Business Review Issue 41/2013 December 16 - 22, 2013 - January 20, 2014

INTERVIEW: In 15 years on the market, GarantiBank has expanded its focus and seen the local financial sector mature.

CEO Ufuk Tandogan tells BR about the landmarks on the lender’s journey and how it continues to innovate »page 12

ROMANIA’S PREMIER BUSINESS WE

December 16 - 22, 2013 - January 20, 2014 / VOLUME 17, NUMBER 41

B reade R wishes its rs a h seaso a n. We ppy holida y will be with t h 2014 e first iss back u on Ja e nuary of 20th.

Changing consumer behavior, an economic downturn and an evolving workforce, the firms that have been present in Romania for 15 years have seen it all. BR hears how some of these players have fared through the years » page 7

T OUOW! N

NEWS

CITY

Team talk

Happy New Year!

Technology group Teamnet is planning to move into 12 new markets in Central and Eastern Europe, the Middle East and North Africa by 2018

Get your glad rags on and get ready to ring in 2014! BR lists the top spots in Bucharest to kick back and party down on New Year’s Eve

» page 18

» page 21

www.business-review.ro Business Review | December 16 - 22, 2013 - January 20, 2014

4 NEWS

3Q Laszlo Diosi CEO of OTP Bank Romania

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

Daniel Barbu

Holding in 1998. Under her tenure, the company doubled its market share to 7 percent in 2013 and maintained its profitability. The company aims to sell 5,000 new cars by year end.

has resigned from his position as minister of culture after saying that he couldn’t understand how the government spends half as much on the national HIV/AIDS program as it does on all the programs of the Ministry of Culture combined. He had held the position since December last year. Barbu is a professor of political science at the Bucharest University.

He has been a member of the National Liberal Party since 2012. The same year he was elected senator and served for 20 days as counselor to then interim president Crin Antonescu. He had served as state counselor once before, during the term of President Emil Constantinescu.

Peter Copetti What were the growth areas for the lender this year and what is the focus for 2014?

This year we have registered growth on the lending side, and we have stabilized the banking income and the costs. We have a very prudent approach to provisioning and our rate of non-performing loans is below the market average at 18 percent. We will continue to grow organically next year and we will continue lending in the retail segment, and to SMEs and corporates.

Do you plan to make acquisitions?

Our parent bank has already declared on numerous occasions that in Romania, Croatia, Serbia and Slovakia we also need to grow through acquisitions.

So we discuss and analyze each opportunity. If we find a real opportunity to grow through acquisition, we have the money and we will do it.

What is your outlook for the local economy in 2014 and how can lenders boost financing for SMEs? We believe that GDP will grow again between 2 and 3 percent, depending on the agricultural output. We hope in this election year to be able to maintain the stability of the budget.

We cooperate with very well with the National Fund for the Guarantee of Loans of Small and Medium Sized Enterprises (FNGCIMM) and I know we will have RON 2 million (EUR 450,000) next year, which is a very good idea. There also needs to be other programs such as Kogalniceanu (e.n. a government program designed to help SMEs get loans at preferential costs).

It has been riskier for SMEs during the crisis, but since the crisis I think we understand this business better. Personally, I have seen crazy competition for clients that are SMEs.

ovidiu.posirca@business-review.ro

will take the helm at Porsche Inter Auto Romania, part of the global retail network of Porsche Holding, this February. He is replacing Dana Cortina, who will join the general management of Volkswagen Group Retail Spain, after managing local operations for the last eight years.

Copetti joined Porsche Holding in 1992, and became general manager of Porsche Wien Simmering in 1999.

Cortina started working for Porsche

Emanuel Bancila

has joined the local subsidiary of EY as executive director in the tax and legal department. He will coordinate projects related to the management of tax dispute resolution and litigation. He is a member of the Bucharest Bar and has over 15 years of professional experience. Also, Alex Slujitoru has joined the Big Four company as manager in the tax and legal department. Slujitoru is a member of the Bucharest Bar with over six years of experience in areas such as fiscal consultancy, dispute resolution, tax, civil and commercial litigation, as well as real estate matters.

They have both previously held similar positions in a Romanian law firm associated with another Big Four company.

Cristian Herghelegiu

has been appointed CEO of Gecad Net, after previously acting as CEO of the Elefant.ro online bookstore, since February 2013. This represents a return for the manager to Gecad, after he previously worked for the group as head of

software development between 2000 and 2002, according to his LinkedIn profile. Herghelegiu is one of the most experienced managers in the IT industry. Between November 2011 and February 2013, he acted as country manager of PayU Romania (formerly Gecad Romania), which was taken over by the Naspers fund.

Between August 2009 and April 2011, he was the general manager for Romania of Central Europe On-Demand. He also worked as Microsoft Dynamics lead at Microsoft between January 2007 and October 2008.

Claudiu Saftoiu

submitted his resignation from the position of president and general manager of the public television channel, TVR, just hours before the activity report for 2012 was due for debate in Parliament, according to local media reports. He was elected president of the administration board of the public television service (SRTV) at the end of June 2013.

Saftoiu was presidential counselor from 2004, during Traian Basescu’s first term as president, until 2006, when he was appointed director of the Foreign Intelligence Service. In March 2007, he resigned from this role.

AUTOMOTIVE

ALD Automotive expects EUR 30 million turnover this year

O

perational leasing firm ALD Automotive expects EUR 30 million in turnover this year and to reach a fleet of 7,400 vehicles, on the backdrop of a market that grew slightly to EUR 200 million because of cautious consumers and some legal changes.

Shane Dowling, general manager at ALD Automotive, the subsidiary of BRD – Groupe Societe Generale and the ALD Automotive Group, said the market had been negatively influenced by the limitation of the deductibility amortization and the stamp tax.

“This eco tax has caused a far worse impact on the market: it has a direct cost impact on new vehicles contracted under operational leasing and on the used vehicles sold at the end of their leasing term,” Dowling told BR. He added that technically, both the firm’s corporate clients using vehicle fleets and the final purchasers of its used cars will bear the cost of the new tax.

ALD Automotive has up to 2,000 vehicles that are exposed to the eco tax, according to Dowling.

The firm saw a 6 percent expansion

Companies will buy more new cars in 2014

Shane Dowling, general manager at ALD Automotive

in its number of clients to 259 at the end of October, originating from a wide array of fields including telecom, banking and pharmaceuticals.

He says the company aims to sign another 1,000 new contracts next year, with its portfolio comprising almost entirely international companies.

According to data from the Association of Car Producers and Importers (APIA), registrations of new passenger cars fell 17 percent in the first nine months of this year against the same period of last year. The company car segment generated the highest growth in the market, accounting for 73 percent of new car sales by October.“This is why I believe 2014 will bring an increase in the number of new cars sold for companies, as part of their program of finding efficient financial and logistic solutions. Regarding the used vehicle market, next year we hope to see a positive evolution of the stamp tax, which this year has caused negative effects on the operational leasing sector,” said Dowling. ∫ Ovidiu Posirca In last week’s edition of Business Review it was stated that Enel Green Power had bought a photovoltaic project with a capacity of up to 5MW from E-power Holding. In fact the project was bought from several Cyprus-based companies.

www.business-review.ro Business Review | December 16 - 22, 2013 - January 20, 2014

NEWS 5

TECH

MB Telecom plans EUR 5 million expansion in Switzerland

Photo: Silviu Pal

Mircea Tudor, president of MB Telecom

M

B Telecom, a Romanian producer of hi-tech security equipment, is looking to expand its production capacity in Switzerland, as the company is venturing onto international markets to sell sophisticated technology.

Mircea Tudor, president of MB Telecom, says the new plant will require an investment of CHF 6 million (EUR 5 million) and will help double the production of a new airplane scanner. At present, it has a yearly production capacity of 30

cargo scanners at its plant in Otopeni.

“Switzerland offers conditions and attractiveness which are staggering for investors. Cantonal profit tax stands at 8 percent, which can be negotiated. I obtained five years at a 0 rate and five more years at 5 percent instead of 8, adding to the 4 percent federal profit tax,” Tudor told BR. “The real estate tax for industrial properties stands at 0.5 percent and 0.15 percent for the special constructions tax.

There are good subsidies from the can-

tons and from the federal level for research programs, and the development of top technologies,” he added.

The company’s focus has remained on innovation, with around half of its 130 people working directly or indirectly in research & development (R&D). This strategy seems to have paid off. In 2009, MB Telecom won the grand prize at the International Exhibition of Inventions in Geneva for a high-performance cargo screening system called Roboscan 1MC. According to Tudor, sales of this product exceeded EUR 20 million. This year, the company won the grand prize again in Geneva for a new aircraft screening system called Roboscan 2MW Aeria.

The Romanian firm is the first company in history to have claimed the grand prize in Geneva twice. MB Telecom has implemented a series of European projects securing the country’s eastern border, which is also the EU’s border, backed by the EU. The new aircraft scanner can be used by airport administrations at border controls as it is able to detect smuggled drugs, explosives, radioactive substances and large amounts of cash. The Romanian company has reported an average turnover of around EUR 12-13 million in the past three years. ∫ Ovidiu Posirca

LEGAL

Romania’s Parliament comes under fire over penal code amendments

A

s the Chamber of Deputies last lowing a request by Romania’s High week passed a series of amend- Court.

“It is very discouraging that these rements to the Fiscal Code that excluded MPs and the president from visions were passed with no consultathe category of public worker, thereby tion, no debate, and no opportunity limiting anti-corruption investigations, for the judicial authorities or civil society foreign embassies expressed concern to respond to the proposed amendthat such measures would jeopardize ments,” said the US Embassy in the country’s efforts to combat corrup- Bucharest in a statement.

The Netherlands Embassy noted tion and impact the rule of law.

Under a special law, the newly ap- that it was watching the amendments proved provisions will also apply to “with concern”, while the German Emmembers of the liberal professions, not bassy said that anti-corruption institufinanced by the state budget, such as tions need to be independent and protected from political pressure. Martin lawyers and notaries.

President Traian Basescu promised Harris, the UK Ambassador to Romania, to send the bill back to Parliament, said the DNA and the ANI needed to be adding that the amendments were “dra- backed by everyone because they repmatic” and would “destroy decades of resented “the reform engine in Romawork and activity of the anti-corruption nia.”

The DNA said that the cases of 28 institutions” such as the National Anticorruption Directorate (DNA) and the MPs were currently in different stages of prosecution, and they could be acNational Integrity Agency (ANI).

The Constitutional Court will analyze quitted or freed from jail because of the amendments on January 15, fol- the new amendments. Under the ap-

proved changes, exempted categories, such as MPs, could not be prosecuted by the DNA for acts of corruption such as bribery and abuse of office.

