1 st Quarter 2017 Results

Transcription

1 Investment that Transforms 1 st Quarter 2017 Results INVESTOR RELATIONS Ignacio Gutiérrez / CFO ig@fhipo.com Xavier Martínez / IRO xm@fhipo.com inverstorrelations@fhipo.com Ph: +52 (55) [ENGLISH TRANSLATION FOR INFORMATION PURPOSES ONLY, IN THE EVENT OF ANY CONFLICT, THE SPANISH TEXT SHALL PREVAIL]

2 Index Performance and achievements during the quarter Mexican mortgage market Mortgage origination programs Portfolio composition - 1Q17 Performance of our CBFIs - 1Q17 Leverage strategy Financial results & key metrics Risk assessment Our outlook Financial statements - 1Q17 2

3 1. Performance and achievements during the quarter

4 Performance and Achievements during the 1Q17 These were FHipo s achievements during the 1 st quarter of 2017 FHipo started its share buyback program during 1Q17 Development of our ROE (1) since our IPO (November 2014) Outstanding CBFIs as of 4Q16 Outstanding CBFIs: Outstanding CBFIs as of 1Q17 Outstanding CBFIs: 11.3% 11.2% Follow-on Equity Offering Covered Bond 469,515, ,894, % During the 1Q17, FHipo acquired 15,620,764 CBFIs at a weighted avg. price of $22.47 per CBFI. 8.6% 9.0% 8.3% 8.3% 8.7% 8.8% FHipo, by acquiring its own CBFIs at a discount (below book value) reduces its outstanding CBFIs and increases the dividend distributed to its CBFI holders. 4.8% 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Transitional Quarters FHipo completed a Long-Term Covered Bond Public Offering Evolution of our Leverage Strategy (figures in millions of pesos) Second issuance of long-term covered Bond. (figures in millions of pesos) 2,276 13, ,3 95 Amount Ps. $900 Source: FHipo Reports. Long-Term Debt Issuance Ps. $900 Fixed Rate 8.78% March 2017 Interest Rate 8.78% Fixed (2) Term 5 years (3) 900 FHIPO17 (LT) 3,000 FHIPO16 (LT) 2,205 CDVITOT 4,724 2, Banorte Santander ST Bonds WF 1 & 2 WF Amount Available Amount Issued / Withdrawn (1) Annualized considering the average equity during the year. (2) Bond pays semi-annually fixed coupons during the first 10 interest payments (semi-annual payments). (3) Amortization due at the tenth semi-annual coupon period, if amortization is not carried out, full turbo amortization with recourse to the collateral mortgage portfolio. (4) Considering on and off balance leverage. Debt 1.2x D/E (4) Equity Off-Balance On-Balance 4

5 2. Mexican mortgage market

6 Occupation, Employment and Mortgage Rates in Mexico The population contributing to the Mexican Social Security Institute (IMSS) has increased steadily in recent years, while unemployment rate has remained low and continues its positive trend. Progressive increase in the formal economy and downward unemployment tendency (Insured workers in 000s and unemployment as % of Economically Active Population) 19,500 18,000 16,500 15, % 7.0% 5.0% 3.0% 1.0% Jan-13 Aug-13 Mar-14 Oct-14 May-15 Dec-15 Jul-16 Feb-17 Source: IMSS and INEGI. Insured Workers Unemployment (1) Behavior of the Mortgage Interest Rates (Private Sector) (Average TAC of loans in fixed interest rate of Banks and Sofoles) 15.00% 14.00% 13.00% 12.00% 11.00% 10.00% 9.00% 8.00% Jun-10 Oct-11 Feb-13 Jun-14 Oct-15 Feb-17 Interest Rate charged by Infonavit and Fovissste (Interest rate charged depending on borrower s income level) 16.00% 15.00% 14.00% 13.00% 12.00% 11.00% 10.00% 9.00% Source: Bank of Mexico. Nominal Interest Rate Real Interest Rate (2) (1) (2) Infonavit VSM Infonavit Pesos Fovissste VSM (1) Most loans denominated in Pesos have a fixed nominal interest rate of 12.0% (2) Assumes a VSM increase, equivalent to increase in UMA (Inflation). 6

