Professional Documents
Culture Documents
Growth story
May 2013
1
HISTORY, BUSINESS MODEL AND CORPORATE GOVERNANCE BRAZILIAN MARKET OPPORTUNITIES MAIN GROWTH INITIATIVES OPERATIONAL PERFORMANCE
FINANCIAL HIGHLIGHTS APPENDIX (includes results for 1Q13)
HISTORY, BUSINESS MODEL AND CORPORATE GOVERNANCE Safety, resilience and transparency
History of BM&FBOVESPA
Important global exchange
1890: Foundation of Bolsa Livre (BOVESPA's predecessor) 1967: BOVESPAs Mutualization Aug 2007: BOVESPA Hld demutualization Oct 2007: BOVESPA Hld IPO (BOVH3)
May 2008: integration between BM&F and BOVESPA Hld and creation of BM&FBOVESPA (BVMF3)
exchange
70.7% 58.1% 63.0% 56.6% 60.7% 26.2%
66.6%
20.3
19.4
13.7
BVMF
11.8
ICE
11.5
Deutsche Boerse
9.4
Nyse Euronext
6.8
ASX
6.7
SGX
5.6
LSE
4.9
Nasdaq
Oper. Margin (2012)
2.8
TMX
2.3
BME
CME
HKEx
Integrated (Derivatives)
12M to Jun. 30, 2012. 12M to Mar 31, 2012. 9M to Sep. 30, 2012. Source: Bloomberg (Apr. 30, 2013).
PRE-TRADING
Risk Analysis Access
TRADING
Risk Analysis (DMA) Trade Allocation Transfer
POST-TRADE
Clearing/risk analysis Position/ Auxiliary Settlement Collateral Depository Services
Vertically integrated
Trading Platform: equities, derivatives, government and
Trading DTCC
Brokers A and B Brokers A and B Broker A Broker B
Post trade
CCP SSS CSD
Investors Investors Investors Investors
Model 100% vertical: clearing, settlement and central depository at the final beneficial owner level Brokers settle positions and control their clients portfolios through BM&FBOVESPAs infrastructure (impact on post-trade fees)
Regulations prohibit internalization of orders, dark pools and ATS/MTFs and simultaneous exchange/OTC equities trading Settlement and clearing of equities trading must be done through a CCP Settlement and clearing at the final beneficial owner level make the Brazilian market safer and more resilient
Trading
Under the prevailing regulations, potential competitors must provide an integrated solution with the same status regarding rules and transparency In Brazil the final investor pays the exchange: compared to other markets we have a competitive all-in-cost, as BM&FBOVESPA provides more services than other exchanges Naked access is not allowed Naked short selling is not possible
8
Post-Trade
Corporate Governance
Multidisciplinary knowledge in conducting business
BOARD OF DIRECTORS
Pedro Parente (Chairman) Independent Director, CEO of Bunge Brasil Marcelo Trindade (Vice Chairman) Independent Director, lawyer Alfredo Antnio Lima de Menezes Non Executive Director, Executive Officer do Bradesco Andr Esteves Non Executive Director, CEO of BTG Pactual Candido Bracher Non Executive Director, CEO of Ita BBA Charles Carey Independent Director, Director of CME Group Claudio Haddad Independent Director, engineer and teacher Jos Berenguer Neto Non Executive Director, CEO of JP Morgan Brazil
EXECUTIVE OFFICERS
Edemir Pinto CEO Eduardo Guardia Chief Product / IRO Ccero Vieira COO Daniel Sonder CFO Luis Furtado CIO
COMMITTEES
Audit Committee Nominations and Corporate Governance Committee Compensation Committee Risk Committee Advisory Committee For The Securities Intermediation Industry
Ownership structure
Widely-held shareholder base
75.5%
Treasury stock
GM of 03/27/2012 Number of individual shareholders Number of institutional shareholders Total number of shareholders Free float (ON) 64,355 3,530 67,885 1,926,291,202 (97.3%) 10
11
lower interest rates => opportunity for diversification with investments in equities from institutional investors
188%
128%
27.4%
6.3%
Brasil
105%
4.5%
2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012
Japo
Reino Unido
EUA
Source : World Bank; IBGE; Ipea, BCB and BM&FBOVESPA. * For Brazil, considers only bank credit.
