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BUSINESS JOURNAL BUDAPEST

VOL. 26. NUMBER 3

FEBRUARY 9 – FEBRUARY 22, 2018

SPECIAL REPORT

Office Equipment SPECIAL REPORT

Market consolidation Brings Focus on Service Provision

Rivals seem phlegmatic about the HP-Samsung deal in the printing segment, with little market turbulence expected. Most players say they will focus on R&D and boosting their own service portfolio to keep ahead of competition.  15

SPECIAL REPORT

Making Offices Better, Healthier, More Productive Take a look around your office. Is it simply where you have to work or is it a space you actually enjoy being in?  18

SOCIALITE

Fate, Passion and Hard Work = ExperiDance

Producer and co-founder Tibor Vona talks about the “miracle” of the many connections that had to come together for the birth of one of Hungary’s leading dance companies in 2000.  23

Quality is the new Quantity NEWS

Investor Sentiment Improving

Investor sentiment towards Hungary is continuing to improve as investment volumes in 2017 reached around EUR 1.8 billion.  4

BUSINESS

N ES BUSI

Róbert Ésik reflects on another recordbreaking year for HIPA: how much FDI was attracted in 2017, where did it come from, where was it spent, and in which sectors? 8

Wizz Air 1st ‘Wooden Bench’ airline at Vienna Airport

The Hungarian budget carrier has beaten bigger, sometimes more voluble, rivals in securing rights to cheap flights from Vienna, starting in April.  6

2 | 1 News THE EDITOR SAYS

EDITOR-IN-CHIEF: Robin Marshall EDITORIAL STAFF: Sonja Bencze, Zsófia Czifra,

Kester Eddy, David Holzer, Levente Hörömpöli-Tóth, Christian Keszthelyi, Gary J. Morrell, Rob Smyth, Ágnes Vinkovits. LISTS: BBJ Research (research@bbj.hu) NEWS AND PRESS RELEASES:

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EXCELLENT EXPAT CEOS ON PARADE At around ten tonight, as long as I have kept things running to schedule throughout the evening, the fourth BBJ Expat CEO of the Year will be named at our gala at the Corinthia Hotel Budapest. Once again, an impressive shortlist has been put together by our jury, with the final selection to be made from: Thomas Narbeshuber, executive director, BASF Hungária Kft.; Minas Agelidis, general manager, Coca-Cola HBC Magyarország Kft.; Christian Wolff, executive director, Mercedes-Benz Manufacturing Hungary Kft.; David Wiernik, president, NNG Kft.; and Marc de Bastos Eckstein, executive director, Thyssenkrupp Components Technology Hungary Kft. It is an international field of excellence, and truly reflects the talent pool of expat bosses here in Hungary. When the decision to launch the award was taken five years ago, Hungarian public discourse did not always treat multinational companies or those who run them as organizations and people that add value. The rhetoric often concentrated on what was taken from the country (usually in terms of repatriated profits), rather than what was added to it. It won’t, perhaps, surprise you to learn that was a vision of Hungarian business life we did not share. I am perfectly certain there have been bad expat CEOs, just as there are poor Hungarian CEOs. I am equally convinced - because I have been fortunate enough to meet and interview many of them in my 20 years here - that there are many outstanding expat bosses, just as they have outstanding Hungarian peers. Exhibit one in my case? Why, the shortlisted candidates for this year’s award.

THEN & NOW

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So, we set about creating an award that acknowledges the good that the very best expat CEOs bring to Hungary. The benefits that come from their different cultural backgrounds, their diverse skill sets and experience. Not better, note, but different. We never attempted to suggest that expat CEOs were better than Hungarian CEOs; we just felt the very best deserved proper recognition. That the event has grown in stature and size with each successive year is an indication that we were right when we spotted that hole, and that expat CEOs themselves have been increasingly happy to come along and show their support for their colleagues. It doesn’t hurt that it is quite a good party, too! And it is very much more than an excuse to partake in some self-indulgent back slapping. What expat CEOs do, in raising awareness of Hungary and its talented workforce at their home HQ, wherever that may be, is important in its own right. More even than that, in achieving all important bottom line progress, these bosses bring the sort of value-added jobs that keep Hungarians happy to work in this country, and might even attract some back home. So, who will join our roll call of Javier González Pareja (then CEO of Bosch Magyarország, before he was promoted and left the country), Jost Lammers (of Budapest Airport), and last year’s winner Jörg Bauer, then GE Hungary President? We will tell you the answer to that in our next issue, and perhaps reveal a little more about the secrets of their success. One thing is guaranteed; we will have our first winner whose forename doesn’t start with the letter “J”.

Kids celebrate “Farsang” at Budapest Zoo on February 2, when the institution organized a special family weekend for visitors. In the black and white photo, children celebrate the same event in fancy dresses in 1957. Farsang, or Carnival, traditionally starts in Hungary on the Christian feast day of Epiphany (January 6) and ends on Shrove Tuesday. It is marked across the country with balls and children’s fancy dress parties, as well as a number of folklore events.

MTI / Noémi Bruzák

BBJ

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Budapest Business Journal | February 9 – February 22, 2018

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Budapest Business Journal | February 9 – February 22, 2018

News

///macroscope

Mihály Varga: Economic Growth Leads to ‘New Era’ in Employment

KESTER EDDY

“Every Hungarian able and willing to work can have a job now,” Mihály Varga, Minister for National Economy, said in response to the latest jobs data. According to a ministry analysis, Varga spoke of a “new era” in employment following a “positive trend reversal” on the labor market, in turn resulting from “the government’s pro-growth economic policy and steady economic expansion”. Official unemployment numbers fell to 175,000 at the end of 2017, a decline of 30,000 year-on-year, while the number of those in jobs jumped by 36,000 to

4.45 million.

This resulted in an employment rate of almost 69% for the 15-64 age group, second only to Czech Republic in regional terms, and a little above the average of the European Union.

EMPLOYMENT RATES IN THE V4 COUNTRIES (%) EU 28

Czech Republic

Hungary

Poland

Slovakia Source: Eurostat

76 74 72 70 68

68.7

66 64

63.8

62 Q2

2015

The ministry analysis - to its credit - quietly acknowledged the roles of the “favorable global economy” and European Union funding in Hungary’s growth performance. It also argued that, with rising wages and decreasing pay roll taxes included in the recent six-year wage agreement with unions and business owners, employment trends would continue into ever more positive territory.

Less Sanguine

Government politicians, naturally, tout the latest figures as evidence for renewal of their mandates in April’s general election. Opposition figures, equally naturally, are less sanguine about both the numbers and government policy.

Roma: An Untapped Pool of Labor? The government has of late been promoting the potential of Hungary’s under-employed Roma population as a means to overcome labor shortages - an idea that, unusual for the country, finds strong support among opposition ranks. But economy minister Mihály Varga’s schedule presumably allows him little time to visit Roma settlements in the country, or he might refrain from making bold statements like “Every Hungarian able and willing to work can have a job now.”

2016

Q2 2017

BBJ infographic

News that unemployment in Hungary had fallen to a new low of 3.8% in the fourth quarter of 2017, coupled with rising wage levels - up 12.8% in the first 11 months of the year - was greeted with predictable enthusiasm in government circles. Opposition politicians and economists unconnected to the halls of power were less enamored.

Gergely Karácsony, the joint DialogueSocialist prime ministerial candidate, accepts that the economy is expanding, but says the main beneficiaries have been “circles close to the government” while the recovery has failed to include all segments of society. “Our job is to tell people that we can create a social and economic model that enables sustainable development to be realized without just getting money from the EU, while also ensuring that this growth includes all Hungarian society, instead of a select few,” Karácsony told foreign journalists on February 1. In contrast to this worthy statement, András Vágó, spokesperson for the Socialist Party, was blunter.

That, at least, was the essential reaction from one volunteer helping Roma on hearing the minister’s recent pronouncement. “The conditions of Roma are frightful,” the volunteer, who requested anonymity, told the Budapest Business Journal . “This [talk of getting jobs] is obviously nonsense. The whole thing sounds ignorant,” he said. The volunteer, who has been teaching Roma families in Tápiószele, a small town 56 miles (91 km) southeast of Budapest, said that the modern economy, which requires skilled workers, is largely off limits to the Roma minority, even if their

“The [official] stats include as employees: students working while studying, citizens who have been abroad for less than a year, but not working in Hungary, and employees in public works [schemes],” he told the Budapest Business Journal. In addition, he claimed people no longer eligible for places in public work projects are effectively forced to join cooperatives. “As a member of a cooperative, you’re an employed worker in the Hungarian statistics. The solution: change of government to see the market clearly otherwise it’s bogus.”

Improved Significantly

In a more nuanced critique, Gábor Karsai, deputy chief executive of GKI economic research company, told the BBJ: “Hungarian unemployment has improved significantly in recent years, albeit less than the official statistical data indicates. If we regard public works participants as unemployed - which is generally customary in the international arena - then Hungarian unemployment is actually at about 7.6%, or double [the officially announced] 3.8%.” As regards the government’s “progrowth economic policy and steady economic expansion”, GKI’s latest report forecasts growth in both 2017 and 2018 of around 4% - in agreement with government predictions - but notes that though this is above the European Union average of just

under

2.5%,

it is only “moderate in the Central and Eastern European region” and has been achieved in part only by special efforts to acquire EU subsidies in the early part of the current funding period. It warns that developments such as the near 30% growth in the construction sector in 2017 are “clearly unrepeatable” in 2018, while output from the auto sector has moderated and “poses a risk”. “The Hungarian growth rate is extremely cyclical, and this upswing is partly due to the surge in EU transfers, and partly to pre-election revitalization [i.e. additional state spending],” Karsai said.

ethnicity is not held against them. “So many jobs today need at least the eight years education, and very few Roma have even this,” he said. In addition, the effects of longterm unemployment are devastating, he said. “People forget how to work. It’s the same in any country.” While some Roma are employed by public works’ schemes, many others find casual work in agriculture. But such jobs largely disappear in winter and “if they come to Budapest, it’s too expensive to live,” our source said, adding: “Perhaps 15%” of the Roma in Tápiószele had regular work, the only good news being “it’s even worse further in the east.”

4 | 1 News

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Budapest Business Journal | February 9 – February 22, 2018

Futureal Achieves WELL Certification The Futureal Group has been awarded WELL Building “Platinum” precertification for its three current Budapest office projects: Advance Tower; Corvin Technology & Science Park (Corvin 5); and Budapest One Business Park. GARY J. MORRELL

The three complexes will collectively provide more than 100,000 sqm of WELL, LEED and BREEAM accredited office space. The Well building standard was established as a third-party interior sustainability accreditation system for multi-tenanted office buildings, and is designed to run in partnership with the LEED accreditation system. The Washington-based International Well Building Institute’s system examines the impact of buildings on the human body in terms of health and wellbeing and rates buildings based on seven categories: air; water; healthy nourishment; natural light;

Futureal Group started the construction of Advance Tower on Váci út at the end of 2016 and the project has also been awarded BREEAM certification. The 20,000 sqm project will be completed in two phases with an investment of EUR 68 million (HUF 21 billion). The EUR 90 mln Corvin 5 project will deliver 27,000 sqm of space in the Corvin Quarter urban rehabilitation development adjacent to the Nokia Skypark office building. The first phase of the office complex is expected to be handed over by the end of 2018. Futureal’s latest mixed-use project includes the

phased

70,000 sqm

Corvin 5. designers are increasingly designing projects

that conform to WELL specifications, “The WELL Building as tenants are showing a greater concern Standard, together with with interiors and the wellbeing of staff. The certification is relatively new, LEED and BREEAM however; there are currently just 34 WELL certifications, forms a pre-certified office buildings worldwide. complex system that leads WELL Committed to creating buildings “Futureal Group has committed to developing all of its future office that meet the highest buildings according to WELL Building sustainability requirements.” standards, since the health of the fitness; comfort; and mental freshness. The Well Building Standard aims to create office buildings that have a beneficial impact on the health, well-being and comfort of employees in addition to environmental protection, the institute says. Developers and building

employees working in the building must be a key priority during planning. The WELL Building Standard, together with LEED and BREEAM certifications, forms a complex system that leads to creating buildings that meet the highest sustainability requirements,” said Tibor Tatár, CEO of Futureal.

Budapest One office park next to Etele tér and Kelenföld railway station, a major multi-modal transportation hub at the western edge of the city. The first phase of the office park will deliver around 25,000 sqm of offices in addition to 2,600 sqm of retail and service units. “Futureal Group’s office buildings with WELL precertification at the ‘platinum’ level will achieve better indoor air quality with advanced ventilation and higher quality drinking water,” commented Gábor Radványi, chief architect at Futureal. “The complex will meet advanced international accessibility standards and increase the opportunities for physical activity and healthier nutrition options. Meanwhile, employees will be able to enjoy art works and biophilic solutions that can contribute to the better performance of colleagues through maintaining their physical and mental health,” he added. Both HB Reavis and Skanska have also committed to seeking WELL accreditation for their Budapest development projects.

