MALL CHANGE: FOOD AND FUN EDGE OUT HYPERMARKETS AS ANCHORS
March, 2019 / Volume 23, Issue 3
www.business-review.eu
6
FACEBOOK – 15 YEARS OF SHAPING THE DIGITAL INDUSTRY GAME
30
DIGI COMMUNICATIONS INVESTS NEARLY EUR 2.5 BLN IN THE LAST DECADE
36
BIGGER SCREEN: GOPO AWARDS, ROMANIA’S OSCARS, SET NEW RECORDS
44
19 PEOPLE
TO WATCH IN 2019
www.business-review.eu Business Review | March 2019
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi • Deputy Editor-in-Chief •
6 Mall change:food and fun edge out hypermarkets as anchors
COVER STORY
Praising the stars
A
ny company that operates in a highly competitive market, which describes the local economy right now, is only as good as its people. With this in mind, on the occasion of
the 14th Business Review Gala Awards – BR magazine’s flagship event that recognizes the outstanding achievements of the busi-
10 19 people to watch in 2019 DIGITAL ADVERTISING
ness community – we have chosen to dedicate a special cover story to the inspirational stories of 19 businesspeople to watch in 2019 – be it entrepreneurs or CEOs of large corporations. We hereby present to you the tales of 19 people and companies
30 Facebook – 15 years of chang-
who made a way of life from top performance last year. They have
ing the digital industry game
big plans for 2019 too, a year when Romanian entrepreneurs are preparing to face a much tougher business environment, as the economy approaches the end of a growth cycle, with potentially steeper costs, lower demand and greater uncertainty. In some sectors, businesses are already seeing signs of falling demand. The last manufacturing barometer released by the SNSPA, a university of political and administrative studies in Bucharest, showed weak activity in January for the second month in a row. And for coping with such a challenging local business environment and being innovative, they deserve their stories to be heard, too. Disruption and new technologies are forcing many industries to
TECHNOLOGY & BUSINESS 32 Murielle Lorilloux, CEO of Vodafone Romania: ”We hope to be able to invest more in technology and customer experience”
34 Serghei Bulac, CEO of Digi Communications: ”We invested nearly EUR 2.5 bln in the last decade”
adapt to the new climate and be increasingly innovative – the real estate sector in general, and retail segment in particular, among
CITY
them. Shopping centers are changing fast, trying to keep pace, and even if Romanian and European malls are not falling one by one like their American counterparts, they are having to invest heavily to adapt to the competition from e-commerce. All this and more in this month’s issue of Business Review. And we hope to see you at our awards ceremony!
44 Bigger screen: Gopo Awards, Romania’s Oscars, set new records
46 Cultural calendar FOUNDING EDITOR: Bill Avery EDITOR-IN-CHIEF: Ioana Erdei DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Anda Sebesi JOURNALISTS: Anca Alexe, Aurel Dragan, Romanita Oprea, Oana Vasiliu, Razvan Zamfir CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: George Darie, Mara Dragoiu EVENTS & MARKETING: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | March 2019
4 NEWS
WHO’S NEWS
Patrulescu told BR. According to him, there are
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro
two types of buildings that will main companies’ keen interest: new prime buildings with low vacancy rates, which will still be attractive for investors and can help the yield compression, and buildings that come with an added value angle. In Bucharest, 500,000 sqm of new office buildings is cur-
Ruxandra Bandila has been appointed by Deloitte Romania as director for marketing and business development. Her career path has taken her through various fields, from project management, marketing and business development to strategy and operations in different industries, and she now rejoins the professional services sector. Prior to joining Deloitte Romania, Bandila worked for CRH Romania, which acquired Lafarge Romania, first as strategy, development and supply chain director and then as chief operating officer.
page 5
rently under construction, and
Photo: Dreamstime
Livia Dumitrescu has joined Vodafone Romania as legal and external affairs director and member of the executive management team. Most recently, Dumitrescu worked at Banca Transilvania as compliance director for Bancpost, one of BT’s acquisitions. She also worked for OMV Petrom for more than six years, where she held several managerial roles. Dumitrescu is a Romanian and British national who holds professional qualifications in law and fraud investigations.
approximately 350,000 sqm of space will be delivered by the end of 2019.
The office buildings sector is also developing in other major university centers
Bucharest office market could hit double-digit vacancy rates this year By Razvan Zamfir
The most active developers in terms of deliveries will be the Portland Trust groups (63,000 sqm in Expo Business Park and Oregon Park), Vastint (62,000 sq ft in Business Garden and New Times Square), Globalworth (42,000 sqm in Renault Business Connected) and River Development (38,000 sqm in The Light and Sema Offices).
Bucharest’s office market might
International, demand on the
reach double-digit vacancy
market is affected by the strained
rates on some submarkets this
situation of the workforce. “The
also developing in other major
year, while new supply will be
market is practically relying
university centers, such as
around 350,000 sqm in 2019,
solely on new graduates; unem-
Timisoara, Cluj-Napoca, Brasov
around 60 percent of which has
ployment is very low. We are at a
and Iasi, where new buildings
already been pre-leased.
historically low point of the labor
with an area of approximately
force. That is why the new take-
130,000 sqm will be put into
up will plateau or maybe drop,”
use.
According to Mihai Patrulescu, chief economist at Colliers
The office buildings sector is
Uber expands to Iasi, fifth Romanian city
Photo: Dreamstime
By Sorin Melenciuc
Uber, the application which
service in Iasi, the fifth Roma-
connects riders with drivers, is
nian Uber city. Iasi has chosen
now available in Iasi, the biggest
Uber as much as Uber has chosen
city of Moldova. Iasi is the fifth
Iasi – thousands of people in
city in Romania where the app is
Iasi have opened the Uber app
available.
in the last six months. We want
“We are happy to launch our
to partner with authorities here
Uber made its entrance on the Romanian market back in 2015
www.business-review.eu Business Review | March 2019
NEWS 5
EURO 2020 sets first foot in Romania, seeks local volunteers Sergiu Oprescu has been named general manager of Alpha Bank’s international network. He will oversee the lender’s subsidiaries in four countries as well as its international branches. Oprescu joined Alpha Bank Romania in 1994 and held several senior positions before he was appointed executive president in 2007.
By Oana Vasiliu The forthcoming UEFA European Football Championship, Euro 2020, is being held across the continent for the first time in the competition’s 60-year history, with 12 host cities in all, Bucharest among them. Due to the high demands of the program, the Romanian Football Federation is looking for over 1,000 volunteers. With the tournament taking place in 12 countries, ticket demand is set to rise to 3 million.
Volunteer programme aims to gather the population across Europe
The first million tickets will be put up for sale by UEFA this
coming to Euro 2020 will enjoy
qualify, the Romanian national
June, a year before the tourna-
the holiday atmosphere around
team will play at least two
ment kicks off. Meanwhile, the
the tournament and come into
games in Bucharest. Through-
special interest in the competi-
contact with the ambience and
out the tournament there will
tion is reflected in an estimated
culture of host cities, each of
be a Fan Zone in Constitution
TV audience of 5 billion.
which will organize football
Square and Unirii Boulevard.
Each host city has an emblematic bridge, so the tournament’s symbol is a bridge that
festivals in specially arranged venues. Bucharest will host four Euro
According to the official website of UEFA, the objective of the UEFA EURO 2020
will connect football support-
2020 games, three in Group
volunteer programme is to
ers. Bucharest’s is Basarab
C and one quarter-final, with
integrate and gather the popu-
Bridge.
matches scheduled to be played
lation across Europe, as well as
at the National Arena on 14,
creating a legacy for the host
18, 22 and 29 June 2020. If they
countries.
As well as top-level sport, organizers hope supporters
to make the city less congested, reduce pollution as well as make it more tourist-friendly,” said Nicoleta Schroeder, head of Uber Romania. Uber was founded in 2009 in the USA and has been active on the Romanian market since February 2015, having started in Bucharest and expanded in 2016 to Cluj, Brasov and Timisoara. In 2017, Uber’s Romanian business increased by 56 percent to RON 7 million and its profit tripled to around RON 453,000.
Vladimir Aninoiu joined Deloitte Romania as director of the technology team within the management consulting practice. With a career spanning over two decades in management positions for Romania and other European areas, Aninoiu will lead a team of consultants specialized in technology, addressing current challenges specific to the fourth industrial revolution transformation.
Daniel Cateliu has been appointed by panEuropean logistics property investor-developer P3 as leasing and development manager in Romania, with responsibility for attracting new tenants for P3 Bucharest A1 park, the largest logistics park in Romania, as well as for P3 Bucharest NW Ring Road park, where the firm will build a new 80,000 sqm logistics park in the near future. Cateliu has a track record in real estate, having spent five years with CBRE Romania, where he was senior adviser in the industrial and land development departments.
www.business-review.eu Business Review | March 2019
6 REAL ESTATE
Mall change: food and fun edge out hypermarkets as anchors The real estate market is being forced to adapt to the advance of disruptive new technologies, and the main victim seems to be the retail segment. Shopping centers are changing fast, trying to keep pace, and even if Romanian malls (and European ones generally) are not falling one by one like their American counterparts, they are having to invest heavily to adapt to the competition from e-commerce. By Razvan Zamfir
AFI Cotroceni became de biggest Romanian mall with an area of 90,000 sqm
“
With the evolution of technology, the
brands). Also, the evolution of technol-
consultancy company. The obvious solution
concept of ‘experience transfer’ begins
ogy has led to the opening of a wide range
was to extend the retail center, expanding its
to grow in various retail business
of consumer options and identification of
attraction points. In this way, in many malls,
areas. Experience transfer captures consum-
things, brands, and locations with which
the real anchor ceased to be the hypermar-
ers’ expectations of finding innovation and
they resonate. A food court can no longer be
ket, its place being taken by entertainment
opportunities in an industry, also transferred
as simple and impersonal as eight years ago
and food court areas.
/ adapted to other areas. Example: if tech-
because visitors will no longer identify with
nology allowed the online fashion option,
it and will choose other options more suited
have shown us that a shopping center cannot
the same thing happened for a few years for
to their tastes and expectations,” says Corina
remain anchored in the fashion segment,
food retail (for supermarket / hypermarket
Stamate, center manager at JLL real estate
so in recent years we have also focused our
“The wishes and needs of our customers
www.business-review.eu Business Review | March May 2016 2019
COVER REALSTORY ESTATE14 7
• Approximately 40 percent of visitors to
efforts on developing the food & beverage
correctly identify the expectations of its visi-
(F&B) and entertainment segment, an essen-
tors / consumers. Expectations range from
a shopping center choose their destination
tial component for our business, for enhanc-
proximity shopping malls, destinations with
according to F&B options,
ing the experience of each visitor. That’s why,
more than 80,000 sqm GLAs, strip malls, etc.
in addition to the great fast-food players at
The share and traffic brought by different
dining area spends 15 percent more than the
AFI Cotroceni, we believe in unique con-
areas of the mall varies according to the par-
typical mall consumer,
cepts such as La Piatza (fast food, but with
ticularities of each country, but a very visible
extremely healthy, natural ingredients); Mag-
trend not only in fashion, but at European
spend about 35 percent more time at the
gie’s Ranch, which offers customers delicious
level, is where F&B and entertainment are
shopping center,
dishes in a Wild West decay setting; and Boss
important anchors in fashion and food retail,
Burgers, which sells mini-burger alternatives in multiple combinations to the classic American burger. Moreover, the F&B segment
in terms of traffic attraction,” said Stamate. According to her, the trend began just shy of five years ago worldwide, but in the last
• A regular F&B consumer focusing on the
• Consumers coming to the F&B area will
• Shopping within the center grows by about 25 percent if there is an attractive F&B area. At international level, a very clear exam-
is an area where we plan to invest in the long term, for expansion both in terms of surface and diversity. The same goes for the entertainment area: besides the Sensory Museum, which has been impressively successful, roller coaster, and ice rink, we always have new concepts that can make a shopping trip a complete experience,” says Costin Bilateanu, leasing manager at AFI Europe Romania. The strategy is simple. The food court attracts almost everyone, and a good offer will boost visitor numbers. The
three years it has grown. Last year saw some
ple of how important this trend is is the new
same is the case with the entertainment area
internationally visible trends in this industry
American Dream Meadowloands developed
and cinema, which are usually located away
in various business areas. The sectors most
by Triple Five Worldwide, whose mix is 55
from the main entrance to the mall, so you
affected were hospitality / hotels and shop-
percent entertainment and food court, and
have to walk through almost all of the mall
ping centers.
the retail area remains 45 percent. Other malls with a hefty proportion of
to reach it. And in time, maybe you will stop
Owners and architects are beginning to
and buy something from the stores you pass
rethink spaces or create new ones that aim to
food court and entertainment area in the
on the way.
unite the community within the city / sector,
total surface are NEPI Rockastle’s Shopping
becoming alternatives tailored to the social,
City Timisoara, with 11,000 sqm hypermar-
AFI COTROCENI, THE 90,000 SQM MALL WITH ALMOST A QUARTER FOOD COURT AND ENTERTAINMENT
technological and psychological demands of
ket and 11,500 sqm entertainment and food
consumers. As part of this trend, the owners
court, and City Park Constanta, also in NEPI
of shopping centers have started to look with
Rockastle portfolio, which has an 9,612 sqm
AFI Cotroceni, for example, a 90,000 sqm
great attention at the tenant mix, brands, and
hypermarket and an almost 6,500 sqm food
mall owned by AFI Europe, has an Auchan
the added value they can bring with retailers
court and entertainment area.
hypermarket of around 7,500 sqm, so less
to their company. Unique experiences and
than 10 percent of the area, while the food
a strong combination of entertainment and
industry and has emerged as a need to stay
court and entertainment area together make
F&B are becoming indispensable for a center.
within consumer socialization preferences.
up around 24 percent.
Old, traditional, international formats are no
In Romania, this trend can be observed in
”Proportionality is a novelty for the
longer performing well, and there is a trend
shopping centers such as Park Lake, Baneasa
6,000 sqm, with the works being finished
of focusing on fresh, new, innovative brands
Shopping City, and Promenada, which have
last year. “Depending on the type of mall /
capable of adapting to a new reality.
exploited the terrace area and turned it into
AFI Cotroceni was extended by around
shopping center, the anchors within them are
The trend at this moment is being felt
a city hot spot. Gradually, we will notice the
beginning to diversify as consumer behavior
keenly in Europe and will also grow in Roma-
owners’ tendency to reconvert certain spaces
changes in turn. At an international level, for
nia in the coming years. In Western Europe,
and transform them into a zone with unique,
a mall / shopping center, the most important
according to a JLL study in 2018, the follow-
diverse experiences adapted to the commu-
thing in this period of changing trends is to
ing trends can already be identified:
nity they are addressing,” predicts Stamate.
