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GRUPO TRAXION CORPORATE PRESENTATION JULY 2019 DISCLAIMER The information contained in this document is strictly confidential and is subject to the provisions established in the Securities Market Law regarding the obligations of confidentiality

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GRUPO TRAXION

CORPORATE PRESENTATION

JULY 2019

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DISCLAIMER

The information contained in this document is strictly confidential and is subject to the provisions established in the Securities Market Law regarding the obligations of confidentiality and disclosure or transfer of privileged information. This document can be used exclusively by the receiver as an investor or possible investor of Grupo Traxion, S.A.B. of C.V. ("Traxion"), otherwise, the information contained in this document may not be disclosed without the prior authorization of Traxion. Certain information included in this document may contain certain future statements and information that reflects plans, objectives, expectations, estimates, and intentions. Derived from several risks and uncertain future events, the fulfillment of the same could differ materially from what is mentioned in said forward-looking statements and information that reflects plans, objectives, expectations, estimates, and intentions. Neither Traxión nor any of its affiliates, directors, officers, agents or employees shall be liable to third parties for any investment, business decision or actions taken based on the information and statements contained in this document.

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Products and Goods People

MOBILITY SERVICES

CARGO AND LOGISTICS PERSONNEL AND STUDENT TRANSPORTATION

Cargo and logistics services through the entire transportation supply chain Corporate and industrial personnel transportation, student transportation and charter services

SUPERIOR EXECUTION CAPABILITIES

TRAXION: THE LEADING COMPANY OF MOBILITY AND LOGISTICS SERVICES IN MEXICO

41% 59%

REVENUE BREAKDOWN

Fleet: +8,000 Power Units +427,000 sqm 3PL logistics area +1,000 Clients 7 Highly-renowned companies

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The broadest portfolio of cargo and logistics integrated services in the market SERVICES

▪ Domestic cargo

▪ International cargo & transfers

▪ Intermodal cargo

▪ Less-than-Truckload (LTL)

▪ Refrigerated cargo

▪ Specialized cargo (petrochemicals and materials)

▪ 3PL Logistics

▪ Last mile

▪ Packaging and courier

▪ Moving and relocation

BRANDS

MANUFACTURE SUPPLIER CUSTOMS/PORTS INTERNATIONAL CARGO INTERMODAL CARGO STORAGE DISTRIBUTION RETAIL/E-COMMERCE CONSUMER

Only supplier of integrated solutions through the entire transportation and logistics supply chain in Mexico

MANUFACTURER CUSTOMS/PORTS DOMESTIC CARGO INTERNATIONAL CARGO LOGISTICS DOMESTIC CARGO WAREHOUSE MANAGEMENT “HARD TICKET” AND MOVING LAST MILE DISTRIBUTION CENTER RETAIL E-COMMERCE CONSUMER

CERTIFICATIONS FLEET (2Q19)

▪ 2,114 trucks and thortons

▪ 600 last-mile units

▪ +4,000 trailers: dry, refrigerated, hoppers and platforms

TRAXION: THE LEADING COMPANY OF MOBILITY AND LOGISTICS SERVICES IN MEXICO

CARGO & LOGISTICS: Mobility of products and goods

3PL LOGISTICS SPACE

▪ 427,008 SQM

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Leading player both national and regional, with the largest footprint and infrastructure in Mexico

SERVICES

▪ Personnel transportation

▪ Student transportation

▪ Charters

BRANDS Pioneer and innovator of the personnel and student transportation industry in Mexico CERTIFICATIONS FLEET

2Q19 2018 2017 2016

3,399 3,833 4,039 5,373

Corporate staff Manufacturing personnel Service personnel Students Charters Corporate offices Industrial parks and manufacturing hubs Hotels, resorts and communities Schools and universities Private-group trips PERSONNEL TRANSPORTATION STUDENT TRANSPORTATION CHARTERS

COMPETITIVE ADVANTAGES

▪ +65 years of experience in the market through different brands

▪ State-of-the-art technological platform

▪ +500,000 people transported daily

Ranking Super Companies: in process of certification with Top Companies

TRAXION: THE LEADING COMPANY OF MOBILITY AND LOGISTICS SERVICES IN MEXICO

PERSONNEL & STUDENT TRANSPORTATION: Mobility of people

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WHY INVEST IN TRAXION?

