2019 Annual Report

01

Letter from the Chairman

2019 Annual Report

01

Dear Shareholders,

The end of 2019 was marked by record levels in global market indices. The good performance of these markets was mainly driven by an abrupt change in the monetary policy exercised by the United States Federal Reserve and other central banks, as well as by a marked reduction in trade tensions between the United States and China. In this high liquidity environment, the S&P 500 index closed the year at 3,230 units, posting a growth of 28.8%, largely outperforming the profits of the companies that comprise it.

Going forward, substantial improvement in actual economic performance is needed for valuations to be more than justified.

With regard to the local market, 2019 was an incredibly challenging year for equity markets. Their performance was the result of a pause in the dynamism of the growth of the real economy, which in turn was part of the process of understanding the change in government. However, at the end of the first year of this new administration, the compliance with fiscal discipline was remarkable, as well as the fight against corruption. At the same time, a significant slowdown in investment was observed and, as a result thereof, a contraction in economic growth.

The Mexican Stock Exchange closed the year at 43,541 units, implying an increase of 4.6% that significantly underperformed the global market indices, specifically those in the United States. Such performance was also influenced by the level of risk-free interest rates, marked by Mexico's sovereign debt.

3,230

UNITS

S&P 500 INDEX

43,541

UNITS

MEXICAN STOCK EXCHANGE

PESO

DOLLAR

PARITY SHOWED
SLIGHT APPRECIATION

The peso/dollar parity showed, for the same reasons, a slight appreciation throughout the year, with Mexico being one of the countries with the highest real interest rates around the world. On the other hand, the ratification of the trade agreement between Mexico, the United States and Canada at the end of 2019 had a positive impact on the exchange rate.

As for debt markets, the interest rate of 10-year bonds issued in local currency ended the year at a level of 6.90%, well below the 8.68% reached in 2018. It should be recalled that Mexico’s Central Bank (Banxico) lowered the key interest rate by 100 basis points throughout the year, following the monetary policies adopted by other central banks around the world. This was possible given the behavior of Mexico’s inflation.

The complex local environment was reflected in our 2019 results. The valuation of our equity assets was particularly affected by, among other things, the high level of uncertainty that was observed throughout the year. However, it should be noted that the operating line maintained a stable performance accompanied by a good performance of our private equity products.

Regarding the transactional division, the volume traded in the Mexican market reported a 16.9% decrease when compared to the volume traded in the previous year. However, GBM kept a better dynamism, showing a 9.6% decline, performing significantly better than the market. Furthermore, we remained as the leader in terms of average daily volume traded in the Mexican Stock Exchange, attaining a share of 11.3% this year.

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01

The wide acceptance of the performance commission charged by one of our private equity vehicles, which is in turn backed by an investment portfolio comprised of various of the companies within our coverage, enabled the company to reach a total of $1.9 billion pesos in commissions earned, which represents a 15.5% year-over- year (YOY) increase. Of the total commissions earned in 2019, those coming from Corporate Finance and the so-called "transactional" ones reached $601 million pesos, while management and administration commissions of our family of investment funds totaled $727 million pesos.

The assets under the management of GBM Administradora de Activos showed a 12% YOY decrease, which contrasted with the 7% growth observed in the industry. Nevertheless, GBM remains the ninth largest investment fund operator in Mexico, with a market share of 3.35%.

Regarding the company's equity management, during 2019 we yielded a negative return of 1.4%, which contrasts negatively with the positive performance of 4.5% posted by the Mexican Stock Exchange.

Our private equity investment vehicles showed a stable performance during the year, although it should be acknowledged that the pace at which new investments could have been made has slowed considerably. The CKD GBMICK12 is fully invested in eight infrastructure projects within the water, road, and energy sectors. Furthermore, it continues its divestment process, having already completed the first sale of one of its assets.

The CKD GBMESK16 is still in an investment period; thus, efforts are focused on the analysis of opportunities, mainly in the energy sector. In late 2018 and early 2019, a couple of electric power generation projects were completed in the states of Nuevo León and Tamaulipas. It is expected that in the first half of 2020 they will already be in stabilized operation.

$601 MDP

FROM CORPORATE FINANCE AND TRANSACTIONAL

$727 MDP

MANAGEMENT AND ADMINISTRATION COMMISSIONS OF INVESTMENT FUNDS

DOUBLING

ITS CUSTOMER BASE

GBMHOMEBROKER

$8.15 BILLION

STOCKHOLDERS' EQUITY

GBM Digital, in turn, continues to position itself as a leader in the Mexican market, driving our vision to make Mexico a country of investors. During the year, GBMhomebroker delivered consistent growth, doubling its customer base, and continuing to expand assets in custody.

GBM's overall results for the year 2019 showed a 5% drop versus the closing of 2018. With these figures, the company's stockholders' equity stands at $8.15 billion pesos.

