INTERVIEW: Igael Porecki, general manager of JW Marriott Bucharest, says the hotel is getting ready to invest in renovating its rooms, while looking at opening several Courtyard units over the coming years »page 8
ROMANIA’S PREMIER BUSINESS WEEKLY
LINKS DEUTSCHE TELEKOM’S BUSINESS INCUBATOR HUB:RAUM IS RECEIVING APPLICATIONS FROM ROMANIAN COMPANIES, AND HAS ALREADY FINANCED ONE LOCAL VENTURE » PAGE 10
JULY 21 - 27, 2014 / VOLUME 18, NUMBER 27
ENEL PACKS UP LOCAL ELECTRICITY DISTRIBUTION
Italian utility firm Enel faces ongoing litigation and low interest from locallybased utilities in selling its distribution and sales operations in Romania, say commentators » page 6
NEWS
CITY
Toiling for tax
Dining room with a view
Firms have welcomed the 5 percentage point cut in social insurance contributions, but hope no tax hikes will follow to plug potential revenue gaps
» page 5
BR surveyed the top high-rise restaurants to see what the capital has to offer those looking to escape the bustle of Bucharest
» page 11
www.business-review.eu Business Review | July 21 - 27, 2014
NEWS 3
NEWS in brief
WEEK AHEAD July 21 Business clinic – basic accounting This introduction to small business accounting covers areas from terminology to making and reading accounting documents. Two certified accountants, members of the Body of Expert and Licensed Accountants of Romania (CECCAR), will join Impact Hub to host a business clinic introducing interested parties to the basic tenets of this complicated field. Impact Hub, 18.00
AIRLINES Tarom cuts losses by 44 percent in 2013 State-owned airline Tarom reported a RON 130.1 million (EUR 29.4 million) loss in 2013, down 44 percent y-o-y, according to Mediafax newswire. This was above the Romanian carrier’s target for last year, said company representatives. At the same time, the airline increased its turnover by 3.5 percent to RON 1.08 billion (EUR 288 million). In 2012, the carrier reported a RON 230.6 million (EUR 51.8 million) loss and a net turnover of RON 1.048 billion (EUR 235.5 million). Following Romania’s agreement with the IMF, the firm has been privately managed since 2012. Set up in 1954, Tarom now operates a fleet of 24 aircraft (Airbus, Boeing and ATR).
July 22 Deadline for investment fund managers Today marks the deadline for European Union alternative investment fund managers (AIFMs) looking to market their EU AIFs via the pan-European marketing passport introduced by the Directive to submit their application for AIFMD authorization.
Courtesy of Initiative
ENERGY Local renewable producers got EUR 376 mln of incentives in 2013 Romanian consumers paid EUR 376 million to renewable producers through green certificates, the costs of which were included on their bills in 2013, according to a market report published by energy regulator ANRE, reports Agerpres newswire. The incentives budget rose from EUR 300 million in 2012 and EUR 100 million in 2011. The government stepped in last summer to postpone the issuance of some green certificates, in a bid to limit the impact of incentives on the electricity bills of households and companies. Projects coming online as of this year now receive fewer certificates, since the ANRE ruled that producers were recovering their investments too fast. Renewable energy accounted for 40 percent of the gross electricity consumption in Romania last year, according to the regulator.
INVESTMENT
Next step: setting foot in Bucharest’s iconic buildings Xenofon Street was painted with images of flagship Bucharest buildings during a seven-day endeavor carried out by artist Eva Radu, along with media agency Initiative, part of the Bucuresti la scara cultural project. Xenofon Street, located in the Carol Park area, is the only street consisting of steps in the capital.
IT Alten Romania opens new office in Timisoara French group Alten has expanded its footprint on the Romanian technical consultancy suppliers’ market by opening a new office in Timisoara. The consultancy opened its first local office in Bucharest in 2006. The Timisoara office will be managed by Florentina Barbulescu. Alten Romania currently employs over 150 specialists in its two Romanian branches.
FDI up 13.9 percent to EUR 1 bln y-o-y The level of foreign direct investments (FDI) to Romania rose by 13.9 percent to EUR 1 billion in the first five months of the year against the same period of last year, according to the National Bank of Romania (NBR). Out of the total FDI, equity stakes (including reinvested earnings) amounted to EUR 910 million, while intragroup loans stood at EUR 181 million. Romania attracted the largest amount of FDI, EUR 306 million, in May.
LEGAL Employee inventions law to attract R&D, say German investors The approval of a new regulation in June protecting employees who come up with inventions while working for companies could enhance Romania’s attractiveness to firms doing research
and development (R&D), says the Romanian-German Chamber of Commerce and Industry (AHK Romania). The provisions of the new law (no.471/2014) would primarily help the automotive industry and its suppliers that are active locally, according to AHK Romania.
EU Foreign Affairs Council in Brussels The Foreign Affairs Council is responsible for the EU's external actions, covering a wide range of issues from foreign policy and defense to trade, development cooperation and humanitarian aid. It defines and implements the EU's foreign and security policy, which is based on the guidelines set by the European Council. The meeting will gather defense, development and trade ministers from EU member states. July 23 Romgaz auction Natural gas producer Romgaz has submitted an offer to sell 318,000 MWh of gas on OPCOM, according to information published on the stock market’s website. The auction will take place on July 23 with a delivery interval established for 1-31 August.
MOST READ
RETAIL Debenhams could return to Romania A Debenhams store could be opened in the capital’s Bucuresti Mall, about a year after local businessman Octavian Radu dropped the franchise, according to Mediafax newswire. The retailer is currently negotiating to lease space in the mall, according to the same source. Radu, who prior to the crisis owned several retail franchises through Rafar, the fashion franchise division of RTC Holding, established the first local Debenhams store in 2007 in Bucuresti Mall.
