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7/30/2019 Presentation - Strategic Plan - May 2013
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Strategic Plan UpdateStrengthening the Business and Growth Model
May 17, 2013
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2
This presentation may contain certain statements that express the managements expectations, beliefs and
assumptions about future events or results. Such statements are not historical fact, being based on currently
available competitive, financial and economic data, and on current projections about the industries in which
BM&FBOVESPA works .
The verbs anticipate, believe, estimate, expect, forecast, plan, predict, project, target and other
such are intended to identify these forward-looking statements, which involve risks and uncertainties that could
cause actual results to differ materially from those projected in this presentation and do not guarantee any future
BM&FBOVESPA performance.
The factors that might affect performance include, but are not limited to: (i) market acceptance of BM&FBOVESPAservices; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitive
industries in which BM&FBOVESPA operates ; (iii) changes in (a) domestic and foreign legislation and taxation and
(b) government policies related to the financial and securities markets; (iv) increasing competition from new
entrants to the Brazilian markets; (v) ability to keep up with rapid changes in technological environment, including
the implementation of enhanced functionality demanded by BM&FBOVESPA customers; (vi) ability to maintain an
ongoing process for introducing competitive new products and services, while maintaining the competitiveness of
existing ones; (vii) ability to attract new customers in domestic and foreign jurisdictions; (viii) ability to expand the
offer of BM&FBOVESPA products in foreign jurisdictions.
All forward-looking statements in this presentation are based on information and data available as of the date
they were made, and BM&FBOVESPA undertakes no obligation to update them in light of new information or
future development.
This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall
there be any sale of securities where such offer or sale would be unlawful prior to registration or qualification
under the securities law. No offering shall be made except by means of a prospectus meeting the requirements of
Brazilian Securities and Exchange Commission CVM Instruction 400 of 2003, as amended.
Forward Looking Statements
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Strategic DriversCompetitive differentiation, growth and diversification
REVENUE
GROWTH ANDDIVERSIFICATION
Build on growth opportunities in the Brazilian capital market
Foster greater sophistication among participants and investors
Promote volume growth and revenue diversification
OPERATINGEXCELLENCE
Expand services quality and differentiation through the development of platformsthat bring efficiency to BVMF and market participants
Assure market integrity
Remain focused on cost control
FOCUS ON THECUSTOMER
Deepen the relationship with clients (investors, brokers and issuers), by deliveringhigh quality services and products, ensuring that this relationship is BVMFsgreatest differential
Expand the range and quality of services and products offered
INSTITUTIONALSTRENGTHENING
Maintain the balance between growth in revenue and results, operational
excellence, service quality and market integrity Develop initiatives that contribute to the safety, reliability and strengthening of the
market
SHAREHOLDERRETURN
Payment of at least 80% of GAAP earnings as dividends (100% in 2012)
Share Buyback Program
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End customer Intermediaries Issuers Regulators
New
Integrated
Clearinghouse
Concluded In testing In development
Projects:developm
entofnew
platform
s
Re
lationship
in
terfaces
Financial
Derivatives and
Commodities
Fee StructureAccesses and
Processes
Product
Development
Customer
ServiceServices
Equities and
Equity
Derivatives
Fixed IncomeOTC
Derivatives
Registration and Trading Platforms
Ma
in
stakeholders
Focus on continuous enhancement
Shareholders /
Bondholders
Execution of the Strategic PlanStrengthening of the business model and the competitive differential
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Revisiting the Fee StructureDrivers and challenges
GOALS AND REQUIREMENTS THATHAVE DRIVEN BVMF IN REVISITING ITSFEE POLICY AND DEVELOPINGINCENTIVE PROGRAMS
Stimulate volume and revenue growth
Strengthen the relationship with
brokers and banks Deepen clients segmentation
Eliminate cross subsidies amongproducts and markets
Benchmark international practices
Create a differential for BVMF in therelationship with clients
Incentivize product development andgrowth
Ongoing and harmonized process
FIRST OUTCOME: CHANGES TO CASHEQUITIES FEE POLICY
Reduction of the trading fee / rebalancingof trading and post-trade fees
Elimination of cross subsidies
Sharing economies of scale
Volume Discounts for day traders