Lastly, Corporativo GBM upholds its commitment to the social areas of our country, providing nearly $2 million pesos in aids during 2019.

In our opinion, the outlook for Mexico in 2020 will be characterized by ongoing healthy public finances, fiscal discipline, and a significant improvement in the dialogue between the private sector and the government. The implementation of the National Infrastructure Plan as well as the ratification of the trade agreement with the United States and Canada will be of great importance to boost economic growth. It will also be necessary to stabilize and even increase oil production and stimulate private investment to contribute to growth.

We thank our shareholders, clients, employees, and suppliers for the trust and support they have given us during 2019 and we reiterate our firm purpose and commitment to continue to be their worthy representatives in the Mexican financial sector.

Diego J. Ramos González de Castilla

Chairman and Chief Executive Officer

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02

GBM’s
Profile

2019 Annual Report

02

GBM’s Profile

Corporativo GBM is a pure holding company of shares, of the investment portfolio it maintains, and of its subsidiaries. The business group is engaged in providing services and products related to investment in securities. The company is listed on the Mexican Stock Exchange since 1992, currently under ticker symbol “GBM O”.

GBM is made up mainly of non-banking financial entities that provide brokerage services in the stock market, as well as structures aimed at offering investment products to investors with a wide range of sophistication degrees.

Regardless of the investment in its subsidiaries, the company has an investment portfolio made up of different asset classes, but mostly of investment funds and other collective investment vehicles that GBM has allocated to the public.

The investment portfolio of Corporativo GBM, excluding its subsidiaries, is valued at $8.9 billion pesos and is comprised as follows: 8% corresponds to private equity instruments (including the joint venture with our CKDs), 1% to debt market instruments, and 91% to equity instruments, of which 66% are investments in vehicles managed by the Holding’s entities, with a risk exposure equivalent to an average annual value-at- risk (VaR) of $291 million pesos, at a 99% confidence level.

$8.9 BILLION

INVESTMENT PORTFOLIO OF CORPORATIVO GBM

$488.9 BILLION PESOS

ASSETS IN CUSTODY

$134.6 BILLION PESOS

MANAGED ASSETS

$8.1 BILLION PESOS

STOCKHOLDERS' EQUITY

($184) MILLION PESOS

NET INCOME (LOSS)

1.5 BILLION

SHARES ISSUED

$13.8 BILLION PESOS

MARKET CAPITALIZATION

$3.2 BILLION PESOS

TOTAL ISSUED IN STOCK CERTIFICATES BY CORPORATIVO GBM

Corporativo GBM holds $3.2 billion pesos in issuances of stock certificates, with maturities staggered until 2023 and ‘AA (Mex)’ and ‘HR AA+’ ratings assigned by Fitch Ratings Mexico and HR Ratings, respectively.

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GBM
Research

2019 Annual Report

“FUTURE IS NEVER CLEAR, BUT, AS WE KNOW, UNCERTAINTY IS A FRIEND TO THE LONG-TERM VALUE INVESTOR”

GBM Research

At GBM, we have the most robust Research team in Mexico, comprised of more than 20 analysts who achieve the greatest coverage of companies in the market. Such coverage, together with our important networking in the country, allows us to generate research and papers that facilitate the interpretation of the markets and support our investors' decision-making, especially in highly volatile and uncertain environments, such as those we are experiencing today.

Future is never clear, but, as we know, uncertainty is a friend to the long-term value investor. Therefore, we believe the recent decline in Mexican stock markets has opened an unusual opportunity to participate in high-quality assets with a solid safety margin.

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GBM
Equities

2019 Annual Report

04

GBM Equities

Thanks to the confidence of our clients, we managed to increase our market share to 13.1% during 2019, which allowed us to remain for the sixth consecutive year as the Brokerage House that traded the largest volume of shares in the Mexican market.

Despite the challenges that arose during the year, GBM's Equities division consolidated its leadership, managing to expand the local and foreign client base and entering new markets and geographies. An essential part of the goals achieved is the commitment of the entire Sales and Trading teams to provide our clients with the best service and execution, hand in hand with GBM's commitment to offer the best fundamental analysis in Mexico. This combination has been crucial to achieve growth and strengthen this business division.

At GBM Equities, we promote investment in Mexican equities through the informed conveyance of ideas. In times of adversity and volatility like the ones we are facing, we will seek to adapt and be closer to our clients in order to support them in their investment processes and decision making. We are convinced that, regardless of market conditions, there will always be opportunities that our clients can capitalize.

13.1%

MARKET SHARE

SIXTH

CONSECUTIVE YEAR

THE LARGEST VOLUME OF SHARES IN THE MEXICAN MARKET

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GBM Asset
Management

2019 Annual Report

05

GBM Asset Management

GBM Asset Management closed the year with $96.4 billion pesos in assets under management in funds and mandates. GBM has a 3.35% market share in investment funds in Mexico, making us the ninth largest fund manager in the Mexican market.