www.business-review.eu 1 Rumor: Air France-KLM looking to buy Wizz Air
2 IKEA opens online store for Romania
3 Romania, riskier to invest in than Bulgaria, Hungary and Malaysia
4 Mercer study: Expat living in Bucharest is getting more expensive in 2014
5 New Romanian hydrocarbon
discoveries could be announced in the next period, says minister
www.business-review.eu Business Review | July 21 - 27, 2014
4 NEWS IT
DNA looking into state’s Microsoft license contracts Romania’s Anti-corruption Office (DNA) is leading an investigation into several public contracts for the lease of Microsoft IT licenses to schools. Last week, Sorin Eftene, former interim GM of Microsoft Romania, along with state officials including Mihnea Costoiu, delegate minister for higher education, were called to testify by DNA prosecutors. ∫ OTILIA HARAGA
Courtesy of Microsoft
An in rem investigation is being conducted by prosecutors, into suspected influence-peddling and bribery. (The in rem jurisdiction assumes the property or status is the primary object of the action, rather than personal liabilities.) Approached by Business Review, Microsoft Romania sent an official statement which said only the following: “Microsoft is committed to the highest legal and ethical standards wherever we do business, and we cooperate fully in any government inquiries.” While Eftene did not comment to the press when he was called to testify before the DNA, Romanian media reported that he was cited in the file in relation to the lease and extension of IT licenses for schools, for which approximately EUR 9 million was paid. Mihnea Costoiu, delegate minister for higher education, was questioned as a witness by the DNA, but made no statement to the media. The head of the Government’s General Secretariat, Ion Moraru, was also called to testify and presented some documents regarding the licenses, according to Mediafax newswire. The former head of the institution, Eugen Bejenariu, was quizzed by the DNA as part of the same case. Ioan Cordos, former state secretary in the Ministry of Communications, was also called to appear before the DNA. He told the media he had only testified as a witness and was not charged by the prosecutors, according to the same source. On July 10, the DNA announced that prosecutors were looking into the way the licenses had been leased, following notification from the prime minister’s control body on May 21, 2013. “The notification concerned the lease and extension of educational licenses by the Ministry for Information Society and the Ministry of National Education, which, contrary
Under the Micro-scope: Sorin Eftene, former interim GM of Microsoft Romania to the stipulations of agreement nr. 32/12.08.2009, and contrary to government decision nr. 460/2009, signed contracts to provide products. There are indications that approximately EUR 9 million, meant for educational purposes, was paid,” said the DNA, quoted by Mediafax. The investigation is looking into the lease of 179,259 licenses for ProDesktop packages and 6,828 licenses for Windows Server operating systems, covering all the work stations and servers acquired over 20012008 via the programs IT Educational System (SEI) 1 – SEI 5 and the rural program. The inquiry will also examine the contract based on which the Ministry for Information Society agreed the price for the total number of licenses, which exceeded the number of computers in the education system compatible with the new software products by 72,990. There are indications that the final price was approximately EUR 5.4 million higher than the licenses that could actually be used should have cost. The USD 105 million contract was implemented over 2004-2009. Prosecutors are also investigating whether government decision 460/2009 facilitated the subsequent
signing of a contract supplementing the number of licenses for schools, the acquisition of licenses for ProDesktop packages and Windows Server operating systems for education units according to their license needs, identifying the people involved and the way in which they checked the suitability of the software products. According to legal sources, quoted by Mediafax, DNA prosecutors are looking at three contracts for the IT licenses, in effect between 2001 and 2013. One is a Microsoft License Lease Contract of the Enterprise Agreement Subscription type, signed between the Romanian government and Microsoft Ireland via Fujitsu Siemens Computers (FSC) Austria GesmbH, worth USD 105 million, implemented over 2004-2009. The second is a Microsoft License Lease Contract of the type Enterprise Agreement Subscription signed between the Ministry for Information Society and the D-CON.NET consortium. The EUR 96 million contract was in force over 2009-2013. The third agreement covers the IT Educational System, and was signed between Siveco and the Ministry of Education for EUR 124 million. In May 2013, the government an-
nounced that it would notify the DNA of the alleged involvement of former ministers Daniel Funeriu and Valerian Vreme, who promoted a bill for the acquisition of educational software based on which EUR 8 million was paid without proper justification, EUR 5 million above the fair price. In July 2013, Microsoft Romania received EUR 5.06 million of state aid. The total project, which reached EUR 11.91 million, was meant to expand and diversify the support and client services division for Microsoft’s clients and partners and to create 200 jobs in Bucharest and Timisoara. The Romanian authorities are currently in final negotiations with Microsoft for the continuation of the technical support for Windows XP, and it remains to be seen whether the licenses will be leased or bought, announced Razvan Cotovelea, the minister for the information society, according to Mediafax. “The Romanian government decided that it would definitely negotiate and receive a fair price as long as it needs the service package. Microsoft cannot offer a very wide range of services on XP. We came up with a negotiation strategy and we are waiting for the final payment offers and the mechanisms via which we will make these payments. We are not excluding either of the two options, lease or purchase, as far as the Microsoft licenses are concerned,” said Cotovelea. The minister added that the contract would be “a highly transparent one” and Romania “will pay to the last cent, up to the last euro, only for what it needs.” Cotovelea said Romania had a serious problem regarding the Windows XP licenses because over 2009-2010, the financial crisis had prevented the state from buying new computers. “A new computer uses another OS so currently, after four years, we have a very outdated IT infrastructure, with licenses that are no longer in production and for which the producer no longer commits to finance technical support,” said the minister. otilia.haraga@business-review.ro
www.business-review.eu Business Review | July 21 - 27, 2014
WHO’S 5
TAX
WHO’S NEWS
Firms fear tax hikes after potential cut in labor tax
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
R
Companies brace for new tax rises Mihail Marcu, president of Romanian Business Leaders, an association promoting entrepreneurship in Romania, said the proposed reduction of CAS
Valeriu Binig
Courtesy of Presidency.ro
epresentatives of the business environment have welcomed the government’s intention to cut the social insurance contributions (CAS) paid by employers by 5 percentage points, but fear that new tax hikes could be rolled out to plug the resulting budgetary shortfall. The reduction of the CAS was approved by Parliament in July and was sent to President Traian Basescu for rubberstamping. The president, however, asked for an impact study for this measure, and summoned Prime Minister Victor Ponta to an official meeting last week. The sit down took place behind closed doors and the prime minister was joined by Ioana Petrescu, minister of finance. Details of the discussion were published by the presidency shortly after the meeting. They showed that neither PM Ponta nor Petrescu could say clearly how the government was going to make up the shortfall from the reduction of CAS. Petrescu later defended her position, arguing that the reduction of CAS had been dragged into a political conflict, which was why she had not provided any information. She added that the International Monetary Fund had got these details one month earlier. The reduction of the CAS has not been given the go ahead by the IMF, which wanted to see the clear streamlines of revenue to compensate for any gap in revenues so that the public deficit does not widen. Cutting the CAS would create an estimated loss of RON 850 million (EUR 191 million) in the last quarter of this year, assuming the measure is approved in October. Next year, it amounts to RON 4.8 billion (EUR 1 billion). PM Ponta said that the reduction of CAS was covered from a purely accounting perspective through the additional revenue from the fuel excise, the special construction tax and higher collection of taxes from the approval of a new Insolvency Code. The revenue from the EUR 0.7 fuel excise was initially supposed to go into a special fund for the development of roads and highways. The fuel excise has also hurt the sales of oil companies and subsequent revenues to the budget. Azamat Zhangulov, senior vice-president of oil company KMG International, told BR in an interview earlier July that its sales had dropped 11 percent yearon-year in April because of the fuel excise.
PM Ponta was summoned last week would be “the best economic measure undertaken in recent years.” Meanwhile, Felix Patrascanu, managing director of delivery firm FAN Courier, argues that Romania’s labor tax burden is disproportionately higher compared to other taxes. He said that a lot of people in Romania work in the informal or black labor market, which disadvantages fair-dealing companies. According to Romulus Badea, tax partner at tax consultancy Soter & Partners, this reduction alone will not shrink the informal labor market, adding that a whole package of measures would be needed, such as the lowering of caps on social security contributions. “You cannot have unlimited contributions and limited services,” Badea told BR. Patrascanu said he had discussed with his business associates granting all employees a 5 percent raise, provided that the cut in CAS is passed. FAN Courier has around 2,700 employees in Romania, out of whom 1,200 are couriers. “The bad part is that it has been overly politicized and this could hinder the chances of its application from October,” Patrascanu told BR. PM Ponta said the reduction could be rolled out next year if the president decides to challenge it at the Constitutional Court. “In the sarabande of the increase of taxes (special construction tax, new fuel excises) the 5 percentage point reduction would have provided a breath of oxygen for companies,” said Patrascanu. “But I am afraid that all the potential gaps from the (e.n. reduction) of the CAS could bring other tax hikes.” Dragos Anastasiu, president of Eurolines, the transport and tourism group, agreed and said that he would use the additional funds from the tax cut for development and investments. ∫ Ovidiu Posirca
has joined EY Romania as a partner in the advisory services practice, where he will be focusing on the energy industry. In this capacity he will be responsible for expanding the firm’s market share, client portfolio and range of services. Binig is a specialist in the local energy market, with 27 years of professional experience in the industry. He has held various positions, ranging from power plant operation engineer, designer, researcher, lecturer, coordinator of Phare programs, European Commission delegation task manager and utility company manager to consultant in investment banking/financial advisory services. Before joining the company, Binig had spent over six years working for other consultancy firms.
