Industry Report Manufacture of food products 2016 BULGARIA

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This industry report is part of your subcription access to SeeNews | seenews.com/subscription CONTENTS

I. KEY INDICATORS

II. INTRODUCTION

III. REVENUES

IV. EXPENSES

V. PROFITABILITY

VI. EMPLOYMENT 1 SeeNews Industry Report

NUMBER OF COMPANIES IN MANUFACTURE OF FOOD PRODUCTS I. KEY INDICATORS INDUSTRY BY SECTORS SECTOR 2016 2015 2014 The Manufacture of food products industry in Bulgaria was MANUFACTURE OF BREAD; MANUFACTURE OF 2,929 2,862 2,822 represented by 5,501 companies at the end of 2016, FRESH PASTRY GOODS AND CAKES compared to 5,394 in the previous year and 5,225 in 2014. MANUFACTURE OF OTHER FOOD PRODUCTS 421 401 369 N.E.C. The industry's net profit amounted to BGN 451,206,000 in OTHER PROCESSING AND PRESERVING OF 346 339 321 2016. FRUIT AND VEGETABLES OPERATION OF DAIRIES AND CHEESE MAKING 278 275 261 The industry's total revenue was BGN 9,625,596,000 in PRODUCTION OF MEAT AND POULTRY MEAT 226 219 218 PRODUCTS 2016, up by 9.12% compared to the previous year. PROCESSING AND PRESERVING OF MEAT 186 182 179

MANUFACTURE OF COCOA, CHOCOLATE AND 164 156 146 The combined costs of the companies in the Manufacture SUGAR CONFECTIONERY of food products industry reached BGN 9,120,357,000 in MANUFACTURE OF RUSKS AND BISCUITS; 164 165 151 2016, up by 8.96% year-on-year. MANUFACTURE OF PRESERVED PASTRY GOODS AND CAKES The industry's total revenue makes up 11.47% to the MANUFACTURE OF GRAIN MILL PRODUCTS 123 126 124 country's Gross domestic product (GDP) in 2016, compared PROCESSING AND PRESERVING OF POULTRY 101 100 98 to 10.93% for 2015 and 10.64% in 2014. MEAT MANUFACTURE OF PREPARED FEEDS FOR 95 98 93 A total of 75,588 people were employed in the Manufacture FARM ANIMALS of food products industry in 2016, compared to 79,725 in MANUFACTURE OF PREPARED MEALS AND 75 73 62 DISHES 2015 and 75,203 in 2014. MANUFACTURE OF OILS AND FATS 73 86 84

MANUFACTURE OF CONDIMENTS AND 54 56 55 Most of the companies in the industry are based in Sofia, SEASONINGS followed by Plovdiv and Varna. PROCESSING AND PRESERVING OF FISH, 51 44 44 CRUSTACEANS AND MOLLUSCS MANUFACTURE OF ICE CREAM 44 42 41 II. INTRODUCTION PROCESSING OF TEA AND COFFEE 42 44 41 MANUFACTURE OF MACARONI, NOODLES, 31 32 29 COUSCOUS AND SIMILAR FARINACEOUS In 2016 the companies in the Manufacture of food products PRODUCTS industry numbered 5,501, distributed in 25 sectors. MANUFACTURE OF FRUIT AND VEGETABLE 31 31 22 JUICE PROCESSING AND PRESERVING OF POTATOES 21 18 21 MANUFACTURE OF HOMOGENISED FOOD 20 17 16 INDUSTRY STRUCTURE BY SECTORS AND NUMBER OF COMPANIES PREPARATIONS AND DIETETIC FOOD MANUFACTURE OF PREPARED PET FOODS 16 17 15 421 MANUFACTURE OF MARGARINE AND SIMILAR 4 4 4 1,301 EDIBLE FATS 346 MANUFACTURE OF STARCHES AND STARCH 4 5 5 PRODUCTS 278 MANUFACTURE OF SUGAR 2 2 4

226 III. REVENUES

The total revenue in the industry was BGN 9,625,596,000 in 2016, BGN 8,820,905,000 in 2015 and 8,288,526,000 in 2014.

2,929

Manufacture of bread; manufacture of fresh pastry goods and cakes

Manufacture of other food products n.e.c. Other processing and preserving of fruit and vegetables

Operation of dairies and cheese making Production of meat and poultry meat products Others

In 2015 there were a total of 5,394 companies operating in the industry. In 2014 their number totalled 5,225.

2 SeeNews Industry Report

country in 2015. In 2014 the GVA of the Manufacture of food Total revenue products was BGN 7,066,190,000, or 4.92% of the GVA for Net sales revenue the country's economy. 10,000,000,000 9,625,596,000 GVA BY SECTORS 8,820,905,000 9,000,000,000 RANK SECTOR BGN SHARE OF THE 8,288,526,000 COUNTRY'S 8,921,091,000 GVA (%) 8,000,000,000 8,178,042,000 1 MANUFACTURE OF OILS AND FATS 863,394,000 0.57 7,701,376,000 2 MANUFACTURE OF BREAD; MANUFACTURE 813,317,000 0.53 7,000,000,000 OF FRESH PASTRY GOODS AND CAKES 3 PRODUCTION OF MEAT AND POULTRY MEAT 773,847,000 0.51 6,000,000,000 PRODUCTS 4 OPERATION OF DAIRIES AND CHEESE 719,599,000 0.47 5,000,000,000 MAKING BGN 5 OTHER PROCESSING AND PRESERVING OF 672,494,000 0.44 4,000,000,000 FRUIT AND VEGETABLES 6 PROCESSING AND PRESERVING OF POULTRY 661,198,000 0.43 3,000,000,000 MEAT 7 PROCESSING AND PRESERVING OF MEAT 627,397,000 0.41 2,000,000,000 8 MANUFACTURE OF STARCHES AND STARCH 497,709,000 0.33

1,000,000,000 PRODUCTS 9 MANUFACTURE OF GRAIN MILL PRODUCTS 387,658,000 0.25 0 10 MANUFACTURE OF PREPARED FEEDS FOR 370,269,000 0.24 2014 2015 2016 FARM ANIMALS 11 MANUFACTURE OF OTHER FOOD PRODUCTS 357,569,000 0.23 N.E.C. The companies in the Manufacture of food products market 12 MANUFACTURE OF COCOA, CHOCOLATE 335,382,000 0.22 of Bulgaria earned combined net sales revenues of BGN AND SUGAR CONFECTIONERY 8,921,091,000 in 2016. 13 MANUFACTURE OF RUSKS AND BISCUITS; 328,167,000 0.22 MANUFACTURE OF PRESERVED PASTRY GOODS AND CAKES In annual terms, sales marked a growth of 9.09% compared to 14 PROCESSING AND PRESERVING OF FISH, 119,475,000 0.08 2015. In comparison to 2014 they rose by 15.84%. In 2015 CRUSTACEANS AND MOLLUSCS sales went up by 6.19% year-on-year. 15 PROCESSING OF TEA AND COFFEE 77,981,000 0.05 16 MANUFACTURE OF CONDIMENTS AND 68,631,000 0.05 The Manufacture of food products industry total revenue SEASONINGS make up 11.47% to the country's GDP in 2016, compared to 17 MANUFACTURE OF PREPARED MEALS AND 60,457,000 0.04 10.93% for 2015 and 10.64% in 2014. DISHES 18 MANUFACTURE OF SUGAR 56,318,000 0.04 19 MANUFACTURE OF PREPARED PET FOODS 54,693,000 0.04 Share in GDP 20 MANUFACTURE OF FRUIT AND VEGETABLE 47,296,000 0.03 12 11.47% JUICE 10.93% 21 MANUFACTURE OF ICE CREAM 44,045,000 0.03 10.64%11 22 MANUFACTURE OF MARGARINE AND 17,588,000 0.01

10 SIMILAR EDIBLE FATS 23 PROCESSING AND PRESERVING OF 12,317,000 0.01 9 POTATOES 24 MANUFACTURE OF MACARONI, NOODLES, 12,273,000 0.01 8 COUSCOUS AND SIMILAR FARINACEOUS PRODUCTS 7 25 MANUFACTURE OF HOMOGENISED FOOD 11,418,000 0.01 PREPARATIONS AND DIETETIC FOOD 6

5 We expect, based on the trend in the last three years, the total 4 revenue of the Manufacture of food products industry to

3 change at a compound annual growth rate (CAGR) of 7.76% in 2017. 2 NET SALES REVENUE BY SECTORS 1 RANK SECTOR NET SALES REVENUE (BGN) 0 1 MANUFACTURE OF OILS AND FATS 1,126,557,000 2014 2015 2016 2 MANUFACTURE OF BREAD; MANUFACTURE OF FRESH 895,944,000 PASTRY GOODS AND CAKES

3 PRODUCTION OF MEAT AND POULTRY MEAT 872,012,000 In 2016 the Manufacture of food products industry PRODUCTS contributed to GDP BGN 7,990,492,000 in Gross value added (GVA) accounting for 5.24% of the total for the country's economy.