8 COVER STORY
www.business-review.eu Business Review | March 2019
19 PEOPLE TO WATCH IN 2019 Romanian entrepreneurs are preparing to face a much tougher business environment posing major challenges this year, as the economy approaches the end of a growth cycle, with potentially steeper costs, lower demand and greater uncertainty. By Sorin Melenciuc
www.business-review.eu Business Review | March 2019
COVER STORY 9
A
fter years of fast growth rates in most sectors, low financing costs and stable taxes, business leaders have entered a year full of uncertainties and headwinds. Business Review
presents the biggest challenges facing entrepreneurs and managers in Romania this year.
RISING FINANCING COSTS As in any other economy, rising costs are a major burden for entrepreneurs as they limit access to financing and raise the general costs of a business. During the last few years, financing costs have fallen following the decline of inflation rates and money market rates but the trend changed last year, when financing costs rose due to a sharp increase in inflation. Analysts forecast that the trend will continue this year. “Regarding the financial sector, we forecast the continuation of the trends of increasing financing costs and the depreciation of the national currency in the short term,” Andrei Radulescu, chief-economist at Banca Transilvania, predicts. And rising borrowing costs could hit Romanian companies even harder due to structural problems. According to a recent analysis, in a moderate scenario, one in three companies in Romania faces the risk of becoming insolvent due to rising borrowing costs.
NEW (OR HIGHER) TAXES One risk already materialized in Romania is higher taxes. Running out of revenue sources, the government introduced a 0.3 percent tax on bank assets on January 1. The tax is due quarterly – and at the value registered at end-2018, the sum would amount to RON 1.35 billion per quarter and RON 5.4 billion (EUR 1.14 billion) per annum. The government also imposed special taxes of 2 percent of turnover on energy firms and 3 percent on telecom companies, and capped the retail and corporate gas price at RON 68/Mwh. These measures will directly affect companies in those sectors but will also have an impact on the whole economy, experts say. The tax on assets is a significant cost for banks, which will certainly be transferred to customers via borrowing costs. Such an impact can be forecasted by analyzing what happened in Poland following the introduction of a 0.44 percent tax on assets in 2016. “The implementation of the tax (in Poland) led to an increase in net interest and fee incomes, to a slowdown in lending and asset growth rates, and to a deterioration of the main Polish banks’ profit,” Radulescu says. In energy, the new tax on turnover will also have a direct impact on the economy as a whole through higher prices for household and corporate customers – and this translates into steeper costs for entrepreneurs. The first price increase could come in March, according to the latest estimates. In telecom, the new tax translates into higher tariffs for mobile subscribers and a cut in investment – including a postponement in the 5G license agreement and network investment. “The ordinance (114/2018) affects us extremely badly and not just because we have to pay 3 percent of turnover, which hits our profitability, but because the tax applies also to the non-telecom revenues
www.business-review.eu Business Review | March 2019
10 COVER STORY
that we have, of tens of millions of euro, which is not too smart, and
is available on the market. Like inflation, the currency depreciation
is profoundly discriminatory,” the CEO of Telekom Romania, Miro-
is seen as a double-edged sword. Importers are hit by the RON’s
slav Majoros, recently said.
depreciation, but exporters benefit as they are protected by hard cur-
But the measures could also have damaging repercussions for
rency revenues. However, both factors are associated with stress and
other sectors in the economy. Banks and energy firms have already
uncertainty for entrepreneurs as they have to manage their business-
suggested a cut in investment this year due to the new taxes – and
es in a more volatile environment than in the past few years. In fact,
this means fewer contracts for entrepreneurs working on various
pundits say it is difficult to predict within a decent margin the scale
projects with banks, energy or telecom firms. But the hardest impact
of price increases or of the RON depreciation over the next year. At
is expected on the private pension funds. Many experts warn that
the beginning of this year, the Romanian currency lost 2 percent of
this sector, with assets of EUR 10 billion, risks being blown away by
its value against the European currency in one week, but since then
Emergency Ordinance 114/2018.
it has remained in a short volatility range.
“The vast majority of Pillar II private pension managers in Roma-
Analysts have been prudent in giving exchange rate forecasts
nia, if not all seven funds,
in this period of high
want to withdraw from
uncertainty – and entre-
Romania, or are seriously
preneurs are struggling to
considering it, because the
sketch budgets in a volatile
market conditions seem
environment.
particularly onerous – a big financial effort for a nonexistent gain,” the central
WEAKER DEMAND AND ECONOMIC SENTIMENT
bank’s chief-economist
However, analysts and
Valentin Lazea cautions.
managers alike agree on
The seven Pillar II pri-
one key point: demand is
vate pension managers in
flattening in Romania fol-
Romania have to increase
lowing a few years of high
their total capital by RON
growth rates.
1.6 billion by the end of
The weakness of the
June and by RON 3.55
economic growth in Ro-
billion by the end of this
mania is that much of it is
year, a very high sum for a
the product of a consumer
market with total assets of
bonanza, stimulated by
close to EUR 10 billion at
years of wage-led growth
the end of 2018. Contributors are also allowed to move their contributions from
government policy. This year, the government showed clear signs of running out
the Pillar II scheme to Pillar I (public pensions), but the ASF expects
of money to finance its wage-led policies. At the end of February,
very few Romanians to do so.
Romania still had no budget approved as the president refused to
However, the new regulation will generate for the seven fund
promulgate it due to suspicions of unconstitutionality. Without a
managers – NN, Allianz, Aegon, BCR, BRD, Generali and Metropoli-
budget, government expenses are capped – at 1/12 of last year’s total
tan – losses between RON 43.4 million, in the best-case scenario, and
budget per month – which allows to the government to better control
RON 50.4 million in the worst-case scenario.
its spending.
Beyond the direct impact on fund managers, the dismemberment
The government has also frozen pensions until September and
of the private pension scheme in Romania could harm many other
cut total remuneration in the health sector by capping combined
sectors like the stock exchange, an alternative funding option for
bonuses to 30 percent of the base wage – a clear sign that it is trying
many entrepreneurs.
to control wage and social spending this year.
INFLATION AND RON DEPRECIATION
demand. The last manufacturing barometer released by the SNSPA,
Economic common sense indicates that new or higher taxes and cost
a university of political and administrative studies in Bucharest,
increases will boost inflation, which might have a mixed impact on
showed weak activity in January for the second month in a row.
In some sectors, businesses are already seeing signs of lower
local businesses. Higher consumer prices may hit demand in certain sectors, a bur-
Another bad sign: costs are rising fast and employment is declining in this sector. “When the number of employees does not grow
den for many entrepreneurs. But inflation also creates a substitution
in real terms, it means that neither production nor tax revenues are
effect: some consumers affected by price increases tend to replace
likely to increase in the next period,” experts behind the barometer
more expensive goods with cheaper equivalents – if such an option
warn.
www.business-review.eu Business Review | March 2019
COVER STORY 11
Christophe Dridi: We are planning to expand the production capacity in Mioveni by 15 percent 2018 was a prosperous year for Dacia, in terms of production and sales. To keep up with demand and competition, the new CEO plans to increase the production capacity of the plant in Mioveni in the next two years and to focus on the robotization of manufacturing. By Ioana Erdei
I
n December, Renault
through an investment of EUR
named Dridi general man-
100 million by 2021. “The plant in Romania
ager of Automobile Dacia
and Groupe Renault Romania.
is working at its maximum
For the past two years, he has
capacity, which is why we
been the executive director
are planning to expand our
of the Dacia vehicle plant and
production by 15 percent over
a member of the company’s
the next two years,” Dridi told
management committee.
media. Daily Duster produc-
Dridi graduated from the Ecole
tion reaches 1,100 cars, out of a
Superieure des Sciences and
total production of 1,400 cars
Technologies de l’Ingenieur in
per day. Each production line
Nancy, France, and holds an
is at maximum capacity, he
MBA INSEAD degree. He began
added. The investment in the
his career at Renault in 1993
Mioveni plant will total EUR
as an engineer. In 2009, he be-
100 million, of which EUR 25
came manufacturing director of the Casablanca plant, and then moved to the same position at the Tangier plant, both in Morocco. According to him, the main characteristics that every leader
million will come from state aid. All production lines will be expanded, according to the official. Some 300 new employees will be hired in the next two years, he noted. This investment is part of his strategy to keep the Mioveni
should possess are: “a clear strategy; they should be capable of
plant as the gravity center of Dacia production. “The Dacia is sold in
motivating and having their teams grow, and be close to their teams
over 44 countries. But Romania is not the only country to produce
while actively listening to them,” he told Business Review in an in-
Dacia cars. There are 11 plants that produce cars under this brand.
terview. “From experience, I have noticed that the best ideas come
Romania is the origin country. In order to continue to be the gravity
from field teams. It is very important for a leader to listen, listen
center we need to strengthen the chain of global car access, from
carefully and make regular field visits. Reality is down there, and
design, to manufacturing, logistics and trade, and also to increase
not in presentations in the meeting room!”
our production capacity and attract new suppliers,” he commented.
The biggest challenge leaders
The new CEO of Dacia is also
face today is to be able to continu-
focusing on the robotization of
ously adapt. “Plus, spending too
manufacturing, which will reach
little time with their teams and
20 percent in 2021. “Right now,
not listening to them enough is
around 10 percent of the manufac-
one of the mistakes leaders make
turing is done through technol-
most frequently today,” said the
ogy,” he said. By 2021, production
Dacia CEO. His main immediate
will increase to 406,000 cars a
focus is to increase production
year.
capacity in the plant in Mioveni
www.business-review.eu Business Review | March 2019
12 COVER STORY
Focus on creating value and uniqueness With an increasing dynamic in its activity on the local scene, CBRE Romania focused on bringing to the market unique, value-adding and differentiating services last year.
L
By Anda Sebesi
ast year was a pro-
have won full mandates for
lific one for all CBRE
several clients, including the
Romania business lines,
Immofinanz office buildings
marked by a lot of challenges
of over 220,000 sqm and
both internally and externally,
Campus 6 of CA IMMO, while
from business integrations,
the dedicated team exceeded
personnel changes, additions
the 100 mark,” adds Moraru.
and promotions and new ser-
Elsewhere, CBRE Advisory and
vices added to its portfolio.
Transaction Services Romania
2018 also brought closer
provided consultancy services
regional collaboration, both
to 40 tenants from all business
inside the organization and
segments in 2018, identifying
outside of it, commencing with
the best solutions and creating
Luiza Moraru’s taking over as
the opportunity for these busi-
head of property management
nesses to grow. “In 2018, CBRE
department for the CEE region,
Advisory and Transaction Ser-
covering several countries
vices represented 24 percent
– Austria, Poland, Romania,
of the total market share in
Czech Republic, Slovakia and Hungary – and SEE. CBRE Romania also maintained its market leader position in the
Bucharest, making CBRE Romania market leader in this segment. Also, CBRE Romania has been the national leading retail agent for no less than three consecutive
year gone and for three years in a row has surpassed EUR 10 million
years with a total of 80,000 sqm leased through 308 closed deals by
in turnover, while its property management is the perfect proof of
the CBRE dedicated team,” says Moraru.
the company’s work and effort. “We achieved a new record of nearly
According to her, CBRE Romania invests in technology across all
700,000 sqm managed, almost double last year’s numbers and
its business lines and uses all its international know-how to develop
significantly larger than any other competitor in the market, making
the right tools for each type of building or topic. “An entire spectrum
CBRE the Romanian absolute market leader in this market segment.
of new CBRE tools are to be implemented in the properties that we
Moreover, our regional portfolio also grew substantially to nearly
manage in Romania and all the CEE countries, ranging from shop-
6 million sqm managed, a number unrivalled in the region, which
ping center apps, catchment area real-time analytics, performance
we believe is a sign of confidence and recognition of our service,”
analytics, building inspections, utilities and cost management,
says Moraru, MRICS, head of property management services CEE, at
community management, and portfolio management,” adds the
CBRE, retail and asset services.
representative of CBRE Romania. Last but not least, CBRE Romania
The shopping centers the company manages have been visited
is the first Romanian real estate consultant to have implemented
by 57 million people. “Last year
and used the Design and Build ser-
was a year of bringing to the
vice, which happened in 2018, for
market unique, value-adding and
example. “The way we intertwine
differentiating services: hospital-
our capabilities into our integrated
ity and customer experience for
‘end-to-end’ platform of complete
retail, community management
services completely changes the
for office and specialty leasing.
Romanian real estate business
2018 can be measured in numbers:
archetype and this is one of the
Property Management Romania
biggest goals that I’m driven by in
outgrew itself by 100 percent, we
2019,” concludes Moraru.
www.business-review.eu Business Review | March 2019
COVER STORY 13
Gruia Stoica: Romania’s entrepreneurial potential is enormous Grampet Group – Grup Feroviar Roman, the first Romanian multinational, is assuming a strategic, pole-position role to take the Romanian brand and entrepreneurial spirit abroad.
L
By Anda Sebesi
ast year marked the
“2019 is a milestone year
beginning of a new
for the European rail freight
development stage in
industry in view of market
Grampet Group’s history. The
liberalization this June. An-
company’s joining the Trans-
ticipating future challenges
Caspian International Trans-
and opportunities, we have
port Route has helped it reach
launched an extremely impor-
the objective Grampet Group
tant and complex digitaliza-
started with 20 years ago – to
tion project at group level. We
one day connect the Atlantic
also continue our investments
Ocean through the North Sea,
in upgrading and purchasing
to the Pacific, through the
rolling stock,” says the head
South China Sea.
of Grampet Group. He adds
“2018 has also brought us
that the company’s focus
public recognition as the first
is to capitalize on the huge
multinational in Romania. We
potential of container traffic
first stepped outside the coun-
between China and Europe
try in 2004, when we set up the Bulgarian Railway Company. In view
and organize the first container trains to and via Romania, with the
of our ambitious international expansion projects, we made strategic
support of the Trans-Caspian Middle Corridor members. “We are
changes in our management structure and launched a complex
open to diversifying our investment portfolio, especially in our core
consolidation process at group level,” says Gruia Stoica, president of
activities – rail freight. We are currently considering and prospect-
Grampet Group – Grup Feroviar Roman.
ing expansion on seven new markets in Europe,” he says.
Asked about the main achievements of his company last year,
All its business lines are building teams that fit the firm’s
Stoica says that Grampet Group became the first European company
entrepreneurial culture and are aligned to the requirements of a
to join the Trans-Caspian International Transport Route, a project
competitive business environment, a fair market economy and an
integrated into the New Silk Road initiative (One Road, One Belt), the
environment regulated by corporate governance practices. “Their
largest global infrastructure project in recent history. This step has
competence, perseverance and abilities have taken the Grampet
strategically positioned the company on the New Silk Road, final-
Group to its leadership position today,” says Stoica.
izing the construction of a new route, China to the European Union. “We launched operations in Serbia and became the first Romanian
According to him, the rail freight industry has a strategic role at global level, and Romania is geographically well positioned to
freight company with a license
substantially benefit from future
to operate in Greece. We are cur-
developments.
rently in the process of hiring key
Joining the Trans-Caspian
personnel – train engineers and
International Transport Route
mechanics,” says Stoica. As for the
was a major achievement for
numbers, the company completed
the Grampet Group, but also for
total investments of RON 120 mil-
Romania overall. This alliance
lion (about EUR 26 million) in its
may transform the country into a
core activities. In addition, Stoica
logistics platform for Europe and
invested in finishing the three
Asia, generating around 100,000
oncological production lines at the
new jobs and over EUR 1 billion in
Polisano Pharmaceuticals plant in
state budget contributions.
