bme financial results q4 and fy2012

- 1 -

February 2013

Business Evolution January – December 2012

Business Performance

Fourth quarter and

FY/2012

- 2 -

February 2013


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- 3 -

February 2013


Index

A. Results

B. Business Overview

C. Financials

D. Business Drivers

- 4 -

February 2013


Index

A. Results


C. Financials

D. Business Drivers

- 5 -

February 2013


150.0 154.2 155.1

135.5

2009 2010 2011 2012

Results Net Profit

Result decreases by 12.7% compared to 12M11

(€ Million)

- 12.7%

136.4 149.0 153.9

133.3

- 6 -

February 2013


36.7 35.538.5

31.0 30.4

4Q11 1Q12 2Q12 3Q12 4Q12

Results Net Profit

The quarterly result decreases by 17.2% compared to

4Q11 (2.1% compared to 3Q12)

(€ Million) - 2.1%

- 17.2%

- 7 -

February 2013


Business model: Results

Integration

Diversification

In-house technology

Free cash-flow generation

Low maintenance capex

High margin+Leverage

Low marginal cost new products/projects

Efficiency

Critical mass

=

=

- 8 -

February 2013


Solid operating leverage

Costs Revenues Revenues not linked to volumes Ratio

78%

90%

106% 109% 105% 103% 112%

118%

2005 2006 2007 2008 2009 2010 2011 FY12

- 9 -

February 2013


Key ratios vs. benchmarking

• Efficiency • ROE

- BME s data as of 31/12/2012

- Average peer Group figures are calculated using last results published and not taking account

of goodwill impairment charges

32.0%

13.7%

BME Average Peer

Group

33.4%

47.0%

BME Average Peer

Group

- 10 -

February 2013


Dividends: Maximizing shareholders returns

Sustainability of Pay-Out:

Proposed supplementary dividend: €0.6 per share

0.956 0.986

0.40 0.40 0.40 0.40

0.60 0.60 0.60 0.60

1.016 0.986

0.60 0.60 0.60 0.60

0.372 0.372 0.372

2007 2008 2009 2010 2011 2012

First Interim Dividend Second Interim Dividend Suplementary Dividend Extraordinary Dividend

1.972 1.972Total Dividends /Share

Pay Out 82% 86%

1.9721.9721.972

Pay Out 89% 86% 86%

- 11 -

February 2013


Index

A. Results


C. Financials

D. Business Drivers

- 12 -

February 2013


Business Areas

Consolidated Revenues

FY 2012 - %

EBITDA

FY 2012 - %

Renta Variable 37.0%

Liquidación 26.9%

Listing 7.1%

Información 11.7%

Derivados 8.7%

Renta Fija 3.1%

IT & Consulting

5.6%

Renta Variable 37.1%

Liquidación 31.5%

Listing 5.6%

Información 13.1%

Derivados 6.9%

Renta Fija 2.9%

IT & Consulting

2.9%

- 13 -

February 2013


207

177

199

154170

40.8 47.758.5

45.1 47.0

10.211.3

13.5

8.8

7.1

4Q11 1Q12 2Q12 3Q12 4Q12M

iles d

e m

illo

ne

s

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

Equity Market

Equity (Turnover, volume and shares traded)

2012 a year with seven months of restrictions on short sales

78

69

59

70

46

6166

70

63

71

34

49

70

42

57

24.8

8.2 7.9

28.1

6.7

12.9

25.7

15.117.6

29.7

6.49.0

28.2

7.611.2

4.0

3.4

2.8

3.9

3.4

4.0

4.6 4.8

4.1 4.0

2.3

2.52.7

2.3 2.1

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

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

Thousands of € 4Q 2012 4Q 2011 % FY 2012 FY 2011 %

Revenues 22,524 29,306 -23.1% 108,595 133,305 -18.5%

Expenses (8,125) (8,510) -4.5% (32,071) (32,384) -1.0%

EBITDA 14,399 20,796 -30.8% 76,524 100,921 -24.2%

- 14 -

February 2013


Equity Market • Market Trends

1,324,231

1,069,021

2,227,453

699,768

10,235,713

7,906,786

659,202

2,446,301

1,300,709

Equity

Turnover (€ Million) 2012

1,688,607

1,406,563

2,694,895

927,308

13,714,310

10,283,220

597,778

2,786,953

1,586,647

2011

-21.6%

-24.0%

-17.3%

-24.5%

-25.4%

-23.1%

10.3%

-12.2%

-18.0%

Var (%) 2012 2011 Var (%)