Tudor Botea
has joined Wolf Theiss after having worked for the international law firm CMS Cameron Mckenna SCA for the past four years. He is a graduate of the Law Faculty at the University of Bucharest and has been a member of the Bucharest Bar since 2011. Botea has been involved in various financing and restructuring deals, both internal and cross border. Over the years he has advised banks and international financial institutions as well as their clients.
Viorel Cerchez
has joined Euro Insol, the judicial administrator of stateowned hydroelectricity producer Hidroelectrica, as director of the company’s acquisitions and logistics direction. He previously spent five years as acquisitions director of Tiriac Holdings. Between 2005 and 2007 he was acquisitions director of Hewlett Packard, Bucharest & Geneva, and then strategy and acquisitions director through to 2009. Cerchez was previously acquisitions manager at Chubb Ireland Group, a UTC Corporation Group Company, which
makes high technology products. The new Hidroelectrica director holds an accreditation from the Chartered Institute of Purchasing and Supply.
Stephen James Orlesky
is the new CEO of the Romanian International Bank (RIB) after the National Bank of Romania approved the appointment. The bank’s management team will also include Ana Elena Cernat, Mioara Popescu and Radu Vasilescu who have been appointed executive vice-presidents. Orlesky has over 20 years of experience in the banking field and has previously worked for Berlarusian Bank (part of Getin Holding Poland) and prior to that for the Royal Bank of Canada, according to local media.
Razvan Popescu
is the new nearshore business manager at Alten Romania where he will be responsible for the recruitment and creation of the technical specialist teams, which will deliver services to clients across the border. Popescu has over seven years of experience in the IT industry. He started his career as a web developer and later became an entrepreneur. Before joining the company he worked for Oracle as business development representative covering Central and Eastern Europe.
Perry Zizzi
has returned to Dentons as partner and head of the law firm’s Bucharest banking & finance group. He has nearly 19 years of experience practicing law in the US, Latin America, Western Europe and the emerging markets of Central and Eastern Europe. Over the years he has advised on numerous real estate development, financing, acquisition and leasing transactions with a special focus on finance. Zizzi returns to the firm nearly seven years since leaving Salans (as it was then known). At that time he was a partner.
www.business-review.eu Business Review | July 21 - 27, 2014
6 FOCUS
Local utility firms’ malaise and litigation to hit Enel sale Energy experts say the utility firms that are already established in Romania might have limited appetite to buy the electricity and distribution arms of Enel as the deal would entail anti-trust risks. Enel’s ongoing litigation with the state regarding the breach of privatization terms for Electrica subsidiaries, for which the state is claiming around EUR 900 million in damages, could further delay the closing of the transaction, say experts. ∫ OVIDIU POSIRCA The sale announcement did not surprise energy delegate minister Razvan Nicolescu, who said the Romanian state was looking to make sure that all the objectives assumed by the company under the privatization contract would be fully respected going forward. Enel entered Romania in 2005, alongside German E.On, Czech CEZ and French GDF Suez. At that time, the government sold controlling stakes in several divisions of Electrica, the supplier and distributor of electricity, and Distrigaz, the gas supplier and distributor. Enel bought the majority stakes in three Electrica divisions and three
years later took over Bucharest’s electricity supply, which gave it a market share of around 30 percent in the distribution sector. The firm reported a turnover of about EUR 1 billion from these operations last year, while its EBITDA stood at EUR 289 million. Business daily Ziarul Financial quoted energy consultant Sorin Elisei as saying that the “fair price” for Enel’s assets would stand at around EUR 1-1.5 billion. In the meantime, the company has also invested heavily in the renewable energy through its specialized division Enel Green Power. Its local portfolio comprised 498MW in wind and another 36MW in solar installations at the end of last year. The company has not put this portfolio up for sale.
Speculation surrounding exit The sale announcement came amid an anti-corruption investigation into Enel, which led to the arrest to one of its directors. Prosecutors at the National Anticorruption Directorate (DNA) claimed that the firm doubled the tax for green certificates levied in 2012 for consumers in the Enel Distributie Muntenia subsidiary. Energy regulator ANRE discovered the move and asked Enel to reduce its supply tariff by 6 percent. However, the regulator’s vice-president, Claudiu Dumbraveanu, told Enel director Florin Gugu the firm could lower the tariff only by 1.3 percent, provided the company granted some infrastructure works to ElectroAlfa International, a company controlled by Romanian
businessperson Gheorghe Ciubotaru. Prosecutors said this option would have saved Enel EUR 2.5 million. The firm said it was fully cooperating with authorities on the case. The media has speculated that this could have been one of the triggers of Enel’s decision to exit Romania. Another relates to the failure to meet investment targets included in the privatization program. Electrica is currently battling Enel, CEZ and E.On at the Arbitrage Court in Paris, alleging that they did not fulfill their investment obligations. A report by the Romanian Court of Accounts, the institution tasked with overseeing public spending, found that these companies had not invested their own money in modernizing Electrica’s subsidiaries, but
Source: Enel
www.business-review.eu Business Review | July 21 - 27, 2014
FOCUS 7
instead used revenues generated by these subsidiaries, according to news portal gandul.info. The state is aiming to recover around EUR 1 billion the amount invested by Enel in Romania from the trio, according to media since entering the country in 2005 reports. “Concerning our investments in the Romanian network, please note that the levels of investment agreed within “honest dialogue” with the governthe privatization contract framework, ment to find a good solution for both on all three distribution companies sides. Aside from Romania, Enel is (Banat, Dobrogea and Muntenia Sud), also looking to sell its generation ashave been fulfilled and even exceeded. sets in Slovakia, where it controls the Enel has invested around EUR 1.9 bil- country’s biggest electricity producer. lion in Romania since 2005, connec- Last year, the Slovak operations retion fees excluded,” a spokesperson ported revenues of EUR 2.8 billion and EBITDA of EUR 708 million. for the Enel Group told BR. Enel, which is one of Europe’s most The Italian company already won one ruling, in late 2013, against Elec- indebted utilities, aims to raise EUR trica, which had asked for EUR 44 mil- 4.4 billion from selling its operations lion in damages for the breach of in Romania and Slovakia, along with privatization terms for Electrica Banat other non-strategic assets, under its debt reduction plan. The company has and Dobrogea. Electrica is seeking EUR 834 mil- already cut its debt by EUR 1.6 billion lion and RON 378 million (EUR 85 mil- to date under the EUR 6 billion debut lion) in compensation from Enel for reduction program. Overall Enel rebreaching privatization terms for Elec- duced last year’s debt by EUR 3 billion trica Muntenia Sud, according to data to EUR 39.9 billion at the end of 2013. provided in late 2013 by the Depart- Its net profits were up 10 percent to ment of Energy following a request by EUR 3.12 billion in the same period. Citigroup and UniCredit have been an MP. Energy experts commented that appointed financial advisors for the the ongoing litigation could further sale process in Romania. “The revision of portfolios is a condelay the closing of the transaction. According to news portal hot- stant process for multinationals. The news.ro, Enel was supposed to buy recent history of the reassessment of another stake of 13.57 percent in Elec- investments leads more to changes in trica Muntenia Sud from Electrica, assets than new investments of tradiwhich used its sale option. The gov- tional assets that are vertically inteernment had established a sale price grated,” said one energy analyst, who of EUR 521 million and the deal should declined to be named. “Enel has also have been closed by the end of 2012. recently had reputational issues However, it collapsed due to contrac- which have probably motivated/eased tual disagreements. The government the decision. There is probably an had passed a memorandum in March enhanced risk in the regulated 2013 in a bid to push the deal forward, area, which has a big share in this but no agreement has been reached to portfolio.” Meanwhile, Robert Ghelasi, mandate. Enel representatives told hotnews.ro they were engaged in an aging partner of Energie Finanzierung und Kapital (EFK), which specializes in investment banking services for the energy sector, said Enel’s exit decision was “surprising” given that it had a business that was extremely liquid and profitable. He put it down to the deleveraging process pursued by the group. Enel has a regulated return rate of 8.52 percent for the third regulatory period running through to 2018, approved by ANRE in October 2013. of Enel Distributie Muntenia and Enel There is an additional premium of 0.5 Energie Muntenia percent for investments in smart meters.
