FIC: Steven van Groningen, CEO and president of Raiffeisen Bank, has been elected president of the Foreign Investors’ Council, and has already announced the priorities during his mandate »page 22
ROMANIA’S PREMIERE BUSINESS WEEKLY
INSURANCE REPORT INSURANCE FIRMS HAVE BEEN BADLY SQUEEZED BY THE CRISIS. BR TAKES AN IN-DEPTH LOOK AT THE INDUSTRY AND HEARS HOW PLAYERS HAVE ADAPTED IN ORDER TO SURVIVE »PAGE 10-15
June 20 - 26, 2011 / VOLUME 16, NUMBER 22
NEWS
Net-working TeamNet, part of Asesoft, is looking to use the expertise it has gained locally on neighboring markets » page 6 BR EVENT
Cristian Nacu, president of South Eastern Europe’s Private Equity Association and partner in Enterprise Investors, gives the inside track on both organizations and names his hot tips for PE funds, for whom the end user is a key aspect
Going Dutch
»page 18
Consumption is showing no signs of picking up and spirits producers are battling the black market » pages 14 - 15
RESTAURANT Not such a dud: named after the mulberry tree, leafy La dud Morgan is the hot place to cool off this summer, discovered Business Review » page 19
FILM REVIEW The Wright stuff: Hanna, an unusual thriller from Atonement director Joe Wright about a teenage assassin, pulses with energy and humor » page 20
FOCUS
In good spirits?
LINKS
Big blogging
Courtesy of BRD
INVESTMENT FUNDS FOCUS ON END USER
Romania’s delayed entrance into the Schengen area was a topic of debate at BR’s Dutch Business Forum » page 7
Top local bloggers are getting recruited by companies as brand ambassadors and social media specialists » pages 16-17
www.business-review.ro Business Review | June 20 - 26, 2011
NEWS 3
NEWS in brief WEEK in numbers
30% is the likely cut in the auto tax, according to a government draft bill set to enter into force this July
Courtesy of Alex Preda
IMAGE of the week Walking the wall: Bucharest hotel hosts “Xtreme” show The Ibis Hotel, located in Bucharest’s Gara de Nord area, became an unconventional stage for an acrobatic performance on June 15. Acrobatics band Xtreme and Escape professional alpinists were the stars of a spectacle on the façade of the hotel, combining Romanian traditions with visually powerful experiments in force, acrobatics and dance. The show was directed by Chris Simion, produced by Gala MGMT & PR and presented by Carlsberg.
BUSINESS AGENDA June 21 ∫EVENT Business Review organizes the third Energy – Focus on Oil & Gas event at Ramada Plaza Bucharest. For more info please visit www.business-review.ro/events. 09:00 Sony organizes a press conference at Baneasa Shopping City. By invitation only. 11:00 KaVo Dental GmbH announces the start of operations in Romania at the Uzinexport headquarters. By invitation only. 15:30 Alinso Group organizes an event at Ploiesti West Park. By invitation only. June 22 11:00 The Association of Romanian Auto Parts Distributors (ADPAR) organizes a debate at Howard Johnson Grand Plaza Hotel. By invitation only. Adama organizes an event in Brasov for the completion of the Evocasa Viva project. By invitation only. July 5 9:30 Estima Medical Group organizes an event on the influence that instruments have on the medical act at Athenee Palace Hilton Bucharest. By invitation only.
PROPERTY Real estate fund NEPI starts trading on BSE Real estate fund New Europe Property Investments Plc (NEPI) has started trading on the Bucharest Stock Exchange (BSE). This is the first listing of a real estate fund on the BSE. The fund, which is trading under the code NEP, listed almost 77 million shares with a nominal value of EUR 0.01, which are being traded on the Real Estate Investment Trusts REITs segment. NEPI’s retail portfolio includes 11 assets with a total surface area of 101,000 sqm, evaluated at EUR 148 million, which is the gross annual revenue from rents at the end of December 2010. Its office portfolio includes 20 properties with a total surface of 84,500 sqm, put at EUR 144.8 million, representing 44 percent of the gross annual revenue from rents at the end of 2010. The fund’s industrial portfolio is made up of a 23,000-sqm industrial property in Rasnov and a 4,800sqm logistics property in Bucharest. At the end of 2010 the two sites had been evaluated at EUR 17.3 million, or 6 percent of the gross annual revenue from rents.
EUR 50 million Oradea Shopping City to open this fall Oradea Shopping city, the EUR 50 million project developed by Shopping Center Holding, will open this fall, with the largest indoor entertainment center in the city. The center will be run by UK company The Light, and will take up 4,500
sqm. It will feature a six-room 3D cinema center spreading on 2,300 sqm. Tenants in the project include Famous Brands, Bigotti, Penti, Samsonite, Coccodrillo, Domo, Gloria Jean’s and Altinbas. Oradea Shopping City covers a 30,000-sqm surface, with 22,000 sqm of retail space, a 6,000-sqm entertainment space, a 2000-sqm fast-food and restaurant area, and a parking lot with 1,000 spaces.
ONLINE State wants to create a Media Digital Library The Ministry of Communications has announced it will create a Media Digital Library, which will comprise all Romanian mass-media titles – newspapers, magazines and periodical supplements of any type – in virtual format. The digital press project was considered essential both for the Romanian public and the mass media, and is in line with the European strategy to create a European Digital Library.
POWER Schneider Electric inaugurates regional customer care center Energy company Schneider Electric has recently opened a regional customer care center in Bucharest for its IT division. The company announced last week that it had hired 44 workers. The center in Ro-
11.1 billion euro is the value of Romanian exports in the first three months of this year, according to a Eurostat survey
20,500 ron (or approximately EUR 5,000) is the average cost of a Romanian wedding, according to an analysis by Western Union mania will manage relations with clients in France, Italy, Spain, Germany, the Netherlands, Switzerland, Austria, Belgium, Luxembourg, Poland, the Czech Republic, Slovakia, Slovenia, Hungary, Romania, the Adriatic countries and Israel.
MACRO Romania attracts 29 percent less FDI in Q1 Non-residents’ direct investment in Romania amounted to EUR 444 million in Q1 2011, dropping by about 29 percent from the EUR 623 million in January-April 2010, announced the National Bank of Romania last week. FDI covered 38.5 percent of the current account deficit in the first four months of 2011. Out of the total figure, intra-group loans amounted to EUR 324 million and equity stakes consolidated with estimated net loss to EUR 120 million.
PHARMA Tamisa Trading expects 30 percent increase in sales this year Drug wholesaler Tamisa Trading expects sales of roughly RON 48 million (approximately EUR 1.2 million) for 2011, up 30 percent against the previous year. The reason behind the change and the main engine for growth is the diversification of the business into related activity which is new for Tamisa Trading and better orientation towards the final consumer, according to the firm.
www.business-review.ro Business Review | June 20 - 26, 2011
4 NEWS PROPERTY
TELECOM
Immofinanz Infrastructure Law awaiting approval of completes EUR Chamber of Deputies, says ANCOM president 42 mln acquisition A of Adama
Courtesy of Immofinanz Group
Daniel Riedl, member of the executive board of the Immofinanz Group
I
Catalin Marinescu, ANCOM president market regulator ANCOM to perform an inventory of the existing networks and create an information portal about them. This portal will form the basis of a map of the existing networks. Operators in Romania will be obliged to contribute to this inventory by presenting the networks they have but also their network development plans. “The German model is
very close to what could also happen in Romania after the infrastructure law is adopted. This inventory referred only to the electronic communications networks, but I think we can open discussions so that it also includes the energy networks,” said Marinescu. ∫ Otilia Haraga
HEALTHCARE
Regina Maria opens EUR 1.7 million clinic in Sun Plaza
A
Regina Maria clinic has opened in Sun Plaza, the first local clinic ever to open in a shopping mall. Located on the second floor of the retail center, the facility has a surface area of 1,000 sqm and is the result of a EUR 1.7 million investment. The Sun Plaza clinic specializes in physiotherapy, pediatrics and MRI (imagistics) services and offers access, in a national first, to the David system for spinal injury recovery. The system is formed of five devices with LCD screens and Info Kiosks.“With the two newly opened clinics, Lujerului and Sun Plaza, we’ve man-
Courtesy of Regina Maria
mmofinanz Group has acquired the remaining 69.22 percent in Adama Holding. It had been a shareholder in the South-Eastern European residential property group since 2007 and will now become the sole shareholder. The stake cost EUR 42.43 million. The sellers included the international US-based hedge fund Tiger Global, Morgan Stanley, Lehman Brothers UK in administration and the founding shareholders. “Our goals are to integrate the expertise and market know-how of local management into the Immofinanz Group and to realize synergies to the greatest extent possible. From our viewpoint, Adama is the ideal platform for the planned expansion of our residential construction and development activities, above all in Romania,” said Daniel Riedl, member of the executive board of the Immofinanz Group. He added, “The 100 percent takeover of Adama also underscores the steady implementation of our strategy to develop non-controlling interests into majority holdings and attain strategic control or to sell these investments.” Adama has completed approximately 1,500 apartments since its founding in 2005, and ten projects are currently under construction or realization. The company has a development portfolio of properties with a total area of over 1,360,000 sqm, which would allow for the realization of more than 40 additional projects. “Our Romanian portfolio currently includes a number of undeveloped sites in Bucharest. The objective is to create entire city quarters – an interesting challenge that we intend to address with the Adama team as soon as the Romanian economy can provide the necessary environment,” said Riedl. ∫ Staff
new Infrastructure Law, which creates the premises for the joint development of a common network that could then be exploited separately by telecom and utility operators, is very close to being passed, according to Catalin Marinescu, ANCOM president. The bill has reached Parliament and is awaiting the approval of the Chamber of Deputies, which is the decisive factor in this case. After it is rubberstamped by the Juridical Commission, it must be voted in plenum. The bill is likely to be adopted in two weeks at the earliest, said Marinescu. Germany could be a model for Romania, as it already runs a database of current but also planned infrastructure. To update this database and stay informed about the new developments and existing opportunities, both local authorities and telecom and utilities companies in Germany have joined the system. “Since December 2009, more than 350 requests have been made in the system, which especially concern the development of the municipal optic fiber networks. This initiative led to the development of common networks,” added Marinescu. Similarly, the Infrastructure Law in Romania will require the local telecom
Regina Maria treats 3,000 patients daily
