Financial Results BME 1H2013. Source: BME

- 1 -

July 2013

Business Evolution January – June 2013

Business Performance

First Half 2013

- 2 -

July 2013


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AND IT MAY NOT BE PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE.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.

NEITHER THIS INFORMATION NOR ANY COPY OF IT MAY BE TAKEN, TRANSMITTED INTO,

DISCLOSED OR DISTRIBUTED IN THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN. THE

DISTRIBUTION OF THIS INFORMATION IN OTHER JURISDICTIONS MAY ALSO BE RESTRICTED BY

LAW AND PERSONS INTO WHOSE POSSESSION THIS INFORMATION COMES SHOULD INFORM

THEMSELVES ABOUT AND OBSERVE ANY SUCH RESTRICTIONS.

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.

- 3 -

July 2013


Index

A. Results

B. Business Overview

C. Financials

D. Business Drivers

- 4 -

July 2013


Index

A. Results


C. Financials

D. Business Drivers

- 5 -

July 2013


38,5

31,0 30,4 33,0

39,0

2Q12 3Q12 4Q12 1Q13 2Q13

Results Net profit

Net profit increase of 1.3% (+18.3% compared to 1Q13)

+ 1.3% (€ Million)

+ 18.3%

- 6 -

July 2013


Solid operating leverage

Costs Revenues Revenues not linked to volumes Ratio

78%

90%

106% 109% 105% 103%

112% 118%

112%

2005 2006 2007 2008 2009 2010 2011 2012 1H13

- 7 -

July 2013


Key ratios benchmarking

• Efficiency • ROE

- BME s data as of 30/06/2013

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

of goodwill impairment charges

35.6%

14.5%

BME Average PeerGroup

33.1%

48.6%

BME Average PeerGroup

- 8 -

July 2013


Dividends: Maximizing shareholders returns

Pay-out Dividend proposal: maintenance of dividend/share

Proposed interim dividend: 0.4 €/share – September 9th

0.956 0.986

0.40 0.40 0.40 0.40 0.40

0.60 0.60 0.60 0.60

1.016 0.986

0.60 0.60 0.60 0.60

0.372 0.372 0.372 0.372

2007 2008 2009 2010 2011 2012 2013

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

1.972Dividendo

Total/Acción

Pay Out 86%

Dividendo

Total/Acción

Pay Out 82% 86% 89% 86%

1.972 1.972 1.9721.972 1.972

98%

- 9 -

July 2013


Index

A. Results


C. Financials

D. Business Drivers

- 10 -

July 2013


Business Areas

Consolidated Revenues

1H 2013 - %

EBITDA

1H 2013 - %

Equity 35.7%

Clearing & Settlement

28.6%

Listing 6.6%

Information 10.8%

Derivatives 9.0%

Fixed Income

3.0%

IT & Consulting

6.2%

Equity 35.4%

Clearing & Settlement

33.7%

Listing 5.1%

Information 11.7%

Derivatives 7.3%

Fixed Income 2.8%

IT & Consulting

3.9%

- 11 -

July 2013


199

154170

162 165

58.545.1 47.0 48.7 48.2

13.5

8.87.1

10.2 10.6

2Q12 3Q12 4Q12 1Q13 2Q13

Mile

s d

e m

illone

s

6670

63

71

34

49

70

42

57

68

42

52

58

48

59

25.7

15.1 17.6

29.7

6.49.0

28.2

7.6

11.228.2

8.412.1

27.5

9.5 11.1

4.6

4.8 4.1 4.0

2.32.5

2.7

2.3

2.1

3.3

3.5

3.4

3.9

3.2 3.5

4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 1/13 2/13 3/13 4/13 5/13 6/13

Equity Market

Equity (Turnover, volume and shares traded)

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

Thousands of € 2Q 2013 2Q 2012 % 1H 2013 1H 2012 %

Revenues 26,284 29,909 -12.1% 54,215 60,093 -9.8%

Expenses (7,799) (7,985) -2.3% (15,802) (16,200) -2.5%

EBITDA 18,485 21,924 -15.7% 38,413 43,893 -12.5%

- 12 -

July 2013


1,584 1,571 1,590 1,593 1,579

474 498 528 530 537

2Q12 3Q12 4Q12 1Q13 2Q13

Nominal registered in Fixed income Market value registered in Equity

2,1162,058 2,069 2,118 2,12314.0

10.7 10.6 10.411.6

2Q12 3Q12 4Q12 1Q13 2Q13

Securities under custody: Volumes

(€ Billion)

