4/2015, April - May

INTERVIEW: Local employers increasing extra-salary benefits for their staff combined with an expanding appetite for new products such as gift cards, will return the local voucher market to growth in 2015, Vianney Du Parc, GM of Edenred Romania, tells BR »page 16

REAL ESTATE SOME 100,000 SQM OF OFFICE SPACE IS EXPECTED TO BE DELIVERED THIS YEAR OUTSIDE BUCHAREST, DOUBLE THE LEVEL LAST YEAR, SAY CONSULTANTS.

ROMANIA’S PREMIER BUSINESS MAGAZINE

APRIL, 2015 / VOLUME 19, ISSUE 4

» PAGE 8

From global names to local contenders, from market innovation to a lack of transparency, PR professionals in Romania told BR how their firms are developing in a volatile market and what lies ahead » page 18

LOCAL PR MARKET SHOWS NEW COLORS TRAVEL

INVESTMENTS

Online deals

Capital hunger

3TS buying a significant stake in Vola.ro and Paravion.ro’s acquisition of Bavul.com are the big deals on the local online travel market

Local IT, energy, oil and gas and agriculture firms are on the radar of a Chinesebacked USD 500 million private equity fund

» page 28

» page 7

www.business-review.eu Business Review | April 2015

EDITORIAL Anda Sebesi EDITOR-IN-CHIEF

You can never stay the same Public relations (PR) has always been crucial to the success of a business. It is a strategic communication process that builds mutually beneficial relationships between organizations and their publics. Plus, it offers added value that generally few see as a significant benefit. We chose to dedicate this issue of Business Review to an indepth analysis of the local PR market simply because it is one of the most dynamic industries on the Romanian market. Proof of this, experts say, is that the value of the local PR market is still growing, having not yet reached its total potential, and was estimated at around EUR 30 million last year.

Specialists say that it is an expanding market, although budgets and business figures haven’t suggested so in recent years. The growth is more evident in accountability and self-confidence, with professionals that are better equipped now than 15-20 years ago to successfully fill the coveted role of business consultants.

It is also a young industry: the average age of a Romanian PR professional is 30, with most having around 7.5 years of experience in the communication field. Plus, the scene is pretty crowded as, in total, the market is home to 939 entities – companies and independent contractors – that provide PR services. Pundits say 2014 was a more mature year, with better targeted PR activates. Pitches, briefs and creativity had more substance and fees started to reward real strategic expertise more and tactical activities less.

In this new digital era, PR consultants have to be ready to seize opportunities fast, to generate conversation and to handle unseen situations, while clients need immediate solutions, without compromising on quality.

While some years ago there was definitely a trend of seasonality, even in PR activities and marketers’ business plans, nowadays, looking at the ever changing industry and the amount of projects and after hours involvement, it seems those days have passed. There is no time for slowing down and taking a deeper breath of fresh air. Meetings and pitches come every day, with no trend of taking it easy.

With the increasing role of social media and its potential reputational influence, crisis communication expertise, its preventive part especially, has often been sought by clients. On the other hand, while storytelling has always been a strength of PR, recent years have put greater emphasis on how a story has been told and from which angles. Visual content production became a new power and the industry has adjusted to respond to these new requirements.

As the industry and digital power are growing and evolving, the lines between PR, advertising and digital are getting slimmer and more blurred. Clients want results and integrated strategies and communication, and agencies have to be ready to offer just that.

One thing is for sure: agencies cannot stay the same, but have to be the first to integrate new trends and convince the client to adopt them.

anda.sebesi@business-review.ro

EDITORIAL 3 Contents 3

EDITORIAL

You can never stay the same

6

FMCG

A hill of beans: Romanians down EUR 400 million of coffee in 2014

7

CAPITAL

Chinese-backed private equity fund to in vest up to USD 50 mln in Romania by yearend

8

REAL ESTATE

Demand for office space outside Bucharest to reach record level in 2015

10

Accor plans to double local hotel network in five years’ time

12 TAX&LAW

Tax evasion fight ‘risks making life hard for all taxpayers’

16 INTERVIEW

Voucher market to get a bonus in 2015

18 COVER STORY

Local PR market shows first signs of real maturity

28 TOURISM

Major moves reshape consolidating online travel market

30 INTERVIEW

A modern four-star hotel reveals a piece of Bucharest history

31 GREEN CORNER

Romania Green Building Council launches green playground project

33

Ursus Breweries presents local sustainability report

34 TRAVEL

A glimpse of Jordan

36 INTERVIEW

Stable business: jockeying for position in the horse field

37 FILM REVIEW

Jimmy’s Hall

ISSN No. 1453 - 729X PUBLISHER Bill Avery EDITOR-IN-CHIEF Anda Sebesi DEPUTY EDITOR-IN-CHIEF Simona Bazavan EDITORS AT LARGE Anca Ionita, Simona Fodor JOURNALISTS Otilia Haraga, Tatiana Lazar, Romanita Oprea, Fulvia Meirosu, Andreea Marinas COPY EDITOR Debbie Stowe PHOTO EDITOR Mihai Constantineanu LAYOUT Beatrice Gheorghiu, Raluca Piscu PUBLISHER Bloc Notes Media ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania

EXECUTIVE DIRECTOR George Moise BUSINESS DEVELOPMENT DIRECTOR Oana Molodoi SALES & EVENTS Ana-Maria Nedelcu, Oana Albu, Valeria Cornean MARKETING Anamaria Radu PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 EMAILS editorial@business-review.ro sales@business-review.ro events@business-review.ro

www.business-review.eu Business Review | April 2015

4 NEWS

NEWSin brief AGRICULTURE Agricover Credit secures EUR 10 mln loan from International Investment Bank Agricover Credit NBF, the financial division of Romanian agribusiness group Agricover, signed this April an agreement with the International Investment Bank (IIB) securing a EUR 10 million loan facility that it wants to use to finance local farmers. Demand from these borrowers continues to be highest for working capital loans, but the funds secured from the IIB will also be used for investment loans, said Robert Rekkers, CEO of Agricover Credit NBF. Agricover Credit NBF’s credit exposure at the end of Q1 stands at RON 600 million (approximately EUR 135 million). The company plans to increase this by approximately 15 percent by yearend.

BANKING BT completes Volksbank Romania takeover Banca Transilvania (BT) has paid RON 360 million (EUR 81 million) to take over Volksbank Romania’s whole package of shares from Austrian group Volksbank, German banks DZ Bank and WGZ Bank and BPCE in France, according to Mediafax. Of the total, EUR 58 million was placed in an escrow account to cover any risks that may arise during the first year after the Volksbank takeover. The funding was provided from BT reserves.

BT, Romania’s third largest bank in terms of assets, signed a firm commitment in December for the acquisition of 100 percent of Volksbank Romania’s shares.

INDUSTRY Industrial output grows by 2.4 pct in first two months of year Romania’s industrial output saw a 2.4 percent increase in the first two months of 2015 (gross series) on the same period of 2014, in particular due to the positive performance of the manufacturing industry (up 3.6 percent), according to data from the National Institute of Statistics (INS). In contrast, the output and supply of electric and thermal energy, gas, hot water and air conditioning dropped by 5.8 percent and the extractive industry was down by 4.8 percent. Moreover, industrial output in the adjusted series, depending on the working days

and seasonality, over January to February 2015, as against the same interval of 2014, increased by 3.3 percent, as a result of a 4.9 percent growth in the manufacturing industry.

INVESTMENTS 62 pct of foreign investors expect revenues to go up, says FIC In a Foreign Investors Council (FIC) survey carried out among the organization’s members, 62 percent of respondents expected their revenues to grow at the end of last year, out of which 14.3 percent predicted significant growth. By comparison, in December 2013, 51.5 percent expected growth and only 3.85 percent forecast a significant increase in their revenues.

This also compares slightly favorably with June 2014 expectations. Similarly, versus June 30, 2014, the number of respondents expecting a contraction in their revenues was down 20 percentage points to 8.6 percent in December 31, 2014. However, this remains slightly higher than the 6 percent posted in December 31, 2013. The share of companies that felt their business would remain unchanged this year has gone down from 39.3 percent in December 30, 2013, to 28.5 percent.

However it is still higher than the 19.2 percent in June 30, 2014.

IT First IT&C cluster in Bucharest officially launched Different Angle, the first IT&C cluster in Bucharest, has officially launched with the mission to promote innovation, education and development among SMEs in the Bucharest area.

Its main activities are centered on software solutions, via companies such as eSolutions Grup, Gemini Solutions, Greentree Applications, Power Net Consulting, Qualitance and Tremend as well as consultancy solutions, training and IT equipment through firms such as Lasper Human Development, RezolvIT, Evolva Trend Consultant and Econo-heat. There are currently more than 2,000 clusters in the European space, and over 60 in Romania.

National Instruments inaugurates new HQ for R&D facilities in Cluj National Instruments, provider of hardware and software solutions in the field of engineering and research,

has inaugurated the new headquarters of its research & development operations in Cluj-Napoca, in The Office building. Apart from research in the embedded software field, the new space, which covers over 1,800 sqm, will host the sales and customer service activities both for the public sector and other fields such as education, advanced research, automotive, aerospace, electronics, industrial automation and energy. The national R&D center in Cluj-Napoca was inaugurated

by National Instruments in 2005 under the management of Horia Hedesiu, branch manager of the center and teacher at the Technical University in Cluj-Napoca.

6.5 mln Romanians visit YouTube each month YouTube, the world’s most popular video sharing platform, is visited each month by approximately 6.5 million Romanians, 60 percent of whom watch music videos, according to Hotnews.

Beside music, Romanians also view YouTube cooking lessons (25 percent), sports competitions (24 percent) and politics coverage (23 percent). Some 21 percent watch content dedicated to technology and gadget reviews.

MACROECONOMICS Economy to grow by 2.7 pct this year, says IMF Romania’s economy will advance by 2.7 percent this year, according to an International Monetary Fund (IMF) report. The institution thereby maintains the forecast made following its visit to Bucharest in February when it revised the growth forecast upwards from October 2014. In the previous edition of the World Economic Outlook report, the IMF had anticipated that the Romanian economy would grow by 2.5 percent this year. At the end of a February visit to Bucharest, IMF experts said that this year’s economic advance would be supported mainly by strengthening private consumption due to a real increase in wages, low oil prices and record-low interest rates.

In 2016 the IMF predicts the Romanian economy to grow by 2.9 percent.

FDI to Romania up 45 pct in first two months y-o-y Foreign direct investment (FDI) to Romania totaled EUR 409 million in the first two months, up 45 percent against the same period last year. Equity (including estimated net profit) amounted to EUR 358 million and intercompany lending to EUR 51 million, according to central bank data. The increase reg-

MONTH AHEAD MAY 1 Recovering prejudices The government will adopt a first bill regulating confiscated assets. By the end of April, it will set up, based on the bill, the National Agency for the Identification of Unavailable Goods.

MAY 1 IMF visit An International Monetary Fund (IMF) mission is expected in Bucharest this May. During the last visit in February, representatives of the IMF and the European Commission failed to sign a letter of agreement with Romania on the country’s EUR 4 billion standby aid deal, which will expire this September.

May 11-15 Cyber security event The US deputy secretary of commerce Bruce H. Andrews will lead a Cyber Security Business Development Mission to Romania and Poland. The purpose of the mission is to introduce US firms and trade associations to Central and Eastern Europe’s information and communication technology (ICT) security and critical infrastructure protection markets and to help US companies find business partners and export their products and services to the region.

May 1 Payment limitations Cash payment limitation measures come into force in May, according to the law for financial discipline reinforcement regarding receipts and payments, published by Romania’s Official Gazette.

The law will take effect in 30 days, but the provisions related to the interchange fees’ limitation apply in one year.

MOST READ www.business-review.eu 1 Coffee brand Nespresso enters Romanian market

2 National Instruments inaugurates new HQ for its R&D center in Cluj

3 Wizz Air adopts two-person cockpit rule

4 Romanian businessman Ioan Niculae sentenced to two and a half years in prison

5 Orange group opens first smart shop in Cluj-Napoca

6 Local CSR market, though uneven, moves towards focus and sustainabilityshop in ClujNapoca

www.business-review.eu Business Review | April 2015

istered this year is higher than the one reported in the first two months of 2014, when investments saw a 35.6 percent growth versus the period January-February 2013.

REAL ESTATE EUR 30-40 mln of real estate transactions reported in Q1, says DTZ Echinox Transactions involving office projects, shopping centers, logistics parks and plots of land totaled EUR 30-40 million in the first quarter of this year, according to DTZ Echinox data. The level is similar to the one recorded in the same period of 2014, which stood at EUR 270 million, once the intragroup acquisitions made last year by businessman Ioannis Papalekas are excluded. The biggest transactions this year have been US investment fund Heitman’s sale of Mercury Logistics Park to Czech company CTP and the sale of Galleria Braila shopping center

by GTC to a local investor.

NEWS 5 was opened at 104 Ion Mihalache Boulevard and the Belgian retailer plans to open two more locations in the capital over the coming period.

Mega Image operates a network of 412 stores in Romania, most of them located in Bucharest, under the Mega Image, Shop&Go, AB Cool Food and Mega Drive retail brands.

Bucharest apartment prices down by 10.5 pct in March Property sellers in Bucharest lowered their asking prices for apartments by as much as 10.5 percent in March compared to January, owing to sellers’ unrealistic expectations at the beginning of the year, according to HomeFinders. The average asking price for apartments in Bucharest’s semi-central, central and northern areas was EUR 68,000 in March, down by 10.5 percent against January.

A similar trend was also observed in the first quarter of the previous year, according to the property portal.

RETAIL Mega Image opens first exclusively local store Six years after the launch of the “Gusturi Romanesti” private label brand (Romanian Tastes), Mega Image has opened its first Gusturi Romanesti store in Bucharest, a new retail brand selling only local products. The outlet

BR welcomes information for Who’s News.

Submissions may be edited for length and clarity.

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

Valerio Brenciaglia

STOCK EXCHANGE BVB trading value up 13.6 pct in March y-o-y The total trading value on the Bucharest Stock Exchange (BVB), without public offers, increased by almost 33 percent in March compared to February, to RON 875 million (EUR 197.4 million), according to a BVB monthly report. Compared to March 2014, the trading value of the BVB’s regulated spot market for March 2015 was 13.6 percent higher this March. Equities trading continued to make up the biggest share in the total value of trading.

NEPI postpones opening of Mega Mall until May 14 South African investment fund New Europe Property Investments (NEPI) will open its Mega Mall shopping center in Bucharest on May 14, the developer has announced. The EUR 165 million shopping mall located the vicinity of the National Arena was initially scheduled for completion on April 23. The mall covers 72,000 sqm (GLA) and will host some 200 stores.

Mega Mall is the largest investment the South African investment fund has made in Romania so far and the biggest modern shopping mall to be delivered this year in the country.

WHO’S NEWS

Bittnet Systems listed on AeRO market Bittnet Systems has become the first Romanian IT company to be listed on the Bucharest Stock Exchange, on the AeRO market. The company’s main activity focuses on IT training and delivering end-to-end IT infrastructure services and solutions from market leaders like Cisco, Microsoft, Dell, VMware, HP etc. Bittnet Systems was set up in 2007 by Mihai and Cristian Logofatu. In March 2015 the company raised EUR 150,000 by selling 10 percent of its shares to Carpathia Capital with the intention to further increase selling capacities and grow revenues.

TOURISM Over 105,000 Romanians spent EUR 7 mln on Easter holiday More than 105,000 Romanian tourists spent RON 31.2 million (EUR 7.07 million) on Easter holiday accommodation and catering services throughout the country. The most popular destinations were boarding houses which hosted 65,000 guests and cashed in RON 19.5 million (EUR 4.4 million) for food and lodging only, according to data processed by the Federation of the Romanian Tourism Employers (FPTR).

The most popular destinations were Bran-Moeciu, Bucovina, Vrancea, Sibiu, Maramures and Buzau as well as mountain resorts in the Prahova Valley and spa reports. Occupancy rates peaked at 86 percent in rural areas, and stood at 73 percent in mountain resorts, 64 percent in urban areas, 50 percent in the Danube Delta and 10 percent at the seaside.

is the new CEO of Ford Romania as of this April. He replaces Zoltan Brassai, who has joined the Ford Europe team as brand director for large cars. Brenciaglia, 45, is familiar with the market in Romania, having held the position of director of sales and marketing at Ford Romania from July 2012 to September 2013. A graduate in economics, he joined Ford in 1999 and has held numerous positions in the sales, marketing and services departments at Ford Italy, including operations manager. Brenciaglia will also join Ford Romania’s board of directors.

charge of coordinating the leasing activity for the shopping centers it manages.

Petruescu has over nine years of professional experience on the local retail market, having worked for various real estate companies over the years. She was involved in the leasing of Arena Mall Bacau, Era Shopping Park Iasi, Mures Mall TarguMures and Cora Constanta. She has also worked as an independent consultant for retailers such as the Librarium Group and Noriel.

Andreea Poenaru

took over as corporate affairs and communication manager at GlaxoSmithKline (GSK) Romania in April.

He will be responsible for developing the strategy for improving patient access to GSK medicines, the coordination and implementation of the strategy regarding relations with foreign partners as well as the development and implementation of the CSR and communication strategy for GSK in Romania. Previously, Gradinariu served as business unit manager for pharmacies at GSK Pharma.

has recently joined Nemoianu Toncescu Mihaila Olteanu (NTMO) Attorneys at law, a Romanian company associated with KPMG Legal, an international network of independent law firms. Poenaru has worked for several international law firms over the years and has extensive legal expertise, focusing on financial services, project and asset finance, transactions and M&A. Her arrival is part of NTMO's growth strategy.

Andrew Peirson

Fadlallah Zayat

has been appointed managing director for Romania and South-Eastern Europe (SEE) by real estate services firm JLL. This is an expansion of his current role as managing director for the firm’s SEE business based out of its office in Belgrade, Serbia.

According to the company, Peirson will divide his time between the Bucharest and Belgrade offices, also continuing his role on JLL’s CEE board. Marius Scuta, who continues as head of the office department and tenant representation, and Silviana Badea, who joined JLL earlier this month as head of capital markets for Romania, will be supporting the new MD in the company’s local leadership team.

is the new CEO of JW Marriott Bucharest Grand Hotel after previously holding the position of regional finance director for Eastern Europe.

With extensive experience in finance, this is his first term as CEO. Zayat has been with the hotel group for more than 20 years, starting as general cashier (JW Marriott Dubai, 1994) and advancing to the financial coordination of 54 hotels in 16 countries from finance director positions in different areas.

Petru Gradinariu

Mihaela Petruescu is the new head of the property management department of DTZ Echinox. She joined the real estate services firm in July 2014 and was put in

Angelo Zuccala has been appointed GM of the Crowne Plaza Bucharest Hotel owned and operated by Ana Hotels under franchise agreement with the Intercontinental Hotel Group (IHG). He has 19 years of professional experience in the hospitality industry, the past 12 of which were within IHG where he has specialized in sales, food & beverage and in managing large hotel operations. Since May 2012 Zuccala has held the executive assistant manager position at the Intercontinental Bucharest.

www.business-review.eu Business Review | April 2015

6 fmcg

A hill of beans: Romanians down eUR 400 million of coffee in 2014 The local coffee market reached EUR 400 million in 2014 as coffee prices soared. However, consumption has stalled, according to a PwC Romania study. ∫ AndA SebeSi The value of the Romanian coffee market was close to EUR 420 million last year, a slight decrease from 2013, a PwC Romania study found. The price of coffee started grew by 30 percent between 2009 and 2013 – driven in part by the high taxation level in the industry.

