REFORMS IN ACTIONOPPORTUNITIES FOR BRITISH

COMPANIES

Source: ProMéxico with information of http://reformas.gob.mx 2

Agenda

• Mexico at a glance

• Reforms into Action

• Q&A

Mexico: 14th largest countryEquals the

territory of the four largest countries in

EuropeGermany

Sweden

France

Spain=

3

4

Evolution of inflation, exports and international reserves in Mexico (1993- 2014)

Solid macroeconomic environment

797 BUSD ( 2014)

BUSD

Inflation rate 2014

4.08% record ofbillion USD397

Exports 2014

401 BUSD

Manufactures

Oil

Primary

Inflation

Reserves

record ofbillion USD195

Reserves 2014

Source: ProMéxico with information of INEGI / Bank of Mexico. Figures of 2014.

5

Mexico’s Retail Sales IndexIndex 2003=100; SA

GDP by PPP (1990-2018)

• $15,000 USD= median income.• According to forecasts, income will grow 20%

by 2016.

Large domestic market

Historic Forecast

Source: ProMéxico, with information from INEGI and IMF.

6

Mexico private Consumption outpaces its peers

36%

China MexicoBrazilColombiaIndiaIndonesia

58% 58% 61% 62%69%

2013 Private Consumption as a % of GDP

Source: ProMéxico with information of Instituto Brasileiro de Geografia e Estatística, Departamento Administrativo Nacional de Estadísticas, Instituto Nacional de Estadística Geografía e Informática, Central Statistical Organization, India, Badan Pusat Statistik, China National Bureau of Statistics, Haver Analytics.

7

118 million inhabitantsEquals the population of

Colombia, Spain and Australia combined

Territory and demographics are on our side

Men Women

The median age of our population is 27 years

14th largest countryby territory

Source: ProMéxico with information of INEGI.

8

Working age population per country

India

Mexico

Brazil

USA

UK

Spain

China

Japan

36.5%

26.4%

14.3%

8.7%

3.7%

-6.3%

-19%

-2.2%

Working-age Population (2010 to 2035, % change)

Source: ProMéxico with information of UN Population Division (2011) and the Economist Intelligence Unit in a KKR Report.

A country of competitive costs

9Source: ProMéxico with information of BCG Perspectives.

India Czech Republic

Austria

SwedenIndonesiaBrazil

PolandThailandSpainSwitzerlandTaiwan

AustraliaMexicoCanadaBelgiumItalyKoreaUnitedStates

China

RussiaUnited

KingdomHollandFranceJapanGermany

SmallestexporterLargest

exporter

Labor Electricity Natural gas Others

Average production cost index 2014

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We are committed to free tradeOur FTAs give privileged access to 1.2 billion consumers.

Brazil 8China 19

United States 20Colombia 42

Source: ProMéxico with information of Brazil; China: Colombia:; United States: ; Chile: Direcon; Mexico: Ministry of Economy.

45 countries with FTA’s

With the TPP, Mexico will increase its presence in Australia, Brunei, Malaysia, New Zealand, Singapore and Vietnam.

Main products exported from Mexico*

11Source: ProMéxico with information of Global Trade Atlas 2013.* Share based on the total exports in percentage.

Light vehicles32.4 bn USD

8.5%

Parts and accesories for

vehicles20.5 bn USD5.4%

Telephones and communication

equipment18 bn USD4.7%

Transportationvehicles17.6 bn

USD4.6%

Computers and components

17.4 bn USD4.6%

Television receiver

16.7 bn USD4.4%

Electrical conductors

10.2 bn USD2.7%

Unwrought semi-

manufactured gold5.8 bn USD1.5%

Tractors5.6 bn USD1.5%

Refrigerators and cold equipment

4.4 bn USD1.2%

Surgical and medical instruments

5.1 bn USD1.3%

Seats and their components

5.3 bn USD1.4%

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Mexico is North America

GDP: 19 trillion USD=

+

+

Represents more than

1/4

of the world’s Gross Domestic Product

(GDP)

Trade between NAFTA partners accounts for more than 100 million dollars per hour.

