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March2013March2013
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ForwardLookingStatements
Thispresentationmaycontaincertainstatementsthatexpressthemanagementsexpectations,beliefsand
assumptionsaboutfutureeventsorresults.Suchstatementsarenothistoricalfact,beingbasedoncurrently
availablecompetitive,financialandeconomicdata,andoncurrentprojectionsabouttheindustriesBM&FBovespa
worksin.
Theverbsanticipate,believe,estimate,expect,forecast,plan,predict,project,targetandother
similarverbs
are
intended
to
identify
these
forward
looking
statements,
which
involve
risks
and
uncertainties
that
couldcauseactualresultstodiffermateriallyfromthoseprojectedinthispresentationanddonotguaranteeany
futureBM&FBovespaperformance.
Thefactorsthatmightaffectperformanceinclude,butarenotlimitedto:(i)marketacceptanceofBM&FBOVESPA
services;(ii)volatilityrelatedto(a)theBrazilianeconomyandsecuritiesmarketsand(b)thehighlycompetitive
industriesBM&FBovespaoperatesin;(iii)changesin(a)domesticandforeignlegislationandtaxationand(b)
governmentpoliciesrelatedtothefinancialandsecuritiesmarkets;(iv)increasingcompetitionfromnewentrants
totheBrazilianmarkets;(v)abilitytokeepupwithrapidchangesintechnologicalenvironment,includingthe
implementationofenhancedfunctionalitydemandedbyBM&FBovespacustomers;(vi)abilitytomaintainan
ongoingprocessforintroducingcompetitivenewproductsandservices,whilemaintainingthecompetitivenessof
existingones;(vii)abilitytoattractnewcustomersindomesticandforeignjurisdictions;(viii)abilitytoexpandthe
offerofBM&FBovespaproductsinforeignjurisdictions.
Allforward
looking
statements
in
this
presentation
are
based
on
information
and
data
available
as
of
the
date
they
weremade,andBM&FBovespaundertakesnoobligationtoupdatetheminlightofnewinformationorfuture
development.
Thispresentationdoesnotconstituteanoffertosellorthesolicitationofanoffertobuyanysecurities,norshall
therebeanysaleofsecuritieswheresuchofferorsalewouldbeunlawfulpriortoregistrationorqualification
underthesecuritieslaw.Noofferingshallbemadeexceptbymeansofaprospectusmeetingtherequirementsof
theBrazilian
Securities
Commission
CVM
Instruction
400
of
2003,
as
amended.
2
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BVMFSTOCKPRICE
Recent Per ormance
3
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BVMF3 Recentperformance
BVMF3YTD:4.2%IOFs
10/17
IbovespaYTD:5.8%.
Goodwill
11/30
R$13.01Competition
News01 05
R$13.10
Rumors
ReductionsofVolumesEstimatesbytheMarket Removalof
IOFonEquities12/01
R$10,54
ChangeofIOFonforeignexchange
transactions
aboutIOFExchangesMergers
02/08
R 11.18
BATs
02/15
R$11.43NewIOFon
06 14
Derivatives
07/26
R$9.55
DirectEdge11/21
R$10.11
0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 3 3
Oxera's ReportRelease
06/18
Aug1
Sep1
Oct1
Nov1
Dec1
Jan
Feb
1
Mar1
Apr1
May
Jun
Jul
Aug1
Sep1
Oct1
Nov1
Dec1
Jan
Feb
1
Mar1
Apr1
May
Jun
Jul
Aug1
Sep1
Oct1
Nov1
Dec1
Jan
Feb
1
BM&FBOVESPA IBOVESPA
Updateduntil02/28/2013. 4
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BRAZILIANMARKETOPPORTUNITIES
5
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EquityMarket(BOVESPASegment)LowpenetrationintheBrazilianmarket