aged to cover two new Bucharest areas, our intention being to be present in all of the city’s largest neighborhoods. We aim, by yearend, to reach 30,000 patients without subscriptions. The Sun Plaza clinic will serve not only the southern Bucharest population, but neighboring hospitals as well: Baltazar, Sfantul Luca, Sfantul Ioan, Intitutul de boli neuro-vasculare, Budimex, Victor Babes and Spitalul Judetean Ilfox, for children’s and adults’ imagistic services,” said Wargha Enayati, general manager at Regina Maria. Corina Dumitrescu
POSTAL SERVICE
Romanian Post might get bank and insurance broker
T
he Communications Ministry, which holds 75 percent of shares of the Romanian Post, wants the company to have a bank and insurance broker to help it make better use of its network and bring in additional revenues, the minister, Valerian Vreme, told Mediafax. “We want to be more transparent, and eliminate any doubt there might be over the management of the Romanian Post,” he said. According to a draft bill by the ministry, the Post will establish two new commercial entities, the Romanian Post Bank and Romanian Post Insurance. It will close seven of its
branch offices and reorganize its regional centers in the postal network. The Romanian Post will be the only shareholder in the entities. “ For the bank, we plan to attract an experienced company with the necessary financial resources. After the draft bill is approved by the government, we will have the legal option to establish the two entities, but we will not assume this is compulsory. Everything, especially the bank, depends on the results of a study, of a business plan,” Vreme said. According to Central Bank regulations, a credit institution needs a minimum social
capital of RON 37 million for its establishment. For insurance brokers the minimum capital is RON 25,000. In negotiations with the IMF, the government committed to cutting at least 70 administrative positions and to reduce the number of post offices by more than 900 by the end of July. The restructuring process will affect 2,000 employees. The shareholders of the Romanian Post are the Communications Ministry, with 75 percent, and the Property Fund, which holds the other 25 percent. ∫ Staff
www.business-review.ro Business Review | June 20 - 26, 2011
6 NEWS AUTO
TeamNet aims for EUR 32 mln turnover, grows footprint on external markets T Courtesy of More
Bogdan Padiu, general manager of TeamNet
eamNet, part of Asesoft, is aiming for a turnover of EUR 32 million in 2011. Last year, the company posted EUR 21 million, Bogdan Padiu, general manager of TeamNet, told Business Review. The firm has three major components in its future strategy. “Firstly, we wish to grow our footprint on the international market. We want to replicate the experience we gained in Romania on neighboring markets – these are markets that also want to join the EU, so they will have a similar evolution to Romania. The second direction is to target SMEs with the MORE platform, which is a very important initiative for us. Thirdly, we will continue to develop in the corporate area, targeting
large organizations with private capital with our solutions,” Padiu told Business Review. At the moment, TeamNet has offices in the Republic of Moldova and Brussels, Belgium. Plans are to open new branches in Turkey and Serbia. “Usually, when we start the business in a new country, we open an office with a team of four-five to establish a presence on the local market and start to learn about the local business climate. After that, based on the opportunities we identify on the respective market, we start to expand the office,” added the GM. At first, most things related to the product range and preparing for future opportunities are done by the team in Ro-
mania with the help of the local unit. “After that, as is the case in Moldova for instance, where there are already contracts in full swing, the company starts hiring people from the local market to grow and become fully autonomous. TeamNet has deployed 12 people to offices in the Republic of Moldova and 3 to Brussels. “In the first stage, they do sales and pre-sales under the coordination of a branch manager. The moment we start having projects, we hire engineers, analysts and project managers to deliver on the respective market,” said Padiu. Until last year, TeamNet targeted large to very large companies. Clients were either private organizations with a high degree of complexity and wide coverage, or governmental organizations and local public administrations. Over 50 percent of the company’s revenues come from the public sector and the rest from the private sector. Padiu says the cash flow bottlenecks from the public sector have had a negative impact on the company. “We have learned how to work with the state and tailor our expectations accordingly regarding ability to pay. We have also learned to look at releases from the Ministry of Public Finances and see what is happening with the European funds and understand their internal processes in order to be able to anticipate whether there will be a payment this month or two months from now,” he said. “If you understand the system and the way the state works, you realize you could have known two months ago you would not receive payments this month. By anticipating what will happen, you can take some measures.” As a rule, the company does not have bills that are more than 60 days late. “We try to synchronize pretty well and anticipate, especially in the case of projects with European funds where procedures are really rigorous. There were some situations when payments came later. Fortunately, we have a high number of projects and a problem that may appear on one of them does not affect the organization as a whole to a great extent,” said Padiu. Recently, TeamNet launched MORE a solution tailored for small and medium sized companies. “We also had the surprise of seeing that even larger companies are thinking of outsourcing certain activities such as the internal portal side or CRM. The platform supports work in any industry but we also offer customization services to adapt its functionalities better to industry specifics,” said Padiu. During the pre-launch stage, TeamNet had real clients using this platform, and allowed some time to pass to get some feedback from them on improvements that needed to be made. “We now think we are ready to launch it and attract a higher number of users. At this point, we have 300 users of this solution and hope that by the end of the year we will surpass 5,000,” added the GM. ∫ Otilia Haraga
www.business-review.ro Business Review | June 20 - 26, 2011
7
Dutch debate Schengen question There are still business opportunities in Romania – albeit fewer than in recent times – and the situation is expected to recover, with the potentially delayed accession to the Schengen area not affecting this. This was the view of many company representatives at the third Dutch Business Forum organized by Business Review last week.
∫ SIMONA BAZAVAN
“If we look at Germany, the Netherlands and also Romania, SMEs will be the backbone of growth for the economy.” Peter Jansen, partner with Brainovate “It continues to be relatively cheap to set up a new business here and Romanians are very much into setting their own companies”
l-r: Robin Martens, Flemmin Sorensen, Peter de Ruiter, Hans Smaling, Peter Jansen
Flemmin Sorensen, GM of Damen Shipyard Galati “Does the Schengen accession matter for the industry here? Psychologically I think yes; in practice it matters less.” Hans Smaling, head of the economic section, the Netherlands Embassy
Around 50 businesspeople gathered to debate the hot topics for Dutch investors “It’s not a matter of whether Romania will join Schengen but when,” said Hans Smaling, head of the economic and trade section of the Netherlands Embassy in Bucharest. “The Netherlands thinks that Romania is pretty much on track in terms of economic reform and the authorities are working very hard in the judicial sector,” added the diplomat. A lot has to be done still, but further improvements will lead to a win-win situation. “Ultimately the judicial reforms will also benefit business in term of transparency and predictability of the business climate,” Smaling added. Talking about business opportunities in Romania, Jansen argued that in Romania it continues to be relatively cheap to set up a new business and Romanians are very much into setting their own
companies. “What is lacking sometimes is realism,” he noted. Peter de Ruiter, partner tax & legal services at PwC Romania, president of NRCC and also the event’s moderator, aired his view that SMEs are a driving factor for any economy. “If we look at Germany, the Netherlands and certainly in the future also Romania, SMEs will be the backbone of growth for the economy,” he said. Discussions also touched on whether Romania could benefit from a technocrat government this year, prior to the elections, as some politicians have suggested, and the effects of the crisis on the local labor market and productivity. The third Dutch Business Forum attracted around 50 participants to the Capital Plaza Hotel.
“The judicial reforms will also benefit business in term of transparency and predictability of the business climate” Robin Martens, general director of Archicom, VP of NRCC
All photos: Laurentiu Obae
A hot topic of recent times also addressed by participants at the Dutch Business Forum was Romania’s accession to the Schengen area. Attendees debated whether Romania is ready to join the zone right now and whether a delay in its admission would impact the local business environment. “Romania’s accession would be a normal step forward,” said Robin Martens, general director of Archicom and also VP of the Netherlands Romanian Chamber of Commerce (NRCC). Strongly worded statements about whether Romania is ready to join Schengen or not have come from European politicians, including Dutch ones, and although politics weigh heavy in the debate, there is also the question of how Romania is perceived internationally said attendees. Going further than the general public’s opinion, this also impacts the local business environment. “I think it is a matter of not knowing what is happening in these countries (e.n. Romania and Bulgaria). There is a perception gap between those who are active in Romania or know the country very well and people outside the country that have another perception and not the right one, in my view,” added Martens. “It is obvious that the general public in quite a few Western European countries have a rather negative impression of Romania and this is mainly based on corruption. Generally this is of course not good for business,” said Peter Jansen, partner with Brainovate. “On the other hand companies look further than the general public as they are interested in business opportunities. Right now there are fewer such opportunities in Romania than there were three or four years ago but the situation will rebound,” Jansen went on, adding that Romania not joining the Schengen area in the near future will not have an immediate effect on the local economy. “In my opinion the most important issue is not international perception but the fact that Romanian authorities are not able to come up with good projects,” he commented. Flemming Sorensen, general manager of Damen Shipyard Galati, argued that Romania’s accession is a matter of timing. He also said that in a general context that makes many Western European countries reluctant to open up more, Romania is met with suspicion by foreigners who don’t know the country very well. “Does it matter for the industry here? Psychologically I think yes; in practice it matters less. If I look at it from Damen Shipyard’s point of view, we don’t have any serious problems with it. It is not a major obstacle,” Sorensen went on.
