Corporate Presentation INVESTOR RELATIONS Ignacio Gutierrez / CFO - - PowerPoint PPT Presentation

INVESTOR RELATIONS

Ignacio Gutierrez / CFO db@fhipo.com Xavier Martínez / IRO xm@fhipo.com inverstorrelations@fhipo.com Ph: +52 (55) 4744-1100 www.fhipo.com

[THE FOLLOWING TRANSLATION IS FOR CONVENIENCE PURPOSES ONLY]

Investment that Transforms

Corporate Presentation

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Attractive risk- reward profile with strong dividend generation High quality portfolios with collection through payroll deduction mechanisms Attractive Mexican mortgage market fundamentals Strong growth potential, coupled with high entry barriers Experienced management team with robust governance standards Strategic alliance with Infonavit Fovissste and the new platform, Smart Lending Solid macroeconomic backdrop

2 3 4 6 7 8

Investment highlights

About FHipo

1 5

• 1. About FHipo

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Source: FTSETM, NAREIT, Bloomberg. (1) As of December 31, 2017. Assumes a FX of MXN $18.05/US$ (2) Assets under management. (2) As of June 30, 2017.

 In 2014, FHipo is created:

− First mover advantage − Mexico’s largest IPO in 2014 (~US. $479m (1))

Market development Opportunity overview

FHipo is the first Mortgage REIT in Latin America…

 In 2016, Follow-on Equity Offering:

− Mexico’s largest Follow-on Offering in 2016 (~US. $173m (2))

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US MREITs

 Market cap: US$67 bn (1)  AuM(2): US$477 bn (3)

Lodging REITs Infrastructure REITs Commercial,

• ffice and

industrial REITs Mortgage REITs

2011 2012 2013 2014 2016 2015 2017 2018  Mexican REIT market is created in

2011

 First lodging REIT in Mexico

is created in 2012

 First infrastructure and

education REITs in Mexico

Ps.$3.9 bn

Long-Term Debt

Aug 2016, Apr 2017

Ps$5.0 bn

Warehousing Facilities

November 2017

Ps$5.0 bn

December 2017

Ps$2.0 bn

February 2018

Warehousing Facility

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Financial innovation that attracts private capital, developing the Mexican mortgage sector

(1) Total amount to originate through the IMC Program equivalent to Ps $6.0 bn in the first auction of 2015, and Ps.$6.0 bn in the second auction of 2017). (2) Expected origination with the strategic alliance between Smart Lending and FHipo. (3) As of June 30th, 2018.

FHipo and its key milestones since its IPO

1st & ONLY MREIT in Mexico

• Ps. $8.6 bnIPO in November 2014 and Ps. $3.1 bn

Follow-On in April 2016 (Sponsor Trust holder of 9.1% (3))

Created to acquire, originate and manage

mortgages in Mexico

Partnership with Infonavit and Fovissste, the largest mortgage lenders with collection through payroll deduction mechanisms in LatAm (residential mortgage origination) Managed by CH, an entity formed and controlled by individuals with experience in the financial and mortgage markets Strategic Alliance with , technological platform through which, FHipo will increase its mortgage origination

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Resources / Funding Mortgage origination

• Ps. $6.0 bn(1)
• Ps. $28.0 bn

Programas de Originación: Objetivo de originación bajo Contrato de Cesión.

• Ps. $4.0 bn
• Ps. $3.0 bn
• Ps. $1.5 bn (2)

Ps$2.0 bn Warehousing

Facilities

June 2016

Ps$7.0 bn

July 2016

Ps$877.0 mm

December 2017

Acquisition Subordinated Equity Residuals

Initial Public Offering

Ps$8.6 bn

November 2014

Follow-On Offering Ps$3.1 bn

April 2016

FHIPOCB 17U Ps$3.4 bn

July 2017

Securitization

Ps$4.2 bn

September 2015

Co-participation

Ps$1.4 bn

June 2017

• Ps. $6.0 bn (1)

2014 2015 2016 2017 2018 Financial Innovation Award by CFI

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.

(Manager)

Reporting and Analytics 90.7%

Sponsor Trust

9.3% (1)

Public Float

Management and Advisory Agreement

CBFIs Issuer Manager & Advisor Systems & Technology Sponsor Trust Loan Originators

• Infonavit, Fovissste, Smart

Lending, Commercial Banks, mortgage originators, among

• thers
• Group of prominent investors

participating in ~9.3% (1) of FHipo’s CBFIs and as CH’s board members

• National leader in mortgage

portfolio servicing

• Professionals with experience

in the financial, real estate and mortgage sectors

• First mortgage REIT in Mexico

Short- to medium-term Medium- to long-term

Organizational Structure

(1) Considering over-allotment options, as of August 15h, 2018.

