Business Review No.18, May 23 - 29

Interview: A focus on niche segments has given insurer CertAsig an advantage in the recent difficult economic times, James Grindley, the company’s general manager, tells BR »page 8

ROMANIA’S PREMIERE BUSINESS WEEKLY

May 23 - 29, 2011 / VOLUME 16, NUMBER 18

SPECIAL REPORT GERMAN INVESTMENT GERMAN INVESTORS HAVE BROUGHT A TOTAL EUR 6.9 BLN TO ROMANIA, IN AREAS SUCH AS RETAIL, INSURANCE AND BUILDING. BR FINDS OUT THE PLANS OF MAJOR GERMAN PLAYERS PRESENT LOCALLY »PAGES 10-11 NEWS

That calls for a rebranding URBB has put EUR 2 million into rolling out Carlsberg’s local rebranding campaign » page 4 NEWS

Transport transformation The Bucharest public transport operator has replaced the old paper tickets with cards » page 6 MONEY

SMS banking

MACRO METAMORPHOSIS Brasov now has its first Macro store, after a local MiniMax was rebranded. And Dinu Patriciu, who’s heading the venture, is planning a network of a hundred »page 4

RESTAURANT Is Diamon really a girl’s best friend? Our food critic heads to a restaurant in a fitness club and is surprised by what he encounters there » page 12

FILM Is the latest Pirates of the Caribbean outing a timber-shivering triumph or set to sink without trace? Business Review dons its eye patch to find out » page 13

Turkey’s second largest lender Garanti says SMS banking is among its priorities in Romania » page 7 LINKS

To R&D or not to R&D? Does Romania still offer attractive conditions for research & development? » page 9

www.business-review.ro Business Review | May 23 - 29, 2011

3Q MariusVasile

NEWS 3

NEWS in brief WEEK in numbers

50 the place taken by Romania in this year’s IMD World Competitiveness Yearbook out of 59 economies

The mid-market sales manager at IBM Romania talks to BR about the company’s portfolio of mid-market services.

What domains do IBM Romania’s midmarket clients come from?

They come from all domains. We have all the industries in the mid- market portfolio: local public administrations, manufacturing, retail, public and private hospitals and medical centers, private and public education units. We also have a small component in financial services.

What are the characteristics of the midmarket in Romania?

There are various approaches as to what mid-market means. It does not include the public and government system such as ministries, agencies and governmental institutions, nor multinational companies, the financial services, utilities, telco and oil & gas. For the rest, all companies can be part of the mid-market.

These companies can have between 5 employees and 1,500 employees.

Of course, there are multinational companies with a presence in Romania that do not have 1,000 employees, but they are not considered part of the mid-market. otilia.haraga@business-review.ro

379 Agerpres

What are the top three most popular IBM solutions on the mid-market?

One type of solution most in demand on the mid-market in the last quarter was business analytics and optimization solutions, because companies need to know the trends on the market. The second type is cloud computing, which offers the optimization of resources and flexibility of the hardware and software infrastructure. Thirdly, many of our clients want resilience, disaster recovery and business continuity solutions. Everyone needs to have access to information 24/7 throughout the year. It was proven that very many companies which did not have access to information lost market share, in the best case scenario, and were even dissolved in some cases.

In 2010, there was a trend that saw everybody want an optimized and dynamic infrastructure and to cut costs. To a great extent, this has happened and now they are seeking to integrate this infrastructure with the respective applications on the business side.

IMAGE of the week Party victory adds to positive economic growth Prime minister Emil Boc was reelected president of the Democrat Liberal Party, beating off a challenge from Vasile Blaga. Boc won the presidency with 868 to Blaga’s 499. Boc has been prime minister for more than two years and president of the Democrat Liberal Party since 2005. He pronounced his party the “party that took Romania out of recession,” in reference to the recently reported 0.6 percent Q1 GDP growth.

ONLINE DPD starts e-payment service for parcel shipping platform DPD Romania, the parcel and express company, which does not use aircraft of its own for the transport of shipments within Europe, is launching its DPD Online service, the first card e-payment service for an online parcel shipping platform. The service is expected to up turnover by 5 percent within a year of launch. In other countries throughout Europe, around 50-90 percent of clients use the online platform.

MACRO Gov’t hails ‘end of recession’ Prime minister Emil Boc has said the reported 0.6 percent Q1 GDP growth marks Romania’s emergence from recession.

“Coming out of the recession is proof that the painful and unpopular measures we have taken were necessary. Economic growth would not have been possible if we hadn’t pushed the reform button.

We need not fall into the trap of populism,” said Boc. He added that although the signs were positive it would be some time before the effects will be felt. Speaking at the Democrat Liberal Party convention, President Traian Basescu predicted that economic growth this year would be higher than the estimated figure of 1.5 percent.

mln euros – the value of FDI coming to Romania in Q1 of 2011

500k phone numbers have been transferred to a different network since 2008, when their owners were allowed to keep their numbers

PROPERTY & TELECOM INFRASTRUCTURE Vodafone Romania reports EUR 836 mln revenue for 2010/2011

UniCredit Business Partner leases 10,000 sqm in Novo Park

UniCredit Business Partner, the back office activities company of UniCredit, has leased a four-storey building in Novo Park. The entire space taken up by the company reaches 10,000 sqm.

The Novo Park office project, which is being developed by Genesis Developments, is made up of seven office buildings, giving a total surface of over 70,000 sqm.

Metrorex plans EUR 300 mln expansion for fourth line Metrorex, the operator of the Bucharest subway system, is planning a EUR 298.5 million expansion of its fourth line to the Straulesti Lake area, where a terminal, parking lot, dispatch point and station will be built. The investment is set to roll out over a four-year period, and will be financed with a loan from the European Investment Bank, money from the state budget and Metrorex’s own resources.

The fourth subway line currently has four stations (Gara de Nord 2, Basarab 2, Grivita, and 1 Mai), while two others will be functional from July (Pajura and Parc Bazilescu). Further new stations are also planned at Laminorului and Lac Straulesti.

Vodafone Romania has reported EUR 836 million in revenue for 2010/2011, 3.9 percent down on the same quarter last year and 9.3 percent on a full year basis.The operator had 9.1 mln customers at the end of the financial year 2010/2011, 533,000 fewer on a y-o-y basis. The drop in its customer base resulted from the disconnection of inactive prepaid SIMs and a restatement of the base due to new reporting standards. Postpaid users accounted for 37 percent and prepaid for the remaining 63 percent of Vodafone Romania’s total customer base. The EBITDA was EUR 305.6 million for the financial year, a 22.8 percent y-o-y decrease. The company says the operational profit was impacted by the EUR 28.3 million fine received from the Competition Council.

