March2013

ForwardLookingStatements

Thispresentationmaycontaincertainstatementsthatexpressthemanagementsexpectations,beliefsand
assumptionsaboutfutureeventsorresults.Suchstatementsarenothistoricalfact,beingbasedoncurrently
availablecompetitive,financialandeconomicdata,andoncurrentprojectionsabouttheindustriesBM&FBovespa
worksin.
Theverbsanticipate,believe,estimate,expect,forecast,plan,predict,project,targetandother
similarverbsareintendedtoidentifytheseforwardlookingstatements,whichinvolverisksanduncertaintiesthat
couldcauseactualresultstodiffermateriallyfromthoseprojectedinthispresentationanddonotguaranteeany
futureBM&FBovespaperformance.
Thefactorsthatmightaffectperformanceinclude,butarenotlimitedto:(i)marketacceptanceofBM&FBOVESPA
services;(ii)volatilityrelatedto(a)theBrazilianeconomyandsecuritiesmarketsand(b)thehighlycompetitive
industriesBM&FBovespaoperatesin;(iii)changesin(a)domesticandforeignlegislationandtaxationand(b)
governmentpoliciesrelatedtothefinancialandsecuritiesmarkets;(iv)increasingcompetitionfromnewentrants
totheBrazilianmarkets;(v)abilitytokeepupwithrapidchangesintechnologicalenvironment,includingthe
implementationofenhancedfunctionalitydemandedbyBM&FBovespacustomers;(vi)abilitytomaintainan
ongoingprocessforintroducingcompetitivenewproductsandservices,whilemaintainingthecompetitivenessof
existingones;(vii)abilitytoattractnewcustomersindomesticandforeignjurisdictions;(viii)abilitytoexpandthe
offerofBM&FBovespaproductsinforeignjurisdictions.
Allforwardlookingstatementsinthispresentationarebasedoninformationanddataavailableasofthedatethey
weremade,andBM&FBovespaundertakesnoobligationtoupdatetheminlightofnewinformationorfuture
development.
Thispresentationdoesnotconstituteanoffertosellorthesolicitationofanoffertobuyanysecurities,norshall
therebeanysaleofsecuritieswheresuchofferorsalewouldbeunlawfulpriortoregistrationorqualification
underthesecuritieslaw.Noofferingshallbemadeexceptbymeansofaprospectusmeetingtherequirementsof
theBrazilianSecuritiesCommissionCVMInstruction400of2003,asamended.
2

BVMFSTOCKPRICE
Recent Performance
RecentPerformance

BVMF3 Recentperformance

IOFs
BVMF3YTD:4.2%
10/17
R$14 97
R$14.97
IbovespaYTD:5.8%
Goodwill
11/30 Competition
R$13.01 News
0 /05
01/05
R$13.10 ReductionsofVolumes
EstimatesbytheMarket Removalof
IOFonEquities
12/01
R$10,54
Rumors
aboutIOF

Feb13

Jan1
13

12
Dec1

Nov12

12
Oct1

Sep12

Aug1
12

Jul1
12

Jun1
12

May1
12

Apr1
12

Mar1
12

Feb12

Jan1
12

11
Dec1

Nov11

11
Oct1

Sep11

BM&FBOVESPA

Updateduntil02/28/2013.

Oxera's
' Report
Release
06/18

DirectEdge
11/21
R$10.11
Aug1
11

Jul1
11

Jun1
11

May1
11

Apr1
11

11
Mar1

Feb11

Jan1
11

10
Dec1

Nov10

10
Oct1

Sep10

Aug1
10

ExchangesMergers BATs
02/15
02/08
R$11.43NewIOFon
R$11.18
Derivatives
07/26
R$9.55

ChangeofIOF
onforeign
exchange
transactions
06/14

IBOVESPA

BRAZILIANMARKETOPPORTUNITIES

EquityMarket(BOVESPASegment)
LowpenetrationintheBrazilianmarket
Clients base: huge potential in retail and pension funds segments
Clientsbase:hugepotentialinretailandpensionfundssegments
Numberofcustodyaccounts(thousands)

Pensionfundsportfolio
Lowpenetrationofequity
andderivativesinthemain
and
derivatives in the main
investorsportfolios
Stableandlowinterest
rateenvironmentencourage
moreexposureinequities
i
iti
Recentgrowthinthenumber
ofretailinvestors,butstill
lowcomparedtoother
markets

R$574billion
$

Equity
FixedIncomeandOthers
69.9%
R$168billion
72.3%

30.1%

27.7%
2002

2011

ListedCompanies
Dec12 Listed Companies
Dec12ListedCompanies

Lownumberoflistedcompaniescomparedto
othercountries

6,856

Lackofimportanteconomicsectorsinthe
exchange for instance: oil & gas infrastructure
exchange,forinstance:oil&gas,infrastructure,
retail,ITandpharmaceutical,

4 916
4,916
4,041

3,972

3,481

3,200

2,767

2,056

1,784
364

India

USA

China/
HK

Canada

Japan

Source:ABRAPP,WFEandBM&FBOVESPA

Spain

UK

Australia

Korea

Brazil

Investmentcyclemaybringnewcompaniesand
sectorstotheexchange
Currently,SMEsarenotabletoraisemoney
throughequityeasily
6

DerivativesMarket(BM&FSegment)
Growthincreditlevelwillfavorvolumes
Credit: very low credit level and even lower in the case of mortgage transactions
Credit:verylowcreditlevelandevenlowerinthecaseofmortgagetransactions
TradeFlow(totalImports+ExportsinUSDbillions)

CredittoGDP
Mortgage

53.5%

TotalCredit

281

466
466

2011

2012

384

371

27.4%

482

281

229

6.3%

Jan01
Jul01
Jan02
Jul02
Jan03
Jul03
Jan04
Jul04
Jan05
Jul05
Jan06
Jul06
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
Jul12

4.5%

2006

2007

2008

2009

2010

InterestRateinBRLcontracts:growthincreditlevels,speciallyinfixedrates,supportincreasetheactivityof
financial institutions
financialinstitutions
FXcontracts:growthintheamountofforeigntradingandchangeinthecultureofhedgingfromentrepreneurscan
pushupvolumesinthisgroupofcontracts,mainlyincurrenciesotherthanUS$
Indexbasedcontracts:growthincashequitymarket,thelaunchinganddevelopmentofETFsandthegrowthof
exposuretoequitybyinstitutionalinvestorscandrivethegrowthofthesecontracts
Commoditiescontracts:cashsettledcontractsandthechangeinthebehavioroffarmersthatarebecomingmore
sophisticated
7