Annual coffee consumption in Romania rose by 9 percent between 2000 and 2009, buoyed by the economic growth registered during this period, which doubled the amount of coffee consumed annually. From 2009, coffee consumption felt the effects of the economic crisis and started to decline, with the market contracting by 8 percent between 2009 and 2011, since when it has remained relatively constant.

The same study put Romania 26th in Europe by average coffee consumption, with an annual per capita consumption of 2.3 kg, compared to the EU average of 4 kg per capita. This is caused by the high coffee prices in relation to local purchasing power, as well as the VAT level and unharmonized excise duty, say pundits.

The elimination of coffee duty could cut prices price, boosting consumption and encouraging the development of the coffee and coffee products market in Romania. Such a measure would have a neutral impact on the budget revenue, say pundits, with the 0.2 percent decrease in collected revenue from excise duty offset horizontally by other taxes collected following the development of the coffee industry.

“Taking into account the correlation between the price of coffee and coffee consumption, we estimate that reducing prices by eliminating the excise, combined with rising disposable incomes, could increase coffee consumption and also boost other economic sectors. The es-

Romania ranks 26th in Europe by average coffee consumption, with an annual per capita consumption of 2.3 kg timated value of additional taxes collected by the state budget would reach RON 64 million,” projected Bogdan Belciu, partner, advisory services, PwC Romania.

Romania is one of the last members of the European Union to still apply excises to coffee (along with Denmark, Germany, Croatia, Belgium and Latvia). None of the other 22 member states does so.

“In terms of tax philosophy, excise duties are applied to products that are either considered luxury, or harmful to health or the environment. Coffee, a mass consumer product, does not meet any of these criteria, so the excise is justified strictly by budgetary reasons. Our data show that the elimination of excise duty on coffee would have a neutral impact on the state budget. We notice that the recently adopted new Tax Code proposed by the government eliminates these unharmonized excise duties, with the main

Fair trade facts: l l l l

30 countries around the world supply fair trade coffee Around 125 million people worldwide depend on coffee for their livelihood Fair trade coffee won 14 Great Taste awards in 2014 25 percent of fair trade farmers invest 25 percent of their premium to enhance the quality of the coffee they produce l Fair trade enables farmers to improve their living standards l Over 660,000 farmers are now part of the fair trade movement l From 2012-2013 a fair trade premium of over GBP 37 million was generated, empowering farmers to decide how to invest in their communities.

Source: www.fairtrade.org.uk

reason that there is a gap between state budget revenues and the administrative costs of enforcing these taxes, as well as the conformation costs for taxpayers,” added Daniel Anghel, partner, tax consulting, PwC Romania.

In terms of budget revenues, excises on coffee in 2013 stood at RON 51.7 million, 0.2 percent of total national excise revenues of RON 21.1 billion.

“The ANAF human resources currently working on collecting and administering the coffee excise duty could be redirected towards the alcoholic beverages and tobacco sectors – two of the most important industries when it comes to excise duty revenues and which currently suffer a high level of tax evasion, estimated at around RON 2.5 billion,” said Anghel. “It is commendable that the tax authorities have stepped up efforts to combat tax evasion, because these will lead to an improvement in the business environment, by eliminating the unfair competition in certain sectors, and will generate additional resources for the state budget. Even a modest 1 percent reduction in tax dodging with regard to the above mentioned products could generate more than RON 24 million in revenues for the budget.”

A community flavor: fair trade coffee Although the concept of fair trade is well known and has been commonplace for decades worldwide, Romania is still lagging behind more developed countries.

But it has taken some steps in this direction.

Coffee is big business and remains one of the most valuable primary products in world trade. However, for many of the world’s 25 million coffee farmers, it is a labor-intensive crop that frequently yields very little financial return.

Coffee is also enormously valuable to the economies of many developing countries. For some of the world’s least developed nations, such as Burundi, the cultivation of coffee accounts for the majority of foreign exchange earnings, up to 80 percent. Most coffee-dependent workers worldwide are in developing countries, especially Brazil, Vietnam, Colombia, Indonesia and Mexico, the largest exporters of coffee.

A few large retailers on the local market have expanded their range of products to include coffee from fair trade sources.

Many coffee chains have also adopted this strategy, with Starbucks being an example both in Romania and worldwide.

In short, fair trade works to benefit small-scale farmers and workers, who are amongst the most marginalized groups globally. The idea is that trade rather than aid enables them to maintain their livelihoods and reach their potential. Fair trade certifies small-scale farming organizations and offers rural families the income stability that enables them to plan for the future.

Bananas, cocoa, coffee, cotton, flowers, sugar, tea, composite products, fresh fruits, gold, honey, juices, rice, spice and herbs, sports balls and wine all come in fair trade versions. anda.sebesi@business-review.ro

www.business-review.ro Business Review | April 2015

cApitAl 7

chinese-backed private equity fund to invest up to USd 50 mln in Romania by yearend Local companies active in IT, energy, oil and gas and agriculture are on the radar of the China-CEE Fund set up

by Export-Import Bank of China. ∫ SimonA bAzAvAn CEE Equity Partners, the advisor of a Chinese-backed USD 500 million private equity fund, predicts it will invest between USD 20 million and USD 50 million in a local project by the end of the year, according to Octavian Vidu, the firm’s investment manager for Romania. The company is mainly interested in investing in industry-related infrastructure for sectors such as energy, IT, oil and gas and agriculture and also in specialized production. CEE Equity Partners’ local office is currently negotiating several local potential projects to invest in, added Vidu.

Poland is the main country of interest in the region for the fund but Romania’s economic potential, its need for capital and reduced competition from other private equity funds make it the second most promising

Octavian Vidu, CEE Equity Partners

candidate in the region, said Rafal Andrzejewski, investment director for Poland.

“Romania lacks capital and the crisis has shown that one cannot develop a business by relying solely on bank loans,” said Vidu. However, despite this obvious need, local companies remain somewhat reluctant to partner up with private equity funds, he added.

“Romania lacks a capital culture.

There is a limited understanding of what its role is. Many businesses have been built on credit which could be secured relatively easily. This business model, based almost entirely on credit, would be an anomaly elsewhere,” he said. Now that market conditions have changed, this model has to be reevaluated and private equity funds will start to gain popularity, predicted Vidu.

The fund, China-CEE Investment Cooperation Fund, was established

by the Export Import Bank of China (Eximbank China) in partnership with other investors and has USD 500 million available for investments in 16 countries in the region. Out of this, USD 470 million comes from Eximbank China and the rest from Eximbank Hungary. By year-end, a second fund of USD 1 billion for the region will be launched, under the same management.

The fund invests between USD 20 million and USD 80 million as leveraged buyouts for a period of between five and seven years on average.

Out of the USD 500 million about one third has already been invested in four projects, three energy projects in Poland and one in Hungary, where the fund bought a majority stake in BKF Hungary, the largest private university in the country. simona.bazavan@business-review.ro

www.business-review.eu Business Review | April 2015

8 real eSTaTe

Demand for office space outside Bucharest to reach record level in 2015 Some 100,000 sqm of office space is expected to be delivered this year outside Bucharest, double the level reported last year, say consultants. IT and outsourcing companies remain the main growth engines behind this, but for how long will regional office markets in cities like Timisoara, Cluj-Napoca and Iasi be able to maintain their momentum?

Photo: The Office

Expansion plans: at least a third of the second phase of The Office in Cluj-Napoca will be leased by existing tenants

∫ SImona Bazavan Demand for office space outside Bucharest increased by 140 percent in 2014 against the previous year and in 2015 it is projected to exceed last year’s record level, Mihaela Galatanu, research specialist at DTZ Echinox, told BR. Actual take-up stood at some 37,000 sqm, out of which net take-up represented 68 percent, or about 25,000 sqm, Andrei Drosu, research consultant at JLL Romania, told BR. According to Esop data, the 37,000 sqm of office space leased last year outside the capital was up by 60 percent y-o-y and seven times more than the 2012 level.

Companies such as Siemens, Genpact, Yardi, 3Pillar Global, National Instruments, Endava, GSK, Accenture, Continental and GfK are among the main players that have leased office space outside Bucharest. Timisoara, Cluj-Napoca and Iasi maintained their status as the main regional office mar-

kets in 2014 in terms of both existing stock and demand, but there is increasing interest in so-called tertiary cities such as Brasov, Targu Mures and Ploiesti, say pundits.

The IT crowd…

Demand for office space outside Bucharest is projected to reach a new record in 2015 and IT and outsourcing companies will remain the main engines behind this growth, say consultants.

“In 2015 we’re seeing that the interest of IT, BPOs and service outsourcing companies in Romania is posting stronger growth than last year. Once every two weeks a new name probes the market; even more often than that we present case studies on Romania, the structure and talent of the local workforce. We estimate that over 20,000 sqm of office space will be leased this year by incoming companies, both in Bucharest and around the country,” Andreea Paun, associate director,

office agency, at Colliers Romania, told BR, adding that most of these deals will be closed in the second half of 2015.

Besides these well established players, the pick-up in industrial activity has led to companies active in sectors such as automotive manufacturing and energy leasing office space close to their regional operation centers, noted Drosu.

This trend too is expected to continue in 2015.

And it is not only newcomers and expanding tenants that are fueling this demand. Relocations from class C or class B office projects to more modern and energy-efficient class A projects are also contributing to the market’s growth.

“At present, many of our clients are considering consolidation, opening new offices or relocating from class B office buildings, which they used to test the potential of the local market, to class A projects. This is a natural evolution once the market has proved to be sustainable for them on the long run,” Mihai Paduroiu, head of the office

agency at CBRE Romania, told BR. Also, as class C office stock is quite extensive in several regional cities, many tenants are opting for relocations to class A office buildings in order to optimize space and occupancy costs, added Galatanu.

And as this overall demand for office space goes up, developers are investing in meeting tenants’ specifications. According to consultants, between 80,000 and 130,000 sqm of office space will be delivered outside Bucharest this year, more than double the level reported last year and a stock similar to that estimated to be completed in the capital.

Some of the biggest office projects to be delivered this year include the second phases of The Office and Liberty Technology Park in Cluj-Napoca, the fifth building of City Business Centre and Optica Business Park 2 in Timisoara, UBC 5, Ideo 2 and Moldova Center in Iasi.

While last year the highest volume of new office space was delivered in Cluj-Napoca, this year Iasi, in eastern

www.business-review.ro Business Review | April 2015

leasing activity by city in 2014 City

Total leasing activity (sqm)

Bucharest Cluj-Napoca Timisoara Iasi Ploiesti

306,273 21,090 11,452 4,100 735

Source: ESOP Romania, is in the leading position with a volume of 43,000 sqm, according to DTZ Echinox data. The western cities of Cluj-Napoca and Timisoara are in second and third positions.

A trend that persists, however, is that just like in recent years, most projects scheduled for completion in 2015 are speculative developments, meaning they haven’t secured a significant prelease before starting works. Demand, however, is high enough for developers to take calculated risks and previous years prove that speculative developments are a market characteristic.

“Analysis of transactions signed over the

real eSTaTe 9 past five years shows that more than 65 percent involved existing buildings.

Therefore, as long as companies prefer to lease space in completed office buildings, we will continue to talk about speculative developments,” said Daniela Popescu, head of research at Colliers Romania.

Romanian businessman Ovidiu Sandor is behind two of the biggest office blocks to be delivered in 2015 outside Bucharest. After investing EUR 26 million with New Europe Property Investments (NEPI) in 2014 in the first phase (19,000 sqm of GLA) of The Office, a class A project located in downtown Cluj-Napoca, they will open the project’s second phase (18,000 sqm GLA) in December.

The businessman is also the developer of the City Business Centre office project in Timisoara (43,000 sqm GLA) which he sold to NEPI in early 2012 for an estimated EUR 90 million and which will open its fifth and last building (9,000 sqm GLA) this year.

“The first building of The Office, which was delivered at the end of March last year, is over 90 percent occupied and we estimate that at this point at least a third of the second phase will be leased by companies with which we have already signed contracts for the first building as part of their expansion process. We have signed contracts with over 18 compa-

nies, many of which are active in IT, against regional cities in Poland and the BPO and services,” Sandor told BR. Czech Republic in attracting such inTenants include 3Pillar Global Romania, vestors, believes Galatanu. “As long as Bosch, Yardi, National Instruments, cities in Romania remain competitive COS and TUI. in terms of labor and occupancy costs, In the last building of City Business they will continue to attract the interest Centre in Timisoara, tenants have a of companies looking to open an office similar profile – mostly IT and BPO in the region,” she said. companies expanding their existing ofTalking about potential new investfices. One thing is for sure, says the ments in the office segment, Sandor businessman, IT is the most efferves- says that although the office projects he cent industry at the moment. is involved in in Timisoara and Cluj“We have IT tenants, for example Napoca post occupancy rates of 98 per3Pillar Global which has offices in both cent and over 90 percent, respectively, projects and which this year is expand- these cities’ limited workforce has being its operations and will increase its come an issue. The IT industry in parnumber of employees by 35-30 percent. ticular is experiencing this, he believes.

Being flexible about our tenants’ ex- “There is room for new projects, but the pansion possibilities was a key princi- potential is not unlimited,” concluded ple when we came up with the concept the businessman. for the two office projects,” he added.

On the short and medium run, the supply and demand for office space in the main cities outside Bucharest is bal… and the people problem A well trained workforce and lower anced. However, the market’s developwages than in Bucharest have been and ment on the long run depends on the will continue to be one of the main workforce and the infrastructure these competitive advantages of university cities offer investors, said Paduroiu. “In cities like Timisoara, Cluj-Napoca and cities where the unemployment rate is Iasi in attracting IT players and out- almost zero, it is becoming increasingly sourcing companies. But for how long hard to find workers,” he commented, will this continue to fuel the country’s adding that one solution would be to regional office market at growth rates encourage commuting between regional poles and smaller towns within similar to the ones posted so far?

Just as Bucharest competes against a radius of 50 km. other CEE capitals, the country’s main regional cities compete in their turn simona.bazavan@business-review.ro

www.business-review.ro Business Review | April 2015

10 real eSTaTe

accor plans to double local hotel network in five years’ time French hotel group Accor is preparing to kick-start a new development phase on the local market, laurent Picheral, CEO of hotel services Central and Eastern Europe with Accor Group, tells BR. ∫ SImona Bazavan After Polish hotel group Orbis, of which Accor owns 53 percent, took over the management of the Accor hotels in Central and Eastern Europe, the French group is now preparing to enter a new development phase in Romania.

“Romania has huge development potential but up until now this has been too slowly exploited. Now we are entering a new era and we have a new approach to development. Accor is the number two on the local market in terms of rooms, but we want to become number one,” Laurent Picheral, CEO of hotel services Central and Eastern Europe with Accor Group, told BR. In short, the group plans to double its local presence over the next five years, an ambitious target judging by the fact that the four-star Mercure hotel inaugurated last November was its only new opening in more than six years. In addition to this, the French hotel group has six other hotels in Romania, four Ibis units, a Novotel and a Pullman. Of all the seven hotels Accor owns only one location, the Novotel, with the others operated under franchise or management contract.

Now, Accor is not only looking to considerably speed up expansion through new franchise and management deals but is also planning to invest its own capital in hotel development on the local market.

Why this change of approach? “We

have created within Accor two structures – hotel service and hotel investment. Before, development was to be done only via franchise or management. These structures now give us much more strength and we are ready to become one of the biggest investors in the hospitality sector in Europe. So, is Accor ready to invest, to buy something here? The answer is yes. We are open to any opportunity to find a nice return on capital employed,” said Picheral.

Considering that four- and five-star hotels represent over 80 percent of the local hotel market, Accor sees development potential on what Picheral calls the mid-scale economic segment where it has several brands it could introduce locally, he added. “There will be new brands, like Mercure for example. Of course Ibis is very well known and so is Novotel and Pullman. These are brands that are already established in Romania. But we are missing Mercure and Ibis Times, which is also a very joyful, trendy, dynamic brand – very much in the same way life in Romania is,” he went on.

Accor is considering opening new hotels in Bucharest as well as outside

the capital. “Romania is a big country with a big population. One can have a mix of pure leisure in the Black Sea or in the western part of the country and business in Bucharest. Overall, the market offers a very good balance between leisure and the MICE (e.n. meetings, incentives, conferencing, exhibitions) segment and this is a huge advantage. There is also the domestic market which is an important base. We are interested in a market that is not totally dependent on the international market,” said Picheral.

All this and the country’s economic growth over the past years puts Romania’s on Accor’s expansion map, he added. “Romania is a very dynamic market with great potential. I am quite convinced that we have to ride this wave now. Ten years from now it will be too late,” he added.

a touch of Bucharest The four-star Mercure hotel in Bucharest opened last November following a EUR 9 million investment, said representatives of the Dogariu family, which owns the hotel, at that time.

They also own the Dentotal Group

which in addition to private dental healthcare has invested in the import and distribution of dental equipment.

The owners’ only other real estate investment is a five-storey office building where the Dentotal group of companies is headquartered. Should the Mercure hotel post positive results, the Dogariu family will consider similar investments, they said last November.

The owners expect the hotel to generate an annual turnover of about EUR 600,000 to EUR 700,000 and to recover the EUR 9 million investment in about seven to ten years. Out of the entire sum invested, EUR 6 million was a loan from Garanti Bank.

Mercure is a non-standardized midscale hotel brand owned by Accor, which enables each unit to be customized. Given that the 114-room hotel is located on George Enescu Street in downtown Bucharest close to the Romanian Athenaeum, the management has opted for a music-based theme.

In addition to the 114 rooms, the hotel also features three conference halls and a restaurant. simona.bazavan@business-review.ro

www.business-review.ro Business Review | April 2015

real eSTaTe 11

aDverTorIal

nGB Distribution Center to complete second development phase this year Confident in the potential of the local industrial and logistics market, N.G.B. Construction & Management, a private and fast growing investment group, is completing this year the second development phase of its 50,000 sqm NGB Distribution Center in Bragadiru, located only 9km away from Bucharest’s city center.

Facts & Figures:

Technical Specifications:

l Land surface: 150,000 sqm l Built area: 50,000 sqm

l Building type: concrete and steel with sandwich panels / metal sheets l Clear height: 8m-12m l Drive in gates: +12 (sectional automatic doors "HORMMAN") l Loading Docks: at tenant request l Fire protection: hydrants / smoke detectors / fire alarm / smoke vents OR Sprinklers l Electricity (+600KVA), Heating (Gas)(offices / optional at W/H) l Sky lights l Treatment tanks fot waste waters, well for water l Security: 24/7 guards, surveillance cameras, Perimetric fencing l Direct Railway Access l TIR parking l Offices: 1200sqm l Units starting with: 800sqm

l Flexible design l Possible future extension l Ring road direct access l Direct railway access

NGB Distribution Center is being developed in three phases. Phase One, consisting of warehouse D1, has already been built. Phase Two consists of warehouses D2, D3 and D4 and Phase Three will offer builtto-suit solutions.

