Get an overview of the main financial indicators of the Mexican economy for the June - August 2017 period.

1. Key Mexico
Statistics
Period: June – August 2017
Nuricumbo + Partners
Audit • Finance • Risk • Strategy • Business Development

2. Outline
Country Risk
Stock Exchange
Securities Market
1
2
3
4
Exchange Rates
Inflation Rate5
Investment Unit (UDI)6
Economic Confidence Indicator (IMCE)7
International Reserves8
Our Value Proposition
Success Case Studies
Featured Podcast
1
2
3
4
Who we are
Knowledge Sharing5
Business News6
Your Mexico Team7
Contact Information8
Mexico Economic Overview Our Service Portfolio

3. Note: Mexican Pesos per Currency
Source: Mexican Central Bank, www.banxico.org.mx, 2017
$18.60
$19.10
$19.60
$20.10
$20.60
$21.10
$21.60
$22.10
31/08/17
$21.1235
June July August
30/06/17
$20.5995
31/07/17
$20.9596
$15.15
$16.15
$17.15
$18.15
$19.15
$20.15
31/08/17
$17.8145
June July August
30/06/17
$18.0626
31/07/17
$17.8646
$20.60
$21.40
$22.20
$23.00
$23.80
$24.60
$25.40
$26.20
31/08/17
$22.9380
June July August
30/06/17
$23.4425
31/07/17
$23.4455
Exchange Rates
$12.50
$13.00
$13.50
$14.00
$14.50
$15.00
31/08/17
$14.2066
June July August
30/06/17
$13.9276
31/07/17
$14.2837

4. The Country Risk indicates the possibilities of
an emerging country failing to fulfill its
obligations over external debt payments,
whether for capital or interest. The higher
the Country Risk, the larger the possibility of
default.
It is composed of three main sources:
• Sovereign Risk
• Transfer Risk
• Generic Risk
It is measured through the use of the
Emerging Markets Bond Index (EMBI)
created by J.P. Morgan Chase.
Source: www.economia.com.mx, 2017
202
185 185
175.00
180.00
185.00
190.00
195.00
200.00
205.00
June July August
Country Risk
Note: Basis points
Country Risk

5. Source: Mexican Stock Exchange (BMV), http://www.bmv.com.mx/, 2017
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.
Its shareholders are authorized brokerage
firms, which each own one share. Its broad
market indicator is known as “Indice de
Precios y Cotizaciones” (IPC).
Marketable Securities
• Capitals Market (Stocks, Fibras)
• Capital Development Market (CKDes)
• Debt Market (Government, Short,
Medium and Long Term Debt).
49,857.49
51,011.87
51,210.48
49,000
49,500
50,000
50,500
51,000
51,500
June July August
Price and Market Rates Index
(IPC)
Mexican Stock Exchange

6. Source: Mexican Central Bank, www.banxico.org.mx, 2017
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.
6.96%
6.99%
6.91%
6.86%
6.88%
6.90%
6.92%
6.94%
6.96%
6.98%
7.00%
June July August
Government Securities
Auction’s Monthly Results
(Cetes 28-days)
Securities Market

7. Source: Mexican Central Bank, www.banxico.org.mx, Bankrate.com and Federal Reserve Bank of St. Louis, 2017
The Interbank Interest Rate (TIIE) is
determined by the Bank of Mexico based
on quotes presented by credit institutions,
having as its starting date the publication
in the Official Gazette of the Federation.
Highly used to set credit operations in
Mexico.
Libor (London Interbank Offered Rate) is
London's interbank interest rate; it is the
interest rate that banks offer to lend
money to each other in the wholesale
money markets in London. Highly used to
set credit operations in international
markets.
TIIE and Libor Interest Rates
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
TIIE Libor
June July August

8. Source: Mexican Central Bank, www.banxico.org.mx, 2017
Inflation can be defined as a continuous and
widespread increase in goods and services
prices.
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.
6.16%
6.31%
6.44%
6.00%
6.05%
6.10%
6.15%
6.20%
6.25%
6.30%
6.35%
6.40%
6.45%
6.50%
June July August
Annualized Inflation Rates
measured monthly
Inflation Rate

9. Source: Mexican Central Bank, www.banxico.org.mx and Ministry of Finance, www.sat.gob.mx, 2017
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.
5.751414
5.764262
5.795084
5.720000
5.730000
5.740000
5.750000
5.760000
5.770000
5.780000
5.790000
5.800000
June July August
Investment Unit (UDI)
Investment Unit (UDI)

10. Source: Public Accountants Mexican Association, IMCP, http://imcp.org.mx/, 2017
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)
74.71
74.34
76.94
$73
$74
$74
$75
$75
$76
$76
$77
$77
$78
June July August
Economic Confidence
Indicator

11. Source: Mexican Central Bank, www.banxico.org.mx, 2017
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.
$174,506
$173,621
$173,032
$172,000
$172,500
$173,000
$173,500
$174,000
$174,500
$175,000
June July August
International Reserves
(Million USD)
International Reserves

12. 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, strenghten 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.
(Data as of Q1 2017)
Manufacturing,
43.4%
Financial
Services,
21.6%
Transportation
& Storage,
14.0%
Mining, 7.3%
Construction,
4.1%
Commerce,
4.0%
Others, 5.6%
FDI Distribution by Economic
Sector
Foreign Direct Investmet

13. Our Service
Portfolio
Nuricumbo + Partners
Audit • Finance • Risk • Strategy • Business Development

14. INNOVATIVE CONSULTING FIRM FOUNDED
IN 2004 BY TOP LEADERS IN THE
MANAGEMENT CONSULTING SPACE.
 8 practice leaders; more than 25 multi-
disciplinary consultants.
 Areas of expertise include Audit, Finance,
Compliance, Due Diligence, Process
Improvement, Strategic Management,
and Financial Transformation.
 Based in Mexico City, but flexible to take
consulting projects around the world.
 Leaders in the implementation of the
most modern trends in talent
management for companies of all sizes.
We are Nuricumbo + Partners