Holders Assembly TC Appointed by CBFI holders

1

Technical Committee (TC) Audit, Best Practices and Nomination Subcommittees Participation in Mortgage Portfolios

Commercial Banks and other mortgage

• riginators

• 2. Solid macroeconomic backdrop

and favorable country demographics

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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.

(1) Most loans denominated in Pesos have a fixed nominal interest rate of 12.0%

Occupation, Employment and Mortgage Rates in Mexico

Progressive increase in the formal economy and downward unemployment tendency

(Insured workers in 000s and unemployment as % of Economically Active Population) Source: IMSS and INEGI.

Behavior of the Mortgage Interest Rates (Private Sector)

(Average TAC of loans in fixed interest rate of Banks and Sofoles) Source: Bank of Mexico.

Interest Rate charged by Infonavit and Fovissste

(Interest rate charged depending on borrower’s income level)

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1.0% 3.0% 5.0% 7.0% 9.0% Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 15,000 16,500 18,000 19,500 21,000

Insured Workers Unemployment

8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 1-1.5 1.7 1.9 2.1 2.3 2.5 2.7 2.9 3.1 3.3 3.5 3.7 3.9 4.1 4.3 4.5 4.7 4.9 6.1 6.3 6.5-10

Infonavit VSM Infonavit Pesos Fovissste VSM Infonavit Más Crédito

(1) (1)

6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Feb-12 Jul-12 Dec-12 May-13 Oct-13 Mar-14 Aug-14 Jan-15 Jun-15 Nov-15 Apr-16 Sep-16 Feb-17 Jul-17 Dec-17 May-18

Nominal Interest Rate Real Interest Rate

• 3. Attractive Mexican mortgage

market fundamentals

124,630 122,672 121,445 120,231 119,029 117,838 91,730 90,384 83,480 88,585 87,700 86,823 28,171 28,667 28,954 29,243 29,536 29,831 74,416 74,083 75,352 72,646 77,963 79,304 56,823 56,176 56,919 57,672 58,437 59,215 375,770 371,982 366,150 368,377 372,665 373,011 2017 2018 2019 2020 2021 2022 > than 10 VSM 5 - 10 VSM 4 - 5 VSM 2.6 - 4 VSM < than 2.6 VSM $1,172.5 $1,292.4 $1,408.9 $1,518.7 $1,620.5 $1,725.0 $1,831.9 2016 2017 2018E 2019E 2020E 2021E 2022E

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Infonavit’s Mortgage Loan Origination

Infonavit’s mortgage loan origination 2017 - 2022

(number of loans, granted for the acquisition of a new or used home)

FHipo’s target sector Income Range in VSM

Evolution of beneficiaries who qualify for a mortgage loan (2008 - 2017) and % of those who request a loan

4,668 4,442 4,746 4,700 4,440 4,882 5,031 5,242 5,246

5,777 10.6% 10.1% 10.0% 10.7% 13.0% 13.7% 11.0% 12.7% 12.7% 13.3%

5.00% 10.00% 15.00% 20.00% 25.00% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 3,000 3,500 4,000 4,500 5,000 5,500 Beneficiaries who qualify Qualified beneficiaries who request a loan

(in 000s of beneficiaries) Source: Infonavit (Financial Plan 2016-2020 and 2018 – 2022)

Infonavit’s projected mortgage portfolio registered within its balance

(billions of pesos in mortgage loan portfolios, nominal values) Source: Infonavit (Financial Plan 2018 – 2022) Source: Infonavit (Financial Plan 2018 – 2022)

Infonavit expects to originate ~372 thousand loans per year for the next five years (2018 to 2022), which translates in a CAGR (’18 – ’22) of 7.2%

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Infonavit´s total mortgage loan portfolio

90.1 100.2 91.1 75.2 64.3 69.4 87.3 81.0 99.1 62.5 30.8 47.5 40.6 34.4 32.5 34.2 38.5 39.8 41.0 35.3 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Originated loans in thousand Originated loans in billion pesos 6.9 4.6 5.5 6.4 5.4 5.2 10.2 5.8 7.0 6.8 TFOVI 13U TFOVI 13 2U TFOVI 13 3U TFOVI 14U TFOVI 14 2U TFOVI 14 3U TFOVI 15U TFOVI 15 2U TFOVI 16 U TFOVI 17 U Issued Amount Annual Average (2013-2017)

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Fovissste expects to originate ~44 bn worth of mortgages annually

(amounts in billions of pesos)

Fovissste Loans: Projected Origination Historic mortgage loan origination

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

Source: FOVISSSTE (Annual Activity Report 2017). Source: FOVISSSTE (Annual Activity Report 2017).

