Business Review No.3, February 6 - February 12

News: American manufacturer Johnson Controls has opened a new seat plant in Craiova, a move Mark Gitenstein, the US Ambassador in Romania, believes will combine local talent with American technology »page 4

ROMANIA’S PREMIERE BUSINESS WEEKLY

SWISS INVESTMENT

FEBRUARY 6 - 12, 2012 / VOLUME 16, NUMBER 3

THE LARGE INVESTORS ARE CONSOLIDATING THEIR LOCAL OPERATIONS, WHILE THE PAST YEAR HAS SEEN A NEW ADDITION TO THE COMMUNITY »PAGE 10

INVESTMENT MAPPING 2012

NEWS

NEWS

PROPERTY

CITY

FILM REVIEW

Titanic ambition

Ground work

Getting real

Valentine’s Day

Beautiful Lies

Titan Machinery is aiming for EUR 40 million in sales this year, after acquiring local agricultural dealer Agroexpert » page 4

C&T Samsung and Satel Consultants are both interested in joining with the state to implement the general cadaster » page 4

Three transactions accounted for 70 percent of the value of local property investment last year, on the rise from 2010 » page 9

From the best restaurants for a Valentine’s dinner to places to find the perfect gift, BR helps get you in the mood for love » page 12

Audrey Tautou reprises the spirit of Amelie to star in a very French rom-com, finds our movie reviewer » page 13

Photo: Mihai Constantineanu

Agriculture and tourism are emerging as investment hotspots, while retail and energy are keeping a steady pace in attracting funding. BR surveys the sector trends and the options available to private investors »page 6-8

www.business-review.ro Business Review | February 6 - 12, 2012

NEWS 3

NEWS in brief

BUSINESS AGENDA

PICTURE of the week

Courtesy of Greenpeace

ENERGY GDF Suez to build 48 MW wind park The local subsidiary of GDF Suez has entered the renewable segment through the acquisition of a wind project from real estate developer Belrom, in Gemenele, Braila County. The project has all the permits and authorizations, including the technical contract for connection to the national grid. The park will have an installed capacity of 48 MW, powered by 21 turbines of 2.3 MW each, which will be bought from Siemens. GDF expects to start producing electricity by end-2012.

Electrica starts new auction for EUR 70 mln wind turbines Electrica has cancelled the public auction for wind turbines and will start a new one. The company is trying to acquire wind turbines for the 45 MW Frumusita park, located in Galati County, and for the Chirnogeni park in Constanta County. Electrica says bidding companies failed to adapt contracts to public procurement legislation in force in Romania, and also provided incomplete solutions for the connection of the parks to the grid.

Romania wants to delay gas and electricity price liberalization President Traian Basescu said this weekend that the government will try to negotiate with the IMF the rescheduling of deregulated prices in natural gas and electricity for companies and households through to 2020. Under the current agreement, Romania should remove controls on energy prices for companies from 2013 and for household consumption in 2015.

INSURANCE MetLife buys local Aviva business MetLife, Inc. has acquired from Aviva plc its life insurance businesses in the Czech Republic (Aviva Czech Life) and Hungary (Aviva Hungary Life), and its life insurance and pension businesses in Romania (Aviva Romania Life and Pensions), the company announced in a press release. The fi-

WEEK in numbers

5.5 percent is the new interest rate set by Romania’s Central Bank, down 0.25 percentage points from 5.75 percent

19 million is the estimated stable population of Romania, according to preliminary data from the latest census and issued by the National Statistics Institute (ISN)

nancial terms of the deal have not been disclosed. Deutsche Bank Securities Inc. served as exclusive financial advisor to MetLife.

Green protests get heated Protest against the Rosia Montana mining project intensified last week when several Greenpeace members forced their way into the Ministry of the Environment. Protesters headed to the office of the minister, Laszlo Borberly, where one chained himself to a heater.

MACRO Romania will include new EU fiscal rules in constitution Twenty-five out of twenty-seven European Union states, including Romania, agreed to sign a German-inspired fiscal stability treaty to install stricter budgetary discipline, at the end of a half-day summit in Brussels, reports Reuters. The pact imposes sanctions on countries that breach EU budget deficit limits. The annual structural deficit must not exceed 0.5 percent of nominal GDP. As soon as a Euro member state is in breach of the 3 percent deficit ceiling, there will be automatic consequences, including sanctions.

POLITICS Former PM Adrian Nastase gets two years in jail

Adrian Nastase, the former prime minister, has been sentenced to two years in jail by the High Court of Justice and Cassation for his involvement in the Quality Trophy file. He has the right to appeal against the sentence. Nastase was prosecuted in January 2009 for influence peddling, having used his position as president of the Social Democrat Party (PSD) to obtain funds for his electoral campaign in 2004, when he ran for president.

INVESTMENTS

REAL ESTATE

Bosch seeks state aid

NEPI buys into Timisoara City Business Center developer

German car parts producer Bosch has applied for state aid for its investment project in Cluj, according to Prime Minister Emil Boc. “Bosch has submitted a request for state aid to create jobs and make investments in Cluj and other companies that come there in the place of Nokia,” said Boc. Bosch will set up its production facilities on 21 hectares in the Tetarom III industrial park, which previously included the Finnish phone maker’s production unit, where it will manufacture electronic components for cars. Investments made by the German producer could reach EUR 60 million.

South African investment fund New Europe Property Investment (NEPI) has taken over the majority stake in ModaTim Investment Properties, the developer of the City Business Center CBC in Timisoara. Businessman Ovidiu Sandor, the initiator of the project, will continue to administer the project until 2015, and will be in charge of managing the development of buildings D and E. Jones Lang LaSalle was the real estate advisor in the project, NNDKP provided the legal consultancy, and PwC was the financial and fiscal consultant.

February 7 The Central Bank of Romania organizes a press conference to present the quarterly inflation report.

Mugur Isarescu, central bank governor, will attend. By invitation only.

February 8 08:30 Confindustria Romania organizes a conference on the Danube Strategy, at Marriott Hotel. By invitation only.

February 16 - 17 IMM Forum, an event dedicated to SMEs, will take place at Romexpo Exhibition Center. More info at www.imm-expo.ro.

February 22 ∫EVENT BR organizes the seventh edition of the Annual Investment Awards at Athenee Palace Hilton Hotel. www.businessat Details review.ro/events.

RETAIL House of Art and Levis file for insolvency Casa de Insolventa Transilvania was appointed judicial administrator of Staff Collection and Corssa, the two companies that run the local House of Art, Fox, Levis and Eponge stores and which have filed for insolvency. “The purpose of the reorganization process is for the two companies to continue their activity on the local market in a solid and sustainable way,” said officials from Casa de Insolventa Transilvania, in a press release cited by Mediafax. Staff Collection and Corssa are owned by the Mihet family.

TELECOM Telecom regulator cuts termination rates The telecom regulator in Romania has announced that it will slash termination rates for mobile and landline calls in Romania by more than 30 percent over March-September this year. From September, the maximum termination rates in mobile networks will be 3.07 eurocents per minute.

