TOP 100 LATIN AMERICAN ELECTRONIC SECURITY INTEGRATORS • 2022

Electronic Security Industry in Latin America Outlook 2022

LATIN AMERICAN

INTEGRATORS ELECTRONIC SECURITY INDUSTRY

REPORT

2022

STATE OF ELECTRONIC SECURITY TECHNOLOGIES IN LATIN AMERICA 2021 PERSPECTIVES FROM INTEGRATORS AND CONSULTANTS RANKING TOP 100 INTEGRATORS ECONOMIC OVERVIEW OF THE REGIONS OF LATIN AMERICA CYBERSECURITY IN LATIN AMERICA

© Latin Press, Inc., 2022 All rights reserved. No part of this work may be reproduced or incorporated into a computer system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of the copyright holders. Infringement of such rights may constitute an intellectual property offense.

Original title: TOP 100 Latin American Integrators Electronic Security Industry Report 2022.

3rd edition: January 2022 Research and writing: Andrea Ochoa Restrepo Editorial Direction: Duván Chaverra Layout: Jhonnatan Martínez Avalo Graphics: Jhonnatan Martínez Avalo Cover Photos: Pixabay

Table of Contents Top 100 integrators in Latin America: How is it done?............................................. 6 Introduction........................................................................................................................................................8 Chapter 1: State of electronic security technologies in Latin America 2021-2022.................................12 Main segments of electronic security projects in 2021 ......................................................................................14 Evolution of the electronic security market 2019-2021......................................................................................16 Imports by region and companies ....................................................................................................................17 Top electronic security brands most used in Latin America in 2021-2022.........................................................18 Imports by country of origin...............................................................................................................................19

Chapter 2: Integrator Perspectives................................................................................................ 22 Mexico.................................................................................................................................................................23 Central America and the Caribbean...................................................................................................................26 Andean Region....................................................................................................................................................29 Southern Cone ...................................................................................................................................................34 Consultant Perspectives......................................................................................................................................38 Questionnaire Academics...................................................................................................................................44

Chapter 3: Ranking Top 100 Integrators 2021.............................................................................. 48 Mexico.................................................................................................................................................................50 Central America and the Caribbean...................................................................................................................53 Andean Region....................................................................................................................................................55 Southern Cone....................................................................................................................................................59

Chapter 4: Rising freight and cargo prices: why? ........................................................................ 62 Chapter 5: Sectors and companies facing COVID-19: impact on the electronic security industry... 66 Productive structure: external and internal gap in the region and its effects after the pandemic.....................68 Comparison between Latin America and the European Union: relative internal productivity...........................69 The proportion of production of different groups of industrial sectors according to the intensity of the expected impact of the crisis..............................................................................................................................69 Impact of covid-19 on the different segments of electronic security projects in Latin America................................. 70

Chapter 6: Overview of Latin American economies (pandemic-post-pandemic)........................ 78 Financial Market Volatility Index.........................................................................................................................79 Emerging Markets Bond Index 2020..................................................................................................................80 The year-on-year rate of change in world trade volume.....................................................................................82 GDP growth in Latin America.............................................................................................................................84 Expenditure growth by component in Latin America.........................................................................................84 Future Outlook....................................................................................................................................................85 Inflation expectations 2020 and 2021.................................................................................................................87 Impact on the level of investment and capital flows in relation to the risk of financial markets within the electronic security industry.................................................................................................................................88 Infographics: Exports and trade balance Mexico and Central America 2020 ...................................................89 Mexico, Central America, and the Caribbean ...................................................................................................90 Infographic: Exports and trade balance South America 2020............................................................................97 Andean Region....................................................................................................................................................98 Southern Cone..................................................................................................................................................102

TOP 100 INTEGRATORS • REPORT 2022

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Table of Contents Chapter 7: Cybersecurity in Latin America: Growth and Main Threats..................................... 106 Market Developments.......................................................................................................................................109 Main threats to cybersecurity growth...............................................................................................................110 Official estimates of data fraud and cybercrime...............................................................................................112 Country-by-Country Cybersecurity Overview ..................................................................................................113

Chapter 8: Growth in the electronic security systems market.................................................................128 Revenue Growth and Demand for Security Equipment....................................................................................131 Revenues in the video surveillance market.......................................................................................................133 Overview of electronic security in corporate and residential markets .............................................................134 Index of references..........................................................................................................................................136

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TOP 100 INTEGRATORS • REPORT 2022

5

Top 100 most recognized integrators in Latin America: How is it done?

Ventas de Seguridad wanted to highlight again in 2021 the work of integrators in the region for the growth of the industry, so we took on the task of making the Top 100 integrators with greater RECOGNITION in Latin America.

The ranking of RECOGNITION born as an initiative that have also successfully made other international economic media, which, through information collected on each company and a vote, highlight some of the most important companies in the region or the countries to which they belong.

Each year we consult several sectors, including manufacturers, distributors, as well as the bulk of our readers (consultants, technicians, end-users, operators, among others) throughout our Latin American region, who, in the end, was in charge of legitimizing this work and contributing to the recognition of these companies.

It is therefore important to highlight the methodology implemented for this report. A complete compilation of information was made in order to consolidate a list of 100 of the most outstanding companies in Latin America, divided into four sub-regions (Mexico, Central America and the Caribbean, the Andean Region, and the Southern Cone). For this point, the postulation made by manufacturers and distributors

6

of many of the most prestigious brands in the field of electronic security was taken into account, as well as detailed monitoring by the journalistic team of Ventas de Seguridad, relying on expert consultants and professionals with extensive knowledge of the industry.

Subsequently, through an online survey conducted with our readers, the 100 companies were ranked and placed in the ranking, divided into 30 companies from Mexico, 15 from Central America and the Caribbean, 35 from the Andean Region and 20 more from the Southern Cone.

This ranking and placement also took into account differential elements such as years of experience in the industry, certifications, the number of employees, headquarters, and membership in associations and/or industry associations in the region. In other words, of the total percentage published in the ranking, 40% of the value is given to the number of votes obtained and the remaining 60% to the differential elements mentioned above.

The list includes information on the segments served by each company and the percentage of recognition.

You can also nominate your company by writing to editorial@ventasdeseguridad.com.

METHODOLOGY 1

2

COMPANY IDENTIFICATION AND APPLICATION

COLLECTION OF INFORMATION FROM COMPANIES:

Mexico

30

Central America

15

Andean region

35

Southern Cone

20

Years of the company

15%

Number of employees

15%

Company headquarters

15%

Associations and / or company Recognition survey done by readers of

100 COMPANIES

60% 15%

60% corresponds to differential elements of the company

3

4

VOTES RECOGNITION

RANKING AND / OR LOCATION OF COMMERCIAL INFORMATION ACCORDING TO THE ABOVE VARIABLES.

40% Appreciation survey done

by VENTAS DE SEGURIDAD readers

40%

100%

TOP 100 INTEGRATORS • REPORT 2022

7

Introduction The global economic outlook continued to weaken during the last two years as a consequence of the COVID-19 pandemic, the trade tensions between the United States and China, the confusing evolution of the European Union affected by Brexit, and the slowdown of the German economy as the increase in risk aversion in the financial markets, which is reflected in low levels of long-term interest rates in the bond market and the inversion of the yield curve.

Thus, investment has been losing dynamism in the world despite liquidity and low-interest rates. This is directly related to the current level of uncertainty.

The current scenario also presents the following challenges for the industry mainly due to the economic and social circumstances that several Latin American countries are going through. However, as will be seen in this report, Integrators have been able to sustain and move forward with their business, adapting to the new normal and facing the harsh measures imposed by governments to try to contain the pandemic, also facing market volatility, decreased demand, falling trade, capital flows, economic deficit, financial instability and investment risks because of the current situation.

In the face of these variables that have a considerable impact on the global economy, in 2020 the rupture in the agreement to cut OPEC+ crude oil production due to the oil war between Saudi Arabia and Russia was added, which together with the decreased world demand due to the Covid-19 implied a plunge for the Brent reference, which between March 6th and 9th of that year was 24%, which led to a certain quietness in the markets. These two shocks have generated fear in the financial markets and led to changes in international capital flows and exchange rate depreciation, especially in emerging economies.

In addition, some companies in the industry, in the midst of the crisis, have created outstanding projects, which are taking into account digital development for education, telework and telehealth, which generates an increase in demand for services and equipment, key global trends in the industry, which strengthens sustainability, efficiency, and connectivity.

In 2020, the world economy experienced its worst economic contraction since the 1930s, due to the measures put in place by governments to deal with the SARS-CoV-2 pandemic (COVID-19). According to the United Nations Department of Economic and Social Affairs (UN DESA, 2021), the world economy will contract by 4.3% in 2020, 0.9 percentage points less than the forecast of -5.2% published in September 2020 which affected the industry AV, forcing many companies in the sector to transform their services.

8

In this regard, Claudio Patiño, an expert consultant in electronic security, said: “Most companies in Latin America have stopped investing in security systems, which has led to an economic and technological recession”.

Faced with this, he added that the industry is “full of challenges to recover the market, and must be much more competitive in quality, price and customer service”.

According to the Economic Balance of Latin America and the Caribbean prepared by the UN Economic Commission for Latin America and the Caribbean (ECLAC): “In terms of economic growth, in the economies of South America, GDP fell in the first three quarters at a

rate of -7.7% year-on-year, compared to growth close to zero in the same period of the previous year.

llapse recorded in 2009 during the global financial crisis (-13 %).

The economies of Central America went from 3.2 % growth in the first three quarters of 2019 to a 5.9 % contraction in the same period of 2020. If Central America and Mexico are taken into account, the drop in growth in the first three quarters of 2020 is 9.2 %, a figure 9.6 percentage points lower than in the same period of 2019”.

Likewise, in the exchange market, the current account deficit caused by the decrease in exports has been worrying. However, ECLAC expects the region’s current account deficit to decrease significantly (to 0.4 % of GDP from 1.8 % of GDP in 2019) due to the sharp contraction in imports.

According to data provided at the beginning of 2021 by ECLAC, the volume of world trade in goods had a fall of around 9 % in 2020, lower than the co-

A 14 % reduction in volume terms is expected. The value of the region’s exports would contract by 13%.

Export prices are expected to fall by 7% and export volumes by 6%.

Rate of change in the volume of world trade, 2005-2020 (Percentages) 25 20

-15

-25

2020

2019 -0,5%

-10

-20

2019

2018

2016

2015

2014

2012

2011

2010

2009

2008

2007

2006

-5

2005

5 0

January 2017 to December 2018 4.1%

July 2011 to December 2016 2.0%

2013

10

2017

January 2005 to June 2007 7.6%

15

April - October 2020 -12.7%

January 2005 to June 2007 -17.2%

Note: The 2020 figures correspond to the average year-on-year change for the first 10 months. The red and green horizontal lines correspond to the average annual growth for the period.

Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on figures from the Netherlands Bureau of Economic Policy Analysis (CPB) [online] www.cpb.nl.

TOP 100 INTEGRATORS • REPORT 2022

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In order to mitigate exchange rate volatility, the region’s central banks have adopted various exchange rate measures, including greater intervention in the markets, through the purchase or sale of foreign currency, but also through regulations to regulate financial flows.

In countries such as Brazil, Chile, Colombia, the Dominican Republic, Guatemala, Jamaica, Mexico, Peru and the Dominican Republic, an increase in the amounts allocated to foreign exchange market interventions has been announced, as well as a broadening of the horizon of such interventions.

In addition, the authorities have used various instruments to provide foreign exchange liquidity, such as forwards and swaps, which has had a significant impact on the VDS industry.

Similarly, fiscal policy has become the most important tool used by countries in the region to address the social and economic effects of the pandemic.

This has been reflected in tax relief, public spending,

and liquidity measures for the productive sector, which have influenced the behavior of public accounts during 2020.

The financial instability generated by the pandemic in international markets and the uncertainty about commodity markets led to strong exchange rate corrections and, in the first three quarters of 2020, the region’s currencies experienced considerable fluctuations.

For ECLAC, “most of the region’s currencies depreciated against the dollar, thus maintaining the trend observed in 2019. Thus, in the first ten months of 2020, 17 of the region’s economies recorded depreciation of their currencies against the dollar rate at the end of 2019, and the average depreciation was 16.3%.”

For 2021, forecasts made by ECLAC indicate financial conditions similar to those of the second half of 2020, in which countries have continued, in general, with access to financing on favorable terms. In addition, possible currency depreciation in the face of a lower

TARGET AUDIENCES • Entrepreneurs in the electronic security industry.

• Manufacturers and distributors of electronic security equipment.

• Market analysts and researchers.

• Government and financial institutions.

• Investors.

• End users of electronic security equipment.

risk appetite will exert pressure especially on those countries with higher levels of foreign currency debt.

Additionally, for this 2021- 2022, the report includes new chapters: “Rising freight and cargo prices: What is the reason?”, “Sectors and companies facing COVID-19: impact on the electronic security industry”, “Cybersecurity in Latin America: growth and main threats”, “Industry forecasts until 2025 of economic entities”, “Overview of corporate and residential markets in relation to the integration of security systems”.

It is worth noting that the report Top 100 Latin American Electronic Security Integrators in 2021-2022 analyzes how this economic outlook would impact the industry, country by country, from the perspective of the integrators that are part of this Top 100 made by Ventas de Seguridad.

In addition, it addresses key industry information, such as import figures made by companies in each country, the most used brands of equipment in the region, the segments with the highest investment in electronic security, even sales figures of several of the companies, along with detailed contact data on the companies that are part of the ranking of 2021 are also in this report.

The business situation and large-scale responses, the productive structure (external and internal productivity gaps in the region), and the differences in performance between the different segments will be discussed in depth. In addition, the prospects and level of investment for the sector are analyzed, country by country.

Other key aspects of the industry are also developed, based on the growth of the market during the last year, originated by the acquisition of electronic security systems.

Readers will also get a complete overview of the electronic security industry in Latin America, as well as comments and recommendations on technology trends and investment opportunities.

MAIN SEGMENTS OF PROJECTS IN LATIN AMERICA 2021

17,3%

15,5%

17,3%

16,4%

16,4%

17,3%

CORPORATE COMERCIAL EDUCATION & GOVERMENT INDUSTRIAL RESIDENTIAL HOTEL & AIRPORTS Source: Survey conducted on an online platform among Latin American integrators of the TOP 100 Electronic Security with a closing date until October 30, 2021.

TOP 100 INTEGRATORS • REPORT 2022

11

CHAPTER 1

STATUS OF ELECTRONIC SECURITY TECHNOLOGIES IN LATIN AMERICA 2021 For integrators, most of the current electronic security technologies fall into the category of “Innovative” as is the case of video surveillance that has been implementing this type of technology.

It should be noted that these maintain traditional technologies, but in comparison are greater “innovative”, this may be due to the integration of systems in digital education, teleworking and telehealth that have strengthened the tools and has forced to invest more in innovative systems and with greater tendency to increasing implementation.

According to the integrators, “the leadership in innovation is taken by video surveillance systems, which have shown a significant evolutionary behavior in this post-pandemic era, followed closely by access control systems. Now there are more traditional systems, which in my opinion are more than well regulated and therefore do not suffer such a strong innovation as Fire Detection systems and Intrusion Alarm systems, which have demonstrated their efficiency and capacity over time. And systems such as Shoplifting Prevention systems (Antennas anti-theft of merchandise) that need a reengineering of the same”.

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STATUS OF ELECTRONIC SECURITY TECHNOLOGIES IN LATIN AMERICA 2021 VIDEO SURVEILLANCE

ACCESS CONTROL

Drones

Facial recognition

Data Mining

Video analytic

Proximity cards

Biometrics

Digital video

Video intelligence

ALARMS

CYBERSECURITY

Intrusion alarms

Artificial intelligence

3D technology

Fire

Source: Survey conducted on an online platform among TOP 100 Latin American integrators between September and October 30, 2021.

Traditional

Obsolete

System integration

Innovative

TOP 100 INTEGRATORS • REPORT 2022

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MAIN SEGMENTS OF ELECTRONIC SECURITY PROJECTS IN 2021

The corporate, education-government and industrial segments had a significant increase in market share during 2020- 2021 considering all of Latin America.

Despite the impact caused by the pandemic, several projects were able to be developed in different segments. This can be reflected by the implementation of equipment, artificial intelligence, among others, necessary in the field of cybersecurity and teleworking. It is worth noting that security systems became more relevant for the corporate, government, and education sectors due to the risks and cyber threats caused by the migration to the virtual.

It is notorious that most of the integrators serve all

14

segments, proof of this is the homogenization of the percentages in the regions. In the case of Mexico and Central America, as well as the Andean region, the corporate segment is the most served, the difference then occurs with the Southern Cone where this segment is the weakest in the execution of projects of security integrators.

In conclusion, there are opportunities in all segments since the vast majority of integrators actively participate in all of them. However, it is important to note that in Latin America there is an increase in participation in the residential, hotel, and airport segments.

MAIN SEGMENTS OF ELECTRONIC SECURITY PROJECTS IN 2021 MEXICO, CENTRAL AMERICA AND THE CARIBBEAN

15.2%

ANDEAN REGION

17.4%

14.6%

15.2%

19.5%

14.6% 17.4% 19.5%

17.4%

14.6% 17.4%

17.1%

CORPORATE INDUSTRIAL RESIDENTIAL HOTELS AND AIRPORTS COMMERCIAL EDUCATION AND GOVERNMENT

SOUTHERN CONE

13.0%

* Source: Survey conducted on an online platform among TOP 100 Latin American integrators between September and October 30, 2021

CORPORATE EDUCATION AND GOVERNMENT INDUSTRIAL RESIDENTIAL HOTEL AND AIRPORTS COMMERCIAL

ALL LATIN AMERICA

17.4%

15.5%

17.4%

17.3%

16.4%

17.3%

17.4%

17.4%

17.4%

COMMERCIAL EDUCATION AND GOVERNMENT INDUSTRIAL RESIDENTIAL HOTEL AND AIRPORTS CORPORATE

16.4%

17.3%

CORPORATE EDUCATION AND GOVERNMENT INDUSTRIAL RESIDENTIAL HOTEL AND AIRPORTS COMMERCIAL TOP 100 INTEGRATORS • REPORT 2022

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EVOLUTION OF THE ELECTRONIC SECURITY MARKET 2019-2021 MEXICO, CENTRAL AMERICA AND THE CARIBBEAN

SOUTHERN CONE

2019

2021

2019

35.0%

30.0%

30.0%

25.0%

25.0%

20.0%

20.0%

15.0%

15.0%

PO

SI

A

D

IR

EN

ST U D

LS

&

RE

IN

RT S

L A TI

A RI

EN

TE O H

O ED

U

CA TI

H

ALL LATIN AMERICA 2019

2021

2019

2021

30.0%

40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%

25.0% 20.0% 15.0% 10.0% 5.0%

PO RT S

L TI A H

IR

O TE

LS

&

A

ID RE S

ST R U D

EN

IA

L

T EN

G O & O N

IN

M CO CA TI U

H

VE RM

ER C

IA L

O RA TE CO

IR A LS

&

RP

PO RT S

L TI A SI D

RE

U ST D IN

EN

RI A

L

O TE

ED

ED

U CA TI

O

N

&

G O

VE

CO M

ER

RM

CI

EN

A

L

T

0.0%

O RA TE RP

RM VE O G

& N

TE O

N O CA TI U ED

ANDEAN REGION

CO

T

L A CI M

CO

LS

&

CO

A

RP

IR

O

PO

ER

RT S

A TI RE

IN

SI

D

D

U

ST

EN

RI

EN RM VE

&

G

O

CO

A

T

L A CI ER M

O RP CO

RA TE

0.0%

L

0.0%

L

5.0%

RA TE

5.0%

L

10.0%

10.0%

16

2021

ORIGIN OF IMPORTS OF ELECTRONIC SECURITY EQUIPMENT IN 2021 MEXICO & CENTRAL AMERICA USA CHINA HONG KONG FILANDIA MEXICO SPAIN FILIPINAS TAIWAN BRAZIL COLON ZONE

3,9% 4,0% 4,0% 4,1% 4,3% 4,6%

35,2%

5,7% 7,4% 26,3%

ANDEAN REGION CHINA USA SPAIN BRAZIL MEXICO

7,4% 8,1% 10,1% 47,9%

26,2%

SOUTHERN CONE CHINA USA BRAZIL VIETNAM MEXICO GERMANY JAPAN

5,0% 5,0% 5,0% 6,0%

41,0%

*Source: Descartes Datamyne and ITC, with official information

7,0%

31,0%

TOP 100 INTEGRADORES TOP 100 INTEGRATORS • INFORME • REPORT 2021 - 2022

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TOP ELECTRONIC SECURITY BRANDS MOST USED IN LATIN AMERICA IN 2021 CAMERAS AXIS HIKVISION OTHERS* DAHUA HANWHA BOSCH

*IDIS, TYCO,VIVOTEK, AVIGILON, FLIR

8,0% 24,0%

12,0%

16,0% 20,0% 20,0%

VMS 4,0% MILESTONE GENETEC DIGIFORT HONEYWELL EXACQVISION ONSSI ISS

6,0% 8,0% 9,0%

40,0%

9,0%

FIRE DETECTION

BOSCH EDWARDS HONEYWELL TYCO MIRCOM

4,4% 13,0% 30,4% Source: Survey carried out on an online platform among the integrators of the TOP 100 Latin Americans between September and October 30, 2021.

26,1%

26,1%

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TOP ELECTRONIC SECURITY BRANDS MOST USED IN LATIN AMERICA IN 2021

ALARMS 4.0% 13.0% DSC BOSCH TYCO HONEYWELL SECO-LARM

42.0%

13.0%

29.0%

ACCESS CONTROL

ZKTECO TYCO HID GLOBAL LENEL ROSSLARE SUPREMA BOON EDAM CDVI

5.0% 5.0% 5.0% 5.0%

32.0%

9.0%

14.0% 27.0%

Source: Survey carried out on an online platform among the integrators of the TOP 100 Latin Americans between September and October 30, 2021.

TOP 100 INTEGRATORS • REPORT 2022

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ELECTRONIC SECURITY IMPORTS 2020-2021 - CENTRAL AMERICA COUNTRY

DATES

Costa Rica

Ene-Dic 2020

Panamá

COMPANY

MAIN ORIGINS

VALUE IN USD

TAS SEGURIDAD

USA - Bulgaria

59.209

CIF

GLOBALTEC TECHNOLOGIES

USA- Mexico- China

26.222

CIF

SERVICIOS TÁCTICOS DE SEGURIDAD

USA

11.836

FOB

ELECTRONIC SECURITY IMPORTS 2020- 2021 - ANDEAN REGION COUNTRY DATES Colombia

Ecuador

Perú

Jan-Aug 2020 - 2021

COMPANY

MAIN ORIGINS

VALUE IN USD

G4S COLOMBIA TECHNOLOGY

Taiwan - USA - China - Mexico

33.902

FOB

FIRE PROTECTION DE COL

Malaysia - Mexico

22.044

FOB

BT SECURITY TECHNOLOGY

USA - Sweden - Colombia - Spain, Porcelain - Germany Mexico

250.470

FOB

LAARCOM

USA-Taiwan-Province of China

58.315

FOB

EXEC SISTEMAS

USA

589.147

CIF

TELVICOM

China- USA-Germany- Japan

306.086.682

FOB

TECSEL

USA-China- Vietnam-Mexico

249.479

FOB

Jan-Dec 2020

Jan-Dec 2020

ELECTRONIC SECURITY IMPORTS 2020-2021 - SOUTHERN CONE COUNTRY Chile

DATES Jan-Aug 2021

COMPANY

MAIN ORIGINS

AUTOMA ELECTRÓNICA

China - Mexico - USA - Taiwan - Israel - Peru United Kingdom

VALUE IN USD 3.399.522

CIF

VIDEOCORP

USA - Canada - Japan - China - Hong Kong

1.176.804

FOB

FOB (Free on Board) CIF (Cost, Insurance and Freight) Source: Descartes Datamyne with official information

In this regard, it is important to highlight that, although some of these companies import equipment as distributors, many others choose to only import certain equipment and components for their projects, and the rest of the elements are acquired through local distributors.

terms of imports and exports, which is proportionally related to the fall of imports in VDS. As a result, supply and demand have been on a downward trend. However, with the reactivation, capital flows may increase, which would allow an increase in imports for integrators.

It should also be noted that since 2020 to date Latin American countries have been impacted by COVID-19, which may significantly affect project production, thus affecting equipment procurement, while market uncertainties continue. At the same time, foreign trade has presented strong shocks in

Note: Only import data for electronic security equipment, such as video surveillance cameras, recorders, access control cards, and alarm and fire detection equipment were considered for these tables. The complete list of tariff codes analyzed for this chapter can be consulted in the Index of References on page 136.

