Competitive advantages for investing in Mexico Mexico: a leading economy A country with competitive sectors 3 ProMéxico’s strategies

Competitive advantages for investing in Mexico 4

Exports platform Internal market Human capital Advanced manufacture Macroeconomic environment Mexico’s competitive advantages 5 competitive advantages 5

Forecasts Fuente: Goldman Sachs. The N-11: More Than an Acronym. Documento de economía mundial No: 153. Marzo de 2007/ HSBC/ ACCENTURE.1/ Pronóstico de Goldman Sachs / Fondo Monetario Internacional th place 2013 World’s largest economies 14th place Goldman Sach’s Forecast Gross Domestic Product (Billion USD) 6 Gross Domestic Product (Billion USD) 5th Goldman Sachs estimates that Mexico will be the 5th largest economy by Big Six According to Accenture, Mexico will be one of the Big Six in th According to HSBC Mexico will be the 8th largest economy in the world by USA China Japan Germany France UK Brazil Russia Italy India Canada Australia Spain Mexico South Korea

Solid macroeconomic environment 7 Source: INEGI / Bank of Mexico. Evolution of inflation, exports and international reserves in Mexico ( ) Reserves record: 176 billion dollars Exports record: 380 billion dollars Reserves

FDI flows into Mexico ( *) 8 Source: Ministry of Economy. General Directorate of Foreign Investment. */ Figures to September Record-high MUSD

9 A3 Baa1 Baa3 BBB+ BBB BBB- BBB+ BBB BBB- Positive Ratings * Scores that are below the dotted line are investments with high degree of risk or speculation. Source: Fitch Ratings, Standar & Poor’s Rating Services, Moody’s Investor Service.

Exports platform Internal market Human capital Advanced manufacture Macroeconomic environment Mexico’s competitive advantages 5 competitive advantages 10

Our FTAs give privileged access to 61% of the world’s GDP Number of countries with privileged access * We are committed to free trade 11 Sources: Brazil; China: Colombia:; United States: ; Chile: Direcon; México: Ministry of Economy.BrazilChina:ColombiaUnited States: DireconMinistry of Economy.

Easy access to the world 12 Days port to port DestinationGermanyBrazilChinaColombiaKoreaUSIndiaMexicoPolandTurkey New York L.A Rotterdam Yokohama Río de Janeiro Shanghai Shenzhen Average Fuente:Sea Rates

Source: SCT. Lázaro Cárdenas Manzanillo Veracruz Tampico Altamira Guanajuato Monterrey Guadalajara SLP 13 A country with great infrastructure

Fuentes: SCT/ US Department of Transportation. 14 A country part of NAFTA

Exports platform Internal market Human capital Advanced manufacture Macroeconomic environment Mexico’s competitive advantages 5 competitive advantages 15

Demographics on our side 16 Population: 122 milliones

Domestic Market: main features 17 Consumer Expenditure Chart and GDP Growth - Source: Trading Economics GDP TREND: GDP per Capita (Actual): $ 8519 GDP growth rate (2015): 3.5% CONSUMER EXPENDITURE Actual: MXN milliones (highest level ever)

Exports platform Internal market Human capital Advanced manufacture Macroeconomic environment Mexico’s competitive advantages 5 competitive advantages 18

Labor Market 19 Labor Force: 52 milliones Expected Labor Force (by 2020): 83 milliones Labor Force Chart – Source: Trading Economomics

Quality of Mexican labor force 20 Source: IMD Competitiveness Yearbook, 2012

Exports platform Internal market Human capital Advanced manufacture Macroeconomic environment Mexico’s competitive advantages 5 competitive advantages 21

22 Most competitive total costs  Mexico’s ranked 11 th in terms of Economies of Scale Availability

MEDICAL DEVICES We are the largest exporter in Latin America and main supplier to the US. AUTOMOTIVE AND AUTOPARTS 8 th producer and 4 th exporter globally of new light vehicles in the world. AEROSPACE Mexico is the 6th supplier to the American aerospace industry. ELECTRIC-ELECTRONIC Leading flat television screen exporter in the world. Source: FEMIA/ GTA/ AMIA/ OICA billions in exports 50% medium and high tech manufactures We are leaders in key sectors 23

ProMéxico’s strategies 24

What Do We Offer in ProMéxico? 25 ProMéxico Boosts activities aimed to present an overview of international business and trade. It also seeks to encourage enterprises and strategic sectors to reach international markets and promote the country's image. Assists clients to reach a specific goal, through training, personal assistance or consulting. Brings companies together and link them to private or public organizations and academia, among others, with specific goals that are usually project-related. Simplifies the execution or increases the appeal of a project, whether for export, FDI or internationalization, through incentives, studies or by opening markets. Development of programs and projects DCC/ ACT Model/ Softlanding/ Aftercare/ Roadmaps/ Clusters articulation/ MOMA/ PROCEI

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