Equity Research Me xico

NEMAK Company Note March 4, 2019

www.banorte.com Trimming estimates and PT; downgrading to sell @analisis_fundam

. We have trimmed our estimates, aligning to the company’s 2019 earnings guidance, in view of a weaker outlook for vehicle Valentín Mendoza production in all regions where the company operates Auto Parts/ Consumer Discretionary / Real Estate/ Retail [email protected] . We now believe volume will drop 5.4% yoy to 47.3 million units, while sales will fall 4.2% to US$4.5 billion, resulting in a 12.6% decline in EBITDA to US$643 million SELL Current Price MXN$13.83 . With that in mind, we have cut our PT2019 to MXN$13.00, implying PT 2019 MXN$13.00 Dividend 2019 P$1.1 a 5.6x 2019E FV/EBITDA multiple, similar to the 3-year average. We Dividend Yield (%) 7.9% are downgrading our rating on the stock to SELL Upside Potential 1.8% Max – Min LTM (P$) 16.48 – 13.02 Market Cap (US$m) 2,229.0 The outlook seems challenging in North America. We have incorporated Shares Outstanding (m) 3,079.9 the company’s 2019 earnings guidance into our earnings model, reflecting Float 19.24% Daily Turnover (P$ m) 25.5 lower vehicle production estimates in all regions. We must point out that IHS Valuation metrics TTM estimates a production of 16.776 million vehicles in NAFTA (-1.0% yoy and EV/EBITDA 6.0x -1.2% versus their previous estimate of 16.974 million), while anticipating a P/E 16.8x

0.8% drop of such metric in Europe (vs a previous +1.1%), as well as a lower growth in China (1.6% vs a previous +2.2%). Meanwhile, the market share Relative performance to Mexbol loss of the Detroit Three is evidenced by a slump in their estimated production LTM 20% (GM -2%; F -7%; and FCA -3%). In addition, Nemak’s high exposure to these 15% 10% OEMS, selling more than one piece per platform in most cases, will reflect in 5% an 8.5% yoy volume decline in NAFTA. It should be mentioned that in that 0% -5% region, the company has greater operating leverage, contributing with 61% of -10% -15% the consolidated EBITDA, so with the expected volume contraction, EBITDA -20% in that region could fall 17.4%, impacting the company’s consolidated results -25% feb-18 may-18 ago-18 nov-18

(EBITDA -12.6% to US$ 643 million). MEXBOL NEMAKA

Financial Statements Valuation and financial metrics M XN, million 2017 2018 2019E 2020E 2017 2018 2019E 2020E Rev enues 84,779 90,327 89,904 101,303 EV/EBITDA 6.2x 6.0x 7.0x 5.7x Operating Income 5,767 7,823 6,017 7,699 P/E 15.7x 16.8x 19.9x 13.5x

EBITDA 13,547 13,916 12,818 15,341 P/Book 1.5x 1.6x 1.7x 1.7x EBITDA Margin 16.0% 15.4% 14.3% 15.1%

Net Income 3,691 3,464 2,916 4,287 ROE 9.8% 9.3% 8.3% 12.7%

Net Margin 4.4% 3.8% 3.2% 4.2% ROA 3.8% 3.7% 3.0% 4.2% EBITDA/ Interest ex penses 9.0x 7.4x 8.4x 9.2x

Total Assets 96,690 93,258 96,092 102,576 Net Debt/EBITDA 1.9x 1.8x 2.5x 1.9x Cash 3,757 3,555 2,756 4,300 Debt/Equity 0.8x 0.8x 1.0x 1.0x Total Liabilities 58,267 57,154 61,728 69,170 This document is provided for the reader’s convenience Debt 29,461 29,187 34,194 34,161 only. The translation from the original Spanish version Common Equity 38,423 36,104 34,364 33,406 was made by Banorte’s staff. Discrepancies may possibly arise between the original document in Spanish Source: Banorte with data from M SE 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 “Recortamos estimados, recomendación y PO2019” was released on February 26, 2019. 1 Document for distribution among public