EUR 1.9 bln
Enel’s local ‘for sale’ list
64.4 % 51 %
of Enel Distributie Banat, Enel Distributie Dobrogea, Enel Energie
100 % of Enel Romania, the services company held through Enel Investment Holding
Potential buyers According to media reports, Enel is currently in negotiations with China’s biggest utility firm State Grid Corporation. This would allow China to gain a toehold in Romania’s energy sector and would fit a wider government strategy to attract Chinese capital to the energy sector. The authorities are trying to convince Chinese companies to invest in large energy infrastructure projects, such as the two nuclear reactors at
Cernavoda and the hydro pumped storage plant at Tarnita, which require combined investments of over EUR 7.5 billion. In late 2013, Enel exited the consortium comprising private energy groups and state-owned nuclear producer Nuclerelectrica that aimed to build them. Companies said the deal had collapsed because nothing was happening with the project from the state’s side. Another company that it is rumored could buy Enel’s operations is German RWE. The group recently opened a subsidiary in Romania and said it was looking to gain market share in supplying energy to industrial consumers. BR asked the head office of RWE to comment on its potential involvement in the transaction with Enel, but had not received any answer by the time the magazine went to print. “E.On and CEZ are in the same position of exiting some markets,” commented Bogdan Iliescu, corporate finance director at BRD Groupe Societe Generale. He said these companies have invested a lot in Romania and they are not in acquisition mood at the moment. For instance, E.On exited neighboring Bulgaria in 2012. “It is a pretty big transaction and I do not think they have the appetite at the moment,” said Iliescu. BR has asked CEZ for comment on their potential involvement in the acquisition of Enel’s assets, but had not received a response by press time. GDF Suez declined to comment. Energy experts told BR that out of the three foreign utilities that are active locally, only GDF Suez would not risk an anti-trust investigation if it was considering buying Enel’s operations. “The most interested is, I think, GDF Suez because it has been present in Romania for many years, it knows the local market very well, it has good capitalization and liquidity and the most important fact is that unlike CEZ and E.On it is present only in gas distribution, lacking the distribution and supply of electricity,” said Ghelasi of EFK. Ghelasi of EFK added that GDF Suez has two wind farms in Romania with around 100MW in installed capacity, and taking over Enel’s operations would allow it to buy the green certificates from these farms and sell them to final consumers. He commented that Enel’s distribution business is attractive because it is located in areas where consumers’ purchasing power is greatest (Banat, Muntenia, Dobrogea). Electrica, which is a minority shareholder in all Enel’s operations, has the right to buy its assets first (preemption right) and has been mulling it over, according to news portal hotnews.ro, which quotes market sources. The Property Fund, the EUR 3.5 billion closed-end fund managed by Franklin Templeton, is the other minority shareholder in Enel’s
distribution assets. Iliescu of BRD said that any potential acquisition depends on Electrica’s development plan. The company is set to appoint a new board in September, following its privatization in June. Electrica raised EUR 444 million from selling a 51 percent stake on the Bucharest Stock Exchange (BVB). The company said that all the privatization funds would be used to upgrade the distribution segment in the coming years. The minority stakes of Electrica in the energy companies controlled by private players were moved in April to the Company for the Administration of Energy Stakes (SAPE) by the Department for Energy. The Electrica listing did not include these minority stakes. Iliescu added that Electrica’s intention to buy Enel’s assets could raise anti-trust risks, because the company already holds a 30 percent market share in the electricity supply sector.
Renewable gets left out Enel has decided to keep its renewable operations in Romania, even though the market environment has worsened in the past year. The government has changed the incentives for renewable producers and is looking to partially exempt big industrial consumers from acquiring green certificates, the main revenue stream for renewable producers. According to market sources, wind producers are currently selling one green certificate for the minimum regulated price of EUR 29 and one MW of electricity for EUR 30. This is insufficient to cover their investment, and some of the smaller players risk going into insolvency, according to energy experts. Energy experts commented that Enel will have to deal in the renewable sector with a legislation that is constantly changing and unpredictable. Ghelasi of EFK suggested that Enel is not selling its renewable division in Romania because the assets (mainly wind and solar) are currently trading at very low prices owing to the legal changes that have a direct impact on cash flows. “At present the evaluation of wind and solar farms is linked solely to the future revenue generated by the sale of electricity, while revenue from the sale of green certificates is taken into account only marginally or not at all. So the offers are currently at cost price or even lower,” said Ghelasi. He commented that Enel, as an owner of renewable assets, is first waiting for the market to stabilize and might consider an exit if it gets a certain yield. Ghelasi pointed out that there are voices in the market claiming any generating assets will be in high demand in the near future, given Europe’s intention to wean itself off Russian energy imports. ovidiu.posirca@business-review.ro
www.business-review.eu Business Review | July 21 - 27, 2014
8 INTERVIEW
Marriott sees more room for local expansion JW Marriott Bucharest Grand Hotel is getting ready to renovate all of its 402 rooms from next year, Igael Porecki, the hotel’s general manager, told BR. At the same time, the Marriott group is looking to expand its local footprint by opening several Courtyard units over the coming years, BR heard. ∫ SIMONA BAZAVAN How did the market for four- and fivestar hotels in Bucharest evolve in the first half of the year and what is your forecast for the next period? What we’re seeing in 2014 is that the Bucharest market is growing. I am talking about a 2, 3 percent growth which is not a lot, but it is a good sign. I came here in 2009 in the middle of the economic crisis, which I cannot say is over – it is still not over – but we can see that 2014 is an improvement on what we forecasted. And this is a good sign that the economy is somehow starting to get better. What we haven’t seen yet is rates going up. Occupancy is going up but not rates. We expect the growth to continue in 2015 as well – 1 or 2 percent above this year.
