Download - BME Financial Results 1H2012
- 1 -
July 2012
Business Evolution January – June 2012
Business Performance
First Half 2012
- 2 -
July 2012
Business Evolution January – June 2012
Disclaimer
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July 2012
Business Evolution January – June 2012
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 4 -
July 2012
Business Evolution January – June 2012
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
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July 2012
Business Evolution January – June 2012
Results Net Profit
The quarterly result increases by 5.7% compared to 2Q11
(8.5% compared to 1Q12)
(€ Million)
+ 5.7%
36.540.5
36.7 35.538.5
2Q11 3Q11 4Q11 1Q12 2Q12
+ 8.5%
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July 2012
Business Evolution January – June 2012
Profit and Loss Account 1H12
Thousands of € 2Q 2012 2Q 2011 % 1H 2012 1H 2011 %
Revenues 81,200 76,832 5.7% 158,586 161,742 -2.0%
Expenses (25,757) (25,105) 2.6% (50,837) (49,627) 2.4%
EBITDA 55,443 51,727 7.2% 107,749 112,115 -3.9%
EBIT 53,441 49,820 7.3% 103,688 108,273 -4.2%
Financial results 1,051 1,452 -27.6% 1,592 2,158 -26.2%
EBT 54,321 51,334 5.8% 104,961 110,339 -4.9%
Net Profit 38,532 36,466 5.7% 74,045 77,946 -5.0%
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July 2012
Business Evolution January – June 2012
Dividends: Maximizing shareholders returns
Pay-out Dividend proposal: maintenance of dividend/share
Proposed interim dividend: 0.4 € / share - September 7th
0.956 0.986
0.40 0.40 0.40 0.40
0.60 0.60 0.60
1.016 0.986
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%
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July 2012
Business Evolution January – June 2012
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
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July 2012
Business Evolution January – June 2012
Business Areas
Consolidated Revenues
1H 2012 - %
EBITDA
1H 2012 - %
Equity 38.3%
Clearing & Settlement
26.4%
Listing 7.3%
Information 11.2%
Derivatives 8.0%
Fixed Income
3.4%
IT & Consulting
5.3%
Equity 39.1%
Clearing & Settlement
30.4%
Listing 6.1%
Information 12.3%
Derivatives 6.0%
Fixed Income 3.4%
IT & Consulting
2.7%
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July 2012
Business Evolution January – June 2012
238 235
207
177
199
38.2 41.3 40.8 47.758.5
10.512.4
10.2 11.3
13.5
2Q11 3Q11 4Q11 1Q12 2Q12M
ile
s d
e m
illo
ne
s
Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)
Equity Market
Equity (Turnover, volume and shares traded)
Strong increase in transactional activity (trades and titles) that moderates the effect of
the fall of turnover
82 83
74
105
71
59
78
69
59
70
46
6166
7063
18.1
9.3 10.821.7 10.0 9.7
24.8
8.2 7.9
28.1
6.712.9
25.715.1 17.6
3.5 3.4 3.54.2 4.5
3.7 4.03.4
2.8
3.93.4
4.04.6
4.84.1
4/11 5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1/12 2/12 3/12 4/12 5/12 6/12
Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)
Thousands of € 2Q 2012 2Q 2011 % 1H 2012 1H 2011 %
Revenues 29,909 30,514 -2.0% 60,093 68,906 -12.8%
Expenses (7,985) (8,134) -1.8% (16,200) (16,111) 0.6%
EBITDA 21,924 22,380 -2.0% 43,893 52,795 -16.9%
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July 2012
Business Evolution January – June 2012
1,615 1,612 1,6641,728 1,724
2Q11 3Q11 4Q11 1Q12 2Q12
10.4
11.8 11.9 11.5
14.0
2Q11 3Q11 4Q11 1Q12 2Q12
Clearing and Settlement
Settlement: Number of trades settled
(Million of trades)
Securities under custody: Nominal value
(Billion €)
Good performance of the activities of Registration and Services to Issuers
Thousands of € 2Q 2012 2Q 2011 % 1H 2012 1H 2011 %
Revenues 21,854 18,813 16.2% 41,382 37,798 9.5%
Expenses (3,751) (3,622) 3.6% (7,211) (6,919) 4.2%
EBITDA 18,103 15,191 19.2% 34,171 30,879 10.7%
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July 2012
Business Evolution January – June 2012
100 102108 108 105
4.43.9
3.13.6 3.5
2Q11 3Q11 4Q11 1Q12 2Q12
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)
New products and increase of clients
Thousands of € 2Q 2012 2Q 2011 % 1H 2012 1H 2011 %
Revenues 8,701 8,346 4.3% 17,557 16,187 8.5%
Expenses (1,846) (1,840) 0.3% (3,697) (3,234) 14.3%
EBITDA 6,855 6,506 5.4% 13,860 12,953 7.0%
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July 2012
Business Evolution January – June 2012
2Q11 3Q11 4Q11 1Q12 2Q12
127.4
68.3
85.1
36.5
103.0
Listing
AIAF: New listings (Billion €)
Commercial
paper
Corporate
bonds
MBS ABS Preferred
securities
Increasing contribution of capital increases
• Companies raise funds through
capital and scrip dividends.
