BVMF PRESENTATION - MARCH 2013

7/28/2019 BVMF PRESENTATION - MARCH 2013

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March2013March2013


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ForwardLookingStatements

Thispresentationmaycontaincertainstatementsthatexpressthemanagementsexpectations,beliefsand

assumptionsaboutfutureeventsorresults.Suchstatementsarenothistoricalfact,beingbasedoncurrently

availablecompetitive,financialandeconomicdata,andoncurrentprojectionsabouttheindustriesBM&FBovespa

worksin.

Theverbsanticipate,believe,estimate,expect,forecast,plan,predict,project,targetandother

similarverbs

are

intended

to

identify

these

forward

looking

statements,

which

involve

risks

and

uncertainties

that

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.

Allforward

looking

statements

in

this

presentation

are

based

on

information

and

data

available

as

of

the

date

they

weremade,andBM&FBovespaundertakesnoobligationtoupdatetheminlightofnewinformationorfuture

development.

Thispresentationdoesnotconstituteanoffertosellorthesolicitationofanoffertobuyanysecurities,norshall

therebeanysaleofsecuritieswheresuchofferorsalewouldbeunlawfulpriortoregistrationorqualification

underthesecuritieslaw.Noofferingshallbemadeexceptbymeansofaprospectusmeetingtherequirementsof

theBrazilian

Securities

Commission

CVM

Instruction

400

of

2003,

as

amended.

2


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BVMFSTOCKPRICE

Recent Per ormance

3


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BVMF3 Recentperformance

BVMF3YTD:4.2%IOFs

10/17

IbovespaYTD:5.8%.

Goodwill

11/30

R$13.01Competition

News01 05

R$13.10

Rumors

ReductionsofVolumesEstimatesbytheMarket Removalof

IOFonEquities12/01

R$10,54

ChangeofIOFonforeignexchange

transactions

aboutIOFExchangesMergers

02/08

R 11.18

BATs

02/15

R$11.43NewIOFon

06 14

Derivatives

07/26

R$9.55

DirectEdge11/21

R$10.11

0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 3 3

Oxera's ReportRelease

06/18

Aug1

Sep1

Oct1

Nov1

Dec1

Jan

Feb

1

Mar1

Apr1

May

Jun

Jul

Aug1

Sep1

Oct1

Nov1

Dec1

Jan

Feb

1

Mar1

Apr1

May

Jun

Jul

Aug1

Sep1

Oct1

Nov1

Dec1

Jan

Feb

1

BM&FBOVESPA IBOVESPA

Updateduntil02/28/2013. 4


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BRAZILIANMARKETOPPORTUNITIES

5


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EquityMarket(BOVESPASegment)LowpenetrationintheBrazilianmarket

Numberofcustodyaccounts(thousands) Pensionfundsportfolio

LowpenetrationofequityR$574billion

investorsportfolios

Stableandlowinterestrateenvironmentencourage

Equity

FixedIncomeandOthers

69.9%

moreexposure nequ t es

Recentgrowthinthenumberofretailinvestors,butstilllowcomparedtoother

R$168billion

30.1%

27.7%

72.3%

markets

ListedCompanies

2002 2011

Lownumberoflistedcompaniescomparedtoothercountries

Lack

ofimportant

economic

sectors

in

the

6,856

, , ,retail,ITandpharmaceutical,

Investmentcyclemaybringnewcompaniesandsectorstotheexchange

,

4,041 3,9723,481 3,200

2,7672,056 1,784

364

Source:ABRAPP,WFEandBM&FBOVESPA6

Currently,SMEsarenotabletoraisemoney

throughequity

easilyIndia USA China/HK Canada Japan Spain UK Australia Korea Brazil


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DerivativesMarket(BM&FSegment)Growthincreditlevelwillfavorvolumes

CredittoGDP TradeFlow(totalImports+ExportsinUSDbillions)

53.5%Mortgage 482

27.4%

TotalCredit

229 281371

281384

4.5%6.3%

InterestRateinBRLcontracts:growthincreditlevels,speciallyinfixedrates,supportincreasetheactivityof

