bvmf presentation - august 2013
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BM&FBOVESPAGrowth story
Investor Relations Department August 2013
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Forward Looking Statements
This presentation may contain certain statements that express the managements 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 industriesBM&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 BM&FBOVESPA 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&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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HISTORY, BUSINESS MODEL AND CORPORATE GOVERNANCE
BRAZILIAN MARKET OPPORTUNITIES
MAIN GROWTH INITIATIVES
OPERATIONAL PERFORMANCE
FINANCIAL HIGHLIGHTS
APPENDIX (includes results for 2Q13)
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HISTORY, BUSINESS MODEL AND CORPORATE
GOVERNANCESafety, resilience and transparency
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1890:
Foundation of Bolsa
Livre (BOVESPA's
predecessor)
1986:
Start of
BM&F
activities
Aug 2007:
BOVESPA Hld
demutualization
Sep 2007: BM&F
demutualization
Oct 2007:
BOVESPA Hld
IPO (BOVH3)
Nov 2007:
BM&F IPO
(BMEF3)
May 2008:
integration between BM&F and
BOVESPA Hld and creation of
BM&FBOVESPA (BVMF3)
1967:
BOVESPAs
Mutualization
MARKET CAPITALIZATION (US$ billion) AND OPERATING MARGIN (%)
12M to Jun. 28, 2012. 12M to Mar 31, 2012. 9M to Sep. 30, 2012. Source: Bloomberg (Jul. 31, 2013).
History of BM&FBOVESPAImportant global exchange
24.717.9 13.6 13.3 10.6 10.2 6.5 6.4 6.0 5.4 4.1
2.4 2,3
58.1%
70.7%
60.7% 56.6%63.0%
26.2%
72.4% 56.2%
53.5%
41.5%
56.3%
34.9%
66,6%
CME HKEx Deutsche
Boerse
ICE BVMF Nyse
Euronext
LSE SGX ASX Nasdaq Moscow
Exchange
TMX BME
Oper. Margin (2012)Diversi fiedand integrated Integrated (Derivatives) Diversi fied but not integrated
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PRE-TRADING TRADING POST-TRADE
Access TradeAllocation
Transfer
Clearing/risk
analysis
Position/
CollateralDepository
Auxiliary
Services
VALUE CHAIN
Vertically integrated
Trading Platform: equities, derivatives, government and
corporate bonds, funds, spot FX, among others
Post-Trade Platform:
Central Counterparty (CCP) : An entity that interposes itself
between operations or contracts, becoming the guarantor of all
business
Settlement System (SSS): system that allows the transfer of
securities or assets from investors, in which the transfer may be
free or against payment
Central Depository (CSD): performs centralized asset custody and
treatment of corporate actions (dividends, stock splits, etc.)
Services for issuers and brokers Listing (stocks, funds, corporate bonds,
securitization, among other)
Trading access (brokers)
Securities Lending
Custody for clubs and foreign investors
(2.689 account)
Market Data (vendors)
Indices Licensing
Software Licensing
OTC (derivatives and fixed income)
Commodities certification
Vertical model as a differentialValue gained across most of the chain
SettlementRisk Analysis
(DMA)Risk Analysis
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DTCC
BRAZIL
(Internalization of orders is forbidden)
US
(Internalization of orders is allowed)
Post tradeCCP
SSS
CSD
Trading
Brokers
A and B
Investors Investors
Brokers A and B
Investors Investors
Broker
A
Broker
B
Model 100% vertical: clearing, settlementand central depository at the final beneficial
owner level
Brokers settle positions and control theirclients portfolios through BM&FBOVESPAs
infrastructure (impact on post-trade fees)
Clearing, settlement and custody occur at thebrokerage houses
Each prime broker has its own structure tocontrol its customers portfolios and settle
positions (impact on the prime brokers costs)
Trading Venues
Vertical model as a differentialBM&FBOVESPA present at all post-trade stages
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Brokerage
houses &
investors
Trading
Post-Trade
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
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
Brazilian market regulatory frameworkResilience and safety as priorities
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EXECUTIVE OFFICERSBOARD OF DIRECTORS
COMMITTEES
Edemir PintoCEO
Luis Furtado
CIO
Ccero Vieira
COO
Daniel Sonder
CFO
Eduardo Guardia
Chief Product / IRO
Audit Committee
Risk Committee
Nominations and Corporate Governance Committee
Compensation Committee
Corporate GovernanceMultidisciplinary knowledge in conducting business
Charles Carey
Independent Director, Director of CME Group
Jos Roberto Mendona de Barros
Independent Director, economist and professor
Pedro Parente (Chairman)Independent Director, CEO of Bunge Brasil
Marcelo Trindade (Vice Chairman)
Independent Director, lawyer
Claudio Haddad
Independent Director, engineer and professor
Andr Esteves
Non Executive Director, CEO of BTG Pactual
Alfredo Antnio Lima de Menezes
Non Executive Director, Executive Officer of Bradesco
Luiz Fernando Figueiredo
Independent Director, Co-Founder of Mau Investments
Luiz Nelson Guedes De Carvalho
Independent Director, professor
Candido Bracher
Non Executive Director, CEO of Ita BBA
Jos Berenguer Neto
Non Executive Director, CEO of JP Morgan Brazil
Advisory Committee For The Securities Intermediation Industry
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GM of 04/15/2012
Number of individual shareholders 55,108
Number of institutional shareholders 3,580
Total number of shareholders 58,688
Free float (ON) 1,929,265,010 (97.4%)
Ownership structureWidely-held shareholder base
5.3%5.2%
5.1%
6.6%
75.5%
2.4%Funds managed by BlackRock, Inc.
Funds managed by OppenheimerFunds, Inc.
CMEG Brasil I Participaes Ltda.
Funds managed by Vontobel Asset Management Inc.
Other
Treasury stock
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Opportunities in the Brazilian marketBM&FBOVESPA prepared to capture future growth
Source : Central Bank of Brazil and World Bank. * For Brazil, considers only bank credit.