15. CONSULTING POWER THAT CAN BE
AVAILABLE FOR THE TIME STRICTLY
REQUIRED BY YOUR PROJECT, WITHOUT
ANY LONG TERM COMMITMENTS, AND
WITH HIGH LEVELS OF FLEXIBILITY.
 All our practice leaders are senior level
executives with experience in
multinational corporations and in several
functional roles.
 Our consultants get the job done at the
same time that they become agents of
change for our clients, bringing a fresh
perspective into problem-solving and
sharing past experiences and best
practices.
 Capable of creating value since the very
first day; low learning curve.
Our Value Proposition

16. WE CREATE VALUE TO CLIENTS UNDER THE FOLLOWING ENGAGEMENT MODELS:
 INDEPENDENT ASSESSMENTS
 We provide an independent point of view of the current state, identify strategic
alternatives, and support Management in the implementation of the actions required
to reach the desired state.
 INTERIM MANAGEMENT
 We provide a senior consultant or a team of consultants who work full-time as
implants with Senior Management, taking on special projects, confidential initiatives,
and providing additional bandwidth to progress quickly, without having to distract
resources from valuable day-to-day operations.
 TRADITIONAL CONSULTING
 Our team of consultants can provide strategic, actionable, immediate advice on
specific matters, and on a very flexible basis. Our consultants have the experience
and the know-how, but are also very hadns-on.
Our Lines of Service

17. Success Case Study
CLIENT:
CONTEXT:
OUR
INTERVENTION:
RESULTS:
European multinational, leader in the telecommunications industry, with global
operations related to licensing of proprietary technologies.
The internal audit department of this Company has an aggressive annual plan
that covers more than 100 offices in 64 different geographies. The Company has
established a co-sourcing strategy in order to optimize the use of resources and
to be able to deliver the audit plan on time, without having to increase
permanent headcount.
We work with the internal audit director in order to provide additional
bandwidth to their internal teams, particularly as it relates to the delivery of
audits in the Americas (USA, Mexico, Central and South America). Typically, we
send one or two of our consultants to work hand in hand with the auditors that
are deployed in the region. Our resources provide excellent expertise and
knowledge of the local tax and legal environment. When the audits take place in
Mexico, our teams can take care of the whole audit process from end to end.
The combination of internal and external resources has proven to be very
successful. Our consultants have Big Four experience, taking part of complex
audit projects in Mexico and other parts of the world. They can challenge the
assumptions made by the Company, and provide best practices from other
clients facing similar situations. The Company has been able to reduce their
permanent headcount, optimize the use of their audit budget, and provide
better risk coverage across the organization.

18. Featured Podcast
5 Ways to Lead in an Era of constant Change
Who says change needs to be hard? Organizational change expert Jim Hemerling thinks adapting
your business in today's constantly-evolving world can be invigorating instead of exhausting. He
outlines five imperatives, centered around putting people first, for turning company reorganization
into an empowering, energizing task for all.
https://goo.gl/5UBxd9

19. Knowledge Sharing
The Importance of Audit Planning
What is the purpose of audit planning if the audit may not ultimately follow the carefully thought
out plan? As may be inferred from Eisenhower's words "Plans are worthless, but planning is
everything“ the value of audit planning is not derived solely from the resulting audit plan.
https://goo.gl/4bEo6v
It’s a Big Year for Emerging Growth Companies
Here's some practical advice for companies that did an IPO under the JOBS Act and now must
transition to full-public-company status.
https://goo.gl/69J2mu
What Business Owners Really need to know about Succession Planning
People become the owner of a business for a variety of reasons. Though some inherit the business
from their parents, or grandparents, many go into business for a simple reason: They want to be
independent.
https://goo.gl/7WSxFx
New IRS Rules Could Give Headaches to Partnerships
New rules poised to take effect next year will significantly alter the way the IRS audits partnerships
and other “pass-through” entities.
https://goo.gl/zZdBQd

20. Knowledge Sharing
The Impact of Leadership on Business Success
When it comes to achieving business success, most people think it is mostly because of the
strategy that the business comes up with. Strategy is one part of a whole range of reasons but not
the only reason for success.
https://goo.gl/J31bdS
The Road to Finance Transformation
For CFOs, the lure of the destination — genuine data-driven decision-making that drives
enterprise-wide innovation — is worth the difficulty of the journey.
https://goo.gl/EkUvJC
Good Leaders are Invaluable to a Company. Bad Leaders will Destroy it
When good leadership is in place in a company, it can be felt throughout the entire organization.
With good leadership, corporate culture isn’t forced, it is developed.
https://goo.gl/6eNN8q
CFOs and Sustainability—a growing Relationship
There are powerful reasons why corporate finance teams should be key participants in their
business's sustainability journeys.
https://goo.gl/cXeefp

21. How we can help
WE ARE READY TO HELP WITH YOUR MOST PRESSING BUSINESS PRIORITIES.
We can help you identify valuable options in the resolution of key challenges.
Let’s schedule a call or meeting at your convenience. Let’s talk!
Our greatest objective is to help you resolve complex business problems.
For more information on our service portfolio, please click here.

22. E-mail: armando@nuricumbo.com
Facebook/LinkedIn Messenger: armando.nuricumbo
Twitter: @a_nuricumbo
Skype: nuricua
Mobile/Whatsapp: + 52 (155) 5453 6309
Office: Montes Urales 424, Lomas de Chapultepec, 11000, CDMX
Contact Information