INTERVIEW: Cristophe De Korver, managing director of GEFCO Romania, says the company will focus this year on new export destinations in Russia and the Middle East, while pushing to develop its custom services »page 6
ROMANIA’S PREMIER BUSINESS WEEKLY
FEBRUARY 11 - 17, 2013 / VOLUME 17, NUMBER 3
LOCAL FREELANCERS MAKE GLOBAL SPLASH Local freelancers struggle with unfavorable perceptions on the labor market and a limited number of companies willing to hire them »page 10
NEWS
FOCUS
CITY
3Q
Poor prognosis
Valentine-ready?
Gothaer Group’s Jurgen Meisch says the transaction structure of the Platinum acquisition allows the company to eventually acquire a full stake
Difficult access to healthcare services, delayed payment terms and the clawback tax are set to hinder the growth of the local pharma sector
BR rounds up the going out and shopping options for the celebration of St. Valentine and of its Romanian equivalent Dragobete
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BUCHAREST HISTORIC HOUSES HERITAGE HOME EXPERT VALENTIN MANDACHE OUTLINES THE FOUR ARCHITECTURAL BOOMS THAT SHAPED THE CAPITAL CITY’S IDENTITY »PAGE 12
www.business-review.ro Business Review | February 11 - 17, 2013
NEWS 3
NEWS in brief
BUSINESS AGENDA February 12
BANKING Garanti Group Romania revenues up 8 percent to EUR 107 million in 2012 The consolidated revenues of financial group Garanti Romania rose by 8 percent to EUR 106.9 million last year, sustained by gains for Garanti Bank Romania and in the non-banking lines. The operational revenue of Garanti Bank Romania increased by 25 percent year-on-year to EUR 81.7 million. The lender doubled its profit before provisioning to EUR 36.6 million. However, the difficult economic conditions, both locally and internationally, saw Garanti add EUR 25 million in upfront provisions, which led to a loss of EUR 21.6 million on the balance sheet. The loan books was up 10 percent to EUR 1 billion, with fresh demand coming from SMEs.The lender operates 240 smart ATMs across Romania and has over 7,400 POS terminals. The number of branches remained unchanged at 78.
and developing its own. The company estimates it will post gross sales of USD 12.4 billion this year and an EBITDA of USD 195 million.
LEGAL
IT
The turnover of Romanian law firm Bulboaca & Asociatii rose by 27 percent last year to more than EUR 3 million, sustained by the addition of new clients and a 34 percent hike in the billing level. Adrian Catalin-Bulboaca, managing partner of Bulboaca & Asociatii, said the turnover was “well over” EUR 3 million last year, with a profit margin of 50 to 55 percent. Fees remained unchanged in the EUR 150-EUR 300 band. The firm has 31 lawyers and eight partners, and plans to recruit five graduates this year, if they pass the bar exam. The firm plans to develop the arbitrage, real estate and intellectual property areas this year. It also aims to set up a fiscal consultancy division, which will be headed by a partner.
IT Smart Distribution forecasts EUR 18 mln turnover in 2013 IT Smart Distribution posted a turnover in excess of EUR 8 million in 2012, of which 85 percent came from the distribution of hardware and the rest from software and licenses, the firm has reported. Between May and December 2012, the company delivered over 10,000 orders. For 2013, the company estimates a turnover of EUR 18 million. IT Smart Distribution was founded in April 2012 and is currently an authorized re-seller for APC, Epson, HP, Kyocera and Toshiba. This year, the company aims to introduce at least four new brands into its portfolio.
iQuest opens new software development center in Craiova
CONSTRUCTION Henkel puts EUR 770,000 into modernizing Pantelimon factory FMCG and construction materials manufacturer Henkel has invested RON 3.4 million (approximately EUR 770,000) in increasing energy efficiency at its factory in Pantelimon, near Bucharest. Out of this, RON 900,000 (approximately EUR 200,000) is EU money. The project, which began in March 2012 and runs until this February, involved bringing in a new sand drying technology. Following this investment, the factory’s energy consumption for the sand drying process should decrease by at least 10 percent.
ENERGY Rompetrol plans USD 200 mln of investments in retail network Oil company Rompetrol, fully owned by KazMunaiGaz, is set to invest around USD 200 million in boosting its Romanian retail network, as part of a larger effort to accommodate rising output at its Petromedia refinery, said senior vice president Azamat Zhangulov, in an interview with Bloomberg newswire. Rompetrol is planning to add 150 new stations in Romania and another 200 in Bulgaria, Georgia and Moldova. The company wants to build at least 100 stations in Ukraine and to enter the Turkish market by acquiring some units
Software services developer iQuest has announced the opening of a new center in Craiova, where it plans to hire 40 senior and entry-level people who know Java, .NET and SharePoint, web development, mobile app development, software testing, web design, database and business intelligence. The new office in Craiova is located in the center of the city in Continental Business Center. Like the company’s other centers, it will supply software services and solutions for life sciences, financial services, telecommunications, logistics and media. iQuest also has software development centers in Cluj-Napoca, Brasov and Sibiu, at which a total 450 specialists are employed.
Telecom tariffs comparison application available in H1, 2013 The Romanian telecom watchdog ANCOM has announced that the draft phase of an online application that will make it possible for users to compare tariffs for mobile telephony, fixed telephony and broadband services is finished. The online application, hardware equipment and software licenses have been delivered by the company that was appointed for the task, UTI Grup. Over the coming period, the suppliers of electronic communication services must introduce in the database all the commercial offers for mobile voice, fixed voice, and broadband internet. Representatives of the telecom authority will check the accuracy of the data uploaded in the application. The end user will be able to use the application sometime in the first half of the year.
Bulboaca & Asociatii turnover up 27 percent to over EUR 3 million on higher billing
LOGISTICS TNT Romania opens express hub in Timisoara Package delivery and logistics company TNT Romania, part of Dutch group TNT Express, last week opened a new hub close to the International Airport Traian Vuia in Timisoara in a bid to extend operations in western Romania. The new express hub is close to the bypass road, one kilometer from the airport, and has 1,200 sqm of storage space. It handles national and international deliveries, while providing logistics services. The center has 22 docking areas for vans and seven platforms for trucks. TNT says the new hub offers facilities for key clients in the area that are active in the auto industry, electronics and high-tech and in the pharma sector. The company is certified to deliver goods with a special regime such as solvents and paints.
RETAIL Profi to hire 1,000 new employees in 2013 Retailer Profi plans to increase its existing staff of over 4,000 people to beyond 5,000 by the end of the year, according to Pawel Musial, the retailer’s general manager. The announcement comes after the company said it would invest some EUR 18 million to open 45 new stores in 2013 in addition to the 150 existing ones.
