spain investors day presentation jan 2014

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January 2014

BME Spain Investor Day Presentation – 15th January 2014

BME Presentation

Spain Investor Day Presentation

15th January 2014

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January 2014


Disclaimer

THIS INFORMATION IS STRICTLY CONFIDENTIAL AND IS BEING FURNISHED TO YOU SOLELY FOR YOUR INFORMATION. IT MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON, AND IT MAY NOT BE PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. BY RECEIVING THIS INFORMATION, YOU BECOME BOUND BY THE ABOVE-REFERRED CONFIDENTIALITY OBLIGATION. FAILURE TO COMPLY WITH SUCH CONFIDENTIALITY OBLIGATION MAY RESULT IN CIVIL, ADMINISTRATIVE OR CRIMINAL LIABILITIES.

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THIS INFORMATION DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR SOLICITATION OF ANY OFFER TO BUY ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT TO PURCHASE SHARES.

THE INFORMATION CONTAINED IN THIS DOCUMENT HAS BEEN PROVIDED BY BME.

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January 2014


Index

1. 2013 Overview

2. 2014 Business trends and drivers

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January 2014


2013 Overview• 2013, a year gradually turning to positive in prices and volumes

• Corporate Spain re-rate based on Improvement of economic macro-scenario and risk perception. Getting back the attention of segments of trading that were in very low levels.

• Gradual recovery of the short selling ban, accelerating after the summer.

• 2013 Remarkable performance in prices and turnover of SMCs (+48.5%, +65% 4Q13 vs. 4Q12, respectively).

• 4Q13 increased 34.0% in turnover and 53.1% in number of trades compared to average 4Q12-3Q13.

4Q12 1Q13 2Q13 3Q13 4Q13

90

100

110

120

130

140

150

160

€M

illio

n &

Num

ber

of tr

ades

(da

ily a

vera

ge)

Ba

se

in

de

x p

oin

ts l

eve

l 1

00

at

20

13

/12

/16

Turnover Trades IBEX 35 Ibex Midcap Ibex Small Cap

+21.4%

+52.0%

+44.3%

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January 2014


2.106 4.0418.865 9.500

5.657

9.920 5.970

4.626

11.463

6.384

5.334 9.760

18.014

15.089

2009 2010 2011 2012 2013 (*)

12,041

17,36019,771

31,505

36,052

2013 Overview• Increasing number of companies using the market to diversify financing and deleverage

(*) Data from Jan/13 to Nov/13

2013´Capital increases Value (EUROm). Historical Record for 2nd year in a row

+ 14.4%• During the crisis companies needed alternative sources of financing to banking credit. Market has played the role: €132 bn. Inflows to the Exchange in the last 5 years.

• 9.5 €bn. Market cap raised in 2013 through scrip dividends (+7,2% yoy).

• More than 100 capital increase operations with rights subscription in 2013 (+147,8%).

Source: BME´s Fact Book 2013

Subscription rights Other capital increasesScrip dividends

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January 2014


1,248,706

1,119,338

975,600

644,185

9,267,901

9,723,033

544,739

4,067,759

1,339,404

Equity (Jan-Nov)

Turnover (€ Million) 2013

1,244,637

1,179,243

1,006,563

642,554

9,164,558

9,261,742

519,651

1,800,372

1,150,180

2012

+0.3%

-5.1%

-3.1%

+0.3%

+1.1%

+5.0%

+4.8%

+125.9%

+16.5%

2013 Overview

Var (%) 2013 2012 Var (%)

Source: Company data and WFE Statistics

Derivatives (Jan-Nov)

Contracts (Million)

2,931.7

1,092.8

923.9

957.0

389.5

1,441.0

879.9

52.3

2,697.1

1,055.7

894.3

910.0

345.8

1,556.1

889.5

60.2

+8.7%

+3.5%

+3.2%

+5.2%

+12.6%

-7,4%

-1,1%

-19,8%

Global trading improving. Average volumes: Equity +10%, Derivatives +3%

• Markets volume summary

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January 2014


2013 Overview

31.0 30.433.0

39.0

33.1

3Q12 4Q12 1Q13 2Q13 3Q13

Net profit increase of 6.8% compared to 3Q12

+6.8% (€ Million)

• Financials (9M13). Net Profit

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January 2014


• Limited goodwill and a positive impairment test

• No debt, optionality for leverage

• Liquid position

2013 Overview

as of September, 30th (Thousands of €)