GROWTH DRIVES
EQUITIES MARKET
lower interest rates => opportunity for diversification with investmentsin equities from institutional investors
more resources being directed into equities
more listed companies
DERIVATIVES MARKET
more credit and more in fixed-rate government debt => more demand
for hedging from financial institutions lower interest rates=> longer maturities of traded contracts
more foreign trade => higher volumes in FX contracts
stock market growth, the launch and development of ETFs and moreexposure to equity among institutional investors =>growth in Index-basedcontractsCAPITAL MARKETS WILL HAVE
CENTRAL ROLE IN THE COMING YEARS
Investmentneeded topromotegrowth
Nationalsavings still
highlyconcentrated
in fixedincome
Interest ratesat the lowest
in history
Total Credit/GDP Evolution in Brazil (%) Selic Interest Rate (% p.a.). Jan-07 to Jun-13
27.4%
55.2%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
13.2511.25
13.75
8.7510.75 11.00
7.25 8.50
2007 2008 2009 2010 2011 2012 2013
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Capital MarketGreat opportunities in the equities and derivatives segments
Funds AUM evolution (in BRL billion). Global average of 40% for
equities
LISTED COMPANIES
Source : BM&FBOVESPA, ANBIMA , WFE (Dec-12) and ABRAPP.
INVESTMENT FUNDSNUMBER OF CUSTODY ACCOUNTS (thousand)
PENSION FUNDS
Number of retail investors represents only 0.3% of the
population (lower than global average)
Lower number of listed companies in comparison withother countries
Participation of equities in the portfolio of pension funds
6,856
4,916
4,041 3,9723,481 3,200
2,7672,056 1,784
364
India USA China/HK Canada Japan Spain UK Australia Korea Brazil
657861 899
1,0701,301
1,5131,375
1,703 1,7871,925
2,189 2,266
11%
10% 11%11%
15%22% 14%
18% 18%15%
14% 14%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q13
Equities
Fixed Income
168216 256
295352
436 419492
538 574619
28%29% 30%
31%33% 37% 28%
33%33%
30%29%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Fixed Income and Others
Equity
Jan'05
128.6
Jul'13
659.3
Jan-0
5
Jul-05
Jan-0
6
Jul-06
Jan-0
7
Jul-07
Jan-0
8
Jul-08
Jan-0
9
Jul-09
Jan-1
0
Jul-10
Jan-1
1
Jul-11
Jan-1
2
Jul-12
Jan-1
3
Jul-13
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STOCK OF FIXED-RATE CREDIT (BRL billion) PUBLIC DEBT / FIXED RATE (BRL billion)
Source: Central Bank of Brazil
Interest Rate Contracts in Brazilian RealsStructural changes behind the growth in volumes
more credit increases the banks demand for financialderivatives on BM&FBOVESPA
more fixed-rate debt increases banks andinstitutional investors demand for futurescontracts on BM&FBOVESPA
INTEREST RATES IN BRL: ADV PER CONTRACT MONTH (million contracts)
longer maturities of contracts
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12
Jan'05:
BRL 180.0
Dec'12:
BRL 850.9
CAGR: -1%
CAGR: +30%
CAGR: +16%
0.33 0.48
0.860.94
0.47
0.840.62 0.47
0.78 0.78
1.79 1.71
0.95 0.96
1.64 1.72
2.26 2.55
2Q08 2Q09 2Q10 2Q11 2Q12 2Q13
1st-4th Maturity 5th Maturity Total
Mar-05Mar-06Mar-07Mar-08Mar-09Mar-10Mar-11Mar-12Mar-13
Jan'05:
BRL 151.4 bn
Jul'13:
BRL 780.5 bn
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Operating
Leverage
Significant investments
in technology and the
quest for greaterefficiency (cost control)
Strengthening of
regulatory and
institutional
structure
Focus on clients:
development of
markets and products
Falling interest rates
Strong need for
investments to
promote growth
Investments
portfolios still
concentrated in highliquidity fixed
income products
High Potential
for Revenue
Growth
Sustainable Results
(Maximization of Shareholders Return)
External
Factors
BM&FBOVESPA
Strategic
Focus
BM&FBOVESPAWell positioned to capture and generate growth
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MAIN GROWTH INITIATIVES
Investments, new products and focus on thecustomer
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Update of strategic projects
*IPN/CORE implementation requires the authorization of the regulators.
PUMA Trading System - Multi-Asset Trading Platform A high-performance, high-speed and high-capacity electronic trading platform
RTT (Round Trip Time) of less than one millisecond
Derivatives and FX module: implemented in Oct/11
Equities module: implemented in Apr/13
Clearinghouses integration The integration of BM&FBOVESPAs clearinghouses will enhance the Companys competitive position
Development of the new risk architecture (CloseOut Risk Evaluation - CORE)* will increase allocation
efficiency for clients
Tests for derivatives started in Jul/13, with conclusion scheduled for Mar/14
iBalco OTC Registration Platform Registration of OTC derivatives and fixed income securities
Deployment in Jul/13 (for FX non-deliverable forward no central counterparty)
Pricing Policy Changes for Cash Equities First phase (Apr/13): reduction from 0.7 bps to 0.5 bps in trading fees and a realignment between the
trading fees and post-trade fees of institutional investors and day traders
Second phase (Dec/13): increased discounts per tier of volume for day traders and a progressive reductionof trading fees per tier of global volume
Initiatives for Small and Medium Enterprises (SMEs) Establishment of the Technical Committee for Smaller Offerings composed of private sector and
government agencies
Developing proposals to facilitate capital raising through issuance of shares (incentives to SMEs, investors
and intermediaries)
Project was presented to the Ministry of Finance in Jul/13
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BM&FBOVESPA IT DevelopmentsBuilding a world-class IT platform
Increasing competitive differentiation for derivative andcash equity markets
Latency
BM&F Segment (derivatives) BOVESPA Segment (equities)
70
2520
10-15~1 ~1
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BM&FBOVESPA Product DevelopmentUpdating the OTC and Fixed Income platforms
Certification phase (integrated test with the market) of NDFs in Calypso platform started in Feb13
Deployment in 1Q13
Developments that should be concluded over the next 18 months
Derivatives Fixed income
Registratio
n
NDFs
Swaps
Flexible options
Exotic derivatives
Continuous development of the Calypsoplatform and introduction of new features
LCAs (improvements)LCIs and CDBs (adaptation of the platform
pending regulatory approval)
Trading
-
Trading platform for government andcorporate bonds
Fixed income ETFs (pending regulatoryapproval)
Changes in the fee policy
Changes in the securities listing procedures
and rules
Cl i h I i
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Clearinghouses IntegrationFurther differentiation in BM&FBOVESPA post-trade
Equities and corporate
debt (BRL 85.2 bn*)
Equities, ETFs andcorporate fixed incomecash market
Equity and indicesderivatives (options andforward)
Securities lending
Derivatives
(BRL 111.2 bn*)
Financial andcommodities derivatives(futures, options andforwards)
OTC derivatives
FX
(BRL 4.8 bn*)
FX spot market
(US$ vs. BRL )
Securities
(BRL 1.0 bn*)
Cash market andforward market forgovernment bonds
INTEGRATED CLEARINGHOUSE**=
Capital efficiency
* Aggregate of pledged collateral at our clearinghouses totaled BRL 202.2 billion in Jun. 30, 2013. **IPN/CORE implementation requires the authorization of the regulators.
