presentation bme 2011 financial results

February 2012Business Evolution January – December 2011BOLSAS Y MERCADOS ESPAÑOLES

Business Performance

Fourth quarter andFY/2011


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2


Results

Business Overview

Financials

Business Drivers

IndexA

B

C

D

3


Results

Business Overview

Financials

Business Drivers

IndexA

B

C

D

4


+ 3.3%

ResultsFY 2011/2010

FY 2011/2010 Adjusted

155.1

154.2FY2010

FY2011

153.9

149.0FY2010

FY2011

+ 0.6%

Net Profit(€ Million)

Net Profit growth of 3.3% (adjusting extraordinary items)

5


- 2.3%

Results

37.64Q10

1Q11

2Q11

3Q11

4Q11

41.5

36.5

40.5

36.7


Net Profit for 4Q11 decrease of 2.3%

6


+10.7%

Results

84.41H10

2H10

1H11

2H11

69.7

77.9

77.2


Net Profit for 2H11 rise of 10.7%

7


Profit and Loss Account 2011

Thousands of € 4Q2011 4Q2010 % FY2011 FY2010 %

Revenues 76,889 81,507 -5.7% 321,395 326,249 -1.5%

Expenses (24,322) (25,544) -4.8% (98,337) (103,199) -4.7%

EBITDA 52,567 55,963 -6.1% 223,058 223,050 0.0%

EBIT 49,972 53,924 -7.3% 214,685 214,997 -0.1%

Financial Results 1,444 1,432 0.8% 4,774 3,039 57.1%

EBT 51,275 54,745 -6.3% 219,087 217,071 0.9%

Net Profit 36,688 37,558 -2.3% 155,115 154,152 0.6%

8


Dividends:Maximizing shareholders´ returns

First Interim Dividend Suplementary Dividend Second Interim Dividend Extraordinary Dividend

2006 2011201020092007 2008

Suplementary Dividend: 0.6 €/share -> Ordinary payout ratio: 86%Extraordinary Dividend: 0.372 €/share

Pay-out Dividend proposal: maintenance of dividend/share

Pay Out 77% 86%86%89%82% 86%

1.20 1.9721.9721.9721.972 1.972Total Dividends / Share

0.60 0.400.400.40

0.956 0.9860.600.600.60

0.600.60

0.60

1.016 0.986

0.3720.372

0.60

0.372

10


Results

Business Overview

Financials

Business Drivers

IndexA

B

C

D

11


Business Areas Consolidated Revenues

FY 2011 - %EBITDA

FY 2011-%

Equity Clearing & Settlement ListingInformation Derivatives Fixed IncomeIT & Consulting

12

43.8%

28.0%6.5%

11.4%

5.4%

2.2%2.7%

41.9%

24.8%7.6%

10.5%

7.4%

2.5%

5.3%


Equity Market

Impact of short selling ban

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

108115

72

99

67

82 82 8374

105

7159

7869

59

Turnover (! Bill.)

Shares (Bill.) Trades (Mill.)

295

247 238 235207

4Q10 1Q11 2Q11 3Q11 4Q11

Turnover (! Bill.)

Shares (Bill.) Trades (Mill.)


Revenues 29,306 33,996 -13.8% 133,305 138,026 -3.4%

Expenses (8,510) (8,179) 4.0% (32,384) (32,195) 0.6

EBITDA 20,796 25,817 -19.4% 100,921 105,831 -4.6%

13

21.315.2 15.6

23.410.5 10.7

18.19.3 10.8

21.710.0 9.7

24.8

8.2 7.9

3.34.6

3.44.6 3.8 4.6

3.5 3.4 3.5 4.2 4.53.7 4.0

3.42.8

11.2 13.0 10.5 12.4 10.2

52.0 44.6 38.2 41.3 40.8


Increase in operations settled and total nominal amount registered

Clearing and Settlement

Settlement: Number of trades settled (Million of trades)

4Q10 1Q11 4Q112Q11 3Q11

Securities under custody: Nominal value(Billion €)

11.8 11.611.9

10.4 11.8

4Q10 1Q11 4Q112Q11 3Q11

1,564 1,615 1,6641,615 1,612


Revenues 20,358 19,849 2.6% 78,856 75,275 4.8%

Expenses (3,926) (3,935) -0.2 (14,314) (13,932) 2.7%

EBITDA 16,432 15,914 3.3% 64,452 61,343 5.2%

14


Market Data & Information

Information: Subscribers to primary market sources (Average for the period in thousands of subscribers and millions of accesses per quote)

Ingresos Gastos

Market Data best 2011´ quarter in revenues

4Q10 1Q11 4Q112Q11 3Q11

103

4.8

102

4.9

100

4.4

102

3.9

108

3.1


Revenues 9,062 7,909 14.6% 33,386 31,197 7.0%

Expenses (1,980) (1,794) 10.4% (7,090) (6,455) 9.8%

EBITDA 7,082 6,115 15.8% 26,296 24,742 6.3%

Subscribers (Thous.) P.Quote (Mill.)

