Industry Report Mining Support Service Activities 2014 Bulgaria

Industry Report Mining support service activities 2014 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

SECTOR 2014 2013 2012 BULGARIA SUPPORT ACTIVITIES FOR OTHER MINING AND 25 25 22 QUARRYING SUPPORT ACTIVITIES FOR PETROLEUM AND 16 14 12 I. KEY INDICATORS NATURAL GAS EXTRACTION

The Mining support service activities industry in Bulgaria was represented by 41 companies at the end of 2014, III. REVENUES compared to 39 in the previous year and 34 in 2012.

The total revenue in the industry was BGN 32,213,000 in The industry's net loss amounted to BGN 10,298,000 in 2014, BGN 23,683,000 in 2013 and 25,652,000 in 2012. 2014.

The industry's total revenue was BGN 32,213,000 in 2014, Total revenue up by 36.02% compared to the previous year. Net sales revenue

33,000,000 32,213,000 The combined costs of the companies in the Mining

support service activities industry reached BGN 42,482,000 30,000,000 in 2014, down by 18.83% year-on-year. 27,000,00025,652,000 The industry's total revenue makes up 0.04% to the 23,683,000 24,000,000 26,253,000 country's Gross domestic product (GDP) in 2014, compared to 0.03% for 2013 and 0.03% in 2012. 21,000,000 20,188,000 A total of 365 people were employed in the Mining support 18,000,000 18,108,000

service activities industry at the end of 2014, compared to BGN 15,000,000 244 in 2013 and 201 in 2012. 12,000,000 Most of the companies in the industry are based in Sofia, followed by Varna and Laki. 9,000,000

6,000,000 II. INTRODUCTION 3,000,000 0 In 2014 the companies in the Mining support service activities 2012 2013 2014 industry numbered 41, distributed in 2 sectors.

The companies in the Mining support service activities market 16 of Bulgaria earned combined net sales revenues of BGN 26,253,000 in 2014.

In annual terms, sales marked a rise of 30.04% compared to 2013. In comparison to 2012 they grew by 44.98%. In 2013 sales rose by 11.49% year-on-year.

The Mining support service activities industry total revenue make up 0.04% to the country's GDP in 2014, compared to 0.03% for 2013 and 0.03% in 2012.

Support activities for other25 mining and quarrying

Support activities for petroleum and natural gas extraction

In 2013 there were a total of 39 companies operating in the industry. In 2012 their number totalled 34.

NUMBER OF COMPANIES IN MINING SUPPORT SERVICE ACTIVITIES INDUSTRY BY SECTORS

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Share0.04% 0.04 INDUSTRY'S NET SALES REVENUE STRUCTURE BY SECTORS

0.036

0.0320.03% 0.03%

0.028

0.024

0.02 7.18%

0.016

0.012

0.008 92.82%

0.004

0 2012 2013 2014

In 2014 the Mining support service activities industry contributed to GDP BGN 26,301,000 in Gross value added Support activities for other mining and quarrying (GVA) accounting for 0.02% of the total for the country's economy. Support activities for petroleum and natural gas extraction