For landline calls, termination rates will be 0.67 eurocents per minute starting July.

TRAVEL Tarom reduces losses by 24 percent y/y National airline Tarom failed to reach breakeven in 2011, reporting approximately EUR 58 million of losses. Although the losses were down 24.16 percent y-o-y, they continue to be higher than the level posted in 2009. According to the company’s draft budget for 2011, Tarom had hoped to reach breakeven last year. In its draft budget for 2012, the company estimates that it will reduce losses to EUR 43.4 million this year and further to EUR 28.4 million in 2013.

www.business-review.ro Business Review | February 6 - 12, 2012

4 NEWS INVESTMENT

BONDS

Johnson Controls opens new seat plant in Craiova

Romania successfully issues 10-year bond on US market

Courtesy of Johnson Controls

Mark Gitenstein, US Ambassador in Romania

A

merican manufacturer Johnson Controls opened last week a new production facility in Craiova, in the premises of the Ford plant. The 11,000-sqm just-in-time (JIT) plant will supply seat systems for the new B-MAX minivan that will be rolled out later this year by Ford.

"Romania is an important part of the growing Eastern European automotive market as industry projections expect the country’s automotive market to grow by approximately 80 percent over the next four years,” said Jeff Williams, group vice-president and general manager, customer group Americas for Johnson Controls Automotive Experience.

The Craiova plant is the ninth production unit that Johnson Controls has in Romania and will create 160 new jobs. This plant will take the firm’s nationwide num-

ber of employees to nearly 4,500. The company is already supplying car seats to Dacia from its factory located in Mioveni, Arges County. “This is a good opportunity to combine the talent of Romanian workers with American technology,” said Mark Gitenstein, US Ambassador in Romania. The plant will assemble customized seats for up to 1,300 cars every day. Yearly capacity could reach 300,000, but this will depend on Ford’s manufacturing rhythm.

Craiova’s mayor, Antonie Solomon, said he will be lobbying the Ministry of Transportation to reconsider the building of a an express road between Craiova and Pitesti, two cities where Johnson Controls has manufacturing facilities, which could improve transportation conditions for the company.

Williams is confident that the authorities will improve the infrastructure, given the estimated growth in the automotive sector, and Johnson Controls could open new plants if customers in the automotive grow their business. “The opening of this plant signals the strong development of the manufacturing sector in Dolj County. We strongly believe that Romania is the right place for us and our partners,” said Jan Gijsen, president of Ford Romania. The company has spent almost EUR 675 million since acquiring the Craiova plant in 2008. ∫ Ovidiu Posirca

This was the first local dollar-bond sale

T

he Finance Ministry has raised USD 1.5 billion from the issuance of 10year bonds at a yield of 6.87 percent, in its first dollar-denominated debt offering, although bidding for the offer amounted to USD 7 billion. Banking giants Citigroup, Deutsche Bank and HSBC Holdings handled the deal.

“The investors’ interest was huge, considering this is Romania’s first dollarbond sale, and it’s a clear signal of confi-

dence in Romania’s fiscal measures,” said Bogdan Dragoi, state secretary in the Public Finance Ministry, quoted by Bloomberg.

The government will use the resulting sums to finance the budget deficit and repay maturing debt.

“Romania has the lowest debt percapita out of all EU member states, at EUR 4,570, and we aren’t planning to repay it fast,” said the Romanian president, Train Basescu. “We will refinance the current debt and avoid widening it, so Romania can develop nicely.”

The country is pursuing a EUR 7 billion three-year program to tap international markets. It started last June when EUR 1.5 billion was raised by issuing five-year euro-denominated bonds.

Romania is rated at Baa3 by Moody’s, and BBB- by Fitch Ratings. Standard & Poor’s rates Romania below investment grade at BB+. All three ratings agencies see Romania’s economic outlook as stable. ∫ Ovidiu Posirca

AGRICULTURE

Titan Machinery targets EUR 40 million sales in 2012

A

fter acquiring local agricultural equipment dealer Agroexpert last year, US-based Titan Machinery estimates that in its first year of activity on the Romanian market it could double the company’s sales to about EUR 40 million, said Radu Lupu, deputy general manager of Titan Machinery Romania.

“We chose Romania because the production and the soil here are very similar to those in North Dakota,” said Peter Christianson, president of Titan Machinery, according to Mediafax. Romania is the first foreign market to which the American agricultural and construction equipment dealer has expanded.

The company mainly targets local farmers who cultivate more than 400 ha of land. Titan Machinery owns 70 percent of Titan Machinery Romania, formerly Agroexpert. The other shareholders are

two individuals – Erich Urban (with a 20 percent stake) and Radu Lupu (with 10 percent). Titan Machinery acquired Agroexpert in November 2011. The company had a turnover of USD 14 million in 2010.

The company runs two dealerships in Romania, in Bucharest and Timisoara, and has announced plans to open additional outlets in Oradea, Roman or Iasi, and Constanta.

Based in West Fargo, North Dakota, Titan Machinery now runs 91 service and dealership offices in the US. It sells several CNH brands (a subsidiary of Fiat Industrial) including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, Kobelco and CNH Capital. The company also sells construction equipment. ∫ Simona Bazavan

REAL ESTATE

General cadastre comes with a EUR 600 million price tag

C

&T Samsung and Satel Consultants are the two companies that have so far shown interest in signing a public-private partnership with the Romanian authorities for the implementation of the general cadastre, representatives of the Ministry for Regional Development and Tourism (MDRT) told BR. The government recently announced that it was looking for firms with the necessary financial resources to implement the project, estimated to cost between EUR 500 and 600 million. “We intend to find a company in the shortest time possible. We estimate that in optimal conditions, five to six years will be necessary to complete the general

cadastre. But this is just an estimation,” ministry representatives told BR, adding that the deadline and the project’s feasibility will be subject to further analysis.

Elena Udrea, the minister for regional development and tourism, previously stated, “After twenty years of incoherent application of a property law, we unfortunately find ourselves in the situation where the surface area owned according to the property deeds that have been issued over the years is larger than Romania’s actual surface area.” The MDRT runs the Romanian National Agency for Cadastre and Land Registration (ANCPI). ∫ Simona Bazavan

www.business-review.ro Business Review | February 6 - 12, 2012

6 FOCUS Where to invest

Which roads will lead to profit in 2012?

Tourism, agriculture, retail, energy and IT&C seem to be the hot areas for investment this year. Business Review takes a deeper look at the fields likely to catch the interest of those looking to build or expand their portfolio in 2012.

Investment programs The yields of investment programs offered by Aviva Asigurari de Viata were in line with the investments made and risk taken.

“The RON investment programs performed best, especially the guaranteed ones. Their exposure is on fixed income financial instruments on the local market, and they exceeded the 2011 inflation rate and ensured positive yields for their investors,” says Mihai Popescu, general manager at Aviva Asigurari de Viata, of the company’s investment products. According to National Bank of Romania data, the inflation rate was 3 percent last year. As for the investment programs in foreign currencies offered by Aviva, Popescu says they were temporarily affected by the evolution of the international stock and bond markets.