7 Infonavit s Mortgage Loan Origination Infonavit expects to originate ~376 thousand loans per year for the next five years (2017 to 2021), which translates in a CAGR ( 16 21) of 7.0% Infonavit s mortgage loan origination (number of loans, granted for the acquisition of a new or used home) 364, , , , , ,500 56,046 59,500 61,000 62,500 64,000 65,000 75,110 84,500 86,500 89,000 91,000 92,500 24,720 26,000 27,000 27,500 28,000 28,000 FHipo s target sector Infonavit s projected mortgage portfolio registered within its balance (billions of pesos in mortgage loan portfolios, nominal values) $1,172.5 $1,259.3 $1,348.0 $1,441.8 $1,542.9 $1, ,036 85,000 85,000 88,000 90,000 90, , , , , , , > than 10 VSM 5 to 10 VSM 4 to 5 VSM 2.6 to 4 VSM < than 2.6 VSM Income Range in VSM Source: Infonavit (Financial Plan ) Number of mortgage loans originated from 2010 to 2015 (in 000s of loans) Number of Mortgage Loans originated Origination Type of Housing Annual Subtotal Mejoravit Total Date New Used Change % % % % % % % Source: Infonavit (Financial Plan ) Evolution of beneficiaries who qualify for a mortgage loan ( ) and % of those who request a loan (in 000s of beneficiaries) 5,500 5,000 4,500 4,000 3,500 3, Source: Infonavit (Financial Plan ) 4,668 4,442 4,746 4, % 10.1% 10.0% 10.7% 4,440 4,882 5, % 13.7% 11.0% 5, % Beneficiaries who qualify Source: Infonavit (Financial Plan ) Infonavit's total mortgage loan portfolio Qualified beneficiaries who request a loan 25.00% 20.00% 15.00% 10.00% 5.00% 7

8 Fovissste s Mortgage Loan Origination Fovissste expects to originate ~40 billion pesos worth of mortgages annually (amounts in billions of pesos) Fovissste Loans: Projected Total Origination Distribution of Fovissste s originated portfolio 0.5% 1.7% 2.0% 5.6% 19.6% 12.1% 58.6% During 2015, 58.6% of the loans originated by Fovissste were granted through the traditional program 2016E 2017E 2018E 2019E Source: FOVISSSTE (Annual Activity Report 2015) Traditional Subsidy Pensioner 2 Fovissste -Infonavit conjugal Alia 2 plus Support 2 Support 2M Source: FOVISSSTE (Annual Activity Report 2015) External Financing (TFOVI Issuances) Historic mortgage loan origination (amounts in billions of pesos) (amounts in billions of pesos) Annual Average = = = = = TFOVI 13U TFOVI 13 2U TFOVI 13 3U TFOVI 14U TFOVI 14 2U TFOVI 14 3U TFOVI 15U TFOVI 15 2U TFOVI 16 U Issued Amount Annual Average ( ) Originated loans in thousands Originated amount in billions of pesos Source: BMV. Source: FOVISSSTE (Annual Activity Report 2015) FOVISSSTE aims to continue granting loans and satisfying the demand for credit for more than 100,000 (1) workers at the service of the State (1) Source: ISSSTE Statistical Yearbook

9 3. Mortgage origination programs

10 FHipo currently participates in the following mortgage origination programs: Program Characteristics Income Level 4.5 VSM onwards 3.5 VSM to 5.0 VSM 1.0 VSM onwards Target Destination Borrower s Age Maximum Loan Amount Interest Rate Term Maximum LTV at Origination Maximum PTI at Origination Collection Home acquisition (guaranteed by a valid mortgage) years 729 VSM s ~ USD $88,052 (1) 156 VSM s ~ USD $20,411 (1) 745 VSM s ~ USD $97,474 (1) N/A 8.50% % (VSM) 12.00% (Pesos) 12.00% (Pesos) 10.8% (interest rate is auctioned) 5.0% 6.0% (VSM) Up to 30 years 95% 90% 95% 95% 30% - 32% (2) 28% - 30% (2) N/A Eligibility Criteria Collection through payroll deduction Additional Program s Criteria Source: Infonavit. The borrowers must have a minimum income of 4.5x VSM The borrowers must have been employed for at least 2 years at their current job Loans originated by Infonavit before July 2014 are denominated in VSM and the loans originated subsequent to that date are denominated in Pesos The borrowers must have a minimum income of 3.5x VSM and maximum of 5.0 VSM The loans feature a first loss / credit insurance if they have an LTV greater than 50% Borrowers must have settled its original loan 6 months beforehand, with a solid history of payment. The borrowers must have been employed for at least 2 years at their current job No more than 10% of the portfolio can have borrowers with an income level below 4 VSM. Borrowers must have sustained an employment for al least 6 months Mortgage loans have to be current, without non-payments, carryovers or in risk of extension FOVISSSTE, sole and legitimate owner of the assigned loan portfolio Note: VSM means times minimum wage, which is the index calculated by multiplying the current daily minimum wage ( Ps$75.49) by the average number of days in a month, each year (30.4 days). (1) Assumes a FX MXN $19.0 per USD$. (2) 30%/28% if house does not have eco-technology, and 32%/30% for houses with eco-technology. 10

