TOP 5O DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019 by Latin Press, Inc.

Digital Signage Industry Outlook in Latin America 2019

REPORT 2019 ECONOMIC PERFORMANCE AND OUTLOOK KEY ASPECTS OF DIGITAL SIGNAGE INDUSTRY IN CHARTS COMPANIES PERSPECTIVES BY REGION TOP 50 DIGITAL SIGNAGE 2019 RANKING SUCCESS STORIES OF THE COMPANIES OF THE TOP 50

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 50 empresas latinoamericanas de Digital Signage - Report 2019 1st edition: May 2019 Research and writing: Ana María Mejía Angel AVI Latinoamérica Editor: Richard Santa Editorial Direction: Duván Chaverra 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 50 Digital Signage Companies in Latin America: How is it done?..........................4 Introduction ..................................................................................................................6 Chapter 1: Key aspects of D.S. Industry in charts ........................................................8 Most popular D.S. Segments ...................................................................................8 Most Common Brands ...........................................................................................10 Types of D.S. Solutions ..........................................................................................11 D.S. Equipment Imports by region and companies ...............................................12 D.S. Equipment Imports by origin country ............................................................13 Chapter 2: The Entrepreneurs perspectives ...............................................................15 Mexico ...................................................................................................................16 Central America and The Caribbean......................................................................21 Andean Region.......................................................................................................24 Brazil........................................................................................................................29 Southern Cone........................................................................................................31 Chapter 3: Top 50 Digital Signage Companies 2019 .................................................34 Mexico....................................................................................................................35 Central America and The Caribbean .....................................................................36 Andean Region.......................................................................................................37 Brazil........................................................................................................................38 Southern Cone........................................................................................................39 Chapter 4: Stories of the first places in the Top 50 D.S. Latin American Companies 2019 ....................................................................................................40 Mexico: SSL Digital ................................................................................................42 Central America: MediaChannel.............................................................................44 Andean Region: Enmedio.......................................................................................46 Southern Cone: Convergencia Digital....................................................................48 Chapter 5: Economic Outlook for the Latin American Regions...................................50 Infographic: Exports and Trade Balance in Mexico and Central America 2018.....54 Mexico, Central America and The Caribbean........................................................56 Infographic: Exports and Trade Balance in South America 2018 ..........................63 Andean Region.......................................................................................................64 Brazil and Southern Cone.......................................................................................68 Index of references......................................................................................................74

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA â&#x20AC;˘ REPORT 2019

Top 50 Digital Signage Companies in Latin America: How is it done? AVI Latinoamérica presents, for the first time, a ranking with the list of companies in the region that manage digital signage networks, which have been included in the Top 50 Digital Signage Companies in Latin America. This 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, include some of the most important companies in the region or countries to which they belong. It’s important to detail the methodology we used for this report. A complete compilation of information was made in order to consolidate a list of 50 of the most outstanding companies in Latin America, divided into five sub-regions (Mexico, Central America and the Caribbean, Andean Region, Brazil, and the Southern Cone).

For this, the nominations made by the manufacturers and distributors of many of the world’s most prestigious brands of Video and Digital Signage systems were taken into account, as well as a detailed monitoring by the team of AVI Latinoamérica journalists, relying on consultants and expert professionals with extensive knowledge of the industry. Subsequently, through a survey conducted online with each of these companies, they were asked about the number of digital signage displays they manage, along with complementary information that helps us understand how this segment of the region’s AV industry is behaving. With this information, we determined the hierarchy and ranked each of the 50 participant companies in the ranking, divided into 10 companies in Mexico, 10 in Central America, 10 in the Andean Region, 10 in Brazil, and 10 more in the Southern Cone. You can also nominate your company by writing to editorial@avilatinoamerica.com.

METODOLOGY 1

Mexico 10 IDENTIFICATION Central America 10 AND Andean Region 10 APPLICATION Brazil 10 COMPANIES OF THE COMPANIES Southern Cone 10

COMPILATION OF INFORMATION FROM COMPANIES

RANKING OF THE COMPANIES

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

Manufacturers Resellers Experts Associations

Number of managed screens in 2018

100%

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA â&#x20AC;¢ REPORT 2019

Introduction The advance of technologies and innovations for the Latin American AV industry continues without stopping. Of course, out of this the digital signage business is one of the most benefited, allowing for the creation of solutions with virtual and augmented reality, which will become one of the most popular trends in 2019, along with the Internet of Things (IoT), sensory experiences with aromas, and content interaction. However, this industry, like many others, faces obstacles to its growth, counting among them the economic circumstances of countries, because D.S. is an “equipment purchase-intensive” business, as Sebastián Obregón, CEO of the Colombian D.S. company Enmedio, expresses, for which the devaluation suffered by countries such as Argentina, Colombia and Venezuela slow down its growth. However, as will be seen in this report, digital signage

entrepreneurs can overcome this and, furthermore, be successful in their business, even creating some of the largest projects in the region. Regarding the global and regional economy, 2019 will be a year of economic uncertainties, mainly due to the commercial tensions between the United States and China, 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. 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.

TARGET AUDIENCES

• D.S. industry business people. • D.S. equipment manufacturers and distributors. • Market analysts and researchers. • Government and financial institutions. • Investors. • End users.

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 50 Latin American Digital Signage Companies – Industry Report 2019 analyzes how this economic prospect would impact the industry country by country, from the perspective of entrepreneurs that were part of the Top 50 of Latin American D.S. Companies ranking, made by AVI Latinoamérica.

Included in this report is key information regarding the industry, such as figures of imports made by companies in each country, the most-used brands of equipment and components in the region, the segments with the highest investment in Digital Signage projects, in addition to the 2018 sales figures of many of the D.S. companies that appeared in the 2019 ranking, along with their detailed contact information. This report will provide readers with a complete overview of this region’s D.S. industry, with the stories of their work trajectory, successful projects, and their comments and recommendations on trends and investment opportunities, as told by the business people interviewed for this document.

MAIN SEGMENTS OF DIGITAL SIGNAGE IN AMERICA LATINA 7.0% 7.5%

15.6%

12.1% 21.6%

36.2%

AIRPORTS AND TRANSPORTATION BANKS AND CORPORATE COMMERCE AND RETAIL RESTAURANTS AND HOTELS EDUCATION AND HOSPITALS OUTDOOR AND OTHER APPLICATIONS

Source: Information supplied by interviewed Digital Signage entrepreneurs in Latin America.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

CHAPTER 1

KEY ASPECTS OF D.S. INDUSTRY IN CHARTS Commerce and Retail segments are the ones that most benefit from Digital Signage installations throughout Latin America, followed by Airports, and in a lesser extent, Transportation (which includes bus stops and terminals), especially in Mexico and the Southern Cone, except Brazil. Education has the most modest participation in this industry, along with Residential applications. The latter was only reported in Brazil. Outdoor Digital Signage however, still has a long way to go and itâ&#x20AC;&#x2122;s still a smaller market for this industry, some of the reasons behind this are each countries laws regarding exterior advertising that restrict the number, location and sizes of the installed displays.

MEXICO, CENTRAL AMERICA AND THE CARIBBEAN

LATIN AMERICA 7.0% 7.5%

3.9%

15.6%

7.8%

20.8%

14.3%

12.1% 21.6%

15.6% 36.2%

37.7%

AIRPORTS AND TRANSPORTATION

BANKS AND CORPORATE

COMMERCE AND RETAIL

RESTAURANTS AND HOTELS

EDUCATION AND HOSPITALS

OUTDOOR AND OTHER APPLICATIONS

BRAZIL AND SOUTHERN CONE

ANDEAN REGION 5.9% 7.8%

11.3% 2.8%

13.7%

15.5%

11.3% 9.8%

33.3%

19.7%

39.4%

29.4%

AIRPORTS AND TRANSPORTATION

BANKS AND CORPORATE

COMMERCE AND RETAIL

RESTAURANTS AND HOTELS

EDUCATION AND HOSPITALS

OUTDOOR AND OTHER APPLICATIONS

*Source: Information supplied by interviewed Digital Signage entrepreneurs in Latin America. TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA â&#x20AC;¢ REPORT 2019

TOP BRANDS IN LATIN AMERICA

SCREENS AND DISPLAY BRANDS

D.S. MEDIA PLAYERS BRANDS

SAMSUNG

10.8% 2.4% 2.4% 3.6% 3.6%

NEC

31.3%

BENQ

BRIGHTSIGN

18.0%

28.0%

PLANAR UNILUMIN PHILIPS

28.9%

NUC INTEL GENERIC

PANASONIC

4.8% 4.8% 7.2%

PROPRIETARY SOFTWARE

12.0% 2.0% 2.0% 2.0% 6.0%

SHARP

IADEA AOPEN

12.0%

INVIRON ZUNI

8.0% 10.0%

OTHERS*

MAGIC INFO PRO

OTHERS*

* ABSEN, AOC, CHRISTIE,

* 4YOUSEE, ACO MEDIA

DAKTRONICS, HISENSE,

SYSTEMS, BROADSIGN, CAYIN, CHROME, FLASH, FOUR

KRAMER, VIEWSONIC.

WINDS, IBASE, LOGIC SUPPLY, SCALA, SMART PLAYER, VPRO, WEGENER, XIBO.

*OS FOR D.S. MEDIA PLAYERS BRANDS

MOUNTS BRANDS PEERLESS AV CHIEF

14.3% 2.0% 2.0% 2.0% 2.0% 4.1%

26.5%

VOGELâ&#x20AC;&#x2122;S GENERIC / NO BRAND STRONG RHINO

24.5%

ANDROID BRIGHTSIGN LINUX

14.6% 49.3%

BTECH AV MOUNTS

6.1% 16.3%

OWN BRAND

WINDOWS

4.9% 2.4% 4.9%

TIZEN PROPRIETARY OS IOS

9.8%

DT ELECTRONICS UNILUMIN

19.5%

OTHERS* * ABSEN, AEROVISION, BLACK RHINO, INNVECTOR, LOCH, ORION PC, PICKENS.

*Operating System

D.S. MANAGEMENT SOFTWARE BRANDS PROPRIETARY SOFTWARE SCALA

26.1%

23.9%

MAGIC INFO 4YOUSEE BRIGHTSIGN

Source: Survey conducted on an online platform among the entrepreneurs of the Top 50 Latin American Digital Signage companies from January 16 to February 22, 2019.

4.4% 10.9% 4.4% 4.4% 4.4% 10.9% 4.4% 6.5%

NAVORI BROADSIGN INVIRON FOUR WINDS OTHERS* * ACO DIGITAL SIGNAGE, BITRIX, CAYIN, DENEVA, EXACTUS, GSUITE, MONDAY, NOVA, RYARC, SIGNAPPS, WEGENER.

SOLUTIONS USED BY DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA IN 2018 COMMON D.S. APPLICATIONS 3.0% 2.2% 3.7% 5.2%

DISPLAY SIZES IN INCHES

STANDARD

25.4%

OVER 80”

8.7%

INTERACTIVE MIRROR

20.9% 20.2%

40” TO 50”

7.3%

VIDEO WALL

33.3%

PANORAMIC

19.4%

50” TO 65”

5.8%

TOTEM

TRANSPARENT

30” TO 40” LESS THAN 30” 65” TO 80”

15.9%

OTHERS*

29.0%

* DOUBLE-FACED, LED DISPLAYS (INDOOR AND OUTDOOR), PROJECTORS, ULTRASTRETCH.