10:30 The Association of Operational Leasing Companies (ASLO) organizes a press conference on the operational leasing market at the SkyKartin Kartodrom. By invitation only.
February 13 10:00 MedLife organizes a press conference to mark the launch of a healthcare insurance product at Howard Johnson Grand Plaza. Mihai Marcu, MedLife president, will attend. By invitation only. 10:00 The Balkan Fellowship for Journalistic Excellence organizes a press conference on the labor restrictions for Romanians in the EU at the Novotel Hotel. By invitation only.
March 4 ∫EVENT Business Review organizes the eighth edition of its Annual Investment Awards, which recognizes the achievements of local and international companies and entrepreneurs doing business in Romania in 2012, at Athenee Palace Hilton Hotel. By invitation only. Find out more.
March 6-8 The SME forum, which brings together public officials and company representatives, is organized at the Romexpo Exhibition Center.
March 14 ∫EVENT 16:30 Business Review hosts the first Chinese Investors Forum, an event that aims to gauge Romania’s relationship with the world’s second largest economy, at Ramada Plaza Hotel. Find out more at www.business-review.ro/br-events.
March 20 10:00 Result Development, in partnership with Mastermind Communications, organizes an event to present the results of the study, Values of Romanian Employees. The event takes place at the Howard-Johnson hotel, Platinum Hall.
March 28 ∫EVENT Business Review organizes its flagship event Tax&Law, which presents the latest fiscal and legal changes that affect the business environment. Find out more at www.business-review.ro/brevents.
www.business-review.ro Business Review | February 11 - 17, 2013
4 NEWS BANKING
3Q Jürgen Meisch CFO of Gothaer Group
Gothaer has made acquisitions in CEE in spite of the Euro zone crisis. What was your purchase strategy for Platinum Asigurari Reasigurari? We had been looking at the CEE markets for a while but we felt the prices being paid were way too high. We watched this, we had our strategy defined, and we had our target markets defined, namely Romania, Poland, Turkey, Russia and Ukraine. We’d been watching these markets and after 2008 (the Lehman Brothers moment) we knew the time would be coming. We intensified our discussion and when we entered Poland we were the only buyer. In Romania, it seems to be almost the same. When we started to really look at Romania, some companies were leaving. At the moment we see no competition. We see companies that are looking to be sold asking investors to come and help with discussions, which is a typical sign of a market that is at the bottom. Do you plan to fully acquire Platinum Asigurari Reasigurari given that you currently have a 67 percent stake? Eventually, yes. The transaction structure gives us the opportunity to buy the rest of the company down the road and it gives the other two shareholders the opportunity to sell to us. For the next five years we are going to be together. Do you think Romanian insurers are vulnerable to bankruptcy? I wouldn’t say that because they are usually owned by very rich people that have deep pockets to inject fresh capital into their businesses. I don’t think anybody is facing bankruptcy. As long as people are willing to invest and fill up the reserves that are not there today they can continue to operate but they will need to have different price models. ovidiu.posirca@business-review.ro
Central bank governor urges banks to prioritize business lending
R
omanian central bank governor, Mugur Isarescu, said last week that many banks have not changed their businesses to help companies and have continued to focus on consumer loans and mortgages, which are easier to sell, although Romanians have become more indebted. The governor reckons the Romanian debtor has matured and will think twice before taking out a loan, unlike during the lending boom in the 2007-2008 period that was built on consumer loans. “The Romanian population is quite indebted. The fact that people are not taking on even more debt and that there isn’t any demand for credit may irritate those who make a living from the consumer credit business and from the stimulation of consumption through it,” said the governor. A recovery for lending in Romania depends on credit becoming cheaper and on the existence of resources for lending, according to the governor. He said that the local subsidiaries of foreign banks – which represent over 80 percent of the banking system – have been going through a deleveraging process in the
Central Bank governor Mugur Isarescu
past two years. The loan-to-deposit ratio has fallen from 180 percent to 120 percent. The central bank decided last week to maintain the key interest rate unchanged at 5.25 percent, in a key move designed to boost lending to the private
sector, while promoting domestic savings. A survey published by the National Bank of Romania in November suggested that loan demand from companies has grown at a moderate pace in the third quarter. Fewer Romanian took out mortgages, while consumer credit demand has leveled off. Banks estimated a further toughening of mortgage lending conditions in the fourth quarter, while consumer credit loan standards would remain unchanged. “Many of the Romanian banks have remained anchored in consumer credit, which is granted more easily, and mortgages, and they haven’t developed their capacity to lend to the entrepreneurial sector,” said the governor. Isarescu added that trade finance and project finance are harder to do and banks need to carefully assess the risks and find the right experts, as “a simple vendor is not enough”. The central bank’s expectation of economic growth is in line with the IMF forecast of 1.6 percent of GDP this year. ∫ Ovidiu Posirca
EU
European Commission focuses on reform and economic growth in Romania The absorption of EU funds, which economists say is crucial to ensure growth, was another topic raised during the official meeting. “We had a good frank discussion indeed on the use of structural funds. We have talked a number of times about the need to improve the absorption capacity of these funds. I welcome the commitments of Prime Minister Ponta on this issue with particular focus needed on the preparation of the next programming period,” said Barroso. Romania’s absorption of EU funds stood at 21.8 percent at the end of 2012, according to the European Affairs Ministry. The EU and CEE averages were 45 percent and 43 percent. Prime minister Ponta met EC presiIn spite of the poor absorption, Rodent Jose Barroso mania aims to obtain higher cohesion and agricultural payments in the next uropean Commission president, EU budget that runs through to 2020. Jose Manuel Barroso, last week Negotiations on the new budget are still acknowledged Romania’s ef- underway in Brussels. “I am sure the final agreement will forts to keep the budget deficit below 3 percent last year but warned that more take into account Romania’s interest needs to be done on the independence and will respect the EU objective of of the judiciary and the appointment of more cohesion between member states key posts, during discussion with Ro- and fewer differences between older and newer member states,” said Ponta. manian PM Victor Ponta.
