Interview: Teodor Cimpoesu, managing director of Kaspersky Lab Romania
and Bulgaria, says nearly half of local internet users are exposed to online attacks due to their failure to update their programs »page 11
ROMANIA’S PREMIERE BUSINESS WEEKLY
November 28 - December 4, 2011 / VOLUME 16, NUMBER 42
CALL CENTERS TELECOM FIRMS HAVE A LARGE POOL OF WELL ROUNDED, SKILLED APPLICANTS TO DRAW ON WHEN STAFFING THE CALL CENTERS THEY RUN LOCALLY »PAGE 10
HOLDING THE SHIP STEADY
MONEY
MONEY
FOCUS
Liberal banking
Warsaw packed?
Banks are tailoring some of their products to members of the liberal professions, a sign of a maturing market » pages 8
The managers of the Property Fund are looking into a second listing for the fund on the Warsaw Stock Exchange » page 9
EU-level competition UTTIS, a manufacturer of industrial heating equipment, plans to expand on the Russian market » page 12
PLUS Review: Alexandru Tomescu’s DVD 24/24 » page 13 Will the tail of Puss in Boots give our film critic paws for thought? » page 10
Photo: Laurentiu Obae
President Traian Basescu is confident Romania will be able to weather the financial storm and reach port safely, while warning Austrian banks to play fair and not leave the local economy to walk the plank »page 4
www.business-review.ro Business Review | November 28 - December 4, 2011
NEWS 3
BUSINESS AGENDA
NEWS in brief
November 28 10:45 PROFI store chain will organize an event to market the end of a CSR initiative and award prizes at School no 113 in Bucharest. By invitation only.
INDUSTRY
POWER
Ruukki increases turnover by 70 percent in Q3
State could subsidize residential wind installments
Ruukki Romania, a supplier of metal solutions that is part of the Finnish Rautaruukki Group, has registered a 70 percent increase in turnover in Q3, exceeding the figures posted in the real estate boom period. Exports of roofing systems and metal tiles rose by 40 percent in the first nine months of 2011, and the special steel division also fared well, achieving a local market share of 30 percent. “Rautaruukki chose Romania as the main production hub of Ruukki Construction. The selection took into account the logistical possibility of servicing countries in the region, but also the local market. We have delivered more than half of the production on the Romanian market,” said Marian Pirvu, the firm’s business manager for CEE. Pirvu added that the roofing and component segments have the largest share in the turnover, along with exports and special steels. The greenfield investment made by Ruukki in Romania totaled EUR 35 million.
The Environment and Forestry Ministry is looking into the possibility of subsidizing individual residential wind installment through a government scheme, according to the minister, Laszlo Barely, quoted by Agerpres. The assistance scheme could be similar to the Green House program that promotes the usage of clean energy sources like solar panels and water pumps. Borbely added that around 100 companies that have invested in the renewable energy sector have benefited from subsidies in the last year. The minister added that the subsidy limit is EUR 7 million and 50 percent of the investment. “Romania is currently producing and delivering to consumers about 7 percent green energy and we have to reach 24 percent by 2020,” he said.
11:00 Lotus will organize an event to mark the launch of a new model at its showroom in Otopeni. By invitation only. 18:00 Business Review organizes the Foreign Investors’ Forum at Howard Johnson Grand Plaza Hotel. By invitation only. Details at www.business-review.ro/events/ November 29 - 30 Bucharest Business Days, an event that will debate the future economic outlook of Romania, will be organized at Willbrook Business & Convention Center. Specialists in finance, investment funds and entrepreneurs will attend. By invitation only. November 29 10:00 Enel organizes an event to mark the launch of its Telecontrol Operative Center at its headquarters in Bucharest. By invitation only. 10:00 Imopedia organizes the first edition of "Real Estate Club" at Capital Plaza Hotel. Catalin Scipcaru, president of Century 21 Romania, and Andrew Prelea, CEO South Pacific Group, will attend. By invitation only. 19:30 The Internetics Gala 2011 that will award prizes to the performers of the online industry will be organized at Bucharest National Opera. By invitation only. November 30 13:00 The European Commission Representation in Romania will organize a press conference to mark the launch of the Orizont 2020 program at the European Union House. By invitation only. December 7 CEO Clubs Romania holds its official launch in Romania with the "Leadership in High Stakes" conference where Harvard Medical School professor Dr. Srini Pillay will be one of the guest speakers. By invitation only. December 9 Rotaract Sparks organizes a one-day conference on social entrepreneurship. The event takes place at the Central University Library in Bucharest.
Flextronics injects USD 3.6 million into Timisoara plant Flextronics, the producer of electronic components, will hire 350 people at its Timisoara production unit, which has expanded by an additional 1,500 sqm in order to manufacture medical components. The company spent USD 3.6 million to enlarge the scope of its production at the plant. In Romania, Flextronics has 2,600 employees. In the fiscal year 2010 (April 2010-March 2011), the firm posted a turnover of USD 500-600 million, estimated Radenko Prnja, general manager of Flextronics operations in Timisoara. In Romania, the company manufactures components for the medical, auto, industrial, telecom and IT sectors.
BCR lends TMK-Artrom EUR 20 million TMK-Artrom, part of the European division of oil and gas steel pipe suppliers TMK, has signed a five-year EUR 20 million loan agreement with Banca Comerciala Romana, a member of Erste Group Bank AG. The loan is secured with a corporate guarantee issued by mother company OAO TMK and is aimed at improving the current debt structure of TMKArtrom in line with the strategic restructuring of its credit portfolio. BCR has also increased the existing facilities available to TMK-Artrom: the overdraft facility from EUR 18.4 million to EUR 20 million, with a three-year tenor, and the discounting line for promissory notes from RON 5 million to RON 10 million, with a one-year tenor. In addition to the above, BCR provided a new treasury line of EUR 3 million, with a three-year tenor, for the purposes of interest rate and FX risk hedging.TMK is a global manufacturer and supplier of steel pipes for the oil and gas industry, operating 24 production sites in the United States, Russia, Romania and Kazakhstan.
Romania's right to trade carbon credits could be restored in March Romania has taken significant steps towards solving the irregularities in its greenhouse gas emissions inventory, and the trading of carbon certificates could be restored in March 2012, according to Laszlo Borbely, the minister of Environment and Forestry. Borbely added that a compensation system is currently under review at EU level, which grants some gains from the AAUs that would normally expire in 2012. Romania was deemed not in compliance with the 1997 Kyoto Protocol in an August 27 decision by the Enforcement Branch of the United Nations Framework Convention on Climate Change in Bonn. This led to the suspension of Romania's right to trade its surplus carbon emissions until a new registry for emissions reporting is put in place.
