TOP IOO LATIN AMERICAN INTEGRATORS AV INDUSTRY • REPORT 2019 by Latin Press, Inc.

AV Industry Outlook in Latin America 2019

REPORT 2019 ECONOMIC PERFORMANCE AND OUTLOOK KEY ASPECTS OF AV INDUSTRY â&#x20AC;¢ CHARTS THE INTEGRATORS PERSPECTIVES BY REGION TOP 100 INTEGRATORS 2019 RANKING SUCCESS STORIES OF THE INTEGRATORS IN THE TOP 100

All rights reserved. It is not allowed the total or partial reproduction of this work, nor its incorporation into a computer system, nor its transmission in any form or by any means (electronic, mechanical, photocopy, recording or others) without previous and written authorization of the owners of the copyright. Infringement of these rights may constitute an offense against intellectual property. Original title: TOP 100 Integradores industria AV Informe 2019 2nd edition: August 2019 Research and writing: Ana María Mejía Angel AVI Latinoamérica Editor: Richard Santa Editorial Direction: Duván Chaverra Translation: Yasmín López Proofreading and style correction: Craig Alan Cottrell Design and layout: Panamericana Formas e Impresos S.A Printed in Colombia by Panamericana Formas e Impresos S.A

Table of contents Top 100 Integrators in Latin America: How is it done? .................................................4 Introduction ..................................................................................................................6 Chapter 1: Key aspects of the Audiovisual Industry in charts .................................................8 Use and classification of AV technologies ...............................................................9 Segments with More Projects Developed..............................................................10 Most Common Brands ...........................................................................................12 AV Imports by region and company.......................................................................14 AV Imports by origin country .................................................................................15 Chapter 2: The AV Integrators perspectives............................................................16 Mexico ...................................................................................................................17 Central America and The Caribbean......................................................................21 Andean Region.......................................................................................................25 Brazil........................................................................................................................29 Southern Cone........................................................................................................33 The AV Consulting Experts perspectives................................................................35 Chapter 3: Top 100 Integrators 2019........................................................................38 Mexico....................................................................................................................40 Central America and The Caribbean......................................................................42 Andean Region.......................................................................................................44 Brazil........................................................................................................................46 Southern Cone........................................................................................................48 Chapter 4: Success Stories of the first places of the Top 100 Integrators 2019....50 Vosmedia: Bayer Amatitlán corporate offices at Guatemala..................................52 DB Systems: Boston Consulting Group (BCG) corporate offices at Bogota..........53 Seal Telecom: Education and Investigation Institute Insper at São Paulo .............54 ICAP Global: Coca-Cola corporate building at Buenos Aires................................55 Chapter 5: Interview with the first places of the Top 100 Integrators 2019..........56 Mexico: Multimedia................................................................................................57 Central America and The Caribbean: Vosmedia ....................................................58 Andean Region: DB Systems..................................................................................59 Brazil: Seal Telecom................................................................................................60 Southern Cone: ICAP Global..................................................................................61 Chapter 6: Economic Outlook Worldwide and the Americas..................................62 Latin America grows moderately in 2019...............................................................64 Economic Outlook for the Latin American regions................................................67 Mexico, Central America and The Caribbean........................................................68 Infographic: Exports and Trade Balance in Mexico and Central America 2018.....75 Andean Region.......................................................................................................76 Brazil and Southern Cone.......................................................................................80 Index of references......................................................................................................88

TOP IOO INTEGRATORS • REPORT 2019

Top 100 Integrators in Latin America: How is it done? AVI LATINOAMÉRICA highlights once again in 2019 the work of the region’s integrators in favor of the growth of the industry, which is why we took on the task of carrying out, for the sixth year in a row, the Top 100 Integrators with highest RECOGNITION in Latin America.

the nomination made by the manufacturers and distributors of many of the world’s most prestigious Professional AV brands, as as well as a detailed monitoring by the team of AVI LATINOAMÉRICA’s journalists, relying on consultants and expert professionals with extensive knowledge of the industry.

The RECOGNITION ranking was born as an initiative that has also been successfully carried out by other international economic media, which, through information gathered about each company and voting, include some of the most important companies in the region or countries to which they belong.

Subsequently, through a survey conducted online with our readers, the hierarchy and location of the 100 companies in the ranking was determined, divided into 20 companies in Mexico, 15 in Central America and the Caribbean, 25 in the Andean Region, 20 in Brazil and 20 more in the Southern Cone.

Every year we consult several sectors, including manufacturers, distributors, as well as the bulk of our readers (consultants, technicians, end users, operators, among others) throughout Latin America, who finally were the ones in charge to legitimize this work and contribute to the recognition of these companies.

For this hierarchization, differential elements such as years of experience in the industry, certifications, number of employees, headquarters and belonging to industry associations in the region were also taken into account. That is to say, of the total percentage published in the ranking, 60% of the value is given to the number of votes reached and the remaining 40% to the aforementioned differential elements.

It’s important to mention the methodology we used for this report. A complete compilation of information was made in order to consolidate a list of 100 of the most outstanding companies in Latin America, divided into five sub-regions (Mexico, Central America and the Caribbean, Andean Region, Brazil and Southern Cone). For this, it was taken into account

The list includes information on the segments that each company serves and the percentage of recognition. You can also postulate your company by writing to editorial@avilatinoamerica.com.

METHODOLOGY 1

IOO

IDENTIFICATION Mexico 20 AND Central America & the Caribbean 15 Andean Region 25 APPLICATION Brazil 20 COMPANIES OF THE COMPANIES Southern Cone 20

COMPILATION OF INFORMATION FROM COMPANIES

Years of the company Number of employees HQs of the company Associations and / or company certifications

10% 10% 10% 10%

40%

40% corresponds to differential elements of the company

VOTE RECOGNITION

60% survey of Recognition made with readers of AVI Latinoamérica

60%

RANKING AND / OR LOCATION OF BUSINESS INFORMATION ACCORDING TO THE ABOVE VARIABLES

100%

TOP IOO IOO INTEGRATORS INTEGRATORS •• REPORT REPORT 2019 2019 TOP

Introduction The advancement of technologies and innovations for the Latin American audiovisual industry continues in rapid evolution, which, although it’s of immense benefit for AV Integration entrepreneurs, also brings with it important challenges in professionalization and constant technological update, as this industry is increasingly integrated with artificial intelligence systems, Internet of Things, and even Big Data platforms. One of the most mentioned aspects by all the players we consulted for this report, from the consultants to the integrators that made the Top 100, is the need for a greater and more specialized educational offer for the AV industry, not only in the technical aspects, also in “managerial skills, leadership and business skills”, said Martín Saúl, CEO of ICAP Global in Argentina, and Sergio Galindo, general manager of Guatemalan Vosmedia. For his part, Carlos Dalmarco, a Brazilian AV consultant, said that although the AV industry is relatively “small compared to others, it’s increasingly neces-

sary and with bigger demand. Integrators must look for ways to move forward and look to the future”. However, this industry also faces obstacles, mainly in the difficult circumstances of the economies of several Latin American countries, especially the currency devaluation in countries such as Argentina, Colombia and Venezuela, slowdown the growth. However, as will be seen in this report, integrators are able to overcome them and even creating some of the most outstanding projects in the entire region. In this regard, Martín Saúl shared his advice, which he considers controversial: “We must not give into the customer who wants to pay less, because they will always want a cheaper solution. Although the customer knows what he wants, he doesn’t know what it’s needed, that’s why we, the integrators, are the specialists”. As for the global and regional economy, 2019 is a year of economic uncertainties, mainly due to the commercial tensions between the United States and China,

TARGET AUDIENCES

• AV industry entrepreneurs. • AV equipment manufacturers and distributors. • Market analysts and researchers. • Government and financial institutions. • Investors. • AV technology end users.

which caused the UN Economic Commission for Latin America and the Caribbean (ECLAC) to review the Latin American GDP growth prospects for 2018 at 1.2%, projecting a growth of only 1.7% in 2019.

would impact the industry country by country, from the perspective of entrepreneurs that were part of the Top 100 of Latin American AV Integrators ranking, made by AVI Latinoamérica.

This comes to add to the uncertainty surrounding the implementation of economic policies after the 2018 election season in many Latin American countries, which “could discourage investment in the future and undermine the region’s growth prospects”, as said by the International Monetary Fund.

Key industry information, such as figures of imports made by companies in each country, the most used equipment brands in the region, the segments with the highest investment in AV, including sales figures during 2018 of several of the companies are included in this report, along with detailed contact information about the companies that appeared in the ranking in 2019.

However, Latin American trade, despite the difficult moment for the Argentine and Venezuelan economies, which have suffered contractions of -2.6% and -45%, respectively, has continued its growth in 2018, as reported by the World Trade Organization, with exports to September of that year growing 1.1%, and imports with increases of 5.5% in South America. The Top 100 Latin American Integrators – Industry Report 2019 analyzes how this economic outlook

Readers will also find in this report a complete vision of the audiovisual industry in Latin America, along with stories of the Integrators trajectories in the business, successful projects, as well as comments and recommendations on technological trends and investment opportunities, told by the same entrepreneurs interviewed for the creation of this document.

MAIN AV PROJECTS’ SEGMENTS IN LATIN AMERICA

10.0%

CORPORATE 28.0%

COMMERCIAL EDUCATION

10.0%

GOVERNMENT RESIDENTIAL HOSPITAL AND SPORT VENUES

16.7% 15.3% 20.0%

* Source: Survey conducted on an online platform among the integrators of the TOP 100 Latin American Integrators between April 1 and 30, 2019.

TOP IOO INTEGRATORS • REPORT 2019

CHAPTER 1

KEY ASPECTS OF AV INDUSTRY IN CHARTS When asking the integrators about how they would classify existing technologies in Audio, Video and Automation, most of them agreed that analog technologies, such as CD audio, VGA or lamp projectors, are technologies that are becoming obsolete, while they also agreed that almost all automation technologies are the future trends. It’s interesting to note that most integrators didn’t rate most recent technologies as “innovative”, rather as future trends. Even so, its relevant that the integrators consider the transmission of AV signal over IP is an “innovative” technology, in contrast to cloud management services, which they consider a “future trend”. This may indicate that, although integrators are already aware of the digitalization of the industry, there is still a lack of acceptance and confidence in the effectiveness of digital AV.

USE AND CUALIFICATION OF AV TECHNOLOGIES AUDIO

VIDEO Analog Audio

AV over IP Touch and interactive screens

Bluetooth / Wi-Fi Audio AV over IP / Dante

Videowalls

Lamp projectors

Video without integration

Laser projectors

Immersion Audio

Software-based collaborative video

Augmented reality

CD Audio

VGA Analog video 4K and 8K video

TRADITIONAL

OBSOLETE

INNOVATIVE

FUTURE TRENDS

AUTOMATION Cloud administration Video analytics

Relay based systems

BMS

Voice recognition

Network Distribution

Complex programming

Artificial intelligence

Block preprogramming

TRADITIONAL OBSOLETE INNOVATIVE FUTURE TRENDS

* Source: Survey conducted on an online platform among the integrators of the TOP 100 Latin American Integrators between April 1 and 30, 2019

TOP IOO INTEGRATORS â&#x20AC;¢ REPORT 2019

MAIN SEGMENTS OF AV PROJECTS IN 2018 Itâ&#x20AC;&#x2122;s not surprising that the Corporate segment continues to cover most of the participation in audiovisual projects in all Latin American regions, taking into account the analysis made for the first edition of this report that measured 2017 data. However, the decrease in the Commercial and Residential segments is striking, in contrast to the notable increase in the Education and Government segments. Other segments have remained around the same levels and we found that integrators frequently mentioned that theyâ&#x20AC;&#x2122;ve also had projects related to hospitals and sports settings. This strengthening that we observed in 2018, especially in the Government segment, goes hand in hand with the stabilization of the expected uncertainties caused by the election seasons in several countries in 2017, as well as a stabilization of the economy of several countries with the exception of Argentina and Venezuela.

LATIN AMERICA

MEXICO, CENTRAL AMERICA AND THE CARIBBEAN 3.8%

10.0% 10.0%

28.0%

13.5%

26.9%

17.3%

16.7% 15.3%

19.3% 19.2%

20.0%

CORPORATE

COMMERCIAL

EDUCATION

GOVERNMENT

RESIDENTIAL

HOSPITAL AND SPORT VENUES

ANDEAN REGION

10.6% 6.4%

27.7%

BRAZIL AND SOUTHERN CONE

15.7% 29.4% 9.8%

21.3% 10.6% 23.4%

11.8% 15.7% 17.6%

CORPORATE

COMMERCIAL

EDUCATION

GOVERNMENT

RESIDENTIAL

HOSPITAL AND SPORT VENUES

HOSPITAL AND SPORT VENUES * Source: Survey conducted on an online platform among the integrators of the TOP 100 Latin American Integrators between April 1 and 30, 2019. TOP IOO INTEGRATORS â&#x20AC;¢ REPORT 2019

TOP BRANDS IN LATIN AMERICA

AUTOMATION 6.8% 2.3% 2.3% 2.3% 3.0%

MICROPHONES CRESTRON

26.5%

EXTRON KRAMER AMX LUTRON

9.9%

RTI

12.1%

17.4%

CONTROL 4 SYMETRIX

6.0% 1.7% 2.6% 3.5% 4.3% 4.3%

SENNHEISER AUDIO-TECHNICA AKG

34.5%

TAIDEN

10.3%

ARTHUR HOLM

11.2%

OTHERS *

BEYERDYNAMIC ELECTRO VOICE

6.0%

QSC

17.4%

SHURE

15.5%

RODE NEUMMAN

* ATEN, BITWISE, CHRISTIE,

OTHERS *

CUE, FIBARO, LEVITON, ON-

* BIAMP, CLEARONE, DPA,

CONTROLS, SAVANT,

MARANTZ PRO, YAMAHA

SP CONTROLS

AUDIO & VIDEO CONTROLLERS

SPEAKERS & AMPLIFIERS

CRESTRON

13.2%

16.2%

4.1% 4.6%

POLY (POLYCOM-PLANTRONICS) EXTRON

12.2%

5.1% 5.1%

11.7%

5.6% 11.2%

BIAMP

11.2%

KRAMER VADDIO ATLONA DATAPATH CHRISTIE ATEN

BOSE

12.5% 1.9% 3.1% 3.8% 3.8% 6.9% 9.4%

20.6%

QSC HARMAN YAMAHA

14.4% 13.8%

10.0%

JBL

BOSCH ELECTROVOICE DBTECHNOLOGIES APART AUDIO NEXO COMMUNITY

OTHERS *

* AMX, ANALOG WAY, CLEA-

* CRESTRON, DAS, FOCAL,

RONE, HAIVISION, KANEX-

GENELEC, KEF, MEYER

PRO, NOVASTAR, QSC, RGB

SOUND, MONITOR AUDIO,

SPECTRUM, WYRESTORM

SENSEY, SPEAKERCRAFT, TANNOY, TOA, WORKPRO

* Source: Survey conducted on an online platform among the integrators of the TOP 100 Latin American Integrators between April 1 and 30, 2019.

SCREENS & MONITORS 6.9% 2.9% 4.1% 4.6%

LED PANELS LG SAMSUNG

20.8%

NEC SHARP

6.4%

BARCO

6.4%

19.7%

6.9% 8.7%

CHRISTIE PANASONIC SONY

ABSEN

23.7%

CHRISTIE BARCO PLANAR - LEYARD

6.6%

PANASONIC

19.7%

7.9%

DAKTRONICS

10.5%

HITACHI

QSTECH SONY

9.2%

BENQ

12.7%

SAMSUNG

7.9% 2.6% 2.6% 4.0% 5.3%

HPM LED

OTHERS *

* AVOCOR, LEGAMASTER,

* GLOSHINE, KMT, LG,

LEYARD PLANAR, MAX HUB,

LIGHTLINK, OEM

MICROSOFT SURFACE HUB, VIEWSONIC

PROJECTORS

PROJECTION SCREENS 7.5% 2.1% 4.3% 5.3%

DA-LITE DRAPER VUTEC

33.0%

7.5%

BARCO VIEWSONIC PROJETELAS ELITE SCREENS

10.6%

14.9%

EPSON

10.7% 4.4% 5.0%

15.7%

12.6% 12.0%

7.6%

OTHERS *

8.8%

* DRAGONFLY, EPSON, EU-

PANASONIC BARCO

5.7% 7.6%

NEC

HITACHI SONY CHRISTIE CASIO BENQ

10.1%

VIEWSONIC

ROSCREEN, GRANDVIEW, IG,

OTHERS *

NEC, STEWART

* DIGITAL PROJECTION, OPTOMA, SIM2, VIVITEK

MOUNTS CHIEF MIDDLE ATLANTIC

12.8% 2.3% 3.5%

PEERLES AV

34.9%

11.6%

VOGEL’S CRIMSON AV PRIMIER MOUNTS OTHERS *

16.3%

18.6%

* AIRON FLEX, ELG, FOCAL, GAIA, LOCH, NB, PICKENS, SANUS, STRONG AND GENERIC

TOP IOO INTEGRATORS • REPORT 2019

AV IMPORTS BY REGION CENTRAL AMERICA COUNTRY

Costa Rica

Panama

DATES

Jan-Nov 2018

Jan-Dec 2018

COMPANY

MAIN ORIGINS

VALUE IN USD

MASCO INGENIERÍA

Mexico – United States

241,200 CIF

AV GURÚS

United States

178,566 CIF

AXIOMA

United States – Canada

29,235 CIF

INTERACTIVA DOS MIL

United States – China

23,084 FOB

INTECH ENGINEERING

United States

88,845 FOB

ADVANCED TECHNO PRODUCTS

United States

2,990 FOB

ANDEAN REGION COUNTRY

Colombia

Peru

DATES

Jan-Dec 2018

COMPANY

MAIN ORIGINS

VALUE IN USD

AMBIENTES INTELIGENTES

China - Indonesia

746,124 FOB

DATECSA

China

524,015 FOB

VIDEOCORP

China

234,108 FOB

SCHALLERTECH

China – United States

226,779 FOB

CONSTRUCCIONES ACÚSTICAS

China – Germany

126,039 FOB

SEEL

United States

120,540 FOB

AV DESIGN

China – United States

100,607 FOB

GRUPO CSI

China – United States

82,731 FOB

DB SYSTEMS

United States – Japan

53,993 FOB

TELVICOM

China – Japan

783,192 FOB

PLANNING-EST

China – United States

772,835 FOB

LIMA SOUND

China

317,667 FOB

ONE TOUCH SOLUTIONS

Japan – United States

46,786 FOB

SOUTHERN CONE COUNTRY

DATES

Argentina

Jan-Jun 2017*

Chile

Jan-Dec 2018

COMPANY

MAIN ORIGINS

VIDITEC

Japan - China

WULLICH AUDIO VIDEO

France - China

67,470 FOB

ICAP

China – United States

27,808 FOB

PROYECCIONES DIGITALES

China – Malaysia

26,300 FOB

VIDEOCORP

United States

733,749 CIF

DIGITAL CONTROL

United States

79,892 CIF

NOVOTIC

United States

2,873 CIF

FOB (Free on Board) CIF (Cost, Insurance and Freight) *Most recent data available

VALUE IN USD

1,418,315 FOB

Broadly speaking, it’s important to observe that the import figures during 2018 of audio, video and lighting related equipment increased slightly compared to 2017, which can be considered as a positive behavior for the industry, since it reflects a greater demand for the Latin American integrators projects. However, although some companies presented lower import figures than on the previous year, this doesn’t mean that the entrepreneurs have experienced a slowdown in their business, it can simply be an indicator that equipment and tools were purchased through local distributors. Regarding the above, it should be noted that this is a fairly widespread practice, especially in countries where the exchange rate can significantly affect the price of equipment, or because of governments that impose heavy import taxes, as it is the case in Argentina, Brazil and Uruguay. Note: For these charts, only data on imports of AV equipment, such as projectors, screens and monitors, microphones, speakers and amplifiers, and lighting equipment, were taken into account. Imports of parts or spare parts were not included. The complete list of tariff codes analyzed for this chapter can be found in the References Index on page 88.

**Source: Descartes Datamyne with official information

AV IMPORTS BY COUNTRY

MEXICO & CENTRAL AMERICA 0.7% 1.1% 1.2% 1.6%

CHINA MEXICO

1.8% 2.4% 3.7%

UNITED STATES TAIWAN

40.5%

22.5%

HONG KONG INDONESIA PANAMA COLOMBIA

24.5%

THAILAND GERMANY

ANDEAN REGION CHINA

0.6% 0.6% 0.8% 1.0%

MEXICO

1.3% 2.8% 4.2%

UNITED STATES PANAMA

13.8%

NORTH KOREA

46.5%

SPAIN HONG KONG SOUTH KOREA VIETNAM

28.5%

MALAYSIA

BRAZIL & SOUTHERN CONE** CHINA

0.6% 0.7% 0.9% 1.0%

SOUTH KOREA

1.6%

UNITED STATES

7.3% 7.4%

MEXICO HONG KONG

10.2%

VIETNAM

55.5% 14.8%

SPAIN TAIWAN GERMANY JAPAN

**Source: Descartes Datamyne with official information ** Except Argentina, since the most recent data available is from 2017.

TOP IOO INTEGRATORS â&#x20AC;¢ REPORT 2019

CHAPTER 2

PERSPECTIVES BY THE LATIN AMERICAN AV INTEGRATORS For this year, we consulted again with the entrepreneurs of the Top 100 Latin American Integrators 2019 about their results in 2018 and their growth and sales expectations, as well as the trends of the audiovisual industry market for 2019. Some of them also shared some details about outstanding projects they worked on during the past year. We also asked two experts in the Latin American audiovisual industry about their perception of this industry in recent years and the aspects that all actors in this industry should strengthen to boost the growth of their companies during this year and in the immediate future.

Mexico

Aplitec Ingeniería

Audity

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Over 18 large-scale projects and about 25 mediumsized projects.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? 125 projects.

José Luis Olvera Managing Director

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 1.8 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We renewed the audio systems of seven airports in the Mexican Republic in the record time of two and a half months. The project consisted of changing processing, microphones and amplification systems and, in some cases, speakers replacement. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? The main office is in Cancun, we have a branch in Mexico City and a newly opened office for support and projects in Puerto Vallarta. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? The Maya Riviera, Campeche, Mexico City and neighboring states, Puerto Vallarta and Tijuana. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019: There are very interesting projects in the hospitality sector in Mexico, and we’ve also been invited to participate in other projects in the Caribbean.

Ernesto Xavier Guerrero Sales Director

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 388,920. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We carried out the design and installation of a smart home in Mazatlan in the state of Sinaloa, a project with a value of USD 108,000 where we implemented the design and installation of automation systems, multi-zone audio, lighting control, DJ booth, CCTV and alarms. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? The main office is in Guadalajara and we have a showroom in Aguascalientes. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Guadalajara and Aguascalientes. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019: We have a 30% growth goal, for the corporate, commercial and residential markets, in that order. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? We work with Dextra and Syscom located in Guadalajara, and Exteudio in Mexico City.

TOP IOO INTEGRATORS • REPORT 2019

THE INTEGRATORS PERSPECTIVES

AV Prestige

Alfonso Miguel Vélez Director • HOW MANY PROJECTS DID YOU WORK ON IN 2018? We had 16 projects: seven in commercial and nine in residential.

Centro de Audio, Video y Comunicaciones Manuel Carselle Director

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Approximately 155 projects.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 1,158,000.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 3 million.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We worked in the Mobile Classroom of Volkswagen Group Academy Mexico. A space for training sessions was designed equipped with an interior screen that functions as an interactive screen, ten tablets, Internet connection, two exterior screens and ten ergonomic chairs, along with a power plant and in compliance with the safety standards, including smoke detector, two emergency exits and fire extinguishers.

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? Mexico City.

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? We have offices and a showroom in Puebla. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? In the city of Puebla. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We seek to position the home automation technology in the vertical market, as well as address the educational system with streaming solutions and the restaurant sector with digital signage solutions. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? We work in Mexico City with Representaciones de Audio, Ampere Manufacturas Equipos y Cintas, and Novotech; in Guadalajara with Fibaro México; and in Monterrey with Intéligos.

• IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Mexico City, Guadalajara and Monterrey. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: Maintaining the same level we reached in 2018. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? We work with Ingram, Dextra, Intéligos, Representaciones de Audio and Almacenes Audiovisuales.

Grupo ACT

Kolo

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Around 50 projects, with over 250 installations.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Approximately 50 projects.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 6.5 million.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 10 million.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: Our flagship project is the commission of over fifty Federal Oral Trial Rooms (Salas de Juicios Orales Federales, in Spanish), a project that we mentioned in this report last year and that continued to grow in size and cost this year. We also worked on the assembly of the 4K movie theater at the Tecnológico de Monterrey (ITESM) university.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We worked at the Paseo Interlomas, a project that was awarded this year with the Apex Award for the best installation on public roads. The Paseo Interlomas is a shopping center in Interlomas, Huixquilucan, in the Metropolitan Zone of the Valley of Mexico.

César Centeno Commercial Director

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? We have our corporate headquarters in Monterrey and offices in Mexico City. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Monterrey and Mexico City. We have performed installations in every capital city of the Mexican Republic.

Germán Robles CEO

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? The main one is in Mexico City and we have offices in Panama and Spain. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Mexico, Panama and Spain. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect a growth of approximately 30%.

• TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We are diversifying in the industry by implementing automation solutions with IoT, we are also entering the low and high cost residential sector. We’ll seek to market more brands and create a stronger network of integrators. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? We work with Ingram, Almacenes Audiovisuales and Representaciones de Audio in Mexico City. TOP IOO INTEGRATORS • REPORT 2019

THE INTEGRATORS PERSPECTIVES

Niza Alta Tecnología

Viewhaus Sistemas

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? 40 projects.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? 75 completed projects.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 7 million.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: Around USD 4.5 million.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: During 2018, Niza worked on the implementation of 40 AV / UC solutions for the corporate headquarters of a recognized commercial bank in Mexico. Following the latest trend of new workspaces with the current communication and collaboration challenges, we worked hand in hand with our client aiming to exceed their expectations. This relationship continues in 2019 with the AV assembly at an important historical venue.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We worked at the Universidad Jesuita de Guadalajara ITESO, Auditorio M, installing equipment such as high brightness video projectors and anti-vibration system, control consoles, HD robotic cameras, ellipsoidal reflectors, wireless microphone with Dante audio, AV recording systems and file transfer through Ethernet, among other AV control equipment.

Maru Gaitán CEO

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? We are in Mexico City. We don’t have any other offices. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Mexico City. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect a 10% increase. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? Almacenes Audiovisuales and Ingram in Mexico; Almo Corporation and Stampede Global in the United States.

Juan Carlos Medina Director

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? Our headquarters are in Guadalajara and we have branches in San Luis Potosí and Mexico City. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Guadalajara, Querétaro, San Luis Potosí, Mexico City, Irapuato, Monterrey. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect a growth between 5% to 8%, which would represent sales of around USD 7 million.

Central America

Advanced Techno Products AV Gurús Edgardo Cossu General Manager Panama

Hugo Kikut General Manager Costa Rica

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Around 35 projects.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Over 1,000.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 350,000.

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? We’re based in the city of San Jose in Costa Rica, we also have offices in Guatemala under the name Smartliving.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We designed and installed several meeting and training rooms, including the board of directors meeting room of the National Secretariat of Science and Technology of Guatemala (Secretaría Nacional de Ciencia y Tecnología de Guatemala, Senacyt in Spanish), with a 4K projection system, interactive touch screens, presentation system with an interactive screen, audio systems, among others, including design, equipment supply and installation, training and technical support.

• IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? San Jose, Guatemala, Panama. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect to have a growth of 25%.

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? We’re based in Panama City. We don’t have offices in other cities. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? City of Panama. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: Panama is going through a change of government with elections that happened last May. This caused business to move quite slowly this year because of the uncertainty that a new government entails. We expect things to improve after the installation of the new administration and to grow 5% in the remainder of 2019, compared to 2018. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? Almo, Audio Visual Export and Stampede AV in the United States, and Intcomex in Panama. TOP IOO INTEGRATORS • REPORT 2019

THE INTEGRATORS PERSPECTIVES

CVS Hightech

Juan Ramón Echeverría Manager Guatemala

Home & Office Technologies Renata Solano Project Manager Costa Rica

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Five projects.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? More or less 100 projects.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 600,000.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 400,000.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We carried out a telemedicine project, which allowed to bring health services and medical specialists to remote regions of Guatemala. This project resulted in a reduction in the cost of care by a very high percentage and stopping corruption, since costs were saved on vehicles for doctors’ transportation, fuel consumption, etc. It was a success, in addition to being cost effective, it’s of great help towards the development of the country.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We worked on the remodeling of a luxury apartment, with panelized lighting control, five audio and video zones, security systems with cameras, electronic keys and alarm, four areas with blackouts, integration with air conditioning and scene programming.

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? The main office is in Guatemala City and we work virtually in the development of several products with colleagues in Costa Rica and in Tallahassee, in the United States. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? In Guatemala City and Quezaltenango. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We have high growth expectations for this year.

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? Our main office is in San Jose, Costa Rica. We have subsidiaries in Mexico, Peru, Colombia and Guatemala. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Costa Rica. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect to grow by 10%.

Intech Engineering

Vosmedia

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Over 20 projects.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? We had 555 projects.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 1.3 million.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 3 million.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We worked at the Global Bank Panama headquarters, with room reservation systems, video conference rooms, collaboration systems and automation.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We installed a BMS for Bayer Guatemala headquarters during the remodeling of their pharmaceutical plant. We will go into more details about this project later in this report.

Albeiro García Manager Panama

• WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? We’re based in Panama and there is where we conduct most of our projects.

Sergio Galindo General Manager Guatemala

• WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? We are based in Guatemala. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect to grow by 20% in sales, as well as consolidating new technologies in the segments we serve.

TOP IOO INTEGRATORS • REPORT 2019

THE INTEGRATORS PERSPECTIVES

Ambientes Inteligentes

AVD

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Most projects come out through our integrators, so we can say about 40.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Approximately 40 projects.

Juan Fernando Montoya Manager Colombia

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 2 million, approximately. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We made the sound of six large parks, integrating them all through Dante. The environmental audio distribution can be easily configured by the user from a central headquarters. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? We’re based in Medellin. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Medellin, Bogotá, Bucaramanga, Cali. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We have similar expectations to 2018. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? We’re also distributors, supplying integrators in nearly all regions of Colombia. We purchase directly from manufacturers in the United States, Germany, Japan and China.

Andrés Plata COO Colombia

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 1.5 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: All the WeWork buildings, this is a company that leases offices and work spaces in Colombia. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? Bogotá. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? In the Colombian Andean region, Caribbean coast and Eastern Plains. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect to have a growth of 20%.

Andean Region

Axede

Datecsa

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? We finished the year with 40 projects.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? We carried out 20 projects.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: Close to USD 4 million.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 3 million.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: Our largest project in videoconferences, automation and audio was carried out with the Superior Council of the Judiciary (CSJ), to which we provided a solution for conducting virtual hearings and schedule video conferences through Axede’s help desk. This project included traveling to the six regions established by the CSJ, satellite connection, on-site technician for the audience, and infrastructure such as videoconferencing codecs, curtain, projector and computer.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We carried out AV integration and automation with collaboration systems for two management meeting rooms, a multiple auditorium and nine meeting rooms, three video walls for control rooms with a total of 40 screens, and the installation of 60 satellite screen units.

Alejandra Berdugo Marketing Coordinator Colombia

Carmen Elvira Arango Operations Coordinator Colombia

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? Our main headquarters are in Yumbo, and we have offices in Bogotá, Medellin, Barranquilla, Pereira, Manizales and Bucaramanga.

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? We’re based in Bogotá and we have offices in Medellin, Cali and Barranquilla.

• IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? In Cali, Bogotá, Medellin, Barranquilla and Bucaramanga.

• IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Bogotá.

• TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect a 10% growth.

• TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect to end 2019 with 3% above the Colombian economy.

TOP IOO INTEGRATORS • REPORT 2019

THE INTEGRATORS PERSPECTIVES

DB Systems

Integración AV

• RHOW MANY PROJECTS DID YOU WORK ON IN 2018? We carried out 45 projects.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? We had 58 projects.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 1.5 million.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 400,000.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We installed collaboration and videoconferencing systems at the Boston Consulting Group (BCG) offices in Bogotá. A collaboration system, wireless presentation, local presentation, and telephone calls were incorporated into the partner rooms; audio, video, curtains, lighting, videoconferencing and telephony were integrated into the intuitive videoconferencing rooms in an intuitive environment for users; and the Work Lounge –the emblematic space of the project– which represents the corporate environment that BCG wants to transmit, allowing diverse scenarios from videogame tournaments, football matches, to global videoconferences with other BCG venues. We will further elaborate about the project later in this report.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: In the new boardroom of the Fedepalma presidency, the entire audio, video, automation and videoconferencing system was installed, with the added requirements that the microphones had to be hidden and that the camera had to automatically focus on the participant who was talking, identifying them from the 40 people that can occupy the room simultaneously. There was the limitation of a floor-to-ceiling videowall that prevented the installation of one camera in a suitable location, so two cameras were installed, with the challenge that the system had to automatically select the right camera to transmit video to the video conference. Although this wasn’t a large magnitude project, it did require extensive development and programming.

Antonio Sandoval General Manager Colombia

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? Our only HQ is located in the city of Bogotá. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Bogotá, Cartagena and Bucaramanga. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect to achieve sales of 1.6 million dollars.

Juan Carlos Gutiérrez Manager Colombia

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? In the city of Bogotá, Colombia. We only have that office. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Bogota, Medellín, Pereira. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: A 30% growth is expected for 2019.

Magnopro Soluciones Tecnológicas

Fanny Jiménez Financial and administrative Director Colombia • HOW MANY PROJECTS DID YOU WORK ON IN 2018? We carried out 20 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 400,000. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We supplied and installed the audio and video systems for the MSD project, which lasted four months, an investment equivalent to $110,000. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? Bogota.

One Touch Solutions Roymer Chávez Projects Peru

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? 20 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 2 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We worked in the offices and show rooms of Sketchers, for the automation and ambient music installations. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Lima. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: To produce the best projects in AV and control, and to promote digital signage.

TOP IOO INTEGRATORS • REPORT 2019

THE INTEGRATORS PERSPECTIVES

Telvicom

Videocorp

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Six projects.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? We carried out 15 projects.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 2 million.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 1 million.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: At the Technological University of Peru (UTP), a remote microsurgery monitoring system was implemented in the Faculty of Human Medicine with high-definition PTZ robotic cameras, with 20x zoom lenses.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We worked at the corporate building of the Casanare department’s Chamber of Commerce, installing audiovisual systems in meeting rooms, boardrooms and the auditorium.

• WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? We’re based in Surquillo, Lima. We don’t have other offices.

• WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Bogota.

Carlos Anciburo Commercial Manager Peru

• IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Lima, Arequipa, Cusco, Chiclayo, Trujillo. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We’re working on different projects and we’re currently very focused on a particular project at a Convention Center.

Víctor Matamala Commercial Manager Colombia

• TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect to grow 25% more than the previous year.

Brazil

Virtualika

Jorge Cabello Commercial Manager Ecuador • HOW MANY PROJECTS DID YOU WORK ON IN 2018? 25 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 450,000. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We installed automation systems at a multiple training room, including audio, video, automation and scene control equipment. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? We’re based in Guayaquil. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Guayaquil and Quito. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect an annual growth of 25%. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? Nexsys, Wesco, Ingram and Zoom, in Ecuador.

About AV

Odair Tremante* Commercial Manager * At the date of this interview, Odair Tremante served as Commercial Director of About AV, retiring from office in July 2019.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? 150 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 7 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We worked in different spaces of WeWork, a company that leases furnished offices and work spaces in Brazil, including coffee areas with ambient sound, spaces for events with automation, collaborative environments, auditoriums, huddle rooms, resting rooms and other creative spaces. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? We’re located in São Paulo. We also have offices in Rio de Janeiro and Miami. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? São Paulo and Rio de Janeiro. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: With the merger of Solutione and Eletro Equip a year ago, we are prepared and continue working to achieve a 50% growth in 2019. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? In many cases we work directly with manufacturers, but our most used distributors are Agis, Ingram, Scan Source, Westcon and WDC. TOP IOO INTEGRATORS • REPORT 2019

THE INTEGRATORS PERSPECTIVES

Bsscom

Rhox Networking

• MHOW MANY PROJECTS DID YOU WORK ON IN 2018? Over 30 projects.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? 18 projects.

Cristian Miranda Director

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: Approximately USD 5 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: A major project we had was the Convention Center of the Patos de Minas University with 5,720 square meters (61.5 square feet), capacity up to 3,000 people, with eight modular rooms, twenty high-brightness projectors, IP audio and video system with the possibility of using in different formats and complete environment automation. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? São Paulo. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? In the southwest region of Brazil. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We’re working to achieve 20% growth in 2019. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? We work with different local and international distributors. Among the locals are Discabos, Audiogene, Lecran and Dealer.

Hilvanna Campelo Marketing and Relations Director

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 6.5 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We installed the audio and video system in an auditorium for 400 people, fully automated with video presentation on mobile devices and live streaming system via the Internet, together with the auditorium’s external area, where guests can host cocktails and receptions, with sound and video distribution, including an audio announcement system throughout the building. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Brasilia. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We have a 20% growth perspective in 2019. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? We have our own distributor Rhox Distribuidora in Brasilia, WDC and Network One in São Paulo.

Seal Telecom

Som Ambiente

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? We had 287 projects.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Between sound installation and home theaters, about 46 projects.

Daniel Skit Executive Director

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 100 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: Total system integration was carried out at Insper, a Brazilian higher education institution. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? The main office is at São Paulo, in Brazil we have offices in Brasilia, Belo Horizonte, Rio de Janeiro, Florianopolis, Mato Grosso do Sul; as well as in Buenos Aires, Argentina; Santiago, Chile; Mexico City; San Francisco and Miami in the United States. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? São Paulo, Brasilia, Buenos Aires, Mexico City and Rio de Janeiro. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We expect to grow by 40%. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? WDC in Brazil, Commstor and Scansource.

Luiz Reis Lana IT and Engineering Director

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 283,000. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We installed the videoconferencing system and acoustics adaptation at the BMG Bank presidency room; speaker systems at the Federation of Industries of the State of Minas Gerais (FIE MG) and updated the speaker system at the Mater Dei Hospital. • WHERE’S YOUR MAIN OFFICE LOCATED? We’re based in Belo Horizonte. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? In the Great Belo Horizonte and other states with executive projects and larger projects such as São Paulo, Rio de Janeiro, Paraná. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We believe that, with the new current political economic scenario, the investment of large companies will be stimulated and liquidity will increase, resulting in a greater sales volume. We expect to double the sales in 2019, thanks to market improvement. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? Chiave Distribuidora, Loud Audio Brasil, Angular Cabos, Thiaflex Fios e cabos, Dealer AV, Ikeda Empresarial, Pellegrino Distribuidora and Matrix Distribuidora, all in Brazil. TOP IOO INTEGRATORS • REPORT 2019

THE INTEGRATORS PERSPECTIVES

Convergencia Digital Signage ICAP Global Mariela Scicchitano Marketing Manager Argentina

Martín Saúl CEO Argentina

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? We currently have projects that include the administration of the largest and most complex Digital Signage circuits globally. Among them we have the YPF Digital Menu Board for YPF Full stores, the most important local store communication circuit, Musimundo TV, of the Musimundo chain, and other projects such as the World Trade Organization in Geneva, Switzerland, Argentina 2000 Airport, Cencosud Shopping Centers, Claro, Telecom and Banco Ciudad.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? Approximately 50 projects, which in turn have several sub-projects. We could say that we installed over 400 spaces.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 1,250,000. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? Our office is located in Buenos Aires, Argentina and we have a local presence in Mexico City and South Florida, in the United States. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? We’re present in over 250 cities in Argentina, in South Florida in the US, Uruguay, Peru and Santiago, Chile. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: Our operation in Argentina was influenced by the global and regional economy. We’ve experienced a devaluation of 125% in less than a year. However, we continue to see that new businesses are emerging around the country, such as home delivery apps, virtual payments and the like, as part of the digital transformation. For all this, 2018 was the year of the greatest growth of our proprietary Streems platform, which allows creating content with reduced costs, and we envision that this trend will continue in 2019.

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018: USD 12 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We worked at the new Coca Cola building in Buenos Aires, with the installation of solutions for collaborative spaces, meeting rooms, an auditorium, among others. We will mention more details about the project later in this report. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? Our headquarters are in Argentina, with offices in Spain, Chile and Colombia. We have regional coverage in Latin America, with projects in Uruguay, Paraguay, Bolivia, Peru, Ecuador, Panama, and the U.S. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? Buenos Aires, Santiago, Bogota, Madrid, Barcelona. • GROWTH AND SALES PROSPECTS FOR 2019: We estimate a 20% growth in revenue for 2019, and we also expect a significant increase in knowledge due to training and hands-on experience in new technologies. • WHO ARE YOUR TRUSTED DISTRIBUTORS AND IN WHICH COUNTRIES / REGIONS ARE THEY LOCATED? ICAP generally works directly with manufacturers. In turn, ICAP distributes several brands, also being a distributor.

Southern Cone

ProMúsica

VAI - Video Audio Ingeniería

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? We carried out around 40 projects of different magnitudes.

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? 20 projects.

Roberto Fuentes Director Uruguay

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We were hired for the distribution and installation of the audio, video, lighting, and automation systems of the Antel Arena, a building property of the National Telecommunications Administration, Antel. It’s a sports arena that was built from scratch and whose construction began in 2014. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? We are in the city of Montevideo and serve the entire Uruguayan territory.

Omar Martinella Director Argentina

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018? We designed the passenger call system based on the Dante protocol for the Ezeiza Airport in Buenos Aires. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? In Buenos Aires. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We’re living a time of recession in Argentina so it’s difficult to predict this, although we believe that we will maintain the same level of recent years.

• TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: We notice that consumers tend to increasingly buy online. We’re now incorporating this way to conduct sales and experiencing an interesting change in the sales of our products over the Internet.

TOP IOO INTEGRATORS • REPORT 2019

THE INTEGRATORS PERSPECTIVES

Wullich Audio Video Sergio Molina Ingeniería Argentina

• HOW MANY PROJECTS DID YOU WORK ON IN 2018? We carried out ten projects of different sizes. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018: We worked in three-story apartments in Puerto Madero, installing complete automation systems. • WHERE’S YOUR MAIN OFFICE? DO YOU HAVE BRANCHES IN OTHER CITIES OR COUNTRIES? We have offices in Miami, the United States and in the Autonomous City of Buenos Aires, Argentina. • IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION? The Autonomous City of Buenos Aires. • TELL US YOUR GROWTH AND SALES PROSPECTS FOR 2019: Although 2018 was not a very good year because of the economic difficulties experienced in our country, added to the fact that 2019 is an election year, we’re taking the time to renew our image and expand in advertising strategies. However, I doubt that there will be growth during the current situation in the country.

THE AV CONSULTING EXPERTS PERSPECTIVES Looking beyond the junctures of Latin American economies, especially Venezuela and Argentina, it’s clear that integrators are optimistic about their companies in the near future. This doesn’t mean that there aren’t constant challenges that integrators must overcome, taking into account that the AV industry is in fast and constant evolution. To analyze this point of view, in this edition of the Top 100 Latin American Integrators Industry report, we consulted two experts of this business: Carlos Dalmarco, AV consultant of CD Consult in Brazil, and Erick López, director of Escuadra Technology and the newly created Universidad Escuadra, of Mexico. They said that certificated training is a key element for industry entrepreneurs, along with a growing synergy with related industries, such as IT, a trend that can no longer be overlooked in a competitive industry such as AV, in which customers are increasingly better informed about existing technologies and what they can achieve with it.

“POTENTIATE THE KNOWLEDGE AND STRENGTHEN LINKS WITH OTHER INDUSTRIES”, EXPERTS SAY.

TOP IOO INTEGRATORS • REPORT 2019

Carlos Dalmarco Expert AV consultant

CD CONSULT

• WHAT IS YOUR PERCEPTION OF THE AV INDUSTRY IN 2019? “I see that the industry is going through a migration, a convergence, that began a couple of years ago with the world of Information Technology (IT), an industry that has a different way of looking at systems, and I believe this convergence is inevitable for the AV industry. From an entirely technological point of view, audio and video over IP are already a reality, the transmission will be done through Ethernet networks and the IT experts will be in charge of handling it. So we must be very attentive to these changes, to learn to speak and understand the language of our new partners in that industry.” • HOW HAS THE AV INDUSTRY EVOLVED OVER THE LAST FIVE YEARS? “Technologically, AV over IP transmission is a very important advance that offers infinite scalability and expansion, in addition to remote support for any equipment connected to the network, and the trend of software as a service (SaaS) that works from the cloud and less and less with software installed locally. This gives us a different perspective of the AV distribution, so I say it is a very important change we’ve had in the industry.

On the other hand, users are changing. We live in the Millennial generation, who are right now reaching management positions and want technologies of simpler use. So, if a technology requires a lot of training to be able to use it, then it doesn’t work for them.” • WHAT IS YOUR ADVICE FOR INTEGRATORS, TAKING INTO ACCOUNT CURRENT ECONOMIC CONDITIONS? “I would tell them that, if they have a client with a low budget, don’t install a low quality project just to finish it, doing ‘whatever you can with very little money’. On the contrary, it’s preferable to install indispensable and good quality equipment, and leaving the system open for scalability in the future, when it’s possible to invest more. Of course, this requires educating the customer, going further than just selling, because if an installed solution results in a bad experience, the client will believe that ‘the technology doesn’t work, its expensive and useless’, and will ultimately result in the loss of the client. In this sense, without a doubt, adequate training with certification is key to formalizing the AV industry, in which it’s still very common to see situations such as: ‘my friend (or cousin, or nephew) knows how to install that’. So it’s necessary to seek and certify the knowledge that all integrators today must have.”

AV CONSULTING EXPERTS

Erick López Director

ESCUADRA TECHNOLOGY • IN TERMS OF KNOWLEDGE AND TRAINING, HOW IS THE AV INDUSTRY IN 2019? “We have noticed that there are very important technological innovations, but at the same time there is a very large educational deficiency, not to mention the lack in technique. The vast majority of those who work in the AV industry are learning with hands-on work in the field, there are no institutions dedicated to professionalize. Escuadra has been in the AV industry for almost twenty years, and the greatest need we’ve seen is of human talent: to have professionals who know how to assemble structures, assemble an audio system, who know about video. Therefore, two and a half years ago we began a search for educational programs in different institutions and discovered a void in programs for this industry. This is how we came up with the idea of creating Escuadra University, an institution to professionalize those who already have working experience, and the new generations.”

• WHAT OTHER ASPECTS SHOULD INTEGRATORS STRENGTHEN TO BOOST THE INDUSTRY? “I think that it’s necessary to make alliances with manufacturers, we must ensure that they get closer to the integrators with specific courses on their products, and that they are not just in contact with the distributors alone. Likewise, it’s also necessary to educate customers and end users about what can be achieved with the equipment; to bring them automation solutions and Internet of Things, so that they can ultimately assume an active role about what they hope to obtain of their projects. An important challenge for integrators is to have well-trained collaborators who can understand and integrate technology. This is a difficulty to overcome, because much of this knowledge is only received from manufacturers in a restrictive way, and in many cases, it’s expensive. For example, a certification with a wellknown automation brand can take a year and cost over two thousand dollars.”

TOP IOO INTEGRATORS • REPORT 2019

CHAPTER 3

2019

RANKING BY REGION

TOP IOO INTEGRATORS â&#x20AC;¢ REPORT 2019

Mexico No.