i h h d
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0.9 1.53.7
14.6
37.6
2009 2010 2011 2012 2013*
12.720.5
30.2 31.944.1
2009 2010 2011 2012 2013*
18.6 28.548.7
115.9 106.4
2009 2010 2011 2012 2013*
2.9 3.96.1
9.0 9.7
2009 2010 2011 2012 2013*
48.8
75.6
ADTV before
Market Maker
ADTV after
Market Maker*
Securities LendingReal Estate Funds (FIIs)Options with Market Maker
(Open Interest - average for the period - in BRL billion)
Initiatives to develop and prompt higher volume in certain products;
Performance shows that the initiatives are being well received by the market.
ETFs Brazilian Treasury Direct - Tesouro Direto Agribusiness Credit Bills
(ADTV in BRL million)
+55.0%
(ADTV in BRL million)
(ADTV in BRL million) (Custodyin BRL billion)
High growth productsGrowing sophistication of market participants
BM&FBOVESPA has a 66% marketshare of the registered AUM (Mar-13).
CAGR(09-13):
+152.0%
CAGR (09-13):
+36.5%
CAGR (09-13):
+54.6%
CAGR (09-13):
+35.2%
*Updated to Jul. 31, 2013.
(AUM in BRL billion)
3.6 20.0
43.7
2011 2012 Jul-13
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OPERATIONAL PERFORMANCE
Records in 2013
BOVESPA S
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BOVESPA SegmentOperational highlights
*Updated to Jul 31, 2013. **Ratio of cash market trading volume to the market cap of the exchange.
AVERAGE DAILY TRADING VOLUME ADTV (BRL billion)
AVERAGE ANNUAL MARKET CAP(BRL trillion) TURNOVER VELOCITY** (12 months average)
1.6 2.4
4.9 5.5 5.36.5 6.5 7.3
7.6 8.26.0
7.28.4
6.7 6.6
7.9
7.3 7.8 7.4 8.2 7.78.9
6.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13
30.8%
29.4%
36.8%37.6%38.7%42.3%
56.4%
63.2%
66.6%
63.8%
64.2%
70.0% 72.6%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0.720.94
1.31
1.98 2.031.83
2.33 2.37 2.42 2.41
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*
T di i ADR f B ili i
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Trading in ADRs of Brazilian companiesLiquidity Migration Process Interrupted
Jul13
Source: Bloomberg (in USD
traded value of 35 companies
with ADRs programs )
Sarbanes-Oxley Act(Jul. 2002)
*Updated to Jul. 31, 2013.
Novo Mercado
Launch
(Dec. 2000)
PUBLIC OFFERINGS IN NUMBER OF COMPANIES
End of IOF Tax (2%) for
foreign investors
(Dec. 2011)
End of CPMF
(Financial
Transaction Tax)
33.7%
30.2%
12.0%
24.1%
36.1%
63.9%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total
IPOs - 1 - 7 9 26 64 4 6 11 11 3 7 149
Follow ons 14 5 8 8 10 16 12 8 18 11 11 9 5 135
Total 14 6 8 15 19 42 76 12 24 22 22 12 112 284
Dual Listings - - - 2 1 1 - - 1 - - - - 5
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Jan-1
2
Feb-1
2
Mar-12
Apr-12
May-1
2
Jun-1
2
Jul-12
Aug-1
2
Sep-1
2
Oct-12
Nov-1
2
Dec-1
2
Jan-1
3
Feb-1
3
Mar-13
Apr-13
May-1
3
Jun-1
3
Jun-1
3
Other USA Venues - Brazilian ADRs NYSE - Brazilian ADRsBM&FBOVESPA - companies with ADRs BM&FBOVESPA (except companies with ADRs)
BM&F S t
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BM&F SegmentOperational highlights
AVERAGE DAILY TRADED VOLUME ADV (thousands of contracts)
REVENUE PER CONTRACT - RPC (BRL)
*Updated to Jul. 31, 2013.
