Greta Shelley M.

Trade & Investment Commissioner

ProMéxico Switzerland

Prague, October 7th 2015

2

Quick facts about Mexico

Competitive advantages for investing in Mexico

Mexico: a leading economy

A country with competitive sectors

ProMéxico: your strategic partner

3

120 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 26 years14th largest countryby territory

Source: ProMéxico with information of INEGI.

+1,864 miles from end to end

Moscow

Barcelona

Same distance between

+1,864 miles from end to end

Tijuana

Mérida

4

5

=

Mexico is North America

+

+

GDP: 20.5 trillion USD

6

A country with great infrastructure

Mexico:

• 3rd country with most

airports.

• 58 international airports.

• 63 border crossings

• 68 ports for natural and domestic

traffic.

• 16,740 miles of railroads.

• 234,360 miles of roads

Source: ProMéxico, with information of CIA Factbook and SCT.

Lázaro

Cárdenas

Manzanillo

Veracruz

Tampico

Altamira

Guanajuato

Monterrey

Guadalajara

SLP

5 competitive advantages of Mexico

Human Capital

Sophisticated economy

Macroeconomic environment

Gateway to America

Internal market

7

Mexico will become the 8th largest economy

8Source: ProMéxico with information from Bloomberg and The Economist.

China

US

India

Indonesia

Japan

Germany

Brazil

Mexico

UK

France

2050

Economy moves up rankings

Economy moves down rankings

Economy remains at rankings

105,916

70,913

63,842

15,432

11,367

11,334

10,334

9,826

9,812

9,671

9*Ratings that are below the dotted line, are highly risky investment or speculative grade.

Source: ProMéxico with information of Fitch Ratings, Standar & Poor’s Rating Services, and Moody’s

Investor Service.

Mexico: sovereign debt credit ratings

A3

Baa1

Baa3

BBB+ BBB+

BBBBBB

BBB-

BBB+ BBB+

BBBBBB

BBB-

Positive rankings

Exports per capita

10

Canadá

EU

México

Rusia

Brasil

China

India

1934 2014

5,013.1

1,765

557.6

298.3

246.5

76.5

23.5

5x

13,362.3

5,087.6

3,220.7

3,456.2

1,110.1

1,712.8

251.9

Exports per capita (selected economies), 1993 - 2014

Thousand USD Thousand USD

Source: ProMéxico with information of GTA/ Bank of Mexico/ Ministry of Commerce and Industry of Brazil / Russia’s Central Bank/ BEA/ Stratcan.

Export platform

11

Through its network of free trade agreements, Mexico has privileged access to 46 countries (more than 1,200 million people).

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

Source: ProMéxico with information from Brazil: OAS; China: Chinese Ministry of Commerce; Colombia: Colombian Ministry of

Commerce; United States: Office of the US Trade Representative; Chile: Direcon; Mexico: Ministry of Economy.

6 economic complementation agreements

TPP

FTAs with 46 countries

The Pacific Alliance

12

Elimination of 100% of tariffs. 8% of them at a short or medium term.

Elimination of visas between members.

Platform for student and academic mobility.

Unification of stock exchanges through the Latin American Integrated Market (MILA, in its Spanish acronym).

Standardization of health and regulatory certifications.

30 observer countries. México will hold the presidency pro tempore in 2014.

Major investors in Mexico

13

FDI in Mexico per country of origin (1999-Q1 2015)

183,43750,837

50,791

23,916

16,031

9,800

9,7199,398

8,516

5,765

28,851

USA Netherlands

Spain

Canada

Belgium

JapanSwitzerland

GermanyUK

Luxemburg

Other

Source: ProMéxico with information from the Ministry of Economy.

Source: ProMéxico with information of FDI Intelligence, from the Financial Times.

Selected companies. Records from FDI Markets Database.

