Hanwha's Mexico Business Examined

Estimated ****** ***********

** ******, ** ********, ****** ** * ***** ******** in ***** ** **** *** ****** sales, **** **** ********** **** **-******* sales **** ** *** **$**–** ******* range.

****** ******** ** ******* ****** ***** figures ** * **** **** ****, simply ******* **** **** *** "**** good" *** *** ******* ** ***** of *** ********:

[*]* ***'* ******* ************, *** **** we *** **** *** **, ******** to *** *********, ** *** * very **** ****, ** **** ** was * ***** **** *** ******** with *** ********, *** ***** ******* where *** ****** ***, ** *** a **** ****.

**** *** ***** *** ******'* **** competitors ** ******, ********* ** ***** individuals ******** **** ******'* ****** ********. Other ***** *********** ******* ******** *** Vivotek. ****** ******** ** **** ** discuss *** *********** ** ****, ********* only ** "***-**** ***** ************" *************:

[W]hen *** **** ** *** *********** *********, ** ******* **** ******** **** *** *******, ***-**** ***** ************ *************, **'** ********** ** *** ***** *** ** *** ****** and I'd say that really our positioning in Mexico has been strong because we've won emblematic projects over the years, so the brand is well-established in Mexico. And really we *** ********* ** **** *** **** ** ***** ************ *********. [emphasis added]

**********

****** *** **** ** ****** *** over ** *****, ******** *** ** Samsung ******* ** ***** **** ****** the ****** ***********:

******* ****. *********, ****'* ***** ** Hanwha *********, ** ** *** ******* Techwin ** **** ****. *** **'** had ******* *** ****** ** ****** since ******* ****.

****** ******* ** ********* ** ******, considerably ***** (*.*. < **%) **** competitors ****, *****, *****, *** ********* yet **** **** ********** *******:

**'** *** * **** ** ** people ***** ** ******, **** ******** commercial ********** *** ***********, ** **** people ****** *** *******, ** **** people ** *********, **'** ******** ********** as ****, ********** ****** *****í*, ** **** *********** ********* ** well, ** ******** ** **** ****** investments ** ***********, * **** **** that's *** ** *** *** *************** all **** ***** ******* *** ********** in ******. ** **** ********* ********* and ******* ********* ** ****, *** we *** ********* ** ***** *******, Mexico ** * **** ********* ****** for **, ** ** *** ********* in *********, ** *******, ** ** speak.

************

****** **** **** ** *** *** "primary" ************ ** ******, ***************, ******'* ******* ******** ******* ***********, and ********-***** *******:

[*]*'** ******** * ******** ** ************ the ******** ********** ***** *******. [*]** main ******** ************, *** **** ******* distributors ** ******, **'** **** **** to *** ** ************ *****—*******,****** ** ************, ****** *****, ********, ****, *** Syscom. ***** *** *** *** ******** distributors, ***** *** *** **** **** work **** ** **** *******, ***** are *** *** ************. **'** **** some ************, ** ***'* ******* ************ on *** ***** *******, *** ***** are *** **** **** ****** ** stock *** ******* *** **** **** closely **** ** *** ** *** and ** ********.

****** ****** ************ ***/** ****** **** its ***** **** ******** ************, ****************, * ******-***** *********** **** ******** exited *** ******** ********, ********* ** IPVM *******. (*** **** **** ****** formerly *********** ******* ******* ** ************ by******** ***** **** *******.)

****** ***** ******** ******* *** ******* in ******, ** ********* ** * person ******** **** ******'* ****** **********, who **** **** *** ****** ************ employs * "***% ************ *****" **** "no ****** ***** ** ***********."

***********

****** ******** ** **** ** ******** its *********** ** ******, ******* ****** that *** *********** ******* "*** *** major ******* **** *** ****":

*** ****, ** ** ******** ** integrators *** *** *********, *** **** program, **** ******* ** *** ** is ** *** ****** ****** *** in ***** ***** ** *** *****, that's ****** *** ********* *** ******* the *********[.] **, **'** ********** *** a *** ** ****** ** *** integrator ********* ** ****** *** ****** the ****** *** ****** *** *** major ******* **** *** ****, ******** in ******, ******, ************* **** **** with ** ** ***** ******* ** the *****, *** ****** * *** of *** ***** *********** ** ******** who **** **** ***** ** **********, that *** *** ***** ** *** Wisenet * **********, **** **** ** work **** **, ********** ******* ** a *** ** *** *** ** features **** *** ****** ** *** cameras, *** ****'* ****** *** **'** been ********** * *** ** ***** partners **** *** *******, *** ** course, *** ***'* ***** *** *************, there's * ***** *********** ****** *** program ** ******** ** ****, **** more, *** *** ****** *******, ******* our ************ ********, *********.