1 2 3 4 5 6 7 8 9 10

COMPANY

SEGMENT

MULTIMEDIA

Corporate, educational, home theater, digital signage

GRUPO NIZA

Corporate, educational, residential, digital signage

APLITEC INGENIERÍA

Audio, automation, control, lighting, theater engineering and video

GRUPO ACT

Video conferencing, audio conferencing, CCTV, VoIP

C3NTRO TELECOM

Video conferencing, audio, video, unified communications, digital signage

KOLO

Digital signage, content creation, training

AV PRESTIGE

Audio, video, multimedia, cinema, automation

GRUPO COVIX

Audio, video, automation, conference rooms, videowalls

G4 AUDIO Y VIDEO

Videoconferencing, telepresence, auditoriums, home theater

VIEWHAUS SISTEMAS

Corporate, educational, government, specialized, broadcast and television

REPRESENTATIVE

WEB INFO

Mariana Aguilar

maguilar@multimedia.com.mx

+52 81 2090 1828

www.multimedia.com.mx

Mariana García

mariana.garcia@gruponiza.com

+52 55 5207 0888

www.gruponiza.com

José Luis Olvera

jlolvera@aplitec.com.mx

+52 99 8892 7712

www.aplitec.com.mx

César Centeno

ccenteno@grupoact.com

+52 81 8333 9821

www.grupoact.com

Omar García

omar.garcia@c3ntro.com

+52 55 5174 8040

www.c3ntro.mx

Germán Robles

g.robles@kolo.digital

+52 55 1107 8686

www.kolo.digital

Alfonso Vélez

alfonso.velez@avprestige.com.mx

+52 22 2298 2119

www.avprestige.com.mx

Francisco Hernández

francisco@grupocovix.com

+52 55 5568 6364

www.grupocovix.com

Francisco Zamorano

g.ventas@g4audio.mx

+52 55 5564 5742

www.g4audio-video.com.mx

Juan Carlos Medina

juancarlos@viewhaus.com.mx

+52 33 3123 9355

www.viewhaus.com

16.32%

14.37%

11.65%

11.63%

8.43%

7.77%

5.20%

4.09%

3.07%

3.06%

No.

COMPANY

SEGMENT

SEAL TELECOM

Theater, meeting rooms, cinema, buildings

INTELIKSA

Audio, automation, lighting, residential and corporate

ARTCOUSTIX

Audio, video, control and special engineering

CENTRO DE AUDIO, VIDEO Y COMUNICACIONES

Corporate, automation, videoconferencing, commercial audio, home theater

AUDITY

Acoustics, home automation, audio and video, Networks / WiFi / IT, ecotechnologies

11 12

15 16 17 18 19 20

ESCUADRA

Audio, video and lighting

TEDD - GRUPO TELETEC

Audio, video and lighting for theaters and museums

WIREDHOUSE

Residential, corporate, commercial, audio, video, automation, lighting

CREATIO (PREV. SEESA)

Videoconferencing, telemedicine, visualization centers, digital signage, streaming and unified communications

NTX

Corporate, educational, entertainment, digital signage

REPRESENTATIVE

WEB INFO

Eduardo Aguilar

eduardo@sealtelecom.com.mx

+52 55 5594 0390

www.sealtelecom.com.br

Enrique Granados

egranados@inteliksa.com

+52 55 5026 6969

www.inteliksa.com

César Zenil

czenil@artcoustix.com

+52 55 5598 6016

www.artcoustix.com

Manuel Carselle

mcarsell@cavc.com.mx

+52 55 5373 4456

www.cavc.com.mx

Ernesto Xavier Guerrero

eguerrero@audity.mx

+52 33 1591 0742

www.audity.mx

Diana Martínez

diana@escuadramx.com

+52 55 8488 2424

www.escuadramx.com

Enrique Lask Marcoschamer

enrique@tedd.com.mx

+52 55 3000 1870

www.tedd.com.mx

David Eugenio Hernández

dhernandez@wiredhouse.com.mx

+52 81 1133 8333

www.wiredhouse.com.mx

Cristian Bautista

cristian@creatio.lat

+52 55 8589 8600

www.creatio.lat

Fernando Zurbarán

fernandoz@ntx.com.mx

+52 55 2629 5959

www.ntxdistribution.com

2.50%

2.35%

1.55%

1.54%

1.46%

1.27%

1.21%

1.19%

0.68%

0.67% 100%

* Percentage of recognition and trajectory of Latin American AV Integration companies.

TOP IOO INTEGRATORS • REPORT 2019

Central America No.

COMPANY

SEGMENT

VOSMEDIA

Multimedia and building automation, smart classrooms

DIGITECH

HOME & OFFICE TECHNOLOGIES

AXIOMA

COMUNICACIONES GLOBALES

CVS HIGHTECH

AUDIO CONCEPTOS

SIGNO

Audio, video, lighting

Videoconferencing, audio, video, digital signage, residential

Building automation, structured cable, power quality

Projection, education, videoconferences

Videoconferencing, telemedicine, telepresence, audio, video

Audio, video, residential and commercial lighting

Automation, visual systems, communication

REPRESENTATIVE

WEB INFO

Sergio Galindo

sigalindo@vosmedia.com

+502 2387 0700

www.vosmedia.com

José Álvarez

josealvarez@digitechcr.com

+506 2228 6066

www.digitechcr.com

Renata Solano

renata@hot.cr

+506 2272 8095

www.hot.cr

José Rolando Alvarado

rolando.alvarado@axioma.co.cr

+506 2290 9243

www.axioma.co.cr

Alejandro Carbajal

alejandro.carbajal@comunicacionesglobales. com

+504 2263 4444

www.comunicacionesglobales.com

Juan Ramón Echeverría

jrecheverria@hightechgt.com

+502 2368 4529

www.hightechgt.com

María José Rodriguez

majorodriguez@audio-conceptos.com

+502 2460 7044

www.audio-conceptos.com

Karen Rivera

karen-rivera@signo.com.sv

+503 2209 0808

www.signo.com.sv

COUNTRY

GUATEMALA

16.05%

COSTA RICA

12.8%

COSTA RICA

7.66%

COSTA RICA

7.42%

HONDURAS

7.23%

GUATEMALA

6.67%

GUATEMALA

6.33%

EL SALVADOR

6.13%

No.

COMPANY

MUSITEMPO

ABASTOS Y SERVICIOS

ADVANCED TECHNO PRODUCTS

INTECH ENGINEERING

AV GURÚS

SEGMENT

Audio, automation, commercial, residential

Audio, video, automation, CCTV, unified communications

Audio, video, lighting, home automation, education

Audiovisual and control systems for corporate and commercial market

Audio, video, security, voice, data, videoconferences, lighting and control

INTERACTIVA DOS MIL

Presentation rooms, meeting rooms, training rooms, videoconferencing

MASCO INGENIERÍA

Audio, video and automation for commercial

REPRESENTATIVE

WEB INFO

COUNTRY

Fernando Hernández

fhernandez@musitempo.com

+809 548 6664

www.musitempo.com

Roberto Ruiz

r.ruiz@abasto-servicios.com

+809 732 6655

www.abasto-servicios.com

Edgardo Cossu

ecossu@ciabtesh.com

+507 264 4975

www.advancedtechno.net

Albeiro García

gerencia@intech-engineering.com

+507 390 8083

www.intech-engineering.com

Hugo Kikut

hugo.kikut@avguruscr.com

+506 2290 2191

www.avguruscr.com

Esteban Hernández

esteban.hernandez@interactiva.co.cr

+506 2223 2303

www.interactiva.co.cr

Gilberto Chaves

gilberto@masco.la

+506 2223 2201

www.masco.la

DOMINICAN REPUBLIC

5.77%

DOMINICAN REPUBLIC

5.75%

PANAMA

5.64%

PANAMA

3.92%

COSTA RICA

3.78%

COSTA RICA

2.64%

COSTA RICA

2.53%

100% * Percentage of recognition and trajectory of Latin American AV Integration companies.

TOP IOO INTEGRATORS • REPORT 2019

Andean Region No.

COMPANY

SEGMENT

DB SYSTEMS

Audio, video, automation and control

MAGNOPRO SOLUCIONES TECNOLÓGICAS

Corporate, meeting rooms, videoconferencing, digital signage

AXEDE

Unified communications, visual collaboration, IP

VIDEOCORP

INTEGRACIÓN AV

DATECSA

SEAL TELECOM

AV DESIGN

ALVAN ELECTRONICS

audio, automation, home theater, residential, commercial, boardrooms

VIRTUALIKA

Audio and video automation for commercial and residential sectors

SCHALLERTECH

Audio, video, videoconference, corporate

Corporate, residential, control rooms

Audio, video, automation, digital signage

Theater, meeting rooms, cinema, buildings

Unified communications, videoconferencing, telepresence, automation

Audio, video, lighting, automation for residential, educational and corporate sectors

GRUPO CSI

Video, control centers, automation,

TELVICOM

Audio, Video, Automation, Digital Signage

REPRESENTATIVE

WEB INFO

Luis Fernando González

lgonzalez@dbsystems.com.co

+57 1 213 7949

http://dbsystems.com.co

Fanny Jiménez

fanny.jimenez@magnopro.com.co

+57 1 703 2567

www.magnopro.com.co

Juan David Galeano

juan.galeano@axede.com.co

+57 1 593 5500

www.axede.com.co

Daniel Bernate

dbernate@videocorp.com

+57 1 616 8255

www.videocorp.com

Juan Carlos Gutiérrez

jgutierrez@integracionav.com

+57 1 373 9538

www.integracionav.com

Diego Fernando Caballero

diegocaballero@datecsa.com

+57 2 695 7070

http://datecsa.com

Sergio A. Brieba

sergio.brieba@sealtelecom.com.co

+57 318 703 1095

www.sealtelecom.com.br

Andrés Plata

andres.plata@avd.la

+57 1 756 3322

www.avd.la

Luis Chirinos

sales@alvanelectronics.com

+51 1 628 1600

http://alvanelectronics.com

Jorge Cabello

jorge.cabello@virtualika.com

+593 4 263 1190

www.virtualika.com

Freddy Sampayo

freddy@schallertech.com

+57 5 301 4040

www.schallertech.com

Ruby Judith González

csicomercial@centrosdecontrol.com

+57 1 655 9288 +593 2 600 6336

www.centrosdecontrol.com

Carlos Anciburo

canciburo@telvicom.com www.telvicom.com

COUNTRY

COLOMBIA

12.83%

COLOMBIA

10.76%

COLOMBIA

10.04%

COLOMBIA / PERU

7.75%

COLOMBIA

6.22%

COLOMBIA

5.72%

COLOMBIA

4.13%

COLOMBIA

3.98%

PERU / BOLIVIA

3.48%

ECUADOR

3.47%

COLOMBIA

3.18%

COLOMBIA / ECUADOR

3.15%

PERU

2.87%

No.

COMPANY

SEGMENT

AMBIENTES INTELIGENTES

Audio, video, automation, corporate, commercial, residential

PLANNING-EST

Audio, videoconference, digital signage

CONSTRUCCIONES ACÚSTICAS

Audio, acoustic design

AVC INTEGRADORES

Video, automation, Home Theater, control rooms

PROYECTOS MULTIMEDIA

Audiovisual

ONE TOUCH SOLUTIONS

Audio and video for corporate and educational sectors

LIMA SOUND

Audio, automation, Home Theater, residential, commercial

ING. ELECTROACÚSTICA

Audio, Home Theater

VENTTO TECNOLOGÍA INTEGRAL

Audio, video, lighting, automation for residential, commercial and corporate sectors

DIFUSIÓN

Corporate, hotels, education, government, digital signage

ANPALA

SEEL

REPRESENTATIVE

WEB INFO

Juan Fernando Montoya

juanfmontoya@a-int.co

+57 4 444 4755

www.lacitaav.com

Eduardo Psijas

ventasperu@videocorp.com

+51 1 447 6525

www.videocorp.com

Diego Amín Campos

ingenieria.dir@acustical.com

+57 1 317 7077

www.acustical.com

Christian Yaipén

christian_yaipen@hotmail.com

+51 1 225 9195

www.avcintegradores.com.pe

Iván Carlos Canales

icanales@proyectos-multimedia. com

+51 1 348 7484

www.proyectos-multimedia.com

Roymer Chávez

roymer.chavez@ots.com.pe

+51 1 440 1441

www.ots.com.pe

Franz Sanabria

fsanabria@limasound.com

+51 1 241 1689

www.limasound.com

Francisco Ortiz

fortiz@ingeacustica.com

+57 1 750 5799

www.ingeacustica.com

Marisol Trillos

gerencia.comercial@venttotecnologiaintegral.com

+57 1 805 2782

www.venttotecnologiaintegral.com

Guillermo Gutiérrez

guillermo.gutierrez@difusion.com.pe

+51 1 616 0800

www.difusion.com.pe

Guillermo del Río

gerencia@anpala.com.co

+57 5 378 6689

www.anpala.co

Carlos Iván Fernández

cifernandez@seel.com.co

Control centers, videowalls

Audio, video, lighting, automation, educational

COUNTRY

COLOMBIA

2.76%

PERU

2.48%

COLOMBIA

2.38%

PERU

2.34%

PERU

2.10%

PERU

1.83%

PERU

1.81%

COLOMBIA

1.74%

COLOMBIA

1.28%

PERU

1.28%

COLOMBIA

1.22%

COLOMBIA

1.17%

www.seel.com.co

100%

* Percentage of recognition and trajectory of Latin American AV Integration companies.

TOP IOO INTEGRATORS • REPORT 2019

Brazil No.

1 2 3 4 5 6 7 8 9 10 46

COMPANY

SEAL TELECOM

SEGMENT

Audio and video for corporate sector, digital signage, unified communications.

ABSOLUT

Audio and video for corporate sectors, virtual reality, cloud, control centers

ABOUT AV

Audio and video for telepresence, videoconferencing, telemedicine, IP, automation and digital signage

AUDIOCOM

Audio, video and lighting for commercial, residential and corporate sectors

SOM AMBIENTE

Audio, video, automation, corporate

TELEM

Corporate, auditoriums, conference rooms

DIGITALNET

Audio, video, automation, videoconferencing, telepresence, unified communications

BSSCOM

Automation, sound, digital signage, unified communications

JPG

Corporate, residential, auditoriums

RHOX NETWORKING

Corporate networks, audio and video cabling

REPRESENTATIVE

WEB INFO

Daniel Skit

daniel@sealtelecom.com.br

+55 11 3877 4017

www.sealtelecom.com.br

Hans-Jรถrg Ulmer

ulmer@abs-tech.com

+55 11 2691 5113

www.abs-tech.com

Claudio Younis

claudio.younis@aboutav.com

+55 11 4085 2100

www.aboutav.com

Ebel Valois

ebel@audiocom.com.br

+55 81 3447 3233

www.audiocom.com.br

Luiz Reis Lana

somambiente@somambiente.com.br

+55 31 3337 5863

www.somambiente.com

Roseli Hipรณlito

roseli.hipolito@telem.com.br

+55 11 2274 9422

www.telem.com.br

Gilmar Marques

gilmar@digitalnetbr.com.br

+55 17 4141 1212

www.digitalnet.com.br

Cristian Miranda

cristian@bsscom.com.br

+55 11 3467 7272

www.bsscom.com.br

Joseanio Galdino

joseanio@jpghh.com.br

+55 11 3877 0088

www.jpghh.com.br

Hilvanna Campelo

hilvanna@rhox.com.br

+55 61 3051 5800

www.rhox.com.br

14.55%

12.36%

11.13%

5.82%

5.44%

4.57%

4.28%

4.18%

3.99%

3.81%

No.

11 12 13

COMPANY

SEGMENT

QUADDCOMM

Audio, video, automation, control centers, Home Theater, sound

SOUND VISION

Audio, video, multimedia, sound for stadiums, digital signage

PROXXIMA

Audio and video for corporate sector

MUNDO VISUAL

Audio and video for corporate and educational sectors

BETTONI

Audio, telepresence, acoustics, digital signage, automation

HIGH RESOLUTION

Audio, video, automation, videoconferencing

CENARIO PROJETOS AUDIOVISUAIS

Audio, video and lighting for commercial sector

ATHIE

Audio and video for corporate sectors and auditoriums

PERFORMANCE

Audio, video for corporate, residential, control centers

14 15

18 19 20

INFOVIEW

Video, sound, computer and IT

REPRESENTATIVE

WEB INFO

Ricardo Ferraz

ricardo.ferraz@quadcomm.com.br

+55 11 2626 0713

www.quadcomm.com.br

Leandro Freire

leandro@soundvision.com.br

+55 11 5181 0730

www.soundvision.com.br

Elaine Carreira

elaine.carreira@proxximanet.com.br

+55 41 3322 8686

www.proxximanet.com.br

Gilson Tupinambรก

gilson.tupinamba@mundovisual.net

+55 21 2516 0597

www.mundovisual.net

Danillo Bettoni

danillo@bettoni.com.br

+55 11 4433 6400

www.bettoni.com.br

Mariza Figueiredo

mariza@highresolution.com.br

+55 21 3974 3034

www.highresolution.com.br

Marcelo Gotlib

marcelo.gotlib@cenario.com.br

+55 11 2626 9913

www.cenario.com.br

Renata Cunha

marketing@awnet.com.br

+55 11 5501 6901

www.athiewohnrath.com.br

Leonardo Quadros

leonardo@performancenet.com.br

+55 41 2103 1200

www.performancenet.com.br

Roberto Braga

rbraga@iview.com.br

+55 21 3971 0001

www.iview.com.br

* Percentage of recognition and trajectory of Latin American AV Integration companies.

3.81%

3.70%

3.40%

3.30%

3.22%

2.72%

2.69%

2.53%

2.30%

2.20%

100%

TOP IOO INTEGRATORS โ ข REPORT 2019

Southern Cone No.

COMPANY

SEGMENT

REPRESENTATIVE

WEB INFO

Audio, video, corporate, education, videoconference, digital signage

Martín Saúl

msaul@icap.com.ar

ICAP GLOBAL

+54 11 4865 3755

www.icapglobal.com

Audio, video, videoconference, corporate

Pablo Psijas

ppsijas@videocorp.com

+56 2 2431 6148

www.videocorp.com

Videoconferencing, audioconferencing and telepresence

Erika Arredondo

erika.arredondo@colaboracionvirtual.com

+56 2 2756 0000

www.latintele.com

Audio, video, digital signage, corporate, videoconference

Gabriela Molina

g.molina@proyecciones.net

+54 11 5353 1110

www.proyecciones.net

Felipe Juárez

felipe.juarez@integraciondigital.cl

+56 2 2844 8317

http://pantallastransparentes.cl

Audio, video, videoconferencing, corporate, education

María Martha De Nucci

mmdenucci@viditec.com.ar

+54 11 4122 1200

www.viditec.com.ar

Audio, video, lighting, control, corporate and residential

José Miguel Davids

jmdavids@dcontrol.cl

+56 2 2946 4367

www.digitalcontrol.cl

Mariela Scicchitano

mscicchitano@convergenciads.com

+54 11 4795 3855

www.convergenciads.com

Audio and video for corporate sector, digital signage, unified communications

Andres Pautasso Ignacio Ricardo Lucero

andres@sealtelecom.com.ar ignacio@sealtelecom.cl

+54 9 11 6354 6302 +56 9 8724 2594

www.sealtelecom.com.br

Audio, video, corporate, education, videoconferencing

Diego Pérez

diego.perez@newtech.com.ar

2 3 4 5 6 7 8

VIDEOCORP

LATIN TELECOM

PROYECCIONES DIGITALES

INTEGRACIÓN DIGITAL

VIDITEC

DIGITAL CONTROL

CONVERGENCIA DS

SEAL TELECOM

NEWTECH SOLUTIONS MULTIMEDIA

Video, digital signage

www.newtech.com.ar

COUNTRY

ARGENTINA

15.12%

CHILE

13.13%

CHILE

6.52%

ARGENTINA

6.39%

CHILE

5.56%

ARGENTINA

5.39%

CHILE

5.22%

ARGENTINA

4.77%

ARGENTINA / CHILE

3.97%

ARGENTINA

3.84%

No.

11 12 13 14 15 16

COMPANY

SEGMENT

REPRESENTATIVE

WEB INFO

Audio, video, acoustics for commercial and corporate sector

Ronald Furet

rfuret@spevi.cl

SPEVI

+56 2 2222 5281

www.spevi.cl

Audio, video, lighting, automation, home

Johanna Maassen

johanna.maassen@macom.com.py

theater

+595 021 228211

www.macom.com.py

Audio, automation, home automation, lighting

Roberto Fuentes

roberto@promusica.uy

+598 2480 8000

www.promusica-uy.com

MACOM

PROMÚSICA

COUNTRY

Audio and video commercial, corporate, education

Ariel Fabius

afabius@anasist.com.uy

ANALISIS DE SISTEMAS

+598 2711 9034

www.anasist.com.uy

Audio, video, acoustics and residential and corporate automation

Sergio Molina

sergio@wullich.com.ar

WULLICH AUDIO VIDEO

+54 11 4815 6006

www.wullich.com.ar

Leandro Badoglio

lbadoglio@nic-sa.com.ar

NIC

Corporate video +54 34 1426 0587

www.nic-sa.com.ar

José Manuel Abarca

jabarca@novotic.cl

+56 2 2211 3310

www.novotic.cl

Educational, corporate and commercial audio and video

Jorge Biatturi

jorgeb@visiondirect.com.uy

+598 2408 2336

www.visiondirect.com.uy

Audio, video and corporate and residential automation

Omar Martinella

omartinella@vaiargentina.com.ar

+54 11 4915 5500

www.vaiargentina.com.ar

Corporate, education, videoconferencing, automation

Jean-Paul Hernaiz

jeanpaul.hernaiz@dinecom.cl

NOVOTIC

Audio, video, lighting, control, commercial, corporate, educational

CHILE

3.53%

PARAGUAY

3.48%

URUGUAY

3.40%

URUGUAY

3.16%

ARGENTINA

3.09%

ARGENTINA

2.99%

CHILE

2.81%

URUGUAY

2.74%

ARGENTINA

2.45%

CHILE

2.45%

and residential

18 19 20

VISION DIRECT

VIDEO AUDIO INGENIERÍA

DINECOM

www.dinecom.cl

100% * Percentage of recognition and trajectory of Latin American AV Integration companies. TOP IOO INTEGRATORS • REPORT 2019

CHAPTER 4

SUCCESS STORIES OF THE FIRST PLACES OF THE TOP 100 INTEGRATORS As we observed in each of the contributions shared in the second chapter of this report, 2018 was a significantly productive year for the Top 100 AV Integrators. And again this year, we opened a space for the winners of each region to present their most recent outstanding project, giving them the opportunity to highlight the new trends and the most current interests of potential clients, as well as possible business opportunities.

TOP IOO INTEGRATORS â&#x20AC;¢ REPORT 2019

Central America

Vosmedia Guatemala THE PROJECT’S CHALLENGE The Bayer company at Amatitlán was undergoing an expansion and remodeling project at their offices, for which they also required the installation of high-level audio, video, lighting and communications automation systems for the operation of nine meeting rooms and common areas. These rooms were intended to have multiple usage in single, double and triple configurations, thus covering three small rooms, three medium and three large. It should be noted that the client had a similar project carried out previously in one of their regional corporate offices in the United States, which served as a reference for the minimum standard expected as a result of this project. THE INSTALLED SOLUTION AND ITS RESULTS The chosen system for the installation covered the most recent Crestron digital audio processors (DSP), with a native connection tested with Cisco IP / SIP telephone plants, a feature that the client had not been able to obtain in previous projects, thus offering a high level of integration with all the involved technologies under an IP digital platform. Such technologies include audio, video, lighting, wired and wireless communication, control, air conditioning, power and digital signage. Therefore, this project enabled the creation of work areas with multimedia automation that allowed effective meetings, while at the same time, all types of users were unified, from Production, Human Resources and Administration, IT, among others. As a result, the project offers native interoperability with Crestron, capitalizing on the brand’s entire portfolio of products, run by Vosmedia as the sole integrator, under an IP digital platform to create an integrated, native and user-friendly experience.

