© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. July 17, nd. IMMEX Outlook

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 22nd. IMMEX Outlook_Deloitte 2nd. IMMEX Outlook Introduction Considering the concentration of IMMEX companies in the border states of Mexico, Deloitte conducted the second study IMMEX with the objective to know professionals perspectives and expectations for this industry in Mexico Without a doubt, Mexico continues to be one of the world´s leading manufacturing countries Among the top 15 countries in America, according to the 2013 Global Manufacturing Competitiveness Index, published by Deloitte

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 32nd. IMMEX Outlook_Deloitte Survey applied during the last quarter of 2012 by and phone Baja California, Sonora and Chihuahua Topics of interest: Business climate Challenges, opportunities and value added NEEC Certification IMMEX Verification processes INFONAVIT Federal Law on Protection of Personal Data held by Private Parties and Individuals (LFPDPPP)

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 42nd. IMMEX Outlook_Deloitte Respondents Profile

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 52nd. IMMEX Outlook_Deloitte Company´s sector

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Origin of the company investment 62nd. IMMEX Outlook_Deloitte 57% of the respondents indicated that 2012 was better than 2011, 31% considered it was the same

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. How will the following concepts perform in 2013? (Country level) 72nd. IMMEX Outlook_Deloitte

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 82nd. IMMEX Outlook_Deloitte How would you rate the following concepts 2012 vs 2013?

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 92nd. IMMEX Outlook_Deloitte Value Added

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Challenges 102nd. IMMEX Outlook_Deloitte

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Opportunities A company registered as IMMEX has a series of tax operative advantages An IMMEX verification procedure allows the company to: Receive IETU (flat tax) tax credit Remain win the program 77% - Ok 14% are unaware of IMMEX verification procedures 23% of the respondents still have the opportunity to improve the efficiency of their processes and enjoy IMMEX benefits 112nd. IMMEX Outlook_Deloitte

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Opportunities Bimonthly Auditor´s Opinion for INFONAVIT (Bi-monthly-Bi-monthly audited): Goal: To provide benefits to employers who adhere to this program, which basically consist of waiver of the employer not to be notified with bonds of differences for the periods (bimonthly) audited. -Possibility to eliminate payment risk surcharges and interest 19% Indicated – No 122nd. IMMEX Outlook_Deloitte

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Opportunities Federal Law on Protection of Personal Data held by Private Parties and Individuals (LFPDPPP by its Spanish acroym) for IMMEX companies Published in the Mexico´s Federal Official Gazette on July 5, 2010 Individuals and entities must comply with the applicable provisions derived from this legislation It is important to keep in mind that the approaches of this law do not involve only the protection of data, but also a number of processes and procedures that support the exercise of rights of the information´s owners. 59% - No action 132nd. IMMEX Outlook_Deloitte

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Conclusions 142nd. IMMEX Outlook_Deloitte

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 152nd. IMMEX Outlook_Deloitte Conclusions of the study The scenario for 2012, according to the respondents, improved compared with For 2013, they considered a most favorable business climate. The U.S. economy, IMMEX competitiveness, the availability of credit, employment, were the most positive variables rated for 2013 While Mexico is still rated among the world top 15 countries for the manufacturing industry; still needs to work on areas of improvement to keep a competitive edge. ‒ Innovation ‒ Taxes ‒ Cost of raw materials ‒ Market attraction

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 162nd. IMMEX Outlook_Deloitte Conclusions of the study The main challenge for IMMEX companies was related to the cost of raw material and suppliers; secondly, the constant changes in international trade and customs and tax regulations. Value added strategies: 1. Cost reduction strategies 3. NEEC Certification 2. Applying human capital development plan IMSS compliance requires vast amounts of information -Option - Outsource functions Areas of opportunities: 23% could improve the efficiency of their IMMEX program 59% could start taken preventive actions related to the implications of the Federal Law on Protection of Personal Data held by Private Parties and Individuals Obtaining funds for R&D was not considered among the top three alternatives for value added strategies for IMMEX, though this is one key factor for innovation and competitiveness

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. More information Hector Silva Tax Manager Deloitte Kenia Albarran Marketing Manager Deloitte iTunes Store / Podcasts / Deloitte / Border Link Mexico 172nd. IMMEX Outlook_Deloitte

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Thanks 182nd. IMMEX Outlook_Deloitte

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Deloitte se refiere a Deloitte Touche Tohmatsu Limited, sociedad privada de responsabilidad limitada en el Reino Unido, y a su red de firmas miembro, cada una de ellas como una entidad legal única e independiente. Conozca en la descripción detallada de la estructura legal de Deloitte Touche Tohmatsu Limited y sus firmas miembro. Deloitte presta servicios profesionales de auditoría, impuestos, consultoría y asesoría financiera, a clientes públicos y privados de diversas industrias. Con una red global de firmas miembro en más de 150 países, Deloitte brinda capacidades de clase mundial y servicio de alta calidad a sus clientes, aportando la experiencia necesaria para hacer frente a los retos más complejos de los negocios. Cuenta con alrededor de 200,000 profesionales, todos comprometidos a ser el modelo de excelencia. Tal y como se usa en este documento, “Deloitte” significa Galaz, Yamazaki, Ruiz Urquiza, S.C., la cual tiene el derecho legal exclusivo de involucrarse en, y limita sus negocios a, la prestación de servicios de auditoría, consultoría fiscal, asesoría financiera y otros servicios profesionales en México, bajo el nombre de “Deloitte”. Esta publicación es únicamente para distribución y uso interno del personal de Deloitte Touche Tohmatsu Limited, sus firmas miembro y sus respectivas afiliadas (en conjunto la “Red Deloitte”). Ninguna entidad de la Red Deloitte será responsable de la pérdida que pueda sufrir cualquier persona que consulte esta publicación.