In the previous year, the industry's GVA amounted BGN The highest growth, of 36.14%, was recorded by Support 21,811,000, accounting for 0.02% of the total for the country activities for other mining and quarrying, while Support in 2013. In 2012 the GVA of the Mining support service activities for petroleum and natural gas extraction registered activities was BGN 22,023,000, or 0.02% of the GVA for the the sharpest decline, of 17.65%. country's economy. TOP COMPANIES' REVENUE BY SEGMENTS SEGMENT COMPANY TOTAL REVENUE NET SALES GVA BY SECTORS (BGN) REVENUE (BGN) RANK SECTOR BGN SHARE OF THE COUNTRY'S SUPPORT ACTIVITIES FOR OTHER MINING AND QUARRYING GVA (%) MINNA KOMPANIYA PETROV AD 11,456,000 10,809,000 1 SUPPORT ACTIVITIES FOR OTHER MINING 24,009,000 0.02 GEOPS-BOLKAN DRILING SERVISIS EOOD 10,797,000 8,455,000 AND QUARRYING MINERALI INDUSTRIALI BULGARIA OOD 2,532,000 2,519,000 2 SUPPORT ACTIVITIES FOR PETROLEUM AND 2,292,000 0.00 NATURAL GAS EXTRACTION SUPPORT ACTIVITIES FOR PETROLEUM AND NATURAL GAS EXTRACTION BULGARGEOMIN LTD DZZD 1,708,000 1,495,000 We expect, based on the trend in the last three years, the total DAYREKT PETROLEUM BULGARIA EOOD 799,000 74,000 revenue of the Mining support service activities industry to BI DZHI EKSPLOREYSHANS EOOD 634,000 0 change at a compound annual growth rate (CAGR) of 12.06% in 2015. The top 10 companies in terms of total revenue in Mining support service activities accounted for 94.57% of the Support activities for other mining and quarrying contributed industry's total in 2014, 92.21% in 2013 and 91.12% in 2012. net sales revenue of BGN 24,368,000 or 92.82% of the total net sales in the industry, and sector Support activities for TOP 10 COMPANIES BY TOTAL AND NET SALES REVENUE IN THE petroleum and natural gas extraction - BGN 1,885,000 INDUSTRY RANK COMPANY TOTAL REVENUE NET SALE (7.18%). (BGN) REVENUE (BGN) 1 MINNA KOMPANIYA PETROV AD 11,456,000 10,809,000 2 GEOPS-BOLKAN DRILING SERVISIS EOOD 10,797,000 8,455,000 3 MINERALI INDUSTRIALI BULGARIA OOD 2,532,000 2,519,000 4 BULGARGEOMIN LTD DZZD 1,708,000 1,495,000 5 PE VA KOMERS EOOD 1,038,000 1,026,000 6 DAYREKT PETROLEUM BULGARIA EOOD 799,000 74,000 7 BI DZHI EKSPLOREYSHANS EOOD 634,000 0 8 EKO ANTRATSIT EAD (FORMERLY KNOWN AS 555,000 0 ANTRA AD) 9 GEOMAKS BULGARIA EOOD 509,000 508,000 10 GEODRIL OOD 436,000 430,000

The total revenues of the top 10 companies in the Mining support service activities were 0.04% of GDP in 2014, 3 SeeNews Industry Report

compared to 0.03% for 2013 and 0.03% in 2012. The 10 largest companies in terms of total revenue in sector The top 10 by assets in the Mining support service activities Mining support service activities earned total revenue of BGN market made up BGN 23,378,000, or 89.05% of the total net 4,011,000 and accounted for 12.45% of the industry's total sales revenue. revenue.

TOP 10 BY TOTAL ASSETS IN THE INDUSTRY RANK COMPANY BGN 1 DAYREKT PETROLEUM BULGARIA EOOD 76,377,000 IV. EXPENSES 2 REPSOL BULGARIA B.V. KLON BULGARIA KCHT 33,442,000 3 PROEKTNA KOMPANIYA NEFTOPROVOD BURGAS- 17,045,000 The combined costs of the companies in the Mining support ALEKSANDRUPOLIS BG EAD service activities industry reached BGN 42,482,000 in 2014. 4 GEOPS-BOLKAN DRILING SERVISIS EOOD 15,900,000 5 MINNA KOMPANIYA PETROV AD 12,431,000 Total Expenses 6 MINERALI INDUSTRIALI BULGARIA OOD 7,281,000 Operational expenses 7 BULGARGEOMIN LTD DZZD 2,173,000 8 GRUPA ZA NAUCHNI IZSLEDVANIYA I SERVIZ AD 1,988,000 60,000,000 9 LAKI-2006 AD 1,912,000 55,000,000 52,338,000 10 STROY-LES-SPED OOD 1,478,000 50,000,000 50,912,000 TOP 10 COMPANIES WITH HIGHEST ANNUAL GROWTH IN 45,000,000 42,482,000 OPERATING REVENUE IN MINING SUPPORT SERVICE ACTIVITIES RANK COMPANY Y/Y GROWTH 40,000,000 40,476,000 1 SIM STROY GRUP OOD 385.71% 35,000,000 2 BULGARGEOMIN LTD DZZD 306.67% 3 KAT TEH SARVISIS YUGOIZTOCHNA EVROPA EOOD KCHT 300.00% 30,000,000

BGN 25,579,000 4 DAYREKT PETROLEUM BULGARIA EOOD 197.72% 25,000,000 5 SI DI SEND EOOD 185.71% 20,000,00024,089,000 6 UNIVERS M EOOD 125.76%

