Equity Research Me xico

CHDRAUI Quarterly Report July 25, 2019

www.banorte.com U.S. reported slightly above expectations @analisis_fundam

. We rate Chedraui’s 2Q19 report as positive, modestly beating our estimates, given a greater-than-expected expansion in Bodega Valentín Mendoza Latina’s profitability Auto Parts/ Consumer Discretionary / Real Estate/ Retail [email protected] . Revenue grew 13.0% yoy to MXN$31.5 billion, while EBITDA climbed 49.5% yoy to MXN$2.2 billion, mainly due to the IFRS 16 effect, yet rising 18.1% on an adjusted basis BUY Current Price $28.64 . After incorporating the new economic growth estimates and PT 2019 $39.00 Dividend 2019 assuming a more conservative approach in our valuation modelo, Dividend Yield (%) given local uncertainty, we lowered our PT2019 to MXN$39.00 Upside Potential 36.2% Max – Min LTM (MXN$) 49.38 – 28.64 Market Cap (US$m) 1,435.8 Solid expansion in El Súper and Fiesta Mart margins. Chedraui reported Shares Outstanding (m) 963.9 positive figures at the close of 2Q19, slightly beating our projections, given a Float 15.8% Daily Turnover (MXN$ m) 15.6 solid profitability expansion in U.S. operations -even when excluding the Valuation metrics TTM IFRS 16 effect-. Practically in line with our estimate, sales reached EV/EBITDA 7.8x MXN$31.5 billion, up 13.0% yoy, thanks to a 3.5% rally in consolidated SSS P/E 14.9x and the boost provided by a 7.1% sales floor area addition, after incorporating 33 stores. Meanwhile, gross margin improved 70bps year-on-year to 22.3%, as Relative performance to Mexbol higher profitability levels in Bodega Latina more than offset Mexico’s greater LTM 5% commercial aggressiveness, on account of the onset of the summer season. 0% -5% Thus, Chedraui’s gross profit grew 15.4%. In turn, expenses rose 11.5%, -10% -15% benefited by the accounting change effect of IFRS 16 (reporting +12.9% on an -20% -25% adjusted basis). Accordingly, EBITDA grew 49.5% to MXN$2.2 billion -30% -35% (+5.2% vs BNTe) and 18.1% when excluding such effect, mainly due to a -40% solid increase in the U.S. indicator. Finally, net profit fell 15.3%, pressured by -45% Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 a 140.8% increase in net interest expense. MEXBOL CHDRAUIB

Financial Statements Valuation and financial metrics M XN, million 2017 2018 2019E 2020E 2017 2018 2019E 2020E Rev enues 94,583 116,031 132,007 141,614 EV/EBITDA 5.3x 5.6x 6.8x 6.1x Operating Income 4,418 4,547 5,312 5,463 P/E 13.3x 13.4x 18.0x 15.5x

EBITDA 6,039 6,541 8,959 9,792 P/Book 1.0x 0.9x 1.0x 1.0x EBITDA Margin 6.4% 5.6% 6.8% 6.9%

Net Income 2,079 2,064 1,534 1,777 ROE 7.5% 7.1% 5.5% 6.6% Net Margin 2.2% 1.8% 1.2% 1.3% ROA 3.8% 3.0% 1.7% 2.0% EBITDA/ Interest ex penses 6.9x 6.9x 6.9x 6.9x

Total Assets 55,006 68,244 89,050 90,656 Net Debt/EBITDA 0.7x 1.4x 3.7x 3.3x Cash 1,522 1,252 1,237 1,725 Debt/Equity 0.2x 0.3x 1.3x 1.3x Total Liabilities 26,574 38,680 62,553 63,419

Debt 5,660 10,297 34,743 34,113 This document is provided for the reader’s convenience Common Equity 28,432 29,564 26,497 27,237 only. The translation from the original Spanish version was made by Banorte’s staff. Discrepancies may Source: Banorte with data from M SE possibly arise between the original document in Spanish and its English translation. For this reason, the original research paper in Spanish is the only official document. The Spanish version was released before the English translation. The original document entitled “EE.UU. ligeramente mejor de lo esperado” was released on July 1 25, 2019. Document for distribution among public