12
Capital Market
Great opportunities in the equities and derivatives segments
NUMBER OF CUSTODY ACCOUNTS (thousand)
Number of retail investors represents only 0.3% of the population (lower than global average) Apr'13 613.6
INVESTMENT FUNDS
Funds AUM evolution (in BRL billion). Global average of 40% for equities
2,189
Equities
Fixed Income
Jan'05 128.6
657 11%
861 10%
899 11%
1,703 1,787 1,513 1,375 18% 18% 1,301 1,070 15% 22% 14% 11%
1,925 15%
14%
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Jul-05
Jul-06
Jul-07
Jul-08
Jul-09
Jul-10
Jul-11
Jul-12
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
LISTED COMPANIES
Lower number of listed companies in comparison with other countries
6,856
PENSION FUNDS
Participation of equities in the portfolio of pension funds
538
33%
574
30%
619
29%
436
4,916 4,041 3,972 3,481 3,200 2,767 2,056 1,784 364
India USA China/HK Canada Japan Spain UK Australia Korea Brazil
168
28%
216
29%
256
30%
295
31%
352
33%
419
28%
492
33%
37%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Fixed Income and Others Equity
13
2.13
1.73
1.11
2.12
1.63
0.93
0.62 0.32
0.86
0.46
0.96
0.64 0.85
0.62
CAGR: -20%
0.49
0.40
1T08
1T09
1T10
1st-4th Maturity
1T11
5th Maturity Total
1T12
1T13
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
14
BM&FBOVESPA
Well positioned to capture and generate growth
Falling interest rates Significant investments in technology and the quest for greater efficiency (cost control)
External Factors
Operating Leverage
15
MAIN GROWTH INITIATIVES Investments, new products and focus on the customer
16
Strategic projects
Building a new one-stop-shop exchange
PUMA Trading System - Multi-Asset Class Platform
State-of-the-art trading technology, developed in partnership with the CME Group, with technological independence Derivatives module : successfully implemented in 3Q11 Equities module: successfully implemented in Apr-13 Over-the-counter and Fixed Income Platforms New platforms have been developed to offer greater flexibility, quality and agility to our customers Registration platform: registration of fixed income instruments (initially CBD and LCI) OTC derivatives: registration of financial derivatives (initially, non-deliverable forward contracts, or NDFs), developed with the Calypso Technology Company Trading of corporate bonds: developing new platform for secondary market and change the pricing policy Clearinghouses integration
Creating an integrated clearinghouse, which will consolidate the activities of the four current clearinghouses: equities and corporate debt, derivatives, foreign exchange and securities
Licensing of TRADExpress Real Time Clearing system, developed in partnership with Swedish firm Cinnober (with right of access to source code) Integrated tests with the market and the beginning of the deployment of new systems planned 1Q14 (derivatives) and end 2014 (equities)
17
Clearinghouses Integration
Further differentiation in BM&FBOVESPA post-trade
Equities and corporate debt (BRL 98 bn*)
Equities, ETFs and corporate fixed income cash market Equity and indices derivatives (options and forward)
FX (BRL 5 bn*)
FX spot market (US$ vs. BRL )
Securities lending
INTEGRATED CLEARINGHOUSE**
=
Capital efficiency
* Aggregate of pledged collateral at our clearinghouses totaled BRL 206,0 billion in Mar. 31, 2012. **IPN/CORE implementation requires the authorization of the regulators.