Source:Company data and World Federation of Exchanges Statistics

Derivatives

Contracts (Million)

2,890.0

1,134.2

991.9

1,001.0

631.8

846.8

1,660.2

955.8

67.2

3,387.0

1,216.9

1,131.1

1,175.0

778.1

772.1

2,044.0

1,148.5

67.6

-14.7%

-6.8%

-12.3%

-14.8%

-18.8%

9.7%

-18,8%

-16.8%

-0.6%

- 15 -

February 2013


11.9 11.5

14.0

10.7 10.6

4Q11 1Q12 2Q12 3Q12 4Q12

Clearing and Settlement

Settlement: Number of trades settled

(Million of trades)

Securities under custody: Nominal value

(Billion €)

The fall in volumes settled was offset by other activities of the business unit

1,6641,728 1,724 1,692 1,706

4Q11 1Q12 2Q12 3Q12 4Q12


Revenues 18,542 20,358 -8.9% 78,975 78,856 0.2%

Expenses (3,111) (3,926) -20.8% (14,033) (14,314) -2.0%

EBITDA 15,431 16,432 -6.1% 64,942 64,542 0.6%

- 16 -

February 2013


108 108 105100 97

4.04.03.1

3.6 3.5

4Q11 1Q12 2Q12 3Q12 4Q12

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)

Positive trend in customers with a direct connection partially offset the reduction

in the number of terminals


Revenues 8,211 9,062 -9.4% 34,278 33,386 2.7%

Expenses (1,870) (1,980) -5.6% (7,354) (7,090) 3.7%

EBITDA 6,341 7,082 -10.5% 26,924 26,296 2.4%

- 17 -

February 2013


4Q11 1Q12 2Q12 3Q12 4Q12

127.4

69.9

85.1 81.6

103.0

Listing

AIAF: New listings (Billion €)

Commercial

paper

Corporate

bonds

MBS ABS Preferred

securities

• 2012 posted a historic high in

capital increases not regarded to

concentration operations with

€28.7 billion of new flows to

Exchange (+75.0%)

• Private Fixed Income admissions

improvement confirmaition. New

listings in AIAF reached €364.0

billion in 2012 (+30.7%)


Revenues 4,831 5,934 -18.6% 20,997 24,281 -13.5%

Expenses (2,505) (2,435) 2.9% (9,381) (9,377) 0.0%

EBITDA 2,326 3,499 -33.5% 11,616 14,904 -22.1%

- 18 -

February 2013


2,1064,041

8,8655,657

9,920 5,970

4,626

6,384

5,334 9,760

18,014

2009 2010 2011 2012

12,041

17,36019,771

31,505

+ 59.3% • In 2012 markets have become

the source of financing for

companies in a time of difficult

banking credit conditions with

€31.5 billion in capital increases

(+59.3%)

• €8.9 billion market cap raised

through scrip dividends (+119.4%

yoy)

• Transformation of Fixed income in

equity amounted €14.3 billion in

2012 through the conversion in

shares of bonds and

participations

Source: BME s 2012 Fact Book

Listing

Scrip dividends Capital increases through suscription rights Other capital increases

• Companies find in the market the path for deleverage and capital adjustment

Market capital increases 2009 - 2012 (Million €)

- 19 -

February 2013


5,9054,378

27,579

21,221

9,0947,796

29,410

34,507

4Q11 4Q12 FY11 FY12

Stock Futures Stock Options

952 856

5,281

4,745

540348

3,100

2,425

611

1,433

2,199

4,206

4Q11 4Q12 FY11 FY12

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

Derivatives

Stock derivatives contracts traded Index derivatives contracts traded

Revenue growth of collateral management services

(Thousand of contracts) (Thousand of contracts)