The existing premises offers flexible and efficient logistic and industrial facilities built according to the modern technical specification

Project History In 2009, NGB decided to re-invest in the Romanian market by developing the industrial properties the group owns. The group decided to invest in its property in Bragadiruknown as the NGB Distribution Center. In 2011, Phase 1- an area of 6,100 square meters was completed and immediately rented out. This demonstrated that the property’s position had value and a positive future.

Project Summary The NGB Distribution Center is currently positioned on a 15ha industrial property privately owned by the group and will consist of a total built area of 50,000sqm. NGB is looking to develop and complete Phase 2 of the NGB Distribution center, through the construction of its’

fourth warehouse D4. In 2011, N.G.B had successfully completed building Phase 1 (6,100sqm) through the construction of its’ first warehouse D1, and upon completion rented the entire space to a multi-national at the market price. The current project undertaken by NGB consists in developing and renting out Phase 2, 18,000sqm of warehouse space to the market, of which 3,000sqm (warehouse D2) has been already built and completed in March 2015, and another 3,000sqm (warehouse D3) will begin construction in April 2015 with an estimated completion date of September 2015.

These previous projects have been built entirely by NGB without any banking facilities. The final warehouse

space to be built, namely D4, covers an area of 12,000sqm.

Project location Located in the southwest part of Bucharest, NGB Distribution Center is ideally positioned within Bragadiru area, along the Ring Road of the city, at only 9km from the city center.

It has a strategic position and offers good visibility and easy access to the city.

The project is interesting for a wide range of companies, from light industrial and distribution companies, to service providers.

The location assures an extensive number of suppliers and a high availability of quality workforce.

about the developer N.G.B. Construction & Management is a private and fast growing investment group whose primary focus consists of Aggregates, Building Materials and Concrete operations, Real Estate and management services and Energy in Eastern Europe.

The group has become a trust-worthy name in the region for over 30 years. The Group is based in Bucharest, Romania since 1995.

NGB is looking to develop their PL Distribution Center, 11,000sqm of BTS warehouses in Popesti-Leordeni next to PepsiCo in 2016, as well as their other industrial properties in major cities in Romania and Serbia.

www.business-review.eu Business Review | April 2015

12 IT

OPINION Alexandru Molodoi, CHIEF TECHNOLOGY OFFICER AT IDEA CITY

How secure is my data in the cloud?

As more and more Software as a Service (S-a-a-S) solutions become available on the market, with prices coming down due to competition and the big players trying to get as high a market share as possible, the financial aspect of the decision to adopt the cloud is no longer an issue. Instead, security concerns still deter high numbers of potential customers from taking the decision to switch.

We should take a look at what security involves in the first place. In its simplest form, information security is about confidentiality. As long as the data is only accessible to the people they were intended to be accessed by, we can say that this is confidential.

There are three main aspects of this.

One is access isolation between the organization’s employees: some users should be able to access some data; others must not. From this point of view, there are minimal differences between a traditional, on-premises solution and an in-the-cloud one. As long as access is configured correctly, there should be no differences.

Then there are potential data breaches from outside of the organization, from third parties. The cloud seems to have a weakness, since the cloud provider supposedly has access to customers’ data. Some cloud providers manage this by decomposing data structures so that the system administrators that operate the datacenter cannot identify a specific customer’s data; they only see chunks of data from all customers mixed together. Other cloud providers prefer to keep encryption keys only on customers’ devices, so they are unable to access customer data kept in their datacenters. As long as the encryption protocol is trusted, there is no way the provider can see the actual data. On the other hand, leveraging economies of scale, cloud providers can employ both the latest technologies in terms of security and the best security specialists, while for individual organizations this can become overkill.

Then there is availability. Users that have been granted the right to access data must be able to do so whenever they need to. The cloud seems to introduce a weak point by requiring internet access from the organization’s premises in order to access data, while onpremises solutions are local and only need a local area connection. But in today’s world when organizations are flexible in allowing or requiring employees to be mobile, having data on the premises is more of a burden than an advantage. In order to provide reliable access from anywhere via the internet to on-

premises data, an organization needs expensive redundant incoming connections to the internet. While accessing data in the cloud from inside the organization also requires a redundant connection to the internet, this is an outgoing redundant connection which is much, much easier and cheaper to get. Also, cloud providers can employ latest technologies in data resiliency and availability in order to provide minimal downtimes for access to data, which can have burdensome costs for smaller organizations.

The third aspect of data security is integrity. Organizations need to be sure that data are not modified at all by unauthorized parties or modified in undetected ways by authorized parties. The advantage of on-premises solutions is that often data are not required to be in transit over the internet and that fewer people have access to back-end servers.

On the other side, cloud providers can afford to implement more advanced tools that can provide integrity and authenticity for data. As an added benefit, providers that employ data encryption with keys stored only on their customers’ devices, automatically provide data integrity for both storage and in transit.

One important factor contributing to the security of data stored in the cloud is that cloud solutions are especially attractive to attackers because of the impressive amount of data that can be exposed once a successful breach takes place. Although cloud providers should theoretically be able to afford to employ the most advanced security mechanisms, hackers use targeted attack techniques, which are harder to counteract.

Now taking a quick look at how attackers can compromise data security, we have identity theft, denial of service, redirected attacks and data loss as the most frequent.

Identity theft is the type of attack that interests us most from the perspective of cloud versus on premises and if you read technology news you cannot miss it.

Two main categories are the most prevalent: phishing attacks that try to steal login credentials directly from users and database injection attacks that get the credentials from the backend of the application. Either way, while banks and other large organizations used to implement two-factor authentication by use of dedicated hardware tokens, cloud providers are moving to a new genera-

tion of two-factor authentication by leveraging the hardware that is omnipresent nowadays – the mobile phone, either dumb (by SMS) or smart (using apps).

Neither one is perfect from a security standpoint. For example, phishing attacks are harder but can still be successful with two-factor authentication mechanisms.

Although not necessarily part of the basic definition of data security, there is one other aspect that determines how captive an organization becomes in a provider’s cloud. It’s usual practice for providers to make it difficult for a customer to take their data and just switch providers. Some of them offer at least a means through which a customer can download all data and access them offline with reduced functionality. Third parties have also emerged that allow for data backup from supported cloud providers and data migration between the largest ones.

To counteract data security concerns, there are also technologies that allow for data synchronization between an organization’s devices (peer-to-peer), with or without central storage and most important without storage on a third party’s datacenters as in the case of cloud providers. In terms of architecture, they are to cloud providers as Bitcoin is to traditional banking systems.

There is definitely no one size fits all in terms of architectures for storing and transmitting data securely. Fair technology consultants expose all data security implications of current solutions so that each customer can choose the most appropriate one based on their needs. What is certain is that in the pursuit of 100 percent security, the cloud brings costeffective, scalable and secure enterprise software solutions into the hands of organizations of all sizes, from two to tens of thousands of employees without the big initial investment. Advanced software solutions with advanced security mechanisms are available from day one to organizations that choose to embrace the cloud.

About the author: Alexandru Molodoi (alexandru@ideacity.ro) is chief technology officer at Idea City.

He has been ISO 27001 information security auditor since 2008. Aside from assessing website security for individual websites, he has conducted two aggregate evaluations of web security for websites and web applications in Romania (2008 and 2014).

www.business-review.eu Business Review | April 2015

13

Tax evasion fight ‘risks making life hard for all taxpayers’ The latest changes to VAT and profit tax legislation, implications of recent measures taken to fight fiscal evasion, changes to international tax reporting rules and the need to improve holding legislation were some of the topics discussed by participants in BR’s 14th Tax & Law conference which took place in April.

The fiscal authorities’ fight against tax evasion should not generate collateral victims, argued participants

∫ SIMONA BAzAvAN The last month has seen tax inspections by the National Agency of Fiscal Administration (ANAF) make the headlines, and while this is good news for the fight against tax evasion, there are also increasing concerns about abusive practices by ANAF, said event participants. In their attempt to find and hold accountable companies who evade tax, the authorities are making life harder for all firms, especially those that already comply with the law, argued some attendees.

“This remains a problem In Roma-

nia: the fact that laws continue to be drafted for companies that already comply and don’t reach those who don’t,” said Dragos Doros, director of taxation services at KPMG Romania.

“The moment the fiscal authorities want to set up filters to prevent tax evasion what they are really doing is erecting barriers to doing business in general.”

Talking about tax inspections, Luisiana Dobrinescu, lawyer with Dobrinescu Dobrev SCA, said the authorities generally have a ‘presumption of guilt’ approach and many of the measures taken against firms suspected of fiscal wrongdoings are not

only counterproductive but often abusive.

“We need the legislation to support the fight against tax evasion, but this should not generate collateral victims.

The existing legislation disadvantages taxpayers in relation to the fiscal authorities,” she stressed.

And while the new Fiscal Code draft, if adopted, will introduce several incentives meant to attract new investors to Romania, the poor relations between the authorities and taxpayers act as a deterrent. “ANAF’s attitude towards taxpayers is the greatest setback to trying to convince investors that staying in Romania is

good business,” said Gabriel Biris, partner at Biris Goran SPARL. Unfortunately the new Fiscal Procedure Code which, if adopted, will bring several changes to the relationship between fiscal authorities and taxpayers, doesn’t bring much good news for the latter, although some of the changes do sound promising. “It was mainly drafted from the fiscal authorities’ perspective and less from the taxpayer’s,” said Silviu Badescu, tax director at NNDKP Tax Advisory Services. For example, a change made to the Fiscal Procedure Code introduces the “in dubio contra fiscum” principle, which means that when the

www.business-review.eu Business Review | April 2015

14 1

2

3

Gherghel, head of the tax department at Noerr Finance & Tax. One of the benefits that companies investing in R&D have been offered is an additional 50 percent deduction of the eligible expenses for R&D activities in the calculation of profit tax.

The bigger picture

4

5

6

1. Cristina Saulescu, tax manager at PKF Finconta, 2. Alexandra Smedoiu, senior manager, fiscal consultancy, PwC Romania, 3. Gabriel Biris, partner at Biris Goran SPARL, 4. Dan Schwartz, managing partner of RSM Scot, 5. Mitel Spataru, tax manager at Finexpert, 6. Silviu Badescu, tax director at NNDKP Tax Advisory Services

law is unclear it will be interpreted in favor of the taxpayer. However, this is a measure of last resort and only applies after the authorities have used all the other means available to them, explained Badescu.

Fiscal changes this year Present at the event, Oana Iacob, head of service at the department for VAT legislation within the Ministry of Public Finance, talked about the main changes to the VAT legislation coming into force this year. One of the most important ones is that as of January 1, telecommunications, broadcasting and electronic services will have to be taxed in the country where the customer is registered, regardless of whether the customer is a business or individual, she explained. Other VAT related changes coming into force this year have to do with the determination of the VAT taxable base, the registration or annulment of registration for VAT purposes and cutting VAT to 9 percent for accommodation services.

However, one of the most hotly debated matters during the event was the changes to the criteria for registration for VAT purposes triggered by several orders of the president of ANAF (“OPANAF” 17, 19, 18,112/2015).

As a result, in order to register for VAT

purposes, but maintain existing VAT registration numbers, companies established under Law No. 31/1990 must demonstrate both the intention and the capacity to perform economic activities by submitting form 088.

While the measure is meant to address tax evasion, it also creates difficulties and increases bureaucracy for complying companies, argued participants.

“Someone thought about ways to filter tax evasion and came up with this form. My only suggestion to the president of ANAF would be to ask those who came up with it to actually set up and register a company for VAT purposes, especially a company with foreign associates,” said Doros, adding that he expects EU infringement proceedings against Romania for this measure as it is a barrier to doing business.

What creates most problems in practice is that the criteria based on which ANAF accepts or rejects a company’s VAT registration are unclear, said Mitel Spataru, tax manager at Finexpert. “These criteria are not transparent and there are no instructions about form 088,” he protested.

The now famous form 088 has to be submitted not only by firms that want to register for VAT purposes but also by ones that undergo ownership

changes, said Ioana Hockl, partner at ZRP Tax. “Companies that have more than proved their capacity to perform economic activities find themselves in the situation of having their VAT registration number canceled and having to undergo this bureaucratic and discretionary process once more.

This is not normal,” she commented.

Registered sole traders, too, have good reason to complain, said participants. Should the new Fiscal Code pass in its current form they will have to pay higher taxes, noted Alexandru Aron, executive director of the Freelancers' Associations. “A registered sole trader (PFA) currently has to invoice EUR 68 / hour in order to earn EUR 50 / hour. If the Fiscal Code Draft is passed, the PFA would have to invoice EUR 88 / hour to earn the same amount.” Not all of this difference can be passed onto the client, meaning sole traders will lose one of their main competitive advantages, lower prices, he pointed out.

One of the few pieces of good news for taxpayers this year has to do with the tax on profit. “After more than two years the norms for research and development (R&D) activities have finally been approved. This is the most significant change in the area of the tax on profit and it is one for the better I would say,” commented Florin

Increasing transparency is not only a target of local fiscal authorities but part of an overall trend in OECD and EU countries, said Cristina Saulescu, tax manager at PKF Finconta. Global pressure to reduce tax avoidance by increasing transparency will lead to several changes in reporting standards which Romania too will have to implement, added Alexandra Smedoiu, senior manager, fiscal consultancy, PwC Romania.

Transfer pricing is only one of the areas that will undergo such changes.

Groups of companies will also have to include a country-country report in their transfer price documentation which will feature extensive financial information including, for example, information about royalties, said Saulescu. Other changes will have to do with improving the exchange of information at international level, double taxation treaties, limitations to deductibility and new anti-abuse measures, noted Smedoiu.

While compliance with international tax reporting changes is mandatory, Romanian authorities should also consider following the example of other European countries and upgrade the local legal framework to accommodate more foreign investors. One area where the state could do that is the holding legislation, said Dan Schwartz, managing partner of RSM Scot. Romania took the first steps in this direction last year and under certain conditions local holding companies now benefit from profit tax exemptions for revenues from dividends received, the sale of shares and the liquidation process. Should the Fiscal Code draft be passed in its current form it will include another measure meant to support holdings – dividends received from Romanian companies will be non-taxable. However, despite such steps forward, Romania still doesn’t allow fiscal consolidation and it still taxes revenues from interest rates, added Schwartz.

Overall, promoting a holdingfriendly legislation would be an important step forward for Romania’s economic development, he urged.

“The tax cuts included in the new Fiscal Code draft would reach their full potential if the holding legislation were correlated accordingly. I’m not necessarily an optimist, but I want to believe that in the context of a new Fiscal Code there is a higher chance of seeing more foreign companies registered locally, provided that form 088 is also changed,” concluded Schwartz. simona.bazavan@business-review.ro

www.business-review.eu Business Review | April 2015

TAX&LAW 15

OECD strengthens recommendations on transfer pricing documentation

Teodora Alecu, KPMG in Romania, Director Transfer Pricing Services

In 2014, the Organization for Economic Cooperation and Development (“OECD”) began making recommendations to Member States for the implementation of certain actions aimed at limiting base erosion and profit shifting, known as “BEPS”. The project includes 15 actions, representing 15 areas of regulation that allow states to monitor data which has a fiscal impact, i.e. an impact on the corporate tax base in a particular jurisdiction. Romania is not a member of the OECD, but, in practice, implements most of the OECD’s recommendations into local legislation. Consequently, BEPS is relevant to Romanian taxpayers.

The 13th BEPS action promotes a change in existing rules on transfer pricing documentation. As provided in the September 2014 report published by the OECD and endorsed by the G20, Guidance on Transfer Pricing Documentation and Country-by-Country Reporting, there are three main sections which should normally be included in the Transfer Pricing Documentation of a company. The first section includes what we called until now the “Master File” or the group file, and focuses on information relating to the group structure, activities and strategy, as well as the way in which the methodology and transfer pricing policy have been implemented.

The second section includes what was previously known as the Company file or Country file. This contains the documentation of the transactions and activities carried out by the local entity.

Under the OECD’s recommendations, a new third section has been introduced; Country-By-Country Reporting. This includes statistical information relating to the results obtained by each group entity (from every country), the number of employees and the company’s capital. All this statistical information, as well as the extended infor-

mation that must be presented in the Group File (the so-called “Masterfile”) aims to provide more transparency in relation to the locations where transactions take place, where substantial operations are carried out within the group as well as the locations where the activity takes on a more formal nature.

The timely submission of the CountryBy-Country Report aims to provide fiscal authorities with relevant information relating to the profit centres of the group, but most importantly the centres that create economic value, i.e. which are the group’s entities and which of these concentrate a larger number of employees, where the capital is based, as well as who owns the tangible and intangible assets. The fiscal authorities will be particularly interested in establishing whether a company or a branch operating in a particular country has incurred losses if, at the same time, other group entities have registered profits.

The report will enable fiscal authorities from all relevant jurisdictions to share this information.

In 2016, countries will begin to implement the provisions that will require the gathering and presentation of all this information in the Country-By-Country File into local legislation if they decide to follow the OECD recommendations. The goal is for this reporting format to be implemented consistently by OECD Member States.

In 2020, the OECD report issued in September 2014, Guidance on Transfer Pricing Documentation and Country-by-Country Reporting (or the September Report), will be reviewed.

A series of agreements between tax authorities from different countries is expected to be concluded, as a step forward in applying the agreements for cooperation and information exchange that are already in place.

The OECD’s recommendations are designed to address growing demands from fiscal authorities for information relating to the organisational structure, economic structure and fiscal stance of multinational group entities, to enable a more detailed analysis to be made of transactions carried out by local companies with their related parties in this global context.

On the other hand, multinational companies have raised the question of data confidentiality. Based on the new reporting rules, fiscal authorities from one state would have access to financial information,

not just to information on the activity carried out in other states by a certain multination group.

The good news is that the OECD recommendations provide a threshold for consolidated turnover. Consequently, multinational groups with an annual consolidated turnover of up to 625 million euros will not be required to prepare such detailed reports.

The Country-by-Country Report is a statistical information source which will also be an instrument to monitor the company’s profile and a way to determine the degree of risk raised by transactions carried out with affiliated parties, from a transfer pricing perspective.

Consequently, a high level of risk is likely to generate increased attention from the local fiscal authorities, who would look more closely at the transactions and possible distortions of the corporate tax base.

The Country-by-Country Report will indicate the level of revenue the group generates in each jurisdiction from transactions with affiliated parties, on the one hand and on the other hand from transactions with independent parties. Consequently, the volume and type of activity in each jurisdiction in which the group operates will be transparent. If the business model provides that the local producer should sell to third parties, any atypical situation where the producer of the group sells only to related parties will be easy to identify.

Furthermore, the report will provide information on the loss or profit registered by group entities, and also the corporate tax paid in every jurisdiction. This will facilitate an analysis as to whether there is a balance between the corporate tax paid in a certain state compared to other states.

Tougher requirements will also be introduced in relation to the presentation of information on research and development activities, intellectual property rights, and the number of royalty contracts.

In conclusion, the 2016-2020 period will be characterized by an increase in investigations by fiscal authorities to help them determine where economic value is created, and where transactional substance can be found. The key principle is that the remuneration needs to correspond with the economic value created in the commercial chain of the group. If a transaction lacks substance, it could be reclassified, along with the mechanism used to determine prices between related parties.

