bme financial results, q12012

First quarter2012

The information contained herein does not constitute an offer of securities in the United States. Offers and sales of securities in The United States may not be made absent made registration under the U.S. Securities Act of 1933, as amended, or an applicable exemption therefrom. This document does not solicit money, securities or any other type of consideration, and if any money, securities or other type of consideration is sent in response hereto, it will not be accepted.

First quarter 2012

Net profit for the first quarter of 2012 stood at €35.5 million, 14.4% down on 1Q11, against ■a backdrop of sharp declines in trading volumes for both equities and derivatives caused by regulatory constraints on trading and a downward correction in listed prices.

EBITDA dipped by 13.4% to reach €52.3 million. -

Operating costs for the year increased by 2.3% to €25.1 million. -

The efficiency ratio for the first quarter is 32.4% compared to 28.9% reported in 1Q11. ■This ratio enabled the group to maintain a lead of more than 12 points over the average for the sector.

Return on Equity (ROE) was 31.2% in 1Q12 and 35.6% in 1Q11, representing a lead of ■more than 13 points over the sector average.

The coverage ratio was 116% at quarter end. This ratio measures the company’s ■diversification into revenue sources not associated with market activity.

Trading volume on the equities and derivatives markets recover gradually from the recent ■lifting of the ban to increase the net short position on financial securities imposed in several different European countries.

Since the ban was lifted, for those securities directly affected by the ban, the average -turnover climbed 58.5%, in shares traded the improvement was 75.8% and the average increase in trades amounted 58.7%.

Transaction costs for investors, measured in terms of the bid-ask spread, have returned -to levels seen before the ban was introduced.

In the derivatives market, the average volume of contracts has improved, based on -the same reasons, by 66.9%.

Share Information

Bolsas y Mercados Españoles - Business performance - Interim Report (January - March 2012) 3

41.5 40.536.7 35.51.2

Mill.€

Profit EvolutionProfit evolution

BME: Profit attributable to The Group(Quarterly series)

Profit evolutionProfit evolution

36.5

35.3

1Q11 2Q11 3Q11 4Q11 1Q12

BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUPCONSOLIDATED PROFIT AND LOSS ACCOUNTS (UNAUDITED)

1Q12 1Q11 ∆

(Th.Eur.) (Th.Eur.) %

Operating Income 77,386 84,910 -8.9%

Ordinary revenue on the provision of services 76,587 84,042 -8.9%

Other operating income 438 500 -12.4%

Capitalisation of development expenses 361 368 -1.9%

Operating Expenses (25,080) (24,522) 2.3%

Staff costs (15,906) (15,062) 5.6%

Operating and external expenses (9,049) (9,319) -2.9%

Taxes and levies (125) (141) -11.3%

Income before interest, taxes, net impairment losses

and depreciation 52,306 60,388 -13.4%

Depreciation and amortization charges (2,059) (1,935) 6.4%

Income before interest and taxes 50,247 58,453 -14.0%

Net financial income 541 706 -23.4%

Share of profit (loss) of associates (148) (154) -3.9%

Income before taxes 50,640 59,005 -14.2%

Corporate income tax (15,127) (17,525) -13.7%

Profit attributable to the Group 35,513 41,480 -14.4%

Net profit of Bolsas y Mercados Españoles (BME) shed 14.4% over the first quarter of 2011 to reach €35.5 million.

Operating costs climbed to €25.1 million at March 31, marking a yoy increase of 2.3%.

Income for the first quarter stood at €77.4 million, down 8.9% on the same figure for 2011.

4 Bolsas y Mercados Españoles - Business performance - Interim Report (January - March 2012)

Financial Statements

35.6%31.4%

36.3%33.1%

31.2%

% R

OE

Consolidated ROE ratio evolution

BME: Return on Equity(Quarterly series)

1Q11 2Q11 3Q11 4Q11 1Q12

28.9%32.7%

29.5%31.6% 32.4%(%

Eff

icie

ncy

)

BME efficiency ratio (Quarterly series)

Consolidated efficiency ratio evolution

1Q11 2Q11 3Q11 4Q11 1Q12

Earnings per share 0.43 0.50 -14.4%

Efficiency ratio (%) 32.4% 28.9%

ROE (%) 31.2% 35.6%

Quarterly results have been conditioned by a lower equity and derivatives volumes context, based on the general economic environment, regulatory limitations on trading, and an average general price correction. Nevertheless, the diversification of the business model coupled to generation of revenues not linked to volume cycles sources, have offset partially the effect of the volume decline in net income.

The efficiency ratio, one of the company’s main financial management indicators, settled at 32.4%, compared to the 28.9% seen in 1Q11. ROE closed the quarter at 31.2%, vs. the 35.6% of 1Q11.

