bme business performance 1q 2015

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April 2015

Business Evolution January – March 2015

BusinessPerformance

First quarter2015

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April 2015


DisclaimerThis presentation, which is personal to the recipient, has been prepared and produced by Bolsas y Mercados Españoles, Sociedad Holding de Mercadosy Sistemas Financieros, S,A, (“BME”) solely for the benefit of investment analysis and may not be used for any purpose other than assessment ofinvestments concerning BME, Unless otherwise stated, BME is the source for all data contained in this presentation, Such data is provided as at the dateof this presentation and is subject to change without notice,

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April 2015


Index

A. Results

B. Business Overview

C. Financials

D. Business Drivers

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April 2015


Index

A. Results


C. Financials

D. Business Drivers

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April 2015


ResultsNet profit

Net profit increase of 11.5% compared to 1Q14

+11.5% (€ Million)

42.2 41.538.5

42.747.0

1Q14 2Q14 3Q14 4Q14 1Q15

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April 2015


Solid operating leverage

Costs Revenues Revenues not linked to volumes Ratio

78%

90%

106% 109% 105% 103%112%

118% 114% 112% 114%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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April 2015


Key ratios benchmarking• Efficiency • ROE

- BME´s data as of 31/03/2015

- Average peer Group figures are calculated using la st results published and not taking account of goodwill impairment charges

42.7%

18.8%

BME Average PeerGroup

28.8%

60.2%

BME Average PeerGroup

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April 2015


Dividends: Maximizing shareholders´ returns

Sustainability of Pay-out

• Proposed supplementary dividend: €0.89 per share

0.956 0.986

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

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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April 2015


Index

A. Results


C. Financials

D. Business Drivers

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April 2015


Business Areas

Consolidated Revenues 1Q 2015 - %

EBITDA 1Q 2015- %

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April 2015


191

227

197

271 261

51.4 47.0 44.262.5 56.2

18.015.8 16.4

20.917.7

1Q14 2Q14 3Q14 4Q14 1Q15

Mile

s de

mill

ones

75

51

65

7972 76

90

44

62

96 94

81

94

8186

26.3

12.4 12.722.8

10.5 13.7

26.4

6.9 11.0

24.017.0

21.527.2

13.0 16.1

7.3

5.3 5.4 5.7 5.0 5.16.3

4.85.4

8.66.3

6.06.9

5.35.5

1/14 2/14 3/14 4/14 5/14 6/14 7/14 8/14 9/14 10/14 11/14 12/14 1/15 2/15 3/15

Equity Market

Equity- Turnover (€Mill.)

Sequential growth in volumes

Equity trades (Mill.)

Thousands of € 1Q 2015 1Q 2014 %

Revenues 43,654 41,575 5.0%

Expenses (9,432) (9,805) -3.8%

EBITDA 34,222 31,770 7.7%

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

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April 2015


• Listing activity

Investment flows channeled through the Exchange (€ Million)

• Investment flows channeled through IPOs in 1Q15 reached €4.4 billion (+ 323.7%), ranking second world market by volume of IPOs.

• AENA and Saeta Yield IPOs went listed in 1Q15 by a joint capitalization of €9.6 billion euros. The floating of 49% of AENA is the largest IPO in the history of the Spanish market in terms of placement.

• Investment flows channeled through new shares issued of listed companies increased by 165.3% to €11.1 billion.

Source: FESE (Federation of European Stock Exchanges)

Equity Market

4,180

8,054

4,636

13,813 11,0891,036

3,056

1,155

1804,389

1Q14 2Q14 3Q14 4Q14 1Q15

New shares issued of listed companies New listings (IPOs)

11,110

5,216 5,791

15,478 13,993

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April 2015


1,492 1,480 1,466 1,456 1,447

710 754 751 722 832

1Q14 2Q14 3Q14 4Q14 1Q15

2,2792,217 2,1782,2342,20213.6 12.9 12.4

16.2

14.0

1Q14 2Q14 3Q14 4Q14 1Q15Par Value registered in FI Market value registered in Equity

Securities under custody: Volumes (€ Billion)

Settlement & Registration

Settlement: Number of trades settled(Million of trades)

Improve in volumes registered and revenue growth in settlement


Revenues 21,718 20,246 7.3%

Expenses (4,947) (3,830) 29.2%

EBITDA 16,771 16,416 2.2%

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April 2015


139 145 146 140150

4.1 3.5 3.2 3.0 3.5

1Q14 2Q14 3Q14 4Q14 1Q15

Subscribers (Thousand) P.Quote (Mill.)

