INVESTMENT DESTINATION

2020/2021 INVESTMENT DESTINATION PLOVDIV

PUBLISHED BY PLOVDIV MUNICIPALITY

COPYRIGHT 2020 PLOVDIV MUNICIPALITY WELCOME TO PLOVDIV

‣ Plovdiv is the biggest industrial center of with over 74 000 jobs in .

‣ Trakia Economic Zone hosts over 200 multinational and local producers. Zdravko D"m"trov Mayor of Plovdiv ‣ A local economy with predominant business profile – close to 70% of all value added is created in As the mayor of Plovdiv, I am proud manufacturing and B2B services. to introduce the 2020 edition of the “Investment Destination Plovdiv” ‣ IT&BPO are the fastest growing catalogue. sectors - outnumbering 7000 jobs This may be your first encounter and a 10,6% annual growth of with Plovdiv or you may be update productivity. previously known facts about the ‣ City’s pool of talent is steadily region. In any case, it is just the first expanding - about 34 000 step of a journey that I and my team students, positive migration will join you in. balance, growing expat community.

1 TABLE OF CONTENTS

KEY FACTS 1 WHY CHOOSE PLOVDIV, BULGARIA

DOING BUSINESS IN BULGARIA 2 ECONOMIC FREEDOM IN A RISING EU MEMBER

INVESTOR INCENTIVES SINGLE POINT OF CONTACT FOR AN EASY SETUP 3 OF OPERATIONS

LOCAL ECONOMY ONE OF THE BIGGEST MANUFACTURING CLUSTERS 4 IN CENTRAL & EASTERN EUROPE

LABOR MARKET POSITIVE NET MIGRATION FUELS AN EXPANDING 5 POOL OF TALENT

MANUFACTURING GROWTH DRIVEN BY AUTOMOTIVE & OTHER 6 DISCRETE MANUFACTURING SECTORS

2 MAJOR INVESTORS LIST OF MULTINATIONAL & LOCAL INDUSTRIAL 7 COMPANIES

EDUCATION DIVERSE ECOSYSTEM OF HIGH SCHOOLS AND 8 UNIVERSITIES

IT&BPO FASTEST GROWING SECTOR ATTRACTS GLOBAL 9 TALENT TO THE CITY

PROPERTY MARKET NETWORK OF WELL DEVELOPED INDUSTRIAL 10 PARKS AND OFFICE CENTERS

PUBLIC SERVICES 11 FAST IMPROVING UTILITIES INFRASTRUCTURE

QUALITY OF LIFE AFFORDABLE COST OF LIVING AND RICH 12 POSSIBILITIES FOR SPORTS & LEISURE

3 KEY FACTS BULGARIA IS A 1.1 MEMBER OF:

EUROPEAN UNION SINCE 2007

ERM II & HAS A FIXED RATE TO €

EU BANKING UNION SINCE 2020

NATO SINCE 2004

Vienna 1 156 km Bucharest 386 km Danube River

VII IX

Munich Port of Russe 313 km 1 480 km Varna Port 368 km IV X

VIII Airport 146 km Port 256 km

PLOVDIV Istanbul 419 km Durres (Ferry to ) 700 km Port of Haydarpasa 424 km Thessaloniki Port 334 km Alexandroupoli Port 237 km

4 KEY FACTS 1.2 WHY PLOVDIV?

CENTER OF А REGION WITH A HIGH QUALITY OF LIFE AND GREAT POPULATION OF 770 000 AND WORK-LIFE BALANCE 18 000 EXPATS

#1 INDUSTRIAL LEADER IN HIGHLY DEVELOPED CLUSTER OF BULGARIA WITH OVER DISCRETE MANUFACTURERS 74 000 JOBS

LEADING UNIVERSITY CENTER INTERNATIONAL SPOTLIGHT FOR WITH OVER 34 000 STUDENTS INVESTORS AND DIGITAL NOMADS

SINGLE POINT OF CONTACT AND SECOND BIGGEST IT CENTER WITH AN ALL-IN SERVICE PACKAGE FOR SOME 7000 JOBS INVESTORS

AMONG TOP 10 MID-SIZED CITIES WITH BEST FDI STRATEGY AND COST-EFFECTIVENESS fDi Intelligence

5 DOING BUSINESS IN BULGARIA 2.1 MACROECONOMIC NUMBERS €60.7 billion 3.4% 70.1% GDP CHANGE EMPLOYMENT RATE GDP

€38.6 €36.5 124% billion billion EXPORTS AND IMPORTS EXPORTS IMPORTS (as % of GDP)

ERM II THE LAST STEP BEFORE ACCEPTING THE EURO Bulgaria is expected to join the Eurozone in 2023