LOCATION OF D.S. DISPLAYS

TYPES OF DISPLAYS IN D.S. 1.2% 4.8% 15.2%

26.4%

LED

INDOOR

LCD

OUTDOOR

HIGH BRIGHTNESS TOUCH

29.8%

MULTITOUCH OLED

16.8%

OTHERS*

18.4%

* PROJECTORS, PROPRIETARY

70.2%

SCREEN

16.8%

COMMON DISPLAY RESOLUTIONS 1.5% 1.5% 1.5% 1.5%

D.S. CONTENT MANAGEMENT

FULL HD

CLOUD

1.9%

PRIVATE SERVER

SATELLITAL

11K

16.7% 50.0%

PITCH 8K

50.9%

47.2%

FOR OUTDOOR

25.8%

OTHER RESOLUTIONS

**Source: Survey conducted on an online platform among the entrepreneurs of the Top 50 Latin American Digital Signage companies from January 16 to February 22, 2019.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

IMPORTS OF EQUIPMENT FOR DIGITAL SIGNAGE IN 2018

LATIN AMERICA COUNTRY

DATE RANGE

COMPANY

MAIN ORIGINS

Argentina

Jan-Jun 2017**

Sarmiento

China

$630,842 FOB

Chile

Jan-Dec 2018

Promatic Media

China

$475,001 CIF

Colombia

Jan-Dec 2018

Ciel

China

$53,930 FOB

Enmedio

China

$376,595 FOB

Innvector

China

$9,504 FOB

OOH Redes Digitales

China

$62,910 FOB

IMC Medios

United States

Masco - Meeting and Show Company

Mexico - United States

Motionad

Hong Kong

Costa Rica Jan-Sep 2018

PC Central

China - United States

Ecuador

Jan-Dec 2018

Neomedia

China

Peru

Jan-Dec 2018

Difusión Tecnológica

Portugal

VALUE IN USD

$76,276 CIF $229,694 CIF $4,065 CIF $152,686 CIF $8,170 CIF $12,288 FOB

FOB (Free on Board) CIF (Cost, Insurance and Freight)

* This chart only presents the information of the Latin American countries where the companies that are part of the Top 50 Digital Signage are located.

** Not all countries have information available in trade databases, while some countries information is available only up to June 2017, September and November 2018.

Source: Descartes Datamyne with Official Information.

We can observe that most of the Latin American Digital Signage companies don’t have a significant volume of imports, with the exception of those that have own brands of equipment manufactured overseas, as it is the case of the Colombian company Enmedio. It’s also to note that most of the companies found in the database of Descartes Datamyne had only one or two import processes during the entire year, while Argentina hasn’t reported updates in trade operations since June 2017.

Note: Only the import information of displays, monitors, and transmission devices was considered for this chart. Data regarding components or spare parts was not included. The complete list of tariff codes analyzed in this chapter can be found in the Index of References in page 74.

TOP 10 ORIGIN OF DIGITAL SIGNAGE EQUIPMENT IMPORTS 2018* MEXICO, CENTRAL AMERICA AND THE CARIBBEAN CHINA

6.9%

TAIWAN

13.8%

6.9%

UNITED STATES GERMANY

6.9% 13.8%

MALAYSIA

6.9% MEXICO JAPAN

10.3%

13.8%

10.3%

PANAMA SOUTH KOREA

10.3%

SPAIN

ANDEAN REGION CHINA

7.1%

MEXICO

7.1%

UNITED STATES HONG KONG

*Some countries information is available only up to June 2017, September and November 2018.

14.3%

7.1% 14.3%

SOUTH KOREA

7.1% INDONESIA

Source: Descartes Datamyne with Official Information

JAPAN

7.1%

14.3%

MALAYSIA PANAMA

10.7%

SPAIN

BRAZIL AND SOUTHERN CONE CHINA

3.6% 3.6% 7.1%

SOUTH KOREA

14.3%

UNITED STATES HONG KONG

10.7%

14.3%

JAPAN MEXICO

10.7%

TAIWAN

14.3% 10.7%

10.7%

GERMANY BRAZIL CANADA

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA â&#x20AC;¢ REPORT 2019

The representatives of many of the companies that appeared in the Top 50 Digital Signage 2019 companies shared their perceptions about the Latin American market trends, as well as some key information regarding the behavior of their business this year, along with details of their most outstanding projects.

CHAPTER 2

PERSPECTIVES OF THE ENTREPRENEURS

Clear Channel

Display Tech

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 338 screens.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 120 screens.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Mexico City, Guadalajara, Monterrey, Puebla, Querétaro, Cancun and Villahermosa.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 180,000.

David Becerril Brand Coordinator

• TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial, corporate and informative. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We have Street Play, a digital street height screen, which is located on main avenues for better viewing by motorists and pedestrians in the distance, it shows the time, information of interest and offers Wi-Fi connectivity.

Manuel Reyes Managing Director

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Mexico City and León, Guanajuato. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We installed a network of professional monitors on three floors of the P&G Mexico headquarters for their new offices, and an innovation center for communication of corporate information, as well as a network of monitors administered locally with a digital signage software based on the cloud, where content is loaded, modified and managed. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? Migrate server-based management services to the cloud, reducing the cost of apps and hardware. We’ll see the creation of more interesting content for the end user, giving a better experience with digital signage, and an increasing integration of content with hardware to create multisensory experiences. • GROWTH PROSPECTS FOR 2019: Our perspective is to grow much more in integration, wholesale sale of AV solutions, and the NEC Display brand.

Mexico

Kolo

Multimedia Corporativa

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage over 3,000 screens.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: Over 6,000 screens.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 1,000,000.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 750,000.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We are throughout Mexico.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Most networks cover the entire country, from Tijuana to Cancun.

• TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Corporate and informative.

• FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We have Cinemex, the second most important cinema brand in Mexico, with over 350 locations. The solution we developed allows them to communicate the offer of products –which varies from one venue to another–. In this project we manage content and format for twelve different communication channels. We’re in charge of the installation of the screens, content creation, platform management and technical support.

Germán Robles CEO

Jorge Sánchez Managing Director

• FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We currently manage a circuit for an international financial institution, with over 2,000 locations in Mexico. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? We’ll see interactivity and augmented reality in Digital Signage solutions. • GROWTH PROSPECTS FOR 2019: This year we expect growth between 15 and 17 percent.

• WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? As the industry evolves, some trends include an improved approach in technology solutions for data analysis, creating dynamic content guidelines. On the other hand, as interactivity gets positioned, the technology will evolve from one-touch screens to multitouch screens, and later multi-user and ultra HD / 4K screens. In addition, there will be alternatives to touch interaction, such as hand and voice activated screens. • GROWTH PROSPECTS FOR 2019: We can clearly see a boom in the adoption of screens as a means of communication in corporate environments in the Mexican market. It’s particularly interesting to note that companies seek to communicate better with their audiences.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

PERSPECTIVES OF THE ENTREPRENEURS

Pixel Window

Promo Espacio

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 500 screens.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 4,300 screens.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 100,000, approximately.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: In 2018 we had revenues above 15 million dollars.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We have screens in the 32 states of Mexico.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Throughout Mexico, the Dominican Republic, Jamaica, Costa Rica and Panama.

Roberto Percastegui CEO

• FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We currently have control of some Cinépolis venues, with the possibility of winning their 600 cinema venues worldwide. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? The main trends we’ve seen so far are AI computers that have response capacity according to data analysis. Also, integration of touch devices with which the user can interact with the content and make decisions based on the information presented. We’ll also see growth in Pitch LED screens with more accessible prices and Retail segment using Digital Signage as a means to broadcast to customers. • GROWTH PROSPECTS FOR 2019: We expect to grow in our network by at least 1,500 screens managed by 2019, with clients such as Cinépolis, Aeroméxico, ETN, among others.

Julio César Gabino Suárez Technology Coordinator

• FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: The implementation of a banner (a 3x1 videowall) in over 600 branches of Banco Azteca, covering all of Mexico. This is the largest augmented reality videowall network in the world, and we’re working to receive a Guinness Record. The architecture includes loudspeakers, webcam for augmented reality content, audio sensor that automatically adjusts the volume according to the environmental noise, and has a real resolution of 5760 x 1080 pixels. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? The trend we’ve mostly identified is interactivity, as the audience is increasingly demanding contents and benefits that screens can offer them. • GROWTH PROSPECTS FOR 2019: We intend to increase the number of screens to over 6,000, we also seek to have the highest sales of advertising in the DOOH (Digital Out-OfHome) segment in Mexico, as well as becoming an international reference in the interaction with the audience using Augmented Reality.

Ultra Acoustics

SSL Digital

William Narchi CEO

Ana María Hernández Batis General Director of Sensory Marketing

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 18,000 screens.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 525 screens.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Throughout Mexico and Central America.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 350,000.

• FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We are in over 1,400 branches of the Citibanamex bank with LED screens, videowalls, touchscreens, among others. In these branches we transmit the contents via satellite and we can differentiate each screen from the production. We also create many hours of content for the bank, as well as customer entertainment segments. We make programs for employees and broadcast them before opening hours, both live and pre-recorded.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Throughout the country, mainly in Mexico City, Monterrey and Guadalajara.

• WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? 4K and 8K screens, as well as virtual reality; counting and profiling of people that visit establishments with screens that offer content that reacts to gender and age. • GROWTH PROSPECTS FOR 2019: Our company plans to grow 20% in sales and sites compared to the previous year, given the need for customers to use better marketing tools within their establishments.

• FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: In the Retail segment we have accounts in over 100 locations where we broadcast daily content. During 2018 we launched the first live signal to all screens of one of these accounts, from the Hilton Hotel in Mexico City, transmitting a corporate event to all branches. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? Commercial Intelligence solutions come as facial recognition, interactivity in social networks and bidirectional interaction solutions. • GROWTH PROSPECTS FOR 2019: We expect growth in our national participation for commercial intelligence solutions and maximization of the end user experience in any space.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

PERSPECTIVES OF THE ENTREPRENEURS

Zuni

Juan Acosta Commercial Director • DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 20 screens. • APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 8,000. • CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We are throughout Mexico. • TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial, corporate and informative. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We have 4x1 videowall screens for corporate communication for the Ganon Group. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? We’ll see improvements in schedule settings, real-time reports, third-party notifications, and integration with other POS platforms. • GROWTH PROSPECTS FOR 2019: We plan to have a multisensory growth for the audio, video and aroma divisions.

Central America and The Caribbean Comunicaciones Globales Alejandro Carbajal General Manager Honduras

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We have 100 screens in different hotels, which is our main focus. • APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: Between USD 35,000 and USD 45,000. • CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We have projects in the cities of Tegucigalpa and San Pedro Sula in Honduras; in the city of San Salvador, El Salvador and in Guatemala City.

• WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? We’ll see more Cloud services, as well as smaller, more powerful and economical network players, added to a greater need for customers to migrate from printed and static solutions to Digital Signage. • GROWTH PROSPECTS FOR 2019: We have high expectations, we want to double Digital Signage sales and venture into the education segment.

• FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: Our main project is the Clarion Hotel in Tegucigalpa, which has screens in thirteen meeting rooms and the main lobby, as well as signalized areas on stairs and corridors. We use a platform that allows us to manage events throughout the year, by room, time, and date, add videos, logos, images, and even live content via RSS with updates in real time. We use Samsung screens and the Four Winds Interactive system.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

PERSPECTIVES OF THE ENTREPRENEURS

GPO Vallas

Masco

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: In Central America we have four screens in Panama and two in Guatemala in large format, 40 in Mexico and twelve in Peru.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 200 screens.

Juan Carlos Claverie General Manager Panama

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: We report in Panama USD 100,800, in Guatemala USD 63,000, in Mexico USD 1,240,000, and in Peru USD 864,000. • CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Panama, Mexico, Guatemala and Peru. • TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? Interaction with the type of consumer that’s passing by the screen, detecting their approximate age and gender. • GROWTH PROSPECTS FOR 2019: We expect to grow 5%.

Victor Carvajal Commercial Director Costa Rica

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: In Managua, San José and Santo Domingo. • TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial and informative. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: The largest project we have is the Juan Santamaría International Airport in Costa Rica, where we have 105 screens. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? We are seeing migration to LED panels that are replacing flat TV screens. • GROWTH PROSPECTS FOR 2019: We expect to grow 6%.

MediaChannel

Vosmedia

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage over 1,400 screens in more than 600 locations.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We have 25 screens.

Patricio Burban General Manager Costa Rica

Sergio Galindo General Manager Guatemala

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We cover the entire Central American territory. • TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial, corporate, informative and educational. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: In reality, every project is special for us, since each client has their particular challenges. I can mention a project that we had with several restaurants in which our client wanted to receive the transmission of all the soccer matches of a World Cup, a project which will be discussed in more detail further on in this report. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? We are anticipating more development of selfconsumption and self-management applications for end users, making the interaction more direct with the consumer.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 30,000. • CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Guatemala. • TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial, corporate and informative. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? Irregular videowalls, in addition to attractive content linked to social media. • GROWTH PROSPECTS FOR 2019: We expect to grow 50%.

• GROWTH PROSPECTS FOR 2019: We seek to grow in countries like Guatemala and Honduras, and we don’t rule out the possibility of reaching the Caribbean. .

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

PERSPECTIVES OF THE ENTREPRENEURS

Ciel

Difusión Tecnológica

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We have 1,100 screens.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 538 screens.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Bogota and other regions in Colombia.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: In addition to Lima, we are present in 18 cities of the country.

Angie Guio CSO Colombia

• TYPES OF CONTENT THAT BROADCAST ON SCREENS: Corporate and informative. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We have 145 screens in a family compensation fund in Colombia, where we transmit informative and dynamic content. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? Content personalization, and on mobile devices there will be great opportunities in the integration of new technologies with D.S. as well as the construction of two-way experiences, from the organizations with their clients.

Guillermo Gutiérrez General Manager Peru

• TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial, corporate and informative. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We manage the networks in one of the largest pharmacy chains in the country, as well as two DOOH networks. We’ve also began to manage contents for a convenience store chain that was recently established in the country, which has a very aggressive growth plan. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? We will increasingly see more interactivity, and large format LED screens, both indoor and outdoor. • GROWTH PROSPECTS FOR 2019: We have high growth expectations, in comparison to the previous year, since we are becoming omnichannel, the market is maturing and the Retail segment continues to grow.

Andean Region

Enfoko

Enmedio

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 400 screens.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We have 4,500 screens.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 400,000 per year.

• APPROXIMATE SALES VALUE MANAGEMENT BY NOV. 2018: USD 5,000,000.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We are throughout Colombia.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Mainly in Colombia, we’re also in Mexico, Argentina, Chile, Peru and Brazil.

Lukasz Jurgas Manager Colombia

Ricardo Sotelo Marketing Director Colombia

• TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial, corporate and informative. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We mainly emphasize the content management at the Corferias Convention Center and the main veterinary clinics in Bogota. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? We will have a lot of content creation for touch screens. • GROWTH PROSPECTS FOR 2019: We expect a growth of between 200 and 300 percent.

FOR

SCREEN

• TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial, corporate and informative. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: Our most outstanding project is the one we developed for the telecommunications company Tigo, for which different formats and technologies with dynamic and interactive contents were implemented in stores. This project will be discussed in more detail later in this report. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? Holography, and gestural and voice interaction. • GROWTH PROSPECTS FOR 2019: Today, we are leaders in Colombia and we are going to grow by double digits in sales, as well as in participation in the OOH segment.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

PERSPECTIVES OF THE ENTREPRENEURS

Imvinet

Innvector

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage over 1,000 screens with 440 D.S. players.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage about 300 screens.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: Approx. USD 5,000 / month for administration and monitoring, and another USD 2,500 / month for advertisement sales.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We are present throughout the country.

Juan Carlos García-Luján CEO Venezuela

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Venezuela, Spain, United States, Colombia, Panama, Trinidad and Tobago. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We highlight Empresas Polar, for which we distribute content to each of their 65 branches. At the same time, it allows each one to have a space to create and display their own content, taking advantage of the internal databases for broadcasting diverse interactive contents of interest. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? We see tactile or gestural interactivity with displays as one of the most marked trends in 2019. Another possibility that has been growing since 2018 is audience measurement, which has improved a lot and customers see it as a tool to measure the efficiency of each screen. • GROWTH PROSPECTS FOR 2019: Due to the negative economic environment that we have been experiencing in Venezuela, growth will be slower, but it has not stopped increasing during the fourteen years we’ve been in the market. Due to the new trends that we will see, the audience will continue to integrate with technology, leading to D.S. to become a “must have” in any space.

Xiomara Castro Commercial Director Colombia

• TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial and corporate. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? We’ll see content that responds to the surrounding audience, with systems capable of identifying them so more effective content is displayed, as well as an increase in interactive applications that integrate advertising with personal mobile devices. • GROWTH PROSPECTS FOR 2019: In a market that grows every day, with increasingly specialized and demanding audiences, we estimate growths above 22%.

Neomedia

Visualmedia Technology

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 1,600 screens.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 160 screens.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 380,000 approximately.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 250,000.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We offer services in 50 cities nationwide.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We’re in the main cities: Bogotá, Medellin, Cali and Barranquilla, and in 30 other intermediate cities.

Diego Sarrade General Manager Ecuador

Mauricio Botero Manager Colombia

• FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We have several outstanding projects, but I’d like to mention in particular our work with the Banking segment: we work with recognized banks in the country, reaching 48 cities with over 550 displays. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? Measurements through enhanced facial recognition will help to achieve a better understanding of the efficiency of campaigns in D.S., along with other elements such as proximity sensors and touch screens that allow integrating user data with metrics, while social media will allow information to move improving the profile of the audience, and therefore campaigns to be organized. • GROWTH PROSPECTS FOR 2019: For 2019 we’re implementing LED screens for interiors with designs integrated with the architecture of our customers, as well as sensors and facial recognition systems.

• FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: For the past six years we’ve been implementing a D.S. system for the cement company Cementos Argos, aimed at the over 2,000 drivers that transport cement. This staff doesn’t have regular access to computers, so this solution keeps them informed of corporate news, entertainment, live events and allows interaction with mobile devices. We had the challenge of creating a turnkey solution, from the design of the content itself and the writing of texts, to hardware and software. These displays are installed in remote, jungle areas with poor connectivity where we only have a 512kbps satellite channel. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? We’ll be seeing interactive contents between display and mobile devices, as well as flexible OLED screens and irregular video walls. • GROWTH PROSPECTS FOR 2019: We expect to double our sales, consolidate our clients with more attractive, interactive content, and speed up the creation of information.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

PERSPECTIVES OF THE ENTREPRENEURS

Xegmenta

Alejandro Restrepo Director of Corporate Development Colombia • DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 650 screens. • APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 1.1 million. • CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We have a presence in Mexico, Haiti, the Dominican Republic, El Salvador, Nicaragua, Honduras, Guatemala, Costa Rica, Panama, Peru, Ecuador, Colombia, Bolivia, Suriname, Brazil, Argentina, Chile and Uruguay. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We implemented the corporate communication system TeVes for the Bancolombia Group, aimed at employees in administrative offices, integrated with their bidirectional communication platforms, their private streaming platform, and videoconferencing tools for live HD transmissions. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? Massification of live broadcasts and effectiveness measurement per campaign and advertising piece. Additionally, we’ll have dynamic information and integration via API to corporate databases, to display data in real time. • GROWTH PROSPECTS FOR 2019: We expect a 50% increase in managed displays or systems this year.

Brazil

Helloo Mídia

Inviron Technologies

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 2,000 screens.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We have 25 screens.

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 2,200,000.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Throughout the Brazilian territory.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We are in São Paulo, Rio de Janeiro, Curitiba, Santos, Sorocaba, Guarulhos, Osasco, Barueri, Ribeirão Preto, Santo Andre, São Bernardo, São Caetano and Salvador.

• TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial, corporate and informative.

Allan Urel Director of Operations

Douglas Pombo CEO

• TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial and informative. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We provide the communication service for condominiums, allowing the landlord to inform residents about relevant news, thus eliminating the traditional signs inside the elevators. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? We will be seeing technology for facial recognition, people counting and “eyes on” detection that identifies if the audience is looking at the screen.

• FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We are present in the main airports, metros, buses, shopping centers, urban furniture, LED panels, among others. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? Mainly the measurement of the audience and programmatic media. • GROWTH PROSPECTS FOR 2019: We have the best expectations, and the new political scenario in Brazil contributes a lot to this. We expect to have growth above the average of recent years.

• GROWTH PROSPECTS FOR 2019: We intend to grow our network by 100%, that is, over 2,000 screens.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

PERSPECTIVES OF THE ENTREPRENEURS

LedWave

Tiago Brito Ferreira CEO • DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 68 screens. • APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: USD 7.8 million. • CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Throughout Brazil. • TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial and corporate. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We highlight the high definition LED billboard in Brasilia, of 10,760 square feet in size, in which we present renowned brands advertisements such as Netflix, Coke, Heineken, among other big players. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? A 360º service in terms of sales, artificial intelligence performance and mobile applications, which allows customers and partners to verify broadcast content in real time. • GROWTH PROSPECTS FOR 2019: We have even better perspectives for this year as we continuously seek to improve sales, new technologies, added to an improvement in the country’s economy thanks to the new government.

Southern Cone

Clear Channel

Convergencia Digital

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 84 digital outdoor elements.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We carry over 12,500 screens with different software solutions.

