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TRANSCRIPT
1
Institutional Presentation 2016
2
III. 2016
IV. GROWTH OPPORTUNITIES
I. GENERAL OVERVIEW
II. BUSINESS ENVIRONMENT
3
Cetip is Latin America’s largest depositary of private fixed income securities and Brazil’s largest private asset
clearinghouse. In addition, Cetip is the leading company in providing electronic delivery solutions of information
required for the registration of vehicle financing contracts and restrictions by transit bodies.
Leading position in its two business units:
- Securities Unit: Brazil’s leader in the registration, custody, trading
and settlement of private fixed income securities and OTC
derivatives, acting as a unique and integrated solution for those
markets. It also has an electronic trading platform for the
secondary public and private security market . Further, it carries
out the processing of interbank transfers (DOCs) and settlement of
electronic funds transfers (EFTs) and bank payment slips
- Financing Unit: Offering an integrated private electronic system
for the entry, by financial agents, of financial restrictions related to
vehicle financing transactions, covering all of such registrations in
Brazil, and the custody of such information. It develops products
and services that guide the main stages linked to the vehicle
financing cycle. These products and services speed up credit
analysis and approval, making access to financing easier, faster
and safer
Business model with high predictability of revenues and costs,
and low capex needs
Over 15 thousand clients use Cetip‘s services, among them financial
institutions, investment funds, pension funds, brokerage firms,
consortia, leasing and insurance companies
Listed on Novo Mercado since its IPO in 2009
ICE 5 Board and
Management Others
R$ million 2011 2012 2013 2014 2015 2016 CAGR
11-16
Gross Revenue 844 916 1,074 1,223 1,363 1,546 12.9%
Securities Unit 495 585 690 787 950 1,122 17.8%
Financing Unit 349 330 384 436 413 424 4.0%
Adjusted EBITDA¹ 547 575 652 715 790 912 10.8%
EBITDA Margin 73.7% 72.9% 71.8% 70.4% 70.2% 70.9%
Adjusted Net Income² 371 423 504 563 625 639 11.5%
Net Margin 50.0% 53.6% 55.4% 55.4% 55.5% 49.6%
Net Debt 930 601 230 124 201 (102) (164%)
Net Debt / EBITDA 3 1.7x 1.0x 0.4x 0.2x 0.3x -0.1x
12.1% 0.2% 87.7%
Notes: (1) Adjusted EBITDA excludes share-based incentives and equity in the results of associate; (2) Adjusted Net Income excludes share-based incentive
without cash disbursement, amortization of intangible assets from the acquisition of GRV and the tax benefit from the goodwill amortization; (3) Calculated based
on the EBITDA of the last 12 months; (4) Position on December 29, 2016 (percentages exclude treasury shares); and (5) Intercontinental Exchange.
Highlights
Cetip Overview
Main Financial Indicators
Shareholder Structure 4
4
Clients
• Integrating Brazilian financial market, Cetip is Latin America´s largest depository of private fixed
income securities and Brazil´s largest private asset clearing house;
• Complete solution for financial instruments, from the analysis of potential issuances, registration
and custody until trading, settlement, risk management and market data;
• Leading company in providing electronic delivery solutions of information required for the
registration of contracts and financial restrictions by transit bodies.
• Financial Institutions;
• Mutual Funds;
• Pension Funds;
• Insurers and Consortia;
• Corporations;
• Brokerage Houses and Broker Dealers;
• Leasing Companies;
• Securitization Companies.
Cetip Overview
International Peers
5
Cetip’s Timeline
1
9
8
4
Cetip is established as a
not-for-profit organization
2013
- Amendment of the
company’s bylaws,
seeking to improve
Cetip’s corporate
governance
- Launching, in partnership
with FNC, of the real
estate appraisal platform
2011
- Cetip’s brand
repositioning
- ICE becomes a
shareholder with 12%
stake
- Advent is no longer a
shareholder
2009
- Advent becomes a
shareholder with a 32%
stake
- IPO and listing at Novo
Mercado of BMF
Bovespa
1994
Beginning of OTC
Derivatives
registration
1986
Cetip starts its
operations
1988
Agreement with Anbima to
operate SND (National
System of Debentures)
2008
Demutualization
process: creation of
Cetip S.A.
