bme financial results 4th. quarter and year 2013

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February 2013

Business Evolution January – December 2013

BusinessPerformance

Fourth quarter andFY/2013

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February 2013


Disclaimer

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February 2013


Index

A. Results

B. Business Overview

C. Financials

D. Business Drivers

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February 2013


Index

A. Results


C. Financials

D. Business Drivers

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February 2013


ResultsNet profit

Net profit increase of 25% compared to 4Q12

+25.0% (€ Million)

30.433.0

39.0

33.1

38.0

4Q12 1Q13 2Q13 3Q13 4Q13

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February 2013


ResultsNet profit

Net profit increase of 5.7% compared to 2012

+5.7%(€ Million)

150.0 154.2 155.1135.5 143.1

2009 2010 2011 2012 2013

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February 2013


Solid operating leverage

Costs Revenues Revenues not linked to volumes Ratio

78%

90%

106% 109% 105% 103%112%

118% 114%

2005 2006 2007 2008 2009 2010 2011 2012 2013

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February 2013


Key ratios benchmarking• Efficiency • ROE

- BME´s data as of 31/12/2013

- Average peer Group figures are calculated using la st results published and not taking account of goodwill impairment charges

35.9%

11.8%

BME Average PeerGroup

32.2%

45.1%

BME Average PeerGroup

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February 2013


Dividends: Maximizing shareholders´ returns

Sustainability of Pay-out

• Proposed supplementary dividend: €0.65 per share

0.956 0.986

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

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% 96%

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February 2013


Index

A. Results


C. Financials

D. Business Drivers

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February 2013


Business Areas

Consolidated Revenues FY 2013 - %

EBITDA FY 2013 - %

- 12 -

February 2013


70

42

57

68

42

5258

48

59

73

36

48

92

6760

28.2 7.6 11.2 28.2 8.4 12.127.5 9.5 11.1 29.0 7.3

14.5 31.211.0 10.8

2.72.3 2.1

3.3 3.5 3.43.9

3.2 3.54.3

3.6

4.7

6.4

4.84.3

10/12 11/12 12/12 1/13 2/13 3/13 4/13 5/13 6/13 7/13 8/13 9/13 10/13 11/13 12/13

170 162 165 158

219

47.0 48.7 48.2 50.8 53.0

7.1

10.2 10.612.6

15.5

4Q12 1Q13 2Q13 3Q13 4Q13

Mile

s de

mill

ones

Equity Market

Equity (Turnover, volume and shares traded)

Turnover (€ Bill.) Shares (Bill.) Trades (Mill.) Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)

Increase the pace of activity in trades and turnover in the last quarter

Thousands of € 4Q 2013 4Q 2012 % FY 2013 FY 2012 %

Revenues 32,745 22,524 45.4% 115,956 108,595 6.8%

Expenses (8,137) (8,125) 0.1% (31,482) (32,071) -1.8%

EBITDA 24,608 14,399 70.9% 84,474 76,524 10.4%

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February 2013


10.6 10.411.6 12.1

13.8

4Q12 1Q13 2Q13 3Q13 4Q13Par Value registered in FI Market value registered in Equity

1,590 1,593 1,579 1,543 1,514

528 530 537 616 676

4Q12 1Q13 2Q13 3Q13 4Q13

2,116 2,1592,118 2,123 2,190

Securities under custody: Volumes (€ Billion)

Clearing and Settlement

Settlement: Number of trades settled(Million of trades)


Revenues 19,608 18,542 5.7% 81,437 78,975 3.1%

Expenses (3,871) (3,111) 24.4% (14,069) (14,033) 0.3%

EBITDA 15,737 15,431 2.0% 67,368 64,942 3.7%

Positive quarter in settlement, balanced in registry

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February 2013


97 94 92 8796

3.94.0 3.6 3.8 3.9

4Q12 1Q13 2Q13 3Q13 4Q13

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)


Revenues 8,481 8,211 3.3% 32,994 34,278 -3.7%

Expenses (2,004) (1,870) 7.2% (7,481) (7,354) 1.7%

EBITDA 6,477 6,341 2.1% 25,513 26,924 -5.2%

Turning point in subscribers

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February 2013


8,6757,977

11,363

6,215 6,547

4Q12 1Q13 2Q13 3Q13 4Q13

• Companies using the market to diversify financing and deleverage

Investment flows channeled to the Exchange (€ Million)