*********, * ***** ******* ****************** ******* ultimately ***** ** ******* ****************** *******'****** *******************, *** ********** ********* ** * key ****** ********** ** ******, ***** with *********** ********, **********, *****, *** TUTUM ****, ****** ************* **** *** former ****** ********* ** **** ** with * ***** ****** ******** **** Hanwha's ****** ********.

****** ********* ********* ** *****, *** *** ******** ** ***** America **** ********* ** ******* ****, "is ******* **" ******* *******:

******* *** ** **** ***** [** Souza] ** ******* ** ** ***** America ** *** **** *******, ** we **** ***** *** **** *******, the *********, *** **** **********, **** will ***** ** ** ****** **** our ***-**** *********, *** ***********, **********, obviously ******* ************, *** ** ** an ********* ******* ** *** **-**-****** strategy ******* *****, ** ****** ** to ******, ******* ******* *** ******** program *** ******** *** ******* ********* and *********** ** *** *****, ********, and *********. *** ******** ******* ** distribution ** *** *** ********* ** to **** *** ***** ** ******, we're ***** ** ** ** ******** through *** **** *******.

***-*****

******'* *******-******** ******* **** ************ ******* ******** *** *********; *** ****** manufacturer ******** ** ******* *** ********** projects ** ****** **** ****, ******* only **** ** ********* **********, ******, industrial/production, *** ***** ********** ** ** its *** ********* *******:

** ***'* ******* ************ ** *** projects, *********, *** **'** *** **** strong ******* ** *** ******* ******. I *** **** *** ****, **** the *********** ** ******** *******, **** the ****, **** ** ****–****, **'** had **** ****** ******* ** *** public/government ******, **'** *** **** ****** success ** *** ****** ******, *** also ** **** ** *** **********/************* projects **** *** ********* ** ******. Obviously, *** *** ********* ** *** United ****** *** ******* ** *****, there ** * *** ** ****** elements ** *** ******* ****** ****** say, *** **** ** ***** *******, although *** ***** *** ** *** Caribbean **** ************* ******* **** *** a *** ******* *****. **, * would *** ** ***** ** ****** to ***** ** ***** *********—**********, ******, industrial *** **********, *** ***** **********, those ***** ** *********—**'** *** * lot ** ******* **** *** ********* in ***** ******** *******.

******** ***** *** ******* *****, **** Latin ******** *-******** ****** **** ******** in ****** ** **$* *******, **** mentioned ** ****** ***-***** ** ****** in ****'* *************** *** ****** ************'* ****** ********. IPVM ******** ** **** *** ******* to *** ** ******* ***** (******** Luiza **** ******** ** ******) ** a ****** ****** ***-****:

* ***'* **** ** ******* *** customers ** ***. ** ** **** strong *-******** ******** ** ****** ** well.

******* ***** ** ****** * ****** end-user ** ******, ********* ** **** sources.

****** ******* *** **** ** ****** City's ** **** **** *******, ** IPVM ******************** ********. * ****** ****** ******** told **** **** ********* *** *** C5 ******* ********** *** **** *** implementation *** **** **** *** *** Korean ************'* ********:

[*]*** ******* [****** **** **] ** giving **** ******* *******.

******* ***********, ** ******** ******* *****, *** US ******** ***-**** *** ***** ******'* end-users ** ******, ********* ** **** sources. **** *** **** ** ******* Wal-Mart ** * ****** ***-****; **** a ***** *******-******* ******* *** ** seen ********** *** ********* ** *** photo *****, ***** ** * ***-**** in ******** ******:

Stable **** *** ****** ********

****** ******* * **** ** ***/*** exchange **** ********** ** ****** * favorable ****** ** *** ****** ********:

**** ***** ****, **** ** **** at *** ******* ** *** ******* market, * ***** ****** *** **** the ******* *******, *** *** *** challenges **** ******** **** **** **** FX *****, ******* ******** ***** ******* up ** ****** **.*:*, *** **** has ********** ***, **** ******, ** just *** ** **:*, *** ****'* been **** ******** *** ** ** we *** *** *** ***** ***** types ** ********* ***** ** **** that *** ***** ** **** **** emphasized ******* ****'** ********** * **** level ** ******* *** ** *** in **** **** *****.