2010
Acquisition of GRV
Solutions, which today
represents the Financing
Unit of Cetip. The
acquisition was financed
by the company’s first
issuance of debentures
2012
Cetip’s shares are
included in the
IBOVESPA and IBrX-50
indexes
2015
Cetip Trader becomes
Bacen’s dealer splatform
(Brazilian Central Bank)
2016
- Board of Directors and
shareholders of Cetip and
BM&FBovespa approve
the terms for the merger
of both companies
(transaction awaiting
regulatory approvals)
6
IPO (Oct/2009)
Other
55.6%
Board
0.6% Santander
2.8%
Bradesco
4.4%
Itaú
Unibanco
10.1%
Advent
18.1% FEMCO
8.4%
Foreign
Investors
59.3%
Local
Investors
38.0%
Individuals
2.7%
ICE
12.1%
Board +
Management
0.2%
Others
87.7%
Current (Dec/2016) (1)
Shareholder Structure
Note: (1) Excludes treasury shares.
7
0
50
100
150
200
250
300
350
400
450
0
50
100
150
200
250
300
350
400
450
500
Volume (R$ million) CETIP3 Ibovespa
CTIP3 vs. Ibovespa since IPO as of 12/29/2016 (Base 100 – 10/27/2009)
(R$ million) (12 months rolling average) (12 months rolling average)
Source: Bloomberg
Volume R$ (million) Base 100
CTIP3 - Average Daily Traded Volume CTIP3 – Average Daily Number of Trades
+328.7%
-5.4%
CTIP3 Performance
CTIP3 LTM (Dec/2015 to Dec/2016)
+24.1% CTIP3
+38.9% Ibovespa
-
20
40
60
80
Mar
-11
Jun
-11
Sep
-11
De
c-1
1M
ar-1
2Ju
n-1
2Se
p-1
2D
ec-
12
Mar
-13
Jun
-13
Sep
-13
De
c-1
3M
ar-1
4Ju
n-1
4Se
p-1
4D
ec-
14
Mar
-15
Jun
-15
Sep
-15
De
c-1
5M
ar-1
6Ju
n-1
6Se
p-1
6D
ec-
16
-
500
1,000
1,500
2,000
2,500
Mar
-11
Jun
-11
Sep
-11
De
c-1
1M
ar-1
2Ju
n-1
2Se
p-1
2D
ec-
12
Mar
-13
Jun
-13
Sep
-13
De
c-1
3M
ar-1
4Ju
n-1
4Se
p-1
4D
ec-
14
Mar
-15
Jun
-15
Sep
-15
De
c-1
5M
ar-1
6Ju
n-1
6Se
p-1
6D
ec-
16
8
Cetip’s Investment Thesis
High exposure to growth in fixed income and
credit markets
Resilient, diversified and vertically integrated
business model
Strong cash generation with low execution
risk and high predictability
Asset light
Dividend yield growth
9
2016 Gross Revenue:
R$ 1,545.9 million
Securities Unit
Types of Revenue:
Financing Unit:
Contracts
System
(Sircof)
41.9%
Other
0.5 %
Other
41.0%
Revenues
that depend
on Stock
59.0%
Short term economical instability
has little impact on revenues that
depend on stock
Market Data and
Development of
Solutions
18.6%
Business Units with No Correlated Risks
Other
8.6%
Transactions
15.2%
Monthly
Utilization
20.2% CSD and Trade
Repository
Maintenance Fee
45.8%
Registration
10.1%
Diversified Revenue Profile
Revenue diversification by business unit and types of revenue
SNG
38.9%
72.6% 27.4%
10
Notes: (1) Before tax expenses; (2) Excludes expenses with option program; (2) D&A – Depreciation and Amortization.