In the previous year, the industry's GVA amounted BGN 7,452,940,000, accounting for 4.82% of the total for the 3 SeeNews Industry Report

4 OPERATION OF DAIRIES AND CHEESE MAKING 754,825,000 TOP COMPANIES' REVENUE BY SECTORS 5 PROCESSING AND PRESERVING OF POULTRY MEAT 707,590,000 SEGMENT COMPANY TOTAL REVENUE NET SALES (BGN) REVENUE (BGN) 6 OTHER PROCESSING AND PRESERVING OF FRUIT AND 687,798,000 MANUFACTURE OF HOMOGENISED FOOD PREPARATIONS AND DIETETIC FOOD VEGETABLES SLANTCHO AD 4,812,000 4,657,000 7 PROCESSING AND PRESERVING OF MEAT 682,303,000 VIVETA OOD 3,196,000 3,195,000 8 MANUFACTURE OF STARCHES AND STARCH 511,587,000 PRODUCTS VERNADA OOD 2,240,000 2,014,000 9 MANUFACTURE OF PREPARED FEEDS FOR FARM 449,095,000 MANUFACTURE OF PREPARED MEALS AND DISHES ANIMALS KENAR OOD 16,560,000 16,250,000 10 MANUFACTURE OF GRAIN MILL PRODUCTS 437,379,000 FIESTA 13 OOD 14,521,000 13,067,000 11 MANUFACTURE OF COCOA, CHOCOLATE AND SUGAR 423,362,000 PARTNERS AD 9,952,000 1,956,000 CONFECTIONERY MANUFACTURE OF CONDIMENTS AND SEASONINGS 12 MANUFACTURE OF OTHER FOOD PRODUCTS N.E.C. 389,014,000 KONSUL OOD 16,565,000 16,503,000 13 MANUFACTURE OF RUSKS AND BISCUITS; 343,649,000 GERMAN BULGARIAN BUSINESS GROUP 14,655,000 13,713,000 MANUFACTURE OF PRESERVED PASTRY GOODS AND OOD CAKES MERKURIY PROIZVODSTVO I PAKETAZH AD 5,579,000 4,168,000 14 PROCESSING AND PRESERVING OF FISH, 120,888,000 CRUSTACEANS AND MOLLUSCS PROCESSING OF TEA AND COFFEE 15 PROCESSING OF TEA AND COFFEE 82,023,000 BALKAM GROUP OOD 24,701,000 21,066,000 16 MANUFACTURE OF CONDIMENTS AND SEASONINGS 74,148,000 BIANCHI KAFE OOD 18,060,000 17,840,000 17 MANUFACTURE OF PREPARED MEALS AND DISHES 70,853,000 BIOPROGRAMME AD 10,917,000 10,740,000 18 MANUFACTURE OF SUGAR 68,986,000 MANUFACTURE OF COCOA, CHOCOLATE AND SUGAR CONFECTIONERY 19 MANUFACTURE OF PREPARED PET FOODS 58,421,000 NESTLE BULGARIA AD 340,146,000 300,285,000 20 MANUFACTURE OF ICE CREAM 55,123,000 MONDELEZ BULGARIA PRODUCTION OOD 23,692,000 23,446,000 21 MANUFACTURE OF FRUIT AND VEGETABLE JUICE 47,143,000 MELBON AD 12,655,000 11,992,000 22 PROCESSING AND PRESERVING OF POTATOES 19,669,000 MANUFACTURE OF SUGAR 23 MANUFACTURE OF MARGARINE AND SIMILAR EDIBLE 17,870,000 ZAHAR AD 70,205,000 68,986,000 FATS BULGARSKA ZAHAR AD 599,000 0 24 MANUFACTURE OF MACARONI, NOODLES, 12,699,000 MANUFACTURE OF OTHER FOOD PRODUCTS N.E.C. COUSCOUS AND SIMILAR FARINACEOUS PRODUCTS KENDY OOD 41,971,000 40,068,000 25 MANUFACTURE OF HOMOGENISED FOOD 12,153,000 KREMIO AD 39,913,000 39,184,000 PREPARATIONS AND DIETETIC FOOD KORONA M OOD 20,370,000 20,125,000

OPERATION OF DAIRIES AND CHEESE MAKING OBEDINENA MLECHNA KOMPANIA AD 74,241,000 73,885,000 TYRBUL AD 59,843,000 56,390,000 INDUSTRY'S NET SALES REVENUE STRUCTURE BY SECTORS DIMITAR MADZHAROV - 2 OOD 43,552,000 42,071,000 10.04% MANUFACTURE OF ICE CREAM 9.77% DARKO EAD 12,530,000 11,222,000 7.93% IZIDA OOD 11,565,000 10,874,000 SLADOLEDENA FABRIKA OOD 11,006,000 10,448,000 12.63% MANUFACTURE OF RUSKS AND BISCUITS; MANUFACTURE OF PRESERVED PASTRY GOODS AND CAKES 8.46% PRESTIGE-96 AD 70,176,000 68,377,000 ZAHARNI IZDELIA VARNA OOD 61,989,000 60,887,000 ITAL FOOD 37,239,000 35,957,000 MANUFACTURE OF MACARONI, NOODLES, COUSCOUS AND SIMILAR FARINACEOUS PRODUCTS ZLATNO BREZOVO OOD 4,468,000 3,667,000 SIDI - 92 OOD 1,962,000 1,855,000 UNI EXPORT-IMPORT EOOD 1,646,000 1,636,000 MANUFACTURE OF BREAD; MANUFACTURE OF FRESH PASTRY GOODS AND CAKES CHIPITA BULGARIA AD 185,837,000 173,737,000 SIMID SOFIA OOD 56,068,000 52,961,000 51.16% HEBAR AD 29,151,000 27,429,000 OTHER PROCESSING AND PRESERVING OF FRUIT AND VEGETABLES Manufacture of oils and fats KUMINYANO FRUT OOD 43,844,000 40,663,000 Manufacture of bread; manufacture of fresh pastry goods and cakes AGRI BULGARIA OOD 42,879,000 42,858,000 Production of meat and poultry meat products FRUCTO SLIVEN AD 28,165,000 23,291,000 Operation of dairies and cheese making MANUFACTURE OF FRUIT AND VEGETABLE JUICE Processing and preserving of poultry meat PHILICON - 97 AD 28,210,000 26,558,000 Others BEST FRUITS OOD 11,239,000 10,634,000

The highest growth, of 71.81%, was recorded by Manufacture of starches and starch products, while Manufacture of homogenised food preparations and dietetic food registered the sharpest decline, of 41.08%.

