presentación spain investors' day 12 enero 2012

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January 2012

BME- Spain Investor Day Presentation

BMESpain Investor Day

Presentation12th January 2012

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January 2012


Presentation index

1. 2011: Summary of company activity

2. 2012: A challenging year

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January 2012


2011: Summary of company activity• A Difficult year in markets as result of macro scenario and soverign risk

crisis• Worsening of economic conditions during the year led to market prices downturn -13.1% for IBEX 35® and -20/25% for medium and smallcap benchmark.

• Volatility index rose to 60% levels and intraday volatility climbed above 2% in 25% of the trading days.

• Market levels impacted year´s turnover, -10.8% yoy. Underlying market activity remains strong with +13.2% yoy increase in number of trades.

-13%

-21%

-25%

70

80

90

100

110

120

dic

-10

en

e-1

1

feb

-11

ma

r-11

ab

r-11

ma

y-11

jun

-11

jul-

11

ag

o-1

1

sep

-11

oct

-11

no

v-11

dic

-11

Bas

e in

dex

po

ints

lev

el 1

00 a

t 20

10/1

2/31

IBEX 35

Ibex Midcap

Ibex Small Cap

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January 2012


2011: Summary of company activity• Time for companies to choose Markets as source of financing

Source: FESE

895 1.372

13.78018.797

21.32714.294,0

14.164,3

18.534,0

0

15.000

30.000

45.000

2008 2009 2010 2011 (*)

€Millions

Already Listed Companies

Newly Listed Companies (IPOs) 37.331

27.944

15.666

22.222

(*) Data from Jan/11 to Nov/11

Investment Flows channelled through the Exchange (EUROm)

+ 33,6%

• Banking vs Market Financing is 30/70 US and 70/30 Europe. Scope to grow.

• Role of markets: 34% growth in flows to Exchange combination of IPOs and capital incresases.

• 4.0 €bn. Market cap raised through scrip dividends in 2011.

• Development of small companies through the Market: 5 listings and 4 capital increases in 2011 for growth segment of MAB.

• Private Fixed Income listings of 234 €bn. in 2011, 14.2% increase yoy.

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January 2012


BME´s & Avg.peer group efficiency ratio

2011: Summary of company activity• Focus on efficiency and cost management

Effective cost base management and benchmark in effciency thanks to business model

30,3%

48,1%

0%

10%

20%

30%

40%

50%

60%

BME Average Peer Group

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January 2012


2011: Summary of company activity• A continued trend in protection of value to shareholders

78%

103%

110%

2005 2010 9M/2011

Costs Revenues Renenues not linked to volumes Ratio

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January 2012


2011: Summary of company activity• High standard of retribution to shareholders

• As listed company, since 2006 BME has distributed €841 million or 10.1 euros/share in ordinary and extraordinary dividends.

• In 2011 BME´s return was 27.7%, 11.1% through dividend payments.

• BME´s payout ratio 85-90% is one of the highest in sector and market. Sustainable Pay-out

0,600,956 0,986

0,40 0,40 0,40

0,60 0,60 0,60

0,600

1,016 0,986

0,60 0,60

0,372 0,372

2006 2007 2008 2009 2010 2011

Primer Dividendo a Cuenta Dividendo Complementario Segundo Dividendo a Cuenta Dividendo Extraordinario

1,20 1,972 1,9721,972DividendoTotal/Acción

Pay Out 77% 82% 86% 89%

1,972

86%

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January 2012


2011: Summary of company activity• Solid and healthy company

• Limited goodwill and a positive impairment test

Goodwill stands at 18% of shareholders’ equity.

Last impairment test shows a positive difference in value of more than 40%.

• No debt, optionality for leverageShort-term debts payable are comprised solely of deposited guarantees (also reflected on the asset side) and the transitory balances of the company’s normal operations.

• Liquid position

Balance sheetas of September, 30th

(Thousands of €)2011 2010

Goodwill 82,190 80,619

Other non-current assets 85,677 89,220

Cash and cash equivalents 343,753 344,679

Non-Group current financial assets 30,075,557 20,253,743

Other current assets 37,649 40,484

Total assets 30,624,826 20,808,745

Equity 450,266 458,187

Non-current liabilities 15,291 16,233

Current liabilities 30,159,269 20,334,325

Total equity and liabilities 30,624,826 20,808,745

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January 2012


2011: Summary of company activity• Profitable in all business lines

€ Thousand 9M 2011 9M 2010 % 9M 2011 9M 2010 %

Equity Market 103,999 104,030 0.0% 80,125 80,014 0.1%

Clearing & Settlement 58,498 55,426 5.5% 48,110 45,429 5.9%

Listing 18,347 16,535 11.0% 11,405 9,105 25.3%

Market Data & Information 24,324 23,288 4.4% 19,214 18,627 3.2%

Derivatives 18,207 19,596 -7.1% 9,759 11,528 -15.3%

IT & Consulting 11,988 10,160 18.0% 4,118 2,411 70.8%

Fixed income 6,333 5,704 11.0% 4,108 3,711 10.7%

REVENUES EBITDA

Equity 45.3%

Clearing & Settlement

27.2%

Listing 6.4%

Information 10.9%

Derivatives 5.5%

Fixed Income 2.3%

IT & Consulting

2.3%

Equity 43.0%

Clearing & Settlement

24.2%

Listing 7.6%

Information 10.1%

Derivatives 7.5%

Fixed Income

2.6%

IT & Consulting

5.0%

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January 2012


2012: A Challenging year• Regulation: Driver for Business performance. Wind for Transparency and risk

control represents business oportunities for Regulated Markets

Regis-TR Meff Energy CCP Equity LinkUp Mkts

Projects in process related to regulatory changing times

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January 2012


TradingTrading

2012: A Challenging year• Developments all along the value chain

ListingListing

InformatioInformationn

Clearing Clearing & & SettlemenSettlementt

MABETFsBME InnovaInResearch

Regis-TRLinkUp MarketsCCP EquityMeff Energy

London HubsSENDNew SIBEFunds Platform

Taylored FeedsBME ClimaOpen FinanceIndexesProximity & Colocation

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January 2012


• Latinoamerica. Developments with projection to the Area

2012: A Challenging year

REGIS-TR: OTC derivatives trade repository

Market Data

LinkUp Markets: Settlement Services

Open Finance: IT Front-office solutions

Technological Cooperation

SIBE:• Argentina

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January 2012


• Resiliant bussines for difficult times and plug-in to value in recovery

2012: A Challenging year

Free CF generation

Low Capex

Critical mass

Efficiency

Low Marginal Cost

OperatingLeverage

presentación spain investors' day 12 enero 2012

Economy & Finance