7 EOOD RAHOV GRUP 50.00% 15,000,000 8 GEOMAKS BULGARIA EOOD 35.11% 10,000,000 9 PE VA KOMERS EOOD 31.77% 10 MINERALI INDUSTRIALI BULGARIA OOD 4.60% 5,000,000

0 TOP 10 COMPANIES BY TOTAL REVENUE IN THE SECTOR SUPPORT 2012 2013 2014 ACTIVITIES FOR OTHER MINING AND QUARRYING WERE: COMPANY BGN MINNA KOMPANIYA PETROV AD 11,456,000 In annual terms, total expenses decreased by 18.83% GEOPS-BOLKAN DRILING SERVISIS EOOD 10,797,000 compared to 2013 and rose by 66.08% in comparison to MINERALI INDUSTRIALI BULGARIA OOD 2,532,000 2012. PE VA KOMERS EOOD 1,038,000 EKO ANTRATSIT EAD (FORMERLY KNOWN AS ANTRA AD) 555,000 The total operating expenses of the companies in the Mining GEOMAKS BULGARIA EOOD 509,000 support service activities industry were BGN 40,476,000 in GEODRIL OOD 436,000 2014. BIMIN OOD 151,000 UNIVERS M EOOD 149,000 Operating costs went down by 20.50% compared with the SIM STROY GRUP OOD 136,000 previous year and went up by 68.03% when compared to 2012. The 10 largest companies in terms of total revenue in sector Mining support service activities earned total revenue of BGN We expect, based on the trend in the last three years, the total 27,759,000 and accounted for 86.17% of the industry's total costs of the Mining support service activities industry to revenue. change at a compound annual growth rate (CAGR) of 28.87% in 2015. TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY SUPPORT ACTIVITIES FOR PETROLEUM AND NATURAL GAS Support activities for other mining and quarrying reported the EXTRACTION WERE: highest total costs, of BGN 28,945,000, followed by Support COMPANY BGN activities for petroleum and natural gas extraction with BGN BULGARGEOMIN LTD DZZD 1,708,000 13,537,000. DAYREKT PETROLEUM BULGARIA EOOD 799,000 BI DZHI EKSPLOREYSHANS EOOD 634,000 KAT TEH SARVISIS YUGOIZTOCHNA EVROPA EOOD KCHT 316,000 TP UEDARFORD INTERNESHANAL IYSTARN YURAP 219,000 REPSOL BULGARIA B.V. KLON BULGARIA KCHT 214,000 DZHEY KEY EKS BULKAN BG 65,000 GRUPA ZA NAUCHNI IZSLEDVANIYA I SERVIZ AD 51,000 KOYNARE DEVELOPMENT BULGARIA EOOD 3,000 DZHEY KEY EKS BULGARIA LIMITID-KLON 2,000 4 SeeNews Industry Report

Employment expenses INDUSTRY'S TOTAL COSTS STRUCTURE BY SECTORS Salaries expenses Social security expenses 31.87% 7,000,000 6,259,000

6,000,000

5,000,0004,695,000 4,583,000 5,345,000

4,000,000 4,110,000 3,971,000 BGN 3,000,000

2,000,000

914,000 1,000,000585,000 609,000

0 2012 2013 2014

68.13% The highest growth in labour costs, of 73.27%, was registered by Support activities for other mining and quarrying, while Support activities for other mining and quarrying Support activities for petroleum and natural gas extraction Support activities for petroleum and natural gas extraction marked the sharpest fall, of 27.50%.