MAININITIATIVES

HighGrowthProducts
Growingsophisticationofmarketparticipants
Initiatives todevelopandincentivizevolumegrowthinsomeproducts;
Performanceshowsthattheinitiativesarebeingwellreceivedbythemarket.
p
OptionsMarket
(ADTVinR$millions)

RealEstateFunds(FIIs)
( )

SecuritiesLendingg

(ADTVinR$millions)

(OpenInterest averagefortheperiodinR$
billions)

+49.8%

73.1

39.1

48.8

ADTVbefore
MarketMaker

CAGR (09-13): +35.2%

CAGR(09-13): +154.6%

ADTVafter
MarketMaker*

09
0.9

15
1.5

2009

2010

3.7
2011

14 6
14.6
2012

12 7
12.7

2013*

2009

20.5
2010

30.2

31.9

2011

2012

ETFs

Tesouro Direto

AgribusinessCreditBill

(ADTVinR$millions)

(Custody inR$billions)

(Volumeregistered inR$billions)

CAGR(0913):+50.5%

115.9

18.6

28 5
28.5

2009

2010

48.7
2011

2012

9.0

2013*

2.9

3.9

2009

2010

*YDT2013 Updateduntil02/28/2013,exceptTesouroDireto(until01/31/2013).

2013*

62%ofAUMofmarketshareregisters
areatBM&FBOVESPA(Dec12).

CAGR(0913):+35.8%

95.6

42.5

9.9

20.0

6.1
36
3.6

2011

2012

2013*

2011

2012

StrategicProjects
Multiassettradingplatform(PUMATradingSystem)
Stateoftheartintradingtechnologyandtechnologicalindependency
Derivativesmodulesuccessfullyimplementedin2H11
Equitiesmarkettobeconcludedin1Q13
LicensingTRADExpress RealTimeClearingsystem
Objective:integratingandmodernizingourexistingclearingfacilitiesshouldproceedover2013.
Integrated tests with the market and implementation of the systems scheduled to take place in 2013/2014
Partnership advantages:
License
Li
t use the
to
th software
ft
Access to the source code
Selling rights over our new clearing platform
RegistrationsystemsforOTCderivatives
Objective: modernize,improveandexpandtherangeofourregistrationservicesforOTC
derivatives,whileofferingourcustomersastreamlined,qualitysolutionandthorough
regulatory reporting tool
regulatoryreportingtool
Oneofthemostflexibleandcompleteenginesforregistration,pricediscovery,risk
assessment,captureandlifecycleprocessingofthesetransactions
Threemoduleimplementation:thefirstoneisscheduleto1H13,thesecondonefor
2H13

10

ClearingHouses Integration
FurtherdifferentiationinBVMFposttrade

Derivatives
(R$ 94 bn*))
(R$94bn
Financialand
commodities derivatives
commoditiesderivatives
(futures,options and
forward)
OTCderivatives

Equityandcorporate
debt (R$ 78 bn*))
debt(R$78bn

FX
(R$ 4 b *)
(R$4bn*)

Equity,ETFs and fixed

income cash market

FXspotmarket

Equity and indices

derivatives (options and
forward)

(US$vs.R$)

Securities
(R$ 1 b *)
(R$1bn*)
Cash market and
f
forward
d market
k t for
f
government bonds

Securities lending

INTEGRATEDCLEARINGHOUSE**

Capitalefficiency

*AggregateofpledgedcollateralsatourclearinghousestotaledR$176,481.9millionin12/31/2012.**IPN/COREimplementation requirestheauthorizationoftheregulators.

11

MainProjects
Deliveriesmadeandprogrammed

INTENSEDELIVERYPHASE

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

(...)

Migrationof
PUMATrading
System
System
(equities)

Securities
Registration
Platform

Fixedincome
trading
platform
OTCDerivatives
Platform(Calypso)

Newintegratedclearinghouse/CORE*

NewDataCenterConstruction

Startofmigration to the
NewDataCenter

(...)

Feestructureredesignandtheintroductionofincentiveprograms

(...)

( )
(...)

Developmentofnewproducts/markets:ETFs,marketmakingprogramsfortheoptionsmarket;duallistings
/

( )
(...)

*IPN/COREimplementationrequirestheauthorizationoftheregulators.

12

BUSINESSMODELANDREGULATORY
FRAMEWORK

13

PossibleCompetition
Importantconsiderations
EASINGREGULATIONISNOTEXPECTED
Mainrequirements:pretradecontrols,selfregulatory(SRO),offexchangetradesarenotpermitted(internalization
ofordersandOTC),CCPforstockstrading,posttradingatthebeneficialownerlevel
Competitioninotherexchangeswasintensifiedaftereasingregulation
THEEXCHANGEFEES(TRADINGANDPOSTTRADING)AREPAIDBYTHEFINALINVESTOR
DifferentlyfromUSAandEurope,thefinalinvestorsistheonewhopaystheexchangefees
Brokerscouldntincreasetheirshareintheallintradingcostpieincaseofreductionontheexchangefees
STOCKSTRADINGALLINCOSTINBVMFISCOMPETITIVE
Comparingonlythetradingfeesamongexchangesismisleading.BVMFprovideshigherportionofservicesthanthe
peers
Despitethemisleadingperception,all
Despite the misleading perception allin
incostinBVMFiscompetitivecomparedtoothermarkets
cost in BVMF is competitive compared to other markets
ITINFRASTRUCTUREMOVINGTOSTATEOFTHEART
There is no gap of IT infrastructure
ThereisnogapofITinfrastructure
IncreasingparticipationofHFTviaColocation(movingtosubmillisecondlatency)
RECENT BM&FBOVESPA INITIATIVES (REBALANCING OF FEES STRUCTURE)
RECENTBM&FBOVESPAINITIATIVES(REBALANCINGOFFEESSTRUCTURE)
Shiftbetweentradingandposttradingfees
14