E
The president said the political conditions allow Romania to make a real push on the reform process. He added that politicians should “set an example by stepping aside where integrity ruling or corruption charges exist”. The Cooperation and Verification Report published by the Commission earlier this year on Romania’s reforms of the judiciary and anti-corruption practices pointed out that two ministers in the Ponta cabinet had been charged with corruption. Neither has resigned yet. Although Romania is technically ready to join the Schengen area, a final political decision is still required. PM Ponta plans to send a letter co-signed by Romania’s top officials, including the president, to all EU leaders. He will seek acceptance to Schengen, along with Bulgaria, in March. “As you know, I support, and the Commission supports, Romania's accession to Schengen,” stated the Commissioner. PM Ponta has also met with the European Council president, Herman van Rompuy and the Regional Policy Commissioner, Johannes Hahn. ∫ Ovidiu Posirca
www.business-review.ro Business Review | February 11 - 17, 2013
NEWS 5
IT
Catalyst Worldwide launches regional ‘Silicon Valley’ from Romania
Michael Koch, CEO of Catalyst, praised Romanians’ technical capabilities
C
atalyst Worldwide, a developer of digital technologies that is part of Catalyst Group, has launched officially in Romania, with plans to employ 250 people by the end of 2014. At the moment, the team in Romania numbers 33 people, but by the end of 2013, the staff is projected to reach up to 100 employees based in Bucharest. “The first 50 people you bring into the company will define your culture for a number of years,” said Michael Koch, CEO of Catalyst Group, who also specified that the corporate headquarters of the company will be based in the Romanian capital. “There is no need to go outside Bucharest,” he added.
Koch: Some global CEOs are raving about the work done in Romania Romania was chosen over a number of other countries because the local teams have certain attributes that are hard to find elsewhere, said Koch. “The attention to detail here in Romania is unrivalled globally. Here people think through things,” said Koch. “Some global CEOs are raving about the work done in Romania. The best technological development that I have seen was right here.” Catalyst Worldwide was founded in 2012 as part of the Catalyst Group. Koch said he intends to turn Romania into the most important digital development hub in Europe, with the ultimate goal an Eastern European Silicon Valley. Koch said he will stay in
Bucharest for at least two weeks every month to help make that happen. He added that Romania is on the brink of a great shift five to ten years down the road. The plan to turn Romania into an Eastern European Silicon Valley will have three elements. One aspect will be creating an international production center accompanied by a digital solutions incubator called Global Digital Think Tank. Secondly, Koch will found in Bucharest the Digital University, which will bring the most innovative IT entrepreneurs together in a digital eco-system. Third is the creation of the Digital Catalyst Fund, an investment fund to support entrepreneurial ideas from all over the world. Koch is a review board member in the Digital Catalyst Fund, with other board members including businessman Cristian Burci, former gymnast Nadia Comaneci, entrepreneur Emi Gal of Brainient, Matt Spiegel, CEO of Tap Me, Simon Bond, CMO of BBDO & Proximity Worldwide, and Lance Neuhauser, founder and CEO of The Echo System. Koch, a serial entrepreneur who has started companies that deliver tailormade solutions to global companies such as P&G, Fed Ex, Visa, Pepsi Co, Mars, Campbell’s, Nike, AT&T and Microsoft, is also founder and CEO of Provision. Between 2000 and 2012, he launched and sold three privately held digital production companies, most notably Kinergy Worldwide. ∫ Otilia Haraga
BR’s Weekly Infographic
www.business-review.ro Business Review | February 11 - 17, 2013
6 INTERVIEW
Gefco: local exporters must look east for growth CV Christophe De Korver 2010-present – managing director at Gefco Romania 2007-2010 – business unit manager for all spare parts, logistics and transport activities worldwide at the Gefco headquarters in France 2002-2007 – general manager of Gefco Czech Republic Another alternative is the Middle East market and South Africa.
Courtesy of Gefco
The economic slowdown in Western Europe has taken its toll on foreign companies’ production in Romania as well as on local exporters and implicitly on transport and logistics firms. The trend could well continue into 2013 should alternative export markets not be tapped into, Christophe De Korver, managing director at Gefco Romania, tells BR. ∫ SIMONA BAZAVAN Do you have an estimation for the value of the Romanian transport and logistics market? In 2011 the Romanian transport market – direct and indirect transport coming from forwarding companies – stood at EUR 780 million. We don't yet have the figures for 2012 but I estimate that the volume did not really increase that much. There has been major impact owing to the disappearance of the number one transporter (e.n. Edy Spedition). So I estimate in 2012 it was around EUR 800 million. We should be able to reach EUR 1 billion, but it is hard to say when exactly the market will grow to this level. It is achievable also because Romania should remain a strong transit country and even if local consumption does not increase that much. Where do you see growth coming from for the market and for Gefco in particular this year? I will start by speaking about what hap-
pened in 2012 because it is related. In the second half of last year Gefco faced a worrying evolution – a lot of our main customers dropped volumes, especially because of the effect of the economic situation in Western Europe. What we can say is that Gefco’s local business in Romania has been pretty ok but all the business related to other subsidiaries, which buy from us, for example, has dropped dramatically. This is why we are worried about 2013 because we don't know how this trend will continue. This is why I think we have to focus on new export destinations because we’re really seeing the demand we have for this kind of business in Western Europe dropping and dropping, and by the end of the year it has reached a very, very low level. The alternatives are the east – Russia and the Middle East. Now that our main shareholder is Russian (e.n. Russian Railways, RZD, bought 75 percent of Gefco from PSA Peugeot Citroen at the end of last year) we have the perfect opportunity to transport products to Russia, Ukraine, Kazakhstan and Belarus.
But are Romanian companies looking to do business on these markets? We are analyzing this but when there is a country like Iraq which is undergoing reconstruction there should be demand. And people often say to me that if one has a good product at the right price why go to Germany to buy it if it is available in Romania? There is also the political aspect but, nevertheless, demand will follow. We have also just opened a subsidiary in South Africa and we are able to manage shipment there very well. We’re focusing on these alternatives because we believe this is the future. I don't think Western Europe should be a trade target for Romania today. We have the advantage of having strong support from Russia but we are also looking at the Middle East and South Africa because we think this is where growth will be coming from. There is also the advantage of access to Constanta. The port has the right infrastructure in place and normally there is no reason for a Romanian exporting company to say it cannot transport and deliver from there. Constanta can only grow through local business and I suppose Romania simply does not export enough. What do you think will be the greatest challenges for the industry and Gefco in particular this year? The economic situation in Western Europe will continue to be a challenge. Another challenge, of course, is what the new government is going to do about the infrastructure. Given the recent elections I hope that there will be more stability and more investments, durable investments. In the case of motorways I hope they will really focus on projects that have already begun. The same applies for railways.