Rompetrol Group begins drilling works in Satu Mare Upstream, a division of the Rompetrol Group, has begun drilling operations for two exploration wells in the Satu Mare perimeter, covering 3,000 sqm. Around USD 1.2 million has been spent on geological and geophysical analysis of the perimeter to date, but the total investment is expected to reach USD 5 million. The first exploration well, which will be drilled in the Madaras area to a 1,800 meter depth, will evaluate the oil deposits discovered here in the 1970s, as well as new potential accumulations. The Moftinu well will evaluate the potential of gas and oil deposits in the area. Works in the region started in 2004, when Rompetrol bought concessions in Zegujani and Satu Mare for exploration and exploitation. The exploration operations will be managed and monitored by a joint team of Rompetrol and Winstar Romania, subsidiary of Winter Resources Canada.
Petrom takes out EUR 930 million revolving credit line Oil and gas producer Petrom has contracted a multi-currency revolving credit facility amounting to EUR 930 million
WEEK in numbers
8.5 percent of Romania’s total farmland is owned by foreigners, according to the Agriculture Ministry. Non-Romanians own 709,000 hectares of farmland
831 million EUR was the value of the local IT market in 2010, according to PRM Research, down 2.6 percent from the previous year with a tenor of three years, and a two-year extension possibility. This will replace the EUR 875 million of credit facilities taken out in 2008 and 2009, with maturity in 2012. This new credit will be used to finance the firm’s current investments program and for other corporate operations. The transaction saw BNP Paribas, BRDGroupe Societe Generale, Citi, Raiffeisen Bank International and Unicredit act as book runners and mandated lead arrangers. The bank syndicate includes 14 domestic and international lenders. As of November 23, the unused committed facilities, which are available to the Petrom Group, amount to approximately EUR 1 billion.
RETAIL Dedeman opens fifth store this year Romanian DIY retailer Dedeman has put EUR 10 million into opening its 26th local store this week. The 10,000-sqm shop, which is located in Tulcea, is also the fifth unit opened by the local retailer in 2011 after ones in Cluj, Drobeta Turnu Severin, Baia Mare and Alba Iulia. This year’s expansion has helped the company to surpass its 10 percent turnover increase target, according to Dedeman representatives. The company has also announced plans to open five more outlets next year.
Local IKEA reports 10.5 percent sales increase The only IKEA store in Romania has reported a 10.5 percent sales increase between the beginning of September 2010 and the end of August 2011, totaling RON 361.8 million (approximately EUR 84 million). The store, which is located in the Baneasa retail park in Bucharest, has sold 11 million products. Furniture represents 60 percent of the products sold while the rest are various accessories.
www.business-review.ro Business Review | November 28 - December 4, 2011
4 NEWS MACRO
Romania on path of reform and fiscal prudence, Basescu tells conference R
Photo: Laurentiu Obae
L-R: President Traian Basescu, Dominic Bruynseels, CEO of Banca Comerciala Romana, Mark Mobius, executive president of Franklin Templeton Emerging Markets Group
state-owned enterprises (SOEs) can represent a source of financing for the government. Mobius added that the “legal system should be fair, allowing Romanians to take the state to court and win.” Romania is currently pursuing a restructuring and privatization plan for SOEs, such as CFR Marfa (the national rail freight operator). The country will also put up for sale minority stakes in energy firms Romgaz, Transgaz and Hidroelectrica.
Mixed energy balance
Romania is not a net importer of energy, according to Basescu, who told participants, “We are producing 100 percent of the electricity for internal demand, 75 percent of natural gas and a similar value for oil,” relieving the country’s dependence on imBasescu to Austrian banks ports. However, the energy market should be liberalized, something that has been partially achieved, as Mariana Gheorghe, CEO The new labor code that was adopted of Petrom, put it: “We have liberalization in earlier this year also covers around 1 million the oil market, a partial liberalized elecworking contracts in the legal area, and new tricity market and a regulated natural gas justice codes were adopted back in 2010. A market.” In the view of George Cristodornew healthcare law that will enter a periescu, senior executive director at E.ON od of public consultation this weekend will Romania, a transporter and distributor of reform the current restrictive healthcare natural gas and power, a liberalized gas system, and allow private insurers to offer market would increase energy-efficient services complementary to the public ones. consumption and deregulate the current system, under which all household consumers are considered vulnerable. Getting the fiscal house
back in order
Romania will achieve economic growth of 1.5 percent in 2012, and the budget deficit should reach 1.9 percent in cash terms, predicted the president, adding that the bulk of growth will come from increasing the absorption of structural funds from EUR 1.5 billion this year to EUR 6 billion, as the legal mechanism has been improved. This should mean less reliance on FDI. Basescu added that Romania will not create deficits to stimulate growth, but that certain adjustments may occur after the first semester of 2012, allowing a deficit of 3 percent in ESA terms. For 2013, the country should target a 0 percent deficit. On this topic Mark Mobius, the executive president of Franklin Templeton Emerging Markets Group, said that it would be more difficult for Romania to find money on foreign markets, but
Photo: Laurentiu Obae
“If you are preparing to leave the Romanian economy underfinanced during the current crisis, we will take it as lack of fair play” President
Photo: Laurentiu Obae
omania will be able to weather the financial storm and meet its growth targets, President Traian Basescu has confidently declared. The former naval officer compared Romania to a ship that has to respect its contract and get to its destination despite the conditions. This was among the pronouncements made at a conference organized last week by The Economist Group on Romania's economic potential. Basescu highlighted some of the reform measures that the coalition government has taken to improve the public finances. The number of public sector workers will decrease from 1.4 million to 1.1 million by the end of 2012. The jobs cuts have been made swiftly, and 180,000 state jobs have been slashed in the last 10 months. Parliament recently passed a new welfare law to reduce the number of programs from 54 to just 9. At present, the total cost of these programs exceeds RON 19 billion, and Basescu said that welfare policy had been used as an electoral tool over the last five years. The president also spoke about the new education law which is in accordance with Europe 2020 targets on education. Romania is trying to reduce school abandonment by 10 percent and increase the proportion of university graduates to at least 40 percent.
“The legal system should be fair, allowing Romanians to take the state to court and win” Mark Mobius, executive president of Franklin Templeton Emerging Markets Group Louis Borgo, senior banker, power and energy utilities, at EBRD, believes that Romania has been able to provide stability and predictability for the legislation supporting the green certificates scheme, but the Petrom CEO warned that production from green installments can't be fully supported
by the national grid, which needs EUR 500 million of upgrades, although no funding is available at the moment.