INNOVATION AND TECHNOLOGY SUSTAINABLE GROWTH SCALE EFFICIENCY AND PROFITABILITY TRANSPARENCY AND INSTITUTIONALIZATION TRAXION… … is the first consolidator in a

highly fragmented industry dominated by family-owned companies … operates in a sector with strong fundamentals and growth potential

+ Accelerated growth in recent

years through:

▪ Solid capital structure; ▪ Profitable and effective

investment process

+ Also…

▪ EBITDA CAGR ‘17-’19E: 33% ▪ Fleet growth: 51x from 2011 to

2Q19

TRAXION has:

▪ State-of-the-art, tailored

support systems focused on efficiency and profitability

▪ Internally-developed systems

24/7 monitoring and

tracking

Telemetry and information

systems for continuous improvement and training

Commercial intelligence
Operational intelligence
Optimal fleet maintenance

TRAXION…

… has a diverse and flexible fleet, +2.5x larger than that of the next competitor … operates more than 427,000 sqm of 3PL logistics warehouse … has a diverse customer base of more than 1,000 clients with a strong presence in several industries and various regions with strong economic indicators … has a workforce of more than 14,200 employees

TRAXION…

… is able to generate an operating leverage, driven by purchasing power, capacity and volume … has a long-term, continuous and sustainable synergies approach … has a proven business model with a successful acquisition and integration track-record … has maintained and improved its operating margins during economic cycles

TRAXION…

… has an entrepeneurial and innovative team with superior execution capabilities … was created as an institutional company … is the only company in the industry backed by two private equity funds … is the first transportation company to develop a best- practices approach … is the first and only company

f its kind to carry out an Initial

Public Offering in financial markets

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NET INCOME OPERATING CASH FLOW

ACCELERATED AND PROFITABLE GROWTH

Cargo & logistics Personnel & student transportation TRAXION Figures in million pesos (MXN) *Pro-forma figures for acquisitions in 2016

3,790 4,029 5,491 5,642 1,022 1,709 1,281 1,813 2,303 3,522 2,311 3,043 3,911 5,642 837 1,126 955 1,255 1,792 2,382 2016PF* 2017A 2018A 2019E 1Q18 1Q19 2Q18 2Q19 1H18 1H19 731 645 949 1,116 127 330 228 356 356 687 350 605 854 1,116 169 257 202 285 371 542 2016PF* 2017A 2018A 2019E 1Q18 1Q19 2Q18 2Q19 1H18 1H19

REVENUE EBITDA

CAGR ‘16PF - ’19E: 22.8% CAGR ‘16PF - ’19E: 23.3%

35 337 434

83 250 71 101 154 2016PF* 2017A 2018A 1Q18 1Q19 2Q18 2Q19 1H18 1H19 396 434 824 10 322 222 464 232 786 2016PF* 2017A 2018A 1Q18 1Q19 2Q18 2Q19 1H18 1H19

6,100 7,072 9,403 11,283 1,191 1,259 1,859 2,836 52.5% 2,236 3,069 4,095 5,904 37.2% 44.2%

19.4% 17.8% 19.0% 19.8% 15.2% 20.2% 19.1% 21.0% 17.3% 20.6%

1,785 2,231 282 572 428 646 710 1,218 102.3% 50.8% 71.4%

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FAVORABLE DEMOGRAPHIC PROFILE MANUFACTURING AND INDUSTRIAL ACTIVITY

Installed manufacturing capacity Demographic bonus Emerging middle- class Geographic location Qualified and skilled workforce Employment level Drives Internal Consumption Attractive Investment Destination Women Men DEMOGRAPHIC PYRAMID1 – Mexico 65.2% of the population is between 15 and 65 years

450.6 239.7 75.5 61.6 48.9 41.8 México Brasil Chile Argentina Perú Colombia

1.9x EXPORTS 20182 – Billion USD

POSITIVE GROWTH PROSPECTS

>85

1 INEGI 2 World Trade Organization

Years

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SECTOR WITH SOLID FUNDAMENTALS AND POSITIVE OUTLOOK

Source: Transportation Minisitry (SCT)

TRAXION is the leading company in a sector trending towards intitutionalization and high growth

194 199 206 215 221 232 226 235 245 260 273 290 123 127 133 143 152 162 186 202 222 246 272 299 2013 2014 2015 2016 2017 2018 3 3 3 3 4 7 7 7 7 7 11 12 12 12 13 27 27 29 32 34 2014 2015 2016 2017 2018

LARGE COMPANIES HAVE SHOWN GREATER GROWTH… …IN A KEY SECTOR TO MEXICO´S ECONOMY

729 763 806 865 917 983 48 49 51 55 CARGO TRANSPORTATION

Thousand of power units

PASSENGER TRANSPORTATION

Thousand of power units

58

10.0% 5.6% 5.2% 3.6% CAGR ’13 -’18 6.2%

Owner-operator (1-5 units) Small companies (6-30 units) Medium companies (31-100 units) Large companies (>100 units)