2006 2007 2008 2009 2010 2011 2012 2013* J-12 A-12 S-12 O-12 N-12 D-12 J-13 F-13 M-13 A-13 M-13 J-13 J-13
Interest rates i n BRL 0.906 0.950 1.141 0.979 0.889 0.918 1.004 0.989 1.026 1.076 1.130 0.924 1.044 1.037 1.032 1.013 1.037 0.945 0.843 1.099 1.067
FX rates 2.244 1.859 2.065 2.161 1.928 1.894 2.205 2.416 2.325 2.453 2.481 2.506 2.370 2.453 2.368 2.305 2.273 2.292 2.347 2.590 2.691
Stock Indices 1.419 1.501 2.145 1.620 1.564 1.614 1.524 1.698 1.403 1.750 1.407 1.752 1.400 1.981 1.547 1.974 1.413 1.846 1.408 1.867 1.590
Interest rates i n USD 1.094 0.965 1.283 1.357 1.142 0.941 1.015 1.152 1.143 1.027 1.086 1.024 1.164 1.152 1.073 1.140 1.121 1.093 0.928 1.280 1.370
Commodities 4.749 3.195 3.587 2.307 2.168 2.029 2.239 2.490 2.014 2.270 2.840 2.680 2.485 3.360 2.449 2.415 2.382 2.349 2.550 2.595 2.632
Mini contracts 0.034 0.054 0.162 0.176 0.128 0.129 0.116 0.118 0.111 0.110 0.109 0.112 0.107 0.112 0.120 0.122 0.119 0.118 0.116 0.119 0.114
OTC 1.571 2.111 2.355 1.655 1.610 1.635 1.769 1.594 1.523 2.693 1.139 1.738 1.711 2.475 1.988 2.868 1.642 1.460 1.428 1.418 1.839
Total RPC 1.247 1.224 1.527 1.365 1.134 1.106 1.191 1.194 1.222 1.277 1.314 1.098 1.242 1.303 1.266 1.191 1.190 1.114 1.020 1.361 1.320
422 501 711988 789 843
1,684 1,797 1,9262,340
2,.6811,561 1,866
1,723
1,7102,199 1,747 1,856
1,5612,630
2,235 2,6942,994
1,977110 168
266
473535 447
541 496494
511
520485
425 451
327
476 547474
494
491
468507
635
435
86 7468
112 88 80
89 123143
120
158106
137 111123
99113
84
126
100
145105
183
99
187 109124
167162 150
191285
336376
350362
345 355322
331340
290
341
341
352424
495
389
805 852 1,167
1,740 1,573 1,521
2,5052,701
2,8993,210
2,5902,819
2,630 2,6262,971
2,6532,856
2,410
3,5913,166
3,6583,980
3,290
2,443
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13
BRL Int. Rate (Thousands) FX (Thousands) Index (Thousands) Others (Thous ands)
Investor participation in volumes
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Investor participation in volumes
Equities and derivatives segments
BM&F SEGMENT (DERIVATIVES)
BOVESPA SEGMENT (EQUITIES)
56% 51% 49% 48% 45% 42% 38% 34% 33% 33% 29% 31% 32%37% 32% 34%
12% 15% 17% 19% 20% 22% 23% 25% 25% 23% 25% 26% 26%26%
25% 23%
24% 25% 23% 23% 24% 30% 33% 34% 37%38% 41%
38% 37% 32%
36% 35%
7% 7% 9% 8% 8% 4% 4% 5% 4% 4% 3% 4% 4% 4% 5% 6%
2005 2006 2007 2008 2009 2010 2011 2012 2013 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13
Individuals Institutional Investors Foreign Investors Financial Institutions Companies Central Bank
25% 25% 23% 27% 31% 26% 21% 18% 16% 17% 16% 18% 15% 16% 13% 16%
27% 27% 30% 27%26% 33%
33% 32% 33% 35% 33% 32% 32% 32% 33% 32%
33% 36% 35% 35% 34%30% 35% 40% 42% 40% 41% 43% 42% 44% 44% 45%
12% 10% 10% 8% 7% 8% 9% 8% 8% 8% 9% 7% 9% 7% 8% 6%
2005 2006 2007 2008 2009 2010 2011 2012 2013 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13
Individuals Institutional Investors Foreign Investors Financial Institutions Companies Others
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FINANCIAL HIGHLIGHTS
Reduction in expenses. Return to shareholders
Income Statement
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Income StatementHistory
SUMMARY OF INCOME STATEMENT (CONSOLIDATED)
(in BRL thousand) 2009 2010 2011 2012
Net revenue 1,510,569 1,898,742 1,904,684 2,064,750
Expenses (569,832) (633,504) (816,664) (763,080)Adjusted expenses (446,677) (543,881) (584,521) (563,487)
Operating income 940,737 1,265,238 1,088,020 1,301,670
Operating margin 62.3% 66.6% 57.1% 63.0%
Equity method result - 38,238 219,461 149,270
Financial result 245,837 289,039 280,729 208,851
Income before taxation of profit 1,186,574 1,592,515 1,588,210 1,659,791
Income tax and social contribution (304,505) (448,029) (539,681) (585,535)
Net income* 881,050 1,144,561 1,047,999 1,074,290
Adjusted net income 1,223,761 1,586,374 1,545,627 1,612,136
Adjusted EPS (BRL ) 0.6104 0.7929 0.7932 0.8351
*Attributable to shareholders of BM&FBOVESPA.
Revenue and expenses breakdown
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9.0%
29.5%
5.7%37.1%
18.7%
Cash Market (Trading)
Cash Market (Post-Trading)
Equities Derivatives (Trad. and post-trad.)
Financial Derivatives (Trad. and post-trad.)
Other Revenues
REVENUE BREAKDOWN (2012)
Gross Revenue:
BRL 2,289.0 million
Revenue and expenses breakdownDiversified revenue sources as a differential, costs under control
EXPENSES BREAKDOWN (2012)
4.5%: Depository, Custody and Back-Office
3.4%: Securities Lending
3.0%: Vendors
2.3%: Trading Access (Brokers)2.0%: Listing
46.4%
13.5%
12.3%
6.7%
2.5%
18.6%
Personnel
Data processing
Deprec. and Amortization
Third Party Services
Marketing
Others
Adjusted Opex and Capex Budgets
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Adjusted Opex and Capex BudgetsFocus on cost control and investments phase
Focus on cost control: in 2013, the effects of inflation will be neutralized by efficiency gains
2010-2013E: Adjusted expenses decreasing in real terms (CAGR of 1.6% p.a.)2013 Budget: BRL 560 million-580 million, the same range as in 2012
1 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 .
(in BRL million)
ADJUSTED OPEX
CAPEX
(in BRL million)
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
544 585 564
560-580
2010 2011 2012 2013E
268 204 258
260-290170-200
2010 2011 2012 2013E 2014E
Growth Path
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(in BRL million)
(in BRL)
GROWTH IN ADJUSTED EARNINGS PER SHARE
GROWTH IN REVENUES AND RESULTS
Growth PathGrowth in business and results
Financial Highlights
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7051,145 912 1,074
75
435 606 16780
1,579 1,518
1,091
2009 2010 2011 2012
Total payout Buyback
Financial HighlightsFocus on cash generation and total shareholder return
HISTORY OF PROCEEDS
SHARE BUYBACK: MAXIMIZING RETURN
(in BRL millon)
(in BRL million)
*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. ROIC: Return on Invested Capital.