4 SeeNews Industry Report

KRICHIMFRUCT OOD 5,609,000 5,596,000 6 CHIPITA BULGARIA AD 185,837,000 173,737,000 PROCESSING AND PRESERVING OF POTATOES 7 MESOKOMBINAT LOVECH AD 139,184,000 132,470,000 BULKARTO OOD 12,168,000 12,108,000 8 SUN FOODS OOD 96,808,000 96,013,000 VASILEV & TODOROV OOD 5,089,000 4,926,000 9 TOPAZ MEL OOD 88,980,000 77,411,000 ELEYA EOOD 850,000 648,000 10 VIAND EAD 85,493,000 84,344,000 PROCESSING AND PRESERVING OF MEAT MESOKOMBINAT LOVECH AD 139,184,000 132,470,000 MESOKOMBINAT RUSE AD 68,865,000 66,050,000 The total revenues of the top 10 companies in the MULTIMES GRUP OOD 35,211,000 31,460,000 Manufacture of food products were 2.9% of GDP in 2016, PROCESSING AND PRESERVING OF POULTRY MEAT compared to 2.35% for 2015 and 2.28% in 2014. PILKO OOD 232,999,000 211,306,000 GRADUS-1 OOD 71,548,000 64,905,000 The top 10 by assets in the Manufacture of food products BREZOVO AD 61,458,000 55,251,000 market made up BGN 1,949,397,000, or 21.85% of the total PRODUCTION OF MEAT AND POULTRY MEAT PRODUCTS net sales revenue. BELLA BULGARIA AD 193,487,000 168,582,000 FERMATA AD 53,211,000 43,208,000 TOP 10 BY TOTAL ASSETS IN THE INDUSTRY RANK COMPANY BGN KEN AD 49,423,000 47,774,000 1 AMYLUM BULGARIA AD 300,050,000 MANUFACTURE OF PREPARED FEEDS FOR FARM ANIMALS 2 BELLA BULGARIA AD 274,332,000 VIAND EAD 85,493,000 84,344,000 3 OLIVA AD 260,400,000 GRADUS-3 AD 80,317,000 79,421,000 4 ZAHAREN KOMBINAT - PLOVDIV AD 255,392,000 FURAZH ROSITSA AD 68,185,000 67,845,000 5 NESTLE BULGARIA AD 130,233,000 MANUFACTURE OF PREPARED PET FOODS 6 TOPAZ MEL OOD 107,752,000 BON OOD 26,324,000 25,855,000 7 CHIPITA BULGARIA AD 96,758,000 FURAZHNI HRANI OOD 13,540,000 13,529,000 8 BISER OLIVA AD 91,471,000 ILTEX OOD 7,513,000 7,490,000 9 MARITZA OLIO AD 89,824,000 MANUFACTURE OF MARGARINE AND SIMILAR EDIBLE FATS 10 FERMATA AD 88,498,000 PETTAS BULGARIA AD 17,281,000 16,845,000 MILPAK - 2013 OOD 578,000 541,000 DIMITRA OOD 488,000 484,000 TOP 10 COMPANIES WITH HIGHEST ANNUAL GROWTH IN MANUFACTURE OF OILS AND FATS OPERATING REVENUE IN MANUFACTURE OF FOOD PRODUCTS OLIVA AD 563,504,000 543,085,000 RANK COMPANY Y/Y GROWTH SUN FOODS OOD 96,808,000 96,013,000 1 ALEMIK EOOD 333400.00 BISER OLIVA AD 83,909,000 71,825,000 % PROCESSING AND PRESERVING OF FISH, CRUSTACEANS AND MOLLUSCS 2 AVICHERIS EOOD 114650.00% ALMAR SEAFOOD 22,114,000 22,034,000 3 MANDRA SARAYA EOOD 58900.00% SEVER - EKSPORT OOD 12,515,000 11,864,000 4 HLEBNI IZDELIA-LOZENEZ AD 40150.00% REYA-FISH OOD 12,280,000 7,050,000 5 GLOBAL RAYS EOOD 27855.56% MANUFACTURE OF GRAIN MILL PRODUCTS 6 DAYARI PRODAKTS EOOD 22044.44% TOPAZ MEL OOD 88,980,000 77,411,000 7 SANTULITA EOOD 17640.00% GOODMILLS BULGARIA OOD 78,600,000 77,864,000 8 KAPRIZ - DEVIN EOOD 12100.00% KOOPERACIJA SIMID 1000, COOPERATIVE 47,201,000 35,946,000 9 GENOV MES EOOD 9950.00% MANUFACTURE OF STARCHES AND STARCH PRODUCTS 10 BULGARSKA ZAHAR AD 9883.33% AMYLUM BULGARIA AD 507,267,000 503,970,000 G.M. OOD 7,870,000 7,601,000 ET MEMO - MESUT ALIOSMANOV 16,000 16,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE MARKET MANUFACTURE OF HOMOGENISED FOOD PREPARATIONS AND DIETETIC FOOD WERE: COMPANY BGN The top 10 companies in terms of total revenue in SLANTCHO AD 4,812,000 Manufacture of food products accounted for 25.28% of the VIVETA OOD 3,196,000 industry's total in 2016, 21.54% in 2015 and 21.43% in 2014. VERNADA OOD 2,240,000

ILEA-M OOD 1,534,000 TOP 10 COMPANIES BY TOTAL AND NET SALES REVENUE IN THE SLIMFOOD OOD 490,000 INDUSTRY RANK COMPANY TOTAL REVENUE NET SALE SIMEONOV ADVARTAYZING EOOD 163,000 (BGN) REVENUE (BGN) V I M PRODUKTION OOD 118,000 1 OLIVA AD 563,504,000 543,085,000 SKARPA OOD 93,000 2 AMYLUM BULGARIA AD 507,267,000 503,970,000 ET ART CATERING-KRASIMIRA KALCHEVA 80,000 3 NESTLE BULGARIA AD 340,146,000 300,285,000 BIONIA EOOD 59,000 4 PILKO OOD 232,999,000 211,306,000 5 BELLA BULGARIA AD 193,487,000 168,582,000 The 10 largest companies in terms of total revenue in sector Manufacture of food products earned total revenue of BGN 12,785,000 and accounted for 0.13% of the industry's total revenue.

5 SeeNews Industry Report

TOP 10 COMPANIES BY TOTAL REVENUE IN THE SECTOR TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY MANUFACTURE OF PREPARED MEALS AND DISHES WERE: MANUFACTURE OF COCOA, CHOCOLATE AND SUGAR COMPANY BGN CONFECTIONERY WERE: KENAR OOD 16,560,000 COMPANY BGN FIESTA 13 OOD 14,521,000 NESTLE BULGARIA AD 340,146,000 PARTNERS AD 9,952,000 MONDELEZ BULGARIA PRODUCTION OOD 23,692,000 DENITO OOD 8,350,000 MELBON AD 12,655,000 KOLEV I S-IE - ESKADA SD 7,422,000 INTERION AD 12,012,000 MASTAR PIK EAD 7,157,000 ZAHAREN KOMBINAT - PLOVDIV AD 10,267,000 BURGER GROUP OOD 1,799,000 CHOCO TEAM OOD 8,048,000 EURO CATERING OOD 1,516,000 VALE 1 OOD 7,533,000 M DZHI 1 EOOD 1,417,000 DIAMANT - 93 OOD 4,339,000 MN-PARTI OOD 1,085,000 VIP SIMERS GROUP OOD 4,032,000 ILCHOVSKI 94 EOOD 3,754,000

The 10 largest companies in terms of total revenue in sector Manufacture of food products earned total revenue of BGN The 10 largest companies in terms of total revenue in sector 69,779,000 and accounted for 0.72% of the industry's total Manufacture of food products earned total revenue of BGN revenue. 426,478,000 and accounted for 4.43% of the industry's total revenue. TOP 10 COMPANIES BY TOTAL REVENUE IN THE FIELD MANUFACTURE OF CONDIMENTS AND SEASONINGS WERE: TOP COMPANIES BY TOTAL REVENUE IN THE FIELD COMPANY BGN MANUFACTURE OF SUGAR WERE: KONSUL OOD 16,565,000 COMPANY BGN GERMAN BULGARIAN BUSINESS GROUP OOD 14,655,000 ZAHAR AD 70,205,000 MERKURIY PROIZVODSTVO I PAKETAZH AD 5,579,000 BULGARSKA ZAHAR AD 599,000 ALEX-S 2002 OOD 4,463,000 VEDA OOD 3,604,000 PI-1 OOD 3,305,000 The largest companies in terms of total revenue in sector KODAG OOD 3,208,000 Manufacture of food products earned total revenue of BGN MIA FOODS 21 OOD 2,585,000 70,804,000 and accounted for 0.74% of the industry's total SALEX GROUP OOD 2,530,000 revenue. PODPRAVKI KOM EOOD 2,240,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE MARKET MANUFACTURE OF OTHER FOOD PRODUCTS N.E.C. WERE: COMPANY BGN The 10 largest companies in terms of total revenue in sector KENDY OOD 41,971,000 Manufacture of food products earned total revenue of BGN KREMIO AD 39,913,000 58,734,000 and accounted for 0.61% of the industry's total revenue. KORONA M OOD 20,370,000 PURATOS BULGARIA AD 19,874,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE SECTOR APIMEL ORGANIC OOD 19,627,000 PROCESSING OF TEA AND COFFEE WERE: BIOSET OOD 16,425,000 COMPANY BGN YADKI DETELINA OOD 15,789,000 BALKAM GROUP OOD 24,701,000 SI KO OOD 15,606,000 BIANCHI KAFE OOD 18,060,000 ELIT - P OOD 14,064,000 BIOPROGRAMME AD 10,917,000 MULTIPACK BULGARIA OOD 10,546,000 JACOBS DOUWE EGBERTS OPS BG OOD 5,821,000 BALKAM AD 5,698,000 AGRO - OIL OOD 5,624,000 The 10 largest companies in terms of total revenue in sector JORDANI EOOD 3,959,000 Manufacture of food products earned total revenue of BGN PLANTABUL OOD 3,374,000 214,185,000 and accounted for 2.23% of the industry's total FOBOS OOD 2,430,000 revenue. SANTA FE BG EOOD 1,619,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE SECTOR OPERATION OF DAIRIES AND CHEESE MAKING WERE: COMPANY BGN The 10 largest companies in terms of total revenue in sector OBEDINENA MLECHNA KOMPANIA AD 74,241,000 Manufacture of food products earned total revenue of BGN TYRBUL AD 59,843,000 82,203,000 and accounted for 0.85% of the industry's total revenue. DIMITAR MADZHAROV - 2 OOD 43,552,000 SCHREIBER FOODS BULGARIA OOD 36,368,000 MEGGLE BULGARIA OOD 33,783,000