Investment flows channeled through
the Exchange in listed companies
reached 11,986 million in the first 6
months, a 125.3% increase in
quarter and 18.0% in the semester.
• Private fixed income rose 24.7% in
the quarter and 52.8% in the
semester (212,540 million)
Thousands of € 2Q 2012 2Q 2011 % 1H 2012 1H 2011 %
Revenues 5,375 5,328 0.9% 11,466 11,580 -1.0%
Expenses (2,314) (2,318) -0.2% (4,629) (4,635) -0.1%
EBITDA 3,061 3,010 1.7% 6,837 6,945 -1.6%
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July 2012
Business Evolution January – June 2012
1,281
1,683
2,8562,705
723954
1,6231,450
502
1,058 989
1,540
2Q11 2Q12 1H11 1H12
IBEX 35® Futures MiniIBEX 35® Futures IBEX 35® Options
8,437
6,358
16,443
13,446
6,164
8,269
14,532
17,714
2Q11 2Q12 1H11 1H12
Stock Futures Stock Options
Derivatives
Stock derivatives contracts traded Index derivatives contracts traded
Positive developments in all the instruments on IBEX 35 ®
(Thousand of contracts) (Thousand of contracts)
Thousands of € 2Q 2012 2Q 2011 % 1H 2012 1H 2011 %
Revenues 7,157 5,712 25.3% 12,608 12,541 0.5%
Expenses (2,899) (2,907) -0.3% (5,812) (5,686) 2.2%
EBITDA 4,258 2,805 51.8% 6,796 6,855 -0.9%
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July 2012
Business Evolution January – June 2012
2Q11 3Q11 4Q11 1Q12 2Q12
753
1.202
499
1,190 1,226
Fixed income
AIAF – Turnover (Billion €)
MBS&
ABS
Commercial
paper
Corporate
bonds
Preferred
securities
Maintaining the positive trend
Like previous quarter,
significant increase in trading
to maturity (54.6%) and
decrease in "repos" and
simultaneous (-66.3%)
Thousands of € 2Q 2012 2Q 2011 % 1H 2012 1H 2011 %
Revenues 2,403 2,347 2.4% 5,308 4,645 14.3%
Expenses (773) (747) 3.5% (1,527) (1,476) 3.5%
EBITDA 1,630 1,600 1.9% 3,781 3,169 19.3%
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July 2012
Business Evolution January – June 2012
IT & Consulting
Sustained growth in the second quarter
Trading support services
Continuity & Contingency
Compliance (SIR,SICAM,RIC)
Financial Comunication (Highway)
Increase in connection services (Proximity) and MaX terminals
Product services evolution (Hosting & Housing) and developing new services of cloud
computing (BME inCloud)
International expansion of services and developing Market Abuse phase II according to
new ESMA guidelines
Increased coverage by region and entity
Thousands of € 2Q 2012 2Q 2011 % 1H 2012 1H 2011 %
Revenues 4,184 4,043 3.5% 8,286 7,733 7.2%
Expenses (2,671) (2,643) 1.1% (5,289) (5,310) -0.4%
EBITDA 1,513 1,400 8.1% 2,997 2,423 23.7%
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July 2012
Business Evolution January – June 2012
Breakdown by business areas
€ Thousand 1H 2012 1H 2011 % 1H 2012 1H 2011 %
Equity Market 60,093 68,906 -12.8% 43,893 52,795 -16.9%
Clearing & Settlement 41,382 37,798 9.5% 34,171 30,879 10.7%
Listing 11,466 11,580 -1.0% 6,837 6,945 -1.6%
Market Data & Information 17,557 16,187 8.5% 13,860 12,953 7.0%
Derivatives 12,608 12,541 0.5% 6,796 6,855 -0.9%
IT & Consulting 8,286 7,733 7.2% 2,997 2,423 23.7%
Fixed income 5,308 4,645 14.3% 3,781 3,169 19.3%
REVENUES EBITDA
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July 2012
Business Evolution January – June 2012
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 19 -
July 2012
Business Evolution January – June 2012
Balance sheet
as of June, 30th
(Thousands of €)2012 2011
Goodwill 82,190 82,190
Other non-current assets 85,822 87,452
Cash and cash equivalents 317,485 347,851
Non-Group current financial assets 37,881,162 34,914,981
Other current assets 107,046 81,679
Total assets 38,473,705 35,514,153
Equity 433,459 444,474
Non-current liabilities 18,531 15,313
Current liabilities 38,021,715 35,054,366
Total equity and liabilities 38,473,705 35,514,153
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July 2012
Business Evolution January – June 2012
P/L
Thousands of € 2Q 2012 2Q 2011 % 1H 2012 1H 2011 %
Revenues 81,200 76,832 5.7% 158,586 161,742 -2.0%
Expenses (25,757) (25,105) 2.6% (50,837) (49,627) 2.4%
EBITDA 55,443 51,727 7.2% 107,749 112,115 -3.9%
EBIT 53,441 49,820 7.3% 103,688 108,273 -4.2%
Financial results 1,051 1,452 -27.6% 1,592 2,158 -26.2%
EBT 54,321 51,334 5.8% 104,961 110,339 -4.9%
Net Profit 38,532 36,466 5.7% 74,045 77,946 -5.0%
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July 2012
Business Evolution January – June 2012
EBITDA 1H 2012/2011 [€ Mill.] Net Profit 1H 2012/2011 [€ Mill.]
