InvestBulgaria Agency

March  InvestBulgaria Agency 2021  Interview Edition 29, year 9  Investment opportunities for the municipality  Chambers of commerce in  Interview  Economic news Online edition  Upcoming events

INVESTBULGARIA AGENCY

“NESTLE BULGARIA” AD IS “INVESTOR OF THE YEAR” 2020

For the fifteenth anniversary, the InvestBulgaria Agency (IBA) presented the awards for investments during the "Investor of the Year" 2020 ceremony and awarded the most significant projects implemented last year in Bulgaria. The official event was held online on March 2, 2021. The event was attended by the Deputy Prime Minister Mr. Tomislav Donchev and the Deputy Prime Minister and Minister of Tourism Mrs. Mariana Nikolova.

"In these difficult times caused by the COVID pandemic, there must be a ray of hope for a better future and, despite the challenges, to come out more united than ever. Investments are one of the first conditions and criteria for economic growth and development in the country. We are aware of how important it is for reliable and stable investors to prefer our country for their business, to stay, but also to be an example of good practices for creating new jobs, for showing social responsibility, professional experience and high values. Thank you for choosing Bulgaria for your investment. " With these words the Executive Director of the Bulgarian Investment Agency Desislava Trifonova welcomed the participants and opened the official ceremony.

Over 60 applications were received from companies in all areas of the economy, automotive, information technology and healthcare, sent by district administrations, municipalities and others. As every year so far, the selection was entrusted to a competent jury, which managed to select the winners from among the nominated companies that implemented investment projects in 2020.

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A statuette "Golden Bull", made by the sculptor Seyfetin Shekerov, and a diploma were awarded to the winners of the competition "Investor of the Year" 2020.

AWARDS

I. Statuette "Golden Bull", made by the sculptor Seyfetin Shekerov, and Diploma.

Mr. Tomislav Donchev, Deputy Prime Minister, presented the Grand Prize for Investor of the Year 2020 to Mr. Petar Stoilov, Executive Director of Nestle Bulgaria AD. The company produces products for over 35 markets worldwide, has invested BGN 23 million in a new robotic packaging production line to digitize the production process and to expand the portfolio of manufactured products, meeting consumer preferences for a balanced diet. The investment will ensure the competitiveness of the products worldwide. With this investment, the company successfully continues its path to automation and digitalization of production, which allows remote control of the processes. The company has been on the Bulgarian market since 1994.

This year, for the first time, an award for "Sustainable Investment Development" was presented, which was won by Şişecam Industrial Group, which made its first investments in Bulgaria in 1997. Over the years, they opened a number of productions in our country for flat, household and automotive glass. The Group operates through its plants Trakia Glass Bulgaria EAD, Şişecam Automotive Bulgaria EAD and Pashabahce Bulgaria EAD. The total investment made in the country reaches 800 million dollars. Mrs. Mariana Nikolova, Deputy Prime Minister and Minister of Tourism, presented the award to the Chief Executive Officer of Shishedjam Industrial Group, Prof. Dr. Ahmet Kerman.

The winner in the category "Green Investment" is "Samel 90" AD - the company has invested BGN 5 million and will create 250 jobs with the construction of a complex located at the foot of Rila, at 960 m above the sea level, on the outskirts of Samokov town and near the river Iskar, 10 km away from the ski resort Borovets. The project creates modern conditions for sports and recreation, combined with the modern idea of a comfortable living environment. The main idea of the investor is to unite areas and buildings with different functions into a single whole, without compromising the sense of living in a park environment. Mr. Stamen Yanev, Deputy Minister of Economy, announced the winner - Eng. Petar Georgiev - Executive Director of Samelion AD and Samel 90 AD.

The award in the category "Investment in business expansion" was won by M + S HYDRAULIC AD. The company annually invests from 7 to 10% of its turnover in machinery and equipment, and for the last 10 years the value of the investments is over BGN 89 million. During the controversial for the whole humanity 2020 year, the company expanded in the town of Kazanlak, completing and putting into operation a new production building on two floors, built a Training and Research Center and purchased machinery and equipment, with a total investment of BGN 21 million and created 150 jobs. Mr. Stamen Yanev announced that the award was won by Mr. Marin Marinov, Director of Finance and Administration.

The winner in the category "Investment in human capital" is MD Electronic EOOD. The company has hired 200 employees and will hire another 250 in 2021. The investments are for over BGN 21 million, and their products are integrated in more than 200 car models of over 40

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manufacturers such as Volkswagen, Audi, Skoda, BMW, Jaguar, Land Rover and others. Ms. Yana Topalova, Deputy Minister of Economy, announced that the award will be given to Ms. Miroslava Milanova - Director of Human Resources, MD Electronic EOOD.

In the category "Investment in innovative business" the Golden Bull was won by the company "Robert Bosch" EOOD. The company has invested in innovations, has built an Engineering Center in Sofia. It is the world's leading provider of technology and services and aims to become a leading global IT and software provider for automakers. The center in Sofia works closely with development teams in Germany, the United States, Hungary and Romania. The team of highly qualified professionals is involved in the development of over 40 innovative projects and technologies for the automotive industry in areas such as driver assistance systems, automated driving, artificial intelligence and electric mobility. The mission of the investor's team is to ensure safe driving with care for the environment and society. Ms. Yana Topalova, Deputy Minister of Economy, announced the winner - Mr. Konstantin Konov, Managing Director of Bosch Engineering Center Sofia.