11 4. Portfolio composition - 1Q17 As of March 31 st, 2017

12 Consolidated Portfolio Composition as of 1Q17 Summary of FHipo s consolidated portfolio characteristics (Infonavit and Fovissste (1) ) (loan balance as of March 31 st, 2017) FHipo - Consolidated Portafolio (Infonavit and Fovissste (1) ) Total Balance (FHipo's Participation) Ps. $23,063 million (2) Total Number of Loans: Infonavit and Fovissste (1) 77,041 Average Co-participated Loan Balance by Mortgage Loan Ps. $299,357 (2) Loan-to-Value at Origination (LTV) (3) 76.13% Payment-to-Income (PTI) (3) 24.84% Current Portfolio 99.25% (576 non-performing loans) By Mortgage Origination Program Infonavit Total Portfolio Balance (VSM (4) and Pesos) Number of Loans (VSM (4) and Pesos) 54,661 Portfolio Balance denominated in VSM (4) Number of Loans denominated in VSM (4) 23,431 (3) (4) Average Interest Rate of loans denominated in VSM 9.57% Portfolio Balance denominated in Pesos Ps. $12,823 million Ps. $5,628 million in VSM Number of Loans denominated in Pesos 31,230 Average Interest Rate of Loans denominated in Pesos Infonavit Más Crédito Portfolio Balance Number of Loans 15,012 Average Loan Interest Rate Fovissste (1) Portfolio Balance denominated in VSM (4) Number of Loans 7,368 (3) (4) Average Interest Rate of loans denominated in VSM 5.38% Ps. $7,195 million 12.00% (Nominal) Ps. $7,316 million 10.80% (Nominal) Ps. $2,924 million in VSM Note: Consolidated figures consider Infonavit s on and off balance portfolio and the collection rights on Fovissste s portfolio. Consolidated figures are solely for informative purposes. (1) Fovissste s portfolio represents, through trust certificates, the collection rights on the listed mortgage loan portfolio. (2) Refers to FHipo s outstanding portfolio balance, excluding accrued interest and indexation on loans denominated in times minimum wage (VSM). As of March 31 st 2017, FHipo co-participates 70.1% (weighted average) of each mortgage loan. (3) Weighted average by Total Balance. (4) The interest rate on loans denominated in VSM is indexed to the increase in the UMA. 12

13 Infonavit s and Fovissste s mortgage portfolio characteristics Infonavit s mortgage portfolio characteristics (Infonavit Total and Más Crédito) Distribution by borrower s salary in VSM at loan origination date Distribution by interest rate in VSM (1) (as % of total loans within Infonavit s portfolio) (as % of total loans within Infonavit s VSM portfolio) < % 25.2% 23.3% 46.4% 28.2% % > % 5.1% 5.4% 6.3% 19.0% 8.50% 8.6% - 9.0% 9.1% - 9.5% 9.6% % Infonavit Total Pesos 12.0% nominal Infonavit Más Crédito 10.8% nominal Fovissste s (2) mortgage portfolio characteristics Distribution by borrower s salary in VSM at loan origination date Distribution by interest rate in VSM (1) (as % of total loans within Fovissste s portfolio) 0.3% (as % of total loans within Fovissste s VSM portfolio) 54.6% < % 17.2% 28.2% > % 5.00% 5.50% 6.00% (1) The interest rate on loans denominated in VSM is indexed to the increase in UMA. (2) Fovissste s portfolio represents, through trust certificates, the collection rights on the listed mortgage loan portfolio. 13

14 State of Mexico Nuevo León Jalisco Veracruz Guanajuato Coahuila Querétaro Chihuahua Baja California Tamaulipas Distrito Federal Hidalgo Quintana Roo Sonora Puebla Others Consolidated mortgage portfolio characteristics (as % of total loans within consolidated portfolio) Distribution by Loan-to-Value (LTV) at loan origination date Distribution by borrower s salary in VSM at loan origination date Distribution by origination program 37.2% 25.9% 20.9% 16.0% 65 % % % 85-95% 31.7% 4.0% 4.7% 5.2% 6.1% 28.3% 20.0% < > % 24.4% 31.7% 12.7% Infonavit Total VSM Infonavit Total Pesos Infonavit Más Crédito (2) Fovissste Geographic distribution of the portfolio Distribution by loan balance (1) on and off balance Distribution by Interest Rate (Real vs. Nominal) 22.1% 12.5% 11.0% 6.7% 6.1% 4.9% 4.7% 4.5% 4.1% 4.0% 3.6% 3.5% 3.3% 3.1% 3.0% 2.9% Total Loan Balance Ps. $23,063 million 10.9% 89.1% 62.9% 37.1% Loans denominated in Real Terms Loans denominated in Nominal Terms + - Concentration Level RMBS (CDVITOT 15U and 15-2U) On-Balance Mortgage Portfolio and Collection Rights Note: Consolidated figures consider Infonavit s on and off balance portfolio and the collection rights on Fovissste s portfolio. Consolidated figures solely for informative purposes. (1) The interest rate on loans denominated in VSM is indexed to the increase in UMA. (2) Fovissste s portfolio represents, through trust certificates, the collection rights on the listed mortgage loan portfolio. 14