*** *******, *** ***/*** ******** **** peaked ** ** ****, **** **$* buying ****** *** ** ** ***** April ****. **** ****, ***** ** 2020, *** ***/*** ******** **** *** roughly **** ** ******* ****** ** what ** *** ** ** ****, before *** ******* ********.

***** ******* ******** ************* **** ****** to **** **** *** ******** **** has *** **** * *** ************* during *** ********, ******** ** ******, where *** ***/*** ******** **** *** frequently ***** ** * ***** *******, particularly *** ***-***** *************.

Advantage: ****-*********, ******* **** **** *** *****

******** **** ** * ** ***, Mexico, ** * ******** ** *** US, ** **** ********.

****** ******* ** ** ** *** record ********* **** **** ***** *** Mexican ********, **** ******* **** "** is **** ********":

** ***** ******** ***** ****'* ********* to ****, ***** ****'** ****** *** ONVIF ********** ** ***** ****'** ****** for **** **********, ********* ** ** very ********.

* ******'* *** ** * ******* statement ***, * *****, *******, *** that ** *** ************* **** *'* outlining ** ***, ***** ***** *** end-users ** ************ ** ***** **** are ******** ***** *********, **'* ********* been **** *** ** ** ***** areas ******* ***** **** ***'* ****** are *** **********.

****** ** ******* ****** ** *** pricing, ***** ** ******* **** ********* than **** *** ********** ***** (*** German ************ ** ********* ****** ** be *** **** ********* ****** ***** locally, * ****************** **** ** ***** ****** *********** TVC).

Advantage: ************* ********* ** ******

****** ***** * **** **** ** US-based *********, ********* *** ********** ********* that *** *** ******** **** ******* the ** **** ** *** ********** Factory, *****'*, *-*-*, *** **** *****, Office *****, ****** ***, ***** ******, etc.

***** ****** *** *** **** *** companies ** **********, *** ****** ************ did *** **** **** ********* "**** a ****** *** *** *****" *** provide *** ******* **** ****** ************* to ******* *** ********** *** ********:

****, * ***** *** **** ***** are * **********, *****'* * ***** of ******* ***-***** *** *** ***** to ** **-***** ** ******-*****, *** are ********* ******** ** ******** ********* and *** ***** ** **** * higher *** *** *****, ** ****'** looking ** *** ***-**** *************. *** I **** *** **** ****'* * very ******* *********** **** ** ******* that **'** ******* *** ********* ***** are ***** ******** **** ** **** we're ***** ** **** ********* ** and ** ******* *** *********** ** compete *** **** *** ***** ******* those ***-**** ************* *** ***** ** less ** **** ***-**** ********* ***** with *** **- ** ********-***** [*********] or ****** *** ***-**** ****'* ***** to ** ******** *** ******-*** **************.

**** ********* ** ******* ******* ** NDAA **********, *.*. ************* ************ ** US *********, **** ****** ****** ***-**** Wal-Mart, *** ******** ** *** ***-****-********* video ************ ********, ********* ********* ****** with * *** ** *******.

Success: ******* ***********

** ****'********* *******'* ****** ********, **** ******** on *** ******** *** ************'* ***** relationship **** ****** ******* *** *** the *** ************* **** ********* ** sell ****** ******* **** ******* *** through ******* ** ******.

****** **** ** *** ****** ** highlight ******* ** * "**** ****** partner," ******* ******* **** *** *** are ***** "* *** ** ****" together ********** ***** *******:

********** ** ***** *******, ** **** very ******** **** *******, ****'** * very ****** ******* *** ** *** we *** ***** * *** ** work ******* **** *******, ****, **** strong *** ******* *** **, **********.

****** *** * ***** ************ **** Genetec, ********* ** * ****** ****** Mexico ********, *** **** ************* ** as "****" *** ********* ******* ***'* customizability *** **** *********** **** ******'* at-times-weak ******** ** *** ******* *** Genetec, ** **********, *** ******* ** a ****** ****** ******* *******.

****** ****** ******* *** *******'* ******* to ********* **** *****, *********, *** Huawei ** * ************** ***** **** highlighting *** ******** **** *** *** Milestone:

