BePart - Bulgaria General Information

Bulgaria OverviewInvestment opportunities & General Information

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Introduction to BePart Consulting

BePart Consulting provides a platform tailored to each investor, which

allows clients to focus on their core business

Financial Advisory

Services

�Project management

�Due diligence

� Legal

Consulting

�Mergers and Acquisitions

� Equity / debt raising advisory

�Restructuring

�Project / Infrastructure Finance

Accounting and Audit

�VAT accounting and audit in Bulgarian, English and German

�Payroll services

� Tax advice

BePart Consulting is a

boutique strategic,

corporate and project

advisor in Bulgaria

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Bulgaria General Information

� Official name: Republic of Bulgaria

� Area: 110 994 km²

� Population: 7.3 million

� Capital: Sofia

� Time zone: EET (UTC+2)

� Official language: Bulgarian

� Currency: Bulgarian Lev (BGN)

� Fixed exchange rate: € 1 = BGN 1.95583 (Currency board)

� Type of government: Parliamentary

� Member of: EU, WTO, NATO etc.

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Five reasons to invest in Bulgaria

1. Political and business stability:

� EU, WTO & NATO member

� Currency board (fixed rate with € = 1.95583)

� Low budget deficit and government debt

2. Low cost of doing business:

� 10% Corporate tax rate

� 10% Personal tax rate

� Lowest cost of labor in the EU

� Favorable office rents and low cost of utilities

3. Access to markets:

� European Union / EFTA

� Russia

� Turkey / Middle East

4. Educated & skilled workforce:

� 80 000 students in foreign countries

� 25% of population hold university degree

� 46% of population speak at least one

foreign language

5. Government incentives:

� Social security benefits

� Tax benefits

� Vocational education benefits

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Did you know that Bulgaria is…..

Accommodated about 50 companies producing components and systems

for the global automotive industry. In eight of every ten cars in Europe, the

parts are produced in Bulgaria

The best outsourcing destination in Europe, according to Cushman &

Wakefield’s rating for 2015. In the world our country takes the 3rd place.

First in the world in the production of lavender. For the past three years,

our country has managed to surpass France from the first place and France

is historically a leader in this field.

The largest exporter of sunflower seeds worldwide in 2013. Our market

share in the exports of this commodity in the planet is 17.8%.

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Macroeconomic Indicators

Inflation Rate (%)

Unemployment Rate (%)

� GDP: € 44,30 billion

� GDP per capita: € 6 150

� Budget Deficit: -3.1% of GDP

� Government debt: 27.2% of GDP

� Exports, FOB: 52.1% of GDP

� Imports, CIF: 59.2% of GDP

� Trade balance: -7.1% of GDP

Macroeconomic Data (2015)

GDP Growth (%)

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Foreign Direct Investments

FDI Inflow (€ million) FDI by host country 1996-2015 (€ million)

FDI Inflow by Industry (€ million)

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Business Environment

Doing Business 2015Going Beyond Efficiency

COMPARING BUSINESS REGULATIONS FOR DOMESTIC FIRMS IN 189 ECONOMIES

A World Bank Group Flagship Report

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Taxation Rate

Country

Income Tax (%) Social Security (%)

VAT(%)

Corporate Individual Employer Employee

Bulgaria 10,0 10,0 17,9-18,5 12,9 20,0

Serbia 15,0 10,0-20,0 16,9 16,9 20,0

Romania 16,0 16,0 28,5 16,5 24,0

Hungary 10,0-19,0 16,0 28,5 18,5 27,0

Czech Rep. 19,0 22,0 34,0 11,0 21,0

Poland 19,0 18-32 22,1 13,7 23,0

Turkey 20,0 15-35 27,0 15,0 18,0

Slovakia 23,0 19-25 34,8 13,4 20,0

UK 23,0 0-45 13,8 12,0 20,0

Italy 27,5 23-43 30,0 10,0 21,0

Spain 30,0 24,8-52 29,9 6,4 21,0

Germany 30-33 14-45 19,7 20,6 19,0

France 33,3 5,5-41 50,0 20,0 19,6

Cyprus 12,5 20-35 7,8 7,8 19,0

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Cost of doing business

Electricity

0.069(€/kWh)

Water

1.09 (€/m³)

Industrial Rents (Sofia)

From € 2.5 (m²/month)Office Rents (Sofia)

From € 9 (m2/month)

Cost of Labor

Salary (Min.) - € 215

Salary (Avg.) - € 468

One of the most competitive costs in Europe!