II. The following companies and municipalities received crystal plaques of the InvestBulgaria Agency:

The first crystal plaque is for "Successful Startup" in 2020. The winner is the Association "Children with Oncohematological Diseases", which is the first and only Rehabilitation Center for children with oncohematological diseases in Bulgaria and the Balkans and one of the few such centers in the world. It is located in the village of Opitsvet, Kostinbrod municipality, and it has seven detached houses, an administrative building with halls for dining and entertainment, a swimming pool and a place for solitude. The investment is worth BGN 3.7 million with over 20 jobs. Mrs. Yana Topalova, Deputy Minister of Economy, announced that the award was given to Mr. Plamen Belchev, manager of the branch of the association.

The next prize is for the category "Municipality with the most investments". The winner is the Municipality of Varna, as its award was given for over BGN 90 million invested in educational infrastructure in 2020, as the increase compared to 2019 is BGN 10 million, despite the crisis, as well as for the work and activities on construction of a new Industrial Zone - a key project for the industrial and high-tech future of the region. Mr. Stamen Yanev, Deputy Minister of Economy, announced the winner - Mr. Ivan Portnih, Mayor of Varna.

In the category of Municipality "Best Partner for 2020" the winner is the Municipality of Burgas. In 2020 IBA met exceptional support in working with the municipality in the process of attracting new investors in the region. This has led to a large number of applications for certification of investment projects. As of January 2021 alone, three projects worth a total of BGN 40 million have been certified, with 380 new jobs announced.

Mr. Stamen Yanev, Deputy Minister of Economy, announced the winner - Mayor Mr. Dimitar Nikolov.

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The winner in the category "Innovative Product of the Year" is Nasekomo AD. Using the principles of the circular economy and zero-waste production, the company produces innovative, high-quality and sustainable insect products used in the feed and agricultural industries. The company breeds the Black Soldier fly for the conversion of plant waste into biomass, which is then transformed into an alternative protein used for animal and fish feed. The products that the company currently produces are insect proteins and fats for inclusion in animal feed, as well as organic fertilizer for agricultural use. Ms. Yana Topalova, Deputy Minister of Economy, announced the winner - Ms. Yana Balnikova, Program Director at Nasekomo AD.

Ms. Venelina Gocheva, publisher of the newspaper "24 Chasa" announced that "Dundee Precious Metals" wins the traditional award of the newspaper for "Social Investment". The prize was awarded to Mr. Iliya Garkov, Vice President of Dundee Precious Metals.

The main media partners of Investor of the Year 2020 are “24 Chasa“newspaper, Investor.bg and Bloomberg TV Bulgaria.

“INTERVIEW” SERIES

Interview with Ivan Portnih, Mayor of Varna Municipality

Ivan Portnich was born in 1976. He graduated in "International Economic Relations" at the University of National and World Economy, with a master's degree in "Business Administration" from the Institut de la Francophonie pour l` Administration et la Gestion. Since June 2013 he has been the mayor of Varna

Municipality. He speaks French, English and Russian. Married, with two children.

- Varna won the award of the InvestBulgaria Agency in the competition "Investor of the Year 2020" in the category "Municipality with the most investment" in educational infrastructure. How did you stand out from the competition ?

- Thank you for the award, which is an assessment of the efforts we are making with my team in the field of education. We have created the platform Varna - City of Knowledge, which aims at long- term development of the sea capital and transformation of the economic profile of the city through digital, innovative and green solutions. It combines the efforts of local government, business, education and science sector to realize the full potential of the city. Last year we invested over BGN

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90 million to create better conditions for the education of young people. This is an increase of funds compared to 2019 by BGN 10 million despite the crisis.

In 2021, education is again the most important priority for us. The macro framework of the budget function is nearly BGN 165 million, which is BGN 30.8 million more than last year. BGN 32 million have been provided by the government, with which we will implement the construction of 12 new buildings and outbuildings of kindergartens, nurseries and schools. It is also a fact that the salaries of the pedagogical staff in schools and kindergartens increase by an average of 15%.

- What are the real results of the Varna - City of Knowledge platform?

- An important goal for us is to attract high-tech industries. In the last two years, global companies have chosen Varna as a place for development - Coca Cola has opened a new center for financial services, providing employment to about 800 young economists, and the Belgian banking group KBC has opened its center, relying on students from the University of Economics. The steady trend continues today despite the crisis. A few days ago, the largest European software company SAP Bulgaria entered Varna with new projects. The opening of the SAP Academy at the University of Economics is forthcoming, building an integrated information system at VVMU "Nikola Vaptsarov", mutual working with the Technical University. According to information provided by the company, the academy at the University of Economics will allow students to become members of SAP Next-Gen Labs, where they will be able to freely exchange ideas and connect with companies in which they could get a job, to establish connection with startups, accelerators and investors from all over the world. This means there will be new opportunities for the city's youth community, job creation and business development.

- At what stage is the creation of the Industrial Zone Varna ?

- This project is closely related to the platform Varna - City of Knowledge, because we rely on the six universities, which annually generate many prepared young people for the job market. We will attract high-tech productions in the Industrial Zone, so educated staff will be needed. The area is located on a plot of over 10,000 decares between Varna Airport, Aksakovo, Ignatievo and the village of Slanchevo, which makes it the largest in the country. The territory is laid down in the General Development Plan of the Municipality of Aksakovo, currently a final coordination is being carried out with the Expert National Council at the Ministry of Regional Development and Public Works. The location meets the highest standards for business, as it provides excellent transport opportunities - proximity to the "Hemus" highway, to the airport, to the port complexes - Varna- West and Varna-East, as well as to the Ferry complex in Beloslav. The main water pipelines Devnya- Varna, Kitka-Varna, as well as a high-voltage transmission line and a gas supply pipeline pass through the zone. The last technical details of the project for a new road junction are currently being carried out which will provide access from the Hemus highway to the city of Ignatievo and the business zones in Varna..