Incentives for higher volumes, for a largernumber of clients
Create a BVMF differential in therelationship with customers
Progressive trading fee reduction for thecash equities market based on volumegrowth
Sharing future economies of scale
Benchmark international practices
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Additional costs for brokers (connectivity,trading screens and supervision tools)
Fragmentation of liquidity and possibledeterioration of the price discovery process
How to deliver an efficient pre-trade creditrisk process
Discussions about regulation and marketsupervision and the related additional costs
Competitive DifferentialInvesting to strengthen competitive differentiation
BVMF differentiates by offering afully integrated yet diversified
platform
while possible marketfragmentation raises questions and
will increase costs for brokersBVMF Revenues(% of 2012 total revenues)
8.7%Cash
equities
trading
28.9%Cash equities post-
trade
PUMA: state-of-the-art trading system forcash equities and derivatives (efficiency forparticipants)
Pre-trade credit risk (market integrity)
Competitive prices and growing feestructuresophistication
Active role in market supervision and in theenforcement of price discovery rules
Development of a new integratedclearinghouse and a new risk architecture(CORE) that will deliver capital efficiency tomarket participants
Fully integrated with market participantsand regulators
Back-office system (SINACOR) that isdominant among brokers
Beneficiary owner level model hasconsolidated
Additional costs for brokers (connectivity,back-office and other systems)
Capital allocation inefficiency for brokers
and investors Discussions about regulation and market
supervision and the related additional costs
Race to the bottom risk from competitionbetween clearinghouses
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Cost control and Return of Capital to ShareholdersCommitment to return of capital to shareholders
Returning most operating cash flow
to shareholders
Disciplined cost control
(R$ millions)
Intensive investment phase
(R$ millions)
544585 564
560-580
2010 2011 2012 2013E
268204
258
260-290
170-200
2010 2011 2012 2013E 2014E
CAGR (2010-2013E) of 1.6% vs. inflation of 5.8% p.a.1
1Expenses growth considering the mid-point budget for 2013 (BRL 570 million) and inflation CAGR (2010-2013) of the inflation is 5.8% p.a. Source: BCB Focus Bulletin (Nov. 30, 2012) -
estimated IPCA .
Capital return
(R$ millions)
1,612
Adj. Net
income
1,5461,586
1,074
Net
income
1,0481,145
1,145 912 1.074
435 606 16
1,579 1,5181,091
2010 2011 2012Total payout Buyback
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Financial HighlightsP/E analysis
Different earnings impact the P/E calculation and distort comparisons and market consensus
The reported adjusted net income reflects better the companys cash generation
1 Excludes the investment in associate (CME Group) accounted under the equity-method. 2Simulates the Interest on Capital amount that would be approved if
there was no goodwill tax benefit; 3Stock at R$13.79 (March 12 th, 2013).
EPS 2012 P/E3
Estimated GAAP EPS (A) 0.56 24.8
Earnings without goodwill = (A) x :1,142 0.64 21.7
Stock price discounted by goodwill NPV
(R$1.00 per share) / Earnings withoutgoodwill
0.64 20.1
Adjusted Earnings 0.84 16.5
15-20% impact on P/E multiple
Difference between GAAP EPS and
the EPS adjusted to non existence of
goodwill simulation
GAAP Book in 2012Current
Simulation without
goodwillR$ millions
EBT 1,511 1,511
Deferred Tax 539 -
Other taxes /credits (14) -
Total taxes 525 282
GAAP Net income 1,074 1,228 : 14.2%
Tax Book in 2012Current
Simulation
without goodwillR$ millions
EBT 1,511 1,511
(-) Goodwill amortization 1,586 -
(-) Interest on capital 90 680(2)
(=) Taxable earnings (165) 831
Tax (34%) (56) 282
Since 2009, the goodwill tax benefit has been recognized as deferred liability (being cashneutral), reducing the GAAP earnings
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0.9 1.53.7
14.6
38.2
2009 2010 2011 2012 2013*
48.874.0
ADTV before
Market Maker
ADTV after
Market Maker*
18.6 28.548.7
115.9101.0
2009 2010 2011 2012 2013*
BM&FBOVESPA Product DevelopmentIncreased sophistication of market participants
The rapid growth of these products is the result of the increased sophistication of local Brazilian market
participants, combined with initiatives implemented by BM&FBOVESPA in recent years
ETFs
(ADTV in R$ millions)
Options Market Maker**
(ADTV in R$ millions)
Real Estate Funds (FIIs)
(ADTV in R$ millions)
Tesouro Direto
(Custody in R$ billions)
2.93.9
6.1
9.0 9.8
2009 2010 2011 2012 2013*
12.720.5
30.2 31.9
46.0
2009 2010 2011 2012 2013*
Securities Lending
(Open position in R$ billions)
Agribusiness Credit Bills (LCAs)
(Average amount registered in R$ billions)
3.6 20.0
40.0
2011 2012 2013*
65% market share in Mar13
* Tesouro Direto and LCAs updated until Mar13; the others are updated until Apr13. ** On average , 12 months before and 12 months after the introduction ofmarket makers (each market maker program was introduced on a specific date).
