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BM&FBOVESPA S.A announces earnings for the fourth quarter of 2009.
GAAP Net income reached R$220.2 million
with earnings per share of R$0.110, an 8.8% rise over pro forma net
income for the same period one year ago. Adjusted net income
(as adjusted by items with no impact on cash flow)
totaled R$315.3 million, with adjusted EPS of R$0.157.
GAAP Net income of R$220.2 million increased 8.8% year-on-year, whereas adjusted net income of R$315.3
million.
4Q09 net revenues of R$424.8 million increased 19.5% from the same quarter one year ago (pro forma). In a
comparison of the twelve months to December 2009, net revenues dropped 6.2% to R$1,502.5 million.
4Q09 operating expenses reached R$ 160.4 million, a 25.2% increase from 4Q08
1
(pro forma) and a 21.0%
increase from 3Q09's. In 2009, recurring expenses reached R$446.7 million, a 12.9% drop from 2008 (pro forma),
as adjusted by expenses related to employee compensation in 1Q09 (R$ 18 million) and in line with the target of
R$450.0 million for 2009.
EBITDA totaled R$276.4 million for the fourth quarter, up 17.3% from 4Q08 (pro forma),
and R$975.1 million for the twelve months to December 2009, a year-on-year drop of 10.5%. The EBITDA margin
decreased by 3.1 p.p., in a comparison of the quarters to December 2009 (64.9%) and December 2008 (68.0%) (In
2009 R$59.6 million were accounted related to the recognition of the Stock Options costs). The fourth quarter
2009 EBITDA was 5.5% compared to third quarter.
The Company announced a MoU with CME Group about global preferred strategic partnership involving
investments of R$620.0 million from BVMF to increase its stake to 5% in the north-american exchange
The board of directors proposed distributions of R$248 million as dividends related to 2009 and R$ 30 million as
Interest on Capital related to 2010.
FINANCIAL HIGHLIGHTS
GAAP Net income for 4Q09 amounted to R$220.2 million (EPS of R$0.110), an 8.8% rise from the quarter to
December 2008. In the twelve months to December 2009, GAAP net income totaled R$881.0 million.
4Q09 adjusted net income, of R$315.3 million, was down 6.5% from adjusted net income for the same period one
year ago.
4Q09 Adjusted net income - adjustments to quarterly net income amounted to R$95.1 million, composed
of two items with no impact on cash flow, meaning addition of R$79.6 million, which correlate with
1
The 2008 pro forma financial statements don't consider the integration costs of BM&F and Bovespa Holding, willing to
demonstrate the recurring results of the new Company. The adjusted (Pro Forma) financial statements from this period
exclude the amortization expense from the integration and its recurring tax effects, and the effects of the interest on
shareholders´equity.
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recognition of deferred liabilities related to amortization of goodwill, and of R$15.5 million in expenses with
the stock options plan. In 3Q09, these two items amounted to R$79.6 million and R$11.9 million,
respectively.
The 94.3% increase of the deferred tax between 3Q09 and 4Q09, to R$117.0 million from R$60.2 million, is
due mainly to the reversal of tax losses, generating a negative impact of R$32 million in 4Q09.
BRL Millions
4Q09
3Q09
2009
Adjusted Net Income
315.3
337.3
1,223.8
Adjustments
Deferred Tax Liabilities
79.6
79.6
318.6
Stock Options Plan
15.5
11.9
59.6
Recognition of Tax Losses
(35.5)
Corporate Net Income
220.2
245.8
881.1
* Net of taxes
Corporate EPS (BRL)
0.110
0.123
0.440
Adjusted EPS (BRL)
0.157
0.168
0.610
Net revenues for the fourth quarter of 2009 increased 19.5% year-on year, due primarily to the record volumes
traded on the Bovespa segment. In a comparison of the twelve months to December, net revenues were down
6.2% year-on-year, reflecting the volume drops in both the equities and the derivatives segments, particularly in
the first half of 2009.
4Q09 operating expenses totaled R$160.4 million, up 25.2% from R$ 128.1 million in 4Q08. In the twelve months to
December 2009, operating expenses amounted to R$569.8 million, up 4.6% from R$ 544.5 in comparison to the
previous year.
4Q09 Recurring Operating Expenses adjusted by the stock option plan, amortization and provision for doubtful
accounts, totaled R$133.7 million, up 11.5% in comparison to the same period for the previous year. In the twelve
months to December 2009, recurring expenses amounted to R$ 446.7 million, in line with budget target of R$ 450
million for 2009, 12.6% down from R$512.6 million in the same period in the year before.
The rise in operating expenses between 4Q08 and 4Q09 is due mainly to a 45.5% increase in personnel expenses
(including the stock option plan) and a 67.4% increase in third-party services. The rise in operating expenses
between 2009 and 2008 is due mainly to a 32.8% increase in personnel expenses and a 11.0% increase in third-
party services
EBITDA for the fourth quarter of 2009 totaled R$276.4 million (65% margin), up 17.3% from pro forma EBITDA of
R$235.6 million (66.3% margin) for the same period one year ago. In a year-on-year comparison of the twelve
months to December 2009, the EBITDA fell 10.5%, with the margin dropping to 64.9% from 68.0% one year earlier.
This drop was due to the smaller revenues in 2009, the recognition of R$ 59.6 million in stock options plan and the
expenses of R$ 18.0 million related to employee dismissals in 1Q09. Without taking into account the expenses
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related to the stock options plan and employee dismissal, the EBITDA would have reached R$1,052.7 million in
2009, down 3.4% when compared to 2008.
