Get an overview of the main financial indicators of the Mexican economy for the February - April 2018 period.

1. Our Monthly
Newsletter
May 2018
Nuricumbo + Partners
Business Assurance • Interim Management • Risk • Strategy

2. Content
Country Risk
Stock Exchange
Treasuries Market
1.1
1.2
1.3
1.4
Exchange Rates
Inflation Rate1.5
Economic Confidence Indicator (IMCE)1.7
International Reserves1.8
Foreign Direct Investment1.9
Article Exchange
Latin America Update
Our Service Portfolio
2.1
2.2
2.3
Featured Content
Success Case Studies
3.1
Your Practice Leaders
3.2
Contact Information
3.3
3.4
Mexico Economic Overview Knowledge Center
How we can help
Investment Unit (UDI)1.6

3. Note: Mexican Pesos per Currency
Source: Mexican Central Bank, www.banxico.org.mx, 2018
$21.10
$21.60
$22.10
$22.60
$23.10
$23.60
$24.10
$24.60
30/04/18
$22.7248
February March April
28/02/18
$23.0093
28/03/18
$22.6404
$15.15
$16.15
$17.15
$18.15
$19.15
$20.15
$21.15
30/04/18
$18.7878
February March April
28/02/18
$18.8331
28/03/18
$18.2709
$23.80
$24.60
$25.40
$26.20
$27.00
$27.80
$28.60
30/04/18
$25.7863
February March April
28/02/18
$26.0688
28/03/18
$25.8405
Exchange Rates
$13.00
$13.50
$14.00
$14.50
$15.00
$15.50
$16.00
30/04/18
$14.6049
February March April
28/02/18
$14.6908
28/03/18
$14.1884
1.1

4. 183
195 194
175.00
180.00
185.00
190.00
195.00
200.00
February Mach April
EMBI - Country Risk
Note: Basis points
Country Risk
1.2
The Country Risk indicates the possibilities of an
emerging country failing to fulfill its obligations
over external debt payments, whether for capital
or interest.
It is composed of three main sources:
• Sovereign Risk
• Transfer Risk
• Generic Risk (political, social, devaluations)
The Big Three credit rating agencies are Standard &
Poor's (S&P), Moody's, and Fitch Group, providers
of credit ratings, research, and risk analysis.
The Emerging Markets Bond Index (EMBI) is a
benchmark index for measuring the total return
performance of international government bonds
issued by emerging market countries that are
considered sovereign. The EMBI includes dollar-
denominated loans and Eurobonds. The higher the
Country Risk, the larger the possibility of default.
Source: www.economia.com.mx, 2018 and www.countryeconomy.com
Moody’s S&P Fitch
Date
Rating
Outlook
Date
Rating
Outlook
Date
Rating
Outlook
11/04/18 A3 (Stable) 18/07/17
BBB+
(Stable)
16/03/18
BBB+
(Stable)
United Mexican States Credit Rating
Long Term Rating – Foreign Currency

5. Source: Mexican Stock Exchange (BMV), http://www.bmv.com.mx/, 2018
47,437.93
46,124.85
48,358.16
45,000
45,500
46,000
46,500
47,000
47,500
48,000
48,500
49,000
February March April
Indice de Precios y
Cotizaciones (IPC)
Mexican Stock Exchange
1.3
The Mexican Stock Exchange (BMV) is a public
institution that operates under a concession granted
by the Ministry of Finance (SHCP), observing the
Mexican Securities Law. BMV is the second largest
stock exchange in Latin America with a total market
capitalization of over US$ 530 billion and 140
companies listed.
Its shareholders are authorized brokerage firms, which
each own one share. Its broad market indicator is
known as “Indice de Precios y Cotizaciones” (IPC).
On August 29, 2017, SHCP granted a new concession to
Bolsa Institucional de Valores (“BIVA”) to operate a
new stock exchange in Mexico.
Examples of Marketable Securities
• Capitals Market (Stocks, Fibras)
• Capital Development Market (CKDes)
• Debt Market (Government, Short, Medium and
Long Term Debt).

