Business Review Issue 40/2013 December 9 - 15

INTERVIEW: Bruno Roche, president of France’s chamber of commerce in Romania, CCIFER, tells BR that French investments are up over the past year, but the country’s legal and political situation will shape much of their future »page 9

ROMANIA’S PREMIER BUSINESS WEEKLY

December 9 - 15, 2013 / VOLUME 17, NUMBER 40

Romania’s M&A market stayed stable at around EUR 1 billion in 2013, although some dealmakers claim the market has actually decreased because big investors are still pondering local acquisitions. The financial sector has registered a surge in deals this year, while interest in the renewable industry has started to fade due to regulatory changes pages 10-13

T OUOW! N

LINKS

TRAVEL

Web sight

Beyond Borovets

There are countless paths to success.

International tech entrepreneurs in town for How to Web told BR how they went about it

Bulgaria is a firm favorite of local tourists, but few head off the beaten track. BR’s travel correspondent took a trip to the spectacular Rhodopes

» page 6

» page 18

www.business-review.eu Business Review | December 9 - 15, 2013

NEWS 3

NEWS in brief ENERGY Enel takes out EUR 200 mln EIB loan to partially fund local wind investments Enel Green Power International, the renewable arm of Italian utility giant Enel, has struck a deal with the European Investment Bank (EIB) on a EUR 200 million loan that will allow the company to finance renewable investments in Romania. The fresh loan deal follows on from funding agreements worth EUR 600 million sealed with the EIB in the last three years.The company will use

the new loan to partially cover investments in wind farms in the Banat and Dobrogea regions of Romania.

Locally, Enel Green Power operates 498WM of wind capacities and another 36MW in solar installations.

FINANCING Government plans to prolong state aid scheme for regional development The government wants to extend the submission deadline for financing requests under state aid scheme no.797/2012 in the field of regional development projects until June 30 2014, in a move to support the creation of new jobs in competitive industries.

According to a draft bill posted by the Ministry of Finance, the authorities will increase funding by RON 160 million (EUR 36 million), taking the overall allocation to RON 600 million (EUR 134 million). The government has already approved four financing agreements under this scheme worth RON 167 million (EUR 37 million), which are set to generate over 2,000 jobs. Seven financing requests for a total of RON 235 million (EUR 52.5 million) are currently being analyzed by the authorities.

HUMAN RESOURCES National Institute of Statistics: job vacancies up in Q3 y-o-y The number of vacant positions in the third quarter of the year stood at 33,000, up by 6,500 compared to the third quarter of the previous year, according to the National Institute of Statistics, quoted by Agerpres.

Over July-September 2013, the most job vacancies could be found in the services sector (2.80 percent), and

in public administration (2.13 percent). At the opposite pole, the extracting industry and the production and supply of energy, gas, hot water and air conditioning offered the least number of open positions.

The processing industry had 10,500 unfilled situations, close to a third of the total number of open positions, while the budget sector accounted for slightly above one third of all vacancies. Some 5,200 job vacancies are in the public administration, 3,400 are in the healthcare sector and social assistance, and 2,600 can be found in education.

IT SAP starts new recruitment program for Cluj-Napoca nearshore delivery center SAP Romania will kick off a new recruitment program next year it for its nearshore delivery center in ClujNapoca, where it estimates it will have 100 employees by 2016, the company has announced. The new program is

part of SAP’s strategy to expand the consultancy services the company offers in its Bucharest, Timisoara and Cluj-Napoca nearshore delivery centers.

At the moment, the firm’s Cluj nearshore center has 30 employees, 15 percent of whom are senior consultants, 60 percent are employees and 25 percent were recruited from among students.

In the first quarter of next year, SAP will again run its SAP Academy recruitment program with the aim of hiring 20 people in Cluj-Napoca.

Prospective employees must know German and have advanced knowledge of logistic processes including SCM, TM, IS-U and ERP Logistics.

LEGAL ANAF to pay over EUR 1 mln in interest on delayed VAT refund Romania’s High Court has ruled that the national fiscal agency ANAF must pay interest to a company in a case involving a delayed VAT refund. The company was advised by D&B David si Baias, the affiliated law firm of PwC Romania, the professional services firm. The team of lawyers that worked on the case comprised Dan Dascalu, partner of the law firm and coordinator of the fiscal litigation department, and Mihail Boian,

associate. ANAF will have to pay close past year, with the highest drops reto RON 5 million (over EUR 1 million) ported in central neighborhoods, while in interest for the unjustified delay elsewhere levels have remained relain checking VAT settlements, followed tively constant, according to data from by a tax audit that aimed to solve real estate portal Imobiliare.ro.

Rents of studio apartments the settlements.

The Bucharest Court of Appeal located in Bucharest’s 1 Mai area had initially accepted part of the fell by 7.1 percent over the past year, company’s case, ordering ANAF to marking the biggest decline in pay RON 2 million (EUR 450,737) in this category. The average monthly interest, a decision that was ap- rent for a studio apartment in this neighborhood now stands at EUR pealed.

Lawyers at D&B David si Baias 260.

The second highest drop – 6.3 perbased their arguments on the jurisprudence of the European Court cent – was reported in the Dorobantiof Justice, which says that, as a rule, Floreasca, area where the average the internal procedures of tax au- rent is EUR 300 for a studio. The only thorities that result in a delayed VAT “low-cost neighborhood” where rents refund should not deprive the tax- have fallen over the past 12 months payer of the interest on the outstand- was Berceni – down by 4.3 percent to a EUR 220 monthly average. ing sum.

Elsewhere, rent levels have remained relatively stable over the past 12 months, but there were also increases in neighborhoods such as Militari (up by 8.3 percent to EUR Bucharest apartment rents 249 per month), Drumul Taberei continue to fall in central areas (up by 4.5 percent) and Titan (up by Bucharest rents have fallen over the 4.3 percent).

PROPERTY

www.business-review.eu Business Review | December 9 - 15, 2013

4 NEWS

BUSINESS AGENDA December 9 17:30 ∫EVENT Business Review organizes the first Romanian Investors Forum, an event dedicated to the Romanian companies and entrepreneurs that have stood out on the local market or abroad at Pullman Hotel. The event includes a session of discussions and presentations, followed by a ceremony and a networking dinner. Registration is open. Find out more at www.business-review.eu/br-events 10:00 Dent Estet organizes an event to mark the launch of a new clinic for children at its HQ in Bucharest. By invitation only.

18:00 ∫EVENT Business Review organizes the fifth French Investors Forum, which aims to present the main contributions of French players to the local business environment, at Pullman Hotel. Registration is open. Find out more at www.business-review.eu/br-events 18:30 FAN Courier organizes a press conference to outline its business plans for next year at Casa Universitarilor. By invitation only.

December 11 08:30 AmCham Romania and Aversa Manufacturing organize a conference on Romania’s reindustrialization, at Athenee Palace Hilton Hotel. By invitation only.

WEEK in numbers

42% of Romanians were at risk of poverty or social exclusion in 2012, according to Eurostat. Romania reported the second highest share of individuals at risk last year, after Bulgaria, according to Eurostat, the statistical office of the European Union

EUR 2.35 bln the amount attracted by Romania this year in EU funds for agriculture and rural development, according to agriculture minister Daniel Constantin.

The target for 2013 is EUR 2.5 billion, which the minister says could be surpassed

Photo: Mihai Constantineanu

December 10

IMAGE of the week Tanks for the memories: 2,000 soldiers march to mark National Day Over 2,000 soldiers took part in the December 1 parade, celebrating Romania’s National Day. The Romanian troops were joined by 140 soldiers from France, Poland, Turkey and the US. Around 200 items of military equipment passed through the Triumph Arch in Bucharest, while 35 planes flew over the area, according to Mediafax.

TELECOM

Vodafone Romania boosts 4G investments, starts store franchise program

T

elecom operator Vodafone Romania has announced the start of its store franchise program, for entrepreneurs considering entering the mobile communications business.

The company currently has a total of 610 branches, of which 200 are Vodafone shops and 410 belong to its exclusive dealers. Currently, there are seven franchise stores and another six will be opened by the end of the year.

“We have franchises in Iasi, Cluj and Bucharest. The first franchise to open in Bucharest is located in Progresului Square. By the end of December, we will open another franchise in Bucharest in Veteranilor Square. We would like to keep the same number of branches that we have now, about 600, but fewer of them will be Vodafone stores, as we want some of them to become franchises,” Alexandru Baloi, director of indirect sales at Vodafone Romania, told the media.

The company will continue to run the larger outlets, which cover 100 sqm and have up to 20 employees. The franchise system mainly

involves smaller branches of up to 35 sqm.

“We propose the locations and look for franchisees. They can come with their own space as well, but we invest in it so that the look and feel of the store respects standards,” said Baloi.

Franchisees will have access to the known-how, applications, systems, image standards and staff training programs offered by Vodafone. The operator will also cover the costs of furnishing the shop.

In turn, franchisees must pay a tax to have access to the system, and cover the product stock and the employees’ salaries.

Vodafone will be supplementing investments in Romania over 20142016 by an additional GBP 45 million (EUR 54 million), which will mainly be used for the development of the 4G network, announced Inaki Berroeta, CEO of Vodafone Romania.

This added investment comes as a result of Vodafone’s sale of its participation in Verizon Wireless.

At the beginning of September, the operator agreed to sell its 45 percent

stake in Verizon Wireless to Verizon Communications for USD 130 billion in cash and stock, in what the US media labeled one of the most expensive acquisition deals ever.

Vodafone’s main strategic directions in Romania include investments into the development of the 4G network, the store network and the fiber optic backbone, according to Berroeta.

Vodafone’s annual investment budget in Romania stands at around EUR 100 million, but the EUR 54 million will represent new capital inflow which is supplementary to the annual budget announced by the operator.

The company has also revamped its outlet in Baneasa Shopping City, which now has a new visual identity in accordance with the design trends adopted by the company. ”The Vodafone store in Baneasa is in the top three for smartphone sales,” said Andrea Rossini, director of the consumer business unit at Vodafone Romania.

On September 30, Vodafone Romania had nearly 8.3 million customers. ∫ Otilia Haraga

www.business-review.ro Business Review | December 9 - 15, 2013

NEWS 5

RETAIL

PARTNER CONTENT

Cora launches local drive-through service

R

omania Hypermarche, the company operating the local Cora hypermarket chain, launched last week the first local drive-through service.

Allowing customers to order their shopping online and then collect it from the store, the service is currently available only in its Lujerului hypermarket in Bucharest. The target for the first year is for the service to generate some 5 percent of the hypermarket’s turnover and for the average receipt value to be 40 percent higher than the regular instore spend, said Claudia Mirica, the general manager of Cora Lujerului.

Should the results be positive, the service will be made available in other Cora hypermarkets in Cluj, Arad, Bacau and Baia Mare, she added, without offering a concrete expansion timetable.

Until then, the retailer plans to launch home deliveries in the first half of 2014.

While the service (coradrive.ro) marks a first for the Romanian market, in France it is available in over 2,400 locations. There is one such service for every 50,000 Paris inhabitants and Cora itself provides a drive-through option in 56 stores across France. Now it hopes to replicate this in Romania, by targeting some 380,000 of its more than 2 million customers who regularly shop online, said Mirica.

Customers shop and pay for their

goods online and choose a time slot when they want to pick up their groceries by car. The minimum order is RON 50 (approximately EUR 11.25) but the average order so far has been RON 150 (about EUR 33.6). Shoppers can choose from over 8,000 products, with the number set to go up over the coming period, added Mirica. The Cora drivethrough in the Lujerului hypermarket has seven employees.

Cora’s announcement comes after Carrefour Romania became the first major retailer in the country to launch an online store in July. Although local online grocery sales are very low at present, the retailer predicted that over the next two or three years Romania will “burn phases” and their share of total grocery sales will surpass the average of Western European markets.

Carrefour estimated this share at about 1.5 percent in July.

Cora operates a network of 12 hypermarkets in Romania. This July the company opened the EUR 51 million Cora Bratianu shopping center in Constanta. The 50,000 sqm retail project is anchored by an 8,600 sqm Cora hypermarket. In September, the firm opened another hypermarket in Ploiesti following a EUR 6.1 million investment. ∫ Simona Bazavan

WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro

Roxana Tisaianu

is the new commercial director of Danone Romania.

She will also act as development manager for the Republic of Moldova and the Adriatic countries. Tisaianu is returning to Romania after having worked for the Danone Group in ten different countries. Before working abroad, Tisaianu coordinated the trade marketing department of Danone Romania and the proximity and major client sales teams. She graduated from the Faculty of Economic Cybernetics, Statistics and Informatics, part of the Academy of Economic Studies in Bucharest.

Igor Tikhonov

will be the new president of Ursus Breweries, the Romanian subsidiary of SABMiller, starting Janu-

ary 2014. Tikhonov has previously worked as managing director of SABMiller Slovakia. He began his professional career in 1993 working for Mars, where he held various management positions in the Russian Federation and several CIS countries (Ukraine. Belarus and Kazakhstan). He joined SABMiller in 2001 as sales director for the Russian Federation.

Melania Hancila

is the new manager of the strategy and operations team at Deloitte Romania. She has been working for large financial institutions in Romania for more than ten years.