Summary of Income Statements
(in BRL Thousands)*
4Q09
4Q08
(Pro forma)
Variation
4Q09/4Q08
2009
2008
(Pro forma)
Variation
2009/2008
Net operating revenues
424,759
355,514
19.5
1,502,544
1,602,011
-6.2
Operating expenses
160,372
128,137
25.2
569,832
544,545
4.6
Interest income, net
74,104
83,100
-10.8
253,862
306,093
-17.1
Net income for the period
220,174
202,404
8.8
881,050
909,605
-3.1
Net Margin
51.8%
56.9%
58.6%
56.8%
EBITDA
276,399
235,589
17.3
975,108
1,089,408
-10.5
EBITDA Margin
65.1%
66.3%
64.9%
68.0%
Earnings per share
0.110
0.101
8.8
0.439
0.454
-3.1
Adjusted operating expenses
133,669
119,925
11.5
446,677
512,603
-12.9
Adjusted net income
315,313
202,404
55.8
1,223,763
909,605
34.5
Adjusted earnings per share
0.157
0.101
55.8
0.610
0.454
34.5
*except for earnings per share and adjusted earnings per share.
Q
UOTES ON THE
C
OMPANY
'
S
P
ERFORMANCE
"The year of 2009 was remarkable due to the record volumes in the BOVESPA segment, the major developments in
DMA and the greater participation of high-frequency investors" said Edemir Pinto, Chief Executive Officer. "In the
BOVESPA segment, we reached a record average financial volume of R$ 6.8 billion in 4Q09. In the BM&F segment,
due to the increase in the volume of orders routed via CME-Globex and the growing adherence to the co-location
service, trading via DMA accounted for 13.1% of the total volume in December of 2009, whereas trading by high-
frequency investors accounted for 4.2%. This happened as a result of the continuous investments we have made in
our trading environments." "In addition, we announced a MoU for a strategic partnership with CME Group that,
when in place, will raise BM&FBOVESPA to a new level in the global market and it will bring a wide range of
opportunities to the Company" added Edemir.
Carlos Kawall, Chief Financial and Investor Relations Officer, highlighted the rebound in public offerings in 2009,
with a volume of R$ 46.0 billion (second largest volume of capital raising in the history of the Brazilian capital
market, which shows how confident investors are in our market in the period after the financial crisis), the turnover
velocity, which climbed from 63.2% to 67.0% between 2008 and 2009 and the recurring expenses in 2009, which
reached R$446.7 million, in line with the budget of R$450.0 million stipulated for 2009.
OTHER FINANCIAL HIGHLIGHTS
Cash and cash equivalents: cash and cash equivalents (short- and long-term) at the end of the quarter to
December 2009 amounted to R$3.2 billion, comprised of third-party collaterals worth R$810.3 million,
deposited with our clearing centers, and R$ 504.9 million in own financial resources of restricted use for
being tied to our clearing structure.
Interest income, net: net interest income for the fourth quarter of 2009 was R$74.1 million, a 10.8% drop
when compared to 4Q08, primarily due to year-on-year decrease in financial revenues, to R$81.5 million in
4Q09 from R$95.9 million in 4Q08, which reflects cuts in the interest rates that remunerate financial
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investments. In the comparison of the twelve months to December 2009, net interest income declined 17.1%
from a year ago. It is worth remembering that in 4Q09 we earned R$11.3 million in the conversion of Cetip´s
equity securities in stocks. Financial expenses for the fourth quarter of 2009 tumbled 41.8%, to R$7.4 million
from R$12.8 million in the same period one year earlier, primarily due to financial charges on the loan we
repaid in November 2008.
Effects of the switch to IFRS: as a result of the 2008 change in Brazilian accounting principles and reporting
standards, which we adopted in line with standards set by the Brazilian Committee of Accounting Standards
(Comitê de Pronunciamentos Contábeis), or CPC, in the fourth quarter of 2009 we recognized expenses
amounting to R$15.5 million which correlate with adjustments to the stock options plan adopted by
BM&FBOVESPA, and a reversal of expenses with leasing arrangements in the amount of R$3.4 million.
Deferred liabilities: deferred liabilities are a result of deferral of R$79.6 million related to a transitory
adjustment of the tax benefit derived from amortization of goodwill in the quarter to December 2009, with
no impact on cash flow. Considering the 12 months ended December 30
th
, the amount of deferred liabilities
amounted R$ 318.6 million.
DISCUSSION AND ANALYSIS OF REVENUES AND EXPENSES
Gross revenues
Gross revenues for the quarter totaled R$473.9 million. As a percentage, revenues from trading and settlement in
the BM&F and the Bovespa segments equaled 83.7% of 4Q09 total gross revenues, as compared to 79.2% in the
same quarter one year ago. Gross revenues in 4Q09 were up 19.6% from the same period a year earlier. In the
twelve months to December 2009, gross revenues accumulated R$1,672.9 million, a 6.2% decline from the same
period in the year before.
16.3%
20.8%
27.6%
36.4%
56.0%
42.7%
R$473.9 MM
4Q09
R$396.4 MM
4Q08
Gross Revenues Breakdown - 4Q08 x 4Q09
Trd/Sttlmnt Bovespa Segment
Trd/Sttlmnt BM&F Segment
Other Revenues/Dividends
Source: BM&FBOVESPA
Without computing dividends paid to us by the CME in the relevant quarters, revenues unrelated to trading and
settlement activities reached R$72.7 million, or 15.3% of our total revenues for the fourth quarter of 2009, which is
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up 5.4% from R$69.0 million for the same quarter a year earlier, when it accounted for 17.4% of our total revenues
for the period. Our business lines unrelated to trading and settlement activities are:
Access fees by trading participants: revenues of R$9.9 million for the fourth quarter of 2009 accounted for
2.1% of total revenues, having climbed 38.8% as compared to R$7.1 million for the same quarter a year ago.