** *** **** ****** **** ***** VMS ********* ***, * **** ** make **** **** **'** ***** ** that, **'* *** **** **'** ********* others **** ****, ***obviously *** **** **** ******* *****'* ***** *** **** ** *** *****-**** ******* ** ** ********* ** ***** ******, ***** **** *** ******* **** ****'** **, ** **** * ******** *********. We work very closely with them, they also have, if you talk about Mexico, Genetec's a separate group than South America, right, they have it set North America and South America, so, in Mexico specifically, we have a very defined strategy with them, we know who in their ecosystem is very strong with them and we're working together through our STEP program to ensure that we're providing the best possible solution, and obviously if we know that we're working with Genetec, the integration is extremely tight for some of those Wisenet 7 features like AI. So we've seen very good momentum because of that. Now, I also just want to make sure that I mention to you that we also have very strong projects and relationships in Mexico with Milestone and also with ISS, those would be our key three enterprise VMS partners in Mexico and all of them have strong integration with us and all of them have strategy, we work very closely with all of them, but I think if you're talking to our ecosystem, which I'm sure you are, you'll know that there are important projects that we've won jointly with Genetec. [emphasis added]

*****'* ***** ************* ** *** ********* who *** **** ****-******* **** **. We ***** **** ***** **** ** our ****** ****** *** ******** **** Genetec, ** **** *********, ***** ** know **** ******* ** **** * joint ***** *********** ***** ** **** strong *** ********* ******* ******* ******** are **** ** ***** ********** *** compliant ********* ** * **** ********** way **** *** ******** ******* **'* very ******** **********.

Success: ****** ************

******* *********** ****** ** *** ** Hanwha's "*******" ************ *******, **** *** former ****** ****** ******** ******* ************** Syscom, ***** **** *******, ** "*** strongest" *** ******:

****** *** ****** *** * ******* relationship **** ****** ***** *******.

****** *** ******* *** *** ********* for ****** ** ******.

* ****** ****** ****** ******** ***** at ****** **** **** ***** ******'* importance ** ******'* ******* ************** ** Mexico, ******* **** ****** *** "*** best" ******* ** *** ****** *********** locally.

****** ************ ******'* *********, ****** *** Chihuahua-based ***********'* **** ****** ** "*****":

**'** **** ***** *** ******** **** all ** *** *** ************ ********. Syscom ** ********** *** ** ***** and **** **** * ***** **** office, ** ** * *** ** our ***** ************ ** ****[.]

*******, *** ****** *********** ***** **********, which **** **** ******* ***** ** the ****.

Success: *********** ***** ** ******

** **** ******* ** * *************** ******* *********** ***, ****** ***** from **** ** ****** **** ***** drastically **** *** **** **–** ******. Additionally, ******** ***** **** *********, ****** logistical ********.

******* *** ****** *** ******** ** the ********, ****** ********* **** ** has ******** **** **** ** **** stock *******:

[*]* **** ****** ************ ********, *** those ****** ************ ******** **** ****, very ******* **** ** ** *********** and ** **** **** **** ** meet ***** *******, **'** ***** *** best ** ********. *****'* ********** **** global ********** *** ********* ** *** guys **** **** ********** ** ****; however, * **** *** **** **** is *** **'* ** ********* *** us ** **** ******* **** *** stocking ************ ** ******** ***** *******. So, **'** **** **** ** ** very, **** **** ** *** ******** times ********* ******* ** *** ************ and *** **** **** **'** **** to **** ** *********** ***********. **** doesn't **** **** ***** ****'* ***** global **********, *** ** * *** to **** *** * ****** ******, the ****** ****** ** **********, **'** been *********** **** *** ******* **** closely **** *** ************ ** **** local ***** ** ******.

Challenge: ********

** ******, **** ** ******, *** channel ***** ****** ** *** ******* name ** **** ****** *******. ******** former ****** ********* **** **** **** Hanwha's ******** ********* ** ****** **** in ******, *** ****** ****** ****** employee ********** **** ** *** ********** continued ** "********" *** *** ******* name ***** *** ****** ***********:

*** ******** ** ******* ******* ****** was *******.

********, [**] ********* ** *** *** Samsung **** *** **** **** ******/******* in ******** *************.

*** ******* ***** ** ***** **** by ******, *** ** ******'* ******* distributors *******, ***** ********* ** ******* 'Wisenet *******' ******** ** **********:

******* ** * "**********" *****, ** acknowledged ** * ****** ******** **** Hanwha ** ******, *** ******* ****** that ************** ****** ******* ******* **** Samsung ** * ********* *** ** part ** *** ************ ** ******* products ********** *** *** **** ** a "****** ******" ** ***** ******'* brand *********:

*******, ** * ******** *****, ** a *** *****, ** * ********** brand. ********* ***** **. *** * think *** *** ***** *****, ***** Samsung ******** **** **** ****** ******, I **** **'** ******** ***** ****** now, *** *** **** ***** ** Brazil, *** ** ** ****** **** to *** ** *** ******** **** the *****, ***** *** *** ******* monitors, ** *****'* * ******* ***** of ******* **** ******* ***** **** had *** ***** **** ****** ****'* over *** **** **** ***** * strong ****** ** ******** ****.