Hancila has previously worked at the Financial Supervision Authority (FSA). She was also head of the research and strategy department at Volksbank Romania.

An Era Ends in Telecommunications; And a New One Begins

by John Gole, Program Director, Telecommunications, IDC UK apps like Skype and WhatsApp allow

Despite continued challenges for the Romanian telecoms industry, 2013 has marked a pivotal point in its evolution. Until this year, the market has been voice-dominated.

The fixed-line market had long ago shifted from voice services to broadband and TV, but that is because voice services largely migrated to mobile networks, where prices were even higher. So for many years, though other services captured attention, it was mainly mobile voice that paid the bills.

This mobile voice dependency long ago became a problem. Revenue from the service peaked in 2008, when it reached $2.2bn and accounted for nearly two thirds of telecoms service revenues (excluding TV). And it has been declining since, dropping to a forecast $1.6bn this year, and falling to 49% of the total telecom service revenue, or only 43% when including pay TV services.

With that decline firmly in operators' minds, it has long been clear that the market must shift to a datafirst structure, but it has been unclear how to get there.

The operators have maintained a two-pronged strategy: Defend voice pricing as long as possible, for example by lobbying to retain regulatory protection for high wholesale voice termination rates; and build for the future, by upgrading mobile networks to improve data services, and entering adjacent markets, like cloud services for enterprises and content services for consumers.

As customers have increasingly adopted data services, this position has become untenable, because

customers to evade the high voice and SMS tariffs, using the much lower cost-per-bit pricing of the data networks. Furthermore, this approach has become counterproductive. By retaining the high wholesale voice pricing, it prevented an operator from bundling large amounts of voice into a data service plan. Now that the regulator has cut wholesale rates dramatically, it actually frees the operators to transition to data-first prices. That is exactly what we have seen this year, as the mobile operators launched tariffs based on large data allowances, with flat-rate voice and SMS bundled in.

This transformation of pricing schemes must be a breath of fresh air to the operators. After long resisting voice price cuts, and fearing the threat of over-the-top apps like Skype, they now have a pricing model that can scale into the future, that aligns their interests with those of the regulator, and that establishes a symbiotic relationship with the apps. Now, rather than fearing the apps, the operators benefit from the mobile usage that they stimulate.

Looking forward to 2014, the outlook is improved, but far from rosy.

Some key concerns remain. Customers are very price sensitive, and the economy continues to produce headwinds. Furthermore, operators are in a highly competitive business, in which it remains hard to differentiate. Network coverage and service quality could be differentiators for a few years, ensuring that the arms race in mobile capacity should be fierce. Over time, though, gaps will narrow, and price competition on potentially a commodity service will resume. Will the operators be able to differentiate through unique content? Bundles of fixed and mobile services? IT and cloud services for enterprises? Machine-to-machine communications? The operators will continue their new twopronged strategy: migrating customers to data tariffs, and trying to build up alternative revenue streams. The battle is far from over.

www.business-review.eu Business Review | December 9 - 15, 2013

6 LINKS

International entrepreneurs talk tech in Romania From games to cloud computing, from developing software for a global giant to setting out alone into the unknown to make it big as an entrepreneur, tech specialists at How to Web shared their stories with Business Review. Some of them already have ties to Romania, and have been looking out for local talent and opportunities. For others, it was something new to be here. Their stories are all different, proving there are countless paths to success. ∫ OTILIA HARAGA

Thomas Hartwig co-founded King in 2003 and today is chief technology officer at the company, which is behind some of the most successful games on Facebook and the global mobile hit Candy Crush Saga. He has led the technology organization from a small team to a group of developers across five sites in Europe. As of 2011, King has an office in Bucharest.

Simon Stewart is a software engineer at Facebook, also being the creator of WebDriver and a core team member at Selenium. Business Review talked to Stewart to find out how he was recruited and what a career at Facebook looks like. He is based in the London office and is mainly working on end-to-end testing tools and infrastructure, with a focus on Android.

both in terms of development efforts but also with QA capacity. Many of our Bucharest employees have worked for longer or shorter periods at our other studios.

Courtesy of How to Web

What type of games is King.com working on right now? Why do you focus on Facebook and mobile games?

We are focusing on building out our games portfolio with more casual games titles. We’re following our strategy and focusing on publishing our games on the most viable social networks, such as Facebook. We will continue to focus on mobile and Facebook since our games are very suitable for these platforms and their audiences.

What can you tell me about King.com’s Bucharest office? Why have you decided to open a studio here?

We try to identify locations where we can find really awesome talent. For Bucharest in particular, we found Mihai Sfrijan as head of studio. He was a perfect match in terms of skills, network and culture. For King it’s very important to find cultural champions.

Bucharest has proven to be a very tech-savvy world city where we can find really strong and competent programmers and QA (quality assurance).

What games are you testing and developing here?

We are developing the world’s largest “bubble-shooter” in Bucharest. We are also developing a new title here.

Which of the top King.com games were made with the input of Romanian testers and developers?

The Bucharest team has contributed to the success of most of our games

I’m also a contributor to our build tool, Buck, which is used by all our Android engineers.

One of the common misconceptions about Facebook is that we only work in PHP. Most of my day-to-day work is actually done in Java and IntelliJ, a combination that I’m really familiar and comfortable with.

What’s the difference between developing a game for a social network in comparison with one for a console or PC? I think the main difference is that the production times are much shorter.

We have the luxury of releasing a minimum viable product and iterating into perfection. That way is hard when you ship boxed games.

How does the development of the game work, and how are ideas pitched?

We have an open process within King.

Everyone can submit a game idea and pitch to our creative team. We also host internal game jams every year, where basically the whole company goes away and programs new games for 24 hours.

How do you monetize the games you create for Facebook or mobile?

We publish our games using a freemium model. That means that it’s free to install and start playing the game. Throughout the game we give players the option of buying powerups or helping themselves to progress throughout the game more quickly and easily. There is no forced payment in our games.

You started King.com from scratch.

What advice would you give a Romanian entrepreneur who wishes to start a global game developing company?

I believe that finding the right talent in the initial team is crucial. When the team is small this is super important.

As you grow, you need to focus and pay attention to detail. Delivering a high quality product is the only thing that matters. One more thing I’ve seen is that many companies focus solely on the perfect technical platform but forget the business side, or vice versa. It’s about finding the right balance between tech and business.

First of all, how did you come to work at Facebook? How were you recruited?

A friend of mine joined Facebook a few years before I did. He kept telling me how much fun he was having, and he seemed pretty happy there. Over the years, more and more of the people that I liked to work with and respected either interviewed there or joined; it’s always nice to work in a place with people who you know are great.

When I was told that Facebook was opening an engineering office in London, I happened to be at a point in my career when I was trying to decide what to do next. I felt that it made sense for me to interview there, if only to get a feel for my options. In the end, the people that I met, the scale of the work that they offered (1 billion people can see the code you change!), and the size of the company were all very appealing. My final set of interviews was with an amazing group of people, including Kent Beck and Jason Evans, two engineers I have a lot of respect for and knew by reputation. It was challenging, but I found it to be a lot of fun.

What exactly do you do there? What kind of projects are you working on?

I’m part of the internal tools team in the London office. My focus is on developer efficiency and effectiveness, particularly on mobile. My main project is to work on our end-to-end testing tools and infrastructure, and I’m focusing on Android most of the time.

What is different about working for Facebook compared with the other companies you have worked for?

I’ve been fortunate enough to work for several companies that are engineering led, and Facebook is the same.

One of the sayings here is that “code wins arguments”, and I love the speed at which we take an idea, code it up and then gather data to help determine whether a change is beneficial to people. That’s easy on the web, since we push a new version of the site twice a day, and it’s been really interesting for me to see how we’ve been attempting to get something similarly flexible for Android. So, the speed at which we move is one of the big differences.

I’m the lead of the Selenium project and the creator of WebDriver, so Open Source is something I care passionately about, and Facebook also cares. I’ve really enjoyed watching us release so much of our code as OSS, and I’m even more pleased to see contributions and pull requests from the community be accepted into those projects.

The two projects I’m following most closely on there are Buck (the Android-built tool that I work on sometimes), and xctool, which aims to make builds on iOS as fast and efficient as possible.

Is this your first time in Romania?

Yes, I’ve never been to Romania before. There are plenty of Romanian software engineers in our London office, so I’m going to be asking them for tips and advice before I hop on the plane over here. Given how bright and fun my colleagues from here are, I expect to have a great time in Romania!

www.business-review.ro Business Review | December 9 - 15, 2013

LINKS 7

Michael Levit is managing partner of Founders Den exclusive co-working space in San Francisco, as well as co-founder of Spigot.com, a company with Romanian employees. Prior to that, he was co-founder of the Vendio e-commerce platform, which was taken over by Chinese giant Alibaba. His professional and personal experiences are closely knit together.

Paul Ford, vice-president of ecosystem development at SoftLayer Technologies, which was recently taken over by technology giant IBM, speaks about his entrepreneurial journey so far and the experience he has gained as co-founder of SoftLayer’s Catalyst global startup incubator program. Among the startups admitted into the program, a few are Romanian.

Founders Den. We did one big acquisition at about the same time I had my second child. My business partner jokes that I need to have more children because great things happen for us then!

We have some hubs for entrepreneurs in Romania. What makes Founders Den different?

About three years ago, we had just sold our company to Alibaba. I was leaving and wanted to start a new company – in fact we were buying some of the things out of our old company from Ali Baba.

So we got this new business, myself and the co-founder, who is the former CEO of Vendio. Vendio was a big business; it was doing USD 1.4 billion in sales.

The problem I had was this: there I was starting my fourth business, and while I was doing it, I also had my first child. I wanted to be around other people who started businesses. One of my friends, whose wife was pregnant as well, had a similar idea, so eventually four of us thought: let’s start an office.

Originally we were thinking: this will be something for 10-20 people, and we looked around for space. This was some years ago and there weren’t great coworking options. There were some, but mostly for people who were 22 and wanted to stay up all night and drink Red Bull. But for the four of us, who were in our late thirties, early forties, that wasn’t the right fit. That’s how Founders Den was born. We found this one space which was actually divided.

One area is a working space and the other is dedicated to networking.

How many entrepreneurs work from Founders Den? We have about 50 people at Founders Den working at any given time. We do six-month leases. We lease them the desk, the chair, access to a printer and access to a series of events. For us, it’s all about creating a community.

What are your plans for Spigot?

With Spigot, we are mid-stage and we are coming up to 35 employees now. We have tens of millions of USD in revenue, so we are quite profitable. Spigot is now about three years old, the same as

Tell me more about how the acquisition process went...

Normally what you do is go to a venture capitalist and say, “Here’s our business, here’s our plan, can you give us money in exchange for stock?” But we had a great business and we didn’t want to give up stock. So, rather than pitching for venture capital, we pitched for debt.

We asked banks for a loan – a very different model, not typical in Silicon Valley. We had to pitch to a lot of banks, but ultimately Spigot is very profitable and the company we were buying was also.

We bought a company called Vuze, officially called Azureus. We took a loan where we had to repay the money over three years. I’m proud to say that, as of last month, the money is repaid – we paid it off in 13 months!

How many employees do you have at Spigot?

Right now we have between 30 and 35, most of whom are in Bucharest. From a formal perspective, we are a company based in Nevada. But from a logical perspective, we are a Romanian company which happens to have some functions in the US. We started off saying: we’ll hire some developers in Romania. We had a connection with a CTO- our former director of engineering from Vendio, whom we brought in as CTO for Spigot- who then hired a variety of people. But we still defined our product in the US. We had a head of product and we decided to hire another product person to work for our head of product in the US. We hired him from Yahoo, but then Yahoo offered him a double promotion to go back. So we thought we’d have to hire someone else in the US to replace him. Meanwhile, while we were waiting, the lady we had hired in Romania was doing the job. What we found was that with the interaction of the product person sitting next to the developer, we actually got much better efficiency. We said, “Why would we want to hire someone in the US when it’s working better in Romania?” We are really fortunate; our head of product went to school in the US but was born in Romania and returned home to Romania. That’s what’s beautiful about Romania, this blend of practicality while still being cost-efficient. The team in Romania is made up of 25 people in total.

You are currently VP of ecosystem development at SoftLayer. What exactly do you do?

What I did over the last three years was create our startup program, Catalyst. We built our business on earlystage developers, very scalable early stage companies like Tumblr and Dropbox. Firstly, we give startups credit on our infrastructure for a year.

Secondly, we help them with the technology. Thirdly, we help them with some marketing. We do all three things at the same time; we take a very holistic approach. We have helped about 1,000 companies from across Europe, Asia, North America, South America, Australia. We even have several startups from Romania in the program. Part of our team is based in Amsterdam so they are down here all the time.

What are the most important entrepreneurial hubs in Europe right now?

Well, it’s an evolutionary process.

When people think of Europe, startups and the tech scene, they think of London. But the London tech scene took five years to get to where it is and it’s still a year and a half or so behind what’s going on in the US. And in Germany, in Berlin, what’s happening is really cool now, but it’s pretty recent as well. The French startup scene is just really coming into its own. We’ve seen a lot of growth in the Nordic cities such as Helsinki, in Tallinn (Estonia), and parts of Russia.