Peter de Ruiter, partner tax & legal services at PwC Romania, President of NRCC
“There is a perception gap between those who are active in Romania or know the country very well and people outside the country”
www.business-review.ro Business Review | June 20 - 26, 2011
8 INSURANCE
Adaptation proves the best policy for insurers The local insurance market has been hit hard by the current economic crisis, and specialists expect its performance this year to be much the same as in 2010. Many insurers are now focusing on adapting their portfolio to the new economic conditions, entering on new market segments and adjusting their products to the needs of their customers. ∫ ANDA SEBESI
Dreamstime
The economic recession that blighted Romania in 2010 has definitely stifled the development of the insurance business. The depressed economic climate reduced consumption, including of financial services like insurance. Simultaneously, austerity measures taken by the government hit individual income, leaving people with fewer resources to devote to financial planning as well as consumption. Available statistics show a cutback of 5.7 percent in total – life and non-life – gross written premiums in 2010 from 2009, with the market volume declining to RON 8.3 billion. “The non-life sector caused this drop, having contracted 7.5 percent, especially due to the decline of the Casco segment which plunged by more than 25 percent. This reduction in the Casco business volume was caused largely by the huge fall in car sales in general and through the leasing system in particular,” says Rangam Bir, CEO of Allianz-Tiriac Asigurari. He adds that life gross written premiums posted a marginal growth of around 2 percent in 2010, but this reflects an improvement in the retention rate rather than an increase in the number of life customers. “The decline of the insurance market was brought about mainly by the regression of the car segment, which unfortunately is the driving force for the Romanian insurance market, making up over 60 percent of the total sales,” says Marie Kovarova, general manager at Generali Asigurari. Bir raises the issue of profitability, where the VAT increase has had a major effect on overall costs. “The biggest impact is on the claims side. We have had to pay higher claims costs mainly related to spare parts, labor and a range of other activities that we have to undertake in order to settle the claims. All these expenses have risen as a consequence of the VAT increase. This had a direct impact on insurers’ results in terms of
Rainy days: customers have been letting insurance policies lapse in the crisis, when they most need protection, say insurers pushing up claims costs. And it was reflected in bottom-line results: the insurance market posted an aggregated net loss of around EUR 10 million in 2010, according to Insurance Supervisory Commission (CSA) data. This is the fifth consecutive year with losses for the Romanian insurance industry,” says the Allianz-Tiriac representative. The economic crisis has greatly altered the consumption patterns of Romanians in general and of financial services in particular. According to Kovarova, already purchased insurance policies have been wrongly perceived as reliable sources of liquidities so holders have decided to cash in their policies before their maturity. “In addition, customers have put off taking out new insurance indefinitely,” she says. This situation is opposite to Western European countries,
where the insurance market continued to grow because people were aware of the protection afforded by an insurance policy. Asked about the main changes in Romanians’ financial behavior, Anca Babaneata, CEO at Platinum AsigurariReasigurari, says that there are two major trends. The first is that Romanians have dropped insurance that was not considered absolutely necessary. The second is that they have started to pay more attention to the type of insurance they buy, its cover and quality. “It is a very good sign that the price is not the only element that determines the acquisition of a policy,” says the Platinum CEO.
A cautious approach to 2011 Babaneata says that there will be no
surprises on the local insurance market this year in terms of its evolution. “Globally, it is likely to see the same descending trend in 2011. But in time, because of insurers’ efforts to increase the market on other segments than car insurance and to balance their portfolios, it is likely to see growth,” predicts Babaneata. According to Kovarova, the best case scenario for this year is for the value of the local insurance market to be similar to 2010. “The relatively good news from the economy will be manifested in visible positive results for the insurance industry in 2012. The local insurance market maintains its potential for development over the long term. In fact, international specialists believe that Romania and Poland have the greatest potential for development on the medium and long term,” says Kovarova.
www.business-review.ro Business Review | June 20 - 26, 2011
10 INSURANCE customers in the first quarter of 2011 on the same period of 2010. Besides, the average gross premium for contracts signed at ING in the first quarter of 2011 rose by 6 percent on the same period of 2010. Going forward, Coman says that the types of insurance that allow investments will continue to develop if their performance remains stable and positive this year. “I think that financial plans for children will be top of customers’ preferences, as this is a category that remains important to customers despite the economic circumstances,” says the ING Asigurari de Viata representative. She expects at most a marginal increase of about 5 percent in the life insurance market. Lapusan also expects a better development for local life insurance compared with the general market in 2011, estimating an increase of 5 percent on 2010. “Although Romanians’ income has fallen, there is demand for life insurance. Because of the difficult economic conditions, people are thinking more about savings and prefer a long-term investment in life insurance rather than spending money on immediate consumption,” says Lapusan of Uniqa Asigurari de Viata.
Players’ strategies
Courtesy of Allianz Asigurari
The economic crisis has forced players to adapt to the new economic conditions. For example, Allianz-Tiriac Asigurari has launched some innovative products to enter new customer segments that were not in its sights in the past. It also managed to achieve stable development in other non-life insurance lines like MTPL, property, liability and travel, and to sta-
10 mln
EUR was the aggregated net loss posted by the local insurance market in 2010 bilize its life insurance portfolio, which provided the company with alternative options to diversify its overall portfolio. “The key words for 2011 are stable, sustainable development for the company, measured in terms of the quality of the portfolio, the customer base and distribution capabilities. We also have to maintain our financial and capital strength including profitability,” says Bir. He adds that Allianz-Tiriac will go for balance, which means having an adequate and prudent underwriting process. “We are working to further invest in building state of the art risk management capabilities to deal with major catastrophe risks like earthquakes, to which Romania is exposed. We will pursue growth only if the opportunities do not harm our profitability,” says Bir of Allianz-Tiriac’s strategy on the local market. He adds, “We continue to identify opportunities with our valuable clients, aiming to develop a long-term partnership which means having a balanced and sustainable portfolio. We will continue to review and restructure our product range to ensure better alignment with our customer’s needs.”
Rangam Bir, CEO of Allianz-Tiriac Asigurari
Life insurance overview Remus Lapusan, directorate member of Uniqa Asigurari de Viata, says that according to the CSA, the life insurance market posted an increase of 3.34 percent in total gross written premiums in the first quarter of 2011 on the same period of 2010. “Overall, the value of the Romanian life insurance market in 2010 is similar to 2009. But within this segment we saw some changes: life insurance with traditional annuities decreased, while life insurance and annuities linked with investment funds increased by about 9 percent. It is also notable that health and accident insurance expanded,” says Babaneata. But the current crisis also has a bright sight: once the downturn passes and their income begins to rise again, local consumers will start paying more attention to the need to protect their families or save money. “Romanians have become more interested in their and their family’s financial future and more careful about the way they manage their money. This is confirmed by the evolution of the life insurance market in 2010, which posted an increase of 2.3 percent while general insurance dropped by 7.5 percent. In addition, the number of customers who decided to re-activate contracts that they had allowed to lapse because of financial difficulties increased constantly,” says Cornelia Aurelia Coman, general manager of ING Asigurari de Viata. According to her, the company doubled its number of such returning
Courtesy of INg Asigurari de Viata
Ileana Horvath, directorate member of Uniqa Asigurari, thinks that the general insurance market will drop by about 10 percent this year as a result of the decline of Casco and mandatory car insurance (RCA). “Gross written premiums from RCA are suffering because of the lower prices compared to 2010 and limited promotions for this product. In addition there has been an increase in home insurance because it is mandatory and owners are aware of the need for it. The development of home insurance is a natural step for the local insurance market, as the number of insured homes is still low compared with other countries,” says Horvath. Bir of Allianz-Tiriac anticipates that 2011 will be the third year of falls in the Casco business, with the decline mainly the result of the huge drop in car sales and the leasing system. “Statistics show that both new and second hand car sales decreased by almost 20 percent in the first four months and this continued movement generated a further decrease in the Casco line of business,” says Bir. “As for the overall 2011 results, our best case scenario sees some recovery for gross written premiums but only if the pricing policy for MTPL (motor third party liability) and business changes, and this should mean an increase in the average premium for most car segments. Rising car sales may also help stabilize the situation in the Casco segment.”
Cornelia Coman, general manager of ING Asigurari de Viata
www.business-review.ro Business Review | June 20 - 26, 2011
As for Generali, Kovarova says that the company will keep on developing life insurance this year but will also support other business lines with high potential like home insurance, travel assistance, corporate insurance and property prejudice insurance. “We will also continue to invest in professionalizing our sales force and consolidating our relationship with our partners in order to improve our sales and profitability,” she says.
Elsewhere, Uniqa Asigurari has bold plans for the Romanian insurance market this year, focusing on developing new sales channels and its partnership with Raiffeisen Bank. “Our objective for 2011 is to capitalize on the business opportunities that the local market offers, maintain our market position and con-
tinue to grow on profitable segments. We also intend to increase our team of controllers to 1,000 people by 2015 compared with 414 at the end of last year,” says Horvath of Uniqa Asigurari. Representatives of Alico Asigurari Romania say that the company will focus on coming up with competitive products of benefit to employees of SMEs in addition to the packages offered to multinationals at present. It will also continue the specialized training of its own distribution team, aiming to pursue new partnerships with banks and financial institutions. “We have developed the IT infrastructure and organized many training programs. We also have a financing program for sales agents and managers through which we provide financing for up to two years so they can set up their own business in life insurance distribution,” says Theodor Alexandrescu, general manager of Alico Asigurari Romania. Coman of ING Asigurari de Viata says that the company intends to continue to increase the benefits and transparency for its customers, improve the sales process and maintain its current market share and leader position. She adds that there is an increased need for financial consultancy from ING’s customers. “People need to be sure that their needs are understood and addressed correctly. Studies conducted by ING Asigurari de Viata show that one out of three Romanians would be interested in meeting a consultant to have their financial needs analyzed,” adds Coman.
Accentuating the positive While 2010 was a hard year for many
Courtesy of Platinum Asigurari
“The decline of the insurance market was brought about mainly by the regression of the car segment, which unfortunately is the driving force for the Romanian insurance market, making up over 60 percent of the total sales,” Marie Kovarova, GM Generali Asigurari.
