1. PRESENTATION ABOUT December 2012 2013 PRESENTATION ABOUT December 2012

2. About ProMexico The agency of the Mexican government that works to: Attract foreign direct investment Boost the exports of Mexican products and services Support the internationalization of Mexican companies

3. What do we Offer in ProMexico? Diffusion of information ProMéxic o Boosting companies Training Consultancy Incentives Market opening Strategic linkage Creating business links Personal assistance Studies Country image Development of programs and projects DCC/ ACT Model/ Softlanding/ Aftercare/ Roadmaps/ Clusters articulation/ MOMA/ PROCEI

4. 4 Juárez Tijuana Chihuahua Hermosillo Culiacán Torreón Saltillo Monterrey Reynosa Zacatecas Guanajuato Guadalajara Querétaro Morelia Tecamachalco Toluca Distrito Federal (headquarters) Cuernavaca Tlaxcala Puebla Veracruz Oaxaca Tuxtla Gutiérrez Campeche Mérida Hidalgo SLP Aguascalientes Durango ProMéxico has 29 offices throughout the country Our National Network

5. 5 North America: Chicago Dallas Detroit* Houston Los Angeles Miami Montreal NY San Francisco Seattle* Toronto Vancouver Washington Latin America: Bogota Buenos Aires Guatemala Santiago de Chile Sao Paulo Europe and Middle East: Brussels Dubai Stockholm Frankfurt The Hague London Madrid Milan Paris Turkey Asia: Beijing Hong Kong* Shanghai Mumbai Seoul Singapore Taipei Tokyo 35 ProMéxico offices in 23 countries *Offices that will be opening soon Our Global Network

6. 6 2008 2009 2010 2011 2012 Investment projects

7. Contents Mexico at a Glance Country Profile Mexico, a Competitive Country Strategic Sectors 7

8. Mexico is part of North America 8 USA The market of these three countries is 18 trillion dollars. The market of these three countries is 18 trillion dollars. Canada Mexico

9. 9 Mexico shares a 3000 kilometer border with the US. Mexico shares a 3000 kilometer border with the US. And is the gateway to Latin America. And is the gateway to Latin America. United States Mexico We have a wide border with the US

10. 10 Mexico has access to two oceans. Mexico has access to two oceans. Atlantic Ocean Pacific Ocean And 67 deep sea ports that connect us to the world. Bioceanic access

11. Mexico is a big country 11 Mexico covers 2 million km 2, making it the 14 th largest country in surface area in the world. Mexico covers 2 million km 2, making it the 14 th largest country in surface area in the world. = / 8 X3 X

12. A country of young people 12 The median age of the population is 26 years. The median age of the population is 26 years. 112 million inhabitants 51% 48%

13. And a vast pre-Hispanic heritage 13 There are more than 42,000 archaeological sites and more than 31 sites declared Heritage of Humanity by UNESCO. There are more than 42,000 archaeological sites and more than 31 sites declared Heritage of Humanity by UNESCO. 6 th country in the world in terms of number of sites declared Heritage of Humanity.

14. Contents Mexico at a Glance Country Profile Mexico, a Competitive Country Strategic Sectors 14

15. Mexico’s Trade Balance 2011 15 NAFTA: +$101 billion USD LATIN AMERICA: +$11 billion USD ASIA: -$92 billion USD EUROPEAN UNION: -$18 billion USD OTHERS*: -$3 billion USD *Includes Africa, Oceania and other European countries Source: 2011 Data. Mexico’s Central Bank and Global Trade Atlas.

16. Contents Mexico at a Glance Country Profile Mexico, a Competitive Country Strategic Sectors 16

17. With 12 trade agreements, Mexico has privileged access to 44 countries (1.2 billion people). We are champions of free trade 17 SOURCE: IMF, OMC, Sea Rates. Number of FTA’s and countries Our FTA’s reach 2/3 of the world’s GDP.  Part of the world’s largest economic block (NAFTA).  NAFTA market= 18 trillion USD.  And we are the gateway to Latin America. Altamira-Belem (Brazil) 10 days Manzanillo- Arica (Chile) 9 days Altamira- Philadelphia (USA) 7 days Countries with FTA Lázaro Cárdenas- New York (USA) 10 days

18. 18 Solid macroeconomic environment SOURCE: INEGI and Central Bank. 1. 1986- GATT 2. 1992- Privatizations 3. 1994- NAFTA 4. 1995- Floating Exchange Rate 5. 1996- Central Bank Independence 6. 2000- FTA with the EU 7. 2002- Investment grade 8. 2006- Prepayment of debt 9. 2008- Deregulation 10. 2011- Application to the Trans- Pacific Alliance Inflation International reserves Exports 12345678910 Inflation Exports International reserves

19. Where do you want to invest? Where will the future growth be? Key variables to consider when evaluating where to invest 1.Macroeconomic environment 2.Open economy 3.Economic complexity 4.Total manufacturing cost 5.Domestic market 6.Demography 7.Workforce quality 8.Engineering graduates (per capita) 9.Democratic system 10.Human Development 19 BRIC-MIST Mexico Indonesia South Korea Turkey Brazil Russia India China

20. Source: Goldman Sachs. The N-11: More Than an Acronym. Global Economics Paper No: 153. March, 2007/ HSBC. 1/ Goldman Sachs forecast / International Monetary Fund. 2050 1 5th place 11th place 2011 Goldman Sach’s Forecast Gross Domestic Product (Billion Dollars) Mexico will become one of the main economies Goldman Sachs estimates that by 2050, Mexico will become the 5 th largest economy. World's largest GDP measured by PPP (Billion Dollars) According to HSBC, by 2050 Mexico will be the 8 th largest economy in the world. According to Accenture, Mexico will one of the Big Six in 2025.