PanelsponsoredbyCVM
Mainpoints

OnJune29,CVMsponsoredadiscussionwithstakeholders
Regulator:thestudyshowsthatcompetitioninexchangeindustryisnoturgent
Participantsview
9Regulator:marketintegrityandtransparencyarepriorities
9Brokers:mostofthemhavedoubtsaboutthebenefitsandshowedconcernsrelatedtocostrising
g
forthemandrisksforthemarket
9Investors:ingeneralhaveaperceptionthatpricesareinlinewithinternationalbenchmarksandare
concernedwithmarketintegrity
9Infrastructureproviders(exchanges):nonconsensusregardingthenecessityofopeningtheclearing
houseornotinordertocreatetheconditionsforcompetition
BVMFsmainconsiderations:
9UnderstatesregulatoryandIT/infrastructurecostforbrokers
9Disregardsimplicitcostsofliquidityfragmentationanddoesnotassessqualitativelytheprice
formationimpacts
9ComparesinadequatelytheothermarketcostswhenitdoesnotusetheAllincost
9Marketsizeisnotbigenoughtoembracenewexchanges
g
g
g
9Recognizestheimportanceofclearinghousesintegration
15

EquityMarketSettlementStructure
BrazilComparedtoUSA
BRAZIL

USA

(Allthetradesmustbematchedonan
exchangeenvironment)

(Brokerscaninternalizeorders)
TradingVenues

Trading

BVMF

BVMF

DTCC

Brokers
AandB

Brokers
AandB
Broker
A

Post trading
Posttrading
Clearing(CCP)
Settlement
CentralDepository

Investors

Investors

Investors

Broker
B

Investors

100%verticallyintegrated:clearing,settlement and
centraldepositoryatthebeneficialownerlevel

DTCCdoestheclearing,settlement andcentral
depositoryofsecuritiesatthebrokerslevel

Brokerscontroltheirclientsportfoliosandsettle
positionsthroughBVMFsinfrastructure (this
impactstheposttradefeeschargedbyBVMF)

Eachbroker(primebroker)hasitsownstructureto
controltheirclientsportfoliosandsettlepositions
(thisimpact theprimebrokerscosts)

16

BusinessModel
Li t d E h
ListedExchangeBusinessModel
B i
M d l
DiversifiedandIntegrated

DiversifiedbutNotIntegrated*

IntegratedDerivatives

*Donotprovideposttradingservicesfortheequitymarket

MarketCapitalization(US$billions)andOperatingMargin(%)
3rd
largest
exchange
70.7%
58.1%

63.0%

72.4%
56.6%

60.7%

56.2%

66.6%
53.5%
41.5%

20.7

HKEx

19.9

CME

26.2%

13.5
BVMF

12.0
Deutsche
Boerse

Diversified andintegrated

11.2
ICE

9.1

6.6

6.5

5.5

5.2

NyseEuronext

SGX

ASX

LSE

Nasdaq

Integrated(Derivatives)Diversified butnotintegrated

12MtoJun.30,2012.12MtoMar.31,2012.9MtoSep.30,2012.Source:Bloomberg(02/28/2013).

34 9%
34.9%

2.9
TMX

2.2
BME

Oper.Margin(2012)

17

BrazilianMarketRegulatoryFramework
Legalrequirements:resilience,transparence,clearrules.
Brokers&
investors

Regulationprohibits internalizationoforders,darkpools
andATS/MTFs,stockstradinginbothexchangeandOTC
simultaneously
Settlementandclearingofstockstradingmustbedone
through a CCP
throughaCCP
Settlementandclearingatthebeneficialownerlevel
maketheBrazilianmarketsaferandmoreresilient

Trading

Undertheregulationinplace,potentialcompetitors
wouldbeobligedtoprovidethesameintegrated
solution, with the same rules and transparency
solution,withthesamerulesandtransparency
Thefinalinvestorpaystheexchangefee

PosTrading

g
g
g
Otherexchangeshavebeenseekingintegratedmodels
(selfclearingmodels)
Nakedaccessisnotallowed
Nakedshortsellingisnotpossible
18

Braziliansstocktradingbreakdown
EndofCPMF
(Financial
TransactionTax)

NovoMercado
Launching
(Dec.2000)

EndofIOFTax(2%)for
foreigninvestors
(Dec.2011)

SarbanesOxleyAct
(Jul.2002)

F b13
Feb13
25.2%

33.1%
7 9%
7.9%

37.7%

OtherUSAVenues BrazilianADRs
BM&FBOVESPA companieswithADRs

NYSE BrazilianADRs
BM&FBOVESPA(exceptcompanieswithADRs)

Feb13

Jan13

Dec12

Nov12

Oct12

Sep12

Aug12

Jul12

Jun12

May12

Apr12

Mar12

Feb12

Jan12

2011

2010

2009

2008

2007

2006

2005

4
2004

2003

2002

2001

2000

1999

1998

1997

1996

29.2%

66.9%

Source:Bloomberg(inUSD
tradedvalueof35companies
withADRsprograms)

Public Offerings in Number of Companies*

PublicOfferingsinNumberofCompanies*
IPOs
Followons
Total

2001

14
14
14

2002
1
5
6
6

2003

8
8
8

2004
7
8
15
15

2005
9
10
19
19

2006
26
16
42
42

2007
64
12
76
76

2008
4
8
12
12

2009
6
18
24
24

2010
11
11
22
22

DualListings
*Updateduntil02/08/2013.

2011
11
11
22
22

2012
3
9
12
12

2013
1
1
2
2

Total
143
131
274
274
5
19

OPERATIONALHIGHLIGHTS

20

BOVESPASegment:operationalhighlights
Average Daily Traded Value ADTV(BRLbillions)
AverageDailyTradedValue
ADTV (BRL billions)

Averageannualmarketcap(R$trillion)

TurnoverVelocity**(12monthsaverage)

*
*Updateduntil02/28/2013.**Relationofthetradingvalueinthecashmarketandthemarketcapoftheexchange.

21

BOVESPASegment:capitalraisingactivity
PublicOfferings(BRLbillions)
Updateduntil02/28/2013.