Investor Sentiment Improving Across Region Investor sentiment towards Hungary is continuing to improve as investment volumes in 2017 reached around EUR 1.7 billion according to CBRE. JLL have traced EUR1.84 bln worth of investment for 2017. GARY J. MORRELL

“This is the highest level for the last ten years. The outstanding weight of capital clearly signals the returned and strengthened confidence of investors towards the Hungarian market and increased liquidity in every asset class,” commented Benjamin Perez-Ellischewitz, head of capital markets at JLL Hungary. The most notable investment deal at the top of the market is seen as the purchase by the Germany-based asset

manager Corpus Sireo of the 14,500 sqm Eiffel Palace for circa EUR 54 million from the National Bank of Hungary at a reported yield of 5.25-5.4%. The turn-ofthe-century building was redeveloped into a landmark office building by the Hungarian developer, Horizon Development. The leading CEE investment destinations continue to be Poland and Czech Republic, with 39% and 27% shares respectively last year. These were followed by the resurgent Hungary at 14%, Romania (8%) and Slovakia (4%). Investments into CEE reached a total of almost EUR 13 billion for 2017,

representing a 3 % increase on the 2016 total according to JLL and for the second year running a new record transaction volume for the region.

Solid Pipeline

“With a solid pipeline of transactions set for 2018, we expect another strong year. Our forecasts for the full year suggests CEE regional volumes will reach in excess of circa EUR 12 billion, which could challenge the new record set in 2017,” said JLL. Mark Robinson, CEE research specialist at Colliers International, argues that the escalation in economic growth momentum through 2017 has taken the CEE-6 (Bulgaria, Czech, Hungary, Poland, Romania, and Slovakia) real estate leasing and investment markets closer to a cyclical peak. “Sentiment indicators are still pointing towards a further expansion in CEE-6 investment volumes in 2018 over and above 2017’s cycle high at EUR 12.9 bln. Solid GDP growth in Europe (2.5% yearon-year in 2017) is a support for CEE exports. Increased general investment in

Eiffel Palace. the CEE-6 from local sources and the EU, as well as consumption, should see the region approach peak economic growth. The cycle may top out in 2018,” Robinson said at the EU Property Briefing for Hungary and CEE. Based on indicators for the first quarter, investment volume for 2018 could reach a record EUR 2 billion with multiple bids for available products according to Bence Vécsey, head of investment services at Colliers International Hungary.

1 News | 5

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Budapest Business Journal | February 9 – February 22, 2018

Hungary Aims at Becoming Regional Blockchain Hub According to Dr. Viktor Dombi, founder of RowanHill, the goal is to develop blockchain systems for different industries and capitalize on its advantages. “However, joint efforts are needed to get the most out of it, and that is exactly why BCC was set up,” he noted. “Blockchain could be the engine of the European economy, and we will have the opportunity to engage Hungarian expertise at a high added value level.” Ervin Jobbágy, managing director of Interticket, compared the current situation to the dawn of the internet. Just as the entire economy was disrupted by the worldwide web back then, a similar thing is likely to happen now thanks to blockchain.

Blockchain technology is expected to disrupt a wide range of industries. Hungary aims for early dominance in the field, not least thanks to the establishment of a competence center. LEVENTE HÖRÖMPÖLI-TÓTH

With the rapid rise of cryptocurrencies, the buzz word “blockchain” has quickly infiltrated everyday language. It has also become apparent that its significance goes well beyond FinTech, meaning governments all over the world are embracing the trend, including Hungary’s. “In the course of digital transformation, there are no pre-destined winners and losers; every nation has the same chance at the starting line,” said Tamás Deutsch, government commissioner of the Digital Wellbeing Program at the opening ceremony of the Blockchain Competence Center (BCC). “We have realized how critical blockchain is, so it will be treated as a field of strategic importance,” he explained.

From left to right: Tamás Deutsch, Péter Benedek, Dr. Viktor Dombi, Ervin Jobbágy. Deutsch announced a strategic partnership with BCC, which was founded by RowanHill Global and InterTicket to serve as an incubator and a knowledge hub for blockchain solutions. “It doesn’t happen often that we can be pioneers of a disruptive tech change,” he added. “Europe is lagging behind in the ICT race compared to the United States, and forming an alliance with BCC will help catch up.” As a result, it should be a realistic goal for Hungary to become a regional hub for blockchain solutions. As he noted, an extensive national FinTech strategy is due to be drawn up by the end of the year, which should give further impetus to the effort. Péter Benedek, the managing director of BCC, emphasized that the newly established entity is designed to connect blockchain developers with corporate partners and the administration.

“The technology embodies a new system of authentication of records,” he said. “In the future, registers, financial and other services or even parliamentary elections will function with the help of a digital solution, which offers simplified, less costly, irrevocable transactions, and rules out abuse entirely.”

Migration Security

Blockchain is a lot more than a bank transfer, Benedek noted. It is a transaction recording where some value migrates from point A to point B. The security of that value migration is now taken to the next level, which explains the global hype surrounding the technology. “In order to ride the wave of this revolution, an education platform is needed that simultaneously hosts firms dealing with development. This is what BCC is about,” Benedek added.

“In the course of digital transformation, there are no pre-destined winners and losers; every nation has the same chance at the starting line. We have realized how critical blockchain is, so it will be treated as a field of strategic importance.” “We need to gather and disseminate all related knowledge by connecting the physical and the digital world and by bringing together stakeholders,” Jobbágy said. “Regulatory environments will also be affected, and several countries are working on attracting innovative companies, thus revving up their competitiveness. Fortunately, we were among the first to realize the significance of blockchain, and we can make it to the top in the region. And that’s the idea: to lead the charge in CEE.”

Travel Industry Celebrates its 26th Annual Awards Optimism, a great mood and some important questions were on the agenda for the leading annual event of Hungarian tourism, organized by Turizmus Kft. LEVENTE HÖRÖMPÖLI-TÓTH

High-ranking representatives of the Hungarian tourism industry gather once a year on February 1 to assess the previous year, look at the tasks ahead, and award key players in the market. The 26th edition of the gathering welcomed

1,187 guests,

although for the first time ever no one from the administration was presented at the conference. Therefore, speeches were delivered solely by professionals. Giles Clavie, CEO and president of ORBIS-ACCORHotels welcomed participants by giving an overview of the

latest achievements of the hotel chain he is in charge of. The brand-new iStyles at Budapest Ferenc Liszt Airport got extra focus as attendees had the opportunity to take a VR tour of the venue from the Budapest Congress Center, which hosted the event. One of the highlights was an on-thespot poll that allowed leading professional organizations to get an idea about what approach the cream-of-the-crop of the industry has vis-á-vis certain questions. It was interesting to see how obvious the majority support was in many cases.

VAT Cuts

Most participants backed the idea of cutting VAT of mineral water to 5%, and radically decreasing social security contributions, for instance. The majority also spoke out for

making the hotel segment and canteens subject to 5% VAT and a 4% tourism development contribution, as is now the case for restaurants, albeit with restrictions. The opinion was also widely shared that the tourism development contribution should be spent on awareness campaigns to attract more customers and thus boost revenues. The evening was a great occasion to reveal the latest edition of the “50 Most Influential Persons in Tourism” publication by Turizmus Kft., which features the most renowned personalities of the local scene.

The climax of the event was the awards ceremony where

professionals

and organizations (pictured) were awarded for their achievements in the year 2017. Categories included car rental, tour guides, campsite runner, event manager, travel agency and festival organizer of the year. Entertainment was taken care of by the Dirty Led Light Crew, who were followed by a gala dinner and active networking.

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Budapest Business Journal | February 9 – February 22, 2018

Business

Wizz Air Claims to be 1st ‘Wooden Bench’ Provider at Vienna Airport

In the local vernacular, they call the likes of Wizz Air “fapados”, literally a “wooden bench” airline. But the Hungarian budget carrier has beaten bigger, sometimes more voluble, rivals in securing rights to cheap flights from Vienna, starting in April. KESTER EDDY

News last month that Wizz Air is to set up a base in Vienna with three Airbus aircraft operating by the end of the year resulted in a modest ripple in general news rooms - mostly comprising copy-paste reports of the press release in the digital media. Starting with one A320 in April linking Vienna with Gdansk (Poland), Tuzla (Bosnia), and Varna (Bulgaria) the “wooden bench” Hungarian carrier will add two stretched-fuselage A321s by November, providing the Austrian capital with a total of 69 flights per week on

17 new

routes ranging from Thessaloniki and Tel Aviv to Bergen, Dortmund, Rome and Valencia. In the grand scheme of Central East European aviation, this development may not appear especially significant. True, Wizz Air reports that the establishment of

RIVAL REGIONAL AIRPORTS

Vienna Budapest

HUNGARY AUSTRIA

24.4 million pax in 2017

BBJ infographic

the base will directly create 120 new jobs and represents an investment of USD 331 million - not the kind of sum any company throws around without thought. But even if all were occupied, the addition of 450,000 extra seats in and out of Schwechat this year (the total Wizz capacity) will add just 1.8% to the airport’s expected 25 million total passenger count for 2018. Yet the Wizz Air move is more significant than mere numbers suggest: indeed, as József Váradi, the carrier’s chief executive, told the Budapest Business Journal, Vienna Airport has been less than enthusiastic in welcoming budget carriers to its terminals (see sidebar for the Ryanair view).

Unwelcome

“I can tell you that the first time we had discussions with Vienna Airport was over ten years ago. We were very unwelcome at that time,” Váradi says. Back then, Wizz Air was looking to fill the void left by Sky Europe, which collapsed in 2009 after pioneering bargain-basement flights in the region from 2001. More recently, Vienna Airport has clearly had second thoughts on budget carriers. “The airport has become more flexible.… and, as a result, finally we were able to

Wizz Air posts record numbers in Q3 results Wizz Air reported a record 7.1 million passengers, a 24.3% increase, for the three months up to December 31, the company’s fiscal third quarter. Profit for the period was a record EUR 14 million euros, up 3.6%. Load factors – the percentage of seats occupied - increased 1.4 percentage points to 89.4%. Wizz said traffic had been boosted by the collapse of the U.K.’s Monarch Airlines group.

13.1 million pax in 2017

Source: Budapest Airport, Flughafen Wien Group

come up with an agreement which makes sense for us,” Váradi says, adding, with a chuckle, “It took them ten years, but they’ve come round, yes.” What exactly “makes sense” is not revealed: neither Austria in general, nor Vienna Airport in particular, is famed for a low-cost business environment, and Váradi, implying room to maneuvre is limited on all sides, merely says: “We look at cost-of-living differences, and we will make some minor adjustments”.

Attractive

However, since Wizz Air already boasts Austrian pilots on its books, its employment rates and conditions are clearly attractive to some. It is also clear that with 282 new planes due for delivery between now and 2026 (Wizz currently operates “just” 88 aircraft) it is eyeing further expansion at Vienna in the immediate future, and from regional Austrian airports in the medium- to longterm. “We are looking at [this] announcement as a start, and we hope to bring more news to the market fairly shortly, sort of as a continuum,” Váradi said. But at just 140 miles from the Hungarian capital and less than half that from the western Hungarian city of Győr, could developments at Vienna threaten growth at Budapest Ferenc Liszt International Airport - where low-cost carriers helped boost passenger numbers by 14.5% to a record

13.1 million

last year? “Not significantly” says László Kurucz, spokesperson for Ferenc Liszt operator Budapest Airport. “Theoretically, pax

Wizz Air Steals a March on Irish Rival – but Emerald Isle Carrier may Strike Back A little under two years ago, at the end of a long interview over dinner in Budapest, your correspondent asked Kenny Jacobs, Chief Marketing Officer for Ryanair, to name a wish: “Which airport in this region would you like to see cut their fees - a 25% discount - if you could have one choice?” The ebullient Jacobs is a journalist’s dream: brought up in Cork, closer to Blarney Castle than the average tarmac trek to a Ryanair 737, this master of marketing (the man behind the Irish budget carrier’s “Always getting better” campaign) is rarely quiet. But this question produced a full eight seconds of deeply pondered silence. “Could I take... all the Austrian ones?” he quizzed back, quickly adding by way of justification, “Geographically, it’s in this region!” Jacobs had clearly been eyeing potential destinations in Hungary’s western neighbor, but, frustratingly, all to no avail. Its airports, he said, are “just too expensive for any airline to grow in. Not even low-cost [carriers].” Wizz Air’s move into Vienna is therefore a more notable expansion than might appear at first sight. When asked if Ryanair would respond to its rival’s entry into the Austrian market, spokesperson Robin Kiely responded: “We are always interested in new airports and routes, including in Austria, which are dependent on demand, available aircraft capacity, a viable airport deal and our required operational needs being met.” Ryanair later stated on January 15 that it had contacted the Austrian administrators of Niki Luftfahrt GmbH - the legal owner of the assets of defunct Austrian carrier Lauda Air - and “expressed its interest in participating in the insolvency process and the potential purchase of remaining Niki assets”. Those assets include landing and take-off slots at Vienna airport. Ryanair may yet strike back.

