M EXICO ’ S COMMITMENT TO F REE T RADE July 1 st, 2014

2 Record-high 176 Billion USD Record-high Billion USD 380 Inflation 2013Reserves 2013Exports % Solid macroeconomic environment Evolution of inflation, exports and international reserves in Mexico ( ) Manufacture s Oil Primary Reserves Inflation Source: ProMéxico with information of INEGI / Bank of Mexico. Billion USD

3 We are commited to free trade Our FTAs give privileged access to 1.2 billion consumers. Brazil 8 China 19 United States 20 Colombia 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.

4 Components of aggregate demand in Mexico Real growth rate Q – 3rd Qtr over values in Mexican pesos Concept Growth Total demand Intake Gross fixed capital formation Exports of goods and services Source: ProMéxico, with information of INEGI, 2014.

Exports per capita 5 Source: ProMéxico with information of GTA/ Bank of Mexico/ Ministry of Commerce and Industry of Brazil / Russia’s Central Bank/ BEA/ Stratcan. Canada USA Mexico Russia China Brazil India , , , , , , , , Exports per capita (selected economies), Thousand USD x5

Total trade in comparison with GDP : NAFTA 55.6% 26.7% 16.4% 23.1% 51.4% 60.4% Mexico USA Canada Mexico USA Canada Source: ProMéxico with information of INEGI Banco de México/ Stratcan/ BEA.

7 MUSD Record-high 38,286 5,821* FDI flows into Mexico ( *) Source: ProMexico with information of the Ministry of Economy. General Directorate of Foreign Investment. */ Figures to Q

Germany: 7 th investors in Mexico 8 Source: ProMéxico with information of the Ministry of Economy. FDI in Mexico per country of origin (1999-Q1 2014) 173,475 47,156 43,966 17,832 14,724 9,119 8,654 7,892 7,872 5,144 26,263 USA Nether- lands Spain Canada Belgium UK Switzerland Germany Japan Luxemburg Others

German investment in Mexico 9 Source: ProMéxico with informacion of the Ministry of Economy. Record-high 1.7 billion USD USD

Mexico’s FDI outflows (Million USD) 10 Source: ProMexico with information of UNCTAD. 25,597 12,937 MUSD

Exports of Medium and high manufactures as percentage of the GDP (2013)* % 24.8% 16.7 % 14.1% 12.4% Germany South Korea China Mexico France A sophisticated economy Source: ProMéxico with information of IHS – Global Insight. / * Only G20 nations.

Mexico’s global leadership 12 IT 3rd largest exporter in the world. AUTOMOTIVE AND AUTOPARTS 8 th producer and 4 th 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.

Automotive Electric-electronic Medical devices Auto parts Aerospace Tijuana Tecate Mexicali Nogales Hermosillo Ciudad Juárez Chihuahua Los Mochis Culiacán MonclovaNuevo Laredo Reynosa Tampico Monterrey Torreón Ramos Arizpe Saltillo Zacatecas S.L.P. Aguascalientes León Querétaro Ciudad Sahagún Guadalajara Silao Estado de México Morelos Puebla Tlaxcala Map of advanced manufacturing in Mexico 13 Mérida Source: ProMéxico.

(Billion USD / % of the total share) Exports in the advanced manufacturing corridor in Mexico, Source: ProMéxico with information of INEGI. Aguascalientes 6.2 (1.95%) Guanajuato 10.0 (3.1%) Tlaxcala 1.0 (0.3%) San Luis Potosí 7.2 (2.2%) Querétaro 7.4 (2.3%) Hidalgo 1.5 (0.5%) Puebla 12.3 (3.8%) Nuevo León 25.8 (8.1%)

Trade between tlaxcala and the US 15 Source: ProMéxico with information of Brookings.

(Units) 13,900,000 16,355,000 Canada 2,000,000 Mexico 1,000,000 USA 10,900,000 Source: ProMéxico with information of the vehicle associations of each country. Canada 2,380,000 Mexico 2,930,000 USA 11,045,00 NAFTA’s vehicle production ( )

Increase in production capacity 17 Tijuana 50,000 units Aguascalientes 250,000 units San Luis Potosí Celaya 80,000 units 250,000 units Salamanca 240,000 units Morelos 75,000 units Puebla 75,000 units San José de Chiapa 150,000 units Source: ProMéxico with data from Near-Sourcing: Made in Mexico

Emerging opportunities for German companies in the automotive sector 18 opportunities in the automotive sector Punching and stamping 11.8 bn USD 10 Foundry 9.9 bn USD Forging 9.2 bn USD Machining 9.1 bn USD Injection molding 6.4 bn USD Die casting 3.9 bn USD Other components 3.3 bn USD Auto interiors 2.7 bn USD Electronic assembly 2.5 bn USD Cables and wires 2.2 bn USD Source: ProMéxico with information provided by the major OEMs and Tier 1 in the country.

+52 (55) Camino a Santa Teresa 1679, Col. Jardines del Pedregal CP 01900, México, D.F. 19