Gold is often considered a prudent investment vehicle in troubled economic times

∫ SIMONA BAZAVAN, OTILIA HARAGA, OVIDIU POSIRCA, ANDA SEBESI

Individual options

John Templeton, founder of Templeton Mutual Funds, says that the four most dangerous words in investing are “this time it’s different”. With the local market connected to the international scene, the majority of investment instruments depend on how things progress abroad. But individual investors must set the prospective gains against their appetite for risk. Business Review surveyed the potential of the main investment vehicles for 2012.

Gold Gold can be considered a profitable option for the prudent investor. Many people see gold as a luxury issue rather than a good investment for “hard times”. According to PwC’s new annual Gold Price Report, 80 percent of mining companies expect the price of gold to continue to increase this year, with the majority of respondents predicting it to peak at USD 2,000 per ounce in 2012. Last year the price of gold rose by some 10 percent, says the same study.

Moreover, central banks’ demand for gold has escalated to 148.8 tonnes since 2010. The Bank of Korea is one example. In 2011, it made two major gold purchases – 25 metric tonnes in June and another 15 in November – the first such moves since the 1997-1998 Asian financial crisis.

“This is a trend we are seeing not only in developed economies, but also in emerging markets which have shown interest in boosting their gold holdings. We believe countries are now entering into a long-term period of gold accumulation,” says Alexandru Lupea, partner, assurance services, energy, utilities and mining industry service leader at PwC Romania.

Bank deposits Radu Ghetea, president of the Romanian Banking Association, said at the end of last year that he expected the interest rates for RON bank deposits to decrease in 2012. “We are faced now with a slightly different situation for savings than we have been used to so far. At present, while some lenders have cut their interest rates, others have preferred to maintain their higher levels and even negotiate, if we can say so, higher interest,” says Ghetea. According to Mihail Ion, president and CEO at Raiffeisen Asset Management (RAM), interest rates for RON are decreasing at the moment. But a customer who wants to obtain better yields on banking deposits has to lock up his or her money for at least two years. According to www.conso.ro, the average interest rates for RON deposits varied last week from 5.81 percent (for one month), to 6.03 percent (for three months), about 6 percent (for six months) and 6.15 percent (for 12 months), while for EUR deposits the rates are 2.76 percent (for one month), 3.05 percent (for three months), 3.14 percent (for six months) to 3.23 (for 12 months).

Mutual funds According to Ion of RAM, the yields of funds with interest-bearing financial instruments exceeded those offered by deposits, while other types of funds posted negative yields as a result of the drop in stock exchange quotations in 2011. As for the future, “these financial instruments will exceed the average interest rates for banking deposits although there will be fierce competition to attract Romanians’ savings this year,” says Ion. He adds that diversified and stock funds will be influenced by the performance of the stock markets. “If the Euro zone sovereign debt crisis improves gradually, without having a significant impact on economic growth, then the stock market will offer good yields this year. This will directly affect the results of stock and diversified funds,” predicts Ion. According to him, open investment funds on the local market have products for all types of investors. Both more conservatives and those with an appetite for risk will prefer interest-bearing financial instruments for sums available on the short term. For moderate investors that choose to invest their money, diversified funds are the most suitable investments. Elsewhere, dynamic investors that have financial resources available for the long term can invest their money in stock funds.

According to data from the Romanian Association of Asset Managers (AAF), from the end of December 2011, Undertaking for Collective Investment in Transferable Securities funds posted different yields depending on the type of funds. Over December 2010-December 2011 monetary funds posted a yield from 4.4-7.4 percent, bonds and instruments with fixed income funds from 0.5-14.14 percent (including foreign funds, with assets and subscriptions in RON and the yield calculated in the currency of the fund EUR or USD) while di-

versified ones had yields from 1.9-4.5 percent.

Romania’s investment hotspots

Moving beyond tourism potential Romania boasts some of the most extensive and varied natural landscapes in Europe, a fact acknowledged even by the UK’s Prince Charles, who has made real estate acquisitions here, but significant investment can be made in the infrastructure, where Romania is lagging behind other countries in the region.

The main tourist attractions are the local seaside, which stretches for 245 km along the Black Sea coast, the unique Danube Delta and the Carpathians, with ski resorts such as Poiana Brasov, Sinaia and Predeal. Modern accommodation facilities and services can be found in the spa resorts of the Carpathian valleys and plateaus such as Baile Herculane, Covasna and Vatra Dornei.

Romania had 5,222 tourist accommodation establishments in 2010, according to the National Statistics Institute (INS). There are 1,246 hotels, 1,354 rural tourist boarding houses and 768 villas, but bungalows and chalets are also available. The INS says the existing accommodation capacity totaled 311,698 beds.

In the seaside there are 1,014 tourist accommodation units, out of which 318 are hotels, while the mountain resorts have 1,038 facilities, including 121 hotels. The Danube Delta has 127 tourist establishments, but only 15 hotels.

The accommodation facilities are unsufficient though for the influx of tourists coming to Romania in recent years. Around 1.3 million foreign tourists arrived in Romania in 2010, with another 4.7 million Romanians. There were over 86,000 foreigners in mountain resorts and 31,000 at the seaside, but Bucharest and the main cities hosted around 1 million foreigners.

Romania registered an FDI inflow in tourism of EUR 186 million between 2006 and 2010, according to a report on tourism

by BCR. During the same period, neighboring Bulgaria was able to attract EUR 450 million. Romania also posted a negative aggregate income in the balance of tourism between 2006 and 2010.

Steady profits in energy Energy is the lifeblood of any society and pundits say it could be profitable in Romania. The national energy and transport sectors have been modernized by private investors, such as E.on, Gdf Suez and Enel, but around EUR 10 billion will be needed in the years to come for improvements in this sector according to Mark Gitenstein, US Ambassador in Romania. Chevron and Exxon Mobil, two American energy giants, are interested in shale gas and traditional oil and gas, but General Electric is also considering investment in the electricity grid.

The renewable sector has gained traction in recent years, mainly in wind installments, but the other clean energy sources represent good investments as well. The government recently amended renewable energy law no. 220/2008, allowing energy producers to be granted up to six green certificates for every 1 MW produced and delivered to consumers from clean sources.

The price limits for green certificate trading are a minimum EUR 27 and maximum of EUR 55 per certificate, but they are currently being traded almost at the maximum.

“I believe investment can be made in the renewable segment. It is in a very good

www.business-review.ro Business Review | February 6 - 12, 2012

Where to invest FOCUS 7 mania and will grow considerably in the years to come. Romanians have got used to buying electronics and IT products online and other consumer goods will follow suit.