CHDRAUI – Results 2Q19 Revenue & EBITDA Margin MXN, million MXN, million Diff% vs Concept 2Q18 2Q19 Var % 2Q19e Estim. Revenue 27,942 31,586 13.0% 31,594 0.0% 7.4% Operating Income 1,078 1,389 28.8% 1,311 5.9% 40,000 7.3% 8% Ebitda 1,537 2,299 49.5% 2,186 5.2% 35,000 7% 5.5% 5.6% Net Income 500 423 -15.3% 358 18.2% 30,000 5.0% 6% Margins 25,000 5% Operating Margin 3.9% 4.4% 0.5pp 4.1% 0.2pp 20,000 4% Ebitda Margin 5.5% 7.3% 1.8pp 6.9% 0.4pp 15,000 3% Net Margin 1.8% 1.3% -0.4pp 1.1% 0.2pp 10,000 2% EPS $0.52 $0.44 -15.3% $0.37 18.2% Source: Banorte 5,000 1% 0 0% Income Statement (Million pesos) 2Q18 3Q18 4Q18 1Q19 2Q19 Year 2018 2019 2019 Change Change Revenue EBITDA Margin Quarter 2 1 2 % YoY % QoQ

Net Revenue 27,942.0 31,125.0 31,586.0 13.0% 1.5% Costs of goods sold 21,836.9 24,401.7 24,538.9 12.4% 0.6% Gross profit 6,105.1 6,723.2 7,047.1 15.4% 4.8% General expenses 5,035.7 5,303.7 5,612.7 11.5% 5.8% Net Income & ROE Operating Income 1,078.0 1,407.4 1,388.7 28.8% -1.3% MXN, million Operating Margin 3.9% 4.5% 4.4% 0.5pp (0.1pp) Depreciation 459.5 884.3 910.4 98.1% 3.0% EBITDA 1,537.5 2,291.7 2,299.1 49.5% 0.3% 600 7.4% 7.6% EBITDA Margin 5.5% 7.4% 7.3% 1.8pp (0.1pp) 7.3% Interest Income (Expense) net (312.7) (740.8) (753.0) 140.8% 1.6% 500 7.4% Interest expense 69.2 473.0 488.2 >500% 3.2% 400 7.2% Interest income 9.3 9.9 4.7 -49.8% -53.2% 7.0% 7.0% Other income (expense) (279.8) (292.4) (282.3) 0.9% -3.4% 300 7.0% Foreign exchange gain (loss) 27.0 14.7 12.8 -52.5% -12.9% 6.8% Unconsolidated subsidiaries N.A. N.A. 200 6.8% Income before taxes 765.3 666.7 635.8 -16.9% -4.6% 100 6.6% Income taxes 260.2 229.7 212.6 -18.3% -7.4% Discontinued operations N.A. N.A. 0 6.4% Consolidated Net Income 505.1 437.0 423.2 -16.2% -3.2% 2Q18 3Q18 4Q18 1Q19 2Q19 Non-controlling interest 5.3 2.9 0.0 -99.6% -99.3% Net Income ROE Net Income 499.8 434.1 423.1 -15.3% -2.5% Net Margin 1.8% 1.4% 1.3% (0.4pp) (0.1pp) EPS 0.519 0.450 0.439 -15.3% -2.5%