NEMAK–Financial Statements Revenue & EBITDA Margin MXN, million MXN, million Income Statement Year 2017 2018 2019E 2020E CAGR 18.7% 90,000 20.0% Net Revenue 84,779 90,327 89,904 101,303 5.9% 16.0% 88,000 15.4% 15.1% Cost of goods sold 71,812 76,878 76,600 86,294 5.9% 86,000 14.3% Gross profit 12,967 13,449 13,304 15,009 5.6% 15.0% 84,000 General expenses 5,818 5,746 7,287 7,310 12.8% 82,000 Operating Income 7,015 7,823 6,017 7,699 -0.8% 10.0% 80,000 Operating Margin 8.3% 8.7% 6.7% 7.6% Depreciation 6,320 6,166 6,800 7,642 11.3% 78,000 5.0% EBITDA 13,547 13,916 12,818 15,341 5.0% 76,000 74,000 EBITDA Margin 16.0% 15.4% 14.3% 15.1% Interest income (expense) net (1,900) (2,220) (2,011) (1,789) -10.2% 72,000 0.0% 2016 2017 2018 2019E 2020E Interest expense 1,497 1,883 1,525 1,672 -5.8% Interest income 74 93 138 120 13.5% Revenue EBITDA Margin Other income (expenses) 297 35 (133) (145) N/A Exchange Income (loss) (774) (465) (490) (92) -55.5% Unconsolidated subsidiaries 60 136 44 45 -42.4% Net Income before taxes 5,175 5,739 4,050 5,955 1.9% Provision for Income taxes 1,484 2,276 1,134 1,667 -14.4% Discontinued operations Net Income & ROE Consolidated Net Income 3,691 3,464 2,916 4,287 11.3% MXN, million Minorities N/A Net Income 3,691 3,464 2,916 4,287 11.3% Net Margin 4.4% 3.8% 3.2% 4.2% 14.6% 8.5% 6,000 12.8% 16.0% EPS 1.199 1.125 0.947 1.392 11.3% 14.0% 5,000 Balance Sheet (Million pesos) 9.6% 9.6% 12.0% 4,000 Total Current Assets 28,436 27,405 27,239 33,485 10.5% 10.0% Cash & Short Term Investments 3,757 3,555 2,756 4,300 10.0% 3,000 8.0% Long Term Assets 68,253 65,853 68,854 69,091 2.4% 6.0% Property, Plant & Equipment (Net) 52,274 51,629 54,630 54,867 3.1% 2,000 4.0% Intangible Assets (Net) 6,525 5,287 5,287 5,287 1,000 2.0% Total Assets 96,690 93,258 96,092 102,576 4.9% Current Liabilities 25,509 26,544 27,914 35,461 15.6% 0 0.0% 2016 2017 2018 2019E 2020E Short Term Debt 1,555 2,834 4,637 4,709 28.9% Accounts Payable 17,901 23,258 21,429 22,248 -2.2% Net Income ROE Long Term Liabilities 32,758 30,610 33,814 33,709 4.9% Long Term Debt 27,906 26,353 29,557 29,452 5.7% Total Liabilities 58,267 57,154 61,728 69,170 10.0% Common Stock 38,423 36,104 34,364 33,406 -3.8% Non-controlling interest Total Equity 38,423 36,104 34,364 33,406 -3.8% Net Debt & Net debt to EBITDA ratio Liabilities & Equity 96,690 93,258 96,092 102,576 4.9% MXN, million Net Debt 25,704 25,632 31,438 29,861 7.9%

Cash Flow (Million pesos) 2017 2018 2019E 2020E 35,000 3.0x Cash Flow from Operating Activities 2.5x before Taxes 11 (362) 30,000 2.5x 1.9x 1.9x Cash Flow from Operating Activities 14,362 13,814 8,131 14,746 25,000 1.8x 1.8x 2.0x Cash Flow from Investing Activities (8,263) (10,186) (6,248) (7,086) 20,000 Cash Flow from Financing Activities (5,014) (4,760) (2,682) (6,117) 1.5x Change in Cash Balance 1,096 (1,493) (799) 1,543 15,000

1.0x 10,000 5,000 0.5x 0 0.0x 2016 2017 2018 2019E 2020E

Net Debt Net Debt / EBITDA

Source: Banorte, MSE.