Fast growing products: BM&FBOVESPA developments and a more sophisticated market
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BM&FBOVESPA Product DevelopmentLooking forwardpriorities
Small and medium entities (SMEs) Create conditions for SMEs to access market: ongoing discussions with government and regulator to
revisit both tax and regulatory framework
Securities lending
Improvements in the securities lending platform (BTC) model
Attraction of more players (locals and foreigners) to this market
Interest rate future contracts
Build a culture of trading SELIC rates and then a culture of trading longer term rates in Brazil
Offer the market more alternatives that follow Brazilian monetary policy closer
ETFs
Launching of fixed income and international indices ETFs
OTC and fixed income
Focus of BVMF in the short- and medium-term
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BM&FBOVESPA Product DevelopmentUpdating the OTC and Fixed Income platforms
Certification phase (integrated test with the market) of NDFs in Calypso platform started in Feb13
Deployment in 1Q13
Developments that should be concluded over the next 18 months
Derivatives Fixed income
Registratio
n
NDFs
Swaps
Flexible options
Exotic derivatives
Continuous development of the Calypsoplatform and introduction of new features
LCAs (improvements)
LCIs and CDBs (adaptation of the platformpending regulatory approval)
Trading
-
Trading platform for government andcorporate bonds
Fixed income ETFs (pending regulatoryapproval)
Changes in the fee policy
Changes in the securities listing procedures
and rules
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Post-trade IntegrationBVMFs current post-trade environment
Clearing CCP of the following markets:
Equities and
corporate debt
Cash equities, ETFs and BDRs
Bonds
Derivatives on stocks and indices
Securities lending (BTC)
Derivatives Future contracts and options on interest rate futures, FX, inflation
indices, stock indices and agricultural, energy and metal commodities
OTC Derivatives (swaps and options)
FX Spot foreign exchange
Securities Government bonds (spot and repos)
BVMFs current post-trade infrastructure results from historical BOVESPA and BM&Fdevelopments and from the merger between the two exchanges
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Organization of the post-trade environment by types of assets/products
4 rulebooks and4 manualswith distinct operationalprocedures.
4 participant structureswith distinct operating andcapital requirements andeligibility criteria.
4 systems / processesfor transfers, for theallocation of trades andfor the management ofopen positions.
4 systems / processes forrisk management that donot consider all the effects ofrisk netting between thevarious products and assets,including those pledged ascollateral.
4 pools of collateral that do notcommunicate, preventing the
full use of pledged collateral.
4 settlement windows and4multilateral balances that arenot netted, demanding higherintraday liquidity fromparticipants and greaternumber of payment
transactions.
4 distinct environments / ITarchitectures which generatehigher operational risk, requireconstant maintenance efforts,and have an impact on productand feature launch deadlines,and on the deadlines for meetingregulatory demands.
4 registration systems forparticipants and customers.
