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Our Newsletter. Mexico & Latin America. January 2020.

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We help companies to be successful in Mexico & Latam via highly personalized and cost-effective consulting services. Areas of expertise include interim management, CFO/controller roles, special audits, fraud investigations, anti-corruption initiatives, internal control assessments, financial reporting, project management, risk management, strategic planning, financial transformations and turnarounds. On the commercial side, public relations, business development, contract negotiations, communications, social media, and design and execution of commercial strategy.

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Our Newsletter. Mexico & Latin America. January 2020.

  1. 1. LATIN AMERICA UPDATE January 2020 www.nuricumbo.com
  2. 2. Uber’s departure from Colombia sparks debate over app regulation Ride-hailing applications claim the recent court ruling against Uber has highlighted the need for their overdue regulation. Colombia’s Superintendence of Industry and Commerce ruled last week that the multinational ride-hailing app Uber is operating “unfairly,” forcing it to cease operations in the country. The court’s decision means that on February 1, Colombia will become the first country in Latin America to lose access to Uber, although the food delivery platform UberEats will continue to operate. The lawsuit against Uber was originally filed by the Colombian taxi union Cotech, which had been campaigning against Uber for years. Cotech claimed that the app was “dishonestly” diverting customers away from hailing the nation’s trusty yellow cabs, giving Uber drivers an “illegal” competitive advantage. According to the BBC, President Ivan Duque’s government has supported the court’s decision. Uber, which has also faced legal challenges in Mexico, Brazil and Argentina as well as Europe, the United States, Australia and India, described the court’s ruling as “surprising” and “arbitrary.” https://latinamericareports.com/ubers-departure-from-colombia-sparks-debate-over-transport-app-regulation/4126/
  3. 3. $4.02 $4.24 $4.02 $0.00 $1.50 $3.00 $4.50 October November December Brazil $59.65 $59.91 $59.87 $0.00 $20.00 $40.00 $60.00 October November December Argentina Exchange Rates $3,380.29 $3,517.05 $3,287.23 $0.00 $1,500.00 $3,000.00 $4,500.00 October November December Colombia $19.23 $19.53 $18.93 $0.00 $10.00 $20.00 $30.00 October November December Mexico $3.34 $3.40 $3.31 $0.00 $1.00 $2.00 $3.00 $4.00 October November December Peru Source: Bloomberg, 2019. *USD / PEN *USD / MXN *USD / CLP*USD / ARS *USD / BRL *USD / COP $741.36 $778.79 $752.87 $0.00 $200.00 $400.00 $600.00 October November December Chile *USD / CLP
  4. 4. 34,995.20 34,500.21 41,671.41 0 12,000 24,000 36,000 48,000 October November December Argentina Capital Markets 107,219.80 108,233.30 115,645.30 0 30,000 60,000 90,000 120,000 October November December Brazil 1,633.15 1,611.92 1,662.42 0 500 1,000 1,500 2,000 October November December Colombia 19,904.87 20,078.00 20,526.13 0 7,000 14,000 21,000 28,000 October November December Peru 43,337.28 42,820.18 43,541.02 0 15,000 30,000 45,000 60,000 October November December Mexico 4,744.13 4,538.80 4,669.85 0 1,200 2,400 3,600 4,800 October November December Chile *IPSA:IND *MEXBOL:IND *SPBLPGPT:IND *MERVAL:IND *IBOV:IND *COLCAP:IND Source: Bloomberg, 2019.
