4 th Quarter 2016 Results

Transcription

1 Investment that Transforms 4 th Quarter 2016 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 - 4Q16 Performance of our CBFIs - 4Q16 Leverage strategy Financial results & key metrics Risk assessment Our outlook Financial statements - 4Q16 2

3 1. Performance and achievements during the quarter

4 Performance and Achievements during the 4Q16 These were FHipo s achievements during the 4 th quarter of 2016 Significant growth of our Earnings Per Share (EPS) Evolution of our Leverage Strategy (figures in pesos, growth quarter to quarter) EPS $0.500 $0.523 (figures in millions of pesos) 2,850 11, 629 2, , 689 4Q16 3Q16 4Q16 4.6% Quarter-over-Quarter EPS Growth 3,000 1st LT Bond 2,205 2, ,624 2,000 RMBS Banorte F. Banorte F. Santander (CDVITOT) No.1 No.2 Faciity Amount Available st ST Bond Amount Issued / Withdrawn 2nd ST Bond 9, x D/E (1) 11, 689 Debt Equity Off-Balance On-Balance Development of our ROE (1) since our IPO (November 2014) 4.8% 8.6% 9.0% 8.3% Follow-on Equity Offering 11.3% 11.2% 10.1% 8.3% 8.7% 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Transitional Quarter's Covered Bond Issuance Notable mortgage diversification and origination (figures in billions of pesos, by origination program) $2.0 Total Portfolio Balance (on and off balance) $6.7 $7.4 $8.0 $12.1 $12.7 $18.0 $19.6 $21.9 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Fovissste Infonavit Más Crédito Infonavit Total Source: FHipo s quarterly reports. (1) Considering on and off balance leverage. (2) Annualized considering the average assets and/or equity during the year. 4

5 2. Mexican mortgage market

6 Deindexation of Minimum Wage Reform As a result of the approval of the constitutional reform to deindex the minimum wage, the National Institute of Statistics and Geography (INEGI) informed that starting January 2016, it would start to determine the value of the Unit of Measure and Update (UMA), unit, which will be replacing the minimum wage, for mortgage loans, if its annual growth were to be superior to that of inflation. In this sense, INEGI released the initial value of the UMA, which was equivalent to the country's minimum wage of 2016 (Ps. $73.04). How does this change affect mortgages denominated in times minimum wage (VSM)? The approved reform determines that the mortgages granted in VSM will be updated in accordance to the adjustments of such, as long as the growth does not exceed the corresponding increase of the UMA. Therefore, it could de assumed that mortgage loans denominated in VSM will be adjusted in accordance with the UMA, which is indexed to inflation. Unlike the Unit of Investment (UDI) which is adjusted daily, the UMA will be adjusted annually. What is the UMA? The UMA is an economic reference in pesos used to determine the amount/payment of certain obligations foreseen under federal law. The daily value is determined by multiplying the daily value of the UMA (immediately preceding year) by the result of the addition of one plus the annual variation of the National Consumer Price Index for immediate preceding year. The monthly value of the UMA is calculated by multiplying its daily value by 30.4, and its annual value is calculated by multiplying its monthly value by 12. The initial value of the UMA was equivalent to the minimum wage during The INEGI will publish annually the value of the UMA within the first 10 days of January every year. Year Daily Monthly Annually 2016 Ps. $ Ps. $ 2, Ps. $ 26, Ps. $ Ps. $ 2, Ps. $ 27, As of the end of % of our consolidated portfolio is denominated in VSM, which increased 3.4% (1) in 2016 according to the adjustment in the UMA (inflation), such increase was slightly below the increase of the minimum wage registered during 2015 of 4.2%. Assessing the expected upward trend for the 2017 estimated inflation, our asset yield should be benefited. (1) Such increase will be registered in our mortgage portfolio on January

7 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 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-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) 14.50% 13.50% 12.50% 11.50% 10.50% 9.50% 8.50% On average Commercial Banks originate mortgage loans with Total Annual Cost (TAC) above 12.5% nominal (fixed rate). Interest Rate charged by Infonavit and Fovissste (Interest rate charged depending on borrower s income level) 14.00% 13.00% 12.00% 11.00% 10.00% 9.00% 8.00% 7.00% 6.00% 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). 7

