fnbox, a Latin American technology company which focuses on creating global and scalable Internet businesses presents an internet market research & outlok on the Latin American Market. The study covers following topics: * Latin America: Rising Star of the Global Economy * Growing Internet Audience * Online Advertising: Booming Potential * E-commerce is Taking off * More Mobile Phones Than People * Latam’s Largest Market: Brazil * The Opportunity with U.S. Hispanics * Latam’s Online User’s Profile * Top Players in the Region

1. 2011 Latin America
Internet Market Research & Outlook
Latam 2010-2011
1

2. 2011 Latin America
Internet Market Research & Outlook
• Latin America: Rising Star of the Global Economy
• Growing Internet Audience
• Online Advertising: Booming Potential
• E-commerce is Taking off
• More Mobile Phones Than People
• Latam’s Largest Market: Brazil
• The Opportunity with U.S. Hispanics
• Latam’s Online User’s Profile
• Top Players in the Region
2

3. Latin America will continue growing at higher
rates than developed economies
Real GDP (annual % change)
20%
Latam’s GDP growth for 2011-2012*:
15%
• Argentina: 5%
• Brazil: 4,3% 10%
• Chile: 5,8%
5%
• Colombia: 4,3%
• Mexico: 4,1% 0%
• G7 countries: 2,04% 2005 2006 2007 2008 2009 2010* 2011* 2012*
• European Union: 1,7% -5%
-10%
Major advanced economies (G7) European Union
China Argentina
Brazil Chile
Source: International Monetary Fund, Scotiabank Group
3

4. Top 14 Cities of Latam:
All of them will climb in World GDP rankings
2010 GDP 2025 GDP GDP per
Latam Current
City (Country) World World Capita (by
Rank Population
Rank Rank city)
1 Sao Paulo (Brazil) 20.800.000 8 6 $18.654
2 Mexico City (Mexico) 22.800.000 9 7 $17.105
3 Buenos Aires (Argentina) 14.800.000 12 10 $24.459
Paris (6th) and Osaka (7th) will be
overtaken in 2025 GDP by Mexico 4 Rio de Janeiro (Brazil) 12.500.000 30 24 $16.080
City and Sao Paulo. 5 Santiago (Chile) 6.050.000 51 50 $19.835
6 Brasilia (Brazil) 3.925.000 55 51 $28.025
Buenos Aires will overtake
7 Lima (Peru) 9.200.000 56 52 $11.848
Boston (12th) and Washington DC
(11th) by 2025 GDP. 8 Belo Horizonte (Brazil) 5.700.000 61 89 $10.702
9 Monterrey (Mexico) 4.350.000 63 58 $23.448
10 Bogota (Colombia) 8.850.000 64 61 $11.299
11 Porto Alegre (Brazil) 4.100.000 66 85 $16.098
12 Guadalajara (Mexico) 4.700.000 81 74 $17.234
13 Medellin (Colombia) 3.625.000 104 103 $13.793
14 Curitiba (Brazil) 3.300.000 113 112 $13.333
Source: PriceWaterhouseCoopers
4

5. Latam doubles the Worldwide growth
rate of Online Population
Online Population Growth
2009-2010 (%)
32%
According to eMarketer, the number of
internet users in Latin America has been
increasing at about double the rate of
population growth.
15%
8%
8%
6%
3%
Middle East - Latin America Worldwide Europe Asia Pacific North America
Africa
Source: comScore
5

6. And Latam’s Online Population
is far from saturation
Internet Penetration (%)
78.20% 77.30%
Internet penetration in South
America is still relatively small
Online Populations of Latam will 42.80%
boom with increasing internet 36.50% 36.20%
penetration 31.60%
6.90%
Japan United Russia South Brazil China India
States America
Source: Internet World Stats
6

7. Most major markets in
Latam have grown significantly
Audience growth in Latam
2009-2010
2009
Eric Schmidt 2010
40
(Google’s former CEO):
33.3
“..internet usage has increased
dramatically [in Latin America]. In
the last years, Brazil and
Argentina are having the fastest
17.8
growth in the world. We are 14.8
looking forward to make strong 12.5 12.8 12.3
investments in both countries” 9.8
6.7 7.3
2.2 2.9
(April 2011 Interview – Diario Perfil) 1.1 1.2
Brazil Mexico Argentina Colombia Chile Venezuela Puerto Rico
+20% +21% +3% +26% +9% +27% +9%
Source: comScore
7