POWER Concorde puts EUR 350 mln into two wind projects in Romania Groupe Concorde Developments (GCD) is putting EUR 350 million into two wind projects in Romania. The first has a 45 MW/h capacity, is located in Tulcea, and has a value of EUR 90 million. GCD is also negotiating to purchase a EUR 260 mln 120 MW/h wind project in the same area of the country.

www.business-review.ro Business Review | May 23 - 29, 2011

4 NEWS RETAIL

Patriciu opens first Macro store, says Romania not yet out of recession

Dinu Patriciu of Mercadia Holland

M

ercadia Holland BV, controlled by businessman Dinu Patriciu, has opened its first Macro store in Brasov by rebranding one of the company’s MiniMax units. The process required an investment of EUR 500,000. Mercadia plans to rebrand all of its other 55 MiniMax stores countrywide under the newly launched Macro concept and to open new ones, bringing the network to about 100 units by the end of this year.

Mercadia Holland BV has so far invested EUR 76 million but this will have to increase to about EUR 250 by the time the business reaches maturity, according to Patriciu. The company’s targets for this year are to increase its network to 1,300 Mic.ro stores from 507 presently, 1,000 mobile Mic.ro shops and 100 Macro units.

Patriciu said his role in Mercadia Holland BV was as a figurehead. “I am only an

investor. I am not behind but in front of this business. I am putting my reputation, my name and my professional pride at stake for this business, which is important not only for the company but for the Romanian community also,” he said. He predicted that Mercadia will become one of the most important interests of DP Holding in Romania in the following years. Presently DP Holding, which comprises all of the businessman’s local companies, has an exposure of over EUR 600 million on the local market. "I am not running away with the money to sunny destinations. I am investing in Romania where I have earned it,” the businessman said.

While recent statistics show that Romania is, technically, out of recession, Patriciu believes that this is not the case as it does not translate into a recovery of purchasing power. “Retail consumption decreased by 9 percent in Q1 2010 against the same period of 2011,” he said, adding that in his opinion consumption will not pick up in the next year.

Patriciu said that what will mainly differentiate Macro will be its focus on madein-Romania products which should constitute up to 90 percent of the total product portfolio in the years to come.

“It involves a huge logistics effort. In a year’s time I would like to be able to say that we have tens of thousands of local suppliers,” he said.

Simona Bazavan

FMCG

URBB puts EUR 2 mln in new Carlsberg ID

U

RBB has launched a new identity for its super premium brand, Carlsberg, with a budget of EUR 2 million for the local market. Based on a new slogan, “That calls for a Carlsberg”, it is intended to help the group reach double digit growth in 2011.

Carlsberg’s new communication campaign emphasizes the brand’s personality, and cites “courage, authenticity, modernity and accessibility” as its main values, according to company officials. The beer brand’s previous slogan (“Probably the best beer in the world”) will not however be fully replaced, said Doron Zilberstein, URBB marketing vice-president, as it will be included in various messages of the new

campaign in Romania (for example, “Perfection is never easy”). In the UK, Isaac Sheps, CEO of Carlsberg UK and former president of URBB, said that the former slogan will remain printed on the bottle, as it is already part of popular culture. Zilberstein added that the global campaign has been adopted by all 140 markets where Carlsberg is present. Localization has only been considered in the case of activation campaigns, mainly due to translation issues.

URBB’s Romanian portfolio includes beers Tuborg, Carlsberg, Skol, Holsten, Guinness and Kilkenny, soft drink Granini and bottled mineral water Bilbor, which was launched in June 2010.

Corina Dumitrescu

TAXES

EUR 3.3 billion lost in spirits tax evasion

T

ax evasion on alcohol and alcoholic beverages amounted to about EUR 700-750 million in 2010, which counts for more than 60 percent of the local market, according to Romulus Dascalu, president of the Employers Organization of the Alcohol and Alcoholic Beverages Industry (Garant).

Over the last few years, tax evasion in the alcohol industry has increased constantly in direct proportion to the hike in excise duty from EUR 150 in 2003 to EUR 750 from 2006, Dascalu explained.

This generated losses of about EUR 3.3 billion (EUR 4.5 billion with losses from

VAT included) for the state budget, he added. According to him the authorities are very much aware of the current state of affairs and in many cases tolerate it.

“The economic context of recent years has fostered tax evasion and boosted obscure companies while large manufacturers have lost ground. Illegal practices, such as selling spirits at a price that doesn’t even cover the excise duty, by companies that have also caused their own insolvency, must no longer be tolerated,” he said.

Simona Bazavan

www.business-review.ro Business Review | May 23 - 29, 2011

6 NEWS TRANSPORT

BR EVENT

BR Club looks at Art Stock Exchange

Contactless card for transport payment introduced, RATB drops paper tickets

Armchair-Wall by Teodor Graur went for EUR 9,500 at Artmark’s Postmodernism auction

Does Romanian art offer one of the best returns on investment rate on the market?

Who are the best rated Romanian painters, and how valuable is the work of local contemporary artists? These are topics that will be tackled at the first meeting of the BR Club, with experts of Artmark auction house, which has recently launched its second index of the Romanian art market.

Manuela Plapceanu, CEO of Artmark, will present BR club members with an insider’s perspective on the evaluation process of art work (drawing, painting, color techniques, engraving, sculpture, photography and posters) and on the monitoring process of more than 1,000 Romanian artists. The index monitors all

the public works auctioned in Romania, in the last 16 years.

The evening also includes a guided tour of paintings that belong to the hidden trove of the Bucharest Municipal Museum, which haven’t been displayed for decades.

The BR Club series of events are designed to bring to the attention of its members the perspective, experience, and vision of local and foreign experts on key topics of the business, social and artistic enviroment. ∫ First BR Club meeting, May 25, 19:00, Artmark headquarters in C.A. Rosetti

Courtesy of BCR

Courtesy of Artmark

Courtesy of Artmark

Nicolae Grigorescu’s Peasant Woman Resting was recently sold for EUR 270.000

swer the department’s call to find a partner to help identify various means of recharging the RATB Activ card,” said Adrian Crit, RATB general manager.

Moreover, as of this month, RATB has stopped printing paper tickets and will sell only cards that can be used either as an electronic wallet or a monthly bus pass. ∫ Corina Dumitrescu

Banca Comerciala Romana (BCR) and the Bucharest transport operator (RATB) have launched a travel card valid on all of Bucharest’s public transport network (subway included). The card is a Visabranded, contactless debit card, which has the transport application included. It automatically draws money from the user’s account, so it does not need to be topped up.