8 Infonavit s Mortgage Loan Origination Infonavit expects to originate ~376 thousand loans a year for the next five years (2017 to 2021), which translates in a CAGR ( 16 21) of 7.0% 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 3,000 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 ) Qualified beneficiaries who request a loan 25.00% 20.00% 15.00% 10.00% 5.00% 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 ) Source: Infonavit (Financial Plan ) Infonavit's total mortgage loan portfolio 8

9 Fovissste s Mortgage Loan Origination Fovissste expects to originate ~40 billion pesos worth of mortgages annually Distribution of Fovissste s originated portfolio (2015) (amounts in billions of pesos) 37 Fovissste Loans: Projected Total Origination % 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) 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: FOVISSSTE (Annual Activity Report 2015) Source: FOVISSSTE (Annual Activity Report 2015) FOVISSSTE aims to continue granting loans and satisfying the demand for credit to more than 100,000 (1) workers at the service of the State (ISSSTE) (1) Source: ISSSTE Statistical Yearbook

10 3. Mortgage origination programs

11 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 $80,934 (1) 156 VSM s ~ USD $17,319 (1) 745 VSM s ~ USD $ 82,710 (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 (2016 Ps. $73.04) by the average number of days in a month, each year (30.4 days). (1) Assumes a FX MXN $20.0 per USD$. (2) 30%/28% if house does not have eco-technology, and 32%/30% for houses with eco-technology. 11

12 4. Portfolio composition - 4Q16 As of December 31 st, 2016

13 Consolidated Portfolio Composition as of 4Q16 Summary of FHipo s consolidated portfolio characteristics (Infonavit and Fovissste (1) ) (loan balance as of December 31 st, 2016) FHipo - Consolidated Portafolio (Infonavit and Fovissste (1) ) Total Balance (FHipo's Participation) Ps. $21,938 million (2) Total Number of Loans: Infonavit and Fovissste (1) 75,209 Average Co-participated Loan Balance by Mortgage Loan Ps. $291,700 (2) Loan-to-Value at Origination (LTV) (3) 76.19% Payment-to-Income (PTI) (3) 24.99% Current Portfolio 99.45% (412 non-performing loans) By Mortgage Origination Program Infonavit Total Portfolio Balance (VSM (4) and Pesos) Number of Loans (VSM (4) and Pesos) 55,114 Portfolio Balance denominated in VSM (4) Number of Loans denominated in VSM (4) 23,677 (3) (4) Average Interest Rate of loans denominated in VSM 9.57% Portfolio Balance denominated in Pesos Ps. $12,858 million Ps. $5,637 million in VSM Number of Loans denominated in Pesos 31,437 Average Interest Rate of Loans denominated in Pesos Infonavit Más Crédito Portfolio Balance Number of Loans 12,707 Average Loan Interest Rate Ps. $7,221 million 12.00% (Nominal) Ps. $6,204 million 10.80% (Nominal) Fovissste (1) Portfolio Balance denominated in VSM (4) Number of Loans 7,388 (3) (4) Average Interest Rate of loans denominated in VSM 5.39% Ps. $2,876 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 December 31 st 2016, FHipo co-participates 69.6% (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. 13

14 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) < % 26.3% 23.1% 46.3% 28.5% % > % 5.0% 5.4% 6.3% 19.3% 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) 0.6% (as % of total loans within Fovissste s VSM portfolio) 54.5% < % 17.1% 28.4% > % 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. 14

15 State of Mexico Nuevo León Jalisco Veracruz Guanajuato Coahuila Querétaro Baja California Chihuahua 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 37.1% 26.1% 20.7% 16.1% 65 % % % 85-95% 30.3% 4.0% 4.7% 5.1% 6.1% 30.0% 19.8% < > % 25.7% 28.3% 13.1% Infonavit Total VSM Infonavit Total Pesos Infonavit Más Crédito Fovissste (2) Geographic distribution of the portfolio Distribution by loan balance (1) on and off balance Distribution by Interest Rate (Real vs. Nominal) 21.9% 12.6% 11.1% 6.7% 6.1% 4.9% 4.7% 4.5% 4.0% 4.0% 3.6% 3.6% 3.3% 3.1% 3.0% 2.9% Total Loan Balance Ps. $21,938 million 11.5% 88.5% 61.2% 38.8% 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. 15