- What new projects do you plan in Varna ?

- Financial stability is needed for development. Varna has one, which was also confirmed by the international rating agency Standard & Poor’s. The survey was conducted during the extraordinary conditions when the agency confirmed the credit rating of Varna - long-term credit rating: / BBB / with a perspective: stable; short-term credit rating: / A-3 / with outlook: stable. The analysis of стр. 5 от 20 InvestBulgaria Agency (IBA), Vrabcha str. 23, Sofia 1000 Tel.: (+359 2) 985-5500; Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg

BACR clearly showed the stable positive financial development of the municipality of Varna. This is the foundation on which we stand in the implementation of city development policies and which gives us confidence to implement bold projects.

An example of this is a project that eases the traffic, ensures a fast transport link to the Industrial Zone where 20,000 new jobs are to be created and at the same time brings concrete environmental benefits - improving air quality. For this purpose, the expansion of one of the key boulevards - Tsar Osvoboditel Blvd. to the airport, and the construction of an electric city railway, the so-called light subway.

We are ready with the feasibility studies which describe 5 stages for the development of high-speed ecological transport with a total length of 62.2 km. The priority of the EU and the programs that are currently opening for the next period is to stimulate new ecological systems for urban transport. Our project is fully compliant with these requirements which will allow us to apply for European funds for the construction of light rail.

Of course, the projects for the construction of the Hemus and Cherno More highways, on which Boyko Borissov's government is actively working, continue to be important for Varna and Northeastern Bulgaria. This means developing and opening new business opportunities for the whole region.

With money from the state, the largest landslide in the region of Varna - "Trifon Zarezan" is to be strengthened and for this purpose an agreement is to be concluded between Road Infrastructue Agency and the Municipality of Varna. The project envisages the construction of a bridge facility and the restoration of the panoramic road Varna - Golden Sands, which will ease the traffic on the current highway and will facilitate the access to resorts north of Varna. The new infrastructure will be of great benefit to the tourism industry.

- The Municipality of Varna has good traditions in working with European funds. What is the balance sheet for the past programming period ?

- Active work with European funds is an important priority for us. During the past programming period 2014-2020 we have invested in Varna over BGN 570 million - for the development of the urban environment, for educational, social, sports infrastructure. It is immodest to give ourselves high marks, so I will refer to the analysis of the Institute for Market Economics, which at the beginning of this year in its research announced that Varna is considered to be the main economic center of Northern Bulgaria with a strong industry, a large share of tourism and a fast-paced sector in the field of information and communication technologies. The data is from the study "Regional Economies of Northern Bulgaria: Status and Prospects". According to the study, as of 2019, Varna contributes BGN 7.689 billion to the gross domestic product (GDP). In other words Varna generates a GDP equal to the economies of Ruse, Veliko Tarnovo and Pleven combined.

An important conclusion from the study is also the fact that Varna is fighting for the second position in the ICT sector. The latest examples of the attractiveness of our city for the IT industry is the opening of an office of the largest software company in our country – Рауѕаfe, as well as the new projects in Varna of SAP Bulgaria. Considering the attractive destinations of Varna Airport to all of Europe, the amenities for young families related to guaranteed places in kindergartens, the

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opportunities for additional qualification in the universities, the development of the tourism sector, I believe that Varna will become an increasingly attractive place to live and work.

TODAY WE PRESENT:

Stara Zagora Municipality

City of , 107 Tsar Simeon Veliki Blvd. www.starazagora.bg e-mail: [email protected] Tel: +359 42 614 614

"The perspective of Stara Zagora must be given today so that tomorrow we can be prepared for what lies ahead. We work so that Stara Zagora is modern - with developed infrastructure, with opportunities for doing business, with a rich culture and developed sports activities. We have a developing and dynamic city, dedicated to education and at the same time calm and orderly. This happens thanks to the good cooperation between the municipality, the state and the business - this gives a perspective and for all of us it is important that people have opportunities for development. Currently, a task of great importance for the region is the so-called green deal - the transformation from coal energy to another type of economy. The region needs well-paid jobs to keep young people here and business needs preconditions for development. In 2020, the Zagore Industrial Zone was fully built. There are signed contracts with two investors and negotiations are currently underway with four more companies - 2 national and 2 foreign. The creation of the Zone became possible thanks to a collaboration between the Municipality of Stara Zagora and the state. Its implementation plays a key role in the sustainable development of the whole region. The total area of the Zone in the first stage of its construction is 115 thousand square meters and it is of a new type - with full infrastructure: gas, electricity, roads, it has everything. Negotiations are underway to expand IZ Zagore.

City of the future

Stara Zagora is one of the most ancient cities in Europe, combining its thousand- year history in a modern way. Today it is a beautiful and dynamically developing industrial city, a university center with many scientific and cultural institutes. A

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city with a dignified past, facing the challenges of the future. A city of poets and artists, straight streets and linden trees. Four Pan-European transport corridors cross the city: №8, №4, №9 и №10 and together with the possibility to quickly and conveniently reach several airports: Plovdiv (90 km), Bourgas (180 km) and Sofia (250 km) and ports such as Bourgas, Ruse and Alexandroupolis define the region as an important strategic center in Europe and the Balkans. The central location of the municipality, the flat terrain, the transitional-continental climate, combined with well-built and maintained road and railway infrastructure favor the development of the municipality of Stara Zagora and the whole region as competitive and attractive to investors.