Information

Information: Subscribers to primary market sources (Average for the period in thousands of subscribers and millions of accesses per quote)

Continued growth in information clients


Revenues 9,415 7,471 26.0%

Expenses (807) (745) 8.3%

EBITDA 8,608 6,726 28.0%

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

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April 2015


Turnover BME Clearing REPO (€ Million)

397,583

233,375 237,474 245,613 245,892

1Q14 2Q14 3Q14 4Q14 1Q15

10,364 10,239

5,051

6,4735,993

1Q14 2Q14 3Q14 4Q14 1Q15

Volume (Mwh) traded in Energy market (Thousand)

Clearing

Lower activity in repo market


Revenues 4,435 4,729 -6.2%

Expenses (2,523) (1,588) 58.9%

EBITDA 1,912 3,141 -39.1%

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April 2015


4,536

3,660

6,747

5,047

1Q14 1Q15

1,6981,862

674854

1,8721,782

1Q14 1Q15

Derivatives

(Thousand of contracts)

IBEX® futures growing

Stock derivatives contracts tradedIndex derivatives contracts traded

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

(Thousand of contracts)


Revenues 3,159 3,230 -2.2%

Expenses (1,274) (1,370) -7.0%

EBITDA 1,885 1,860 1.3%

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April 2015


96,757 100,032

69,482

88,701

126,894

1Q14 2Q14 3Q14 4Q14 1Q15

Fixed income

Lower intermediation but higher volume issued

AIAF – Volume admitted (Million €)

Primary market recovery in Fixed Income:

• Issuance of public debt grew by 3.5%compared to 2014 to €70.0 billion.

• Corporate fixed income admissions increased95.0% mainly due to the issuance ofinstruments of medium and long term.

• The alternative bond market (MARF) managedto capture €77 million in the quarter to financeSMEs.


