LATAM 2020Unveiling the true potential of Latin America’s Internet & Mobile Market

HOW 2020 WILL LOOK AND WHY NOW IS THE RIGHT TIME TO INVEST

This presentation was made to share our research and experience on Latin America. Comments, questions and corrections are always welcome

Rodrigo Teijeiro Founder & CEO

rodrigo@recargapay.com

Gustavo Victorica Co-founder & COO

gustavo@recargapay.com

Mayra Mange Junior Finance & Operations Analyst

mayra.mange@recargapay.com

More info on http://recargapay.com/about

Airtime and bill payments for the mobile generation, serving over 1 million customers today

AND IT IS WELL DESERVED…

Source: The Economist: February 2015 | Time: May 2015 Complete list of Unicorns https://www.cbinsights.com/research-unicorn-companies

Flipkart

Mu Sigma

Olacabs

PayTM

Quikr

Snapdeal

Zomato Media

$15

$1.5

$2.4

$2

$1

$2.5

$1

Accel Partners, DST

Sequoia, General Atlantic

Accel Partners, Matrix Partners, Sequoia

Intel Capital, Alibaba Group

Tiger Global

Intel Capital

Sequoia

3rd after US and China in # of Unicorns

INDIA IS GETTING A LOT OF ATTENTION RECENTLY

Company Valuation ($B) Select Investors

AND BY 2020 GDP LATAM > 1.8 x GDP INDIA

Source: IMF

GDP Latam=$6,694 M GDP India=$3,640 M

2015 2016 2017 2018 2019 2020

3,6403,312

3,0132,7562,5112,308

6,6946,336

5,9895,647

5,3645,167

Latin AmericaIndia

GDP in billion USD

vs

INDIA IS HOT, BUT LATAM IS STILL AHEAD

BY 2020…LATAM WILL HAVE MORE CREDIT CARD OWNERS THAN INDIA

Source: Global Findex | Own Estimations http://databank.worldbank.org/Data/Views/VariableSelection/SelectVariables.aspx?source=1228#

Credit card owners Latam

Credit card owners India216.5 M

232.4 M

Source: eMarketer | Own Estimations www.emarketer.com/Article/B2C-Ecommerce-Climbs-Worldwide-Emerging-Markets-Drive-Sales-Higher/1010004

BY 2020…

eCommerce Buyers Latam

173.4 MeCommerce Buyers India158.1 M

ECOMMERCE BUYERS LATAM > 1.1 x INDIA

Source: Frost & Sullivan | Own Estimation http://es.slideshare.net/FrostandSullivan/mobile-payment-services-in-brazil - http://www.frost.com/sublib/display-market-insight.do?id=291014067

BY 2020…

Mobile Payment Subscribers: Latam189.5 M

MOBILE PAYMENT SUBSCRIBERS LATAM > 1.4 x INDIA

133.1 M Mobile Payment Subscribers: India

Source: WeAreSocial | eMarketer | Ericson http://www.slideshare.net/wearesocialsg - http://www.emarketer.com/Article/Feature-Phones-Important-Mobile-Web-Use-Latin-America/1011774http://www.ericsson.com/res/docs/2014/ericsson-mobility-report-june-2014.pdf - http://www.emarketer.com/Article/Internet-Hit-3-Billion-Users-2015/1011602