The economy is booming

Stara Zagora is a very well economically developed city, which ranks second in the country after the capital in terms of GDP produced per capita. In 2020, the city received a good rating from the international rating agency Standard & Poor’s, reaffirming the long-term rating BBB-. The outlook remains stable thanks to the leadership of the Municipality to maintain a responsible financial policy despite lower revenues due to the COVID-19 pandemic. The economy of Stara Zagora is among the leaders in terms of value of production and attracts a relatively large volume of investments, which increased by 4.6% compared to 2018. Good labor market conditions combined with good living conditions, including access to quality health and educational services and infrastructure make the city attractive for young people and families with children. Local taxes and fees are among the lowest in Bulgaria, which creates favorable conditions for business development and attracting new investments from the country and abroad. The average rate of tax on non-residential property of legal entities is the lowest among the regional cities in the country. Leading companies at national and European level in the field of mechanical engineering, electronics; food industry, woodworking, textiles, automotive; construction works operate in Stara Zagora .

Upgraded infrastructure

The Municipality of Stara Zagora works effectively to attract funds from European funds to improve the urban environment and quality of life, to create educated and qualified workforce, to create good conditions for local business development and to attract foreign investors.

Investors support

An Investment Department has been established in the municipal administration whose role is to act as an ambassador of the municipality and the district in case of possible investment interests and to assist potential investors. The Investment Department actively participates in the development of Stara Zagora and the region, in its transformation into a modern, innovative, intelligent and green city, стр. 8 от 20 InvestBulgaria Agency (IBA), Vrabcha str. 23, Sofia 1000 Tel.: (+359 2) 985-5500; Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg

attractive for young people and for business development, building the city and the region as attractive for highly efficient industry, for entrepreneurial projects by bulgarian and foreign organizations. The new structure provides to potential investors an individual and fast service and improves the attitude of investors to the opportunities for business development in Stara Zagora and the region. The Investment Department offers assistance to investors in the development of their projects, support for their management at the pre-investment stage, providing information on incentives for foreign direct investment, funds from EU funds, vacant land in industrial areas, a network of contacts and rich set of information. Investors can benefit from legal advice, macroeconomic data and information, links with key business partners and the organization of on- site visits.

Education

There are 42 schools, 10 nurseries and 27 kindergartens in the Municipality of Stara Zagora. All nurseries and almost all kindergartens and schools have been renovated. In 2021, the construction of a new kindergarten in the city center is planned, as well as the reconstruction and renovation of the existing building of the first primary school, which will house the newly established Vocational School of Computer Science and Mathematical Analysis.

On the territory of the Municipality of Stara Zagora there are six secondary schools with technical and IT orientation. The total number of students enrolled in these six schools is 2000. The average number of students who graduated from technical education in 2020 is 300. Thracian University is located in Stara Zagora.

“INDUSTRIAL ZONE ZAGORE” AD is a result of the joint initiative of the Municipality of Stara Zagora and the Ministry of Economy of the Republic of Bulgaria. The area offers first-class properties for development in one of the most dynamic cities in the country.

The territory of "INDUSTRIAL ZONE ZAGORE" AD has a very good location - within the city limits with quick and convenient access to major state roads and the adjacent "Trakia" highway (about 10 km). The total area of the Zone, at the first stage of its construction, is 115,000 square meters, and currently 50,000 square meters have been sold and about 65,000 square meters are available.

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The second stage of construction of the area with more than 400,000 square meters is forthcoming. All plots are offered with built technical infrastructure and communications on the basis of an approved detailed development plan (DDP). Zagore Industrial Zone offers to its future investors all communications to the chosen plot, namely electricity, water supply, sewerage, gas, telecommunications. The area also has a fully developed infrastructure for industrial purposes - streets, sidewalks, street lighting, parking for trucks and public transport stops to be used by our investors and their future workers to facilitate their work and movement. The plots could be divided or merged depending on the needs of the specific investor. When investing in a property in the area, given the fully completed infrastructure, the investor can immediately begin implementation of its project..

Look to the future

In 2020, the European Commission published its National Report for Bulgaria, which states that the Stara Zagora region will be significantly affected by the forthcoming closure of power plants and coal mines in the context of the Green Deal and future EU policy to reduce climate changes. To address these transition challenges the European Commission identifies high-priority investment needs to diversify and modernize the regional economy and increase its competitiveness, as well as to mitigate the socio-economic consequences of the transition.. Bulgaria can count on 1.2 billion euros from the Fair Transition Fund, most of which will be set aside for the Maritsa Basin region. The main guidelines identified by the European Commission for the development of the region are related to the support of:  Productive investment in SMEs, including start-ups leading to economic diversification and restructuring;  Investments in research and innovation activities and promoting the transfer of modern technologies;  Investments in digitalization;  The introduction of technologies for affordable clean energy;  Restoration and decontamination of sites, land rehabilitation and redevelopment projects;  Strengthening the circular economy;  Improving the qualification and retraining of workers;  Assistance in job search for job seekers  Ensuring the active participation of job seekers. Unlike other Bulgarian districts affected by the transition, Stara Zagora District faces a more serious challenge related to job losses, which can hardly be fully offset by the creation and development of SMEs. Therefore, the territorial plan for a fair transition will allow support for productive investments in large enterprises. The management of Zagore Industrial Zone has already taken the necessary steps to join significant new territories to the current assets of the zone. In addition to the plots plotted for the construction of the second stage, the terrains of the former airport with a total area of over 2000 decares in the scope of the public transport of Stara Zagora and in the immediate vicinity of the Trakia Motorway are also envisaged. The past 12 months have put the world's social and economic systems under enormous stress and will be an important catalyst for long-delayed fundamental reforms in the management of production lines and the active participation of companies in the fight against climate change.

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The shortening of production lines, the Fair Transition Fund and the European Green Deal will put the Stara Zagora region at the epicenter of changes in Eastern Europe. We believe that through the already built modern infrastructure and expansion plans we will offer the necessary conditions for welcoming innovative companies to help transform the region into a modern center of industry and technology. The expected release of skilled labor and the huge financial resources to support private initiatives give the region a serious competitive advantage in terms of attracting high value-added investments.