At the end of 1Q12, 116% of BME’s cost base was covered by revenue not linked to trading volumes.

Bolsas y Mercados Españoles Group(Key Ratios)

1Q12 1Q11 ∆



In order to apply the same presentation criteria as other European central counterparties, the Group includes in “Current assets – Non-Group current financial assets” and “Current liabilities – Non-Group current financial liabilities”, by the same amounts, fixed-income securities and options in which it acts as central counterparty, and guarantees and deposits received from the market.

This presentation criteria has no impact on income or equity.

BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUP

as of 31/03/2012

as of31/03/2011

∆

CONSOLIDATED BALANCE SHEETS AT CLOSING DATES (UNAUDITED) (Th.Eur.) (Th.Eur.) %

NON-CURRENT ASSETS 168,451 169,864 -0.8%Goodwill 82,190 82,190 0.0%Other intangible assets 9,432 9,459 -0.3%Property, plant and equipment 48,689 49,220 -1.1%Non-current financial assets 21,845 23,716 -7.9%Deferred taxes 6,295 5,279 19.2% CURRENT ASSETS 37,330,992 34,282,437 8.9%Non-Group current financial assets 36,890,623 33,832,253 9.0%Other current financial assets Trade and other receivables 25,881 27,026 -4.2% Other financial assets 10,107 0 - Cash and cash equivalents 344,800 377,925 -8.8%Tax assets 55,904 41,980 33.2%Other current assets 3,677 3,253 13.0% TOTAL ASSETS 37,499,443 34,452,301 8.8% SHAREHOLDERS´ EQUITY 475,372 488,957 -2.8%Share capital 270,078 270,078 0.0%Reserves 102,085 108,903 -6.3%Previous year profit attributable to the Group 155,115 154,152 0.6%Profit attributable to the Group 35,513 41,480 -14.4%(Treasury shares) (7,661) (7,661) 0.0%(Interim dividend) (83,278) (83,278) 0.0%Other equity instruments 1,147 3,090 -62.9%Valuation reserves 2,373 2,193 8.2% NON-CURRENT LIABILITIES 17,783 14,988 18.6%Provisions 6,986 6,891 1.4%Provisions for employee benefits 4,689 2,862 63.8%Deferred taxes 5,526 4,550 21.5%Other non-current financial liabilities 582 685 -15.0% CURRENT LIABILITIES 37,006,288 33,948,356 9.0%Trade and other payables 17,931 18,406 -2.6%Non-Group current financial liabilities 36,890,623 33,832,212 9.0%Tax liabilities 84,662 84,910 -0.3%Other current liabilities 13,072 12,828 1.9% TOTAL EQUITY AND LIABILITIES 37,499,443 34,452,301 8.8%



BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUP

1Q12 1Q11 ∆

CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) (Th.Eur.) (Th.Eur.) %

Note: For the purpose of clear presentation of changes in working capital, inflows of funds from guarantees and deposits received from the market which are invested in current financial assets “Current assets – Non-Group current financial assets” in their entirety have not been included as a change in working capital. Financial instruments of MEFF as a central counterparty and receivables on settlements of options and futures, have not been included either.

Consolidated profit for the year before taxes 50,640 59,005 -14.2%

Corporate income tax (15,127) (17,525) -13.7%

Amortization and provisions 2,291 2,233 2.6%

Other adjustments to the result 96 (276) -134.8%

Changes in working capital-

- Current financial assets (non Group) 0 42 -100.0%

- Trade and other receivables (4,527) (3,534) 28.1%

- Tax assets (430) (543) -20.8%

- Tax liabilities 7,968 9,339 -14.7%

- Other current assets (2,568) (2,514) 2.1%

- Trade and other payables 468 1,360 -65.6%

- Other current liabilities 12,749 12,502 2.0%

Changes in non current assets and liabilities (154) (134) 14.9%

Net cash flows from operating activities 51,406 59,955 -14.3%

Net cash flows from investing activities (7,942) (1,813) 338.1%

Net increase (decrease) in cash and cash equivalents 43,464 58,142 -25.2%

Cash and cash equivalents at the beginning of period 301,336 319,783 -5.8%

Cash and cash equivalents at the end of period 344,800 377,925 -8.8%



Highlights

Equity

Turnover (Mill. Eur.) 177,198 247,463 -28.4%

Number of trades 11,315,977 13,030,936 -13.2%

Number of shares (Million) 47,662 44,621 6.8%

Market Capitalisation (Mill. Eur.) 970,877 1,117,273 -13.1%

Average amount per trade (Euros) 15,659 18,990 -17.5%

Clearing & Settlement

Operations settled 11,478,674 11,554,541 -0.7%

Turnover settled (billion euros daily avg.) 287.2 330.5 -13.1%

Nominal amount registered (billion euros) 1,727.7 1,614.5 7.0%

Listing

Investment Flows channeled through Exchange (Mill. Euros) 6,882 16,314 -57.8%

AIAF Fixed Income volume admitted (nominal Mill. Euros) 127,395 70,791 80.0%

Derivatives

Futures (number of contracts)

