Business Review Issue 4/2014 February 10 - 16

NEWS: The IMF has backed a controversial government measure aimed at cutting loan repayments and generating close to EUR 1 billion of fresh funds for the economy. The scheme has come under criticism from the business community »page 5

ROMANIA’S PREMIER BUSINESS WEEKLY

FEBRUARY 10 - 16, 2014 / VOLUME 18, NUMBER 4

FOCUS NEW LIMITATIONS COME INTO EFFECT ON DEBTORS PROPOSING REORGANIZATION PLANS IN INSOLVENCY CASES AFTER THE NEW CRIMINAL CODE & CRIMINAL PROCEDURE CODE ENTERED INTO FORCE THIS MONTH »PAGE 6

PUTIN ON A SHOW

Sochi 2014, at USD 51 billion the most expensive sporting event in history, puts Russia in the global spotlight. The country will do battle with main rival the US until February 23, with Romania’s athletes aiming for a top ten position » page 8

NEWS

LINKS

M&A doing A-OK?

Safe enough?

The M&A market hovered around EUR 1.2 billion last year, led by smaller transactions.

Energy and IT&C are key sectors for dealmaking in 2014

Data protection reform, establishing a single law for all EU states to better protect users’ personal information, is due by the end of the year

» page 4

» page 12

www.business-review.eu Business Review | February 10 - 16, 2014

NEWS 3

NEWS in brief BANKING Millennium Bank narrows 2013 losses to EUR 5.9 mln

tributed through the Panfoods unit.

Panfoods Romania reported a turnover of EUR 11.8 million in 2012.

Millennium Bank’s loss in Romania shrank last year to EUR 5.9 million from EUR 24.1 million in 2012, backed by higher banking income and lower costs, officials have announced.

The lender, part of Portugal’s Millennium bcp, said its banking income had risen 14 percent to EUR 27.7 million, driven by increases of 21 percent in net interest income and 11 percent in commission. Operating costs, meanwhile, fell 17 percent to EUR 28.7 million.

Millennium expanded its loan book by 13 percent to EUR 488 million last year, while deposits added 18 percent to EUR 365 million. Its solvency ratio stood at 13.5 percent by the end of December 2013.

Strauss Coffee, which has been present in Romania since 1994, is the biggest coffee producer on the Romanian market, giving Doncafe a market share of 22 percent in 2012. Strauss Romania reported a turnover of EUR 53.3 million in 2012, a 10 percent increase compared to 2011.

The firm’s general manager is Marius Melesteu, who is also responsible for coordinating operations in Serbia, Bulgaria, Moldova, Montenegro, Bosnia & Herzegovina, Albania and Macedonia.

FINANCE

Heating solutions company Ariston expects local sales of its wall-hung boilers to grow this year, despite the stagnant market. Catalin Draguleanu, country manager at Ariston Thermo Romania, predicts that sales of condensing wallhung boilers will rise by 20 percent in 2014, while conventional boilers should post a 5 percent gain.

Last year, the company’s business remained flat in terms of turnover and sold volumes. Wall-hung boilers currently generate 65 percent of Ariston’s local sales, while 30 percent come for electric boilers. Sales of solar systems, heating pumps and air conditioning systems account for the rest.

Most of the demand for wall-hung boilers comes from customers that have exited the centralized heating system, while 15-20 percent consists of replacements. Another 10-15 percent of the market is made up of new constructions.

Fitch affirms Bucharest at BBB-, outlook stable Fitch Ratings has kept Bucharest’s longterm foreign currency Issuer Default Rating (IDR) at BBB-, its long-term local currency IDR at BBB and its short-term foreign currency IDR at F3. The outlooks on the long-term IDRs are stable, according to Reuters.

The stable outlook reflects Fitch’s expectations that Bucharest will extend its sound budgetary performance, including healthy debt ratios, since it has no plans to increase debt in 2014. Fitch predicts real GDP growth will continue in 2014. The agency expects Bucharest to maintain its operating margin at around 30 percent as it has done over the past three years.

FMCG Doncafe producer buys Amigo brand for EUR 20 mln Strauss Coffee, owner of the Doncafe line, is to buy the Amigo instant coffee brand in a deal worth EUR 20 million, according to the Israeli company. Amigo, which is sold predominantly in Romania, is produced by Cia Iguacu de Cafe Soluvel of Brazil. The Competition Council must approve the deal.

Amigo, which first entered the Romanian market in 1983, had sales of USD 12.5 million in 2012, with a 1.8 percent market share. Its sole importer is Panfoods Romania, a subsidiary of Panfoods Co. Ltd based in the UK. The Brazilian-produced coffee is dis-

ENERGY Ariston estimates 20 percent condensing boiler sales hike this year

Recolamp: market for lighting equipment dims 5 percent Sales of lighting equipment in Romania fell by about 5 percent in 2013 y-o-y, according to Recolamp, the not-for-profit recycling organization founded by General Electric, Osram Romania and Philips Romania in 2007. Overall, some 6.55 million pieces of lighting equipment were put on the market in 2013, according to the same source.

Recolamp collected and recycled 480 tonnes of lighting equipment waste last year, reaching the 40 percent European target, based on the average sales for the last two years of the 153 compliant Romanian lighting equipment producers that it represents. The producers have transferred to Recolamp their legal obligation regarding the waste management

of electrical and electronic equipment.

On their behalf, the association oversaw the collection of 480 tonnes of lamps and luminaries.

Some 1,000 new collection points were set up last year, adding to the existing 8,400.

ONLINE

WEEK in numbers

EUR 32.9 bln Romania’s foreign currency reserves at the end of January 2014, up EUR 388 million on the end of 2013 when reserves totaled EUR 32.5 billion, according to central bank data

Mobile online payments double over past year Nearly one in ten online payments was carried out from mobile devices towards the end of last year, double the amount in January 2013. According to estimations

by Netopia mobilPay, over 8 percent of online payments were made from mobile devices.

Last year, 7 million online transactions were made by card, of which 400,000 were carried out from mobile devices, an annual average of 6 percent. About 60 percent of mobile online transactions were carried out from a smartphone, while the remaining 40 percent were made from tablets.

The company expects the number of online payments from mobile devices to double again in 2014 to a total of over 1 million, as more and more online stores invest in developing new mobile versions for their sites.

3.5% the rate to which Romania’s central bank cut its main interest rate. It fell a quarter of a point to a fresh all-time low, in line with market expectations

been relocated to Floreasca Park, in the north of the capital, the company has announced. The relocation took place in mid-January. Saint-Gobain rented 1,264 sqm of office space on the third floor of building A in Floreasca Park.

RETAIL Hugo Boss shuts up shop

PROPERTY CBRE Romania: industrial leasing activity up 82 pct in 2013 Over 250,000 sqm of industrial space was leased in 2013, up 82 percent compared to the previous year but 3 percent below 2011 levels, according to CBRE Romania. Most of this – 58 percent – was leased in Bucharest while the remaining 42 percent was in major cities such as Timisoara, Arad, Iasi, Brasov and Ploiesti.

The largest transaction recorded in 2013 was the renewal and renegotiation contract of Carrefour in Bucharest (for 45,000 sqm), followed by leases signed by logistics companies in Bucharest and for electronics production in Timisoara.

Another major lease, for a production unit, was signed by Lear Corporation in SoloIndustrial Park, Iasi. Bucharest, which has the largest stock of industrial space, reported a 12 percent vacancy rate (over 134,000 sqm) while in the rest of the country this varied between 10 and 14 percent (over 170,000 sqm).

Saint-Gobain Romania moves to new HQ The Bucharest office of construction materials producer Saint-Gobain has

Luxury brand Hugo Boss, which has been present in Romania via a local franchisee, is set to close its two local mono-brand stores by late February, as the contract is drawing to an end and sales are dwindling.

