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GENERAL SITUATION IN MEXICO

Weekly Review # 53 I May 5, 2021

CONFIRMED CASES: 2

NEW CASES REPORTED: 1,027

DEATHS: 217,345

ACCUMULATED DEATHS PER DAY

SOURCE: https://www.gob.mx/salud/

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

Information updated on May 3, 2021 at 19:00 hrs local time.

INCREASE OF CONFIRMED CASES SINCE THE FIRST REPORT MAP WITH THE DISTRIBUTION OF THE INCIDENCE RATE OF ACCUMULATED CASES OF COVID-19 BY ENTITY OF RESIDENCE.

National rate 1822.02

0 to 500 (1 states) 501 to 1,000 (4 states) 1,001 to 1,500 (12 states) 1,5001 to 2,000 (6 states) >2,000 (9 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of May 3, 2021, globally there have been reported confirmed 152,534,452 cases (721,896 new cases) of COVID-19 and 3,198,528 deaths (11,711 new deaths*). Lethal rate: 2.1%. • In the last 14 days, the number of new cases accounts for 7% (11,254,572) of the total of accumulated cases. *https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200323-sitrep-63-covid-19.pdf?sfvrsn=d97cb6dd_2

SOURCE: https://www.gob.mx/salud/

TOWARDS THE “NEW NORMAL” INCIDENTS OF CONTAGIONS IN THE POPULATION BY REGION AS OF MAY 4

DEATH INCIDENTS IN POPULATION BY REGION AS OF MAY 4

SOURCE: https://www.gob.mx/salud/

TOWARDS THE “NEW NORMAL”

The traffic light will be as follows:

SOURCE: https://www.gob.mx/salud/

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference April 27 to May 3, 2021

TRAVEL ALERTS TO MEXICO The president informed that next week he will meet virtually with the Vice President of the United States, Kamala Harris, to discuss the immigration issue. He added that the border with the United States will be reopened soon, given that there is a high demand by some American sectors.

TRIP TO RUSSIA Several meetings were held with researchers, including meetings with the Russian Foreign Minister. This opportunity arose from a call between the heads of state of the two countries. It opened up the possibility of working with the Russian Direct Research Fund and the Russian National Research Center.

VACCINES He stated that vaccination of 40- to 49-year-olds will begin in the middle of the year and predicted that 50 million Mexicans will be vaccinated by the beginning of July.

During the working visit, it was agreed: • The filling and packaging in Mexico of the vaccine Sputnik V. • To guarantee the supply of vaccines in our country. • Discussions with COFEPRIS on the use of the single-dose Sputnik Light vaccine. Mexico is the second destination for the Sputnik V vaccine at the international level.

HEALTH SITUATION Hugo Lopez Gatell, Undersecretary of Prevention and Health Promotion, mentioned that the reduction continues of cases and deaths (13% between weeks 15 and 16). The active epidemic represents less than 1% of the situation. 8,062,122 people have vaccinated with a full scheme. He added that fewer people are ill every day, and fewer require hospitalization. No federal entity has hospital occupancy above 30%. Only Chihuahua and Tabasco have occupancies above 30% in ventilator beds.

SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg

TRIP TO SPAIN During the working trip of Chancellor Ebrard to Spain, the following agreements were reached: • To participate with the Ministry of Foreign Affairs in vaccine donation programs for the region. • To explore the possibility of conducting reciprocal phase three studies of Mexican and Spanish vaccines. • Establish scientific collaboration mechanisms to advance towards the creation of a vaccine with ARNm technology.

VACCINATION PROGRESS

As of May 3, 18,471,669 doses had been applied. From this, 8,062,122 have the complete scheme (2 doses). 10,684,727 elderly citizens have been vaccinated with one dose. 916,135 doses had been applied to teachers. As of now, 25,424,355 doses have been received. Dr. Hugo Lopez Gatell mentioned that 856,912 doses of the CanSino vaccine will be released on Friday, May 7. One million doses of Sinovac vaccines will arrive in Mexico already packaged on May 8. Marcelo Ebrard informed that five vaccines are in use to date, with a larger number from Pfizer. Last week more than 3 million vaccines arrived in Mexico.