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TOP 100 INTEGRATORS • REPORT 2022

21

CHAPTER 2

PERSPECTIVES OF LATIN AMERICAN INTEGRATOR COMPANIES The different representatives of the companies in the Top 100 Latin American integrators of the Electronic Security industry shared with us their perceptions about the projects and market trends they developed in the region, as well as their forecasts for the future, mainly considering the repercussions of the COVID-19 pandemic. In addition, they shared the results obtained (such as the value of sales per project completed) in 2020 and their growth and sales expectations for 2021-2022.

Also, industry integrators and academics were consulted about the perception of this business in recent years and the aspects that all stakeholders should strengthen to drive growth and economic recovery after the arrival of the pandemic. In addition, they focused not only on the technological issue but also on the growth of the industry in three scenarios: international trade, reduction of rents due to the pandemic, and in a third scenario: capital flows in relation to the risk that financial markets have within the industry.

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Mexico

MAK Extinguisher

Pearl Liliana Ortega Porcayo General Manager • Have you opened or closed offices in other ci-

ties or countries during the last year?

Yes, we opened offices in reform.

• How many projects did you carry out in 2020?

110 projects.

• Share with us an approximate dollar sales figu-

re for the projects completed last year: USD 3,411,824.

• In which cities do you have the largest partici-

pation?

Mexico City, Monterrey and Merida.

• What associations do you belong to and what

certifications do you have?

ALAS ASIS CHAPTER 217 AMEXSI CONMUJER SECURITY FOR MEXICO CERTIFICATION- E-COMMERCE MILESTONE X PROTECT PROFESSIONAL XLS IOM AND ZEUS COMBO MP11 FIREFINDER XLS SIEMENS DESS DIPLOMA IN SUSTAINABLE AND SUSTAINABLE SECURITY COMPANIES

• Tell us about your growth and sales prospects

for 2021-2022.

The integration of projects at the national level with the implementation of new technologies makes us think of a 40% growth in sales from the logistics organization and the strengthening of new lines of business and market penetration in areas of critical infrastructure security.

• Who are your trusted distributors and in which

countries/regions are they located?

Not applicable, our business partners are in the United States and Canada.

TOP 100 INTEGRATORS • REPORT 2022

23

THE PERSPECTIVES OF THE INTEGRATORS

Fouet

Seccomm SA de CV

• How many projects did you carry out in 2020?

• Have you opened or closed offices in other ci-

Ricardo Carrasco Director More than 50 projects.

Francisco Javier Fernández Soto Legal Representative ties or countries during the last year?

Guadalajara, in Jalisco, Mexico, was opened.

• Share with us an approximate figure of sales in

dollars for the projects carried out last year: USD 3,000,000.

• How many projects did you carry out in 2020?

• In which cities do you have the greatest partici-

• Share with us an approximate figure of sales in

pation?

Mexico City and Guadalajara.

• Tell us about your growth and sales prospects

for 2021-2022.

30% growth.

• Who are your trusted distributors and in which

countries/regions are they located?

TVC online, Syscom, Adises.

Approximately 20.

dollars for the projects carried out last year: USD 500,000.

• In which cities do you have the greatest partici-

pation?

CDMX, Querétaro and Guadalajara.

• our growth and sales prospects for 2021-2022.

Tell us about y we are waiting to see how the market behaves with the pandemic. It has been complicated; we have to look for new markets.

• What associations do you belong to and what

certifications do you have?

NFPA, ASIS.

• Who are your trusted distributors and in which

countries/regions are they located?

All of them are in Mexico and they are ADISES, Tecnosinergia, Syscom, TVC, Inalarm, etc.

• What associations do you belong to and what

certifications do you have?

ALAS, AMEXSI, ASIS, COLADCA, Seguridad por México, NFPA.

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Prodar, SA de CV Carlos Aguilar Manager

• How many projects did you carry out in 2020?

4 projects.

• Please share with us an approximate sales fi-

gure in dollars for the projects carried out last year: USD 500,000.

• In which cities do you have the greatest partici-

pation?

Throughout Mexico.

• Tell us about your growth and sales prospects

for 2021-2022.

USD 3,000,000.

• Who are your trusted distributors and in which

countries/regions are they located?

Syscom, Ingram, ISTC, and direct with the manufacturers.

They are mainly located in Mexico, Norway, UK, and the USA. • What associations do you belong to and what

certifications do you have?

Associations: COPARMEX Certifications: ISO 9001: 2015

TOP 100 INTEGRATORS • REPORT 2022

25

THE PERSPECTIVES OF THE INTEGRATORS

Central America

Asis Corp

Eduardo Lopez CEO Guatemala • How many projects did you carry out in 2020?

7 projects.

• Share with us an approximate figure of sales in

dollars for the projects carried out last year: USD 1,450,000.

• In which cities do you have the largest partici-

pation?

Guatemala, El Salvador and Tegucigalpa.

• Tell us about your growth and sales prospects

for 2021-2022.

20% growth.

• What associations do you belong to and what

certifications do you have?

ALAS, ASIS.

Servicios Tácticos de Seguridad Nino A. Vaprio CEO Panama

• How many projects did you carry out in 2020?

In total, more than 73 projects.

• Share with us an approximate dollar sales figu-

re for the projects completed last year: USD 9,000,000.

• In which cities do you have the greatest partici-

pation?

Panama, Costa Rica, Guatemala, Puerto Rico and El Salvador, in that order.

• Tell us about your growth and sales prospects

for 2021-2022.

A 20% increase.

• What associations do you belong to and what

certifications do you have?

We belong to several worldwide associations and have the largest number of certifications that a technology company and electronic security integrators can have.

26

Seguridad Electrónica y Tecnología Avanzada, SA Allan Bollat Herrera CEO Guatemala

• How many projects did you carry out in 2020?

Approximately 40 projects.

• Please share with us an approximate figure of

sales in dollars for the projects carried out last year.

Total sales, approximately USD 350,000.

• Who are your trusted distributors and in which

countries/regions are they located?

We have international distributors such as CAME Americas, Anixter and Full Protection in Miami, and NOFF and TVC in Mexico. In the local market with suppliers such as FSC and In alarm.

• What associations do you belong to and what

• In which cities do you have the greatest partici-

pation?

Guatemala City, Escuintla, Chimaltenango.

• Tell us about your growth and sales prospects

for 2021-2022.

In 2021 we expect to have sustained growth of 10% compared to 2020. The outlook for market recovery is positive, MYPIMES are gaining strength and are responding to the economic slump, and this financial injection allows the country’s economy to begin to recover and consumer confidence to return.

certifications do you have?

Associations ALAS - President of the National Committee Guatemala Tec Consortium • Certifications

NOFF - Fire Suppression Systems Bosch - Fire Detection Systems CAME - Parking Management Systems Dahua - Technical Certified Partner.

TOP 100 INTEGRATORS • REPORT 2022

27

THE PERSPECTIVES OF THE INTEGRATORS

TAS (Tecnología, Acceso y Seguridad, S.A.) Jorge Bardales President

• How many projects did you carry out in 2020?

92 projects.

• Share with us an approximate figure of sales in

dollars for the projects carried out last year USD 12,000,000.

• In which cities do you have the greatest partici-

pation?

Guatemala and El Salvador.

• Tell us about your growth and sales perspecti-

ves for 2021-2022 2% for 2021 compared to 2020.

• What associations do you belong to and what

certifications do you have?

ALAS, ASIS, we have certifications from each manufacturer we represent.

28

Techno Sys Soluciones S.A Josue Rodriguez Project Manager Costa Rica

• How many projects did you carry out in 2020?

22 projects.

• Share with us an approximate figure of sales in

dollars for the projects carried out last year USD 150,000.

• In which cities do you have the largest partici-

pation?

San José, San Isidro De El General.

• Tell us about your growth and sales perspecti-

ves for 2021-2022 To double our sales by 2021, with a change of strategy, and to make ourselves better known through marketing efforts.

• Who are your trusted distributors and in which

countries/regions are they located?

ANIXTER, INTCOMEX, are all in Costa Rica.

Andean Region

Cibersoftware Automatización Ltda Adolfo Wilches CEO Colombia

Compucima

Luis Atiencia Project Manager Ecuador • How many projects did you carry out in 2020?

7 projects.

• How many projects did you carry out in 2020?

In 2020, due to pandemic issues, projects were reduced by more than 90% compared to previous years. For 2021 we have been reactivating gradually.

• Share with us an approximate figure of sales in

dollars for the projects carried out last year USD 1.8 million.

• In which cities do you have greater participa-

• Tell us about your growth and sales prospects

for 2021-2022.

We expect to generate 75% more than in 2020.

tion?

Guayaquil.

• Tell us about your growth and sales prospects

• Who are your trusted distributors and in which

countries/regions are they located?

ANIXTER, SAC, LINCE, INGRAM, TECH DATA, MEM. All of them in Latin America.

• What associations do you belong to and what

for 2021-2022.

10% growth.

• What associations do you belong to and what

certifications do you have?

ALAS.

certifications do you have?

Aciem, ALAS, ASIS, BICSI.

TOP 100 INTEGRATORS • REPORT 2022

29

THE PERSPECTIVES OF THE INTEGRATORS

Control Room Monitoreo

Dointech Automatización SAS

• How many projects did you carry out in 2020?

• Have you opened or closed offices in other ci-

Esteban Acosta General Manager Ecuador 20 projects.

Nicolás Umbarila García General Manager Colombia

ties or countries during the last year?

Open: Cali, Medellín, Bucaramanga, Cartagena.

• Share with us an approximate figure of sales in

dollars for the projects carried out last year USD 160,000.

• How many projects did you carry out in 2020?

• In which cities do you have the largest partici-

• Share with us an approximate figure of sales in

pation?

Quito.

• What associations do you belong to and what

certifications do you have?

ALAS.

28 projects.

dollars for the projects carried out last year USD 1,350,000.

• In which cities do you have the largest partici-

pation?

Bogota.

• Tell us about your growth and sales prospects

for 2021-2022.

35% growth.

• Who are your trusted distributors and in which

countries/regions are they located?

SAC Seguridad, GVS Colombia, Syscom, Garajes Prefabricados.

• What associations do you belong to and what

certifications do you have?

Association of Engineers. Certifications in all the brands we belong to Resolution by the Superintendence of Surveillance

30

HTS Ingeniería SAS

Favinca

• How many projects did you carry out in 2020?

• How many projects did you carry out in 2020?

Carlos Fabara General Manager Ecuador 10 projects.

• Share with us an approximate figure of sales in

dollars for the projects carried out last year USD 250,000.

Luis Portillo Project Manager Colombia and Venezuela 15 projects.

• Please share with us an approximate figure of

sales in dollars for the projects carried out last year USD 170,000.

• In which cities do you have greater participa-

tion?

Quito, Guayaquil.

• In which cities do you have the largest partici-

pation?

Maracaibo, Caracas and Valencia.

• Which are your trusted distributors and in which

countries/regions are they located?

Hikvision, Dahua, Bosch, Zkt, HDL. • What associations do you belong to and what

certifications do you have?

College of Electrical and Electronics Engineers, NFPA, KNX partner.

• Tell us about your growth and sales prospects

for 2021-2022.

We expect the effects of the pandemic to continue until 2022.

• What associations do you belong to and what

certifications do you have?

ASIS, ALAS, HONEYWELL, PROWATCH, MAXPRO, LENEL, ONGUARD, GENETEC SECURITY CENTER, PELCO, BOSH.

TOP 100 INTEGRATORS • REPORT 2022

31

THE PERSPECTIVES OF THE INTEGRATORS

Sacor security

Security LTDA

• How many projects did you carry out in 2020?

• How many projects did you carry out in 2020?

Wilfrido carrera medina Owner Ecuador One project.

• Share with us an approximate dollar sales figu-

re for projects completed last year.

USD 15,000.

• In which cities do you have greater participa-

tion?

Guayaquil.

• Tell us about your growth and sales perspecti-

ves for 2021-2022.

20%.

• What associations do you belong to and what

certifications do you have?

WINGS.

Jose Vicente Calderon C. General Manager Colombia 60 projects.

• Share with us an approximate figure of sales in

dollars for the projects carried out last year USD 1.5.

• In which cities do you have the largest partici-

pation?

Bogota.

• Tell us about your growth and sales prospects

for 2021-2022.

You plan to grow by 20%, taking into account the difficulties you are facing due to the presence of Covid-19 restrictions.

• What associations do you belong to and what

certifications do you have?

ALAS, ISO 9001:2015

32

Spectra Ingeniería SAS

Carlos Alberto Villa Castillo Commercial Director Colombia • Have you opened or closed offices in other ci-

ties or countries during the last year?

We have opened in other cities.

• How many projects did you carry out in 2020?

More than 200 projects between small, medium, and large.

• Share with us an approximate figure of sales in

dollars for the projects carried out last year USD 5,000,000.

• In which cities do you have the largest partici-

• Who are your trusted distributors and in which

countries/regions are they located?

Lince Comercial - Colombia Anixter - Colombia Melexa- Colombia Sac- Colombia Electricos del Valle - Colombia • What associations do you belong to and what

certifications do you have?

ISO 9001:2015 Certification RUP Certification.

Multiple manufacturer certifications.

pation?

Cali, Bogota, Barranquilla and Medellin.

• Tell us about your growth and sales prospects

for 2021-2022.

In 2020 we present a decrease in sales by 50% compared to 2019, our goal is to grow by 200% in 2021 compared to 2020.

TOP 100 INTEGRATORS • REPORT 2022

33

THE PERSPECTIVES OF THE INTEGRATORS

Southern Cone Tecsel S.R.L

Freddy Vidal Rivadeneira General Manager Peru • How many projects did you carry out in 2020?

18 projects.

• Share with us an approximate figure of sales in

dollars for the projects carried out last year.

USD 1.5 million.

• In which cities do you have the largest partici-

pation?

Lima, Peru.

• Tell us about your growth and sales prospects

for 2021-2022.

By 10%.

• Who are your trusted distributors and in which

countries/regions are they located?

Anixter, istc, silmar.

• What associations do you belong to and what

certifications do you have?

WINGS.

ASL Seguridad Integral Ltda.

Alejandro Silva Leiva Technical Manager Chile

• How many projects did you carry out in 2020?

10 projects.

• Please share with us an approximate sales fi-

gure in dollars for the projects carried out last year.

USD 500,000.

• In which cities do you have the largest partici-

pation?

Santiago, Viña del Mar, Valparaiso.

• Tell us about your growth and sales prospects

for 2021-2022.

Depending on the commercial progress.

• Who are your trusted distributors and in which

countries/regions are they located?

Importadora bash, Artilec, intcomex, tds chile, full alarm, Altasec, video vision, Autónoma, metropolitan region.

• What associations do you belong to and what

certifications do you have?

NFPA, Est, Notifier, Honeywell, Hikvision, Ademco.

34

Grupo Schutz S.A

Prosegur

• How many projects did you carry out in 2020?

• How many projects did you carry out in 2020?

Carlos Rogers Technical Manager Chile 80 projects.

Maximiliano D’Adario Commercial Manager Argentina More than 100 projects.

• Share with us an approximate figure of sales in

• Share with us an approximate figure of sales in

dollars for the projects carried out last year.

USD 4,000,000.

dollars for the projects carried out last year.

More than USD 1.5 million.

• In which cities do you have the largest partici-

• In which cities do you have the largest partici-

pation?

Santiago de Chile.

• Tell us about your growth and sales prospects

for 2021-2022.

Keep us.

• Which are your trusted distributors and in which

countries/regions are they located?

Dahua Chile, Fermax Spain, Hochiki USA, ZK Teco Chile, Optimus Spain.

pation?

Buenos Aires.

• Tell us about your growth and sales prospects

for 2021-2022.

10% growth.

• What associations do you belong to and what

certifications do you have?

CAESI, CAESBA.

• What associations do you belong to and what

certifications do you have?

NFPA, ANAPCI, and several certifications from telecommunications, security, and fire protection manufacturers.

TOP 100 INTEGRATORS • REPORT 2022

35

THE PERSPECTIVES OF THE INTEGRATORS

Webpcx

Cristian Laude General Manager Chile • How many projects did you carry out in 2020?

More than 10 projects.

• Share with us an approximate figure of sales in

dollars for the projects carried out last year.

UDS 1.6 million.

• What associations do you belong to and what

certifications do you have?

We have multiple certifications: labor, process, and equipment certifications, among others.

36

TOP 100 INTEGRATORS • REPORT 2022

37

OUTLOOK EXPERTS / CONSULTANTS 2021- 2022

38

“IT IS NECESSARY TO GENERATE STRATEGIC ALLIANCES BETWEEN THE COMPANIES IN THE SECTOR TO BE ABLE TO OFFER THE MARKET ALTERNATIVES THAT HELP MOVE INVENTORIES, IN ADDITION TO HELPING THE ECONOMIC RECOVERY”.

Claudio Cesar Patiño Fernández Specialist and property security and safety human

• LET’S START FROM THE MOST GENERAL: WHAT IS YOUR PERCEPTION OF THE ELECTRONIC SECURITY INDUSTRY AT THE PRESENT TIME? Very complicated, most of the companies in Latin America stopped investing in security systems, which causes an economic and technological recession.

• HOW DO YOU ANALYZE THE SECTOR OF THE INTEGRATING COMPANIES? Full of challenges to recover the market, and must be much more competitive in quality, price, and customer service.

• HOW WOULD YOU DESCRIBE THE EVOLUTION OF THE INDUSTRY, LOOKING BACK OVER THE LAST 3 YEARS? The first year, very strong, very outstanding, but in the last few years, they had to turn around in a dizzying way both in their products and in the way they approached customers, the pandemic transformed the industry.

• DO YOU CONSIDER THAT CUSTOMERS AND USERS OF ELECTRONIC SECURITY ARE BECOMING BETTER INFORMED AND MORE AWARE OF NEW TECHNOLOGIES IN THE MARKET? HOW CAN THIS AFFECT INTEGRATORS? I believe that they are better informed, and this means that contractors and installers should be aware of the technical aspects of the products they handle.

TOP 100 INTEGRATORS • REPORT 2022

39

EXPERTS / CONSULTANTS • IN YOUR OPINION, IN WHICH LATIN AMERICAN COUNTRIES IS THE ELECTRONIC SECURITY INDUSTRY HAVING A GOOD MOMENT? IN WHICH ONES IS IT STAGNATING? I think that all of Latin America is investing in new technologies, although certain market sectors are lagging behind. The countries that are obviously lagging behind are Cuba, Venezuela, and Argentina due to their current economic crises.

• WHAT DO YOU THINK BUSINESSMEN NEED TO CONTINUE PROMOTING THIS INDUSTRY? Greater local diffusion of the technologies they handle, to bring down the topics not only to specialists but to the community in general so that the population knows more and more about the existing security technologies.

• WHAT RECOMMENDATIONS WOULD YOU GIVE TO BUSINESSMEN WHO ARE GOING THROUGH DIFFICULT TIMES, AS IN ARGENTINA OR VENEZUELA? They should look for ways to bring more economical and accessible technologies to the market, as well as seek alliances in the region.

• AS A PROGNOSIS, WHAT IS THE PERCENTAGE OF GROWTH OF THE INDUSTRY IN RELATION TO INTERNATIONAL TRADE, THE REDUCTION OF INCOME DUE TO THE PANDEMIC? I would say that the growth will be between 5 or 6%.

• HOW IS THE LEVEL OF INVESTMENT IMPACTING THE LEVEL OF CAPITAL FLOWS IN RELATION TO THE RISK THAT FINANCIAL MARKETS HAVE WITHIN THE INDUSTRY? Less product supply and less technological development.

40

• WHAT WOULD BE A BETTER SCENARIO: A SCENARIO THAT REMOVES FEARS OF RECESSION AND FOCUSES ATTENTION ON PRODUCTIVITY ISSUES FOR THE SECTOR? It is complicated because most of these issues do not depend on the business sector, it depends on the internal policy of each country, if we think in socialist countries this is detrimental and gives a lot of uncertainty in investment we need to be more capitalist to generate wealth.

• IN THE COMMERCIAL SEGMENT, HOW HAS THE ANNUAL ECONOMIC DECLINE DURING THE PANDEMIC AFFECTED THE SECTOR? WHAT HAS BEEN THE IMPACT ON THE ACQUISITION OF MONITORING AND SECURITY SYSTEMS? It has been impacted with less investment in the acquisition of new technologies, it has caused many companies to look for less efficient alternatives.

• WHAT GLOBAL TRENDS ARE BEING KEY IN THE INDUSTRY IN RELATION TO CONNECTIVITY? The foray into 5G without a doubt.

• AND IN GENERAL, WHAT MESSAGE OR ADVICE WOULD YOU LIKE TO GIVE TO ELECTRONIC SECURITY INTEGRATORS FOR 20212022?

Generate strategic alliances between companies in the sector to be able to offer the market alternatives that help move inventories, in addition to helping the economic recovery of each of the companies.

“THE IMBALANCE BETWEEN THE TIME TO COMMERCIALIZATION AND THE “SAFETY TIME” IS STILL A PREDOMINANT ISSUE”.

Nayia Barmpaliou

Head of Public Policy and Initiatives Center for Cybersecurity World Economic Forum

• WHAT ARE THE MARKET FAILURES AND OPPORTUNITIES FOR CYBERSECURITY IN THE DIGITAL ECONOMY? Faced with this question the head of Policy of the Economic Forum responded in the Report “CYBERSECURITY RISKS, ADVANCES AND THE WAY FORWARD IN LATIN AMERICA AND THE CARIBBEAN” of the Inter-American Development Bank that the advancement of digital technologies highlights major innovations, which in turn generates vulnerabilities in a way that

spreads easier than they can be addressed. “To date, the imbalance between time-to-market and “time-to-security” remains a predominant issue, due to the pressure of market forces in favor of new technology products, without incentives to prioritize security features from the beginning of the product life cycle” he assured in the Report.

On the other hand, he said, “For now, we see that the usual lack of a ‘security by design approach to technological innovations has led to a trend towards voluntary cybersecurity certification schemes for ICT products, for example in the European Union and Singapore, with more countries focusing specifically on the IoT. At the other end of the spectrum, this market failure has resulted in cybersecurity as one of the most diverse and rapidly expanding sectors worldwide”.

For LAC opportunities, he said that “as the region moves towards greater maturity in its cybersecurity, it is important that national cybersecurity implementation strategies consider measures aimed at limiting the risk of a larger TOP 100 INTEGRATORS • REPORT 2022

41

EXPERTS / CONSULTANTS attack surface, and draw on existing standards or voluntary schemes”.

• HOW HAS THE CYBERSECURITY STRATEGY THAT IS AN INTEGRAL PART OF THE BUSINESS STRATEGY GAINED MORE TRACTION AND ACTUAL IMPLEMENTATION BY COMPANIES? He also emphasized that this is because of publicity alluding to certain major security breaches, as well as greater legal and regulatory considerations, including the entry into force in May 2018 of the European Union’s General Data Protection Regulation (GDPR). “In terms of execution, this has been critical for business leaders and the corporate sector to understand the cyber risks to their business operating model and strike the right balance between protecting the security of their assets, mitigating losses and maintaining profitability in a competitive environment. Greater awareness at the corporate leadership level is important to empower decision making and planning for cyber security, response mechanisms, and investments”.

42

• HOW ARE “OLD” AND “NEW” TECHNOLOGIES RESHAPING THE CYBERSECURITY INDUSTRY AND LANDSCAPE? The articulation of IT with operational technology and legacy systems creates challenges across the digital ecosystem. Barmpaliou argues that “the emergence of new technologies and their applications, such as artificial intelligence, big data, fifth-generation networks, cloud computing, IoT and quantum computing, drastically challenge our conventional thinking about the future of the digital economy. On the one hand, they offer immense opportunities for efficiency and innovation, but they also amplify the attack surface and may create as yet unknown security and data privacy risks”.

Finally, it states that addressing the challenge lies in increasing the level of trust between the different stakeholders in the ecosystem and this may reduce friction in the current regulatory and assurance models.

Source: “Cybersecurity Report 2020”, Inter-American Development Bank (IDB) Organization of American States (OAS).

TOP 100 INTEGRATORS • REPORT 2022

43

QUESTIONNAIRE ACADEMICS REGIONAL TRENDS IN CYBERSECURITY PREPAREDNESS

44

“THE DEVELOPMENT OF CYBER SECURITY CAPABILITIES IT REMAINS AN ONGOING AND NATIONWIDE EFFORT THAT CAN ONLY SUCCEED IF IT IS BASED ON AN INCLUSIVE APPROACH THAT INCORPORATES VULNERABLE GROUPS THROUGHOUT SOCIETY”.

Furthermore, this data will provide additional information to stakeholders delivering capacitybuilding resources on the impact their investment has had to date and will enable them, as well as practitioners, researchers, international organizations, and governments to identify successes and best practices in capacity building. Not least, this longitudinal data also facilitates a better understanding of the value of capacity assessments in guiding policy and investment priorities.