Balance Sheet (Million pesos) Total Current Assets 17,355.9 17,914.4 18,354.1 5.8% 2.5% Net Debt & Net debt to EBITDA ratio Cash & Short Term Investments 1,888.8 1,567.7 1,692.7 -10.4% 8.0% MXN, million Long Term Assets 46,152.9 69,773.3 69,842.4 51.3% 0.1% Property, Plant & Equipment (Net) 32,144.0 34,137.6 34,106.6 6.1% -0.1% 4.7x Intangible Assets (Net) 944.9 2,531.9 2,514.4 166.1% -0.7% 40,000 4.4x 5.0x Total Assets 63,508.8 87,687.7 88,196.5 38.9% 0.6% 35,000 4.0x Current Liabilities 20,097.4 23,410.3 24,392.8 21.4% 4.2% 30,000 Short Term Debt 354.6 3,687.5 5,325.6 >500% 44.4% 25,000 3.0x Accounts Payable 19,025.7 18,622.3 18,212.1 -4.3% -2.2% 20,000 Long Term Liabilities 14,195.9 36,707.5 36,396.7 156.4% -0.8% 15,000 1.4x 1.3x 1.4x 2.0x Long Term Debt 10,080.9 31,595.2 31,392.0 211.4% -0.6% 10,000 Total Liabilities 34,293.3 60,117.8 60,789.5 77.3% 1.1% 1.0x Common Stock 29,215.6 27,569.9 27,407.0 -6.2% -0.6% 5,000 Non-controlling interest 304.9 97.4 90.3 -70.4% -7.3% 0 0.0x Total Equity 28,910.7 27,472.5 27,316.7 -5.5% -0.6% 2Q18 3Q18 4Q18 1Q19 2Q19 Liabilities & Equity 63,508.8 87,687.7 88,196.5 38.9% 0.6% Net Debt 8,546.7 33,715.0 35,024.9 309.8% 3.9% Net Debt Net Debt to EBITDA

Cash Flow FX difference in cash & equivalents 381.4 (383.5) (29.3) CF from Operating Activities (5,235.3) (1,064.0) (641.4) CF from Investing Activities 4,783.7 1,781.7 593.3 CF from Financing Activities (288.8) (18.0) 202.4 Change in Cash Balance (358.9) 316.1 125.1

Source: Banorte, MSE.

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Revenue growth in line with expectations. Chedraui reported MXN$31.58 billion in revenue in 2Q19, equaling a 13.0% year-on-year growth- practically in line with our MXN$31.59 billion estimate. The factors that explain such performance are the following: (1) a 14.5% surge in Mexico’s revenue (MXN$18.5 billion), given a 5.1% increase in SSS- below Walmex-, in addition to 840bps from a 6.2% sales floor area expansion, after the net opening of 28 new stores in the LTM; (2) a 16.5% increase in U.S. sales. (and of +18.0% in local currency) to reach MXN$12.7 billion in the quarter, resulting from a 1.2% growth in LfL sales (in dollars), as well as from the contribution of 5 El Super locations and the effect of an additional month of Fiesta Mart’s sales vs 2018. Finally, real estate income rose 17.5% yoy to MXN$269 million tied to increased tenants’ sales and a 4.7% growth in gross leasable area (+17,149sqm yoy).

Solid performance in Bodega Latina’s gross margin offsets profitability pressures in Mexico. In 2Q19, Chedraui’s gross profitability expanded by 70bps to 22.3%, resulting from margin improvements in El Súper and Fiesta Mart. The latter more than offset such indicator’s pressure in Mexico, due to greater commercial aggressiveness on account of the onset of the summer season causing a “temporary impact on gross margin”, according to the company. Thus, gross profit grew 15.4%, above the increment reported from revenue.

EBITDA was boosted by the sharp growth reported in the U.S. The company’s EBITDA grew 49.5% yoy to MXN$2.2 billion during the period (+5.2% vs BNTe). Hence, EBITDA margin expanded by 180bps to 7.3%, as higher gross profitability was added to an 11.5% increase in operating expenses (below the sale’s growth pace). It should be noted that this performance is explained, to great extent, by the adoption of IFRS 16. However, even on an adjusted basis, profitability rose 30bps year-on-year, as a solid recovery in the results of Bodega Latina offset pressures of such indicator in Mexico. By region, the EBITDA margin in our country expanded by 20bps to 7.1% leading the indicator to rise 19.1% yoy to MXN$1.3 billion (-30bps and +6.3%, without considering the effect of accounting changes, as in addition to gross margin erosion, Chedraui faced pressures in expenses due to recent openings). Meanwhile, in the U.S. profitability saw a higher-than- expected recovery, expanding 200bps year-on-year, leading the corresponding margin to 6.1% and translating into a 190% EBITDA growth (+140bps and +50.2% on an adjusted basis), resulting from improvements in El Súper and in Fiesta Mart. Finally, it is worth highlighting that EBITDA from the real-estate division rose 27.5% to MXN$190 million, equaling a 230bps EBITDA margin expansion.