Strong Cash Generation, with Low Execution Risk and High Predictability
Predictable Cost Structure Low Investments Needs
Operating Cash
Generation1 (R$ million):
% Net Revenue
Cost Structure with High
Predictability (2016)
CAPEX
(R$ million)
Adjusted Operating Expenses2
(ex-D&A3) (R$ million)
% Net Revenue Personnel
59.8%
Outsourced
Services
26.4%
G&A
11.5%
Other
2.2%
% Net Revenue
+ High Operating Cash Generation +
26.6
43.5
56.6 60.0
89.4
97.9
3.6%
5.5%
6.2% 5.9%
7.9%
7.6%
2011 2012 2013 2014 2015 2016
545.2 629.9
701.2 754.2
952.4
1,081.7
73.5% 79.6% 77.2%
74.2%
84.6% 84.1%
2011 2012 2013 2014 2015 2016
195,0 214.1 256.4 300.7 335.2 374.6
26.3% 27.1% 28.2% 29.6% 29.8% 29.1%
2011 2012 2013 2014 2015 2016
11
• Registration of fixed income
securities and OTC
derivatives
• Central depository of fixed
income instruments
• Central depository of
OTC derivatives
• Collateral management in
bilateral transactions
• Mark to Market
• Registration of all
operations performed
• Trading platform for
fixed income securities
Registration
and
Maintenance
Settlement
Negotiation
Collateral
Management
• DVP Settlement
(deliver versus payment)
• Settlement processing
Unique and Integrated Solution for the Fixed Income and OTC Derivatives Markets
Business Model: Securities Unit
12
2
Financial Institution
1
Consumer Requests loan for vehicle financing
4
Financial Institution
Signs loan contract and provides credit
3
SNG query to check if there are any restrictions
on the vehicle and insertion of pre-lien
6
The transit and vehicle authority registers the finance contract
7
Issuance of the vehicle registration document
(CRV) with lien after SNG query
Transit and vehicle authority verifies the pre-lien database to
ensure the correct issuance of CRVs with liens, avoiding frauds
Contracts System Transmits contract
information to be registered by the transit and vehicle
authority
5
Transit
and
Vehicle
Authority
Private Environment Public Environment
Business Model: Financing Unit
13
Market Share (2016) – 73.6%
Business Model: Contracts System
Transmission of information for vehicle financing contracts registration
AM
AC RO
RR AP
PA
MT
TO
MA CE
BA
GO
DF
MG
ES
RJ
MS
SP
PR
SC
RS
RN
PB PE
SE
PI
AL
71.8%
72.2%
72.8% 73.0%
72.3%
73.2%
73.9% 73.7%
74.8%
75.3% 75.4%
74.5%
Market-share Evolution
14
More Solid Regulatory Environment for the Financing Unit
• Financings in general: Resolution No 4.088/2012, as amended by Resolution No 4.399/2015
• Vehicle Financings: Circular Letter No 3.616/2012, as amended by Circular Letter No 3.585/2013, as amended by Circular Letter No 3.596/2013 (effective since April 2013)
• Real Estate Financings: Circular Letter No 3.747/2015, as amended by Circular Letter No 3.767/2015, as amended by Circular Letter No 3.730/2015 (effective as of March 2017, as determined by Circular Letter No 3.793/2016)
• Cetip registers credit operations related to vehicles given as collateral
(Brazilian Central Bank)
National Transit Authority
• Letter No 67/2011
• Resolution No 470/2013
• Ordinance No 18/2014, as amended by Ordinance No 15/2016, as amended by Ordinance No 135/2016
• Cetip has been accredited by DENATRAN to have access to its database for 5 years and has recently requested renewal of accreditation
15
III. 2016
IV. GROWTH OPPORTUNITIES
I. GENERAL OVERVIEW
II. BUSINESS ENVIRONMENT
16
30.7%
15.1%
20.6% 18.8%
16.4% 14.7%
11.3%
6.7%
-3.5%
2008 2009 2010 2011 2012 2013 2014 2015 2016
Credit Growth
1,234
1,421
1,713
2,034
2,368
2,711
3,018 3,219
3,107
35.1%
40.5%
45.4%
49.1%
53.7% 52.6% 53.1%
54.5%
49.3%
0.0 %
10. 0%
20. 0%
30. 0%
40. 0%
50. 0%
60. 0%
-
500
1,00 0
1,50 0
2,00 0
2,50 0
3,00 0
3,50 0
4,00 0
2008 2009 2010 2011 2012 2013 2014 2015 2016