Numberofcustodyaccounts(thousands) Pensionfundsportfolio
LowpenetrationofequityR$574billion
investorsportfolios
Stableandlowinterestrateenvironmentencourage
Equity
FixedIncomeandOthers
69.9%
moreexposure nequ t es
Recentgrowthinthenumberofretailinvestors,butstilllowcomparedtoother
R$168billion
30.1%
27.7%
72.3%
markets
ListedCompanies
2002 2011
Lownumberoflistedcompaniescomparedtoothercountries
Lack
ofimportant
economic
sectors
in
the
6,856
, , ,retail,ITandpharmaceutical,
Investmentcyclemaybringnewcompaniesandsectorstotheexchange
,
4,041 3,9723,481 3,200
2,7672,056 1,784
364
Source:ABRAPP,WFEandBM&FBOVESPA6
Currently,SMEsarenotabletoraisemoney
throughequity
easilyIndia USA China/HK Canada Japan Spain UK Australia Korea Brazil
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DerivativesMarket(BM&FSegment)Growthincreditlevelwillfavorvolumes
CredittoGDP TradeFlow(totalImports+ExportsinUSDbillions)
53.5%Mortgage 482
27.4%
TotalCredit
229 281371
281384
4.5%6.3%
InterestRateinBRLcontracts:growthincreditlevels,speciallyinfixedrates,supportincreasetheactivityof
Jan
01
Jul
01
Jan
02
Jul
02
Jan
03
Jul
03
Jan
04
Jul
04
Jan
05
Jul
05
Jan
06
Jul
06
Jan
07
Jul
07
Jan
08
Jul
08
Jan
09
Jul
09
Jan
10
Jul
10
Jan
11
Jul
11
Jan
12
Jul
12
2006 2007 2008 2009 2010 2011 2012
FXcontracts:growthintheamountofforeigntradingandchangeinthecultureofhedgingfromentrepreneurscan
pushup
volumes
in
this
group
of
contracts,
mainly
in
currencies
other
than
US$
Indexbasedcontracts:growthincashequitymarket,thelaunchinganddevelopmentofETFsandthegrowthofexposuretoequitybyinstitutionalinvestorscandrivethegrowthofthesecontracts
7
Commoditiescontracts:
cash
settled
contracts
and
the
change
in
the
behavior
of
farmers
that
are
becoming
more
sophisticated
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MAININITIATIVES
8
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HighGrowthProductsGrowingsophisticationofmarketparticipants
SecuritiesLendinRealEstateFunds FIIsO tionsMarket
Initiatives todevelop
and
incentivize
volume
growth
in
some
products;
Performanceshowsthattheinitiativesarebeingwellreceivedbythemarket.
(OpenInterest averagefortheperiod inR$
billions)
(ADTVinR$millions)
+49.8%
(ADTVinR$millions)
CAGR(09-13): +154.6% CAGR (09-13): +35.2%
48.8
73.1
20.530.2 31.9
42.539.1
ADTVbefore
MarketMaker
ADTVafter
MarketMaker*
.
2009 2010 2011 2012 2013*
. .3.7
.
2009 2010 2011 2012 2013*
ETFs Tesouro Direto AgribusinessCreditBill
(ADTVinR$millions) (Custody inR$billions)
62%ofAUMofmarketshareregistersareatBM&FBOVESPA(Dec12).
CAGR(0913):+50.5% CAGR(0913):+35.8%
(Volumeregistered inR$billions)
20.0
48.7
115.995.6
2.9 3.96.1
9.0 9.9
.
2011 2012
18.6 .
2009 2010 2011 2012 2013* 2009 2010 2011 2012 2013*
*YDT2013 Updateduntil02/28/2013,exceptTesouroDireto(until01/31/2013). 9
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StrategicProjects
Multiasset
trading
platform
(PUMA
Trading
System)
Stateoftheartintradingtechnologyandtechnologicalindependency
Derivativesmodulesuccessfullyimplementedin2H11
LicensingTRADExpress RealTimeClearingsystem
Equitiesmarkettobeconcludedin1Q13
Objective:integratingandmodernizingourexistingclearingfacilitiesshouldproceedover2013.