Romina Fuks Marketing Manager Chile

Luis Maria González Lentijo CEO Argentina

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We are in all cities of Chile, while the company is present in over 30 countries worldwide. • TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial and corporate. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We’re working on a double impact project through the use of cell phones and public roads, with geolocation provided by our supports, and push notifications. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? In terms of development, we’ll be seeing augmented reality, gaming, 3D, mobile connection and user experience. Regarding displays, we’re working to achieve a better resolution and clarity.

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We’re in 23 provinces and more than 250 cities in Argentina, and we also have a presence in Uruguay, Peru and Chile, as well as in the United States. • TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial and corporate. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We currently manage large high-complexity circuits, such as the Digital Menu Board of the state-held Argentine energy company YPF, as well as Musimundo TV, the most important communication local circuit for retail stores, Musimundo, which we’ll discuss further in this report.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

PERSPECTIVES OF THE ENTREPRENEURS

Innova DS

Servimática

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 50 screens.

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: Around 150, including digital signage and queue management.

Juan Pablo González Director Argentina

• CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: Bahía Blanca, in Argentina. • TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Corporate. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? Totems, displays for showcases and corporate screens.

Juan Beunza Partner Director Uruguay

• APPROXIMATE SALES VALUE FOR SCREEN MANAGEMENT BY NOV. 2018: The monthly income for the sale and lease of the systems only is around USD 10,000. • CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: We’re in almost all of Uruguay, and in Paraguay in eleven branches of the company Cambios Chaco. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: One of them is Uruguay’s public health network which includes fourteen centers with over 40 screens. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? I think D.S. will be increasingly interactive with audiences, with technology that includes IoT, facial recognition, apps for smartphones, among others. • GROWTH PROSPECTS FOR 2019: We’ll continue to grow in the digital signage and queue management solutions. In 2019 we intend to install twice as many screens as we installed in 2018.

Wall Street Vía Pública Sebastián Piatti Courvoisier Designer Argentina

• DIGITAL SIGNAGE SCREENS MANAGED BY NOV. 2018: We manage 29 screens, which are installed in association with Jupiter. • CITIES OR COUNTRIES WHERE THE MAJORITY OF SCREENS ARE INSTALLED: In the Autonomous City of Buenos Aires, and in the city of San Isidro, north of Buenos Aires. • TYPES OF CONTENT THAT ARE BROADCAST ON SCREENS: Commercial and corporate. • FEATURED PROJECTS OF CURRENTLY MANAGED SCREENS: We highlight the kiosks of newspapers and magazines in Greater Buenos Aires. We are in 25 locations, each of which is part of the street furniture, and our high definition LED screens allow to broadcast dynamic content through ten-second spots. • WHAT ARE THE TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE THAT WILL BE SEEN IN 2019? An increase in programmatic purchases is expected for 2019. • GROWTH PROSPECTS FOR 2019: We believe that we’ll have a 100% growth compared to the previous year.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

CHAPTER 3

2019

RANKING BY REGION

Mexico No.

COMPANY

SEGMENT

REPRESENTATIVE

SSL DIGITAL

Airports, banks, commerce, corporate, retail, restaurants

MULTIMEDIA CORPORATIVA

Airports, banks, commerce, corporate, restaurants

PROMOESPACIO

Airports, banks, commerce, corporate, retail

KOLO

Banks, commerce, retail, restaurants

RENTABLE

Corporate, commerce, retail

PLAXMA

Commerce, retail, restaurants

ISA CORPORATIVO

Airports, transportation

ULTRA ACOUSTICS

Retail, restaurants

PIXEL WINDOW

Airports, banks, commerce, corporate, education, retail restaurants, transportation, hospitals

CLEAR CHANNEL

Banks, commerce, corporate, retail, restaurants, transportation

WEB INFO

William Narchi

wnarchi@ssl.com.mx

(52) 55 1036 0739

www.ssl.com.mx

Jorge Sánchez

jorges@multimediacorp.net

(52) 55 5544 1722

www.multimediacorp.net

Julio César Gabino

jgabinos@tvazteca.com.mx

(52) 55 2898 0770

www.promoespacio.com.mx

Germán Robles

g.robles@kolo.digital

(52) 55 1107 8686

www.kolo.digital

Adriana Magaña

amagana@rentable.mx

(52) 55 5272 0018

www.rentable.mx

Arturo Chávez

info@plaxma.tv

(52) 81 8000 5722

http://plaxma.tv/plaxmacorp

Gabriela Inclán

ginclan@isa.com.mx

(52) 55 5661 4731

http://isa.com.mx

Ana María Hernández

ahernandez@uacoustics.com.mx

(52) 449 464 8432

http://uacoustics.com.mx

Roberto Percástegui

gerencia@pixelwindow.com.mx

(52) 442 962 1040

www.pixelwindow.com.mx

David Becerril

davidbecerril@clearchannel.com.mx

(52) 55 3488 5989

www.clearchannel.com.mx

# MANAGED SCREENS 2018

18,000

6,000

4,300

3,000

2,000

700

540

525

500

338

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

Central America and the Caribbean COMPANY

No.

SEGMENT

MEDIACHANNEL

Airports, banks, commerce, corporate, education, retail, restaurants, transportation

MASCO MEETING AND SHOW COMPANY

Airports, corporate, hotels

COMUNICACIONES GLOBALES

Airports, banks, commerce, corporate, education, retail, hospitals, hotels

IMC MEDIOS

Airports, commerce, retail, transportation

SARMIENTO

Commerce, transportation, outdoor

VOSMEDIA

Corporate, retail, hospitals, outdoor

GPO VALLAS

Retail, outdoor

ISG

Commerce

MOTIONAD

Airports, banks, commerce, education, retail, restaurants, transportation, hospitals

PC CENTRAL

Commerce, corporate, retail

REPRESENTATIVE

WEB INFO

Patricio Burbán

patricio@mediachannel.net

(506) 4052 0400

www.mediachannel.net

Víctor Carvajal

victor@masco.la

(506) 8928 2020

www.masco.la

Alejandro Carbajal

acarbajal@comunicacionesglobales.com

(504) 2540 0444

www.comunicacionesglobales.com

Oscar Badilla

obadilla@imcmedios.com

(506) 2239 9801

www.imcmedios.com

Yesica Abreu

yabreu@sarmiento.net

(1 809) 537 1001

www.sarmiento.net/dominicana

Sergio Galindo

sigalindo@vosmedia.com

(502) 2387 0700

www.vosmedia.com

Juan Carlos Claverie

claverie.juancarlos@gpovallas.com

(507) 3960 077

www.gpovallas.com

Alberto McQueen

amcqueen@isg.com.pa

(507) 836 6057

http://isg.com.pa

Warner Quiros

wquiros@motionad.tv

(506) 2215 0304

www.motionad.tv

Gabriel Montero

gmontero@cspc.co.cr

(506) 2549 2000

www.pccentralservicios.com

COUNTRY

# MANAGED SCREENS 2018

COSTA RICA

1,400

COSTA RICA

200

HONDURAS

100

COSTA RICA

DOMINICAN REPUBLIC

GUATEMALA

PANAMA

N/A

COSTA RICA

N/A

COSTA RICA

N/A

Andean Region No.

EMPRESA

SEGMENT

ENMEDIO

Airports, banks, commerce, corporate, education, retail, restaurants, gyms

NEOMEDIA

Banks, corporate, education, retail, restaurants

CIEL

Banks, hospitals, telecommunications

IMVINET

Airports, banks, commerce, corporate, education, retail, restaurants, transportation

OOH REDES DIGITALES

Commerce, corporate, retail, restaurants

XEGMENTA

Banks, corporate

DIFUSIÓN TECNOLÓGICA

Banks, commerce, corporate, education, retail, restaurants, outdoor

ENFOKO

Banks, commerce, corporate, retail

INNVECTOR

Commerce, corporate, education, retail

VISUALMEDIA TECHNOLOGY

Banks, commerce, corporate, retail, transportation, hospitals

REPRESENTATIVE

WEB INFO

Ricardo Sotelo

ricardo.sotelo@enmedio.com.co

(57) 1 747 0101

www.enmedio.com.co

Diego Sarrade

comercial@neomedia.ec

(593) 9 9600 0200

http://neomedia.ec

Angie Guio

aguio@cielingenieria.com

(57) 1 327 9000

www.ciel.com.co

Juan Carlos García-Luján

garciajc@imvinet.com

(58) 212 232 7259

www.imvinet.com

Camilo Pérez

camilo.perez@oohrd.com

(57) 1 695 4409

www.oohrd.com

Alejandro Restrepo

darestrepo@xegmenta.com

(57) 1 600 9088

www.xegmenta.com

Guillermo Gutiérrez

guillermo.gutierrez@difusion.com.pe

(51) 1 616 0800

www.difusion.com.pe

Lukasz Jurgas

lukasz.jurgas@enfoko.co

(57) 312 576 9458

www.enfoko.co

Xiomara Castro

comercial@innvector.com

(57) 1 443 1010

www.innvector.com

Mauricio Botero

mauricio.botero@visualmediatec.com

(57) 4 589 8181

www.visualmediatec.com

COUNTRY

# MANAGED SCREENS 2018

COLOMBIA

4,500

ECUADOR

1,600

COLOMBIA

1,100

VENEZUELA

1,000

COLOMBIA

1,000

COLOMBIA

650

PERU

538

COLOMBIA

400

COLOMBIA

300

COLOMBIA

160

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

Brazil COMPANY

No.

SEGMENT

ELETROMIDIA

Airports, commerce, retail, transportation, outdoor

WIPLAY

Corporate, commerce, retail, restaurants, outdoor

HELLOO MÍDIA

Residential

TVSIN - SINTONIA COMUNICAÇÃO

Commerce, corporate, retail, restaurants

WTW DIGITAL SIGNAGE

Commerce, corporate, retail, restaurants

LEDWAVE

Airports, commerce, corporate, retail, restaurants

INVIRON TECHNOLOGIES

Airports, banks, commerce, corporate, retail, restaurants, transportation

BESMARTCOMM

Corporate, commerce

CLEAR CHANNEL

Outdoor

ELEMIDIA

Commerce, retail, residential

REPRESENTATIVE

WEB INFO

Paulo Badra

paulo@eletromidia.com.br

(55) 11 3065 7522

http://eletromidia.com.br

André Luiz Sabatini

comercial@wiplay.com.br

(55) 11 9 7423 3579

www.wiplay.com.br

Allan Urel

allan@helloo.com.br

(55) 11 9 4014 7950

www.helloo.com.br

Antonio José Canjani

antonio@sintonia.com.br

(55) 11 3542 5264

www.tvsindigitalsignage.com.br

Osvaldo Morales

omorales@wtwdigital.com.br

(55) 11 3554 2302

http://wtwdigital.com.br

Tiago Brito Ferreira

tiago@ledwave.com.br

(55) 62 3921 7812

http://ledwave.com.br

Douglas Pombo

dpombo@inviron.com.br

(55) 11 3254 7660

www.inviron.com.br

Alessandro Ielo

hi@besmartcomm.com

(55) 41 3091 8698

www.besmartcomm.com

Larissa Medialdéa

larissamedialdea@clearchannel.com.br

(55) 11 2133 5800

www.clearchannel.com.br

Sandro Moretti

sandro.moretti@elemidia.com.br

(55) 11 4935 0000

http://elemidia.com.br

# MANAGED SCREENS 2018

6,100

5,000

2,000

1,200

230

N/A

Southern Cone COMPANY

SEGMENT

CONVERGENCIA DIGITAL SIGNAGE

Airports, banks, corporate, retail

PROSIGNAGE

Banks, corporate, commerce, retail, restaurants

SARMIENTO

Commerce, transportation, outdoor

SERVIMÁTICA

Banks, commerce, retail, transportation, hospitals

CLEAR CHANNEL

Outdoor

INNOVA DS

Retail, hospitals

MASSIVA

Airports, commerce, retail, transportation, outdoor

WS VÍA PÚBLICA

Banks, commerce, corporate, restaurants

OBVIO DIGITAL SIGNAGE

Airports, retail (duty free)

PROMATIC MEDIA

Commerce, retail, restaurants

No.