6.3% 3.1% 1.5% 5.7% CAGR ’14 -’18 3.9% ▪ The transportation industry in Mexico represents 5.6% of GDP ▪ Within the industry, cargo and passenger transportation are the most relevant

Cargo transportation 50.7% Passenger transportation 31.8% Services 7.7% Air 3.2% Rail 3.1% Maritime 1.2% Pipeline 1.2% Storage and refrigeration 1.2%

▪ Contribution to GDP is lower in other countries:

➔ 4.6% of GDP ➔ 3.0% of GDP ➔ 5.0% of GDP

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STATE-OF-THE-ART TECHNOLOGICAL PLATFORM

Constant innovation Initiatives plan Best practices Robust platform IT Committee

BASIC FOUNDATIONS SUPPORT SYSTEMS

Efficient fleet management Telemetry and safety protocols Constant tracking and monitoring Commercial and business intelligence Commercial and administrative support

RESULTS

EFFICIENCY PROFITABILITY CLIENT SATISFACTION + Internally-developed systems + Tailored support systems

▪ Business management

▪ Commercial inteligence

▪ Telemetrics

▪ 3PL logistics & warehouse management

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THE SCALE OF TRAXION

The size and volume of TRAXION’S operations allow for economies of scale, ensure the continuity of the sinergies plan and guarantee long-term efficiency

1 TRAXION: 2Q19 Report, includes 600 last-mile units; Senda: fleet as of June 30, 2017; Grupo Transportes Monterrey: Magazine T21, December 2018.

1,000,000 427,000 400,000 322,000 320,000 300,000 215,000 200,000 190,000 170,000 2,114 2,199 5,373 1,887

600 TRAXIÓN Transportes Monterrey Grupo Senda Cargo Fleet Personnel Transportation Fleet Last-Mile Fleet

THE TRAXION FLEET IS SIGNIFICANTLY GREATER THAN THAT OF ITS NEAREST COMPETITORS

Power units1

TRAXION IS ONE OF THE LARGEST 3PL LOGISTICS OPERATORS IN MEXICO

Source : Integration Mexico; TRAXION space as of June 30, 2019

SQM 3PL logistics warehouse space

8,087 2,199 1,887

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EXTENSIVE AND DIVERSE CLIENT BASE

Figures as of December 2018

36% 23% 19% 6% 6% 6% 4% Retail Auto Industrial Education Electronics Government Other Top 10 26% Top 20 38% Top 30 46% Top 40 52% Top 50 57% Other 43%

INDUSTRY BREAKDOWN CLIENT CONCENTRATION 67 27 23 23 23 22 21 20

1 2 3 4 5 6 7 8

THE SCALE AND DIVERSIFICATION OF TRAXION´S CLIENT BASE RESULTS IN A BUSINESS MODEL RESILIENT TO VOLATILE ECONOMIC CYCLES WORLD-CLASS CLIENTS… …WITH LONG-LASTING RELATIONSHIPS

Average: 26 years

SEARS WALMART

% of revenue 12

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TRAXION HAS A BUSINESS MODEL FOCUSED ON EFFICIENCY AND PROFITABILITY

TRAXION has an investment and follow-up process that guarantees the CapEx profitability at all times CAPEX ANALYSIS MONITORING, WITHDRAWAL AND FLEET REALLOCATION

MONITORING of the approved CapEx

performance Key metrics:

Revenue EBITDA ROIC IRR

WITHDRAWAL of non-profitable clients that

don´t comply with the profitability metrics of the Company +50 withdrawn clients in 2018

REALLOCATION of the fleet to more profitable

clients

Cargo Segment1 2017 2018 ∆% 1Q18 1Q19 ∆% 2Q18 2Q19 ∆% Average Fleet 1,570 1,543 (1.7)% 1,642 2,103 +28.1% 2,114 1,625 +30.1% Kilometer volume 172.9 189.3 +16.5 41.1 59.5 +44.9% 44.4 64.6 +45.4%

Avg. Revenue / km.

19.58 21.55 +10.0% 19.94 21.88 +9.7% 21.54 22.46 +4.3%

Avg. Cost / km.