Integrated tests with the market and implementation of the systems scheduled to take place in 2013/2014
Partnership advantages:
cense o use e so ware
Access to the source code
Selling rights over our new clearing platform
RegistrationsystemsforOTCderivatives
Objective: modernize,improveandexpandtherangeofourregistrationservicesforOTC
derivatives,while
offering
our
customers
a
streamlined,
quality
solution
and
thorough
Oneofthemostflexibleandcompleteenginesforregistration,pricediscovery,riskassessment,captureandlifecycleprocessingofthesetransactions
Threemoduleimplementation:thefirstoneisscheduleto1H13,thesecondonefor2H13
10
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ClearingHouses IntegrationFurtherdifferentiationinBVMFposttrade
Equityandcorporate
*Derivatives
*FX Securities
Equity,ETFs and fixed
income cash market
Financialand
n
FXspotmarket
n
Cash market and
derivatives (options andforward)
Securities lending
(futures,options andforward)
OTCderivatives
(US$vs.R$)orwar mar e or
government bonds
INTEGRATEDCLEARINGHOUSE**
=
Capitalefficiency
*AggregateofpledgedcollateralsatourclearinghousestotaledR$176,481.9millionin12/31/2012.**IPN/COREimplementation requirestheauthorizationoftheregulators. 11
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MainProjectsDeliveriesmadeandprogrammed
INTENSEDELIVERY
PHASE
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 (...)
Migrationof
PUMATrading
(equities)
Fixedincometrading
platform
SecuritiesRegistration
Platform
OTCDerivativesPlatform(Calypso)
Newintegratedclearinghouse/CORE*
NewData
Center
Construction
Startofmigration to the
NewData
Center
Feestructureredesignand theintroductionofincentiveprograms(...) (...)
*IPN/COREimplementationrequirestheauthorizationoftheregulators.
Developmentofnewproducts/markets: ETFs,marketmakingprogramsfortheoptionsmarket;duallistings... ...
12
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BUSINESSMODELANDREGULATORY
FRAMEWORK
13
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PossibleCompetitionImportantconsiderations
EASINGREGULATION
IS
NOT
EXPECTED
Mainrequirements:pretradecontrols,selfregulatory(SRO),offexchangetradesarenotpermitted(internalizationofordersandOTC),CCPforstockstrading,posttradingatthebeneficialownerlevel
Competitioninotherexchangeswasintensifiedaftereasingregulation
THEEXCHANGE
FEES
(TRADING
AND
POST
TRADING)
ARE
PAID
BY
THE
FINAL
INVESTOR
DifferentlyfromUSAandEurope,thefinalinvestorsistheonewhopaystheexchangefees
Brokerscouldntincreasetheirshareintheallintradingcostpieincaseofreductionontheexchangefees
STOCKSTRADINGALLINCOSTINBVMFISCOMPETITIVE
Comparingonlythetradingfeesamongexchangesismisleading.BVMFprovideshigherportionofservicesthanthepeers
,
ITINFRASTRUCTUREMOVINGTOSTATEOFTHEART
IncreasingparticipationofHFTviaColocation(movingtosubmillisecondlatency)
RECENT BM&FBOVESPA INITIATIVES REBALANCING OF FEES STRUCTURE
Shiftbetweentradingandposttradingfees
14
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PanelsponsoredbyCVMMainpoints
OnJune
29,
CVM
sponsored
adiscussion
with
stakeholders
Regulator:thestudyshowsthatcompetitioninexchangeindustryisnoturgent
Participantsview
9Regulator:marketintegrityandtransparencyarepriorities