“After London, Bucharest is the second city in the world to have a card that can be used both as a banking instrument and a means of payment for public transport facilities,” said Oana Petrescu, BCR vicepresident.

“We began our partnership with BCR in 2007, when it was the only bank to an-

BUCHAREST PUBLIC TRANSPORT TICKETS A plastic card called Activ is on sale at RON 3.6. It can be topped up with a maximum of RON 50 for single journeys. The card can also hold monthly subscriptions, for a full price of RON 50 for travel on all buses, trams and trolley lines in Bucharest.

The non-rechargeable card Multiplu can cover either an entire day of travel in the city by public transport, or funds up to 10 journeys.

A RATB journey currently costs RON 1.3, but RATB plans to increase the price to RON 1.8.

www.business-review.ro Business Review | May 23 - 29, 2011

MONEY 7

Garanti Bank makes expansion and SMS banking priorities

∫ CORINA DUMITRESCU In Turkey, the bank currently holds over EUR 66 billion in assets, compared to a mere EUR 1.5 billion in Romania. However, Romania was picked as the first country for the bank’s expansion abroad, edging out its main competitor, Ukraine. “Romania was chosen on account of its potential for development, size (as the country is second after Turkey in the Balkan region and second after Poland in CEE), legislation, proximity and young population (with an average age of 38),” said Murat Atay, general manager of Garanti Bank Romania, a position he has occupied since January 2009. Prior to 2009, Atay held several positions within the group in Turkey.

Moreover, Atay added, the Romanian subsidiary is the only one involved in all aspects of the business – retail, SMEs and

Loans, a challenge for the local market While officials named reaching the top ten banks as their goal, unless the lender reaches profitability, an increase in market share is irrelevant. The bank is aiming to increase its loans by 30 percent in 2011, develop its level of assets by 20 percent and increase deposits by 25 percent. Moreover, it hopes to grow its credit card portfolio by over 50 percent, taking it beyond 115,000 credit cards.

Atay noted that Romania has one of the lowest rates of consumer confidence regarding loans in Europe, a consequence of the economic crisis, which strongly affected Romanians and encouraged them to spend less.

In Turkey, credit card ownership is widespread, and the sector is expected to grow by up to 25-27 percent this year. In 2010, the value of total loans in Turkey was an estimated EUR 220 billion. However, Turkey’s banking population is six times bigger than Romania’s.

Locally, the total value of loans reached EUR 786 million in 2010, 45 percent above the 2009 value.

SMS banking among group’s priorities in Romania The transfer of money via SMS is quite a common service for Garanti Bank in Turkey.

However, in Romania it does not exist. Local infrastructure and legislation seem to be the impediments, although the bank’s representatives did not offer more details on this matter.

“Currently, money transfer via SMS is only available in Turkey, but we want to bring it to Romania as fast as possible. It’s very easy for us to do this, we can do it in just a few weeks; but in Romania, it all comes down to infrastructure,” said BuAtay has big plans for the local market rak Yildiran, deputy general manager at Garanti Bank Romania. He added that the number of such transactions will grow Target: one hundred branches rapidly in the coming four-five years.

Locally, the bank aims to expand its current Through this service, money can be 75-branch network to 100 in the future, sent by a Garanti Bank card to someone which it considers sufficient to cover the who does not need to be a Garanti customer or even a card holder. A PIN is sup- “bankable” Romanian population. New units will soon be opened in Bucharest’s Lipscani plied to the recipient after the sender has made the transfer. The recipient then uses area as well as in Ploiesti. the code to withdraw money from a With a local customer base of 450,000, Garanti ATM, without using a card, by enGaranti Bank registered a 70 percent intering the telephone number of the percrease in assets in 2010, compared to 2009, son who sent the money, the amount sent reaching slightly over EUR 1.5 billion. (which can be learned from the sender) The total value of loans reached EUR 786 and the PIN that appears on the SMS, exmillion in 2010, 45 percent above the plained Ilgaz Kaya, central marketing 2009 value. director. A specialized secure application is used for this transfer. corina.dumitrescu@business-review.ro

Courtesy of Garanti Bank

Turkey’s second largest lender plans to become one of the top ten local banks. Introducing the SMS money transfer service and expanding its Romanian network are high on the bank’s to-do list.

corporate – while operations in Russia and the Netherlands focus on the corporate sector. “This is one of the main reasons why we receive constant support from our mother bank,” Atay added.

www.business-review.ro Business Review | May 23 - 29, 2011

8 INTERVIEW

Hoping for a Cert-ain future on the local insurance market go, property and personal accident will all increase in the medium- to long-term.

James Grindley, GM of insurer CertAsig, says the company managed to weather the recent difficult economic times by focusing on niche segments such as event insurance, including concerts, and insurance of commercial vessels.

To what extent has the crisis affected insurance for corporate clients?

Corporate clients look to economize during times of recession. Unfortunately insurance budgets are often high on their lists for potential savings. This ultimately means a lower budget for insurance and thus, less risk protection. Statistically it is well documented that the frequency of claims increases during an economic crisis. In fact it is during slow economic periods that businesses should look to buy insurance protection.

What are the pros and cons for insurance companies owned by foreign capital in the Romanian market?

CertAsig’s main capital provider and shareholder is a private equity fund managed by Royalton Partners. Royalton brings to our business a wealth of experience in the financial sector which is gained from its activities throughout the CEE region.

Such experience is a key competitive advantage.

The main investors in the Royalton fund include the European Bank for Reconstruction and Development (EBRD) and European Investment Fund (EIF), which are both AAA rated investors. Having such well respected and financially solid investors gives CertAsig a huge advantage. The foreign nature of our ownership also means that CertAsig has the benefit of some world class non-executive directors.

∫ STAFF

What was CertAsig’s strategy during the economic crisis? On which insurance products did you focus and who are your clients?

In 2010, the Romanian insurance market declined as a whole by about 5 or 6 percent by

Photo: Laurentiu Obae

What was your impression as a British citizen coming to work in the local insurance market?

My first impression of the Romanian insurance market was formed during my time at Aon Romania almost five years ago.

My experience with Aon, one of the leading insurance brokers in Romania, was a very positive one as they have an excellent team.

However I quickly realized the market was different to the Lloyd’s Market where I had spent the previous 12 years of my career. Many Romanians (both individuals and businesses) still did not fully trust the concept of insurance and sometimes viewed it more as a special tax than as a risk management tool. This difference in mentality towards insurance between consumers in Western European countries and Romania became very apparent to me.