Index Futures 1,518,042 2,475,753 -38.7%

Stock Futures 7,089,230 8,006,039 -11.5%

Options (number of contracts)

Index Options 482,000 487,175 -1.1%

Stock Options 9,445,270 8,368,043 12.9%

Open interest (number of contracts) 13,389,171 12,374,644 8.2%

Fixed Income

Turnover (Mill. Eur.) 786,817 1,867,484 -57.9%

Bolsas y Mercados Españoles(Quaterly Overview)

1Q12 1Q11 ∆

The BME Board of Directors, at a meeting held on 29 ■February 2012, drew up the annual accounts (balance sheet, income statement, statement of changes in net equity, cash flow statement and annual report), the management report (which includes the annual corporate governance report) and the proposed distribution of earnings for both the holding company and its consolidated group, all such documents relating to financial year 2011.

At its next meeting, held on 20 March 2012, the Board called a General Shareholders’ Meeting to be held on 26 April 2012, at second call, at the Palacio de la Bolsa, Plaza de la Lealtad 1, Madrid.

The Board resolutions to be put before the General Shareholders’ Meeting include the proposed payout of a final

dividend of €49,966,935, equivalent to a gross dividend per share of €0.60, and an extra dividend against unrestricted reserves in the amount of €30,979,499.7, equivalent to €0.372 per share (gross).

On 14 March 2012, the company notified the Spanish CNMV of Carlos Stilianopoulos Ridruejo’s departure from the Board, following the sale of the BME stake previously held by his principal company, Bankia, S.A.

In the first quarter of 2012, trading in equities totalled ■€177.2 billion, formalised through 11.3 million trades, down 28.4% year on year in terms of turnover and 13.2% in number of trades, with the market witnessing a swing in the pattern of trading performance over the quarter.


Quarter Overview

During the first half of 1Q12, trading in equities and derivatives was hit hard by the preventive ban on establishing or increasing net short positions on Spanish financial stocks imposed on 11 August 2011, but improved following the lifting of the ban on 15 February 2012.

Since the ban was lifted, order book liquidity, implicit transaction costs and trading volumes have all steadily improved.

The number of shares traded in the quarter reached 47.7 billion, up 6.8% on the same figure in 1Q11, illustrating the effect that the widespread correction in market prices has had on trading volumes. Rising uncertainty as to the resolve of the economic recovery, coupled with growing tensions in the debt markets and the risk premium, have all led to an average price correction of 25-30% on figures for 1Q11, while the IBEX 35® witnessed a return to the 7,000-8,000 point range seen in the first quarter of 2009.

BME has upgraded the Spanish stock exchange’s trading platform (SIBE) successfully, in this way bringing trading in Shares, ETFs, Warrants and other investment products into one single system. The new system multiplies transactional capacity while providing the Spanish stock market with sufficient growth potential to respond to the present and future needs.

The new technological environment, fully developed using BME Group’s technology, allows the system to accommodate the future growth in trading volumes and in the number of transactions. It also shows major improvements in terms of the latency of transactions, which has been reduced by over ten times.

At 31 March 2012, the nominal volume registered for both ■equities and fixed income (both private and public) totalled €1.73 trillion, representing yoy growth of 7.0%.

The drop in settlements of equities was offset by the increased liquidity seen in fixed income transactions, particularly within the corporate bond segment.

In 1Q12, LinkUp Markets established links with the Austrian central securities depository (CSD), Oesterreichische Kontrollbank AG (OeKB), which has now been operating as part of the venture since 24 February, and work is ongoing to set up connections with other entities over the course of the year.

Investment flows in listed shares channelled through the ■exchange reached €6.9 billion in the first quarter of 2012, with highlights including the rights issues of Banco Santander, Banco Popular and Banco Sabadell.

The total volume of new issues admitted to trading on the AIAF fixed income market in 1Q12 was €127.4 billion, marking an 80.0% yoy jump.

Increased activity in issues has driven up the private fixed income outstanding balance, which totalled €906.7 billion at 31 March, up 6.1% on the same figure for 1Q11 and marking the first time the outstanding balance has broken the 900 billion mark.

In derivative trading, average contract volume rallied 66.9% ■across the board following the lifting of the ban on short selling. For specific products, trading in IBEX 35® and Mini futures increased on average by 48.2% and 40.9%, respectively; options on IBEX 35® climbed 117.0%; and futures and options on shares reported a combined relative gain of 67.9% in the number of contracts. All these increases could be seen as important improvements on trading volumes.