15


Listing

Investment flows channeled through the Exchange record since 2007

4Q10 1Q11 2Q11 3Q11 4Q11

Investment flows channeled through the Exchange from listed companies reached € 37.7 billion in 2011, the fourth highest ever for the Spanish stock market

4.0 billion in scrip dividends, 91.9% increase yoy

Primary market reactivation in corporate fixed income, remarkable in promissory notes and covered bonds

48.270.8 68.3

36.5

103.0

Commercial paper ABSCorporate bonds Preferred securitiesMBS

AIAF New listings (Billion €)


Revenues 5,934 6,355 -6.6% 24,281 22,890 6.1%

Expenses (2,435) (2,661) -8.5% (9,377) (10,091) -7.1%

EBITDA 3,499 3,694 -5.3% 14,904 12,799 16.4%

16


Derivatives

Index derivatives contracts traded Stock derivatives contracts traded

4Q10 4Q11 FY10 FY11

(Thousand of contracts) (Thousand of contracts)

Volumes affected by short selling ban. Open interest increase of 4.3%

IBEX35® OptionsMiniIBEX35® FuturesIBEX35® Futures

6,651 5,905

19,684

27,579

10,744 9,094

37,607

29,410

4Q10 4Q11 FY10 FY11

Stock OptionsStock Futures


Revenues 5,394 6,670 -19.1% 23,601 26,266 -10.1%

Expenses (2,768) (2,781) -0.5% (11,216) (10,849) 3.4%

EBITDA 2,626 3,889 -32.5% 12,385 15,417 -19.7%

17

1,433723 801 952

540 611

6,281

3,5793,072

5,281

3,100

2,199


IT & Consulting

Record levels in revenues4Q10 1Q11 2Q11 3Q11 4Q11

In the VT network, turnover channelled in 2011 increased 29.8% yoy

Positive performance in 2011 for financial messaging services, proximity and consultancy

National and international orders channelled to SIBE through Visual Trader (Million)


Revenues 4,724 4,280 10.4% 16,712 14,440 15.7%

Expenses (2,642) (2,520) 4.8% (10,512) (10,269) 2.4%

EBITDA 2,082 1,760 18.3% 6,200 4,171 48.6%

18

16.124.0 22.6

40.127.2


Historical high in fixed income turnover: €5.60 trillion

Fixed income

4Q10Commercial paper MBS & ABSCorporate bonds Preferred securities

1Q11 2Q11 3Q11 4Q11

1,4741,827

1,202 1,190 1,226

AIAF – Turnover (Billion €)


Revenues 1,697 1,783 -4.8 8,030 7,487 7.3%

Expenses (710) (698) 1.7% (2,935) (2,691) 9.1%

EBITDA 987 1,085 -9.0% 5,095 4,796 6.2%

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Breakdown by business areas

RevenuesRevenuesRevenues EBITDAEBITDAEBITDA

Thousands of € FY2011 FY2010 % FY2011 FY2010 %

Equity Market 133,305 138,026 -3.4% 100,921 105,831 -4.6%

Clearing & Settlement 78,856 75,275 4.8% 64,542 61,343 5.2%

Listing 24,281 22,890 6.1% 14,904 12,799 16.4%

Market Data & Information 33,386 31,197 7.0% 26,296 24,742 6.3%

Derivatives 23,601 26,266 -10.1% 12,385 15,417 -19.7%

IT & Consulting 16,712 14,440 15.7% 6,200 4,171 48.6%

Fixed income 8,030 7,487 7.3% 5,095 4,796 6.2%

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Results

Business Overview

Financials

Business Drivers

IndexA

B

C

D

21


Balance sheetThousands of € 2011 2010

Goodwill 82,190 80,619

Other non-current assets 78,214 89,372

Cash and cash equivalents 301,336 319,783

Non-Group current financial assets 30,370,762 30,833,401

Other current assets 87,981 65,368

Total assets 31,280,483 31,388,543

Equity 438,284 448,429

Non-current liabilities 16,957 14,198

Current liabilities 30,825,242 30,925,916

Total equity and liabilities 31,280,483 31,388,543

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as of December, 31st

(Thousands of €)