IFRS 16 strongly pressured net interest expense, impactad net profit. In terms of net income, Chedraui reported a MXN$423 million figure (-15.3% yoy), outperforming our MXN$358 million projection (+18.2% vs BNTe). Said decline is primarily explained by a 140.8% increase in net interest expense, given higher interest expenses on account of the accounting changes.

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Leverage drops. The company’s leverage fell to 4.4x ND/EBITDA from 4.7x in 1Q19. It should be mentioned that such change is explained by a greater generation of LTM EBITDA and a MXN$125 million qoq increase in cash, which offset a sequential increase in the company’s MXN$1.4 billion interest-bearing debt (mainly short-term).

We have revised our estimates. We have adjusted our projections model reflecting the effects of IFRS 16. In addition, we have incorporated the new economic growth forecasts estimated by our Economic Analysis department, as well as recent FX rate projections from our Strategy department.. Estimates

2020 2020 Δ% Δ% Δ% Δ% Δ% (actual) (anterior) SSS* 4.4% 4.8% -0.4% 5.5% 5.7% -0.2% Revenue+ 132,007 137,220 -3.8% 141,614 148,444 -4.6% EBITDA+ 8,959 7,737 +15.8% 9,792 8,576 +14.2% EBITDA 6.8% 5.6% +1.2% 6.9% 5.8% +1.1% Margin* Net Income+ 1,534 2,399 -36.1% 1,777 2,733 -35.0%

We have lowered our PT2019. We adopted a more conservative stance in our DCF valuation model. Therefore, we lowered our PT2019 to MXN$39.00 from MXN$49.00, which implies a 7.9x 2019E FV/EBITDA multiple, similar to the current level (7.8x), which equals a discount of nearly 20% against the median of global peers (9.9x 2019E), reflecting local uncertainty and a drop in confidence among investors towards the Mexican equity market in general. In view of the potential return against our PT, and the attractive valuation relative to Walmex and La Comer, we reiterate our BUY rating.

DISCOUNTED CASH FLOWS MODEL

2019e 2020e 2021e 2022e 2023e 2024e

(+) EBITDA 8,959 9,792 10,446 11,461 12,599 12,908 (-) Working Capital (1,150) 965 (3,379) (2,865) (3,150) (3,227) (-) Capex (4,344) (3,354) (4,839) (5,451) (6,231) (6,542) (-) Taxes (766) (909) (1,048) (2,292) (2,520) (2,582) (=) Cash Flow 2,698 6,494 1,180 852 699 557 (+) Perpetuity 0 0 0 0 0 103,261 (=) Total Cash Flow 2,698 6,494 1,180 852 699 103,818

YE19 Risk-free Rate (RF) 7.8% (+) Present Value of Cash Flow s 8,303 Equity Risk Premium (RM) 5.5% (+) Present Value of Perpetuity 63,177 Beta 0.9 = Enterprise Value 71,480 CAPM 12.8% (-) Net Debt (33,506) (-) Minorities (87) Cost of Debt 5.8% (+) Other Investments Tax Rate 30.0% (=) Equity Value 37,887 Net Cost of Debt 4.0% Shares Outstanding 964

Debt/Equity 27.8% Price Target MXN$ 39.30

WACC 10.3% Exit Multiple EV/EBITDA 8.0x Source: Banorte

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RELATIVE VALUATION Market Cap Enterprise Value EV/EBITDA EV/EBITDA DIVIDEND STOCK PRICE P/Book P/E P/E 2019E P/E 2020E EV/EBITDA (US$MM) (US$MM) 2019E 2020E YIELD

WALMART DE MEXICO SAB DE CV P$55.82 51,076 52,450 6.5x 25.7x 25.1x 22.9x 15.0x 13.9x 12.4x 1.5% ORGANIZACION SORIANA S.A.B-B P$20.68 1,950 3,346 0.6x 10.6x 11.3x 8.9x 6.6x 6.1x 5.3x LA COMER SAB DE CV P$23.43 1,194 1,120 1.1x 20.8x 26.0x 24.1x 12.4x 12.2x 10.0x