Sibiu.
www.business-review.eu Business Review | March 2019
14 COVER STORY
Investing in the quality of an office and retail portfolio 2018 was another successful year for Immofinanz. With a portfolio volume of EUR 4.3 billion, the company is one of the leading commercial real estate players in Europe concentrating on office and retail properties.
I
By Anda Sebesi
n Romania Immofinanz
international markets and we
has further strengthened
keep adapting to their needs,”
its position with its three
says Dinu. She adds that due to its
brands: myhive for offices, VIVO! for shopping centers and
leading position within its core
Stop Shop for retail parks.
region and its international
“Due to our clear brand
brand policy, its properties
policy as well as our focus on
have a high recognition
the needs and requirements of
value and its brands are a
our customers, we managed to
well-known promise regarding
maintain the occupancy rate
quality and service. “For in-
of our portfolio at a very solid
ternational retailers, our large
level of about 95 percent and
retail platform including 10
we gained a number of new
VIVO! shopping centers and 80
tenants as well as extensions of
Stop Shop retail parks in nine
existing contracts. Additional-
countries is of high interest.
ly, we are consistently pursuing
Additionally, as a stock-listed
our strategy of selling proper-
company which also has an
ties that no longer fit within
investment grade rating we
our core portfolio and sold several larger land plots which are suited
have a very solid financial position and very good access to capital
to residential development,” says Fulga Dinu, country manager
markets,” she says.
operation at Immofinanz Romania. Asked about the strategy for 2019, Dinu says the company is
In November last year, Immofinanz announced that it had purchased eight retail parks in Slovenia, Serbia and Croatia. The
focusing on continuing to invest in the quality of its office and retail
purchase price totals approximately EUR 90.5 million. The newly ac-
portfolio as well as in the offer for its tenants.
quired properties are fully rented and generate annual rental income
“The office property market is highly competitive and offices
of roughly EUR 7.2 million, which represents a gross return of 8.0
must serve more than their basic purpose, and today the myhive
percent. These transactions increase Immofinanz’s Stop Shop port-
concept is the best example I can give. The brand’s success relies
folio to over 567,000 sqm of rentable space and a carrying amount of
on its hotel-inspired design, the wide range of provided services
approximately EUR 800 million. Further acquisitions are currently
and the valuable community it creates among its tenants,” adds the
under evaluation, and two Stop Shops in Poland and Serbia are now
manager.
in the active development phase. With a portfolio that reaches more
At present, Immofinanz Ro-
than EUR 800 million, Romania
mania already has three myhive
is one of the company’s core mar-
buildings in Bucharest and plans
kets. “By continuously updating
to have more rebranded. “Regard-
to the market needs and trends,
ing its retail portfolio, Immofinanz
Immofinanz Romania is not only
has a strong presence on the
a valuable player on the market,
Romanian market, mostly repre-
but also a trend setter, considering
sented by the four VIVO! shopping
the modern and unique myhive
centers. We are closely monitoring
concept on the local market,” con-
consumer trends both on local and
cludes Dinu.
www.business-review.eu Business Review | March 2019
COVER STORY 15
Eyes wide open to future business opportunities Alexandru Lapusan is the CEO and co-founding partner of Zitec, whose mission is to help companies around the world innovate through digital transformation and automation, making use of emerging technology-based solutions and digital marketing services.
F
By Anda Sebesi
ounded 15 years ago,
for a volume of invoices with
the company now
a total value of up to EUR 20
counts over 160 team
million in 2019. 2018 was a challenging year
members, specialists in soft-
ware development and digital
both for Lapusan and Zitec,
marketing, working in two
given the tax changes impact-
offices in Romania: Bucharest
ing the IT sector in Romania.
and Brasov.
However, Zitec’s revenue went up 25 percent last year, to EUR
Zitec is also one of the main investors in the first Roma-
6 million, as the result of the
nian fintech platform – Instant
launch of Innovation Grants
Factoring – and in Zipongo, a
& Tenders, a new business
Silicon Valley-based company
line dedicated to helping its
in the health and nutrition in-
partners finance innovative
dustry, evaluated at over USD
projects and digital businesses.
100 million.
Throughout this business line projects with a total value
Instant Factoring, the first
of EUR 500,000 have been
Romanian online fintech platform for factoring, launched in April 2018, is a start-up co-founded
financed. Over the year, the Innovation Grants & Tenders team
by Zitec, functioning as an NBFI – non-banking financial institution.
managed to attract funds to finance six partnerships, including one
It offers a fintech solution that converts into cash any incoming
with the European Space Agency and one with the National Health
invoice with a pre-established value in less than 24 hours. It opens
Service in the UK, but also for its own products soon to be launched
the door for small entrepreneurs to have quick access to cash and
on the market.
differentiates itself through a very flexible and fast process made possible through the innovative technologies used. Instant Factoring closed the year with a volume of over 1,500
Moreover, in 2018, Zitec became a Google National Partner, both in cloud and digital marketing services, and sole partner in the Atelierul Digital project, dedicated to small and medium companies
fundings, totaling EUR 2.7 million. The average amount of funding
all over the country in need of digital consultancy. Zitec Digital
for an invoice was approximately EUR 2,100 and the rate of under-
Consultants are present in six hubs across Romania – Iasi, Con-
performance in relation to the current exposure was less than 1.5
stanta, Brasov, Bucharest, Timisoara and Cluj – and met over 7,000
percent at the end of 2018.
business owners in 2018. More than 50 percent of them reported
In November 2018, Instant Factoring received EUR 1.5 million from a US investment fund. The attracted funds, together with the company’s own capital, will sup-
business growth after implementing digital strategies based on the consultancy services offered by Zitec Digital. To Lapusan, freedom is the
port the expansion of its activity
most important personal value,
on the Romanian market, the di-
followed closely by family, while
versification of financial products
integrity, critical thinking, cour-
offered, as well as entry into new
age, authenticity and performance
markets in Central and Eastern
have the greatest impact on his
Europe. This will be done by de-
business thinking and the way he
veloping microfinance operations
leads his organization.
www.business-review.eu Business Review | March 2019
16 COVER STORY
Focus on sustainable and healthy organic growth For the past seven years, Ufuk Tandogan has been CEO and board member of Garanti Bank Romania, playing an important role in shaping a sustainable strategy for the bank.
H
By Anda Sebesi
e is also the chair-
to successfully deploy its busi-
man of the board of
ness strategy of developing its
directors of the two
client portfolio in a sustainable
non-banking financial institu-
manner. This strategy led to
tions within Garanti Group
obtaining a net profit, at Group
Romania: Garanti Leasing and
level, of over RON 140 million
Garanti Consumer Finance.
as of year end 2018. Moreover, Garanti Group posted an asset
Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB),
size of almost RON 12 billion at
Turkey’s second largest private
the end of 2018. In recent years Garanti
bank. The Spanish financial group Banco Bilbao Vizcaya
Bank and Garanti Leasing have
Argentaria (BBVA) is the major-
signed important agreements
ity shareholder of TGB. Present
with international financial
in Romania since 1998, the
organizations, such as the
bank offers a series of products
International Finance Corpora-
and services for all business
tion (IFC) and the European
segments: retail, SMEs, and
Investment Bank (EIB), aiming
corporate. Garanti Bank has
to facilitate the access of lo-
been the 10th biggest bank in
cal businesses to finance, in
the system in recent years, growing in this position organically. It has also been one of the pioneers of credit cards in Romania,
order to grow and make their contribution to the economy. Since Garanti Bank was the first bank in Romania to focus on the needs of
launching in 2007 Bonus Card, a unique credit card and one of the
women SMEs, a part of these loan agreements had a strong gender
most rewarding payment tools in the market, for both cardholders
component, being addressed to companies owned or managed by
and merchants. In 2010, the bank introduced WWF Bonus Card, the
women. On a different note, in 2018 Garanti Bank was nominated as
first eco-affiliate card in the country, through which it redirects 0.3
a Superbrand, distinguishing itself from over 1,500 brands analyzed
percent of the total value of transactions to the World Wide Fund
by Superbrands Romania.
for Nature (WWF Romania), thus giving clients the opportunity to
“We continue to have a long-term strategy in Romania, which
get involved in protecting local natural habitats, besides its own
can surely be regarded beyond the near future. Garanti Bank has
contribution.
been present here for over 20 years and, ever since the beginning,
As one of the most important digital players in the Romanian
we have targeted a healthy development of our market share. As
banking system, one of its main focuses in 2018 was the relaunch of
such, we will continue to diversify our products and services for all
the internet banking platform, Garanti Online, in an upgraded for-
market segments, depending on our clients’ permanently chang-
mat. As a recognition of the bank’s
ing needs, and we will be by their
good digital achievements, it was
side, as a trustworthy financial
awarded in 2018, by the world-re-
partner. Therefore, our focus
nowned magazine Global Finance,
will continue being on sustain-
as “Best Consumer Digital Bank
able growth and development,
in Romania”, this being the 11th
maximizing customer satisfaction,
award granted by this publication
and the digital upgrading of our
in the past ten years.
services,” says Ufuk Tandoğan,
In 2018 Garanti Bank continued
CEO of Garanti Bank Romania.
www.business-review.eu Business Review | March 2019
COVER STORY 17
Planning to develop his first project in Bucharest One of the most ambitious Romanian real estate developers is ready to reshape Bucharest in 2019, after building a national retail center network. By Ioana Erdei
Romanian retail center
I
citizens of Timisoara will also
developer. The Iasi-based
be able to enjoy the largest sus-
entrepreneur made a big deci-
pended park in Romania span-
sion in 2018 when he sold half
ning on over 55,000 sqm of
of his shares in the Iulius malls
green spaces, as well as 4,050
in Timisoara, Cluj-Napoca, Iasi
underground and multilevel
and Suceava and the adjacent
parking spaces. The project
office buildings to the South
will cover a total of 594,000
African company Atterbury Eu-
sqm and Iulius Mall Timisoara
rope for around EUR 200 mil-
will be integrated in it. The
lion, according to estimates by
tallest building in Romania, 155
Cushman&Wakefield Echinox.
meters high, will be built in the
In addition to this, the
ulian Dascalu is the biggest
project, along with a 55,000
This new capital was put
sqm park.
into an investment fund cre-
For 2019, the business-
ated with the South African company in order to invest in
man also wants to expand his
Openville, an integrated real
business in Bucharest for the
estate project in Timisoara, and
first time. Dascalu has bought,
the development of the international Iulius Mall brand. Per total, the Openville Timisoara project will include seven office
through a partner, a 10,535 sqm plot close to Romexpo, in the north of the city, where the developer Globe Trade Centre wanted to
buildings with a gross area adding up to over 130,000 sqm. Of these,
build a residential project before the global crisis hit. The transac-
18,000 sqm have already been delivered and fully leased, while
tion value is estimated at EUR 6 million. Dascalu has also signed an
another 13,000 sqm shall be completed this June.
agreement with Romexpo and bought some secondary expo build-
“The three new office buildings to be delivered within a 12 to 18 months’ term, along with UBC 2 (opened this January) and UBC 1
ings for EUR 3 million. Iulius Group owns a national retail network of four shopping
(pending completion this summer), constitute the first phase of de-
malls under the Iulius brand in Iasi, Timisoara, Cluj-Napoca and
velopment of the Openville project and will shape the main business
Suceava and the urbanistic residential project Palas Iasi. The group
center in the west of Romania,” said Iulian Dascalu, Iulius Group
has also developed 58,000 sqm of A class office buildings nation-
CEO.
wide, with another 15,000 sqm under construction. Iulius Holding,
Iulius Mall Timisoara will undergo expansion work for an additional 60,000 sqm of retail premises, thus adding up to a gross
the company that subsumes all the firms that manages and develops the real estate projects of Iulian Dascalu, recorded an income of
leasable area of 131,000 sqm,
RON 833 million in 2017, 330 times
which will turn it into the biggest
larger than the figure published in
mall in Romania. On this segment,
2016. Probably the huge figure is
Openville will include 430 stores,
the result of the relationship with
restaurants and themed cafés,
south african investment fund
multiplex cinema, a fresh market
Atterbury, who bought last year
area, the largest playground for
half of Iulius real estate network
children and other leisure oppor-
of projects in Iasi, Suceava, Cluj-
tunities.
Napoca and Timisoara.
www.business-review.eu Business Review | March 2019
18 COVER STORY
Christina Verchere, OMV Petrom: Investors need stability and predictability Romanian OMV Petrom faces major challenges in 2019 as the economic, fiscal and legal environment is changed by new or higher taxes, delaying major investments.
C
By Ioana Erdei
hristina Verchere has
the requisite conditions are
been the CEO and
met. “The Black Sea is a huge
president of OMV
opportunity for OMV Petrom
Petrom, the highest-value com-
and also for Romania. But, to
pany on the Romanian stock
be able to move forward, we
exchange, since January 2018.
require a liberalized gas mar-
Her mandate expires on 21 May
ket, fiscal stability and key in-
this year.
frastructure. It’s an important project and we wish to move
Verchere, 47, has had a 20year career in the oil industry
forward with it. This is why we
at companies including British
will continue to negotiate with
Petroleum, where she was
the authorities in order to find
regional president and CEO of
the best solution. Investors
BP Canada Energy Group. She
need stability and predictabil-
graduated from the University
ity. We need to know the value of the fiscal bill, and to be ac-
of Aberdeen in Scotland. In 2018, OMV Petrom Group recorded a net profit of RON 4.08 bil-
tive on a liberalized market,” said Verchere.
lion, up 64 percent from 2017, when it posted RON 2.49 billion, the result being helped by the upstream segment. The value of consolidated sales in 2018 was RON 22.52 billion, 16
BIGGEST DONATION IN ROMANIA In February, OMV Petrom announced that it would provide record
percent higher than in 2017 due to the increase in commodity prices
sponsorship of EUR 10 million to Asociatia Daruieste Viata’s project
and the volume of electricity sales, partly counterbalanced by lower
to build the first Pediatric Oncology and Radiotherapy hospital in
volumes of sales of natural gas and petroleum products.