In the twelve months to December 2009 these revenues amounted to R$40.3 million, up 103.8% from the
same period a year earlier. This growth correlates primarily with our new access policy for participants in
both the BM&F and the Bovespa segments, implemented in January 2009;
Vendors: revenues for the fourth quarter of 2009 amounted to R$14.6 million, or 3.1% of total revenues, a
30.2% rise over the same period in the previous year. In the twelve months to December 2009 these
revenues reached R$57.7 million, a 33.1% surge from the same period one year earlier. This increase
correlates mainly with implementation of our new pricing policy started in April 2009.
Listing fees: 4Q09 revenues of R$10.0 million account for 2.1% of total revenues, and a 25.4% climb over the
same quarter a year ago. In the twelve months to December 2009 these revenues reached R$39.5 million,
soaring 32.8% from the same period one year earlier. This growth in revenues from listing fees is due mainly
to our new pricing policy for listing fees charged from issuers, and to the end of the period of gradual
discounts granted to companies listing securities to trade on our special listing segments;
Depository / Custody / Back Office revenues: 4Q09 revenues of R$21.2 million, or 4.5% of total revenues
were up 22.2% from R$17.3 million for the same quarter one year ago, showing the first effects of the new
pricing policy adopted by our depository center, the growth in the revenues from Tesouro Direto (treasury
direct) and the rise in market prices in the same period. In the twelve months to December 2009 these
revenues reached R$70.2 million, up 12.3% from the same period a year earlier;
Securities lending: 4Q09 revenues of R$10.5 million account for 2.2% of total revenues, and a 64.2% rise
when compared to R$6.4 million for the same quarter one year earlier. In the twelve months to December
2009 these revenues dropped 32.0% from the same period one year ago. Such reduction is related to the
volumes of trading in the BOVESPA segment and the performance of the market, particularly the changes in
the prices of stock traded on the spot market between 2008 and 2009. However, a sensitive recovery can
already be seen during the second semester of 2009, when revenues reached R$ 19.4 million, a 42.7%
increase when compared to the first semester.
Operating Expenses:
in BRL Thousands
1Q09
2Q09
3Q09
4Q09
2009
4Q08
2008
Recurring Expenses (Adjusted)
101,642
103,303
108,063
133,669
446,677
119,925
512,603
Severance expenses
18,000
-
-
-
18,000
-
-
(=) Expenses with impact on cash flow
119,642
103,303
108,063
133,669
464,677
119,925
512,603
Stock Options
18,758
13,446
11,936
15,494
59,634
-
-
Depreciation
8,951
9,887
11,546
12,012
42,396
8,212
31,942
Provision for doubtful accounts
1,409
1,562
957
(803)
3,125
-
-
(=) Total Expenses
148,760
128,198
132,502
160,372
569,832
128,137
544,545
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Recurring expenses reached R$446.7 million in 2009, in line with the budget target of R$ 450.0 million stipulated
for 2009 and 12.9% below the R$ 512.6 million verified in 2008.
The main highlights of 4Q09 in comparison to 3Q09 include:
Personnel: the personnel expenses, adjusted to eliminate the costs related to the stock options plan,
reached R$58.6 million in 4Q09, up 12.9% from R$51.9 million in 3Q09. The main highlights in 4Q09 were:
R$4.9 million due to overtime agreement adjustments and severances and 5% related to the annual union
bargain, which was agreed in August of 2009.
Data processing: data processing expenses of R$31.2 million in 4Q09 were up 28.7% from R$36.8 million in
3Q09, due to the greater number of projects conducted at the end of the year and to the increase in
expenses related to IT service providers, which reached R$ 1.9 million in 4Q09.
Thrid-party providers: expenses related to third-party providers increased by 84.7%, to R$17.3 million, in
4Q09, due to the hiring of consultants for strategic projects (back office abroad and consultants hired to
assist in the formulation of a new fee structure policy related to the BOVESPA segment ) and other services,
such as operational improvements for brokerage houses­ PQO (Operational Qualification Program)
The main highlights of 2009 in comparison to 2008 include:
Personnel: personnel expenses, adjusted to eliminate the effect of costs related to the stock option plan (R$
59.6 million) for employees, as well as of expenses related to employee dismissals originated from the
process of integration of the Company R$ 18 million), reached R$212.2 million in 2009, down 2.8% from
R$218.2 million in 2008, due mainly to the synergies captured in the process of integration between the two
Exchanges.
Data processing: data processing expenses of R$102.6 million in 2009 were down 28.1% from R$142.7
million in 2008, also due to the synergies captured in the process of integration between the two Exchanges.
Marketing and promotion: decreased by 23.8%, to R$19.6 million in 2009, from R$25.6 million in 2008, also
reflecting the synergies captured after the integration between the two Exchanges.
Communications: communications expenses increased by 25.1%, to R$23.4 million in 2009, from R$18.7
million in 2008, as a result of increased number of executed trades and the corresponding increase in trading
advices.
MAIN RECENT DEVELOPMENTS
Technological Developments in trading environments
The continuing improvements and innovations made in the information technology area have positioned the
BM&FBOVESPA electronic trading platforms amongst the most advanced platforms across the world.