It produces goods and services worth 19 trillion dollars per year.

Nearly 474 million people (7 out of 100 inhabitants in the world) trade freely in the region.

NAFTA is the largest free trade region in the world.

13

FDI flows into Mexico (1999-2014*)MUSD

Record-high39,200

1999 2000 2001 2002 2003 2004 2005 2006 20072008 2009 2010 2011 2012 2013 2014 2015

30,000**

22,568

Source: ProMéxico,with information of the Ministry of Economy. UNCTAD *Q3. 2014 figures.

15,310*

14Source: ProMéxico with information of the Ministry of Economy.

FDI in Mexico per country of origin (2000-2014)

171,54349,51348,121

22,780

15,998

9,5709,0207,866

8,409

5,678

26,263

USA Netherlands

Spain

Canada

Belgium

UKSwitzerland

GermanyJapan

Luxemburg

Others

Major investors in Mexico

15

FDI inflows in Mexico per sector

ManufacturesFinance and Insurance

Media services

CommerceMining

Real estateTourism

ConstructionProfessional services

173,28066,24731,00422,01515,52813,97313,10412,1526,9735,847

40,544Support services to business

Others

(2000-2014 / figures in million USD)

Source: ProMéxico with information of the Ministry of Economy.

Mexico’s global leadership

16

IT • 3rd largest exporter in the world.

AUTOMOTIVE AND AUTO PARTS• 8th producer and 4th exporter globally of new light vehicles in the world.

ELECTRIC-ELECTRONIC• Leading flat television screen exporter in the world.

AEROSPACE• Mexico is the 6th supplier to the American aerospace industry.

Source: ProMéxico with information of FEMIA, GTA, AMIA y OICA.

Mexico is the main exporter of medical devices

in Latin America

A thriving future

17Source: ProMéxico with information of Goldman Sachs. The N-11: More Than an Acronym. Document of world economy No: 153. March 2007/ HSBC/ ACCENTURE.1/ Goldman Sachs Forecast/ International Monetary Fund.

In 2025

According to Accenture,

Mexico will be one of the Big

Six.In 2050

According to HSBC Mexico will be the 8th largest economy.

5 Mexico

4 Brazil3 India2 USA1 China

LARGEST ECONOMYin the world

15th

Source: ProMéxico with information of http://reformas.gob.mx 18

Agenda

• Mexico at a glance

• Reforms into Action

• Q&A

Source: ProMéxico with information of http://reformas.gob.mx 19

Reforms into action

Energy Telecom Competition Finance

FiscalPoliticalEducation

Labor National Code of Criminal Procedure

Law of Citizen Protection

Transparency

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2.5 - 3% +0.1% +0. 5%+1% +0. 3% 4.4 - 4.9%

Labor Reform

Telecom Reform

Energy Reform

Financial Reform

Impact of reforms in GDPForecasts of structural reforms effect on GDP Growth, (%)

Natural GDP Growth Rate

(2013)

New Natural GDP

Growth Rate (2018)

Source: ProMéxico with information of SHCP.

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SUPPORT & SERVICES

22

Exports

Internationalization

Foreign directinvestment

2008

2009

2010

2011

2012

Major projects 2008-2014

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2013

2014

Our global network

2448 ProMéxico bureaus in 31 countries

Europe, Middle East and Africa:BerlinBernBrusselsCasablancaFrankfurtIstanbulThe Hague

LondonMadridMunichMilanMoscow Parisstockholm

Latin AmericaBogotáBuenos AiresGuatemalaHavanaLimaSantiago de ChileSao Paulo

Asia

BeijingDohaDubáiHong KongKuala LumpurMelbourne

New DelhiSeoulShanghaiSingaporeTaipeiTokyo

BostonChicagoDallasDetroitHoustonLos AngelesMiamiMontreal

North AmericaNew YorkPhoenixSan FranciscoSeattleTorontoVancouver Washington

Mario Alberto González Alvarez

Director for Trade and Investment

ProMexico UK

www.promexico.gob.mx

mario.gonzalez@promexico.gob.mx

0207 811 508 Halkin StSW1X 7DWLondon

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