1. ©2013 Kansas City Southern Mexico-US Chamber of Commerce 1

2. ©2013 Kansas City Southern U.S. – Mexico cross-border trade exceeds pre- recession levels 2 Source: Board of Governors of the Federal Reserve System and US Census Bureau

3. ©2013 Kansas City Southern Foreign Direct Investment (FDI) in Mexico 3  Foreign Direct Investment (FDI) for 2012 reached $15.4 bn  2013 FDI for the 1 st half of 2013 reached $10.2 bn  Manufacturing sector is key in 2013 with 83.4% investments  From 1999 to 2013 FDI accounts $335 bn 2012 FDI Projects of More Than $50 USD Million Elaboration by KCS Market Research based on Promexico data. Tourism and Financial services are not shown on the map

4. ©2013 Kansas City Southern Mexico Automotive Renaissance 4 KCS currently has access to nine automotive plants in Mexico: Chrysler Fiat (Toluca) Chrysler (Encantada) Ford (Cuautitlán) GM (San Luis Potosí) GM (Rojas) GM (Silao) Nissan (Aguascalientes) Nissan (Cuernavaca) VW (Puebla) Additional plant openings in 2013-15: Honda (Celaya) Mazda (Salamanca) Nissan (Aguascalientes) Audi (near Puebla)

5. ©2013 Kansas City Southern Cross Border Shipments by Truck 2012 3.1 million truckloads originate or terminate in KCS’ Target Market 50 percent of loads move to/from locations deep into Mexico KCS operates the Laredo rail bridge on both sides of border The current KCS intermodal cross border market share represents about 2 percent of available market. 5 SOURCE: KCS Market Research derived from BTS Data

6. ©2013 Kansas City Southern 6 Mexico’s Natural Gas Potential

7. ©2013 Kansas City Southern Driving Success Integration of Cross Border Logistics and Trade 7

8. ©2013 Kansas City Southern 8 Fix the Cross-border Truck Process

9. ©2013 Kansas City Southern 9 Enforce Trucking Regulation in Mexico

10. ©2013 Kansas City Southern Automate the Customs Process 10

11. ©2013 Kansas City Southern 11 Impact of the Manual Customs Process Initial Finding: 37% of Northbound Intermodal shipments ramp same-day

12. ©2013 Kansas City Southern 12 Value of Re-engineering the Process

13. ©2013 Kansas City Southern 13

14. ©2013 Kansas City Southern Redefine Commercial Terms of Sale 14

15. ©2013 Kansas City Southern Identify and Centralize Extra Services 15

16. ©2013 Kansas City Southern Establish Proper Customs Broker Alignment 16

17. ©2013 Kansas City Southern Create Visibility to Border & Customs Costs 17 Bridge Dray Move Brokerage Commission Fees and Admin

18. ©2013 Kansas City Southern 18 ©2013 Kansas City Southern