Jan

01

Jul

01

Jan

02

Jul

02

Jan

03

Jul

03

Jan

04

Jul

04

Jan

05

Jul

05

Jan

06

Jul

06

Jan

07

Jul

07

Jan

08

Jul

08

Jan

09

Jul

09

Jan

10

Jul

10

Jan

11

Jul

11

Jan

12

Jul

12

2006 2007 2008 2009 2010 2011 2012

FXcontracts:growthintheamountofforeigntradingandchangeinthecultureofhedgingfromentrepreneurscan

pushup

volumes

in

this

group

of

contracts,

mainly

in

currencies

other

than

US$

Indexbasedcontracts:growthincashequitymarket,thelaunchinganddevelopmentofETFsandthegrowthofexposuretoequitybyinstitutionalinvestorscandrivethegrowthofthesecontracts

7

Commoditiescontracts:

cash

settled

contracts

and

the

change

in

the

behavior

of

farmers

that

are

becoming

more

sophisticated


8/52

MAININITIATIVES

8


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HighGrowthProductsGrowingsophisticationofmarketparticipants

SecuritiesLendinRealEstateFunds FIIsO tionsMarket

Initiatives todevelop

and

incentivize

volume

growth

in

some

products;

Performanceshowsthattheinitiativesarebeingwellreceivedbythemarket.

(OpenInterest averagefortheperiod inR$

billions)

(ADTVinR$millions)

+49.8%

(ADTVinR$millions)

CAGR(09-13): +154.6% CAGR (09-13): +35.2%

48.8

73.1

20.530.2 31.9

42.539.1

ADTVbefore

MarketMaker

ADTVafter

MarketMaker*

.

2009 2010 2011 2012 2013*

. .3.7

.

2009 2010 2011 2012 2013*

ETFs Tesouro Direto AgribusinessCreditBill

(ADTVinR$millions) (Custody inR$billions)

62%ofAUMofmarketshareregistersareatBM&FBOVESPA(Dec12).

CAGR(0913):+50.5% CAGR(0913):+35.8%

(Volumeregistered inR$billions)

20.0

48.7

115.995.6

2.9 3.96.1

9.0 9.9

.

2011 2012

18.6 .

2009 2010 2011 2012 2013* 2009 2010 2011 2012 2013*

*YDT2013 Updateduntil02/28/2013,exceptTesouroDireto(until01/31/2013). 9


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StrategicProjects

Multiasset

trading

platform

(PUMA

Trading

System)

Stateoftheartintradingtechnologyandtechnologicalindependency

Derivativesmodulesuccessfullyimplementedin2H11

LicensingTRADExpress RealTimeClearingsystem

Equitiesmarkettobeconcludedin1Q13

Objective:integratingandmodernizingourexistingclearingfacilitiesshouldproceedover2013.

Integrated tests with the market and implementation of the systems scheduled to take place in 2013/2014

Partnership advantages:

cense o use e so ware

Access to the source code

Selling rights over our new clearing platform

RegistrationsystemsforOTCderivatives

Objective: modernize,improveandexpandtherangeofourregistrationservicesforOTC

derivatives,while

offering

our

customers

a

streamlined,

quality

solution

and

thorough

Oneofthemostflexibleandcompleteenginesforregistration,pricediscovery,riskassessment,captureandlifecycleprocessingofthesetransactions

Threemoduleimplementation:thefirstoneisscheduleto1H13,thesecondonefor2H13

10


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ClearingHouses IntegrationFurtherdifferentiationinBVMFposttrade

Equityandcorporate

*Derivatives

*FX Securities

Equity,ETFs and fixed

income cash market

Financialand

n

FXspotmarket

n

Cash market and

derivatives (options andforward)

Securities lending

(futures,options andforward)

OTCderivatives

(US$vs.R$)orwar mar e or

government bonds

INTEGRATEDCLEARINGHOUSE**

=

Capitalefficiency

*AggregateofpledgedcollateralsatourclearinghousestotaledR$176,481.9millionin12/31/2012.**IPN/COREimplementation requirestheauthorizationoftheregulators. 11


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MainProjectsDeliveriesmadeandprogrammed

INTENSEDELIVERY

PHASE

4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 (...)