The next wave, I think, is this part of the world – Romania and Southern and Eastern Europe have been such a hub for outsourcing for a long time.

There are great coders here, and have been for a long time. But what we have seen happening over time is that the same coders think, “Hey, why do I need to work for an outsourcing company? I can make my own technology and create something here,

whether it’s for the Romanian economy or globally.” It can be anywhere these days. We really started looking at this area around this time last year, and we’ve just seen it grow and evolve. Romania particularly has gotten to the point, over the past six months, where we are investing time and money to really be part of the scene. Early on, I saw a lot of cool stuff in the gaming space in Romania.

But now we’re seeing more application-type of things happening, gateway systems, a security-type environment. All of the same stuff that is happening everywhere else is really starting to come into its own here in Romania.

What has changed at SoftLayer since it was sold to IBM? Strangely, not much. You never know what’s going to happen when an acquisition like this takes place, but the transition team from IBM has been amazing to work with. It’s still early; we officially become part of the IBM family in January.

Would you consider doing something else?

I’m happy doing what I’m doing right now because IBM puts us in another league.

At SoftLayer, we have 13 data centers, 11 in the US, one in Amsterdam and one in Singapore. I believe we have up to 23,000 customer companies and we are hosting something like 200,000 domains.

SoftLayer has no contracts. We have companies on SoftLayer that spend millions of dollars a month with us and we have no contract. We believe we have to earn their business every single day, because early on we had to bootstrap SoftLayer.

No one believed we could do what we said we would do, and it was very difficult to get funding. So the ten founders bootstrapped the company, because they believed in what they were doing. Because of that, we had to be very focused on customers, investing every dollar back into what we were trying to build. Early on, when they decided to form the company, they could not get the investments, so we used friends and family’s money, credit cards, family’s mortgaged houses, just to get this thing going. I don’t think the founders got a paycheck for over a year. Failure was never an option for us. otilia.haraga@business-review.ro

www.business-review.eu Business Review | December 9 - 15, 2013

8 FRENCH INVESTMENT

French pledge higher investments with right infrastructure in place How Romania is perceived in France continues to be different from the perception French companies already doing business here have of the local economy. A regional forum to be held this February in Bucharest, attended by around100 French firms, is aiming to change this, Philippe Garcia, director of the economic mission Ubifrance Romania, told BR. ∫ SIMONA BAZAVAN

Photo: Mihai Constantineanu

What can you tell us about the regional forum Ubifrance will be organizing in February? Why in Bucharest, why now, and what will the main discussion topics be?

The business forum that we will hold on 11 and 12 February 2014 is meant to attract French firms. We are targeting 70 companies from France and 30 French subsidiaries here. Our main target is to promote the French offer in the SE European region, from Slovenia to the Republic of Moldova, the ex-Yugoslavian space, Greece and Bulgaria.

We expect about 150-200 Romanian firms and 100-150 local companies from across the region to come to Bucharest for the forum.

The idea is also to focus on what is an unknown, unconsidered region in France. French companies are currently attracted by big, emerging countries, sometimes without considering that close to France there are emerging countries. We want to make this area better known to French companies and our goal is to make businesspeople see Romania as a land of opportunities.

Why in Romania? Our purpose is to highlight a different side of Romania than the usual focus of the French media or opinion formers on the usual topics. We chose to organize the forum here to show France and the business environment, through the Ministry of Foreign Trade which will attend the event, that Romania is a business country, with great opportunities, rather than being the country that we think it is in France. So we want to change the French perception of Romania.

The presence here of some 70 French companies is a very good vector to promote Romania as a real business destination. French business people coming here are pleasantly surprised by what they find and when they go back to France they promote Romania. Their feedback is positive. We calculated the time between the first and second visit, and they come back in less than two months on average, which is excellent.

Why now? Because we believe we are in a transition period from a phase which we can call “end of crisis”. We feel it and the French businesspeople here have started to feel the return to sustainable GDP growth.

We recruited companies according to the needs and potential of the Romanian and regional market, so the event will focus on infrastructure,

transport, health, agriculture and IT. What were the biggest French investments in 2013?

Let’s speak about 2012 and 2013 as this period coincides with the end of the crisis. The main investments were in the sugar industry; Tereos bought a big sugar factory in Ludus. Another big investment was the takeover of Real by Auchan. I would say that the main French investments in Romania have already been made, mainly over 20002008 and even though no major French investments have been made during the crisis, please bear into mind that no French company has left the market either.

In the past few months, the main investments went into developing existing companies, modernization and environmental protection. I would mention here Lafarge, which invested EUR 20 million in environmental protection equipment at its Medgidia factory. Hutchinson also invested EUR 2.5 million in a production line for Airbus, an extension of the industrial site in Brasov, and over 200 new jobs were created as a consequence. So I would say that lately, French investments have been made in strengthening companies’ presence in Romania. It is a signal that French businesses are reinforcing their presence here, they did not leave the market and they believe in Romania!

What are Romania’s strong points compared to other regional markets when it comes to attracting French investors?

Has this changed over the past couple of years?

There are several strong points. I will mention firstly the size of the market,

20 million consumers. Being part of the EU is a plus, as it gives confidence to investors. Human resources skills in engineering, IT and many other sectors are highly appreciated by France.

Stability for investments is also important, and I am saying that within the global context, Romania is very, very stable. Romania also enjoys a fair geographical position which will allow it to become a hub to approach other eastern markets (Russia, Ukraine, Turkey). At the same time, it could become a hub for the Eastern European region, especially for the automotive industry. There are nine car manufacturers in Poland, Hungary, the Czech Republic, Slovakia and Romania, so your country could become a production hub for the automotive industry.

France and Romania also enjoy excellent inter-governmental links, with the signing of the “feuille de route” for strategic partnerships between our prime ministers in February in Paris.

What interests French investors about Romania has changed. In the years following the revolution, Romania was considered a low-cost country.

Now it is considered a real country and investors are coming here because there is a market and a highly skilled labor force.

In addition to that, more and more companies are migrating back from China to Europe, closer to their natural markets, and they almost make the choice of Romania; I’m talking here mainly about the manufacturing sector.

To what extent is the present volatility of the Romanian political and legal scene affecting the country’s capacity to attract more French investments?

The stability of the country has to be measured over a long period and regardless of some slight political instability compared to what happens in other parts of the world. We witness very slight legal changes and very slight fiscal ones. Are we speaking about 1.5 percent of patrimony to finance the development of infrastructure? This seems to be a good idea. The present volatility does not affect the country’s capacity to attract more French investment.

What are the top five complaints French companies make about doing business in Romania and what are their suggestions to address them?

The lack of infrastructure – highways and roads – is definitely a matter of

concern to French investors. This is the first topic debated by French businesspeople while looking at investing in Romania. They also complain of too much bureaucracy, but we have seen an improvement lately from this point of view. I would also mention the country’s incapacity to promote its own real image abroad; sometimes we feel that we are doing the job instead of them. Then there is the incapacity to attract and spend EU funds. Last but not least, French investors complain about the delayed payments from the Romanian state in some sectors, pharmaceutics for instance.

Do you expect an increase in French investment projects in Romania over the coming years, and what does this depend on?

We are definitely expecting a lot of new investments because we feel that the potential of Romania has not been exploited properly. The main fields are agriculture and infrastructure. Our capacity to attract new investment is directly linked to the government’s capacity to build infrastructure (transport infrastructure mainly) in accordance with Romania’s status as a big European country. Today the infrastructure is not befitting of a big European industrial country. Investors are still reluctant to come here because of this major issue.

We expect a lot of investment in mass market retail and luxury. We believe it is not normal that in a country like Romania there are currently only two or three luxury brands, so we are working to bring more, and we strongly believe that many of them will come in the next few years.

How much did French-owned companies invest locally last year and how does this compare to the previous year?

What are the estimations for 2013?

We don’t have the official figures.

However, France’s total investments in Romania amount to EUR 7.2 billion and the level is not decreasing, but growing. Total foreign investments in Romania stand at about EUR 59 billion and France accounts for 12 percent. We are more investors that suppliers. For France, Romania is more a land of investment than a country for exporters.

We are working a lot on the automotive industry, as we believe we can bring many more original equipment manufacturers to this market. simona.bazavan@business-review.ro

www.business-review.ro Business Review | December 9 - 15, 2013

FRENCH INVESTMENT 9

Low taxes continue to lure in French investors

PARTNER CONTENT

Interview with

Dana GRUIA DUFAUT, Attorney at Law at the Paris and Bucharest Bars, Founder of the GRUIA DUFAUT Law Office ket and reduces Romania’s attractiveness towards foreign investors. The taxation of special constructions mainly affects sectors experiencing economic growth during this period, such as energy and agriculture, and the new excise can affect the whole economy.

Nevertheless, Romania’s main issue is not taxation (Romania has, though, one of the smallest taxes in Europe), but the lack of predictability and the untimely and extremely frequent changes.

Bruno Roche, president of the French chamber of commerce in Romania, CCIFER, told BR French investments have gone up over the past year, yet future developments depend on the progress of the Romanian political and legal scene and regional economic trends. culture, responding to the challenges of food security, the sustainable use of natural resources and economic growth.

Courtesy of CCIFER

∫ SIMONA BAZAVAN What local industries would you recommend to a French company interested in investing in Romania?

I would say that the areas of interest to French companies are agriculture, energy in general and energy efficiency in particular, automotive and healthcare, which is now in full development, and the shift to digital TV, but also road and motorway infrastructure, which I find not only important, but to be a vital condition for Romania's economic recovery.

The CCIFER has recently launched a white book on agriculture. Why agriculture and what are the top five proposals you've made?

Because agriculture is such a key area to French investors, it is natural that we should draw up such a document in order to state the reality and make proposals for future developments. This is the reason why the 29 proposals contained in the White Book on Agriculture center on the promotion of a land fund performance, dynamic agricultural enterprise, a facilitated economic management feature, an educated and competitive workforce and an innovative and cost-effective research sector.

These proposals are intended to facilitate and encourage investments and promote sustainable and modern agriculture, in agreement with the European Commission, which will propose, from 2014, a new partnership for agri-

Is Romania still an attractive destination for French investors?

From the very start, I would like to stress that French investments are made for the long run. Also, despite the recession, no French company has decided to leave Romania. These two elements combined are without doubt proof of a long-term commitment governed by the responsibility of French investors. Nonetheless, Romania has its own special attractiveness that is not likely to run out in the near future.

What perception do French companies have of Romania?

French investors know that Romania is the second biggest market in Central and Eastern Europe and serves as a competence reservoir in many fields that are interesting to investors. This, plus a still relatively low fiscal burden compared to neighboring countries, and Romania’s strategic position in Europe, place it among the most favored destination for French investors especially.

To what extent do you expect an increase in French investment projects over the coming years?

Depending on the volatility of the Romanian political and legal scene and, more regionally and also globally, on the economic crisis, I would say that French investments will continue to increase. To what extent, time will tell.

How much did French-owned companies invest locally last year?

In September 2013, the Romanian Trade Register contained 7,518 companies with French investment, up 428 on the same period of last year. Of these, about half are currently active, generating more than 100,000 jobs. It stands to reason that French investors appear to be present in all major economic sectors.

At the end of 2012, France had an investment stock amounting to EUR 5.27 billion and an 8.9 percent share of total foreign investments in Romania compared to EUR 5.04 billion and a share of 9.1 percent a year before. simona.bazavan@business-review.ro

How did French investments fare locally this year? What expectations do you have for next year?

First of all, I would like to remember that the forecasts for this year were moderately optimistic, given the worldwide economic situation and especially the European one. As regards French investments in Romania, as for all the other companies present on the Romanian market, it is difficult to generalize, there are companies experiencing economic growth having a better year than anticipated, but there are also companies suffering losses and which have decided to withdraw from the market or are seriously evaluating the opportunities of continuing their activity on the Romanian market. The most recent statistical data reveal that in 2013 Romania has recorded an economic growth, 2,7% in the first nine months and 4,1% in the IIIrd trimester (focused mainly on agriculture). These figures provide a positive signal for 2014. However, direct foreign investments continue to decline, also in the context of certain public measures and policies that have discouraged certain investments (for example, in the renewable energies sector, the taxation of special constructions etc.) and of the low absorption of European funds, which could have experienced an improved economic growth . France was and still is one of the major investors in Romania. More than 3.000 French companies have invested here and 38 of the largest 40 companies composing the CAC 40 quotation of the French stock market are present in Romania! The French Chamber of Commerce, Industry and Agriculture in Romania has over 400 members. French companies still wish to be able to invest in Romania as much as possible, given the proximity of the two countries.

How did the tax changes Romania underwent this year affect French investors?

During this period, any increase of taxes affects those present on the mar-

What are some of the incentives French investors have for investing in Romania? Did they change over the years?

During my approximately 22 years of activity on the Romanian market, foreign investors, including the French ones, have received numerous incentives and benefits. But the main issue regarding these incentives and benefits has been the same as for the tax changes: the unpredictability and the untimely and too frequent changes.

Therefore, it was often that an investor received an incentive that was subsequently withdrawn or reduced during the investment… A recent example in this respect is the modification of the green certificate scheme for renewable energy. All these changes determine investors to mistrust Romania as a rule of law and as a partner, with consequences over time, which are becoming more and more acutely visible within the context of the global crisis….