The two franchise owners, Andrei Alecu and Adrian Matei, decided not to renew the contract as sales have dropped by 10 percent a year for the past two years, according to zf.ro. The stores are in Bucharest and Constanta.

Most read on www.business-review.eu this week

New pro-business measures:

1 The state will cover half of salary expenses for job creators

2 Coca-Cola Hellenic Romania has a new financial director

The non-smoker’s guide to

3 Bucharest: Where to have a good time, SMOKE FREE Air travel: new EU regulations 4 for liquid, aerosols and gels Bitdefender recruits regional 5 operations sales director

www.business-review.eu Business Review | February 10 - 16, 2014

4 NEWS INVESTMENTS

Renewable deal-making slows over legal changes

D

eal-making in the renewable sector is set to slow in the coming years, after the government changed what it deemed the too generous subsidies for producers last year.

According to a report published earlier this year by law firm CMS and DealWatch on the M&A market in emerging Europe, the top two deals closed in Romania came in the renewable sector.

Prime Acquisition Corp, a blank check company based in the Cayman Islands and with operational offices in China, acquired minority stakes in 50 Romanian photovoltaic plants and the associated green certificates, in a deal worth EUR 288 million.

The second deal biggest deal, worth EUR 109 million, was signed in the wind sector. A joint venture involving Russia’s oil major Lukoil and Italy’s energy com-

pany ERG acquired a 70MW farm from Danish wind turbine maker Vestas.

The report states that the utilities sector, which includes the renewable industry, had a 36 percent share of the overall M&A market, estimated at EUR 1.2 billion, last year.

John Fitzpatrick, co-head of corporate, M&A and private equity in Romania at CMS Cameron McKenna, predicts big deals in the conventional energy sector.

The renewable sector has “slowed considerably”, but deals are still being struck.

“We could see sales of assets that have been built within the constraints of the scheme, so there are still things going on in renewables; it has not stopped completely,” Fitzpatrick told BR.Last year, the government deferred some certificates for renewable projects, in a bid to limit the impact of incentives

on the bills of both households and big industry. The missing certificates were to be recovered over 2017-2020. However, the bill was sent back to Parliament by President Basescu and should be up for debate this spring, according to market experts.

Authorities have also passed legislation cutting the incentives for new projects, to avoid overcompensation.

At present, solar producers receive one green certificate, out of the initial six stipulated in the renewable law.

Key sectors for M&A in 2014 The report predicts that the local M&A market will see modest growth this year, adding that “big ticket” deals are being pondered by some serious investors, who are biding their time and planning for the coming years.

Among the main sectors tipped to generate deal-making this year are energy, technology, agriculture and infrastructure.

Horea Popescu, partner, co-head of corporate, M&A and private equity in Romania, said a lot of smaller deals are being struck. He commented that most of the private equity activity in recent years has focused on exits from local companies.

Popescu added that Poland has become an important market for private equity because it is a strong financial hub and has political stability.

The overall M&A market in emerging Europe decreased by 19 percent last year to EUR 112 billion, accounting for 2,555 deals, out of which 148 were in Romania. ∫ Ovidiu Posirca

CONSUMPTION

Nielsen: 26 pct of Romanians have no money left after basic expenses

M

ore than a quarter of Romanians have no money remaining after meeting their basic expenses, according to a Q4 2013 Nielsen report, which also found that local consumers are mostly divided between two poles, a conservative and a more dynamic segment.

The last quarter of 2013 saw a decline in the intention to spend on all categories of products and services monitored by the most recent Nielsen global survey on consumer confidence, and Romania was no exception.

“At global, European and local level, consumers are in a constant process of learning how to prioritize expenses.

As a result, we can see, at a global level, a drop in the intention to spend on entertainment outside the home: to buy clothing (31 percent), holidays (32 percent) and invest in stocks and mutual funds (19 percent).

Meanwhile, in the countries we’ve investigated in our global study, we’ve observed that the intention to save (47 percent), spend on new technologies (24 percent) and on home improvements (20 percent) fell by 5 percentage points, reaching roughly the results posted at the end of 2012,” said Catalina Laschon, director of consumer research at Nielsen Romania.

The results of the local survey reveal the intention – adjusted to below EU average revenue levels – to spend less than the European average on entertainment outside the home (17 per-

How do Romanians spend their money after meeting basic expenses?

Romania* Paying off debts/credit card bills/loans Saving l New clothes l Home improvements/decorations l Out-of-home entertainment l Holidays l New technology products l Pension funds l Investment stocks/mutual funds l No money left after paying basic expenses l l

*out of 100 respondents Source: Nielsen cent vs. the European average of 23 percent) and vacations (16 percent vs.

27 percent). However, results in Romania are in line with the EU average when it comes to home improvements (19 percent vs. the European average of 20 percent) and new technologies (13 percent vs. 15 percent). “This reveals the two fundamental poles of our society at the present, namely more static, more conservative consumers and the more dynamic segment, which tends increasingly more towards modernity,” added Laschon.

Is consumption picking up, though?

The beginning of the year brought

30 26 23 19 17 16 13 4 1 26

EU average 25 33 30 20 23 27 15 6 4 22

highest annual growth rate in the EU after Luxembourg (+9.4 percent) and Poland (+6.7 percent).

The good results in December made possible a 0.5 percent increase in retail sales for the whole of 2013, according to the INS, and have even fueled hopes that 2014 will see a pick-up in consumption.

The fact that 2014 is an election year is another factor to consider. The government has already announced plans to implement a debt support scheme for individuals which should free up cash for consumption.

How much is there to spend?

One of the most important findings of the Nielsen report is that 26 percent of Romanians have no money left after meeting basic exsome encouraging news about con- penses. This was above the 22 percent sumption in the last month of 2013, EU level.

The total monthly revenues of the although Romanians generally spend average Romanian household amountmore during holidays.

Even so, total retail turnover (ve- ed to RON 2,528 (EUR 568) in the third hicles not included) was up 7.2 percent quarter of 2013, according to the most in December 2013 (gross series) month- recent data from the INS. Out of this, on-month and, more importantly, up 89.7 percent goes on expenses. by 6.7 percent year-on-year, according Most spending goes on consumption to data from the National Institute of (72.9 percent) and taxes (17.2 percent).

Statistics (INS). The increase was most- A whopping 40.9 percent is ly fuelled by higher sales of non-food spent on food and non-alcoholic drinks alone, according to national goods.

The data is confirmed by Eurostat, statistics.

In Romania, the Nielsen survey the EU’s statistics office, which found that the volume of retail trade was up was carried out in November 2013 on by 5.9 pct in Romania in December 502 respondents. ∫ Simona Bazavan 2013, year-on-year. This was the third

www.business-review.ro Business Review | February 10 - 16, 2014

NEWS 5

FINANCE

IMF backs controversial government measures to boost consumption A new scheme designed to help people struggling to pay back loans by cutting repayment rates, which would cost the taxpayer EUR 900 million, was announced last week by the government, as part of a wider program agreed with the IMF to kick start domestic consumption. Many business leaders have slammed the scheme.

Scheme comes under criticism from business community Representatives of the business community have expressed their concern regarding the scheme, which they say is inequitable and underlines the country’s fiscal chaos.

“The origin of the money is the problem. These are the money of tax payers, because those that are paying taxes also pay the bank installments of others. I do not know what they are aiming, probably some electoral alms,” said Radu Merica, president of the Romanian-German Chamber of Commerce, told news portal www.hotnews.ro. He underlined that the government should focus on creating jobs, which would also be beneficial for borrowers.