15 5. Performance of our CBFIs - 1Q17

16 Performance of FHipo s CBFIs during the 1Q17 and Analysts Coverage FHipo s Certificados Bursátiles Fiduciarios Inmobiliarios (CBFIs) performance during the 1Q17 # of CBFIs 20,000,000 16,000,000 12,000,000 8,000,000 4,000,000 Average Price $ Average Volume 1,883,777 FHipo announces an additional withdrawal to the first credit facility signed with Banorte for Ps. $950 million FHipo announces the closing of a hedge agreement on MBONO 12/05/24 with strike rate of 7.60% FHipo announces movements to the management team of its advisor and manager FHipo announces movements in its Technical Committee FHipo announces closing of a public offering of CBFs for a total amount of Ps. $900 million FHipo informs the payment of the distribution corresponding to the 4Q16 will take place MXN $ Jan Jan Jan Feb-17 2-Mar Mar-17 1-Apr Apr-17 Source: Bloomberg, as of April 21, Equity Research Analysts Coverage Volume CBFIs Price 21 Institution Equity Research Analyst Current Recommendation Current Target Price (1) Credit Suisse Vanessa Quiroga Out-perform Ps. $30.00 per CBFI Morgan Stanley Nikolaj Lippmann Equal-weight Ps. $25.00 per CBFI Nau-Securities Iñigo Vega Fairly Valued Ps. $26.70 per CBFI Santander Cecilia Jimenez Buy Ps. $27.00 por CBFI (1) Target Price, 12 months forward-looking from recommendation date. 16

17 6. Leverage strategy

18 Diversified Sources of Funding FHipo has achieved financing through different types of leverage structures, through private institutions and the local debt market. Below we display the main factors of these financial structures. Diversified Funding Securitizations Issuance of securities/certificates backed by a trust which guarantees the issuance, whose equity structure consists of mortgage loans Long-Term Covered Bonds Issuance of securities/certificates backed by (i) FHipo s balance sheet, and (ii) a collateral trust consisting o mortgage loans, which guarantees the issuance. Short-Term Unsecured bonds Issuance of securities/certificates backed by FHipo s Balance Sheet Warehousing Facilities Credit facility conceded by a private entity, backed by a mortgage portfolio Competitive Funding rates 7.00% 7.00% Long-Term Funding 8.78% 8.47% 8.78% UDI LT Bond 1 LT Bond 2 CDVITOT 15U/15-2U 7.91% 8.28% 2.91% 2.05% 1.90% Short-Term Funding 5.86% 6.38% 6.38% 6.38% Banorte C.Facilities Santander C.Facility 7.17% 7.08% 0.79% 0.70% 1st ST Bond 2nd ST Bond Fixed Rate SWAP (1) Spread/Margin UDI Average TIIE 1Q17 Vencimiento Debt maturity de schedule la Deudas al of 2T16 1Q17 Maturity Date (amortization) Short-Term Bond (FHipo 00216) Bullet (May 2017) Short-Term Bond (FHipo 00116) Bullet (April 2017) Long-Term Bond (FHIPO 16) Bullet 2021 Amortization according to portfolio collection Long-Term Bond (FHIPO 16) Bullet 2022 Amortization according to portfolio collection Santander Credit Facility Legal term: 2046 Banorte Credit Facilities Legal term: 2025, 2026 (revolving) CDVITOT 15U and 15-2U Amortization in accordance with securitized portfolio collection Our long-term financing with scheduled amortizations can be 100% settled on a certain date, or in its case, amortized in accordance with the collection of the guaranteed assets (mortgage portfolio). Development of our on-balance leverage (consolidated debt, figures in billions of pesos) Securitizations (RMBS) Long-Term Bonds Credit Facilities Short-Term Bonds $4.4 $5.3 $8.2 $9.9 $11.6 $13.4 $2.6 Debt to Equity Ratio (on balance) = 0.0x 0.21x 0.31x 0.48x 0.63x 0.81x 1.0x (2) 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Source: FHipo, Bloomberg and Bank of Mexico. (1) SWAP: Notional principal of Ps. $3,000 mm (as of 1Q17 FHipo has withdrawn Ps. $4,724 mm through its Banorte s warehousing facilities). (2) 1.2x (Debt/Equity) considering off balance leverage. 18

