BME 3Q15.ppt [Modo de compatibilidad]€¦ · Growth in the future on the IBEX 35® and the future...

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October 2015

Business Evolution January – September 2015

Business

Performance

January–September 2015

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October 2015


DisclaimerThis presentation, which is personal to the recipient, has been prepared and produced by Bolsas y Mercados Españoles, Sociedad Holding de Mercados

y Sistemas Financieros, S,A, (“BME”) solely for the benefit of investment analysis and may not be used for any purpose other than assessment of

investments concerning BME, Unless otherwise stated, BME is the source for all data contained in this presentation, Such data is provided as at the date

of this presentation and is subject to change without notice,

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these forward-looking statements, Forward-looking statements speak only as of the date of this presentation and BME expressly disclaim any obligation

or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation as a result of any change in our expectations

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October 2015


Index

A. Results

B. Business Overview

C. Financials

D. Business Drivers

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October 2015


Index

A. Results


C. Financials

D. Business Drivers

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October 2015


Results

Net profit

Best 9M Results since 2008

+8.4%(€ Million)

118.4

105.1 105.2

122.2

132.5

9M11 9M12 9M13 9M14 9M15

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October 2015


Results

Net profit

Net profit increase of 6.3% compared to 3Q14

+6.3%(€ Million)

38.5

42.7

47.044.5

40.9

3Q14 4Q14 1Q15 2Q15 3Q15

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October 2015


Solid operating leverage

Costs Revenues Revenues not linked to volumes Ratio

78%

90%

106% 109% 105% 103%

112%118%

114% 112%118%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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October 2015


Key ratios benchmarking

• Efficiency • ROE

- BME´s data as of 30/09/2015

- Average peer Group figures are calculated using last results published and not taking account

of goodwill impairment charges

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October 2015


Dividends: Maximizing shareholders´ returns

Sustainability of Pay-out

• Next interim dividend date: 29th December

0.956 0.986

0.40 0.40 0.40 0.40 0.40 0.40 0.40

0.60 0.60 0.60 0.60 0.60 0.60

1.016 0.986

0.60 0.60 0.60 0.60 0.650.89

0.372 0.372 0.372 0.372

2007 2008 2009 2010 2011 2012 2013 2014 2015

First Interim Dividend Second Interim Dividend Suplementary Dividend Extraordinary Dividend

1.972 1.972Total Dividends

/Share

Pay Out 82% 86%

1.9721.9721.972

89% 86% 86%

1.972

98%

1.65

96%

1.89

96%

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October 2015


Index

A. Results


C. Financials

D. Business Drivers

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October 2015


Business Areas

Consolidated Revenues

9M 2015 - %

EBITDA

9M 2015- %

Equity

47.4%

Settlement

24.2%

Clearing

5.3%

Information

11.2%

Derivatives

3.6%

Fixed

Income

2.9%

IT &

Consulting

5.3%

Equity

49.5%

Settlement

25.7%

Clearing

3.3%

Information

13.8%

Derivatives

2.9%

Fixed

Income 1.9%

IT &

Consulting

2.9%

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October 2015


Equity Market

Equity- Turnover (€Mill.)

Ninth consecutive quarter of growth

Equity trades (Mill.)

Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)

Thousands of € 3Q 2015 3Q 2014 % 9M 2015 9M 2014 %

Revenues 36,868 35,382 4.2% 120,895 114,496 5.6%

Expenses (9,485) (9,418) 0.7% (28,344) (28,943) -2.1%

EBITDA 27,383 25,964 5.5% 92,551 85,553 8.2%

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October 2015


• Listing activity

Investment flows channeled through the Exchange (€ Million)• Total investment flows channeled through

Exchange ended September stood at €36.2

billion, 63.9% higher year on year and

outstripping the flows channelled throughout

the whole of 2014.

• BME keeps a prominent position in the IPO

market. The placement of new shares for

the nine month period amounted to €7.9

billion (+51.2%), ranking as the largest in

Europe and fifth globally by value of IPOs.

• Investment flows channeled through shares

issued of listed companies reached €28.3

billion (+67.8%) with €6.7 billion issued in

scrips (-16.3%).