Is Bucharest a city-break destination for foreign tourists? The only tourists that I can really say come for the weekend are Israeli tourists. They come to shop because Bucharest has a wide variety of big shopping malls with a lot of international brands and the prices are competitive, and they come to use the casino. This is what I see from the Israeli market. I don’t see German or British or French tourists taking a plane on Friday to come here for the weekend. I don’t see this happening yet, but it will hap-
July 2009-present – general manager of JW Marriott Bucharest Grand Hotel September 2002-June 2009 – general manager of Tbilisi Marriott and Courtyard by Tbilisi Marriott May-September 2002 – resident manager of the Warsaw Marriott Hotel 1989-2002 – general manager of the Renaissance Tel Aviv Hotel 1984-1988 – director of sales & rooms division at Renaissance Tel Aviv 1976-1984 – front office & reservations manager at Renaissance Tel Aviv 1973-1975 – front office shift leader, Grand Beach Hotel Tel Aviv
pen. I think the city and the mayor have done a lot. The old city looks amazing. It is packed every evening and even earlier. However, the city needs a little bit more advertising, more promotion. I know that there are five-year plans from the municipality to develop more tourist attractions. Also, international artists that come to Bucharest need a bit more promotion. For example, Leonard Cohen. He was in Tel Aviv and in Bucharest as part of the same tour. In Israel tickets were expensive and hard to come by. A couple of hundred Israelis came for the weekend in Bucharest just for his concert. What local destinations would you recommend to a foreign tourist staying in Bucharest? First of all, I would recommend the Parliament Palace. It is a landmark for Europe, not only for Romania, and it is just across the street from us. I’ve been there many times with friends visiting
me. Secondly, in the evening during the summertime I would tell them to go to the old city, and there is also the openair Village Museum. Because the capital is close to Sinaia and Peles Castle and a bit further there is Bran Castle, I would also advise them to go and see these places. They could go in the morning and return in the evening. Especially if they are staying over the weekend, I would advise them to rent a car and go Sinaia, Brasov and Bran. What about the contribution of business travel? The corporate segment is growing. Not by very much, but it is growing. More companies are now based in Bucharest or are opening local offices and recruiting people. Another market that was popular in Romania before the crisis and is now returning is film productions. Local studios are well equipped and cheaper. There is new demand coming from film production companies and in
Photo: Mihai Constantineanu
Where is this growth coming from? The leisure segment has been going up a little bit. We are a business hotel – I would say 90 percent of our guests are businesspeople – but what we can see this year is that more cruise lines are entering the market, coming mainly from the US and other Anglo-Saxon countries. The Israeli market is also one of our strongest markets. Israeli tourists come here for a couple of reasons. First of all, there is the casino at the weekend. And when I say the weekend, this it is exactly the time when the city needs business. They also come to shop. You can see more ElAl, Tarom and Wizz Air flights and recently I have also seen Blue Air entering the market with a charter flight to Israel. But overall, the growth is coming equally from leisure and business. And the ratio between the two has been relatively stable.
CV Igael Porecki
this regard Romania is competing with Budapest and I think also with Prague. Are things improving on the MICE (meetings, incentives, conferences and events) segment? The potential is definitely huge. I said this from the very first time I arrived in Bucharest – why doesn’t the city have a world conference center? There is no reason why Bucharest should not host conferences for 2,000 people. I’m not talking about conferences for 5,00010,000 participants like in Las Vegas; we will never be able to do that. But conferences of 1,000 people and above, 2,000 people – that could happen. I think that the city has enough rooms in three, four- and five-star hotels to accommodate such conferences, but we don’t have the venues. The only one for 1,000 people is the Parliament Palace but it is not enough. So, infrastructure is a problem. This is where the authorities, the municipality, should work. It takes
www.business-review.eu Business Review | July 21 - 27, 2014 three-five years to build such a conference center and it could change Bucharest’s occupancy dramatically. Two, three big conferences per year and smaller ones of fewer than 500 people would change the city dramatically and I’m not referring only to hotels. From taxi drivers to restaurants and retail, everyone would benefit. People would come to Bucharest for such events. You’ve mentioned rates not picking up. When could this happen? The moment the occupancy rates in the entire city exceed 70-73 percent, the hotels will be more confident in raising rates. Until we reach that range, the supply will continue to be higher than the demand. Last year the average yearly occupancy for Bucharest was around 65-66 percent. This year it will be one or two percent higher. In order to bring up the rates we need the average yearly occupancy to reach 73-75 percent. Of course, there are peaks as was the case in May, and June was a very good month as well. But if you take 365 days, there aren’t that many days in a year when everything in the city is sold out. There are 20-30 days per year when we are sold out but this is not much. There should be a minimum 100 such days per year and then we will feel more comfortable about raising rates. What are your objectives this year and have you planned any investments?
INTERVIEW 9 First of all, we have an obligation to our brand and that is why we invest in maintenance. We are a JW Marriott and we need to make sure that the hotel always looks sharp. And this is a very big hotel. Last year we invested EUR 1.2 million in renovating the lobby and the reception. This has always been our philosophy. Even when the economy is not at its best we will look ahead and always invest in our product. Two years ago we did the meeting rooms, and before that the grand ballroom. We have a big plan for 2015 – we want to renovate all of our 402 rooms and the executive lounge. It will start in January next year and it will take approximately two and a half years because we will not be displacing business. We will do it floor by floor, area by area, and in out-of-season periods so that we don’t displace business. I can’t tell you the actual investment yet because we first need to do two mock-up rooms, with the two options presented by the designer, choose one and then multiply everything by 402. We will have the actual figure over the next period. What was the hotel’s turnover and revenue structure last year? I can’t tell you the actual figure, but it was stable. We are a very big hotel with a lot of food and beverage (F&B) facilities which is unusual compared to the rest of the
market. Just to give you an idea, in most of the hotels in the world there is a 70:30 ratio between the revenue generated by rooms and the revenue from F&B. Because we are a big hotel and have six restaurants, revenues from F&B have a larger share for us. It can reach between 40 and 45 percent. And the rest comes from the rooms. It is a healthy ratio. What we are focusing a lot on at present is organizing conferences, because they generate revenues both from accommodation and from F&B. We have excellent facilities for such events and we can also rent space in the Parliament Palace for larger conferences. We do this through our general sales offices all over Europe which are visiting companies and MICE organizers, and there is demand from abroad. How important is the local business to Marriott International? I can tell you that there are plans to develop more hotels in Romania. We have a developing department in Zurich and there are a couple of projects they are looking at. Nothing has been announced so far because they are in the stage of buying the land and so on. But Marriott is very keen to grow in Romania. The next hotel would not be another JW Marriott. We are looking to expand with the Courtyard by Marriott brand which is a very strong brand. We are looking at a Courtyard in Bucharest as well in secondary cities like