18
Securities Lending
+51.8%
CAGR(09-13):
CAGR (09-13):
+38.0%
+153.1%
74.0 48.8
46.0
12.7 20.5
30.2
31.9
3.7
2011
14.6
2012 2013*
2009
2009
2010
2011
2012
2013*
ETFs
(ADTV in BRL million)
CAGR (09-13):
CAGR (09-13):
+52.6%
+35.5%
101.0
2.9
3.9 2010 6.1
9.0
9.8
18.6 2009
2013*
2009
2011
2012
2013*
2011
19
20
BOVESPA Segment
Operational highlights
AVERAGE DAILY TRADING VOLUME ADTV (BRL billion)
8.3 6.3
7.0 7.3
7.4
8.2
6.0
7.2
8.4
6.7 6.6
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Jan-12 Feb-12 Mar-12 Apr-12 May- Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 12
1.83
29.4%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
*Updated to Mar. 28, 2013. **Ratio of cash market trading volume to the market cap of the exchange.
21
29.3% 69.4%
40.1%
Jul-12
Aug-12
Apr-12
Oct-12
May-12
Nov-12
Feb-12
Sep-12
Mar-12
Feb-13
Mar-13
Dec-12
Apr-13
Jan-12
Jun-12
Jan-13
2003
2004
2005
2006
2007
2008
2009
2010
2011
1996
1997
1998
1999
2000
2001
2002
Source: Bloomberg (in USD traded value of 35 companies with ADRs programs )
2001 14 14 -
2002 1 5 6 -
2003 8 8 -
2004 7 8 15 2
2005 9 10 19 1
2006 26 16 42 1
2007 64 12 76 -
2008 4 8 12 -
2009 6 18 24 1
2010 11 11 22 -
2011 11 11 22 -
2012 3 9 12 -
2013* 6 4 10 -
BM&F Segment
Operational highlights
AVERAGE DAILY TRADED VOLUME ADV (thousands of contracts)
3,198
331 114 481
2,497
308 205 509
2,994
385 245 593
2,856 3,518
350 158 520
3,658 2,410
341 100 491 352 145 468
805
187 86 110 422 2004
852
109 74 168 501 2005
1,167
124 68 266 711 2006
191 89 541
143 494
3,904 2,590 2,819 2,630 2,626 2,971 322 340 2,653 362
106 485 345 137 425
355 111 451
123 327
331 99 476
113 547
1,452 2,061
1,561
2,630
2010
2011
2012 2013*
Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13
FX (Thousands)
Index (Thousands)
Others (Thousands)
Total RPC 1,247 1,224 1,527 1,365 1,134 1,106 1,191 1,182 *Updated until 04/30/2013.
23
10% 36%
27%
8% 40%
9% 41%
7% 43%
9% 42%
32% 18%
33% 16%
35%
17%
33% 16%
32% 18%
32% 15%
25%
2005
2006
2007
2008
2009
2010
2011
2012
2013
Jan-13
Feb-13
Mar-13
Apr-13
Individuals
Institutional Investors
Foreign Investors
Financial Institutions
Companies
Others
8%
23% 19%
8% 24% 20%
4% 30% 22%
4%
4%
4%
3%
4% 38%
4% 37%
38%
41%
25%
29%
56%
51%
49%
48%
45%
42%
2005
2006
2007
2008
2009
2010
2011
Feb-13
Individuals
Institutional Investors
Foreign Investors
Financial Institutions
Companies
Central Bank
24
25
Income Statement
History
SUMMARY OF INCOME STATEMENT (CONSOLIDATED)
2009
1,510,569 (569,832)
(446,677)
2010
1,898,742 (633,504)
(543,881)
2011
1,904,684 (816,664)
(584,521)
2012
2,064,750 (763,080)
(563,487)
Operating income Operating margin Equity method result Financial result Income before taxation of profit Income tax and social contribution Net income*
Adjusted net income
0.6104
0.7929
0.7932
0.8351
26
18.7%
18.6% 2.5%
29.5%
6.7%
46.4%
12.3%
37.1% 5.7%
13.5%
Cash Market (Post-Trading) Equities Derivatives (Trad. and post-trad.) Financial Derivatives (Trad. and post-trad.)