MEASURES TAKEN BY STATES IN MEXICO

BAJA CALIFORNIA Baja California continues to be considered in the medium-risk tier or yellow traffic light for the week of May 2nd to May 9th. According to the official data shared by the State´s Health Secretary, there are currently 347 confirmed Covid-19 cases, with an increase in the municipalities of Mexicali, Tijuana, and Tecate. Hospital occupancy increased is at 26.28%, with 593 hospital beds available and 227 available respirators. According to the last cut on April 20th, there are 255,950 adults over 60 years old that have been vaccinated and 204,944 adults that have already received the second vaccine. Starting on May 3rd, the tier of adults between 50 and 59 years of age has started to receive vaccines, mainly in Mexicali, Ensenada, Rosarito, and San Quintin. Restrictions continue to apply to different activities and distancing measures required in most businesses to prevent further increase in Covid-19 cases.

SONORA For the week of May 2nd to May 9th, the State of Sonora continues to be considered on the medium-risk tier or yellow traffic light. State officials reported on May 4th that there are currently 1,007 confirmed Covid-19 cases in Sonora, with 87 current hospitalized patients, down from 99 last week. It was also reported that 48 patients are considered acutely ill and 25 critical patients using respirators. There were also reported 55 new confirmed cases and one patient from the municipality of Nogales that lost her life in the last 24 hours. With the vaccination campaign being applied to most adults over 60 years old, starting May 5th, the vaccination campaign will move to the tier of adults between 50 and 59 years old, starting in the municipalities of Cananea and Puerto Peñasco, before moving to other municipalities as new shipments of vaccines are received.

MEASURES TAKEN BY STATES IN MEXICO

COAHUILA SNTE and the Secretary of Education in Coahuila, the tentative date for the return to classes would be next May 17, but only under the blended modality and in a universe of 312 schools. TAMAULIPAS The return to face-to-face classes in Tamaulipas will be two effective days a week, and it will start by the end of this month in rural schools of the entity with preventive measures for the Covid-19. The Government argued that the return to classes at the campuses will not be massive but based on the letter of the child’s last name. NUEVO LEON Consuelo Treviño Garza, Undersecretary for Disease Prevention and Control of the state of Nuevo León, mentioned that in the entity, there is no record of any case of covid-19 with the Indian variant of the virus. On the other hand, the state official explained that as of May 3, there are 514 thousand 719 people vaccinated with the first dose and 117 thousand 113 with the second dose.

MEASURES TAKEN BY STATES IN MEXICO

JALISCO Jalisco health authorities highlighted this Monday, May 3, that thanks to the organization and coordination of more than 500 service providers, doctors, and nurses participating in the Metropolitan Vaccination Center, the immunization of teachers against COVID-19 has been agile and continuous. On Tuesday, 4 began the application of the second dose of vaccine against COVID-19 in Guadalajara. The above, explained the general coordinator of processes and logistics of the Center, Israel Garcia, is mainly due to the application developed by state authorities for the issuance of QR codes that allow the pre-registration of teachers, issues an invitation to attend the immunization at specific times (although it does not work as an appointment) and helps to corroborate their data for entry to the Auditorium. In addition to this, the coordinator explained, it is because a phased system has also been established that allows teachers to be immunized in 12 “cells” or groups of 20 people. However, it is possible to expand five more cells in case the confluence increases. Translated by the hour, he said, it is possible to immunize up to 2,600 teachers.

QUERETARO The Ministry of Health informed that 2 people died from Covid-19 and 185 more were infected. In total, there are 67,566 cases and 4,646 deaths. The victims were a 51-year-old man and a 65-year-old woman without comorbidity, who were hospitalized. There are also 130 hospitalized patients, 59 of whom are in serious condition; therefore, hospital occupancy is 18% for beds with ventilator and 12% for beds without a ventilator. While there are 580 patients with mild symptomatology, isolation, and management at home and seven in the Medical Isolation Unit. And there are 61,695 discharges. The Government of Queretaro stated that in the state, “we lost the week against COVID-19”. The authorities noted this due to the fact that 48 more people were reported yesterday who may be transmitters of the virus. In addition, the number of active cases of COVID-19 increased by 209 during the last week. So far, 715 Queretaro citizens can spread the virus to others. “If it had not been for yesterday, COVID-19 would have had its first week undefeated, just when we are waiting for what happens in India,” said the Ministry of Health.