REPRESENTATIVE

WEB INFO

Mariela Scicchitano

mscicchitano@convergenciads.com

(54) 11 4795 3855

http://convergenciads.com

Jorgelina Valmarrosa

ventas@prosignage.com.ar

(54) 11 5031 8784

www.prosignage.com.ar

Matías Zardain

mzardain@sarmiento.net

(54) 11 4018 5100

www.sarmiento.net

Juan Beunza

juan.beunza@servimatica.com.uy

(598) 2709 6633

www.servimatica.com.uy

Romina Fuks

rominafuks@clearchannel.cl

(56) 2 2430 5800

www.clearchannel.cl

Juan Pablo González

pablo@innovads.com.ar

(54) 29 1473 4126

www.innovads.com.ar

Karen Soto

ksoto@massiva.cl

(56) 2 2956 3200

www.massiva.cl

Mariano Oreguy

marianooreguy@wallstreet.com.ar

(54) 11 4896 2015

http://wallstreet.com.ar

Diego Tarallo

obvio@obvio.com

(598) 2623 4565

www.obvio.com

Jorge Fernández

jfernandez@promaticmedia.cl

(56)2 2718 6766

www.promaticmedia.cl

COUNTRY

# MANAGED SCREENS 2018

ARGENTINA

12,500

ARGENTINA

7,860

ARGENTINA

201

URUGUAY

150

CHILE

ARGENTINA

CHILE

ARGENTINA

URUGUAY

CHILE

N/A

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

CHAPTER 4

THE FIRST OF THE TOP 5O DIGITAL SIGNAGE LATIN AMERICAN COMPANIES 2019

For the Digital Signage Latin American companies, being in the first place of each region in this Top 50 is an important recognition for their constant effort and dedication. Thatâ&#x20AC;&#x2122;s why we invited them to share their experiences in the industry and their comments on new trends and interests of potential customers, for each of the Latin American regions, along with their success stories.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA â&#x20AC;¢ REPORT 2019

Mexico

“MEXICO HAS EVERYTHING NECESSARY TO CREATE FIRST WORLD DIGITAL SIGNAGE”.

SSL Digital Mexico

José Antonio Talavera Abaid

Director of Content, Marketing and CRM

For the last twenty years, José Antonio Talavera has been interested in finding opportunities for innovation and development of new projects. About ten years ago, he discovered the digital signage industry, which came as a surprise, and has enabled him to live a constantly challenging experience. He’s currently the Director of Content, Marketing and CRM at Digital SSL. This business administrator has always been very focused on marketing and finance, “these are the careers I like”, he says. And as a complement to his education, he has completed diploma courses in Design Thinking with the MIT Sloan School of Management. “My first contact with the content industry was with the MSN website, creating value elements for website publications. I also worked with YouTubers and social media about ten years ago, when the boom was beginning”, he recalls.

For Talavera, among the things he enjoys the most in this industry is that “it’s not a static business, it has a reach that draws together many worlds, connecting web with analytics, online and offline communication. It’s a hybrid that doesn’t stop evolving and we want to normalize to see screens and displays everywhere”, he explains. He also highlights that digital signage is “an unblockable media, it’s not possible to do scrolling”, and for this reason there must be a “responsibility for relevance, to distribute enriching content with proper context for the audience”.

SSL Digital

Two featured projects Talavera mentions two highlighted projects for the company: the first was the D.S. installation in all branches of the Citibanamex bank, the most extensive project carried out so far, which includes displays, external communication, LED panels, together with other integration solutions such as teleconferencing and apps for tablets. The entire implementation of this project has not only been designed for clients, it’s also used in internal communication for bank employees, used to transmit live programs and training exclusively for them.

TRENDS AND PROSPECTS FOR THE INDUSTRY IN 2019 Talavera comments that digital signage is no longer just about communicating information, “customers now want to create experiences” beyond just the installation of a display. “We’re doing 2.0 Digital Signage, with bidirectional communication, using analytics and Big Data that allows us to identify who is looking at the screen, if they follow our client in social media. Digital signage is a window for talking to our audience”. Therefore, this manager states that the digital signage business is evolving to become content consultants, marketing and business strategists.

In addition, there is the National Auditorium, where the existing traditional signage was renovated with LED screens for exteriors and a dedicated communication system. This updates the content in accordance with the schedule of shows and events, further to advertising being able to supplement it. This project is of special relevance “because it’s one of the most important landmarks in Mexico City” with “enormous” external traffic, Talavera explains, adding that the installation allows the flexibility to update content for each event and concert, and on every screen. “We created a new form of communication in a well-known landmark”, he concludes.

For SSL Digital, 2018 was a year of “learning and growth, we defined goals and objectives for the following years and we identified the businesses we want to target in the future”, and by 2019, “we have a very aggressive growth plan, ranging from 35 to 40 percent, because we’ve found many business opportunities and want to implement a new market standard”. Regarding his views on the industry, Talavera says that the digital signage business is growing and emphasizes that customers don’t want a “homemade solution, they want a professional solution”, adding that “Mexico has everything necessary to create first world digital signage”.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

Costa Rica Central America

“THE UX AND DIGITAL SIGNAGE BECOME INTEGRATED TO CREATE AN

MediaChannel Costa Rica

EXPERIENCE BEYOND THE SERVICE”.

Patricio Burban General Manager

With over twelve years of experience in the audiovisual industry, Patricio Burban is an advertisement designer with a specialization in Marketing from Veritas University in Costa Rica. For the past three years, he’s been involved with digital signage, the same time he has been the General Manager at MediaChannel. Burban recalls that it was at this company where he formalized his knowledge in D.S., and discovered that among the aspects that he’s most passionate about in this business is “the capacity for wonder” they can create for their clients: “we’ve had requests that have allowed us to integrate services and products to achieve amazing results, creating a great final product for our customer satisfaction”.

Founded thirteen years ago by Eduardo Sorí, MediaChannel was a pioneer provider of digital signage services in Costa Rica, reaching also Panama, El Salvador, Nicaragua and will soon be in Honduras. And while the company can assist with simple installations, such as data integration, “we can develop a complete line-control service with advertising, music, and even aroma”, explains Burban, who adds that the company’s differentiated service is their 24/7 support for clients, regardless of the complexity.

MediaChannel One featured project

The manager recalls a project carried out for a client with a number of restaurants in Costa Rica, especially through the way it was implemented, “just two days before the beginning of a soccer World Cup”. Because not every game was going to be broadcast on open television, subscriptions to premium channels became necessary which was cause for a greater challenge. “This particular client was advertising on every match, so the solution we gave him was to integrate those premium broadcasters’ apps into the reproduction system we installed in the restaurants”, he explains, also pointing out that they created a solution as well so other clients would receive live results for each match in their displays. “It was a challenging project because we needed to consult so many people, because we had to have a log-in for access to the transmission, and we also needed a seamless connection, without interruptions”, says Burban.

TRENDS AND PROSPECTS FOR THE INDUSTRY IN 2019 Burban says he has identified “an important trend” in terms of facilities that allows self-service to improve user experience: “We’ve noticed kiosks a lot, it’s clear that increasingly UX and digital signage become integrated to create an experience beyond the service”. This implies two challenges: the integration of the solutions offered by the company and their client’s systems, which in turn leads to the creation of a relationship of trust, and also “becoming business partners and advisors to jointly measure the impact of what’s being transmitted on displays”, he clarifies. On the other hand, although 2018 was a year that presented economic challenges due to uncertainty generated by the electoral season, which caused some clients to stop their projects, Burban assures that for the company “it was very positive, with a growth of approximately 25%, compared to 2017”. And although challenges in the fiscal area will continue in 2019, with the establishment of a 13% VAT, “advertising in D.S. is still a lot cheaper than in traditional media, because investment is more effective since it’s easier to reach the appropriate public” for each advertisement.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

Colombia Andean Region

“NOW YOU CAN INTERACT WITH THE SCREEN WITH GESTURES OR BY VOICE, WHEN PREVIOUSLY YOU

Enmedio Colombia

COULD ONLY LOOK AT IT”.

Sebastián Obregón

CEO and Founder

After traveling to China looking for innovative business opportunities, Sebastián Obregón, together with his partners Daniel Peláez and Sebastián Molina, founded Enmedio in February 2006, becoming the pioneers of digital signage in the Colombian market. This administrator of companies of Eafit University, with an emphasis in Advertising and Marketing, expresses that since he was a student, he wanted to start his own company, and after having experience in imports from China, he decided to move to Shanghai for seven months with his two partners. “Our mission was to return from China with a business idea”, he recalls. That’s how they found a booth at a trade show that offered D.S. technology –which caught their attention–, bought their first thirty screens, and returned to Colombia to found Enmedio, which currently has a network of screens in six Colombian cities, as well as in Mexico, Brazil, Argentina, Chile and Peru.

For Obregón, his fascination with digital signage starts from “technology, having seen its evolution from the very basics. Now you can interact with the screen with gestures or by voice, when previously you could only look at it”, and remembers that the first screens he found in China “didn’t connect to the Internet, you had to insert a memory card with the content to be displayed”. He also expresses that his business is “disruptive” for the printing industry: “I find it amazing that print POP is still a thing”. And although digital signage began as “a costly business because of the need to purchase equipment –since previously we bought a 22-inch screen for the current price of a 65-inch one–, technology has developed, and little by little, companies have begun to join this digital transformation”, Obregón explains.

Enmedio

Two featured projects The Manager highlights two projects of special importance for his company: the first began in 2018 for the Corporate segment at the telecommunications company Tigo, where all the print posters and light boxes in the company’s Experience Centers, were replaced “by LED displays and touch screens in all formats –such as videowalls and totems– and all sizes”, also integrating the Internet of Things (IoT) in all cell phone exhibits, he explains.

TRENDS AND PROSPECTS FOR THE INDUSTRY IN 2019 For Obregón, “the trend of the moment is the ‘large format’. Digital signage on 40-inch screens no longer surprises anyone, everyone has one that size at home”, while covering “an entire wall in a store or office with an LED screen or videowall”, does. However, the price for carrying out projects of that size “is still a limitation”.

