1. Bulgaria – Investment and Business Opportunities
July 2011

2. Bulgaria offers the best of both worlds – a key strategic location, bridging Europe and Asia, low corporate tax and political and economic stability and the lowest business operational costs in the EU
Bulgaria has a strategic geographic location. Its position on the European continent allows investors to reach the entire market of the European Union and the markets of central and eastern Europe, which represent a total population of 853 million.
With its parliamentary republican political system, the political situation in Bulgaria is stable and the legislature, the executive and the judiciary are independent of the parliament. As of Jan1, 2007, Bulgaria is a part of the European Union and has harmonized its legal system in line with the EU requirements. In April 2004, the country became member of NATO.
Foreign investment in Bulgaria has never been so dynamic and so massive. During recent years, a significant number of international companies have opened offices in Bulgaria - Solvay, Umocore, Italcemente Group, Liebherr, Kraft, Nestle, American Standard, Philip Morris, Metro, Lindner, Praktiker and SAP to name but a few. As a result of a liberal financial policy and continuous economic growth, Bulgaria has become very attractive to foreign investments. In addition, local companies are also increasing their share of business in Bulgaria and abroad.

3. Macroeconomic indicators show consistent growth in the years leading up to the global financial crisis
Real GDP Growth
Inflation
EU-27
EU-27
EU-27
0.2%
2004
2005
2006
2007
2008
2009
2010
2011
2004
2005
2006
2007
2008
2009
2010
2011
* Q1 2011
* April 2011
Unemployment
FDI Inflow
EU-27
€ mln.
9.3%
6.9%
6.3%
2004
2005
2006
2007
2008
2009
2010
2011
2004
2005
2006
2007
2008
2009
2010
* April 2011
Page 3
Source: Bulgarian National Bank, Eurostat

4. Despite the global ecnomic downturn , Bulgaria’s investment climate is good and the countries economic performance indicators are positive.
Macroeconomic and financial stability:
Real GDP growth rate % (2009)
Inflation Rate, annual change - 0.6% (2009)
Unemployment Rate - 9.1% (2009)
No currency risk, local currency is pegged to Euro
Budget surplus for the previous 5 years (-3.9% for 2009)
Investment grade credit rating by major rating agencies
Local and International Agreements to safeguard FDIs
Government and EU funding for many industries

5. Visible signs exist that the Bulgarian economy is emerging rapidly from the crisis%
Exports (€ mln.)
Real GDP growth (% annual basis)
+44%
4,500
+6%
4.8%
4,000
0.0%
+66%
-0.4%
3,500
-3.3%
3,000
-4.6%
-6.0%
-6.7%
Q1 2008Q1 2008
Q2 2008Q2 2008
Q3 2008Q3 2008
Q4 2008Q4 2008
Q1 2009Q1 2009
Q2 2009Q2 2009
Q3 2009Q3 2009
Q4 2009Q4 2009
Q1 2010Q1 2010
Q2 2010Q2 2010
Q3 2010Q3 2010
Q4 2010Q4 2010
Q1 2008Q1 2008
Q2 2008Q2 2008
Q3 2008Q3 2008
Q4 2008Q4 2008
Q1 2009Q1 2009
Q2 2009Q2 2009
Q3 2009Q3 2009
Q4 2009Q4 2009
Q1 2010Q1 2010
Q2 2010Q2 2010
Q3 2010Q3 2010
Q4 2010Q4 2010
Q1 2011Q1 2011
Source: National Institute of Statistics, Bulgaria

6. Role of Bulgaria as FDI location has grown significantly for the last 10 years
Inward FDI per country (€ mln.)
10,000
9,000
8,000
7,000
6,000
5,000
Romania
4,000
Croatia
3,000
Bulgaria
2,000
Czech Republic
1,000
Hungary
Slovakia
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

7. 6
FDI in Bulgaria comes mostly from EU countries and is concentrated in four main sectors
FDI by host country, (€ mln.)
FDI flows by industry, (€ mln.)
(1) Netherlands
5,740
Real Estate
8,419
(2) Austria
5,183
Finance
7,422
(3) Greece
3,763
Manufacturing
6,552
(4) UK
2,948
(5) Germany
2,646
Trade
6,425
(6) Cyprus
2,229
Construction
2,608
(7) Hungary
1,362
Energy
2,492
(8) USA
1,337
Telecom
1,955
(9) Russia
1,229
(10) Italy
1,221
Other
2,376
Page 7
Source: Bulgarian National Bank

8. Why invest in Bulgaria? Political and business stability
EU and NATO member
Currency board
Low budget deficit and government debt
Low cost of doing business
10% corporate tax rate
Lowest cost of labor within EU
Access to markets
European Union / EFTA
Russia
Turkey / Middle East
Educated and skilled workforce
Government incentives

9. Bulgaria enjoys one of the most stable political and economic environments in Southeastern Europe
Bulgaria is a member of some of the most prestigious political organizations
European Union member since 2007
NATO member since 2004
WTO member since 1996
Strong commitment to political reform and transparency has earned praise from leading media and experts worldwide
Stable currency
Bulgarian Lev has been pegged to the Euro since the adoption of the currency in 2002
Currency board backed by IMF
”the culture of impunity that once plagued Bulgaria has largely gone“
May 27, 2010
“The Bulgarian economy looks to be stabilizing after weathering the recent financial crisis better than most of its neighbors”
“the government has earned accolades from Western economists”
July 20, 2010