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MJ DAIRIES OOD 23,181,000 VAS OOD 1,556,000 ELVI OOD 21,449,000 KAVEL INVEST OOD 874,000 MAKLER-KOMERS OOD 20,839,000 GALLIA OOD 662,000 BI.SI.SI. HANDEL OOD 20,838,000 SPEKTAR-KOMS OOD 547,000 MANDRA-RILCI OOD 18,960,000 KRAMAS OOD 473,000 OOD GEOBOY 2009 237,000 KOOPERATSIYA REGINA 204,000 The 10 largest companies in terms of total revenue in sector Manufacture of food products earned total revenue of BGN 353,054,000 and accounted for 3.67% of the industry's total The 10 largest companies in terms of total revenue in sector revenue. Manufacture of food products earned total revenue of BGN 12,629,000 and accounted for 0.13% of the industry's total TOP 10 COMPANIES BY TOTAL REVENUE IN THE MARKET revenue. MANUFACTURE OF ICE CREAM WERE: COMPANY BGN TOP 10 COMPANIES BY TOTAL REVENUE IN THE SECTOR DARKO EAD 12,530,000 MANUFACTURE OF BREAD; MANUFACTURE OF FRESH PASTRY IZIDA OOD 11,565,000 GOODS AND CAKES WERE: SLADOLEDENA FABRIKA OOD 11,006,000 COMPANY BGN GELATO 2009 OOD 6,953,000 CHIPITA BULGARIA AD 185,837,000 KARIL I TANYA AD 5,653,000 SIMID SOFIA OOD 56,068,000 UNCLE CHARLY OOD 4,507,000 HEBAR AD 29,151,000 MEDINA OOD 1,837,000 SIMID AGRO OOD 27,657,000 SANDER 2000 OOD 1,334,000 SAVIMEX OOD 25,997,000 CORTE DILETTO OOD 922,000 DOBRUDJANSKI HLIAB AD 18,237,000 SORENTO OOD 739,000 MIO OOD 14,173,000 HLEBNA PROMISHLENOST AD 13,499,000 ELIAZ OOD 13,113,000 The 10 largest companies in terms of total revenue in sector HLEBOZAVOD TIMS EOOD 12,074,000 Manufacture of food products earned total revenue of BGN 57,046,000 and accounted for 0.59% of the industry's total revenue. The 10 largest companies in terms of total revenue in sector Manufacture of food products earned total revenue of BGN TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY 395,806,000 and accounted for 4.11% of the industry's total MANUFACTURE OF RUSKS AND BISCUITS; MANUFACTURE OF revenue. PRESERVED PASTRY GOODS AND CAKES WERE: COMPANY BGN TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY OTHER PRESTIGE-96 AD 70,176,000 PROCESSING AND PRESERVING OF FRUIT AND VEGETABLES ZAHARNI IZDELIA VARNA OOD 61,989,000 WERE: ITAL FOOD 37,239,000 COMPANY BGN DAY AND NIGHT OOD 28,212,000 KUMINYANO FRUT OOD 43,844,000 POBEDA AD 21,904,000 AGRI BULGARIA OOD 42,879,000 SI COMMERCIAL 7 OOD 21,065,000 FRUCTO SLIVEN AD 28,165,000 KARMELA 2000 OOD 17,062,000 OLINEZA PREMIUM OOD 27,840,000 ROO BRANDS OOD 9,420,000 VIKTORIA NUTS OOD 24,856,000 VELIKOVI OOD 8,926,000 SUNOPTA FOODS BULGARIA OOD 24,526,000 LOZEV OOD 8,382,000 DEKADANS - DIMITAR SHISHKOV ET 21,823,000 EUROPACK OOD 20,253,000 KONEKS TIVA AD 19,762,000 The 10 largest companies in terms of total revenue in sector KERPI OOD 17,713,000 Manufacture of food products earned total revenue of BGN 284,375,000 and accounted for 2.95% of the industry's total revenue. The 10 largest companies in terms of total revenue in sector Manufacture of food products earned total revenue of BGN TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY 271,661,000 and accounted for 2.82% of the industry's total MANUFACTURE OF MACARONI, NOODLES, COUSCOUS AND revenue. SIMILAR FARINACEOUS PRODUCTS WERE: COMPANY BGN TOP 10 COMPANIES BY TOTAL REVENUE IN THE SECTOR ZLATNO BREZOVO OOD 4,468,000 MANUFACTURE OF FRUIT AND VEGETABLE JUICE WERE: SIDI - 92 OOD 1,962,000 COMPANY BGN UNI EXPORT-IMPORT EOOD 1,646,000 PHILICON - 97 AD 28,210,000

7 SeeNews Industry Report

BEST FRUITS OOD 11,239,000 GRADUS-1 OOD 71,548,000 KRICHIMFRUCT OOD 5,609,000 BREZOVO AD 61,458,000 MARSHAL 91 OOD 1,136,000 GALUS 2004 OOD 31,339,000 VITANEA OOD 1,082,000 BULGARPLOD-SOFIA AD 29,839,000 SANTULITA EOOD 887,000 HERON TREYD OOD 28,077,000 YUM FRESH OOD 367,000 ALLIANCE AGRICOLE - ALAG OOD 22,561,000 BAZ-KOMPANI OOD 353,000 SVS-98 OOD 20,797,000 EKO MED I KO OOD 286,000 AGROPLASMENT-92-V AD 18,898,000 AGROBIOTEH PROIZVODSTVO AD 257,000 MAXI CHICKEN OOD 18,548,000

The 10 largest companies in terms of total revenue in sector The 10 largest companies in terms of total revenue in sector Manufacture of food products earned total revenue of BGN Manufacture of food products earned total revenue of BGN 49,426,000 and accounted for 0.51% of the industry's total 536,064,000 and accounted for 5.57% of the industry's total revenue. revenue.

TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY TOP 10 COMPANIES BY TOTAL REVENUE IN THE FIELD PROCESSING AND PRESERVING OF POTATOES WERE: PRODUCTION OF MEAT AND POULTRY MEAT PRODUCTS WERE: COMPANY BGN COMPANY BGN BULKARTO OOD 12,168,000 BELLA BULGARIA AD 193,487,000 VASILEV & TODOROV OOD 5,089,000 FERMATA AD 53,211,000 ELEYA EOOD 850,000 KEN AD 49,423,000 IVKO 2014 EOOD 536,000 DELIKATES-2 OOD 38,481,000 DANI 5001 OOD 453,000 CECH JOSEPH NOVOSAD OOD 34,332,000 ZAIRA-Z.Z. OOD 353,000 KAROL-FERNANDEZ MEAT OOD 30,528,000 ANNI OOD 197,000 LOTOS OOD 25,339,000 VIV 94 OOD 100,000 FINES-2 EOOD 22,389,000 ANRO 73 OOD 90,000 TANDEM-V OOD 21,928,000 KIKO - 92 OOD 77,000 ELIT MES MINEV - RODOPA - V.T. OOD 21,040,000

The 10 largest companies in terms of total revenue in sector The 10 largest companies in terms of total revenue in sector Manufacture of food products earned total revenue of BGN Manufacture of food products earned total revenue of BGN 19,913,000 and accounted for 0.21% of the industry's total 490,158,000 and accounted for 5.09% of the industry's total revenue. revenue.

TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY TOP 10 COMPANIES BY TOTAL REVENUE IN THE MARKET PROCESSING AND PRESERVING OF MEAT WERE: MANUFACTURE OF PREPARED FEEDS FOR FARM ANIMALS WERE: COMPANY BGN COMPANY BGN MESOKOMBINAT LOVECH AD 139,184,000 VIAND EAD 85,493,000 MESOKOMBINAT RUSE AD 68,865,000 GRADUS-3 AD 80,317,000 MULTIMES GRUP OOD 35,211,000 FURAZH ROSITSA AD 68,185,000 TANDEM-POPOVO OOD 19,180,000 BONMIKS OOD 59,632,000 BORIMES OOD 15,362,000 TRAKIYSKI FURAZH OOD 22,531,000 PIKANT TRADE OOD 15,091,000 HL-TOPMIX OOD 21,878,000 KESARMES EOOD 14,865,000 FZ VASIL KOSTOV OOD 19,004,000 MESOKOMBINAT-SVISHTOV OOD 14,694,000 BIOPRODUCTS - BULGARIA OOD 14,209,000 MESFOOD AD 13,604,000 VLADINI TRADING OOD 13,843,000 HELIKOM OOD 13,043,000 AGRO SIP OOD 9,474,000

The 10 largest companies in terms of total revenue in sector The 10 largest companies in terms of total revenue in sector Manufacture of food products earned total revenue of BGN Manufacture of food products earned total revenue of BGN 349,099,000 and accounted for 3.63% of the industry's total 394,566,000 and accounted for 4.10% of the industry's total revenue. revenue.

TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY PROCESSING AND PRESERVING OF POULTRY MEAT WERE: MANUFACTURE OF PREPARED PET FOODS WERE: COMPANY BGN COMPANY BGN PILKO OOD 232,999,000 BON OOD 26,324,000

8 SeeNews Industry Report

FURAZHNI HRANI OOD 13,540,000 FISHKOM OOD 6,801,000 ILTEX OOD 7,513,000 BLACK SEA FISHERIES - BOURGAS AD 5,281,000 STAN COMMERCE OOD 6,431,000 P.A.L.-BG OOD 4,982,000 VENDI OOD 2,772,000 MORSKI RIBOLOV-NESEBAR OOD 4,030,000 MEGAFRUIT OOD 2,514,000 AGROMARKET INTERNATIONAL OOD 1,234,000 BULDRAINIM OOD 349,000 The 10 largest companies in terms of total revenue in sector KOKO KOMERS OOD 153,000 Manufacture of food products earned total revenue of BGN DZHENERAL TREYDING AND PRADAKSHAN OOD 73,000 94,118,000 and accounted for 0.98% of the industry's total revenue.

The 10 largest companies in terms of total revenue in sector TOP 10 COMPANIES BY TOTAL REVENUE IN THE FIELD Manufacture of food products earned total revenue of BGN MANUFACTURE OF GRAIN MILL PRODUCTS WERE: 60,903,000 and accounted for 0.63% of the industry's total COMPANY BGN revenue. TOPAZ MEL OOD 88,980,000 GOODMILLS BULGARIA OOD 78,600,000 TOP COMPANIES BY TOTAL REVENUE IN THE INDUSTRY KOOPERACIJA SIMID 1000, COOPERATIVE 47,201,000 MANUFACTURE OF MARGARINE AND SIMILAR EDIBLE FATS WERE: PALIRRIA BULGARIA AD 45,921,000 COMPANY BGN SADINA PLANT OOD 18,059,000 PETTAS BULGARIA AD 17,281,000 UNIBEL AD 14,452,000 MILPAK - 2013 OOD 578,000 TEHRA OOD 12,535,000 DIMITRA OOD 488,000 MELNITSA SLIVEN - 2003 OOD 12,216,000 MILPAK-OOD 1,000 MELNITSA VARNA 2006 OOD 11,729,000 KOLOR FOODS OOD 10,205,000

The largest companies in terms of total revenue in sector Manufacture of food products earned total revenue of BGN The 10 largest companies in terms of total revenue in sector 18,348,000 and accounted for 0.19% of the industry's total Manufacture of food products earned total revenue of BGN revenue. 339,898,000 and accounted for 3.53% of the industry's total revenue. TOP 10 COMPANIES BY TOTAL REVENUE IN THE FIELD MANUFACTURE OF OILS AND FATS WERE: TOP COMPANIES BY TOTAL REVENUE IN THE SECTOR COMPANY BGN MANUFACTURE OF STARCHES AND STARCH PRODUCTS WERE: OLIVA AD 563,504,000 COMPANY BGN SUN FOODS OOD 96,808,000 AMYLUM BULGARIA AD 507,267,000 BISER OLIVA AD 83,909,000 G.M. OOD 7,870,000 MARITZA OLIO AD 71,956,000 ET MEMO - MESUT ALIOSMANOV 16,000 KLAS OLIO AD 62,081,000 GEOSTROY ENGINEERING OOD 52,119,000 OLIMEX OOD 44,581,000 The largest companies in terms of total revenue in sector KEHLIBAR OOD 35,869,000 Manufacture of food products earned total revenue of BGN NIK-SOT GROUP EOOD 35,765,000 515,153,000 and accounted for 5.35% of the industry's total ZVEZDA AD 29,591,000 revenue.

PRODUCTION SALES FIGURES FOR MANUFACTURE OF FOOD The 10 largest companies in terms of total revenue in sector PRODUCTS IN 2016 SECTOR SALES IN BGN INCL. SALES ON INCL. EXPORTS IN Manufacture of food products earned total revenue of BGN THE DOMESTIC BGN 1,076,183,000 and accounted for 11.18% of the industry's total MARKET IN BGN revenue. PRODUCTION OF MEAT AND POULTRY 702,751,730 664,042,730 38,709,000 MEAT PRODUCTS

MANUFACTURE OF BREAD; 701,120,630 573,321,630 127,799,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY MANUFACTURE OF FRESH PASTRY PROCESSING AND PRESERVING OF FISH, CRUSTACEANS AND GOODS AND CAKES MOLLUSCS WERE: MANUFACTURE OF OILS AND FATS 653,191,870 292,271,090 360,921,000 COMPANY BGN PROCESSING AND PRESERVING OF MEAT 580,824,920 566,392,530 14,433,000 ALMAR SEAFOOD 22,114,000 PROCESSING AND PRESERVING OF 558,242,130 294,500,060 263,742,000 SEVER - EKSPORT OOD 12,515,000 POULTRY MEAT REYA-FISH OOD 12,280,000 OTHER PROCESSING AND PRESERVING 522,316,910 231,578,280 290,738,000 DIAVENA OOD 10,055,000 OF FRUIT AND VEGETABLES ELECTA OOD 8,376,000 MANUFACTURE OF STARCHES AND 503,574,000 60,457,000 443,117,000 STARCH PRODUCTS OOD ESETRA - KOMERS 7,684,000 MANUFACTURE OF PREPARED FEEDS FOR 342,317,580 271,159,330 71,158,000 FARM ANIMALS

9 SeeNews Industry Report

The total operating expenses of the companies in the MANUFACTURE OF GRAIN MILL 323,351,890 237,902,470 85,449,000 Manufacture of food products industry were BGN PRODUCTS 8,988,200,000 in 2016. MANUFACTURE OF RUSKS AND 311,493,210 224,213,870 87,279,000 BISCUITS; MANUFACTURE OF PRESERVED PASTRY GOODS AND CAKES Operating costs increased by 9.25% compared with the previous year and went up by 16.06% when compared to MANUFACTURE OF OTHER FOOD 264,687,780 161,664,360 103,023,000 PRODUCTS N.E.C. 2014. MANUFACTURE OF COCOA, CHOCOLATE 248,486,230 124,332,630 124,154,000 AND SUGAR CONFECTIONERY We expect, based on the trend in the last three years, the total PROCESSING AND PRESERVING OF FISH, 106,741,560 36,051,920 70,690,000 costs of the Manufacture of food products industry to change CRUSTACEANS AND MOLLUSCS at a compound annual growth rate (CAGR) of 7.55% in 2017. MANUFACTURE OF SUGAR 61,945,000 61,945,000 0 MANUFACTURE OF PREPARED MEALS 57,330,820 56,691,820 639,000 TOTAL COSTS BY SECTORS AND DISHES RANK SECTOR TOTAL COSTS (BGN) MANUFACTURE OF CONDIMENTS AND 52,836,000 46,144,000 6,692,000 1 MANUFACTURE OF OILS AND FATS 1,219,069,000 SEASONINGS 2 MANUFACTURE OF BREAD; MANUFACTURE OF FRESH 883,303,000 PROCESSING OF TEA AND COFFEE 49,118,250 45,793,250 3,325,000 PASTRY GOODS AND CAKES MANUFACTURE OF ICE CREAM 45,739,000 43,566,000 2,173,000 3 PRODUCTION OF MEAT AND POULTRY MEAT 867,279,000 MANUFACTURE OF PREPARED PET 43,272,000 17,786,320 25,485,000 PRODUCTS FOODS 4 OPERATION OF DAIRIES AND CHEESE MAKING 787,311,000 MANUFACTURE OF FRUIT AND 41,173,710 31,333,560 9,842,000 5 PROCESSING AND PRESERVING OF POULTRY MEAT 756,322,000 VEGETABLE JUICE 6 OTHER PROCESSING AND PRESERVING OF FRUIT AND 709,364,000 OPERATION OF DAIRIES AND CHEESE 14,513,200 14,513,200 0 VEGETABLES MAKING 7 PROCESSING AND PRESERVING OF MEAT 700,175,000 MANUFACTURE OF MARGARINE AND 13,998,000 8,168,000 5,830,000 8 MANUFACTURE OF PREPARED FEEDS FOR FARM 491,209,000 SIMILAR EDIBLE FATS ANIMALS MANUFACTURE OF MACARONI, 10,598,000 9,665,000 933,000 9 MANUFACTURE OF STARCHES AND STARCH 462,843,000 NOODLES, COUSCOUS AND SIMILAR PRODUCTS FARINACEOUS PRODUCTS 10 MANUFACTURE OF GRAIN MILL PRODUCTS 455,373,000 MANUFACTURE OF HOMOGENISED 9,492,000 8,750,000 742,000 FOOD PREPARATIONS AND DIETETIC 11 MANUFACTURE OF COCOA, CHOCOLATE AND SUGAR 426,401,000 FOOD CONFECTIONERY PROCESSING AND PRESERVING OF 8,028,000 7,882,000 146,000 12 MANUFACTURE OF OTHER FOOD PRODUCTS N.E.C. 371,501,000 POTATOES 13 MANUFACTURE OF RUSKS AND BISCUITS; 327,526,000 MANUFACTURE OF PRESERVED PASTRY GOODS AND CAKES 14 PROCESSING AND PRESERVING OF FISH, 123,664,000 CRUSTACEANS AND MOLLUSCS IV. EXPENSES 15 PROCESSING OF TEA AND COFFEE 87,239,000 16 MANUFACTURE OF PREPARED MEALS AND DISHES 81,067,000 The combined costs of the companies in the Manufacture of 17 MANUFACTURE OF CONDIMENTS AND SEASONINGS 70,699,000 food products industry reached BGN 9,120,357,000 in 2016. 18 MANUFACTURE OF SUGAR 66,955,000 19 MANUFACTURE OF ICE CREAM 59,530,000 20 MANUFACTURE OF PREPARED PET FOODS 58,741,000 Total Expenses 21 MANUFACTURE OF FRUIT AND VEGETABLE JUICE 52,055,000 Operational expenses 22 PROCESSING AND PRESERVING OF POTATOES 20,006,000 10,000,000,000 23 MANUFACTURE OF MARGARINE AND SIMILAR EDIBLE 17,978,000 9,120,357,000 FATS 9,000,000,000 8,370,745,000 24 MANUFACTURE OF MACARONI, NOODLES, 13,616,000 COUSCOUS AND SIMILAR FARINACEOUS PRODUCTS 7,885,361,000 8,988,200,000 8,000,000,000 25 MANUFACTURE OF HOMOGENISED FOOD 11,131,000 8,227,365,000 PREPARATIONS AND DIETETIC FOOD 7,744,725,000 7,000,000,000