Clearing and Settlement

Sequential recovery in number of trades settled and market value registered in equity

Settlement: Number of trades settled

(Million of trades)


Revenues 24,859 21,854 13.8% 43,465 41,382 5.0%

Expenses (3,552) (3,751) -5.3% (6,932) (7,211) -3.9%

EBITDA 21,307 18,103 17.7% 36,533 34,171 6.9%

- 13 -

July 2013


105100 97 94 92

3.54.0 4.0 3.6 3.8

2Q12 3Q12 4Q12 1Q13 2Q13

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

Market Data & Information

Information: Primary market sources (Average for the period in thousands

of subscribers and millions of accesses per quote)

Recovery of income over the previous quarters


Revenues 8,351 8,701 -4.0% 16,443 17,557 -6.3%

Expenses (1,850) (1,846) 0.2% (3,725) (3,697) 0.8%

EBITDA 6,501 6,855 -5.2% 12,718 13,860 -8.2%

- 14 -

July 2013


5,213

7,909

8,675

7,977

11,363

2Q12 3Q12 4Q12 1Q13 2Q13

• Companies find in the market the mean to adjust debt and reinforce their balances

Investment flows channeled to the Exchange (€ Million) • 2013 continued with strong

levels of activity in flows

channeled to the exchange:

€19.3 billion in 1H13 (+59.9%)

and €11.4 billion in 2Q13

(+118.0%)

• Scrip dividends totalled €2.4

billion in 2Q13 and €5.0 billion

in 1H13 (+22.8% yoy)

• According to data provided by

the world Federation Exchange

(WFE), total amount of flows

channeled through the

exchange places BME as one

of the main European and

worldwide exchange in terms of

source of financing for

companies

Source: FESE (Federation of European Stock Exchanges)

Listing

- 15 -

July 2013


2Q12 3Q12 4Q12 1Q13 2Q13

29.8

69.9

85.1

45.0

81.6

Listing

AIAF: New listings (€ Billion)

Commercial

paper

Corporate

bonds

MBS ABS Prefered

securities

Issuers efforts in deleverage

has result in a reduction in

Private Fixed Income listings


Revenues 5,011 5,375 -6.8% 10,047 11,466 -12.4%

Expenses (2,257) (2,314) -2.5% (4,567) (4,629) -1.3%

EBITDA 2,754 3,061 -10.0% 5,480 6,837 -19.8%

- 16 -

July 2013


6,358

3,421

13,446

7,6218,269

5,959

17,714

12,664

2Q12 2Q13 1H12 1H13

1,6831,510

2,705 2,748

954

512

1,450

9881,0581,145

1,540

2,423

2Q12 2Q13 1H12 1H13

Derivatives

(Thousand of contracts)

Sustained revenues compared to a demanding quarter

Stock derivatives contracts traded Index derivatives contracts traded

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

(Thousand of contracts)


Revenues 6,815 7,157 -4.8% 13,616 12,608 8.0%

Expenses (2,735) (2,899) -5.7% (5,658) (5,812) -2.6%

EBITDA 4,080 4,258 -4.2% 7,958 6,796 17.1%

- 17 -

July 2013


379

496

666

340

258

120

75

76

67

92

315,511234,387

419,409

119,135

395,102

2Q12 3Q12 4Q12 1Q13 2Q13

350

742

499

407

571

2Q12 3Q12 4Q12 1Q13 2Q13

407350

499

571

742

Fixed income

Improved revenue by the effect of the number of trades

AIAF – Turnover (Billion €)

Repo Cash Trades MBS&

ABS

Commercial

paper

Corporate

bonds

Preferred

securities


Revenues 2,502 2,403 4.1% 4,580 5,308 -13.7%

Expenses (748) (773) -3.2% (1,515) (1,527) -0.8%

EBITDA 1,754 1,630 7.6% 3,065 3,781 -18.9%

- 18 -

July 2013


IT & Consulting

Trading support Infrastructure

Financial reporting (Highway) and regulatory compliance services

International consultancy services

Proximity/colocation

MaX terminals (Automatic SEND quoting, Risk control, PairsSelect)

Swift engine and Highway for business activities Confidence Net for CIIs and ESIs

