Ferromex: A key player in the North American

Railroad System

Ferrocarriles Nacionales de México

Las 5Cs de Ferromex para la calidad en el servicio

How bad can a Railroad be?

Ferrocarriles Nacionales de México

Ferrocarriles Nacionales de México

Capital Investments were very scarce prior to privatization

Francisco J. Gorostiza, Renacimiento de los ferrocarriles de carga en México

Per each US$1,00 of revenue, cost was US$2,25

Ferrocarriles Nacionales de México

Francisco J. Gorostiza, Renacimiento de los ferrocarriles de carga en México

The Mexican Railroad became an obsolete mode of transportation

Ferrocarriles Nacionales de México

Francisco J. Gorostiza, Renacimiento de los ferrocarriles de carga en México

Grupo México

Las 5Cs de Ferromex para la calidad en el servicio

Background

Grupo Mexico: Evolution

Grupo Mexico: Currently

Grupo Mexico

$9,3 ANNUAL REVENUE (BILLION USD)

30,018 EMPLOYEES

3 COUNTRIES OPERATED

556 FORBES LIST 2015

LARGEST COPPER RESERVES WORLDWIDE 1° 4th COPPER PRODUCER WORLDWIDE

Grupo México Statistics

Grupo Mexico

Key Results

Grupo México 2015

Grupo Mexico Consolidated Financial Highlights

Market Cap as of June 2015:

Millions of USD 2010 2011 2012 2013 2014 2015

Copper Price (Avg. US$ per lb) 3.43 4.01 3.61 3.34 3.12 2.89

Revenues 8,338 10,443 10,183 9,357 9,324 9,057

Mining Division 84% 83% 82% 78% 76% 75%

Mexico 29% 42% 45% 45% 47% 49%

Peru 46% 36% 35% 35% 35% 35%

USA 25% 22% 20% 20% 18% 16%

Transportation Division 15% 16% 17% 19% 21% 22%

Infrastructure Division 2% 1% 1% 3% 3% 4%

EBITDA 3,921 5,194 5,006 4,147 3,833 3,636

Net Income 1,627 2,472 2,402 1,845 1,795 2,053

Cash & Securities 2,928 2,229 3,193 2,589 1,640 2,998

Total Assets 14,598 15,251 19,558 20,213 20,878 22,251

Total Debt¹ 3,957 3,801 5,583 5,811 5,948 7,846

Shareholder's Equity 5,967 7,269 8,293 9,458 9,829 9,989

Capital Expenditures 604 1,217 2,118 2,852 2,433 2,147

Free Cash Flow² 2,643 1,761 1,082 41 35 28

1 Includes short-term and long-term debt

2 Free Cash Flow defined as net cash from operating activities less capital expenditures

US$23 B

Copper Price (Avg. US$ per Lb) 3.43 4.01 3.61 3.34 3.12 2.34

E

Grupo Mexico Consolidated Financial Highlights

Market Cap as of June 2015:

Millions of USD 2010 2011 2012 2013 2014 2015

Copper Price (Avg. US$ per lb) 3.43 4.01 3.61 3.34 3.12 2.89

Revenues 8,338 10,443 10,183 9,357 9,324 9,057

Mining Division 84% 83% 82% 78% 76% 75%

Mexico 29% 42% 45% 45% 47% 49%

Peru 46% 36% 35% 35% 35% 35%

USA 25% 22% 20% 20% 18% 16%

Transportation Division 15% 16% 17% 19% 21% 22%

Infrastructure Division 2% 1% 1% 3% 3% 4%

EBITDA 3,921 5,194 5,006 4,147 3,833 3,636

Net Income 1,627 2,472 2,402 1,845 1,795 2,053

Cash & Securities 2,928 2,229 3,193 2,589 1,640 2,998

Total Assets 14,598 15,251 19,558 20,213 20,878 22,251

Total Debt¹ 3,957 3,801 5,583 5,811 5,948 7,846

Shareholder's Equity 5,967 7,269 8,293 9,458 9,829 9,989

Capital Expenditures 604 1,217 2,118 2,852 2,433 2,147

Free Cash Flow² 2,643 1,761 1,082 41 35 28

1 Includes short-term and long-term debt

2 Free Cash Flow defined as net cash from operating activities less capital expenditures

US$23 B

Grupo Mexico Consolidated Financial Highlights

Market Cap as of June 2015:

Millions of USD 2010 2011 2012 2013 2014 2015

Copper Price (Avg. US$ per lb) 3.43 4.01 3.61 3.34 3.12 2.89

Revenues 8,338 10,443 10,183 9,357 9,324 9,057

Mining Division 84% 83% 82% 78% 76% 75%

Mexico 29% 42% 45% 45% 47% 49%

Peru 46% 36% 35% 35% 35% 35%

USA 25% 22% 20% 20% 18% 16%

Transportation Division 15% 16% 17% 19% 21% 22%

Infrastructure Division 2% 1% 1% 3% 3% 4%

EBITDA 3,921 5,194 5,006 4,147 3,833 3,636

Net Income 1,627 2,472 2,402 1,845 1,795 2,053

Cash & Securities 2,928 2,229 3,193 2,589 1,640 2,998

Total Assets 14,598 15,251 19,558 20,213 20,878 22,251

Total Debt¹ 3,957 3,801 5,583 5,811 5,948 7,846

Shareholder's Equity 5,967 7,269 8,293 9,458 9,829 9,989

Capital Expenditures 604 1,217 2,118 2,852 2,433 2,147

Free Cash Flow² 2,643 1,761 1,082 41 35 28

1 Includes short-term and long-term debt

2 Free Cash Flow defined as net cash from operating activities less capital expenditures

US$23 B

Grupo Mexico Consolidated Financial Highlights

Market Cap as of June 2015:

Millions of USD 2010 2011 2012 2013 2014 2015

Copper Price (Avg. US$ per lb) 3.43 4.01 3.61 3.34 3.12 2.89

Revenues 8,338 10,443 10,183 9,357 9,324 9,057

Mining Division 84% 83% 82% 78% 76% 75%

Mexico 29% 42% 45% 45% 47% 49%

Peru 46% 36% 35% 35% 35% 35%

USA 25% 22% 20% 20% 18% 16%

Transportation Division 15% 16% 17% 19% 21% 22%

Infrastructure Division 2% 1% 1% 3% 3% 4%

EBITDA 3,921 5,194 5,006 4,147 3,833 3,636

Net Income 1,627 2,472 2,402 1,845 1,795 2,053

Cash & Securities 2,928 2,229 3,193 2,589 1,640 2,998

Total Assets 14,598 15,251 19,558 20,213 20,878 22,251

Total Debt¹ 3,957 3,801 5,583 5,811 5,948 7,846

Shareholder's Equity 5,967 7,269 8,293 9,458 9,829 9,989

Capital Expenditures 604 1,217 2,118 2,852 2,433 2,147

Free Cash Flow² 2,643 1,761 1,082 41 35 28

1 Includes short-term and long-term debt

2 Free Cash Flow defined as net cash from operating activities less capital expenditures

US$23 B

% Margin 47.0% 49.7% 49.1% 44.3% 41.1% 40.1%

Ferromex

Transportation Division

Provides rail services, intermodal and support in logistic solutions

Largest Rail coverage in Mexico

Third largest Rail coverage in Mexico

Operates 178 locomotives, 7,977 cars and has a workforce of 2,038 employees

Offers terminal services; loading and unloading of goods and overland transportation

Operates in 40 major cities and in 12 states in Mexico

Operates in West Texas over the South Orient Rail Line

Interchanges with UP at Alpine, TX; BNSF and FWWR at San Angelo Junction Operates 620 locomotives,

19,508 cars and has a workforce of 7,983 employees

Transportation Division

Transportation Division

Ferromex Statistics

Connected with the key players in the global supply chain

Ferromex

Ferromex

6,719 MILES

798 LOCOMOTIVES 6 US BORDERS SERVED

9 PORTS SERVED

NTKM MOVED 2014 52 MM

27,485 RAIL CARS

10,021 EMPLOYEES 1.3MM CARLOADS MOVED 2014

Ferromex Statistics

VOLUME 1998 2015E %VAR

TONS - KM 14,155 53,862 +281%

CARLOADS 432 K 1,3 MM +215%

Ferromex: Performance Summary

8.2% CAGR in NTK

1998 2014

CUM. INVESTMENT MMUSD

$89.5 $5,032

MARKET SHARE 44% 65%

CROSS BORDER VOLUME (SHARE)

