Weekly Report 54 by PRODENSA

GENERAL SITUATION IN MEXICO

Weekly Review # 54 I May 12, 2021

CONFIRMED CASES: 2,366,496

NEW CASES REPORTED: 704

DEATHS: 219,089

ACCUMULATED DEATHS PER DAY

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

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

Information updated on May 10, 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 1834.89

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 10, 2021, globally there have been reported confirmed 157,973,438 cases (677,545 new cases) of COVID-19 and 3,288,455 deaths (11,061 new deaths*). Lethal rate: 2.1%. • In the last 14 days, the number of new cases accounts for 7% (10,903,609) 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 10

DEATH INCIDENTS IN POPULATION BY REGION AS OF MAY 10

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 May 5-11, 2021

HEALTH PULSE Undersecretary Hugo Lopez-Gatell presented the technical report on COVID-19, underlining that there have been 4 continuous months of reduction of the virus, the application of 9.5 million of the complete vaccination scheme, and a significant decrease in hospitalized patients, allowing the release of beds in hospitals. Regarding the National Vaccination Strategy, Dr. Lopez-Gatell indicated that 21,358,971 doses have been applied, benefiting 14,220,401 people who have received at least one dose. Similarly, he commented that a total of 27,093,685 doses have arrived. Regarding educational personnel, this week, immunization will begin in 8 states. Finally, he declared that just over 2 million vaccines will be received from Pfizer and CanSino this week. MEXICO CITY METRO ACCIDENT Andres Manuel Lopez Obrador indicated that the federal government supports the position of the CDMX government. Among the expert work carried out by the FGR, an international specialized company will also be sought to carry out an external expert opinion and find out the causes of this accident. Currently, the line is closed, and 490 buses are serving the route of line 12. The entire structural review of the line will be carried out, a review that will be reported.

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

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference May 5-11, 2021 EUROPEAN UNION REQUIREMENTS To an express question about the requirement that people who want to enter the European Union must be vaccinated with certain vaccines, establishing that the Sputnik V and Cansino vaccines are not valid, the President affirmed that there is a good relationship with the European Union. He pointed out that they must accept all types of vaccines derived from a universal conception of health, regardless of brand and ideologies. ECONOMIC GROWTH The President announced that in March of this year, the monthly record for remittances received was reached. In March 2020, $ 4,045 million dollars were received. In the same month of this year, $ 4,152 million dollars were received. In April 2021, a non-final estimate of $ 4,069 million was received, an increase of 40% compared to the $ 2,910 million received in April 2020. Kamala Harris, Vice President of the United States, will visit Mexico on June 8 to speak mainly about the migratory phenomenon. The President reiterated his proposal to create jobs for migrants from Central America through the “Sembrando Vida” program and through temporary work visas in the United States. The President reported that the release is not just a matter for the judge who ordered his release. He pointed out that it is a matter of State and that the Prosecutor’s Office still has various elements against Palma Salazar.

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

Regarding the publication of the provenance of lawlessness against the governor of Tamaulipas, Francisco Garcia Cabeza de Vaca, President Lopez Obrador stressed that it is a matter that must be resolved by the Supreme Court since there are two legal interpretations of the case. He commented that he is oblivious to this process that responds to a request from the Attorney General’s Office for the alleged crime of tax fraud.

VACCINATION PROGRESS

As of May 10, 21,300,414 doses had been applied. Since last week, the government stopped informing how many people have the complete scheme. Of all the doses applied, 10,699,083 were for elderly citizens; 1,328,407 doses had been applied to teachers and 1,079,465 for people over 50 years old. As of now, 27,093,685 doses have been received. The vaccines applied in Mexico are Pfizer BioNtech, AstraZeneca, SinoVac, Sputnik V, and Cansino.

MEASURES TAKEN BY STATES IN MEXICO

BAJA CALIFORNIA Remaining in the medium risk tier, Baja California is experiencing record low mortality rates in a year, with three continuous weeks of decreasing numbers, as stated by Alonzo PerezRico, Baja California´s Health Secretary. According to the official data, there are currently 330 confirmed Covid-19 cases, with an increase in the municipalities of Mexicali, Ensenada, and Rosarito. Hospital occupancy decreased to 21.40%, with 606 hospital beds available and 206 available respirators. According to the last cut on May 11th, 322,515 people have been vaccinated, including adults over 50 years old, medical staff, academic staff, and pregnant women. Restrictions continue to apply to different activities and distancing measures required in most businesses in order to prevent further increase in Covid-19 cases.

