first quarter 2010 · 1st interim dividend (september) = 0.4 €/share 2nd interim dividend...
TRANSCRIPT
BusinessBusinessPerformance
First quarter 2010
- 1 -
April 2010
Business Evolution January - March 2010
Disclaimer
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- 2 -
April 2010
Business Evolution January - March 2010
Index
A. Results
B. Business Overview
C. FinancialsC a c a s
D. Business Drivers
- 3 -
April 2010
Business Evolution January - March 2010
Index
A. Results
B. Business Overview
C. FinancialsC a c a s
D . Business drivers
- 4 -
April 2010
Business Evolution January - March 2010
ResultsQ t l N t P fitQuarterly Net Profits
+ 7.6%
+ 6.8%
33.5
47.8
34.9 33.8 36.134.2
1Q09 2Q09 3Q09 4Q09 1Q10
Best quarter results since 4Q08
- 5 -
April 2010
Business Evolution January - March 2010
Comparison with 1Q09
Revenues 1Q 2010/2009 Costs 1Q 2010/2009[€ Mill ] [€ Mill ]
24.5 24.577.5
[€ Mill.] [€ Mill.]
+ 0.1%+6.6%
2010 2009
72.7
2010 2009
MarginsEBITDA 1Q 2010/2009[€ Mill.] Net Profit 1Q 2010/2009[€ Mill.]
Margins
+ 9.9% + 7.6%
53.1
48.336.1
33.5
- 6 -
April 2010
Business Evolution January - March 2010
2010 2009 2010 2009
Profit and Loss Account 1Q10
Thousands of € 1Q 2010 1Q 2009 %
Revenues 77,549 72,729 6.6%Revenues 77,549 72,729 6.6%
Expenses (24,499) (24,474) 0.1%
EBITDA 53,050 48,255 9.9%
EBIT 51,009 46,421 9.9%
Financial results 316 1,223 -74.2%
EBT 51 212 47 644 7 5%EBT 51,212 47,644 7.5%
Net Profit 36,068 33,530 7.6%
- 7 -
April 2010
Business Evolution January - March 2010
Dividends: Maximizing shareholders´ returns77%Pay Out 82% 86% 89%
1 2Div /Shr 1.9721 9725 1.972
0 986
0.372
1.2Div./Shr. 1.9721.9725 1.972
0.60
1.016 0.9860.6
0.600.956 0.986
0 4
0.6
0.60
Interim Dividend/Share
Suplementary Dividend/Share
0.4
2006 2007 2008 2009
Dividend proposal: maintenance of dividend/share
Extraordinary Dividend/Share
Dividend proposal: maintenance of dividend/share
Suplementary Dividend: 0.6 €/share => Ordinary Pay Out Ratio: 89%
- 8 -
April 2010
Business Evolution January - March 2010Extraordinary Dividend: 0.372 €/share
Dividends: Maximizing shareholders´ returnsDividends: Maximizing shareholders returnsDividends paidp
1st Interim Dividend (September) = 0.4 €/share
2nd Interim Dividend (December) 0 6 €/share2nd Interim Dividend (December) = 0.6 €/share
Dividend Proposals
Suplementary Dividend: 0.6 €/share => Ordinary Pay Out: 89%
Extraordinary Dividend: 0.372 €/share
Total Dividend
1 972 €/share1.972 €/share
Repetition of 2008 Dividend
- 9 -
April 2010
Business Evolution January - March 2010
Index
A. Results
B. Business overview
C. FinancialsC a c a s
D . Business drivers
- 10 -
April 2010
Business Evolution January - March 2010
Business Areas
Consolidated Revenues 1Q 2010 - %
EBITDA 1Q 2010 - %1Q 2010 % 1Q 2010 %
Fixed IT &
Consulting Derivatives
Fixed Income 2.6%
IT & Consulting
1 5%
Information
Derivatives 8.3%
Income 2.7%
g4.4%
Information 11.0%
Derivatives 6.7%
Income 2.6% 1.5%
Equity 45.2%
Listing 6.6%
Information 10.1%
Equity 48.3%
Listing 4.7%
Clearing & Settlement 22.7%
Clearing & Settlement 25.2%
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April 2010
Business Evolution January - March 2010