1,612Adj. Net
income1,5461,5861,224
1,074 Net income1,0481,145881
432841 762 984
274
304150
90705
1,145912
1,0743.4%
4.5%4.5%
4.8%80%
100%87%
100%
2009 2010 2011 2012
Dividends Interest on capital Dividend Yield* Payout ratio (%)
8.9% ROIC8.4%9.4%8.3%
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APPENDIX
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IOFs
10/17
R$14.97Goodwill
11/30R$13.01
Competition
News
01/05
R$13.10
Rumors
about IOF
Exchanges Mergers
02/08R$11.18
BATs
02/15R$11.43
Reductions of Volumes
Estimates by the Market
New IOF on
Derivatives
07/26
R$9.55
Direct Edge
11/21R$10.11
Removal of
IOF on Equities
12/01
R$10,54
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
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
May-13
Jun-13
Jul-13
BM&FBOVESPA IBOVESPA
Oxera's Report
Release
06/18
Change of IOF
on foreign
exchange
transactions
06/14
Updated to Jul. 31, 2013.
BVMF3 YTD: -12.1%
IBOVESPA YTD: -20.9%
BVMF3 Recent performance
Financial Highlights
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Different earnings impact the P/E calculation and distort comparisons and market consensus
The reported adjusted net income reflects better the companys cash generation
1 Excludes the investment in associate (CME Group) accounted under the equity-method. 2 Simulates the Interest on Capital amount that would be approved if
there was no goodwill tax benefit; 3 Stock at R$13.79 (March 12 th, 2013).
EPS 2012 P/E3
Estimated GAAP EPS (A) 0.56 24.8
Earnings without goodwill = (A) x :1,142 0.64 21.7
Stock price discounted by goodwill NPV
(R$1.00 per share) / Earnings without
goodwill
0.64 20.1
Adjusted Earnings 0.84 16.5
15-20% impact on P/E multiple
Difference between GAAP EPS and
the EPS adjusted to non existence of
goodwill simulation
GAAP Book in 2012Current
Simulation without
goodwillR$ millions
EBT 1,511 1,511
Deferred Tax 539 -
Other taxes /credits (14) -
Total taxes 525 282
GAAP Net income 1,074 1,228 : 14.2%
Tax Book in 2012Current
Simulation
without goodwillR$ millions
EBT 1,511 1,511
(-) Goodwill amortization 1,586 -
(-) Interest on capital 90 680(2)
(=) Taxable earnings (165) 831
Tax (34%) (56) 282
Since 2009, the goodwill tax benefit has been recognized as deferred liability (being cashneutral), reducing the GAAP earnings
Financial HighlightsP/E analysis
BOVESPA Segment
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PUBLIC OFFERINGS (BRL billion)
PIPELINE: OFFERINGS ANNOUNCED SO FAR TO THE MARKET
Updated to Jul. 31, 2013.
BOVESPA SegmentRaising Capital
There are 5 offerings in the pipeline
IPOs (4): Unidas; Azul; Ouro Verde Locao e Servio; e Votorantim Cimentos
Follow-ons (1): Tupy.
Additionally, there are 20 Real Estate Funds filed with CVM: estimated value of R$ 3.7billion
* Excludes the portion acquired by the Brazilian government in the Petrobras offering, via the transfer of rights in barrels (BRL 74.8 billion).
4.3 8.5 15.1 14.526.8 22.2
63.2
10.8 9.3 2.74.55.4
15.4
55.6
7.5 23.8
11.2
7.2 3.9 15.68.8
13.9
30.4
70.1
34.346.0
74.4
18.0 13.218.3
2004 2005 2006 2007 2008 2009 2010* 2011 2012 2013
Follow-On
IPO
BOVESPA Segment
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BOVESPA SegmentForeign investment flow
MONTHLY NET FLOW OF FOREGIN INVESTMENTS (in BRL billon)
Includes public offering (primary market) and regular trades (secondary market).
Updated until Jul. 31, 2013.
0.4
1.7
(1.3)
1.8
3.4
1.9 2.2
(0.4)(0.2)
0.8 1.0
(2.4)
7.2
(1.1)(1.3)
2.9
(2.3)
(0.3)
0.61.1
(4.2)
(1.2)
0.7
4,9 4.9
2.6 1.6
7.6
(1.2)
(3.8)
0.1
BOVESPA Segment
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11.2%
14.3%
2.2%
5.1%
20.4%
5.4%
0.4%5.5%
8.8%
26.8%
Oil, Gas and Biofuels Basic Materials Capital Goods and Service s Construction and TransportationConsumer Non Cyclical Consumer Cyclical Information Technology Telecommunications
Public Utilities Financial
15.7%
21.6%
2.5%
3.6%
8.6%
2.6%
0.3%11.1%
11.5%
22.4%
BOVESPA SegmentPotencial to increase the number of listed companies
177%
126% 121%
109%100%
136%
67%75%
87%
72%
129%
100%
39%
174%
137%
158%
119%107%
129%
75% 76%
96%
72%
138%
80%
44%
129%
110% 109%104%
89% 87%
60%57% 55% 50% 49% 46%
35%
Singapore Canada Chile USA Korea Australia Japan France India Brazil UK China Mexico
2009 2010 2011
MARKET CAPITALIZATION TO GDP (%)*
MARKET CAPITALIZATION BY ECONOMIC SECTOR * Source: World Bank
Dec05 Dec12
Hong Kong : 438% 481% 365%
High Frequency Trading (HFT)
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High Frequency Trading (HFT)
BOVESPA SEGMENT: HFT ADTV (BRL million) AND MKT. SHARE
BM&F SEGMENT: HFT ADV (thousands of contracts) AND MKT. SHARE
*Updated to Jul. 31, 2013
*
*
319447
835 917 8741.186 1.044
830 927876 1.024291
267
319 249 325
268252
233296
256221
205184
175 146 -74
341369
667312
814 899
1,329 1,3121,199
1,454 1,369 1,4041,592
1,8001.557
6.1% 7.4%10.3% 10.3% 8.5% 9.4% 9.8% 9.9% 10.6% 10.7%
13.5%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
ADTV (Foreigners) ADTV (Individuals) ADTV (Institutionals) % of overall market
84 95179 146 135 193
209 209 191270 25767 101
148120 129
137 74 45 53
78 82
4445
6851 47
6558 53 48
70 60211
251
420342
413 404342 307 292
418 399
3.9% 5.0%7.8% 7.3% 8.0% 6.3% 6.7% 5.7% 5.0% 6.0%
8.6%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Mini FX Equities Other % of overall volume
R l F k
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CLEARINGHOUSES ACTIVITIES
Law 10.214 of Mar. 27, 2001 Clearinghouses considered systemically important by
the BCB should ensure settlement (i.e., act as CCPs)
BCB Resolution 2.882 of Aug. 30, 2001
Clearinghouses shall guarantee, at least, settlement
of the highest net amount owed
Access criteria must be public and allow wide
participation
Circular BCB 3.057 of Aug. 31, 2001
Rules, manuals and safeguard mechanisms must be
approved by BCB
Maintenance of a secondary data center and
contingency procedures
Supervision by BCB
CVM Instruction 441 of Nov. 10, 2006
Securities lending with guaranteed settlement - final
beneficiary model
STOCK EXCHANGE ACTIVITY
CVM Instruction 461 of Oct. 23, 2007
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 ofthe in the organized market
management bodies
Regulatory Framework
BM&FBOVESPA Market Supervision (BSM)
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AuditMarket
supervision
Analysis
and
strategy
Legal dept.