INSURANCE 11
Anca Babaneata, CEO of Platinum Asigurari players on the market, several managed to register positive financial results. Generali Asigurari posted an increase of 8 percent on the life insurance segment last year, reaching a RON 91 million volume of gross written premiums. Unit-linked products posted the best performance (an increase of 19 percent), followed by traditional individual insurance (a 7 percent increase) and group ones (a 3.5 per-
cent increase). “The consolidation of our portfolio of customers and lower cancellation rate of life insurance policies were two of our major achievements in 2010,” says Kovarova of Generali. She adds that overall, the company posted a total volume of RON 440 million in gross written premiums in 2010, down 13 percent on 2009. » continues on page 12
12 INSURANCE
www.business-review.ro Business Review | June 20 - 26, 2011
Courtesy of Generali Asigurari
Marie Kovarova, general manager of Generali Asigurari offer reasonable products to its target » continued from page 11 customers. As for Allianz-Tiriac Asigurari, Bir In addition, Alico Asigurari Romania says it remained one of the top insurers posted an increase of 7.07 percent in its in Romania, with a 2010 market share of income from gross written premiums last 14 percent for non-life business and around 5 percent on the life segment. year on 2009, according to audited financial results for 2010. Its value of pre“Based on our 2010 results, we remain the miums exceeded RON 205 million, and it most important Casco insurer, with a notched up a net profit of RON 69 million. market share of around 20 percent, the number one property (fire and associat- “The growth we posted last year was supported by projects launched in 2009 ed dangers) insurer with an estimated 17 when we extended the distribution lines percent market share on this line of and types of products in order to stop business, and on general liability, with approximately a 16 percent market share,” customers from becoming too blasé about satisfying their insurance needs. says the CEO. Both in 2010 and before, our projects He goes on, “We registered a decline were based on a strategy of profitable in gross written premiums which was growth, staying open-eyed to the opmainly driven by the Casco insurance portunities of the market,” says Alexansegment. But we still took measures in drescu of Alico. order to better control our portfolio deLast but not least, ING Asigurari de Vivelopment. We carried out a detailed reata posted a gross profit of RON 46.47 view of our product portfolio, to evalumillion last year compared with RON 92.7 ate whether our products were in line million in 2009. “This result was in line with the crisis environment and we tried with our objectives and was influenced to see if there was a need to adjust some by our projects launching new products, of the products to our customers’ abiliextending our distribution channels, inty to buy.” The businessman adds that the creasing the benefits and services for our company had to focus on profitable segcustomers and investing in the significant ments of the portfolio and give up othdevelopment of activity from the third er loss-making lines to preserve pillar,” says Coman. profitability and still have room to
Courtesy of Alico
Theodor Alexandrescu, general manager of Alico Asigurari Romania
www.business-review.ro Business Review | June 20 - 26, 2011
INSURANCE 13
Life Insurance Portfolios CLAIMS**
LIFE INSURANCE PRODUCTS PORTFOLIO
YEAR ESTABLISHED LOCALLY
CONTACT
TOP LOCAL EXECUTIVE
RANK
GROSS WRITTEN PREMIUMS
COMPANY
1
ING Asig. de Viaţă
128.56
3.62
Classic life insurance; supplementary life insurance; marriage and birth insurance; unitlinked insurance; permanent health insurance; capitalization insurance
1996
021. 402.85.80; asigurari@ing.ro
General Manager : Cornelia Aurelia COMAN
2
BCR Asig. de Viaţă
73.01
-
Life insurance – annuities
2005
021.206.90.40; office@bcrasigviata.ro
President: Florina VIZINTEANU
3
ALICO România*
43.94
-
Classic life insurance; marriage and birth insurance; capitalization insurance
1998
4
ASIROM
22.02
18.40
Classic life insurance; annuities; supplementary life insurance
1992
021-317.81.36, cabinet@asirom.com.ro
5
ALLIANZ-ŢIRIAC
21.85
-
Classic life insurance; marriage and birth insurance; unit-linked insurance; capitalization insurance
2001
021.208.22.22; relatii.publice@ allianztiriac.ro
6
GENERALI
21.64
2.93
Classic life insurance; supplementary life insurance; unit-linked insurance; permanent health insurance; capitalization insurance
1993
021.312.36.35; info@generali.ro
7
AVIVA
21.05
2.26
Classic life insurance; supplementary life insurance; unit-linked insurance
1999
021.203.83.00; office@aviva.ro
8
GROUPAMA
14.82
5.69
Classic life insurance; capitalization insurance
1994
021.305.80.00; office@groupama.ro
9
GRAWE România*
12.83
-
Life insurance – capitalization insurance
1996
021.312.60.03; office@grawe.ro
10
EUREKO
7.42
0.80
Classic life insurance; annuities; supplementary life insurance; unit-linked insurance; capitalization insurance
2001
021.202.67.00; asigurari@eureko.ro
Chief Executive Officer: Frans van der ENT
11
BRD Asig. de Viaţă
4.37
-
Life insurance – classic life insurance
2009
021 408 29 29; office.brdasigurarideviata@brd.ro
General Manager: Philippe Serre
12
AXA Life Insurance
4.35
0.85
Classic life insurance; annuities; supplementary life insurance; marriage and birth insurance
1997
021. 408.91.00; office@axa-asigurari.ro
13
ERGO Asig. de Viaţă
4.04
-
Life insurance – classic life insurance
2007
031.224.86.00; office@ergo.ro
14
ASTRA
3.53
0.50
Classic life insurance; annuities
1992
021.318.80.80; office@astrasig.ro
15
EFG Eurolife Viaţă
2.93
1.04
Classic life insurance; annuities
2007
021.320.06.40; asigurari@eurolife.gr
16
AEGON Asig. de Viaţă
1.11
0.01
Classic life insurance; annuities; unit-linked insurance
2008
0264.224.200; info@aegon.ro
17
GARANTA
0.97
0.53
Classic life insurance; supplementary life insurance
1997
021. 307.99.71; info@garanta.ro
18
SIGNAL IDUNA
0.12
-
Classic life insurance; annuities; supplementary life insurance; marriage and birth insurance; unit-linked insurance; permanent health insurance capitalization insurance
2008
021.322.00.71; office@signal-iduna.ro
President: Leslie J. BREER
19
ATE Insurance
0.03
-
-
2004
021.310.68.11; office@ateinsurance.ro
President of Administration Board: Ioannis PAVLIDIS
20
ARDAF
-
-
-
1992
021.208.41.00; h.o@aiglife.ro
021.317.12.20; office@ardaf.ro
General Manager: Theodor ALEXANDRESCU President: Mariana DIACONESCU General Manager: Rangam BIR President: Marie KOVAROVA CEO Romania: Mihai POPESCU General Manager: Sanda NICOARA General Manager: Peter KASYK
President: Violeta CIUREL General Manager: Josef ADELMAN President: Radu MUSTATEA
General Manager: Anita NITULESCU General Manager: Silvia SIRB General Manager Gerasimos GAZIS
President: Stanislav UMA
GWP and CP Source: Insurance PROFILE - Currency conversions were calculated for an average exchange rate of: RON 4.2373/EUR - in 2009 RON 4.2099/EUR - in 2010. Sums are expressed in EUR million. * estimation, ** includes gross paid indemnities, amounts paid for maturities and surrenders.
www.business-review.ro Business Review | June 20 - 26, 2011
14 FOCUS SPIRITS
Black market waters down local spirits producers’ profits After the market contracted by 17 percent in 2010, Romanian spirits producers – legal ones that is – are facing another flat year as consumption is showing no signs of picking up so far. But as they struggle, the black market is reaching new heights, while the authorities are turning a blind eye, legitimate players complain. ∫ SIMONA BAZAVAN
STOCKEXCHANGE
“It is becoming very hard for any foreign investor, in our case our German shareholders, to grasp the local market situation. It is difficult to explain not only why tax evasion hasn’t been taken care of in so many years, but why it has instead been increasing exponentially lately! One can’t be surprised by investors’ lack of interest in the local spirits industry,” Emil Popescu, president of Romanian spirits producer Zarea, told Business Review. The economic crisis has generated a vicious circle for the country’s spirits and alcohol industry, reducing consumption and at the same time taking the black market to new heights. “The hike of excise tax in June 2010 and then VAT have almost doubled the shelf price of some products, which is very hard to justify to consumers who in most cases have seen their income go down. This created a very good environment for tax evasion,” Popescu said. Over the past eight years tax evasion with alcohol and spirits has led to no less than 80 percent of Romanian spirits producers closing their businesses, with the loss of about 7,000 jobs as well as approximately EUR 3.3 billion (EUR 4.5 billion with VAT included) to the state budget, according to Romulus Dascalu, president of the Employers Organization of the Alcohol and Alcoholic Beverages Industry (Garant). Tax evasion amounted to about EUR 700750 million in 2010 which accounts for a staggering 70 percent plus of the local market, Dascalu announced earlier this year, accusing the authorities of turning a blind eye. “The economic climate of the last few years has fostered tax evasion and boosted obscure companies while large manu-
Keep your spirits up: producers are seeking solace on a sinking market facturers have lost ground. Illegal practices, such as selling spirits at a price that doesn’t even cover the excise tax, by companies that have also caused their own insolvency, must no longer be tolerated,” he said. The situation has only got worse in the past couple of years but 2011 could see a new record. The number of excise stamps for spirits released by the authorities decreased from about 456 million in 2003 to 151.5 million in 2009 and fell further to 136 million last year. In the first two months of 2011, the number of spirits excise stamps dropped to 9 million, from 17 million in Jan-
uary-February 2010, Dascalu warned. The Garant president underlined that improving the law and making fiscal inspections more efficient are crucial in order to protect the remaining legal producers on the market. Not paying the excise tax translates into a shelf price that is as much as 50 percent cheaper than it should be, making it very difficult for any producer that respects the law and pays the tax to be competitive, Popescu said. In his opinion the drop in consumption, tax evasion and imported spirits that don’t
meet EU laws are the main issues that local producers are facing. “Although the plunge in consumption is due to the general international context and is affecting most industries, for the latter two issues there are a multitude of solutions that could be implemented. Unfortunately we’re seeing a total lack of interest in doing that,” bemoaned Popescu. Gyuri Eperjessy, commercial director of Alexandrion Grup Romania, added that the government’s commitment to taking drastic measure against a black market which he estimates at 25 percent for brandy and
www.business-review.ro Business Review | June 20 - 26, 2011
Tax dodgers diversify While some of the tax evasion methods are the same as always others have been improved in the last couple of years, according to Romulus Dascalu, president of the Employers Organization of Alcohol and Alcoholic Beverages Industry (Garant). These methods include: partial registration either of the final products or raw materials using fake excise stamps l fictitious exports l selling alcohol products which are falsely registered as cosmetics (after-shave and mouth-wash), alcohol-based antiseptics or industrial and technical alcohol l entering insolvency in order to avoid having to pay various taxes l
30 percent for vodka is necessary if the firm is to reach this year’s objectives. So far, 2011 has not brought good news for the spirits market. “Judging by internal data we can say that the market has dropped quite a lot since the beginning of the year. (…) The general economic instability is fuelling a sense of panic and so far there have been no actual measures that would stimulate consumption,” said Popescu. As in 2010, prices and promotions will save the day, or at least underpin sales volumes. “I believe that quality matters the most. (…) Promotions and other measure that support the brand and sales follow. On
FOCUS SPIRITS 15 a market that is uneducated and uniformed about quality, price matters too,” Alin Ursu, manager of Angelli Spumante & Aperitive, told BR. The company reached a turnover of approximately EUR 15 million last year, although profit was down, and plans to increase it by EUR 1 million in 2011. Angelli Cherry, Angelli Cuvee Imperial, Angelli Cocktail Pesca and Angelli Vermut are among its most popular brands. The firm saw its exports grow to 10 percent last year and plans to raise their share to 18 percent in 2011. “We intend to enter new markets. So far we are performing very well in Hungary, Italy, Spain, Turkey and Cyprus,” said Ursu.Zarea is also putting foreign markets on its to-do list. Most of its production is for the domestic market but the company plans to increase exports to Spain, the UK, Germany, Cyprus, the Netherlands, Japan and Thailand and to enter new markets, said Popescu. Zarea’s target for 2011 is to maintain its sales volumes even though the market dropped by 15 percent in the first quarter. “Last year our turnover amounted to RON 71 million (e.n. approximately EUR 17.3 million) and for this year we estimate a decrease of no more than 5 percent which is an acceptable result considering the market conditions,” said the general manager. Some of Zarea’s most popular brands include the Zarea, Athenee Palace and Dorato sparkling wines, brandies like Milcov and Arad, Corrido sangria and the Florentino liqueurs. The company has also launched several brand extensions and this year has included the Stalingrad vodka brand in its portfolio.