16 5. Performance of our CBFIs - 4Q16

17 Performance of FHipo s CBFIs during the 4Q16 and Analysts Coverage FHipo s Certificados Bursátiles Fiduciarios Inmobiliarios (CBFIs) performance during the 4Q16 # of CBFIs 8,000,000 6,000,000 4,000,000 Average Price $ Average Volume 1,126,925 FHipo announces the prepayment of the first credit facility signed with Banorte for Ps. ~$3.0 bn FHipo announces an additional withdrawal to the second credit facility signed with Banorte for Ps. $724 million FHipo announces an additional withdrawal to the second credit facility signed with Banorte for Ps. $950 million FHipo informs that on November 24 th 2016, the distribution corresponding to the third quarter of 2016 will take place for Ps. $0.48 FHipo announces an additional withdrawal to the second credit facility signed with Banorte for Ps. $500 million FHipo announces an additional withdrawal to the second credit facility signed with Banorte for Ps. $700 million MXN $ ,000, sep.-16 oct.-16 nov.-16 dic.-16 Source: Bloomberg. Volume CBFIs Price 20 Equity Research Analysts Coverage 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. $28.00 per CBFI Nau-Securities Iñigo Vega Buy Ps. $32.40 per CBFI Santander Cecilia Jimenez Buy Ps. $30.00 por CBFI (1) Target Price, 12 months forward-looking from recommendation date. 17

18 6. Leverage strategy

19 Diversified Sources of Funding FHipo has achieved finance 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% LT Bond Long-Term Funding 6.27% 2.91% 3.36% CDVITOT 15U/15-2U 7.61% 7.46% 2.05% 1.90% 0.79% 0.70% 5.21% 5.21% 5.21% 5.21% Banorte C.Facilities Santander C.Facility Short-Term Funding 6.00% 5.91% 1st ST Bond 2nd ST Bond Fixed Rate SWAP (1) Spread/Margin UDI Average TIIE 4Q16 Vencimiento Debt maturity de schedule la Deudas al of 2T16 4Q16 Maturity Date (amortization) Short-Term Bond (FHipo 00216) Bullet 2017 Short-Term Bond (FHipo 00116) Bullet 2017 Long-Term Bond (FHIPO 16) Bullet 2021 / Amortization according to portfolio collection Santander Credit Facility Legal term: 2046 Banorte Credit Facilities CDVITOT 15U and 15-2U Legal term: 2025, 2026 (revolving) 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 (figures in billions of pesos) Securitizations (RMBS) Long-Term Bonds Credit Facilities Short-Term Bonds Debt to Equity Ratio (On Balance) $4.4 $5.3 $8.2 $9.9 $11.6 $2.6 = 0.0x 0.21x 0.31x 0.48x 0.63x 0.81x (2) 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Source: FHipo, Bloomberg and Bank of Mexico. (1) SWAP: Notional principal of Ps. $3,000 mm (as of 4Q16 FHipo has withdrawn Ps. $3,624 mm through such warehousing facilities). (2) 1.0x (Debt/Equity) considering off balance leverage. 19

20 Funding Structure as of 4Q16 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 - $1,980 (1) Financial Duration: 2019 CDVITOT 15-2U Securitization UDIBONO 2020 (2.22%) +190 bps - $225 (1) Financial Duration: 2020 Credit Facility Banorte No. 1 Warehousing Line TIIE bps (2) $5,000 $2,150 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 = 7.0% - - $3, / Legal Term: 2051 Market Risk 100% of our long-term debt is structured to match the duration of our mortgage loans. i. Our securitization is comprised of times minimum wage (VSM) denominated mortgage loans, which are indexed to inflation (unit of measure and update, UMA). The coupon rate, of both the senior and subordinate tranche, are indexed to investment units (UDI). Therefore, both the asset and borrowing rates are indexed to inflation (matching currency), securing a financial margin during the term of the structure. 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. 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. 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 4Q x (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 1.0x (Debt/Equity). 20

