Grupo TRAXION

Corporate Presentation

Santander XXII Annual Latin America Conference

Cancun, Mexico

January, 2018

Disclaimer

The material that follows presents general background information about Grupo Traxion, S.A.B. de C.V. (the “Company”) as of the date of the presentation. This information consists of

information concerning the Company. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors and

does not form the basis for an informed investment decision. This presentation is strictly confidential and may not be disclosed to any other person.

The information in this presentation is preliminary in nature and subject to change. No representation or warranty, express or implied, is made concerning, and no reliance should be

placed on, the accuracy, fairness or completeness of the information presented herein. All information in this presentation is subject to verification, correction, completion and change

without notice. In giving this presentation, none of the Company, any of its affiliates, directors, officers, agents or employees, nor any placement agents, managers or initial purchasers

undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any information or to correct any inaccuracies in any such

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cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business

environments of the Company and its subsidiaries that may cause the actual results of the Company to be materially different from any future results expressed or implied in such

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defined in Rule 144A under the Securities Act. Any offering of securities to be made outside of Mexico will be made by means of an offering memorandum that will be sent to you at

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The Company’s management highly recommends the investment community to thoroughly review the information contained in the offering memorandum and consult with independent

advisors deemed necessary before making any investment decisions. A stock investment is complex, is subject to a variety of risks and uncertainties and may result in significant

losses, including the full amount invested.

Who is Traxion?

TRAXION: The largest transportation and logistics investment platform in Mexico

Core strategy

▪ Integrate a transportation and logistics platform in an accretive manner and maximize its efficiency

▪ Render a one-stop solution for cargo and logistics

▪ Operate companies under a best-practices approach to optimize performance

▪ Create sustainable long-term value for clients, investors, and stakeholders

Service Segments

Cargo & Logistics Passenger

3

5,319 Power units

5Leading companies

Ps. 6.7 billionLTM revenues1

+9,500

Employees

+365 Million kilometers driven annually

+900Clients

17.5xFleet growth in 6 years

Nationwide Footprint

1,562 power units

+307,000 sqm of logistics

space (3.2 mm sqft)

3,408 dry vans

~5.2 years avg. fleet age

(16.6 years avg. of sector)

Student transportation &

personnel commuting

3,758 power units

1 Last-twelve-months accumulated revenues

Financial and operating data as of September 30, 2017

Exceptional Growth Story

300 316

752 760 776

4,963

5,319

2011 2012 2013 2014 2015 2016 2017

IPO

17.5x

Fleet growth

2.3x

Larger than the immediate

competitor

5.7x

Larger than the average

company in the sector

Ps. 3.9 bn

Successfully invested in

M&A since 2011

Fleet(power units)

4Companies logos indicate the date of integration to Traxion

Fleet CAGR

61.5%

Undisputed Leadership

International Freight

AutoExpress

Frontera NorteTransportadora Egoba Grupo MyM Grupo SID LIPU Transporte Seguro

5

Domestic freight

Intermodal

Student transportation

Services

International freight

& border transfers

Logistics services

Relocation and moving

Less-than-truckload

(LTL)

Personnel commuting

Tourism

Domestic freight and

Moving

Logistics and Domestic

Freight

International Freight

and Intermodal

Personnel Commuting

and Student

Transportation

Leader Leader Leader Leader Leader

Unique Investment Opportunity

Attractive valuation relative to peers

Highly-fragmented sector provides accretive growth opportunities

Sound balance sheet: low leverage and stable margins

Proven M&A track record

Attractive sector with significant organic growth potential

We believe we are the only consolidator in the sector in Mexico

Only consolidator with financial capacity to seize growth opportunities in an accretive manner

6

Best-in-class operating platform, supported by market best practices, ensures high performance

Diversified Business Model

51%

11%

38%

Cargo Logistics Passenger

36%

23%

19%

6%

3%

3%

11%

Retail Auto Industrial

Education Electronics Government

Other sectors

Client Sector % of Revenue Segment served

1 Retail 5.0% Cargo

2 Food 2.8% Logistics

3 Pulp & paper 2.7% Cargo

4 Retail 2.7% Cargo

5 Government 2.4% Cargo

6 Auto 2.3% Passenger

7 Auto 2.2% Passenger

8 Retail 2.0% Cargo

9 Auto 2.0% Cargo

10 Electronics 1.7% Logistics

Top-10 client breakdown

Revenue Breakdown

by Segment

Revenue Breakdown

by SectorTop-50

57%

The top-50 clients represent 57% of

total revenues

Top-10 clients 26%

International alliances with top operators

+33 alliances with the best transportation players

Diversification contributes to a resilient business model

7Figures as of September 30, 2017

Sole Player Management Service Portfolio Track Record

…with extensive expertise in the sector through several buisness cycles

TRAXION is the leading transportation company in the country…

8

▪ Only publicly-traded company

within a family-owned sector

▪ First mover advantage

▪ Only consolidator in a highly

fragmented sector

▪ Seasoned management team;