19 Funding Structure as of 1Q17 Funding Structure (figures in million of pesos) Source of Funding Type of Funding Benchmark Rate Margin Maximum amount Amount Withdrawn Maturity Date / Duration CDVITOT 15U Securitization UDIBONO 2019 (1.80%) +100 bps - $1,892 (1) Financial Duration: 2019 CDVITOT 15-2U Securitization UDIBONO 2020 (2.22%) +190 bps - $231 (1) Financial Duration: 2020 Credit Facility Banorte No. 1 Warehousing Line TIIE bps (2) $5,000 $3,100 Legal Term: 2025 (Revolving) Credit Facility Banorte No. 2 Warehousing Line TIIE bps (2) $2,000 $1,624 Legal Term: 2026 (Revolving) Credit Facility Santander Warehousing Line TIIE pbs (2) $2,000 $2,000 Legal Term: 2046 Short-Term Bond FHIPO Unsecured Bond TIIE bps - $ Short-Term Bond FHIPO Unsecured Bond TIIE bps - $ Long-Term Bond FHIPO 16 Covered Bond Fixed Rate = 7.00% - - $3, / Legal Term: 2051 Long-Term Bond FHIPO 17 Covered Bond Fixed Rate = 8.78% - - $ / Legal Term: 2052 Market Risk 100% of our long-term debt is structured to match the duration of our mortgage loans. i. During the 3Q16, FHipo realized the first issuance of a long term covered bond in the Mexican market, the bond pays a fixed rate, and has a collateral trust guaranteeing its amortization in the event that the issuer does not have the necessary liquidity. ii. On our long-term funding, other than securitizations or fixed coupon bonds, we have secured fixed interest rates through SWAP operations, avoiding for a portion of our portfolio a mismatch between floating vs. fixed rates. iii. Our securitization is comprised of times minimum wage (VSM) denominated mortgage loans, which are indexed to inflation (UMA). The coupon rate, of both the senior and subordinate tranche, are indexed to UDI, therefore, both the asset and borrowing rates are indexed to inflation (matching currency), securing a financial margin during the term of the structure. Leverage Ratio We seek to continue developing, in a gradual manner, our leverage strategy during the upcoming quarters. While it is true that the regulatory limit leverage is assets / equity securities 5, the holders assembly approved financing in the following terms. LEVERAGE TARGET (3) Debt / Equity 2.5 1Q17 1.0x (4) gradual increase 2.5x (1) Outstanding Balance. (2) Banorte Facilities: 25 bps Step-Up once completion of 12 month period, subsequent to initial withdrawal. Santander Facility: 25 bps Step-Up once completion of 24 month period, subsequent to initial withdrawal. (3) Limit approved by the Holders Assembly on June 29 th (4) Considering off balance leverage 1.2x (Debt/Equity). 19

20 Methodology and calculation of leverage and liquidity ratios (CNBV) for mortgage REITs Leverage limit methodology and calculation (CNBV) for Mortgage REITs in Mexico Regulation applicable for Development or Real Estate Trust Certificates (CBFIs) in which the trust assets are mainly intended to grant credits, loans or financing, and additionally intend to contract loans or credits (1) : Leverage = Total Assets Equity Securities 5 Result as of the 1Q x (2) Source: CNBV, Annex AA from the Consolidated Letter of Securities Issuers. Where: Total Assets Equity Securities Sum of all accounts within the company s balance sheet statement. Book value of all of a company's outstanding shares, calculated at quarters end. Methodology used to calculate the debt service coverage ratio (ICD, by its Spanish acronym) for Mortgage REITs in Mexico (CNBV) Regulation applicable for Real Estate Trust Certificates (CBFIs) : ICD t = 6 AL 0 + t=1 UO t + LR 0 6 t=1 I t + 6 t=1 P t + t=1 6 K t 1 Result as of the 1Q x (2) Source: CNBV, Annex AA from the Consolidated Letter of Securities Issuers. Where: ICD t Coverage of debt servicing ratio at the end of quarter t. AL 0 Liquid assets at the end of the quarter 0 (this is at the end of the quarter being reported), including cash and investments in securities, but not restricted cash. UO t Estimated operating income after payment of scheduled distributions and any other distribution of the quarter t. LR 0 Current revolving credit lines, irrevocable and unwithdrawn lines as of quarter 0. I t Estimated interest amortizations derived from debt for the quarter t. P t Scheduled debt principal amortizations for the quarter t. K t Recurring Capex estimated for the quarter t. (1) It is understood as preponderance if at least 70% of the assets of the trust are intended to provide credit or financing. (2) Calculated with financial information as of 1Q17. 20

21 Exceptional Asset Quality In this slide we illustrate the development of our non-performing loans, along with the allowance for loan losses ratio compared to our portfolio s expected loss. Stable levels of Non-Performing Loans (NPLs) with conservative allowance for loan losses 1.20% 1.00% 0.93% 0.91% 0.99% 1.07% 1.01% 1.14% 0.80% 0.60% 0.40% 0.20% 0.00% 0.75% 0.52% 0.45% 0.86% 0.68% 0.60% 0.49% 0.36% 0.09% 0.00% 0.04% 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Allowance for Loan Losses / Portfolio NPL's / Portfolio Expected Loss: ~44 bps Non-Performing Loans: 86 bps Loss Given Default of 51.4% (2) Allowance for loan losses 1.14% (0.86% * 51.4%) Coverage 2.6x Allowance for loan losses 1.14% 0.86% Coverage 1.3x Expected Loss Non-performing loans Source: FHipo s Quarterly Financial Reports. (1) FHipo did not generate allowance for loan losses in 4Q14, FHipo started creating allowance for loan losses in accordance with IFRS in (2) Historical information Infonavit and Fovissste (CEDEVIs and TFOVIs). 21