BRIEFS vAT on food to be cut to 9 percent from June Value added tax will be cut to 9 percent in June for all food products, including non-alcoholic drinks and catering services, announced the prime minister, Victor Ponta, in early April. The government also plans to reduce the standard VAT rate to 20 percent in January.

The measure was welcomed by representatives of the food industry, according to whom its impact in the economy will be greater than a general VAT decrease from 24 to 20 percent. Representatives of food employers’ association Romalimenta said that lower VAT on food would limit tax avoidance, which in turn will help the economy by increasing consumption and boosting local production. The Ministry of Finance also estimates that the VAT cut will help create an additional 20,000 jobs.

According to ING analysts, the reduction will lower the annual inflation rate to -0.3 percent in December against an initial estimation of 2 percent.

Senate postpones Fiscal Code talks The Senate commission for budget, finance, banking and capital markets has announced that it has postponed talks on the Fiscal Code draft until the last week of April after dozens of amendments were submitted by various professional associations and organizations. Viorel Arcas, the commission’s president, said that each amendment would have to be closely analyzed with the Ministry of Finance to assess its budgetary impact. He added that this delay would not affect the law’s initial timetable.

Party financing draft to be resent for presidential approval by May 15 Parliament will reexamine the draft law on the financing of parties and electoral campaigns after the president, Klaus Iohannis, refused to approve it and sent it back to Parliament, according to Mihai Voicu, PNL MP and president of the joint commission for drafting electoral laws. He said that the issues raised by the president related to parliamentary procedures and had nothing to do with the law’s core aspects, namely financing parties from the state budget.

Voicu added that although the PNL doesn’t have a majority in the commission he is certain that the other parties will agree to make the changes requested by Iohannis and that the draft will be resubmitted by May 15.

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16 intERViEW

Voucher market to get a bonus in 2015 Local employers resuming recruitment and increasing extra-salary benefits for their employees, combined with an expanding appetite for new products such as gift cards, will return the local voucher market to growth in 2015, Vianney Du Parc, GM of Edenred Romania, tells BR. ∫ Simona BazaVan How much do you estimate the local market for extra-salary benefits is worth and how does this compare with previous years?

The voucher market’s annual value is estimated at EUR 1 billion, given that 2 million employees, meaning almost half of the country’s employed population, receive meal vouchers from their bosses. Companies generally grant each employee one meal voucher per working day with a legal daily value of RON 9.35. The monthly value for these meal vouchers is approximately RON 205, which amounts to 30 percent of the minimum wage.

Besides meal vouchers, there are several other types of benefits: gift vouchers, gift cards, childcare vouchers and social vouchers. Approximately 10 percent of the market is represented by gift vouchers and cards. Edenred is the only voucher issuer that also offers a prepaid gift card, as a digitalized alternative to gift vouchers on paper.

There is still room for growth, as more and more companies understand the benefits of granting meal vouchers as well as other types of vouchers to their employees. They increase employees’ motivation, loyalty and purchasing power at a minimal cost, thanks to the fiscal facilities.

As for 2015, we feel that the market is slightly growing and we hope we will gain a significant part of it.

Where will this growth be coming from?

We expect the market to resume growth, both for meal vouchers and for gift vouchers and cards. More and more companies are coming out of “survival mode” and are seeking ways to enhance employee motivation, while keeping costs under control. Employee benefits such as meal and gift vouchers are a great solution because they answer both needs, so we expect more and companies to incorporate vouchers in their HR policies, especially SMEs. The increase in the number of employees in the overall economy is also a growth driver for employee benefits, and 2015 brings a more optimistic outlook in most industries, in terms of hiring, new investments and new jobs.

Companies are beginning, for the first time since the economic crisis, to offer their employees more benefits, and meal vouchers are currently the most efficient and the most commonly used benefit in Romania, followed by gift vouchers and cards.

What do you expect to be the most impor-

CV Vianney du Parc

tant developments for this industry this year?

In 2015, one of the main developments will be an increase in the volume of gift vouchers and gift cards, because more and more companies are planning to resume the awarding of special bonuses for Easter and Christmas. The economy is growing, and so employers are reevaluating their benefit policies – the lessons learned in the aftermath of the economic crisis have not been lost and firms are now seeking financially efficient solutions. Gift vouchers are ideally placed to answer this need, because they have very advantageous tax exemptions.

Gift cards, which are currently only in Edenred’s product portfolio, are even more appealing, as they have the most significant tax exemption framework (being exempt also from the tax on employees’ salary, of 16 percent, within a RON 150 limit).

However, the most important event in the vouchers industry in Romania in 2015 will be the long-awaited introduction of electronic meal vouchers, namely meal cards. The law enabling the issuing of meal cards was passed in 2013, and its bylaws, without which no law can be applied, were approved by the government this January. Edenred has already announced the launch of the first meal card in Romania, under the same brand as its paper vouchers: Ticket Restaurant. As soon as we receive the authorization based on the law which requires issuers to comply with specific criteria, we will provide this product.

Edenred will provide meal cards as well as meal vouchers (the classic paper format), and employers will be able to order both options.

And talking about the legal frame-

work, in other countries there are other types of benefits which enable companies to increase the purchasing power of their employees: tickets or cards for sports and culture, tickets for childcare (up to 10-12 years old compared to 2 years old in Romania) and tickets for domestic services (household, care, babysitting, DIY, etc.) We hope that in the near future, we will have the legislative framework to align to these European trends.

What is the most popular type of extrasalary benefit among Romanian employers at the moment and why?

The most popular employee benefit is definitely, and by far, the meal voucher.

As I was saying, over 2 million employees, which works out as almost half of the employed population, currently use meal vouchers.

The reason for this is simple – meal vouchers are very efficient for companies from the financial perspective, as they are exempt from taxes on salary and, at the same time, extremely useful to and popular with employees. In a country where one out of five employees is paid the minimum wage and 40 percent of a family’s income is spent on food, meal vouchers are extremely important. For many employees, meal vouchers are the only means to afford sufficient food.

Currently, however, the value of a meal voucher has fallen well below the cost of a lunch, especially in urban areas.

Its current value is only RON 9.35 per day, and it has not been updated for the past two years.

The purchasing power of a meal voucher in Romania is very low compared to other European countries – in Romania, one can buy two bottles of milk with a meal voucher, while in

He was appointed general manager of Edenred Romania this March, replacing Pierre Gagnoud who took over the management of Edenred Spain after a two-year mandate in Romania.

Du Parc is a graduate of the Paris Business School and has a post-graduate qualification in finance. He joined the Accor Controlling department in 2005 after having previously worked for Deloitte as financial auditor. In 2008 he was appointed financial director of Accor Hotels Eastern Europe and two years later became the financial controller for Central Europe and Scandinavia at Edenred.

Before coming to Romania Du Parc had worked as managing director of Edenred Poland since 2011.

According to company data, Edenred is the market leader, both in Romania and internationally, in the field of prepaid vouchers and cards for employee benefits, expense management and public social programs.

France you can buy 10 bottles, in Spain 12, and in the Czech Republic 7.

What is the most popular bonus for Easter among Romanian employers?

This year marks a revival of special occasion bonuses in most companies and in most industries. Thanks to their fiscal benefits, and to the ease of implementation, gift vouchers are one of the most popular ways for firms to grant their employees Easter bonuses.

Gift vouchers of up to RON 150 per beneficiary at Easter are exempt from social contributions and are only subject to the 16 percent income tax.

This year, we’re seeing a jump in popularity for gift cards, the more modern and elegant alternative to paper gift vouchers. Edenred is the only voucher issuer that has a card already implemented in Romania – the Compliments gift card. Gift cards are preferred by companies active in the services industry, whose employees’ payment habits support this choice.

What is the most popular bonus for Easter among Romanian employers?

We serve over 30,000 client companies and organizations, and we are proud that half of the ten largest employers in Romania are among our clients. Our local market share is 38 percent. simona.bazavan@business-review.ro

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18 CoVeR StoRY-pR

Local pR market shows first signs of real maturity From international names to medium-sized agencies and nimble Romanian players, from market innovation and global awards to a lack of transparency, local PR professionals told BR how their companies are growing and developing in a volatile market and shared their take on the year ahead. ∫ Romanita opRea It’s a market that dominates the regional and continental industry’s awards, proud of the talents it borrowed to the international scene. For instance, only MSLGROUP The Practice, former

known as The Practice, is famous for having received local, regional and global recognition, with over 160 awards and nominations. More than 50 of its campaigns were acclaimed in competitions such as Cannes Lions, the Global and EMEA Sabre Awards, IPRA Golden World Awards, European Excel-

lence Awards and the Romanian PR Awards.

According to market research conducted by Biz at the end of 2014, thevalue of the local PR market is still growing, having not yet reached its total potential, and was estimated at around EUR 30 million last year.

“It’s a growing market, although budgets and business figures haven’t proved it in recent years. When I say growing, I mean accountability and selfconfidence, with professionals that are better equipped now than 15-20 years ago to successfully accomplish the coveted role of business consultants. Some

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CoVeR StoRY-pR 19

Photo: Ilina Schileru

Crenguta Rosu, co-founder of DC Communication

people complain about size, expertise, lack of outstanding campaigns, procedures and so on. Let’s not forget it’s a market that emerged almost from scratch 20 years ago with a couple of enthusiasts that started learning by doing.

And some of them did it quite well given that now, 20 years later, they are still on the market and still competitive,” said Loredana Sandulescu, a veteran media, advertising & marketing journalist. It is also a young industry – the average age of a Romanian PR professional is 30, with most having around 7.5 years of experience in the communication industry, according to research by Biz. “The age dimension can definitely be an asset. As one of the most dynamic professions, with much impact from the internet and the way people communicate, having young professionals on board, who are digitally native and trained to handle new technologies, represents major leverage,” Sandulescu added.

Romanian PR agency DC Communication, which has recently turned 20, was launched by Teodor Frolu and Crenguta Rosu in a one-room apartment in Bucharest. Its first clients were ING Bank and the European Commission’s Delegation in Bucharest, and the first projects were the launch of Multibanking by ING – the first electronic banking service in Romania – in March 1995 and “Townsquares of Europe,” a travelling exhibition by the delegation.

The firm says it has since developed over 2,000 projects for 120 clients in 20 industries and sectors.

In February 1995, when DC launched, there was only one other PR agency on the Romanian market, but by the end of the same year another two had appeared. In 20 years, this number has increased 32 fold, to 128 PR agencies in 2015. In total, the Romanian market is home to 939 entities – companies and independent contractors – that offer PR

Sorana Savu, managing partner at Premium Communication

services, according to official data from “We have diversified our portfolio a tion. And if 2014 was better than 2013, the Commerce Registry. lot and we can say now that we have some expect 2015 to be even better.

Over time, DC has modified its struc- clients from all domains of activity. This “After a period when we experienced a ture and operational methods five times is something that has shown in all our downturn, 2014 proved to be a year of in order to anticipate market transfor- team’s work – from the diversity of so- growth. We had many pitches, we ormations and client needs. lutions offered to current clients to the ganized a larger number of events and The same number of years – 20 – is pitch proposals and new business strat- 2015 is looking even better. In the first celebrated in 2015 by BDR Associates. egy,” said Sorina Mihai, managing part- trimester GMP PR had the honor of reWhen they started the business, entre- ner at Porter Novelli. ceiving ten pitch invitations. We have preneurship was an adventure which For BDR Associates, 2014 had a invested a great deal in digital departthey chose to live by bringing excep- promising start, but the pace slowed ment, we doubled the team, gained five tional people on board. Few know that down in the second part of the year. new clients and underwent a strategic the name BDR comes from the Good “The lack of economic measures to en- process of establishing our vision for the Morning, Romania (Buna dimineata, courage business investments impacted next ten years,” said Ioana Manoiu, Romania) campaign which Catalina the communication projects. Our in- managing partner at GMP PR. Rousseau, president and CEO at BDR dustry faced budget cuts. Overall, we Pundits say 2014 was a more mature Associates Strategic Communication oriented our activity towards pragmatic year, with better targeted PR activates.

Romania & Republic of Moldova man- results expected by the clients, using in- “Pitches, briefs and creativity had more aged during a three-year assignment for novation and creativity to generate re- substance and fees started to reward US Deloitte Emerging Markets. “It was sults,” said Alexandra Mihailescu, real strategic expertise more and tactiin the mid 90s. They were tumultuous partner & senior consultant strategic cal activities less. For us it was a very inyears marked by major achievements in communication Romania & Republic of tense year, when almost all proposals the agency’s life, building a solid basis Moldova, BDR Associates Strategic presented in the first half found a place for our business. In early 2000 we Communication. within clients’ plans in the second half opened an office in Moldova, where we It was a stable year for Premium of the year – a year when more compaformed the first team of PR profession- Communication as well, an agency with nies placed greater importance on diaals. The business has grown over the a long tradition on the Romanian PR logue with local communities and the years, with BDR being a market leader market and which has extended its media, so we also traveled more,” said in a competitive environment, espe- team to support an increasing workload Alina Damaschin, creative leader and cially since European aspirations have from its existing clients. “Our best head of consumer PR at Rogalski Dambecome an option,” Rousseau said. clients are those that allowed us to build aschin Public Relations. Apart from its together – we are looking for clients who prizes at the Romanian PR Awards, the 2014 – challenging, but better really value communication, who have agency also added to its portfolio a complex needs that cover both corpo- SABRE Gold Award for Public Affairs. than 2013 “Every PR agency has started to be a “2014 was a year in which we didn’t get rate and marketing communication and bored at all – full of energy, ideas and who understand communication as a true contender for the advertising, digmany hours of work, and faced with long-term commitment to their stake- ital and social media agencies. The comtight budgets. A year of visible readjust- holders. To them we offer a team of petition has changed and agencies are ments and integrations of services and very experienced consultants, with a di- starting to align their services according regrouping. We gained six new clients verse range of skills and a broad vision to those changes. I think this trend was and kept the ones we already had – Agri- about PR – people who have firsthand very much in effect last year on the crecover, Certinvest, the European Parlia- experience in media and social media ativity of the campaigns. Unfortunately, ment, which were long-term clients, relations, internal communication, con- the fees continue to remain the lowest and Temad, Dumagas and Sandoz for sultancy, digital and corporate commu- in the communication industry,” said which we worked on a project basis. We nication and are able to provide Imola Zoltan, owner at McCann PR. For have a constant team of 22 people and informed advice to discerning clients. the agency it was a difficult 2014, espethe honorary fees are the same,” said Planets don’t align very often, but they cially during the first part of the year, Crenguta Rosu, co-founder of DC Com- sometimes do,” said Sorana Savu, man- but things had balanced themselves by aging partner at Premium Communica- the end of the year. “The team remains munication.

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20 CoVeR StoRY-pR

Ioana Manoiu, managing partner at GMP PR

mostly unchanged, mainly at senior level. We took part in more pitches, we won important contracts, but there were also some clients who didn’t renew their contract for the next year.

We are proud of our campaigns for Coca-Cola Romania, Enel, GDF and HTC, just to name a few,” Zoltan added.

The PR market is in a continuing transformation and some major players are pessimistic about its future. “Traditional PR is nearly dead, with the industry struggling to reinvent itself after failing to prove that it adds value to a business. The PR function has declined in importance and, in some cases, no longer reports to the head of the company. The fees for traditional PR assignments have slipped to historic lows, with most of the business being taken by boutique agencies that have had a meteoric existence. Procurement’s financial-driven logic dictates the selection of PR partners rather than the quality of their proposals,” said Cristi Cretan, general manager at Grayling Romania.

He states a point by adding that in this context, some major PR players have gone for dumping prices in order to grab or maintain market share. Consultancy fees were reduced to a minimum, with the revenue gap being filled by the mark-ups related to intermediating the acquisition of products and services on behalf of the client. Cretan predicts that those pursuing this line of business will be forced to close down, sooner or later.

“Others have tried to reinvent themselves, by specialization or approaching niche sectors, or by embracing the fashionable social media approach. We continued our transformation towards a business consultancy with communication services at its core. Our strengths allow us to engage in complex positioning, regulatory affairs and advocacy projects, or in integrated corporate

communication and public affairs assignments, that aim for a tangible impact on business results. We have expanded the team with two senior consultants, one in the public affairs team and one to lead our digital communication team. We have worked on complex PR & PA assignments in the areas of financial services, energy and pharmaceuticals,” said the Grayling Romania representative.

For MSLGROUP The Practice it was a year with new clients, that had never re-

Oana Bulexa, managing director at MSLGROUP The Practice

When it comes to creativity, Golin on budgets and on the results/KPI, representatives say that last year was which had a strong impact on camone of the best for the agency. It cele- paigns. The pressures of short-term rebrated Christmas in July at AFI Palace sults were never so immense, and the Cotroceni, brought the summer to Casa demands of the long-term so critical.

Lupu, made Varu (The Cousin) one of “2014 was the year of effectiveness; the most famous and viral characters every client was interested mainly in for the website tocmai.ro, launched the the outcomes and the outputs of the Bancpost-Wizz co-branded card at high campaigns. It was a year of big anniveraltitude on a Bucharest-Rome flight and saries. It was interesting to observe how filmed the first video with a mobile an anniversary can mean a new comphone for the Kruger & Matz Romanian mitment for the future. I think that the launch. All these campaigns were greatest impact was seen in the media landscape with the changes at ProTV, the incarceration of Dan Voiculescu and the insolvencies in the print media. All these had and will have a great impact on the communication industry in the years to follow,” added Tomoiaga.

His opinion is shared by Alexandru Paius, senior partner at Image PR, who also believes that nevertheless, consultancy agencies found ways to cope with this, by means of: efficient solutions, creative ideas, successful campaigns and more business know-how gained, which was smartly employed.

For Graffiti PR it meant a time of transformations, for better organizing multi-awarded and helped Golin re- the company and a more attentive look ceive first place in Biz magazine’s list of at the interior of the agency. After six the best PR agencies, and the title of years of sustainable growth, the firm Agency of the Year at the Romanian PR came to understand that further growth at the same pace can only come from Awards.

“Fees were at the same level as 2013. superior specialization. “This is why we Golin’s turnover rose organically, the took a leap of faith and did an unprecespecialized digital communication dented shift for the PR industry: we inservices being an important driver from troduced a new management team. this point of view. The growth rhythm Graffiti PR is now led by six managers, generated by the acquisition of new each with expertise and passion in one clients was also at the same level as 2013,” of the key development areas for our said Monica Botez, managing partner at clients: corporate citizenship (including CSR, sustainability, shared value), corGolin.

When asked, Bogdan Tomoiaga, ex- porate comms, brand strategy, inteecutive director at Graffiti PR, an exclu- grated technology and branded sive affiliate of Ketchum, said that 2014 entertainment,” said the Graffiti PR repwas a typical year for the PR industry, if resentative. “Another interesting thing such a thing exists. That means that it about 2014 was the ‘back to the roots’ was full of challenges: a lot of pressure feeling. We were really happy to see that

“pitches, briefs and creativity had more substance and fees started to reward real strategic expertise more and tactical activities less. For us it was a very intense year, when more companies placed greater importance on dialogue with local communities and the media,” says Alina Damaschin, creative leader and head of consumer PR at Rogalski Damaschin PR. quested communication services. The agency grew its teams of consultants and collaborating specialists.

