1. Bulgaria – investment climate and business opportunities February 2013

2. Macroeconomic indicators show consistent pre-crisis economic growth and quick post-crisis recovery Real GDP GrowthInflation (HICP) Unemployment FDI Inflow Source: Bulgarian National Bank, Eurostat 20112010 0.4% 200920082007200620052004 20062005200420112010200920082007 20112010 9.2% 20092008 6.3% 2007 6.9% 200620052004 EU-27BulgariaEU-27Bulgaria 2011 1,341 2010 1,209 2009 2,437 2008 6,728 2007 9,052 2006 6,222 2005 3,152 2004 2,736 € mln. EU-27Bulgaria

3. FDI in Bulgaria comes mostly from EU countries and is concentrated in four main sectors Source: Bulgarian National Bank FDI by host country, 1996-2011 (€ mln.)FDI flows by industry, 1996-2011 (€ mln.) Telecom2,260 Energy2,699 Construction2,705 Manufacturing6,479 Trade6,522 Finance7,652 Real Estate8,204 Other2,664 (10) Hungary1,272 (9) Italy1,279 (8) USA1,283 (7) Russia1,486 (6) Cyprus2,257 (5) Germany2,523 (4) UK2,733 (3) Greece3,664 (2) Austria5,809 (1) Netherlands6,018

4. 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

5. Government financial indicators are remarkable not only in the region, but on a pan-European scale Lithuania Latvia Cyprus Italy -6%-5%-4%-3%-2%-11%-10% Average budget deficit/surplus (2006-2011) 16%15%1%0% Turkey Croatia Norway -1% Iceland United Kingdom Sweden Finland Slovakia Slovenia Romania Portugal Poland Austria Netherlands Malta Hungary Luxembourg France Spain Greece Ireland Estonia Germany Denmark Czech Republic Bulgaria Belgium Source: Eurostat Average government debt (2006-2011)

6. 10/1004/1110/1104/1210/1207/1201/1207/1101/1107/1001/1004/10 Spain Hungary Greece Estonia Bulgaria Source: Eurostat, Moody’s Portugal Lithuania Latvia Iceland Aaa A1 Baa1 Ba1 B1 Caa1 Ca Japan United Kingdom Germany China Switzerland Turkey Sweden BG Hungary United States Greece Egypt Brazil Denmark Czech Republic Italy Austria Netherlands India France Poland Euro Area Spain Budget deficit for 2011, % of GDP Bulgaria is the only country in Europe with a credit rating upgrade by Moody’s in 2010 and 2011 Bulgarian economy maintains its excellent performance despite global challenges

7. Bulgaria has one of the lowest business costs in Europe Lowest corporate income tax rate in Central / Eastern Europe *0% tax rate for manufacturing companies in regions with low employment * From January 2013 Most competitive cost of labor in Central / Eastern Europe Monthly wage, nominal, € / month December 2011 Source: Eurostat; Bank Austria, CBRE 23% Hungary19% Romania16% Bulgaria (*)10% Slovenia20% Turkey20% Croatia20% Poland19% Czech Rep19% Slovakia(*) Slovenia1,520 Croatia1,048 Czech Republic995 Poland876 Slovakia792 Hungary758 Serbia518 Romania363 Bulgaria350 Belgrade Sofia Bratislava Zagreb Moscow100 Warsaw Prague Budapest Bucharest Office rents in Bulgaria are among the lowest in Europe € / sq.m /m, 2012

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

9. Services: –Transport and Logistics –Information technologies –Outsourcing of business processes –Health and tourism related to healthy lifestyle Industry: –Transport equipment and machine building –Electronics and Electrical engineering –Chemical industry –Food and Agriculture Resources: –Mining –Oil Attractive FDI sectors

10. Balneology and SPA

11. Magura cave Belogradchik Rocks Baba Vida Fortress Rila monastery Rupite Nessebar Fortress Pliska SOFIA Troyan monastery Etar Ancient Plovdiv Pyramids of Melnik Hundreds of historical, cultural and natural landmarks are located all over the country Fortress Kaliakra Veliki Preslav Fortress Tsarevets Sozopol Vitosha mountain Kazanluk's Thracian Tomb Perperikon