“Nowhere have I heard of something like this. I have never heard of governments aiming to create jobs, encourage investments, cap the banking commissions, through different laws and regulations, but I have never heard of a government take over the debts or pay part of the citizens’ debts. To be honest, I have not heard of such a measure, not even in the communist period,” he added.

Meanwhile, Florin Pogonaru, president of the Association of Romanian Businesspeople (AOAR), suggested the government should lower now social security contributions (CAS), to stimulate job creation.

“It is clear that there is no fiscal philosophy and, as a result, there is this chaos ruling in the Romanian fiscal framework. You need to know very clear what you want to protect - and I think

Courtesy of Agerpres

The prime minister, Victor Ponta, said the scheme for borrowers would bring individuals’ loan repayments down by as much as 50 percent or a maximum of RON 500 (EUR 112) for two consecutive years.

Individuals that enroll in the scheme, which would be optional, would receive tax credits on their income tax worth a maximum of RON 200 (EUR 44.83) for up to two years before returning to their regular repayment schedule. To be eligible, the borrower must earn less than RON 1,600 (EUR 360), the average wage nationally.

Individuals can talk to their banks about this debt relief option from April.

Delays on loan repayments under the scheme could not exceed 90 days.

Andrea Shaechter, head of the IMF mission in Romania

EUR 900 mln fresh funding generated by debt easing scheme we all want to protect jobs – and then the reduction of CAS becomes a priority.

You do not delay it. It is a question of being coherent in measures. Not implementing the CAS measure immediately reflects exactly the incoherence. On one hand, our objective is to create jobs, and on the other hand we leave labor taxation at some of the highest levels in Europe,” Pogonaru told hotnews.ro

Banks to shoulder recovery of domestic consumption, says PM PM Ponta said the scheme would lead to a “moderate, but significant growth in consumption”. Constantin Coman, country manager at Coface Romania, the credit insurer, says domestic consumption could grow by 1 percent this year as a result of the measure.

“Ideally these people will get a higher disposable income and we presume this money will return to the real economy, but we cannot estimate how much will do so because borrowers, due to low levels confidence, may opt to save the money,” Coman told BR. Bankers have remained quiet about the measure, and Coman says the gov-

ernment should have discussed it more with them. Representatives of lenders attended a meeting with central bank governor Mugur Isarescu to discuss the proposed scheme.

“In fact, what is being proposed is that banks will collect their money a little later, with a higher degree of security.

There is no certainty that in two years time, those that benefit from this tax credit will be able to pay, and if they do not banks will lengthen the loan deadline,” added Coman.

The country manager says the scheme can also be interpreted as a populist move because of the elections scheduled for this year (European Parliament elections in May and presidential elections in November).

The central bank governor has called the fiscal initiative an “easing” of debt servicing and hinted that it might contribute to a reduction of non-performing loans (NPLs), which reached 22 percent in November 2013. Isarescu called the scheme “the first step towards progressive taxation.”

“We believe such a scheme, provided that it works, is preferable to schemes we have seen in other countries such as the conversion at fixed prices of foreign currency loans, while leaving costs in the air to be paid by banks or others,” said the governor last week.

According to Florentina Cozmanca, senior economist at RBS, this scheme should temper or even reduce the level of non-performing loans (NPLs).

She added, “The increase in disposable income for borrowers participating in the scheme help improve consumption with positive effects on economic growth and on the state budget revenues, through higher incomes from VAT, excises and other taxes on consumption.”

Andrea Shaechter, head of the IMF mission in Romania, said last week the measure could ease pressure on some borrowers, whilst other might prefer to pay off their loans under the current conditions.

An important caveat is that individuals who sign up for the scheme will extend the maturity of their loans by two years, and the interest payment will not be lowered. Liviu Voinea, the delegate budget minister, said the overall budgetary cost of the scheme would run at around 0.1 percent of GDP. Pogonaru, of the AOAR, said the ini-

tiative was not fair, but could help the private sector through the increase in consumption, according to news portal www.hotnews.ro.

IMF vets new tax relief for companies The government has announced additional fiscal measures, which it claims will support job recovery and economic growth, such as a tax exemption for reinvested profits. AOAR representatives said this would add another EUR 1 billion to the economy.

Moreover, the authorities got the green light from international lenders for a state aid scheme for the private sector. Private companies that create at least 20 new jobs will receive partial support from the government for all related labor costs.

Officials say this paves the way for employers’ social security contribution to be cut by 5 percent, which was initially announced for July 2014.

The measures have been discussed with a joint commission of the IMF and the European Commission, the executive arm of the EU, which completed the first two review missions under a new loan deal last week. The country has an ongoing deal worth EUR 4 billion with the international institutions. The agreement is linked to reforms in major sectors, such as transport and healthcare.

Although the IMF said in a statement that most of the performance criteria were met in December, there has been limited progress in the arrears of stateowned companies.

“It is not the growth of arrears that is the most important, but the delay in reducing them. You have 240 state-owned companies and you cannot wait too long to restructure them,” said Schaechter, quoted by the daily Adevarul. She said the transport sector alone accounts for more than 50 percent of the stock of arrears.

The authorities have also agreed to impose an additional fuel excise of 7 eurocents from April for each liter of sold diesel and gasoline. Shaechter said this should not see Romania overshoot its 4 percent inflation target.

The IMF expects the local economy to grow by 2.2 percent this year, driven by higher domestic consumption and the higher absorption of EU funds. ∫ Ovidiu Posirca

www.business-review.eu Business Review | February 10 - 16, 2014

6 LEGAL

New criminal code limits under investigation debtors’ access to insolvency With the country’s new criminal code and criminal procedure code coming into force on February 1, experts say the impact on the insolvency law should be limited, despite the roll out of changes impacting debtors and the sale of assets. ∫ OVIDIU POSIRCA Vasile Godinca-Herlea, managing partner at Casa de Insolventa Transilvania (CITR), an insolvency administrator, says the changes brought by the criminal code are intended to expand the criteria by which debtors can be barred from proposing a reorganization plan in insolvency procedures.

Changes in the insolvency law “In cases where (e.n. the debtors) have been previously convicted of corruption offenses, tax evasion or money laundering, among other crimes, they will not have the right to propose a reorganization plan. In his way, it is not necessary for a debtor to be sentenced for the ban to apply,” the CITR

Vasile Godinca-Herlea, managing partner, CITR

partner told BR. Another change in the insolvency law clearly differentiates the legal treatment of an individual and the individuals representing him or her, who are administrators or associates.

Antoniu Obancia, partner at law firm Zamfirescu Racoti & Partners, says matters of criminal liability from insolvency law no. 85/2006 are fully included in the new criminal code.

“Aside from the legal procedure, the main change is that simple bankruptcy, fraudulent bankruptcy, abuse of trust by defrauding creditors, and mismanagement (the compounded version) by the judicial administrator/liquidator, are all conditioned by the plaintiff making and sustaining the initial complaint,” Obancia told BR. Under the new criminal procedure code, the deadline for making the ini-

tial complaint has been extended from two to three months from the date the plaintiff discovers the crime.

The Zamfirescu Racoti & Partners representative does not think the application of the new codes will impede insolvency procedures. In addition, withdrawal of the prior complaint opens the door for mediation, which can help the insolvent party avoid criminal liability.

“Creditors may see an additional chance to recover their receivables, the mediation of the civil side of the criminal trial, while debtors against whom, for instance, a criminal complaint has been made for fraudulent bankruptcy will have the guarantee that criminal proceedings will be stopped if the plaintiff is compensated,” explained Obancia.