MSLGROUP The Practice become the most awarded agency at the Romanian PR Award competition and the campaign “Preparing today for the jobs of tomorrow” was considered the PR Innovator of the Year. “2014 marked our entrance into the MSLGROUP family, the biggest communication and PR network in the EMEA region (Europe, Middle East and Africa), a new chapter that comes with new ambitions, complex know-how and new communication tools. Taking a broader view, 2014 also brought many pitches in the market, not necessarily for big or long-term projects,” said Oana Bulexa, managing director at MSLGROUP The Practice.

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22 CoVeR StoRY-pR

Monica Botez, managing partner at Golin

most of our partners put a strong focus on their most valuable asset: employees.

This is why some of our favorite projects of 2014 are internal communication campaigns: from Maggi – Recipes with feelings (a lunch designed to match the feelings of the employees) to Renault Day – a one-day event where Renault Group employees get to know their second family better. We felt really lucky to be part of creating a new story for our clients and their colleagues.”

For Image PR, 2014 was a busy year at the end of which the agency’s members felt satisfied with the results, given the economic climate. After a couple of years’ break from IT&C, they were happy to have won an account in this industry. Moreover, the firm has expanded its portfolio of clients in healthcare communication, in which Image PR has grown a lot in the past few years.

“One of the campaigns with outstanding results is the one we are running for the Romanian Association of International Drug Manufacturers which led to the Ministry of Health's undertaking the opening of the reimbursed medicines list,” said Paius.

As for Sorina Mihai, managing partner at Porter Novelli Romania, 2014 was a time for consolidation and a better shaping of the “game space,” after a series of atypical years from the point of view of performance and professional growth. That proved to be a year of challenges for all the market. “We succeeded in evolving the line of communication services offered, the portfolio of clients and also the superspecialization of the team. We now have expertise in health and pharma, financial services. FMCG, retail, fashion and IT. We have all understood that the role of an agency is no longer about offering specific PR consultancy, but more about the development of the business through coherent and efficient communication solutions. It’s a change of par-

Imola Zoltan, owner at McCann PR

adigm that had started to manifest itself several years ago, but it fully materialized last year,” added Mihai. Other firms were also positive. “I think 2014 was

percent is agency fees. The main business verticals for the agency are healthcare & pharma, IT, FMCG and financial.

MakeSense offers services such as con-

“every pR agency has started to be a true contender for the advertising, digital and social media agencies. the competition has changed and agencies are starting to align their services according to those changes. i think this trend was very much in effect last year on the creativity of the campaigns”, says Imola Zoltan, owner at McCann PR. definitely more generous than the preceding two years. Fees were fair, not too many pitches, a good number of campaigns running both for international and local brands. For us as an agency, 2014 was a good year, especially because it gave us the confirmation that the way the MakeSense business was built starting from 2010 was good. Our engineering approach to the briefs and results-oriented attitude were nicely rewarded,” said Raluca Bailescu, managing partner at MakeSense. 2014 led to a repositioning of her agency, which was communicated in February. The firm has been offering content marketing solutions for some years, especially for clients with B2B needs. “The end of 2013 and the entire 2014 generously offered us the opportunity to put into practice our knowledge in the content marketing field for B2C briefs too. Since creating news and content, distributing them and measuring results became our second nature and main source of fees, we’ve made the changes official,” added Bailescu. Founded in 2010, MakeSense posted a business turnover of EUR 220,000 in 2014, of which 83.4

year, so we are reaping what we sowed.

We are now crafting and planning projects for clients in education & business consultancy, art & architecture, fashion, construction, postal services, HoReCa, and, very soon, we will start implementing projects in two new areas – medical services and tourism,” said Elena Bululete, managing partner at Conan PR. From her neutral viewpoint, journalist Loredana Sandulescu says she has noticed a change in agencies’ approach: more and more PR professionals seem to understand the mechanisms of online journalism.

Many of them answer faster, meet deadlines better and only a few still try to delete bad comments posted online.

“Many PR professionals have already learned a major lesson: one cannot take control over the internet. You can control what you’re saying, not what other people have understood and how they have chosen to disseminate,” concluded the journalist.

tent creation for own channels (white papers, case studies, newsletters) and third channels, management of online communities and traditional communication services (media and influencers communication, internal communication, events organization and management). Over time, the agency has been the beginning of an awarded three times at the Romanian interesting year PR Awards for client campaigns.

“In our industry the beginning of the “Otherwise, in 2014 we’ve shared a year is always very strong and stormy. couple of good news stories and success Plans begin to take shape in the first fees with our clients, we have recruited trimester and they involve, along with one person for our team and kept our the existing clients, new projects and good habit of winning at least one pitches. I don’t want to predict anything award for a campaign that really made as the last seven years have been exa difference for our clients (an internal tremely unpredictable and with a differcommunication campaign for Blue ence between what we projected and Point Telecom),” Bailescu concluded. what we finally executed,” said Another young agency that is grow- Crenguta Rosu. Since the beginning of ing and proving to be successful and 2015 DC Communication has taken part creative is Conan PR, named Small Con- in several pitches and gained two new sultancy of the year at the Romanian PR clients: Piraeus Bank and World Vision, Awards 2013. “The industry felt an en- with annual projects. ergy boost at the end of last year, after a Since the beginning of the year, rather dull and steady first half of the Golin has taken part in many pitches, year. It was probably a teaser for 2015, a became the agency for all Unilever maryear with far better perspectives than garine brands, won the MasterCard 2014. We planted some good seeds last communication account and hopes that

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CoVeR StoRY-pR 23

Sorina Mihai, managing partner at Porter Novelli Romania

the good news will continue. “We’re seeing a significant difference compared to this time last year, from this point of view and we hope that these first three months will be a good indicator of what is next to come in 2015,” said Botez.

In this new digital era, of speed and fast solutions, PR consultants have to be ready to seize opportunities fast, to generate conversation and to handle unseen situations. “There is a lot of talk about digital skills, but beyond that, the PR consultant of today has to prove instant creativity, big synthesis and decision making capabilities. The times of planning that lasted for whole weeks have long passed. Clients need immediate solutions, without compromising on quality,” said Bulexa.

It was a good start to the year for Grayling Romania as well, with several major new assignments in the energy, consumer brands and internet sectors, almost all of them integrating corporate communication, public relations and public affairs projects.

For BDR Associates, the ‘costs sensitive’ trend continues in 2015 for clients in most sectors, and the first months were marked by a sort of stagnation.

“It's hard to predict the future in an unpredictable environment. We do not expect spectacular changes,” commented Mihailescu.

“It started with a lot of pitches, more than the usual amount. This is partly because for every project, no matter how small, almost every client makes a pitch, and because the acquisition department gets involved in the selection process. As a result, the pressure of costs and fees is very big and in many cases the winners of the pitches are the ones that offer the smallest price. This causes difficulties for big agencies, with major overheads, but helps the small agencies with two or three people to win the client,” Zoltan said.

On the long run though, in many cases, the McCann PR representative points out, this is not a sustainable strategy. Small agencies aren’t able to implement or to sustain a big account, from many points of view – cash flow, human resources – and the result are all kinds of wired events, implemented on a small budget, that fail to bring any value to the company or the brand.

The market is undergoing a “mental”

Bogdan Tomoiaga, executive director at Graffiti PR

specialized firms working in tandem with each other,” said Bailescu.

There are also some good and inspirational trends happening at the moment in the market, which bring hope of an even better year. “We’re seeing many more pitches coming from companies that never used anything other than traditional PR, starting to ask for real content strategies and ideas, while knowing that PR will always focus on

“the concept of integration has become elastic, as it sometimes tends to justify campaigns that go far beyond the realm and tools of pR, yet insist on still being called “pR campaigns”, says Sorana Savu, managing partner at Premium Communication. re-opening towards communication. the public. While the last year was about The first months of 2015 have brought HOW we communicate, this one we’re 12 pitches, over six brand integrated speaking more about WHAT we comcampaigns and many courageous plans municate,” Damaschin added.

Turning to the clients that started for Porter Novelli. “The reality is a fast and complex understanding of clients’ the pitches, DC Communication has a requests, very strict daily communica- 60-40 split in favor of entrepreneurs. tion and a functional creativity of the “There is a rise in the entrepreneurial proposed communication solutions. It’s sector and we believe it to be a natural not easy, but agencies that want to be process. Their interest in constant competitive have to adhere to this,” said strategic communication is the result of the maturing of their business,” Rosu Mihai.

Still, things couldn’t be more differ- said.

Most of Conan PR’s clients are also ent from some agencies than others, from GMP PR, which foresees 10 per- Romanian entrepreneurs, a proportion cent growth this year, to MakeSense that is up in the last couple of years, which sees 2015 as more restrained than partly due to the increased competition 2014. “Communications budgets are and need to engage audiences in relehardly growing. The year began with vant ways.

“Entrepreneurs can generate very big fewer campaigns and more challenging and complex briefs. I think that this is business, at the same level as multinathe year of agile businesses, of those tionals. We work for example with who want and have the ability to adapt. Transavia, the biggest player on the RoIt’s a good year for those who can man- manian poultry market. The difference age partnerships, for entrepreneurial, is not in the turnover, but in the type of

collaboration. The multinationals have a formal system and most of the time a pre-established flow of PR activities, while in the case of the Romanian entrepreneurs this format is built from zero from the beginning of the partnership,” said Botez.

Contrary to general opinion, she doesn’t believe that there is a difference in attitude towards communication: many top managers in Romania think like an entrepreneur, they are active and believe in the value and individuality of the communication. Also, many entrepreneurs have been taught business at multinationals, so they have the structure and standards in their professional DNA. “As a proportion, the balance is inclined towards multinationals in the pitching level and the portfolio of clients. But this means only one thing: there is an opportunity for growth in businesses development by local entrepreneurs,” added Botez.

A total different perspective comes from Grayling Romania, which has not received many invitations to pitch from local entrepreneurs, probably because its services cost more than entrepreneurs would like to pay for what they consider a mere reputation building service. Still, Cretan is expecting this trend to change.

The current ratio is 10 percent entrepreneurs to 90 percent big companies, at BDR Associates, as well. “What differentiates them is the communication culture, more oriented towards communication in the case of multinational companies, strict corporate policies and level of resources invested in communication projects,” commented Mihailescu.

The situation is similar at McCann PR, which has only 10 percent entrepreneurial clients in its portfolio. Still, the agency’s representatives are open to start-ups, because they can offer more independence and flexibility. The same

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24 CoVeR StoRY-pR

Cristi Cretan, general manager at Grayling Romania

percentage applies at Graffiti PR as well.

“Besides the more structural aspects, this ‘gap’ also comes from us, the PR industry: for years, we’ve targeted strictly multinationals, talked about yearly plans, briefing, re-briefing, key message structure and complicated SOWs. Our ‘maturity’ exam is to be able to come back to our main task: solving a business problem through a reputation management solution, no matter the scale. It is with this type of philosophy that we took on some very interesting projects in 2014, such as launching two HoReCa start-ups and assisting a software consultancy company in its growth process,” noted Tomoiaga.

A change has also been seen at GMP PR. “While some years ago pitch invitations were 90 percent from big companies and only 10 percent from entrepreneurial companies, things have changed lately. Today we have in our portfolio around 30 percent entrepreneurial companies,” Manoiu said.

“We work with small businesses as well as bigger companies. What brings us together is mostly a common philosophy related to the role of PR in business and in society, in general, how actions should be done and a similarity of entrepreneurial spirit, that we've always shared,” Damaschin commented.

effervescence all the way While some years ago there was definitely a trend of seasonality, even in PR activities and marketers’ business plan, nowadays, looking at the ever changing industry and the amount of projects and after hours involvement, it seems those days have passed. There is no time for slowing down and taking a deeper breath of fresh air. Meetings and pitches come every day, with no trend of taking it easy.

New opportunities arrive every day and keep the fire burning and the work at a high level of attention and ex-

pectancy.

“As of two or three years ago there is no more seasonality in PR, especially if you are working on a monthly fee. On

Alexandru Paius, senior partner at Image PR

themselves no longer allow the com- “The effervescence is the result of the depany to sleep. “If a company can afford sire of all players in the market to to sleep, it’s almost certain that it’s los- change the existing prudence into ing money without knowing,” said strong and decisive steps towards transformation, community activation, the reinstatement of partnerships and more,” commented Rosu.

“there is a lot of talk about digital skills, but beyond that, the pR consultant of today has to prove instant creativity, big synthesis and decision making capabilities. the times of planning that lasted for whole weeks have long passed.

Clients need immediate solutions, without compromising on quality,” says Oana Bulexa, managing director at MSLGROUP The Practice. the other hand, the target of several campaigns – given a smartphone or a connection to the internet – is reachable in every season, regardless of whether it’s the press, the consumer, the authority, etc,” said Imola Zoltan.

The same lack of seasonality is also felt by Oana Bulexa. She believes that some years ago, in the pre-digital era, it was easy to predict or even plan the peaks of activity during the year, because the brands and companies were the ones in control of the communication flow. They had the power. Today the need for communication and interaction is permanent. “There are no more waves of communication, but a continuous stream. Today we have a continuous effervescence and it should be this way. The brands no longer have control; it has shifted to the consumer.

Today’s consumer is more active and more talkative, generating a permanent conversation with the brands. And companies expect an instant response.

They expect good and interesting discussions and reactions,” Bulexa noted.

Consumers who are always awake and have at least one channel to express

Bailescu. At Golin, a year has never been made up of extremely busy months and quiet periods. “The last six years were a continuous seasonality peak for us.

There is seasonality only when it comes to a focus level: traditionally, the beginning of the year is dedicated to strategies, summer is a preparing season and spring and autumn is when the majority of the campaigns take place,” said Monica Botez.

“There are two hot periods in PR – spring (March-May) and the end of the year (October-December). Those are the months when all the clients are active and we work 24 hours, 7 days a week.

Still, there is never a quiet time, maybe just a slower rhythm in August,” admitted Manoiu.

On her part, Crenguta Rosu believes that it depends a lot on the industry and type of activity. For example in FMCG, in spring, there are more and bigger projects than during summer, when there is less activity for B2B and corporate communication. Depending on the portfolio of clients and their activity there are times of maximum intensity of work combined with calmer periods.

new business & strategy Many agencies in Romania are chosen by referrals from happy current or former clients and by the reputation they have on the market. Some work on building and maintaining their corporate PR to really good standards. This strategy works best for new business and pitch invitations.

“Most clients come directly to us, without a pitch process. Only 30 percent of our new clients are gained via a pitch and our success rate is about 70-80 percent. We select very carefully every pitch we enter, mostly depending on how strong the agency’s competence for the problem / opportunity that the client has, but also on the transparency of the pitching process and the budget,” said Bulexa.

At BDR Associates, the new business strategy follows local market developments and opportunities that are occurring in various sectors. They need to be permanently informed on the business and economic environment in order to be able to adjust, and to quickly put together professional competences that fully respond to new market needs.

“Our strategy in new business extends to the Republic of Moldova and other markets, from Lithuania to Central Asia, where the demand for professional communication is now growing, as we believe in long term vision, continuous learning and innovation, in order to be successful. It is always important for us to align our business objectives and financial estimates set for each business year,” added Mihailescu.

Strategy and planning are crucial.

www.business-review.eu Business Review | April 2015

Raluca Bailescu, managing partner at MakeSense

“Moreover, clients have become more fessionals from the creative industries open to investing in research, which is for content that can illustrate the attribthe best approach. Research, strategy utes or the story of the brand, but that and planning make the gold triad for a is firstly useful and relevant to the stakeholders. We have a team in place successful project,” Bululete argued.

In its turn, DC Communication is that functions like a newsroom; they looking for projects that permit strategic identify in real time the communication integration and, at the same time, de- opportunities for our clients,” Zoltan veloping its own communication seg- said.

McCann PR is not the only internaments, for example, community development projects that involve col- tional agency based in Romania that laboration, the management of the in- puts a great emphasis on news and terests of many entities for the benefit pieces of information dealt with properly. In 2012 and 2013 the star of the of common development.

Last year, McCann PR launched a tools used at Golin was The Bridge™, a new business model, PR content – sell- newsroom of the digital era, for listening the client the concept that “the right ing and reaction in real time. “Since content at the right time is the new cur- 2014 we have used Relevance, a tool derency in the interaction with the stake- veloped by Golin for analyzing the poholders”. “We all want to create content, sitioning of the brand, which is very from advertising and digital to social useful for prioritizing the key messages media and PR agencies. And when we and the target audiences. Also, since last succeed in creating relevant content, year we have been focusing on research the majority of the campaigns are short and big data, with support from our term – from three to six months maxi- communication group, through a dedimum – so the outcome is not a sustain- cated resource, but also through a able one. Content distribution is strategic partnership with the research another problem: no matter how rele- company Isense,” said Botez.

The agency is not stopping here. For vant or creative the story is, if it doesn’t reach the right person, at the right time, 2015, Golin has planned to launch a new all the effort is in vain,” the McCann PR digital tool that will help the agency remain one of the top players on the local representative stated.

The agency has remodeled its orga- market.

“Clients need to be advised on a varinizational design in order to be able to offer complete, integrated services in ety of topics and PR has to act as an inthe new communicational landscape. tegrated advisor for the client's business.

First, McCann PR chose to do outsourc- As long as clients are ready and able to ing for research and digital, both from share their business needs, PR is able to the cost efficiency perspective and for a solve them strategically and shape the fast knowledge infusion. The two part- best initiative,” Damaschin added.

In his turn, Cretan says that the stratnerships, with digital 648 and the research agency Nielsen, are not simple egy depends on the client’s business inservices providing contracts. All three terests. Most projects undertaken by agencies work together, in a team, and Grayling Romania are long-term projhave joint responsibility for the out- ects, where strategy is key to success. come. “We have also strengthened the “Those not interested in complex, longin-house design department, which we term projects with real business impact involve in the first stage of the cam- don’t even come to us – they normally paign. We continue to outsource to pro- prefer a smaller and cheaper alternative,”

CoVeR StoRY-pR 25

Elena Bululete, managing partner at Conan PR

said Cretan.

new tools, new powers “We have used extensively the digital communication tools developed at group level (monitoring, sentiment tracking, social media crisis training, etc),” said Cretan.

While GMP PR uses many new monitoring and evaluation tools and has expanded outside Romanian borders, working closely with suppliers from the US and UK, McCann PR has chosen to do outsourcing for the type of services that aren’t usually part of a traditional PR agency – research and digital. “We receive more and more briefs for corporate communication strategies and social responsibility campaigns. Facebook apps are very trendy as well, but most of the time the PR just comes up with the idea, while the implementation (design, programming, etc.) goes to the client’s digital agency. Also, the press release is a frequently requested instrument, although we try to make it as visual as possible using infographics and animations, for online and social media,” Zoltan said.

The teams at BDR Associates are also paying a lot of attention to social media and new market trends. “We have introduced a lot of social listening, research and SWOT-ing brands, as regular tools.

One new tool is the crisis communication simulator in social media, that we could use for specialized trainings in issue/crisis management,” said Mihailescu.

MSLGROUP The Practice has a different strategy. The agency is developing new tools while clients’ communication needs are expending.

The two areas where the agency has invested the most in last couple of years are research and measurement, with “unique instruments for identifying the trends and understanding the customer, but also for measuring the real impact

of companies and the communicational actions realized by the agency,” said Bulexa.

“We try to think of innovation in terms of solutions, rather than tools.

The innovation areas that we’ve put effort into in the last period have been: CSR & sustainability, stakeholder engagement, brand strategy and advocacy.