Timisoara, Arad or Sibiu. I can’t tell you with certainty when they will be opened, but there is interest at group level. I think in a couple of years. From the moment one decides to build a hotel to the moment it opens its doors, it takes between four and five years. Investors are looking long term. In the five years you’ve been managing the hotel, what were the greatest challenges you’ve faced and what was the greatest achievement? I don’t think that there have been many challenges. A few years back the infrastructure was a problem, but things have improved a lot. Following all the road infrastructure works in recent years our guests can now leave for the airport one hour in advance and not two hours as they had to before. The infrastructure used to be a challenge also because many of our guests had their offices in the north of the city. A lot of corporate business is coming back now because of the easier access and the time saved. Works done on the airport have also been a very good thing. As for the achievement, it is when I’m satisfied with the results and the company, and the shareholders and my associates are as well. To read the full interview, visit www.business-review.eu. simona.bazavan@business-review.ro
www.business-review.eu Business Review | July 21 - 27, 2014
10 LINKS
Hub:Raum to intensify local activities Hub:Raum, the business incubator and accelerator of Deutsche Telekom, is receiving application from Romanian startups and has already granted financing to one venture. However, Cosmin Ochisor, liaison manager at Hub:raum Krakow, tells BR that the best is yet to come, as the program is about to become more active locally. ∫ OTILIA HARAGA “Startups from Romania are 20-30 percent of our deal flow from the 12 European countries we cover. But more importantly, the quality that we’re seeing is amazing. So you can say that it’s no accident that one of our first investments is a startup from Sibiu: Omnipaste. We are also planning to intensify our activities in Romania even more in the following months,” Ochisor tells BR. Hub:Raum, which attended this year’s Techsylvania event in Cluj, has a strong presence in Romania, he says, thanks to “local connections” such as the How to Web MVP academy, a preacceleration program for technological startups in CEE, and TechHub Bucharest, a community and workspace for tech entrepreneurs, and also has support from local telecom player Romtelecom, in which Deutsche Telekom (DT) is a shareholder. The startups in the Hub:Raum program receive EUR 80,000 in funding in exchange for 10-20 percent of equity, but Ochisor says there are other major perks apart from the money. “Hub:raum Krakow (ed. note: the Eastern European arm of the program)
Cosmin Ochisor liaison manager of Hub:raum Krakow provides market access to customers in 12 European countries. The DT Group has approximately 180 million customers and, after the pilot, the potential for growth here is quite something. In addition, teams are provided with everything they need: special offers from our partners, eg, EUR 5,000 in
Amazon services, Cisco support), access to all of DT’s experts in any field and a vast network of mentors – in essence what we call ‘corporate leverage,’” says Ochisor. So far, Hub:Raum has had two local acceleration programs, and 5 out of the 25 teams that were invited were from Romania. “It ended up with one investment and possibly more in the future,” said the liaison manager. He said that Omnipaste, which was selected at the end of last year, started off “with preseed investment that will be followed by seed agreement very shortly.” Omnipaste received EUR 80,000 of financing, but also the benefits that Hub:Raum usually offers its selected startups. “They include market access to a lot of customers, help getting traction and validation, any kind of expertise they might require (legal, financial, technical) and a great pool of mentors and connections through Deutsche Telekom,” says Ochisor. He adds that the key point for an incubator and accelerator program is to approach each country individually. “It might sound like a cliché, but areas that are geographically close can have completely different market approaches, customs and business prac-
tices. It’s not possible to make one universal strategy and force it onto a diverse area like CEE. (…) We believe that using the experience from other more mature markets and applying local flavor is the right approach to the problem,” says Ochisor. Taking an X-ray of the region and entrepreneurial spirit in Romania, Ochisor says that Eastern Europe is “waking up” and “entrepreneurship is growing at an amazing rate every year.” “Countries like Romania, Poland and Croatia are showing that they indeed have something to show and that in a relatively short time things will get much more interesting. The technical talent pool is something that is often ignored. But they are still suffering from low self-esteem and thinking locally.” He concludes that the signals on the market are positive. “The ideas that we’re seeing at ground level are positively surprising. On the business side, we still have a long way to go when comparing the situation to the West (the rest of Europe and the US). But I see that this has been recognized so we hope it will change soon if we constantly work on it.” otilia.haraga@business-review.ro
Twitter developer advocate: site reflects ‘pulse of the planet’ In Cluj for the Techsylvania event, Andy Piper, developer advocate at Twitter UK, tells BR how he was recruited and what working for the micro-blogging site is like. The interview process was “quick and decisive,” he says. “After one or two conversations with the team leaders, I “I’m a developer advocate with the Twit- was interviewed at the London office to ter developer and platform relations assess my technical knowledge, culteam. Our team is focused on helping tural fit and industry understanding,” developer and API (application pro- he says. When asked by Business Review gramming interface) partners build successful Twitter integrations and tools,” about the projects he has worked on so Piper, who was a speaker at the Techsyl- far, Piper says they have been “slightly less ‘visible’ than changes or projects vania event in Cluj-Napoca, tells BR. He joined Twitter over two months you may have seen externally.” “This is because the developer relaago, following a recruitment process that started in February. “I was con- tions team works on programming APIs tacted directly by the global head of de- and documentation more than we developer relations, as they were looking liver big new features to the Twitter for someone with a strong background web or mobile clients,” he explains. One thing the team worked on was in the technical community across Europe, and who was known as a public the ability to “mute people” a user folspeaker but with hands-on technical lows temporarily. “This means that you will not see tweets in your timeline credentials,” says Piper.
∫ OTILIA HARAGA
until you un-mute the user, without having to un-follow them. I spent a lot of time testing the technical implementation of the feature, and worked on the documentation that enabled our thirdparty ecosystem partners to integrate it into their libraries and applications,” he says. “More recently I’ve been privileged to work with a couple of startups on such things as mapping flood plains, with Twitter used for alerts; and a new restaurant recommendation mobile app based on Twitter conversations. These are both amazing examples of how Twitter can be used to connect people to things they are interested in, and how it reflects the ‘pulse of the planet’ – exactly the kinds of new technology experiences I am most excited about as part of this team,” says the de-
veloper advocate. However, he says his role is a diverse one, which includes working with developer communities. “I get involved in forums and online technical discussions where developers need support, and we are responsible for providing good quality documentation and samples to the community. Another very important part of the team’s role is to work directly with startups and established partners building integrations with Twitter, for example with our Twitter Cards technology. (…) I’ve always been passionate about enabling developer communities around different technologies, and I’ve been a Twitter user and fan myself since 2007, so this is a natural fit for me!,” he says. otilia.haraga@business-review.ro
www.business-review.eu Business Review | July 21 - 27, 2014
RESTAURANT 11
Oodles of noodles: Old City Living the high life: restaurants with a sky view Center gets Japanese eatery On hot days, the easiest escape from the bustle and noise of the city may be to head upwards. BR has sought out the capital’s best high-rise restaurants, for both locals and tourists. ∫ OANA VASILIU MNAC Terrace Address: 2-4 Izvor Street / Palatul Parlamentului, E4 wing, entrance through Calea 13 Septembrie, fourth floor Opening hours: Wed-Sun, 10:00-18:00, sometimes open until late Though often dubbed a monstrosity and a monument to Ceausescu’s megalomania, the People’s Palace has its assets, one of which is a cafe-terrace for visitors to the National Museum of Contemporary Art. Unfortunately the better (city center) views are from the other side of the building – here you can see a palace garden and the construction of the Romanian People’s Salvation Cathedral – but by night the cityscape comes into its own. Enjoy the spectacle and ambience with a lemonade, coffee or beer.