During 2019, GBM Asset Management consolidated several business areas into one division, including the Fixed Income and Equity investment teams, Institutional Investments, International Distribution, Fund Distributors, Referral Partners, Trust and Foreign Management Representation. The purpose of the consolidation was offering a better customer service, improving investment products and optimizing work teams.

$96.4 BILLION

IN ASSETS UNDER MANAGEMENT IN FUNDS AND MANDATES

3.35%

MARKET SHARE

IN INVESTMENT FUNDS IN MEXICO

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GBM
Infrastructure

2019 Annual Report

06

GBM Infrastructure

In 2012, GBM capitalized its experience in successful private equity investments by creating its first equity fund focused on infrastructure and energy investments, under the capital call scheme, with ticker symbol GBMICK12. The fund's strategy during 2019 was to (i) generate value in the fund's existing investments and (ii) seek to complete the divestment of some of the fund's investments to maximize returns for its investors

Regarding the joint venture established since the end of 2013 between CKD and its Co-investor, through its subsidiary GBM Hidráulica S.A. de C.V., GBM holds a 49.9% interest in Desarrollos Hidráulicos de Cancún, S.A. de C.V. ("DHC"), a company that holds the deed of concession until 2053 for the provision of drinking water, sewerage and sanitation services in the municipalities of Benito Juárez, Puerto Morelos, Isla Mujeres and Solidaridad, persisting in the effort to keep exploiting the potential of such investment. In 2019, DHC distributed to the holders of the CKD GBMICK12 a cumulative amount of $668.32 million pesos.

We continue with the commercial operation of Phases 1 and 2 of the Tres Mesas wind farm, located in the state of Tamaulipas. The Tres Mesas wind farm represents one of the largest renewable energy projects in operation in Mexico, with a capacity of 148.5 MW and the installation of 45 wind turbines. The energy generated is acquired by Sigma Alimentos, S.A. de C.V., and other subsidiaries of Alfa, S.A.B. de C.V., as well as by subsidiaries of Wal-Mart de México, S.A.B. de C.V., under long-term power purchase agreements. In 2019, the Tres Mesas wind farm distributed to the holders of the CKD GBMICK12 a cumulative amount of $118.54 million pesos.

DESARROLLOS HIDRÁULICOS DE CANCÚN

COMPREHENSIVE WATER CONCESSION IN CANCUN AND THE RIVIERA MAYA UNTIL 2053

TRES MESAS WIND FARM

ONE OF THE LARGEST RENEWABLE ENERGY PROJECTS IN MEXICO

SIGLO XXI HIGHWAY

61.8 KM HIGHWAY THAT CONNECTS PUEBLA WITH MORELOS TO THE AUTOPISTA DEL SOL

CHACABAL I AND CHACABAL II WIND FARMS

FIRST DIVESTMENT OF THE PORTFOLIO, WHICH REPRESENTED A RETURN ABOVE THE FUND'S TARGET; THUS, DOUBLING ITS INVESTMENT VALUE

PONIENTE-PUEBLA BYPASS ROAD

18.4 KM LONG BYPASS ROAD THAT CONSTITUTES AN ALTERNATIVE ENTRANCE TO PUEBLA CITY

We continue with the commercial operation of the Siglo XXI highway project, which started operations on November 16, 2018. The Siglo XXI project is a federal 30-year concession to build, operate, exploit, and preserve the highway that connects the state of Puebla with the eastern zone of Morelos to the Autopista del Sol, closing the Gulf-Pacific highway axis.

With regard to the two electricity supply agreements with the Federal Electricity Commission (Comisión Federal de Electricidad) relative to the Chacabal I and Chacabal II wind farms, which were awarded to the GBM Infrastructura I Trust (together with the Co-investor) through one of its subsidiaries, the GBM Infrastructura I Trust (and the Co-investor) transferred their interest in such wind farms to the operating partner, thereby terminating and canceling their participation in such projects. This assignment was perfected by paying the consideration. To date, the CKD (together with the Co-investor) remains as creditor of Eólico Maya I and Eólico Maya II and the credits will be used exclusively for the development of the wind farm.

We continue with the commercial operation of the Vía San Martín Texmelucan- Huejotzingo highway project, which began operations in August 2018. The Vía San Martín Texmelucan-Huejotzingo project is a 30-year state concession to build, operate, exploit, and preserve the section that connects the Arco Norte and the Mexico-Puebla highway with Huejotzingo, being an alternative entrance to Puebla City via Cholula. In 2019, the concessionaire of the Vía San Martín Texmelucan- Huejotzingo project distributed to the holders of CKD GBMICK12 an accumulated amount of $28.25 million pesos.