Selfregulation
Officer
Supervision Board
(12 members*)
Strategic
Committee
Atribuies da BSM estabelecidas na
Instruo CVM 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
Main activities of BSM Organizational chart
Monitor 100% of the participants
transactions
Assess 100% of intermediaries
Enforcement Education
BSM duties established in CVM Instruction
461/2007
BSM is is a not-for-profit association organized as a self-regulatory and market surveillance
organization, responsible for regulatory and oversight activities relative to the markets we operate.
* 9 independent
BM&FBOVESPA Market Supervision (BSM)Self-Regulation Entity
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How? Why?
BM&FBOVESPAs Sustainability Mission
Program created in 2010
as the umbrella of exchange s
sustainability actions.
It aims to instigate and
promote the sustainabledevelopment of BM&FBOVESPA
and capital markets, involving
various audiences: investors,
companies, brokerage houses etc
New products and services
New Markets
International projection
Competitive edge
Risk managementCost reduction
Induction Role
Image
Reputation
Sustainability Policy
To promote sustainability and strategically-aligned private socialinvestment, contributing towards the institutional strengthening of
BM&FBOVESPA
BM&FBOVESPAs Sustainability Policy
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y yApproved by the Board at 4/4/2013
BM&FBOVESPAs Sustainability Policy
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ISE Corporate Sustainability Index
and ETF
IGC Corporate Governance Indices
Em Boa Companhia(program with listed companies)
Founding Signatory to the Sustainable
Stock Exchanges Initiative UN
Signatory to the PRI Principles for
Responsible Investment - UN
ICO2 Carbon Efficient Index and ETF
Carbon Market
Green IT
Greenhouse Gas Emissions Inventory(verification and offsetting)
Compensation of greenhouse gas
emissions
Selective collection program
Internal and External stakeholders
Signatory to the Global Compact(the first stock exhange in the world)
Compacts and commitments
BM&FBOVESPA Institute
Voluntary Service Program
Novo Mercado
Sustainability Policy Report or Explain for Sustainability
reports
Internal governance (Sustainability
Comission and Committee)
Annual Report by GRI Model
y yInitiatives
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RESULTS FOR 2Q13
Revenue growth and cost control
2Q13 vs. 2Q12 Highlights
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Total revenue: R$668.8 million, +10.9%
BOVESPA seg.: R$289.5 million, +7.7% BM&F seg. R$268.8 million, +12.2%
Other revenue: R$110.5 million, +16.4%
Net revenue:R$599.8 million, +10.8%
Adjusted expenses:R$133.2 million, +4.1%
Operating income: R$423.0 million, +12.8%
Adjusted net income:R$469.6 million, +11.0%
Adjusted EPS:R$0.244,+11.4%
Dividends: payment ofR$280.7 million in 2Q13,
R$0.147 per share (80% of GAAP net income)
EBITDA: R$503.2 million, +14.0% and margin of 83.9%(according to CVM Rule 527/12 that does not exclude equity methodaccounting).
BOVESPA segment:
ADTV: R$8.3 billion, +8.5% Margin: 5.314 bps, -3.4%
BM&F segment:
ADV: 3.6 million contracts, +8.7%
RPC: R$1.151, +1.6%
High growth products:
Securities Lending: record of average open interestpositions (R$44.8 billion), +53.4%
Tesouro Direto: +10.4% average of assets under custody
FIIs (real estate funds): strong growth in ADTV (R$41.3
million in 2Q13) and number of investors (104.1 thousand)
LCAs (agribusiness credit bills): assets under custody of
R$52.3 billion in Jun/13.
MAIN PROJECTS AND HIGHLIGHTS
46
Q Q g gRecord of revenue and volumes
FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS
1Expenses adjusted to Companys depreciation, stock options plan, tax on dividends from the CME
Group and provisions.2Net income adjusted by: i) the e ffect of deferred liability recognition in connection with temporary
differences from amortization of goodwill for tax purposes; ii) the impact of the stock options plan;
iii) investment in affiliates (CME Group) accounted for under the equity method, net of taxes; andiv) taxes paid overseas to be compensated.3IPN/CORE implementation requires the authorization of the regulators.