Fixed income trading to maturity climbed 51% year on year ■to reach €147.9 billion, driven by trading in preferred shares due to buy-backs, and a major contribution to nearly double the number of trades in 1Q11.


Quarter Overview

Starting of the year saw a correction in the efficiency ratio regarded previous year. Despite contained operating costs witch increased a 2.3% yoy, the effect of lower revenues, mainly in the equity and derivatives business units, resulted in three and a half points of decline in the ratio.

The ratio of operating costs to revenue closed the first quarter at 32.4%, while one year previously the figure was 28.9%.

28.9%32.4%

(% E

ffici

ency

)

2011 2012

Consolidated efficiency ratio evolution

BME efficiency ratio (Cumulative and quarterly series)

1Q11 - 1Q12

(*) Staff includes, for this purpose, only the 50% of the staff of Infobolsa.

BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUP(CHANGE IN SHAREHOLDERS’ EQUITY)

1Q12 1Q11

(Th.Eur.) (Th.Eur.)

Shareholder´s Equity Changes

Staff

Efficiency

Average number of staff 709 701

Employees as at balance sheet date 708 700

Shareholders’ equity – opening balance 438,284 448,429 Valuation reserves 1,210 (392)Equity instruments 365 0 Business combinations 0 (560)Net income/loss in reporting period 35,513 41,480 Shareholders’ equity – closing balance 475,372 488,957

Bolsas y Mercados Españoles(Staff)(*)

1Q12 1Q11


Quarter Overview

BME’s share price closed the quarter at €19.22, down 10.5% on the €21.47 per share reported in the first quarter of 2011. The share outperformed the 24.3% average drop on the IBEX 35® benchmark index. During the quarter, starting on a closing price of €20.80 at the end of 2011, BME’s price obeyed market performance, retreating 7.6% at 31 March and with a downward market correction of 6.5%, to settle at 8,008.00 points on the IBEX 35®. With quarter ended, both, market performance and BME’s price have continued the downward trend in parallel.

Average daily trading volume in BME securities over the first three months stood at €8.9 million, down 47.0% yoy. Total trades and total number of traded shares were similarly down, registering yoy drops of 47.0% and 44.2%, respectively.

BME shares were caught up in the ban on short selling up until 15 February. Average trading volume since the ban was lifted through to 31 March gained 72.2% on the average trading volume during the ban, illustrating that the volume of trading in the shares has rallied considerably since the end of the ban.

50

60

70

80

90

100

20

21

22

l. E

uros

)

ce

volume Closing

BME: Share performanceQuarterly BME's turnover and share performance evolution

0

10

20

30

40

17

18

19

02/0

1

05/0

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10/0

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13/0

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18/0

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26/0

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31/0

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03/0

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16/0

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Tur

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r (M

il

Pric

Share Performance

BME’s share performance

Higher quote 22.00 23.65 -7.0%

Lower quote 19.05 17.53 8.7%

Average quote 20.52 20.94 -2.0%

Closing quote 19.22 21.47 -10.5%

BME’s trading daily turnover (Mill. Euros)

Higher daily turnover 92.0 79.4 15.9%

Lower daily turnover 2.1 3.4 -38.2%

Average daily turnover 8.9 16.8 -47.0%

BME’s shares trading (Mill. Shares) 28.2 50.5 -44.2%

BME’s number of trades 58,558 110,420 -47.0%

Bolsas y Mercados Españoles(Share performance)

1Q12 1Q11 ∆

Share Information


30,415

21,969

(Th.

Eur

os)

2011 2012

Key Investment Highlights Key Financial Business Units overview

EBITDA evolution by Business Unit (1Q12)

15,688

3,9356,447

4,0501,569 1,023

16,068

3,776

7,005

2,538 2,151 1,484

EQUITY CLEARING & SETTLEMENT LISTING MARKET DATA DERIVATIVES FIXED INCOME IT & CONSULTING

Bolsas y Mercados Españoles(Business Units 1Q12) (Thousands of Euros)

EquityClearing & Settlement

ListingMarket Data &

InformationDerivatives

Fixed Income

IT & Consulting

Equity 30,184 38,392 -21.4%

Clearing & Settlement 19,528 18,985 2.9%

Listing 6,091 6,252 -2.6%

Market Data & Information 8,856 7,841 12.9%

Derivatives 5,451 6,829 -20.2%

Fixed Income 2,905 2,298 26.4%

IT & Consulting 4,102 3,690 11.2%

Total 77,117 84,287 -8.5%

Corporate Unit 2,732 2,743 -0.4%

Consolidation adjustments (2,463) (2,120) 16.2%

Consolidated 77,386 84,910 -8.9%

Equity 21,969 30,415 -27.8%

Clearing & Settlement 16,068 15,688 2.4%

Listing 3,776 3,935 -4.0%

Market Data & Information 7,005 6,447 8.7%

Derivatives 2,538 4,050 -37.3%

Fixed Income 2,151 1,569 37.1%

IT & Consulting 1,484 1,023 45.1%

Total 54,991 63,127 -12.9%

Corporate unit (2,685) (2,739) -2.0%

Consolidation adjustments

Consolidated 52,306 60,388 -13.4%

Revenues 30,184 19,528 6,091 8,856 5,451 2,905 4,102

Operating Costs (8,215) (3,460) (2,315) (1,851) (2,913) (754) (2,618)