[passengers] can take the train from Vienna to Budapest, but taking into consideration that the available fares are very competitive from BUD [airport] and it would increase the duration of the journey, we do not expect significant number of pax loss,” he told the BBJ.

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Budapest Business Journal | February 9 – February 22, 2018

Business

American Football in Hungary: Final Breakthrough Within Field Goal Distance this point, HUF 1-2 million buys you a team name sponsor title at any HFL club, which is enough for nothing in any other sport with decent media coverage. Bachrathy argues with reason that there is hardly a better choice than sponsoring American football in Hungary in terms of value for money. “If you are a businessman and you consider funding sports clubs, HFL ensures nationwide visibility for a fraction of the financial resources you would normally need to achieve the same elsewhere,” he says. “It is a positive brand with huge growth potential and extensive media coverage. In short, now is the time for sponsors to get in the game.”

American football has built a massive fan base in a matter of years in Hungary. With a steep growth curve ahead, there seems to be no better time for would-be corporate sponsors to get in the game.

LEVENTE HÖRÖMPÖLI-TÓTH

When local cable channel Sport1 broadcast its first National Football League (NFL) games back in 2004, few would have thought that less than one and a half decades later American football would have gathered a massive following in Hungary. The Super Bowl, which took place very early on Monday morning (February 5) local time, was expected to have drawn an audience of around 200,000. The Hungarian Association of American Football (MAFSZ) is in charge of organizing three adult and two junior divisions in the country. As Kornél Bachrathy, its secretary general, tells the Budapest Business Journal, the effort was initially hampered by obstacles typically faced by SMEs. Everything needed to be built from the ground up. The hard work seems to have paid off, though. Twenty-four teams, more than

2,000 registered

players and an ever-improving image are among the main achievements of the

Kornél Bachrathy, secretary general of MAFSZ (left) and Márk Bencsics, QB of the Hungarian national team and NFL commentator on Sport1, pictured at a Hungary vs. Slovakia game in the summer of 2017. past 13 years. “We have 15,000 Facebook followers. Many conventional sports would only dream of such a figure,” Bachrathy says. Although no official game attendance statistics are available, many first or second division soccer teams have reason to envy the Hungarian Football League (HFL). In Székesfehérvár, for instance, where the first dedicated American football stadium in the country has been built, well over 1,000 attend regularly. Other HFL hubs in the countryside draw similar crowds.

The Soccer Lobby

“Infrastructure is key here, and problems abound, especially in Budapest, since there is no dedicated facility available,” Bachrathy notes. “You cannot compete with the soccer lobby. They have so much money that you just can’t rent football stadiums for HFL games.” Given what little access MAFSZ has to funding from the government or tax payers, it borders on a miracle that it has gotten this far. Unlike spectator sports such as soccer, water polo, handball, ice hockey and basketball, American football

is not eligible for so-called TAO funds, which come from specifically earmarked corporate income taxes. Annual government funds to MAFSZ total a meager HUF 3.5 million. By contrast, in December, Magyar Közlöny (the official state gazette of Hungary) said the government would spend HUF 37 billion on soccer in 2018. According to independent investigative website atlatszo.hu, by 2020 at least HUF 215 bln will have been spent on stadiums since the Orbán cabinet returned to power in 2010. “Ours is not an Olympic sport and no significant team achievement is to be expected from us; therefore, we’ve got no chance to become eligible for TAO,” the secretary general explains. And it is also irrelevant that American football’s popularity already outshines several other conventional Olympic sports like wrestling or volley ball. Bachrathy says last year’s volley ball national final was witnessed by 400 fans at the venue of Pénzügyőr, a Budapest club; HFL’s final, the Hungarian Bowl has seen attendances of as much

6,000.

GOVERNMENT SUPPORT

HUF 3.5 mln

BBJ infographic

Source: MAFSZ, Magyar Közlöny

HUF

bln

Consequently, MAFSZ operates mainly from membership fees and sponsorship money. The same goes for the clubs. Due to the limited finances, there are still only a handful of foreign players that actually get something of value for their services like a rented apartment. Most players are involved on an amateur basis. Municipality support is what usually makes a huge difference in terms of finance.

Sponsors Wanted

“Our product is perceived as a lot more professional than it truly is,” Bachrathy says. “This marketable and enjoyable product is bound to bring in more sponsors and more government funds over time.” For now, large chunks of sponsorship money can only be dreamed of. At

A Hail Mary Move “Digi broadcast the Hungarian Bowl live for the first time two years ago. It was more like a Hail Mary pass on their part, but it worked. The venture proved to be a hit,” says Kornél Bachrathy. Interest climbed to new heights in 2016, to the extent that the newly built MTK football stadium in Budapest had to be rented to host the event. The outcome was an entertaining final in front of packed tribunes and a great show in good old American fashion. Of course, in terms of viewership, the Hungarian Bowl is still not anywhere near events like the Champions League Final, the Formula 1 Grand Prix races, or the Super Bowl itself. The latter is also famous for its whopping advertising costs (a 30-second commercial will have set back the advertisers USD 5 million this year). Even if it wanted to, the Hungarian Bowl can’t capitalize on its own hype since TV channels in Hungary sell advertising time in yearly bundles. Digi clearly treats HFL as a valuable product. The number of games broadcast per season will rise from 10 in 2017 to 15 this year, while its game day magazine show will be an hour long, compared to the previous 30-minute shows. The channel is available in 1.5 million households, so the potential for a wide outreach is there. The fact that Hungary will host the American football 2020 FISU University World Championship should further raise the profile of the sport. “The biggest media value is attached to our signature events such as the Hungarian Bowl and the games of the national team. We do everything in our power to make them a highly memorable occasion which helps raise the media value of our brand as well,” Bachrathy adds.

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Business

www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

HIPA on FDI: ‘Quality is the new Quantity’ The Hungarian Investment Promotion Agency is tasked with attracting foreign direct investment (and reinvestment) to Hungary, and to ask as a go-between for industry and the government. Róbert Ésik, the president of HIPA, spoke to the Budapest Business Journal about another recordbreaking year. ROBIN MARSHALL

How much FDI did HIPA attract in 2017, and how does this compare to previous years? How many jobs will be created as a result of those deals? Hungary’s popularity among foreign investors is on a continuous rise and the number of investment projects negotiated by HIPA has been increasing every year. We completed a busy but exceptionally

Róbert Ésik (right), president of HIPA explains the 2017 results with Péter Szijjártó, Minister of Foreign Affairs and Trade, looking on. successful year with a record number of 96 positive investment decisions for Hungary, supported by our agency. As a result of these projects, with a total investment volume of EUR 3.512 billion, 17,021 jobs will be created in Hungary. Between 2014 and 2017, positive investment decisions for Hungary, supported by HIPA created almost 60,000 jobs in our country. That is the equivalent of creating a job for every person living in the city of Zalaegerszeg. Is there a particular stand-out deal HIPA was involved with? I cannot name an exact investment, because we had lots of projects to be proud of. Just to give you a few examples, we started last year with the announcement of Blackrock’s new innovation center in Budapest, Itron chose our capital for its new European knowledge center, Diehl Aircabin extended its activity in Hungary with a new engineering center in Debrecen.

Hungary has become a hub for e-mobility and autonomous driving: Samsung SDI opened its factory in Göd, while GS Yuasa, a major Japanese lithium-ion battery manufacturer, will establish its first European facility in Miskolc. Which countries are the biggest investors in Hungary? With regards the relative distribution of our result in 2017, Germany dominates in every aspect. Twenty-nine positive decisions were made by German investors, having a share of almost 40% in our results in job creation. The United States kept its position as one of the top three most important partners of Hungary, with ten projects creating 1,616 jobs. A record number of 18 projects are related to Hungarian companies, which shows well how the Hungarian economy is developing. Which are the most important industries? Are the numbers still dominated by automotive and SSCs, or are other industries coming to the fore? Hungary further strengthened its position in the automotive industry. Altogether,

36 of our

projects are related to the vehicle industry, with an investment volume of EUR 1.548 bln, creating 6,727 new jobs. Electrified and autonomous: Two words to describe the development of the sector in the last couple of years. The supplier base related to automotive has been expanding continuously. Ten Pao, the Hong Kongbased battery supplier of Bosch, has chosen Miskolc for its first overseas expansion. The investment, valued at more than EUR 14.3 mln is foreseen as leading to the creation of 300 jobs and could result in further expansion in the short-term. One of the world’s leading automotive suppliers, France’s Valeo, continues to expand its manufacturing and R&D complex in Veszprém. The projects will create a high level of automated production environment which

provides an opportunity for increasing labor-intensive areas generating higher added value. Also, robots and cobots (cooperating robots) will be procured as part of the development.

“This […] shows that stepping up to ‘Invented in Hungary’ is not just a strategic goal of ours; it is already happening now.” Continental, the German automotive giant, is establishing a Deep Machine Learning Competence Center in Budapest, with a focus on autonomous driving. This project is an important milestone for the industry and shows that stepping up to “Invented in Hungary” is not just a strategic goal of ours; it is already happening now. As for the service industry and R&D centers, we also moved up the value chain. In the SSC sector, the clear trend is that companies are increasing the number of high value add positions and implementing digitization. Moreover, 80% of Hungarybased SSCs plan to expand in the shortterm in Budapest and also in countryside locations, so robotics does not result in downsizing. There are a lot of companies who have decided to develop their production activities with R&D or shared services centers. FrieslandCampina voted for Budapest to set up its third services center after the Netherlands and Malaysia. The team of 150 professionals will provide financial services for the EMEA operations of the company. Viessmann, a leading manufacturer of heating, refrigeration and industrial heating systems, announced an investment in Pécs. The shared service

www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

center will be responsible for the technical services in after-sales activities. The food industry held its strong position: seven projects with EUR 215.2 mln investments created

1,281 jobs.

One of them is the HUNENT waterfowl processing company, one of the biggest waterfowl producers in Hungary. In recent years, the company had become a significant market player not only in the domestic market, but also in several member states of the EU and also in the Far East, which is mainly due to its high-quality products. The new facility will be unique in Europe, since there are only a few duck slaughterhouses and processing plants having a similar level of capacity and technological development. In addition to the key industries, new sectors are developing rapidly, such as the aircraft industry. Diehl Aircabin is not only expanding in its Nyírbátor facility, but is to open an engineering center in Debrecen. The 150 Hungarian engineers will provide support primarily to the company’s internal departments. RUAG Aerostructures, a major player in the aerospace industry, opened a new factory in Eger. It will be the Swissbased aircraft section producer’s third plant, complementing those in Germany and Switzerland. The investment is worth EUR 6.15 mln and creates 180 workplaces. What is the percentage split in terms of FDI between Budapest and the rest of Hungary? Are there any regions which are beginning to attract more investments?

In terms of regional distribution, most projects (15) were implemented in Budapest. It is followed by Pest county (ten), Borsod-Abaúj-Zemplén, Hajdú-Bihar, Heves and Győr-Moson-Sopron counties (eight each). An increasing attention can be seen in the southern part of the country: for example, the investments of Magnus and Viessmann in Pécs, and BP’s new service center in Szeged.

“Hungary was ranked fifth based on the value of new jobs created, ahead of countries such as Switzerland, Japan and Sweden, in addition to the competitors in the region.” We are committed, besides promoting Hungary as an investment location, to turn our country into an even more investor-friendly location. Last year, the management team of HIPA and I visited several cities which have increasingly become a subject of interest for investors. The trips - part of the after-care of HIPA’s Investor Friendly Location program - aimed to ensure that municipalities manage both already established and potential foreign investors even more professionally, and to discover new potential development sites.