Sadie Creese

Director, Global Cyber Security Capability Center, University of Oxford

•

WHAT IS THE LONGITUDINAL PERSPECTIVE ON CYBERSECURITY CAPABILITY DEVELOPMENT ACROSS THE REGION? “This perspective over time provides an opportunity for governments in the region to systematically assess their progress in light of developments in neighboring nations. This knowledge can also help governments streamline their efforts aligned with milestones they have identified at the strategic level in national cybersecurity related to action plans, or other cyber capacities”.

•

WHAT SIGNIFICANT IMPROVEMENTS HAVE BEEN IMPLEMENTED IN FOSTERING A CYBERSECURITY MINDSET WITHIN GOVERNMENTS AND AMONG INTERNET USERS? Multi-stakeholder consultations conducted for the implementation of national cybersecurity strategies broaden awareness among participating organizations of their respective activities, responsibilities, and capabilities. “These awareness gains can trickle down to others and help extend and sustain capability in this space. Advances in the organization and content of strategies are TOP 100 INTEGRATORS • REPORT 2022

45

QUESTIONNAIRE ACADEMICS reflected in greater consideration of ICT security issues among government representatives”.

However, the data suggests that both groups, both government officials and Internet users in general, still lag behind the private sector; and Internet users’ awareness of security, in general, remains relatively low. “In this regard, it is worth remembering that building cybersecurity capabilities remains an ongoing, nationwide effort that can only succeed if it is based on an inclusive approach that incorporates vulnerable groups across society”.

• WHAT IS THE BIGGEST CHALLENGE IN CYBERSECURITY? All aspects of cybersecurity education and training, for example, rank in the bottom half, in terms

46

of progress. The workforce shortage of qualified cybersecurity professionals is an almost universal challenge. However, without adequate funding for professional training and education, the mismatch between supply and demand carries the risk of delaying maturity gains down the road; also the lack of a supportive cybersecurity skills base could have cascading negative effects on capacity-building efforts in other areas. These considerations highlight the need to balance investments in nearterm maturity gains to address immediate security threats with long-term plans to foster skills and education that contribute substantially and selfsustainably to national cybersecurity postures.

Source: “Cybersecurity Report 2020”, Inter-American Development Bank (IDB) Organization of American States (OAS).

TOP 100 INTEGRATORS • REPORT 2022

47

48

CHAPTER 3

RANKING BY REGION

TOP 100 INTEGRATORS • REPORT 2022

49

Mexico CONTACT

INCOME (ANNUAL IN USD)

YEAR (INCOME)

RECOGNITION (%)

CCTV, Access Control, RFID

Ricardo Carrasco +52 55 5207 0507 rcarrasco@fmexico.mx www.fouet.com.mx

$3.000.000 (**E)

2020

10,71%

JOMTEL TELECOMUNICACIONES

Access control

Jorge Luis Morera Angulo +52 55 5822 0222 +55 8925 1112 ventas@jomtel.com www.jomtel.com

$7.234.034 (Q*)

2021

8,57%

3

TENCO

CCTV, Fire, Access Control

Alejandrina Brito-Figueroa +52 61 4410 5017 abrito@tenco.com.mx www.tenco.mx

$11.660.000 (**E)

2020

7,23%

4

JOHNSON CONTROLS MÉXICO

CCTV, Access Control, Fire

Daniel Sandoval +52 55 5140 1248 daniel.sandoval.gonzalez@jci.com www.johnsoncontrols.com/es_mx

$23.66 B (Figure corresponding to the international level) *Investing

2019

5,75%

5

WILLIAMS TANCREDI COMUNICACIONES

CCTV, Access Control, Fire

Nancy Cortéz +52 81 8155 1111 nancy.cortez@williamstancredi.com www.williamstancredi.com

$3.700.000 (*D)

2017

4,79%

IKUSI

CCTV, Fire, Access Control

David Urzúa +52 55 5663 8600 david.urzua@ikusi.com www.ikusilatam.com

$170.024.992 (E*)

2020

4,15%

SEGURITECH

CCTV, Access Control, Software

Omar Zárate +52 55 5083 0000 ozarate@seguritech.com www.seguritech.com

$173.630.000 (*D)

2016

4,06%

8

EAS SYSTEMS

CCTV, Fire, Access Control, Alarms

Anabel Martiñon +52 55 5338-9016 anabel@easmexico.com www.eassystemslatam.com

ND

ND

3,17%

9

COMPAÑÍA INTEGRA SOLUCIONES

CCTV, Fire, Access Control

David Inguanzo +52 55 8582 6375 ventas@cintegra.com.mx www.cintegra.com.mx

$83.400.000 (*D)

2020

3,12%

SISSA MONITORING INTEGRAL

CCTV, Access Control, Software

Elias Valencia +52 5525603425 +55 1954 2832 elias.gomez@sissamx.com.mx www.sissamx.com.mx

$20.000.000 (Modeling) (*D)

2021

3,12%

GRUPO COVIX

CCTV, Fire, Access Control, Alarms

Esneidy Arellanes +52 55 5568 6364 ventas@grupocovix.com www.grupocovix.com

$100.000.000 (**E)

2020

3,01%

COMPANY

1

2

6

7

10

11

50

FOUET

SEGMENTS

Mexico COMPANY

SEGMENTS

CONTACT

INCOME (ANNUAL IN USD)

YEAR (INCOME)

RECOGNITION (%)

Armando Menéndez +52 55 5515 0865 amenendez@besco.com.mx www.besco.com.mx

$2.337.230 (***Q)

2020

2,95%

12

BESCO MÉXICO

CCTV, Fire, Access Control, Alarms

13

PROSEGUR TECNOLOGÍA S.A. DE C.V.

CCTV, Fire, Access Control, Alarms

Marcos Castillo Améndola +52 55 8628 3020 marcos.castillo@prosegur.com www.grupoprosegur.com.mx

$7.360.000 (***Q)

2020

2,69%

ND

ND

2,65%

14

3NETWORKS

CCTV, Access Control, Alarms

Octavio López Mejía +52 55 65 86 43 72 +52 55 65 86 43 73 octaviolopezmejia@gmail.com www.3networks.com.mx

15

G4S MÉXICO

CCTV, Fire, Access Control, Alarms

Natalia Mahecha + 52-5553370400 informacion@mx.g4s.com www.g4s.com

$623.420 (modeling) (*D)

ND

2,60%

FALCÓN SECURITY

Access control

Enrique Maldonado +52 65 6625 4040 enrique@falconsecurity.mx www.falconsecurity.mx

ND

ND

2,51%

LOGEN

CCTV, Access Control, Fire

Eduardo Espinosa +52 55 3098 9300 eespinosa@logen.com.mx www.logen.com.mx

$196.663.890 (***Q)

2019

2,47%

4EVERSECURE

CCTV, Access Control, Alarms

Julio Zacarías +52 55 7155 2145 jfzacarias@4eversecure.com www.4eversecure.com

ND

ND

2,32%

PRODAR

CCTV, Access Control

Carlos Aguilar +52 44 2193 5490 caguilar@prodar.com www.prodar.com

$500.000 (**E)

2020

2,27%

20

SAFECITY

CCTV, Fire, Access Control, Alarms

Rafael de la Mora Gómez +52 33 3642 0436 rdelamora@safecity.com.mx www.safecity.com.mx

ND

ND

2,25%

21

SEAL TELECOM MÉXICO

CCTV, Access Control, Alarms

Orlando Meza +52 55 51078541 orlando@sealtelecom.com.mx www.sealtelecom.com.mx

$100.000.000 (**E) (Amount corresponding to All Latin America)

2020

2,25%

CCTV

Andrés Arzani +52 55 5338 1700 a.arzani@vipsystem.com.mx www.vipsystem.com.mx

$206.666.718 (***Q)

2021

2,21%

16

17

18

19

22

VIP SYSTEM

TOP 100 INTEGRATORS • REPORT 2022

51

Mexico COMPANY

SEGMENTS

CONTACT

INCOME (ANNUAL IN USD)

YEAR (INCOME)

RECOGNITION (%)

$2.080.000 (*D)

2019

2,18%

$4.410.000 (modeling) (*D)

ND

2,10%

PROCESOS AUTOMATIZADOS (PROSA)

CCTV, Access Control, Fire

Alberto Friedmann +52 55 5543 0400 afriedmann@procesos.com.mx www.procesos.com.mx

ASINTELIX

CCTV, Fire, Access Control, Alarms

Noé García +52 55 5335 0041 ngarcia@asintelix.com www.asintelix.com

BLUE GUARD

CCTV, Alarms, Fire

Oscar Garza +52 81 1352 8361 oscar.garza@blueguard.com.mx www.blueguard.mx

$25.021 (***Q)

2021

2,05%

SECCOMM

CCTV, Access Control, Software

Javier Fernández +52 55 5271 5373 j.fernandez@seccomm.com.mx www.seccomm.com.mx

$500.000 (**E)

2020

1,90%

27

ECOSAT

CCTV, Fire, Access Control, Alarms

Daniel Rueda Osuna +52 614 432 2500 druedad@gmail.com www.ecosat.com.mx

$2.760.000 (*D)

2020

1,88%

28

AMCORP SECURITY GROUP MÉXICO

CCTV, Fire, Access Control, Alarms

Luis César Becerra +52 33 3120 6060 lbecerra@amcorpsecurity.com www.amcorpsecurity.com

$74.331 (modeling) (*D)

ND

1,84%

SYS INTEGRATIONS

CCTV

Gerardo Zavala Elías +52 55 1360-0657 gerardo@sysintegrations.mx www.sysintegrations.mx

ND

ND

1,68%

CTSL SRL DE CV

CCTV, Access Control

Omar Larrondo Mancilla +52 55 1666 0500 olarrondo@ctsl.com.mx www.ctsl.com.mx

ND

ND

1,53%

23

24

25

26

29

30

100,00% Source: (*D) Dun & Bradstreet Data Cloud, official figures based on financial reports originated by some operating companies. (** E) Interviews carried out through SurveyData. (***Q) Platform Who’s Who. * Note: the modeled figures correspond to estimates and projections made for the last year in which data were available. The year (income) shown in the table is based on the latest information available. ND: Data not available.

52

Central America COMPANY

SEGMENTS

CONTACT

COUNTRY

INCOME (ANNUAL IN USD)

YEAR (INCOME)

RECOGNITION (%)

$12.000.000 (**E)

2020

16,71%

1

TECNOLOGÍA, ACCESO & SEGURIDAD, TAS

CCTV, Fire, Access Control, Alarms

Jorge Bardales +502 2427 5959 jbardales@tas-seguridad.com www.tas-seguridad.com

Guatemala, El Salvador, Honduras, Costa Rica, Panama and the Dominican Republic

2

JOHNSON CONTROLS

CCTV, Access Control

Adalberto Williams Velásquez +507 225 0220 adalberto.velasquez@jci.com www.johnsoncontrols.com

Central America and the Caribbean

$23.66 B (Figure corresponding to the international level) *Investing

2019

12,30%

3

TECHNOSYS SOLUCIONES S.A.

CCTV

Josué Rodríguez +501 4001 3266 +4000 1860 jrodriguez@tecnocomprascr.com www.tecnocomprascr.com

Costa Rica

$150.000 (**E)

2020

8,61%

4

ASIS CORP

CCTV, Fire, Access Control, Alarms

Eduardo López +50 2234-7790 e.lopez@asiscorp.net www.asiscorp.net

Guatemala

$1.450.000 (**E)

2020

8,46%

CCTV, Fire, Access Control, Alarms

Luis Pedro Argeñal +502 2384 4000 largenal@revtecsa.com www.revtecsa.com

Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica

$5.690.000 (modeling)(*D)

ND

8,46%

G4S

CCTV, Fire, Access Control, Alarms

Roberto Gamero +503 2500-6285 roberto.gamero@sv.g4s.com www.g4s.com

El Salvador - Costa Rica - Guatemala - Nicaragua Trinidad and Tobago

$10.32 B (Overall figure *D)

2019

8,22%

7

DISEP

CCTV, Access Control, Alarms

Allan Bollat +502 2293 -6914 abollat@seguridad.gt www.seguridad.gt

Guatemala

$1.410.000 (*D)

ND

7,51%

8

SERVICIOS TÁCTICOS DE SEGURIDAD S.A.

CCTV, Fire, Access Control, Alarms

Nino Vaprio +507 390 4675 nvaprio@sertacse.com www.sts.lat

Panama

$9.000.000 (**E)

2020

5,71%

9

SEAL TELECOM

CCTV, Access Control, Alarms

Lorena Meza +56 9 8724-2594 lorena@sealtelecom.cl www.sealtelecom.com

Central America

$100.000.000 (**E) ((Figure corresponding to Latin America)

2020

5,62%

10

GLOBALTEC TECHNOLOGIES

Fires

Gerad Zúñiga +506 2209 2400 gzuniga@globalteccr.com www.globalteccr.com

Costa Rica El Salvador - Honduras Panama

$5.780.000 (modeling)(*D)

ND

5,21%

5

6

REVTEC

TOP 100 INTEGRATORS • REPORT 2022

53

Central America COMPANY

SEGMENTS SERVED

CONTACT

COUNTRY

INCOME (ANNUAL IN USD)

YEAR (INCOME)

RECOGNITION (%)

11

GRUPO FÉNIX

CCTV

Bessy Luna +50 377436876 www.grupofenix.com.sv

El Salvador

ND

ND

4,55%

12

ACT SECURITY SYSTEMS

CCTV, Fire, Access Control, Alarms

Alexander Calixto +787 500-7055 alex@actsecuritypr.com www.actsecuritypr.com

Puerto Rico

$4.000.000 (modeling)(*D)

ND

4,32%

13

CENTURY SECURITY

CCTV, Fire, Access Control, Alarms

Andrés Vergara +507 261 0957 gerencia@centurysecurity.com.pa www.centurysecurity.com.pa

Panama

ND

ND

3,79%

14

ADVANCE SYSTEMS SYPPLY

CCTV, Access Control, Alarms

Ana Cristina Romero Millano +507 209 5151 info@advsysa.com www.advsysa.com

Panama

$5.010.000 (modeling) (*D)

ND

0,27%

IDCORP SRL

CCTV, Fire, Access Control, Alarms

Giancarlo Flamini 8093810660 gflamini@idcorpsa.com www.idcorpsa.com

Dominican Republic

$2.790.000 (modeling) (*D)

ND

0,27%

15

100,00%

Source: (*D) Dun & Bradstreet Data Cloud, official figures based on financial reports originated by some operating companies. (** E) Interviews carried out through SurveyData. (***Q) Platform Who’s Who. * Note: the modeled figures correspond to estimates and projections made for the last year in which data were available. The year (income) shown in the table is based on the latest information available. ND: Data not available.

54

Andean Region COMPANY

SEGMENTS SERVED

CONTACT

INCOME (ANNUAL IN USD)

YEAR (INCOME)

RECOGNITION (%)

Colombia

$5.000.000 (**E)

2020

7,49%

1

SPECTRA

CCTV, Fire, Access Control, Alarms

2

JOHNSON CONTROLS REGIÓN ANDINA

CCTV, Fire, Access Control, Alarms

Mateo Herrera +57 1 655 3600 mateo.herrera@jci.com www.johnsoncontrols.com/es_ latinamerica

Andean region

$23.66 B (Figure corresponding to international level) *Investing

2019

6,35%

3

G4S COLOMBIA TECHNOLOGY

CCTV, Fire, Access Control

Alexander Salazar +57 4 444-9474 alexander.salazar@co.g4s.com www.g4s.com

Colombia

$14.930.000 (*D)

2020

5,30%

4

PROSEGUR

CCTV, Access Control, Alarms

Henry A Saether +57 1 4378000 henry.saether@prosegur.com www.prosegur.com.co

Colombia Peru

$5.420.000 (*D)

2018

3,91%

5

VIGITEK

CCTV, Fire, Access Control, Alarms

Franz Flores +591 339 2300 gerenciaoperaciones@vigitek.com.bo www.vigitek.com.bo

Bolivia

ND

ND

3,75%

6

TECSEL S.R.L.

CCTV

Freddy Rivadeneira Vidal 975159164 fvidal@tecselperu.com www.tecselperu.com

Peru

$1.500.000 (**E)

2020

3,75%

TOTEM

CCTV, Fire, Access Control, Alarms

Luis Fernando Uribe +593 6020060 lfuribe@totem.com.ec www.totem.com.ec

Ecuador

ND

ND

3,64%

8

AP INGENIERÍA

CCTV, Fire, Access Control, Alarms

Naisir Abdala +57 5 379 5524 nabdala@apingenieria.com www.apingenieria.com

Colombia

ND

ND

3,56%

9

SWISS PERÚ

CCTV, Fire

Majulia Visalot Castrillón + 51-16557777 ventas@swissperu.com swissperu.com

Peru

$1.970.000 (*D)

2018

3,48%

FIRE PROTECTION DE COLOMBIA S.A.

Fires

Natalia Padilla +57 4 288 8811 naty@fpc.com.co www.fpc.com.co

Colombia

$2.990.000 (*D)

2020

3,48%

7

10

Carlos Alberto Villa +57 2 488 2279 carlosvilla@spectra.com.co www.spectra.com.co

COUNTRY

TOP 100 INTEGRATORS • REPORT 2022

55

Andean Region COMPANY

SEGMENTS

CONTACT

COUNTRY

INCOME (ANNUAL IN USD)

YEAR (INCOME)

RECOGNITION (%)

GLOBAL NETWORK SYSTEMS

CCTV, Fire, Access Control, Alarms

Diana Paola Pardo +57 1 896 4039 comercial@globalnetworksystems.co www.globalnetworksystems.co

Colombia

ND

ND

3,31%

DOINTECH

CCTV, Access Control

Nicolás Umbarila +57 1-3738975 n.umbarila@dointech.com.co www.dointech.com.co

Colombia

$1.350.000 (**E)

2020

3,19%

13

UBATEC

CCTV, Fire, Access Control, Alarms

Angela Romero +51 (1) 980584843 +51 (1) 996544455 ventas@ubatec.net www.ubatec.net

Peru

ND

ND

3,02%

14

ELECTRONIC INTERNATIONAL SECURITY S.A. ELINSE

CCTV, Fire, Access Control

Oscar Lara Elinse +51 1 422 4947 olara@elinse.com.pe www.elinse.com.pe

Peru

$1.250.000 (*D)

2015 last available

2,98%

15

COLVISEG, COLOMBIANA DE VIGILANCIA Y SEGURIDAD LTDA

CCTV, Fire, Access Control, Alarms

Jairo Vallejo Garcia +5760 1 3459100 jvallejogar@hotmail.com www.colviseg.com

Colombia

$39.070.000 (*D)

2020

2,94%

16

BT SECURITY TECHNOLOGY

CCTV, Fire, Access Control, Alarms

Andrés Dueñas +593 2 451 1408 aduenas@btsa.ec www.btsa.ec

Ecuador

ND

ND

2,86%

TELVICOM

CCTV, Fire, Access Control, Alarms

Carlos Anciburo +51 962 382 437 canciburo@telvicom.com www.telvicom.com

Peru

$10.330.000 (*D)

2015

2,81%

FAVINCA

CCTV, Fire, Access Control, Alarms

Luis Portillo +57 1 691 3022 luis.portillo@favinca.com www.favincacolombia.com

Colombia venezuela

$170.000 (**E)

2020

2,71%

19

SECURITY SYSTEMS

CCTV, Access Control, IT

Santiago Castañeda (+57) (5) 3786520 santiago.rubiano95@gmail.com www.securitysystems.co

Colombia

ND

ND

2,57%

20

SEAT SEGURIDAD Y EQUIPOS DE ALTA TECNOLOGÍA

CCTV, Fire, Access Control, Alarms

Mónica Lerma +57 2 880 0444 gerenciacomercial@seguridadseat. com www.seguridadseat.com

Colombia

ND

ND

2,55%

11

12

17

18

56

Andean Region CONTACT

COUNTRY

INCOME (ANNUAL IN USD)

YEAR (INCOME)

RECOGNITION (%)

SIAPROCI

CCTV, Fire, Access Control

Patricio Fustillos +57 (02) 246-3019 pfustillos@siaproci.com www.siaproci.com

Ecuador / Peru

$589.576 (modeling)(*D)

ND

2,34%

TANGO

CCTV, Fire, Access Control, Alarms

David Restrepo +57 4009357 david.restrepo@tangocolombia. com.co www.tangocolombia.com.co

Colombia

ND

ND

2,34%

SEAL TELECOM

CCTV, Access Control, Alarms

Manuel Salas Naranjo +57 320 238 3677 manuel@sealtelecom.com.co www.sealtelecom.com.co

Colombia Peru

$100.000.000 (**E) (Figure corresponding to Latin America)

2020

2,32%

Fires

Alberto Garcia +58 212 242 55 22 ventasvencontrols@gmail.com mercadeovencontrols@gmail.com www.vencontrols.com

Venezuela

$3.290.000 (modeling)

ND

2,24%

Colombia

$1.190.000 (*D)

2020

2,24%

COMPANY

21

22

23

SEGMENTS

24

VENCONTROL’S SISTEMAS C.A.

25

GENERAL FIRE CONTROL LTDA

Fires

Marcela García +57 1 4203100 mgarcia@generalfirecontrol.com www.generalfirecontrol.com

26

COMPUCIMA S.A.

CCTV, Fire, Access Control

Luis Atiencia +593 4 5035991 proyectos@compucima.com.ec www.compucima.com.ec

Ecuador

$1.800.000 (**E)

2020

2,13%

27

HELIOS TECHNOLOGY & INNOVACIÓN

CCTV, Fire, Access Control, Alarms

Hernando Bojacá Palacios +57 1 742-9758 hbojaca@heliosti.com www.heliosti.com

Colombia

$1.470.000 (*D)

2020

1,82%

28

CIBERSOFTWARE AUTOMATIZACIÓN LTDA

CCTV, Fire, Access Control, Alarms

Adolfo Wilches +57 1 286 6232 adolfo@cibersoftware.net www.ciber.co

Colombia

$98.828 (*D)

2020

1,78%

29

SEGURYSISTEM – GRUPO DOSSIER

CCTV, Fire, Access Control, Alarms

Raúl Campos Salazar +51 13 311 162 rcampos@segurysistem.com www.segurysistem.com

Peru

$1.290.000 (modeling) (*D)

ND

1,74%

30

FRACTALSEG

CCTV, Fire, Access Control, Alarms

Esteban Acosta +59 9 901 6119 esteban.acosta@fractalseg.com www.fractalseg.com

Ecuador

$678.374 (*D)

2018

1,74%

TOP 100 INTEGRATORS • REPORT 2022

57

Andean Region COMPANY

SEGMENTS

CONTACT

COUNTRY

INCOME (ANNUAL IN USD)

YEAR (INCOME)

RECOGNITION (%)

Ecuador

$250.000 (**E)

2020

1,28%

31

HTS INGENIERÍA

CCTV, Fire, Access Control, Alarms

Cristian Vallejo +593 2 280 0685 cvallejo@htech-solutions.com.ec www.htsingenieria.com

32

EXEC SISTEMAS CIA, LTDA

Fires

Mauricio Egas +593 2 241 5568 megas@execsistemas.com www.execsistemas.com

Venezuela

ND

ND

1,20%

33

SEGURTRONIC LTDA

CCTV, Fire, Access Control

Nerso Arlevis Benitez +57 4 444 1926 direcciontecnicaydeproyectos@ segurtronic.com www.segurtronic.com

Colombia

$2.010.000 (*D)

2020

1,18%

GO SECURITY

CCTV, Access Control, Fire

Elkin Fernando Quimbay 3134412582 contactenos@gosecurity.com.co www.gosecurity.com.co

Colombia

ND

ND

1,08%

GENERAL SECURITY LTDA

CCTV, Fire, Access Control, Alarms

José Vicente Calderón +57 1 657 1559 gerencia@generalsecurityltda.com www.generalsecurityltda.wixsite. com

Colombia

$1.500.000 (**E)

2020

0,95%

34

35

100,00%

Source: (*D) Dun & Bradstreet Data Cloud, official figures based on financial reports originated by some operating companies. (** E) Interviews carried out through SurveyData. (***Q) Platform Who’s Who. * Note: the modeled figures correspond to estimates and projections made for the last year in which data were available. The year (income) shown in the table is based on the latest information available. ND: Data not available.

58

Southern Cone COMPANY

SEGMENTS

CONTACT

COUNTRY

INCOME (ANNUAL IN USD)

YEAR (INCOME)

RECOGNITION (%)

Southern cone

$23.66 B (Figure corresponding to Latin America) *Investing

2019

8,84%

CCTV, Fire, Access Control, Alarms

Cristóbal E, Barriga +56 9 71410553 cbarrib@tycoint.com www.johnsoncontrols.com

VIDEOCORP LTDA,

CCTV

Alfonso Vergara Rivera +56 2 4316100 avergara@videocorp.cl www.videocorp.com

Chile

$24.090.000 (modeling) (*D)

ND

7,72%

3

WEBPCX

CCTV, Access Control, Alarms

Cristian Laude +56 3 5244 2827 cristian@webpcx.cl www.webpcx.cl

Chile

$1.600.000 (**E)

2020

7,72%

4

SECON SECURITY CONCEPT

CCTV, Fire, Access Control, Alarms

Carolina Avellaneda +54 11 4331 4770 carolina.avellaneda@seconsis.com.ar www.seconsis.com.ar

Argentina

ND

ND

6,90%

5

SISTEMAS DE PROTECCIÓN Y SEGURIDAD S.R.L.