HOW WILL 2020 LOOK?LATAM IS CLOSING THE GAP WITH THE ADVANCED ECONOMIES

Internet Users

Mobile Internet Users

B2C eCommerce

Retail mCommerce

Share of mCommerce

Account in a financial institution

331.7 M

231 M

$89.7 B

-

-

51.1%

414.3 M

395.4 M

$366.9 B

-

-

74.7%

113.7 M

84.9 M

$ 35 B

$ 2.5 B

9.7%

68.1%

143.6 M

119.8 M

$ 179.8 B

$ 30.2 B

36.8%

83%

259.3 M

185.7 M

$492.1 B

$76.4 B

22%

93.6%

289.9 M

234.9 M

$ 811.7 B

$ 157.9 B

29%

96.6%

286 M

223.5 M

$ 382.7 B

-

-

94.8%

312.4 M

297.1 M

$ 567.8 B

-

-

97.8%

2015 2020 2015 2020 2015 2020 2015 2020

EU

1

2

3

4

5

6

LATAM BRAZIL US

Source: US Census Bureau | eMarketer | Own estimations http://www.census.gov/prod/1/pop/p25-1130/p251130.pdf - http://www.emarketer.com/Article/Colombia-Joins-Top-Three-Smartphone-Markets-Latin-America/1011750

BY 2020…

Smartphone users Latam

385 M US Population

323 M

LATAM WILL HAVE MORE SMARTPHONE USERS THAN US INHABITANTS

Source: US Census Bureau | eMarketer | Own estimations http://www.census.gov/prod/1/pop/p25-1130/p251130.pdf - http://www.emarketer.com/Article/Nine-10-Latin-American-Social-Networkers-Use-Facebook/1010404

BY 2020…

Facebook users Latam

343 MLATAM WILL HAVE MORE FACEBOOK USERS THAN US INHABITANTS

US Population323 M

US Population323 M

Source: US Census Bureau | eMarketer | Own estimations http://www.census.gov/prod/1/pop/p25-1130/p251130.pdf - http://databank.worldbank.org/Data/Views/VariableSelection/SelectVariables.aspx?source=1228#

BY 2020…

Bank account owners Latam

395 M

LATAM BANK ACCOUNT OWNERS > 1.2 x US INHABITANTS

Source: Internet World Stats http://www.internetworldstats.com/stats.htm - http://www.internetworldstats.com/pr/edi061.htm

LATAM´S INTERNET POPULATION 202051% OF WORLD WILL BE CONNECTED; 63% OF LATAM

Africa Asia Erope Middle East North America Latam Oceania

32

414327

173

627

1,878

459

27

332310

113

582

1,386

321

20152020

LATIN AMERICA'S INTERNET POPULATION WILL GROW 25% IN THE NEXT 5 YEARS

GLOBAL3.07 B → 3.91 B

(in millions)

Source: eMarketer | Own Estimates http://www.emarketer.com/Article/Latin-American-Internet-Audience-Nears-310-Million/1011667

NUMBER OF INTERNET USERS IN LATAM 202064% OF ALL INTERNET USERS ARE IN BRAZIL, MEXICO AND ARGENTINA LATAM 414 M

63% penetration

BRAZIL 144 M 68% penetration MEXICO 89 M

68% penetrationARGENTINA

33 M 76% penetration

COLOMBIA 34 M

65% penetration PERU 22 M 65% penetration CHILE 14 M

75% penetrationOTHER 78 M 46% penetration

Source: eMarketer | WorldBank

BRAZIL VS LATAM LATAM IS HUGE, BUT ECOMMERCE IS CONCENTRATED IN BRAZIL

Latam 414.3 MBrazil 143.6 M

Internet Users

65%

35%

Latam 232.4 MBrazil 99.9 M

Credit Card Users

57%

43%

Latam 442 MBrazil 156 M

Mobile Phone Users

65%

35%

Latam $367 BBrazil $179 B

eCommerce

49%

51%

Latam 662 MBrazil 211 M

Population

68%

32%

Latam $6,694 BBrazil $2,354 B

GDP

65%

35%

Source: eMarketer http://www.emarketer.com/Article/Brazil-Rules-Latin-American-B2C-Ecommerce-Market/1011073

B2C ECOMMERCE SALES IN LATAMBRAZIL IS THE LARGEST AND MOST ADVANCED MARKET IN THE REGION

It´s not a matter of size… It´s about development:

Infrastructure

Technology adoption

Supply of goods & services

Buying patterns and cultures

Banking and credit card penetration

N

N

N

N

N

In January of 2015, mobile purchases accounted for 10% of retail eCommerce in Brazil