External Financing (TFOVI issuances)

(amounts in billions of pesos)

Annual Average = 12.7

Source: BMV.

Fovissste’s Mortgage Loan Origination

(1) Source: ISSSTE Statistical Yearbook 2017. (amounts in billions of pesos)

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$39.8 $41.0 $35.3 $44.0 $46.0

2015 2016 2017 2018E 2019E 2013 = 17.0 2014 = 17.0 2016 = 7.0 2017 = 6.8 2015 = 16.0

146.3% 65.5% 62.9% 49.0% 33.4% 40.9% 21.4% 9.9% 9.1% 8.9%

Switzerland UK USA Spain EU Germany Chile Mexico Brazil LatAm

$972 $1,087 $1,173 $1,276 $1,395 $1,515 $1,603 $1,720 $1,890 $2,079 $2,248 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Modest increase in NPL’s following the 2008-2009 financial crisis, mainly due to collection through payroll deduction mechanisms 12

(Ps. $ in billions, in nominal values)

Source: CNBV, Infonavit and FOVISSSTE.

Sub-penetrated mortgage market with steady growth levels while maintaining stable levels of asset quality

The mortgage market has exhibited constant growth The Mexican mortgage market continues to have low penetration

(% of mortgage loans / GDP, 2016)

Source: EMF and HOFINET. (1) Includes Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama, Peru, Uruguay and Venezuela.

(1)

While maintaining consistent levels of asset quality

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Source: Bank of Mexico, IMSS, CNBV, Infonavit, Fovissste and SHF.

3.1% 1.4% (4.7%) 5.1% 4.0% 4.0% 1.4% 2.3% 2.6% 2.3% 2.1% 4.2% 2.1% (3.1%) 3.8% 4.3% 4.6% 3.5% 3.5% 4.3% 5.0% 4.4%

5.6% 5.8% 6.4% 6.4% 6.2% 5.8% 6.0% 5.9% 5.9% 6.2% 6.3% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

GDP México (growth) Formal Employment (growth) NPLs as % of total loans

Annual Inflation of main countries

Source: WID. 6.5% 3.6% 4.4% 3.8% 3.6% 4.0% 4.1% 2.1% 3.4% 6.8%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mexico USA Germany Brazil Switzerland

• 4. Strategic alliance with Infonavit,

Fovissste and Smart Lending

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FHipo currently participates in the following mortgage origination programs:

Source: Infonavit, Fovissste y Smart Lending.

Note: VSM means times minimum wage, which is the index calculated by multiplying the current unit of measurement of valuation (UMA, 2018 – Ps. $78.43) by the average number of days in a month, each year (30.4 days). (1) Net revenue paid to FHipo derived from the Smart Lending’s portfolio, excludes insurance/accessories, origination fee and administration fee, expenses that are covered by Smart Lending through the revenue generated from the mortgages (TAC). (2) Assumes a FX MXN $18.0 per USD. (3) 30%/28% if house does not have eco-technology, and 32%/30% for houses with eco-technology.

Program Characteristics) Income Level 4.5 VSM onwards 3.5 VSM to 5.0 VSM 1.0 VSM onwards N/A N/A Target Destination Home acquisition (guaranteed by a valid mortgage) Borrower’s Age 18 - 64 years Maximum Loan Amount ~ USD $96.6 K (2) ~ USD $20.7 K (2) ~ USD $98.7 K (2) N/A N/A Interest Rate 8.5 - 10.0% (VSM) and 12.0% 12.0% 10.9% 5.0 - 6.0% (VSM) (TAC) ~ 12.5% - 13.5% (1) Term Up to 30 years Maximum LTV at Origination 95% 90% 95% 95% 90% Maximum PTI at Origination 30% - 32% (3) 28% - 30% (3) N/A 32% Eligibility Criteria Collection Collection through payroll deduction Debit deduction Additional Program’s Criteria

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 at least 6 months Mortgage loans have to be current, without non-payments, carryovers or in risk of extension FOVISSSTE, sole and legitimate

• wner of the assigned loan

portfolio The borrower must have a minimum of 6 months of sustained employment. Total Debt Service Ratio (TDSR) minimum of 0.65 and maximum

• f 0.75 (differs by income level)

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(1) The co-participated percentage has evolved positively in accordance with the monthly origination and the income levels of our borrower’s.