Post-trade IntegrationProject to integrate the clearinghouses
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Government
bonds
Corporate fixed
income
Interbank spot
foreign exchange
Futures, options,
forwards
Securities lending
OTC
derivatives
Other products
and assets
Equities, ETFs,
BDRs
Organization of thepost-tradeenvironment byprocess instead ofproduct type
Rationalization andstandardization ofrules, procedures,
requirements anddocumentation
Establishment of asingle settlementwindow for allmarkets
Development of an
integrated risk modeland single pool ofcollateral
Completemodernization andsimplification of thetechnological
infrastructure
Integration of the clearinghouses
Rules and Manuals
Structure of market participants
Participants and customer registration
Allocation and transfer
Position control
Clearing and settlement
Risk management
Pool of collateral
Post-trade IntegrationProject to integrate the clearinghouses
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More efficiency in capital allocation
Integrated Risk Calculation System - CORE (CloseOut Risk Evaluation);
Integrated portfolio risk calculation, encompassing traded assets and derivatives, including OTCcontracts, as well as pledged collateral;
Integrated and robust modeling of market, liquidityand cash flow risks for the differentassets/derivatives/collateral in the portfolio;
Risk netting between the various assets and contracts that has similar risk factors:
Examples:
Futures versus options;
Futures versus swaps;
Options with different maturity dates;
Short position in BTC versus equities deposited as collateral;
Short position in equity options versus equities deposited as collateral;
CORE has the potential to become the new international benchmark in terms of risk managementin CCPs
Key Benefits for the Market
Post-trade IntegrationKey benefits
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RTC System
(Real Time Clearing)Participant
and Account
Registration
Pricing
Instruments
registration
Fees
Settlement
SPB and CSD
CORE
Collateral
Management
Taxation
Risk
Management
Calculation of financial
values for settlement
Capture and registration
Allocation and Give-Up
Positioning
Interfaces with other
systemsInformation
Services
Mark-to-market
New processes and systems architecture
Post-trade IntegrationNew system infrastructure
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Post-trade IntegrationBVMF proposal for IPN certification
Certification phases
iCADX Official Certification Phase 1: Connectivity with the iCADX certification environment
Phase 2: iCADX screens
IPN Free Certification
Phase 3: Connectivity with the IPN/CORE certification environment
Phase 4: Allocation, give-up and position consultation screens
Phase 5: Position control and settlement screens
Phase 6: iCADX, price and instrument messages and files
Phase 7: Allocation, give-up, position consultation, and settlement messages and files
Phase 8: Collateral screens and messages
Phase 9: Risk management and position transfer calculation and functions
Phase 10: Fee and tax files and messages
Phase 11: Integrated settlement and risk processes
IPN Official Certification
Phase 12: Monitored execution of the integrated processes scripts
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Post-trade IntegrationBVMF proposal for IPN certification
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JointDevelopment
Over 1.4 MMhours invested
Knowledge
Transfer
New technology,
New Processes
Extensive
Testing
Market LegacyCompatibility
SeamlessTransition
BM&FBOVESPA IT DevelopmentsBuilding a world-class IT platform
PUMA Trading System is a state-of-the-art system deployed in the derivatives market in2H11 and in the equities market in April 2013
Focus
Commitment
Project Management
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BM&FBOVESPA IT DevelopmentsBuilding a world-class IT platform
New Control Center room: redesigned processes,
time-to-market solving problems (marketsurveillance and trading support together) andquality services for clients
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BM&FBOVESPA IT DevelopmentsBuilding a world-class IT platform
What does PUMA add to BVMF and the market?