20.0

39%

8.7

17%

4.6

9%

17.9

51.3

23.4

37%

11.4

18%

5.5

9%

22.3

62.6

35.0

39%

16.1

18%

9.9

11%

28.7

89.7

49.9

42%

22.6

19%

13.1

11%

33.3

118.9

67.8

43%

33.1

21%

17.3

11%

39.4

157.6

91.9

44%

43.9

21%

25.1

12%

48.0

208.9

130.1

47%

58.1

21%

30.4

11%

58.1

276.8

179.8

49%

73.4

20%

40.4

11%

73.4

366.9

Brazil

Mexico

Argentina

Other

Latin America

Share

Share

Share

2013 2014 2015 2016* 2020*In Billion USD

2017* 2018* 2019*

Source: eMarketer http://www.slideshare.net/Engelnator/e-marketer-mexico-online-2009-presentation slide 10 - http://www.emarketer.com/Article/Brazil-Rules-Latin-American-B2C-Ecommerce-Market/1011073 http://www.emarketer.com/Article/Global-B2C-Ecommerce-Sales-Hit-15-Trillion-This-Year-Driven-by-Growth-Emerging-Markets/1010575

LATAM´S ECOMMERCE IS CLOSING THE GAPIN 5 YEARS LATAM´S ECOMMERCE WILL BE EUROPE'S TODAY

B2C eCommerce will have grown x 16+ in 10 years!

2010 2011 2012 2013 2014 2015 2016 2017* 2018* 2019* 2020*

B2C eCommerce sales in Latin America

2015

Western Europe Today

$ 22.2 Billion

$ 29.7 Billion

$ 36.8 Billion

$ 51.3 Billion

$ 62.6 Billion

$ 89.7 Billion

$ 118.9 Billion

$ 157.6 Billion

$ 208.9 Billion

$ 276.8 Billion

$ 366.9 Billion

$ 382.7 Billion

x 16.5

Source: eMarketer http://www.emarketer.com/Article/Feature-Phones-Important-Mobile-Web-Use-Latin-America/1011774 - http://www.emarketer.com/Article/Ad-Spending-Western-Europe-Continues-Rebound/1011239 http://www.emarketer.com/Article/Latin-America-Lags-Far-Behind-Social-Ad-Spend-per-User/1011237 - http://www.emarketer.com/Article/Digital-Ad-Spending-Worldwide-Hit-3613753-Billion-2014/1010736

DIGITAL AD SPEND GROWTH IN LATAMLATAM IS 1.5x GLOBAL AVERAGE AND MOBILE IS RAPIDLY GROWING

47.4%

23.4%

14.3%

16.5%

10.4%

15.0%

38.5%

28.7%

18.3%

17.1%

11.3%

16.9%

30.0%

18.4%

15.3%

15.1%

11.9%

14.7%

26.5%

18.3%

11.9%

14.0%

8.4%

12.4%

24.0%

15.9%

10.4%

11.2%

6.8%

10.3%

22.0%

14.5%

9.4%

10.7%

5.6%

9.6%

18.9%

13.5%

8.8%

9.8%

5.0%

8.8%

16.2%

12.5%

8.2%

9.1%

4.5%

8.1%

Middle East & Africa

Latin America

Asia-Pacific

North America

Western Europe

Worldwide

* Own Estimates

2013 2014 2015 2016* 2017* 2018* 2019* 2020*%change

Digital Ad Spending Growth Worldwide (by Region)

2013 2014 2015 2016 2017 2018 2019* 2020*

Mobile Ad Spending Total Ad Spending

70

60

50

40

30

20

10

0

Billi

ons

Share of Mobile to total Ad Spending

Source: eMarketer http://www.emarketer.com/Article/Latin-American-Ecommerce-Remains-Small-with-Few-Digital-Buyers/1010566 http://www.emarketer.com/Article/Brazil-Rules-Latin-American-B2C-Ecommerce-Market/1011073 - http://blog.digishopgirl.com/mobile-ad-spend-is-on-the-rise-in-brazil/