2

Lower vehicle production estimates. IHS, the most highly renowned forecasting company for the automotive industry, revised down its vehicle production forecasts in the three regions where Nemak operates. In comparison with December’s estimates- included in our previous figures-, the company now estimates the production of 16.776 million vehicles in NAFTA in 2019 (-1.0% yoy and -1.2% vs. the previous estimate of 16.974 million), while anticipating a 0.8% drop of such metric in Europe (vs. a previous +1.1%), as well as a lower growth in China (1.6% vs. a previous +2.2%) and only upgrading its estimates for Latin America to +6.4% from a previous +5.7%. Automotive Production Revision of automotive production estimates Millions of vehicles Millions of vehicles +1.6% -2.2% 30 27.277 30 -1.9% -0.8% 26.855 -1.0% 25 21.971 25 27.881 27.277 21.804 -1.2% 20 16.952 20 22.23 21.804 16.776 15 15 16.974 16.776 -1.3%

10 +6.4% 10 3.611 3.66 3.611 5 3.395 5

0 0 NAFTA Europe China Latam NAFTA Europe China Latam

Production 2018 Prod. 2019E (IHS-Feb19') Prod. 2019E (IHS-Dec18') Prod. 2019E (IHS-Feb19')

Source: IHS, Banorte

2019 Estimates.

We now expect Nemak’s volume to reach 47.3 million equivalent units in 2019, down 5.4% year-on-year in the consolidated indicator, resulting from an 8.5% contraction in numbers in North America, 0.5% in Europe, and 1.2% in the Rest of the World. The drop in North America would be explained by a sharp production decline of Ford (-7%), General Motors (-2%) and Fiat Chrysler (-3%), which shall exacerbate losses in Nemak due to the company’s high exposure to these three manufacturers, providing them with more than one piece per platform. As for Europe, a delay in the release of several platforms, as a result of new WLTP emission tests, may offset the start of production of several structural part contracts. In the case of aluminum, the Bloomberg consensus anticipates a 4.2% yoy depreciation in the average price of the base metal (against the 2018 average), standing at US$2027 per metric ton in 2019. However, a more favorable sales mix, added to the expected strengthening effect of the euro, should offset such outcome, driving the average price per unit 1.3% yoy to US$95, with which total revenue would stand at US$ 4.5 billion (-4.2% yoy). Further, a favorable 3.8% FX conversion effect on average, explained by our estimated depreciation of the USD/MXN pair towards $21.30 by year-end 2019, would help the indicator in pesos drop only 0.9% yoy to MXN 89.9 billion.

3

Meanwhile, at EBITDA level, we project a 130bps erosion in the corresponding margin, to stand at 14.3%. Consequently, EBITDA would drop 12.6% year-on-year to US$ 643 m (-7.9% in pesos to MXN 12.8 billion). Such performance would be attributed to the following: (1) lower operating leverage in North America resulting from a drop in production volume; and (2) higher energy prices in Europe. It should be mentioned that estimated depreciation of the USD/MXN pair would favor the company’s cost structure, partially offsetting these occurrences. Thus, EBITDA would fall 17.4% in NAFTA to US$ 369 million, 4.3% in Europe to US$ 249 million and stand at US$25 million in the Rest of the World. As for net income, we estimate a MXN$2.9 billion profit (-15.8% yoy), explained by the drop of the operating income, which would offset the positive effect of a 9.4% lower Net Income Expense and a lower tax effective rate (28%e vs 39.6% in 2018). Therefore, we expect the company to disburse US$320 million or MXN 6.3 billion in Capex (-20.6% yoy). Finally, we still believe the company may need around MXN$1.8 billion in short-term debt to finance working capital requirements, in addition to ~MXN 3.2 billion in long-term debt, elevating thus its leverage to 2.5x ND/EBITDA in 2019 from 1.8x.

