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1
BM&FBOVESPA
4Q08 Earnings Conference Call
March 18
th
,2009
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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&F Bovespa 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&F Bovespa performance.
The factors that might affect performance include, but are not limited to: (i) market acceptance of BM&F
services; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-
competitive industries BM&F Bovespa operates in; (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&F
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&F Bovespa 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&F Bovespa 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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3
EPS: BRL 0.10 compared with BRL 0.11 in the 4Q07
Net margin: 56.9% vs. 55.8% in the previous year
EBITDA margin: 66.3% in the 4Q08 vs. 68.0% in 4Q07;
68.0% in the FY08 vs. 62.9% in the FY07
Expenses reduction: decrease in the 4Q08 reflects delivery of
mergers synergies - BRL 53.3 million annualized reduction in
4Q08 operational expenses compared to 2007 base (adjusted
for inflation)
4Q08 and FY08 Highlights
4Q08 & FY08 EARNINGS
HIGHLIGHTS
Net Revenue Pro-Forma (BRL Millions)
Net Income Pro-Forma (BRL Millions)
398
356
1.377
1.602
4Q07
4Q08
FY07
FY08
222
202
756
910
4Q07
4Q08
FY07
FY08
Operational Expenses Pro-Forma (BRL Millions)
135
128
543
545
4Q07
4Q08
FY07
FY08
DMA development in BM&F Segment: in Mar'09 trades through
DMA represented almost 7% of the total traded
Decrease in volumes in 2H08: negative impact on the results,
but partially offset by a higher turnover velocity (Bovespa
Segment) and by a temporarily higher RPC due to the ending
of the discount policy (BM&F Segment)
Individual Investors: increase of their share in 2008
Cost savings: additional reduction in operational expenses,
which would reach BRL 450 million
Dividends: BRL 139.4 million distribution of interest on
shareholders' equity and BRL 60.6 million in dividends
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4
Summary of Pro-Forma Income Statement
BRL Million
Revenues: full year comparison shows a major improvement in 2008, but the 4Q08 trends shows
the impact of the global crisis, with a large drop in the market cap levels
Operating Expenses: declined in 4Q08 vs. 4Q07 by 4.9% and by 6.6% sequentially due to cost
savings from the integration process
4Q08
4Q07
%
4Q08/4Q07
3Q08
%
4Q08/3Q08
2008
2007
%
2008/2007
Net revenues
355.5
397.6
-10.6% 408.8
-13.0%
1,602.0
1,376.6
16.4%
Operating expenses
(128.1)
(134.7)
-4.9% (137.2)
-6.6%
(544.5)
(543.4)
0.2%
Operating Income
227.4
262.9
-13.5%
271.6
-16.3%
1,057.5
833.3
26.9%
Oper. Margin (variation in p.p)
64.0%
66.1%
(2.20)
66.4% (2.49)
66.0%
60.5%
5.50
EBITDA
235.6
270.3
-12.8% 279.6
-15.7%
1,089.4
866.2
25.8%
EBITDA Margin (variation in p.p)
66.3%
68.0%
(1.70)
68.4% (2.10)
68.0%
62.9%
5.10
Net income
202.4
222.0
-8.8% 237.6
-14.8%
909.6
755.9
20.3%
Net Margin (variation in p.p.)