Romanian branches of foreign banks under the radar Basescu hopes the recent announcement by the Austrian Central Bank, on a possible capital flow reduction for branches in CEE, including Romania, was either an error or
“Romania is a good place to make money” Dominic Bruynseels, CEO Banca Comerciala Romana a misunderstanding of the possible effects. “If you are preparing to leave the Romanian economy underfinanced during the current crisis, we will take it as lack of fair play in your relations with Romania,” Basescu said. He boldly reminded the country’s “European friends“ that the privatization of the banking system was a precondition for EU accession, and that huge profits were made by banking institutions in Romania, during the last decade. The president also warned that Romania would not pay for the greed of banking systems, the imprudence and the lending bonanza. “European capitalization mechanisms have been created that should prevent banks from strangling the Romanian economy through the reduction of capital flows, necessary both for the state budget and the private sector,” added Basescu. Cristian Popa, vice-governor of the Romanian National Bank (BNR), swiftly responded that the bank has common goals with regulatory authorities across Europe and mother banks, and a possible massive decrease in the sums that mother banks give their local subsidiaries could peg back economic growth and impact the balance sheets of local banks with foreign capital. “We are not talking about capital, but liquidity, and we are not talking about current financing stock but additions to it, where a balance should be reached in the loans to
deposit ratio,” he said. Dominic Bruynseels, CEO of BCR, commented that the capitalization of banks in Romania is above the EU average. Austrian Erste Group, which has a majority stake in BCR, currently has a EUR 7.5 billion exposure in Romania. Bruynseels added that large loans of over EUR 10 million are under pressure, but lending to SMEs will remain unchanged. Trends in lending will focus on local currency and the retail segment will pick up once confidence in the labor market improves. The BCR CEO added that the foreigners who had previously invested in Romania are now doing so again, concluding, “Romania is a good place to make money.”
Integrated agriculture strategy needed In the past year agriculture has proved to be a hot topic in Romania, but the lack of a broader and more integrated strategy for this sector continues to prevent Romania from tapping more into its oft mentioned agricultural potential, said Robert Arsene, GM of local agribusiness company Agricover at the event. He argued that even if Romania managed to double its grain production and become a significant exporter in the Black Sea area it would still have a hard time competing with other regional players such as Russia and Ukraine. Speaking at the same seminar, Martin Schuldt, country manager of Cargill Romania, added to the list of issues that need to be addressed the lack of predictability and the difficulty in consolidating fragmented land plots. ∫ Ovidiu Posirca, Simona Bazavan.
BR EVENT Foreign Investors Forum Learn more about Romania’s competitiveness and attractiveness to foreign investors at Business Review’s Foreign Investors Forum. Howard Johnson Grand Plaza Iridium Hall November 28, 2011
6 NEWS
www.business-review.ro Business Review | November 28 - December 4, 2011
IT&C
SAP looks to hire 400 people by 2014 in Nearshore Delivery Center
S
Courtesy of SAP
AP Romania, a subsidiary of SAP AG, has announced the opening of its nearshore delivery center in Romania, which will provide consultancy services to customers across Europe, the Middle East and Africa (EMEA). SAP aims to employ 400 consultants at the facility by 2014. “The reasons why we chose Romania are very simple. A nearshore center needs to have scalability, good universities and language advantages: Latin languages are not so widely spoken in Eastern Europe outside Romania. Moreover, Romania is part of the European Union. Of course, the lower level of salaries in Romania compared to the Western market that we are serving is also advantageous for us. The salary a consultant starts on is at least twice the average salary in Romania,” Gheorghe Olteanu, director of the SAP nearshore center Romania, told Business Review. The company has announced that it will invest between EUR 30 million and EUR 40 million, which will cover all the costs, including training programs for employees and the cost of the headquarters. The new facility builds on the former center for the SAP Global Delivery group, part of SAP Consulting, located in Bucharest, and will be followed by two other Romanian offices in Timisoara and Cluj. “In Timisoara and Cluj we will have centers from where we will act using local re-
Franck Cohen, EMEA President at SAP sources; they will be working points and they will report to Bucharest,” said the director. The SAP nearshore center will deliver its services primarily to the mature markets of Western and Central Europe to support customer projects in Austria, Belgium, Germany, Luxembourg, the Netherlands and Switzerland. “Such centers contribute significantly to the delivery of services, with reduced total costs of investment and ownership, as well as improved quality, speed and scalability for our customers,” said Franck Cohen, EMEA president at SAP. SAP aims to hire over 100 consultants annually over the next two years in Ro-
mania, through both the regular recruitment process and via the SAP Academy program conducted in cooperation with the leading universities in Romania. Training varies from six to eighteen months, and depends on the specialization. “Developers are the easiest to train. It is more complicated to train business consultants as such,” Olteanu told BR. Potential employees will be paid from the time when they start their training. “After they finish their studies and prove they are capable of learning the ropes, the financial package increases because we need to keep them interested,” added the director. SAP officials insisted this would not be a call center or support center, but a center of IT consultancy with engineering activities, where employees will receive complex training. The nearshore delivery center in Romania along with one planned in Portugal will be the two first SAP nearshore locations in Europe. Both facilities will serve customers around the continent. SAP had a worldwide turnover of EUR 12.46 billion last year, and is a strong player in the public sector. In Romania, data from the Ministry of Public Finances show that SAP posted a turnover of EUR 16.8 million (RON 73.1 million) in 2010. “One of the areas where SAP has developed very specific solutions is the public sector, for which we have developed solutions such as eGovernment, smart cities, health, tax management solutions and so on. My question would be: why don’t
you use SAP’s expertise in the public sector to help the development of the country?” said Cohen at a press conference. However, company representatives have complained that SAP has failed to secure projects in the public sector. “We have
“It is not normal that SAP has not won one auction over the last four years. It is clear that some people are not playing fair in this government. This has never happened anywhere else in the world, only in Romania.“ Franck Cohen lost all the public auctions in Romania over the last four years,” said Cohen, quoted by Hotnews.ro, adding that he does not have an explanation for this. “They should be the ones to explain, not me. It is not normal that SAP has not won one auction over the last four years. It is clear that some people are not playing fair in this government. This has never happened anywhere else in the world, only in Romania,” said Cohen. ∫ Otilia Haraga
www.business-review.ro Business Review | November 28 - December 4, 2011
8 MONEY
Liberal professions lob lenders lifeline Knowing the preferences and habits of their customers from the liberal professions may give a boost to lenders, who can adapt their ranges of operational, financing and saving products to the real needs of such customers. The potential is high as sole traders play a significant role in the development of the local economy. ∫ANDA SEBESI
Courtesy of Fujitsu