Estimates in pesos 2019 2019 2020 2020 Δ% Δ% (actual) (previous) (actual) (previous) Volume* 47.3 51.2 -7.6% 48.8 51.5 -5.2% Sales+ 89,904 95,807 -6.2% 101,303 106,270 -4.7% EBITDA+ 12,818 15,317 -16.3% 15,341 17,942 -14.5% Margin 14.3% 16.0% -1.7% 15.1% 16.9% -1.8% Net profit+ 2,916 4,020 -27.5% 4,287 5,994 -28.5% *Millions of equivalent units +MXN

Estimates en US dollars 2015 2016 2017 2018 2019E 2020E Volume* 50.8 50.0 49.7 50.0 47.3 48.8 Revenue+ 4,480 4,258 4,482 4,704 4,508 4,724 EBITDA+ 759 798 715 735 643 715 EBITDA Margin 16.9% 18.7% 16.0% 15.6% 14.3% 15.1% EBITDA per unit 14.9 16.0 14.4 14.7 13.6 14.6 *Millions of equivalent units +US$m

Valuation and PT2019 at MXN$13.00

We have cut our PT2019 to MXN 13.00 per share, representing a 1.8% estimated total return (7.9%e for dividend), thus we have downgraded our rating to SELL. At this level, NEMAK would trade at 5.6x 2019E FV/EBITDA, standing between the current level and the average of the 12m forward multiple of the last three years (5.3x), and standing slightly above the median of comparable companies (5.0x). In our DCF valuation model, we used a WACC of 8.5%, which was estimated with a 0.7 Beta, a 9.0% Risk Free Rate (10-year Mexican bond estimate), a 5.5% market premium and the residual value was estimated using a 4.5x FV/EBITDA exit multiple, similar to the median of comparable peers.

4

DISCOUNTED CASH FLOWS MODEL (Figures in million pesos) 2019e 2020e 2021e 2022e 2023e 2024e (+) EBITDA 12,818 15,341 16,338 17,400 18,531 19,735 (-) Working Capital (3,078) (3,884) (2,777) (2,958) (3,150) (3,355) (-) Capex (6,386) (7,206) (7,710) (8,250) (8,827) (9,445) (-) Taxes (788) (2,882) (2,451) (2,610) (2,780) (2,960) (=) Free Cash Flow 2,566 1,369 3,400 3,582 3,774 3,975 (+) Perpetuity 0 0 0 0 0 89,599 (=) Total Free Cash Flow 2,566 1,369 3,400 3,582 3,774 93,573

YE19 Risk-free Rate (RF) 9.0% (+) Present Value of Cash Flow s 12,319 Equity Risk Premium (RM) 5.5% (+) Present Value of Perpetuity 59,581 Beta 0.7 = Enterprise Value 71,901 CAPM 12.7% (-) Net Debt (31,438) (-) Non-controlling Interest 0 Cost of Debt 4.6% (+) Other Investments 0 Tax Rate 30.0% (=) Equity Value 40,463 Net Cost of Debt 3.2% Shares Outstanding 3,079

Debt/ Capitalization 44.3% Price Target MXN$ 13.14 49400 WACC 8.5% Exit FV/EBITDA Multiple 4.5x Source: Banorte }

Nemak- FV/EBITDA forward 12m times 7.5x 7.0x 6.5x 6.0x 5.3x 5.5x 5.0x 4.5x 4.0x 02-16 08-16 02-17 08-17 02-18 08-18 02-19

