• What Keeps Me Up At Night?

• What Gets Me Up In The Morning?

• What Excites Me About The Future?

What Keeps Me Awake at Night?

• Violence

• Currency Risk

• US/Mexico Fiscal and Regulatory Compliance

What Keeps Me Awake at Night?

• Violence

What Keeps Me Awake at Night?

• Currency Fluctuations

10/26/08

12/5/08

1/14/0

9

2/23/0

9

4/4/09

5/14/0

9

6/23/09

8/2/09

9/11/0

9

10/21/09

11/30/09

1/9/10

2/18/1

0

3/30/1

0

5/9/10

6/18/1

0

7/28/10

9/6/10

10/16/10

11/25/10

1/4/11

2/13/11

3/25/1

1

5/4/11

6/13/11

7/23/1

1

9/1/11

10/11/11

11/20/11

12/30/11

2/8/12

3/19/12

4/28/1

2

6/7/12

7/17/1

2

8/26/12

10/5/12

11

11.5

12

12.5

13

13.5

14

14.5

15

15.5

4 Year USD/MXN Historical Exchange RatesOctober 2008 to October 2012

USD/MXN

What Keeps Me Awake at Night?

• US/Mexico Fiscal and Regulatory Compliance • Foreign Entity Reporting Demands• Bank Regulations on International Money

Movements

• Unique to Mexico• IMMEX Program Compliance

• Severe Penalties

• Trends in Global Trading Blocs

• Trends in Mexico (Auto Industry)

• Impact on the NAFTA Region

What Gets Me Going In The Morning

Source: SE

Regional Independence Matters

Trends in Global Trading Blocs

Trends in Global Trading Blocs

Regional Independence Matters

More than 100 suppliers for:

142 suppliers for:

More than 190 suppliers for:

More than 70 suppliers for:

DCH

+ Access to Detroit

Automotive sector supply chain

Trends in Global Trading Blocs

Regional Independence Matters

Mexico vs. China Wage Rate

11SOURCE: International Labour Organization, U.S. Bureau of Labor Statistics

U.S.

Dol

lar

Since 2003, wages in Mexico have risen only 25 percent compared to 218 percent in China.

• Trends in Mexico (Auto Industry)

What Gets Me Going In The Morning

Jan-04

Apr-04Jul-0

4Oct-

04Jan

-05

Apr-05Jul-0

5Oct-

05Jan

-06

Apr-06Jul-0

6Oct-

06Jan

-07

Apr-07Jul-0

7Oct-

07Jan

-08

Apr-08Jul-0

8Oct-

08Jan

-09

Apr-09Jul-0

9Oct-

09Jan

-10

Apr-10Jul-1

0Oct-

10Jan

-11

Apr-11Jul-1

18

9

10

11

12

13

14

15

16

5

5.5

6

6.5

7

7.5

8

8.5

Mexican Peso / USD Chinese Yuan / USD

Mexico’s Currency Advantage

12SOURCE: Banco de México, Chinability

Peso & Yuan Exchange Rate

In US Dollar terms, since 2005 products sourced in Mexico have become about 33 percent less expensive than products sourced in China.

• Trends in Mexico (Auto Industry)

What Gets Me Going In The Morning

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0%

5%

10%

15%

20%

25%

30%

35%

40%

24% 26%

México Canadá Alemania Japón

Share of the US imports (Percentage)

 

Source: WTO

Source: US Census Bureau

Mexican Automotive Industry GrowingIn 2010 the Mexico became the largest exporter of cars to the U.S.

Canada Germany Japan

What Gets Me Going In The Morning

• Trends in Mexico (Auto Industry)

Automotive Industry Location Map

• Impact on the NAFTA Region

What Gets Me Going In The Morning

• Impact on the NAFTA Region

What Gets Me Going In The Morning

• Impact on the NAFTA Region

What Gets Me Going In The Morning

• Impact on the NAFTA Region

What Gets Me Going In The Morning

• Impact on the NAFTA Region

What Gets Me Going In The Morning

• Impact on the NAFTA Region

What Gets Me Going In The Morning

What Gets Me Going In The Morning

• Impact on the NAFTA Region

• Buy Regional A larger Local

What Excites Me About The Future

What Excites Me About The Future

What Excites Me About The Future

What Excites Me About The Future

What Excites Me About The Future

What Excites Me About The Future

What Excites Me About The Future

29

ROCHE Industries Integrator & Connector of vision

4 3

1 2

BD MedicalFunding & structure

ITEAMSIntegrator of community transformation

Agua VivaCommunityTransformationleader

•Community Transformation•Sustainable business•Teaching to Fish

What Excites Me About The Future