Romania. The hospital is being built without any support from the
Downstream oil sales accounted for 76 percent of total sales, sales from downstream gas for 22 percent, and upstream about 2 percent. Investments worth RON 4.29 billion in 2018 were 44 percent higher
Romanian state, using only donations from civil society and the private sector. The construction cost is estimated at EUR 16 million, and equip-
than in 2017. These included mainly upstream investments of RON
ment will cost another 10 million. Besides OMV Petrom, over 1,700
3.15 billion in 2018 compared to RON 2.44 billion in 2017. Due to
companies and more than 250,000 individuals have donated a total
fiscal and legal instability, the CEO of the company faces tough deci-
of more than EUR 15 million. “I think this is the largest amount ever
sions in 2019.
donated in Romania. We hope that private companies won’t be the
For this year, OMV Petrom has already said it will reduce investments due to legislative instability. The firm announced RON 3.7 bil-
only ones to contribute in the future, but also the Romanian state,” said Oana Gheorghiu, one of the founders of Daruieste Viata. Of the
lion of investments in 2019, mainly
EUR 10 million donated by OMV
in the upstream segment. “Our
Petrom, half will be used to pur-
priority is to maximize the value
chase medical equipment needed
of our upstream portfolio and we
to diagnose and treat cancer in
intend to reduce hydrocarbon
children: a radiotherapy machine,
production by 5 percent compared
a CT machine and operating room
to 2018,” said the CEO.
equipment, as well as materi-
OMV Petrom has also an-
als required for training medical
nounced that its offshore invest-
personnel. The other EUR 5 million
ment project in partnership with
will be used for plumbing, electri-
Exxon is to be postponed until
cal and interior design works.
www.business-review.eu Business Review | March 2019
COVER STORY 19
Spreading the healthy spirit With a focus on national expansion and increasing the number of its active members, World Class Romania, the largest health and fitness network in Romania, has big plans for the year to come.
2
By Anda Sebesi
018 was a year
rate packages were
of growth for
up by by 42 percent,
World Class, as
continuing to grow
the company started
and reaching revenue
the #BeHealthy
of over EUR 860,000
Movement, a collec-
also in February,” says
tive expression of
Orrgren. According to
its new mission: to inspire, motivate and
him, the company’s
educate Romanians
strategy will remain
to be more active
the same in 2019,
more often in order
as the #BeHealthy
to enjoy a healthier,
Movement is growing
more fulfilled life.
significantly. “We will
The initiative took
continue to invest
place in Bucharest,
in expanding our
Cluj, Constanta and
network, refurbishing and renewing our
Timisoara during the #BeHealthy Festivals, attracting 10,000 participants. “We grew to
existing clubs. We kick started 2019 with yet another addition to our
almost 60,000 active World Class members, and 35 health & fitness
health & fitness network, the new World Class Tomis, which will be
clubs in strategic locations across Romania. We exceeded 1.5 million
the second in Constanta. For the summer of 2019 we have already
participants in our group fitness classes and reached a turnover of
opened subscriptions for the new World Class Record Park, our
EUR 28.5 million, 16 percent higher than 2017,” says Kent Orrgren,
fourth club in Cluj. Our strategy is to invest in prime Bucharest loca-
CEO at World Class Romania, about the company’s numbers. In 2017,
tions but also make investments in a second city with an objective to
World Class revenues rose by 34.7 percent versus 2016, reaching
become market leaders in that city,” says the head.
nearly EUR 25 million. He adds that in 2018 the company acquired two clubs from local
At present, World Class is the largest health and fitness network in Romania and, Orrgren says, this position comes with huge respon-
competitors and turned them into World Class Titan Park and World
sibility. “We have been using our voice to share our message about
Class Eroii Revolutiei and opened two new clubs World Class Bucha-
the importance of healthy living through health,” he comments.
rest Mall and World Class Veranda. “We also announced the opening
The company has developed two communication campaigns,
of the largest health and fitness center in Romania the World Class
#BeHealthy and #BeHealthyWithMe, in order to raise awareness of
Openville in Timisoara and World Class AFI Tech Park, World Class
the benefits being active and healthy and get more Romanians to
The Record Park in Cluj and World Class Expo Park in 2019,” adds the
join the #BeHealthy Movement.
CEO. The company continued its partnership with The Color Run
“Our investment in acquiring existing clubs and adding them to
and the Bucharest Marathon and relaunched the World Class mobile
our network, as well as opening brand new World Class clubs, was
app, to provide better and faster communication with its members.
a strategic investment in our main objective: to make health and
“Our personal training packages reached EUR 4.1 million in 2018, a 25 percent increase on the
fitness services accessible to more Romanians,” adds Orrgren. In order to communicate even
previous year, and more than EUR
better with the young generations,
3.3 million in evenue came from
World Class has also started its
personal training packages alone
#BeHealthy communication cam-
in 2017. In January 2019, corpo-
paigns in social media.
www.business-review.eu Business Review | March 2019
20 COVER STORY
UiPath, the Romanian unicorn, among ‘happiest companies’ in the world UiPath is the first Romanian company dubbed a “unicorn”, meaning a startup that has reached USD 1 billion in value, a tag it earned after it became the world leader in Robot Processing Automation (RPA).
T
By Aurel Dragan
he story of the com-
This was right after The For-
pany founded by Daniel
rester Wave: Robotic Process
Dines and partner
Automation, Q2 2018 report
Marius Tarca began in 2005
recognized UiPath as the leader
with a company named Desk-
of the worldwide market.
Over that changed its name to
In 2018, the company
UiPath in 2015. That year was
achieved over 5,000 percent
a turning point for the firm: it
growth compared to 2016
had found global partners for
and reached USD 200 million
Business Process Outsourc-
in annual recurring revenue
ing (BPO) and consultancy for
(ARR), which is a metric used
RPA. The first round of funding
by Software-as-a-Service (SaaS)
was received in the same year,
providers to reflect subscrip-
totaling USD 1.6 million from
tion revenues. In 2016, UiPath’s
three American investment
ARR was only USD 3.5 million,
funds, a round that took 14
but it rose to USD 150 million
months of negotiations and
in November 2018 and finished
was concluded in September, at Seedcamp Week in London. “We are quite a unique case as we work with enterprise software.
the year on USD 200 million. The company reached 800 employees in Romania and 1,700 globally in 2018 and managed to reach sixth place in the Comparably
Most of the companies that reach unicorn status come from the con-
2018 Culture Awards study in the “happiest companies” category,
sumer zone,” said Dines. The firm reached unicorn status in 2018, af-
outperforming big names such as LinkedIn, Facebook, Starbucks,
ter receiving financing of USD 153 million in a funding session led by
Red Bull and Adobe. “My dream was to build a company in which
Accel Growth Fund and supported by Kleiner Perkins Caufield Byers.
I want to work. I think the workplace should be the environment
At the time, UiPath could count about 200 large enterprises among
in which we develop, express our ideas, play and innovate. That’s
its customers, of which 30 percent were in the USA, 40 percent in
why we always make sure that employees at UiPath feel inspired,
Europe and the rest in Asia.
happy and involved, “says Dines. Recently, the firm opened a new
The company has grown rapidly in recent years: in 2017 it opened offices in Australia, France, Japan and Singapore and reached 400 employees. In Japan it has gained a strong foothold after opening
office in Cluj-Napoca, its second in Romania after its headquarters in Bucharest. It entered the Cluj market by acquiring the Smart Data AI platform from Recognos. Being magical creatures, uni-
the Tokyo-based UiPath K.K. The
corns are very rare. According to
RPA solution fits perfectly with
TechCrunch, there are currently
the Japanese business style and
279 private VC-backed start-ups
is suited to the country’s ageing
valued at over USD 1 billion. Last
population.
year, only 60 new start-ups were
UiPath’s valuation climbed
added to the unicorn club, fewer
to USD 3 billion in 2018 after it
than the 66 that had joined the
received USD 225 million in a
year before and way behind the
new funding round from Sequoia
record-setting 2015, which brought
Capital and Google CapitalG fund.
99 newcomers.
www.business-review.eu Business Review | March 2019
COVER STORY 21
Druid, the software developer taking on Artificial Intelligence Liviu Dragan is one of the pioneers of the Romanian IT industry. In 1994 he founded TotalSoft, a software developer that was sold in 2016, and he now has a new company, Druid, which is developing a virtual assistant, a chatbot. By Aurel Dragan
“
In 1994, a group
ers). The current share-
of software and
holders will reduce their
hardware experts
shares by offering a 15
founded a company, which
percent stake of the capital
in just a few years became
to some Druid employees
one of the largest Roma-
who will receive their
nian companies special-
shares for free, according
ized in software develop-
to statements made at the
ment and implementation
launch of the company. The investment in
systems: TotalSoft. The development of the com-
Druid started with EUR
pany was explosive, with
1.5 million, of which EUR
an increasing turnover
800,000 was already
from USD 100,000 in 1995,
drawn at the midway point
to more than EUR 26 mil-
of 2018. Druid, the software,
lion at the end of 2013,”
will use algorithms to
says Liviu Dragan.
analyze all existing busi-
TotalSoft and Charisma,
ness information in an
the name of the product, are brands that make a genuine business card for the Romanian
organization to provide a way of assisting in decision-making. It is a
industry in 46 countries across 4 continents. The company was
digital assistant that can be used both by employees and customers.
bought in 2016 by Logo Software Investment, the biggest indepen-
For example, employees will be able to find through the chatbot in-
dent software developer in Turkey, in a transaction worth over EUR
formation about their annual leave, find out when they will get paid,
30 million.
and trace their career development in the form of graphics. The
Dragan remained at the helm for one more year, but after leaving
platform will have available virtual assistants for customer support,
TotalSoft he didn’t retire. Instead he started a new company, Druid,
sales, technicians and the HR department, assistants scheduled to
an Artificial Intelligence software developer.
execute over 200 tasks. The first product will be provided to Banca
“In three years, I would like Druid to be the most beautiful story of artificial intelligence in this area of Europe. We’re aiming for a
Transilvania through a collaboration with UiPath. Last year, Dragan obtained a financing round for Druid from two
turnover of EUR 10 million over the next three years and high profit-
individuals, a transaction that included 15 percent of the shares and
ability,” he said last year.
evaluated the company at EUR 5 million.
In setting up Druid, Dragan worked with several Romanian
Druid also won two prizes at UiPath’s Forward EMEA event in
businesspeople, including Radu
London in October: second place
Enache, shareholder of the
in the Global Hackathon category
Continental hotel chain, Eugen
and the Best Connector award –
Banciu, founder of Farmexpert,
with its Chatbot-RPA Integration
who also owns the Dona pharmacy
project, which gave UiPath robots
network, and Anca Vlad, of the
conversational capabilities and
Fildas-Catena group (who has just
added cognitive services to Druid
sold her share to the other found-
chatbots.
www.business-review.eu Business Review | March 2019
22 COVER STORY
Victor Costache: My 2019 goal is to drastically cut death rates among Romanian children with heart disease 2018 was a record year for the renowned heart doctor Victor Costache. At the end of August, he led a team performing a unique surgery that saved the life of a 77-year-old patient given a 2 percent chance of survival. The Academy of World Records made note of the surgery held in Sibiu.
A
By Ioana Erdei
s he explained, this
cialized in heart and thoracic
kind of intervention
surgery and is a member of
helps prevent the
the French College of Heart
opening of the thoracic cavity,
Surgery.
which would have had more
He surprised everyone
complicated post-surgery ef-
when he decided to return to
fects for the patient. “I believe
Romania. “I was very moti-
that any medical problem has
vated to come back to this part
a solution, and your vision as a
of the country where heart sur-
doctor is influenced by the in-
gery was poor. I recreated a lot
formation and experience that
of specialties from scratch,” he
you amass,” said Costache,
outlined. “I am very demand-
head of cardiovascular surgery
ing with the people around me
at Polisano Hospital, in Sibiu.
and I struggle to find time for
He is one of the few Romanian doctors that chose to
my family and hobbies.” The doctor’s main goal
come back and practice in his
for 2019 is to start a quality
native country, after specializ-
national program for treat-
ing at top universities abroad, and practicing for ten years at leading
ing children’s heart diseases. “Around 1,000 children in Romania
hospitals in France, Denmark, Germany, the UK and Quebec. He has
die every year of heart disease. We are struggling to include the
worked with major figures in the field, such as Prof. Dr. Dominique
Polisano Hospital in Sibiu, which is the best equipped hospital for
Blin – the founder of the heart surgery department in France – Prof.
heart surgery in the country, in a national program for children. We
Dr. Phillipe Merloz, Prof. Dr. Jean Luc Magne, and Prof. Dr. Christian
have submitted several written pleas to the Ministry of Health and
Letoublon. In November 2018 President
we are in constant dialog with the authorities in order to make this
Klaus Iohannis decorated the
happen,” Costache told Business
brilliant surgeon with the Order of
Review. Such a program would
Merit, Rank of Knight.
allow all children with heart
Costache’s grandparents were surgeons and he says he spent most of his childhood in hospitals.
diseases access to high-quality publically-funded treatments. “In 2019, we also want to
He graduated from the University
attract additional funding for re-
of Medicine in Iasi in 1999 and
search into heart disease in Sibiu.
finished one year of residency in
In 2018 we attracted around EUR
Romania, then decided to move
3 million, through the Next Cardio
to France, where he started his
program,” he added.
residency from scratch. He spe-
www.business-review.eu Business Review | March 2019
COVER STORY 23
Dan Sucu: The goal for 2019 is to improve ourselves professionally With 2018 being one of its best years in terms of business expansion, Dan Sucu plans to open the biggest Mobexpert store in 2019 and expand the firm’s online sales.
M
By Ioana Erdei
obexpert Group had
growth in turnover in 2019. “We
a very good year in
keep our market share calculations
2018 both in terms of
to ourselves and we only calcu-
turnover and profitability, “even
late it in the cities where we have
though we were under major pres-
physical stores,” he stated.
sure when it came to expenses – all
The company is targeting
our costs had explosive growth:
building new stores in the big
utilities, salaries, loans, rents,” said
cities of Romania. “Cluj, Timiso-
Dan Sucu, the owner of the busi-
ara and Craiova are cities we are
ness, in a interview with Business
targeting at the moment. Unfor-
Review.
tunately, we’ve had to postpone
“Almost all of our activities
these moves due to the current
are profitable, and some are very
conditions in terms of land and
profitable – whether we’re talking
implementation costs, which are
about factories, retail, import
much bigger than we would have
or distribution – all of them are
liked them to be. They are still in
healthy again in terms of profit-
stand-by until we find an op-
ability, which was something we wanted to achieve and we are very happy about,” he revealed. The company posted growth of 15 percent last year, “which is
portunity that is truly attractive for us. Constanta will probably be postponed until March,” he said. “Compared to our initial estimations for new investments, costs are
extremely positive considering our turnover levels, but we don’t
at least 25 percent higher, even though our initial estimations were
expect 2019 to be of the same magnitude,” the entrepreneur said.
already larger than what we had been used to in the past.”
“We will continue to grow, but we must be aware that a large part of the recent growth has been based on the improved climate in terms
INTERNATIONAL EXPANSION
of purchasing power and the general increase in consumption.” Last
In the coming years, the businessman in interested in expanding
year, the company managed to double its logistics space and also
its empire abroad. “We are interested mostly in online expansion,
increase its online sales by 50 percent.
including on external markets. The online side is having explosive
“When there’s a growth of 5-6 percent in general consumption,
growth. By the end of next year, we’ll probably come close to an
we tend to double it. Since we don’t believe it’s possible for the mar-
average of 18 percent online sales. In some areas we’re already at
ket to grow again in 2019 by 6-8 percent, but we still target a 10 per-
20-30 percent,” he said. A new major investment in traditional retail
cent growth for ourselves, this growth must come from somewhere
on external markets is less interesting in terms of profitability. “We’d
else, and that means increasing market share,” he commented.
see better results in new countries on the online side,” noted Sucu.