Volume (R$ billion) % GDP
CAGR 08-16: 12.2%
Credit Expansion in Brazil
Source: Brazilian Central Bank
Credit Market is Still Expanding, but at a Lower Pace
1
Note: (1) Credit growth compares Dec/16 vs. Dec/15
17
Vehicles Financing - Challenging Environment in 2016
3,489 3,268 3,937 3,870 3,590 3,517 3,160 2,339 1,740
4,461 3,541
3,920 3,815 3,359 3,241 3,233
2,973 2,914
2008 2009 2010 2011 2012 2013 2014 2015 2016
New Vehicles Used Vehicles
(thousands)
Source: Fenabrave
-12.4%
Vehicle Acquisition Loans – In the Period
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Personal Loans Corporate Loans
(R$ billion)
91 92 105
154
198 216 213
203 CAGR 07-16: 6.3%
178
89.6% 89.5% 89.7% 90.9% 89.7% 89.6% 89.9% 90.7% 90.7%
10.4% 10.5% 10.3%
9.1%
10.3% 10.4% 10.1%
9.3%
9.3%
Vehicle Acquisition Loans – Total Outstanding
Source: SNG / Fenabrave
72.0% 67.5%
72.3% 67.3% 63.6% 64.2% 61.4% 58.3% 54.8%
47.2% 38.1% 35.5% 32.7%
28.3% 25.9% 24.2% 22.3% 21.8%
55.6% 48.2% 47.6% 44.1% 39.7% 37.6% 34.5% 30.6% 28.2%
2008 2009 2010 2011 2012 2013 2014 2015 2016
% New Vehicles Financed / New Vehicles Sold
% Used Vehicles Financed / Used Vehicles Sold
% Total Vehicles Financed/Total Vehicles Sold
% Credit Penetration: Vehicles Financing/ Vehicle Sales
Source: Fenabrave
Source: Brazilian Central Bank
Individuals Delinquency Ratio – Vehicle Financing
3.7%
5.2%
6.7%
7.1%
6.3% 5.7%
5.0%
4.4%
3.9% 4.2% 4.5%
4,6%
4.7%
Individuals Delinquency
Avg Individuals Delinquency(Mar/11 - Dec/16)
90.6%
9.4%
158
5.2%
1
Note: (1) As of Dec/16.
7,950
6,809
7,857 7,685 6,949 6,758 6,393
5,312 4,654
18
Real Estate Financing - Significant Room for Growth
44 60
84
131
189
255
341
432
500 534
1.6%
2.0%
2.6%
3.5%
4.6%
5.8%
7.0%
7.8%
8.4% 8.5%
0.0 %
1.0 %
2.0 %
3.0 %
4.0 %
5.0 %
6.0 %
7.0 %
8.0 %
9.0 %
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Personal Mortgages % GDP
CAGR 07-16: 32.0%
Source: Brazilian Central Bank
Mortgages for Individuals – Total Outstanding
(R$ billion)
19
**
*Bank Deposit certificate
** Interbank Deposit
Expansion of Stocks of the Main Fixed Income and OTC Derivatives Assets
2010 2011 2012 2013 2014 2015 2016
Other Derivatives/Structured Notes Currency Forward Contracts Swaps
427
584
(R$ billion)
848
1,034 1,114
2010 2011 2012 2013 2014 2015 2016
Investment Funds Debentures CDB DI Other Letra Financeira
2,828 3,182
3,454
3,769
(R$ billion)
4,137
4,433
29% 29% 33% 33% 34% 36% 12%
12%
15% 16%
16%
17%
30% 23%
19% 16%
13% 11%
21% 23%
18% 17%
15% 11%
7%
8% 8%
11%
14% 15%
1% 5%
7%
8%
8%
9%
70% 69%
74% 70% 58% 46% 22%
25%
21%
22% 29%
22%
32%
12% 8%
5%
6%
8%
2,047
Fixed Income Volume Stock1 OTC Derivatives Volume Stock
CAGR 10-16: 9.9% CAGR 10-16: 25.8%
*
Source: Cetip 1 Fixed income stock includes Structured Notes
4,996
40%
16%
11%
11%
14%
8%
46%
17%
37%
1,693
20
Slower Pace in the Debentures’ Market So Far
11,324 7,290
23,810
41,943 35,212
64,949 70,154 74,594
62,040 62,111
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Volume of Issuance (R$ billion)
*
70
29
73
150 171
291 283 298
200
138
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Number of Issuance
1 7
39
85 92
139
155 154
84 72
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Number of New Issuers
Source: Cetip
* non-leasing debentures
21
IV. GROWTH OPPORTUNITIES
I. GENERAL OVERVIEW
II. BUSINESS ENVIRONMENT
III. 2016
22
R$ million
Gross Revenue 398.9 1,545.9
Securities Unit 285.1 1,122.4
Financing Unit 113.8 423.5
Net Revenue 334.8 1,286.8
Adjusted EBITDA 235.6 912.3
Adjusted EBITDA Margin 70.4% 70.9%
Adjusted Net Income (cash earnings): 167.1
638.7
Adjusted Net Margin 49.9% 49.6%
Financial Highlights
4Q16 X 4Q15 2016 X 2015
12.2%
13.5%
14.3%
15.3%
-4.5 p.p.