Alternative debt market project in Mexico

Algerian public debt market modernisation


Revenues 4,945 4,184 18.2% 9,374 8,286 13.1%

Expenses (2,643) (2,671) -1.0% (5,092) (5,289) -3.7%

EBITDA 2,302 1,513 52.1% 4,282 2,997 42.9%

- 19 -

July 2013


Breakdown by business areas

€ Thousand 1H 2013 1H 2012 % 1H 2013 1H 2012 %

Equity Market 54,215 60,093 -9.8% 38,413 43,893 -12.5%

Clearing & Settlement 43,465 41,382 5.0% 36,533 34,171 6.9%

Listing 10,047 11,466 -12.4% 5,480 6,837 -19.8%

Market Data & Information 16,443 17,557 -6.3% 12,718 13,860 -8.2%

Derivatives 13,616 12,608 8.0% 7,958 6,796 17.1%

IT & Consulting 9,374 8,286 13.1% 4,282 2,997 42.9%

Fixed income 4,580 5,308 -13.7% 3,065 3,781 -18.9%

REVENUES EBITDA

- 20 -

July 2013


Index

A. Results


C. Financials

D. Business Drivers

- 21 -

July 2013


Balance sheet

as of June, 30th

(Thousands of €)2013 2012

Goodwill 82,190 82,190

Other non-current assets 88,901 85,822

Cash and cash equivalents 247,722 317,485

Non-Group current financial assets 39,791,450 37,881,162

Other current assets 137,836 107,046

Total assets 40,348,099 38,473,705

Owners' Equity 403,802 433,459

External Partners 159 0

Non-current liabilities 18,759 18,531

Current liabilities 39,925,379 38,021,715

Total equity and liabilities 40,348,099 38,473,705

- 22 -

July 2013


P/L


Revenues 80,349 81,200 -1.0% 153,381 158,586 -3.3%

Expenses (25,622) (25,757) -0.5% (50,783) (50,837) -0.1%

EBITDA 54,727 55,443 -1.3% 102,598 107,749 -4.8%

EBIT 52,978 53,441 -0.9% 99,062 103,688 -4.5%

Financial results 1,559 1,051 48.3% 2,405 1,592 51.1%

EBT 54,407 54,321 0.2% 101,224 104,961 -3.6%

Net Profit 39,030 38,532 1.3% 72,018 74,045 -2.7%

- 23 -

July 2013


EBITDA 1H 2013/2012 [€ Mill.] Net Profit 1H 2013/2012 [€ Mill.]

Comparison with 1H 2012

Revenues 1H 2013/2012 Costs 1H 2013/2012

Margins

[€ Mill.] [€ Mill.]

- 3.3% - 0.1%

- 2.7% - 4.8%

153.4

158.6

1S 2013 1S 2012

50.8 50.8

1S 2013 1S 2012

102.6 107.7

1S 2013 1S 2012

72.0 74.0

1S 2013 1S 2012

- 24 -

July 2013


31.9% 31.7% 33.1% 32.1%

2Q13 2Q12 1H13 1H12

48.4% 48.2% 51.3% 49.0%

2Q13 2Q12 1H13 1H12

Efficiency & Profitability ROE Evolution EBIT/Revenues Ratio Evolution

% ROE % EBIT/Revenues

% Cost/EBIT % Efficiency

Efficiency Ratio Evolution Cost/EBIT Ratio Evolution

37.1% 34.1% 35.6% 34.1%

2Q13 2Q12 1H13 1H12

65.9% 65.8% 64.6% 65.4%

2Q13 2Q12 1H13 1H12

- 25 -

July 2013


Index

A. Results


C. Financials

D. Business Drivers

- 26 -

July 2013


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

Source: Bloomberg 1) As of 30/06/13

RK

1H13

1

2

3

4

5

6

7

8

9

10

22

27

33

Company

Daily avg. 1H/13

Turnover (€ Biilion) RK

66.0

59.4

57.8

45.2

44.3

44.3

43.3

41.1

40.1

39.1

28.3

25.7

24.4

1

2

3

4

5

6

7

8

9

10

20

25

27

0.53

0.48

0.46

0.36

0.35

0.35

0.35

0.33

0.32

0.31

0.23

0.21

0.20

3.353%

1.230%

1.088%

2.672%

2.076%

2.479%

6.067%

4.087%

3.991%

3.372%

1.292%

0.760%

1.453%

Relative weight at

EuroStoxx50 (%)1)

Turnover (€ Biilion)

- 27 -

July 2013


• Distribution by markets of business volume of the IBEX 35® companies (2008 – 2012)

Diversified market

Source: Interim Reports from listed companies obtained from CNMV

Spain EU OCDE Rest

19%

17%

25%

- 28 -

July 2013


Q&A

Financial Results BME 1H2013. Source: BME

Business

Transcript of Financial Results BME 1H2013. Source: BME