• Trend of strong activity in investment flows channelled to the exchange continues in 2013: €32.1 billion accumulated to December (+11.9%)

• Scrip dividends totalled €10.4 billion FY13 (+17.8% yoy)

Source: FESE (Federation of European Stock Exchanges)

Listing

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February 2013


4Q12 1Q13 2Q13 3Q13 4Q13

29.825.0

30.7

45.0

81.6

Listing

AIAF: New listings (Billion €)

Commercial paper Corporate bonds MBS ABS Preferred securities

Effort form issuers indeleveraging continues with aresult of reduction in PrivateFixed Income listings

Positive contribution of equity to revenues


Revenues 5,053 4,831 4.6% 19,851 20,997 -5.5%

Expenses (2,686) (2,505) 7.2% (9,444) (9,381) 0.7%

EBITDA 2,367 2,326 1.8% 10,407 11,616 -10.4%

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February 2013


4,378 4,537

21,221

14,928

7,796 8,467

34,507

26,945

4Q12 4Q13 FY12 FY13

856

1,525

4,745

5,579

348 543

2,4251,987

1,433 1,542

4,206

5,172

4Q12 4Q13 FY12 FY13

Derivatives

(Thousand of contracts)

Positive activity in the fourth quarter in all underlyings

Stock derivatives contracts tradedIndex derivatives contracts traded

IBEX 35® Futures MiniIBEX 35® Futures IBEX 35® Options Stock Futures Stock Options

(Thousand of contracts)


Revenues 7,713 6,367 21.1% 27,814 25,507 9.0%

Expenses (2,693) (2,607) 3.3% (11,084) (11,261) -1.6%

EBITDA 5,020 3,760 33.5% 16,730 14,246 17.4%

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February 2013


666 340 258 192 212

76

6792

57 69

422,544

122,193

399,126 381,378

127,432

4Q12 1Q13 2Q13 3Q13 4Q13

350

742

281

407

249

Fixed income

Margin improves with the increase in trading through platform

AIAF – Turnover (Billion €)