EBITDA 21,969 16,068 3,776 7,005 2,538 2,151 1,484

Bolsas y Mercados Españoles Revenues

Business Units Revenues (Thousands of Euros) 1Q12 1Q11 ∆

Bolsas y Mercados Españoles EBITDA

Business Units EBITDA (Thousands of Euros) 1Q12 1Q11 ∆


Business Units Quarter Overview

Revenue for the Equity business at quarter-end 2012 amounted to €30,184 thousand, 21.4% down on the figure reported at 2011, while EBITDA fell 27.8% to hit €21,969 thousand.

In the first quarter of 2012, trading in equities totalled €177.2 billion, formalised through 11.3 million trades, down 28.4% year on year in terms of turnover and 13.2% in number of trades, with the market witnessing a swing in the pattern of trading

performance over the quarter.

During the first half of 1Q12, trading in equities and derivatives was hit hard by the preventive ban on establishing or increasing net short positions on Spanish financial stocks imposed on 11 August 2011, but improved following the lifting of the ban on 15 February 2012.

Equity

Revenues 30,184 38,392 -21.4%

Operating Costs (8,215) (7,977) 3.0%

EBITDA 21,969 30,415 -27.8%

99

67

82 82 8374

105

7178

69 70

Turnover, Trades and Shares (Monthly basis)

Equity Business unitActivity Overview

6759

6959

46

61

23.410.5 10.7

18.19.3 10.8

21.710.0 9.7

24.8

8.2 7.9 28.1 6.712.9

4.63.8 4.6

3.5 3.4 3.54.2 4.5 3.7 4.0

3.42.8

3.9

3.4

4.0

1/11 2/11 3/11 4/11 5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1/12 2/12 3/12Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)

247 238 235207

177

13 0

Turnover, trades and Shares traded (Quarterly basis)

Equity Business unitActivity Overview

44.6 38.2 41.3 40.8 47.7

13.0

10.512.4

10.211.3

1Q11 2Q11 3Q11 4Q11 1Q12

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

Bolsas y Mercados Españoles(Equity Business Unit Income) (Th.Eur.)

1Q12 1Q11 ∆



Since the ban was lifted, order book liquidity, implicit transaction costs and trading volumes have all steadily improved. In equity the average turnover climbed 58.5% for those securities directly affected by the ban, in shares traded the improvement was 75.8% and the average increase in trades amounted 58.7%. Transaction costs for investors, measured in terms of the bid-ask spread, have returned to levels seen before the restrictions were implemented.

The number of shares traded in the quarter reached 47.7 billion, up 6.8% on the same figure in 1Q11, illustrating the effect that the widespread correction in market prices has had on trading volumes. Rising uncertainty as to the resolve of the economic recovery, coupled with growing tensions in the debt markets and the risk premium, have all prompted an average price correction of 25-30% on figures for 1Q11, while the IBEX 35® witnessed a return to the 7,000-8,000 point range seen in the first quarter of 2009.

Turnover within the warrants and certificates market dipped 46.8% over the first quarter of 2012 compared to 1Q11 to reach €250 million. Total trades in the quarter also fell by 30.7% yoy.

Exchange-traded funds (ETFs) witnessed a 58.0% fall in turnover in 1Q12 and a 35.0% slump in the number of trades in comparison to the same period of 2011.

BME has upgraded the Spanish stock exchange’s trading platform (SIBE) successfully, in this way bringing trading in Shares, ETFs, Warrants and other investment products into one single system. The new system multiplies transactional capacity while providing the Spanish stock market with sufficient growth potential to respond to the present and future needs.

The new technological environment, fully developed using BME Group’s technology, allows the system to accommodate the future growth in trading volumes and in the number of transactions. It also shows major improvements in terms of the latency of transactions, which has been reduced by over ten times.