Furthermore, in the Retail segment with Grupo Éxito, owner of a supermarket chain with the same brand, Enmedio began another important project in 2015. “We installed over a thousand screens in forty stores in four cities” of Colombia, which include all technology and services offered by Enmedio, such as “facial recognition”, says Obregón, adding that one of the highlights of this project is that it’s “self-sustainable: advertisements of the different products found in the supermarkets pay for the channel itself”.

In this regard, he explains that one of the most complex situations in the Colombian economy is “the strong devaluation”, which is why digital signage has not yet been massified, adding that “the day it becomes cheaper to have a display in instead of a light box, the digital signage business will take off”. Specifically, for his company, the Manager notes that they are growing by 40% in sales on average, and “we want to reach 10,000 screens in the next five years, and we’re betting on the large format, so we no longer measure ourselves by number of displays, but in digital square meters”.

It should be noted that most of the screens used by Enmedio are their own brand, designed directly with Chinese distributors, “which is why they offer a better price than most commercial brands”.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

Argentina Southern Cone

“AT THIS MOMENT, WE’RE IN THE TRANSITION FROM THE ‘TRADITIONAL’ DIGITAL SIGNAGE SYSTEMS TO INTELLIGENT SYSTEMS”.

Convergencia Digital

Argentina

Luis María González CEO and Founder

Despite the difficult situation of the Argentine economy, Luis María González continues to promote his digital signage company, maintaining quality standards and relying on Streems’, their self-developed content platform, which allows Convergencia Digital to create “a lot of content at a lesser cost”. González is a technician in Sound and Music Production, with different studies in Finance, Commercial Management and Negotiation, all of which led him to venture into this industry. He mentions that “the combination of technical knowledge, business and marketing, together with aesthetic criteria, have brought me to digital signage”, accumulating 18 years of experience in the AV industry and founding Convergencia Digital in 2008.

For the entrepreneur, “the possibility of working on innovation and state-of-the-art technologies, anticipating the future and being a protagonist, being able to see our solutions in people’s day-today while using them actively in shopping centers or airports”, are his greatest motivations when working in the D.S. industry, added to the integration of technology and art, “both aspects that are not usually found together in many areas of life”, he adds.

Convergencia Digital Two featured projects

With a network of over 5,000 screens, Musimundo is one of the largest projects installed for the Retail segment in Latin America, which at the same time entails great challenges in connectivity because of the number of stores covered by the project, from the largest in shopping malls, to smaller regional stores. The main objective of this project, which began with a thousand screens between 2011 and 2012, was to replace all print POP with digital signage, including outdoor showcases, videowalls, LCD panels, promotional areas inside the store, and checkouts. “All types of content are transmitted, from branding to practical content for the store (such as instructions for requesting services), including movie trailers and music videos, as well as seasonal offers and campaigns, like Christmas”, González says, adding that this project has maintained a constant growth, reaching 2,500 screens in 2014, and “even more during Russia’s soccer World Cup, which boosted the stores technology sales”. This project, which was implemented with Intel architecture, Haivision Coolsign and the Streems platform, has a centralized service and eight regional nodes, which “we manage to make work with the high demand, although it’s still challenging when the branding changes, and stores move to new venues”, he explains.

TRENDS AND PROSPECTS FOR THE INDUSTRY IN 2019 For González, it’s well understood that Artificial Intelligence and IoT are the future of many technologies, and “at this moment, we’re in that transition, from the ‘traditional’ digital signage systems to intelligent systems”, and comments that he finds “curious” that this technology isn’t new, but the market “only now is beginning to follow that trend”. However, he advises that “balance is key, because new technologies, trends and innovative products constantly appear, but we can’t lose sight of the fact that projects and their amortization are conceived for the mid-term, so we must identify which of these innovations are temporary and which will hold in the long term”, an analysis that must be done carefully, because “other companies have opted for the wrong technology and have suffered, even disappeared from the market”. On the other hand, the difficult circumstances in Argentina since the end of 2018, including a devaluation of 125%, “have made this a poor year for the industry, especially since the digital signage projects have a high initial investment”, González explains, although his expectations for an improvement in the economy remain, because “we know that, in our region, the economy is cyclical, and our objective is to maintain and develop existing projects, bet on innovation and continue to grow”, he concludes.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

CHAPTER 5 50

ECONOMIC OUTLOOK OF LATIN AMERICA

2019 is seen as a period in which global economic uncertainties will be greater and coming from different fronts, affecting the growth of economic activity in Latin America. Some of the causes are the hardening of global financial conditions, and the fall in prices of raw materials generated by trade tensions between the United States and China by the end of 2018. On the other hand, the average of the GDP growth in the region was also affected by the conjunctures that occurred in the second half of the year in Argentina, Nicaragua and Venezuela, that decreased by -2.8%, -4.1% and -15% respectively, according to the estimates of the UN’s Economic Commission for Latin America and the Caribbean (ECLAC).

From its side, the International Monetary Fund (IMF) is more optimistic in its estimates, calculating that the region will grow from 1.1% in 2018 to 2% in 2019 and 2.5% in 2020, although in its “Perspectives Update of the World Economy, January 2019” report, it mentioned that this growth is 0.2% lower than expected in previous forecasts. These revisions are due to a possible “lower growth in Mexico in 2019 and 2020, caused by a decrease in private investment, and an even more severe contraction of what was expected in Venezuela. The cuts are only partially offset by an upward revision of the 2019 forecast for Brazil, where the gradual recovery is expected to continue after the 20152016 recession.”

This weakening of the world and regional economy made the agency calculate the average Latin American GDP for 2018 as 1.2%, and projected a growth of 1.7% in 2019.

1.7% WOULD BE THE LATIN AMERICAN GDP

GLOBAL TRADE GROWTH WILL SLOW TO 3.7% IN 2019, WHILE GLOBAL GDP GROWTH WILL FALL TO 2.9%, SAYS THE WTO.

GROWTH IN 2019, ACCORDING TO ECLAC.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

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

1.3%

1.9%

LATIN

MEXICO ,

ANDEAN

SOUTHERN

AMERICA

CENTRAL AMERICA

REGION

CONE

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, ECLAC estimates an average growth of 1.7% in the region during the first ten months of 2018. The Southern Cone was the sub-region that presented the greatest variation, due to the strong increase of 22.6 percentage points that Argentina presented in the second half of the year. In contrast, inflation in Central America and Mexico slowed during the first ten months of 2018, particularly in September and October, caused by the appreciation of currencies and a lower price in oil.

Venezuela continues with an overflowing growth in its CPI. By 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, projections indicate an increase 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 SOUTH AMERICA, EXCEPT VENEZUELA Consumer price index (CPI) variation percentage over 12 months, between October 2016 and October 2018. Source: ELAC

All of the above has added to the uncertainty through 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 investments in the future and undermine the growth prospects of the region”.

However, although global trade has been affected by the effects 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 exports until September of that year growing by 1.1% and imports with increases of 5.5% in South America.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

ECONOMIC OUTLOOK OF THE REGIONS IN LATIN AMERICA Next, we will approach this chapter by sub-regions analyzing individually the circumstances and economic prospects for each country.

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

Source: IADB and ECLAC

TRADE BALANCE 2018* Mexico

Costa Rica

Guatemala

Honduras

Nicaragua

Panama

Dominican Republic

-25,469,000

1,042,000

-7,988,000

-4,078,000

-1,618,000

792,000

-3,148,000

In US Dollars. *Estimate by ECLAC

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA â&#x20AC;¢ REPORT 2019

Mexico, Central America and The Caribbean Mexico The increase in trading with the United States, as well as the reconstruction activities that began after the natural disasters of 2017, meant that ECLAC estimated 2.2% GDP growth in 2018 was achieved. However, prospects continue to be affected by trade tensions due to the renegotiation of the Free Trade Agreement with the United States. By 2019, the agency expects an increase in GDP of 2.1%, associated with greater public and private investment, and increased consumption. For its part, the IMF revised down the growth projections for 2019 and 2020 to 2.1% and 2.2%, respectively, due to the lower growth momentum in 2018.

MEXICO: GDP AND INFLATION, 2016-2018 4

The renegotiation of NAFTA, now called USMCA, although it included improvements to the rules of origin and addresses issues with SMEs, elimination of technical barriers to trade, customs facilitation, electronic commerce, among others, possible delays in ratification and implementation under the treaty, are some of the risks that would slow down GDP growth in 2019. Regarding trade dynamics, imports of consumer goods from January to October 2018, rose by 12.9%, while specifically imports of equipment related to the Digital Signage industry reached USD 1,736 million FOB (Free on Board) to November 2018, originating mainly from China (50.8%), the United States (27.7%) and Germany (3%), according to data from the National Institute of Statistics and Geography (INEGI).

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT MEXICO 7 6

5 4

2 3 2

1 0

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

2017

2018

50.8% CHINA

2.9% JAPAN

23.7% USA

2.9% VIETNAM

3.0% GERMANY

16.7% 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 - Inegi

Costa Rica The Costa Rican economy would have decreased in 2018 due to the increase in interest rates and the lower confidence of consumers and companies, with an expansion of 3% compared to 3.3% in 2017, according to ECLAC. For its part, the IMF estimates that the slowdown was also due to the prolonged electoral season, which required a second round. A year ago, this agency estimated that the country’s production would rebound by 3.8% in 2018. The aforementioned is confirmed in the report “Evolution of the Monthly Index of Economic Activity, January 2019” what the Central Bank of Costa Rica revealed in March, which indicates that, with the exception of the construction sector, “all economic activities had a lower dynamism compared to January 2018, and particularly agricultural and trade showed negative variations”. However, the report points out that the service sector was the one with the smallest decrease, with an average increase of 2.7%.

COSTA RICA: GDP AND INFLATION, 2016-2018 5

For 2019, ECLAC estimates a GDP expansion of 2.9%, while the IMF is more optimistic projecting 3.3%, a boost that would come from the external sector, since domestic demand will continue to show moderate dynamism. In terms of trade policy, the new government has expressed its intention to manage existing treaties and not negotiate new agreements. In this sense, imports of goods grew by 5.5% in the first ten months of the year. Specifically, imports of equipment for Digital Signage between January and September 2018 reached USD 63,640,000 CIF (Cost, Insurance and Freight), according to information from the National Customs Service, with the main origins being China (55%), Mexico (33.3%) and the United States (9.3%).

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT COSTA RICA

11 10 9

8 7 6

5 4

3 2 1

0 -1

-2

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

2017

2018

55.0% CHINA

0.6% PANAMA

33.3% MEXICO

0.3% ITALY

9.3% USA

1.4% 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 SEPTEMBER 2018 Source: Descartes Datamyne - National Customs Service

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

57 57

Guatemala ECLAC estimates that Guatemala’s GDP will grow by 2.9% in 2018, a figure slightly higher than that observed in 2017 (2.8%), driven mainly by private consumption, and a 3% growth in 2019 is projected. In turn, the IMF estimates an expansion of 2.8% in 2018 and 3.4% in 2019. Similar to Costa Rica, growth slowed through a decrease in business confidence, added to the impact of interregional trade caused by the political turmoil in Nicaragua, according to the IMF in its report “Economic perspectives: Americas, an uneven recovery”, published in October 2018.