To give an example, if we have a truck unloading in Craiova and than we want to reload it in Bucharest the distance can be covered in six, seven hours which is close to a whole working day for the driver. He can only drive for ten hours. We would make enormous savings with a motorway between Craiova and Bucharest, for example, and this would also mean lower prices for our clients. It would be a win-win situation. Romania also needs to consider that there is going to be another big competitor in the region coming from Croatia. The country has a great port in Rijeka with a great inland railway connection. A company located in Timisoara will prefer Rijeka to Constanta if their containers are delivered faster and makes more business sense. This is why the infrastructure is so critical. Who are your biggest Romanian clients? Our most important clients are in the automotive industry but also car parts manufacturers. This generates about 65 percent of our business. We also work intensively with white good manufacturers – Artic, Electrolux and others. We are very dependent on our main clients. Some 80 percent of our business is generated by our biggest 25 clients. We also have some smaller clients. In 2012 we gained Peak Toys and Nefab. In the industry we continue to work with Alro-Vimetco Slatina and Timken. However, all our clients are telling us that at the moment they are struggling. I don't need to give particular names. Over the past six months, although we haven’t lost any of our clients, all of them are downsizing their business. Not only in relation to Western Europe but also the USA. What were Gefco’s financial results in 2012? What about the local subsidiary’s contribution to the group? Our turnover reached EUR 43 million in 2011. The figures for last year are not yet out. We had a slight increase coming from our local clients but a big drop from our internal customers, meaning the Gefco and Peugeot Citroen business. We generate about 10 percent of the revenues in the region, meaning Central and Eastern Europe and including Turkey. Romanian operations are in sixth position, behind Russia, Poland, the Czech Republic, Slovakia and Turkey and ahead of Hungary, Austria, Ukraine and the Baltic countries. Read the longer version of this interview at www.business-review.ro. simona.bazavan@business-review.ro
www.business-review.ro Business Review | February 11 - 17, 2013
OPINION 7
OPINION Debbie Stowe
Romanian emigrants deserve better than this spat
Unless you’ve been on a desert island for the past couple of weeks – or perhaps out of it on Romania’s famously cheap beer – you cannot have missed the latest exchange of salvos over the hot topic of Romanian immigration westwards. Rumors emerged two weeks ago that the British government was planning to respond to the imminent lifting of employment restrictions on EU-2 nationals by, among other measures, an “information” campaign to “correct the impression that the streets here are paved with gold”, according to an “unnamed minister”. Romanians and Bulgarians reacted indignantly to this ludicrous and offensive suggestion. Ripostes ran from drollery – digs at Britain’s Victorian-era separate hot and cold taps that foreigners (rightly) find so perverse – to trollery – malicious attacks on everything from Britons’ “arrogance” to footballer Wayne Rooney’s wife. In the Romanian media the charge was led by newspaper Gandul, which took a sideswipe at the rumors with its own poster campaign presenting the attractions of Romania for Britons. Both “campaigns” (if the suggestion of the UK government spending taxpayers’ money on posters saying how rubbish Britain is can even be given credence) were fatuous. Britons have valid concerns about immigration that are nothing to do with Romania. In 2004, the UK government predicted that the EU-10 accession would lead to annual inflows of up to 13,000 people. The actual figure peaked at over 250,000. One in four babies in the UK is now born to a foreign mother. There is pressure on housing, schools and low-end wages. None of this is the fault of Ro-
manian or Bulgarian would-be immigrants. It is not easy to leave your home country and move to an alien culture. I know many Romanians who’ve done so and always been impressed by their drive. The suggestion that they are unwelcome or not entitled to the same treatment as anyone else is insulting. Secondly, for the UK the mass immigration horse bolted in 2004. The lifting of restrictions later this year will affect only Romanians who want to work legally – surely the most welcome group. The rights granted in 2004 applied to 75 million people, most of whom had had no opportunity to move west before, and with restrictions still in place in other obvious EU destination countries (Germany and Austria). The lapsing of controls this year affects 29 million people who will already have had emigration options for six years and who, in Romania’s case, have far greater cultural and linguistic affinities with Latin countries. So a “don’t come” campaign is both needless and offensive. Unfortunately, the response did not raise the level of debate. Though the tongue-in-cheek campaign played well with the masses – attracting widespread international coverage and no doubt boosting Gandul’s rate card – the boasts it put forward were largely poorcountry clichés. Cheap beer? Yep, Romania is a low-income country (in EU terms) with low salaries so most things are cheap: that’s why people want to emigrate in the first place. “Our” women? Not a commodity to be trotted out to boost tourism. As one local blogger complained, this creates the exact image of the “Romanian peasant the English shun: sexist, retrograde, patriarchal and, if necessary, pimp.” Other responses were less intelligent and considered. “If it’s so great,” raged British boneheads on social networks, “stay there then.” Sigh. Immigration is a hugely complex issue in the UK, one that could decide the next election. Attitudes to it will certainly color the lives of the many thousands of people who enter Britain wanting nothing more than to work hard and live a better life. They deserve a more adult approach than this unedifying back and forth. debbie.stowe@business-review.ro
www.business-review.ro Business Review | February 11 - 17, 2013
8 FOCUS
Pharma secto weak growth While the pharmaceutical sector expanded by 5 percent to EUR 2.7 billion in 2012, industry players are warning that this year’s growth will be hindered by Romanians’ impeded access to healthcare services, combined with delayed payment terms and a controversial claw-back tax.
The claw-back tax remains the main challenge for the pharmaceuticals industry
∫ OVIDIU POSIRCA The amount of medicines granted to patients in the retail segment increased by 2.6 percent to EUR 2.3 billion last year, according to the Pharma & Hospital Report by Cegedim Romania, a data provider for the pharmaceuticals industry. Meanwhile, the hospital segment gained 6.4 percent to EUR 356 million. Prescription-based medicines (Rx) grew by 1.8 percent last year to around EUR 1.9 billion, while overthe-counter (OTC) drugs rose by 6.6 percent to EUR 375 million. Petru Craciun, general director of Cegedim Romania, who reckons that market difficulties have started to impact even the strongest companies, predicts the market will increase by 1.4 percent this year in the local currency, falling when expressed in foreign currencies. “The most important issue is not necessarily found at company level, although their problems have multiplied, but in the quality and availability of the medicines for patients, and of healthcare services in general,” stated Craciun. Diana Ionescu, senior consultant, advisory services, at the professional services firm PwC Romania, says the industry has a poor outlook with mar-
ginal growth that will make it vulnerable to any legislative changes.