BANKING UNION HELPS TO CREATE A MORE TRANSPARENT, UNIFIED AND SAFER MARKET FOR BANKS Allows for the consistent application of EU banking rules

€ FIXED EXCHANGE RATE SINCE 1997 To stay in place until Bulgaria joins the Eurozone

Governments maintain fiscal policy with low deficits or even surpluses

20.4% 2.1% 3.1%

GOVERNMENT DEBT BUDGET SURPLUS INFLATION (as % of GDP) (as % of GDP) 2nd lowest in EU 3rd highest in EU

Source: NSI, BNB, Eurostat, 2019

6 DOING BUSINESS IN BULGARIA 2.2 INVESTMENT CLIMATE

10% 34.8% FLAT CORPORATE & TAXES ON LABOR AS % 5% PERSONAL INCOME OF LABOR COSTS WITHHOLDING TAX TAX RATE ON DIVIDENDS DISTRIBUTED TO NON EU/EEA 20% €18 400 COMPANIES MAXIMUM ANNUAL VAT SOCIAL SECURITY BASE

37TH (out of 162) ECONOMIC FREEDOM OF THE WORLD Fraser Institute, 2019

21ST (out of 190) TRADING ACROSS BORDERS DB Index 2020, World Bank

49TH (out of 141) GLOBAL COMPETITIVENESS INDEX World Economic Forum, 2019

Cost of enforcing contacts (% of claim)

18.6% 21.5% 26.6% OECD EUROPE & BULGARIA high income CENTRAL ASIA

Source: Doing Business database, 2020

7 INVESTOR 3 INCENTIVES

Financial incentives representing regional state aid

FINANCIAL SUPPORT FOR CONSTRUCTION OF TAX RELIEF TECHNICAL INFRASTRUCTURE ELEMENTS (used exclusively by the investor)

FINANCIAL SUPPORT OF UP TO 25% FOR THE PROVIDING A GRANT OF UP TO 10% OF THE VOCATIONAL TRAINING FOR OBTAINING TOTAL INVESTMENT COST PROFESSIONAL QUALIFICATIONS

ACQUIRING OWNERSHIP RIGHTS OR LIMITED REIMBURSEMENT OF LABOR COSTS OWNERSHIP RIGHTS OVER REAL ESTATE AT A PAID BY THE EMPLOYER FOR A PERIOD OF PRICE LOWER THAN THE MARKET UP TO 2 YEARS (but not lower than the tax assessment)

INTRODUCING EXEMPTION FROM THE IMPORTING ASSETS WITHOUT EFFECTIVE OBLIGATION OF PAYING AN AGRICULTURAL PAYMENT OF IMPORT VAT LAND TRANSFORMATION FEE

Construction of public infrastructure elements, that can also be used by other investors, is not considered a regional state aid

Non-financial incentives

INDIVIDUAL ADMINISTRATIVE AND ADMINISTRATIVE PROCEDURES SHORTENED INFORMATION SERVICES

INTERDEPARTMENTAL TASK FORCE FOR ACQUIRING REAL ESTATE WITHOUT TENDER INSTITUTIONAL SUPPORT PROCEDURE OR COMPETITIVE BIDDING

ESTABLISHMENT OF PUBLIC-PRIVATE PARTNERSHIPS WITH MUNICIPALITIES, UNIVERSITIES AND OTHER ORGANIZATIONS

8 Maximum financial incentives intensities under European Commission regulation

For projects with expenditures 50% below €50 million OF THE TOTAL INVESTMENT COST

MAXIMUM AID AMOUNT = For projects with expenditures 50% x (50 + 0.5xB + 0.34xC) above €50 million B is the part of eligible costs between €50-100 million C is the part of eligible costs above €100 million

MAXIMUM AID AMOUNT = Example: OEM with 500 million 50% x (50 + 0.5x50 + 0.34x400) = total investment cost €105.5 million

Thresholds for special investment status

Priority Class A Class B

€25.6 €5.1 €2.6 million million million

Plovdiv Municipality provides investors a ✔ single point of contact & an all-in package ✔ ✔ of services, including preliminary ✔ researches and consultations, staff recruitment support, local media promotion, etc.