  5. 5. Land Area Source: The World Bank, 2018. 2,736,690 8,358,140 1,109,500 743,532 1,943,950 1,280,000 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 Argentina Brazil Colombia Chile Mexico Peru Note: Kilometers
  6. 6. Ease of Doing Business Index 126 124 67 59 60 76 0 20 40 60 80 100 120 140 Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2019. Note: 1 = Most Business-friendly Regulations
  7. 7. Internal Audit Support For more information, please visit our website or email us at contacto@nuricumbo.com 7 We can enhance your audit projects in Mexico, Latin America, or anywhere else. Talent Mobility Flexibility Capabilities Our consultants can travel in Mexico, in Latin America, or basically anywhere you need them. We have delivered audit projects in more than 25 countries around the world. Worldwide Mobility We have a multidisciplinary approach, combining specialists in internal controls, forensics, IT, business intelligence, process automation and compliance. We have an internal quality function to ensure objectives are always met. The result is a powerful combination of skills that allows us to deliver extra value in each engagement. Special Audit Capabilities Talented Senior Consultants Maximum Flexibility Our talent is available under a very flexible model. We have delivered projects that have taken 1 day, 1 month or 1 year to complete. Our rates are the best in the market. We can manage co- sourcing or out-sourcing audit initiatives. And in Latin America, we have the local knowledge and insight. We have a base of approximately 40 senior audit consultants, all of them highly trained and with rich experience in multinational environments, ready to support your audit projects. Our objective: To work with the best internal audit departments around the world to help them manage the risks and opportunities of today’s global markets.
  8. 8. Population Growth 1.0% 0.8% 1.5% 1.5% 1.1% 1.7% 0% 1% 1% 2% 2% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: Annual Percentage
  9. 9. Total Population 44,494.5 209,469.3 49,648.7 18,729.2 126,190.8 31,989.3 0 50,000 100,000 150,000 200,000 250,000 Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: (i) Thousands; (ii) Total Inhabitants
  10. 10. Urban Population 92% 87% 81% 88% 80% 78% 0% 20% 40% 60% 80% 100% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: Percentage of Total Population
  11. 11. Poverty Headcount Ratio 0.5% 4.8% 3.9% 0.7% 2.2% 3.4% 0% 1% 2% 3% 4% 5% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2016 - 2017. Note: (i) At US$1.90 / Day; (ii) Percentage of Population
  12. 12. Latin America’s Most Disliked President Kicks Off Pension Reform President Sebastian Pinera is forging ahead with plans to overhaul Chile’s pension system as he seeks to appease mass protests that have battered the economy and sunk his approval rating to a record low. The government will send this week a bill to Congress requiring employers to contribute to workers’ individual savings accounts and also to a broader solidarity fund aimed at boosting pensions of the middle class. The proposal also increases competition among private companies, known as AFPs, that manage the savings accounts. Pinera’s announcement comes as his approval rating plunges to an all-time low of 6% after three months of demonstrations against inequality rocked the country. Improving pensions that sometimes fall short of Chile’s $400 monthly minimum wage has emerged as a central grievance among protesters. The president’s low level of support may give him no option other than heeding those demands, according to Claudio Fuentes, a political science professor at Universidad Diego Portales. https://www.bloomberg.com/news/articles/2020-01-16/latin-america-s-most-disliked-president-kicks-off-pension- reform
  13. 13. Exports of Goods and Services 14.3% 14.8% 15.9% 28.8% 39.3% 25.4% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: Percentage of GDP
  14. 14. Foreign Direct Investment 0 20000 40000 60000 80000 100000Argentina BrazilColom bia Chile M exico Peru 11,872 88,324 11,352 6,082 36,871 6,487 Source: The World Bank, 2018. Note: (i) Net Inflows; (ii) BoP, Current Million US$
  15. 15. Gross Domestic Product $519,871.5 $1,868,626.1 $331,047.0 $298,231.1 $1,220,699.5 $222,045.0 $0 $300,000 $600,000 $900,000 $1,200,000 $1,500,000 $1,800,000 $2,100,000 $2,400,000 Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: Millions, Current US$
  16. 16. GDP Per Capita $20,610.6 $16,096.4 $15,012.9 $25,222.5 $19,844.6 $14,418.1 $0.0 $5,000.0 $10,000.0 $15,000.0 $20,000.0 $25,000.0 $30,000.0 Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: (i) PPP; (ii) Current US$
  17. 17. Latin America markets affected by US-China trade deal Revaluation of Latin American currencies main effect of pause in trade dispute Financial experts do not usually wait to decide on money -- they anticipate and the effects of a particular political event may have on world markets. The recent signing of a "phase one" agreement between the U.S. and China, which slows down or at least suspends the so-called trade war, is part of those anticipated events. According to several financial and economic analysts, it was taken for granted by markets. Since the end of 2019, the Latin American market had been anticipating possible low trade tensions between the two major world economic powers. That is why the most crucial effects of the agreement would have been foreseen since December. In Latin America, the main effect of the brake on the trade dispute was the revaluation of the region's currencies, which became evident with a drop in the value of the dollar last December. According to this analysis, since the end of last year, the world's stock markets, including Latin America's, had also taken into account that China and the U.S. would not escalate their trade dispute. https://www.aa.com.tr/en/americas/latin-america-markets-affected-by-us-china-trade-deal-/1705081
  18. 18. Inflation 3.7% 3.2% 2.4% 4.9% 1.3% 0% 1% 2% 3% 4% 5% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: (i) Consumer Prices; (ii) Annual Percentage * Data not officially available for Argentina at the World Bank website. Other sources estimate anual inflation rate at around 54%.
