Mexico KPIs - May 2017

Get an overview of the main financial indicators of the Mexican economy for the March - May 2017 period.

1. Key Mexico Statistics March – May 2017 Nuricumbo + Partners Audit • Finance • Risk • Strategy • Business Development

2. Outline Country Risk Stock Exchange Securities Market 1 2 3 4 Exchange Rates Inflation Rate 5 Investment Unit (UDI) 6 Economic Confidence Indicator (IMCE) 7 International Reserves 8 Our Value Proposition Success Case Studies Featured Podcast 1 2 3 4 Who we are Knowledge Sharing 5 Business News 6 Your Mexico Team 7 Contact Information 8 Mexico Economic Overview Our Service Portfolio

3. Note: Mexican Pesos per Currency Source: Mexican Central Bank, www.banxico.org.mx , 2017 31/05/17 $20.9590 March April May 31/03/17 $20.0745 28/04/17 $ 20.7397 30/05/17 $13.8427 March April May 30/03/17 $ 14.0568 27/04/17 $ 13.9801 31/05/17 $18.6909 March April May 31/03/17 $ 18.7955 28/04/17 $ 18.9594 31/05/17 $23.9963 March April May 31/03/17 $ 23.4051 28/04/17 $ 24.5363 Exchange Rates

4. The Country Risk indicates the possibilities of an emerging country failing to fulfill its obligations over external debt payments, whether for capital or interest. The higher the Country Risk, the larger the possibility of default. It is composed of three main sources: Sovereign Risk Transfer Risk Generic Risk It is measured through the use of the Emerging Markets Bond Index (EMBI) created by J.P. Morgan Chase. Source: www.economia.com.mx , 2017 Note: Basis points Country Risk

5. Source: Mexican Stock Exchange (BMV), http://www.bmv.com.mx/ , 2017 The Mexican Stock Exchange (BMV) is a public institution that operates under a concession granted by the Ministry of Finance (SHCP), observing the Mexican Securities Law.   Its shareholders are authorized brokerage firms, which each own one share. Its broad market indicator is known as “ Indice de Precios y Cotizaciones ” ( IPC ). Marketable Securities Capitals Market (Stocks, Fibras ) Capital Development Market ( CKDes ) Debt Market (Government, Short, Medium and Long Term Debt). Mexican Stock Exchange

6. Source: Mexican Central Bank, www.banxico.org.mx , 2017 Mexico’s Central Bank ( Banxico ) carries out operations in the securities market in order to regulate the liquidity of Mexico’s financial system. It also undertakes primary auctions of securities for the government and other public sector entities, and issues regulations on several financial operations of financial intermediaries. Cetes 28 Zero coupon bonds denominated in Mexican Pesos issued by the Mexican Government. The instrument due in 28 days is a common reference. Securities Market

7. Source: Mexican Central Bank, www.banxico.org.mx , 2017 Inflation can be defined as a continuous and widespread increase in goods and services prices. The Consumer Price Index (CPI) is the statistical instrument that calculates inflation by continuously measuring the price changes of households’ representative basket of goods and services. Inflation Rate

8. Source: Mexican Central Bank, www.banxico.org.mx and Ministry of Finance, www.sat.gob.mx , 2017 The Investment Unit ( Unidad de Inversion, UDI ) is a value unit linked to the overall movement of prices. It is commonly used in financial operations or investment instruments that are required to guarantee a return above inflation. The Mexican Central Bank is the responsible authority to publish its value in Mexican Pesos for each day of the month . Investment Unit (UDI)

9. Source: Public Accountants Mexican Association, IMCP, http://imcp.org.mx/ , 2017 The Mexican Economic Confidence Index, IMCE, is an indicator which aims to quantify the expectation of the perceived business climate through the perception of more than 20,000 registered public accountants of nearly 60 colleges affiliated to Public Accountants Mexican Institute, IMCP. The indicator is divided into two main components, which presents the current perception in the business climate as well as the perspective in six months. Its score is measured through a range of 0 to 140 points. Higher values represent higher optimism. Economic Confidence Indicator (IMCE)