Migrationof

PUMATrading

(equities)

Fixedincometrading

platform

SecuritiesRegistration

Platform

OTCDerivativesPlatform(Calypso)

Newintegratedclearinghouse/CORE*

NewData

Center

Construction

Startofmigration to the

NewData

Center

Feestructureredesignand theintroductionofincentiveprograms(...) (...)

*IPN/COREimplementationrequirestheauthorizationoftheregulators.

Developmentofnewproducts/markets: ETFs,marketmakingprogramsfortheoptionsmarket;duallistings... ...

12


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BUSINESSMODELANDREGULATORY

FRAMEWORK

13


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PossibleCompetitionImportantconsiderations

EASINGREGULATION

IS

NOT

EXPECTED

Mainrequirements:pretradecontrols,selfregulatory(SRO),offexchangetradesarenotpermitted(internalizationofordersandOTC),CCPforstockstrading,posttradingatthebeneficialownerlevel

Competitioninotherexchangeswasintensifiedaftereasingregulation

THEEXCHANGE

FEES

(TRADING

AND

POST

TRADING)

ARE

PAID

BY

THE

FINAL

INVESTOR

DifferentlyfromUSAandEurope,thefinalinvestorsistheonewhopaystheexchangefees

Brokerscouldntincreasetheirshareintheallintradingcostpieincaseofreductionontheexchangefees

STOCKSTRADINGALLINCOSTINBVMFISCOMPETITIVE

Comparingonlythetradingfeesamongexchangesismisleading.BVMFprovideshigherportionofservicesthanthepeers

,

ITINFRASTRUCTUREMOVINGTOSTATEOFTHEART

IncreasingparticipationofHFTviaColocation(movingtosubmillisecondlatency)

RECENT BM&FBOVESPA INITIATIVES REBALANCING OF FEES STRUCTURE

Shiftbetweentradingandposttradingfees

14


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PanelsponsoredbyCVMMainpoints

OnJune

29,

CVM

sponsored

adiscussion

with

stakeholders

Regulator:thestudyshowsthatcompetitioninexchangeindustryisnoturgent

Participantsview

9Regulator:marketintegrityandtransparencyarepriorities

9Brokers: mostofthemhavedoubtsaboutthebenefitsandshowedconcernsrelatedtocostrisingforthemandrisksforthemarket

9 Investors: ingeneralhaveaperceptionthatpricesareinlinewithinternationalbenchmarksandareconcernedwithmarketintegrity

9Infrastructure

providers

(exchanges):

non

consensus

regarding

the

necessity

of

opening

the

clearing

houseornotinordertocreatetheconditionsforcompetition

BVMFsmainconsiderations:

9UnderstatesregulatoryandIT/infrastructurecostforbrokers

9Disregardsimplicit

costs

of

liquidity

fragmentation

and

does

not

assess

qualitatively

the

price

formationimpacts

9ComparesinadequatelytheothermarketcostswhenitdoesnotusetheAllincost

9Marketsizeisnotbigenoughtoembracenewexchanges

9Recognizestheimportanceofclearinghousesintegration

15


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EquityMarketSettlementStructureBrazilComparedtoUSA

BRAZIL(Allthetrades mustbematchedonan

exchangeenvironment)

USA(Brokerscaninternalizeorders)

BVMFTrading

TradingVenues

DTCCBVMF

Brokers

AandB

Brokers

AandB

Broker

ABroker

B

Clearing(CCP)Settlement

Central

Depository

Investors InvestorsInvestors Investors

100%verticallyintegrated:clearing,settlement andcentraldepositoryatthebeneficialownerlevel

Brokerscontroltheirclientsportfoliosandsettle

DTCCdoestheclearing,settlement andcentraldepositoryofsecuritiesatthebrokerslevel

Eachbroker(primebroker)hasitsownstructuretopositionsthroughBVMFsinfrastructure (this

impactstheposttradefeeschargedbyBVMF)controltheirclientsportfoliosandsettlepositions

(thisimpact theprimebrokerscosts)

16


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BusinessModel

ste xc ange us ness o e

DiversifiedandIntegrated IntegratedDerivatives DiversifiedbutNotIntegrated*

*Donotprovideposttradingservicesfortheequitymarket

MarketCapitalization

(US$

billions)

and

Operating

Margin

(%)

3rd

largest

exchange70.7%

58.1%63.0%

56.6% 60.7% 56.2%

72.4%

53.5%

41.5%

66.6%

20.7 19.913.5 12.0 11.2 9.1 6.6 6.5 5.5 5.2 2.9

2.2

26.2%.