The volatile macroeconomic indicators and uncertainty about the opening of economies and the return to normalcy will continue to be a challenge in making strategic investment decisions, but in the last months there has been a clear growth trend in industrial activity, which makes us to look optimistically towards the second half of 2021.

CHAMBER OF COMMERCE BRITISH BULGARIAN BUSINESS ASSOCIATION (BBBA)

Sofia, 1124 23 Mizia str., 1st fl. www.bbba.bg E-MAIL: [email protected] Tel: +359 24952227

The British Bulgarian Business Association (BBBA) is a dynamic professional network representing more than 230 British, Bulgarian and global companies. Founded 6 years ago with the support of the British Ambassador in Bulgaria, BBBA works in partnership with the British Embassy in Sofia and the Bulgarian Embassy in London to provide a secure and stable environment for trade relations between the two countries. As members of the Association of British Chambers, we actively help to develop links between the bulgarian business and representatives of companies from all major business regions in the UK. We do this by organizing delegations and participating in trade events, and in the last year through online opportunities to meet companies between Bulgaria and regions such as Edinburgh, Glasgow, Manchester and many others. We also offer individually prepared projects to reach end business clients and partners. In Bulgaria BBBA works with the group of bilateral chambers of commerce and the InvestBulgaria Agency to promote the country among foreign investors. Last year we held together the first event of its kind, aimed at foreign investors, in order to establish the image of Bulgaria as a preferred niershoring destination. With the help of its members - highly qualified consultants, logistics companies and legal professionals, the British Bulgarian Business Association provides support for companies wishing to

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trade between the UK and Bulgaria after Brexit at the end of last year. In addition to private meetings, we also organize seminars and conferences to facilitate the processes between the two countries. The association welcomes new members who would help strengthen the business relations between Bulgaria and the United Kingdom through their activities, services or products. At the links below you can find recordings of previous events organized by the BBBA: ● Doing business in the UK After Brexit ● In conversation with HMA Dr. Rob Dixon ● Business is GREAT- British Success Stories in Bulgaria More information about BBBA can be found at bbba.bg

“INTERVIEW” SERIES Interview with Mr. Petar Stoilov, Executive Director of Nestle Bulgaria AD

Petar Stoilov joined Nestle Bulgaria in 2001 as Business Manager of Nestle Professional. His valuable sales experience and excellent business understanding allow him to establish and develop a business for consumption outside the home. In December 2010, Mr. Stoilov took over the role of National Sales Manager for Serbia where he built a good foundation for the future development of the business. In 2013, he was appointed to the position of Purina Business Manager for Bulgaria and the South Adriatic, remaining based in Sofia. Since 2015, he has expanded his responsibilities to take over Croatia, Slovenia, Bosnia and Herzegovina, and two years later to take over Romania. Since November 1, 2019, Petar Stoilov is the CEO of Nestle Bulgaria. He has a higher technical education and is a father of four children.

In March this year Nestle Bulgaria AD received the "Investor of the Year" award 2020. Will you tell us more about the investment in our country? Was 2020 a successful year for your company?

2020 was an unprecedented year. A year in which everyone faced a number of challenges, one of which was rapid adaptation. Caring for our people and their health has always been our first priority, and in 2020 we all appreciated even more how crucial this is for us as individuals and for business as a whole. Thus, we remained true to the foundation of our company and prioritized the security and safety of our employees and partners at an even higher level.

For us, this is a year in which we have passed successfully, we have achieved our main annual goals, although we have noted a symbolic slight decline in organic sales of -1.1%. Nestlé's sustainable business model, according to which we create value for the Company (2), shareholders (1) and people, allowed us to get through the situation with considerable ease in a very organized way, given the complex business situation and the challenges, in which the pandemic put us all. One of our advantages and main strength is the richness of our portfolio. We in Bulgaria operate in 7 categories and have some of the strongest and most recognizable brands in the international aspect and on

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our market. We noticed how in the new situation consumers demonstrated a demand for established products with a quality guarantee.

Regarding the Investor of the Year 2020 award, for us it was a high recognition which awarded the company for the investment worth BGN 23 million in a very challenging year. The investment is made in an innovative project which consists of several components and is aimed at automation and digitalization of production facilities at the chocolate factory of Nestle in Sofia and expanding the product portfolio. This includes a new robotic packaging assembly line, which increases factory productivity by 11%. It provides a safer working environment as it allows the elimination of most manual activities, reduces defects in product packaging and ensures a better appearance of unpackaged and packaged product, which is part of our commitment to nature, and zero negative imprint with our activities to it. With this investment Nestlé successfully continues its path to automation and digitalization of production processes, as the line also allows remote control.

What is the amount of investments that Nestle Bulgaria AD has made so far and the total number of jobs created ?

For 27 years in Bulgaria, Nestlé has shown that our mission "food to be the basis of a better future" - for the people, society and nature around us can be a reality and we are strongly committed to continue on this path in the future. That is why the company does not stop investing both in the factory in Sofia and in human capital, as from 1994 to the end of 2020 the average investments we have made in Bulgaria are an average of BGN 9.2 million per year, of which over 70% are in Sofia Factory. The accumulated Nestle investments are approximately BGN 250 million for 27 years of sustainable business in Bulgaria. Last year, the main share of investments was directed to Factory Sofia, but we also continued to provide resources to ensure safe working conditions, additional remuneration for our people working on the first line, as well as our continuous investments to improve our employees skills. Of course, we have remained true to our social responsibilities to society, individuals and the planet. Despite the situation, we continued to invest in young people, providing a number of activities to enhance their practical skills needed to start a career, we continued to inspire society to lead an active life through physical events, implemented in all security measures, and year-round digital campaign. We have also fulfilled our commitment to nature by continuing to reduce the amount of water used in the Sofia Factory, reducing carbon emissions and continuing not to dispose waste in landfills. All this makes us feel confident that together we can achieve more in the current year. Nestle Bulgaria is an expert leader in the production of products, part of the balanced menu of the people, thanks to the efforts and dedicated work of about 1000 employees, who every day prove with their skills and knowledge that together we can make a positive difference for society.