13.4%
18.1%
14.3%
15.4%
0.7 p.p.
-5.9 p.p.
9.2%
0.6 p.p.
4.9% 2.3%
2.7%
23
39.8 43.1 45.1
150.2 171.0
1,496 1,484 1,610
1,256
1,485
4Q15 3Q16 4Q16 2015 2016
Transaction Revenues Transactions/ Working day
2.2 2.0
2.0
8.2 7.8
2.4 1.6
2.3
9.8
9.0
4Q15 3Q16 4Q16 2015 2016
Volume Renda Fixa Volume Derivativos/ COE
3.2 3.7 3.8 3.0 3.6
2.8 2.4 2.3 2.3
2.4
4Q15 3Q16 4Q16 2015 2016
Receita Renda Fixa Receita Derativos/ COE
Volume Renda Fixa Volume Derativos/ COE
Other 8.6%
Securities Unit Gross Revenue Evolution
Gross Revenue - Securities Unit
Registration Revenues 1
CSD and Trade Repository Maintenance Fee Revenues 2
Transactions Revenue
Securities Unit Revenue Breakdown in 4Q16
Notes: 1. Registration: OTC Derivatives revenues include Other Registration Services revenues 2. CSD and Trade Repository Maintenance Fee Revenues: OTC Derivatives revenues include End Users Revenues
(R$ million)
Registration 10.3%
Monthly Utilization
19.8%
Transactions 15.8%
Fixed Income Revenues OTC Derivatives Revenues OTC Derivatives Volume (R$ trillion)
Fixed Income Volume (R$ trillion)
(R$ million)
(R$ million) (R$ million)
251.1 279.8 285.1
950.5
1,122.4
4Q15 3Q16 4Q16 2015 2016
CSD and Trade Repository
maintenance fee 45.5%
+13.5%
+18.1%
+1.9%
30.1
113.5
29.4 27.5
121.9
108.2
392.1
129.7 128.9
514.0
24
Registration and Identification of CDB (Time Deposits)
Fonte: Cetip
• Registration:
R$ 50 thousand
• Final Beneficiary
Identification:
R$ 1 million
• Registration and
Final Beneficiary
Identification:
R$ 5 thousand
• Secondary market
trades: R$ 0
BEFORE 3709 AFTER 3709
CDB Stock
Re-Pricing of CDB Products
ORIGINAL
PRICING
Registration Fee
(varies according
to client group
and
CDB maturity)
NEW
PRICING
Registration Fee
(single, simplified and does
not vary according to
CDB maturity)
Maintenance Fee
(decreases by volume and
charged according to
permanency
and not CDB maturity)
Circular Letter 3709
12% 29% 42% 53% 62% 67% 75% 79%
88% 71% 58% 47% 38% 33% 25% 21%
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
497 1475 1493 1500 1500 1557 1599 1646
Fonte: Cetip
Before
3709
+
After
3709
CDB stock (R$ billions)
25
Increase in Transactions Volume
Source: Cetip
685
730 836
1,0
23
1,2
93
1,2
36
1,2
76
1,2
51 1,3
99
1,4
93
1,4
41
1,5
12
1,5
35
1,3
88
1,4
30
1,4
00
1,4
05
1,4
64
1,4
50
1,5
59
1,4
21
1,4
80
1,5
34
1,5
65
1,6
48
Dec-1
4
Jan
-15
Fe
b-1
5
Ma
r-15
Ap
r-15
Ma
y-1
5
Jun
-15
Jul-1
5
Au
g-1
5
Se
p-1
5
Oct-
15
Nov-1
5
Dec-1
5
Jan
-16
Fe
b-1
6
Ma
r-16
Ap
r-16
Ma
y-1
6
Jun
-16
Jul-1
6
Au
g-1