*** ****** ***** *** ********** * total ******* ** ******, ********* ** a ****** ****** ****** ******** *** echoed ******'* **** ** ***** ********* and *** ****** ****** **** ****** faced ******* **** ***********:

** *** ** ***** ******* **** Hanwha.

****** ************ **** *** ***** ****** has **** **** ********** ** *** US *** ******, ********** ** ****** to ****'* ******** ********* *** ******** in ****** *** ********* **** *** brand ** '****** *******':

****** ******* ** *** *****. * think ** *** **** ** *** US ******, *** ******** ******, **** strongly *********** **** ***** ***** *** acquisition **** *******. *** ** *** not ******* *******. *** *** ********** that *** **** **** *** **** us [**** ****** *******, *****], **'** already ******* *** *** **** ** be *********. **'* ****** *******.

***********, **** ***** **** ****** ***** the ******** *******-**-****** ***** ******; *******, Syscom ** *** *** **** ****** Mexico *********** **** ***** **** *** Samsung ******** ** *** *******. **** also ***** '******* *******' ******** *********** displayed ** *** ******** ** ****** distributor ****:

****** **** **** **** ** ************ its ******** ********** ** ***** ******* and **** **** "**'* **** ** control" *** ******** ***** "**** ** countries" ** *** ****** *** **** resellers ** *****'* "**** ****** ******* with":

*** *********** *** **** ****... ** started ************* *** ** *******, ** co-branded **** ** ***** ******** *** division **** ** **** *** **** the ****** ** *****, ****, **** years, **'** ************ ************ *** ** the ******* ***** **** ** ***** America ********* ***** ****** ******* ** our ***** *** ******* ** *** security ***** *** *** *******, ******** or ********** **** ** ******, ** whether **'* * ******** *******, ******* it's * ******* ********, ******* ******, typically ** ***** ** ******* ******* because ** ********** *** ******** ******** within ******.

** *** ** *** ***** *******, again, * ***** ** *** *** appreciate *** **** **** ** ***'* sell ******** ** ***-*****, ** *********, or *********** ***at ***** ** ** **** ** ******* **** **** *********** ** * ****** ******. So, with 50,000 resellers, maybe more, then you talk about the end-users, we only transact with seven, actually around 10 distributors here in the US. So it's easier to control the message, the policies, practices, the brand guidelines with our distributors and to a certain degree the resellers in our STEP partner program. Beyond that, it's **** ********* ** ****** * *** ** ******, ********* ********, ******** ********** *** *****. * *** **** ******* ****** ***** ******* ** *****, **'* **** ********* **** **** ** ********* *********** ** ***** ******* *** ***'** ******* ***** ********* *** ***-***** *** ****** ** ***'* **** ****** ******* ****, **'* **** ** *******, again the specific branding, the messaging, and this is an example of that. So, are we allowing them, are we continuing to promote Wisenet Samsung? No. It just so happens that, as Jason mentioned, this is something that we need to correct. So, as this comes up, as this gets brought to Jason's attention, we'll address it and we'll make the correction, we'll make the request to have it corrected, but there isn't any intention to promote Hanwha Techwin as Wisenet Samsung. [emphasis added]

Resolving ******** *******: *******

****** ********* **** ** ** ******** to **** *** '*******' ***** ** an ****** ** ******* *** ******* branding *******, ******* ** **** ************** ******'* ****** ******** ******:

We're ******** *********** ******* ** *** ******. So, Wisenet, Wisenet 7, our chip set, that is really a big part of our brand in Latin America and what we're doing to continue to promote the brand, to continue to get Hanwha out there is we're really taking an approach to educate our ecosystem on our brand and our positioning, not just Wisenet and what we do in intelligent surveillance, but also the innovation of some of our sister companies like Qcell and Hanwha Defense and some of the great things that they're doing in innovation around the world. A lot of our customers are surprised when they find out that we're a $60 billion global company that's got a lot of relevance in so many different parts of the world... [emphasis added]

****,we're ****** ******* ***** ******* * ** ** ********** **** *** **** *** ** * *** ****. We're also highlighting what Hanwha, the parent company is. And when we start to talk about innovation and South Korean innovation and what Hanwha does in the solar panel market, what Hanwha does in the defense market, we're providing, as part of the onboarding and as part of the branding in our STEP program, a lot of the information of what partner are you dealing with, it's a $60 billion global company that's making a difference in the world... [emphasis added]

****** **** **** **** ** ******** that "****" ** *** ******** *** end-users **** *** **** *** *** that **** *** ************ ********* *** Hanwha *****:

**'** ******** ** *** ** ********* most ** *** *********** ******** ***** surveillance ******** *** ***-***** **** *** we ***... **'** ****** ** *** to **** ****** ** ***** ******* through * ****** *****-******* ******** *** we're ******** *** **** ** *** camera *** **'** ******** ** *** entire ******** *** **** **** **** of *******, ******, ***'** ******** ** do ******** **** ** ****** *** understand **** ***** *** *** ** are ****.