56.9%
55.8%
1.10
58.1% (1.19)
56.8%
54.9%
1.90
Diluted EPS
0.101
0.110
0.118
0.452
0.376
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5
Revenues Pro-Forma
Gross Revenues composition Pro-Forma - 4Q08
Bovespa Segment
(trading and
clearing)
43%
BM&F Segment
(trading and
clearing)
36%
Others
21%
Despite the decline in revenues tied to trading activity, the revenues from other services increased
by 88.1% over the prior year to BRL 82.6 million, mainly from:
Depository: higher number of investors (mainly individuals)
Listing: Novo Mercado listing fee discount policy terminated
Vendors: more terminals and vendors with our market data
Trading Access Services: implementation of a policy for brokerage house access
The share of non-trading sources increased to 21% of total revenues in 4Q08 versus 10% in 4Q07
Other Operational Revenues includes dividends from investments in other companies
BRL Thousands
4Q08
3Q08
4Q07
Operational Revenues
396,369
454,914
443,014
BM&F Segment
147,585
170,386
137,873
Trading / Clearing fees
144,410
167,832
135,970
Others
3,175
2,554
1,903
Bovespa Segment
206,317
264,601
294,591
Trading / Clearing fees
169,342
225,291
261,918
Securities Lending
6,413
12,368
14,544
Listing
8,000
7,496
6,180
Depository and custody
17,317
15,868
11,949
Trading access (Brokers)
5,245
3,578
-
Other Operational Revenues
42,467
19,927
10,550
Vendors
11,187
11,523
6,155
Others
31,280
8,404
4,395
Net Operational Revenues
355,514
408,756
397,639
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6
BOVESPA SEGMENT
The margin reduction in 4Q08 is due to a higher
participation of day trades in the total traded value
6.707
6.246
6.408
6.501
4Q07
4Q08
2007
2008
1.416
1.789
1.323
1.522
4Q07
4Q08
2007
2008
Bovespa Segment (in Basis Points)
Revenue Margin
BM&F Segment - RPC (in BRL)
BM&F SEGMENT
The increase in the BM&F Rate per Contract (RPC)
reflects the positive impact of the changes in the
pricing policy as well as the BRL depreciation
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7
110
92
88
87
83
69
112
88
4Q07 1Q08 2Q08 3Q08 4Q08 2M09
2007
2008
527
571
564
570
434
375
473
535
4Q07 1Q08 2Q08 3Q08 4Q08 2M09
2007 2008
1,561
1,756 1,765
1,543
1,237
1,315
1,740
1,573
4Q07 1Q08 2Q08 3Q08 4Q08 2M09
2007 2008
Operational Highlights
BM&F Segment
Overall ADTV (Thousands)
Interest Rates in BRL (Thousands)
FX Rates (Thousands)
Indices (Thousands)
780
931
952
716
563
712
988
789
4Q07 1Q08 2Q08 3Q08 4Q08 2M09
2007 2008
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8
Operational Highlights
BOVESPA Segment
ADTV (BRL Millions)
Average Number of Trades (Thousands)
Number of Investors (Thousands)
Turnover Velocity* (annualized)
6,618
5,907
6,519
5,326
4,373
3,832
4,895
5,525
4Q07
1Q08
2Q08
3Q08
4Q08
2M09
2007
2008
199
205
230
254
297
273
153
245
4Q07
1Q08
2Q08
3Q08
4Q08
2M09
2007
2008
478
508
540
551
559
556
478
559
4Q07
1Q08
2Q08
3Q08
4Q08
2M09
2007
2008
35.7%
29.8%
37.6%
38.9%
41.7%
56.4%
62.3%
30.8%
2001
2002
2003
2004
2005
2006
2007
2008
*Relation of the trading value in the cash market and the market cap of the exchange
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Expenses Pro-Forma
The 4Q08 operating expenses decreased by 4.9% over the prior year to BRL 128.1 million. In
2008, it increased by 0.2% to BRL 544.5 million. The decrease in 4Q08 reflects the achievement of
planned merger synergies
Personnel: 9.0% decline in 4Q08 over the prior year and 8.0% sequentially. In 2008, the drop
was 0.5%
Data processing: decline by 13.9% over the prior year and 22.2% sequentially. In the full year
comparison, it increased by 4.6%
Marketing: decline by 32.2% in 4Q08 over the prior year and flat sequentially. In 2008, it
dropped by 26.1%.
Operational expenses Pro-Forma 4Q08
Others
23%
Personnel
40%
Data processing
22%
Depr. & Amort.