The sale of assets belonging to a company under administration has

www.business-review.ro Business Review | February 10 - 16, 2014

Antoniu Obancia, partner, Zamfirescu Racoti & Partners

Stan Tirnoveanu, senior partner, Zamfirescu Racoti & Partners

also been changed.

“These goods had hitherto been sold condition free, and were a very strong instrument in the procedure, which ensured valuable assets reentered the normal economic circuit,” said the CITR representative.

He adds that now a buyer of goods that are under criminal seizure in a liquidation tender will receive the goods with the seizure noted in the land registry or electronic archive of real guarantees.

“The direct effect of this change is that, if the plaintiff’s civil action in the criminal trial is successful, and the special seizure in enforced, we believe that few buyers will be tempted to buy goods that will at some point be lost in the eventual seizure procedure started following the completion of the criminal trial,” explained Godinca-Herlea.

He says this may block the sale procedure or prolong it indefinitely, which may limit the creditor’s chances of recovering more from a receivable.

small share of companies had attempted this.

However, that code was thrown out by the Constitutional Court on the grounds that it would have applied to all ongoing procedures. In addition, broadcasters going insolvent would have been stripped of their licenses until a reorganization plan was passed.

“The draft bill proposed by the government contains changes from the version of the code approved though the emergency government ordinance regarding the unconstitutional aspects pointed out by the Constitutional Court,” Stan Tirnoveanu, senior partner at Zamfirescu Racoti & Partners, told BR. He says the Senate has the final say on the new code, after the Chamber of Deputies failed to analyze it in time.

The new insolvency code was designed to deter companies from going into administration, but experts say the code also makes it harder for a company to save itself through a reorganization plan.

Under the new insolvency code, the timeframe for implementing the reorganization plan has been shortened from three years to one. The US and UK do not have such deadlines, while France’s stands at ten years.

The new code, which has been backed by a EUR 336,000 loan from the World Bank was drawn up by a consortium comprising the professional services firm PwC Romania, law firms Stanescu, Milos, Dumitru & Asociatii (SMDA) and, D&B David & Baias and the West University in Timisoara.

They were assisted by Arin Octav Stanescu, president of the UNPIR (the National Union of Insolvency Practitioners in Romania) as key experts and by Ana-Irina Sarcane, partner at the insolvency company Five SPRL, as project leader.

New insolvency code under debate in Senate The government attempted last year to push through a new insolvency code, claiming this would have helped its efforts to combat tax evasion. Officials lamented that numerous companies had filed for insolvency to avoid paying taxes, although specialists argued that only a

“Normally, insolvency proceedings will not be hampered by applying the new codes” Antoniu Obancia, partner Zamfirescu Racoti & Partners

ovidiu.posirca@business-review.ro

LEGAL 7

www.business-review.eu Business Review | February 10 - 16, 2014

8 SOCHI OLYMPICS

All systems snow Romania will be represented by 24 athletes in eight competitions out of 15 at the 2014 Winter Olympic Games in Sochi, Russia, according to an official statement by the Romanian Olympics and Sports Committee (ROSC). The committee refused to be drawn on the odds of local athletes coming home with any medals, saying they would be very happy with top ten finishes.

Sochi 2014 Winter Games

Sochi, the Security Games: As three suicide bombings since October 15 have killed more than 30 people in the city of Volgograd, nearly 500 miles from Sochi, the resort has been turned into a fortress guarded by some 100,000 security and military personnel.

∫ OANA VASILIU Aiming high?

“A Romanian athlete making the top ten would be the equivalent of a medal for us, and a placement in the top 20 would also be a remarkable performance, given the state of winter sports in Romania,” said Ioan Dobrescu, secretary general of the ROSC. Romania has won just a single medal in the Winter Olympics to date, back in 1968, when athletes Ion Panturu and Nicolae Neagoe took bronze in the bobsleigh in Grenoble, France. But the country has a tradition in the competition, having missed only two Winter Olympics so far: the first Games, which took place in Chamonix, France, in 1924, and the 1960 Games in Squaw Valley, in the US. At the last Winter Olympics in Vancouver, Canada, in 2010, Romania’s best performance came from its biathlon team, Dana Plotogea, Eva Tofalvi, Mihaela Purdea and Reka Ferenc, who came tenth. “With a smaller and smaller selection base every year, the elite performance suffers”, Alina Alexoi, sports anchor for the public television TVR.

Financing Olympic athletes According to the ROSC, some of the

local athletes going to Sochi have benefited from sports scholarships financed

by Olympic Solidarity, a division of the Olympic Charter. Monthly, each beneficiary received USD 1,500, of which only USD 300 went directly to the athlete, with the rest spent on national and international accommodation and training, says Florin Ticu, general secretary of the Romanian Bobsleigh and Luge Federation. The athletes who were awarded scholarships are Ania Monica Germaine Caill, Florin Craciun and Nicolae Istrate, according to the official Sochi Olympics website. At international level, Olympic Solidarity put up USD 10 million for scholarships for Sochi 2014 athletes. Moreover, all Romanian athletes get an Olympics allowance, settled by national legislation.

The ROSC have as official sponsors Renault Romania and Alexandrion Foundation, while the insurer of the Romanian athletes is Groupama.

The insurance issued is for the entire Romanian delegation and covers athletes, officials, doctors and coaches. The underwriting of the policies takes into account several factors such as the risk of the sport discipline, the injuries history of the athletes, the age of the athletes, the period insured as well as the risks insured (which depend on the option of the policy’s beneficiary). Based

on these cumulative criteria, Groupama offered the group insurance as ROSC partner under a barter system, Georgiana Miron, marketing and communication director of Groupama, told BR. Renault gave all the Romanian athletes who made the podium of London 2012 Olympic Games cars, a gesture of recognition that will probably be repeated if local athletes win any medals in Sochi.

Training days Asked by BR where the local athletes have been training, Ticu replied that the summer-autumn preparation hap-

Cost of a professional winter sports kit Luge: EUR 5,000-6,000 Skeleton: EUR 6,000-6,500 Bob: EUR 30,000-100,000 Helmet: EUR 500 Aerodynamic chemise: EUR 300-400 Shoes: EUR 200-300 Gloves: EUR 50 With the largest delegation of Romanian athletes the bobsleigh, luge and skeleton contingents, BR asked Ticu to outline the costs of professional equipment.

pened in three locations, Poiana Brasov, Piatra Arsa in the Bucegi Mountains, and the Lia Manoliu complex in Bucharest, where they undertake general athletic preparation. In winter season, the bobsleigh, luge and skeleton athletes train on European artificial slopes. For Sochi 2014, the Romanian athletes trained in Lillehammer in Norway, Konigssee, Altenberg, and Winterberg in Germany and Innsbruck, Austria.

In an interview with Mediafax newswire, Dorin Velicu, who represents Romania at skeleton, said that the Sinaia slope was no longer available to practice the sport, and that training took place exclusively outside Romania, where is it difficult to train without financial support. In an attempt to help the athletes train, in summer 2012, a bobsleigh slope was built in Bucharest, but it can only be used for practicing the start of the event.

The Sochi website reports that figure skater Zoltan Kelemen trains in low season in Brasov, Miercurea Ciuc and Flims, Switzerland, and in the high season in Brasov and Miercurea Ciuc.

The international chapter The USD 51 billion event opened with a ceremony that was expected to include six locomotives, the troika from Nikolai Gogol’s Dead Souls, and Peter the Great

www.business-review.ro Business Review | February 10 - 16, 2014

SOCHI OLYMPICS 9 The white stuff

Sochi 2014 Winter Games

The Sochi airport cent of Olympic project investment is financed by credit from VEB, a Russian state development bank.

According to the official website, the Sochi 2014 marketing and licensing program has received support from leading international and Russian companies.