Gas

0.032 (€/kWh)

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Cost of doing business in the EU

Country

Electricity

Country

Labor Costs

(€ / kWh) 2015 (€ / per hour) 2015

Bulgaria 0.0682 Bulgaria 3,8

Romania 0.0707 Romania 4,6

Netherlands 0.0721 Hungary 7,3

Austria 0.0731 Poland 8,4

France 0.0755 Czech Rep. 9,4

Czech Rep. 0.0761 Croatia 9,4

Hungary 0.0778 Greece 14,6

Germany 0.0809 Cyprus 15,8

Poland 0.0833 UK 22,3

Croatia 0.0869 Italy 28,3

Italy 0.0949 Germany 31,4

Greece 0.1037 Austria 31,5

Cyprus 0.1316 Netherlands 34,0

UK 0.1435 France 34.6

EU-28 0.0917 EU-28 24,6

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Industrial Zones in Bulgaria

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Unemployment rate by municipalities

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Machine Building

The Sector:

� More than 100 000 people work in the sector in 2015

� 18% of GDP was generate by the sector for 2015

� 5 000 € annual wages per employee in 2015

Advantages of the sector:

� Established traditions and experience in the sector

� Continuous growth between 2000 and 2015

� Qualified work force at affordable price

� Easy access to the markets

� Networks of technical universities and colleges

� Available physical infrastructure

Successful examples:

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Information Technology

The Sector:

� More than 17 500 specialists work in the sector in 2015

� 1.86% of GDP was generate by the sector in 2015



� Established traditions and experience in the sector

� One of the fastest growing sectors of the economy

� The revenues of Bulgarian IT Companies grew by 11% (€ 819 millions)

� Over 4 300 students get a degree in IT each year

� Bulgarian internet speed is one of the fastest in the world


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Business Process Outsourcing

The Sector:

� More than 30 000 people work in the sector

� 3% of GDP was generate by the sector in 2015

� 8 000 € annual starting salaries per employee in 2015


� Bulgaria offers qualified and cost-effective workforce and advantageous rents of

commercial space

� BPO sector generates over € 964 million revenues

� Bulgaria is the best outsourcing destination in Europe

� The average BPO company in Bulgaria provides services in more than 25 languages


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Electronics

The Sector:


�6 000 € annual wages per employee


� Availability of experienced engineers

� Qualified assembly workforce at affordable cost

� Easy access to EU, Russian and Middle East markets

� More than 75% of the production of the Electronics manufactured in Bulgaria is exported

� Bulgarian universities are working together with the companies in the sector to create

qualified workforce


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Food and Beverage

The Sector:


� 5 % of GDP was generate by the sector in 2015



� Unique natural conditions for the cultivation of a wide variety of crops, fruits and vegetables

� 49% of the country's territory is farming land

� A well-established infrastructure available and affordable human resources

� Strategically located to provide routes to Europe, Russia, CIS, the Middle East, and North

Africa


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The Government Support

The Bulgarian legislation introduces a system of promotion measures for initial investments in

tangible and intangible fixed assets and creating new employment linked thereto, according to

the legislation of the EU

Investments must be related to the following sectors:

� Manufacturing

� Research and Development

� Education

� Healthcare

� High-tech Services

� Warehousing and Logistics

The government incentives for:

� Class B Investment Projects

� Class A Investment Projects

� Priority Investment Projects

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What Bulgaria Offers?

LOWEST COST IN THE EU

� Competitive cost of labor

� Dividend Tax Rate (5%)

� Lowest Tax Rate in the EU (10%)

LOW RISK

� Political Stability

� Economic Stability

� Currency Board

INCREASE COMPETITIVENESS

� Staff Qualification

� Improving Productive Capacity

GOVERNMENT INCENTIVES

� Class B Investment Projects

� Class A Investment Projects

� Priority Investment Projects

ACCESS TO MARKETS

� EU / EFTA

� Russia / Asia

� Turkey / Middle East

� North Africa

EDUCATED AND SKILLED

WORKFORCE

� Half of the population

speak at least one foreign

language

� Quarter of population hold

university degree

� More than 80 000 students

abroad

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BePart Consulting Select Transactions

2011

EEPro GmbH

Acquisition of PV Project “Dobrich” 15 MW

Pre-transaction advisory

2011

EEPro GmbH

Acquisition of PV Project “Karlovo” 5 MW

Pre and post transaction advisory, accounting, support

services

Current

STIR Ltd.

Private placement and/or strategic investor for local project

SPVs

2013

Nu Boyana Film Studios

Nu Boyana Film Studios used our services for support and

delivery of services and equipment during the filming of

the “Expendables 3”

2009

BP Solar

Advising the board on possible acquisition of real estate assets

in Bulgaria

2012

Chris N Ltd.

Financing advice to Chris N on liability management and debt

restructuring

Current

BG REI

Advising the board on the sale of real estate assets

Pre-transaction advisory, investor contacts,

deal structure

2006-2009

Vointeh EOODMinistry of Defence

Principal

Performed Liquidation Proceeding Accounting for the

biggest Ministry of Defencestate

owned company at the time

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Contacts

Daniel NikolovManaging Director

Tel: +359 2 422 40 41Fax: +359 2 489 00 92Mob: +359 888 838 343 [email protected]

Office 1

Bulgaria, 1000 Sofia15 Slavyanska Str.Tel.: +359 2 422 40 41Fax: +359 2 489 00 92Email: [email protected] www.bepart.bg

Office 2

Bulgaria, 1233 Sofia35-37 Klokotnitsa Str.Tel.: +359 2 931 56 34Fax: +359 2 931 21 93Email: [email protected] www.bepart.bg Be part of a winning team

BePart - Bulgaria General Information

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