On February 7, 2018, GBM Hidráulica's interest in the capital stock of Tecnología y Servicios de Agua, S.A. de C.V. and Aguas, Servicios e Inversiones de México, S. de R.L. de C.V. was divested. These companies hold, directly and indirectly, the concessions for the infrastructure and commercial administration of the water system in the boroughs of Iztapalapa, Tláhuac, Xochimilco, Milpa Alta, Venustiano Carranza, Iztacalco, Benito Juárez and Coyoacán, in Mexico City. For GBM Hidráulica,

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the transaction represented a return higher than the fund's objective, being able to double the value of its investment.

In 2019, CKD GBMICK12, together with its Co-investor, remained as a subordinated creditor of the company Autopista Naucalpan-Ecatepec, S.A.P.I. de C.V., a subsidiary of ICA, which has a service contract related to public works and public works financed by the government of the State of Mexico. The Naucalpan-Ecatepec Highway is a high specification road, located north of the Valley of Mexico, which connects the east and west of the metropolitan area of Mexico City and the State of Mexico. The highway intercommunicates the Mexico-Pachuca and Circuito Exterior Mexiquense highways, as well as important avenues such as Avenida Gustavo Baz, Calzada Vallejo, Eje Central Lázaro Cárdenas and Avenida Central.

During 2019, the temporary suspension of the investment that the GBM Infrastructure fund, through its subsidiary GBM Infraestructura Carretera S.A. de C.V., had been making since mid-2016 in Concesionaria Viaducto Indios Verdes S.A. de C.V. ("COVIVE"), was maintained. Said subsidiary is a company that was awarded the project and design of the "Viaducto La Raza-Indios Verdes-Santa Clara" (through the Public- Private Partnerships Law , Ley de Asociaciones Público-Privadas, “PPP"), as well as the 30-year concession for the construction, operation, exploitation, preservation and maintenance at the limits between the State of Mexico and Mexico City. With a view to carrying out the project, COVIVE, as the current concessionaire, has reconsidered its approach to the project's environmental and mobility impact by preparing a new environmental impact statement (EIS, for its acronym in English or MIA, for its acronym in Spanish) that will be filed with the Environment and Natural Resources Ministry (Secretaría de Medio Ambiente y Recursos Naturales; SEMARNAT for its acronym in Spanish).

NAUCALPAN-ECATEPEC HIGHWAY

SUBORDINATED LOAN TO ONE OF THE FASTEST GROWING URBAN ROADS

VIADUCTO-INDIOS VERDES CONCESSIONAIRE

8.53 KM ELEVATED VIADUCT THAT WILL FREE THE EXIT FROM MEXICO CITY TO PACHUCA

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GBM
Strategy

2019 Annual Report

GBMESCK16

THE PLACEMENT $9 BILLION PESOS + $1.4 BILLION PESOS OF CO-INVESTMENT

GBM Strategy

Due to the successful performance of the first fund, GBM issued a second equity fund to invest in infrastructure, energy, and other sectors, under the capital call scheme, with ticker symbol GBMESCK16. The placement took place on September 30, 2016 for $9 billion pesos plus $1.4 billion pesos of co-investment.

At the end of 2019, CKD GBMESCK16, together with its Co-investor, maintains its indirect interest of 88.89% in Capital Energético Mexicano, S.A.P.I. de C.V. ("CEM"), a company engaged in the development, construction and operation of energy generation projects, together with Invenergy and CS Capital, companies specialized in the development and operation of power plants. CEM has an interest in the following companies: (i) Cogeneración Cactus, S.A.P.I. de C.V., a company developing a cogeneration plant, with a 32.32% stake; (ii) Cogeneración Uno, S.A. de C.V., a company developing a cogeneration plant, with a 20% stake; (iii) Compañía de Electricidad Los Ramones, S.A.P.I. de C.V., with a 42.22% stake; (iv) Trigen Altamira I, S. de R.L. de C.V., with a 50% stake; and (v) Tajín Energía, S. de R.L. de C.V., with a 50% stake.

Compañía de Electricidad Los Ramones, a company in charge of the development, construction, operation, and maintenance of a natural-gas-fueled open-cycle plant. The plant is located in Nuevo Leon and has a capacity of up to 689 MW. Compañía de Electricidad Los Ramones, S.A.P.I. de C.V. was awarded a 15-year electric power supply agreement for the purchase and sale of 550 MW through the SLP-1/2017 Long-Term Auction.

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CKD GBMESK16, together with its Co-investor through a partnership promoted with CEM, has an interest in Trigen Altamira I, S. de R.L. de C.V., a company in charge of the development, construction, operation and maintenance of a trigeneration plant in the state of Tamaulipas, which will have a capacity to generate 18.3 MW, 110 tons/ hour of steam and 1,084 tons/hour of refrigeration. Trigen Altamira entered into an agreement with a petrochemical complex for the supply of electric power, steam, and chilled water, which will have a 15-year term with an option to renew for an additional 5-year period.