6. Source: Mexican Central Bank, www.banxico.org.mx, 2018
7.47%
7.49%
7.47%
7.46%
7.47%
7.48%
7.49%
7.50%
February Mach April
Government Treasuries Auction’s
Monthly Results (Cetes 28-days)
Treasuries Market
1.4
Mexico’s Central Bank (Banxico) carries out operations
in the securities market in order to regulate the
liquidity of Mexico’s financial system.
It also undertakes primary auctions of securities for the
government and other public sector entities, and
issues regulations on several financial operations of
financial intermediaries.
Cetes 28
Zero coupon bonds denominated in Mexican Pesos
issued by the Mexican Government. The instrument
due in 28 days is a common reference.
TIIE
The Equilibrium Interbank Interest Rate (TIIE) is
determined by the Bank of Mexico based on quotes
presented by credit institutions, and is calculated on a
daily basis (for periods of 28 and 91 days) having as its
starting date the publication in the Official Gazette of
the Federation. Highly used to set credit operations in
Mexico.
7.8315%
7.8483% 7.8508%
7.82%
7.83%
7.84%
7.85%
7.86%
February March April
TIIE – 28 days

7. Source: Mexican Central Bank, www.banxico.org.mx, 2018
5.55%
5.34%
5.04%
4.70%
4.80%
4.90%
5.00%
5.10%
5.20%
5.30%
5.40%
5.50%
5.60%
February March April
Annualized Inflation Rates
measured monthly
Inflation Rate
1.5
Inflation can be defined as a continuous and
widespread increase in goods and services
prices.
The inflation rate for Mexico is based upon
the Consumer Price Index (CPI). INEGI
(Instituto Nacional de Estadística Geografia e
Informática) is responsible for calculating and
publishing the rate in the Official Gazette of
the Federation within the first 10 days of
every month.
The Consumer Price Index (CPI) is the
statistical instrument that calculates inflation
by continuously measuring the price changes
of households’ representative basket of
goods and services.

8. Source: Mexican Central Bank, www.banxico.org.mx and Ministry of Finance, www.sat.gob.mx, 2018
The Investment Unit (Unidad de Inversion,
UDI) is a value unit linked to the overall
movement of prices. It is commonly used in
financial operations or investment
instruments that are required to guarantee a
return above inflation. The Mexican Central
Bank is the responsible authority to publish
its value in Mexican Pesos for each day of the
month.
6.002620
6.019105
6.026212
5.990000
5.995000
6.000000
6.005000
6.010000
6.015000
6.020000
6.025000
6.030000
February March April
Investment Unit (UDI)
Investment Unit (UDI)
1.6

9. Source: Public Accountants Mexican Association, IMCP, http://imcp.org.mx/, 2018
The Mexican Economic Confidence Index,
IMCE, is an indicator which aims to quantify
the expectation of the perceived business
climate through the perception of more than
20,000 registered public accountants of
nearly 60 colleges affiliated to Public
Accountants Mexican Institute, IMCP.
The indicator is divided into two main
components, which presents the current
perception in the business climate as well as
the perspective in six months. Its score is
measured through a range of 0 to 140 points.
Higher values represent higher optimism.
Economic Confidence Indicator (IMCE)
78.01
72.33
74.07
$69
$70
$71
$72
$73
$74
$75
$76
$77
$78
$79
February March April
Economic Confidence
Indicator
1.7

10. Source: Mexican Central Bank, www.banxico.org.mx, 2018
Known as financial assets invested abroad by
the Mexican Central Bank that can easily be
converted into means of payment.
According to the Mexican Central Bank, the
following are considered as International
Reserves:
• Foreign bank notes and coins;
• Deposits, securities and stocks payable
outside of Mexico;
• Loans by Central Banks payable at no
longer than six months;
• The Special Drawing Rights at the
International Monetary Fund.
$172,910
$173,232
$173,257
$172,700
$172,800
$172,900
$173,000
$173,100
$173,200
$173,300
February March April
International Reserves
(Million USD)
International Reserves
1.8