22 Attractive risk-return profile FHipo s Estimated Financial Margin (Asset Yield vs. Debt Cost) as of the 1Q17 Having considered the recent increases of the Mexican benchmark interest rate and our liabilities at fixed rates, we continue to have an attractive margin. Our assets continue to have competent yields, and this coupled with competitive long term debt cost continue to establish FHipo as a very attractive investment for its investors. Below a detailed analysis of our financial margin as of 1Q17: Attractive Asset Yield of our origination programs Competitive Long-Term funding rates Long-Term Funding Short-Term Funding 10.80% 10.80% 12.00% 12.00% 15.06% 5.56% 9.50% 10.96% 5.56% 5.40% 7.00% 8.78% 8.47% 7.91% 8.28% 7.17% 7.08% 7.00% 8.78% UDI 5.86% 6.38% 6.38% 6.38% Infonavit Más Crédito (Pesos) VSM increase (1) Infonavit Total (Pesos) Infonavit Total (VSM) Interest Rate of the Asset Fovissste (VSM) LT Bond 1 LT Bond 2 RMBS (CDVITOT) Banorte C.Facilities Santander C.Facility 1st ST Bond 2nd ST Bond Fixed Rate SWAP (1) Spread/Margin UDI Average TIIE 1Q % Fovissste 1.4% Inf MC 3.4% Financial Margin 4.1% 7.73% Attractive Asset Yield Inf Total 7.0% RMBS 1.3% ST Bonds 0.4% LT Bonds 2.1% Competitive Debt Cost C. Facilities 4.1% Weighted Asset Yield Financial Spread/Margin Weighted Debt Cost Attractive financial margin between Asset Yield and Debt Cost Source: Infonavit, Fovissste and FHipo s quarterly reports. (1) SWAP with notional amount of Ps. $3.0 bn, at 5.56% (FHipo pays fixed and receives variable rate). (2) VSM = UMA (estimated inflation for 2017 of 5.56%). 22

23 7. Financial results & key metrics

24 Solid financial results in 1Q17 P&L Summary at 1Q17 P&L figures in Ps. 000s, except the Net Income per CBFI 1Q17 1Q16 (+) Interests on mortgage loans $556,979 $299,345 (+) Investment income 13,939 2,498 (-) Financing interest expenses (206,572) (33,477) (-) Allowance for loan losses (46,691) (1,862) (+) Valuation of receivable benefits in securitization transactions 32,224 31,274 (-) Operating expenses (106,424) (70,164) Income from assets on balance which include the collection rights on Fovissste s portfolio, reached Ps. $557.0 million, an increase of 86.1% in comparison with the same period of the previous year. We achieved a Net Income in the 1Q17 of Ps. $243.5 million, according to our distribution policy (95% of Results), the Net Income to be distributed is of Ps. $231.3 million....with a Net Income per CBFI (EPS) in the 1Q17 of Ps. $0.536 (3) and an expected distribution per CBFI of Ps. $0.510 in accordance with our distribution policy. Net Income $243,455 $227,614 Net Income per CBFI $0.536 $0.660 Balance Sheet Summary Balance Sheet figures in Ps. 000s 1Q17 Cash and investments in securities $939,809 Mortgage loans, net (4) 17,718,411 Collection rights, net 2,976,710 Receivable benefits in securitization transactions 536,243 Derivative financial instruments 107,639 Accounts receivables and other assets 440,362 Total Assets $22,719,174 Accounts payables and accrued expenses $240,474 Notes Payable 4,522,643 Financing 6,631,338 Total Liabilities $11,394,455 Total Equity $11,324,719 Total Liabilities + Equity $22,719,174 ROA (1) : 4.6% ROE (2) : 8.8% EPS in Ps. of $0.54 (3) (1) (Net Income / Total Assets average of the period), annualized considering 90 effective days of operation in the 1Q17. (2) (Net Income / Total Equity average of the period), annualized considering 90 effective days of operation in the 1Q17. (3) Considering the outstanding CBFIs at the end of 1Q17 (453,894,236). (4) Includes principal, accrued interests, indexation on loans in VSM, and allowance for loan losses. 24

25 Yield of our CBFIs and Invested Capital The following charts illustrate the yield per CBFI for the 1Q17 and the yield of the invested capital since November FHipo s Distribution and Yield Distribution and yield on the issuance price of the CBFI at 1Q17 1Q17 EPS (Ps./CBFI) (1) $0.536 Issuance Price - IPO (Ps.) $25.00 Number of Outstanding CBFIs as of 1Q17 453,894,236 Return on Invested Capital (calculation of accumulated yield since November 2016) Accumulated Distributions (4) Effective Days Invested Capital as of 1Q17 (5) Ps. $464.6 million 182 days Ps. $11,586.5 million Period: 1Q17 Annualized distribution on Equity as of 1Q17 (%): 8.04% (6) 95%, Estimated Distribution Ps. $ million (2) Yield on price of CBFI (IPO) at 1Q % (3) (1) Net Income / # CBFIs (outstanding at the end of 1Q17). (2) Should be divided by the outstanding CBFIs at ex-dividend date. (3) Annualized (compounded) considering 90 effective days in operation in the 1Q17 and outstanding CBFIs at the end of 1Q17 (453,894,236). (4) Accumulated distributions since 4Q16. (5) Invested capital results from deducting the expected distribution of the 1Q17 results and adding the IPO expenses from FHipo s total equity at the end of the 1Q17. (6) Annualized considering 182 effective days since the 4Q16 and calculated in accordance with the administration s trust agreement. 25