During 2019, the temporary suspension of the investment that the GBM Infrastructure fund, through its subsidiary GBM Infraestructura Carretera S.A. de C.V., had been making since mid-2016 in Concesionaria Viaducto Indios Verdes S.A. de C.V. ("COVIVE"), was maintained. Said subsidiary is a company that was awarded the project and design of the "Viaducto La Raza-Indios Verdes-Santa Clara" (through the Public- Private Partnerships Law), as well as the 30-year concession for the construction, operation, exploitation, preservation and maintenance at the limits between the State of Mexico and Mexico City. With a view to carrying out the project, COVIVE, as the current concessionaire, has reconsidered its approach to the project's environmental and mobility impact by preparing a new environmental impact statement that will be filed with the SEMARNAT.

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Corporate Finance and Investment Banking

2019 Annual Report

With over 30 years of experience in the Investment Banking and Corporate Finance area, we offer differentiated advice and value-added services in various lines of business, such as capital markets, debt markets and corporate restructuring, as well as in the field of mergers and acquisitions.

08

Corporate Finance and
Investment Banking

Throughout 2019, the Brokerage House, in its capacity as a leading placement agent, carried out the following outstanding transactions:

Structuring and issuance of IPORCB19 Long-Term Debt Trust Certificates, with amortization according to a target schedule and cash sweep. The transaction was for $4.2 billion pesos with a legal term of 53 years, an expected term of 12.2 years and a coupon rate of 9.95%, equivalent to a spread of 195 basis points over Mbono 29 upon issuance.

Structuring and issuance of IPORCB19U Long-Term Debt Trust Certificates, with amortization according to a target schedule and cash sweep. The transaction was for $1.8 billion pesos with a legal term of 53 years, an expected term of 8.8 years and a coupon rate of 5.47% in real terms, equivalent to a spread of 165 basis points over Udibono 25 upon issuance.

IPORCB19
IPORCB19U

OUTSTANDING
TRANSACTIONS

09

GBM
Digital

2019 Annual Report

During 2019, GBM Digital continued to position itself in the Mexican market with the vision of giving everybody access to investments in the country. It was a year of great expansion, in which we laid the foundations for even faster growth.

GREW MORE

THAN 25%

ASSETS UNDER CUSTODY

OVER 500 THOUSAND PEOPLE

OUR SUBSCRIBER BASE

GBM Digital

At the same time, we worked internally to boost our scope, with a focus on continuing to improve our technology. Our strategy remains the optimization of the design around the user with the purpose of boosting the financial potential of all Mexicans.

GBMhomebroker's client base grew exponentially, managing to double the number of investors in 2019, while assets under custody grew more than 25%. Furthermore, towards the middle of the year, we launched the new mobile apps, which were very well accepted, given we managed to have more than 300 thousand monthly sessions with a higher operational capacity. Thanks to these initiatives, we managed to reactivate existing clients and, thus, to triple the number of users who trade every month through the platform. As a result of all these initiatives, our market share grew to account for 40% of the amount traded in the Mexican equity market.

Our presence in social networks and digital media also continued to expand, demonstrating our leadership, and building brand value through our content and interactions with the investment community. We had more than 5 million visits to our platforms and more than 2 million interactions in social networks. Our subscriber base includes over 500 thousand people.

Moving forward, we are consolidating our digital efforts in order to leverage our user base, with the purpose of generating more impact. Our goal is to integrate a hybrid solution between technology, personalized financial advice, and a high-quality differentiated service to democratize investments in the country and boost the financial potential of Mexicans.

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10

GBM
Ventures

2019 Annual Report

“THIS WAS A YEAR THAT PROVED THE MERITS OF PURSUING A DIVERSIFICATION STRATEGY THROUGH PRIVATE EQUITY INVESTMENTS.”

GBM Ventures

Our investments in what we consider the best private equity funds in the world showed a favorable performance. Our portfolio obtained a double-digit annual return in a year in which the key interest rate in Mexico fell from 8.25% to 7.25% and the Mexican stock market showed an annual return of 4.5%. It is worth mentioning that the return on our portfolio derived from both the appreciation in the value of our assets and liquidity events, partly offset by the appreciation of the Mexican peso. We still believe that, in the long run, this strategy will continue to enable us to diversify and cope better with any internal shocks that our economy and/or our currency may face.

In our strategy of investing in medium-sized companies, we are still in the investment phase. We participate through follow-ons in a company in the restaurant sector that has shown a high performance in a sector that has benefited greatly from the growth of the middle class. Furthermore, we closed two additional investments during the year: one in the international restaurant sector and the other one in the consumer sector. It should also be mentioned that during the year we completed the divestment of a company in the media sector, achieving a compound annual return for our investors of over 27%. Our investment thesis is based on our belief in the high potential of Mexican SMEs and in the capacity of GBM Ventures to be an active participant in helping such companies to institutionalize themselves and grow.