Performance and Capacity
Supporting the growthof the Brazilian market
Attraction of new global
players (HFTs) Allows the expansion of
market-makerprograms
Multi-asset / market
Delivering synergies formarket participants andinvestors
Leverage BVMFscapacity to offer newand complementaryproducts / markets
Features
Fully adapted to thecharacteristics of theBrazilian market
Automation of processand controls
Meets the needs ofdifferent marketparticipants /clients
Availability and Controls
More stability andavailability to themarket
Price discovering rules(auctions)
Price variation limits(dynamic / static)
& l
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BM&FBOVESPA IT DevelopmentsBuilding a world-class IT platform
Increasing competitive differentiation for derivative andcash equity markets
Latency
BM&F Segment (derivatives) BOVESPA Segment (equities)
70
2520
10-15~1 ~1
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BM&FBOVESPA IT DevelopmentsBuilding a world-class IT platform
PUMA Trading Systemnumber of trades in BOVESPA Segment (equities)
PUMA Trading Systemnumber of trades in BM&F Segment (derivatives)
-
50.000
100.000
150.000
200.000
jan-10 abr-10 jul-10 out-10 jan-11 abr-11 jul-11 out-11 jan-12 abr-12 jul-12 out-12 jan-13 abr-13
# of trds # of trds - tranch1 USDP # of trds - tranch II (USDP + AGRO)
# of trds - tranch III (USDP + AGRO + FINA) # of trds - PUMA Last 22 days average
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13
# of trds - MegaBolsa # of trds - tranch I # of trds - tranch II # of trds - PUMA Last 22 days average
BM&FBOVESPA IT D l
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BM&FBOVESPA IT DevelopmentsData Center
BM&FBOVESPAClients
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APPENDIX
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Source: Ministry of Labor and Employment, IBGE , Valor 1000 and STRATUS research.
Number of companies by size
Segment to be developed
with a strong presence and
focus on EDUCATIONAL
MEDIUM and LONG TERM.
3 thd
Between
15 and 20 thd
More than 3
million
Valor Econmico Magazine, The Thousand Largest Companies
701 companies not listed, with net revenue of R $553 bn
More than a thousand employees
Annual revenues over R$400 mn
250-1,000 employees
Annual revenues over R$20-400 mn
Up to 250 employees
Annual revenues below R$20 mn
Brazilian companies that have not yet
accessed the capital markets have higher
revenues than in other countries with an
alternative investment market. This is our
initial focus SHORT TERM.
Brazilian Market Opportunities
1Q13 s 1Q12 Hi hli hts
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Total revenue:R$580.6 million+3.6%
Bovespa seg.: R$256.2 million, -2.8%
BM&F seg. R$221.8 million, +10.0%
Negatively impacted by fewer business days
Net revenue:R$521.0 million, +3.6%
Adjusted expenses:R$124.0 million, -1.1%
Operating income: R$348.2 million, +3.4%
EBITDA: R$412.4 million,+4.1% (EBITDA margin of79.2% in 1Q13)
Adjusted net income:R$394.6 million, -3.6%
Adjusted EPS:R$0.204,-3.8%
Payout:R$213.6 million in 1Q13, R$0.111 per share(80% of GAAP net income)
Bovespa segment:
ADTV: +5.0%
Margin: -3.4%
BM&F segment:
ADV: +11.5%
RPC: +3.4%
High growth products
Securities Lending: record of average open interestpositions (R$44.7 billion); +31.5%
Tesouro Direto: +24.5% of assets under custody
FIIs (real estate funds): strong growth of volumes (R$38.8million in 1Q13) and number of investors (102.7 thousand)
LCA (agribusiness credit bills): consistent increase of averageassets under custody (R$40.0 billion)
MAIN PROJECTS AND HIGHLIGHTS
1Q13 vs. 1Q12 HighlightsVolumes growth and strict cost control
FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS
1Excludes stock options plan, depreciation, provisions and tax on dividends from CME Group.2Excludes deferred liability recognized in correlation with temporary differences from amortization
of goodwill for tax purposes, the impact of the stock options plan, the investment in associate (CME
Group) accounted under the equity method of accounting, net of taxes related to dividends andtaxes paid overseas to be compensated.
3IPN/CORE implementation requires the authorization of the regulators.
PUMA Trading System:equities module deployed in Apr13
Clearinghouses Integration:tests starting in Jul13
OTC Platform:certification process for registration of NDFs startedin 1Q13
Pricing:changes in pricing policy of cash equities announced onMarch 05, 2013
Public Offerings:resumption of shares public offerings exceedingR$15 billion from January to Apr13.