21 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 4Q 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 4Q 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 4Q16. 21

22 Exceptional Asset Quality and Key Financial Indicators 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. Additionally we detail our year-over-year portfolio and net income growth. Stable levels of Non-Performing Loan (NPLs) with conservative allowance for loan losses 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 1.07% 0.99% 1.01% 0.93% 0.91% 0.75% 0.52% 0.45% 0.68% 0.60% 0.49% 0.09% 0.36% 0.00% 0.04% (1) 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Loss Given Default of 51.4% (2) Expected Loss (EL): ~31 bps 1.01% (0.60% * 51.4%) Coverage 3.3x Non-Performing Loans: 60 bps 1.01% 0.60% Coverage 1.7x Allowance for Loan Losses / Portfolio NPL's / Portfolio Consolidated Mortgage Portfolio (figures in millions of pesos) CAGR 14 16: 233.0% Growth: 81.9% Net Result (figures in millions of pesos) CAGR 14 16: 318.5% Growth: 28.30% $21,938 $21,938 $973 $973 $758 $758 $12,062 $12,062 $1,979 $ Q15' YTD 4Q16' YTD Fovissste's Portfolio Infonavit's Portfolio Source: FHipo s Quarterly Financial Reports Q15' YTD 4Q16' YTD (1) FHipo did not generate allowance for loan losses in 4Q14, FHipo started creating allowance for loan losses in accordance with IFRS in (2) For additional information refer to page no. 29 (Credit Risk). 22

23 Attractive risk-return profile in a complicated macroeconomic environment FHipo s Estimated Financial Margin (Asset Yield vs. Debt Cost) as of the 4Q16 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 4Q16: 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% 12.86% 3.36% 9.50% 8.76% 3.36% 7.00% 6.27% 7.61% 7.46% 6.20% 6.11% 5.40% 7.00% 3.36% 5.41% 5.41% 5.41% 5.41% Infonavit Más Crédito (Pesos) VSM increase (1) Infonavit Total (Pesos) Infonavit Total (VSM) Interest Rate of the Asset Fovissste (VSM) LT Bond RMBS (CDVITOT) Banorte C.Facilities Santander C.Facility 1st ST Bond 2nd ST Bond Fixed Rate SWAP (1) Spread/Margin UDI (2) Average TIIE 4Q 11.46% Fovissste 1.2% Inf MC 3.1% Financial Margin 4.4% 7.02% Attractive Asset Yield Inf Total 7.3% RMBS 1.2% ST Bonds 0.4% LT Bonds 1.8% Competitive Debt Cost C. Facilities 3.7% 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 (Inflation 2016 of 3.36%, reported by Banxico). 23

24 7. Financial results & key metrics

25 Solid financial results in 4Q16 P&L Summary at 4Q16 P&L figures in Ps. 000s, except the Net Income per CBFI 4Q16 4Q15 (+) Interests on mortgage loans $494,324 $300,006 (+) Investment income 8,820 5,417 (-) Financing interest expenses (163,884) (11,987) (-) Allowance for loan losses (22,698) (52,352) (+) Valuation of receivable benefits in securitization transactions 33,782 58,313 (-) Operating expenses (104,757) (67,591) Net Income $245,587 $231,806 Net Income per CBFI $0.523 $0.672 Income from assets on balance which include the collection rights on Fovissste s portfolio, reached Ps. $494.3 million, an increase of 64.8% in comparison with the same period of the previous year. We achieved a Net Income in the 4Q16 of Ps. $245.6 million, according to our distribution policy (95% of Results), the Net Income to be distributed of Ps. $233.3 million....with a Net Income per CBFI (EPS) in the 4Q16 of Ps. $0.523 (3) and an expected distribution per CBFI of Ps. $0.497 in accordance with our distribution policy. Balance Sheet Summary Balance Sheet figures in Ps. 000s 4Q16 Cash and investments in securities $798,931 Mortgage loans, net (4) 16,798,984 Collection rights, net 3,002,602 Receivable benefits in securitization transactions 504,020 Derivative financial instruments 130,654 Accounts receivables and other assets 99,400 Total Assets $21,334,591 Accounts payables and accrued expenses 268,384 Notes Payable 3,621,741 Financing 5,755,899 Total Liabilities $9,646,024 Total Equity $11,688,567 Total Liabilities + Equity $21,334,591 ROA (1) : 5.0% ROE (2) : 8.7% EPS in Ps. of $0.52 (3) (1) (Net Income / Total Assets average of the period), annualized considering 92 effective days of operation in the 4Q16. (2) (Net Income / Total Equity average of the period), annualized considering 92 effective days of operation in the 4Q16. (3) Considering the outstanding CBFIs at the end of 4Q16 (469,515,000). (4) Includes principal, accrued interests, indexation on loans in VSM, and allowance for loan losses. 25

