bme financial results 3q2013

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October 2013

Business Evolution January – September 2013

Business Performance

January –September 2013

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October 2013


Disclaimer

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October 2013


Index

A. Results

B. Business Overview

C. Financials

D. Business Drivers

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October 2013


Index

A. Results


C. Financials

D. Business Drivers

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October 2013


31.0 30.433.0

39.0

33.1

3Q12 4Q12 1Q13 2Q13 3Q13

ResultsNet profit

Net profit increase of 6.8% compared to 3Q12

+6.8% (€ Million)

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October 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 9M 2013

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October 2013


Key ratios benchmarking• Efficiency • ROE

- BME´s data as of 30/09/2013

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

34.7%

11.9%

BME Average PeerGroup

32.9%

48.8%

BME Average PeerGroup

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October 2013


Dividends: Maximizing shareholders´ returns

0.956 0.986

0.40 0.40 0.40 0.40 0.40

0.60 0.60 0.60 0.60

1.016 0.9860.60 0.60 0.60 0.60

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%

Sustainability of Pay-out

• First 2013 interim dividend: 0.4 € / share

• Payment Date for next interim dividend: December, 27th 2013

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October 2013


Index

A. Results


C. Financials

D. Business Drivers

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October 2013


Business Areas

Consolidated Revenues 9M 2013 - %

EBITDA 9M 2013 - %

Equity 37.3%

Clearing & Settlement

32.2%

Listing 5.0%

Information 11.9%

Derivatives 7.3%

Fixed Income 2.6%

IT & Consulting

3.6%

Equity 37.1%

Clearing & Settlement

27.6%

Listing 6.6%

Information 10.9%

Derivatives 9.0%

Fixed Income

2.9%

IT & Consulting

5.9%

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October 2013


154 170

162 165 158

45.1 47.0 48.7 48.2 50.8

8.87.1

10.2 10.612.6

3Q12 4Q12 1Q13 2Q13 3Q13

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.)

71

34

49

70

42

57

68

42

5258

48

59

73

36

48

29.7

6.4 9.028.2

7.6 11.228.2

8.4 12.127.5

9.5 11.129.0

7.314.5

4.0

2.3 2.5 2.72.3 2.1

3.33.5

3.43.9

3.2 3.5

4.3

3.6

4.7

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

Turning point in activity and revenues

Thousands of € 3Q 2013 3Q 2012 % 9M 2013 9M 2012 %

Revenues 28,996 25,978 11.6% 83,211 86,071 -3.3%

Expenses (7,543) (7,746) -2.6% (23,345) (23,946) -2.5%

EBITDA 21,453 18,232 17.7% 59,866 62,125 -3.6%

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October 2013


1,571 1,590 1,593 1,579 1,543

498 528 530 537 616

3Q12 4Q12 1Q13 2Q13 3Q13

Market value registered in Equity Nominal registered in Fixed income

2,1162,069 2,118 2,123 2,15910.7 10.6 10.411.6 12.1

3Q12 4Q12 1Q13 2Q13 3Q13

Securities under custody: Volumes (€ Billion)

Clearing and Settlement

Settlement: Number of trades settled(Million of trades)


Revenues 18,364 19,051 -3.6% 61,829 60,433 2.3%

Expenses (3,266) (3,711) -12.0% (10,198) (10,922) -6.6%

EBITDA 15,098 15,340 -1.6% 51,631 49,511 4.3%

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October 2013


100 97 94 92 87

4.0 4.0 3.6 3.8 3.9

3Q12 4Q12 1Q13 2Q13 3Q13Subscribers (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 8,070 8,510 -5.2% 24,513 26,067 -6.0%

Expenses (1,752) (1,787) -2.0% (5,477) (5,484) -0.1%

EBITDA 6,318 6,723 -6.0% 19,036 20,583 -7.5%

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October 2013


7,9098,675

7,977

11,363

6,215

3Q12 4Q12 1Q13 2Q13 3Q13

• Companies find in the market the mean to adjust debt and reinforce their balances

Investment flows channeled to the Exchange (€ Million)

• Trend of strong activity in investment flows channelled to the exchange continues in 2013: €25.6 billion in the first nine months (+27.7%)

• Scrip dividends totalled €7.8 billion in 9M13 (+21.0% yoy)

Source: FESE (Federation of European Stock Exchanges)

Listing

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October 2013


3Q12 4Q12 1Q13 2Q13 3Q13

29.8

69.9

25.0

45.0

81.6

Listing

AIAF: New listings (Billion €)

Commercial paper Corporate bonds MBS ABS Preferred securities

Effort form issuers in deleveraging continues with a result of reduction in Private Fixed Income listings

Revenues stabilise as a result of equity contribution


Revenues 4,751 4,700 1.1% 14,798 16,166 -8.5%

Expenses (2,191) (2,247) -2.5% (6,758) (6,876) -1.7%

EBITDA 2,560 2,453 4.4% 8,040 9,290 -13.5%

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October 2013


3,397 2,770

16,843

10,3918,997

5,814

26,712

18,477

3Q12 3Q13 9M12 9M13

1,184 1,305

3,8894,053

627456

2,077

1,4441,233 1,207

2,773

3,631

3Q12 3Q13 9M12 9M13

Derivatives

(Thousand of contracts)

Diversified improvement in margins

Stock derivatives contracts tradedIndex derivatives contracts traded

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

(Thousand of contracts)


Revenues 6,485 6,532 -0.7% 20,101 19,140 5.0%

Expenses (2,733) (2,842) -3.8% (8,391) (8,654) -3.0%

EBITDA 3,752 3,690 1.7% 11,710 10,486 11.7%

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October 2013


496

666

340

258

192

75

76

6792

57244,638

422,544

122,193

399,126 381,378

3Q12 4Q12 1Q13 2Q13 3Q13

350

742

249

407

571

3Q12 4Q12 1Q13 2Q13 3Q13

407350

249

571

742

Fixed income

Increasing number of operations

AIAF – Turnover (Billion €)