  19. 19. GDP Growth -2.5% 1.1% 2.6% 4.0% 2.1% 4.0% -3% -2% -1% 0% 1% 2% 3% 4% 5% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: Annual Percentage
  20. 20. Gross Savings 15% 14% 15% 20% 24% 20% 0% 5% 10% 15% 20% 25% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: Percentage of GDP
  21. 21. Personal Remittances $0.0 $10,000.0 $20,000.0 $30,000.0 $40,000.0 Argentina Brazil Colom bia Chile M exico Peru $507.5 $2,933.5 $6,367.5 $66.1 $35,561.6 $3,224.8 Source: The World Bank, 2018. Note: (i) Received; (ii) Millions, Current US$
  22. 22. Our Service Portfolio ASSURANCE FINANCE TALENT STRATEGY FINANCIAL DUE DILIGENCE (M&A) BACKGROUND CHECKS BUSINESS ASSESSMENTS FRAUD PREVENTION/DETECTION For more information: www.nuricumbo.com STRATEGIC IMPLANTS INTERIM MANAGEMENT INTERIM TEAMS – SPECIAL PROJECTS NOM-035 COMPLIANCE DEBT/EQUITY SOLUTIONS FIDEICOMISOS FINTECH FINANCIAL TRANSFORMATION TAX & FINANCIAL PLANNING COMISARIOS / CONSEJEROS ADVISORY BOARD DIGITAL TRANSFORMATION INNOVATION PROGRAMS
  23. 23. Total Reserves $66,221.5 $374,709.7 $47,887.6 $39,858.8 $176,390.3 $60,333.2 $0.0 $50,000.0 $100,000.0 $150,000.0 $200,000.0 $250,000.0 $300,000.0 $350,000.0 $400,000.0 Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: (i) Includes Gold; (ii) Millions, Current US$
  24. 24. Revenue 19% 27% 23% 22% 19% 17% 0% 5% 10% 15% 20% 25% 30% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2017 - 2018. Note: (i) Excluding Grants; (ii) Percentage of GDP
  25. 25. Government Expenditure on Education 5.5% 6.2% 4.5% 5.4% 4.9% 3.9% 0% 2% 4% 6% 8% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2015 - 2017. Note: Percentage of GDP
  26. 26. Labor Force Source: The World Bank, 2019. 20,434.1 106,328.7 27,249.2 9,533.1 57,558.6 18,818.4 0 20,000 40,000 60,000 80,000 100,000 120,000 Argentina Brazil Colombia Chile Mexico Peru Note: Thousands
  27. 27. Seguro Hombre Clave contacto@nuricumbo.com / +52.55.5339.5829 ¿QUÉ PASARÍA CON TU FAMILIA SI EL DÍA DE MAÑANA YA NO PUEDES ATENDER TU NEGOCIO? Tenemos un portafolio de soluciones innovadoras específicamente enfocadas hacia las pequeñas y medianas empresas mexicanas. UNA DE LAS MEJORES FORMAS DE QUE NUESTRO PAÍS ALCANCE LAS TASAS DE CRECIMIENTO QUE REQUIERE ES A TRAVÉS DEL DESARROLLO ACELERADO DE SUS PEQUEÑAS Y MEDIANAS EMPRESAS. Somos un grupo de consultores multidisciplinarios con mucha experiencia en negocios nacionales e internacionales. Creemos firmemente en soluciones de consultoría bajo demanda, en un esquema flexible y de bajo costo: Contabilidad, impuestos, finanzas personales, personal interino, innovación, cumplimiento, riesgos, etc. En el caso específico de Seguro de Hombre Clave, se trata de un instrumento que permite garantizar la permanencia del negocio, la seguridad financiera de los accionistas o beneficiarios, y que además otorga atractivas ventajas fiscales y patrimoniales. Platiquemos. Estamos en tu WeWork.