E it M k tEquity MarketThousands of € 1Q 2010 1Q 2009 %
Revenues 34,717 28,667 21.1%
Expenses (7,987) (8,523) -6.3%
EBITDA 26,730 20,144 32.7%
Equity Turnover, volume and shares traded
EBITDA 26,730 20,144 32.7%
185
237217
259229
61
75 7686
96
5666
9185 83 87
77
66
78(*)
185
27.1 31.2 27.2 33.1 24,0
7.6 7.8 8.2 8.59.5
10.2 10.6 9.8 10.8 12.17.0 8.1
17.07.8 8.2 8.5 8.3 7.2 7.9
2.8 2.6 2.5 2.6 2.82.3
3.13.6
2.5 2.33.0 3.4 3.1
2.7
1Q09 2Q09 3Q09 4Q09 1Q10Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)
The path to recovery continues
(*) Value traded as of 27th April (17 sessions)
3/09 4/09 5/09 6/09 7/09 8/09 9/09 10/09 11/09 12/09 1/10 2/10 3/10 4/10Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)
- 12 -
April 2010
Business Evolution January - March 2010
The path to recovery continues
Clearing and SettlementThousands of € 1Q 2010 1Q 2009 %Thousands of € 1Q 2010 1Q 2009 %
Revenues 17,428 16,043 8.6%
Expenses (3,508) (3,502) 0.2%
Settlement: Number of trades settled (Million of trades)
Securities under custody: Nominal value(Billion €)
EBITDA 13,920 12,541 11.0%
1,405 1,470 1,484 1,513 1,517
8.0 8.6 8.7 9.4 9.4
( )
8.0
1Q09 2Q09 3Q09 4Q09 1Q101Q09 2Q09 3Q09 4Q09 1Q10
Revenues in this unit increased 8.6%. Registry revenues grew 4.5%
- 13 -
April 2010
Business Evolution January - March 2010
Market Data & InformationThousands of € 1Q 2010 1Q 2009 %1Q 2010 1Q 2009 %
Revenues 7,718 8,829 -12.6%
Expenses (1,620) (1,526) 6.2%
Information: Subscribers to primary market sources (Average for the period in thousands of subscribers and millions of accesses per quote)
EBITDA 6,098 7,303 -16.5%
152
123107 109 104
• Broadening of Fair Value Compliance services
• Decrease in number of connections to on demand
4.4
6.9 7.05.5 6.2
connections to on-demand information
• Increase in the number of clients • Reduction in the number of
ti fl b ib
1Q09 2Q09 3Q09 4Q09 1Q10
Cyclical delay of recovery
continuous-flow subscribers
- 14 -
April 2010
Business Evolution January - March 2010
Cyclical delay of recovery
ListingListingThousands of € 1Q 2010 1Q 2009 %
Revenues 5,047 7,171 -29.6%
Expenses (2,462) (2,624) -6.2%
EBITDA 2,585 4,547 -43.1%
127.0
AIAF: New listings (Billion €)
Private Fixed Income:
80.956.6
0112.1
68.6
• Increase in outstanding balances by 1.5% (866,273 million euros)
Equity:• New MAB listings continue
1Q09 2Q09 3Q09 4Q09 1Q10Commercial Corporate MBS ABS Preferred
• New MAB listings continue (Gowex and Medcomtech)
• IPO market picks up (Amadeus, Renovalia and T-Solar)
paperp
bonds securities
Slow down in AIAF issues
- 15 -
April 2010
Business Evolution January - March 2010
DerivativesThousands of € 1Q 2010 1Q 2009 %1Q 2010 1Q 2009 %
Revenues 6,391 6,547 -2.4%
Expenses (2,675) (2,972) -10.0%
Turnover (Thousand contracts) Turnover by underlying asset (Thousand contracts)
EBITDA 3,716 3,575 3.9%
21,083 22,32120,468
16,24313,958
23,614
17,103
25,80324,315
19,325
3,232 3,482 3,146 3,082 3,145
1Q09 2Q09 3Q09 4Q09 1Q101Q09 2Q09 3Q09 4Q09 1Q10 1Q09 2Q09 3Q09 4Q09 1Q10Index Derivatives Equity Derivatives
1Q09 2Q09 3Q09 4Q09 1Q10Stock Opt Stock Fut Opt IBEX 35® Fut Mini IBEX 35® Fut IBEX 35®
IBEX 35® derivatives contracts recover in activity
- 16 -