WHY BRAZIL LEADS THE WAY?BRAZIL IS THE LARGEST AND MOST ADVANCED MARKET IN THE REGION

Smartphone users are expected to grow 83%

eCommerce is expected to grow x 5.1

Online Buyers are expected to grow 97%

Advertising is expected to grow 45%

Account Owners are expected to grow 27%

107 M

$180 B

71.7 M

$32.6 B

175 M

59 M

$35 B

36.1 M

$22.5 B

138 M

2015 2020

STARTUP BOOM IN SÃO PAULO12th IN THE GLOBAL STARTUP ECOSYSTEM RANKING

Source: Compass The Global Startup Ecosystem Ranking 2015

Silicon Valley

New York City

Los Angeles

Boston

Tel Aviv

London

Chicago

Seattle

Berlin

1

2

3

4

5

6

7

8

9

Singapore

Paris

São Paulo

Moscow

Austin

Bangalore

Sidney

Toronto

Vancouver

10

11

12

13

14

15

16

17

18

São Paulo is the 3rd fastest growing ecosystem

Source: GlobalFIndex 2014 http://databank.worldbank.org/Data/Views/VariableSelection/SelectVariables.aspx?source=1228#

CREDIT CARD OWNERSHIP IS KEY TO UNDERSTANDING THISBRAZIL'S CREDIT CARD OWNERSHIP IS ON THE RISE, DRIVING ECOMMERCE

India Ecuador Bolivia Colombia World Mexico Venezuela Latin America Argentina Chile Brazil Uruguay United States

Credit Card Ownership70%

60%

50%

40%

30%

20%

10%

0%

Who

ow

n a

cred

it ca

rd (a

ge +

15)

Source: Kantar WoldPanel http://www.kantarworldpanel.com/global/smartphone-os-market-share/

ANDROID HAS CONSOLIDATED ITS LEADERSHIPANDROID IS NOW THE DOMINANT OPERATING SYSTEM ALL ACROSS LATIN AMERICA

Android iOS Windows Blackberry Other

86.9% 4.6% 5.5% 1.3% 1.7%

Latin America

Android iOS Windows Blackberry Other

62.4% 33.2%

3.8% 0.6%

-

US

Android iOS Windows Blackberry Other

74.0% 24.4%

1.0% -

0.6%

China

Android iOS Windows Blackberry Other

81.5% 14.8%

2.7% 0.4% 0.6%

India

2011 2012 2013 2014 2015 2016* 2017* 2018* 2019* 2020*

36.8%

31.3%

25.1%

18.6%

13.6%

9.7%

4.8%

2.5%0.8%0.1%

Source: ETC | emarketer | Own estimates http://etc-digital.org/digital-trends/ecommerce/mobile-commerce/regional-overview/latin-america - http://www.emarketer.com/Article/Mobile-Banking-Transactions-Rise-Sharply-Latin-America/1011229 /http://www.emarketer.com/Article/Brazil-Ranks-No-10-Retail-Ecommerce-Sales-Worldwide/1011804 - http://www.emarketer.com/Article/Mobile-Trending-Among-Brazils-Buyers/1012288

MCOMMERCESTRONG GROWTH IN MCOMMERCE = 31% CAGR

mCommerce as % of Retail eCommerce transactions in Brazil

Source: emarketer http://www.emarketer.com/Article/Mobile-Banking-Transactions-Rise-Sharply-Latin-America/1011229