Large food retailers are also expected to enter this segment despite the fact that the possibility of doing the weekly grocery shop online remains some way off. Metro Cash&Carry Romania was the first to break the ice after launching in January 2012 an online store that sells about 4,500 office stationery products and various electronic appliances.

Photo: Mihai Constantineanu

Romania’s untapped tourism potential – such as at the Danube Delta – could offer profitable investment opportunities stage supported by the new law, and the number of green certificates has risen. In the wind segment we have many players, and I would go for solar and co-generation systems,” Corneliu Bodea, vice-president of Adrem Invest, told BR. Adrem will build a EUR 70 million co-generation plant in Suceava County and two solar parks of 10 MW each. At present, Romania has 826 MW of wind capacities, 380 MW in microhydro plants, 1 MW in solar and 25 MW for biomass.

Planting for future growth in agriculture Soaring food prices worldwide and an ever increasing global population make agriculture and farmland acquisition two very lucrative business options, and Romania offers plenty of opportunities in both fields.

Be it traditional crop cultivation, zootechnics, organic farming or agribusiness, there are many options to choose from. “Agriculture can certainly be a very rewarding industry for those with a solid, well thought out and well implemented business plan,” Gabriel Ionescu, the advisory coordinator of the AgroManager program of AgroAdvice, told BR. He added that after the good results last year, the local agriculture industry has been getting a lot of attention from potential investors and entrepreneurs. Several local businesspeople who have established themselves in other industries have announced plans to diversify their operations by investing in agriculture, the most recent of whom is Ion Alexandru Tiriac, the son of local billionaire Ion Tiriac. Foreign investors also have set up businesses here and bought land in recent years.

Romanian farmland is valued on average at less than 20 percent of its Western European equivalent, making it a fertile investment opportunity. The good quality of the soil here, large surfaces of available land and, most of all, cheap prices have made many foreign companies and investment funds buy land and many more state their interest.

The 2010-2011 national agriculture census reveals that there are about 8.2 million hectares of arable land in Romania, placing it in fifth position in the EU, after France, Spain, Poland and Germany. About 8.5 percent of the country’s total farmland is owned by foreigners according to data from the Ministry of Agriculture.

When it comes to farmland and forests, the market has been less affected than the general real estate sector, and looking both at global trends and the local offer, things should take a turn for the better in the years to come. Demand is on the rise and prices are set to follow suit.

Romanian farmland comes with a low price tag when compared both with Western Europe and also in a regional context.

According to DTZ Echinox, farmland prices have returned last year to the levels registered in 2002 and 2003, averaging between EUR 1,000 and EUR 3,000 per hectare depending on the plot size, soil quality and region. In a few years’ time prices could be back to where they were in 2007 and 2008. “On the medium and long run, the price of local farmland could come close to the Central and Eastern European average. However, we think that it is very unlikely it will reach the prices seen in countries like Holland or Denmark where a hectare of agricultural land often surpasses EUR 20,000,” Marius Grigorica, senior business analyst with DTZ Echinox, told BR on a previous occasion.

Although pundits agree that the market is heading for consistent future growth, there are discrepancies between supply and demand. Investors, especially large foreign companies and investment funds, are looking for big, consolidated plots – investors are mainly looking for over 1,000 hectares – whereas about 25 percent of the country’s agricultural land is estimated to be divided into plots of under one hectare.

The lack of cadastral documentation and the high costs of obtaining it also add to the challenges the local market faces.

Retail: success of the fittest Retail remains on investors’ radar despite the fact that Romanians spent less last year and 2012 has not yet produced any good news, with consumption expected to continue to decline.

But while the market is dominated by large retailers who will continue investing in expansion throughout 2012, this doesn’t mean that there isn’t room for newcomers.

Kids’ retail and online stores are just two of the options to consider and, probably more than in any other industry, innovative niche business ideas can go a long way.

“In the current market environment we don’t see retail greenfields as an attractive

investment compared to other industries, if not driven by a very specific niche or game change of the retail formats,” Michael Weiss, partner with A.T. Kearney’s Bucharest office, told BR. The Romanian toy and game market is one of the most dynamic in Central and Eastern Europe and could grow annually by 14 percent until 2015, estimates Euromonitor.

As for online stores, market analysts say that e-commerce is still in its infancy in Ro-

Research segment gets EU backing If you are looking for reasons to place your money in research projects, the EU launched last week the biggest ever call for proposals to fund European research and innovation, totaling around EUR 7 billion.

When they adopted the Europe 2020 strategy and, later, the flagship Innovation Union program in February 2011, EU member states, including Romania, committed to make research and innovation a priority in the foundation of their investment plans in jobs and sustainable growth.

There is no shortage of financing. Potential beneficiaries in all EU member states, which include Romania, can tap into this EUR 7 billion to finance their research projects. In total, it is estimated that the program will generate around 174,000 jobs in the near future.

There will be 16,000 beneficiaries of the financing – universities, research organizations and companies. Special attention will be given to small and medium sized enterprises, which will benefit from a financing package of nearly EUR 1 billion.

www.business-review.ro Business Review | February 6 - 12, 2012

8 FOCUS Where to invest PARTNER CONTENT

Problems specific to the challenge of acts issued by public authorities in public procurement procedures prior to concluding the contracts 2012 is definitely the most interesting year in the short history of Romanian Green Energy sector.

There are many out there who compare it with 2007 and the Real Ilias Papageorgiadis Estate sector back then. Foreign investors show high interest indeed, but they are much more cautious now comparing to the past. The era of “buy now, check later” is history. Nowadays everything is verified in advance, thoroughly and carefully.

Let us take the example of the Wind Energy segment, the most dynamic one at the moment. It has attracted the interest of several big companies and investment funds, but there are many “obvious” issues that one should be aware of, before he proceeds in his investment. Let us look at 10 of them together: 1. Wind measurements Don’t smile. In 2012 Romania there are several people out there who try to sell wind projects, without proper wind measurements (!) They have millions of excuses for this, but there is no reason for someone to lose time with their cases.

2. “Give me some money, to show me that you are serious. Then you can verify my project’s documents” I heard this expression more than 20 times in the last year. The excuse is that “the owner does not wish to lose time with people who are not real investors”. But I don’t know many real investors who would accept this.

3. Do we need a transformer? We do, plus all adherent details of the project The majority of wind energy projects in Romania need a transformer as well, in order for them to enter the grid without problems. The owner is supposed to have studied the issue, being able to provide us with the technical solution he chose, in detail.

5. The cost to connect to the grid I know projects where the connection to the grid boosts the total investment by more than 30%. Some of them are still worth it, due to the wind speed and total net production of MW/hours. What is the status of your project?

Nicolae Grigorescu’s works, such as Cart with Oxen, can bring a 20-30 percent return

6. What does the business plan include?

Everything! But many project owners do not even have one that can be presented and considered trustworthy.

