Business opportunities in Bulgaria Alexandra Bacheva CIBANK JSC, part of KBC group

Why Bulgaria? Investment friendly EU funds Belgian society

Investment friendly Strategic location and easy access to markets of EU, Russia/CIS & Middle East Stable environment (EU member, Currency board, EU harmonized legislation) Low cost of doing business (affordable rents, utility costs, wages) Tax benefits Government incentives for investors and EU programs Educated and skilled workforce

1 EUR investment = 4 EUR!? Over 11 BEUR EU subsidies for projects in Bulgaria 2014-2020 EU programs for various sectors and companies in different business stages Applicable also to Belgian companies registered in Bulgaria Investment in biscuit production line Total cost: 930 000 EUR EU subsidy: 630 000 EUR Purchase of agricultural machines Cost: 1 000 000 EUR EU subsidy:750 000EUR “Struma” Highway construction contract- 34 000 000 EUR

Our experience for a successful EU project Find your way in a sea of information. Discuss with your Bank before starting the preparation for your EU project Benefit from financial lines for funding/securing your project- alternative and/or combination Find a reliable consulting company Take time for the preparation of the project Implementation and reporting of the project are important

Well developed Belgian-Bulgarian relations Bulgaria is among the top 10 importers in Belgium 990.9MEUR (2005-2013) - Belgian direct investments 140 Belgian businesses are active in Bulgaria Belgian Trade Commission in Bulgaria – representative of AWEX, Brussels Invest & Export and Flanders Investment & Trade (FIT) – the guide for all Belgian entrepreneurs Belgian-Bulgarian Luxemburg Business Club in Bulgaria – the Business exchange meeting point for the Belgian community in Bulgaria

Turn your challenges into opportunities Challenges in Belgium? Opportunities in Bulgaria! Limited possibilities to expand production? New markets? High operational cost? Investment support / EU programs, available (industrial) plots and buildings Geographical expansion Improving margins through: (partial) outsourcing ,Joint- ventures & subcontracting

Solvay Success stories Solvay In 1997 Solvay, Belgium bought 60% of the soda factory in Devnya Motivation for launching business in Bulgaria - proximity of raw materials and the convenient transport corridors (Varna West Port) 1997-2011 - €306m invested in innovation and modernization of the production plants Solvay Sodi Bulgaria is Europe’s biggest soda ash plant with a capacity of 1.5 million tons per year A number of corporate social responsibility awards in Bulgaria Cooperation with universities for onsite visits and internship programs for students

Success stories Roger Vanden Berghe Reallocation of labor-intensive production was identified as a solution for retaining the market position of the Belgian company The long-term partnership with a BG carpet producer helped them to recognize Bulgaria as the suitable location The local subsidiary was set up in 2011 as an asset-based transaction The business locally is growing and the production is expanding.

Success stories Cordeel Group The Belgian owned group started up its business in Bulgaria 15 years ago and has specialized in civil and industrial construction. Preferred partner for investors in Bulgaria with over 35 construction projects of local and foreign investors all over the country Winner of “Building of the year” award in 2013 and 2014 The formula for success is the well- known internationally brand, expertise of the group combined with strong local management.

About us CIBANK and the insurer DZI (ДЗИ) are 100 % owned KBC subsidiaries operating on the Bulgarian market. KBC is present in Bulgaria since 2007 Bulgaria is one of the KBC group core markets

How can we help? A team dedicated to international clients: We know the international service levels and combine them with a thorough knowledge of the local market We care – it’s more than a job. Easy access: Smooth and well organized establishment of banking and insurance solutions (first need and through the existence of the company) We take care of personal banking and insurance needs We know who you are: direct communication with our Belgian colleagues Direct contacts with (Belgian) top management of the bank. We know the market: we have a nation wide presence and can help you to find and assess potential partners We have a specialized team to help you to assess how to benefit from national and EU projects We take care of contacts with your peers We are part of the Belgian community where our Belgian executives play an active role.

Your success story in Bulgaria is waiting for you!

Head International Network Desk Alexandra Bacheva Head International Network Desk Corporate Banking Tel: +359 2 9029 116 GSM: +359 878 787 513 Abacheva@cibank.bg www.cibank.bg