26 Yield of our CBFIs and Invested Capital The following charts illustrate the yield per CBFI for the 4Q16 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 4Q16 4Q16 EPS (Ps./CBFI) (1) $0.52 Issuance Price - IPO (Ps.) $25.00 Number of Outstanding CBFIs as of 4Q16 469,515,000 Return on Invested Capital (calculation of accumulated yield since November 2016) Accumulated Distributions (4) Effective Days Invested Capital as of 4Q16 (5) Ps. $233.3 million 92 days Ps. $11,948.3 million Period: 4Q16 Annualized distribution on Equity as of 4Q16 (%): 7.7% (6) 95%, Estimated Distribution Ps. $233.3 million (2) Yield on price of CBFI (IPO) at 4Q % (3) (1) Net Income / # CBFIs (outstanding at the end of 4Q16). (2) Should be divided by the outstanding CBFIs at ex-dividend date. (3) Annualized (compounded) considering 92 effective days in operation in the 4Q16 and outstanding CBFIs at the end of 4Q16 (469,515,000). (4) Accumulated distributions since 4Q15. (5) Invested capital results from deducting the expected distribution of the 4Q16 results and adding the IPO expenses from FHipo s total equity at the end of the 4Q16. (6) Annualized considering 92 effective days since the 4Q15 and calculated in accordance with the administration s trust agreement. 26

27 Our Key Metrics and Relevant Financial Information in 4Q16 Main Financial Metrics Quarter to Quarter Year to date Figures are presented according to each metric (%, $) 4Q16 4Q15 4Q16 4Q15 Financial Margin and Interest Revenues Financial Margin - "interest revenue - interest expense / total interest revenue" 67.4% 96.1% 78.5% 98.7% Net Interest Margin (NIM) (1) - "total revenues, net / average net mortgage loans" 7.2% 12.1% 8.8% 9.3% Efficiency Metrics Efficiency Ratio - "total expenses / total revenue" 29.9% 22.6% 26.8% 25.1% Total Expenses / Gross Income 19.5% 18.6% 19.9% 20.2% Allowance for loan Losses / Total Mortgage Loans (2) 1.01% 0.93% 1.01% 0.93% Returns and Profits Earnings per CBFI (EPS) (3) - "net income / number of CBFIs" $0.523 $0.672 $2.072 $2.197 Return on Assets (ROA) (1)(4) - "net income / total assets" 5.0% 9.1% 6.4% 7.2% Return on Equity (ROE) (1)(5) - "net income / total equity" 8.7% 11.3% 9.1% 8.9% Other Metrics Non-performing Loans / Net Portfolio 0.60% 0.09% 0.60% 0.09% 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 4Q16 with an accumulated Financial Margin of 78.5%...a Net Interest Margin (NIM, year to date) as of 4Q16 of 8.0%......with an accumulated Efficiency Ratio as of 4Q16 of 26.8%... a ROE (year to date) as of 4Q16 of 9.1% and with a Non-Current Portfolio (on-balance) of 0.60%. 27

28 8. Risk assessment

29 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 at analysis date) the expected loss was calculated 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 (51.4%, weighted average) EXP i : Loan i Exposure (Outstanding balance on date of analysis) EL Total = Ps. $182.3 million It is worth mentioning that for loans in extension, an additional Probability of Default is applied depending on the number of periods each of these loans have been in such regime. As of 4Q16 (December 31 st, 2016), the 12 month forward-looking expected loss for FHipo s portfolio was Ps. $182.3 million for FHipo s onbalance portfolio. (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. 29