6,000,000,000

5,000,000,000 BGN

4,000,000,000

3,000,000,000

2,000,000,000

1,000,000,000

0 2014 2015 2016

In annual terms, total expenses grew by 8.96% compared to 2015 and rose by 15.66% in comparison to 2014.

10 SeeNews Industry Report

Employment expenses INDUSTRY'S TOTAL COSTS STRUCTURE BY SECTORS Salaries expenses 9.51% Social security expenses 8.63% 786,584,000 800,000,000 9.68% 718,384,000 700,000,000657,996,000 13.37% 672,192,000 600,000,000 8.29% 612,355,000

500,000,000559,499,000

400,000,000 BGN

300,000,000

200,000,000

95,927,000 102,761,000 111,887,000 100,000,000 50.51%

0 Manufacture of oils and fats 2014 2015 2016 Manufacture of bread; manufacture of fresh pastry goods and cakes Production of meat and poultry meat products Operation of dairies and cheese making The highest growth in labour costs, of 47.10%, was registered by Manufacture of macaroni, noodles, couscous and similar Processing and preserving of poultry meat farinaceous products, while Manufacture of homogenised Others food preparations and dietetic food marked the sharpest fall, of 43.31%. Manufacture of starches and starch products marked the highest annual increase in total expenses, of 77.08%, while The monthly costs per employee in the Manufacture of food total expenses fell the most, by 46.93%, for Manufacture of products industry averaged BGN 867 in 2016, BGN 751 in homogenised food preparations and dietetic food. 2015 and BGN 729 in 2014.

In terms of operating expenses, the highest growth, of 77.18%, The monthly social security costs per employee in the was recorded by the Manufacture of starches and starch industry averaged BGN 123 in 2016, versus BGN 107 in 2015 products sector. The sharpest fall was posted by Manufacture and BGN 106 in 2014. of homogenised food preparations and dietetic food - 46.93%. EMPLOYMENT EXPENSES IN MANUFACTURE OF FOOD PRODUCTS BY SECTORS IN 2016 The biggest spenders in the industry, with costs of over 10% RANK SECTOR EMPLOYMENT AVERAGE EXPENSES (BGN) EXPENSES PER of industry's costs, numbered 24, including BISER OLIVA AD, EMPLOYEE VIAND EAD, ZAHARNI IZDELIA VARNA OOD, (BGN) MESOKOMBINAT LOVECH AD, BELLA BULGARIA AD. The 1 MANUFACTURE OF BREAD; MANUFACTURE 160,825,000 7,683 OF FRESH PASTRY GOODS AND CAKES medium spenders, or those in the 5% and 10% range count 23 2 PRODUCTION OF MEAT AND POULTRY MEAT 73,893,000 11,945 and include Cech Joseph Novosad OOD, MEGGLE BULGARIA PRODUCTS OOD, GEOSTROY ENGINEERING OOD, KEN AD, ITAL FOOD. 3 OPERATION OF DAIRIES AND CHEESE 70,390,000 9,677 Below 5% threshhold are 5,454 companies, including DIKSI - MAKING SZ OOD, MOTRISA EOOD, PEPINO 7 EOOD, DZZD 4 OTHER PROCESSING AND PRESERVING OF 68,280,000 10,631 BALGARSKI HLYAB I ZAKUSKI, KARMENITA OOD. FRUIT AND VEGETABLES 5 MANUFACTURE OF RUSKS AND BISCUITS; 55,651,000 12,072 Employment expenses in the Manufacture of food products MANUFACTURE OF PRESERVED PASTRY industry went up by 9.49% on the year to BGN 786,584,000 in GOODS AND CAKES 2016. 6 MANUFACTURE OF COCOA, CHOCOLATE 53,907,000 15,486 AND SUGAR CONFECTIONERY

7 PROCESSING AND PRESERVING OF POULTRY 52,544,000 11,625 MEAT 8 PROCESSING AND PRESERVING OF MEAT 48,343,000 9,812 9 MANUFACTURE OF OTHER FOOD PRODUCTS 38,823,000 12,788 N.E.C. 10 MANUFACTURE OF GRAIN MILL PRODUCTS 31,724,000 10,106 11 MANUFACTURE OF OILS AND FATS 28,671,000 12,321

11 SeeNews Industry Report

Average taxes expenses by company 12 MANUFACTURE OF PREPARED FEEDS FOR 20,204,000 13,478 9,822 FARM ANIMALS 10,000 9,462 13 PROCESSING AND PRESERVING OF FISH, 14,008,000 8,888 9,041 CRUSTACEANS AND MOLLUSCS 9,000 14 MANUFACTURE OF STARCHES AND STARCH 12,458,000 42,959 PRODUCTS 8,000 15 MANUFACTURE OF PREPARED MEALS AND 10,737,000 9,030 DISHES 7,000 16 MANUFACTURE OF CONDIMENTS AND 10,711,000 13,874 SEASONINGS 6,000 17 PROCESSING OF TEA AND COFFEE 9,846,000 10,904

18 MANUFACTURE OF ICE CREAM 6,735,000 9,818 5,000

19 MANUFACTURE OF PREPARED PET FOODS 6,507,000 12,660 BGN

20 MANUFACTURE OF FRUIT AND VEGETABLE 4,918,000 12,054 4,000 JUICE

21 MANUFACTURE OF MACARONI, NOODLES, 2,205,000 7,000 3,000 COUSCOUS AND SIMILAR FARINACEOUS PRODUCTS 2,000 22 MANUFACTURE OF HOMOGENISED FOOD 1,936,000 8,682 PREPARATIONS AND DIETETIC FOOD 1,000 23 PROCESSING AND PRESERVING OF 1,341,000 6,416 POTATOES 24 MANUFACTURE OF SUGAR 1,075,000 13,782 0 25 MANUFACTURE OF MARGARINE AND 852,000 12,171 2014 2015 2016 SIMILAR EDIBLE FATS