In the coming years Plovdiv municipality will implement projects making the industrial parks easily accessible & faster, including:

✓ Modernizing the railway to support high-speed international trains ✓ Completion of the road, which connects Plovdiv & nearby villages in the Rhodope area ✓ Completion of the Plovdiv ring road ✓ Construction of a road underpass under the Plovdiv Railway station

9 LOCAL ECONOMY 4.1 VOLUME & STRUCTURE

South-central Plovdiv district region Bulgaria

TURNOVER €14.3 €20.2 €150.4 billion billion billion

OUTPUT €8.8 €13.7 €92.5 billion billion billion

NUMBER OF 222 401 2320 JOBS thousand thousand thousand

Plovdiv has a well developed business service sector, which provides all the high-quality services a manufacturing company might need

Local economy structure (by added value)

0 IT, BPO & B2B 27.9% 0 Public services & regulated markets 11.9%

Consumer services 10.8% Manufacturing 0 39.9% Construction 5.5%

0 Others 4.1% 0

Source: Trakia Economic Zone based on NSI (data on district level for 2018)

10 LOCAL ECONOMY INVESTMENTS & 4.2 PRODUCTIVITY

€4.5 €6700 6.6% billion ANNUAL GROWTH GDP PER CAPITA GDP (2010-2018 average)

Rise of productivity €319 million €953 is ensured by million CUMULATIVE FDI FIXED CAPITAL abundant capital EXPANSION FOR THE EXPENDITURES IN 2018 investment LAST 3 YEARS

Source: NSI (data on district level for 2018)

Industrial space & warehouse construction enhance the rapid development of Plovdiv as a manufacturing leader and logistics hub

430 000 m2 557 000 m2 (4.6 million ft2) (6 million ft2) APPROVED FOR APPROVED FOR NON-HOUSING HOUSING CONSTRUCTION IN 2019 CONSTRUCTION IN 2019

16.2% 13.5% OF ALL PERMITS IN THE OF ALL PERMITS IN THE COUNTRY COUNTRY

Source: NSI (data on district level for 2019)

11 LABOR MARKET 5.1 POPULATION

772 000 45 MIN. FROM INDUSTRIAL ZONES

535 000 30 MIN. FROM DOWNTOWN

Population by age in wider Plovdiv (distance 45 min.)

Under 20 20-44 45-64 65-74 75+

151 000 247 000 213 000 91 000 70 000

Plovdiv has the biggest net annual 7500 1800 change among the NEW INHABITANTS NET ANNUAL CHANGE (city) (city) Bulgarian cities, besides the capital

6.3‰ 17 900 3300 NET MIGRATION EXPATS INTERNATIONAL 10-29 YEARS (residing in the district STUDENTS (district) for more than 3 months)

Source: Data from universities, Ministry of interior, NSI, 2019

12 LABOR MARKET 5.2 WORKFORCE

More than any +17 900 70.3% (15-64 years) other region in the WORKFORCE GROWTH EMPLOYMENT RATE country SINCE 2010 (EU average: 68.5%)

Source: NSI (data on district level), Eurostat, 2019

Local economy structure (by number of jobs) 49 800 Plovdiv is the region IT, BPO & B2B 49 800 with most people 36 400 working in Consumer services 36 400 manufacturing companies in Construction 11 400 221 800 Bulgaria payroll jobs 11 400 Others 6300 6 300 Manufacturing74 700 Public services & 74 700 regulated markets 43 200

43 200 53 600 38 200 313 600 PART-TIME FREELANCERS & TOTAL EMPLOYMENT EMPLOYEES FAMILY WORKERS

Industrial labor pool in closest districts

Stara Zagora Pazardzhik Haskovo

35 900 21 400 14 900

Source: NSI (data on district level for 2018)

13 MANUFACTURING INDUSTRY 6.1 SNAPSHOT

Discrete manufacturing as % of manufacturing employment

2018 2010 The foreign capital 70% 64% 65% inflows are shifting from58% 47% 47% 63% 47% 41% 57%

mass production to a 35% 38% 38% “leaner” and in some 23% 32% cases craft custom and12% 0% small series productions Plovdiv Bulgaria Romania Slovakia

Source: Trakia Economic Zone with NSI and Eurostat data for 2010-2018

Change in number of jobs for the past 8 years

Discrete manufacturing Other manufacturing Non-manufacturing sectors

+10 300 -1000 +4100

Share in discrete Discrete Share in local manufacturing at manufacturing Volume manufacturing national level

FIXED-CAPITAL €132.8 EXPENDITURES billion 42.9% 16.2%

OUTPUT €1.9 billion 40.1% 17.6%

NUMBER OF 35.4 JOBS thousand 47.4% 15.7%

Source: Trakia Economic Zone with NSI and Eurostat data for 2018

14 Structure of manufacturing (by number of jobs)

Plovdiv district has a well-developed ecosystem of discrete manufacturing such as machine-building, automotive, home appliances, electronics, medical equipment, etc. 13 700 Food, beverages & tobacco 13 700 10 700 Discrete manufacturing Apparel 10 700 35 400 Heavy processing (basic metals, chemicals, glass) 6700 74 700 6 700 Light processing (paper, textile) 5700