Mortgage origination process

4

Structure of the assignment of collection rights on FOVISSSTE’s portfolio Participation structure in INFONAVIT’s Programs

FHipo works as a strategically of INFONAVIT, FOVISSSTE and Smart Lending through their mortgage loan origination. Below, the structure used to participate loans with such institutions

FOVISSSTE transfers mortgage portfolio 1 FOVISSSTE Administration Trust Trustee issues certificate of Fiduciary rights 2 FOVISSSTE transfers certificate of fiduciary rights to FHipo 3 FHipo pays FOVISSSTE the price of the certificate of fiduciary rights 4 Primary Servicer and Adviser & Manager Mortage Origination FHipo co-participates the loans that meet with the eligibility criteria. Collection of interest and amortization Interest and Amortizations Servicing Fee % Loan Evaluation House acquisition 1 2 5 6 7 Loans subject to acquisition 3 Return of non- qualifying loans FHipo co- participates a % (1) of qualifying loans 4

$

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• 8. Experienced management team

with robust governance standards

Mortgage origination process (Cont.)

• Smart Lending is a technological plataform that seeks to penetrate

the Mexican mortgage market through the origination of mortgage loans via an efficient, dynamic and accurate platform

• Combining an innovative technological platform with an experienced

management team, with knowledge and background in the mortgage sector, SL aspires to take advantage of its "first mover advantage" and consolidate as the largest mortgage origination platform in the country Objective:

• Automate mortgage origination processes by reducing the

number of people involved while simplifying procedures and structures How will it be achieved?

• Smart Lending will adapt to the needs of its customers with

a functional technological platform and exceptional service, providing an alternative to the complicated and traditional procedures of the past Origination Terms

Pre-approval in real-time Approval (~ 12 hrs) Formalization (~ 3 weeks)

• Cont. Admin.

(Personalized)

About Smart Lending

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Derived from the strategic alliance, FHipo will benefit by expanding its origination pipeline and diversifying its mortgage offer, which will allow FHipo to diversify risk and access new market opportunities by participating within a new income sector.

 Competitive interest rate  Loans from Ps. $1.0 million  Simplification and reinvention of the origination process  Processes 3x (times) faster than those from financial institutions  Loan formalization in ~3 weeks Competitive Advantage Structure of the strategic alliance between FHipo and Smart Lending

1 3 2 Absorbs credit risk

Smart Lending transfers the rights associated with the originated loans (1) FHipo provides resources to fund mortgage loans Smart Lending grants mortgage loans

2 1 3 4

Interest and amortizations are paid to SL by the borrower

5

Interest and amortizations flow from SL to FHipo

5 4

(1) Assumes that the loans to be originated meet Fhipo´s eligibility criteria.

• 5. Strong growth potential, coupled

with high barriers to entry

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5

We continue to benefit from high entry barriers

1 2 4 5

First mover advantage with proven track record regarding

• rigination and financing strategies

Solid IT platform, with high complexity of being replicated Know-how and industry expertise Strategic investments aimed to maximize the return to the holders of the company's CBFIs

VEHICLE WITH STRONG GROWTH POTENTIAL

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Agreements with Infonavit, Fovissste and Smart Lending to acquire and originate mortgage loans Leverage strategy aimed to distribute attractive and stabilized returns

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• 6. High-quality portfolios

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Low-risk mortgage portfolio with predictable low losses coupled with improving labor fundamentals - INFONAVIT

(1) Expected Loss of the portfolio originated through the Infonavit Total Program. The portfolio originated through the Infonavit Más Credito Program is expected to maintain a superior performance. (2) FHipo's analysis with Moody's public information.

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15% of employees lose their job during a 10yr period… (Infonavit’s portfolio) …however, expected credit losses are only 3% (Infonavit’s portfolio) Total NPLs of CEDEVI and TFOVI securitizations

(NPLs as a % of total securitized portfolio)

SIMILAR UNDERLYING ASSETS TO THOSE OF FHIPO 15% 6% 3% 9% 3%

>4 VSM unemployement level Continues to pay Default Foreclosure Credit loss in life

• f loan

Collection effectiveness is reduced to 60% when there is no employment relationship, which means 9% will still be performing loans 50% recovery of defaulted loans

Source: Infonavit’s 2013-2017 Financial Plan. Analysis FHipo with Moody's public information. Source: Infonavit’s 2013-2017 Financial Plan.