30 Risk Assessment (Cont.) 2. Market Risk As of December 31 st, 2016, 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 4Q16 we had repurchase agreements, with maximum maturity of less than a year which amounted in Ps. $798.9 mm, additionally we have Ps. $3,226.0 mm available though the Warehousing Lines, so we do not have any liquidity risk in the short term. By the end of 4Q16, FHipo had liabilities which amounted in Ps. $9,424.0 mm, however, this amount only represents 44.2% of the assets on FHipo s Balance, and 93.1% 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 30

31 9. Our outlook

32 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 and plans 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

33 10. Financial Statements - 4Q16

34 Financial Statements Balance Sheet Balance Sheet 4Q16 (figures in 000s of MXN pesos) 4Q16 4Q15 Variation % Var ASSETS Cash and cash equivalents $798,931 $497,832 $301, % Debt securities N/A Current mortgage loans 16,440,309 9,335,674 7,104, % Past due mortgage loans 97,728 8,189 89,539 1,093.4% Accrued interest 327, , , % Indexation on mortgage loans 104, ,494 (30,079) (22.4%) Allowance for loan losses (170,831) (89,389) (81,442) 91.1% Mortgage loans, net 16,798,984 9,566,834 7,232, % Collection rights, net 3,002, ,002,602 N/A Receivable benefits in securitization transactions 504, , , % Derivative financial instruments 130, ,654 N/A Accounts receivables and other assets 99,400 36,947 62, % TOTAL ASSETS $21,334,591 $10,471,524 $10,863, % LIABILITIES Accounts payables and accrued expenses $268,384 $242,683 $25, % Notes/securities payable 3,621, ,621,741 N/A Borrowings 5,755,899 1,727,215 4,028, % TOTAL LIABILITIES $9,646,024 $1,969,898 $7,676, % EQUITY Common stock, net $11,243,692 $8,249,130 $2,994, % Other items of comprehensive income $130,654 $0 $130,654 N/A Retained earnings 314, ,496 61, % TOTAL EQUITY $11,688,567 $8,501,626 $3,186, % TOTAL LIABILITIES AND EQUITY $21,334,591 $10,471,524 $10,863, % 34

35 Financial Statements P&L Income Statement (figures in 000s of MXN pesos, except Net Income per CBFI) Quarter to Quarter Year to date 4Q16 4Q15 Variation % Var 4Q16 4Q15 REVENUES Interests on mortgage loans $494,324 $300,006 $194, % $1,628,500 $901,654 Investment income 8,820 5,417 3, % 23,619 51,304 Total net interest income 503, , , % 1,652, ,958 Financing interest expenses (163,884) (11,987) (151,897) 1,267.2% (354,719) (11,987) Financial margin 339, ,436 45, % 1,297, ,971 (-) Allowance for loan losses (22,698) (52,352) 29,654 (56.6%) (103,673) (83,150) Financial margin adjusted for credit risks 316, ,084 75, % 1,193, ,821 Valuation of receivable benefits in securitization transactions 33,782 58,313 (24,531) (42.1%) 134, ,704 TOTAL REVENUES, NET $350,344 $299,397 $50, % $1,327,832 $973,525 EXPENSES Management and collection fees (85,330) (55,739) (29,591) 53.1% (300,218) (186,499) Other administrative expenses (19,427) (11,852) (7,575) 63.9% (54,989) (28,913) TOTAL EXPENSES (104,757) (67,591) (37,166) 55.0% (355,207) (215,412) NET INCOME $245,587 $231,806 $13, % $972,625 $758,113 NET INCOME PER CBFI $0.523 $0.672 ($0.149) (22.2%) $2.072 $2.197 COMPREHENSIVE INCOME Net income $245,587 $231,806 $13, % $972,625 $758,113 Other comprehensive income 108, ,285 15,947.7% 130,654 0 TOTAL COMPREHENSIVE INCOME $354,551 $232,485 $122, % $1,103,279 $758,113 35

36 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. 36