In this sense, the increase in imports of goods was 8.9% as a result of the increase in external purchases of intermediate goods. During 2017, imports of equipment for Digital Signage reached USD 13,264,000 according to information from the Central Bank of Guatemala and the International Trade Centre (ITC), with the main origins being Mexico (43.2%), the United States (33.5%) and China (10.9%).

Despite the above, ECLAC reported that economic activity was dynamic in the first half of the year, and highlights the favorable behavior in the investment of imported goods destined for industry, telecommunications and construction.

GUATEMALA: GDP AND INFLATION, 2016-2018

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT GUATEMALA

6 6 5 5 4

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.

Source: ECLAC, based on official data

43.2% MEXICO

9.3% PANAMA

33.5% USA

1.7% HONG KONG

10.9% CHINA

1.4% 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 major slowdown in its economy, and in 2018, it would grow only by 3.7%, compared to 4.8% in 2017, according to ECLAC. This stagnation can be attributed to the reduction in the flow of remittances, as well as a decrease in the year’s exports value, due to a 15.7% decrease in the price of coffee, Honduras’ main export product. Added to this, the political turmoil in Nicaragua during the year affected the impact of international trade, since the interruption of land transport increased the logistics costs of imports and exports. Both ECLAC and the IMF agree that GDP will hold a growth of 3.6% in 2019, thanks to the continued expansion of the United States, the country’s main trading partner, and the decrease in fuel prices.

HONDURAS: GDP AND INFLATION, 2016-2018 6

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

2017

2018

Regarding trade policy, the FTA between Central America and Korea is in the process of approval by the National Congress, and the country signed the Administrative Cooperation Agreement on Customs Matters with Ecuador, in order to contribute to the negotiation of a Partial Scope Agreement and Economic Complementation between both countries. International trade during the first seven months of 2018 decreased by 2.9% in the value of exports and increased 9.9% in the value of imports. It should be noted that imports of equipment for Digital Signage during 2018 reached USD 80,824,000 CIF and the main origins were Mexico (65.6%), China (27.6%) and the United States (3.9%), according to data from the General Directorate of Control of Customs Franchises.

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT HONDURAS

65.6% MEXICO

1.9% INDONESIA

27.6% CHINA

0.4% SOUTH KOREA

3.9% USA

0.8% OTHERS

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

Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne – General Directorate of Control of Customs.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

59 59

Panama ECLAC estimates a 4.2% growth in the Panamanian economy in 2018, and although it remains among the most dynamic countries in Latin America, the increase was lower than expected due to a slowdown in activity in different sectors such as trade, tourism and hotels. Added to this was a prolonged strike of workers in the construction industry, a situation that contrasts with the projection of the previous year that considered this sector as “one of the most dynamic” for this economy. The organism expects a growth of 5.6% in 2019 after a rebound in the construction sector, driven by investment in various infrastructure projects. In turn, the IMF is more optimistic in its calculations, estimating a growth of 4.6% for 2018 and 6.8% in 2019.

PANAMA: GDP AND INFLATION, 2016-2018

The sectors that remained dynamic throughout the year were transport, storage and communications, due to an increase of 10.3% in the operations of the Panama Canal. Accordingly, a variation of 10.3% in exports was observed due to the higher re-exports of the Colon Free Trade Zone (10.3%) and to an increase in goods purchased in ports (31.4%). The 8.2% growth in imports is because of an increase in the purchase of goods for local use, as well as those acquired in ports and in the free trade zone. Specifically, imports of products from the Digital Signage sector in 2018 reached USD 66,394,000 FOB, which entered the country mainly from Mexico (36.9%), China (12.5%), and the United States (5.4%), while 43.8% was reported in entry from the Colon Free Trade Zone and local ports, according to data from the National Customs Authority.

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT PANAMA 4

5 4

3 1 2 0

1 0

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

2017

2018

37.0% FREE TRADE ZONE*

6.8% PANAMA**

36.9% MEXICO

5.4% USA

12.5% CHINA

1.4% OTHERS

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

*Colon Free Trade Zone **According to information reported in Datamyne.

BY DECEMBER 2018 Source: ECLAC, based on official data

Source: Descartes Datamyne – National Customs Authority

Dominican Republic The IMF expects a rebound in economic activity between 2019 and 2020, albeit at a slower pace than previously anticipated, a slowdown that’s coming since early 2018 because of worsening terms of trade and a moderation of domestic demand. The agency estimates a growth of 6.4% in 2018, placing the island among the fastest growing countries in Latin America, and projects a growth of 5.0% in 2019. In turn, ECLAC has more optimistic estimates, projecting an increase in GDP of 5.7% by 2019. By the end of the third quarter, the most dynamic sectors were construction and free trade zones. The services sector, the most important in the Dominican economy, grew by 5.7%. The United States will continue to be a key factor in the performance of this sector and in the flow of remittances.

Specifically, imports of products for the Digital Signage sector in 2017, according to the latest data from the International Trade Center (ITC), reached USD 85,622,000, with 56.9% coming from China, Mexico (31.2%) and the United States (9.1%).

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT DOMINICAN REPUBLIC

DOMINICAN REPUBLIC: GDP AND INFLATION, 2016-2018 9

On the trade front, imports of capital goods increased at a faster rate (16%) than consumer goods (7.4%) between January and June 2018, all the while total exports increased by 8.4% in the same period, driven by the demand originated in the United States, as well as by the moderate depreciation of the Dominican peso.

7 6

4 3

2 1

1 0

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

2017

2018

56.9% CHINA

0.9% SOUTH KOREA

31.2% MEXICO

0.6% CANADA

9.1% USA

1.4% 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). TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

61 61

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

TRADE BALANCE 2018*

Bolivia -1,517,000 Colombia -7,892,000 Ecuador -170,000 Peru 5,100,000

Brazil 20,369,000 Argentina -9,624,000 Chile 2,846,000 Paraguay 847,000 Uruguay 2,716,000

In US dollars *Estimate by ECLAC

Source: IADB and ECLAC

Región Andina Colombia The Colombian economic recovery continues to be driven by the rise in oil prices since 2017 and, increasingly, by a stronger private investment that is also encouraged by the dissipation of political uncertainty, following the election of President Iván Duque. Thus, the IMF estimates that Colombia’s economic growth will increase to 2.8% by 2018 and projected 3.6% by 2019, driven by the positive impact of changes in tax policy in terms of investment. For its part, ECLAC mentions that economic activity has shown signs of recovery, with annual growth rates that were not recorded since 2015, and estimates a growth of 3.3% of GDP in 2019. Household consumption and public consumption were the engines of economic dynamism.

COLOMBIA: GDP AND INFLATION, 2016-2018 4

However, despite this positive economic performance, the Colombian peso continues to devalue against the US dollar (along with the Argentine peso and without considering the Venezuelan bolivar), reduced by almost 400 pesos (a -13.3% depreciation) between January 2015 and September 2018, according to the Latin American Federation of Banks (Felaban) records. ECLAC also notes that imports of goods and services increased by 7% due to higher domestic demand, and exports also grew, but at a slower pace. Regarding imports of equipment for Digital Signage, as of December 2018, they were USD 653,100,000 FOB, with 85.8% originating from Mexico, China with 11.7% and the United States with 0.7%, according to the Directorate of Taxes and National Customs (DIAN).

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT COLOMBIA

12 10

3 8

6 4

1 2

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

2017

2018

85.8% MEXICO

0.5% SOUTH KOREA

11.7% CHINA

0.2% HONG KONG

0.7% USA

1.1% 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 – DIAN

Ecuador Despite the recovery registered in economic activity in Ecuador in 2017, this momentum seems to be slowing, and in 2018 there would only be a 1% growth in GDP, in contrast to the 2.4% recorded in 2017 by ECLAC. The IMF coincides and projects an even greater deceleration for 2019, with only a 0.7% increase. Fiscal consolidation, more limited access to international capital markets and a moderate contraction of oil production are the main winds against economic growth, according to both agencies.

ECUADOR: GDP AND INFLATION, 2016-2018 6

The consumer price index is also affected by this slow economic dynamic, because although the deflationary trend of the last three years was reversed, the accumulated inflation between January and October is only 0.42%. In the commercial area, the most dynamic imports were those of oil derivatives and consumer goods, which grew by 36% and 18.4%, respectively. On the other hand, equipment for Digital Signage as of December 2018 reached USD 260,350,000 CIF. The main origins are China (37.3%), Panama (16.8%) and North Korea (16.5%).

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT ECUADOR 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. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

37.3% CHINA

10.4% USA

16.8% PANAMA

6.2% MEXICO

16.5% NORTH KOREA

4.2% NOT DECLARED*

BY DECEMBER 2018

8.6% OTHERS

*Origin country was not informed to Ecuador’s customs autority. Source: Descartes Datamyne - National Customs Service

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

Peru Despite the corruption scandals in 2018 and the consequences of the El Niño phenomenon in 2017, the Peruvian economy continues to grow, reaching 3.8% in 2018 and would increase 3.6% in 2019, driven by the consolidation of private consumption and mining investment, according to ECLAC projections. For their part, both the IMF and the Peruvian Institute of Economics (IPE) coincide with the estimates of the aforementioned agency and projects an expansion of 4% in 2019, ranking among the leaders of economic growth in the region, only behind Bolivia (4.2%).

However, both imports and imports slowed down due to the decline in mining production. Even so, imports of equipment for Digital Signage reached USD 583,700,000 FOB during 2018, originating mainly from Mexico with 62.4%, China (34.3%) and Indonesia (0.6%), according to data from the National Superintendency of Customs and Tax Administration (SUNAT).

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT PERU

PERU: GDP AND INFLATION, 2016-2018 6

According to the manager of the IPE, Diego Macera, the Peruvian GDP will be driven by private investment that would register an expansion of 6.9%, added to a greater dynamism for the realization of the PanAmerican Games taking place in Lima in July 2019.

4 6

2 2

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

2017

2018

62.4% MEXICO

0.6% USA

34.3% CHINA

0.5% SOUTH KOREA

0.6% INDONESIA

1.5% 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 the Venezuelan economy continues and none of the international economic organizations has encouraging expectations. The IMF estimates a drop of -18% of real GDP in Venezuela, which would add up to a contraction of about -45% since 2013, the last year in which this figure recorded any growth. For its part, ECLAC points out that the GDP reduction would be around -15%, and “if the severe external constraint faced by the country continues, a further fall in GDP (-10%), a growing hyperinflation and a significant depreciation of the currency”, added to the massive emigration of Venezuelan citizens to other countries “is to be expected”. The evolution of political events with the selfdeclaration of Juan Guaidó as interim president in January of this year adds another level of uncertainty to the country’s prospects.

As monetary financing of the huge fiscal deficits is expected to go on, and currency demand continues to plummet, inflation will accelerate even further and would reach 10 million percent, according to IMF estimates. On the other hand, although the increase in oil prices has allowed exports to grow 9%, imports have fallen by 26%, affecting all industries, including Digital Signage, and by November 2018 they only reached USD 3,636,000 FOB. As a side note, the IMF points out that projecting Venezuela’s economic prospects is complicated because there are no talks with the authorities (the last consultation happened in 2004), the data is received between long intervals and the information is incomplete, making the indicators difficult to analyze.