PROJECT INFORMATION: Installation of automation systems in meeting rooms at the offices of Bayer Amatitlán, in Guatemala.

INSTALLED BRANDS: Crestron

DURATION OF THE PROJECT: During 2018.

Andean Region

DB Systems Colombia THE PROJECT’S CHALLENGE The project took place at the Boston Consulting Group (BCG) offices, a well-known private consultant that advises business transformation processes, and five years ago opened their office in Bogotá. They needed the project done in three types of spaces: the partner rooms, videoconference rooms and the Work Lounge. As it is a consulting office, the occupancy was constant for almost 24 hours a day as employees all have different work schedules. THE INSTALLED SOLUTION AND ITS RESULTS A collaboration system with wireless presentation, local presentation and telephone calls was incorporated for each of the partner rooms. The system automatically detects the presence of the user, activating and preparing for collaboration as soon as the users enter the room, and shutting down at their exit, meaning a minimum human intervention is needed for the use of the room.

PROJECT INFORMATION: Installation of collaboration and videoconferencing systems in the offices of Boston Consulting Group (BCG) in Bogotá.

INSTALLED BRANDS: Crestron, Cisco, Chief, Shure, NEC, Tannoy, Polycom, Sharp.

DURATION OF THE PROJECT: September 2017.

As for the videoconference rooms, audio, video, curtains, lighting, videoconferencing and telephone systems were integrated in an intuitive environment, which allows the handling of different scenarios simultaneously or individually. All control is centralized with a Crestron touch screen. On the other hand, the Work Lounge is the emblem space of this project, representing BCG’s corporate environment. This space is fit for diverse scenarios, such as videogame tournaments, watching football matches, even for global videoconferences with other BCG offices. For the client, the final result exceeded their expectations, knowing their past experiences with integrators outside the United States, and they are “very pleased with the quality of service and expertise to solve even the simplest tasks to the most complex ones”, said Nestor Cordero, IT specialist at BCG.

TOP IOO INTEGRATORS • REPORT 2019

Brazil

Seal Telecom Brazil THE PROJECT’S CHALLENGE The project consisted of the integration of audio, video, security and automation systems on the campus of the Insper Institute of Education and Research in São Paulo, particularly in the new tertiary education building for business administration and management, economics, computer sciences and engineering majors. The challenge was to transform the traditional way of teaching, using AV technology for a better learning experience, favoring abstract thinking, productivity and commitment of students and teachers, integrated with other tools such as building management systems (BMS), fire detection, CCTV and incident management, in an automated and networked environment. A requirement of this project is that it had to offer return on investment (ROI) through ease of use, durability, Internet integration and future scalability. THE INSTALLED SOLUTION AND ITS RESULTS The mentioned systems were installed in 55 environments on the seven floors of the building, including fourteen expandable classrooms with a capacity of between 60 and 120 students, a classroom with 360° visualization, eight laboratories, two control centers, as well as teacher’s rooms, study halls, lobby, gathering area and cafeteria. All environments have audio systems, video capture and distribution, and are integrated with other subsystems such as lighting, curtains, wired and wireless data networks, access control, and even the evacuation alarm system. Additionally, the installed automation control allows access to all systems both on site or remotely through the network. For example, audio systems digitally processed by the QSC system were implemented for all environments, with Shure ceiling microphones controlled by network software, processors and speakers that communicate through Dante IP and are integrated into the system against fire that issues emergency alerts and evacuation; SmartScreen interactive projection systems and laser projectors also receive signals from multiple sources via HDMI and BYOD

via Wi-Fi, as well as image capture with integrated remotely controlled PTZ cameras. All this implementation resulted in great customer satisfaction, in particular because of the certainty during the technical and financial evaluation stages, and the technical certifications of the Seal Telecom team.

PROJECT INFORMATION: Integration of AV, security and automation systems at the Institute of Education and Research, Insper in São Paulo.

INSTALLED BRANDS: Creston, Shure, LG Pro, QSC, Epson, AVA Projecta, Verint, Intelliweb, Barix, Delta Controls, Hikvision, Dell, Logitech, Cisco.

DURATION OF THE PROJECT: September 2018 to February 2019.

Southern Cone

ICAP Global Argentina THE PROJECT’S CHALLENGE The new Coca-Cola headquarters in Argentina was proposed as a modern, innovative and sustainable building with high technological quality standards, with the premise that it must be “provocative and facilitate communication and collaboration processes”. This covered a large project that was carried out by ICAP Global in partnership with the fellow integration company Proyecciones Digitales, an unusual challenge of commitment for all involved. The project had two major challenges that required joining efforts: completion of the project before the deadline, which was too short to be achieved by a single company, taking into account that the implementation covered more than one hundred spaces, and the technological and engineering complexity which required both integrating companies to combine their “know-how”. THE INSTALLED SOLUTION AND ITS RESULTS A comprehensive audiovisual and control system was developed for the 99 meeting rooms, an auditorium and other spaces for different types of needs, including control and presentation systems, comprehensive conference systems, distributed audio platform, and a room reservation system. For each of the meeting rooms was installed an interactive display, a Crestron control system, wireless transmission equipment from laptops or tablets and converters to connect computers via HDMI or VGA, as well as the integration of the sound system for each room and 84-inch screens. Furthermore, three LED screens were installed for the auditorium with an independent audio system for each one, a general audio system with ceiling speakers, digital microphones and sound processing, as this space can be divided into three parts, thus requiring the independent control of each AV system. It should be noted that for this space, as well as the meeting rooms, the room reservation system is managed through a computer or mobile device.

ception and the first and second floor foyers, in addition to an extensive ambient music system in different areas, all with distributed audio equipment, DSP processing and Crestron speakers. During the final presentation of the project, the installed technologies were introduced to the client, who received them with “great enthusiasm”, according to Martín Saúl, CEO of ICAP Global. “Everyone was happy and impressed with the new experiences”, and six months later, during the follow-up, “we found an incredibly low level of questions and complaints”, he says. As a result, the building users can develop collaborative meetings virtually anywhere, both from their computers at their desks, as well as in casual spaces or in meeting rooms.

PROJECT INFORMATION: Instalación e integración de sistemas de colaboración en las nuevas oficinas de CocaCola en Buenos Aires.

INSTALLED BRANDS: Crestron, Leyard, Microsoft Exchange.

DURATION OF THE PROJECT: During 2018.

Finally, due to the influx of people between collaborators and visitors, a visualization system with screens of different sizes was installed at the reTOP IOO INTEGRATORS • REPORT 2019

CHAPTER 5

THE WINNERS OF THE TOP 100 INTEGRATORS 2019 IN LATIN AMERICA Being among the first places in the Top 100 of Latin American integrators has its merit, as it is the recognition that colleagues and clients of the AV industry give to each of the companies that participate in the ranking. We talked with the representatives of the companies that ranked in first place for each of the Latin American regions. Some of them had already shared their appreciations about the industry in this reportâ&#x20AC;&#x2122;s 2018 edition, and this year again we asked them to share their thoughts about their forecasts for the Latin American AV market.

Mexico

“WE HOPE TO SEE NEW OPPORTUNITIES TO DEVELOP PROJECTS, AS THE ECONOMY STABILIZES DURING THE NEW GOVERNMENT”.

Multimedia Mexico

Ricardo Jáuregui

With over 30 years of experience, Multimedia is a recognized company in the audio and video integration industry in Mexico. They offer high level consulting services, implementation of projects and maintenance programs in AV solutions, also serving the market of luxury residences with control and entertainment systems for the comfort, safety and enjoyment of its residents. Ricardo Jáuregui is currently the Director of the group of companies known as GME Electronics, to which Multimedia belongs. He has a degree in Marketing, with a Master in Business and Senior Management, and has worked in the AV industry since 1990. Jáuregui recalls that thirty-one years ago, three people founded Multimedia, offering AV services for residences, and later expanding to the corporate and commercial segments, delivering turnkey hightech projects to their clients, growing their team to the current 120 collaborators.

For this professional, “the possibility of starting new business thanks to the vertiginous advancement of technology”, especially when delivering “robust and reliable projects that make our customers happy”, he says is what makes him feel most passionate about the AV industry. We also asked him about his perception of last year’s performance of the AV industry, and Jáuregui mentions that 2018 was “a turning point in recent history, with strong socioeconomic implications that we suffered, because the vertical markets we normally serve stopped their investments”, and notes that, however, they have a realistic goal of maintaining the infrastructure and human resources that they’ve attained during the company’s history. He also has hopes to see new opportunities for the development of projects, as economic indicators begin to stabilize under the new government.

TOP IOO INTEGRATORS • REPORT 2019

Central America

“AS INTEGRATORS WE NEED TO LEARN ABOUT PROJECT MANAGEMENT, FINANCE, SALES, AND EVEN ABOUT INDUSTRIAL SECURITY TO

Vosmedia Guatemala

STRENGTHEN OUR BUSINESSES”.

Sergio Galindo

Vosmedia is an integration company founded in 2006 for multimedial automation through the convergence and tropicalization of technology for the design of audio, video, lighting control, networking, home and building automation, and electronic security solutions. Its general manager and founder is Sergio Iván Galindo Morán, an electronic engineer from the University of San Carlos de Guatemala who also holds a Master in Business Administration from the Egade Business School of the Tecnológico de Monterrey university, with experience in industrial automation. Galindo discovered his love for the audiovisual industry about fifteen years ago while studying for his MBA. “When I was creating my business plan in the business incubator of the TEC of Monterrey, I was inclined to choose this industry because of its viability in Guatemala, and since then, I have been passionate about its interaction with the human senses”.

Also, this professional comments that the AV industry encompasses many challenges, including obsolescence, which he considers to be a phenomenon that happens to occur very quickly: “we’ve seen that, in three-month periods, new products emerge that make their predecessors obsolete, making constant training necessary, because with each new product, we need to learn about it and its works”, he explains. In this regard, Galindo believes that integrators in general do need to learn, not only about the technology, but also about project management, industrial security, finance and sales, although such topics are “not easy to find adapted to our industry”. As for his perception of the AV sector behavior during 2018, Galindo mentions that, “the same as other years that we’ve endured a global financial crisis, it’s necessary to be creative in order to move ahead, despite the circumstances”, and adds that he expects 2019 to be a year of challenges and changes.

Andean Region

“SITUATIONS SUCH AS THE RISE IN THE DOLLAR LEAD US TO SEEK NEW OBJECTIVES, SUCH AS STRENGTHENING

DB Systems Colombia

OUR POST-SALES SERVICE”.

Antonio Sandoval

DB Systems is a Colombian integration company founded in 2009 that offers customized solutions for lighting systems and curtains, audio, video and networking control, creating intuitive and productive spaces with the aim of making a positive impact for their users. The sound engineer, Antonio Sandoval, is their General Manager, who has fourteen years of experience in the audiovisual industry and is passionate about the dynamic and rapid changes in this sector, which lead him “to remain active and eager to learn, striving to be at the forefront of the industry movements”. For Sandoval, 2018 was a year that “began slowly,

with only a few new business opportunities. However, during the second half of the year we got the opportunities we needed to reach the numbers we had projected”, he explains. For this engineer, this is a common situation every four years, when presidential elections take place, which have a “direct impact” on the Colombian economy, similar to what is observed in most Latin American countries. Also, among the AV industry’s continuing changes –which he considers a constant motivation for his work– is the possibility of significantly changing the company’s business model, as it is happening in 2019, which has presented “challenges such as the dollar’s rise, leading us to set objectives such as focusing our work in post-sales service”, he concludes.

TOP IOO INTEGRATORS • REPORT 2019

Brazil

“INTEGRATORS MUST LEARN TO THINK ‘OUT OF THE BOX’ TO ACHIEVE A BETTER AV SOLUTION FOR THE CLIENT”.

Seal Telecom Brazil Cristiano Soares

Seal Telecom is a Brazilian engineering multinational for AV projects development that offers audio and video solutions, unified communications and security. Created in 1999, the company has its quality processes certified by ISO 9001:2015, and through its eleven branches it serves Brazil, Argentina, Colombia, Mexico and the United States markets. Cristiano Felicissimo Soares has been director of Pre-Sales for Latin America since 2014. He’s a Data Processing Technologist specialized in Marketing Administration, with experience in IT since 1994 and has been working in the AV industry since 2010. For Soares, his IT experience has allowed him to “build a very complete knowledge and methodology to understand the needs of our customers, instead of offering solutions based on products. It’s a consultative sales concept that allows us to

combine products to achieve the best solution for the client”, he explains. This same concept is what he considers to be “one of the most important aspects in the AV industry”, as it offers flexibility so that as integrators, “we can meet the clients’ expectations”. However, this is also a weakness that he observes in the industry: “there are many professionals who can’t think out of the box and create innovative solutions, making the sales and work cycle long and inefficient, turning projects into an economic dispute, and no longer technologically functional in favor of the client”, he says. On the other hand, this manager expresses that 2018 was a “spectacular year in overcoming our set objectives and challenges beyond expectations” and he comments that they are “prepared and motivated” in Seal Telecom so that 2019 is a “historic” year in the international market.

Southern Cone

“WE GREW IN 2018 WITH MORE TRAINED, MORE EDUCATED AND MORE DEVELOPED PEOPLE AT COMPANY LEVEL, AND IN

ICAP Global Argentina

2019 WE HOPE TO CONTINUE THIS GROWTH”.

Martín Saúl

ICAP Global is one of the most experienced AV integration companies in the industry, with over 60 years since its establishment, specializing in the creation of collaborative workspaces, IT infrastructure and high-end entertainment. They currently have a payroll of 3,000 employees, offering services in Argentina, Chile, Colombia and Spain, with ISO 9000 certification in design, engineering, and integration, among other processes. Martín Saúl has been the company’s CEO since 2006, a professional in Business Administration with about 30 years of experience in the AV industry. He comments that part of the accelerated growth of the professional audiovisual industry –which is approximately 8% per year– “has to do directly with integration with the IT industry”, he says, because “we use the infrastructure of networks and servers to be able to transmit audio, video and control signals”. “Given the nature of our work as audiovisual integrators, where it is usual to work with architects

and engineers, it’s much easier for us to integrate IT technology than to IT integrators for incorporating audiovisual knowledge”, thus “immensely” strengthening the AV integrators businesses. Likewise, the manager emphasizes the need of an advanced technical education, with certifications “that allow development both in design and in installation and offering service with high standards, using them and taking them to heart”, he asserts. On a different note, Saúl comments that among the difficulties they’ve faced, because of the Argentine economy situation, is “a lack of concreteness for projects, as well as the low budgets our clients have available, which forces us to eliminate some functionalities, meaning all the while we find it very difficult to retain internationally qualified people and resources”. However, he mentions that he remains optimistic because “we know the cycles, the high and low points, and we can adapt. We are also in an industry that’s growing, with an ever increasing AV tools demand”.

TOP IOO INTEGRATORS • REPORT 2019

CHAPTER 6 62

ECONOMIC OUTLOOK WORLDWIDE AND THE AMERICAS

The year 2019 appears to be a period in which global economic uncertainties will intensify and arise on different fronts, which will have an impact on the growth of economic activity in Latin America. Uncertainty about the tighter global financial conditions, and the fall in commodity prices caused by trade tensions between the United States and China which began in late 2018 and that have continued during the first half of 2019, are some of the causes. What’s more, the average GDP growth in the region was also affected by the situation in the second half of the year in Argentina, Nicaragua and Venezuela, which decreased -2.8%, -4.1% and -15% respectively, according to the estimates of the Economic Commission for Latin America and the Caribbean (the ECLAC). The continued weakening of the global and regional economy caused the agency to reduce again its average growth forecast for the Latin American GDP from 1.7% foreseen in December 2018, to 1.3 % in 2019. Also, although the International Monetary Fund (IMF) started the year with more optimistic estima-

tes, in its “World Economic Outlook Update, April 2019” they adjusted growth in Latin America and the Caribbean by 1% in 2018, by 1.4% in 2019 and forecast 2.4%, a 0.2% lower adjustment than calculated at the beginning of this year. These downward revisions are due to a possible “downgrade in Mexico’s growth prospects in 20192020, reflecting lower private investment, and a more severe contraction in Venezuela than previously anticipated”, according to the ECLAC. The new governments in countries such as Brazil and Mexico have raised concerns regarding changes in monetary policies”. Also, Argentine’s economy is projected to “contract in the first half of 2019 as tighter policies aimed at reducing imbalances slow domestic demand”. Moreover, the situation of the Venezuelan economy continues to be critical, and the IMF estimates a collapse in 2020 of 10% higher than projected in its October 2018 update, which “imposes a considerable drag on the projected growth for the region and for the group of emerging market economies”.

1.3%

“GLOBAL TRADE GROWTH

WOULD INCREASE THE

2.9%”.

WILL SLOW TO 3.7% IN 2019, WHILE GLOBAL GDP GROWTH WILL FALL TO

LATIN AMERICAN GDP IN 2019, ACCORDING TO

WORLD TRADE ORGANIZATION

ECLAC.

TOP IOO INTEGRATORS • REPORT 2019

LATIN AMERICA GROWS IN 2019 TO A MORE MODERATE RHYTHM AVERAGE GDP IN LATIN AMERICA ESTIMATION 2018 PROJECTION 2019

3.7% 3.5% 3.0%

3.0% 3.0%

2.6%

1.7% 1.2%

WORLD

1.1%

1.3%

MEXICO ,

ANDEAN

SOUTHERN

AMERICA CENTROAL AMERICA

REGION

CONE

LATIN

AND THE CARIBBEAN

Note: The Latin American and Andean Region averages donâ&#x20AC;&#x2122;t include Venezuela due to its exceptional circumstances. If Venezuela was taken into account, the GDP variation average for the Andean Region would be of -0.6% in 2018 and a projected 0.4% in 2019.

Source: ECLAC and IMF

Regarding the variation of inflation in Latin American countries, the ECLAC estimated an average growth of 1.7% in the region during the first ten months of 2018. The Southern Cone was the subregion that recorded the greatest variation, due to the strong rise of 22.6 percentage points in Argentina in the second half of the year. In contrast, inflation in Central America and Mexico slowed in the first ten months of 2018,

particularly in September and October, owing to the appreciation of currencies and the lower price of oil. Venezuela continues with an overflowing increase in its CPI. In 2017, the inflation reported to the IMF by the Venezuelan National Assembly was 2,616% and by the end of 2018, the agency calculated an approximate figure of 1,370,000%. For 2019, the projections indicate a variation of 10 million percent.

PERCENTAGE VARIATION OF THE CONSUMER PRICE INDEX (CPI) IN 12 MONTHS,BETWEEN OCTOBER 2016 TO OCTOBER 2018. 14 12 10 8 6 4

2016

2017

OCT

SEP

AGO

JUL

JUN

MAY

ABR

MAR

FEB

ENE

DIC

NOV

OCT

SEP

AGO

JUL

JUN

MAY

ABR

MAR

FEB

ENE

DIC

OCT

NOV

2018

MEXICO AND CENTRAL AMERICA THE CARIBBEAN LATIN AMERICA, EXCEPT VENEZUELA Source: ECLAC

All of the above adds to the uncertainty about the implementation of economic policies after the 2018 election season in different Latin American countries, which according to the IMF’s Diálogo a Fondo blog for Latin America, “could discourage future investments and harm the growth prospects for the region”. However, although global trade has been affected by the impacts of the tightening of monetary

policies suffered by the world’s major economies, the Americas have continued their growth in 2018, as reported by the World Trade Organization (WTO), with export growth of 1.1% and import growth of 5.5% as of September of that year for South America. In the following sections of this paper, we will address every subregion, analyzing the circumstances and economic landscape of each country individually.

TOP IOO INTEGRATORS • REPORT 2019

EXPORT GROWTH AND TRADE BALANCE IN MEXICO AND CENTRAL AMERICA 2018 % EXPORT GROWTH 2018

Source: IADB and ECLAC

TRADE BALANCE 2018* Mexico

Costa Rica

Dominican Republic

Guatemala

Honduras

Nicaragua

Panama

-25,469,000

1,042,000

-3,148,000

-7,988,000

-4,078,000

-1,618,000

792,000

In US Dollars. *Estimate by ECLAC

TOP IOO INTEGRATORS â&#x20AC;¢ REPORT 2019

Mexico The improvement in trade with the United States, as well as the reconstruction work following the natural disasters of 2017, resulted in the ECLAC estimating a GDP growth of 2.2% in 2018 to be met. However, prospects continue to be affected by trade tensions because of the renegotiation of the North American Free Trade Agreement with the United States. In 2019, the ECLAC expects GDP to grow by 2.1%, owing to a stronger public and private investment, and to an increase in consumer spending. IMF growth estimates for 2019 and 2020 are 2.1% and 2.2%, respectively, due to a weaker growth momentum in 2018. While the NAFTA renegotiation process –now called USMCA–, included improvements in rules of origin and addressed issues such as small and mediumsized enterprises (SMEs), elimination of technical barriers to trade, customs facilitation, ecommerce,

MEXICO: GDP AND INFLATION, 2016-2018

among others, possible delays in ratification and implementation of the treaty threaten to slow GDP growth for 2019. Regarding trade dynamics, imports of consumer goods from January to October 2018 increased by 12.9%. Alexandra Loboda, managing director at Maersk for Mexico, a Danish overseas cargo carrier, stated: “while Mexican economic growth is forecast to grow slower than initially expected in 2019, it is also being underpinned by sturdy U.S. consumption. However, trade tensions between China and the United States remain a concern”. Imports of AV industry equipment reached USD 4.52 billion FOB (Free on Board) as of 2018, originating mainly from China (42.2%), the United States (28%) and Taiwan (11.9%), according to data from the National Institute of Statistics and Geography (INEGI).

MEXICO IMPORTS OF AV EQUIPMENT

7 6

5 4

2 3 2

1 0

0 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2016

2017

2018

42.2% CHINA

3.7 % THAILAND

28% USA

2.6% INDONESIA

11.9% TAIWAN

11.6% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne - Inegi

Central America and The Caribbean Costa Rica The Costa Rican economy decreased in 2018 due to increased interest rates and a decline in consumer confidence and enterprise confidence, with an expansion of 3% compared to 3.3 % in 2017, according to the ECLAC. In turn, the IMF considers that growth slowed down due to a long election cycle, which required a second round of voting. A year ago, this agency estimated that the country’s production would rebound 3.8% in 2018. This slowdown continues in 2019, according to the report “Evolution of the Monthly Index of Economic Activity (IMAE), April 2019” prepared by the Central Bank of Costa Rica and published in June, which states that, except for the financial and electricity and water services, “the rest of economic activities grew less, or even showed negative variations compared to the previous year, as is the case of agricultural industry, construction and trade”.

The ECLAC estimates that the Costa Rican GDP will grow by 2.9% in 2019, while the IMF forecasts a more optimistic growth of 3.3 %, a boost that would come from the external sector, since domestic demand will continue to show moderate dynamism. On the trade policy front, the new government has stated its intention to administer existing treaties, rather than negotiate new agreements. In this vein, goods imports rose by 5.5% in the first ten months of the year. Specifically, imports of AV equipment between January and November 2018 reached USD 179,109,000 CIF (Cost, Insurance and Freight), according to information from the National Customs Service, China (45.7%), Mexico (21.7%) and the United States (18.4%) being the main origins.