9Brokers: mostofthemhavedoubtsaboutthebenefitsandshowedconcernsrelatedtocostrisingforthemandrisksforthemarket
9 Investors: ingeneralhaveaperceptionthatpricesareinlinewithinternationalbenchmarksandareconcernedwithmarketintegrity
9Infrastructure
providers
(exchanges):
non
consensus
regarding
the
necessity
of
opening
the
clearing
houseornotinordertocreatetheconditionsforcompetition
BVMFsmainconsiderations:
9UnderstatesregulatoryandIT/infrastructurecostforbrokers
9Disregardsimplicit
costs
of
liquidity
fragmentation
and
does
not
assess
qualitatively
the
price
formationimpacts
9ComparesinadequatelytheothermarketcostswhenitdoesnotusetheAllincost
9Marketsizeisnotbigenoughtoembracenewexchanges
9Recognizestheimportanceofclearinghousesintegration
15
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EquityMarketSettlementStructureBrazilComparedtoUSA
BRAZIL(Allthetrades mustbematchedonan
exchangeenvironment)
USA(Brokerscaninternalizeorders)
BVMFTrading
TradingVenues
DTCCBVMF
Brokers
AandB
Brokers
AandB
Broker
ABroker
B
Clearing(CCP)Settlement
Central
Depository
Investors InvestorsInvestors Investors
100%verticallyintegrated:clearing,settlement andcentraldepositoryatthebeneficialownerlevel
Brokerscontroltheirclientsportfoliosandsettle
DTCCdoestheclearing,settlement andcentraldepositoryofsecuritiesatthebrokerslevel
Eachbroker(primebroker)hasitsownstructuretopositionsthroughBVMFsinfrastructure (this
impactstheposttradefeeschargedbyBVMF)controltheirclientsportfoliosandsettlepositions
(thisimpact theprimebrokerscosts)
16
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BusinessModel
ste xc ange us ness o e
DiversifiedandIntegrated IntegratedDerivatives DiversifiedbutNotIntegrated*
*Donotprovideposttradingservicesfortheequitymarket
MarketCapitalization
(US$
billions)
and
Operating
Margin
(%)
3rd
largest
exchange70.7%
58.1%63.0%
56.6% 60.7% 56.2%
72.4%
53.5%
41.5%
66.6%
20.7 19.913.5 12.0 11.2 9.1 6.6 6.5 5.5 5.2 2.9
2.2
26.2%.
HKEx CME BVMF Deutsche ICE NyseEuronext SGX ASX LSE Nasdaq TMX BME
12MtoJun.30,2012.12MtoMar.31,2012.9MtoSep.30,2012.Source:Bloomberg(02/28/2013).17
Boerse
Oper.Margin(2012)Diversified andintegrated Integrated(Derivatives) Diversified butnot integrated
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BrazilianMarketRegulatoryFrameworkLegalrequirements:resilience,transparence,clearrules.
Brokers&
investors Regulationprohibits internalizationoforders,darkpoolsandATS/MTFs,stockstradinginbothexchangeandOTCsimultaneously
Settlement
and
clearing
of
stocks
trading
must
be
done
SettlementandclearingatthebeneficialownerlevelmaketheBrazilianmarketsaferandmoreresilient
Trading Underthe
regulation
in
place,
potential
competitors
wouldbeobligedtoprovidethesameintegrated
solution with the same rules and trans arenc
Pos
Trading
Thefinalinvestorpaystheexchangefee
Otherexchan es
have
been
seekin
inte rated
models
(selfclearingmodels)
Nakedaccessisnotallowed
Nakedshortsellingisnotpossible
18
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EndofCPMF
Braziliansstocktradingbreakdown
(Financial
TransactionTax)
SarbanesOxleyAct
(Jul.2002)
NovoMercado
Launching
(Dec.2000)
EndofIOFTax(2%)for
foreigninvestors
(Dec.2011)
25.2%
e
33.1%
37.7%
.