Source: Bloomberg, Banorte

RELATIVE VALUATION FV/EBITDA FV/EBITDA DIVIDEND COMPANY P/BV P/E P/E 2018E P/E 2019E FV/EBITDA 2018E 2019E YIELD ALFA S.A.B.-A 1.5x 8.5x 9.8x 9.3x 4.9x 5.3x 5.1x 2.8% GRUPO KUO SAB DE CV-SER B 1.4x 15.0x 10.2x 9.2x 7.8x 1.8% GRUPO INDUSTRIAL SALTILLO 0.7x 5.7x 6.1x 5.0x 4.7x 4.5% RASSINI SAB DE CV - A 1.7x 8.4x 3.4x 3.0x 3.3x 2.8x 2.6x 7.4%

CONTINENTAL AG 1.7x 9.8x 10.1x 10.6x 5.1x 5.2x 5.1x 3.1% AISIN SEIKI CO LTD 0.9x 9.7x 10.1x 9.3x 4.5x 4.5x 4.1x FISCHER (GEORG)-REG 2.7x 13.2x 13.2x 12.6x 7.7x 7.7x 7.4x 2.8% RHEINMETALL AG 2.1x 14.5x 14.7x 13.6x 6.6x 6.3x 6.2x 1.8% LINAMAR CORP 1.0x 5.7x 5.9x 5.5x 4.7x 4.7x 4.5x 0.9% ELRINGKLINGER AG 0.5x 7.5x 8.4x 8.8x 5.5x 5.9x 6.0x AMERICAN AXLE & MFG HOLDINGS 1.2x 3.7x 5.6x 5.5x 8.1x 4.3x 4.3x KAISER ALUMINUM CORP 2.5x 19.5x 15.8x 14.7x 10.8x 9.1x 8.6x 2.1% CHONGQING LANDAI POWERTRAI-A 2.3x 40.0x 0.7% S&T MOTIV CO LTD 0.6x 8.7x 8.9x 7.9x 4.4x 3.5x 3.3x 3.4% MARTINREA INTERNATIONAL INC 0.9x 5.5x 5.4x 4.9x 3.7x 3.6x 3.5x 1.5% RYOBI LTD 0.8x 8.6x 11.9x 8.5x 4.0x 4.0x 2.5% TUPY SA 1.2x 10.7x 9.7x 5.6x 5.1x 4.6x CONSTELLIUM NV- CLASS A 8.5x 6.5x 5.2x 5.8x 5.2x TOWER INTERNATIONAL INC 1.8x 7.0x 9.4x 7.0x 4.9x 4.4x 3.9x 2.0% S&T DYNAMICS CO LTD 0.3x FEDERAL-MOGUL GOETZE INDIA 3.8x 30.4x 12.2x YUTAKA GIKEN CO LTD 0.4x 18.2x 1.6x 3.8%

Average 1.4x 12.6x 9.5x 8.6x 5.8x 5.2x 4.9x 2.7% Median 1.2x 8.7x 9.8x 8.8x 5.2x 5.0x 4.6x 2.5% NEMAK SAB DE CV 1.1x 16.8x 16.8x 19.9x 6.0x 6.0x 7.0x 8.3% Premium/Discount vs Median -20.4% 33.2% 76.3% 130.8% 2.9% 15.5% 43.2% Source: Bloomberg, Banorte 92.1% 71.4% 125.9% 16.5% 19.6% 51.1%

5

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, Francisco Duarte Alcocer 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 NEMAK A 25/02/2019 Sell $13.00 NEMAK A 14/01/2019 Buy $17.00 NEMAK A 18/04/2018 Buy $16.00 NEMAK A 14/02/2018 Hold $16.00

6

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 Francisco Duarte Alcocer Analyst, Global Economist [email protected] (55) 1103 - 4000 x 2707 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 Analyst, 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