CCTV, Fire, Access Control, Alarms

Gonzalo Ruanoba +54 11 4639-2409 gonzaloruanoba@sps.com.ar www.sps.com.ar

Argentina

ND

ND

6,28%

SOLEM

CCTV, Access Control, Alarms

Patricio Leixelard +56 3 2265 6000 patricio.leixelard@solem.cl www.solem.cl

Chile

ND

ND

5,98%

G4S

CCTV, Fire, Access Control, Alarms

Fernando Pesce +54 11 4630 6600 fernando.pesce@ar.g4s.com www.g4s.com.ar

Argentina - Chile Uruguay

$58.830.000 (*D)

2019

5,95%

PROSEGUR

CCTV, Access Control, Alarms

Maximiliano D’ario +54 11 4838 2350 Maximiliano.dadario@prosegur.com www.prosegur.com.ar

Argentina - Chile Paraguay - Uruguay

$1.500.000 (**E)

2020

5,50%

VICNET

CCTV, Access Control

Rodolfo Alonso +54 11 4328 8999 ralonso@vicnet.com.ar www.vicnet.com.ar

Argentina

ND

ND

5,35%

10

EXANET

Video surveillance

Hugo Menegozzi +54 11 4794 1078 hugom@exanetonline.com www.exanetonline.com

Argentina, Uruguay, Chile

ND

ND

4,91%

11

SEAL TELECOM

CCTV, Access Control, Alarms

Ignacio Lucero +56 9 8724-2594 ignacio@sealtelecom.cl www.sealtelecom.com

Argentina - Chile Paraguay

$100.000.000 (**E) (Figure corresponding to Latin America)

2020

4,18%

1

2

6

7

8

9

JOHNSON CONTROLS CONO SUR

TOP 100 INTEGRATORS • REPORT 2022

59

Southern Cone COMPANY

SEGMENTS

CONTACT

COUNTRY

INCOME (ANNUAL IN USD)

YEAR (INCOME)

RECOGNITION (%)

12

AUTOMA ELECTRÓNICA LTDA

CCTV, Fire, Alarms

Juan Pedro Reyes +56 2 2947 0500 jreyes@automa.cl www.automa.cl

Chile

$13.390.000 (*D)

2019

4,13%

13

SIT SEGURIDAD

CCTV, Fire, Access Control, Alarms

Sebastian Emilio Pavez Espinoza +569 813 810 97 contacto@sit-seguridad.cl www.sit-seguridad.cl

Chile

$5.950.000 (modeling) (*D)

ND

3,89%

14

SIALAR

CCTV, Fire, Access Control, Alarms

Ricardo Mentasti +54 11 46379393 rmentasti@sialarseguridad.com.ar www.sialarseguridad.com.ar

Argentina

ND

ND

3,54%

15

ELCA SEGURIDAD ELECTRÓNICA SRL

CCTV, Fire, Access Control, Alarms

Sergio Pattacini +54 11 49254102 sergiopattacini@elcasrl.com.ar www.elcasrl.com.ar

Argentina

$5.240.000 (*D)

2014 (last available)

3,51%

16

ALUTEL S.R.L.

CCTV, Fire, Access Control, Alarms

Michel Grudzien +598 2929 1289 mgrudzien@alutel.com.uy www.alutel.com.uy

Uruguay

$2.750.000 (modeling)(*D)

ND

3,49%

17

ATIS GROUP

CCTV, Fire, Alarms

Patricio Arriagada +56 9 5189 7895 parriagada@atisgrouplatam.com www.atisgroupla.com

Chile

$880.040 (modeling) (*D)

ND

3,09%

18

ASL SEGURIDAD INTEGRAL

CCTV, Fire, Access Control, Alarms

Alejandro Silva +569 82800269 asilva@aslintegral.cl www.aslintegral.cl

Chile

$500.000 (**E)

2020

3,04%

SINCRO

CCTV, Fire, Access Control, Alarms

Norberto Kurchan +54 11 4771-7207 comercial@sincro.com.ar www.sincro.com.ar

Argentina

ND

ND

3,01%

INTELEKTRON

CCTV, Access Control, Alarms

Marcelo Colanero +54 11 2205 9000 mcolanero@intelektron.com www.intelektron.com

Argentina

$2.660.000 (*D)

2018

2,96%

19

20

100,00% Source: (*D) Dun & Bradstreet Data Cloud, official figures based on financial reports originated by some operating companies. (** E) Interviews carried out through SurveyData. (***Q) Platform Who’s Who. * Note: the modeled figures correspond to estimates and projections made for the last year in which data were available. The year (income) shown in the table is based on the latest information available. ND: Data not available.

60

TOP 100 INTEGRATORS • REPORT 2022

61

CHAPTER 4 62

RISING FREIGHT AND CARGO PRICES - WHAT’S THE REASON?

FREIGHT AND CARGO MOVED ON DIFFERENT ROUTES FROM LATIN AMERICA (PERCENTAGE)

10.0% 5.0%

8.0% 2.3% -0.2%

0.0% -5.0%

-20.0%

2.2%

1.5%

-2.5% -2.3% -6.0%

-11.8%

-6.0%

-9.9%

-9.80% -16.2%

Europe

Variation in exports

1.5% 1.0%

0.2%

-3.5%

-10.0% -15.0%

7.0%

Asia

North America

Variation in exported freight

Variation in imports

-18.9% Middle East - India

Intra Latin America

Variation imported freight

Comex

Source: Economic Commission for Latin America and the Caribbean (ECLAC) based on information from Drewry.

The increase in product prices, the scarcity of raw materials, and the high costs of container shipments are other concerns for industry integrators in terms of distribution and logistics. In addition, it is possible that the supply of some integrated systems, equipment, among others, may decrease. In relation to this, if there is an increase in demand in this scenario, the price increase would be much higher.

Alessandro Nicita, economist at the UN trade agency (UNCTAD), explains that it is the strong recovery of exports in the world that is generating a real shock: “If trade were depressed, there would be no crisis”.

According to Javier Diaz, president of Analdex, “this situation has generated a shortage of containers, defaults in itineraries and an accelerated increase in transportation costs. Thus, the average freight rates of 20-foot units from China to Latin America, for example, are now almost five times higher than the average of the last 12 years”.

Before the pandemic, shipping a container from

Asia to Latin America and vice versa cost an average of $2,000 USD and sometimes as much as $1,500 USD, and today it is hardly possible to get sea freight on that route for less than $8,000 USD. The Asia-Europe corridor, on the other hand, reaches rates in excess of $10,000 USD and up to $14,000 USD for a single voyage.

This is in addition to the increase in freight rates from Asia to the Americas. According to data available from the Freight Baltic Index (FBX), freight rates have been increasing over the last year. Such is the case from the East Coast of North America to China/East Asia (10% increase) while from the East Coast of North America to Northern Europe there is a decrease of 18%. Thus, the price volatility for freight rates is 2.3%. The prices for these zones remain at $10,519 USD, which is equivalent to an increase of 2 %.

From another point, it is shown that from Europe to the East Coast of South America the increase in freight rates is 4 % with a price of 3,688 USD.

TOP 100 INTEGRATORS • REPORT 2022

63

Increase (annual) in prices relative to the Global Index container loading

From To

03-Sep-2020

a

03-Sep-2021

$10.000 $7.500 $5.000 $2.500

01-Nov-20

01-Jan-21

01-Mar-21

01-May-21

01-Jul-21

01-Sep-21

Source: Freight Baltic Index (FBX).

Note: The price increases (annual: September 2020 to September 2021) shown in the graph are related to the Global Container Freight Index (USD values).

From another point, as shown by the SFCI index, which is the most used indicator to measure ocean freight rates and analyzes the costs of routes with China for 20-foot containers, this has gone from just over 700 points at this time in 2019, to over 4,500 points at the close of August, i.e., a growth of almost 530 %. This figure is higher on some routes.

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CHAPTER 5 66

SECTORS AND COMPANIES FACING COVID-19: IMPACT ON THE ELECTRONIC SECURITY INDUSTRY

After the COVID-19 pandemic caused severe health and economic shocks and originated a much deeper social crisis, some countries are beginning to reduce confinement measures after having lived through months of lockdown, social distancing, among other measures taken to mitigate the spread of the virus.

This situation is therefore strongly impacting the regional residential alarm monitoring markets. In Europe, the Middle East, and Africa (EMEA), account growth totaled 2.5 percent by 2020, which affects Latin American trade.

However, while the pandemic affected account growth, the level of household connectivity was at its highest. This presented an opportunity for residential monitored security providers to interact with customers, leading to increased sales of connected devices such as outdoor cameras. These sales allowed for a balance between slowing growth due to low demand in some segments and increased supply due to teleworking, which led to new contracts.

Marketsandmarkets’ most recent information on the commercial security systems market, with impact analysis by Covid-19 through 2026, predicts that the sector will grow from $223.9 billion in 2021 to $342.6 billion by 2026, representing annual growth of 8.9%.

ON THE OTHER HAND, THE GLOBAL MARKET SIZE FOR VSAAS IN 2019 WAS ESTIMATED TO BE APPROXIMATELY $1.2 BILLION. MOST FORECASTS NOW PREDICT IT WILL GROW AT A COMPOUND ANNUAL GROWTH RATE OF 20 % OVER

One of the estimates made for the electronic security industry in 2020 showed a decrease of 5%, caused by lower demand in Asia, and specifically in China, which is the largest single market for video surveillance in the world.

THE NEXT 5 YEARS, WHICH

In the face of this, specific vertical markets such as retail, hotels, and leisure were strongly affected by the recession. However, the downturn created opportunities for those security companies that were prepared with equipment such as access control readers that can eliminate physical contact, whereby through cell phones, they could see a rapid increase in demand.

BY 2024, BUT GROWTH

IS BELIEVED TO BE OVERLY OPTIMISTIC; MORE LIKE 15 % REACHING $2.4 BILLION ACCELERATES AS IT REACHES 2024.

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Productive structure: the region’s external and internal gap and its effects after the pandemic The economic crisis generated by COVID-19 has had a major impact on the countries of Latin America and the Caribbean and has hit the productive and business structure, further highlighting the region’s weaknesses.

The region’s productive structure is highly heterogeneous among sectors and companies. According to the Economic Commission for Latin America and the Caribbean (ECLAC), “few natural resource production and processing activities, some capital-intensive services (electricity, telecommunications and banking) and a few large companies have high levels of value added per worker, while the others have very low levels of productivity.

It is important to note that the production structure is the basis for the region’s external and internal productivity gaps. The first measures the difference between labor productivity in Latin America and that of the United States, which is adopted as a reference for the international technological frontier. The second registers the difference that exists within each country between the labor productivity of micro, small and medium-sized enterprises (MSMEs) and that of large companies.

In 1980, the external labor productivity gap in Latin America was 36.6% of that of the United States. After a sharp fall in that decade and, to a lesser extent, in the 1990s, relative productivity in the region reached barely one-fifth that of the United States between 1999 and 2018. In absolute terms, the region’s labor productivity grew by 0.6% per year between 2008 and 2018.

As for the internal gap, heterogeneity among firms is very high in Latin America. In 2016, the labor productivity of a medium-sized firm was, on average, less than half of that corresponding to a large company. In small enterprises, labor productivity reached

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only 23% of the productivity of large businesses, and micro firms had labor productivity equivalent to only 6% of that of large companies.

Moreover, before COVID-19 arrived in Latin America, performance differences between the different segments of MSMEs were already more marked and productive structures were less heterogeneous, as in the European Union. For example, in the European Union, the productivity of medium-sized enterprises was less than double that of microenterprises (as a proportion of the productivity of large enterprises, 76% and 42%, respectively), while in Latin America it was more than seven times higher (46% compared to 6%).

Comparison between Latin America and the European Union: domesticLATIN relative productivity COMPARISON BETWEEN AMERICA AND THE2016 EUROPEAN UNION: RELATIVE DOMESTIC PRODUCTIVITY 2016

80 70 60 Latin America

50

European Union

40 30 20 10 0

Microcompanies

Small companies

Medium-size companies

Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on official information. (Latest available productivity data through 2016).

Note: Relative domestic productivity is measured by the quotient between the value of labor productivity of each AMERICA (5 COUNTRIES): SHARE OF OUTPUT OF THEcountry DIFFERENT GROUPS segment of MSMEs andBETWEEN the value of labor productivity of large companies a givenEUROPEAN or region. UNION: COMPARISON LATIN AMERICA ANDinTHE

LATIN OF INDUSTRIAL SECTORS ACCORDING TO THE INTENSITY OF THE EXPECTED IMPACT OF RELATIVE DOMESTIC PRODUCTIVITY 2016 The interruption of many productiveTHE acti- CRISIS According to ECLAC, “this has occurred in

80 60 70 60 50 50 40 40 30 30 20 20 10 10 0 0

vities has also generated problems(PERCENTAGES) in the segments of durable consumer goods (ausupply of domestic and imported inputs tomobiles, furniture, household applianfor those 53,5% companies that52,6% have continued ces, housing, clothing and footwear, for Latin America to operate. On the demand side, reduced example), while the impact has been minor 43,2% 42,0% European Union 39,4% Technology-intensive consumer incomes and uncertainty have or even positive for 37,3% sales of other types of resulted in a drop in consumption and a goods and services (cleaning products and Natural resource intensive change in consumption patterns. The pan- disinfectants, durable food, Internet televiLabor-intensive demic will have caused the closure of 2.7 sion and telecommunications)”.

14,9% million Latin American companies, or 19% 9,3% 8,0% Microcompanies Small companies Medium-size companies of the total number of companies.

Strong impact Significant impact Moderate impact

Latin America (5 countries): share of output of the different

LATIN AMERICA SHARE according OF OUTPUTto OFthe THE DIFFERENT GROUPS OF groups (5 ofCOUNTRIES): industrial sectors intensity of the INDUSTRIAL SECTORS ACCORDING TO THE INTENSITY OF THE EXPECTED IMPACT OF expected impact of the crisis THE CRISIS

(Percentages) (PERCENTAGES)

60 53,5%

50 40

52,6% 43,2%

39,4%

42,0%

37,3%

30

Natural resource intensive Labor-intensive

20 10 0

Technology-intensive

14,9% Strong impact

9,3% Significant impact

8,0% Moderate impact

Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on official information.

Note: The 5 countries analyzed correspond to Mexico, Brazil, Argentina, Colombia, Peru.

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IMPACT OF COVID-19 ON THE DIFFERENT SEGMENTS OF AV PROJECTS IN LATIN AMERICA Tourism, culture, commerce, transportation and construction have been the most affected sectors.

These account for 24.6% of GDP and 34.2% of employment. In contrast, the activities that have been least affected have been agriculture, livestock and fishing, food production, medical products and telecommunications. These activities account for 14.1% of GDP and 18.2% of employment.

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Commercial The COVID-19 pandemic has intensified several trends that were already emerging in world trade, including trade and technological tensions between the United States and China; growing economic nationalism and conflict in trade relations; the weakening of multilateral cooperation; the digitalization of production and trade; and the trend toward regionalization of production through nearshoring (location of suppliers in countries closer to the target market) and reshoring (relocation of strategic productive and technological processes to the country of origin).

The value of Latin America’s exports grew 8.9 percent in the first quarter of 2021 compared to the same period last year, consolidating a change in trend after the contraction caused by the COVID-19 pandemic, according to a report by the Inter-American Development Bank (IDB). The drop in the value of external sales in 2020 was 9.0 percent.

For Paolo Giordano, Chief Economist of the Integration and Trade Sector of the IDB and coordinator of

the study “Estimates of Trade Trends: Latin America and the Caribbean - 2021 Q1 Edition”, the pandemic will continue to impact domestic markets in the coming months. He added: “Importing will be fundamental to overcome the worst economic crisis of the last century”.

The recovery responded to the improvement in export prices, while real flows continued to decline. The volume of Latin America’s external shipments recorded an estimated 2.2 percent year-on-year drop in the first quarter of 2021, after declining 7.8 percent in the previous year. However, some rebound has been observed in several countries in the region since March.

Exports from Latin America to China increased by 34.7 percent year-on-year in the first quarter. Exports to the United States and the European Union also increased, although at a slower pace, by 3.9% and 4.0%, respectively. Intra-regional purchases from Latin America rebounded by 11.6 percent.

IMPACT OF THE PANDEMIC ON FOREIGN TRADE Change in the total value of exports in Latin America and the Caribbean in 2020* -17.6%

South America -13.9%

Latin America and the Caribbean -14.8%

Caribbean -10.3%

-15.1% -11.6% Source: ECLAC Note: 2020 forecasts* for selected countries and regions.

Central America

Brazil Mexico

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Education The disruption to education has had considerable effects in areas other than education. Closures of educational institutions hinder the delivery of essential services to children and communities, such as access to nutritious food, affect the ability of many parents to work, and increase the risks of violence against women and girls. As fiscal pressure grows and development assistance comes under strain, education financing could also face significant challenges, adding to the massive education financing gaps that existed prior to COVID-19.

For low- and lower-middle-income countries, for example, that shortfall has reached a staggering US$148 billion per year, a sum that could now increase by as much as one-third.

As argued by the United Nations on the current economic turmoil, “the situation is likely to contribute to widening income gaps, which will increase gender inequality. In addition, several studies estimate that the loss of working hours will account for up to 400 million full-time jobs”.

FUNDING GAP BEFORE COVID-19 TO ACHIEVE THE SUSTAINABLE DEVELOPMENT GOAL (IN MILLIONS OF DOLLARS) 6000

+18% 5,039

5000

Progress is slower than expected

3,559

More students than expected Higher unit cost of education

4000 3,400

Increased availability of data

3,010

Less time to achieve goals

3000

29%

2000

1,480

11%

1000

390 0 Total funding required

Education budget

Funding shortfall

Determination of education spending in 2015

Total funding required

Education budget

Funding shortfall

Determination of education spending in 2020, before the pandemic.

Source: UNESCO, Global Education Monitoring Report (2020). New realities for education affected by COVID Cost predictions.

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Government In some countries, governments provided more resources, in which transfers were a crucial factor.

The situation, then, has shown in the government sector, the social tensions that drag the region, having consequences such as: greater ungovernability and economic paralysis.

On the other hand, the sector must face one of the main challenges for the mobilization of domestic resources to finance the implementation of the SDGs in Latin Ameri-

ca and the Caribbean, tax evasion. Also, estimates of tax evasion, aggressive tax planning by multinational companies and high net worth individuals, and illicit financial flows indicate that the resources lost are high.

In the economic sphere, the challenge is to recover robust growth by promoting structural reforms capable of adapting the regional productive matrix to the demands of the fourth industrial-digital revolution. The goal is to make Latin American nations more productive and competitive.

LATIN AMERICA (16 COUNTRIES): TOTAL CENTRAL GOVERNMENT REVENUES,

BY COMPONENT, 2010-2019 (AS PERCENTAGES OF GDP)

18.2

18.4

18.4

18.3

18.1

18.1

18.0

18.1

18.1

3.6

3.4

3.2

3.1

2.9

2.6

2.6

2.6

2.6

2.8

14.5

14.9

15.2

15.3

15.4

15.5

15.5

15.4

15.5

15.3

18.0

Other income 2019

2018

2017

2016

2015

2014

2013

2012

2011

Tax revenues 2010

20 18 16 14 12 10 8 6 4 2 0

Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on official figures.

Note: Simple averages. In the cases of Argentina, Mexico and Peru, the figures correspond to the national public administration, the federal public sector and the general government, respectively. Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru and Uruguay.

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Hospital and Pharmaceutical Although stock market theory suggests that the large pharmaceutical industries and the health sector cannot be affected by an eventual crisis, given that demand always exists, especially in a pandemic such as COVID-19, where millions in losses are evident, the harmful effect of the coronavirus on the world economy has also permeated the price of laboratories worldwide, and has slowed down mergers with other pharmaceutical companies.

As a result, more than 600 (of the largest) laboratories lost 452,000 million dollars in stock market volume in the first quarter of the year, according to data extracted from the consulting firm Evaluate Pharma.

The combined capitalization of these companies is USD $3,5 billions.

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Part of the problem is that although there are many health systems in Latin America that have universal coverage as a declared objective, in practice numerous barriers persist, such as the very high proportion of out-of-pocket expenses as a percentage of total health spending that is observed in most Latin American countries.

On the other hand, there are the out-of-pocket payments made to access services not included in the coverage plans of the different types of insurance, or to compensate for the lack of quality, comprehensiveness or timeliness of those offered by public health care, impeding or delaying care, as well as making it more costly for individuals and the system.

Industrial In terms of the impact on industry, it can be said that the crisis has hit the potentially more technologically dynamic industrial sectors the hardest and, therefore, will deepen the structural problems of the region’s economies. This means that, if adequate policies are not implemented to strengthen these productive branches, there is a high probability of generating a regressive structural change that would lead to the reprimarization of the region’s economies.

The impact on the industrial structure can be observed in some countries, when analyzing the performance of the first four months of 2020 compared to

the same period of 2019.

Technology-intensive sectors included the production of automobiles and auto parts, other transportation equipment, electronics (final products and components), industrial machinery, medical and scientific instruments, and pharmaceuticals. Natural resource-intensive sectors include metal smelting, wood, pulp and paper, chemicals, construction materials, food, beverages and tobacco. Finally, laborintensive sectors include the production of textiles, clothing, leather, footwear, plastic products and cleaning products.

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Logistics and distribution Global value chains were the main channel for transmitting the effects of COVID-19 to world trade. In Latin America, the disruption of supply chains, starting with Chinese suppliers and then with European and U.S. production, mainly affected the manufacturing sectors of Mexico, Argentina and Brazil.

On the other hand, in the transportation sector, with the pandemic, the global shipping industry restructured to cope with a decrease in global freight traffic.

Now, with the reestablishment of markets and the rapid increase in demand for ships and containers to transport goods, shipping companies are unable to increase their fleets at this new speed and, again, there is greater demand than supply.

The adoption of the essential crisis response measures has also had a major impact on aggregate demand in the region, resulting in a sharp reduction in activity in several economic sectors.

In maritime transport, projections of variations in the main items of international trade, for 2020, vary among products. Iron ore traffic would end 2020 with a growth of 1%, coal -8%, and dry bulk +5%. The variation in containers would be -7%.

The drops in container traffic were marked in the months of April and May, after it was observed that in January and February the activity was still on the rise. In the accumulated period from January to June 2020, the drop in containerized ma-

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ritime trade worldwide was 7%, and in Latin America almost 8%.

According to ECLAC, “in the case of aviation, the drop in activity puts the industry and its workers at risk and may reduce the region’s air connectivity. The severe travel restrictions adopted worldwide have made the aviation industry one of the economic sectors most affected by the pandemic”.

At the end of June 2020, air passenger traffic (RPK) and air cargo (FTK) indicators showed year-on-year1 declines of 94.2% and 40.2% respectively, while for the South American countries with updated data (Argentina, Brazil and Chile), the declines were 91.1% and 18.1%, respectively.

Likewise, the Economic Commission stated in the report “Post-Pandemic International Logistics” that the maritime industry reacted quickly to the circumstances created by the COVID-19 outbreak, protecting itself with tools it had already practiced in the previous major crisis of 2008-2009. “Even so, several of the world’s major shipping lines have received or are about to receive support from their governments. The possible evolution of the pandemic and the measures that will have to be implemented to resume full air services, coupled with the precarious financial conditions of many companies prior to the pandemic, have led the airline industry into the worst crisis in its history.”

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CHAPTER 6 78

OUTLOOK FOR LATIN AMERICAN ECONOMIES (PANDEMICPOST-PANDEMIC)

Volatility in financial markets

By 2020, the world’s GDP is expected to shrink the most in comparison to 1946, as a result of a generalized fall in economic activity in both developed and emerging economies. Similarly, the crisis has triggered a contraction in international trade, which in turn has led to sharp fluctuations in high prices as a result of volatility in the financial markets, resulting in lower profitability and greater risk aversion.

The economic instability generated by the pandemic in international financial markets and the uncertainty in commodity markets led to strong exchange rate corrections, which gave way to considerable fluctuations in the region’s currencies during the first three quarters of 2020. Most Latin American and Caribbean currencies depreciated against the dollar. Thus, in the first ten months of 2020, 17 of the region’s economies recorded currency depreciations, with an average depreciation of 16.3%.

In addition, pandemic containment measures adopted in the vast majority of the world’s countries have had a significant impact on tourism and commercial aviation, restaurant and hotel service activities.