26 Our Key Metrics and Relevant Financial Information in 1Q17 Main Financial Metrics Quarter to Quarter Year to date Figures are presented according to each metric (%, $) 1Q17 1Q16 1Q17 1Q16 Financial Margin and Interest Revenues Financial Margin - "interest revenue - interest expense / total interest revenue" 63.8% 88.9% 63.8% 88.9% Net Interest Margin (NIM) (1) - "total revenues, net / average net mortgage loans" 6.7% 10.7% 6.7% 10.7% Efficiency Metrics Efficiency Ratio - "total expenses / total revenue" 30.4% 23.6% 30.4% 23.6% Total Expenses / Gross Income 17.6% 21.1% 17.6% 21.1% Allowance for loan Losses / Total Mortgage Loans (2) 1.14% 0.91% 1.14% 0.91% Returns and Profits Earnings per CBFI (EPS) (3) - "net income / number of CBFIs" $0.536 $0.660 $0.536 $0.660 Return on Assets (ROA) (1)(4) - "net income / total assets" 4.6% 8.4% 4.6% 8.4% Return on Equity (ROE) (1)(5) - "net income / total equity" 8.8% 11.2% 8.8% 11.2% Other Metrics Non-performing Loans / Net Portfolio 0.86% 0.36% 0.86% 0.36% Note (1): Annualized considering effective days of operation in the period and net mortgage loans average during the period (2): Total mortgage loans excludes allowance for loan losses. (3): Amount in Mexican Pesos. (4): Considers the average total assets during the quarter. (5): Considers the average total equity during the quarter. We closed the 1Q17 with a Financial Margin of 63.8%...a Net Interest Margin (NIM, year to date) as of 1Q17 of 6.7%......with a Total Expense / Gross Income ratio as of 1Q17 of 17.6%... a ROE as of 1Q17 of 8.8% and with a Non-Current Portfolio (on-balance) of 0.86%. 26

27 8. Risk assessment

28 Risk Assessment 1. Credit Risk As of 2015, FHipo determines the allowance for loan losses through the expected loss method, 12 month forward-looking.. In accordance with the internal methodology for the calculation of probability of default, considering a loss given default of 49.6% (1) for Infonavit Total and Infonavit Más Crédito, 36.9% (2) for Infonavit 3.5 VSM and 84.0% (3) for Fovissste, and a loan exposure (outstanding balance on date of analysis), the expected loss was calculated by using the following formula: = EL i PD i LGD * * EXP i Where: EL i : Expected Loss loan i PD i : Probability of Default loan i LGD: Loss Given Default (49.6% / 84.0%) EXP i : Loan i Exposure (Outstanding balance on date of analysis) EL Total = Ps. $216.3 million It is worth to mention that for those loans in extension, an additional Probability of Default is applied depending on the number of periods each of these loans has been in this regime. As of 1Q17 (March 31 st, 2017), the 12 month forward-looking expected loss for FHipo s portfolio was Ps. $216.3 million. (1) Based on statistic historic information from Infonavit. (2) Based on FHipo s statistical analysis (considers loans first loss insurance). (3) Based on public information of TFOVIS Securitizations. 28

29 Risk Assessment (Cont.) 2. Market Risk As of March 31 st, 2017, the VaR is of Ps. $0.00 pesos (since there were no investments in securities). We determined the VaR considering: 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1. The use of historical method. 2. We considered a 99% confidence level for 10 days. 3. Our Market VaR limit is established at 1.00% of FHipo s equity. 4. The consumption limit is calculated as the VaR divided by the established limit. Market Risk 4Q16 Ps. Million VaR (Value At Risk) 0.00 Established Limit Consumption Limit 0.00% Limit $ Ps. Million 0.00% Limit Consumption Confidence level 99% 1.0% FHipo established the confidence limit of its investments in securities as 1% of FHipo s equity as of the date of valuation. 3. Liquidity Risk As of the 1Q17 we had repurchase agreements, with maximum maturity of less than a year which amounted in Ps. $939.7 mm, additionally we have Ps. $2, mm available though the Warehousing Lines, so we do not have any liquidity risk in the short term. By the end of 1Q17, FHipo had liabilities which amounted in Ps. $11,394.5 mm, however, this amount only represents 50.2% of the assets on FHipo s Balance, and 92.2% of those liabilities does not have any payment due for the next 24 months. 1 Our Market VaR limit is established at 1.00% of FHipo s equity 29

30 9. Our outlook

31 Guidance - Outlook 1 FHipo FHipo has delivered on all goals and objectives established since its IPO: Equity deployment, mortgage diversification, profitability, credit quality and efficient leverage strategy we plan to continue with such positive trend during FHIPO S PORTFOLIO FHipo will continue growing its portfolio through Infonavit s mortgage origination (mortgage loans from other institutions will be originated only if the asset yield generates financial margin to fulfill FHipo s current business plan). 3 LEVERAGE STRATEGY As we continue to work on our debt financing programs, and under current market conditions, we expect to lower our origination pace and focus primarily in achieving attractive financial spreads even if this means growing at a more conservative pace. 4 DISTRIBUTIONS We expect to continue distributing a constant dividend yield during