6
Se
p-1
6
Oct-
16
Nov-1
6
Dec-1
6
0.80 0.81 0.78 0.77
0.68
0.46 0.44 0.42
0.48 0.46 0.45 0.45
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
(thousand) (R$ per transaction) +140%
-41%
~50%
Shared economies of scale
Transaction tax
during first business hours:
R$ 0.37
Transaction tax
during first business hours:
Average of R$ 0.745
ORIGINAL PRICING PROPOSED PRICING
Average Daily Number of Transactions Average Price per Transaction
26
4Q15 3Q16 4Q16 2015 2016
Novos Usados
29.4% 26.6% 28.3%
30.6%
28.2%
4Q15 3Q16 4Q16 2015 2016
Usados
Novos
% Veículos financiados / veículos vendidos
Number of Vehicles Financed (‘000)
Gross Revenue - Financing Unit
Financing Unit Gross Revenue Evolution
Number of Vehicles Sold (‘000)
Contracts System Market Share
Financing Unit Revenue Breakdown in 4Q16
New Used % Vehicles Financed / Vehicles Sold
(R$ million)
SNG 37.4%
Contracts System 41.9%
Market Data
20.3%
Other 0.4%
72.6% 74.1% 75.1%
70.8%
73.6%
4Q15 3Q16 4Q16 2015 2016
104.2 105.6 113.8
412.6 423.5
4Q15 3Q16 4Q16 2015 2016
+9.2%
+7.7%
+2.7%
4,345 4,381 4,347
16,516
17,366
1,228 1,167 1,277
4,654 5,312
27
Adjusted Operating Expenses Evolution
Adjusted Operating Expenses, EBITDA and Net Income
Notes: 1. Excludes expenses with share-based incentive, depreciation and amortization 2. Includes expenses with board members and advisory committee
1
Adjusted EBITDA Evolution Adjusted Net Income Evolution
Adjusted Operating Expenses Breakdown in 4Q16 (R$ million)
(R$ million)
Personnel 60.3% 2
Outsourced Services 26.6% G&A
10.9%
Other 2.2%
(R$ million)
204.4 230.3 235.6
790.3
912.3
69.7%
71.4%
70.4% 70.2%
70.9%
4Q15 3Q16 4Q16 2015 2016
Adjusted EBITDA EBITDA Margin %
159.4 162.8 167.1
624.5 638.7
54.4%
50.4% 49.9%
55.5%
49.6%
4Q15 3Q16 4Q16 2015 2016
Net Income Net Margin %
88.6 92.4 99.2
335.2 374.6
4Q15 3Q16 4Q16 2015 2016
+11.9% +11.8%
+7.3%
28
CAPEX
CAPEX Evolution CAPEX Breakdown in 4Q16
Cetip’s key projects: (i) Big Data; (ii) Cetip Trader; (iii) Contracts System; (iv) Depository; (v) Electronic Appraisal; and (vi) Real Estate Platform.
4Q16 Highlights
36.2%
63.2%
0.6%
Maintenance and Expansion of
Capacity Product Development
Offices Settlement
(R$ million)
43.3
23.8 20.2
89.4 97.9
14.8%
7.4% 6.0%
7.9% 7.6%
4Q15 3Q16 4Q16 2015 2016
CAPEX % CAPEX / Net Income
+9.5%
-14.9%
-53.3%
Cetip’s key projects: (i) Big Data; (ii) CCP; (iii) Cetip Trader; (iv) Contracts System; (v) Depository; (vi) Electronic Appraisal; (vii) Liens on Financial Instruments and (viii) Real Estate Platform.