The key for 2019, according to the entrepreneur, “is not going to be about linking ourselves to the general growth of the market, but
“We’re targeting countries in the region. We’re still evaluating whether we’ll enter these markets all at once or not. However,
about improving ourselves profes-
2019 and 2020 will be focused
sionally. The more experience
on strengthening our domestic
you have and the better you can
business. We expect to make the
do things compared to others, the
step towards other countries when
more you can grow.”
the share of online sales reaches 25-30 percent,” commented the
GAINING MARKET SHARE Sucu is hoping for a 10 percent
businessman.
www.business-review.eu Business Review | March 2019
24 COVER STORY
Marius Ursache – from digital advertising to innovating He should have been a successful plastic surgeon; however, at 17 he landed in media and advertising, and in recent years he has been a tech nomad.
I
By Romanita Oprea
n 1999, at only 22 years
of India, The New Yorker, BBC
old, Marius Ursache
and other outlets. Within 48
founded Grapefruit, one
hours, more than 3,000 people
of the top branding and digital agencies in Romania. In paral-
had registered on the website. But Ursache didn’t stop
lel, he studied design in New
here. Besides Eternime, he
York at the Sessions.edu and
launched Metabeta, a portfolio
later on with Milton Glaser at
management suite for startup
the School of Visual Arts, com-
accelerators and early-stage
munication and PR at SNSPA
investors. It streamlines deal-
Bucharest and digital as part
flow and diligence, tracks
of his European Masters in
company metrics and port-
Interactive Multimedia.
folio performance, increases
He has won an impres-
the engagement of mentors,
sive number of international
partners, and alumni, monitors
awards, including the Brand
OKRs, etc; and The Disciplined
Leadership Award at the World
Entrepreneurship Toolbox, an
Brand Congress 2009.
online tool for entrepreneurs,
For the last twenty years, Ursache has worked in
based on the Disciplined Entrepreneurship book and frame-
healthcare, design, marketing, fintech, innovation consulting and
work (by Bill Aulet) used by startups at MIT. It allows entrepreneurs
Artificial Intelligence. He has founded four companies and an NGO
to follow a clear process to validate their ideas, and also allows
pursuing these interests. The latest one, Eternime, is a pioneer in
investors to track the progress of the startups have they invested in.
digital immortality and creates digital replicas of people based on
Therefore, for the past five years, Ursache has been working with
their digital footprint. In January 2014 Ursache was one of the 120
accelerators, investors and startups. “It’s time somebody did some-
people accepted into MIT’s intensive program for entrepreneurs.
thing better to allow startups to access funding faster, and investors
“It seemed the best opportunity to take the crazy ‘Skype with the
find better startups. After trying to patch together some systems for
dead’ idea to the next level and get onboard with the mavericks that
accelerators, we decided to build a new investment set of tools – a
could bring this absurd thing closer to being real,” Ursache wrote on
smart one,” he said, of the launch of Metabeta. Now, the team is
medium.com, explaining how the idea of Eterni.me came to be.
split between Mexico, Romania and India. He spends two to three
After choosing the team, the idea came closer to reality when the
months per year in San Francisco/Silicon Valley, another two or
founders turned it from an app to
three other months with custom-
reconstruct a dead person’s mind
ers and the rest at the company
from a minuscule digital footprint,
headquarters in Iasi.
into a tool that you could use
“The product, the strategy, the
for the rest of your life to collect
vision might change, but with a
all your thoughts, stories and
good team you can build anything.
memories. Soon after the launch
My life goal is to build things that
of the website describing the idea,
can impact (for the better) the
the Boston Globe picked it up and
lives of millions of people. That is
wrote about it, followed by CNN,
value for me, not a billion dollars,”
FastCompany, Wired, NBC, Times
concluded Ursache.
www.business-review.eu Business Review | March 2019
COVER STORY 25
Anca Dragu: We will install 11 electric car charging stations in 2019 Anca Dragu was appointed deputy general manager of E.ON Group Romania last month. In 2016 she served as finance minister. She has also worked as chief economist at the IMF’s Romania office and as an advisor in the European Commission’s General Direction for Economic and Financial Affairs.
A
By Ioana Erdei
nca Dragu was appointed dep-
which will be dedicated to both house-
uty general manager of E.ON
hold and industrial clients – premium
Group Romania last month.
services at affordable costs in the shape
In 2016 she served as finance minister.
of a monthly subscription, with extra
She has also worked as chief economist
services included to provide extended
at the IMF’s Romania office and as an
eco-friendly mobility (charging equip-
advisor in the European Commission’s
ment such as boxes installed on walls
General Direction for Economic and
or lampposts, as well as non-stop
Financial Affairs.
installation, maintenance, support and
In her new role, her first in a private
monitoring services),” she added.
company, Dragu has ambitious plans,
Last year, the company focused on
including entering and having an im-
digitalization and new product devel-
pact on new markets such as electro-
opment.
mobility. “In 2019, I want E.ON Group
In December 2018, E.ON signed a
to focus on client and employee safety,
strategic partnership worth EUR 1.9
as well as on developing the best
million with Teraplast, which will
energy solutions. We want to continue
lead to the development of one of the
to invest in the upgrade of natural gas
biggest photovoltaic roof systems in
and electricity distribution networks,”
Romania.
she said. E.ON recently inaugurated a new
“On the gas segment, we’ve invested RON 235 million (EUR 50.4 million),
electric car charging station in Iasi, part of the 19-unit series it has
and upgraded 441 kilometers of natural gas pipelines and connec-
planned to install in its NEXT-E project, which uses European funds.
tions. The network was extended by approximately 125 kilometers.
“We already have four operational stations (two of which are in Iasi
Around RON 252 million (EUR 54.2 million) was invested in the elec-
county), but this fifth station has a special meaning, because we can
tricity segment, with over 1,300 kilometers of upgraded electrical
see it as a starting point for the future ‘electric motorway’ that will
lines (network and connections). We’ve made over 260 new connec-
link Moldova and Transylvania, namely the cities of Iasi and Targu
tions and expanded our electricity network by about 155 kilometers
Mures,” Dragu told Business Review. She added that the company
to connect new consumers,” Dragu stated.
is planning to install a total of 11 charging stations this year. “Therefore, E.ON will install a total 19 charging stations of the 40 to be
In 2017, E.ON Distributie Romania, the gas and energy distributor, has changed its name in Delgaz Grid, as part of a rebranding process
developed in Romania through
that included the creation and pro-
the NEXT-E project. The following
motion of a new visual identity.
21 stations will be installed by our
The name change took place
consortium partner MOL Roma-
according to the internal and com-
nia,” she said.
munity legislation that requires
The spotlight will also be
the energy sector companies to
placed on household custom-
do a clear separation, including at
ers through the launch of new
visual identity level, between the
products. “We’ve been working on
supply and distribution operations
a number of e-mobility products
to avoid any confusion.
www.business-review.eu Business Review | March 2019
26 COVER STORY
eMAG, the online retailer that has become a marketplace for over 10,000 sellers eMAG, the online retailer and marketplace, is the second unicorn grown in Romania. In December 2018, Naspers, its main shareholder, valuated it at USD 1 billion, a value reached after 17 years of existence.
e
By Aurel Dragan
MAG was started 18
sales event, now embraced
years ago, in 2001,
by most retailers. But it
a pioneer of the Ro-
also created a marketplace
manian online market. It
on its own platform where
has constantly invested in
any shop can register and
technology-based services
sell products. Over 10,000
developed in Romania to
publishers on eMAG
help customers save time
Marketplace account for
and money. Today it is
50 percent of the products
present also in Bulgaria,
sold through the platform.
Hungary and Poland,
The offer has reached 3.4
and with the help of its
million products. To help sellers achieve
foreign branches managed to record sales of almost
better results, two new
EUR 1 billion in 2017 (RON
services were launched
4.06 billion), while the
last year: eMAG Ads
estimates for 2018 are 20
(eMAG platform) and
percent higher.
eMAG Academy (webinars, trainings and conferences
“I knew from the beginning that eMAG could
to help designers improve
grow into something big.
their strategy and perfor-
Since I joined eMAG I’ve been telling people that I wanted it to be a
mance). In 2018, eMAG invested over EUR 120 million, including in
billion-dollar business. They said, ‘you’re crazy’! We have too many
a new logistics center. With a surface area of 126,000 sqm, as large
problems! We were losing clients, services were not great, but a few
as 20 football pitches, and a capacity of 2 million large and medium-
things were very good: Radu Apostolescu, who created the brand,
volume products, the new space is the largest warehouse in South-
was a visionary, as he built it to be customer-oriented. Bogdan Vlad,
East Europe.
another founder, the one who built the back-end technology, also
”In all these years I’ve learned that the most important thing in
had a visionary approach. To their visions I added my knowledge of
every relationship, including the one you have with your custom-
finance and leadership. The major growth is mainly due to the fund-
ers, is to keep all the promises you’ve made. Success comes when
ing that eMAG has received. We
people trust you, and that’s why
got USD 200 million from Naspers
every decision you make should
in exchange for a majority share
honor your customers’ trust. I’ve
package. You can do a lot of things
also learned that people like to
with this kind of money,” said
have a lot of choices, so it’s vital
Iulian Stanciu, CEO and minority
for your business to offer them a
shareholder of eMAG.
wide range of products, multiple
The company has been respon-
payment and delivery options, but
sible for many firsts in Romania
it should also be very simple for
over the years. The most famous
them to use all of these features,”
is Black Friday, the November
said Stanciu.
www.business-review.eu Business Review | March 2019
COVER STORY 27
Difficult, decisive year for Black Sea mega project Richard Tusker has been the lead country manager of Exxon for the past years. The company has been present in Romania’s upstream sector since November 2008, when it acquired an interest in the deepwater Neptun Deep block in the Black Sea, and has had an established downstream business since 1992.
D
By Ioana Erdei
uring
or industrial users.
2009-2010,
The move discour-
ExxonMobil’s
ages investments and
Romanian subsidiary,
increases the share
ExxonMobil Explora-
of imported natural
tion and Production
gas to 50 percent by
Romania Limited
2030 from 10 percent
(EMEPRL) acquired
currently, according
more than 3,000
to ROPEPCA, the asso-
square kilometers of
ciation that represents
3D seismic data over
energy companies in
Neptun Deep Block
Romania, including
using state of the art
Exxon. In July 2018, the
technology. In March 2012, Domino-1, the first deepwater well
company announced that the amount that
in Romania, located 170 kilometers offshore in water about 1,000
could be extracted from the Black Sea offshore site, Neptun Deep pe-
meters deep, confirmed the presence of natural gas. Further, in
rimeter, is 6.3 billion cubic meters per year. This amount of gas rep-
2013, EMEPRL completed a seven-month 3D seismic study covering
resents more than half of Romania’s current gas production, which
approximately 6,000 square kilometers in Neptun Deep Block — the
is about 11 billion cubic meters per year. In December 2018 a new tax
largest seismic program ever undertaken in Romania. In January
ordinance was issued by the government, postponing any further
2016, they successfully completed the most ambitious exploration
announcements regarding the start of exploitation of resources in
drilling campaign in the Romanian deep water sector of the Black
the Black Sea. Initially, ExxonMobil and OMV Petrom estimated that
Sea which included in total seven wells drilled with exemplary
they would make the final investment decision on the gas fields in
safety and environmental performance and fulfilling all minimum
the Neptun Deep block in the Black Sea in 2018. The analysis of the
work program obligations.
commercial viability of fields in in full swing and actual production
The past couple of years have been difficult in terms of legisla-
could begin in the next decade. So far, ExxonMobil (leader of the
tion. 2018 was a difficult and challenging year for the company as
consortium) and OMV Petrom have invested over USD 1.5 billion in
Parliament approved an offshore law that directly affects the com-
prospecting, drilling and data interpretation in the Black Sea block.
pany’s major investment in the Black Sea. Oil companies, including
Investments are high because drilling is executed in deep waters and
Exxon, have expressed concern
the cost of a deep water well is up
about the new offshore law, saying
to a hundred times higher than the
that it may discourage new invest-
cost of onshore drilling. This year,
ments in the Black Sea. Also, a
the company received a construc-
new ordinance issued in December
tion permit from the country’s
brought a new tax on assets for
energy ministry for an offshore gas
energy companies. The ordinance
project, but it said new taxes could
also caps the natural gas price at
make it hard to go ahead with the
RON 68 (EUR 14.6) per MWh for
development.
gas sold to Romanian residential
www.business-review.eu Business Review | March 2019
28 COVER STORY
High investments and focus on organic growth FAN Courier, the leader of the Romanian courier market, celebrated 20 years of activity in 2018, having reached a turnover of EUR 145 million and 6,150 employees. 2018 also saw its highest level of investment, EUR 27.5 million. By Aurel Dragan
T
he company founded
above this year’s results, which
21 years ago is still 100
will amount to about EUR
percent Romanian,
145 million. Investment plans
the shareholders being Felix
include continuing the de-
Patrascanu, Adrian Mihai and
velopment of hubs across the
Neculai Mihai. It has been the
country, which will lead to a 10
leader of the courier market
percent increase in headcount.
for the last 12 years, in a mar-
“We appreciate that the
ket worth EUR 500 million.
courier market is maintain-
The firm has made invest-
ing its growth trends, and
ments totaling EUR 135 million
e-commerce remains the main
over the years, while FAN
engine of our industry. Black
couriers have travelled as far
Friday, our biggest discount
as the distance between Earth
campaign, is constantly
and Mars, over 232 million km.
demonstrating Romanians’
In 2018, the most important investment made was the sort-
appetite for online shopping. This year, the campaign ex-
ing strip of the new hub in Stefanesti, near Bucharest, which accel-
ceeded the initial estimates, but we believe that, as far as our role in
erates the level of activity automation during a labor crisis that has
the supplier-client relationship chain, this year, we met the quality
affected the entire economy. “We are in a workforce crisis that has
standards we promised,” said Patrascanu.
also been caused by us, the companies. There were a lot of people
At the end of 2018, FAN Courier had over 6,150 employees, most
knocking on the door who wanted a job in the past and we thought
of them in Bucharest (46 percent of the total). Trying to compensate
it was always going to be like this. But the crisis taught us how to
for the lack of qualified workers, the company opened, last year,
treat people,” said Felix Patrascanu, CEO of FAN Courier.