29.2%
66.9%
6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 2 2 2 2 2 2 2 2 2 2 2 3 3
Source:Bloomberg(inUSDtradedvalueof35companieswithADRsprograms)
199
199
199
199
200
200
200
200
200
200
200
200
200
200
201
201
Jan
1
Feb
1
Mar1
Apr1
May
1
Jun
1
Jul1
Aug
1
Sep
1
Oct1
Nov
1
Dec
1
Jan
1
Feb
1
OtherUSA Venues BrazilianADRs NYSE BrazilianADRsBM&FBOVESPA companieswithADRs BM&FBOVESPA(exceptcompanieswithADRs)
u u
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total
IPOs 1 7 9 26 64 4 6 11 11 3 1 143Followons 14 5 8 8 10 16 12 8 18 11 11 9 1 131
*Updateduntil02/08/2013. 19
DualListings
2
1
1
1
5
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OPERATIONALHIGHLIGHTS
20
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BOVESPASegment:operationalhighlights
v y u
Averageannualmarketcap(R$trillion) TurnoverVelocity**(12monthsaverage)
*Updateduntil02/28/2013.**Relationofthetradingvalueinthecashmarketandthemarketcapoftheexchange. 21
*
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BOVESPASegment:capitalraisingactivity
Updateduntil02/28/2013.
PublicOfferings
(BRL
billions)
55.6
11.2
30.4
70.1
34.346.0
74.4o ow n
IPO
4.3 8.5 15.1 14.526.8
22.2
63.2
10.8 9.3 0.84.55.4 15.4
7.5 .
7.2 3.9
0.58.8
13.9 18.0 13.21.3
2004 2005 2006 2007 2008 2009 2010* 2011 2012 2013
Pipeline:alreadyannouncedtothemarket
Thereare8offeringsinthepipeline:
IPO(6):AutoBrasil Participaes;Cia.EstadualdeguasEsgotos CEDAE;BioServ;Smiles;BBSeguridadeParticipaes;Alupar Investimento
22
Followons (2):Tupy;Multiplan
Additionaly,there are
16
Real
Estate Funds filed in
CVM:
estimated value of R$3.4
billion
* Excludes the capitalization with barrels reserves by federal government BRL74.8 billion in Petrobras offering. 22
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*
BOVESPASegmentPotentialtoincreasethenumberoflistedcompanies
177%
136%129%
174%
137%
158%
138%129%
2009 2010 2011
HongKong: 438% 481% 365%
109%100%
67%75%
87%
72%
100%
119%107%
75% 76%
96%
72%80%
44%
110% 109% 104%
89% 87%
60% 57% 55% 50% 49% 46%39%
35%
Singapore Canada Chile USA Korea Australia Japan France India Brazil UK China Mexico
Market Ca italization b Economic Sector*Source:WorldBank
11.2%15.7%
22.4%
Dec05 Dec12
14.3%
2.2%
8.8%
26.8%
21.6%11.5%
.
20.4%
5.4%
0.4%5.5%
2.5%
3.6%
8.6%
0.3%11.1%
23
Oil,GasandBiofuels BasicMaterials CapitalGoodsandServices Construction andTransportationConsumer NonCyclical Consumer Cyclical Information Technology Telecommunications PublicUtilities Financial
.
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BM&FSegment:operationalhighlights
verage a y ra e o ume ousan so con rac s
59 3 494205 24 5 126
285308
38 5
3412,5052,701
2,899 2,955 2,497
2,994
3,5183,904
2,590 2,819 2,630 2,626 2,971 2,653 2,856 2 410
3,591
422 501 711988 78 9 843
1,684 1,797 1,9262,054
1,4522,061
2,497 2,681
1,561 1,866 1,723 1,7102,199
1,747 1,856 1,561
2,630
110 168266
47353 5 447
541 496494 483
545
524
520485
425 451
327476 54 7
474
86 74 68
112 88 80
89 123143 104
166
123
158106
137 111123
99 11 3
84
187 109124
167 16 2 150
191 285 334 350362
345 355 331290
805 8521,167
1,7401,5731,521
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* Feb12 Mar12 Apr12 May12 Jun1 2 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13 Feb13
BRLInt.Rate(Thousands) FX(Thousands) Index(Thousands) Others(Thousands)
a eper on rac
2006 2007 2008 2009 2010 2011 2012 2013* F12 M12 A12 M12 J12 J12 A12 S12 O12 N12 D12 J13 F13
InterestratesinBRL 0.906 0.950 1.141 0.979 0.889 0.918 1.004 1.021 1.064 0.926 0.948 0.922 1.059 1.026 1.076 1.130 0.924 1.044 1.037 1.032 1.013
. . . . . . . . . . . . . . . . . . . . .