WHAT´S DRIVING M-PAYMENTS?SMARTPHONES DRIVE STRONG GROWTH IN MPAYMENTS @14% CAGR

Preferred Banking and payment channel

2010 2015* 2020*

31%

16%

2%4%

6%

27%

Bank branch Mobile phone

Smartphone AdvantagesConvenience and flexibility

Better control over spending

Low financial inclusion combined with the high

mobile penetration

Less chances of getting mugged

E

E

E

E

Source: GlobalFIndex 2014 | The Millennial Dirruption Index http://databank.worldbank.org/Data/Views/VariableSelection/SelectVariables.aspx?source=1228# - http://www.millennialdisruptionindex.com/wp-content/uploads/2014/02/MDI_Final.pdf

BANKING INDUSTRY IS RIPE FOR DISRUPTIONAND DISRUPTION IS ALREADY ON ITS WAY

Account Penetration

Peru

Colombia

Mexico

Bolivia

Uruguay

Ecuador

Argentina

Latin Americ

a India

Venezuela, R

BWorld

ChileBrazil

United States

Banking is at the highest risk of disruption by millennials

Consumers don’t think their bank offers anything

different from other banks.

71% would rather go to the dentist than listen to what

banks are saying.

Innovation will come from outside the industry. In 5 years...

68% believe the way we access our money will be totally

different

70% expect the way we pay for things will be totally different

E

E

E

E

1

2

100

90

80

70

60

50

40

30

20

10

0

% who have an account at a financial institution (age +15)

Source: ETC | EuroMonitor http://www.euromonitor.com/india/country-factfile - http://www.euromonitor.com/china/country-factfile - http://blog.euromonitor.com/2015/01/life-in-latin-america-in-2015.html

2020 LOOKS GREAT, BUT THE OPPORTUNITY IS TODAYLATAM PER CAPITA CONSUMER EXPENDITURE $6,740 (2.25x CHINA, 6.6x INDIA)

Latin America is a consumer market the size of China but with a far higher per capita spending

$4.2 TRILLIONLATAM

623 Million$4.1 TRILLIONCHINA

1,393 Million$1.3 TRILLIONINDIA

1,282 Million

Source: ETC | EuroMonitor http://www.emarketer.com/Article/Internet-Hit-3-Billion-Users-2015/1011602 - http://www.emarketer.com/Article/Emerging-Markets-Drive-Facebook-User-Growth/1009875http://www.emarketer.com/Article/B2C-Ecommerce-Climbs-Worldwide-Emerging-Markets-Drive-Sales-Higher/1010004 - http://www.slideshare.net/brahms82/ww-mobile-phoneusersemarketer0713 http://www.slideshare.net/wearesocialsg

LATAM IS AMONG THE MOST PROMISING MARKETS INDIA IS BIG, LATAM IS HUGE

$17.45 tr

259.3 M

254.2 M

191.2 M

24%

161.8 M

50.73 B

151.1 M

GDP

Internet Users

Mobile Phone Users

Smartphone Users

Prepaid Mobile Phones

eCommerce Buyers

Digital Advertising

Facebook users

$2.3 tr

252.3 M

581.1 M

123.3 M

95%

65.4 M

0.97 B

195.7 M

$5.2 tr

331.7 M

406.9 M

152.6 M

80%

109.6 M

5.7 B

232 M

US INDIA LATAM

Source: The economist https://twitter.com/ianbremmer/status/614169472098766848?utm_source=fb&fb_ref=Default&utm_content=614177040456118273&utm_campaign=RodrigoTeijeiro&utm_medium=fb

BY 2050 LATAM WILL REMAIN ON TOPTOP 10 GDP: BRAZIL REMAINS IN 7th PLACE, MEXICO MOVES UP TO 8th

US (1)

China (2)

Japan (3)

Germany (4)

UK (5)

France (6)

Brazil (7)

Italy (8)

India (9)

Russia (10) 1,861

2,055

2,149

2,346

2,835

2,951

3,865

4,606

10,335

17,419

Nominal GDP 2014 - (U$S bn) Nominal GDP 2050 - (U$S bn)

China(1)

US(2)

India(3)

Indonesia(4)

Japan(5)

Germany(6)

Brazil(7)

Mexico(8)

UK(9)

France(10) 9,671

9,812

9,826

10,334

11,334

11,367

15,432

63,842

70,913

105,916

Economy moves up rankings

Economy moves down rankings

Economy remains at rankings

Source: Worldbank http://databank.worldbank.org/data/reports.aspx?source=doing-business&Type=TABLE#

WE ALWAYS THOUGHT DOING BUSINESS IN LATAM WAS HARDWELL… INDIA IS EVEN HARDER

39.6%

46

7%

11.9

111.2%

20.7%

25.3%

Cost to enforce a contract (% of claim)

Procedures required to enforce a contract (number)

Cost to register property (% of property value)

Procedures required to start a business (number)

Minimum paid-in capital required to start a business (% of income per capita)

Labor tax and contributions (%)

Profit tax (%)

30.6%

39.8

6.1%

8.3

3.2%

14.7%

20.7%

INDIA LATAM

Source: Global Entrepreneurship Monitor http://www.gemconsortium.org/country-profile/36

LATAM HAS VERY DIFFERENT REALITIESSTILL LANDSCAPE FOR ENTREPRENEURS ACROSS TOP LATAM COUNTRIES LOOKS PROMISING VS INDIA

142

6.6%

3.7%

39%

37%

8%

38%

Ease of Doing Business

Total early-stage Entrepreneurial Activity

Established Business Ownership

Perceived Opportunities

Perceived Capabilities

Entrepreneurial Intention

Fear of Failure

120

17.2%

17.5%

56%

50%

25%

36%

124

15.9%

9.6%

41%

62%

31%

25%

INDIA BRAZIL ARGENTINA

39

19%

4.5%

49%

53%

17%

30%

MEXICO

41

26.8%

8.8%

67%

65%

50%

28%

CHILE

ARGENTINA EXPANDS OUTSIDE ITS BORDERSTHOUGH SMALLER THAN BRAZIL, ARGENTINA IS GLOBALLY COMPETITIVE

1999

Tiger, Sequoia, Expedia

Private

US 1.3 B

Online Since

Select Investors

Type

Valuation/ Market Cap

1999

Hicks Muse Tate and Furst, Ebay Inc

Public

USD 5.99 B

2003

FTV Capital, Riverwood Capital

Public

USD 1.17 B

BRAZIL IS HUGE BUT PLAYS LOCALLYBRAZILIAN COMPANIES STARTING TO GROW REGIONALLY WITH GREAT OPPORTUNITIES AHEAD

Source: eMarketer http://www.emarketer.com/Article/Brazil-Rules-Latin-American-B2C-Ecommerce-Market/1011073

1

2

3

4

5

6

7

$887

$800

$700

$375

$375

$250

$250

Rocket Internet

Tiger

Grupo Folha

Naspers

Seek

Insight

Kaszek

Valuation(USD Million)

Lead InvestorFirm

1

2

3

4

$2,317

$2,112

$706

$375

BOVESPA

BOVESPA

BOVESPA

BOVESPA

Valuation(USD Million)