8. Latam’s Online Ads: in infant stages but
with booming potential
Fastest-growing region in the world in online ad Latin America
spending with a growth rate of 13.3% over the Online Advertising Spending Metrics,
next five years. (Magna Global) 2009-2014
(billions, % of total and % change)
Online ad spending will more than double over the 2009 2010 2011 2012 2013 2014
next four years, growing from $2 billion in 2010 to
$4.2 billion in 2014. (eMarketer) Worldwide $ 55,2 $ 61,8 $ 68,7 $ 79,0 $ 87,4 $ 96,8
Latin
$ 1,7 $ 2,0 $ 2,5 $ 3,1 $ 3,6 $ 4,2
America
% of
3,0% 3,3% 3,6% 3,9% 4,1% 4,3%
worldwide
% change 13,3% 23,1% 21,2% 24,6% 16,2% 16,2%
Source: eMarketer
8

9. Latam’s e-commerce is taking off...
E-commerce in LatAm 1.20% Growing 51% per year during the
34.5 period 2003-2009
1.00%
E-commerce as a % of GDP
27.6
0.80%
US$ Billions
21.8
0.60% E-commerce has also grown in
15.6
importance: it has increased as a
0.40%
10.6 percentage of GDP at an average
7.5
rate of 34% per year.
4.9 0.20%
3
1.9
0.00%
2003 2004 2005 2006 2007 2008 2009 2010* 2011*
Sales E-commerce as a % of GDP
Source: :AmericaEconomia Intelligence
9

10. And it will continue growing
By 2014, global e-commerce spending is projected to increase more than 90 percent. In
Latin America, the amount spent online is projected to more than double.
Source: Euromonitor International
10

11. E-commerce by country
1.3%
It’s not a matter of size… 1.3%
2.0%
2.7%
It’s about development 2.9% Brasil
Mexico
• Infrastructure 4.0%
Chile
4.0% Venezuela
• Technology adoption
4.2% Argentina
Caribe sin PR
• Supply of goods and services 4.7%
Centro Am.
60.8% Puerto Rico
• Buying patterns and cultures 12.1% Colombia
Peru
• Banking and credit card penetration Other
Source: :AmericaEconomia Intelligence
11

12. E-commerce categories in Latin America
Taxes, 2%
C2C, 6%
The travel category is still the
most important in Latin America International
Retail, 13% Travel
The retail category is growing Travel, 45% Retail
the most
International
Retail
Paying taxes online has a high C2C
Retail, 34%
potential
Taxes
Source: :AmericaEconomia Intelligence
12

13. Credit Card Penetration
Number of credit cards per 10 individuals
19
Brazil is the clear leader, but it’s
still far behind penetration in
10
developed countries Latam's Leader
7
4-5
2 or less
Colombia, Mexico and Argentina, Chile, Puerto Brazil Spain USA
Other Rico, Uruguay
Non-Latam countries
Source: Fuente: Estudio Regional de Comercio Electrónico América Economía 2010
13

14. Latam: more mobile phones than people
According to Informa Telecoms & Media, Latin America will reach more mobiles than people by the end of 1Q11
Prepaid represents over 80%
Mobile Phone Users in Latin Mobile Phone User Penetration
America 2009-2015 by Country, 2009-2015
90%
70.7% 72.9% 80%
66.2% 68.6%
60.6% 63.4%
57.3%
70%
432.7 450.7
396.2 415.6
354.6 375.5 60%
331.5
50%
40%
2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015
Mobile Phone Users Argentina Brazil Mexico Latin America
Source: eMarketer Source: eMarketer
14

15. Latam’s largest market: Brazil
Brazil: Internet Users and Total Visits
2,210 2,253 2,252
2,155 2,176 2,199 2,163
2,113 2,153 2,132
1,966 1,978
1,848
Brazil has nearly
40% of Latam’s
Unique Visitors (MM)
internet users
Visits (MM)
38.7 39.3 40.0
37.5 38.1
It is the 8th largest 33.3 33.8 34.2 34.8 35.3 35.9 36.4 37.0
internet audience in
the world (15+, H&W).
Mexico is 16th and
Argentina is 19th
Unique visitors (MM) Visits (MM)
Source: comScore
15

16. Brazil’s e-commerce
Brazil’s e-commerce is expected to grow at a E-consumer evolution in Brazil
compound annual growth rate (CAGR) of 18% over
11.3
the next five years.
9.4
According to Forrester Research, Brazilian
e-commerce is set to jump to 178% by 2016.
Millions of e-consumers
6.7
Billions of US$
Retail Sites Growth 5.2
27+
4 23
+9%
2.8 17.6
+3%
69.6%
13.2
63.8% 63.9%
61.8% 9.5
7
Brazil Worldwide 2006 2007 2008 2009 2010 2011*
2009 Reach 2010 Reach E-consumers Sales
Source: comScore Source: Camara Brasileira de Comercio Eletronico
16

17. Social Networking in Brazil
The reach of the Social Networking category
Twitter.com Top 15 Markets by
continues to be very high throughout Latin
America % Reach
Brazil 22%
In Brazil, even with such a high reach, the Netherlands 22%
category is amazingly still growing: Venezuela 21%
In October 2010, Brazil was Twitter’s #1 market Japan 20%
Indonesia 19%
Canada 15%
Social Networking Sites Philippines 14%
Growth Argentina 13%
+10%
Singapore 13%
85.3% +4% United Kingdom 13%
77.9%
Turkey 13%
70.5%
67.6% United States 13%
Chile 12%
Mexico 11%
Brazil Worldwide Colombia 10%
2009 Reach 2010 Reach Source: comScore Source: comScore
17

18. Hispanics in the U.S.
2010 Population U.S. Population
(Millions) (by race, % of total)
4%
2%
White non-hispanic 200.9
13% White non-hispanic
Hispanic 49.7
Hispanic
Black 39.9 16% Black
Asian
65%
Asian 14.4
Multi-racial
Multi-racial 5.4
Source: U.S. Census Bureau Source: U.S. Census Bureau
Hispanics are the 1st minority of the U.S. with an approx. population of 50 million
That makes U.S. Hispanics the 2nd largest concentration of Hispanics in the world: only
behind Mexico
18

19. Hispanics are a rapidly growing population…
Projections of the Hispanic Population
(Millions)
132.8
According to U.S. Census Bureau 120.2
projections, Hispanics will grow
108.2
167% (White Non-Hispanics will
only grow 1%) from 2010 -2050, 96.8
across all ages. 85.9
75.8
66.4
It is also projected that by 2050, 57.7
Hispanics will account for 30% of 49.7
28% 30%
the U.S. population. That’s almost 25% 27%
21% 23%
double from their current 18% 19%
16%
percentage
2010 2015 2020 2025 2030 2035 2040 2045 2050
Numer of hispanics in millions % of total population
Source: U.S. Census Bureau
19

20. With More Buying Power
Hispanic Buying Power
(in billions)
1,330
Hispanics’ percentage of +36%
buying power is expected to 978
double in the period of 1990-
2014
+100%
That’s twice to growth in
489
percentage of non-Hispanics
+130%
In comparison, Brazilian’s 212
buying power for 2009-2014 9.1% 10.2%
will grow over 30% 5.0%
6.8%
1990 2000 2009 2014
Buying power in billions % of total buying power
Source: Selig Center for Economic Growth, University of Georgia, International Monetary Fund
20

21. Compared to non-Hispanics,
Hispanic adult Internet users…
...are younger:
• On average, 8 years younger Larger households
• Twice as likely to be 18-24 with more kids and
• 50% more likely to be 25-35 employed adults
…live in larger households:
• On average, 1 person more per household (4 vs.
2.9)
• 3x as likely to live in 5+ households
...are twice as likely to live in households with 3 or more
children, and Attractive
Audience
...are 77% more likely to live in households with 3 or more
employed adults
Source: Simmons NCS. Leading sources used: Interactive Advertising Bureau
21

22. Latam’s Online User’s Profile
Brazil has the largest online Total hours online per Visitor in Latin
population in Latin America America
Worldwide Average: 22.4
Brazil 24.3
– 45.1 million is currently the
comScore estimate of 6+, Mexico 24.1
home & work
Argentina 25
– Extended universe estimate
Colombia 20.1
is 77.3 million, larger than
the total populations of
Chile 22.8
France and the UK (66 and
62 million, respectively) Peru 24.7
Average usage in Brazil, Venezuela 19.8
Mexico, Argentina, Chile and
Puerto Rico 17.1
Peru outpace global average
Source: comScore
22