Romania faces conundrum
generics
In an industry dominated by innovative medicines, the generics are trying to gain ground on the backdrop of a hostile legal environment. The innovative sector represented 75 percent of the market and around 25 percent of the volume in 2012, Dan Zaharescu, executive director of the Association of International Pharmaceuticals’ Producers (ARPIM), told BR. The rest belonged to generics, which are medicines whose patents have expired, allowing other firms to make and market their own versions. Although they dominate the market, producers of originals argue they can’t introduce new products to the market and have to wait 300 days to receive payments from the National Insurance Body (CNAS). In addition to long payment terms, producers are owed RON 6.3 million (EUR 1.4 billion), debt that has built up since 2010. “It is more than six years since the list of subsidized medicines has been updated, and Romanian patients are still waiting for innovative medicines that have been available in Europe for many years,” said Zaharescu. He suggested that raising healthcare financ-
www.business-review.ro Business Review | February 11 - 17, 2013
FOCUS 9
tor faces h prospects ing could solve this issue. Cegedim estimates this would cost RON 94.3 million (over EUR 21 million), adding 1.5 percent in fresh expenditure to the budget. Dragos Damian, president of the Romanian Association of Generic Pharmaceuticals Producers (APMGR), fears the update would impose an unfair burden on the industry if the government doesn’t introduce both innovative molecules and those that already have a generic or biosimilar equivalent. In spite of the tough market, the innovative industry has invested heavily in clinical testing. ARPIM estimates that companies have invested between EUR 100 and 200 million locally in 2012. Romania has some of the lowest regulated medicine prices in the EU, in an effort to give more Romanians access to treatment. This has led to constant growth in the parallel trade of pharmaceuticals. “Parallel exports have become a profitable phenomenon which is becoming more prevalent,” said Zaharescu. He added that these exports soared by 40 percent to EUR 700 million in 2012. Ionescu of PwC stated that generic pharmaceuticals penetration is an increasing trend in most countries in both Eastern and Western Europe. She says Romania is characterized by a low consumption of OTC and generic pharmaceuticals. “The evolution of generics as a percentage of total prescription drugs consumed has oscillated in the past, but the long-term trend supported by changes in regulation is for the weight of generics to increase. However, it will still take time for Romania to reach the average of the other CEE countries,” Ionescu told BR.
Tax prescriptions Since its enactment in 2009, the clawback tax has been the subject of heated debate in the pharmaceuticals industry. Executives said the tax was necessary but its mechanism was flawed. The claw-back has reached its fourth version and was declared partially unconstitutional last week because it included VAT in the calculation mechanism. “The many disputed aspects of the claw-back tax and the recent ruling regarding partial lack of constitutionality make it more likely that the tax will be modified in the future,” said Ionescu. She added that the claw-
back was a burden for producers who are already in a cash-restrained industry and have had to curtail investments and even the production of medicines in some cases. “Overall, the negative effect of the claw-back tax and of cash insufficiency on the market was visible in 2012 in lower growth rates than previous periods,” said Ionescu. Zaharescu explained the Romanian version of the claw-back is unique in Europe as it obliges producers to cover the pharmaceuticals deficit, which is established arbitrarily and doesn’t taken into account the real consumption needs. Efthymios (Makis) Papataxiarchis, ARPIM president, recently told BR in an interview the industry had paid around EUR 1.1-1.2 billion, according to some calculations. APMGR members paid around RON 75 million (EUR 17 million) under the claw-back over 2009-2011 and around RON 250 million (RON 56 million) in 2012. Out of these sums, approximately RON 50 million (EUR 11 million) represented payments for VAT and the mark-up of distributors and pharmacists. The current fiscal environment has forced some generics producers to put investments on hold, at a time when job creation is critical for Romania’s economic recovery. “Due to the current unfavorable fiscal framework, several generic companies have delayed investments worth EUR 25 million, initially planned to start in 2012, and most companies have re-evaluated their local production, including by limiting their activities in Romania,” said Damian. APMGR is lobbying for a claw-back that exempts medicines with a production price below RON 30 (EUR 6), to ease pressure on producers that continue to provide basic pharmaceuticals. “To reach a tax formula accepted by producers, it is important for the claw-back calculation mechanism to take into account the real consumption of medicines in the previous year and the production price, not the shelf price,” said Zaharescu. Zaharescu adds a new EU directive will be enforced next month, reducing payment terms to 60 days. He said the sector should benefit from the government’s decision to allot a sum in this year’s budget to the payment of arrears. ovidiu.posirca@business-review.ro
www.business-review.ro Business Review | February 11 - 17, 2013
10 FOCUS
Romania plays catch-up on freelance scene Local companies still turn up their noses at employing freelancers for reasons related to traditionalism, lack of trust and lagging mentalities. Romania holds one of the top positions in Europe in terms of earnings from freelancing activities, but projects come mainly from abroad. Freelancers, bloggers, HR and taxation experts shared their experiences and views on the matter with BR.
Freelancing upside: being your own boss, earning top dollar, time-space flexibility. Downside: lack of predictability and stability
∫ OTILIA HARAGA A personal journey “It all started in 2007 when an internal ‘revolution’ happened. My parents offered me the opportunity to visit the great European cities for a few weeks. I was 18 at the time, and I noticed that people there had a different ‘work culture’: they were relaxed, calm and well organized and their satisfaction level was considerably higher than in Romania. I thought I should try it as well,” Roxana Nasoi, freelancer and Elance Romania consul, tells BR. She started with small steps in 2008 while still a student, looking up information about freelancing on the internet. “I chose freelancing because I could not have managed to attend a state faculty and work at the same time. (…) Freelancing offered me the chance to study for five years, follow a state curriculum and earn money, even though at first I did not earn very much,” Nasoi says.
Among the benefits of freelancing, paramount is the cultural diversity, working with people from various cultures, she found. Secondly, “the client is not your boss” but an equal partner who shares his or her business vision. “There are cases where clients don’t know what they want, and you become, above everything, a consultant in their business, guiding them on the path to success. The freelancer in a business is like the first brick in a construction: the stepping stone to a unitary successful whole,” says Nasoi. Thirdly, freelancing offers the freedom to organize one’s space and time as one sees fit and choose one’s clients. Fourthly, it allows time-space flexibility. “You can work wherever you want if you have a laptop/tablet/smartphone and a good internet connection. You can work from the seaside, from a café, from a friend’s house, from the bedroom or living room. You can work during the holiday for two-three hours a day. You are not dependent on a work
space, an hour or a time zone,” she points out. Last but not least, the financial gain can be an incentive. “You earn well – very well. At the start you earn less while you build up a portfolio of clients and gain experience, but once these are in place, things are different. Clients come to you, you select them, you set the price. You can make your own team and a virtual company and generate 10 times more profit,” Nasoi says. However, a word of advice: freelancing is not for the faint hearted. It can take from months to several years until one can make a living out of freelancing alone. Furthermore, it does not provide a regular income. “Some months, you might have 10 projects and others you can have none. You must make sure you either have clients all the time (and here there is no recipe for success) or manage your money so that if one particular month you make no revenues, you are still covered,” says Nasoi. Fees can be negotiated on a per proj-
ect or hourly basis “Some clients pay a fixed sum per project, no matter how long it takes to make it happen. For instance, I can complete a USD 1,800 project in a month or even two-three months,” says Nasoi. Other clients pay by the hour. “This usually happens on the websites I use, which are Elance and ODesk,” says Nasoi. She charges a minimum of USD 2024 per hour. “I cannot do more than 1015 hours per project per week. Everything is very well calculated so that I do not end up working more than seven hours a day. Out of this sum, after I pay taxes I am left with USD 16-20 per hour. This involves the commission taken by the platform as well as banking fees, withdrawals etc, says Nasoi. The freelancer must be up-to-date with the latest info in their domain, whether it is web design, mobile apps, SEO, copywriting, social media, data entry or similar. “You have to be a Jack of all trades. You are not an employee, but in practice a firm that offers a certain service. This means you must lead the sales, negotiation, business plan, do the work per se, send reports, check, be a manager, coordinate. For all these, you must work with yourself. This involves self-motivation, self-coordination, time management, the management of resources, negotiations, generating results, financial calculations and profit – for every client. When you create a team around you, more tasks pile up on the management side,” says Nasoi.