32 10. Financial Statements - 1Q17

33 Financial Statements Balance Sheet Balance Sheet 1Q17 (figures in 000s of MXN pesos) 1Q17 1Q16 Variation % Var ASSETS Cash and cash equivalents $939,715 $468,451 $471, % Debt securities N/A Current mortgage loans 17,471,456 9,884,856 7,586, % Past due mortgage loans 146,049 34, , % Accrued interest 271, , , % Indexation on mortgage loans 32,561 28,324 4, % Allowance for loan losses (203,435) (91,658) (111,777) 122.0% Mortgage loans, net 17,718,411 9,996,135 7,722, % Collection rights, net 2,976, ,976,710 N/A Receivable benefits in securitization transactions 536, , , % Derivative financial instruments 107, ,639 N/A Accounts receivables and other assets 440, ,972 49, % TOTAL ASSETS $22,719,174 $11,256,743 $11,462, % LIABILITIES Accounts payables and accrued expenses $240,474 $136,739 $103, % Notes/securities payable 4,522, ,522,643 N/A Borrowings 6,631,338 2,610,980 4,020, % TOTAL LIABILITIES $11,394,455 $2,747,719 $8,646, % EQUITY Common stock, net $10,892,714 $8,249,130 $2,643, % Other comprehensive income $107,639 $0 $107,639 N/A Retained earnings 324, ,894 64, % TOTAL EQUITY $11,324,719 $8,509,024 $2,815, % TOTAL LIABILITIES AND EQUITY $22,719,174 $11,256,743 $11,462, % 33

34 Financial Statements P&L Income Statement (figures in 000s of MXN pesos, except Net Income per CBFI) Quarter to Quarter Year to date 1Q17 1Q16 Variation % Var 1Q17 1Q16 REVENUES Interests on mortgage loans $556,979 $299,345 $257, % $556,979 $299,345 Investment income 13,939 2,498 11, % 13,939 2,498 Total net interest income 570, , , % 570, ,843 Financing interest expenses (206,572) (33,477) (173,095) 517.1% (206,572) (33,477) Financial margin 364, ,366 95, % 364, ,366 (-) Allowance for loan losses (46,691) (1,862) (44,829) 2,407.6% (46,691) (1,862) Financial margin adjusted for credit risks 317, ,504 51, % 317, ,504 Valuation of receivable benefits in securitization transactions 32,224 31, % 32,224 31,274 TOTAL REVENUES, NET $349,879 $297,778 $52, % $349,879 $297,778 EXPENSES Management and collection fees (87,212) (59,577) (27,635) 46.4% (87,212) (59,577) Other administrative expenses (19,212) (10,587) (8,625) 81.5% (19,212) (10,587) TOTAL EXPENSES (106,424) (70,164) (36,260) 51.7% (106,424) (70,164) NET INCOME $243,455 $227,614 $15, % $243,455 $227,614 NET INCOME PER CBFI $0.536 $0.660 ($0.123) (18.7%) $0.536 $0.660 COMPREHENSIVE INCOME Net income $243,455 $227,614 $15, % $243,455 $227,614 Other comprehensive income (23,015) 0 (23,015) N/A (23,015) 0 TOTAL COMPREHENSIVE INCOME $220,440 $227,614 ($7,174) (3.2%) $220,440 $227,614 34

35 Disclaimer This document was produced for information purposes only, for the exclusive use of the recipient. It should be understand as informative and should not be considered as a basis for any investment or financial transaction, therefore FIDEICOMISO HIPOTECARIO F/2061 ( FHipo, the Company or the Issuer ) its stockholders, members or employees does not assume any direct or indirect responsibility whatsoever of any financial transaction and/or any legal action that any person that consult it might eventually implement on the basis of such information. The information contained herein is indicative and subject to change at any time. Client should be aware that prices may fall as well as rise. For this reason, positive performance in the past can be no guarantee of positive performance in the future. All information in this document is subject to verification, correction, completion and change without notice. No representation or warranty, express or implied, is given or will be given as to the accuracy, completeness or fairness of the information or opinions contained in this document and any reliance you place on them will be at your sole risk. It may not be reproduced to any other person, and it may not be published, in whole or in part, for any purpose. This document does not constitute an offer, a recommendation, or an invitation to purchase or sell investment instruments, perform financial services or to execute transactions of any kind. In addition, no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by the Company. It is not intended to be relied upon as advice to potential investors and does not form the basis for an informed investment decision. If the Company should, at any time in the future, commence a new offering of securities, any decision to invest in such offer to subscribe for or acquire securities of the Company must be based wholly on the information contained in the offering circular to be issued by the Company in connection with any such offer and not on the contents hereof. 35