In total, revenues from the Sochi 2014 marketing program have exceeded USD 1.3 billion, three times more than the revenue generated from the Bid Book obligations. This is 1.5 times greater than the total earnings of the Vancouver Games Organizing Committee throughout its existence. On this criterion, the Sochi 2014 Organizing Committee is the most successful Winter Games Organizing Committee in the history of the Olympic movement, say officials.

Sochi stats l 15 venues l 2,500 athletes l 98 events l 80 nations are expected to

compete

l 25,000 volunteers l 5,000 souvenir items with the

Sochi 2014 logo

l USD 500 mln expected sales of

official Sochi 2014 products

l 4,500 official retail outlets

across Russia

l 3,000 media representatives l 6,000 television and radio

broadcasters

Sochi 2014 Winter Games

commanding five ships, according to journalist Joshua Yaffa in the Bloomberg Business Week Global Economics publication. He quoted Damon Lavelle, an architect from the British firm Populous who worked on early plans for the Fisht Olympic Stadium.

The same source reports that back in 2007, when Sochi was awarded the 2014 Winter Olympics, Russia’s president, Vladimir Putin, claimed that the event would cost only USD 12 billion.

Asked about the real bill, Dmitry Kozak, Russia’s deputy prime minister who is in charge of the Olympic preparations, said that only USD 6 billion had been used directly on the Olympics, with the rest having gone on infrastructure and regional development. Some 70 per-

In terms of snow, the Russians have prepared for the worst: they have been stockpiling snow since last year. Ahead of the Games, the international press voiced concerns that Sochi’s subtropical climate could cause difficulties with the volume and condition of the snow.

According to the Wall Street Journal, Russia brought in the latest snow-making equipment and hired an expert from Finland to help store and create excess snow if needed. The same publication notes how snow quality became a major issue during the 2010 Winter Olympics in Vancouver, where athletes complained about a shortage

of snow caused by warmer-than-normal weather conditions, leading officials to truck in and manufacture tons of extra powder.

Source: Sochi Olympics official website and Olympic movement official website

Olympic spending l Cost of the games: USD 51 bln l 52.000 miles of rail track: USD

8.7 bln l 177-km pipeline from Dzhugba

to Sochi: USD 973.5 mln (USD 5.5 million per km)

Source: Bloomberg Business Week

oana.vasiliu@business-review.ro

THE ROMANIAN LINE-UP AT SOCHI 2014

Courtesy of Renault Romania

Ania Monica Germaine Caill who is only 18 years old, is representing Romania in alpine skiing at the Winter Olympics with Alexandru George Barbu and Ioan Valeriu Achiriloaie. According to the official Sochi website, she changed allegiance from France to Romania in June 2012. Despite winning the French championships in her age category in 2011, Caill decided to compete for Romania due to the lack of opportunities on the French ski team for the 2014 Games. She was eligible thanks to her Romanian mother, who moved to France in 1992 to go to university.

For cross country skiing, Paul Constantin Pepene is hoping for a place on the Russian podium, having won the 30 km pursuit at the U-23 World Championships in January 2010.

Timea Sara, another cross country skier, was the first Romanian to secure a place in the international competition, on February 8. Florin Daniel Pripici completes the line-up.

At just 16 years old, ski jumper Sorin Iulian Pitea is the youngest Olympic participant. He is the second ski jumper to represent Romania in the Olympics, according to the newspaper Adevarul. The first was Virgil Neagoe, who finished in last place at

the Albertville Games in 1992. Pitea’s spot was assured by his 12th place finish in Sapporo’s Continental Cup. Romania’s biathletes are Cornel Dumitru Puchianu and Eva Tofalvi, Romania's flag bearer at the opening ceremony. She became the first local biathlete to take a place on the podium at a World Cup event when she finished second in the 15km individual event in Hochfilzen, Austria, in 2008. She later attained first place after the original winner, Russia's Albina Akhatova, was disqualified for doping. Figure skater Zoltan Kelemen is a seven-time Romanian national champion, according to the International Skating Union, coming 29th in the 2010 Games. Sports publication gsp.ro reports that he lost the sight in his right eye at age seven.

Doctors have advised him not to compete, as there is a chance he could lose the sight in his left eye as well. At the beginning of each season he has to sign a form declaring that he is competing “at his own risk”.

Eight athletes are contesting the bobsleigh, but so far Nicolae Istrate is the only one who has obtained a notable ranking, having come eighth at the world championship in 2011. The local press has written that the bob the competitors use is a “historical one”. Contacted by BR, Ticu denied the allegation, saying the bob to be used in Sochi is the one which earned Istrate his eighth position.

Dorin Dumitru Velicu and Maria Marinela Mazilu are flying the flag in the skeleton competition. Velicu told

Mediafax newswire that he missed two international training sessions in the run up to the Olympics, and will also be using a borrowed skeleton.

Mazilu, meanwhile, competed in Vancouver in 2010, and won a bronze medal at the 2012 World Youth Championships in Igls, Austria.

For the luge team, formed of Valentin Cretu, Alexandru Teodorescu, Nicolae Radu Sovaiala and Raluca Stramaturaru, expectations are high for a top ten place, according to the national press.

Eva Tofalvi

www.business-review.ro Business Review | February 10 - 16, 2014

10 SOCHI OLYMPICS

Business people Nikolai Beckers

Catalin Cretu

CEO, Romtelecom & Cosmote Romania

area manager, Romania & Croatia, Visa Europe

Sports practiced: I enjoy skiing and Sports practiced: A tennis player who playing tennis, but golf is my biggest practices three times a week, always passion. I have played it for more than early in the morning, Cretu says he takes 15 years. his sport very seriously, and doesn’t see The link between sport and business: I it as “a prologue to having a beer with believe that good business management the guys.” He admires Roger Federer is about a clear vision and courage. That “for the beauty of his game, his calm deis also the case for sport, and especially meanor regardless of what goes on on for golf: you need a well centered plan the court, the great variety of his game, and very few disruptive elements, such and his gracious way of accepting defeat as noise – which can be represented by or celebrating victory.” collateral circumstances. The secret in- The link between sport and business: gredient is courage, which makes the You have to work hard and long hours – difference between an amateur and a luck comes as an exception. You have professional player. Just like in business. to know yourself very well, you have to do your homework, have a plan and execute it. But don’t forget to improvise Gabriel Biris and be creative; you may win the other’s managing partner, Biris Goran respect more with your creativity than with your tenacity. Enjoy it, regardless of whether you’re winning or losing.

Every match needs to be very well prepared in advance. You need to know your strong and weak points very well and to have a well-established plan as to how you will compensate for these vulnerabilities. Similarly, you need to know as many things as possible about the person on the other side of the net.

Once a game plan is set, it needs to be followed through. Sometimes it is difficult to follow the plan, if it doesn’t return Sports practiced: I can’t really say that I immediate results. was a professional, but I took part in Winning is good but winning in a several amateur races, which I’m proud way that you like is even better. Unlike to have won, during my childhood. Now the game of tennis, business is not a I enjoy skiing with my family in winter zero-sum game, so it should be easier and mountain biking when the weather to do business, as one can find win-win is fine. I still participate in MTB races solutions. In tennis, someone has to for the joy of pedaling and spending lose the match. time in nature.

The link between sport and business: Mens sana in corpore sano, I would say. Bogdan Georgescu We need to exercise regularly in order channel account manager, to maintain a healthy body and mind Intel Romania and give our best every day, at the office Sports practiced: I’ve been doing difand at home. Going out in nature is a ferent kinds of sporting activities since great way to disconnect from daily ac- childhood, but in the last couple of years tivities and issues and to return to the I’ve been doing more fitness, running, office with batteries charged and a good basketball and boxing. I am also pasdose of positivity. sionate about squash, which I play for

fun with friends once or twice a week.