14.95 15.63 +5.3% 15.68 16.94 +8-0% 15.87 16.29 +2.6%

▪ With a smaller average fleet in 2018, 16.5 million kilometers were driven more than in 2017 ▪ The revenue per kilometer grew 4.3%, while the costs only increased 2.6%

GREATER PRODUCTIVITY AND EFFICIENCY

Thorough CapEx allocation process to maximize profitability:

▪ Clear, predetermined parameters for quoting and pricing of new business opportunities

▪ CapEx approval through the CapEx Committee, depending on:

Internal Rate of Return (IRR) >20%
Return on Invested Capital (ROIC) >14%

New Client / Business Opportunity Contract Drafting / Pricing Process Analysis from CapEx Committee

ROIC IRR

CAPEX APPROVAL FOR CLIENT

1 Average fleet for the period; kilometer volumen in million kilometers; revenue and cost in pesos (MXN)

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SHARED-SERVICES CENTER

The Shared-Services Center ensures a sustainable long-term synergies plan FRONT BACK SHARED-SERVICES CENTER

Effective corporate structure Back-office and administrative processes centralization Improved procurement conditions Shared infrastructure in

ffices, terminals, yards and

maintenance shops High cross-selling potential across services and subsidiaries

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TRAXION was founded in 2011 and has had solid institutional infrastructure, with the support of Discovery Americas and Nexxus Capital, two of the leading private equity funds in Mexico

SOLID CORPORATE GOVERNANCE GUIDELINES AND A MANAGEMENT TEAM WITH SUPERIOR EXECUTION CAPABILITIES

CORPORATE GOVERNANCE ABY LIJTZSAIN – Executive President RODOLFO MERCADO - CEO WOLF SILVERSTEIN – CFO

+ Board of Directors

▪ 15 members

▪ 10 independent – 66% + 4 Committees Audit Committee Corporate Practices Committee Compensation and Nominations Committee Executive Committee

▪ +21 years of experience

▪ Founded TRAXION in 2011

▪ Founded Transportes LIPU in 1998, pioneer in personnel and student transportation, and created the largest company in Mexican transportation sector.

▪ Led the capitalization processes of Discovery Americas and Nexxus Capital

▪ Has a track record of acquiring and integrating more tan 15 companies

▪ Responsible for executing the TRAXION business plan with a 100% strategic approach, leading planning, new-business development, and supervising the capital deployment

▪ Certified Public Accountant from Instituto Tecnológico Autonomo de Mexico

▪ +20 years of experience

▪ COO of SETTEPI from 1994 to 2014

▪ COO of LIPU from 2014 to 2016

▪ COO of TRAXION from 2016 to 2018

▪ Responsible for the Company´s expansion and development plans

▪ 100% operational vision and management, with a focus on profitability and sustainable growth

▪ Certified Public Accountant with diploma in senior management from Instituto Tecnológico de Estudios Superiores de Monterrey

▪ +12 years of experience

▪ CFO of LIPU since 2013; held other administrative and operative positions since 2007.

▪ Led the implementation of the Shared-Services Center of LIPU

▪ Actively participated in the capitalization processes of Discovery Americas and Nexxus Capital and played a fundamental role in the Initial Public Offering process of TRAXION

▪ 100% operational vision and focus on efficiency and performance

▪ Bachelor of Arts and Business Administration from Universidad Iberoamericana and Master in Finance by Instituto Tecnológico de Estudios Superiores de Monterrey

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DIVERSIFIED SHAREHOLDER BASE AND FAVORABLE PERSPECTIVE

DIVERSIFIED SHAREHOLDERS´BASE POSITIVE PERSPECTIVE Research Coverage

RECOMMENDATIONS AND REMARKS ABOUT TRAXION

“Traxion has a positive outlook with defined growth avenues and a clear strategy of leveraging its services through cross selling and efficiencies from economies of scale” “In our opinion, the company should continue to make progress and prove quarter after quarter that its business model creates value in the long term. As of now, we believe that Traxion is well positioned to take advantage of a fragmented industry” “Traxion has a low to the current political risks; however a pressing concern could be the gasoline price policy that the federal government will pursue, nonetheless, we believe the company is well prepared for any near-term changes in this regard”

MOST RECENT DATE TARGET PRICE RECOMMENDATION 07 MAY 19 $17.50 BUY 03 MAY 19 $21.00 OVERWEIGHT 29 MAY 19 $21.50 BUY 29 ABR 19 $16.80 NEUTRAL 29 ABR 19 $18.30 BUY 28 FEB 19 $16.00 BUY AVERAGE $18.35

43.5% 25.3% 10.0% 11.7% 9.5% Float Discovery Americas Nexxus Capital Founders Management

43.5% of float is distributed amongst more than 15 institutional investors, with a broad base of retail investors

16.7% 83.3%

Neutral Buy / Overweight

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