In your opinion, how does the Republic of Bulgaria attract foreign investors ?

The Bulgarian market has a number of advantages, including an educated and technically literate workforce. We are in a strategic position on the Balkan Peninsula - a good geographical location, which has historically proven to be our undisputed advantage in many aspects. Bulgaria is a country with attractive tax rates compared to a number of European countries, which is of particular importance for business and people. The general business environment is favorable and our climate is very suitable for agriculture, which allows us to buy directly from Bulgarian producers the main raw material for our local production such as flour.

How does the current COVID-19 crisis situation affect you ? What measures did you have to take?

The situation in 2020 has faced a number of challenges. For us, people are at the heart of our business and that is why the health and safety of our employees, business partners and the communities in which we work are a priority. First we had to reorganize our way of working in a short time - we implemented the

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remote model of work in a few days. Our employees and systems proved to be prepared and we were able to easily cope with this significant change. For our employees on the first line, who could not be provided with the opportunity to work in isolation, we imposed a number of new safety measures both for access to our office and factory, and ensuring safety that meets the requirements of the new situation. We also managed to cope with the new working conditions for the export and import of goods, raw materials, packaging and materials. Good organization and the availability of green food corridors at the borders have in fact ensured fast and timely deliveries of basic foodstuffs. Last but not least, ensuring the operational business model and preserving jobs were leading in adapting to the pandemic.

Also, in order to provide security for our employees, we invested nearly BGN 900,000, we helped as well first-line medical workers and other vulnerable social groups in need with over 190,000 servings of food and coffee drinks. This year we continue to work with key organizations such as food banks and hospitals to lend a hand to those in need and to help people on the front lines who have been working in emergencies for more than a year.

How do you envisage the recovery after the pandemic in your industry ?

For a company like Nestle, which has a wide portfolio in various food and beverage product groups, the situation was not as serious as in other sectors severely affected by the changed pandemic environment, such as hotels, restaurants and transport. We envisage a gradual transition back to a work environment that will allow more employees to return to the office. We have a plan to restore the affected categories such as impulse products and products for consumption outside the home. We believe that 2021 will not be significantly different from 2020 and we are prepared to react quickly to the changing situation.

What are your goals for 2021 ? Do you plan new investments in Bulgaria ?

For 2021, the main priority for us remains health and safety at the workplace, which will allow us to continue to implement our business plan in a responsible manner. We have a strong plan and we started the year successfully - the first quarter showed that the experience of 2020 helps us and we are confident in achieving our business goals for the year.

Our investment plan for 2021 is just as ambitious as the one in 2020. We plan to make an investment of a total of BGN 22 million again, which is mostly focused on the Sofia factory. This investment reflects the strategic role of our factory and includes the expansion and automation of production, as well as the construction of production capacity for new products. We will continue to invest in information technology as well as in new projects related to the head office, distribution center and vending machines for coffee.

ECONOMIC NEWS MINISTER BORISOV: BULGARIA IS A PROSPECTIVE DESTINATION FOR CLOSE PLANNING, AIMING TO MOVE BUSINESS OF COMPANIES SEEKING REDUCTION OF SUPPLY CHAINS Bulgaria has achieved a high level of new investment, both foreign and domestic, despite the international crisis in the last year. We continue to register a constantly growing interest from potential investors and for the past year alone we have certified projects under the IPA for over BGN 1 billion. This was stated by the Minister of Economy Lachezar Borisov, who

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opened the International Video Conference "Bulgaria - the new top nearshoring destination". The event is organized by the InvestBulgaria Agency / IBA / and fifteen Bilateral Chambers of Commerce and Industry under the auspices of the Ministry of Economy to present Bulgaria as a new "nearshorning" destination worldwide.

Borissov pointed out that the latest surveys of employers and partner business organizations show that 95 percent of foreign companies that have already made investments in Bulgaria are ready to expand their business. "The pandemic is causing some slowdown in investment processes internationally, but here we maintain a positive trend of interest in investment opportunities".

According to him, Bulgaria has the most liberal measures regarding business during the pandemic, thus preserving one of the factors of economic growth - consumption. Minister Borissov added that Bulgaria is at the forefront of macroeconomic and financial stability in the European Union, based on the government debt ratio relative to GDP. Our country ranks first in credit ratings in the Balkans. "One of the most important factors for attractiveness is maintaining the lowest tax rates and operating costs in the EU and the good qualifications of the staff are highly valued by foreign investors. All this outlines our country as a promising destination for close planning, aimed at relocating the business for companies seeking to shorten supply chains. Our admission to ERM II in 2020 is another proof that we will remain on the map of investment processes".

The Minister of Economy stated that in recent years we have increased investment for technological development in productions and services with high added value and the creation of new high-productivity jobs. "Nearshoring is becoming more attractive and the current pandemic situation shows that there are many benefits to reducing supply chains and investing in countries with a close time zone, easier access and all the benefits of the common European market.".