StockIndices 1.419 1.501 2.145 1.620 1.564 1.614 1.524 1.787 1.674 1.328 1.502 1.233 1.708 1.403 1.750 1.407 1.752 1.400 1.981 1.547 1.974
InterestratesinUSD 1.094 0.965 1.283 1.357 1.142 0.941 1.015 1.106 0.804 0.911 0.991 1.021 0.955 1.143 1.027 1.086 1.024 1.164 1.152 1.073 1.140
Commodities 4.749 3.195 3.587 2.307 2.168 2.029 2.239 2.433 2.033 2.183 2.228 1.945 2.099 2.014 2.270 2.840 2.680 2.485 3.360 2.449 2.415
Minicontracts 0.034 0.054 0.162 0.176 0.128 0.129 0.116 0.121 0.130 0.130 0.122 0.113 0.116 0.111 0.110 0.109 0.112 0.107 0.112 0.120 0.122
24
OTC 1.571 2.111 2.355 1.655 1.610 1.635 1.769 2.339 1.515 1.822 1.880 1.203 1.321 1.523 2.693 1.139 1.738 1.711 2.475 1.988 2.868
TotalRPC 1.247 1.224 1.527 1.365 1.134 1.106 1.191 1.224 1.227 1.079 1.100 1.074 1.272 1.222 1.277 1.314 1.098 1.242 1.303 1.266 1.191
Updateduntil
02/28/2013.
I t t R t i BRL C t t
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InterestRateinBRLContractsStructuralchangesbehindthegrowthinvolumes
BRLINT.
RATE:
ADV
PER
MATURITY
(MILLIONS
OF
CONTRACTS)
CAGR:+3%Growthininterestratecontracts
1.661.81 1.77
CAGR:+32%
0.910.93
1.35
0.72 0.76
CAGR: 21%
0.28 0.38
0.57
0.51 . 0.77.
2008 2009 2010 2011 2012
FixedRateCredit inBRLbillions PublicDebt/FixedRate inBRLbillions
1st4thMaturity 5thMaturity Total
Dec'12:
BRL850.9Dec'12:
BRL 789.3bn
Jan'05:
BRL180.0
Jan'05:
BRL 151.4bn
25Source:Brazilian CentralBank.
Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12
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HighFrequencyTrading(HFT)
BM&FSegment:
HFT
(ADTV
in
thousands
of
contracts)
and
mkt.
share
8.7% 8.5% 8.9% 9.1%
162 155 14488
66
61
50 50 4959 73
62 56 63 56 58 46
191
31
222 233 239274
239 300
481 474419
343268
288
417
528
403442
365 347 358
317
283
339
304 237 284
4.2% 3.9% 3.6%6.7%
5.4%. . 6.6% 6.9% 5.8% 5.9% 5.8%
. 6.4% . 6.3%5.0%
6.7% 5.6% 5.2% 4.1%
90 93 90 102 92 113203 219 177 142 120 131 146 128 163
225 186 202 223 201 197 227 204 156 18765 71 82
118 101126 124 85 88
141 159150 116 89 61 31 55
4450
51 50 4945 42 42 41 37
BovespaSegment:HFT (ADVinBRLmillion)andmkt.share
Mini FX Equities Other %overallvolume
380
278
230
205
164 166 387 420 365
1,683
1,2961,460
1,339
1,145
1 088
1,367
1,160
1,3661,517 1,473
1,268
1,3321,526
1,363 1,3441,517 1,489
1,580
6.6% 5.9% 5.9%8.7% 7.6% 8.6%
. 10.4% 10.3%.