WALMART INC $112.00 319,729 388,814 4.7x 22.8x 23.0x 22.2x 11.1x 12.0x 11.7x 1.9% COSTCO WHOLESALE CORP $280.83 123,506 122,171 8.5x 34.5x 34.3x 32.8x 19.8x 19.2x 17.7x 0.9% TARGET CORP $89.09 45,644 58,948 4.1x 15.9x 15.1x 14.1x 8.6x 8.7x 8.5x 3.0% KONINKLIJKE AHOLD DELHAIZE N 20.38 € 26,862 29,959 1.6x 12.8x 12.4x 11.7x 5.4x 5.3x 5.2x 3.4% AEON CO LTD ¥1,887.50 15,217 35,028 1.5x 124.8x 58.1x 48.6x 8.0x 8.0x 7.6x 1.8% CARREFOUR SA 17.64 € 15,838 22,506 1.5x 15.2x 13.2x 8.9x 5.6x 5.2x 2.6% JERONIMO MARTINS 14.84 € 10,395 13,249 5.1x 24.7x 21.6x 19.8x 11.4x 11.5x 10.7x 2.2% SAINSBURY (J) PLC £203.20 5,606 6,786 0.6x 21.4x 9.9x 9.8x 4.9x 3.7x 3.7x 5.4% CENCOSUD SA CLP 1,397.00 5,794 11,489 1.0x 13.7x 18.0x 20.5x 8.2x 10.9x 11.0x 1.4% CIA BRASILEIRA DE DIS-PREF BRL 88.00 6,400 9,540 2.3x 17.8x 19.8x 17.3x 10.8x 10.9x 9.7x LOTTE SHOPPING CO KRW 139,000.00 3,333 13,435 0.3x 12.3x 10.2x 9.9x 9.6x 3.7% CASINO GUICHARD PERRACHON 33.12 € 3,999 17,289 0.7x 12.2x 9.8x 10.4x 8.0x 7.4x 4.7% AXFOOD AB SEK 200.90 4,471 5,071 13.3x 26.9x 26.0x 25.3x 17.7x 10.8x 10.6x 3.5% LENTA LTD-REG S RUB 3.44 1,678 3,153 0.3x 1.8x 9.1x 8.4x 5.5x 5.4x 5.2x

Average 37,806 46,727 3.2x 26.7x 21.1x 18.9x 10.3x 9.5x 8.9x 2.8% Median 6,400 13,435 1.5x 21.1x 18.9x 17.3x 10.2x 9.9x 9.6x 2.6%

GRUPO COMERCIAL CHEDRAUI SA P$28.64 1,434 3,235 1.0x 14.9x 18.0x 15.5x 7.8x 6.8x 6.1x 1.4% Premium/Discount vs Median -33.8% -29.3% -4.9% -10.3% -23.8% -31.0% -36.4% -1.2% Source: Banorte, Bloomberg -29.3% -4.9% -10.3% -23.8% -31.0% -36.4%

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Certification of Analysts. We, Gabriel Casillas Olvera, Delia Maria Paredes Mier, Alejandro Padilla Santana, Manuel Jiménez Zaldívar, Tania Abdul Massih Jacobo, Katia Celina Goya Ostos, Juan Carlos Alderete Macal, Víctor Hugo Cortes Castro, Marissa Garza Ostos, Miguel Alejandro Calvo Domínguez, Hugo Armando Gómez Solís, Gerardo Daniel Valle Trujillo, José Itzamna Espitia Hernández, Valentín III Mendoza Balderas, Santiago Leal Singer, Francisco José Flores Serrano and Leslie Thalía Orozco Vélez, certify that the points of view expressed in this document are a faithful reflection of our personal opinion on the company (s) or firm (s) within this report, along with its affiliates and/or securities issued. Moreover, we also state that we have not received, nor receive, or will receive compensation other than that of Grupo Financiero Banorte S.A.B. of C.V for the provision of our services.