Mark Gray, a spokesperson for the European Commission (EC), told news portal www.hotnews.ro that any changes to the anti-corruption framework would be included in the next Mechanism for Cooperation and Verification (MCV) report. This is a tool used by the EC, the executive arm of the EU, to assess the judicial reform and the fight against corruption for Romania and Bulgaria, through which efforts to combat organized crime are also evaluated.

Romanian PM Victor Ponta said the amendments would have to be discussed again with the Ministry of Justice and the Superior Council of Magistracy, and that the European Commission, the executive arm of the EU, would be informed of the changes. ∫ Ovidiu Posirca

EDITORIAL Anca Ionita Publisher

The bet on stability and trust We started the year celebrating at the Business Review Awards Gala and we’ve closed it with the Romanian Investors Forum, the annual event dedicated to Romanian companies and entrepreneurs that successfully made a difference in 2013.

Our weekly coverage of the economy and the socio-political stage has shown that private businesses have continued to find new niches for healthy development despite the highly unpredictable political, legal and fiscal frame, the lack of strategic planning on the part of the government and insufficient financing.

Like Business Review, many of these companies have this year celebrated 15 years of activity in Romania, an anniversary that stands as a proof of their stability, the solidity of their businesses and their trust in local economy. For them Romania is not a potential, but a reality.

This last issue of 2013 is dedicated to their success on a market hit by the financial crisis and austerity measures, in which keeping the course steady has proven difficult for many. Above all, these companies have shown that one major ingredient for success in doing business here is trust in one’s work and its absolute necessity for the economy and people.

Doing business in Romania next year should see the improvement of a closer EU institutional and legislative alignment, the birth of a new eve of civility in the economic and political areas. Despite the fact that 2014 is an election year, I trust the business instinct of the local and international companies that have invested in Romania, and their determination to help the economy get back closer to its 2008 level.

See you in early 2014, when we will come together to celebrate those companies that were successful in 2013 at the Business Review Awards Gala! ∫

www.business-review.eu Business Review | December 16 - 22, 2013 - January 20, 2014

6 INTERVIEW

Deal making set to gain momentum in 2014 Florian Nitu, managing partner at Romanian independent law firm Popovici Nitu & Asociatii, expects the local mergers & acquisitions (M&A) market to slightly pick up next year, after an atypical 2013 marked by a diversified mix of deals, citing growing interest from foreign investors to step into Romania. ∫ OVIDIU POSIRCA

CV Florian Nitu

What do investment funds think of Romania?

They are prospecting and one may see interest, in practical terms. And such interest may get projects at work if greater visibility for the country and market is made possible through public policies and immediate executive measures. If these factors combine, I would say there are chances to get foreign investors activity in Romania at a reasonable pace.

How did Popovici Nitu & Asociatii’s M&A practice do this year?

In our firm, the M&A practice has been within (e.n. the projected) the general parameters this year. The number of deals is slightly down on, but the work volumes have increased. We have had a high number of deals that did not complete and this is why our statistics may look inferior compared to last years.

Why did these deals fail?

Firstly, the lack of financing, so the intended leveraged transactions had failed, one in two, because of the banks.

And what is worse, some of the banks we have met in deals this year have been all way through inconsistent, on one hand declaring interest and availability, on the other imposing conditions simply killing the deal.

Secondly, I can quote three projects that have missed closing because of dif-

Photo: Popovici Nitu & Asociatii

How would you describe 2013 from the M&A perspective?

It has been an atypical year because we have had a peculiar combination of deals involving distressed businesses, start-ups materializing, long-waited exits, entrepreneurial initiatives that have ripened and yielded results, a number of successful greenfield projects, but equally, work-outs and corporate-debt restructurings and failed privatizations projects.

Otherwise, I may say 2012-2013 are likely remain the bottom line of the M&A activity in the last ten years (and I am not referring solely to number of deals transactions, but to the amount of capital invested as well) and can only hope that from now on there can only be growth. And indeed, unless disastrous strategic moves at the level of government and the lawmakers are made, Romania should return to foreign investors’ radar during 2014-2015.

is head of the firm’s M&A/privatization, real estate and international arbitration practices. Nitu also has experience in arbitration, with a special focus on privatizations, concessions, real estate and corporate disputes

ferences of opinion/expectations related to the target’s growth model.

There is still a large mid zone between buyers’ and sellers’ expectation. Convergence is still far.

How many people are currently working in the M&A department of Popovici Nitu & Asociatii?

We are different to our competitors here.

We are mainly a transactional law firm, meaning we focus on mergers and acquisitions, investment projects, deal making. As far as we know we are the only firm among the big players with four partners specializing in M&A. That enables us to handle say 6 to 8 transactions simultaneously, with a number of 22-25 lawyers. But there is always an M&A core team of 14 people. In overall the firms is grouping 80 lawyers and we got to this by growing organically in the past 10 years. Including other experts, staff, there are around 150 employees working in Popovici Nitu & Asociatii.

What is the average size of the deals you have worked on this year?

The average value is in the range of millions of Euro. I do not think we have done only deals over EUR 10 million, but also smaller ones, of EUR 3 million and EUR 5 million; the market is now at such standard levels.

What can you tell me about the firm’s turnover this year?

We are in line with the budget. Income generated in November and December is getting more and more weight in the overall and this why I can’t say now figures. But one mention still, the time of annual growth in double digit rates is gone. However, we continued to expand the operations, in spite of the turmoil and recession.

What share of total business did M&A account for this year?

M&A has always generated around 20 percent; in good years even around 25 percent. Statistically, none of our four practice pillars (Corporate/M&A, Projects, Public/Private & Litigation/Arbitration) has generated in average more than 20 percent in the overall business.

What is the firm’s profitability rate?

Our profitability rate is not as “spectacular” as that of others. We have had good years with margins of around 2530% percent and less good years with lower margins. We’ve never had margins of 40 percent, while some competitors had 60 percent. I do not think these margins are healthy (from own business and market standing perspective) or sustainable, and frankly, I do not think they are accurate.

Is there still pressure on fees? Are you in the EUR 150-300 an hour bracket?

I read with sympathy statements about hourly rates competitor lawyers pretend they sign and collect from clients.

Nowadays in Romania, it can’t be that a firm, even with its most senior people, is constantly billing at EUR 300 an hour.

If it happens a client is willing to spend EUR 300 on senior partner hour, that I agree, but not on regular basis. But the funnier thing is that lawyers who say they are charging EUR 300 per hour come to public auctions bidding 40 Euro per hour, and that in legally-complex projects.

On our end, based on the market particularities today and our business model, our cost matrix, and head count treatment, we are offering our service for weighted average rates of EUR 150EUR 170 per hour.

What are the law firm’s plans for 2014?

There are a number of four business drivers in which we have extensively invested since incorporation and will continue to focus on them.

First, we will always have an interest in developing long-standing relationships, proper partnerships, with key M&A players, such as institutional investors and investment funds.

Secondly, in recent years we have developed significantly the litigation and the international arbitration group, and will keep investing in resources and skills here.

Thirdly, there is the public to private equation, where we focus on the private component. We include here public acquisitions, infrastructure projects, energy projects, legal and tax.

And finally, there is the projects area, including real estate and project finance, green-field or brown. ovidiu.posirca@business-review.ro

www.business-review.ro Business Review | December 16 - 22, 2013 - January 20, 2014

15 YEARS IN ROMANIA 7

15 and counting: the survivors of a decade and a half on the local market Several major companies are marking 15 years of presence in Romania this year, which can be seen as a sign of their good profitability, a comfortable market share and consolidation of their brand on the local landscape. systemic problems. Businesspeople Top 5 commerce companies founded in 1998, ranked by 2012 turnover have succeeded in their endeavors only by being resilient, creative and Company 2012 turnover (RON) OMV Petrom Marketing, Intersnack, adaptable, more or less reliant on OMV Petrom Marketing 15,092,697,104 Carpatcement, Garanti Leasing, John- their own capabilities and drive.

Sanofi Aventis Romania SRL 952,969,626 But there is room for optimism, son Wax, Meda Prod ’98, and ContiComfert SRL 571,524,897 nental Automotive Products. What do say the CEOs of both large and smaller MSC Romania Shipping 166,820,333 all these companies have in common? companies active locally. According Benz Oil SRL 153,937,907 They are all celebrating 15 years on to the results of the 16th edition of the the Romanian market this year, and PwC Global CEO Survey for Romania, Source: * ONRC rank among the most significant released earlier this year, redefining brands that started up on the local relationships with all partners and scene in 1998. They are also among stakeholders, increasing the customer the Top 50 companies founded in base, addressing talent management complexity, EU and international changes include integrated programs 1998 ranked by their turnover in 2012, and rethinking the organizational standards and global interconnectiv- for entrepreneurs and SMEs, the acbased on data provided by the Na- structure are the main items on the ity. The difficulty rests with the dis- celeration of EU funds absorption, agendas of local CEOs. tional Trade Register Office (ONRC). crepancies between urban and rural building quality infrastructure, priorCEOs in Romania seem to have re- areas, certain regions as well as fields itizing key industries and projects, tax The cumulated turnover posted by the top ten players in the 2012 ranking gained trust in their companies’ of activity and the public sector areas, and legal predictability and eliminais RON 31.8 billion (EUR 7.14 billion)* growth perspectives, both on the including privatizations and state- tion of corruption,” she says.

But the local business environwhile the companies making up the short and medium term. Some 42 per- owned companies,” says Daniela Top 50 had a total turnover of RON cent of the survey respondents de- Nemoianu, executive partner at ment is still far from being a level 40.6 billion (EUR 9.1 billion). Produc- clared themselves very confident of KPMG. Plus, the EU membership fi- playing field. In the absence of stratetion and commerce are the industries their company’s growth next year, nancial balance has not been in Ro- gic priorities and a solid and sustainwith the most representatives in the while 60 percent said the same about mania’s favor so far, while the public able country model, the economy is Top 50, while construction, trans- the next three years. However, these debt has increased dramatically. distorted by severe corruption, tax portation, recycling, finance, insur- expectations seem quite discon- “2013 has seen the business environ- evasion and a low tax take, as well as ance, services, energy, telecom, and nected from the global growth per- ment make a welcome move towards the lack of sufficient financing, inmining have the fewest players on the spectives, as opinions on the general accountability, and a unified, consis- cluding a low level of EU funds. “The list. Half of the names in the Top 50 economic situation are more reserved. tent strategic view regarding country recent sudden increase of taxation have their registered office in In the same study, 47 percent of re- development. We can only hope that will dent investment volumes and Bucharest, while Timis, Mehedinti, spondents said they expected the the alignment of the political vectors businesses’ appetite for Romania, as Bacau, Constanta, Cluj, Harghita, economy to stagnate this year, and 38 will follow soon through pragmatic such an unpredictable environment Sibiu, Satu Mare, Teleorman, percent predicted a decline in the eco- and responsible breakthroughs,” adds can only cause business distress and pressure on consumers. Adding the Dambovita, Galati, Brasov, Dolj, Mara- nomic climate (compared to the the executive partner. mures and Arad also host registered global average of 28 percent).

