Inbound Brazil

Brazil Market overview Brazil has a population of 202 million inhabitants 32.9 million buy online Online sales amounted to a value worth $23.5 billion in 2013 and are expected to reach $25.5 billion by 2017 The annual average online spend $714 The average order value is $147 The top 3 categories Clothing & Accessories Health & Beauty products Consumer Electronics The top 3 countries they buy from US China HK “41% shops cross-border and this is predicted to grow to 84%”

Highlights of our delivery service to BR Delivery via a network of trusted local partners Different injection points into Rio De Janeiro DDU & DDP service available, clearance into BR via our partner in Brazil* Full tracking from origin including pickup, customs clearance and end-delivery Delivery service at home with proof of delivery (signature with date & time - at surcharge copy of the signature) with 2 delivery attempts Covering BR in average between days from US, EU, Asia, AU for main cities & large populated areas Final mile delivery in BR from 3-9 business days (for the main areas excl. Northwest States & beyond) Maximum weight : 77 lbs (35kg) and parcel size**: length is maximum 59 inch (150cm) * More information on thresholds can be found in the Tax map.

Special requirements for customs clearance into BR ! Additional information which is requested, by our local partner, to perform customs clearance and delivery into Brazil The Tax ID-number of the buyer must be provided for clearance Highly recommended to include all the contact details of the shopper: phone number (preferable the mobile number) and address, so the addressee can be reached e.g.; to verify the Tax ID,… = > Please verify with your customer if all this information of the shopper can be provided since some clients have specific privacy regulations. Specifics on the process of how customs clearance will be done via our partner in Brazil DDP/DDU Our partner will initiate the communication with the addressee of the item to attempt to collect the duties/taxes owed on the goods The first request will be done electronically via an . A subsequent attempt may include a phone call Once the amount due has been collected by the partner, the packages will be sent to destination. The packages will remain on US soil until duties/taxes are collected. If the duties and taxes cannot collected, the packages will not be shipped to destination country. In case Tax ID is missing, the partner will contact the shopper by sms/phone/ to obtain required info (can lead to delays in customs clearance) For DDP: The idea would be that the seller will collect the duties/taxes at check out. LG invoices the seller for those D&T that our partner will pass on to us for payment.

Operational flow to deliver into BR StepDescriptionTransit 1Buyer places order onlineDay 0 2 We pick up parcels in your facility or you drop at our facility. We consolidate and prepare for delivery to BR Day 1 3 Airlift parcels into Rio De Janeiro (from MIA*) and perform customs clearance through our partner in BR US: 1-4 days EU: 2 –4 days Asia: 2-4 days AU: 3-4 days 4 Parcels are injected into our BR partner networks for delivery within BR* 3-9 days * MIA: Miami

Transit times for shipping to BR via Rio De Janeiro *start from LG facility – 1 extra day for handling São Paulo Rio De Janeiro Zone AreaCitiesTransit Average by Zone A RIO DE JANEIRO & SAO PAULO · Rio De Janeiro 3-4 business days · Sao Paulo B ALL SOUTHERN STATES · Rio Grande do Sur 4-7 business days · Espiritu Santo · Santa Catarina · Parana · Minhas Gerais · Goias C NORTHEAST STATES · Alagoas 6-9 business days · Bahia · Ceara · Sergipe · Pernambuco · Tocantins · Paraiba · Piaui · Rio Grande do Norte D NORTHWEST STATES & BEYOND · Maranhao business days · Para · Amazonas · Roraima · Amapa · Rondonia · Acre · Beyond Points 3-4 days 4 -7 days 6-9 days Final Mile BR Delivery Transport to BR* From US**:1-4 days From EU: 2 -4 days From Asia: 2-4 days From AU: 3-4 days E2E transit times to BR (main areas) From US: 5-14 days From EU: 6-14 days From Asia: 6-14 days From AU: 7-14days days Injection via US (MIA) ** US volumes will be consolidated in one of the LG hubs at LAX, CMH, IAD, ORD, or LAS. Transit times from our hub to injection MIA: 1-3 days