EXPENSES ON TAXES BY SECTORS RANK SECTOR BGN Y/Y CHANGE THE TOP 10 COMPANIES BY AVERAGE MONTHLY COSTS PER 1 PRODUCTION OF MEAT AND POULTRY MEAT 6,496,000 42.61% EMPLOYEE IN THE INDUSTRY PRODUCTS RANK COMPANY BGN 2 OTHER PROCESSING AND PRESERVING OF 6,037,000 13.43% 1 HLEBNI IZDELIA-LOZENEZ AD 6,500 FRUIT AND VEGETABLES 2 BIO BENYAMIN OOD 6,083 3 MANUFACTURE OF BREAD; MANUFACTURE OF 5,973,000 17.65% 3 FERMATA AD 5,154 FRESH PASTRY GOODS AND CAKES 4 VAYTA PRO AD 4,542 4 MANUFACTURE OF COCOA, CHOCOLATE AND 5,248,000 39.24% SUGAR CONFECTIONERY 5 AD BOLGARPRODUKT 4,250 5 MANUFACTURE OF STARCHES AND STARCH 5,230,000 33.55% 6 AMYLUM BULGARIA AD 3,779 PRODUCTS 7 GERMAN BULGARIAN BUSINESS GROUP OOD 3,710 6 MANUFACTURE OF OTHER FOOD PRODUCTS 3,707,000 18.13% 8 RAMDEKS FUUD EOOD 3,583 N.E.C. 9 ZONAPHARM OOD 3,563 7 PROCESSING AND PRESERVING OF POULTRY 3,648,000 33.24% 10 RAMCOPHARM OOD 3,337 MEAT 8 MANUFACTURE OF GRAIN MILL PRODUCTS 3,277,000 35.19% 9 OPERATION OF DAIRIES AND CHEESE MAKING 3,235,000 4.69% The industry's tax expenses stood at BGN 54,033,000 in 2016. 10 MANUFACTURE OF RUSKS AND BISCUITS; 2,983,000 -17.89% In 2015 it paid taxes of BGN 51,042,000. In 2014 the industry MANUFACTURE OF PRESERVED PASTRY GOODS AND CAKES paid BGN 47,240,000 in taxes. 11 PROCESSING AND PRESERVING OF MEAT 1,601,000 23.06%

12 MANUFACTURE OF PREPARED FEEDS FOR 1,514,000 -17.22% FARM ANIMALS 13 PROCESSING AND PRESERVING OF FISH, 1,117,000 27.51% CRUSTACEANS AND MOLLUSCS 14 MANUFACTURE OF OILS AND FATS 1,091,000 -81.40% 15 MANUFACTURE OF CONDIMENTS AND 723,000 -2.03% SEASONINGS 16 MANUFACTURE OF ICE CREAM 530,000 9.50% 17 PROCESSING OF TEA AND COFFEE 474,000 55.41% 18 MANUFACTURE OF PREPARED PET FOODS 274,000 -13.29% 19 MANUFACTURE OF PREPARED MEALS AND 272,000 -74.14% DISHES 20 MANUFACTURE OF HOMOGENISED FOOD 247,000 -4.63% PREPARATIONS AND DIETETIC FOOD 21 MANUFACTURE OF FRUIT AND VEGETABLE 95,000 -62.30% JUICE 22 MANUFACTURE OF SUGAR 85,000 -206.25% 23 MANUFACTURE OF MACARONI, NOODLES, 71,000 1.43% COUSCOUS AND SIMILAR FARINACEOUS PRODUCTS

12 SeeNews Industry Report

24 PROCESSING AND PRESERVING OF POTATOES 68,000 13.33% OPERATING PROFIT/LOSS BY SECTORS (BGN) 25 MANUFACTURE OF MARGARINE AND SIMILAR 37,000 -27.45% SECTOR 2016 2015 2014 EDIBLE FATS PRODUCTION OF MEAT AND POULTRY 60,832,000 34,773,000 29,162,000 MEAT PRODUCTS MANUFACTURE OF BREAD; 58,327,000 46,425,000 48,335,000 MANUFACTURE OF FRESH PASTRY GOODS AND CAKES V. PROFITABILITY MANUFACTURE OF STARCHES AND 52,310,000 39,004,000 52,113,000 STARCH PRODUCTS

OTHER PROCESSING AND PRESERVING OF 51,939,000 41,093,000 23,975,000 The industry's net profit amounted to BGN 451,206,000 in FRUIT AND VEGETABLES 2016, compared to a net profit of BGN 399,118,000 in 2015 MANUFACTURE OF COCOA, CHOCOLATE 47,691,000 37,891,000 27,015,000 and a net profit of BGN 355,925,000 in 2014. AND SUGAR CONFECTIONERY PROCESSING AND PRESERVING OF 46,618,000 26,889,000 27,705,000 POULTRY MEAT Net profit/loss MANUFACTURE OF OTHER FOOD 35,330,000 29,038,000 27,841,000 Operating profit/loss PRODUCTS N.E.C.

600,000,000 OPERATION OF DAIRIES AND CHEESE 31,914,000 17,752,000 34,712,000 MAKING 550,000,000 MANUFACTURE OF GRAIN MILL PRODUCTS 27,843,000 18,721,000 14,426,000 505,239,000 MANUFACTURE OF RUSKS AND BISCUITS; 27,176,000 34,682,000 30,520,000 500,000,000 MANUFACTURE OF PRESERVED PASTRY 442,330,000 450,000,000 GOODS AND CAKES 400,577,000 451,206,000 PROCESSING AND PRESERVING OF MEAT 12,293,000 9,100,000 7,848,000 400,000,000 MANUFACTURE OF PREPARED FEEDS FOR 11,842,000 19,670,000 11,783,000 399,118,000 FARM ANIMALS 350,000,000 355,925,000 PROCESSING AND PRESERVING OF FISH, 10,980,000 6,573,000 14,978,000 300,000,000 CRUSTACEANS AND MOLLUSCS

BGN MANUFACTURE OF OILS AND FATS 8,767,000 52,194,000 43,353,000 250,000,000 MANUFACTURE OF CONDIMENTS AND 7,172,000 7,253,000 9,879,000 200,000,000 SEASONINGS PROCESSING OF TEA AND COFFEE 4,237,000 -450,000 2,954,000 150,000,000 MANUFACTURE OF SUGAR 3,849,000 1,050,000 -16,815,000

100,000,000 MANUFACTURE OF PREPARED MEALS AND 2,328,000 9,288,000 7,907,000 DISHES 50,000,000 MANUFACTURE OF PREPARED PET FOODS 2,307,000 2,668,000 -166,000

0 MANUFACTURE OF HOMOGENISED FOOD 1,892,000 2,056,000 1,444,000 PREPARATIONS AND DIETETIC FOOD 2014 2015 2016 MANUFACTURE OF MARGARINE AND 370,000 500,000 463,000 SIMILAR EDIBLE FATS TOP 10 COMPANIES BY HIGHEST NET PROFIT IN MANUFACTURE MANUFACTURE OF ICE CREAM 286,000 4,095,000 2,069,000 OF FOOD PRODUCTS MANUFACTURE OF MACARONI, NOODLES, 229,000 167,000 759,000 RANK COMPANY BGN COUSCOUS AND SIMILAR FARINACEOUS PRODUCTS 1 AMYLUM BULGARIA AD 46,823,000 PROCESSING AND PRESERVING OF 208,000 514,000 253,000 2 NESTLE BULGARIA AD 33,592,000 POTATOES 3 CHIPITA BULGARIA AD 25,063,000 MANUFACTURE OF FRUIT AND VEGETABLE -1,501,000 1,384,000 -1,936,000 4 BELLA BULGARIA AD 18,193,000 JUICE 5 PRESTIGE-96 AD 11,479,000 6 PALIRRIA BULGARIA AD 11,051,000 7 OBEDINENA MLECHNA KOMPANIA AD 7,351,000 The profit margin for the Manufacture of food products 8 PARTNERS AD 6,967,000 industry stood at 5.29% in 2016, while in 2015 it amounted to 9 GOODMILLS BULGARIA OOD 6,831,000 5.06% and 4.87% in 2014. 10 ZLATNO PILE MONTANA EAD 6,742,000 PROFIT MARGIN BY SECTORS RANK SECTOR PROFIT MARGIN TOP COMPANIES BY HIGHEST NET LOSS IN MANUFACTURE OF 1 MANUFACTURE OF HOMOGENISED FOOD PREPARATIONS 14.62% FOOD PRODUCTS AND DIETETIC FOOD RANK COMPANY BGN 2 MANUFACTURE OF STARCHES AND STARCH PRODUCTS 10.15% 1 FRONERI BULGARIA EOOD 5,281,000 3 MANUFACTURE OF COCOA, CHOCOLATE AND SUGAR 10.08% 2 KENAR OOD 4,800,000 CONFECTIONERY 3 ZVEZDA AD 2,682,000 4 MANUFACTURE OF CONDIMENTS AND SEASONINGS 9.22% 4 KOLEV I S-IE - ESKADA SD 2,325,000 5 MANUFACTURE OF OTHER FOOD PRODUCTS N.E.C. 8.72% 5 AVIS EOOD 2,205,000 6 PROCESSING AND PRESERVING OF FISH, CRUSTACEANS 8.22% AND MOLLUSCS

The combined operating earnings of the companies in the Manufacture of food products market went up by 14.22% y/y to BGN 505,239,000 in 2016.