Like many other economic sectors in Romania, the local banking system has undergone major segmentation in the last few years. In a mature market like the local one, lenders have needed to differentiate from one another and try to offer a wide range of banking products and services in order to keep their customers and gain new ones. One interesting segment is products for members of the liberal professions, such as small medical clinics and offices, associations, larger clinics, architects, financial auditors, lawyers, tax consultants, accountants, officers of the court, pharmacists, doctors, dentists, veterinarians, public notaries, psychologists, foundations and tenant associations. It seems that lenders have spotted the potential of such customers as many of them – BCR, BRD-Groupe Societe Generale, Raiffeisen, Bank, UniCredit Tiriac Bank, Libra Bank and Banca Transilvania (BT) among others – have in their portfolio products and services created especially for them. There are also lenders on the local market, like ING Bank Romania for example, that, as a universal bank, address all categories of customers, including SMEs, which also means the liberal professions. “ING Bank entered on the SME market back in 2008, with its products and services serving as an alternative to the traditional bank. Our products offer customers both the freedom to decide and transparency,” say the bank’s representatives. “In order to support the development of all the market segments, including niches like the segment of authorized individuals (PFA), ING has greatly adapted and customized its range. It is about a special form of ING Professional – ING Professional for PFAs – which includes conditions intended to help these customers,” say bank representatives. BCR also addresses the PFA segment with financial products and services that meet such customers’ needs for both financing and saving. “In addition, through the current account package PFA BCR, we offer our customers more tools to facilitate their interaction with the bank,” say representatives of BCR. The current account package PFA BCR was launched last year as a combination of products and services that allows customers to manage their financial resources easily and efficiently at a reasonable price. “We also developed exclusively for our customers from the liberal professions the concept of Personal Banking, through which we offer them a dedicated adviser to provide them with customized and specialized consultancy on all of our banking products and services. They also can benefit from customized solutions, including
Upwardly mobile: members of the liberal professionals are often high earners, making them of interest to banks complete financial planning adjusted to their needs,” they add. Elsewhere, BRD was one of the first lenders in Romania to have focused on this market niche. It launched and developed its range of loans from “Gama Expert” back in 2006. This includes solutions for financing adapted to suit the activity of a clinic or bureau, both to meet current needs and investment in equipment, modernization and the acquisition or building of a professional office. In 2008 the bank launched BRD Profit, packages that enable customers to bundle their banking expenses into a single monthly subscription fee. Later the lender also came up with Atucont PRO, a savings account that combines the advantages of a current account and a bank deposit. “Our customers have been interested in our range since the beginning and they have also helped us to continuously develop and improve it so that it could meet all their needs,” say BRD-Groupe Societe Generale representatives. Meanwhile, Raiffeisen Bank started to offer products for liberal professionals in 2008, with the lender aiming to have a customized and dedicated offer for this type of customer. “Individuals that practice the liberal professions can earn high incomes. Because of their earnings and social status, liberal professions form the middle class which is essential for economic development,” says Dragos Calin, director of the microenterprise segment at Raiffeisen Bank. According to him, the lender’s portfolio of customers from the liberal professions numbers about 7,000 clients, of whom more than
12 percent have accessed financing from Raiffeisen. The lender has both an dedicated operational offer and three categories of loans for liberal professions: Start-up, Flexi and Term Loan Invest. It also has the Cont product for officers of the court. Last but not least, BT launched its medical division back in 2007, as one of its business wings alongside corporate, SMEs and retail. “We launched it in order to mark the beginning of a financial partnership between BT and the Romanian medical community,” says Andrei Baican, director of the medical division at BT. The lender’s portfolio includes more than 30 products and services for doctors, which have been launched over the last four years. According to Baican, over 20,000 customers from the medical community work with BT’s medical division at present. “We know very well the specifics of the local medical environment. Our process of developing products is ongoing and we are always able to offer solutions adapted to changes in the healthcare business environment and meant to replenish the benefits that doctors appreciate,” says Baican. The bank has in its portfolio loans, saving products, customized savings and credit cards, solutions for managing a current account, internet banking and e-commerce, all of them adapted to the features of the medical business. But why did the lenders target such customers? First because of their high potential, and second, because of the need to adapt to the new economic and social
conditions on the local market. “We believe that products for the liberal professions in general and for doctors in particular need to adapt to the changes in the economic environment. Whatever the macroeconomic conditions of a specific field are, banks need to respond quickly, through those products and services that help representatives of the liberal professions to solve their immediate problems and to successfully tackle the new opportunities that may come up,” says Baican. “The medical field is one that requires massive investments and that’s why we have created some non-credit products aimed at minimizing the costs of a relationship with the bank.” Asked about the perspectives, representatives of BRD-Groupe Societe Generale say that products and services for liberal professions is a sector with significant growth potential in the future and so they predict the number of products sold will rise. “BRD will continue to support the liberal professions by constantly improving its offer with innovative products and services,” they say. Meanwhile, Calin of Raiffeisen Bank believes that as a result of the changes set to take place in the local health system, doctors will make investments in their surgeries. “They will need the latest apparatus and equipment in order to keep their clients and provide quality services. So, at least some of them will buy them through medium and long-term loans,” adds Calin.
anda.sebesi@business-review.ro
www.business-review.ro Business Review | November 28 - December 4, 2011
LISTING
Property Fund wants second listing in Warsaw
Courtesy of Property Fund
Grzegorz Konieczny, portfolio manager at Franklin Templeton
T
he Property Fund is looking for a second listing on the Warsaw Stock Exchange, but the regulatory body the CNVM (Romanian National Securities Commission) fears that this would see liquidity transferred from the local market, according to Grzegorz Konieczny, portfolio manager at Franklin Templeton Investment. The fund manager says that the local market will have sufficient liquidity and expects the listing on the Warsaw Stock Exchange to take place in the first half of 2012. The Property Fund was listed on the Bucharest Stock Exchange in January of this year, after Franklin Templeton Investment took over as management and investor administrator 14 months ago. The net asset value of the fund is EUR 3.5
Property Fund
3.5 billion EUR is the net asset value of the Property Fund. Companies in the energy sector make up an 86 percent share of the fund
billion, with 86 percent being shared by companies in the energy sector, such as Hidroelectrica, OMV Petrom, Romgaz and Nuclearelectrica. “The potential for hydropower in Romania is huge but we need a regulatory regime. Right now, Hidroelectrica and Nuclearelectrica are charging low prices. So we hope that working with the government will lead to fair prices being set. A two-tier system for industry and consumers could be put in place. Fuel prices are going up, the waste in electricity is extensive, and people become more conscious if prices are higher,â€? said Mark Mobius, executive president of Templeton Emerging Markets Group. Mobius added that Romania had made a daring decision when it agree for a private company to manage a portfolio of state-owned firms, but that rapid reform is needed for these companies. He referred to regulatory reform, the correct pricing of electricity and a deregulated framework for setting up a new enterprise. The fund is encouraging the Romanian government to set up IPOs or SPOs for companies such as Hidroelectrica, Nuclearelectrica and Romgaz. Last week, during an event on energy, Konieczny forecasted that Romania could obtain up to EUR 3.5 billion by selling minority stakes in Hidroelectrica and Nuclearelectrica. Konieczny said that the government decision to assign private managers to state enterprises will facilitate the listing of these companies on the stock exchange. The first five companies that will have private management, which include Hidroelectrica and Oltchim, are in the portfolio of the Romanian Ministry of Economy. Pedersen & Partners has been selected as the consultant that will draw up the management requirements to recruitment companies. The Property Fund was established in 2005 to compensate Romanians whose properties were confiscated by the former communist government. Franklin Templeton took over as investment manager and sole administrator in September 2010. The number of companies in the Property Fund has been reduced through sales from 83 at end-September 2010 to 76, out of which 29 are listed, at end-October 2011. The Ministry of Public Finance holds a 3 percent stake in the fund, while a combined 50 percent share is owned by Romanian and foreign institutional investors. The remaining 47 percent stake is split among residential and non-residential individuals. âˆŤ Ovidiu Posirca
MONEY 9
www.business-review.ro Business Review | November 28 - December 4, 2011