Investments in Mexico 2013-2014

14

Brazil MexicoGermany Spain UK USA

PERCENTAGE OF GRADUATES IN THE AREAS OF ENGINEERING AND MANUFACTURING

Mexico s graduates in engineering and manufacturing

15

20122011

20102009

20082007

Source: ProMéxico with information of UNESCO.

Exports of Medium and high manufactures as percentage of the GDP (2013)*

16

28.9%

24.8%

16.7%

14.1%

12.4%

1

2

3

4

5

Germany

South Korea

China

Mexico

France

A sophisticated economy

Source: ProMéxico with information of IHS – Global Insight. / * Only G20 nations.

We are leaders in key sectors

17

Mexico is the main exporter of medical devices in Latin America.

Mexico is the largest exporter of two-door refrigerators with freezer.

5th

exporter of computers.

10th

exporter of cellphones.

380 billions in exports in 201350% in medium and high-

tech manufactures

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

4th

auto parts exporter

Map of Public R&D Centers in Mexico

18Source: ProMéxico.

Procedures to start a business

19

Number of procedures to start a business

Days needed to start a business

Number of procedures to obtain a building permit

Days needed to obtain a building permit

82Mexico

91USA

97Germany

400Brazil297Russia270China249Canada

120Czech Republic

155Chile

161Poland

168India

Mexico

Germany

Canada

Russia

India

Czech Republic

China

Chile

Brazil

USA

Poland

Mexico

Poland

Canada

China

Brazil

India

Czech Republic

USA

Chile

Russia

Germany

Canada

USA

Chile

Brazil

China

Poland

India

Germany

Mexico

Russia

Czech Republic

6

15

19.5

5

5

5.5

14.5

27

30

33

107.5

6

7

9

1

4

6

6

9

12

13

13

11

16

18

9

15

13

15

25

33

35

36

NEW

Source: ProMéxico with information of Doing Business, 2014.

Source: ProMéxico with information of http://reformas.gob.mx 20

Reforms into action

Energy Telecom Competence Finance

FiscalPoliticalEducation

Labor National Code of Criminal Procedure

Law of Citizen Protection

Transparency

According to KPMG, aerospace parts manufacturing costs in

Mexico are approximately 13% lower than in the United States.

In 2012, exports from this sector accounted for more than 5 billion dollars. Mexico is the 6th supplier to the American aerospace industry.Mexico is a participating state of the Wassenaar Arrangement.

Aerospace

21

There are 287 aerospace companies in Mexico.

Source: ProMéxico with information of KPMG, US Census Bureau, Mexican Ministry of Economy and Bombardier.

Mexico

Netherlands

Canada

France

U.K.

Italy

United States

Germany

Australia

Japan

Ford s plant in Hermosillo, Mexico, is the only facility in the world that produces the new Fusion model and the Lincoln MKZ.

Automotive sector

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• We export almost four times more than Brazil and India combined.

• We are a strategic supplier to the North and Latin American automotive markets.

• In 2012, Mexico was the leading auto parts supplier to the United States.

• 10 of every 100 light automobiles sold in the United States are manufactured in Mexico.

• 89 of the top100 auto parts companies in the world have production facilities in Mexico.

Mexico is the8th

vehicle producer in the world.

4th

exporter of new light vehicles

in the globe.

Source: ProMéxico with information of OICA, Global Trade Atlas, AMIA, Ward’s Automotive Reports, AASA, 2011.

Increase in production capacity (2012-2019)

Tijuana

50,000 units

Aguascalientes

250,000 units

Salamanca

240,000 units

Morelos

75,000 units

Puebla

75,000 units

San José de Chiapa

150,000 units

San Luis Potosí

80,000 units 150,000 units

Aguascalientes

300,000 units

Nuevo León

300,000 unitsCelaya

250,000 units

Source: ProMéxico. 23

According to KPMG, electronics assembling costs in Mexico are 12% lower than in the

United States.

Electric-electronic

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6º

Electronics assembling(US=100)

Source: ProMéxico with information of Global Trade Atlas, KPMG and Manufacturer Market Insider.