11. Source: Ministry of Economy, https://www.gob.mx/se/, 2017
The Foreign Direct Investment (FDI) is an
important catalyst for development, since it has
the potential to generate employment, increase
savings and attract foreign exchange, encourage
competition, strengthen the transfer of new
technologies and boost exports. All this
positively affecting the productive and
competitive environment of a country.
The General Direction of Foreign Investment
(DGIE), as part of Mexico’s Ministry of Economy,
makes available a series of statistical and
economic documents on FDI.
Foreign Direct Investmet
1.9
$19,299.00
$19,870.00
$21,868.00
$33,029.00
$59,411.00
$245,595.00
$103,275.00
Belgium
Netherlands
Japan
Canada
Spain
United
States
Others
$- $100,000.00 $200,000.00 $300,000.00
Accumulated FDI by County of Origin
1999 – 2017
(Million USD)

12. Knowledge Center
M&A Predictor 2018 Annual Report
Global M&A transactions lost some ground during 2017 when compared with 2016's activity but we expect deal-
making to regain some momentum in 2018. Based on M&A Predictor data, we anticipate an upward trend this
year - and the first quarter of 2018 might offer a glimpse of what's ahead, as total M&A deal value increased
while average deal value soared to a 10-year high.
As stressed in last year's report and emphasize again this year, it's no surprise that the upward trend seen in
cross-sector deal-making continues. The hunt for innovation is robust as companies - including mid-market and
private-equity players - increasingly pursue transformational technologies and game-changing digital capabilities
deemed critical to their future competitiveness.
Established in 2007, KPMG International's M&A Predictor is a forward-looking report that helps member firm
clients to forecast worldwide trends in mergers and acquisitions. KPMG's Predictor tool is supplemented with
insights from KPMG's integrated network of global sector specialist, examining global trends across a wide
spectrum of deal-types: domestic, region to region, cross-border and cross-sector.
Featured Content
2.1

13. Knowledge Center
Overview of Mexico’s 2018 Electoral Process
“The 2018 election will have a big impact, not just for Mexico but also for multinational companies that operate
in Mexico and north of the border in the US. Companies such as GE, IBM, Ford, Citi and Wal-Mart have invested
heavily in Mexico over the last twenty plus years. Mexico’s economy has grown in fits and bursts during the
NAFTA era but recent governments have done little to address the longstanding woes of a deeply divided
society.
In the 2018 election many parts of the country citizens tired with rampant corruption, brutal inequality, and
decades of sluggish growth will have to decide between trying to persevere and preserve the nascent gains from
the export-focused NAFTA era or shift to re-embrace a populist model that wants to at least partially reject the
export-led development model and focus on boosting local industrial and agricultural output.
During the NAFTA era presidents from Mexico’s centrist Institutional Revolutionary Party (PRI) and right-of-
center National Action Party (PAN) have embraced a corrupt form of neoliberal capitalism that has focused on
investing heavily in industry in export sectors in the north of the country but has done substantially less to foster
real development initiatives in the country’s impoverished south.” - Forbes
Featured Content
2.1