For an elevated view near Victoriei Square, this is the place to come, even if the sights are mostly apartment buildings. The menu, which promises both international and Mediterranean food, gets mixed reviews. Order a coffee – or something stronger – and enjoy the sunset. 18 Lounge by Embassy Address: 3-5 Presei Libere Square, City Gate South Tower, 18th floor Opening hours: Mon-Sun, 12:00-24:00 Looking out over the Arch of Triumph, Casin Monastery, Herastrau Park and Lake and Kiseleff Boulevard, 18 Lounge is part of the popular Embassy restaurant chain. With modern European dishes and a fine liquor menu to boot, this is a good choice for a classy evening. Sky Bar Address: 155 Calea Dorobanti, fifth floor Opening hours: Mon-Sun, 10:00-02:00 A green and light space, Skybar is popular both for business meetings, and for
Silk Panoramic Address: 4 Nistor Ion Street, behind Bucharest Museum, ninth floor Opening hours: Mon-Sun, 11:00-23:00 Hosted by the Z Boutique Hotel, the restaurant looks out over Universitatii Square and a clutch of major central landmarks: the National Theater, Intercontinental Hotel, Coltea Hospital and the University. On the other side is a great perspective over the People’s House, which is the cherry on the cake. The chef is Sicilian, so expect to taste fresh and authentic Italian creations such as Tagliata di tonno e sesamo and Tiramisu all’arancia. Tip: the place is very quiet in the morning. Allhambra Address: 16 Splaiul Unirii, SIF Muntenia Building, 10th floor Opening hours: Mon-Sun, 12:00-12:00 Bucharest may not boast a Seine, Rhine or a Thames, but the Dambovita River, on view from this restaurant, still makes for a pretty backdrop. A live band and dance floor add to the jollity, and the meat and seafood are the menu’s fortes. It’s a popular wedding venue, so best to check it’s open to the public before setting out. AstroDom Address: 33 Alexandru Constantinescu Street, Residence Hotel, fifth floor Considered the most romantic sky restaurant in Bucharest, the terrace has an extraordinary view over the verdant north of the city. It won’t be a cheap date: wine runs from RON 85 to several hundred RON, while Don Perignon champagne will set you back RON 1,090. Starters are priced at RON 16-39, salads RON 24-35 and mains can exceed RON 100. However, the money also buys you the view, which is amazing, especially at sunset. oana.vasiliu@business-review.ro
Courtesy of Samurai Restaurant
Sole Address: 48 Iancu de Hunedoara Blvd., 15th floor Opening hours: Mon-Sun, 18:00-24:00
relaxation and escape from the city bustle. The specially designed roof can be completely closed to protect guests from rain, wind or snow, but when opened it offers a superb view of the sky – as the name suggests. Spinach risotto (RON 25), parmesan and wood shrimps (RON 50) and chocolate mousse with seasonal fruits and mascarpone (RON 20) are menu musts.
Way of the Samurai: chefs are specialized in sushi and ramen
∫ OANA VASILIU Businessman Hideaki Tanaka last week opened the traditional Samurai Japanese restaurant on Selari Street. The inauguration party was EUR 10,000. The authentic tastes are provided by sushi specialist Chef Suenaga and Chef Tanimura, specialized in ramen, both of whom have more than ten years of culinary experience. “Washoku”, traditional Japanese cuisine, has recently earned international recognition from UNESCO, having been declared an Intangible Cultural Heritage, one of the reasons why Samurai Restaurant was opened in Old City Center, with a menu based on exclusive products brought directly from Japan. Currently, the restaurant is the only one in the country serving the Japanese soup ramen (RON 20-25) and the Japanese pizza okonomiyaki (RON 1520). Yakisoba noodles and teppanyakistyle cooking also feature. Ramen is a very popular noodle dish in Japan,
consisting of boiled noodles served in different flavored soup with many toppings. The taste mainly depends on the soup, the making of which requires some skills. Okonomiyaki, sometimes translated into English as “as-you-like-it pancake”, is a popular pan-fried food that consists of batter and cabbage. Selected toppings and ingredients are added, which can vary greatly (anything from meat and seafood to wasabi and cheese). This variability is reflected in the dish’s name: “okonomi” literally means “to one’s liking”. Yakisoba is a kind of Japanese fried noodle, mostly stir-fried with meat and vegetables, while teppanyakistyle cooking involves a performance by dexterous chefs who cook your food in front of you, using their theatrical skills, juggling, flipping and with a dash of fire. Tuna, salmon, bream, shrimp and Yaki salmon sushi are all on the menu, at prices from RON 7 to RON 10. oana.vasiliu@business-review.ro
www.business-review.eu Business Review | July 21 - 27, 2014
12 WELLNESS
Pretty interesting: businesswomen share health and beauty tips Last week, Business Review organized an informal summery gathering where attendees could get tips on how to cultivate beauty inside and out from two successful Romanian entrepreneurs: Rucsandra Hurezeanu, founder and general director of Ivatherm and Camelia Sucu, owner of Iconic Health Concept, also the host of the event.
Al photos: Mihai Constantineanu
An attractive proposition: cultivating beauty from within with local businesswomen at an al fresco rendez-vous
OANA VASILIU Beautiful inside … Free-flowing conversation and a cool breeze in the shade of one of Bucharest’s hidden gardens, Iconic Food Wine & Design, were the secret ingredients of this lesson in beauty. In 2012, Sucu started to offer a detox program, which has been tried and tested in detox centers all over the world. “A harmonious lifestyle means balanced nutrition, exercise and a detox program at least two or three times a year. My personal belief is that we can have a good life if we want it and if we know how to take care of ourselves, and I’m really happy that clients who have started the Iconic Health program can see the benefits and do the program once or twice a year,” said Sucu in her opening address. At Iconic, Sucu offers a wide variety of detox plans and products, from healthy juices to colonic hydrotherapy recommendations and even postdetox menus. Prepared in
cooperation with nutritionists and doctors, Iconic Juices are 100 percent natural drinks made from unique recipes and at optimal dosage, she said. The secret of these detox juices, according to the entrepreneur, is the type of squeezing, using cold pressure, not spin, in order to keep all the nutrients intact. During the program, followers have six meals per day: four raw juices, a salad and vegetable soup. The programs on offer include basic detox, with four natural juices per day, a salad, a protein supplement made of quinoa or tofu and a soup; advanced detox, which can be done over five, seven or ten days with six meals per day, very similar to basic detox; and master detox, recommended for three or five days, containing only five natural juices, vegetal milk and soup. Detox prices run from RON 600 - 1,200 for the basic program, RON 550 - 1,100 for advanced and RON 350 - 550 for the master regime. The menu should be complemented by a holistic approach that in-
volves colonic hydrotherapy, lymphatic drainage and other procedures to attain various objectives: the rapid loss of excess weight, extra energy and general toning.