MEASURES TAKEN BY STATES IN MEXICO

GUANAJUATO In Guanajuato, 131,957 cases of Covid-19 have been confirmed, 772 are under investigation, while 157,315 cases have been ruled out. As for community transmission, 131,801 cases have been identified. In addition, 119,678 cases of the disease have been recovered. There are 10,889 deaths in the entity. A new batch of 135,000 vaccines against covid-19 arrived in Guanajuato to immunize education personnel and teachers with their first dose, while 39,710 will be used to vaccinate senior citizens. For senior citizens, Apaseo el Grande, Dolores Hidalgo, San Felipe, Abasolo, and Juventino Rosa will be the municipalities to receive their second dose on time from the Russian pharmaceutical company Sputnik V. As it is a vaccine with a special formula, the population must comply with the order and logistics measures implemented by the health authority since these doses are exclusively for older adults vaccinated with the first dose. According to the Federal Government, this Tuesday, May 4, educational personnel will be immunized at four vaccination points where 135 thousand biologicals will be applied with the help of personnel from the Ministry of National Defense (SEDENA), the Mexican Social Security Institute (IMSS), and 16 Servants of the Nation in coordination with the Ministry of Health personnel.

AGUASCALIENTES Aguascalientes registered 12 more deaths due to COVID-19, bringing the total number of deaths due to the pandemic to 2,696. Also, 38 more infections were reported, so the state accumulates 21,702 cases of coronavirus. However, about 18,639 people have managed to overcome the disease. The COVID-19 case fatality rate in the state rose to 12.4%. There are 44 suspected cases and 336 active patients. Of the 38 cases reported today, 36 occurred in the capital municipality and two more in Jesús María. The entity maintains a hospital occupancy of less than 30% in general beds and beds with a ventilator. There are 104 patients hospitalized in the different hospitals in the state, of which 60 are in serious condition, and 44 are intubated. Thirty-five percent of those who died of COVID-19 in Aguascalientes also suffered from arterial hypertension; 28.9% suffered from diabetes and 10.9% from obesity. These three diseases are the main comorbidities among those killed by the coronavirus.

MEASURES TAKEN BY STATES IN MEXICO

STATE OF MEXICO Due to the decrease of contagions and deaths, the State of Mexico turned color yellow at the epidemiological traffic light. Authorities asked the population to continue to be careful and continue to use a facemask and social distancing.

CDMX The general director of the Digital Agency for Public Innovation of the CDMX informed that the city will remain in orange at the epidemiological traffic light. He highlighted that there was a 25% reduction in hospital occupancy compared to the previous week and mentioned that there will be a 30% increase in the capacity of commercial establishments.

MANUFACTURING INDUSTRY BUSINESS CONFIDENCE RETURNS TO PRE-PANDEMIC LEVELS In April, business confidence in the main sectors of the Mexican economy practically reached the levels before the beginning of the Covid-19 pandemic in Mexico, according to the monthly record compiled by the National Institute of Geography and Statistics (INEGI). In the case of manufacturing - the most dynamic line of business confidence - the indicator prepared by Inegi reached 48.7 points, which implied a jump of three units with respect to the March reading and also signified a chain of 11 months of uninterrupted reactivation, after the slump of March, April and May, due to the confinement decreed in those months. This advance means that business confidence in manufacturing is already above February 2020 reading (47.3 points) before the beginning of the anti-Covid social distancing measures. In the construction sector, the business sentiment indicator rose 0.8 points to 46.1 points, following eight consecutive months of gains. This level is very similar to that of February 2020, which was 46.2 points.

UNPRECEDENTED WAVE OF CHANGES IN THE LABOR SECTOR Of Mexico’s markets, the labor market is one of the most transformed. In the last two years, labor legislation has undergone at least four major reforms, a number of changes not seen for forty years. Specialists agree that the rules of the game are not the same. International Workers’ Day has always been a date to commemorate the struggle for better working conditions. And two years ago, May 1 became the watershed of a wave of changes in the labor legal framework. From the reform of the labor justice system, collective bargaining, and union democracy to the recent modification of eight legal provisions to regulate outsourcing, the Federal Labor Law (LFT) has been transformed at an accelerated pace. “Labor law is undergoing an epochal change. We are experiencing, in a very short period of time, changes that we have not seen in decades,” says Jorge Sales Boyoli, national coordinator of the Labor Law Committee of the National Association of Corporate Lawyers (Anade). In 2019, the LFT was reformed to create the new labor justice system, with a big bet on conciliation. The magnitude of the change required a three-year term; the model is in its second stage of implementation and will conclude with a third stage in 2022. “We have a culture of almost 100 years of simulation, fraud, pseudo-representation, non-existence of rights that is not going to be resolved in 15 days,” says Alfonso Bouzas, coordinator of the Citizen Observatory of Labor Reform (OCRL).

MANUFACTURING INDUSTRY 2018

2019

DECEMBER 17 Minimum Wage A 16% increase in the minimum wage was announced for 2019; it went from 88.36 to 102.68 pesos per day across the board and 176.72 pesos per day on the northern border.