2016 Highlights
29
259.3 272.5 267.8
952.4
1,081.7
88.5%
84.4%
80.0%
84.6% 84.1%
4Q15 3Q16 4Q16 2015 2016
Cash Flow % Net Revenue
+13.6%
+3.3%
-1.7%
Strong Cash Generation
Cash Flow From Operations¹ (% Net Revenue)
Note: 1. Operational cash generation before income tax and social contribution and the allocation of excess cash for investment
Net Debt & Net Debt / Adjusted EBITDA (LTM)
(R$ million)
Net Debt % Net Debt / Adjusted EBITDA
200.6
-15.5
-101.9
0.3
0.0
-0.1
-0.3
-0.1
0.1
0.3
0.5
0.7
0.9
4Q15 3Q16 4Q16
30
Buyback Program
Third Share Buyback Program:
• Valid from: March 2016 until March 2017
• Approved limit: 3,200,000 shares, or 1.23% of total shares outstanding
Dividends and IOC
Creating Value for Shareholders
4Q16 2016
Interest on shareholder’s capital R$ 29.4 million R$ 108.3 million
Proposed dividends R$ 98.6 million R$ 378.4 million
Total distribution R$ 127.9 million R$ 486.7 million
% of Net Income 85.0% 85.0%
31
III. 2016
I. GENERAL OVERVIEW
II. BUSINESS ENVIRONMENT
IV. GROWTH OPPORTUNITIES
32
Cetip | Certifica
Seal that ensures the
identification and actual
registration of assets on
behalf of the beneficial
owner
Cetip | Trader
+ ICE Link
Complete solution
for trading and post
trading of fixed
income instruments
Cetip |
Colateral
Constitution of
financial assets
collateral for the
financial market
CCP
Central
Counterpart for
fixed income and
OTC derivatives
markets
Funding
Instruments and
Depository
Compliance with
Resolution 3,709 and
new products related
to bank funding (Letra
Imobiliária Ga-rantida
and others)
COE
Funding
instrument with
profitability
combining fixed
and variable
income
Securities Business Unit
33
To draw superior relationship model,
reflecting the defined prioritization, but never
fail to meet other accounts (lower focus)
Invest to provide the
best solution and
service available for
OTC market (e.g.:
processes more
efficient and safe)
Client Centricity
Keep all communication
channels open to
capture feedbacks and
deploy them (loops)
Identify the different types of
Cetip’s customers,
segment them and
prioritize them by
representation on Cetip’s
revenue
Securities Business Unit: Client Centricity Project
34
Negotiation
Clearing
Counterpart A
“Client”
Clearing Member Clearing Member
Counterpart B
“Client” Negotiation
CCP
OTC Derivatives
• Forward contracts of currency and
indexes
• Flexible options of currency, stocks
and indexes
• Swaps
Main features of CCP
Segregated special equity
Settlement fund
Collateral management
Monitoring of risk exposure
Margin call
Settlement
Expansion of Services Offered
for OTC Derivatives Markets
Securities Business Unit: CCP
35
Securities Business Unit: Structured Notes – COE
0.2 0.4
1.0
1.6
2.2
2.8 2.7 3.0
3.3 3.5
3.8 3.7 3.8 4.1
4.6
5.1
5.6 5.9
6.5
7.0 7.1
7.4 7.6 7.7 7.8
8.2 8.5 8.6 8.7 8.8
9.0 9.4 9.4 9.5 9.5 9.5
Jan-1
4
Feb
-14
Ma
r-1
4
Apr-
14
Ma
y-1
4
Jun-1
4
Jul-1
4
Aug-1
4
Sep-1
4
Oct-
14
No
v-1
4
De
c-1
4
Jan-1
5
Feb
-15
Ma
r-1
5
Apr-
15
Ma
y-1
5
Jun-1
5
Jul-1
5
Aug-1
5
Sep-1
5
Oct-
15
No
v-1
5
De
c-1
5
Jan-1
6
Feb
-16
Ma
r-1
6
Apr-
16
Ma
y-1
6
Jun-1
6
Jul-1
6
Aug-1
6
Sep-1
6
Oct-
16
No
v-1
6
De
c-1
6
100%
Market Share (2)
Volume in Custody 1
(R$ Billion)
Notes 1. Assets deposited on the last business day of each period. 2. 100% market share in registration.