2013 2012

Goodwill 82,190 82,190

Other non-current assets 83,552 85,757

Cash and cash equivalents 243,088 321,108

Non-Group current financial assets 36,160,066 36,065,664

Other current assets 91,728 40,864

Total assets 36,660,624 36,595,583

Owners' Equity 403,610 431,721

External Partners 161 0

Non-current liabilities 18,628 18,605

Current liabilities 36,238,225 36,145,257

Total equity and liabilities 36,660,624 36,595,583

• Financials (9M13). Balance sheet

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January 2014


2013 Overview

EBITDA

Thousands of € 3Q 2013 3Q 2012 % 9M 2013 9M 2012 %

Equity 21,453 18,232 17.7% 59,866 62,125 -3.6%

Clearing & Settlement 15,098 15,340 -1.6% 51,631 49,511 4.3%

Listing 2,560 2,453 4.4% 8,040 9,290 -13.5%

Information 6,318 6,723 -6.0% 19,036 20,583 -7.5%

Derivatives 3,752 3,690 1.7% 11,710 10,486 11.7%

Consulting & IT 1,547 1,310 18.1% 5,829 4,307 35.3%

Fixed income 1,148 1,080 6.3% 4,213 4,861 -13.3%

Equity 37.3%

Clearing & Settlement

32.2%

Listing 5.0%

Information 11.9%

Derivatives 7.3%

Fixed Income 2.6%

IT & Consulting

3.6%

• Financials (9M13). Business Areas

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January 2014


Listing

Trading


Market DataIT &

Consulting

2014 Business trends and drivers

BME

• BME covers all services and products for the investment community regarded Spanish securities.

• BME Clearing House integration in the value chain to offer clearing services for the Spanish Securities market.

• BME. Expanding services & value chain

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January 2014



Shares

ETFsREITs (SOCIMIs)

Co-location

Warrants

MAB Growth

SICAVs

Equity

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

• Quality of spreads and best market impact for Spanish stocks. IBEX 35® average spread has improved 7.0 bps since September 2012, moving from 0.132% to 0.062%.

• +52% ETFs turnover increase in 2013.

• SICAVs market cap increase of 25% YTD.

• Trading service improvement through co-location services and platforms development.

• Expanding services. Equity

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January 2014



CSD -Depositary

Fees


Collateral Mgmnt.

Services to issuersRegis TR®

DefaultMgmnt. Service

Clearing&

Settlement

• Clearing House set-up according to EMIR requirements.

• Pan-European service for OTC derivatives trade repository starting in February 2014.

• Collateral management service towards optimisation of the movements in collateral of members.

• European Regulation towards transparency and risk control opening business opportunities in Clearing and Settlement.

• Expanding services. Clearing & Settlement

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January 2014



Corp. FI Inst.-AIAF

Corp. FI Retail-SEND

Public FI Retail-SEND

MARF

Public FI Inst.-SENAF

Fixed Income(FI)

• New segments and assets in trading to compensate the general deleverage process in Spain.

• Enforcement of regulation as condition for movement of OTC trading to electronic order books.

• Expanding services. Fixed Income

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January 2014



Primary Sources

S/MART platformOpen Finance -

Front-office

Indices

Relevant Events feed

Edata Services

Market Data

• Global trend of direct connections in market data primary source. The new connections expanded 7.4% the client base in the third quarter, raising the total number of clients to a new all-time high.

• Eight new indices were put in place in 2013 as underlying assets for ETFs and structured products. A total of 31 indices are calculated and disseminated at present.

• Relevant events market data feed to be in place during 2014.

• Expanding services. Market Data

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January 2014



BME Highway

BME Confidence-

NetBME-

AlternativeHosting

BME InCloud & Combo

BME Consulting

VMaX

Visual Trader Proximity

IT & Consulting

• Expanding services. IT & Consulting

• IT & Consulting business unit is responsible for the diversification of the Group in activities which are ancillary to its core business.

• Widening the range of products and services using installed capacity are the reasons for the increase in EBITDA contribution of the business unit from 2% to 3.6%.

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January 2014


Volume Revenu

e Engine

2014 Business trends and drivers• Adding products and services for value creation in the business model

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January 2014


2014 Business trends and drivers• Regulation. Overview of main regulatory changes in process as structural driver for the

business

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January 2014


2014 Business trends and drivers• Focus of management focus in efficiency, operating leverage and shareholder

remuneration

32.9%

48.8%

BME Average PeerGroup

Efficiency

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January 2014


Costs Revenues Revenues not linked to volumes Ratio

78%

105%114%

2005 2009 9M 2013

Operating leverage


remuneration

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January 2014


Remuneration to shareholders


remuneration

0,40 0,40 0,40 0,40 0,40

0,60 0,60 0,60 0,60 0,60

0,60 0,60 0,60 0,60

0,372 0,372 0,372 0,372

2009 2010 2011 2012 2013First Interim Dividend Second Interim Dividend Suplementary Dividend Extraordinary Dividend

Pay Out ratioTotal Dividend/Share 1,972 1,9721,972 1,972

86%89% 86% 98%

spain investors day presentation jan 2014

Economy & Finance

volumes corporate spain

overview financials

clearing services

drivers bme

business trends

colocation services

etfs turnover increase

sicavs market cap