PEMEX’s Business Plan 2017-2021

1 PEMEX s Business plan 2017-2021 Motivation The Business plan hereby presented is somewhat unique for various reasons: On one hand, profitability is its guiding principle. On the other, PEMEX is a Productive State Enterprise (NOC) (regulated prices, supply guarantee, the State s largest tax contributor, its deficit consolidates with the public sector, monopoly with asymmetric regulation, special fiscal regime, limited labor flexibility, among others). This plan is already being implemented, significant and tangible progress has been achieved. The Business plan intends to: society of PEMEX s role in the Energy Reform. investors on PEMEX s current financial situation and outlook. potential partners areas of opportunity to invest in PEMEX. PEMEX s workers of its vision and the path it will follow in the years to come. 2 The Short-term Challenge Adjust cost structure and Business strategy to a low oil price scenario Budget adjustment Austerity measures Fiscal discipline Budget control The Historic Opportunity Use all instruments and flexibility available from the Energy Reform Focus on strategic activities Alliances and joint ventures Operational efficiency and effectiveness Positioning for the Future.

2 Challenge and Opportunity 3 Company FORTUNE 500 98 PEMEX at a Glance Present along the entire value chain 8 15 5 5 1 7 Oil producer Refining company in the world Logistics company in the world by assets Producer of petrochemicals in Latin America Producer of phosphates in Latin America Trading company in the world Sales equivalent to Uruguay s GDP More than 70 Products Sold 8 Drilling company 4 Pemex Industrial Transformation Pemex Logistics Pemex Ethylene Pemex Fertilizers Pemex International Pemex Exploration and Production Pemex Drilling and Services Agenda Financial Situation and Outlook Pemex Exploration and Production Pemex Industrial Transformation Pemex Logistics Pemex Ethylene Pemex Fertilizers Pemex Trading Safety and Sustainability Final Considerations 5 Increased access to financial markets and active liability management Strengthening of the financial balance1 Budget Adjustment Financial Outlook: Achieving Stability Today PEMEX has stable finances In 2017 PEMEX will achieve a primary surplus 1/ The financial balance considers the result from subtracting total expenses (including financing costs) from total revenues.

3 6 Financial Outlook: Budget Adjustment (1/3) Like all other oil companies in the world, PEMEX reacted to the low oil price environment with a budget adjustment Budget adjustment of 100 billion pesos, approximately 20% of company's budget. Source: Wood Mackenzie, May 2016 1/ For PEMEX it includes cuts in investment in the entire company, not only in Pemex Exploration and Production. -71% -68% -48% -45% -40% -37% -35% -30% -29% -27% -80%-70%-60%-50%-40%-30%-20%-10%0%Percen tage Change Change in investment from 2014 to 20161/ 7 Financial Outlook: Budget Adjustment (2/3) PEMEX will meet its 100 billion pesos Budget Adjustment and its financial targets. Adjust portfolio to profitable investments: 6 billion pesos Halted production in wells where extraction cost was higher than 25 dollars per barrel. Reassess investments without compromising future production using the tools and flexibility provided by the Energy Reform: 65 billion pesos Deep-water investment was cut by 13 billion pesos in 2016.

4 That project is Trion which will be auctioned in December. Farm outs of Ayin-Batsil in shallow waters and C rdenas-Mora and Ogarrio onshore fields will be tendered in April 2017, in Rounds and , respectively. In Industrial Transformation, investments for the reconfiguration of refineries were reassessed to be carried out through joint ventures. For example, Tula's coker is being reconsidered through a tolling service contract in 2017. 8 81 27 010203040506070809020152016 Direct Award (% of the total purchased amount) Financial Outlook: Budget Adjustment (3/3) Generate Efficiencies and Cost Reduction: 29 billion pesos The billion pesos goal was exceeded. To date, the projection of savings for the end of the year is 35 billion pesos. Corporate Austerity Transparency in Procurement 35% increase in the number of participants 1/ From Deputy Manager level 2/ Only considers April to September 2016.

5 Savings from efficiencies and cost reduction (billion pesos) Concept Amount Renegotiation of contracts Workforce optimization Administrative expenses Efficiencies and cost reduction Administrative Austerity 914 581 0100200300400500600700800900100020152016 Senior1/ Corporate Positions (number of positions) 2/ 9 Financial Outlook: Strengthening of the Financial Balance (1/2) Federal Government Support Measures Fiscal Benefit MXN billion to reduce financial deficit. Cash Flow Injection MXN billion to reduce accounts payable to suppliers As of October 2016, 142 of the 147 billion pesos have been paid, the rest have been scheduled for payment. The projected accounts payable to suppliers for the end of the year is in accordance with the company s size. Pension Liability Support MXN 1843 billion Reduces funding needs Complements one to one the savings in the pension liability reached by PEMEX.