A number of projects have been implemented or are in the process of being implemented, including the following:
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BM&F Segment
DMA Model 2 (Direct Market Access via DMA Provider)
2
: scheduled to start in 1Q10, an additional DMA
provider will connect to the Exchange GTS system, GL Trade (GL Net) to provide customers with international
order routing services along with current providers Marco Polo, Bloomberg Tradebook and Cedro.
Pay for the development of Back and Middle Office solutions utilized by FCMs (scheduled to start in 3Q10)
NDF forward currency contracts: OTC market product for hedging in Brazilian Reals, U.S. Dollars, Euros and
Japanese Yens (implemented in January of 2010)
Bovespa Segment
MegaDirect: starting from October 20, we launched this communication software for automated
connectivity between brokerage firms and the MegaBolsa system. This solution, which lowered round-trip
latency to estimated 10 milliseconds from 153 milliseconds currently, is set to replace the Multigateway
solution. In addition, it should give market participants the ability to use distinct trading screens provided by
independent software vendors (ISVs);
Increased throughput capacity at the equities clearinghouse: scheduled to start in November, the processing
capacity at our equities clearinghouse increased to 1.5 million daily trades, from 770 thousand previously;
DMA Developments: the implementation of DMA Model 2 (DMA via providers), DMA Model 3 (sponsored
direct connection) and DMA Model 4 (DMA via co-location), are also scheduled to launch in the first quarter
of 2010. These new implementations are still pending to be approved by the Brazilian Securities and
Exchange Commission (CVM);
MegaLine tool: this pre-trade risk management tool is scheduled to launch in 4Q09
MoU with CME Group about strategic partnership
BVMF announced, on February 11, 2009, it has entered into a Memorandum of Understanding with the CME
Group, Inc., for the creation of a global preferred strategic partnership with an aim to: (i) pursue strategic

2
The DMA (Direct Market Access) is divided in four different types of access, described as following:
Type 1 ­ Traditional Model, through which the broker offers its trading infrastructure to the participant
Type 2 ­ Access via DMA providers, including CME-Globex routing, through which participants that are already
connected to the infrastructure of such providers will be able to access our matching engine
Type 3 ­ Sponsored Direct Connection with the exchange, a sort of connection that does not require a link with
the broker infrastructure, only via a logical link.
Type 4 ­ Co-Location, an access model through which the participant plugs servers inside the exchange's data
center that are capable of registering trades automatically, according to the algorithms previously developed.
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investments and commercial opportunities with other international exchanges, on a shared and equal basis;
(ii) jointly develop a multi-asset class trading platform for the trading of equities, derivatives, fixed income
securities and other exchange-traded or OTC-traded assets; (iii) increase its ownership interest in CME to 5%,
equivalent on this date to approximately one billion U.S. Dollars; and (iv) receive a seat on CME's Board of
Directors.
For the complete implementation of each phase of the new platform, including the acquisition of all the
related underlying technology and intellectual rights, BVMF investments, over the next 10 years, are
estimated for the amount of USD175 million at a present value of USD100 million.
BVMF will raise its equity stake in CME to 5% is equivalent to approximately USD620 million.
Strategic and commercial partnership with the Nasdaq OMX group
In Dec 28, 2009, BVMF released a material fact regarding its negotiations with The NASDAQ OMX Group, as follows:
Order Routing: NASDAQ OMX intends to develop a technological system that will allow (a) North-American
broker dealers connected to the system to send buy and sell orders for stocks traded in BM&FBOVESPA,
through a contractual relationship with a Brazilian broker, and (b) Brazilian brokers connected to the system to
send buy and sell orders for stocks traded in NASDAQ OMX, through a contractual relationship with a North-
American broker dealer.
Distribution of Prices of Securities (Market Data): NASDAQ OMX will distribute the prices of the securities
(market data) traded in BM&FBOVESPA and BM&FBOVESPA will distribute the prices of the securities traded
in NASDAQ OMX. Such agreement provides for electronic and international distribution on a non-exclusive
basis.
Licensing of Products to Brazilian Companies: BM&FBOVESPA will offer to publicly traded
Brazilian companies
products licensed from NASDAQ OMX, designed to support and facilitate the activities of such companies, as
those related to investors relations (IR), structuring and management of board of directors, issuance of press-
releases and communications to the market and analysts.
Estimated investment and operating expenses for 2010
For 2010, an estimated total investments of R$302.1 million and total operating expenses of R$550 million (except
stock options plan and depreciation), which will be divided into the following areas: IT and trading and post trading
services; Growth of customer base and revenues; and Institutional Strengthening, as follows:
BRL millions
Opex 2010
Capex 2010
IT and trading and post trading services
309
56%
276.9
92%
Growth of customer base and revenues
113
20%
Institutional Strengthening
128
23%
25.2
8%
Total
550
302.1
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IT and trading and post trading services: investments will be allocated to the expansion of trade capabilities,
develop, jointly with CME Group, a multi-asset class trading platform for the trading of equities, derivatives,
fixed income securities and other exchange-traded or OTC-traded assets, restructuring of data processing
centers (main and contingency), enhancement of IT systems and the integration between the clearinghouses.