5Furniture, 700 wood & 35 400 others 2500 2 500

Source: Trakia Economic Zone based on NSI (data on district level for 2018)

Plovdiv is #1 industrial center in Bulgaria The local economy advances in its development through investments in discrete manufacturing & creation of more productive jobs

Manufacturing Turnover Output Number of jobs

€5.2 VOLUME €4.8 billion billion 74 700

SHARE IN LOCAL ECONOMY 36.3% 54.9% 33.7%

Source: NSI (data on district level for 2018)

15 MANUFACTURING 6.2 WAGES

Wages in manufacturing in Plovdiv, €/Month (2021 forecast)

ENTRY LEVEL JOB SKILLED WORKERS

Total labor cost Gross wages POSITION Gross wages Total labor cost

PRODUCTION ASSEMBLY 630 530 WORKER 690 821

714 600 CNC MACHINE OPERATORS 860 1023

WELDERS, LATHE AND METAL 844 710 WORKERS 1130 1344

892 750 ELECTRICAL ENGINEERS 1060 1261

FIRST-LINE MANAGERS, 999 840 SUPERVISORS, TECHNICIANS 1150 1368

951 800 ENGINEERS - CONSTRUCTORS 1230 1463

ENGINEERS - INDUSTRIAL 951 800 MACHINES AND SYSTEMS 1140 1356

Total labor costs include gross wages plus 18.9% mandatory social security contributions paid by the employer Source: Trakia Economic Zone based on survey of net pay among employers

Competitive salaries create Wages in discrete manufacturing = 100 Other manufacturing opportunities for attracting and Non-manufacturing industries qualifying workers from other sectors of the local economy 86.1 88.9

Source: NSI (data on district level for 2018)

16

Join the board in 2020/2021: ei-board.org

17 MAJOR 7 INVESTORS PLOVDIV DISTRICT

Automotive, machinery & electronics

ITW Ispracontrols ABB Bulgaria Milara International Televic Bulgaria Bulgaria

Aiger Engineering Kittner Minipulse Techno Aktas

Andi BG Latecoere Odelo Farba Tomika - Metal

Ataro Klima Leader 96 Osram Viking Life Saving Equipment

Balkancar Record Liebherr Hausgeratte Schneider Electric Watts Industries

Biomashinostroene Liebherr Transportation Sensata Technologies William Hughes Systems

BTL Industries LMP Bulgaria SKF Bearings Willi Elbe

Hannon Systems Maxcom Steca Elektronic Wurth Elektronik

Index - 6 Mecalit Bulgaria Spinner Bulgaria etc.

Industry suppliers

Angel Stoilov - 96 Dunapack Rodina Kalcit Profilink

Asel Fort Kam 99 Roza Email

Assenova Krepost Gotmar Kaskada Schatti Bulgaria

BA Glass Bulgaria Gudex KCM Stratus

Bulltek HIK-91 Mondi Stamboliiski Technomontage

Cast Futura HMC Moni MG Tempodem

Chugunoleene - Hus Pentax Medical Yuriy Gagarin Bulgaria

Complex Industrial Intrama Philcab ZBE Service

Diko ITD Poligroup etc.

18

CLOSEST REGIONS TO PLOVDIV (less than 100 km)

Automotive, machinery & electronics

Micro View Endoscopie Ariete Caproni Standard Profile Optik

Donido Machine Arkomat MM Mechanics Stimex Industry

Varroc Lighting Autoelectric Bulgaria Ectron M+S Hydraulics Systems

Badeshtnost Elhim Iskra Oskar Ruegg Bulgaria Veas Bulgaria

Hraninvest- Videoton Bulgarian Bonner Pim Hranmashkomplekt Holdings

BRB-Engineering Kolowag Rais Yazaki Bulgaria

Bultech - 2011 Kostal Rodina Haskovo Zavod za Optika

Bunay Micro Optics Europe Scholly Optics etc.

Industry suppliers

Asarel Medet Guala Closures MM Mechanics Superabrasive

Astroida Kauchuk Panchim Technoengineering

Ate Plast Kolovag PFB Preso Fondal Tron

Bulhart Matrix Pack Preskov VMZ

DS Smith Metalic Progress Zavod za Pruzhini

Ecoinvest Metalicа Promet Safe etc.

Beside a well developed cluster of automotive and machine building companies, as well as their suppliers, Plovdiv hosts some of the biggest food & beverages producers in Bulgaria including Kamenitza, OMK, VP Brands, Nova Trade, Simid, Dimitar Madzharov, etc.