Other Revenues
4.5%: Depository, Custody and Back-Office 3.4%: Securities Lending 3.0%: Vendors 2.3%: Trading Access (Brokers) 2.0%: Listing
Personnel
Data processing
560-580
544
585 2011
2010
CAPEX
2013 Budget: BRL 260 million-290 million 2014 Budget: BRL 170 million-200 million
Investments close to BRL 1.2 billion between 2010 and 2014 in several projects
170-200
204 2011
Adjusted by depreciation, stock option program, tax on dividends from CME Group and provisions. Expenses growth considering the mid-point budget for 2013 (BRL 570 million) and inflation CAGR (2010-2013) of the inflation is 5.8% p.a. Source: BCB Focus Bulletin (Nov. 30, 2012) - estimated IPCA .
Growth Path
Growth in business and results
GROWTH IN ADJUSTED EARNINGS PER SHARE
(in BRL)
29
Financial Highlights
Focus on cash generation and total shareholder return
HISTORY OF PROCEEDS
(in BRL million)
705
274 432 2009
Dividends
1,224 881
1,586 1,145
1,579
1,546 1,048
1,518 606 912
2011
Buyback
1,612 1,074
1,091 16 1,074
2012
780 75 705
2009
435 1,145
2010
Total payout
*Dividend Yield is the result of the sum of earnings per share distributed during the year divided by the average share price during the year.
30
APPENDIX
31
Goodwill 11/30 Competition BRL 13.01 News 01/05 BRL 13.10 Lower volume estimates by the market
Rumors about IOF Exchange Mergers BATs 02/15 02/08 BRL 11.43New IOF on BRL 11.18 Derivatives 07/26 BRL 9.55
0 1 g u A
0 1 p e S
0 1 t c O
0 1 v o N
0 1 c e D
1 1 n a J
1 1 b e F
1 1 r a M
1 1 r p A
1 1 y a M
1 1 n u J
1 1 l u J
1 1 t c O
1 1 v o N
1 1 c e D
2 1 n a J
2 1 r a M
2 1 r p A
2 1 y a M
2 1 n u J
2 1 l u J
2 1 g u A
2 1 p e S
2 1 t c O
2 1 v o N
2 1 c e D
3 1 n a J
3 1 b e F
BM&FBOVESPA
IBOVESPA
32
BOVESPA Segment
Raising Capital
PUBLIC OFFERINGS (BRL billion)
Updated to Apr. 30, 2013.
Follow-On
IPO
74.4
11.2
30.4 8.8
4.5 4.3
55.6
13.9
5.4 8.5
15.4 15.1
63.2
18.0
7.2 10.8
13.2
3.9 9.3
15.5
13.2 2.2
2004
2005
2006
2007
2008
2009
2010*
2011
2012
2013
PIPELINE: OFFERINGS ANNOUNCED SO FAR TO THE MARKET There are 3 offerings in the pipeline:
IPOs (2): AutoBrasil Participaes; Votorantim Cimentos. Subsequentes (1): Tupy.
Additionally, there are 20 Real Estate Funds filed with CVM: estimated value of BRL 3.4 billion
* Excludes the portion acquired by the Brazilian government in the Petrobras offering, via the transfer of rights in barrels (BRL 74.8 billion).
33
BOVESPA Segment
Foreign investment flow
MONTHLY NET FLOW OF FOREGIN INVESTMENTS (in BRL billon)
Includes public offering (primary market) and regular trades (secondary market).