14. ON SUNDAY JULY 1ST, 2018, ELECTIONS WILL OCCUR IN MEXICO FOR THE FOLLOWING:
1 President 128 Senators 500 Federal Deputies
8 State Governors 1 Mexico City Governor 16 Mexico City Mayors
972 Local Deputies 1596 Municipal Mayors 24 Municipal Boards
POLITICAL CAMPAIGNS STARTED ON MARCH 30TH AND WILL CONCLUDE ON JUNE 27TH.
PUBLIC FINANCING GIVEN TO POLITICAL PARTIES WILL REACH 6,703M MXN
(APPROXIMATELY 370M USD).
THERE WILL BE FIVE CANDIDATES FOR THE POST OF PRESIDENT OF MEXICO, THREE FROM
LARGE POLITICAL PARTIES, AND TWO INDEPENDENT. MOST LIKELY THE INDEPENDENTS WILL
NOT REACH MORE THAN 5% OF THE VOTE.
SO FAR THE LEADING CANDIDATE IN ALMOST EVERY POLL IS ANDRES MANUEL LOPEZ
OBRADOR (AMLO). LEFTIST CANDIDATE WHO WAS GOVERNOR OF MEXICO CITY FROM 2000
TO 2006 AND WHO HAS LOST TWO PRESIDENTIAL ELECTIONS.
THREE PRESIDENTIAL DEBATES ARE SCHEDULED FOR APRIL 22ND, MAY 20TH, AND JUNE 12TH.
Overview

15. Political Party: MORENA
Political Coalition: “Together
we will make History” (MORENA,
PT, ES).
Professional Career
• Director of Tabasco Indigenous Institute
• Director of National Consumer Institute
• Candidate for Tabasco State Governorship
• President of PRD Political Party
• Co-founder of National Democratic
Alliance
• Mexico City Governor
• Presidential Election Candidate (3rd time)
Andres Manuel Lopez Obrador
(Holds between 35 and 40% of vote intention)
Main Proposals
• Fight corruption and ensure respect to the
rule of law. Decrease impunity.
• Fight poverty by granting education, food,
health, jobs, household, sports and culture.
• Improvement in national security through
change of strategy.
• Financial viability through honest and austere
use of public resources.
• Gender equality through public and inclusive
policies to improve women’s rights.
• Sustainable development and wellness by
considering economic, social and
environmental impact of policies.
Possible scenario in case of victory
Could attempt to implement populist economic, social and political policies. Uncertainty about his
degree of radicalism. Will he be a Lula da Silva or a Hugo Chávez? Could put at risk the continuity of
existing structures, agreements, policies and recent structural reforms. Could compromise the
integrity of certain institutions and could attempt to change the rules to hold power for longer term.
Could create significant financial volatility in the short term in interest rates, stocks and forex.

16. Political Party: PAN
Political Coalition: “For Mexico to
the Front” (PAN, PRD, MC).
Professional Career
• Municipal Youth Institute Director
• Local Deputy Candidate by PAN
• Private Secretary of Queretaro Governor
• Local Deputy at the LVI Legislature
• PAN State President
• Federal Tourism Planning Vice Minister
• Federal Deputy at the LXII Legislature
• President of the Chamber of Deputies
• PAN National President
Ricardo Anaya
(Holds between 25 and 30% of vote intention)
Main Proposals
• Coalition-based Government with strong
citizen participation.
• Autonomous Prosecution Agency to try high-
profile corruption and impunity cases. To
imprison current president if evidence of
corruption is found.
• Improvement of the Anti-Corruption National
System.
• Restructuring current national security
strategy, emphasizing crime prevention and
with total respect to human rights.
• Sustained economic growth via inclusive
policies to fight inequality.
• Strengthening of Mexico’s sovereignty.
Possible scenario in case of victory
Post-electoral difficulties derived from the Coalition with PRD, since both parties have different
philosophies. Policies, strategies and actions are not yet well defined. However, no major policy
changes would be expected - stability and continuity with structural reforms. Many question his youth
and lack of government experience. Potentially autocratic decision-making process could lead to
division, conflict and mistakes. May benefit from the anti-AMLO vote. Low short-term volatility.

