bme financial results 3q 2014 presentation
DESCRIPTION
BME Financial Results 3Q2014 presentation. Business PerformanceTRANSCRIPT
- 1 -
October 2014
Business Evolution January – September 2014
Business Performance
January–September 2014
- 2 -
October 2014
Business Evolution January – September 2014
Disclaimer
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THE INFORMATION CONTAINED IN THIS DOCUMENT HAS BEEN PROVIDED BY BME.
- 3 -
October 2014
Business Evolution January – September 2014
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 4 -
October 2014
Business Evolution January – September 2014
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 5 -
October 2014
Business Evolution January – September 2014
Results
Net profit
Net profit increase of 16.2% compared to 3Q13
+16.2% (€ Million)
33.1
38.0
42.2 41.538.5
3Q13 4Q13 1Q14 2Q14 3Q14
- 6 -
October 2014
Business Evolution January – September 2014
Results
Net profit
Net profit increase of 16.2% compared to 9M13 (Best result since 9M08)
+16.2%(€ Million)
116.6 118.4
105.1 105.2
122.2
9M10 9M11 9M12 9M13 9M14
- 7 -
October 2014
Business Evolution January – September 2014
Results
Net Profit before extraordinary
Adjusted Net Profit increases 21.1%
+ 21.1%
(Million euros)
123.0
101.6
9M2014 9M2013
- 8 -
October 2014
Business Evolution January – September 2014
Solid operating leverage
Costs Revenues Revenues not linked to volumes Ratio
78%
90%
106% 109% 105% 103%112%
118% 114% 116%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
- 9 -
October 2014
Business Evolution January – September 2014
Key ratios benchmarking• Efficiency • ROE
- BME´s data as of 30/09/2014
- Average peer Group figures are calculated using last results published and not taking account of goodwill impairment charges
40.1%
17.9%
BME Average PeerGroup
29.8%
48.0%
BME Average PeerGroup
- 10 -
October 2014
Business Evolution January – September 2014
Dividends: Maximizing shareholders´ returns
Sustainability of Pay-out
First interim dividend payment: €0.40 per share (September 12th)
Second interim dividend date: December 23th
0.956 0.986
0.40 0.40 0.40 0.40 0.40 0.40
0.60 0.60 0.60 0.60 0.60
1.016 0.986
0.60 0.60 0.60 0.60 0.65
0.372 0.372 0.372 0.372
2007 2008 2009 2010 2011 2012 2013 2014
First Interim Dividend Second Interim Dividend Suplementary Dividend Extraordinary Dividend
1.972 1.972Total Dividends /Share
Pay Out 82% 86%
1.9721.9721.972
89% 86% 86%
1.972
98%
1.65
96%
- 11 -
October 2014
Business Evolution January – September 2014
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 12 -
October 2014
Business Evolution January – September 2014
Business Areas
Consolidated Revenues 9M 2014 - %
EBITDA 9M 2014 - %
Redefining Business Units
Equity 46.3%
Settlement 24.6%
Clearing 5.3%
Information 11.0%
Derivatives 3.7%
Fixed Income
3.5%
IT & Consulting
5.6%
Equity 47.9%
Settlement 27.2%
Clearing 4.2%
Information 11.8%
Derivatives 2.9%
Fixed Income 2.8%
IT & Consulting
3.2%
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October 2014
Business Evolution January – September 2014
158
219
191
227
197
50.8 53.0 51.4 47.0 44.2
12.6
15.518.0
15.8 16.4
3Q13 4Q13 1Q14 2Q14 3Q14
Mile
s d
e m
illo
ne
s
73
36
48
92
6760
75
51
65
7972
76
90
44
62
29.0
7.3 14.5
31.2
11.0 10.8
26.3
12.4 12.7
22.8
10.513.7
26.4
6.9 11.0
4.3
3.6
4.7
6.4
4.84.3
7.3
5.3 5.4 5.7 5.0 5.1
6.3
4.8
5.4
7/13 8/13 9/13 10/13 11/13 12/13 1/14 2/14 3/14 4/14 5/14 6/14 7/14 8/14 9/14
Equity Market
Equity (Turnover, volume and shares traded)
Turnover (€ Bill.) Shares (Bill.) Trades (Mill.) Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)
Growth is maintained in activity
Note: Business Unit is redefined incorporating activity, income and expenses of the Equity Listing
Thousands of € 3Q 2014 3Q 2013 % 9M 2014 9M 2013 %
Revenues 35,382 32,865 7.7% 114,496 95,419 20.0%
Expenses (9,418) (9,167) 2.7% (28,943) (28,362) 2.0%
EBITDA 25,964 23,698 9.6% 85,553 67,057 27.6%
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October 2014
Business Evolution January – September 2014
6,102 6,3494,180
8,0544,636
113 198
1,036
3,056
1,155
3Q13 4Q13 1Q14 2Q14 3Q14
New issues New listings
5,7916,215 6,547
5,216
11,110
• Listing activity
Investment flows channeled to the Exchange (€ Million)
• In the first nine months funds raised in new admissions increased 379.6% over 2013, to €5,247 million.