FAN school. “We have finished the first pilot project for which more
In the first half of 2018, the company included in its fleet the first electric cargo-bike, intended for use in the exclusive pedestrian ar-
than 200 people have signed up, and the first trainee who completed the course and obtained a driving license has recently joined
eas of Bucharest and later in other
our team of couriers,” Patrascanu
major cities. It also introduced a
added.
smart ticketing application, de-
In order to make the job more
veloped in-house. The tools allow
popular, the company had a
customers to record notifications
campaign about what it means
or requests directly from SelfAWB,
to be a courier. Short films were
to make changes to the AWB (the
made named ‘Hard to Delivered’,
transport document) after picking
‘Sacrifice Couriers’ and ‘Delivery:
up the shipment, and change the
Impossible’. The campaign was
payee’s data, recipient’s phone
named ‘Courier in Action’ and
number etc.
includes an online game that has
For 2019, FAN Courier maintains its growth forecast, with estimates of reaching 15 percent
gathered 60,000 players in the one month.
www.business-review.eu Business Review | March 2019
COVER STORY 29
Focus on becoming a market leader Banca Transilvania is a success story of a Romanian-owned bank that has managed to successfully survive the crises over the years and become, in 2018, leader of the local market by the value of the assets.
S
By Aurel Dragan
ome 25 years ago, 46 entre-
Banca Transilvania Financial
preneurs founded Banca
Group’s assets reached RON 77.9
Transilvania. Today it is the
billion at the end of last year and
largest financial group in Romania
the loans and advances granted to
with over 31,000 shareholders, as
customers rose to RON 38.02 bil-
it is listed on the Bucharest Stock
lion. The group’s net consolidated
Exchange (BVB), with equity of
profit was RON 1.26 billion, out of
EUR 1.5 billion.
which Banca Transilvania record-
“With entrepreneurship in its
ed a bottom-line result of RON 1.22
DNA, through work, enthusiasm
billion, including the Bancpost
and investments in people, tech-
integration expenses. The bank’s
nology and infrastructure, BT has
operating profit rose to RON 1.8
grown from a team of 13 people to
billion due to the streamlining of
a financial group with over 10,000
activities and business consolida-
employees in 500 branches, in
tion. Customer deposits reached
over 180 cities spread across three
RON 65.16 billion, of which RON
countries. From the first customer
43.34 billion are individual depos-
to over 3 million customers, of
its and RON 21.82 billion corporate
whom 700,000 are borrowers.
deposits.
From the first transaction to over 2 million transactions that take place daily through the bank. From
BT Pay, the first wallet application in Romania, launched in January 2018, currently offers 12
the first business customer, to the creation of the largest supporting
different functionalities developed over a 10 month-period, as well
ecosystem for SMEs in Romania. During turning points, the bank has
as many nonstop cash and card management functions: contactless
reinvented itself, adapted to the context and moved on,” said Omer
payments, money transfer, monitoring and reports on card transac-
Tetik, CEO of Banca Transilvania.
tions, etc. The number of payments on mobile devices and the num-
For the lender, 2018 brought further responsible organic growth,
ber of money transfers between wallet users picked up by 35 percent
major investments in the customer digital experience, Bancpost’s
in Q4, 2018, compared to Q3, 2018, while the volume of transactions
integration and the outset for business model replication in Victo-
increased by 50 percent. Banca Transilvania has a 3.7 million-card
riabank, the Republic of Moldova. Besides the merger and integra-
portfolio, meaning a 21 percent market share in terms of cards issued
tion between Banca Transilvania
in Romania, of which 475,000 are
and Bancpost, BT Leasing merged
credit cards. Through the bank,
with ERB Leasing, a company
in 2018, 2 million transactions
purchased from Eurobank Group,
were performed on average every
along with Bancpost and ERB
day. The number of BT24 Internet
Retail Services. BT Direct and
Banking users exceeded 1 million,
ERB Retail Services, non-banking
up by 14 percent, and the number
institutions and consumer finance
of Mobile Banking users reached
companies, will merge in the first
560,000, up by 34 percent.
half of 2019.
www.business-review.eu Business Review | March 2019
30 DIGITAL ADVERTISING
Facebook – 15 years of changing the digital industry game With 2.3 billion active users worldwide, double the number in 2012, including 9.6 million in Romania, Facebook is celebrating 15 years of activity and changing the media landscape forever. Those users spend an average of 20 minutes on a session and come back eight times a day, bringing Facebook the biggest success of all the social networks and a 39 percent increase in profit in 2018, compared to the previous year. By Romanita Oprea
In 15 years Facebook succedeed in changing the face of the media landscape worldwide
O
In her turn, Elis Iaia Frunzeanu, head of
n February 4 2004, Mark Zucker-
head by Facebook, is the democratization of
berg, Mark Dustin Moskovitz, Chris
technology. “For better or worse, it has given
strategy at Publicis Romania, considers that
Hughes and Eduardo Saverin an-
unparalleled access to information to almost
Facebook has expanded agencies’ work. “We
nounced the creation of Facebook, then The-
everyone around the globe. We can easily say
didn’t have social media experts and social
facebook. As the platform’s success started
that Facebook has not only changed the digi-
media-driven campaigns before it. Although
to grow, Zuckerberg dropped out of Harvard
tal industry but, in many parts of the world,
we could have worked on platforms like Hi5
and moved to Palo Alto, California, to work
it has become the very face of the internet.
and MySpace. Today’s understanding of
on his creation full time. The digital world
An interesting effect that Facebook has had
digital communication is very much linked to
has changed drastically over the last 15 years,
on technology comes from the humongous
social media. And by social media, everyone
with the changes in technology coming hand
number of people that use it. Because of this
understands Facebook first. Because that’s
in hand with Facebook’s desire for novelty
huge number, an unprecedented amount of
where the big numbers are. Facebook was
and innovation. According to Flavian Cristea,
content, personal and business information
a game changer for advertising. It put social
digital strategist at Grapefruit, the biggest
has been created, distributed, exchanged,
media in the brand ecosystem and in the
merit of social media, an industry spear-
streamed and deleted,” said Cristea.
media mix. And its role has grown to the
www.business-review.eu Business Review | March May 2016 2019
DIGITAL COVER ADVERTISING STORY 14 31
point where some brands gave up on all other
made selling digital projects easier. “When
their trust in brands. “Facebook is important
channels and focused only on their Facebook
your clients are already part of the digital me-
in terms of reaching large audiences with
voice. A few even made their fortunes there,”
dium, interacting with various types of digital
the brand message. But it is no longer the
said Frunzeanu.
experiences, it’s way easier to help them
best platform for engagement – at least, not
relate to their potential digital consumers
for all demographics. Some segments have
raised consumers’ expectations in terms
and clients. Facebook and other big players
already moved elsewhere. If you want Gen Z,
of brand availability and content. Angry
have transformed the digital landscape from a
maybe Facebook is not enough and brands
consumers will go to Facebook first to make
geeky, niche, high-entry marketing opportu-
should consider the platforms where kids
a complaint and expect to speak to a real per-
nity into an easier, desirable and accessible
won’t bump into their parents – TikTok and
son who will fix the problem instantly. Others
experience for all,” said Cristea
Snapchat. If you want to engage Millennials,
Moreover, she added that Facebook has
want to be inspired, entertained or educated
But, as Publicis’s head of strategy points
Instagram is a more suitable platform. So it
by brands. Some want to get the news first.
out, many clients have unrealistically high
all depends on the objectives and the audi-
And some just want to be left alone, unless
expectations from Facebook these days. “And
ence. By forcing brands to put money behind
there is something really relevant and inter-
that is due to the glory days when Facebook
everything they post, Facebook is pushing
esting to be told. So, “brands must adapt. Not
was a free connection and engagement
for better content and smarter targeting. Less
only to consumers’ expectations, but also to
channel. Some clients still see Facebook as a
frequent, but smarter content should be the
the system, as Facebook is constantly chang-
loyalty platform or as a highly engaged brand
new norm,” said Frunzeanu.
ing its rules of engagement. Now brands de-
community.” But, it’s important to know and
And just as social networks are changing
liver more and better content than ever. And
understand that the social media landscape
in order to get closer to their fans’ desires and
Facebook algorithms had something to do
has changed. In 2019, Facebook remains the
expectations, so are the digital industry and
with that,” commented the Publicis Romania
most powerful social network for Romanians,
agencies. “I think the digital advertising in-
representative.
where 94 percent of urbanites have an ac-
dustry in Romania is made up of really smart
count, according to Romania’s Digital Market-
individuals who are waiting for a real business
CHANGING THE ENVIRONMENT AND THE CLIENTS
ing Report, compiled by the marketing reach
challenge to tackle, with an adequate budget
company iSense Solutions. Furthermore,
to match it. We played it safe for a very long
So how has it changed clients and their per-
79 percent said it was their favorite social
time, and made small investments in digital,
spective on digital in Romania? According to
network in 2019. And 9 out of 10 Romanians
but I think that it’s time to really invest in this
Cristea, the adoption of Facebook in Romania
are influenced by social media regarding
medium” concluded Cristea.
www.business-review.eu Business Review | March 2019
32 TECHNOLOGY
Murielle Lorilloux, CEO of Vodafone Romania: ‘We hope to be able to invest more in technology and customer experience’ Vodafone Romania recently organized a concert by rock band Vita de Vie, which marked a premiere in Romania: the first live hologram implemented with 5G technology, provided by the mobile operator. In a year when 5G is shaping the agenda for the local telecom industry, Murielle Lorilloux, CEO of Vodafone Romania, talks about the company’s preparations for the future 5G reality, and investing in innovation and digital transformation aimed at continuously raising the bar in network and service quality. By Aurel Dragan maintaining existing customers and gaining new ones is less and less about money and more about the value they obtain for the money they spend. We have a dedicated team of professionals in this area, whose job is to anticipate these needs while being fully compliant from a GDPR point of view. Digitalization is a continuous journey that covers several areas. At the offer portfolio level, we have launched several innovative products and multiplied digital sales by three. Our Shake app, for instance, aimed at under24s, is now among the four most downloaded applications. Another example is our Mystery Box concept, based on gamification. This is an invitation launched to our customers that encourages them to transform everyday challenges into a fun experience, a concept that has created a high level of engagement. We are talking about digital campaigns and digital
One of the most important projects of last year, which is ongoing, is the UPC Romania acquisition. How is the process taking place, and what stage has it reached?
consumers and businesses to benefit from
care. We have developed a new gamification
this change.
module in our My Vodafone App for prepaid service customers.
proval by the European Commission. Regard-
Convergence is one of your top three strategic priorities. What about big data and digitalization?
ing our convergence targets, one of our top
Our focus on big data and AI is an extended
business priorities, we are on track.
process taking place at the level of both our
Following the completion of the UPC integra-
teams and offer portfolio. We are using this
tion process, Vodafone Romania will be a fully
area to design personalized offers for our
Last year, Vodafone Romania insourced call-center services and announced a hiring process targeting up to 1,000 people. How many people have been attracted so far and how is the call center functioning now?
integrated telecommunications company. We
customers and, in this way, we have managed
We have concluded the insourcing process for
see this transformation as a future catalyst for
to increase the number of personalized offers
call centers, which involved over 700 people
further innovation in terms of both network
suggested to our customers from 7 to 10.
in Bucharest, Brasov, Craiova and Pitesti who
quality, following further investment in speed
We are continuously improving systems
were welcomed to the Vodafone Romania
and quality, and services, in terms of conver-
to process AI in order to better understand
team. Our belief is that customer service goes
gence, bundle configuration, access to content
customers’ needs and offer them products
beyond price and core support. It is about
across multiple platforms etc. We expect both
that fully respond to their demands. Today,
trust, quality interaction and reliability. We
The project is now subject to review and ap-
www.business-review.eu Business Review | March May 2016 2019
COVER TECHNOLOGY STORY 33 14
therefore decided to invest in order to bring
VR, games and IoT solutions. 5G is the new
whilst providing increased penetration. We
these teams back in house. This move trans-
enabler for many industries and gives compa-
have launched the first live NB-IoT network in
lates into a more dedicated customer support
nies the opportunity to review their business
Romania with countrywide coverage, which
and ultimately allows us to ensure that we
models and aspire to a better future.
consolidated our leadership position on IoT market solutions.
always achieve our objective of providing the best experience to our customers. At the same time, we are continuing an active
In what other technologies or innovations does Vodafone invest (AI, IoT, blockchain)?
recruitment process for our IT & digital areas.
We continue to invest in IoT. Vodafone has
Our teams are continuously transforming,
always been a partner for customers, helping
How has mobile data consumption evolved in recent years and how do you predict it will change after 5G implementation?
within a natural process designed to achieve
them succeed in a digital world by making
We have been witnessing a very fast increase
our key priority of digitalization. Our invest-
technology and innovation serve companies.
in data consumption and expect an exponen-
ments in the recruitment process and the
For instance, our IoT smart solutions help
tial evolution over the coming years.
right learning and development process for
retail companies succeed in their digital trans-
our people also aim to make a real difference
formation journey.
for our customers and communities. We are going through a Vodafone culture
Recently, we launched the first Smart Su-
5G technology will be the new enabler for many industries and for this exponential growth in data traffic consumption. It will
permarket concept in Romania. This compris-
offer businesses across various economic
change that involves the development of in-
es nine fully functional IoT retail solutions
fields the opportunity to review and improve
house programming teams. We are expanding
that help the retailer to identify customers’
their business models. We are supporting the
our teams of developers in order to be more
needs and understand their behavior in order
development of IoT services that will reshape
agile in responding to our clients’ needs.
to increase efficiency, customer satisfaction,
several sectors and build the success of busi-
and offer an improved shopping experience.
nesses from key fields. They will be critical
We plan to consolidate our position as employer brand leader in the industry by having
We can also mention our success in Nar-
for sectors such as automotive.
the best team able to execute our strategy,
rowBand-IoT, a wireless network technology
VR also creates a fantastic opportunity,
and continuing to attract the best talents and
specifically for connecting devices with low
another area that makes us say that the future
people with the right mindset.
bandwidth requirements, using low power
is already present.
