1. HSBC MEXICO BUSINESS SEMINAR November 7 th, 2011 Carlos Guzmán Bofill, ProMéxico’s CEO

2. Mexico’s Q2 2011figures Compared with 19.6 billion dollars in 2010. During the first half of 2011, we received 11 billion USD of Foreign Direct Investment. Compared with close to 300 billion USD in 2010. Until August 2011, our exports reached 230 billion USD. Mexico’s GDP grew 3.9% during the first half of 2011. Mexico is estimated to grow 4% in 2011, almost twice than the advanced economies, which growth is estimated at 1.6%. We have been climbing positions. We were 8 th in 2009 and 6 th in 2010. During the first half of 2011, we were the 5 th exporters in the automotive sector. 2 Source: Ministry of Economy/ Ministry of Finance/ IMF/ National Institute of Statistics, Geography and Informatics of Mexico/ ProMéxico with data of Global Trade Atlas and AMIA.

3. Mexico is a low-risk country México ranks as a low-risk country in the Emerging Market Overheating Index, published by The Economist, which grades 27 countries. Source: http://www.economist.com/node/21522520http://www.economist.com/node/21522520 3 — Based on six indicators: inflation, GDP growth, unemployment, credit growth, real interest rates and change in current- account balance. Argentina Brazil Hong KongIndiaIndonesiaTurkey Vietnam SingaporeThailand Egypt PeruPhilippines Chile China Colombia Poland Saudi Arabia South Korea Venezuela RussiaSouth Africa Czech RepublicMexico PakistanTaiwanMalaysiaHungary

4. With 11 trade agreements, Mexico has privileged access to 43 countries (one billion people). Mexico is a trade and logistics platform 4 SOURCE: IMF, WTO, SCT, SAT, SHCP, Presidency Number of FTA per country Lázaro Cárdenas Manzanillo Veracruz Tampico Altamira Guanajuato Monterrey Guadalajara SLP Mexico is the ideal export platform for reaching 2/3 of the world’s GDP. Mexico is part of the world’s largest economic block (NAFTA market= 17 trillion USD). Mexico invests 5% of its GDP in infrastructure. The average of OECD’s 34 countries is 3.5% of GDP.

5. Mexico has an average cost advantage of 18% (over 17 industries), compared to the US (KPMG). It is the most competitive country in terms of costs and taxes, according to Global Benchmark Report 2011, published by the Danish Industry Confederation. The Alix Partners Manufacturing Outsourcing Cost Index ranks Mexico as the best country, with a 25% advantage in terms of cost (better than all the BRIC countries). Source: Competitive Alternatives 2010, KPMG; Global Benchmark Report 2011, of the Danish Industry Confederation; Manufacturing Outsourcing Cost Index 2010, Alix Partners. Competitive Cost Advantages and human capital THE MOST COMPETITIVE PLACE FOR MANUFACTURING IN THE NAFTA MARKET 5 More than 100,000 engineers and technicians graduate every year from science and technology programs.  Which exceeds the number of graduates in countries such as Germany, Canada and Brazil.  Close to 5 times the number of graduates in the UK (20,000 in UK, according to EngineeringUK). HIGHLY SKILLED TALENT

6. Other competitiveness indicators 6 INDEXAUTHORPOSITIONCONTEXT FDI Confidence Index AT Kearney 8 Mexico went from the 19 th to the 8 th place in terms of this index, which measures global confidence in Foreign Direct Investment. Global Manufacturing Competitive- ness Index 2010 Deloitte7 Mexico became the 7th most competitive country in manufacturing, above countries like Germany, Singapore, Canada and Poland. Trade Confidence Index HSBC3 According to this index, Mexico ranks 3th in the world, just below India and the United Arab Emirates. It measures the expectations and trade growth for the next 6 months Global Services Location Index 2011 AT Kearney 6 Mexico ranks 6 th in this index, jumping five places since 2009. This index ranks the best countries for “outsourcing” through the world.

7. We are improving in the rankings For sixth consecutive year, Mexico improved its position. Beyond BRIC’s. Reforms that enhanced our ranking: –Construction permits (+6). –Getting credit (+5). –Trading across borders (+3). –Paying taxes (+1). Source: World Bank, 2011;, World Economic Forum 2011; IMD, 2011. Mexico’s position 2012 2011 GLOBAL COMPETITIVENESS REPORT 2011 7 DOING BUSINESS 2012 Mexico registered the largest improvement in the American continent. Our country advanced in 10 of the 12 pillars analyzed by the Index. 2012 2011 2010 According to IMD’s World Competitive Yearbook 2011, in terms of economic performance, Mexico was ranked 16th of 59 countries. WORLD COMPETITIVENESS YEARBOOK 2011 2011 2010 Mexico’s position