Local IT freelancers stand out in the crowd Online freelancing platform Elance ranked Romanians in third place in Europe, after Ukraine and the UK, in terms of earnings between 2007 and 2012, when Romanian freelancers earned USD 16.4 million. In 2012, they cashed in USD 5 million. Worldwide, Romania was ranked seventh in terms of revenues. Companies from the United States, Australia, the United Kingdom, Canada and the United Arab Emirates hire the most Romanians. Local freelancers are active mainly
www.business-review.ro Business Review | February 11 - 17, 2013
in domains such as IT & programming, that there is only one person actually where they earned USD 12.6 million, doing all the work,” she says. Still, there are still very few compaand graphic design & multimedia, where they gained USD 2.8 million, be- nies in Romania that hire freelancers, tween 2007 and 2012, according to compared to what happens abroad. “In statistical terms, let us say that every 10 Elance. “IT freelancers are well prepared, minutes the number of freelancing speak foreign languages and are a rela- projects from international companies tively cheap workforce compared to is updated. While on the Romanian Western European countries. From the market, the number of projects from trainers’ viewpoint, freelancing is not local companies is updated once a very attractive,” Leonard Rizoiu, busi- month. Interesting, right?” says Nasoi. The mentalities that are still lagging ness unit manager in the Barnett McCall division, recruitment and selection, behind in Romania are one obstacle. “There is still a general feeling that if you Gi Group Romania, tells BR. “A Romanian IT freelancer could earn are a freelancer, it means you are unanything between EUR 3,500 and EUR employed and people are not familiar 9,000 per month. A trainer freelancer with this concept,” Irina Scarlat, freecould make between EUR 1,000 and lancer and managing partner at EUR 1,300 per month while a freelancer ProvePR, tells BR. “There is a preference for contracts in recruitment earns between EUR 1,300 and EUR 1,500 per month,” says for a limited period (six months to one year) to oblige the freelancer to acquire Rizoiu. “Programmers take the icing on the the status of employee and come to freelance cake in Romania, as is to be work for eight hours a day,” says Scarlat. expected. Then there are freelancers in fields related to the web, IT and design. Legal and tax considerations Niches such as translations are coming A freelancer must consider issues such strongly from behind,” says Cristian as paperwork and legalities. “Banks do China Birta, blogger at Chinezu.eu. not consider freelancing a source of sta“Statistics we have so far – not very ble revenue and do not grant loans. detailed, it is true – place the average in- However, a freelancer does not resort to come of a Romanian freelancer at USD bank loans too often anyway,” says 20/hour. This, in relation to Romanians’ Nasoi. average revenues, is really okay,” says The freelancer’s legal status is yet China. another issue. Oana Manuceanu, senior Other fields where freelancers have manager, tax consulting, PwC Romania, made an impression include design, explains that there are two main catejournalism, photography, social media, gories of freelancers: those who get aubusiness, translation, education, art, thorization from the Registry of communication, consultancy and even Commerce (sole traders) and those who health. can provide services only based on speRomanian freelancers make more cial authorization issued by profesthan 90 percent of their revenues from sional bodies (members of the so called contracts with foreign clients. However, liberal professions regulated by special in the past year there have been signs laws). of defrosting on our market as well. (… For the liberal professions, rules to ) We will know in about two years if get a qualification are stricter, explains there will really be a market for this or Manuceanu. “They must obtain a pronot,” says China Birta. fessional license/authorization that is Large companies generally have an usually issued after passing an exam in-house employee but they may turn (auditors, accountants, architects). As to a freelancer in some cases. “If members of professional bodies, they they have an emergency and need to have to pay an annual fee and get proresolve it quickly, freelancers are avail- fessional insurance,” she says. able. Maybe they are stuck and need a In terms of fiscal obligations, both new idea. The employee may have a sole traders and liberal professionals blockage – a long time working in the have the same liabilities, with a few exsame style can do that – and it takes a ceptions. fresh point of view. Or maybe they need Fiscal costs for freelancers are lower a specialist for a particular type of prob- than overall costs for employment. On lem,” Oana Olaru Zainescu, design the other hand, freelancers must meet blogger at Zaineasca.ro, tells BR. their payment obligations and organize SMEs employ freelancers for spe- single-entry bookkeeping. cific projects, but often are satisfied and “This entails the additional costs of continue the collaboration. “While in a professional accountant and more large companies freelancers bring time spent in the event of tax freshness, to SMEs long-term relation- audits/follow-ups with the authorities ships must provide continuity in their for payment allocation/tax decision isstyle. It is often very difficult for a free- suance,” says Manuceanu. lancer to mould to the original style, so A simplified taxation regime based companies are starting to prefer work- on a fixed income quota is available for ing with the same freelancer,” Zainescu certain activities strictly listed by the adds. law, such as photography, taxi driving, The other side of the coin is when crafts and agriculture,” she adds. companies prefer to hire an agency with 20 employees, a business plan and otilia.haraga@business-review.ro a coordinator. “Often, they are unaware
FOCUS 11
www.business-review.ro Business Review | February 11 - 17, 2013
12 CITY / HOUSES WITH A HISTORY
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The four building and architectural booms of Bucharest
All photos: Valentin Mandache
‘Little Paris’ style, late 1880s, first building boom period, now left derelict, George Georgescu St
VALENTIN MANDACHE I am regularly asked by expatriates living in Bucharest for advice in relation to acquiring, restoring or renovating period properties in the city. As a common denominator, all of these people love the charm and personality of old architecture, its symbols and the sense of identity that it conveys, but often do not have a clear idea of the local architectural styles, how they came into being, their role in the evolution and development of Romania’s capital, and how those factors condition the price of a house, its state of repair and even location. In order to better decide how to efficiently spend money in such an enterprise, a basic grounding in the history of Bucharest’s built landscape can, in my opinion, help one understand the market for period properties and ultimately avoid its often deceiving traps. Bucharest encompasses within a relatively small territory the history of Romania’s real estate and its architectural heritage. Until the onset of the current crisis, the city had been going through a significant building boom, with property investment becoming one of the main drivers of the economy. For the stock of period property that situation had many negative aspects, and historic
Modernist style building, from mid1930s, second building boom period, Cotroceni quarter
Art Deco style house from early 1930s, displaying the ocean liner theme, Kiseleff area
‘Little Paris’ style house from 1900s with neoclassical entrance renovated professionally, La Belle Epoque period, Calea Mosilor
edifices got demolished or aggressively and unprofessionally renovated. Added to that is the attitude of many of Bucharest’s citizens toward their architectural patrimony, at best characterized as indifferent, and the lack of knowledge in the field of heritage preservation among the local decision makers, on a background of still deficient legislation. However, those phenomena of destruction and creation peculiar to times of change are nothing new in the city’s modern history. Bucharest has been through four major building booms in the last century and a half, including the one highlighted above. The first unfurled in various intensities in the last two decades of the 19th century until the Great War, when the city acquired the character of the “Little Paris of the Balkans”. An iconic building of that period is the Romanian Athenaeum, now universally considered the symbol of Bucharest, a concert hall in the style of Paris’ Opera Garnier. The boom was fuelled by the efficient organization of the country on Western lines by King Carol I and the revenues generated by extensive grain exports. The numerous residential buildings erected in that period are now architectural gems, some of the best such acquisitions which can be made in Bucharest.
