WDCN3

WDC Networks, registered as Livetech da Bahia Indústria e Comércio S.A. and traded on B3 under the ticker WDCN3, is a Brazilian company founded in 2004 by Vanderlei Rigatieri Junior and Francisco Sergio Day de Toledo. The company began with a focus on marketing wireless technology products and data network transmission solutions, initially serving niches such as radio-based internet. Over the years, it expanded its scope to broadband, electronic security, unified communications, data center infrastructure, professional audio and video, data security, the Internet of Things (IoT) and, later, photovoltaic solar energy. Its trajectory includes milestones such as entering the electronic security market in 2007, starting operations in FTTH (Fiber to the Home) telecommunications equipment in 2011, and inaugurating an industrial distribution center in Ilhéus, Bahia, in 2012, within the local IT Hub (Polo de Informática), with tax incentives and capacity to handle more than 2 million units per year.

Throughout its development, WDC adopted a business model based both on the distribution and assembly of telecommunications, IT and solar energy equipment, and on the provision of complete solutions in a leasing format, through the TaaS (Technology as a Service) model. This model, launched in 2013, structures leases for technology equipment with terms of up to 60 months and no purchase option at the end, turning traditional Capex investments into recurring operating expenses (Opex). The company maintains in-house production at industrial plants in Bahia, assembling telecom, networking, security, professional audio and video, automation and solar energy products under an SKD (Semi Knock Down) model. It combines imported inputs from suppliers in the United States, Europe, China and the domestic market with local assembly, seeking operational efficiency and tax benefits.

Until 2024, WDC Networks’ main activities were organized into three operating segments: Telecom, Enterprise and Solar, which also reflected its revenue breakdown. The Telecom segment concentrates fiber optic network (FTTx) solutions, including signal distribution hubs, optical modems, fiber cables, network passives and fusion splicers, as well as data and Wi-Fi networking products such as switches, routers and structured cabling. This division also covers data center infrastructure, offering racks, cable trays, UPS systems, fire systems and generators, often bundled as complete systems in an “as a service” model. The Enterprise segment comprises electronic security systems (IP cameras, access control, alarms and fire detection), cybersecurity solutions (firewalls, protection against attacks, internet access control), office and home automation (automation kits, Wi-Fi devices, electronic locks, lighting and air-conditioning controls), and professional audio and video products and LED panels aimed at out-of-home media, events, churches and corporate environments.

The Solar segment, launched in 2020, added the supply of photovoltaic power generators to the operation, with a plant in Extrema (MG) and a production unit in Salvador (BA) dedicated to assembling distributed generation kits for plants, solar farms and projects of different sizes, including commercial and residential applications. These kits use imported components, integrated locally, and came to complement solutions already sold to internet service providers, companies and integrators, enabling the incorporation of clean energy into telecommunications and IT infrastructure projects. In 2024, the company’s consolidated net revenue reached R$ 837.9 million, with the Telecom segment accounting for 57.1% of the total, Enterprise for 35.1% and Solar for 7.8%, highlighting the predominant weight of telecommunications and IT equipment and solutions in revenue generation. Between 2018 and 2024, the customer base grew from 3,560 to 6,408, reflecting increased penetration in markets such as regional internet service providers, systems integrators and large corporate clients.

WDC Networks’ commercial activities are aimed mainly at regional internet service providers (ISPs), telecommunications operators, security systems integrators, data centers, OOH media companies, building and home automation integrators, as well as corporate clients from various sectors, such as banks, condominiums, shopping malls and service companies. There is no dependence on a single buyer, since no individual customer accounted for more than 10% of net revenue in 2024. The company also develops specific solutions for “digital cities,” with projects for monitoring public roads for municipal governments, integrating surveillance cameras and control centers. In cybersecurity, the portfolio has been strengthened through acquisitions, seeking to meet growing demand arising from regulatory frameworks such as the General Data Protection Law (LGPD).

Geographically, WDC Networks has a strong national presence, serving customers in all Brazilian states through a decentralized logistics structure, with distribution centers in Ilhéus and Salvador (BA), São Paulo (SP) and Itajaí (SC), in addition to factories in Bahia. Internationally, the company operates a logistics hub in Panama and sales offices in Colombia and the United States, focused on serving Latin America. In 2024, 93.04% of net revenue was generated by customers based in Brazil, while 6.96% came from abroad, with a significant share of these foreign sales going to Brazilian customers operating outside the country. WDCN3 shares, admitted to B3’s Novo Mercado segment after the IPO held in 2021, reflect a corporate governance structure aligned with the practices required for listed companies with dispersed ownership.

WDC’s operations are subject to a set of technical and sectoral regulations, especially in the telecommunications, electrical equipment and data protection markets. Many of the products it sells require approval from the National Telecommunications Agency (Anatel), which demands compliance testing carried out by certification bodies and accredited laboratories. Certain items also require certification from Inmetro, which grants registration for use of the conformity seal after technical assessment by accredited organizations. The company is also subject to the provisions of the LGPD in handling personal data, especially in businesses related to cybersecurity and digital solutions, as well as to the rules of the Regional Council of Engineering and Agronomy of Bahia (CREA-BA) due to engineering activities related to system installation and projects. In addition, its industrial and assembly operations must comply with federal environmental legislation, including the National Environmental Policy and the Environmental Crimes Law, with potential licensing and environmental liability obligations at different levels.

In terms of environmental, social and governance practices, WDC Networks reports initiatives related to the supply of solar energy solutions, which contribute to distributed renewable electricity generation and CO² emissions reduction for its customers. The Ilhéus plant uses rainwater harvesting and solar and wind power sources, indicating environmental efficiency measures at its own facilities. On the social front, the company runs donation programs, waste collection campaigns such as plastic from beaches and batteries, and charity fairs in support of assistance organizations, in addition to investing in functional training and health benefits for employees and their families. In governance, it maintains an external audit committee and has engaged a large independent audit firm since 2017, in line with its status as a publicly traded company listed on B3. As the TaaS model evolves and with acquisitions such as the 51% stake in Infinite Consulting, specialized in network engineering and managed services, WDC is expanding its scope from distributor and assembler of equipment to integrated provider of technology solutions and services for telecommunications, IT and distributed energy.

As a company listed on B3, with common shares WDCN3, WDC Networks positions itself as a supplier of technological infrastructure and connectivity, security, automation and solar energy solutions, with a predominant focus on corporate clients, integrators and digital service providers. The business model combines equipment sales, local assembly with tax benefits and long-term lease contracts, resulting in recurring revenues distributed across various segments and markets. This combination of distribution, partial production and technology services supports the company’s presence in multiple links of the telecommunications and IT value chain, both in Brazil and in other Latin American markets, while keeping revenue predominantly concentrated in the domestic market and maintaining higher exposure to the telecommunications segment in its results structure.