8. ProMéxico’s strategies 8 ManufacturesServices Aerospace Automotive E&E Renewable energies and energy efficiency Creative industries IT Added value Agrifood (integral) Mining (integral) Sectors Primary Economy Secondary Economy Tertiary Economy Life Sciences Infrastructure, educative services and economic policy

9. Why UK should be interested in Mexico? INTERNAL MARKET Second largest market in Latin America. The GDP per capita (PPP) in Mexico for 2011 is estimated at $ 15.113 USD. (IMF) EXPORTS OF MANUFACTURED GOODS STRENGTH Over 80% of exports for 2010 were manufactures. The Index of Technological Sophistication of Mexican export products is above the average for Latin America and above India. (OECD) Joint Venture opportunities between Mexican and British companies to tap the American and European markets HUMAN CAPITAL The UK is the Second country in the world with more Mexican students. More than 1,700 Mexican students enrolled in HE programs in the UK. (HESA) 9 CLOSE GOVERNMENT RELATION High level meetings. Nick Clegg’s goal of doubling trade in the coming years. Synergies towards climate change. Joint Action Plan between UKTI and ProMexico. FRIENDLY REGULATORY FRAMEWORK European Union-Mexico F.T.A. Agreement on the Reciprocal Promotion and Protection of Investments. Protocol between the UK and Mexico to amend the Double Taxation Convention. COMPATIBLE ECONOMIC MODELS Both are open economies. UK = capital intensive / Mexico = human capital intensive. Gateway to the US and Latin America (we have NAFTA and several agreements plus same language with South America except Brazil).

10. Thank you! 10

11. Mexico Today: Opportunities 11 AUTOMOTIVE AND AUTOPARTS FACTS Mexico is the 9 th vehicle producer in the world and the 6 th vehicle exporter worldwide. The value of our vehicle exports is twice that of Brazil and India combined. 18 of the main OEM's have facilities in Mexico. OPPORTUNITIES Parts for suspension and for transmission systems. Hybrid vehicle components. Thermoplastic resin profiles, pipes and connections. Steel laminates. Cold forging, amongst others. AEROSPACE FACTS 232 aerospace companies. Mexico manufactures sophisticated added value products (LearJet 85). Mexico was one of the top leading receivers of FDI projects in aerospace manufacturing in the last decade. OPPORTUNITIES Airplanes parts and spare parts. Remodeling services. MRO and FBO services. Ground support equipment. R&D and design activities, amongst others. Source: OICA/ GTA/ Aerostrategy/ Ministry of Economy.

12. Mexico Today: Opportunities 12 RENEWABLE ENERGIES FACTS Mexico is part of the “sun-belt” and ranks among the top countries with the highest solar irradiation. Mexico is the leading provider of solar photovoltaic modules in Latin America, with a production capacity of 245 MW (above Brazil, Chile and Argentina). Mexico is one of the most privileged of the world in terms of wind power potential (close to 71,000 MW). OPPORTUNITIES Renewable energies generation. Manufacturing of renewable energy devices. Energy efficiency. Energy switch. Alternative fuels, amongst others. MINING FACTS 4 th destination receiving investments in mining exploitation (Metals Economics Group). According to the Behre Dolbear Group, Mexico is in 5 th place as the best destination for investment in mining projects. Mexico is the world’s largest silver producer and a major supplier of metals, including lead, gold, zinc and iron. OPPORTUNITIES Exploration. Software development. Biotech. Safety technology. Robotics and excavators. Source: Ministry of Energy/ EPIA/ IEE/ Ministry of Economy.

13. ProMéxico’s solutions for investors ProMexico’s staff accompanies the investors in developing their full business projects in our country. Expert investment advice ProMexico schedules business agendas for investors in our country, in order to introduce them to key contacts, suppliers or locations. Business agendas Identification and selection of suppliers. Organization of business meetings with suppliers. Supplier development Linkage with government offices, academia, associations and other public and private organizations. One Stop Shop Ongoing assistance to companies that are already established in Mexico and want to expand their operations. Aftercare 13

14. Top 10 investments attracted by ProMexico (2010-2011) COMPANYCOUNTRY OF ORIGINSECTOR INVESTMENT (million USD) BRASKEM S.A. BrazilRenewable energy$ 2,500.00 CANNON POWER GROUP USARenewable energy$ 1,000.00 CANNON POWER GROUP USARenewable energy$ 1,000.00 VOLKSWAGENGermanyAutomotive$ 836.00 HONDA MOTOR CO., LTD. JapanAutomotive $ 800.00 ACCIONASpain Logistics and infrastructure $ 680.00 SERENITY BY THE SEA BAJA, LLC USATurism$ 600.00 OHL CONCESIONES, S.L. Spain Logistics and infrastructure $ 577.00 ACCIONASpain Logistics and infrastructure $ 560.00 CHRYSLER GROUPUSAAutomotive$ 550.00 14