Why? These business plans should be written by specialized companies. And these companies charge a lot…

Meanwhile, in Romania, several large research projects have already been announced, in domains such as nuclear physics, health, pharma, nanotechnology, smart cities and IT. Doina Banciu, general manager of the National Institute of R&D in Informatics, tells BR that the most important projects are in the fields such as eLearning, eContent, eHealth and eGovernment. “The development of digital content for cross-border online information, the development of interoperability among cross-border administrative procedures as well as ambient intelligence and humanoid robots are the IT projects that deserve the investors’ attention ” says Banciu.

At the moment, the largest-scale research project being developed in Romania is the Extreme Light InfrastructureNuclear Physics (ELI-NP) project, which will mark a premiere in physics: the intersection of a high-power laser beam and a brilliant high-energy gamma beam. The project is expected to make Romania an important scientific hub for talent and know-how, creating 214 new high-qualified jobs in research and tech support.

“There is expertise in Magurele, both in the domain of lasers and nuclear physics. After Germany, France and Great Britain, the best expertise in nuclear physics can be found in Romania,” said Nicolae Victor Zamfir, project-manager of ELI-NP.

7. When do we pay?

I know, the typical expression says “I want to sell now, without waiting for the investor to start building the project”.

But serious investors always prefer to leave a sum for the end of the construction, making sure that the project owner assisted them during the construction period.

8. Low project price is not always as cheap as it looks The first time I was offered a wind project with a very low price, I was happy. Then I looked at the wind speed, the net production of MW/hours and the cost to connect to the grid. Calculating with a colleague of mine, we realized that the price would be expensive even if they were charging the project with 0.

9. Is there room for speculation games?

Romania does not have unlimited number of MW which will receive subventions. The figure is specific and it will probably be covered during 2013. If you intend to buy and wait, you risk to get blocked like the owners of Real Estate assets.

10. Papers, papers, papers What some Real Estate investors are paying for today is the lack of proper documents for their properties. The human species should evolve. We should learn from this mistake and be extremely careful in everything, Green Energy included. If the papers are not in order, the bet you take is a very dangerous one.

What is your opinion?

Ilias Papageorgiadis, CEO - More Real Estate Services

ADVERTORIAL

4. How do we connect to the evacuation point?

Half of the projects in Romania stop when they reach this critical question: How do we connect? If we have to pass through private properties, the problem must be solved in advance. If the route is not 100% secure, the investor will end up being blackmailed and no

one has time or money to lose.

IT poised for growth The IT market in Romania is set to grow by 12.7 percent in 2012, according to a report by Erste Group on the Central and Eastern European region.

“After a drop over the last three years, the Romanian IT market is on a positive trend. In the private sector, SMEs are increasingly interested in IT products and services. The Software-as-a-Service recipe is beginning to work on this market,” George Stan, president of the administration board of TeamNet, tells BR. Growth driver number one will be cloud computing, which will be particularly attractive to SMEs and start-ups in Central Europe, found the Erste report.

A second growth driver is mobile communication networks, which goes hand-in-hand with the dynamic growth of smart phones, tablets and internetbased applications like cloud computing, machine-to-machine communication, video streaming, or data and voice communication. Thirdly comes the increase in efficiency, operational and strategic excellence. Last but not least, one should not

forget the EU funds which fuel public IT projects.

“The weight of equipment sales is starting to dwindle in the IT industry and this favors investments attracted by specialized software companies and system integrators. Since this is a sector where the quality and training of people has an essential contribution, Romania attracts due to the good quality-cost ratio,” says Stan. “As this is a demanding sector from the point of view of the labor force, investors are checking the level of involvement of the technical and management teams as well as personnel retention.”

There are two main reasons to invest in IT, Andrei Pitis, vice-president of the Association of the Software and Services Industry (ANIS), tells BR: the growth of the IT local market which is at a relative low compared to other countries in the region, and the number of technological start-ups that are successful outside the country.

“One of the most important investment domains is software of the type ERP (enterprise-resource-planning) or CRM (customer-relationship management) for the local market. Also another smart thing to do would be to place your money into a start-up that could target a global market,” advises Pitis.

Drawing a profit from art The launch of a Romanian Art Market Index and an investment fund dedicated to this market by local auction house Artmark last year were signs that a huge, untapped investment potential had finally been unleashed. According to figures from the auction house, which cover all the public transactions in Romania between 1995 and 2010, with more than 1,000 local artists taken in consideration, the average annual return on investment for a well traded artist such as painters Nicolae Grigorescu, Ioan Andreescu or Nicolae Tonitza is 20-30 percent.

While classic Romanian art is not yet valued on the international market, contemporary works are already being exhibited at international fairs by local galleries. Last year the European Parliament bought works by several contemporary Romanian artists (Ioana Batranu, Horia Bernea, Geta Bratescu, Daniela Chirion, Florin Ciubotaru, Suzana Dan, Sorin Dumitrescu, Daniela Fainis, Stela Lie, Valeriu Mladin, Gili Mocanu, Teodor Moraru and Mihai Topescu) for its collection, for almost EUR 100,000.

www.business-review.ro Business Review | February 6 - 12, 2012

PROPERTY 9

Romania returns to transaction graphics, but for how long?

Although there was an interesting rise in the real estate investment volume in 2011, the situation now seems to be just a mocking reminder of the fragility and volatility of the real estate market during economic and financial crises. more properties auctioned by the banks, either properties on their own books or assets owned by debtors who can no longer pay their credits,” adds Florea of Cushman & Wakefield Romania. But in general, properties with problems will be hard to sell. The City Mall project is one such example, as it was sold after many attempts and with a 50 percent cut in price. As for quality properties, the majority of them have an occupancy rate of 80-90 percent and developers can pay their installments to the banks, without being forced to do so.

∫ ANDREEA CEASAR

Realistic expectations

Photo: Laurentiu Obae

Last year Romania recorded a real estate investment volume of EUR 328 million, up 23-25 percent on the previous year, according to the global property consultant Cushman & Wakefield. More than 70 percent of this value was linked to three main transactions: CA Immo’s acquisition of Europolis – which meant no less than EUR 174 million for Romania – followed by the takeover of residential property group Adama by Immofinanz (a transaction with a total value of EUR 42.4 million) and the acquisition of the retail center City Mall by Ioannies Papalekas for EUR 17.3 million.

“In 2011 we saw an increase in foreign investors’ interest in acquiring properties in Romania, determined by the economic stability, the falling off of inflation and the slight increase in the economy, among the price boosts in other CEE countries,” says Costel Florea, head of capital markets at Cushman & Wakefield Romania. In fact, the investment activity in Central Europe grew substantially in 2011, with EUR 6.1 billion invested in the core markets of Poland, the Czech Republic, Slovakia, Hungary and Romania. This is more than double the EUR 2.9 billion invested in Central Europe during 2010.

"Most CE markets in 2011 experienced a significant increase in activity due to much improved investor appetite and a reasonable supply of quality assets,” says Charles Taylor, partner at Cushman & Wakefield. But this previous increase doesn’t imply that the volume will continue to accelerate in 2012, as by the end of Q3 of 2011 investors’ confidence had started to shake due to the market turmoil that returned to the Eurozone, as bank lending slowed.