Repo Cash TradesMBS& ABS

Commercial paper

Corporatebonds

Preferred securities


Revenues 1,975 1,916 3.1% 8,428 9,057 -6.9%

Expenses (965) (733) 31.7% (3,205) (3,013) 6.4%

EBITDA 1,010 1,183 -14.6% 5,223 6,044 -13.6%

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February 2013


IT & Consulting

VT Network

Technical infrastructure services

International consultancy services

Increase in orders channelled through the VT network

New customers in direct connection interfaces and in Proximity/Colocation

Alternative debt market in MexicoAlgerian public debt market modernisation


Revenues 3,670 4,203 -12.7% 16,976 16,333 3.9%

Expenses (2,786) (2,547) 9.4% (10,263) (10,370) -1.0%

EBITDA 884 1,656 -46.6% 6,713 5,963 12.6%

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February 2013


Breakdown by business areasRevenues


Equity 32,745 22,524 45.4% 115,956 108,595 6.8%

Clearing & Settlement 19,608 18,542 5.7% 81,437 78,975 3.1%

Listing 5,053 4,831 4.6% 19,851 20,997 -5.5%

Information 8,481 8,211 3.3% 32,994 34,278 -3.7%

Derivatives 7,713 6,367 21.1% 27,814 25,507 9.0%

Consulting & IT 3,670 4,203 -12.7% 16,976 16,333 3.9%

Fixed income 1,975 1,916 3.1% 8,428 9,057 -6.9%

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February 2013


Breakdown by business areasEBITDA


Equity 24,608 14,399 70.9% 84,474 76,524 10.4%

Clearing & Settlement 15,737 15,431 2.0% 67,368 64,942 3.7%

Listing 2,367 2,326 1.8% 10,407 11,616 -10.4%

Information 6,477 6,341 2.1% 25,513 26,924 -5.2%

Derivatives 5,020 3,760 33.5% 16,730 14,246 17.4%

Consulting & IT 884 1,656 -46.6% 6,713 5,963 12.6%

Fixed income 1,010 1,183 -14.6% 5,223 6,044 -13.6%

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February 2013


Index

A. Results


C. Financials

D. Business Drivers

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February 2013


Balance sheetas of December, 31th

(Thousands of €)2013 2012

Goodwill 82,190 82,190

Other non-current assets 82,041 93,672

Cash and cash equivalents 164,254 185,927

Current financial assets 97,158 83,431

Non-Group current financial assets 38,400,280 36,059,479

Other current assets 77,884 77,362

Total assets 38,903,807 36,582,061

Owners' Equity 392,140 412,631

External Partners 166 200

Non-current liabilities 17,534 20,563

Current liabilities 38,493,967 36,148,667

Total equity and liabilities 38,903,807 36,582,061

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February 2013


P/L


Revenues 81,787 67,026 22.0% 307,705 296,171 3.9%

Expenses (24,770) (23,730) 4.4% (99,205) (98,908) 0.3%

EBITDA 57,017 43,296 31.7% 208,500 197,263 5.7%

EBIT 54,862 41,508 32.2% 201,086 189,403 6.2%

Financial results 354 789 -55.1% 3,265 2,862 14.1%

EBT 54,950 42,157 30.3% 203,681 191,672 6.3%

Net Profit 37,980 30,389 25.0% 143,140 135,473 5.7%

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February 2013


EBITDA FY 2013/2012 [€ Mill.] Net Profit FY2013/2012 [€ Mill.]

Comparison with FY 2012

Revenues FY 2013/2012 Costs FY 2013/2012

Margins

[€ Mill.] [€ Mill.]+ 3.9% + 0.3%

+ 5.7% + 5.7%

307.7296.2

FY 2013 FY 2012

99.298.9

FY 2013 FY 2012

208.5 197.3

FY 2013 FY 2012

143.1 135.5

FY 2013 FY 2012

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February 2013


30.3%35.4% 32.2% 33.4%

4Q13 4Q12 FY13 FY12

45.1%

57.2%49.3% 52.2%

4Q13 4Q12 FY13 FY12

67.1%61.9% 65.4% 64.0%

4Q13 4Q12 FY13 FY12

Efficiency & ProfitabilityROE Evolution EBIT/Revenues Ratio Evolution

% ROE % EBIT/Revenues

% Cost/EBIT % Efficiency

Cost/EBIT Ratio Evolution Efficiency Ratio Evolution

38.5%29.0%

35.9%32.0%

4Q13 4Q12 FY13 FY12

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February 2013


Index

A. Results


C. Financials

D. Business Drivers

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February 2013


Business drivers: Highly liquid market • Spanish blue-chips are the most liquid stocks in the EMU

Source: Bloomberg 1) As of 31/12/13

RKFY13

1

2

3

4

5

6

7

8

9

10

22

27

33

CompanyDaily avg. FY13

Turnover (€ Biilion)RK

140.8

115.8

113.1

109.7

85.9

84.0

82.4

79.7

74.2

74.1

56.9

47.0

46.4

1

2

3

4

5

6

7

8

9

10

19

26

27

0.55

0.45

0.44

0.44

0.34

0.33

0.33

0.31

0.29

0.29

0.22

0.18

0.18

3.760%

2.650%

1.430%

2.550%

1.940%

5.080%

2.570%

4.170%

3.660%

2.910%

1.350%

1.220%

0.830%

Relative weight at EuroStoxx50 (%) 1)

Turnover (€ Biilion)

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February 2013


1

2

3

4

5

6

7

8

9

10

4Q12 4Q13

0.03%

0.04%

0.05%

0.05%

0.07%

0.05%

0.09%

0.06%

0.08%

0.09%

0.064%

0.002

0.004

0.006

0.002

0.084

0.010

0.004

0.017

0.014

0.047

0.06%

0.07%

0.07%

0.09%

0.10%

0.11%

0.20%

0.11%

0.14%

0.14%

0.112%

0.003

0.004

0.007

0.003

0.109

0.014

0.001

0.020

0.018

0.045

The implicit transactioncost for investorsmeasured by the IBEX35® average spread for4Q13 has improved 4.8bps since 4Q12, movingfrom 0.112% to 0.064%

Business drivers: Highly liquid market • Quality of spreads and best market impact for Spanish stocks

Source: Market annual and monthly reports

CompanyRKAvg.Spread

(€)Avg.Spread

(%)Avg.Spread

(€)Avg.Spread

(%)

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February 2013


• Distribution by markets of business volume of the IBEX 35® companies (2008 – 1H13)

Diversified market

Source: Interim Reports from listed companies obtained from CNMV

Spain EU OCDE Rest

19%

17%

26%

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February 2013


Q&A

bme financial results 4th. quarter and year 2013

Economy & Finance