What would you advise a French company looking to invest in Romania?

First of all, it is important to possess a good knowledge of the market difficulties (bureaucracy, corruption, false friends, “les faux amis”, as the French say, the different mentality - “It works like that too” “Merge si asa”…)… not knowing the market and its particularities can lead to failure… BUT Romania is a market with a huge potential, offering a highly skilled and trained labour force, especially in the technical domains, where the West has an important deficit, an important sale and consumption market. Moreover, it needs foreign investments in all sectors: road and railway infrastructure, energy, agriculture, tourism, and I’m only mentioning the most important ones. There is still much to build here and for many years to come. So yes, Romania continues to offer opportunities to foreign investors.

www.gruiadufaut.com bucarest@gruiadufaut.com.

www.business-review.ro Business Review | December 9 - 15, 2013

10 DEALS OF THE YEAR

Financial deals predominate on wait-and-see M&A market Romania’s market for mergers & acquisitions (M&A) has remained at around EUR 1 billion in 2013, driven by deals in the banking and renewable sector, although big investors have held back and are carefully planning moves for next year, say deal makers.

focusing on core versus non-core business or withdrawal from certain markets/segments by international as well Falling foreign direct investments (FDI), as domestic businesses, should support which lost 10 percent to EUR 1.5 billion a larger volume of smaller transactions, in the first three quarters, reflecting the but such activity is somewhat concontinued European economic uncer- strained as equity requirements in tainty, are making domestic consolida- transactions have increased substantion activity more prominent, suggests tially, resulting in caution,” commented Hein van Dam, partner in charge of fi- van Dam. Both Citi and RBS sold their retail nancial advisory at the professional banking arms in Romania, while Polish services firm Deloitte Romania.

“This is particularly evident in the Getin Holding took over Romanian Inbanking sector where several smaller ternational Bank, a small lender that transactions have been concluded in was short on capital. Ing Lease Romania 2013. However, Romania remains ‘over- offloaded part of its portfolio to Raifbanked’ relative to the size of the mar- feisen Leasing, while French Insurer ket and consolidation is long overdue,” AXA exited Romania after selling its the Deloitte partner told BR. He says the loss-making operation to Astra Asigufinancial and banking sector was the rari.

“For 2014 we expect transactions inmost visible, although other fields such as IT, agriculture and manufacturing volving consolidation in the banking field through the sale of small and were also targeted.

“Restructuring, be it in the form of re- medium-sized companies and an in-

∫ OVIDIU POSIRCA

“For 2014 we expect transactions involving consolidation in the banking field through the sale of small and medium-sized companies and an increase in the number of transactions that involve loan portfolios, especially non-performing loans,” Mihai Zoescu, director advisory KPMG, and Corina Constantin, manager for corporate finance at KPMG

Photo: Deloitte Romania

Dragos Atanasiu, senior manager, deals, PwC Romania

Photo: KPMG

Photo: PwC Romania

Photo: EY Romania

Mihai Pop, manager transaction advisory services department, EY Romania

Corina Constantin, manager, corporate finance, KPMG

Hein van Dam, partner in charge of financial advisory, Deloitte Romania

crease in the number of transactions that involve loan portfolios, especially non-performing loans,” Mihai Zoescu, director advisory at the professional services firm KPMG, and Corina Constantin, manager for corporate finance at KPMG, told BR. Mihai Pop, manager within the transaction advisory services department at the professional services firm EY Romania, commented that the market has shifted towards the financial sector due to the demise of the renewable energy market.

As the government has clearly stated its intention to reduce incentives for renewable producers, deal-making is set to diminish in the coming years, mainly due to legal uncertainty.

The biggest public deal was the sale of a 70MW wind farm by Vestas for over EUR 100 million. The solar sector, meanwhile, has seen more smallervalue deals.

According to Dragos Atanasiu, senior manager for deals at professional services firm PwC Romania, agriculture, food production and FMCG retailing will remain “stars” of the economy and attract investors.

He added that the market for durable goods will be revived once consumer loans pick up, and that transport and logistics have already been signaling growth on the backdrop of the expected economic recovery.

“The development of niche capabilities, such as the IT sector and the application of IT in services, production and retail, which generates high profitability and relevant volumes of activity, will still represent an advantage for any company interested in attracting investors,” Atanasiu told BR. Experts said that the continued listings of energy state-owned companies on the Bucharest Stock Exchange, as part of an ongoing agreement with international lenders, has had a limited impact on the M&A market.

“Privatizations could boost the M&A markets in a period marked by lower transaction levels,” said the KPMG representatives.

Insiders largely agree that the slow recovery of the Euro zone economy, Romania’s main trading partner, will not influence deal-making to a large extent.

They underlined that brisker economic growth at home could help more Romanian companies catch the eye of potential buyers.

Weak economy impacts private equity sentiment The Deloitte partner notes that several funds have looked at potential deals and proceeded to undertake lengthy negotiations, but were unable to close on satisfactory terms.

“Given the high expectations of any investment fund regarding the yields compared with the current (e.n. growth) possibilities of the economy, apparently there are still difficulties in finding companies that can represent an acquisition target,” added the KPMG experts.

ovidiu.posirca@business-review.ro

www.business-review.ro Business Review | December 9 - 15, 2013

DEALS OF THE YEAR 11

Romanian Radu Georgescu sold Avangate to Francisco Partners

Getin Holding, controlled by billionaire Leszek Czarnecki, took over RIB

Agriculture

mismanagement of EU funds.

Cargill sells local subsidiary to Expur

Banking

Value of transaction: EUR 20 million, according to media reports Legal team buyer: Tuca Zbarcea & Asociatii Legal team seller: Popovici Nitu & Asociatii Expur, a Romanian company controlled by French agricultural group Sofiproteol/Saipol, acquired Cargill Oil Romania, a subsidiary of US-based Cargill, the agricultural trading house.

Insight Investment buys four Romanian farms Value of transaction: over EUR 40 million Legal team, buyer: NNDKP and Antis Triantaffylides & Partners (Cyprus) Legal team, seller: Not made public Investment fund Insight Investment acquired four Romanian farms in the Calarasi region. The transaction was structured as a share deal. The fund took over the Cyprus-based company that fully owned the farms.

Airlines Blue Airlines Management Solutions buys Blue Air Value of transaction: EUR 30 million Insolvency administrator: Casa de Insolventa Transilvania Legal team, buyer: Wolf Theiss Legal team, seller: Not made public Blue Airline Management Solutions, a newly set-up company controlled by four Romanians, acquired low-cost carrier Blue Air. The four associates in the buyer company are Teodor-Cristian Rada, a former Blue Air pilot with a 33 percent stake, Marius-Mihail Puiu, administrator of firms in the cereal trading and logistics field with a 33 percent stake, Tudor Zamfirescu Constantin, a Blue Air alumnus who holds 17 percent of the shares, and Luciana Paunescu, the head of a travel agency with 17 percent of the shares. Blue Air is owned by insolvent construction and transport group Romstrade, whose founder, Nelu Iordache, has been jailed for the

Getin Holding takes over Romanian International Bank Value of transaction: Not made public Legal team, buyer: Tuca Zbarcea & Asociatii Legal team, seller: Wolf Theiss, Crosspoint Investment Banking (financial) Polish financial group Getin Holding fully acquired Romanian International Bank (RIB), a local lender serving retail clients and SMEs. This marked the group’s entrance on the local market. Getin Holding owns a number of banks and financial companies in Ukraine, Russia and Belarus.

UniCredit duo buy retail arm of RBS Romania Value of transaction: Not made public Legal team, buyer: Tuca Zbarcea & Asociatii Legal team, seller: RTPR Allen & Overy, EY Romania (financial) UniCredit Tiriac Bank and UniCredit Consumer Financing took over the retail business of RBS Bank Romania, accounting for around EUR 315 million in assets and EUR 230 million of liabilities. The deal was the largest portfolio transfer in Romania.

Piraeus Bank Greece sells local subsidiary ATE Bank to Dorinel Umbrarescu Value of transaction: EUR 10.5 million Legal team, buyer: Not made public Legal team, seller: Tuca Zbarcea & Asociatii Romanian businessperson Dorinel Umbrarescu acquired a 93.27 percent stake in ATE Bank Romania, a subsidiary of Piraeus Bank Greece. The deal involved the demerger of ATE Bank Romania and the transfer of certain assets to Piraeus Bank Romania.

Raiffeisen Banks buys retail arm of Citibank Value of transaction: Not made public Legal team, buyer: White & Case Legal team, seller: PeliFilip and Linklaters (international counsel)

JOIN THE BUSINESS REVIEW EDITORIAL TEAM! Want to progress your career in English-language journalism?

Business Review has two openings on its editorial team: Business journalist We are looking for someone with excellent communication skills and knowledge of the English language, and an educational background in journalism, communication studies or business.

Duties include covering press conferences, writing industry news and features, conducting interviews and contributing articles to the Business Review website.

Website editor We are looking for someone web-savvy with excellent communication skills and knowledge of the English language,

and an educational background in journalism, communication studies or business.

Duties include: gathering and publishing content for www.business-review.eu, publishing video content and editing image galleries, curating the content of the website, media and social media monitoring for leads, creating and publishing original content for the site.

Experience in business journalism is a plus.

Please send your CV to simona.fodor@business-review.ro

www.business-review.ro Business Review | December 9 - 15, 2013

12 DEALS OF THE YEAR Raiffeisen Bank took over the retail arm of Citibank, a portfolio of 100,000 customers with assets of over EUR 90 million and deposits exceeding EUR 175 million.

The deal also included the transfer of Citi’s local consumer banking staff to Raiffeisen.

Construction Advent International sells Deutek to Axxess Capital Value of transaction: Not made public Legal team, buyer: Costea Craiciu, KPMG (financial) Legal team, seller: CMS Cameron McKenna, Raiffeisen Investment Romania (financial) Private equity group Advent International sold local paint producer Deutek to the Emerging Europe Accession Fund (EEAF) of Axxess Capital. Advent International acquired Deutek in 2005 and supported its regional expansion into Ukraine, Bulgaria and Moldova. Deutek Romania had a turnover of around EUR 26 million in 2012 and 340 employees.

Delivery Cargus buys courier services provider TCE Value of transaction: Not made public Legal team, buyer: Clifford Chance Badea Legal team, seller: Popovici Nitu & Asociatii Romania’s Cargus, a courier service provider controlled by private equity fund Abris Capital Partners, bought the courier business, comprising around 1,600 customers, from TCE, a Romanian courier and door-to-door cargo provider founded

by Romanian businessperson Octavian Radu.

Energy OMV Petrom sells Petrom Distributie Gaze to Ligatne Value of transaction: Not made public Legal team, buyer: Not made public Legal team, seller: DLA Piper Oil and gas producer OMV Petrom sold its non-core gas distribution company Petrom Distributie Gaze (PDG) to Cyprus-based Ligatne as part of its strategy to optimize downstream operations. Ligatne’s parent company controls Gaz Sud and Grup Dezvoltare Retele (GDR), which serve over 22,000 clients in areas around Bucharest through a distribution network of approximately 700 kilometers.

ExxonMobil in farm-in deal over Black Sea block Value of transaction: around EUR 100 million Legal team, buyer: NNDKP Legal team, seller: Musat & Asociatii advised one of the sellers American oil giant ExxonMobil began the farm-in process at an important offshore oil and natural gas concession, as part of ExxonMobil’s strategy of expanding its oil and gas activities

in the Black Sea.

State and Rompetrol Group strike Rompetrol Rafinare share deal Value of transaction: EUR 600 million Legal team, buyer: NNDKP and Tuca Zbarcea & Asociatii Legal team, seller: Not made public The Rompetrol Group, the oil major controlled by KazMunaiGaz, and the Romanian state decided to settle a EUR 600 million dispute by entering into a long-term partnership that could include the state’s acquisition of shares in Rompetrol Rafinare, the owner and operator of one of the biggest crude oil refineries in Romania, and the development of joint investments in the energy sector.

Est Solar Engineering sets up joint venture with Pressburg Partners for solar investments Value of transaction: EUR 30 million Legal team, buyer: Est Solar Engineering assisted by Popovici Nitu & Asociatii; Pressburg Partners assisted by Wolf Theiss Legal team, seller: Not applicable The owners of Est Solar Engineering, a Romanian provider of renewable energy equipment, set up a joint venture with Austria-based Pressburg Partners, an investment fund specialized in the renewable sector, for the development of two solar installations with a total capacity of 20 MW in south-eastern Romania.

Lukerg purchases 70MW wind farm from Vestas Value of transaction: around EUR 137.5 million Legal team, buyer: White & Case Legal team, seller: Wolf Theiss, KPMG (financial) Denmark’s Vestas, the wind turbine maker, has sold its Romanian wind project Gebeleisis, with an installed capacity of 70MW, along with a smaller wind farm of 14MW in Bulgaria, to Lukerg Renew. Lukerg is a joint venture between Russia’s oil major Lukoil and Italy’s energy company ERG. The company made its first acquisitions in 2012, when it purchased two wind projects with a combined capacity of 192MW in Romania.