TRADING (Mill. Euros) 177,198 247,463 -28.4%

Equity

Turnover (Mill. Euros) 176,494 245,911 -28.2%

Number of trades 11,246,903 12,930,374 -13.0%

Average amount per trade (Euros) 15,693 19,018 -17.5%

Exchange Traded Funds (ETFs)

Turnover (Mill. Euros) 454 1,082 -58.0%

Number of trades 9,055 13,937 -35.0%

Warrants

Turnover (Mill. Euros) 250 470 -46.8%

Number of Trades 60,019 86,625 -30.7%

Number of shares (Mill. Shares) 47,662 44,621 6.8%

CAPITALISATION (Mill. Euros) 970,877 1,117,273 -13.1%

Bolsas y Mercados Españoles(Equity Business Unit Activity Overview)

1Q12 1Q11 ∆



The Clearing and Settlement unit reported EBITDA of €16,068 thousand for the first quarter of 2012, marking an increase of 2.4% yoy. Revenues from the unit’s different activities climbed 2.9% to reach €19,528 thousand.

At 31 March 2012, the nominal amount registered for both equities and fixed income (both private and public) totalled €1.73 trillion, representing yoy growth of 7.0%.

Comparing this figure with the same period of 2011, the number of settled transactions for 1Q12 fell 0.7%, settling 11,478,674. The drop in settlements of equities was offset by an increase in fixed income transactions, particularly within the corporate fixed income market.

The average turnover settled daily declined 13.1% to reach €287.2 billion.

In 1Q12, LinkUp Markets established links with the Austrian central securities depository (CSD), Oesterreichische Kontrollbank AG (OeKB), which has now been operating as part of the venture since 24 February, and work is ongoing to set up connections with other entities over the course of the year.

The REGIS-TR® platform has launched a registry service for commodities and work is currently under way to link the platform and to receive confirmation messages of SWIFT transactions. Both projects are to be developed in tandem with final delivery of the platform covering all products.

11,554,541

10,352,266

11,817,758 11,872,322 11,478,674

Ope

ratio

ns s

ettle

d

Number of transactions settled (Quarterly basis)

C&S Business unit Activity Overview

1Q11 2Q11 3Q11 4Q11 1Q12

Clearing & Settlement

Revenues 19,528 18,985 2.9%

Operating Costs (3,460) (3,297) 4.9%

EBITDA 16,068 15,688 2.4%

Bolsas y Mercados Españoles(Clearing & Settlement Business Unit Income) (Th.Eur.)

1Q12 1Q11 ∆

Bolsas y Mercados Españoles(Clearing & Settlement Business Unit Activity Overview )

1Q12 1Q11 ∆

Operations settled 11,478,674 11,554,541 -0.7%

Turnover settled (billion euros daily avg.) 287.2 330.5 -13.1%

Nominal amount registered (billion euros) 1,727.7 1,614.5 7.0%



Revenue for the Listing unit over the first quarter of 2012 fell 2.6% to reach €6,091 thousand. EBITDA stood at €3,776 thousand, down 4.0% on the same figure for 1Q11.

The market capitalisation of companies listed on the equity markets managed by BME at 31 March 2012 stood at €970.9 billion, down 13.1% yoy.

Investment flows in listed shares channelled through the exchange reached €6.9 billion in the first quarter of 2012, with highlights including the rights issues of Banco Santander, Banco Popular and Banco Sabadell.

The companies Suávitas, Carbures and Bionaturis have been admitted to the growth segment of the alternative exchange MAB Empresas en Expansión. These three recent arrivals bring the total number of companies admitted to this segment to 21.

There were 3,064 SICAVs admitted to trading on the Alternative Equity Market (MAB) at 31 March 2012, 1.9% fewer than the recent figure for 1Q11.

The number of warrants listed for trading during the first quarter surged 10.9% yoy to 1,716.

The total volume of new issues admitted to trading on the AIAF fixed income market in 1Q12 was €127.4 billion, marking an 80.0% yoy increase.

Business in short-term debt issues (commercial paper) more than doubled with an increase of 106% in comparison to the same figure for 1Q11, meanwhile mid- and long-term issues accounted for €75.5 billion, marking a yoy increase of 65%. A large part of this increase is due to issues guaranteed by the Spanish state, which has renewed its scheme. If we strip out these issues, growth exceeds 7%.

The improvement in issues has brought about an increase in the private fixed income outstanding balance, which totalled €906.7 billion at 31 March, up 6.1% on the same figure for 1Q11 and marking the first time the outstanding balance has broken the 900 billion mark. For the reasons discussed above, highlights for the quarter include the sharp increase in the outstanding balance of commercial paper, which surged 156%, while the outstanding balance of preferred stock lost 40% as a product of buy-backs from individual investors and swaps with customers. In similar fashion, mortgage- and asset-backed bonds shed more than €24 billion, while the balance of covered bonds (cédulas) increased by €45.5 billion.