According to the most recent avail- authorities’ massive bureaucracy and As for strategic plans, the re- able market data, the level of foreign inefficiency, the poor infrastructure offices of Top 50 firms.

The 15 years of business commit- searchers found that most CEOs will direct investments (FDI) continued to and the ‘brain drain’ phenomenon, it ment on the Romanian market cover be focusing on opportunities for or- drop this year from 2012. According to is obvious that we currently face siga decade of very attractive growth fol- ganic growth in the internal market Ziarul Financiar, FDI fell by 30 per- nificant risks in terms of decreasing lowed by five years of crisis chal- (33 percent) and on developing new cent in the first seven months of 2013 competitiveness, unbalanced, lowlenges, combined with the country’s products and services (29 percent), on the same period of 2012 to EUR level growth, and sustainable future development gap. Players have faced whereas only 5 percent of respon- 946 million. Although the local econ- development,” concludes the consulta wide range of difficulties in contin- dents are considering new external omy grew by 1.8 percent in the first ant.

But Radenko Prnja, general manuing their business in the past few markets. On the other hand, 15 per- half of this year on the same period of years, and some needed to take se- cent of respondents consider the ex- 2012, Romania did not manage to be- ager of Flextronics Romania, a vere measures in order to increase pansion of their operations in existing come more attractive in the eyes of provider of electronics manufacturtheir cost-efficiency. Much more external markets as the best option foreign investors. According to the ing services set up in Timisoara back could have been done during this pe- for growth. same publication, the country regis- in 1998, sees Romania as an excellent But how has the scene evolved tered EUR 1.6 billion in FDI last year, region to do business in. “It is also deriod for the modernization of the country, and Romania has subse- since 1998? “The business environ- the lowest level in the past decade, veloping as a domestic market with quently suffered a significant loss of ment and the economy in general while the local economy posted 0.7 many companies in electronics and the automotive sector manufacturing opportunity and an aggravation of have progressed in terms of diversity, percent growth in 2012.

Asked to what extent the state has in the region. With Romania joining encouraged foreign investors to come the EU we are looking forward to the Top 5 production companies founded in 1998, ranked by 2012 turnover to Romania and local businesses to subsequent simplification of exports,” Company 2012 turnover (RON) develop in the past 15 years, he adds.

Nemoianu says that it has proved to Continental Automotive Products SRL 2,376,683,119 be weak, disorganized and inconsis- Plenty of challenges…

S.N. Nuclearelectrica SA 1,653,156,406 tent for obvious reasons. “The incen- During their 15 years on the Romanian Carpatcement Holding SA 807,945,334 tives granted in the past helped market, the firms that have managed Regia Autonoma pt. Activitati Nucleare 636,841,401 raise investors’ interest; however, to pull through the crisis and Intersnack Romania SRL 275,067,165 the current situation is not likely to maintain or even improve their competitively attract or encourage position have faced a lot of Source: * ONRC investments in Romania. Necessary challenges.

∫ ANDA SEBESI

8 15 YEARS IN ROMANIA

www.business-review.ro Business Review | December 16 - 22, 2013 - January 20, 2014 Regardless of the field of activity or size …that force businesses to of a company, market conditions that adjust change rapidly lead to a range of prob- To cope with an economic environlems that need to be fixed in order to ment that is constantly in flux, firms maintain the business balance. For have needed to adjust their initial Garanti Bank, for example, the main strategy to different market condidifficulties have come from the fluctu- tions over the 15 years. “Faced with a ating economic environment over re- challenging economic environment, cent years. The market was very we decided to consolidate projects, different back in 1998, when the lender extend our presence on the market entered on the Romanian market, and and come up with innovative it had to cope with a banking sector solutions to help our customers, that was less developed, and had fewer thereby growing together,” says players and regulations. “It was the be- Garanti’s Tandogan. The company has ginning of what we call today a true extended its national presence banking market,” says Ufuk Tandogan, through branches and alternative deCEO of Garanti Group Romania. “The livery channels, invested in innovamarket’s development was a process tion and technology, diversified its that took time, with complex changes banking products and services for all and variations, passing through a market segments (corporate, SME and worldwide economic downturn. Our retail) and extended its operations by main challenge was to adapt to the integrating Garanti Leasing, Garanti market reality and manage to combine Consumer Finance and Garanti Mortmeasures to combat the effects of the gage, thereby becoming Garanti crisis with ones targeted at maintaining Group. the company’s strategic focus (longBut the affiliation to its mother term, sustainable and intelligent bank, Turkiye Garanti Bankasi, has growth).” Through its 15 years here, the proved to be a crucial advantage for lender has focused on growing in a sus- the lender’s operations in Romania tainable manner. over the years. “We benefit from the Elsewhere, Xerox Romania this year extensive crisis management knowcelebrates 45 years on the Romanian how of our mother bank, Turkiye market and 15 years since it started to Garanti Bankasi, which is registering communicate the advantages of docu- growth year-on-year and has already ment management services. “It was a gone through tough market conditime when companies hardly saw be- tions, more than ten years ago. yond ‘xerox’. We started by offering Through its support and by having a services for customers’ equipment at team of people with vast experience, their headquarters. Telecom compa- we have managed to overcome the nies and financial-banking institutions difficult periods and grow,” adds the were among our first customers,” says Garanti Group Romania CEO. Gabriel Pantelimon, country general He says that the company has manmanager at Xerox Romania. He adds aged to post growth year on year, not that with the increase in its number of because it found a recipe for business customers, Xerox diversified its range success, but because it adapted to of services, technologies and software market conditions while its main tools and customized them according focus remained at all times on its to the needs of each company. Plus, customers’ needs. “Customer loyalty this year the firm launched Connec- is important to our business, as the tKey, a software platform integrated in customer stands at the core of our the majority of Xerox’s multifunctional. activity. Hence, we place great emphaIt brings additional control, mobility sis on offering them personalized and security for companies’ data. and innovative solutions that improve Asked how the local business envi- their GarantiBank experience, ronment has evolved in the past and help them grow through decade and a half, Pantelimon says these tough economic times,” says that it is much more dynamic, marked Tandogan. by greater care over budgets and reElsewhere, for Flextronics the sources, and more demanding over main challenges over the last 15 years services. “Fifteen years ago companies were the nature of the global economy hardly understood the big picture of and the development of a local team our services while now there are more with the high level of skills required. and more companies that choose to “We have succeeded by developing our outsource them to specialists,” says offering in the medium- and the Xerox Romania representative. lower-volume, higher-mix arena “The majority of the technologies we where our flexibility and agility have can’t live without now are very young, proved valuable. The Flextronics with a background of less than two team in Romania has been a great sucdecades. At present the focus is on cess and while we began with many mobility, cloud and high-speed tech- expatriates training local staff, we nologies that monitor and control each now have localized the skills – and cost and document. Many employees in fact our facility trains other Flexwork outside their office and need tronics staff for the region,” says Prnja. high-performing mobile technologies He adds that the level of skilled staff that allow them to access the materials available to the company is valuable they need all the time and everywhere. for the future.

Back in 1998 we didn’t even think about it.” continued on page 11

www.business-review.ro Business Review | December 16 - 22, 2013 - January 20, 2014

10 15 YEARS IN ROMANIA

RANK

Top 20 companies founded in 1998 ranked by 2012 turnover COMPANY

1

OMV Petrom Marketing SRL

2

Lukoil Romania SRL

3

ACTIVITY*

2012 RON TURNOVER

ADRESS

CONTACT

specialized retail

15,092,697,104

22 Coralilor Street., 1st floor, Infinity Building, Oval B, 1st district, Bucharest

021.402.22.01

energy

6,030,862,944

6 Elena Vacarescu Street, 1st district, Bucharest

021.232.82.20

2,376,683,119

9 Avram Imbroane Street, Timisoara, Timis County

0256.305.200

transportation

1,668,976,646

38 Dinicu Golescu Avenue, 1st district, Bucharest

021.319.03.22

Continental Automotive production Products SRL

4

Societatea Nationala de Transport Feroviar de Calatori-CFR – Calatori SA

5

Societatea Nationala Nuclearelectrica SA

production of electrical energy

1,653,156,406

65 Polona Street, 1st district, Bucharest

021.203.82.00

6

Compania Nationala Posta Romana SA

services

1,205,532,168

140 Dacia Avenue, 3-11 floors, 2nd district, Bucharest

021.200.92.58

7

Compania Nationala de Cai Ferate CFR SA

transportation

1,111,726,009

38 Dinicu Golescu Avenue, 1st district, Bucharest

021.319.25.26

8

Societatea Nationala de Transport Feroviar de transportation Marfa CFR – Marfa SA

970,399,645

38 Dinicu Golescu Avenue, 1st district, Bucharest

021.225.11.12

9

Sanofi-Aventis Romania SRL

wholesale trade of pharmaceutical products

952,969,626

80 Izvor street, 6-11 floor, 5th district, Bucharest

0729.168.744

10

Carpatcement Holding SA

production of cement

807,945,334

1A Bucuresti-Ploiesti Road, 1-4 floor, Bucharest Business Park, Building C2, 1st district, Bucharest

021.311.59.75

636,841,401

1 Nicolae Iorga street, Drobeta-Turnu Severin, Mehedinti county

0252.326.147

construction

627,591,603

49 Cap. Av. Alexandru Serbanescu street, 1st district, Bucharest

021.335.53.36

wholesale trade of chemical products

571,524,897

34 Calea Moinesti, Bacau, Bacau county

0234.52.52.75

construction

458,900,643

32 Razoare street, 4th floor, lot 12,13, 6th district, Bucharest

021.233.03.72

350,182,985

5-7 Constantin Aricescu street, groundfloor, 1st district, Bucharest

0723.356.107

11

Regia Autonoma pentru production of other basic anorganic Activitati Nucleare RA chemical products

12

Astaldi SpA Italia, Sucursala Romania Bucuresti

13

Comfert SRL

14

Euro Construct Trading 98 SRL Societatea de

15 Asigurare-Reasigurare

insurance

City Insurance SA Societatea Nationala de Radiocomunicatii SA

telecommunications

330,144,616

103 Oltenitei Avenue, 4th district, Bucharest

021.307.30.01

17

Intersnack Romania SRL

manufacturing and preservation of potatoes

275,067,165

23 C, Calea Vitan street, 6th floor, 3rd district, Bucharest

0372.73.48.00

18

Rieker Romania SRL

production of footwear

269,631,141

139 Timisorii street, Lugos, Timis county

0256.201.175

19

Alico Asigurari Romania SA

20

Flextronics Romania SRL

insurance

259,616,608

47-53 Lascar Catargiu street, Europe House, 4th floor, 1st district, Bucharest

021.208.41.00

production of electronic modules

257,817,938

DN6, Calea Torontanului, Km 5.7, Timisoara, Timis county

0256.303.697

Companies are listed according to the 2012 turnover, as provided by the National Trade Registry ONRC. An extended version of this list will be available at www.business-review.eu. For additions to the list please email research@business-review.ro.