9.3% 8.7% 8.4% 8.4% 9.0%10.3%
8.8%10.3% 10.0% 9.1% 10.2% 10.1% 9.4% 10.1% 10.0%
352 344 321511 495 561
1.0991,099
1.016 1,016 826 785995 854
1.0701,070 1,238
1,243 1,041 1,0691,016 831 884 783 897
346 261 254
293 253 262
311281
259210 303 306
227 265
212 243246
285318
272140 210
192152 151
110 963
746 785 899 974
26
ADTV(Foreigners) ADTV(Individuals) ADTV(Institutionals) %ofoverallmarket
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FINANCIALHIGHLIGHTS
27
4Q12 4Q11 Hi hli ht
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4Q12vs.4Q11HighlightsVolumesgrowthandstrictcostcontrol
FINANCIAL HIGHLIGHTS OPERATIONALHIGHLIGHTS
Gross Revenue: R$544.1 million, +4.2%
BOVESPA Se .: R 238.5 million +6.6%
BOVESPASegment:
ADTV:+9.4%
BM&F Seg.: R$205.3 million, +15.9%
Net Revenue: R$499.2 million, +5.9%
Margin:stable
BM&FSegment:
ADV: +15.4%
Adjusted Expenses: R$174.2 million, +6.3%
2012:R$563.5million(closetothelowrangeofthe
RPC: +4.1%
Highgrowthproducts
ETFs:+61.9%inaveragedailyvalue
Operating Income: R$243.1 million, +35.4%
Tesouro Direto:+38.6%ofassetsundercustody
FIIs:strong
growth
of
volumes
(R$29.0
million in
4Q12)andnumberofinvestors(97.1thousand)
LCA:consistentgrowthofassetsundercustody
Adj. Net Income: R$379.4 million, +7.6%
Adjusted EPS: R$0.196, +7.4%
(R$36.5billion)
2012/2013MAINPROJECTS
Clearinghouses Integration
3
: presentation of IPN to market
Payout: recommendationofadistributionofR$388.7millionin4Q12,totalingR$1,074.3million
PUMA Trading System: progress in delivering the equities module
OTC Platform: certification phase with market participant
Pricing Structure: studies regarding pricing differentiation andincentive programs
. income) New Data Center: construction started
1 Excludes stock options plan, depreciation, provisions, tax on dividends from CME Group and the guarantee fund transferred to BSM. 2 Excludes deferred liability recognized in correlation with temporary differencesfrom 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,taxes paid overseas to be compensated, the guarantee fund transferred to BSM in 4Q11 and provision related to health care insurance net of taxes in 4Q12. 3IPN/CORE implementation requires the authorization ofthe regulators. 28
Revenue Breakdown in 4Q12
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RevenueBreakdownin4Q12Diversifiedrevenuesourcesasadifferential
REVENUEBREAKDOWN
37.6%:CashEquities
8.7%:Trading
28.9%:
Post
Trading
37.0%:Financial/CommodityDerivatives
4.8%:Derivatives on Stocksand Indices
5.1%:Depository,CustodyandBackOffice
3.4%:SecuritiesLendin
Gross Revenue:R$544.1 mill ion
20.6%:Other
Revenues
3.0%:Vendors
2.5%:TradingAccess(Brokers)
2.0%:Listing
29
Financial Highlights
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FinancialHighlightsStrongcashpositionandhighpayout
FINANCIALINCOMEADJUSTED
NET
INCOME
(4Q12)
FinancialResultsofR$43.1million,fallof32.7%over4Q11
+7.6%(inR$millions)
FinancialIncomedecreased 23.8%,reflectinglowerinterestrates
Financial
Expenses
had
a
slightly increase
of
1.8%
INVESTMENTS
InvestmentsofR$134.2millionin4Q12
In2012 investmentstotaledR 258.4million withintheCredits from interest on shareholders equity of R$90 milliondeliberated in Nov12 decreased tax charges.
CASHAND
FINANCIAL
INVESTMENTS
budgetrangepreviouslyannounced(R$230 260million)
InvestmentBudgets:
2013:betweenR$260 290million(inR$millions)
2014:betweenR$170 200million
PAYOUT
.