COSTA RICA IMPORTS OF AV EQUIPMENT

COSTA RICA: GDP AND INFLATION, 2016-2018

11 10 9

8 7 6

5 4 3

2 1 0

-1

T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 -2 2016 0

2017

2018

46% CHINA

3.6% HONG KONG

21.7% MEXICO

2% INDONESIA

18.4% USA

8.6% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY NOVEMBER 2018 Source: Descartes Datamyne - National Customs Service TOP IOO INTEGRATORS • REPORT 2019

69 69

Dominican Republic The IMF estimates economic activity to pick up in the country between 2019 and 2020, although at a slower pace than originally anticipated, a deceleration that has been taking place since the beginning of 2018 due to the worsening terms of trade and subdued domestic demand. The IMF estimated Dominican Republicâ&#x20AC;&#x2122;s 2018 economic growth forecast at 6.4%, placing the island among the countries with the highest projected growth in Latin America, and projects a 5.0% growth in 2019. In turn, the ECLAC has more optimistic estimates, projecting a GDP increase of 5.7% for 2019. At the end of the third quarter, the fastest growing sectors were construction and free zones. Services, which constitute the largest sector in the

In the realm of trade, imports of capital goods grew faster (16.0%) than those of consumer goods (7.4%) between January and June 2018, while total exports grew by 8.4% in the same period, driven by the demand in the United States in conjunction with a moderate depreciation of the Dominican peso. Specifically, imports of products from the AV sector in 2017, according to data from the International Trade Center (ITC), reached USD 20,183,000, from China (63.2%), Mexico (17.6%) and the United States (13.4%).

DOMINICAN REP. IMPORTS OF AV EQUIPMENT

DOMINICAN REPUBLIC: GDP AND INFLATION, 2016-2018 9

Dominican economy, grew by 5.7%. The United States will continue to be a key factor in the performance of the services sector and in remittance flows.

7 6

4 3

2 1

1 0

T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2016

2017

2018

63.2% CHINA

2.3% SPAIN

17.2% MEXICO

0.6% SOUTH KOREA

13.4% USA

3.4% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

BY 2017 * Most recent data published by official sources.

Source: ECLAC, based on official data

Source: International Trade Centre (ITC).

El Salvador The Salvadoran economy was expected to grow 2.4 % in 2018, (slightly above the previous year’s 2.3%), according to ECLAC estimates. This result is in line with the 1.8% increase in GDP during the first quarter of 2019, reported in June by the Central Reserve Bank of El Salvador (BCR), mainly fueled by services, construction and trade activities. However, this sustained growth may be affected by various internal and external factors, according to BCR President Carlos Federico Paredes, including “the slowdown of world trade and economy and the United States economy; the trade war between the United States and different countries such as China, India and Mexico; as well as the costs and impact on the economy due to insecurity and violence, and the country’s vulnerability to natural disasters and climate change.”

EL SALVADOR: GDP AND INFLATION, 2016-2018

Nevertheless, the ECLAC expects the Salvadoran economy to grow by 2.4% in 2019, driven by a dynamic domestic market and boosted by remittance flows and foreign trade. It is worth mentioning that in August 2018, the then President Salvador Sánchez Ceren announced an end to diplomatic relations with the Taiwanese Province of China, and the start of a new era of trade and diplomatic ties with China, which would mean that this country could become the second largest market for Salvadoran exports, after the United States. In the first nine months of 2018, goods imports grew by 12.3% in value and volume was up by 3.2%. During 2018, international purchases of AV equipment reached USD 12,829,700, originating mainly from Mexico (38%), the United States (24%) and China (18%).

EL SALVADOR IMPORTS OF AV EQUIPMENT

2 1

0 2 -1 1 0

-2 -3 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2016

2017

2018

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

Source: ECLAC, based on official data

36.7% MEXICO

9.4% PANAMA

24.5% USA

4.0% INDONESIA

17.7% CHINA

6.8% OTHERS

BY 2018 Fuente: Centro Internacional de Comercio (ITC) - Banco Central de Guatemala. TOP IOO INTEGRATORS • REPORT 2019

71 71

Guatemala According to ECLAC estimates, Guatemala’s GDP was expected to grow by 2.9% in 2018, slightly higher than the 2.8% recorded in 2017. The main driver of this growth has been private consumption. The ECLAC forecasts a growth of 3% in 2019. In turn, the IMF estimates an expansion of 2.8% in 2018 and 3.4% in 2019. According to a report published by the IMF in 2018, entitled “Outlook for Latin America and the Caribbean: an uneven recovery”, as in Costa Rica, growth in Guatemala slowed due to a decline in business confidence, added to the affectation of intraregional trade caused by political unrest in Nicaragua.

GUATEMALA: GDP AND INFLATION, 2016-2018

Notwithstanding the above, the ECLAC reported that the economic activity was dynamic in the first half of the year, and highlighted the favorable behavior in the investment of imported capital goods intended for manufacturing, telecommunications and construction. In this context, the increase of merchandise imports was 8.9% owing to higher purchases abroad of intermediate goods. During 2017, imports of AV equipment reached USD 21,762,000, according to information from the Central Bank of Guatemala and the International Trade Center (ITC), the main origins being the United States (39.3%), Mexico (29.3%) and China (18.3%).

GUATEMALA IMPORTS OF AV EQUIPMENT

6 6

5 4 4 3 3 2 2 1 1 0 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 0 2016

2017

2018

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

Source: ECLAC, based on official data

39.3% USA

9% PANAMA

29.3% MEXICO

1.6% HONG KONG

18.3% CHINA

2.5% OTHERS

BY 2017 * Most recent data published by official sources. Source: International Trade Centre (ITC) – Central Bank of Guatemala.

Honduras Honduras is going through a significant slowdown in its economy and in 2018 it grew only by 3.7%, less than the 4.8% achieved in 2017, according to the ECLAC. This economic slowdown can be attributed to a decline in remittances and a drop in the value of exports in the year, owing to a drop in the price of coffee (15.7%), the country’s main export product. In addition to this, the political unrest in Nicaragua over the year impacted international trade, since the interruption of land transport increased the logistical costs for imports and exports. Both the ECLAC and the IMF agree that GDP will remain at a growth of 3.6% in 2019, thanks to the continued expansion of the United States, the country’s main trading partner, and a decline in fuel prices.

T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2017

In the first seven months of 2018 foreign trade fell by 2.9% in the value of total goods exports, while that of imports rose by 9.9%. It should be noted that imports of AV equipment in 2018 reached USD 127,090,000 CIF and the main origins were Mexico (44.4%), China (38.1%) and the United States (9.2%), according to data from the General Directorate of Customs Franchise Control.

HONDURAS IMPORTS OF AV EQUIPMENT

HONDURAS: GDP AND INFLATION, 2016-2018

2016

With respect to trade policy, the free trade agreement between Central America and the Republic of Korea is in the process of being endorsed by the National Congress. Also, Honduras and Ecuador signed an agreement on administrative cooperation in customs matters, with a view to negotiating a partial scope and economic complementary agreement between the two countries.

2018

44.4% MEXICO

1.7% COLOMBIA

38.1% CHINA

1.5% INDONESIA

9.2% USA

5.2% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

BY DECEMBER 2018 Fuente: Cepal con información oficial

Source: Descartes Datamyne – General Directorate of Control of Customs. TOP IOO INTEGRATORS • REPORT 2019

73 73

Panama The ECLAC estimated a growth of 4.2% in the Panamanian economy in 2018, and while it remains one of the most dynamic Latin American countries, growth has been lower than expected because of a general loss of momentum in different sectors of the country’s economy such as commerce, tourism and hotels, plus a prolonged strike in the construction sector, a situation that contrasts with the projection of the previous year that considered this sector as “one of the most dynamic” for this economy. For the ECLAC the Panamanian economy is forecast to grow by 5.6% in 2019 due to a recovery of the construction sector, driven by a variety of infrastructure investment projects. The IMF is more optimistic in its forecast, estimating a growth of 4.6% for 2018 and 6.8% in 2019.

PANAMA: GDP AND INFLATION, 2016-2018

The sectors that remained dynamic were transport, storage and communications, owing to a rise of 10.3% in the operations of the Panama Canal. An increase of 10.3% was observed in exports due to higher re-exports from the Colón Free Trade Zone (10.3%) and increased purchases of goods in ports (31.4%). An 8.2% rise in imports was due to increased purchases of goods for local use and goods purchased in ports and the customs-free zone. Specifically, imports of AV industry products in 2018 reached USD 149,017,000 FOB, which entered the country mainly from the United States (22.7%), Mexico (19%), and China (14.8%), while 25.6% were reported to enter from the Colon Free Trade Zone, according to data from the National Customs Authority.

PANAMA IMPORTS OF AV EQUIPMENT 4

5 4

3 1 2 0

1 0

-1 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2016

2017

2018

25.6% FREE ZONE*

14.8% CHINA

22.7% USA

4.8% HONG KONG

19% MEXICO

13.2% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

*Colon Free Trade Zone

BY DECEMBER 2018 Source: ECLAC, based on official data

Source: Descartes Datamyne – National Customs Authority

EXPORTS AND TRADE BALANCE IN THE ANDEAN REGION AND THE SOUTHERN CONE 2018 % EXPORT GROWTH 2018

TRADE BALANCE 2018* Colombia -7,892,000 Ecuador -170,000 Perú 5,100,000

Brasil 20,369,000

Argentina -9.624.000 Chile 2,846,000 Uruguay 2,716,000

In US dollars *Estimate by ECLAC

Source: IADB and ECLAC

TOP IOO INTEGRATORS • REPORT 2019

Andean Region Colombia In Colombia the economic recovery continued to be driven by higher oil prices in 2017 and, increasingly by stronger private investment, which was also driven by the dissipation of political uncertainty, following the election of President Iván Duque. Thus, the IMF estimated that Colombia’s economic growth would increase by 2.8% for 2018 and projects a growth of 3.6% for 2019, driven by the positive impact of changes in investment tax policy. The ECLAC states that Colombian economic activity has shown signs of recovery, with annual growth rates not seen since 2015, and projects a GDP growth of 3.3% in 2019. This growth has been driven by household and public consumption.

However, despite the positive economic behavior, the Colombian peso continues to devalue against the dollar (along with the Argentine peso and without considering the Venezuelan bolivar), losing almost 400 pesos (-13.3% depreciation) between January 2015 and September 2018, according to the indicators of the Latin American Federation of Banks (Felaban). The ECLAC also points out that imports of goods and services increased by 7%, driven by higher domestic demand, and exports also rose, albeit at a slower pace. Regarding imports of AV equipment, USD 1.05 billion FOB was reached as of December 2018, originating from Mexico with 57.7%, China with 30.2% and the United States with 3%, according to the records of National Directorate of Taxes and Customs (DIAN).

COLOMBIA IMPORTS OF AV EQUIPMENT

COLOMBIA: GDP AND INFLATION, 2016-2018 4

12 10

3 8

6 4

1 2

T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2016

2017

2018

57.7% MEXICO

1.3% MALAYSIA

30.2% CHINA

1% VIETNAM

3% USA

6.9% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne – DIAN

Ecuador In spite of the recovery of economic activity recorded in Ecuador in 2017, this momentum appears to be cooling off, and in 2018 there was a growth of 1% of GDP, in contrast to the 2.4% recorded in 2017 by the ECLAC. The IMF agrees and projects an even greater deceleration for 2019, with only a 0.7% increase. Fiscal consolidation, more limited access to the international capital market and a moderate decline in oil output are the main headwinds to economic growth, according to both the IMF and the ECLAC.

ECUADOR: GDP AND INFLATION, 2016-2018

The consumer price index is also affected by these slow economic dynamics, since although the deflationary trend of the last three years was reversed, cumulative inflation from January to October was only 0.42%. In the realm of trade, the most buoyant imports were oil derivatives and consumer goods, which grew by 36.0% and 18.4%, respectively. Particularly, the imports of AV equipment as of December 2018 reached USD 413,072,000 CIF, with China (43.2%), United States (15.4%) and Panama (12%) being the main origins.

ECUADOR IMPORTS OF AV EQUIPMENT

8 7

6 5

4 1

3 2

-1

1 0

-3 -5

-1 -2 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2016

2017

2018

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

43.2% CHINA

10.5% NORTH KOREA

15.4% USA

5.1% MEXICO

12% PANAMA

13.9% OTHERS

BY DECEMBER 2018

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Source: Descartes Datamyne - National Customs Service TOP IOO INTEGRATORS â&#x20AC;¢ REPORT 2019

77 77

Peru In spite of the corruption scandals which occurred in 2018 and the impacts of El Niño phenomenon in 2017, Peru’s economy keeps growing, reaching 3.8% in 2018 and 3.6% in 2019, driven by consolidation of domestic consumption and mining investment, according to the ECLAC’s projections. Both the IMF and the Peruvian Economy Institute (IPE) agree with ECLAC estimates and forecast an expansion of 4% in 2019, which makes the country’s economic growth the second-highest in the Region after Bolivia’s (4,2%). According to the manager of IPE, Diego Macera, the

country’s GDP will be driven by private investment that would register an expansion of 6.9%, added to a greater dynamism because of the Pan American Games held in Lima in July 2019. However, both imports and imports will slow down due to the decline in mining production. Even so, imports of AV equipment reached USD 873,180,000 FOB in 2018, mainly from China (45.5%), Mexico (43.5%) and the United States (2%), according to data from the National Superintendency of Customs and Tax Administration (SUNAT).

PERU IMPORTS OF AV EQUIPMENT

PERU: GDP AND INFLATION, 2016-2018 6

4 6

2 2

T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2016

2017

2018

45.5% CHINA

1% ITALY

43.5% MEXICO

0.9% MALAYSIA

2% USA

7.1% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne – Sunat

Venezuela The collapse of Venezuela’s economy continues and none of the international economic organizations have encouraging expectations. The IMF estimates a fall of -18% of real GDP in Venezuela, which would add to a contraction of approximately -45% since 2013, the last year in which this figure recorded some growth. In turn, the ECLAC points out that GDP shrinkage would be around -15%, and that “if the tight external situation persists, a further decline in GDP (-10.0%), rising inflation, a sharp increase in monetary aggregates, and a significant depreciation of the currency are projected”, added to a massive outward migration of Venezuelan citizens. The evolution of political events after Juan Guaidó swore himself in an interim president in January this year, add another layer of uncertainty to the country’s outlook. With monetary funding of bulky fiscal deficits projec-

ted to continue coupled with collapsing money demand, Venezuela’s inflation rate will rise even more, reaching 10 million percent, according to the IMF’s estimates. On May 28, The Central Bank of Venezuela acknowledged the devastation of the country’s economy by announcing that inflation had reached 130,060% in 2018 and that GDP had halved since 2013, thus ending three years of silence on the country’s statistics. Further, while the increase in crude oil prices has allowed exports to grow by 9%, imports have fallen by 26%, affecting all industries, including the audiovisual sector. As of November 2018, these only reached USD 14,108,000 FOB, originating mainly from China (55.1%). The IMF indicates that projecting the economic outlook in Venezuela is complicated by the lack of discussions with the authorities (the last consultation took place in 2004), long intervals in receiving data with information gaps, making it difficult to interpret certain reported economic indicators.

VENEZUELA IMPORTS OF AV EQUIPMENT

55.1% CHINA

3.3% SPAIN

31.4% USA

3.6% PANAMA

5.6% OTHERS

HONG KONG

BY NOVEMBER 2018 Source: Descartes Datamyne with official information of partner countries.

TOP IOO INTEGRATORS • REPORT 2019

79 79

Brazil The Brazilian economy is expected to grow, mainly driven by a recovery of private demand in 2018 and 2019, with a GDP growth of 1.4% and 2.4% respectively, according to the IMF estimates, breaking the 2 percent barrier for the first time since 2013. Bolsonaro government’s market-friendly reform agenda helped boost business confidence and improve short-term growth prospects.

of its period. Economy Minister Paulo Guedes said in May that GDP growth would return to 2% or 3% once Congress approves the government tax reforms, including the revision to the pension system.

The IMF revised downward the growth forecast for 2018 due to the disruptions caused by the nationwide strike by truck drivers and tighter financial conditions. However, the IMF still expects growth to moderate to 2.2% in the medium term.

Regarding foreign trade, while imports grew by 21.8% in 2018 according to the ECLAC estimates, Brazil’s economy is still considered very closed, and the government aims to “open more the country to foreign trade”, as indicated in the IMF blog Diálogo a Fondo, where it is also stated that “Brazil’s trade flows (exports plus imports), average a minimal 25% of its GDP, making the country one of the least open amongst G-20 countries”.

It is important to note that the economic policy’s implementation stumbled because of the existing uncertainty due to the political fragility of the incumbent administration suffered at the beginning

Thus, imports of AV equipment until December 2018 reached USD 725,413,000, originating mainly from China (70%), the United States (6.1%) and South Korea (3.6%).

BRAZIL IMPORTS OF AV EQUIPMENT

BRAZIL: GDP AND INFLATION, 2016-2018 4

14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 -1

3 2 1 0 -1 -2 -3 -4 -5 -6

T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2016

2017

2018

70% CHINA

3.2% JAPAN

6.1% SOUTH KOREA

2.5% TAIWAN

3.6% USA

14.6% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne – Aladi

Southern Cone Argentina

Despite the positive performance of the economy in 2017, with a growth of 2.9%, in the second half of 2018 the activity contracted and the ECLAC estimated that GDP would fall -2.6%, and both the ECLAC and the IMF project a decrease between -1.6% and 1.8% for 2019. It should be noted that, after the election season in October 2019, the performance of the Argentine economy could be further affected, taking into account the victory of the Peronist party in the primary elections held in August. A variety of circumstances caused this instability in the southern country, including the currency crisis of the second and third quarters of 2018, which entailed a sharp devaluation of the peso, a pronounced interest-rate hike, accelerating inflation and a substantial drop in real family incomes. Because of the situation, the Argentine peso along with the Colombian peso would be the most devalued currencies in Latin America (except the Ve-

ARGENTINA: GDP AND INFLATION, 2016-2018

nezuelan bolivar), losing 32 pesos between March 2015 and September 2018, according to Felaban records, and would reach a depreciation of 50.6% as of January 2019, according to the Argentine newspaper Infobae. However, despite the current difficulties, the IMF is optimistic, claiming that “inflation and inflation expectations have been on a downward trend since October, and look set to continue a slow decline in 2019”, allowing a recovery of economic activity from the second quarter of the year. Inflation acceleration, which reached 31.2% yearon-year, had a negative effect on imports, which fell by -2,4% and, to a lesser extent, on exports (-0,2%). The most recent figures for all imports, including AV equipment, are until June 2017, which reveal a low level of trade in this type of goods, reaching USD 65.6 million FOB coming from China (60.6%), Brazil (8.5%) and Vietnam (7%), according to data from the General Directorate of Customs.

ARGENTINA IMPORTS OF AV EQUIPMENT

6 6

5 4 4 3 3 2 2 1 1 0 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 0 2016

2017

2018

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

60.6% CHINA

6.6% MEXICO

8.5% BRAZIL

4.1% USA

6.9% VIETNAM

13.2% OTHERS

BY JUNE 2017 * Most recent information reported by official data. Source: Descartes Datamyne – General Directorate of Customs. TOP IOO INTEGRATORS • REPORT 2019

81 81

Chile The economy’s growth rate for 2018 was more than double, reaching 3.9% and will maintain this level of increase between 2019 and 2020, according to the projections of the ECLAC and the IMF. This increase will be driven by robust private consumption and buoyant investment, coupled with the implementation of the authorities’ structural reform agenda, which would lead to “a more favorable growth outlook”.

peso against the dollar. The ECLAC projects that this behavior will continue throughout 2019.

However, while GDP growth was driven by domestic demand and investment, consumption slowed down from the second quarter of 2018 onward due, in part, to higher unemployment and to an upward pressured inflation (2.9%) caused by the depreciation of the

In turn, imports of equipment for the AV industry in 2018 reached USD 1.01 billion CIF, coming mainly from South Korea (34.6%), China (19.5%) and the United States (16.2%), according to data from the National Customs Service.

CHILE IMPORTS OF AV EQUIPMENT

CHILE: GDP AND INFLATION, 2016-2018 7

-1

T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2016

2017

Regarding commercial dynamics, in 2018 there was a decrease in the balance in favor of the trade balance due to the increase in imports (9.5% and 13.6% in 2017 and 2018, respectively), which more than offset the growth of exports of goods and services (13% and 10% in 2017 and 2018).

2018

34.6% SOUTH KOREA

15.6% HONG KONG

19.5% CHINA

1.5% FRANCE

16.2% USA

12.6% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne – National Customs Service

Paraguay Paraguay will be one of the few Latin American countries with an outstanding growth in its GDP in 2018, which will reach 4.2%, above the regional average, underpinned by service, manufacturing and construction sectors. However, economic activity was less dynamic in the second half owing to the recession that occurred in Argentina, which has affected trade in border areas. Still, the ECLAC estimates GDP growth of 4.2% for 2019.

and a larger share for services (34.5%) and industry (68.1%).

It should be noted that the Paraguayan economy grew by 30% between 1994 and 2014, according to data published in early 2018 by the Central Bank of Paraguay, which showed a smaller share for the primary sector (-16.1%)

Imports of products from the AV sector in 2018, according to data from the International Trade Center (ITC), reached USD 34,915,400, coming from China (82.5%), Mexico (7.1%) and Hong Kong (2.8%).

The Bank projected an inflation of 3.8% for the end of 2018, although in 2019, a strengthening dollar could exert pressure on domestic prices, but inflation is expected to remain within the policy range established, at no more than 5%. Indeed, the guarani depreciated by about 6% against the dollar in the first 11 months of the year.

PARAGUAY IMPORTS OF AV EQUIPMENT

PARAGUAY: GDP AND INFLATION, 2016-2018

11 10 9

8 7 6

5 4 3

2 1 0

-1

T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 -2 2016 0

2017

2018

82.5% CHINA

2.4% USA

7.1% MEXICO

2.0% SOUTH KOREA

2.8% HONG KONG

3.2% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY 2018 Source:ITC. TOP IOO IOO INTEGRATORS INTEGRATORS •• REPORT REPORT 2019 2019 TOP

83 83

Uruguay The deterioration of the Uruguayan economy will continue at least during the first months of 2019, according to ECLAC estimates, despite the favorable beginning of the year, because of global financial conditions, and especially because of the lower momentum of regional economies. The growth was 1.9% in 2018 and the downward trend will continue in 2019, with only 1.5%, according to the Commission.

The Monetary Policy Committee established a contractionary monetary policy during 2018, which helped to partially contain the inflationary pressures generated by the depreciating exchange rate, so the inflation rate would be around 8% and 9%, very close to the target of 7%. However, the peso depreciation against the U.S. dollar is expected to continue for the next months.

In turn, the IMF agrees that the worsening outlook for Argentina and Brazil, along with the drought that affected Uruguay and Argentina, and peso depreciation led to a growth of only 2% in 2018. However, the IMF is much more optimistic for 2019, projecting a rise of 3.2%

Regarding trade dynamics, while the exports of goods is slowing, imports of goods and services will increase moderately, so the current account trade balance will be slightly negative. Specifically, imports of AV equipment in 2018 reached USD 129,084,000 CIF, mainly from China (61.9%), followed by Mexico (17.1%) and the United States (5.4%), according to data from the General Directorate of Customs.

It highlights the favorable behavior of the commerce, restaurants and hotels sector, which have been the main drivers of growth during the year.