23% 51%

Ferromex: Performance Summary

17% Market Share in the Total Land Freight Transport

OF TRACK REBUILT

80%

CAPITAL EXPENDITURE

$5.2 BILLION INVESTED AS CAPEX

27.5% of total revenue

HORSE POWER CAPACITY

+162%

Ferromex: Investments

Investment has been the key to modernize the largest Railroad in Mexico

Ferromex Statistics

Since privatization

Source: U.S. Census Bureau (2002 – 2011) and Association of American Railroad

Ferromex has invested 27.5% of the total revenues

Significantly above class 1’s and most industries

Ferromex: Investments

GROSS TON-KM +186%

FUEL PRODUCTIVITY +33%

GROSS TON PER TRAIN +52%

ACCIDENTS RATE -97%

Operating efficiencies key to our development

Ferromex: Improvements

Ferromex Statistics

Productivity per Locomotive Millions tons - Km per Locomotive

Source: Inter-American Development Bank, 2013 OECD: Organization for Economic Cooperation and Development

The most productive Railroad in Latin America

Productive Transportation System

USD

Cen

ts P

er T

on

-Kilo

met

er

Efficient Transportation System

The most competitive Railroad in Latin America

Source: Inter-American Development Bank, 2013 OECD: Organization for Economic Cooperation and Development

Ferromex

The future

Ferromex Projections

Five – Year Projections

Ferromex Statistics

(mm of Tons - Km) 2015E 2016E 2017E 2018E 2019E

Net Tons - Km 53,862 57,686 59,994 62,813 64,384

Net Tons - Km Growth 7.1% 4.0% 4.7% 2.5%

(US$ mm)

Revenues 1,950$ 2,137$ 2,319$ 2,490$ 2,640$

Revenue Growth 9.6% 8.5% 7.4% 6.0%

Operating Ratio 71.9% 71.0% 70.2% 69.5% 68.9%

EBITDA 710$ 791$ 886$ 974$ 1,056$

% Margin 36.4% 37.0% 38.2% 39.1% 40.0%

73%

67%45% 54%

54%

14%

21%

40% 33%

34%

8%

5%

2% 3%

2%

5%

6%

12% 10%

9%

411.4

512.5

461.4 467.2

381.7

2015 2016 2017 2018 2019

INFRAESTRUCTURA EQUIPO TELECOMUNICACIONES OTROS

CAPEX: USD$2,2 Billion 2015 - 2019

EQUIPMENT TELECOMUNICATION INFRASTRUCTURE OTHERS

CAPEX Plan 2015 -2019

Ferromex Statistics

Ferromex Potential

McKinsey & Company confirms Ferromex has a market potential especially in

finished product segments like automotive, industrial products and intermodal

FXE market share

Automotive

Relevant market size: 2,578,000 VINS(1)

64.9%

35.1%

Growth opportunity

FXE market share

Industrial Products

Relevant market size: 32,280,000 MT

41.0%

29.5%

70.5%

Growth opportunity

Relevant market size: 3,499,000 containers

87.8%

Intermodal

43.8% 12.2%

FXE market share Growth opportunity

FXE market share Growth opportunity

Cement

Relevant market size: 20,261,000 MT

41.0%

59.0%

VINS (Vehicle Identification Number)

McKinsey & Company, 2013

2,000,000

Ferromex is a crucial component in the Mexican Automotive Industry

We move 64% of total automotive production served by FXE

Ferromex Potential: Automotive Industry

13.2%

Global automotive players will set-up new production facilities in Mexico

2014 2017

Ferromex Potential: Automotive Industry

INTERMODAL 2015 2019 %VAR

CROSS BORDER 117K 144K 23%

INTERPACIFIC 23K 47K 104%

MARITIME 200K 342K 71%

TOTAL 340K 533K 56%

Ferromex Potential: Intermodal

2015 -19

12% CARG

Ferromex

The largest Railroad in Mexico

Transformation

Transformation