F ll
FollowOn
O

74.4

70.1

11.2

IPO

46.0
30.4

8.8
4.5 4.3

2004

13.9

55.6

34.3
7.5

5.4
8.5

15.4
15.1

14.5

2005

2006

2007

23 8
23.8

26.8

22.2

2008

2009

63.2

2010*
2010

18.0

13.2

7.2
10.8

3.9

2011

2012

9.3

1.3

0.5 0.8

2013

Pipeline:alreadyannouncedtothemarket
Thereare8offeringsinthepipeline:
IPO(6):AutoBrasil Participaes;Cia.EstadualdeguasEsgotos CEDAE;BioServ;Smiles;BBSeguridade
Participaes;Alupar Investimento
Followons (2):Tupy;Multiplan

Additionaly,there are16RealEstate Funds filed inCVM:estimated value of R$3.4billion

* Excludes the capitalization with barrels reserves by federal government BRL74.8 billion in Petrobras offering.

22
22

BOVESPASegment
Potentialtoincreasethenumberoflistedcompanies
Market Capitalization to GDP (%)*
MarketCapitalizationtoGDP(%)*
2009

177%
174%

138%
129%

136%

137%
126%

121%

119%
109% 109%
104%

110%

129%
107%
100%
87%
67%

Canada

Chile

USA

100%

96%
89%

Singapore

2011

HongKong: 438%481%365%

158%
129%

2010

Korea

Australia

75% 76%

75%
60%

Japan

87%

80%

72% 72%
57%

55%

France

India

50%

Brazil

49%

UK

Market Capitalization by Economic Sector

MarketCapitalizationbyEconomicSector

46%

China

39%

44%
35%

Mexico
*Source:WorldBank

Dec12

Dec05

11.2%

15.7%
22.4%

26.8%
14.3%
21.6%

11.5%

2.2%
8.8%

8.6%
11.1%
0.3%
2 6%
2.6%

Oil,GasandBiofuels
ConsumerNonCyclical
PublicUtilities

5 1%
5.1%
20.4%

2.5%
3.6%

5.5%

0.4%
5.4%

BasicMaterials
ConsumerCyclical
Financial

CapitalGoodsandServices
Information Technology

ConstructionandTransportation
Telecommunications

23

BM&FSegment:operationalhighlights
Average Daily Traded Volume ADV(Thousandsofcontracts)
AverageDailyTradedVolume
ADV (Thousands of contracts)

3,518
2,505 2,701

805 852

1,167

187
86
110
422

109
74
168
501

124
68
266
711

2004

2005

2006

1,740 1,573 1,521

167
112
473

162
88
535

150
80
447

988

789

843

2007

2008

2009

191
89
541

285
123
496

2,899 2,955
336
336
143
494

314
314
104
483

2,994
2,497
334
166
545

285
285
123
123
524

2,061

308
205
509
509

3,904
385
245
593

3,591
2,590
350
158
520

2,497 2,681

2,819 2,630 2,626 2,971 2,653 2,856

322
322
340 2,410
340
362
106
485

345
137
425

355
111
451

123
327

331
99
476

113
547

341
126
494

290
84
474

2,199
1,747 1,856 1,561
1,561 1,866 1,723 1,710

2,630

2,054
1,684 1,797 1,926

1,452

2010

Feb12 Mar12 Apr12 May12 Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13 Feb13

2011

2012 2013*

BRLInt.Rate(Thousands)

FX(Thousands)

Index(Thousands)

Others(Thousands)

R t
RateperContract
C t t RPC(BRL)
RPC (BRL)
2006

2007

2008

2009

2010

2011

2012

2013*

F12

M12

A12

M12

J12

J12

A12

S12

O12

N12

D12

J13

F13

InterestratesinBRL

0.906

0.950

1.141

0.979

0.889

0.918

1.004

1.021

1.064

0.926

0.948

0.922

1.059

1.026
1.076 1.130 0.924

1.044

1.037

1.032

1.013

FX rates
FXrates

2 244 1.859
2.244
1 859 2.065
2 065 2.161
2 161 1.928
1 928 1.894
1 894 2.205
2 205 2.339
2 339

1 929 1.876
1.929
1 876 1.991
1 991 2.015
2 015 2.237
2 237 2.325
2 325

2 506
2.506

2 370
2.370

2 453
2.453

2 368 2.305
2.368
2 305

StockIndices

1.419

1.501

2.145

1.620

1.564

1.614

1.524

1.787

1.674

1.328

1.502

1.233

1.708

1.403
1.750 1.407 1.752

1.400

1.981

1.547

1.974

2 453
2.453

2 481
2.481

InterestratesinUSD

1.094 0.965

1.283

1.357

1.142

0.941

1.015

1.106

0.804

0.911

0.991

1.021

0.955

1.143
1.027 1.086 1.024

1.164

1.152

1.073

1.140

Commodities

4.749

3.195

3.587

2.307

2.168

2.029

2.239

2.433

2.033

2.183

2.228

1.945

2.099

2.014
2.270 2.840 2.680

2.485

3.360

2.449

2.415

Minicontracts

0.121
0.034

0.054

0.162

0.176

0.128

0.129

0.116

0.130

0.130

0.122

0.113

0.116

0.111
0.110 0.109 0.112

0.107

0.112

0.120

0.122

OTC

1.571 2.111

2.355
1.655 1.610 1.635 1.769 2.339

1.515 1.822 1.880 1.203

1.321 1.523

TotalRPC
1.247

1.224

1.527

1.365

1.134

1.106

1.191

1.224
Updateduntil02/28/2013.

1.738

1.711

2.475

1.988 2.868

1.227

1.079

1.100

1.074

1.272

1.222
1.277 1.314 1.098

2.693

1.139

1.242

1.303

1.266

1.191

24

InterestRateinBRLContracts
Structuralchangesbehindthegrowthinvolumes
BRLINT.RATE:ADVPERMATURITY(MILLIONSOFCONTRACTS)
Growthininterestratecontracts
with longer maturity
withlongermaturity

1.81

1.66

1.77

CAGR:+3%

1.35

CAGR:+32%
0.76

0.72

0 47
0.47

0 51
0.51

0.91

0.93

0.77

0 87
0.87

CAGR:21%
0.57

0.28

0.38

2008

2009

2010
1st4thMaturity

2011

5thMaturity

Dec'12:
BRL850.9

Dec'12:
BRL 789.3 bn

Jan'05:
BRL 151.4 bn

Jan'05:
BRL180.0

Jan06

Total

PublicDebt/FixedRate inBRLbillions

FixedRateCredit inBRLbillions

Jan05

2012

Jan07

Source:Brazilian CentralBank.