Last but not least, I like kendo, which is very good exercise both for the body and mind. In terms of winter sports, I like skiing and ice skating.

The link between sport and business: I believe business and sport are strongly connected as rules in sport can teach you good business discipline and vice versa, for instance in the way I deal with Intel’s clients from the distribution channel. Also, business and sport share some common values such as will, honesty, fair play, teamwork and determination in following your goal.

rowing. Besides having run an Ironman in Austria, van Groningen has also done more than 15 marathons, most recently the Bucharest International Marathon.

He has written on his personal blog that sport is an important part of his life, and urges more people to discover the benefits of exercise. The bank he runs is also one of the sponsors of the I’Velo project, a bike sharing program currently running in six cities around the country.

The link between sport and business: On the topic of what sports can teach people doing business, van Groningen outlines several things on his blog: the key to success is making small improvements; seeking feedback actively is important for future improvement, which is the goal, while winning is the side effect; a stronger member of a team should pull harder than the weaker members; a team needs team players; understand your strong and weak points; results are more rewarding if they are earned in an honest way; losing can teach you more than winning.

Cristian Herghelegiu CEO, Gecad Net

Steven van Groningen President of Raiffeisen Bank Romania

Sports practiced: The president and CEO of Raiffeisen Bank Romania has a strong sports background as a former Olympian. He took part in the 1984 Los Angeles Summer Olympics as a member of the Dutch men’s quadruple sculls team and also participated in two world championships. He is married to Valeria Racila, an Olympic Champion herself at the 1984 LA Olympics in the single sculls

Sports practiced: In 1986, I tried crosscountry skiing for the first time, as lessons were included in the military practice I did at high school. In 1995, I discovered alpine skiing, since when I haven’t tried anything else.

The link between sport and business: I believe sport can be a faithful mirror to participants, including through the perspective of the management style of the relevant sport. I personally like things that happen with a certain speed, with interesting dynamics, in business. I think I have a natural appetite for risk, for the new, for something that has a predictable risk of not going according to plan. I like untraveled paths; I like to do something that others before me haven’t yet done.

Vlad Ilicevici executive director, Anim`est Sports practiced: The list is quite impressive: I have enjoyed cycling since childhood, I played football for almost

www.business-review.ro Business Review | February 10 - 16, 2014

SOCHI OLYMPICS 11

talk doing sport is successful in team sports this demonstrates his/her ability to work with people, how comfortable he/she feels as a team player and also the understanding of the common goal, as well as the pleasure of taking part in the game.

Cristian Linaru brand manager, Burn

30 years, I swim, in school I played basketball for the local team, CSS Vointa Craiova, and I now jog since I discovered that it made me lose weight and stop smoking. I love to ski, and get a bit depressed every time the ski season ends.

The link between sport and business: For me, sports mean perfect relaxation.

No matter how stressed, pressured and tense I am, running makes me feel better.

In many other activities, reward and recognition depend on a lot of factors, some fair, others less so. However, when running, the equation is simple: the more you work rigorously and consistently, the better you become, times decrease and distances increase. It's the easiest thing in the world.

Victor Ioane managing director, CEE Salesianer Miettex

Ileana Tomescu managing director, BPN

Sports practiced: I started snowboarding when I took my job at Burn, in 2013.

First, it was from a need to better understand the community and to be part of it, but after several falls, it became a sport for the soul.

The link between sport and business: I consider myself a lucky businessperson, with the two worlds correlating with each other; the connection between the job and extreme sports is very close.

Generally speaking, there are lots of synergies between business and sport, such as strategic thinking, controlled risks being taken, effort and determination. On the other hand, sports balance office life while giving clarity; you can free yourself from negative energies, relax and become more efficient. When your hobby intersects with your professional life, it means that you are doing what you like. That is absolutely perfect.

Dorin Pena general manager, Cisco Romania Sports practiced: I played professional chess for ten years and I currently play tennis and ski, trying to avoid the crowded weekends in the winter season.

The link between sport and business: Sport is an excellent management school for both body and mind. Perseverance, ambition, surpassing your own limits, and the acceptance of losing and starting over again can be learned from sport.

Business isn’t friendly when it comes to spare time, which is why most managers take part in intensive sports to help them switch off. If a top manager

Sports practiced: I like playing football, table tennis, swimming and running. I also used to play handball in high school.

Also, I regularly go to the gym.

The link between sport and business: There are many things that can be named here, from endurance in your activity, to coordination with your peers. I would nominate, however, observation. If you want to improve, understand your colleagues, and help them and the team achieve, you have to observe very carefully different aspects of both sports and team activity. Through observation you can reach valuable conclusions and choose the right actions. now I’m working, now I’m having fun, now I’m training my mind, now I’m doing sports, this is my professional life, this is my personal life, etc. I believe that this segmental approach limits us and this is the reason we don’t achieve our maximum performance, which is only possible when you're complete. In addition, those who exercise regularly require discipline, which is always useful in business. Not to mention fair play.

Christophe Weller managing partner, COS

Sports practiced: I’ve skied since I was four years old and I enjoy this sport every winter. I believe skiing gives you the opportunity to empty your mind of everything but what you have to do at that moment.

The link between sport and business: I believe sport helps the mind to release the “inner noise”, concentrating the effort on a single, unrepeatable moment.

It’s great practice for any business, not only for management but also for our everyday life. Sport helps not only the body but also the mind; it balances the inner equilibrium and develops a healthy competitive spirit. All these factors help reduce stress and therefore assist in developing a balanced and fair management and business approach.

Vlad Tudor president, eMag Foundation Sports practiced: In terms of winter sports, I skied from the age of 5 until 30.

Then, I discovered snowboarding, which makes me feel more in touch with nature.

Also, I’ve practiced triathlon for 12 years now, which I started out of curiosity.

The link between sport and business: We are accustomed to understanding things in the Cartesian mode; we are addicted to categorizing our activities:

Sports practiced: I have skied since I was ten years old, and I’ve spent at least two weeks per year skiing for 35 years now.

The link between sport and business: Running a business and being an athlete have lots of similarities. To be successful, in both cases, you need to be ambitious, disciplined and goal oriented, and, above all, have confidence in yourself and resilience. Running a business is, like sport, a matter dealt with every day. You dedicate time to it every day, whether in thoughts or actions. It is a team effort in both cases, even for individual sports (athletes have personal coaches and support staff). You could do it alone but you would most likely lose your mind and health, and you would not perform as well as if you were surrounded by a strong team. oana.vasiliu@business-review.ro

www.business-review.eu Business Review | February 10 - 16, 2014

12 LINKS

Personal data in the public eye EU member states may reach an agreement on data protection reform before the end of the year, with data protection being among the top declared priorities of EU legislators. Meanwhile, the average European is still worried about how or where their personal information may be used behind their back. ∫ OTILIA HARAGA The value of European Union citizens’ data was EUR 315 billion in 2011 and has the potential to grow to nearly EUR 1 trillion in 2020, according to the Boston Consulting Group, quoted by EC officials. Data protection reform will help the Digital Single Market realize this potential. The benefits of simplification via this reform are estimated at EUR 2.3 billion per year.

Reform is also expected to bring consistency. While at present, a company processing data in the EU has to deal with 28 national laws, the Data Protection Regulation will be a single, Europewide law governing the field, says the EC. “Europe already has the highest level of data protection in the world. With the reform, (...) Europe has the chance to make these rules a global gold standard.