Source: FESE (Federation of European Stock Exchanges)

Equity Market

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October 2015


Par Value registered in FI Market value registered in Equity

Securities under custody: Volumes

(€ Billion)

Settlement & Registration

Settlement: Number of trades settled

(Million of trades)

Revenue stability


Revenues 18,859 19,676 -4.2% 61,794 60,821 1.6%

Expenses (4,283) (4,128) 3.8% (13,723) (12,201) 12.5%

EBITDA 14,576 15,548 -6.3% 48,071 48,620 -1.1%

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October 2015


Information

Information: Subscribers to primary market sources (Average for the period

in thousands of subscribers and millions of accesses per quote)

Information clients and number of clients with direct connections at historic highs

Note: It differs from the data published in 2014 by the addition of primary source subscribers of the derivatives market (MEFF)


Revenues 9,820 7,655 28.3% 28,530 23,174 23.1%

Expenses (1,188) (770) 54.3% (2,833) (2,281) 24.2%

EBITDA 8,632 6,885 25.4% 25,697 20,893 23.0%

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October 2015


Turnover BME Clearing REPO (€ Million) Volume (Mwh) traded in Energy market (Thousand)

Clearing

Revenue growth partially offset the costs associated to Reform


Revenues 4,482 4,120 8.8% 13,536 13,060 3.6%

Expenses (2,420) (1,725) 40.3% (7,439) (5,471) 36.0%

EBITDA 2,062 2,395 -13.9% 6,097 7,589 -19.7%

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October 2015


Derivatives

(Thousand of contracts)

Growth in the future on the IBEX 35® and the future on the Mini IBEX 35®

Stock derivatives contracts tradedIndex derivatives contracts traded

IBEX 35® Futures MiniIBEX 35® Futures IBEX 35® Options Stock Futures Stock Options

(Thousand of contracts)


Revenues 2,988 2,808 6.4% 9,295 9,060 2.6%

Expenses (1,314) (1,223) 7.4% (3,858) (3,953) -2.4%

EBITDA 1,674 1,585 5.6% 5,437 5,107 6.5%

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October 2015


Fixed income

Volume admitted recovery

AIAF – Volume admitted (Million €)

Primary market recovery in Fixed Income:

• Issuance of fixed income in the first nine

months amounted to €311.6 billion (+16.9%).

• Private debt admissions to the Alternative

Fixed Income Market (MARF) continued to rise

during its second year of operations. Issues

totalling €591 million were admitted during the

first nine months, 81.3% more than in 9M 2014.


Revenues 2,269 2,659 -14.7% 7,407 8,709 -15.0%

Expenses (1,294) (1,286) 0.6% (3,852) (3,795) 1.5%

EBITDA 975 1,373 -29.0% 3,555 4,914 -27.7%

Note: Included since 4Q14 the issues admitted to the Alternative Fixed Income Market (MARF)

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October 2015


IT & Consulting

Trading support services

Financial communication

Regulatory Compliance

Proximity/Colocation

Services VT Network

Highway

Confidence.Net (SIR/SICAM)