The blockage was keenly felt locally.

Despite the fact that Colliers International, another international consultant present on the local market, announced in November 2011 that in the next four months the market should record an extra EUR 300 million in transaction volume for commercial property (office, retail and industrial), the expectations changed visibly in just two months.

“From the EUR 300 million that was in due diligence late last year, a number of deals have stalled, largely due to the difficult financing conditions and banks moving very slowly, even carrying existing loans over. As such, we predict that this figure will not fully eventuate and that those deals that are closed could take a number of months longer than predicted. While, generally, there are a

The acquisition of retail center City Mall by Ioannies Papalekas for EUR 17.3 million was a major deal last year number of aspects specific to each deal, the availability of finance at reasonable terms holds the key for most of these deals,” says Blake Horsley, director of the investment division at Colliers International.

The firm was not the only one expecting great things on the market The majority of consultants were aware of the discussions and were optimistic about their results. Most of the talks started at the beginning of 2011 but, as the summer came, the financing conditions had become more difficult to meet.

Foreclosure property auctions could and should start this year Although expectations are now far lower than four or five months ago, there is a segment that might raise investors’ interest. “The banks are generally constrained to execute the guarantees of nonperforming loans which can no

longer be restructured,” says Marius Grigorica, senior business consultant at DTZ Echinox. These constraints are determined by the tight deadline given

by Basel III, the global regulatory standard on bank capital adequacy and market liquidity risk agreed upon by the members of the Basel Committee on Banking Supervision in 2010-11. As Basel III has strengthened bank capital requirements and introduced new regulatory requirements on lender liquidity and bank leverageing, some real estate assets will finally be foreclosed.

“We expect an important percentage of total assets foreclosed by the banks to be the ones which cannot generate incomes or whose incomes cannot sustain the repayment of the loans. These kinds of assets could be mainly plots of land and residential projects, but there will also be cases of nonperforming commercial spaces or office buildings without tenants,” adds Grigorica. “We could see

For 2012 Cushman & Wakefield estimated a real estate investment volume of approximately EUR 350 million, based on the discussions started in 2011. Most of the investments will go into office buildings and retail projects, like last year. The higher interest in office buildings has been caused by some five-year rental contracts with important creditworthy companies that pay similar rents to those in other CEE countries and by building yields, which is similar to European trends.

“If there is financing, in 2012 we will mainly be talking about transacted assets that can and will bring incomes such as office buildings and retail space. Also, the expansion plans of the large retail networks and the entrance onto the local market of new ones could generate important land transactions,” predicts Grigorica of DTZ Echinox. “Office stock in good locations with low vacancy levels has been on investors’ target list for some time, due to the lower risk associated with this asset class, and the undersupply in these areas in the near future may also lead to rental growth,” adds Horsley of Colliers International, stressing that he does in fact expect a lower deal volume due to financing restrictions and the weaker investor sentiment in the context of the European debt crisis.

Bucharest will remain the main target for investors, though well leased retail outside the capital and quality development plots for big box retail will also be considered nationwide. “The main factor that can influence the revival of real estate investment is the cost of financing and obtaining the financing. If financing costs continue to be high and the process of obtaining credits is taught, we will record a low volume of transactions, with few transactions of over EUR 50 million,” concludes Costel Florea of Cushman & Wakefield Romania.

andreea.ceasar@business-review.ro

10 SWISS INVESTMENT

www.business-review.ro Business Review | February 6 - 12, 2012

Watchful Swiss keep investments ticking over Investors such as Holcim, Nestle and Roche are among the Swiss companies active in Romania, which managed to consolidate their local operations last year against the sharp 36 percent drop in overall foreign direct investments in the country. As for potential newcomers, Swiss companies are looking at the local metal-processing, textile and food industries, BR discovered. and TvMania.

Last August the firm invested in expanding its local product portfolio by buying Romanian company Edipresse, which publishes titles including Elle, Avantaje, Look!, Psychologies, Intamplari adevarate, Povestea mea and Lucru de mana, and holds the local licenses for Viva! and Popcorn.

∫ SIMONA BAZAVAN From the cement industry to pharmaceuticals, FMCG to media, Swiss investors have been a strong presence in Romania in recent years. An estimated 400 Swiss companies are active locally, Gentiana Avrigeanu, executive director of the SwissRomanian Chamber of Commerce, told BR. Citing the most recent data from the central bank, Marc Bruchez, deputy head of mission with the Swiss Embassy to Bucharest, told BR that Swiss direct investment stock amounted to EUR 2.02 billion at the end of 2010, down 4.4 percent y-o-y. It represented 3.8 percent of the total foreign direct investments and placed Switzerland eighth among the top foreign investors in Romania. “This 4.4 percent decrease does not reflect a general withdrawal of Swiss investors from the Romanian market. In fact, due to the adverse evolution of the Romanian economic situation, Swiss firms active here have had to adjust their investments in this country,” he said.

Being franc: Swiss investors still voice concerns about the local business environment The reasons why Swiss companies are investing in Romania haven’t changed, added Bruchez. “Romania has a lot of eco-

nomic potential in various fields of activities, like for example infrastructure, agriculture, tourism and services, and has very well educated people willing to develop those sectors. The good macroeconomic figures as well as the stability given

by EU membership make the country attractive to Swiss investors,” he said.

Unfortunately, the setbacks in the Romanian business environment also remain the same as a few years back. “The situation has not changed a lot in that respect.

Lack of juridical security, corruption and political instability are still affecting Romania’s attractiveness to foreign investment,” he stated.

Looking at what may come, Avrigeanu says that Swiss investors are showing interest in the metal-processing, textile and food industries.

Major Swiss investors on the local market include Holcim, Nestle, Novartis, Ringier, Roche, Swisspor, Rieker, the companies belonging to investor Jean Valvis, Angst, Carpatair, Franke, Heidi Chocolat, Helvetica Profarm, Ameropa, Inter-Spitzen and Sefar.

One of the most recent Swiss investments made locally came from outdoor advertising company Affichage Holding, which bought a 30 percent stake in Affichage Romania from American company Ventris, and now has total control of the Romanian office. The value of the transaction has not been disclosed. Nationwide, Affichage Romania has over 4,686 advertising spaces, distributed in over 60 cities including Bucharest, Brasov, Iasi, Constanta, Timisoara, Oradea, Botosani, Vaslui, Sighisoara and Cisnadie.

Despite poorer financial results in the past couple of years, Ringier Romania, the local division of the Swiss media company Ringier AG, previously announced that it had no intention to sell its local business.

Ringier Romania currently publishes the tabloid Libertatea and other magazines such as Unica, Lumea Femeilor, Joy

Despite the slowdown in the local construction market, one of the main Swiss investors in Romania, Holcim, managed to increase its sales of cement and clincher by 6.7 percent in the first three quarters of last year. The company has been present in Romania since 1997 and has invested about EUR 700 million locally so far, with more to come. Holcim Romania has announced that it will continue to invest between EUR 30 million and EUR 50 million yearly in its local operations.