Jan08

Jan09

Jan10

Jan11

Jan12

Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12

25

HighFrequencyTrading(HFT)
BM&FSegment:HFT(ADTVinthousandsofcontracts)andmkt.share

4.2%

6.7%
3.9% 3.6%

222

233

239

51
65
90

50
71
93

49
82
90

274
45
118
102

5.4%

239
42
101
92

7 5%
7.5%

7 3%
7.3%

8.7%
8
%

481

474

300

88

66

49
49
126

162
162

113

203

155
219

8.5%

6.6%

8.9%

6.9%

9.1%
5.9%

5.8%

7 5%
7.5%

5.8%

6.4%

7 2%
7.2%

365

347

358

62
116

56
89

63
71
71

186

202

223

6.3%

5.0%

317

283

6.7%

5.6%

339

304

5.2%

4.1%

528
419
343

61
153
153

50
124

177

142

Mini

417
268

288

42
85

41
88

120

131

FX

191

403

50
141

49

31
59

159

150

146

128

163

Equities

442
73
144
225

Other

56
61

55
55
31

201

197

58
53
53

46
46
55

227

204

237
37
44
156

284
47
47
50
187

%overallvolume

BovespaSegment:HFT(ADVinBRLmillion)andmkt.share
6.6% 5.9% 5.9%

8.7% 7.6% 8.6%

11.5%
5%
11 4% 10.4% 10.3% 11
11.4%
9.3% 8.7% 8.4% 8.4% 9.0% 10.3% 8.8% 10.3% 10.0% 9.1% 10.2% 10.1% 9.4% 10.1% 10.0%
1,683
205

996
996

963
272
346
352

746

785

140
261

210
254

344

321

192
293
511

899

9 4
974

152
253

151
262

495

561

380

1.099

1,296
165
165
311
1,099

ADTV(Foreigners)

1,460
164
281

1,367

1,339

1,366

1,160
,
166 1,145 1,088
166
296
296
372
372
110

259
306
210 303

1.016 1,016

826

785

ADTV(Individuals)

995

854

1.070

1,526

1,517 1,473
278

1,268 1,332
230
227

1,070 1,238

ADTV(Institutionals)

263
263

265

1,243 1,041 1,069

1,363 1,344

1,517 1,489 1,580

387

420

243

246

285

831

884

783

366
366

269
269

212
1,016

365
318

897

%ofoverallmarket

26

FINANCIALHIGHLIGHTS

27

4Q12vs.4Q11Highlights
Volumesgrowthandstrictcostcontrol
FINANCIAL HIGHLIGHTS

OPERATIONALHIGHLIGHTS

Gross Revenue: R$544.1 million, +4.2%

BOVESPASegment:

BOVESPA Seg.:
g R$238.5
$
million,, +6.6%
%

ADTV:+9.4%

BM&F Seg.: R$205.3 million, +15.9%

Margin:stable
BM&FSegment:

Net Revenue: R$499.2 million, +5.9%

ADV: +15.4%
RPC: +4.1%

Adjusted Expenses: R$174.2 million, +6.3%

Highgrowthproducts

2012:R$563.5million(closetothelowrangeofthe
announced guidance)
announcedguidance)

ETFs:+61.9%inaveragedailyvalue

Operating Income: R$243.1 million, +35.4%

Adj. Net Income: R$379.4 million, +7.6%
Adjusted EPS: R$0.196, +7.4%

Tesouro Direto:+38.6%ofassetsundercustody
FIIs:stronggrowthofvolumes(R$29.0million in
4Q12)andnumberofinvestors(97.1thousand)
LCA:consistentgrowthofassetsundercustody
(R$36.5billion)

2012/2013MAINPROJECTS
Clearinghouses Integration3: presentation of IPN to market
PUMA Trading System: progress in delivering the equities module

Payout: recommendationofadistributionof
R$388.7millionin4Q12,totalingR$1,074.3million
in 2012 R$0.56pershare(100%GAAPnet
R$0.56 per share (100% GAAP net
in2012
income)
1

OTC Platform: certification phase with market participant

Pricing Structure: studies regarding pricing differentiation and
incentive programs
New Data Center: construction started

Excludes stock options plan, depreciation, provisions, tax on dividends from CME Group and the guarantee fund transferred to BSM. 2 Excludes deferred liability recognized in correlation with temporary differences
from amortization of goodwill for tax purposes, the impact of the stock options plan, the investment in associate (CME Group) accounted under the equity method of accounting, net of taxes related to dividends,
taxes paid overseas to be compensated, the guarantee fund transferred to BSM in 4Q11 and provision related to health care insurance net of taxes in 4Q12. 3IPN/CORE implementation requires the authorization of
28
the regulators.

RevenueBreakdownin4Q12
Diversifiedrevenuesourcesasadifferential
REVENUEBREAKDOWN

37.6%:CashEquities
8.7%:Trading
28.9%:PostTrading

4.8%:Derivatives on Stocksand Indices

37.0%:Financial/CommodityDerivatives

Gross Revenue:
R$544.1 million

20.6%:OtherRevenues
5.1%:Depository,CustodyandBackOffice
3.4%:SecuritiesLendingg
3.0%:Vendors
2.5%:TradingAccess(Brokers)
2.0%:Listing
4.6%: Others
4.6%:Others

29

FinancialHighlights
Strongcashpositionandhighpayout
ADJUSTEDNETINCOME(4Q12)
(inR$millions)

+7.6%

FINANCIALINCOME
FinancialResultsofR$43.1million,fallof32.7%over
4Q11
FinancialIncomedecreased 23.8%,reflectinglower
interestrates
FinancialExpenseshadaslightly increaseof1.8%

INVESTMENTS
Credits from interest on shareholders equity of R$90 million
deliberated in Nov12 decreased tax charges.