He stressed that Bulgaria is very seriously positioned on the map of countries that have potential for development of the automotive industry. "More than 270 companies operate here, producing components and systems for leading international car brands. Our country is becoming a preferred destination for establishing companies or opening outsourcing centers of leading companies in the field of high technology. The information and communication technology (ICT) sector is also one of the main contributors to the growth of gross value added in the economy”.

The Minister of Economy also pointed out that our country offers many investment incentives, as well as reforming vocational education and training and interaction between universities and business. "The adoption of a new Law on Industrial Parks is underway, the aim of which is to create an opportunity to build modern industrial zones with all the necessary infrastructure for investors in a short time. We are also developing technology parks for high-tech production and innovation ".

The Conference was also attended by Deputy Minister of Economy Stamen Yanev, Executive Director of IBA Desislava Trifonova, the Ministry of Trade and Economic Affairs, as well as business representatives from the Bilateral Chambers of Commerce and Industry. During the event, successful examples of foreign companies in our country were presented. 29.01.2021

Source: Ministry of Economy

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THE GOVERNMENT HAS ADOPTED A PROCEDURE FOR SELECTION OF PROJECT PROPOSALS FOR ESTABLISHMENT OF EUROPEAN DIGITAL INNOVATION HUBS IN BULGARIA

The Council of Ministers adopted rules for conducting the national procedure for selection of project proposals for the establishment of European Digital Innovation Hubs (EDIH) in Bulgaria. The construction of the ECIH supports the digital transformation of the European Union countries by investing in key areas such as artificial intelligence, high-performance computing, cybersecurity, advanced digital skills, digitalisation of public administration and interoperability. The role of future European digital innovation hubs is to provide businesses and local administrations with innovative digital solutions and their integration into their day-to-day operations. Digital innovation hubs should offer the opportunity to experiment and test new technologies according to the specific needs and activities of each company or institution in the public sector. Package of application documents: 1. Guidelines for application - National selection for selection of the EDIH, program "Digital Europe 2021-2027; 2. Application for participation (Annex A); 3. Declaration (Annex B); 4. Business strategy (Annex B). For more information: https://ec.europa.eu/digital-single-market/en/european-digital-innovation- hubs-digital-europe-programme-0

4.02.2021 Source: Ministry of Economy

MINISTER BORISOV: THE CRISIS IS A CHANCE FOR TRANSFORMATION OF THE BULGARIAN ECONOMY Bulgaria has implemented some of the best and most liberal measures regarding the pandemic crisis. We have struck a balance between anti-epidemic measures and economic growth. This was stated by the Minister of Economy Lachezar Borisov during the online conference "EU Fund for Reconstruction and Sustainability for the Transition of Bulgaria: Innovation - Green Agenda - Digital Transformation", organized by the Economist Events. Borissov pointed out that the crisis is a chance for transformation of the Bulgarian economy, as innovations are the basis of this transformation. "Our country is one of the countries in the EU where the economy has remained open and most businesses have operated normally. The incomes of the workers have increased, which has led to an increase in consumption ", added the Minister of Economy.

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According to him, Bulgaria has one of the lowest levels of government debt, the lowest budget deficit and unemployment is between 5-7% thanks to the introduced measures. Minister Borissov also pointed out that during the pandemic Bulgaria became a member of ERM II and the Banking Union because it complied with the financial rules and continues to comply with them.. Lachezar Borissov stressed that the main priority in the plan for the funds from the Reconstruction Fund is innovation. In addition to digitalization, other priority for the Bulgarian government is the circular economy, which will make the country "greener, stronger" and will give impetus to Bulgarian development. The Minister of Economy announced that three sub-funds of the Reconstruction Fund have been established. One is a fund for technological modernization. The second is for green transition and the third is for digitalization. "We have the best ICT sector in the Balkans, the best automotive sector, the best credit rating in the Balkans, and ultimately we are one of the best investment destinations. 95% of the companies confirm that when they have invested in Bulgaria, they want to reinvest”.

16.2.2021

Source: Ministry of Economy

MINISTER LACHEZAR BORISOV PRESENTED AN INVESTMENT CERTIFICATE OF BGN 400 MILLION, WHICH WILL CREATE 350 JOBS IN A NEW FACTORY IN RAZGRAD The Minister of Economy Lachezar Borisov presented a Class A investment certificate under the Investment Promotion Act (IPA) to the Executive Director of Biovet AD - Angel Zhelyazkov. The amount of the investment amounts to BGN 400 million and as a result 350 new jobs will be created in a new plant of the company in Razgrad. Minister Borissov pointed out that for the last 12 months, during the crisis, investment projects worth BGN 1.6 billion have been certified. According to him, with this project only since the beginning of the year 9 projects (class A) have been promoted under the IPA with a total amount of the planned investments of BGN 577.11 million, which will create nearly 1000 new jobs. "Eight of the projects are outside the capital, six of them are in the processing industry, and five projects are in high-tech productions and services. The Minister of Economy also pointed out that new investment projects for another BGN 400 million are being worked on.

The investment project of Biovet AD is for a new plant - extension of Installation for production of intermediate products, installation for production of immunogenic pharmaceutical products and Photovoltaic power plant in Razgrad. It is planned to expand the existing enterprise by building a new plant and a photovoltaic power plant for own needs. 17.03.2021 Source: Ministry of Economy

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MINISTER BORISOV: OVER BGN 750 MILLION HAVE BEEN PAID TO BUSINESS UNDER THE ANTI- CRISIS ECONOMIC MEASURES IMPLEMENTED BY THE MINISTRY OF ECONOMY

More than BGN 750 million have been paid to businesses through the Ministry of Economy through 10 different mechanisms developed, and through the Ministry of Labor and Social Policy more than BGN 1.1 billion. This was stated by the Minister of Economy Lachezar Borisov during an emergency government meeting.