Revenues 4,318 5,112 -15.5% 13,442 13,640 -1.5%

Expenses (2,637) (2,657) -0.8% (8,042) (8,091) -0.6%

EBITDA 1,681 2,455 -31.5% 5,400 5,549 -2.7%

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October 2015


Breakdown by business areas

Revenues


Equity 36,868 35,382 4.2% 120,895 114,496 5.6%

Settlement & Registration 18,859 19,676 -4.2% 61,794 60,821 1.6%

Clearing 4,482 4,120 8.8% 13,536 13,060 3.6%

Information 9,820 7,655 28.3% 28,530 23,174 23.1%

Derivatives 2,988 2,808 6.4% 9,295 9,060 2.6%

Consulting & IT 4,318 5,112 -15.5% 13,442 13,640 -1.5%

Fixed income 2,269 2,659 -14.7% 7,407 8,709 -15.0%

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October 2015


Breakdown by business areas

EBITDA


Equity 27,383 25,964 5.5% 92,551 85,553 8.2%

Settlement & Registration 14,576 15,548 -6.3% 48,071 48,620 -1.1%

Clearing 2,062 2,395 -13.9% 6,097 7,589 -19.7%

Information 8,632 6,885 25.4% 25,697 20,893 23.0%

Derivatives 1,674 1,585 5.6% 5,437 5,107 6.5%

Consulting & IT 1,681 2,455 -31.5% 5,400 5,549 -2.7%

Fixed income 975 1,373 -29.0% 3,555 4,914 -27.7%

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October 2015


Index

A. Results


C. Financials

D. Business Drivers

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October 2015


Balance sheet

as of September, 30th

(Thousands of €)2015 2014

Goodwill 80,619 80,619

Other non-current assets 90,597 91,573

Cash and cash equivalents 241,551 204,349

Current financial assets 94,684 110,683

Non-Group current financial assets 33,522,583 25,459,077

Other current assets 45,031 45,427

Total assets 34,075,065 25,991,728

Owners' Equity 444,202 427,469

Non-current liabilities 17,488 17,805

Current liabilities 33,613,375 25,546,454

Total equity and liabilities 34,075,065 25,991,728

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October 2015


P/L


Revenues 83,304 79,505 4.8% 264,626 249,035 6.3%

Expenses (25,542) (24,237) 5.4% (78,041) (74,195) 5.2%

EBITDA 57,762 55,268 4.5% 186,585 174,840 6.7%

EBIT 56,134 53,668 4.6% 181,807 170,030 6.9%

Financial results 174 397 -56.2% 981 1,908 -48.6%

Share of profit (loss) of associates 164 326 -49.7% 443 1,058 -58.1%

EBT 56,472 54,391 3.8% 183,231 172,996 5.9%

Net Profit 40,914 38,495 6.3% 132,468 122,229 8.4%

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October 2015


EBITDA 9M 2015/2014[€ Mill.] Net Profit 9M 2015/2014 [€ Mill.]

Comparison with 9M 2014

Revenues 9M 2015/2014 Costs 9M2015/2014

Margins

[€ Mill.] [€ Mill.]+ 6.3% + 5.2%

+ 6.7% + 8.4%

264,6 249,0

9M 2015 9M 2014

78,074,2

9M 2015 9M 2014

186,6 174,8

9M 2015 9M 2014

132,5 122,2

9M 2015 9M 2014

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October 2015


30,7% 30,5% 29,5% 29,8%

3Q15 3Q14 9M15 9M14

45,5% 45,2% 42,9% 43,6%

3Q15 3Q14 9M15 9M14

Efficiency & ProfitabilityROE Evolution EBIT/Revenues Ratio Evolution

% ROE % EBIT/Revenues

% Cost/EBIT % Efficiency

Cost/EBIT Ratio Evolution Efficiency Ratio Evolution

37,4% 36,5%41,1% 40,1%

3Q15 3Q14 9M15 9M14

67,4% 67,5% 68,7% 68,3%

3Q15 3Q14 9M15 9M14

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October 2015


Index

A. Results


C. Financials

D. Business Drivers

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October 2015


Business drivers: Highly liquid market • Spanish blue-chips are of the most liquid stocks in the EMU

Source: Bloomberg 1) As of 30/09/15

RK

9M15

152.1

120.9

112.0

102.2

100.6

100.6

98.9

93.0

90.5

88.9

49.4

47.6

1

2

3

4

5

6

7

8

9

10

27

28

0.79

0.64

0.59

0.53

0.53

0.53

0.51

0.49

0.48

0.47

0.26

0.25

3.35%

3.19%

2.23%

2.38%

1.64%

4.77%

2.34%

4.79%

0.80%

5.13%

1.71%

1.55%

Company

Daily avg. 9M15Relative weight at

EuroStoxx50 (%)1)Turnover (€ Biilion) Turnover (€ Biilion)

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October 2015


• Quality of spreads and best market impact for Spanish stocks

IBEX 35® average annual bid-ask spread

Business drivers: Highly liquid market

Source: Market annual and monthly reports

The progressive narrowing

of the bid-ask spread in

IBEX 35® benchmark has

meant savings in transaction

cost of 5.3 basis points

since 2012.

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October 2015


Value Creation

Latin America “Core” Enrichment

Regulatory

Opportunities

Positive Cycle− Macro Trends− Structural change in financing− Expansionary Monetary Policy− Tax Reform

− IRS− REGIS-TR®− Post-Reform – T2S− Securities Services Solutions− IT Compliance Services− APAs

− Technology− Consulting− Partnership− Open Finance− Regulation

− Índices− New securities (Multis, ETFs,

Derivatives, etc.)− Market Data contents− Funds Platform

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October 2015


Q&A

BME 3Q15.ppt [Modo de compatibilidad]€¦ · Growth in the future on the IBEX 35® and the future...

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