For the advocacy and media training we are developing some tools that are unique on the market, and we think that they will bring a new approach. At Graffiti PR, we prefer not to have a ‘list of services’ but a collection of case studies that demonstrate we’re walking the talk. Moreover, as always happens when you push for growth and innovation, we have come to the situation where projects need competencies that are outside our area of expertise. This is when we act as a hub of resources and aggregate solutions from the BBDO group, from the Ketchum network or from other partners in the market. We strive to bring solutions, not a ‘menu’ of services,” said Tomoiaga.

When it comes to what clients want, representatives of Graffiti PR think more in terms of business solutions that need to be addressed than in terms of services that are requested from them.

In the area of reputation management, media engagement, branded entertainment and brand strategy were the most common services in the agency’s projects last year. In terms of stakeholder engagement, more and more clients are focusing on employee engagement and corporate citizenship – ranging from sponsorship to CSR and sustainability.

“We put a strong focus on developing skills in these areas, some of them a first for the PR industry,” added Tomoiaga.

With the increasing role of social media and its potential reputational influence, crisis communication expertise, its preventive part especially, has often been sought by clients. “On the other

www.business-review.eu Business Review | April 2015

26 CoVeR StoRY-pR

Alina Damaschin, creative leader at Rogalski Damaschin Public Relations

hand, while storytelling has always been a strength of PR, the last years have put a greater emphasis on how a story has been told and from which angles. Visual content production became a new power for influence and we have adjusted to respond to these new requirements too,” said Damaschin.

Sorina Mihai prefers to see it more as an investment in the development of important competences in terms of strategic thinking, new business aptitudes, digital communication and social media, rather than tools. “It’s mandatory to be permanently up to speed with everything that is new in the industry, with everything that is a step ahead from what we used to know. And that is not only because the client’s expectations are rising, but also because of the level of product and service sophistication that he or she offers the consumer,” Mihai noted.

Meanwhile, Alexandru Paius believes that clients demand solutions and results, not services. Most communication briefs and requirements submitted to the agency do not explicitly call for a specific service. Clients simply state their issues, situations and business objectives and most frequently, their proposal comes in the form of an integrated communication campaign, reaching multiple stakeholders and employing a variety of communication tools.

Paius’s statement is supported by Crenguta Rosu who says that clients want solutions for different themes, from positioning and reputation to launches. The associated services vary based on the selected solution from generating content (text, visuals), to events, media relations, managing social networks accounts, etc. There is also an important shift from mass media and social media to owned media, that will change the way people see and approach communication – a trend that is here to stay.

“There is also high demand for creative services. Seldom it happens for us not to receive briefs for creative declina-

Alexandra Mihailescu, partner & senior consultant at BDR Associates

partners,” said Alina Damaschin.

The concept of integration has become “elastic,” Sorana Savu believes, as

“Clients have become more open to investing in research, which is the best approach. Research, strategy and planning make the gold triad for a successful project”, says Elena Bululete, managing partner at Conan PR. tions such as concepts and visuals,” added Zoltan.

Cretan added, “We’re seeing more demand for integrated public affairs and public relation projects, with a focus on regulatory changes that expand the client’s market share for the benefit of the entire Romanian economy.”

integration above all As the industry and digital power are growing and evolving, the lines between PR, advertising and digital are getting slimmer and more blurred.

Clients want results and integrated strategies and communication and agencies have to be ready to offer just that. By their own statements, GMP PR has developed resources in house, from digital, to creative copywriting and even to BTL. The firm is trying to meet clients’ needs, using its own resources, but there are also situations when it draws on the group’s knowledge, expertise and resources.

“Our first role is PR advisor and strategist. We’re seeing at the same time a convergence between PR and marketing growing in importance. We bring the vision and offer an extended range of implementation services, mainly related to creative execution or digital.

Other services, like events, for example, are implemented through strategic

it sometimes tends to justify campaigns that go far beyond the realm and tools of PR, yet insist on still being called “PR campaigns”. “We believe PR as a communication specialty has a lot to offer in itself and do not look to ‘integrate’ other types of communication, such as BTL, media buying and digital development (we obviously do digital content management, which is within our areas of expertise). Therefore, we tend to work well with the other specialized communication agencies our clients employ and, in certain situations, we have a pool of freelancers we can call on, depending on the type of work needed by the client,” added Savu.

“We usually offer personalized solutions and not a menu of services. In order to do that we have tested on our skin the competences of several agencies and some freelancers and chosen to work with those that share our working values. We listen, we put questions, we observe and once we understand clients’ needs we start building custom solutions using our expertise and our partners’ knowledge,” said Bailescu.

Crenguta Rosu emphasizes that integration is essential at a strategic level, while conceptualizing communication and generating the content. When a concept is outlined, every agency has its own model and approach. “Some services and competences are found in-

house; others are obtained via partnerships with other agencies and freelancers. It’s a model that we have been using on the market for a long time now.

We have in-house the necessary basis for consultancy services and execution, for every segment, and if this exceeds our team’s capacity in volume we start partnerships,” the DC Communication representative added.

Sorina Mihai points out that some projects need very specific competences, from technical fields, that only specialist can have. “The best option is to have a tandem, combining our expertise with the insights offered by an expert, in order to be able to offer exactly the communication solution that our client needs,” said the Porter Novelli representative.

Grayling Romania also has the power to work in-house on extended projects, using its internal resources.

For complex projects that include a legal component, it has a strategic partnership with Tuca, Zbarcea & Asociatii.

the power to adapt to new trends Agencies cannot stay the same, but have to be the first to integrate new trends and convince the client to adopt them, say pundits. DC Communication was a pioneer on the Romanian PR digital world, in the times of e-PR. It had its first online campaigns in 2001 and proposed creating communities and sustaining them through dialogue. “We did this for forums and communities of 15-25 people for the European Commission Delegation, Extranet for Nokia and its partners, Intranet for internal communication and later on social networks such as Facebook, LinkedIn, etc.

We have always watched very carefully, paid lots of attention to new trends and integrated the new channels as was fit.

Sometimes we were more ready for them than the clients were,” said Rosu.

www.business-review.ro Business Review | April 2015

Loredana Sandulescu, journalist at Biz Magazine

Meeting market demand and following have released, with Hoinaru Social its evolution is always important for Media Recap, analysis of the media and BDR. “In our PR projects we approach digital trends,” concluded Botez.

Sorana Savu has a broader view on digital as a tool for disseminating quality content to the right audience, look- the subject, that if you are well versed ing at results which are always in content management, whether it’s translated in business success for the digital or print does not matter, you can client. Correlation between PR and dig- adapt easily. Once you develop digital ital comes natural, but let's not forget platforms for your clients, they are inthat at the end of the day everything is stantly included in any type of commueffort you develop. quantified by the client in return of in- nication “Sometimes, if the communities are crevestment,” explained Mihailescu.

Digital was key for GMP PR as well. ated carefully and you have managed The agency has invested a lot during to gather real fans of the brand, the digthe last couple of years and today, the ital platforms are excellent test platdigital department is the biggest in the forms for national campaigns you want agency. GMP PR has more than 20 to roll out,” said Savu.

Digital stopped being a trend and clients on social media and the team is involved in almost all the agency’s proj- became a necessity in communication ects. “The beginning of the digital era long ago. “However, we must take into found us in a tight relationship with the account that even today there are projdigital agencies in our group, and in the ects or communication campaigns in last five years, our agency has created which the average digital component is the first social media department in the not that extended; it all depends on the PR market. During all this time we have project you have to implement, on the invested in people with new skills and communication campaign's objectives specialized tools and the digital compo- and target audience,” added Paius.

“I think that we’re at the beginning of nent in our campaigns has always had the role it deserves, depending on the a new phase in the communication brand’s needs and the details of the tar- platform development, where the content and the medium are treated with get group,” said Bulexa.

What is more important than feeling equal importance. It’s true that we’ve the trends, understanding and imple- been living the digital hype for a few menting them in your own projects, is years now, but my evaluation is that we creating, seizing and anticipating the still think too often that everything can trends. And this is exactly what Golin and must go digital. We as an industry says it is trying to do locally. It was one still need to gain maturity in developing of the first PR agencies in Romania to content that is truly proprietary for onhave a dedicated person for digital line and integrated platforms that use communication. Raluca Duta is now each medium to its fullest. On the other chief of bridge at the firm and runs a side clients also need to understand six-person team. “We believe and have this, and to have consistency when invested in training and exchanges in they want to approach this medium,” the Golin network and we could offer pointed out Tomoiaga. that know-how to our clients through Read the full article at www.businessintegrated solutions, from the management of network pages to blogger and review.eu vlogger management, apps and online media. Also, this is the third year we editorial@business-review.ro

CoVeR StoRY-pR 27

www.business-review.eu Business Review | April 2015

28 FeAture

Major moves reshape consolidating online travel market Almost simultaneously, the biggest players on the local online travel market, Vola.ro and Paravion.ro, announced the transactions of the year. Vola.ro sold a significant stake to 3TS, one of the biggest investment funds in Romania. And Paravion.ro bought Bavul.com, a major online travel agency in Turkey.

Daniel Truica, founder and managing partner of Vola.ro

∫ FulvIA MeIrOsu These were somewhat predictable moves on a very fragmented online travel market, where there are too many players, say pundits. In fact, some commentators argue that the local market is too small – or put the other way around, the global one is too big, as an online travel agency is accessible to any traveler in any market. A would-be tourist can reserve, from Bucharest, a table at the most exclusive French restaurant, through LaFourchette.com (owned byTripAdvisor); read up on the best hotel for couples only in the Caribbean on TripAdvisor and make a reservation on Booking.com; and buy a plane ticket from Vola.ro or directly from Alitalia.com.

However, a local traveler could not book a domestic flight in Turkey on Bavul.com (Bavul is the Turkish word for “suitcase”) because the website is in Turkish only: it has been and will continue to be aimed at the Turkish market, which is a really large one. Remus Visan, the managing director of Paravion.ro, says this is exactly why the firm, after a year of negotiations, bought the Turkish travel player. Paravion.ro initially tried to enter the Turkish market – the largest in the region – with its own brand, but was not successful. It then decided to go with the well known local

brand Bavul.com, a business with 300,000 users.

Bavul.com was set up in 2011 by Turkcell, the leader of the telecom market in Turkey, with more than 35 million customers, as a bonus service. But because the travel business is completely different from telecom business, and the profit margin is very small, Turkcell decided to sell. Word reached the Spanish investment fund GED Cap-

almost weekly to Istanbul to make sure things are moving in the right direction.

The aim is to lift Bavul.com into the top ten Turkish travel players (for which the CEO is counting on the domestic flights segment), to serve the Turkish expat communities and to become a gateway to the tempting Middle East market.

These are Visan’s long-term plans.

The short-term ones include a EUR 40

“I think that migration towards online sales will be visible on more and more segments of the travel industry. Obviously, plane tickets are more standardized and easier to sell online, but there won’t be many segments immune to clients’ desire to research and book online. And because of that trend, the local travel market will develop solutions destined to satisfy customer demand," Daniel Truica, founder and managing partner Vola.ro. ital, active in Turkey and also in Romania as the owner of Paravion.ro. What the managers of Paravion.ro were hoping for at the beginning was a merger with Bavul.com, but it was ultimately an acquisition, says Visan, who travels

million turnover in 2015 and nurturing baby no. 1, Paravion.ro. Considering that pundits say the next big thing on the local travel market is selling package holidays, and that to let customers build their own package – as Expedia

does – is pretty expensive, Paravion.ro’s target for this year is to become the biggest online retailer of charter holidays. “Probably few people remember what we did ten years ago: we took a slice from the offline plane tickets market, and the slice got bigger and bigger.

Now we will do the same with the package holiday market,” said Visan.

Paravion.ro started its regional expansion in 2013, and now has a significant presence in Bulgaria and Cyprus.

But these markets could not compare with Turkey’s dimension and huge potential, says the CEO. “We are interested first in improving our platform and in diversifying the range of products available on Bavul.com, which has until now focused on selling plane tickets. There is a clear synergy, taking into account the investments recently made by Paravion.ro in the area of package holidays, which will help Bavul.com diversify its offer in Turkey. We also see an interesting collaboration in the mobile area: Bavul.com,with Turkcell, was a pioneer in developing a mobile application, used by 300,000 clients,” said Visan.

“In 2014, the regional expansion of Paravion.ro generated a 60 percent increase in the business. After the acquisition of Bavul.com, Paravion.ro expects revenues of EUR 40 million for the entire 2015, a faster growth rhythm than in 2014. Besides, the Bavul.com brand could help us to enter on other

www.business-review.ro Business Review | April 2015

FeAture 29

Tripsta and Airtickets, a regional merger l Also this spring, Tripsta and Airtickets, both online travel players, an-

nounced their merger. The move marks a significant change in the hierarchy of the main European players: the company that emerged is the largest online travel agency in South-East Europe, and one of top five players in Europe. l The company is the biggest online travel agency in Greece and will generate sales of EUR 500 million. In March, the two firms had a combined traffic of 4.75 million visits to their websites, sold more than 200,000 plane tickets and registered more than 160,000 reservations. l The two companies have offices in Greece, Russia, Romania, Poland, Turkey and Brazil. Αirtickets started its activity in 2000 and was the first Greek travel company to offer online reservations.

Remus Visan, the managing director of Paravion.ro

neighboring markets very soon and the Paravion.ro brand will be used in Central, Eastern and Western Europe,” said Juan Antonio Carrasco Ferrer, CEO of Paravion.

Since 2010, Paravion.ro has belonged to GED Capital investment fund.

That year Paravion.ro became part of

the Happy Tour travel family and last year regained its liberty. Founded in 1996, GED is one of the oldest private investors active in Romania. Since the beginning, it has raised funds of EUR 500 million, and at the moment the company administrates four funds in Eastern Europe and the Iberian Penin-

Global mergers l The last two years have seen a wave of acquisitions on the US market,

with Expedia and Priceline becoming the biggest players. The consolidation of the market happened at a faster pace than before and the trend has spread to Western Europe. l According to Euromonitor International, the value of the global travel industry last year was USD 1.3 trillion. Expedia’s share is 6.3 percent, compared to Priceline’s 4.9 percent.

expedia acquisitions 2015 Orbitz Travelocity 2014 Wotif Auto Escape 2013 Trivago

USD 1.6 billion USD 280 million USD 658 million USD 85 million USD 632 million (62 percent stake)

Priceline acquisitions 2014 OpenTable Buuteeq Hotel Ninjas Qlika

USD 2.6 billion undisclosed undisclosed USD 3 million

2013 Kayak

USD 1.8 billion

tripAdvisor acquisitions 2014 Viator USD 192 million VacationHomeRentals undisclosed Tripbod undisclosed LaFourchette undisclosed My Table undisclosed Restopolis undisclosed Lens USD 11 million 2013 TinyPost Jetsetter CruiseWise Niumba Gate Guru Oyster

Source: skift.com

undisclosed undisclosed undisclosed undisclosed undisclosed undisclosed

sula, with a portfolio of 23 companies.

Commentators say that local online travel players cannot reach regional or global size without the help of the investment funds. 3TS, a private equity and venture capital fund, invested EUR 5 million this spring in Interactive Travel Holdings (ITH), the owner of Vola.ro, the biggest online travel agency in Romania, and its sister from Poland, Fru.pl. Pundits had expected the move, as Vola.ro had been looking for an investment fund partner for a couple of years.

“We plan to use the investment to develop the tech platform and consolidate our position on the market, by accelerating the marketing investments and analyzing opportunities on other markets,” said Daniel Truica, founder and managing partner of Vola.ro, adding that the main reason for looking for an investment fund was the pipeline of projects the company has and its desire to develop them as fast as possible. He estimates a turnover of EUR 40 million for 2015, similar to Paravion.ro, which would mark substantial growth, from the EUR 23 million turnover in 2014.

“This investment will help us develop our online platform and strengthen our position on the market, but more importantly, it gives us the possibility to look beyond Romania and Poland towards international expansion,” said Michał Wrodarczyk, executive director of Interactive Travel Holdings.

3TS representatives say that due to a very fragmented online travel market in Central and Eastern Europe, ITH will be able to play a major role in the unavoidable consolidation of the market with the help of this investment. Over time 3TS Capital Partners has invested in many Romanian startups, all related to the tech and online area, including Avangate, LogMeln, Internet Corp (the company that owns Wall-street.ro) and recently Universal Online Promotion (the company that owns elefant.ro, one of the largest online retailers).

Founded in 2007 by Truica and two Polish partners, Vola.ro focused at the

beginning only on selling online plane tickets. In time the agency diversified its range, adding all related services: hotels, insurance, rent-a-car, corporate services, city breaks and package holidays.

From a strategic point of view, says Truica, there is no difference between city breaks and package holidays. There are opportunities across the whole range of travel packages and Vola.ro’s target is to build products dedicated both to city break and charter holiday customers. Until now, Vola.ro has focused more on city breaks, as they were a natural follow-up to the products the company already had in its portfolio (flights, hotels, insurance). But in the near future the company is planning to bring to the spotlight on package holidays and to improve the product. “We think we can become a good distribution channel for Romanian tour operators, due to our strong points in the travel retail sector,” said Truica.

Speaking of city breaks, in March, Rome, Istanbul, Malta, London and Venice were among the most sought after destinations through Vola.ro. At Easter, Romanian holidaymakers were split between religious destinations, such as Rome, Athens and Jerusalem, and fun destinations, such as Amsterdam and Dubai. The average price of a city break for such destinations was EUR 470, while the starting price for a Vola.ro city break is EUR 179.

“I think that migration towards online sales will be visible on more and more segments of the travel industry.

Obviously, plane tickets are more standardized and easier to sell online, but there won’t be many segments immune to clients’ desire to research and book online. And because of that trend, the local travel market will develop solutions destined to satisfy customer demand,” said Truica, adding that he is already seeing shy attempts at innovative products. He thinks the regional market will further consolidate, following the Western European trend. editorial@business-review.ro

www.business-review.eu Business Review | April 2015

30 INTERVIEW

A modern four-star hotel reveals a piece of Bucharest history Georgeta Grecu, manager of Cismigiu Hotel, tells Business Review about the colorful history of the renovated four-star property, its place on today’s local hospitality market and its performance since its December 2012 opening.

Boulevard and the inauguration of Palace Hotel back in 1912. This story sounds good and it sells! Most of our foreign customers ask the meaning of “Cismigiu” and are surprised to hear its connection with “fountain” (in Romanian, cismea) and the history of the first public fountain in Bucharest.

Our Romanian guests know more about the hotel and its history and make connection between it and the Gambrinus brewery. Many of them come just out of curiosity to see how the building has been transformed since its renovation. The proper combination of the old-style façade and modern interior with industrial stairs, modern paintings and designer lamps surprise visitors and make them stay at our hotel for longer.

∫ ANdA SEBESI When was the hotel re-opened and how much did Hercesa invest in its renovation?

Cismigiu Hotel is located on the wellknown Queen Elisabeth Boulevard, within walking distance of Bucharest’s historical and commercial center. The building has its original façade from 1912, while the interiors were built from the ground up and benefit from the newest, most modern technologies and design, giving back to the city of Bucharest the same emblematic building it always was, now with a mix of functions: offices, commercial spaces and a boutique hotel. It was re-opened to the public in December 2012 when it also celebrated 100 years since its launch.