• The "scrip dividend" issuance continue at a high rate of emission. During the third quarter scrips were issued by €2.9 billion, up 1% on the previous year. In the year to date, scrips reached 8.1 billion, 3% more than in the same period of 2013.Source: FESE (Federation of European Stock Exchanges)
Equity Market
- 15 -
October 2014
Business Evolution January – September 2014
12.1
13.8 13.612.9 12.4
3Q13 4Q13 1Q14 2Q14 3Q14
1,543 1,514 1,492 1,480 1,466
616 676 710 754 751
3Q13 4Q13 1Q14 2Q14 3Q14
2,2172,159 2,190 2,2342,202
Nominal registered in FI Market cap registered in Equity
Securities under custody: Volumes (€ Billion)
Settlement & Registration
Settlement: Number of trades settled(Million of trades)
Revenue growth in settlement compensates the fall in registration
Thousands of € 3Q 2014 3Q 2013 % 9M 2014 9M 2013 %
Revenues 19,676 18,364 7.1% 60,821 61,829 -1.6%
Expenses (4,128) (3,266) 26.4% (12,201) (10,198) 19.6%
EBITDA 15,548 15,098 3.0% 48,620 51,631 -5.8%
- 16 -
October 2014
Business Evolution January – September 2014
8796
107113 112
3.9 3.9 4.13.5 3.2
3Q13 4Q13 1Q14 2Q14 3Q14
Subscribers (Thous.) P.Quote (Mill.)
Market Data & Information
Information: Subscribers to primary market sources (Average for the period in thousands of subscribers and millions of accesses per quote)
Continued positive trend in users and connections
Thousands of € 3Q 2014 3Q 2013 % 9M 2014 9M 2013 %
Revenues 8,960 8,070 11.0% 27,254 24,513 11.2%
Expenses (1,960) (1,752) 11.9% (6,110) (5,477) 11.6%
EBITDA 7,000 6,318 10.8% 21,144 19,036 11.1%
- 17 -
October 2014
Business Evolution January – September 2014
7,845
11,14410,364 10,239
5,051
3Q13 4Q13 1Q14 2Q14 3Q14
356,724
314,932
397,583
233,375 237,474
3Q13 4Q13 1Q14 2Q14 3Q14
Clearing
Good behavior of the derivatives segment
Turnover MEFFREPO (€ Million) Volume (Mwh) traded in Energy market (Thousand)
Thousands of € 3Q 2014 3Q 2013 % 9M 2014 9M 2013 %
Revenues 4,120 3,785 8.9% 13,060 11,424 14.3%
Expenses (1,725) (1,080) 59.7% (5,471) (4,028) 35.8%
EBITDA 2,395 2,705 -11.5% 7,589 7,396 2.6%
- 18 -
October 2014
Business Evolution January – September 2014
2,770 2,303
10,391 10,766
5,814 5,515
18,477 18,144
3Q13 3Q14 9M13 9M14
1,3051,638
4,053
4,907
456701
1,444
2,006
1,207
1,741
3,631
5,480
3Q13 3Q14 9M13 9M14
Derivatives
(Thousand of contracts)
Growth in Ibex 35 ® contracts
Stock derivatives contracts tradedIndex derivatives contracts traded
IBEX 35® Futures MiniIBEX 35® Futures IBEX 35® Options Stock Futures Stock Options
(Thousand of contracts)
Note: Business Unit is redefined excluding revenue from clearing and settlement and now are recognized in the Clearing Business Unit
Thousands of € 3Q 2014 3Q 2013 % 9M 2014 9M 2013 %
Revenues 2,808 2,700 4.0% 9,060 8,677 4.4%
Expenses (1,223) (1,653) -26.0% (3,953) (4,363) -9.4%
EBITDA 1,585 1,047 51.4% 5,107 4,314 18.4%
- 19 -
October 2014
Business Evolution January – September 2014
192 212
304241
102
5769
76
111
102
3Q13 4Q13 1Q14 2Q14 3Q14
204
249
352380
281
Fixed income
Growth in revenues from listing
AIAF – Turnover (Billion €)
Repo Cash
Note: Business Unit is redefined incorporating activity, income and expenses of the Fixed Income Listing
