAY® is focusing on excep-

in the market for almost 7 years and has

aged to double the number of orders in just

tional services and product quality, but also on

more than 38 restaurants.

a few months. Like the past years, we have continued to grow our business, we have maintained the positive trend by increasing the turnover, sales and profitability”, says Rumen Radev, Business Development Agent for the Bucharest-Ilfov area. “In 2019 we are continuing to develop the SUBWAY® brand and to make it stronger in Romania. We are planning to open street location in big university cities and continue our partnership with gas stations on transit all around

www.business-review.eu Business Review | March 2019

46 CITY

Cultural calendar Cornel Lazia exhibition Until March 9, Creart

By Oana Vasiliu

Bikers’ Fair March 29-31, Baneasa Shopping City parking

One of the most well-known Romanian photographers, Cornel Lazia, presents his latest exhibition, Monolith, an Expression of Viewing. In his work, Lazia “explores the idea of a new code of cities, reinterpreting the relations between human and structure, in a bid to create an ideal city which lives and breathes in an

Get on your bike for the larg-

imaginary dimension, deposit-

est fair of its kind in Romania!

ing aspirations that feed with

National and international

inspiration. This selection shows

brands will showcase their latest

the multitude of connections

products, while an impressive

with this ‘human congestions’,

skate park will be arranged for

real human reactors which feed

demonstrations and tricks. En-

progress and hope,” says Eugen

trance costs RON 20.

Radescu, the exhibition’s curator.

Mastering the Music Business conference March 20-22, Caro Hotel Mariza concert March 6, Sala Palatului

Mamma Mia! musical March 15, Sala Palatului

Breakers Award. That same year, Mariza sang the duet A Thousand Years with Sting, during the Olympic Games in Athens.

Since her 2001 debut, she has also worked with artists such as Lenny Kravitz, Cesária Évora, Tito Paris, Carlos do Carmo and Rui Veloso. Ticket prices start from RON 99.

Iconic musical Mamma Mia!

Jazz in Church March 7-10, Lutheran Church

A professional event for the

returns to the Sala Palatului

music industry seeking both to

stage, bringing ABBA hits and a

provide attendees with useful in-

touch of sunshine for fans of the

The seventh Jazz in Church

formation and to create a bigger

iconic 70s band and of musicals

festival brings 20 musicians

and more powerful community

in general. This Romanian-

from all around the world for

of music business professionals

language version will attract a

Fado lovers – get ready to

four full days of jazz. Mario

from all over Europe – whether

wider audience to one of the

welcome back Mariza onto the

Batkovic, Maria Pia De Vito, Anja

artists or not – looking to share

most successful musicals of all

Bucharest stage! The Mozam-

Lechner, Francois Couturier and

information about the latest

time. A star-studded local line-up

bique-born Portuguese artist

Michele Rabbia will be among

trends, technologies, promo-

features Loredana, Horia Brenciu,

has received numerous Grammy

the performers in this uniquely

tional means and music monetiz-

Aurelian Temisan, Cornel Ilie,

awards nominations and, in

located event. Tickets start from

ing at all levels. Tickets start from

Anca Turcasiu and many, others.

2004, won the European Border

RON 120.

RON 250.

Tickets start from RON 75.