However, the measures adopted by some of the governments of Latin American countries to deal with the effects of the pandemic have helped to mitigate the economic impact on the social and business fabric of the region. The case of the fiscal monetary packages, for amounts close to 12 trillion dollars in fiscal actions and 7.5 trillion dollars in monetary actions announcements have cushioned the fall in economic activity, but this has also caused high levels of liquidity, which has had repercussions in the increase of indebtedness at a global level.

In relation to the above, it should be noted that the variation in the nominal exchange rate against the U.S. dollar was divergent in the countries of the subregion. For example, the annual average for 2020, with respect to 2019, reports the largest depreciation in the Dominican Republic (10.2%), followed by Nicaragua (3.7%), while in Costa Rica, Guatemala and Honduras the average variation was close to zero (between 0.2% and 0.3%).

FINANCIAL MARKET VOLATILITY INDEX (JANUARY 2018 - OCTOBER 2020) 90 80 70 60 50 40 30 20

2019

Oct

Sep

Aug

Jul

Jun

May

Apr

Feb

Mar

Jan

Dic

Nov

Oct

Sep

Aug

Jul

Jun

Apr

May

Feb

Mar

Dic

Jan

Nov

Oct

Sep

Jul

2018

Aug

Jun

Apr

May

Mar

Jan

0

Feb

10

2020

Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on Bloomberg Note: The VIX index, prepared by the Chicago Board Options Exchange (CBOE), measures expected volatility for the next 30 days and is obtained from the prices of call and put options on the S&P 500 index.

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Thus, if risk perception were to change and risk aversion were to increase, this would have negative effects on emerging economies in general and on Latin America and the Caribbean in particular. Emerging economies would be more vulnerable to changes in financial market access conditions, given the sharp increase in debt ratios.

EMERGING MARKETS BOND INDEX 2020 Venezuela Argentina Ecuador

219,7%

Variation vs.

28/2/20 +79 -36

14,6%

-30

10,2%

Mexico Dominican Republic

4,7%

+26

4,5%

+12

Brazil

3,1%

+22

Colombia

2,4%

+14

Source: Central Bank of the Dominican Republic.

Note: “Spread” of the Emerging Markets Bond Index, known as “country risk”, in a selection of Latin American countries according to data from October 27, 2020.

According to the Institute of International Finance (IIF), the debt of governments and companies in developed countries reached 432% of GDP in the third quarter of this year, surpassing the record level of 380% of GDP recorded in 2019, while in emerging countries it reached 250%. The increase in debt was accompanied by a greater acceptance of risk by in-

7,7 % DROP IN LATIN AMERICAN GDP IN 2020, ACCORDING TO ECLAC.

80

vestors seeking higher yields. Much of the debt accumulation from the global financial crisis had been in the non-financial corporate sector, for which the disruption of supply chains and reduced global growth imply less optimal results and evidence of greater difficulty in repaying debt.

External shocks and new growth challenges for the region Thus, the magnitude of the effects of the crisis at the global and Latin American level has also been determined by structural factors such as their degree of integration in international trade and global value chains, their productive structure, demographic aspects and the level of formalization of labor markets.

The region’s historical structural weaknesses and gaps, limited fiscal space, low coverage and access to social protection, high labor informality, productive heterogeneity and low productivity are central to understanding the scope of the pandemic’s effects on the region’s economies, its difficulties in implementing policies to mitigate these effects and the challenges in undertaking a sustainable and inclusive economic recovery.

According to the Economic Commission for Latin America and the Caribbean (ECLAC): “ The health

A GROWTH RATE OF 5.2 % OF THE WORLD ECONOMY IS EXPECTED IN 2021, ACCORDING TO ECLAC.

emergency materialized in the worst economic, social and productive crisis that the region has experienced in the last 120 years, and in a 7.7% drop in regional GDP”.

Against this backdrop, ECLAC stated: “In the global arena, despite a slight upward revision of the projections made in mid-year, in 2020 the world economy was expected to suffer a 4.4% drop and a generalized recession in countries and regions. The growth dynamics reflect, in part, a better-than-expected second quarter for some of the major economies, thanks to the boost from fiscal packages and the rebound enabled by reopenings during the third quarter.”

In 2021, the said commission mentions that a rebound in the growth rate of the world economy of around 5.2% is expected.

In developed economies, a growth rate of 3.9% is projected for 2021, which implies that, on average, these economies will not reach pre-crisis GDP levels next year. Similarly, and with a similar forecast, the International Monetary Fund (IMF) projects world economic growth of 5.5% in 2021 and 4.2% in 2022.

Impact on trade and value chains On the other hand, with respect to world trade, according to the World Trade Organization (WTO), a

WORLD GDP WILL GROW BY

4,2 % IN 2022, ACCORDING TO THE IMF.

9.2% drop was forecast for 2020 and a 7.2% recovery in 2021. The 2020 drop would be the deepest since the 2009 global economic and financial crisis, when it was almost 13%. “Between January and September 2020, the volume of trade fell by 7.2% compared to the same period of the previous year, although since June there had been a recovery.”

It should be noted that Brazil and Uruguay recorded smaller declines in imports than the rest of the South American economies during the first half of 2020, while imports from Costa Rica, Guatemala and Nicaragua fell less than the Central American average.

It is also worth noting that in the first months of 2020 there was a sharp decline in commodity prices, from May onwards this was reversing and, with the exception of energy commodities, by October prices were already above pre-pandemic levels: 5% above the December 2019 level.

The IMF’s October projections point, on average, to a 9% increase in commodity prices: 4% in agri-food products, 3% in base metals and 16% in energy products.

In the context of Latin America and the Caribbean, the decline in commodity prices translated into lower export prices, especially in hydrocarbon exporting countries (-19%); agro-industrial and mining exporters faced a milder decline (-3%). Export volumes contracted in all subgroups, as the international crisis reduced external demand.

THE WORLD TRADE ORGANIZATION REPORTS THAT IMPORTS OF ALL LATIN AMERICAN COUNTRIES FELL

BY DOUBLE DIGITS (-26.6%) IN MOST OF THEM IN 2020.

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YEAR-ON-YEAR RATE OF CHANGE IN WORLD TRADE VOLUME (PERCENTAGES, BASED ON A SEASONALLY ADJUSTED INDEX) A.World 20 Projection WTO 2020: -9,2 2021: +7,2

13.9

15 8.9

10 7.1

6.0

4.7

5

4.9 1.4

0.8

2.3

2.8

1.9

3.5

1.0

0 -0.5 -5 -7.2

-10

Jan a sep 2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

-12,8 2005

-15

B. Selected regions and countries 15 10 5 0 -5 -10 -15 -20 -25 -30 -35

Ene

Feb

Mar

Abr

May

Jun

Jul

Ago

Eastern Europe and the Commonwealth of Independent States Africa and the Middle East Eurozone World United States Japan Latin America Emerging economies of Asia (excluding China) China

2020

Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of Netherlands Bureau of Economic Policy Analysis (CPB), World Trade Monitor [online database] https://www.cpb.nl/en/worldtrademonitor.

- World Trade Organization (WTO), https://www.wto.org/spanish/news_s/pres20_s/pr862_s.htm.

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As for the Central American and Caribbean countries, excluding Trinidad and Tobago, the terms of trade would improve (by 5% and 3.4%, respectively) as a result of the large weight of energy in their import basket.

Remittances, which are a key component of the balance of transfers, have had a heterogeneous behavior among the countries. In Mexico, the main remittancereceiving economy (accounting for more than a third of the total flows received), remittances grew by 9% up to August 2020 compared to the same period of the previous year. They have also increased in Jamaica (18%), the Dominican Republic (11%), Nicaragua (9%), Guatemala (4%) and El Salvador (1%). On the contrary, in other countries remittances have decreased so far this year: this is the case of Bolivia (-2 %), Peru (-22%), Paraguay (-16%), Costa Rica (-10%), Ecuador (-10%), Honduras (-2%) and Colombia (-1%).

In the meantime, according to Balance of the Economy of Latin America and the Caribbean developed by ECLAC in 2020 it is argued, “Despite the fall in exports, the region’s current account deficit will decrease significantly (to 0.4% of GDP from 1.8% of GDP in 2019) due to the strong contraction of imports. These present the worst performance since the global financial crisis: a 14% reduction in volume terms is expected. The value of the region’s exports would contract by 13%: export prices would fall by 7% and export volumes by 6%”.

sovereign risk has tended to decrease and stabilize thanks to the strong improvements registered in September in Argentina and Ecuador.

As measured by the Emerging Markets Bond Index Global (EMBIG), it reached 467 basis points at the end of October, well below the 702 basis points it closed at in April, but still above the 346 basis points it recorded at the close of 2019. Debt issuance in international markets during the first ten months of 2020 was 19% higher than in the same period last year. Sovereign bonds accounted for 40% of the total issued through October, followed by the private corporate sector (27% of the total) and quasi-sovereign bonds (20%).

BOND YIELDS IN SOUTHERN COUNTRIES Argentina 7Y 46,144 (0,000 (0,00%)) 43.300 - 43.300

50000

Chile 10Y 4,380 (+0,000 (+0,00%)) 116.323 - 116.323 Colombia 10Y 6,990 (+0,000 (+0,00%)) 104.525 - 105.005

40000 30000 20000 10000 0 -10000

Expiration date

Annual variation

Mexico 10Y 6,994 (+0,179 (+2,64%)) 107.287 - 107.401 Peru 10Y 5,407 (+0,000 (+0,00%)) 111.680 - 111.871

Source: Data taken from Investing. Own graph.

Financial flows to the region Another important aspect in the Latin American economy is the dynamics of financial flows to the region, which has been influenced by increases in global liquidity. The leading indicator of financial flows prepared by ECLAC shows that, in the third quarter of 2020, financial flows to the region continued on their recovery path, which coincides with the evolution of bond issues of the region’s countries in international markets. It is estimated that the average financial flows received by the region during that year allowed both to cover the current account deficit and to accumulate reserves.

On the other hand, after the increase experienced at the beginning of the COVID-19 crisis, the region’s

GDP evolution in Latin America It is then that economic growth, in the economies of South America, fell in the first three quarters to a rate of -7.7% of GDP year-on-year, compared to close to zero growth in the same period of the previous year.

The economies of Central America went from 3.2% GROWTH RATE growthLATIN in the AMERICA: first three quarters of 2019 to aAND 5.9%LEVEL O (IN PERCENTAG contraction in the same period of 2020. In the case of Central America and Mexico, the drop in growth in the first three quarters of 2020 was 9.2%, 9.6 percen4 tage points lower than in the same period of 2019.

2 0 -2 -4 -6

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The contraction of regional GDP is explained both by the significant decline in domestic demand in each of its components and by lower external demand. In terms of aggregate demand, there were sharp declines in all of its components: consumption, investment and exports.

In sectoral terms, ECLAC states that although the

current economic situation has had a negative impact on all sectors, it has done so with varying intensity depending on the sector: the most affected were manufacturing, construction, commerce and transportation, and the least affected were agriculture, essential services, financial services and mining.

LATIN AMERICA: GROWTH RATE AND LEVEL OF GDP, 2018-2020 GROWTH RATE (IN PERCENTAGES) 4 2 0 -2 -4 -6 -8 -10

Mexico and Central America Latin America South America

-12 -14 -16 -18 -20

Trim 1

Trim 2

Trim 3

Trim 4

Trim 1

2018

Trim 2

Trim 3

Trim 4

Trim 1

2019

Trim 2

2020

Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on official figures.

GROWTH BY EXPENDITURE COMPONENTS IN LATIN AMERICA Countries

Private consumption

Capital formation

Total exports 2020

Total imports 2020

(% change)

(2019) % GDP

(Millions of dollars)

(Millions of dollars)

Mexico

-0.7

19.40

416.999

382.985

Argentina

-0.7

14.54

54.884

37.081

Colombia

7

21.53

31.056

41.185

Chile

4

22.44

5.694

59.032

Peru

3

21.16

46.948

36.285

Venezuela

-24.8

21.62

5.020

6.550

Costa Rica

-4.13

17.66

12.173

14.941

Bolivia

3.7

19.87

973

7.080

Ecuador

-0.6

24.94

20.226

17.959

Paraguay

3.9

18.49

11.505

7.294

Uruguay

0.5

17.18

8.076

7.564

Dominican Republic

5.3

26

4.511

17.087

Honduras

3.1

22.29

4.150

9.871

Panama

2.3

40.41

10.356

15.358

Guatemala

4.3

14.51

11.513

18.206

El Salvador

1.7

19.1

5.030

1.001

Source: based on official information. Own calculations and graph.

84

Future outlook From another perspective, growth projections for Latin American and Caribbean economies in 2021 are positive (subject to change due to the current situation). A regional average growth rate of 3.7% is estimated. Indeed, 3.1 points of the projected growth rate for the region in 2021 corresponds to statistical carryover, which means that 3.7% would make it possible to recover 44% of the GDP loss recorded in 2020.

The analysis presented by ECLAC at the country level indicates that Chile and Brazil are the most indebted economies in the region (263% and 229% of GDP for the third quarter of 2020, respectively).

This is why liquidity expansion policies have managed to lower the cost of financing for the non-financial corporate sector. The interest rate differential for the corporate sector has narrowed substantially since the onset of the pandemic for high yield and investment grade bonds.

In the Economic Survey of Latin America and the Caribbean, 2020, ECLAC projects a scenario in which the region rebounds in 2021 and then returns to its average growth trajectory of the last decade of 1.8%. In this scenario, recovery to the 2019 GDP level would be achieved in 2024.

Similarly, the World Bank’s Global Economic Prospects report argues for a more optimistic scenario: “Regional economic activity is expected to grow by 3.7% in 2021, as pandemic mitigation”.

ANNUAL RATES OF CHANGE AT CONSTANT PRICES (2010) TOTAL GDP GDP PER CAPITA 10

5

Rate of change GDP

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

-5

1990

0

Per capita variation rate

Source: Economic Commission for Latin America and the Caribbean (ECLAC).

TOP 100 INTEGRATORS • REPORT 2022

85

GDP GROWTH RATE (2020) AND PROJECTIONS (2021-2022) December 2020

2021 projections %

2022 projections %

Growth Difference (2020-2021)

Growth Difference (2021-2022)

Brazil

-1.2

3.7

6.5

132.4

43,07

Mexico

3.1

5

2.5

38

-100

Argentina

-9.9

5.8

2.5

270.68

-132

Colombia

6.1

5.1

3

-19.6

-70

Chile

3.2

6.2

3

48.38

-106.6

Peru

0.51

8.5

3.9

94

-117.9

Venezuela

-30

-10

-5

-400

-300

Costa Rica

-4.5

2.9

4

-55.17

27.5

Bolivia

-6.2

4.4

3.5

-40.9

-25.71

Ecuador

-7.8

8.8

1.3

11.36

-576.9

Paraguay

-0.6

4

4

-85

100

Uruguay

-5.9

2.7

3.1

318.51

12.9

Dominican Republic

-6.7

4.8

4.5

239.583

-6.66

Honduras

-9

4.5

5.2

300

13.46

-17.9

2.6

7.8

788.4

66.66

Guatemala

3.6

3.1

3.4

-16.12

8.82

El Salvador

-7

5

4.4

240

-13.63

Countries

Panama

Source: based on official information from the region’s central banks. Own calculations and graph.

Note: The difference in growth expressed in percentage units is obtained by estimating the current GDP (projection with the previous GDP).

86

9 8

Inflation

7

Growth

6 5 4 3 2 1

ECLAC estimated in 2020 that year-on-year (December-December) average inflation in CARD (Central America and Dominican Republic) countries stood at 2.3%, 0.4 percentage points below that recorded in 2019 (2.7%). This slowdown was the result of a significant contraction in domestic demand, which offset the supply effects related to the temporary closure of economic activities.

ua y ru g

ru U

Pe

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Pa

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al

a M

Co

te m

bi

az Br

Expectations for inflation in 2020 and 2021

a

0

il

The region’s current account deficit narrowed sharply in 2020, driven by an increase in the current account surplus, by the increase in the goods surplus as a result of a sharp contraction in imports, its decline outpacing that of exports, so the goods account surplus increased in 2020.

INFLATION EXPECTATIONS 2021

G ua

ECLAC estimates that the economies of the CARD countries will have an average growth of 4.2% in 2021, to the extent that global economic activity recovers and the internal dynamics of consumption and investment are reestablished.

m

In terms of trade, for 2021, the WTO expects a rebound in trade volume with a growth of 7.2 %, in line with the expected rebound in global economic activity. In this regard, there is the possibility of a somewhat better performance than predicted in the event that vaccines or treatments for COVID-19 could be distributed more quickly.

In the case of expectations for 2021, the August 2020 surveys indicate that the simple average of growth expectations increased 0.1 percentage points from 3.8% to 3.9% and the simple average of inflation decreased 0.1 percentage points from 3.8% to 3.7% with respect to the July surveys. The countries where growth expectations for 2021 increased were Brazil, Mexico, Paraguay and Peru. In the case of inflation, Brazil, Paraguay and Uruguay recorded a drop in inflation expectations.

lo

In Central America, growth is expected to recover to 3.6% this year, supported by higher remittance inflows and stronger export demand, as well as reconstruction after two hurricanes. In the Caribbean, growth is expected to rebound to 4.5%, driven by a partial recovery in tourism.

The August 2020 expectations surveys conducted by the region’s Central Banks indicate that the simple average of growth expectations for 2020 decreased 0.1 percentage points from -5.9% to -6.0% and the simple average of inflation expectations increased 0.1 percentage points from 3.1% to 3.2% with respect to the July surveys. Changes in both inflation and growth expectations are heterogeneous among the countries analyzed.

Ch ile

Projected investment confidence and trade recovery

Source: Base information - Report “Disclosure of Expectations in Latin America” of the Inter-American Development Bank (IDB).

Own calculations and graph.

In the case of expectations for 2021, this year’s May surveys indicate that the simple average of growth expectations increased by 0.2 percentage points, from 3.4% to 3.6%, and the simple average of inflation expectations increased by 0.1 percentage points, from 4.0% to 4.1%, with respect to the April surveys. The only country where growth expectations decreased was Uruguay.

TOP 100 INTEGRATORS • REPORT 2022

87

Impact on the level of investment and capital flows within the Electronic Security industry The pandemic accelerated corporate cybersecurity investment. According to BCG’s analysis, based on Gartner data, investment in cybersecurity will grow at a rate of approximately 8% in Latin America until 2024.

For Marcial Gonzalez, Managing Director and Partner at BCG, “the pandemic forced companies to multiply their technology efforts as they had to operate with their remote workforce or a large part of it. Risks to systems increased with telecommuting, so investment in cybersecurity accelerated in 2020, contrary to what happened with other areas where investment was slowed by the crisis.”

According to a study by the United Nations Regional Center, such growth can be associated with a number of variables including increased levels of crime and insecurity, changes in the approach to public security, reallocation of resources, and increased economic growth. According to the Inter-American Development Bank (IDB), the cost of crime is equivalent to 3% of GDP in Latin American and Caribbean countries, of which 37% is private spending.

On the other hand, BCG’s analysis, based on Gartner data, in 2020 global corporate spending on cybersecurity was around $151 billion. Over the next four years, this item is expected to grow by almost 9%. If so, it would reach $211 billion in 2024.

As for the opportunities that may arise this year for cloud security in multi-cloud and hybrid environments, Carlo Davila, senior analyst at IDC LA Tech CMO Forum 2021, indicated that as organizations increase their consumption of cloud services, security will also change adoption models with a clear impact on opportunities to adjust to the adoption of IaaS, PaaS, SaaS Apps and SaaS Infra (39%, 47%, 25%, and 29% growth respectively), leaving cloud security with a 20% share of total investment in security products.

It is worth noting that in the last decade there has been a growth in security and surveillance services in Latin America, with an average annual growth rate of 8%, almost double the global rate of expansion of private security, which allows for an increase in the acquisition of security equipment and systems.

In that sense, he warns that the cloud is the main platform for most initiatives, there are more local provisioning offerings in more geographies, all segments are moving their core systems to the public cloud and there is a predominance of hybrid solutions in Latin America.

88

EXPORT GROWTH AND TRADE BALANCE IN MEXICO AND CENTRAL AMERICA 2019 % EXPORT GROWTH 2019*

2,4%

-0,7%

3,2%

4,5%

-4,5%

Fuente: Cepal

TRADE BALANCE 2019* Mexico -7.790

Costa Rica 1.845

Guatemala -8.234

Honduras -4.388

Nicaragua -964

Panama -3.256

Dominican Republic -3.400

In US Dollars. *Estimate by ECLAC * Note: latest available data (2019).

TOP 100 INTEGRATORS • REPORT 2022

89

Mexico, Central America and the Caribbean

Mexico

MEXICO: GDP AND UNEMPLOYMENT, 2018-2020

The Mexican economy will plummet by -10.2% in 2020, according to the results of the survey conducted in August 2020 by the Bank of Mexico among 36 specialists from the private and foreign sectors, coinciding with ECLAC’s estimates of a -9.0% decrease, the largest contraction of the country’s economic activity since 1932.

ECLAC estimated that inflation in 2020 would be 3.5%, due to the increase in the price of agricultural products, medical supplies, medicines, gasoline and public services, as well as the exchange rate depreciation. For its part, the unemployment rate would be at 5.1%, with a loss, between January and October 2020, of 518,609 formal jobs registered in the Mexican Social Security Institute (IMSS), compared to 2019.

From January to October 2020, the values of total merchandise exports and imports fell 12.6% and 18.8%, respectively, although the Organization for Economic Cooperation and Development (OECD) notes that exports have revived, driven by the reMEXICO: GDP AND bound in the US.

UNEMPLOYMENT, 2018-2020

6

4 2

5

0 -2

4

-4 -6

3

-8 -10

2

-12 -14

1

-16 -18 -20

T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

4 -4 The Bank of Mexico made the projection for 2022, -6 from 3.3% to 3%. Regarding consumer confidence, -8 3 according to seasonally adjusted figures from the -10 -12 National Institute of Statistics and Geography 2(Ine-14 gi), the Consumer Confidence Indicator (ICC) advan-16 1 ced 11.5 points in its annual comparison, reaching a -18 level of 42.7 points.

-20 0 T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

In the case of investment, Mexico’s attraction to caGDP, VARIATION RATE OVER 4 QUARTERS. pital flows has been maintained, with US$11.864 trillionINFLATION, in net FDIVARIATION inflows in RATE the first quarter of 2021, an OVER 12 MONTHS. increase of 14.8% and the highest amount a first UNEMPLOYMENT, VARIATION RATE OVER 12for MONTHS. quarter.

Source: ECLAC, based on official data

90

32,1% CHINA

13% USA

20,4% KOREA

8,6% PHILIPPINES

19% OTHERS UNTIL AUGUST 8, 2021

Source: Descartes Datamyne - Inegi.

UN

Sour

-2

T2 T3 2018

0

GDP, VARIATION RATE OVER 4 QUARTERS.

ECLAC forecasts a 3.8% growth in Mexico’s GDP for 4 6 2021.

For its part, the OECD forecasts GDP growth 2 0 3.6%. at 5

T1

IM SE

6,9% TAIWAN

Costa Rica

COSTA RICA: GDP AND UNEMPLOYMENT, 2018-2020

By 2020, the Costa Rican economy had a contraction of -4.8% of GDP due to the imposition of physical distancing measures and mobility restrictions due to the pandemic, and the fall in international trade of goods and services, according to ECLAC. This drop was the second largest contraction in economic activity since 1950, after the -7.3% decline recorded in 1982.

In this regard, the OECD notes that employment in the country is beginning to recover and the unemployment rate has fallen slightly from 24.4% in July to 23.2% in August. Labor-intensive service sectors, such as hospitality, retail, transportation services, domestic services and construction, are the most affected by the pandemic.

The agency forecasts a GDP recovery of 2% by 2021 and a stronger recovery (3.8%) by 2022. For its part, ECLAC estimates a 3.0% growth in 2021.

On the other hand, the Central Bank of Costa Rica (BCCR) highlights an improvement in the macroecoCOSTA RICA: GDP AND nomic scenario that is reflected in various indicators UNEMPLOYMENT, 2018-2020 for the end of the year and for 2022 forecasts. It also emphasizes that the evolution of the main indicators 5 24 of 4 the external sector would be conditioned by the 22 3 recovery of the local economic activity and of the 2 20 main commercial partners.

1 18

5 4 3 2 1 0 -1 -2 -3 -4 -5 -6 -7 -8 -9 -10

T1

T2

T3

T4

2018

T1

T2

T3 2019

T4

T1

T2

T3

IM SE 24 22 20 18 16 14 12 10 8 4 4 2 0

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Sour

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

0 16 -1 14 Consumer confidence was severely affected. Howe-2 12 -3 ver, for 2021, the Central Bank projects a gradual -4 10 -5 recovery of domestic demand, mainly driven 8 by -6 the vaccination campaign and the possibility4 of a -7 4 -8 return to normality. Domestic demand is expected 2 -9 to recover, with a growth of 2.4%, on average, -10 0 for T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3

2021-2022.