extensive expertise in the

sector

▪ Sound corporate governance

bodies

▪ Industry best practices

▪ Premium, diversified service

portfolio

▪ Long-lasting relationships with

blue-chip clients

▪ Highest satisfaction levels and

retention rates

▪ Succesful growth track record

▪ Organic and inorganic growth

potential

▪ High efficiency in operations

and processes

Key Attributes

Proven M&A Track Record

AutoExpress

Frontera Norte

TRAXION has been able to successfully integrate several companies…

Transportadora Egoba Grupo MyM Grupo SID LIPU Transporte Seguro

Acquisition: Dec 2011

Fleet: 300

▪Commercial strategy

▪Administrative

insittutionalization

▪Business plan and

KPIs

Acquisition: Jun 2013

Fleet: 428

▪Commercial strategy

▪Administrative

insittutionalization

▪Business plan and

KPIs

9

Acquisition: May 2016

Fleet: 580

▪Fleet utilization

▪Optimize client base

Acquisition: Jun 2016

Fleet: 222

▪Boost fleet growth

▪Growth opportuities

with additional capital

Acquisition: Oct 2016

Fleet: 3,399

▪Client expansion

▪Achieve economies of

scale

▪Growth opportuities

with additional capital

Best practices conveyance Procurement efficiencies Commercial intelligence

…while maintaining financial discipline on each transaction

Balanced exposure to industries Diversification of service portfolio EBITDA efficiency

Competition Landscape

Cargo & Logistics Passenger Services

Truckload Intermodal Logistics Personnel Student Tourism

Company Power Units1 Domestic

Freight

Intnl

Freight &

Transfer

Relocation

& Moving

Less than

TruckloadInternodal

Logistics

Services

Personnel

CommutingStudent

TransportationTourism

4,9632

2,189

1,887

1,867

1,724

1,641

990

790

735

TRAXION provides the broadest and most complete offering of integrated transportation premium services

Large-scale Nationwide footprint Competitive cost structure

1 Includes trucks, buses and vans; excludes trailers

2 Proforma December 2016; Includes Egoba, MyM, Grupo SID, AFN and LIPU

Source: T21 Magazine, December 201610

Appealing Sector

11

Overview

▪ Trucking and bus transportation are essential components in an industrialized economy

▪ Virtually every manufactured or consumer product, and person is directly related to transportation

▪ Road is the main cargo method in Mexico

▪ Few companies offer premium, integrated services

▪ Large and fragmented industry (+865k power units)

▪ No player has even 1% market share

Opportunities

• Large companies outsourcing transportation services

• E-commerce expanding

• Fleet flexibility provides access to unattended markets

367 413 435 470 522

186

244284

273292

52

7790

105

120

1995 2000 2005 2010 2015

Road Maritime Rail

605

734809

848

934(excludes air freight)

Source: SCT

1 Includes all units as presented by SCT

2 CAGR includes all the units in the cargo and logistics segment

Million Tons Transported

191 203 194 199 206 215

207 221 226 235 245 260

112122 123 127 133

143148

170 186202

222246

2011 2012 2013 2014 2015 2016

Owner Operators (1-5 units) Small Companies (6-30 units)

Medium Companies (31-100 units) Large Companies (+100 units)

659716 729

763806

865Number of units (000s)1

Cargo Transportation Industry

Large companies have

growth faster than the rest

of the industry

2011-2016

CAGR

10.7%

4.9%

4.7%

2.4%

2011-2016

CAGR2

39.1%

Attractive Sector Fundamentals

Transportation is a very important component in the Mexican economy

Trasportation industry

in Mexico

Ps. 1,668 bn

Road

Air

Rail

Maritime

Ps. 1,432 bn

Ps. 153 bn

Ps. 64 bn

Ps. 19 bn

85.9% 9.2%

3.8%

1.1%

Road Air Rail Maritime

Transportation market

in Mexico

…and it is an extremely fragmented sector with tremendous consolidation potential