Olredo Holding acquires shares in Olrerom Enalfa Value of transaction: EUR 2.2 million Legal team, buyer: bpv Grigorescu Stefanica Legal team, seller: Not made public Austria’s Olredo Holding, through its Timisoara-based Olredo Rom, purchased all shares held in Olrerom Enalfa by Constructim (a developer of several renewable projects in the field of small hydro and solar) and Lucian Eugen Perescu. Olrerom Enafla had previously acquired the ownership rigs at a solar farm developed by Constructim.

Samsung C&T Corporation buys photovoltaic park Value of transaction: Not made public Legal team, buyer: Schoenherr Legal team, seller: CMS Reich-Rohrwig Hainz Rechtsanwälte

Samsung C&T Corporation and Samsung C&T Deutschland acquired a 45MW solar project in southern Romania and completed the solar installation following a EUR 100 million investment.

Enel Green Power Romania buys 5MW solar project Value of transaction: Not made public Legal team, buyer: Musat & Asociatii Legal team, seller: PeliFilip Enel Green Power Romania, the renewable arm of Italian utility Enel, bought a 5MW photovoltaic project from E-power Holding.

Enel was operating 36MW of solar capacities in Romania by early December 2013.

Healthcare & Pharma Diaverum acquires two local dialysis clinics Value of transaction: Not made public Legal team, buyer: DLA Piper Legal team, seller: Not made public Swedish firm Diaverum, a provider of private dialysis services, made two acquisitions of dialysis clinics on the local market, in a bid to consolidate its position in Romania. Diaverum entered the local market in late 2011 by acquiring nine clinics owned by the private healthcare provider Polisano.

The company is currently the third largest player on a market with an estimated value of EUR 150 million, according to media reports.

Curato Rontgen sells Scandia Imagistica to Euromedic International Value of transaction: Not made public Legal team, buyer: Not made public Legal team, seller: KPMG (financial)/Wiersholm Norway’s Curto Rontgen, a leading provider of medical imaging services, sold Scandia Imagistica, a Romanian company active in the same field, to Euromedic International, one of the biggest healthcare investors and operators in Europe.

Alliance Healthcare Deutschland gains full ownership of Farmexpert Value of transaction: Not made public Legal team, buyer: Wolf Theiss Legal team, seller: Not applicable German Alliance Healthcare Deutschland, the pharmaceuticals wholesaler part of Alliance Boots Group, gained full ownership of Farmexpert, the pharmaceuticals distributor. The German company acquired the remaining 20 percent in the local distributor from Eugen Banciu, Farmexpert founder. Alliance Healthcare Deutschland acquired a 60 percent stake in the Romanian distributor in 2006, further increasing its controlling stake to 80 percent last year.

Industry Blue Diamond Estate and Autoplast Engineering buy

Aversa Value of transaction: EUR 17.3 million Bankruptcy administrator: RVA Insolvency Specialists and Activ Lichidator IPURL Romania’s Aversa, the state-owned pump maker, was sold in a public tender to Blue Diamond Estate, a company controlled

by Canadian businessperson Michael Topolinski. Aversa, one of the largest manufacturers of pumps in Europe, declared bankruptcy in January 2012.

Insurance Aegon acquires Eureko/Achmea’s life insurance and private pensions operations Value of transaction: Not made public Legal team, buyer: Tuca Zbarcea & Asociatii Legal team, seller: CMS Cameron McKenna Dutch insurer Aegon increased its presence on the local market after taking over the life insurance, mandatory private pensions and optional private pensions operations run by Eureko/Achmea group in Romania.

Following the deal, Aegon became the third largest pensions provider and its life insurance portfolio entered the top ten on the local market.

Astra Asigurari buys AXA Life Insurance Value of transaction: Not made public Legal team, buyer: Not made public Legal team, seller: Not made public Insurer Astra Asigurari, controlled by Romanian businessperson Dan Adamescu, acquired the local life insurance and savings operations of French insurer AXA. According to media reports, Astra took over 40,000 contracts and a business worth EUR 7 million. AXA Life Insurance reported a loss of EUR 10 million in 2012.

IT Francisco Partners buys Avangate Value of transaction: Not made public Legal team, buyer: Shearman & Sterling, KPMG (financial) Legal team, seller: Edwards Wildman Palmer, Pagemill Partners (financial) Gecad Group, controlled by Romanian entrepreneur Radu Georgescu, sold the full stake in international e-commerce solutions provider Avangate to California-based private equity firm Francisco Partners. With over 20 years’ experience in building global technology businesses, Georgescu is one of the most well-known Romanian serial entrepreneurs and angel investors. In 2003, he made an exit from his security software venture, RAV Antivirus, which he sold to Microsoft. This was followed by the acquisition of his second venture GECAD ePayment in 2010 by Naspers, a South African internet and multimedia company.

www.business-review.ro Business Review | December 9 - 15, 2013

Intel Capital offloads stake in Siveco Value of transaction: Not made public Legal team, buyer: Popovici Nitu & Asociatii Legal team, seller: Dentons Intel Capital, the global investment and M&A arm of chip maker Intel, sold its 10 percent stake in Siveco, a Romanian software developer and integrator. According to media reports, the shares were repurchased by Siveco, which also repurchased a 22.5 percent stake from Polish investment fund Enterprise Investors.

ABC Data sells controlling stake in Scop Computers Value of transaction: EUR 500,000 Legal team, buyer: Not applicable Legal team, seller: Dentons ABC Data, the largest distributor of IT&C products in Poland, sold its 51 percent stake in Scop Computers to Mokito Management Limited, a company controlled by Romanian businessperson Alexandru Visan, a former majority shareholder in the company. Scop Computers went into administration in 2012, following VAT fraud allegations. ABC Data paid EUR 4.4 million for the controlling stake in the Romanian company in 2010.

NTT DATA buys EBS Value of transaction: Not made public Legal team, buyer: Schoenherr Legal team, seller: Popovici Nitu & Asociatii Japan’s NTT Data Corporation acquired the full share package in Cluj-based software company EBS Romania, which specializes in providing near-shore IT services for international customers, mainly in German-speaking countries.

DEALS OF THE YEAR 13 Legal team, buyer: Wolf Theiss Legal team, seller: Tuca Zbarcea & Asociatii The main shareholders in Romanian marketing agency Kinecto International – Dragos Grigoriu and Radu Ionescu – fully sold their stakes to London-based Aegis Group, a multinational media and digital marketing communications company.

Burda International buys Sanoma Hearst Romania Value of transaction: Not made public Legal team, buyer: D&B David si Baias Legal team, seller: Clifford Chance offices in the Netherlands and Romania Burda International took over all the activities of Sanoma Hearst in Romania, becoming one of the largest media groups in the country with over 35 titles and 40 online media services.

Publicis Groupe takes over majority stake in five affiliated agencies Value of transaction: Not made public Legal team, buyer: DLA Piper, KPMG (financial) Legal team, seller: Not made public Publicis Groupe, one of the largest communications groups worldwide, consolidated its local operations by reaching a 51 percent stake in five affiliated agencies: Leo Burnett & Target, Starcom MediaVest Group, The Practice and iLeo (all part of Leo Burnett Group) and Optimedia (part of Publicis Romania). Prior to the deal, Publicis owned 35 percent in Leo Burnett and 35 percent in Starcom, but had no stake in iLeo, The Practice or Optimedia.

NOD acquires Microlabs Value of transaction: Not made public Legal team, buyer: White & Case Legal team, seller: Not made public NOD, one of the three largest electronics wholesalers in the IT&C distribution market in Romania, acquired Microlabs, a local company active in the IT distribution market.

Leasing Trendo Automotive buys Romexterra Leasing Value of transaction: Not made public Legal team, buyer: KPMG (financial) Legal team, seller: Not made public Trendo Automotive, controlled by International Leasing, acquired Romexterra Leasing in order to consolidate its own position on the market and improve its financial results. Romexterra Leasing had had its operations put on hold after posting significant losses.

Media & Advertising Aegis Group acquires Kinecto International Value of transaction: EUR 5 million

Publicis Groupe buys Zenith Media Communication Value of transaction: Not made public Legal team, buyer: Biris Goran, KPMG (financial) Legal team, seller: Not made public Publicis Groupe media network ZenithOptimedia took majority control of media buying company Zenith Romania, which was previously an affiliate agency. The vendor was communications group Centrade.

Real estate NEPI purchases Mercureal Value of transaction: Not made public Legal team, buyer: Reff & Asociatii Legal team, seller: PeliFilip Real estate investment fund New Europe Property Investments (NEPI) took over the retail platform business of Mercureal, a company that went through a corporate reorganization prior to its sale. The fund reported a slight increase in net rental and related income to EUR 30.9 million in the first nine months.

Corinthian Five buys two land plots in Bucharest Value of transaction: Not made public Legal team, buyer: NNDKP Legal team, seller: Pachiu & Associates

Corinthian Five acquired a piece of real estate located in the office hub of Bucharest (the Barbu Vacarescu/Pipera area) for the development of a 23-floor office building

The two buyers have a combined turnover of EUR 150 million, while Pambac’s business hovers at around EUR 43 million.

Immofinanz acquires three real estate projects

Stock Exchange

Value of transaction: Not made public Legal team, buyer: Popovici Nitu & Asociatii on Romanian matters; Magnusson on Polish and Latvian matters and Stelios Americanos on Cyprus matters Legal team, seller: Not made public Austria’s Immofinanz AG, the real estate investor and developer, acquired three real estate projects, two in Romania and one in Poland. The deal spanned multiple jurisdictions including Romania, Poland, Cyprus, Israel, Austria and Latvia.

Alpha Bank and Tower Center International in settlement agreement Value of transaction: Not made public Legal team, buyer: SMDA Legal team, seller: NNDKP Alpha Bank and Tower Center International concluded a settlement agreement involving the transfer to the latter and consolidation of the ownership title of an office building with a gross leasable area of 22,163 sqm.

Retail Tymbark Maspex acquires Pan Group Value of transaction: Not made public Legal team, buyer: Bulboaca & Asociatii Legal team, seller: In-house lawyers Food and beverage maker Maspex - GMW Sp. z o.o. S.K.A Poland and Tymbark Maspex Romania took control over some of the activity of Pan Group, a major Romanian bakery producer, by purchasing the assets and corresponding business related to salty and sweet biscuits and packed cookies.

Kingfisher takes over local Bricostore operations Value of transaction: Not made public Legal team, buyer: PeliFilip, Freshfields Bruckhaus Deringer (international counsel) Legal team, seller: CMS Bureau Francis Lefebvre British home improvement retailer Kingfisher acquired the 15 Bricostore stores operated by French company Group Bresson locally, with plans to further grow the business to around 50 stores in the longer term.

Comfert and Popas Trebes take over Pambac Value of transaction: over EUR 10 million, according to media sources Legal team, buyer: Not made public Legal team, seller: Not made public Romanian Comfert and Popas Trebes, two companies active in the agriculture sector, acquired Pamabac, one of the biggest players in the bakery field.

Romgaz sells 15 percent stake in IPO Value of transaction: EUR 390 million Legal team, Romgaz: Bulboaca & Asociatii (Romanian law), Hogan Lovells (English and US law). Dentos provided legal advice in connection with the process of acquisition of intermediary services, as well as with the IPO on the local and international market.

Joint global coordinators and joint bookrunners: Erste Group Bank and Goldman Sachs International Domestic lead managers: Banca Comerciala Romana and SSIF Raiffeisen Capital & Investment Legal advisor to the managers and to the depositary: Clifford Chance (US and English law), Clifford Chance Badea (Romanian law) Romgaz, the state-owned gas producer, raised EUR 390 million from listing a 15 percent stake in an initial public offering (IPO). This was the largest Romanian IPO to date and the first to include the issue of global depositary receipts (GDR) that have started trading in London.

Nuclearelectrica sells 10 percent stake in IPO Value of transaction: EUR 66 million Legal team, Nuclearelectrica: Bostina si Asociatii and Winston & Strawn (international counsel) Intermediary consortium: Swiss Capital and BT Securities Legal team, consortium: Musat & Asociatii and Hogan Lovells Nuclearelectrica, the state-owned nuclear energy producer, sold a 10 percent stake on the Bucharest Stock Exchange in an oversubscribed initial public offering.

Following the listing, the company increased its share capital by EUR 70 million, which included a 1.07 percent stake in minority shareholder, the Property Fund.

Telecom RCS&RDS buys Fastlink Value of transaction: Not made public Legal team, buyer: Not made public Legal team, seller: Not made public Internet, telephony and TV provider RCS&RDS took over Fastlink, a supplier of internet and telephony services to individual clients and businesses in Bucharest (in the neighborhoods of Cotroceni, Sebastian, Rahova, Berceni), Buzau and Pantelimon town, according tomedia reports. RCS&RDS is indirectly controlled by businessperson Zoltan Teszari.

www.business-review.eu Business Review | December 9 - 15, 2013

14 ROMANIAN INVESTORS FORUM

The current state of affairs of Romanian businesses – where do we go from here?