19

8 EDUCATION

29 37 23 300 VOCATIONAL HIGH GENERAL HIGH STUDENTS IN SCHOOLS SCHOOLS HIGH SCHOOLS

of which

7 78 9800 FOREIGN LANGUAGE & VOCATIONAL TRAINING IN STEM FIELDS MATH HIGH SCHOOLS CENTERS

Source: Regional Department of Education, МоЕ, NAVET (data on district level for 2019/2020)

In the school year 2019/2020, in Plovdiv there were 24 dual education classes, financed by 31 companies.

2200 VOCATIONAL HIGH SCHOOL GRADUATES

2300 GENERAL HIGH SCHOOL GRADUATES

7400 UNIVERSITY GRADUATES

Source: NSI (data on district level for 2019)

20 Students enrolled in technical studies

9 Information Technologies 1920 UNIVERSITIES Communication & Computer Technologies 1090

Mechanical Engineering 930

33 900 Electrical Engineering, 630 STUDENTS Electronics & Automation

General Engineering 520

Energy Studies 230 3300 Transport, Navigation & Aviation 220 FOREIGN STUDENTS TOTAL 5540

A huge boost for the higher education will be the Center for plant systems biology and biotechnology that is currently being built and is worth over €15 million

Top 5 biggest universities in Plovdiv

University Number of students Major fields

Business services; Language studies; PLOVDIV UNIVERSITY 14 300 Information technology & computer science

MEDICAL UNIVERSITY OF Medicine; Dental medicine; Healthcare PLOVDIV 6400

AGRICULTURAL Agronomy; Plant protection UNIVERSITY OF PLOVDIV 3300

UNIVERSITY OF FOOD Food & beverages technologies; TECHNOLOGIES 3300 Machine building

TECHNICAL UNIVERSITY OF Electronics & automation; SOFIA - BRANCH PLOVDIV 2100 Mechanical engineering

Source: Data from universities for 2019/2020

21 IT&BPO INDUSTRY 9.1 ZOOM

A rapidly developing destination for +10.6% +3.6% PRODUCTIVITY EMPLOYMENT international shared service centers, IT companies & customer support +15.8% +12.6% VALUE ADDED TURNOVER centers

*Average annual change for 2010-2018 Source: NSI (data on district level)

Employment in IT&BPO & related business services

Outsourcing & other administrative 7300 Number of jobs in Law, accounting & other consulting 5400 IT&telecom more IT & telecom 4400 than doubled for an Finance & insurance 2100 8-year period

1 000% 267 333% 533 667% 800 000% Source: NSI (data on district level for 2018)

University students in IT&BPO related fields

Finance, accounting Computer Business & legal science management & administration

4000 3000 2400

Students suitable for accounts payable/receivable, legal compliance reporting, payroll, procurement & other financial services

Source: Data from universities for 2019/2020

22 IT&BPO ATTRACTING GLOBAL 9.2 TALENT

Over 17 900 foreigners residing in the district for more than 3 months

EU citizens

LONG-TERM RESIDENCE VALIDITY UP TO 5 YEARS (issued for 24 hours)

PERMANENT RESIDENCE ISSUED AFTER THE INITIAL PERIOD

SOCIAL SECURITY SCHEMES BETWEEN TRANSFERABLE COUNTRIES

NO RESTRICTRIONS ON BUYING PROPERTY

NATIONAL DRIVER'S LICENSE VALID THROUGHOUT THE STAY

Residents of over 130 different nations live & work from Plovdiv

Non-EU residents

ISSUED TO PROFESSIONALS WITH VALID WORK EU BLUE CARD CONTRACT & LONG-TERM VISA

EU BLUE CARD VALIDITY UP TO 4 YEARS (issued in up to 7 days)

MANDATORY HEALTH INSURANCE FOR €85 ACCIDENTS AND EMERGENCY TREATMENT

LLC NEEDED TO BUY PROPERTY WITH LAND SHARES

1 YEAR NATIONAL DRIVER'S LICENSE VALIDITY

Source: Trakia Economic Zone, Foreigners in Republic of Bulgaria Act, insurance companies, europa.eu

23 IT&BPO 9.3 ECOSYSTEM

Over 100 IT&BPO companies

60K DNH Soft OptiCentre Speed

Speedflow A Data Pro Elders Orak Engineering Communications Enigma Software ABB SSC ORM.Bg SQA Services Group

Accenture Evolink Outcons Stemo

Adastra Football Radar Plutus BG Strypes

Sutherland Global Amexis Hemisphere Commerce Podix Services

APT Systems Hosting Solutions Prime Holding TechHudle

Arcade Retail ICYGEN Programista Technologica

BGO Software IKOM Proxiad Tellus International

Real Time Games Trio Interactive BPO Bulgaria Infinite Lambda Development International

Broadcom Bulgaria Intech Group Retail Direct TSD Services

BS Technologies InterConsult Bulgaria Reward Gateway TTEC Eastern Europe

Uniqa Software Bulanet IT Academy Risco Group Services

Bulpros Kodar SBTech Global Limited Vertinity Ltd.