5G licenses should be launched this year by ANCOM. How have you prepared Vodafone for 5G? Have you already made investments or launched test projects? We recently organized the first concert that integrated a live hologram made possible by 5G technology provided by Vodafone Romania. The protagonist of the live hologram sequence was a talented 10-year-old guitar player, who was participating in his first real performance in front of a large audience. This solution for his appearance at the concert, brought to life with our 5G technology, helped him fully connect with the public, despite his stage fright. We proved the future is already present. In the context of the upcoming license auction, investment in 5G will be about pricing and technology. We hope to be able to invest more in technology and customer experience. In terms of timeframe, the key debate will be how ready the whole ecosystem is for 5G, from the points of view of customer needs. We shall continue to invest in our network, in 4G technology. We see 5G as an enabler for a lot of data traffic. The advantages that this technology brings, especially the low latency, opens great perspectives for AI,
Global leader in IoT with 80.9 million connections Vodafone, the global leader in IoT with 80.9 million connections, has announced the findings of its latest IoT Barometer. Surveying 1,758 businesses worldwide, the Barometer finds that more than a third (34 percent) of businesses now use IoT and that 70 percent of these adopters have moved beyond the pilot stage, while 95 percent are seeing the benefits of investment in this technology as it moves into the mainstream. While use cases for IoT are varied, ranging from medical exoskeletons to connected tyres, the research has found that IoT impacts businesses regardless of size and sector. Sixty percent of businesses that use IoT agree that it has either completely disrupted their industry or will do so in the next five years. Eighty-four percent of adopters report growing confidence in IoT, with 83 percent enlarging the scale of deployments to take advantage of the full benefits. The most advanced companies have also seen the greatest return on investment in IoT. Eightyseven percent of those at the top level reported significant returns or benefits from IoT, compared to just 17 percent at the “beginner’s” level. These benefits breed increasing reliance on IoT. Seventy-six percent of adopters say IoT is mission-critical. Some are even finding it hard to imagine business without it — 8 percent of adopters say their “entire business depends on IoT”. In Romania, Vodafone has implemented IoT solutions for companies in areas such as retail, energy and utilities, automotive, transport and logistics. In 2018, the company launched the first live NB-IoT network in Romania with countrywide coverage, to let its enterprise customers develop and implement a wide range of solutions and applications to improve their business processes. Vodafone Romania provides IoT solutions for companies from various industries. Recently the operator launched cutting-edge solutions for retailers designed to accelerate their digital transformation journey with a direct impact on improving business efficiency and customer experience. Vodafone Business, the new brand philosophy for enterprise, reflects the operator’s role as a trustworthy partner to deliver business solutions and the best expertise for companies’ digital success. Vodafone Romania’s IoT smart solutions portfolio for retail includes a wide range of dedicated solutions, including Vodafone Smart Counting, Vodafone Digital Media Signage & Smart Analytics, Vodafone Heat Map, Vodafone Stock Alert, and Vodafone Queue Management.
www.business-review.eu Business Review | March 2019
34 BUSINESS
Serghei Bulgac, CEO of Digi Communications: ‘We invested nearly EUR 2.5 bln in the last decade’ 2018 turned out to be a positive year for Digi Communications, despite the turbulent environment. With revenues and profit up by 13 percent, the company stuck to its investment plan for the period. BR talked to CEO Serghei Bulgac about the business’s recent evolution and the company’s plans. By Aurel Dragan
How did turnover and profit fare in 2018? What estimates do you have for 2019? tations for both the financial and commer-
What is the value of investments in recent years? How much of the Romanian network is covered with fiber optics and what investments have been made in the 4G?
cial performance. The telecommunications
Over the past 11 years, we have invested
company’s consolidated revenues exceeded
nearly EUR 2.5 billion in the most revolution-
the threshold of EUR 1 billion last year, up by
ary technologies in electronic communica-
Your share price on the Bucharest Stock Exchange has been declining since your shares launched. What do you think is the reason for the negative trend? The bond issue of January 2019 was supplemented; how do you explain the success of the bonds while the stock price has dropped?
13.3 percent compared to the previous year,
tions, focusing in particular on increasing
The Digi Communications listing was received
which is a reason for pride for our teams in
the penetration of the fiber optic network in
with enthusiasm by the market, but the fur-
Romania, Hungary, Spain and Italy. Another
Romania and Hungary. In 2018, investments
ther development was less predictable, a situ-
key indicator for us and the telecommunica-
were up nearly 15 percent over 2017, reaching
ation that is too little related to the company’s
tions industry is EBITDA (operational profit),
EUR 280 million. The fiber optic network cur-
results and activity, although they rose.
which in our case grew by almost 13 percent
rently covers about 73 percent of households
Throughout 2018, the stock market evolution
to EUR 324.6 million. The good results come
in Romania and 47 percent of those in Hun-
of Digi shares was predictable if we look at
as our number of customers increased by 1.7
gary. Currently, in Romania, the DigiMobil 3G
what is happening in other capital markets in
million on the four markets where we oper-
network covers 99 percent of the population,
the region and in Europe and especially in our
ate, and reached almost 15 million at the end
while the 4G network has reached 61 percent.
industry. We would have liked to have had a
of last year. We want to keep our rhythm of
In Hungary we plan to launch mobile services
more stable economic and political environ-
growth in 2019.
this year.
ment, especially in recent months, to help
For the most part, 2018 confirmed our expec-
www.business-review.eu Business Review | March May 2016 2019
COVER BUSINESS STORY 35 14
capitalize better on the good results achieved
Last year we continued consolidating the
Therefore, our remuneration policy is also
at operational level. Legislative and political
Romanian market, maintaining our leader-
guided by the evolution of purchasing power
uncertainty has left its mark on the environ-
ship position on the fixed TV and internet
on the main market, Romania, with a focus
ment as a whole and has had repercussions,
cable segments, completing the acquisi-
on ensuring the right relationship between
including on the stock exchange.
tion of Invitel, in Hungary, launching fixed
the wage burden and rewarding employees’ efforts.
On the other hand, the company enjoys
services in Spain and the recent bonds issue
the confidence of investors in international
on international markets, that I have already
markets, and this is evidenced by the recent
mentioned, successfully completed and at-
bond issue, which attracted EUR 200 million,
tracting EUR 200 million from investors. The
Do you plan to participate in the 5G auction?
compared to EUR 125 million, the amount we
launch of mobile services in Hungary and the
Since December 2018, the economic and leg-
offered in the initial announcement. Digi has
continued expansion
islative environment
attracted more than EUR 1 billion through
of the fiber optic
has been marked by
bond issues on international markets since
network and the 4G
ever growing unpre-
2013. It is a success for a Romanian company,
network in Roma-
dictability. There are
as an entrepreneurial initiative, in a very
nia are two of the
still many unknowns
dynamic and competitive field.
major projects along
about the general
with the increase of
climate, both in Ro-
How is business going in the foreign markets where your company is present? What are the plans for these markets?
synergies between
mania and on the
the two countries
markets of interest
In Hungary, growth was supported by the
of frequency auctions.
and the preparation
for our company, and this makes it impossible to give a short answer. In fact, the whole market is in “wait
integration of Invitel, a local operator whose acquisition was completed last year. Revenue
internet segment, Digi had 470,000 subscrib-
How is the company handling employee retention during this time when labor is limited? What is the average salary within the company and what benefits are offered to employees?
ers at the end of 2017 and it reached 700,000
Fortunately, the company has a very good
generating units (RGUs or subscribers) for the Digi branch (including Invitel) increased from 500,000 subscribers to 700,000. In the fixed
and see” mode, as are we.
A glance over last year’s financial results shows that mobile communications represents about a third of total revenue. In the future will you focus on expanding these services? What are your plans for fixed internet and cable / satellite TV?
RGUs on December
retention rate, and
31, 2018. In the
its human resource
landline segment,
needs are mainly
the number of users
provided by internal
tronic communications show an increase in
almost doubled,
company mobility.
the public appetite for mobile services and
reaching 700,000
The salary level
Recent developments in the field of elec-
high-speed connections, which allow access
subscribers from
is in line with the
to complex content. We expect our audience
379,000 a year ago.
industry as a whole,
to be on the same path, and consequently in-
with small varia-
vestment and development projects will take
tions based on field
into account the convergence of services and
Spain and Italy also had four growth quarters, registering around 1.5 million sub-
specialization, seniority and experience. In
the growing need for high-speed internet and
scribers by the end of 2018, up 36 percent on
2018, according to the National Statistics
unlimited connectivity. As our slogan says,
the previous year. Digi Spain has positioned
Institute, the average net salary on the tele-
we are “unlimited” to customer aspirations
itself as the market leader for MVNOs (virtual
communication market ranged between RON
and our plans will follow their needs.
mobile phone operators) over the past year.
2,800 and RON 6,000 net for an engineer. Sal-
The last month of the third quarter also
aries within the group fall within this range,
marked the launch of fixed services on the
with the differences mentioned above and
What is the company’s position on OUG 114/2018?
Spanish market. For the time being, in these
the fact that remuneration differs according
We maintain our position from January on
markets, the main objective is to continue to
to position and post.
these tax measures. Government Emergency
grow, both inside and outside the Romanian
Our pay policy is prudent, deriving from
communities, and to achieve a robust reputa-
the company’s strategy – accelerated growth,
development of Romania’s electronic com-
tion for newly launched services.
top quality services at the most affordable
munications and energy sector, as the tax
prices, tailored to customer purchasing pow-
burden on operations in these sectors signifi-
er, service-driven convergence, proprietary
cantly increases without proper consultation
content, and value-for-money complemen-
and without any serious justification, thus re-
tarity of electronic communications services.
stricting investment and affecting customers.
What projects did the company launch last year and what are the projects selected for this year?
Ordinance 114/2018 is unfavorable to the
www.business-review.eu Business Review | March 2019
36 BR AWARDS
Business Review Awards – praising the stars of the Romanian economy Over 120 nominees and 46 finalists will be competing in 14 categories at this year’s Business Review Awards, BR magazine’s flagship event that recognizes the outstanding achievements of the business community. By Anda Sebesi
Ilinca Paun
Florian Nitu
Oana Gheorghiu
Carmen Uscatu
Serban Roman
Dragos Gheban
Franz Weiler
Cristian Nacu
Dan Balotescu
Horatiu Florescu
T
Dragos Tuta
hese are the main figures from the 14th year of our competi-
Leader of the Year category into two subcategories: Best CEO of SMEs
tion, which celebrates the most dynamic entrepreneurs, execu-
and Best CEO of Large Companies.
tives and companies that have continued to innovate and bring
new products and services onto the market. And the power of the independent jury is one of the Business Re-
As the entrepreneurial spirit is flourishing in Romania now, we also opted to divide the Best Startup category in two subcategories: Best Startup in the Service Industry and Best Startup in Manufacturing
view Awards’ key assets. Every year, previous winners have the chance
Industry. The highest number of candidates (29) was recorded in the
to join the team of jurors that carefully assesses and determines who
Best Community Development Initiative, where both multinationals
will triumph in each category.
and Romanian companies on one hand and NGOs on the other pre-
Business Review always works with the jury to make sure that the
sented the best programs through which they helped their communi-
criteria and categories closely reflect the latest developments on the
ties last year. Some 15 application forms were received from local and
local and international markets.
multinational companies, and a further 14 from NGOs.
This year, two new categories – Best Financial Partner for SMEs
Companies with Romanian capital made it into the competition this
and Best Acceleration Program for Startups – have been included to
year too, being put forward for consideration either by the magazine
recognize the massive growth of the local entrepreneurial sector. In
and the jury, or through self-nomination. This year, we also decided
addition, we have decided to differentiate the efforts made by the
to invite both our readers and partners to vote for their favourite pro-
management of SMEs and large companies, splitting the Business
moter of Romania through art.
www.business-review.eu Business Review | March 2019
BR AWARDS 37
1. BEST COMMUNITY DEVELOPMENT INITIATIVE - Companies
ated as an external entity – hiring, firing
The Community Development - Companies
constantly evolving, and now the key objec-
category - awards the CSR initiatives of both
tive for attracting and retaining top talent into
Romanian and foreign companies and recog-
business is the focus on people practices.
and moderating conflict. The world of HR is
nizes their contribution to the community, by
• Autonom
demonstrating their commitment to imple-
• Banca Transilvania
menting medium- and long-term programs/
• Kaufland Romania
projects. It looks to reward companies’
• Microsoft Romania
involvement in community development programs with a high social and or economic
5. DEAL OF THE YEAR
impact on society.
This category acknowledges the most impor-
• Ariston Thermo Romania - The Ariston
tant business transactions of the previous
Comfort Challenge Romania
year, regardless of the transaction type. It
• Kaufland Romania – In stare de bine
recognizes the deal that had the most impact
program
and significance in 2018, in financial terms
• Microsoft Romania – Alt Viitor
and the development of the local economy, or
• Zitec - #cei 1024
of a particular industry. It looks at novel elements of the respective transaction, and how
2. BEST COMMUNITY DEVELOPMENT INITIATIVE - NGOs
the deal stands out on the local or regional business scene. It awards the seller.
The Community Development - NGOs cat-
• Banca Transilvania - Bancpost
egory - awards the initiatives of local NGOs
• Dedeman - The Bridge (Forte Partners)
and recognizes their contribution to the local
• Softvision – Cognizant
community or society as a whole, by demonmedium- and long-term programs/projects. It
6. BUSINESS LEADER OF THE YEAR Best CEO of Large Companies
looks to reward NGOs’ involvement in com-
The award seeks to recognize the remark-
munity development programs with a high
able achievements of businesspeople that
social and or economic impact on society.
go above and beyond their daily roles and
strating their commitment to implementing
• Junior Achievement
responsibilities as heads of companies, local
• Romanian Business Leaders
or international. For the first time this year,
• Teach for Romania
this category is split into two subcategories: Business Leader of the Year for CEOs of Large
3. INNOVATION IN TECHNOLOGY
Companies and for CEOs of SMEs.
This award recognizes novel, innovative and
• Marco Hoessl, Kaufland Romania
research-driven strategies, developed in/for
• Felix Patrascanu, FAN Courier
Romania. The category is meant to cover the
• Ömer Tetik, Banca Transilvania
many developments related to the introducas well as the roll-out of R&D-oriented invest-
7. BUSINESS LEADER OF THE YEAR Best CEO of SMEs
ments.
The award seeks to recognize the remark-
tion of new products, services or campaigns,
• Genpact for its Attrition Predictive Tool –
able achievements of businesspeople that
• A Machine Learning Engine
go above and beyond their daily roles and
• Happy Recruiter - Dora robot
responsibilities as head of companies, local
• Instant Factoring
or international. For the first time this year,
• Vodafone - Telemedicine center for
this category is split into two subcategories:
insulin-dependent children
Business Leader of the Year for CEOs of large companies and for CEOs of SMEs.
4. BEST EMPLOYER
• Monica Cadogan, Vivre.ro
Now more than ever, organizations are
• Alexandru Lapusan, Zitec
investing in the improvement of their people
• Marius and Dan Stefan, Autonom
practices. Gone are the days when HR oper-
www.business-review.eu Business Review | March 2019
38 BR AWARDS
8. EXCELLENCE IN BUSINESS
• Act for Tomorrow and NEPI – The Empty
This award recognizes the outstanding
Shop
achievement of a local business over a longer
• Kaufland Romania – The first store reor-
period of time, looking at aspects such as
ganized after a plastic free strategy
innovative character, development achieve-
• Viitor Plus – social business Recicleta
ments, market share and the overall reltoday’s hyper-fast world, excellence requires
12. BEST FINANCIAL PARTNER FOR SMEs
building flexible, nimble organizations
This category awards the efforts made by
that can quickly adapt to rapidly changing
financial institutions in their endeavors to im-
markets without losing sight of their vision of
prove the SME sector in Romania, considering
winning.
that SMEs represent the driving force for any
evance for the local business environment. In
economy. • Autonom • Banca Transilvania
• Banca Transilvania
• Farmec
• ING Bank • ZITEC with Instant Factoring
9. BEST START-UP in the services industry This award recognizes the overall impact of
13. BEST ACCELERATION PROGRAM FOR START-UPS
the new investors that made their entrance
This category awards the efforts made by
on the local market in 2018. For the first time
business accelerators and incubators in their
this year, this category is split into two sub-
endeavors to improve Romanian start-ups
categories: start-ups specialized in delivering
and to encourage entrepreneurial initiative in
services and start-ups specialized in manu-
Romania.
facturing products. • Impact Hub Bucharest • Keez
• Orange Fab Romania
• The Beer Institute
• Techcelerator
• Zitec with Instant Factoring
10. BEST START-UP in the manufacturing industry
14. BEST EMERGING ENTREPRENEUR OF THE YEAR This award recognizes the entrepreneurial
This award recognizes the overall impact of
efforts and achievements of a local emerging
the new investors that made their entrance
businessperson who has managed to develop
on the local market in 2018. For the first time
a successful regional or national business
this year, this category is split into two sub-
(expansion on the local and other foreign
categories: start-ups specialized in delivering
markets, significant organic growth, high po-
services and start-ups specialized in manu-
tential for development of the business both
facturing products.
on a local or international market).