Two big Swiss companies are active on the local pharmaceuticals market: Roche and Novartis. Roche estimates for 2011 a turnover of about RON 900 million (approximately EUR 214 million).

According to data from IMS Health, the company managed to become the top player on the local pharmaceutical market in the first 11 months of 2011, dethroning Sanofi.

The same source predicts the local drugs market will grow by double digits this year after posting a 7 percent growth in 2011.

Elsewhere, another Swiss brand present locally is Franke. Franke Romania, subsidiary of Kitchen Systems Group, part of the Swiss corporation Franke Artemis, started operations in Romania in 1998, offering comprehensive systems for domestic kitchens.

The company previously announced that it estimated a 10 percent turnover increase for 2011 to about RON 47 million, after reporting an 8 percent drop in 2010. For 2012 the company plans to further boost its sales and continue investing in opening new showrooms.

Another prominent Swiss investor active locally is businessman Jean Valvis, who has projects in the wine trade (Domeniile Samburesti), bottled mineral water (Aqua Carpatica) and the bio-energy industry (Dorna Agri) after selling the Dorna dairy business to French group Lactalis in 2008 and Dorna Apemin mineral water producer to Coca Cola back in 2002.

Also on the FMCG market, Heidi Chocolat – part of Swiss Laderach Group – managed to boost its sales by 17 percent last year against 2010, although the growth was mainly generated by exports, Erwin Vondenhoff, general manager of Heidi Chocolat, told BR. “Heidi invests approximately EUR 500,000 in our facility in Pantelimon each year. Last year a big part was invested in Heidi Chocoworld (e.n. the factory’s concept store). In 2012 we will also invest significantly in increasing our capacity as well as improving our efficiency,” he added.

simona.bazavan@business-review.ro

www.business-review.ro Business Review | February 6 - 12, 2012

12 VALENTINE’S DAY

Keeping love in the air Whether you celebrate on February 14 or 24, on St Valentine’s Day or Dragobete, the Romanian equivalent, this is a month to switch the focus from business and give in to your romantic side. For both those in love and those looking for it, here are some of our suggestions for this beautiful time of year.

∫ DANA NICULESCU

WHERE TO GO Concert: Directia 5 The band continues its tradition of spending the most romantic day of the year with its fans. Monica Anghel, Paula Seling, Giulia will make guest appearances.

February 14, 19.30, Palace Hall (Sala Palatului). Tickets cost RON 50, 70, 100, 150.

A table for two: Business Review has the lowdown on ho

Party: Valentine’s Extravaganza A new party concept, an extravaganza for free spirits, supported by an acrobatic show, will take place at the Silver Church Club. The legendary band Snap! will also perform live on the Silver Church stage. February 14, 22.00; regular tickets on sale at RON 49 and VIP seats at RON 79.

Valentine’s Day for Singles: Let’s Meet parties Singletons in the mood for finding a partner are being catered for at two parties organized by the offline social network for singles, Let’s Meet. Some 80 single people aged between 25 and 40 are invited to celebrate Valentine’s Day on February 18.

More mature singletons, aged between 38 and 60, will have their own party on February 25 to mark the traditional Romanian celebration of love, Dragobete. Let’s Meet is Romania’s largest offline social network for singles with six communities all around the country.

Reservations and details at 0748 140 781.

Anti Valentine’s Day: Club A A traditional event now on its 10th run, with music by the band Tapinarii.

February 14, from 22.00, 14, Blanari Street, tickets available at RON 10.

WHAT TO BUY Sweets Candy shops are always popular on this particular day if the object of your affection has a sweet tooth. If you have not had the chance to taste the sublime flavor of the authentic Italian chocolate Venchi, visit Caramel Lounge at 214 Calea Victoriei. On the same street, Chocolat, at 12A Calea Victoriei (entrance via Stavropoleos) has a large variety of fine cakes decorated with

fresh fruit not to mention the famous Belgian chocolate. With packaging specially designed for Valentine’s Day, Leonidas, the candy shop on 27 Strada Doamnei, has a special assortment of famous Belgian pralines in the shape of a pink heart and a big candy box full of chocolates. For up to RON 50 give your beloved a box of chocolates accompanied by a stabilized rose, a natural flower specially treated to retail its original form for almost two years.

Flowers

Bouquets of red roses are the quintessential Valentine’s Day gift but florists are ready with any kind of flower arrangements. For a personalized bouquet visit the traditional open flower market Piata Cosbuc or the Dalmi shop in Piata Amzei. The famous Iris network has several shops in the center or can be accessed online at www.florariairis.ro. A passionate master florist, Irene van der Geest is behind the arrangements of Floraria olandeza (the Dutch flower shop). One outlet can be found close to Piata Victoriei, at 11, Strada A.I. Cuza, on the corner with Dr. Iacob Felix, or check their website: www.florariaolandeza.ro.

And until late into the night, small flower stalls on street corners are there for last-minute acquisitions as you make your way home to your mate or out to meet your date.

www.business-review.ro Business Review | February 6 - 12, 2012

VALENTINE’S DAY 13

air on Valentine’s Day

wn on how to give your beloved a Valentine’s Day he or she will remember

Fairs

Market 8

A one-stop-shop to get prepared for the present exchange is the Valentine’s Day Fair at Sala Dalles. Handmade jewelry and aromatic candles, decorations made by the Tiffany method, Venetian masks and exotic creations from India, Peru and Great Britain could impress your loved one.

February 9-14, Sala Dalles.

8 Serban Petrescu A place where the art of cooking fuses perfectly with the art of living in the inimitable style of the fashion designer Venera Arapu, who mixes classic and avant-garde. For those who feel like leaving behind the excitement and noise of the city and prefer French cuisine with Asian influences, this is the place. Love is in the Plate is the special Valentine’s menu for this year, featuring salmon tartare with sweet mayonnaise (RON 36), hot shrimps, saffron risotto and beetroot mousse (RON 59), plus two heartshaped chocolate delice (RON 15) and complimentary drinks and cocktails. Reservations: 021 231 5143

Jewelry Our favorite is the Messager d’Amour pendant from the Ode to the Joy of Love collection, a Frey Wille piece. Your message of Love can be hidden in an original way, worn inside the clothing and kept safe from prying eyes. Your beloved can wear your love openly and close to his or her heart.

WHERE TO DINE La Bonne Bouche 30 Strada Franceza If you want to take a romantic stroll on the narrow streets of the Old City and then exchange romantic glances over a glass of wine in a small and intimate place, but one that is perfectly balanced in terms of space and light, then every day can become a Valentine’s Day. Still, the menu put together by the La Bonne Bouche chef for this romantic day is very specific: carpaccio beef, followed by main course of monkfish and a “love revelation” dessert (pineapple carpaccio with saffron). Prices range from RON 25 and RON 60. The evening also promises live music from a pianist or a saxophonist.