HKEx CME BVMF Deutsche ICE NyseEuronext SGX ASX LSE Nasdaq TMX BME

12MtoJun.30,2012.12MtoMar.31,2012.9MtoSep.30,2012.Source:Bloomberg(02/28/2013).17

Boerse

Oper.Margin(2012)Diversified andintegrated Integrated(Derivatives) Diversified butnot integrated


18/52

BrazilianMarketRegulatoryFrameworkLegalrequirements:resilience,transparence,clearrules.

Brokers&

investors Regulationprohibits internalizationoforders,darkpoolsandATS/MTFs,stockstradinginbothexchangeandOTCsimultaneously

Settlement

and

clearing

of

stocks

trading

must

be

done

SettlementandclearingatthebeneficialownerlevelmaketheBrazilianmarketsaferandmoreresilient

Trading Underthe

regulation

in

place,

potential

competitors

wouldbeobligedtoprovidethesameintegrated

solution with the same rules and trans arenc

Pos

Trading

Thefinalinvestorpaystheexchangefee

Otherexchan es

have

been

seekin

inte rated

models

(selfclearingmodels)

Nakedaccessisnotallowed

Nakedshortsellingisnotpossible

18


19/52

EndofCPMF

Braziliansstocktradingbreakdown

(Financial

TransactionTax)

SarbanesOxleyAct

(Jul.2002)

NovoMercado

Launching

(Dec.2000)

EndofIOFTax(2%)for

foreigninvestors

(Dec.2011)

25.2%

e

33.1%

37.7%

.

29.2%

66.9%

6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 2 2 2 2 2 2 2 2 2 2 2 3 3

Source:Bloomberg(inUSDtradedvalueof35companieswithADRsprograms)

199

199

199

199

200

200

200

200

200

200

200

200

200

200

201

201

Jan

1

Feb

1

Mar1

Apr1

May

1

Jun

1

Jul1

Aug

1

Sep

1

Oct1

Nov

1

Dec

1

Jan

1

Feb

1

OtherUSA Venues BrazilianADRs NYSE BrazilianADRsBM&FBOVESPA companieswithADRs BM&FBOVESPA(exceptcompanieswithADRs)

u u

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total

IPOs 1 7 9 26 64 4 6 11 11 3 1 143Followons 14 5 8 8 10 16 12 8 18 11 11 9 1 131

*Updateduntil02/08/2013. 19

DualListings

2

1

1

1

5


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OPERATIONALHIGHLIGHTS

20


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BOVESPASegment:operationalhighlights

v y u

Averageannualmarketcap(R$trillion) TurnoverVelocity**(12monthsaverage)

*Updateduntil02/28/2013.**Relationofthetradingvalueinthecashmarketandthemarketcapoftheexchange. 21

*


22/52

BOVESPASegment:capitalraisingactivity

Updateduntil02/28/2013.

PublicOfferings

(BRL

billions)

55.6

11.2

30.4

70.1

34.346.0

74.4o ow n

IPO

4.3 8.5 15.1 14.526.8

22.2

63.2

10.8 9.3 0.84.55.4 15.4

7.5 .