*******, ***** ** *****, ******'* *** Latin ******* **** *********, ********* **** the ******** ******* **** ** ******** "this ****":

* **** **** ** **** ********* in ******* **** ***, **** *'** tell *** **,this **** ** ***** **** ****. I can't speak to the past, I wasn't here then, I know in the US and Europe they've been able to execute very successfully, but we are taking this very seriously and I can assure you that we are taking steps to ensure that that branding is very clear. I wouldn't want to make any other comment on it at this moment. [emphasis added]

Challenge: ******** ** ** ***** **********, ***** **** ********** ** ***** *******

****** ********* ********* ************ **** "*****-**** manufacturers" *** ** **** ** ** ongoing ********* *** *** ******* ** Mexico:

**** *** **** ** *** *********, Americas ******, ***'* *** ******* **** you **** ** *****, **** ** you ******* *** ********* ** *** of ****,NDAA, *** *******, ** *** ****** ****** *** ****** ********, ***'** *** **** ** *** * *****-****, ***-**** ******* **** ***** *******. * ******* **** ** * ****** ** ****, *** ********** **** **** ***** *****-**** ************* ** **** ********** ** *** ****** ******, which is really contributing to that price erosion, especially in volume projects. [emphasis added]

* ***** *** *** ******* ********* that ** **** ***** **** ****** is ***** ******* ** ***** ******** where *** ***-**** ************* *** *********.

******* *********, *.*. ********* *** ***** being **** ********** ** ********* ***** solutions, ****** *********, *** ***** ***** marquee ********, *** ********* ** **** by ******** ******** ************* ********** ******.

Challenge: ** ****** ********

****** *** ** **-******* ********, ****** competitor ****,***** *** **-******* ******** ** ************* ******** ************ *********** ** **************.

****** ********* **** ** *** ** plans ** *********** ** ******, ****** that ***** ** "******* ** ***** of ** **** ****:"

******* ** ***** ** ** **** time, *** **** * *** **'** investing ** *********, **'** ******* ********* about **********, *******, *** *********** ********* for *** ********. ******* ***** ********** and *********** *********.

**'* **** ***** ******** *** *****/*********/*********** resources *** *** ** **** ************* resources.

Challenge: *********/******

****** ** *** ** ******'* ******* distributors ** ******, **** *** ****** Hanwha ******** ************ ***** ********** ** the ****** ************'* ****** ********:

****** *** ******* *** *** *** distributors **** *** ********, *********, *** storage ********.

********* *** ******** * ***** ***** in ******, ****** ************ ****. ****** **** **** **** the ******* *** "** *******" ********* the ********* ****; *******, ******, ** Hanwha *** ************, ** *** ** its "*******" ************, **** * ****** in-country *********/******/******* ******* **** *** ** Hanwha's ***** ************.

***** ******* ** * *********** *** owned ** **** ** * ****** competitor ** * ********* *** **** for ****** ** *** ***** ****, as ********* ***** **** ****** ** prioritize ********* ***** *******.

Challenge: ***** *******

****** *********** ***** ******* *** "***-**** competitors" **** ***** ***** *** ********** that ** ***** ** ******:

*********, ***** ******* *** **** ** those ***-**** *********** ** * **** price-sensitive ********* *** *** ***** ********** that *** **** ** ******. ***** is ********** **** ********* *** *****'* price *******.

**** ********* *** ****** ** * former ****** ****** ********, *** ****:

** ******, ***** ** ** ***** to *** ****, ********, *****, *** Hanwha.

*** ************ ** ******* *********** ***,********** **** ******* **** *****, *** said:

********** ***** [** ******] ** **** less **** ** *** ** ** Europe.

Challenge: ********** ******* ****

******* *************é* ****** *ó*** *******(********) *** **** * ********* ** austerity *** ****** *********, ** ************* ******* ****. ** ****, **** asked ***** ********** ******** ** ****** that ***** *** ** *********** ** industry ************* ** *** ** ** Europe, ****** ***** ** ******* **** and *** **** **** *** ******* government *** *** ******** **** *** levels ** ****** ******** ******** **** in *** ** *** ****** (** even ** ******):

There **** **** * *** ** **********/****** ******* ****, which have, in the past years, which have affected the Mexico business, whereas if you contrast that with the US or Europe where you've seen a huge amount of public spending over the past while to assist and infrastructure operates and everything, so a lot of the comeback of the economy is coming from the government and in developing nations that may not be an option to that. [emphais added]

***** *** **********/****** ****** ********'* ********** to ******'* ******** *******, ***** ******* cuts *** ******* **** ** *** Korean ************ *** ******** *** ********* projects.