The second boom unfolded in the times of economic wellbeing in the 1920s and the 1930s, characterized initially by edifices in the Neo-Romanian design, the country’s national style, and, once modern building technologies became available and affordable in the late 1920s, in Art Deco and Modernist styles. One of the most prominent constructions of that era is the Telephone Exchange Palace, a rendering of a reduced-to-scale American skyscraper of the roaring ‘20s in these parts of the Balkans. The finances that made this boom possible came, in great measure, from major oil exports, Romania being one of the world’s top producers at the time. The third boom occurred in the communist period, especially in the decades of thaw and détente between the East and West in the 1970s and 1980s. It was characterized by huge housing projects, ugly and of low quality, formed of highrise blocks of flats that will blight the skyline of the city for many decades to come. The communist regime financed the construction programme from the country’s own resources, mainly exports to the Soviet Union and its satellites, and by subjecting the population to near-slavery. Some architecturally high quality buildings, such as the conference hall adjacent to the former
Royal Palace, were also constructed. Standing out is, however, the brobdingnagian-dimension and less than mediocre architectural design structure called the House of the People, reputed to be the second largest building in the world, now the seat of Parliament. Its construction bankrupted the country, causing huge misery that hastened the fall of the communist regime. The fourth boom is the contemporary one mentioned in the introduction. It had a timid start after the long recession caused by Romania’s painfully slow transition from a command to a free-market economy, and was fuelled by a massive influx of foreign direct investments, mainly western real estate funds, a situation never previously experienced by the country in its entire modern history. Mapping out the history and evolution of Bucharest’s real estate, pointed out by boom and lean periods, is in my opinion a useful exercise that helps make order of the chaos that apparently defines the Romanian capital’s built landscape, helping to clear the fog for expatriate potential buyers in their quest to acquire a heritage house. Valentin Mandache is an expert in Romania’s historic houses. More at www.historo.wordpress.com
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CITY 13
In the mood for love Whether you celebrate on February 14 or 24, on Saint Valentine’s Day or its Romanian equivalent Dragobete, this month of love sees the focus switch from business to romance, at least for one day. For both those in love and those looking for it, here are some of our suggestions for the most romantic time of the year. are on the house: enjoy a complimentary bottle of champagne and live entertainment, for RON 325/person. The hotel also recommends the special Valentine’s Room Package, including one night’s accommodation in a double Hilton Guestroom with breakfast in bed, for RON 390; 1-3 Episcopiei Street; Reservations: 021 303 3777.
∫ OANA VASILIU Where to go Concert: Paula Seling & Big Band Radio Accompanied by Big Band Radio and the Chamber Radio Orchestra, Paula Seling will stage a truly romantic show, featuring her most famous songs, jazz arrangements and tributes to Frank Sinatra, Whitney Houston and The Jackson 5. February 14, 19.00, Radio Hall (Sala Radio). Tickets cost RON 3, 12, 20, 25, 30. Getting married: Shakespeare’s Bar If you want to impress your significant other with the perfect Valentine's Day present, a wedding certificate for just one day could be the answer. February 14, 22.00, 8 Blanari Street, Old Town. Reservations: 0721 860 747. Valentine’s Day for Singles: Let’s Meet Singletons seeking Mr/Ms Right are being catered for at two parties organized by the offline social network for singles, Let’s Meet. Some 150 single people aged between 25 and 40 are invited to celebrate Valentine’s Day on February 16. The other party is on February 24 to mark the traditional Romanian celebration of love, Dragobete. Let’s Meet is Romania’s largest offline social network for singles with six communities all around the country. Reservations and more details: 0748 140 781.
What to buy Sweets Candy shops are always popular on this particular day if the object of your affection has a sweet tooth. If you have not had the chance to taste the sublime flavor of the authentic Italian chocolate Venchi, visit Caramel Lounge at 214 Calea Victoriei. On the same street, Chocolat, at 12A Calea Victoriei (entrance via Stavropoleos), has a large variety of fine cakes decorated with fresh fruit, not to mention the famous Belgian chocolate. With packaging specially designed for Valentine’s Day, Leonidas, the sweet shop on 27 Strada Doamnei, has a special assortment of famous Belgian pralines in the shape of a pink heart and a big candy box full of chocolates. Flowers Bouquets of red roses are the quintessential Valentine’s Day gift but florists are ready with any kind of flower
arrangements. For a personalized bouquet visit the traditional open flower market Piata Cosbuc. If you prefer to order from your desk, online flower shops such as www.floria.ro and www.123flori.ro offer a convenient way to find bouquets at special prices. Until late into the night, small flower stalls on street corners are there for last-minute acquisitions as you make your way home to your mate or out to meet your date. Fairs A one-stop-shop to get prepared for the present exchange is the Valentine’s Day Fair at Sala Dalles. Handmade jewelry and aromatic candles, decorations made using the Tiffany method, Venetian masks and exotic creations from India, Peru or Great Britain could impress your loved one. February 8-14, Sala Dalles.