April 2010
Business Evolution January - March 2010
IT & ConsultingThousands of € 1Q 2010 1Q 2009 %1Q 2010 1Q 2009 %
Revenues 3,390 3,905 -13.2%
Expenses (2,544) (2,493) 2.0%
National and international orders channelled to SIBE through Visual Trader (Million)
EBITDA 846 1,412 -40.1%
10.5
12.5
9.7• In the VT network, the number
f Q5.2
5.8of orders channelled in 1Q10 increased 85.4% compared to 1Q09
• Final phase of consulting j t i C i d M i
1Q09 2Q09 3Q09 4Q09 1Q10
projects in Croacia and Mexico
Development of new projects and partnerships
- 17 -
April 2010
Business Evolution January - March 2010
Development of new projects and partnerships
Fixed incomeThousands of € 1Q 2010 1Q 2009 %
Revenues 2,087 1,549 34.7%
Expenses (657) (719) -8.6%
AIAF – Turnover (Billion €)
p ( ) ( )
EBITDA 1,430 830 72.3%
759
9951,119
573
821
573
1Q09 2Q09 3Q09 4Q09 1Q10MBS& ABS
Commercial paper
Corporatebonds
Preferred securities
Thi b i ´ b t t i d lt- 18 -
April 2010
Business Evolution January - March 2010
This business area´s best quarter in revenue and results
Breakdown by business areas
€ Thousand 1Q 2010 1Q 2009 % 1Q 2010 1Q 2009 %
REVENUES EBITDA
€ Thousand 1Q 2010 1Q 2009 % 1Q 2010 1Q 2009 %
Equity Market 34,717 28,667 21.1% 26,730 20,144 32.7%
Clearing & Settlement 17,428 16,043 8.6% 13,920 12,541 11.0%
Listing 5,047 7,171 -29.6% 2,585 4,547 -43.1%
Market Data & Information 7,718 8,829 -12.6% 6,098 7,303 -16.5%
D i ti 6 391 6 547 2 4% 3 716 3 575 3 9%Derivatives 6,391 6,547 -2.4% 3,716 3,575 3.9%
IT & Consulting 3,390 3,905 -13.2% 846 1,412 -40.1%
Fixed income 2,087 1,549 34.7% 1,430 830 72.3%
- 19 -
April 2010
Business Evolution January - March 2010
Index
A. Results
B. Business overview
C. FinancialsC a c a s
D. Business drivers
- 20 -
April 2010
Business Evolution January - March 2010
Balance sheetas of March, 31 st
(Thousands of €)2010 2009
Goodwill 80 619 80 619Goodwill 80,619 80,619Other non-current assets 87,547 75,134Cash and cash equivalents 377,536 420,842Non-Group current financial assets 11,877,104 7,901,826Other current assets 63,474 109,782
Total assets 12,486,280 8,588,203
Equity 491,089 499,552Non-current liabilities 11,602 9,715Current liabilities 11,983,589 8,078,936
Total equity and liabilities 12,486,280 8,588,203
- 21 -
April 2010
Business Evolution January - March 2010
P/LThousands of € 1Q 2010 1Q 2009 %
Revenues 77,549 72,729 6.6%
Expenses (24,499) (24,474) 0.1%
EBITDA 53,050 48,255 9.9%
EBIT 51,009 46,421 9.9%
Financial results 316 1,223 -74.2%
EBT 51 212 47 644 7 5%EBT 51,212 47,644 7.5%
Net Profit 36,068 33,530 7.6%
- 22 -
April 2010
Business Evolution January - March 2010
Efficiency & Profitability
65 8% 63 8%
ROE Evolution EBIT/Revenues Ratio Evolution% ROE % EBIT/Revenues
65.8% 63.8%
30.5% 27.6%
1Q10 1Q09
Efficiency Ratio EvolutionCost/EBIT Ratio Evolution
1Q10 1Q09
33 7%48.0% 52.7%
% Cost/EBIT % Efficiency
Efficiency Ratio EvolutionCost/EBIT Ratio Evolution
31.6% 33.7%
- 23 -
April 2010
Business Evolution January - March 2010
1Q10 1Q091Q10 1Q09
Index
A. Results
B. Business overview
C. FinancialsC a c a s
D. Business drivers
- 24 -
April 2010
Business Evolution January - March 2010