…glamorous outside Innovation and efficiency in antiaging therapy was the topic that Rucsandra Hurezeanu chose to discuss with the women invited to the event. Coming from a family of medics, Hurezeanu followed suit, graduating from medical school and then taking a pharmaceutical marketing master’s at Ecole Superieur de Commerce de Paris. She took an EMBA and obtained her PhD in infectious medicine. After experience in the local and French pharmaceutical industries, she founded her own beauty products firm, along with her mother, based on thermal water extracted locally from the Herculane source. Herculane thermal spring water used in Ivatherm products comes from a saline spring and has a medium degree of mineralization (2500 mg/l), which is ideal for cos-
metic products, she told attendees. It contains Al, Cu, Fe, Zn, Mg, said to be essential elements for the skin’s health, conferring a calming and antiirritant effect on the skin. “Besides the Herculane thermal water, all our products contain 95-97 percent natural ingredients, with a special focus on vegetal and scientific innovation,” said Hurezeanu. She listed as the ultimate products for skin care Glycokines, natural sugars obtained through biotechnology; Viniferol, the extract of Bordeaux vine stalks; Macadamia oil; MDI complex, an extract of marine cartilage; Alpha-bisabol, a well-known anti-inflammatory obtained from Vanilomopsis Eritropapa, an Amazonian tree; PhytoCellTecTM Alp Rose, a natural extract of Rhododendron ferrugineum, a plant found in the Alps; and Cupuacu butter, obtained from the fruit of a wild tree in the Amazon rainforest, among the most important ingredients helping skin to “fight” signs of aging. oana.vasiliu@business-review.ro
www.business-review.eu Business Review | July 21 - 27, 2014
WELLNESS 13
Camelia Sucu, owner of Iconic Health Concept (left), and Rucsandra Hurezeanu, founder and general director of Ivatherm
Ana Maria Stanca of Business Review, Silvia Radu of Philip Morris and Anca Harasim of AmCham in Romania
Talking about beauty
Raluca Crisan Immochan Romania
Elena Samoila & Dana Marinoiu, both of Mol Romania
Sucu talks about her program
A post-detox menu
Valentina Craciun, Raluca Motrea, Alexandra Nicolae, all of Noerr, and Oana Albu of Business Review
www.business-review.eu Business Review | July 21 - 27, 2014
14 CITY FILM REVIEW
Cuban Fury weight. He can’t get a girlfriend – he might have an exasperated ex who’s left him for a more reliable man. He’s a loser, a loner, a slacker, a slob, a Director: James Griffiths schlub, a sad sack – but, dammit, he’s Starring: Nick Frost, Rashida Jones, got heart. And when he gets his Chris O'Dowd, Ian McShane, Olivia chance, this man will shine! Colman, Kayvan Novak Underdog movies have a well On at: Cinema City Cotroceni, Cinema known tradition and trajectory. We City Cotroceni VIP, Cinema City Sun love to root for the David over the GoPlaza, Glendale Studio, Grand Cinema liath. It’s a genre that sits particularly Digiplex, Hollywood Multiplex, well with British sensibilities, given Movieplex, The Light Cinema our penchant for self-deprecation and In American movies, he is played by apology, mistrust of success and Seth Rogen, Jack Black or Kevin “After you Claude – no, after you Cecil” James – sometimes Ben Stiller in a mentality. From George Formby in thinner version. In British films, he’ll the Ealing comedies to Sheffield’s typically take the form of Simon Pegg steelworker-strippers in The Full – or there might be a whole group of Monty, we Brits will always get behim, as in Brassed Off. He’s working in hind a plucky loser. Even in Richard a dead-end job – or out of work en- Curtis films – where everybody is rich, tirely – and carrying some excess posh and good-looking – we’re still expected to see Hugh Grant or Colin Firth as some sort of underachiever. Pegg has latterly cornered the UK Creart offers classic underdog market, but it’s his longtime collaborator, the suitable portly films al fresco Nick Frost, who stars here. Bruce GarA newcomer has recently joined rett (Frost) was a teen salsa champion, Bucharest’s open-air cinema cirbut abandoned dancing after being cuit (which includes weekend sumbullied. Now he’s an office drone at an mer screenings at CinePark in engineering company – all of the scenes at which underline how influHerastrau and projections at the ential Ricky Gervais’s The Office has NCRR, at the Peasant Museum). been in comic presentations of whiteEstablished in the garden of Creart, collar work. There’s the David Brentin Piata Lahovari, the venue, which ian social awkwardness and tedium, started operating on July 11, and even the Chris Finch-inspired screens movies every night at workplace misogynist, Drew (Chris about 21.00, with an affordably O’Dowd). priced bar. The classic selection Needless to say, Bruce’s contact has featured such favorites as Rain with women – outlined in weekly reMan and Forrest Gump, and the ports during golf games with geeky week beginning Monday 21 July will friends – is nil, excluding self-esteem showcase works by Sidney Lumet, boosting chats with his sister Sam Martin Scorsese, Federico Fellini (Olivia Colman). Naturally, they boost and Baz Luhrmann, among others. his self-esteem, not hers: the film is More details at the Gradina entirely uninterested in Sam outside cu filme Facebook page or her cheerleading for Bruce, and she is mocked for being 35 (OMG! The horhttp://creart.ro/program-gradinaror!) and working in a bar. cu-filme-cinema/ Another female whose only rele-
DEBBIE STOWE
FOUNDING EDITOR Bill Avery PUBLISHER Anca Ionita EDITOR-IN-CHIEF Simona Fodor JOURNALISTS Otilia Haraga - senior journalist, Simona Bazavan, Ovidiu Posirca, Oana Vasiliu COPY EDITOR Debbie Stowe PHOTO EDITOR: Mihai Constantineanu
ISSN No. 1453 - 729X
LAYOUT Beatrice Gheorghiu ART DIRECTOR Alexandru Oriean
Frosty reception: Bruce Garrett (Nick Frost) takes to the dance floor vance is as an object of desire for the male characters is Bruce’s attractive new boss Julia (Rashida Jones), the usual out-of-his-league woman who enchants the loser (see: Thandie Newton in Run Fatboy Run, Rosario Dawson in Zookeeper etc). Spoiler alert (I’m being sarcastic): she loves salsa! And Bruce thinks that if he can impress her with some shuffling and shimmying, she will be unable to resist him. Because women always want to sleep with any man who happens to share one of their hobbies. Obviously. But: problem. Drew, the office sleazebag, also wants to bed Julia. And he can salsa too. Maybe she’ll choose him instead… No need to outline the rest of the plot, as you already know it. This is contrived, predictable, hackneyed, flimsy and sexist stuff. It’s partly
saved by some solid performances, notably O’Dowd as the office slime ball and Kayvan Novak as flamboyant Middle Easterner Bejan (although the latter treads controversial territory, ticking off almost every camp stereotype in the book). There are also some amusing, if crass, lines: “I have something you don’t have.” “Type 2 diabetes?” gives a flavor. And for its many flaws , Frost’s likeable loser persona just about keeps the viewer with him until the finale. That is set in a salsa club, which in dreary suburban England on a midweek evening, we are supposed to believe is teeming with lithe Latino couples twirling and hoisting each other over their heads. This is about as convincing as Cuban Fury.
EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi SALES & EVENTS Sales managers: Ana-Maria Nedelcu, Oana Albu, Raluca Comanescu MARKETING Ana-Maria Stanca, Ana Maria Andrei, Iulia Mizgan PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat
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