Viking Lifesaving Cloudtech m+w Media Networks ScaleFocus Equipment GBS

Code nest Media IT Services Seeburger Viscomp

ConsultCommerce MentorMate SelMatic Visrez

CRA Services Modis Bulgaria SIBIZ VSG Bulgaria

Westernacher DATA+ Niset SIS Technology Consulting

Delta Source Novarto SiteGround etc.

24 PROPERTY MARKET OFFICE 10.1 SPACE

Major office centers IT&BPO companies are a major driver BUSINESS CENTRE ANGELOV PIMK OFFICE CENTER of the office market businesscentreangelov.com pimkbuild.bg

CAPITAL CITY CENTER PLOVDIV PLAZA capitalcitycenter.bg plovdivplaza.bg

2 CAPITAL TRADE CENTER REGUS 9-12 €/m capitaltradecenter.bg regus.bg MONTHLY RENTS FOR KAMENITZA OFFICE PARK RILON CENTER OFFICE CLASS A kamenitzapark.bg rilon-center.business.site

OFFICE PARK PLOVDIV ROYAL CITY BUSINESS PARK officeparkplovdiv.com galaxy-bg.com 4-6 €/m2 Major co-working places MONTHLY RENTS FOR OFFICE CLASS B CAT & MOUSE COWORKING JI4KA catandmouse.bg ji4ka.com

COLORKING REGUS Source: Trakia Economic Zone colorking.com regus.bg

Rents of prime office space Rents of class "B" office space

€/sq. m./month €/sq. m./month Plovdiv / Bulgaria 10 Plovdiv / Bulgaria 5 Bratislava / Slovakia 16 Sofia / Bulgaria 10 Sofia / Bulgaria 16 Bratislava / Slovakia 14 Bucharest / Romania 18 Bucharest / Romania 14 / Czechia 23 Budapest / Hungary 16 Budapest / Hungary 24 Prague / Czechia 16 Warsaw / Poland 26 Warsaw / Poland 21 / Germany 40 Berlin / Germany 31

0 7 13 20 Source:27 33 Colliers,40 H2 2019 0 7 13 20 27 33 40

25 PROPERTY MARKET INDUSTRIAL 10.2 ZONES

Rents of warehouse space €/sq. m./month 25-40 €/м2 Plovdiv / Bulgaria 4.0 PRICE OF LAND FOR Bucharest / Romania 4.2 INDUSTRIAL USE Sofia / Bulgaria 4.7 Bratislava / Slovakia 4.7 Prague / Czechia 4.8 Warsaw / Poland 4.9 2700 acres Budapest / Hungary 5.0 LAND FOR Berlin / Germany 8.3 INDUSTRIAL USE

Source: Colliers,0 2 H2 20194 5 7 9

Industrial & tech parks Worth of investment MARITZA INDUSTRIAL ZONE Over €2 billion 1 tez.bg

AGRO CENTER KALOYANOVO 2 tez.bg

RAKOVSKI INDUSTRIAL ZONE 3 2 tez.bg 3 Burgas Port 4 262 km HIGH-TECH PARK INNOVATIONS 4 tez.bg E80 1 INDUSTRIAL PARK PLOVDIV 131 km 5 tez.bg CYTY OF PLOVDIV Intermodal KUKLEN INDUSTRIAL ZONE 5 6 Terminal tez.bg

LOGISTIC INDUSTRIAL PARK Istanbul 8 419 km 7 RODOPI 7 6 lip-rodopi.com Plovdiv Airport INDUSTRIAL PARK MARKOVO 8 industrialparkmarkovo.com

26 TRAKIA ECONOMIC ZONE Carbon neutral ECO INDUSTRIAL PARK by 2030

GREEN INFRASTRUCTURE & SERVICES

Renewable Energy Water & Waste Management Smart Buildings Construction Electric Transport Data Center

ECO SMART FACTORIES • Efficient • Competitive • Sustainable

Knowledge Process Outsourcing Industrial Internet of Things Prototyping & 3D Printing Data Science Services

TECHNOLOGY ECOSYSTEM

Applied Research Center ● Universities StartUp Accelerators ● Tech Vendors

27 PUBLIC SERVICES ACCESS TO 11.1 UTILITIES Electricity

Annual consumption 20 500 2000 20 000 70 000 150 000 150 000+ in mWh, up to

Final price, incl. VAT, 0.125 0.114 0.104 0.099 0.093 0.082 0.079 EUR/kWh

Source: NSI, H2 2019

Industrial users benefit from the expanding liberalized market of electricity

Natural gas

Annual 1000 10 000 100 000 1 000 000 4 000 000 consumprion in GJ

Final pice, incl. VAT, 12.646 11.599 10.147 8.571 7.946 EUR/GJ

Source: NSI, H2 2019

Plovdiv is on the route of both an international and a national transit gas pipeline