3.7 3.5
1.5 0.3
5.1 5.0 3.4 1.9 2.2 2.9 0.8 1.0 0.3 (2.3) 0.71.1 0.8
2.7
1.6 1.6
(1.6)
(1.5)
(0.6)
(1.3)
(0.2) (0.4)
(1.2) (4.2)
34
BOVESPA Segment
Potencial to increase the number of listed companies
MARKET CAPITALIZATION TO GDP (%)*
177% 174% 158% 129% 137% 126% 110% 136% 121% 119% 109% 109% 104%
2009
2010
2011
Hong Kong :
129%
107% 100% 89% 87% 67% 75% 60% 75% 76% 57% 87% 96%
438%
481%
365%
138% 129%
100%
72% 72%
55% 50% 49%
80%
46%
39%
44% 35%
Singapore
Canada
Chile
USA
Korea
Australia
Japan
France
India
Brazil
UK
China
Mexico
Dec12
11.2% 26.8% 14.3%
11.5% 21.6%
2.5%
35
10.3%
7.4%
1,329
8.5%
9.4% 1,454
9.8%
9.9%
10.6%
9.5% 1,708
358
1,312
146
814
205
899
184
175
1,199
325 874
-
1,369
252
1.044
74
1,404
341
1,592
369
268
319 835
249
917
296 927
246
291
319
267 447
1.103
1Q11
2Q11
3Q11
ADTV (Foreigners)
4Q11
1Q12
ADTV (Individuals)
2Q12
3Q12
4Q12
% of overall market
1Q13
2Q13*
ADTV (Institutionals)
7.8% 420
7.3%
8.0%
6.3%
6.7%
5.7%
5.0%
5.1% 363
63 65 236
211
44 67 84
251
45 101 95
68 148 179
342
51 120
413
47 129 135
404
65 137 193
342
58 74
307
53 45
292
48 53
191
146
209
209
1Q11
*Only Apr-13.
2Q11
3Q11
Mini
4Q11
Fx
1Q12
2Q12
Equities
3Q12
Other
4Q12
% of overall ADV
1Q13
2Q13*
36
Regulatory Framework
STOCK EXCHANGE ACTIVITY
CVM Instruction 461 of Oct. 23, 2007
CLEARINGHOUSES ACTIVITIES
Law 10.214 of Mar. 27, 2001
Clearinghouses considered systemically important by the BCB should ensure settlement (i.e., act as CCPs)
Regulates the security markets and decides on the formation, organization, operation and dissolution of stock exchanges, futures and commodities exchanges and OTC markets Establishes the organization and minimal corporate governance structure of organized market management bodies Establishes self-regulation activities of the in the organized market management bodies
37
Organizational chart
Monitor 100% of the participants transactions Assess 100% of intermediaries Enforcement Education
Atribuies da BSM estabelecidas na BSM Instruo duties established in CVM Instruction CVM 461/2007:
461/2007
Monitor and supervise transactions in the organized markets Determine deficient compliance with the rules and norms Monitor the activities of the Stock Exchange Initiate and prosecute disciplinary administrative legal proceedings Apply penalities
Self regulation Officer
Strategic Committee
Audit
Market supervision
Legal dept.
* 9 independent
Goal
Encourage and promote the sustainable development of BM&FBOVESPA and the capital market, involving all publics, including investors, companies and brokerage houses.
39
4. Stakeholder Engagement
Instituto BM&FBOVESPA Stakeholders Global Compact Signatory (worlds 1st exchange) PRI Signatory (Principles for Responsible Investment) Organization Stakeholder GRI (Global Reporting Initiative); Member of Board for GRI Brazil
2. Governance
Novo Mercado Advisory Committees Sustainability Committee Sustainability Commission
40
41
OPERATIONAL HIGHLIGHTS
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$40.0 billion)
Excludes stock options plan, depreciation, provisions and tax on dividends from CME Group. Excludes deferred liability recognized in correlation with temporary differences from amortization of goodwill for tax purposes, the impact of the stock options plan, the investment in associate (CME Group) accounted under the equity method of accounting, net of taxes related to dividends and taxes paid overseas to be compensated. 3IPN/CORE implementation requires the authorization of the regulators.