6%
Third Party
8%
BRL Thousands
4Q08
3Q08
4Q07
Operational Expenses
128,137
137,158
134,736
Personnel
50,945
55,364
55,995
Data processing
28,674
36,843
33,297
Third Party Services
10,338
11,470
12,825
Deprec. and Amortization
8,212
8,030
7,388
Marketing
5,353
5,324
7,890
Communications
5,226
4,287
4,161
Maintenance
4,051
2,972
2,819
Board Compensation
1,856
1,267
1,090
Leases
1,083
1,200
858
Supplies
985
928
551
Taxes
372
(1,916)
2,943
Other
11,042
11,389
4,919
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Merger and Integration Process
Evolution
MERGER FORMALIZATION
The formal merger was concluded on November 28
th
, 2008, when the General Meeting approved
the merger of BVSP and CBLC
SYNERGIES
The annualized cost reduction in 4Q08 reached BRL 53 million compared to 2007 base expenses
(adjusted for inflation)
Headcount: through Mar'09, a reduction of almost 30% was reached in the combined total of
employees and outsourced personnel, as follows
May-08
Jul-08
Sep-08
Dec-08
Mar-09
Layoffs
%
Full Employees
1,386
1,427
1,204
1,168
1,072
314
22.7%
Outsourced
440
387
303
300
221
219
49.8%
Total
1,826
1,814
1,507
1,468
1,293
533
29.2%
IT processes: cost reduction from mainframe migration to low platform and the renegotiation of
service provider agreements
Marketing and Administrative: 50% reduction in mandatory releases and publications and
renegotiation of more favorable conditions regarding third party service providers
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Capital and Balance Sheet Highlights
Cash and Cash Equivalent: BRL 2.4 billion held at year-end (short + long term)
Goodwill Amortization: non-cash charge of BRL 324.4 million in 2008 (which will not occur from
2009 onwards); and tax deduction starting from Dec'08
Payout: BRL 139.4 million in interest on shareholders' equity approved in Dec'08 (to be paid on or
before April 15, 2009). Additional BRL 60 million in dividends proposed by the Board
Stock Options and Leasing Expenses: non-cash charge of BRL 27.6 million taken in 4Q08 to adjust
our Financial Statements to the new accounting standards, moving towards IFRS
Buyback program: up to 71.3 million shares. 48% bought through Dec'08 and 64.1% by Feb'09
Period
Total (BRL Thousands)
Per share (BRL)
1H08*
336,205
0.19638
2H08
200,000
0.09945
Total
536,206
0.29584
* Includes Bovespa Holding and BM&F.
Period
Number of Shares
Average Price (BRL)
Total (BRL)
2008
34,191,200
5.62
192,197,818.2
Jan-09
9,288,300
6.46
60,031,758.4
Feb-09
2,206,500
6.79
14,992,125.1
Total
45,686,000
5.85
267,221,701.6
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New Developments
DMA and CME order routing evolution
DIRECT MARKET ACCESS
Full electronic connection with the Exchange allows higher diligence on the order intermediation
process and provides facilities to market participants
Allows the trading of high frequency (algorithmic) traders
Growing percentage of DMA originated trades within the total daily average
ORDER ROUTING AGREEMENT WITH CME/GLOBEX
Weak volumes in 2H08 but signs of potential upside in 1Q09
2008
Aug 29
th
Traditional DMA
Sep 30
th
Globex to GTS routing
Dec 3
rd
DMA via Provider
2009
Feb 9
th
GTS to Globex routing
In 2Q09 DMA via direct
connection and Co-Location
DMA Evolution
DMA / CME Milestones
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
ago/08 set/08 out/08 nov/08 dez/08 jan/09 fev/09 mar/09*
Nu
m
b
e
r

o
f

c
o
n
t
r
a
c
t
s
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
D
M
A

s
h
a
r
e

i
n

t
o
t
a
l

v
o
l
u
m
e
Nr. of contract via DMA
DMA share in total volume
* Until march 11
th
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New Developments
Technological developments
MAIN DEVELOPMENTS IN 2009
Creation of one Front-End solution for trading systems (equities and derivatives)
New version of MegaBolsa, which will increase the capacity to 1.5 million trades per day; and reduce
the latency
Matching
Engine
TRADES PER DAY
INTERNAL ROUND TRIP TIME
2008
2009
2008
2009
Cash Markets
MegaBolsa
770,000
1,500,000
290m/s
8m/s
Derivatives
GTS
200,000
200,000
25m/s
8m/s
Clearinghouses merger (derivatives, stocks and corporate bonds, FX spot and government bonds)
New Sinacor (ERPs for Brokerage houses)
Construction of the Contingency Site
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Promising Activities
Retail investors
Individuals increased their composition within BOVESPA's ADTV to 31.1% in the 4Q08 compared
with 22.8% in the 4Q07. For the FY08 the participation of individuals increased to 26.8% vs.