,
,
R$388.7millionindividendstobepaidinApr. 30,2013.
Thepayoutin2012totaledR$1,074.3million,theequivalenttoR$0.5565pershareand100%ofGAAPnet
.
*Includesexpenseswithdepreciationandprovisions.**Includescollateralspledgedbyparticipantsintheformofcash,receivablesandrightsinsecuritiesundercustody,aswellaspayoutsstillundisbursed.***IncludesthirdpartycollateralsandrestrictedfundsatBM&FSettlementBank(BancoBM&F). 30
Cash flow: return to shareholders
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Cashflow:returntoshareholders
CASHFLOW/
USE
OF
CASH
FLOW
IndividualCompanyStatements
(in R$ millions) 2011 2012Var.
2012/2011
Net income 1,048
1,074
Adjustments non-cash items 469 570
Working capital variation 7 60
Operating cash flow 1,524 1,704 11.8%
Investments (net of asset sales) (210) (257)
Received dividends 33 124
Post-investment cash flow 1,347
1,572
16.7%
Dividends and interest on own capital 889 1,148
Interest / change in debt 69 76
Cash / financial investments variation(200) 356
Destination of cash flow 1,347 1,572
Does not consider variation in financial investments and collaterals.
31
4Q12 Expenses
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4Q12ExpensesFocusoncostcontrolandoperationalefficiency
ADJUSTEDEXPENSESTOTAL
EXPENSES
BREAKDOWN
(in R$ millions)
Expenses:
R$256.0
million
AdjustedExpenses: +6.3%vs. 4Q11
*
AdjustedPersonnel:+5.4%vs.4Q11,basicallyduetotheeffectsofannualunionbargaininAug12
DataProcessing: 12%vs.4Q11,duetoexpensesreduction
platforms
Marketing:repriorizationofMarketingactions
Others: reflects mainl the R 15 million transfer to BSMannouncedin3Q12
*Includes expenses with maintenance in general, taxes adjusted by the dividendsfrom CME Group, board and committee members compensation and others. 32
Other Expenses
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OtherExpensesExtraordinaryexpensesin4Q12
PROVISIONFOR
PERSONNEL TAXES
AND
CONTRIBUTIONS OTHERS:
TRANSFER
TO
BSM
+34.2%(inR$millions)(inR$millions) (inR$millions)
+5.4%
IncreaseofTaxonDividendsfromNoncashprovisionofR$27.5million
theCMEGroup:dividendsreceivedfromtheCMEGroupreachedR$60.7millionin4Q12,versusR$8.9millionin4Q11.
ocusons reng en ngmar e
integrity;
BSM(BM&FBOVESPAMarketSupervision)actsinmarketsurveillance
andself
regulation
of
all
markets
relatedtotheCompanyshealth plan;
Theprovisionisrelatedtothepotentialliabilitiesgeneratedbyindirectsubsidies(differencebetweentheaveragecostof
the lan ne otiated b the Com an andmanagedbyBVMF,pursuanttoCVMrule461/07;
TransferofR$15milliontoBSMpreviouslyannouncedwiththeearnings
theestimatedaveragecosttoindividuals);
Employeeswho contributedtotheplanbetween20022009 have therightto
resu tso an w t nt ea uste budgetfor2012;
Goal:Funding
of
BSMs
activities
over
2013.
theeventofseveranceorretirement,as
long
as
they
bear
the
insurance
costs;TheamountprovisionedfollowstheCPC33/IAS19 EmployeeBenefits. 33
ADJUSTED OPEX BUDGET
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ADJUSTEDOPEXBUDGET
2013Budget:R$560580million,thesamerangeof2012 Focusoncostcontrol: in2013,inflationar rowthwillbeneutralizedb hi her
efficiency
(inR$millions)
ExpensesCAGR(201013):1.6%pa
InflationCAGR(20102013)5.8%pa