7.2 3.9

0.58.8

13.9 18.0 13.21.3

2004 2005 2006 2007 2008 2009 2010* 2011 2012 2013

Pipeline:alreadyannouncedtothemarket

Thereare8offeringsinthepipeline:

IPO(6):AutoBrasil Participaes;Cia.EstadualdeguasEsgotos CEDAE;BioServ;Smiles;BBSeguridadeParticipaes;Alupar Investimento

22

Followons (2):Tupy;Multiplan

Additionaly,there are

16

Real

Estate Funds filed in

CVM:

estimated value of R$3.4

billion

* Excludes the capitalization with barrels reserves by federal government BRL74.8 billion in Petrobras offering. 22


23/52

*

BOVESPASegmentPotentialtoincreasethenumberoflistedcompanies

177%

136%129%

174%

137%

158%

138%129%

2009 2010 2011

HongKong: 438% 481% 365%

109%100%

67%75%

87%

72%

100%

119%107%

75% 76%

96%

72%80%

44%

110% 109% 104%

89% 87%

60% 57% 55% 50% 49% 46%39%

35%

Singapore Canada Chile USA Korea Australia Japan France India Brazil UK China Mexico

Market Ca italization b Economic Sector*Source:WorldBank

11.2%15.7%

22.4%

Dec05 Dec12

14.3%

2.2%

8.8%

26.8%

21.6%11.5%

.

20.4%

5.4%

0.4%5.5%

2.5%

3.6%

8.6%

0.3%11.1%

23

Oil,GasandBiofuels BasicMaterials CapitalGoodsandServices Construction andTransportationConsumer NonCyclical Consumer Cyclical Information Technology Telecommunications PublicUtilities Financial

.


24/52

BM&FSegment:operationalhighlights

verage a y ra e o ume ousan so con rac s

59 3 494205 24 5 126

285308

38 5

3412,5052,701

2,899 2,955 2,497

2,994

3,5183,904

2,590 2,819 2,630 2,626 2,971 2,653 2,856 2 410

3,591

422 501 711988 78 9 843

1,684 1,797 1,9262,054

1,4522,061

2,497 2,681

1,561 1,866 1,723 1,7102,199

1,747 1,856 1,561

2,630

110 168266

47353 5 447

541 496494 483

545

524

520485

425 451

327476 54 7

474

86 74 68

112 88 80

89 123143 104

166

123

158106

137 111123

99 11 3

84

187 109124

167 16 2 150

191 285 334 350362

345 355 331290

805 8521,167

1,7401,5731,521

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* Feb12 Mar12 Apr12 May12 Jun1 2 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13 Feb13

BRLInt.Rate(Thousands) FX(Thousands) Index(Thousands) Others(Thousands)

a eper on rac

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

. . . . . . . . . . . . . . . . . . . . .

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

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 0.034 0.054 0.162 0.176 0.128 0.129 0.116 0.121 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

24

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 2.693 1.139 1.738 1.711 2.475 1.988 2.868

TotalRPC 1.247 1.224 1.527 1.365 1.134 1.106 1.191 1.224 1.227 1.079 1.100 1.074 1.272 1.222 1.277 1.314 1.098 1.242 1.303 1.266 1.191

Updateduntil

02/28/2013.

I t t R t i BRL C t t


25/52

InterestRateinBRLContractsStructuralchangesbehindthegrowthinvolumes

BRLINT.

RATE:

ADV

PER

MATURITY

(MILLIONS

OF

CONTRACTS)

CAGR:+3%Growthininterestratecontracts

1.661.81 1.77

CAGR:+32%

0.910.93

1.35

0.72 0.76

CAGR: 21%

0.28 0.38

0.57

0.51 . 0.77.

2008 2009 2010 2011 2012

FixedRateCredit inBRLbillions PublicDebt/FixedRate inBRLbillions

1st4thMaturity 5thMaturity Total

Dec'12:

BRL850.9Dec'12:

BRL 789.3bn

Jan'05:

BRL180.0

Jan'05:

BRL 151.4bn

25Source:Brazilian CentralBank.

Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12


26/52

HighFrequencyTrading(HFT)

BM&FSegment:

HFT

(ADTV

in

thousands

of

contracts)

and

mkt.

share

8.7% 8.5% 8.9% 9.1%

162 155 14488

66

61

50 50 4959 73

62 56 63 56 58 46

191

31

222 233 239274

239 300

481 474419

343268

288

417

528

403442

365 347 358

317

283

339

304 237 284

4.2% 3.9% 3.6%6.7%

5.4%. . 6.6% 6.9% 5.8% 5.9% 5.8%

. 6.4% . 6.3%5.0%

6.7% 5.6% 5.2% 4.1%

90 93 90 102 92 113203 219 177 142 120 131 146 128 163

225 186 202 223 201 197 227 204 156 18765 71 82

118 101126 124 85 88

141 159150 116 89 61 31 55

4450

51 50 4945 42 42 41 37

BovespaSegment:HFT (ADVinBRLmillion)andmkt.share

Mini FX Equities Other %overallvolume

380

278

230

205

164 166 387 420 365

1,683

1,2961,460

1,339

1,145

1 088

1,367

1,160

1,3661,517 1,473

1,268

1,3321,526

1,363 1,3441,517 1,489

1,580

6.6% 5.9% 5.9%8.7% 7.6% 8.6%

. 10.4% 10.3%.

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%

352 344 321511 495 561

1.0991,099

1.016 1,016 826 785995 854

1.0701,070 1,238

1,243 1,041 1,0691,016 831 884 783 897

346 261 254

293 253 262

311281

259210 303 306

227 265

212 243246

285318

272140 210

192152 151

110 963

746 785 899 974

26

ADTV(Foreigners) ADTV(Individuals) ADTV(Institutionals) %ofoverallmarket


27/52

FINANCIALHIGHLIGHTS

27

4Q12 4Q11 Hi hli ht


28/52

4Q12vs.4Q11HighlightsVolumesgrowthandstrictcostcontrol

FINANCIAL HIGHLIGHTS OPERATIONALHIGHLIGHTS

Gross Revenue: R$544.1 million, +4.2%

BOVESPA Se .: R 238.5 million +6.6%

BOVESPASegment:

ADTV:+9.4%

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

Net Revenue: R$499.2 million, +5.9%

Margin:stable

BM&FSegment:

ADV: +15.4%

Adjusted Expenses: R$174.2 million, +6.3%

2012:R$563.5million(closetothelowrangeofthe

RPC: +4.1%

Highgrowthproducts

ETFs:+61.9%inaveragedailyvalue

Operating Income: R$243.1 million, +35.4%

Tesouro Direto:+38.6%ofassetsundercustody

FIIs:strong

growth

of

volumes

(R$29.0

million in

4Q12)andnumberofinvestors(97.1thousand)

LCA:consistentgrowthofassetsundercustody

Adj. Net Income: R$379.4 million, +7.6%

Adjusted EPS: R$0.196, +7.4%

(R$36.5billion)

2012/2013MAINPROJECTS

Clearinghouses Integration

3

: presentation of IPN to market

Payout: recommendationofadistributionofR$388.7millionin4Q12,totalingR$1,074.3million

PUMA Trading System: progress in delivering the equities module

OTC Platform: certification phase with market participant

Pricing Structure: studies regarding pricing differentiation andincentive programs

. income) New Data Center: construction started

1 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 differencesfrom 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 ofthe regulators. 28

Revenue Breakdown in 4Q12


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RevenueBreakdownin4Q12Diversifiedrevenuesourcesasadifferential

REVENUEBREAKDOWN

37.6%:CashEquities

8.7%:Trading

28.9%:

Post

Trading

37.0%:Financial/CommodityDerivatives

4.8%:Derivatives on Stocksand Indices

5.1%:Depository,CustodyandBackOffice

3.4%:SecuritiesLendin

Gross Revenue:R$544.1 mill ion

20.6%:Other

Revenues

3.0%:Vendors

2.5%:TradingAccess(Brokers)

2.0%:Listing

29

Financial Highlights


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FinancialHighlightsStrongcashpositionandhighpayout

FINANCIALINCOMEADJUSTED

NET

INCOME

(4Q12)

FinancialResultsofR$43.1million,fallof32.7%over4Q11

+7.6%(inR$millions)

FinancialIncomedecreased 23.8%,reflectinglowerinterestrates

Financial

Expenses

had

a

slightly increase

of

1.8%

INVESTMENTS

InvestmentsofR$134.2millionin4Q12

In2012 investmentstotaledR 258.4million withintheCredits from interest on shareholders equity of R$90 milliondeliberated in Nov12 decreased tax charges.

