Slide 1: Corporate Presentation
Investment that Transforms Corporate Presentation As of March 31st, 2022 INVESTOR RELATIONS inverstorrelations@fhipo.com Ph: +52 (55) 4744-1100 [ENGLISH TRANSLATION FOR INFORMATION PURPOSES ONLY, IN THE EVENT OF ANY CONFLICT, THE SPANISH TEXT SHALL PREVAIL] www.fhipo.com
Slide 2: Investment highlights
Investment highlights 1 About FHipo 8 2 Experienced management Macroeconomic team with robust corporate environment governance 3 7 Attractive Mexican Attractive risk-reward mortgage market profile with strong dividend fundamentals generation \ 4 Co-participation agreements 6 with INFONAVIT, FOVISSST
Slide 3: 1. About FHipo
“Hige 1. About FHipo
Slide 4: FHipo is the first vehicle in Latin America similar to an American Mortgage REIT
FHipo is the first vehicle in Latin America similar to an 1 American Mortgage REIT… REITs market in Mexico Mexican REIT market is created in 2011 First lodging REIT in Mexico is created in 2012 2011 First infrastructure and education 2012 REITs in Mexico 2013 During 1Q20, the internalization
Slide 5: FHipo and its key milestones since its IPO
1 FHipo and its key milestones since its IPO Mortgage origination 1st & ONLY MREIT in Mexico Ps. 8.63 bn IPO in November 2014 and Ps. 3.30 bn Follow-On in April 2016 Created to acquire, originate and manage mortgages in Mexico Co-participation agreements with and , the largest mortgage lenders with
Slide 6: Organizational Structure
1 Organizational Structure Committees: Technical Committee Audit >100% > 50% Corp. Practices >100% Nominations >100% CBFI Holders Independent Members 100% Holders Assembly Technical Committee (TC) Subsidiary of FHipo, formed by Internal Advisor professionals with experience in Internal Advisor and M
Slide 7: 2. Macroeconomic environment
2. Macroeconomic environment 7
Slide 8: Occupation, Employment and Mortgage Rates in Mexico
2 Occupation, Employment and Mortgage Rates in Mexico Formal economy stability and low levels of unemployment (Insured workers in 000s and unemployment as % of Economically Active Population) 21,000 9.0% 19,500 7.0% 18,000 5.0% 16,500 3.0% 15,000 1.0% Insured Workers Unemployment Source: IMSS and IN
Slide 9: 3. Attractive Mexican mortgage market fundamentals
3. Attractive Mexican mortgage market fundamentals9
Slide 10: INFONAVIT's Mortgage Loan Origination
3 INFONAVIT’s Mortgage Loan Origination INFONAVIT’s mortgage loan origination 2018 – 2022E INFONAVIT’s projected mortgage portfolio registered within its balance (Number of loans for the acquisition of a new or used home) (Billions of pesos in mortgage loan portfolios, nominal values) 381,390 374,24
Slide 11: FOVISSSTE's Mortgage Loan Origination
3 FOVISSSTE’s Mortgage Loan Origination FOVISSSTE historical origination 99.1 91.1 87.3 81.0 75.2 69.4 64.3 62.5 49.3 49.1 49.2 50.8 $40.6 $38.5 $39.8 $41.0 $34.4 $34.2 $35.3 $34.1 $35.0 $35.9 $36.8 $32.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Originated loans in thousand Origin
Slide 12: Sub-penetrated mortgage market with steady growth levels
3 Sub-penetrated mortgage market with steady growth levels Strong growth rates for the market Low penetration of the Mexican mortgage market (Mortgage Portfolio in billion pesos, in nominal values) (% of mortgage loans / GDP) 145.3% $2,787 $2,864 $2,586 $2,427 $2,276 $2,079 $1,890 64.0% $1,720 60.0%
Slide 13: 4. Coparticipation agreements with INFONAVIT, FOVISSSTE and YAVE
4. Coparticipation agreements with INFONAVIT, 13 FOVISSSTE and YAVE
Slide 14: FHipo currently participates in the following mortgage origination programs
FHipo currently participates in the following mortgage 4 origination programs: 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 ~ USD $86.9 K