Are the latest successful listings on the Bucharest Stock Exchange a sign of the revitalization of the Romanian business environment and the reconstruction of the country’s shattered SME backbone? At the Romanian Investors Forum to be held this week, Business Review and its invited speakers discuss solutions to the issues facing local entrepreneurs and the measures needed to ensure the economy’s evolution from a frontier to emerging market status. ∫ ANCA IONITA Large local and foreign investors from the UK, US and Poland flocked to acquire shares in Romgaz last month, as the oversubscription rate edged up to five times the available amount. The government has raised EUR 390.9 million from selling a 15 percent stake in the state-owned gas producer, in the biggest initial public offering (IPO) in Romania. In a statement issued by the Bucharest Stock Exchange (BSE), the CEO Ludwik Sobolewski, said, “With the Romgaz IPO, the Romanian capital market has moved onto the global stage.”

The good news is that more such privatizations are to follow in 2014, as part of the privatization program of state-owned energy companies agreed with the IMF. The government is next aiming to sell a 15 percent stake in Hidroelectrica, the stateowned power producer, and 51 percent of the shares in power supplier and distributor Electrica, by June 2014. Boosting the liquidity of the local market, which currently hovers at around EUR 29 million, is part of Sobolewski’s strategy to expand the BSE into a regional player.

However, this brisk success registered by the local capital market is not common to the entire economy, despite the fact that it’s backed by 2 percent economic growth announced by the government for this year and an 8.4 percent increase in exports in the first nine months of 2013, according to the National Statistics Institute. In an article published in October last year by the Financial Times, the Romanian economy was labeled a “frontier” one, aspiring to the status of “emerging market”.

The tough economic crisis we have been going through over the past five years has torn apart “the country’s

EUR 390 mln the amount raised by the state from the Romgaz IPO

Ludwik Sobolewski, CEO of the Bucharest Stock Exchange

SME fabric”, says Florin Pogonaru, the head of the Romanian Businesspeople’s Association, “with Romanian entrepreneurs suffering the most.”

The internal value chain has been dismantled to the level that “not even a rubber mount made in Romania can be bought locally anymore,” adds Pogonaru, quoting major Romanian entrepreneur, Constantin Toma, the head of the Romet industrial group based in Buzau. “We applaud the increase in exports and of the GDP, while witnessing a decrease in the public’s living standards,” says Pogonaru. “This paradox cannot be explained but by the use of cheap local workforce in a bunker-type economy, which relies only on external inputs and doesn’t produce added value internally.”

Romanian businesspeople have lost their faith in the country’s institutions. Their delayed reaction and the lack of a coherent SME strategy have hindered the development of the economy’s support system and one of its engines of growth. “The economy has the intrinsic power to grow by more than 5 percent per year, (e.n. sustained by) small entrepreneurs to bigger corporations,” says Ovidiu Chiorean, managing partner for investment banking at Crosspoint.

“The issue is whether the machinery is well functioning and the government

Florin Pogonaru, head of the Romanian Businesspeople Association

does not put the brakes on it – I am referring not only to regulatory issues but also to fiscal measures.”

In Pogonaru’s opinion, the latest success for the BSE, which comes after four years of poor performance, could be the trigger of what economists call a virtuous cycle for the economy, boosting businesspeople’s confidence in a sector and attracting investments. A successful example of such a virtuous process is the local IT industry, explains Pogonaru, which experienced a boom after the implementation of a favorable tax regime.

“I strongly hope that the Romanian economy will see more such virtuous cycles in the near future,” he adds.

Despite the constant obstacles Romanian entrepreneurs have been encountering, some local companies in several major industries have not only survived under the tough economic conditions, but have expanded their businesses while continuing to invest in the local economy.

Successful entrepreneur Dorinel Umbrarescu, with businesses worth around EUR 360 million in the infrastructure sector, this fall announced the purchase of a 93.27 percent stake in ATE Bank Romania, in a deal worth EUR 10.3 million. The proposed name for the re-branded bank is Romanian Bank for Credit and Investment. Umbrarescu is one of the Romanian busi-

Ovidiu Chiorean, managing partner for investment banking at Crosspoint

nesspeople that will be recognized for successfully making a difference on the local economy, along with other companies nominated for their outstanding results in three major categories: Innovation, Human Capital, and Financial Investment / Capital Markets.

About the event The Romanian Investors Forum (RIF) is an annual event dedicated to Romanian companies and entrepreneurs that have managed to make a difference either in the local or international market. With this event, Business Review celebrates the entrepreneurial drive, innovation and new investments of local businesses and entrepreneurs.

The companies that will be honored this year are some of the most active players in industries such as: Agriculture, Energy, Banking & Capital Markets, Health Care Services, IT, Real Estate and Retail. The selection was made entirely by the Business Review team, with the following criterion: companies that started their activities after 1990 as a Romanian SME, even if some of them no longer have a 100 percent Romanian ownership structure.

To find out more about other companies recognized at RIF check www.business-review.eu anca.ionita@business-review.ro

www.business-review.ro Business Review | December 9 - 15, 2013

OPINION 15

CEO CORNER Sotiris Chatzidakis Executive VP, CEO Clubs Romania

Peer networking and the “super brain” I am among the blessed ones who at one point in their career or currently had been or are growing with their business. Either being entrepreneurs or executive CEOs, this unique experience of reinventing the wheel is providing an amazing ability – that becomes a habit and a big plus afterwards: to be able to look at things, concepts, thoughts etc in a different way, every day, in different circumstances. It makes everything look possible and allows us to challenge the status quo without the false fear of rejection or failure. After the 100th time that you’ve done it in order to survive, it doesn’t frighten you anymore! This context is the ideal one for innovation.

And innovation is primarily the acceptance of the possibility that we do not know everything. Innovation is the 24/7 voice in our brains that tells us there is better way.

Therefore I believe everything is possible.

Skipping the clichés about the world being changing really fast today and being extremely challenging etc (which are true but written a couple of million times) let’s try to identify the business leader’s necessary qualities in order to thrive today: they must be people with values, resourceful, industrious, decisive, open, agile, inspirational, close to their people, innovative, cultured, sociable, transparent, direct or diplomatic ad hoc, productive, doers and target oriented. How many CEOs or entrepreneurs own all or most of those qualities? Probably, not too many. And that’s where “peer networks” enter the equation. Leaders are lonely at the top. They share the responsibility and the result mostly with themselves. Everyone believes they are directly related to Batman or Superman and that they are not allowed to make any mistakes. Well, unlikely to what we believe, leaders are highly competent and smart human beings who do not have all the answers. And today, they are asked

to act in a million different ways every day, getting all sorts of results and keeping the whole system quiet.

For those who know, sometimes the deal is not as good as it looks from the outside. It is a fact today that a leader, no matter how effective and good he/she is, cannot make it all alone. And it is that need that generated “peer networks” which are networks of leaders sharing common challenges, aspirations, needs and knowledge. Groups of people who can feel the urgency of the mo-

ment, the immediate demand for the result, the specifics of each case, the burning desire to develop and to grow.

To be effective, a “peer network” must primarily have an initiator/catalyst and a clear and shared vision.

In addition, its members must share specific characteristics: leaders who embrace continuous learning, who are ready to challenge the status quo and who are willing to share their knowledge and experience with the others. The more common

the characteristics, the faster good things will happen. Moreover, such a network should also encourage diversity, openness, trust and transparency.

When all the above are in place then the generated value of its units multiplies and amazing things happen. Imagine how awesome it is to be part of such a “super brain”! A “brain” that you can “touch” every time you’re in question and it will give you the right answer. Every single time, as one of your peers has for sure been through what you are currently experiencing or seeking. It is where sharing a failure is far more important than sharing a success. And there are two great things about it: the first is that in this “transaction” the only currency is the “added value” and the second is that as soon as that happens, the leader embraces sustainability and that makes him a positive social influence.

In the CEO Clubs, we are practicing all that for the last 37 years, all over the world. And one of the learnings we’ve got is that what makes a leader is the “noise” he or she makes. And the better the chorus, the better the melody it produces. In such environments leaders become humans again and build sustainable relationships that matter. That’s where they form a new vision for them, for their people.

That’s where “when the going gets tough … they touch the “super brain”.

From next Tuesday and every 2 weeks, we will be kindly hosted from BR in this corner as one of our CEO Clubs Members will be proudly sharing some thoughts with you, trying to open a communication channel with everyone who wishes to make a difference. Respond. Become part of the “super brain”!

16 SPECIAL PROJECT / EXCELLENCE IN BUSINESS

www.business-review.eu Business Review | December 9 - 15, 2013

10 YEARS OF EXC Bringing international standards to the local consultancy market Mamas Koutsoyiannis, managing director at Baker Tilly Romania, tells Business Review about the company’s major achievements on the local market and the significant role its membership of the Baker Tilly International network plays in its success in Romania. ∫ ANDA SEBESI

You are a member firm of the Baker Tilly International network. How does this help you on the Romanian market and how significant is its contribution to the success of your company?

Back in 2003, we were the first Klitou and Partners office to become an independent member firm of the Baker Tilly International Network, under the brand name “Baker Tilly Romania”.

Whilst each member firm has a strong reputation in their local market, the combined strength of the member firms shows Baker Tilly International is a key global accountancy and audit network. Being members of an international reputable network is an indication to our customers in Romania that we provide high-quality services and we have the knowledge and capabilities to offer them support in their cross-border transactions, as well as in

Photo: Mihai Constantineanu

For how long have you been present on the Romanian market and what have the company’s achievements been over the years?

We entered the Romanian market in early 2003 with only five dedicated people working in the office. In the first few months of operations, we managed to gain our first ten customers, providing them with audit, accounting, corporate and legal services. We are now a team of 60 people servicing over 500 companies locally and internationally.

Throughout the years, we have received various nominations and recognition from ACCA, the World Bank, ICAEW and local professional institutions such as CAFR, CECCAR and CCFR as well as specialized publications in Romania and abroad. The most recent accolade we received is the “Special Award – Fast Growing Tax Practices” from Avocatnet.ro, in October this year. Our tax practice was recognized as a second-tier tax practice (i.e. after the Big 4 corporations) for the first time in 2012, recognition maintained in the rankings published for 2013 as well.

BAKER TILLY ROMANIA IN NUMBERS

their domestic operations. And we’re talking here about areas like: auditing consolidated financial statements, supporting the tax planning efforts of members of multinational groups, helping them to design transfer pricing policies and to prepare transfer pricing documentation either at entity level or at group level, and supporting customers in their reporting obligations to the group.

Your stated objective is to build a strong relationship with your customers. How have you managed to do this on the Romanian market?

Our customers are the most important element of our business. Our services are fully geared towards fulfilling their needs. We keep a frequent and open communication channel with them. We treat each customer individually and respond proactively, ensuring the maintenance of our professional independence at all times. We are extremely proud and pleased that our very first customer, an international name like us, is still a loyal customer after ten years full of challenges.

What is your strategy behind the services you offer to your customers The key to our success is our people.

The excellent services provided by our team are the result of their continuous

efforts to maintain a high level of knowledge and professionalism. We always give our people the chance to enhance their knowledge through internal and outsourced training sessions.

And they also have access to Baker Tilly International resources. Our people also receive frequent online training, through Baker Tilly International online training tools, and have access to network conferences and customized training.

What types of customers do you target on the Romanian market?

We have the capability to provide services to customers from various industries, without limitation; therefore I could not say that we target a specific industry. Our client portfolio includes various types and sizes of enterprises, including holding companies, which operate in various business sectors, from retail and manufacturing to financial institutions and automotive.

How do you characterize the Romanian market niche you operate on and what can you tell us about your plans?

The Romanian professional services niche is a very challenging one and it takes a good strategy and highly skilled professionals to keep ourselves in the competition with top consultancy firms in Romania.

Team: 60 Number of customers: 500+ Significant customers: Druckfarben, Elmec, Alumil, Miele, Steelmet, New Kopel, Bank of Cyprus, Sarantis, Singer, Karamolegos, Epstein, ACCA, Benevo, 5aSec, Argo, AIMS, Demetra Public Investements, Marinopoulos Coffee (Starbucks), Argo, 360 Insights, Singer, Marinpoulos Rom Fashion (GAP), Izvorul Cristalin, SunChemical Certifications: Member of CAFR, CECCAR, CCFR, ANEVAR, ACCA approved CPD employer, ACCA Approved Employer – Trainee development Platinum level, ICAEW Approved Training Practice.

Eligible to audit projects financed by the World Bank, EBRD. Qualifications, recommendations and public awareness are very important when selecting a services provider in this field of activity. This is why we do our best to constantly prove our knowledge and skills, as well as our willingness to share the knowledge to the benefit of our clients. We are also involved in the business environment’s efforts to lobby the authorities to adapt the legal framework to the reality of the challenging periods we are facing.

Also, our audit and assurance department is on the list of fully approved auditors for all World Bank-financed projects, thus enhancing our ability to work with Romanian ministries and public sector institutions, and Baker Tilly International is also shortlisted in the Forum of Firms. This allows us to audit projects financed by the EBRD. Through all these means we aim to become the top second-tier firm over the next five years. anda.sebesi@business-review.ro

www.business-review.eu Business Review | December 9 - 15, 2013

EXCELLENCE IN BUSINESS / SPECIAL PROJECT 17

XCELLENCE High-quality services lead to long-term success High-quality services are at the heart of any company’s achievement, regardless of its field of activity or size.

