Mexico: Rising Opportunity. CEO María Ariza

Transcription

1 Mexico: Rising Opportunity CEO María Ariza May, 2017

2 Economic Stability and Positive Growth Rates $1,400 $1,200 $1,000 $800 Historic Mexican GDP (USD Billion) $1.144 USD Trillion $600 $400 $200 $ Source: inegi, % 4% Mexican Economic Growth % 0% -2% Average 2.5% growth in the last 10 years -4% -6% Source: Bancomext, INEGI,

3 Economic Stability and Positive Growth Rates Economic Growth Comparative (2016) Source: Bancomext, IMF, World Economic Perspective Data Base,

4 Population 135,000, ,000, ,000, ,000,000 95,000,000 85,000,000 75,000,000 65,000,000 55,000,000 45,000,000 35,000,000 Historic National Population (Million People) million Men Women Source: Bancomext, INEGI,

5 Mexican Favorable Location United States of America Atlantic Ocean Golf of Mexico Caribbean Sea Pacific Ocean 1 Canada 9.98 million km2 2 USA 9.63 million Km2 3 Brazil 8.51 million km2 4 Argentina 2.77 million km2 5 Mexico 1.97 million km2 Source: Bancomext,

6 Mexican Infrastructure and Energy Overview World Ranking Infrastructure development Roads 54 Electricity 73 PAR 40 TT 51 MX 59 Seaports Airports HK 1 CHI 45 URU 52 Energy Infrastructure 49 Source: Ainda PE Fund, % 5.5% Government Investment in Infrastructure GDP % ( ) 5.0% 4.5% 4.0% 4.5% of GDP 3.5% 3.0% 2.5% 2.0% Source: Bancomext,

7 Investment on Infrastructure and Energy USD$ 3.6 billion invested to construct 59.8 km of railroad USD$ million invested to modernize electric centrals USD$ 15.9 billion invested on national roads USD$ 1.5 billion invested in energy centrals USD$ million invested in airport services highways with 1500 kilometers were finished

8 Private Equity Industry Historic Committed Capital to Mexico (USD millions) $45,000 $41,918 $42,571 $40,000 $35,000 $33,469 $30,000 $25,000 $20,889 $25,361 $27,422 $20,000 $18,102 $15,000 $12,693 $14,372 $10,848 $10,000 $9,140 $9,140 $6,725 $7,489 $4,439 $5,000 $3,868 $3,868 $- $1,222 $2,149 $2, Jul-16 Venture Capital $250 $270 $270 $372 $500 $515 $735 $787 $1,018 $1,387 $1,611 $1,781 Real Estate $1,608 $3,335 $5,562 $6,817 $7,166 $8,631 $9,531 $11,120 $11,799 $11,918 $12,346 $12,346 Private Equity $2,456 $2,793 $4,601 $4,846 $5,108 $5,960 $7,195 $7,830 $8,830 $10,289 $15,525 $15,675 Infrastructure and Energy $125 $135 $155 $287 $1,222 $2,149 $2,529 $3,868 $3,868 $7,489 $9,140 $9,140 Fund of Funds $- $192 $192 $192 $192 $338 $390 $827 $827 $964 $1,457 $1,457 Debt $- $- $68 $178 $183 $509 $509 $929 $1,080 $1,422 $1,838 $1,872 Totals $4,439 $6,725 $10,848 $12,693 $14,372 $18,102 $20,889 $25,361 $27,422 $33,469 $41,918 $42,571 Source: AMEXCAP,

9 Private Equity Industry Active Fund Managers (Number of GPs) Jul-16 Venture Capital Real Estate Private Equity Infrastructure & Energy Fund of Funds Debt Totals

10 Universe of GPs Operating in Mexico by Size and Strategy Source: AMEXCAP,

11 Universe of GPs Operating in Mexico by Strategy Source: AMEXCAP,

12 Australian Funds Operating in Mexico Macquarie is the only Australian Fund operating in Mexico Macquarie Group launched Macquarie Mexican Infrastructure Fund in 2010, with approximately USD$408 million in initial commitments from Mexican pension funds, FONADIN and Macquarie. MMIF is Macquarie's first managed fund in Latin America, and is the first peso-denominated fund solely focused on investment opportunities in Mexican infrastructure projects. The Fund will target investments across infrastructure asset classes that include: roads and rail, airports and ports, water and wastewater, energy and utilities as well as social and communications infrastructure

13 Historic Transactions on Infrastructure and Energy Sector $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- $487 8 Infrastructure and Energy Transactions by Number and Size (Number, USD Millions) 3 $- $ $270 $ $1,856 $2, $ Valor de inversiones (USD millones) Número de inversiones Telecomunicaciones Infrastructure and energy (Transactions from ) 2% Recent Investments: Los Ramones Renewable Projects: Ventikas Materias básicas 2% Tres Mesas La Bufa Servicios financieros 2% Sierra Oil and Gas Tres Mesas Bienes de consumo Cuidado de la salud Servicios Públicos 5% 6% 36% Fermaca Citla Energy Adquisition of PEMEX s assets Chabacal I and II Solar Park Coahuila Bright Petróleo y gas 48% Source: AMEXCAP, % 10% 20% 30% 40% 50% 60%

14 CKDs CKD 60 CKDs $ 8.3 billion 15 CKD Infraestructure - $ 5.4 billion Total: USD $24.89 (billion) Available: USD $16.58 (billion) Taken: USD $8.3 (billion) New Vehicles CERPI FIBRA E CEL Maximum Capital USD$ 210 million & & Maximum Capital USD$ million & & Designed to boost the generation of renewable energy in Mexico

15 Inscreasing Deal Flow and Private Equity Funds as Expert Allies

16 Opportunity Area: Upstream, Midstream and Downstream Round Cero Estimation to drill around 3,000 oil wells in 5 years (USD$ 10,000 billion). Round one: Estimation to drill 2,300 oil wells un 5 years (USD$ 19,000 billion). Contracts migration Estimation (USD$ 3,930 billion). Farmouts Projects in mature sectors, heavy oil and deep water (USD$ 32,000 billion)

17 Opportunity Area: Gas Pipelines and Generation of Ethanol Oil and gas average anual Price (USD$ Bbtu) Japan USD$ 10.3 Germany USD$ 6.6 United Kingdom USD$ 6.6 USA USD$ 2.6 Canada USD$

18 Opportunity Area: Power Transmission lines

19 Opportunity Area: Energy Production, Renewable and Clean Energy Production

20 Opportunity Area: Hidraulic Sector Water availability, has experienced contraction in our country. Mexico went form 18,000 m3 per capita in 1950 to less than 4,000 m3 in Additionally, aquifers are being overexploited. Out of 653 of Mexican aquifers, 106 (16%) have higher extraction levels than their annual recharge capability

21 Opportunity Area: Project Relocating Costs

22 Conclusions Mexico is going through a rising phase regarding its infrastructure and energy sector: 1. Wide deal flow of all sorts of projects 2. Structural reforms 3. New vehicles incentivizing investment 4. Competitive and sophisticated private equity industry

23 Thank You CEO María Ariza May, 2017