Growth of customer base and revenues: strengthening of the popularization and financial education
program, expansion of company prospecting activities (Bovespa Mais, Novo Mercado and BDRs),
implementation of a new fee structure policy for the BOVESPA segment, attracting high-frequency investors,
development of products and international expansion
Institutional Strengthening: creation of the Business Research and Project area, strengthening of the Social
and Sustainability area and enhancements to the Internal Controls and Project Management areas
DISCUSSION AND ANALYSIS OF OPERATING DATA
BM&F Segment
Average daily number of contracts traded: the average daily number of contracts traded in the fourth quarter
of 2009 increased by 26.1%, to 1.56 million contracts, from 1.24 million contracts traded in the previous
period. In 2009, the average daily number of contracts traded fell by 3.3% when compared to the previous
year, whereas it increased by 9.6% in 4Q09 when compared to 3Q09. The highlight was the increase of 42.2%
in the daily average number of interest rate contracts traded in 4Q09, to 800,800 contracts, from 563,000
contracts in 4Q08, as well as the increase in the daily average number of interest rate contracts traded in 2009,
up 7.0% from 2008. The daily average number of equity indices and foreign exchange rate contracts traded
between 4Q09 and 4Q08 increased by 18.4% and 13. 8%, respectively, whereas the daily average number of
equity indices and foreign exchange rate contracts traded between 2009 and 2008 decreased by 8.7% and
16.4%, respectively.
Commodities: the volume traded fell by 13.6% between 4Q08 and 4Q09 and fell by 31.4% between 2008 and
2009. The RPC fell by 25% between 4T08 and 4T09 and fell 35.4% between 2008 and 2009. On the other hand,
the positive highlight was the cash-settled corn contract, whose volumes have been consistently growing in the
last few months, reaching 41,500 contracts traded in the month of January 2010, from 4,800 contracts traded in
January 2009.
Average revenue per contract (RPC): average revenue per contract of R$1.333 in 4Q09 fell by 25.5% and 4.2%
when compared to 4Q08 and 3Q09, respectively. In a year-on-year comparison of the twelve months to
December 2009, the average revenue per contract fell by 10.3%, primarily due to the following: (i) the
elimination of existing discounts from August of 2008 to November 2008, which inflated the fees per contract
in the period; (ii) the exchange rate variation, which adversely impacted the revenues from transactions with
foreign exchange rate contracts , U.S. Dollar-denominated interest rate contracts and commodities contracts;
and (iii) the discounts to the use of DMA and high-frequency traders.
CME Globex: adherence by participants to interconnected trading activities based on this order routing
arrangement climbed to 3.4% of total volume traded and daily average of 107.0 thousand contracts (both
sides of the trade) in December 2009, from 2.8% of this volume and daily average of 84.0 thousand contracts
in September, while in October 2009 it corresponded to 4.7% of this volume, with a daily average of 151.0
thousand contracts traded.
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High-frequency trading: with a daily average of 122.0 thousand contracts traded (both sides), high-frequency
traders accounted for 4.2% of the total volume traded in the BM&F segment in December 2009, versus 3.8% of
the total volume traded and a daily average of 108.0 thousand contracts traded in September 2009, reaching
6% in October 2009. We should note that, as of December 2009, this type of trading accounted for 23.9% of
the volume traded in contracts based on stock market indices, 45.5% of the volume traded in mini contracts
(web trading) and 4.4% of the volume traded in FX contracts.
Bovespa Segment
Average daily financial volume: the average daily volume traded in the fourth quarter of 2009, of R$6.8 billion,
increased by 56.4% in comparison to the same period for the previous year, whereas in a comparison of the
twelve months to December 2009, the average daily volume traded of R$ 5.3 billion represented a 4.3%
retreat from the same period one year ago. Increase of 31.2% between 3Q09 and 4Q09, reaching historical
levels of R$7.3 billion in October 2009.
Turnover velocity: in the fourth quarter of 2009, the annualized turnover velocity reached 71.6% against 74.6%
in the same period for the previous year due to the fact that the total market capitalization increasing at a
higher rate than the volume, whereas in a comparison of the twelve months to December 2009, turnover
velocity was 67.0% against 63.2% in the same period for the previous year.
Average daily trades: the average daily number of trades reached record highs both for the quarter and the
twelve months to December 2009. Average daily trades of 391,000 in the fourth quarter of 2009 increased by
31.9% year-on-year. In this period, such effect increased the average value per trade to R$ 17,000 from R$
14,000. In the twelve months to December 2009 the average of 332,000 daily trades represented an increase
of 35.6% in comparison to the 245,000 daily trades in the same period one year ago and an increase of 17.2%
comparing 4Q09 with 3Q09.
Investors: The number of active custody accounts at the end of the quarter to December was 576,000, up 3.1%
from 559,000 in the same quarter the year before. The volume traded by foreign investors in the fourth
quarter accounted for 31.6%, from 35.1% in the same quarter one year earlier. The volume traded by
institutional investors in the fourth quarter accounted for 27.3%, from 24.0% in the same quarter one year
earlier.
IPO market: In the fourth quarter of 2009, the following companies launched their IPOs: Banco Santander
3
,
Cetip, Direcional and Fleury. In addition, ten follow-on offerings were carried out (Rossi, PDG Realty, Gol,
Brookfield, CCR, Iguatemi, Cyrela, Marfrig, EDP and Anhanguera), all of which raised an aggregate of R$24.0
billion. In 2010
4
, R$ 2.9 billion was already raised, consisting of 2 IPOs (Alliansce and Multiplus) and 2 follow-
on offerings (Inpar e PDG Realty). Six other offerings are in the pipeline, including four initial public offerings
(Br Properties, OSX Brasil, Primav Ecorodovias and Renova Energia) and two follow-on offerings (M. Dias
Branco and MRV).