23.2% in the FY07
An important way for individuals to trade is through Home Broker (DMA via internet for
individuals), which accounted for 16.0% of the traded value in the 4Q08 vs. 9.3% in the 4Q07
Individuals - % of Total Value Traded
(average of 4Q08)
New products for individual investors
Direct Treasury via Home Broker: making the access to government bonds more friendly
New ETFs available for trading
9.3%
11.1%
16.0%
8.4%
12.7%
4Q07
3Q08
4Q08
2007
2008
Home Broker - % of Total Value
Traded
Individuals
31.1%
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New Products
BM&F SEGMENT
2008
U.S. dollar options contract with reset
Real/Euro futures contract with market maker
2009
Real/Yen futures contract: developed in partnership with CME, similar to Real/Euro offering
New OTC registration platform
Launching of new registration platform for OTC, providing bilateral netting and mark-to-
market calculation, allowing greater transparency for risk management purposes
BOVESPA SEGMENT
2008
New Indices: Small Cap, MidLarge Cap, Consumption and Real State
Exchange-Traded Funds (ETF): iShares Ibovespa, iShares BM&FBOVESPA MidLarge Cap and iShares
BM&FBOVESPA Small Cap
2009
Listing Segments: revision of Novo Mercado rules and stimulus for Bovespa Mais
Direct Treasury: connection via Home Broker
Options on single stocks with market makers
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New Pricing Policy
BM&F Trading: implementation of a new price grid for BM&F segment based on volumes aiming at
neutrality when compared with Aug'08 framework
BOVESPA Trading: reduction of clearing fees charged to retail investors and private and public
companies in the cash market (beginning in April, 2009)
Other activities
Depository Service: adoption of a percentage charge system based on value under custody
with the depository (beginning in Apr'09)
ADRs: studies on establishment of a fee to be charged for ADRs
Market Data: closer to international prices (beginning in Apr'09)
Listing: adjustments in the charges collected from listed issuers (since Jan'09)
New incentives to attract fixed income bonds issued by listed companies
Access Technology Package: more flexibility for each participant
Product
FY07
Jan-Jul/08
Feb 16 - Mar 11, 2009
Interest Rates in BRL
1.034
1.085
0.938
Interest Rates in USD
0.992
1.021
2.077
FX Rates
2.006
1.811
2.753
Indices
1.620
2.276
1.936
Commodities
3.439
3.665
2.725
OTC
2.303
2.216
3.238
Web Trading
0.058
0.157
0.202
Total
1.323
1.383
1.494
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Macroeconomic environment
Strong presence of risk aversion
Uncertainty around expectations of recovery from the global crisis
Lower valuation of listed companies
Decrease of foreign participation in the Brazilian capital markets
International financial regulation undergoing intense change at the global level
Market environment
Gradual migration of the OTC market to exchange environment through standardization
Strengthening of the CCP activity
Emergence of the high frequency trading activity in our markets, providing significant liquidity
with low leverage and margin requirements
Trends
Opportunities for BM&FBOVESPA
Improve our trading systems with better electronic connectivity, lower latency and higher
capacity
Stimulate sustainable growth of volumes and liquidity through appropriate pricings for different
classes of participants, especially retail
Deliver products and services that allow accessible risk management and cross margining
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Summary
Year over year increase in gross revenues but the reduction in trading
volumes in the 2H08 negatively impacted 4Q08 financial results
Reduction of expenses due to cost savings (synergies) from the
integration process