Water and sewage

Level of contamination I II III

Final price, incl. VAT, EUR/m3 1.190 1.350 1.510

Source: Water&Sewage Plovdiv, 2020

In 2020-2021 projects worth over €100 million will be implemented in wider Plovdiv for reconstruction and rehabilitation of the water supply grid and waste-water collector.

28 PUBLIC SERVICES LOCAL TAXES 11.2 & FEES

Plovdiv city Industrial zones

Property tax 0.18% 0.15%-0.26%

Waste fee per quantity or 0.53% per quantity

Source: Municipalities Plovdiv, Maritza, and Kuklen, 2020

Example calculation

€2175 PROPERTY TAX NEW INDUSTRIAL PLANT in Maritza industrial zone with 4500 m2 (48 500 f2) built up area & €2900 €1 450 000 tax valuation WASTE FEE

When choosing to €27 €6 pay according to PER CONTAINER PER PER CONTAINER PER quantities of waste, COLLECTION COLLECTION the company pays annually another 0.2% on the property Bigger containers Smaller containers (1100 liters / 290 US gallons) (240 liters / 63 US gallons) tax base

Source: Maritza Municipality, 2020

29 QUALITY OF LIFE SPORTS & 12.1 RECREATION

16 STADIUMS & MULTI-SPORT CENTERS

65 SPORT HALLS & FIELDS 40+ SPORT EVENTS & 132 COMPETITIONS SPORT CLUBS

300 52 km 2200 m SUNNY DAYS BIKE LANES REGATTA VENUE

2190 3 76 acres HILLS FOR HIKING IN PARKS & GARDENS PUBLIC GREEN SPACES THE CITY CENTER

Source: Plovdiv Municipality

Average Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Low in ºC 0 1 3 8 12 15 17 17 14 10 5 1 High in ºC 8 9 13 19 24 27 30 30 26 21 15 9

Low in ºF 32 34 37 46 54 59 63 63 57 50 41 34 High in ºF 46 48 55 66 75 81 86 86 79 70 59 48

Source: meteoblue.com

30 QUALITY OF LIFE CHILDCARE & 12.2 MEDICAL SERVICES

59 2 MUNICIPAL KIDS & 1 KINDERGARTENS YOUTH CENTERS INTERNATIONAL SCHOOL (providing Cambridge primary curriculum & IB diploma 49 2 programme) SCHOOLS PROVIDING COMMUNITY CENTERS PRIMARY EDUCATION FOR KIDS WITH SPECIAL NEEDS

All public schools have successfully integrated the cloud-based services of G Suite for Education and Office 365

Source: Plovdiv Municipality

The city has well-developed Per 10 000 inhabitants medical services with a high Doctors Dentists density of specialists 82 23

174 €160 23 PER YEAR VOLUNTARY CLINICS & OTHER HOSPITALS PRIVATE HEALTH HEALTH CARE FACILITIES INSURANCE

Source: NSI (data on municipality level for 2019), insurance companies

New projects worth over €9 million are currently being implemented in the city of Plovdiv for the construction and renovation of schools, kindergartens and nurseries (over BGN 18 million).

31

Plovdiv Municipality

4th Annual Forum

Industry Automotive as the next engine of growth

3 october 2019 Hotel Imperial Plovdiv Book your ticket capital.bg/industry32

Call for Partnerships [email protected] QUALITY OF LIFE COST OF 12.3 LIVING

Typical prices in Plovdiv for everyday things Cost of living in LUNCH MENU €5.10 selected European cities vs. Plovdiv CAPPUCCINO €1.30

DOMESTIC BEER €1.20

PUBLIC TRANSPORT +17% (one-way ticket) €0.51 BUCHAREST

TAXI JOURNEY OF 5 km (3 miles) €2.70

PARKING IN CITY CENTER P €1 (per hour) +54% PRAGUE GYM MEMBERSHIP (monthly fee) €24.90

CINEMA TICKET €6.10

PRIVATE KINDERGARTEN +55% (per month) €231 BRATISLAVA

1-BEDROOM APPARTMENT IN CITY CENTER (rent perm month) €255 AVERAGE BASIC UTILITIES €88 +115% BERLIN INTERNET (1 Gbps connection) €12