• Disofa
• Razvan Crisan, The Kane Group
• KHAR
• Claudia Goga, CareToPets
• Nalu
• Alexandru Lapusan, Zitec • Radu Savopol, 5 to Go
11. BEST GREEN PROJECT This category awards the efforts made by companies / NGOs to make their contribution
Vox Populi: BEST PROMOTER OF ROMANIA THROUGH ART
to environmental protection, by imple-
• Sonoro Festival
menting projects with a high impact on the
• UNTOLD Festival
environment and society as a whole. It aims
• ART SAFARI Bucharest
also to recognize their efforts towards educat-
• The Transilvania International Film
ing Romanians in the spirit of recycling and
Festival
protecting the environment.
• Sibiu International Theatre Festival
www.business-review.eu Business Review | March 2019
40 MINDCHAIN
MindChain, the event that brought blockchain and AI together The biggest event in blockchain and artificial intelligence (AI) in Romania took place in February, in Cluj-Napoca, the country’s fastest growing IT hub. MindChain – When Blockchain meets AI is one of Business Review’s flagship events of 2019, and marks the beginning of a series of events that will cover the future of the technologies that will shape the future. By Aurel Dragan
Muhammad Salman Anjum, Sebastian Cochinescu, Ella Cullen, Cornel Amariei
O
ver two days in Cluj-Napoca, dubbed
retail, finance and banking, real estate, trans-
especially Machine Learning, is more than
Romania’s Silicon Valley due to
portation, art, entertainment and media.
just robots that can weld and turn screws. AI
“If you put crap in the data, the AI will
can cover the places where the human brain
and strong student community, MindChain
give you crap,” said Thomas Kulnigg, partner
is not able to cope with the huge amount of
explored the interaction between blockchain
at Schoneherr Attorneys at Law, giving an
data.
and AI. The key proposition, reflected across
example of the data analysis by AI-powered
the entire agenda, was that AI empowers
apps. AI is a technology that emerged de-
limited applications. The robot is not AI itself,
and enhances one of the most revolutionary
cades ago, but it has only recently grown to
it is just a container for AI,” said Laura Ma-
technologies to have emerged in recent years,
cover all kind of industries. The main concern
nescu, head of Moneymailme, M3 Holdings,
blockchain. With a 30-panel agenda featuring
for employees is that they will be replaced by
adding that there are 45 million results for
international speakers and key figures on the
robots in the area of repetitive tasks. Their
Fintech apps on Google search. The financial
blockchain scene, MindChain presented the
concerns are real; such jobs are already be-
and banking system is one of the most dis-
latest case studies of the technologies across
ing done by robots as we can see in the auto
rupted sectors by blockchain and AI. The big
a comprehensive mix of industries such as
industry or in electronics production. But AI,
corporations were forced by Fintech startups
its unique mix of tech companies
“AI is pretty smart and it has almost un-
www.business-review.eu Business Review | March 2019
MINDCHAIN 41
to begin investing in AI and blockchain in order not to lose clients looking for simpler ways to transfer money around the world. The decentralized system that blockchain offers will be the answer to the paradoxes we see today. For example, there is a company in Germany that can deliver in two days a product anywhere in the world, but its bill is paid in two weeks, which is not okay since the transfer can be stopped by the payer along the way, even after the product is received. Blockchain can be the answer since its distributed ledger technology allows a very fast transfer that is also secure, without the possibility of withdrawing the money during Alexandru Glod
the transfer. Blockchain took off as a technology after the invention of cryptocurrency. The virtual money peaked in value at the end of 2017, decreasing by more than 80 percent since then, but this doesn’t mean the end of cryptocoins. “The ICO (Initial Coin Offering) mechanism is amazing because it allows so many investors to participate in projects – but most of the people who were involved in the ICO space in 2017-2018 didn’t really care about anything but themselves,” said On Yavin, founder of Cointelligence, explaining the crash of the cryptocurrency market. But the latest investing instrument, the Security Token Offering (STO), which uses the same mechanism, allows investors to get involved in projects that are otherwise beyond their means, like real
John Lilic, Peter Geršak, Andrei Nagy, Evgeniia Filippova, Thierry Arys Ruiz
estate projects. Of course, not everyone sees such a bright future for the new technologies. While he sees blockchain becoming as normal as the internet, Thomas Kulnigg doesn’t think AI will develop in the same way. “Maybe I’m wrong, but I am very skeptical that we will see the same technological shift in AI as we see with blockchain, because AI lags so far behind in terms of technological approach. Most of the many AI applications do not work, or are not intelligent in the sense that we save time using them,” said Kulnigg. The example he gives is an AI startup from Austria that developed an AI software that extracts summaries from news article that are two pages long. The summary is two to three bullets points so one can read 20 articles in
Thomas Kulnigg, Michael Huertas, Christian Piska, Aviya Arika
a few minutes (or at least their synopses). But the investors took two years to manually
www.business-review.eu Business Review | March 2019
42 MINDCHAIN
Max Borders
write 60,000 summaries of articles in order
ment is that using them is cheaper, allow-
to teach the AI how to do the same job. “That
ing cost-cutting for many functions in the
is the problem: it takes a lot of time, and if
activity of a company. “We already have AI
the data is not good, the result from AI also
and blockchain in many places; we just don’t
isn’t good,” said Kulnigg.
see it. And we will see it everywhere, but I
Undoubtedly a human touch will still be
don’t know when that is supposed to hap-
needed in order to perfect the result that
pen. What we need are good cases of how the
AI data analysis offers. In the healthcare
technology can replace the existing solutions
system, for example, the results given by
in a meaningful way. But the technology
AI analysis for oncology are more accurate
is there and it might be adopted on a large
than those of doctors. But the final treat-
scale earlier than we expect,” said Evgeniia
ment decision will still be made by a doctor,
Filipova, senior scientist at the Research
not by the machine. “Both technologies –
Institute for Cryptoeconomics, at the Vienna
blockchain and AI – have limitations. Time
University of Economics and Business.
will show to what extent these technologies will evolve, but we as a corporation really believe these are the technologies of the future. Besides them, there is quantum computing, which is a completely new paradigm of computing, as well as cloud, cyber-security and IoT (Internet of Things),” said Peter Gersak, chief technology officer for South East Europe at IBM. No matter how we see the technologies, it is clear that the future will be shaped by them. And the first driver for develop-
Peter Geršak
Michael Huertas
www.business-review.eu Business Review | March 2019
44 ROMANIAN FILM
Bigger screen: Gopo Awards, Romania’s Oscars, set new records The 13th Gopo Awards (Premiile Gopo), the event awarding the local movie industry, has finalized its shortlists from a total of 79 Romanian films released in 2018. So who will the cinema world be celebrating this year? BR grabs the popcorn and finds out. By Oana Vasiliu Documentary section nomination: Caisa (d. Alexandru Mavrodineanu)
European film nomination: Chipuri, locuri / Visages villages (d. JR Agnès Varda)
Local Oscars night: The Gopo Awards
T
he start of spring heralds the local
race for a nomination, among them Claudiu
film industry awards, a celebration
Mitcu’s Anniversary, Infinite Football di-
that involves more and more movies
rected by Corneliu Porumboiu, and environ-
each year. This year’s festival showcases a record
Featured film category: Morometii 2 (d. Stere Gulea)
mental documentary Untamed Romania. The best short category hosts a total of
number of feature films – 28 productions –
48 productions, including: Sunday (Dorian
including Pororoca directed by Constantin
Boguţă), The Two Executions of the Marshal
Popescu, which was awarded at the San Se-
– a Comparison (Radu Jude); Christmas Gift
bastian festival; Radu Jude’s latest, I Do Not
(Bogdan Mureşanu), Michelangelo (Anghel
Care If We Go Down in History as Barbarians
Damian) and Everything is Very Far (Emanuel
– Romania’s proposal for the 2019 Oscars;
Pârvu). The pre-selection jury, established by
Morometii 2 from Stere Gulea, one of the
the Gopo Awards advisory board, consists of
highest-grossing Romanian movies in 2018;
11 professionals from local cinema. After the
The Story of a Summer Lover, directed by
jury announces the nominations, more than
Paul Negoescu; local comedy Pup-o, ma!, the
600 active members of the Romanian cinema
feature debut of Camelia Popa; and Andrei
industry will be invited to vote for the Gopo
Cretulescu’s debut feature Charleston. The
2019 trophy winners. The event takes place
documentary section saw nine titles join the
on March 19, at Bucharest National Theater.
Featured film category: Charleston (d. Andrei Cretulescu)
Featured film category: Pororoca (d. Constantin Popescu)
www.business-review.eu Business Review | March 2019
PARTNER CONTENT 45
SUBWAY® ROMANIA IS PLANNING IN 2019 THE EXTENSION, OPENING FRESH NEW DECOR RESTAURANTS AND THE DEVELOPMENT OF THE DELIVERY SERVICE
Andrei Trifan
Rumen Radev
SUBWAY® Romania, part of the largest fast-
the country. This year we will remodel to new
food restaurant chain in the world, ended
“Fresh Forward Decor” all the restaurants that
2018 with very good financial results thanks
were opened in 2012”, says Andrei Trifan, Busi-
restaurants’ offers you can find on Subway
to the excellent business optimization. With
ness Development Agent for the area outside
România.
a network of 38 restaurants in Romania, of
Bucharest-Ilfov.
which 17 in Bucharest, SUBWAY® Romania
In 2018, Romanians have proved appreciation
expanding the home delivery program. More details about the SUBWAY®
SUBWAY® Romania
has continuously increased its profits and
and receptivity for the Subway products and in
The history of Subway brand started in
will continue its ascending trend in 2019.
2019 the focus will be on franchisees. “We are in
1965 in United States and its success has
With over 500 employees in Romania,
direct contact with the Subway franchisees and
been based on a business model developed
38 functional restaurants and other 10 in
ready to offer support to those who want to start
by Frederick DeLuca. A simple and tasty
development, Subway® Romania ended 2018
a business in Romania. We continue negotiations
sandwich made before guest’s eyes was the
in the top. The volume of sales per restau-
to get the best locations and best rental prices”,
idea behind each restaurant and the starting
rant increased by 8% compared to 2017. The
says Rumen Radev, Business Development Agent
point in the brand’s international expansion.
positive trend was also felt in the first month
for the Bucharest-Ilfov area.
Today, Subway stands for over 43,000 res-
of 2019. “In the past year, we focused on the
In 2019, SUBWAY® Romania will open its
taurants in more than 100 countries. In 2011,
business optimization. We have, thus, man-
firsts Fresh Forward decor restaurants. The first
the brand enjoyed the status of the biggest
aged to maintain a growth trend and to keep
one will be openes in Pitesti. The brand will also
chain of fast food restaurants in the world
our customers faithful. The delivery platform
continue to introduce new sandwiches and new
with respect to Romania, the chain has been
also had a spectacular increase, and we man-
coffee flavors. SUBWAY® is focusing on excep-
in the market for almost 7 years and has
aged to double the number of orders in just
tional services and product quality, but also on
more than 38 restaurants.
a few months. Like the past years, we have continued to grow our business, we have maintained the positive trend by increasing the turnover, sales and profitability”, says Rumen Radev, Business Development Agent for the Bucharest-Ilfov area. “In 2019 we are continuing to develop the SUBWAY® brand and to make it stronger in Romania. We are planning to open street location in big university cities and continue our partnership with gas stations on transit all around
www.business-review.eu Business Review | March 2019
46 CITY
Cultural calendar Cornel Lazia exhibition Until March 9, Creart
By Oana Vasiliu
Bikers’ Fair March 29-31, Baneasa Shopping City parking
One of the most well-known Romanian photographers, Cornel Lazia, presents his latest exhibition, Monolith, an Expression of Viewing. In his work, Lazia “explores the idea of a new code of cities, reinterpreting the relations between human and structure, in a bid to create an ideal city which lives and breathes in an
Get on your bike for the larg-
imaginary dimension, deposit-
est fair of its kind in Romania!
ing aspirations that feed with
National and international
inspiration. This selection shows
brands will showcase their latest
the multitude of connections
products, while an impressive
with this ‘human congestions’,
skate park will be arranged for
real human reactors which feed
demonstrations and tricks. En-
progress and hope,” says Eugen
trance costs RON 20.
Radescu, the exhibition’s curator.
Mastering the Music Business conference March 20-22, Caro Hotel Mariza concert March 6, Sala Palatului
Mamma Mia! musical March 15, Sala Palatului
Breakers Award. That same year, Mariza sang the duet A Thousand Years with Sting, during the Olympic Games in Athens. Since her 2001 debut, she has also worked with artists such as Lenny Kravitz, Cesária Évora, Tito Paris, Carlos do Carmo and Rui Veloso. Ticket prices start from RON 99. Iconic musical Mamma Mia!
Jazz in Church March 7-10, Lutheran Church
A professional event for the
returns to the Sala Palatului
music industry seeking both to
stage, bringing ABBA hits and a
provide attendees with useful in-
touch of sunshine for fans of the
The seventh Jazz in Church
formation and to create a bigger
iconic 70s band and of musicals
festival brings 20 musicians
and more powerful community
in general. This Romanian-
from all around the world for
of music business professionals
language version will attract a
Fado lovers – get ready to
four full days of jazz. Mario
from all over Europe – whether
wider audience to one of the
welcome back Mariza onto the
Batkovic, Maria Pia De Vito, Anja
artists or not – looking to share
most successful musicals of all
Bucharest stage! The Mozam-
Lechner, Francois Couturier and
information about the latest
time. A star-studded local line-up
bique-born Portuguese artist
Michele Rabbia will be among
trends, technologies, promo-
features Loredana, Horia Brenciu,
has received numerous Grammy
the performers in this uniquely
tional means and music monetiz-
Aurelian Temisan, Cornel Ilie,
awards nominations and, in
located event. Tickets start from
ing at all levels. Tickets start from
Anca Turcasiu and many, others.
2004, won the European Border
RON 120.
RON 250.
Tickets start from RON 75.