I recall being surprised to learn that only about 5 percent of Romanian homes were insured – incredible! At the same time I realized that this meant there was huge potential for market growth.

I was also very surprised to learn that the motor insurance market was so dominant (about 75 percent of all non-life premiums) and even more so when I heard about the low levels of insurance rates and deductibles offered by the Romanian insurance market. As a Lloyd’s broker I had never been able to negotiate a zero deductible on a commercial insurance policy – but now in Romania I succeeded! After some months I observed the excellent loss ratios (claims/premiums) for the non-motor business and appreciated how the market could offer such competitive terms.

Another observation was the high level of transparency within the market; I came across XPRIMM and their quarterly market figure publications showing the performance of insurance companies in Romania. In addition, the Romanian market is well regulated; much of the insurance regulation is now influenced by EU legislation.

The market hopes to see increased demand for non-motor products which tend to be more profitable in terms of claims and premiums

the Black Sea. CertAsig also became one of the top insurers for liability insurance products. We offer third party liability, professional indemnity and employer’s liability, having a diversified array of clients including doctors, architects, constructors, lawyers, notaries, manufacturers, aircraft operators, ship-owners and builders, hoteliers, restaurant and bar owners, sports clubs and other associations.

total gross written premium over 2009.

However, CertAsig worked very hard with its broker partners to maintain its market position. We achieved this by focusing more than ever on specialist, niche products, that is to say mainly non-motor classes. Also, we launched various new products and consider ourselves to be one of the market pioneers for certain products in Romania (examples include: cargo, performance bonds, bid bonds, advance payment bonds as well as event insurance, including wedding and concert insurance). One of our most successful niche activities has been the insurance of commercial vessels trading in

How do you see the Romanian insurance market evolving in 2011 and beyond?

Motor insurance will continue to dominate the market in 2011 and this trend will probably continue for the next two to three years.

The market hopes to see increased demand for non-motor products which tend to be more profitable in terms of claims and premiums (loss ratios). Increased demand will be stimulated by European Union funds, economic growth and future foreign investment.

The winners in the market will be the insurance companies that can listen closely to their clients. It is clear that liability, car-

What is the company’s business strategy for this year and the next?

Our plan in 2011 is to further develop our relationships with the broker market community. By nurturing our brokers we are able to understand better our ultimate clients, their needs and are able to offer the insurance products they really want.

Our strategy is two-fold: to target corporate business and to focus on underwriting profit and not motor market share.Our reinsurers include SCOR, Hannover Re, Munich Re and Lloyd’s of London.

Our target gross written premium for 2011 is a minimum of EUR 7.5 million with a 35 to 40 percent technical underwriting profit.

This premium turnover would give CertAsig approximately 2 percent of the non-marine/non-motor market. In 2012 we aim to grow even more aggressively by which time we are confident the Romanian economy will demand more insurance.

CV James Grindley December 2010 GM of CertAsig July 2008 deputy GM of CertAsig April 2007 director of business development at AON in Romania November 1996 insurance and reinsurance broker at Lloyd’s of London

www.business-review.ro Business Review | May 23 - 29, 2011

LINKS 9

Easy come, easy go: is Romania still R&D friendly?

Cluj Napoca

While IBM is reportedly preparing to open a research center in Targu Mures, Nokia has announced it will slash its R&D operations in Cluj. The question is whether Romania is still a low-cost country? Does it still offer attractive conditions for research and development? What other R&D centers are there?

Pundits give BR the A-Z of R&D. ∫ OTILIA HARAGA “Romania is still a low-cost country and it will stay this way for five years at least…

It is not a bad thing for it to be seen this way, because I think it is important that the country attracts investors who will train people, educate them in an organized and responsible manner,” Eugen Schwab-Chesaru, managing director for Eastern Europe at Pierre Audoin Consultants, tells BR. Arguments in favor of opening R&D centers firstly include “the existence of grey matter, and at a fair price,” Dinu Bumbacea, partner and head of the management consultancy department at PwC Romania, tells BR. “Romania is enjoying both at the moment. In fact, Romanians’ presence in large numbers in research centers in the United States (Microsoft, Facebook, Google) supports the argument of grey matter. But not all Romanians are as adventurous,” he continues.

The decision to open an R&D center reflects issues such as the availability of the necessary HR with the required technical and linguistic levels and the right cultural and organizational mentalities.

The cost of the location is also a defining factor, including salaries, space rental and state taxes.

The accessibility of coordination, knowledge transfer and controlling teams come into play – this includes logistical factors such as access to an airport, direct flight routes etc.

Then, there is the level of security and predictability of the respective country, city and business environment. Last but not least, social, political, economic and

Nokia Opened in 2006, to be closed this year Developed software for Nokia’s global projects

Timisoara Alcatel-Lucent Three R&D centers for wireless technologies, applications and project management platforms

Targu Mures IBM R&D areas: health, pharma, nanotechnology, life sciences and smart cities.

Bucharest 1&1 Develops,among others, applications for monitoring, billing and intranet

military stability are also significant.

If these conditions are favorable, there is also a strong “friendship” factor. “The respective country via the public and sometimes private system proves its interest in the products/services of the in 2003 and focuses on software develcompany, which in turn agrees to “return” opment for media servers, digital media a part of the earned money by making a applications, video streaming servers, medium-to-long-term investment in the content management applications and territory in question,” says Chesaru. e2e test platforms for applications.

US giant IBM is in the process of Work at the third Alcatel-Lucent faopening a research center in Targu Mures cility, which was opened in 2005, has cenafter an agreement was signed between tered on network and system integration the company and the Targu Mures City dealing with specification, third party Hall. The Transylvania Center of Excelcustomization, configuration, testing, lence in Research will conduct research on-site installation, customer support into health, pharma, nanotechnology, and integration. life sciences and smart cities. A working Another company with R&D operagroup will analyze the various areas of tions in Romania is US Freescale, which competence and the investments necesin ten years has expanded its software ensary for opening the facility. When these gineer team from 5 to around 200 people. aspects are completed, the next step is to “The Romanian center has around 200 enfound the center, and a research agreegineers developing software. It is probament will be signed by the parties inbly our only R&D center exclusively dedvolved, which is scheduled to happen in icated to software,” Raja Tabet vice-president of the software and system unit of June. Once the contract is signed, IBM the firm, told Ziarul Financiar earlier may contribute with know-how, expertthis year. Company officials did not comise and patents, but the center will emment to BR on this issue. ploy researchers from Transylvanian uniElsewhere, software firm 1&1 Romaversities.

