Download - BME financial results Q4 and FY2012
- 1 -
February 2013
Business Evolution January – December 2012
Business Performance
Fourth quarter and
FY/2012
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February 2013
Business Evolution January – December 2012
Disclaimer
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February 2013
Business Evolution January – December 2012
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 4 -
February 2013
Business Evolution January – December 2012
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 5 -
February 2013
Business Evolution January – December 2012
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
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February 2013
Business Evolution January – December 2012
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%
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February 2013
Business Evolution January – December 2012
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
=
=
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February 2013
Business Evolution January – December 2012
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
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February 2013
Business Evolution January – December 2012
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
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February 2013
Business Evolution January – December 2012
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%
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February 2013
Business Evolution January – December 2012
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 12 -
February 2013
Business Evolution January – December 2012
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%
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February 2013
Business Evolution January – December 2012
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%
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February 2013
Business Evolution January – December 2012
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%
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February 2013
Business Evolution January – December 2012
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
Thousands of € 4Q 2012 4Q 2011 % FY 2012 FY 2011 %
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%
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February 2013
Business Evolution January – December 2012
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
Thousands of € 4Q 2012 4Q 2011 % FY 2012 FY 2011 %
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%
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February 2013
Business Evolution January – December 2012
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%)
Thousands of € 4Q 2012 4Q 2011 % FY 2012 FY 2011 %
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%
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February 2013
Business Evolution January – December 2012
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 €)
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February 2013
Business Evolution January – December 2012
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)
Thousands of € 4Q 2012 4Q 2011 % FY 2012 FY 2011 %
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%
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February 2013
Business Evolution January – December 2012
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
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February 2013
Business Evolution January – December 2012
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 €)
Thousands of € 4Q 2012 4Q 2011 % FY 2012 FY 2011 %
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%
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February 2013
Business Evolution January – December 2012
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
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February 2013
Business Evolution January – December 2012
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
Thousands of € 4Q 2012 4Q 2011 % FY 2012 FY 2011 %
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%
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February 2013
Business Evolution January – December 2012
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
Business Evolution January – December 2012
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 26 -
February 2013
Business Evolution January – December 2012
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
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February 2013
Business Evolution January – December 2012
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%
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February 2013
Business Evolution January – December 2012
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
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February 2013
Business Evolution January – December 2012
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
Business Evolution January – December 2012
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 31 -
February 2013
Business Evolution January – December 2012
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
- 32 -
February 2013
Business Evolution January – December 2012
• 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
Business Evolution January – December 2012
• 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
Business Evolution January – December 2012
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
Business Evolution January – December 2012
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
Business Evolution January – December 2012
Q&A