  28. 28. Labor Force (Female) 42.0% 43.4% 43.2% 41.8% 37.2% 45.8% 0% 10% 20% 30% 40% 50% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2019. Note: Percentage of Total Labor Force
  29. 29. Unemployment 10.0% 12.2% 9.2% 7.4% 3.4% 2.9% 0% 3% 6% 9% 12% 15% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2019. Note: (i) Percentage of Total Labor Force; (ii) Modeled ILO Estimate
  30. 30. Energy Use Source: The World Bank, 2014 - 2015. 2,030 1,496 724 2,006 1,537 790 0 500 1,000 1,500 2,000 2,500 Argentina Brazil Colombia Chile Mexico Peru Note: Kg of Oil Equivalent per Capita
  31. 31. Renewable Electricity Output 28.1% 74.0% 68.2% 43.6% 15.4% 52.7% 0% 10% 20% 30% 40% 50% 60% 70% 80% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2015. Note: Percentage of Total Electricity Output
  32. 32. Population Living in Slums 17% 22% 13% 9% 11% 34% 0% 10% 20% 30% 40% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2005 - 2014. Note: Percentage of Urban Population
  33. 33. External Debt Stocks 56.1% 30.3% 42.3% 38.0% 31.3% 0% 10% 20% 30% 40% 50% 60% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: Percentage of GNI
  34. 34. Interim Teams for Latam YOUR TRUSTED BUSINESS ADVISORS What can we bring to the table: - Consultants with more than 20 years of experience. - Fully bilingual. - Expert knowledge of business practices in the region. - Flexible business model. - We all have worked for multinationals operating in Latam. WE CAN PROVIDE EFFECTIVE AND EXPERIENCED INTERIM TEAMS TO TACKLE SPECIAL OR CONFIDENTIAL PROJECTS IN LATIN AMERICA. Our consultants bring additional capacity in order to tackle projects and initiatives in the region, without having to distract your internal resources from other priorities. 3 4 Our typical projects include Financial or Operational Audits, Business Process Assessments, Process Improvement, System Implementations, Anti-Corruption Initiatives, Forensic Investigations, Interim Management Positions, among others.
  35. 35. Bank Capital to Assets Ratio 11.0% 10.1% 16.6% 8.4% 10.7% 12.5% 0% 3% 6% 9% 12% 15% 18% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: Percentage
  36. 36. Bank Nonperforming Loans to Total Gross Loans 3.1% 3.1% 4.4% 1.9% 2.1% 3.3% 0% 1% 2% 3% 4% 5% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: Percentage
  37. 37. Deposit Interest Rate 25.1% 6.9% 4.7% 2.7% 3.3% 2.6% 0% 5% 10% 15% 20% 25% 30% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2016 - 2018. Note: Percentage
  38. 38. Lending Interest Rate 37.4% 39.1% 12.1% 4.2% 8.1% 16.5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2016 - 2018. Note: Percentage
  39. 39. OAS ends Honduras anti-corruption mission An anti-corruption commission set up in Honduras four years ago will cease operations on Sunday, the Organization of American States said after failing to reach a deal on extending operations in the graft-riddled country. Negotiations between the OAS and the government of President Juan Orlando Hernandez concluded on Friday but "unfortunately, it was not possible to reach the agreements required for the renewal of the mandate," an OAS statement said. A Central American country of more than nine million, Honduras is plagued by gangs, poverty and corruption. It has seen deadly unrest under Hernandez, whose 2017 re-election was widely seen as fraudulent. There were public calls for his resignation last October when a New York court convicted his brother, former Honduran congressman Tony Hernandez, of drug trafficking. Although he wasn't on trial himself, prosecutors said Juan Orlando Hernandez took millions of dollars in bribes from drug lords including jailed Mexican kingpin Joaquin "El Chapo" Guzman. President Hernandez, an ally of US President Donald Trump, dismissed the accusation as "absurd.” https://www.france24.com/en/20200118-oas-ends-honduras-anti-corruption-mission