simona.bazavan@business-review.ro
www.business-review.ro Business Review | June 20 - 26, 2011
16 LINKS
Blogging becomes big business Blogging has been generating bucks on the local market as its top exponents get recruited by companies as brand ambassadors or even social media specialists. They are regarded as key opinion formers of the younger generation and their blogs often successfully compete with the country’s most renowned publications in terms of readership. ∫ CORINA DUMITRESCU Alexandru Negrea, who has been posting online since 2006, is acknowledged as one of the most prominent bloggers in Romania. His site, www.alexandrunegrea.ro is about social media and “people”, as he describes it. Negrea became a social media manager at Banca Comerciala Romana in October 2010. He says that the job “was never a goal for me, but I was happy to be validated in that way. The blog teaches you to socialize with people on the internet and to interact with them offline. If you are sufficiently driven and passionate, you can gain marketing and communication skills, which are essential for a social media manager/specialist/expert.” Negrea is one of the few lucky enough to make a living from his site. “My main source of income is my blog (through sponsored articles, banners, special campaigns). Recently I have expanded, towards consultancy and workshops, among other things. The average income from blogging in Romania is insignificant: from a total of 60,000 blogs, there are a maximum of 100 marking over EUR 100 per month,” he tells BR. One of those 100 is the brainchild of Cristian China Birta, a former journalist and now a consultant and online entrepreneur, who writes www.chinezu.eu. He has been active in social media for four years and estimates the local blogosphere at a total value of around EUR 1 million. To him, the blog has also been an important aspect of his professional life. “I use the Chinezu brand to obtain consultancy contracts and reach faster and from a different position key people from certain companies, with whom I can develop campaigns. My strategy is simple: I give the example of my accomplishments with the Chinezu brand and the ‘trust me, I know what this is all about’ speech,” Birta says. He lists the most important sources of income for a typical blogger: “advertorials (which are not as ‘dry’ as those in the press, but leave room for the blogger’s style), banners and event presence. All these are differently ‘wrapped’, depending on the client, campaign or targeted goals.” The writer’s average income per month from blogging is EUR 1,832, and he also has other paid work. Birta predicts that in a couple of years, the number of people able to live just from blogging will double, or even triple. But for now, some of the most prominent names in the game still do a day job. Bobby Voicu, of bobbyvoicu.ro, who is a well-known local online entrepreneur, was recently named general manager of Intact Interactive, the online division of media trust Intact Media Group. He says that companies are now turning to blogs
Dan Santimbreanu, Siemens Romania
Cristian China Birta
year is EUR 1 million, including spending on managing Facebook pages and some collateral projects. As for personal earnings, my ‘guesstimation’ for an A-list blogger is somewhere between EUR 1,000- 4,000 a month. On average I'd say between EUR 1,000- 2,000 monthly.” IT may have traditionally been seen as a male-dominated sphere, but women also rank among the Romanian blogging elite. Miruna Molodet started as early as 2004 at what is now www.anurim.com. The blog has helped her in her career too, she says. “It was one of the factors that brought me into the online media without me pointing it out on a CV (back then I didn't figure it would matter to anyone). However, the blogging experience alone is not enough to make you a social media person. (…) It is valuable since companies hiring such a person get an important insight into this environment. Right now things are described in terms of ‘them’ (people on the internet) and ‘us’ (companies). I think they feel that one of ‘them’ is an important asset for their operations.”
Blogging – the end of journalism?
Alexandru Negrea
“The blogging experience alone is not enough to make you a social media person. (…) It is valuable since companies hiring such a person get an important insight into this environment. Right now things are described in terms of ‘them’ (people on the internet) and ‘us’ (companies). I think they feel that one of ‘them’ is an important asset for their operations.” Miruna Molodet
Cristian Manafu for recruitment purposes. “I don't think any of the bloggers that started five-six years ago thought of the blog as a job finding tool, more as a contract/partner finding tool, since most of the bloggers were people that had other businesses, using blogging for marketing and personal promotion. I think blogging (especially done as a profession or an income generating activity) prepares a person for social media, but it is not sufficient in order to be called a specialist.” Another top blogger with a day job is Cristian Manafu, a former business journalist, now a business-to-business events organizer and active blogger at www.manafu.ro, who is also considered one of the most influential people in social media. He outlines how his blog has aided him in his career. “I am an entrepreneur. I mainly look for clients. My blog helped me start a new business. I became a social media trainer and I teach big companies how to use social media.” Manafu offers his view on the value of the local blogosphere and the average income of a blogger. “My estimation for this
Numerous doom-laden voices predict that blogging will spell the death of the print press in the years to come. Birta disagrees, arguing, “The online environment does not overlap traditional media. It does ‘steal’ a bit from TV, print and radio, but it isn’t in direct conflict with them.” He adds that blogging is also an important communication tool for journalists, as many of them have started their own blogs, and so the two environments somehow become complementary. Manafu believes that traditional media are losing credibility nowadays. “It's about people trying to meet their need for information in ways media aren't able to deliver anymore. Everything happens so fast these days that blogs are sometimes the first source of information. Moreover, some people are looking for personal opinions and no longer believe the news they get from big media outlets.” However, he adds his voice to those who doubt that traditional media will be supplanted by online competition. “Television is here to stay for a long, long time, even if it becomes more ‘social’ and integrated with computers and mobile phones. Print will also stay. Many titles will disappear, but I believe for at least several years, several good years, we'll prefer to retain the touch of a newspaper and the smell of a magazine.” Molodet sums up the main difference between blogging and journalism. “I believe blogs have become more and more important sources of raw information, opinions and ideas, but right
www.business-review.ro Business Review | June 20 - 26, 2011
now the media is still taking the credit when verified information is concerned. Nevertheless, there are special situations when traditional media takes from social media the information they don't have access to, major events such as plane crashes, protests and suchlike.”
Unbiased blogger or brand ambassador? An important source of income for bloggers is companies who pay them to promote their products. Bloggers are often called upon to test certain products or invited to events where they are associated with certain brands, which are then expected to gain more credibility in the eyes of that blogger’s audience. But how ethical is it for bloggers to endorse certain products, when they are being paid to do so, a fact that is often omitted? Negrea responds, “I only work with brands that I actually believe in, on that given campaign, related to the promoted service/product, or overall, on their products/services in general. There are no ethical issues, as long as this rule is respected. To me, indicating a piece is sponsored means not taking responsibility for what you write about it.” Birta adds, “I only choose campaigns for brands that I have nothing against. (…) I only accept campaigns that do not constitute an issue for me or for my readers.” Taking a different stance to Negrea, Birta says that he always announces a paid campaign on his blog. Manafu tells BR, “I usually choose big brands and creative campaigns. I like to believe that I am in their target audience and can easily become their customer. In
LINKS 17 “I don't think any of the bloggers that started fivesix years ago thought of the blog as a job finding tool, more as a contract/partner finding tool, since most of the bloggers were people that had other businesses, using blogging for marketing and personal promotion. I think blogging (especially done as a profession or an income generating activity) prepares a person for social media, but it is not sufficient in order to be called a specialist.” Bobby Voicu fact, I have had some cases where I ended up being a client. More and more bloggers find ways to mention their involvement in brands' campaigns. I mark every sponsored story with a tag and I’ve started a page with the history of all the campaigns I’ve done.” He adds, however, that there are exceptions. “There are cases where is better not to mention you are a supporter.
