Car Production. Brazil Mexico. Production in thousands. Source: AMIA Asociacion Mexicana de la industria automotriz.

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Car Production Production in thousands 4000 3000 2000 1000 Brazil Mexico 0 2013 2014 2015 Source: AMIA Asociacion Mexicana de la industria automotriz.

Mexico s Expanding Middle Class Percent of population in 2020, by income range 50 $5,000 15,000 40 30 20 < $5,000 10 $25,000 40,000 $40,000+ 0 Poor 2020 Affluent Source: BBVA. Notes: Income ranges are defined homogenously for all countries. Poor is up to $1,000 USD per year, low income is from $1,000 to $5,000 USD, low middle class is from $5,000 Source: Eurostat (EU27 projections) to $15,000 USD, medium middle class is from $15,000 to $25,000 USD. high middle class is from $25,000 to $40,000 USD, and affluent is over $40,000 USD.

Reforms are paying off 40.7% in international long distance rates 16.8% in mobile rates 16.8% in landline rates #MIGlobal Source: ProMéxico with information from the SHCP. Annual variation, December 2015. 3

Some Current Highlights: Engineering Graduates (1/2) Mexico is one of the leading countries in America in producing Engineers 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1.19 0.93 Engineering Graduates in 2015 (per 1,000 inhabitants) 0.75 0.73 0.37 Engineering Graduates in 2015 0.33 0.19 0.17 Chile Mexico United States Canada Brazil Argentina Guatemala Uruguay 250,000 237,826 200,000 150,000 100,000 113,944 74,539 50,000 0 25,722 21,037 13,603 2,943 590 United States Mexico Brazil Canada Chile Argentina Guatemala Uruguay #MIGlobal Source: Forbes, World Economic Forum.

Mexico s High-end Technology Trade $U.S. billions 70 60 50 40 30 20 10 0 Export to U.S. Export Rest of the World Import from U.S.

Mexico s Competitiveness: Industrial Activity A competitive manufacturing sector Industrial Activity by Sector (2008=100) 135 125 115 105 95 85 2008 2009 2010 2011 2012 2013 2014 2015 2016 Mining Electricity Construction Manufacturing Manufacturing Exports (Jan 2008=100) 250 230 210 190 170 150 130 110 90 70 50 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Manufacturing Automotive Other The manufacturing sector, particularly the automotive industry, has boosted industrial activity in Mexico since the 2009 crisis Despite global weaknesses, the manufacturing sector will remain competitive during the coming 5 years due to current investments and competitive unit labor costs Mining continues to weight heavily in the industrial activity in Mexico, because of the general decrease in commodity prices and due to the fact that three fourths are oil #MIGlobal Source: INEGI.

Mexico s Competitiveness: Manufacturing Comparison Change in manufacturing costs from 2004 to 2014, 25 largest exporters (index) Rising Global Stars Improvement or no change Reduction of 1 to 4 points Reduction of 5 to 9 points Reduction of 10 to 14 points Reduction of 15 or more points Countries not part of the 25 largest exporters Mexico and the US are the winners in competitiveness at the global level #MIGlobal Source: The Shifting Economics of Global Manufacturing, BCG (2014). The labor component is adjusted for productivity.

Active Ford Plants in North America Chicago Assembly Plant 1924 Kansas City, MO 1951 Oakville, Ontario 1953 Louisville Assembly Plant 1955 Michigan Assembly Plant 1957 Cuautitlan, Mexico 1964 Kentucky Truck Plant 1969 Ohio Assembly Plant 1974 Hermosillo, Mexico 1986 Flat Rock Assembly Plant 1987 Dearborn Truck Plant 2004 San Luis Potosi, Mexico 2018

Advanced Economies vs. Emerging and Developing Economies 65 60 55 50 Share of world GDP (%), based on purchasing power parity (PPP) Advanced Economies 45 40 35 30 Emerging & Developing Economies{ Latin America Africa Middle East Asia (excl. Japan) 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Source: International Monetary Fund.

Mexico s Competitiveness: Market Share/Lowering Costs relative to China US imports from selected countries (% of total) 6.1 11.2 12.5 17.0 Mexico China Canada 3.1 18.4 8.2 19.9 15.8 19.0 14.8 13.9 Japan 18.1 12.0 5.7 5.4 1990 2000 2014 2018 Average manufacturing unit labor cost in China and Mexico (USD per hour) China is losing competitiveness because of: an increase in wages larger than its productivity growth, derived from its demographics, higher transportation costs and the Yuan s appreciation #MIGlobal Source: Economist Intelligence Unit, US Department of Commerce. 1) Estimate based on Global Insight.

California s Changing Faces Population 2014 Blacks 2.5 million Asians 5.6 million Hispanics 15.0 million European 14.9 million Sources: Moody s, U.S. Census Bureau.

California s Changing Faces Population Growth (2000-2014) Black 6.5% Asian 45.0% Hispanics 35.6% European (7.0%) Sources: Moody s, U.S. Census Bureau.

Some Current Highlights: Tourism Million People 35 30 25 20 15 10 5 0 Number of International Tourists (left axis) and Revenues from International Tourists (right axis) 21.9 21.4 21.6 22.9 22.3 18.3 19.1 20.7 21.7 18.9 23.3 23.4 23.4 24.2 20.0 20.0 21.5 29.3 23.7 24.2 USD$ B 32.1 29.1 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 35 30 25 20 15 10 5 0 Top 10 Visited Countries in 2015 (millions) 31.6 32.1 33.9 35.0 39.3 50.8 56.9 68.1 77.9 86.3 2012 15 CAGR Russia 8.3% Mexico 11.1% UK 5.1% Germany 4.9% Turkey 3.4% Italy 3.1% China 0.0% Spain 5.9% USA 5.4% France 1.7% The number of international tourists visiting Mexico increased considerably since 2013, partly explained by the introduction of low cost carriers into Mexico Mexico is now the #9 tourist destination in the world and it is the one with the highest relative growth in visitors in the last 3 years #MIGlobal Source: World Tourism Organization.

Mexico s Population