They are a powerful tool to attract potential customers and keep the existing ones satisfied. ∫ ANDA SEBESI

Nadia Oanea

Manager, Head of Tax Department With over 13 years of professional experience, Nadia is in charge of the Tax Department of Baker Tilly in Romania.

She is member of CCFR, CECCAR and ANEVAR.

Photo: Mihai Constantineanu

For Baker Tilly in Romania, the quality of its services has been a priority since its entrance on the Romanian market, back in 2003. The company has managed to create a very good image on the market over the past ten years, mainly because of the excellent services it provides. “This, combined with the in-depth local knowledge of our people, has positioned us among the most important consulting firms in Romania. But in order to keep this ‘business card’ before our potential customers, we need to constantly evaluate our activity and continuously improve ourselves and the services we provide,” says Mamas Koutsoyiannis, director at Baker Tilly Klitou and Partners.

Since its entrance on the local market, Baker Tilly in Romania has amassed a significant number of certifications as a result of its successful activity in Romania. Koutsoyiannis says that they have already become part of the company’s brand and have been obtained after thorough reviews carried out by various local and international institutions. “They give us credibility and show that we are qual-

for success is a combination of highly skilled employees, the power of the Baker Tilly brand, the firm’s long presence on the Romanian market and its competitive fees. “This combination gives us a place in the top 10 firms in Romania, serving over 500 customers, out of which 80 are subsidiaries of listed companies on various stock exchanges worldwide.”

Asked about the profile of Romanian consumers of professional services, Koutsoyiannis says they have become more educated and demanding. “Being an international network and dealing with international business, we are taking this as a challenge.

Our aim is not only to satisfy our clients and keep up with their expectations, but also to exceed them by being proactive and advising them services, corporate and personal tax- well in advance of anticipated chalation, tax litigation advice, tax plan- lenges and prospects,” he adds.

Looking forward, Koutsoyiannis ning, tax structuring and transfer pricing, corporate finance and capital says that the company will remain fomarkets, business consultancy and cussed on strengthening the services advisory. “Also, through our associ- it currently provides. “Our strategy ated law firm, we provide legal assis- over the next five years is to expand tance on corporate and commercial, more in Bucharest and also to extend M&A, real estate, labour, finance, in- our activity to other big cities in Rotellectual property and litigation,” mania,” he concludes. adds Koutsoyiannis.

He says that the company’s recipe anda.sebesi@business-review.ro

The team of Baker Tilly in Romania

ified to provide excellent services to our customers. They also attract highly skilled potential employees who know that certifications like ‘ACCA approved employer’ or ‘ICAEW training centre’ will give them the chance of continuous, high-quality professional development,” he says.

At present, the company provides a very wide range of professional services such as: audit and assurance, internal audit, accountancy, CFO

Vlad Tomosoiu

Casian Sabau

With over 12 years of experience, Vlad is in charge of the associated law firm of Baker Tilly in Romania.

He is member of Romanian Bar and UNPIR.

With over 12 years of experience, Casian is Manager of the Audit Department of Baker Tilly in Romania.

He is also member of ACCA and CAFR.

Managing Partner, Baker Tilly Romania Legal Services SCARL

Audit Manager

Paul Ghita

Victor Papala

Manager, Head of Corporate Finance Department

Senior Manager, Head of Accounting Department

Paul is running the Corporate Finance Department of Baker Tilly in Romania with over 8 years of experience in Strategy Consulting and Investment Banking.

With more than 12 years of experience, Victor is in charge of the Accounting Department of Baker Tilly in Romania. He is member of CECCAR, CCFR and CAFR

Michalis Papadouris Audit Manager

In charge of the Audit Department of Baker Tilly in Romania and Moldova since 2005, Michalis is member of ACCA, IIA, ICPAC and CAFR.

www.business-review.eu Business Review | December 9 - 15, 2013

18 TRAVEL

The Rhodope Mountains: a journey into undiscovered Bulgaria While Bucharest-based holidaymakers are regular visitors to Bulgaria’s Black Sea Coast and ski resorts, the Rhodope Mountains, which straddle the border with Greece, are much less well known. After you’ve packed away your skis for the year, take a trip off the beaten track to this less travelled corner of the Balkans. BR took in some of the highlights.

Photos: Vasile Szakacs

Praiseworthy: the eye-catching Cathedral of Saint Vissarion of Smolyan

∫ DEBBIE STOWE Asen’s Fortress This lofty medieval fortress is today a peaceful spot – though it does, rather incongruously, advertise Wi-Fi! Perched atop a ridge, it affords superb views over thickly coated mountain terrain, with the Chepelare River running through it.

Artifacts unearthed at the site indicate that the area was inhabited as early as the Thracian era, though the fortress was rebuilt in the 13th century. Near vertical drops created by the dramatic massif surroundings rendered the remote castle impregnable on three sides, and it played an important strategic role during the Crusades. Over time it passed through the hands of the Thracians, Romans, Byzantines, Crusaders, Bulgarians and Ottomans.

Today the fortress itself is in ruins, but the site hosts the 12th-century Church of the Holy Mother of God, in far better condition – partly thanks to reconstruction in 1936 following an earthquake. Back in use as a place of worship since 2008, it is full of character, but the chief draw is the fragments of 14th-century frescoes featuring saints and biblical scenes – you’ll need to understand Medieval Greek to make sense of the captions, though. If you can cope with roughhewn steps, a climb up through the fortress site lets you view the church

from above, against the striking backdrop far below.

Location: 2 km south of the town of Asenovgrad

Blue note: frescoes at the entrance to Bachkovo Monastery

on display in the village art gallery.) The religiously inclined might find another explanation for the local longevity: there are 28 chapels in and around the village, serving a population of fewer than 1,400.

Location: 15 km north-east of Smolyan

Momchilovtsi The village of Momchilovtsi seems sleepier than you might expect from its name, which commemorates Momchil Chudnite Mostove Voyvoda, a 14th-century bandit-turned- Known in English as the “wonderful” or local ruler celebrated for fighting the “marvelous” bridges, the blasé visitor Turks. But more is going on here than is might wonder just how amazing a rock immediately apparent. The townspeo- formation can be. These – a series of ple’s efforts to pass on their cultural her- natural arches formed by river erosion itage to the next generation have earned likely followed by an earthquake – deit the accolade of Unique European Set- serve their flattering adjectives. Tourists tlement. Dancers don traditional cos- can visit only the largest arch, as the rest tumes once a week and perform at the are impassable. One is enough: the local cultural center, part of a nascent main section, 45 meters tall and 40 metourism scene developing for the last ters wide, is breathtaking, and it is aldecade. With the populations of many most unfathomable how nature such small towns falling as young peo- inadvertently created something that ple seek their fortunes elsewhere, looks like a large railway or road bridge Momchilovtsi residents proudly tell vis- fashioned by much human expertise itors that this is not the case here. and endeavor. The “bridge” is in a In another demographic quirk, a full dense, old conifer forest, further adding quarter of the population is said to be to the sense of mystery engendered by over the age of 85, which has been put this astonishing natural monument. down to the health-promoting proper- Location: Karst Valley ties of the local bacteria. The news travelled far: Momchilovtsi-branded yogurt, Bachkovo Monastery using bacteria from the village, is now Bulgaria’s second largest monastery sold in China by a Shanghai company. was founded nearly a millennium ago, (A picture of happy Chinese children though it fell to the Turks and was renwith their Bulgarian yogurt, presented ovated in the 15th century. Today, the to the mayor by a visiting delegation, is only original part remaining is the os-

suary (where skeletal remains are housed). The main church, a mere four centuries old, contains a selection of frescoes; visitors from Romania will know what to expect as Bulgaria’s Orthodox churches and the worship conducted within them are fairly similar to the local style. Don’t miss the panorama mural on the outside wall of the refectory, which depicts the story of the site.

The buildings are set around a peaceful courtyard, with pleasant trees and fountains; it’s a good spot for contemplation or a spot of restfulness before continuing your journey.

Location: 1.5 km from the village of Bachkovo, 9 km south of Asenovgrad Trigrad Gorge This stunning marble rock canyon yields some of Bulgaria’s most impressive scenery. The cliff faces are so sheer and, at times, near, that the feeling is akin to walking the skyscraper-flanked streets of New York or Hong Kong – only the structures were left by nature, rather than humans. A dense coating of pine trees adds to the glorious vistas, which you can enjoy on a drive through the area (provided your stomach can cope with the tortuous roads). The surroundings are popular with birdwatchers.

Location: Smolyan Province Dyavolsko Garlo (Devil’s Throat Cave) Fans of the classics – this is your chance

www.business-review.ro Business Review | December 9 - 15, 2013

to walk in the footsteps of Orpheus!

Devil’s Throat Cave is said to be the main hall of Hades in the ancient Greek myth. The musician and poet, who could charm anyone he met, journeys into the underworld to rescue his wife, Eurydice, who’s been killed by a snake bite. His charm offensive persuades the overlords of the underworld to let Eurydice return with Orpheus to their realm, provided neither looks back. But antsy Orpheus turns round just as the couple are nearly home free, losing Eurydice forever.

Even if you know nothing about antiquity or Greek myth, the cave is a thrilling experience, from the thunderous waterfall to the sinister-looking ranks of bats in their upside-down repose. If you’re of a decent fitness level and unflappable disposition, you can exit the cave via a 300-step climb. The steps are uneven, damp and not well lit (though you have handrails all the way), and as you ascend you may develop some sympathy for the nervy Orpheus, but if you have the nerve there are splendid views when you emerge, blinking, into the sunlight. Nonclimbers can exit the cave the same way one enters.

Location: Trigrad Gorge

TRAVEL 19

Fort about it: the Church of the Holy Mother of God at Asen’s Fortress

A most peasant occasion: the Rhodope Mountains preserve old traditions

One foot in the past: slippers show the Turkish influence on local styles

Yagodina Cave Bats hanging just above human head level, stalactites and stalagmites, and a gloomy chill (the temperature is a constant 6 degrees) all make Bulgaria’s largest cave system eerily atmospheric.

In total there’s around 10 km of labyrinth, of which the 45-minute tour takes you along about a tenth.

The commentary has to work hard to compete with the sheer, Indiana Jones-esque thrill of being in such a striking subterranean haunt, but the facts are also fascinating: the stalactites grow at a rate of 1 cm every 50 to 100 years, and evidence has been found of Neolithic cave-dwellers dating back 6,000 years. Bizarrely, there is also a wedding chapel: if Las Vegas doesn’t appeal, you and your beloved could join the more than 20 chilly

snowboard factory in the Balkan peninsula, Chepelare is a good base for visiting the Wonderful Bridges.

Outside ski season there is hiking and horse-riding to be done, and a couple of pretty parks to visit.

couples who have tied the knot among the bats.

Location: Buzhnov Gorge Where to base yourself: Smolyan Situated close to the Greek border, Rustic Smolyan is one of Bulgaria’s highest towns, at an altitude of 1,000 meters.

This elevation makes it ideally suited to host the country’s largest planetarium, where visitors can sit back and enjoy a journey through the cosmos. The town is also home to an art gallery, and Bulgaria’s third largest church, the Cathedral of Saint Vissarion of Smolyan, which began serving the faithful in 2006.

Chepelare Famous for hosting the only ski and

Pamporovo Dubbed the “Sunny Beach of winter tourism”, Pamporovo’s ski resort status is well documented. However, the town also serves as a base for spring and summer activities, such as hiking and cycling.

Getting there: Qatar Airways and Tarom both run direct flights between Bucharest and Sofia, five or six days a week.

Spring fares start at less than EUR 200 for a return flight. Driving from

Bucharest to Sofia takes around five and a half hours, and it’s about another three hours from Sofia to the Rhodope Mountains.

The best way to get around the area is by car, as bus services tend to be infrequent. Distances are not great, but progress is often slow because of the mountain roads.

Further practical details, including hotel and restaurant recommendations, are included in the online version of this article at http://businessreview.eu/.

Debbie Stowe and Vasile Szakacs travelled to Bulgaria courtesy of the country’s Ministry of Economy and Energy and Bulgarian Publishing Company. debbie.stowe@business-review.ro

www.business-review.eu Business Review | December 9 - 15, 2013

20 CITY

Stocking up: where to buy clothes for Christmas

We could tell you how many shopping days are left until Christmas, but we don't want to scare you! Worry not: BR is here to help, by taking the stress out of your seasonal shopping with a raft of recommendations for local designer fashion boutiques. those interested in wearing the best materials, Sarto offers cashmere suits and even Vicuna wool, the most expensive fabric material in the world.