Business drivers: Highly liquid market • Spanish blue-chips are the most liquid stocks in the EMU
CompanyRK1Q10 Daily avg. 1Q10 Relative weight at
EuroStoxx50 (%)1)Turnover (Billion €) Turnover (Billion €)
Spanish blue chips are the most liquid stocks in the EMU
75.238.834.033 7
1234
1.190.620.540 54
4.950%4.439%2.469%2 342%33.7
20.518.817.1
4567
0.540.330.300.27
2.342%2.184%1.851%3.948%17.1
17.017.014.6
789
10
0.270.270.270.23
3.948%5.799%2.611%1.514%
Source: Bloomberg 1) As of 31/03/2010
10.024 0.16 0.855%
- 25 -
April 2010
Business Evolution January - March 2010
Highly liquid market• Quality of spreads and best market impact for Spanish stocks
Highly liquid market
0.011
CompanyRK Avg.Spread (€)
1Q09
0,21
Avg.Spread (%)
0.06
Avg.Spread (€)1Q10
Avg.Spread (%)
0.0060.010.010.010 02
234
0,080,200,210 15
0.040.070.060 08
0.0080.0070.0040 0140.02
0.040.020 01
5678
0,150,150,210,31
0.080.100.120 13
0.0140.0490.0160.0070.01
0.070.02
89
10
0,310,220,24
0.130.150.15
0.0070.0510.015
0.171%
Source: Market annual and monthly reports
0.085%
1) As of 31/03/2010
- 26 -
April 2010
Business Evolution January - March 2010
Diversified market• Distribution by markets of business volume of the IBEX 35 companies (2008 - 2009)
Diversified market
2008 2009
48% 52%51% 49%
10%
23%
9%
22%
19%
10%
18%
9%
Rest OCDE EU Spain
Source: Interim Reports from listed companies obtained from CNMV
Rest OCDE EU Spain
- 27 -
April 2010
Business Evolution January - March 2010
Markets: Latibex
BME: Presence in Latin AmericaShareholdingsShareholdings
• Mexico: Bolsa Mexicana de Valores
Consulting
• Colombia: Cámara de Riesgo Central de Contraparte de Colombia, S.A.
g
• Guatemala: Support program for the Stock Market Commission
• Colombia: Diagnostic of the operating structure of the Colombian stock market
• Colombia: Advisory role
Technological Cooperation
• Colombia: Advisory role• Chile: The creation and development of a central
counterparty for the Chilean product market
INFOBOLSA:• Mexico
SIBE:• Rep. Dominicana• El Salvador• Venezuela• Venezuela• Ecuador• Uruguay
VISUAL TRADER• Chile
DERIVATIVESMexico (MexDer)
- 28 -
April 2010
Business Evolution January - March 2010
• Mexico (MexDer)
Key ratios benchmarking• Efficiency • ROE• Efficiency • ROE
51 6%
30.6%
8 6%
31.6%
51.6%
8.6%
BME Average Peer Gro pBME Average Peer
BME´s data as of 31/03/2010
GroupBME Average Peer Group
- BME s data as of 31/03/2010
- Average peer Group figures are calculated using last 2009 results published and not taking account of goodwill impairment charges
- 29 -
April 2010
Business Evolution January - March 2010
Solid operating leverage
90%
106% 109% 105% 104%
78%
90%
Costs Revenues Revenues not linked to volumes Ratio
2005 2006 2007 2008 2009 2010
- 30 -
April 2010
Business Evolution January - March 2010
Costs Revenues Revenues not linked to volumes Ratio
Growth Strategygy
Core Growth Diversification RNLV
MAB
IPOs
XX
X XBME INNOVA: SIR, SICAM, RICSuscription & Redemption
platform for FundsSEND: Private fixed income
XX
XXX
X
Trade repository
CCP XXX
X
Link-Up Markets
Fair Value Compliance
XX
XX
XX
- 31 -
April 2010
Business Evolution January - March 2010
Q&A
- 32 -
April 2010
Business Evolution January - March 2010