Lower volumes on both segments, partially offset by a higher RPC and
turnover velocity
Boost in capacity and reduction of latency through investments in new
technologies
Continuous efforts focused on facilitating market access through DMA
Technological architecture designed to meet the necessities of high
frequency trading
New pricing policies aimed at rebalancing our sources of revenues,
reducing cross subsidies and stimulating liquidity for all classes of
participants
Development of new products that match with investors expectations
and needs
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19
APPENDIX
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20
Revenues Pro-Forma - Breakdown
BRL Thousands
4Q08
4Q07
%
4Q08x4Q07
3Q08
%
4Q08x3Q08
2008
2007
%
2008 x 2007
Operational Revenues
396,369
443,014
-10.50%
454,914
-12.90%
1,783,358
1,531,192
16.50%
Trading / Clearing Systems - BM&F
147,585
137,873
7.00%
170,386
-13.40%
634,230
596,246
6.40%
Derivatives
137,973
130,859
5.40%
162,226
-15.00%
601,275
566,452
6.10%
Foreign Exchange
6,376
4,919
29.60%
5,526
15.40%
21,302
21,305
0.00%
Securities
61
192
-68.20%
80
-23.80%
330
930
-64.50%
Brazilian Commodities Exchange
2,008
1,448
38.70%
1,752
14.60%
7,865
6,118
28.60%
BM&F Bank
1,167
455
156.50%
802
45.50%
3,458
1,441
140.00%
Trading / Clearing Syst. Bovespa
206,317
294,591
-30.00%
264,601
-22.00%
1,050,774
871,952
20.50%
Trading fees
123,700
175,473
-29.50%
158,587
-22.00%
635,091
498,803
27.30%
Clearing fees
45,642
86,445
-47.20%
66,704
-31.60%
259,355
269,707
-3.80%
Securities Lending
6,413
14,544
-55.90%
12,368
-48.10%
48,528
50,335
-3.60%
Listing
8,000
6,180
29.40%
7,496
6.70%
29,776
21,803
36.60%
Depository and custody
17,317
11,949
44.90%
15,868
9.10%
62,523
31,304
99.70%
Trading access (Brokers)
5,245
-
-
3,578
46.60%
15,501
-
-
Other Operational Revenues
42,467
10,550
302.50%
19,927
113.10%
98,354
62,994
56.10%
Vendors
11,187
6,155
81.80%
11,523
-2.90%
43,359
21,943
97.60%
Commodities classification fees
1,373
1,194
15.00%
1,784
-23.00%
3,535
3,785
-6.60%
Others
29,907
3,201
834.30%
6,620
351.80%
51,460
37,266
38.10%
Revenue deductions
-40,855
-45,375
-10.00%
-46,158
-11.50%
-181,347
-154,555
17.30%
PIS and Cofins
-36,450
-40,880
-10.80%
-41,354
-11.90%
-162,752
-140,222
16.10%
Service tax
-4,405
-4,495
-2.00%
-4,804
-8.30%
-18,595
-14,333
29.70%
Net Operational Revenues
355,514
397,639
-10.60%
408,756
-13.00%
1,602,011
1,376,637
16.40%
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21
Expenses Pro-Forma - Breakdown
BRL Thousands
4Q08
4Q07
%
4Q08x4Q07
3Q08
%
4Q08x3Q08
2008
2007
%
2008 x 2007
Operational Expenses
128,137
134,736
-4.90%
137,158
-6.60%
544,545
543,352
0.20%
Personnel
50,945
55,995
-9.00%
55,364
-8.00%
218,243
219,444
-0.50%
Data processing
28,674
33,297
-13.90%
36,843
-22.20%
142,702
136,367
4.60%
Deprec. and Amortization
8,212
7,388
11.20%
8,030
2.30%
31,942
32,872
-2.80%
Third Party Services
10,338
12,825
-19.40%
11,470
-9.90%
40,998
41,842
-2.00%
Maintenance
4,051
2,819
43.70%
2,972
36.30%
13,536
13,318
1.60%
Communications
5,226
4,161
25.60%
4,287
21.90%
18,721
13,983
33.90%
Leases
1,083
858
26.20%
1,200
-9.80%
4,351
3,349
29.90%
Supplies
985
551
78.80%
928
6.10%
3,629
3,540
2.50%
Marketing
5,353
7,890
-32.20%
5,324
0.50%
25,654
34,701
-26.10%
Taxes
372
2,943
-87.40%
-1,916
-119.40%
1,654
10,178
-83.70%
Board Compensation
1,856
1,090
70.30%
1,267
46.50%
7,179
1,090
558.60%
Other
11,042
4,919
124.50%
11,389
-3.00%
35,936
32,668
10.00%
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22
BRL Thousands
Consolidated Corporate Earnings
2008
Net Revenues
1,602,011
Operating Expenses
(723,658)
Operating Result
878,353
Operational Margin
54.8%
EBITDA
913,493
EBITDA Margin
57.0%
Goodwill Amortization
(324,421)
Financial Result
305,972
Net Income Before Tax
859,904
Income Tax and Soc. Cont.