Challenge: ******** *** ** ****

********** ******* **** *** * ********* for ******'* ****** ********, ** ********* in *** ******** *******.

**** ***** ***** ******** ***** *** on **** ****** *** ********, ****** told **** **** ************* ****** ** common **** *** ******* ********** * special ******* ****** "*******" **** *** pipeline:

**********.We ******** ********** ** *** ******** ********* ****** '*******' *** *** ******** **** **** ******, ***** *** **** ****. So, when you have, when you're looking backwards, if you look at the swing, when you bring up Brazil, I mean the swing was really big, but even Colombia with what's been happening in Colombia recently, specifically to Mexico, yes there are absoultely funding that's frozen, there were projects that were on hold, and we are seeing that there could be definitely some of those gates that open up. The answer is yes, that was happening, yes, we were taking that into consideration, and as you mentioned in the setup of the question, as people are getting vaccinated, as things start to open up more, as we see more business flowing, we fully expect a lot of those projects to become active again. [emphasis added]

****** ******* ** *********** ** *** response ** ****, **** *** ***** that ********* ** ***** *******, ********* in ******, ****** ***** **** **** diverted **** **** ******* ********, ********* in ***** ************, *** ******* ******* procurement.

******** ****** ** ********** ***** ******** becoming ****** *****, * ******** ***** wave ** ****** *** ** *** Gamma ***/** ***** ******** ** *** coronavirus ***** ****** ** ******* ******* delays.

Challenge: ******** ****** ************

***** **** ********** ******* ****, ****** also ********* ********** **** ******* ****** requirements ** * *******-******** ********* **** might *** ** *********** ** ******** professionals ** *** ** ** ******:

*** ** *** ****** **** ****** have * ***** **** ********* ************* are **** ** *** ****** ************... NOMs [****** ********* *********, ** ******** ******* *****, **** pictured], ************* **** ** **** *** ** import *******, **** *** ** * challenge *** *** ************ ********. ***** product **** ***** ** *** ** have * ******* ***** ** **, it's *** ** ** ********, **** have ******* ***** **** *** **** to ******** ** ***** **** **, these, **** ** *** ******** *** over *** **** ****** ** ***** where ****'** ********* **** ** * lot. ** * ***** *** **** import ***********, ************ ****, *** **** a *********.

***********, *** ********* **** ***** ******** professionals ** **** *********** **** ****** is ****** **** *********** **** ******, with *** ****** ****** ********, ** particular, ******* **** ********* **** ****** from *** ** ** * ********** straightforward *******:

** ******, *** ***** **** ** very ****, *** [*******] ******* ** more **********.

***** *** *.*.’* ********, ****** [** Mexico] *** **********, ** **** **** importing **** *** *.*. *** **** years.

Disadvantage: ****** *** ** ***** ****** ****

****** ****** *** ** *** ********* fever ****** ****** ** ****, **** one ****** ****** ****** ********, *** still ***** ** ***** ************, ********* that *** ****** ************ *** *** ready ** ********** ** *** ****** due ** ****** ** ********* **** Mexican *****:

**** ****, [* ***-***** ************] ***** *** *** ******* ******* in ****** ******* *** ******* *** not ********** *** *** *** **** submitted ** *******. ** ******, ******* that ******* **** **** ***** ****** per ******, **** ** * ******* camera, *** *** ********* ******** ***. Hanwha *** ** *** **** ****; however, *** ******* **** ***** ** the ********* *******.

*** ********* ******* ***** [* ***-***** ************] *** ****** * *** ** work, *** **** *** ********* ** market ******* *******, *** *** ****** has ******* ****.

***** *** * *** ** **************, the ******* **** * ****** ******* marketing ******** ** ****.It *** * ***** **** *** ** **** **** *******. [emphasis added]

* ******* ********* *** ********* ** IPVM ** * ****** **** ****** employee ** *** ************* ****'* ****** ********.