URUGUAY: GDP AND INFLATION, 2016-2018

URUGUAY IMPORTS OF AV EQUIPMENT

12 10

8 3 6 2 4 1

2 0 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2016

2017

2018

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

61.9% CHINA

2.9% VIETNAM

17.1% MEXICO

2.2% SOUTH KOREA

5.4% USA

10.5% OTHERS

BY DECEMBER 2018 Source: Descartes Datamyne â&#x20AC;&#x201C; General Directorate of Customs

TOP IOO INTEGRATORS â&#x20AC;¢ REPORT 2019

ANNUAL GDP GROWTH %

2019** 2018* 2017

MEXICO, CENTRAL AMERICA AND THE CARIBEAN

WORLD

-4

-3

3.5 3.7 3.7

LATIN AMERICA

1.7 1.2 1.3

MEXICO

2.1 2.2 2.1

COSTA RICA

2.9 3.0 3.3

GUATEMALA

3.0 2.9 2.8

HONDURAS

3.6 3.7 4.8

NICARAGUA

-2.0 -4.1 4.9

DOMINICAN REP

5.7 6.3 4.6

PANAMA

5.6 4.2 5.3

-2

-1

*Estimation **Projection Source: ECLAC

ANDEAN REGION

-20

-15

WORLD

3.5 3.7 3.7

LATIN AMERICA

1.7 1.2 1.3

BOLIVIA

4.3 4.4 4.2

COLOMBIA

3.3 2.7 1.8

ECUADOR

0.9 1.0 2.4

-10

PERU

3.6 3.8 2.5

VENEZUELA

-10 -15 -13

-5

3 4

BRAZIL & SOUTHERN CONE

1.7 1.2 LATIN AMERICA 1.3 2.0 BRAZIL 1.3 1.1 -1.8 ARGENTINA -2.8 2.9 3.3 CHILE 3.9 1.5 URUGUAY

-4

-3

-2

-1

1.5 1.9 2.7

TOP IOO IOO INTEGRATORS INTEGRATORS •• REPORT REPORT 2019 2019 TOP

Index of references Infobae, “El peso argentino fue la moneda emergente que más valor perdió en el último año”, Press publication, January 13, 2019. América Economía, “Economía peruana crecería 4% en 2019 y estaría entre líderes de la región, estima el IPE”, Press publication, March 21, 2019. América Economía, “Brasil recortará pronóstico de crecimiento del PIB en 2019 por debajo del 2%, dice ministro de Economía”, Press publication, May 14, 2019. El Colombiano, “Banco Central de Venezuela admite devastador estado de la economía”, Press publication, May 29, 2019. Economic Commission for Latin America and the Caribbean (ECLAC), International Trade Perspectives for Latin America and the Caribbean, 2018 (LC/PUB.2018/20-P), Santiago, 2018. Economic Commission for Latin America and the Caribbean (ECLAC), Preliminary Overview of the Economies of Latin America and the Caribbean, 2018 (LC/PUB.2019/1-P), Annual report, Santiago, 2019. Inter-American Development Bank (IADB), Estimates of trade trends in Latin America and the Caribbean, Annual report, 2019 edition. International Monetary Fund (IMF), Regional Economic Outlook. Western Hemisphere: an uneven recovery, October 2018. International Monetary Fund (IMF), World Economic Outlook (WEO), April 2019 update, Washington, DC, April 2019. Central Bank of Costa Rica, “Evolution of the Monthly Index of Economic Activity (IMAE, in Spanish), April 2019”, Press Release, June 18, 2019. Central Reserve Bank of El Salvador, CentralAmericaData.com, “Economía salvadoreña crece 2% en el I trimestre”, Press release, June 28, 2019. Economic Commission for Latin America and the Caribbean (ECLAC), “ECLAC Lowers its Economic Growth Estimates for Latin America and the Caribbean: GDP will Increase 1.3% in 2019”, Press release, April 11, 2019. Institute of Research in Economic Sciences of the University of Costa Rica, “Análisis del desempeño de la economía y pronóstico para el II trimestre del 2018”, Press Release, January 2019. International Monetary Fund (IMF), “América Latina y el Caribe en 2019: Una expansión moderada”, Diálogo a Fondo blog post, January 25, 2019. International Monetary Fund (IMF), “El gráfico de la semana: El impacto del comercio internacional en las industrias brasileñas”, Diálogo a Fondo blog post, March 18, 2019. World Trade Organization (WTO), “La OMC rebaja las perspectivas sobre el comercio mundial ante la acumulación de riesgos”, Press release, September 27, 2018.

Databases: International Trade Centre (ITC). With information from UN Comtrade (Database of Trade Statistics of the United Nations) and official sources: • Dominican Republic: UN Comtrade. • El Salvador: Central Reserve Bank. • Guatemala: Central Bank of Guatemala. • Paraguay: General Directorate of Customs. Descartes Datamyne (www.datamyne.com). With information from official sources:

• Argentina: General Directorate of Customs. • Brazil: Latin American Integration Association (ALADI). • Chile: National Customs Service. • Colombia: National Directorate of Taxes and Customs (DIAN). • Costa Rica: National Customs Service. • Ecuador: National Customs Service. • Honduras: Directorate General for Control of Duty-Free Imports. • Mexico: National Institute of Statistics and Geography of Mexico (INEGI). • Panama: National Customs Authority. • Peru: National Superintendency of Customs and Tax Administration (SUNAT). • Uruguay: General Directorate of Customs. • Venezuela: official information from partner countries.

Latin American Federation of Banks (FELABAN), Indicators Exchange rate (as compared to the US dollar), official website (http://indicadores.felaban.net), data as of September 2018. Analyzed Harmonized System Codes (HS-codes)*: HS-Code**

Description

Electrical machinery and equipment and parts thereof; sound recorders and reproducers; television image and sound recorders and reproducers, parts and accessories of such articles.

8517

Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data (including wired/wireless networks), excluding items of 8443, 8525, 8527, or 8528.

8517.69

Communication apparatus (excluding telephone sets or base stations); machines for the transmission or reception of voice, images or other data (including wired/wireless networks), n.e.c. in item no. 8517.6

8518

Microphones and their stands; loudspeakers, mounted or not in their enclosures; headphones and earphones, combined or not with a microphone, and sets of a microphone and one or more loudspeakers; audio frequency and electric sound amplifiers and sets.

8518.10

Microphones and stands therefor.

TOP IOO INTEGRATORS • REPORT 2019

8518.22

Loudspeakers; multiple, mounted in the same enclosure.

8518.29

Loudspeakers; not mounted in their enclosures.

8518.40

Amplifiers; audio-frequency electric.

8518.50

Amplifier sets; electric sound.

8519

Sound recording or reproducing apparatus.

8519.81

Sound recording or reproducing apparatus; using magnetic, optical or semiconductor media, n.e.c. in item no 8519.20, 8519.30 or 8519.50.

8519.89

Sound recording or reproducing apparatus; n.e.c. in heading no 8519.

8521

Video recording or reproducing apparatus.

8521.90

Video recording or reproducing apparatus; other than magnetic tape-type.

8525

Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders.

8525.80

Television cameras, digital cameras and video camera recorders.

8528

Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus.

8528.52

Monitors; other than cathode-ray tube; capable of directly connecting to and designed for use with an automatic data processing machine of heading 84.71.

8528.59

Monitors other than cathode-ray tube; n.e.c. in subheading 8528.52, whether or not in color.

8528.62

Projectors; capable of directly connecting to and designed for use with an automatic data processing machine of heading 84.71.

HS-Code

Descripción

8528.71

Reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus; not designed to incorporate a video display or screen.

8528.72

Reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus; incorporating a color video display or screen.

Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, n.e.c.; illuminated signs, illuminated name-plates and the like; prefabricated buildings

9405

Lamps, light fittings; including searchlights, spotlights and parts thereof, n.e.c.; illuminated signs, name-plates and the like, having permanently fixed light source and parts thereof n.e.c. or included.

9405.10

Chandeliers and other electric ceiling or wall light fittings; excluding those used for lighting public open spaces or thoroughfares.

9405.40

Lamps and light fittings; electric, n.e.c. in heading no. 9405.

* For the imports charts and graphs by company of Chapter 1, this report only considered the Harmonized System Codes of products related to the audiovisual industry, for transactions carried out until December 2018. ** It is important to note that these tariff classifications include equipment, components and parts of Professional Audio and Video, along with consumer products, since the customs agencies of each country do not make a differentiation between both types of equipment and components for the import process. Technical Sheet “TOP BRANDS IN LATIN AMERICA” survey Dates of data collection: April 1 to 30, 2019. Data collection technique: Online survey on Encuestadatos.com platform. Methodology: nine multiple-choice questions. Topics to which it refers: Selection of one or more of the most used brands of AV equipment. Target group: Exclusively the companies of the Top 100 Latin American Integrators 2019. Survey developed by Latin Press, Inc.

TOP IOO INTEGRATORS • REPORT 2019

ADDENDUM

LATIN AMERICAN INTEGRATORS

2020

RANKING BY REGION

Mexico No.

COMPANY

CREATIO (before Seesa)

Videoconferencing, telemedicine, display centers, digital signage, streaming and unified communications

Cristian Bautista

cristian@creatio.lat

+52 55 8589 8600

www.creatio.lat

GRUPO ACT

Video conferencing, audio conferencing, CCTV, VoIP

César Centeno

ccenteno@grupoact.com

+52 81 8333 9821

www.grupoact.com

MULTIMEDIA

Corporate, educational, home theater, digital signage

Mariana Aguilar

maguilar@multimedia.com.mx

+52 81 2090 1828

www.multimedia.com.mx

GRUPO NIZA

Corporate, educational, residential, digital signage

Mariana García

mariana.garcia@gruponiza.com

+52 55 5207 0888

www.gruponiza.com

C3NTRO TELECOM

Videoconferencing, audio, video, unified communications, digital signage

Omar García

omar.garcia@c3ntro.com

+52 55 5174 8040

www.c3ntro.mx

VIEWHAUS SISTEMAS

Corporate, educational, government, specialized, broadcast and television

Juan Carlos Medina

juancarlos@viewhaus.com.mx

+52 33 3123 9355

www.viewhaus.com

APLITEC INGENIERÍA

Audio, automation, control, lighting, theater engineering and video

José Luis Olvera

jlolvera@aplitec.com.mx

+52 99 8892 7712

www.aplitec.com.mx

ARTCOUSTIX

Audio, video, control and special engineering

César Zenil

czenil@artcoustix.com

+52 55 5598 6016

www.artcoustix.com

SEAL TELECOM

Theater, meeting rooms, cinema, buildings

Eduardo Aguilar

eduardo@sealtelecom.com.mx

+52 55 5594 0390

www.sealtelecom.com.br

G4 AUDIO Y VIDEO

Video conferencing, telepresence, auditoriums, home theater

Francisco Zamorano

g.ventas@g4audio.mx

+52 55 5564 5742

www.g4audio-video.com.mx

SEGMENT

REPRESENTATIVE

WEB INFO

POSITION

9,28%

↑

9,17%

↑

8,57%

↓

7,84%

↓

7,78%

═

7,41%

↑

7,13%

↓

5,67%

↑

5,29%

↑

5,14%

↓

No.

COMPANY

SEGMENT

CENTRO DE AUDIO, VIDEO Y COMUNICACIONES

Corporate, automation, video conferencing, business audio, home theater

INTELIKSA

Audio, automation, lighting, residential and corporate

ENCORE INTEGRATED SOLUTIONS

Corporate, social and shows

SSL DIGITAL

Digital signage, content creation

AUDITY

Acoustics, home automation, audio and video, WiFi / IT networks, eco-technologies

AV PRESTIGE

Audio, video, multimedia, cinema, automation

GRUPO COVIX

Audio, video, automation, conference rooms, video walls

WIREDHOUSE

Residential, corporate, commercial, audio, video, automation, lighting

KOLO

Digital signage, content creation, training

TEDD - GRUPO TELETEC

Audio, video and lighting for theaters and museums

REPRESENTATIVE

WEB INFO

Manuel Carselle

mcarsell@cavc.com.mx

+52 55 5373 4456

www.cavc.com.mx

Enrique Granados

egranados@inteliksa.com

+52 55 5026 6969

www.inteliksa.com

Karen Moreno

karen.moreno@encore-mx.com

+52 55 5260 2491

www.encoreglobal.com/mx

Guillermo Preciado

gpreciado@ssl.com.mx

+52 55 5985 6007

www.ssl.com.mx

Ernesto Xavier Guerrero

eguerrero@audity.mx

+52 33 1591 0742

www.audity.mx

Alfonso Vélez

alfonso.velez@avprestige.com.mx

+52 22 2298 2119

www.avprestige.com.mx

Francisco Hernández

francisco@grupocovix.com

+52 55 5568 6364

www.grupocovix.com

David Eugenio Hernández

dhernandez@wiredhouse.com.mx

+52 81 1133 8333

www.wiredhouse.com.mx

Germán Robles

g.robles@kolo.digital

+52 55 1107 8686

www.kolo.digital

Enrique Lask Marcoschamer

enrique@tedd.com.mx

+52 55 3000 1870

www.tedd.com.mx

POSITION

4,10%

↑

3,11%

═

3,07%

↑

3,05%

↑

2,94%

═

2,42%

↓

2,30%

↓

2,12%

═

1,99%

↓

1,61%

↓

* Percentage of recognition and trajectory of Integration companies in Mexico.

TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

Central America and the Caribbean No.

COMPANY

SEGMENT

REPRESENTATIVE

WEB INFO

José Álvarez

josealvarez@digitechcr.com

+506 2228 6066

www.digitechcr.com

Videoconferencing, audio, video, digital signage, residential

Renata Solano

renata@hot.cr

+506 2272 8095

www.hot.cr

AXIOMA

Building automation, structured cable, power quality

José Rolando Alvarado

rolando.alvarado@axioma.co.cr

+506 2290 9243

www.axioma.co.cr

COMUNICACIONES GLOBALES

Projection, education, videoconferencing

Alejandro Carbajal

alejandro.carbajal@ comunicacionesglobales.com

+504 2263 4444

www.comunicacionesglobales.com

VOSMEDIA

Multimedia and building automation, smart classrooms

Sergio Galindo

sigalindo@vosmedia.com

+502 2387 0700

www.vosmedia.com

Audio, video and residential and commercial lighting

María José Rodriguez

majorodriguez@audio-conceptos.com

AUDIO CONCEPTOS

+502 2460 7044

www.audio-conceptos.com

ADVANCED TECHNO PRODUCTS

Audio, video, lighting, home automation, education

Edgardo Cossu

ecossu@ciabtesh.com

+507 264 4975

www.advancedtechno.net

SIGNO

Automation, visual systems, communication

Karen Rivera

karen-rivera@signo.com.sv

+503 2209 0808

www.signo.com.sv

MUSITEMPO

Audio, automation, commercial, residential

Fernando Hernández

fhernandez@musitempo.com

+809 548 6664

www.musitempo.com

Carlos Ruiz

cruiz@conectividad.com

CONECTIVIDAD

Audio, video, unified communications for education, corporate and business

+506 2283 5250

www.conectividad.com

ABASTOS Y SERVICIOS

Audio, video, automation, CCTV, unified communications

Roberto Ruiz

r.ruiz@abasto-servicios.com

+1 809 732 6655

www.abasto-servicios.com

Alberto McQueen

amcqueen@isg.com.pa

ISG

Multimedia, audiovisual, automation, home automation, lighting control, digital signage

+507 398 2394

www.isg.com.pa

NUTECH ENGINEERING

Theaters, audio video residential automation home theater

Erick Jiménez

e.jimenez@nutechengineering.com

+1 809 221 7536

www.nutechengineering.com

INTECH ENGINEERING

Audiovisual and control systems for corporate and commercial markets

Albeiro García

gerencia@intech-engineering.com

+507 390 8083

www.intech-engineering.com

ADARA

Residential, lighting, control, audio and video

Carol Saravia

csaravia@adara.com.gt

+502 2429 7655

www.adara.com.gt

DIGITECH

Audio, video, lighting

HOME & OFFICE TECHNOLOGIES

* Percentage of recognition and trajectory of Integration companies in Central America & The Caribbean.

COUNTRY

POSITION

COSTA RICA

17,17%

↑

COSTA RICA

10,15%

↑

COSTA RICA

8,07%

↑

HONDURAS

7,92%

↑

GUATEMALA

7,62%

↓

GUATEMALA

6,44%

↑

PANAMA

6,23%

↑

EL SALVADOR

5,77%

═

DOMINICAN REPUBLIC

4,95%

═

COSTA RICA

4,61%

↑

DOMINICAN REPUBLIC

4,36%

↓

PANAMA

4,34%

↑

DOMINICAN REPUBLIC

4,30%

↑

PANAMA

4,23%

↓

GUATEMALA

3,83%

↑

Andean Region No.

COMPANY

SEGMENT Video, control centers, automation

REPRESENTATIVE

WEB INFO

Ruby Judith González

csicomercial@centrosdecontrol.com

+57 1 655 9288 +593 2 600 6336

www.centrosdecontrol.com

GRUPO CSI

VIDEOCORP

Audio, video, videoconference, corporate

Daniel Bernate

dbernate@videocorp.com

+57 1 616 8255

www.videocorp.com

ULTIMATE TECHNOLOGY

Automation, lighting, audio, video, audiovisual solutions, technical support

Lucas Valencia

lucas.valencia@ultimate.com.co

+57 6 324 2637

https://ultimate.com.co

INTEGRACIÓN AV

Corporate, residential, control rooms

Juan Carlos Gutiérrez

jgutierrez@integracionav.com

+57 1 373 9538

www.integracionav.com

DB SYSTEMS

Luis Fernando González

lgonzalez@dbsystems.com.co

+57 1 213 7949

http://dbsystems.com.co

VIRTUALIKA

Jorge Cabello

jorge.cabello@virtualika.com

+593 4 263 1190

www.virtualika.com

PROYECTOS MULTIMEDIA

Audiovisual

Iván Carlos Canales

icanales@proyectos-multimedia.com

+51 1 348 7484

www.proyectos-multimedia.com

DATECSA

Audio, video, automation, digital signage

Diego Fernando Caballero

diegocaballero@datecsa.com

+57 2 695 7070

http://datecsa.com

Juan Fernando Montoya

juanfmontoya@a-int.co

+57 4 444 4755

www.lacitaav.com

Diego Amín Campos

ingenieria.dir@acustical.com

+57 1 317 7077

www.acustical.com

Carlos Iván Fernández

cifernandez@seel.com.co

+57 1 223 5812

www.seel.com.co

Audio, video, automation and control Audio and video automation for commercial and residential sectors

AMBIENTES INTELIGENTES

Audio, video, automation, corporate, commercial, residential

CONSTRUCCIONES ACÚSTICAS

Audio, acoustic design

SEEL

Audio, video, lighting, automation, education

AVC INTEGRADORES

Video, automation, home theater, control rooms

Christian Yaipén

christian_yaipen@hotmail.com

+51 1 225 9195

www.avcintegradores.com.pe

SEAL TELECOM

Theater, meeting rooms, cinema, buildings

Sergio A. Brieba

sergio.brieba@sealtelecom.com.co

+57 318 703 1095

www.sealtelecom.com.br

SCHALLERTECH

Audio, video, lighting, automation for residential, educational and corporate

Freddy Sampayo

freddy@schallertech.com

+57 5 301 4040

www.schallertech.com

COUNTRY

POSITION

COLOMBIA / ECUADOR

8,32%

↑

COLOMBIA / PERU

8,16%

↑

COLOMBIA

7,93%

↑

COLOMBIA

7,09%

↑

COLOMBIA

6,58%

↓

ECUADOR

5,75%

↑

PERU

4,82%

↑

COLOMBIA

4,25%

↓

COLOMBIA

4,05%

↑

COLOMBIA

3,81%

↑

COLOMBIA

3,73%

↑

PERU

3,71%

↑

COLOMBIA

3,38%

↓

COLOMBIA

3,38%

↓

TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

Andean Region No.

COMPANY

SEGMENT

REPRESENTATIVE

WEB INFO

ONE TOUCH SOLUTIONS

Audio and video for corporate and educational

Roymer Chávez

roymer.chavez@ots.com.pe

+51 1 440 1441

www.ots.com.pe

ALVAN ELECTRONICS

Audio, automation, home theater, residential, commercial, boardrooms

Luis Chirinos

sales@alvanelectronics.com

+51 1 628 1600

http://alvanelectronics.com

TELVICOM

Audio, video, automation, digital signage

Carlos Anciburo

canciburo@telvicom.com

+51 1 618 9090

www.telvicom.com

AXEDE

Unified Communications, Visual Collaboration, IP

Juan David Galeano

juan.galeano@axede.com.co

+57 1 593 5500

www.axede.com.co

COLABORACIÓN VIRTUAL

Videoconference

Carlos Archimbaud

carlos.archimbaud@ colaboracionvirtual.com

+51 1 212 1038

www.colaboracionvirtual.com

LIMA SOUND

Audio, automation, home theater, residential, commercial

Franz Sanabria

fsanabria@limasound.com

+51 1 241 1689

www.limasound.com

AV 4 DESIGN (before Ing. Electroacústica)

Audio, Home Theater

Francisco Ortiz

fortiz@ingeacustica.com

+57 1 750 5799

www.ingeacustica.com

PLANNING-EST

Audio, video conferencing, digital signage

Eduardo Psijas

ventasperu@videocorp.com

+51 1 447 6525

www.videocorp.com

ANPALA

Control centers, videowall

Guillermo Pereira

gerencia@anpala.com.co

+57 5 378 6689

www.anpala.co

IMVINET

Videowall, digital signage, corporate

Juan Carlos GarcíaLuján

garciajc@imvinet.com

+58 212 232 7259

www.imvinet.com

DIFUSIÓN

Guillermo Gutiérrez

guillermo.gutierrez@difusion.com.pe

+51 1 616 0800

www.difusion.com.pe

Corporate, hotels, education, government, digital signage

* Percentage of recognition and trajectory of Integration companies in the Andean Region.

COUNTRY

POSITION

PERU

3,02%

↑

PERU

2,78%

↓

PERU

2,78%

↓

COLOMBIA

2,65%

↓

PERU

2,42%

↑

PERU

2,39%

═

COLOMBIA

2,33%

═

PERU

1,96%

↓

COLOMBIA

1,72%

↑

VENEZUELA

1,50%

↑

PERU

1,47%

↓

Brazil No.

COMPANY

SEGMENT

REPRESENTATIVE

WEB INFO

Daniel Skit

daniel@sealtelecom.com.br

+55 11 3877 4017

www.sealtelecom.com.br

SEAL TELECOM

Audio and video for corporate, digital signage, unified communications.

ABSOLUT

Audio and video for corporate sectors, Hans-Jörg Ulmer virtual reality, cloud, control centers +55 11 2691 5113

AUDIOCOM

Audio, video and lighting for commercial, residential and corporate

Ebel Valois

ebel@audiocom.com.br

+55 81 3447 3233

www.audiocom.com.br

DIGITALNET

Audio, video, automation, video conferencing, telepresence, unified communications

Gilmar Marques

gilmar@digitalnetbr.com.br

+55 17 4141 1212

http://digitalnetbr.com.br

MUNDO VISUAL

Audio and video for corporate and educational

Gilson Tupinambá

gilson.tupinamba@mundovisual.net

+55 21 2516 0597

www.mundovisual.net

SOUND VISION

Audio, video, multimedia, sound system for stadiums, digital signage

Leandro Freire

leandro@soundvision.com.br

+55 11 5181 0730

www.soundvision.com.br

JPG

Corporate, residential, auditoriums

Joseanio Galdino

joseanio@jpghh.com.br

+55 11 3877 0088

www.jpghh.com.br

QUADDCOMM

Audio, video, automation, control centers, home theater, sound

Ricardo Ferraz

ricardo.ferraz@quadcomm. com.br

+55 11 2626 0713

www.quadcomm.com.br

TELEM

Corporate, auditoriums, conference rooms

Roseli Hipólito

roseli.hipolito@telem.com.br

+55 11 2274 9422

www.telem.com.br

HIGH RESOLUTION

Audio, video, automation, video conferencing

Mariza Figueiredo

mariza@highresolution.com.br

+55 21 3974 3034

www.highresolution.com.br

9 10

ulmer@abs-tech.com www.abs-tech.com

POSITION

13,40%

═

10,37%

═

6,60%

↑

6,50%

↑

5,78%

↑

5,19%

↑

5,09%

↑

4,87%

↑

4,66%

↑

4,56%

↑

TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

Brazil No.