P/L


Revenues 76,889 81,507 -5.7% 321,395 326,249 -1.5%

Expenses (24,322) (25,544) -4.8% (98,337) (103,199) -4.7%

EBITDA 52,567 55,963 -6.1% 223,058 223,050 0.0%

EBIT 49,972 53,924 -7.3% 214,685 214,997 -0.1%

Financial Results 1,444 1,432 0.8% 4,774 3,039 57.1%

EBT 51,275 54,475 -6.3% 219,087 217,071 0.9%

Net profit 36,688 37,558 -2.3% 155,115 154,152 0.6%

23


Comparison with FY10Revenues FY2011/2010 Costs FY2011/2010

[€ Mill.] [€ Mill.]

MarginsEBITDA FY 2011/2010 [€ Mill.] Net Profit FY 2011/2010 [€ Mill.]

FY2011 FY2010

-1.5%

FY2011 FY2010

-4.7%

FY2011 FY2010

+0.0%

FY2011 FY2010

+0.6%

24

326.2321.4 103.298.3

223.1223.1 154.2155.1


Efficiency & ProfitabilityROE Evolution EBIT/Revenues Ratio Evolution

4Q11 4Q10 FY11 FY10 4Q11 4Q10 FY11 FY10

% ROE % EBIT/Revenues

Cost/EBIT Ratio Evolution Efficiency Ratio Evolution

4Q11 4Q10 FY11 FY10 4Q11 4Q10 FY11 FY10

% Cost/EBIT % Efficiency

25

33.1% 33.2% 35.1% 34.3%

48.7% 47.4% 45.8% 48.0%31.6% 31.3% 30.6% 31.6%

65.0% 66.2% 66.8% 65.9%


Results

Business Overview

Financials

Business Drivers

IndexA

B

C

D

26


Business drivers: Highly liquid market 2011 Daily avg. 2011

RK Company Turnover(Billion €)

Turnover(Billion €)

Relative weight atEuroStoxx50 (%)1

1 Telefónica 214.3 0.83 3.981%

2 Santander 193.6 0.75 3.758%

3 Unicredit 145.1 0.58

4 Siemens 131.2 0.51 4.766%

5 ENI 119.7 0.47 3.167%

6 BBVA 117.8 0.46 2.408%

7 Deutsche Bank 112.6 0.44 2.050%

8 Total 109.8 0.43 6.553%

9 BNP Paribas 107.0 0.41 2.262%

10 Daimler 106.4 0.41 2.260%

14 Repsol YPF 92.0 0.36 1.451%

28 Iberdrola 57.7 0.22 1.324%

39 Inditex 40.8 0.16 1.002%

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

27

Source: Bloomberg 1(As of 31/12/2011)

0.792%


17%

15%

26%

42%

19%

10%

23%

48%

Diversified market

2009 1H11

Source: Interim Reports from listed companies obtained from CNMV

Rest EUOCDE Spain

52%58%

Distribution by markets of business volume of the IBEX 35® companies(2009 – 1H11)

28


Key ratios benchmarkingEfficiency ROE

"BME Average PeerGroup

- BME´s data as of 31/12/2011

- Average peer Group figures are calculated using last results published and not taking account of goodwill impairment charges

"BME Average PeerGroup

29

30.6%44.7%

35.1%17.9%


Solid operating leverage

78%90%

106% 109% 105% 103%112%

2005 2006 2007 2008 2009 2010 2011

Revenues RatioCosts Revenues not linked to volumes

30


Value generation projects

31

Developments all along the value chain

MAB London Hubs Regis-TR Taylored Feeds

ETFs SEND LinkUp Markets BME Clima

BME Innova New SIBE CCP Equity Open Finance

InResearch Funds Platform Meff Energy Indexes

Proximity & Colocation

Listing Trading Clearing & Settlement Information


Q&A

32

Febrero 2012Evolución de los negocios: Primer trimestre 2012BOLSAS Y MERCADOS ESPAÑOLES

BOLSAS Y MERCADOS ESPAÑOLES

presentation bme 2011 financial results

Economy & Finance

business performance

disclaimerthis information

net prot growth

resultsnet prot million4q10

resultsnet prot million1h10

shares bill

fy2011 fy2010

number of trades