2018

2019

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

UN

51,1% USA

6,2% PANAMA

20,8% CHINA

5,4% HONG KONG

17% OTHERS UNTIL JULY 31, 2021

Source: Descartes Datamyne - National Customs Service.

TOP 100 INTEGRATORS • REPORT 2022

91

El Salvador In 2020, El Salvador’s GDP contracted by -8.6% (versus a 2.4% expansion in 2019), due to the temporary cessation of economic activity due to the COVID-19 pandemic, according to ECLAC. This would be the third steepest decline in output since 1950, after -11.8% in 1980 and -10.5% in 1981, the years of the beginning of the civil war.

The Central Reserve Bank of El Salvador indicated in September 2020 that during the first six months of the year “a contraction of -9.3% of the GDP is reflected, which did not have a greater dimension thanks to the implementation of policies aimed at supporting the income and consumption of households through cash transfers and food packages”.

The country also presented a strong increase in unemployment, with the loss of some 60,000 jobs, according to data from the Ministry of Economy, raising to 8.24% the unemployment rate which had been at 6.3%.

EL SALVADOR: GDP AND As for international trade, between January and INFLATION, 2018-2020 October 2020, exports amounted to 4.087 billion

3

4 2

2

0 -2

1

-4 -6 -8

0

-10 -12 -14

-1 -2

-16 -18 -20

T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

-4 -6 ECLAC -8

Source: ECLAC, based on official data

F

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

1

-2

According to Ipsos, a global market research com-3 T1 on T2 the T3 Consumer T4 T1 T2Confidence T3 T4 T1Index T2 T3 pany, (ICC), “El 2019 2020 Salvador 2018 registered an important improvement of +18.0 points, reaching 57.3.

-20

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

92

-3

INFLATION, VARIATION RATE OVER 12 MONTHS.

expects the Salvadoran economy to recover 0 by 3.5 % in 2021, driven by an increase in public and -10 private investment, private consumption and the -1 ex-12 -14 ternal sector. Inflation will be close to 1%.

-16 -18

T3

GDP, VARIATION RATE OVER 4 QUARTERS.

dollars, with a contraction of 18.8% year-on-year, 3 while accumulated imports amounted to 8.514 bi4 2 llion dollars, representing a year-on-year reduction 2 0 of 15.7%.

-2

I S

EL SALVADOR: GDP AND INFLATION, 2018-2020

23,7% USA

11,5% CHINA

19,4% FINLAND

8,6% MEXICO

22,1%, OTHERS

7,7% HONG KONG

UNTIL DECEMBER 2020

7,1% SPAIN

Fuente: ITC - Central Reserve Bank of El Salvador.

Guatemala

I S

GUATEMALA: GDP AND INFLATION, 2018-2020

ECLAC estimates that in 2020 Guatemala’s GDP will have contracted -2.5%, compared to the 3.8% growth presented in 2019, caused by the confinement measures to face the pandemic, although it estimates a 3.5% rebound by 2021.

Significant efforts by the Guatemalan government to offer fiscal stimuli to companies, the creation or increase of social programs aimed at families and the reduction of tax revenues led the country to end 2020 with a deficit of 5.3% of GDP, but an external debt of 31.6%, the lowest in the region.

However, inflation stood at 5.46%, almost five tenths above the upper limit of the central bank’s target range (between 3% and 5%).

From January to October 2020, the value of total exports of goods decreased at a year-on-year rate of 0.1%, while that of imports fell by 11.1%. Imports of consumer goods decreased by 8% during the first eight months of the year and those of capital goods GUATEMALA: GDP AND by 7.2%.

INFLATION, 2018-2020

6

6 5

5

4

4

3

3

2

2

1 0

1 T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

0

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

S

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

On the other hand, regarding the consumer confidence index, for this 2021 Guatemala registered an 6 improvement of +7.6 points, reaching 43.9. 6 5

5

In4 the Investment Index, an improvement of +3.9 4 points was registered, which allows it to remain in 3 the top third together with El Salvador (61.6), 3 the United States (50.2) and Puerto Rico (49.2).

2 2

1 0

1 T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

0

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

36,0% USA

14,2% MEXICO

17,9% OTHERS

9,8% HONG KONG

16,6% CHINA

5,2% VIETNAM

UNTIL DECEMBER 2020.

Source: (ITC) - Central Bank of Guatemala.

TOP 100 INTEGRATORS • REPORT 2022

93

Panama

PANAMA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 3

IM S

5

Despite the fact that the World Bank highlighted in 2019 that “Panama has been one of the fastest growing economies worldwide”, with an average of 5% in the last five years, the pandemic collapsed the positive outlook and ECLAC estimates a contraction of -11.0% for 2020, which represents the setback of a decade for the Panamanian economy.

ECLAC estimates that inflation would again be in negative territory, with a decrease of 1.0% in 2020 and 0.1% in 2019), due to weak demand, while the unemployment rate would exceed 10% at the end of the year compared to 5.8% in 2019.

In terms of international trade, between January and August 2020, the value of total exports of goods fell by 23.7% compared to 2019, while imports of goods into the country (excluding the Colon Free Zone) fell by 41.2%.

The largest contraction corresponds to imports of

PANAMA: GDP,although INFLATION AND capital goods (52.7%), imports of consumer goods and intermediate2018-2020 goods also recorded UNEMPLOYMENT, 3

5significant

drops in the period (39.1% and 32.4%, Pa0respectively). The same agency projects that the 2 namanian economy will recover 5.5% in 2021.

-5

0

2

-5 1

-10 -15

0

-20 -1

-25 -30

-2

-35 -40

T1

T2

T3

2018

T4

T1

T2

T3

2019

T4

T1

T2

T3

-3

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

So

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

1

-10

The Panamanian Consumer Confidence Index (ICCP), -15in charge of the pollster The Marketing Group, ac0 -20cording to last May’s measurement, reached 105 -1 of -25points, 5 units higher than the previous one, March 2021, informed the Chamber of Commerce, -30 Industries and Agriculture of Panama (CCIAP). -2 -35 -40

T1

T2

T3

T4

T1

T2

T3

T4

T1

T2

T3

-3 40,8% USA

8,1% COLON FREE ZONE

GDP, VARIATION RATE OVER 4 QUARTERS.

26,0% CHINA

6,8% BRAZIL

INFLATION, VARIATION RATE OVER 12 MONTHS.

18,3% OTHERS

2018

2019

2020

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

94

UNTIL JULY 31, 2021

Source: Descartes Datamyne - National Customs Authority.

Honduras

HONDURAS: GDP AND INFLATION 2018-2020

The COVID-19 pandemic significantly affected the economy of Honduras. The country’s GDP was expected to contract by 9 % in 2020 due to the pandemic and the two successive hurricanes. Some 45 % of households, according to World Bank surveys, reported income losses in August.

IM S

5

6

4 2 2

5

-2

4

-4 -6

3

-8 -10

2

-12

Projections suggest that the proportion of people living below the $5.50 a day poverty line could rise to 55.4 percent in 2020, resulting in more than 700,000 new poor, while inequality increases slightly.

From another angle, Honduras’ economy is expected to rebound in 2021 to 4.5 percent growth, amid the revival of domestic economic activity and the recovery of investment and external demand.

Around trade from January to September 2020, exports of Honduran companies amounted to $3,262 million, an amount that exceeds by 0.3% what was reported in the same period of 2019, a rise that is HONDURAS: AND recorded after severalGDP drops in sales, which were generated by the health and economic crisis.

INFLATION 2018-2020

-14 1

-16 -18 -20

T1

T2

T3

T4

2018

T1

T2

T3

T4

2019

T1

T2

T3

0

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

So

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

5

6 4During the third quarter of 2020, Honduras received 2 5 323.5 million dollars of Foreign Direct Investment 2

-2(FDI),

75.9 percent higher than the same period of 4 For this 2021, growth is associated with the -6 maquila, agriculture, and construction sectors. 3 -8 -42019.

-10

2

-12 -14

1

-16 -18 -20

T1

T2

T3

2018

T4

T1

T2

T3

2019

T4

T1

T2

T3

0

2020 30,2% CHINA 26,4% USA

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

15,3% ESTONIA 8,5% MEXICO

19,60% OTHERS UNTIL MARCH 3, 2020. * LATEST AVAILABLE DATA.

Source: Descartes Datamyne - (INE)

TOP 100 INTEGRATORS • REPORT 2022

95

Dominican Republic After a negative year-end of -6.7% of its gross domestic product (GDP) in 2020, the economy of the Dominican Republic will reach a growth of 4.8% in 2021 and 4.5% in 2022, well above the projected growth for the region of 3.7% for this year and of most Latin American countries.

Until the end of September, the Dominican economy had fallen by around 8%, especially due to the collapse of tourism, the country’s main economic sector. The rest of the sectors have been returning to economic recovery.

In the case of foreign trade, total exports of goods as of March 2021 reached some US 2,89 billion, which represented a growth of 7.5% with respect to January-March 2020, or an additional US$203.1 million.

For 2021 imports show a marked inter-annual growth of 27.4% in the month of March, highlighting DOMINICAN REP: GDP, INFLATION non-oil imports with an increase of 19.4%, which is AND UNEMPLOYMENT, 2018-2020 in line with the reactivation of economic activity. In 10 the January-March quarter, total imports grew 89.9% 8 compared to the same period of the previous year.

7

DOMINICAN REP: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 10 8 6 4 2 0 -2 -4 -6 -8 -10 -12 -14 -16 -18 -20

8 7 6 5 4 3 2 1 T1

T2

T3

T4

2018

T1

T2

T3

2019

T4

T1

T2

T3

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

96

0

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

UN

Fuen

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

6 4 2 Likewise, foreign investment grew by 4% up to6Sep0 tember, totaling US 2,066 billion for the year,5 and -2 -4 remittances grew by 34%. However, inflation, which 4 -6 accumulated an increase of 3.74%, will maintain the -8 3 target set by the Central Bank of 4% with a range of -10 -12 one point of oscillation in both directions.

2 -14 -16 1 Regarding the consumer confidence index, the Do-18 -20 0 minican improvement T1 T2Republic T3 T4 registered T1 T2 T3anT4 T1 T2 T3 of +1.5

points, reaching 35.1. The index showed 2018 2019investment 2020 an improvement of +1.2 points.

GDP, VARIATION RATE OVER 4 QUARTERS.

IM SE

51,9% CHINA

5,5% MEXICO

26,4% USA

2,5% SPAIN

13,4% OTHERS UNTIL DECEMBER 2020

Fuente: (ITC) - National Statistics Office, Dominican Republic.

EXPORTS AND TRADE BALANCE IN THE ANDEAN REGION AND THE SOUTHERN CONE 2019 % EXPORT GROWTH 2019* TRADE BALANCE 2019*

-3,3%

-33,3%

Colombia

Venezuela

2,1%

Ecuador Brazil -4,8%

-7%

Peru

-2,7%

-61,4%

Paraguay

Bolivia -0,8%

-6,6%

4,1%

Uruguay

Argentina

Bolivia -2.461 Colombia -12.983 Ecuador -2.586 Peru 2.493 Venezuela ND Brazil 3.128 Argentina 10.057 Chile -1.767 Paraguay 272 Uruguay 3.870 In US Dollars *Estimation by ECLAC

Chile Source: IADB and ECLAC

TOP 100 INTEGRATORS • REPORT 2022

97

Andean Region

Bolivia

BOLIVIA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

Health measures to contain COVID-19 infections led to an economic crisis that caused the Bolivian economy to contract by -8.0% in 2020, with a significant increase in the unemployment rate and moderate inflation of 1.5%, ECLAC revealed.

In addition to tax deferrals (representing 1.5% of GDP), measures to address the economic crisis include transfers to different segments of the population (1.7% of GDP), credit to companies and support for employment (1.2% of GDP), as well as discounts on basic services (0.3% of GDP).

IMP SEC

6

6

5

2 -2

4

-6

3

-10

2 -14

1

-18 -20

T1

T2 T3 2018

T4

T1

T2

T3 2019

T4

T1

T3 T2 2020

0

GDP, VARIATION RATE OVER 4 QUARTERS.

The outlook for ECLAC shows that “extreme poverty will reach 16.8% this year, with a greater increase in unemployment, causing a significant deterioration in the levels of poverty and inequality”, warned Alicia Bárcena, Executive Secretary of the organization, at the end of 2020.

The National Statistics Institute (INE) reported that, at the end of the third quarter of 2020, the unemBOLIVIA: GDP, INFLATION ployment rate was 10.76%, and although itAND dropped to 8.39% in the fourth quarter,

by January 2021 it UNEMPLOYMENT, 2018-2020 would have risen again to 9.67%. However, ECLAC is also optimistic for 2021, forecasting a slight 6 reco6 very of economic activity, with growth of around 3%, 5 indicating that it will be limited by the “weakness of 2 external demand”.

-2 4

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Source

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

-6 3 year In the first four months of 2021, imports this -10 reached a value of 2,643 million dollars, an increase 2 of 361 million (16%) over the same period of 2020.

-14

1

-18 -20

T1

T2 T3 2018

T4

T1

T2

T3 2019

T4

T1

T3 T2 2020

0 45,7% CHINA

GDP, VARIATION RATE OVER 4 QUARTERS.

25,0% OTHERS

INFLATION, VARIATION RATE OVER 12 MONTHS.

13,3% BRAZIL

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

98

UNTIL DECEMBER 2020

Source: ITC - Pro-Bolivia

UNT

11,4% SPAIN 4,4% MEXICO

Colombia

COLOMBIA: GDP, INFLATION AND IMP SEC UNEMPLOYMENT, 2018-2020

The Colombian GDP will have decreased -7.0% in 2020, according to ECLAC, added to the strong increase in unemployment and sovereign debt, reaching historic highs, which according to the Ministry of Finance, even reached 65.7% of the GDP, in order to meet the needs due to the coronavirus emergency, leaving Colombia among the “most indebted” countries in the region.

However, according to export information processed by DANE and DIAN, in April 2021 the country’s external sales were US$2,914.7 billion FOB and presented an increase of 56.3 % in relation to April 2020; this result was mainly due to the 63.4% growth in external sales of the group of fuels and products of extractive industries.

4

20

2

18

0

16

-2

14

-4

12

-6

10

-8

8

-10 -12

6

-14

4

-16

2

-18

T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

0

5

2

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

In the case of imports registered before the DIAN in March 2021, imports were US$4,934.8 million CIF and presented an increase of 37.5% in relation to the same month of 2020.

According to the April results of the Consumer OpiCOLOMBIA: GDP, INFLATION AND nion Survey (EOC), the Consumer Confidence Index registered a balance of -34.3%.

UNEMPLOYMENT, 2018-2020

Source

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

4 Foreign investment in Colombia grew 66% in 20 the 2 first quarter of 2021. According to the entity,18 bet0 16 ween January and March 2021, Colombia received -2 33 new projects with estimated business for 14 1,595 -4 12 million dollars, while last year in the same period it -6 10 was 960 million dollars.

-8

8

-10

Both -12

6 the the IMF and ECLAC are optimistic about 4 -14 recovery for 2021, expecting GDP to rebound to 2 -16 3.7% and 5.0% respectively.

-18

T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

0

GDP, VARIATION RATE OVER 4 QUARTERS.

53,3% CHINA

20,0% OTHERS

20,2% USA

6,10% MEXICO

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

UNTI

UNTIL JULY 31, 2021

Source: Descartes Datamyne - DIAN.

TOP 100 INTEGRATORS • REPORT 2022

99

Ecuador

ECUADOR: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

ECLAC estimates a sharp contraction of the Ecuadorian GDP of -9.0% in 2020, in an economy that had already been showing weak growth in 2019, of only 0.1%, partly as a consequence of the social uprising of October of that year, which left losses of USD 2.8 billion according to the unions, although the Central Bank of Ecuador indicated that this figure would be around USD 821 million.

5

5

3

4

1

3

-1 -3

2

-5

1

-7 -9

0

-11

The Central Bank of Ecuador estimates that by 2021 the economy will recover and grow 3.1%, equivalent to a Gross Domestic Product (GDP) of US$ 67,539 billion in constant values.

Regarding foreign trade, for 2021, non-oil exports are projected to grow between 4% and 5 %. On the other hand, imports of goods and services would grow by 3.2% compared to 2020, a percentage that corresponds to USD 936.6 million.

Regarding the ICC, the outlook is not so encouraging, since it worsened compared to the same ECUADOR: INFLATION month of 2020: it GDP, went from 37.10 points toAND 31.19 points. On the other hand, the labor market contiUNEMPLOYMENT, 2018-2020 nued to deteriorate between September 2019 and September 2020, with an increase of 28% in5 unem5 ployment and 11.6 % in underemployment in 3 4 2020.

1 Among Latin American countries, ECLAC maintains 3 a-1 very moderate growth forecast for 2021, only 1%.

-3

T1

T2

T3

T4

2018

T1

T2

T3

T4

2019

T1

T2

T3

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

-9

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

0

-11

-1

-13 T1

T2

T3

2018

T4

T1

T2

T3

T4

2019

T1

T2

T3

-2

2020

GDP, VARIATION RATE OVER 4 QUARTERS.

36,7% CHINA 32,6% USA

25,9% HONG KONG 4,8% OTHERS

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

100

UN

Sour

1

-7

-2

2020

2

-5

-15

-1

-13 -15

IM SE

UNTIL JULY 31, 2021

Source: Descartes Datamyne - National Customs Service.

Peru

PERU: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

With a GDP contraction of 12.9%, the Peruvian economy is one of the hardest hit in the world by COVID-19, with a severe production shutdown that led to strict confinement, which lasted several months.

10

4 1 -2

8

-5 -8

The reason for this sharp drop is due to “the abrupt economic slowdown in the United States and China, which has disrupted supply chains in Mexico and Brazil, leading to a sharp drop in exports from commodity-producing economies such as Chile and Peru,” the World Bank stressed in a statement at the end of 2020.

Peru would be one of the Latin American countries that would be “worst off” after the pandemic, suffering a sharp increase in poverty (9.3%), along with Argentina, Ecuador and Panama. Inflation, meanwhile, remained under control at 2.1%, within the target, despite the depreciation of the sol throughout the year.

On the other hand, although credit to companies

PERU: GDP, INFLATION strengthened, mainly for paymentsAND to suppliers, employees and other debts, 2018-2020 consumer credit conUNEMPLOYMENT,

tracted, hit by the marked deterioration of the labor market, which reached 17.1% in the third quarter 10 of 4 the year.

1

IM SE

6

-11 -14

4

-17 -20 -23

2

-26 -29 -32

T1

T2

T3

2018

T4

T1

T2

T3

2019

T4

T1

T2

T3

0

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Sourc

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

8

-2

-5 ECLAC estimates a rebound of 9.0% of GDP by 2021, -8 6 be although it emphasizes that “this dynamism will -11 insufficient to recover pre-crisis GDP and production -14 -17 levels” and recovery will take even more time. 4 -20 -23

2

-26 -29 -32

T1

T2

T3

2018

T4

T1

T2

T3

2019

T4

T1

T2

T3

0

2020

GDP, VARIATION RATE OVER 4 QUARTERS.

36,7% CHINA 32,8% USA

25,7% OTHERS 4,8% SPAIN

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

UN

UNTIL JULY 31, 2021

Source: Descartes Datamyne - Sunat.

TOP 100 INTEGRATORS • REPORT 2022

101

Cono Sur

Argentina La economía argentina venía en recesión desde antes de la llegada del COVID-19, con una caída del PIB del -3 %, agudizado con la pandemia, llevando a una contracción del -11,8 % para 2020, según indicó la CEPAL, y aunque tanto este organismo como la OCDE anticipan una moderada recuperación de entre el 3,7 % y el 4,9 % entre 2021 y 2022.

A pesar de lo anterior, se presentaron efectos negativos en el consumo privado (-14,5 %), las exportaciones (-8,7 %) y el consumo público (-5,5 %), aunque esta dinámica también se vio compensada por el descenso del -23 % en las importaciones.

Para el 2021 el Índice de Confianza del Consumidor a nivel nacional aumentó 0,3 % con respecto al registro de abril y acumula una contracción de 7,8 % en la comparación interanual.

Por otro lado, la inflación alcanzó un 43,5 % interanual en el acumulado a octubre, frente al promedio del 2019 (del 53,5 %), asociado al congelamienARGENTINA: GDP,deINFLATION to de los precios regulados productos. En cuanto al desempleo, aumentó a 13,1 % en el segundo triAND UNEMPLOYMENT, mestre de 2020, aunque la CEPAL espera que este 2018-2020 indicador mejore en 2021.

6

55

4 2

50

6

55

4 2

50 40 35

-4 -6 -8

30 25

-10 -12 -14

20 15 10 5

-16 -18 -20

T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

30 25 20 15 10 5

-16 -18 T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

0 47,7% CHINA

7,4% BRAZIL

GDP, VARIATION RATE OVER 4 QUARTERS.

28,7% OTHERS

4,4% USA

INFLATION, VARIATION RATE OVER 12 MONTHS.

11,5% VIETNAM

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

102

UNTI

Source

35

-10 -12 -14

0

GDP, VARIATION RATE OVER 4 QUARTERS.

40

-4 -6 -8

IMP SEC

45

0 -2

45

0 -2

-20

ARGENTINA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

UNTIL DECEMBER 2020

Source: (ITC) - National Institute of Statistics and Censuses

Chile En 2020, Chile enfrentó una de las peores crisis económicas de su historia desde 1982, con una contracción de la economía del -6,0 %, que inició con la crisis social vivida en el país en el último trimestre de 2019 y que se recrudeció por el cierre de fronteras, las cuarentenas y la suspensión de muchas actividades económicas para controlar el avance del COVID-19, llevando a la caída de la demanda interna, un menor nivel de producción y el aumento del desempleo.

Aunque inicialmente los organismos como el FMI y la CEPAL estimaron contracciones del -7,9 %, a partir del cuarto trimestre se observa una incipiente recuperación de la actividad debido al retiro gradual de las medidas sanitarias y como efecto de las medidas económicas, permitiendo una leve recuperación al finalizar el año, y la CEPAL y la OCDE ahora estiman una recuperación del PIB de entre el 4,2 % y el 5 % para 2021.

De acuerdo a las cifras del Reporte de Comercio Exterior elaborado por el Departamento de Estudios CHILE: INFLATION del ServicioGDP, Nacional de Aduanas, entre enero y abril del 2021UNEMPLOYMENT, nuevamente hubo cifras alentadoras para AND el comercio exterior, con un intercambio comercial 2018-2020 de Chile con el mundo que creció 25,6 % al 14 sumar 7 USD 51.281 millones.

13 5

CHILE: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

IMP SEC

7 5 3 1

-1 -3 -5 -7 -9 -11 -13 -15

T1

T2

T3

T4

2018

T1

T2

T3

2019

T4

T1

T2

T3

14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

4

2020

2

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Source:

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

12 11 Para este mismo período, las exportaciones del país 1 10 alcanzaron los USD 28.795,8 millones, con 9un au-1 8 mento de 21.4 % en relación con igual período del -3 7 -5 año 2020. Las importaciones, en tanto, totalizaron 6 -7 USD 24.324 millones, aumentando 32,1 %. 5 4 -9 3 -11 La Facultad de Economía y Negocios de la Universi2 -13 1 predad del Desarrollo (UDD) junto a la AMCHAM, -15 0 3

sentaron segunda Confianza T1 T2 la T3 T4 T1 versión T2 T3 del T4 Índice T1 T2deT3 de la Inversión Extranjera Directa en Chile, que con2018 2019 2020 tó con la participación de 190 empresas de GDP, VARIATION RATE OVER 4 QUARTERS. diversos países de origen y sectores económicos, equivalenINFLATION, VARIATION RATE OVER 12 MONTHS. tes 55 % de la inversión extranjera directa que llega UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. al país.

Source: ECLAC, based on official data

47,4% CHINA 28,0% OTHERS

UNTI

19,5% USA 5,6% MEXICO

UNTIL JULY 31, 2021

Source: Descartes Datamyne - National Customs Service.

TOP 100 INTEGRATORS • REPORT 2022

103

Paraguay The Paraguayan economy will end 2020 with a contraction of -1.6%, thanks to a decisive fiscal policy response to contain the COVID-19 pandemic, although this will result in a deterioration of the central administration’s fiscal deficit of 6.5% of GDP, ECLAC indicated.

The Central Bank of Paraguay (BCP) indicated that the GDP contraction was only 0.6%.

Economic activity contracted by -0.9 % during the first half of 2020, due to the impact of the sanitary measures to face the crisis. This dynamism leads ECLAC to estimate a 3.5% growth in Paraguay’s GDP for 2021, which will result in a slight rise in inflation, which will remain within the government’s target range.