1Q13 vs. 1Q12: -3.4% Decrease in the options margin (market maker) and derivatives participation in the total volume
43
1.8
1.9
2.1
1.3
(78%)
1.4
(86%)
1.8
(84%)
1.6
( 90%)
(71%)
0.4 1Q12
0.3 2Q12
0.2 3Q12
0.6 4Q12
4th-5th Maturity
0.3
1Q13
1st-3rd Maturity
44
17.7%
30.1%
4.9%
4.7%: Depository, Custody and Back-Office 4.2%: Securities Lending 2.9%: Vendors 2.3%: Trading Access (Brokers) 2.0%: Listing 1.6%: Others
Revenue breakdown for cash equities (trade + post-trade) do not reflect the pricing policy changes announced in Mar-13, into effect only In Apr-13: i) Reduction of trading fees to 0.5 bps from 0.7 bps for all investors ii) Post-trade fees increase to 2.0 bps from 1.8 bps for institutional investors and day traders
45
1Q13 Expenses
Focus on cost control and operational efficiency
TOTAL EXPENSES BREAKDOWN ADJUSTED EXPENSES
(in R$ millions)
4,0
1.0
(1.8)
(0.6)
(2.2)
(1.8)
125.4
124.0
1Q12 Adj. Personnel Data proc. Third Party Commun. Marketing Others* Exp.
*Include expenses with maintenance in general, taxes adjusted by the dividends from CME Group, board and committee members compensation and others (excluding provisions).
46
1Q13 521.0
1Q12 502.8
4Q12 499.2
Expenses
Operating Income Operating margin Financial Income EBT Net Income* Adjusted Net Income Adjusted EPS (in R$) Adjusted Expenses
(172.8)
348.2 66.8% 37.1 422.5 267.0 394.6 0.204 (124.0)
(166.2)
336.7 67.0% 65.5 439.7 280.4 409.2 0.212 (125.4)
4.0%
3.4% -12 bps -43.4% -3.9% -4.8% -3.6% -3.8% -1.1%
(256.0)
243.1 48.7% 43.1 318.4 217.3 379.4 0.196 (174.2)
-32.5%
43.2% 1,812 bps -13.9% 32.7% 22.9% 4.0% 3.8% -28.8%
47
Financial Highlights
Strong cash position and high payout
CASH AND FINANCIAL INVESTMENTS
(In R$ millions)
FINANCIAL RESULTS
Net financial income was R$37.1 million, 43.4% drop from 1Q13
1Q13
1,041
1,191 1,166 1,443 1,207
348 440
346 350 343 390 340 363 383 354
2,341
1,964 2,100 1,979 1,714 3,658
4,169
3,851 3,999 4,125
Finance results fell 29.1%, reflecting lower interest rates Finance expenses increased 15.0%, mainly due to the depreciation of R$ against US$
4Q12
3Q12 2Q12 1Q12
CAPEX
In 1Q13, investments amounted R$41.8 million Capex budget ranges: 2013: between R$260 290 million 2014: between R$170 200 million
Market participants cash collateral and others* Restricted funds Subsidiaries** Available funds
PAYOUT
Cash position in 1Q13 hit R$2.3 billion, considering: R$388.7 million in dividends related to the 2012, paid in Apr13 Resumption of the shares buyback program in Apr13, when 3.1 million shares was purchased, totaling R$41.2 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$0.111 per share (80% of GAAP net income) Payment on June 7, 2013 based on shareholders position on May 21, 2013.
*Includes collaterals pledged by participants in the form of cash, receivables and rights in securities under custody, as well as payouts still undisbursed. **Includes third party collaterals and restricted funds at BM&FBOVESPA Settlement Bank (Banco BM&FBOVESPA).
48
Growth History
DERIVATIVES
Growth trend of Brazilian Real-denominated interest rate contracts Institutional and foreign investors were the groups with higher growth in trading these contracts, indicating greater sophistication and increasing risk exposure Trading in longer maturities contracts are growing faster
28 63 34 19 43 46
110 87 81 56
52
116 85 82 80
Institutionals
EQUITIES
(ADTV in R$ bn, mkt. cap. in R$ tri, Ibovespa in points and turnover velocity in %)
Turnover Velocity Avg. Mkt. Cap.