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT VENEZUELA

64.6% CHINA

3.7% HONG KONG

15.4% MEXICO

2.4% SPAIN

8.5% USA

5.4% OTHERS

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

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

67 67

Brazil and Southern Cone Brazil The recovery of private demand will be the main driver of the Brazilian economy between 2018 and 2019, with a GDP growth of 1.4% and 2.4% respectively, according to IMF calculations, exceeding the barrier of 2% for the first time since 2013. The Bolsonaro government’s market-friendly reform program helped boost business confidence and improve short-term growth prospects. However, the IMF revised downward the forecast for 2018 as a result of the disruptions caused by the truck drivers national strike and the tightening of financial conditions, and it’s still foreseen that growth will hold by 2.2% in the medium term. It’s important to point out that implementation of the economic policy presented setbacks because of uncertainty due to the political fragility that the present administration suffered at the beginning of its period.

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

Thus, imports of equipment for Digital Signage up to December 2018 reached USD 131,544,000, originating mainly from China (60.7%), South Korea (10.1%) and the United States (6.8%).

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT BRAZIL

BRAZIL: GDP AND INFLATION, 2016-2018 4

Regarding international trade, despite the fact that imports increased to 21.8% in 2018 according to data from ECLAC, the Brazilian economy is still considered to be very closed, and one of the government’s objectives is to “open up the country to international trade”, as published in the IMF blog Diálogo a Fondo, noting further that “Brazil’s trade flows (exports plus imports) average a minimum of 25% of the national GDP, meaning that it’s one of the least open of the G20”.

2018

60.7% CHINA

2.6% JAPAN

10.1% SOUTH KOREA

2.6% TAIWAN

6.8% USA

17.1% 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 – Aladi

Argentina Despite the positive performance of the economy in 2017, with a growth of 2.9%, in the second half of 2018, activity contracted and ECLAC estimates that GDP would fall by -2.6%, and by 2019, both this body and the IMF project a decrease between -1.6% and -1.8%. Different circumstances caused this instability in the southern country, including the currency exchange crisis of the second and third quarter of 2018, that presented in a sharp devaluation of the peso, a sharp increase in the interest rate, the acceleration of inflation and an important drop in families’ real income. Because of this situation, the Argentine peso along with the Colombian peso would be the most devalued currencies in Latin America (except for the Venezuelan bolivar), losing 32 pesos between March 2015 and September 2018, according to Felaban records, and reaching a depreciation of 50.6% in

ARGENTINA: GDP AND INFLATION, 2016-2018

January 2019, according to the Argentine journal Infobae. However, despite the present difficulties, the IMF is optimistic considering that “inflation and inflation expectations are in a downward trend since October, and everything indicates that they would continue to decline slowly in 2019” allowing a recovery in economic activity starting on the second quarter of the year. The acceleration of inflation, which reached a yearly 31.2% increase, also had a negative effect on imports, which fell -2.4%, and exports, to a lesser extent (-0.2%). The latest figures for imports of equipment for Digital Signage are until June 2017, which already reveal a low level of trade in this type of merchandise, reaching USD 16,518,000 FOB that arrived from China (51.7%), Mexico (26.3%) and South Korea (7.7%), according to data from the General Directorate of Customs.

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT ARGENTINA

6 6 5 5 4

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

51.7% CHINA

3.9% ISRAEL

26.3% MEXICO

3.3% USA

7.7% SOUTH KOREA

7.1% OTHERS

BY JUNE 2017 * Most recent information reported by official data. Source: Descartes Datamyne – General Directorate of Customs.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

Chile The Chilean economy more than doubled its growth in 2018, reaching 3.9%, and will maintain this level of increase between 2019 and 2020, according to ECLAC and IMF projections, thanks to the strengthening of private consumption and investment dynamism, along with the implementation of the structural reform program of the authorities, which would result in “more favorable growth prospects”. However, although GDP growth was marked by domestic demand and investment, consumption slowed from the second quarter of 2018 partly caused by a higher level of unemployment and a pushed up inflation (2.9%) caused by the depreciation of the Chilean peso against the US dollar. ECLAC forecast that this behavior will continue during 2019.

1 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

On the other hand, imports of equipment for the Digital Signage industry in 2018 reached USD 547,945,000 CIF, mainly from South Korea (59.8%), Hong Kong (20.5%) and the United States (7.6%), according to data from the National Customs Service.

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT CHILE

CHILE: GDP AND INFLATION, 2016-2018

-1

Regarding commercial dynamics, in 2018 there was a reduction 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 overcompensated the growth of exports of goods and services (13% and 10% in 2017 and 2018).

59.8% SOUTH KOREA

4.9% CHINA

20.5% HONG KONG

1.5% TRADE ZONE*

7.6% USA

5.8% OTHERS

*Trade Zone of Iquique

BY DECEMBER 2018 Source: Descartes Datamyne – National Customs Service

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

The Monetary Policy Committee established a contractive policy during 2018, which was effective to partially contain the inflationary pressures generated by the currency depreciation, so that the inflation rate would be around 8% and 9%, very close to the range goal of 7%. However, the devaluation of the peso against the US currency is expected to continue in the following months.

For its part, the IMF agrees that the worsening outlook for Argentina and Brazil, coupled with the severe drought that affected Uruguay and Argentina, and the depreciation of the Uruguayan peso, led to a growth of only 2% in 2018, although the organism is much more optimistic for 2019, projecting a rise of 3.2%.

In terms of trade dynamics, although exports are experiencing a slowdown, imports of goods and services will have had a moderate rise, so that the trade balance of the current account will be slightly negative. Specifically, imports of equipment for Digital Signage in 2018 reached USD 65,793,000 CIF, mainly from China (62.4%), followed by Mexico (31.3%) and Hong Kong (2.9%), according to data of the General Directorate of Customs.

To be highlighted is the favorable behavior of retail commerce, restaurants and the hotel sector, which have been the main drivers of growth during the year.

URUGUAY: GDP AND INFLATION, 2016-2018 5

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT URUGUAY 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

62.4% CHINA

2.5% USA

31.3% MEXICO

0.2% SOUTH KOREA

2.9% HONG KONG

0.7% OTHERS

BY DECEMBER 2018 Source: Descartes Datamyne – General Directorate of Customs

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

71 71

ANNUAL GDP GROWTH %

2018* 2017 2016

MEXICO AND CENTRAL AMERICA

WORLD

-4

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 REPUBLIC

5.7 6.3 4.6

PANAMA

5.6 4.2 5.3

-3

-2

-1

*Projection. Source: ECLAC.

ANDEAN REGION 3.5 2.7 2.7

WORLD 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 3.6 3.8 2.5

PERU

-10 -15 -13

VENEZUELA

-20

-15

-10

-5

3 4

BRAZIL AND 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 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA â&#x20AC;¢ REPORT 2019

Cited sources: Cited sources: 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. 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), Santiago, 2019. Inter-American Development Bank (IADB), Estimates of trade trends in Latin America and the Caribbean, 2019 edition. International Monetary Fund (IMF), World Economic Outlook, January 2018 update, Washington, DC, January 21, 2019. International Monetary Fund (IMF), Regional Economic Outlook. Western Hemisphere: an uneven recovery, October 2018. Central Bank of Costa Rica, “Evolution of the Monthly Index of Economic Activity (IMAE, in Spanish), January 2019”, Press Release, March 18, 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. • Guatemala: Central Bank of Guatemala.

Descartes Datamyne (www.datamyne.com). With information from official sources:

• Argentina: General Directorate of Customs. • Chile: National Customs Service. • Colombia: National Directorate of Taxes and Customs (DIAN). • Costa Rica: National Customs Service. • Brazil: Latin American Integration Association (ALADI).

• 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

Descripción

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

8521

Video recording or reproducing apparatus.

8521.90

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

8521.90.10.10

(Argentina) Recorder-player and editor of image and sound, on disk, by magnetic, optical or optomagnetic media; For professional use.

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.

8528.52.12

(Costa Rica) The types used exclusively to be connected to an automatic data processing or processing machine of heading 84.71.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019

HS-Code

Descripciรณn

8528.51

(Mexico and Panama) The type used exclusively or principally with an automatic data processing system of heading 84.71.

8528.59

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

8528.59

(Chile) Suitable to be directly connected and designed to be used with an automatic machine for data processing of heading no. 8471; Others.

8528.72

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

8528.72.01

(Mexico) With screen less than or equal to 35.56 cm (14 inches), except for high definition, projection type and those of subheading 8528.72.06.

8528.72.02

(Mexico) With screen larger than 35,56 cm (14 inches), except those of high definition, projection type and those of subheading 8528.72.06.

8528.72.03

(Mexico) Projection type by cathode ray tubes, except high definition type.

8528.72.04

(Mexico) High definition by cathode ray tube, except projection type.

8528.72.05

(Mexico) High definition projection type by cathode ray tube.

8528.72.99

(Mexico) Reception apparatus for television, including a receiver apparatus for broadcasting or recording or reproduction of sound or a built-in image; Others.

8529

Transmission apparatus; parts suitable for use solely or principally with the apparatus of heading no. 8525 to 8528.

8529.90

Reception and transmission apparatus; for use with apparatus of heading no. 8525 to 8528, excluding aerials and aerial reflectors.

8529.90.90.10

(Colombia) Panels with LED or LCD or plasma technologies.

8529.90.90.00.10

(Costa Rica) Parts for machines and apparatus of subheadings 8525.50.90.10, 8525.60.00.00, 8525.80.20.11, 8525.80.20.19, 8525.80.20.91, 8525.80.20.99 y 8527.99.90.00.

HS-Code

Descripción

8543

Electrical machines and apparatus; having individual functions, not specified or included elsewhere in this chapter.

8543.70

Electrical machines and apparatus; having individual functions, not specified or included elsewhere in this chapter, n.e.c. in heading no. 8543.

8543.70.95

Touch-sensitive data input devices (so-called "touch screens") without display capabilities, for incorporation into apparatus having a display, which function by detecting the presence and location of a touch within the display area (such sensing may be obtained by means of resistance, electrostatic capacity, acoustic pulse recognition, infra-red lights or other touch-sensitive technology).

* For the imports charts and graphs by company of Chapter 1, this report only considered the Harmonized System Codes of products related to the Digital Signage industry (displays, screens and transmission devices) for transactions carried out until December 2018.

Technical Sheet “TOP BRANDS IN LATIN AMERICA” survey Dates of data collection: January 16 to February 22, 2019. Data collection technique: Online survey on Encuestadatos.com platform. Methodology: ten multiple-choice questions. Topics to which it refers: Selection of one or more of the most used equipment brands and software, and most common types of solutions in Digital Signage. Target group: Exclusively the companies of the Top 50 Latin American Digital Signage Companies 2019. Survey developed by Latin Press, Inc.

TOP 50 DIGITAL SIGNAGE COMPANIES IN LATIN AMERICA • REPORT 2019