In the same year, foreign trade operations recorded positive data, according to the Central Bank of Paraguay (BCP). Total exports as of April 2021 reached a value of US $4,2 billion, 16.4% higher than the US PARAGUAY: GDP, $3,6 billion as of April 2020.INFLATION

AND UNEMPLOYMENT,

On the side of imports up to February 2021 they had 2018-2020 reached US $1,697.8 million, 12.7% lower compared 9 10 to the same period of the previous year.

10

9

8

8

6

7

4

6

2

5

0

4

-2

3

-4

2

-6

1 0

-8 T1

T2

T3

T4

2018

T1

T2

T3

2019

T4

T1

T2 2020

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

2

-6

1

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

0

-8 T1

T2

T3

2018

T4

T1

T2

T3

2019

T4

T1

T2

T3

2020

GDP, VARIATION RATE OVER 4 QUARTERS.

52,6% USA 22,0% CHINA

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

104

UNTIL DECEMBER 2020

Source: (ITC) - Central Bank of Paraguay.

UN

Sourc

7 6 According to the Central Bank of Paraguay, Foreign 6 4 Direct Investment (FDI) grew by 8.9% during 2020, a 2 5 positive figure considering the context of the global 0 health crisis and the consequent economic and4 com3 -2 mercial stagnation generated at international level.

-4

T3

GDP, VARIATION RATE OVER 4 QUARTERS.

8

8

IM SE

PARAGUAY: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

18,8% OTHERS 6,4% BRAZIL

Uruguay Although the Uruguayan country did not have a contraction in its GDP as strongly as other countries in the region, ECLAC estimated that there was a decrease of -4.5% in 2020 and projects a recovery of 4.3% for 2021.

URUGUAY: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 4

IM SE 12

2 0

8

-2 -4

Foreign trade was one of the main factors driving the recovery of the Uruguayan economy during the last quarter of 2020, a trend that would continue in the first quarter of 2021, added to the fact that during the second quarter of 2020 the construction of the country’s third pulp mill began, “so it is possible that private investment, very depressed in the last six years, will become active again”, ECLAC predicted.

However, the unemployment indicator had been increasing since the months prior to the pandemic, and as of September it stood at 11%, two points higher than in the same month of 2019.

In the first quarter of 2021, exports totaled US $2,1

URUGUAY: GDP, INFLATION billion, which implies an increase of 19.3% over what was exported in the first quarter of 2020.

AND UNEMPLOYMENT, 2018-2020 12 The Consumer Confidence Index (CCI) for the month

-6

4

-8 -10 -12

T1

T2

T3

T4

2018

T1

T2

T3 2019

T4

T1

T2

T3

0

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Sou

IMPORTS OF ELECTRONIC SECURITY EQUIPMENT

4

of May 2021, prepared based on surveys in Uruguay, 2 shows an increase of 1.6 points. With a score of 49.7 0 in May, although the index still remains at the 8 mo-2 derate pessimism level, it is very close to the limit of -4 moderate optimism (from 50 points). Compared to May 2020, the index is 4.1 points higher.

-6 4 -8 -10 -12

T1

T2

T3 2018

T4

T1

T2

T3 2019

T4

T1

T2

T3

0

2020

34,2% USA

10,0% BRAZIL

GDP, VARIATION RATE OVER 4 QUARTERS.

31,4% CHINA

5,9% GERMANY

INFLATION, VARIATION RATE OVER 12 MONTHS.

13,5% OTHERS

5,0% JAPAN

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

U

UNTIL MAY 31, 2021

Source: Descartes Datamyne - National Customs Service.

TOP 100 INTEGRATORS • REPORT 2022

105

CAPÍTULO 7 106

CYBERSECURITY IN LATIN AMERICA: GROWTH AND MAIN THREATS

Figura 4 Evolution of policy and capacities based on the OAS & IDB Haiti Dominica El Salvador Venezuela Granada Belice Santa Lucia Saint Kitts y Nevis San Vicente y las Granadisimas Surinam Guatemala Antigua y Barbuda Bahamas Honduras Peru Ecuador Bolivia Barbados Nicaragua Jamaica Argentina Panama Costa Rica Trinidad y Tobago Brazil Paraguay Republica Dominicana Guyana Mexico Chile Colombia Uruguay 0,0

10,0

20,0 2020

30,0

40,0

50,0

60,0

70,0

80,0

2016

Fuente: University of Chile, report “Challenges and opportunities in Latin America’s cybersecurity in the face of the global context of cyber threats to national security and foreign policy”.

2020 was a great challenge for global cybersecurity.

Covid-19 has brought about major changes in the markets. In this sense, cybersecurity has had to face the challenge of addressing a secure telework environment, the challenge of disinformation, the challenge of cybersecurity in sectors as critical at this time as healthcare, and especially the corporate sector which is much more exposed to cyberattacks.

The cybersecurity market size exceeded US$150 billion in 2019 and analysts claim it is poised to grow at over 15% CAGR between 2020 and 2026. The industry growth is attributed to the increase in demand for robust and secure networks by enterprises for

secure access to data.

The cybersecurity industry landscape is characterized by the increasing adoption of security software and solutions across various industry verticals to address the growing threat caused by cyber-attacks.

Different forms of cybercrime, such as hacking and phishing, have increased rapidly, especially after the increased use of the Internet during the COVID-19 quarantine phase. This has led to business disruptions and financial losses worldwide.

It is then that the level of investment in cybersecurity becomes increasingly important. By 2019, according TOP 100 INTEGRATORS • REPORT 2022

107

to the consulting firm Return Comstor, “cybersecurity represents a billion-dollar business in Latin America, as investments are expected to reach 12 billion dollars”.

In this sense, the International Development Bank (IDB) in association with the Organization of American States (OAS) pointed out which countries in Latin America and the Caribbean should invest more in cybersecurity, especially because, of the 32 countries investigated, 16 of them do not have the response capacity or adequate coordination in the face of invasions. Only four countries reached the intermediate level of development in this aspect.

Likewise, a study conducted by the University of Oxford, in collaboration with the government of Es-

108

tonia (a leading country in digitization), found that, at the beginning of 2020, only 12 countries in the region had approved a national cybersecurity strategy.

On the other hand, Nayia Barmpaliou, head of Public Policy and Initiatives Center for Cybersecurity at the World Economic Forum, argued: “In a span of three months we experienced an acceleration of the digital transformation that had been anticipated to occur in three years. Over time, our transition to the ‘digital everything’ era has profoundly reshaped our professional and personal lives. Even in the most disruptive pandemic environment, the Internet and global digital infrastructure have enabled the provision of essential services, allowed businesses to continue to operate, and sustained our individual social contacts”.

Market evolution 30 25 20 15 10 5 0

2019

2020

2021

2022

2023

2024

2025

Cybersecurity value in Latin America from 2019 to 2025 in trillions of dollars Source: Statista.

Regarding the state of the cybersecurity market in Latin America, it presented an evolution in 2020 of around 7% compared to 2019. Figures that are estimated to continue growing over the next few years to the same extent that digitization deepens in Latin American society.

In view of this, it is expected that by 2025, the cybersecurity market will have grown more than 51% compared to 2019 in Latin America, reaching 26 trillion dollars.

According to Belisario Contreras, Cybersecurity Program Manager at the OAS, “the growth in the number of cyberattacks has

led to increased interest in cybersecurity in the region. To present a simple example, the search for the word cybersecurity online in one of the most popular search engines, 2 from March 2016 to June 2019, increased from 20 to 100. “ For the IDB and the OAS, “the great challenges of cybersecurity, like those of the Internet, are global in nature. Therefore, Latin American and Caribbean countries must continue to foster greater cooperation among themselves, involving all relevant actors, as well as establishing mechanisms for monitoring, analysis, and impact assessments related to cybersecurity, both nationally and regionally“.

TOP 100 INTEGRATORS • REPORT 2022

109

Main threats to the growth of cybersecurity

60% 50% 40% 30% 20% 10% 0%

Brasil

Mexico

Colombia

Peru

Main Latin American countries targeted by cyberattacks during 2020.

Source: Statista.

The rate of cyber-attacks per channel during the first quarter of 2020 between Latin America and the global average is much higher than the global average, both in cyber-attacks via desktop, via mobile browsers, and mobile apps. Statista revealed that the rate at which nearly 80% of cyber-attacks originating in the first quarter from Latin America were via mobile devices.

Latin America is the fourth-largest mobile market in the world, half of the population uses the Internet and in some countries, 100% of government purchases are already made by telephone. Some surveys indicate that during last year, 50% of financial institutions in Latin America suffered some kind of attack, in different modalities such as malware, phishing, password theft, among others.

110

According to the Statistical Portal, Brazil is by far the main target country for cybercriminals with almost 56% of cyberattacks. It is followed by Mexico (27%), Colombia (7%), and Peru (5%).

In relation to the above, IDC (the world’s leading market intelligence company) drew up a profile of cybercrime in Latin America, which shows that in recent years the number of digital attacks increased by 30% to 40% in the region. In Brazil, there were 27 million invasions, in Mexico 18 million, and in Colombia 5 million. Of the sample of businessmen interviewed, 4 out of 5 said that investment in securing their networks is a priority for the continuation of their business. The study predicts that investments in cybersecurity will increase by 8.6% in the acquisition of software and 4.5% in security hardware until 2020, increasing the digital security market.

Attacks by compromised computer systems DDoS attack frequency by month (H1 2021) Fact:DDoS attacks reached nearly 5.4 million in H1 2021 - an 11% increase compared to H1 2020.

In total, 2.8 million DDoS attacks utilized botnet networks.

1.1M 1M

972,000

0.9M

921,000

968,000 882,000

0.8M

842,000 759,000

0.7M 0.6M 0.5M 0.4M 0.3M 0.2M 0.1M 0 January

February

March

April

May

June

Source: NETSCOUT

Latin companies stated that this issue is one of the top three threats to their business. Forty percent of them say that one day they will be the target of attacks, 52% admit they are not prepared for sophisticated attacks and 56% agree that there are no qualified (professionals in the market capable of helping to reduce the chances of invasions).

In contrast, according to data presented by the Atlas VPN team, cybercriminals launched nearly 5.4 million distributed denial-of-service (DDoS) attacks in the first half of 2021, an 11 % increase compared to the first half of 2020. More than half (2.8 million) of the attacks used compromised computer systems, or in other words botnets, as sources of attack traffic.

January, the first month of this year, saw the most significant number of DDoS attacks: 972,000. In February, attacks dropped by just over 5 % to 921,000 and increased again by 5 % in March to 968,000.

In April, DDoS attacks began to decline steadily. They fell by 9 % to 882,000 DDoS attacks in a month and decreased again in May by 5 % to 842,000 attacks. Finally, in June, DDoS attacks reached the lowest point in the first half of 2021, falling by 10 % to 759,000.

About 41,000 or about 1 % of DDoS attacks in H1 2021 were targeted at commercial VPNs. Attacks on commercial VPNs are particularly dangerous, as they can cause collateral damage affecting a wide range of entities.

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The official estimates against data fraud and cybercrime Against this backdrop, Nayia Barmpaliou, Head of Public Policy and Initiatives Center for Cybersecurity at the World Economic Forum, added: “Before the pandemic, cybersecurity breaches and data breaches were becoming major obstacles in the digital economy. Cybercriminals are quick to exploit new attack vectors and benefit from gaps in law enforcement cooperation across jurisdictions, given the inherently transnational nature of their malicious activities. In turn, the risk of cyber attacks on critical infrastructure and fraud or data theft has always been a priority for business leaders globally.”

According to the World Economic Forum’s Global Risks 2020 Report, 17 the risk of cyber attacks on critical infrastructure and fraud or data theft ranked

112

among the top 10 risks most likely to occur, while the recent “Risk Outlook” conducted by the World Economic Forum identified cyber attacks as the third biggest concern due to our current and sustained transition to digital work patterns.

Notably, cybercrime damages will reach US$6 trillion by 2021, which is equivalent to the gross domestic product (GDP) of the world’s third-largest economy.

In addition to the financial cost, cybercrime and cyberattacks undermine user confidence in the digital economy. Surveys indicate that of the global population with Internet access, less than 50% are confident that technology will improve their lives, demonstrating a growing and profound lack of trust regarding data privacy.

CYBERSECURITY OVERVIEW COUNTRY

BY COUNTRY

TOP 100 INTEGRATORS • REPORT 2022

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Mexico, Central America, and the Caribbean

Mexico Mexico is one of the countries in the world with the highest annual growth in terms of digitalization and Internet penetration. As a consequence of this increase in digitization in recent years, the level of cyber-attacks has also grown considerably, being the second country in Latin America with the most cybersecurity incidents in 2018.

Spending on cybersecurity is low compared to other countries but is expected to grow at an annual average of 4.83 % between 2020 and 2023. The percentage of Internet users in the country in 2019 was 70.1 %. The increase in Internet users in 2019 was 4.3 % compared to 2018 and 12.7 % compared to 2015. The average annual growth rate over the last 5 years has been 5.1 %.

With regard to e-commerce, whose fundamental pillar is payment security and user privacy, it has experienced considerable development in recent years, growing by 28.6 % in 2019 compared to the previous year, above the global average of 20.7 %.

According to a study by Willis Towers Watson, it is estimated that in 2018 83 % of Mexican companies were victims of some type of cyberattack at least once in the year, with losses averaging US$1.5 million, positioning Mexico among the 10 countries with the most cyberattacks. This same study states that only 30% of companies had a protection plan in place that year.

Expenditure growth forecasts 2020-2023 Mexico in millions of USD

Spending Annual growth

2019 944,82 5,51 %

2020 975,81 3,28 %

2021 1.023,62 4,90 %

2022 1.077,36 5,25 %

2023 1.140,82 5,89 %

CAGR 2020-2023 4,83 %

Worldwide in millions of USD

Spending Annual growth

2019 2020 2021 2022 2023 CAGR 2020-2023 120.877,16 125.736,42 133.657,81 141.994,60 151.312,94 4,83 % 7,28 % 4,02 % 6,30 % 6,20 % 5,89 %

Source: Economic and Commercial Office of the Embassy of Spain in Mexico City

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Costa Rica In Costa Rica, more than 201 million cyber-attack attempts were registered during 2020, out of a total of 41 billion in Latin America and the Caribbean according to figures from Fortinet. In addition, 77.6% of cyber-attacks that occur in the world are directed at companies, the remaining 22, 4% at individuals.

In 2020, Costa Rica’s services exports amounted to USD 6,832 million, of which 20 % corresponded to computer, information, and telecommunications services. Additionally, according to PROCOMER research, 23% of companies in the ICT sector related to 4.0 technologies are specialized in cybersecurity, which led to the creation in 2020 of Cybersec Costa Rica, the first cybersecurity cluster in the country and in Central America.

By 2021, the cumulative global cost of damage caused by cybercrime is estimated to reach 6 trillion dollars, being much more profitable than drug traffic-

Population

4.9

million

Area (km2)

king, according to a study by the Ponemon Institute.

Last year, 300 fraudulent websites were registered, 247 were related to the certified digital signature; 45 with financial entities and others with the Ministry of Finance, as well as health entities, according to a report by the Directorate of Digital Governance of the Ministry of Science, Technology, and Telecommunications (Micitt) and the Computer Security Incident Response Center (Csirt).

On the other hand, in the technological segment, communication services are the category that concentrates the largest expenditure by companies, and that in 2020 fell 1.4% as a result of the pandemic; however, it outlines a growth of 3.5% in 2021 to reach 1.4 trillion USD, the most significant absolute expansion. According to variation, it is spending on devices (+13.9%) and enterprise software (+3.2%) that will close in 2021 with the greatest dynamism.

51.1

thousand

GDP per capita ($)

17.9

thousand

22 % 53 %

45th National Cyber Security Index

64 %

115th Global Cyber Security Index

60th ICT Development Index

64 %

44th Networked Readiness Index

NCSI Fulfilment percentage 100 80 60 40 20 Policy

Threats

Educatión

Global

Digital

Essential

elD & TS

Personal

CIRC

Crisis

Police

Military

0

Source: Graph constructed based on data from the Cámara de Tecnología de Información y Comunicación.

TOP 100 INTEGRATORS • REPORT 2022

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El Salvador El Salvador currently does not have a national cybersecurity strategy, having a National Cybersecurity Policy is one of the objectives of the Digital Government Strategy 2018- 2022, “the result of a consultation process, where international experts, academia, government institutions, the private sector, and civil society organizations participated”.

In recent years, El Salvador has exchanged knowledge on topics such as the protection of critical infras-

D1

2016

2020

Cyber security policy and strategy 1-1

National Cyber Security Strategy -----------------------------

tructure and the improvement of cybersecurity, with Ecuador, Spain, Israel, and the Republic of Korea, among other countries.

In addition to the development of the Digital Government Strategy 2018-2022, El Salvador has taken some concrete steps to establish e-government, such as the launch of the project for the Integrated Administrative Management System and the National Open Data Policy.

D2

2-1

Private sector

Content

Users 2-2

Incident identification

1-3

Cyber security mindset -------------------------------------------Government

Organization

Incident response -----------------------------------------------------

2020

Cyber culture and security

Strategy development

1-2

2016

Trust and security on the internet ----------------------------

Organization

Trust and security on the internet of the user

Coordination Operation mode

User confidence in e-government services

Protection of critical infrastructure ID ----------------------

User confidence in e-commerce services

Identificación Organización Risk management and responses 1-4

Crisis management --------------------------------------------------Crisis management

Source: Inter-American Development Bank (IDB).

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2-3

User understanding of online information protection--

User understanding of the protection of personal information online

Guatemala In Guatemala, there are no specific regulations that address cybercrimes according to international standards.

However, in Decree number 17-73 of the Congress of the Republic, Penal Code, some computer crimes are typified such as the destruction of computer records (destroy, delete or disable information); alteration of programs, reproduction of instructions or computer programs, prohibited records (that affect the privacy of persons); manipulation of information (hide, alter or distort information); use of information (illicit access); destructive programs (records, programs or equipment); and malicious alteration of origin number.

D1

2016

2020

Cyber security policy and strategy 1-1

National Cyber Security Strategy -----------------------------

Thus, Check Point’s Threat Intelligence Report statistics detected a growth of around 65% in attacks during the last 6 months of 2020 in the country. This report counted 1,012 attacks on organizations on a weekly basis in June and by the end of November, there were already 1,673 attacks per week.

It is worth noting that as of 2018, according to several reports, Guatemala is the second most vulnerable country to internet attacks, documents show that cybercrime costs the world up to US$575 billion a year, of which US$90 thousand correspond to Latin America and the Caribbean.

D2

2-1

Private sector

Content

Users 2-2

Organization

User confidence in e-government services

Coordination Operation mode

Protection of critical infrastructure ID ---------------------

User confidence in e-commerce services

Identification Organization

Trust and security on the internet --------------------------Trust and security on the internet of the user

Incident identification

1-3

cyber security mindset --------------------------------------------Government

Organization

Incident response -----------------------------------------------------

2020

Cyber culture and security

Strategy development

1-2

2016

2-3

User understanding of online information protection--

Risk management and responses 1-4

Crisis management --------------------------------------------------Crisis management

User understanding of the protection of personal information online

Source: Inter-American Development Bank (IDB).

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Panama Considering only the months of October, November, and December, there were 194 million attempted attacks in the country. During this period, threats are known as phishing emails spread throughout Latin America with HTML attachments, attempting to redirect the web browser to malicious websites.

On the other hand, it is highlighted that Panama recorded about 767 million cyber-attack attempts in 2020. Only for the financial sector, one of the engines of the Panamanian economy, its increase amounted to 300 %. This category, along with telecommunications, education, and government, has been the most affected by ransomware.

D1

2016

2020

Cyber security policy and strategy 1-1

National Cyber Security Strategy ----------------------------

In all the systems analyzed, 32 % more security compromises were reported than in the previous year.

There was also a 25 % increase in the average number of vulnerabilities detected by this system.

46.5 % of the continuously hacked computers observed reported at least one vulnerability of critical severity. Computer Weekly reported that during 2020 the proportion of high and critical vulnerabilities submitted to the National Institute of Standards and Technology accounted for 57% of all cases.

D2

2-1

Private Sector

Content

Incident response Organization Coordination Operation mode 1-3

Protection of critical infrastructure ID ---------------------Identification

Source: Inter-American Development Bank (IDB).

118

Cyber security mindset --------------------------------------------Government

Organization

Incident response -----------------------------------------------------

2020

Cyber culture and security

Strategy development

1-2

2016

Users 2-2

Trust and security on the internet ---------------------------trust and security on the internet of the user User confidence in e-government services User confidence in e-commerce services

Dominican Republic More than 158 million cyber-attack attempts were registered in the Dominican Republic during 2020.

According to the statement issued by Fortinet, considering only the months of October, November, and December, there were 77 million attempted attacks in the country. During this period, threats are known as phishing emails spread throughout Latin Ameri-

ca with HTML file attachments, trying to redirect the web browser to malicious websites.

It is worth noting that, in 2020, at the height of the pandemic, cybercrime had a notable increase in the country. According to the National Cybersecurity Center, in 2020 there was a 471 % increase in cases, going from 69,856 cases registered in 2019 to 399,159 in 2020.

Panorama of cyber threats in the Dominican Republic Year 2020

DOMINICAN REPUBLIC

LATIN AMERICA

158 MILLION

41 BILLION

cyberattack attempts in 2020

cyberattack attempts in 2020

Fuente: Fortinet.

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Andean Region

Bolivia A Bolivian organization is being attacked on average 1,417 times per week in the last 6 months, compared to 528 attacks per organization worldwide.

Certainly, this data is of great relevance, as it reflects a significant amount of cyber threat activity in Bolivia, compared to the global average. In Bolivia, cy-

ber threats would be impacting 2.6 times more than what they impact on average in the world in general.

The main malware in Bolivia is XMRig, which affects 21% of Bolivian organizations. Eighty percent of malicious files in Bolivia were delivered via email, compared to 56 percent of malicious files delivered globally.

Attack Trend Last 30 days

Malware type trends % of affected organizations Banking Trojans

0.2 %

Botnet

7.2 %

Cryptominer

15.6 %

Mobile

2.2 %

Ransomware

0.0 %

Source: Computer Crime Observatory Bolivia.

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Colombia Cybersecurity figures as of June 2021 recorded more than 23,000 criminal news, 3 0% more than the same period in 2020 which presented 18,290 cases according to the Attorney General’s Office.

phishing modality, where messages addressed to personal or corporate users’ email inboxes with infected links are used, continues to be the most used strategy to defraud or steal information.

The study also presents in detail the most reported modalities of cyber-attacks, as is the case of the violation of personal data which is in the first place, presenting an increase of 108% with 6,649 complaints filed compared to the 3,191 recorded in 2020.

On the other hand, abusive access to computer systems increased with a variation of 806 cases corresponding to a 26% increase compared to the figures reported during 2020, which reached 3,059 cases, and those registered during 2021, which already show 3,865 complaints filed.

Against this, the mass sending of emails through the

The cybersecurity landscape in Colombia In 2019 there were more than 28,827 cyberattacks

Of those, 17,531 cases were reported to the authorities During the pandemic About 204 web pages with malicious content have been reported.

Which are the most frequent?

Theft through computer means

Identity Theft

220 alerts generated from social networks.

3 Colombia

Colombia is among the Latin American countries with the highest number of ransomware attacks, with 252

2 Argentina

1 Brazil

Source: Electronic Commerce Observatory Colombia.

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Ecuador In 2020, cybersecurity was not on the sidelines of the health crisis. As mentioned by ESET, a leading company in proactive threat detection, in its report “Trends 2021 in cybersecurity”, the acceleration in the use of technology for activities such as teleworking, as well as changes in the habits of users, had an impact on the actions of cybercriminals during this year.

In Ecuador, in 2021, 532 cases of fraudulent appropriation of data by electronic means were registered; almost 370 more than those that occurred in 2020, according to information from the National Cybercrime Unit of the National Police.

D1

2016

2020

Cyber security policy and strategy 1-1

National Cyber Security Strategy ----------------------------

Dmitry Bestuzhev, director of Kaspersky’s analysis and research team for Latin America, points out that it is necessary for companies and the State to invest more resources to improve their protection strategies and avoid massive hacks.

For him, although investment in security equipment and systems can be high, it also helps to protect larger damages with data theft. Martina López, ESET’s security analyst for Latin America, considers that one of the most common failures in databases is the configuration and that this could cause computer thieves to gain easy access to them.

D2

2-1

Private sector

Content

Users 2-2

Incident identification

1-3

Cyber security mindset -------------------------------------------Government

Organization

Incident response -----------------------------------------------------

2020

Cyber culture and security

Strategy development

1-2

2016

Trust and security on the internet ----------------------------

Organization

Trust and security on the internet of the user

Coordination Operation mode

User confidence in e-government services

Protection of critical infrastructure ID ----------------------

User confidence in e-commerce services

Identification Organization Risk management and responses 1-4

Crisis management ---------------------------------------------------Crisis management

Source: Inter-American Development Bank (IDB).

122

2-3

User understanding of online information protection --

User understanding of the protection of personal information online

Peru More than 50 % of the incidents reported have been of the Ransomware type, in many cases taking advantage of vulnerabilities through social engineering using e-mail with attachments or links within the mail.