22 Nicolae Caramfil Street, www.sarto.ro

∫ OANA VASILIU

Photo: Mihai Constantineanu

Cocor Store Unique for the Romanian fashion designers’ gallery on its second floor, which currently brings together more than 30 local designers, Cocor offers a variety of clothes and accessories at affordable prices as well as bespoke options. Brands include: Malvensky, Razvan Firea - Royal T collection, Maria Marinescu, ManurÍ, Naiv, Răzvan Vâlceanu, Novus by Denisa Tudor, Geanina Punkosti, Anca Puiu and Aura Salabaşev – Aruana brand, recently presented in the gallery, as well as Andra Andreescu, Alexandra Calafeteanu, Adelina Ivan, Anca & Silvia Negulescu, Anca Radulescu, Andreea Raicu, Andreea Visescu, Agnes Toma, Bold, Casual Monday, Cathias Edeline, Clara Rotescu, Corina Vlădescu, Cristian Samfira, Cristina Nichita, Dana Păun, Deea Buzdugan, Elena Perseil, Kinga Varga, Lavinia Nistor, Laura Olteanu, Lena Criveanu, Mândra Chic, Mihai Albu, Mirela Diaconu, Molecule F, Murmur, Norina Stoica, PNK Casual, Rhea Costa, Simona Semen, Ștefan Burdea, Ștefan Muscă, Ștefania Caragea, Stephan Pelger and Studio Cabal.

29-33 I.C. Bratianu Blvd. www.cocor.ro

Festive fashion: Romanian designer goods at Eva - Romanian Design

be a successful business model using the idea of association. The project uses the pop-up shop system, where every designer brings his/her own stand and hosts a window display. Currently, the fashion gallery hosts 14 Romanian designers and brands, namely Ana Alexe, Adelina Ivan, Irina Schrotter, Venera Arapu, 109, Fandacsia, Lady Magpie, Murmur, Ciprian Vrabie, Le Petit Indigent, Parlor, Carla Szabo, Patzaikin and Maria Marinescu.

Dada The epitome of a concept store. After enjoying a fusion lunch in the unmistakable Dada style, you can pick up a dress or bag at production prices. Why? Because the building’s upper floor hosts the Dada factory itself. Downtown, Dada products and other fancy labels can be found in the little shop at Piata Amzei.

94bis Matei Voievod (restaurant/showroom), 1 Tache Ionescu (shop). www.dada.ro.

Kristina Dragomir Hats Artistic hats are created on frames made by the renowned UK Royal House specialists, with the finest and most exotic materials purchased in London, where the designer learned her craft. This is a fantasy world where women have no limits. Kristina Dragomir is available to discuss bespoke hat options and give styling advice by appointment only, from 18.30-21.00, Monday to Friday.

51 Mihail Kogalniceanu, 2nd floor, access code 11. www.kristinadragomir.com

EGO For a made-to-measure Ego suit, international designer Louis Purple does the outline. A complete gentleman’s outfit comprises jacket, shirt, trousers, shoes, tie/bowtie, cufflinks and handkerchief, and prices vary depending on the customer’s needs.

2 Lascar Catargiu Blvd., Baneasa Shopping City, www.egofashion.ro

Madame Briolette A window full of heads wearing hats, berets and caps on Magheru Boulevard heralds a store with modest interior design, but this means little given the shelves of headgear waiting to be tested.

Aside from fur hats made in Poland and Ukraine, a multitude of felt options and classic models in many colors are created in Romania. Hand-knitted hats and shawls from Hunedoara villages and plenty of colorful leather gloves are among the many other accessories.

And all at very affordable prices.

Briolette du Cinema, 29 Magheru, corner

Eva – Romanian Design Launched in May, Eva – Romanian Design is a pop-up store seeking to demonstrate that an urban experiment can

with Biserica Amzei; Briolette Boutique, 12 Ion Campineanu Musette Comfort and a classic feminine look, designed by an Italian team, are what characterize the Romanian-based footwear brand Musette. Bags, clutches and belts, defined by color and style, are also manufactured under the same name. Cristhelen B is Musette’s premium brand for woman, an exclusive line produced in limited editions. For men, the Giannini line of shoes and accessories is made to the same high standards of quality and affordability.

114 Calea Victoriei, Baneasa Shopping City, Bucuresti Mall, Unirea Shopping Center, Promenada Mall, Mall Plaza, AFI Palace Controceni. www.musettegroup.ro Nissa A one hundred percent Romanian apparel brand for women with a modern-classical style in keeping with the latest international trends, but a very good price/quality ratio. There is a network of shops, most of them in malls, but also a flagship store close to Romana Square (39 Dacia Blvd.).

Unirea Shopping Center, AFI Palace Cotroceni, Cora Pantelimon, Centrul Comercial Feeria-Baneasa, Centrul Comercial Orhideea. www.nissa.ro Sarto Made to Measure At Sarto, the clothes are made in Italy, after the client is measured. The final adjustments are carried out in the Bucharest workshop, with the entire process taking up to four weeks. For

Sepala The footwear brand Sepala, Mihaela Glavan’s high-end line, embraces minimalism. Shoes are simple, with welldefined cuts and cutouts. The musthaves of the A/W collection are the over-the-knee boots and high platform shoes, which channel the sexy look, in parallel with low biker-inspired boots.

Sepala Kids and RSM for men make the shopping experience one for the family.

104 Sabinelor Street. www.sepala.ro Trend’s by Adina Buzatu A touch of refinement and an interwar atmosphere grace the first boutique dedicated mainly to men’s apparel.

Shoes from Ortigni and Bensimon, Albert Thurston braces, Borsalino hats, plus an impressive collection of cufflinks and ties are all on offer. From the classic casual and elegant designs of Messagerie to the progressive Babette Wasserman, the pieces are versatile and easy to match. But if you’re not sure, don’t hesitate to ask the owner, who is always pleased to help style customers.

83-85 Calea Victoriei (Downtown boutique), Baneasa Shopping City, ground floor. www.adinabuzatu.ro Tudor. Personal tailor For a perfect item of clothing, the material should combine almost seamlessly with the stitching. Tudor.Personal Tailor works with four local tailors with experience of 30-55 years in the field, but also draws on expertise from specialists in marketing, fabric and back office operations.

1-3 Episcopiei Street (inside Athenee Palace Hilton). www.tudor-tailor.com Venera Arapu A mono-brand store with a distinctive interior design signature, fashion designer Venera Arapu presents a range of clothing from evening gowns to shirts and coats, all suited to strong and non-conformist women, yet endowed with refinement and elegance.

42 Calea Dorobantilor Street. www.venera-arapu.com oana.vasiliu@business-review.ro

www.business-review.eu Business Review | December 9 - 15, 2013

CITY 21

FILM REVIEW

Inside Llewyn Davis

Feline low: Oscar Isaac plays a depressive folk singer in this Coen brothers tale

∫ DEBBIE STOWE Director: Ethan and Joel Coen Starring: Oscar Isaac, Carey Mulligan, John Goodman, Garrett Hedlund, Justin Timberlake On at: Cinema City Cotroceni, Grand Cinema Digiplex, Hollywood Multiplex, Movieplex, Noul Cinematograf al Regizorului Roman, Studio It’s not a great place to be, inside Llewyn Davis. It’s 1961, and the titular folk singer is trying – and failing – to earn some money and appreciation on the Greenwich Village music scene in New York. His former bandmate has thrown himself off a bridge, his dad’s near catatonic in a nursing home, and Llewyn has been reduced to kipping on friends’ sofas because he’s homeless.

To top it all off, he’s gone and lost the cat he was meant to be looking after for some elderly friends. The only thing the depressive musician does seem to be successful at is impregnating women during short and unhappy flings, which further adds to his money worries as he has to keep stumping up for abortions.

The Coen brothers’ film strums along with a few days in Llewyn’s loserish life. He does some stuff – records a song, goes on a road trip, visits family – but it’s all fairly inconsequential. The film is less concerned with plot than with contemplating the hard knocks the music business deals to an aspiring artist and the themes of failure and rejection this invites, as well as the hapless singer-songwriter’s dysfunctional interactions with friends, family, exlovers, fellow musicians, promoters and randoms.

Top billing, though, goes to the music itself, with what narrative there is frequently pausing for Llewyn and co to deliver full-length folk numbers. A couple of them, including a delightfully silly novelty song, come from Justin

Timberlake, in very unusual musical territory, playing the husband of Llewyn’s most recent disgruntled lover (Carey Mulligan).

Quirky characters are the mainstay of the Coen brothers’ work, and their regular collaborator John Goodman pops up again in an amusing cameo as a loquacious junkie who makes a drive to Chicago much longer than it should be. Mulligan is suitably sweary among the myriad misfits that make up the scene, while Ethan Phillips and Robin Bartlett, as elderly academics the Gorfeins, provide the sole emotional warmth.

Llewyn himself is too gloomy and withdrawn to be a memorable Coen character – he’s no dude. Nor is he particularly likeable: struggling artists may feel some sympathy as indignity is heaped on frustration, but he brings much of his misery on himself, missing the opportunities and snubbing the chances of redemption that come his way.

But despite the morose protagonist and bleak wintry landscape that’s as hostile to him as the music business, the movie is often funny, thanks to Goodman’s well observed and colorful performance and the plot strand that sees Llewyn struggle to look after the Gorfeins’ cat, as well as some good lines.

Overall, though, the laughs give way to sadness at the artist’s lot. It is summed up perfectly in a scene where Llewyn has managed to persuade a bigcheese Chicago promoter to allow him an impromptu audition. After a few agonizing moments when you think he is going to choke, he comes out with a touching folk ballad, beautifully performed. The camera slowly homes in on the promoter, who seems impressed, and it appears Llewyn might have got his big break. Then the promoter says simply, “I don’t see any money in this.” debbie.stowe@business-review.ro

www.business-review.eu Business Review | December 9 - 15, 2013

22 CITY

DON’T MISS / BUCHAREST INTERNATIONAL

BOOK LAUNCH

EXPERIMENTAL FILM FESTIVAL

French Embassy celebrates 120 years with photography book Courtesy of French Embassy

oana.vasiliu@business-review.ro

oana.vasiliu@business-review.ro

EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi SALES & EVENTS Sales managers: Ana-Maria Nedelcu, Oana Albu, Raluca Comanescu Sales executives: Ana Maria Andrei MARKETING Ana-Maria Stanca, Catalina Costiuc, Iulia Mizgan PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat

PUBLISHER Bloc Notes Media ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 EMAILS editorial@business-review.ro sales@business-review.ro events@business-review.ro

Courtesy of BIEFF

worldwide, such as Karlovy Vary 2013, Melbourne 2013 and Viennale 2013.

Deutsch says his work follows the life of Shirley, a liberated “woman in America in the 1930s, 40s, 50s, and early 60s. A woman who would like to influence the course of history with her professional and socio-political involvement, who does not accept the reality of the Depression years, WWII, the McCarthy era, race conflicts and civil rights campaigns as given, but rather as generated and adjustable. A woman whose work as an actress has familiarized her with the staging of reality, the questioning and shaping of it; an actress who doesn’t identify her purpose and future with that of solo success or stardom, but who strives to give social potency to theatre as part of a collective. A woman who cannot identify with the traditional role model of a wife yet longs to have a life partner.”

France’s Embassy in Bucharest has marked 120 years since the inauguration of its building by launching a book of photographs of the premises, in which Franco-Romanian relations have been nurtured over the years.“We wanted to do this because everyone in Bucharest knows this house but no one knows its true history: nobody has so far conducted historical research into the house to explain what it is and what it was,” said France’s Ambassador Philippe Gustin at the launch event.

The book, entitled France’s Residence in Romania, consists of three parts: the history of the building from an architectural standpoint; a “tour” of the house, with descriptions of each piece of furniture and each painting; and contributions by cultural and political figures, who share their memories of France’s Residence in Romania.

Architect Bogdan Fezi, one of the authors, considers the building a flagship landmark of Franco-Romanian relations.

Gustin commented, “General Berthelot was in this house, the black moments of communism were also lived there and de Gaulle stayed here for four days in 1968.” He also mentioned the agreement with carmaker Dacia, and the establishment of the Oltcit plant among the pivotal occasions that have taken place under the embassy roof.

“On December 25, 1989, emergency medical specialists that had been brought in from Paris started to arrive at the house, because we thought the Revolution would be extremely bloody,” Gustin added.

British director Peter Greenaway, the honorary president of the festival, is among the big names in film who have been supporting BIEFF since 2012

∫ OANA VASILIU December 11-15 Cinema Studio and Cinema Elvira Popescu The Bucharest International Experimental Film Festival (BIEFF) will connect Romanian audiences to the latest trends in film and visual art once again. During the festival, moviegoers will be able to enjoy a variety of pictures from the top European film festivals, screened in Bucharest by BIEFF through cultural partnerships. With the British director Peter Greenaway and many other soonto-be-revealed surprise guests, BIEFF is promoting Romanian cinema once again, both locally and internationally.

During the fourth run of BIEFF, the public will have a unique chance to watch some of the most daring films of 2013, selected from the most prestigious international film festivals, as well as original Romanian productions.

Beside the already established sections of the festival, the International Competition and Romanian Cinematic Experiments, this year BIEFF is launching three new and special programs: Golden Shorts – Best Films in Major Festival, which will showcase the winners from Cannes, Berlin, Locarno and Venice, the CINE-DANS program from Holland, representing the meeting between cinema and choreography, and Portuguese Miracle, the shorts-up productions of the past two years.

At the closing ceremony of the 2013 run, BIEFF will stage the Romanian premiere of the latest film from the renowned Austrian visual artist Gustav Deutsch, Shirley – Visions of Reality. The special screening will take place in the presence of the filmmaker at Cinema Studio, on Sunday, December 15. Following its premiere at Berlinale, the film received critical acclaim and had an impressive festival career, being screened at prestigious events and museums 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