10 LINKS
The soft skills behind the hard figures Telecom operators in Romania probably have it easier than in other countries when managing their customer relations, with no shortage of applicants with the right language, computer and communication skills. Lower labor costs are also a big motivator for these players, who run businesses of hundreds of millions of euros, and must keep a sharp eye on the level of customer satisfaction. ∫ OTILIA HARAGA
Number of call centers: 2 own, 1 outsourced Location: Ploiesti and Brasov Number of employees: 1,300: 800 in Ploiesti and 500 in Brasov Average age of operators: 25 Investment: EUR 1 million overall
Orange Romania Courtesy of CCC
An employee who works in a customer relations center for a telecom player needs to have certain skills such as computer literacy and knowledge of the Romanian and English languages. The candidate also needs a set of ‘soft skills’ such as communication abilities, customer orientation, organizational and activity planning skills, and team work. After joining the team, he or she will follow a training program that lasts on average one month, to learn the ropes of communication, become familiar with the company’s products, services and working procedures, and learn to work with certain applications. The scope of the training can include customer service, communication techniques, managing conflict, negotiation and sales skills. Although telecom players do not disclose the figures, it is widely known that call centers have a high staff turnover. “Employers understand this because the work is hard – eight hours in headphones is not an easy job,” says Bogdan Dragoescu, senior business development manager at Smartree. On average, call center operators will stay in the job for one to two years in Romania. “Working in a call center as a first job is very hard but also very good for shaping future professionals in any domain. All organizations try to retain talent and the call centers are for many of them the pool from which they ‘extract fresh blood’, especially in the case of IT&C companies where the call center is not their core business,” adds Dragoescu. But the picture is varied. “In mature countries where the average age in the call center is higher, the rotation is also lower. People who have undertaken professional reconversion programs following lay-offs start to appreciate these jobs and fit in there,” he says. Vodafone, the second largest telecom player in Romania, was the first operator to open a customer relations center in Bucharest in March 1997. The company then opened a second such center in Brasov in 2001 and a third one in Ploiesti in 2006. It remains with only the centers in Brasov and Ploiesti. The operator has invested approximately EUR 1 million in telecommunication equipment and the modernization of the two buildings. The call center in Ploiesti has four floors covering a total surface of 5,500 sqm. The center in Brasov, also comprising four levels, is smaller, with a surface of 4,500 sqm. Both facilities include training rooms, a medical clinic, dental surgery, relaxation area and a restaurant. “Since we launched the two call centers, over 3,000 young people have over time joined the Vodafone teams in Ploiesti and Brasov. At the moment, the team in Ploiesti consists of 800 employees and in Brasov there are 500,” say company officials. The average age of the employees is 25, and they are recruited from local universities. “In Ploiesti, 90 percent of the employees attend the Faculty of Oil and Gas,”
CALL CENTERS Vodafone Romania
It’s good to talk: call centers draw on language, communications and IT skills say Vodafone officials. Normal hours are from Monday to Friday between 8 am and 10 pm and on Saturday and Sunday between 8 am and 6 pm. During the night, they take emergency calls when customers report their handset or SIM lost or stolen, and need to block the SIM card or unblock the PUK code. Clients call mainly to request information on services, handsets, bills, how they can configure Vodafone services and handsets, and how they can activate new services and subscriptions. The customer relations center in Brasov handles over 30 percent of the calls to this number, while the remaining 70 percent are routed to the bigger Ploiesti center. The team in Ploiesti answers 19,000 phone calls a day. Vodafone officials say that in its ten years of existence, the Brasov center has answered over 27 million calls. Five years since the opening of the Ploiesti call center, it has taken over 16 million calls. Orange, currently the largest telecom operator in Romania, has five call centers, which are located in Bucharest, Timisoara, Cluj and Brasov. Of these, two are outsourced to specialized companies. The biggest facility is in Bucharest and the company says it invested EUR 2 million in opening this unit. “A functioning call center needs modern routing solutions, call monitoring systems, a functioning CRM and applications that provide information to rapidly meet the demands of the clients. The investment also includes offices and furniture. Last but not least, a significant sum goes into the staff” says Popescu. The capacity of a call center is connected to the new services that are introduced by the operator. “For instance, this year the number of users of data services has increased. Of course we will allocate resources in the call center to this area as well,” explains Popescu. Though it chose not to disclose the number of employees who work in its call centers, Popescu said their average age is 26 years old. Call center jobs
offer a gateway to employment in other departments, as Popescu says the company promotes internal recruitment. “Ninetynine percent of our employees are students or university graduates. After several years of gaining expertise, each has the opportunity to be promoted or switch departments,” she says. But of course, there is selection and competition. Across the company, this year over 23 percent of employees have changed their role in the organization. “In customer service, it is about 18 percent,” says Popescu. Cosmote Romania manages its customer relations via three call centers, of which one is outsourced. The two call centers that belong to Cosmote provide services to postpaid business and residential customers, and are located in Pitesti and Bucharest. The outsourced call center caters for prepay customers and is also in Bucharest. At the moment, 250 employees, both Cosmote staff and freelancers, manage the customer relations, taking approximately 15,000 calls a day. The average age of the operators is 24. Recently, Romtelecom, Cosmote’s sister company which is also part of Greek group OTE, started a department of business process outsourcing that it hopes will bring significant revenues in the future. The operator also has other call centers about which it chose not to disclose information. “The main Romtelecom BPO call center is located in Bacau, but there is also a smaller such structure in Bucharest as one of our clients specifically asked for this location. Additionally, we have a back-up structure in Brasov for the call center in Bacau,” say officials. The call center in Bacau employs 75 agents. “Being a new business line, we wish to develop it over the coming period, so we have already made sure we will have sufficient capacity to serve our clients. The maximum figure we are looking at for the staff in Brasov is 300,” say officials. The BPO center already has several clients, including a
Number of call centers: 5 of which 2 are outsourced Location: Bucharest, Timisoara, Cluj, Brasov Number of employees: not disclosed Average age of employees: 26 Investment: EUR 2 million (in the Bucharest center alone)
Cosmote Romania Number of call centers: 3 of which 1 is outsourced Location: Pitesti and Bucharest Number of employees: 250 Average age of employees: 24 years old Investment: not disclosed
Romtelecom Romania Number of call centers: one BPO center Location: Bacau (main center), Bucharest (small center), Brasov (backup structure) Number of employees: 75 in Bacau Average age of employees: not disclosed company from Italy. The client companies are active in banking, insurance, car dealing and the food industry. “We expect this business line to develop in the future, especially since our figures show that in Romania the market of call center services amounted to over EUR 100 million in 2010,” say officials. Call center salaries start from RON 800 net and can go up to RON 4,000 net, for exceptionally skilled workers. For team leaders and operations managers, the salaries are part of tailored financial packages, explains Dragoescu. These salaries are “clearly lower in Romania than in other countries,” but these differences are “irrelevant” even if they can range from 20 percent to 500 percent. This is because when a company develops a call center it needs “a location that meets certain standards: it needs up-to-date IT&C infrastructure, and it also takes into consideration the transportation infrastructure in the area and aid from the government.
otilia.haraga@business-review.ro
www.business-review.ro Business Review | November 28 - December 4, 2011
INTERVIEW
Lack of updates opens door to online attacks Nearly half of Romanian users are exposed to online threats through mere negligence and ignorance of the importance of updates, says Teodor Cimpoesu, managing director of Kaspersky Lab Romania and Bulgaria.