InvestmentsofR$134.2millionin4Q12
In2012,investmentstotaledR$258.4million,withinthe
,
$
,
budgetrangepreviouslyannounced(R$230 260million)

CASHANDFINANCIALINVESTMENTS

InvestmentBudgets:

(inR$millions)

2013:betweenR$260 290million
2014:betweenR$170 200million

PAYOUT
OnFeb.19,2013,theBoardproposedadistribution
On Feb 19 2013 the Board proposed a distribution of
of
R$388.7millionindividendstobepaidinApr. 30,2013.
Thepayoutin2012totaledR$1,074.3million,the
equivalenttoR$0.5565pershareand100%ofGAAPnet
income
income.

*Includesexpenseswithdepreciationandprovisions.**Includescollateralspledgedbyparticipantsintheformofcash,receivablesandrightsinsecuritiesundercustody,aswellaspayoutsstillundisbursed.
***IncludesthirdpartycollateralsandrestrictedfundsatBM&FSettlementBank(BancoBM&F).

30

Cashflow:returntoshareholders
CASHFLOW/USEOFCASHFLOW
IndividualCompanyStatements

(in R$ millions)

2011

2012

Net income
Adjustments non-cash items
Working capital variation
Operating cash flow
Investments ((net of asset sales))
Received dividends
Post-investment cash flow

1,048
469
7
1,524
(210)
33
1,347

1,074
570
60
1,704
(257)
124
1,572

Share buyback program (net of sales)

Dividends and interest on own capital
Interest / change in debt
Cash / financial investments variation
D ti ti off cash
h flow
fl
Destination

590
590
889
69
(200)
3
1,347

(8)
1,148
76
356
2
1,572

Var.
2012/2011

11.8%

16.7%

Does not consider variation in financial investments and collaterals.

31

4Q12Expenses
Focusoncostcontrolandoperationalefficiency

TOTALEXPENSESBREAKDOWN

ADJUSTEDEXPENSES
(in R$ millions)

Expenses:
R$256.0
million
*

AdjustedExpenses: +6.3%vs. 4Q11

AdjustedPersonnel:+5.4%vs.4Q11,basicallyduetothe
effectsofannualunionbargaininAug12
DataProcessing:12%vs.4Q11,duetoexpensesreduction
with IT outsourcing and lower maintenance costs with legacy
withIToutsourcingandlowermaintenancecostswithlegacy
platforms
Marketing:repriorizationofMarketingactions
Others:
Others:reflectsmainly
reflects mainly theR$15milliontransfertoBSM,
the R$15 million transfer to BSM,
announcedin3Q12
*Includes expenses with maintenance in general, taxes adjusted by the dividends
from CME Group, board and committee members compensation and others.

32

OtherExpenses
Extraordinaryexpensesin4Q12
PROVISIONFORPERSONNEL

TAXESANDCONTRIBUTIONS

OTHERS:TRANSFERTOBSM

(inR$millions)

(inR$millions)

(inR$millions)

+34.2%

+5.4%

NoncashprovisionofR$27.5million
relatedtotheCompanyshealthplan;
Theprovisionisrelatedtothepotential
liabilitiesgeneratedbyindirectsubsidies
(differencebetweentheaveragecostof
the plan negotiated by the Company and
theplannegotiatedbytheCompanyand
theestimatedaveragecostto
individuals);
Employeeswho contributedtotheplan
between20022009 have therightto
maintain their status as beneficiary in
maintaintheirstatusasbeneficiaryin
theeventofseveranceorretirement,as
longastheybeartheinsurancecosts;
Theamountprovisionedfollowsthe
CPC33/IAS19 EmployeeBenefits.

IncreaseofTaxonDividendsfrom
theCMEGroup:dividendsreceived
fromtheCMEGroupreached
R$60.7millionin4Q12,versusR$8.9
millionin4Q11.

F
t
th i
k t
Focusonstrengtheningmarket
integrity;
BSM(BM&FBOVESPAMarket
Supervision)actsinmarketsurveillance
g
andselfregulationofallmarkets
managedbyBVMF,pursuanttoCVM
rule461/07;
TransferofR$15milliontoBSM
previouslyannouncedwiththeearnings
lt f 3Q12 d ithi th dj t d
resultsof3Q12andwithintheadjusted
budgetfor2012;
Goal:FundingofBSMsactivitiesover
2013.
33

ADJUSTEDOPEXBUDGET
2013Budget:R$560580million,thesamerangeof2012
Focusoncostcontrol: in2013,inflationarygrowthwillbeneutralizedbyhigher
,
yg
y g
efficiency

ExpensesCAGR(201013):
1.6%pa

<

InflationCAGR(20102013)
5.8%pa

(inR$millions)

560580
544

585

564

2010

2011

2012

2013E

Adjusted bydepreciation,stockoptionprogram,taxondividendsfromCMEGroupandprovisions.
Expenses growth considering the midpoint budgetfor2013(R$570million)and estimated IPCAfrom BCBFocus Bulletin (November 30,2012).
34

CAPEXBUDGET
2013Budget:R$260290million
2014 Budget: R$170200 million
2014Budget:R$170200million
InvestmentsclosetoR$1.2billionbetween2010and2014inprojectsbelow:
Capexreductionstartingfrom2014

260290
268
268

204
204

258
258

2010

2011

2012

2013E

(inR$millions)

170200

2014E

3Q101Q13:PUMATradingSystem
20112014:Clearinghouses integration /CORE*
4Q124Q14:DataCenter
2Q123Q13:OTC
20102014:Improvementsininfrastructure
*IPN/COREimplementationrequirestheauthorizationoftheregulators.

35

Appendix

36
36

FullyintegratedBusinessModel
Diversifiedsourcesofrevenues
Servicesforissuers,brokersand
Services
for issuers brokers and
commoditiestrading

Trading,ClearingandDepositoryActivities

Listingg
(stocks,bonds,funds,
assetbackedsecurities,
Amongothers)

TTrading
di
(stocks,derivatives,corporateandgovernment
Bonds,funds,spotUSDollar,amongothers)

Commodities
Certification

CentralCounterparty(CCP)
ClearingandSettlement
(forallproducts)

Others Services
Custodyy
(servicesprovidedforfunds
andothermarket
participants)
MarketData

IndicesLicensing
TradingAccess
((Brokers))

CentralDepository
((stocksandcorporatebonds)
p
)

SecuritiesLendingg
(stocksandcorporatebonds)

SoftwareLicensing
(usedbybrokerage
Housesandother
marketparticipants)
OTCDerivatives
(registrationandcollateral
management)

37

BOVESPASegment:foreigninvestmentflow

MonthlyNetFlowofForeignInvestments*(inBRLbillions)

10.0
7.2

6.5
3.73 .5

2.1
1.7
0.70.4

1.5
0.3

(1.6)

(1.5)

5.1 5.0

44
4.4

(0.6)

3.4
1.9 2.2
0.3

(1.3)

2.9

2.7
0.71.1

0.81.0

(0.4)(0.2)

(1.1)
(1.3)
(2.4)

0.3
(2.3)

0.8

(1.2)
(4.2)

*Includesregulartradesandpublicoffering.UpdateduntilFeb.28,2013.