17. Political Party: PRI
Political Coalition: “Everyone for
Mexico” (PRI, PVEM, PNA).
Professional Trajectory
• Planning Analyst at Insurance Commission
• Director of Rural National Credit Bank
• Revenue Vice Minister at Finance Ministry
• Energy Minister
• Finance Minister
• Foreign Affairs Minister
• Social Development Minister
• Finance Minister (2nd time)
• Public Finance PhD by Yale University, U.S.
Jose Antonio Meade
(Holds between 15 and 20% of vote intention)
Main Proposals
• Integral approach to fight insecurity (salary
increase to the Army, among others).
• High quality level of education by creating
more schools, recognizing good teachers.
• Education, jobs or small-business for all young
population.
• Investment in public hospitals, emphasis in a
health prevention culture.
• Women will be a priority: Increase in public
security and availability of credits for women-
owned businesses.
• Improvement of public health, alignment of
federal and local social policies.
• Continuity of structural reforms.
Possible scenario in case of victory
Post-electoral difficulties derived from the extremely low acceptance of the PRI, based on low
approval rates of the current president. Strong perception of the continuity of an old and corrupted
government system; no strong, new convincing proposals. Ruling party, no major changes expected.
Candidate with the best professional profile and most government experience. Would ensure low
volatility and smooth transition. However, low probability of victory.

18. Article Exchange
Digital or Bust: Today's New Business Reality
In today’s digital age, things move faster than ever and businesses are agile. These are the benefits of a growing and far-
reaching trend around digital business.
CFOs Bullish on 2018
Buoyed by the Tax Cuts and Jobs Act, U.S. CFOs project sizable increases in earnings, capital spending, and technology
outlays this year.
Automation in Finance: Get your Team Ready
The Tax Cuts and Jobs Act may be getting a lukewarm reception from consumers, but CFOs are clearly over the moon
about the lower corporate income tax rate and other provisions.
How Blockchain might Affect Audit and Assurance
Emerging technologies like artificial intelligence and blockchain will radically transform how companies view and
perform finance and accounting functions in the very near future.
8 Keys To Success For CIOs Leading Digital Transformation
The business and IT landscape has significantly shifted over the years and the use of digital technologies to transform
business is dramatically impacting every single sector and industry.
Report finds Big Fraud Problems for Small Businesses
Occupational fraud continues to siphon staggering amounts of money from businesses worldwide, with smaller
organizations being hit particularly hard.
2.2

19. Latin America Update
World's Best Bank Awards 2018: Latin America
Weak global commodity prices have impacted Latin America’s
economic growth prospects since 2014, while political instability
and scandals in such major markets as Argentina, Brazil and
Venezuela have generated economic recessions. The region’s
banking sector, which had been booming until the regional
slowdown, was still working toward recovery in 2017, laying the
groundwork for what it hopes will be a path to long-term
profitability.
Has Latin America’s Crusade Against Corruption Gone too Far?
Have recent events against corruption begun to threaten
democracy and the rule of law, instead of strengthening them?
There is a case to be made for these doubts, but it is a weak and,
ultimately, flawed one. Whatever the drawbacks and dangers of
the current anti-corruption drive in the region, they are
preferable to the alternative: an intolerable status quo.
The Trumpification of the Latin American Right
Given Latin America’s right-wing turn’s affinities with Trumpism, it
is tempting to see it as part of the global wave of right-wing
populism making its way through the United States and Western
Europe. Its roots are thought to rest in widespread discontent
with globalization, open borders, the “establishment,” and
multilateral organizations such the European Union. Among the
more notable casualties of this revolt of the masses are Hillary
Clinton’s presidential campaign and Britain’s exit from the EU.
Belt and Road Initiative Key to forging shared Prosperous Future
between China and LatAm
The Belt and Road Initiative proposed by Chinese President Xi
Jinping in 2013 is the key to building a shared prosperous future
between China and Latin America, Argentine economist Maria
Cecilia Peralta has said. China and Latin America have maintained
very smooth development of ties for many years now, "as
reflected by the continuous growth in trade flows, investment and
relationship strategies between the two regions," said Peralta.
New Development Proposals for Latin America, Caribbean
The Economic Commissioner for Latin America and the Caribbean
(ECLAC) is to present a new institutional document with its
development proposal for the countries of Latin America and the
Caribbean (LAC). ECLAC said that the document, which examines
the social gaps and lags that Latin American and Caribbean
countries suffer, will be released during its five-day 37th biennial
meeting.
Latin American Banks were slow to go Digital but now they're
moving Fast
Banks in Latin America are picking up the pace in moving to digital,
according to the third annual digital banking report from
Technisys, a digital banking technology company. “The most
important thing that is changing is the way the market is evolving
in digital banking,” said German Pugliese-Bassi, cofounder and
CMO at Technisys. 2.3