MAY 1 Labor Reform Changes in the areas of labor justice, union democracy, and collective bargaining in line with the new USMCA requirements go into effect.

JULY 2 Domestic workers The reform recognizing the full labor rights of domestic workers is published.

2020 JANUARY 6 Labor Center Law giving life to the Federal Center for Labor Conciliation and Registration, the new authority for union mediation and monitoring, is published.

NOVEMBER 16 Labor Reform A 15% increase in the minimum wage is authorized for 2021; the general minimum wage will be 141.70 pesos per day and 213.39 pesos per day on the northern border. For the first time, the wages of domestic workers and agricultural day laborers are included.

2021 JANUARY 11 Remote work Changes to the Federal Labor Law are enacted to regulate remote work and establish new obligations and responsibilities for employers and employees.

MARCH 30 Minimum Wage Changes in legal reform are published to guarantee that annual minimum wage increases will always be above inflation.

APRIL 24 Outsourcing Changes to eight laws are proposed to prohibit the subcontracting of personnel and regulate the outsourcing of services and specialized works.

NOVEMBER 16 Minimum Wage A 20% increase in the minimum wage is authorized for 2020; it will be 123.22 pesos per day in general and 185.56 pesos per day on the border.

EHS

RECOMMENDATIONS RUNNING ESSENTIAL ERRANDS.

GROCERY SHOPPING 1. Stay home if sick Avoid shopping if you are sick or have symptoms of COVID-19, which include a fever, cough, or shortness of breath. 2.Order online or use curbside pickup If possible, limit visiting the grocery store or other stores selling household essentials in person. In general, the more closely you interact with others and the longer that interaction, the higher the risk of COVID-19 spread. Order groceries and other items online for home delivery or curbside pickup (if possible), or check with your local grocery store to see if pre-order or drive-up options are available. 3.Protect yourself while shopping • Wear a mask in public settings and when around people who don’t live in your household, especially when social is distancing is difficult. • When you have to visit in person, go during hours when fewer people will be there (for example, early morning or late night). • If you are at higher risk for severe illness, find out if the store has special hours for people at higher risk. If they do, try to shop during those hours. • If you normally bring your own reusable shopping bags, ensure they are cleaned before each use. Some locations have temporarily banned the use of reusable shopping bags during the COVID-19 pandemic, so check your state, local, store, or market policies before bringing reusable bags. • Disinfect the shopping cart; use disinfecting wipes if available. • Do not touch your eyes, nose, or mouth with unwashed hands. • Stay at least 6 feet away from others while shopping and in lines. • Use marked entry or exit points and follow any directional signs or floor markings designed to keep people at least 6 feet apart. • Only touch products that you plan to purchase, if possible. • Consider not consuming any sample or purchase food or drink items from self-service stations. •If possible, use touchless payment (pay without touching money, a card, or a keypad). If you must handle money, a card, or use a keypad, use hand sanitizer right after paying.

DAVID ANTUNEZ Environmental, Health, and Safety Director.

COLLECTIVE BARGAINING AGREEMENT LEGITIMATION PROCEDURE Starting May 1st, the new Federal Center for Labor Conciliation and Registration takes the responsibility in Mexico of the Collective Bargaining Agreement legitimation procedure. As we return to a low epidemiological alert level, the number of legitimations to be performed has increased. Companies and unions are taking action in order to comply with the new consultation procedure with the workers as indicated in the transitory regime of the labor reform. To schedule a Legitimation procedure requires not only to follow the legitimation protocol but also to observe the approved health and safety criteria that indicate at what alert level it would be possible to carry out the procedure and at which, either by the number of workers, the type of sector (essential or non-essential) or the epidemic alert level will not be possible to be realized. For detailed guidance, contact us.

ALVARO GARCIA HR, Vice President

WHAT IS SOCIAL LISTENING, AND WHAT ARE THE BENEFITS FOR YOUR COMPANY?

PUBLIC AFFAIRS

LABOR

Social listening is the practice of monitoring public online conversations to access key insights about your brand, industry, competitors, or any other topics that may be of interest to your business.

YOELLE ROJAS Public Affairs & Communications Director

The main benefits are: • To protect your reputation. • Strengthen your brand image. • Detect new sales opportunities. • Improve your work environment and workers’ satisfaction.

Many people research companies and review what is being said about them. If you want to increase your sales, retain your talent or strengthen your relationship with your community, social listening will be the perfect measurement tool to understand the perception of your company. Contact us to find out more benefits of social listening and how to enhance them.