1. Inbound Mexico

2. Mexico Market overview Mexico has a population of 122.3 million inhabitants 30.5 million buy online Online sales amounted to a value worth $9.5 billion in 2013 of which 50% for goods The annual average online spend $1133 At the end of 2013 there were 12.3 million e-households and the average expenditure was $771 per e-household The top 3 categories 1 2 3 Media products Consumer Electronics Consumer Appliances The top 3 countries they buy from 1 2 3 US Argentina Brazil/ Germany “50% of Mexican consumers shop from overseas websites”

3. Highlights of our delivery service to MX Delivery via a network of trusted local partners Different injection points into Laredo (LRD) DDU & DDP service available, clearance* into MX via our partner in Mexico 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 3 delivery attempts/ notification of attempt Covering MX in average between 6-13 days from US, EU, Asia, AU Final mile delivery in MX from 4-8 business days Maximum weight : 154 lbs (70kg) and parcel size: 31 inch x 31 inch x 31 inch (79cm x 79cm x 79cm) * More information on thresholds can be found in the Tax map

4. Special requirements for customs clearance into MX ! Additional information which is requested, by our local partner, to perform customs clearance and delivery into Mexico The Tax ID-number of the buyer must be provided for clearance if the value is over $300 Highly recommended to include all the contact details of the shopper: phone number (preferable the mobile number) and email 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 Mexico 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 email. 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/email 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.

5. Operational flow to deliver into MX 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 MX Day 1 3 We airlift/truck parcels into Laredo (via LAX/IAD*) and perform customs clearance through our partner in MX US: 1-2 days EU: 2-3 days Asia: 2-4 days AU: 2-4 days 4 Parcels are injected into our MX partner networks for delivery within MX* 3-6 days * LAX: Los Angeles – IAD: Washington -Sterling facility

6. Transit times for shipping to MX via Laredo (LRX) *start from LG facility – 1 extra day for handling 2 - 4 day 3 - 5 days 4 - 5 days Final Mile MX Delivery Transport to MX* From US:1 - 2 days From EU: 2 - 3 days From Asia: 2 - 4 days From AU: 2 - 4 days E2E transit times to MX From US: 6 - 11 days From EU: 7- 12 days From Asia: 7 - 13 days From AU: 7 - 13 days Mexico City Major Cities Rest of country ** 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 Mexico City Laredo (LRX – US) Injection via US (LRX/IAD)