LATAM COMPETITION & CD NETWORKOVERVIEW 2015

Paula A. MorroneLegally Privileged and Confidential for Internal Use Only

CONTENTS

1. THE NETWORK

o Network Members

o Local Teams

o Supportive Teams

o External Panel Resources

2. TRENDING TOPICS & KEY DEVELOPMENTS

o Brazil

o South Cone

o Middle Americas

o Mexico

3. CURRENT STATE OF PLAY

o Ongoing Cases

4. ROADMAP STATUS 2014/2015

o Risk Assessment

o Risk Mitigation & Training

o Effective Business Partnering for CD

o External Engagement

5. FOCUS AREAS 2015

o Key Points

o My 3+1

o My WP

LATAM CD & COMPETITION NETWORK

CHAIRMartina Maier

ES&SC CATEGORY

Catherine Stromdal

e

EUROPE

Martina

Maier

NORTH AMERIC

A

Ozer Courtney

LATIN AMERIC

A

Paula Morro

ne

NAMET and RUB

Julia Volko

va

NORTH ASIA

SOUTH ASIA

Amit Bhasi

n

SEAA

Mario-Abdi Amrill

ah

AFRICA

Silvia Zarpellon

A. Hernandez – MACecilia Neira – SoCoElias de Faría Lima– BrazilJuan Carlos Cruz - Mexico

GLOBAL COMPETITIONNETWORK

TRENDING TOPICS& KEY DEVELOPMENTS

MEXICO & CARIBEC. POLICY FOCUSED ON TELECOMS•2014 New Competition LawMIDDLE AMERICASNEED OF PROFESIONALIZATION• Colombia: Procedural Concerns on SIC broad power of inspection•Colombia: Evolving Down Raid Practice increasing IT focus.• Venezuela: New Competition Law• Ecuador: New para Supermercados•Guatemala: 1st Competition Law for 2014SOUTH CONEPOLITICAL AND ECONOMIC TURMOIL• Chile: New FNE Members/SC members• Chile: New Vertical Restrictions Guidelines• Argentina Trending Topic Pricing•Paraguay: 1st Competition Law

BRAZIL FOCUSED ON CARTELS AND MERGERS• Record Setting Fines• Increased Criminalisation of cartel or bid rigging offense• Cartel Inforcement Developments• Associative Agreements New Regulation• Activos down raid•Increasing International Cooperation•Nomination New Commissioners•Merger Control System Developments

ANTITRUST ACTIVITY IN LATAMCONTINUES TO TREND UPWARD• Strong Government

interventionism• Lack of harmonization and

standards• Growing Enforcement • Focus not only in cartel also in

TTs• Spill over effect from ongoing

cases • Emerging subject for some

regulators• Never underestimate merger

time frames• A more traditional Market Share

based approach that effect based one

CURRENT STATE OF PLAY

• Critical Impact – High Likelihood (+€10M +

Reputational Risks)• Emerging subject for Most UL Key staff

Level of activity

Country Category Legal issue / allegations Current/Next Step

Open cases

BrazilArgentina

Ice CreamDetergents

Exclusionary trade practicesExclusionary trade practices

Economic Report/Meeting at CADEInvestigation Stage recently opened/Economic Report

Pending inquiries

Argentina Bolivia Brazil Chile Colombia Uruguay Venezuela

FMCGFMCGFMCGFMCGHPCFoodsFMCG

Market InvestigationMarket investigationMarket investigationCollusion between supermarketsRoute to market and trade termsMarket investigationMarket Investigation

No newsCorporate Governance sideNo news/InactiveWe are not part to the caseDue Diligence Reports ongoingDue Diligence Reports ongoingNo news

Closed Cases

Chile Multicategory

Exclusionary trade Practices – Settled – Implementation Stage

Negotiation with UCC and FNE on Implementation of New TTs

ROADMAP STATUS 2014/2015RISK ASSESSMENT• Deep Dives Profile 2013/14• CD TTRA Annual Exercise – Legal Review• OOH – IC  Annual Check Mexico, Brazil and Ecuador: Deadline for Questionaires End of February

EFFECTIVE BUSINESS PARTNERING FOR CD/ SC /MKT• LATAM Portal 2014 Done!• TTs Guidelines LATAM NTW Launch 2015 Done! • Reinforced Network 2015 Done!• M&A Projects (AC/BOW) • Joint Buying Initiatives • Open Book Pricing Initiatives with Strategic Suppliers in Argentina

RISK MITIGATION & TRAINING• Roll out Competition Manual 2014 Done!• Roll Out of New Global Competition Law Compliance Program 2014 Done!• In person executive updates and trainings

2014 Done! 2015 Calendar in process• Special Training Modules 2015 Calendar in process• WOM /TAs Mandatory Trainings 2014Done!• Monthly Calls• Manage and report of Ongoing Cases

EXTERNAL ENGAGEMENT

• Advocacy• TA Governance Plan Mapping Done 2014!• USLP Initiatives for Brazil, Argentina, Colombia and Chile (very preliminary steps) • Panel Firm Mapping and Recommendations 2014 Done!

LATAM COMPETITIONFOCUS AREAS 2015

1. Issues trend! Assess risks with Legal -OOH IC, USLP, Detergents and HPC2. Make TTS reviews a key priority – LATAM TTS REVIEW 2015 Some markets need further attention3. Champion compliance at all times• Know, preach and practice the basics• Work with Legal to build robust business models4. Support CD Strategies – LATAM TT GUIDANCE CASCADE 2015• Check the quality of Agreements and record keeping• Good Understanding of Competition Law Areas of Risk• Use Legal for Guidance5. External Engagement

DO NOT create or sit on time bombs –if in doubt, speak to Legal!

PM 3+1 PM WP 2015