Relevant statements. In accordance with current laws and internal procedures manuals, analysts are allowed to hold long or short positions in shares or securities issued by companies that are listed on the Mexican Stock Exchange and may be the subject of this report; nonetheless, equity analysts have to adhere to certain rules that regulate their participation in the market in order to prevent, among other things, the use of private information for their benefit and to avoid conflicts of interest. Analysts shall refrain from investing and holding transactions with securities or derivative instruments directly or through an intermediary person, with Securities subject to research reports, from 30 calendar days prior to the issuance date of the report in question, and up to 10 calendar days after its distribution date.

Compensation of Analysts.

Analysts’ compensation is based on activities and services that are aimed at benefiting the investment clients of Casa de Bolsa Banorte Ixe and its subsidiaries. Such compensation is determined based on the general profitability of the Brokerage House and the Financial Group and on the individual performance of each analyst. However, investors should note that analysts do not receive direct payment or compensation for any specific transaction in investment banking or in other business areas. Last-twelve-month activities of the business areas. Grupo Financiero Banorte S.A.B. de C.V., through its business areas, provides services that include, among others, those corresponding to investment banking and corporate banking, to a large number of companies in Mexico and abroad. It may have provided, is providing or, in the future, will provide a service such as those mentioned to the companies or firms that are the subject of this report. Casa de Bolsa Banorte or its affiliates receive compensation from such corporations in consideration of the aforementioned services.

Over the course of the last twelve months, Grupo Financiero Banorte S.A.B. C.V., has not obtained compensation for services rendered by the investment bank or by any of its other business areas of the following companies or their subsidiaries, some of which could be analyzed within this report.

Activities of the business areas during the next three months.

Casa de Bolsa Banorte, Grupo Financiero Banorte or its subsidiaries expect to receive or intend to obtain revenue from the services provided by investment banking or any other of its business areas, by issuers or their subsidiaries, some of which could be analyzed in this report. Securities holdings and other disclosures.

As of the end of last quarter, Grupo Financiero Banorte S.A.B. of C.V. has not held investments, directly or indirectly, in securities or derivative financial instruments, whose underlying securities are the subject of recommendations, representing 1% or more of its investment portfolio of outstanding securities or 1 % of the issuance or underlying of the securities issued.

None of the members of the Board of Grupo Financiero Banorte and Casa de Bolsa Banorte, along general managers and executives of an immediately below level, have any charges in the issuers that may be analyzed in this document.

The Analysts of Grupo Financiero Banorte S.A.B. of C.V. do not maintain direct investments or through an intermediary person, in the securities or derivative instruments object of this analysis report. Guide for investment recommendations.

Reference

BUY When the share expected performance is greater than the MEXBOL estimated performance. HOLD When the share expected performance is similar to the MEXBOL estimated performance. SELL When the share expected performance is lower than the MEXBOL estimated performance. Even though this document offers a general criterion of investment, we urge readers to seek advice from their own Consultants or Financial Advisors, in order to consider whether any of the values mentioned in this report are in line with their investment goals, risk and financial position.

Determination of Target Prices

For the calculation of estimated target prices for securities, analysts use a combination of methodologies generally accepted among financial analysts, including, but not limited to, multiples analysis, discounted cash flows, sum-of-the-parts or any other method that could be applicable in each specific case according to the current regulation. No guarantee can be given that the target prices calculated for the securities will be achieved by the analysts of Grupo Financiero Banorte S.A.B. C.V, since this depends on a large number of various endogenous and exogenous factors that affect the performance of the issuing company, the environment in which it performs, along with the influence of trends of the stock market, in which it is listed. Moreover, the investor must consider that the price of the securities or instruments can fluctuate against their interest and cause the partial and even total loss of the invested capital.