Unemployment levels >4 VSM

FOVISSSTE - 84% (2) = 0.7% FOVISSSTE = 3.66% FOVISSSTE ~4.36% (2) FOVISSTE has a similar accumulated credit performance as does Infonavit, however, in an annual basis the Expected Credit Loss is inferior given that loans have longer duration. 4.00% 5.93% 2.25% 1.41% 0.77% CDVTOT 11U CDVTOT 12U CDVTOT 13U CDVTOT 14U CDVTOT 15U 4.35% 4.39% 4.27% 5.99% 5.07% 1.91% TFOVIS 11U TFOVIS 11-2U TFOVIS 12U TFOVIS 12-3U TFOVIS 13U TFOVIS 14U

Source: Documentation and CDVITOT reports and Fitch Ratings TFOVI report as of November 30,2017

FHipo‘s portfolio has had a better than expected behavior

11.90%

15% 0% 10% 20% 10 20 30 40 50 60 70 80 90 100 110 120 Months since origination 11.9% Infonavit’s historical performance FHipo’s current portfolio

• 7. Attractive risk-return profile

TIIE TIIE TIIE 3.46% 2.49% 2.91% 4.13% 1.53% 0.70% 0.60% (SWAP) 7.00% 8.78%

CBF LT 1 CBF LT 2 CDVITOT 13U CDVITOT 14U CDVITOT 15U FCB 17U Warehousing Facilities CBF ST 0217 CBF ST 0118

Fixed Rate Pesos SWAP Margin Fixed Rate UDI TIIE

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Diversified Sources of Funding

Competitive Funding rates

FHipo has achieved financing through different types of leverage structures, through private institutions and the local debt market.

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

Long-Term Funding Short-Term

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Funding Structure

(figures in million of pesos) (1) Considers two SWAPs with a total notional principal of Ps. $4.5 bn. (2) Includes the used portion of warehousing facilities of HSBC, NAFIN, BID and IFC.

(1) (2)

Sources of Funding Type of Funding Benchmark Rate Margin Maximum amount Amount Withdrawn Maturity Date / Duration

CDVITOT 15U Securitization UDIBONO 2019 (1.80%) +110 bps

• $1,775

Financial Duration: 2021 CDVITOT 14U Securitization UDIBONO 2018 (1.30%) +119 bps

• $852

Financial Duration: 2020 CDVITOT 13U Securitization UDIBONO 2017 (1.54%) +192 bps

• $1,127

Financial Duration: 2019 FHIPOCB 17U Securitization UDIBONO 2025 (3.11%) +102 bps

• $3,435

Financial Duration: 2025 Short-Term Bond “FHIPO 00118” Unsecured Bond TIIE28 +60 bps

• $500

May 2019 Short-Term Bond “FHIPO 00217” Unsecured Bond TIIE28 +70 bps

• $500

October 2018 Credit Facility – Banorte Warehousing Line TIIE28 +205 bps $7,000 $0 (1) Legal Term: 2025 (Revolving) Credit Facility – IDB Warehousing Line TIIE28 +165 bps $1,397 $1,397 (1) 2023 (Revolving) Credit Facility – HSBC Warehousing Line TIIE28 +150 bps $5,000 $5,000 (1) Legal Term: 2050 (Revolving) Credit Facility – NAFIN Warehousing Line TIIE28 +165 bps $5,000 $2,520 (1) Legal Term: 2050 (Revolving) Credit Facility – IFC Warehousing Line TIIE28 +135 bps $2,000 $2,000 (1) Legal Term: 2025 (Revolving) Long-Term Bond “FHIPO 16” Covered Bond Fixed Rate = 7.00%

• $3,000

2021 / Legal Term: 2051 Long-Term Bond “FHIPO 17” Covered Bond Fixed Rate = 8.78%

• $500

2022 / Legal Term: 2052

9.50% 5.40% 4.00% 4.00%

10.8% 10.9% 12.0% 13.5% 9.4% 13.5%

IMC 2015 (Pesos) IMC 2017 (Pesos) Infonavit Total (Pesos) Infonavit Total (VSM) Fovissste (VSM) Smart Lending Increase in VSM Interest Rate TIIE TIIE TIIE 3.46% 2.49%

2.91% 4.13% 1.53% 0.70% 0.60%

(SWAP) 7.00% 8.78%

CBF LT 1 CBF LT 2 CDVITO 13U CDVITOT 14U CDVITOT 15U FCB 17U Warehousing Facilities CBF ST 0217 CBF ST 0118

Fixed Rate Pesos SWAP Margin Fixed Rate UDI TIIE

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Attractive risk-return profile

• FHipo continues to have an efficient financial margin even after having considered the recent surges of the local benchmark rate.
• Our assets continue to have competent yields and this coupled with competitive long term debt cost, establishes FHipo as an attractive investment for

the public investors.