But others were ahead of the curve. nia plans to reach 250 employees this year, and is looking for developers specialOne of the companies with long-term ized in Java and JavaScript, PHP and R&D activities in Romania is Alcatel-LuC++. 1&1 is active in Romania mainly cent, which has three such centers in through its software development center Timisoara employing 550 expert engiin Bucharest, where work is carried out neers. The investments in the R&D cenon products for the entire 1&1 group. It ters amounted to tens of millions of euhas two kinds of projects in Romania: inros. ternal software projects such as applicaThe first, then called Mobile Radio tions for monitoring, billing and intranet R&D Center but now known as the Wirethrough to software platforms for data less department, was opened in 1999 center automatization, and external apand plays host to R&D into GSM, 3G and plications.

LTE. The second R&D center was opened

Intel R&D activities for open source MeeGo platform; develops software for smartphones, smart TVs, and car infotainment systems.

But it’s not all about growth and expansion. Just recently, Finnish communications giant Nokia announced that it would close its R&D center in Cluj and axe 120 positions. “Nokia estimates that by the end of the third quarter of 2011, the current projects being developed in this location will be completely scaled back.

R&D operations will continue in other Nokia centers around the globe. We estimate 120 people will be affected,” said company officials. These measures are part of the firm’s stated aim to cut unaudited IFRS operational expenses by EUR 1 billion in the services and devices division in 2013, compared to 2010.

In Bumbacea’s view, the relocation of activity from one country to another is generally a rather costly process. “The business case is not positive from the first day. Strictly from the point of view of operating costs, it is possible to save on expenses immediately. But the decision is also based on other reasons – the cost of ending work contracts in the country where the center is closed, costs related to the infrastructure, image benefit versus damage and, last but not least, the legislative stability and facilities obtained following this relocation,” he says.

Pundits predict that centers of this type will continue to be opened in Romania but with “less enthusiasm”. It also depends a great deal on how Romania manages to keep talented people with IT skills from leaving the country.

otilia.haraga@business-review.ro

www.business-review.ro Business Review | May 23 - 29, 2011

10 GERMAN INVESTMENT

Teutonic Titans advance against slow market

The economic crisis has taken its toll on foreign direct investments to Romania over the past two years, but according to the numbers German investors have defied the general trend, and EUR 6.9 billion has been invested in total locally. Business Review takes a look at the results posted by big German investors in 2010 and some of their plans for the local market. ∫ SIMONA BAZAVAN Germany’s famously solid firms have suffered along with the rest in Romania in the last couple of years. However, looking at how local German companies have negotiated the crisis, it seems that the worst has passed and as the local economy shows signs of recovery, albeit at a measured pace, investment plans are again in the cards. Last week alone Bosch announced that it intends to expand its production unit in Blaj and to build a new greenfield factory after posting a 17 percent turnover increase last year locally.

Germany ranks third among the top foreign investors in Romania, but beyond facts and figures, German companies have become deeply involved in the local economy, filling top positions in retail, energy, manufacturing and insurance to name but a few, and stating their interest in other fields such as green energy and environmental technology.

Retail leads the way Consumption further decreased in 2010 shrinking the sales of local retailers, but it is not all bad news. Rewe Group has announced that its local Penny discount network registered a 4.3 percent turnover increase last year, recording “above-average

LOCAL GERMAN INVESTMENTS Number of German companies*: 5,647 active companies with more than 30 percent direct German shareholding Turnover June 2010: EUR 7.2 billion Turnover June 2009: EUR 5.2 billion Number of employees: 175,804 * Financial data at June 2010 Source: ICAP Romania development”, according to the company’s financial report. The performance reported in Romania is followed by the results in the Czech Republic (+3.8 percent).

The retailer opened seven new Penny Market stores countrywide last year. In Romania Rewe Group operates the Billa, Penny Market and Penny Market XXL networks. Overall, the German retailer announced a turnover increase of four percent to about EUR 53 billion.

German Metro Group, which locally operates Metro Cash & Carry and Real hypermarkets, posted sales of EUR 1.83 billion in Romania last year, down 3.5 against 2009. The drop was generated by a 7.3 percent sales decrease for Metro

Cash & Carry (EUR 1.13 billion) while Real saw sales go up by 3.4 percent (EUR 694 million) in 2010. Metro Group’s local network is made up of 26 Metro Cash & Carry stores and 25 Real hypermarkets.

2010 proved to be as hard as nails for local DIY (do-it-yourself) retailers. Praktiker Romania reported net sales of EUR 193.6 million in 2010, 21.8 percent less than the previous year, due to the general economic climate and an overall decline in the DIY market. Praktiker has a 6.4 percent market share in Romania and its main competitors are Dedeman (6.5 percent), Bricostore (4.6 percent) and Baumax (2.9 percent), according to the retailer’s data. In Romania Praktiker has 27 stores.

Other German players on the market are OBI, which has a network of seven units locally. Throughout last year OBI invested EUR 20 million in opening new stores and it plans to keep the same level of investment for this next year too.

Hornbach, another German DIY chain active in Romania since 2007, added one more megastore to its local network after finishing an investment of approximately EUR 30 million in Balotesti, near Bucharest, in December. It has announced plans to open another unit in Bucharest.

ther invest in training and developing local employees and in the company’s image on the local market by rebranding the fleet for the whole country by the end of Q2. “We are forecasting double digit growth for 2011, in line with our strategy of increasing market share, following our investments in improving international cut-offs. Q1 results are above expectations in both international and domestic volumes,” Sharp concluded.