BOVESPA Segment Performance
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1Q13 vs. 1Q12: + 5.0%
12.3% increase of foreign investors ADTV, due tovolatility and high frequency trades (HFTs)
Turnover velocity growth hit 71.7%
1Q13 vs. 1Q12: -3.4%
Decrease in the options margin (market maker) andderivatives participation in the total volume
TRADING MARGIN (in basis point - bps)
Market 1Q13 1Q12
Cash market 5.352 5.333
Derivatives on single stocks 13.141 14.290
Forward 12.999 13.020
Options 13.196 14.673
Total BOVESPA 5.706 5.909
AVERAGE DAILY TRADING VALUE (ADTV)
BOVESPA Segment PerformanceSolid volumes level and turnover velocity growth
ADTV BY GROUP OF INVESTORS
AVERAGE MARKET CAP. AND TURNOVER VELOCITY
(in R$ billions)
BM&F Segment Performance
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0.4 0.3 0.20.6
0.3
1.3
(78%)
1.9
(86%) 1.6
( 90%)
1.4
(71%)1.8
(84%)
1.7
2.3
1.81.9 2.1
1Q12 2Q12 3Q12 4Q12 1Q13
1st-3rd Maturity 4th-5th Maturity
1Q13 vs. 1Q12
ADV:+11.5%, reflecting 22.2% increase in the ADV ofBrazilian real-denominated interest rate contracts
RPC:+3.4%, due to:
Brazilian real-denominated interest rate contractstrading in longer maturities
Appreciation of the FX rate (US$/R$) - FX and US$interest rate contracts
Decrease of HFTs participation in the ADV
29
INTEREST RATE IN R$ CONTRACTS TOTAL REVENUE
(Revenue in R$ millions)
AVERAGE DAILY VOLUME (ADV) AND RPC (R$)
BM&F Segment PerformanceHigh growth of interest rate in R$ contracts
ADV AND RPC EVOLUTION
INTEREST RATES IN R$ - VOLUMES BY MATURITY
(ADV in millions of contracts and RPC in R$)
(ADV in millions of contracts)
Revenue Breakdown in 1Q13
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38.2%: Financial/Commodity Derivatives
39.2%: Cash Equities9.1%: Trading
30.1%: Post-Trading
4.9%: Derivatives on Stocks and Indices
Total RevenueR$580.6 million
4.7%: Depository, Custody and Back-Office
4.2%: Securities Lending
2.9%: Vendors
2.3%: Trading Access (Brokers)
2.0%: Listing
1.6%: Others
17.7%: Other Revenues
30
Revenue Breakdown in 1Q13Diversified revenue sources as a differential
REVENUE BREAKDOWN
Revenue breakdown for cash equities (trade + post-trade) do not reflect the pricing policy changes announced in
Mar-13, into effect only In Apr-13:
i) Reduction of trading fees to 0.5 bps from 0.7 bps for all investors
ii) Post-trade fees increase to 2.0 bps from 1.8 bps for institutional investors and day traders
9.1%
30.1%
4.9%38.2%
17.7%
1Q13 Expenses
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3131
Expenses:
R$172.8
million
ADJUSTED EXPENSES (1Q13 vs. 1Q12): -1.1%
Adjusted Personnel: +5.7%, , basically due to theeffects of annual union bargain in Aug12
Data processing: -7.1%, due to expenses reductionwith IT outsourcing and lower maintenance costs withlegacy platforms
Marketing: repriorization of marketing campaigns
31
1Q13 ExpensesFocus on cost control and operational efficiency
ADJUSTED EXPENSESTOTAL EXPENSES BREAKDOWN
(in R$ millions)
*Include expenses with maintenance in general, taxes adjusted by the dividends from CME Group,
board and committee members compensation and others (excluding provisions).
125.4 124.0
4,0
(1.8)
1.0
(0.6)(2.2)
(1.8)
1Q12 Adj.
Exp.
Personnel Data proc. Third Party Commun. Marketing Others* 1Q13 Adj.
Exp.