What will be the priorities for HIPA in 2018? Are there any new incentives in the pipeline? The incentive system has been modified in line with our strategy of attracting more high value-add investment projects: we have introduced two new forms of incentives from January 2017: the R&D cash subsidy system as well as the so-called technology intensive subsidy scheme, which focuses on the level of technology instead of the newly created jobs. We further updated the latter form of support in November 2017, making it even more attractive to companies seeking to improve their productivity in Hungary. The Hungarian investment environment has also received prestigious international recognition: Based on the remarkable IBM Global Location Trends 2017 report, from among the three most important categories, Hungary ranked among the world’s top ten in two. According to the report, thanks to FDI, 18,900 new jobs are being created in Hungary based on 2016 investor decisions, which is the ninth best result in the world per inhabitants. However, what is even more important is that Hungary was ranked fifth based on the value of new jobs created, ahead of countries such as Switzerland, Japan and Sweden, in addition to the competitors in the region. We have a clear objective: further promoting “Invented in Hungary” type investments. This means quality is the new quantity. How does HIPA seek to help investors who might be worried by the labor shortage? A lot of changes were introduced regarding taxation on labor last year. In

Business | 9

terms of labor mobility, the tax-free amount of the commuting allowance has been significantly increased, and a new form of

FDI in Hungary, 2017 96 projects EUR 3.512 bln invested 17,021 jobs created

BBJ infographic

Source: HIPA

tax-free housing support has been introduced, parallel to the reduction of the overall social contribution tax from 27% to 22%. In 2018, additional steps were made such as the increase of the tax-free housing support to up to 60% of the minimum wage, and the opening up of possibilities for municipalities to apply for funds to offer housing solutions for employees of local companies. In addition to tax changes, the dual educational training scheme has been further enhanced with a target to reach 70,000 students in the 2018/2019 school year.

Your essential Guide to Investing in Hungary including articles looking at the benefits available, case studies, EU funding, and commercial property investment.

AVAILABLE TO ORDER NOW Order: Business Publishing Services Kft. +36/1 398-0344; circulation@bbj.hu

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Business

www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

Media Intelligence Platform Expands From Hungary to U.K. A Hungarian-based media consultancy has now expanded into the United Kingdom as the next step of even grander plans.

Painful Work Removed

“You can monitor the financial performance of media companies and the complete market. We do the painful work of public data collection and validation, so our clients can benefit from the easy-touse platform and tailor-made analysis,” Incze tells the Budapest Business Journal. Members of the core management team alongside Incze include co-COO, Szilvia Marton, and chief research officer Timea Nagy, who worked aside Incze as a media research director at Universal McCann for 17 years and joined Whitereport in 2012. Marton, who served as sales and marketing director at TV Paprika, is a former client of Mrs. White Media Consulting, and joined in 2008.

BRIDGET DALEY

Kinga Incze launched her own media consultancy business in 2002, and co-authored a handbook on media planning in the same year. Whitereport, her latest endeavor, is an independent cross-media data aggregation platform, of which she is founder and CEO, and had already enjoyed global acclaim before the move overseas. Incze graduated with a psychology degree in 1994, and began her career as a market researcher. She later held posts of media planner, media director and managing director at Universal McCann Hungary, and was CEO at Magna Global Hungary. She describes the beginnings of both the consultancy, Mrs. White Media Consultancy, and Whitereport as an “organic process”, in part driven by what she saw as unnecessarily unsafe business decisions, devoid of expertise on hidden media. Whitereport was launched in Hungary

“I believe that business-tobusiness and businessto-government decision makers need to be provided 21st century tools to keep up with market reality and make better, faster and safer decisions”.

2011.

Incze says that as a media expert, she continually found that the fragmented, cross-media market was not transparent enough in terms of media supply and demand. Whitereport aims to track media supply and demand changes via “validated and mostly public data aggregation”. The aim of Whitereport, she says, is to shorten the time consuming task of gathering all the relevant facts for a media development or market analysis project. “We had no idea how big the market is, [who] the hidden players are competing with the big players, what themes are booming, how big and how profitable the market is, and how SMEs are represented [in] the market. I just wanted to solve an information gap problem and instead of perceptions wanted to see the clear, big picture. So, we developed this tool,” she explains.

Bigger Markets Needed

The company officially expanded to London in the late fall of 2017. Incze says the team decided to do so because it needed to cover a big market for the tool to become more

United Kingdom, which it describes as “just the tip of the iceberg”. As Incze describes it, Whitereport essentially lists the complete cross-media supply (television, radio, print, online, cinema, etc.), media ownership facts and key financial data within seconds. Users can also modify their searches based on settlements, owners, platforms, and themes.

From left: Szilvia Marton (COO), Kinga Incze (founder and CEO) and Timea Nagy (CRO). global, and this would be more difficult to do from a smaller market like Hungary’s. Although it is currently focusing its efforts on a scale-up in the United Kingdom, it plans to expand to Germany upon reaching critical mass in Britain. The British board members are Hamish Sandison and Phil McCauley, who are, respectively, a lawyer and a management consultant. Sandison says Whitereport intends to advise U.K. media owners, investors, brands, and regulators to keep up with the changing reality of the market and enable them to make better decisions. McCauley believes that all industries are currently transforming, including the media

business intelligence market, and Whitereport is a pioneer in it. Forbes Hungary wrote that before Whitereport was launched, decision makers only had access to data on a mere 20% of the media industry; the Hungarian Media and Infocommunications Authority, RTL Hungary, and professional bodies all benefit from the wider, factual and cross-media market approach of the fragmented media supply, financial and commercial aspects . The company claims to provide searchable data on more than 11,000 media companies and

6,000 media

service providers in Hungary, and a further 1,164 media companies in the

When asked what makes the company unique, one of the aspects Incze mentioned is that not only does the core-management team consist of experienced media experts with huge professional and management skills, but it also happens to be three women, which is certainly distinctive in a field where men have traditionally dominated. Incze explains that “most of the current media regulation was born in a different era of limited media supply”, and “Whitereport’s evidence of the new reality might impact public policy and regulatory and competition decisions”. The scaleup company has already achieved international recognition and acclaim; in 2016 it was selected by Collision US and Pioneers Vienna as one of the most promising new data innovations. It exhibited this past November at the Lisbon Web Summit, in the ALPHA startup category. Incze sees increasing need for the service her tool provides. “I believe that business-to-business and business-to-government decision makers need to be provided 21st century tools to keep up with market reality and make better, faster and safer decisions”.

www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

Business | 11

Cellum and Telkom Indonesia Target Number 1 Spot Hungary’s Cellum Global is hoping to help make Telkom Indonesia the number one FinTech provider in the archipelago state within one year. In return, Telkom is taking a minority 30.4% stake in the mobile wallet provider. ROBIN MARSHALL

Cellum Global Chairman-CEO János Kóka declined to disclose how much money Telkom is injecting into Cellum, citing local capital market rules, but did say it was “significantly more” than the

USD PortfoLion 3 million

(the venture capital arm of OTP) had paid in Series A funding in 2011. Operative control of Cellum will remain with its current management. “I believe there has not been any similar FDI from Indonesia in Hungary before, and I am sure this is the first of its kind in technological investments,” Kóka told the Budapest Business Journal in an exclusive interview before the announcement was made public. In sport they tell you getting to number one is the “easy” part; holding on to the position is where it becomes really difficult. But Joddy Hernady, senior vice president for media and digital services at Telkom Indonesia told the BBJ that, with the disruptive technologies in play in the digital world, you need to be ahead of the competition.

number of bank cards [per capita] is significantly lower; people use e-money services for transactions. We have a unique capacity to tap into this ecosystem,” said Kóka. The same access would be impossible to achieve for a small Hungarian scale up on its own. “The opportunities there are endless,” he added. “Jakarta is a city of ten million at night, and 30 million during the day. That’s 20 million people commuting daily. It has multiple cities the size of Hungary. Transactions are increasingly electronic: ticketing, tolling, parking, congestion charges. All this requires seamless solutions,” Kóka explained.

Robust and Agile

“We have always been looking for value added investors. You need money to develop products, markets, R&D, but we need someone who can give us far more than just cash. Telkom gives us inroads into the largest FinTech market. This was the right approach for us, rather than traditional FinTech investors in the United States or London who do not understand the specialties of the Indonesian market.” “Currently we are number four in FinTech, but the others are not so far ahead and we are still at an early stage. The right time for us to move is now, as this appears to be a ‘winnertakes-it-all’ game. Even in China there are only two big players. It is very important to lead the market. By the end of this year we should be number one,” Hernady says.

Perfect Sense

For Kóka (Hungary’s former Minister of Economy and Transport between 2004 and

2007), the link up with Telkom Indonesia, through its wholly-owned digital services subsidiary Metranet, makes perfect business sense. Telkom already has positive experiences of working with Cellum’s FinTech platform, which is also being trialed by Indonesia’s state motorway management agency for its digital toll payment system, he said. “We have always been looking for value added investors. You need money to develop products, markets, R&D, but we need someone who can give us far more than just cash. Telkom gives us inroads into the largest FinTech market. This was the right approach for us, rather than traditional FinTech investors in the United States or London who do not understand the specialties of the Indonesian market.” That market is the real prize for Cellum, given its goal of expanding beyond the confines of CEE. “It is the world’s fourth biggest country and growing very fast. Half the population is under 30. […] It has a population of

260 million,

and 300 million [mobile phone] subscriptions, 90% of which are pre-paid.” The wide distribution of smartphones takes on an extra dimension when combined with one other factor. “One of the specialties of Indonesia is that the

Hernady said Telkom targets both B2B and B2C business and, given its “number one” ambitions, “it is important to support that with a very good unified platform that is robust, has good technology and offers agile development when it needs updating”. Adding Cellum’s mobile wallet and secure e-payment solutions helps Telkom build “very compelling user cases” Hernady believes. Kóka has been appointed a FinTech advisor to Telkom Group, and has presented it with a five-year plan based on their agreement. He said success in Indonesia will open up possibilities right across Southeast Asia. And tools that are developed for that rapidly expanding market will also be adaptable nearer home. “Reverse transfer is easily imaginable. Just as we are taking proven solutions from Europe to Indonesia, at the same time what is developed there can be used here. This is the beauty in having Telkom as an investor; it is not counterinterested. As we grow, its share-holding increases in value.”

Telkom Group was founded in 1965. The government of Indonesia holds 52.09% of the shares, with the remaining 47.91% traded on the Indonesian Stock Exchange (as TLKM) and the New York Stock Exchange (as TLK).

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12 | 2

Business

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Budapest Business Journal | February 9 – February 22, 2018

Single Digital Market Should Help Hungary Catch up in Data Use Thus far, it has mainly been large companies in Europe that have used data to improve their businesses, with SMEs are lagging behind. Being a small country, Hungary should take advantage of the scaling and networking opportunities of the EU’s Single Digital Market to exploit the business value of the data market, says internationally acknowledged data expert Gabriella Cattaneo. She spoke to the Budapest Business Journal about her latest research findings.

to digital transformation. IDC has a number of forecasts: this year we made a prediction that, by 2020, half of large companies will generate revenue from the sales of data. You mentioned large companies, but how are SMEs doing? This is exactly the key of our scenarios - clearly this will only become a mass market when small- and medium-sized companies take advantage [of data] as well. By large companies, we mean companies with digital capital. In order to use your data assets, you need to have an advanced information system. Digital SONJA BENCZE transformation and data innovation are adopted by a lot of medium-sized This is the fourth year you have innovative companies in certain sectors. published a report. What are the major By size, manufacturing is the industry differences compared to last year or of with the largest data market value - it four years ago? is driven by industry 4.0. and several When we started it in 2014, it was a other factors. Finance is the other big relatively small, emerging market; now sector and ICT; here telecom and media it is becoming much more relevant. companies are driving the way. Yet, even The number of companies actually if the market value in manufacturing experimenting with or using data is high, the percentage of data users technologies has increased a lot. We in companies is low, so there is a lot of have a much better understanding of the potential to grow. Utilities is another potential and the business value of this sector with a lot of data companies. market. Now is the moment when we are The figures seem rather small. moving from innovation to business value; Not if you consider that 99% of we are entering a period when companies companies in Europe are small. SMEs are starting to extract values from data and are lagging behind when it comes to increase revenues. There is an exponential digitalization and the use of data. They increase in all the areas in which are part of ecosystems, so those that are companies are using data. This is due to a part of the value chains of large companies combination of platforms: cloud platforms are being driven towards this kind of have become widespread, and there is the innovation. At the moment, for traditional emergence of Internet of Things. SMEs like small shops it may not even be Companies needed to become digital to necessary - in time, there will be mass increase productivity, etc., and data is the key market services available for them and

they will use those. It is different, for example, for FinTech startups, of course. How about large companies: are they making good use of the data available? In our estimation, going from digital resister to digital disruptor, 55% of European companies are still exploring. Organizations get stuck because of the silos of innovation: They start innovating only in one part of the company while, to exploit data, you need to have an integrated digital process. They don’t measure the right things; they don’t measure their assets. One prediction we make is that within

Mini C.V.