German investors think long term

German Bosch announced last week plans to further invest in expanding its local production unit in Blaj and to build a new greenfield factory. The actual amount to be invested and further details will be made public in the second half of this year, company representatives announced. Bosch Romania posted sales of EUR 161 million last year, 17 percent up on 2009 and the same level as in 2008. This year, the company targets a further 7 percent increase. “Automotive technology posted the best results,” said Brigitte Eble, CEO of Robert Bosch and representative of the Bosch Group in Romania. Bosch runs five centers in Romania including the Bosch Communication Center in Timisoara, the Bosch Rexroth factory, an extension at the Compa factory in Sibiu and a distribution company Saving for rainy days in Bucharest. At the end of 2010 Bosch The second largest player on the local in- Romania had 1,150 employees, 200 more surance market, Allianz-Tiriac, has report- than in 2009. ed a 7 percent decrease in subscribed gross Elsewhere, last year E.ON Group celpremiums for Q1 2011, to about EUR 60.6 ebrated five years on the local market. Bemillion. tween 2005 and 2009 the German group Another German player, Signal Iduna, invested about RON 1.26 billion in upannounced earlier this year that it had in- grading the local gas and electricity creased its social capital by EUR 2 million distribution grids with RON 260 being inearlier this year to a total of EUR 14.99 mil- vested in 2009 alone. E.ON Group replion. The company’s main shareholders resentatives announced last year are Signal Iduna Holding AG and Signal that E.ON companies have been forced to Krankenversicherung AG. Leslie Breer, adjust their initially proposed investpresident of Signal Iduna Romania, said ment budget, which was “significantly the recent capital injection confirms the below” the amount invested two years company’s commitment to the local mar- ago. ket and its plans to continue investing here. In 2010 and 2011 the company has Talking concrete plans increased its social capital by almost The local cement market us estimatEUR 4 million. “The prolonged local cri- ed to have dropped by 10 to 15 percent last sis hasn’t changed our objectives as a year. Local Carpatcement Holding, part of company. Signal Iduna continues to be German HeidelbergCement also saw it committed to the goal of bringing quali- turnover go down by 10 percent in 2010 ty private health insurance to Romania,” from the EUR 240 million registered by its said Breer. He added that this year the three local divisions the previous year. company also plans to focus on expand- Against this backdrop the company has ing its accident and life insurance prod- invested approximately EUR 8 million last uct portfolio. year in various production-related projects and mainly in modernizing the equipment and a similar budget is Delivering further growth The courier express market stagnated in planned for 2011, Florian Aldea, general 2009 and 2010 at a value of around EUR manager of Carpatcement Holding an200 million and some of the smaller nounced at the end of 2010. players went bust. Against the general trends on the market, DHL recorded a simona.bazavan@business-review.ro double digit total revenue growth in 2010 versus the previous year, mainly driven by international express volumes as a result of intra-European trade lanes development, Gian Sharp, managing director of DHL Romania, told BR. “Our objectives for 2011 mainly aim at operational German Business Forum investments in improving transit times More on the German business and cut-offs, these being the most relecommunity, and the chance to netvant elements for our customers when work with top representatives of choosing an express courier delivery German companies in Romania, at partner,” said Sharp. next week's Country Focus event In 2010, DHL launched a new airorganized by BR. craft in Cluj and it will make a EUR 2 milCrowne Plaza Hotel lion investment in new shelved vehicles Crowne Ballroom, Hall B in order to improve productivity, added May 24 the MD. The company also plans to fur-

BR EVENT

www.business-review.ro Business Review | May 23 - 29, 2011

GERMAN INVESTMENT 11

INTERVIEW

German investors set the wheels in motion

∫ SIMONA BAZAVAN Do the reasons that made German companies come and invest in Romania a few years ago still apply or have they changed?

Before the crisis, German investors came to Romania for a few main reasons: relatively low production costs, good language skills and its geographical location which made it an attractive place for production. The large size of the country and the high pent-up demand of its people promised a domestic market with high potential for growth.

As everywhere, the economic crisis significantly slowed down investment.

Now that the economic situation seems to be improving, many are taking a fresh look Romania as a place to invest. What you can see is a mixed picture. The sit-

What can you tell us about bilateral trade in 2010 as compared to 2009?

Bilateral trade increased in 2010 by about 18 percent from around EUR 12 billion to EUR 14 billion. Romanian exports to Germany rose significantly by about 26 percent in 2010 after an increase of 8 percent in 2009. One reason for this development is the prospering German economy and the increase in domestic demand in Germany.

This is obviously an advantage for Romania as well since this demand fuels our bilateral trade relations.

Photo: Laurentiu Obae

Many German investors are taking a fresh look at Romania with a clear focus on industries such as automotive and IT, Dr. Sonja Kreibich, economic and commercial counselor with the German Embassy to Bucharest, told BR.

uation is also very different, depending on which sector you are talking about.

Some of the major German investors are currently extending their presence in the country. They have also benefited from the development of production clusters in their respective sectors. The downside to this is an increasing scarcity of well-trained workers. On the medium-term, this presents a real danger to Romania’s position as a place for production. Other investors have recently withdrawn from the Romanian market after a re-assessment of their business plans or because of doubts about the general business climate. We have also noticed that the enthusiasm that many previously had as regards the development of the Romanian domestic market has waned, as expectations of growth have not materialized.

What are currently the greatest impediments to doing business in Romania? Has the situation improved or worsened in the past year?

A crucial role in a company's decision whether to invest in a certain country is its business climate. Unfortunately, the perception of the business climate in Romania continues to be not too good: the judicial system is often inefficient and unpredictable; public procurement procedures tend to be not always as transparent and structured as they could be; the administration is not very efficient due to corruption and prevailing legal problems.

Equally, frequent and ill prepared legal changes have a negative effect upon the general investment climate. In these areas there is still potential for substantial improvements.

How do you see future German investment projects in Romania?

We will see more investment in the auto-

motive and IT industries. Bosch and Continental, two major players in the German automotive industry, recently announced substantial new investments. Furthermore, Romania has great potential in the field of renewable energies and environmental engineering, such as waste water management. The German-Romanian Chamber of Commerce is fostering collaboration and new investment projects in this area. Last year the internet platform Econet Romania was launched and recently a conference on this matter was organized in the Reichstag in Berlin.

Food production and packaging are two sectors where Romania is currently not exploiting its potential to the fullest. Modern production facilities would also reduce Romania’s dependency on imports of food products.

And finally, there is infrastructure. We hope that Romania will soon implement its ambitious plans in this area, since better infrastructure is key to Romania’s ability to attract future investments. German companies stand ready to contribute their expertise. Just to give you some examples of current activities: Thyssen Krupp was involved in the construction and servicing of the elevators and escalators in the new terminal of the Henri Coanda International airport. The German company WTE Wassertechnik is planning and building sewage plants in Gherla and Huedin (near Cluj). The German construction company Max Bögl has just started to build a new Metro station on the future line number 5 in Bucharest (Valea Ialomitei) and Siemens is involved with RATB in the reorganization of the Bucharest tram lines.

simona.bazavan@business-review.ro

www.business-review.ro Business Review | May 23 - 29, 2011

12 CITY RESTAURANT REVIEW

Get fit and fat Diamon Fitness Club Restaurant, Tineretului Park, tel 021 330 5071

It is a weird experience eating my heart out in a fitness center. But that is where I am, and I got here by accompanying a family of friends, resplendent with screaming kids, to Tineretului Park. The ‘kid factor’ here is important because it has the biggest kiddie open air funfair in Bucharest.