SONORA After several weeks stationed in the medium risk tier, the State of Sonora improved its Covid-19 situation, and for the week of May 10th, it has been considered again to be in the lowrisk tier or green traffic light. Out of the 72 municipalities in Sonora, only Hermosillo, Hutabampo, and Caborca are considered medium risk, while the rest of the state is at the low-risk tier. State officials reported on May 11th that there are currently 915 confirmed Covid-19 cases in the state, with 58 current hospitalized patients, down from 87 last week. It was also reported that 40 patients are considered acutely ill and 11 critical patients using respirators, down from 25 last week. There were also reported 37 new confirmed cases, and there have not been new losses of life in the past 24 hours. Over 330,000 people have received the COVID-19 vaccine, mainly in the group of adults over 60 years old. The vaccination campaign was open last week for adults over 50 years old. Starting on May 11th, over 71,000 vaccines will be applied to the academic sector in an effort to begin bringing inperson classes back.

MEASURES TAKEN BY STATES IN MEXICO

COAHUILA The Ministry of Health of Coahuila plans to vaccinate by Friday, May 14, 2,000 teachers who missed receiving the vaccine against COVID-19 CanSino. It should be remembered that the CanSino vaccine was destined for that sector of the population because it only consists of a single application, unlike the rest. At least 400 teachers did not agree to be vaccinated against COVID-19 in Coahuila, and that implies that they should present test results every 15 days, and they will cover that expense before returning to classes. TAMAULIPAS For two more weeks, Tamaulipas will remain in yellow on the National Epidemiological Risk Traffic Light of the Federal Ministry of Health, which indicates that the risk of contagion of COVID-19 is medium. It is worth mentioning that the Tamaulipas Ministry of Education (SET) plans to start a pilot plan to return to face-toface classes in 50 schools, mainly in rural areas, in the coming days. However, with the return to yellow, the state authority foresees that it could be until the next school year when the students can return to class.

NUEVO LEON After a state traffic light of week 17 with an indicator in red, one in orange, one in yellow, and seven in green, the Health Safety Council of Nuevo Leon decided to remove the access restrictions for pregnant women. They will be allowed to enter all the money orders, from 5 in the morning to 5 in the afternoon.

MEASURES TAKEN BY STATES IN MEXICO

JALISCO Jalisco’s Ministry of Health reported this Monday that a new shipment with 96,000 vaccines from the Sinovac laboratory arrived at the entity. He said the second doses will be applied to complete immunization schedules in older adults in Guadalajara, Ocotlan, Chapala, and Ciudad Guzman. In addition, the Secretary of Health, Fernando Petersen, informed that tomorrow the vaccination with a second dose of the pharmaceutical company Pfizer-BioNTech will start in the municipalities of Tlajomulco de Zuñiga and El Salto. In this way, he added, they will cover the schemes of people over 60 years of age in 124 municipalities of the state, leaving only Zapopan pending. Almost five kilometers of a row of cars for vaccines in the CUAAD Petersen Aranguren said that this afternoon the vaccination points will be announced, and invited the population to remain calm and not spend the night in the modules “because the second doses are guaranteed for all those who received the first. With this reception, there are 19 vaccine deliveries for Jalisco since the Federal vaccination scheme began.

GUANAJUATO In Guanajuato, there are 132 thousand 366 confirmed cases of COVID-19, 758 are under investigation, while there are already 160 thousand 321 cases discarded. As for the cases by community transmission, there are already 132,210 identified. In addition, the number of cases recovered from the disease now amounts to 120 thousand 480, and there have been 10 thousand 940 deaths in the entity. In a year, almost since the first appearance of the virus in the state, the mental health services have reinforced their strategies for the care of personnel who, from the first battlefront and indirectly in other essential functions, have suffered emotional wear. According to statistics from the State Mental Health Area Directorate, 46,859 psycho-emotional support services have been offered to health personnel. Since the pandemic began, doctors face an accelerating number of deaths and illnesses every day. The Minister of Health, Daniel Diaz Martinez, called on the population of Guanajuato to show solidarity with the health personnel because they have faced tough battles to save infected patients within the reconfigured units for care.