13 SeeNews Industry Report

7 MANUFACTURE OF RUSKS AND BISCUITS; MANUFACTURE 7.68% LEADING INDUSTRY'S SECTORS BY ROA OF PRESERVED PASTRY GOODS AND CAKES 15 14.71 8 OTHER PROCESSING AND PRESERVING OF FRUIT AND 6.90% VEGETABLES 13.5 13.1 9 PRODUCTION OF MEAT AND POULTRY MEAT PRODUCTS 6.60% 12 11.58 10 MANUFACTURE OF BREAD; MANUFACTURE OF FRESH 6.22% PASTRY GOODS AND CAKES 10.5 11 PROCESSING AND PRESERVING OF POULTRY MEAT 5.83% 9 12 MANUFACTURE OF GRAIN MILL PRODUCTS 5.80% 13 MANUFACTURE OF SUGAR 5.46% 7.5 14 PROCESSING OF TEA AND COFFEE 4.96% 6 15 OPERATION OF DAIRIES AND CHEESE MAKING 3.93% 4.5 16 MANUFACTURE OF PREPARED PET FOODS 3.78% 17 MANUFACTURE OF PREPARED MEALS AND DISHES 3.08% 3 18 MANUFACTURE OF PREPARED FEEDS FOR FARM ANIMALS 2.37% 1.5 19 MANUFACTURE OF MARGARINE AND SIMILAR EDIBLE FATS 2.02% 0 20 PROCESSING AND PRESERVING OF MEAT 1.73% Manufacture of Manufacture of Manufacture of sugar starches and starch homogenised food 21 MANUFACTURE OF MACARONI, NOODLES, COUSCOUS 1.66% products preparations and AND SIMILAR FARINACEOUS PRODUCTS dietetic food 22 PROCESSING AND PRESERVING OF POTATOES 1.03% 23 MANUFACTURE OF OILS AND FATS 0.72% 24 MANUFACTURE OF ICE CREAM 0.48% LEADING INDUSTRY'S SECTORS BY ROE 25 MANUFACTURE OF FRUIT AND VEGETABLE JUICE -3.01% 27 26.21 24.3 24.3 22.18 The Manufacture of food products industry's return on equity 21.6 (ROE) is 12.99% compared to 12.94% in 2015 and 12.81% in 18.9 2014. 16.2

The Manufacture of food products's return on assets (ROA) 13.5 was 5.57%, while in 2015 it amounted to 5.25% and 5.07% in 10.8 2014. 8.1

ROE 5.4 ROA 2.7 12.81% 12.94% 12.99% 13 0 Manufacture of sugar Manufacture of Manufacture of homogenised food bread; manufacture 11.7 preparations and of fresh pastry dietetic food goods and cakes

10.4 TOP 10 COMPANIES BY HIGHEST AVERAGE NET PROFIT PER 9.1 EMPLOYEE IN MANUFACTURE OF FOOD PRODUCTS RANK COMPANY BGN COMPANY HEADQUARTERS 7.8 (CITY) 1 ALFA KAPITAL OOD 1,155,500 SOFIA 6.5 2 ROUGIE AD 518,000 SOFIA

5.2 3 MYULARI - 90 OOD 413,000 BELOZEM 5.57% 5.07% 5.25% 4 HLEBNI IZDELIA-LOZENEZ AD 407,000 SOFIA 3.9 5 ALFA MARKETING OOD 392,000 SOFIA 6 BULGAFROST AD 367,500 PLOVDIV 2.6 7 PARTNERS AD 348,350 KOSTINBRO D 1.3 8 KOOPAGROSPEKTAR OOD 280,000 DOBRICH 9 ADISAN OOD 258,000 SOFIA 0 2014 2015 2016 10 ALEKS-G-2010 EOOD 247,000 RAKOVSKI

About 50.00% of the 10 leading companies in terms of net profit per employee are located in SOFIA, while 10.00% are KOSTINBROD-based and 10.00% are headquartered in BELOZEM.

The average net sales revenue per employee in the Manufacture of food products industry amounted to BGN 118,023 in 2016, up by 15.06% compared to 2015 and up by 15.25% compared to 2014.

14 SeeNews Industry Report

The industry's average operating revenue per employee rose by 15.29% year-on-year in 2016 to BGN 126,466. It rose by MANUFACTURE OF PREPARED 59,590 63,663 70,139 1,189 15.72% compared to 2014. MEALS AND DISHES MANUFACTURE OF CONDIMENTS 96,047 100,723 100,869 772 The Manufacture of food products industry generated an AND SEASONINGS average BGN 127,343 in total revenue per employee. In 2015 PROCESSING OF TEA AND COFFEE 90,834 94,602 101,302 903 and 2014 the figure was BGN 110,642 and BGN 110,215, MANUFACTURE OF COCOA, 121,621 135,954 136,194 3,481 CHOCOLATE AND SUGAR respectively. CONFECTIONERY MANUFACTURE OF SUGAR 884,436 904,577 907,744 78 The average total revenue per company in the Manufacture of MANUFACTURE OF OTHER FOOD 128,134 133,418 134,002 3,036 food products industry increased to BGN 1,749,790 in 2016 PRODUCTS N.E.C. from BGN 1,635,318 in 2015. The 2014 value was BGN OPERATION OF DAIRIES AND 103,770 111,765 112,624 7,274 1,586,321. CHEESE MAKING MANUFACTURE OF ICE CREAM 80,354 86,707 87,195 686 A company in the Manufacture of food products market made MANUFACTURE OF RUSKS AND 74,544 76,791 76,942 4,610 on average a net sales revenue of BGN 1,621,722 in 2016, BISCUITS; MANUFACTURE OF PRESERVED PASTRY GOODS AND compared to BGN 1,516,137 in 2015 and BGN 1,473,948 in CAKES 2014. MANUFACTURE OF MACARONI, 40,314 43,905 43,952 315 NOODLES, COUSCOUS AND The Manufacture of food products industry made 3.62% of SIMILAR FARINACEOUS PRODUCTS the overall sales country-wide, rising its market share by 0.33 MANUFACTURE OF BREAD; 42,801 44,773 44,983 20,933 pp. MANUFACTURE OF FRESH PASTRY GOODS AND CAKES

OTHER PROCESSING AND 107,084 117,166 118,528 6,423 Operating profit per employee for the industry as a whole was PRESERVING OF FRUIT AND BGN 6,684 in 2016. For comparison in 2015 it amounted to VEGETABLES BGN 5,548 and BGN 5,548 in 2014. MANUFACTURE OF FRUIT AND 115,547 122,051 123,907 408 VEGETABLE JUICE THE TOP BY OPERATIONAL PROFIT PER EMPLOYEE IN PROCESSING AND PRESERVING OF 94,110 96,512 96,718 209 MANUFACTURE OF FOOD PRODUCTS POTATOES RANK COMPANY BGN PROCESSING AND PRESERVING OF 138,482 144,537 144,605 4,927 1 ALFA KAPITAL OOD 1,227,000 MEAT 2 ROUGIE AD 518,000 PROCESSING AND PRESERVING OF 156,546 176,839 177,642 4,520 POULTRY MEAT 3 MYULARI - 90 OOD 459,000 PRODUCTION OF MEAT AND 140,965 149,106 150,034 6,186 4 ALFA MARKETING OOD 436,000 POULTRY MEAT PRODUCTS 5 HLEBNI IZDELIA-LOZENEZ AD 407,000 MANUFACTURE OF PREPARED 299,596 332,939 335,591 1,499 FEEDS FOR FARM ANIMALS MANUFACTURE OF PREPARED PET 113,660 118,642 118,770 514 TOP 10 COMPANIES WITH HIGHEST CORRELATION OPERATING FOODS REVENUE - NUMBER OF EMPLOYEES - EMPLOYMENT EXPENSES* MANUFACTURE OF MARGARINE 255,286 261,800 262,114 70 RANK COMPANY NAME CORRELATION AND SIMILAR EDIBLE FATS (BGN) MANUFACTURE OF OILS AND FATS 484,124 523,306 527,648 2,327 1 DRB AD 8,677,000 PROCESSING AND PRESERVING OF 76,706 84,767 85,434 1,576 2 MYULARI - 90 OOD 6,021,000 FISH, CRUSTACEANS AND 3 VIVA TRADING OOD 5,96