MARF (Alternative Fixed Income Market) activity after 9 months:
•17 Market Members and 17 registered Advisers
• 5 issues maturing in 5 to 7years (€231 million)
• 5 promissory note issue programmes (máximum balance of €249.9 million) and 19 promissory note payments (€149.9 million)
•1 issue of securitization (€10 million). Open for a maximum amount of €500 million
Thousands of € 3Q 2014 3Q 2013 % 9M 2014 9M 2013 %
Revenues 2,659 2,755 -3.5% 8,709 9,043 -3.7%
Expenses (1,286) (1,292) -0.5% (3,795) (3,981) -4.7%
EBITDA 1,373 1,463 -6.2% 4,914 5,062 -2.9%
- 20 -
October 2014
Business Evolution January – September 2014
IT & ConsultingThousands of € 3Q 2014 3Q 2013 % 9M 2014 9M 2013 %
Revenues 5,144 3,932 30.8% 13,749 13,306 3.3%
Expenses (2,657) (2,385) 11.4% (8,091) (7,477) 8.2%
EBITDA 2,487 1,547 60.8% 5,658 5,829 -2.9%
- 21 -
October 2014
Business Evolution January – September 2014
Breakdown by business areas
Revenues
Thousands of € 3Q 2014 3Q 2013 % 9M 2014 9M 2013 %
Equity 35,382 32,865 7.7% 114,496 95,419 20.0%
Settlement 19,676 18,364 7.1% 60,821 61,829 -1.6%
Clearing 4,120 3,785 8.9% 13,060 11,424 14.3%
Information 8,960 8,070 11.0% 27,254 24,513 11.2%
Derivatives 2,808 2,700 4.0% 9,060 8,677 4.4%
Consulting & IT 5,144 3,932 30.8% 13,749 13,306 3.3%
Fixed income 2,659 2,755 -3.5% 8,709 9,043 -3.7%
- 22 -
October 2014
Business Evolution January – September 2014
Breakdown by business areas
EBITDA
Thousands of € 3Q 2014 3Q 2013 % 9M 2014 9M 2013 %
Equity 25,964 23,698 9.6% 85,553 67,057 27.6%
Settlement 15,548 15,098 3.0% 48,620 51,631 -5.8%
Clearing 2,395 2,705 -11.5% 7,589 7,396 2.6%
Information 7,000 6,318 10.8% 21,144 19,036 11.1%
Derivatives 1,585 1,047 51.4% 5,107 4,314 18.4%
Consulting & IT 2,487 1,547 60.8% 5,658 5,829 -2.9%
Fixed income 1,373 1,463 -6.2% 4,914 5,062 -2.9%
- 23 -
October 2014
Business Evolution January – September 2014
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 24 -
October 2014
Business Evolution January – September 2014
Balance sheetas of September, 30th
(Thousands of €)2014 2013
Goodwill 80,619 82,190
Other non-current assets 91,573 83,552
Cash and cash equivalents 204,349 243,088
Current financial assets 110,683 53,433
Non-Group current financial assets 25,459,077 36,160,066
Other current assets 45,427 38,295
Total assets 25,991,728 36,660,624
Owners' Equity 427,469 403,610
External Partners 0 161
Non-current liabilities 17,805 18,628
Current liabilities 25,546,454 36,238,225
Total equity and liabilities 25,991,728 36,660,624
- 25 -
October 2014
Business Evolution January – September 2014
P/L
Thousands of € 3Q 2014 3Q 2013 % 9M 2014 9M 2013 %
Revenues 79,505 72,537 9.6% 249,035 225,918 10.2%
Expenses (24,237) (23,652) 2.5% (74,195) (74,435) -0.3%
EBITDA 55,268 48,885 13.1% 174,840 151,483 15.4%
EBIT 53,668 47,162 13.8% 170,030 146,224 16.3%
Financial results 397 506 -21.5% 1,908 2,911 -34.5%
Share of profit (loss) of associates 326 (161) 302.5% 1,058 (404) 361.9%
EBT 54,391 47,507 14.5% 172,996 148,731 16.3%
Net Profit 38,495 33,142 16.2% 122,229 105,160 16.2%
- 26 -
October 2014
Business Evolution January – September 2014
EBITDA 9M 2014/2013 [€ Mill.] Net Profit 9M 2014/2013 [€ Mill.]
