1. Building a Corporate Supply Chain platform

3. Delivered Value

4. Differentiation

5. Magical experiences

6. Business Model

7. Tourism mix Cancun / Riviera Maya Country of Origin SIM 2010 2010XCARETXEL-HÁXPLOR 42.1% UNITED STATES 15.8%29.0%41.4% 26.7% MEXICO42.7% 24.4%22.6% 12.6% CANADA 6.4%15.3%18.5% 7.2% EUROPE 4.8%2.6%4.2% CENTRAL & SOUTHAMERICA 21.3 21.3%7.6% 6.6% 3.6% SPAIN 7.0%11.3% 2.7% 3.2% GREAT BRITAIN 1.8% 9.5%3.6% 0.5% REST OF WORLD 0.3% 0.5%

8. Experiencias Xcaret: México (34.4%) Estados unidos (11.6%) Canadá (18.3%) España(39.0%) Brasil (34.9%) Argentina(22.8%) Reino Unido(10.3%)

9. 9 Building a Corporate Supply Chain platform Define corporate team and roles Define plan and scope – Initial focus on indirect goods and capital investments(not services) – Standard codification system to classify sku´s – Spend analysis on commodities/categories (80/20) – Identify high potential savings commodities Define negotiation approach to supplier – Volume Leverage – Centralized solution with local execution Work process flow Category profiling Total Spend analysis Prioritize top OEM/MRO commodities Negotiation Implementation - deployment

10. 10 Launching a corporate sourcing process Goods & Capital Management Performance Implementation Build structural platform –Define segregation process –Use an standardized classification code –Prioritize high spending categories Global solution with local execution –Initiate sourcing process focusing on speed to cash –Look for new solution for CNT reduction

11. 11 Usage of all levers to reduce purchase price Reduce purchase price Leverage market power Standardize Set correct product tolerances Substitute Revise specifications Make changes Tighten Loosen Reduce custom products Increase purchase quantities Unbundle contracts Consolidate suppliers Combine with other materials Compare across facilities Try out new suppliers Eliminate middle person Increase use of components/ subassemblies Reduce purchase price Leverage market power Standardize Set correct product tolerances Substitute Revise specifications Make changes Tighten Loosen Reduce custom products Increase purchase quantities Unbundle contracts Consolidate suppliers Combine with other materials Compare across facilities Try out new suppliers Eliminate middle person Increase use of components/ subassemblies

12. 12 Overall approach structured according to waves July 2011 December 2011 December 2012 Pilot Wave 1 Wave 2 Diagnostic Top 3 Categories Next Categories Next commodities Pilot results will define strategy for following waves

13. 13 Example of Category Spending Matrix Groceries 1.2 MUSD 95 skus Seafood 1.9 MUSD 46 skus Specialties 0.4 MUSD 25 skus Meat & Poultry 4.9 MUSD 80 skus Cleaning solutions 0.6 MUSD 40 skus Produce 0.6 MUSD 60 skus Bakery 0.5MUSD 65 skus + Value Complexity + _ _ Oil 0.4 MUSD 10 skus Pilot

14. Levels of consolidation on purchases Levels of consolidation on purchases 14 LeaderRequirements Direct involvement of area managers Establishment of agreements for consolidation Interdisciplinary team effort CEO Deployment of initiative Direct involvement of top management Multidisciplinary team effort Direct drive Establishment of criteria for consolidation Internal team effort General Manager Area Manager Business Unit Consolidation Corporate Consolidation Area Consolidation High Low Agressive Moderate Conservative

15. 15 Data analysis and candidates selection Demand consolidation Purchasing Strategy Bid process Buy Decision & Agreement Contract administration High volume & turnover categories 1.MRO 2.Office supplies 3.IT equipment Category selection Project team conformation Demand trends and consumption pattern analysis Purchasing models Standardization of specification Market intelligence: 1.Capacities 2.Price history 3.Supplier´s location Define Bid structure Timeline and responsibles Bid launch Bid reception Bid evaluation Implementation Methodology Cost reduction monitoring Performance metrics evaluation Agreement administration T&C revision Agreement Follow up metrics

16. 16 Project resources needed Dedicated resources are needed to guarantee speed to cash Look for practical approach at all stages – Standardized code makes classification complicated and difficult for consolidation – OEM/Brand classification facilitates consolidation, spend analysis and negotiation with vendors Spare parts standardization requires a separate project – Standardization requires technical validation and may delay speed to cash Define clear rules and communication channels for data management

17. Pilot consolidation results Achieved average savings of 10-15% per category Increase credit leverage from 15 days to 60 days Reduced 50% Supplier base by volume consolidation Improved Supplier performance driven by evaluation Estimated potential of 15-20% inventory optimization thru standardization between BU. 17

18. Productivity 2011 29% Incoming Avg: Jan to July = 10.7 & Aug to Dec = 13.8 (orange line) Processed Avg: Jan to July = 10.2 & Aug to Dec = 14.1 (green line) 37% POlinesPOlines

19. Resources Suppliers Process / Sistems Strategy Collaboration in SCM……….. All companies are different. They may sell the same products and services to the same people in the same volumes. But it is the very culture of companies that dictates how this is done.

20. Thankyou Felipe Fernandez Supply Chain Director ffernandezc@experienciasxcaret.com.mx