Support activities for other mining and quarrying marked the The monthly costs per employee in the Mining support highest annual rise in total expenses, of 48.22%, while total service activities industry averaged BGN 1,429 in 2014, BGN expenses went down the most, by 58.74%, for Support 1,565 in 2013 and BGN 1,947 in 2012. activities for petroleum and natural gas extraction. The monthly social security costs per employee in the In terms of operating expenses, the highest growth, of industry averaged BGN 209 in 2014, versus BGN 208 in 2013 49.80%, was recorded by the Support activities for other and BGN 243 in 2012. mining and quarrying sector. The sharpest drop was posted by Support activities for petroleum and natural gas extraction EMPLOYMENT EXPENSES IN MINING SUPPORT SERVICE - 60.46%. ACTIVITIES BY SECTORS IN 2014 RANK SECTOR EMPLOYMENT AVERAGE EXPENSES EXPENSES PER The biggest spenders in the industry, with costs of over 10% (BGN) EMPLOYEE of industry's costs, numbered 6, including DAYREKT (BGN) PETROLEUM BULGARIA EOOD, MINNA KOMPANIYA PETROV 1 SUPPORT ACTIVITIES FOR OTHER MINING AND 5,049,000 15,347 QUARRYING AD, GEOPS-BOLKAN DRILING SERVISIS EOOD, MINERALI 2 SUPPORT ACTIVITIES FOR PETROLEUM AND 1,210,000 33,611 INDUSTRIALI BULGARIA OOD, REPSOL BULGARIA B.V. KLON NATURAL GAS EXTRACTION BULGARIA KCHT. The medium spenders, or those in the 5% and 10% range count 4 and include PROEKTNA KOMPANIYA THE TOP 10 COMPANIES BY AVERAGE MONTHLY COSTS PER NEFTOPROVOD BURGAS-ALEKSANDRUPOLIS BG EAD, Eko EMPLOYEE IN THE INDUSTRY Antratsit EAD (formerly known as Antra AD), PE VA KOMERS RANK COMPANY BGN EOOD, BI DZHI EKSPLOREYSHANS EOOD. Below 5% 1 TP UEDARFORD INTERNESHANAL IYSTARN YURAP 10,167 threshhold are 31 companies, including SIM STROY GRUP 2 BULGARGEOMIN LTD DZZD 4,260 OOD, ALFONS 63 OOD, UNIVERS M EOOD, KOYNARE 3 DAYREKT PETROLEUM BULGARIA EOOD 2,893 DEVELOPMENT BULGARIA EOOD, NARUMAN OOD. 4 GRUPA ZA NAUCHNI IZSLEDVANIYA I SERVIZ AD 2,472 5 NABUKO GAZ PAYPLAYN BULGARIA EOOD- V LIKVIDATSIYA 2,333 Employment expenses in the Mining support service activities 6 EKO ANTRATSIT EAD (FORMERLY KNOWN AS ANTRA AD) 2,083 industry increased by 36.57% on the year to BGN 6,259,000 in 7 PROEKTNA KOMPANIYA NEFTOPROVOD BURGAS- 1,667 2014. ALEKSANDRUPOLIS BG EAD 8 MINNA KOMPANIYA PETROV AD 1,512 9 KAT TEH SARVISIS YUGOIZTOCHNA EVROPA EOOD KCHT 1,468 10 MINERALI INDUSTRIALI BULGARIA OOD 1,437

The industry's tax expenses stood at BGN 29,000 in 2014. In 2013 it paid taxes of BGN 260,000. In 2012 the industry paid BGN 239,000 in taxes.

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2 PE VA KOMERS EOOD 196,000 Average taxes expenses by company 3 MINERALI INDUSTRIALI BULGARIA OOD 44,000 8,000 4 BIMIN OOD 36,000 7,029 5 BI DZHI EKSPLOREYSHANS EOOD 24,000 7,000 6,666 6 SIM STROY GRUP OOD 22,000 7 UNIVERS M EOOD 19,000

6,000 8 GEOMAKS BULGARIA EOOD 19,000 9 DZHEY KEY EKS BULKAN BG 18,000 10 NELIK INVEST EOOD 10,000 5,000

TOP COMPANIES BY HIGHEST NET LOSS IN MINING SUPPORT 4,000 SERVICE ACTIVITIES

BGN RANK COMPANY BGN 1 REPSOL BULGARIA B.V. KLON BULGARIA KCHT 6,540,000 3,000 2 DAYREKT PETROLEUM BULGARIA EOOD 1,388,000 3 PROEKTNA KOMPANIYA NEFTOPROVOD BURGAS- 989,000 2,000 ALEKSANDRUPOLIS BG EAD 4 BULGARGEOMIN LTD DZZD 733,000 5 EKO ANTRATSIT EAD (FORMERLY KNOWN AS ANTRA AD) 375,000 1,000 707

The combined operating losses of the companies in the 0 Mining support service activities field increased by 64.18% y/y 2012 2013 2014 to BGN 10,255,000 in 2014.

