The 9th Cumbre Financiera Mexicana Finance and Investment in Mexico’s Debt Capital Markets March 6th 2014 | Mexico City, Mexico | The Four Seasons Hotel Simultaneous English - Spanish translation available For nine years running, the Cumbre Financiera Mexicana is where prominent corporate issuers, growth companies, sub-national borrowers, local and international investors, regulators and bankers come together for a comprehensive day of technical corporate finance workshops and private 1-1 meetings. This invitation only summit, where over 60% of the participants are issuers and investors, will examine the practical use of existing and emerging financial structures and products that enable efficient access to funding in the local and international markets. The 9th Cumbre Financiera Mexicana March 6th, 2014 08:00-09:00 Conference Registration 09:00 Opening Remarks: Michael Brosgart, Executive Director, LatinFinance 09:00-09:30 Keynote Address: Luis Videgaray, Secretary of Finance & Public Credit, Mexico 09:30-09:50 Emilio Lozoya Austin, CEO, Pemex in Live Interview with Taimur Ahmad, Editor-in-Chief, LatinFinance 09:50-10:40 Opening Plenary Session: Mexican Capital Markets – Innovations, Opportunities & Challenges Compared to other emerging economies, Mexico looks increasingly appealing to a diverse and growing investor base as the government continues with structural reforms across its most important sectors. This combined with Mexico’s sustained growth prospects are attracting investment banks and investors hunting for ways to gain exposure. Additionally, restored confidence has led to increased activity in across various asset classes including: DCM, M&A, equity and FDI. This opening panel, comprised of leading investors, corporates, economists and advisers will discuss the relationship between expectations and reality, the new government and Mexico’s capital markets, as well the ongoing development of the Mexican economy and financial innovation there within.  What are the most salient risks to Mexico’s growth and to the performance of its leading sectors?  How are Mexican companies adjusting funding sources and capital structure given ongoing global market volatilities?  How do the pension funds continue to redefine Mexican capital markets?  How does Mexico’s stock market compare to Brazil - its main rival in Latin America?  Since the banks are strongly capitalized and have complied with the Basel III, how has it impacted market for credit? Moderated by: Taimur Ahmad, Editor-in-Chief, LatinFinance Panelists include: Ana María Aguilar Argaez, Director of Economic Studies, Banco de México Juan Garrido Otaola, Deputy Director General of Global Banking & Markets, Santander Mexico Rogelio Ramirez de la O, Economist & Director - Ecanal S.A. Gerardo Salazar, CEO, Banco Interacciones Alejandro Cardenas Bortoni, MD Global Client Coverage, BBVA Bancomer 10:40-11:30 The Resurgence of Equity Financing in Mexico Hosted by BBVA Bancomer Mexican companies have raised a record amount of capital through the equity market this year. This is even more impressive when you take into account the global economic slowdown and concerns over U.S. monetary policy which has led to recent routs in emerging market stocks. Mexican FIBRAs, and companies including the airline Volaris and gas company IEnova, have raised almost $10 billion through 15 IPOs and FOs this year, an all-time high for Latin America's second-biggest economy. A panel of experts will examine the opportunities for capital raising through the equity markets, execution strategies and the risks associated.  How has the equity market evolved over the years and how does the outlook look for the next 5 years?  Will Mexico be able to sustain the recent high price-to-earnings ratios and the upsurge recent issuances?  Structuring a growth company to go public – building a clear business model  Consequences of going public – IR, compliance and corporate governance  Awareness of the market – timing, valuations and competitors  How does equity finance compare in terms of time and financial cost, regulatory requirements etc?  How will the new capital gains tax impact the growth of Mexico's equity markets? Moderated by: Ruy Halffter, Executive Director, ECM Investment Banking Mexico, BBVA Bancomer Panelists include: Fernando Suarez Gerard, CFO, Volaris Roberto Palacios, CFO, Hoteles City Jordi Tasias Pitarch, M&A Head, BBVA Bancomer Oscar Calvillo Amaya, CFO, Fibra Inn Luis A. Nicolau, Partner, Ritch Mueller 11:30-11:45 Coffee Break The 9th Cumbre Financiera Mexicana March 6th (contd) 11:45-12:35 Energy Reform: What to Expect & How Will it Affect Project Finance and Investment Strategies? One-to-One Meetings Hosted by Santander Mexico Private 1-on-1 meetings to connect delegates The federal government is currently working in achieving long-standing constitutional energy reforms through Pacto por Mexico. This initiative is expected to include significant changes to Mexico’s current oil regime, partly aimed at attracting increased foreign investment and participation in this sector. A panel of experts will deliberate on how these reforms will affect PPPs and other energy infrastructure projects as well as the financing/investment opportunities and challenges associated.  Update on the reform: Where do we stand today?  If the restriction on foreign companies to invest is lifted, what will the revamped energy sector look like?  How are projects currently being financed? How might this change after reform?  What are the alternatives to traditional project finance for energy developers? Moderated by: Mauricio Alazraki, MD Corporate & Investment Banking Energy Sector, Santander Mexico Panelists include: Mario Beauregard, CFO, Pemex Santiago Sepulveda, Partner, Creel Guillermo Ignacio García, DG of Exploration & Exploitation of Hydrocarbons, Ministry of Energy Francisco Ibáñez Cortina, Partner, PwC 12:35-13:45 Infrastructure Finance for Developers, Operators and Concessionaires Hosted by Banco Interacciones Infrastructure developers, operators and concessionaires are seeking innovative financing solutions, but huge variation in structures, risk hedging strategies, ratings and regulatory environments makes solving these issues complex and financing projects difficult. This panel will explore the issues raised in financing projects at the project level and seek to define common issues and points of risk, solutions and risk mitigation strategies.  