38

Operationalhighlights:investorsparticipationinTotalVolume
BM&FSegment(InvestorsParticipationinTotalVolume)

Bovespa Segment(InvestorsParticipationinTotalValue)

39

Investment Funds
AUMEvolution(inBRLbillions)
2,189
Equities
FixedIncome

1,787
1 703 1,787
1,703
1,513
1,301

657

861

899

10%

11%

2003

2004

1,070

15%

1,375

22%

14%

2007

2008

18%

18%

2009

2010

1,925

14%

15%

11%

11%

2002

2005

2006

2011

2012

PercentofEquityFundAssets
Brazil

W ld id
Worldwide

Equity
funds
40%

Source:ANBlMA (Jul12)andInvestmentCompanyInstitute ICI(2Q12).

Equity
funds
14%

40

4Q12EARNINGS

41

HistoryofGrowth
EQUITIES
(ADTVinR$billions,mkt capinR$trillionsandturnovervelocityin%)

ADTV
66.6%

63.8%

64.2%

69.8%

1.83

2.33

2.37

2.42

Turnover
Velocity
Mkt Cap

The 200912CAGRof11.1%reflectsgrowthin
marketcapitalizationandturnovervelocity
MarketCapitalization
The27.8%growthbetween200910wasfollowedby
Th
27 8%
th b t
2009 10
f ll
db
aroughlyflatperiod(distinguishedperformance
amongsectorsandreducednumberofpublic
offerings)
TurnoverVelocity
Foreignandlocalinstitutionalinvestors,HFTand
productsdevelopment(ETFs,optionsandsecurities
lending)droveturnovervelocitygrowth

DERIVATIVES
(ADVinthousandsofcontracts,RPCinR$)
1,365

1,134

1,106

1,191

RPC

ADV
The2009
12CAGRof24.0%wasdrivenbythe
The 200912
CAGR of 24 0% was driven by the
growthoftradingininterestratecontractsin
BRL,reflectingstructuralchangesandvolatility
RPC
TherecentrecoveryinRPCisexplainedbya
y
p
y
combinationoftradinginlongermaturity
interestratecontractsinBRLandtheBrazilian
Realsdepreciation
42

BOVESPASegmentPerformance
Growthinvolumes,turnovervelocityandmarketcapitalization
EVOLUTIONOFINVESTORSPARTICIPATIONINADTV
ANDMARGIN
4Q12vs.4Q11:
ADTV:+9.4%,duetoanincreaseof:
AverageMarketCapitalization(+7.8%)
TurnoverVelocity(+122bps),mainly
impactedbyanincreaseinvolatilityandthe
p
y
y
removalofthe2%IOFtaxinDec11
Margin:stable

HFTs PARTICIPATION

(inR$billions)

AVERAGE MARKET CAP AND TURNOVER VELOCITY

AVERAGEMARKETCAP.ANDTURNOVERVELOCITY

(inR$millions)

43

BM&FSegmentPerformance
HighgrowthinInterestRateContractsinR$
ADVANDRPCEVOLUTION
4Q12vs.4Q11:
ADV:
ADV +15.4%,reflectinganincreaseof+27.2%in
15 4% fl i
i
f 27 2% i
ADVofInterestRatescontractsinR$
RPC: +4.1%,duetothe:
g
LongermaturitiesinInterestRatecontractsinR$
FXdepreciation(R$/US$) FXandInterestRate
contractsinUS$
DecreaseofHFTsparticipationintheADV

(in millions of contracts)

1.269
1.133

3.4
2.7
2.7

25
2.5
0.3
0.5

0.3
0.5

0.2

1.5

1.7

4Q11

1Q12
Int.RateBRL

HFT:ADVANDMARKETPARTICIPATION

1.205

1.172

1.157

0.3
0
3
0.5

0.1

FX

2.8

2.7
2.7

0.2

0.4
0.5

0.3
0.5

0.1

2.3

1.8

1.9

2Q12

3Q12

4Q12

Indices

Others

0.1

RPC(R$)

INTERESTRATESINR$ VOLUMESBYMATURITY(%)

(in thousands of contracts)

7.3%
341.8
25.2
145.8

8.0%

6.3%

412 5
412.5

404.4
10.1

101.8
134.8

119.9
50.9

129.5
46.5

4Q11

1Q12
FX

5.7%
51%

342.2
0.9

192.5
136.9

Equities

6.7%

209.1

307.4
0.1
208.8

6%

58%

10%

23%

64%

64.8

45.5
45
5
53.1

9%

5%
11%

2Q12

3Q12

4Q12

4Q11

1Q12

Others

%inOverallVolume

1stMaturity

86%

90%

79%

71%
67%

68%

4%

13%

73.8
58.3

Minicontracts

78%

6%

2ndMaturity

7%
7%

15%

22%
4%

3%
2Q12

3rdMaturity

2%

6%
3Q12

4thMaturity

2%

8%
6%
4Q12
5thMaturity

44

HistoryofGrowth
Businessgrowthinresults
INCREASEOFRETURNTOSHAREHOLDERS ADJUSTEDEARNINGSPERSHARE
(inR$)

REVENUESANDRESULTS GROWTH
(inR$millions)

45

FinancialStatements
Strongoperating performance

SUMMARYOFINCOMESTATEMENT(CONSOLIDATED)

(inR$millions)

2012

2011

Var.
2012/2011

NetRevenue
TotalExpenses
Operating Income
Financial Income
EBT
Netincome*
Adjustednetincome
Adjusted earningspershare(inR$)