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(in R$ millions) 1Q13 1Q12 Change1Q13/1Q12
4Q12 Change1Q13/4Q12
Net Income 521.0 502.8 3.6% 499.2 4.4%
Expenses (172.8) (166.2) 4.0% (256.0) -32.5%
Operating Income 348.2 336.7 3.4% 243.1 43.2%
Operating margin 66.8% 67.0% -12 bps 48.7% 1,812 bpsFinancial Income 37.1 65.5 -43.4% 43.1 -13.9%
EBT 422.5 439.7 -3.9% 318.4 32.7%
Net Income* 267.0 280.4 -4.8% 217.3 22.9%
Adjusted Net Income 394.6 409.2 -3.6% 379.4 4.0%
Adjusted EPS (in R$) 0.204 0.212 -3.8% 0.196 3.8%Adjusted Expenses (124.0) (125.4) -1.1% (174.2) -28.8%
Financial Statements Summary
SUMMARY OF INCOME STATEMENT (CONSOLIDATED)
* Attributable to BM&FBOVESPA shareholders.
Financial Highlights
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3333
1,207
1,443
1,166
1,191
1,041
383
340
343
346
348
354
363
390
350
440
1,714
1,979
2,100
1,964
2,341
3,658
4,125
3,999
3,851
4,169
1Q12
2Q12
3Q12
4Q12
1Q13
Market participants cash collateral and others*
Restricted funds
Subsidiaries**
Available funds
Net financial income was R$37.1 million, 43.4% drop
from 1Q13 Finance results fell 29.1%, reflecting lower interest
rates
Finance expenses increased 15.0%, mainly due to thedepreciation of R$ against US$
In 1Q13, investments amounted R$41.8 millionCapex budget ranges:
2013: between R$260290 million
2014: between R$170200 million
In May 09, the Board of Directors approved R$213.6million, comprising R$163.6 million in dividends andR$50.0 million in interest on capital
R$0.111 per share (80% of GAAP net income)
Payment on June 7, 2013 based on shareholders positionon May 21, 2013.
*Includes collaterals pledged by participants in the form of cash, receivables and rights in securities under custody, as well as payouts still undisbursed. **Includes third party collaterals and restricted funds at
BM&FBOVESPA Settlement Bank (Banco BM&FBOVESPA). 33
Cash position in 1Q13 hit R$2.3 billion, considering:
R$388.7 million in dividends related to the 2012,paid in Apr13
Resumption of the shares buyback program inApr13, when 3.1 million shares was purchased,totaling R$41.2 million
Financial HighlightsStrong cash position and high payout
(In R$ millions)
CASH AND FINANCIAL INVESTMENTS FINANCIAL RESULTS
CAPEX
PAYOUT
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Growth trend of Brazilian Real-denominated
interest rate contracts Institutional and foreign investors were the
groups with higher growth in trading thesecontracts, indicating greater sophistication andincreasing risk exposure
Trading in longer maturities contracts aregrowing faster
DERIVATIVES
EQUITIES
2.42
70.0%
2.372.33
64.2%63.8%
Avg. Mkt.Cap.
Turnover
Velocity
(ADTV in R$ bn, mkt. cap. in R$ tri, Ibovespa in points and turnover velocity in %)Volume growth to a level higher than R$7 billion,despite adverse market conditions
Low growth of market capitalization Average Ibovespa 13% below the 2010 level
Turnover Velocity above 70%
Foreign and institutional investors, HFTs andproducts development (ETFs, option andsecurities lending) driving the turnover velocityincrease
2.48
71.7%
34
(in thousands)
Growth History
ADVInterest Rate in R$ by type of investor
2819
5263
34
8587
43
116
81
46
82
110
56
80
Institutionals Foreigns Financial institutions
1Q09 1Q10 1Q11 1Q12 1Q13
6.5 6.5 7.3 7.5
67,25861,207 59,601 58,813
2
4
6
8
10
3 0 . 0 0 0
35.000
4 0 . 0 0 0
4 5 . 0 0 0
5 0 . 0 0 0
5 5 . 0 0 0
60.000
6 5 . 0 0 0
2010 2011 2012 1T13
ADTV (R$ billion) Ibovespa (Average)
High Growth Products
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12.720.5
30.2 31.944.7
2009 2010 2011 2012 2013*
0.9 1.53.7
14.6
38.8
2009 2010 2011 2012 2013*
2.93.9
6.1
9.0 9.8
2009 2010 2011 2012 2013*
48.873.4
ADTV before
Market Maker
ADTV after
Market Maker*
18.6 28.548.7
115.998.0
2009 2010 2011 2012 2013*
Securities LendingReal Estate Funds (FIIs)Options with Market Maker
(Average open interest for the period - in R$ billions)
Initiatives to develop and stimulate higher volumes in certain products
Performance shows that the initiatives are being well received by the market
Gross Revenue (1Q13): ~R$44.1 million (7.6% of total gross revenue)
ETFs Brazilian Treasury Direct - Tesouro Direto Agribusiness Credit Bills
(ADTV in R$ millions)
+50.6%
(ADTV in R$ millions)
(ADTV in R$ millions) (Custody in R$ billions)
High Growth ProductsGrowing sophistication of market participants
BM&FBOVESPA has a 65%market shareof the amount registered in the market(Mar-13).