21. Index Mexico’s Facts Mexico is a competitive country ProMexico’s Strategic Industries 21

22. Source: KPMG/ US Census Bureau/ Ministry of Economy/ Bombardier. Aerospace 22 According to KPMG, aerospace parts manufacturing costs in Mexico are approximately 16% lower than in the United States. There are approximately 250 aerospace companies in Mexico. In 2011, exports from this sector exceeded 4.3 billion dollars. Mexico has the second largest fleet of business jets in the world (after the US). Bombardier’s first composite business jet will be manufactured in Mexico. Mexico is the 7 th supplier to the American aerospace industry.

23. Automotive  Mexico is the 8 th vehicle producer in the world.  And the 4 th exporter globally.  We export almost three times more than Brazil and India combined.  We are a strategic supplier to the North and Latin American automotive markets.  In 2011, Mexico was the leading autoparts supplier to the United States.  Eleven of every 100 light automobiles sold in the United States are manufactured in Mexico.  84 of the top 100 autoparts companies in the world have production facilities in Mexico. Source: OICA/ Global Trade Atlas/ AMIA/ Ward’s Automotive Reports/ AASA, 2011. 23 Ford’s plant in Hermosillo, Mexico, is the only facility in the world to produce the new Fusion model and the Lincoln MKZ.

24. Electric-Electronic 24 Mexico is the leading home appliance exporter in Latin America. And the 6 th globally. It is the leading flat television screen exporter. The leading two-door refrigerator and freezer exporter. The 7 th global exporter of mobile phones. 8 of the top 10 transnational electronics manufacturing services have operations in Mexico. According to KPMG, electronics assembling costs in Mexico are 15% lower than in the United States. Source: Global Trade Atlas/ KPMG/ Manufacturer Market Insider.

25. Source: Unlocking The Sunbelt, EPIA/ Mexican Geothermics Association, AMG/ Atlas of Wind Resources, AMDEE/ KPMG. Mexico’s wind potential is estimated at 71,000 MW. Mexico is among the countries with the highest sun exposure. It is part of the “Solar Belt” and could generate enough energy to be self- sufficient and export. Mexico is ranked 4 th globally in geothermal energy generation. Mexico is the leading photovoltaic module supplier in Latin America. With a production capacity that exceeds that of Brazil, Chile and Argentina. Renewable energies 25 According to KPMG, solar cells and advanced battery production costs in Mexico are 13% lower than in the United States.

26. Medical devices 26 According to KPMG, medical device manufacturing costs in Mexico are 23% lower than in the United States. Mexico is the 5 th global exporter of medical instruments and devices. We are the largest exporter in the medical device industry in Latin America. And the 3 rd global exporter of suture needles in the world. Our country is the leading exporter of orthopedic items and gauzes and bandages in Latin America. Source: Global Trade Atlas/ KPMG.

27. Mexico is the leading exporter of Avocado. Mango. Guava. Papaya. Processed peppers. Sweetened, powdered cocoa. Fresh tomato. And the second exporter of Watermelon. Beer. Raspberry, blackberry and mulberry. Agri-Food 27 According to KPMG, processed food costs in Mexico are 15% lower than in the United States.

28. Fuente: The Silver Institute/ Cámara Minera de México (CAMIMEX)/ Global Trade Atlas/Metals Economics Group/ INEGI. Mining 28 According to Behre Dolbear, in 2011 Mexico was ranked 5 th best destination for investment in mining projects. Mexico is the leading country in Latin America and the 4 th globally in terms of receiving investments for mining exploration. Mexico is the leading silver producer and exporter globally. The second global fluorite producer and third bismuth producer. The second gold producer in Latin America.

29. Source: Competitive Alternatives 2012, KPMG/ Creative Economy Report 2010, United Nations/ ANUIES. Creative industries 29 Mexico has the largest film and videogame market in Latin America. It is the largest exporter of creative goods in Latin America. Mexico is building the Creative Digital City in Guadalajara, which will be the first industry hub in the region. Mexico has the largest technology talent pool in the Americas. Mexican films and TV shows are exported to more than 100 countries. According to KPMG, videogame production costs in Mexico are 40% lower than in the United States.

30. Information technology 30 According to KPMG, software development costs in Mexico are 40% lower than in the United States. Mexico is the natural IT services supplier to the Latin and North American markets Mexico is ranked 6 th in A.T. Kearney’s Global Services Location Index 2011 for its availability of human capital and financial appeal (costs). Gartner Consulting ranks Mexico 4 th global IT services supplier. Mexico is ranked 2 nd investment destination in Latin America with a 23% share in software projects in the region. Source: Competitive Alternatives 2012, KPMG/ A.T. Kearney/ Gartner/ CEPAL.

31. 31 www.promexico.gob.mx cesar.fragozo@promexico.gob.mx @ProMexicoTW +(8862) 2757-6526 International Trade Building Suite 2905, 29 floor, 333 Keelung Road Sec. 1 Taipei 11012, Taiwán 110 R.O.C Thank you!