MEASURES TAKEN BY STATES IN MEXICO

QUERETARO For the seventh consecutive week, the decrease in active cases of COVID-19 in Queretaro continues, since, until this Saturday, there were 413 active cases, which is compared to the levels that were presented in July. In the Modulation Index, the state government reported that there were important results in the virus’s behavior in the last week since there was a decrease in cases despite the Easter holiday period and the opening to the economy. They specified that until this May 8, there were 413 active cases of COVID-19 in the State, and the goal for that week was 350. There was also a decrease in hospitalization since the average is 12.7%. State authorities also indicated that the “last test” is on May 10 since these festive events increase the cases by approximately between 22 and 39%. So they asked the population to avoid going out to celebrate or hold meetings in an open space, with no more than two additional safe bubbles, in addition to avoiding sharing food, plates, and glasses. AGUASCALIENTES To follow up on the National Vaccination Plan in our Aguascalientes, On Tuesday, May 11, the second dose of vaccine against COVID-19 from the pharmaceutical company Sinovac began to be applied to people 60 years of age and over who were vaccinated exclusively on May 30. March. This was reported by the Representative

of the Government of Mexico in Aguascalientes, Aldo Ruiz Sanchez, who pointed out that in order to complete the vaccination scheme for people 60 years of age and older who attended the call on March 30, four points will be enabled within the city capital with an opening hours from 8:00 a.m. to 5:00 p.m. The Federal Official stated that it is a requirement that each person goes to the same point where the first dose was applied, as well as its corresponding proof, to ensure that no one is left without the biological. On May 10, The Ministry of Health reported 30 cases and 10 more deaths from COVID-19 in Aguascalientes, for which the entity registers a total of 21,922 infections and 2,767 accumulated deaths. There are 50 suspected cases and 318 active patients. The fatality rate of the coronavirus in the state is 12.6%. Of the 3rd new cases, 26 were reported in the capital municipality, two more in Jesus Maria and the remaining two in Pabellon de Arteaga. Aguascalientes registers an occupancy of less than 30% in general hospital beds and beds with ventilators. The SARI network counts 88 hospitalized patients, of which 48 are seriously ill, and 40 are intubated. The main comorbidities among those who died from COVID-19 are hypertension (35.1%), diabetes (29.0%), and obesity (10.8%). 65.3% of deaths have occurred in people aged 60 years and over.

MEASURES TAKEN BY STATES IN MEXICO

STATE OF MEXICO The State of Mexico continues to be in yellow at the epidemiological traffic light. Authorities asked the population to continue to be careful and use a facemask and social distancing.

CDMX For the first time, since the beginning of the pandemic, Mexico City is in yellow color of the epidemiological traffic light due to the decrease in contagions and deaths. Authorities warned the population to continue to be cautious and mentioned the economic opening will be gradual. Banks are allowed to operate at regular schedules; businesses can operate at 40% capacity; movie theaters can open with 40% capacity as well. Conventions may happen with no more than 50 people in close spaces.

MANUFACTURING INDUSTRY LARGEST U.S. LABOR CENTRAL TO FILE FIRST LABOR COMPLAINT AGAINST MEXICO UNDER USMCA The AFL-CIO, the largest U.S. labor federation, delivered to Washington a request for the U.S. government to file the first labor complaint against Mexico under the new North American trade agreement USMCA, the union said. The AFL-CIO petition, which was shared with Reuters, states that workers at the Tridonex auto parts plant in Matamoros were denied independent union representation in violation of the treaty, which replaced NAFTA last year. Tridonex’s parent company is Philadelphia-based Cardone Industries, controlled by Canada’s Brookfield Asset Management. Under the USMCA’s “Rapid Response Labor Mechanism,” companies in Mexico and the United States can face tariffs and other penalties for failing to guarantee workers’ rights, such as freedom of association. The AFL-CIO petition marks the first time the labor enforcement component of the USMCA trade agreement has been implemented. Businesses and activists will be watching closely. “This sets a precedent,” said Catherine Feingold, director of the AFL-CIO’s international department, which pushed for better labor rights provisions in USMCA. “It’s going to be a test for this new system.” The AFL-CIO will send its petition to the U.S. Bureau of Trade and Labor Affairs, which has 30 days to review

the complaint and determine whether to take the case to the Mexican government for further review. Mexican labor officials would then work with their U.S. counterparts to agree on terms to correct the situation. The entire process, including a final stage to determine possible penalties and fines, must be resolved within five months.