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In the strategy of investments in startups, during 2019 we launched the company builder of GBM Ventures. Through this initiative we seek to develop business models that can achieve profitability in a very short term (without necessarily depending on constant capital injections) and, at the same time, present the possibility of scaling up through additional investment. On the other hand, we maintain a high risk/growth equity portfolio denominated Venture Capital consisting of 19 startups, supporting them to grow and seeking to increase our interest in those that show favorable results in their first years of operation.

At GBM, we believe in the entrepreneurial capacity of Mexicans and in the potential of Mexican SMEs to grow profitably, generate jobs, pay their taxes, and generate economic and social impact that will contribute to the country's development.

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Social
Responsibility

2019 Annual Report

30 YEARS

COMMITTED TO THE SOCIETY

FUNDACIÓN GBM

SERVICES PROVIDED OF A NON-PROFIT NATURE

Social Responsibility

Since 1990, GBM has been involved and committed to the society through the non-profit entity Fundación GBM, I.A.P, which is a donee authorized by the tax authorities. We focus our attention on minors, the elderly and sick population and all kinds of helpless people with limited economic resources. The Foundation seeks to channel resources to entities and associations that are authorized to receive deductible donations and are engaged in serving those sectors of the population. We provide the necessary support for their respective welfare programs, in order to expand the benefits of their activity.

The services provided by Fundación GBM are of a non-profit nature. For the operation and performance of its welfare activity, we observe the regulations of the Federal District Private Charities Act (Ley de Instituciones de Asistencia Privada del Distrito Federal) and the Federal District Board of Private Charities (Junta de Asistencia Privada del Distrito Federal), as well as the applicable tax and legal regulations in force. Donations are given in the form of financial aids (by wire transfer or in kind) and are classified in the following programs:

1. Financial Aid Program for Schoolchildren

This program represents an opportunity for children and young people to receive support for school and tuition fees during their elementary, middle, high school or equivalent education. Receiving a proper education allows them to face professional and labor challenges in a productive way for the society’s good and the progress of the country.

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2. Medical Aid Program

Through this program, we support the families of low-income patients who have exceeded their economic capacity to pay for medical, hospital, surgical, therapeutic, and similar expenses arising from a health problem.

3. Parenting School and Family Orientation Program

Through the work carried out by Fundación GBM in the Financial Aid Program for Schoolchildren, we detected the need to do more work to support families, given that on many occasions family problems that are handled inadequately affect the educational development of children, leading to a decrease in school performance. For this reason, Fundación GBM implemented a Family Orientation and Parenting School Program with the purpose of strengthening the family dynamics and, therefore, the good school performance of the scholarship holders, since courses are given for children and adolescents who benefit from the Financial Aid Program for Schoolchildren, as well as for their parents or guardians.

4. Granting of Institutional Donations

This consists of economic aids approved by the Board of Trustees to be provided to entities authorized by Mexico’s Ministry of Finance (Secretaría de Hacienda y Crédito Público) to receive tax-deductible donations (entities) and focused on the target population of Fundación GBM. These grants may be covered through two programs: a) Donation for Welfare Programs and b) Donation for Social or Cultural Programs. The Donation for the Welfare Program is the amount contributed to finance programs and/or work projects that favor community development actions. On the other hand, the Social or Cultural Programs Donation is the contribution by wire transfer or in kind to participate in events (concerts, exhibitions, conferences, premieres, contests, competitions, etc.) that have been organized by the entities, in order to raise funds for the welfare works they serve.

5. Support in Natural Disasters

Aids in cash or in kind granted in the event of natural disasters, which are channeled through entities focused on such work. For example, through the Mexican Red Cross, we have sent trailers of water and canned food to disaster areas. Likewise, through the non-profitable entity Fomento Social Banamex, we have supported the reconstruction of homes in affected areas.

6. GBM por una Sonrisa

This program is an especially important part of this entity. It is a project that was born in 1999 with the aim of building a social aid fund with voluntary contributions from employees, and which is hosted by Fundación GBM in order to guarantee the deductibility of the donations it receives. GBM and the companies that comprise it double employee donations every month, which together adds up to a great work. This project helps children between 0 and 15 years old, with unmet economic needs, who require medical attention. GBM por una Sonrisa focuses on providing cochlear implants, as well as financial support to foundations and entities authorized to receive deductible donations, which provide care for children between the ages of 0 and 15 (in the educational, medical, rescue and shelter fields) and seek to improve their quality of life.