The information contained hereby has been obtained from sources that we consider to be reliable, but we make no representation as to its accuracy or completeness. The information, estimations and recommendations included in this document are valid as of the issue date, but are subject to modifications and changes without prior notice; Grupo Financiero Banorte S.A.B. of C.V. does not commit to communicate the changes and also to keep the content of this document updated. Grupo Financiero Banorte S.A.B. of C.V. takes no responsibility for any loss arising from the use of this report or its content. This document may not be photocopied, quoted, disclosed, used, or reproduced in whole or in part without prior written authorization from Grupo Financiero Banorte S.A.B. of C.V. History of PT and Ratings Stock Date Rating PT CHDRAUI B 24/7/2019 Buy $39.00 CHDRAUI B 25/2/2019 Buy $49.00 CHDRAUI B 28/9/2018 Buy $52.00

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GRUPO FINANCIERO BANORTE S.A.B. de C.V.

Research and Strategy

Gabriel Casillas Olvera Chief Economist and Head of Research [email protected] (55) 4433 - 4695

Raquel Vázquez Godinez Assistant [email protected] (55) 1670 - 2967

Economic Analysis

Delia María Paredes Mier Executive Director of Economic Analysis [email protected] (55) 5268 - 1694

Katia Celina Goya Ostos Senior, Global Economist [email protected] (55) 1670 - 1821 Juan Carlos Alderete Macal, CFA Senior Economist, Mexico [email protected] (55) 1103 - 4046 Miguel Alejandro Calvo Economist, Regional [email protected] (55) 1670 - 2220 Domínguez Francisco José Flores Serrano Economist, Mexico [email protected] (55) 1670 - 2957 Lourdes Calvo Fernández Analyst (Edition) [email protected] (55) 1103 - 4000 x 2611

Fixed income and FX Strategy

Alejandro Padilla Santana Head Strategist – Fixed income and FX [email protected] (55) 1103 - 4043 Santiago Leal Singer FX Senior Strategist [email protected] (55) 1670 - 2144

Leslie Thalía Orozco Vélez Fixed Income and FX Strategist [email protected] (55) 5268 - 1698

Equity Strategy

Director Equity Research — Manuel Jiménez Zaldivar [email protected] (55) 5268 - 1671 Telecommunications / Media Victor Hugo Cortes Castro Technical Analysis [email protected] (55) 1670 - 1800 Equity Research – Conglomerates / Financials/ Marissa Garza Ostos [email protected] (55) 1670 - 1719 Mining / Petrochemicals Equity Research – Airlines / Airports / Cement

José Itzamna Espitia Hernández [email protected] (55) 1670 - 2249 / Infrastructure / REITs Equity Research – Auto Parts/ Consumer Valentín III Mendoza Balderas [email protected] (55) 1670 - 2250 Discretionary / Real Estate / Retail Jorge Antonio Izquierdo Lobato Analyst [email protected] (55) 1670 - 1746 Itzel Martínez Rojas Analyst [email protected] (55) 1670 - 2251

Corporate Debt

Tania Abdul Massih Jacobo Director Corporate Debt [email protected] (55) 5268 - 1672

Hugo Armando Gómez Solís Senior, Corporate Debt [email protected] (55) 1670 - 2247 Gerardo Daniel Valle Trujillo Manager, Corporate Debt [email protected] (55) 1670 - 2248

Wholesale Banking

Armando Rodal Espinosa Head of Wholesale Banking [email protected] (55) 1670 - 1889 Alejandro Eric Faesi Puente Head of Global Markets and Institutional Sales [email protected] (55) 5268 - 1640 Alejandro Aguilar Ceballos Head of Asset Management [email protected] (55) 5268 - 9996 Head of Investment Banking and Structured Arturo Monroy Ballesteros [email protected] (55) 5004 - 1002 Finance Head of Transactional Banking, Leasing and Gerardo Zamora Nanez [email protected] (81) 8318 - 5071 Factoring Jorge de la Vega Grajales Head of Government Banking [email protected] (55) 5004 - 5121 Luis Pietrini Sheridan Head of Private Banking [email protected] (55) 5004 - 1453 René Gerardo Pimentel Ibarrola Head of Asset Management [email protected] (55) 5268 - 9004 Ricardo Velázquez Rodríguez Head of International Banking [email protected] (55) 5004 - 5279 Víctor Antonio Roldan Ferrer Head of Corporate Banking [email protected] (55) 5004 - 1454