OPERATING PROFIT/LOSS BY SECTORS (BGN) EXPENSES ON TAXES BY SECTORS SECTOR 2014 2013 2012 RANK SECTOR BGN Y/Y CHANGE SUPPORT ACTIVITIES FOR OTHER MINING -729,000 634,000 1,483,000 1 SUPPORT ACTIVITIES FOR OTHER MINING AND 37,000 -72.18% AND QUARRYING QUARRYING SUPPORT ACTIVITIES FOR PETROLEUM AND -9,526,000 -29,260,000 -1,408,000 2 SUPPORT ACTIVITIES FOR PETROLEUM AND -8,000 -106.30% NATURAL GAS EXTRACTION NATURAL GAS EXTRACTION

The profit margin for the Mining support service activities industry stood at -32.48% in 2014, while in 2013 it amounted V. PROFITABILITY to -122.88% and 0.30% in 2012.

The industry's net loss amounted to BGN 10,298,000 in 2014, PROFIT MARGIN BY SECTORS RANK SECTOR PROFIT compared to a net loss of BGN 28,915,000 in 2013 and a net MARGIN loss of BGN 166,000 in 2012. 1 SUPPORT ACTIVITIES FOR OTHER MINING AND QUARRYING -2.60% 2 SUPPORT ACTIVITIES FOR PETROLEUM AND NATURAL GAS -266.09% EXTRACTION Net profit/loss

Operating profit/loss The Mining support service activities industry's return on 11,000,000 equity (ROE) is 31.19% compared to 92.17% in 2013 and -0.95% in 2012. 7,000,000 The Mining support service activities's return on assets (ROA) 3,000,000 75,000 was -5.76%, while in 2013 it amounted to -18.92% and -0.14%

-1,000,000 in 2012. -166,000

-5,000,000

-9,000,000 -10,255,000 BGN

-13,000,000 -10,298,000

-17,000,000

-21,000,000

-25,000,000 -28,626,000 -29,000,000 2012 -28,915,0002013 2014

TOP 10 COMPANIES BY HIGHEST NET PROFIT IN MINING SUPPORT SERVICE ACTIVITIES RANK COMPANY BGN 1 GEOPS-BOLKAN DRILING SERVISIS EOOD 496,000

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ROE RANK COMPANY BGN COMPANY HEADQUARTERS ROA (CITY)

100 1 PE VA KOMERS EOOD 21,778 ROZOVO 2 BIMIN OOD 18,000 SOFIA 90 92.17% 3 SIM STROY GRUP OOD 11,000 GABER 80 4 GEOMAKS BULGARIA EOOD 6,333 VARNA 5 EOOD RAHOV GRUP 5,000 LAKI 70 6 AHARNON EOOD 5,000 SOFIA 60 7 UNIVERS M EOOD 4,750 STARA ZAGORA 50 8 GEOPS-BOLKAN DRILING SERVISIS EOOD 3,329 PLOVDIV 40 9 MINERALI INDUSTRIALI BULGARIA OOD 2,095 SEVLIEVO 10 KERAMIKA ASPIDA OOD 1,000 MONTANA 30 31.19% 20 About 20.00% of the 10 leading companies in terms of net profit per employee are located in SOFIA, while 10.00% are 10 -0.14% LAKI-based and 10.00% are headquartered in SEVLIEVO. 0 -5.76% -0.95% -10 The average net sales revenue per employee in the Mining -18.92% support service activities industry amounted to BGN 71,926 in -20 2014, down by 13.07% compared to 2013 and down by 2012 2013 2014 20.16% compared to 2012.

The industry's average operating revenue per employee LEADING INDUSTRY'S SECTORS BY ROA decreased by 9.39% year-on-year in 2014 to BGN 86,510. It went down by 31.11% compared to 2012. 0

-1 The Mining support service activities market generated an -1.27 average BGN 88,255 in total revenue per employee. In 2013 -2 and 2012 the figure was BGN 97,061 and BGN 127,622, -3 respectively.