Imagine a teasing campaign. Why spoil it thenticity of the communication through by telling the world ‘this is a sponsored social media tools. Everybody says or campaign’? But I agree that usually we writes what he or she believes or feels. need to have some kind of mention.” This is why this type of communication Alina Constantinescu, who blogs enjoys of a lot of credibility from the auon www.alinaconstantinescu.ro, gives dience.” Around 30 percent of the budgher reasons for choosing a certain prodet for a recent campaign that Siemens uct to endorse, which focus on the origheld with the aid of bloggers, Siemens inality of the campaign she is charged Amazing Race, was spent on this area. with. Andreea Leonte, PR director at Mc“Most of the time, I need to like the Cann PR, explains why agencies use product/service, but there have been bloggers in campaigns for their clients. times I really liked the idea (being origi- “Bloggers, more than journalists, may dinal, provocative, mysterious) and then I rectly express their opinions and not mentioned that I do not consume that just provide a simple and objective perproduct, but I was seduced by its camspective on events.” paign.” She adds, “Bloggers are selected for Voicu argues that the readers are the their influence and authority, their conmain measurement tool for a blogger tent, audience and rate of involvement, and they may not be too easily misguidbut also with regard to the brand itself.” ed by dishonest communication. “The On the matter of ethics, Leonte mentions audience will punish them for any ‘faux Birta’s scheme, Blogal Initiative, inpas’ so bloggers that fail to meet the extended as a professional association for pectations of their readers will, in time, bloggers, which will also come up with a fade away.” Molodet puts the letter “P” code of ethics for the profession. next to articles about endorsed prodIuliana Stere, digital media manager ucts and also believes that readers notice at Initiative, does not believe that the use when the presentation of a product is not of a blogger as a brand ambassador raishonest. es ethical problems, since there are numerous means of indicating a post has been bought. What’s in it for companies? “There are no methods through which Companies and communication agenone can make sure that the review that a cies also gave their reasons for hiring blogblogger posts is a positive one. It would gers as brand ambassadors. Dan Santimbe like trying to control social media (…). breanu, head of corporate communicaWhat we always aim to have is a review tions at Siemens Romania, says, “Colthat is correct in approach and as relevant laborating with a blogger offers you the as possible,” she concludes. chance of generating conversation and debate on a given subject.” However, he adds, their feedback cannot corina.dumitrescu@business-review.ro be conditioned. “And in this lies the au-
www.business-review.ro Business Review | June 20 - 26, 2011
18 INTERVIEW
Enterprise Investors tips IT, retail, manufacturing, finance Cristian Nacu, president of South Eastern Europe’s Private Equity Association (SEEPEA) and partner in Polish investment fund Enterprise Investors provides some insight into the activity of both organizations, their plans for the future and the hot investment domains for private equity funds on the local market. ∫ OTILIA HARAGA
icy is to announce it after we have carried out the transaction.
Give me an example of when SEEPEA has lobbied the Romanian authorities during your term? Recently, the EU introduced a law for the regulation of the private equity and hedge funds market. This must be implemented by all member states in their national legislation. We will try to contribute to the creation of this legislation, which should be done in conformity with the EU law but also adapted to the Romanian context. However, the main directions have not yet been defined.
What would be interesting for an investment fund on the IT market in Romania? There are many areas. The difference that the growth of the internet and the appearance of iTunes, iPhone and iPad have made is that it allowed any smart programmer with entrepreneurial spirit to become an international player overnight. Everyone is just a click away from the world market. There are tens of thousands of applications on iTunes, and some of them are Romanian applications. There are also opportunities in e-commerce, and other types of services such as financial services.
What are the criteria for a company to become a member of SEEPEA? It must be an investment fund which operates in the territory of eight countries that are part of SEEPEA: Romania, Bulgaria, countries from the former Yugoslavia. They can also be suppliers of services, consultancy firms, law firms or audit firms. More recently, we have been trying to attract banks as members.
How quickly does EI make an exit from a firm? The average rate of keeping an investment for us is four to four and a half years. Recently, this has been even longer because the crisis delayed some exits, so we may keep firms even for five or six years. We only want to sell when the business can turn in its deserved value and this can depend on the circumstances. In theory, it’s four to five years, but in practice it can go up to seven years. Of course, Romania was more affected by the crisis than elsewhere, but the difficult times were everywhere. 2009-2010 were poor years all over Europe and many exits were delayed even there, so the situation in Romania is not different.
What domains would be hot for a private equity firm in Romania? Private equity firms generally focus on sectors in the consumer industry. They either offer financial services for the end user, are manufacturers or retailers. Generally, our firms are linked in one way or another to the end user. This is also because Romania is a relatively large market compared to the neighboring countries, which makes it more attractive, but also because these firms are generally more dynamic.
Photo: Laurentiu Obae
What is EI’s investment budget for 2011? There is no allotted budget at the level of each country. Traditionally, let’s say we manage to invest up to EUR 150-200 million a year. From this sum, there are sometimes some investment projects in Romania. So far, over the last six years, we have invested around EUR 200 million in Romania, which is a ratio of probably 20 percent of the funds invested in the entire region. We invest from two funds: one is a buyout fund which buys major stakes in large companies, which total EUR 20-25 million. From this fund, there is around EUR 60-70 million left to invest in the region. The other is a venture capital fund where there is EUR 50-60 million left to invest. This fund generally targets minor stakes in small companies. Investments made from this fund are between EUR 1 million and EUR 5 million. In total there are ten target countries. Romania is the largest investment portfolio after Poland
by proportion of the total funds that have been invested so far.
tive to us. The financial crisis was another reason.
When EI decided not to invest in certain projects anymore, what were the reasons? There are many reasons. Most of the time, we did not agree on the price. Other times, the business did not perform. Usually, it takes more than six months from the moment you start a transaction until it is concluded. Sometimes, the business did not perform as expected in that time span and ceased being attrac-
What projects has EI invested in over the past year or two? What now? In the past year we have only invested EUR 3 million in Smartree, which we bought in 2010. A year earlier, we bought the Profi store chain. These were the transactions we have made over the last 12-14 months. Our investment rate is probably two companies a year. We are looking at firms in retail, IT, manufacturing and financial services. But our pol-
What profits does EI make from an investment? There are companies which we sold at a profit that was eight times the invested sum, others that we sold for a much lower profit. On average, we get back two and a half to three times the money we invest after this period of four or five years.
otilia.haraga@business-review.ro
CV Cristian Nacu Cristian Nacu was appointed president of SEEPEA in December 2010. He was previously named partner in Enterprise Investors in 2007, having joined the firm in 2005 as vice-president and head of the Romanian office. Prior to that, he spent six years as investment officer at the International Finance Corporation. He also worked for two years for the Romanian government, completing more than 25 privatizations.
www.business-review.ro Business Review | June 20 - 26, 2011
CITY 19
RESTAURANT REVIEW
RESTAURANT SELECTION Business Review gives you a selection of top Bucharest restaurants. You can check the full-length versions of all the reviews by our resident restaurant critic, Michael Barclay, on our website www.business-review.ro.
Photo: Laurentiu Obae
La Dud Morgan 7 Sperantei Str. (Pta Rosetti area) ANCA IONITA La dud (At the Mulberry Tree) has for many years been one of the most crowded spots on Bucharest’s open air, summer restaurant map. The main attraction is the huge, almost one hundred-year-old mulberry tree, with an enormous green crown that shades the entire surface of the openair terrace, located at the intersection of two narrow streets in the Pta Rosetti area. After more than half a year, the summer terrace/restaurant has reopened as a high-end venue, with new ownership, new design and a new menu. To outline the change, the new owners have added the name “Morgan” (as in Morgan Motor British company, since one of the owners is the proud owner of a vintage model which he keeps parked just in front of the entrance). The heavy leafy roof and an intricate mist fan system already recommend the classy-looking terrace for the hot days and evenings of a Bucharest summer. Equal-
ly enjoyable is the upgraded menu based on international cuisine, which is divided in two chapters: lunch (12:00-16:00) and dinner (18:00-23:00), with most of the Romanian delicacies, from an excellent trout soup (RON 11) to “sarmale in foi de varza cu mamaliguta” (RON 25) White turkey meat is the star ingredient, prepared in all formats, from soup to mushroom stew and schnitzel. Several nice surprises like the Pleurotus mushroom soup (RON 11) and the Argentinean Rib Eye Steak (RON 49) are also on the menu. Make sure you order Morgan Lemonade, which comes with mint, lime and honey (RON 16), one of the best I’ve tried so far in Bucharest. In terms of prices, the restaurant is in the lower high-end area, with a three-course meal without wine costing around RON 75. The wine list is generous, with white, rose and red wines coming from the local Crama Basilescu – Eclipse. So is the bread, freshly prepared by a small neighborhood bakery. And, for the chilly evenings, a lavishly baroque interior restaurant, with comfy armchairs and sofas, and intimate booths, is ready to be discovered.
anca.ionita@business-review.ro
FROM OUR READERS La Union review From the very beginning, the author of this article deviates from the purpose of the review, which should be a subjective opinion about a restaurant, and starts a malicious debate about a nation and culture they scarcely know. My reaction is not dedicated to Romanians, they know very well who Ion Luca Caragiale was, but to all expats living in Romania, in Bucharest, who are often told lies about things they know little. I would like to say a few words to the author of this “review”, despite the fact that I believe they already know the true facts and intentionally wrote the article in that way. The value of a person should not be measured by how much that person was promoted in the international environment, but by their deeds. Taking into consideration that BR has accustomed its readers to a specific degree of professionalism, I believe that they deserve an apology. Thank you. Cosmin Scutaru (telecom engineer)
Oh my god, the beginning of this article is truly outrageous!! Yes, Caragiale was a great man, and guess what, they even named a street after him!!! Honestly, this article is an offense to our "some kind of cultural heritage". Totally dislike it!! Madalina BR responds: Thanks to our readers for taking the trouble to send us their thoughts on this review, which obviously generated quite a strong reaction! Our long-term restaurant reviewer, Michael Barclay, is well known for his lively and provocative style of writing. His views do not reflect the official position of BR. We always welcome your views – whether positive or negative – and we hope that you will continue to engage with us in this way and share your thoughts in a spirit of open dialogue and exchange.