The rules will benefit citizens who want to be able to trust online services, and the small and medium-sized businesses looking at a single market of more than 500 million consumers as an untapped opportunity,” said Viviane Reding, VP and the EU's Justice Commissioner, ahead of International Data Privacy Day. However, the conclusions of the Special Eurobarometer 359: Attitudes on Data Protection and Electronic Identity in the European Union dated June 2011 are not so optimistic. It found that 74 percent of Europeans see disclosing personal information as an increasing part of modern life. By contrast, only 47 percent of Romanians believe that. Also, 47 percent of Romanians say the government is asking them for more and more personal information, as opposed to 64 percent of Europeans. Furthermore, 58 percent of Europeans believe there is no alternative than to disclose personal information if one wants to obtain products or services, as opposed to 33 percent of Romanians. Seven out of ten Europeans are concerned about the potential use that companies may make of the information they disclose. In Romania, 61 percent of Romanians are “to-

Personal data is becoming both a gold mine and a minefield for companies tally concerned” that companies holding information about them may sometimes use it for a different purpose than what it was collected for without informing them, 29 percent are “totally unconcerned”, while 10 percent of Romanians responded “don’t know”.

Adrian Porcescu, technical consultant & trainer at Kaspersky Lab, says that there are two ways to collect data. The first involves the owner’s consent or action – including the accessing, storage or transport of private data through platforms and applications that later use this information for other ends than those declared. This includes websites or phishing messages that convince users to divulge personal data on a PC or mobile, for example requiring the right to access personal data upon installation.

The second category is data collection methods that work without the owner’s action or consent. The data is collected via malware installed on devices and systems where data is stored, through which they are accessed and transmitted – either by exploiting software vulnerabilities caused by the lack of updates, or by social engineering or identifying access data (the username

Wi-Fi users’ behavior patterns l More than 50 percent of online users who connect to a public Wi-Fi net-

work do not take any safety measures

l 34 percent of internet users do not adopt any protective measures when

using a hotspot

l 17 percent of online users have carried out bank transactions or made

purchases using various Wi-Fi networks

l Only 15 percent of internet users have verified the scripting standard of

their point of access *Source: Kaspersky survey carried out by B2B International

and password), as they are not complex enough, or even the physical theft of devices where this data is stored and accessed. “Data you give away voluntarily means data disclosed on various internet pages. If we refer to data that is transmitted automatically, mobile applications would probably be suscepti-

– as cyber-criminals reset the login data – but also when money disappears from a bank account. Where users notice that one single account – for instance e-mail, or a social network account – has been hacked, the best thing is to make sure all the other accounts are protected by resetting all passwords and making them more complex,” he advises.

If a person smells a rat, they would be well-advised to file a complaint at the National Supervisory Authority for Personal Data Processing (www.dataprotection.ro), under Law 677/2001, recommends Manolea.

“The number of complaints filed at the authority, I believe, was around 800 last year,” Manolea tells BR. There is also the option to file actions under the Civil Code or the Criminal Code, he adds.

However, to avoid getting to that point, there are certain ‘golden rules’ for anyone who goes online.

“The most important step for internet users to protect their personal data is to be careful where and how they disclose them. The fact that a form appears on the screen does not mean you have to fill it in or you must give your data to anyone,” Manolea advises.

Still on the side of caution, Porcescu

Connecting safely to Wi-Fi l Install and run updated anti-virus software that may alert you to threats l Disable your sharing settings to avoid anyone hacking into your device l Acquire a VPN (virtual private network) that directs traffic through a se-

cure network

l Disable default connection to Wi-Fi hotspots on your mobile device l Use HTTPS Everywhere, a Firefox, Chrome, and Opera extension that

makes browsing more secure

l Turn on your Firewall l Use different passwords for different accounts

*Source: blog.laptopmag.com

ble to collecting personal data, including on the user’s location,” says Bogdan Manolea, executive director at the Association for Technology and Internet (ApTI) and founder of the blog http://legi-internet.ro/. “The most ’profitable’ is probably financial data or that which can bring an immediate financial gain – identification and card data. Depending on the case and the type of collected data, they can be used for mass advertising, petty fraud, identity theft, or even to steal the user’s money,” Manolea tells BR. Given the multiple ways in which data can be misused, it is often very difficult to identify on time that data has been compromised, explains Porcescu.

“One realizes one’s personal information has been compromised when one no longer has access to online accounts

recommends users constantly update the applications and OS on their devices and avoid installing applications from unsafe sources. They should keep their data in safe locations, encrypt them and avoid posting them in public places or on platforms where they can be viewed, accessed and copied by unauthorized parties. Furthermore, data should be transmitted via safe and encrypted communication channels.

“It is also very important to have a security solution installed, which includes technologies that are up to date with the evolution of the malware ecosystem.

Last but not least, avoid connecting to the internet via unsecure public connections and points of access,” warns Porcescu. otilia.haraga@business-review.ro

www.business-review.ro Business Review | February 10 - 16, 2014

13

FILM REVIEW

Jack Ryan: Shadow Recruit

CEO CORNER Tudor Trita, Managing Director of Archibus Solution Centers

The New Age of Sustainability

Russian about: Kenneth Branagh directs and stars in this Cold War-style thriller

DEBBIE STOWE Director: Kenneth Branagh Starring: Chris Pine, Kevin Costner, Kenneth Branagh, Keira Knightley On at: Cinema City Cotroceni, Cinema City Sun Plaza, Hollywood Multiplex, Movieplex Oh, those Russians. They’re always trying to bring Western civilization to its knees. Or at least they were, for the second half of the 20th century, before handing the baton to the Arabs. Hurray for history Hollywood-style, and its goto villains: Russians, Irish, Colombians – and super-spy Jack Ryan has taken on them all.

Ryan is back after more than a decade in this series reboot, with Chris Pine succeeding Harrison Ford (at 71, probably a bit old to go chasing after terrorists who’ve kidnapped his wife) and more latterly Ben Affleck as the spy, in this installment a CIA rookie on his first overseas deployment.

Classically handsome Pine has something of Matt Damon about him, and it’s not the only trace of Bourne in Kenneth Branagh’s movie, a meat-andpotatoes action thriller, competently dispatched but with few major surprises.

Branagh is in front of the camera as well as behind it, playing Ryan’s Russian antagonist Viktor Cheverin, a brutal, shady and hard-drinking businessman – no national stereotyping there then.

(Really, Kenneth Branagh? Are there no Russian actors you could have got?)

Anyway, Ryan is investigating Cheverin after discovering financial irregularities through his CIA-cover day job as a Wall Street analyst. And it turns out (spoiler alert) that those pesky Russians are con-

spiring to take down Wall Street itself!

(An aim that many in our post-credit crunch world might consider No Bad Thing…)

But Ryan and his handler Kevin Costner are having none of it, and hatch a daring plan to thwart the Russian cabal’s dastardly scheme and restore truth, justice and the American way. US-A! U-S-A! Can you stand the suspense of wondering whether they will be successful?

But it’s pointless to condemn actions thrillers of this kind for predictability, as the ultimate outcomes are almost always obvious – and in a franchise like this, based on Tom Clancy’s series of novels, even more so. More relevant criteria are the panache of the set pieces, any twists, and the stylishness of the cinematography.

Here, the movie broadly delivers. A director of Branagh’s caliber (with a background more in Shakespeare than in spooks) lends class to the fairly formulaic proceedings.

The plot makes you jump a couple of times, and it’s all smartly filmed, with the frenetic camerawork and grey European aesthetic that is so popular since Bourne. Implausibilities abound – would the CIA really let a lone newbie lead a major anti-terrorist operation, with the main help coming from his civilian doctor girlfriend (Keira Knightley) who happened to be kicking around at his hotel?

But we viewers want thrills and spills, not realism, from our spy flicks.

