#1Invest Bulgaria - your success is our mission#2About us > One-stop-shop > End-to-end support ➤ Enhance investment climate > Synergies with the ecosystem > Support for future expansions INVESTBULGARIA AGENCY g Tailor-made solutions Long-term partnership approach Added Value Agility#3Bulgaria TOTAL AREA 110,994 km² POPULATION - 6.8 million CAPITAL CITY - Sofia MEMBER OF EU, NATO, IMF, WTO WORLD TRADE ORGANIZATION out of 162 out of 162 out of 190 out of 190 out of 180 32nd 22nd 25th 21st 36th Economic Freedom off the World Fraser institute 2022 Sound Money Fraser institute 2020 Protecting Minority Investors DB index 2020, World Bank 2020 Trading Across borders DB index 2020, World Bank 2020 Economic Freedom Heritage Foundation. 2020#4Why Bulgaria Market Free export to the EU People Competitive One of the strongest IT and engineering talent pools in EU GDPR and EU expertise Access to 1.3 bn customers 50% speak at least one foreign language Access to +$20 bn of national and EU funding by 2030 Connecting point to Asia and Middle East Labour force - 3,3 mln people with 5,3% unemployment rate Resilient infrastructure and low operational costs#5Sources: Bulgarian National Bank, Eurostat Competitive in the EU Did-you-know Bulgaria is in Top 10 countries in the world with fastest mobile internet connection In 2022, GDP grows by 3.4% Among the first in terms of annual growth of industrial production in the EU +17% Resilient electricity and gas supply at one of the most competitive prices in the EU One of most favorable cost of living among major CEE countries The most competitive operational costs in the EU Bulgaria ranks 3rd in terms of IT specialist per capita Bulgarian Olympiads are at the top of the world rankings in mathematics, informatics and physics First world-class Al research and deep- tech institute in Eastern Europe#6Riga Helsinki llin Saint Petersburg Pskov Klaipeda 15 Orsha Kaliningrad Vilnius Minsk Gdansk 9 6 Gomel Transportation and Logistics Moscow Nizhny to Budapest, Bratislava, Vienna, Prague and Dresden to Kiev and Helsinki to Budapest, Bratislava and Vienna to Black Sea 6 1 Berlin 2 ° Poznan Warsaw Kiev 3 Dresden o Wroclaw Lviv to Belgrade, Zagreb, Ljublana, Budapest and Vienna Katowice Prague Ostrava 6 fir 4 9 rg o Brno 5 Zilina Uzhhorod Chis inau Bratislavá Odessa Salzburgo Vienna Graz ° Budapest Arad 5 Venice Ljubljana o Bucharest, Constanza 4 Zagreb to Skopje, Tirana, Bari Rijeka 5 8 Belgrade Varna and Valona Sarajevo Nis Burgas Dimitrovgrad Sofia Ploce Skopje 8 Durres Igoumenits a Istanbul Alexandroupolis Thessalonik Rousse Vidin Pleven Veliko Turnovo Sofia Botevgrad Bourgas Plovdiv to Istanbul to Thessaloniki and Athens to Alexandroupolis to Ukraine, Georgia to Middle Asia#7Energy Secured energy supply – 3rd biggest - net exporter of electricity in Europe for 2022 (balancing systems in the neighboring countries) ➤ The country exports 33% of its domestic electricity consumption ➤ Diversified energy sources Projects for energy storage under planning and development 1.4 GW of new RES by the end of 2026 Project for biggest hydrogen valley in EU > Sustainable natural gas supply Li-ion Bulgaria has made a commitment to reduce carbon emissions by 40% by 2026 as part of the EU green transition#8Taxation rates CIT rates One of the lowest in the EU 10% Corporate income tax - flat 10% Personal income tax General VAT is 20 % Greece Slovakia EU Latvia Estonia Slovenia Poland Czech Republic Croatia Romania Lithuania Cyprus Bulgaria Hungary 0 ང་ོ 21 20,7 220 24 24 199 19 19 19 18 16 15 12,5 10 6 LO 5 10 15 20 20 25 30 30#9HEALTH & LIFE SCIENCE IN BULGARIA 圓#10€ Chemistry key figures Manufacture of chemicals and chemical products Manufacture of rubber and plastic products Manufactured production worth EUR 2 Bn 850+ Enterprises EUR 2,1 Bn Turonover 42,500 directly employed; about 100,000 additional jobs for indirectly employed persons#11Biotechnologies XXXXXXX XXXXX 128 medical centers engaged in research 11 000 students in the fields of healthcare, medicine, pharmacy and dentistry 1 400 students enrolled in Biotechnology and Biology programs > EUR 200 M turnover from clinical research Bulgaria is part of the initiative MEGA (The Million European Genomes Alliance) to give access to 1 million genomes in Europe by 2020. Bulgaria is one of the 14 countries in this alliance. The initiative aims to enable secure access to genomics and the corresponding clinical data across Europe for better research, personalized healthcare and health policy making.