(212,741)
Deferred Income and Soc. Cont.
119,138
Minority Interests
(1,567)
Net Income
645,596
Net Margin
40.3%
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23
4Q08
4Q07
%
4Q08x4Q07
3Q08
%
4Q08x3Q08
2008
2007
%
2008 x 2007
Operational Revenues
396,369
443,014
-10.5%
454,914
-12.9%
1,783,358
1,531,192
16.5%
Trading / Clearing Systems - BM&F
147,585
137,873
7.0%
170,386
-13.4%
634,230
596,246
6.4%
Trading / Clearing Systems-Bovespa
206,317
294,591
-30.0%
264,601
-22.0%
1,050,774
871,952
20.5%
Other Operational Revenues
42,467
10,550
302.5%
19,927
113.1%
98,354
62,994
56.1%
Revenue deductions
(40,855)
(45,375)
-10.0%
(46,158)
-11.5%
(181,347)
(154,555)
17.3%
Net Operational Revenues
355,514
397,639
-10.6%
408,756
-13.0%
1,602,011
1,376,637
16.4%
Operational Expenses
(128,137)
(134,736)
-4.9%
(137,158)
-6.6%
(544,545)
(543,352)
0.2%
Operating Income
227,377
262,903
-13.5%
271,598
-16.3%
1,057,466
833,285
26.9%
Financial Income
83,100
74,985
10.8%
67,957
22.3%
306,093
307,470
-0.4%
Income before Taxes
310,477
337,888
-8.1%
339,555
-8.6%
1,363,559
1,140,755
19.5%
Income Tax and Social Contribution
(96,339)
(115,307)
-16.4%
(118,838)
-18.9%
(458,496)
(382,225)
20.0%
Def. Inc.Tax and Soc. Contribution
(11,128)
-
-
17,237
-164.6%
6,109
-
-
Minority Interest
(606)
(547)
10.9%
(354)
71.2%
(1,567)
(2,603)
-39.8%
Net Income
202,404
222,035
-8.8%
237,601
-14.8%
909,605
755,928
20.3%
BRL Thousands
Pro-Forma Income Statement
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24
Reconciliation 2008 Consolidated Results
BRL Thousands
Corporate
Non-recurring
Pro-Forma
Gross Revenues
1,783,358
-
1,783,358
Net Revenues
1,602,011
-
1,602,011
Operational Expenses
(1)
(729,483)
179,113
(544,545)
Operational Income
872,528
179,113
1,057,466
Operational Margin
54.5%
-
66.0%
Goodwill Amortization
(ii)
(324,421)
324,421
-
Interest Income, net
305,972
121
306,093
Net income before taxes on profits
859,904
(503,655)
1,363,559
Income Tax / Social Contribution payable / deferred
(212,741)
120,509
(452,388)
Net income for the period
645,596
(264,008)
909,605
Net Margin
40.2%
56.8%
(i) Here are recognized the accounting adjustments resulting from the new standards
(ii) Goodwill amortization excluded for Pro Forma calculation
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25
Balance Sheet as of 12/31/2008
BRL Thousands
(BRL Thousands)
(BRL Thousands)
Current
2,038,937
Current
1,075,744
Cash and Cash Equivalent
1,784,296
Cash Collateral
585,963
Other Credits
254,641
Others
489,781
Long Term Assets
735,387
Long Term Liabilities
46,729
Permanent
17,655,765
Minority Interests
15,892
Investments
1,318,282
Fixed
247,850
Stockholders' Equity
19,291,724
Intangible
16,089,633
Total Assets
20,430,089
Total Liabilities and Equity
20,430,089
Assets
Liabilities and Stockholders' Equity
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26
Current and Deferred Taxes Reconciliation
BRL million
4Q08
FY2008
Income Tax / Social Contrib. (Corporate)
(69.4)
(331.9)
(-) Tax effect from goodwill amortization december/08
(11.2)
(11.2)
(-) Deferred goodwill amortization
(1)
(1.3)
(1.3)
