2016 ConTEnT Address of the Management Board Chimimport today History Supervisory Board and Management Board Chimimport Plc Main strategy and business model Financial sector Transport sector Trade and Production sector Real estate Engineering sector Independent Auditor’s Report Annual Consolidated Financial Statements Content 4 | 5 2016 Dear Ladies and Gentlemen, More than 70 years Chimimport Plc is one of the most successful Bulgarian companies. It started as a foreign trade enterprise specialized primarily in the trade with chemical products, today Chimimport Plc is distinguished as a major holding company, that consolidates over 70 successful in their scope of growth rate of the company. These companies are capturing leading and reputable positions amongst all their competitors in the respective sectors of the Bulgarian economy that they are specialized in: banking, insurance and pension insurance; aviation, river and sea transportation; exploration, extraction, processing and trading with petroleum and petroleum products and natural gas; origination, processing and trading with grain and oilseeds, production and trade with vegetable oils and biofuels. Each one of the over 6 700 employees of Chimimport Group contributes for the successful integration of the Bulgarian business standards with the strong and fundamental European ones. The last years proved to be successful for the affirmation of the company as one of the leading listed companies on the Bulgarian Stock Exchange - Sofia JSC, and our perception is that this position clearly reflects our proper investment planning and professional devotion and efforts of company’s management. As a public company, Chimimport strives to maintain a very high standard of corporate governance within both the parent company and its subsidiaries, including via guaranteeing equal treatment and protection of the rights of all shareholders. The common practice is the transparent and fair disclosure of information needed by current shareholders, stakeholders and potential investors our key goals and objectives for the upcoming years remain persistent – increase the growth rate of the company; strengthen the positions of the subsidiaries falling under company’s investment portfolio as market leaders not only on the domestic but also on the international markets; continuously improve the efficiency of the manufacturing companies through investment in new technologies and products; continuously improve and strengthen the image of Chimimport and its assets. From the Management Board of Chimimport Plc From the Management Board of Chimimport Plc 6 | 7 Chimimport today Chimimport is a company, founded back in 1947 and now possessing 70 years old history and traditions. Share capital BGn 239 646 thousand Equity (consolidated) BGn 1 341 990 thousand Assets (consolidated) BGn 8 184 488 thousand net profit (consolidated) BGn 52 008 thousand Executive directors Ivo Kamenov Marin Mitev Major Shareholder The Management of the company, which is represented by Invest Capital Plc – possessing 73.03% Distinctive minority shareholders of Chimimport are The Bank of new York Mellon – USA various, highly respected international companies and DSK Rodina Pension Funds – Bulgaria institutions such as: Eaton Vance Emerging Markets – USA nn Funds – Bulgaria Unicredit Bank - Austria Raiffeisen Bank International – Austria Blackrock Frontier Markets Fund – USA Eurizon Easy Fund – Luxembourg Russell Institutional Funds – USA Eurobank Ergasias Clients ACC – Greece BnYM AS AGT – USA CACEIS Bank Deutschland GmbH – Germany Flax Enterprise L.L.C. – USA Polunin Discovery Funds-Frontier Markets – Luxembourg Barclays Capital Securities Limited - UK Eaton Vance Structured Emerging Marketsf – USA over 270 legal entities and over 3600 private individuals. Chimimport today 8 | 9 HISTORY Main office of Chimimport PLC, Sofia, from 1947 year 2016 History capital of Armeec Insurance JSC; obtained the national importance for Varna city; majority share capital of pension fund CCB-Sila Through Port Balchik JSC, Chimimport Group PIJSC from the Czech financial group newton; has obtained a 25-year concession over port Through CCB, the group of Chimimport Plc terminal Balchik – a distinguished territorial THe beGInnInG takes over the companies of three banks that zone of Varna port for public transportation have been declared in insolvency: Dobrudzha with national importance; BASED on A REPoRT oF THE MInISTER oF CoMMERCE AnD VICTUALS ISSUED on MARCH 24TH, 1947, Commercial Bank JSC, Credit Bank JSC and Chimimport performs an increase of capital AT ITS MEETInG HELD on APRIL 4TH, 1947, THE CoUnCIL oF MInISTERS ESTABLISHES (wITH RESoLUTIon Bank for Agricultural Credit JSC; from EUR 60.8 million to EUR 66.5 million by no.7 – PRoToCoL