#12jomlo $ Healthcare The health sector in Bulgaria relies on experienced professionals (doctors, dental technicians, nurses, therapists, pharmacists, researchers) Internationally recognized medical doctors in various specialties such as heart disease, orthopaedics, oncology, dentistry and others Opportunity to build private medical centers to make use of the existing workforce, adequate legislation, manufacturing of medical supplies, devices and pharmaceuticals Established private health insurance funds#13Balneology Bulgaria has natural resources that offer perfect conditions for ALL-YEAR TOURISM Bulgaria has about 600 operating deposits of mineral water and 1 600 springs BULGARIA A DOCUIVERY TO SHARE Temperature (10° C - 103° C) with proven medicinal properties There are more than 65 balneological resorts Mineral waters are fit for human consumption Most resorts are located in mountainous regions of Bulgaria and provide fresh air and perfect conditions for recovery#14INSAIT Institute for Computer Science, Artificial Intelligence and Technology Education and innovation INSAIT the first world-class Al research and deep-tech institute in Eastern Europe Affiliated by... ETH Zürich EPFL World-call academic standards, industry support and scientist PhD students, researchers, deep-tech IP, start-ups creation, and exchanges Access to one of the world's strongest talent pools in the Al and computing in general: Eastern Europe 650 Start-ups & Scale-ups $100M initial government funding 63 Research centers and independent software schools $15M industry support Google vmware 20 Private software academies ܀ aws DeepMind#15Certification criteria Under the Investment Promotion Act (IPA) об 00 Success Bes Solution MUNICIPAL LEVEL OF UNEMPLOYMENT Vidin-Region center Lom Municipality Municipalities with an unemployment rate lover than the country's average Municipalities with an unemployment rate equal to or higher than the country's average (Art. 3, (8) RAIPA) Municipalities with an unemployment rate 25 % higher than the country's average (Art. 183. (1) CITA: Art. 3. 18) RAIPA) EMPLOYMENT ESTABLISHMENT Creating new working places is within the requirements for receiving certificate by the investor. ECONOMIC ACTIVITY The targeted sectors are defined by the State and high-tech, high-value- added projects are prioritized. LOCATION Locations with higher unemployment rates are prioritized and more incentiives could be provided by the State.#16i Government incentives Financial incentives > Financial support for training; ➤Social security cash back; Financial support for construction of the elements of the technical infrastructure; Acquisition of private-municipal or private- state owned land. Non-financial incentives Shortcut on administrative terms; Individual administrative and information support; Interdepartmental task force for institutional support; Establishment of public-private partnership with municipalities, universities and other organizations; Acquiring real estate (private state or private municipal property) without a tender or a competitive bidding procedure. Provision of Tailor-made Incentive package for Priority Investment Projects#17ALCOMET CREATING SUSTAINABLE FUTURE TOGETHER Investor's success is our mission Acronis ff Alcomet "...We were supported by InvestBulgaria Agency during the implementation of our investment program, with all possible financial and human resources." Life Is On by Schneider Electric" GE Schneider Electric Bulgaria Radoslav Koshkov Manager "...Schneider Electric has an excellent relationship with InvestBulgaria Agency since the time of our first investment in production, more than 20 years ago. We are successfully partnering with IBA in the mission to show advantages of Bulgaria as an investment destination." “ Acronis Stanislav Protassov Technology President and Co-founder "... The country has good traditions in IT and experienced specialists in the field of science computer and software engineering. Bulgaria is a unique place for Acronis, as this is where the company's main and largest R&D center is located." " Nestle ናና Nestle Petar Stoilov Member of the directors board ...Bulgaria has a huge potential to attract more strategic investors to develop and implement innovations with the support of the highly qualified Bulgarian specialists." PALFINGER Victor Karadjov Head of GBS Center "...Palfinger chose Sofia for its Global Business Service Center because of the accumulated knowledge in the field of business services and presence of established specialists in the industry."#18Why Bulgaria? 818 STABILITY □ EU, NATO & WTO member ☐ Currency board Low budget deficit and government debt EDUCATED AND SKILLED WORKFORCE 80 000 students 25% of population hold university degree 49.5% of population speak at least one foreign language EASY MARKET ACCESS European Union Turkey Middle East 1,3bn customers REDUCED COST AND RISK Attractive taxation system Competitive cost of labor Favorable office rents and low cost of utilities GOVERNMENT INCENTIVES Social security benefits Tax benefits Government grants#19InvestBulgaria Agency 23 Vrabcha Str., Sofia 1000, Bulgaria [email protected] +359 2 985-5500 www.investbg.government.bg THANK YOU! INVESTBULGARIA AGENCY