Revenues 6,367 5,394 18.0% 25,507 23,601 8.1%

Expenses (2,607) (2,768) -5.8% (11,261) (11,216) 0.4%

EBITDA 3,760 2,626 43.2% 14,246 12,385 15.0%

- 20 -

February 2013


Derivatives • MEFF POWER: Development of registered volumes

• Number of participating entities increased 156%, volumes 228% and open interest 129%

• Market share in respect of OTC market has doubled

Balance 2012

0

100000

200000

300000

400000

500000

600000

700000

Day W/E Week

MWh Volume registered at CCP - short term products

2011

2012

0

0,5

1

1,5

2

2,5

3

3,5

4

Month Quarter Calendar

TWh Volume registered at CCP - long term products

2011

2012

- 21 -

February 2013


1,124

606

379 496

666

101

148

120

75

76

137,218

379,483

315,511

234,387

419,409

4Q11 1Q12 2Q12 3Q12 4Q12

753 742

499

571

1,226

4Q11 1Q12 2Q12 3Q12 4Q12

753 742

499571

1,226

Fixed income

MBS&

ABS

Commercial

paper

Corporate

bonds

Preferred

securities

Growth in turnover and number of trades

Repo Cash Trades

AIAF – Turnover (Billion €)


Revenues 1,916 1,697 12.9% 9,057 8,030 12.8%

Expenses (733) (710) 3.2% (3,013) (2,935) 2.7%

EBITDA 1,183 987 19.9% 6,044 5,095 18.6%

- 22 -

February 2013


0

2,000

4,000

6,000

8,000

10,000

12,000

0

50

100

150

200

250

E F M A M J J A S O N D E F M A M J J A S O N D

2011 2012

Trades

Turnover

Turnover (€ Mill.) Number of trades

Source: AIAF

• SEND: Trading progress in the Fixed Income platform for retail

Fixed income

- 23 -

February 2013


IT & Consulting

Technology Infraestructure

Regulatory Compliance

Consultancy services

BME InCloud commercial focus

Compliance services (Confidence Net) for local communities and financial entities