2,064.8
(763.1)
1,301.7
208.9
1,659.8
1,074.3
1,612.1
0.835

1,904.7
(816.7)
1,088.0
280.7
1,588.2
1,048.0
1,545.6
0.793

8.4%
6.6%
19.6%
25.6%
4.5%
2.5%
4.3%
5.3%

Adjusted Expenses

(563.5)

(584.5)

3.6%

*AttributabletoBM&FBOVESPAshareholders.
46

Disciplinedcostmanagement
ADJUSTEDEXPENSES
R$millions
Adjusted expenses
Depreciationandamortization
Stock option cost
Stockoptioncost
Others
TaxondividendsfromtheCMEGroup
Provisions
Contribution to MRP
ContributiontoMRP

GAAPexpenses

2010
543.9
54.8
30 9
30.9
3.9

2011
584.5
75.2
53 6
53.6
103.3

2012
563.5
93.7
32 3
32.3
73.6

2013e
570.0*

4.0
(0.1)

9.9
1.1
92 3
92.3

37.4
36.2

633.5

816.7

763.1

*Midpoint ofthebudgetrangefor2013

2010 2013e:GAGRof1.6%1
Cash expenses are decreasing in
Cashexpensesaredecreasingin
realtermsasaresultofastrict
costcontrolprogramthrough
whichtheCompanyisleveraging
itsoperationalefficiency
1 CAGR(2010-13) of the inflation is 5.8% a.a.
Source: BCB Focus Bulletin (November 30, 2012) estimatedIPCA

47

IncomeTaxandSocialContribution

In R$millions

2012
TotalCurrentTax
Recognition of Taxes(CME
Taxes (CME Group
Groupss
participation)

(67.3)
(60.2)

OtherTaxes toberebated

(3.4)

Current Tax(BM&FBOVESPASettlement
Bank)

(3.7)

TotalDeferredTax
DifferedLiability(fiscal benefitfrom
goodwill)
Reversionoffiscal credits*

(=)Income TaxandSocialContribution

Cash impact

(518.2)
(539.1)
20.9
(585.5)

*IncludesthetaxbenefitfrominterestoncapitalofR$90milliondeclaredinNovember2012.
48

FinancialStatements
Profitsandadjustedexpensesreconciliation
ADJUSTEDNETINCOMERECONCILIATION
(in R$millions)
R$ millions)
Net Income*
Stockoptionsplan
DeferredLiabilities
Equity method investment (netoftaxes)
Recoverable taxes paid overseas
Contribution to MRP
Provisions - Health Plan (net of taxes)
Adjusted net income
Adjustednetincome

4Q12
217.3
7.9
134.8
(14.0)
15.2

18.2
379 4
379.4

Change
4Q12/4Q11
191.1
13.7%
10.4
23.9%
124.7
8.1%
(128.9)
89.2%
63.0
75.9%
92.3

352 7
352.7
7 6%
7.6%

4Q11

2012

2011

1,074.3
32.3
539.1
(111.9)
60.2

18.2
1 612 1
1,612.1

1,048.0
53.6
498.3
(209.6)
63.0
92.3

1 545 6
1,545.6

2012

2011

(763.1)
(763
1)
93.7
32.3
37.4
36.2

(563.5)

(816.7)
(816
7)
75.2
53.6
9.9
1.1
92.3
(584.5)

Change
2012/2011
2.5%
39.8%
8.2%
46.6%
4.4%

4 3%
4.3%

*AttributabletoBM&FBOVESPAshareholders.

ADJUSTEDEXPENSESRECONCILIATION

(inR$millions)
TotalExpenses
Total
Expenses
Depreciation
Stockoptionsplan
Tax on dividends from the CME Group
Provisions
Contribution to MRP
AdjustedExpenses

4Q12
(256.0)
(256
0)
23.8
7.9
18.2
31.9

(174.2)

4Q11
(291.6)
(291
6)
22.1
10.4
2.7
0.2
92.3
(163.9)

Change
4Q12/4Q11
12.2%
12 2%
7.4%
23.9%
580.4%

6.3%

Change
2012/2011
6.6%
6 6%
24.6%
39.8%
278.3%

3.6%
49

Financial Statements
SummaryofBalanceSheetSummary(Consolidated)
ASSETS

LIABILITIESANDSH.EQUITY

(in R$millions)
Current assets

(inR$millions)

12/31/2012 12/31/2011

3,536.3

2,401.1

43 6
43.6

64 6
64.6

3,233.3

2,128.7

259.3

207.8

20,610.8

21,188.8

808.9

1,767.4

Financial investments

573 6
573.6

1 589 1
1,589.1

Others

235.3

178.3

2,928.8

2,710.1

361.0

357.2

16,512.2

16,354.1

Others

16,064.3

16,064.3

Minority shareholdings

24,147.1

23,589.9

Liabilities and Net Equity

C h and
Cash
d cash
h equivalents
i l t
Financial investments
Others
Non-current assets
Long-term receivables

Investments
Property and equipment
Intangible assets
Goodwill
Total Assets

Current liabilities

12/31/2012

12/31/2011

1,660.6

1,929.9

1 134 2
1,134.2

1 501 0
1,501.0

526.4

428.9

Non-current liabilities

3,072.6

2,402.5

Foreign debt issues

1,242.2

1,138.7

1,739.6

1,204.6

90 8
90.8

59 2
59.2

19,413.8

19,257.5

2,540.2

2,540.2

16,037.4

16,033.9

820.3

666.9

16.0

16.5

24,147.1

23,589.9

C ll t l ffor ttransactions
Collateral
ti
Others

Deferred Inc. Tax and Social

Contrib.
Others
Net equity
Capital stock
Capital reserve

50

BM&FBOVESPA
Wellpositionedtocaptureandgenerategrowth

Significantinvestments
intechnologyandsearch
for greater efficiency
forgreaterefficiency
(costcontrol)

FallingInterestRates

Strongneedfor
St
df
Investmentsto
promotegrowth

Investments
portfoliosstill
concentratedinhigh
liquidity fixed
liquidityfixed
incomeproducts

External
Factors

HighPotential
Revenue
Growth

BVMF
Strategic
Focus

Operating
Leverage

Strengtheningof
Strengthening
of
Regulatoryand
Institutional
Structure

FocusonClients:
Developmentof
MarketsandProducts

SustainableResults
(MaximizationofShareholdersReturn)
51