10. %
Government financial indicators are remarkable not only in the region, but on a pan-European scale
Bulgarian government debt is 3rd lowest in Europe
Budget surplus / deficit has consistently outperformed regional and European averages
Government debt, % of GDP
Estonia 7%
Bulgaria
15%
Romania
24%
Czech Republic
35% UK
68%
Bulgaria
Germany
73%
Hungary
78%
Euro Area
Euro area
79%
CEE average
Greece
115%
2005
2006
2007
2008
2009
Source: Eurostat

11. ,
Bulgaria has one of the lowest business costs in Europe (1) Taxes and Labor Costs
Lowest corporate income tax rate in Central / Eastern Europe
Most competitive cost of labor in Central / Eastern Europe
Average wage,
€ / month Oct 2010
Bulgaria
332
Bulgaria (*)
10%
Romania
431
Romania
16%
Serbia
445
Hungary
19%
Hungary
713
Slovakia
19%
Slovakia
772
Croatia
20%
Poland
806
Czech Rep
20%
Czech Republic
1,022
Croatia
1,044
Turkey
20%
Slovenia
1,488
* 0% tax rate for manufacturing companies in regions with low employment
Page 11
Source: Eurostat; CEIC

12. 629
Bulgaria has one of the lowest business costs in Europe (2) Energy costs and Prime Location Office Rent
Bulgarian cost of electricity for industrial users is 67% of the European average
Office rents in Bulgaria are among the lowest in Europe
€/kWh, 2009
€ / sq. m / year,
Q1 2010
Estonia
Sofia
Zagreb
Bulgaria
Bucharest
Romania
Budapest
EU average
Prague
Germany
Warsaw
Czech Rep
Istanbul
Hungary
Athens
Slovakia
Moscow
Page 12
Source: Eurostat, CB Richard Ellis

13. Bulgaria is only 3 hours flight from all major destinations in Europe, Russia and the Mediterranean region
Strategic geographic location
Major transport corridors passing through Bulgaria
EU and EFTA
Russia and CIS
Turkey and Middle East

14. The role of the European Union as a trade partner for Bulgaria has been growing consistently
Share of EU-27 exports has grown by 50 percentage points since 1995
... in absolute terms EU-27 exports have grown approximately 5 times
10,000
9,000
8,000
EU-27
€ mln
7,000
6,000
5,000
Balkans
4,000
Asia
3,000
2,000
Other
29%
1,000
17%
16%
14%
1995
2000
2005
2009
Page 14

15. An educated and skilled workforce is among the main advantages of Bulgaria
Almost 60,000 students graduate every year from over 50 universities
Bulgaria has one of the highest proportions of students abroad from all European countries
Iceland
17.8%
Business
19,480
Ireland
14.2%
Social sciences
8,372
Slovakia
10.2%
Engineering
7,178
Bulgaria
Education
3,677
Greece
Health
3,166
Austria
Law
1,553
Germany
Architecture
EU-27 average
Agriculture
Romania
Students in another EU / EEA country, % of all
Other
12,684
Czech Republic
Page 15
Source: National Institute of Statistics, Bulgaria

16. The government supports specific industries under the Investment Promotion Act (IPA) Derelli Company Ltd can help you make the most of this
Investments must be related to the following sectors:
Manufacturing
Research & development
Education
Healthcare
High-tech services
Warehousing and logistics
Minimum investment amounts must exceed €10m
€3.5 in regions with high unemployment and €2m for investment projects in high-tech services
Benefits for certified investors include:
Shortened administrative procedures
Preferential acquisition of state or municipal land
Financial support for professional training / education
Infrastructure subsidies
Individual administrative services
Page 16

17. Biggest investors are supported through a priority investment scheme
Priority projects can be related to all sectors of the economy, which do not contradict regulation 800/2008 of the European Commission
Subsidies not allowed in mining, primary agriculture production, and shipbuilding
Priority projects should exceed €50m and create at least 200 new working places for a 3-year period
€ working places for certain manufacturing projects
€10m + 50 working places for high-tech services and R&D
Priority projects receive all benefits for certified investors, as well as the following:
Lowest possible costs for the acquisition of government and municipal land + waived taxes for land status changes
Working group for project support is assigned by the Council of Ministers
Financial grant scheme for up to 10% of the investment project cost (50% for R&D)
Page 17

18. Attractive FDI sectors
Services:
Information technology
Public Sector
Transport and tourism
Industry:
Electronic and electrical equipment
Machine building
Metal processing
Chemical Industry
Resources:
Mining
Oil
Alternative energy
Source: Deloitte Consulting; United Nations (UNCTAD)

19. Leading global investors have chosen Bulgaria as an FDI destination
IT & BPO
(Business Process Outsourcing)
Mechanical and Electrical Engineering
Construction Materials
Telecom and Media
Energy
Finance

20. Derelli Company Ltd Our Consultancy Services:
Macroeconomic data on Bulgaria and the Bulgarian Security Industry – all aspects from manufacturing and sales to guarding and identification of key business opportunities
Legal and Tax Advice – everything you need to know about setting up a business here –we’ll advise you on and undertake on your behalf
Business Intelligence and Statistical Data
Recommendation and evaluation of investment projects
Identification of potential suppliers, contract manufacturers and joint-venture partners
Personalized admin,tax,legal servicing and practical assistance from local and international experts
Liaison with central and local governments
Liaison with branch chambers and NGOs, liaison with the Government investment promotion Agency, part of the Ministry of Economy, Energy and Tourism 14

21. DERELLI Company Ltd.
Sofia 1202, 21 Rodopi Str.
Phone: (+359 2)
Fax: (+359 2)