What are the international sources of financing? What are the different types of debt available?  What is the government appetite for project financing?  Are project bonds a viable financing solution?  How can equity and/or debt be utilized? What are the more pressing needs in local infrastructure?  Can the capital markets take on the associated construction risk?  How would the new APP law benefit the financing of projects?  How can institutional investors, specifically Afores, be more involved in infrastructure investment? Moderated by: Sergio Chagoya, Partner, Santamarina y Steta Panelists include: José Antonio Estrada Perez, Executive Director - Infrastructure, Banco Interacciones César Serna Escalera, Director General, Red Auto NL Carlos Cesarman, CFO, PINFRA Ignacio Saldaña Paz, Chief Investment Officer, Afore XXI Banorte César Vértiz Pedemonte, Managing Director and Head of Project Finance, Santander Mexico Thomas Yagel, Director - Credit Market Development, S&P Capital IQ Federico Hernández, Partner, KPMG 13:45-15:00 Luncheon One-to-One Meetings Private 1-on-1 meetings to connect delegates The 9th Cumbre Financiera Mexicana March 6th (contd) 15:00-15:50 Cross-Border Funding Strategies for Issuers & Growth Companies After a gap of inactivity, Mexico recently led LatAm back to the international markets with Pemex’s dollar and America Movil‘s Euros and Sterling denominated issuances. With balance sheets in good shape and low levels of leverage, Mexican cross-border borrowers will continue to tap new opportunities in different currencies and markets. This session, from a borrower’s perspective, will examine the best strategies for accessing the international capital markets in the current environment.  Short to medium-term prospects for Latin American credits in the international markets  New trends in debt issuance: sources of capital, structuring, pricing and execution issues  The benefits and risks of issuing in Pesos, Euros, Dollars and other currencies  What is the high-yield market like for Mexican borrowers?  What effect is the end of QE having on Mexican borrowers in the debt markets?  Refinancing & liability management strategies One-to-One Meetings Private 1-on-1 meetings to connect delegates Moderated by: Eduardo Garcia, Senior Reporter, LatinFinance Panelists include: Alejandro Diaz de León, Head of Public Credit, Ministry of Finance, Mexico Francisco Campos Herrera, CFO, Grupo Idesa Martha Rodríguez, CFO, Grupo Cementos Chihuahua Eduardo Uribe-Caraza, Managing Director & Analytical Leader for Latin America, Standard & Poor’s Carlos T. Albarracín, Partner, Milbank 15:50-16:05 Coffee Break 16:05-16:55 Understanding Financing Options Through the Local Debt Capital Markets Despite the broader reassessment of emerging market investment, local market debt issuance in Mexico is sustaining and enhancing its appeal for both borrowers and investors. As the capital needs of Mexican companies increase, the local fixed income markets are growing in step, becoming more sophisticated, with tenors lengthening , interest rates decreasing and the pool of issuers (and potential issuers) growing. This session will explore the local debt capital markets, execution strategies and the current prospects for broader issuance from a wider range of corporate and across a variety of asset classes.  What are the most salient trends in local debt: structuring, pricing and execution?  How is the local credit environment and how is it expected to evolve?  What should local financing strategies be for companies with EBITDA of $25-$150 million USD?  How is demand changing from international investors for peso denominated debt?  What has been done to further develop a liquid Mexican primary/secondary bond market?  What are the preferences and appetites of the Afores and other key investors in the current environment?  Boosting liquidity & secondary trading of debt and derivative securities Moderated by: Victor Piz, Editor-in-Chief, El Financiero Panelists include: Jose Corona, CFO, Minera Frisco Sergio Rodriguez, Senior Director, Fitch Ratings Domingo Valdés, CFO, Vinte Juan Claudio Fullaondo, MD Capital Financing Head for Mexico, HSBC One-to-One Meetings Private 1-on-1 meetings to connect delegates The 9th Cumbre Financiera Mexicana March 6th (contd) 16:55-17:10 A Special Presentation on M&A Deals in Mexico Presented by: One-to-One Meetings Manuel Bentosinos Rico, Regional Director, Merrill DataSite 17:10-18:00 Investors Roundtable With strong growth expectations, anchored inflation projections, a strong regulatory environment and an open economy, it’s no wonder investors are rapidly balancing their portfolios with Mexican equity, debt, loans and structured products. This roundtable will bring together a panel of private equity, hedge fund and real money investors to discuss opportunities and explore how returns can be maximized and risks managed.  Where does Mexico fit in an environment of relative risk reappraisal and global volatility?  How do investors view the reforms and the progress thus far?  What are the most promising sectors? What are the most interested channels/products to access them?  What are the impediments to increased international investment and how can they be overcome?  Does the lack of a liquid secondary market deter investment? Moderated by: Arturo Saval, President, AMEXCAP & Senior Managing Director, Nexxus Capital Panelists include: Gerardo Rodriguez, Managing Director – Emerging Markets Team, Blackrock Alfredo Alfaro, Managing Director, Northgate Capital Mexico Alejandro Rodriguez, Director, Pinebridge Investments Christian Warnholtz, Partner, WAMEX Private Equity Matt Porzio, Vice President of Capital Markets Practice, Intralinks 18:00 Closing Cocktail One-to-One Meetings Private 1-on-1 meetings to connect delegates