10. Source: Mexican Central Bank, www.banxico.org.mx , 2017 Known as financial assets invested abroad by the Mexican Central Bank that can easily be converted into means of payment. According to the Mexican Central Bank, the following are considered as International Reserves: Foreign bank notes and coins; Deposits, securities and stocks payable outside of Mexico; Loans by Central Banks payable at no longer than six months; The Special Drawing Rights at the International Monetary Fund. International Reserves

11. Our Service Portfolio Nuricumbo + Partners Audit • Finance • Risk • Strategy • Business Development

12. INNOVATIVE CONSULTING FIRM FOUNDED IN 2004 BY TOP LEADERS IN THE MANAGEMENT CONSULTING SPACE. 8 practice leaders; more than 25 multi-disciplinary consultants. Areas of expertise include Audit, Finance, Compliance, Due Diligence, Process Improvement, Strategic Management, and Financial Transformation. Based in Mexico City, but flexible to take consulting projects around the world. Leaders in the implementation of the most modern trends in talent management for companies of all sizes. We are Nuricumbo + Partners

13. CONSULTING POWER THAT CAN BE AVAILABLE FOR THE TIME STRICTLY REQUIRED BY YOUR PROJECT, WITHOUT ANY LONG TERM COMMITMENTS, AND WITH HIGH LEVELS OF FLEXIBILITY. All our practice leaders are senior level executives with experience in multinational corporations and in several functional roles. Our consultants get the job done at the same time that they become agents of change for our clients, bringing a fresh perspective into problem-solving and sharing past experiences and best practices. Capable of creating value since the very first day; low learning curve. Our Value Proposition

14. WE CREATE VALUE TO CLIENTS UNDER THE FOLLOWING ENGAGEMENT MODELS: INDEPENDENT ASSESSMENTS We provide an independent point of view of the current state, identify strategic alternatives, and support Management in the implementation of the actions required to reach the desired state. TEMPORARY STRATEGIC SUPPORT We provide a senior consultant or a team of consultants who work full-time as implants with Senior Management, taking on special projects, confidential initiatives, and providing additional bandwidth to progress quickly, without having to distract resources from valuable day-to-day operations. PAY-AS-YOU-GO CONSULTING Our team of consultants can provide strategic, actionable, immediate advice on specific matters, and on a very flexible basis, before you decide to launch a project or initiative with a more defined scope. Our Lines of Service

15. WE ARE STRATEGIC PARTNERS IN THE IMPLEMENTATION OF NEW TRENDS AND MODELS RELATED TO TALENT MANAGEMENT. We can help you build your contingent workforce capabilities , and transform fixed costs into variable ones. We can help you build your talent foundation for the future , engaging strategic talent right out of university . We can help you implement in-house leadership training and talent development programs . We can help you apply the latest tools in talent assessment , and build functional teams that operate with excellence . Talent Management for the Future

16. Success Case Study CLIENT: CONTEXT: OUR INTERVENTION: RESULTS: U.S.-based multinational, member of the Fortune 100, large player in the financial services industry, with long-term presence in Mexico. The CFO of the Company required a consultant that could play the role of a hands-on trusted business advisor and take care of special projects and initiatives that could not be handled by the regular Finance staff, whether because of the confidential nature of the task, or because of the level of specialization and experience required, or simply not to take focus away from the day to day operations. After several discussions with the CFO, we provided three of our best Finance consultants for interview in order to select the one that was considered best fit. We provided internal training to our consultant in order to get him up to speed on certain particularities of the industry, and also organized a half-day introductory session with the client for that same purpose. In less than two weeks from our first conversation, our consultant was up-and-running and supporting the CFO on the tasks required. Our consultant became an integral part of the Finance team, helping the CFO to progress more quickly on special projects without having to divert much time from the people in charge of daily operations. Our consultant has been with the Client for six years, and in that time has played many different roles, from back fill to the CFO during holidays or sick time, to immediate replacement of a key manager that left suddenly, to Lead Project Manager of a complex Peoplesoft implementation. Our consultant today is a resource that can be deployed with full flexibility to resolve a wide variety of key pressing issues.