-4 The average total revenue per company in the Mining support service activities industry went up to BGN 785,683 in 2014 -5 from BGN 607,256 in 2013. The 2012 value was BGN 754,471. -6 A company in the Mining support service activities field made -7 on average a net sales revenue of BGN 640,317 in 2014, -8 compared to BGN 517,641 in 2013 and BGN 532,588 in 2012. -8.11 -9 Support activities Support activities The Mining support service activities industry made 0.01% of for other mining and for petroleum and the overall sales country-wide. quarrying natural gas extraction Operating profit per employee for the industry as a whole was BGN -28,096 in 2014. For comparison in 2013 it amounted to LEADING INDUSTRY'S SECTORS BY ROE BGN -117,320 and BGN -117,320 in 2012. 16 15.24 THE TOP BY OPERATIONAL PROFIT PER EMPLOYEE IN MINING 14 SUPPORT SERVICE ACTIVITIES 12 RANK COMPANY BGN 1 PE VA KOMERS EOOD 24,778 10 2 BIMIN OOD 20,000 8 3 SIM STROY GRUP OOD 12,500 4 GEOMAKS BULGARIA EOOD 7,000 6 5 EOOD RAHOV GRUP 6,000 4 2 TOP 10 COMPANIES WITH HIGHEST CORRELATION OPERATING REVENUE - NUMBER OF EMPLOYEES - EMPLOYMENT EXPENSES* 0 RANK COMPANY NAME CORRELATION (BGN) -2 1 BULGARGEOMIN LTD DZZD 162,375 -2.65 -4 2 GEOMAKS BULGARIA EOOD 162,333 Support activities Support activities for petroleum and for other mining and 3 KERAMIKA ASPIDA OOD 104,000 natural gas quarrying 4 MINERALI INDUSTRIALI BULGARIA OOD 102,952 extraction 5 PE VA KOMERS EOOD 100,222 TOP 10 COMPANIES BY HIGHEST AVERAGE NET PROFIT PER 6 TP UEDARFORD INTERNESHANAL IYSTARN YURAP 97,000 EMPLOYEE IN MINING SUPPORT SERVICE ACTIVITIES 7 SeeNews Industry Report

7 MINNA KOMPANIYA PETROV AD 84,694 8 EKO ANTRATSIT EAD (FORMERLY KNOWN AS ANTRA AD) 67,500 9 BIMIN OOD 67,000 10 SIM STROY GRUP OOD 62,000

*The correlation is calculated by subtracting the quotient of the operating profit, and the employment expenses to the number of employees. 36 AVERAGE REVENUES PER EMPLOYEE IN MINING SUPPORT SERVICE ACTIVITIES IN 2014 SECTOR AVERAGE NET AVERAGE AVERAGE NUMBER OF SALES OPERATING TOTAL EMPLOYEES REVENUE REVENUE REVENUE (BGN) (BGN) (BGN) SUPPORT ACTIVITIES FOR OTHER 74,067 85,094 85,720 329 MINING AND QUARRYING SUPPORT ACTIVITIES FOR 52,361 99,444 111,417 36 329 PETROLEUM AND NATURAL GAS EXTRACTION

AVERAGE REVENUE PER COMPANY IN MINING SUPPORT SERVICE ACTIVITIES IN 2014 SECTOR AVERAGE NET AVERAGE AVERAGE NUMBER OF SALES OPERATING TOTAL COMPANIES REVENUE REVENUE REVENUE (BGN) (BGN) (BGN) Support activities for other mining and quarrying SUPPORT ACTIVITIES FOR OTHER 974,720 1,119,840 1,128,080 25 Support activities for petroleum and natural gas extraction MINING AND QUARRYING SUPPORT ACTIVITIES FOR 117,813 223,750 250,688 16 PETROLEUM AND NATURAL GAS When it comes to employees the sizes of firms vary. Some 22 EXTRACTION have less than 50 employees, 2 fall in the 50 to 250 range *.

The total indebtedness of the companies in the Mining * Companies without data in the number of employees at end of the year are not support service activities industry was BGN 204,766,000 taken into consideration. versus BGN 178,092,000 a year ago. In 2012 the industry's indebtedness totalled BGN 99,892,000. 18 17 INDUSTRY'S INDEBTEDNESS BY SECTORS (BGN) 16.5 SECTOR 2014 2013 2012 15 SUPPORT ACTIVITIES FOR PETROLEUM 176,389,000 156,937,000 77,905,000 AND NATURAL GAS EXTRACTION 13.5 SUPPORT ACTIVITIES FOR OTHER MINING 28,377,000 21,155,000 21,987,000 AND QUARRYING 12 10.5 Debt-to-assets ratio of the companies in the industry is 1.15 in 2014. It was 1.17 in 2013 and 0.83 in 2012. 9 7.5 VI. EMPLOYMENT 6 4.5