Source: ONRC ; *Business Review research

16

www.business-review.ro Business Review | December 16 - 22, 2013 - January 20, 2014

continued from page 8 As for Xerox Romania, the company initially provided document management services without being certain of the demand for them. But as the years passed and the market matured, companies started to need such services.

“In the past few years our strategy has focused on document management services and business processes, locally and internationally. Our services business line accounts for more than 50 percent of our total earnings, both locally and worldwide,” adds Pantelimon. In order to better meet the needs of its customers and offer them services at the same high quality level, the company has developed Xerox Partner Print Services (XPPS), a program that help SMEs optimize their businesses through a network of partners and the High Tech Alliance.

Local entrepreneurs also mark the big 1-5 Catalin Mahu, the owner of the La

Mama restaurant chain, Cafepedia coffee houses and Martinez Beach (beach and lounge), is one of the Romanian entrepreneurs celebrating 15 years on the local market this year. In his opinion, the main challenge for him was to extend his network while keeping the unity of the brand. “It is obvious that as you try to extend more, the higher the risks of diluting the message. The fact that we have managed to keep our constancy is a positive thing,” says Mahu. He adds that he thought that the best thing to do would be to keep the company’s values, invest in his products and be closer to his customers.

Mahu finds a huge difference between the current state of the Bucharest restaurant market and how it was in 1998. “There were about 500 restaurants in Bucharest back in 1998, and around 5,000-6,000 now. Plus, the market had just emerged back then and had increased from a year to another, while now it can contract by 20 percent in a year because of the financial crisis.”

Top 3 construction companies founded in 1998, ranked by 2012 turnover Company

2012 turnover (RON)

Astaldi SpA Italia Sucursala Romania Bucharest Euro Construct Trading 98 SRL Tirrena Scavi SpA Italia, Sucursala Cluj

627,591,603 458,900,643 211,088,074

Source: * ONRC

15 YEARS IN ROMANIA 11 Top 3 transportation companies founded in 1998, ranked by 2012 turnover Company

2012 turnover (RON)

SNTCF – CFR Calatori SA CN de Cai Ferate CFR SA SNTFM – CFR Marfa SA

1,668,976,646 1,111,726,009 970,399,645

Source: * ONRC

Cornelius Brody is another local entrepreneur who has managed to build a strong company now marking 15 years of operations in Romania this year.

“The obstacles we encountered during the first two years were almost insurmountable and it took about two years until we made our first sale in Germany. After that happened, we started to become more respected and known for the quality of our work, which led to a growth in business and an extraordinary level of client retention, over 90 percent,” says Cornelius Brody, founder and CEO at iQuest. According to company representatives, around 91 percent of iQuest’s business is carried out in the international market, with the local market representing the remaining 9 percent.

The firm is specialized in professional services and sells customized software solutions across Europe and the US. Headquartered in Germany, with local teams in Switzerland, Roma-

nia and the US, iQuest currently employs more than 500 people. “When we look back at the past 15 years, we see tremendous progress in many areas which we could not have imagined at the end of the 90s. We will see further advancement both for connected businesses as well as consumers and citizens during the coming decades.

These changes will be driven by increased computing power, ubiquitous high bandwidth and new devices, which will enable new forms of consumption and technology engagement such as smart devices, home automation and robotics. We are already seeing a boost in mobile, cloud computing and connected devices. This will also mean an explosion in big data,” adds Thomas Wittig, co-CEO at iQuest, citing the company’s advantages in delivering projects on the international market. anda.sebesi@business-review.ro

12 SPECIAL PROJECT / EXCELLENCE IN BUSINESS

www.business-review.eu Business Review | Dec 16 - 22, 2013 - Jan 20, 2014

15 YEARS OF EXCELL Garanti banks on customer orientation for sustainable growth

Ufuk Tandogan, CEO of Garanti Group Romania, tells Business Review about the group’s main achievements since its entrance on the local market back in 1998, and explains the importance of the bank’s affiliation to the Turkiye Garanti Bankasi. ∫ ANDA SEBESI This year GarantiBank marks 15 years of presence on the Romanian market. How does this impact on the bank’s business?

This is indeed an important year for Garanti Group because we are celebrating 15 years of growing with our customers. Over this period, GarantiBank has evolved from a branch of a foreign bank, operating mainly in the corporate segment, to a universal bank and powerful financial group, diversifying its products and services for all market segments. The group currently serves over 450,000 customers in Romania.

Furthermore, we’re talking now not only about a bank – GarantiBank – but about a diversified financial group, comprising three other companies: Garanti Leasing, Garanti Consumer Finance and Garanti Mortgage.

The bank has a national presence of 78 branches and the widest network of smart ATMs in the country, as it is committed to sustainable growth on the local market. As we have developed steadily over the past 15 years, we are confident that we will continue to grow in a healthy and sustainable manner into one of the leading players in the Romanian banking sector.

GarantiBank Romania registered a net profit of EUR 21.5 million in the first nine months of 2013. To what do you attribute these results?

GarantiBank’s steady development and successful strategy are also reflected in our financial results, namely a net profit of EUR 21.5 million in the first nine months of 2013, more than three times higher than during the same period of last year. The results were based on our efforts to provide competitive products and services, diversifying them for all market segments (retail, SME and corporate) and customizing them.

What new products and innovations have you introduced on the Romanian market this year?

We invest in technology and bringing

GARANTI GROUP ROMANIA IN NUMBERS Consolidated net profit in the first nine months of 2013: EUR 26.3 million Value of assets in the first nine months of 2013: EUR 1.843 billion Net profit of GarantiBank in the first nine months of 2013: EUR 21.5 million Number of GarantiBank branches: 78 Number of ATMs: 262 Numbers of POSs: 7,866 Number of issued cards: 230,000

useful products to the public, as innovation is part of our DNA. This year, we launched a project entirely based on the latest technology in the mobile payment domain – SEQR. It is an application that enables GarantiBank’s customers to see their real-time balance and pay in stores, restaurants and online using only their smartphones. Furthermore, we have expanded our network of smart ATMs and extended the real-time online loan application, iLoanU credit platform, by integrating it on the internet banking service Garanti Online. Through this integration, Garanti Online has become the most complex internet banking service on the local market.

Since 2007, the bank started catering to the retail and SME segments. How did this change reflect in the bank’s evolution on the local market?

We are currently very active in all areas (SME, retail and corporate) and have positive results from all these business segments, because we have succeeded in establishing mutually beneficial relationship with all of our customers.

GarantiBank currently has almost 3,000 corporate customers, 25,000 SMEs and 300,000 retail clients. In the first nine months of the year, the bank granted

loans on the retail side (especially housing loans), corporate and SME sectors (both in investments and working capital). The overall loan volume increased by approximately 5 percent compared to the same period last year. In retail, housing loans grew by 22 percent on last year, while there was a 15 percent increase in the volume of loans to SMEs. GarantiBank’s strategy for 2014 is to focus on the sustainable development of the business: short- and longterm lending for retail, SME and corporate customers, with careful risk evaluation.

We always take a prudent approach, thereby securing a lower-than-marketaverage NPL ratio.

Consequently, GarantiBank has had one of the healthiest growth rates in the Romanian banking sector. Our aim is to keep these segments balanced, in order to secure a healthy overall portfolio.

How important is the fact that Turkiye Garanti Bankasi is your parent bank?

Turkiye Garanti Bankasi A.S. (TGB) is the most profitable and the second largest private bank in Turkey in terms of assets. Furthermore, Bloomberg ranked it this year among the 20 strongest banks in the world. In October 2013, Fitch Ratings reconfirmed Garan-

tiBank’s “BBB-“long-term rating, with a stable outlook. The rating reflects the high probability that GarantiBank Romania will continue to receive external support from the parent bank, and Fitch added that the Romanian subsidiary is of strategic importance to TGB. So GarantiBank benefits from the support, extensive know-how and financial health of the parent bank. This has supported our growth at a time when European banks are not in a position to offer capital to their Romania subsidiaries. Also, we are fortunate to be working with a specialized company that is part of our group, Garanti Technology in Turkey, which has launched some of the most innovative financial products recognized and awarded globally.

What are your plans and objectives going forward?

Our objective remains to grow in an intelligent and sustainable manner, focus on and improve the level of customer satisfaction, attract new customers and establish long-term partnerships. Our growth, as has been the case so far, depends on our customers and our relations with them. anda.sebesi@business-review.ro

www.business-review.eu Business Review | Dec 16 - 22, 2013 - Jan 20, 2014

EXCELLENCE IN BUSINESS / SPECIAL PROJECT 13

LLENCE IN ROMANIA Garanti Group: a business that has innovation in its DNA Garanti Group has established itself as one of the most dynamic and healthiest financial groups on the market. Its excellent results are based on its strong philosophy: to meet its customers’ needs and grow along with them. ∫ ANDA SEBESI Over the years the group has managed to post constant growth and high profitability despite the challenging economic conditions because of the financial crisis. So how has it managed to be successful despite the tough economic climate? “We like to think that we are doing our homework in due time and we always expect the unexpected. We have shown during both challenging and booming economic periods that we are prepared and always close to our customers,” says Ufuk Tandogan, CEO of Garanti Group Romania. He adds that the group is now differentiating on the local market as a dynamic company because it learned fast how to adapt to the changing world.

“We have thrived as a business because we have always looked ahead, constantly tried to come up with innovative products and services and always taken our time to understand the market and customers,” adds the representative of the financial group.

Since its entrance on the Romanian market, the lender has paid a lot of attention to its customers, constantly offering products and services adapted to their needs. And it seems that this is a recipe for success on a competitive market like the Romanian one. “Customers are at the core of our business; we do not exist without them and we are not successful if they are not. Our customers are our partners and each project is valuable to us, regardless of the segment (SME, corporate or retail) or industry, or whether it’s a loan (short or long term) or a deposit,” says Tandogan.