Algerian public debt market modernisation


Revenues 4,203 4,724 -11.0% 16,333 16,712 -2.3%

Expenses (2,547) (2,642) -3.6% (10,370) (10,512) -1.4%

EBITDA 1,656 2,082 -20.5% 5,963 6,200 -3.8%

- 24 -

February 2013


Breakdown by business areas

€ Thousand FY 2012 FY 2011 % FY 2012 FY 2011 %

Equity Market 108,595 133,305 -18.5% 76,524 100,921 -24.2%

Clearing & Settlement 78,975 78,856 0.2% 64,942 64,542 0.6%

Listing 20,997 24,281 -13.5% 11,616 14,904 -22.1%

Market Data & Information 34,278 33,386 2.7% 26,924 26,296 2.4%

Derivatives 25,507 23,601 8.1% 14,246 12,385 15.0%

IT & Consulting 16,333 16,712 -2.3% 5,963 6,200 -3.8%

Fixed income 9,057 8,030 12.8% 6,044 5,095 18.6%

REVENUES EBITDA

- 25 -

February 2013


Index

A. Results


C. Financials

D. Business Drivers

- 26 -

February 2013


Balance sheet

as of December, 31th

(Thousands of €) 2012 2011

Goodwill 82,190 82,190

Other non-current assets 93,672 78,214

Cash and cash equivalents 185,927 301,336

Non-Group current financial assets 36,059,479 30,730,762

Other current assets 160,793 87,981

Total assets 36,582,061 31,280,483

Owners’ Equity 412,631 438,284

External Partners 200 0

Non-current liabilities 20,563 16,957

Current liabilities 36,148,667 30,825,242

Total equity and liabilities 36,582,061 31,280,483

- 27 -

February 2013


P/L

Thousands of € 4Q 2012 4Q 2011 % 2012 2011 %

Revenues 67,026 76,889 -12.8% 296,171 321,395 -7.8%

Expenses (23,730) (24,322) -2.4% (98,908) (98,337) 0.6%

EBITDA 43,296 52,567 -17.6% 197,263 223,058 -11.6%

EBIT 41,508 49,972 -16.9% 189,403 214,685 -11.8%

Financial results 789 1,444 -45.4% 2,862 4,774 -40.1%

EBT 42,157 51,275 -17.8% 191,672 219,087 -12.5%

Net Profit 30,389 36,688 -17.2% 135,473 155,115 -12.7%

- 28 -

February 2013


EBITDA FY 2012/2011 [€ Mill.] Net Profit FY 2012/2011 [€ Mill.]

Comparison with FY 2011

Revenues FY 2012/2011 Costs FY 2012/2011

Margins

[€ Mill.] [€ Mill.]

-7.8% + 0.6%

- 11.6% - 12.7%

296.2 321.4

FY 2012 FY 2011

98.9 98.3

FY 2012 FY 2011

197.3 223.1

FY 2012 FY 2011

135.5 155.1

FY 2012 FY 2011

- 29 -

February 2013


35.4% 31.6% 33.4% 30.6%

4Q12 4Q11 FY12 FY11

57.2%48.7%

52.2%45.8%

4Q12 4Q11 FY12 FY11

61.9% 65.0% 64.0% 66.8%

4Q12 4Q11 FY12 FY11

Efficiency & Profitability ROE Evolution EBIT/Revenues Ratio Evolution

% ROE % EBIT/Revenues

% Cost/EBIT % Efficiency

Efficiency Ratio Evolution Cost/EBIT Ratio Evolution

29.0%33.1% 32.0% 35.1%

4Q12 4Q11 FY12 FY11

- 30 -

February 2013


Index

A. Results


C. Financials

D. Business Drivers

- 31 -

February 2013


Business drivers: Highly liquid market

Company RK

FY12 Daily avg. FY12 Relative weight at

EuroStoxx50 (%)1) Turnover (Billion €) Turnover (Billion €)

Source: Bloomberg 1) As of 31/12/2012

• Spanish blue-chips are the most liquid stocks in the EMU

154.0

111.8

107.1

97.9

93.9

86.1

83.7

83.6

83.3

77.6

66.6

58.3

47.9

0.60

0.44

0.42

0.39

0.37

0.34

0.33

0.33

0.33

0.31

0.26

0.23

0.19

4.005%

2.580%

2.413%

1.274%

4.354%

1.954%

5.511%

2.865%

3.123%

4.165%

0.760%

1.417%

1.233%

1

2

3

4

5

6

7

8

9

10

15

19

26

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- 32 -

February 2013


• Distribution by markets of business volume of the IBEX 35® companies (2008 – 1H12)

Business drivers: Diversified market

Spain EU. OCDE Rest

18%

16%

26%

- 33 -

February 2013


• Regulation: Driver for Business performance. Wind for Transparency and risk

control represents business oportunities for Regulated Markets

Regulatory map

MiFIr EMIR/ESMA

Regis-TR Meff Power CCP Equity Collateral Mgmnt.

Short selling Ban Transaction Tax T2S

Projects in process to cope with regulatory changing times

Business drivers: Regulatory drivers

- 34 -

February 2013


Key ratios vs. benchmarking

• Efficiency • ROE

- BME s data as of 31/12/2012

- Average peer Group figures are calculated using last results published and not taking account

of goodwill impairment charges

32.0%

13.7%

BME Average Peer

Group

33.4%

47.0%

BME Average Peer

Group

- 35 -

February 2013


Solid operating leverage

Costs Revenues Revenues not linked to volumes Ratio

78%

90%

106% 109% 105% 103%

112% 118%

2005 2006 2007 2008 2009 2010 2011 FY12

- 36 -

February 2013


Q&A

bme financial results q4 and fy2012

Documents

3q12 business evolution

share business evolution

12m11 business evolution

business overviewc

business model

business performance

short sales business

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