PUMA Trading System: less than 1 millisecond of latency
Clearinghouses Integration (IPN)3: integrated tests with
market participants started in Jul/13.
iBalco - OTC Platform: in operation for FX NDFs since Jul/13
Pricing: first phase of changes for cash equities implemented
on Apr/13SMEs: proposals for developing the Access Market
BOVESPA Segment performance
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2Q13 vs. 2Q12: + 8.5% ADTV
13.9% growth of foreign investors ADTV, due to theactivity of high frequency traders (HFTs)
9.6% increase of institutional investors ADTV
Increase of turnover velocity, which hit 81.6%
Margins fell due to changes in the fee policy and theproduct mix (lower participation of derivatives)
2Q13 vs. 1Q13: +10.3% ADTV
10.1% growth in cash equities ADTV and 19.6%growth in options (equity/index) ADTV
47
AVERAGE DAILY TRADING VOLUME (ADTV) AND MARGIN
g pRecord volumes driven by turnover velocity
AVERAGE MARKET CAP. AND TURNOVER VELOCITYADTV BY INVESTOR CATEGORY
(in R$ billions)
7.6 7.2 7.0 7.5 8.3
5.498 5.728 5.573 5.706 5.314
2Q12 3Q12 4Q12 1Q13 2Q13
ADTV (R$ billions) Margin (bps)
BM&F Segment Performance
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2Q13 vs. 2Q12: +8.7% ADV
ADV: 12.8% increase in Brazilian Real interest ratecontracts
RPC: +1.6%
Appreciation of the FX rate (USD/R$) - FX and USDDollar interest rate contracts
Growth in RPC of index-based contracts
2Q13 vs. 1Q13: +20.5% ADV
+20.5% interest rate contracts in R$ ADV.
48
ADV BY INVESTOR CATEGORY
(in %)
AVERAGE DAILY VOLUME (ADV) AND AVERAGE RPC
gRecord ADV driven by interest rate contracts
INTEREST RATES IN R$ - ADV BY MATURITY
(in millions of contracts)
(in millions of contracts)
0.3 0.2 0.6 0.30.8
1.9
(86%) 1.6
(90%)
1.4( 71%)
1.8
(84%)
1.8
(70%)
2.3
1.81.9 2.1
2.5
2Q12 3Q12 4Q12 1Q13 2Q13
1st-3rd Maturity 4th Maturity-on
Revenue Breakdown in 2Q13
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6.3%
30.9%
4.3%39.3%
19.2%
39.3%: Financial/Commodity Derivatives
37.2%: Cash Market
6.3%: Trading
30.9%: Post-Trade
4.3%: Stock and Indices Derivatives
Total Revenue
R$668.8 million
4.4%: Securities Lending
4.3%: Depository, Custody and Back-Office
2.6%: Vendors
1.9%: Trading Access
1.8%: Listing
19.2%: Other Revenues
49
Diversified revenue sources as a differential
REVENUE BREAKDOWN
Revenue breakdown for the cash market (trading + post-trade) reflects the pricing policy changes which came into force in Apr/13.
i) Reduction of trading fee to 0.5 bps from 0.7 bps for all investors
ii) Post-trade increase to 2.0 bps from 1.8 bps for institutional investors and day trades
CASH MARKET TRADING REVENUE
ACCOUNTED FOR6.3% OF TOTAL
DERIVATIVES REVENUE
(BM&F + BOVESPA) ACCOUNTED FOR43.6% OF THE TOTAL
2Q13 Expenses
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Expense:
R$176.8
million
50
pContinued focus on cost control and operational efficiency
ADJUSTED EXPENSETOTAL EXPENSE BREAKDOWN
(in R$ millions)
*Includes expenses with maintenance in general, taxes adjusted by the dividends from CME Group,board and committee members compensation and others (excluding provisions).
**12 month inflation (Consumer Price Index - IPCA) of 6.7%. Source: IBGE.
127.9133.2
7.3 1.0
(1.8)
0.3
(1.6)
0.1
2Q12 Adj.
Exp.
Adj.
Personnel
Data proc. Third
Party
Commun. Marketing Others* 2Q13 Adj.
Exp.
ADJUSTED EXPENSE INCREASED 4.1% OVER2Q12, BELOW ACCUMULATED INFLATION IN
THE PERIOD** AND IN LINE WITH THE BUDGETFOR THE YEAR (R$560-580 MILLION)
Financial Highlights
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1,443
1,166
1,191
1,041
1,139
340
343
346
348
351
363
390
350
440
475
1,979
2,100
1,964
2,341
1,967
4,125
3,999
3,851
4,169
3,932
2Q12
3Q12
4Q12
1Q13
2Q13
Market participants cash collateral and others* Restricted funds
Subsidiaries** Available funds
*Includes collateral pledged by participants in the form of cash, receivables and rights in securities under
custody, as well as payouts still undisbursed.**Includes third party collateral and restricted funds at BM&FBOVESPA Settlement Bank (Banco
BM&FBOVESPA). 51
Reduction compared to 1Q13 due to dividend paymentsin April and June and execution of the buyback program
Acceleration of the share buyback program
(In R$ millions)
CASH AND FINANCIAL INVESTMENTS RETURN TO SHAREHOLDERS
FINANCIAL RESULTS
Financial result of R$43.1 million, down 21.2% YoY
Financial expenses rose 44.9%, reflecting, mainly, thedepreciation of the Brazilian Real against the USD
Financial income down 1.9%, reflecting the interestrate reduction
CAPEX
In 2Q13, investments amounted to R$78.6 million,totaling R$120.4 million in 1H13
CAPEX budget ranges:
2013:between R$260 290 million
2014: between R$170 200 million
BUYBACK PROGRAM
Repurchased 20.9 million shares (R$263.1 million) in2Q13, at an average price of R$12.61 per share (morethan 1.0% of the Companys free-float)***
New program: up to 60 million shares until Jun/14.Through Jul/13, 3.35 million shares were repurchasedat the average price of R$12.33 per share
PAYOUT On Aug. 8, 2013, the Board of Directors approved the
payment ofR$280.7 million in dividends, equivalentsto R$0.147 per share and 80% of GAAP net income
Payment on Sep. 30, 2013 based on shareholdersposition dated Aug. 21, 2013
*** This share buyback program ended on June 28, 2013 and authorized the acquisition of up to
60.0 million shares.