Listing

Revenues 6,091 6,252 -2.6%

Operating Costs (2,315) (2,317) -0.1%

EBITDA 3,776 3,935 -4.0%

Equity Market

Number of Companies listed 3,325 3,383 -1.7%

Market Capitalisation listed (Mill.Euros) 970,877 1,117,273 -13.1%

New shares nominal listed (Mill. Euros) 659 983 -33.0%

Investment Flows channeled through Exchange (Mill. Euros)

New listed companies 21 8,432 -99.8%

Already listed companies 6,861 7,882 -13.0%

Fixed Income Market

AIAF Fixed Income volume admitted (nominal Mill. Euros) 127,395 70,791 80.0%

Public Debt Outstanding Balance (Mill. Euros) 676,193 610,122 10.8%

Private Fixed Income Outstanding Balance (Mill. Euros) 906,701 854,967 6.1%

Bolsas y Mercados Españoles(Listing Business Unit Income) (Th.Eur.)

1Q12 1Q11 ∆

Bolsas y Mercados Españoles(Listing Business Unit Activity Overview)

1Q12 1Q11 ∆



During the first three months of 2012, the Information unit posted revenue of €8,856 thousand (+12.9%). EBITDA stood at €7,005 thousand, up 8.7% yoy.

The Information unit fared well up to 31 March 2012, not only in the number of subscribers to primary-source reporting channels, but also in direct connections to and customers of BME information servers. In comparison to the situation 1Q11, the total number of end users climbed 6.1%, while customers and direct connections experienced 6.8% and 2.4% growth, respectively.

New subscribers are steadily signing up for the recently launched “Reference Data” and “End of Day” services.

Business within the unit focused on adding new content to the “Real Time” products following the integration of new instruments on the BME markets; on ensuring the information flows received via the BME Data Feed platform are suitable for the impending migration of the Equities trading platform to SMART architecture; and on adding information on derivatives, the aim being to simplify content management for recipients of information, while also lowering their maintenance costs, thus enhancing the service provided.

Market Data & Information

Revenues 8,856 7,841 12.9%

Operating Costs (1,851) (1,394) 32.8%

EBITDA 7,005 6,447 8.7%

Bolsas y Mercados Españoles(Information Business Unit Income) (Th.Eur.)

1Q12 1Q11 ∆



Total contracts traded within the derivatives business over the first quarter of 2012 came in 4.2% lower than for 1Q11, with mixed performances from the different product segments.

Trading in the various contracts pegged to the IBEX 35® was down on the same period of 2011. Notional trading value in this segment slipped 44.6%.

Derivatives on individual stocks put on a better showing. Futures on stock saw a slight drop, but maintained high levels of trading. Equity options gained 12.9% to reach 9.4 million

contracts. March marked an all-time high in trading of equity options, with a grand total of 4,501,655 contracts, besting the previous high seen back in March 2001.

The combined notional volume of derivatives on individual stock dropped 16.8% on account of the widespread decline in share prices.

In accordance with reported trading volumes, the Derivatives business unit posted revenue of €5,451 thousand for the first quarter, 20.2% down on the same figure for 2011, while EBITDA

1,575

1,2811,473

um

be

r o

f co

ntr

act

s (T

h.)

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

Derivatives Business unit Activity Overview

Index derivatives contracts traded

952 1,022900

723

936

540 495487 502598 611

482

1Q11 2Q11 3Q11 4Q11 1Q12

Nu

Derivatives

Revenues 5,451 6,829 -20.2%

Operating Costs (2,913) (2,779) 4.8%

EBITDA 2,538 4,050 -37.3%

8,006 8,437

7,088

8,3689,094 9,445

um

be

r of

con

tract

s (T

h.)

Stock Futures Stock Options

Derivatives Business unit Activity Overview

Stock derivatives contracts traded

5,2305,9056,164 5,784

1Q11 2Q11 3Q11 4Q11 1Q12

Nu

Bolsas y Mercados Españoles(Derivatives Business Unit Income) (Th.Eur.)

1Q12 1Q11 ∆



Bolsas y Mercados Españoles(Derivatives Business Unit Activity Overview)

1Q12 1Q11 ∆

Derivatives Contracts (number of contracts) 18,534,542 19,338,165 -4.2%

Index Derivatives (number of contracts)

IBEX 35® Index Futures 1,022,021 1,575,272 -35.1%

Mini IBEX 35® Index Futures 495,466 900,481 -45.0%

IBEX 35® Div Impact Futures 555 1,155 -51.9%

IBEX 35® Index Options 482,000 487,175 -1.1%

Total notional value (Mill.Euros) 94,716 171,041 -44.6%

Equity Derivatives (number of contracts)

Equity Futures 7,087,730 8,006,039 -11.5%

Equity dividend Futures 1,500 0

Equity Options 9,445,270 8,368,043 12.9%

Total notional value (Mill.Euros) 15,366 18,471 -16.8%

Open Interest (number of contracts) 13,389,171 12,374,644 8.2%

Number of Trades 832,110 1,455,553 -42.8%

amounted to €2,538 thousand, and 37.3% down year on year.

