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1Q13 Earnings Presentation

May 10
th
, 2013
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2
Forward Looking Statements
This presentation may contain certain statements that express the management's 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
BM&FBOVESPA works in.
The verbs "anticipate," "believe," "estimate," "expect," "forecast," "plan," "predict," "project," "target" and other
similar verbs 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&FBOVESPA
services; (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
the Brazilian Securities Commission CVM Instruction 400 of 2003, as amended.
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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 expenses¹:
R$124.0 million, -1.1%
Operating income:
R$348.2 million, +3.4%
EBITDA:
R$412.4 million, +4.1% (EBITDA margin of
79.2% in 1Q13)
Adjusted net income²:
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 interest
positions (R$44.7 billion); +31.5%
Tesouro Direto: +24.5% of assets under custody
FIIs (real estate funds): strong growth of volumes (R$38.8
million in 1Q13) and number of investors (102.7 thousand)
LCA (agribusiness credit bills): consistent increase of average
assets under custody (R$40.0 billion)
MAIN PROJECTS AND HIGHLIGHTS
3
1Q13 vs. 1Q12 Highlights
Volumes growth and strict cost control
FINANCIAL HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
1
Excludes stock options plan, depreciation, provisions and tax on dividends from CME Group.
2
Excludes 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 and
taxes paid overseas to be compensated.
3
IPN/CORE implementation requires the authorization of the regulators.
PUMA Trading SystemTM: equities module deployed in Apr'13
Clearinghouses Integration: tests starting in Jul'13
OTC Platform: certification process for registration of NDFs started
in 1Q13
Pricing: changes in pricing policy of cash equities announced on
March 05, 2013
Public Offerings: resumption of shares public offerings exceeding
R$15 billion from January to Apr'13.
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1Q13 vs. 1Q12: + 5.0%
12.3% increase of foreign investors ADTV, due to
volatility and high frequency trades (HFTs)
Turnover velocity growth hit 71.7%
1Q13 vs. 1Q12: -3.4%
Decrease in the options margin (market maker) and
derivatives participation in the total volume
TRADING MARGIN (in basis point - bps)
Market
1Q13
1Q12
Cash market
5.352
5.333
Derivatives on single stocks
13.141
14.290
Forward
12.999
13.020
Options
13.196
14.673
Total BOVESPA
5.706
5.909
4
AVERAGE DAILY TRADING VALUE (ADTV)
BOVESPA Segment Performance
Solid volumes level and turnover velocity growth
ADTV BY GROUP OF INVESTORS
AVERAGE MARKET CAP. AND TURNOVER VELOCITY
(in R$ billions)
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0.4
0.3
0.2
0.6
0.3
1.3
(78%)
1.9
(86%)
1.6
( 90%)
1.4
(71%)
1.8
(84%)
1.7
2.3
1.8
1.9
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 of
Brazilian real-denominated interest rate contracts
RPC: +3.4%, due to:
·
Brazilian real-denominated interest rate contracts
trading in longer maturities
·
Appreciation of the FX rate (US$/R$) - FX and US$
interest rate contracts
·
Decrease of HFTs participation in the ADV
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INTEREST RATE IN R$ CONTRACTS ­ TOTAL REVENUE
(Revenue in R$ millions)
AVERAGE DAILY VOLUME (ADV) AND RPC (R$)
BM&F Segment Performance
High growth of interest rate in R$ 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)
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38.2%: Financial/Commodity Derivatives
39.2%: Cash Equities¹
9.1%: Trading
30.1%: Post-Trading
4.9%: Derivatives on Stocks and Indices
Total Revenue
R$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
6
Revenue Breakdown in 1Q13
Diversified revenue sources as a differential
REVENUE BREAKDOWN
¹Revenue 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%
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Expenses:
R$172.8
million
ADJUSTED EXPENSES (1Q13 vs. 1Q12): -1.1%
Adjusted Personnel: +5.7%, , basically due to the
effects of annual union bargain in Aug'12
Data processing: -7.1%, due to expenses reduction
with IT outsourcing and lower maintenance costs with
legacy platforms
Marketing: repriorization of marketing campaigns
7
1Q13 Expenses
Focus on cost control and operational efficiency
ADJUSTED EXPENSES
TOTAL EXPENSES BREAKDOWN
(in R$ 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
Change
1Q13/1Q12
4Q12
Change
1Q13/4Q12
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 bps
Financial 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.