Arcade Cuisine: International Address: Ion Cantacuzino 8 Reservations: 0753 999 333 www.restaurantarcade.ro Over the last nine years, Arcade has become a gastronomic institution in this town. It is best known for its fabulous location and vast summer terrace, but you really should go there in winter to enjoy its warm, homely villa ambiance. This is a top quality, sophisticated chophouse that can compete with the best alternative restaurants in town which could cost twice the price. Their signature dish is Pork Osso Bucco, a deviation from the original beef version. Simply superb. Bistro Epoque Cuisine: French Address: 17C Intrarea Aurora Street Reservations: 021 312 32 32
www.epoque.ro The Bistro Epoque is a smart-casual restaurant offering guests gourmet French cuisine from its master chef Guy Martin. Owner of the restaurant Le Grand Vefour in Paris and holder of two Michelin stars, Martin creates the menus which include a variety of vegetarian dishes. Divan Cuisine: Turkish Address: Franceza 46 Reservations: 021 312 3034 www.thedivan.ro Expect the usual suspects of hummus, eggplant puree, spiced tomato and so on. They have a larger selection of kebabs on offer than their competitors and this includes beef, lamb, beef and lamb combo, chicken and marinated meat stuffed in an eggplant. And unlimited hot fresh bread. It is vastly superior to other Turkish eateries and has a larger menu. Heritage Cuisine: Fusion Address: Polona 19 Reservations: 021 210 8850 www.heritage-restaurant.eu After five years of making mistakes along with constant changes of management, chefs and directors, it appears that Heritage has finally got it right! They brought the mountain to Mohammed by importing a Michelin-starred chef. The menu is
fixed (rather than a long, tedious, rambling a la carte which so many restaurants choose here) with three variations: ‘Classic’, ‘Evolution’, and ‘Vegetarian’. And in a catalogue of surprises you will see that for the first time, Heritage is affordable. Gone are the crazy prices of the past, and as proof there is the entry level of one main course at EUR 59, including five luxurious tapas dishes to start, and a medley of chocolate lollipops at the end of your meal. It is cheaper still if you share a three- or four-course meal with your friends. La Veranda Cuisine: Seafood Address: Crowne Plaza, Poligrafiei 1 Reservations: 021 224 0034 www.laveranda.ro Here we have a House that challenges you with a choice of preparations, and for the first time ever, they even offer you a selection of fish sauces. The standards of the House have been raised to a point that the Crowne has well and truly regained its culinary crown. The finest fish restaurant in the land, and Chef Ashlie will be delighted to come to your table to answer your questions or to give you cooking advice. Osho Cuisine: American: steak and grill Address: Primaverii 19 Reservations: 021 568 3031 www.osho-restaurant.ro They modestly call themselves a steakhouse, but it is much, much more than that. If you enter it from the front end of the building, you will find yourself in a shop which sells all of the chophouse’s products, ‘over the counter’ at retail prices. This includes not only their extensive range of meat products, but an array of up to 20 Italian cheeses and salamis. Add to that a rich list of French and Italian fine wines, and you have a ‘deli where you can dine’. Taverna La Zavat Cuisine: Greek Address: Popa Nan 16 Reservations: 021 252 2956 www.taverna-lazavat.ro The second best fish restaurant in town. It is relatively cheap and has a comprehensive range of fish on its menu. The location is a bit of a dump, though this keeps the prices low. Go now and test the chef by asking him to go “off piste” from his menu and alter it for you. I bet he will do so.
www.business-review.ro Business Review | June 20 - 26, 2011
20 CITY FILM REVIEW
FESTIVAL
Classical music-outdoor soundtrack at Bucharest Music Film Festival After the success of Mozart Fest in 2006 and the subsequent Vienna Music Film Festival, ArCuB, the Center of Cultural Projects for Bucharest City Hall, organizes the Bucharest Music Film Festival. Now on its sixth run, it will take place between June 24 and July 2, during which time George Enescu Square will become the capital’s center for classical European music, dance and opera. Among the performers that will take to the stage at the festival are: Horia Maxim, Filarmonica Oltenia din Craiova (the Oltenia Philharmonic from Craiova), Cvartetul Artmusik (the Artmusik Quartet), Orchestra Nationala Radio (National Radio Orhestra), Trio Veritas, Laura Pauna, Grupul Vo-
cal Acapella (Acapella Vocal Group), Vadim Palmov, Toma Popovici, Horia Mihail, Camerata Regala (the Royal Camerata), The Ro and Orchestra Sinfonia Bucuresti (Bucharest’s Symphonic Orchestra). Access to the event is free of charge. The organizers say that George Enescu Square was chosen as the festival’s location to highlight to Romanians the cultural importance of and possibilities offered by public spaces. Corina Dumitrescu The space is open for public access between 11.00 and 23.00 on every day of the event. For the Bucharest Music Film Festival program, please access business-review.ro/city.
A long way from Montana: Joe Wright’s Hanna is provocative, refreshing and funny
Hanna ∫ DEBBIE STOWE First, a warning: do not confuse this film with Hannah Montana. If you pitch up expecting to see a fluffy flick about Miley Cyrus living a double life as a pop star, this blood-soaked tale of a teenage assassin is likely to surprise you and possibly scar your children for life. Hanna is about as far from her Montana namesake as it is possible to be. Which is an entirely good thing, as Joe Wright’s film is edgy, stylish, unusual and captivating. From the first scene, where Hanna (Saoirse Ronan) coolly stalks, kills and guts a stag for dinner in the snowy Finnish forest, it is clear this is not standard Hollywood fare. The 16-year-old lives alone in a remote cabin with her father Erik (Eric Bana), who has taught her umpteen languages as well as lethal fighting skills. It’s all in preparation for a mysterious mission, to kill CIA operative Marissa Wiegler (Cate Blanchett). The film follows the two females’ attempts to find and terminate the other first. Of course, the Atonement director is not on wholly new cinematic ground. Luc Besson’s 1994 film Léon also centered on a teenage girl learning the assassin’s trade from a father figure. Like most post-Bourne spy thrillers, Hanna
editorial@business-review.ro
Courtesy of Arcub
Directed by: Joe Wright Starring: Saoirse Ronan, Cate Blanchett, Eric Bana On at: Baneasa Drive in Cinema, Cinema City Cotroceni, Cinema City Cotroceni - Sala VIP, Cinema City Sun Plaza, CinemaPro, Hollywood Multiplex, Movieplex Cinema, The Light Cinema
owes an obvious stylistic debt to that trilogy, with shootouts and chases set against gloomy Berlin tenement buildings and operatives taking public transport on grey days. But here the plot is also very Bourne again, involving a secret black ops program of which the CIA now wants to destroy all evidence (don’t they always?). There’s also a strong hint of Run Lola Run, a wonderfully quirky German film of 1998, which is echoed in Hanna’s techno-thumping score (by the Chemical Brothers), sprinting female and computer game aesthetics. But even if Wright did borrow a little, the end result feels novel and refreshing. While the violence will deter some, the action sequences are splendid. Even so, they are almost overshadowed by a superb comic interlude when Hanna joins up briefly with an English family on holiday in Morocco. The adolescent killer’s lack of knowledge of normal teen behavior and family dynamics contrasts hilariously with the middle-class alternative parents (Olivia Williams and Jason Flemyng) and their shallow fashion victim daughter (Jessica Barden), a gem of a part with many of the best lines. The British family is beautifully cast, but the film’s heart is Hanna and Marissa’s enmity. Irish actor Ronan has piercing blue eyes and alabaster skin that chime perfectly with Hanna’s detached innocence (as much innocence as a trained killer can have – part of the character’s complexity and ambiguity). She is exceptional in the demanding role, as is Blanchett, whose glacial baddy channels Cruella de Vil to make one of the more memorable screen villains of recent times. It’s unusual to hang a serious film on a teenager and to make both protagonist and antagonist in an action movie female. Joe Wright has done both with aplomb. Hanna is a killer film, in both senses.
A Midsummer Night’s scene: music, art and design will all be showcased
MIDSUMMER CELEBRATION
Midsummer’s Day celebrated at Minovici Museums Midsummer’s Day will be marked in the orchard of Bucharest’s Minovici Museums, on the night of June 23. On the occasion, art and design exhibitions as well as various artistic performances will take place. The latter will feature dancer and choreographer Razvan Mazilu, ballerina Monica Petrica, musician Cornelia Tihon, actress Brandusa Casandra Mircea, dancer and choreographer Ioana Macarie, actor Silviu Biris, actor Constantin Florescu and the Sound Choral Group, conducted by Voicu Popescu. The photo exhibitions will showcase the works of Luiza Zamora, Flavia Lupu and Serban Bonciocat. There will also be two fashion presentations, by Thea Costa and Elena Perseil. “Sanzienele” or “Dragaica”, the Romanian equivalent of Midsummer’s Day, is celebrated on June 24 and is said to coincide with the celebration of the summer solstice. In local folklore, on the night of Midsummer’s Day, strange phenomena were
reported to happen to people wandering the forests alone at night, such as the skies opening. The term Sanziene is also the name of the Midsummer’s Day fairies. As well as these traditional Midsummer fairies, who make a lot of mischief, the other meaning is a reminder of the scented flowers of Lady's Bedstraw, of which young girls make wreaths and boys cross-shaped braids. In another tradition on Sinziene's night, unmarried girls cut the petals of a thistle and keep it in a glass of water. It is said that the faster the petals grow back on the flower, the bigger the girl’s chances of marrying the man she loves. ∫ Corina Dumitrescu Entrance to the event is free of charge. The Minovici museums are located on Nicolae Minovici Street 3, in the vicinity of the Miorita Fountain (near Herastrau Park). In the event of rain, the Sanziene celebration will be rescheduled.
www.business-review.ro Business Review | June 20 - 26, 2011
CITY 21
VOLUNTEERING
THEATER
Let’s Do It, Romania! prepares for 2011 country cleanup
Chekhov’s The Cherry Orchard, broadcast live from London to Bucharest
A new Let’s do it, Romania! will take place this year on September 24. At the same time as volunteers were being called to action, the results of last year’s effort were officially made public. Over 200,000 volunteers from all of Romania’s 41 counties took part in the clean-the-whole-country-in-just-oneday campaign organized for the first time last year in September, collecting over 55,000 sacks of waste, the results show. Five central authorities and over
Courtesy of The Light Cinema
Courtesy of let’s Do It Romania
Getting the sack: volunteers clean up
2,000 local authorities were involved in the project, along with 1,289 organizers on a national level and 294 partners in logistics, over 350 companies and over 255 NGOs. The idea behind the project came from the Let’s Do It 2008 campaign in Estonia, which, on May 3, 2008, managed to bring together 50,000 volunteers, 4 percent of a population of 1.3 million, with locals being joined by people from all over the world in the initiative. Described by international media as one of the most ambitious volunteer actions in modern times, the project was also a very efficient country branding campaign for Estonia, all for the cost of EUR 500,000 and with the priceless result of getting an entire country clean in just one day. This year’s event in Romania will use a new mapping system, based on areas of approximately 3x3 kilometers each. The goal is to surpass the record set last year and mobilize 500,000 volunteers. Besides its main purpose of cleaning up the country, Let’s Do It, Romania! also aims to increase public accountability and awareness of environmental issues.∫ Corina Dumitrescu
Wanamaker is ‘magnificent’ says the FT The Light Cinema continues to broadcast live operatic performances from New York’s Metropolitan Opera and London’s National Theater, with the latest offering being Andrew Upton’s version of The Cherry Orchard by Anton Chekhov. The HD transmission will take place on
June 30 at the Light Cinema in Bucharest, at Liberty Center. Set at the start of the twentieth century, The Cherry Orchard captures a pivotal moment in Russia's history as the country rolls inexorably towards 1917. This new version of Chekhov's last play follows Upton's acclaimed adaptations of Philistines and The White Guard. His version of The Cherry Orchard won over critics and audiences throughout the world. The Financial Times wrote that “there’s a hard edge to this revival of Chekhov’s masterpiece that is surprising, refreshing, even startling” and that the play conveys a “picture of living, breathing people caught up in something far bigger than themselves.” The Independent highlighted Zoë Wanamaker’s performance, who it says “is magnificent as Ranyevskaya, suggesting to an unprecedented extent the acuteness of this woman's emotional intelligence on the subject of why she is still prepared to choose romantic love over financial prudence.” ∫ Corina Dumitrescu June 30, Light Cinema, Liberty Center, Str. Progresului 151-171.
