2. What Opportunities Can the Bulgarian Market Offer to the Investors
Bulgaria in 2008: ● 45th place in the World’s Bank Conditions-for-Doing-Business rank amongst 178 countries; ● 2nd place (after Denmark) in terms of business climate conditions in EU-27, according to EuroChambers study; ● 9th place in terms of business attractiveness in the world (1st place amongst the CEE countries), according to the A.T.Kearney report; ● 7th place as attractive destination for investments in the world, according to the UNCTAD rank.
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

3. What Opportunities Can the Bulgarian Market Offer to the Investors
Bulgaria occupies the first place amongst 178 countries in the World’s Bank rank for successful taxation reforms in 2006 – 2007:
● 10 % corporate tax rate; ● 0 % profit tax rate for 138 municipalities with unemployment over the average national level; ● 0 % tax rate on the capital profit; ● 5 % tax rate on the dividends from ; ● Social securities burden reduction by 6 percentage points for 2006 and new reduction by 3 percentage points from ; ● 10 % “flat tax rate” on the personal income.
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

4. What Opportunities Can the Bulgarian Market Offer to the Investors
Bulgaria from 1st January 2009:
● Workers’ pension installments reduction to 8 %; ● Employers’ pension installments reduction to 10 %; ● The state will provide pension installment of 12 % for each employer.
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

5. What Opportunities Can the Bulgarian Market Offer to the Investors
Sustainable Economic Growth
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

6. What Opportunities Can the Bulgarian Market Offer to the Investors
Long-Term Trend for Sustainable Economic Growth
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

7. What Opportunities Can the Bulgarian Market Offer to the Investors
Unemployment Level on Monthly Basis in Bulgaria, January 2006 – July 2008, %
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

8. What Opportunities Can the Bulgarian Market Offer to the Investors
Well structured capital market: ● Legislation fully synchronized with the European maximum protection for domestic and foreign investors; ● National Corporate Governance Code, elaborated on consensus basis by the entire investment community, in which the good practices of the EuropeanIssuers member states are fully incorporated.
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

9. What Opportunities Can the Bulgarian Market Offer to the Investors
Distribution of the Companies, Who Have adopted the National Corporate Governance Code, on the Free Float Basis
According to the Association of the Bulgarian Investors’ Relations Directors
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

10. What Opportunities Can the Bulgarian Market Offer to the Investors
Capital market infrastructure: ● Financial Supervisions Commission – regulator, member of the International Organization of Securities Commissions (IOSCO); ● Bulgarian Stock Exchange- Sofia – organized market, member of the Federation of European Securities Exchanges (FESE); ● Central Depository АD – registration and clearing agent, member of the European Central Securities Depositories Association (ECSDA); ● Bulgarian Industrial Capital Association – union of the issuers, member of EuropeanIssuers; ● Association of Bulgarian Investors’ Relations Directors; ● Organizations of investment intermediaries, commercial banks, pension funds, managing funds.
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

11. What Opportunities Can the Bulgarian Market Offer to the Investors
BSE Capitalization,2004–2007, billions BGN
According to BSE data.
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

12. What Opportunities Can the Bulgarian Market Offer to the Investors
SOFIX Exchange Index, 18 Mar – 08 Sep 2008
According to BSE data.
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

13. What Opportunities Can the Bulgarian Market Offer to the Investors
DJIA Exchange Index,
19 Mar – 08 Sep 2008
FTSE 100 Exchange Index,
17 Mar – 08 Sep 2008
According to BSE data.
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

14. What Opportunities Can the Bulgarian Market Offer to the Investors
Main Exchange Indexes Comparison
State
Index
Р/Е
China
Shаnghai Composite
33.26
Rumania
BET-C
22.50
Bulgaria
SOFIX
18.72
USA
S&P 500
15.86
DJ Industrial
15.31
Japan
NIKKEI 225
13.71
Poland
WIG20
11.85
Germany
DAX
10.13 UK
FTSE 100
10.01
According to Investor BG data,
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

15. What Opportunities Can the Bulgarian Market Offer to the Investors
Main European Exchange Indexes Changes, 2007
State
Index
Value on
Dec 31st 2007
Change from the beginning of the year
Central and Eastern Europe
Bulgaria
BG40
518,06
-0,5116
Russia
RTS
2290,51
-14,14%
BGTR30
1097,48
-39,36%
Serbia
BELEX
3830,84
-29,78%
SOFIX
1767,88
-42,62%
Romania
BET
9825,38
-39,46%
BGREIT
103,24
-14,38%
Greece
ASE
5178,83
-34,45%
Western Europe
Czech Republic
PSE
1815,1
-18,91%
Dutch
AEX
515,77
-22,46%
Slovenia
Total Market
11369,58
-31,19% GB
FTSE 100
6456,9
-16,18%
Croatia
CROBEX
5239,03
-30,57%
Italy
MIB Index
38554
-26,52%
Poland
WIG
55648,53
-23,80%
Spain
IBEX 35
15182,3
-21,74%
Slovakia
SSI
445,65
4,45%
France
CAC 40
5614,08
-21,76%
Hungary
BSE
26235,63
-15,35%
Germany
DAX
8067,32
-19,68%
Turkey
ISE 100
55538,12
-24,01%
Sweden
OMX 30
1081,44
-19,79%
According to Investor BG data.
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

16. What Opportunities Can the Bulgarian Market Offer to the Investors
Average Costs for Rising Capital through Public Offerings
Market (State)
IPO
SPO
Eurolist
(France)
7,0 %
3,5 %
Prime/General Standard (Germany)
7,5 %
3,0 %
Main Market – LSE (GB)
8,9 %
2,1 %
BSE
(Bulgaria)
1,5 %
According to study of Prof. Cr.Kaserer and Prof. D. Schiereck for the period 1999 – 2007.
As far as the admission fees and listing fees, the BSE offers significantly lower rates compared to the other regulated markets;
Short terms for public offerings realization.
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

17. What Opportunities Can the Bulgarian Market Offer to the Investors
Why to invest on the Bulgarian Capital Market :
● Outlined macroeconomic advantages – sustainable high level of
economic growth; ● Attractive tax environment; ● Fully developed capital market– clear legislation,
structured participants; ● Excellent conditions for the issuers – going public and being
public; ● Significant growth potential of the capital market.
Vasil Velev,
Conference The Prospects for Capital Markets in Southeast Europe
16th September 2008, Sofia, Bulgaria

18. Thanks for Your Attention!
Bulgarian Industrial Capital Association 1113 Sofia, Bulgaria 20, Frederic Joliot-Currie St., fl. 8 Tel./fax: , web: