Inbound Chile

Chile Market overview Chile has a population of 17.6 million inhabitants 4.9 million buy online Online sales amounted to a value worth $3.2 billion in 2013 of which $2 billing related to goods The annual average online spend $662 in 2013, for 2014 this amount is expected to have increased significantly to $822 At the end of 2013 there were 3.4 million e-households with average expenditure was $935 per e-household. The top 3 categories* Health care, Luxury goods, sport equipment Consumer Electronics & appliances Food & Drinks The top 3 countries they buy from US China HK “66% of the inhabitants use the internet” *Source: At Kearney global retail ecommerce index 2013

Highlights of our delivery service to CL Delivery via a network of trusted local partners Different injection points into Santiago DDU & DDP service available, clearance into CL via our partner in Chile 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) – 2 delivery attempts Covering CL in average between 7-12 days from US, EU, Asia, AU for main cities & large populated areas Final mile delivery in CL between 3-7 business days Maximum weight : 154 lbs (70kg) and parcel size* : Length x height x width:47.25 inch x 31.5 inch x 23.5 inch (120cm x 80cm x 60cm) *Deviation to this standard service exist - on a pallet can go up to 1,100 lbs (500kg) – parcel size: in L x in H x in W ) inch - on pallet (120cm in L x 120cm in H x 100 cm in W)

Special requirements for customs clearance into CL ! Additional information which is requested, by our local partner, to perform customs clearance and delivery into Chile 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 Chile 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 CL 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 CL Day 1 3 We airlift parcels into Santiago (via MIA) and perform customs clearance through our partner in Chile US: 1-2 days EU: 2-4 days Asia: 2-4 days AU: 3-4 days 4 Parcels are injected into our CL partner networks for delivery within CL* 3-7 days * MIA: Miami

Transit times for shipping to CL via Santiago day days Only post Final Mile CL Delivery (main cities) Transport to CL* From US:1 - 2 days From EU: days From Asia: days From AU: days E2E transit times to CL From US: days From EU: days From Asia: days From AU: days *start from LG facility – 1 extra day for handling Santiago Injection via US (LAX / MIA)