Gabriella Cattaneo is the director of the Expertise Center on Competitiveness and Innovation Policies and Strategies of International Data Corporation (IDC) and IDC Health Insights EMEA. The Expertise Center, which focuses on the competitiveness and innovation impacts of ICT, provides socio-economic research and consulting services to policy makers and industry leaders engaged in the development of the information society in Europe and the world. Cattaneo leads the consulting unit of the European Parliament which leverages IDC global research for policy clients, specifically the European Commission and the Horizon 2020 program. On behalf of the Commission, it has measured

two-three years, most companies will change their effectiveness KPIs and will include data in them. Now companies are starting to work with data but few have data exploitation as a key measure for business success. Limited expertise is another huge problem but it is not the lack of pure data scientists - we don’t have enough of them but you need only a small number of them. What is needed are data professionals, who understand business and can combine this expertise with data potential. This is an area where companies need to invest. Are there regional differences in the use of data? Where is Hungary placed? Data technologies are sophisticated technologies. They can be used in companies with a good level of digitalization. They also have very strong network and scale effects. So big countries with no language problems and big companies have an advantage - in this market size matters. It is not the only factor but it helps to scale up. For a smaller country like Hungary, for the data industry and data users both, the best option would be the Digital Single Market. Working on the European market would definitely help consolidate the industry and help the users to use their innovation better. It is also true that, at the moment, smaller markets are growing faster. In Hungary, the current size of the market is an estimated EUR 435 million; it should go over EUR 500 million by 2020. The growth rate in Hungary is roughly one percent higher than the EU-27 average (Great Britain excluded). What do you think this difference is due to? We consider a number of factors including GDP dynamics, the IT market, we look at the profile of companies, we estimate data users and suppliers separately, we look at their projections of IT spending - so it is a combination of factors. It may not have started as fast - due to the structure of companies, etc. I understand that the Digital Success Strategy is related to it. It is a natural evolution, we project it will continue to grow a bit faster - we expect it also because Hungary has a number of digital startups. Hungary has a number of successful IT startups. Does this help? Yes, but it is not enough. This is a business which involves a transformation to design and sell new services and products. Talent is a good point but it is not enough.

the European data economy/ market. Based on its findings, it produces a detailed report that covers the 28 EU member states and 11 industries. The latest report was submitted to the European Commission last Friday. Cattaneo presented draft data in Budapest, at a conference of the Hungarian ICT Association. International Data Corporation describes itself as the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in more than 110 countries.

www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

Business | 13

Hungarian Solar Paving set to Disrupt Charging Systems Platio’s solar energy solution provides an aesthetic and space-saving way to generate green power. Its debut at the Prologis logistics park marks just the first chapter in what promises to be an unfolding success story. LEVENTE HÖRÖMPÖLI-TÓTH

Green e-charging has a brand-new ambassador in Hungary. Platio has entered the market with its disruptive solution that integrates high-performance solar cells into sidewalk paving elements made of recycled plastic. The pilot project is up

and running at a site belonging to Prologis, Inc., a global leader in logistics real estate, where the renewable energy system supplies an electric car charging station with power generated from sunlight. As marketing officer Dávid Csende tells the Budapest Business Journal, Platio is regarded as an open platform, which may serve as a launch pad for many newer products. Every potential solution is based on a modular recycled plastic structure. That is what makes the installation of complex power systems simple. “This key feature should be of value for new development companies that are working on fulfilling the charging needs he says. “We implement several green of e-cars and are seeking new inventions solutions in our logistics real estate to modernize charging systems,” Csende facilities, from energy-efficient lighting to says. “We are on the lookout for a partner recycled building materials, and we submit firm with which we could further develop all of our new buildings for BREEAM the wireless charging systems integrated accreditation.” in Platio’s platform, thus contributing to Opportunities Abound the proliferation of electric driving.” Expectations run high in terms of the The initial testing ground is Prologis cooperation with Platio, since the project Park Budapest-Harbor, which has become should trigger more similar efforts. the first logistics park in the world to “We hope that this pilot will inspire integrate such a green solution into its daily more users to try green technology and operations. László Kemenes, senior vice generate further innovations in this president and country manager of Prologis Hungary, explains his company’s decision by field, which would be beneficial for everyone,” Kemenes notes. referring to the fact that applying pioneering Platio is not short of long-term plans, innovations in the field of green energy is either. The upcoming two years will be one of the top priorities of the company. dedicated to sales. First, it intends to reach “Sustainability is embedded in our out to enterprises manufacturing and strategy, our operations and our mindset,” ADVERTISEMENT

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Special Effects Announces Zsolt Kassai as General Manager Event production company Special Effects International has appointed a new general manager. After 15 years of leadership, majority owner Péter Müller has handed over to Zsolt Kassai, former director of sales and marketing. This change involved two other assignments: Judit Kalmár is now director of event sales, while Tamás Szegő will continue as director of conference sales. “Structural changes and dynamic growth at the company have become so intense recently that overseeing company leadership and developing the business at the same time weren’t as efficient as was necessary anymore,” said Müller, who now calls himself director of possibilities. “This is one of the reasons I decided to hand over my duties as general manager to my excellent colleague and dear friend, Zsolt, whom I utterly trust. Last year we had the opportunity to recruit outstanding employees so now I can finally get back to my original tasks and do what I have passion for the most: business development, networking and sales. Of course, I stay on board and continue to support Zsolt and the team,” Müller added. Kassai, who has been at the company for eight years, said he was surprised by the decision. “I was part of the fantastic journey we have accomplished in the

past few years. I feel honored to face new challenges in this position and I trust we can continue our work with the same success. All our achievements are common and, just like Péter, I very much believe in teamwork and team spirit so all credit goes to the people of the company, too,” he added.

Skanska Commercial Development Europe Welcomes SVP Real estate developer Skanska Commercial Development Europe has appointed Stuart Beety as senior vice president of its business development department. He also joins the management team of the commercial development unit of Skanska for Central and Eastern Europe. Beety has 20 years of experience on the real estate and financial markets. Prior to his new position, he was a member of the management team at Credit Suisse, in charge of real estate strategy and portfolio management. Before that, he worked at Morgan Stanley in New York and London. Beety will coordinate business development and market development in Czech Republic, Hungary, Poland and Romania. He will strengthen international tenant commitments and long-term partnerships with clients from Western markets searching for office space in Central and Eastern Europe.

maintaining outdoor electric devices so that wireless operations can be set up for street lamps and billboards by building solar paving elements around them. “Another niche market is architects and construction companies for whom it is of key importance to find a common denominator for renewable energies and design,” Csende says. Street furniture manufacturers are also on the radar, since the Platio solar cell module is suitable for outdoor furniture as well. The retail market offers even more opportunities, with ever more private customers willing to opt for aesthetic solutions as opposed to conventional solar systems installed on rooftops. “Our product is also easier to clean and maintain,” Csende notes. Platio has seen one funding round so far, with a next bigger one to come soon. Last year’s R&D operations were financed from grants and the sale of pilot projects. “Seven of us are working on development, scaling up manufacturing capacity is under way. We are counting on permanent growth on both fronts,” concludes Csende optimistically. S TA R T U P S P O T L I G H T

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Budapest Business Journal | February 9 – February 22, 2018

Special Report Office Equipment

Office Fit-out Evolving to Meet Demands of Gen Y



Office Design to Keep Employees Happy



Making Offices Better, Healthier and More Productive 

Hardware and supplier listings  19-20

How the demands of Gen Y are shaping office fit-out trends, how the market is coping with consolidation, and how to make your office healthier.

www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

Special Report | 15

Office Equipment Market Talk: Consolidation Brings Focus on Service Provision due to the consequential decrease of players. On the other hand, it expects a substantial impact on the market of small laser printers, where Samsung had had traditionally strong positions. HP will also need to gear up to fulfill more complex customer needs as a result.

Focus on R&D

Ricoh Hungary says it has taken note of the deal, but would rather focus on its own matters, most importantly its R&D activities, to handle the new market situation. On the other hand, when asked about what role services play in generating revenue, Ferenc Kustos, director of trade and marketing says that there is a long way to go to reach Western European ratios.

Ferenc Kustos, Ricoh Hungary.

LEVENTE HÖRÖMPÖLI-TÓTH

Although the news first broke back in 2016 that HP would buy out Samsung Electronics’ printer business, the deal itself was finally approved only in

late

2017.

With the grace period over, market players now need to face all the consequences of the acquisition. As a press statement sent by HP Magyarország to the Budapest Business Journal explains, HP’s solid sales network and customer management

Trending now in Office Equipment Several novelties are out there to attract corporate customer attention in the office equipment arena. Canon’s total portfolio has been fully updated after the addition of new security functions and the introduction of cloud compatibility. More importantly, it says its projectors offer more than ever thanks to

scheme in printing is thereby complemented by the technology expertise of Samsung in the field of copying. The deal, therefore, catapults HP into a comfortable position in the copying segment as well. The USD 1.05 billion purchase can also be interpreted as part of a larger-scale strategy, since HP’s declared goal is to do the same in office equipment as Tesla did in auto manufacturing. Accordingly, the main focus is dedicated to the development and implementation of printing management software as well as cybersecurity solutions. The acquisition was evaluated as market cleansing by Canon Hungária

lighter and smaller structures. The wireless range to transmit signals to projectors from mobile devices has also been increased, while the latest models offer an unprecedented 20,000 hours without maintenance. Ricoh, in turn, is betting on a solution where multifunctional printers are accompanied by Android tablets. This allows customers to download and use the most recent apps available at all times, making sure that workflow management is always driven by the most cutting-edge tech. Ricoh also has a solution by which up to five pages can be pressed together without using staples. HP, on the other hand, says it aims to shake up the A3 market. It says its so-called “Pagewide” tech makes the efficiency difference between black-and-white and color printing history.

“We are not talking about operation and maintenance services here, but rather a wide range of others such as document management systems, auxiliary software or outsourcing different activities. Demand for such services in Hungary does exist; however, it takes out-of-the-box thinking to actually make it part of everyday operations.” “We are not talking about operation and maintenance services here, but rather a wide range of others such as document management systems, auxiliary software or outsourcing different activities,” he says. “Demand for such services in Hungary does exist; however, it takes out-of-thebox thinking to actually make it part of everyday operations.” Kustos mentions the example of the company’s cooperation with AXA Bank in Belgium, where all inbound and outbound documents travel through a Ricoh workflow system. Hungarian customers seem to be a long way off from thinking that big. Canon Hungária confirms that printing-related services carve out an increasingly large portion of its revenue pie. “In the world of digital transformation, there is ever more demand for safe, fast and precise digitalization, archiving and process management,” it tells the BBJ. But what about customer preferences in terms of purchase or renting? In the experience of Canon Hungária, renting office equipment is widely popular, irrespective of company size. Using second-hand equipment is typical for small enterprises that have limited financial means and are just about to undergo digital transformation. As a manufacturer, Canon

Hungarian SMEs’ Printing Habits According to a 2017 Canon Hungária survey, local SMEs don’t tend to keep track of how much is printed on their premises. The bigger the size of the company, the more conscious the practice becomes. However, only onethird of those companies that do keep count of the number of printed pages make it obligatory for staff to identify themselves with access cards when using a printer. As far as volume is concerned, around half of those polled reported they had used the same amount of paper for printing as in previous years; 17% said they print more, while 28% said they print less. A great majority of companies, namely 86%, try to cut paper use for printing purposes. Some 70% of them do so by replacing printing with scanning. Around the same portion of polled firms use the reverse page of sheets that already have something printed on one side. The survey also revealed that almost 60% of respondents don’t use any document management system, which could be a large niche market for the future.

says it doesn’t have enough information to evaluate the used devices segment, though, as its focus remains on selling and renting out new machines. By contrast, Ricoh Hungary is very much familiar with the used segment. In fact, it deals with large volumes of used office equipment that tend to stem from its operations in Austria. Following a full renewal, such devices land on the market in Hungary for

around

30-40%

of the purchase price of new ones. “It works pretty much like the used car market. Many players import items from Western Europe, often with questionable product history, though. We at Ricoh make sure that we only deal with products that have not surpassed 30% of their life span,” Kustos says.