From January to December 2019, Fundación GBM, I.A.P. granted the following aids:

Program Individuals benefitted by the programs Authorized donees benefitted by the programs Aid amount
Financial Aid for Schoolchildren 30 $361,420.97
Institutional Donations 1 $25,000.00
GBM por una Sonrisa 1 10 $1,641,084.75
31 11 $2,027,505.72
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Directors and
Officers

2019 Annual Report

Carlos Lerma Vargas

Head of Equity Sales

Diego Ramos González de Castilla

Chairman of the Board and Chief Executive Officer

Enrique López Angulo

Chief Security Officer

Enrique Rojas Blásquez

Deputy Chief Executive Officer

Fernando Castro Tapia

Head of Fixed Income Funds

Fernando Ramos Amtmann

Managing Director of GBM Ventures

Fernando Ramos González de Castilla

Co-founder of GBM

Gerardo Madrazo Gómez

Head of Money Markets

Jaime Enriquez Martínez de Velasco

Head of Risk Management

Javier Martínez Morodo

Head of Strategy & Growth

Jose Antonio Salazar Guevara

Deputy Chief Executive Officer

José Luis Arteaga Mena

Head of Money Market

José Luis Manzano Robleda

Head of Infrastructure Funds

Juan Manuel Duclaud Cuervo

Head of Institutional Sales

Luciano Hosken Araujo

Chief Technology Officer

Luis de Garay Russ

Head of Investment Banking and Corporate Finance

Luis de la Cuesta Girón

Deputy Head of Asset Management

Mauricio Alfonso Santos Mayorga

Head of Equity Funds

Miguel Mayorga Tena

Head of Research

Natalia Saldate Durón

Head of Legal and Internal Control

Pablo Limón Campillo

Head of International Sales

Patricio de la Vega Flores

Head of Administration

Raymundo Leal Vargas

Head of Asset Management

Ricardo Arteaga Botello

Head of Treasury

Sebastián Rey Ortega

Head of Equities

13

Corporate Governance

2019 Annual Report

Corporativo GBM, S.A.B. de C.V.

Diego Ramos González de Castilla

Chairman

Jonatan Graham Canedo

Secretary

Natalia Saldate Durón

Assistant Secretary

Members of the Board of Directors

Regular Directors

Jorge Rojas Mota Velasco

Alonso de Garay Gutiérrez

Diego Ramos González de Castilla

Miguel Ortiz Aquilar

(Independent Director)

Javier Sunderland Guerrero

(Independent Director)

Alternate Directors

Enrique Rojas Blásquez

Fernando Ramos González de Castilla

José Antonio Salazar Guevara

Ignacio Sosa López

(Independent Director)

14

Investment Committee of GBM Infrastructure

2019 Annual Report

GBM Members

Fernando Ramos González De Castilla

Co-founder of GBM

Diego Ramos González De Castilla

Chairman and Chief Executive Officer

Enrique Rojas Blásquez

GBM Deputy Chief Executive Officer

Independent Members

Jesús Federico Reyes-Heroles González Garza

Chief Executive / StructurA

Pablo de la Peza Berríos

Independent Consultant

César Herrera Toledo

Advisor /Empresa de Estudios Económicos y de Ingeniería

Eduardo Pérez Motta

Partner / SAI Derecho y Economía

Secretary

Jonatan Graham Canedo

Managing Director / Graham Abogados

15

Technical Committee of the
GBM Infrastructure Trust

2019 Annual Report

GBM Members

Fernando Ramos González De Castilla

Co-founder of GBM

Diego Ramos González De Castilla

Chairman and Chief Executive Officer

Enrique Rojas Blásquez

GBM Deputy Chief Executive Officer

Independent Members

Eduardo Pérez Motta

Partner / SAI Derecho y Economía

César Herrera Toledo

Advisor /Empresa de Estudios Económicos y de Ingeniería

Jesús Federico Reyes-Heroles González Garza

Chief Executive / StructurA

Pablo de la Peza Berríos

Independent Consultant

Pension Fund Managers (Afores)

Citibanamex | SURA | Principal

Secretary and Member

Jonatan Graham Canedo

Managing Director / Graham Abogados

16

Technical Committee of the
GBM Strategy Trust

2019 Annual Report

GBM Members

Fernando Ramos González De Castilla

Co-founder of GBM

Diego Ramos González De Castilla

GBM Chief Executive Officer

Enrique Rojas Blásquez

GBM Deputy Chief Executive Officer

Independent Members

Eduardo Pérez Motta

Partner / SAI Derecho y Economía

Cesar Herrera Toledo

Advisor /Empresa de Estudios Económicos y de Ingeniería

Jesús Federico Reyes-Heroles González Garza

Chief Executive / StructurA

Pablo de la Peza Berríos

Independent Consultant

Esteban Figueroa Palacios

Head of Infrastructure and Investment Analysis / AFH Consultores y Asociados

Pension Fund Managers (Afores)

Citibanamex

Invercap

Principal

PensionISSSTE

Secretary and Member

Jonatan Graham Canedo

Managing Director / Graham Abogados

17

Consolidated Financial Statements

2019 Annual Report

Balances generales consolidados

Al 31 de diciembre de 2019 y 2018

(Cifras en millones de pesos)