Source: Numbeo, 2020

33 QUALITY OF LIFE CULTURE & 12.4 TOURISM

12 best things to do in Plovdiv

Visit the Old Town, See the sunset over which is part of the city at the the UNESCO World archeological complex Heritage tentative list

Enjoy the rich Roman Watch a live concert heritage, with the at one of the world's well-preserved Roman best-preserved stadium, built in Ancient theatres the II century

Feel the Plovdiv vibe in Watch the light & water the creative-industry show at the Singing district Kapana Fountains, situated in (the Trap) Tsar Simeon's garden

Visit a sports Visit the well preserved championship at the multicolour mosaic at multi-sport complex the Small Basilica Regatta venue

Take a walk on the „main Join the Free Walking street“ - the longest Tour - a free sightseeing pedestrian street in tour in English Europe

Take a photo at the Walk along Maritsa Plovdiv Together river in the heart of the monument city

34

500+ 3 6 CINEMAS CULTURAL EVENTS OPEN AIR THEATRES (with 25 screens)

50+ 2 13 MUSEUMS & GALLERIES 5* HOTELS 4* HOTELS

121 500 +28% 700+ FOREIGN TOURISTS RISE OF FOREIGN CULTURAL SIGHTS IN 2019 (in hotels with 10+ beds) TOURISTS SINCE 2015

Source: NSI, Plovdiv Municipality, Ministry of Tourism, Trakia Economic Zone

Places to visit around Plovdiv

BOROVETS SKI ROSE VALLEY RESORT 60 home of the situated on the 1.5 h. min. exquisite & rare northern slopes Bulgarian rose oil of Rila mountain

Plovdiv 3 h. HISSAR SPA RESORT Downtown with 22 hot mineral 48 NESSEBAR min. springs & rich SEASIDE RESORT archaeological UNESCO World heritage Heritage site

1.5 h. 3 h. 4.5 h. SKI RESORT GREEK SEASIDE ISTANBUL modern network of ski beautiful beaches the city on two runs, lifts, hotels & at the Aegean Sea continents restaurants

35 Main events visitplovdiv.com | plovdiv2019.eu

CONCERTS SPORTS

Balabanov's House Music Days June-July Cycling Tour July

Opera Open June-September Open Chess Championship July Free Outdoor Classical & Jazz Rowing competitions July-October Concerts July-August State Triathlon Championship August Austrian Music Weeks September Swimming Torunament Bulgarian Folklore Festival September Mladost September/November Polinero Rock Fest September Plovdiv Cup Aerobic October Wrong Fest Music Festival September Sport Fishing Tournament October Hills of Rock July 2021 Marathon Plovdiv November

EDUCATION & TECHNOLOGY CRAFTS & EXHIBITIONS

Plovdiv Game Jam January Kapana Bazaar June International Poetry Festival Exhibition "Orpheus" July "Orpheus" September Craft Fair July/September International Technical Fair September Festival "Plovdiv - Ancient & September Literary festival "Plovdiv Reads" September-October Eternal" Annual Business Forum International Photo Salon September „Industry 4.0“ October National Autumn Exhibitions September Career Days "IT, October Communications & Outsourcing" Autumn Salon of Arts September/October European Forum on Social Entrepreneurship October CUISINE & LIFESTYLE European Literature Night October Vinaria Wine Fest February MOVIE & THEATER Plovdiv Food Park Festival June Wine & Gourmet Festival June One Dance Week May-June Car Cinema Under the Stars June Street Food & Music Festival July “Black Box” Contemporary Taste of Plovdiv July/September Dance Festival July Plovdiv Beer Fest September Filippopolis Film Nights Festival July Parade of the Young Wine November Summer Cinema in the Park July Free Puppet Theater STREET FESTS Performances July/August Fluca - Austrian Cultural Include in the Neighbourhood - Pavilion June-October Theater in the Park July/August 6Fest Street Arts Festival July Façade Video Festival September Summer in Kapana July Theatre Festival “Scene at September Crossroads" Kapana Fest August Bulgarian Documentary and Shake That Hill August Animated Film Festival "Golden December Rhyton" Old Town Festival September

36 Explore Plovdiv the ancient city with a modern attitude

We invite you to be #together at the hundreds of small- and large-scale events.

Come and join us. You are more than welcome. You can also be #together with us on:

2019plovdiv Plovdiv2019 European Capital plovdiv2019 plovdiv2019 www.plovdiv2019.eu of Culture CREATING A BUSINESS-FRIENDLY CITY

PLOVDIV MUNICIPALITY

Bulgaria, 4000 Plovdiv, 1 Stefan Stambolov Sq. tel.: +359 32 656 727 fax: +359 32 656 703 web page: invest.plovdiv.bg e-mail: [email protected]