(-) Tax effect from Interest on Equity Capital
(2)
(11.7)
(69.4)
(-) Tax effect from non-recurring expenses
(2.7)
(44.8)
Income Tax / Social Contrib. (Pro Forma)
(96.3)
(458.5)
Deferred Inc.Tax / Soc. Contrib. (Corporate)
32.3
119.1
(-) Goodwill amortization
(9.2)
(78.2)
(-) New accounting standards adjustment regarding leasing expenses
0.0
(0.5)
(-) Tax effect from Interest on Equity Capital
(2)
(35.6)
(35.7)
(+) Deferred goodwill amortization
(1)
1.3
1.3
Deferred Inc.Tax / Soc. Contrib. (Pro Forma)
(11.1)
6.1
(1)
Refers to deferred credits used to offset the tax payable base
(2)
The tax shield from Interest on Equity Capital to be paid regarding 2H08's results (recorded in Q408) was
distributed between deferred and current taxes
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27
Operational Highlights
Margin per Segment
BM&F SEGMENT
Rate per Contract (BRL)
BOVESPA SEGMENT
Basis points
Product
4Q07
3Q08
4Q08
2M09
FY07
FY08
Interest Rates in BRL
1.088
1.268
1.164
0.853
1.034
1.141
Interest Rates in USD
1.032
0.960
1.777
1.442
0.992
1.211
FX Rates
1.847
2.057
2.700
2.289
2.006
2.062
Indices
2.013
2.157
1.806
1.577
1.620
2.143
Commodities
3.670
3.814
3.126
1.884
3.439
3.571
OTC
2.388
2.587
2.444
1.920
2.303
2.342
Web Trading
0.105
0.160
0.173
0.180
0.058
0.162
Total
1.416
1.598
1.789
1.333
1.323
1.522
Product
4Q07
3Q08
4Q08
FY07
FY08
Stocks - cash
6.124
6.004
5.826
5.830
5.968
Derivatives
14.619
13.673
13.764
14.182
14.052
Forward Market
12.998
12.998
12.998
12.998
12.998
Options Martket
16.215
14.340
14.134
15.212
15.092
Stocks and Equity Derivatives
6.701
6.510
6.232
6.404
6.492
Fixed Income
13.886
3.842
29.301
11.777
16.215
Total
6.707
6.508
6.246
6.408
6.501
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28
New Pricing Policy
Before
After
Implementation
Date
Trading
BM&F
Universal 5% discount and
additional 25% discount applied to
shareholders with more than 10
thousand BMEF3 stocks
Grid structure with progressive
discount according to the volume
of traded contracts
February 16
th
(last phase)
Trading
BOVESPA
Trading fees subsidizing other
services provided for market
participants
Reduction trading/settlement fee
for retail, foreign and corporate
investors
April 6
th
Custody and
Securities
Lending
Low price charged for custody
services (e.g. BRL6.9 per custody
account)
Grid structure with regressive
fees according to the value in
custody; and rebate of 5bp for the
securities lender
April 6
th
Market Data
Low prices charged for market
participants, compared with
international benchmark
Increase in the prices, but still
below the international
benchmark
April
Listing
Small and medium companies paying
a very low price and big companies
paying a high price
Increase in the lower price paid
by the listed companies; end of
exception for some categories of
issuers
2009
Market
Access
Free access for seat members
New policy according to the kind
of service being provided
2009
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29
BM&F Bovespa Investor Relations
Web page: www.bmfbovespa.com.br/ri
Phone numbers: 55 11 3119 2007/ 3728 / 3729 / 3734
E-mail:
ri@bmfbovespa.com.br