CAGR(09-13):
+154.1%
CAGR (09-13):
+37.0%
CAGR (09-13):
+51.5%
CAGR (09-13):
+35.5%
*Updated to Mar. 31, 2013.
(Amount registered in R$ billions)
Financial Statements
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Financial StatementsBalance sheet summary (consolidated)
(in R$ millions) 3/31/2013 12/31/2012 (in R$ millions) 3/31/2013 12/31/2012
Current assets 4,011.7 3,536.3 Current liabilities 1,566.0 1,660.6
Cash and cash equivalents 32.8 43.6 Collateral for transactions 981.8 1,134.2
Financial investments 3,705.5 3,233.4 Others 584.3 526.4
Others 273.5 259.3 Non-current liabilities 3,203.1 3,072.6
Non-current assets 20,446.8 20,610.8 Foreign debt issues 1,224.3 1,242.2
Long-term receivables 659.2 808.9 Deferred Inc. Tax and Social Contrib. 1,878.6 1,739.6
Financial investments 430.8 573.6 Others 100.2 90.7
Others 228.4 235.2 Net equity 19,689.4 19,413.9
Investments 2,900.8 2,928.8 Capital stock 2,540.2 2,540.2
Property and equipment 355.0 361.0 Capital reserve 16,042.7 16,037.4
Intangible assets 16,531.9 16,512.2 Others 1,090.8 820.3
Goodwill 16,064.3 16,064.3 Minority shareholdings 15.7 16.0
Total Assets 24,458.5 24,147.1 Liabilities and Net Equity 24,458.5 24,147.1
LIABILITIES AND SH. EQUITYASSETS
Financial Statements
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Financial StatementsAdjusted net income and adjusted expenses reconciliation
(in R$ millions) 1Q13 1Q12 Change1Q13/1Q12
4Q12 Change1Q13/4Q12
Total Expenses 172.8 166.2 4.0% 256.0 -32.5%
Depreciation (27.1) (21.9) 23.6% (23.8) 14.0%
Stock options plan (7.9) (8.4) -6.1% (7.9) -0.6%
Tax on dividends from the CME Group (4.6) (9.8) -52.7% (18.2) -74.6%
Provisions (9.3) (0.7) 1,155.8% (31.9) -71.1%
Adjusted Expenses 124.0 125.4 -1.1% 174.2 -28.8%
(in R$ millions) 1Q13 1Q12 Change1Q13/1Q12
4Q12 Change1Q13/4Q12
Net Income* 267.0 280.4 -4.8% 217.3 22.9%
Stock options plan 7.9 8.4 -6.1% 7.9 -0.6%
Deferred Liabilities 138.9 134.8 3.1% 134.8 3.1%
Equity method investment (net of taxes) (32.5) (27.8) 17.2% (14.0) 132.9%
Recoverable taxes paid overseas 13.4 13.4 0.0% 15.2 -11.9%
Provisions - Health Plan (net of taxes) - - - 18.2 -Adjusted net income 394.6 409.2 -3.6% 379.4 4.0%
ADJUSTED NET INCOME RECONCILIATION
ADJUSTED EXPENSES RECONCILIATION
* Attributable to BM&FBOVESPA shareholders.
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