He emphasizes that the bank’s main objective is to create mutually beneficial and long-lasting relationships, built on trust and respect. And this, he adds, is not because the lender is pressured by a highly competitive market, but because this is the only

The bank, which has more than 70 branches locally, invested heavily in technology this year

way it knows how and wants to do business.

As a financial group, Garanti is a pioneer in several areas, such as internet banking, mobile solutions and smart ATMs. Yet it is not always easy to innovate on a market like the local one, in the face of different and difficult challenges. But Garanti knew how to capitalize on the potential of the Romanian market, given that in the past, Romanians were relatively reluctant to use alternative banking platforms. Things have changed in the past few years as consumers have started to be more open to adopting new technologies, as a result of today’s fast-paced society which pushes people to look for time-efficient solutions.

Making fast and secure online payments, transferring money, paying with a smartphone and even using a real-time internet loan application

platform – GarantiBank has made all these options available on the local market, introducing innovative products such as Garanti Online, iLoanU and SEQR. “We are always analyzing the market and its trends, but at the same time we are constantly aiming to launch new ‘firsts’ and be one step ahead when it comes to making available solutions that allow customers to move fast and give them greater comfort,” says the group CEO. “Innovation is part of our DNA and we will continue to build on it in the coming years, as a main differentiator in the market, focusing on innovative products, as well as high quality customer service.”

Human resources are a chief ingredient for the success of any type of business, and this has proven to be the case for Garanti Group too. “What we decide at the headquarters in terms of strategies and products or

services to be made available on the local market is important, as is customers’ experience in the branches. The day-to-day operations of a business depend on individual contributions. So the employees are important, no matter what their position is or where they are located nationwide. Each of us represents the company in the market and each of our performances counts for the success of Garanti Group,” says Tandogan.

Asked about the perspectives of the Romanian banking sector, the CEO says that the past few years have been very challenging, with the entire Romanian banking system making efforts in order to maintain performance level and, at the same time, to keep up with customers’ needs. “Definitely, this trend has not only continued in 2013, but it has intensified – what started in these last few years as a ‘cleaning’ process, in terms of portfolios, has already turned into rethinking the banking system, so that it better meets customers’ needs,” he says.

Tandogan thinks that the banking system should first concentrate on helping its existing customers to overcome this difficult period. Companies’ liquidity and solvability have been affected by the crisis, and those in difficulties need support in finding the proper solutions (restructuring, diversification, the resizing of their activity). Moreover, banks play an important role in selecting those companies with high potential, which means placing capital where the return is the highest, so those companies might take on the role of engines of the economy. “The biggest challenge this year is to find the right places to meet the customers and to provide them with the most suitable products and services, in today’s challenging market environment,” concludes the CEO. anda.sebesi@business-review.ro

www.business-review.eu Business Review | December 16 - 22, 2013 - January 20, 2014

14

Local companies remain active investors despite downturn With around EUR 9 billion invested domestically last year, big Romanian players have courageously continued to expand and create jobs, despite the uncertain economic picture. Some of the most significant breakthroughs registered by local companies were awarded by Business Review last week, during the first Romanian Investors Forum (RIF).

1

Photos: Silviu Pal

∫ OVIDIU POSIRCA

Convincing Romanian firms to go public

On a challenging market, which is attempting to leave behind the chills of the global financial crisis, local capital was put to work to shore up the economy. “Romania will grow durably – and it’s fundamental to understand this – through Romanian capital,” said Cristian Parvan, vice-president of the Association of Romanian Businesspeople (AOAR).

According to Parvan, total investments amounted to RON 77 billion (EUR 17 billion) in 2012, out of which RON 8 billion (EUR 1.8 billion) took the form of foreign direct investments and RON 30 billion (EUR 6.7 billion) public investments. The rest comprised investments made by local companies and entrepreneurs.

Marinel Burduja, executive director of Atrium Capital, said that Romania has enough “economic vitality” to create influential companies. Burduja will take the helm at the Romanian Bank for Credit and Investments, a newly formed local lender following the acquisition of ATE Bank by Romanian entrepreneur Dorinel Umbrarescu. The EUR 10.3 million deal was awarded by BR in the investment category.

“We will firstly support innovation.

We will focus on financing start-ups,” said Burduja, who added that a Romanian private lender has a different approach to country risk and understands better the features of local companies.

Some local companies have higher ambitions and are looking to tap the local stock exchange to raise development funds, which would also work as a cheap tool to gain publicity and marketing.

Ludwik Sobolewski, CEO of the Bucharest Stock Exchange (BSE), listed the extension of trading hours and the addition of new market makers as some of the first steps the exchange will take to make itself more attractive to entrepreneurs.

The local capital market marked a historic moment in November, following the initial public offering (IPO) in Romgaz, the state-owned gas producer.

Around EUR 391 million was raised from the IPO, which also included the listing of global depositary receipts (GDRs) in London.

Sobolewski commented that Romgaz “is a good sign that persists”, adding that the BSE has to work on setting up a market for the gas producer and others to come. The country still has some IPOs in the pipeline for 2014, involving energy companies that will be listed in Bucharest and London.

BR granted Romgaz a special award in the capital markets category for increasing the profile of Romanian companies among international investors.

“I am quite confident that in 2014 we will have undertakings coming from the private sector, not only privatizations,” said the CEO.

At present, Sobolewski is trying to bring Romanian entrepreneurs to the stock exchange, describing a situation in which a manager asked him what could convince him to go public.

“This is about having an alternative tool for getting capital,” commented the CEO. “Through the stock exchange, a company can get market valuation, which is useful in mergers & acquisitions (M&A), giving the possibility of a non-cash transaction.”

Making Romanian companies go public may be a tough nut to crack, but Sobolewski could build on the experience he gained in Poland. While at the helm of the Warsaw Stock Exchange, he set up a trading platform for small businesses called New Connect from scratch, which has since grown to around 450 firms.

“The stock exchange should help more companies go public, so as to have success stories involving private firms,” said the AOAR vice-president.

Financing options for 2014 The government is also trying to help Romanian SMEs that are struggling to gain access to finance.

Cezar Iliu, general manager of the SMEs and cooperation section within the Ministry of the Economy’s department for SMEs, business environment and tourism, said, “SMEs are usually financed by owners or through bank loans. The cost of bank finance is prohibitive.”

In a bid to lend a hand to smaller

2

3

4

5

6

7

8

9

1. Attendees during the Romanian Investors Forum 2. Ion Sturza, CEO, Fribourg Capital 3. Jonathan Youens, managing director, Lane and Creativ Invest Grup 4. Cristian Parvan, vicepresident, Association of Romanian Businesspeople (AOAR) 5. Ovidiu Chiorean, partner, investment banking, Crosspoint 6. Florin Pogonaru, president, AOAR 7. Marinel Burduja, executive director, Atrium Capital 8. Ludwik Sobolewski, CEO, Bucharest Stock Exchange 9. Cezar Iliu, general manager of the SMEs and cooperation section within the Ministry of the Economy’s department for SMEs, business environment and tourism companies, the authorities have approved the de minimis support scheme for SMEs, which will amount to RON 250 million (EUR 56 million) next year.

Each SME will be able to take out a grant of up to EUR 100,000.

www.business-review.ro Business Review | December 16 - 22, 2013 - January 20, 2014

15

1

1. Madalin Turcu (left), brand manager, Comfert; George Stan, founder and head of engineering, TeamNet; Florin Nemes, marketing manager, RCS&RDS; Aristotel Jude, advisor manager, Romgaz; Cristian Aciubotaritei, general manager, Insoft Development & Consulting; Ramona Popa, HR manager, Agricola Bacau; Mircea Tudor, president, MB Telecom In addition, Switzerland has granted CHF 20 million (EUR 16.3 million) that will be distributed to Romanian SMEs through CEC Bank. The Swiss grant can finance investments of up to CHF 100,000 (EUR 82,000) and will focus on manufacturing, healthcare and energy efficiency.

Building success stories in 2014 Florin Pogonaru, AOAR president, reckons that a series of virtuous circles will be born in the local economy in 2014, citing the stock exchange as a typical example. “2014 will be the year of continuing to forget the crisis, and the fear within the business community will further decrease,” he suggested.

Ovidiu Chiorean, partner, investment banking, at Crosspoint, added that Romania still has unutilized potential. “The anguish of the crisis has prevented certain investments from happening, but the interest (e.n. from investors) from at home and abroad makes me optimistic.”

Ion Sturza, CEO of investment fund Fribourg Capital, agreed that Romania needs to register some successful investment stories to attract investments, given the ongoing race for fresh capital across the region. “I am convinced Romania must rethink its economy through reindustrialization and by using its mineral resources,” said Sturza.

BR awards Romanian companies As part of its constant efforts to support the business community, BR honored

Romanian firms and entrepreneurs that had sought to expand their business and create jobs.

The magazine awarded companies in the innovation, human resources and investments/capital markets categories.

Romanian Insoft Development & Consulting, a provider and integrator of IT&C solutions, snapped up an award in the innovation category. CEO Cristian Aciubotaritei accepted the prize, noting that the company has entered its fifth year of activity.

MB Telecom, a system integrator that designs and installs hi-tech equipment, generally as part of largescale security projects, received an award for innovation for the first aircraft scanner in the world, the Roboscan 2M Aeria, which took the grand prize this year at the 41st International Exhibition of Inventions of Geneva.

Mircea Tudor, president of MB Telecom, said, “We are scanning locations for developing a second production capacity and we have reached Switzerland.”

“If we are a poor country and we want to exit the crisis we should stimulate the economy, not suffocate it.

Switzerland, which is so wealthy, is so far ahead of Romania,” said Tudor, alluding to the taxation framework in Switzerland.

TeamNet, a Romanian provider of IT services, received a prize in the innovation category for its initiative to build and operate unmanned air vehicles (UAVs) in Romania. The first mis-

sions that the Hirrus drones participated in involved data gathering for academic projects.

George Stan, founder and head of engineering at TeamNet, said that 98 percent of the drones’ components are made locally.

Agricola International, the Romanian meat producer, was granted an award in the human resources category. The company was recently ranked as the best Romanian employer by Aon Hewitt in the category of SMEs with fewer than 1,000 employees.

Ramona Popa, HR manager at Agricola Bacau, said, “Human resources are strategic. In a market with tight competition, and with local economic conditions which are not the greatest, people make the difference.

This has been reflected in performance indicators as Agricola International has doubled its poultry sales since 2009.”

Romanian DIY retailer Dedeman was also awarded in this category for employing 960 people after opening six new stores across the country. In addition, the retailer was awarded in the investment section after putting EUR 73 million into expanding its branch network this year.

Telecom operator RCS&RDS was acknowledged as one of the biggest investors locally for putting EUR 40 million into 3G and 4G licenses and investments in the data infrastructure for providing internet at speeds of up to 1000 Mbps.