If you want an escape from the brats, you can join the grown-up brats in the well equipped Diamon Gym and tennis courts, and to escape the grown-up fitness brats you could do as I did and stuff your face in their surprising restaurant.

And it is surprising for two reasons: The interior is just cheap brown tables with cheap brown chairs surrounded by brownish walls and brown terracotta floor tiles. But the surprise arrives with the menu. It boasts 140 dishes, which is a strutting bluff which too many local restaurants adhere to. There was no way they could stock up and be geared for 140 dishes, so I knew instinctively that the waiter would come back to our table apologizing for non-existent dishes. But what of the dishes they could produce...well read on and see!

So Blondie ordered a Bloody Mary but they had no Tabasco, celery or celery salt.

Photo: Laurentiu Obae

MICHAEL BARCLAY

So it was not a Bloody Mary. We had a waiter’s apology instead. He apologized again when we ordered a ‘roast lamb with egg, bacon, pancake and tzatziki sauce’. Another apology came when we ordered the nonexistent ‘roast beef with potatoes’ and the ‘roast..’ Oh, what is the point of listing them? They had no roast dishes, but like every other Bucharest restaurant, they refuse to strike the phantom dishes off the menu.

But what we did get was good. So Blondie dived into a ‘salmon tartar’. This dish is a modern invention of a mere 10 years or so ago, based upon the classic ‘beef tartar’. Because it is so new, there are no rules as to how to make it. But suffice it to say it must contain chopped fresh raw salmon with olive oil and onions – and after that the kitchen can add anything they choose, from capers to Worcester sauce and so on. But we were both amazed when it arrived, for not only did Blondie squeal with delight at the taste, but it was huge. A massive amount of hot toast, a mountain of butter and a salad accompanied this ‘starter’, which was so generous in size that it could have been served as a main course.

Likewise with my starter of ‘Parma ham with shaved Parmesan’. It was gigantic and I ended up boxing it to take home for breakfast. We passed on 10 further starters which were unremarkable in the House’s choice, and all priced around RON 30, including: calamari, prosciutto, beef Carpaccio and fried Camembert.

Exercise your palate: the eatery is situated in a fitness club

Off to the grill section of the menu which really just contained the usual grilled stuff of chicken, pork, lamb and trout. But my eye was caught by the grilled ‘octopus with spicy tomatoes, garlic oil, mayo, sour cream and parsley’. Oh yes, I am going back to try that one out. At prices ranging from RON 20-80 there was ‘beef sirloin in balsamic vinegar sauce’, ‘beef sirloin with mushrooms’, beef sirloin with all of the above plus sour cream and so on. This is how they build up a menu of 140 dishes.

They just add another vegetable and call it a different dish.

So a similar theme occurred with their 12 chicken dishes, one of which had us falling off our seats with good humored laughter, for they had ‘IRISH chicken’. Oh come on, give me a break. It was chicken with pepper, carrots, zucchini and yogurt.

If it was genuinely Irish chicken, it would contain no chicken!

There were 18 pastas, all of which were the usual suspects, so I do not have to list them. But Blondie gets the star award for her choice of ‘smoked ham joint’. It was a slow casseroled smoked ham on the bone, and it was as good as I have ever experienced in this country. Bravo House. I followed with ‘seafood with white wine, garlic and dried chili’. It arrived steaming with calamari, moules, baby octopus and large prawns, all at RON 35. There was no rice or salad, as none was necessary. This huge dish had been ‘padded out’ or ‘infilled’ with shredded crabstick to give it bulk.

It was good.

We passed on 18 pastas and 23 pizzas and too full to eat any more, I noticed their ‘beef in a salt crust, with herbs, risotto, chicken and asparagus.’ That’s it. I am definitely going back there.

mab.media@dnt.ro

www.business-review.ro Business Review | May 23 - 29, 2011

CITY 13

FILM REVIEW

Pirates of the Caribbean: On Stranger Tides

Caribbean Queen: Penelope Cruz is Johnny Depp’s feisty love interest in the fourth Pirates voyage, while Ian McShane is a grizzled Blackbeard

Directed by: Rob Marshall Starring: Johnny Depp, Penelope Cruz, Ian McShane, Geoffrey Rush On at: Baneasa Drive in Cinema, Cinema City Cotroceni, Cinema City Cotroceni - Sala VIP, Cinema City Sun Plaza, CinemaPro, Cityplex, Hollywood Multiplex, Movieplex Cinema, Samsung Imax Cotroceni, The Light Cinema

∫ DEBBIE STOWE Ahoy me hearties, after four long years of being lost at sea, ye olde Pirates of the Caribbean franchise be back for its fourth instalment. Johnny Depp be now enjoyin’ a treasure trove of doubloons for reprisin’ his role of Cap’n Jack Sparrow and puttin’ in a couple of hours of swashbuckling.

Past series stars Keira Knightley and Orlando Bloom have jumped ship, so the love interest is now provided by Penelope Cruz, as a feisty first mate with whom Jack has history. In the villain corner, there’s leathery old Blackbeard (British actor Ian McShane), some zombie pirates, duplicitous mermaids and faceless Spaniards.

They’re all – except the mermaids who are splashing about a bit and trying to kill and eat everyone – on a quest to reach the Fountain of Youth, which can extend the lifespan of the one who drinks from it.

This basic premise is embellished with various subplots, some of which assume knowledge of the previous films.

Should you have avoided these, be informed that the character of Barbossa, a captain of one of the ships rushing to-

wards the fountain, used to be bad but now he’s good and annoyed that the Black Pearl ship has been shrunk and put in a bottle by Blackbeard who can do voodoo. Got it?

Don’t worry about it if not because the plot is not of major import. On Stranger Tides’ chief highlight is the use of location.

From the opening scenes in 18th-century London and the pirate ship, to the jungle around the Fountain of Youth as well as the fountain itself, the settings are impressive, particularly in 3D. The stars – who include two Oscar winners, Cruz and Geoffrey Rush as fellow buccaneer Barbossa – all put in a decent turn, with Depp’s effortless highcamp-on-the-high-seas routine showing why his presence is so essential to the franchise. There are some funny lines and proceedings sail along with characteristic brio.

One bum note is the violence. Of course, pirates were not known for their peace-loving ways, so it’s natural to expect a few characters to meet an unpleasant demise. But amid the fun sword fights and set piece set-tos are scenes of brutality and cruelty that will upset younger viewers, surely the film’s target audience.