Reservations: 0731 BISTRO

La Cantine du Nicolai Strada Povernei 15-17 A cup of Cham Cham and an authentic Mille Feuilles dessert are just a few of the culinary attractions organized by Nicolai. It seems that he loves Paris so much that for one night he wants to transport us to the Lover’s City through all the flavors and refined atmosphere he has created.

Reservations: 0725 210 608

18Lounge 3-5 Presei Libere Square A splendid view gives 18Lounge, the rooftop restaurant of the City Gate South Tour (near Pullman Hotel) its place on our Valentine’s Day shortlist this year. A classic but very tasteful menu with influences from all around the globe is supported by a carefully selected drinks menu. The restaurant is large and can be used as a bar or club as well. But the big draw remains the view: 18Lounge has the best panoramic view in Bucharest. Book a table at the window and a romantic night is assured!

Reservations: 0733 501 401

www.business-review.ro Business Review | February 6 - 12, 2012

14 IN TOUCH WHO’S NEWS

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

Aura Toma will be managing director of Lowe&Partners starting this March. She is replacing Oana Cociasu, who was appointed to another position in the Lowe group. Toma has 15 years of professional experience in advertising, having previously held top management positions with several local agencies. Her background is in communication for financial services, FMCG and corporate business.

sale of distressed assets. has joined Musat & Asociatii as partner.

Her practice encompasses a broad range of real estate and construction transactions. Dobrescu has led and coordinated due diligence projects and negotiated the acquisitions of real estate pools, including advisory work on regulatory matters and authorizations.

Dobrescu is experienced in FIDIC rules with solid expertise in banking & finance.

Alina Elena Popescu

has joined Ringier Romania as advertising director. Burlan has over 15 years of professional experience in sales advertising. He previously spent seven years at Sanoma Hearst as advertising director. In the past two years Burlan has coordinated sales for all the publications of Medien Holden.

has been appointed partner at Musat & Asociatii. She combines extensive expertise in coordinating merger and acquisition deals, cross-border transactions as well as industrial and real estate greenfield and brownfield projects.

Popescu has experience in domestic and international arbitration (including ICSID procedures) as well as in the amicable settlement of high-profile commercial disputes. She holds a wide knowledge of EU acquis, having assisted an impressive portfolio of clients on various matters involving the application of EU legislation.

has been appointed partner by Serban & Asociatii. He began his career in the ’90s, at one of the Big Four companies. He later worked for several large law firms. His area of expertise covers a wide range of transactional matters, including real estate transactions, construction & public infrastructure projects and mortgage-backed securitizations.

Sebastian Ionut Cazacu has joined Serban & Asociatii as partner. He began his career as an in-house lawyer for the State Office for Inventions and Trademarks and later worked for several law firms. Cazacu litigated civil and commercial matters for a wide range of public and private clients. He has also worked extensively in restructurings and bankruptcy files, including in the acquisition, restructuring and

BUSINESS REVIEW IS HIRING Account Manager and a Senior Account Manager in charge of advertising sales and events sponsorships Account Manager Represents BR in its relation with its clients; manages and increases the portfolio of clients both in print advertising as well as event spon-

ISSN No. 1453 - 729X

Beautiful Lies

Monia Dobrescu

Cezar Burlan

Corneliu Vasile Popa

FILM REVIEW

Read letter day: Emilie hatches a plot after receiving an anonymous love note

Borrowing the star of Amelie and trying to channel the charm of that smash hit, Beautiful Lies is a very French rom-com.

Audrey Tautou’s Emilie (even the names are almost the same) owns and runs a provincial hair and beauty salon.

Maintaining her business while dealing with the painful fallout of her parents’ divorce has left her little time for romantic pursuits and she has become somewhat cold, shallow and expedient in her approach to life.

This is the very opposite of the highly educated romantic Jean (Sami Bouajila), who has left a high-status job as a UN translator for less stressful work as a handyman in Emilie’s salon.

Guess what! For reasons that can have nothing to do with her personality, Jean is in love with Emilie and writes her a beautiful anonymous love letter which his sensitive boss chucks in the bin, before realizing it could come in handy on the family front.

See, Emilie’s mother Maddy (Nathalie

Baye) is in a deep funk, still unable to deal with the fact that her husband left her four years ago. To boost her maman’s fragile self-esteem, Emilie types out the letter and forwards it to her mother, who is soon glowing with joy over her passionate and eloquent admirer.

Of course, a farcical mix-up soon leads Maddy to trace the letter to the baffled Jean, and an unintentional love triangle develops, as Emilie urges Jean to maintain the charade to protect her mother’s newfound confidence while – who would have thought? – falling for him herself.

Unlike most rom-coms, Beautiful Lies’ characters are far from perfect, which makes for a more satisfying film, even if it is initially hard to fathom what Jean sees in Emilie (apart from the fact she looks like Audrey Tautou) and why he tolerates her caprices. The plot twists are contrived and you can see where it’s all heading in the first few minutes.

But while it’s slight, the film has a light and winning charm, moments of pitchperfect French comedy and three highquality performances from its leads. And the backdrop – the gloriously sun-baked town of Sete in the South of France – adds some Mediterranean magic to the Gallic diversion. ∫

sorships; is able to take the role of Project Manager for some special advertising projects such as guides, supplements, inserts; meets targets and deadlines; knows all the characteristics of BR products and competitors’ ones and makes educated recommendations to clients.

Desired Skills & Experience: university degree; previous experience in selling advertising and/or a good knowledge of the media market; customer and results oriented, negotiation skills,

ability to complete all administrative tasks; excellent command of English.

Senior Account Manager Represents BR in its relation with its clients; manages and increases the portfolio of clients both on print advertising as well as event sponsorships; is able to take the role of Project Manager for some special advertising projects such as guides, supplements, inserts; meets targets and deadlines; knows all the characteristics of

BR and competitors’ products and makes educated recommendations to clients.

Desired Skills & Experience: university degree; previous experience in selling advertising and/or a good knowledge of the media market; customer and results oriented, negotiation skills, ability to complete all administrative tasks; excellent command of English Please send your CV to Oana Molodoi at oana.molodoi@business-review.ro

FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALIST Otilia Haraga JOURNALISTS Simona Bazavan, Ovidiu Posirca COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi ART DIRECTOR Alexandru Oriean PHOTO EDITOR: Mihai Constantineanu PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu

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Sonia Artinian has been appointed country CEO of Lafarge Romania, responsible for all of the company’s operations in Romania.

She is replacing Philippe Questiaux, who stepped down at the beginning of 2012 after leading Lafarge’s cement business in Romania for the past 10 years.

Artinian joined the company in 2008 as first vice-president in the organizational development department. Artinian has a bachelor’s degree in engineering and an MBA from College des Ingenieurs. Before joining Lafarge she was VP at Capgemini Consulting.

DEBBIE STOWE Director: Pierre Salvadori Starring: Audrey Tautou, Sami Bouajila, Nathalie Baye