FILM
First Bucharest Jewish Film Festival underway
Join the
Film, A Film Unfinished, presented at Sundance in 2010, and My Father My Lord, showcased at Tribeca in 2007. The festival will be opened by journalist and war correspondent Adelin Petrisor’s film The Survivor. It tells the story of the only survivor of the Struma, a ship that was transporting Jewish refugees from Romania during the Second World War. While on the Black Sea, the ship was hit by a Russian submarine leaving David Stoliar as the only survivor. The screenings will take place at
editorial team!
A new Let’s do it, Romania! will take place this year on September 24. At the Business opening for a business journalist. same time as Review volunteershas werean being called to action, the results of last year’s l We are looking someone with excellent communicaeffort were officially madefor public. Over 200,000 from all of Rotion skillsvolunteers and knowledge of the English language, and an mania’s 41 counties took part in the educational background in journalism, communication clean-the-whole-country-in-just-onestudies or organized business. day campaign for the first time last year in September, collecting l Duties include covering over 55,000 sacks of waste, the resultspress conferences, writing inshow. Five news central authorities and over dustry and features, conducting interviews and con-
Cinema Studio, Cinema Scala, Green Hours pub and the Romanian Peasant Museum. The event is being organized by NOI Media Print and the Art Promo Cultural Foundation, and is part of a network of over 130 similar events taking place worldwide under the Jewish Film Festival brand. ∫ Corina Dumitrescu Entrance is free for all movies and events, subject to availability, except for the opening gala, where it is by invitation only.
Looking ahead: productions in the film festival focus on Jewish themes and concerns
Marketing & Events Internship Business Review is offering full time internships for the Events and Marketing & PR departments. l We are looking for a final year student or recent graduate, interested in a marketing & public relations career and eager to work in a fast-paced, dynamic environment.
tributing articles to the Business Review website. Please send your CV to simona.fodor@business-review.ro.
Please send your CV to oana.molodoi@business-review.ro.
Courtesy of Jewish Film
The first Bucharest Jewish Film Festival takes place between June 20 and 26. The event encompasses exhibitions and concerts as well as films on subjects associated with Je wish culture and society. The movie selection comprises both premieres in Romania (a total of 29 fall in this category) – including Camera Obscura, Gainsbourg: A Heroic Life, A Room and a Half, Bar Mitzvah, Land of Genesis, Leap of Faith, and Love During Wartime – and garlanded productions – Strangers No More, the winner of the 2011 Oscar for the Best Documentary Short
www.business-review.ro Business Review | June 20 - 26, 2011
22 IN TOUCH WHO’S NEWS
CULTURAL CALENDAR Concerts B’estfest July 1, 2, 3 B’estfest Camp B’estfest returns this year with a new, green, location, in north Bucharest, in the Pipera-Tunari area. Artists: Mika, Skunk Anansie, Flogging Molly, Asian Dub Foundation, LAMB, Pendulum, House of Pain and Hadouken. Bucharest Music Film Festival George Enescu Square June 24 – July 2 ArCuB, the Center of Cultural Projects for Bucharest City Hall, organizes the Bucharest Music Film Festival, now on its sixth run, between June 24 and July 2. George Enescu Square becomes, for nine days, the capital’s center for classical European music, dance and opera. Romanian Athenaeum June 24 19.00 Symphonic concert On the bill: Piotr Ilici Ceaikovski, Serghei Rahmaninov, Musorgski – Ravel Performers: The George Enescu Philharmonic Symphonic Orchestra; conductor – Cristian Badea; soloist Katia Mecetina
Museums June 16 – October 16 Contemporary Art Museum, 4th floor Romanian Comic Book Museum The international events that will take place at the Comic Book Museum will include film projections by the Austrian Cultural Forum and the Czech Center in July and an exhibition by Portuguese artist Eugenio Silva. Autumn will bring a series of events organized by the British Council.
Theodor Pallady Museum (Spatarului Street, 22) Until 31 December 2011 Volume and Perspective in the Graphic Creation of Theodor Pallady This event is part of a cycle of exhibitions started in 2003 with the purpose of placing under the spotlight the graphic work of Pallady, funded by the Serafina and Gheorghe Raut Collection. The collection comprises several canvases by Pallady and 800 drawings and engravings representative of his Parisian period. Cultural Institutes June 24 The Night of the Cultural Institutes in Bucharest Over 50 events are taking place this year in the capital city. Bicycles will be made available by the organizers in partnership with Green Revolution for those wishing to see as many as possible (email office@austriacult-bucuresti.ro for reservations). Among the participants: British Council, Czech Center, Polish Center, Cervantes Institute, Goethe Institute, French Institue, Romanian Cultural Institute.
Hezy Ovadia
Alexandra Teodorescu
the CEO of URBB, has been appointed president of the Brewers of Romania Association. He is replacing Jan Derck van Karnebeek, managing director of Heineken Romania, who has held the position since March 2010. Ovadia has 19 years of professional experience in various managerial positions in FMCG companies, including Carlsberg Group – Israel Beer Breweries. He holds an EMBA from the Tel Aviv University, and has been part of the board of administration of Tuborg Romania.
joins V+O Communication Romania as PR account manager. She has worked for the past three years as a business journalist covering lifestyle, tourism and horeca, and IT&C. She also has experience in communication and event organizing after working as a volunteer for Prime Romania, a student association. Teodorescu is a graduate of the Faculty of Communication and Public Relations from the National School of Political Studies and Administration in Bucharest.
Steven van Groningen is the new president of FIC
Photo exhibitions May 28 – June 24 An A to Z of Romania – Through the Lenses of Expat Women Second edition of the fundraising event is drawing to a close. Organized by a group of amateur female photographers, the exhibition gives a new perspective on Romania, while also raising funds for charity events.
Contemporary Art Museum June 9 - August 28 In between Frames Artists: Adad Hannah, Anetta Mona Chisa and Lucia Tkacova, Bettina Hoffmann, Jason Arsenault, Jerome Delapierre, Perry Bard, Rozalinda Borcila The artworks featured here explore issues such as cultural hybridization,
Cinema June 17 (premiere) Hanna Directed by: Joe Wright Starring Cate Blanchett, Eric Bana, Saoirse Ronan Plot: A 16-year-old raised by her father to be the perfect assassin is sent on a mission across Europe and Africa, tracked by a ruthless intelligence agent. But as well as fighting for her life, Hanna also learns about normal life for the first time. For the full review, turn to page 20. On at: Movieplex Cinema Plaza, The Light Cinema, Hollywood Multiplex, CinemaPRO, Cinema City Sun Plaza, Cinema City Cotroceni, Cinema City Cotroceni VIP, Baneasa Drive-In Cinema
ISSN No. 1453 - 729X
FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALIST Otilia Haraga JOURNALISTS Simona Bazavan, Corina Dumitrescu COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi, Michael Barclay ART DIRECTOR Alexandru Oriean PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu
Photo: Laurentiu Obae
Interactive music June 23-26 George Enescu National Museum 10.00-15.00 Piano maestro Dan Grigore will give piano classes with audience participation. Candidate selection will be through demo audio recordings. Attendance only is RON 40 (20 for students).
broken relational spaces, dissolution of the narrative, critique of representation and political borderlessness.
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
The new board of directors of the Foreign Investors Council (FIC) has elected Steven van Groningen, CEO and president of Raiffeisen Bank, as the president of the organization, the FIC announced last Wednesday. He is replacing Mariana Ghorghe, CEO of OMV Petrom. FIC’s new executive management team also includes Frank Hajdinjak, CEO, E.ON Energie Romania, and Serban Toader, senior partner with KPMG Romania as VPs and Daniel Anghel, tax partner, PricewaterhouseCoopers Romania, as treasurer. Their term will last until May 2012. The members of the new board are as follows: Daniel Anghel, tax partner, PricewaterhouseCoopers Romania, Stephane Batoux, general manager, Danone PDPA, Mihai Bogza, chairman
PUBLISHER Anca Ionita EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Adina Milea SALES & EVENTS Ana-Maria Nedelcu, Claudia Munteanu RESEARCH & SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat
of the board of directors, Bancpost, Mariana Gheorghe, CEO, OMV Petrom, Steven van Groningen, president & CEO, Raiffeisen Bank, Frank Hajdinjak, CEO, E.ON Energie Romania, Farrukh Khan, audit partner, energy & resources industry leader, Deloitte Romania, Grzegorz Konieczny, CEO Romania, executive vice president portfolio manager, Franklin Templeton Investment, Jerome Olive, general manager - Renault Group Romania, chief operating officer - Automobile Dacia, Claudia Pendred, director, Romania, EBRD, Veronica Savanciuc, president & CEO, Lowe & Partners Group, Eric Stab, chairman, country manager, president & CEO Eastern Europe, GDF Suez Energy, Serban Toader, senior partner, KPMG Romania, Jean Valvis, president & general manager, Valvis Holding and Markus Wirth, president of the board of administration, Holcim (Romania). The main topics that van Groningen has proposed for the FIC’s agenda include maintaining the dialogue with the authorities on measures that have proved to have a positive impact on economic growth, increasing the absorption of EU funds, lobbing for more efficient public institutions, implementing measures to attract investments in areas with a high potential for future growth such as energy, agriculture and infrastructure and increasing the number of FIC members as wellas the organization’s future consolidation.
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