Comparison with 1H 2011
Revenues 1H 2012/2011 Costs 1H 2012/2011
Margins
[€ Mill.] [€ Mill.]
158.6161.7
1H 2012 1H 2011
-2.0% + 2.4%
50.849.6
1H 2012 1H 2011
- 3.9%
107.7 112.1
1H 2012 1H 2011
- 5.0%
74.0 77.9
1H 2012 1H 2011
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July 2012
Business Evolution January – June 2012
31.7% 32.7% 32.1% 30.7%
2Q12 2Q11 1H12 1H11
48.2% 50.4% 49.0% 45.8%
2Q12 2Q11 1H12 1H11
65.8% 64.8% 65.4% 66.9%
2Q12 2Q11 1H12 1H11
Efficiency & Profitability ROE Evolution EBIT/Revenues Ratio Evolution
% ROE % EBIT/Revenues
% Cost/EBIT % Efficiency
Efficiency Ratio Evolution Cost/EBIT Ratio Evolution
34.1% 31.4% 34.1% 35.1%
2Q12 2Q11 1H12 1H11
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July 2012
Business Evolution January – June 2012
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 24 -
July 2012
Business Evolution January – June 2012
Business drivers: Highly liquid market
Company RK
1H12 Daily avg. 1H12 Relative weight at
EuroStoxx50 (%)1) Turnover (Billion €) Turnover (Billion €)
Source: Bloomberg 1) As of 30/06/2012
• Spanish blue-chips are the most liquid stocks in the EMU
75.6
75.1
57.5
50.7
49.7
49.1
49.0
47.6
46.8
44.4
25.3
22.1
0.60
0.59
0.45
0.40
0.39
0.39
0.39
0.38
0.37
0.35
0.20
0.17
3.087%
3.655%
1.204%
2.165%
0.715%
3.324%
1.984%
4.361%
2.264%
2.357%
1.476%
1.481%
1
2
3
4
5
6
7
8
9
10
26
31
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July 2012
Business Evolution January – June 2012
• Distribution by markets of business volume of the IBEX 35® companies (2009 – 2011)
Diversified market
Source: Interim Reports from listed companies obtained from CNMV
2009 2011
48%
19%
10%
23%
Rest OCDE EU Spain
52%
40%
18%
15%
27%
Rest OCDE EU Spain
60%
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July 2012
Business Evolution January – June 2012
Key ratios benchmarking
• Efficiency • ROE
- BME s data as of 30/06/2012
- Average peer Group figures are calculated using last results published and not taking account
of goodwill impairment charges
34,1%
17,5%
BME Average Peer
Group
32,1%
50,9%
BME Average Peer
Group
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July 2012
Business Evolution January – June 2012
Solid operating leverage
Costs Revenues Revenues not linked to volumes Ratio
78%
90%
106% 109% 105% 103% 112% 116%
2005 2006 2007 2008 2009 2010 2011 1H12
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July 2012
Business Evolution January – June 2012
Projects •Shares, ETFs, Warrants and other securities, traded on one single system
•The new system multiplies transactional capacity while providing growth potential
•Reduction of latency over ten times SIBE
•New services of “Front Office Significant Events” and messaging back up service MARKET DATA
•Entities connected to hubs in London multiplied by two. 33% increase in lines connected in proximity. Released in 2013 Co-location services
PROXIMITY/CO-LOCATION
• Is reaffirmed as a funding mechanism for companies
•With the listing of Suávitas, growth segment companies amounted to 21 MAB
• Increasing the number of participants in over 50%.
•Four times the volume recorded in the second quarter of 2012 versus the same quarter last year 2011. Increases a 786% open interest
MEFFPOWER
• In a first phase in 2013 will cover the repurchase (or repo) between entities and monetary policy operations of these with the Bank of Spain
COLLATERAL MANAGEMENT
•Good reception with the latest developments and last corporate debt issues
•The turnover and number of trades increased 5 and 10 times with respect to 1H11 SEND
•Funds Platform aims to provide greater efficiency to the process of subscription and redemption Funds Platform
• Introduced negotiation since last May 29th BONO 10
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July 2012
Business Evolution January – June 2012
Q&A