Trade InFirm

Dafiti

Netshoes

UOL

Buscapé

Catho

Hotel Urbano

Viva Real

B2W

TOTVS

Grupo Linx

Alog

IPO VC/PE

THE TIME TO INVEST IS NOWBIG BETS IN LATAM; + USD 1.2 BILLION IN LAST 18 MONTHS ALONE

Source: Internal research, select deals Complete list: https://goo.gl/eRnpsK

Elo7, EduK

Dafiti, Netshoes

Hotel Urbano, Elo7

Nubank, GetNinjas, Guiabolso, GOintegro, Contabilizei

Movile

GetNinjas, Elo7, Conta Azul, Emprego Ligado, Enjoei, Meus Pedidos

Psafe, BankFacil, Minuto Seguro, Resultados Digitais

Netshoes, Navent, GOintegro

Nubank

Hotel Urbano, Nubank, 99Taxis, GetNinjas, ContaAzul

- APPENDIX -

World

Latin America

Advanced Economies

MACROECONOMIC OUTLOOKTHE COMMODITY BOOM IS OVER, BUT THE RECOVERY IS ON IT’S WAY

Source: IMF http://www.google.com/publicdata/explore?ds=k3s92bru78li6_#!ctype=l&strail=false&bcs=d&nselm=h&met_y=ngdp_rpch&scale_y=lin&ind_y=false&rdim=world&idim=country_group:205:110&idim=world:Earth&ifdim=world&tstart=1403406000000&tend=1592794800000&hl=en_US&dl=en_US&ind=false

2015 2016 2017 2018 2019 2020

5,00%

4,00%

3,00%

2,00%

1,00%

0,00%

GDP Growth

3,45%

0,86%

2,36%

3,76%

2,01%

2,42%

3,85%

2,67%

2,18%

3,87%

2,81%

2,08%

3,93%

2,91%

1,96%

3,97%

2,98%

1,95%

FOREIGN DIRECT INVESTMENTBRAZIL'S FDI INFLOWS ARE STILL LARGE AND GROWING

Source: PWC | CNN | IMF | United Nations | OECD http://www.pwc.com.br/pt/ceo-survey-brazil/2015/index.jhtml - http://edition.cnn.com/2015/03/15/americas/brazil-protests/ - https://www.imf.org/external/pubs/ft/weo/2015/update/01/pdf/0115.pdFhttp://unctad.org/en/PublicationsLibrary/webdiaeia2015d1_en.pdf - http://www.oecd.org/eco/outlook/mexico-economic-forecast-summary.htm

Top 10 economies by FDI inflows (billion USD)

China Hong Kong US Singapore Brazil UK Canada Australia Netherlands Luxembourg

$36$42

$49$53$61$62

$81$86

$111

$128

LATAM´S ONLINE POPULATION IS FAR FROM SATURATIONINTERNET PENETRATION

Source: eMarketer | WeAreSocial http://www.emarketer.com/Article/Latin-American-Internet-Audience-Nears-310-Million/1011667 - http://www.slideshare.net/wearesocialsg

56%

43%

88%

26%69%

81% 45% 38%

36%

19%33%

51%

Central America

South America

AfricaOceania

East Asia

Southeast Asia

Central AsiaNorth

America

South Asia

East EuropeWest

Europe

Middle East

Global Average 42%

Latam Average 54.1%

Internet penetration in Latin America is still relatively small. Nonetheless, Latam´s online penetration reach 378.3M 2018 a 22% increase compared to 2014

INTERNET USERS 2020BRAZIL IS BIG, YOUNG AND HIGHLY ACTIVE

Source: KPCB http://www.kpcb.com/internet-trends

1

2

3

4

5

6

7

632 M

259,3 M

252,3 M

114 M

104 M

87 M

83 M

47%

84%

20%

56%

61%

84%

90%

Internet Users PenetrationRegion

China

US

India

Brazil

Japan

Russia

Indonesia

2015

Rank

1

2

3

4

5

6

7

850 M

465 M

290 M

143.6

142.8

107.6

105.5

59%

34%

85%

68%

53%

86%

75%

Internet Users PenetrationRegion

China

India

US

Brazil

Indonesia

Japan

Russia

2020

Rank

YOUNGER AUDIENCE+60 % OF BRAZIL'S INTERNET AUDIENCE IS UNDER 35

Source: GlobalWebIndex http://www.globalwebindex.net/blog/internet-users-in-latam-spend-the-most-time-online - http://www.statista.com/statistics/272365/age-distribution-of-internet-users-worldwide/ http://www.statista.com/statistics/319891/age-distribution-of-internet-users-latin-america/ - http://www.statista.com/statistics/254724/age-distribution-of-internet-users-in-brazil/