Collateral: On December 31, 2009, the collateral deposited by participants totaled R$101,641.1 million, down
19.1% from the total amount of R$125,676.8 million deposited in 2008. This fall is due mainly to the reduction
3
The Santander IPO is registered as a follow-on offering with the CVM because years ago, before the acquisition by
Santander, the bank then named B
ANESPA
had conducted a small initial offering and registered as a public company, with an
immaterial free float. As a result, for all practical purposes, the Santander offering equates to an IPO.
4
Data until February 5, 2010
background image
11/15
of 38.8% in the volume of margin required for Derivatives Clearinghouse products, which is basically due to the
reduced risk levels, clearly demonstrating the improved market conditions between those two years. This fall
was smoothed by the increase of 69.6% in the collateral deposited in the Equities and Private Fixed Income
Clearinghouse, which is basically due to the increased level of activities in the BOVESPA segment.
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12/15
4Q09 Consolidated Income Statement Compared With 4Q08 Pro Forma Unaudited Income Statement
(in BRL thousands)
in thousands of BRL
4Q09
4Q08
(Pro Forma)
Var.
4Q09/4Q08
3Q09
Var.
4Q09/3Q09
2009
2008
(Pro Forma)
Var.
2009/2008
Operational Revenues
473,890
396,369
19.6%
426,505
11.1% 1,672,894
1,783,358
-6.2%
Trading / Clearing Systems - BM&F
133,997
147,585
-9.2%
138,436
-3.2%
552,492
634,230
-12.9%
Derivatives
125,793
137,973
-8.8%
128,147
-1.8%
516,052
601,275
-14.2%
Foreign Exchange
5,160
6,376
-19.1%
4,534
13.8%
20,849
21,302
-2.1%
Securities
16
61
-73.8%
26
-38.5%
155
330
-53.0%
Brazilian Commodities Exchange
955
2,008
-52.4%
3,535
-73.0%
7,146
7,865
-9.1%
BM&F Bank
2,073
1,167
77.6%
2,194
-5.5%
8,290
3,458
139.7%
Trading / Clearing Systems-Bovespa
317,088
208,220
52.3%
267,456
18.6% 1,032,201
1,055,028
-2.2%
Trading fees
191,615
123,700
54.9%
160,901
19.1%
617,000
635,091
-2.8%
Clearing fees
73,830
45,642
61.8%
60,693
21.6%
232,166
259,355
-10.5%
Securities Lending
10,533
6,413
64.2%
8,866
18.8%
32,989
48,528
-32.0%
Listing
10,034
8,000
25.4%
9,562
4.9%
39,549
29,776
32.8%
Depositary and custody
21,153
17,317
22.2%
16,780
26.1%
70,231
62,523
12.3%
Trading access (Brokers)
9,923
7,148
38.8%
10,654
-6.9%
40,266
19,755
103.8%
Other Operational Revenues
22,805
40,564
-43.8%
20,613
10.6%
88,201
94,100
-6.3%
Vendors
14,569
11,187
30.2%
14,111
3.2%
57,691
43,359
33.1%
Commodities classification fees
1,088
1,373
-20.8%
1,716
-36.6%
4,304
3,535
21.8%
Others
2,387
14,401
-83.4%
4,786
-50.1%
13,615
26,556
-48.7%
Dividends
4,761
13,603
-65.0%
-
-
12,591
20,650
-39.0%
Revenue deductions
(49,131)
(40,855)
20.3%
(43,510)
12.9%
(170,350)
(181,347)
-6.1%
PIS and Cofins
(43,347)
(36,450)
18.9%
(38,406)
12.9%
(150,786)
(162,752)
-7.4%
Service tax
(5,784)
(4,405)
31.3%
(5,104)
13.3%
(19,564)
(18,595)
5.2%
Net Operational Revenues
424,759
355,514
19.5%
382,995
10.9% 1,502,544
1,602,011
-6.2%
Operational Expenses
(160,372)
(128,137)
25.2%
(132,502)
21.0%
(569,832)
(544,545)
4.6%
Personel
(74,124)
(50,945)
45.5%
(63,883)
16.0%
(289,806)
(218,243)
32.8%
Data processing
(31,186)
(28,674)
8.8%
(24,233)
28.7%
(102,596)
(142,702)
-28.1%
Deprec. and Amortization
(12,012)
(8,212)
46.3%
(11,546)
4.0%
(42,396)
(31,942)
32.7%
Third Party Services
(17,303)
(10,338)
67.4%
(9,370)
84.7%
(45,495)
(40,998)
11.0%
Maintenance
(2,865)
(4,051)
-29.3%
(2,750)
4.2%
(11,007)
(13,536)
-18.7%
Communications
(6,969)
(5,226)
33.4%
(6,219)
12.1%
(23,428)
(18,721)
25.1%
Leases
(984)
(1,083)
-9.1%
(558)
76.3%
(3,032)
(4,351)
-30.3%
Supplies
(740)
(985)
-24.9%
(713)
3.8%
(2,510)
(3,629)
-30.8%
Marketing
(5,947)
(5,353)
11.1%
(5,841)
1.8%
(19,555)
(25,654)
-23.8%
Taxes
(994)
(372)
167.2%
(495)