Summary of Income Statement (consolidated)
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(in R$ millions, unless otherwise indicated) 2Q13 2Q12Change
2Q13/2Q121Q13
Change
2Q13/1Q13
Net revenues 599.8 541.2 10.8% 521.0 15.1%
Expenses (176.8) (166.1) 6.4% (172.8) 2.3%
Operating income 423.0 375.0 12.8% 348.2 21.5%
Operating margin 70.5% 69.3% 122 bps 66.8% 369 bps
Equity in income of investees 51.4 42.4 21.3% 37.2 38.3%Financial results 43.1 54.7 -21.2% 37.1 16.0%
EBT 517.5 472.1 9.6% 422.5 22.5%
Net income* 350.8 300.1 16.9% 267.0 31.4%
Adjusted net income 469.6 422.9 11.0% 394.6 19.0%
Adjusted EPS (in R$) 0.244 0.219 11.4% 0.204 19.6%
Adjusted expenses (133.2) (127.9) 4.1% (124.0) 7.4%
Summary of Income Statement (consolidated)
* Attributable to BM&FBOVESPA shareholders.
NET INCOME GROWTH REFLECTING GOOD OPERATING PERFORMANCE
THE DECREASE IN FINANCIAL RESULTS WAS PRACTICALLY OFFSET BY THE INCREASE
IN THE EQUITY IN INCOME OF INVESTEES
High growth products
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Increasing revenue diversification
53
CAGR: +48%
*Updated until June 28, 2013.
OPERATIONAL FIGURES REVENUE
CAGR: +197% CAGR: +30%
CAGR: +55% CAGR: +36%
CAGR: +249% CAGR: +14%
29.2
49.076.6
94.0
2.8%
4.7%
6.6%7.5%
1H10 1H11 1H12 1H13
Revenue (R$ million) Share in total revenue (%)
Strong revenue growth of selected
products
In 1H13, representing 7.5% of total
revenue, or R$94.0 million
Products well received by clients
Continuous developments to maintain
strong growth trend
1.5
40.1
2010 2013*
FIIs (ADTV - R$ million)
20.5
44.7
2010 2013*
Securities Lending
(open interest - R$ billion)
28.5
107.0
2010 2013*
ETFs (ADTV - R$ million)
51.5
77.2
2011 2013*
Options with market maker
(ADTV - R$ million)
3.6
43.7
2011 2013*
LCAs (assets registered - R$ billion)
3,9
9,7
2010 2013*
Tesouro Direto
(ativos em custdia - em R$ BI)
Company's priorities
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Company s priorities
REVENUE GROWTH AND DIVERSIFICATION
Growth of the main markets and products (equities and derivatives)
Focus on developing products and markets with high growth potential and whichdiversify revenue
ACHIEVING OPERATING AND TECHNOLOGICAL EXCELLENCE
Development of platforms that bring efficiency to BM&FBOVESPA and the market
Assuring market integrity (risk control)
FOCUS ON THE CUSTOMER
Deepen the relationship with investors, brokerage houses and issuers, strengthening theCompany's position
Launch of new products
SHAREHOLDER RETURN
Remain focused on cost control
Payment of at least 80% of GAAP earnings as dividends
Share buyback program
54
Summary of Balance Sheet (Consolidated)
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55
Summary of Balance Sheet (Consolidated)
LIABILITIES AND SHAREHOLDERS EQUITYASSETS
(in R$ millions) 06/30/2013 12/31/2012 (in R$ millions) 06/30/2013 12/31/2012
Current assets 3,539.0 3,536.3 Current liabilities 1,735.3 1,660.6
Cash and cash equivalents 187.6 43.6 Collateral for transactions 1,010.8 1,134.2
Financial investments 3,093.6 3,233.4 Others 724.5 526.4
Others 257.8 259.3 Non-current liabilities 3,517.2 3,072.6
Non-current assets 21,151.2 20,610.8 Debt issued abroad 1,348.1 1,242.2
Long-term receivables 922.8 808.9 Deferred Inc. Tax and Social Contrib. 2,017.4 1,739.6
Financial investments 651.2 573.6 Others 151.7 90.7
Others 271.5 235.2 Shareholders' equity 19,437.6 19,413.9
Investments 3,235.4 2,928.8 Capital 2,540.2 2,540.2
Property and equipment, net 363.2 361.0 Capital reserve 16,047.2 16,037.4
Intangible assets 16,629.8 16,512.2 Others 834.5 820.3
Goodwill 16,064.3 16,064.3 Non-controlling interests 15.7 16.0
Total Assets 24,690.2 24,147.1 Liabilities and Shareholders' Equity 24,690.2 24,147.1
Reconciliation 2Q13
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Reconciliation 2Q13
ADJUSTED NET INCOME RECONCILIATION
ADJUSTED EXPENSES RECONCILIATION
* Attributable to BM&FBOVESPA shareholders.
(in R$ millions, unlessotherwise indicated)
2Q13 2Q12 Change2Q13/2Q12
1Q13 Change2Q13/1Q13
GAAP Net Income* 350.8 300.1 16.9% 267.0 31.4%
Stock options plan 7.8 8.2 -3.9% 7.9 -0.5%
Deferred tax liabilities 138.9 134.8 3.1% 138.9 0.0%
Equity Method (net of taxes) (46.3) (37.6) 23.1% (32.5) 42.2%
Recoverable taxes paid overseas 18.3 17.5 4.3% 13.4 36.9%
Adjusted Net Income 469.6 422.9 11.0% 394.6 19.0%
(in R$ millions, unless
otherwise indicated)2Q13 2Q12
Change
2Q13/2Q121Q13
Change
2Q13/1Q13
Total Expenses 176.8 166.1 6.4% 172.8 2.3%
Depreciation (28.8) (24.0) 20.2% (27.1) 6.4%
Stock options plan (7.8) (8.2) -3.9% (7.9) -0.5%
Tax on dividends from CME Group (5.1) (4.7) 7.2% (4.6) 10.2%
Provisions (1.9) (1.4) 38.4% (9.3) -79.6%
Adjusted Expenses 133.2 127.9 4.1% 124.0 7.4%
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BM&FBOVESPA INVESTOR RELATIONS
+55 (11) 2565 4729 / 4418 / 4834 / 7073 / 4007/4702
ri@bmfbovespa.com.br
ir.bmfbovespa.com.br
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