Courtesy of Kaspersky Lab
∫ OTILIA HARAGA What are the most important malware threats faced by Romanian users? Recently, Kaspersky Lab rang the alarm that nearly half of the Romanian users do not update the programs installed on their computer, even though they use free software. Their PCs become vulnerable to online attacks that exploit security weaknesses in old software versions. For example, 47.4 percent of the personal computers in Romania are vulnerable to informatic threats because they do not have the latest version of Winamp. All the media player formats older than the 5.621 version allow a potential hacker to access the victim’s computer remotely. Talking strictly about viruses, center stage is the Duqu Trojan, whose many similarities to the Stuxnet worm (created for industrial espionage and sabotaging Iran’s nuclear program) indicate either that these two types of malware were created by the same group, or that the source of the code used for Stuxnet, which has not been made public, was used by another group of cyber criminals. To spread, Duqu exploits a Microsoft vulnerability, identified in Windows’ system of fonts – Win32k TrueType – and affects a variety of office type programs (text editors). We recommend clients use an advanced security solution and install all the security updates distributed automatically by Microsoft. What is Kaspersky Lab’s strategy in Romania next year? We will continue to count very much on our products, the most recent examples of which are Kaspersky Endpoint Security 8 for Windows, the endpoint security solution for companies, and Kaspersky Security Center 9, the administration con-
sole used for the configuration of the solution. Recently, we have begun collaborating with our partner RHS Company on a program for retail that involves small and medium IT stores which tend to be ignored during this period. Many firms have focused on the online or on large retail chains, but these small stores still exist, have loyal customers, and offer easily accessible services. We will also focus on supporting our partners. In Romania, Kaspersky Lab has approximately 700 partners and sub-distributors for its consumer and business security solutions. Kaspersky Lab is a 100 percent independent vendor that defined its position on the market of security solutions via partners, so the main strategic lines in 2012 will continue to be in this direction. What is the company’s local market share? Kaspersky Lab has an estimated share of approximately 20 percent of the Romanian endpoint security solutions market. We are optimistic and believe we will be able to add a few more percentage points to our market share by the end of the year. This is because I am counting a great deal on the new endpoint business solution Kaspersky Endpoint Security 8 for Windows, launched in October, which combines local security technologies with the cloud. What revenues do you estimate the firm will post this year? We cannot disclose revenue figures. However, I can tell you that 2010 was a very good year with more than 40 percent growth in revenues compared to 2009. This year we expect to repeat the same result. In 2011, the most popular security solutions for individual users were Kaspersky Internet Security 2012 and Kaspersky PURE Total Security. For companies, the Kaspersky Open Space Security solution was the best seller. At the moment, the weight of business clients is approximately equal to that of individual users, about 50-50. What percentage of your sales come from the online store? In 2008, when we launched the online store, we did not see it as the main way to boost sales because the focus was to develop and support a strong network of partners. These partners, in turn, sell both via their online stores, and in retail. The ratio of sales via the Kaspersky Lab Romania online store is under 5 percent.
otilia.haraga@business-review.ro
LINKS 11
www.business-review.ro Business Review | November 28 - December 4, 2011
12 FOCUS
UTTIS shapes up for EU-level competition
Top 100 CEOs in Romania to attend CEO Clubs Grand Launch & Forum seller Dr. Srini Pillay, is a highly sought after Certified Master Coach who has been coaching executives for the past ten years. He is the CEO of NeuroBusiness Group™ (NBG) based in Cambridge, Massachusetts, USA. He is also Assistant Clinical Professor at Harvard Medical School and an internationally recognized fear, anxiety and brainimaging researcher. He has released three top-selling books and has influenced many high-ranking executives. He has released three books: “Life Unlocked: Seven Revolutionary Lessons on the Science of Fear (Rodale, 2010), “Your Brain & Business: The Neuroscience of Great Leaders (FT Press, 2010/11) and “The Science Behind The Law of Attraction” (NBG, 2011). In this forum, he brings together his expertise in brain science, executive coaching and leadership to introduce us to cutting-edge tools and methodologies on how to deal with fear and stress in the context of corporate leadership and success.
After expanding production capacity with the help of a Norwegian grant, UTTIS Industries, a Romanian manufacturer of industrial heating equipment, is looking to access the Russian market.
Courtesy of Uttis
Norwegian would: UTTIS got a grant
Sign up to participate in the CEO Clubs Grand Launch at www.ceoclubsromania.org.
∫ OVIDIU POSIRCA
ADVERTORIAL
CEO Clubs Int’l Romania was founded as a Non-Profit association in September 2011 and is a Chapter of the CEO Clubs Int’l that operates since 34 years as one of the biggest and oldest business clubs worldwide, with more than 8,000 members. According to the Founder of CEO Clubs International, Dr. Joseph Mancuso, “the Club is a learning organization, offering market leaders a unique environment of knowledge, trust and cooperation in order to develop the quality and profitability of their organizations”. Over the past three decades, the CEO Club has attracted many international business leaders such as Ted Turner, Wally Amos, Zig Ziglar, Fred Smith, Steve Forbes, Michael Bloomberg and Donald Trump. The Grand Launch & Forum of CEO Clubs – Leadership in High Stakes, will take place on Wednesday, December 7th, at Hilton Hotel in Bucharest, featuring two internationally-renown speakers. The first is Dr. Joseph Mancuso, Founder and President of CEO Clubs Inc., whose books and tapes have been heard or read by more business people than those of any other management author. An inspired management guru, he established the Club in the USA for decision makers to meet with peers and create a group of “trusted advisors” in order to share solutions, problems and interact. Our second speaker, international best-
“In 2008 UTTIS Industries was looking to build a larger production hall and heard the news about the Norwegian grants system, so we created a project with EFD Induction Romania, a Norwegian company that ranks top in Europe and second worldwide in the induction heating technology,” said Petruta Druga, the administrator of UTTIS Industries. The two companies jointly developed two production halls and two research-development buildings in Vidra, Ilfov County, near Bucharest. The project also included the development of the Romanian Industrial Heating Center, which should become a significant heating technological center in Central and Eastern Europe in the long term.The cost of the project was EUR 5 million and the grant received from Innovation Norway totaled EUR 1.3 million, which was split between the two companies. Although the co-financing was not extensive, Druga said that the funds were made available very fast and with little bureaucracy from Innovation Norway, while the business relationship with EFD, the Norwegian partner, was also efficient. “The paramount condition for accessing the grants was a partnership with a Norwegian company in developing a project,” added Druga. She said that the absorption rate of Norwegian grants has been 90 percent in Romania, and this value could have been even greater, had it not been for the financial crisis. The building works for the Vidra complex started in the summer of 2009 and were finished in spring of this year. Last year, UTTIS was able to start operating in a new production hall of about 1,900 sqm and a thermal heating R&D center that covers 1,300 sqm, while EFD, which occupies a similar surface, settled here this year. UTTIS has at present 100 employees, half of whom work in the production hall. Another 10 are based in the R&D center.