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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$37.1 million, 43.4% drop
from 1Q13
Finance results fell 29.1%, reflecting lower interest
rates
Finance expenses increased 15.0%, mainly due to the
depreciation of R$ against US$
In 1Q13, investments amounted R$41.8 million
Capex budget ranges:
2013: between R$260 ­ 290 million
2014: between R$170 ­ 200 million
In May 09, the Board of Directors approved R$213.6
million, comprising R$163.6 million in dividends and
R$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' position
on 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).
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Cash position in 1Q13 hit R$2.3 billion, considering:
R$388.7 million in dividends related to the 2012,
paid in Apr'13
Resumption of the shares buyback program in
Apr'13
, when 3.1 million shares was purchased,
totaling R$41.2 million
Financial Highlights
Strong cash position and high payout
(In R$ 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 these
contracts, indicating greater sophistication and
increasing risk exposure
Trading in longer maturities contracts are
growing faster
DERIVATIVES
EQUITIES
2.42
70.0%
2.37
2.33
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$7 billion,
despite adverse market conditions
Low growth of market capitalization
Average Ibovespa 13% below the 2010 level
Turnover Velocity above 70%
Foreign and institutional investors, HFTs and
products development
(ETFs, option and
securities lending) driving the turnover velocity
increase
2.48
71.7%
10
(in thousands)
Growth History
ADV ­ Interest Rate in R$ by type of investor
28
19
52
63
34
85
87
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
67,258
61,207
59,601
58,813
2
4
6
8
10
3 0 .0 0 0
3 5 .0 0 0
4 0 .0 0 0
4 5 .0 0 0
5 0 .0 0 0
5 5 .0 0 0
6 0 .0 0 0
6 5 .0 0 0
2010
2011
2012
1T13
ADTV (R$ billion)
Ibovespa (Average)
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12.7
20.5
30.2
31.9
44.7
2009
2010
2011
2012
2013*
0.9
1.5
3.7
14.6
38.8
2009
2010
2011
2012
2013*
2.9
3.9
6.1
9.0
9.8
2009
2010
2011
2012
2013*
48.8
73.4
ADTV before
Market Maker
ADTV after
Market Maker*
18.6
28.5
48.7
115.9
98.0
2009
2010
2011
2012
2013*
Securities Lending
Real Estate Funds (FIIs)
Options Market
(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 Products
Growing sophistication of market participants
BM&FBOVESPA has a 65% market share
of 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)
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12
Derivatives module
Concluded in 2H11
Equities module
Migration concluded in Apr'13
Performance e Capacity
Latency reduced to microseconds
with lower standard deviation
Processing capacity of 200 million
messages per day
Platform for the growth of stock
and derivatives markets
Attracting new participants (HFT)
Expansion of the market maker
program to other products/markets
Features
Fully adapted to the
characteristics of the Brazilian
market
Process automation and controls
Meets the needs of different
market participants
More dynamism in trading
activity
Availability and Controls
More stability and availability to the
market
Price discovering rules (auctions)
Price variation limits (dynamic / static)
Assurance of market integrity as a
requirement
Quality in price discovering
Protection against market breakage
and failures
PUMA Trading System
Successful delivery of the equities module
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Final Remarks
Revenue growth and diversification
Delivering growth in the main markets and products (equities and derivatives)
Focus on high potential products that have been showing strong growth

Achieving operating and technological excellence
Development of platforms that bring efficiency to BM&FBOVESPA and the market (equities
module of PUMA Trading System delivered in Apr'13)
Assuring market integrity
Remain focused on cost control
Focus on costumers' needs
Deepen the relationship with investors, brokers and issuers, strengthening the Company's
position
Revision of the pricing policy and development of incentive programs (1
st
announcement in
Mar´13 for cash equities)
Launching of new products (Selic futures in Mar'13)
Shareholder Return:
Payment of at least 80% of GAAP earnings as dividends and share buyback program
13
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APPENDIX
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Financial Statements
Balance 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. EQUITY
ASSETS
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Financial Statements
Adjusted net income and adjusted expenses reconciliation
(in R$ millions)
1Q13
1Q12
Change
1Q13/1Q12
4Q12
Change
1Q13/4Q12
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
Change
1Q13/1Q12
4Q12
Change
1Q13/4Q12
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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www.bmfbovespa.com.br/ir
BM&FBOVESPA ­ Investor Relations
+55 (11) 2565-4729 / 4418 / 4834 / 4728 / 4007
ri@bmfbovespa.com.br