And Branagh, with his “leaving us so soon, Mr. Bond?” accent, provides a respectable helping of them with this solid, old-school espionage flick. debbie.stowe@business-review.ro

In the last two centuries, human society has gone through several major shifts which have generated unprecedented opportunities and brought tremendous challenges. The Industrial Revolution (1750-1850) gave us the brute force to change nature.

As a consequence, the population and average incomes began to exhibit unprecedented growth. In only two centuries the world's average income per capita increased over tenfold and the world's population increased six-fold.

In 1960, the microprocessor was invented – another boost to our power to change nature. For over 50 years Moore’s Law – computer power doubles every year – has proved to be true.

Since 1995 – when the internet became commercially available, making the world a global village – information has been available to anyone instantly.

That amplified our power to change the environment and increase our standards of living. Everybody is connected to the global information stream and can see how others live.

With a population exceeding 7 billion people and a growth rate of 75 million/year, demand for goods is increasing and the pace of innovation is at its peak. However, only 2 billion people live in countries with a high standard of living, with the other 5 billion dreaming of doing the same.

How to fulfill the increasing needs of the growing population on the long term, with limited resources and without jeopardizing the environment, is the next big challenge. We are on the verge of a significant change in consumer behavior from “what I want” to “what I need”. My sons already decided against buying a Christmas tree for environmental reasons. I expect new generations to develop environmental and social consciousness, acting in synchrony with nature rather than against it. I see this as the next evolutionary step of the human species.

Local communities are already less willing to accept the development of new industries or mining facilities that will impact their surroundings. New legislation is being enforced to limit pollution and preserve local ecosystems. Those trends will accelerate.

Solutions are at hand. In the built environment, responsible for 40 percent of energy consumption, CO2 emissions from energy use can be reduced by 29 percent at no net cost, according to the the World Business Council for Sustainable Development – Energy Efficiency in Buildings.

The new goal of CEOs will be to build resilient organizations able to learn, and adapt to and survive unforeseen changes. Profit growth will no longer be the main parameter to measure a CEO’s success. Financial indicators have to be weighed against social and environmental impact on the medium and long term. I expect that a “bad quarter” should no longer be avoided at all cost, but accepted as part of the evolution of business toward resilience. Shareholders’ reign will be challenged by an increasing number of stakeholders and, in the end, maybe this will lead to the avoidance of such events as the subprime mortgage crisis, which plunged the world economy into a deep recession.

There is no theoretical model to lead a CEO on the path of the new age of sustainability; new ideas have to emerge through practice and experience sharing. This is why I am happy to be part of the CEO Clubs Romania, a perfect place to discuss and learn fresh business perspectives.

www.business-review.eu Business Review | February 10 - 16, 2014

14 HUMAN RESOURCES

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 Jan Kotik

took the helm at BRD Sogelease, the financial leasing arm of BRD Groupe Societe Generale, at the end of 2013. With over 14 years of management experience in the banking sector, Kotik started working at Groupe Societe Generale in 2003.

Prior to coming to Romania, he was financial and operational executive director and member of the administration board at ESSOX, a consumer credit company in the Czech Republic controlled by Groupe Societe Generale. Kotik is a graduate of the Finance and Accounting Faculty at the Economy University in Prague.

He completed his studies at CES Lyon in France and also graduated from a business administration course at Harvard Business School in Boston.

Adrian Lupsan

has been appointed business development director of Romanian asset manager Certinvest. He will continue to work as vice-president of the Bucharest Stock Exchange (BSE).

Lupsan has worked in the financial sector for over 18 years and is one of the veterans of the local stock exchange. He has gained extensive experience on the BSE, moving from trader to deputy general director of a brokerage firm, and has also worked as project manager in the banking sector.

Narcis Horhoianu

is the new marketing director of Heineken Romania as of this month, the company has announced. He has worked for Procter & Gamble for the past 18 years, holding various positions in the marketing department.

His last position there was marketing director – brand operations leader. Between 2004 and 2011 Horhoianu was a member of the management team of the Interna-

tional Advertising Organization (IAA).

He is a graduate of the Polytechnic University in Bucharest.

Mihai Darie

is the new financial director at stateowned nuclear producer Nuclearelectrica, starting this month. He was recruited by Quest Advisors as part of a wider program overseeing the appointment of professional boards and managers in state companies. Darie has worked in finance for over 14 years, holding management positions in the private and public sector. He headed the restructuring and loan recovery department at Raiffeisen Bank and was economic director at the Property Fund. He is a graduate of the Faculty of Finance, Insurance Banks and Stock Exchanges at the Bucharest University of Economic Studies (ASE). Darie has an EMBA and is a member of ACCAUK, as well as a chartered financial analyst (CFA).

Dragos Ion

has been appointed financial director of Coca-Cola Hellenic Romania and Moldova. The announcement comes after Dan Timotin, who previously filled the position, was promoted to commercial finance director, at group level. Ion previously held the same position at Coca-Cola HBC Ireland and Northern Ireland. He joined the bottler in 2009 as financial controller in Nigeria. He graduated from the Academy of Economic Studies in Bucharest and is a Chartered Certified Accountant (FCCA). Four fifths of the company’s local management team is made up of Romanians, according to company data.

Monica Alexandru

has been appointed leasing manager at Sonae Sierra Romania. She will coordinate the leasing activities of the local shopping centers managed by

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

Sonae Sierra including the ParkLake shopping center being developed in Bucharest. Alexandru is a graduate of ASE Bucharest. Prior to joining Sonae Sierra, she worked as marketing & leasing manager for Caelum Development. She had held the same position in various real estate companies since 1999, accumulating 15 years of experience in leasing activities. As leasing manager, Alexandru will be responsible for establishing the tenant mix at ParkLake, as well as prospecting new potential tenants, and negotiating offers and lease contracts for managed centers such as River Plaza Mall.

Mihai Codreanu

has been promoted to marketing & graphic communications director on the Xerox management board. Previously, he acted as strategic alliances & services marketing manager. Codreanu joined Xerox in 2005, since when he has held various key national and regional positions in sales, service development, IT consultancy and marketing. In 2012, he was appointed technology sales operations manager at the level of CEE (Central and Eastern Europe), Israel, Turkey and the Baltic countries. Between 2010 and 2012, he was industry marketing manager for Central Europe, Israel & Turkey (CIT). He graduated from the Politehnica University in Bucharest’s Faculty of Mechanics Engineering.

Romania team in 1999 as system engineer and afterwards became national technical specialist between 2002 and 2004, technical support director between 2004 and 2008 and technical service director between 2008 and 2012. He graduated from the Politehnica University in Bucharest’s Faculty of Electronics and Telecommunications.

Francisca Lebrun

has been promoted to general market operations business director on the Xerox Romania management team. She will be leading the firm’s indirect sales operations for equipment and services through its network of strategic partners. Lebrun has 12 years of experience at Xerox Romania and has held various positions, such as logistics manager between 2000 and 2004, and regional logistics manager between 2004 and 2007. She later became customer service operations director. Lebrun is a graduate of the Politehnica University’s Faculty of Computers.

Mihai Guran

has been promoted to customer services operations director on the Xerox management board. He will be coordinating customer service operations, supervising post-sales services. He previously served as service partner director. Ghionaru joined the Xerox

has been appointed regional operations sales director by Bitdefender. He will be in charge of coordinating the company’s sales activity in Romania, the United States, Germany, Austria, Switzerland, Northern Europe, Great Britain, the Middle East and Spain. Guran has 19 years of experiences in sales of IT equipment and solutions rocesses management at IBM, Dell, HP and Romsys. He has led multicultural teams of more than 20 people, developing the network of sales via partners in Romania and other countries in South-Eastern Europe.

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

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

Radu Ghionaru