20. WE ARE NURICUMBO + PARTNERS

21. CONSULTING POWER THAT CAN BE
AVAILABLE FOR THE TIME REQUIRED BY
YOUR PROJECT, WITH NO LONG TERM
COMMITMENTS AND WITH HIGH LEVELS OF
FLEXIBILITY.
 All our practice leaders are senior level
executives with experience in
multinational corporations and in specific
functional roles.
 We get the job done at the same time
that we become agents of change for our
clients, bringing a fresh perspective into
problem-solving and sharing past
experiences and best practices.
 Capable of fully embedding into your
operations and creating value since the
very first day (Touch & Play).
Our Value Proposition
3.1

22. OUR SERVICE PORTFOLIO
BUSINESS ASSURANCE
 Business Process Assessments
 Internal Audit Co-Sourcing
 Forensic Investigations
 Know Your Customer / Supplier
 Financial Due Diligence (M&A)
 Loan Review
 Contract Compliance
TALENT SOLUTIONS
 Interim Management
 Project Support
 Rotation Insurance
 Test-Drive Model (Contract-to-Hire)
 Project Management
 Change Management
 Training & Development
FINANCE OPTIMIZATION
 Cost Savings Initiatives
 Process Automation
 Trust (Fideicomiso) Management
 Credit Solutions
 Private Equity
 Treasury in the Cloud
 Retirement & Insurance
STRATEGY & COMMUNICATIONS
 Strategic Planning
 Advisory Board
 Innovation & Disruption
 IPO Readiness
 Crisis Management
 Business Landing Services
 Proprietary Marketing Program

23. Rotation insurance
For more information, please visit our website
We bring you an expert consultant.
Works as an implant. Full time with you.
No learning curve. Hands-on. Excels at
the tactical and strategic levels. Not only
brings 20+ years of experience to the
table, but is supported by the rest of our
Firm. And with the following advantages:
OUR INNOVATIVE MODEL PROVIDES A
UNIQUE WAY TO PROTECT YOUR
COMPANY AGAINST THE NEGATIVE
EFFECT OF KEY EMPLOYEE ROTATION.
Our consultant brings additional capacity
in order to tackle special projects,
without having to distract your internal
resources from day-to-day operations.
Our Implant
Director
Manager 2
C-Level Executive
2
3
Manager 1
Analyst 1 Analyst 2
Supported by the rest of our firm
Being external, our consultant can tackle
confidential projects and initiatives
effectively and securely.
In case of key employee rotation, our
consultant can immediately cover the
open position, helping maintain stability
in the operations, and giving enough time
to HR in order to perform an adequate
hiring.

24. Complete Profiles
Armando Nuricumbo
Jorge Pulido
Oscar Becerril
Guillermo Lagos German de la Garza
CPA. CFE. MsC.
MBA.
MBA.
PhD. Former President Staff
Jesus Bush
MBA.
Accounting. Finance.
Risk. Audit. Strategy.
Financial Markets.
Investor Relations.
Corporate Strategy.
Disruptive Thinking.
Financial Services.
Credit. Risk. M&A.
Intrapreneurship.
50+ Talent Solutions.
Government
Relations. PR & Crisis.
Your Practice Leaders
Alejandro Rico
MsC.
Tax advice.
Compliance initiatives.
Jose Trevino
Former NAFTA team
International Relations.
Business Landing.

25. How we can help your business projects
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flexible support
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and initiatives
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