100.8%
(2,323)
(1,654)
40.4%
Board Compensation
(1,367)
(1,856)
-26.3%
(1,184)
15.5%
(5,252)
(7,179)
-26.8%
Other
(5,881)
(11,042)
-46.7%
(5,710)
3.0%
(22,432)
(35,936)
-37.6%
Operating Income
264,387
227,377
16.3%
250,493
5.5%
932,712
1,057,466
-11.8%
Financial Income
74,104
83,100
-10.8%
57,042
29.9%
253,862
306,093
-17.1%
Financial Revenues
81,534
95,856
-14.9%
65,870
23.8%
289,686
364,859
-20.6%
Financial Expenses
(7,430)
(12,756)
-41.8%
(8,828)
-15.8%
(35,824)
(58,766)
-39.0%
Income before Taxes
338,491
310,477
9.0%
307,535
10.1% 1,186,574
1,363,559
-13.0%
Income Tax and Social Contribution
(1,410)
(96,339)
-98.5%
(544)
159.2%
32,085
(458,497)
-107.0%
Income Tax
(966)
(70,751)
-98.6%
(338)
185.8%
23,890
(337,143)
-107.1%
Social Contribution
(444)
(25,588)
-98.3%
(206)
115.5%
8,195
(121,354)
-106.8%
Def. Inc.Tax and Soc. Contribution
(116,961)
(11,128)
951.1%
(60,196)
94.3%
(336,590)
6,109
-5609.7%
Deferred income tax
(86,001)
(8,121)
959.0%
(43,462)
97.9%
(247,493)
4,492
-5609.6%
Deferred social contribution
(30,960)
(3,007)
929.6%
(16,734)
85.0%
(89,097)
1,617
-5610.0%
Minority Interest
54
(606)
-108.9%
(1,029)
-105.2%
(1,019)
(1,567)
-35.0%
Net Income
220,174
202,404
8.8%
245,766
-10.4%
881,050
909,605
-3.1%
Net Margin
51.8%
56.9%
64.2%
58.6%
56.8%
EBITDA
276,399
235,589
17.3%
262,039
5.5%
975,108
1,089,408
-10.5%
EBITDA Margin
65.1%
66.3%
68.4%
-4.9%
64.9%
68.0%
Adjusted Net Income
315,313
202,404
55.8%
337,348
-6.5% 1,223,763
909,605
34.5%
Adjusted Operational Expenses
(133,669)
(119,925)
11.5%
(109,019)
22.6%
(446,675)
(512,603)
-12.9%




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13/15
Consolidated Balance Sheet ­ 2009 compared to 2008
(in BRL thousands)

ASSETS
2009
2008 LIABILITIES AND SHAREHOLDERS' EQUITY
2009
2008
Current Assets
2,778,968
1,965,461
Current Liabilities
1,162,075
1,075,744
Cash and cash equivalents
50,779
40,227
Collateral for transactions
810,317
585,963
Financial investments
2,599,784
1,744,069
Earnings / rights on securit. in custody
31,897
36,020
Accounts receivable - net
40,205
105,169
Suppliers
21,443
18,442
Other receivables - net
22,656
9,933
Salaries and social charges
43,237
20,806
Taxes recoverable and prepaid
51,143
9,540
Provision for taxes and contrib. payable
24,616
40,254
Deferred inc. tax and social contrib.
5,688
48,594
Income tax and social contribution
3,697
2,652
Prepaid expenses
8,713
7,929
Financing
9,295
4,087
Divid. and interest on own cap. payable
20,839
194,984
Non-current Assets
18,422,215
18,464,628
Redemption of preferred shares
1,839
4,132
Other accounts payable
194,895
168,404
Long-term receivables
715,951
808,863
Financial investments
585,648
629,945
Non-current Liabilities
313,002
46,729
Other receivables - net
4,555
11,361
Deferred income tax and social contribution
40,853
73,476
Financing
2,495
-
Judicial deposits
84,895
93,885
Deferred Income Tax and Social Contrib.
261,060
-
Prepaid expenses
-
196
Prov. for conting. and legal obligations
49,447
46,160
Other accounts payable
-
569
Investments
1,319,439
1,318,282
Investment in subsidiary company
-
-
Minority interest in subsidiaries
16,357
15,892
Other Investments
1,319,439
1,318,282
Shareholders' Equity
19,709,749
19,291,724
Property and equipment
268,895
247,850
Capital
2,540,239
2,540,239
Capital reserve
16,666,489
16,606,853
Intangible assets
16,117,930
16,089,633
Revaluation reserves
23,551
24,131
Goodwill
16,064,309
16,064,309
Legal reserve
3,453
3,453
Software and projects
53,621
25,324
Statutory reserves
706,119
302,928
Treasury stock
(230,102)
(185,880)
TOTAL ASSETS
21,201,183
20,430,089
TOTAL LIAB. AND SHAREHOLDERS' EQUITY
21,201,183
20,430,089















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14/15
OPERATIONAL STATISTICAL DATA ­ BM&F SEGMENT
Product
4Q09
4Q08
4Q09/4Q08