The vast majority of Ransomware is massive, targeting both private companies and government institutions. However, targeted ransomware attacks have also occurred.

According to data from ESET, a computer security company, between September 2018 and September 2019, Peru concentrated 14% of the spyware cases detected in Latin America, positioning it as the third

country with the most attacks of this type. The latest Microsoft Security Intelligence Report recorded, in 2018, an average monthly rate of malware incidents of between 8 % and 12 %.

On the other hand, Fabio Azzolini, a senior security analyst at Kaspersky, explained that the country is the only one harmed in the region by worm-type attacks, which spread through infected USBs or from suspicious links on social networks.

The research reveals that 29% of Peruvian users use an operating system that will no longer have updates.

How are we compared to other countries in the region and the world?

100% 90%

86%

80% 70%

81% 81% 67%

67%

60%

59% 59%

50%

59%

59%

60%

70%

51%

40% 36%

32% 27%

You say that the relationship between cybersecurity and business lines is non-existent or neutral.

Describe the cybersecurity area as an enabler of innovation.

It does not have a cybersecurity manager who reports to the directory.

Says crisis prevention and compliance remain the main drivers for increasing the cybersecurity budget.

You have experienced a significant incident carried out by employees in the last 12 months.

16% 16% Peru

Global

Peru

Latam

Global

Peru

Latam

Global

Peru

Latam

14%

Latam

5% Global

Peru

Latam

Global

Peru

Latam

Global

Includes the cybersecurity area from the planning stage in its new business initiatives.

4%

Peru

7%

10%

Latam

20%

Global

30%

The cybersecurity budget is used for digital transformation programs.

Source: Global Information Security Survey 2019-2020 TOP 100 INTEGRATORS • REPORT 2022

123

Cono Sur

Argentina In Argentina, more than 900 million cyber-attack attempts were registered during 2020.

allow groups of compromised devices to work together to reach a 5G speeds.

Considering only the months of October, November, and December, there were 550 million attempted attacks in the country. During this period, threats are known as phishing emails spread across Latin America with HTML file attachments, attempting to redirect the web browser to malicious websites.

Web-based malware has become the most common vehicle for distributing infected files, often becoming the gateway for ransomware.

Similarly, less than 25% of companies have incorporated active defense of their control systems and assets. Fifty-eight percent of respondents identified lack of SC security expertise as the top obstacle, followed by lack of staff (48%), requirements related to operational uptime (44%), lack of financial resources (37%), and insufficient leadership support (35%).

By 2021, Fortinet identifies another significant trend with the emergence of new smart edges, i.e., networks that adapt and expand based on user needs, which will not only create different attack vectors but

Forty-seven percent of mature SC security programs use managed security services, compared to 6 percent of less mature programs, and 53 percent of mature SC security programs perform comprehensive security assessments more frequently than less mature programs (36 percent).

Cybercrime impact Industry data

3%

101

24-48

$3.9M

$8T

of people click on phishing campaigns

days is the average time that elapses between the intrusion and the detection of a security incident.

hours can take an attacker to take complete control of the network.

million is the global average cost of security attacks.

is the cost that cybercrime will have by 2022

Source: Microsoft Argentina.

124

Chile More than 2.3 billion cyberattack attempts were recorded in Chile during 2020, out of a total of 41 billion in Latin America and the Caribbean. In the months of October, November, and December alone there were 1.4 billion attempted attacks in the country; a period in which the most used threats were phishing emails, which spread throughout Latin America with HTML files, which redirect to malicious websites, being the most common method for distributing infected files.

The year’s consolidator also shows cyberattack data obtained through Fortinet’s threat prevention service (FortiGuard Labs), stating that more than 100 billion threat events are being processed per day. “One of the capabilities of criminals was to invest time and

resources in much more lucrative attacks,” says Pia Salas, country manager of Fortinet Chile.

Other conclusions of the report place an avalanche of ransomware or data hijacking, indicating a seven-fold increase in the overall activity of this type of attack compared to the first half of 2020.

Pía Salas believes that this figure is due to the investment by criminals in new capabilities, in order to achieve much more lucrative attacks through the evolution of Ransomware-as-a-Service (RaaS), a focus on large ransoms for large targets, and the threat of disclosing stolen data if demands are not met.

Impact of Covid-19 on cybercrime in Chile

Online work and education increase cybersecurity threats.

Cyberattack attempts in the first half of 2020

Brute force attack attempts on the rise

Latin America and the Caribbean

Brute force attacks are among the most frequent intrusion attacks in the second quarter of the year.

15 billion Chile

525 million Malicious Phishing Campaigns

SSH.Connection.Brute.Force Threw 200 logins in 10 seconds

The daily campaigns of Phishing continue, a social engineering scam that redirects to malicious links and sites, many of them under pretexts related to Covid-19.

SMB.Login.Brute.Force It launched 500 logins in a minute to computers with Windows operating systems.

No. de campañas: APRIL MAY

JUNE

4.250 3.590

2.841

Source: Technology & Business Trends (TIC Trend).

TOP 100 INTEGRATORS • REPORT 2022

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Paraguay In Paraguay, 2,101 cyber accidents were reported in 2020, according to the report State of Cybersecurity in Paraguay Year 2020, presented by the Ministry of Information and Communication Technologies (Mintic).

Paraguay’s Cyber Incident Response Center (CERTPY) attended 1,358 of them and conducted 6,598 investigations during the past year.

The main incidents reported were: compromised systems or equipment (755), malware (726), malicious spam (531), and theft of personal information or phishing (136).

The month of the year with the most reported incidents was July, with 217, followed by November, with 189, while the day of the week with the most

reports was Tuesday, with 400, followed by Monday, with 384.

Mitic presented this report jointly with CERT-PY in order to strengthen the exchange of information, improve cybersecurity and reinforce the level of awareness regarding digital security threats in the region.

Both agencies highlighted as recurring incidents the theft of WhatsApp accounts and electronic wallets through social engineering mechanisms. This year, data was included on the investment made by the Paraguayan government in cybersecurity, as well as the number of public personnel working in the area of Information and Communication Technologies (ICT), which amounts to 818 officials in the South American country.

Compromised equipment/system

755

Malicious software (Malware)

726

Spam - malicious (Spam/Scam)

531

Phishing

136

Scan / brute force

35

Bad configuration / vulnerability

11

Ransomware

7

Improper access to accounts or data

6

Undefined

2

Denial of services (DoS/DDoS)

2 0

Fuente: DPL News.

126

100

200

300

400

500

600

700

800

TOP 100 INTEGRATORS • REPORT 2022

127

CHAPTER 8 128

GROWTH IN THE ELECTRONIC SECURITY SYSTEMS MARKET

Currently, VDS projects are having an impact in different countries. Initially, due to the technological innovation adopted for the corporate and residential sectors. It is then, that it becomes relevant to address the growth data, the main threats, and how it takes force in the corporate economy and in the investment of the integrators industry.

Therefore, this chapter analyzes the business opportunities in the short and long term, what are the key global trends in the industry, exposes the competitive advantages, and in turn, analyzes how the migration of face-to-face surveillance services indicating major changes in sales decisions, purchase, and development of systems.

The Kaspersky study entitled “The investment adjustment: how to align IT budgets with changing security priorities”, shows that “70% of respondents say that the devices used in their business have security software installed and of these, 96% are protected with paid licenses, figures that are indicators of the importance that micro, small and medium enterprises give to cybersecurity “.

Faced with this, it is important to note that most companies have increased the budget for electronic security equipment, this then has grown from 114 thousand dollars in 2019 to 250 thousand dollars in 2020. This increase could be related to the fact that 25% of the MSMEs consulted in the Kaspersky study indicated that they decided to increase their cybersecurity budgets after having suffered some incident, and another 22% commented that they did so after learning that other companies were victims of security breaches.

Around 44% of companies in Latin America increased their investments in cybersecurity in 2021 and almost 40% are allocating more resources to cloud services, according to a security survey published by The Premier Global Market Intelligence (IDC).

According to IDC, teleworking and remote learning models will mean greater adoption of softwaredefined secure access solutions. “Some 51% of organizations in Brazil and Latin America believe that ensuring trusted digital services and experiences will be of critically greater importance over the next five years,” said IDC Brazil business research and consulting manager Luciano Ramos.

“The cloud continues to be the great enabler of business transformations and it is expected that, by 2023, 35% of security solutions in Brazil will already be cloud-enabled,” Ramos said.

In addition, according to the research firm, as enterprises increase their adoption of cloud services to support their digitization initiatives, they will need to consider different models of security solutions.

These include the use of advanced cloud security systems, more robust systems to protect data and workloads, and, in particular, the adoption of intelligence embedded in cyber solutions to anticipate risks.

IDC notes that 37% of Latin American companies that consume security services plan to invest specifically in threat intelligence in the coming years.

The concept refers to risk mapping and the information an organization relies on to assess threats that target or could target its assets.

TOP 100 INTEGRATORS • REPORT 2022

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Cyber attacks on companies in Latin America and the United States.

How did the attacker get in?

39%

37%

Hacking

11%

unauthorized access

6%

employee error / negligence

accidental online exposure

4%

physical theft

2%

2%

data in motion

internal theft

The sectors impacted

Number of data

Exposed data (In millions of records)

644 525

39

19 Business

Health

Source: 2020 Compromise flashcard

130

1.473

113

108 101 2

Education

Finance

83

4

Government

165

Total

Growth in revenue and demand for security equipment The security systems market fell 0.4% in 2020 after six years of uninterrupted growth. It is then, that the niche of security systems, including installation, maintenance, and connection to central anti-intrusion systems, CCTV, access control, anti-theft and fire systems, ended the 2020 financial year with a value of 2,375 million euros, after six years of uninterrupted growth, as reported by the DBK Sector Observatory of Informa, a subsidiary of CESCE. Compared to 2019, the global market for professional video surveillance equipment expanded by 9.3 percent, driven by strong demand for security, public safety, and business intelligence enhancements.

Global market revenue by this time reached $19.9 billion in 2019, up from $18.2 billion in 2018, according

to IHS Markit’s Video Surveillance Intelligence service.

The strong performance that year began with a 9.3% growth in 2017 and was followed by an 8.7% expansion in 2018. This three-year growth followed weaker growth of 3.9 % in 2016 and 1.9 % in 2015.

The surveillance market also shifted toward the use of network cameras. A total of 70 percent of all security cameras shipped in 2018 were network cameras.

At the same time, global sales of HD CCTV cameras, also known as HD analog cameras, fell in 2018.

However for 2020 and 2021 internationally, there was talk that the decrease was directly linked to the negative impact on demand brought on by the coronavirus crisis, especially in the airport, commercial, and entertainment arenas.

Global Revenue Forecasts for the Professional Video Surveillance Equipment Market (Revenue in Millions of Dollars)

25,000

20,000

15,000

10,000

5,000

0 2015

2016

2017

2018

2019

Source: IHS Markit TOP 100 INTEGRATORS • REPORT 2022

131

The domestic alarm business, the new security protocols to combat the pandemic, and the dynamism of demand associated with the logistics sector thanks to the expansion of online commerce have prevented a further decline in this market, with a more favorable performance compared to other service sectors.

As for what awaits the industry in the field of economic recovery and development, it is also given by the evolution of the systems segment with respect to other areas of private security, which is explained by

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the trend of replacing face-to-face surveillance services with electronic security systems and technological development, which has allowed the marketing of equipment with increasingly advanced features.

Thus, the Observatory foresees that companies in the sector will have to manage in the short term in a scenario marked by the economic consequences of the coronavirus health crisis. “The growing need for companies and public spaces to install security equipment to protect against Covid and the boom in e-commerce represent opportunities for business growth.

Revenues in the video surveillance market According to Omdia’s latest video surveillance and analytics intelligence database, global video surveillance market revenues are forecast to reach $24 billion by the end of 2021.

Omdia forecasts total video surveillance market revenue to grow to US$31.9 billion by 2025 with a total CAGR of 7.1 % between 2020-2025. The market size of the thermal body temperature solutions market has grown rapidly to US$1.3 billion globally by 2020.

Driven by Covid 19 precautions, this technology has been adopted by several regions, particularly China, East Asia, India, and the Middle East. Without the growth of body temperature thermal solutions, the global video surveillance equipment market decli-

ned by 3.8% globally by 2020.

However, the market for thermal body temperature solutions is forecast to decline rapidly by 2021 to only US$137 million, a decrease of 89.8%, which will ultimately limit the overall growth of the video surveillance market.

It is worth noting that due to the shortages and price increases in the industry, there has been a growth in demand for specialized components (Tablets, Laptops), which has led manufacturers to focus their production lines on these. Many highdemand components have increased prices up to 1000 %, which has caused a device to increase its cost from 5 % to 45 %.

Forcast of the Physical Security Market 2020 to 2025 The impact of Covid-19 Scenario 1 Return to normal Q1 2021 / Mass adopted vaccine Q1 2022 Scenario 2 Return to normal Q1 2022 / Mass adopted vaccine Q3 2022

70 60 50 40 30

34.3 34.3

20

32.4

33.7

31.7

32.6

2020

2021

37.1 35.2

40.4

44

47.5

37.7

39.9

42.3

2023

2024

2025

10 0 2019

2022

Source: IHS Markit TOP 100 INTEGRATORS • REPORT 2022

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Overview of electronic security in the corporate and residential markets Regarding the global market for fire alarm and detection systems, the study conducted by Grand View Research, Inc. suggests that the market is gaining importance, even more so in the midst of the Covid-19 pandemic. The demand for residential fire safety consequently showed a significant increase, which may be due to the long working hours carried out from home.

Related to the above, global demand exceeded $40 billion in 2020 and will continue to grow over the next seven years, according to Grand View analysts.

This, then, refers to the developments followed by cost-effective products and service and maintenance pole installations, which, according to the study, will contribute greatly to boosting sales.

Suppliers aim to launch new products and take advantage of opportunities in emerging markets by developing a local sales network and closing new business deals. In addition to new equipment sales, replacement market demand is also increasing.

Aging infrastructure with obsolete fire safety devices will pave the way for new business opportunities over the next seven years.

Notably, the smart home security market includes the sale of motion sensors, door locks, security cameras, surveillance services connected to a broader smart home, water or smoke sensors, and digitally connected devices for the prevention of burglary or other security issues.

That being the case, global smart home security market revenues had been growing at a steady pace, rising from US$5.7 billion in 2017 to nearly US$10 billion in 2019, Statista’s survey revealed. Last year, this figure rose to US %11.9 billion.

It is also evident that global revenues from smart home security systems are expected to grow by US$3.2 billion in 2021. However, the following years are projected with revenues increasing by another US$6.1 billion by 2023. By 2025, the entire market is projected to reach a value of US$27.3 billion.

The Statista survey also confirmed that security cameras are “the most purchased product in the security segment, with a product penetration rate of 2.6% in 2021. By 2023, this is expected to increase

Smart Home Security Market Gains 2017 to 2025 (Values in US Millions) 30

27.3 24.2

15 21.2 20

15.2 15.1

15 9.9

10 5 0

5.7

2017

11.9

7.6

2018

2019

2020

Source: Statista. Forecast adjusted for the impact of Covid-19

134

2021

2022

2023

2024

2025

to 4.3%. Smart locks ranked second with a penetration rate of 1.9 % this year. They are followed by smoke detectors with 1.6 %, respectively.”

In the case of the corporate sector, the rise of telecommuting during isolation has led to an increase in cybercrime among many other digital challenges.

This is why the transition to remote work had to rethink IT security.

Therefore, the corporate sector is faced with di-

fferent challenges: obsolescence of hardware evolution, maintaining investment costs, maintaining competitiveness in a new environment, accessing technology at all times and securely.

According to PwC’s Digital Trust Insights global survey, the demand for cybersecurity professionals has skyrocketed, so it is estimated that, globally, by 2022 there will be up to 1.8 million unfilled positions due to the shortage of professionals specialized in the field.

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Index of references Sources cited : Inter-American Development Bank (IDB), “Disclosure of Expectations in Latin America,” June 2020.

Inter-American Development Bank (IDB), “Latin America overcomes commercial impact of pandemic,” Press release, June 3, 2021.

Inter-American Development Bank (IDB) , “Education in times of the coronavirus”, May 2021.

Inter-American Development Bank (IDB), “Cybersecurity: Risks, Progress and the Way Forward in Latin America,” 2020.

World Bank (WB), “Global Economic Prospects: Latin America and the Caribbean,” January 2021.

Bnamericas, “Latin American companies increase investment in security and cloud services”, Press release, October 8, 2021.

Bolivia Emprende, “Reporte Ciberseguridad 2020: riesgos, avances y el camino a seguir en América Latina y el Caribe”, February 24, 2021.

Colombian Chamber of IT and Telecommunications, “SAFE program launches its new study: Assessment, challenges and threats to cybersecurity,” Press release, July 13, 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “The effects of COVID-19 on international trade and logistics,” August 6, 2020.

Economic Commission for Latin America and the Caribbean (ECLAC), “América Latina y el Caribe ante la pandemia del COVID-19 Efectos económicos y sociales,” April 3, 2020.

Economic Commission for Latin America and the Caribbean (ECLAC), “Preliminary Overview of the Economies of Latin America and the Caribbean, 2020” (LC/PUB.2020/17-P/Rev.1), Santiago, 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), Preliminary Overview of the Economies of Central America and the Dominican Republic in 2020 and Outlook for 2021: February 2021 (LC/ MEX/TS.2021/2), Mexico City, 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “Sectores y empresas frente al COVID-19: emergencia y reactivación”, July 2, 2020.

Economic Commission for Latin America and the Caribbean (ECLAC), R. Sánchez and F. Weikert, “Logística internacional pospandemia: análisis de las industrias aérea y de transporte marítimo de contenedores”, Comercio Internacional series, No. 162 (LC/TS.2020/190), Santiago.

Economic Commission for Latin America and the Caribbean (ECLAC), “Las oportunidades de la digitalización en América Latina frente al COVID-19”, 2020.

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Economic Commission for Latin America and the Caribbean (ECLAC), “Universalizar el acceso a las tecnologías digitales para enfrentar el COVID-19”, August 2020.

Cuadernos de Seguridad, “Security systems market records slight decline in 2020 to €2.375 billion”, Press release, May 15, 2021.

Departamento Administrativo Nacional de Estadística (DANE), “En el primer trimestre del 2021pr el Producto Interno Bruto de Colombia crece 1,1%” , Press release, May 14, 2021.

Digital Policy Law, “Main cyber-attacks for 2021 in Costa Rica,” Press release, March 24, 2020.

Digital Policy Law, “Paraguay registered more than 2 thousand cyber incidents in 2020,” Press release, April 6, 2021.

Diario Libre, “Más de 158 millones de intentos de ciberataques afectaron a República Dominicana en 2020,” Press release, February 26, 2021.

EKA, “Principales ciberataques para el 2021 en Costa Rica”, Press release, 2021.

El Economista, “Al cierre del 2020 deuda global sumará 277 bdd: IIF”, Press release, November 19, 2020.

El Capital Financiero, “Panamá registró más de 960 millones de intentos de ciberataques en 2020”, Press release, February 26, 2021.

El Comercio, “El país necesita políticas integrales para reforzar la ciberseguridad”, Press release, 04 August 2021.

EuropaPress, “Security systems market fell 0.4% in 2020 after six years of uninterrupted growth,” Press release, 06 May 2021.

ICEX, “Cybersecurity in Mexico.” International Monetary Fund (IMF), “WORLD ECONOMIC OUTLOOK: MANAGING DIVERGING RECOVERIES,” April 2021.

Forbes, “Ciberseguridad en Latam: un mercado millonario, pero insuficiente”.

Fortinet, “Latin America suffered more than 41 billion cyberattack attempts in 2020,” Press release, February 24, 2021. kaspersky, “Latin American MSMEs advance in cybersecurity,” Press release, June 24, 2021.

La Tercera, “Cyberattacks in Chile: there were 2.3 billion hacking attempts in 2020,” Press release, March 10, 2021.

Mavica, “Cybersecurity in the era of hyperconnectivity and pandemics”. Ministry of the Interior Guatemala, “Estrategia de Seguridad Cibernética”.

Organization for Economic Co-operation and Development (OECD), “Tax Statistics in Latin America and the Caribbean 2021”, OECD Publishing, Paris, 2021.

Organization for Economic Co-operation and Development (OECD), “Jobs must be at the heart of recovery TOP 100 INTEGRATORS • REPORT 2022

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to avoid serious fallout in economy and society, says OECD,” Press Release, July 7, 2021.

World Trade Organization (WTO), “Trade plummets as COVID-19 pandemic disrupts global economy,” Press release, April 8, 2020.

World Trade Organization (WTO), “Trade shows signs of reviving after COVID-19 effects, but recovery remains uncertain,” Press release, October 6, 2020.

United Nations, “Policy Report: Education during COVID-19 and beyond,” August 2020.

Portfolio, “Capital flows continue to return to the region,” Press release, November 5, 2020.

Procomer, “GASTO MUNDIAL GASTO EN SEGURIDAD DE LA INFORMACIÓN SUPERARÁ LOS USD 150 MIL MILLONES EN 2021”, May 31, 2021.

Semana, “Pandemic accelerated digitalization in Latin America in three years”, July 28, 2020.

Summa, “Main cyberattacks for 2021 in Costa Rica”, Press release, March 23, 2021.

TecnoSeguro, “Global video surveillance equipment market reaches its third year of sustained growth,” Press release, 2019.

The Economy Journal, “The business of cybersecurity in Latin America.”

Security Sales, “The potential impact of the COVID-19 coronavirus on security,” March 31, 2020.

Security Sales, “Study on the commercial security systems market,” February 23, 2021.

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Databases: International Trade Centre (ITC). With information from UN Comtrade (United Nations Trade Statistics Database) and official sources: • El Salvador: Central Reserve Bank.

• Guatemala: Central Bank of Guatemala.

• Paraguay: General Directorate of Customs.

• Rep. Dominicana: UN Comtrade.

Descartes Datamyne. With information from official sources and partner countries: • Argentina: General Directorate of Customs.

• Brazil: Latin American Integration Association (Aladi).

• Chile: National Customs Service.

• Colombia: National Tax and Customs Directorate (Dian).

• Costa Rica: National Customs Service.

• Ecuador: National Customs Service.

• Honduras: General Directorate of Customs Franchise Control.

• Mexico: National Institute of Statistics and Geography of Mexico (Inegi).

• Panama: National Customs Authority.

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• Peru: National Superintendence of Customs and Tax Administration (Sunat).

• Uruguay: General Directorate of Customs.

Latin American Federation of Banks (Felaban), Exchange Rate Indicators (with respect to the U.S. dollar), official website (http://indicadores.felaban.net), data as of October 2021.

Armonized tariff classification codes (HS-code) analyzed*: HS-Code** Description 85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers; television image and sound recorders and reproducers, parts and accessories of the foregoing articles.

8521 Video recording or reproducing apparatus.

8517.69 Aparatos de comunicación (excepto teléfonos o estaciones base); máquinas para la transmisión o recepción de voz, imágenes u otros datos (incluidas redes cableadas / inalámbricas), n.c.o.p. en el ítem no. 8517.6.

8521.90 Video recording or reproducing apparatus; other than the magnetic tape type.

8523 Discs, tapes, solid-state non-volatile storage devices, smart cards, and other media for the recording of sound or other phenomena, recorded or unrecorded, including matrices and masters for the production of discs.

8523.21 Magnetic media; magnetic stripe cards.

8523.52

Semiconductor media; Smart cards.

8525

8525.80

Radio or television broadcast transmission apparatus, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video cameras.

Television cameras, digital cameras, and video cameras.

8531

Television cameras, digital cameras, and video cameras.

8531.10

Signaling apparatus; Electrical or visual sound (for example, bells, sirens, indicator panels, burglar or fire alarms), excluding those of heading No. 8512 or 8530.

9027 Instruments and apparatus; for physical or chemical analysis (e.g., polarimeters, spectrometers), for measuring or checking viscosity, porosity, etc., for measuring quantities of heat, sound, or light.

9027.10 Instruments and apparatus; apparatus for analyzing gases or fumes, for physical or chemical analysis. *For the import tables by the company for Chapter 1 and the import charts for Chapter 6, only the tariff classification codes of products related to electronic security systems (CCTV cameras, recorders, access control cards, alarms, and fire detection equipment) were taken for transactions carried out up to October 31, 2021. ** Technical Data Sheet “TOP BRANDS IN LATIN AMERICA” Survey Data collection dates: Until October 31, 2021.

Data collection technique: Online survey on the Encuestadatos.com platform.

Method: Multiple choice questions.

Subjects covered: Selection of one or more of the VDS equipment brands most commonly used by integrators.

Target group: The companies of the Top 100 Latin American Integrators 2021.

Survey developed by Latin Press, Inc. TOP 100 INTEGRATORS • REPORT 2022

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