“The service with the highest speed

RIF Awards Innovation Insoft Development & Consulting – IT&C MB Telecom – IT&C TeamNet – IT&C Human Resources Agricola International – Agriculture Dedeman – retail Investments Dedeman – retail RCS&RDS – telecom Dorinel Umbrarescu – banks Comfert – agriculture Special award Romgaz – capital markets in Romania and Europe is the service we launched, Fiberlink 1000, which we hope will help us maintain our leading position in the high-speed internet market in Romania and first place in the local television services market,” said Florin Nemes, marketing & PR coordinator at RCS & RDS. He added that the company has over 8,500 employees.

Romanian Comfert, a company active in the agriculture sector, was commemorated for the acquisition of bakery producer Pambac, along with Popas Trebes, another Romanian firm.

Madalin Turcu, brand manager at Comfert, said the acquisition allowed Pambac to continue its activity as a Romanian brand. ovidiu.posirca@business-review.ro

www.business-review.eu Business Review | December 16 - 22, 2013 - January 20, 2014

16

Predictability will buoy French investments How well the local workforce is adapted to the needs of the business environment, the latest fiscal changes announced by the authorities, how next year’s elections will affect the business environment, and how the local economy looks for 2014 from the perspective of French investors were among the main topics discussed during BR’s fifth French Investors Forum, organized last week.

1

2

Photos: Mihai Constantineanu

∫ SIMONA BAZAVAN French investments were on the rise in 2013 and companies from the Hexagon have a positive outlook for 2014, said participants at the event. With more and more French firms relocating from China to be closer to home, Romania should be able to attract some of these investors, said Philippe Garcia, director of the economic mission Ubifrance.

“Companies from logistics, transport, industry and food production can find in Romania what they were looking for when they left for China,” he added.

This is something that could be observed in 2013, but Garcia expects the phenomenon to continue throughout 2014.

France remains Romania’s fourth largest trading partner and the third largest investor in the country, with a EUR 7.2 million stock of FDI. In 2012, bilateral trade between the two countries amounted to EUR 6.2 billion, out of which Romanian exports to France represented EUR 3.2 billion.

France on the other hand exported more to Romania than it did to China or India, and as much as it did to Brazil, added Garcia.

French companies already have a strong presence in Romania, but this could increase even further over the coming years with the right conditions in place, said participants.

A word from the authorities Addressing participants’ concerns over fiscal stability and the latest tax changes announced by the authorities, Virgil Daniel Popescu, state secretary at the Ministry of the Economy, said that leaving aside “media exaggerations over the new taxes”, the government is firmly committed to increasing the tax base and lowering taxes.

When first arriving in Romania, many investors find the legal system convoluted and the tax system unstable, but this is only a first impression, thinks the official. “We have a 16 percent flat tax which hasn’t changed in six years, and the government has promised to cut social contributions by 5 percentage points from June 2014 (…). As for the tax on special constructions, this is something which exists elsewhere in Europe and Romania hasn’t had so far,” he added. In order to improve communication between investors and the authorities, the Ministry of the Economy, which is currently undergoing a restructuring process, will set up a dedicated department to act as an interface between investors and the authorities, he told participants.

2014 and beyond…

The future of French investments in Romania depends as much on global and regional economic developments as it does on the authorities’ capacity to ensure a stable and predictable business

environment and speed up investments, in infrastructure in particular, said panelists.

“I am generally optimistic, but I would also like to highlight several aspects to which Romania should pay attention,” said Philippe Gustin, the French ambassador to Bucharest. He stressed the need for the authorities to foster more stability, predictability and coherence. “Investors hate uncertainty.

The rules of the game can’t be changed overnight, especially when we are talking about large-scale investments,” he urged.

The ambassador also expressed concerns about the way next year’s elections could affect the economy. “I hope this will not act as a brake, but the contrary,” he added.

Antoine Aoun, head of purchasing at Renault Dacia Romania, said that while it was hard to make predictions for 2014, it is vital the authorities take the necessary measures to ensure that competitiveness is maintained. The company performed well in 2013 despite the fact that new car sales dropped this year in Romania, while imports of secondhand cars were on the rise. Moreover, Aoun expects no major changes in 2014 in terms of new car sales. Dacia produces some 1,400 cars per day at its Mioveni plant, but one month’s production is enough to cover local demand.

“What would we do if we didn’t export?” he said.

3

4

1. Romania’s workforce remains the country’s greatest resource, agreeed the panelists 2. Adriana Record, executive director, CCIFER 3. Philippe Gustin, the French ambassador to Bucharest 4. Virgil Daniel Popescu, state secretary, Ministry of Economy

www.business-review.ro Business Review | December 16 - 22, 2013 - January 20, 2014

1

2

17 3

4

1. Philippe Garcia, director, Ubifrance 2. Manuela Furdui, managing partner, Finexpert 3. Antoine Aoun, head of purchasing Renault Dacia, Renault Dacia Romania 4. Dana Gruia-Dufaut, lawyer, Gruia Dufaut Law Office

Human capital above all Romania’s workforce remains the country’s greatest resource, stressed Gustin.

The announcement earlier this year of several relocations to Romania proves this, added Adriana Record, executive director of the French Chamber of Commerce, Industry and Agriculture in Romania (CCIFER). For example, French tire manufacturer Michelin announced in March that all its marketing operations in Greece would be coordinated from Romania from 2014. The manufacturer operates three factories locally.

Two months later Societe Generale said it was planned to cut costs by EUR 900 million by 2015, by cutting jobs in France and relocating some activities to Romania, Morocco and India.

Overall, the balance between the quality and the cost of the local workforce in Romania remains one of the most attractive in the region, despite the fact that salaries have gone up in recent years, confirmed Manuela Furdui, managing partner at Finexpert.

She added that other factors that are attractive to French companies looking to invest in Romania are the 16 percent flat tax and the state aid schemes, two of which will be prolonged until the end of June 2014.

While Romania’s workforce is a plus, not all is good, said participants. There is a growing need for trained people in technical fields other than IT, which the local education system fails to meet. Should the state not take into

consideration the actual needs of the labor market and invest more in education, some trades could simply disappear, argued participants.

The perception gap A November 2013 opinion survey carried out by the CCIFER among 150 local companies found that there is a generally positive economic outlook fueled mainly by good performances at the companies’ level. This was the most positive result since 2011, said Record.

French firms doing business in Romania are aware of the opportunities presented by the local business environment, but this perception is not always shared back in France. “It is true that Romania suffers from an

image problem. Those who are already here want to stay,” stressed Dana Gruia-Dufaut, lawyer at Gruia Dufaut Law Office and the event’s moderator.

The CCIFER and the Ubifrance economic mission hope that some of this will be changed by the regional forum to be held this February in Bucharest, which will be attended by around 100 French firms. “There is no better ambassador for Romania than a company coming here, discovering the gap between the perception they had before coming and the reality, and going back to spread the word,” said Garcia. simona.bazavan@business-review.ro

www.business-review.eu Business Review | December 16 - 22, 2013 - January 20, 2014

18 LINKS TELECOM

Teamnet rebrands, announces regional expansion The Teamnet group has announced a new brand identity to align with the company’s plans to expand its footprint to 12 new markets in Central and Eastern Europe, the Middle East and North Africa over the next five years. By 2016, the technology company’s turnover is projected to reach EUR 100 million. Currently, Teamnet has 600 employees and aims to reach 750 next year. ∫ OTILIA HARAGA The list of countries where Teamnet plans to open up offices includes Poland, Italy and Russia. At the moment, it has four local offices in Romania – in Bucharest, Iasi, Galati and Bistrita – and four international offices in Belgium, the Republic of Moldova, Serbia and Turkey.

The company is rolling out projects in 10 countries in the region, but it plans to open offices in 12 new countries, which will see over 40 percent of its turnover being generated by operations outside the country by 2018, CEO Bogdan Padiu announced.

Its expansion plans will be accompanied by team growth. At the moment, the company has 600 employees but plans to have 750 on its roster by 2014.

The recruits will be distributed among all the group’s companies. The group is made up of four companies: IT&C integrator Teamnet, Teamnet Dedalus focused on the medical sector, system integrator Teamnet Engineering and cloud service provider Ymens.

Annually, 10 percent of Teamnet’s turnover is invested into R&D projects.

At the moment, the firm is involved in 12 such projects including HeERO 2 (Harmonised eCall European Pilot), Smartcem (Smart Connected Electro Mobility), MobilSage (Situated Adaptive Guidance for the Mobile Elderly), the

Bogdan Padiu, CEO of Teamnet

National Integrated Visa System and E+ (an energy efficiency project). The company aims to expand regionally by replicating successful projects it has implemented in Romania in other countries, by signing local partnerships on those markets to fuel its expansion.

In 2012, Teamnet posted a turnover of EUR 53 million but plans to raise this to EUR 100 million by 2016.

At the moment, 20 percent of the duction of these units will grow by at company turnover comes from the pri- least 30 percent annually,” said the CEO. vate sector. Teamnet has signed exter- He added that Romania has very good nal projects worth EUR 6 million this aeronautics engineers.

The UAVs can be sold or rented out. year.

In five years, over 30 percent of the “Such a device costs tens of thousands of company’s turnover will come from the euro. If we rent them, the price is per private sector. The domains of interest flight hour,” said Padiu.

“The UAVs can be used in the cadastre to Teamnet are agriculture, the environment, e-government, transportation, process, in agriculture to monitor land education, healthcare, energy and plots and their need for irrigation, in the environmental sector for the cartogratransportation.

This year, it has signed external proj- phy of forests and plant and animal ects worth EUR 6 million in the public species, as well as in emergency situasector in states such as Serbia, the Re- tions. The beneficiaries of the projects public of Moldova and Belgium, Padiu implemented so far were private comtold BR. “These are projects that we panies, but we have also submitted ofhave in Romania and are replicating in fers to public institutions and I hope other countries. For instance, in Serbia next year we will have an answer,” said we have a project in the field of emer- Padiu. He added that Teamnet is targetgency situations. We also have a con- ing the civil sector with its UAVs and “in tract in the management of human this sector, we are leaders. There are not resources. We have research contracts, very many companies on this market,” such as MobilSage and HeERO 2, which he said.

The firm also announced it is preparwill be implemented in Brussels,” said ing a new brand identity, on which it Padiu.

In mid-2013, the firm announced it started working with Brandtailors last had designed, built and tested several year and which will be completed next unmanned aerial vehicles (UAV) in Ro- year. The rebranding strategy will be mania. The aircrafts have three hours of implemented over the next five years autonomy and can reach speeds of following a total investment of EUR 1 more than 110 kilometers per hour at al- million.