16 | 3

Special Report

www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

Office Fit-out Evolving to Meet Demands of Gen Y The Hungarian office market, like so much else in Hungary, is largely centered on – and dominated by – Budapest. The population of the capital appears to be on the rise, and demand for trendy office space is also going up as the real estate sector bounces back from the crisis. Yet, what trendy means is highly dependent on the sector and the average age of the staff working in the spaces, experts tell the Budapest Business Journal. CHRISTIAN KESZTHELYI

Although there are a few secondary cities in Hungary large enough to home largerscale office buildings, the capital still rules the market. Shared service centers (SSCs) seem to favor university cities around the country, but other than that, Budapest prospers from the myriad of office buildings forming its skyline. “The Budapest office market is quite diverse; everything can be found from the smallest offices, to several thousand square meter large office buildings,” Borbála Csuhay, sales and asset management director of Property Market Real Estate Development Ltd., says. Csuhay points out that the capital is home to a total of more than

Extreme Differences

“The interior demands of an SSC or a legal firm - the two extremes from a fitout perspective - are still very different nowadays,” Csikós says, explaining that establishing a dominant trend in terms of office fit-out is all but impossible. “While SSC’s prefer open spaces, legal firms need much more separated interiors. Before the crisis, the ratio of open versus cellular space was around

80% open

and 20% cellular. And although open spaces have become more popular lately, these kind of offices also combine closed and open spaces,” she adds. Despite the differences of the sectors, however, there are some facilities that no office space can operate without. “Open space, manager rooms, collaboration rooms, kitchens, water blocks, etc. are now a necessary must,” Csuhay says. And Csikós also points out it is a given that “the office is at a convenient location, with easy access for public transport - that is important for most employees.” It is nearly impossible to start any conversation in the modern labor market without seasoned professionals and senior managers mentioning how the younger million generation is transforming the working life square meters of modern office space. Sarolta in many aspects. Youngsters even appear Csikós, regional leasing director for offices at to be altering how developers must think TriGranit, tells the BBJ that, considering the about fitting out an office. whole Hungarian office market, the average “Due to the needs of the young generation, rented office space is at around 700 sqm. She who have just started work, interior fitstresses that while smaller office spaces are out needs have changed a lot in the recent regularly available only in category “B” or “C” years,” Csikós notes. “Creative interior design, offices, international companies tend to rent recreational functions, many more green areas larger, higher grade spaces. have made offices much more sophisticated It is clear that acquiring BREEAM, and also more expensive,” Csikós comments. LEED or WELL certification is a good She adds that the efforts required to secure idea in terms of making an office building certifications, such as BREEAM, LEED or attractive. However, what white-collar WELL, can also pump up construction costs. workers will expect from an office space Csikós also notes that “as for general depends highly on the sector they work in. refurbishment, or even services, the trend

3.3

is still to have nice common areas, a wide range of recreational facilities, and creative interior design (these two are especially important for the Y-generation. Bicycle storage, electric car chargers and full accessibility are similarly important for tenants. Creative spaces are gaining a larger role - for example, comfortable couches are available for meetings, and for separate working smaller creative working corners are prepared.”

Green Still King

Environmental protection and sustainability are still buzzwords, as far as offices are concerned, and such a mentality also extends to fit out. “More and more companies consider environmental protection an important thing, therefore they’re using recycled furniture, or they’re choosing to separate the boxes/cells in the open offices with plants, instead of furniture,” Csuhay says. Riding this environmental train of thought is not only a perk, however; it is becoming a requirement. “Actually, due to an EU regulation, buildings receiving occupation permits after the end of

2020 will

be subject to much stricter technical regulations, and as an effect, buildings will need to reach zero emissions,” says Csikós. “But sustainability is not only more and more important for employees. International companies are often restricted to leasing office spaces that are certified green offices; the corporate sustainability responsibility agenda adopted by most international corporations simply obliges them this way,” she adds. But what can make an office space truly trendy nowadays? “According to our experiences, colorful and comfy sofas, bean bags, and lounge/relaxation rooms are essential in a trendy office,” Csuhay says. “Many offices use design elements, such as

art by Hungarian designers, painters, or sculptors as a tool for making a prettier environment,” she adds. Additionally, the emphasis on letting the steam out and enabling office staff to relax has also grown. “Recently, many companies have purchased accessories like darts, boxing bags, table football, pool tables, etc., which can reduce stress and help staff to relax,” Csuhay adds. She also notes that the need for privacy has also been recently addressed. “There is a dominant trend, the so-called phone room or phone booth, where the employees can have telephone conferences, or simple phone calls with a client or even private calls without disturbing the others.” When fitting out an office space, the satisfaction of employees has moved to the center of attention partly because recent scientific studies have shown that the atmosphere can boost this very important variable as far as working sentiment is concerned. “Employee satisfaction is strongly dependent on the atmosphere of the workplace, which in turn contributes to the good mood of the employees and helps to increase loyalty and attract talents,” Csuhay adds. Hence, following Western European trends, Hungary has seen an increasing demand “for office buildings that can offer more than just basic and standard technical parameters, such as recreational facilities and services that make the everyday life easier for the employees.” The evergreen cliché of creativity having no limits also applies to fit-out. Csikós mentions “a sauna just right beneath the CEO’s office” as the weirdest thing she has come across in an office fit-out, while Csuhay recalls “an ice cream wagon with a cafe section,” a “a snow-white tram” that can be used for relaxation or a meeting room, as well as a “huge blue slide coming down to the middle of the office from the upper floor relaxation area”. Who would not want to work extra hours in such offices?

www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

Special Report | 17

Using Design to Keep Employees Happy

ÁGNES VINKOVITS

A few years ago, it was mainly only the IT sector that realized the benefits of a designer office, but nowadays companies from many sectors are ready to invest in creative and tailor-made workspaces. The deepening labor shortage has definitely placed a higher value on office conditions, too, as research shows that work environment is the third most important factor behind salary and career. “No matter how cool a company wants

Photo: LAB5, Zsolt Batár

While the expression “designer office” is often used only in relation to Google-like IT giants, creating an outstandingly good work environment is becoming a tool for employer branding at companies in Hungary too.

this way, HR departments do not have to organize silly team-building events, but the community is naturally born due to the well-arranged space,” Nagy notes. Employers also have to accept that there are some personal things that people have to arrange during working hours, Nagy points out. “When someone sits surrounded by colleagues all day, from where should they call the baby sitter, arrange an appointment at the doctor or ask the car mechanic about the costs?” Such everyday human situations have to be catered for in the office design. Small corners where personal phone calls can be made as well as community spaces are equally crucial to make a workplace livable. For the best results, designers should be involved in the project as soon as possible. “In the best case, we take part in choosing the office,” Erdélyi says. As offices are usually rented for a minimum of about HQ, agrees: “It is not that I place a swing five years, thoughtful planning is crucial. next to the desks and so the whole thing “The concept has to work even if you add is cool and fancy.” She says that building or take away something. You have to be “Google-like playgrounds” is just one type creative by adding a type of ‘buffer zone’,” of office design, which always has to reflect Erdélyi says pointing out that the number to the habits of those who will work there. of employees at an office can change “Creative agencies with people physically significantly in the medium-term, while moving around a lot have understandably businesses understandably do not want to different needs than accountants who spend spend too much on the rental fee of unused most of the day at their desks,” she points out. office space. “There are world-class designers in No Boring Spaces Hungary and there is also a network of equally Out-of-the-box office arrangements can great manufacturers behind them,” says Nagy. create a room for keeping employees From carpet makers and carpenters to the satisfied. “For example, I enjoy playing famous concrete design brand IVANKA, around with conference rooms and the products of local creatives appear in showing that these are not necessarily fully many Hungarian offices. “Supporting separated and boring spaces,” Erdélyi says. Hungarian artists and manufacturers is an Ideally, community spaces have to be awesome thing to do and can also become integral parts of the office space too. “In part of a company’s image.”

to look, if it forces its employees to work like little mice in a small grey box, young and qualified people will leave very soon,” Ferenc B. Nagy, managing director of real estate consulting firm Stay In Hungary tells the Budapest Business Journal, adding that investing in a good office space costs much less in the long-run than coping with workforce fluctuation. However, in Hungary office design is still often little more than a dog and pony show, he says. “Many times, there is no real concept or purpose behind [the design], just the superficial idea of being cool,” he says. “To serve HR purposes successfully, there has to be so much more. It really has to put the employee into focus.” Linda Erdélyi of LAB5 architects, who is also one of the creatives behind Skanska’s internationally-acknowledged Budapest

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18 | 3

Special Report

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Budapest Business Journal | February 9 – February 22, 2018

Making Offices Better, Healthier and More Productive Take a look around your office. Is it simply where you have to work or is it a space you actually enjoy being in? DAVID HOLZER

Far too many offices are uncomfortable, unhealthy places that do nothing to enhance our productivity or creativity. This is one of the reasons why the number of freelancers, or members of the “gig economy” is growing around the world. In Europe, according to a report by The Organization for Economic Cooperation and Development (OECD),

16.1% of

the workforce is freelance. Not working in an office, choosing the hours we work - even if we end up working longer - represents freedom and empowerment. But, unless something dramatic happens to the nature of work, organizations will always need offices or workplaces. In 2017, multinational tech company IBM reversed a trend it had pioneered and began calling people back to the office. Today, many IBM employees work in “agile offices” where clumps of desks are clustered in large, open spaces. Michelle Peluso, IBM’s chief marketing officer, believes that working in this way enhances “speed, agility, creativity and true learning experiences within your team”.

According to the World Green Building Council, employees account

‘Radical Workers’

1) Move More

Creating workspaces that are more conducive to productivity, creativity and knowledge-sharing is not just being seen as a remedy for organizations that face challenges. As companies shift production to countries with lower hourly rates, and technology digitizes work at a ferocious pace, fewer people are being hired. But they are being employed for the qualities they possess that machines can’t replicate. Exceptionally creative, empathetic and open-minded, they’re highly sought after, and they know it. Increasingly, organizations are having to work harder to attract these so-called “radical workers”, who are likely to work in offices or some form of workspace. One of the ways to appeal to “radical workers” is to offer a working environment that is outstandingly appealing and enables them to thrive. This is, of course, the logic behind everything we see in Silicon Valley - from free cafes bursting with healthy, organic brain food to Chief Happiness Officers. And it’s not just the most in demand employees who need to be treated well.

for

90%

of most companies’ costs. But, although it makes sense to invest in the wellbeing of your biggest asset, just 9% goes into workspaces.

Five Easy Ways to Make Your Office Better on a Budget

If you don’t have the deep pockets of a Google or IBM, chill. There are plenty of ways you can transform your office into a healthy, productive, creative and happy working ecosystem. You may well have heard the phrase “Sitting is the new smoking”. Sensationalist, sure, but we do spend far too much time slumped in our chairs staring at our computers. Encourage employees to walk over to each other’s desks rather than send an email. Invite them to get up and walk around for five to ten minutes every hour. Hold walking meetings whenever you can.

2) Eat and Drink Well

We have got it into our heads that a caffeine or sugar rush concentrates the mind. Simply not true. Buzzing on coffee or donuts makes people less productive. Replace them with teas and herbal infusions, cucumber or lemon water, fruit and nuts. Now!

3) Respect Natural Rhythms

Some of us are wide awake and productive first thing in the morning, rubbing our hands with joy at the start of another day. Others of us come alive in the afternoon and have no problem working until midnight. This is down to our own personal natural rhythm. There is not much we can do about it.

If it’s doable for your business, offer flexi time. Also, think about the lighting in your office. Use natural light wherever possible. Try changing from a yellowy light to one which is bluer.

4) Plant Power

Research suggests that plants could have the power to help prevent and remedy everything from asthma to heart disease and physiological stress. They can also actively enhance concentration and selfdiscipline. A study involving 3,600 workers in eight countries showed that employees who worked in an environment with natural elements had a 13% higher level of well-being and were 8% more productive. The funny thing is that employees can feel the power of nature even from fake plants, posters or wall murals. Make sure that every workspace in your office has a view of a real or fake plant, or an image of greenery. Use tranquility-inducing images of trees and forests.

5) Mindfulness

Countless studies show that mindfulness works. The reason is that it is all about calming the mind by getting rid of anxiety. But you don’t want to encourage people to be so spaced out that they find it impossible to focus on meeting that deadline. The simplest way to be mindful is to close your eyes and concentrate on your breath. Count every time you breathe in and out. Aim for four breaths a minute or lower. Regularize your in and out breaths so that they’re the same length. Breath into your lower diaphragm, letting it relax, your middle diaphragm and then your chest. Just a couple of minutes of focusing on your breathing will make you calmer. Introducing any one of these five into your office ecosystem will make a difference without costing a fortune. And, as more and more organizations have discovered, it will have a positive impact on your bottom line. Can you afford not to make your office better?

The Healthy Office Revolution BBJ contributor David Holzer is the co-author of “The Healthy Office Revolution” with scientific researcher Elizabeth Nelson. A blend of compelling story, scientific research, blueprint for the future and manifesto, the book is receiving glowing reviews. Rohit Bhargava, trend curator, storyteller, marketing expert and the author of the bestselling “Non-Obvious” books says: “At its heart, this is a story about our sometimes-broken relationship with work and how practicing mindfulness might be the ultimate solution to find balance.” Buy your copy at Amazon or download a free sample at thehealthyofficerevolution.com.

www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

Special Report | 19

Digital hardware producers Ranked by total net revenue in 2016

total net Revenue in 2016 (HuF mln)

samsung eleCtRoniCs magyaR ZRt.

pCe paRagon solutions kFt.

lg eleCtRoniCs magyaR kFt.

www.samsung.com

www.foxconn.hu

www.lg.hu

HuaWei teCHnologies HungaRy HíRadásteCHnikai kFt.