Global

Latam

Brazil 4.90%

7.20%

12.70%

11.60%

12.90%

13.70%

20.90%

21.50%

20.40%

23.20%

27.00%

26.70%

39.40%

31.40%

26.50%

0-24 25-34 35-44 45-54 Above 55

LATAM INTERNET USERS ARE HIGHLY ACTIVE

Source: GlobalWebIndex | eMarketer http://www.globalwebindex.net/blog/internet-users-in-latam-spend-the-most-time-online - http://www.emarketer.com/Article/Brazils-Web-Users-Take-Top-Spot-Latin-America-Time-Spent-Online/1011152

Brazil

Latin America

Argentina

Peru

Chile

Venezuela

Colombia

Mexico

0 5 10 15 20 25 30 35

INTERNET USERS IN BRAZIL SPENT 37.7% MORE MONTHLY TIME ONLINE THAN THE AVERAGE IN LATIN AMERICA

Average Monthly Time Spent Online

INTERNET USERS IN LATAM SPEND THE MOST TIME ONLINE

Time Spent Online, by Region

Latin America

North America

Middle East & Africa

Asia Pacific

Europe

420 680% 20%40%60% 0%

Online PC/Laptop/Tablet Online Mobile

MOBILE ONLINE

Source: WeAreSocial | eMarketer | Ericson http://www.slideshare.net/wearesocialsg - http://www.emarketer.com/Article/Feature-Phones-Important-Mobile-Web-Use-Latin-America/1011774http://www.ericsson.com/res/docs/2014/ericsson-mobility-report-june-2014.pdf

3G &4G CONNECTIONS COMPARED TO MOBILE CONNECTIONS

57%

31%

85%

16%84%

85% 53% 21%

34%

8%48%

53%

Central America

South America

AfricaOceania

East Asia

Southeast Asia

Central AsiaNorth

America

South Asia

East EuropeWest

Europe

Middle East

Global Average 38%

Latam Average 57%

Data volumes and revenues are growing strongly in Latam, fuelled by the changing device mix with increasing smartphone adoption and mobile broadband services

MORE MOBILE PHONES THAN PEOPLE

Source: eMarketer | WeAreSocial | GSMA | UOL http://www.emarketer.com/Article/Nearly-400-Million-Latin-America-Used-Mobile-Phones-2014/1011818 - http://www.gsmamobileeconomylatinamerica.com/GSMA_Mobile_Economy_LatinAmerica_2014.pdfhttp://tecnologia.uol.com.br/noticias/redacao/2014/11/14/numero-de-linhas-de-celulares-no-brasil-passa-de-278-milhoes.htm#fotoNav=17

THERE ARE MORE MOBILE CONNECTIONS THAN PEOPLE IN BRAZIL

2013 2014 2015 2016 2017 2018

434.4426.1416.5406.9395.5379.5

63.2% 65.2% 66.4% 67.3% 68.2% 68.9%

Mobile Phone Users Latin America

By September 2014, there were 702 million mobile connections in Latin America (112,3% compared

to population) +80% prepaid connections

In Brazil, there are 278 million mobile connections (138% compared to population)

75% prepaid connections

57.0%

62.0%

67.0%

72.0%

77.0%

2013 2014 2015 2016 2017 2018

Brazil Mexico Argentina Latam

Mobile Phone user penetration by Country

RecargaPay is airtime and bill payments for the mobile generation.

The main problem we are solving is the +20 min that most people in Latin America spend in lines to pay for airtime or utilities, when they could be transacting on their mobile in 10 seconds. This happens billions of times a year. The second problem is that access to smartphones largely exceeds banked population, which means that many are left out of the convenience of mobile payments, due to lack of access to digital payments.

RecargaPay is already the leading mobile prepaid top-up platform in Brazil and Latin America, (with over 1 million mobile customers), and it is now expanding into utility bill payments and financial services for the unbanked.

We feel that it is time to democratize mobile payments.

More info: http://recargapay.com/about