63.8% 2.33
64.2% 2.37
70.0% 2.42
71.7% 2.48
Volume growth to a level higher than R$7 billion, despite adverse market conditions Low growth of market capitalization Average Ibovespa 13% below the 2010 level
10 8 6
67,258
6 5 .0 0 0
61,207
59,601
58,813
Turnover Velocity above 70% Foreign and institutional investors, HFTs and products development (ETFs, option and securities lending) driving the turnover velocity increase
49
6 0 .0 0 0
5 5 .0 0 0
5 0 .0 0 0
4 5 .0 0 0
4 0 .0 0 0
6.5
6.5
7.3
7.5 1T13
4 2
3 5 .0 0 0
3 0 .0 0 0
2010
2011
ADTV (R$ billion)
2012
Ibovespa (Average)
Securities Lending
(Average open interest for the period - in R$ billions)
+50.6%
CAGR(09-13):
CAGR (09-13):
+154.1%
73.4
48.8
+37.0%
44.7
12.7 20.5
30.2
31.9
3.7
2011
14.6
2012 2013*
2009
2009
2010
2011
2012
2013*
ETFs
(ADTV in R$ millions)
CAGR (09-13):
CAGR (09-13):
+51.5%
115.9 28.5 2010 48.7 2011 2012 2013* 98.0
+35.5%
9.0 9.8
BM&FBOVESPA has a 65% market share of the amount registered in the market (Mar-13).
18.6 2009
2.9
2009
3.9 2010
6.1
2011
2012
2013*
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Derivatives module
Concluded in 2H11
Equities module
Migration concluded in Apr13
Performance e Capacity Latency reduced to microseconds with lower standard deviation Processing capacity of 200 million messages per day
Features Fully adapted to the characteristics of the Brazilian market Process automation and controls
Availability and Controls More stability and availability to the market Price discovering rules (auctions) Price variation limits (dynamic / static)
Platform for the growth of stock and derivatives markets Attracting new participants (HFT) Expansion of the market maker program to other products/markets
Meets the needs of different market participants More dynamism in trading activity
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 Apr13) 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 (1st announcement in Mar13 for cash equities) Launching of new products (Selic futures in Mar13) Shareholder Return: Payment of at least 80% of GAAP earnings as dividends and share buyback program
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Financial Statements
Balance sheet summary (consolidated)
ASSETS LIABILITIES AND SH. EQUITY
(in R$ millions)
Current assets Cash and cash equivalents Financial investments Others Non-current assets Long-term receivables Financial investments Others Investments Property and equipment Intangible assets Goodwill Total Assets
3/31/2013 12/31/2012
4,011.7 32.8 3,705.5 273.5 20,446.8 659.2 430.8 228.4 2,900.8 355.0 16,531.9 16,064.3 24,458.5 3,536.3 43.6 3,233.4 259.3 20,610.8 808.9 573.6 235.2 2,928.8 361.0 16,512.2 16,064.3 24,147.1
(in R$ millions)
Current liabilities Collateral for transactions Others Non-current liabilities Foreign debt issues Deferred Inc. Tax and Social Contrib. Others Net equity Capital stock Capital reserve Others Minority shareholdings Liabilities and Net Equity
3/31/2013 12/31/2012
1,566.0 981.8 584.3 3,203.1 1,224.3 1,878.6 100.2 19,689.4 2,540.2 16,042.7 1,090.8 15.7 24,458.5 1,660.6 1,134.2 526.4 3,072.6 1,242.2 1,739.6 90.7 19,413.9 2,540.2 16,037.4 820.3 16.0 24,147.1
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Financial Statements
Adjusted net income and adjusted expenses reconciliation
ADJUSTED NET INCOME RECONCILIATION
Change 1Q13/1Q12 -4.8% -6.1% 3.1% 17.2% 0.0% -3.6% Change 1Q13/4Q12 217.3 22.9% 7.9 -0.6% 134.8 3.1% (14.0) 132.9% 15.2 -11.9% 18.2 379.4 4.0%
(in R$ millions) Net Income* Stock options plan Deferred Liabilities Equity method investment (net of taxes) Recoverable taxes paid overseas Provisions - Health Plan (net of taxes) Adjusted net income
* Attributable to BM&FBOVESPA shareholders.
4Q12
(in R$ millions) Total Expenses Depreciation Stock options plan Tax on dividends from the CME Group Provisions
1Q13
1Q12
4Q12
Adjusted Expenses
ir.bmfbovespa.com.br
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