The investment made by Spanish company Hercesa in its renovation was EUR 15 million.

How is the hotel positioned on the market now?

At present Cismigiu Hotel is positioned on the market as a four-star hotel, offering its customers 60 apartments of areas between 38 and 55 sqm and other facilities such as a gym, seven meeting rooms for workshops and conferences and an amphitheater on the ground floor, within Cervantes Institute, with 120 seats. On the ground floor there is also Gambrinus Restaurant, well known on the local market for its associations with the great Romanian dramatist, Ion Luca Caragiale.

How has the business evolved since its opening?

Initially when we opened the hotel we intended to exceed rapidly an occupancy rate of 50 percent. We did it in less than a year and a half. Now the Cismigiu Hotel posts above the average occupancy rate in Bucharest and generates a turnover of over EUR 1 million. The growth was more pronounced in the first two years since opening, at about 25-30 percent each year. In 2015, three years since its opening, we intend to increase turnover by as much as 5 percent on 2014 and we will focus on maintaining the high quality that we give our guests.

Can you give a short description of the nights sold. The reason is that trainers like to stay in the hotel where their hotel’s typical customer?

Although Bucharest is still a business conference is taking place. destination, which we can see especially during spring and fall, leisure In your opinion, what differentiates the tourism has begun to grow each year. hotel from other players that are active The development and promotion of on the hospitality market in the Old Town and the city itself gen- Bucharest? erates an increase of the number of The quality of the hospitality expericity-break tourists who could then be- ence afforded by our generous apartcome interested in Romanian tourism. ments, modern facilities and the Because Cismigiu Hotel is close to the qualified personnel that work in our Old Town, it is popular with both hotel are some of Cismigiu Hotel’s businesspeople and tourists. The competitive advantages. Its façade business segment, including the “ex- with balconies and the view over tended stay” sector which has posted Queen Elisabeth Boulevard and Paran accelerated increase this year – liament Palace are other features that makes up over 70 percent of our total make the difference. accommodation. There are also leisure customers – young families Cismigiu Hotel is one of the oldest symwith children who want to discover bols of Bucharest. How much does its new European destinations and want story “sell” to your customers? an apartment that allows children and In 1856, long before it was a hotel, the adults to stay in the same room. In site of the current Cismigiu Hotel was summer we have senior tourists that the house of Samesu Dumitrache and come mainly from Germany, Great “Bibica Rosetti”. At that time, the area Britain and the Nordic countries. between the National Military BuildThey want more comfort and are less ing and Cismigiu Garden was covered price sensitive. Last but not least, by large gardens with few houses. The conferences and workshops generate story begins with the construction of 8 to 10 percent of the monthly room the first buildings on Queen Elisabeth

How would you describe today’s hospitality market in Bucharest in terms of development and potential for growth?

The hospitality industry is in full expansion worldwide, posting an increase of 4 percent a year. Romania cannot lag behind and will follow this trend. Bucharest is becoming more and more a leisure destination for MICE (Meetings, Incentives, Conferences, and Exhibitions) that adds to the slow increase in business tourism.

This will generate new openings of hotels, restaurants and spas. It would be ideal if the necessary infrastructure developed in line with market demand. There is a huge need for large congress rooms and quicker transportation alternatives to the airport. anda.sebesi@business-review.ro

Cismigiu Hotel: Opening year: December 2012 Investment in renovation: EUR 15 million Number of rooms: 60 Estimated growth in 2015 turnover: up to 5 percent on 2014 Building style: The façade of the hotel is the original, dating back to 1912, while the interiors are modern

www.business-review.ro Business Review | April 2015

INTERVIEW 31

Cemacon: from the brink to nationwide number two

SUCCESS STORIES

Liviu Stoleru, general manager of Cemacon, tells Business Review the story behind the company’s current position on the Romania market and explains the turnaround strategy that led to it. ∫ ANdA SEBESI What is the story behind the Cemacon business?

Cemacon is probably one of the few success stories of a Romanian company in distress. Looking back, we are talking about a company founded in 1969, in Zalau, a state-owned company privatized in 1991. In 1996, the company was listed at the Bucharest Stock Exchange and in 1999 it became a 100 percent privately owned company.

As the construction market increased significantly every year until 2008, its position on the market was guaranteed by strong demand. Because the business had major growth potential, the management team at that time decided to apply for a EUR 26 million loan to build a new factory, with new technology and greater production capacity. The economic crisis followed and repayment of the debt became a major issue. In 2010 when joining the company, I found it in a rather difficult situation. Insolvency was pretty close.

My main concern was saving the business, even though we faced rough market conditions and, moreover, a stiff and hostile organization. For this to happen, a major restructuring was needed. There was a battle to get those responsible to understand – the union, workers, the old management and the investors. We then started what proved to be the most effective financial and operational business turnaround of a Romanian company. Today, Cemacon is a stable, reliable, high-performing, profitable and expanding business.

Cemacon: Field of activity: National producer of ceramic blocks Number of employees: over 150 2014 turnover: over EUR 13.5 million 2015 estimated turnover: 40 percent increase on 2014

Recently Cemacon was the winner of the Best Turnaround Strategy category at the Business Review Gala Awards. What did this strategy consist of?

When I arrived at Cemacon, five years ago, I found a dangerous situation that was threatening the entire business. I saw potential, and I came up with a turnaround strategy, implemented with the support of a visionary management team. The plan included two types of measures, operational and financial restructuring, and started in January 2011.

The operational turnaround involved changing the entire entrepreneurship pattern, bringing on board a brand new management team with vision, consisting of young but accomplished professionals, with great expertise. We had to cut some administrative and operating costs as well. The Zalau factory was closed and the entire production was moved to the Recea facility, where we now use the most modern and advanced automatic production line in South-Eastern Europe. We renegotiated the strategic supplier contracts and optimized the direct production costs by innovating in terms of distribution and technological implementation. A new portfolio, consisting of the most modern bricks on the Romanian market, was launched in 2013.

Cemacon was repositioned on the mar-

ket with a new identity and marketing strategy. The rebranding process was one of a kind on the construction market, while the competition was fighting for low prices and undertaking major cost cutting. The distribution network was expanded from ten distributors in three nearby counties to a national network consisting of more than 250 points in 30 counties.

The financial restructuring was necessary to find a solution to ease the debt repayment. But in order to initiate discussions with the bank we had to prove operational performance. After initiating the operational turnover, we were able to show the bank Cemacon’s new path. They understood the difficulties brought about by the crisis and saw that the company had applied emergency measures to save the business. Not only was the bank convinced, but investors began to be interested in Cemacon. In 2013, the KJK Investment Fund became a shareholder.

In 2014, Cemacon reached a new level of business; we strengthened the company and established a new foundation for growth and development. In a constricted market, we achieved spectacular growth, with a 31 percent increase in gross turnover and 43 percent increase in operating profit on 2013. In four years, Cemacon was transformed from a local player into the most innovative and competitive producer of ceramic blocks nationwide. From eighth place in the ranking, we climbed to third place; we increased turnover from EUR 5 million to EUR 14 million and market share from 6.7 percent to 17 percent.

Last month the financial restructuring came to an end, with the signing of new loan contracts with the financing bank. Cemacon now has a debt that can be sustained by core activity and is the second largest Romanian brick producer, after reopening the factory in Zalau, which increases our production capacity by 33 percent.

In your opinion, what are the main factors behind the company’s current position?

Apart from the efficient business strategies applied, there were other factors.

Cemacon’s product portfolio is unique

on the Romanian construction market.

Every product offers advantages to the developer, construction team or beneficiaries, who can save time and money thanks to Evoceramic bricks’ dimensions and characteristics. These were the main reasons that convinced clients to use our products.

Demand exceeded our production capacity. The Recea facility reached its maximum production capacity in 2014.

In March 2015 we reopened the Zalau factory in order to boost our production by 33 percent and satisfy the market’s high demand for Evoceramic products.

The improving economy also boosted the residential sector. In 2014, the market increased by 8 percent on 2013 and in 2015 we estimate a higher increase of 13-15 percent.

What are the main outcomes posted by Cemacon as the result of the implementation of its turnaround strategy?

In the last four years, the company’s turnover has posted a total increase of over 250 percent, and the company reported operational profit, at a high rate for this industry, of 19 percent in 2014.

While the masonry market is down by 40 percent on 2008, Cemacon’s production capacity has increased every year since 2008 and reached its maximum last year.

In 2014, Cemacon posted the biggest jump in the construction materials market, with a turnover of EUR 13.5 million, or 31 percent more than at the end of 2013. All our operational and financial results convinced the bank that Cemacon is not just a client, but a reliable partner.

What are the company’s plans?

It’s time for strategic investments to boost our results and reach our objectives. In 2015 we will invest about EUR 1 million to increase and optimize production. We will focus on reducing production costs and developing the Evoceramic range. With the Zalau facility operational, Cemacon becomes Transylvania’s main brick producer and the second largest at national level. anda.sebesi@business-review.ro

www.business-review.ro Business Review | April 2015

32 GREEN CORNER PARTNER CONTENT

digital education, a priority for Orange

Romania Green Building Council launches green playground project The Romania Green Building Council (RoGBC ) has launched an initiative to build the greenest playground in Bucharest in an effort to draw attention to the need to develop both sustainable and educational projects for children.

In recent years, Orange has assumed a significant social role, that of a digital coach for the company’s stakeholders in the digital era. We try to develop dedicated projects and tailored solutions for each category of user.

Our CSR strategy includes digital education for children, seniors and individuals with sensory disabilities.

One of the most relevant digital education projects for children is #SuperCoders – workshops to learn coding language.

SuperCoders took place in October 2014, an Orange Group initiative within EU CodeWeek, a European Commission project. Around 240 children from four countries – France, Poland, Romania and Spain – participated in the project, 40 of whom were from Bucharest. The 2015 #SuperCoders took place on the occasion of Safer Internet Day, an initiative at European level that aims to promote the safe and responsible use of the internet.

Four workshops took place simultaneously in Bucharest and Cluj-Napoca, which attracted over 100 children.

We chose this type of workshop because the internet is now a part of our lives, which digital technologies are changing and improving more quickly than ever.

At the same time, coding is one of the digital resources of the future and we wanted to make young people aware of its importance and the opportunities it offers.

In this context, we wanted to present to children both the coding component and the meaning of “Better Internet”, which, used responsibly and safely, can be an essential resource for documentation, information and communication for both classroom and free-time activities.

At SuperCoders workshops

children worked in pairs on a common theme, and under the guidance of their trainers they learned to use the Scratch platform – a funny and participatory tool meant to initiate them into the world of programming. With its help, they created their own animations in just a few hours, coming up with some interesting stories. Children from Bucharest and Cluj could also change ideas and projects through a live webcast.

Registration for SuperCoders was open to any child that met the age criteria, and selection was made in order of registration based on available places.

The objective of #SuperCoders was to provide an initiation into the mystery of programming, through which we intended to make children aware of the opportunity they have at hand and awaken their interest. The little ones gained experience, used their creativity and were delighted at the results.

Salvati Copiii Romania and Simplon Romania were our partners in the two runs of the project.

The next step in this direction was to get involved in the national program “Scoala Altfel. Sa stii mai multe sa fii mai bun!”: 25 interactive workshops in Bucharest between April 6 and 10 organized

by Orange.

Teachers could register a class of up to 30 students aged 10-13 years via e-mail to csr@orange.ro, with 25 available places available. Over two hours, specialized trainers taught students how to use technology responsibly and, depending on their age, outlined useful digital resources in the learning process and how they can use the internet safely.

∫ ANdA SEBESI The organization is setting up an “integrated design workshop” to discuss the project’s objectives and get the perspective of developers, materials and service suppliers, designers, architects and, most importantly, children of all ages since they are the beneficiaries.

The playground is intended to inform both adults and children of the concept of sustainability and the bioclimatic elements that are involved in creating a healthy, natural and durable environment.

“RoGBC commits to initiate and develop projects that will demonstrate and guarantee that the built environment will not only not endanger future generations but will also become an important source of education, safety, health, comfort, innovation and economic opportunities. Following this commitment, we have invited members of our community, important investors and green solution suppliers to join forces to design and develop the greenest educational playground in Bucharest. This project is an exemplary solution for both adults and children for how we can use nature to educate children. Several workshops will be held as well as consulting sessions with children of all ages,” said Steve Borncamp, CEO of the Romania Green Building Council.

The first confirmed partners for the project are real estate developer Alesonor, which will provide the land and design services, and Cabro Construct, which will perform part of the construction work. Eight children from the Pitiricky kindergarten in Bucharest aged between four and five took part in the first design session.

“We welcome the initiative of RoGBC and we are glad to support it. Our target is to design and build a playground that reflects our concern for sustainability and promotes bioclimatic design, including elements with a high educational component for the children who will use it. To achieve this we plan to use materials with a very low carbon print: materials and soil available on the site, reused and recycled materials. We also want the lighting for the playground to use renewable wind and solar energy,” said Leonidas Anastasopoulos, managing partner at Alesonor. The company is developing the Amber Gardens residential project in Bucharest which integrates bioclimatic design and meets passive house criteria.

RoGBC is a non-profit, non-political association whose purpose is to create the necessary market, education and legislative conditions to promote both sustainable and profitable high-performance constructions.

anda.sebesi@business-review.ro

www.business-review.ro Business Review | April 2015

Ursus Breweries presents local sustainability report For the first time, SABMiller subsidiary Ursus Breweries has put its sustainability report up for scrutiny at international standards. The document outlines how the brewer has tried to foster Romania’s economic, social and cultural development.

GREEN CORNER 33 PARTNER CONTENT

New digital technologies help blind and partially sighted people dReam (digital Resources – Easy to Access and Manage) – a project developed by the National Library of Romania with the support of the Orange Foundation in Romania Along with the development of new technologies and the digitalization of communication methods, new opportunities to make both places and information more accessible have appeared, including for people with sensory deficiencies.

turala project for the third year in a row. “Beraria Culturala is not just a local phenomenon. It has been Ursus Breweries recently released its known in the national cultural arena sustainability report, which for the because for two years now it has profirst time in Romania was developed vided a debate and analysis platform and validated according to the Global for culture, civil and social issues. We Reporting Initiative – GRI G4. It sets are proud that this phenomenon is out the progress made in the brewer’s being supported by Ursus Breweries contribution to the development of for the third year and we hope that society, focusing on the communities the generated debate will bring to where it is present: Cluj-Napoca, public attention the importance of Timisoara, Brasov, Buzau and such initiatives,” said Ion Novacescu, Bucharest. president of Fundatia Armonia and “The sustainability report is part of project manager at Beraria Culturala. the Ursus Breweries strategy to inteThe company will also continue grate sustainability into its usual prac- the partnership launched two years tices and an example of ethical and ago to support Cluj-Napoca’s candinon-financial transparency,” said dacy for the title of European Cultural Robert Uzuna, corporate affairs direc- Capital in 2021. “Culture is one of the tor at Ursus Breweries. most powerful arguments for the city The report includes details of op- of Cluj-Napoca in its efforts to beerations between 2013 and 2014 such come one of the biggest urban attracas: 28,000 jobs generated directly and tions in Europe. We think that this indirectly in the local economy; 70 city is a perfect solution for European percent of the barley used by the Cultural Capital in 2021,” said Florin brewer is bought on the local market; Morosanu, executive director of the 90.7 percent of generated waste is re- Cluj-Napoca – European Cultural Capcycled; 2,100 hours of professional ital Association.

Ursus Breweries, the Romanian training were provided to employees; 47.0 percent of the management po- subsidiary of SABMiller, is one of the sitions at the company are held by largest beer producers in the country. women; and 8.26 percent of the total SABMiller has been present locally energy directly used by Ursus Brew- since 1996. eries is renewable.

Ursus Breweries also announced that it would support the Beraria Cul- anda.sebesi@business-review.ro

∫ ANdA SEBESI

Through the “DReam” project developed with the support of the Orange Foundation, the National Library used the latest technologies and founded a center for information and documentation that ensures access to information for people with visual disabilities.

Through the center, blind and partially sighted individuals can explore documents from the National Library collections.

In addition, the “DReam” project has helped increase individuals with visual disabilities’ chances of accessing education and a favorable working environment; provide professional training for people with other disabilities and increase access to information on how young people with sight deficiencies can pursue higher education.

The newly implemented technologies allow blind and partially sighted individuals to get information (scanned or existing electronic documents, touch maps, audio and DAISY books, information available on the Internet – newspapers, magazines, public information) through five work stations equipped with some of the most recent assistive technological equipment. The equipment found at the National Library includes: l A screen reader: software that reads the information from the desktop aloud in multiple languages, including Romanian; l Software for optical recognition of characters; l Scanners with both audio

facilities and a system of enhanced document display; l Reading equipment – a tool capable of making photos and reading a printed document in human voice; l A device that recognizes and reads audio and touch maps, diagrams, tables, etc. l Readers for DAISY books.

The results of the project include creating an accessible web page for individuals that use screen readers, developing a touch map for the library building, and amassing an impressive collection of audio and electronic books (about 4,000 digital e-books and 42 electronic encyclopedias available on www.bibnat.ro) and DAISY books (about 150 titles).

In addition, the National Library offers specialized assistance to other libraries that want to make their collections and services available to people with disabilities, to mass educational institutions that have already integrated or intend to integrate this cohort of users into their spaces, to potential employers and all blind or partially sighted people that ask for assistance.

Over 200 beneficiaries with sight deficiencies, including a significant number of students, have been included in the project.

www.business-review.eu Business Review | April 2015

34 TRAVel

A glimpse of Jordan One of the safest places in the Middle East nowadays is the Hashemite Kingdom of Jordan, where the new wave of luxury hotels and spas emerging in Amman, Petra, Aqaba and the Dead Sea awaits travelers who want to combine ancient times with modern facilities. BR took a trip there.

All photos: Oana Vasiliu

On our way to Madaba, the light turned from orange to pinks, reds and purples, while the silent Dead Sea offered a spectacular view of its shores

∫ OAnA VASiliu From the quiet desert of Wadi Rum to the noisy center of Amman, from the imposing ruins of the Nabataeans civilizations to the timeless grandeur of the Dead Sea, Jordan is considered an exotic destination offering mysterious sights, with good-value accommodation, tasty cuisine and activities that can take visitors out of their comfort zone.

Getting there and around Most airlines fly into the Amman Queen Alia International Airport, 35 km from the capital. For solo travelers, the visa costs JOD 40 (about EUR 53), but groups of at least four with a booking via a Jordanian tourism office get the visa free of charge. The fee cannot be paid by credit card, and the airport exchange rates are very bad, so it’s better to withdraw cash from one of the ATMs. If you arrive at the Aqaba International Airport, no visa is needed, as Aqaba has a free-zone status.

From both airports, you can hire a car from one of the international rental

companies if you have a credit card, or negotiate for a local car. Bear in mind that for tourists, car number plates are green, while for the locals they are white. All roads are supervised by police who stop cars at random. If you are a tourist driving a local car, the fine is JOD 30. Most of the cities are built on hills, so the roads undulate – a real pleasure for driving or a severe headache, depending on your tastes. We had an automatic car which was often a real blessing. Gas costs between JOD 0.60 and 0.80 per liter, depending on where you stop to refill.