MANUFACTURING INDUSTRY

MEXICO REVERSES THE DECLINE IN AUTO PARTS EXPORTS TO THE U.S. In March, Mexico reversed a negative trend in its auto parts exports to the United States, to which it is its main global supplier. In that month, Mexico’s foreign automotive parts sales to the U.S. market totaled 5.988 billion dollars, a 28.6% increase. As a result, these exports climbed 5.3% in the first quarter, to 15.939 billion dollars. For Mexico, the results have implied a change in trend since this indicator fell in the previous two months: -0.9% in January and -9.1% in February.

In recent years, the country has evolved from its initial focus on maquilas to become a powerhouse in the global automotive industry, creating new opportunities for domestic and international suppliers of components and services that contributed to the rapid development of this sector. Mexico increased its market share in March 2021, as total auto parts imports to the United States climbed 25.9 percent in that month, to $15.106 billion, while Mexico’s dynamism was 28.6 percent. However, Mexico’s corresponding growth (5.3%) in the cumulative first quarter of 2021 was below the rise in U.S. auto parts imports in the same period (7.6%), according to data from the U.S. Department of Commerce.

EHS

RECOMMENDATIONS RUNNING ESSENTIAL ERRANDS DELIVERIES & TAKEOUT Use delivery services when possible Limit in-person contact if possible • Pay online or on the phone when you order (if possible). • Accept deliveries without in-person contact whenever possible. Ask for deliveries to be left in a safe spot outside your house (such as your front porch or lobby), with no person-to-person interaction. Otherwise, stay at least 6 feet away from the delivery person. Meal Kits and Delivery • Because of the COVID-19 outbreak, some deliveries have been delayed. • If you have a meal kit or prepared meal delivery, check the temperature of the food immediately after it is delivered. • The only way to know the food is safe to eat is to use a food thermometer to ensure the food is 40°F or below. • Refrigerate or freeze your delivery as soon as possible. Wash your hands or use hand sanitizer after accepting deliveries or collecting mail • After receiving your delivery or bringing home your takeout food, wash your hands with soap and water for 20 seconds. If soap and water are not available, use a hand sanitizer with at least 60% alcohol. • After collecting mail from a post office or home mailbox, wash your hands with soap and water for at least 20 seconds or use a hand sanitizer with at least 60% alcohol.

DAVID ANTUNEZ Environmental, Health, and Safety Director.

BACK-TO-SCHOOL PILOT PROGRAMS In the following weeks, back-to-school pilot programs will begin in at least three states of the country: Coahuila, Campeche, and Veracruz will reopen schools this May. For companies, it is important to take into account that with the return to on-site classes, workers with school-age children will need to readapt to the new modality that the return to classes will determine for their children. It will include staggered schedules, reduced working hours, and hybrid schemes, which may imply that some workers may need, at some time or during someday, flexibility to attend or accompany their children to this return to classes.

ALVARO GARCIA HR, Vice President

HOW TO CONNECT WITH YOUR TEAM THROUGH YOUR BRAND STORY? Your brand story must be authentic and express the why’s of your business to create trust.

YOELLE ROJAS Public Affairs & Communications Director

1. Your brand story must help you connect with your team. 2. Base your story on the why’s of your brand. 3. Create a personality for your story; the tone, voice, and message must be clear and adapted for the audience. 4. Your story has to be simple. 5. Spread your story through your team and be consistent. Actions speak louder than words. Your story reflects your values and your vision; through good communication and some recommended actions, you can improve your connection with your team. Contact us to learn more best practices and recommended actions to reinforce your connection with your employees.

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