"Regarding the current joint procedure with the NRA, the second phase of the working capital support program is underway. So far, the National Revenue Agency has paid over BGN 75 million to nearly 7,000 companies, and 70% of these funds, or over BGN 50 million, have reached the restaurant industry, ”said the Minister of Economy. Lachezar Borisov stressed that in addition to this assistance under the other measures, the restaurant industry has reached over BGN 20 million under the procedure for micro-enterprises and the same amount will be provided under the procedure for medium-sized enterprises. Minister Borissov also informed the Prime Minister about the implementation of the measures for maintaining employment. BGN 968 million have been paid so far under the 60/40 mechanism and over 300,000 jobs have been preserved. The anti-crisis measure was extended until the end of May 2021. Nearly BGN 150 million have been provided under the 80/20 measure, with the funds preserving nearly 30,000 jobs in the Hotel and Restaurant, Transport and Tourism sectors. Minister Borissov also said that the measure "Keep me" (75/0) continues, which provides a real 100% of the net remuneration of workers, as well as targeted assistance for parents with children under 14 who study at a distance. "Through the Bulgarian Development Bank we also support individuals through interest-free loans. So far, 37,700 people have received this type of assistance, as well as 1,300 small and medium enterprises, and the total intervention through BDB is BGN 360 million". Lachezar Borissov pointed out that measures are to be introduced to transform the economy through the Recovery and Sustainability Plan. It is about the implementation of the measures under three funds in the amount of BGN 900,000,000. The expectations are that the funds under them will be used by the business within the next 2 years. The funds are provided through the Technological Modernization Fund, representing a grant of small and medium enterprises in the amount of BGN 400 million, through the Green Transition Fund - another BGN 237,500,000 million and through the Digitalization Fund. "- BGN 237,500,000 million. The focus is to improve the productivity of companies, their resource and energy efficiency. стр. 18 от 20 InvestBulgaria Agency (IBA), Vrabcha str. 23, Sofia 1000 Tel.: (+359 2) 985-5500; Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg

"All the measures implemented by the government have had an effect. The reason for this is given by the state of GDP - according to this indicator Bulgaria did 50-60% better than the average for the EU and the Eurozone. According to him, our unemployment rate is below 7%, which is another proof that the balance between anti-epidemic and economic measures has been preserved.

26.03.2021

Source: Ministry of Economy

MINISTER BORISOV PRESENTED AN INVESTMENT CERTIFICATE OF NEARLY BGN 40 MILLION, WHICH WILL CREATE 150 JOBS IN A NEW FACTORY NEAR PLOVDIV

Since the beginning of the year, investments for nearly BGN 800 million have been certified.

The Minister of Economy Lachezar Borisov presented a Class A investment certificate under the Investment Promotion Act (IPA) to Zdravko Linkin, Chairman of the Board of Directors of Interlink Group AD. This happened during the first sod of a high-tech plant for aluminum profiles for window solutions and facades. The amount of investment under the project amounts to BGN 39,705,000, as a result of which 150 new jobs will be created in a new plant in the village of Radinovo, in the industrial zone "Maritsa", part of the economic zone..

The investment project will be implemented jointly by Interlink Group AD and Profilink OOD. The project envisages expansion of the existing activity of the applicants through the construction of a modern production plant with a capacity of 10,000 tons per year, which will develop and produce aluminum profiles with wide application in various fields. The production process in the new company will be fully automated, compliant with European requirements and under strict quality control. In terms of its parameters, the Profilink base is emerging as the largest in this sector of the Balkan Peninsula. Minister Borissov pointed out that together with this project since the beginning of 2021, 13 projects have been certified with a total amount of planned investments of nearly BGN 800 million and nearly 1,300 new jobs. Eleven of the projects are outside the capital, and six projects are in high-tech productions and services. According to him, compared to other years, during the crisis Bulgaria achieved records in terms of investment promotion. "During the crisis year 2020, the flow of FDI in the country amounted to BGN 4.2 billion, which is the highest value for the last 10 years, and increased compared to 2019 by over BGN 1 billion," added the Minister of Economy..

The event was also attended by the District Governor of Plovdiv Dani Kanazireva, the Deputy Governor Petar Petrov, the Mayor of Maritsa Municipality Dimitar Ivanov, the Mayor of Plovdiv Municipality Zdravko Dimitrov, the Deputy Mayor of Plovdiv Municipality Stefan Stoyanov, Eng. Plamen Panchev - creator and executive Director of "Thrace Economic Zone", Yordan Fidanov - Manager of "Profilink" Ltd.

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31.03.2021

Source: Ministry of Economy

UPCOMING EVENTS

The InvestBulgaria Agency will hold ten webinars, which will present information on investment opportunities in Bulgaria and identified priority sectors and key industries, as well as consultations on investment processes and existing conditions in Bulgaria to attract investment. The activity of organizing and conducting the webinars is assigned to the company "Mercury - 97" Ltd. in pursuance of an Administrative Agreement for grants № BG16RFOP002-2.006-001 "Improving the quality and quantity of services to potential investors in Bulgaria" under the Operational Program Innovation and Competitiveness 2014-2020, Priority Axis 2: “Entrepreneurship and Capacity for Growth of Motor Vehicles”, Investment Priority 2.2: “Capacity for Growth of SMEs”, Grant Procedure BG16RFOP002- 2.006 “Positioning Bulgaria as a known and preferred destination for investment by supporting the activities of IBA ".

29-30 Septembe Sofia, Career Show 2020 r Bulgaria 2021

17-21 Abu Dhabi, October UAE 7TH WORLD INVESTMENT FORUM 2021

6-7 Online Global Investment Summit 2020 December 2021

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