Growing your business in Brazil & Chile Carlos A Hernandez VP Sales, Latin America

Sandvine Confidential Sandvine Overview Global leader in network policy control solutions for fixed and mobile converging operators Solutions selected by more than 200 service providers worldwide Headquartered in Waterloo, Canada with 350+ employees worldwide Founded in 2001 - listed Toronto TSX & London AIM Sandvine Confidential

Growing our Global Customer Base Over 220 customers, in more than 86 countries, representing over 100m fixed and 200m mobile subscribers Sandvine Confidential

Benefits of exporting (Deloitte 2014)* Exposure to new growth opportunities, global best practices, and diverse competition challenges exporters to excel. Exporters grow faster, are more productive, and achieve better market performance than their domestic counterparts. More surprising, is that exporting can actually reduce a company’s risk of failure: Geographic diversification balances risk, calms volatility and improves a company’s ability to withstand the ups and downs of business cycles. Although exporting can open up new risks and challenges, companies that do so stay in business longer. * http://www.deloitte.com/view/en_CA/ca/insights/insights-and-issues/the-future-of-productivity-2014/index.htm

Why Latin America (What is LATAM?) 600M people 5.16 Trillion USD GDP High-growth rate Competitive markets Diverse cultures Sandvine Confidential

Sandvine Confidential Brazil and Chile Similarities: Cultures of innovation Competitive economies Solid and stable markets Differences: Cultures and languages Brazil is much larger but more complex Chile is smaller but has high transparency, efficiency and simplicity to do business …Both are very attractive markets and fantastic places to do business each with their own opportunities and challenges… Sandvine Confidential

Common Challenges Where to start? The culture The language (Portuguese, Spanish) Work through a partner (agent, reseller), hire local, go yourself? Commitment Consolidated industries: Decision process & location The key is to understand and embrace the culture. It is not like doing business in Canada, US

Where to start? Traditional drivers (Why?) Market size Product needs (market or regulatory drivers) Practical drivers (Why, How?) Ownership (thus where decisions are made) Target market’s competitive environment (your customers & yours) Deal Mechanics: Don’t wait to the very last minute! Who buys & takes risk (your partner, the customer, you)? Trade conditions (barriers, agreements, taxes, payment restrictions, political)

First steps Get familiar on how to do business there, be open to learn - make sure to talk about it! You have help and tools, make sure to use them Attend tradeshows relevant to the selected markets Call / Visit customers and measure interest Meet the right level of executives to get the right picture Segment and time your markets: Small vs large (sales cycle varies significantly) Look for the innovators, the threatened by the dominant players Find a friendly independent: Willing to take the risk and to be “referentiable” for a good deal Will allow you to learn from some mistakes Will help you learn and understand local needs

There is help available Government resources are your best way to get familiar with the market, find potential channels, partners, and customers Understand if the market makes sense for your company Missions and Trade Shows: visit the country, meet relevant companies and executives Diaspora How many Brazilians and Chileans are in KW? …Make sure you have a plan & rationale…

Purchasing process in LATAM Business Need Internal request Solution Budget & Approvals Tender process Ability to influence Higher Lower Ability to reach multiple stakeholders Progress in time Slide 17 (of 68)

Purchasing Drivers in LATAM They are doing the right thing for the company Find best value Minimize risk (company they trust or a sales person they know) What is the right process? Isolated from external influences? The “cheap” vs “best” dilemma And achieving their goals They want to get their bonus Planning – Select technology that enables business growth Purchasing – Get the lowest possible price They want career progression They don’t want to look bad or lose their jobs The basis of growing your business is aligning your customers needs, with your company’s, and those of the people involved in the decision process… Slide 17 (of 68)

A checklist Do you have a plan? Are you committed? Do you understand the culture? Working days Protocol Decision making process Role of distributors Importation process, customs, certifications, taxes Do you know your customer (the actual people)? Do you understand why and how they buy? Timing (elections, regulations, budgeting, holidays… Olympic games, Soccer World Cup)

Thank you Questions?