Cuentas de orden 2019 2018
Operaciones por cuenta de terceros:
Clientes cuentas corrientes-
Bancos de clientes $284 $370
Intereses cobrados de clientes 9 2
Liquidación de operaciones de clientes (357) (512)
Liquidación con divisas de clientes 8 (38)
Premios cobrados de clientes 2 2
(54) (176)
Operaciones en custodia-
Valores de clientes recibidos en custodia 488,843 475,932
Operaciones de administración-
Bienes en administración 81,632 92,320
Operaciones de reporto por cuenta de clientes 22,581 21,886
Operaciones de préstamo de valores por cuenta de clientes 3,059 3,343
Colaterales recibidos en garantía por cuenta de clientes 18,282 17,727
Colaterales entregados en garantía por cuenta de clientes 9,086 8,908
134,640 144,184
Operaciones de compra y venta de derivados:
De futuros y contratos adelantados de clientes 1,200 1,797
De opciones - 3
1,200 1,800
Fideicomisos administrados 46,543 46,603
Totales por cuenta de terceros $671,172 $668,343
2019 2018
Operaciones por cuenta propia:
Colaterales recibidos por la entidad-
Deuda gubernamental $9,065 $9,410
Instrumentos de patrimonio - 1,748
Otros títulos de deuda 2,151 -
11,216 11,158
Colaterales recibidos y vendidos o
entregados en garantía por la entidad
Deuda gubernamental 9,065 9,410
Otros títulos de deuda - 1,748
Instrumentos de patrimonio 2,103 -
11,168 11,158
Otras cuentas de registro 9,997 11,311
Totales por cuenta propia $32,381 $33,627

Balances generales consolidados

Al 31 de diciembre de 2019 y 2018

(Cifras en millones de pesos)

Activo 2019 2018
Disponibilidades $336 $370
Cuentas de margen (derivados) 90 68
Inversiones en valores:
Títulos para negociar 17,799 16,712
Deudores por reporto (saldo deudor) - 19
Préstamo de valores 2 2
Derivados
Con fines de negociación - 116
Cartera de crédito, neto 79 352
Cuentas por cobrar, neto 1,329 1,150
Inmuebles, mobiliario y equipo, neto 126 162
Otras inversiones permanentes 2,324 1,717
Otros activos
Cargos diferidos, pagos anticipados e intangibles 132 208
Otros activos a corto y largo plazo 564 220
696 220
Total activo $22,781 $20,888


El saldo histórico del capital social al 31 de diciembre de 2019 y 2018 es de $1,788 y $1,842, respectivamente.

Balances generales consolidados

Al 31 de diciembre de 2019 y 2018

(Cifras en millones de pesos)

Pasivo 2019 2018
Pasivos bursátiles $3,209 $3,211
Préstamos bancarios y de otros organismos
De corto plazo 1,026 -
Acreedores por reporto 4,860 4,214
Préstamos de valores 2 1
Colaterales vendidos o dados en garantía
Préstamo de valores 3,784 3,163
Derivados
Con fines de negociación 26 -
Otras cuentas por pagar:
Participación de los trabajadores en las utilidades por pagar 1 -
Acreedores por liquidación de operaciones 606 432
Acreedores por colaterales recibidos en efectivo 7 27
Acreedores diversos y otras cuentas por pagar 513 551
1,127 1,010
Impuesto diferido, neto 589 706
Total pasivo $14,623 $12,305
Capital contable
Capital contribuido-
Capital social 1,788 1,842
Prima en venta de acciones 34 34
Capital ganado-
Reservas de capital 444 444
Resultado de ejercicios anteriores 6,287 6,570
Efecto acumulado por conversión (125) (127)
Resultado neto (184) (88)
Remediación de obligaciones laborales al retiro (86) (92)
Total capital contable 8,158 8,583
Total pasivo y capital contable $22,781 $20,888

Estados consolidados de resultados

Por los años que terminaron el 31 de diciembre de 2019 y 2018

(Cifras en millones de pesos)

2019 2018
Comisiones y tarifas cobradas $1,905 $1,540
Comisiones y tarifas pagadas (350) (407)
Ingresos por asesoría financiera - 73
Resultado por servicios 1,555 1,206
Utilidad por compraventa 714 803
Pérdida por compraventa (438) (459)
Ingresos por intereses 1,329 1,441
Gastos por intereses (1,582) (1,649)
Resultado por valuación a valor razonable (514) (715)
Margen financiero por intermediación (491) (579)
Otros ingresos de la operación, neto 63 279
Gastos de administración y promoción (1,399) (1,439)
Resultado de la operación (272) (533)
Participación en el resultado de subsidiarias no consolidadas, asociadas 15 276
Resultado antes de impuestos a la utilidad (257) (257)
Impuestos a la utilidad causados (65) (67)
Impuestos a la utilidad diferidos (neto) 138 236
73 169
Resultado neto ($184) ($88)
GBM