609,915

303,556

–

✓

–

✓

–

yeaR establisHed

oWneRsHip (%) HungaRian non-HungaRian

top loCal exeCutive CFo maRketing diReCtoR

addRess pHone Fax email

1989

– Samsung Electronics Corporation Ltd. (100)

Hwanseog Choi Kim Ki-sup –

1138 Budapest, Dunavirág utca 2. (1) 453-1100 (1) 453-1103 –

2007

– FOXTEQ Integration Holding (100)

péter tálos Gabriella Pistauer –

2900 Komárom, Bánki Donát utca 1. (34) 886-069 (34) 886-173 komarom@emea.foxconn.com

Hwang dae minbum seop lee – –

1097 Budapest, Könyves Kálmán körút 3/A (1) 455-6060 (1) 455-6066 –

seRveR

tablet

bRands RepResented laptop

Company Website

Rank

pRoduCed ComputeR types

✓

Samsung

85,073

–

✓

–

1992

– LG Electronics Europe Holding B.V. (100)

52,039

–

✓

–

Huawei

2005

– Huawei Cooperatief U. A. (100)

Zheng Weifeng, shi yanli, li Jian, tang xiaoming – –

1138Budapest, Népfürdő utca 22/A (1) 555-2300 (1) 555-8989 hungary@huawei.com

www.huawei.com

ibm data stoRage systems kFt.

31,974

–

✓

IBM

2006

– IBM Ireland Product Distribution Ltd. (100)

péter mohácsi – –

2600Vác, Deákvári fasor 16–18. (27) 500-400 (27) 517-026 janos.andrasi@hu.ibm.com

HeWlett-paCkaRd inFoRmatikai kFt.

27,653 (2015)

✓

2008

– Gatriam Holding B.V. (100)

bálint bartl, gábor gonda – –

1117 Budapest, Alíz utca 1. (1) 229-9999 (1) 229-9000 info@hp.com

oRaCle HungaRy kFt.

21,528

–

✓

Oracle

1993

– Oracle Nederland B.V. (100)

titusz Csaba puskár – –

1095 Budapest, Lechner Ödön fasor 7. (1) 224-1700 (1) 214-0070 –

1936

– IBM Ireland Product Distribution Limited (99.93), IBM World Trade Corp. (0.07)

péter szalay Árpád Koncz Svetlana Stavreva

1117 Budapest, Neumann János utca 1. (1) 382-5500 (1) 382-5501 info@hu.ibm.com

www.ibm.com/hu

www.hp.com

www.oracle.com

ibm magyaRoRsZági kFt.

16,826

–

✓

Pure Systems, Power Systems (AIX, IBM i, Linux), z Systems (Mainframe), Storage Systems, Flash System, Tape Systems, Storage Area Networks

FuJitsu teCHnology solutions kFt.

3,448

✓

Fujitsu

1999

– Fujitsu Technology Solutions (Holding) B. V. (100)

krisztina batári Krisztina Batári –

1143 Budapest, Gizella út 51–57. (1) 471-2111 (1) 471-2110 info@fujitsu.hu

dell magyaRoRsZág Műszaki Megoldások kft.

882

✓

Dell

2007

– Dell Global Holdings II B.V. (100)

tivadar dienes-oehm – –

1062 Budapest, Váci út 1–3. (1) 888-0550 (1) 800-0501 attila_marosvari@dell.com

asus magyaRoRsZág kFt.

326

✓

Asus

2007

– ASUS Technology Holland B.V. (100)

Zoltán gyöngyösi – –

1075 Budapest, Wesselényi utca 16. (1) 505-4561 (1) 505-4563 backoffice_hu@asus.com

✓

Acer

2016

– ACER Sales International S.A. (100)

tamás József borhi – –

1023 Budapest, Árpád fejedelem útja 26–28. (1) 336-3300 (1) 336-3309 info.hu@acer.com

2005

– Lenovo Technology B.V. (100)

anita lukács – –

1037 Budapest, Montevideo utca 16/A (1) 211-1402 – info@lenovo.hu

1994

– Panasonic Marketing Europe GmbH (100)

takashi Furumoto – –

1117 Budapest, Neumann János utca 1. (1) 382-6060 (1) 382-6080 reception.psee@ eu.panasonic.com

2010

– Sony Europe Limited (100)

Fujioka yoshiyuki – –

1138 Budapest, Váci út 144-150. (1) 777-9151 (1) 346-8225 Yoshiyuki.Fujioka@sony.com

www.ibm.com/hu

www.fujitsu.com

www.dell.hu

www.asus.hu

aCeR sales inteRnational s.a. magyaRoRsZági keReskedelmi képviselete www.acer.hu

lenovo teCHnology b.v. magyaRoRsZági Fióktelepe

✓

Lenovo

www.lenovo.com/hu/hu

panasoniC maRketing euRope gmbH soutH-east euRope Fióktelepe

–

✓

–

Panasonic

www.panasonic.hu

sony euRope limited magyaRoRsZági Fióktelepe www.sony.hu

–

✓

–

Sony

20 | 3

Special Report

www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

Office equipment manufacturers' branch offices

Canon HungaRia kFt.

9,962 (2016)

www.canon.hu

koniCa minolta magyaRoRszág Üzleti megoldások kFt.

8,120

✓

–

✓

–

✓

–

✓

–

✓

–

Konica Minolta, Develop, KIP

7,580

Hp inC magyaRoRszág kFt.

7,499 (2016)

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

RiCoH HungaRy kFt.

3,217(1)

✓

global union kFt.

www.xerox.hu

www8.hp.com/hu/hu

www.ricoh.hu

www.globalunion.hu

kvint-R kFt. www.kvint-r.hu

bRotHeR CentRal&easteRn euRope gmbH NR magyaRoRszági keReskedelmi képviselete

1,800

✓

–

✓

–

✓

–

✓

–

✓

–

✓

–

Xerox

✓

–

Ricoh

✓

Softwareassisted document management solutions

✓

743

✓

–

✓

–

✓

–

✓

Professional 3D, matrix and label printers, accessories

3D Systems, Brother, UTAX, Lexmark, Ricoh, HP, Tally Dascom, Printronix, Microplex

✓

–

✓

–

✓

Portable printers and scanners, labelling equipment

Brother

–

✓

aCCessoRies

Home deliveRy

Consulting

Rental

otHeR –

Canon, Therefore, Iris, UniFlow, Irista, Lifecake, hdbook

www.konicaminolta.hu

xeRox magyaRoRszág kFt.

RepaiR

bRands CaRRied

paRts supply

seRviCes

sCanneRs

visual teCHnology

multiFunCtional maCHines

sHReddeRs

Fax maCHines

digital CopieRs

optiCal image CopieRs

laseR pRinteRs

Company Website

pRoduCts

–

✓

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

✓

yeaR establisHed no. oF Full-time employees on januaRy 1, 2018

total net Revenue in 2017 (HuF mln)

Rank

Ranked by total net revenue in 2017

oWneRsHip (%) HungaRian non-HungaRian

top loCal exeCutive CFo maRketing diReCtoR

addRess pHone Fax email

1994 140

– Canon Europa N.V. (100)

jaap van t'ooster Orsolya Földi Csaba Kátai

1037 Budapest, Záhony utca 7. (1) 237-5900 (1) 237-5901 info@canon.hu

1990 153

– Konica Minolta Business Solutions Europe GmbH (100)

dániel székely Péter Apjok Attila Kószás

1117 Budapest, Galvani utca 4. (1) 464-9000 (1) 464-9069 ugyfel@ konicaminolta.hu

1992 168

– XEROX Ltd. (100)

veronika brazdilova Emőke Vass Ádám Katona

1138 Budapest, Madarász Viktor utca 47-49. (1) 436-8800 (1) 436-8801 info@xerox.hu

2014

– Alpha Holding Two B.V. (100)

kristóf takáts Zoltán Szalai –

1117 Budapest, Alíz utca 1. (1) 485-6580 (1) 885-3302 –

majoR Clients in 2017

✓

Audi Hungária Zrt., BRVZ Kft., Michelin Hungária Kft..

1990 72

– Ricoh Europe Holdings Plc. (100)

michael Raberger Péter Eperjesi Ferenc Kustos

2040 Budaörs, Puskás Tivadar út 14. (23) 806-800 (23) 806-801 info@ricoh.hu

✓

KnorrBremse, TV2, Libri

1992 21

László Juhász (90), Anikó Szabó Juhászné (10) –

lászló juhász – Dorottya Juhász

1172 Budapest, Rétifarkas utca 16. (1) 273-0100 (1) 273-0060 info@globalunion.hu

✓

1991 25

Individuals (100) –

zoltán schneider – –

1089 Budapest, Delej utca 41. (1) 477-4050 (1) 477-4060 posta@kvint-r.hu

1994 9

– Brother Holding (Europe) Ltd (100)

toru osawa – –

1117 Budapest, Budafoki út 209. (1) 382-7450 (1) 382-7455 sales@brother.hu

– Epson B.V. (100)

Hideki kitamura, lena saw seang giak, michelle elizabeth mecklenburgh – –

1117 Budapest, Infopark sétány 1. (1) 382-7680 (1) 382-7689 info@epson.hu 1016 Budapest, Aladár utca 4. building B (1) 814-8000 – askoki@okihu.hu 1117 Budapest, Infopark sétány 1. I/6 (1) 815-2500 (1) 815-2501 eniko.laczko@ sharp.eu

✓

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

www.brother.hu

epson euRope b.v. magyaRoRszági NR Fióktelep

✓

–

✓

–

Epson

–

✓

Magyar Posta, OTP Bank, MOL, Richter Gedeon, NAV

1992 4

– OKI Europe Ltd (100)

miroslav tyburec Łukasz Gniewosz Jacek Tarkiewicz

2008 11

– Sharp Electronics (Europe) GmbH (100)

zsolt szabó Maciej Skupinski Adam Bieniewski

www.epson.hu

oki euRope ltd. magyaRoRszági NR Fióktelepe

✓

–

✓

–

✓

–

Accessories

–

Interactive board

OKI

–

✓

–

www.oki.com/hu

sHaRp eleCtRoniCs (euRope) gmbH NR magyaRoRszági Fióktelepe

✓

–

✓

www.sharp.hu

–

✓

Sharp

✓

2008 10

✓

NOtes: (1) Estimated data of business year April 1, 2017-March 31, 2018.

Ÿ= would not disclose, NR = not ranked, NA = not applicable

This list was compiled from responses to questionnaires received by February 7, 2018 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

www.bbj.hu

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Budapest Business Journal | February 9 – February 22, 2018

Boscolo Budapest, the Hungarian National Gallery and a Chance Encounter overwhelming impression is that there was an enormous amount going on within the frames imposed by socialism.

Once a year, on the anniversary of their first date, David Holzer and his partner stay at the Boscolo Budapest, a historic building that is a hodgepodge of styles, slightly over the top, and perfect for romance.

Chance Encounter

New York Café, Boscolo Budapest.

DAVID HOLZER

It’s fair to say that the Boscolo is somewhat over the top when it comes to décor. The website describes the building as “eclectic…. where historical Greek, Latin, Renaissance and baroque styles are blended in a typically Art Nouveau creative structure”. The result is an architectural melange of dizzying richness. Perfect for romance. The building first opened

1894

as the local head office of the New York Life Insurance Company. Known as the New York Palace then, it belongs to a time when insurance companies sought to inspire trust in their customers by appearing to be ultra-grand. I’m not sure how much confidence the interior of the New York Life Insurance company inspired, assuming that it had the same off-kilter Palace of Versailles vibe that it does today. The building was restored by the Boscolo Group between 2001 and 2006 in collaboration with the Hungarian National Center for the Restoration and Reconstruction of Monuments. We love pretty much everything about the Boscolo, but breakfast in the New York Café, opened in 1894 by Hungarian coffee industrialist Sandor Steueur, is probably the best part. The grandiosity of the breakfast perfectly complements the frescoes of Gustav

Mannheimer and Ferenc Eisenhut (not that I know who they are) and the “soft light that reflects off the gold-plated stuccoes of the tortile columns, creating a myriad of colors”.

The New York Café was the gathering place of the cityʼs elite, including the writers and artists of the day. Itʼs part of the history of Hungarian literary life and the building was once the offices of Nyugat magazine. There’s even a pianist. I hoped he wasn’t the same guy who tinkled away in the cocktail bar the night before. The cocktail bar isn’t yet old enough to have acquired a patina of loucheness, but it’s getting there.