(%) Change
3Q09
4Q09/3Q09
(%) Change
2009
2008
2009/2008
(%) Change
BRL Int. rate contracts
800.8
563.0
42.2%
755.6
6.0%
843.5
788.7
7.0%
USD Int. rate contracts
83.2
92.2
-9.8%
64.4
29.1%
78.3
94.3
-17.0%
FX Contracts
494.1
434.3
13.8%
463.0
6.7%
447.1
534.9
-16.4%
Index-based contracts
98.4
83.1
18.4%
69.6
41.4%
80.0
87.6
-8.7%
Commodity contracts
11.3
13.0
-13.6%
10.1
11.2%
10.2
14.9
-31.4%
OTC contracts
13.8
9.2
49.5%
8.8
55.5%
9.3
12.4
-25.5%
Web Trading
57.6
41.6
38.4%
50.7
13.6%
52.6
40.5
30.0%
Total
1,559.2
1,236.6
26.1%
1,422.3
9.6%
1,521.0
1,573.3
-3.3%
Product
4Q09
4Q08
4Q09/4Q08
(%) Change
3Q09
4Q09/3Q09
(%) Change
2009
2008
2009/2008
(%) Change
BRL Int. rate contracts
1.037
1.164
-10.9%
1.068
-2.9%
0.979
1.141
-14.2%
USD Int. rate contracts
1.017
1.777
-42.7%
1.178
-13.6%
1.356
1.211
12.0%
FX Contracts
1.927
2.699
-28.6%
2.031
-5.1%
2.161
2.062
4.8%
Index-based contracts
1.577
1.806
-12.7%
1.559
1.2%
1.622
2.143
-24.3%
Commodity contracts
2.345
3.126
-25.0%
2.440
-3.9%
2.307
3.571
-35.4%
OTC contracts
1.508
2.443
-38.3%
1.485
1.5%
1.655
2.342
-29.4%
Web Trading
0.150
0.173
-13.3%
0.175
-14.3%
0.176
0.162
8.5%
Total
1.333
1.789
-25.5%
1.391
-4.2%
1.365
1.522
-10.3%
AVERAGE DAILY TRADED CONTRACTS (THOUSANDS)
AVERAGE RATE PER CONTRACT - RPC (BRL)
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15/15
OPERATIONAL STATISTICAL DATA ­ BOVESPA SEGMENT
4Q09
4Q08
4Q09/4Q08
(%) Change
3Q09
4Q09/3Q09
(%) Change
2009
2009
2009/2008
(%) Change
Stocks and Equity Deriv.
6,839.8
4,370.2
56.5%
5,212.4
31.2%
5,285.2
5,520.3
-4.3%
Cash market
6,377.1
4,147.0
53.8%
4,885.6
30.5%
4,943.7
5,162.3
-4.2%
Derivatives
462.7
223.3
107.2%
326.8
41.6%
341.5
357.9
-4.6%
Forward market
134.8
72.7
85.3%
113.0
19.3%
96.5
177.8
-45.7%
Options market (stocks / indices)
327.9
150.5
117.8%
213.8
53.4%
245.0
180.2
36.0%
Fixed income and other spot securities
1.5
2.7
-45.3%
2.1
-28.3%
1.6
5.2
-70.0%
Total
6,841.3
4,372.9
56.4%
5,214.4
31.2%
5,286.8
5,525.5
-4.3%
4Q09
4Q08
4Q09/4Q08
(%) Change
3Q09
4Q09/3Q09
(%) Change
2009
2009
2009/2008
(%) Change
Stocks and Equity Deriv.
391,793
297,067
31.9%
334,356
17.2%
332,343
245,062
35.6%
Cash market
318,872
245,262
30.0%
279,924
13.9%
270,626
195,062
38.7%
Derivatives
72,921
51,805
40.8%
54,432
34.0%
61,717
50,001
23.4%
Forward market
1,821
963
89.1%
1,441
26.4%
1,325
2,237
-40.8%
Options market (stocks / indices)
71,100
50,842
39.8%
52,991
34.2%
60,392
47,764
26.4%
Fixed income and other spot securities
6.6
7.1
-7.0%
6.3
5.6%
6.6
8.5
-22.9%
Total
391,800
297,074
31.9%
334,362
17.2%
332,349
245,071
35.6%
AVERAGE DAILY TRADED VALUE (BRL MILLIONS)
AVERAGE DAILY NUMBER OF TRADES
4Q09
4Q08
4Q09/4Q08
(%) Change
3Q09
4Q09/3Q09
(%) Change
2009
2009
2009/2008
(%) Change
End of period Market Cap. (BRL billions)
2,335
1,375
69.8%
2,093
11.5%
2,335
1,375
69.8%
Average Market Cap. (BRL billions)
2,237
1,384
61.6%
1,919
16.6%
1,827
2,037
-10.3%
End of period Ibovespa
68,588
37,550
82.7%
61,518
11.5%
68,588
37,550
82.7%
Average Ibovespa
65,997
37,269
77.1%
55,914
18.0%
52,750
55,261
-4.5%
Value under custody (BRL billions)
873
650
34.2%
752
16.0%
873
650
34.2%
Number of custody accounts (thousands)
576
559
3.1%
538
7.0%
576
559
3.1%
Securities Lending (End of period of Open
Interest - BRL billions)
16
7
127.6%
16
-4.0%
16
7
127.6%
# Companies listed
434
439
-1.1%
433
0.2%
434
439
-1.1%
Treasury Direct - stock of securities (BRL millions)
3,015
2,283
32.1%
2,981
1.2%
3,015
2,283
32.1%
Turnover Velocity (annualized)
71.6%
74.6%
-3 p.p.
62.6%
9,0 p.p.
67.0%
63.2%
3,8 p.p.
OTHER OPERATIONAL STATISTICS
Market
4Q09
4Q08
3Q09
Stocks and Equity Derivatives
6.5
6.2
6.6
Cash Market
5.9
5.8
6.2
Derivatives
14.2
13.8
13.8
Forward Market
13.2
13.0
13.0
Options Market
14.7
14.1
14.3
Total BOVESPA
6.5
6.2
6.6
TRADING MARGINS (basis points)