It’s hard to return with a fourth film after a long gap – look at Die Hard and Star Wars. It is inevitable that some of the freshness and verve that have made the serious such a juggernaut will have waned. But the huge commercial wattage of the first three Pirates outings along with the shipshape A-list crew probably ensure On Stranger Tides will shiver enough timbers for the makers.

editorial@business-review.ro

www.business-review.ro Business Review | May 23 - 29, 2011

14 IN TOUCH CULTURAL EVENTS

BUSINESS AGENDA

Bucharest Opera House May 27 19.00 Barbiere di Siviglia Featuring: Almaviva (Valentin Racoveanu), Don Bartolo (Mihnea Lamatic), Rosina (Maria Jinga), Figaro (Vicentiu Taranu)

May 23 8:30 Microsoft organizes the Leadership@Feminine event at Novotel. By invitation only.

George Enescu Philharmonic May 25 19.00 Cello and piano recital Sala Mica On the bill: Claude Debussy, Arthur Honegger, Richard Dubugnon, Bohuslav Martinu, Johannes Brahms Performers: Adam Mital (cello), Olimpia Tolan (piano) Romania’s National Art Museum April 29 – July 31 Katsushika Hokusai (1760-1849).

Thirty-Six Views of Mount Fuji A Japanese prints exhibition Kretzulescu Halls Contemporary Art Museum May 24 – June 4 Snapshots: Retrospectives and Opportunities, EEA & Norway Grants photo exhibition The Royal Norwegian Embassy, Innovation Norway, and the Bucharest Art University organize a photo exhibition of projects supported in Romania by the Norwegian government.

The opening event takes place on May 24, at 10.30 in the Foto Anexa (third floor), part of the Contemporary Art Museum

WHO’S NEWS Mariana Diaconescu

May 24 ∫EVENT Business Review organizes the third German Business Forum event at the Crowne Plaza Hotel. For more information please visit www.business-review.ro/events.

11:00 Schultz Consulting organizes an event for the launch of the ‘Antre(pre)nor for performance’ project.

By invitation only.

12:00 The first Hope Pop-Up Store charity shop opens in Baneasa Shopping City. By invitation only.

May 25 10:30 Danone Romania organizes a press conference to announce its financial results and future plans for the local market at InterContinental.

By invitation only.

June 2 19.00 WU Executive Academy organizes a debate on the challenges of management in an era of complexity.

At the Hilton, Regina Maria Hall.

June 7 ∫EVENT Business Review organizes the third American Business Forum event. For more information please visit www.business-review.ro/events.

FROM OUR READERS

WHAT WE ARE WORKING ON

Talking point:

Corina Dumitrescu Journalist

“Piatra Neamt, a symbol of Romania’s tourism potential,” BR 17 While discussing Romanian tourism is a welcome attempt, putting concepts such as ‘tourist potential’ under the same scrutiny might give further depth to this laudable action, maybe adding new dimensions to the discussion. The results could be surprising. The term ‘tourist potential’ belongs to the 1970s, therefore one could consider it ‘old fashioned’ with reference to modern tourism. Romania is about the only country in the world to be still using it expensively. The term describes more or less everything that might be related to tourism. But it does not mean tourism and certainly does not bring in tourists.

Furthermore, those countries which did not possess ‘tourist potential’ have invented and/or built it. The world of tourism abounds in examples of ‘fake’ authentic tourist attractions. Therefore the situation of this country’s tourist potential is pretty clear. Lots of it!

But... where is the modern tourism? Yes the lack of infrastructure is definitely a big point. The lack of professionals too. There is much lacking in Romanian tourism but probably the most important aspect has do with identity. Romanian tourist attractions lack identity. [...] The world is full of nice villages, historic towns, fortresses, monuments and protected area. Why would the Romanian ones be more attractive and worth struggling to reach?

Daniels Dumbraveanu

is preparing to interview Romanian violinist Alexandru Tomescu. With a record of over one hundred national first prize awards and 26 international distinctions and holder of a Stradivarius violin since 2007, Tomescu is one of the best known and acclaimed contemporary Romanian musicians. Among other topics, Tomescu will speak of his plans and his choice to remain in his home country. corina.dumitrescu@business-review.ro

Simona Bazavan Journalist is researching a report on US investments in Romania.The American business community has always been a strong voice in the local business environment, and Romania has proved to be a popular destination for US investments in IT, FMCG and car manufacturing. The IT sector stands out in particular, hosting numerous American companies, some of which came here as early as the 1990s. simona.bazavan@business-review.ro

Business Review welcomes information for Who’s News from readers.

Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro sets, content services, strategy and brand in a range of territories including the UK, Germany, Japan and the Netherlands.

Slater is also a former board member of Vodafone Netherlands. He holds an MA degree from Oxford University.

Business School and Harvard Business School. He is also a vice-president and board member of the Foreign Investors Council.

(Law and International Relations department) and has an MBA from the IEDC Bled School of Management in Slovenia.

Valentin Petrof

Gaetan Pacton

is the new chief marketing officer of Vodafone Romania as of next month. He joined the company in 2003 and has worked in marketing including product, proposition, hand-

has been reappointed

by KPMG for a second term as senior partner for Romania and Moldova. He is a board member of KPMG in CEE. Toader holds an Executive MBA from Ecole Nationale des Ponts et Chaussees, Paris as well as diplomas from the University of Edinburgh School of Management, London

has been appointed country manager of Manpower Romania.

With over 13 years of experience in management and sales he has been involved in both local and global business ventures, in industry sectors like telecom and banking.

Previously, he occupied the position of managing director at Creditexpress Romania and Bulgaria. He is a graduate of Nicolae Titulescu University in Bucharest

has joined Profi as operational director.

He has over ten years of profession experience in retail. Over the years Pacton has held various positions while working for retailers such as Carrefour. His appointment coincides with the opening of Profi’s latest store in Bucharest which is also the company’s largest so far in the capital.

ISSN No. 1453 - 729X

FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALISTS Otilia Haraga, Dana Verdes JOURNALISTS Simona Bazavan, Corina Dumitrescu COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi, Michael Barclay ART DIRECTOR Alexandru Oriean PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu

PUBLISHER Anca Ionita EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Adina Milea SALES & EVENTS Ana-Maria Nedelcu, Claudia Munteanu RESEARCH & SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat

ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 Fax: 031.040.09.34 EMAILS Editorial: editorial@business-review.ro Sales: sales@business-review.ro Events: events@business-review.ro

is the new president of Asirom after the resignation of Boris Schneider who has held the position for the past six years. Diaconescu joined Asirom as financial manager in 2005. She had previously served as president of state-owned import-export bank EximBank.

Angus Slater

Serban Toader