Until 2011, the firm was part of the titudes of over 2,500 meters. “We have been working on this project for nearly Asesoft group, which belongs to busithree years and we have roughly 40 nessman Sebastian Ghita. specialists working on it. Currently, we have 20 UAVs but we estimate the pro- otilia.haraga@business-review.ro

REGULATORY

ANCOM slashes mobile and fixed termination rates

R

omanian telecom watchdog ANCOM has announced a new cut in mobile and fixed termination rates, after the end of the last round of public debates. Fixed termination rates will be cut from 0.67 eurocents/minute to 0.14 eurocents/minute. Mobile termination rates will fall from 3.07 eurocents/minute to 0.96 eurocents/minute.

The new rates will come into force after compulsory European consultations. ANCOM will notify the European Commission (EC) and the national regulatory authorities in the other EU member states and await comment on the issue within a month.

Termination rates are charged only for off-net calls, representing the price charged by an operator to take calls

within its network. The sum can be found in the monthly bills paid by users.

The cut is meant to stimulate competition. According to ANCOM, although the smartphone penetration rate in Romania is comparable to that in France or Germany, over 70 percent of local users limit their national mobile calls because of cost concerns. On-net calls represent 90 percent of mobile calls. ”Cost barriers between networks due to high termination rates discourage communication between users of different networks. The new termination rates proposed by ANCOM reflect realistically the resources needed to provide the services and will ensure healthy competition to the benefit of

the final user,” explained Catalin Marinescu, president of ANCOM. Speaking at the Comunic@tii Mobile Gala, he said, “The mobile telephony and internet market in Romania continued to post growth in the first half of 2013, which proves that Romanian users’ interest in mobility remains constant.

The average local mobile internet user consumes 260 MB monthly, up on recent years. Nearly 70 percent of high-speed mobile internet connections are supplied based on monthly payment: postpay offers or internet access extra-options.”

At June 30, 2013, there were 8.2 million active mobile broadband internet connections in Romania, 11 percent up on the end of 2012. The mobile internet penetration rate reached about 56 per-

cent and mobile broadband penetration rate 41 percent. In Romania there are currently 22.6 million active mobile telephony users, broadly unchanged since 22.7 million at June 30, 2012.

Voice traffic in mobile networks grew by 2.5 percent on H1 2012, exceeding the 31 billion minute mark. Of these, approximately 27 billion were on-net minutes, over 3 billion were off-net minutes to other mobile networks, 1 billion were calls to fixed networks and 560 million minutes international calls.

In the first half of this year, users sent approximately 8.1 billion SMS, 22 percent up on the first half of 2012. Of these, 94.5 percent were on-net messages. ∫ Otilia Haraga

www.business-review.ro Business Review | December 16 - 22, 2013 - January 20, 2014

CITY 19

Chestnuts roasting on an open fire Where to find festive fare If you’re looking for the perfect place for fabulous festive food, be it for your own Christmas dinner table or for delicious gifts to fill the hearts and stomachs of your nearest and dearest, BR is on hand to help you stock your Christmas kitchen.

capital’s oenophiles. There’s a great range of choices and prices, plus regular wine-tastings where even the beginner is made to feel comfortable. The eponymous Fox (the genial Richard) is often on hand to dispense advice, and what he doesn’t know about wine can be written on a cork. 87 Dacia Boulevard. foxwines.ro

∫ OANA VASILIU Food Bacania Veche This grocery store aims to offer food with a story. The shop sells traditional Romanian meat, dairy products, wines, all sorts of preserves, in-season fruit and vegetables, unconventional kitchen implements, baked goods, as well as international products – all under the motto “no preservatives, no colorings or other chemical additives”.

49 Barbu Vacarescu Blvd.

Camera din fata Among old family pictures, thousands of pots with flavored tea (150 varieties to be precise), cups of coffee and, of course, coffee (over 25 types), visitors are transported back in time, as Camera din fata is inspired by grandparents’ houses. Tea lovers can choose their brew from among red, white, green, black, yellow, Japanese, Chinese and Indian blends, smoked, fresh and mixed teas and even unconventional combinations, while coffee is specially bought from one of the Romanian masters of the beverage, the distributor of the Royal House of Romania, Mihail Florescu.

There is also a selection of related gifts: mugs, cups, tea services, tea pots, espresso machines and even homemade goodies such as jams and fruit syrup. 22 Mendeleev Street (Romana Square), 23 Temisana Street. www.cameradinfata.ro Boutique Comtesse du Barry Upmarket delicatessen that brings a little French gastronomic savoir faire to Bucharest. All manner of edible and drinkable treats await, including smoked salmon, caviar and posh chocolates, not to mention a range of wines. If you have foodie friends and money to spend, you could do all your Christmas shopping here. Another outlet can be found in Baneasa Shopping City.

2-4 Episcopiei Street. Baneasa Shopping City 1st floor, 3 Mircea Eliade Blvd. www.lemanoir.ro Delicateria Traiteur Serves up gastronomic goodies from a delectable range of chocolates to sauces, condiments and oils, not forgetting soft and harder drinks, plus accessories such as coffee makers. For those aiming to be more virtuous over the traditional season of indulgence, there is also a selection of organic products. Orders are

Lizar Tobacco & Liquor Store Wines, liquors, cigars, cigarettes, pipes, narghile tobacco and other accessories can be the perfect present for the smoker or drinker in your life. And for Zippo collectors, the stores sell the entire range of the famous American windproof lighters.

34 Pipera Tunari Road and 3-5 Radu Beller, www.lizar.ro

Season of indulgence: chocolates make a failsafe Christmas gift

taken online with delivery promised within 24 to 48 hours. 11-13 Oltetului Street. www.delicateria.com Leonidas The famous Belgian praline – a chocolate layer covering a soft fondant center – is best known in Bucharest thanks to Leonidas, a world-renowned chocolate maker, which sells over 100 different kinds of Belgian chocolate through 1,400 outlets around the world. To mark the winter celebration, over 20 different Christmas chocolate figures can be beautifully wrapped and put under the Christmas tree, for those with a sweet tooth.

On top of that, tea lovers can purchase Tea Forte special collections, such as Winter Spice Teas, the seasonal recommendation.

35 Calea Dorobantilor. www.pralinebelgiene.ro Wine Arte & Vino While its Romanian language-only website makes Art & Vino a little less foreigner friendly, this is another business run by proper wine people. The bottles stocked come from Romania, Eastern Europe, the traditional wine-making nations of Western Europe and the New World. 2 Marasesti Blvd. (Carol Parc Residence). www.artevino.ro Corks Cozy Bar Wine lovers can select their tipple from

a few hundred labels at this Old Center spot. The bar offers a menu of over 300 bottles, all of which can also be served by the glass. The selection includes both new and vintage wines. For wine collectors the bar sells anniversary and medal-winning wines, star buys, and wines from both the New and the Old World. 1 Bacani Street, Old City Center, entrance from Lipscani Street. www.corks.ro Crama Murfatlar Crama Murfatlar (Murfatlar Winery) stores can be found in almost all neighborhoods in Bucharest as well as in a large number of shopping centers. If choosing from the full range of the producer’s varieties leaves you stumped, tasting is free and the vendors are there to offer advice. 35 stores in Bucharest Ethic Wine With an ethos of bringing quality wines to local consumers at sensible prices, Ethic has some bargain bottles (it also sells spirits and olive oil). The owners boast of having “the largest selection of Romanian wines in Bucharest”, but the rest of Europe and the New World are also covered. 55 Banu Antonache, Piata Floreasca. www.ethicwine.ro Fox Wines Since opening just over a year ago, this place has become a firm favorite of the

Van Gogh wine shop The Netherlands might not be the first country you’d associate with fine wines, but the people behind Van Gogh café know their onions when it comes to quality food and drink. The expat hangout du jour sells a selection of bottles, which can be tasted on site along with some cheese, or delivered to your home.

9 Smardan Street. www.vangogh.ro Vinexpert Started by a group of oenophiles, the Vinexpert network stocks a range of top European wines and spirits, along with other high-end goods such as teas, coffees, chocolates and Cuban cigars.

If you’re stuck for inspiration, the website has a list of Christmas gift ideas.

The chain also has mall outlets. 24 Octavian Goga Street. www.evinoteca.ro The Winery Outlet The Winery, part of the British company Halewood, has special deals on bubbly – ideal with the party season coming up – and other products. You can order online, and there’s free delivery for orders worth over RON 200. The store stocks the entire range of wines produced by Romanian Halewood and another 179 imported wines – from Uruguayan Pisano and South African Simonsig to famous French producers like Hugel & Fils, Lupé Cholet and Gerard Bertrand. In addition to wines, the store also sells beer and liquors – for some Christmas flavor, you can choose ginger beer or cider. Online orders at www.winery-outlet.com oana.vasiliu@business-review.ro

www.business-review.eu Business Review | December 16 - 22, 2013 - January 20, 2014

20 CITY TRAVEL

‘Tis the season to go truffle hunting

F

tries. Our association is the only one offering truffle hunting as a tourist product,” she added.

Prices start at EUR 100 per person, depending on the group size and the chosen activities. Alongside an introduction to the foodstuff and the actual hunt, tourists receive a cooking class with an experienced chef and a wine tasting session. Groups are generally of up to 15, maximum 20 people. As for accommodation, there are several three- and four-star rural guesthouses in the area.

And if you find yourself in Buzau county, there are many more things to see and experience. One highlight is the famous Dealu Mare area with its long tradition in winemaking. Several wineries can be visited, and offer tourists wine tasting and cookery classes. The county is also famous for its mud volcanoes. Other options are visiting the Bellu Manor, the archaeological sites of Naeni and the salt water springs in Sarata Monteoru. The more adventurous can go rafting, mountain biking or opt for off-road tours. ∫ Simona Bazavan

The 12 double rooms and three igloos of the Balea Lake Ice Hotel are awaiting guests from December 25.

Most of the ice rooms were booked by a group of 30 British tourists, who plan to spend New Year’s Eve at an altitude of over 2,000 meters, in central Romania, says Vasilica Popa, representative of hotel owner Klingeis Consulting.

Photo: ©Chris Burton

or foodies looking for an outdoor culinary adventure this winter, going on a truffle hunt may be just the ticket.

In Romania, the prized fungus can be found in broad leveled forests in the Sub-Carpathian mountains of Buzau and in Transylvania. “The best period to go truffle hunting is October to January, as the autumn and winter truffles are more aromatic, but in Buzau there are also summer truffles that can be found from June,” Juranda Kirschner, founder and president of the Monteoru Renaissance tourism association in Buzau county, told BR. But one cannot just go truffle hunting on a whim. Specially trained dogs are used to find the fungus, which grows in the soil at a depth of about 5 to 50 cm. Also, the temperature needs to be higher than minus 10 degrees Celsius and below 30 degrees Celsius, otherwise the dogs cannot pick up the scent.