COMPANY

SEGMENT

REPRESENTATIVE

WEB INFO

Antonio Aguiar

antonio.aguiar@ colaboracionvirtual.com

+55 11 3043 7806

www.colaboracionvirtual.com

Automation, sound, digital signage, unified communications

Cristian Miranda

cristian@bsscom.com.br

+55 11 3467 7272

www.bsscom.com.br

BETTONI

Audio, telepresence, acoustics, digital signage, automation

Danillo Bettoni

danillo@bettoni.com.br

+55 11 4433 6400

www.bettoni.com.br

ELETRO EQUIP / ATHIE WOHNRATH

Audio and video for corporate and auditoriums

Claudio Younis

claudio.younis@eletroequip. com.br

+55 11 4085 2100

www.eletroequip.com.br

CENARIO PROJETOS AUDIOVISUAIS

Audio, video and lighting for the commercial sector

Marcelo Gotlib

marcelo.gotlib@cenario.com.br

+55 11 2626 9913

www.cenario.com.br

SOLUTIONE

Audio and video for telepresence, videoconferencing, telemedicine, IP, automation and digital signage

Thiago Portela

tportela@solutione.com.br

+55 81 9 9780 1007

www.solutione.com.br

PERFORMANCE

Audio, video for corporate, residential, control centers

Leonardo Quadros

leonardo@performancenet. com.br

+55 41 2103 1200

www.performancenet.com.br

INFOVIEW

Video, sound, IT and IT

Roberto Braga

rbraga@iview.com.br

+55 21 3971 0001

www.iview.com.br

ENDEV

Audio, video and automation for corporate and residential

Nicolau Angelo Mariano Da Silva

nicolau@endev.com.br

+55 21 2524 5018

www.endev.com.br

ARCATTO

Paulo Boselli

arcatto@arcatto.com.br

+55 11 3205 2750

www.arcatto.com.br

COLABORAÇÃO VIRTUAL Multimedia communication

BSSCOM

Corporate, education, temples, government, residential

* Percentage of recognition and trajectory of Integration companies in Brazil.

POSITION

4,36%

↑

4,13%

↓

3,60%

↑

3,60%

↑

3,40%

↑

3,20%

↑

2,81%

↑

2,75%

↑

2,63%

↑

2,51%

↑

Southern Cone No.

COMPANY

SEGMENT

REPRESENTATIVE

WEB INFO

VIDEOCORP

Audio, video, videoconference, corporate

Pablo Psijas

ppsijas@videocorp.com

+56 2 2431 6148

www.videocorp.com

Martín Saúl

msaul@icap.com.ar

ICAP GLOBAL

Audio, video, corporate, education, video conferencing, digital signage

+54 11 4865 3755

www.icapglobal.com

SEAL TELECOM

Audio and video for corporate, digital signage, unified communications

Andres Pautasso Ignacio Ricardo Lucero

andres@sealtelecom.com.ar ignacio@sealtelecom.cl

+54 9 11 6354 6302 +56 9 8724 2594

www.sealtelecom.com.br

SPEVI

Audio, video, acoustics for commercial and corporate

Ronald Furet

rfuret@spevi.cl

+56 2 2222 5281

www.spevi.cl

Audio, video, video conferencing, corporate, education

María Martha De Nucci

mmdenucci@viditec.com.ar

VIDITEC

+54 11 4122 1200

www.viditec.com.ar

EXPEX

Audio, video, video conferencing, AV integration

Bruno Bucchianeri

bruno.b@expex.com.ar

+54 11 5031 1660

www.expex.com.ar

NEWTECH SOLUTIONS MULTIMEDIA

Audio, video, corporate, education, video conferencing

Diego Pérez

diego.perez@newtech.com.ar

+54 11 4898 5400

www.newtech.com.ar

PROYECCIONES DIGITALES

Audio, video, digital signage, corporate, videoconference

Gabriela Molina

g.molina@proyecciones.net

+54 11 5353 1110

www.proyecciones.net

DIGITAL CONTROL

Audio, video, lighting, control, corporate and residential

José Miguel Davids

jmdavids@dcontrol.cl

+56 2 2946 4367

www.digitalcontrol.cl

PROMÚSICA

Audio, automation, home automation, lighting

Roberto Fuentes

roberto@promusica.uy

+598 2480 8000

www.promusica-uy.com

1 2

COUNTRY

POSITION

CHILE

10,14%

↑

ARGENTINA

9,14%

↓

ARGENTINA / CHILE

8,28%

↑

CHILE

5,88%

↑

ARGENTINA

5,63%

↑

ARGENTINA

5,63%

↑

ARGENTINA

5,48%

↑

ARGENTINA

4,95%

↓

CHILE

4,91%

↓

URUGUAY

4,37%

↑

TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

Southern Cone No.

COMPANY

SEGMENT

REPRESENTATIVE

WEB INFO

MACOM

Audio, video, lighting, automation, home theater

Johanna Maassen

johanna.maassen@macom.com.py

+595 021 228211

www.macom.com.py

ANÁLISIS DE SISTEMAS

Audio and video commercial, corporate, education

Ariel Fabius

afabius@anasist.com.uy

+598 2711 9034

www.anasist.com.uy

VISION DIRECT

Educational, corporate and commercial audio and video

Jorge Biatturi

jorgeb@visiondirect.com.uy

+598 2408 2336

www.visiondirect.com.uy

José Manuel Abarca

jabarca@novotic.cl

NOVOTIC

Audio, video, lighting, control, commercial, corporate, educational and residential

+56 2 2211 3310

www.novotic.cl

CONVERGENCIA DS

Video, digital signage

Mariela Scicchitano

mscicchitano@convergenciads.com

+54 11 4795 3855

www.convergenciads.com

WULLICH AUDIO VIDEO

Audio, video, acoustics and residential and corporate automation

Sergio Molina

sergio@wullich.com.ar

+54 11 4815 6006

www.wullich.com.ar

INTEGRACIÓN DIGITAL

Video, digital signage

Felipe Juárez

felipe.juarez@integraciondigital.cl

+56 2 2844 8317

http://pantallastransparentes.cl

DINECOM

Corporate, education, video conferencing, automation

Jean-Paul Hernaiz

jeanpaul.hernaiz@dinecom.cl

+56 2 2799 3380

www.dinecom.cl

OPEN CHANNELS

Audio, video

Rodrigo Prieto

rprieto@openchannels.cl

+56 2 2580 1110

www.openchannels.cl

COLABORACIÓN VIRTUAL

Videoconferencing, audioconferencing and telepresence

Erika Arredondo

erika.arredondo@ colaboracionvirtual.com

+56 2 2756 0000

www.colaboracionvirtual.com

* Percentage of recognition and trajectory of Integration companies in the Southern Cone.

COUNTRY

POSITION

PARAGUAY

4,34%

↑

URUGUAY

4,19%

↑

URUGUAY

3,98%

↑

CHILE

3,83%

↑

ARGENTINA

3,73%

↓

ARGENTINA

3,60%

↓

CHILE

3,49%

↓

CHILE

2,90%

↑

CHILE

2,83%

↑

CHILE

2,71%

↓

TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

ADDENDUM TO CHAPTER 6

OUTLOOK OF THE LATIN AMERICAN ECONOMIES IN THE FACE OF CORONAVIRUS

In light of the COVID-19 pandemic, financial organizations such as the International Monetary Fund (IMF) and the UN’s Economic Commission for Latin America and the Caribbean (ECLAC), recognized that the world is in the midst of a recession, which would be even worse than 2009, according to Kristalina Georgieva, managing director of the IMF, who foresees a -9.4% contraction in world growth by 2020, recognizing that the pandemic has had “a more negative impact than expected” at beginning of this year. The crisis impacted Latin America at a time of weakness in its economy and of macroeconomic vulnerability, after accumulating almost seven years of low growth, with an average of 0.4% between 2014 and 2019. Thus, ECLAC estimates that the Latin American GDP will have the worst fall in history, with -9.1%. In comparison, the contractions recorded during the Great Depression of 1930 (-5%) or even further back, in 1914 (-4.9%) clearly fall short of the magnitude of

-9.1 %

the current crisis. However, the IMF mentioned in June that there are “somewhat encouraging news”, as economic activity, after the slump earlier this year, “has gradually started to strengthen. Partial recovery is expected to continue in 2021”. This statement comes with the announcement made in April by this same agency, that they provided up to USD 50 billion in emergency funding as an initial response for emerging and developing countries, with the lowest-income countries receiving approximately USD 10 billion to face the pandemic. Despite these efforts, it’s clear that this crisis will leave deep economic scars, with the greatest concern regarding the labor market, since in some countries more jobs were lost in March and April alone than those created since the financial crisis of 2009.

THE WORLD TRADE ORGANIZATION ESTIMATES THAT WORLD TRADE WILL FALL BETWEEN -13% AND -32% IN 2020. IN LATIN AMERICA, THE

WILL DECREASE LATIN AMERICAN

VALUE OF IMPORTS OF GOODS

GDP IN 2020, ACCORDING TO

FROM THE REGION FELL -17.1%

ECLAC.

BETWEEN JANUARY AND MAY 2020.

TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

Before the emergence of COVID-19, the IMF had estimated that Latin America would grow 1.6% in 2020. Alicia Bárcena, executive secretary of ECLAC, specified that the coronavirus will affect the region through five channels: the first is the decrease in Latin American exports due to the stagnation of economic activity; the second comes from the fall in the demand for tourism services, which would impact the Caribbean countries more severely; the third would be the interruption of value chains, mainly affecting Mexico and Brazil, who import parts and intermediate goods from China for the manufacturing of many products, including household appliances and electronics; and finally the fourth and fifth channel would be the affectations to the prices of basic products and the risk aversion of investors, affecting the stock market indexes. For their part, the IMF indicated in their June 2020 “World Economic Outlook Update”, that “the impact on low-income households is particularly sharp, and would jeopardize the significant progress in the fight against extreme poverty achieved worldwide since the 1990s”.

The agency also estimates that, while most Latin American countries are still struggling to contain infections, the two largest economies, Brazil and Mexico, will suffer contractions of -9.1% and -10.5%, respectively. In a special report on digital technologies against COVID-19 published in August, ECLAC highlighted that teleworking and online education have been the first key solutions for the control of the expansion of the coronavirus, and “the development and adoption of digital technologies in production will be essential” for economic reactivation in all countries. Thus, the areas with the greatest demand for digital solutions in the immediate future and during the postpandemic will also be remote health consultations and diagnoses, online shopping, banking and insurance services, and online entertainment. This will be an important opportunity for professional AV integrators and manufacturers, since the use of digital communication technologies in most Latin American companies is still in low levels, so there will be an higher interest in strengthening digital ecosystems, both in the private as the public sectors.

WORLD GROWTH OUTLOOK UP TO 2025, IN THE BEST- AND WORST-CASE SCENARIOS, AS OF MARCH 2020 Percentage 5.0 4.0 3.0 2.0 1.0 0.0 -1.0

Source: United Nations Department of Economic and Social Affairs.

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

Worst-case Best-case 2005

-2.0

ACTIVITY CHANGES OF 5* LATIN AMERICAN COUNTRIES IN THE FIRST HALF OF 2020, ACCORDING TO WEB TRAFFIC AND APP USAGE (IN PERCENTAGES)

Telecommuting (world)

324

E-Commerce and deliveries

157

Online education

Video and audio Streaming

12 7

E-banking Retail E-Commerce

Hotels and lodging (world) Travel and tourism

-150

-7 -83 -100

-50

100

150

200

250

300

350

*Argentina, Brazil, Chile, Colombia and Mexico. Source: ECLAC, based on SimilarWeb.com data by August 3, 2020.

TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

EXPORT GROWTH AND TRADE BALANCE IN MEXICO AND CENTRAL AMERICA 2019 % EXPORT GROWTH 2019

2.4% -0.7%

3.2% 0%

3.5%

-4.5%

Nicaragua 4.5%

Source: ECLAC

TRADE BALANCE 2019* Mexico -7,790

Costa Rica Guatemala Honduras 1,845 -8,234 -4,388

In thousands of US Dollars. *ECLAC estimation

Nicaragua -964

Panama -3,256

Dominican Republic -3,400

Mexico, Central America & The Caribbean Mexico The collapse of the Mexican economy in 2020 will be -10.2%, according to the results of the survey applied in August by the Bank of Mexico among 36 specialists from the private and foreign sector, coinciding with the projections of ECLAC, of a -9% decrease. The considerable tourism reduction in Mexico, an industry that represents approximately 16% of the country’s GDP, is another vulnerability factor. ECLAC estimates that inflation for 2019 was around

MEXICO GDP, INFLATION AND UNEMPLOYMENT, 2017-2019 4

3%, while the National Institute of Statistics and Geography (INEGI, in Spanish) reported in June 2020 that unemployment reached 4.7%, for a total of 2.1 million unemployed Mexicans. Regarding commercial dynamics, total exports increased 3.3% in 2019, while imports of professional AV industry equipment by July 2020 reached USD 1,787 million FOB (Free on Board), originating mainly from China (45.8%), Mexico (21.6%) and the United States (8.7%), according to data from the National Institute of Statistics and Geography (INEGI).

IMPORTS OF PROFESSIONAL AV EQUIPMENT

7 6

5 2

4 3

2 0 -1

1 T1

2017

2018

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

45.8% CHINA

5.9% TAIWAN

21.6% MEXICO

2.6% VIETNAM

8.7% USA

15.4% OTHERS

BY JULY 2020

Source: Descartes Datamyne - INEGI. TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

Costa Rica Costa Rica’s economic activity registered a significant slowdown in 2019, with a growth rate estimated by ECLAC of 1.8% (compared to 2.6% in 2018), negatively affected by a set of external and internal factors. By 2020, the Costa Rican economy would have a contraction of -5.5% of GDP as a result of the pandemic, according to this agency’s projections published in July this year. The FTA with South Korea entered into force on

November 1, 2019 and is expected to facilitate mainly agricultural exports, investment and cooperation. The Costa Rican economy continues its growth line with a surplus of USD 1,845 million in 2019. Specifically, imports of professional AV equipment between January and October 2019 reached USD 154,173,000 CIF (Cost, Insurance and Freight), according to information from the National Customs Service, the main origins being China (47.8%), Mexico (21.4%) and the United States (17.2%).

COSTA RICA GDP, INFLATION AND IMPORTS OF PROFESSIONAL UNEMPLOYMENT, 2017-2019 AV EQUIPMENT 5 4 3 2 1 0

13 12 11 10 9 8 7 6 5 4 3 2 1 0 -1 -2 47.8% CHINA

6.3% HONG KONG

GDP, VARIATION RATE OVER 4 QUARTERS.

21.4% MEXICO

2.2% PANAMA

INFLATION, VARIATION RATE OVER 12 MONTHS.

17.2% USA

5.1% OTHERS

2017

2018

2019

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY OCTOBER 2019

Source: Descartes Datamyne - National Customs Service. TOP 50 EMPRESAS DE LIMPIEZA LATINOAMERICANAS • INFORME 2020-2021

Dominican Republic Although the IMF had mentioned at the beginning of 2020 that the Dominican Republic would be among the least affected countries by the pandemic, and would decrease only -1%, this projection was revised by ECLAC in July and the estimate now is a -5.3% fall of their GDP. The Dominican Central Bank is even less optimistic, pointing out that GDP fell -8.5% in the first half of 2020 alone.

As in most Latin American countries, the pandemic caused a sharp slowdown in the economy due to the halt of productive activities, the closure of borders, among other measures. However, with the economic reactivation plan that begun in May, commerce, construction, local manufacturing and free trade zones were the first to restart operations with a significant recovery, according to the Central Bank. Total imports in 2019 reached USD 642 million compared to the previous year, according to ECLAC.

DOMINICAN BOLIVIA PIB EREPUBLIC INFLACIÓN, GDP 2016-2018 AND INFLATION, 2017-2019 6 8

7 5 6

4 5

3 4

3 2 2

1 1

2016 2017

2017 2018

2018 2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

El Salvador ECLAC estimates that in 2019, the Salvadoran economy will have grown by 2.2% due to a moderate increase in remittances, exports and investment from the public sector. However, the agency calculated one of the strongest falls in the entire Central American subregion, with a -8.6% decrease in GDP in 2020, caused by the coronavirus pandemic. In August, it was revealed that El Salvador requested over USD 900 million in loans from international organizations such as the IMF, the Inter-American Development Bank and the World Bank to face the crisis, worsening the public debt index of the already impoverished Central American country. Ricardo Castañeda, coordinator for El Salvador of the Central American Institute for Fiscal Studies (ICEFI, in Spanish) told the press agency EFE that “El Salvador may have the worst impact on its economic growth in Central America due to the pandemic, with a loss of at least 10% of their GDP”.

EL SALVADOR GDP AND INFLATION, 2017-2019

Regarding international trade, imports totaled USD 9,014 million in the first three quarters of 2019, representing an increase of 2.2%. The increase in the purchase of consumer goods (7.1%) and non-durable goods (7.3%) stands out. Specifically, imports of products for the Cleaning sector in 2019, according to data from the Central Reserve Bank, reached USD 2,031,000, coming from the United States (26.2%), China (17.3%) and Brazil (12.8%). Regarding international trade, imports exceeded USD 9 billion in the first three quarters of 2019, representing a rise of 2.2%. The increase in the purchase of consumer goods (7.1%) and non-durable goods (7.3%) stands out. Specifically, imports of products for the professional AV sector in 2019, according to data from the Central Reserve Bank, reached USD 12,602,600, coming from Mexico (31.6%), the United States (24.2%) and China (20.3%).

IMPORTS OF PROFESSIONAL AV EQUIPMENT

2 1

0 2 -3 1 0

-2

2017

2018

-1

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

31.6% MEXICO

9.0% PANAMA

24.2% USA

1.8% HONG KONG

20.3% CHINA

13.2% OTHERS

BY 2019

Source: International Trade Center (ITC) - Central Reserve Bank.

Guatemala ECLAC estimates that Guatemala’s GDP in 2019 will have grown by 3.3%, a figure higher than that observed in 2018 (3.1%), and although the country’s growth estimates were very optimistic, due to the pandemic of the coronavirus, the agency estimates a drop of -4.1% in GDP, although the IMF calculated a 5.5% growth for 2021. It should be noted that former President Jimmy Morales indicated to the Guatemalan Congress in January 2020, hours before the inauguration of the new president, Alejandro Giammattei, that the indicators of the risk rating agencies “emphasize that Guatemala has macroeconomic and fiscal strength

GUATEMALA GDP AND INFLATION, 2017-2019

associated with the GDP growth levels”. The main growth drivers have been private consumption and, to a lesser extent, investment, where the public component stands out due to greater spending of capital. In this sense, total imports had a small growth in 2019 compared to 2018. The imports of equipment for the professional AV industry reached USD 23,288,800, according to information from the Central Bank of Guatemala and the International Trade Center (ITC), the main origins being the United States (40.5%), Mexico (24.3%) and China (22.9%).

IMPORTS OF PROFESSIONAL AV EQUIPMENT

6 6 5

2017

2018

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

40.5% USA

8.6% PANAMA

24.3% MEXICO

0.8% HONG KONG

22.9% CHINA

2.9% OTHERS

BY 2019

Source: International Trade Center (ITC) - Central Bank of Guatemala TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

Honduras The Honduran economy, which in 2019 was affected by the global economic slowdown, the fall in the coffee prices, the country’s main export product, and other internal factors, including political and social, would be affected even more seriously as a result of of the COVID-19 pandemic, with a contraction of -6.1% in its GDP in 2020, according to ECLAC. However, the president of the Central Bank of Honduras (BCH, in Spanish), Wilfredo Cerrato, pointed out in early August that the country would have a contraction ranging between -7 and -8 percent, “after several revisions within the Central Bank, which we have discussed with other external players, academics and the IMF mission”.

HONDURAS GDP AND INFLATION, 2017-2019 6

2017

2018

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Regarding commercial dynamics, total exports decreased in 2019 by 0.7% compared to 2018. It should be noted that imports of equipment for professional AV by March 2020 reached USD 20,592,300 CIF, with origins from China (48.4%), Mexico (39.5%) and the United States (6%), according to data from the General Directorate of Control of Customs Franchises.

IMPORTS OF PROFESSIONAL AV EQUIPMENT

In turn, ECLAC estimates that Honduras’ economic growth in 2019 will have been 2.9%, a figure lower than the 3.7% reached in 2018, indicating a weakening that was exacerbated by the impact of the pandemic.

48.4% CHINA

0.8% ITALY

39.5% MEXICO

0.8% PHILIPPINES

6.0% USA

4.5% OTHERS

BY MARCH 2020

Source: Descartes Datamyne - General Directorate of Control of Customs Franchises. TOP IOO CONTRATISTAS-INSTALADORES • INFORME 2020-2021 • ADDENDUM

Panama Although the World Bank highlighted in 2019 that “Panama has been one of the fastest growing economies in the world”, with an average of 5% over the past five years, the pandemic collapsed the positive outlook and ECLAC predicted a decrease of -6.5% for 2020. This result represents a ten year setback of the Panamanian economy and the negative external impacts on the region are through trade, tourism and remittances, added to unemployment of around

PANAMA GDP AND INFLATION, 2017-2019

13.5% at the end of 2020, which means 44,1 million unemployed people. Specifically, imports of products for the professional AV industry by June 2020 were close to USD 35,736,300 FOB, merchandise that entered the country mainly from the United States (28.6%), China (21.6%), and Mexico (12.8%), while 26.7% entered the country from the Colon Free Trade Zone, according to data from the National Customs Authority.

IMPORTS OF PROFESSIONAL AV EQUIPMENT 3

7 6

5 4

3 2

1 0

2017

2018

-1

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

28.6% USA

12.8% MEXICO

26.7% COLON FTZ

3.0% COLOMBIA

21.6% CHINA

7.3% OTHERS

BY JUNE 2020

Source: Descartes Datamyne - National Customs Authority. TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

EXPORTS AND TRADE BALANCE IN THE ANDEAN REGION AND THE SOUTHERN CONE 2019 % EXPORT GROWTH 2019

-33.3%

-3.3%

TRADE BALANCE 2019*

Venezuela

Bolivia -2,461

2.1%

Colombia -12,983

Brazil -4.8%

Ecuador -2,586

-7%

Brazil 3,128

-2.7%

-0.8%

-6.6%

Peru 2,493

4.1%

Argentina 10,057 Chile -1,767 Paraguay 272 Uruguay 3,870 In thousands of US Dollars *ECLAC estimation

Source: ECLAC

Andean Region Colombia Despite the fact that in 2019, the Colombian economic activity strengthened, consolidating a growth rate of 3.2% according to ECLAC, the agency’s projections for 2020 reveal a decrease of -5.6%, although the IMF expects a rebound to 3.7% by 2021. Colombia is included among the “most indebted” countries, reaching 49.1% of GDP, a historical maximum, which according to the Ministry of Finance, would even reach 65.7% of GDP, in order to meet the needs of the coronavirus emergency.

of Statistics (DANE, in Spanish) pointed out that although unemployment reached 19.8% in June 2020, there has been a slight recovery compared to the figures reported in May, of 21.4%. Even so, it’s important to consider that, while in June 2019 there were 2.3 million unemployed, a year later the figure stood at 4.5 million (a 92.3% increase).

However, the National Administrative Department

As for imports of professional AV equipment, by July 2020 they reached USD 383,916,400 FOB, originating from Mexico (52.3%), China (39.2%) and the United States (1.3%), according to the records of the National Tax and Customs Directorate (DIAN).

COLOMBIA GDP, INFLATION AND UNEMPLOYMENT, 2017-2019

IMPORTS OF PROFESSIONAL AV EQUIPMENT

12 10

8 2

6 4

1 2 0

2017

2018

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

52.3% MEXICO

1.1% VIETNAM

39.2% CHINA

0.6% TAIWAN

1.3% USA

5.5% OTHERS

BY JULY 2020

Source: Descartes Datamyne - DIAN TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

Ecuador For 2020, the IMF estimates a sharp contraction of GDP of -10.9%, due to how some Ecuadorian cities have been affected by the COVID-19 pandemic, added to the consequences of the crisis due to civil protests by the end of 2019. ECLAC, in turn, estimates a drop of -9.0% for 2020.

Another impact is the 4.1% increase in unemployment due to the pandemic in Q2, according to reports from the Central Bank, which estimate a loss of 335,413 jobs, especially affecting the commercial sector, with 105,500 lost jobs, which represents a 31% of labor force.

The Ecuadorian government’s agreement with the IMF, together with the possible legal reforms, brought with them the social uprising of October 2019 that left losses of USD 2,800 million, according to the unions, although the Central Bank of Ecuador indicated that the losses would be around USD 821 million.