Revenues 2,504 3,298 -24.1%

Expenses (1,271) (1,249) 1.8%

EBITDA 1,233 2,049 -39.8%

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April 2015


IT & Consulting

VT Network/BME Highway

Access/Interface markets

Consulting/Outsourcing

maX Terminals / VT GatewayFinancial reporting using Swift

London Hub connectionsProximity/Colocation services

International consulting: Algeria, Peru, BoliviaOutsourcing services


Revenues 4,630 3,754 23.3%

Expenses (2,794) (2,698) 3.6%

EBITDA 1,836 1,056 73.9%

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April 2015


Breakdown by business areasRevenues


Equity 43,654 41,575 5.0%

Settlement & Registration 21,718 20,246 7.3%

Clearing 4,435 4,729 -6.2%

Information 9,415 7,471 26.0%

Derivatives 3,159 3,230 -2.2%

Consulting & IT 4,630 3,754 23.3%

Fixed income 2,504 3,298 -24.1%

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April 2015


Breakdown by business areasEBITDA


Equity 34,222 31,770 7.7%

Settlement & Registration 16,771 16,416 2.2%

Clearing 1,912 3,141 -39.1%

Information 8,608 6,726 28.0%

Derivatives 1,885 1,860 1.3%

Consulting & IT 1,836 1,056 73.9%

Fixed income 1,233 2,049 -39.8%

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April 2015


Index

A. Results


C. Financials

D. Business Drivers

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April 2015


Balance sheet

as of March, 31 st

(Thousands of €)2015 2014

Goodwill 80,619 80,619

Other non-current assets 88,193 87,525

Cash and cash equivalents 251,929 218,468

Current financial assets 100,167 97,116

Non-Group current financial assets 36,133,238 34,438,920

Other current assets 98,504 84,859

Total assets 36,752,650 35,007,507

Owners' Equity 467,002 433,972

Non-current liabilities 18,344 17,151

Current liabilities 36,267,304 34,556,384

Total equity and liabilities 36,752,650 35,007,507

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April 2015


P/L


Revenues 93,048 86,002 8.2%

Expenses (26,767) (25,122) 6.5%

EBITDA 66,281 60,880 8.9%

EBIT 64,718 59,255 9.2%

Financial results 225 478 -52.9%

Share of profit (loss) of associates 66 182 -63.7%

EBT 65,009 59,915 8.5%

Net Profit 47,035 42,185 11.5%

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April 2015


EBITDA 1Q 2015/2014[€ Mill.] Net Profit 1Q 2015/2014 [€ Mill.]

Comparison with 1Q 2015

Revenues 1Q 2015/2014 Costs 1Q 2015/2014

Margins

[€ Mill.] [€ Mill.]+ 8.2% + 6.5%

+ 8.9% + 11.5%

93.086.0

1Q 2015 1Q 2014

26.8 25.1

1Q 2015 1Q 2014

66.3 60.9

1Q 2015 1Q 2014

47.0 42.2

1Q 2015 1Q 2014

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April 2015


28.8% 29.2%

1Q15 1Q14

41.4% 42.4%

1Q15 1Q14

69.6% 68.9%

1Q15 1Q14

Efficiency & ProfitabilityROE Evolution EBIT/Revenues Ratio Evolution

% ROE % EBIT/Revenues

% Cost/EBIT % Efficiency

Cost/EBIT Ratio Evolution Efficiency Ratio Evolution

42.7% 41.1%

1Q15 1Q14

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April 2015


Index

A. Results


C. Financials

D. Business Drivers

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April 2015


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

Source: Bloomberg 1) As of 31/03/15

RK1Q15

60.3

39.0

38.9

35.3

35.2

33.2

29.2

29.2

28.6

28.1

27.9

17.5

14.0

13.8

1

2

3

4

5

6

7

8

9

10

11

28

32

33

0.96

0.62

0.62

0.56

0.56

0.53

0.46

0.46

0.45

0.45

0.44

0.28

0.22

0.22

3.54%

1.72%

3.79%

5.11%

1.38%

2.22%

4.68%

5.00%

1.90%

3.46%

2.51%

1.55%

0.73%

1.30%

CompanyDaily avg. 1Q15 Relative weight at

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

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April 2015


Business drivers: Highly liquid market • Quality of spreads and best market impact for Spanish stocks

Avg. Spread (%)Avg. Spread (%) Avg. Spread (%)

Source: Market annual and monthly reports

0.275%

0.271%

0.273%

0.249%

0.304%

0.322%

0.289%

0.345%

0.340%

0.326%

0.305%

0.277%

0.240%

0.064%

0.062%

0.061%

0.058%

0.059%

0.062%

0.056%

0.061%

0.055%

0.059%

0.063%

0.056%

0.052%

201403

201404

201405

201406

201407

201408

201409

201410

201411

201412

201501

201502

201503

0.927%

0.988%

1.022%

0.960%

1.095%

1.303%

1.102%

1.434%

1.438%

1.283%

1.001%

0.821%

0.753%

Continues the improvement ofliquidity and implicit transactioncosts for the investor:

• IBEX 35® spread is at historiclows of 5.2 basis points, down 1.2basis points compared to March2014.

• Mid and small cap stocks haveimproved their average spread by3.5 and 17.4 basis points,respectively.

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April 2015


• Distribution by markets of business volume of the IBEX 35® companies (2008 – 2014)

Diversified market

Source: Interim Reports from listed companies obtained from CNMV

Spain EU OCDE Rest

19%

20%

25%

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April 2015


Q&A

bme business performance 1q 2015

Economy & Finance

disclaimerthis presentation

presentation orotherwise

persons directors

securities of bme

arenot relevant persons

express instructions

business evolution

united kingdom