A total of 365 people were employed in the Mining support 3 service activities market at the end of 2014, compared to 244 1.5 1 in 2013 and 201 in 2012. Small Medium Big NUMBER OF EMPLOYEES BY INDUSTRY SECTORS SECTOR NUMBER SHARE OF INDUSTRY The employees of the leading 10 companies in terms of TOTAL numbers make up 92.88% of the workforce in the industry in SUPPORT ACTIVITIES FOR OTHER MINING AND QUARRYING 329 90.14% 2014. SUPPORT ACTIVITIES FOR PETROLEUM AND NATURAL GAS 36 9.86% EXTRACTION TOP 10 FIRMS BY SHARE IN INDUSTRY'S TOTAL NUMBER OF

EMPLOYEES RANK COMPANY NUMBER OF SHARE EMPLOYEES 1 GEOPS-BOLKAN DRILING SERVISIS EOOD 149 40.82% 2 MINNA KOMPANIYA PETROV AD 111 30.41% 3 MINERALI INDUSTRIALI BULGARIA OOD 21 5.75% 4 KAT TEH SARVISIS YUGOIZTOCHNA EVROPA 13 3.56% EOOD KCHT 5 GEODRIL OOD 10 2.74% 6 PE VA KOMERS EOOD 9 2.47% 7 BULGARGEOMIN LTD DZZD 8 2.19% 8 DAYREKT PETROLEUM BULGARIA EOOD 7 1.92%

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9 EKO ANTRATSIT EAD (FORMERLY KNOWN AS 6 1.64% ANTRA AD) 10 PROEKTNA KOMPANIYA NEFTOPROVOD 5 1.37% BURGAS-ALEKSANDRUPOLIS BG EAD

The Mining support service activities industry is the 80th largest employer in the country with 365 employees with the largest employer being Retail trade, except of motor vehicles and motorcycles with 204,297 and Libraries, archives, museums and other cultural activities at the bottom with 66 employees.

The Mining support service activities's share in the country's total employment was 0.02% in 2014, 0.01% in 2013 and 0.01% in 2012.

We expect, based on the trend in the last three years, the number of employees of the Mining support service activities industry to change at a compound annual growth rate (CAGR) of 34.76% in 2015.

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The industry is represented by the following companies

SIM STROY GRUP OOD ALFONS 63 OOD UNIVERS M EOOD KOYNARE DEVELOPMENT BULGARIA EOOD NARUMAN OOD NELIK INVEST EOOD PROEKTNA KOMPANIYA NEFTOPROVOD BURGAS- ALEKSANDRUPOLIS BG EAD EKO ANTRATSIT EAD (FORMERLY KNOWN AS ANTRA AD) DAYREKT PETROLEUM BULGARIA EOOD SREDIZEMNOMORSKI MINERALI /BULGARIA/ EOOD IKORP ENERDZHI LIMITED-KLON BULGARIA KCHT BALGARSKA NEFTENA KOMPANIYA EOOD EOOD RAHOV GRUP MINNA KOMPANIYA PETROV AD PE VA KOMERS EOOD GEODRIL OOD OSOGOVO 2012 EOOD LAKI-2006 AD GRUPA ZA NAUCHNI IZSLEDVANIYA I SERVIZ AD SI DI SEND EOOD MARIYN RISORSIS EKSPLOREYSHAN INTERNESHANAL EOOD NANOPAUAR OOD GEOPS-BOLKAN DRILING SERVISIS EOOD MINERALI INDUSTRIALI BULGARIA OOD KERAMIKA ASPIDA OOD REPSOL BULGARIA B.V. KLON BULGARIA KCHT UNITEH M OOD PARK PLEYS ENERDZHI KORP. - KLON BULGARIA TSELZIAN OOD IZTOCHNI RESURSI OOD STROY-LES-SPED OOD BIMIN OOD DZHEY KEY EKS BULGARIA LIMITID-KLON DZHEY KEY EKS BULKAN BG GEOMAKS BULGARIA EOOD AHARNON EOOD KAT TEH SARVISIS YUGOIZTOCHNA EVROPA EOOD KCHT BULGARGEOMIN LTD DZZD TP UEDARFORD INTERNESHANAL IYSTARN YURAP NABUKO GAZ PAYPLAYN BULGARIA EOOD- V LIKVIDATSIYA BI DZHI EKSPLOREYSHANS EOOD 10 SeeNews Industry Report

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