“There are only a couple of truffle hunters in the Buzau area. Most of them export the truffles to other coun-

Have an ice time A cool holiday experience at Balea Lake

Ice to see you: frosty decor awaits visitors to this unique venue

∫ OANA VASILIU The owners of the hotel and igloo complex started to put up the buildings in early December. With a fairly short lifetime of only three to four months, the Ice Hotel at Balea Lake has proved quite a tourist attraction in recent years, with thousands of visitors from all over the world venturing here at least for a snapshot in the icy rooms.

Besides the accommodation, there is the Ice Bar, Ice Restaurant and Ice Church. The Ice Bar is the heart of the hotel, and warms the most frozen blood with cocktail specialties not served in ordinary glasses but in receptacles carved out of ice. The bar is open daily from 9.00-21.00. The Ice Menu consists of an unforgettable culinary journey: sitting at a table made from a block of ice you will partake of a special menu – partially served on ice plates. The food is carefully prepared at the Balea Lake Chalet and delivered to the Ice Restaurant.

The Ice Church, open to believers of every faith, is probably the most extraordinary church in Romania. The first step in building the church every

year is the sanctifying of the water of Balea Lake. The ceremony is led by representatives of the Orthodox, Romano-Catholic and Evangelical Churches – the region’s major denominations. The unique Ice Church is about 4 meters high and its architecture is based on an old church located in Malancrav, Sibiu County.

The hotel was the brainchild of Arnold Gunter Klingeis. Travelers interested in sampling the ice experience will be able to attend events organized at the location and enjoy frosty eating and drinking.

The first ice hotel in Romania and indeed the region was constructed in winter 2005/06. As the first building of its kind in Eastern Europe, success came immediately, with approximately 3,000 local and foreign tourists visiting the site, which was then at the top of the Carpathians. Located 60 kilometers from the city of Sibiu (272 km northwest of Bucharest), the Balea Lake tourist area is accessible in winter only by cable car, as the national road DN7, the Transfagarasan, is closed at this time of year. oana.vasiliu@business-review.ro

www.business-review.eu Business Review | December 16 - 22, 2013 - January 20, 2014

In with the new Top party places to see in 2014

CITY 21 FILM REVIEW

Only God Forgives

In Romania, New Year’s Eve is one of the biggest party nights of the year and an opportunity for businesspeople to put the stresses of 2013 behind them and look forward hopefully. For our party-loving readers, who want to turn it up a notch, BR presents its selection of the best places to ring in 2014 in Bucharest.

Photo:@Wild Bunch

∫ OANA VASILIU Caru’ cu Bere Cost: RON 490/person. Groups of more than 15 are entitled to a 10 percent discount.

Address: 5 Stavropoleos St. A refined show with music by the Winer Valzer orchestra, which can be enjoyed with the Royal Family’s Rhein sparkling wine and royal food cooked in the chefs’ own style. Fine cheeses, amuse-bouches with salmon, beef fillet and the like are some of the highlights.

The bar menu has been called To Your Heart’s Desire, so you can imagine the indulgence.

Jubile Cost: RON 299/person.

Address: 3 Amiral Constantin Balescu St.

With Anna Lesko as the main guest and some traditional Romanian entertainment, plus an open bar, New Year’s Eve at Jubile looks set to be a lot of fun.

The organizers also promise a special surprise show.

The Tube Cost: basic – standing with open bar all night long: RON 200/person premium – lounge table with sparkling wine, canapé selection and open bar all night long: RON 450/person luxury – lounge table, Champagne Pommerry Brut, canapé selection and open

Scott free: Kristin Scott Thomas plays wildly against type in this violent thriller

∫ DEBBIE STOWE bar all night long: RON 590/person Address: 30-34 Lipscani Street The newest hotspot in the Old City Center that is styled on the famous London underground system is preparing a great party featuring Republika, one of the best live bands in Romania.

Director: Nicolas Winding Refn Starring: Ryan Gosling, Kristin Scott Thomas, Vithaya Pansringarm On at: Cinema City Cotroceni, Cinema City Sun Plaza, Movieplex

You’ve got to hand it to Nicolas Winding Refn – the Danish director doesn’t flinch from depicting violence. Most Sala Polivalenta – The Countdown 2014 of the characters in his latest gore-fest Cost: RON 80/person or RON 428/person can’t hand anything to him though – for VIP package. they’ve had their arms chopped off by a samurai sword-wielding Bangkok Address: 10 Calea Piscului. police chief. Which is one way of keeping re-offending rates down.

When he’s not separating wrongdoers and their limbs, the dismembering cop enjoys a spot of karaoke.

Chang (Vithaya Pansringarm), whose no-nonsense approach to law enforcement would probably find favor among sections of the Daily Mail readership, is not actually the least likeable character. That toughly contended title goes to American drug trafficker Billy, whose idea of a fun night out is trashing a brothel and murdering a 14-year-old prostitute.

This faux pas starts a chain of Christopher Lawrence, DJ Wanda, vengeance that sucks in Billy’s terrifySnatt&Vix and DJ Miki Love will be on ing mafia widow mom Crystal (Kristin the decks spinning dance music tracks Scott Thomas) and his decent so you can party from 22.00 until the younger brother, Julian (Ryan sun comes up. The crowd will be in the Gosling). That’s decent in relative capable hands of the person named Best terms, in that he doesn’t go around American DJ at the IDMAs, widely con- torturing people, disapproves of sidered one of the world’s top DJs and killing 14-year-olds and is hot. He’s producers. Dubbed “a superstar DJ” by still a drug dealer and murderer, just the US’s URB Magazine and “one of the not a really bad one.

Julian sees a prostitute, Mai most popular DJs on the global circuit”

by DJ Magazine, Lawrence is among the (Rhatha Phongam), whom he doesn’t most respected names in dance music slaughter (so she fares quite well, considering), and asks her to pretend to today. be his girlfriend for dinner with his unhinged mother. We don’t know oana.vasiliu@business-review.ro

why – we don’t know why he does anything because he only has 17 lines in the entire movie, so his motivation is a mystery. During the meal, Crystal hurls foul-mouthed abuse at Julian and Mai and compares the size of her sons’ penises. In all his Meeting the Parents, Ben Stiller really had it easy next to this.

So, on we go, with some graphic torture, hints of incest, a bit of karaoke, a shoot-out, some limbs being lopped off, more torture and murder, you get the idea. Many of the scenes are bathed in neon light, with a trippy electronic soundtrack, giving the movie a surreal quality in keeping with the slow, Far Eastern Western-inspired plot and the characters, none of whom resemble real people, but a hotchpotch of ciphers and symbols.

Although deeply strange and often unwatchable in its ultra-violence – which makes Kill Bill look like Disney – something about Only God Forgives exerts a draw, and, if not gripping, it’s certainly absorbing. Part of this is the stylishness conferred by Refn’s meticulous direction. Thought and craft have gone into every shot, and there’s a gamut of references, from blood-onhands Macbeth symbolism to long tracking shots of corridors that nod to The Shining.

Gosling and Pansringarm’s taciturn characters don’t let them do too much – the former looks moodily handsome and the latter exudes calm menace – but Scott Thomas really goes to town as a bleach blonde Cruella de Vil with oedipal issues.

Seeing the cut-glass Anglo-French star playing so far against type is just one of the curiosities of this bizarre, brutal but never boring film. debbie.stowe@business-review.ro

www.business-review.eu Business Review | December 16 - 22, 2013 - January 20, 2014

22 CITY

Hot tickets - the must-see cultural events in 2014 Have you decided what’s worth penciling in your 2014 diary yet? BR shares the lowdown on the concerts, dance and shows not to be missed. ∫ OANA VASILIU Saint Petersburg Ballet on Ice – Swan Lake January 18, Sala Palatului

genre, or those keen to sample it, the LEDApple concert is the place to be.

In what is probably a premiere in Romania, a new category of tickets is available for this concert, for parents accompanying their underage children.

Al Bano May 7, Sala Palatului Popular Italian singer Al Bano will take to the stage in Romania accompanied by the Alexander Symphony Orchestra, which has established a reputation for thematic and inter-arts pieces that feature a mix of classical and contemporary music.

Deep Purple February 20, Sala Palatului

and bad will be interpreted through dance steps.

Cyndi Lauper June 12, Sala Palatului

Hiromi March 25, Sala Radio Since 1995 the Saint Petersburg Ballet on Ice has been performing on the stages of various opera theaters. The company is set to return to Romania, to present one of the most famous ballets, Tchaikovsky’s Swan Lake.

Dulce Pontes February 9, Sala Palatului Dulce Pontes is usually defined as a world music artist, whose songs contributed to the 1990s revival of the Portuguese urban folk genre called fado. Considered the successor of Amalia Rodrigues, Dulce Pontes has collaborated with José Carreras, Cesária Évora and Andrea Bocelli, but her most notable alliance was probably with the Italian composer Ennio Morricone: in 2003 their Focus album earned a Golden Disk within just 20 days of its launch.

LEDApple February 15, Turbohalle For fans of K-pop, the Korean music

Legendary British rock band Deep Purple will come back to Romania next year, bringing a show likely to feature their best loved hits. The group was formed in 1968, and is considered to have pioneered the heavy metal genre, along with Led Zeppelin and Black Sabbath.

Deep Purple were listed in the 1975 Guinness Book of World Records as “the globe’s loudest band” for a 1972 concert at London’s Rainbow Theatre, and have sold over 100 million albums worldwide, including 17.5 million in the US. Lord of Dance March 14, Sala Palatului The Irish troupe will be accompanied by their iconic dancer and choreographer Michael Flatley, the creator of the phenomenon, in a brand new show with fantasy characters, where good

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

Pianist and composer Hiromi Uehara, whose passionate and incendiary keyboard work has been a shining light on the jazz landscape since her 2003 debut, believes that the voice that never speaks can sometimes be the most powerful of all. Her newest release, a nine-song trio recording simply titled Voice, expresses a range of human emotions without the aid of a single lyric. A Bucharest audience will be introduced to it this spring.

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

80s fans just want to have fun, and they will certainly be able to at Cyndi Lauper’s She’s So Unusual: 30th Anniversary Tour. The 61-year-old star will entertain her Romanian fans with hits such as Girls Just Want to Have Fun, Time After Time, She Bop, All Through the Night, and Money Changes Everything. Lauper is featured in the Rock and Roll Hall of Fame Museum’s Women Who Rock exhibit, which illustrates the important roles that women have played in rock and roll history. oana.vasiliu@business-review.ro

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