Amman and the surrounding cities are relatively small, and most places of interest are well-known. Information is in both Arabic and English, so it is easy to find roads and landmarks.

We used the reliable HERE app as an offline map, developed by Nokia and available for both Android and Apple devices.

From north to south, there are three main roads, only one of which is a highway. We took it from Amman to Aqaba early in the morning and it was quite busy. Returning, we took the King’s

Highway, a beautiful snaking route with great scenic views. Descending the hills to reach the Dead Sea at sunset, the landscape was breathtaking, as the intense red of the rocks gradually softened.

Aqaba, Jordan’s Red Sea resort If you have enjoyed the Red Sea’s other shores, then you know what to expect: clear waters where you can scuba dive, snorkel, swim or go on a boat trip. Public beaches are very crowded and women are expected to remain covered, but in the southern part, near the border with Saudi Arabia, there are some private beaches for foreign tourists, where the entrance fee is JOD 15. Some threeand four-star hotels in Aqaba offer free entrance or a cheaper ticket, so ask at the reception. If you book a hotel through www.booking.com as we did, read up in advance what other tourists have to say about the facilities: the photos and the reality are not always the same. It’s worth trying the restaurants used by the locals: hummus is a must, of course, as is fresh fish.

The stupendous cliffs of Wadi Rum T.E. Lawrence described the Wadi Rum desert as “vast, echoing and God-like”.

He nailed it. According to the national tourism office, Wadi Rum is “A maze of monolithic rockscapes rise up from the desert floor to heights of 1,750 m creating a natural challenge for serious mountaineers. Hikers can enjoy the tranquility of the boundless empty spaces and explore the canyons and water holes to discover 4,000-year-old rock drawings and the many other spectacular treasures this vast wilderness holds in store.” It offered me a silence that I had never heard before, the finest sand I have ever touched and probably the most impressive full moon, not to mention the sunset and the sunrise, when the rocks stage a colorful show that the camera lens can’t replicate. The internet is full of adverts for adventures in the desert, from jeep tours to overnight stays in a Bedouin camp or a cave. Prices start from JOD 20, but everything is negotiable. Keep in mind that the desert is off-road, so you need a strong stomach to get around.

www.business-review.eu Business Review | April 2015

TRAVel 35

The crystal clear waters of the Red Sea invite you to sunbathe

A spectacular view from Amman's Amphitheater

Petra, the rose-red city

hills of Jerusalem to the east. Over several years, the Jordanian east coast of the Dead Sea has evolved into a major hub of health & wellness tourism in the region, with hotels offering spa and fitness facilities that take advantage of the natural benefits of the water. Float in one of the five-star hotels here, where entrance costs from JOD 50 with spa treatment included, or go for a cheaper version, such as Amman Touristic Beach, for JOD 20. Also, if you can stand the salt on your body, a free way to float at the earth’s lowest point is to park near the road and enjoy the sea for yourself, as we did. Unfortunately, we didn’t see salt formations like the ones that appear when you Google the Dead Sea, but we were able to bring home some salt that we extracted directly from the sea.

The giant red mountains hide what is without doubt Jordan's most valuable treasure, the life of the Nabataeans civilizations, a hard-working Arab people who settled in Petra more than 2,000 years ago, making it a hub for the silk, spice and other trade routes that linked China, India and southern Arabia with Egypt, Syria, Greece and Rome. The main entrance to the city is through the Siq, a narrow gorge over 1 km in length, flanked on either side by soaring, 80 m high cliffs. At the end of it, you will come to Al-Khazneh, meaning The Treasury. From this point, every rock is shaped as part of the city: it could be a tomb, a temple, a monastery or a house, for the poorest to the richest Nabataeans.

Entrance to the site costs JOD 50 for one day, JOD 55 for two days and JOD 60

The quiet desert of Wadi Rum

for three days. The main landmarks can be seen in about half day, but for those passionate about history and architecture, the three-day ticket is preferable.

Locals sell different souvenirs, from necklaces to bracelets and magnets, and keen hagglers can secure good bargains.

The food and drink inside is quite expensive, so bring your own if you’re on a budget. The wonders of Petra can be seen by foot, camel, horse, donkey or carriage. The animals do not look very happy and owners tend to force them to sit down. You can also book a tour guide – a certified or local one.

Floating at the lowest point on earth From the Jordanian shore, the lowest point on the face of the earth, the Dead Sea offers an amazing view, flanked by mountains to the west and the rolling

Amman and its surroundings Amman is clearly a city of contrasts – old and new is blended over the seven hills of the capital, which is ideally situated between the desert and the fertile Jordan Valley. Modern times have reached the city and both commercial and contemporary buildings can be easily spotted. The downtown area showcases the traditional town, where souks (bazaars) still operate and shoppers and traders haggle hard. Most Amman guides encourage tourists to taste falafel at Hashem, a small tavern nestling between two buildings, where we ate Jordanian appetizers for only JOD 4.5; fresh fish at Sarah, where we had the best grilled shrimps I have ever eaten and also two types of grilled fresh fish for JOD 25 and snacks at Wild Jordan, which boasts wonderful city views over the Citadel and where you can find more information about the local wildlife and outdoor activities.

Besides the Citadel and the Roman amphitheater, Amman does not have many touristic sites, so half a day is sufficient to enjoy the city. Nearby is Jerash, called also the "Pompeii of the East," a

The entrance to Petra

ruined Greco-Roman city which still preserves places of worship and other buildings from the Hellenistic, Roman, Byzantine and early Muslim periods. In Madaba, also near Amman, you can find a large Byzantine-era mosaic map of the Holy Land and local artisans making mosaics and carpets, which can be bought from the Mosaic Souk at the entrance of the church where the map is on show. For JOD 12 you can see the Baptism Site in the Jordan River, which is also pretty close to Amman.

Sightseeing from Mount Nebo is wonderful, in part due to its religious significance: the spot is mentioned in the Bible as the place where Moses was granted a view of the Promised Land.

The view affords a panorama of the Holy Land, the valley of the River Jordan, Jericho and Jerusalem on a sunny day. editorial@business-review.ro

www.business-review.eu Business Review | April 2015

36 inTeRVieW

Stable business: jockeying for position in the horse field Equestria Club was set up in 2010 by Ozana Moraru, who with husband Cristian Moraru, both ophthalmologists, owns the Oculus eye clinic. She told BR how she ended up in the saddle, what fences the local horse business still has to clear and who are the runners and riders in her client base. quarterly de-worming and a bi-annual vaccination. The costs can reach EUR 700-800, including training.

∫ TATiAnA lAzAR

Why did you open a riding club? What is the story behind it?

I started 15 years ago, by taking some riding lessons at a club near Bucharest, but when I did not make any progress, I realized I needed to get my own horse to help me achieve this goal. I was not satisfied with the riding clubs that provided training around Bucharest or with the welfare of the horses. I bought two more horses, then another two, more expensive ones, which I gave to a rider and professional coach to participate in competitions. Since I wanted to obtain good results in serious competitions, and there was nowhere that I could access the requisite care for the ani-

is there a local horse market?

Yes, we can talk about a local market in Romania, covering especially the leisure horse class and mid-level performance horses, but also a market for school horses, those trained especially for riding lessons.

Horse buyers are either people who appreciate and want to become owners of sport horses, who hire a rider or coach to train them, or people who simply enjoy riding (or their children do), who realize that progress will be more visible and consistent if they have their own horse. Another category of buyers are professionals in the field: the professional horseriders who want to win contests with these horses and then sell them, or owners of equestrian facilities that offer riding lessons and need socalled “school” horses.

Courtesy of Equestria Club

is setting up a riding club a profitable business?

Unfortunately, at present in Romania it is not profitable to invest in riding for two basic reasons: firstly, it is not a familiar sport to Romanians and is not popular enough here – something that will not change anytime soon because of the lack of tradition in this area. And secondly, because we don’t have any national strategy in this regard – perhaps it is too much to ask, but at least some support from the sports authorities, for example, should be provided for this kind of sport.

Secondly, we do not have infrastructure in all the areas that could make riding a successful sport: we don’t have coaches, we are missing a well structured riding school that can teach people from beginners to champions; we lack skilled caregivers, as there are very few veterinarians, so if you decide to invest in expensive and potentially winning horses, their value may decrease, not increase, because you can’t get good results in national and international competitions.

My husband and I have invested a large sum in the stables – approximately EUR 5 million – and subsequently, we have made quite a serious investment in competition horses.

Other investments followed in school horses, and training accessories for the horses and contests: sets of professional obstacles, an electronic scoreboard and computerized starters, a mobile speaker for horses in competition, tents and other amenities.

mals, I decided to set up my own club, with the highest standards possible. I searched in Germany and France for construction companies specialized in equestrianism and the one I chose did both the design and construction of much of Equestria Club as it is today. Later I bought school horses, I opened a riding school, and I also acquired other competition horses, which we made available to club competitions. Shortly afterwards I started organizing riding competitions at the club.

Has horse riding caught on among Romanians? Do you think riding a horse has become a popular way to participate in sport?

Yes, the number of visitors has increased, both adults and children.

Some come only from a desire to spend their spare time outdoors, in a

quiet, relaxing, civilized spot. Some come for a few weeks or months and then give up. Others not only persist, but make good progress or even buy their own horse.

What are the monthly boarding costs for a horse?

Caring for a competitive horse or leisure horse involves proper nutrition – of sufficient quantity and good quality. Horses are very sensitive to the type of food they’re given (abroad, there are even sports horse nutritionists). Also, they need a good microclimate: clean rooms in airy stalls, special ventilation with certain volumes of air and a continuous and sufficient supply of drinking water. They also need structured sports training and communication activities which make them feel happy. In addition, there are monthly saddled activities,

What facilities does your riding club have?

A lesson with an instructor at the horse-riding club costs between RON 40 and 120, depending on duration (30, 45 or 60 minutes) and the student's level of experience. Besides riding lessons, Equestria offers a meeting space and infrastructure for workshops and professional meetings, accommodation, a cafe-bar and restaurant on demand for various activities.

Salon du Chaval Bucharest reaches fourth run The first phase of Equestrian Salon 2015 – Salon du Cheval Bucharest, now on its fourth run, will be held in Romania over April 24-26, at the Equestria Riding Facility and Stables, in Tancabesti, Snagov village (DN1). Organized by the Equestria Riding Club, the event aims to bring the model of the Salon du Cheval Paris to Romania.

The program includes high-level horse presentations, exhibition stands and a range of equestrian shows: parades, dressage to music, vaulting demonstrations, trotting and galloping demonstrations, chariot contests, horse stunts, horse acrobatic shows and many other surprises. editorial@business-review.ro

www.business-review.eu Business Review | April 2015

FilM ReVieW

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Going Away Street food (un beau dimanche) comes to the

office at Stradale Not going swimmingly: Louise Bourgoin plays the struggling mother of Mathias Brezot

This is partly owing to the deftly understated performances of the two leads, Rochefort and Bourgoin. Pain, Director: Nicole Garcia regret, awkwardness, fear and sorrow Starring: Louise Bourgoin, Pierre are conveyed subtly, hinting at rather Rochefort, Cambiere Dominique Sanda, than playing up the characters’ dysDeborah Francois functional back stories. The camera On at: Grand Cinema Digiplex, Cinemate- often lingers on their near-inscrutable ca Union faces, leaving the viewer to surmise the inner turmoil.

Director Nicole Garcia avoids mak“The English talk about the weather; ing trite comparisons and judgments: the French talk about their lives,” Baptiste’s wealthy family are largely complains one character in Going depicted as aloof and materialistic, Away, after a bad-tempered family ex- but working-class Sandra is not idechange over lunch. Well, of course we alized as a salt-of-the-earth, more do: weather chitchat is nice, easy and “real” opposite. inoffensive, while the messy business Although it is made clear that the of lives is much more dangerous con- main couple come from different versational territory. sides of the tracks, Going Away isn’t Messy lives are the focus here – if about relationships that cross the this drifting, atmospheric French film class divide. It’s hard to say what it is can be said to have anything as honed actually about, so distant does Garcia as a focus. The chief drifter is Baptiste remain from her characters. The plot (Pierre Rochefort), an itinerant supply is also slight, with style, atmosphere teacher who spends short stints in and snatched moments taking preceschools before moving on. Despite be- dence over drive and narrative thrust. ing well liked by fellow staff and What holds the viewer, then, is the pupils, he’s resistant to taking a per- strength of the acting, the director’s manent job, for reasons that a pro- eye for human failings – Baptiste’s rellogue suggests may have to do with a atives and Mathias’s father and his troubled background. new partner come off as particularly When the parents of Mathias unlikeable – and the settings against (Mathias Brezot), one of his pupils, fail which events are played out. The to collect their son from school, Bap- beachside café where Sandra works tiste abandons his usual reticence and as a waitress has a simple beauty that gets involved with the boy’s family. somehow suggests the sadness of life Mother Sandra’s troubles (Louise – perhaps because of the implicit conBourgoin) are of a different kind from trast with the ugliness of human flaws Baptiste’s own – she’s trying to avoid – while Baptiste’s family home is also a couple of heavies after a business poignantly evocative for reasons that deal went sour, leaving her in debt – are hard to define. but mother, son and teacher slowly These striking aesthetics combegin to bond. There are periods of bined with the attractiveness of the tension in the movie – Sandra’s en- two leads (few supply teachers were counters with the thugs and a few ever as hot as Baptiste) sometimes outbreaks of moderate violence – but give Going Away the feel of a downthe general idea is lost souls hazily beat, cerebral pop video – very imcoming together and trying to heal in pressionistic and very French. impressionistic scenes that seem to debbie.stowe@business-review.ro keep back as much as they reveal.

∫ DeBBie STOWe

∫ DeBBie STOWe A EUR 200,000 Bucharest restaurant is bringing the concepts of street food and live cooking to office workers. Local celebrity cook Chef Foa is behind the new eatery Stradale, which opened at the end of March in Bucharest Business Park, just off the main road to Otopeni airport.

The 600 sqm venue, situated on the ground floor of the complex, required an investment of over EUR 200,000. CA Immo was responsible for the fit out and equipment. With 180 seats, the restaurant can accommodate up to 600 lunchtime covers.

Stradale will have a robata grill – a barbecue style device that is commonly used in Japanese restaurants – and a tandoori oven, which will host live cooking demonstrations.

The large space has a bright, open aesthetic and is fully nonsmoking.

It caters mainly to lunching local office workers, but also serves breakfasts, coffee and cocoa. The premium blend coffee is served under the Guido label, a specialty shop with its own roaster and coffee school. Stradale offers an express

takeaway service and will also host after hours events.

“Meals should be a time to relax and not just to satisfy basic needs.

At Stradale, we want our customers to relax. We have therefore invested heavily in creating ambiance and design, in addition to the high-quality and tasty food,” said Chef Foa, executive chef at Flavours Food Design.

He added that Flavours had switched its focus from leisure time to the time spent at the office, where many people work without access to satisfying lunch options.

The chef said that the restaurant concept reflected the recent rise in the popularity of street food.

Flavours Food Design works in three interconnected areas of business: event catering, restaurants (Biutiful, Biutiful By the Lake, Le Bistro, Fratelli Espresso Bar, Fratelli Beach & Club) and food courts (Willbrook Platinum Business and Convention Center). Founded in 2002, the company says its events cover aspects from food and services to style and design.

The restaurant began trading on 31 March. debbie.stowe@business-review.ro

www.business-review.eu Business Review | April 2015

38 CIty

Calendar ∫ tAtIANA LAZAR BRD Nastase tiriac trophy Until April 26, BNR Arenas The Anniversary Edition marking 20 years of the Bucharest tournament brings together big names from the ATP circuit: Gilles Simon, Ivo Karlovic, Guillermo Garcia-Lopez, Lukas Rosol and Andreas Seppi are among the seeded players. The top seed is Simon (14 ATP), triple champion in Bucharest in 2007, 2008 and 2012. Karlovic (24 ATP) will attend the tournament for the first time as the number two seed.

Horia Tecau, the BRD Nastase Tiriac Trophy doubles champion in 2012, 2013 and 2014, will defend his title with Jean-Julien Rojer. The duo are the number two doubles team in the world, with a title win in Rotterdam and a final in Sydney this year. Florin Mergea will attend the tournament with Dominic Inglot, with whom he has won two historic matches against the Bryan brothers.

Mogosoaia ClasicFest Until May 31, Mogosoaia Palace For several years now, culture fans have been making an annual pilgrimage to one of the most beautiful landmarks around Bucharest, Mogosoaia Palace, for a top-quality classical music festival that attracts artists from all over the world. This year’s event runs from April 19 to May 31. The opening event, at 12.00 on April 19, will present the Giocoso Quartet, performing works

by Joseph Haydn, Krzysztof Penderecki and Hugo Wolf. The other events will take place on April 26, and May 2-3, 9-10, 16-17, 24 and 31.

Henri Matisse exhibition Until June 7, Noblesse Palace

can be visited based on a telephone appointment (0749.232.311) and tickets cost RON 45 (EUR 10).

Bucharest International Film Festival April 20-26, Cinema Studio and Cinema Elvira Popescu The 11th Bucharest International Film Festival will screen one of the hottest movies of the moment, the Iranian film Taxi, which won the Golden Bear and the FIPRESCI Award at the 2015 Berlinale. Joshua Oppenheimer’s documentary The Look of Silence, Claudiu Mitcu’s documentary The Network and Thomas Vinterberg’s Far from the Madding Crowd will also be shown, as will Pulp – A Film about Life, Death and Supermarkets, a movie about the iconic Britpop band.

Armenian music with Grigore Lese and Artur Șahnazarian April 23, 19.00, Radio Hall The Radio Hall will host a unique encounter between the traditional music of two cultures – Romanian and Armenian – courtesy of two highly acclaimed performers, Grigore Lese and Artur Sahnazarian. The evening will be dedicated to the great Armenian composer, musician, folklorist and founder of the Armenian National School of Composition, Komitas (18691935), who on April 24, 1915, along with other Armenian intellectuals in Constantinople, was arrested and deported by Turkish officials.

JAZZAJ April 25, 20.00, ArCub Elena Mindru Finnection opens the new Jazzaj edition, showcasing an impressive mix of jazz sounds and traditional Romanian music. Mindru will present her latest project, Evening in Romania, where jazz lovers can hear songs by her and pianist Tuomas J. Turunen, a composition by Marius Popp and master of jazz, Johnny Raducanu. Tickets can be bought online at www.bilete.arcub.ro with prices from RON 25 to RON 45.

Cinepolitica International Film Festival April 26-30, Cinema Studio and Cinema Elvira Popescu The first Henri Matisse exhibition in Romania is open to visitors between 10 am and 7 pm until June 7 at the Bucharest Noblesse Palace. Graphic Art Masterpieces: Henri Matisse consists of 83 lithography works which were brought to the country through the Noblesse Cultural Association.

Some of the exhibits have been displayed in various major museums around the world and the lithographs date from 1945-1950. The exhibition

Cinepolitica will once again offer movie lovers a selection of political films, debates and memorable meetings, aiming to lay bare to the audience political mechanisms and motivations through the art of cinema. The fourth Cinepolitica International Film Festival will show in competition movies such as The State-Mafia Pact / La Trattativa, directed by Sabina Guzzanti, NN, directed by Héctor Galvez and Giulio Ricciarelli’s Labyrinth of Lies. editorial@business-review.ro