CASHAND

FINANCIAL

INVESTMENTS

budgetrangepreviouslyannounced(R$230 260million)

InvestmentBudgets:

2013:betweenR$260 290million(inR$millions)

2014:betweenR$170 200million

PAYOUT

.

,

,

R$388.7millionindividendstobepaidinApr. 30,2013.

Thepayoutin2012totaledR$1,074.3million,theequivalenttoR$0.5565pershareand100%ofGAAPnet

.

*Includesexpenseswithdepreciationandprovisions.**Includescollateralspledgedbyparticipantsintheformofcash,receivablesandrightsinsecuritiesundercustody,aswellaspayoutsstillundisbursed.***IncludesthirdpartycollateralsandrestrictedfundsatBM&FSettlementBank(BancoBM&F). 30

Cash flow: return to shareholders


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Cashflow:returntoshareholders

CASHFLOW/

USE

OF

CASH

FLOW

IndividualCompanyStatements

(in R$ millions) 2011 2012Var.

2012/2011

Net income 1,048

1,074

Adjustments non-cash items 469 570

Working capital variation 7 60

Operating cash flow 1,524 1,704 11.8%

Investments (net of asset sales) (210) (257)

Received dividends 33 124

Post-investment cash flow 1,347

1,572

16.7%

Dividends and interest on own capital 889 1,148

Interest / change in debt 69 76

Cash / financial investments variation(200) 356

Destination of cash flow 1,347 1,572

Does not consider variation in financial investments and collaterals.

31

4Q12 Expenses


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4Q12ExpensesFocusoncostcontrolandoperationalefficiency

ADJUSTEDEXPENSESTOTAL

EXPENSES

BREAKDOWN

(in R$ millions)

Expenses:

R$256.0

million

AdjustedExpenses: +6.3%vs. 4Q11

*

AdjustedPersonnel:+5.4%vs.4Q11,basicallyduetotheeffectsofannualunionbargaininAug12

DataProcessing: 12%vs.4Q11,duetoexpensesreduction

platforms

Marketing:repriorizationofMarketingactions

Others: reflects mainl the R 15 million transfer to BSMannouncedin3Q12

*Includes expenses with maintenance in general, taxes adjusted by the dividendsfrom CME Group, board and committee members compensation and others. 32

Other Expenses


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OtherExpensesExtraordinaryexpensesin4Q12

PROVISIONFOR

PERSONNEL TAXES

AND

CONTRIBUTIONS OTHERS:

TRANSFER

TO

BSM

+34.2%(inR$millions)(inR$millions) (inR$millions)

+5.4%

IncreaseofTaxonDividendsfromNoncashprovisionofR$27.5million

theCMEGroup:dividendsreceivedfromtheCMEGroupreachedR$60.7millionin4Q12,versusR$8.9millionin4Q11.

ocusons reng en ngmar e

integrity;

BSM(BM&FBOVESPAMarketSupervision)actsinmarketsurveillance

andself

regulation

of

all

markets

relatedtotheCompanyshealth plan;

Theprovisionisrelatedtothepotentialliabilitiesgeneratedbyindirectsubsidies(differencebetweentheaveragecostof

the lan ne otiated b the Com an andmanagedbyBVMF,pursuanttoCVMrule461/07;

TransferofR$15milliontoBSMpreviouslyannouncedwiththeearnings

theestimatedaveragecosttoindividuals);

Employeeswho contributedtotheplanbetween20022009 have therightto

resu tso an w t nt ea uste budgetfor2012;

Goal:Funding

of

BSMs

activities

over

2013.

theeventofseveranceorretirement,as

long

as

they

bear

the

insurance

costs;TheamountprovisionedfollowstheCPC33/IAS19 EmployeeBenefits. 33

ADJUSTED OPEX BUDGET


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ADJUSTEDOPEXBUDGET

2013Budget:R$560580million,thesamerangeof2012 Focusoncostcontrol: in2013,inflationar rowthwillbeneutralizedb hi her

efficiency

(inR$millions)

ExpensesCAGR(201013):1.6%pa

InflationCAGR(20102013)5.8%pa

BVMF PRESENTATION - MARCH 2013

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