  40. 40. Listed Domestic Companies Source: The World Bank, 2018. 93 334 66 205 140 211 0 50 100 150 200 250 300 350 400 Argentina Brazil Colombia Chile Mexico Peru Note: Total
  41. 41. Market Capitalization of Listed Domestic Companies $45,986.05 $916,824.39 $103,848.38 $250,739.56 $385,051.43 $93,385.36 $0.0 $200,000.0 $400,000.0 $600,000.0 $800,000.0 $1,000,000.0 Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: (i) Millions; (ii) Current US$
  42. 42. Strength of Legal Rights Index Source: The World Bank, 2019. 2 2 11 4 10 7 0 2 4 6 8 10 12 Argentina Brazil Colombia Chile Mexico Peru Note: 0 = Weak to 12 = Strong
  43. 43. Military Expenditure 2.1% 3.9% 11.6% 7.4% 2.1% 5.6% 0% 2% 4% 6% 8% 10% 12% 14% Argentina Brazil Colombia Chile Mexico Peru Source: The World Bank, 2018. Note: Percentage of General Government Expenditure
  44. 44. Our Firm at a glance Key Facts Industries • 12 PRACTICE LEADERS • 40 SENIOR CONSULTANTS • 240+ COMBINED YEARS OF EXPERIENCE • INTERNATIONAL EXPOSURE • LATAM CAPABILITIES • MULTIDISCIPLINARY Mexico Business Network Other Strategic Resources • MANUFACTURING • FINANCIAL SERVICES • PROFESSIONAL SERVICES • RETAIL • ADVERTISING • EDUCATION • PRIVATE EQUITY • FAMILY BUSINESS • IMEF • IMCP • COMCE • ABM • ASOFOM • AMEXCAP • CHAMBERS OF COMMERCE • CFO OF THE YEAR • AAPAUNAM • FENG • IFAC • ADN NEWS • BLOOMBERG • EL FINANCIERO • VERITAS For more information: www.nuricumbo.com EY PWC. BBVA / BANAMEX ZIMAT CIT METLIFE GM KPMG DELOITTE. INTERPUBLIC BOMBARDIER +GF+ RGP KANDEO 1990 1995 2000 2004 2005 2010 2015 2018 Formal launch as independent consultancy Professional Experience as Employees History Some of our interventions as Consultants
  45. 45. Armando NuricumboRodrigo Llanos Miguel Amador Guillermo Lagos Former CFOFormer Banker Former Controller / Auditor Former CEO Jesus Bush PWC. IPG. Bombardier. RGP. 25 years of experience. Valmex. Inverlat. Arka. 35 years of experience. Whirlpool. Banco Azteca. 35 years of experience. EY. Smurfit. Maxcom. Devlyn. 30 years of experience. 3M. Imperial Chemical. IMEF 30 years of experience. Alejandro Rico Tax Partner KPMG. Confies. 25 years of experience. Jose Trevino Former NAFTA Negotiator Comexi. Comce. Cancham. 35 years of experience. Angel Hernandez Former CFO Ingram. Dresser. TRW. 35 years of experience. Roberto Fernandez Former CIO AT&T Capital. CIT. Alta. 30 years of experience. Enrique Ugarte Former CEO ProMexico. CCE. Edomex. 35 years of experience. Former CIO Evaristo Pulido Former VP Structured Finance PWC. Lala. Gicsa. ADO. 25 years of experience. Marisol Baca Former VP Administration CFE. BID. Real Financiera. 25 years of experience. Highly-experienced and talented team at your service Our team can provide effective solutions to complex business problems. We can be deployed internationally for the time strictly required by your project. High-quality, highly-efficient, cost-effective talent that creates value from the very first minute.
  46. 46. We care about your business priorities. Let’s talk! E-mail: contacto@nuricumbo.com Mobile/Whatsapp: + 52 (155) 5453 6309 Skype: nuricua Twitter: @a_nuricumbo Office: Montes Urales 424 Lomas de Chapultepec, CDMX Please visit our website

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