Comparison with 9M 2013
Revenues 9M 2014/2013 Costs 9M 2014/2013
Margins
[€ Mill.] [€ Mill.]+ 10.2% - 0.3%
+ 15.4% + 16.2%
249.0 225.9
9M 2014 9M 2013
74.274.4
9M 2014 9M 2013
174.8 151.5
9M 2014 9M 2013
122.2 105.2
9M 2014 9M 2013
- 27 -
October 2014
Business Evolution January – September 2014
30.5% 32.6% 29.8%32.9%
3Q14 3Q13 9M14 9M13
45.2%50.2%
43.6%50.9%
3Q14 3Q13 9M14 9M13
67.5% 65.0% 68.3% 64.7%
3Q14 3Q13 9M14 9M13
Efficiency & ProfitabilityROE Evolution EBIT/Revenues Ratio Evolution
% ROE % EBIT/Revenues
% Cost/EBIT % Efficiency
Cost/EBIT Ratio Evolution Efficiency Ratio Evolution
36.5% 33.1%40.1%
34.7%
3Q14 3Q13 9M14 9M13
- 28 -
October 2014
Business Evolution January – September 2014
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 29 -
October 2014
Business Evolution January – September 2014
Business drivers: Highly liquid market • Spanish blue-chips among the most liquid stocks in the EMU
Source: Bloomberg 1) As of 30/09/14
RK9M14
1
2
3
4
5
6
7
8
9
10
22
27
33
Company Daily avg. 9M14
Turnover (€ Biilion)RK
105.6
99.6
91.5
86.9
81.4
71.8
68.4
67.5
66.6
64.3
47.6
41.6
36.4
1
2
3
4
5
6
7
8
9
10
20
21
28
0.55
0.52
0.48
0.46
0.43
0.38
0.36
0.35
0.35
0.34
0.25
0.22
0.19
4.460%
1.660%
2.720%
1.560%
2.470%
2.650%
2.770%
1.660%
6.220%
3.330%
0.900%
1.470%
1.180%
Relative weight at EuroStoxx50 (%)1)
Turnover (€ Biilion)
- 30 -
October 2014
Business Evolution January – September 2014
4Q13
1.193%
1.029%
1.021%
1.037%
1.010%
0.984%
0.927%
0.988%
1.022%
0.960%
1.095%
1.303%
1.102%
0.359%
0.332%
0.336%
0.359%
0.304%
0.290%
0.275%
0.271%
0.273%
0.249%
0.304%
0.322%
0.289%
0.070%
0.062%
0.063%
0.068%
0.066%
0.068%
0.064%
0.062%
0.061%
0.058%
0.059%
0.062%
0.056%
201309
201310
201311
201312
201401
201402
201403
201404
201405
201406
201407
201408
201409
The average spread continue to narrow in increasing liquidity:
– IBEX 35® average spread falling by 1.4 basis points from September 2013
– Medium and small cap companies have improved the average spread 7.0 and 9.1 basis points respectively
Business drivers: Highly liquid market • Quality of spreads and best market impact for Spanish stocks
Source: Market annual and monthly reports
Avg.Spread (%) Avg.Spread (%) Avg.Spread (%)
- 31 -
October 2014
Business Evolution January – September 2014
• Distribution by markets of business volume of the IBEX 35® companies (2008 – 1H14)
Diversified market
Source: Interim Reports from listed companies obtained from CNMV
Spain EU OCDE Rest
19%
20%
25%
- 32 -
October 2014
Business Evolution January – September 2014
Q&A