Wait in Line

If you’ve ever been to the New York Café for afternoon coffee and cake, you’ll know that there’s usually a queue to get in. Tables are mostly occupied by selfieobsessed tourists. While I don’t especially mind this mania for photographing oneself and one’s cake, rather than actually committing an experience to memory, I do wish that the Boscolo would issue guests with period costume.

The New York Café was the gathering place of the city’s elite, including the writers and artists of the day. It’s part of the history of Hungarian literary life and the building was once the offices of Nyugat magazine. I, for one, would be happy to exchange my hoodie, baseball cap and running shoes for an elegant three-piece suit, florid bowtie and pince-nez glasses. And perhaps a cape.

Within Frames

Whoever chose the image to promote the terrific “Within Frames” at the Hungarian National Gallery, an exhibition of mainly Hungarian art made between 1956 and ‘68 must have had a tough job. “Street in Budapest 1951” by Macsai Istvan is just one of hundreds of artworks from the gallery’s vaults being shown for the first time. But it’s not particularly representative of what’s on display. Its naturalistic drabness made the thought of visiting the exhibition feel like much more of a cultural chore than it was. Alongside it are a works in a dazzling aray of styles. My favourite was “St. Tropez 1968”, a “supernaturalistic” painting by Tiber Csernus which pulses with movement and is light years away from some of the heavier, more obviously Hungarian pieces. The exhibition also includes a small selection of furniture, fabric designs, graphic art and covers for jazz albums by János Gonda’s Qualiton Jazz Ensemble. Any form of government censorship of art is obviously a bad thing but my

After “Within Frames”, we wandered through “Continuing Memories”, the exhibition of work by the great Romanianborn photographer Péter Korniss. This was an absolute revelation to me. Once again, the image chosen to promote the exhibition really didn’t tell the whole story. This time, that was no bad thing. After we had toured the Korniss exhibition from end to end, we took the weight off our aching feet in the gallery café. As we were finishing, my partner noticed an elderly gentleman explaining to a waitress that his table had been commandeered by a pair of tourists. The waitress was getting flustered and the gentleman was looking for somewhere else to sit in the crowded café. My partner invited him to sit at our table. When he did so, we realized he was none other than Péter Korniss himself. The artist, whose English was impeccable, turned out to be absolutely charming. He was delighted when I told him that, not knowing who he was, I’d assumed he was a much younger photographer because the image chosen to promote the exhibition felt so contemporary. Korniss is 81. But, like so many artists, Korniss still feels he has something to prove. He told us that when the exhibition opened in October it was practically empty for the first week and he was convinced it was going to be a failure. According to the gallery, the exhibition has so far attracted

35,000 visitors.

Pretty impressive. In one of the films being shown as part of the exhibition, Korniss mentioned that his father was a manager at the New York Hotel. “Oh,” I said, “we stayed at the Boscolo. That was the old name for it, right?” “No,” Peter said, “that was the New York hotel in….” He went on to name a city in Hungary or Transylvania. “But,” and he smiled, “I did work for one of the magazines published by Nyugat and I got my start using their darkroom.”

Find out more about Boscolo Budapest at www.budapest. boscolohotels.com. “Within Frames” runs until February 18. “Continuing Memory” closes on February 11.

22 | 4

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www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

Furmint February Frenzy Continues, but Spare a Thought for Other Grapes The annual Grand Tasting of ʼFurmint Februaryʼ once again rocked the Magyar Mezőgazdasági Múzeum (Hungarian Agricultural Museum) to the rafters, for the most part with Furmints towards the dry end of the scale. However, quite a number did have a few grams of residual sugar to counterbalance the grapeʼs naturally high acidity and the resulting palate still comes out as pretty dry. ROBERT SMYTH

As the Grand Tasting showed, dry Furmint is becoming increasingly consistent and classy with much more measured use of oak applied by the winemakers, and sometimes it is made using no oak at all. However, the dry Furmint category still has a long way to go to match the world-class standard

I was in Champagne visiting lots of smaller producers, there were plenty who challenged that assumption and sought to make more ‘vinous’ Champagne from later harvests.

Out Soon

The Koch sparkling wine actually received no dosage (addition of sugar) during disgorging (the ejection of the yeasty cap has that has been moved to the neck of the bottle), yet it is still a Brut,

Up and down the land, Hungarian winemakers are adding sparkling wine, as are producers across the world, as interest in the style continues to soar.

of the botrytized sweet wine that Furmint produces, particularly as the main grape in the Tokaji Aszú and szamorodni styles. In the meantime, as a growing number of winemakers from across the land get to grips with Furmint’s fiery acidity (a whole row at the Grand Tasting was devoted to cellars from northern Balaton) and smooth down the rough edges of the dry style, this electric acidity is also now being harnessed to make sparkling wines of genuine promise. The production of traditional method sparkling wine, which is made in the same way as Champagne (there and there only can it be officially referred to as Méthode Champenoise) usually calls for base wines of searing acidity, which Furmint has in spades. It is often on the neutral side, aromatically speaking, which is another plus for sparkling winemaking as it allows those biscuit-like, autolytic flavors of the ageing on the lees in the bottle to integrate into the wine and bring complexity to the finished product.

Go-to Sparkler

Kreinbacher from Somló has become the go-to Hungarian sparkler for most, and

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1036 Bp., Kiskorona u. 7. Phone: +36 1 2500288 Ticket: obudaitarsaskor.hu jegymester.hu

CLASSIC + Anima Musicae Chamber Orchestra Kristóf Tóth – violin, Budapest Ragtime Band 2nd March, 7 p.m. BOOGIE-WOOGIE BLUES 3rd March, 7 p.m. CHAMBER MUSIC AT THE TÁRSASKÖR Members of the Budapest Strings 8th March, 7 p.m. BAROQUE PLUS Franz Liszt Chamber Orchestra 28th March, 7.30 p.m. GUITAR MUSIC IN ÓBUDA Sándor Szilvágyi – guitar, Anna Granik – piano 29th March, 7 p.m.

Furmint is the fulcrum of its family of four core traditional method sparklers, with Kreinbacher’s consultant Cristian Forget, winemaker at Champagne Paul Bara, saying that the acidsugar balance provided by Furmint in Somló is quite comparable to that found with the grapes in Champagne. Kreinbacher’s sparkling wines capture a very nice balance between fruit and yeasty autolytic notes. There are other good traditional method sparkling wines made from Furmint, especially from the tiny but top-end Pelle Pince in Mád in the Tokaj region, while Zoltán Demeter and Dereszla also make promising ones in Tokaj. Nevertheless, some still favor the classic Champagne grapes of Chardonnay and Pinot Noir for bubbly, such as Anonym pince from Etyek. Let’s face it, these grapes have one heck of a track record of making top sparkling wine. Another new entry to the traditional method fold is Csaba Koch from the less well-known Hajós-Baja wine region, who also makes some sophisticated reds still further south, down in Villány, that have been scooping various prizes. Interestingly, the grapes for Koch 2016 Chardonnay Brut were harvested at the same time as the grapes for his premium Chardonnay still wine. Usually grapes in Champagne and for most traditional method sparkling wines are harvested quite early when the acids are high and the alcohol is low. However, when

and not a bone dry Brut Nature. This is because the base wine contained some residual sugar after the first fermentation. It spent 18 months in the bottle on its lees for the secondary fermentation. This one is not out yet in the stores but will be soon and will cost HUF 4,000. Koch 2016 Chardonnay Brut has really ripe aromas of apple and pear with a touch of honey; it’s fruity rather than complex, but with a rich, creamy mousse and a hint of brioche and yeastiness. A nice first effort from this generally underrated winemaker. Koch has also made three other sparkling wines out of Cserszegi fűszeres and Kékfrankos - both a rosé and a red from the latter. While the idea of a red sparkler may seem odd, sparkling Shiraz does come out of Australia, for example. Meanwhile, Sauska Tokaj Pezsgő Brut combines local and foreign talent with Tokaj’s indigenous Furmint and Hárslevelű hitting it off with Chardonnay to delicious effect. Up and down the land, Hungarian winemakers are adding sparkling wine, as are producers across the world, as interest in the style continues to soar. Sauska also makes an exciting still wine from Sauvignon Blanc, which cannot be labelled as Tokaj. While some criticize the very existence of the French grape in Tokaj’s hallowed terroir, I like this wine (2016 is the current vintage) for its ability to capture both the essence of the grape variety and the wine region. Another wine to do this comes from Somló in the form of Györgykovács Imre’s Tramini 2015, which has the rose oil typical of this aromatic grape on the nose, but it is not overpowering or too up-front, and delivers all the rich structure of Somló on the palate.

www.bbj.hu

Budapest Business Journal | February 9 – February 22, 2018

Socialite | 23

Fate, Passion and Hard Work Make the Lords of the Dance All it took was a bored businessman, a mix up over VIP tickets, a conversation with Irish-American dance legend Michael Flatley over whiskey and cigars and finally a meeting with choreographer Sándor Román for ExperiDance to be born in 2000.

is your product developer, your choreographer?” At the premiere of “One Thousand and One Years”, Vona is introduced to Román. He has met his product developer. “I am quite a spiritual man,” Vona says now. “When I received so many signs in such a short period of time, I decided I had better pay attention! It was quite an emotional decision, it wasn’t that we had some great financial plan we had worked out over six months. But there was passion, and a willingness to work hard.” That passion began to resolve around a need to reintroduce Hungarians, and particularly young Hungarians, to their folk-dance traditions. Vona says the existing dance companies were all locked into one rigid way of performing that didn’t appeal to the so-called “internet generation”. “We wanted to innovate, do something new, but we had no model to follow in Hungary. Flatley saw a niche in the market, and recognized that people were interested Tibor Vona. in something really modern and new.” cast party in a pub on Sas utca, and into conversation with Mr. Feet of Flames himself.

Cultural Inclination

ROBIN MARSHALL

“It is unique, what we have achieved in Hungary, because so many little things had to come together; it is a miracle,” says ExperiDance producer and co-founder Tibor Vona. Our interview is conducted via a translator, but that phrase - “It is a miracle” - is delivered in English. It clearly still resonates deeply with him. A little background is important to this story. Vona dances as a boy, but his parents, although they teach him it is more important to add value, to create something long-lasting rather than just make money, dissuade him from taking matters further. The creative spark, however, is there. He goes on to marry a talented ballet dancer, an ex-classmate of Román’s “first generation” of dancers. That link means Vona’s wife is invited as a protocol guest to the Budapest premiere of the dance show Román has choreographed called “One Thousand and One Years” (now part of the ExperiDance repertoire). Vona, who has gone along as her “plus one” says the show leaves him “amazed” and “deeply touched”. Three months earlier and Vona is running a magazine that has been highly successful for more than a decade, and is the main media sponsor for the Michael Flatley “Feet of Flames” production that plays in front of

70,000 Hungarians

at the Budapest Arena in 2000. A mix up in tickets mean the Vonas find themselves with the ultra VIPs in the front row, right next to Flatley’s parents. They had already been invited to the VIP after party, but the connection with the parents also gets them to the

“Why come to Hungary?” Vona wonders, “why do one of your biggest ever shows here?” Flatley tells Vona his company studied the market. There is a tradition of dance, people have enough money and cultural inclination to come, but are starved of innovative talent. It is a lightbulb moment for Vona, who says he will make Hungarian dance famous again, until Flatley remarks “Good luck, Dude, but where

Total Respect

The journey has taken them from an idea formulated in one room of a flat in 2000 to a dance troupe of unquestioned quality in Hungary, with a roster of about

130 people.

That includes a core dance team of 28, plus two others of about 12 each. But ExperiDance is also building an international reputation, and is rapidly getting to the stage where it will probably need a second core unit. A month-long French tour is being planned for November, during which time there will also be around 25 performances in Hungary.

“Basically, we can say that everything that goes on behind the curtain is Sándor’s responsibility, and what goes on in front, that is my role. But underneath it all there is total respect.”

Vona says Román and he are very different characters, but each understands the role and importance of the other. “Basically, we can say that everything “It will require more hard work to solve that goes on behind the curtain is Sándor’s this, but no other dance group works like responsibility, and what goes on in front us in Hungary,” Vona insists. “We believe finding venues, finding partners and so on we can do this and our success can grow -, that is my role. But underneath it all there and grow. It is most important to have is total respect. If you can respect diversity, good health, and the rest follows. But I you can work together successfully for don’t like to be bored!” 18 years. I think that is what Hungarian people need to learn again; to be able to cooperate as often and as much as possible, For our interview with Sándor Román, see “Giving an Old Tale New Relevance” in the in all areas of life. But how lucky I am that October 20 issue of the Budapest Business Sándor will come to me and ask me what Journal. the market needs.”

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