+140,000 Companies

+865,000 Power units

+900 M&A targets

Transportation industry

in Mexico contributes

5.9%

To annual GDP

12

Compelling Future Growth Drivers

Several variables are expected to fuel growth in the transportation industry

GDP Growth

▪ Mexico is the 15th largest economy in the world by GDP1

▪ It is expected that Mexico more than doubles its GDP by 20301

▪ The transportation sector has a strong correlation to GDP growth

1 Source: https://www.pwc.com/gx/en/world-2050/assets/pwc-the-world-in-2050-full-report-feb-2017.pdf;

https://data.worldbank.org/data-catalog/GDP-ranking-table

E-commerce

Infrastructure

Favorable demographics

▪ Virtually no logistics backbone to support e-commerce operations

▪ e-commerce is expected to consistently gain penetration

▪ Logistics and transportation must synchronize with e-commerce trends

▪ The best demographic bonus: increasing working-age population

▪ Emerging middle-class with increasing disposable income

▪ Healthy unemployment rates and underlevered population

▪ Mexican government has committed to invest in infrastructure

▪ Roads and highways to absorb the most infrastructure investments

▪ Mexico is a competitive investment destination

Positive macro

environment

▪ The largest manufacturing installed capacity in the region

▪ Structural reforms will be a paradigm shift in the mid-term

▪ Internal consumption is expected to continue to grow

13

Mexico is expected to

require more freight, logistics

and passenger services

Appendix

Nationwide Footprint

Total nationwide coverage and access with broad operations in the most dynamic economic regions of the country

Nuevo Leon

4.0%

Quintana

Roo

Baja

California

Sonora

3.9%

3.8%

Jalisco

San Luis Potosi

3.9%

Aguascalientes

5.4%

Guanajuato

5.0%

6.3%

Queretaro

5.4%

3.3%

Main Operations / Economic Regions

All Subsidiaries Presence No Presence

Average National GDP growth2.8%

Source: INEGI, Company information15

Long-Lasting Client Relationships

Blue-Chip client base

Customer Awards and Recognitions

65

2521 21 21 20 19 18

Average

26 years

16

• Truckload Provider of the

Year (‘05,’06, ‘07, ‘08)

• Logistics Provider of

Excellence (2012)

• Small International

Carrier of the Year in

Mexico (2013)

• Recognition of Effort and

Dedication for 38 years

of service (2013)

• Innovative Project (2013)

• Stellar Line (2014)

• Recognition for Contribution

to Operations (2015)

• Quality Week (2015)

• Fulfillment of Performance

and Service Indicators (2012)

• Best Supplier – Logistics and

Replenishment Category

• Recognition for Quality

Assurance and

Reliaility with Clients

• New Carrier of the Year

2016

• Distinguished

Provider 2003

Strategic Pillars

Operations Commercial M&A Finance

…through its well established strategy designed to maintain profitability

▪ Constant monitoring

▪ Continuous margin

improvement

▪ National footprint with

international capabilities

▪ Integral solutions

▪ High-quality, reliable

premium services

▪ Solid client relationships

▪ Brand differentiation

▪ Incremental share in

customers’ budgets

▪ Cross-selling

▪ Efficient capital

allocation

▪ Selective adquisitions

▪ Synergy and

implementation analisys

▪ Disciplined leverage

strategy

▪ Sound financial position

▪ Efficiencies and cost

controls

▪ Maximize returns

through capital

deployment

TRAXION has proven to grow successfully both organic and inorganically…

17

Best-In-Class Efficiency

Average Fleet

Age

Average Fleet

Utilization Rate

Logistics Facilities

Utilization Rate

5.8

years95% 96%

State-of-the-art systems

World-Class certifications

24/7 safety and monitoring

Continuous driver training

High-quality fleet maintenance

Commercial intelligence

+

Client Retention

Rate

95%

High efficiency in all metrics

18

Commercial Strategy

Highly differentiated comercial strategy fuels organic growth

19

Client relationships

▪ Highly-specialized client service team

▪ Focus on maintaining client base

▪ Capitalize our clients’ growth

Cross-selling

New clients

▪ Fully-dedicated corporate team focused on identifying opportunities

▪ Broad service offering

▪ Complementary service offering and business segments

▪ Highly-seasoned sales team

▪ Effective corporate strategy

▪ Servce offering contributes to attract potential clients

Integrated solutions for our clients’ needs Within our existing client base

Cargo LogisticsPassenger

M&A Criteria

TRAXION has a clear and thorough M&A selection criteria…

Additional

transportation-related

services

Increase our exposure

to current service

portfolio

Potential for synergies

and economies of scale

Opportunistic

transaction approach

Medium and large

companies

Well-run, succesful

and profitable

companies

Strong presence

and footprint in their

region or niche

Seasoned and

commited management

Focus on target companies with core abilities…

Key target selection criteria…

… that ensures that every transaction is accretive

Clearly identified opportunities

Dry vans, containers and flatbeds

Parcel and packaging

Logistics, warehousing and storage

LTL freight

Petrochemical and hydrocarbon

transportation

Refrigerated cargo

Personnel and student transportation

20

Intermodal

Unique Platform in the Market

Best practices in shared services

21

Procurement

Finance

IT Systems

Human

Resources

Commercial

Strategy

Corporate support

Work groups

Best practices sharing

Continuous improvement

Business knowledge sharing

Cost reduction

High-quality servicing

Efficient management

Integration of new companies

Constant growth

EBITDA

GROWTH

Increase synergies potential

Human Resources CommercialIT Procurement

▪ Designated IT Budget

▪ Plan of IT corporate

initiatives

▪ Most robust IT system in the

industry

▪ Integration culture

▪ Build management and

leadership development

programs

▪ Best processes and policies

of the industry

▪ Cost savings through scale:

fuel, tires, lubricants, and

other

▪ Cross selling

▪ Commercial strategy

Key Financial & Operating Data

2,223

5,211

1,026

1,746

9M16 9M17 3Q16 3Q17

445

971

219 341

9M16 9M17 3Q16 3Q17

1,554

5,268

1,560

5,319

9M16 9M17 3Q16 3Q17

97,192

281,130

45,137

92,360

9M16 9M17 3Q16 3Q17

Revenue (Ps. million) EBITDA (Ps. million)

Fleet (units) Kilometers Driven

19.5% 18.6% 21.4% 19.5%

EBITDA Margin

∆ 239%

▪ Kilometers driven in 3Q17 recorded an exogenous growth of 70.1%

due to the acquisition of LIPU, the Passenger business segment

▪ On a proforma basis, kilometers driven increased 7% mainly due to a

more efficient operation of the Passenger segment

PF

∆ 118%

22

∆ 56%

Key Financial & Operating Data per Segment

Cargo & Logistics Passenger

Financial Indicators 9M17 9M16 ∆%

Cargo & logistics revenue 2,990 2,223 34.5%

Total costs 2,218 1,589 39.6%

Operating expense 514 381 34.9%

Operating income 332 313 6.1%

EBITDA 563 474 18.8%

EBITDA margin 18.8% 21.3% -2.5 pp

Operating Indicators 9M17 9M16 ∆%

Kilometers driven (thousand) 130,378 97,192 34.1%

Avg. fleet size (units) 1,555 1,554 0.1%

Avg. fleet age (years) 5.2 5.2 -

Avg. revenues per kilometer (Ps.)1 19.37 19.32 0.3%

Avg. cost per kilometer (Ps.) 15.04 14.77 1.8%

Storage space (sqm) 302,844 304,265 -0.5%

Avg. revenue per sqm (Ps.) 134.84 134.61 0.2%

Cost per sqm 94.33 101.00 -6.6%

Financial Indicators 9M17

Passenger service revenue 2,221

Total costs 1,529

Operating expense 401

Operating income 314

EBITDA 424

EBITDA margin 19.1%

Operating Indicators 9M17

Kilometers driven (thousand) 150,752

Avg. fleet size (units) 3,713

Avg. fleet age (years) 6

Avg. revenues per kilometer (Ps.) 14.68

Avg. cost per kilometer (Ps.) 10.14

▪ The growth in the Cargo & Logistics segment is mainly due to

Price increases, and by the integration of the acquisitions of

Grupo SID and AFN

▪ Both Grupo SID and AFN strengthened our installed capscity

both in power units and warehousing space, allowing a broader

offering of value added services

▪ Since LIPU was integrated in 4Q16, there are no comparable

figures in this segment

23

Sound Balance Sheet

30-Sep-17

Current assets 6,803

Non-current assets 8,527

Total assets 15,330

Current liabilities 1,909

Long-term liabilities 3,780

Total liabilities 5,689

Shareholders' equity 9,641

Liabilities + Equity 15,330

Debt & Cash Analisys

16%

9%12%

63%

Up to 12 months 12-24 months 24-36 months >36 months

Debt Breakdown 3Q17 4Q16 ∆$ ∆%

Short-term debt 514 52 462 888.5%

Short-term capital leases 92 40 52 130.0%

Long-term debt 2,757 2,928 -171 -5.8%

Long-term capital leases 370 221 149 67.4%

Total debt 3,733 3,240 493 15.2%

Cash 526 468 58 12.4%

Net debt 3,207 2,772 435 15.7%

Post-IPO cash1 4,591 468 4,123 881.0%

Post-IPO net debt -858 2,772 -3,630 -131.0%

Financial Ratios 3Q17 4Q16

Total debt / EBITDA 2.53x 3.88x

Net debt / EBITDA 2.12x 3.27x

Post-IPO net debt / EBITDA -1.02x -

Total liabilities / Shareholders' equity 0.59x 1.12x

Debt Profile

Debt Maturity

24

Summary Balance Sheet

1 Does not consider (i) the exercise of the over-allotment option

(greenshoe), and (ii) the expenses related to the IPO