no.50) A STATE-ownED CoMMERCIAL EnTERPRISE, nAMED CHIMIMPoRT wITH PRIME 2003 – Balkan Hemus Group JSC (currently Bulgarian Initial Public offering of 11.08 million shares oBJECTIVE – THE IMPoRT oF CHEMICAL PRoDUCTS. Airways Group JSC) was established with the with nominal value of EUR 0.51 and issue price purpose of unifying the future participation of of EUR 2.05. As a result and on the grounds of The evolution of Chimimport to EUR 26.14 million through a the group in the airline industry; Art.110, paragraph 2 of the Public offering of non-cash contribution by the state of Bulgaria; Successful participation with positive Securities Act, Chimimport Plc officially becomes a Public Listed Company. The 1947 – Import of basic chemicals, artificial fertilizers, 1993 – The state of Bulgaria transfers the outcome in the privatization process of Hemus company shares are registered for trade on the solutions for plant protection; shareholding of over 40 commercial and Air JSC and oil and Gas Exploration and official market, segment B, of the Bulgarian 1949 – Begins the import of medicaments, medical manufacturing enterprises in the possession of Production JSC; Stock Exchange - Sofia JSC on october 30th, specialties and instruments; newly established company called Consolid 2004 – Chimimport Plc establishes a sub-holding 2006. Chimimport Group has successfully 1950 – The exporting activities of the company Commerce. Company’s capital is increased to company called CCB Group Assets performed licensing procedures on two joint- begin – herbs, essential oils and raw materials EUR 26.42 million; Management JSC (currently CCB Group JSC) stock special purpose investment companies from cultivated plants; 1994 – On october 5th the Privatization Agency signs with main purpose to consolidate the group’s (CCB Real Estate Fund SPIC and Capital 1959 – SCE Chimimport merges with SCE Bulgarian a contract with the company’s management assets and interests in the banking, insurance Management SPIC, with scope of business in Rose. The export of rose oil begins; team at the time united under Chimimport and pension insurance sectors. Furthermore it securitization of real estates and securitization Invest JSC for the sale of 58.7% of the capital acquired the shares of Central Cooperative 1963 – The first re-export deal in company’s history of receivables, respectively. of Chimimport; Union in Central Cooperative Bank: 23.45% of takes place – selling calculated soda from 2007 – The Financial Supervision Commission issues a the Bank’s share capital. Belgium to Japan; 1995 – After finalizing the deal of selling preferred license to the CCB Assets Management Ltd – 1969 – Chimimport has in its nomenclature structure shares, the shareholders’ capital of the 2005 – The company establishes two sub-holding an assets management company; approved 70 export positions and 41 import company is apportioned as following: structures – Bulgarian Shipping Company JSC Chimimport Plc acquired 51.81% of the share stock groups; Chimimport – 63.01%; private individuals – for river and marine transport and Chimimport capital of Ship Machine Building JSC, Varna; Group JSC for commercial and production 1977 – ECE Chimimport is established as a result of 15.70%; Consolid Commerce Ltd – 20.05%; on the grounds of a resolution, issued by the activities; Chimimport’s share capital increases the merger between SCE Chimimport, ECE other legal entities – 1.26%; Board of Directors of Bulgarian Stock to EUR 30.68 million; neftochim and ECE Lesoimpex. Company’s 1997 – Chimimport is re-registered under Art. 277 of Exchange - Sofia JSC, Chimimport Plc is Chimimport acquired 49.28% of the third in prime field of expertise and scope of business the Commerce Law as a holding company; included in the main market index SoFIX and terms of assets and market share pension is import, export and re-export of chemicals, Chimimport is re-registered under Art. 277 of as of February 26th, 2007 the company is insurance company in Bulgaria – Pension chemical raw materials, natural gas, the Commerce Law as a holding company; included in the market index BG 40. Insurance Company Saglasie JSC. nearly 50% petroleum, petroleum chemical products, Central Cooperative Bank Plc acquired the 2000 – The first stage from the restructuring process of the shares have been sold in 2013 with cellulose and paper; insolvent enterprise International Bank for of Chimimport is finalized – establishing realization of significant income return; 1981 – The export product list consists of over 125 Commerce and Development; subsidiaries based on the former commercial Chimimport Group acquired through Central different positions; departments; Chimimport won the tender procedure for Cooperative Bank, the filed for insolvency