International trade was significantly affected in 2019: exports and imports grew by 3% and 0.7%, respectively, compared to 15.8% and 18% in 2018. On the other hand, those of professional AV equipment by June 2020 were close to USD 102,864,700 FOB. The main origins were China (43.1%), the United States (18.6%) and Panama (9.2%).

ECUADOR GDP, INFLATION AND UNEMPLOYMENT, 2017-2019

IMPORTS OF PROFESSIONAL AV EQUIPMENT

7 6

5 4

3 2

-1

1 0

-3

-1 -5

2017

2018

-2

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

43.1% CHINA

5.5% NOT INDICATED

18.6% USA

4.6% BRAZIL

9.2% PANAMA

19.0% OTHERS

BY JUNE 2020

Source: Descartes Datamyne – National Custom Service

Peru The Peruvian economy will suffer the greatest decline of the Andean region in 2020, with the exception of Venezuela, with a -13% decrease, due to the COVID-19 pandemic, despite having a stable growth in recent years. The reason for this severe drop is “the abrupt economic slowdown in the United States and China, which has altered the supply chains of Mexico and Brazil, leading to a sharp drop in exports from commodityproducing economies such as Chile and Peru”, the World Bank emphasized in a statement to the media. Thus, Peru would be one of the South American cou-

PERU GDP, INFLATION AND UNEMPLOYMENT, 2017-2019 6

ntries that would come “worse off” after the pandemic, suffering from a strong increase in poverty (9.3%), along with Argentina, Ecuador and Mexico. On the other hand, imports and exports had already been falling since 2019, in line with the slowdown in activity that occurred during that year. This can also be observed in the imports of professional AV equipment, which by July 2020 were close to USD 331,186,500 FOB, originating mainly from China (52.4%), Mexico (34.6%) and the United States (2.1%), according to data from the National Superintendency of Customs and Tax Administration (SUNAT).

IMPORTS OF PROFESSIONAL AV EQUIPMENT 10 8

4 6 4 2 2 0

2017

2018

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

52.4% CHINA

1.3% BRAZIL

34.6% MEXICO

1.2% ITALY

2.1% USA

8.3% OTHERS

BY JULY 2020

Source: Descartes Datamyne – SUNAT TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

Venezuela The well-known Venezuelan political and economic situation has been even more affected by the coronavirus pandemic, causing the wages purchasing power to be “pulverized”, according to Jesús Casique, economist and director of the firm Capital Market Finance, in interview with the Venezuelan news website Voz de América. In 2019 alone, GDP fell again by -25.5%, an accumulated contraction of -62.2% compared to 2013, according to ECLAC, who also foresees a new contraction of -26% for 2020 as a result of the pandemic. As of September 2019, the annualized inflation rate was 39,113%; according to the National Assembly, this exceeded 4,000% in the last year, with an increa-

VENEZUELA GDP AND INFLATION, 2017-2019 -3

se of 55.05% only in July 2020. For its part, the IMF estimates inflation in at least 15,000%, the highest in the world. This is in addition to the depreciation of the bolivar against the US dollar in the first days of 2020, by more than 23% in the parallel market, as revealed by the EFE agency, thus reaching a depreciation of over 4,900%. Imports experienced an annualized reduction of -13% in the first quarter of 2019, with falls in both private and public imports, affecting all industries, including that of professional AV, and in all of 2019 only USD 9,609,555 FOB was reached, originating from China (59.9%), the United States (17.7%) and Panama (7.8%).

IMPORTS OF PROFESSIONAL AV EQUIPMENT 300000

-8 200000

-13 -18

100000

-23 -28

2017

2018

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

59.9% CHINA

4.5% BRAZIL

17.7% USA

2.8% COLOMBIA

7.8% PANAMA

7.3% OTHERS

BY DECEMBER 2019

Source: Descartes Datamyne with information from partner countries

Brazil & Southern Cone Brazil

Although the Brazilian economy was on their way to recovery after the 2014-2017 recession, and presented a 1% growth in its GDP in 2019, the pandemic led to a revision on ECLAC’s projections in July, which anticipate a -9.2% drop in Brazil’s GDP for 2020. On the other hand, according to the Economic Activity Index, a report published by the Brazilian Institute of Geography and Statistics (IBGE), the economy fell 10.98% in the second quarter of 2020, compared to the first quarter of the year. The same institute warned that 7.8 million people lost their jobs during the pandemic and that “for the first time in the historical surveys, the employment level was under 50%”.

BRAZIL GDP, INFLATION AND UNEMPLOYMENT, 2017-2019 4 3 2 1 0 -1 -2 -3 -4 -5

2017

2018

However, the government offers more optimistic projections, because at the beginning of September, the Minister of Economy, Paulo Guedes, told the EFE Agency that the retraction would be “less than what was initially feared thanks to the fast reactivation of the activities that were paralyzed” because of the pandemic, and noted a contraction of between -4 and -5 percent. Between January and November 2019, exports decreased by 6.4%, while imports decreased by 2.1%. Added to this, the COVID-19 pandemic significantly affected imports of equipment for professional AV, since until July 2020 they only reached USD 316,679,201 FOB, originating mainly from China (69.9%), United States (5.1%) and Mexico (4.6%).

IMPORTS OF PROFESSIONAL AV EQUIPMENT 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

2019

69.9% CHINA

GDP, VARIATION RATE OVER 4 QUARTERS.

5.1% USA

INFLATION, VARIATION RATE OVER 12 MONTHS.

4.6% MEXICO

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

2.7% VIETNAM 2.6% HONG KONG 15.1% OTHERS

BY JULY 2020

Source: Descartes Datamyne

TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

Argentina In 2019, the contraction of the Argentine economy worsened, with a fall of -3% in GDP, and the emergence of the coronavirus would further deepen the recession in the southern country, as ECLAC estimates a decrease of -10.5% for 2020.

However, the drastic measures taken by the Government at the beginning of this year to control the spread of the coronavirus, allowed the country to have the lowest number of deaths from COVID-19 in the entire region.

Added to this, inflation increased to 49.7% year-onyear (as of October 2019) compared to the 34.7% average in 2018, added to the depreciation of the Argentine peso, which lost over 20% of its value in 2019, with prices exceeding 60 pesos per dollar.

Exports in 2019 had a growth of 4.1% compared to 2018, however imports were lower than those made in 2018. In turn, imports of equipment for professional AV by July 2020 reached USD 406,348,300 million FOB, coming from China (39.3%), Thailand (1.6%) and Vietnam (1.5%), while 49.7% of imports entered the country from the Tierra del Fuego FTZ, according to data from the General Directorate of Customs.

The above is worsened, considering that, in order to meet the extraordinary expenses due to the pandemic, the Central Bank issued 1.3 trillion pesos (USD 18,220 million) during the first five months of 2020.

ARGENTINA GDP, INFLATION AND IMPORTS OF PROFESSIONAL UNEMPLOYMENT, 2017-2019 AV EQUIPMENT 6

0 28

-2

-4

-6 -8

2017

2018

-2

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

49.7% TIERRA DE FUEGO *

1.5% VIETNAM

39.3% CHINA

1.5% ISRAEL

1.6% THAILAND

6.4% OTHERS

* SPECIAL CUSTOMS AREA BY JULY 2020

Source: Descartes Datamyne â&#x20AC;&#x201C; General Directorate of Customs

Chile In 2019, the growth rate of the Chilean economy fell from 4% in 2018 to 0.8%, due to the lower dynamism of internal and external demand. Although a rebound in activity was expected from the second half of the year, the social turmoil that began in October and continued in 2020 deepened the slowdown in consumption and investment.

In an interview for the Chilean newspaper La Tercera, the BCI Bank chief economist, Sergio Lehmann, indicated that the IMF’s vision “is among the most pessimistic, biased on the most negative side that the Central Bank (of Chile) delivers. Our view is somewhat more moderate, with a contraction of 6% as the base scenario, although we acknowledge high uncertainty”.

The appearance of the coronavirus continued to worsen forecasts and finally ECLAC projects a decrease in Chilean GDP by -7.9% for 2020.

Imports of equipment for the professional AV industry by June 2020 almost reached USD 296,235,800 million CIF, originating mainly from South Korea (27.5%), China (22.8%) and Hong Kong (18.5%), according to data from the National Customs Service.

Despite the pessimism, the IMF estimates a GDP recovery of 5% for next year.

IMPORTS OF PROFESSIONAL AV EQUIPMENT

CHILE GDP, INFLATION AND UNEMPLOYMENT, 2017-2019 7

-1

2017

2018

2019

27.5% SOUTH KOREA

GDP, VARIATION RATE OVER 4 QUARTERS.

22.8% CHINA

INFLATION, VARIATION RATE OVER 12 MONTHS.

18.5% HONG KONG

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

12.5% USA 2.2% MEXICO 16.6% OTHERS

BY JUNE 2020

Source: Descartes Datamyne – National Customs Service TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

Paraguay In 2019, the Paraguayan economy was adversely affected both by climatic factors and by the unfavorable situation of their primary trading partners, such as Chile and Argentina. Growth estimates for 2019 were adjusted downward, standing at around 0.2%, according to ECLAC. However, this agency highlighted in June that Paraguay would be the South American country least affected by the pandemic crisis, with a -2.9% decrease of their GDP. This is in addition to the control that the country achieved in the number of infections, completing nearly two months without deaths, prompting the authorities to initiate a “smart confinement” phase,

PARAGUAY GDP, INFLATION AND UNEMPLOYMENT, 2017-2019 10

with the reopening of restaurants and gyms, and flexibilization of circulation measures. However, according to a report by the Central Bank of Paraguay (BCP) published in June, a significant drop in private consumption is estimated, mainly due to the high level of uncertainty due to the pandemic, therefore, the results achieved in virus containment will be key to consolidate the growth data for 2020. Regarding imports of equipment for professional AV, in 2019 they reached USD 29,156,800, originating mainly from China (51.9%), the United States (23.8%) and Mexico (5.8%), according to data from the Central Bank of Paraguay.

IMPORTS OF PROFESSIONAL AV EQUIPMENT

9 8

7 6

5 4

3 2

1 0

2017

2018

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

51.9% CHINA

4.5% HONG KONG

23.8% USA

3.9% PANAMA

5.8% MEXICO

10.2% OTHERS

BY 2019

Source: International Trade Center (ITC) - Central Bank of Paraguay

Uruguay ECLAC forecast a decrease in Uruguayan GDP of -5.0% for 2020, due to the coronavirus pandemic, added to the pessimistic expectations caused by the decreased activity in China, one of the largest export markets of the Uruguay, where about 20% of exports are destined.

the decline in the level of activity would have been reached in April” and “the economy began to show signs of gradual reactivation starting in May”.

According to the Monetary Policy Report of the Central Bank of Uruguay (BCU, in Spanish) in relation to the “available economic indicators, the floor for

Regarding commercial dynamics, the newspaper El País de Uruguay pointed out that “exports of goods showed signs of recovery in June, although they are still lower than those of the same month in 2019. In the same month, the reduction in international sales was of 6.8% compared to the same month of last year, which shows a moderation in the fall”. In turn, imports of professional AV equipment by August 2020 almost reached USD 62,777,900 CIF, originating from China (60.9%), followed by Mexico (12.4%) and the United States (5.8%), according to data from the General Directorate of Customs.

URUGUAY GDP, INFLATION AND UNEMPLOYMENT, 2017-2019

IMPORTS OF PROFESSIONAL AV EQUIPMENT

Despite this outlook, effective control on the COVID-19 contagion curve allowed the reopening of shopping centers in June and the gradual return of students to schools, thus facilitating economic recovery.

-1

2017

2018

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

60.9% CHINA

3.6% POLAND

12.4% MEXICO

3.3% BRAZIL

5.8% USA

14.0% OTHERS

BY AUGUST 2020

Source: Descartes Datamyne - General Directorate of Customs TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

AVERAGE GDP IN LATIN AMERICA ESTIMATION 2019 PROJECTION 2020

2.9

2.1

1.9

0.7

0.1

-4.9 -6.1

-6.7 -8.2

-9.1 WORLD

LATIN AMERICA

MEXICO, CENTRAL AMERICA

ANDEAN REGION

BRAZIL AND SOUTHERN CONE

Nota: The averages for Latin America, Andean Region and Southern Cone donâ&#x20AC;&#x2122;t include Venezuela and Argentina because of their exceptional circumstances. If these countries are considered, the average variation of GDP in the Andean Region would be -5.3% in 2019 and a -11.8% projected in 2020; while in the Southern Cone it would be 0.1% for 2019 and -7% projected for 2020. Source: ECLAC and IMF

PERCENTAGE VARIATION OF THE CONSUMER PRICE INDEX (CPI) IN 12 MONTHS, BETWEEN SEPTEMBER 2017 TO OCTOBER 2019 9 8 7 6 5 4

2017

2018

SEP

JUL

MAY

MAR

JAN

NOV

JUL

Mexico and Central America SEP

0 MAY

The Caribbean

JAN

MAR

South America, except Argentina and Venezuela

NOV

SEP

Latin America, except Argentina and Venezuela

2019

Source: ECLAC

TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

ANNUAL GDP GROWTH %

2018 2019* 2020**

MEXICO AND CENTRAL AMERICA

2.9

WORLD

-4.9

-9.1

-9

LATIN AMERICA

0.1

MEXICO

0.1

1.1

2.1

COSTA RICA

-5.5

3.1 3.6

GUATEMALA

-4.1

2.7

HONDURAS

- 6.1 -4 -3.9

-8.3

2.7

2.5 2.3

EL SALVADOR

-8.6

3.6

3.7

NICARAGUA

-6.5

5.1

PANAMÁ 3.7 -5.3

-10

-8

-6

DOMINICAN REP. -4

-2

*Estimated **Projection Source: ECLAC and IMF

TOP 50 EMPRESAS DE LIMPIEZA LATINOAMERICANAS • INFORME 2020-2021

ANDEAN REGION 3.6 2.9

WORLD -4.9 1.1 0.1

LATIN AMERICA -9.1

4.2 2.8

BOLIVIA -5.2

2.5 3.3

COLOMBIA -5.6

1.3 -9

0.1

ECUADOR

4 2.2

PERU

-13 -19.6

VENEZUELA

-35 -26 -40

-30

-20

-10

BRAZIL Y SOUTHERN CONE WORLD

3.6 2.9

-4.9 1.1 0.1

LATIN AMERICA

-9.1

1.3 BRAZIL

1.1

-9.2 -2.5 -2.2 ARGENTINA -10.5 3.9 CHILE

-7.9

-5 -15

-10

-5

1.1

PARAGUAY -2.3

0.2

URUGUAY

0.2

4.2

1.6

TOP IOO CONTRATISTAS-INSTALADORES TOP IOO INTEGRATORS• •INFORME REPORT 2020-2021 2019-2020 • ADDENDUM

Index of references Cited sources: Gestión Digital, “¿Qué le espera a la economía ecuatoriana en el 2020?”, Press publication, January 19, 2020. El Colombiano, “Por coronavirus, las bolsas del mundo viven la peor caída desde la crisis financiera del 2008”, Press publication, February 28, 2020. Infobae, “Según la OCDE el coronavirus hará más profunda a la recesión de la Argentina”, Press publication, March 2, 2020. Revista Semana, “La Cepal ve una recesión global solo comparable con la depresión de 1929”, Press publication, March 25, 2020. Revista Semana, “Economía mundial entró en recesión, advierte el FMI”, Press publication, March 27, 2020. France 24, “FMI: ‘Ya está claro que estamos en una recesión igual o peor que la de 2009’”, Press publication, March 28, 2020. Infobae, “El desempleo en México alcanzó el 4.7% en abril: 2.1 millones de personas no tienen trabajo”, Press publication, June 1, 2020. Diario Gestión, “Perú será el país con mayor caída de PBI en Sudamérica este año, según BM”, Press publication, June 8, 2020. CNN en Español, “Casi 8 millones de brasileños pierden su empleo debido al covid-19”, Press publication, July 1st, 2020. France24, “¿Cómo hará una Argentina que ya estaba en crisis para pagar los gastos de la pandemia?”, Press publication, July 17, 2020. La Tercera, “FMI baja proyección de PIB de Chile a -7,5% en 2020, pero sería el que menos caerá en la región”, Press publication, July 26, 2020. El Espectador, “Leve mejora: tasa de desempleo en Colombia se ubicó en 19,8 % en junio de 2020”, Press publication, July 30, 2020. Forbes Centroamérica, “Economía de Honduras se contraerá entre 7 y 8 % de su PIB por Covid-19”, Press publication, August 1, 2020. El País Uruguay, “Los 11 indicadores que muestran el inicio de la recuperación de la economía uruguaya”, Press publication, August 2, 2020. El Economista, “Especialistas prevén caída de 10.02% en el PIB de México para el 2020”, Press publication, August 3, 2020. El Universo, “$5249 millones y 335 413 empleos perdidos es impacto del COVID-19 en economía de Ecuador, reporta Banco Central”, Press publication, August 7, 2020.

Revista Dinero, “Deuda externa de Colombia se acerca al 50% del PIB”, Press publication, August 11, 2020. Infobae, “El Salvador solicita más de 900 millones en préstamos para la pandemia de la COVID-19”, Press publication, August 12, 2020. Deutsche Welle, “Bolivia en crisis: la única solución es ir a elecciones cuanto antes”, Press publication, August 12, 2020. CNN en Español, “La economía de Brasil cayó casi un 11% en el segundo trimestre de 2020”, Press publication, August 14, 2020. VOA Noticias, “Analistas: el salario en Venezuela está ‘pulverizado’ por inflación y COVID-19”, Press publication, August 18, 2020. El Dinero, “La economía dominicana se desploma un -8.5% en primer semestre de 2020”, Press publication, August 30, 2020. Agencia EFE, “Ministro dice que la retracción de la economía brasileña será menor que la temida”, September 9, 2020. Economic Commission for Latin America and the Caribbean (ECLAC), Preliminary Overview of the Economies of Latin America and the Caribbean, 2019 (LC/PUB.2019/25-P), Santiago, 2019. Economic Commission for Latin America and the Caribbean (ECLAC), Report on the economic impact of coronavirus disease (COVID-19) on Latin America and the Caribbean: study prepared by the Economic Commission for Latin America and the Caribbean (ECLAC), at the request of the Government of Mexico in its capacity as Pro Tempore Chair of the Community of Latin American and Caribbean States (CELAC), at the virtual ministerial meeting on health matters for response and follow-up to the COVID-19 pandemic in Latin America and the Caribbean, held on 26 March 2020, held on 26 March 2020 (LC/TS.2020/45), Santiago, 2020. Organization for Economic Cooperation and Development (OECD), “Coronavirus: la economía mundial en riesgo”, Economic Outlook, Interim Report, March 2020. Central Bank of Paraguay, “Recuadro I: Efectos de la pandemia y medidas de reactivación económica”, Monetary Policy Report, June 2020. International Monetary Fund (IMF), “Una crisis como ninguna otra, una recuperación incierta” World Economic Outlook (WEO) Update, June 2020. Economic Commission for Latin America and the Caribbean (ECLAC), “Enfrentar los efectos cada vez mayores del COVID-19 para una reactivación con igualdad: nuevas proyecciones”, COVID-19 Special Report No. 5, July 15, 2020. Economic Commission for Latin America and the Caribbean (ECLAC), “Los efectos del COVID-19 en el comercio internacional y la logística”, COVID-19 Special Report No. 6, August 6, 2020.

TOP IOO INTEGRATORS • REPORT 2019-2020 • ADDENDUM

World Bank, “La respuesta del Grupo Banco Mundial a la COVID-19 aumenta a USD 14 000 millones para ayudar a sostener las economías y proteger el empleo”, Press release, March 17, 2020. Economic Commission for Latin America and the Caribbean (ECLAC) “COVID-19 Will Have Grave Effects on the Global Economy and Will Impact the Countries of Latin America and the Caribbean”, Press release, March 19, 2020. International Monetary Fund (IMF), “Remarks by IMF Managing Director Kristalina Georgieva During an Extraordinary G20 Leaders’ Summit”, Press release, March 26, 2020. World Trade Organization (WTO), “Trade set to plunge as COVID-19 pandemic upends global economy”, Press release, April 8, 2020. International Monetary Fund (IMF), “Confronting the Crisis: Priorities for the Global Economy”, Address by Kristalina Georgieva, IMF Managing Director, April 9, 2020. International Monetary Fund (IMF), “Coronavirus Economic Planning: Hoping for the Best, Prepared for the Worst”, IMFBlog post, March 12, 2020. International Monetary Fund (IMF), “La pandemia del coronavirus y América Latina: Es el momento de tomar medidas decisivas”, Diálogo a Fondo Blog post, March 19, 2020. International Monetary Fund (IMF), “La próxima fase de la crisis: Se necesitan nuevas medidas para una recuperación resiliente”, Diálogo a Fondo Blog post, July 16, 2020. Databases: International Trade Centre (ITC). With information from UN Comtrade (Database of Trade Statistics of the United Nations) and official sources: • El Salvador: Central Bank of Reserve. • Guatemala: Central Bank of Guatemala. • Paraguay: Central Bank of Paraguay. Descartes Datamyne (www.datamyne.com). With information from official sources: • Argentina: General Directorate of Customs. • Brazil: Partner countries. • Chile: National Customs Service. • Colombia: National Directorate of Taxes and Customs (DIAN). • Costa Rica: National Customs Service. • Ecuador: National Customs Service. • Mexico: National Institute of Statistics and Geography of Mexico (INEGI). • Panama: National Customs Authority. • Peru: National Superintendency of Customs and Tax Administration (SUNAT). • Uruguay: General Directorate of Customs. • Venezuela: Partner countries. Latin American Federation of Banks (FELABAN), Indicators Exchange rate (as compared to the US dollar), official website (http://indicadores.felaban.net), data as of June 2019.

Analyzed Harmonized System Codes (HS-codes)*: HS-Code**

Description

Electrical machinery and equipment and parts thereof; sound recorders and reproducers; television image and sound recorders and reproducers, parts and accessories of such articles.

8517

8517.69

8518

8518.10

Microphones and stands therefor.

8518.21

Loudspeakers; single, mounted in their enclosures.

8518.22

Loudspeakers; multiple, mounted in the same enclosure.

8518.29

Loudspeakers; not mounted in their enclosures.

8518.40

Amplifiers; audio-frequency electric.

8518.50

Amplifier sets; electric sound.

8519

Sound recording or reproducing apparatus.

8519.81

Sound recording or reproducing apparatus; using magnetic, optical or semiconductor media, n.e.c. in item no 8519.20, 8519.30 or 8519.50.

8519.89

Sound recording or reproducing apparatus; n.e.c. in heading no 8519.

8521

Video recording or reproducing apparatus.

8521.90

Video recording or reproducing apparatus; other than magnetic tape-type.

8525

8525.80

Television cameras, digital cameras and video camera recorders.

8528

8528.52

Monitors; other than cathode-ray tube; capable of directly connecting to and designed for use with an automatic data processing machine of heading 84.71.

8528.59

Monitors other than cathode-ray tube; n.e.c. in subheading 8528.52, whether or not in color.

8528.62

Projectors; capable of directly connecting to and designed for use with an automatic data processing machine of heading 84.71.

8528.71

Reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus; not designed to incorporate a video display or screen.

8528.72

Reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus; incorporating a color video display or screen.

9405

9405.10

Chandeliers and other electric ceiling or wall light fittings; excluding those used for lighting public open spaces or thoroughfares.

9405.40

Lamps and light fittings; electric, n.e.c. in heading no. 9405.

TOP IOO INTEGRATORS â&#x20AC;˘ REPORT 2019-2020 â&#x20AC;˘ ADDENDUM

* For the imports charts and graphs, this report only considered the Harmonized System Codes of products related to the audiovisual industry, for transactions carried out until August 2020. ** It is important to note that these tariff classifications include equipment, components and parts of Professional Audio and Video, along with consumer products, since the customs agencies of each country do not make a differentiation between both types of equipment and components for the import process.

44 94