Slide 15: INFONAVIT – Green Mortgage
4 INFONAVIT – Green Mortgage At INFONAVIT, every loan has a Green Mortgage. This means that all houses financed through INVONAVIT, have eco-technologies, which are accessories that save water, electricity and gas. What is a Green Mortgage? • It is an additional amount given to every loan in order to
Slide 16: Mortgage origination process
4 Mortgage origination process FHipo works as an strategic ally of INFONAVIT, FOVISSSTE and YAVE through their mortgage loan origination. Participation structure in INFONAVIT’s Programs Structure of the assignment of collection rights on FOVISSSTE’s portfolio 7 5 1 FOVISSSTE Administration Trust 2 1
Slide 17: Mortgage origination process (Cont.) – About YAVE
4 Mortgage origination process (Cont.) About YAVE (previous Smart Lending) Structure of the strategic alliance between FHipo and YAVE YAVE is a technological platform that seeks to penetrate the Mexican mortgage market through the origination of mortgage loans via an 5 efficient, dynamic and accur
Slide 18: 5. Strong growth potential
5. Strong growth potential18
Slide 19: FHipo's strengths
5 FHipo’s strengths First mover advantage with proven track record 1 regarding origination and financing strategies Strategic investments aimed to maximize the return to 2 the holders of the company's CBFIs Agreements with INFONAVIT, FOVISSSTE and YAVE to 3 acquire and originate mortgage loans Solid
Slide 20: 6. High-Quality Mortgage Assets
6. High-Quality Mortgage Assets20
Slide 21: Solid Asset Quality
5 Solid Asset Quality Evolution of the consolidated Non-Performing Loan Ratio (“NPL”) and the Allowance for Loan Losses NPL considering Portfolio's (1) Balance at Origination: 4.96% NPLs as a % of the Consolidated Portfolio (“CP”) as of the 1Q22 (1) NPLs / CP (1) with portfolio balance at originatio
Slide 22: 7. Attractive risk-return profile with quarterly distributions
7. Attractive risk-return profile with quarterly distributions22
Slide 23: Diversified Sources of Funding
7 Diversified Sources of Funding Securitizations Short-Term Warehousing Facilities Long-Term Unsecured Bonds Covered Bonds Issuance of securities / certificates, by an issuing trust Credit facility conceded by a Issuance of securities/certificates Issuance of with loans that collateralize private en
Slide 24: Attractive Risk-Return Profile
7 Attractive Risk-Return Profile Asset Yield - Origination Program Cost of Debt - Funding Rates (3) SWAP TIIE Fixed Rate Spread 16.8% Long-Term Short-Term (2) 12.8% 12.5% 11.9% 12.0% 10.8% 10.9% VSM (1) SWAP 8.96% 8.06% 8.37% 1.41% 2.00% 0.74% 0.71% 0.60% 0.65% 0.65% 0.60% VSM (1) 6.73% 4.13% TIIE T
Slide 25: 8. Development of the Mexican Housing Sector
8. Development of the Mexican Housing Sector25
Slide 26: Promoting the development of the Mexican Housing Sector
8 Promoting the development of the Mexican Housing Sector Global Offering’s Distribution Improving Mexican Worker’s Savings Part of FHipo’s equity came from abroad: FHipo, as the first MREIT in Mexico, obtained investments from Mexican pension funds (AFOREs). • FHipo, as a new asset class, has g
Slide 27: 9. Financial Results
9. Financial Results 27
Slide 28: Solid Financial Results in 1Q22
9 Solid Financial Results in 1Q22 Consolidated P&L Summary Consolidated Balance Sheet Summary Figures in thousands of MXN, except the Net Income per CBFI 1Q22 1Q21 Figures in thousands of MXN 1Q22 1Q21 Interest on mortgage loans $312,768 $506,991 Cash and cash equivalents $1,347,411 $1,153,142 Inves
Slide 29: Disclaimer
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