12. Bulgaria is an attractive destination for treatment, prophylaxis and recreation Excellent geographical, climatic and environmental conditions Bulgaria ranks second in Europe after Iceland in the number the mineral springs, providing all types of mineral water existing in nature. The unique combination of seaside, mountains and mineral water makes Bulgaria a suitable place for health promotion throughout the year Long-standing tradition in balneology and spa tourism Refurbished world-class medical and rehabilitation centres and hotels Highly qualified and experienced healthcare staff Relatively low cost of medical services Well-developed network of private cosmetic surgery and dental clinics

13. Mineral water is among the greatest treasures of Bulgaria Bulgaria has about 600 mineral water deposits with over 1600 springs of varying physic-chemical composition, temperature (10°C - 103°C) and indisputable curative properties

14. 1400 AD Bulgaria has been famous for its climate and mineral springs since Antiquity Ottoman times Thracian & Roman period 5-6 Millenium BC 1878 AD 3-7 century AD1-2 century AD Prehistoric village established near Hissarya Roman Emperor Constantine the Great: “Serdica spring is my Rome!” Spa centers were established such as: Augustra (Hisarya), Dezudava (Sandanski), Pautalia (Kyustendil) and Serdika (Sofia) Byzantine period Baths and water fountains built near many mineral springs Empress Helena was a frequent visitor to Odessos (now Varna)

15. Bulgaria ranks first in Europe according to the availability and diversity of mineral water and spa resorts Velingrad the SPA capital of the Balkans with 80 mineral springs Sandanski the town recognized as the best natural “hospital” in Europe for bronchial asthma Hissar a resort with a millennial history, used by the Thracians and in Roman times Pomorie the most popular and modern mud therapy centre in the country Sofia about 50 hydrothermal deposits in the vicinity of Sofia

16. SPA resorts in Bulgaria Velingrad 40 km from Sofia, located in one of the most picturesque part of The Rhodope Mountains “Kleptuza” is the largest Karst spring in Bulgaria (1200L ice-cold water / second) Indications for treatment: diseases of the central and the peripheral nervous system orthopedic and traumatic diseases cardio-vascular diseases endocrinal and metabolic diseases gastro-intestinal diseases Sapareva Banya located 75 km southwest of Sofia at the foot of the Rila mountain the only one in Bulgaria and continental Europe geyser-fountain Indications for treatment: diseases of locomotive and nervous system gynecological skin diseases prophylaxis of osteoporosis tooth caries

17. SPA resorts in Bulgaria Sandanski located halfway between Sofia and Thessaloniki, in the foot of the Pirin mountain suitable climate (with the highest average annual temperature, +14.1°C) Over 80 mineral water springs Indications for treatment: diseases of the respiratory system chronic diseases treatment after pneumonia, bronchiectasitis chronic diseases of the joints diseases of peripheral nervous system, neuralgia, neuritis, plexitis rehabilitation after strokes Hissarya situated on the south slopes of Sredna gora mountain, at an altitude of 528 m, 140 km from Sofia. Contains one of the best preserved Roman public baths (thermae) in Europe Indications for treatment: urinary-secretory system alimentary system: chronic gastritis and gastroduodenitis, functional diseases of the stomach, dyspeptic syndrome gallbladder-liver diseases metabolism diseases: хhyperamnesimia, obesity, diabetes, podagra; loco-motory system arthro-rheumatic diseases

18. SPA resorts in Bulgaria Pavel Banya situated on 185 km from Sofia, in the unique Valley of Roses, between Stara planina and Sredna gora nine mineral springs, 7 useful for balneology transitional continental climate, with average annual temperature +10.8ºC Indications for treatment: diseases of the peripheral nervous system degenerative neurological diseases orthopedic diseases: articulations, posttraumatic and degenerative diseases and disease of the joints gynecological diseases Pomorie about 400 km of Sofia and 20 km of Burgas continental climate with Mediterranean influence the lagoon lake, from which extracted the curative firth mud Indications for treatment: diseases of the locomotory system women's and men’s gynecological diseases skin diseases: psoriatic arthritis, neurodermitis, chronic eczemas, skin ulcers diseases of the respiratory system metabolic diseases

19. InvestBulgaria Agency Thank you for your attention and have a nice and enjoyable stay in Bulgaria!