****** ******** ** ******* ** *** sales ** *** ************* ********* ** Mexico; *******, *** ********** ******** **** Hanwha ** ****** ********** *** ******* fever ****** ******, ********** **** *** company ****** *** ** ******* ***** its **** ** ***** ****** ***** in ****** *** ********** **** *** Mexican ********* ******* *** ****** * non-factor ****** *** **** ** ****** fever ******* ** ****** ** ****:

**** *** **** ** **** ********, I ****** **********, **** *** **** at *** ** ***** ******* *******, how **** ** **** ** **** and *** **** ********* ****'** *** sitting ****** ******* * *** ** the ******* ****** ******* *** *****-****, wall-mounted ************ *** ***** ******...

*** ******* ****** *** ******* ** market ** * *** ******* **** period **** [***] ******* ******* *********** cycle. *** ******* *********** ***** ****** this ******** ** *** ***** *** or *** ******** ***** **** **–** months. ** **** *** ********* ** less **** * ****...

** ****'* ******* ** **** ** the ***... ** ****'* **** ** do **** ****.

Future ******* ****

****** ******* ** **** ** * multi-billion-dollar ***** ****** ************, ** ********* in *** ******** ******* *****.

*** ** ******'* ****** ********* ** Hanwha *******, *****, ** *** **** suggests, ***** ** *** *******/******** *****. Given **** **** *** ******* ****** with *** ******* ********** *** ***** with ****** *** ****'*********** ******* ******, ** ***** ****** about *** ***** ******** ** ****** or *** ***-*** ** ****** ******* Hanwha ******* *** ****** *******. ****** confirmed **** ****** ******* **** *** work **** ****** *** **** ** does "******* *** ****" ** ***** Hanwha *********, ********* ****** *******, "***** it ***** *****":

*** ******** ** ****** **** ***'** mentioning, *** * **** ******* *********** in ****** **** ****** ** ** around **** ******* *** ****** ******* group **** * *** ** **** specific ************, **** ** *****, **** do ******* ******* *******, *** **** do **** ******; *******, *****, ******** they *** *** ********** **** *** company, **** ** *** *** ********. Typically, *** ****** ******* ******** ***** G2G, ********** ** **********, ** ******* very ******** ************, [**] ******'* ****** be **** ** ***** ***** ***** types ** ************ ******* ****'** *** part ** *** *********, **** ****, yes, **'** **** ***** **** ***** are ************ *** **'** **** ** obviously ******* *** **** ** *** sister ********* ***** ** ***** *****.

Hanwha *******, ** ***'*, *******, ** ***'* **** **** ****** ** ***** ***** ** ************ *****. [emphasis added]

2021 *******

******* ***** * ***** ****** ****** a **** ** **********, *********, *** not ******* **, *** **** **** Hanwha ******* ** ******* ** ******** than *********** **** *** *****, ****** confirmed **** *** ******* *** ****** is "**** ********" **** "** ********* strong ********" *** "****** ******* ********":

** **** * **** ******** ******* for ******. ** **** ** ********* strong ********, * *** ** ********, there ** ********** **** ****-** ****** that **** ******** ** ******** ****** over *** **** *** ********. ** are ****, **** ******** *** ****** over *** ****, ** ***** *** this ****. ** *** *****, **** experts, **** ******** ******** *** ******* strong, ** ** ***** * ****** say, ****** ********* ** *** ****, which, ** *** *********, ** ********** important. * **** *****, ********* **** happened ********. *** ** ***, ** are ****** **** *** ****** ******* activity.

****** **** **** **** ******* ****** sector ******* ****, *** ******** ** the ******* ****** *** ****** ** the *****:

* ***** *** ***** **** ** important ** ******* ** ***** *** been **** ****** **********, **** **********-******, they've *** **** ** ***** ********** funds *** ****** **** **** **** in ******, *** ** *** ****** a *** ** ****** ******** ** the ******* ****** ** ****, ** we ***, ** **** * **** strong, ******** ******* *** ****** *** the ******* ** **** **** *** the ******** ** ******* ****.

**********

*********'* ******** ** * ***** ** key ****** ****** *********** ******, ***** with ** *******, ********** ******** ******** problem, *** ***** ********** ****** ****** in *** ****** **** ** **** and **** ****. ***********, ****** *** potentially ******** *** *********/****** ********* ** adding ************ ** ********* *** ************* with ******** ************. ******'* ********* ** the ** *** *** ** **********'* anti-Dahua/Hikvision ****** ***** ********** **** ****** in ******, ** *** ****** ************ is **** ** ******* ****-********* ******* at * ***** **** **** **** and *****, *** *** ***********.