The open interest comprised 13.4 million contracts at 31 March, 8.2% up yoy.

On 15 February 2012, the Spanish securities market regulator (Comisión Nacional del Mercado de Valores, or CNMV) lifted its ban on the short selling of financial securities. The lifting led to an immediate and welcome improvement in trading volumes over the second half of the quarter, partially offsetting

the negative effects of the ban seen during the first half of the quarter. The average volume of contracts has rallied by 66.9% since the lifting of the short selling ban, while for specific products, trading in IBEX 35® and Mini futures has increased on average by 48.2% and 40.9%, respectively; options on the IBEX 35® have climbed 117.0%; and futures and options on shares have reported a combined relative gain of 67.9% in the number of contracts. All these increases could be seen as important improvements on trading volumes.



This business unit includes only cash fixed income trading.

Over the first quarter of 2012, total trading in private fixed income securities stood at €753.5 billion, marking a yoy drop of 58.8%.

This sharp decline was due to repo and reverse repo activity as financial institutions look to raise capital. The European Central Bank’s recent policy of pumping liquidity into the markets has made fixed-income transactions backed with collateral reduce significantly, and this has impacted levels of trading.

Repos and reverse repo business during the first three months of 2012 stood at €605.6 billion, 65% down on figures for 1Q11. Trading to maturity, on the other hand, climbed 51% year on year to reach €147.9 billion.

It is worth noting the increased trading in preferred stock due

to buy-backs by issuers. Although not particularly significant in terms of trading volume, produced a large number of transactions, which helped to almost double the number of trades reported in 1Q11.

Revenue from trading of fixed income products up in 1Q12 amounted to €2,905 thousand, representing a 26.4% increase on the same period of 2011. EBITDA climbed to €2,151 thousand, up 37.1% yoy.

Trading in public debt on electronic platforms came in at €19.3 billion, down 29.5% on the first quarter of 2011, while trading in other equity market fixed income totalled €14.0 billion, up 9.7% yoy

27,35712,771

17,747 14 564 20,983

Other Equity Market Fixed Income Public Debt Private Fixed Income

Fixed IncomeActivity

Fixed Income Turnover

1,827,356

1,202,249 1,189,640 1,225,857

753,517

28,163 16,720 12,764

19,296

17,747 14,564 ,

14,004

1Q11 2Q11 3Q11 4Q11 1Q12

(Mill

. Eu

ros)

Fixed Income

Revenues 2,905 2,298 26.4%

Operating Costs (754) (729) 3.4%

EBITDA 2,151 1,569 37.1%

Bolsas y Mercados Españoles(Fixed Income Business Unit Income) (Th.Eur.)

1Q12 1Q11 ∆

Bolsas y Mercados Españoles(Fixed Income Business Unit Activity Overview)

1Q12 1Q11 ∆

Public Debt Turnover (Mill. Euros) 19,296 27,357 -29.5%

Private Fixed Income Turnover (Mill. Euros) 753,517 1,827,356 -58.8%

Other Equity Market Fixed Income Turnover (Mill. Euros) 14,004 12,771 9.7%

Fixed Income Total Turnover (Mill. Euros) 786,817 1,867,484 -57.9%



The IT and Consulting unit is continuing to develop projects related to different areas and activities.

Starting with post-trade services, the company reported healthy subscription rates for the Proximity services offered via Visual Trader, which grew 61.5% yoy in the number of entities signed up for the service. The smart order routing service turned in a solid performance in terms of the number of terminals connected (+15.9%), while cash volumes and the number of orders routed through the VT network slumped 12.9% and 14.2%, respectively, hit by the ban on short selling and corrections in market prices.

The progress made by the unit over the quarter was largely on the back of business continuity, financial communication (BME HighWay) and compliance related services.

Focusing on continuity services, the number of clients climbed 5% yoy, while the range of services was also diversified by extending continuity and contingency services to embrace hosting services.

In the field of financial communication, the customer base leapt 78% owing to the increased service coverage by entity type and region.

Turning to compliance, transaction reporting and market abuse fared well in terms of customer numbers and transactions.

The various activities handled by the unit generated combined revenue of €4,102 thousand for the quarter, up 11.2% on the same figure for 1Q11, while EBITDA for the unit climbed to €1,484 thousand, marking a 45.1% increase on 2011.

IT & Consulting

Revenues 4,102 3,690 11.2%

Operating Costs (2,618) (2,667) -1.8%

EBITDA 1,484 1,023 45.1%

Bolsas y Mercados Españoles(IT & Consulting Business Unit Income) (Th.Eur.)

1Q12 1Q11 ∆



bme financial results, q12012

Business

operating income

net income

net financial income

mercados yas

financial securities

operating costs

coverage ratio

quarter end