Where to dine Kunnai Restaurant This hidden piece of modern Thailand offers Thai Kiss – a platter of traditional snacks – accompanied by a glass of sparkling wine, Thai Passion – a trio of spicy dishes to share – with a glass of red or white wine, and Thai Pleasure – enhance your sweet evening with desserts – washed down with a glass of dessert wine. You can also try the Special Couple Set Menu: RON 380 without wines or RON 550 with wines (prices per couple). The St. Valentine Week promotion at Kunnai runs from February 11-17; Address: 6-12 Copilului St; Reservations: 0722 687 343. Roberto’s Restaurant Athenee Palace Hilton Bucharest hotel Love will be in the air during a romantic candlelit dinner with your sweetheart at Roberto’s. This year, the extra sparkles
Bistro Epoque The Epoque Hotel The romantic dinner comes in two styles, for him and for her. The Amuse Bouche and First Course are prepared with both your tastes in mind, which are finally reunited in the ‘Heart of love macaroon’ and a glass of Prosecco (EUR 110). For longer magic moments, choose the Romantic Retreat (EUR 470) with three nights’ accommodation, breakfast in bed and a romantic dinner for two included. 17C Intrarea Aurora Reservations: 021 312 3232.
Haters’ corner If you are a bitter singleton, are nursing a broken heart or just want to get away from the commercialism of the 14th, come and celebrate the anti-Valentine's Day and Singles Awareness Day (both also celebrated on February 14). In Bucharest, two parties are being held under these banners: Club A - A traditional event now on its 11th run, with music by the band Tapinarii, who are launching their ninth album. February 14, from 21.00, 14 Blanari Street, tickets available at RON 10. Club Fabrica – ZOB and Niste Baieti are celebrating the anti-romance day of the year in their inimitable way. February 15, from 21.00, 50 11 June Street, tickets available at RON 20. oana.vasiliu@business-review.ro
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14 CITY
WHO’S NEWS
CULTURAL EVENTS CALENDAR
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
Cristina Popescu is the new corporate communication director for Danone Romania, Bulgaria and Greece. She joins the company from Romtelecom where she coordinated external and internal communication and CSR projects. Popescu had been at the telco since 2005, prior to which she worked for the Ministry of Communications and Technology and the Romanian Press Club. She graduated from the International Economic Relations Faculty at the Academy of Economic Studies in Bucharest and has a certificate in management change from Henley Business School.
Simona Simion-Popescu has been promoted to director of Coca-Cola Hellenic Business Services Organization Bulgaria as of March 1. She is currently working as country HR manager for Romania and Moldova. Popescu joined Coca-Cola Hellenic in 2010 in the same position. Before that she worked for Xerox, holding management positions both locally and internationally. Popescu has an MBA from the Central European University.
Mamta Murthi has been appointed director for Central Europe and the Baltic Countries by the World Bank. She will coordinate the bank’s activities in Bulgaria, Croatia, Poland, Romania, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, the Slovak Republic and Slovenia. She joined the institution in 1995 through the Young Professionals Program, and has since worked in many different capacities. An In-
dian national, Murthi holds a D.Phil. in Economics from Balliol College, Oxford, and a bachelor’s in Economics from St. Stephen’s College, Delhi.
KIDS SHOW
Tango Emotion Bucharest National Opera February 13, 19.30
Magical Disney Live! Mickey’s Magic Show Sala Palatului February 13-17 The world’s most famous cartoon character Mickey Mouse and illusionist Michael Barron come to Bucharest for the first time, to give a glimpse into the beauty of the magical Disney Live world. The local hosts during the eight performances of the show will be young actresses Alina Teianu and Nouria Nouri.
Hans Dewaele has been appointed vice-president and general director of Procter & Gamble (P&G) in Romania. He will also coordinate P&G’s activity in the Balkans region. Prior to this appointment, Dewaele served as vice-president for the Caucasus and Central Asia Republics. He has worked in Romania before, having served as marketing director between 1994 and 1998. Dewaele started his career with the global FMCG manufacturer in 1988 in Jeddah, Saudi Arabia. Since 2001 he has held various management positions in Algeria, Pakistan and Central Asia.
Marius Melesteu general manager of Strauss Balkans, has been promoted to general manager of the company’s operations in Central and Southern Europe. With over 15 years of professional experience in the FMCG industry, Melesteu has been leading the local subsidiary of the Strauss group since 2010. He began his career in 1994 at Stimorol in Romania where he held various positions up to country manager for Serbia and Montenegro. In 2004 he became marketing director at Telemobil (Zapp) and later returned to the FMCG industry, first working at Heineken Romania and later at Strauss Balkans as general director. He graduated from the Polytechnic University in Bucharest and holds a marketing license from the South Africa Marketing and Management Institute. FOUNDING EDITOR Bill Avery PUBLISHER Anca Ionita EDITOR-IN-CHIEF Simona Fodor JOURNALISTS Otilia Haraga - senior journalist, Simona Bazavan, Ovidiu Posirca, Oana Vasiliu COPY EDITOR Debbie Stowe PHOTO EDITOR: Mihai Constantineanu
ISSN No. 1453 - 729X
PERFORMANCE
LAYOUT Beatrice Gheorghiu ART DIRECTOR Alexandru Oriean
FILM
The Ludovic Spiess Opera and the Ballet Experimental Studio at the Bucharest National Opera present an exciting journey into the world of music and dance. Mezzo-soprano Oana Andra, baritone Andras Chiriliuc and pianist Alexandru Petrovici invite the audience to this love story. Winter Journey Bucharest National Opera February 14, 19.30 Tenor Lucian Corchis and pianist Livia Teodorescu Ciocanea perform Franz Schubert’s work, which features the lyrics of poet Wilhelm Müller set to music. From Classical to Modern Bucharest National Opera February 15, 19.30 Compositions by Franz Schubert, Ludwig van Beethoven and Bela Bartok will be performed by violinist Emilian Piedicuta and pianist Clementina Ciucu in a show that veers from classicism to romanticism.
EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi SALES & EVENTS Sales managers: Ana-Maria Nedelcu, Oana Albu, Raluca Comanescu, Sales executives: Bogdan Spirea, Mihai Ungureanu MARKETING Ana-Maria Stanca, Catalina Costiuc, Andreea Rusu PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat
Premiers A Good Day to Die Hard Opens February 15 The fifth installment of the Die Hard film series sees Bruce Willis reprise his most famous role. John McClane travels to Russia to help his rebellious son, Jack (Jai Courtney) get out of prison, but is soon caught in the crossfire of a terrorist plot. Director: John Moore Starring: Sigourney Bruce Willis, Jai Courtney, Sebastian Koch On at: Movieplex Cinema Plaza, The Light Cinema, Samsung IMAX, Cinema City Cotroceni, Hollywood Multiplex. Beautiful Creatures Opens February 15 Based on the first novel in the bestselling series by Kami Garcia and Margaret Stohl, this is the supernatural love story between Ethan Wate (Alden Ehrenreich) and a mysterious young girl who is waiting for him on a Civil War battlefield. Director: Richard LaGravenese Starring: Alice Englert, Jeremy Irons, Viola Davis On at: Movieplex Cinema Plaza, The Light Cinema, Cinema City Cotroceni, Hollywood Multiplex.
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