EFD currently employs 60 people. The company has also hired people from Vidra, where the partner companies are the largest investors. Druga noted that the Norwegian grant had helped UTTIS remain competitive during the economic crisis and allowed it to maintain its turnover, which currently stands at EUR 2.5 million. The company will be looking to post the same turnover in 2012. However, UTTIS may see a decrease in business if demand from Western Europe economies reduces, Druga warned. Outlining the firm’s main markets, she said, “UTTIS manufactures heating industrial equipment for local and foreign clients. In Romania we are working with multinationals in the automotive industry like Renault in Pitesti, Timken in Ploiesti and a subcontractor of Mercedes Benz in Cugir. We address the naval, automotive and metallurgical industry, while EFD induction manufactures innovative induction equipment. Our main export destinations are Germany, Austria, Holland, Finland and France.” For 2012, the Romanian company will try to access the Russian market, where industrial sites are underdeveloped and budgets for equipment acquisition are more generous. While the local competition is not tough, at EU level it is challenging. Hence, the company is trying to drop its current business models, which involve the development of tailored equipment, and move towards standardized production. Human capital is also an issue for UTTIS, as it constantly needs to employ experienced engineers to design complex equipment. However, Druga said that the company will focus more on developing the skills of young graduate engineers who could later be employed by the company. At the same time, the firm will keep on searching for qualified professionals. Norway, with support from Iceland and Liechtenstein, has offered grants totaling EUR 98.5 million in the last two years and the sum is expected to increase to EUR 300 million by 2014. The financial vehicles for this program are SEE and Norway Grants. Company representatives say the grant allowed a constructive partnership between the two firms that helped contain the effects of the crisis and allowed the companies to focus on expanding their businesses. This resulted in the manufacturing of high-performance equipment with the efficient consumption of energy and brought employment opportunities for inhabitants of Vidra, where jobs are scarce.
ovidiu.posirca@business-review.ro
www.business-review.ro Business Review | November 28 - December 4, 2011
CITY 13
MUSIC REVIEW
Bungee jumping with violin strings ∫ ANDREA OVANEZIAN
Tomescu was awarded the rare opportunity and to appreciate their different techto perform on the master’s Guarneri violin niques, themes and colors. Such contrasts While the euro zone seems to be falling are further illustrated by their nicknames, (a ‘bail-out’ gift from an Italian count, replacing the Stradivari which Paganini lost apart, here is proof that a more perfect bestowed by the famous violinists who in a card game). Although both Guarneri union is possible. The music-video DVD have performed them over the past two and Stradivari violins performed as their 24/24 unites the artistry of three ‘master centuries. Among my favorites are no. 5 blasters’ from different time zones – a Ro- ‘Bungee’, no. 18 ‘Horn of the Stagecoach’, ‘leading lady’, Paganini ultimately favored his 1743 Guarneri (‘the cannon’), whereas and no. 11 ‘Canzonetta’ (a song for multiple manian virtuoso violinist, Alexandru Tomescu prefers the 1702 Stradivari (ElderTomescu; an Italian heritage composer, voices) which I would nickname “PaganiVoicu). ni Resurrected’. Niccolo Paganini; and a Grammy-winning The video segments, which were filmed Adding to his discography of 11 CDs, German recording engineer, Jakob Handel. in Romania, include scenes of Tomescu Tomescu’s first DVD is truly exceptional Tomescu recorded 24/24 upon the replaying the violin at Cantacuzino Castle thanks to the recording producer and encent completion of his national concert tour (Zamora) and in a glass-processing waregineer Jakob Handel. Unlike some of performing Paganini’s 24 Caprices on a 1702 house. Footage detailing a violin’s deconTomescu’s prior recordings, which were Stradivarius (awarded on a five-year loan struction and construction at the Gliga mediocre at best, or certain live performfrom the Romanian government). The factory (Reghin) provides a subtle reances where the acoustics were poor (the DVD title refers to Tomescu’s extraordinary venues were not designed as concert halls), minder of the cycle of artistic creation. I preparation for the concert tour, playing the usually dislike the combination of video Handel succeeds in crafting a much richer 24 Caprices seemingly 24 hours a day for with classical music, as I find it gratuitous and powerful sound for Tomescu’s vintage several months. For Tomescu, the process and distracting. But to my surprise, the violin (an instrument designed for intimate of ‘becoming Paganini’ involved surpassvideo images produced by Quartz Media ing the barriers of difficulty (technique, chamber music rather than large concert added a gentle backdrop that allowed me halls). Handel was awarded a Latin Grammemorization), to reach that space where to focus on listening to the music. my for best classical album (plus subsethe impossible becomes possible. Among Testing our patience to listen, especially quent Grammy nominations), and has the most difficult pieces for violin, Pain an era when we lack patience with each recorded for several major violinists. Usganini's Caprices are rarely performed in enother and ourselves, is Tomescu’s ultiing remarkably compact recording equipsemble even by the top violinists. mate goal for 24/24. ‘Bungee jumping’ is the ment, he can also work with clients outside Incredibly his first opus, Paganini comphrase he uses to describe his endeavors to the studio, and so was able to record posed the 24 Caprices for solo violin durintroduce the general (and younger) pubTomescu at the Bucharest Conservatory of ing 1802-1817, but never performed them lic to Paganini’s 24 Caprices and the distinct Music. in public as he wanted to perfect their artissound of a tri-centenarian violin. 'Bungee The DVD also features an interview with tic dimensions (virtuosity was not their uljumping' also captures the essence of muTomescu (regrettably not subtitled), which timate scope). Although 24/24 is not a live sical expression, which for Tomescu, means provides unusual insight into both violinrecording from the concert tour, it provides ists. As a Paganini Competition winner, passing boundaries and exploring new dia rare opportunity to hear all 24 Caprices
The DVD, priced at RON 55, is available at Carturesti and Humanitas bookstore, or from QuartzMedia.ro
mensions where “imagination is the final frontier of the free spirit”. So imagine that our universe is a symphony of vibrating strings and parallel dimensions, and that somewhere in the 11th dimension, this DVD is discovered in a ‘best of EU’ time-capsule. The enclosed review would read “a rare import from humans of different tribes; a fine example of artistic virtuosity transcending the frontiers of time and other dimensions; an excellent holiday gift for aficionados and newbies to fourth dimension music; product warning – highly addictive, inducing countless hours of replay.” E.N.: Tomescu references from DVD interview
www.business-review.ro Business Review | November 28 - December 4, 2011
14 IN TOUCH WHO’S NEWS
Business Review welcomes information for Who’s News from readers. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
Sorin Ganciu has been promoted to senior manager of the audit department at Mazars Romania. He is a graduate of the Faculty of Finance, Insurance, Banks and Exchange Markets of the Academy of Economic Studies (A.S.E.). Ganciu is also a member of ACCA, CAFR and ANEVAR. He has over eight years’ experience in financial auditing, internal audit and financial due diligence. Ganciu has previously worked for brewer Brau Union and RSM Hemmelrath, which merged with Mazars in April 2007.