Attractive Financial Margin (Asset Yield vs. Debt Cost)

Source: Infonavit, Fovissste and FHipo’s quarterly reports.

Attractive Asset Yield of our origination programs

Attractive financial margin between Asset Yield and Debt Cost

Competitive Long-Term funding rates

1) (1) Considers two SWAPs with notional amount of Ps. $4.5 bn. (2) Includes the used portion of warehousing facilities of HSBC, NAFIN, BID and IFC. (3) Net income paid to FHipo derived from the Smart Lending portfolio, excludes insurance / accessories, commission for origination and commission for administration, expenses that cover a level of Smart Loan through the income from mortgages (CAT).

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(1)

Long-Term Funding Short-Term

(2)

(3)

• 8. Development of the Mexican

Housing Sector

Social Impact Global Offering’s Distribution Improving Worker’s Savings

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Promoting the development of the Mexican Housing Sector

• Part of Fhipo´s equity came from abroad:
• FHipo, as a new asset class, has generated greater appeal for the Mexican

mortgage market, expanding the exposure and awareness of such sector in the international markets, demonstrating the immense opportunities available within this segment.

• FHipo, through resources obtained within the capital markets has and

continues to improve the terms and conditions of the Mexican mortgage market, while at the same time creating attractive returns to its local and international investors.

• Through its global offerings, FHipo has brought external investment and

continues to construct a more liquid mortgage industry in Mexico.

(1) Follow-On Equity Offering (April 19, 2016).

• FHipo, as the first MREIT in Mexico, obtained investments from

Mexican pension funds (AFOREs).

• As a vehicle floating in its entirely in the Mexican Stock Exchange, FHipo

has contributed to both the savers, through attractive distributions to these invested AFOREs, and the workers/borrowers by creating a more competitive mortgage market, which in turn, has attained better terms and conditions for the industry as a whole. AFOREs (Mexican workers) participate in FHipo FHipo finances residential mortgage loans to Mexican workers Workers have greater

• pportunities to obtain a

home FHipo distributes a % of net profit, benefiting investors (AFOREs)

• FHipo, by acquiring/originating Infonavit and Fovissste mortgages, creates

greater competitiveness within the industry, encouraging the private sector to invest in a segment currently unattended by the commercial banks in

• Mexico. The latter, boosting mortgage supply, one of the key growth and

development promoters in Mexico.

• FHipo represents a breakthrough in mexican history, instrument that
• btained resources of funding from International Investors to supply and

contribute to the development of the mexican mortgage market, thus enhancing growth in the housing industry.

• FHipo finances mortgages to worker’s with income levels below 4.0 VSM,

becoming the only relevant private player originating loans to the low- income population.

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• 9. Experienced management team

with robust governance standards

• CH has a structure of + 30 people dedicated to the management of the vehicle
• Senior Management
• Legal Counsel
• Data Analysts
• Financial Planning
• Concord provides portfolio analysis through a built-to-suit platform designed for FHipo
• Data analysis
• Analysis to select applicable loans

CH structure and key responsibilities

• Investor Relations & Reporting
• Risk Management
• Physical file Due Diligence

Technical Committee structure

• Max. # of members

Independent members

Technical Committee Corporate Practices Subcommittee Audit Subcommittee Nominations Subcommittee

21 > 50% ≥ 3 Odd, ≥ 3 100% ≥ 3 100%

Members

(1)

27

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Experienced management team and strong governance standards

Organizational structure Daniel Braatz CEO Ignacio Gutiérrez CFO Jesús Gómez COO Diego Gutierrez CLO Primary Occupation 1 Alfredo Vara Non-independent members 2 Daniel Braatz Non-independent members 3 Jesús Gómez Non-independent members 4 Sebastián Fernández Independent members 5 Margarita de la Cabada Independent members 6 Daniel Reséndiz Independent members 7 Vicente Corta Independent members 8 David Proman Independent members Name

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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.