1. Guillermo Ortiz June 12, 2015

2. IMF 2015 Growth Forecasts % Disappointing Global Economic Growth Source: IMF *WEO five-year-ahead growth forecasts Output Compared to Precrisis Expectations Index, 2007=100 Medium-term Growth Expectations* % 1

3. Divergent Monetary Policies Create Distortions Source: IIF, Bloomberg, Banorte-Ixe AE Central Banks Interest Rates % Trends in Official Policy Rates % Sovereign Bond Yields in Local Currency % as of May 29, 2015 1Y2Y5Y10Y20Y30Y US*0.250.601.472.092.472.85 UK0.480.511.341.812.382.54 Switzerland-0.97-0.96-0.55-0.080.340.53 Germany-0.25-0.230.000.490.941.11 France-0.18 0.150.791.321.58 Spain0.02 0.781.832.712.85 Portugal0.020.111.312.553.283.43 Greece*11.4722.9515.1011.069.19n.a. * With linear interpolation in some nodes as the benchmark bond is not currently outstanding. 2

4. Greek's Bonds Maturing in 2015 Billion, Euro Brent and WTI Prices $/barrel Lower Oil Prices and Geopolitical Tensions Source: Bloomberg, Banorte-Ixe 3

5. Mexico and Latin America GDP per capita relative to the US %, GDP per capita in 1990 US$* Source: Conference Board Total Economy Database * converted at Geary-Khamis Methodology (1970), Sample of 17 countries, the region was calculated as population-weighted averages Mexico's Economic Convergence  1950-1970s: Strong period of growth.  1980s: "The lost Decade"  1990-2012:  NAFTA Agreement  94 Financial Crisis  Strengthening of macro fundamentals  China joined the WTO (2001)  2013-… Structural reforms 4

6. 6 Range in Regional GDP per Worker % of national average 2010 Source: OECD, Regions at a Glance 2013 Regional GDP Growth: 1995-2010 % annual average growth rate (constant 2005 USD PPP) Regional Productivity Differentiation Higher than 10% Between 7% and 10% Between 3.5 and 7% Between 1.5% and 3.5% Between 0% and 1.5% Lower than 0% Data no available 5

7. 7 Strong Macroeconomic Fundamentals Fiscal Deficit % of GDP 2014 Source: Banorte-Ixe, IMF, CNBV, Banxico, Ministry of Finance Capitalization Index for Commercial Banking % International Reserves and IMF's FCL USD billion Flexible Credit Line International Reserves Net Public Sector Debt % of GDP (LHS), years (RHS) International Reserves 6

8. 8 The Result of Stronger Fundamentals Exchange rate, CPI Inflation and Interest Rate %, USD/MXN Source: Banxico 7

9. 9 No External Imbalances and Resilience Against Shocks External Accounts Indicators External Debt* Short-term External Debt* Current Account FDI 2013 % GDP % Reserves % GDP USD b USD b Brazil21.82.514.4-4.2-90.980.8 India23.45.035.6-1.6-34.028.2 Indonesia29.88.968.0-2.9-25.023.3 South Africa 44.09.679.3-5.6-19.78.1 Turkey46.715.8113.2-5.5-44.912.9 Mexico20.13.120.3-2.0-25.844.1 Source: Bloomberg, Banorte-Ixe, JP Morgan, World Bank, Promexico * Considering public and private external debt Exchange Rate Index, may 2013=100 8

10. 10 Current Account Deficit and Inflation Relative to Target EM Internal and External Balance Scores Source: Goldman Sachs Global Investment Research 9

11. 11 Mexico's Strong Trade Patterns Mexican Exports by Main Destination % Source: WTO, Banorte Ixe *Estimations after 2008 Latin America's Exports by Merchandise % of total exports 10

12. 12 Wage Differential* USD, wages per hour Source: WTO, ILO, US Census Bureau, Banxico, Bloomberg Banorte Ixe *Estimations after 2008 Participation in US Imports % of total imports Higher External Competitiveness 11

13. 13 Capacity to Produce Advanced Manufacturing Mexican Light Vehicle Production Millions of Units  For Export Purposes  Domestic Sales Aerospace Companies established in Mexico # Source: ProMéxico, Banorte-Ixe, OECD **Data until 3Q2014, * FDI Forecast Mexican IT Industry Exports %, growth YoY Foreign Direct Investment $, Billions 20082009201020112012201320142015* 2008- 2014** FDI 28.718.025.923.618.944.122.528.4181.1 Engineering Graduates MexicoGermany In 2012 95,83273,536 12

15. 15 Structural Reform 1993 1997 2000 2006 2007 2012 2013 NAFTASiefores/Afores Budget & fiscal responsibility lawPublic pension system reform Economic competition lawGovernment accounting reformPenal Procedures Reform Education reform Banxico’s autonomy Injunction ActFiscal reform Bank-Lending reformEnergy reform Labor Market reform Telecommunications reform Electoral reform 14

17. Population that finished upper-secondary school (%, share of total, ages 25-64) Education Reform Poor education performance Source: OECD Education at a Glance 2012 36Mexico 53 Mexico Chile 16

18. Public spending on education (% GDP) Education Reform: It is not a matter of public spending… Source: OECD Education at a Glance 2012 Undereducated Population indicators for OECD countries  The Teachers' Union strongly influences the expenditure on education. 13% of all people registered on the schools’ payroll do not turn up to work. Among OECD countries, Mexico spends the second highest amount of current expenditure to compensate staff (91.7%). Brazil Argentina Mexico 5.0 4.4 Chile 17

19. 19 Bank-Lending Reform Bank Penetration % of GDP Mexico: Companies with credit in 2012* % of total Source: National Council of Financial Inclusion (2013), Banorte-Ixe, World Bank, Banxico Objetive: Increase bank penetration in Mexico aiming to achieve the democratization of high productivity among companies and facilitate consumption smoothing for individuals from all social levels Main points: Improve enforcing contracts processes for commercial banks, SME guarantees programs for Development banks and non-bank banks regulation Bank penetration in Mexico % GDP 18

22. 22 CPI, Phone, Cable TV, Internet Sub-indexes % annually Reforms are Starting to Work  Lower phone tariffs.  AT&T purchased Nextel and Iusacell.  Televisa internet and phone service for less than USD$30.  Telmex new internet and phone scheme of USD$22. Positive Consequences 21

24. 24 The Economy is Recovering: External Demand and Consumption Source: Banorte-Ixe, INEGI Industrial Production % annually Retail Sales % annually, 3mma Manufacturing Construction Production % annually 23

25. 25 What to Expect in 2015 Inflation forecast %yoy Mexico 2015 GDP forecast %yoy Source: Banorte-Ixe, INEGI 24

26. 26 Conclusions  The global context appears to be less supportive than in the past, with lower global growth forecasts.  Mexico has been able to strengthen macroeconomic fundamentals, which has improved the country's resilience against shocks.  Mexico has developed significant trade competitiveness.  The next step is to increase productivity and eliminate the “dual” economy.  Therefore moving forward with the structural reform agenda is fundamental.  In addition, the next most important reform is to strengthen the "Rule of Law"  The economy is starting to recover driven by the external demand and domestic consumption.  The outlook for the Mexican economy seems promising for 2015 and for the longer run. 25