Ioana Sarbu has been promoted to senior manager of the tax advisory department at Mazars Romania. She is a graduate of the Babes-Bolyai University in Cluj-Napoca, the Faculty of Economics. Sarbu is also a member of ACCA, CCFR, CAFR and CECCAR. She has more than eight years’ experience in the tax and accounting area, financial auditing, financial and tax due diligence assignments, plus mergers and acquisitions. She previously worked for RSM Hemmelrath, which merged with Mazars in April 2007.
Cosmin Stefanescu has been promoted to senior manager of the legal department of Mazars (SCA Duncea, Stefanescu & Associates). He is a member of the Bucharest Bar Association and has 12 years of professional experience in providing legal advisory services. His main areas of expertise are corporate & commercial, mergers & acquisitions, labor law, real estate transactions including due diligence, banking and competition. He previously worked for RSM Hemmelrath which merged with Mazars in April 2007.
Cristian Herghelegiu formerly head of business development & strategy, has been appointed country manager of ePayment Romania. Herghelegiu has 13 years of experience in IT, having coordinated various businesses, both online and offline. In 2004, he launched and coordinated Microsoft Dynamics, the business solutions division of Microsoft Romania. Later, he launched Central Europe On-Demand, a company specialized in software-as-a-
ISSN No. 1453 - 729X
service. In 2010, he joined the ePayment team as business strategist and since November 2010 has served as country manager of ePayment.
Daniel Nicolescu who has been filling the country manager position of ePayment Romania until now, has been promoted to chief product officer of the entire PayU group of which ePayment is part. He will be in charge of strategy and development for the group’s products. Nicolescu has had a 15-year career in IT, and is specialized in electronic commerce, online payments and software distribution. He was involved in the development of the RAV Antivirus, which was sold to Microsoft in 2003. He was also one of the founders of Avangate, which was partly acquired by 3TS Cisco following an EUR 4 million investment in 2010. Nicolescu was also one of the founders of ePayment, which was acquired last year by PayU, part of Naspers group.
Otilia Doina Milu has been appointed managing partner of RVA Insolvency Specialists SPRL after Calin Andrei Zamfirescu and Stan Tarnoveanu, two of the company’s founding members, relinquished their share in the company. She joined the company in 2000, becoming executive director. Milu has over ten years of professional experience in the field of insolvency. Her areas of expertise include judicial liquidation and reorganization, corporate management, marketing and project management.
FILM REVIEW
Puss in Boots ∫ DEBBIE STOWE Directed by: Chris Miller Starring: Antonio Banderas, Salma Hayek, Zach Galifianakis Starring: Cinema City Cotroceni, Cinema City Sun Plaza, Grand Cinema Digiplex Baneasa, Hollywood Multiplex, Movieplex Cinema, Samsung Imax Cotroceni, The Light Just in case USD 2.5 billion was not enough, more money is being wrung out of the Shrek franchise with this “spinoff prequel”. The film terms franchise, spin-off and prequel tend to evoke despair, and this project, based on a minor character, smacks somewhat of cynicism. Happily, though, the movie will soon have dispelled any doubts and won you over with its exciting 3D sequences and mischievous humor. At first glance – it’s animated and features fairy tale characters – this is a children’s film. But there’s plenty for adults too and at times the wit strays into risqué territory – there are two genitals gags in the first five minutes. Puss is portrayed as a tomcat, in the figurative sense as well as the literal, which is developed into a running joke. One-liners on hotel breakfasts, catnip, eggs and the nine-lives theory (“that is just a rumor spread by dogs!”) are also aimed at a grown-up audience. Puss is playfully voiced by Antonio Banderas who seems to have a lot of fun with the role. Our feline friend is an outlaw after being wrongly implicated in a crime that was really the work of his former best
The cat in the hat: Puss entertains bud, the egg Humpty Alexander Dumpty. The plot – well, it centers on some magic beans and the Golden Goose, and you don’t really need to know any more than that. Provided that you have once watched a Hollywood cartoon, you will already know that there’s a feisty love interest with whom Puss initially doesn’t get along, that good characters get happy endings while baddies are punished (moderately of course – it’s not Scorsese), that semi-bad characters can be redeemed, that what’s important is friendship, loyalty and being the best you can be and true to yourself, and so on. In short, Puss doesn’t have anything new to pull out of his boots. But the conventional story is played out with superb 3D effects – it’s a Western and there are some great desert scenes – and a lot of laughs, both from obvious visual gags and wordplay. Full of DreamWorks panache, it’s pacey, exuberant, and entertaining almost the entire time – and at a brisk 90 minutes they’re not pushing it. Pour yourself a shot of milk and prepare for feline filmic fun. ∫
FASHION
Razvan Patrunoiu has been appointed service delivery operations lead at Accenture BPO Delivery Center in Bucharest. He will lead the service delivery operations for Accenture in Central and Eastern Europe, which include the firm’s four BPO Delivery Centers in Prague, Bratislava, Warsaw and Bucharest. Patrunoiu, 34, joined the company in October 2010 as finance & accounting lead, being in charge of all finance & accounting BPO delivery projects in Bucharest. He has significant finance and commercial experience, achieved at Tchibo Romania where he held two different roles: finance & services director and country director and, previously, at Zapp as finance director.
FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALIST Otilia Haraga JOURNALISTS Simona Bazavan, Ovidiu Posirca COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi, Michael Barclay ART DIRECTOR Alexandru Oriean PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu
Versace for H&M comes to Romania ∫ DANA NICULESCU To anyone who saw Donatella Versace in a primetime TV commercial on Romanian channels, telling viewers, “My home, my rules, my pleasure” or the huge posters adorning the National Theater in Universitatii Square, the message was clear: Versace sells in Bucharest. So was it Romanians’ love of the signature elements of the Versace House – flashy color prints, studs, gold, glamour and sensuality – or the queues from the early spring when H&M opened its doors in Romania that made the difference? Whatever the reason, anyone familiar with the Swedish brand’s policy on the distribution of its limited editions by famous designers and artists since 2004 PUBLISHER Anca Ionita EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Ana-Maria Stanca SALES & EVENTS Ana-Maria Nedelcu RESEARCH & SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat
knows that of the nearly 2,300 stores around the world only some are chosen to stock these collections. The “Versace for H&M” line will go on sale at about 300 H&M stores and Bucharest is one of them. Romanians’ reactions were as expected. Many bought on impulse and some chose to buy only to have in their wardrobe something bearing the signature of the famous fashion house, whether the style suited them or not. The opportunity to acquire high fashion at low prices will continue and the announced extension of a spring/summer Versace line for H&M line may include Bucharest.
dana.niculescu@business-review.ro ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 Fax: 031.040.09.34 EMAILS Editorial: editorial@business-review.ro Sales: sales@business-review.ro Events: events@business-review.ro