17. Featured Podcast Corporate leadership: The war for talent To buy or build the next boss? The changes of regime at General Electric and Uber highlight the shifts we are seeing in how companies choose their senior executives, says Andrew Hill. GE has always meticulously groomed its leaders in house and had John Flannery primed ready to take over when Jeff Immelt stood down. But that model is becoming rare. https :// goo.gl/wVtKJy

18. Knowledge Sharing How Audit Methodologies will Change in the Future Alan W. Anderson, CPA, founder of ACCOUNTability Plus LLC, believes the question to ask isn’t “What is the audit firm of the future?” but “What is going to be audited in the future?” https:// goo.gl/EBdBp4 The Decline of the Baronial CEO Corporate giants once had all-powerful chiefs with domains to match. But activists investors and technological change are remaking the executive suite . https:// goo.gl/L3zjxS Amazon and Uber are proof that Leadership still matters The different paths of Jeff Bezos and Travis Kalanick in the past few days show that the harsh commercial world, in this case, has celebrated the good guy and punished the bad . https:// goo.gl/rcxBqB Technology Will Force Tax Managers to Up Their Game As automation inevitably takes over technical tax work, tax professionals will be challenged to develop new skills in order to provide business value. https :// goo.gl/TnzVIW

19. Knowledge Sharing PCAOB expands Auditors’ Reporting Duties Reports prepared by public company auditors will contain more information for investors and other financial statement users as a result of new rules approved Thursday by the PCAOB during an open meeting in Washington . https:// goo.gl/RcKCmu Four Keys to Realizing Post-Merger Synergies 'Clean teams,' performance tracking, and other ways to ensure as a buyer you capture all of a deal's value . https:// goo.gl/YbOsYd PCAOB OKs First Big Change to Audit Report in 70 Years Worrisome matters reported by an auditor to a board audit committee would be disclosed in the auditor’s report under a new standard approved Thursday morning by the Public Company Accounting Oversight Board . https:// goo.gl/KGJ1zP CFOs Still Spurning High-Return Projects Despite the overall lower cost of capital, the hurdle rates companies use to screen investments are still 'stubbornly high . ‘ https:// goo.gl/RkbkmW

20. Business News Bezos's Grocery 'Waterloo' Is Now His Biggest Opportunity Two years ago, speaking at a conference table at his offices in Austin, Texas, Whole Foods Market Inc. founder and then co-Chief Executive Officer John Mackey predicted imminent doom for rival Amazon.com Inc. in the fiercely competitive grocery business. https:// goo.gl/KyvjcG German economy is responsible for 4.8 million jobs in the EU Germany has recently been criticized for its large trade surplus. Ever since Donald Trump took up the topic, businesses have been worried. Now a new study takes on these accusations . https:// goo.gl/R6aJu7 US interest rates up for second time this year The Federal Reserve has announced the second interest rate hike this year, lifting it by 0.25 percent to 1-1.25 percent. That's the highest level since 2008, when rates were cut in the wake of the financial crisis . https:// goo.gl/iEp2nf Brazil's President Vows to Sue JBS Owner Over `Criminal' Label The public battle between Brazil President Michel Temer and the world’s largest meat producer sharpened when JBS SA owner Joesley Batista was quoted as saying Temer heads the country’s “largest and most dangerous criminal organization .” https:// goo.gl/LcSxKE

21. Your Mexico Team Coming soon… Next month you will find a catalog showcasing our available consultants who are ready to support your strategic projects and initiatives . Stay tuned!

22. Let’s talk! WE ARE READY TO HELP WITH YOUR MOST PRESSING BUSINESS PRIORITIES. We can help you identify valuable options in the resolution of key challenges. Let’s schedule a call or meeting at your convenience. Our greatest objective is to help you resolve complex business problems!

23. E-mail : [email protected] Facebook/LinkedIn Messenger: armando.nuricumbo Twitter: @a_nuricumbo Skype : nuricua Mobile/Whatsapp : + 52 (155 ) 5453 6309 Contact Information