6 1/ billion pesos comprised of billion pesos of cash flow injection and 47 billion pesos budget liberalization for pension liabilities for 2016. 2/ Cost cap set at USD for shallow waters and at USD for onshore fields, to similar levels set on the previous fiscal regime and compared to current cost cap of of the value of the hydrocarbons extracted. Considers 25 USD/b for the Mexican Crude Oil Basket. 3/ 184 billion pesos comprised of billion pesos of non-tradable notes and 47 billion pesos for pension liabilities for 2016. 10 Financial Outlook: Strengthening of the Financial Balance (2/2) - 20,000 40,000 60,000 80,000 100,000201620212026203120362041204620512 05620612066207120762081208620912096 Million 2015 pesos Annual Expenditures in Pensions (Million 2015 pesos) Annual expenditure with ReformPensioners in process of paymentAnnual expenditure without ReformIn 2038 a maximum saving in annual expenditure is reached for 17 billion pesos.

7 PEMEX s pension reform stopped the increase of pension liabilities. Starting in January 2016, new workers are incorporated into a financially sustainable individual accounts system. The change in the pension regime consisted of: A 5-year increase in the retirement age and seniority immediately for all white collar employees and for unionized workers with less than 15 years of service. 92,475 (year 2038) 75,354 (year 2038) */ Includes a 25 billion pesos reduction, additional to the 184 billion pesos of the savings from the Reform, due to changes in the discount rate and population base for the actuarial computation in 2015 after the Reform. 1,488 1,279 1,095 184 184 25 8009001,0001,1001,2001,3001,4001,500 Before the ReformSavings of the Reform andchanges in discount rateand populationAfter the ReformTreasury ContributionUn-funded LiabilityBillion pesos 2015 Reduction of the un-funded Pension Liability (MXN billion) 209* 11 Financial Outlook: Access to financial markets and active liability management The markets have responded positively.

8 Decrease in the spread between PEMEX s and Mexico s sovereign bond by 148 basis points. vs UMS 5aPemex 5a USDY ield to maturity (%) Basis points Historical maximum -148bp Moody s Downgrade Mar 31 Budget cut Feb 12 Capitalization Announcement Apr 13 -35 bp -3 bp -56bp PEMEX s Bonds 5y in Dollars -54bp Source: Bloomberg Jan -2016 Mar -2016 May -2016 Jul -2016 Sept -2016 Spread vs. UMS Pemex 5Y USD 12 Financial Outlook: Access to financial markets and active liability management February March June July October USD 5 Billion Rate USD Billion USD 380 Million USD 760 Million USD Billion Rate Rate Rate Rate Oversubscribed by times Oversubscribed by times Oversubscribed by times (Common Market Demand) Minimum nominal rate reached in any currency First operation of this kind since 2007 Most Important Emissions Active Liability Management 13 Financial Outlook.

9 Access to financial markets and active liability management 01,0002,0003,0004,0005,0006,0007,0008,00 0 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Millions USD Consolidated historical balance in cash (USD million) Average term of PEMEX s debt During 2016, the average term of the debt portfolio increased by 1 year. PEMEX's consolidated cash position was improved. 14 Financial Outlook: Scenarios with Realistic Premises and Conservative Assumptions The financial scenario for 2017 marks an inflection point in the trend: Primary Surplus (first time since 2012) billion pesos Attainable Production Platform million barrels per day Conservative Price Projection 42 dollars per barrel Going forward we will focus on: Accelerating the implementation of the Energy Reform Profitability approach Improvements in costs and efficiency Short-Te r m Medium-Te r m 15 Financial Outlook: Scenarios with Realistic Premises and Conservative Assumptions 55 58 59 60 61 42 54 55 57 56 48 56 68 71 71 404550556065707520172018201920202021 Price of Oil (USD per Barrel) BRENT futurosPEMEXPETROBRASS ource: Bloomberg (October), Company s website and Pemex.

10 Funding Costs (Percentage) Realistic Premises Projected oil prices in line with Brent futures and adjusted for the Mexican Mix. Increasing interest rates in accordance with the averages for the market s futures. Exchange rates used in the SHCP s 2017 Economic Package. Conservative Assumptions Additional earnings from divestments are not taken into consideration. Considers the same cost structure achieved in 2016. Going forward, increases in productivity are documented individually. Liberalization of resources due to investments through partnerships will be destined to improve the company s financial flows. Futures 16 Financial Outlook: Scenarios Pemex Exploration and Production: Concentrates on assignments that are profitable after taxes. Pemex Industrial Transformation: Partnerships in the operation of auxiliary activities and partnerships to configure refineries.