Repo Cash TradesMBS& ABS

Commercial paper

Corporate bonds

Preferred securities


Revenues 1,873 1,833 2.2% 6,453 7,141 -9.6%

Expenses (725) (753) -3.7% (2,240) (2,280) -1.8%

EBITDA 1,148 1,080 6.3% 4,213 4,861 -13.3%

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October 2013


IT & ConsultingThousands of € 3Q 2013 3Q 2012 % 9M 2013 9M 2012 %

Revenues 3,932 3,844 2.3% 13,306 12,130 9.7%

Expenses (2,385) (2,534) -5.9% (7,477) (7,823) -4.4%

EBITDA 1,547 1,310 18.1% 5,829 4,307 35.3%

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October 2013


Breakdown by business areas


Equity 28,996 25,978 11.6% 83,211 86,071 -3.3%

Clearing & Settlement 18,364 19,051 -3.6% 61,829 60,433 2.3%

Listing 4,751 4,700 1.1% 14,798 16,166 -8.5%

Information 8,070 8,510 -5.2% 24,513 26,067 -6.0%

Derivatives 6,485 6,532 -0.7% 20,101 19,140 5.0%

Consulting & IT 3,932 3,844 2.3% 13,306 12,130 9.7%

Fixed income 1,873 1,833 2.2% 6,453 7,141 -9.6%

Revenues

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October 2013


Breakdown by business areasEBITDA


Equity 21,453 18,232 17.7% 59,866 62,125 -3.6%

Clearing & Settlement 15,098 15,340 -1.6% 51,631 49,511 4.3%

Listing 2,560 2,453 4.4% 8,040 9,290 -13.5%

Information 6,318 6,723 -6.0% 19,036 20,583 -7.5%

Derivatives 3,752 3,690 1.7% 11,710 10,486 11.7%

Consulting & IT 1,547 1,310 18.1% 5,829 4,307 35.3%

Fixed income 1,148 1,080 6.3% 4,213 4,861 -13.3%

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October 2013


Index

A. Results


C. Financials

D. Business Drivers

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October 2013


Balance sheetas of September, 30th

(Thousands of €)2013 2012

Goodwill 82,190 82,190Other non-current assets 83,552 85,757Cash and cash equivalents 243,088 321,108Non-Group current financial assets 36,160,066 36,065,664Other current assets 91,728 40,864

Total assets 36,660,624 36,595,583

Owners' Equity 403,610 431,721External Partners 161 0Non-current liabilities 18,628 18,605Current liabilities 36,238,225 36,145,257

Total equity and liabilities 36,660,624 36,595,583

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October 2013


P/L


Revenues 72,537 70,559 2.8% 225,918 229,145 -1.4%

Expenses (23,652) (24,341) -2.8% (74,435) (75,178) -1.0%

EBITDA 48,885 46,218 5.8% 151,483 153,967 -1.6%

EBIT 47,162 44,207 6.7% 146,224 147,895 -1.1%

Financial results 506 481 5.2% 2,911 2,073 40.4%

EBT 47,507 44,554 6.6% 148,731 149,515 -0.5%

Net Profit 33,142 31,039 6.8% 105,160 105,084 0.1%

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October 2013


EBITDA 9M 2013/2012 [€ Mill.] Net Profit 9M 2013/2012 [€ Mill.]

Comparison with 9M 2012

Revenues 9M 2013/2012 Costs 9M 2013/2012

Margins

[€ Mill.] [€ Mill.]-1.4% - 1.0%

225.9 229.1

9M 2013 9M 2012

74.475.2

9M 2013 9M 2012

151.5 154.0

9M 2013 9M 2012

- 1.6% + 0.1%

105.2 105.1

9M 2013 9M 2012

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October 2013


32.6% 34.5% 32.9% 32.8%

3Q13 3Q12 9M13 9M12

50.2%55.1% 50.9% 50.8%

3Q13 3Q12 9M13 9M12

65.0% 62.7% 64.7% 64.5%

3Q13 3Q12 9M13 9M12

Efficiency & ProfitabilityROE Evolution EBIT/Revenues Ratio Evolution

% ROE % EBIT/Revenues

% Cost/EBIT % Efficiency

Cost/EBIT Ratio Evolution

33.1% 28.9%34.7% 32.4%

3Q13 3Q12 9M13 9M12

Efficiency Ratio Evolution

- 26 -

October 2013


Index

A. Results


C. Financials

D. Business Drivers

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October 2013


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

Source: Bloomberg 1) As of 30/09/13

RK9M13

123456789

10222733

Company Daily avg. 9M13

Turnover (€ Biilion)RK

98.090.484.168.365.364.762.061.558.956.736.835.934.2

123456789

10252627

0.510.470.440.360.340.340.320.320.310.300.190.190.18

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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October 2013


123456789

10

Sept. 2012 Sept. 2013

0.03%0.04%0.06%0.05%0.07%0.05%0.09%0.07%0.09%0.09%

0.070%

0.0020.0030.0060.0020.0800.0090.0040.0170.0140.036

0.07%0.08%0.08%0.11%0.10%0.13%0.23%0.16%0.21%0.21%

0.132%

0.0040.0050.0090.0040.0950.0210.0040.0290.0230.075

The implicit transaction cost for investors measured by the IBEX 35® average spread has improved 6.2 bps since September 2012, moving from 0.132% to 0.07%

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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October 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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October 2013


Q&A