What we expect:
Issuance Volume
Issuers
Individual Investors
Institutions
Regulated Public Offer
(Instruction CVM 569 dated 14/10/2015)
36
Insurance
Expansion of
services for the
insurance market
Cetip
Contratos
Product
penetration
expansion from
the adhesion of
new states
Real Estate Platform
Automates the process of
mortgage granting, integrating
appraisers and financial
market, and allow the
expansion of services from
the regulation of
Resolution 4,088
Electronic
Formalization
Implementation
of an electronic
formalization flow for
vehicle financing
Market Data
Cetip | Performance
Cetip | InfoAuto Análise
Cetip | Panorama
Cetip |
Infoauto
Pagamentos
Automates and
speeds up the
process of
vehicle financing
Financing Business Unit
37
Electronic Formalization:
• The platform processes the financing transactions electronically and automatically
• Recognition and electronic data extraction based on images
• Validation of the customer’s documentation and collateral based on the proposed financing contract and
public and private data bases
• Agility, standardization and security to the operations
Extraction and
electronic validation
Alienation, contract
registration and vehicle
report
Custody and
post-sales
Upload Scanner
Smartphone Tablet Data
extraction
Bank system
Dossier
Collateral
Contract
registration
Lien
Vehicle
appraisal
report
AC
TU
AL
PR
OC
ES
S
Custody
Call Center Charging
Amendments
Multiplatform
capture
Physical Custody Collection
Digital
Signature
Financing Business Unit: Electronic Formalization Project
38
Electronic Formalization Platform: Electronic Appraisal Report
The Report certifies the vehicle situation
at the time of solicitation.
Offers standardization and security for
the financing market, as well as
transparency for the end consumer at
the time of purchase of the vehicle.
This is Cetip’s first product directed to
the vehicle resale market and the first
product that will be available for use by
mobile app.
Purchas of
Financed
Vehicle
Delivery
of Vehicle
Appraisal
Report
Database
consultation
Vehicle
Dealers Costumers
Upload
Smartphone
Tablet
Data
Extraction
Vehicle
Appraisal
Report
Report
Official
databases Internal
databases
Other
external databases
Electronic
Verification
Verification of Liens
1
2 4
5
3b 3a
Electronic Formalization Platform
39
Real Estate Financing - Units Major Projects
Real Estate Financing - Volume
220 266 285 365 375
236 150
189 201 181
221 246
229
192
2010 2011 2012 2013 2014 2015 2016
SBPE FGTS
409 467 466
586 621
465
342
(thousands)
31.8 44.7
54.7 76.9 81.5
54.8 36.0
11.3
13.5 13.4
18.2 22
21.7
19.3
2010 2011 2012 2013 2014 2015 2016
SBPE FGTS
43,0
58,2 68,1
95,1 103,5
76,5
55,3
(R$ billions)
4088
Electronic
Registration
Appraisal
Platform
• Management platform for real estate
appraisal processes
- Appraisers allocation
- Process monitoring
- Robust record of real transactions
• Solution for Central Bank's 4,088
resolution, normative that regulates
the providing of information on real
estate financing contracts
• Process automation in registration
of financed real estate, digitally
connecting financial institutions and
notary offices
Real Estate Platform – Services
*SBPE - Brazilian System of Saving and Loans
**FGTS - Brazilian Government Severance Indemnity Fund
* **
* **
40
Contacts
Willy Jordan
Marcela Souza
Ciro Campanatti
Filipe Scalco
This presentation was issued by CETIP S.A. – Mercados Organizados (“Cetip”, “Company”). Cetip is authorized to
operate by the Brazilian Securities and Exchange Commission (“CVM”) and regulated by both CVM and Brazilian
Central Bank.
This presentation may include statements representing expectations about future events or results of Cetip. These
statements are based upon projections and analyses which reflect present views and/or expectations of the
Management of the Company with regards to its performance and to the future of its business. Risks and
uncertainties related to the Cetip’s businesses, to the competitive and market environment, to the macro-economical
conditions and other factors described in “Risk Factors” in the Reference Form, filed with the CVM, may cause
effective results to differ materially from such plans, objectives, expectations, projections and intentions.
Investor Relations [email protected]