23. Young People Drive Internet
Consumption in Latin America
Average Time Online by Age
Hours per Visitor
30
15-24 year olds in Latin 26.6
worldwide average: 22.6
America are the heaviest 25 23 22.8
24.2
23.2
22.4 21.9 22.4
Internet users, outpacing 20.8 21.3 21.2 21.8
every other age group in 20
Latin America as well as the
15
global average for the age
group 10
5
0
15+ 15-24 25-34 35-44 45-54 55+
Latin America Worldwide
Source: comScore
23

24. Social Networks Reached 88% of
Latin American Internet Users
Twitter.com Top 15 Markets by % Reach
Brazil 22%
Netherlands 22%
Social Networks continue to be a central Venezuela
Japan
21%
20%
touch point of the Latin American web Indonesia
Canada 15%
19%
experience Philippines
Argentina
14%
13%
Singapore 13%
United… 13%
Turkey 13%
United States 13%
Chile 12%
Mexico 11%
Social Networking Sites Growth Colombia 10%
Source: comScore
+7% Facebook.com Top 15 Markets by % Reach
87.7%
82.2% Philippines 93.7%
+4% Turkey 90.7%
Israel 90.2%
70.5% Chile 89.5%
67.6% Malaysia 88.4%
Argentina 88.3%
Venezuela 87.8%
Indonesia 87.4%
Canada 86.9%
Colombia 86.7%
Peru 83.4%
Latin America Worldwide Mexico 82.6%
United Kingdom 81.4%
Puerto Rico 81.4%
Dec 2009 Reach Dec 2010 Reach Finland 81.2%
Source: comScore Source: comScore
24

25. Instant Messengers, Social Networking,
and Blogs are Key in LatAm
Reach of Key Categories
Search/Navigation Index: 104 88%
85%
News/Information 94 57%
60%
Social Networking 124 70%
88% Technolgy 106 56%
53%
e-mail 121 63%
76% Downloads 97 55%
57%
Multimedia 106 71%
67%
Games 103 53%
51%
Instant Messengers 196 35%
68% Business/Finance 78 35%
46%
Photos 125 53%
66% Education 121 29%
35%
Directories/Resources 94 64%
68%
Sports 99 31%
32%
Blogs 126 50%
63% TV 93 31%
33%
Retail 97 62%
64%
Travel 76 22%
30%
Community 104 60%
58%
Automotive 76 18%
24%
Latin America Worldwide Latin America Worldwide
Source: comScore
25

26. Group-buying Sites Showed
Impressive Growth in Late 2010
Group-buying sites have taken off in Groupon Top Markets by % Reach
Latin America and, based on what
has been seen in the USA, are set to Argentina 21%
continue their growth in 2011
Norway 12%
Argentina is Groupon’s top market,
with one of every five web users Poland 10%
visiting the coupon site in February
2011. Brazil is also one of top Taiwan 9%
markets with 6% reach
Spain 7%
United Kingdom 6%
Italy 6%
France 6%
Brazil 6%
Ireland 5%
Source: comScore
26

27. Top Players in the Region
Largest Online Commerce Platform in Latin America
• IPO in August 2007 - $3.81 billion Market Cap (April 14th, 2011)
• 2010: Revenues US$217 million – EBITDA $75 million
• Stock performance (last 24 months): +300.69% (vs. Nasdaq: +66.43%)
Largest Shopping Comparison Website in Latin America
• Acquired by Naspers in September 2009 for $374 million
• More than 15 million products sold on over 60 thousand stores
Leading Provider of Online Classifieds in Latin America and Asia
• Over 125 million unique visitors per month, presence in 90 countries in 40
languages
• Naspers bought a controlling stake in August 2010 for approximately $200
million
Pioneer and Leader in Collective Purchases in Brazil
• In nine months it registered over 5 million users and sold more than 2 million
vouchers, generating savings of over $ 120 million to its users
• Received funding from Benchmark Capital and Monashees Capital (undisclosed
amount)
27

28. Top Players in the Region (cont.)
Leading Job Portal in Latam
• Acquired by Tiger Global in July 2007 for $15 million
• $1 million EBITDA when acquired
Leading Travel Portal in Latam
• Over $125 million sales in 2007
• Has raised over $60 million in funding
Leading Social Gaming Company in Brazil
• Over 20 million active players a month
• Has raised over $46 million in funding
Leading Spanish/Portuguese social networking site
• Over 50 million registered users
• Raised over $6 million in funding
28

29. Gustavo Victorica Federico Yu
CFO Finance Analyst
gustavo.victorica@fnbox.com federico.yu@fnbox.com
For more information visit: http://www.fnbox.com