- It is the leading flat-screen television exporter in the world.

- The main exporter of refrigerators with freezer and separate external doors.

- The main supplier of the electronic industry in Latin America.

- The 4th global exporter of computers.- 9 of the top 10 transnational electronics

manufacturing services (CM s) have operations in Mexico.

Mexico is the

leading home appliance exporter in Latin America.

exporterin the world.

Mexico

U.K.

Netherlands

Italy

France

Canada

Germany

United States

Australia

Japan

25

Leadership in the agrifood sector

1st Exporter and producer

1stExporter

1st

Exporter

1stExporter 3th

Exporter

2ndExporter of watermelon, melon and papaya

4th

Exporter

3th

Exporter

Exporter4th

of vegetables

Source: ProMéxico with information of the GTA.

Solid infrastructure

26

technology parks30clusters that gather more than companies30 1,000

400 development centers with quality certifications

3,200companiesrelated with the IT industry

Source: ProMéxico with information of Ministry of Economy, 2013.

oil producer in the world.

in refining capacity.

Energy sector

27

The Energy reform allows foreign businesspeople to

participate in profit sharing contracts.

Enables collaboration with the private sector to

engage in transmission and distribution of

electricity.

Mexico is the most attractive country in the world to invest in solar projects.

3rd

5th

13th

Source: ProMéxico with information of PEMEX and EPIA.

Opportunities in the electric sector

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Metal stamping 1.6 bn USD

Mechanical assembly 1bn USD

0.8bn USD

0.7bn USD

0.6bn USD

0.5bn USD

0.4bn USD

0.2bn USD

0.1bn USD

Plastic injection molding

Machining

Metal fabrication

Laminating

Foundry

Dielectric material

Ceramic or porcelain0.1bn USD

Sintering

10

Source: ProMéxico with information provided by the major OEMs and Tier 1 in the country.

opportunities

29

Construction

Power generation equipment

Metal fabrication

Machining and equipment

Plastic industry

IT equipment

Other sectors

29.3bn USD

22.5bn USD

21.2bn USD

16.6bn USD

13.4bn USD

11bn USD

53bn USD

Opportunities in the manufacture of wind power equipment

Source: ProMéxico, with information of the Ministry of Energy.

7opportunities

Mining industry in Mexico

30

Mexico isthe first destination

for exploration investment in

Latin America and fourth worldwide.

In 2013

Mexico ranked

5th place

as best destination toinvest in mining projects.

Mexico is the largest producer and exporter

of SILVER in the world.

The secondglobal producer of

fluorite and bismuth. The second largest

GOLD producer

in Latin America.The third largestCOPPER producer

in Latin America.

Source: ProMéxico, with information of The Silver Institute, Mexican Mining Chamber (CAMIMEX), Global Trade Atlas, Metals Economics Group, INEGI, Mineral Commodity

Summaries, Behre Dolbear and U.S. Geological Survey, 2013.

¿What s ProMéxico?

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Foreign Direct investment

Internationalization

Exports

Entity of the Mexican government looking for:

Our global network

3248 ProMéxico bureaus in 31 countries

Europe and Africa

BerlinBernBrusselsCasablancaFrankfurtIstanbulThe Hague

LondonMadridMunichMilanMoscow Parisstockholm

Latin America

BogotáBuenos AiresGuatemalaHavanaLimaSantiago de ChileSao Paulo

Asia, Middle East and Oceania

BeijingDohaDubaiHong KongKuala LumpurMelbourne

New DelhiSeoulShanghaiSingaporeTaipeiTokyo

BostonChicagoDallasDetroitHoustonLos AngelesMiamiMontreal

North America

New YorkPhoenixSan FranciscoSeattleTorontoVancouver Washington

www.promexico.gob.mx

bern@promexico.gob.mx

http://www.hechoenmexicob2b.com

@ProMexicoTW

Greta SHELLEY M.

Trade & Investment Commissioner

33

B2B